Washington Parish Fire Protection District No. 9 · WASHINGTON PARISH FIRE PROTECTION DISTRICT NO 9 WASHINGTON PARISH GOVERNMENT Mt Hermon, Louisiana Componont Unit Financial Statements

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REPORT

WASHINGTON PARISH FIRE PROTECTION DISTRICT NO 9 WASHINGTON PARISH GOVERNMENT

Mt Hermon, Louisiana

Componont Unit Financial Statements Asofancf for the Year

Ended December 31, 2011 with Supplemental Information Schedules

..jficcr provisions of s-aie la -v ttvs leport is a public ciorjti-ieiv AcoDV o the report has 'o<?.v\ SLibniitted to the oniity and o-i er appropriate public officials "1 he xe\i'.dV\ i5 available fcr public mspeciion at the Gatoh Rcu(:,-'cff'ceofihe LegislaiiveAuciifof ^m wiiere appropriate at the O\\\CQ oi rhe parish c erk of court

Release Date J U N 0 6 2 0 l 2

Minda (B, 9fly6oum

4imaed.£iaMa^&mfiamf 820 l l " ' AVENUE

FRANK1.INTON, LOUISIANA 70438

WASHINGTON PARISH FIRE PROTECTION DISTRICT NO. 9 WASHINGTON PARISH GOVERNMENT

Mt. Hermon, Louisiana

Component Unit Financial Statements As of and for the Year Ended December 31, 2011

With Supplemental Information Schedules

ACCOUNTANT'S COMPILATION

MANAGEMENTS DISCUSSION and ANALYSIS

BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements STATEMENT

Statement of Assets A

Statement of Activities B

Govemment Fund Financial Statements Balance C

Reconcilation of Governmental Fund Balance to the Govemment-Wide Statement of Assets D

Statement of Revenues, Expenditures, and Change in Fund Balance E

Reconcilation of Statement of Revenues, Expenditures, and Change in Fund Balance to the Government-Wide Statement of Activities F

NOTES TO FINANCIAL STATEMENTS

REQUIRED SUPPLEMENTAL INFORMATION (Part II)

Statement of Revenues, Expenditures, and Change SCHEDULE

m Fund Balance - Budget and Actual • General Fund I

OTHER SUPPLEMENTAL INFORMATION

Schedule of Board Memk)ers II

Page No

1

2-9

10

11

12

13

14

15

16-26

26

27

Minda (B. ^ySourn AimtJUd Aiaid£Uf C^mpa*Uf

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ACCOUNTANTS COMPILATION REPORT Board of Commissioners Washington Parish Fire Protection Distnct No 9 Mt Henmon. Louisiana

t have compiled the accompanying financial statements and supplemental information, contained in schedules I and II, as of and for the year ended December 31, 2011, for the Washington Parish Fire Protection Distnct No 9, a component unit of the Washington Pansh Government, in accordance with Statements on Standards for Accountng and Review Services issued by the Amencan Institute of Certified Public Accountants I have not audited or reviewed the accompanying financiai statements and, accordingly, do not express an opinion or any other form of assurance about whether the financiai statements are in accordance with accounting principles generally accepted in the United States of Amenca

Management is responsible for the preparation and fair presentation of the financiai statements in accordance with accounting pnnciples generally accepted in the United States of Amenca and for designing, implementing, and maintaining intemal control relevant to the preparation and fair presentation of the financiai statements

My responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the Amencan Institute of Certified Public Accountants The objective of a compilation is to assist management in presenting financiai information in the form of financial statements without undertaking to obtain or provide any assurance that there are no matenal modifications that should be made to the financiai statements

The management's discussion and analysis and budgetary companson information, on pages 2 through 9 and 26 through 27 are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board I have compiled the supplementary information from information that is the representation of management, without audit or review Accordingly, I do not express an opinion or any other form of assurance on the supplementary information

I am not independent with respect to Washington Pansh Fire Protection Distnct No 9

Minda B Rayboi/rn Certified Public Accountant March 26, 2012

Management's Discussion and Analysis

WASHINGTON PARISH FIRE PROTECTION DISTRICT #9 WASHINGTON PARISH GOVERNMENT



WASHINGTON PARISH FIRE PROTECTION DISTRICT No 9 is pleased to present its Annual Financial Report developed tn compliance with Governmental Accounting Standard Board Statement No 34, Baste Financial Statements - Management's Discussion and Analysis - For State and Local Governments (hereinafter refen'ed to as GASB 34) and related standards

The Management's Discussion and Analysis (MD&A) is designed to

1 assist the reader in focusing on significant financiai issues,

2 provide an overview of the District's financial activities,

3 identify changes in the Distnct's overall financiai position and results of operations and assist the user in determining whether the financial position has improved or detenorated as a result of the year's operations,

4 identify any significant venations from the ongmal, amended, and final budget amounts and include any currentiy known reasons for those variations that are expected to have a significant effect on future services or liquidity, and

