Livingston Parish Recreation District No. 3app1.lla.state.la.us/PublicReports.nsf/AE1BD12BE... · tax revenue totaled $2,018,542 in the general fund and represents an increase of

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RECREATION DISTRICT NO. 3 OF LIVINGSTON PARISH

REPORT ON AUDIT OF COMPONENT UNIT FINANCIAL STATEMENTS

DECEMBER 31.2011

Under provisions of stale law, this report's a publ c dooTment Acopy of the reporthasbeen submitted to the^n t i and o^er appropriate public officials The eports available for public inspection at the Baton Rouqe office of the Legislative Auditor and where appropr°ate, at the office of the parish clerk of court

n . SEP 0 5 2012 Release D a t e _ _ o t r

CONTENTS

Independent Auditor's Report Page 1 -2

Required Supplemental Information:

Management's Discussion and Analysis 3-10

Government-Wide Financial Statements:

Statement of Net Assets 11

Statement of Activities 12

Fund Fmancial Statements-

Balance Sheet - Govemmental Funds 13

Reconciliation of the Govemmental Funds Balance Sheet to the Statement of Net Assets 14

Statement of Revenues, Expenditures, and Changes in Fund Balances - Govemmental Funds 15-17

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Govemmental Funds to the Statement of Activities 18

Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual - General Fund 19-21

Notes to the Financial Statements . . . . 22-40

Independent Auditor's Report on Intemal Control Over Financiai Reporting and on Compliance and Other Matters Based on an Audit of the Financiai Statements Performed in Accordance with Govemment Auditing Standards 41-42

Surmnary Schedule of Prior Year Audit Findings 43

Hannis T. Bourgeois, LLP Certified Pubhc Accountants

2322 Tremont Drive • Baton Rouge, LA 70809 178 Del Orleans Avenue, Suite C • Denham Springs, LA 70726

Phone 225 928 4770 • Fax 225 926 0945 www hdxpa com

June 12.2012

INDEPENDENT AUDITOR'S REPORT

To the Board of Commissioners Recreation District No. 3 of Livingston Parish

We have audited the accompanying financial statements of the govemmental activities, each major fund, and the budgetary comparison statement of the general fimd of the Recreation District No. 3 of Livingston Parish, "the District" (a component unit of the Livingston Parish Council), as of and for the year ended December 31, 2011, which collectively comprise the District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express opinions on these financial statements based on our audit. The prior year summarized comparative information has been derived from the Recreation District No. 3 of Livingston Parish's December 31, 2010 financial statements and, in our report dated May 5, 2011, we expressed imqualified opinions on the respective financial statements of the govemmental activities, each major fund, and the budgetary comparison statement of the General Fund.

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 of the Umted States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are firee of material misstatement. An audit mcludes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting pnnciples used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opimons.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the govemmental activities and each major fund of the Recreation District No. 3 of Livingston Parish as of December 31,2011 and the budgetary comparison for the General Fund, and the changes in financial position for the year then ended, in cotiformity with accounting principles generally accepted in the United States of America.

As descnbed in Note 1 to the basic financial statements, the Recreation District No 3 of Livingston Parish adopted the provisions of Govemmental Acconting Standards Board Statement Number 54, Fimd Balance Reporting and Govemmental Fund Type Definitions, in 2011.

In accordance with Govemment Auditing Standards, we have also issued a report dated June 12,2012, on our consideration of the District's intemal control over financial reporting and 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 financial reporting and compliance and ^ e 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 our audit performed in accordance with Govemment Auditing Standards and should be considered in assessing the results of our audit.

Accounting principles generally accepted in the Umted States of America require that the management's discussion and analysis on pages 3 through 10 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Govemmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financiai statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to tiie required supplementary information in accordance with auditing standards generally accepted in the Umted States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance

Respectfully submitted.

^ 5 ^ ^^•^tf^££4X . ^ i^^^^-c^ge^^^^^^i^

Recreation District No. 3 of Livingston Pansh

Denham Springs, LA 70726 Management's Discussion and Analysis

December 31,2011

The following discussion and analysis is prepared for the Recreation District No. 3 of Livingston Parish (PARDS). The discussion and analysis is an overview of the financial activities for the fiscal year ended December 31,2011.

The purpose of the discussion and analysis is to provide the citizens of the recreation district a broad overview of the PARDS finances. The information provided should be read m conjunction with the detailed financial statements.

The Management's Discussion and Analysis (MD&A) is required by the Govemment Accounting Standards Board (GASB)

FINANOAL HIGHLIGHTS

PARDS Net Assets on December 31,2011 was $5,138,248.

The Net Assets of the Govemmental Activities for PARDS showed a decrease of ($174,198), or a 3.3% decrease.

The total general fund balance at year-end was $1,948,169. This reflects an actual decrease to the fund of $239,369 or an 11% decrease in the general fund.

At the end of 2011 Unassigned General Fund Balance of $1,928,335 represents 53 62% of total General Fund Expenditures of $3,595,987.

PARDS had an small increase in operations and maintenance ad valorem tax revenue this year This small increase is due to the slowdown of economic growth in the area. The 2011 ad valorem tax revenue totaled $2,018,542 in the general fund and represents an increase of $28,976 or 1.5% increase over the pnor year.

The debt service fund ad valorem tax revenues equaled $269,158 for the 2011 year which was a $3,665 or 1.4% increase from the previous year

Overview of Financial Statements

This discussion and analysis are intended to serve as an introduction to the basic financial statements of PARDS. PARDS' basic financial statements are comprised of three components: 1) the govemment-vnde financial statements, 2) the fund financial statements, and 3) the notes to the financial statements.

Govemment-wide financial statements are designed by GASB Statement 34 to change the way in which govemmental financial statements are presented. It now provides readers for the first time a concise "entity-wide" Statement of Net Assets and Statement of Activities, seeking to give the user of the financial statements a broad overview of the PARDS financial position and results of operations in a manner similar to a private-sector business.

The statement of net assets presents information on all of PARDS' assets and liabilities, with the difference between the two reported as net assets Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of PARDS is improving or deteriorating.

The statement of activities presents information showing how PARDS' net assets changed during the most recent fiscal year All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cashflows Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e g, uncollected taxes and accmed but unpaid interest).

The govemment - wide financial statements can be found on pages 11-12 of this report.

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. PARDS, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with financial-related legal requirements. All of the funds of PARDS are govemmental type funds.

Governmental funds are used to account for essentially the same functions reported as governmental activities in the govemment-wide financial statements However, unlike the govemment-wide financial statements, govemmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year Such information may be useful in evaluating a govemment's near-term financing requirements.

Because the focus of govemmental funds is narrower than that of the govemment-wide financiai statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the govemment-wide financial statements. By doing so, readers may better understand the long-term impact of the govemment's near-term financing decisions. Both the govemmental fimd balance sheet and the govemmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this companson between governmental funds and governmental activities.

PARDS adopts an armual appropriated budget for its general fund A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget.

The basic govemmental fund financial statements can be found on pages 13-21 of this report.

Notes to the financial statements. The notes provide additional information that is essential to a fiiU understanding of the data provided in the govemment-wide and fund financial statements. The notes to the financial statements can be found on pages 22 - 39 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

STATEMENT OF NET ASSETS

The following is a schedule of PARDS' net assets. Net assets are calculated by taking the ditference between the total assets and total liabilities. PARDS assets exceeded its liabilities at the close of 2011, by a total of $5,138,248.

2011 2010

Cash and Investments Receivables, Net of Allowances Athletic Equipment Inventory Prepaid Expenses Capital Assets, Net of Depreciation

Total Assets

Current Liabilities Bonds Payable

Total Liabilities

Net Assets: Invested in Capital Assets, Net of

Related Debt Restricted Unrestricted

Total Net Assets

$ 472,567 2,251,845

19,834 18,071

3,460,004

6,222,321

209,073 875.000

$610,484 2,253,405

19,951 15,216

3,595,557

6,494,613

182,167 1,000,000

1,084,073 1,182,167

2,585,004 602,253

1.950,991

2,595,557 531,559

2,185,330

$5,138,248 $5,312,446

The largest portion of the PARDS net assets are reflected on the following graphs.

