Isle Marrone Gravity Drainage District of Vermilion Parish · /¥12. ISLE MARRONE GRAVITY DRAINAGE DISTRICT NO. 1 Vermilion Parish, Louisiana Financial Report Year Ended December

/¥12.

ISLE MARRONE GRAVITY DRAINAGE DISTRICT NO. 1

Vermilion Parish, Louisiana

Financial Report

Year Ended December 31,2010

Under provisions of state law, this report is a public document. Acopy 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 of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court.

Release Date (^l^ju

TABLE OF CONTENTS

Page

Independent Accountant's Review Report 1-2

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS) Statement of net assets 5 Statement of activities 6

FUND FINANCIAL STATEMENTS (FFS) Balance sheet - govemmental funds 9 Reconciliation of the govemmental funds balance sheet to the statement of net assets 10 Statement ofrevenues, expenditures, and changes in fund balances-

governmental fiinds 11 Reconciliation of the statement ofrevenues, expenditures, and changes in

fund balance of tiie govemmental funds to the statement of activities 12

Notes to basic financial statements 13-23

REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedule:

General Fund 25

OWEK SUPPLEMENTARY INFORMATION

Detailed Budgetary comparison schedule: General Fund 27

Schedule of current and prior year findings and management's corrective action plan 28-29

ATTESTATION REPORT AND QUESTIONNAIRE

Independent Accountant's Report on Applying Agreed-Upon Procedures 31-33

Louisiana Attestation Questionnaire 34-35

C. Burton Kolder, CPA-Russell F. Chamijagne, CPA* Vtatw R. anven. CPA" P. Troy Cowvfflo, CPA-Gerald A. TWbodaaiix, Jr..CPA* HdoaA S. Carter. CPA* yWwrR. Mixon, CPA'

Tyne« E. Mixon, Jr.. CPA Man J. LaSry, CPA Attiert R. Logw, CPA.PFS.CSA* Penny AngBKe Sciugglns, CPA Chrislbw L Coutin, CPA MaV T. TKbodoaux, C PA MarshaltW.GuiAy.CPA AI»iM.TBy(of,CPA Jamas R, Roy, CPA Robert J. Malz, CPA KeByM.E3oucel.CPA Chwyl L. Bartley, CPA Mandy B. SsH, CPA Paul L. Datcambre, Jr. CPA Wenda F, Arcemenl. CPA. CVA Kristin B. Oauzat, CPA Richard R. Andersm St., CPA Carolyn C. AnderMO, CPA Matthew E. Margaglo, CPA Jana R, Hrt>ert. CPA

Retired: Conrad 0. Oispmen, CPA* 2006 Harry J, Cloatio, CPA 2007 )

* A ProlanloiMl AcMuMlno CorpenSon

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBUC ACCOUhfTANTS

INDEPENDENT ACCOUNTANT'S REVIEW REPORT

OFFICES

183 South BeaiSaRd. Lafayette, LA 70S08 Phone (337) 232-4141 Fax (337) 232-8660

113 East Bridge SI. Breaux Bridge. U^ 70517 nione (337) 332-4020 Fax(337)332-2W7

1234 David Dr,S» 203 MoroOTCily,IA 70380 Phorw (986} 384-2020 Fax (965)384-3020

408 West CoOon Street \«le Platte. LA 70586 Phone (337} 363-2792 Fax (337) 363-3049

332 WtetSixlh Avenue ObarKn, LA 70655 Phone (337) 639^737 Fex(337)63»-4568

450 East Main Sireet N m r l b e ^ , LA 70560 Phone (337) 367-9204

Fox (337) 367-6208

200 SoulhMtdn Street Al9t}svllle.U7OS10

Phone (337) 893-7944 Fax (337) 893-7046

1013 Main Street FranMln. LA 70538

Phone (337) 82W3272 Fax (337) 828-0290

ISSEsBtV^ddlSl. Mvlavl l IeU7136l

Phone (318) 253«i52 Fa)t(31S)293-W81

621 Mem Street Piowflte, LA 71360

Phone (318) 442-4421 Fax (318) 442-^33

WEBSITE WWW.KCSRCPAS.COM

To tlie Board of Commissioners Isle Marrone Gravity Drainage District No. 1


We have reviewed fte accompanying financial statements of the govemmental activities and the major fund of the Isle Marrone Gravity Drainage District No. 1 (the Drainage District), a component unit of the Vermilion Parish Police Juiy, as of and for the year ended December 31, 2010, which collectively comprise the Drainage District*s basic financial statements, as listed in the table of contents. A review includes primarily applying analytical procedures to management's financial data and making inquiries of the management of the Drainage District. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.

The management of the Dramage District is responsible for the preparation and fair presentation of the fmancial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining intemal control relevant to the preparation and fair presentation of the financial statements.

Our responsibility is to conduct the review in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. Those standards require us to perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements. We believe that the results of our procedures provide a reasonable basis for our report.

