Town of Simmesportapp1.lla.la.gov/PublicReports.nsf/12F7F9E6D394EDF486257C...Town of Simmesporty...

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Town ofSimmesport

Annual Financial Statements As of and for the Year Ended

June 30, 2013

Under provisions of state law, this report is a public document. A copy 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 of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court.

Release Date J A i j i>g ^Qj^

DUCOTE& COMPANY Certi£ed Public Accountants

219 North Waabington Street P.O.Box 309

Marksville, lA 71361

TOWN OF SIMMESPORT, LOUISIANA Annual Financial Statements

As of and for the year ended June 30,2013

TABLE OF CONTENTS

INDEPENDENT AUDITORS' REPORT

REQUIRED SUPPLEMENTAL INFORMATION (PART I) Managemenfs Discussion and Analysis

BASIC FINANCIAL STATEMENTS

Govemment-Wlde Financial Statements: Statement of Net Position

Statement of Activities

Fund Financial Statements: Govemmental Funds:

, Balance Sheet and Reconciliation of the Govemmental Funds Balance Sheet to the Govemment-Wide Financial Statement of Net Position

Statement of Revenues, Expenditures, and Changes in Fund Balances

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

Proprietary Funds:

Statement of Net Position

Statement of Revenues, Expenses, and Changes in Fund Net Position

Statement of Cash Flows

Fiduciary Funds:

Statement of Fiduciary Net Position - Agency Funds

Notes to the Financial Statements

REQUIRED SUPPLEMENTAL INFORMATION (PART Ii)

Budget Comparison Schedules General Fund Sales Tax Fund

Notes to Budget Comparison Schedules

PAGE

1-2

4-8

10

11

12

13

14

15

16

17

18

19-33

35 36 37

TOWN OF SIMMESPORT, LOUISIANA Annual Financial Statements

As of and for the year ended June 30,2013

TABLE OF CONTENTS (Continued)

OTHER SUPPLEMENTAL SCHEDULES:

Detailed financial statements:

General Fund: Statement of Functional Expenditures-

Budget (GAAP Basis) and Actual 39-41

Enterprise Funds: Statement of Operating Expense Detail

Budget (GAAP Basis) and Actual 42-44

Non-Major Govemmental Funds: Combining Balance Sheet 45

Combining Statement of Revenues. Expenditures and changes in Fund Balances 46

Schedule of Compensation Paid to Elected Officials 47

OTHER REPORTS REQUIRED BY GOVERNMENTAL AUDmNG STANDARDS:

Independent Auditors* Report on Intemal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Govemment Auditing Standards 49-50

Schedule of Findings and Responses 51 -54

Status of Prior Audit Findings 55

Alaysia C. Ducote, CPA, PC t ^ i ' Joan S. Ducote, CFA, PC

UCOte & i nmpnrjy HopeJ.aagnani.CPA,PC Certified PuhUe Aeeountanta« %/

INDEPENDENT AUDITORS' REPORT

The Honorable Eric Rusic, Mayor And Members of the Council

Town of Slmmesport, Louisiana

We have audited the accompanying financial statements of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund Information, of the Town of Simmesf^rt, Louisiana, as of and for the year ended June 30, 2013. and the related notes to the financial statements, which collectively comprises the Town's basic financial statements, as listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and feir presentation of these financial statements In accordance with accounting principles generally accepted in the United States of America; this indudea the design, implementation, and maintenance of Intemal control relevant to the preparation and fair presentation of financial statements that are fiee firom material misstatement, whether due to firaud or error.

AudKore' Responsibility

Our responsibility Is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted In the United States of America and the standards applicable to financial audits contained In Govemment Auditing Standards, Issued by the Comptroller General of the United States. Those standards require that we plan and perfbmn the audit to obtain reasonable assurance about whether the statements are free of material misstatement.

An audit Involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors* judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In maldng those risk assessments, the auditor consklers intemal control relevant to the entity's preparation and fair presentation of the financial statements In order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audit evidence we have obtained Is sufficient and appropriate to provide a reasonable basis for our audit opinions.

Opinions

In our opinion, the financial statements re fen^ to above present fairty. in all material respects, the respective financial position of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund infonnation of the Town of Slmmesport. Louisiana, as of June 30, 2013. and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended, in confbnnity with accounting principles generally accepted in the United States of America.