$4,000,000

$3,000,000

$2,000,000

$1,000,000 $472,567

Cash & Cash Equivalents

Statement of Net Assets

$2,251,845

$19,834 $18,071

$3,460,004

Receivables, Net of Allowances

Athletic Equipment Inventory

Prepaid Expenses Capital Assets, Net of Depreciation

• 0.3% 7.6%

55.6%

• Cash and Investments 7.6%

O Receivables, Net of Allowances 36.2%

n Athletic Equipment Inventory . 3 %

D Capital Assets, Net of Depreciation 55.6%

• Prepaid Expenses . 3 %

n 36.2%

n 0.3%

STATEMENT OF ACTIVITIES

PARDS provides recreational facilities, activities and programs for the area citizens. Included in this are both revenue and non-revenue producing activities. PARDS operates three parks within the system. Facilities include baseball/softball fields, track, golf driving range, playgrounds, pavilions, tennis courts, a horse riding arena, two community centers, fitness and aquatics center, water park, fishing pond, walking trails and two gyms. Property taxes, rental fees and public based program fees provide most of the funding for the PARDS operation and maintenance.

Property taxes are the largest source of revenue for PARDS. PARDS collects taxes for operation and maintenance and a separate millage for debt retirement (sinking fund). The money collected for the sinking fiind can only be used to pay off the existing bonded debt. None of the sinking fiind money can be used for operation and maintenance of the park system. Other sources of revenue for PARDS include program registration fees. Fitness and Aquatics membership fees, water park admission fees, rental fees, concessions, and interest on investments.

In April 2005, the voters in Recreation District #3 passed a ten-year tax, which will secure ad valorem tax revenues thru December 31, 2015 as the prior millage expired December 31, 2005. This tax must be renewed every ten years. This tax allows the District to collect 15 mills for the operation and maintenance of the park system. In 2011 the Board decided to collect the full 15 mills. This money is put into the general fiind and is used to pay for the operation and maintenance of the park system.

The millage rate for the sinking fund varies fi-om year to year. Rates are set based upon the amount needed to pay off the long-term debt. The sinking fiind millage rate in 2011 was 2 mills. The original bond for 3 million dollars was passed in 1992 and will be repaid April 1, 2022.

Recreation Distnct No. 3 of Livingston Parish

Changes In Net Assets

Revenues: Program Revenues:

Charges for Services General Revenues:

Property Taxes - General Purposes Property Taxes - Debt Service Interest and Investment Eammgs Sponsorships Other

Total Revenues

Expenses: Personnel Program Expenses General Operations Interest on Long-Term Debt

Total Expenses

Changes in Net Assets

Net Assets - Beginning of Year

Net Assets - End of Year

2011 2010 Increase

(Decrease')

$ 1,274,215 $ 667,801 $ 606.414

3,629.141 2.990,791 638,350

(1,636,382) (294,878)

(1,808,023) (64.056^

(3.803.339^

(174.198)

5,312,446

$5,138,248

(1,123,724) (227.644)

(1,603,233)

(72.50n

(3.027.102^

(36,311)

5.348.7S7

$5,312,446

512,658 67.234

204,790 (8.445^

776.237

$ (137,887)

Change

90 81%

2,018,542 269,158

36,628 25,985 4.613

1,989,566 265,493

32,738 30,300 4.893

28,976 3,665 3,890

(4,315) (280)

1.46% 1 38%

11 88% (14.24)% (5.72)%

21.34%

45.62% 29.53% 12.77%

(11.65)%

25.64%

(379.74)%

REVENUES

The general fund property tax revenue increased $28,976 from the previous year The mcrease was a result of additional properties being added to the tax rolls in the local district. The Debt Service fund property tax revenue increased by $3,665. The mcrease was a result of additional properties being added to the tax rolls m the local distnct. There was a small mcrease $3,890 m the amount of interest on investments as the nationwide financial crisis has continued to keep interest rates low. Charges for services increased 90.81% with the opemng of the new aquatic and fitness center which accoimted for approximately $500,000 of the $606,414 increase.

EXPENSES

• Personnel expenses increased by 45% as a result of hinng a full staff for the Fitness & Aquatics Center (FAC) and Aqua PARDS facilities along with our annual budgeted step increases.

• General Operations increased $204,790 over the prior year mainly due to the following: o $67,951 increase in utilities for FAC and Aqua PARDS o $40,500 increase in insurance due to cost of liability and building and contents insurance for

the FAC and Aqua PARDS. o $27,200 mcrease in contract services as extra security and waste pick-up was needed, o $52,183 increase in maintenance due to the full operation of the FAC and Aqua PARDS

facilities, o $9,920 increase in advertising to let constituents know the new facilities were open.

BUDGETARY HIGHLIGHTS

Major differences between the original budget and the fmal amended budget of the General Fund are briefly summarized as follows:

Revenues.

Budgeted revenues were amended with a decrease of $160.110 over the original budget.

• When we accepted the Parish's bond proceeds in 2008 for the construction of our new facilities, we added annual payments to the Parish of approximately $693,000 to our budget The first part of the plan to pay for this additional expense was to roll forward our taxes m 2008, which added $377,944 to our tax collections. This still left a $315,056 deficit for the payments to the Parish The second part of the plan to pay for the additional expenditures was to be paid through our aimual growth rate in our tax collections. It was estimated that with a modest 4% growth rate by 2012, we would almost make enough to cover the additional payments. General Fund tax collections for 2011 only increased 1.46% over the 2010 collections At this point we are collecting $577,517 more than we did in 2007. This year we were able to apply dividends/interest earned on sinking fund money held by the Parish to the Parish payment to decrease the annual payment requirement to $659,000

• Projections of this year's budget were adversely affected by the late opening of the FAC and overestimated membership/program participation. Although we budgeted a positive revenue over expense of $360,500, we had an actual positive revenue over expense of $126,400.

• Although AQUA PARDS had a positive net cost center profit of $63,825, this amount was less than projected by $45,675. May and June exceeded expectations but July and August had more rain days than anticipated Labor Day weekend was completely washed out.

• The total programs offered by PARDS reflected a positive net income over expenses of $230,275.

• Kids Camp had a very positive impact, budgeted revenues exceeded the original budget by $59,525 This cost center provided a net income over expense of $204,900.

Expenditures:

Budgeted expenditures were amended with an increase of $75,862 over the original budget

• Wages were over slightly (2%) or $31,767. Most of this was due to the following. Kids Camp $ 31,875 Flag Football 2.750 Aqua PARDS 5,850

$ 40.475

• Maintenance and repairs were over slightly. We repaired the trailer at South Park for approximately $6,700.

• Contract services exceeded budget expectations by $16,700. The main reasons were caused by the added security after issues at AQUA PARDS, the Cox Communication mstallation costs and the small increase in monthly Waste Management fees.

Lofton Security $ 10,000 Cox install 3,100 Waste Management 1.200

$ 14.300

• Small tools, FAC small equipment, FAC site furnishings, contingency equipment and contingency FAC were budgeted at $185,550. We actually spent $195,850 or $10,300 over the budgeted items. We had several unexpected items that were not included in the onginal budget:

FAC Sound systems $ 4,280 Ward II water meter 7,600 Walker gas connection 3.687

$ 15-567

• As referenced in item 1 of the Income summary, the annual payments to the Parish was decreased by $34,000.

CAPITAL ASSETS

Capital assets. PARDS investment in capital assets as of December 31, 2011 amounts to $3,460,004 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system, improvements, machinery and equipment and park facilities. The total net decrease in PARDS* investment in capital assets for the current year was $135,553 or 3 7%.

Major capital asset events during the current fiscal year included the following:

• Walking Trail Lights - $17,684 • Pick Up Truck-$17,186 • Security System for the Fitness and Aquatics Center and Water Park - $14,449 • Lawn Mower for L.M. Lockhart Park - $5,409 • 72" Mower for North Park - $9,622

Additional Meter for Water Park - $7,600 Walker Gas Tie In-$3,687 Security Cart - $5,000 Sod Cutter-$3,932 Bleachers and Chairs for Water Park - $19,075 Fencing and Sidewalk at Water Park - $2,737 Dri Deck Surfacing at Water Park - $1,574 Telephone System at Fitness and Aquatics Center - $5,920 Tiki Hut at Water Park - $1.642 Bridge at Water Park - $ 11,743 Scoreboard at Fitness and Aquatics Center - $3,440 Floor Scrubber at Fitness and Aquatics Center - $4,374

•Total Capital Outlay cost totaled $135,074 and depreciation expense was ($270,627). Therefore, total net capital assets decreased by $135,553.

