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VILLAGE OF LISBON Lisbon, Louisiana
Annual Financial Statements
As of and for the Year Ended December 31, 2009
Under provisions of state law, this report is a public document. Acopy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office ofthe Legislative Auditor and, v̂ rhere appropriate, at the office of the parish clerk of court
Release Date l 0 / .<)//P H
VILLAGE OF LISBON
Lisbon, Louisiana
Annual Financial Statements
As of and for the Year Ended December 31, 2009
C O N T E N T S
Accountant's Compilation Report
Basic Financial Statements:
Govemment-Wide Financial Statements:
Statement of Net Assets
Statement of Activities
Fund Financial Statements:
Govemmental Fund:
Balance Sheet
Statement of Revenues, Expenditures and Changes in Fund Balances
Business-Type Activities:
Statement of Net Assets
Statement of Revenues, Expenses, and Changes in Net Assets
Statement of Cash Flows
Notes to the Financial Statements
Statement Page No.
3
D
F
G
10
11
12
VILLAGE OF LISBON Lisbon, Louisiana Annual Financial Statements As of and for the Year Ended December 31, 2009
C O N T E N T S (Contd.)
Schedule Page No.
Supplemental Information Schedules:
Schedule of Per Diem Paid Aldermen 1 21
Status of Prior Year Findings 2 22
Current Year Findings and Corrective Action Plan 3 23
M. CARLEEN DUMAS Certified Public Accountant
369 Donaldson Road. Calhoun, Louisiana. Telephone 318/644-5726
Accountant's Compilation Report
MAYOR AND BOARD OF ALDERMEN VILLAGE OF LISBON Lisbon, Louisiana
I have compiled the accompanying basic financial statements and supplemental information schedules, as hsted inthe foregoing table of contents, ofthe Village of Lisbon as of December 31, 2009, and for the year then ended, in accordance with standards estab]ishedby Statements on Standards/or Accounting and Review Services issued by the American Institute of Certified Pubhc Accountants.
A compilation is hmited to presenting in the form of financial statements and schedules, infomiation that is the representation of management. I have not audited or reviewed the accompanying financial statements and schedules and, accordingly, do not express an opinion or any form of assurance on them.
Management ofthe village did not adopt a budget for the General Fund, therefore, the budgetary comparison schedule which is supplemental information required by GASB is not included in the acconpanying supplemental information schedules. Additionally, management has elected to omit Management's Discussion and Analysis which is also supplemental information required by GASB. If the omitted uiformation were included in the financial statements, they might influence the user's conclusions about the village's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
/s Carleen Dumas Calhoun, Louisiana Febmary 16, 2010
Member ofthe American Institute of Certified Public Accountants Member ofthe Society of Louisiana of Certified PubUc Accountants
BASIC FINANCIAL STATEMENTS
VILLAGE OF LISBON Lisbon, Louisiana
STATEMENT OF NET ASSETS December 31, 2009
Statement A
GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES TOTAL
ASSETS Cash Investments Receivables (net of allowances for uncollectibles) Other assets Capital assets (net)
TOTAL ASSETS
LIABILITIES Customer deposits
NET ASSETS Invested in capital assets Unrestricted
TOTAL NET ASSETS
$9,444 61,225
14,038
84,707
NONE
14,038 70,669
$84,707
$29,838
2,415 10
10,828
43,091
10,983
10,828 21,280
$32,108
$39,282 61,225
2,415 10
24,866
127,798
10,983
24,866 91,949
$116,815
See accompanying notes and accountant's compilation report.
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VILLAGE OF LISBON Lisbon, Louisiana
BALANCE SHEET - GOVERNMENTAL FUND December 31, 2009
Statement C
ASSETS Cash Investments
TOTAL ASSETS
LLVBILITIES AND FUND BALANCES Liabihties Fund balance - unreserved
TOTAL LIABILITIES AND FUND BALANCES
GENERAL FUND
$9,444 61,225
$70,669
NONE 70,669
$70,669
Reconciliation ofthe Balance Sheet of Govemmental Fund To the Statement of Net Assets:
Fund balance - unreserved - General Fund Amount reported for net assets of govemmental activities
in the Statement of Net Assets (Statement A) is different because: Capital assets used in govemmental activities are not
financial resources and therefore are not reported in the fund
Net assets of govemmental activities (Statement A)
$70,669
14,038 $84,707
See accompanying notes and accountant's compilation report.