5 identify individual fund issues or concerns

The infonnation contained within this MD&A should be considered only as part of a whole The reader of this statement should take time to read and evaluate all sections of this report, including the footnotes and other Required Supplemental Information (RSI) that are provided in addition to this MD&A

Overview of Annual Financial Report

Management's Discussion and Analysis (MD&A) serves as an introduction to the basic financial statements The Distnct's basic financiai statements are compnsed of three components 1) government-wide statements, 2) fund financiai statements, and 3) notes to the financial statements This report also contains other supplementary information in addition to the basic financiai statements themselves

Government-wide financial statements. The govemment -wide financiai statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to pnvate-sector business These financiai statements are presented using the accrual basis of accounting method




The statement of net assets presents information on all of the District's assets and liabilities, with difference between the two reported as net assets Over Ume, increases or decreases in nets assets may serve as a useful indicator of whether the financiai position of the Distnct is improving or detenorating

The Statement of Activities presents information showing how the government's net assets changed dunng the most recent fiscal year All changes in net assets are reported as soon as the underlying event giving nse to the change occurs, regardless of the timing of related cash flows

The Statement of Net Assets and The Statement of Activities display information about the District as a whole These statements distinguish between those activities of the Distnct that are governmental and those that are considered business type activities

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives The Distnct segregates transactions related to certain functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance The modified accrual basis of accounting is used by the governmental funds

Notes to financial statements. The notes to the financiai statements provide required disclosure essential to the understanding of the financiai statements The notes present information about the Distnct's accounting policies, significant account balances and activities, commitments, contingencies, and subsequent events, if any Supplementary information includes a comparative budget schedule

Financial Highlights

• At December 31,2011, the Distnct recorded total net assets (assets less liabilities) of $581,882 The largest component of net assets was "Net assets invested in capital assets, net of related debt" at $419,052 The Distnct has restncted assets of $22,074 for debt and unrestncted net assets of $140,756 available for current activities of the Distnct

• The most significant continuing revenue source was ad valorem taxes of $71,180 which is 80 55% of total revenues

• The Distnct's long-term debt at December 31, 2011 is $15,000 as compared to long-term debt at December 31, 2010 was $30,000 The decrease is due to regular payments of pnncipal of $15,000




Financial Analysis

Statement of Net Assets

Included below is a condensed Statement of Net Assets for the Distnct The condensed format allows the reader to view the overall financial position of the Distnct An explanation of the components of this statement is included immediately following the table

Condensed Balance Sheet

Assets Current and Other Assets Capital Assets, Net

Total Assets

Liabilities Current Liabilites Long- Temi Liabilites

Total Liabilites

Net Assets Invested in Capital Assets Net of Related Debt

Restncted for Debt Unrestncted Total Net Assets

December 31,

$

$

2010

293,984 360.907 654,891

17.716 30,000 47,716

315,907 26.438

264.830 607.175

December 31,

$

$

2011

165.386 449,052 614.438

17,556 15,000 32,556

419.052 22.074

140.756 581.882

Dollar Change

(128,598) 88.145 (40,453)

(160) (15.000) (15,160)

103,145 (4.364)

(124,074) (25,293)

Percentage Change

^ 3 74% 24 42% -6 18%

-0 90% -50 00% -31 77%

3265% -16 51% -46 85% -417%

See page 10 for more detailed Statement of Net Assets for the Distnct

Government-Wide Review of Condensed Statement of Net Assets

The composition of net assets and the change in net assets over time serves as a usefu} indicator of a government's financial position The District's assets at fiscal year-end exceed liabilities by $581.882 (net assets) Of the District's net assets. $22,074 is Restncted Net Assets consisting of cash funds for debt service The balance of net assets includes $419,052 Invested in Capital Assets, Net of Related Debt, and $140,756 in Unrestricted Net Assets

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The Unrestncted Assets totaled $140,756 or 24 18% of net assets These assets are available to meet the ongoing needs of the Distnct

The largest category of net assets is Invested in Capital Assets, Net of Related Debt, totaling $419,052 or 72 01% of net assets This category reflects the total invested in assets (land, building, equipments, etc) net of any related debt used to acquire capital assets These capital assets are used to provide service to citizens and do not represent assets available for future spending At the end of the cun-ent fiscal year, the Distnct was able to report positive balances in all categones of net assets for the government as a whole, as well as for separate governmental activities

Condensed Statement of ActWities

Program Expenses Public safety

General Revenues Ad valorem tax Grant Revenues Donatons Other Revenues

Total Revenues

December 31, 2010

$ 106,522

75.639 121.660

20.438 217,737

December 31,

$

2011

113,659

71.180

500 16,686 88,366

Dollar Change

$ 7,137

(4.459) (121,660)

500 (3.752)

(129.371)