Based on our review, we are not aware of any material modifications that should be made to the accompanying fmancial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America,

In accordance with the Louisiana Govemmental Audit Guide and the provisions of state law, we have issued a report, dated June 3,2011 on the results of our agreed-upon procedures.

Member of: AMERICAN iNSTITUTE OF CERTIFIED PUBLIC ACCOUMTANTS

Member of SOCIETY OF LOUISIANA

CERTtFIED PUBLIC ACCOUNTANTS

http://KeByM.E3oucel.CPA

http://WWW.KCSRCPAS.COM

The Isle Marrone Gravity Drainage District No. 1 has not presented management's discussion and analysis infonnation that the Governmental Accounting Standards Board has determined is required to supplement, although not required to be part of, the basic fmancial statements.

The budgetary comparison information on page 25 is not a required part of the basic fmancial statements, but is supplementary information required by the Govemmental Accounting Standards Board. The other supplementary information on page 27 is presented for purpose of additional analysis and is not a required part of the basic financial statements. Such information has not been subjected to the inquiry and analytical procedures applied in the review of die basic fmancial statements, but was compiled from information that is the representation of management, without audit or review. Accordingly, we do not express an opinion or provide any assurance on the supplementary information.

Kolder, Champagne, Slaven & Company, LLC Certified Public Accountants

Abbeville, Louisiana June 3,2011

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCUL STATEMENTS (GWFS)

ISLE MARRONE GRAVITY DRAINAGE DISTRICT NO. 1 Vermilion Parish, Louisiana

Statement of Net Assets December 31,2010

ASSETS

Current assets: Cash and interest-bearing deposits Due fi-om other govemmental agencies

Total current assets

$441,227 286.751

727,978

Noncurrent assets: Capital assets, net

Total assets

3,305

731,283

LIABE.ITIES

Current liabilities: Accounts payable 2,507

Long-term liabilities:

Bonds payable 135,000

Total liabilities 137,507

NET ASSETS

Invested in capital assets Restricted for debt service Unrestricted

Total net assets

3,305 168,936 421,535

$593,776

See accompanying notes and independent accountant's review report.

5


Statement of Activities Year Ended December 31,2010

Govemmental activities: Expenses:

Public works Interest on long-term debt

Total expenses

$189,569 11,058

200,627

General revenues: Ad valorem taxes

State revenue sharing .

Investment earnings

Miscellaneous

Gain on disposal of capital assets

Total general revenues

Change in net assets

Net assets, beginning

Net assets, ending

322,375

3,225

2,677

966

49,408

378,651

178,024

415,752

$593,776


6

FUND FINANCUL STATEMENTS (FFS)

MAJOR FUND DESCRIPTIONS

General Fund

The general fimd is used to account for resources traditionally associated with governments which are not required to be accounted for in another fund.

Debt Service Fund The debt service fiind accounts for the accumulation of monies for repayment of general obligation bonds which were issued to fund drainage work.


Balance Sheet Governmental Funds December 31,2010

ASSETS

Cash and interest bearing deposits Ad valorem taxes receivable Due from other govemmental agencies

Debt Service

General Fund

$280,764 $ 160,463 276,126 8,473

2,152 -__

Total

$441,227 284,599

2,152

Total assets $559.042 $ 168,936 $727,978

LIABILITIES AND FUND BALANCE

Liabilities: Accounts payable $ 2,507 $_ $ 2,507

Fund balance: Reserved for debt service Unreserved, undesignated

Total fund balance

Total liabilities and fimd balance

168,936 168,936 556,535 - 556,535

556,535 168,936 725.471

$559,042 $ 168,936 $727,978

See accompanying notes and independent accountants review report.

9

ISLE MARRONE GRAVITY DRAINAGE DISTRICT NO. 1 Vermilion Parish. Louisiana

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

December 31,2010

Total fund balance for the governmental fiinds at December 31,2010 $ 725,471

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:

Fumiture and equipment, net of $9,765 accumulated depreciation 3,305

Long-term liabilities at December 31,2010:

Notes payable (135,000)

Total net assets of govemmental activities at December 31,2010 $ 593,776


10


Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds


Revenues: Ad valorem taxes State revenue sharing Miscellaneous Investment earnings

Total revenues

General

$308,975 3,225

966

810 313,976

Debt Service

Fund

$ 13,400 -

-

1,867 15,267

Total

$ 322,375 3,225

966

2.677 329.243

Expenditures: Current -

Public works - drainage Debt service -

Principal retirement Interest and fiscal charges

Total expenditures

Excess (deficiency) ofrevenues over expenditures

169,143 1,550 170,693

61,952 2,475

233.570

80,406

20,000 8,583

30,133

(14,866)

81,952 11,058

263,703

65,540

Other financing sources:

Sale of equipment 55,000 55,000

Net change in fund balances

Fund balances, beginning

135,406 (14,866) 120,540 (

421.129 183.802 604.931

Fund balances, ending $556.535 $168,936 $ 725,471


11

ISLE MARRONE GRAVITY DRAINAGE DISTRICT NO. I Vermilion Parish, Louisiana

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of the Governmental Funds

to the Statement of Activities Year Ended December 31,2010

Total net changes in fund balance at December 31,2010 per Statement of Revenues, Expenditures and Changes in Fund Balances $ 120,540

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

Govemmental funds report capital outlay 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.

