Village of Loreauville - app1.lla.state.la.usapp1.lla.state.la.us/PublicReports.nsf/BABE8EB0048CDBD5862574F… · VILLAGE OF LOREAUVILLE, LOUISIANA Financial Report Year Ended June

VILLAGE OF LOREAUVILLE, LOUISIANA

Financial Report

Year Ended June 30,2008

Under provisions of state law, this report is a publicdocument. A copy of the report has been submitted tothe entity and other appropriate public officials, Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and. whereappropriate, at the office of the parish clerk of court.

Release Date

TABLE OF CONTENTS

Page

Independent Auditors' Report 1 - 2

BASIC FINANCIAL STATEMENTS

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

FUND FINANCIAL STATEMENTS (FFS)Fund descriptions - major funds

Balance sheet - governmental funds 9Reconciliation of the governmental funds balance sheet

to the statement of net assets 10Statement of revenues, expenditures, and changes in fund balances-

governmental funds 11Reconciliation of the statement of revenues, expenditures, and

changes in fund balances of governmental funds to thestatement of activities 12

Statement of net assets - proprietary fund 13Statement of revenues, expenses, and changes in fund net

assets - proprietary fund 14Statement of cash flows - proprietary fund 15-16

Notes to basic financial statements 17-30

REQUIRED SUPPLEMENTARY INFORMATION

General Fund - budgetary comparison schedule 32Sales Tax Special Revenue Fund - budgetary comparison schedule 33

OTHER SUPPLEMENTARY INFORMATION

General Fund:Budgetary comparison schedule - revenues 35Budgetary comparison schedule - expenditures 36-37

INTERNAL CONTROL, COMPLIANCE, AND OTHER MATTERS

Report on Internal Control over Financial Reportingand on Compliance and Other Matters Based onan Audit of Financial Statements Performed inAccordance with Government Auditing Standards 39-40

Schedule of prior and current year audit findingsand management's corrective action plan 41-42

C- Burton Koldtf. CPA*RuSMll F. Champagne. CPA*Nftdor R, Slawen. CPA*P- Tnjy Courvtlte, CPA"GeraM A Thtoodeeua. Jr.Robart S. Carter. CPA"Arthur R. Mtxon. CPA'

CPA'

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTS

P.O. BOX250Breaux Bridge, LA 70517

Tynw E. Moon, Jr., CPAADvU.LaBiy.CPAAfcartR. Lager. CPA.PFS.CSA*Penny AngaOa Seruggira, CPAChnstkw L Cousin, CPAMary T. Tnibudeam. CPAManhaUW. Guidry. CPAAlan M. Taylor. CPAJamea R. Roy, CPARobart J Matz. CPAK*Uy U. Doucet. CPACheryt L, Barttoy. CPA. CVAMandy B. S«R. CPAPaul L Oefcambre, Jr. CPA

Phone (337) 332-4020Fax (337) 332-2867

Retire*Conrad 0. Chapman, CPA' 2006Harry J. Ctostio. CPA 2007

INDEPENDENT AUDITORS' REPORT

OFFICES

183 South Boedte Rd.Latayelta. LA 70500

Phona (337) 232-4141Fo (337) 232-8660

113 East BridoeSL 133 East We*ttSlBreaux Bridge. LA 70517 Marksvilto. LA 71391Phone (337) 332-4020 Phone (318) 253-9252Fan (337)332-2867 F«t318)25W681

1234 David Dr. SI* 203 408 Wait Cotton StreetMorgan City. LA 70380 Villa Platta. LA 705BBPhone (985) 384-2020 Phone (337) 363-2792fax [985) 384-3020 Fax {337) 363-30*9

332 W«tt Sixth Avenue 200 South Main StreetObarln. LA 70655 Abbevrt*. LA 70510Phone (337) 639-4737 P hon» (337) 693-79*4fa»(33T> 63*4566 Fa* (337} 893-7946

450 EMI Main StrMlNew Ibene, LA 70560Phone (337)367-9204Fsx (337) 367-9208

1013 Main StreetFranklin, LA 7053B

Phone (337)828-0272Ft* (137) 328-0230

• A Pratvtilonal AccotadinQ CeiponlM

WEBSITEWWW. KCSRCPAS, COM

The Honorable Albert A. Broussard, Mayorand the Members of the Board of Aldermen

Village of Loreauville, Louisiana

We have audited the accompanying financial statements of the governmental activities, the business-type activities, and each major fund of the Village of Loreauville, Louisiana, as of and for the year ended June30, 2008, which collectively comprise the Village's basic financial statements as listed in the table ofcontents. These financial statements are the responsibility of the Village of Loreauville, Louisiana'smanagement. 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 Statesof America and the standards applicable to financial audits contained in Government Auditing Standards.issued by the Comptroller General of the United States. Those standards require that we plan and perform theaudit 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 financialstatements. An audit also includes assessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, the business-type activities, and each major fundof the Village of Loreauville, Louisiana, as of June 30, 2008, and the respective changes in financial positionand cash flows, where applicable, thereof for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated September12, 2008, on our consideration of the Village of Loreauville, Louisiana's internal control over financialreporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grantagreements and other matters. The purpose of that report is to describe the scope of our testing of internalcontrol over financial reporting and compliance and the results of that testing, and not to provide an opinionon the internal control over financial reporting or on compliance. That report is an integral part of an audit

Member of:AMERICAN INSTITUTE OfCERTIFIED PUBLIC ACCOUNTANTS

Member of:SOCIETY OF LOUISIANA

CERTIFIED PUBLIC ACCOUNTANTS

performed in accordance with Government Auditing Standards and important for assessing the results of ouraudit.

The required supplementary information on pages 31-33 is not a required part of the basic financialstatements but is supplementary information required by accounting principles generally accepted in theUnited States of America. We have applied certain limited procedures, which consisted principally ofinquiries of management regarding the methods of measurement and presentation of the requiredsupplementary information. However, we did not audit the information and express no opinion on it.

The Village of Loreauville has not presented management's discussion and analysis that theGovernmental Accounting Standards Board has determined is necessary to supplement, although not requiredto be part of, the basic financial statements.

Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the Village of Loreauville, Louisiana's basic financial statements. The othersupplementary information listed in the table of contents is presented for purposes of additional analysis andis not a required part of the basic financial statements. Such information has not been subjected to theauditing procedures applied in the audit of the basic financial statements and, accordingly, we express noopinion on it.

