Town of Slaughter - app1.lla.state.la.usapp1.lla.state.la.us/PublicReports.nsf/16EB5C5CE... · INTERNAL CONTROL, COMPLIANCE AND OTHER MATTERS Report on Internal Control over Financial

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TOWN OF SLAUGHTER, LOUISIANA

Financial Report

YearHnded June 30, 2011

Under provisions cf s:ate iaw. ths report is a pubiic document. Acopy o* the repoil has teen submitted to the entity and otiier app-'opriate pubiic officiais. Tfne repoil is avaiiabie for pubiic insoection at tne Baton Rouge office o 't.ne I.ecjisiativeAuditor and. where appropriate, at the office of the parish cleric of court.

Reiease Date NOV 0 2 2011

TABLE OF CONTENTS

Page

Independent Auditors' Report 1 - 2

BASIC FINANCIAL STATEMENTS

GOVERNAiENT-WJDE FINANCIAL STATEMENTS (GWFS) Statement of net assets 5

Statement of acti\'ities 6

FUND FINANCIAL STATEMENTS (FFS)

Balance sheet - governmental funds 9

Reconciliation ofthe governmenial funds balance sheet to the statement of net assets 10

Statement of revenues, expenditures, and changes in fund balances-governmental funds 11

Reconciliation ofthe statement of revenues, expenditures, and changes in fund balances of governmental funds to the statement of activities 12

Combining statement of net assets - proprieian' funds 13

Combining statement of revenues, expenses, and changes in net assets - proprietar\- funds 14

Combining statement of cash flows - proprietar>' funds 15

Notes to basic llnancial statements 16-36

REQUIRED SUPPLEMENTARY fKFORMATION

General Fund: Budgetary comparison schedule 38 Budgetar>' comparison schedule - revenues 39 Budgetar\' comparison schedule - expenditures 40-42

Street and Sidewalk Sales Tax Special Revenue Fund - budgetarv' comparison schedule 43

OTIIER SUPPLEMENTARY INFORMATION

Schedule of number of utility customers (unaudited) 45

INTERNAL CONTROL, COMPLIANCE AND OTHER MATTERS

Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance

with Government Auditing Standards 47-48 Summar\' schedule of current and prior year audit findings and corrective action plan 49

C BufTonKolder, CPfi-: RuEsel' F. Cha-npagnfr, CPA' V'Ctar R Siaven CPA* F. Iroy Courviile, CP.A" Gerald A Trubodeaux, Jr..C?A* RosePi S Carter CPA' .Arthur R Mixon, C 'A*

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

TynesE Mixon x.. CrA Alien J. LaBry CPA AlDe.T R L.eg9r, CFAPFS CSA' Penny Angelle Scruggins C='A Christine L. Cousin, CPA Ma-y T Tiibodeaux. C='A Ma-shall A' Guidry CPA A:an M. Taylor, CPA Jarnes R Roy. CPA Ro&er, J Metz CPA Kelly M Doucet. C='A Chery I. Bart.ey, CPA Mandy E. Self CPA Pa'jIL Deicambre jr. CPA Wanda = Arcemen".. CPA. CVA Kristin B ;)aLiza; C=A Ri.-iiard R. Anderson Sr. CPA Carolyn C Anderson. CPA

Retired Con'ad 0 Cnapman C .A" 2006 Harry J Clostic, C=A 2007

[NDEPENDENT AUDITORS' REPOR'

OFFICES

153 Soutri Beadle Ra La'ayeite, '..A 70503 =none (337)232-iK1 rax :33V;• 232-6660

113 Easi Bridge St Ereaux Bnoge, LA 705'.] Phone (337) 332-4020 Fax (33?) 332-2857

123^ David Dr. Ste?03 Uorga-i City. LA 70360 Pnone (985; 354-2020 =ax(Gi£5) 364-3020

dOe West Coiion Stree: ViI.ePlarle, LA 70566 Phone (337;i 353-/732 Fa* !337i 365-304S

532 A'est 5;whAvenje ODe.'lin. _A 70S55 Phone (337)639-473^ ["ax (3371 639-4566

450 Eas Main Stree! New iDeria. I.A 70560

'•^hone;3371357-920^ r ax •:337;. 367-9205

200 South Wain Street Abbeville. U^ 705iO

Phone (237)893-7544 FaM337) 893-7946

•'0'.3 Main Stree*. FranKiin, LA 70535

Phone 1337)528-0272 Fax(33nS28-029D

'33 Easl Waadil St. Ma-ksville LA. 7-351

Phone i3lS)?53-9252 .= ax.315)253-3581

62' r/ain Sfeet îneviie. LA 71360

Plione •;3l8)442-'i421 Fax!318)442-9535

h roteBWona AcixumtmaCorati'alcr

WES Si 1 \-WWW KCSRCPAS COM

Honorable Bobbie Bourgeois, Mayor and Members ofthe Board of Aldennen

Town of Slauchter. Louisiana

We have audited the accompanying financial statements ofthe governmental activities, the business-t\pe activities, and each major fund ofthe Town of Slaughter, Louisiana, as of and for ihe year ended June 30, 2011, which collectively comprise the Town's basic llnancial statements as listed in the table of contents. These financial statements are the responsibilit}" oi'the Town of Slaughter, Louisiana's management. Our responsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit Includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles 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 opinions.

In our opinion, the financial statements referred to above present fairly^ in all material respects, the respective financial position ofthe governmental activities, the business-t>'pe activities, and each major fund ofthe Town of Slaughter, Louisiana, as of June 30, 2011, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformits with accounting principles generally accepted in the United States of .America.

In accordance with Govermnent Audhing Standards, we have also issued our report dated September 22, 2011, on our consideration ofthe Town oi'Slaughter, Louisiana's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The puqôse of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

Member of AMERICAN INS1-TUTE0F CERlll-'lED PUBLIC ACCOUNTANTS

Member of: 50CIPTV0F LOUISIANA

CERl IFiED PUBLIC ACCOUMAUTS

Accounting principles generally accepted in the United Stales of America require that the budgetaiT comparison infonnation on pages 38 through 43 be presented to supplement the basic financial statements. Such information, although not a part ofthe basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essentia! part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The prior year comparative information on the required supplementary information has been derived from the Town's 2010 llnancial statements, which was subjected to the auditing procedures applied in the audit ofthe basic financial statements and, in our opinion was fairiy presented in all material respects in relation to the basic financial statements taken as a whole.

The Town of Slaughter, Louisiana has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Slaughter, Louisiana's basic financial statements. The other supplementar)' information on page 45 is presented for purposes of additional analysis and is not a required part ofthe basic financial statements. Such infomiation is marked unaudited and we express no opinion on it. The prior year comparative information on the other supp]cment.ar\' information has been derived from the Town of Slaughter, Louisiana's 2010 financial statements, is marked unaudited, and we express no opinion on it.

Koldety Champagne, Slaven & Company, LLC Certified Pubiic Accountants

Lafayette, Louisiana September 22, 2011

BASTC FEN ANCL4L STATEMENTS

GOVERNMENT-WJDE FINANCIAL STATEMENTS (GWFS)

TOWN OF SLAUGH'fER, LOUISIANA

Statement of Net Assets June 30,2011

ASSETS Current assets:

Cash and interest-bearing deposits Investments Receivables, net

Total current assets

Governmental Business-Type Activities Activities Total

$ 390.509

3.709

44,328

438,546

$ 34,322

34,095

82,014

150,431

$ 424,831

37,804

126,342

588,977

Noncurrent assets; Restricted assets;

Cash and interest-bearing deposits Capital assets, nel Unamortized bond issuance costs

Total noncun*ent assets

Total assets

-

853.189 -

853,189

1.291,735

168,885

2,068,740

34.970

2,272,595

2.423.026

168,885

2,92 L929

34.970

3,125,784

3,714,761

LIABILITIES Current liabilities;

Accounts and other payables Internal balances Bonds payable Accrued interest

'fotal current liabilities

Noncurrent liabilities: Customer deposits payable Bonds payable

Total noncurrent liabilities

Total liabilities

NET ASSETS Invested in capital assets, net of related debt Restricted for debt service Unrestricted

Total net assets

18.300

113,216

-

-

131.516

-

-

131,516

853,189

-

307,030

$1,160,219

8,976

(113,216)

52,522

6.020

(45,698)

77,749

1,776,491

1.854,240

1,808,542

327,219

32,594

254.671

$ 614.484

27.276

-

52,522

6.020

85.818

77,749

1.776,491

1,854,240

1,940,058

1,180,408

32.594

561,701

$1,774,703

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

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FUND FIiN ANCLVL STATEMENTS (FFS)

FUND DESCRIPTIONS

General Fund

To account for resources traditionally associated with governments which are not required lo be accotinted for in another fund.