Percentage Change

6 70%

-5 90% -100% 100%

-18 36% -59 42%

Change in Net Assets 111,215 (25,293) (136,508) -122 74%

Beginning Net Assets 495,960 607,175 111,215 22 42% Ending Net Assets $ 607,175 $ 581,882 (25,293) -4 17%

See page 11 for more detailed Statement of Net Activities for the Distnct

Significant categories of the Statement of Activities are noted below

Ad valorem taxes are the pnmary source of revenue totaling $71,180 for the fiscal year ending December 31, 2011, at 80 55% of total revenue In 2011, the Distnct had decrease revenues of $129,371 The decrease occurred in grant revenues of $121,660

The major expenditure within The Statement of Activities is depreciation expense at $50,572 (44 49%), and Insurance expense at $20,640 or 18 15% of total expenditures See page 11 for more detail on The Statement of Activities

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Analysis of Fund Financial Statements

Governmental Funds

The focus of the Distnct's govemmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources Such information is useful in assessing the Distnct's financing requirements In particular, unresen/ed fund balance may sen/e as a useful measure of the Distnct's net resources available for spending at the end of the year

As of December 31. 2011, the District's govemmental funds reported a combmed endmg fund balance of $162,830 an decrease of $128,438 in companson with pnor year Approximately 83 14% of this total ($135,387) constitutes unreserved fund balance, which is available for spending at the Distnct's discretion The remainder of the fund balance is reserved to indicate that is not available for new spending because it is already committed for debt service ($22,074)

Budgetary Highlight

The Distnct does not have a formal policy on adopting a budget All appropnations lapse at year-end The Distnct at regular meeting on February 14, 2011 adopted the budget for the year ended December 31, 2011 The 2011 was amended budget on August 8, 2011 The Distnct was not in compliance with the State Budget Act The Budget revenues exceeded actual revenues by 7%




Budget vs. Actual - Fiscal Year End December 31, 2011

REVENUES: fid valorem taxes State revenue shanng Insurance rebate Interest eamed Donation

Total Revenues

EXPENDITURES: Fuel, gas. and oil Dues and subscnptons Repairs and maintenance Travel Depreciation Capital outlay Insurance expense Legal and accounting Utilities Supplies OfHce expense Training expense Pension expenses Administrative

Total expenditures

EXCESS (DEFICIENCY) OF REVENUE OVER (UNDER) EXPENDITURES

FUND BALANCE, JANUARY 1, 2011

FUND BALANCE, DECEMBER 31, 2011

Amended Budget

$ 60.000 13,000 6,000 455 250

$ 79,705

$ 5,600 700

14,900 300

56,100 62,617 21,700 3,900 6,600

700 2,200 1,700

197,017

Actual

$ 56,943 9,563 6,812 286 500

$ 74,104

$ 6,093 707

12,901 565

138,717 20,640 3,900 6,828 1,077 769

3,787 2,045 149

198,178

Variance

$ (3,057) (3,437) 812 (169) 250

$ (5,601)

(493)

(7) 1,999 (265)

56,100 (56,100) 1,060 -

(228) (1,077)

(69) (1,587) (345) (149)

(1,161)

(117.312) (124.074)

264.830 264.830

(6.762)

$ 147.518 $ 140,756 (6,762)

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Capital Assets At the end of the fiscal year December 31, 2011. the Fire District No 9 had $449,052 (net of accumulated depreciation) recorded in capital assets Capital outlays are recorded as expenditures of the General Fund and as assets in the government -wide financial statement Depreciation is recorded on general fixed assets on a government-wide basts using the straight-line method and the following estimated useful life

Fire Stations 40 years Fire Trucks and Other Truck 6-20 years Equipment 3-10 years

Fixed assets are valued at histoncal cost or estimated histoncal cost if actual cost was not available Donated assets are valued at fair market value on the date donated The cost of all assets acquired pnor to 1989 have been valued using estimated histoncal cost

Capital asset activity for the year ended December 31, 2011

Dollar Percentage 12/31/10 12/31/11 Change Change

128,717

10.000

Capital Assets being Depreaation Sign Fire Stations Fire Equipments Office Equipn^ents Fire Trucks Total Depreciatons Assets Less Accumulated Depreciaton _ Total Capital Assets Land

Total Capital Assets.

being Depreciation

Net

1.400 80,031

299.379 12,231

404.693 797.734

(442.827) 354.907

6,000 360.907

1,400 80,031

428.096 12.231

414.693 936,451

(493.399) 443,052

6.000 449,052

138,717 (50.572) 88.145

0 00% 0 00%

42 99% 0 00% 247%

17 39% 1142% 24 84%

88.145 24 42%

The Distnct purchased a 1990 redford pumper for $10,000 and 38 complete set of bunker gear for $88,140. and Compressor for $40,000

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Long-Term Debt Activity

Long-term obligations are reported in the government-wide statement In previous years under govemmental funds, the Fire Distnct reported long-term debt in the debt service fund

A schedule of changes in the long-term debt obligation for the Fire Distnct # 9 dunng 2011 follow