Kolder, Champagne, Slaven & Company, LLCCertified Public Accountants

Breaux Bridge, LouisianaSeptember 12,2008

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDEFINANCIAL STATEMENTS (GWFS)

VILLAGE OF LOREAUVILLE

Statement of Net AssetsJune 30, 2008

Governmental Business-TypeActivities Activities Total

ASSETSCurrent assets:

Cash and interest-bearing depositsReceivables, netInternal balancesDue from other governmental unitsPrepaid items

Total current assets

Noncurrent assets:Restricted cashCapital assets, net

Total noncurrent assets

Total assets

LIABILITIESCurrent liabilities:

Accounts payableAccrued liabilitiesBonds payable

Total current liabilities

Noncurrent liabilities:Customer deposits payableBonds payable

Total noncurrent liabilities

Total liabilities

NET ASSETSInvested in capital assets, net of related debtRestrictedUnrestricted

Total net assets

$ 451,37331,032

(114)3,3544,100

489,745

39,7581,026,358

1,066,116

1,555,861

4,603194

-

4,797

--

4,797

1,026,35839,758

484,948

$1,551,064

$ 16,08225,141

11425,175

1,302

67,814

59,3201,531,257

1,590,577

1,658,391

38,5454,826

17,000

60,371

24,592204,000228,592

288,963

1,327,25712,90229,269

$1,369,428

$ 467,45556,173

-28,529

5,402

557,559

99,0782,557,615

2,656,693

3,214,252

43,1485,020

17,000

65,168

24,592204,000

228,592

293,760

2,353,61552,660

514,217

$ 2,920,492

The accompanying notes are an integral part of this statement.

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FUND FINANCIAL STATEMENTS (FFS)

FUND DESCRIPTIONS

MAJOR FUNDSGeneral Fund

The General Fund is used to account for resources traditionally associated with governments which are not required tobe accounted for in another fund.

Special Revenue Fund

Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particularpurposes.

Sales Tax Fund -To account for the receipt and use of proceeds of the Village's 1 1/2% sales and use tax. These taxes may be used asdescribed in Note (8).

Enterprise Fund

Sewerage and Garbage Fund -To account for the provision of sewer, garbage, and recycling services to residents of the Village. All activitiesnecessary to provide such services are accounted for in this fund, including, but not limited to, administration,operations, maintenance, financing and related debt service, and billing and collection.


Balance SheetGovernmental Funds

June 30, 2008

ASSETS

Cash and interest-bearing depositsReceivables:

Taxes and licensesDue from other governmental unitsOther

Prepaid items

Total assets

LIABILITIES AND FUND BALANCES

Liabilities:Accounts payableDue to other funds

Total liabilities

Fund balances -Reserved for mosquito control/drainage improvementReserved for prepaid itemsUnreserved:

Unreserved, undesignated

Total fund balances

Total liabilities and fund balances

General

4,717

39,7583,806

88,265

131,829

Sales TaxSpecial

Revenue

$ 4,603 $114

294

392,777

393,071

TotalGovernmental

Funds

$ 117,258 $ 373,873 $ 491,131

$

-3,35412,1283,806

136,546

18,816-88294

$ 393,071

18,8163,35412,2164,100

$ 529,617

4,603114

4,717

39,7584,100

481,042

524,900

$ 136,546 $ 393,071 $ 529,617



Reconciliation of the Governmental Funds Balance Sheetto the Statement of Net Assets

June 30, 2008

Total fund balances for governmental funds at June 30, 2008 $ 524,900

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

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

Land $23,027Buildings and improvements, net of $84,411 accumulated depreciation 70,880Vehicles, net of $137,592 accumulated depreciation 82,544Furniture and equipment, net of $75,185 accumulated depreciation 43,756Water system, net of $827,575 accumulated depreciation 511,500Infrastructure, net of $84,794 accumulated depreciation 294,651 1,026,358

General long-term debt of governmental activities is not payable fromcurrent resources and, therefore, not reported in the funds. This debt is:

Compensated absences payable (194) 1,026,164

Total net assets of governmental activities at June 30, 2008 $1,551,064


10


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

For the Year Ended June 30, 2008

Revenues:TaxesLicenses and permitsIntergovernmentalMiscellaneous

Total revenues

Expenditures:Current -

General governmentPublic safetyPublic works

Capital outlayTotal expenditures

Excess (deficiency) of revenuesover expenditures

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

Total other financing sources (uses)

Net changes in fund balances

Fund balances, beginning

Fund balances, ending

General

$ 59,62551,14535,744

4,011150,525

(98,703)

Sales TaxSpecial

Revenue

$ 188,612

7,845196,457

74,61259,50938,36676,741

249,228

16,849---

16,849

179,608

Total

$ 248,23751,14535,74411,856

346,982

91,46159,50938,36676,741

266,077

80,905

76,844-

76,844

(21,859)

153,688

(152,933)

(152,933)

26,675

366,396

76,844(152,933)(76,089)

4,816

520,084

$ 131,829 $ 393,071 $ 524,900


11


Reconciliation of the Statement of Revenues, Expenditures, andChanges in Fund Balances of Governmental Funds

to the Statement of ActivitiesFor the Year Ended June 30, 2008

Total net changes in fund balances at June 30, 2008 perStatement of Revenues, Expenditures and Changes in Fund Balances $ 4,816

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

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

Capital outlay which is considered expenditures on Statementof Revenues, Expenditures and Changes in Fund Balances $ 76,741

Depreciation expense for the year ended June 30, 2008 (86,822) (10,081)

Governmental funds record long-term debt in the General Long-Term Debt Account Group as opposed to recording debt activity in thefund financial statements. However, in the statement of activities, thedebt and related expenses are reported. 456

Total changes in net assets at June 30, 2008 per Statement of Activities $ (4,809)


12


Statement of Net AssetsProprietary Fund

June 30, 2008

Sewerage andGarbage Fund

ASSETSCurrent assets:

Cash and interest-bearing deposits $ 16,082Receivables:

Accounts (net) 25,141Grant 25,175

Due from other funds 114Prepaid items 1,302

Total current assets 67,814Noncurrent assets:

Restricted cash 59,320Capital assets, net of accumulated depreciation 1,531,257

Total noncurrent assets 1,590,577

Total assets 1,658,391

LIABILITIESCurrent liabilities:

Accounts payable and accrued expenses 38,545Revenue bonds payable 17,000Accrued interest payable 4,826Customers' deposits 24,592

Total current liabilities 84,963

Noncurrent liabilities:Revenue bonds payable 204,000

Total liabilities 288,963

NET ASSETSInvested in capital assets, net of related debt 1,327,257Restricted 12,902Unrestricted 29,269

Total net assets $ 1,369,428


13

VILLAGE OF LOREAUV1LLE

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

For the Year Ended June 30, 2008Sewerage andGarbage Fund

Operating revenues:Charges for services:

Sewerage $ 68,306Garbage 36,322Recycling 9,019Fire protection 9,152

Penalties 3,306

Total operating revenues 126,105

Operating expenses:Auto and truck 1,919Chemicals and chlorine 1,846Depreciation 38,609Garbage collection 29,743Insurance 7,144Legal and accounting 3,308Office supplies 3,612Miscellaneous 4,640Professional services 1,076Recycling fees 8,041Salaries 27,544Sewer analysis 2,740Supplies 187Payroll taxes 2,155Retirement 207

Telephone and utilities 33,757Total operating expenses 166,528

Operating loss (40,423)

Nonoperating revenues (expenses):Grant revenue 251,824Property taxes 7,260Interest on bonds (11,236)Loss on asset disposal (10,370)Miscellaneous 115

Total nonoperating revenues 237,593

Income before transfers 197,170

Operating transfers:Transfers in 85,243Transfers out (9,154)

Total operating transfers in 76,089

Change in net assets 273,259

Net assets, beginning 1,096,169

Net assets, ending $ 1,369,428


14


Statement of Cash FlowsProprietary Fund


Cash flows from operating activities:Receipts from customersPayments to suppliersPayments to employees

Net cash provided by operating activities

Cash flows from noncapital financing activities:Operating transfers in from other fundsAd valorem tax receiptsOther receipts

Net cash provided by noncapital financing activities

Cash flows from capital and related financing activities:Principal paid on revenue bondsInterest paid on revenue bondsGrant proceedsAcquisition of capital assets

Net cash used by capital and related financing activities

Cash flows from investing activities

Net increase in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period


$ 129,225(62,199)(27,544)

39,482

75,4427,260

117

82,819

(17,000)(11,236)226,649

(298,367)

(99,954)

22,347

53,055

$ 75,402

(continued)

15


Statement of Cash FlowsProprietary Fund (Continued)


Reconciliation of operating income to net cash provided byoperating activities:Operating lossAdjustments to reconcile operating loss to net cash used byoperating activities:DepreciationChanges in current assets and liabilities:

Decrease in accounts receivableIncrease in accounts payable and accrued liabilities

Total adjustments

Net cash provided by operating activities

Reconciliation of cash and cash equivalents per statementof cash flows to the balance sheet:

Cash and cash equivalents, beginning of period -Cash - unrestrictedCash - restricted

Total cash and cash equivalents

Cash and cash equivalents, end of period -Cash - unrestrictedCash - restricted

Total cash and cash equivalents

Net increase


$ (40,423)

38,609

3,12038,176

79,905

$ 39,482

28452,771

53,055

16,08259,320

75,402

22,347


16


Notes to Basic Financial Statements

(1) Summary of Significant Accounting Policies

The Village operates under the Lawrason Act. The act provides for the Mayor-Board ofTrustees form of government. The Village's operations include police and fire protection, streets anddrainage, and general administration services. The Village owns and operates one enterprise activity,a sewerage and garbage fund, which provides sewerage and garbage services.

The accompanying financial statements of the Village of Loreauville (Village) have beenprepared in conformity with generally accepted accounting principles (GAAP) as applied togovernmental units. GAAP includes all relevant Governmental Accounting Standards Board (GASB)pronouncements. In the government-wide financial statements and the fund financial statements forthe proprietary funds, Financial Accounting Standards Board (FASB) pronouncements andAccounting Principles Board (APB) opinions on or before November 30, 1989, have been appliedunless those pronouncements conflict with or contradict GASB pronouncements, in which case,GASB prevails. Although the Village has the option to apply FASB pronouncements issued after thatdate, the Village has chosen not to. The accounting and reporting framework and the more significantaccounting policies are discussed in subsequent subsections of this note.

A. Reporting Entity

In evaluating how to define the Village for financial reporting purposes,management has considered all potential component units. The decision to include apotential component unit in the reporting entity was made by applying the criteria setforth in Governmental Accounting Standards Board (GASB) Statement No. 14. Thebasic, but not the only, criterion for including a potential component unit within thereporting entity is the governing body's ability to exercise oversight responsibility.The most significant manifestation of this ability is financial interdependency. Othermanifestations of the ability to exercise oversight responsibility include, but are notlimited to, the selection of governing authority, the designation of management, theability to significantly influence operations and accountability for fiscal matters. Theother criterion used to evaluate potential component units for inclusion or exclusionfrom the reporting entity is the existence of special financing relationships, regardlessof whether the Village is able to exercise oversight responsibilities. The Village has nocomponent units.

B. Basis of Presentation

Government-Wide Financial Statements (GWFS)

The statement of net assets and statement of activities display informationabout the reporting government as a whole. They include all funds of the reportingentity. The statements distinguish between governmental and business-type activities.Governmental activities generally are financed through taxes, intergovernmentalrevenues, and other nonexchange revenues. Business-type activities are financed inwhole or in part by fees charged to external parties for goods or services.

17


Notes to Basic Financial Statements (Continued)

The statement of activities presents a comparison between direct expensesand program revenues for the business-type activities of the Village and for eachfunction of the Village's governmental activities. Direct expenses are those that arespecifically associated with a program or function and, therefore, are clearlyidentifiable to a particular function. Program revenues include (a) fees, fines, andcharges paid by the recipients of goods or services offered by the programs, and (b)grants and contributions that are restricted to meeting the operational or capitalrequirements of a particular program. Revenues that are not classified as programrevenues, including all taxes, are presented as general revenues.

Fund Financial Statements

The accounts of the Village 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 intendedpurpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds ismaintained consistent with legal and managerial requirements.