Special Revenue Fund

Street and Sidcnalk Sales Tax Fund -To account for the receipt and use o[ proceeds of 3.8181% of East Feliciana Parish sales tax collections. These proceeds arc dedicated (o the general maintenance and repairs of streets and sidewalks in the Town of Slaughter.

Enterprise Funds

Water and Gas lJtilit\' Funds -

To account for the provision of water and gas services to residents ofthe Town. All activities nccessaiy lo provide these services are accounted for in these funds, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection.


Balance Sheet Governmental Funds

June 30, 2011

ASSETS

Cash and interest-bearing deposits Investments Receivables -

Taxes Accounts

Total assets

LIABILITIES AND FUND BALANCES

Liabilities: Accounts payable Accrued liabilities Due to other funds

Total liabilities

Fund balances -Restricted Unassigned

Tolal fund balances

Total liabilities and fund balances

General

$379,926

-

25,811

10.104

$415,841

Special

Revenue

$ 10,583

3,709

8,413

-

$ 22.705

Total

$ 390,509

3,709

34,224

10,104

$ 438.546

$ 11,053

4,419

113.216

128,688

.

287.153

287.153

$415,841

$ 2,828

-

-

2.828

19,877

-

19.877

$ 22,705

$ 13,881

4,419

113.216

131,516

19,877

287,153

307.030

$ 438.546

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

9


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

June 30.2011

Total fund balances for governmental funds at June 30, 2011 $ 307,030

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

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

Land $ 170,190 Buildings and improvements, net of $105,917 accumulated depreciation 160,913 Infrastructure, nel of $79,764 accumulated depreciation 333,499 Equipment and vehicles net of $716,470 accumulated depreciation 188,587 853.189

Total net assets of governmental activities at June 30, 2011 $ 1,160,219


10

TOWN OF SLAUGIITER, LOUISIANA

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

YearEnded June 30, 2011

Revenues: Taxes

Licenses and permits

Intergovernmental

Fines and forfeits

Miscellaneous

Total revenues

Expenditures: Current -

General government Public safet\':

Police Fire

Highways and streets Capital outlay

Total expenditures

Excess (deficiency) of revenues

over expenditures

Other financing sources (uses): Transfers in Transfers out

Total other financing sources (uses)

Net changes in fund balances

Fund balances, beginning

Fund balances, endine

General

S 164,584

53,775

8L743

145,198

118,989

564.289

Special

Revenue

$ 44,687

-

-

-

242

44.929

Total

$ 209,271

53,775

81,743

145,198

119.231

609.218

!41.096

(352,710) 44,929

241.096

306,048

88,725

77,293

203.837

916,999

306,048

88,725

77,293

203.837

916,999

(307,781)

375,673

-

375,673

22,963

264.190

$ 287,153

(80,843)

(80,843)

(35,914)

55.791

S 19.877

375,673

(80.843)

294.830

(12,951)

319.981

S 307,030


11

JOWN OF SLAUGHTER, LOUISIANA

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

to the Statement of Activities Year Ended June 30. 2011

Total net changes in fund balances at June 30, 2011 per Statement of Revenues, Expenditures and Changes in Fund Balances $ (12,951)

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

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

Capital outlay which is considered expenditures on Statement of Revenues, Expenditures and Changes in Fund Balances $ 203,837

Depreciation expense for the year ended June 30, 2011 (85,470) 118,367

Tolal changes in nel assets at June 30, 2011 per Statement of Activities S 105.416


12

TOW^ OF SL.AUGHTER, LOUISI. N.A

Combining Statement of Net .Assets Proprietary Funds

June 30. 2011

.ASSETS Current assets:

Cash and interest-bearing deposits Investments Receivables -

Accounts

Due from other funds

Tolal current assets

Noncurrent assets: Restricted assets:

Cash and interest-bearing deposits Capital assets, net of accumulated depreciation Unamortized bond issuance costs

Total noncurrent assets

Tolal assets

Water

Utililv

S

22,558

32,291

93.351

Gas

Utilit)'

$ 34,322

11,537

49,723

72,817

Total

Utilin'

Enterprise

Funds

$ 34,322

34,095

82,014

166.168

148.200

2.202.024

150.224

168,399

70.571

238.970

316,599

144,060 2.022,994

34.970

24.825

45,746

-

168,885

2.068,740

34.970

2.272,595

2,589.194

LIABILITIES

Current liabilities: .Accounts payable Due to other funds Payable from restricted assets -

Revenue bonds payable [nteresl payable

Tolal current liabilities

Noncurrent liabilities: Customers' deposits Revenue bonds payable

Total noncurrent liabilities

fotal liabilities

NET ASSETS Invested in capital assets, net of related debt Restricted for debt ser\'ice Unrestricted

Total net assets

7,488 52,952

52,522 6.020

118.982

52,924 1,776,491

1.829.415

1.948.397

281,473

32,594

87,760

S 4(n ,8_27

L488

-

-

-

I.4S8

24,825 -

24.825

26.313

45.746 -

166,911

$212,657

8,976 52,952

52,522 6,020

120.470

77,749

1,776,491

1,854,240

1,974.710

327,219

32,594

254.671

S 614,484


TOW^^ Ol- SI-AUGIITER, l.OU'ISI.ANA

Combining Slalemenl of Revenues, Expenses, and Changes in Kel .Asscls Proprieiar)'Funds

Year Ended June 30. 2011

Operaiing revenues: Charges for services -

Water sales Gas sales

Miscellaneous

Total operating revenues

Operating expenses:

Salaries and wages

Amortization expense

Bad debt expense

Depreciation

Dues

Retirement coniributions

Gas purchases

Group heahh in.surancc

Insurance

Legal and professional

Malcriais and .supplies

Miscellaneous

Oftlce expense

Pa\rol] taxes

Repairs and maintenance

Telephone

Truck expense

Ulililics

Total operaiing expenses

Operaiing income

Nonof)eraling revenues (expenses): Interest income Interest and fiscal charges

Total nonoperating income (expenses)

Income before contributions and transfers

Contributions

Transfers out (nel)

Change in net assets

Net assets, beginning

Nel assets, endinti

Water Uiilitv

5 268.104

:68.137

194.256

73.881

528

(76,073')

(75,545)

(1:664)

48.591

(119,590)

(72,663)

474,490

S 401.827

Gas ULiliiv

355,226 2.785

358,011

180.172

] 77.839

155

155

177-994

3,000

(175,240)

5,754

206.903

Total

Utility

Enterprise

Funds

5268,104

355.226 .H IS

626.148

20,467

L399

318 86,944

929

5,508 -

14,965

8,038

2,669

22,766

5,109 51

1,530 5,674

688

3,773 13.428

20.466 -

262

4.260

650

5-508 87,162

14,965

5,853 2,669

18,355

5.671

51

1,530 6,332

688

3.773 1.977

40,933

]399

580 91.204

1,579 11,016

87.162

29.930 13.891

5,338

41,121

10,780

102

3.060

12.006 1,376

7.546 15.405

S212.657

374,428

251.720

683 (76,073)

(75,390)

176,330

51,591

(294.830)

(66,909)

681,393

5614.484

The accompanying notes arc an integral parr of the basic Hnancia] siatemenis.