Balance Balance January 1. December 31

2011 Addibons Deduction 2011

Bonds Payable 45.000 00 (15,000 00) 30.000 00

Future Economic Plans

The Washington Pansh Fire Protection District's management approach is conservative The Board of Commissioners actively monitor revenues and expenses and evaluate the costs of proposed expansion projects

FINANCIAL STATEMENTS

STATEMENT A

WASHINGTON PARISH FIRE PROTECTION DISTRICT # 9 WASHINGTON PARISH GOVERNMENT

Mt Hermon, Louisiana Statement of Net Assets

December 31, 2011

Governmental Activities

ASSETS: Cash and cash equivalents Property tax receivables Prepaid insurance Capital assets

Land Building, trucks, and equipment Less accumulated depreciation

Capital assets, net

Total Assets

LIABILITIES: Pension deduction Long-term debt due in one year Long-term debt due more than one year

Total Liabilities

Net Assets Invested in capital assets, net of related debt

Restricted for Debt Unrestncted

Total Net Assets

$ 96,580 63,437 5,369

6,000 936,450 (493,398) 449,052

614,438

2,556 15,000 15.000

32,556

419,052 22,074 140,756

$ 581.882

See accountant's compilation report and accompanying notes to the financiai statements

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STATEMENT B

WASHINGTON PARISH GOVERNMENT Mt Hermon, Louisiana

STATEMENT OF ACTIVITIES For the Year Ended December 31, 2011

Program Expenses: Public Safety Fuel, gas. and oil Dues and subscriptions Repairs and maintenance Travel Depncation expenses Insurance expense Legal and accounting Utilities Supplies Office expense Training expense Pension expenses Administrative expense Interest expenses

Total Programs Expenses

General Revenues: Ad valorem taxes State revenue sharing Insurance rebate Interest eamed Donation

Total General revenues

Change Net Assets

Net Assets Beginning of the Year

Net Assets End of the Year

$ 6,093 707

12,901 565

50,572 20.640 3.900 6,828 1.077 769

3.787 2.556 1,149 2.115

$ 113,659

$ 71,180 9.563 6,812 311 500

88,366

(25,293)

607,175

$ 581,882

See accountant's compilation report and accompanying notes to financiai statements

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STATEMENT C


Mt Hermon, Louisiana Balance Sheet

Governmental Funds December 31, 2011

ASSETS: Cash and cash equivalents Receivables Prepaid Insurance

TOTAL ASSETS

General Fund

$ 86,698 50,734 5,369

$142,801

Debt Service Fund

$ 9,882 12,703

$ 22,585

Total Governmental

Funds

$ 96,580 63,437 5,369

$ 165,386

LIABILITIES AND EQUITY

LIABILITIES: Pension deduction

Total Liabilities

EQUITY Restncted Fund Balance Nonspendable Unassigned Fund balance Total Equity

TOTAL LIABILITIES AND EQUITY

2,045 2,045

5.369 135,387 140,756

$142,801

511 511

22.074

22,074

$ 22.585 $

2,556 2,556

22,074 5.369

135,387 162,830

165.386

See accountant's compilation report and accompanying notes to the financial statements

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Schedule D

WASHINGTON PARISH FIRE PROTECTION DISTRICT # 9 WASHINGTON PARISH GOVERNMENT


Reconciliation of the Governmental Fund Balance Sheet to the Government-Wide Financial Statement of Net Assets

December 31, 2011

Amounts reported for governmental activities in the Statement of Net Assets are different because

Fund Balances, Total Govenmental Funds (Statement C) $ 162,830

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds

Governmental capital assets net of depreciation 449.052

Long-term liabilities and current bonds payable are not reported in the govemmental funds

Long- temn liabilities (30.000)

Net Assets of Governmental Activities (Statement A) $ 581,882

See accountant's compilationreport and notes to the financial statement -13-

STATEMENT E



Statement of Revenues, Expenditures and Changes in Fund Balance

Governmental Funds For the Year Ended December 31, 2011

General Debt

Sen/ice Total Revenues: Ad valorem taxes State revenue shanng Insurance rebate Interest eamed Donation

Total Revenues

Expenditures: Fuel. gas. and oil Dues and subscnptions Repairs and maintenance Travel Capital outlay Insurance expense Legal and accounting Utilities Supplies Office expense Training expense Pension expenses Administrative expense Debt service

Principal retirement Interest

Miscellaneous Total expenditures

Excess of revenue over (under) expenditures

Fund balance, January 1, 2011

Fund balance, December 31, 2011

$ 56,943 9.563 6.812 286 500

74,104

6,093 707

12,901 565

138.717 20,640 3,900 6.828 1,077 769

3.787 2.045 149

198,178

(124.074)

264,830

$ 140,756

$ 14,237

25

14,262

511 1.000

15,000 2,115

18.626

(4.364)