American Institute of • Members • Society of Louisiana Certified Public Accountants Certified Public Accountants

219 North Washington • Post Offics Box 309 • Marksville, Louisiono 71351 • <318) 2S3-6601 • Fhx f3id) 253-0721

The accompanying financial statements have been prepared assuming that the Town of Slmmesport. Louisiana, will continue as a going concern. As presented In the financial statements, the Town of Slmmesport had a cumulative $211,047 cumulative deficit fund balance in the General Fund as of June 30. 2013. As discussed In note 18 of the financial statements, the management of the Town has Initiated some con^ctlve action however this condition still raises substantial doubt about the Town's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Other Matters

Accounting principles generally accepted In the United States of America require that the managemenfs discussion and analysis and budgetary comparison information on pages 4 through 8 and 35 through 47 be presented to supplement the basic financial statements. Such infonnation. although not a part of the basic financial statements, is required by the Govemmental Accounting Standards Board, who considers It to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical contexL We have applied certain limited procedures to the required supplementary Information In accordance with auditing standards generally accepted In the United States of America, which consisted of inquiries of management about the methods of preparing the Infonnation and comparing the information for consistency with managemenfs responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the Information because the limited procedures do not provkle us with sufficient evklence to express an opinion or provide any assurance.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Slmmesport Louisiana's financial statements as a whole. The combining and Individual nonmajor fund financial statements and schedules described In the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and Individual non-major fijnd financial statements are the responsibility of management and were derived from and relate directly to the underiying accounting and other records used to prepare the financial statements. The information has been subjected to auditing procedures applied In the audit of the financial statements and certain additional procedures. Including comparing and reconciling such information directiy to the underiying accounting and ottier records used to prepare the financial statements or to the financial statements themselves, and other addlttonal procedures in accordance with auditing standards generally accepted In the United States of America. In our opinion, the Information is falriy stated in all material respects in relation to ttie financial statements as a whole.

Other Reporting Required by Govemment Auditing Standards

In accordance with Govemment Auditing Standards, we have also Issued our report dated November 26. 2013, on our consideration of the Town of SImmesporfs intemal control over financial reporting and on our tests of its compliance with certain provisions of taws, regulattons, contracts, and grand agreements and other matters. The purpose of tiiat report is to describe the scope of our testing of intemal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report Is an integral part of an audit pertormed in accordance with Govemment Auditing Standards in considering the Town of SImmesporfs Intemal control over financial reporting and compliance.

DUCOTE&COMP^ Maricsvlile. Louisiana November 26.2013

ANY

2

American Institute of * Members * Society t^Louisiana Certified Public Accountants Certified Public Aeeountants

219North Washington •Pbst Office Bos 309 • MaHuviUe, Louisiana 71351 • (318)263-6501 • F ^ (318) 2534)721

REQUIRED SUPPLEMENTAL INFORMATION (PART I) Management's Discussion and Analysis

Town of Simmesporty Louisiana Aianagement's

Discussion and Analysis June 30,2013

This discussion and analysis is intended to be an easily readable analysis of the Town of Simmesport*s financial activities based on currentiy known &cts. decisions or conditions. This analysis focuses on cunent year activities and should be read in conjunction with the financial statements that follow:

Report Layout

With die in^lementadon of Govemmental Accounting Standards Board Statement No. 34, *3asic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments," a goverament*s presentation of financial statements has been greatly changed. Besides the Management's Discussion and Analysis (MD&A), the report consists of govemment-wide statements, fund financial statements, notes to the financial statements, combining schedules of non-major funds and supplementary infomiation. The first several statements are highly condensed and present a govemment-wide view of the Town's finances. Within this view, all Town operations are categorized and reported as either govemmental or business-type activities. Govemmental activities include basic services such as police, fire, public works, parks and recreation, community development and general govemment administration, l i e sales tax fimd is also included in the govemmental activities. The Town's other activities of water and sewer and gas operations are reported within the business-type activities. These govemment-wide statements are designed to be more corporate-like in that all activities are consolidated into a total for the Town.

Basic FInaneial Statements

• The Statement of Net Position focuses on resources available for fiiture operations. In simple terms, this statement presents a smq>-shot view of the assets the community owns, the liabilities it owes and the net difference. The net difference is further separated into amounts restricted for specific purposes and imrestricted amounts. For the fiist time, govemmental activities reflect coital assets including infi:astructure and long-term liabiUties. Business-type activities have long reported capital assets and long-term liabilities. Also, for the first time, govemmental activities are reported on die accrual basis of accountijig.

• The Statement of Activities focuses on gross and net costs of town programs and the extent to which such programs rely upon general tax and other revenues. This statement summarizes and sinq)lifies the user's analysis to detennine the extent to y/^ch programs are self-supporting and/or subsidized by general revenues.