14


Combining Slalemenl of Cash Flows Proprietar> Funds

YearEnded June 30. 2011

Cash flows from operating activities: Receipts from customers Payments to suppliers Payment to employees Other receipts

Net cash provided by operating activities

Cash flows from noncapital ilnancing aciiviiies: Net transfers to other Tunds

Net cash used by noncapital financing activities

Cash Hows from capital and related tniancing activities: Proceeds from state and local grants Principal paid on revenue bond maturities Interest paid on note and revenue bonds Acquisition of capital assets Increase in mtter deposits

Net cash provided (used) by capital and related financing activiiies

Cash flows from investing activities: Maturities of investments Purchase of investments Interest received on interest-bearing deposits

Net cash provided by investing activities

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

Keconeiliation of operating income to net cash provided by operaiing activities: Operating income

Adjustments to reconcile operating income to net cash provided by operaiing activiiies -

Depreciation .Amortization of bond issuance co.sls Changes in current a.sseis and liabilities:

Increa-se in accounts receivable Increase in accounts payable Increase in accrued liabilities

Total adjustments

Net cash provided by operating activities

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

Water Utililv

S265.S39 (79,925) (21.997)

33

163.950

Gas Utilitv

$351,122 (153,206) (21.996)

2.28_5

178.705

Total Utility

Enierpri.=;e Funds

5616.961 (233,131) (43.993)

2.818

342.655

(119.590)

(119.590)

48.591 (5 LOCK)) (76.073) (21.050)

3.365 (96,167)

; 144.060

$ 73.881

5.300

(5.300) 1,000

t .000

S 59.147

5177.839

(175.240) (294.830)

(175.2-10) (294.830)

53,891 (51-000) (76.073) (26.350)

4.365 (95,167)

22,517 (22.558)

528

487

(51.320)

195,380

11.517 (1K537)

155

135

4,600

54.547

34,034 (34,095)

683

622

(46,720)

249.927

$203,207

525

86.94-1

1.399

(2.265)

2.179

1.812

90.069

5163.950 SI

4,260

-

(4.104)

710 -866

78.705

91.204

1,399

(6,369)

2.889

L812

90.935

5342.655

15


Notes to Basic Financial Statements

(1) Summary of Significant Accounting Policies

The accompanying financial statements ofthe Town of Slaughter (Town) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements. Private-sector standards of accounting and financial reporting issued prior to December L 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not confiici with or contradict guidance of the GASB. Governments also have the option of following subsequent private-sector guidance for their business-t>''pe activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private-sector guidance. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note.

A. Financial Reporting Entity^

The Town of Slaughter was incorporated under the provisions of the Lawrason Act. The Town operates under the Mayor-Board of Aldermen form of govermnent.

As the municipal governing authority, for reponing purposes, the Town of Slaughter is considered a separate financial reporting entity. The financial reporting entity consists of (a) the primary government (municipality), (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entit>''s financial statements to be misleading or incomplete.

Governmental Accounting Standards Board (GASB) Statement No. 14 established criteria for determining which component units should be considered pati of the Town of Slaughter for fmancial reporting purposes. The basic criterion for including a potential component unit within the reporting entity is financial accountability. The GASB has set foith criteria to be considered in detennining financial accountability. This criteria includes:

1. Appointing a voting majorit)^ of an organization's governing body, and

a. The ability to impose its will on that organization and/or

b. The potential for the organization to provide specific fmancial benefits to or impose specific financial burdens on the municipalit>'.

2. Organizations for which the municipalitTy' does not appoint a voting majority but are fiscally dependent on the municipalitN-.


Notes to Basic Financial Statements (Continued)

3. Organizations for which the reporting entity financial statements would be misleading if data ofthe organization is not included because ofthe nature of significance ofthe relationship.

As required by generally accepted accounting principals, these financial statements present the Town of Slaughter (the primarx^ government) and its component units. By applying the above criteria, there are no component units ofthe Town of Slaughter.

B. Basis of Presentation

Government-Wide Financial Statements (GWFS)

The statement of net assets and statement of activities display information about the reporting government as a whole. They include all funds ofthe reporting entity. The statements distinguish between govemmental and business-t\'pe activities. Govemmental activities generally are financed through taxes, intergovenimental revenues, and other nonexchange revenues. Business-t\'pe activities arc financed in whole or in part by fees charged to external parties for goods or ser\'ice5.

The statement of activities presents a comparison between direct expenses and program revenues for the business-type activities of the Town and for each function ofthe Town's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) fees, fines, and charges paid by the recipients of goods or services offered by the programs, and (b) grants and contributions that arc restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund financial Statements

The accounts ofthe Town 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 w-ith finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.

The various funds of the Town are classified into two categories: govemmental and proprietary. The emphasis on fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. A fund is considered major if it is the primary operating fund ofthe Town or meets the following criteria:

17



a. Total assets, liabilities, revenues, or expenditures.êxpenses of that individual governmental 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 governmental or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined.

All funds o[ the Town are considered to be major funds and are described below:

Governmental Funds -

General Fund

The General Fund is the general operafing fund of the Town. It is used to account for all financial resources except those required to be accounted for in another fund.

Special Revenue Funds

Street and Sidewalk Sales Tax Fund -

The Street and Sidewalk Sales Tax Fund is used to account for the receipt and use of proceeds of 3.8181% of East Feliciana Parish's sales tax collections. These proceeds are dedicated to the general maintenance and repairs of streets and sidewalks in the Town.

Proprietary Funds -

Enterprise Fund

Enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent ofthe governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Town of Slaughter's enterprise funds are the Water and Gas Utility Funds.



C. Measurement Focus./Basis of Accounting

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

Measurement Focus

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

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

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

b. The proprietary fund 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 recoverv'), financial position, and cash fiows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net assets.

Basis of Accounting

In the government-wide statement of net assets and statement of activities, both governmental and business-type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded wiien 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. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33 "Accounting and Financial Reporting for Nonexchange Transacfions."

19



In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when "measurable and available." Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities ofthe current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are reported when due.

The proprietary fund utilizes the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when eamed and expenses are recorded when the liability is incurred or economic asset used.

D. Assets. Liabilities and Equitv

Cash and interest-bearing deposits

For purposes of the statement of net assets, cash and interest-bearing deposits include all demand accounts, savings accounts, and certificates of deposits ofthe Town. For the purpose ofthe proprietary fund statement of cash fiows, "cash and cash equivalents" include all demand and savings accounts, and certificates of deposit with an original maturity of three months or less.

Investments

Under state law the Town may deposit funds with a fiscal agent 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. I'he Town may invest in United States bonds, treasury notes and bills, government backed agency securities, or certificates and time deposits of state banks organized under Louisiana law and national banks having principal offices in Louisiana. In addition, local govemments in Louisiana arc authorized to invest in the Louisiana Asset Management Pool (LAMP), a nonprofit corporation formed by the State Treasurer and organized under the laws of the State of Louisiana, which operates a local govemment investment pool. Investments are stated at fair value.

Interfund receivables and payables

During the course of operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and ser\'ices type transactions are classified as "due to and from other funds." Short-term interfund loans are reported as "interfund receivables and payables." Long-temi interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund receivables and payables between funds within governmental activiiies are eliminated in the statement of net as.sets.

20

TOW^N OF SLAUGH TER, LOUISIANA

Notes lo Basic Financial Statements (Continued)

Receivables

In the government-wide statements, receivables consist o[ all revenues earned at year-end and not yet received. Major receivable balances for the governmental activities include sales and use taxes, and franchise fees. Business-t>pe activities report customer's utility service receivables as their major receivables. Uncollectible amounts due for customer's utility receivables are recognized as bad debts through the establishment ol' an allowance for uncollectible accounts at the time information becomes available which would indicate the uncollectibility ofthe particular receivable. The allowance for uncollectible accounts at June 30, 2011 w-as S2,061 for the W'ater Utility Fund and S3,174 for the Gas Utility Fund. Unbilled utility-' service receivables resulting from utility services rendered between the date of meter reading and billing and the end of the month, are not recorded due to immateriality at .lime 30, 2011.

Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in the applicable govemmental or business-type activities columns in the government-wide or fund financial statements. Capital assets are capitalized at historical cost or estimated cost if historical cost is not available. Donated assets arc recorded as capital assets at their estimated fair market value at the date of donation. The Town maintains a threshold level of $500 or more Ibr capitalizing capital assets.

The co.sts 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 assets. Depreciation is provided over the assets' estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows:

Buildings and improvements 40 years Equipment and vehicles 3-10 years Utility system and improvements 10-50 years Infrastructure 40 years

In the fund financial .statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures ofthe governmental fund upon acquisition. Capital assets used in proprictaiy^ fund operations are accounted for the same as in the novernment-wide statements.

21



Restricted Assets

Restricted assets include cash and interest-bearing deposits and investments ofthe proprietary' fund that are legally restricted as to their u.se. The restricted assets are related to the revenue bond accounts and utility meter deposits.

Long-tenn debt

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

.All long-term debt to be repaid from governmental and business-type resources is reported as liabilities in the government-wide statements. The long-term debt consists primarily of revenue bonds payable and utility meter deposits payable.

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

Compensated Absences

Vacation and sick leave are recorded as expenditures ofthe period in which paid. Employees earn vacation and sick leave at various rates depending upon length of employment. Vacation must be taken in the year earned and may not be carried over. Although sick leave is available for employees when needed, it does not vest nor is it payable at termination of employment.

Equity Classifications

In the government-wide statements, equity is classified as net as.sets and displayed in three components:

a. In\'ested in capital assets, net of related debt ~ Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.

b. Restricted net assets - Consists of net assets with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law-through constitutional provisions or enabling legislation.

VOWN OV SLAUGHTER, LOUISIANA


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 financial statements, govemmental fund equity is classified as fund balance. Fund balance is further classified follows.

The Town adopted G.ASB Statement 54 in the year ended June 30, 2011. As such, lund balances ofthe govemmental funds are classified as follows.

Nonspendable - amounts that cannot be spent cither 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 constitutional provisions or enabling legislation or because of constraints that are externally iiuposed by creditors, grantors, contributors, or the laws or regulations of other governments.

Committed - amounts that can be used only for specific purposes determined by a formal decision ofthe Council. The Coimcil is the highest level of decision-making authority for the Town.

Assigned - amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes.

Unassigned - all other spendable amounts.

W'hen an expenditure is incurred for the purposes for wliich both restricted and unrestricted fund balance is available, the Tow-ii considers restricted funds to have been spent first. When an expenditure is incurred for v^hich committed, assigned, or unassigned fund balances are available, the Town considers amounts to have been spent first out of commiUed funds, then assigned funds, and finally unassigned funds, as needed, unless the Town has provided otherwise in its commitment or assiiinment actions.

TOWTSI OF SLAUGHTER, LOUISIANA


As of June 30, 2011, fund balances are composed ofthe following:

General Sales Tax Fund Fund

Nonspendable $ - $ -Restricted - 19,877 Committed Assigned Unassigned 287,153 -

Total fund balance $ 287.153 $ 19,877

E. Revenues. Expenditures, and Expenses

Operating Revenues and Expenses

Operating revenues and expenses for proprietary funds are those that result from providing services and producing and delivering goods and/or seiviccs. It also includes all revenue and expenses not related to capital and related financing, noncapital financing, or investing activities.

Expenditures/Expenses

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

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

Governmental Funds - By Character Proprietary Fund - By Operating and Nonoperating

In the fund financial statements, governmental funds report expenditures of financial resources. Proprietary funds report expenses relating to use of economic resources.

Interfund Transfers

Permanent reallocations of resources bet\veen funds ofthe reporting entit>' are classified as interfund transfers. For the purposes ofthe statement of activities, all interfund transfers between individual governmental funds have been eliminated.



F. Revenue Restrictions

The Town has various restrictions placed over certain revenue sources from state or local requirements. The primary restricted revenue sources include:

Revenue Source Legal Restrictions of Use

Sales Tax See Note 5 Water utilit>' revenue See Note 9

The Town uses unrestricted resources only when restricted resources are fully depleted.

G. Budget and Budgetary Accounting

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

1. Prior lo June 15, the Clerk submits to the Mayor and Board of Aldermen a proposed operating budget for the period commencing the following July I.

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

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

4. After the holding of the public hearing and completion of all action neccssar)' to finalize and implement the budget, the budget is adopted through passage of a resolution prior to the commencement ofthe fi.scal year for which the budget is being adopted.

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

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

7. Budgets for all funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgeted amounts are as originally adopted or as amended by the Board of Aldermen. Such amendments were not material in relation to the original appropriations.

rOW^N OF SLAUGHTER, LOUISIANA


H, Capitalization of Interest Expense

It is the policy of the Town of Slaughter to capitalize material amounts of interest resulting from borrowings in the course ofthe construction of fixed assets. There was no interest capitalized on construction projects for the year ended June 30, 2011.

1. Use of Estimates

The preparation of financial 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 could differ materiallv from those estimates.

(2) Cash and Interest-Bearing Deposits

Under state law, the Town may deposit funds within a fiscal agent bank organized under the laws ofthe State of Louisiana, the laws of any other state in the Union, or the laws ofthe United States. The Town may invest in certificates and time deposits of the state banks organized under Louisiana law and national banks having principal offices in Louisiana. At June 30, 2011, the Town had cash and interest-bearing deposits (book balances) totaling $593,716 as follows:

Demand deposits S 98,849 Money market accounts and certificates of deposit 494,867 .

Total $ 593,716

Custodial credit risk for deposits is the risk that in the event ofthe failure of a depository financial institution, the Town's deposits ma\' not be recovered or will not be able to recover collateral securities that arc in the possession of an outside party. These deposits are stated at cost, which approximates market. Under state law, these deposits, (or the resuhing bank balances) must be secured by federal deposit insurance or similar federal security or the pledge of securities owned 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 ofthe Town or the pledging fiscal agent bank by a holding or custodial bank that is mutually acceptable to both parties. Deposit balances (bank balances) at June 30, 2011 are secured as follows:

Bank balances $600,531

Federal deposit insurance $553,510 Pledged securities 47,021

Total FDIC insurance and pledged securities $600,531



Pledged securities in the amount of $47,021 were exposed to custodial credit risk. These securities include uninsured or unregistered investments for which the securities are held by the bank, or by its trust department or agent, but not in the Town's name. Even though the pledged securities arc considered uncollateralized (Category 3). Louisiana Revised Statute 39:1229 imposes a statutory requirement on the custodial bank to advertise and sell the pledged securities within 10 days of being notified by the Town that the fiscal agent has failed to pay deposited funds upon demand. The Town does not have a policy for custodial credit risk.

(3) Investments

Investments in the amount of S37,804 at June 30, 2011 are in the Louisiana Asset Management Pool (LAMP), a local government investment pool. In accordance with G.ASB Codification Section 150.156, the investment in LAMP is not categorized in the three risk categories provided by GASB Codification Section 150.164 because the investment is in the pool of funds and thereby not evidenced by securities that exist in physical or book entry form. LAMP is administered by LAMP, Inc., a non-profit corporation organized under the laws ofthe State of Louisiana, and is govemed by a board of directors comprised of representatives from various local governments and state wide professional organizations. Only local governments having contracted to participate in L.AMP have an investment interest in its pool of assets. While LAMP is not required to be a registered investment company under the Investment Company Act of 1940, its investment policies are similar lo those established by the Securities and Exchange Commission's (SEC's) Rule 2-a7, which govems registered money market funds. The primary objective of LAMP is lo provide a safe environment for the placement of public funds in short-term, high quality investments. The LAMP portfolio includes only securities and other obligations in which local governments in Louisiana are authorized to invest. Accordingly, LAMP investments are restricted to securities issued, guaranteed, or backed by the U.S. Treasur)', the U.S. government, or one ol' its agencies, enterprises or inslrumenlalilies, as well as repurchase agreements collateralized by those securities. The dollar weighted average portfolio maturity of LAMP assets is restricted to not more than 90 days and consists of no securities with a maturity in excess of 397 days. The fair market value of investments is determined on a weekly basis to monitor any variances between amortized cost and market value. The fair market value ofthe Town's investment in LAMP is the same as the value ofthe pool shares. Normally, investments are required to be reported at fair value. For purposes of determining participants' shares, investments are valued at amortized cost. Investments in an external investinenl pool can be reported at amortized cost of the extemal investment pool. LAMP is an external investment pool that operates in a manner consistent with SEC Rule 2a7. The fair value of the investment is not materially different from the reported amount. LA.MP is designed to be highly liquid to give its participants immediate access to their account balances.