26.438

$ 22.074

$ 71.180 9.563 6.812 311 500

88,366

6.093 707

12,901 565

138,717 20.640 3.900 6.828 1.077 769

3,787 2.556 1,149

15.000 2.115

216,804

(128.438)

291,268

$ 162.830

See accountant's compilation report and accompanying notes to the financial statements

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Schedule F WASHINGTON PARISH FIRE PROTECTION DISTRICT NO. 9 Mt Hermon, Louisiana

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

The Statement of Activities For the Year Ended December 31,2011

Amounts reported for governmental activities in the Statement of Activities are different because

Net Change in Fund Balances. Total Governmental Funds (Statement E) $ (128,438)

Governmental funds report capital outlay as expenditures However, in the statement of activities the costs of assets are allocated over their estimated useful lives and reported as depreciation in the current penod

Expenditures for capital outlay 138,717

Less current depreciation (50,572) 88,145

Repayment of capital lease and long term debt pnnciple is an expenditure in governmental funds but the payment reduces long-term 15,000 liabilities in the statement of net assets

Long-Term Debt

Change in net assets of governmental activities, (Statement B) $ (25.293)

See accountant's compilation report and notes to financial statements -15-

NOTES TO FINANCIAL STATEMENTS


Mt Hermon, Louisiana Notes to the Financial Statements

For the Year Ended December 31, 2011 INTRODUCTION

The 1991 Louisiana Legislature, pursuant to Louisiana Revised statute 401491, created the Washington Pansh Fire Protection Distncts Washington Pansh Fire Protection Distnct No 9 was created by an ordinance adopted on July 24, 1995, by the Washington Pansh Police Jury The Distnct shall constitute a public corporation and as such shall have all the powers of public corporations, including perpetual existence and the nght and power to incur debt and contract obligations, to sue and be sued, and to have a corporate seal The Distnct shall also be authonzed to do and perform all acts in its corporate capacity and in its name, necessary and proper, for the purposes of acquinng, maintaining and operating buildings, machinery, equipment, water tanks, water hydrants, water lines, and such other things as might be necessary or proper for effective fire prevention and control as considered necessary by the pansh governing body of the Distnct for the protection of the property within the limits of the District against fire

The governing body of the pansh shall appoint a five member board that shall perform all duties, functions, and powers responsible for the operation and maintenance of the Distnct All funds of the Distnct shall be administered by the board of commissioners The board of commission members may be paid a per diem of fifty dollars for attending meetings of the board, and may be reimbursed any expenses incunred in performing the duties imposed upon them

The Distnct covers 53 7 square miles in the northwestern corner of Washington Pansh It serves approximately 1.800 people and businesses located within the boundanes of the Distnct The Distnct operates out of three fire stations which are located as follows Station No 1 on Louisiana Highway 1055 east of intersection with Louisiana Highway 38. Station No 2 on Martin Road northeast of intersection with Louisiana Highway 450 and Station No 3 on Esco Alford Road The Distnct has no compensated employees and operates with a volunteer staff of firefighters

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. MEASUREMENT FOCUS AND BASIS OF AQCCOUNTING AND FINANCIAL STATEMENT

The Distnct's financial statements are prepared on the modified accrual basis in accordance with accounting pnnciples generally accepted in the United States of Amenca The Distnct applies all Govemmental Accounting Standards Board (GASB) pronouncements as well as Financial Accounting Standards Board (FASB) statements and interpretations, and the Accounting Pnnciple Board (AP6) of the Committee on Accounting Procedures, Issued on or before November 1989, unless those pronouncements conflict or contradict with GASB pronouncements

These financial statements are presented in conformance with GASB Statement No 34, Basic Financial Statements, Management's Discussion and Analysis, for State and Local Govemments Statement No 34 established standards for financial reporting, with presentation requirements including a statement of net assets (or balance sheet), a statement of activities and change in net assets, and a statement of cash flows

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Notes to the Financial Statements (Continued) For the Year Ended December 31, 2011

B, REPORTING ENTITY

As the governing authority of the pansh, for reporting purposes, the Washington Pansh Government is the financiai reporting entity for Washington Pansh The financiai reporting entity consists of (a) the pnmary government. Parish Council, (b) organizations for which the pnmary government is financially accountable, and (c) other organizations for which nature and significance of their relationship with the pnmary government are such that exclusion would cause the reporting entity's financiai statements to be misleading or incomplete

Governmental Accounting Standards Board Statement No 14 established cntena for determining which component units should be considered part of the Washington Parish Government for financiai reporting purposes The basic cntenon for including a potential component unit within the reporting entity is financial accountability The GASB has set forth cnteria to be considered in determining financiai accountability This criteria includes

1 Appointing a voting majonty of an organization's governing body, and

a The ability of the Pansh Council to impose its will on that organization and/or

b The potential for the organization to provide specific financiai benefits to or impose specific financiai burdens on the Pansh Council

2 Organizations for which the Pansh Council does not appoint a voting majonty but are fiscally dependent on the Pansh Council