• Fund financial statements focus separately on major govemmental funds and proprietary funds. The Town's major goverumimtal fiinds are presented in their own column and the remaining funds are combined into a column titled **Other Govemmental Funds." A budgetary comparison is presented for the general fund, sales tax fimd and the Capital Projects Fund. Statements for die Town's proprietary fimds follow the govemmental fimds and include net assets, revenue, expenses and changes in net position, and cashflow.

• The notes to the financial statements provide additional disclosures required by governmental accounting standards and provide infonnation to assist die reader in understanding the Town's financial conditioiL

Readers desiring additional infonnation on non-major fimds can find it in the Combining Statements of Non-major Fimds section of this report Convicting the financial section of the report are schedules on capital assets and other financial schedules.

The MD&A is intended to explain the significant changes m financial position and differences in operation between the cunent and prior years. Significant changes fiom the prior year are explained in the following paiQgnphs.

Government-wide Financial Statements

Because this is the first year to report govemmental activities on the new standard, comparison to the prior year is not possible. In subsequent years, this section will discuss and analyze significant difforences. A condensed version of the Statement of Net Position at June 30,2013 follows:

Net Position at Year-end

Casii and Investments Other assets Capital assets

Total assets

Other liabilities Lxing-tenn liabilities

Total liabilities

Net position Investment in capital assets,

Net of related debt Restricted-Assigned fund balance Unrestricted

Total net position

Governmental ActivitlBa

$ 134.494 68.138

978.828

1.181.460

343.455 83,119

426.574

840.051 57.909

(143.074)

$ 754.886

Business^ype Activities

$ 108,676 $ 298,058

1.544,184

1.948,918

98,108 55.914

154,023

1,488,269 44,322

262.305

$ 1.794.896 $

Total Govemment

243.170 364,196

2.523.012

3.130,378

441.563 139.033

580.596

* 2,328,320

102.231 119.231

2,549.782

During the year ended June 30, 2013, the General Fund incurred deficit spending resulting m a deficit fimd balance. Overall the Govemmental Activities net assets decreased by $86,464 and the Business-type Activities net assets increased by $59,835, for an overall net decrease of $26,629, which is conqsrised mosdy of a decrease in oUier assets, capital assets net of an increase in liabilities.

A condensed version of the Statement Activities follows:

Govemmental and Proprietary Activities For the year ended June 30,2013

RftY^imss Program Revenues:

Charges for services

General Revenues:

Taxes

Franchise fees

Licenses and permits

Intergovemmental

Unrestricted Investment eamings

Rental Income

Miscellaneous

Grant revenue

Transfers

Total revenues and transfers

Expenses

General govemment

Public safety

Streets and bridges

Utility services-Water and Sewer

Utility senrices-Gas Operations

Interest and fiscal charges

Total Expenses

Increase (Decrease) In net position

Governmental

Activities

$ 49,459

375.654

88.709

74.858

8i;239

37 4,395

30.304

21.901

(13.948)

712,608

258.088

328.775

205.645

--

8.556

799.072

? (86,464)

Business-type

Artlvltles

$ 648,982

--•

-291

--

57.479

13.948

720,700

---

451.022

209,843

. 660.886

? 59,835

Total

Government

$ 698.441

375.654

86,709

74,858

81,239

328 4,395

30,304

79,360

. 1,433.308

256,096

328.775

206,645

451.022

209.843

8.556

1.459.937

$ (26.629)

Governmental activities. Govemmental program expenses decreased over the prior year by $25,858, and govemmental revenues decreased by $19,616 over the prior year for a net overall increase in operational results of $6,242. The general fond is still operating at a loss which increased the carryover fond deficit to a cumulative deficit of $211,047. The sales tax fond revenues increased by $12^41, over the prior year. The Town had a decrease in recurring expenditures largely due to budget cutbacks. However, the recurring revenues decreased by almost the same amount

Business-type activities. The water and sewer fond liad an operating net income of $7,995 while die natural gas fond also had an operating net income for the year of $37,891 before nonoperating revenues and expenses and any transfers in/out to other fonds. Transfers in from the sales tax iund were made for $17,100 to the water and sewer fond to fond the transfers required into the sinking and reserve fond for the 2011 Sewer Revenue Bonds. The natural gas fond had transfers out of $3,152. The net operational results were net operating income of $25,095 in the water and sewer fond and $34,740 in the natural gas fond.