27

TOWTM OF SLAUGHTER, LOUISIANA


(4) Ad Valorem Taxes

Ad valorem taxes attach as an enforceable lien on property as of January 1 of each year. Taxes are levied by the Town in September or October and are actually billed to taxpayers in November or December. Billed taxes become delinquent on January I ofthe following year. The Town bills and collects its own property ta.\es using the assessed values determined by the Tax Assessor of East Feliciana Parish. Property tax revenues are budgeted in the year billed.

For the year ended June 30, 2011, taxes of 4.52 mills were levied on property with assessed valuations totaling $6,382,120. Total taxes levied were $28,847. Taxes receivable at June 30, 2011 were $829.

(5) Dedication of Sales Tax Proceeds

The Town of Slaughter receives 5.28% and 3.8181% of East Feliciana Parish sales tax collections for the General Fund and the Special Revenue Fund respectively. These proceeds ($61,827 for the General Fund and $44,687 for the Special Revenue Fund) are dedicated for the purpose of maintenance, repairs and upkeep ofthe streets and sidewalks in the Special Revenue Fund and for general operaiing expenditures in the General Fund. Sales ta.xes receivable at June 30, 2011 for the General Fund and Special Revenue Fund were $11,635 and $8,413, respectively.

(6) Restricted Assets - Proprietary Fund Type

Restricted assets consisted ofthe following at June 30, 2011:

Revenue bond sinking fund S 22,823 Revenue bond reser\'e fund 42,998 Capital additions and contingency fund 53,119 Customers' deposits 49,945

Revenue bond sinking fund $ 168.885

28

TOWTsI OF SLAUGHTER, LOUISIANA


(7) Capital Assets

Capital asset activity for the year ended June 30, 201 1 was as follows:

Governmental activities: Capital assets not being depreciated:

Land Other capital assets:

Buildings and improvements Infrastructure Equipment and vehicles

Totals

Less accumulated depreciation Buildings and improvements Infrastructure Equipment and vehicles

Total accumulated depreci ation

Balance 07/01/10

S 170,190

236,995 301,517 842.801

1.551,503

94,679 62,826

659.176

816.681

Addifions

$

29,835 111,746 62.256

203.837

11,238 16,938 57,294

85,470

Deletions

S

---

_

---

-

Balance 06/30/11

$ 170,190

266,830 413,263 905.057

1.755,340

105,917 79,764

716.470

902.151

Governmental activities, capital assets, net 734.822 $ 118.367 S

Business-tv'pe activities: Water distribution svstem Gas distribution system Equipment and vehicles Office equipment

Totals

Less accumulated depreciation Water distribution system Gas distribution system Equipment and vehicles Office equipment

Total accumulated depreciation

2,537,986 63,598

152,835 23,489

2,777,908

542,116 16,592 71,581 11,725

642,014

21,050 3,000 --

24.050

74,311 4,260

11,693 940

91.204

Business-type activities, capital assets, net $ 2,135,894 S (67,154) S

$ 853.189

2,559,036

66,598

152,835

23,489

2.801,958

616,427

20,852

83,274

12,665

733.218

S 2.068,740

29

$ 8,123 52,410

7,255 17.682

$ 85,470

rOWN o r SLAUGHTER, LOUISIANA


Depreciation expense was charged to govemmental activities as follows:

General government Police Fire Streets

Total depreciation expense

Depreciation expense was charged to business-type activities as follows:

Water $ 86,944 Gas 4,260

Total depreciation expense S 91,204

(8) Changes in Long-ferm Debt

The following is a summar>' of long-temi debt transactions applicable to the business-type activities ofthe Town for the year ended June 30, 2011.

Water Revenue Bonds

Long-term debt payable, July 1, 2010 $ 1,278,490 Note payable converted to long-tenu debt 601,523 Long-term debt issued Long-teiTU debt retired (51,000)

Long-term debt payable. June 30, 2011 $ 1,829,013

Long-term debt payable at June 30, 2011, is comprised ofthe following issues:

$1,355,000 Water Revenue Refunding Bonds payable, due in annual installments of 525,000 through $81,000 through June 1, 2036; interest at 3.45 percent, payable from water system revenues S 1,251,490

$640,523 Water Revenue Bonds payable, due in annual in.stallments of $16,000 through $45,000 through June 1, 2028; interest at 3.45 percent, payable from water system revenues 577 523

$ 1,829-013

30

TOWN OF SLAUGHTI^R, LOUISIANA


The lone-term debt is due as follows:

Water Revenue Bonds Year Ending

June 30, 2012

2013

2014

2015

2016

2017-2021

2022-2026

2027-2031

2032-2036

Principal Payments

$ 52,523 55,000 59,000 61,000 63,000

355,000 436,000 389,000 358.490

$1,829,013

Interest Payments

S 72,246 70.171 67,998 65,668 63,258

276,887 200,791 112,668 42.715

$ 972,402

(9) Flow of Funds: Restrictions on Use - W ater Revenue Bonds

Under the temis ofthe General Bond Ordinances dated November 28, 2007, relative to the $1,355,000 Water Revenue Refunding Bonds and June 30, 2008 relative to the $640,523 Water Revenue Bonds, all income and revenues (hereinafter referred to as revenue) of ever)' nature, earned or derived from operation ofthe water utility system shall be deposited into a Water Revenue Fund, which are pledged and dedicated to the retirement of said bonds, and are to be set aside into the following special funds:

Each month, no later than the 20"' ofthe month, the Town is required to transfer 1/12 of that year's debt ser\'ice from the Water Revenue Fund into the Water Revenue Bond and Interest Sinking Fund. Twice a year, on June 1 and December 1, a withdrawal will be made from the Sinking Fund, principal and/or interest coming due on said dates to the Department of Health and Hospitals (DHH).

There shall also be set aside into a "W''ater Revenue Bond Reser\'e Fund" an amount equal to one-half (1/2) ofthe highest annual debt serv'ice in any subsequent year. The Reserve Fund should be funded by the Town through monthly installments. Such amount may be used only for the payment of maturing bonds and interest coupons for which sufficient funds are not on deposit in the Water Revenue Bond and Interest Sinking Fund and as to which there would otherwise be default.

Funds will also be set aside into a "Water Revenue Bond Depreciation and Contingency Fund" in order provide an available reserve for extensions, additions, improvements, renewals and replacements necessar\' to properly operate the Water System. Money in this fund may be used for emergency situations to get the system repaired and generating revenues as soon as possible after a casualty and for any types of ongoing capital improvements to the water system. The Contingency Fund should be funded by the Town through monthly installments equal to 5% of the previous month's net water revenues, until it contains $75,000.

31



The General Bond Ordinance also contains a rate covenant by which the Town has agreed to maintain its water rates at a level that will always provide net revenues ofthe system equal to at least 120% of annual debt service on the bonds.

All ofthe revenues received in any fiscal year and not required to be paid in such fiscal year into any of the above noted funds shall be regarded as surplus and may be used for any lawful corporate puqôse.

Al June 30, 2011, the Town was in compliance with all bond covenants.