Additional information on PARDS' capital assets can be found in Note 5 of this report.

LONG-TERM DEBT

At the end of the current year, PARDS' had total bonded debt outstanding of $875,000. This debt is secured by an ad valorem tax on real and business personal property within the District.

Additional information on PARDS' long-term debt activity for 2011 can be found in Note 6 on page 34 of this report.

FUTURE EXPENSES

On August 4, 2009 the Board of Commissioners signed a contract to build a $6,112,000 Fitness and Aquatics Center and Water Park. This project is financed with a portion of the $7,500,000 bond the Parish issued on behalf of the Recreation District. Future bond payments are approximately $658,000 per year but do fluctuate slightly year to year The final payment is scheduled for October of 2038.

The FAC opened in March 2011. In its first year of operation the memberships have kept pace with projections. We expect the numbers of memberships to continue a gradual increase in the future.

Aqua PARDS opened in late April 2011. Revenue was a little less than expected. The rain days were more than projected and the entire labor day weekend was shut down due to Tropical Storm Lee

With one full season of Aqua PARDS and 9 months of operating the Fitness and Aquatics Center PARDS has a history to base future budgets on. The 2012 budget will more accurately reflect last years actual revenue and expenses. Other master plan projects have been placed on hold until funds are available.

REQUEST FOR INFORMATION

This financial report is designed to provide a general overview of PARDS' finances for all those with an interest in the District's finances. Questions conceming any of the information provided in this report or requests for additional financial information should be addressed to the Supenntendent, Mr. Dale Sisemore, Post Office Box 1281, Denham Spnngs, Louisiana, 70727-1281

10

GOVERNMENT-WIDE FINANCIAL STATEMENTS


STATEMENT OF NET ASSETS

DECEMBER 31, 2011 (With Comparative Totals as of December 31,2010)

ASSETS

Governmental Activities

Assets: Cash and Cash Equivalents Certificates of Deposits Ad Valorem Taxes Receivable, Net of Allowance Due From Primary Govemment Athletic Equipment and Supplies Inventory Deposits Prepaid Insurance Capital Assets:

Land Other Capital Assets, Net of Depreciation

Total Assets

LIABILITIES

Liabilities: Accounts Payable Accrued Liabilities Interest Payable Non-Current Liabilities.

Due Within One Year Due in More Than One Year

Total Liabilities

NET ASSETS

Invested in Capital Assets, Net of Related Debt Restricted for Debt Service Unrestricted

Total Net Assets

Total Liabilities and Net Assets

2011

$ 169,232 303,335

2,239,372 12,473 19.834

20 18,051

537,909 2,922,095

$6,222,321

$ 122,994 70,850 15,229

125,000 750,000

1,084,073

2,585.004 602.253

1,950,991

5,138,248

$6,222,321

2010

$ 209.944 400,540

2,229,823 23,582 19.951

20 15.196

537,909 3,057,648

$ 6,494,613

$ 113,445 51,318 17,404

125,000 875,000

1.182,167

2,595,557 531,559

2.185.330

5,312,446

$ 6,494,613

The notes to the financial statements are an integral part of this statement. 11


STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED DECEMBER 31,2011 (With Comparative Totals for the Year Ended December 31,2010)

FUNCTIONS/PROGRAMS Govemmental Activities:

Parks and Recreation Personnel Program Expenses General Operations

Debt Service:

Program Revenues Operating Capital

Charges for Grants and Grants and Expenses Services Contributions Contributions

$ 1,636,382 $ - $ - $ 294,878 1,234,059

1,808,023 ^ 40,156

Interest on Long-Temi Debt 64,056

Total Govemmental Activities $ 3.803,339 $ 1.274.215 $ - $

Taxes: Property Taxes, Levied for General Purposes Property Taxes, Levied for Debt Services

Interest and Investment Earnings Sponsorships Miscellaneous

Total General Revenues and Special Items

Change in Net Assets

Net Assets - Beginning of Year

Net Assets-End of Year

---

-

—

Total Govemmental Activities - Ne

Revenue an( ;t (Expense) i Changes

In Net Assets i 2011 2010

$ (1,636,382)$ (1,123.724) 939,181

(1,767,867)

(64,056)

(2.529.124)

2,018.542 269,158 36,628 25,985 4.613

2.354.926

(174,198)

5,312.446

$ 5,138,248 $

419,082 (1.582.158)

(72.501)

(2.359,301)

1,989.566 265,493 32.738 30,300 4,893

2.322.990

(36,311)

5,348,757

5.312.446

The notes to the financial statements are an integral part of this statement 12

FUND FINANCL\L STATEMENTS


BALANCE SHEET - GOVERNMENTAL FUNDS

DECEMBER 31.2011 (With Comparative Totals as of December 31,2010)

Debt Total General Service Govemmental Funds

Fund Fund 2011 2010 ASSETS

Cash and Cash Equivalents $ 23,698 $ 145.534 $ 169,232 $ 209,944 Certificates of Deposit Ad Valorem Taxes Receivable Allowance for Uncollectible Ad Valorem Taxes Due From Pnmary Govemment Due From General Fund Athletic Equipment and Supplies Inventory Deposits

202,243 2,036,880

(60,965) 12,473 -

19,834 20

101,092 271,586

(8.129) -

102,768 --

303,335 2,308,466

(69.094) 12,473

102,768 19,834

20

400.540 2.298.781

(68,958) 23,582 2.768

19.951 20

Total Assets $ 2,234,183 $ 612,851 $ 2.847,034 $ 2,886,628

LIABILITIES AND FUIHD BALANCES

Liabilities: Accounts Payable Accrued Payroll Payroll Taxes and Withholdings Payable Rental Security Deposits Deferred Revenue Due to Debt Service Fund

$ 112,396 5,672

52,931 V

12,247 102.768

$ 10,598 -

-

--

-

$ 122,994 i 5,672

52,931 -

12.247 102,768

> 113.445 5,706

45,436 176

-

2,768

Total Liabilities 286,014 10,598 296,612 167,531

Fund Balances: Nonspendable:

Athletic Equipment and Supplies Inventory 19,834 - 19,834 19,951 Restricted for:

Debt Service Unassigned

Total Fund Balances

Total Liabilities and Fund Balances


1.928,335

1,948,169

$ 2,234,183

602,253

602.253

$ 612.851

602,253 1,928,335

2,550,422

$ 2,847,034

531,559 2,167.587

2,719.097

$ 2,886,628


RECONCILL\TION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS

DECEMBER 31,2011 (With Comparative Totals as of December 31.2010)

Long-Term Liabilities: Bonds Payable Accrued Interest Payable

Net Assets

2011 2010

The notes to the financial statements are an integral part of this statement 14

Total Fund Balances - Governmental Funds $2,550,422 $ 2,719,097

Cost of Capital Assets 8,633,200 8,538,355

Less: Accumulated Depreciation (5,173,196) (4,942,798)

3,460,004 3,595,557

Prepaid Insurance 18,051 15,196

Elimination of Interfund Assets and Liabilities: Due from General Fund 102,768 2,768 Due to Debt Service Fund (102,768) (2,768)

(875,000) (15,229)

(890,229)

$ 5,138,248

(1,000,000) (17,404)

(1,017,404)

$ 5,312,446


STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS


Revenues: Ad Valorem Taxes Intergovemmental Interest Charges for Services:

Day Camp and Before and After School Fees

Team Registrations Driving Range Fees Recreational Center Rental Ballfield Rentals Fitness and Aquatics Center West Livingston Rental Toumament Income

Concessions: Subcontracted Vending Machines

Sponsorships Miscellaneous

Total Revenues

Expenditures: Parks and Recreation Personnel:

Salaries and Wages Commissioners Per Diem Payroll Taxes Retirement Contributions Health and Life Insurance

General Fund

$ 2,018,542 4.000

33.263

532.394 140,262 24.677 26,752 4.909

496.175 4,890

-

39.679 477

25.985 4,613

Debt Service Fund

$ 269,158 -

3,365

.

-

-

-

-

-

-

-

.