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

Because the Pansh Council appoints a voting majonty of the Distnct's governing board and the Pansh Council has the ability to impose its will on the Distnct. the District was detennined to be a component unit of the Washington Pansh Government, the financial reporting entity The accompanying financial statements present information only on the funds maintained by the Distnct and do not present information on the pansh government, the general government services provided by that governmental unit, or the other governmental units that compnse the financiai reporting entity

17-


Mt Hermon, Louisiana Notes to the Financial Statements (Continued)

For the Year Ended December 31, 2011

C. FUND ACCOUNTING

The Distnct maintains its financiai records on a fund basts, whereby a self-batancing set of accounts (Govemmenta) Fund) is maintained that compnses its assets, liabilities, fund equity, revenues, and expenses The general fund of the Distnct accounts for all financial resources, except those required to be accounted for in other funds

D. BASIS OF ACCOUNTING

The accompanying financiai statements of the Washington Parish Fire Protection Distnct No 9 have been prepared in conformity with generally accepted accounting pnnciples of the United State of Amenca (GAAP) as applied to government units The accompanying financiai statements have been prepared in conformity with GASB-34 Under GASB-34, a statement of net assets and statement of activities are prepared which are presented on the accrual basis of accounting The significant differences are capital outlay is reported as an asset and depreciated in the govemment-wide statement Also long term obligations are recorded as liabilities The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financiai reporting pnnciples

The accounting and financiai reporting treatment applied to a fund is determined by its measurement focus With this measurement of focus, only current assets and current liabilities generally are included on the balance sheet in the fund statements Long term assets and long term liabilities are included in the government-wide statements Operating statements of governmental funds present increases (revenues), other financing sources, decreases (expenditures), and other financing uses are included in current assets

The govemment-wide statement of net assets and statement of activities are accounted for on a fiow of economic resources measurement focus With this measurement focus, all assets and all liabilities associated with operation of these activities are included on the statement of net assets

The statement of net assets and statement of activities are presented on the accrual basts of accounting Under this method of accounting exchange, revenues are recognized when eamed and expenses are recorded when liabilities are incurred without regard to receipt or disbursement of cash

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The modified accrual basis of accounting is used by the governmental funds The accounting and financial reporting treatment applied to a fund is determined by its measurement focus Govemmental funds are accounted for using a current financiai resources measurement focus With this measurement focus, only current assets and current liabilities generally are included on the balance sheet Operating statements of these funds present increases and decreases in net current assets Effective for financiai statements issued after June 30, 2000, GASB Statement 33, Accounting and Financial reporting for non-exchange transactions, defines a non-exchange transaction as a transaction whereby the government gives or receives value without directly receiving or giving equal value in return Property taxes are imposed non-exchange revenues which result from assessments imposed on nongovernmental entities including individuals Assets should be recognized when the govemment has an enforceable lien or legal claim to the resources, or the resources are received, whichever occurs first Property tax revenues are recognized in the penod when the district has a legal claim to the resources However, for revenue to be recognized under the modified accrual basts, the measurable and available cntena must also be met Governmental funds use the following practices in recording revenues and expenditures

Revenues

Revenues are recognized in the accounting penod they become available and measurable Donations, fund raismg net revenues and state revenue sharing is recorded when received Ad valorem taxes become a lien against the assessed property on assessment date or levy date Property taxes collected by the taxing authonty, but not remitted to the Distnct at year-end, are accnjed in revenue and included in property tax receivable

Expenditures

Expenditures are recognized in the accounting penod when the fund liability is incurred

E. BUDGETS

The Distnct does not have a formal policy on adopting a budget All appropnations lapse at year-end The Distnct at regular meeting on February 14. 2011 adopted the budget for the year ended December 31, 2011 The 2011 was amended budget on August 8. 2011 The District was not in compliance with the State Budget Act The Budget revenues exceeded actual revenues by 7%

F. ENCUMBRANCES

The Distnct does not use encumbrance accounting

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G. CASH AND CASH EQUIVALENTS

Cash includes amounts in demand deposits and interest beanng demand deposits Under state law. the Distnct may deposit funds in demand deposits, interest-beanng demand deposits, money market accounts, or time deposits with state banks organized under Louisiana law and national banks having their pnncipal offices in Louisiana

H. PREPAID ITEMS

The Distnct uses the allocation method of recording prepaid expenses

I. CAPITAL ASSETS

Capital assets are recorded as expenditures at the time purchased or constructed Alt capital assets are valued at histoncal cost or estimated histoncal cost Donated assets are valued at fair market value on the date donated The cost of all assets acquired pnor to 1989 have been valued using estimated histoncal cost

Fire Stations 40 Years Fire Tmcks and Other Tnjcks 5-20 Years Equipment, Furniture and Fixtures 3-10 Years

J. COMPENSATED ABSENCES

The Distnct does not have any paid employees, therefore, it does not have a fomrial leave policy