(10) Employee Retirement

All employees are members of one ofthe following retirement systems:

Federal Social Security System Municipal Employees' Retirement System of Louisiana

Municipal Police F^mployees' Retirement System of Louisiana

Pertinent infomiation relative lo each plan follows:

A) Federal Social Security System All employees ofthe Town of Slaughter are members ofthe Federal Social

Security System. The Town and its employees contribute a percentage of each employee's salar>' to the System (7.65% contributed by the Town; 7.65% by the employee from 7/1/10 to 12/31/10, and 5.65% from 1/1/11 to 6/30/11). Total covered wages for the years ended June 30, 2011, 2010, and 2009 totaled $337,982, $318,257, and $287,291, respectively. The Town's contributions to the System for the years ended June 30. 2011, 2010, and 2009 were $25,856, $24,347, and $21,978, respectively, equal to the required contributions for each year.

B) Municipal Employees' Retirement Svstem of Louisiana System

Eligible employees of the Town participate in the Municipal Employees' Retirement System, which is a cost-sharing, multiple-employer defined benefit public employee retirement system. The plan is controlled and administered by a separate board of trustees. Pertinent information relative to the plan follows:



Plan Description - The System is composed of two distinct plans. Plan A and Plan B, with separate assets and benefit provisions. All employees of the municipalitv' are members of Plan B.

All permanent employees working at least 35 hours per week who are not covered by another pension plan and are paid wholly or in part from municipal funds and all elected municipal officials are eligible to participate in the System. Under Plan B, employees who retire at or after age 60 with at least 10 years of creditable service or at or after age 55 with at least 30 years of creditable service are entitled to a retirement benefit, payable monthly for life, equal to 2% of their final-average monthly salary in excess of $100 for each year of creditable service. Furthermore, employees with at least 10 jêars of creditable service, but less than 30 years, may rake early retirement benefits commencing at or after age 60, with the basic benefit reduced 3% for each year retirement precedes age 62, unless he has at least 30 years of creditable service. In any case, monthly refiremerit benefits paid under Plan B cannot exceed 100?/o of final-average salary. Final-average salar>' is the employee's average .salary over the 36 consecutive or joined months that produce the highest average. Employees who tenitinate with at least the amount of creditable serx'ice stated above, and do not withdraw their employee contributions, may retire at the ages specified above and receive the benefit accrued to their date of temiination. The System also provides death and disability benefits. Benefits are established or amended by state statute.

The system issues an annual publicly available financial report that includes financial statements and required supplementary information for the System. That report may be obtained by writing to the Municipal Employees' Retirement System of Louisiana, 7937 Office Park Boulevard, Baton Rouge, Louisiana 70809.

Funding policy - Under Plan B, members are required by statute to contribute 9.25% of their annual covered salary and the Town is required to contribute at an actuarially detennined rate. The current rate is 14.25%. Contributions to the System also include one-fourth of 1% (except Orleans and East Baton Rouge parishes) ofthe taxes shown to be collectible by the tax rolls of each parish. These tax dollars are divided betv 'een Plan A and Plan B based proportionately on the salaries ofthe active members of each plan. The contribution requirements of plan members and the Town are established and may be amended by state statute. As provided by R.S. 11:103, the employer contributions are determined by actuarial valuation and are subject to change each year based on the results ofthe valuation for the prior fiscal year. The Town's contributions to the System under Plan B for the years ending June 30, 2011, 2010, and 2009 were $21,849, $18,973, and $16,134, respectively, equal to the required contributions for each year.

. ^ j

'TOWN OF SLAUGHTER, LOUISIANA


C) Municipal Police Employees' Retirement Svstern of Louisiana (Svstem)

Eligible employees of the Town participate in the Municipal Police Employees' Retirement System, which is a cost-sharing, multiple-employer defined benefit public employee retirement system. The plan is controlled and administered by a separate board of trustees. Pertinent infomiation relative to the plan follows:

Plan description ~ All full-time police department employees engaged in law enforcement are required to participate in the System. Employees who retire at or after age 50 with at least 20 years of creditable seivice or at or after age 55 with at least 12 years of creditable service are entitled to a retirement benefit, payable monthly for life, equal to 3 1/3% of their final-average salary for each year of creditable service. Final-average salaiy is the employee's average salaiy over the 36 consecutive or joined months that produce the highest average. 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 accrued to their date of tennination. The System also provides death and disability benefits. Benefits are established or amended by .state statute.

'The System issues an annual publicly available financial report that includes financial statements and required supplementary' information for the Sy.stem. That report may be obtained by writing to the Municipal Police Employees' Retirement System, 8401 United Plaza .Boulevard, Room 270, Baton Rouge, Louisiana 70809-7017.

Funding Policy - Plan members are required by state statute to contribute 7.5% of their annual covered salar\' and the Town is required to contribute at an actuarially detennined rate. The current rate is 25.0% of annual covered payroll. The contribution requirements of plan members and the Town are established and may be amended by state statute. As provided by R.S. 11:103, the employer contributions are determined by actuarial valuation and are subject to change each year based on the results of the valuation for the prior fiscal year. The Town's contributions to the System for the years ending June 30, 2011, 2010, and 2009 were S20,530, $7,931, and $7,636, respectively, equal to the required coniributions for each year.



(11) Segment Information for the Enterprise Fund

The 'Town of Slaughter maintains two enterprise funds that provide w aier and gas services. Secnient information for the year ended June 30. 2011, was as follows:

Operating revenues

Depreciation Operating expenses

Total operating expenses

Operaiing income

Water Fund

$268,137

86,944 107,312

194.256

$ 73.881

Gas Fund

$358-011

4,260 175-912

180.172

$177,839

Total Enterprise

Funds

$ 626,148

91,204 283.224

374,428

S 251,720

(12) Compensation of Town Officials

A detail of compensation paid to the Mayor and Board of Aldermen for the year ended June 30.2011 follows:

Bobbie Bourgeois, Mayor

Aldennen: Thomas Booth Ashby Schwartz Robert Jackson William McMills Nicholas St. Gennain

$ 7,800

2,040 2,040 2,040 2,040 2,040

$18,000

(13) Risk Management

The Town is exposed to various risk of loss related lo torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Town maintains commercial insurance coverage for each of those risks of loss. Management believes coverage is sufficient to preclude any significant uninsured losses to the Town.

3^

(14) Pending Litigalion

There was one lawsuit pending against the Town of Slaughter involving monetary' liability al June 30, 2011. The Town of Slaughter's legal advisor is unable to estimate the ultimate resolution of this matter. In the opinion of management, the outcome of this item will not have a material effect on the financial position ofthe Town.

(15) Interfund Transactions

A. Receivables and Payables

Interfund receivables and payables consisted ofthe following al June 30, 2011:

Due to the Water and Gas Utility Funds from the General Fund representing short-temi loans S 113.216

Due to the Gas Uiilit> Fund from the Water Utilit)' Fund representing short-term loans 52.952

Total $166,168

Sumniar\' of balances due from other funds reported in fund financial statements:

Due from other funds, Statement of Net Assets - Proprietar\' Funds $ 166,168

B. Transfers

Transfers consisted ofthe following at June 30, 2011: Transfers In Transfers Out

Governmental Funds: General Fund $375,673 S Street and Sidewalk Sales Tax Special Revenue Fund - 80,843

Proprietarx' Funds: Water Utility Fund - 119,590 Gas Utility Fund - 175,240

'Total $375,673 $ 375,673

Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them.

(16) Subsequent Event Review

The Town's management has evaluated subsequent events through September 8, 2011, the date which the financial statements were available to be issued.