The various funds of the Village are classified into two categories:governmental and proprietary (enterprise). The emphasis on fund financial statementsis on major governmental and enterprise funds, each displayed in a separate column.A fund is considered major if it is the primary operating fund of the Village or meetsthe following criteria:

a. Total assets, liabilities, revenues, or expenditures/expenses ofthat individual governmental or enterprise fund are at least 10percent of the corresponding total for all funds of that categoryor type: and

b. Total assets, liabilities, revenues, or expenditures/expenses of theindividual governmental or enterprise fund are at least 5 percentof the corresponding total for all governmental and enterprisefunds combined.

All funds of the Village are considered to be major funds and are describedbelow:

Governmental Funds -

General Fund -

The General Fund is the general operating fund of the Village. It is used toaccount for all financial resources except those required to be accounted for inanother fund.

18



Special Revenue Fund -

Special revenue funds are used to account for the proceeds of specificrevenue sources (other than expendable trusts or major capital projects) that arelegally restricted to expenditures for specified purposes.

Sales Tax Fund -

To account for the receipt and use of proceeds of the Village's 1 1/2% salesand use tax. These taxes may be used as described in Note (8).

Proprietary Fund -

Sewerage and Garbage Fund -

The sewerage and garbage fund is used to account for the provision of sewer,garbage, and recycling services to residents of the Village. Proprietary fundsdistinguish operating revenues and expenses from nonoperating items. Operatingrevenues are derived from charges for services. All other revenues are reported asnonoperating.

C. Measurement Focus/Basis of Accounting

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

Measurement Focus

On the government-wide statement of net assets and the statement ofactivities, both governmental and business-type activities are presented using theeconomic 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 asappropriate:

a. All governmental funds utilize a "current financial resources"measurement focus. Only current financial assets and liabilities aregenerally included on their balance sheets. Their operating statementspresent sources and uses of available spendable financial resourcesduring a given period. These funds use fund balance as their measure ofavailable spendable financial resources at the end of the period.

b. The proprietary fund utilizes an "economic resources" measurementfocus. The accounting objectives of this measurement focus are thedetermination of operating income, changes in net assets (or costrecovery), financial position, and cash flows. All assets and liabilities

19



(whether current or noncurrent) associated with their activities arereported. 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 basisof accounting. Under the accrual basis of accounting, revenues are recognized whenearned and expenses are recorded when the liability is incurred or economic assetused. Revenues, expenses, gains, losses, assets, and liabilities resulting fromexchange and exchange-like transactions are recognized when the exchange takesplace. Revenues, expenses, gains, losses, assets, and liabilities resulting fromnonexchange transactions are recognized in accordance with the requirements ofGASB Statement No. 33 "Accounting and Financial Reporting for NonexchangeTransactions."

In the fund financial statements, governmental funds are presented on themodified accrual basis of accounting. Under this modified accrual basis ofaccounting, revenues are recognized when "measurable and available." Measurablemeans knowing or being able to reasonably estimate the amount. Available meanscollectible within the current period or within 60 days after year-end. Expenditures(including capital outlay) are recorded when the related fund liability is incurred,except for general obligation bond principal and interest which are reported whendue. The proprietary fund utilizes the accrual basis of accounting. Under the accrualbasis of accounting, revenues are recognized when earned and expenses are recordedwhen the liability is incurred or economic asset used. When both restricted andunrestricted resources are available for use, it is the Village's policy to use restrictedresources first, then unrestricted resources as they are needed.

D. Assets. Liabilities and Equity

Cash, interest-bearing deposits, and investments

For purposes of the Statement of Net Assets, cash and interest-bearingdeposits include all demand accounts, savings accounts, and certificates of depositsof the Village. For the purpose of the proprietary fund Statement of Cash Flows,"cash and cash equivalents" include all demand and savings accounts, and certificatesof deposit or short-term investments with an original maturity of three months or less.

Interfund receivables and payables

During the course of operations, numerous transactions occur betweenindividual funds that may result in amounts owed between funds. Those related togoods and services type transactions are classified as "due to and from other funds."Short-term interfund loans are reported as "interfund receivables and payables."Long-term interfund loans (noncurrent portion) are reported as "advances from and toother funds." Interfund receivables and payables between funds within governmentalactivities are eliminated in the Statement of Net Assets.

20



Receivables

In the government-wide statements, receivables consist of all revenuesearned at year-end and not yet received. Major receivable balances for thegovernmental activities include sales and use taxes and franchise taxes. Business-typeactivities report customer's utility service receivables as their major receivables.

Capital Assets

The accounting treatment over property, plant, and equipment (capital assets)depends on whether they are reported in the government-wide or fund financialstatements.

In the government-wide financial statements, capital assets are capitalized athistorical cost, or estimated historical cost if actual is unavailable, except for donatedfixed assets, which are recorded at their estimated fair value at the date of donation.The costs of normal maintenance and repairs that do not add to the value of the assetor materially extend asset lives are not capitalized. The Village's threshold forcapitalization is $500.

Depreciation of all exhaustible capital assets is recorded as an allocatedexpense in the Statement of Activities, with accumulated depreciation reflected in theStatement of Net Assets. Depreciation is provided over the assets' estimated usefullives using the straight-line method of depreciation. The range of estimated usefullives by type of asset is as follows:

Buildings and improvements 10-40 yearsVehicles 5-15 yearsFurniture and equipment 5-25 yearsWater and sewer systems 10-50 yearsInfrastructure 10-40 years

In the fund financial statements, capital assets used in governmental fundoperations are accounted for as capital outlay expenditures of the governmental fundupon acquisition. Capital assets used in proprietary fund operations are accounted forthe same as in the government-wide statements.

Prior to the adoption of GASB 34, it was the Village's policy not to recordinfrastructure; however, these assets have been included in the accompanyingfinancial statements valued at historical cost.

Restricted Assets

Restricted assets include cash, interest-bearing deposits, and investments thatare legally restricted as to their use. The restricted assets are related to mosquitocontrol tax revenues not yet spent in the governmental activities and to the revenuebond accounts and utility meter deposits in the business-type activities.

21



Long-term debt

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

All long-term debt to be repaid from governmental and business-typeresources is reported as liabilities in the government-wide statements.