Budgetary Highlights

Over the course of the year the Town (Council made revisions to the general fond operating budget, sales tax or the debt service fond budget In total, the general fond's expenditures were $6,051 more dian budgeted, and revenues were $97,599 less than bucketed. The overall net variance was $103,648 in excess e?q}enditures. Odier financing sources including transfers in were $17,248 less than budgeted for a total un&vorable budget variance of $120,897 in the general fund. The sales tax revenues were $17,561 more dian budgeted Net of operating transfers out, the sales tax fund ended the year with an overall favorable budget variance of $36,943.

Capital Assets and Debt Administration

Capital Assets

At June 30, 2013, the Town had $6,860,370 invested in capital assets, including police equipment, park and recreation focilities, buildings, and water, sewer and gas lines and construction in progress on the sewer improvement project This amount represents a net increase for die year of approximately $73,330 (current year additions net of deletions).

Capital Assets at Year-End

[.and

Building and Improvements

Machinery and Equipment

Utinty Plant and Equipment

Subtotal

Accumulated depredation

Capital assets, net

Debt Outstanding

$

—

L

Governmental

Activities

2012 2013

24,788 $ 24,786

614,843 614.843

1,516.541 1,589,671

.

2.156,170 2.229.500

1.157.882 1.250.672

998.288 $ 978.828

$

—

L

Business-Type

2012 2013

17.636 $ 17.636

--

4,613.234 4.613.234

4.630.870 4.630.870

2.984.359 3.086.686

1,646.511 $ 1.544.184

Totals

2012

$ 42.422 $

614,843

1,516,541

4.613.234

6.787,040

4.142,241

$ 2.644.799 $

2013

42,422

614,843

1,589,871

4.613.234

6.860.370

4,337.358

2.523.011

At year-end, the Town had a total debt outstanding of $194,691. This amount consisted of one sales tax bond issues and certificates of indebtedness totaling $78,000, one revenue bond payable totaling $55,914 and one capital lease totaling $60,777. This represents an overall net decrease in debt over the previous year of $8,727. More detailed information on the Town's long-term liabilities is presented in Uie notes to die financial statements.

Economic Factors and Next Year's Budgets and Rates

Hie Town is projecting excess expenditures in the General Fund of $172,566, before transfers in fiom the sales tax fond of $270,000 for die fiscal year ending June 30, 2014, leaving a projected surphis of $97,434 af^ other transfers in and out The projected operating net income Ooss) for the water and sewer fund is $53,430 and for the natural gas fimd $32,685, before any transfers to or from other funds. The overall oudook for 2014 is projected to be somewhat improved over the prior two years, however, the prior year deficit in the general fond wUl not be completely eliminated. The administration is working very hard to minimize expenses, sell property to generate revenue and cut back on salaries in order to stay widiin the operational budgets for the fiscal year and reduce the cumulative deficit in die general fund.

Financial Contact

The Town's financial statements are designed to provide our citizens, taxpayers, customers and creditors with a general overview of the Town's finances and to demonstrate the Town's accountability for the revenues it receives. If you have any questions about this report or need additional financial information, please contact Vemell Franklin, die Town Clerk at P. O. Box 145, Simmespoit, LA 71369.

BASIC FINANCIAL STATEMENTS

TOWN OF SIMMESPORT, LOUISIANA STATEMENT OF NET POSITION

JUNE 30,2013

Governmental Activities

Business-type Activities Total

ASSES Cash and Nerest-bearing deposits Receivables:

Utility and other recelvabtes Due from other govemments Accrued Interest Due from other funds

Restricted assets: Cash and cash equivalents Investments

Capital assets (net of accumulated depreciation)

TOTAL ASSETS

LIABILITIES

Accounts Payable Accmed expenses Due to other funds Payables frx)m restricted assets:

Utility deposits Cunent portion of tong-tenn debt Long terni bonds payable

TOTAL UABILmES

NET POSITION Investment In capita] assets, net of related debt Restricted ftir debt service Unrestricted

TOTAL NET POSmON

$134,494

57,820 10,318

0 0

0 0

978.828

$1,181,460

$14,683 15,647

257,487

0 55,658 83.119

426.574

840.051 57.909

(143.074)

$754,886

$39,772

52.847 0

92 243,119

38.663 30,241

1.544.184

$1,948,918

$28,954 0

250

68,904 -

55.914 154,023 .