Depreciation (18,876)

The proceeds of debt issuance (e.g. bonds and leases) provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Assets. Repayment of debt principal is an expenditure in the govenunental fimds, but the repayment reduces long-term liabilities in the Statement of Net Assets. This amount is the net effect of these differences in the treatment of long-term debt and related items. 81,952

The net effect of various transactions involving capital assets (i.e., sales and

trade-ins) is to decrease net assets. (5,592)

Total changes in net assets at December 31,2010 per Statement of Activities $ 178,024


12


Notes to Basic Financial Statements

(1) Summarv of Significant Accounting Policies

The accompanying financial statements of the Drainage District have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to govemmental units. GAAP includes all relevant Govemmental Accounting Standards Board (GASB) pronouncements. In the government-wide financial statements, Financial Accounting Standaids Board (FASB) Accounting Standards Codification have been applied unless those standards conflict with or contradict GASB pronouncements, in which case, GASB prevails. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of these notes.

Such accounting and reporting procedures also conform to the requirements of the industry audit guide. Audits of State and Local Govemments.

The following is a summary of certain significant accounting policies:

A. Financial Reporting Entity

Section 2100 of the GASB Codification of Govemmental Accounting and Financial Reporting Standards (GASB Codification) established criteria for determining the govemmental reporting entity and component units that should be included within the reporting entity. Oversight responsibility by the Police Jury is determined on the basis of the following criteria:

1. Appointment of goveming board 2. Designation of management 3. Ability to significantly influence operations 4. Accountability for fiscal matters 5. Scope of public service

Because the Police Jury created the Drainage District and appoints its board of commissioners, the Drainage District was determined to be a component unit of the Vermilion Parish Police Juiy, the goveming body of the parish and the govemmental body with oversight responsibility. The accompanying fmancial statements present information only on the fund maintained by the Drainage District and do not present information on the Police Jury, the general govemment services provided by that govemmental unit, or the other governmental units that comprise the govemmental reporting entity.

As provided by Louisiana Revised Statute 38:1758, the Isle Marrone Gravity Drainage District No. I (the Drainage District) is governed by five commissioners. These five commissioners are referred to as the board of commissioners and are appointed by the Vermilion Parish Police Jury, The Drainage District was created under Uie authority of Louisiana Revised Statutes 38:1751 - 1802 and was established for the purpose of draining and reclaiming the undrained or partially drained marsh, swamp, and overflowed lands in the district that might be levied and pumped in order to be drained and reclaimed.

13


Notes to Basic Financial Statements (Continued)

B. Basis of Presentation

Govemment-Wide Financial Statements (GWFS)

The statement of net assets and the statement of activities display information about the reporting govemment as a whole. These statements include all the financial activities of the reporting entity. The Drainage District has no business-type activities.

The statement of activities presents a comparison between direct expenses and program revenues for each function of the Drainage District's govemmental activities. Direct expenses are those that are specifically associated with a program or fiinction and, therefore, are clearly identifiable to a particular function. Program revenues include (a) fees and charges paid by the recipients of services offered by the Drainage District, and (b) grants and contributions that are restricted to meeting the operational or capital requirement of a particular program. Revenues that are not classified as program revenues are presented as general revenues.

Fund Financial Statements (FFS)

The accounts of the Drainage District are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a separate set of self-balancing accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.

The funds of the Drainage District are classified as govemmental. The emphasis on fund financial statements is on major govemmental. A fund is considered major if it is the primary operating fluid of the entity 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 of the corresponding total for all funds of that category or type; and

b. Total assets, liabilities, revenues, or expenditures/expenses of the individual govemmental or enterprise fimd are at least 5 percent of the corresponding total for all govemmental and enterprise fiinds combined.

14



The major funds of the Drainage District are described below:

Govemmental Fund -

General Fund

The General fund is the general operating fund of the Drainage District. It is used to account for all financial resources except those required to be accounted for in other funds.

Debt Service Fund

The Debt Service fiind accounts for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related coste.

C, Measurement Focus/Basis of Accounting

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

Measurement Focus

On the govemment-wide statement of net assets and the statement of activities, govemmental 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. The govemmental fund utilizes a "current fmancial resources" measurement focus. Only current financial assets and liabilities are generally included on tiie balance sheet The operating statement presents sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approach is then reconciled, through adjustment, to a govemment-wide view of the Drainage District operations.

b. The govemment-wide financial statement utilizes an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net assets (or cost recovery) and financial position. AH assets and liabilities (whether current or noncurrent) associated with its activities are reported. Govemment-wide fund equity is classified as net assets.