Long-term debt for governmental funds is not reported as liabilities in thefund financial statements. The debt proceeds are reported as other financing sourcesand payment of principal and interest reported as expenditures. The accounting forproprietary fund long-term debt is the same in the fund statements as it is in thegovernment-wide statements.

Compensated Absences

Employees of the Village earn annual and sick leave in varying amountsdepending upon length of service. At the end of each year, employees may carryforward annual and sick leave earned but not taken. Unused annual leave is paid toan employee upon retirement at hourly rates being earned by that employee uponseparation. Unused sick leave is not paid.

Equity Classifications

In the government-wide statements, equity is classified as net assets anddisplayed in three components:

a. Invested in capital assets, net of related debt - Consists of capital assetsincluding restricted capital assets, net of accumulated depreciation andreduced by the outstanding balances of any bonds, mortgages, notes, orother borrowings that are attributable to the acquisition, construction, orimprovement of those assets.

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

c. Unrestricted net assets - All other net assets that do not meet thedefinition of "restricted" or "invested in capital assets, net of relateddebt."

In the fund statements, governmental fund equity is classified as fundbalance. Fund balance is further classified as reserved and unreserved, withunreserved further split between designated and undesignated. Proprietary fundequity is classified the same as in the government-wide statements.

22



E. Budget and Budgetary Accounting

The Village follows these procedures in establishing the budgetary datareflected in the financial statements:

1. The municipal clerk prepares a proposed budget and submits this to theMayor and Board of Aldermen at least fifteen days prior to the beginning ofthe fiscal year. The operating budget includes proposed expenditures and themeans of financing them. Since the proposed expenditures are less than$500,000, public participation in the budgetary process is not required.

2. The budget is adopted through passage of a resolution prior to thecommencement of the fiscal year for which the budget is being adopted.

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

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

5. Budgets for the General and Special Revenue Funds are adopted on a basisconsistent with generally accepted accounting principles (GAAP).

F. Capitalization of Interest Expense

Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.Total interest incurred for the year ended June 30, 2008 was $11,236. This entireamount was charged to expense.

G. Use of Estimates

The preparation of financial statements in conformity with generallyaccepted accounting principles requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure ofcontingent assets and liabilities at the date of the financial statements and the reportedamounts of revenues and expenditures during the reporting period. Actual resultscould differ from those estimates.

23



(2) Cash and Interest-Bearing Deposits

Under state law, the Village may deposit funds within a fiscal agent bank organized under thelaws of the State of Louisiana, the laws of any other state in the Union, or the laws of the UnitedStates. The Village may invest in certificates and time deposits of state banks organized underLouisiana law and national banks having principal offices in Louisiana. At June 30, 2008, the Villagehas cash and interest-bearing deposits (book balances) totaling $566,533.

These deposits are stated at cost, which approximates market. Custodial credit risk is the riskthat in the event of a bank failure, the Village's deposits may not be returned to it. The Village'spolicy, by state law, is that all deposits must be secured by federal deposit insurance or the pledge ofsecurities owned by the fiscal agent bank. The market value of the pledged securities plus the federaldeposit insurance must at all times equal the amount on deposit with the fiscal agent bank. Thesesecurities are held in the name of the pledging fiscal agent bank in a holding or custodial bank that ismutually acceptable to both parties. Deposit balances (bank balances) at June 30, 2008 are secured asfollows:

Bank balances $ 426,676

At June 30, 2008 the deposits are secured as follows:

Insured $ 216,251Uninsured and collateral held by pledging bank 210.425

not in Village's name

Total $ 426,676

24



(3) Receivables

Receivables at June 30, 2008 of $56,173 consist of the following:

Sewerageand

General Sales Tax Garbage TotalAccounts $ $ $ 25,373 $ 25,373Allowance - - (232) (232)Taxes:

Sales tax - 18,816 - 18,816Franchise tax 9,662 - - 9,662

Fines, licenses, etc. 1,373 - - 1,373Other 1,093 88 - 1,181

Totals $ 12,128 $ 18,904 $ 25,141 $ 56,173

(4) Due from Other Governmental Units

Amounts due from other governmental units at June 30, 2008 consisted of the following:

General Fund:Amount due from the Iberia Parish Council for fire insurance tax. $ 3 354

Sewer Fund:

Amount due from LCDBG $ 25,175

25



(5) Capital Assets

Capital asset activity for the year ended June 30, 2008 was as follows:

Capital assets not being depreciated:LandConstruction in progress

Total assets not being depreciated

Capital assets being depreciated:Buildings and improvementsVehiclesFurniture and equipmentWater systemInfrastructure

Total assets being depreciated

Less accumulated deprecriation:Buildings and improvementsVehiclesFurniture and equipmentWater systemInfrastructure

Total accumulated depreciation

Governmental activities, net

Business-type activities:Capital assets not being depreciated:

LandConstruction in progress

Total assets not being depreciated

Capital assets being depreciated:Sewer plantMachinery and equipment

Total assets being depreciated

Less accumulated:Sewer plantMachinery and equipment

Total accumulated depreciation

Business-type activities, net

$ 23,02735,33758,364

155,291220,136118,941

1,339,075267,367

2,100,810

80,268123,34565,691778,04375,388

1,122,735

$ 1,036,439

$ 5,00030,215

35,215

1,847,1244,034

1,851,158

601,8752,627

604,502

$ --_

---

112,078112,078

4,14314,2479,49449,5329,40686,822

$ 25,256

$ ---

328,582-

328,582

38,283327

38,610

$ - $ 23,027(35,337)(35,337) 23,027

155,291220,136118,941

1,339,075379,445

2,212,888

84,411137,59275,185827,57584,794

1,209,557$(35,337) $ 1,026,358

$ - $ 5,000(30,215)

(30,215) 5,000

(15,878) 2,159,8284,034

(15,878) 2,163,862

(5,507) 634,6512,954

(5,507) 637,605$ 1,281,871 $ 289,972 $(40,586) $ 1,531,257

26



Depreciation expense was charged to governmental activities as follows:

General government $ 2,258Public safety 22,720Public works 61,844

Total depreciation expense $ 86,822

(6) Accounts. Salaries, and Other Payables

The accounts, salaries, and other payables consisted of the following at June 30, 2008:


Accounts $ 4,603 $ 38,545 $ 43,148Compensated absences payable 194 - 194Accrued interest payable - 4,826 4,826

Totals $ 4,797 $ 43,371 $ 48,168

(7) Changes in Long-Term Debt

The following is a summary of long-term debt transactions of the Village of Loreauville,Louisiana for the year ended June 30, 2008. The revenue bonds relate to business-type activities, andthe payments are made from the enterprise fund. In the past, payments on long-term debt thatpertained to the Village's governmental activities were made by the governmental funds, and thosethat pertained to the business-type activities were made by the enterprise fund.