-

-

-

Total Govemmental Funds 2011

$ 2,287,700 $ 4,000

36.628

532,394 140,262 24,677 26,752 4,909

496,175 4,890

-

39,679 477

25,985 4,613

2010

2,255,059 4,000

32,738

435,941 142.436 20,460 21,109 11.000 -

3.730 8,050

20,242 833

30,300 4,893

3,356,618 272,523 3,629,141 2,990,791

1,359,599 7,700

70,970 115,347 82,766

1,359,599 7.700

70.970 115,347 82,766

927.991 7,300

39,102 87,027 62,304

1,636,382 1,636,382 1,123,724

(CONTINUED) 15


STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS (CONTINUED)


Expenditures (Continued): Program Expenses.

Team Sports Day Camp and Before and After

School Programs Fitness and Aquatics Center Toumament Expense Driving Range

General Operations: Utilities Maintenance and Repairs:

Buildings and Grounds Fitness and Aquatics Center Vehicles Tractors West Livingston

Insurance Contracted Services Professional Services Concession Expenses-

Repairs and Small Equipment Purchases Vending Machines

Telephone Janitorial Supplies and Service Truck and Tractor - Gas and Oil Sponsorship Expenses Office Supplies Uniforms Advertising

Debt General Service

Fund Fund

101,580

103,366 84,290

1,724 4,247

295,207

201,566

79.254 75.987

3.651 22.668 4,292

122,993 118,204 26.655

3.296 750

14,618 8,176

28,236 2,050 9,800 9,451

11,765

(CONTINUED) 16

Total Govemmental Funds

2011

101.580

103.366 84.290

1.724 4,247

295,207

201.566

79.254 75.987

3,651 22,668 4,292

122,993 11834 26,655

3,296 750

14.618 8,176

28,236 2,050 9,800 9,451

11,765

2010

95,555

118.079 2,712 8,155 2.868

227.369

133,615

89,617 23,804 2,046

20,194 7,680

82,491 91,012 45,307

1,764 650

11,393 8,450

22,491 8,550 7,207 4,006 1,845


STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS (CONTINUED)

FOR THE YEAR ENDED DECEMBER 31,2011 (With Comparative Totals for the Year Ended December 31, 2010)

General Operations (Continued): Dues and Subscriptions Postage and Freight Miscellaneous Assessors Pension Fund Capital Outlay Intergovernmental Transfer

General Fund

914 1,169

15,313 79,521

135,074 688,995

Debt Service Fund

-

-

-

10,598 -

-

Total Govemmental Funds 2011

914 1,169

15.313 90,119

135.074 688,995

2010

724 1,603

13,944 88,241

424,235 711,623

1,664,398 10,598 1,674,996 1,802,492

Debt Service. Principal Retirement Interest Expense Agent Fee

Total Expenditures

Excess (Deficiency) of Revenues Over (Under) Expenditures

Fund Balances - Beginning of Year

Fund Balances - End of Year

-

.

3,595,987

(239,369)

2,187.538

$ 1,948,169

125,000 65,625

606

191,231

201.829

70,694

531,559

$ 602.253

125.000 65,625

606

191,231

3,797,816

(168.675)

2,719,097

$ 2,550,422

125,000 74,375

302

199,677

3,353.262

(362,471)

3,081,568

$ 2.719,097

The notes to the financial statements are an mtegral part of this statement. 17


RECONCILIATION OF THE STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES OF

GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED DECEMBER 31.2011 (With Comparative Totals for the Year Ended December 31,2010)

2011 2010

Total Net Change in Fund Balances - Govemmental Funds $(168,675) $(362,471)

Amounts Reported for Govemmental Activities in the Statement of Activities are Different Because:

Capital outlays are reported in governmental funds as expenditures However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation exceeds capital outlays in the period:

Capital Outlays Depreciation Expense

135,074 (270,627)

424,235 (228,154)

Add accumulated depreciation on capital assets retired during the year Less cost basis of capital assets retired during the year

40,229 (40,229)

Change in prepaid insurance 2,855 2,903

The issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of the pnncipal of long-term debt consumes the current financial resources of govemmental funds. Neither transaction, however, has any effect on net assets

General Obligation Bond Principal Repayments 125,000 125,000

Interest on long-term debt in the Statement of Activities differs from the amount reported in the govemmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financiai resources. In the Statement of Activities, however, interest expense is recognized as the interest accrues, regardless of when it is due.

Change m Net Assets of Govemmental Activities

2,175 2,176

$ (174,198) $ (36,311)



STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE BUDGET (GAAP BASIS) AND ACTUAL - GENERAL FUND

FOR THE YEAR ENDED DECEMBER 31, 2011

Revenues: Ad Valorem Taxes Intergovemmental Interest Charges for Services:

Day Camp and Before and After School Fees

Team Registrations Driving Range Fees Recreational Center Rental Ballfield Rentals Fitness and Aquatics Center West Livingston Rental Toumament Income

Concessions: Subcontracted Vending Machines

Sponsorships Miscellaneous

Original Budget

$ 2,019.500 4.000

13.600

433.500 144.775 20,000 22,000 7,000

764,000 3,000 8.000

40,000 1.000

27,000 4.400

Final Budget

$ 2.027.500 4.000

15.600

531,900 140,475 24,650 25,000 4,200

503,875 4,500

-

40,000 500

26,000 3,465

Actual

$ 2,018.542 4.000

33.263

532.394 140,262 24,677 26,752 4,909

496,175 4,890

-

39.679 477

25.985 4.613

Variance With Final Budget

Favorable (Unfavorable)

$ (8,958) -

17,663

494 (213)

27 1,752

709 (7,700)

390 -

(321) (23) (15)

1,148

Total Revenues 3.511,775 3,351,665 3,356,618 4,953

Expenditures: Parks and Recreation Personnel:

Salaries and Wages Commissioners Per Diem Payroll Taxes Retirement Contributions Health and Life Insurance

1,318,675 8,400

66,354 113,400 77,000

1,349,550 7,900

68,546 112,600 85,820

1,359,599 7,700

70,970 115,347 82,766

(10,049) 200

(2.424) (2,747) 3,054

1.583,829 1,624,416 1,636,382 (11,966)

(CONTINUED) 19


STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE BUDGET (GAAP BASIS') AND ACTUAL - GENERAL FUND (CONTINUED)

FOR THE YEAR ENDED DECEMBER 31, 2011

Original Budget

Final Budget Actual



Program Expenses: Team Sports Day Camp and Before and

After School Programs Fitness and Aquatics Center Toumament Expense Driving Range

101,250 101,350 101.580 (230)

95,000 57,000 3,000 4,000

102.000 80,150

1,750 3,200

103,366 84,290

1,724 4,247

(1.366) (4.140)

26 (1.047)

260,250 288,450 295,207 (6.757)

General Operations: Utilities Maintenance and Repairs

Buildings and Grounds Fitness and Aquatics Center Vehicles Tractors West Livingston

Insurance Contracted Services Professional Services Concession Expenses:

Repairs and Small Equipment Purchases

Vending Machines Telephone Janitonal Supplies and Service Truck and Tractor - Gas and Oil Sponsorship Expenses

209,000 198.500 201,566 (3,066)

80,000 48,900

5,000 20,000 12,500

122,000 106,000 30,450

1,500 1,000

15,500 14,000 25,000 5,000

87,000 71,800 4,000

21,000 6,500

124,000 122,800 27,475

2,800 650

15,000 9,300

30,000 2.050

79.254 75.987

3,651 22,668 4,292

122,993 118,204 26,655

3,296 750

14,618 8,176

28,236 2,050

7,746 (4.187)

349 (1.668) 2,208 1,007 4,596

820

(496) (100) 382

1,124 1.764 -

(CONTINUED) 20


STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (GAAP BASIS) AND ACTUAL - GENERAL FUND (CONTINUED)

FOR THE YEAR ENDED DECEMBER 31,2011

Office Supplies Uniforms Advertising Dues and Subscriptions Postage and Freight Miscellaneous Assessors Pension Fund Capital Outlay Intergovemmental Transfer

Total Expenditures

Excess (Deficiency) of Revenues Over (Under) Expenditures

Fund Balance - Beginning of Year

Fund Balance - End of Year

Original Budget

10.000 7.000

10,750 1,500 4,000

10.750 78,400

126,150 693,000

1,637,400

3,481,479

30,296

2,187,538

$ 2,217,834

Final Budget

10,000 9,450

11,750 850

1,500 14.700 78,000

136.350 659.000

1.644.475

3.557.341

(205,676)

2,187,538

$ 1,981,862

Actual

9,800 9,451

11,765 914

1,169 15,313 79,521

135,074 688,995

1,664,398

3,595.987

(239.369)

2,187,538

$ 1,948,169



200

(1) (15) (64) 331

(613) (1,521) 1.276

(29,995)

(19,923)

(38,646)

(33,693)

.