15



Basis of Accounting

In the government-wide statement of net assets and statement of activities, the govemmental activities are presented using the accrual basis of accounting. 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 reported using the current fmancial resources measurement focus and the modified accmal 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 of the current period. For this purpose, the govemment considers revenues to be available if t h ^ are collected within 60 days after the fiscal period. Expenditures (including capital outlay) generally are recorded when a liability is incurred, as under accmal accounting. However, debt service expenditures are recorded only when payment is due.

Revenues

Intergovemmental revenues and fees, charges and commissions for services are recorded when the Drainage District is entitled to the funds.

Ad valorem taxes are recorded in the year taxes are due and payable. Ad valorem taxes are assessed in November, by the Parish Assessor, based on the assessed value and become due on November 15 of each year. The taxes become delinquent on January 1. Anenforceablelienattachestotheproperty as of January 1. The taxes are generally collected in December, January, and Febmaiy of the fiscal year. Property tax revenues are accmed at fiscal year-end to the extent that they have been collected but not received by the Vermilion Parish Tax Collector's Office. Such amounts are measurable and available to finance current operations.

Interest on interest-bearing deposits is recorded or accrued as revenues when eamed. Substantially all other revenues are recorded when received.

Expenditures

The Drainage District's primary expenditures include salaries and insurance, which are recorded when the liability is incurred. Capital expenditures and purchases of various operating supplies are regarded as expenditures at the time purchased.

16

ISLE MARRONE GRAVITY DRAINAGE DISTRICT NO. I Vermilion Parish, Louisiana


D. Assets. Liabilities and Equity

Cash and interest-bearing deposits

For purposes of the statement of net assets, cash and interest-bearing deposits include all demand deposits, saving accounts, and certificates of deposits of the Drainage District.

Receivables

In the govemment-wide statements, receivables consist of all revenues eamed at year-end and not yet received. Major receivable balances for the govemmental activities include ad valorem taxes.

Capital Assets

Capital assets, which include property, plant, and equipment, are reported in the govemmental activities columns in the govemment-wide financial statements. Capital assets are capitalized at historical cost or estimated cost if historical cost is not available. The Drainage District maintains a threshold level of $1,000 or more for capitalizing capital assets. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.

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 assete. 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 asset is as follows:

Estimated Useful Lives

Fumiture and Equipment 5-15 years

In the fund financial statements, capital assets used in govemment fund operations are accounted for as capital outiay expenditures of the govemmental fund upon acquisition.

Compensated absences

Full-time employees of tiie Drainage District with more than one year of service arc allowed two weeks of vacation leave each year; full-time employees wiUi one year's service or less are allowed one week of vacation leave each year. Sick leave is granted on an individual basis as the need occurs. Vacation and sick leave may not be accumulated and carried into fiiture years.

17



Long-term debt

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

All long-term debt to be repaid from govemmental resources is reported as liabilities in the govemment-wide statements. The long-term debt consists of bonds payable and capital lease payable.

Long-term debt for govemmental fimds 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.

Equity classifications

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

a. Invested in capital assets - Consists of capital assets net of accumulated depreciation.

b. Restricted net assets - Consists of net assets with constraints placed on the use either by (1) extemal groups such as creditors, grantors, contributors, 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."

In the fund 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.

E. Revenue Restrictions

The Drainage District has restrictions placed over certain revenue sources from state or local requirements. The primary restricted revenue source includes:

Revenue Source Legal Restrictions of Use

Ad valorem taxes See Note 2

18



The Drainage District uses unrestricted resources only when restricted resources are fully depleted.

F. Budgets and Budgetary Accounting

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

1. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP).

2. The budget is employed as a management control device during the year that assists its user in financial activity analysis.

3. All budget appropriations lapse at year-end. The budgets presented are the originally adopted budget and the final amended budget

For the year ended December 31, 2010, expenditures did exceed appropriations in the General Fund.

G. Estimates

The preparation of financial 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 of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

(2) Ad Valorem Taxes

Ad valorem taxes attach as an enforceable lien on property as of January 1 of each year. Taxes are assessed on a calendar year basis, become due on November 15 of each year and become delinquent on January 1 of the following year. The taxes are based on assessed values determined by the Tax Assessor of Vemiilion Parish and are collected by the Sheriff. The taxes are remitted to the Drainage District net of deductions for Pension Fund contributions.

For the year ended December 31, 2010, taxes of 33.59 mills were levied on property with assessed valuations totaling $9,392,270 and were dedicated as follows:

Maintaining and improving canals 32.59 mills Retirmg bonds LQO mills

Total 3152 miHs

Total taxes levied were $315,486. Taxes receivable at December 31,2010 were $284,599 all of which is due from Vermilion Parish Sheriff Department (see Note 4).

19



(3) Cash and Interest-Bearing deposits

Under state law, the Drainage District 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 Drainage District may invest in United States bonds, treasury notes, or certificates and time deposits of state banks organized under Louisiana law and national banks having principal offices in Louisiana. At December 31, 2010 the Drainage District has cash (book balances) totaling $441,227.