Long-term debt at July 1, 2007 $238,000

Debt assumedDebt retired (17.000^

Long-term debt at June 30,2008

Long-term debt at June 30, 2008 is comprised of the following:

$300,000 Sewer Revenue Bonds, Series2003, due in annual installments of $14,000to $28,000; from August 1, 2003 toFebruary 1, 2018; interest rate of 4.95percent; secured by income and revenuesof the sewer system.

27



The annual requirements to amortize all debt outstanding at June 30, 2008 are as follows:

Year EndingJune 30, Principal Interest Total

2009 $ 17,000 $ 10,940 $ 27,9402010 18,000 10,098 28,0982011 19,000 9,207 28,2072012 20,000 8,267 28,2672013 21,000 7,277 28,277

2014-2018 126,000 19,305 145,305

Totals $ 221,000 $ 65,094 $ 286,094

(8) Dedication of Sales and Use Tax Revenues

Proceeds of a 1 1/2 percent sales and use tax were dedicated to the following purposes:

A. 1% is for constructing and maintaining sewerage, drainage, street and otherworks of permanent public improvement in the Village, title to which shall be in thepublic. On November 21, 1987, the voters of the Village approved a rededication ofthe use of the sales taxes collected which now permits the use of these revenues topay for any expenditures lawfully incurred.

B. An additional !/2% was passed effective January 1, 1995 to be dedicated andused, in supplement of other sales tax revenues, to operate and maintain theLoreauville Police Department. In November 2002, the voters of the Villageapproved the rewording of the dedication to include contracting with the Iberia ParishSheriffs Office in lieu of operating the Loreauville Police Department.

(9) Flow of Funds: Restrictions on Use - Utilities Revenues

Under the terms of the bond indenture on outstanding Sewer Revenue Bonds dated April 14,2003, all income and revenues derived from the operation of the sewer system are pledged anddedicated to the retirement of said bonds, and are to be set aside into the following special funds, afterpayment of the reasonable and necessary operating expenses of maintaining the system:

A. Sewer Revenue Bond and Interest Sinking Fund: Transfer monthly a sumequal to 1/12 of the principal and 1/6 of the interest due on the next paymentdate.

B. Sewer Depreciation and Contingency Fund: Transfer $300 monthly.

28



(10) Interfund Transactions

A. Receivables and Payables

Interfund receivables and payables consisted of the following at June 30, 2008:

Interfund InterfundReceviables Payables

Major Funds:Governmental Fund:

General Fund $ - $ 114Enterprise Fund:

Sewerage and Garbage Fund 114 -

Total $ 114 $ U4

Miscellaneous items were not yet paid at year-end, causing the balances as notedabove. These are expected to be paid within the next fiscal year.

B. Interfund transfers

Interfund transfers consisted of the following at June 30, 2008:

Interfund InterfundTransfers In Transfers Out

Major Funds:Governmental Funds:

General Fund $ 76,844 $Sales Tax Special Revenue Fund - 152,933

Enterprise Fund:Sewerage and Garbage Fund 85,243 9,154

Total $ 162,087 $ 162,087

Transfers are used to (1) move revenues from the fund that statute or budget requiresto collect them to the fund that statute or budget requires to expend them, and (2) useunrestricted revenues collected in one fund to finance various programs accounted for inother funds in accordance with budgetary authorizations.

(11) Ad Valorem Taxes

For the year ended June 30, 2008, taxes of 7.78 mills were levied on property with assessedvaluations totaling $2,659,704 and were dedicated as follows:

General alimony 5.05 millsSewerage tax 2.73 mills

29



Total taxes levied were $20,690 of which all had been collected at June 30, 2008. The taxesare levied and assessed around September or October of each year and tax bills are mailed inNovember. Billed taxes are due by December 31 and become delinquent if unpaid as of January 1.

(12) Restricted Assets

Restricted assets were composed of checking and savings accounts at June 30, 2008 and wererestricted as follows:


Mosquito control $ 39,758 $ - $ 39,758Bond reserve, sinking, and contingency funds - 35,098 35,098Customers' deposits - 24,222 24,222

$ 39,758 $ 59,320 $ 99,078

(13) Compensation of Village Officials

A detail of compensation paid to Village officials for the year ended June 30, 2008 follows:

Albert A. Broussard, Jr., Mayor $ 12,000Aldermen:

MarkLandry 2,700Tony Broussard 2,700Sandy Sonnier 2,700

Total $ 20,100

(14) Risk Management

The Village is exposed to risks of loss in the areas of general and auto liability, propertyhazards, health care, and workers1 compensation. Those risks are handled by purchasing commercialinsurance. There have been no significant reductions in insurance coverage during the current fiscalyear nor have settlements exceeded coverage during the current year or preceding two years.

(15) Lease of Water System

The Village owns a water system which is being leased to Louisiana Water Company(LAWCO). All expenses related to running the system are borne by LAWCO and all revenuesderived from providing the service to customers is the property of LAWCO. The Village receiveslease revenue annually. The revenue for the current year related to this lease was $2,020.