K. LONG-TERM OBLIGATIONS

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

In the fund financiai statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, dunng the current penod The face amount of the debt issued is reported as other financing sources Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures

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L. EQUITY-GOVERNMENT WIDE FINANCIAL STATEMENTS

• Invested in capital assets, net of related debt - This component of net assets consists of capital assets, including restncted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds or indebtedness attnbutable to acquisition, construction, or improvement of those assets If there are significant unspent proceeds at year-end, the portion of the debt attnbutable to unspent proceeds is not included in the calculation of invested in capital assets, net of related debt Rather, that portion of the debt is included in the same net asset calculation as unspent proceeds

• Restricted - this component of net assets consists of constraints placed on the asset use through external constraints imposed by creditors (such as through debt covenants), grantors, contnbutors. or law or regulations of other governments or constraints imposed by law though constitutional provisions or enabling legislation

• Unrestncted - This component of net assets consists of net assets that do not meet the definition of "restncted" or "invested in capital assets, net of related debt"

M. FUND BALANCE-GOVERNMENTAL FINANCIAL STATEMENTS In the fund financiai statements, governmental fund equity is classified as fund balance The Village adopted GASB 54 for the year ended December 31. 2011 Governmental funds are classified as follows

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

• Restricted -These are amounts that can be spent only for specific purpose because of constitutional provisions, enabling legislation, or externally imposed constraints by creditors, grantor, contnbutors or the laws or regulations of other governments

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Committed -These are amounts that can be used for specific purpose determined by a formal decision by the Board Members, which are the highest level of decision-making authority for the Village

Assigned -These are amounts that do not meet the cntena to be classified as restncted or committed, but that are intended to be used for specific purpose

Unassigned -These are all other spendable amounts

NOTE 2 - LEVIED TAXES

On November 18, 1995. the Distnct offered two tax propositions to the voters of the Distnct for funding fire protection A 16 milt tax for the purpose of acquinng, constructing, improving, maintaining and/or operating fire protection facilities and equipment tn and for the Distnct, and paying the cost of obtaining water for fire protection purposes for a penod of 10 years beginning 1996 and ending with the year 2005 was passed by voters of the District This proposition was renewed by the voters of the Distnct on Apnl 17, 2004 For the penod covered by these financial statements, the millage was set at 16 mills

Also, a proposition to issue general obligation bonds in the amount of $225,000 to run 20 years for the purpose of acquinng, constructing and improving buildings, machinery and equipment, including both real and personal property, payable from ad valorem taxes to be levied and collected tn the manner provided by Article VI. Section 33 of the Constitution of the State of Louisiana of 1974 was passed by the voters of the Distnct In 2007, The Distnct reduced the millage for debt service from 10 mills to 4 mills which is reported in this penod financiai statements

2011 Assessed property value Homestead Exemption

Taxable Value

Total Tax Homestead Value

Taxable Value

$6,756,050 (3,055.515)

$3,700,535

$ 135,121 (61,110)

$ 74,011

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NOTE 3 - CASH AND CASH EQUIVALENTS

At December 31, 2011, the District has cash and cash equivalents totaling $96,580 as follows

Non-interest beanng demand deposits $ 71,335 Interest beanng demand deposits 25,245 Total cash and cash equivalents $ 96,580

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

At December 31. 2011, the District had $98,095 tn deposits (collected bank balances, including certificates of deposit) These deposits were secured from nsk by $250,000 of federal deposit insurance

NOTE 4-RECEIVABLES

The following is a summary of receivables at December 31. 2011

Class of Receivables Ad valorem Tax General Fund $ 50,734 Debt Service Fund 12.703

$ 63.437

NOTE 5 - CAPITAL ASSETS

Capital Activity for the year ended December 31. 2011

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Balance January 1,

2011

1,400 80.031

299.379 12,231

404.693 797,734 (442.827) 354.907

6.000 360.907

Additions

-128.717

-10.000

138.717 (50.572) 88,145

-88.145

Balance December 31 .

Deductions 2011

1.400 80,031

428,096 12.231

414.693 936,451 (493.399) 443.052

6.000 449,052

Capital Assets being Depreciation Sign Fire Statons Fire Equipments Office Equipments Fire Trucks Total Depreciatons Assets Less Accumulated Depreciation Total Capital Assets being Depreciation Land

Total Capital Assets , Net

NOTE 6 - LONG-TERM DEBT

The following is a summary of the long-term obligation transactions dunng the year

Balance January 1.

2011

45.000

Additions Deduction

Balance December 31.