36

REQUIRED SUPPLEMENTARY ESTORMATION

37

TOWN OF SLAUGHTER. L0U1SL\NA General Fund

Budgetar\'- Comparison Schedule YearEnded June 30, 2011

With Comparative Actual Amounts For Year Ended June 30, 2010

:oii

Revenues: Taxes Licenses and permits Intergovernmental Fines and forfeits Vliscellaneous

Total revenues

Expenditures: Current -

General govemment Public safety

Police Fire

Highways and streets Capital outlay

Total expenditures

Deficiency of revenues over over expenditures

Other financing sources; Transfers from Utility Funds Transfer from Sales Tax Fund

Total other financing sources

Bud Orisinal

$157,000 55.000 39,700

130,000 12,800

394.500

220,956

275,284 72,208 73,800

100,000

742.248

(347,748)

250,000 20.000

270,000

get Final

$159,872 45,000 88,755

135,725 113.375

542.727

218,397

287,449 93,433 71,964

203.837

875,080

(332,353)

193,500 101,800

295.300

.Actual

$164,584 53.775 81,743

145,198 118.989

564.289

241,096

306,048 88,725 77,293

203.837

916.999

(352,710)

263.330 112.343

375,673

Variance with Final Budget

Posifive (Negative)

$ 4,712 8,775

(7,012) 9,473 5,614

21.562

(22,699)

(18,599) 4,708

(5329) -

(41,919)

(20,357)

69.830 10.543

80.373

2010 Actual

$154,285 55,569 67,269

115,453 111.684

504,260

223,467

265,596 69,527 94,732 93,933

747,255

(242,995)

256,882 30.307

287,189

Excess (deficiency) of revenues and other sources over expenditures

Fund balance, beginning

(77,748) (37,053) 22,963 60,016 44,194

264,190 264,190 264,190 _ _ - 219,996

Fund balance, ending $186.44: S227.137 $287,153 $ 60.016 S264.190

8

TOWT\T OF SLAUGH TER, LOUISIANA General Fund

Budgetary' Comparison Schedule - Revenues Year Ended June 30, 2011

W-ith Comparative Actual Amounts For Year Ended June 30, 2010

2011

axes: Property' taxes Sales taxes Franchise tax

Total taxes

icenses and pemiits: Occupational licenses

Budnet Original

$ 27,000 65,000 65.000

157.000

55,000

Final

$ 29,500 59,472 70.900

159.872

45.000

Actual

$ 28,539 61,827 74.218

164.584

53.775


Positive (Negative)

S (961) 2,355

3,318

4,712

8,775

2010 .Actual

$ 26,756 59,434 68.095

154.285

55,569

Intergovernmental: Federal - FEMA State of Louisiana-

Grants Beer taxes Equipment grants

Total intergovernmental

-

35,000 1,700 3.000

39.700

-

80,000 1,690 7,065

88.755

-

80,000 1,743 -

81,743

-

-53

(7,065)

(7.012)

33,968

25,942 1,690 5.669

67,269

Fines and forfeits 130.000 135.725 145.198 9-473 115.453

Miscellaneous: Interest income Donations Other

"Total miscellaneous

Total revenues

800 -

12,000

12,800

S 394.500

625 100,000

12.750

113.375

$542,727

1,181 101,000

16.808

118.989

$564,289 $

556 1,000 4,058

5,614

21.562

1,365 100,000

10,319

111,684

$504,260

TOWN OF SLAUGHTER, LOUISIANA General Fund

Budgetary Comparison Schedule - Expenditures YearEnded June 30, 2011

With Comparative .Actual Amounts For Year Ended June 30, 2010

2011

Buduet

Original Final Actual

Variance with Final Budaei

Positive (Negative)

2010 .Actual

Current: General government -

Computer expenditures Dues Election expenditures Equipment rent Group health insurance Insurance Janitorial supplies Materials and supplies Miscellaneous Onice expenditures Payroll taxes Professional services Printing

Repairs and maintenance Retirement contributions Salaries 'Telephone 'Training Utilities

Total iicncral a:overniiient

$ 3,500 2,000 -156

6,800 15,500

800 10,000 5,000 8,000

11,500 5,200 1,500 3,500 6,500

132,000 3,500 3,500 2,000

220,956

$ 4,135 1,750 -]56

12,211 14,200

768 7,125 1,555 8,012

10,410 4,150 L350 1.069

10,855 130,119

4,112 4,500 1,920

218,397

S 3,899 1,894 -]56

21,708 9,002

888 7,441

11,318 8,285

10,425 4,607 1,903

891 7,957

137,907 4,396 6.418 2.001

241.096

$ 236 (144) --

(9,497) 5,198 (120) (316)

(9,763) (273)

(15) (457) (553)

178 2,898

(7,788) (284)

(L918) (81)

(22.699)

$ 2,825 1,747 6.021

156 8,212

14,188 637

7,574 17,443 6,926 9,069 4,135 1,328 1.470 7.355

123,995 3,901 4,336 2.149

223-467

(continued)

40

TOWM OF SLAUGHTER, LOLISI.'XNA General Fund

iiJudgctary Compari.wn Schedule - E.xpenditures (Coniinued)

Year Ended June 30, 2011 With Comparative Actual .Amounts For Year Ended June 30, 2010

!011

Public saler> -Police:

Citation expenditures Court appearance fees Equipment reiii Group health insurance Insurance

.Materials and supplies Miscellaneous Office supplies Payroll taxes Professional senices Repairs and maintenance Retirement coniriburions Salaries Sheriffs fees Telephone Training

.'\uto expenditures Uiifiiies

Total police

Fire: .Appropriation to Fire iêpartmenl Computer expenditures ELjuipmcnl rent Insurance

.Materials and supplies Miscellaneous Onice supplies Payroll taxes Professional senices Repairs and maintenance Salaries Telephone Training

Truck expenditures

tiii lilies

Total fire

Total public safety

Fiudaet Original

8,000 500

2.500 26.000 26.000

9,500 2,600

3,500

11.500 500

8.000 8,000

128,284

2.400 4.000 3,000

27,500 3.500

275.2S4

Final

9.231 300

2,496 38.214

26,500 20.605

1,878

4.629 10.500

1,500

600

11.705 123.190

2.400 2.335

1,5U0 26,411

.3,455

287,449

.Actual

6.973 2.695 2,496

48,024 29.441 14,367

441

7.036 10,635

2.155 222

20.530 122,342

2.400 2.574

1.028

28.946 3.743

306.048

X'ariance with Final Budeet

Positive

tNeyaiive)

2.258

(2.395) -

(9.8 lOj (2.941) 6.238 1.437

{2.407}

(135) (655)

378 (S .825)

848 -(239) 472

(2.535)

(288)

(.18.599)

2010

.Actual

7.827 3,320 -

25.699

26.550 12.090

792

5.365

9.926 3.515

613 7,93 1

119,511

2,400 2.979

3.003 30,731 3.344

265.596

3.700

4U0

1.500

1.000

13.000

1.700

500

i.800

1.0(KJ

10.500

17,108

4,000

4,500

3,500

8,000

72.208

.347.492

500

278

401

2,400

17,320

1,650

1,200

2,047

2.412

13.577

25,592

4,500

5-100

6.459

_9.997

93.433

343

401

3,400

11.834

2,581

973

2.051

3.405

13.251

26.816

4,784

3,715

5,935

9.236

88.725

500

( 6 5 ) 459

536

380.88; 94.77;

(1,000) 5.486

(931 i 227

(4) 1993) 326

(1.224) (284)

1.385 524

761

4.708

113.891)

2.375 11,653

1.517 1.272 1,344 -

10.040

17.568 4.476 4.824

4.947 8,516

69,527

335.123

(continued)

TOWN OF SLAUGHTER, LOUISIANA (jeneral Fund

Budgetar)' Comparison Schedule - Expenditures (Continued) YearEnded June 30, 2011

With Comparative .Actual Amounts For Year Ended June 30, 2010

2011

Highways and streets -Appropriation to Fire Department Garbage

Group health insurance Insurance

Materials and supplies

Miscellaneous Office supplies

Pavroll taxes Professional services Repairs and maintenance Retirement contributions Salaries Telephone 'Truck expenditures Utilities