Demand deposits $ 338,431 Time deposits 102,796

Total $ 441.227

Custodial credit risk for deposits is the risk that in the event of the failure of a depository financial institution, the District*s deposits may not be recovered or will not be able to recover the collateral securities that are in the possession of an outside party. These deposits axe stated at cost, wliich approximates market. Under state law, these deposits (or the resulting bank balances) must be secured by federal deposit msurance or the pledge of securities ovraed by the fiscal agent bank. The market value of the pledged securities 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 balances) at December 31,2010, are as follows:

Bank balances $ 442,992

Total federal insurance $ 442,992

As of December 31,2010, the District's total bank balances were fiilly insured and, therefore, they were not exposed to custodial credit risk.

(4) Due from Other Govemmental Agencies

Amounts due from other govemmental agencies at December 31,2010 consisted of amounts due from the State of Louisiana for state revenue sharing in the amount of $2,152, and due from the Vermilion Parish Sheriff for ad valorem taxes in the amount of $284,599.

20



(5) Capital Assets

A summary of changes in capital assets follows:

1/1/2010 Additions Deductions 12/31/2010

Govemmental activities; Furniture and equipment $ 180,819 $ - $ (167,749) $ 13,070 Less: accumulated depriciation (153,046) (18.876) 162.157 (9,765)

Govemmental activities, capital assets, net $ 27,773 $ (18,876) $ (5,592) $ 3,305

Depreciation expense in the amount of $18,876 was charged to the pubiic works function.

(6) Long-Term Liabilities

The following is a summary of debt transactions of die Drainage District for the year ended December 31.2010:

Amount Beginning Ending Due in Balance Additions Reductions Balance One Year

General Obligation Bonds: Series 2001 $ 155,000 $ - $ (20,000) 1135,000 $_

Long-term debt payable at December 31,2010 is composed of the following:

General Obligation Bonds: Original issue of $300,000 General Obligation Bonds dated Febmary 1, 2001, retired in various annual installments, interest rate .10% to 7.00%, final maturity February 1,2016. j35 QQO

Total $ 135,000

21



The debt service requirements to maturity of all long-term debt obligation outstanding as of December 31, 2010 is as follows:

Year Ending December 31,

2011

2012

2013

2014

2015

2016

Totals

Govemmental Activities Principal payments

$ -25.000 25,000 25,000 30,000 30,000

Interest payments

$ 3,591 6,558 5,283 3,951

. 2,453 817

Total

$ 3,591 31,558 30,283 28,951 32,453 30,817

$ 135,000 $ 22,653 $ 157.653

(7) Compensation Paid Board of Commissioners

The schedule of compensation paid board of commissioners is presented in compliance with House Concurrent Resolution No. 54 of the 1979 Session of the Louisiana Legislature. The per diem paid to board members is included in the expenditures of the General Fund. Each member of the board receives $120 for each day of attendance at meetings of the board. The supervisor receives a fixed amount per month for meeting attendance as well as the coordination of drainage work in lieu of a per diem. The amoimt was $13,020 in 2010. The schedule of compensation at December 31, 2010 is as follows:

Lovelace Uonard (1/1/2010 - 3/31/2010) Sandms Stelly (4/1/2010 -12/31/2010) John O. Abshire Paul Suire Randal Dale Stelly

Total

$ 360 1,320 1,800 1,680

840

$ 6,000

(8) Litigation

There was no litigation pending against die Drainage District at December 31,2010.

22



(9) Risk Management

The Drainage District is exposed to various risks of loss related to torts; theft of, damage to and destmction of assets; errors and omissions; and natural disasters for which the Drainage District carries commercial insurance. There have been no significant reductions in the insurance coverage during the year.

(10) New Accounting Pronouncement

In March 2009, the Govemmental Accounting Standards Board (GASB) approved Statement No. 54, "Fund Balance Reporting and Govemmental Fund Type Definitions (Statement)". The statement will require fund balances for the District's govemmental fund to be displayed in various classifications depicting the relative strength of the spending constraints placed on the purposes for which resources can be used. The provisions of GASBS No. 54 must be implemented by the District for the fiscal year ending December 31, 2011. Implementation will require the District to restate existing fund balances for the govemmental fund.

(11) Subsequent Events

The company has evaluated subsequent events through June 3, 2011, the date which the financial statements were available to be issued.

23

REQUIRED SUPPLEMENTARY INFORMATION

24


General Fund

Budgetary Comparison Schedule Year Ended December 31,2010

Revenues: Taxes - ad valorem State revenue sharing Invwtment earnings Miscellaneous

Total revenues

Budget Original

$256,660 3,128

600

260,388

Final

$266,424 3,219

900 966

271.509

Actual

$308,975 3,225

810 966

313,976

Variance -Favorable

(Unfavorable)

$ 42.551 6

(90)

42,467


Public works - drainage Debt Service -

Principal payments Interest payments

Total expenditures

137,602 168,607 169,143

18,319

3.237

61,952

2,475

61,952

2,475

159,158 233,034 233,570

(536)

1536)

Excess ofrevenues

over expenditures


Proceeds from sale of assets

101,230 38,475 80,406 41,931

55.000 55,000 -

Net change in fund balance

Fund balance, beginning

Fund balance, ending

101,230 93,475 135,406 41,931

421,129 421.129 421.129 -

$522.359 $514.604 $556.535 $ 41,931

See independent accountant's review report.