2011

Amount due in

One Year

Bonds Payable (15.000) 30,000 15,000

General obligation bonds are compnsed of the following issue

On November 18. 1995, the voters of Washington Pansh Fire Protection Distnct No 9 passed a proposition for the issuance of $225,000 of General Obligation Bonds for the purpose of acquinng, constructing, and improving buildings, machinery, and equipment, including both real and personal property, to be used in giving fire protection to the property of the Distnct, title to which shall be in the public, said bonds to be payable from ad valorem taxes The interest rate over the 20 years of the offering vanes from 10 0% to 4 7% resulting in a net yield of 5 6591468% (at par) The Distnct is bound under the terms and provisions of the taw and the resolution to impose and collect annually a special ad valorem tax on all the property subject to taxation within the territonal limits of the Distnct, sufficient to pay the pnnctpal of and interest and redemption premium, on the Bonds falling due each year A pnncipal and interest payment is due each March 1 and an interest only payment is due September 1

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The annual sinking fund requirements to amortize all bonds and/or certificates outstanding at December 31. 2011, including interest of $32,543 are as follows

General General General J ^Obligation Obligation ' Obligation

Year Ending ! Pnnciple j interest Payments 2012 '! $ 15,000 "I $ 1,695 $ 16.695 ,

"~ ^ _ _ 2013^; ' 'T5^0b0^ • 848 ' ; 15.848 ; I I $ 30.000 i'l $ 2,543 • $ 32,543 ,

NOTE 7 - FUND BALANCE - RESTRICTED- UNRESTRICTED- NONSPENDABLE

The restncted fund balance of $22,074 is set aside for bond payment to Citizens Saving Bank for two tanker trucks The unrestncted fund balance of $135,387 is available for current activities Non spendable is prepaid insurance of $5,369

NOTE 8- LITIGATION AND CLAIMS

As of December 31. 2011, the Distnct was not involved in any outstanding litigation or claims

NOTE 9 - RELATED PARTY TRANSACTIONS

There were no related party transactions requiring disclosure in the financiai statements

NOTE 10 - SUBSEQUENT EVENTS

There were no subsequent events requinng disclosure in the financial statements

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REQUIRED SUPPLEMENTAL INFORMATION (PART 1)

Schedule 1


Mt Hermon, Louisiana Budgetary Comparison Schedule

General Fund For the Year Ended December 31, 2011

REVENUES: Ad valorem taxes State revenue sharing Insurance rebate Interest earned Pension income Donation

Total Revenues

EXPENDITURES: Fuel, gas, and oil Dues and subscriptions Repairs and maintenance Travel Depreciation Capital outlay Insurance expense Legal and accounting Utilities Supplies Office expense Training expense Pension expenses Administrative

Total expenditures

EXCESS (DEFICIENCY) OF REVENUE OVER (UNDER) EXPENDITURES

FUND BALANCE, JANUARY 1, 2011

Original Budget

$ 48,000 9.000 7,000

455 2,000

-$ 66,455

$ 3,100 500

8,200 -

49.548

20,220 4,000 6,100

700 2.500 1,700

900 $ 97,468

Amended Budget

$ 60.000 13,000 6,000

455 -250

$ 79,705

$ 5.600 700

14.900 300

56.100 82,617 21.700 3.900 6.600

700 2.200 1,700

197.017

Actual

$ 56,943 9.563 6.812

286

500 $ 74.104

$ 6,093 707

12,901 565

138,717 20.640 3,900 6.828 1.077

769 3.787 2,045

149 $ 198.178

Variance

$ (3,057) (3.437)

812 (169) -250

$ (5,601)

$ (493) (7)

1,999 (265)

56,100 (56,100)

1,060 -

(228) (1,077)

(69) (1,587)

(345) (149)

$(1,161)

(31,013) (117.312) (124.074) (6,762)

264.830 264,830 264,830

FUND BALANCE, DECEMBER 31, 2011 $233.817 $ 147,518 $ 140.756 $ (6,762)

See accountant's compilation report

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OTHER SUPPLEMENTAL INFORMATION

Schedule II WASHINGTON PARISH FIRE PROTECTION DISTRICT NO. 9

WASHINGTON PARISH GOVERNMENT Mt Hermon, Louisiana

SCHEDULE OF BOARD MEMBER For the Year Ended December 31, 2011

Name and Title/ Contract Number Gary L Fenner, Secretary/Treasurer (985) 877-5058

Address 35483 Dock Bulter Road. Mount Hermon 70450

George T Burch (985) 877-4572

35357 Hwy 38. Mount Hermon 70450

Cdston Martin (985) 877-9923

39235 Martin Road. Mount Hermon 70450

WalterW Smith, Vice-Chairman (985) 877-4730

30157 Hwy 1055. Mount Hemion 70450

Russell Passman, Chamian (985) 877-5504

28218 Woody Booty Road, Mount Hermon 70450

There was no compensation paid to board members dunng the year

This disclosure is made in compliance with House concurrent resolution Number 54 of the 1979 Session of the Louisiana legislative

See accountant's compilation report -27-

Documents

Washington Parish Fire Protection District No. 9 · WASHINGTON PARISH FIRE PROTECTION DISTRICT NO 9 WASHINGTON PARISH GOVERNMENT Mt Hermon, Louisiana Componont Unit Financial Statements