Total highways and streets

Capilal outlay: General govemment -

Buildine addition Public safety - police

Autos and equipment Building addition

Public .safeiv - fire .Autos and equipment

Highways and streets Street improvements

Total capital outlay

Total expenditures

Buc Oriainal

7.500

1,300 12.000 4.700

16.000

750 500

625 3,200 -

2,000 11,150

575 2.500

11.000

73.800

-

100,000 -

-

-

100.000

$742,248

Isiet Final

-

1,313 22,689 3,525

7,018

895 399

915 3.028 1,092

2.671 11,439

561 3,608

12.811

71.964

-

81,591 -

10,500

111.746

203.837

S 875.080

Actual

-1,114

14.965 3,606

11,088

4,096 51

756 2,751 9,482 2,283 9,984

567 3,772

12,778

77,293

-

61,741 19.8.50

10.500

111,746

203.837

S 916.999

Variance with

Final Budget Positive

(Negative)

-

199 7,724

(81) (4.070)

(3,201)

348 159 277

(8,390) 388

1,455

(6) (164)

(5,329)

-

19.850 (19.8.50)

-

-

-

$ (41,919)

2010 Actual

13.000

1,302 15,258 3,519

14,133

1.063 644

818 2,960

16,171 1,810

10.682 514

3,008 9.850

94.732

6,100

82,633 -

-

5,200

93,933

$747,255

42

FOWN OF SLAUGHTER, LOUISIANA Street and Sidewalk Sales Tax Fund

Special Revenue Fund

Budgetary Comparison Schedule Year Ended June 30, 2011

With Comparative Actual .Amounts For Year Ended June 30. 2010

Re\enues: Sales ta.\es

Miscellaneous - interest

Total revenues

!011

Budget Original

$48,500 300

Final

$ 42.975 250

Actual

$ 44,687 242


Positive (Negative)

$ 1,712 (8)

2010 Actual

545,563 156

48.800 43.225 44.929 1.704 45.719

Expenditures:

Excess of revenues over expenditures _i§. !?^5

Other tlnancing sources (uses): Transfers from (to) Water Fund Transfer to General F"und

Total other financing sources (uses)

J8,80q

(20.000)

(20,000)

43.225

31.500 (101,800)

_(70_.30())

44.929

31,.500 (112,343)

(80,843)

1.704

(10,543)

(10,543)

45.719

(3.701) (30,307)

(H0_0_8)

Excess of revenues and other sources over expenditures and other uses 28,800 (27,075) (35,914) (8.839) 11.711

Fund balance, beeinnine 55.791 55.79 55,791 44,080

Fund balance, endins $84,591 S 28,716 $ 19,877 $ (8,839) S55,79

OTHER SLPPLEMEMARY IINFORM.\T10N

44

TOWnV OF SLAUGHTER, LOUISIANA Enterprise Funds

LTtility Funds

Schedule of Number of Utility Customers (Unaudited)

June 30. 2011 and 2010

Records maintained hy the Town indicated the following number of customers were being served during the months of June, 2011 and 2010:

Department 2011 2010

Water (metered) 644 641 Gas 339 346

45

INTERNAL CONTROL, COMPLIANCE

AND

OTIIER MATTERS

46

C. Burton Kolder, CÂ* r?uS50il F. Champagne. CPA* V'::tor .R. Slaven CPA* P. Troy •OourvillB, C.-A* •Gc-raW A Tnibodeaux Jr..CPA* RobGrt S Caner, CPA' ArtfiurR. Mnon, CPA*

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC

Tvnes E M\XD\;, Jr. CPA Allei J LaBr>'.CPA .AloertR. Legsr C 'A °F3.CS.A-Penny Anuelle Scruggins, CP.A Cnrjslne L Cousin. CPA Mary • . Thibodesuj;. CPA Mar>riallW Guiary CPA .Alan M Taylor, CPA Jsnes R Roy C. A RoDe.1 J Metz. CPA K&i|y M. Douce:. CPA C -:e'y!'_ Bartley, CPA Mandy B. Self. CPA Paul L Delcambre Jr CPA \'.'anda F Arcemen*,, CPA, CVA .•<r:stin B Dauzat, C.-.A Richa'G R. Ance-san Sr, CPA Caiolvn C. Anaerson. CÂ

Retired' Cor..-ad 0. Chaaman CFA* 200£ Har-vJ CIOS'JO CPA 2037

A ProiL'SSonal AooourtnnCo'pornbor

CERTIFIED PUBLIC ACCOUNTANTS

OFFICES

183 South Beadle Kd Lafayette. LA /L'bCS Phone (o?7; 2Z2-^:^.\ Fai. •;337i 232-8660

r 3 Fast Brioge St Kreaux Bridge, LA70;; l l Ph-jne (33?) 332 4020 Fax(337j 532-2SoV

1234 CaîdDr. Ste203 N',o -gar City. LA 70380 Phone (9Sc; 354-2020 Fax(9S5) 354-3020

405 West Cotton Stree; Vil'e Piatie. LA 70586 Dnorm •:337) 353-2792 Fa> (337; 353-3049

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STA FEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

332 West SiXin Aver'iue Obenn. _A 705-35 Fhore (337) S39 i - l i ' ! Fax .;337) 639-4568

450 East Ma.r- Slret;: Now bL-fia, \J\ 70560

.^hone (337)357-9204 Fa.; (337)357-5208

200 Soij:'i Mair:S;!=ei Abievile, U-. 70 -10

Phore (337)e93-7t'44 F2x.;337.693-7946

1C;-;3 MainSirut* Franklin. ..A .'0538

P-,o.'>e(337;82?-C2/2 Faxi337ie:.'S-C:J90

133 Eas: Waôil St Mar'fSi'iJ'e LA /1351

p-ione:3-9)253-9252 Fa. (3-5)253 8581

52'i Man Street HneviI.e. LA 7-350

P'io-!G (318,1442-4421 Fax (316)442-5833

•A'EB SITL ,'VKCS-XPAS COW

Honorable Bobbie Bourgeois, Ma>or and members ofthe Board of Aldermen

Town of Slaughter, Louisiana

We have audited the financial statements ofthe governmental activities, the business-t^•pe activities, and each mtijor fund ofthe Town of Slaughter. Louisiana (the Town) as of and for the year ended June 30, 2011, which collectively comprise the Town's basic financial statements, and have issued our report thereon dated September 22, 2011. We conducted our audit in accordance with auditing standards, generally accepted in the United States of America and the standards applicable to fmancial audits contained in Government Auditing Standards issued by the Comptroller (jeneral ofthe United Stales.

Internal Control Over Financial Reporting

In planning and perfonning our audit, we considered the Fown's internal 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 ofthe effectiveness ofthe Town's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the 'fown's internal control over financial reporting.

Our consideration of internal control over financial reporting was for the limited puqôse described in the preceding paragraph and was not designed to idcntif\' all deficiencies in intemal control over financial reporting that might be significant deficiencies or material weaknesses, and therefore, there can be no assurance that all deHciencies, signiHcant deficiencies, or material weaknesses have been identified. Flowever, aj; described in the accompanying summarv schedule of current and prior year audit findings and corrective action plan, we identified certain deficiencies in intemal control over fmancial reporting that we consider to be material weaknesses.

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 internal control such that there is a reasonable possibility that a material misstatement ofthe entit>'''5 financial statements will not be prevented, or detected and corrected on a timely basis, We consider the deficiencies described in the accompanying summar>' schedule of current and prior year audit findings and corrective action plan as items 1 l-l(IC) and 11-2((C) to be material weaknesses.

Member of: AN'.FRICAN INSTITUTE Or CERTIFIED P U B L C ACC0UNTAN' "^S

SOC: ;ERTF!EDRJBL

Member of: iYC'F LOU'SI.ANA : ACCOUNTANTS

Compliance and Other Matters

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

The Town's responses to the findings idcntiiled in our audit are described in the accompanying summar>' schedule of cuirent and prior year audit findings and con*ective action plan. We did not audit the Town's response and, accordingly, we express no opinion on it.

'fhis report is intended for the infonnation of management. However, this report is a matter of public record and its distribution is not limited.

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

Lafayette, Louisiana September 22, 2011

48

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Town of Slaughter - app1.lla.state.la.usapp1.lla.state.la.us/PublicReports.nsf/16EB5C5CE... · INTERNAL CONTROL, COMPLIANCE AND OTHER MATTERS Report on Internal Control over Financial