25

OTHER SUPPLEMENTARY INFORMATION

26


General Fund

Detailed Budgetary Comparison Schedule Year Ended December 31,2010

Revenues: Taxes - ad valorem State revenue sharing Investment eamings Miscellaneous

Total revenues


Public works - drainage Board member compensation Fuel and oil Insurance Miscellaneous Office expense Payroll tax Professional fees Moving expense Rent and accounting Repairs and maintenance Telephone Salaries and wages Equipment rental Pension fund deduction

Debt Service -Principal payments Interest payments

Total expenditures

Excess ofrevenues over expenditures


Proceeds from sale of assets

Net change in fund balance

Fund balance, beginning

Fund balance, ending

See independent accountant's review report.

Budget Original

$256,660 3,128

600

260,388

Final Actual

18,319 3.237

159,158

101,230

$266,424 3,219

900 .966

$308,975 3,225

810 966

271,509 313,976

61,952

2,475 233,034

38,475

61,952 2,475

233.570

80,406

55,000 55.000

101,230 93,475 135,406

421,129 421,129 421,129

$522,359 $514,604 $556.535

27

Variance -Favorable

(Unfavorable)

$ 42,551 6

(90)

42.467

6,720

14,000

4,000

3,970 550

5,495

4,976

4,750

8,220

18,000

500 65,821

600 -

6,120

18,590

10,919

4,281

557 6,686

4.088

2,910

8,220

9,000

500 65,726 21,246 9,764

6,000

21,217

11,066

4,184

484 5,487

4,088

4,120

8.220

7,114

455 65,726

21,218 9,764

120 (2,627)

(147)

97 73

1,199

-

(1,210)

-

1,886

45 -

28 -

(536)

41,931

41,931

$ 41,931


Schedule of Current and Prior Year Findings and Management's Corrective Action Plan


L Prior Year Findings:

Compliance

09-1 Sale of surplus property

Finding:

The Isle Marrone Gravity Drainage District No. 1 did not comply with the provisions of LSA RS 33:4712(F) related to the sales of surplus property. The Drainage District did not set a minimum price for the sale of surplus items and did not publish the sale information. It is recommended that the Drainage District (I) adopt a resolution giving reasons for the action on the part of the goveming authority and fixing the minimum price and terms of sale, (2) publish a notice of the resolution and proposed sale once at least fifteen days prior to the date of the sale in the official joumal and (3) make the sale to the person with the highest bid.

Current Status:

Resolved

Intemal Control Over Financial Reporting

09-2 Inadequate Segregation of Accounting Functions

Finding:

Due to the small number of employees. Isle Marrone Gravity Drainage District No. 1 did not have adequate segregation of functions within the accounting system.

Current Status:

Unresolved. See item 10-1

Other Matters

There were no findings in tiiis section at December 31,2009.

4

(continued)

28


Schedule of Current and Prior Year Findings and Management's Corrective Action Plan (Continued)


II- Current Year Findings:

Compliance

There were no findings in this section at December 31,2010.

Intemal Control Over Financial Reporting

10-1 Inadequate Segregation of Accounting Functions

Finding:

Due to the small number of employees. Isle Marrone Gravity Drainage District No. 1 did not have adequate segregation of functions within the accounting system.

Management's Corrective Action Plan:

Jewitt Hulin. Secretary/Treasurer, has determined tiiat it is not cost effective to achieve complete segregation of duties within the accounting department. No plan is considered necessary.

Other Matters

There were no findings in this section at December 31,2010.

29

ATTESTATION REPORT AND QUESTIONNAIRE

30

C. Burton KoWor, CPA' RuBsel F. Champasne, CPA* Wctor R. Stavan. CPA* P,TroyCourvill8,CPA* GeraW A. ThitxxlBaux. Jf.,CPA' Robert S. Cartor, CPA" Arthur R. Mlxon, CPA*

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS

Tynes E.Ml)(on,Jr„ CPA ASen J. LaBry, CPA Albwl R. Leger, CPA,PFS,CSA" Penny AngeHe Scrugi^ns, CPA CW«ine L Coutin, CPA Mary T. TWbodeaux, CPA M»8nallW.GukJry,CPA Alan M. T a ^ . CPA James R, Roy, CPA Robert J. Metz. CPA Ketly M. Doucet, CPA Chwyl L. Barttey, CPA Manay B. Self, CPA Paid L. Oelcart^e. Jr. CPA Waoda F. Aroemanl. CP^ CVA Kristin B. Dauzat, CPA Richard R. Anderson Sr., CPA Carolyn C. Anderaon, CPA Matthew E. Margaglio, CPA Jane R, Hebert, CPA

Retired: Conrad 0. Chapman. CPA' 2006 HarTyJ,aosHo,CPA 2007

* A Pnftidonsi AocoiaiUng ConmnUon INDEPENDENT ACCOUNTANT*S REPORT ON APPLYING AGREED-UPON PROCEDURES