$ (33.693)

The notes to the fmancial statements are an integral part of this statement. 21


NOTES TO THE FINANCIAL STATEMENTS

DECEMBER 31,2011

Note 1 - Organization^ Nature of Operations, and Summary of Significant Accounting Policies -

a. Organization and Nature of Operations

Recreation District No. 3 of the Parish of Livingston, State of Louisiana ("the District") was created November 27, 1973, by the Livingston Parish Council, as provided by Louisiana Revised Statute 33:4562. A board of seven commissioners who are appointed by the Livingston Parish Council governs the District. The purpose of the District is to provide playground and other facilities that promote recreation and general health and well-being. The District encompasses approximately 29% of Livingston Parish, Louisiana, and serves approximately 37,000 people. The Distnct operates three recreational facilities refeired to as North Park, South Park, and West Livingston Playground

b. Reporting Entity

The Livingston Parish Council is the financiai reporting entity for Livingston Parish, Louisiana. The Livmgston Pansh Council appoints a voting majority of the District's goveming body and can impose its will on the Distnct. Accordingly, the District has been determined to be a component umt of the Livingston Pansh Coimcil.

The accompanying financial statements present information only on the activities and funds maintained by the District and do not present information on the Livingston Parish Council, the general govemment services provided by that govemmental unit, or the other govemmental umts that comprise the financial reporting entity for Livmgston Parish, Louisiana.

The District has no entities or orgamzations that are required to be included in its financial report as defmed by Govemmental Accounting Standards Board (GASB) Statement 14

c. Basis of Statement Presentation

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles (GAAP) of the Umted States of America as applicable to govemmental units. TTie Govemmental Accounting Standards Board (GASB) is Uie accepted standard setting body for establishmg govemmental accounting and financial reporting principles.

22


NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31,2011

This financial report has been prepared in conformity with GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments.

Fund Accounting

The District uses fimd accounting to mamtam its financiai records and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid management by segregating transactions relatmg to certain govemmental functions or activities.

A fund is defined as a separate accoimting entity with a self-balancing set of accounts. Funds of the District are classified as govemmental funds. Govemmental funds account for the District's general activities, including the collection and disbursement of specific or legally restricted monies, the acquisition or constmction of general fixed assets, and the servicing of general long-term debt The govemmental funds presented in the financial statements are described as follows:

Governmental Fund Types

General Fund

The General Fund is the general operating fund of the District and accounts for all financial resources, except those required to be accounted for in other funds All general tax revenues and other receipts that are not allocated by law or contractual agreement to another fund are accounted for in this fund. General operating expenditures and the capital improvement costs that are not paid for through other funds are paid from the General Fund.

Debt Service Fund

The Debt Service Fund is used to accoimt for accumulation of resources for the payment of general long-term debt principal, mterest, and related costs.

23



DECEMBER 31, 2011

Measurement Focus/Basis of Accounting

Basic Financial Statements - Government-Wide Financial Statements (GWFS)

The Statement of Net Assets and the Statement of Activities display mformation about the reporting govemment as a whole. These statements include all the financial activities of the Distnct.

The GWFS were prepared using the economic resources measurement focus and the accmal basis of accounting. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange or exchange-like transactions are recognized when the exchange occurs (regardless of when cash is received or disbursed) Revenues, expenses, gains, losses, assets and liabilities resulting fiom nonexchange transactions are recogmzed in accordance with the requirements of GASB Statement No 33, Accounting and Financial Reportmg for Nonexchange Transactions.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment 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 fimction or segment and 2) grants and contributions that are restricted to meetmg the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

The District does not allocate indirect expenses.

Basic Financial Statements - Governmental Funds

The accounting and financial reporting treatment applied to a fund are determined by its measurement focus Govemmental Funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet Operating statements of Govemmental Fimds present mcreases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets.

Fund financial statements report detailed information about the District. The focus of govemmental fund financial statements is on major funds rather than reporting funds by type. The General Fund and the Debt Service Fund are considered major funds of the District

The modified accrual basis of accounting is used by Govemmental Funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). Measurable means the amount of

24


NOTES TO THE FINANCL\L STATEMENTS (CONTINUED)

DECEMBER 31,2011

the transaction can be determined and available means collectible within the current period or soon enough thereafter (generally 60 days) to be used to pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred. The Govemmental Funds use the following practices in recording revenues and expenditures:

Revenues

Ad valorem taxes are recorded in the year the taxes are due and payable. Ad valorem 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 generally collected in December, January, and Febmary of the fiscal year.

Interest income is composed of interest from interest-bearing demand deposits, fiom time deposits and fi'om ad valorem taxes. Interest earned on idle cash, cash equivalents, and investments is recorded when the income is both measurable and available.

Intergovemmental revenues are recorded when the income is both measurable and available.

Grant revenues are recorded when the District is entitled to reimbursement of expenditures under the terms of the grant.

Charges for services are recorded as revenue when the fees are collected because they are usually paid at the time the service is rendered.

Other revenues, such as; concession sales, sponsorships, donations, refunds, and miscellaneous revenues are recorded as revenue when the money is received because they are generally not measurable until actually received

Expenditures

Prmcipal and interest on general long-term obligations are recogmzed when due. All other expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred

Other Financing Sources (Uses)

Other financing sources (uses) include the proceeds from the sale of fixed assets and transfers between funds that are not expected to be repaid. Proceeds from the sale of fixed assets are recorded when received and transfers are recorded when the transfer is made. There were no transfers or proceeds from sale of assets in the current year.

25



DECEMBER 31, 2011

f. Budgetary Policy and Accounting

The District prepares its annual operating budget on the modified accmal basis of accounting, which is consistent with generally accepted accounting pnnciples (GAAP). The District's budget process also has to follow the requirements of state law as set forth by the Louisiana Local Govemment Budget Act.

The following procedures are used in establishing the budgetary data reflected in the financial statements:

• Before the second Monday of November, the District prepares a budget for the next fiscal year that begins January 1. The operating budget includes proposed expenditures and the means of financing them.

• The board members discuss the proposed budget at the regular meeting of the Board of Commissioners on the second Monday of November and set the date for the special public hearmg on the proposed budget.

• The public hearing to review and discuss the budget is held immediately before the regular meeting of the Board of Commissioners on the second Monday in December. The public hearing for the District's 2011 original budget was held on December 13, 2010.

• The budget is adopted at the Board of Commissioners regular monthly meeting immediately following the public hearing.

Once the budget is approved, it can be amended by approval of a majority of the Board of Commissioners. The process of presenting and approving budget amendments follows a procedure similar to the one used to adopt the initial budget. There was one amendment made to the budget that was initially adopted for 2011. The amendment was approved at a regular meeting of the District's Board of Commissioners on December 12,2011.

All budget appropriations lapse at year-end

g. Encumbrances

Encumbrances outstanding at year end do not represent GAAP expenditures or liabilities but represent budgetary accounting controls. The Govemmental Fund's budget is maintained on the modified accmal basis of accounting except that budgetary basis expenditures include purchase orders and contracts (encumbrances) issued for goods or services not received at year end.

The actual results of operations are presented in accordance with GAAP and the Commission's accounting policies do not recognize encumbrances as expenditures until the period in which the goods or services are actually received and a liability is incurred At December 31,2011, the District had no outstanding encumbrances

26



DECEMBER 31,2011

Inventories

Inventories are valued by management at cost and estimated cost. Inventories consist primanly of athletic equipment and uniforms. Inventories at year-end are offset by an equal amount of nonspendable fund balance

Cash and Cash Equivalents

Cash includes petty cash, demand deposits, and interest-bearing demand deposits. Cash equivalents include amounts in time deposits and those investments with original maturities of three months or less. Under state law, the District may deposit funds in demand deposits, interest-bearing demand deposits, or time deposits witfi state banks organized under Louisiana law or any other state of the Umted States, or under the laws of the United States. Cash and cash equivalents are presented at cost in the District's balance sheet.