30

REQUIREDSUPPLEMENTARY INFORMATION

31

VILLAGE OF LOREAUVILLEGeneral Fund

Budgetary Comparison ScheduleFor the Year Ended June 30, 2008

Revenues:TaxesLicenses and permitsIntergovernmentalFinesMiscellaneous

Total revenues

Expenditures:General governmentPublic safety - PolicePublic worksCapital outlay

Total expenditures

Deficiency of revenuesover expenditures

Other financing sources:Transfer from Sales Tax FundTransfer from Utility Fund

Total other financing sources

Net change in fund balances

Fund balance, beginning

Fund balance, ending

OriginalBudget

$ 64,74540,38529,900

1004,122

139,252

90,91258,73447,64310,000

207,289

FinalBudget

$ 59,25342,36532,890

1003,722

138,330

88,15359,73441,24376,000

265,130

Actual

$ 59,62551,14535,744

873,924

150,525

74,61259,50938,36676,741

249,228

Variance withFinal Budget

Positive(Negative)

$ 3728,7802,854

(13)202

12,195

13,541225

2,877(741)

15,902

(68,037) (126,800) (98,703) 28,097

66,0009,180

75,180

7,143

150,021

118,0009,180

127,180

380

153,688

67,6909,15476,844

(21,859)

153,688

(50,310)(26)

(50,336)

(22,239)

_

$ 157,164 $ 154,068 $ 131,829 $ (22,239)

32

VILLAGE OF LOREAUVILLESales Tax Special Revenue Fund

Budgetary Comparison ScheduleFor the Year Ended June 30, 2008

Revenues:TaxesMiscellaneous - interest and other

Total revenues

Expenditures:General government

ConventionsDuesInsuranceLegal and accountingSalaries and payroll taxesOffice expenseCollection fees

Total expenditures

Excess ofrevenuesover expenditures

Other financing uses:Transfer out to General FundTransfer out to Sewer Fund

Total other financing uses

Net change in fund balances

Fund balance, beginning

Fund balance, ending

OriginalBudget

$ 160,0008,700

168,700

500150

1,8003,0008,275

6202,179

16,524

FinalBudget

$ 160,0008,700

168,700

500150

4,2303,3108,275

6202,179

19,264

Actual

$ 188,6127,845

196,457

1504,0533,3087,551

4811,306

16,849


Positive(Negative)

$ 28,612(855)

27,757

500-177

2724139873

2,415

152,176 149,436 179,608 30,172

(66,000)(166,880)

(232,880)

(80,704)

244,570

(118,000)(138,380)

(256,380)

(106,944)

366,396

(67,690)(85,243)

(152,933)

26,675

366,396

50,31053,137

103,447

133,619

-

$ 163,866 $ 259,452 $ 393,071 $ 133,619

33

OTHER SUPPLEMENTARY INFORMATION

34


Budgetary Comparison Schedule - RevenuesFor the Year Ended June 30, 2008

Taxes:General alimonyFranchise taxes

Total taxes

Licenses and permits

Budget

13,43045,82359,253

42,365

Actual

13,43046,195

59,625

51,145


Positive(Negative)

372

372

8,780

Intergovernmental:Beer tax2% fire insurance taxMosquito control taxTobacco tax

Total intergovernmental

3,6402,500

26,750-

32,890

3,6473,869

26,7621,466

35,744

71,369

121,4662,854

Fines

Miscellaneous:InterestWater leaseOther

Total miscellaneous

Total revenues

100 87

962,0001,6263,722

1702,0201,7343,924

$ 138,330 $ 150,525

(13)

7420108202

$ 12,195

35


Budgetary Comparison Schedule - ExpendituresFor the Year Ended June 30, 2008

Current:General government -

AdvertisingConventionsDuesInsuranceLegal and accountingMayor and councilMiscellaneousPayroll taxesRepairs and maintenanceSalariesUtilitiesProfessional feesAuto and truckOffice expense

Total general government

Public safety -Law enforcementAuto and truckInsuranceRepairs and maintenanceOffice ExpensesUtilities

Total public safety

Budget

$ 7201,650

42025,811

6,10020,325

504,291

50014,9766,4001,800

3604,750

88,153

45,0003,2459,000

360569

1,560. 59,734

Actual

$ 5511,481

38617,3396,103

20,1003

2,629401

14,5396,281

556352

3,89174,612

45,0003,2678,880

604187

1,57159,509


Positive(Negative)

$ 16916934

8,472(3)

22547

1,66299

437119

1,2448

85913,541

(22)120

(244)382(11)225

(continued)

36


Budgetary Comparison Schedule - Expenditures (Continued)For the Year Ended June 30, 2008

Public works -Auto and truckPayroll taxes

MiscellaneousRepairs and maintenanceRetirementSalariesSuppliesUtilities

Total public works

Capital outlay -SidewalksDrainage

Total capital outlay

Total expenditures

Budget Actual

2,400-120

1,200-

18,1234,00015,400

41,243

2,8291,016

534935207

13,2762,92916,640

38,366

48,000

28,000

76,000

48,600

28,141

76,741

$ 265,130 $ 249,228


Positive(Negative)

(429)(1,016)

(414)265(207)4,8471,0710,240)

2,877

(600)

(HI)(741)

$ 15,902

37

INTERNAL CONTROL,

COMPLIANCE

AND

OTHER MATTERS

38

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLCC. Burton Kolder, CPA'Russell F. Champagne, CPA*Victor R. Slaven. CPA-P. Troy Courvitt*. CPA'Gerald A Thibodeaux. Jr.. CPA*Robert S. Carter. CPA*Arthur R. Mixon. CPA'

Tynes E. Mixon. Jr.. CPAAllen J. LaBry. CPAAlbert R. Leger. CPA,PFS,CSA*Penny Angella Scruggins, CPAChnstine L. Cousin. CPAMary T. Thibodeaux. CPAMarshall VY Guidry. CPAAlan M. Taylor, CPAJames R. Roy. CPARobert J. Metz, CPAKelly M. Doucat, CPACheryl L. Bartley. CPA. CVAMandy 8 Sett. CPAPaul L Delcambre, Jr. CPA

Retired:Conrad O. Chapman, CPA* 2006Harry J- Clostio, CPA 2007

• A Profusion!) Aceoufltino Corponlkm


P.O. BOX 250Breaux Bridge, LA 70517

Phone (337) 332-4020Fax (337) 332-2867

OFFICES

163 South Beadle Rd.Lafayette. LA 70508

Phone (337) 232-4141Fax (337) 232-6660

113 EastBridgeSt, 133 East WaddiltSLBreaux Bridge, LA 70517 Marksvitlv, LA 71351Phone (337) 332-4020 Phone (318) 253-3252Pax {337) 332-2867 Fax (316) 253-8681

1234 David Dr. Ste 203 406 West Cotton StreetMorgan City. LA 70380 Vilto Platte. LA 70586Phorw (985) 384-2020 Phone (337) 363-2792Fax (985) 384-3020 Fax (337) 363-3049