OFFICES

163 South Beacfle Rd. Lafayette, IA70S08 Phone (337) 232-4141 Fax (337) 232-8660

4S0 East Mdn Street NBwKierl8.LA70S60

Phone (337) 367-9204 Fax(337)367-«a»

113 East Bridge Si. 200 South M^n Street K^suxBrMge, LA70617 MibevSe. LA70S10 Phone (337) 332-4020 Phone (337) 893-7944 Fax (337) 332^867 Fax (337) 893-7946

1234 David pf. Ste 203 Morgan City, LA 70360 Mwno (965) 384-2021 Fax (935) 364-3020

408 Wtet Cotton Street Vine Platte, LA 70586 Phme (337) 363-2792 Fax (337) 363-3049

332 West Sbdh Avenue Oberlin, U 70655 Phone (337) 63M737 Fax (337) 639-4568

1013 Main Street FranMin, U 70538

Phono (337) 828-0272 Fax (337} 828-0290

133 East WaddnSL MailisvaeLA71351

Ph«ie(318)253«2S2 Fax (318) 253-8881

621 Main Sireet Phe^ne, LA 71360

Phnw (316) 442-4421 Fax (316) 442-9833

WEBSITE WWW.KC8RCPAS.COM

To the Board of Commissioners Isle Marrone Gravity Drainage District No. I


We have performed the procedures included in the Louisiana Govemment Audit Guide and enumerated below, which were agreed to by the management of the Isle Marrone Gravity Drainage District No, 1 (the Drainage District), and the Legislative Auditor, State of Louisiana, solely to assist the users in evaluating management's assertions about the Drainage District's compliance with certain laws and regulations during the year ended December 31, 2010, included in the accompanying Louisiana Attestation Ouestionnaire. Management of the Drainage District is responsible for its financial records and compliance with applicable laws and regulations. This agreed-upon procedures engagement was performed in accordance with attestation standards established by the American Institute of Certified Public Accountants and applicable standards of Government Auditing Standards. The sufficiency of these procedures is solely the responsibility of the specified users of the report Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

Public Bid Law

1. Select all expenditures made during the year for material and supplies exceeding $30,000, or public works exceeding $150,000, and determine whether such purchases were made in accordance with LSA-RS 38:2211-2251 (the public bid law).

There were no expenditures made during the year which exceeded $30,000 for materials and supplies, or $150,000 for public works.

Code of Ethics for Public Officials and Public Employees

2. Obtain from management a list of the immediate family members of each employee as defined by LSA-RS 42:1101-1124 (the code of ethics), and a list of outside business interests of all employees, as well as their immediate families.

Management provided us with the required list including the noted information. Member of: AMERICAN INSTITUTE OP CERTIFIED PUBLIC ACCOUNTANTS 31

Member of: SOCIETY OF LOUISIANA

CERTIFIED PUBLIC ACCOUNTWfrS

http://WWW.KC8RCPAS.COM

3. Obtain from management a listing of all employees paid during the period under examination.

Management provided us with the required list.

4. Determine whether any of those employees included in the listing obtained from management in agreed-upon procedure (3) were also included on the listing obtained from management in agreed-upon procedure (2) as immediate family members.

Mr. Blaine Stelly, Excavator Operator, is an employee of the Drainage District and also the brother of commissioner Randal Stelly. Mr. Blaine Stelly was an employee of the Drainage District before Mr. Randal Stelly was appointed as commissioner. Therefore, he is exempt under R.S. 42:U9C(2). There were no other employees included on the list provided by management in agreed-upon procedure (3) that also appeared on the list provided by management in agreed-upon procedure (2).

Budgeting

5. Obtain a copy of the legally adopted budget and all amendments.

Management provided us with a copy of the original budget and amended budget,

6. Trace the budget adoption and amendments to the minute book.

We traced the adoption of the original budget to the minutes of a meeting held on November 4,2009, which indicated that the budget had been adopted by the Drainage District. We also traced the adoption of the amended budget to the minutes of a meeting held on November 3,2010.

7. Compare tiie revenues and expenditures of the final budget to actual revenues and expenditures to determine if actual revenues failed to meet budgeted revenues by 5% or more or if actual expenditures exceed budgeted amounts by 5% or more.

We compared the revenues and expenditures of the final budget to actual revenues and expenditures. Actual revenues for the year did not fail to meet budgeted revenues by 5% or more and expenditures for the year did not exceed budgeted amounts by 5% or more.

Accounting and Reporting

8. Randomly select 6 disbursements made during the period under examination and:

(a) trace payments to supporting documentation as to proper amount and payee;

We examined supporting documentation for each of the six selected disbursements and found that payment was for the proper amount and made to the correct payee.

(b) determine if payments were properly coded to the correct fund and general ledger account; and

All six payments were properly coded to the correct fund and general ledger account.

(c) determine whether payments received approval from proper authorities.

Inspection of documentation supporting each of the six selected disbursements indicated approvals from the accountant.