Statement D VILLAGE OF LISBON
Lisbon, Louisiana
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUND
For the Year Ended December 31, 2009
GENERAL FUND
REVENUES Franchise taxes $2,899 Licenses and permits 5,393 Rent 4,000 Royalties 333 Investment earnings 1̂ 450
Total revenues 14,075
EXPENDITURES General govemment: Current:
Personal services Operating services Materials and suppHes Other
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE AT BEGINNING OF YEAR
FUND BALANCE AT END OF YEAR
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Fund to the Statement of Activities:
Net change in fund balance - General Fund $679 Amount reported for govemmental activities in the
Statement of Activities (Statement B) are different because: Govemmental funds report capital outlays as expendimres. However, in the statement of activities, the cost of those assets is allocated over their estimated usefiil lives as depreciation expense. This is the amount by which depreciation expense exceeded capital outlays in the current period. (1,862)
Change in net assets of govemmental activities (Statement B) ($1J83)
See accompanying notes and accountant's compilation report.
1,722 11,366
303 5
13,396
679
69,990
$70,669
VILLAGE OF LISBON Lisbon, Louisiana
STATEMENT OF NET ASSETS - BUSINESS-TYPE ACTIVITIES December 31, 2009
Statement E
ASSETS Current assets:
Cash Accounts receivable (net of allowance for doubtfiil accounts) Other
Total current assets Noncurrent assets:
Capital assets (net of accumulated depreciation) Total assets
LIABILITIES Current habihties - customer deposits
NET ASSETS Invested in capital assets Unrestricted
Total net assets
Water Enterprise
Fund
$29,838 2,415
10 32,263
10,828 43,091
10,983
10,828 21,280
$32,108
See accompanying notes and accountant's compilation report.
Statement F
VILLAGE OF LISBON Lisbon, Louisiana
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - BUSINESS-TYPE ACTIVITIES
For the Year Ended December 31, 2009
Water Enterprise
Fund
OPERATING REVENUES Water sales
OPERATING EXPENSES Office expense Postage Maintenance and repairs Utihties Materials and supphes Insurance Salaries and payroll taxes Dues and subscriptions Telephone Depreciation Other operating expenses
Total operatuig expenses
OPERATING INCOME (Loss)
NON-OPERATING REVENUES (Expenses) Interest eamed on deposits State grant
Total non-operating revenues
CHANGE IN NET ASSETS
NET ASSETS - BEGINNING
NET ASSETS - ENDING
$36,888
616 596
14,027 3,591 6,089 2,845
20,378 275 136 851
1,044 50,448
(13,560)
25,000 25,008
11,448
20,660
$32,108
See accompanying notes and accountant's compilation report.
VILLAGE OF LISBON Lisbon, Louisiana
STATEMENT OF CASH FLOWS - BUSINESS-TYPE ACTIVITIES For the Year Ended December 31, 2009
Statement G
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Customer deposit receipts, net Payments to suppliers Payments to employees
Net cash provided by operating activities
CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES
State grant Purchase of capital assets
Net cash provided by capital fmancing activities
CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings on bank deposits
NET INCREASE IN CASH
CASH AT BEGINNING OF YEAR
CASH AT END OF YEAR
Reconciliation of Operating Income (Loss) to Net Cash Used by Operating Activities
Operating Loss Adjustments:
Depreciation Decrease in accounts receivable Decrease in customer deposits
Total adjustments Net cash provided by operating activities
Water Enterprise
Fund
$37,203 (75)
(32,253) (17,344) (12,469)
25,000 (3.575) 21,425
8,964
20,874
$29,838
($13,560)
851 315
(za 1,091
See accountant's compilation report and accompanying notes.
VILLAGE OF LISBON Lisbon, Louisiana
Notes to the Financial Statements As of and for the Year Ended December 31, 2009
INTRODUCTION
The Village of Lisbon was incorporated under the provisions ofthe Lawrason Act. The village is govemed by the mayor-board of aldermen form of govemment. The mayor and three aldermen serve four-year terms which expire on December 31, 2009. The village has three part-time employees.
GASB Statement No. 14, r/?ei?eporn'«^£'«?;(y, estabhshed criteria for determining the govemmental reporting entity and component units that should be included within the reporting entity. Under provisions of this Statement, the Village of Lisbon is considered a primary govemment, since it is a special purpose govenmient that has a separately elected goveming body, is legally separate, and is fiscally independent of other state and local govemments. As used in GASB Statement No. 14, fiscally independent means that the municipahty may, without the approval or consent of another govemmental entity, determine or modify its own budget, levy its own taxes or set rates or charges, and issue bonded debt. The village has no component units.
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Government-Wide and Fund Financial Statements
The govemment-wide financial statements (i.e., the statement of net assets and the statement of activities) report infomiation on all ofthe activities ofthe Village of Lisbon. Govemmental activities, which normally are supported by taxes and intergovemmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given fimction or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular Sanction or segment. Taxes, hcenses, and other items not properly included among program revenues are reported instead as general revenues.