Investments

Investments are limited by Louisiana Revised Statute (R.S.) 33.2955 and the District's investment policy. If the original maturities of time deposits exceed three months, they are classified as investments; however, if the original maturities are three months or less, they are classified as cash equivalents.

GASB Statement 31 requires the Distnct to report its investments at fair value in the balance sheet except for investments in non-participating interest-earning contracts, such as non-negotiable certificates of deposit with redemption terms that do not consider market rates. This type of mvestment is reported using a cost-based measure, provided that the fair value of the contract is not significantly affected by the impairment of the credit standing of the issuer or other factors.

Receivables and Payables

All trade and property tax receivables are shown net of an allowance for uncollectibles. Trade accounts receivable based on agings and estimated charge-off percentages compnse the trade accoimts receivable allowance for uncollectibles. The property tax receivable allowance is equal to three percent of the current year property tax levy.

Property taxes are levied in September or October each year on property values assessed as of the same date. Billed taxes become delinquent on January 1 of the following year, at which time the applicable property is subject to lien, and penalties and interest are assessed.

27


NOTES TO THE FINANCL\L STATEMENTS (CONTINUED)

DECEMBER 31,2011

1. Prepaid Items

Payments for general insurance reflect costs that are applicable to future periods and are recorded as prepaid in the govemment-wide financial statements. In the fund financial statements, die entire payment is treated as a current expenditure even though future periods benefit from the advance payment

m. Capital Assets and Depreciation

Capital assets include any land, buildings, major park improvements, equipment, and vehicles owned by the District. All capital assets are valued at historical cost, except for donated assets, which are valued at estimated fair market value at the date of donation. At December 31, 2011 the District had no donated assets. In cases where assets are constructed with borrowed money the interest expense paid on the related debt is capitalized as part of the cost of the asset.

It is the District's policy to capitalize purchases of moveable property costing at least $1,000 and purchases of real property and major park improvements costing at least $1,500.

All buildings, major park improvements, equipment and vehicles are depreciated usmg the straight line method of depreciation over the following estimated useful lives:

Assets Years

Buildings 40 Park Improvements 10-30 Equipment 5-25 Vehicles 5

n. Vacation and Sick Leave

Upon completion of one year of service, all full time employees eam from 10 to 20 days of vacation leave each year depending upon the number of years employed. All full-time employees eam from 5 to 10 days of sick leave each year depending upon when they are hired during the year and the number of years employed. Vacation cannot be carried over from year to year or taken in advance. Sick leave can be accumulated up to a maximum of 100 days. Unused vacation or sick leave is not paid to employees when they terminate. Accordmgly, the financial statements do not include any liability for compensated absences. The cost of current leave privileges is recognized as a current year expenditure in the General Fund when the leave is actually used

28



DECEMBER 31,2011

Transfers and Interfund Loans

Transfers are advances between funds that are not expected to be repaid. In those cases where repayment is expected, the advances are accounted for through the various "due from" and "due to'* accounts in the fund financiai statements. The "due from" and "due to" accounts are eliminated in the govemment-wide financial statements.

Long-Term Obligations

In the govemment-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable govemmental activities statement of net assets.

In the fiind financial statements, govemmental fimd types recognize the face amoimt of debt issued as other financing sources. Premiums received on debt issuances are reported as other financing 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

Use of Estimates

The preparation of financiai statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates.

Summary Financial Information for 2010 and Reclassification

The financial statements include certain pnor year summanzed information in total. Such information does not include sufficient details to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Distnct's financiai statements for the year ended December 31, 2010, from which the summarized information was derived.

Certain items in the 2010 columns have been reclassified to conform to the presentation in the current year financial statements Such reclassifications had no effect on previous reported excess of revenues and other sources over expenditures and other uses or change in net assets.

s. Fund Equity

The District implemented the provisions of Govemmental Accounting Standards Board Statement No. 54 which redefined how fimd balances are presented in fiind financial statements, effective January 1, 2011 In the govemmental fund financial statements, fund balances are classified as follows:

29



DECEMBER 31,2011

Nonspendable - Amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact.

Restricted - Amounts that can be spent only for specific purposes because of the state or federal laws, or extemally imposed conditions by grantors or creditors.

Committed - Amounts that can only be used for specific purposes determined by a formal action of the District. These amounts cannot be used for any other purpose unless the District removes or changes the specified use by taking the same type of action that was employed when the funds were imtially committed.

Assigned - Amounts that are designated as conunitted by the District but are not spendable until a budget resolution is passed.

Unassigned - All amounts not included in other spendable classifications, positive amounts are only in the general fund. The District has not adopted a policy to maintain the general fund's unassigned fund balance above a certain minimum balance.

The details of the fimd balances are included m the Balance Sheet - Govemmental Funds (Statement C). Restricted fimds are used first as appropriate. Assigned Funds are reduced to the extent that expenditure authority has been budgeted by the Distiict or the Assignment has been changed by the District. Decreases to fimd balance first reduce Unassigned Fund balance; in the event that Unassigned becomes zero, then Assigned and Committed Fund Balances are used in that order.

Note 2 - Cash, Cash Equivalents and Investments -

For reporting purposes, cash and cash equivalents include cash, demand deposits, and time certificates of deposit with original maturities of 90 days or less when purchased. If the original maturities of time certificates of deposits exceed three months, they are classified as investments. Under state law the District may deposit fimds within a fiscal agent bank organized imder the laws of the State of Louisiana, any other state in the imion, or imder the laws of the United States. Further, the District may invest in time deposits or certificates of deposit of state banks organized under Louisiana law and national banks having pnncipal offices in Louisiana.

As confirmed by the fiscal agents, the District had cash and certificates of deposit with maturities less than 90 days totaling $220,080 with a carrying amount of $169,232 and certificates of deposit with mataunties over 90 days with a confirmed balance and a carrying amount totaling $303,335 at December 31, 2011. Cash, cash equivalents and certificates of deposits are stated at cost, which approximates market. These deposits must be secured under state law by federal deposit insurance or the pledge of secunties owned by the bank. The market value of the pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the bank. The following is a summary of cash and cash equivalents and certificates of deposit with maturities less than 90 days, and certificates of deposit over 90 days at December 31, 2011:

30



DECEMBER 31,2011

Deposits in Bank Accoimts

Deposits in Bank Accounts per Balance Sheet

Bank Balances (Category 3 Only): a. Uninsured and Uncollateralized b. Uninsured and Collateralized

with Securities Held by the Pledging Institution

c. Uninsured and Collateralized with Securities Held by the Pledgmg Institution's Trust Department or Agent, but not in the Entities Name

Total Category 3 Bank Balances

Total Bank Balances (Regardless of Category)

Cash

$ 169,232

$ -

Certificates of Deposit

$ 303,335

$

Total

$ 472,567

$

54,121 127J36 181,857

$ 54,121 $ 127,736 $ 181,857

$ 220,080 $ 303,335 $ 523,415

Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure, the District's deposits may not be returned to it. As of December 31, 2011, $181,857 of the District's bank balance of $523,415 was exposed to custodial credit risk because it was uninsured by FDIC and collateralized with securities held by the pledging institution's tmst department or agent, but not in the entity's name.

Note 3 - Ad Valorem Taxes -

On April 23, 2005, the voters, who live within the boundaries of Recreation District No. 3 of Livingston Parish, Louisiana, passed a 15 mill ($15 per $1,000 of assessed valuation) ad valorem tax to provide fimds for the operation and maintenance of the public parks located within the District. The tax is effective for a ten year period (2006 - 2015). In addition to this tax, the District can assess a millage (tax) to provide sufficient fiinds to pay for the principal and interest on a public improvement bond issue that was approved by the voters who lived in the Distiict during 1991. This millage will expire in 2021.

The ad valorem taxes are levied each November 15 on the taxable assessed value listed as of the prior January 1 for all real and business personal property located within the boundaries of Recreation District No. 3. Taxable assessed value represents the appraised value of the property less exemptions allowed by law The Livingston Parish Distnct penodically determines the appraised values.