332 West Sixth Avenue 200 South Main StreetOberiin, LA 70655 Abbeville. LA 70510Phone (337) 639-4737 P hone (337) 893-7944Fax (337) 639-4568 Fax (337) 893-7946

REPORT ON INTERNAL CONTROL OVERFINANCIAL REPORTING AND ON COMPLIANCEAND OTHER MATTERS BASED ON AN AUDIT OF

450 East Main StreetNew Iberia, LA 70560Phone (337) 367-9204Fax (337) 367-9208

1013 Main StreetFranklin. LA 70538

Phone (337) 828-0272Fax (337) 828-0290

WEB SITE;WWW.KCSRCPAS.COM

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITH GOVERNMENT AUDITING STANDARDS

The Honorable Albert A. Broussard, Mayorand Members of the Board of Aldermen

Village of Loreauville, Louisiana

We have audited the accompanying financial statements of the governmental activities, the business-type activities, and each major fund of the Village of Loreauville, Louisiana as of and for the year ended June30, 2008, which collectively comprise the Village of Loreauville, Louisiana's basic financial statements andhave issued our report thereon dated September 12, 2008. We conducted our audit in accordance withauditing standards generally accepted in the United States of America and the standards applicable tofinancial audits contained in Government Auditing Standards, issued by the Comptroller General of theUnited States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the Village of Loreauville, Louisiana's internalcontrol over financial reporting as a basis for designing our auditing procedures for the purpose of expressingour opinions on the financial statements, but not for the purpose of expressing an opinion on the effectivenessof the Village of Loreauville, Louisiana's internal control over financial reporting. Accordingly, we do notexpress an opinion on the effectiveness of the Village of Loreauville, Louisiana's internal control overfinancial reporting.

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

A control deficiency exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent or detect misstatements ona timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, thatadversely affects the Village of Loreauville, Louisiana's ability to initiate, authorize, record, process, or report

Member of:AMERICAN INSTITUTE OFCERTIFIED PUBLIC ACCOUNTANTS

Member of:SOCIETY OF LOUISIANA


39

financial data reliably in accordance with generally accepted accounting principles such that there is morethan a remote likelihood that a misstatement of the Village of Loreauville, Louisiana's financial statementsthat is more than inconsequential will not be prevented or detected by the Village of Loreauville, Louisiana'sinternal control. We consider the deficiencies described in the accompanying schedule of prior and currentyear audit findings and management's corrective action plan as items 08-1 and 08-2 to be significantdeficiencies in internal control over financial reporting.

A material weakness is a significant deficiency, or combination of significant deficiencies, that resultsin more than a remote likelihood that a material misstatement of the financial statements will not be preventedor detected by the Village of Loreauville, Louisiana's internal control.

Our consideration of the internal control over financial reporting was for the limited purposedescribed in the first paragraph of this section and would not necessarily identify all deficiencies in theinternal control that might be significant deficiencies and, accordingly, would not necessarily disclose allsignificant deficiencies that are also considered to be material weaknesses. However, of the significantdeficiencies described above, we consider item 08-1 to be a material weakness.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Village of Loreauville, Louisiana'sfinancial statements are free of material misstatement, we performed tests of its compliance with certainprovisions of laws, regulations., contracts, and grant agreements, noncompliance with which could have adirect and material effect on the determination of financial statement amounts. However, providing anopinion on compliance with those provisions was not an objective of our audit, and accordingly, we do notexpress such an opinion. The results of our tests disclosed no instances of noncompliance or other mattersthat are required to be reported under Government Auditing Standards.

The Village of Loreauville, Louisiana's response to the findings identified in our audit is described inthe accompanying schedule of prior and current year audit findings and management's corrective action plan.We did not audit the Village of Loreauville, Louisiana's response and, accordingly, we express no opinion onit.

This report is intended solely for the information and use of management, the Board of Aldermen,others within the entity, and federal awarding agencies and pass-through entities and is not intended to be andshould not be used by anyone other than these specified parties. Although the intended use of this report maybe limited, under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as apublic document.

Kolder, Champagne, Slaven & Company, LLCCertified Public Accountants

Breaux Bridge, LouisianaSeptember 12,2008

40


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


I. Prior Year Findings:


07-1 - Inadequate Segregation of Accounting Functions

Finding: Due to the small number of employees the Village did not have adequate segregation offunctions within the accounting system.

Status: Unresolved. See item 08-1.

Compliance

07-2 - Noncompliance with Louisiana Local Government Budget Act

Finding: The actual expenditures in the General Fund for the year ended June 30, 2007 weresignificantly more than the budgeted expenditures. The unfavorable variance of approximately 20%exceeded the 5% variance allowed by State law.

Status: Resolved

Management Letter Items

There were no findings that were required to be reported at June 30, 2007.

n. Current Year Findings and Management's Corrective Action Plan:


08-1 - Inadequate Segregation of Accounting Functions

Finding: Due to the small number of employees the Village did not have adequate segregation offunctions within the accounting system.

Management's Corrective Action Plan: Mr. Albert A. Broussard, Jr., Mayor, determined that it is notcost effective to achieve complete segregation of duties within the accounting department. No plan isconsidered necessary.

(continued)

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Schedule of Prior and Current Year Audit Findings andManagement's Corrective Action Plan (continued)


08-2 - Inadequate Controls Over Financial Statement Preparation

Finding: The Village does not have a staff person who has the qualifications and training to applygenerally accepted accounting principles (GAAP) in recording the entity's financial transactions orpreparing its financial statements, including the related notes.

Management's Corrective Action Plan: Mr. Albert A. Broussard, Jr., Mayor, has evaluated the costvs. benefit of establishing internal controls over the preparation of financial statements in accordancewith GAAP, and determined that it is in the best interest of the government to outsource this task toits independent auditors, and to carefully review the draft financial statements and notes prior toapproving them and accepting responsibility for their contents and presentation.

Compliance

There are no findings that are required to be reported at June 30,2008.

Management Letter Items

There are no findings that are required to be reported at June 30, 2008.

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Documents

Village of Loreauville - app1.lla.state.la.usapp1.lla.state.la.us/PublicReports.nsf/BABE8EB0048CDBD5862574F… · VILLAGE OF LOREAUVILLE, LOUISIANA Financial Report Year Ended June