See accountant's compilation report. -12-
VILLAGE OF LISBON Notes to the Financial Statements
Separate financial statements are provided for govemmental funds and business-type activities fiinds. All individual govemmental fiinds and individual enterprise funds are reported as separate columns in the fimd financial statements.
B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The govemment-wide financial statements are reported using the economic resources measurement focus and the accmal basis of accounting, as are the business-type fund financial statements. Revenues are recorded when eamed and expenses are recorded when a habihty is incurred, regardless ofthe timing of related cash flows. Grants and similar items are recognized as revenue as soon as all ehgibihty requirements imposed by the provider have been met.
Govemmental fiind fmancial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay habilities ofthe current period. For this purpose, revenues are considered to be available if they are collected within 60 days ofthe end ofthe current fiscal period. Expenditures generally are recorded when a habihty is incurred, as under accmal accounting.
Franchise taxes, licenses and permits, and mterest associated with the current fiscal period are all considered to be susceptible to accmal and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the village.
The Village of Lisbon reports the following govemmental fiind:
General Fund
The General fimd is the general operating fund ofthe village and accounts for all financial resources of the general govemment.
The Village of Lisbon reports the following business-type activity fimd:
Water System Enterprise Fund
The Water System Enterprise fimd accounts for the operations ofthe village water system.
See accountant's compilation report. -13-
VILLAGE OF LISBON Notes to the Financial Statements
Private-sector standards of accounting and financial reporting issued prior to December 1,1989, generally are followed inthe govemment-wide and business-type activities fimd financial statements to the extent that those standards do not conflict with or contradict guidance ofthe Govemmental Accounting Standards Board. Govemments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise fiinds, subject to the same hmitation. The village has elected not to follow subsequent private-sector guidance.
As a general mle, the effect of interfiind activity is ehmmated from the govemment-wide fmancial statements.
Amounts reported as program revenues include charges to customers for goods, services, or privileges provided and operating grants. General revenues include franchise taxes, occupational hcenses, investment income, and other miscellaneous revenues.
Business-type activities fiinds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and dehvering goods in connection with the fiind's ongomg operations. The Water System Enterprise Fund's operating revenues consist of charges for water sales. Operating expenses for enterprise funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting these definitions are reported as nonoperating revenues and expenses.
C, Deposits and Investments
Cash includes amounts in interest-bearmg demand deposits. State law allows the village to invest m collateralized certificates of deposits, govemment-backed securities, commercial paper, the state sponsored investment pool, and mutual funds consisting solely of govemment-backed securities. If the original maturities of investments exceed 90 days, they are classified as investments; however, if the original maturities are 90 days or less, they are classified as cash equivalents. At December 31, 2009, the village's investments consist of nonnegotiable certificates of deposits with original maturities that exceed 90 days that are reported in the accompanying financial statements at cost.
D. Receivables
All receivables are generally shown net of an allowance for uncollectible amounts. These statements contain no provision for uncollectible accounts. The village is of the opinion that such an allowance would be immaterial in relation to the financial statements taken as a whole.
See accountant's compilation report. -14-
VILLAGE OF LISBON Notes to the Financial Statements
E. Capital Assets
Capital assets, which include the original water system and inprovements, land, buildings, and equipment are reported in the appUcable govemmental or business-type activities columns in the govemment-wide financial statements. Capital assets are capitalized at historical cost or estimated cost. Approximately 98 percent ofthe village's capital assets have been capitalized at cost and the remaining 2 percent have been capitalized at estimated cost based on the historical cost of sunilar assets. The Village of Lisbon maintains a threshold level of $1,000 or more for capitalizmg capital assets. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset's life are not capitalized.
All capital assets, other than land, are depreciated using the straight-hne method over the following useflil hves:
Estimated Lives
Infrastmcture - water system and unprovements 25 years Buildings 40 years Equipment 5-15 years
F. Fund Equity
In the fimd financial statements, govemmental funds report reservations of fimd balance for amounts that are not available for appropriation or are legally restricted by outside parties for a specific purpose. Designations of fiind balance represent tentative management plans that are subject to change. At December 31, 2009, the village's govemmental fund balance was unreserved and undesignated.
G. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assunptions that affect certain reported amounts of assets and liabihties, disclosures, and revenues, expenditures, and expenses during the reporting period. Actual resuhs could differ from those estimates.
See accountant's compilation report. -15-
VILLAGE OF LISBON Notes to the Financial Statements
STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Budget Information
The Village of Lisbon did not adopt a budget for the General Fund for the year ended December 31,2009.