31


NOTES TO THE FINANCLVL STATEMENTS (CONTINUED)

DECEMBER 31,2011

As of January 1, 2011, the assessed value of the property located within Recreation District No. 3 of Livingston Parish, Louisiana, was $137,671,330. For 2011, the District elected to assess 15 mills to finance the maintenance and operations of the parks. In addition, management determined that a 2 mill assessment was needed to satisfy the payment of principal and interest on the public improvement bonds. Accordingly, a total of 17 mills was assessed for 2011.

Taxes are due on November 15, the levy date, and they become delinquent on the following January 1. The taxes are generally collected in December of the current year and January through March of the following year. Dunng late Apnl or May, of the year following the year the tax was levied, the Sheriffs office sends out delinquent notices to the property owners. Soon after the Sheriff has mailed the delinquent notices, he will publish them in the newspaper. After a second publication in the newspaper and at least 30 days from the date of the first publication, the property is advertised for auction. The auction usually takes place in June or July. Properties sold at auction have liens placed on them by their buyers The Pansh will put a lien on any properties not sold at the auction.

Delinquent tax collections are prorated between maintenance and debt service based on the rates adopted by the District for the year the particular levy was assessed Management has based the allowances for uncollectible ad valorem taxes for the General and Debt Service Funds using histoncal experience m collecting the taxes and adjusting for allowances of prior years not used by the end of the current year. Historically, approximately 97% of the taxes have been collected.

Total taxes assessed and taxes receivable at December 31,2011, are as follows:

Revenues:

2011 Ad Valorem Tax Assessed Add (Less): Current Allowance for

Uncollectible Taxes

Net Ad Valorem Tax Revenue

Receivable:

2011 Property Tax Assessed Less: Current Year Taxes Collected

in 2011

General Operations 15 00 Mills

$ 2,065,070

(46,528)

$2,018,542

$2,065,070

(32,905)

Debt Service

2.00 Mills

$ 275,343

(6.185)

$ 269,158

$ 275.343

(4.385)

Total

$2,340,413

(52,713)

$ 2,287,700

$2,340,413

(37,290)

Taxes Receivable - Cun:ent Year 2,032,165 270,958 2,303,123

(CONTINUED)

32



DECEMBER 31,2011

Prior Years Tax Receivables at December 31,2010

Less: Prior Years Tax Collected in 2011 Less: Prior Years Receivable Written

Off Against Allowance

Taxes Receivable - Prior Years

General Operations 15.00 Mills

2,028,345 (1,977,222)

(46,408)

4,715

Total Property Taxes Receivable at December 31,2011 2,036,880

Less: Allowance for Uncollectible Accounts (60,965')

Net Property Tax Receivable at December 31,2011 $ 1,975,915

Debt Service

2.00 Mills

270,436 (263,639)

(6,169)

628

271,586 f8.129^

$ 263,457

Total

2,298,781 (2.240.861)

(52.577)

5.343

2.308.466 (69.0941

$ 2.239.372

Note 4 - Interfund Receivables and Payables -

From time to time, the District may pay for certam fees with general funds rather than with debt service funds as a matter of convenience. The fund will then reimburse the other fund for amoimts advanced on its behalf. As a result, the manner in which cash is spent and received creates short-term interfund loans, A summary of these interfund loans at year-end is as follows:

Due to Due from Debt Service General

Fund Fund

General Fund $102,768 $ -Debt Service Fund - 102,768

Total $102,768 $102,768

33


NOTES TO THE FINANCL^LL STATEMENTS (CONTINUED)

DECEMBER 31,2011

Note 5 - Changes in Capital Assets -

A summary of changes in capital assets follows

Govemmental Activities*

Capital Assets not being Depreciated: Land

Total Capital Assets not being Depreciated

Capital Assets being Depreciated* Buildings Park Improvements Vehicles Equipment and Furniture

Total Capital Assets being Depreciated

Less: Accumulated Depreciation for. Buildings Park Improvements Vehicles Equipment and Furniture

Total Accumulated Depreciation

Total Capital Assets being Depreciated, Net

Total Govemmental Activities Capital Assets. Net

Balance December 31,2010

$ 537.909

537.909

2,763,469 4,040,459

109,455 1,087,063

8,000,446

1,401.896 2.911,023

97,982 531,897.

4,942,798

3,057,648

$3,595,557

Additions ,

$ -

-

31,709 17,186 86,17?

135.074

69.087 87,979 10.097

103.464

270,627

(135.553)

$ (135.553)

Deletions

$ -

-

(24,772) (15.457)

(40,229)

(24,772) (15.457)

(40.229)

_

$ -

Balance December 31.2011

$ 537,909

537.909

2,763,469 4,072.168

101,869 1.157.785

8,095,291

1,470.983 2,999,002

83,307 619,904

5,173.196

2,922,095

$3,460,004

Depreciation expense of $270,627 was charged to the General Operations function in the Statement of Activities.

34



DECEMBER 31,2011

Note 6 - Changes in General Long-Term Debt -

The following is a summary of the changes in general long-term debt of the District for the year ended December 31, 2011:

Long-temi debt at December 31,2010 $1,000,000 Additions Repayments (125.000)

Long-term debt payable at December 31, 2011 $ 875,000

The long-term debt at year-end, consists of the luipaid principal of public improvement bonds that were originally issued Apnl 1,1992. At year-end, there were outstanding interest payments totaling $275,625. The remaining bonds will mature from 2012 to 2022 at interest rates ranging firom 6.70 to 7.35 percent per annum. The bonds are secured by an ad valorem tax on real and business personal property within Recreation District No. 3 of Livingston Parish.

The annual requirements to amortize the remaining bonds outstanding are as follows:

Year Ending

2012 2013 2014 2015 2016 2017-2021 2022

Yearlv Pavments Principal

$ 125,000 100,000 100,000 100,000 100,000 300,000

50.000

$ 875,000

Interest

$ 56,875 49,000 42,000 35.000 28.000 63.000

1,750

$ 275,625

Total

$ 181,875 149,000 142,000 135,000 128,000 363,000

51,750

$1,150,625

Note 7 - Retirement Plans -

Plan Description

Twenty six of the District's employees are members of the Parochial Employees' Retirement System of Louisiana (System), a cost-sharing, multiple-employer defined benefit pension plan administered by a separate board of trustees. The System is composed of two distmct plans. Plan A and Plan B, with separate assets and benefit provisions The employees of the District who are eligible to participate are members of Plan A.

All permanent parish govemment employees (except those employed by Orleans, LaFourche, and East Baton Rouge Parishes) workmg at least 28 hours per week, who are paid wholly or in part from parish funds, and certain elected parish officials are eligible to become members of the System.

35



DECEMBER 31.2011

Under Plan A, members who retire at or after age 65 with at least 7 years of creditable service, at or after age 60 with at least 10 years of creditable service, at or after age 55 with at least 25 years of creditable service, or at any age with at least 30 years of creditable service are entitled to a retirement benefit, payable monthly for life, equal to 3 percent of the member's final-average compensation (defined as the average of the highest consecutive 36 months of compensation) multiplied by his years of creditable service. However, for those employees who were members of the supplemental plan only before January 1,1980, the benefit is equal to one percent of final average compensation plus two dollars per month for each year of service credited before January 1, 1980, and three percent of final compensation for each year of service credited after January 1,1980. The retirement benefit may not exceed the greater of 100% of a member's final salary (last 12 month's) or his final average compensation. Employees who terminate with at least the amount of creditable service stated above and do not withdraw their employee contributions may retire at the ages specified above and receive the benefit accmed to their date of termination. The System also provides death and disability benefits Benefits are established or amended by statutory process.

The System issues an annual, publicly available, financial report that includes financiai statements and required supplementary information for the System. That report may be obtained by wnting to the Parochial Employees' Retirement System, Post Office Box 14619, Baton Rouge, Louisiana 70898-4619, or by calling (225) 928-1361.

Member and Employer Contributions

Under Plan A, members are required by state statute to contribute 9.5 percent of their armual covered compensation. The Distnct's contributions are acmarially determined every fiscal year according to statutory process. The District's contribution rate for the year 2011 was 15.75 percent of its eligible members' total armual payroll of $732,591. Accordingly, the District's required contribution to the System under Plan A for its eligible employees for the year ended December 31, 2011 was $115,347.