32

Meetings

9. Examine evidence indicating that agendas for meetings recorded in the minute book were posted or advertised as required by LSA-RS 42:1 through 42:12 (the open meetings law).

Isle Marrone Gravity Drainage District No. 1 is only required to post a notice of each meeting and the accompanying agenda on the door of the District's office building. Management has asserted that such documents were properly posted.

Debt

10. Examine bank deposits for the period under examination and determine whether any such deposits appear to be proceeds of bank loans, bonds, or like indebtedness.

We inspected copies of all bank deposit slips for the period under examination and noted no deposits which appeared to be proceeds of bank loans, bonds, or like indebtedness.

Advances and Bonuses

11. Examine payroll records and minutes for the year to detenmine whether any payments have been made to employees which may constitute bonuses, advance, or gifts.

We inspected payroll records for the year and noted no instances which would indicate payments to employees which would constitute bonuses, advances, or gifts.

We were not engaged to, and did not perform an examination, the objective of which would be the expression of an opinion on management's assertions. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

This report is intended solely for the use of management of the Drainage District and the Legislative Auditor, State of Louisiana, and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited.

Kolder, Champagne, Slaven ^Company, LLC Certified Public Accountants

Abbeville, Louisiana June 3,2011

33

LOUISIANA ATTESTATION QUESTIONNAIRE (For Attestation Engagennents of Government)

Isle Marrone Gravity Drainage District No. 1

January 5,2011

Kolder, Champagne, Slaven & Co., IXC

200 South Main Street

Abbeville LA, 70510

In connection with your review of our financial statements as of 12/31/10 and for the year then ended, and as required by Louisiana Revised Statute 24:513 and the Louisiana Govemmental Audit Guide, we make the foltowing representations to you. We accept full responsibility for our compliance with the following laws and regulations and the internal controls over compliance with such laws and regulations. We have evaluated our compliance with the following laws and regulations prior to nuking these representations.

These representations are based on the infonnation available to us as of March 26,2011 (date of completion/representations).

Public Bid Law

It is true that we have complied with the publk; bid law, R.S. Title 38:2211-2296, and, where applicable, the regulations of the Division of Administration and the State Purchasing OfRpe.

Yes[nNo[ ]

Code of Ethics for Public Officials and Public Employees

It is true that no employees or officials have accepted anything of value, whether in the form of a service, loan, or promise, from anyone that would constitute a violation of R.S. 42:1101-1124.

Y e s [ ^ N o [ 1

It is true that no member of the immediate family of any member of the goveming authority, or the chief executive of the govemmental entity, has been employed by the governmental entity after April 1,1980, under circunrtstances ttiat would constitute a violation of R.S. 42:1119. .

Y e s [ ^ N o I 1

Budgeting

We have complied with the state budgeting requirements of the Local Govemment Budget Act (R.S. 39:1301-16), R.S. 39:33, or the budget requirements of R.S. 39:1331-1342, as appljeable.

YeslHf No[ ]

Accounting and Reporting

All non-exempt govemmental records are available as a public record and have been retained for at least three years, as required by R.S. 44:1.44:7,44:31, and 44:36. /

Yes n No [ 1

34

We have had our financial statements reviewed in accordance with R,S, 24:513. / Yes[KlNo[ )

Meetings

We have complied with the provisions of the Open Meetings taw, provided in R, S. 42:1 through 42:13. /

Yes[vfNo[ ]

Debt

It is tore we have not incurred any indebtedness, other than credit for 90 days or less to make purchases in the ordinary course of administration, nor have we entered into any lease-purchase E r̂eements. without the approval of the State Bond Commisston, as provided by Arttole Vll. Section 8 of the 1974 Louisiana Constihition, Article VI, Sectbn 33 of the 1974 Louisiana Constitution, and R.S. 39:1410.60-1410.65. /

Yestl>1 No[. l

Advances and Bonuses

It is true we have not advanced wages or salaries to employees or paid bonuses In violation of Article Vll, Sectkm 14 of the 1974 Louisiana Constitution, R.S. 14:138, and AG opinion 79;729.

Yesl^f No[ J

We have disclosed to you all known noncompliance of the foregoing laws and regulations, as well as any contFadictions to the foregoing representatk>ns. We have made available to you documentation relating to the foregoing laws and regulations.

We have provided you with any communications from regulatory agencies or other sources concerning any possible noncompliance with the foregoing laws and regulations, including any communications received t̂ etween the end of the period under examination and the issuance of this report. We acknowledge our responsibility to disclose to you any known noncompliance that may occur suteequent to the issuance of your report.

' f y ! / 2 M u / i J < ^ y Q ^ ' \ Secretarv̂ 'risasurer /^^•^yUO/fpa'te

President /^ ^ - X ? O f / Date

35

Documents

Isle Marrone Gravity Drainage District of Vermilion Parish · /¥12. ISLE MARRONE GRAVITY DRAINAGE DISTRICT NO. 1 Vermilion Parish, Louisiana Financial Report Year Ended December