3. DEPOSITS IN FINANCIAL INSTITUTIONS
At December 31, 2009, the village has cash and investments (book balances) as follows:
Interest bearing checking accounts Investments - certificates of deposit
Total
$39,282 61,225
•'̂ 100 507
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 securities owned by the fiscal agent bank. The market value ofthe pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agent. These securities are held in the name ofthe pledging fiscal agent bank m a holding or custodial bank that is mutually acceptable to both parties. At December 31, 2009, the Village of Lisbon had $102,457 in deposits (collected bank balances). These deposits are fully secured from risk by federal deposit insurance.
4. RECEIVABLES
The following is a summary of receivables at December 31, 2009:
Water General Enterprise
Fund Fund Total
Accounts Allowance for doubtfiil accounts
Total
CAPITAL ASSETS
$2,415 $2,415 NONE NONE NONE
NONE $2,415 $2,415
Capital assets and depreciation activity as of and for the year ended December 31,2009, is as follows:
See accountant's compilation report. -16-
VILLAGE OF LISBON Notes to the Fmancial Statements
Balance at Balance at January 1, December 31,
2009 Increases Decreases 2009 Govemmental activities: Capital assets not being
depreciated - land Capital assets being
depreciated: Buildings Equipment Total capital assets being
depreciated Less accumulated depreciation
for: Buildings Equipment
Total accumulated depreciation
Total assets bemg depreciated. net
Business-type activities: Capital assets being
depreciated: Water system and
improvements Equipment
Total capital assets being depreciated
Less accumulated depreciation for: Water system and
improvements Equipment
Total accumulated depreciation
Total assets being depreciated. net
$1,000
$77,500 5,898
$83,398
62,600 5,898
68,498
$14,900
$100,588 3,063
103,651
93,159 2,388
95,547
$8,104
NONE
1,862
1,862
($1,862)
$3,575
3,575
761 90
851
$2,724
=
NONE
NONE
NONE = • . =
NONE
NONE
NONE
$1,000
$77,500 5,898
$83,398
64,462 5,898
70,360
$13,038
$104,163 3,063
107,226
93,920 2,478
96,398
$10,828
See accountant's compilation report. 17-
VILLAGE OF LISBON Notes to the Financial Statements
Depreciation expense of $1,862 for the year ended December 31, 2009 was charged to the general govemment govemmental fiinction and $851 was charged to business-type activities.
6. RISK MANAGEMENT
The village purchases commercial insurance to reduce the risk of loss resulting from property damage or habihty claims. There have been no significant reductions in insurance coverage from coverage in the prior year. Settlements have not exceeded insurance coverage m any ofthe past three fiscal years.
See accountant's compilation report.
SUPPLEMENTAL INFORMATION SCHEDULES
See accountant's compilation report. -19-
VILLAGE OF LISBON Lisbon, Louisiana
SUPPLEMENTAL INFORMATION SCHEDULES As of and For the Year Ended December 31, 2009
COMPENSATION PAID ALDERMEN
The schedule of per diempaid aldermen is presented in compliance with House Concurrent Resolution No. 54 ofthe 1979 Session ofthe Louisiana Legislature. Compensation ofthe aldermen is included in salary expense ofthe General Fund. In accordance with Louisiana Revised Statute 33:405, the aldermen receive $350 each year.
STATUS OF PRIOR YEAR FINDINGS
The follow-up and corrective action taken on all prior year fmdings is presented m Schedule 2.
CURRENT YEAR FINDINGS AND CORRECTIVE ACTION PLAN
The corrective action plan for current year findings is presented in Schedule 3.
See accountant's compilation report. -20-
Schedule I VILLAGE OF LISBON
Lisbon, Louisiana
Schedule of Per Diem Paid Aldermen For the Year Ended December 31, 2009
Jerry Clements $350 Marilyn Myers 350 Andy Roberts 350
Total $1,050
See accountant's compilation report. -21
Schedule 2 VILLAGE OF LISBON
Lisbon, Louisiana
STATUS OF PRIOR YEAR FINDINGS For the Year Ended December 31, 2009
Reference Number
N/A
Fiscal Year
Finding Initially
Occurred
2007
Description of Finding
Budgeted expenditures exceeded estimated funds available.
Corrective Action Taken
No "
Planned Corrective
Action
See Current Year Findines.
See accountant's compilation report. •22-
Schedule 3 VILLAGE OF LISBON
Lisbon, Louisiana
CURRENT YEAR FINDINGS AND CORRECTIVE ACTION PLAN
For the Year Ended December 31, 2009
Reference Number
N/A
Description of Findmg
The village did not adopt a budget for the General fiind for the year ended December 31,2009.
Corrective Action Planned
For all fiiture years, the village wiU adopt an armual budget for the General Fund.
Name of Contact Person
Wayne Tanner, Mayor
Anticipated Completion
Date
12/31/10
See accountant's compilation report. -23-