Taxing Bodies Contributions

In addition to the contributions made by the members and their employers, each parish Sheriff and ex-officio tax collector in Louisiana remits one-fourth of one percent of the aggregate amount of tax shown to be collectible by the tax rolls of their parish (except Orleans, LaFourche, and East Baton Rouge Parishes) The contributions by the taxing bodies are divided between Plan A and Plan B based proportionately on the salaries of the active members of each plan for the previous fiscal year. The Livingston Parish Sheriff deducts the District's share of these contributions before he remits the ad valorem tax revenues to which the District is entitled. For the year ended December 31,2011, $90,119 of ad valorem tax revenues were withheld to pay for the Distnct's share of the taxing bodies' contributions.

36



DECEMBER 31,2011

Note 8 - Per Diem Paid Board Members -

Each member of the Board of Commissioners is eligible to receive a per diem allowance of $100 for attending each regular or special meeting of the board, not to exceed 24 meetings in one calendar year. Per diems paid to the board members for this year were as follows:

Commissioner

Van Foster, Jr. Rhonda Pratt Guy Smith J. Dyson-Norris Arthur Perkins Jimmy Purvis John Wascom

Total

Numbei :of Meetings

12 12 11 9

10 13 10

Amount Received

$ 1,200 1,200 1,100

900 1,000 1,300 1,000

$ 7,700

Note 9 - Income Taxes -

The District is exempt from all Federal and Louisiana income taxes

Note 10 - Risk Management -

The District is exposed to various risks of loss related to torts; thefls of, damage to, and destmction of assets; errors and omission; injunes to employees; and natural disasters. The District has purchased commercial insurance to cover or reduce the risk of loss that might arise should one of these incidents occur. There have been no significant reductions in coverage from the prior year. No settlements were made during the current fiscal year that exceeded the District's insurance coverage.

The District's management has not purchased commercial insurance or made provision to cover or reduce the risk of loss, as a result of business interruption and certain acts of God, like flood or earthquakes.

The District also does not carry general liability insurance because it has been unable to obtain coverage at a cost it considers to be economically justifiable. Accordingly, management has opted to self-insure for this type of risk The District has not had to settle or pay any claims for incidents where it was uninsured.

37



DECEMBER 31,2011

Note 11 - Committment

On July 30, 2008, the Board of Commissioners of the District 3 voted to adopt a Resolution requesting for the Parish of Livingston to proceed with a bond issue not to exceed $9,000,000 through the Louisiana Local Govemment Environmental Facilities and Community Development Authority in order to provide funds for the District to acquire, design, construct, and develop public parks, playgrounds, and recreational properties and facilities within the District. The Board of Commissioners also voted to authorize entering into a Local Service Agreement between the Pansh of Livingston and the Distnct, in accordance with the provisions of Louisiana Revised Statutes 33:1321 - 1337, which provides for financmg agreements between political subdivisions. On September 23,2008 the Board voted to authorize the sale of $8,635,000 in bonds for the facility expansion and other costs related to the issuance of the debt. These bonds were issued on October 1, 2008 with scheduled maturities through 2038. The bonds were issued in the name of the Livingston Parish Council and are recorded on the books of the Livingston Parish Coimcil. The Livingston Parish Council will admimster the constmction funds as they are spent on the constmction of the new recreational facilities According to the provisions of the Local Service Agreement, the Parish agreed to deposit the proceeds of the bonds into a constiiiction account to enable the District to finance the Projects, fund the reserve fund for the bonds and pay the cost of issuance of the bonds while the District agreed to pay the payment obligations to the Tmstee, on behalf of the Parish, in accordance with the debt covenant requirements of the loan from current ad valorem tax revenues.

Following is a schedule that lists the various projects and the projected costs of each along with amounts spent and the financing costs of the bonds:

Project Name

Aquatics and Fitness Complex

3 Walking Trails

3 Tennis and 2 Basketball Courts

Engineering Fees

Contingency, Fees, and Other Costs

Projected Use of

Bond Proceeds

$ 6.164,641

638.107

256.131

441,121

-

Additional Funds

Contnbuted -

Interest Earnings

And Distnct

Contributions

$ 105.284

-

-

2,611

-

Projected Costs

S 6;269.925

638,107

256.131

443.732

-

Spent-to-Date

$ 6.269.925

638.107

256,131

443.732

-

Remaining

Commitment

$ --

-

-

-

7,500.000 107.895 7,607,895 7,607,895

(CONTINUED) 38



DECEMBER 31,2011

Proiect Name

Bond Financing Costs.

Onginal Issue Discount

Underwnters Discount

Cost of Issuance

Debt Service Reserve Fund

Projected Use of

Bond Proceeds

102,316

120.890

218.599

441.805

693.195

$ 8,635.000

Additional Funds

Contributed -

Interest Earnings

And District

Contributions

-

--

-

-

$ 107,895

Projected Costs

S

102,316

120,890

218,599

441.805

693,195

8,742,895

Spent-to-Date

102,316

120.890

218.599

441,805

693,195

$ 8,742.895

Remaining

Commitment

-

--

-

-

$ -

The above $107,895 in additional funds contributed includes accumulated interest on the bond proceeds of $90,468 and net contributions by the District of $17,427.

Asof December 31, 2011, a total of $2,188,145 has been paid by the Distiict to the Livingston Parish Council for sinking fund payments. A total of $19,961,290 is anticipated to be paid to the tmstee on behalf of the Livingston Parish Council by the District by the end of 2038 as provided by the Local Service Agreement. As of December 31, 2011, a total of $17,773,145 is outstanding and due to the Livingston Parish Council.

The annual requirements of principal and interest and for sinking fund payments from operations per the Local Service Agreement are as follows:

39



Ending

2008 2009 2010 2011 2012 2013 2014-2018 2019-2023 2024-2028 2029-2033 2034-2038

Less:

DECEMBER 31,;

Principal

$ -90,000

105,000 115,000 120,000 125,000 760,000

1,030,000 1,445,000 2,015,000 2.830.000

$8,635,000

Contribution to Debt Service Reserve Fund

Total Commitment Due

2011 Payments to Livingston 2010 Payments 2009 Payments 2008 Payable tc

to Livingston to Livingston

Interest

$ 542,555 584,600 578,195 571,180 563,860

2,693,640 2,421,455 2,009,500 1,432,900

621,600

$12,019,485

Parish Council Parish Council Parish Council

2011

Total

$ 632,555 689,600 693,195 691,180 688,860

3,453,640 3,451,455 3,454,500 3,447,900 3,451,600

$20,654,485

) Livingston Pansh Council paid in 2009

Total Remaining Commitment

Annual Sinking Fund Reauirements

$ 146.255 658,700 690,499 692,691 690,600 689,454

3,453,300 3,451,335 3,454,439 3,447,637 3,279,575

20,654,485

(693,195)

19,961,290

(692,691) (690,499) (658,700) (146.255)

$17,773,145

40

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Hannis T. Bourgeois, LLP Cerhhed Public Accountants

2322 Tremont Drive • Baton Rouge, LA 70809 178 Del Orleans Avenue, Suite C • Denham Springs, LA 70726

Phone 225 928 4770 • Fax 225 926 0945

www htbcpa com

June 12,2012

To the Board of Commissioners Recreation District No. 3 of Livingston Parish

We have audited the financial statements of the govemmental activities and each major fund of the Recreation District No. 3 of Livingston Parish, "the District" (a component unit of the Livingston Parish Council), as of and for the year ended December 31, 2011, which collectively comprise the District's basic financial statements and have issued our report thereon dated June 12, 2012. 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 of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the District'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 of the District's intemal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Entity's intemal control over financial reporting.

A deficiency in internal control 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 and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in uitemal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of intemal control 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 financiai reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in intemal control over financial reporting that we consider to be material weaknesses, as defined above.

41

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the District's fmancial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which cotild 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. I

This report is intended solely for the information of the Board of Commissioners, the District's management, and the Louisiana Legislative Auditor, and is not intended to be, and should not bej used by anyone other than these specific parties. However, under Louisiana Revised Statue 24:513, this report is distributed by the Legislative Auditor as a public document.

Respectfully submitted.

I 42


SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS

FOR THE YEAR ENDED DECEMBER 31,2011

None

43

Documents

Livingston Parish Recreation District No. 3app1.lla.state.la.us/PublicReports.nsf/AE1BD12BE... · tax revenue totaled $2,018,542 in the general fund and represents an increase of