1,468,269 44,322

262.305

$1,794,898

$174,266

110,667 10,318

92 243,119

38,663 30.241

2.523.011

$3,130,378

$43,637 15,647

257,717

68,904 55.658

139.033 580.597

2,328.320 102,231 119.231

$2.549.782

The accompanying notes are an integral part of this financial statement 10

TOWN OF SIMMESPORT, LOUISIANA

STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30.2013

Net (Expenses) Revenue and Change In Net Assets—-

ACTIVITIES Govemmental activities:

General govemment Public safety:

Police Fire

Streets and bridges Interest and fiscal charges

Total Govemmental Actlvttie

Business-type activities: Water and Sewer Gas Operations

Total Business-type AcUvltle

Total Town of Slmmesport

Expe Charges for

Services

$256,096 $0

Governmental Activities

$(256,096)

Buslnees-Type

Acttvitles Total

$(258,096)

322.849 5,925

205,645 8.556

799.071

451,022 209,844 660.866

1.459.937

49,459 0 0 0

49,459 _.

401.360 247.822 648.982 _

698.441 _

GENERAL REVENUES Taxes Franchise Fees Licenses and permits Intergovemmental Unrestricted Investment eamings Miscellaneous Rental Income

Grant revenue Transfers, net

Total general revenues, special

Items and transfiBrs

Change In net position

Net position beginning of year

Net position end of year

(273,390) (6,925)

(205.645) (8.556)

(749.612)

0 0 0 .

(749.812)

375,854 88,709 74,858 81,239

37 30,304 4,395

21,901 (13.948)

663.149 .

(86,464)

841.350

$764,886

0 0 0 0

0

(49,662) 37.778

f11.884) .

(11.884) .

0 0 0 0

291 0 0

57,479 13.948

71.719

59,835

1.735.081

$1,794,898

(273.390) (5.925)

(205,645) (8,558)

(749.612)

(49,662) 37.778

M1.884)

(761.498)

375,654 88,709 74,858 81,239

328 30,304 4.395

79,380 0

734.867

(26,629)

2.576.411

$2,549,782

The accompanying notes are an integral part of this financial statement

11

TOWN OP SIMMESPORT, LOUISIANA BALANCE SHEET - GOVERNMENTAL FUNDS AND

RECONCIUATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION

JUNE 30,2013

ASSETS Cash and interest-bearing deposits Receivables:

Taxes Accrued Interest Due from other govemments

TOTAL ASSETS

LIABILITIES Accounts payable Accrued expenses Due to other funds

TOTAL UABILTTIES

FUND BALANCE

Rratrtcted Assigned Unassigned

TOTAL FUND BALANCE

TOTAL UABILTTIES AND FUND BALANCE

General Fund

$34,473

21,696 0

10.318

$66,388

$13,881 15.647

247.906 277.435

0 0

(^11.047) (211.047)

$68,388

Sales Tax Fund

$42,111

36.224 0

0

$78,334

$802 0

9.561 10.363

0 67,972

0 67.972

$78,334

Non-Me|or Governmental

Funds

$57,910

0 0 0

$57,910

$0 0 0 0

57.909 1 0

57.910

$57,910

Total Govemmental

Funds

$134,494

57.820 0

10.311

$14,683 15,647

^57.467 287.797

57.909 67.973

(211,047) (85.185)

Amounts reported for govemmental activities In the statement of net position are differrent because:

Capital assets used in govemmental activities are not flnandal resources and therefore are not reported in the funds

Less: accumulated depreclafion Some liabilities. Including bonds payable, are not due and payable

in the cunent period and therefore are not reported In the funds

2,229,470 (1.250.642)

M38.7771

NET POSITION OF GOVERNMENTAL ACTIVITIES $754.886

The accompanying notes are an integral part of this financial statement

12

TOWN OF SIMMESPORT, LOUISIANA STATEMENT OF REVENUES. EXPENDITURES,

AND CHANGES IN FUND BALANCES -GOVERNMENTAL FUNDS

YEAR ENDED JUNE 30,2013

Taxes Licenses Intergovernmental Rnes Franchise Fees Interest income Rental Income Grants and entitlements Miscelianeous

TOTAL REVENUES

EXPENPrrURES General govemment Public safety-Police Public safe^ - Fire Streets and drainage Capital outlay Debt service

TOTAL EXPENDITURES

Excess (deficiency) of

revenues over expenditures

OTHER FINANCING SOURCES fUSES) Proceeds firom bond sales/capital leases Operating transfers in Operating transfers out

General Fund

$33,069 74,858 81,239 49,459 88.709

0 4,395

21.901 10.591

Sales Tax

Fund

$342,585 0 0 0 0

26 0 0 0

Non-M^or Govemmental

Funds

$0 0 0 0 0

11 0 0

19.713

Totals Governmental

Funds

$375,654 74.858 81,239 49,459 88,709

37 4.395

21,901 3P.304

364.221

223.063 297,587

5.925 142,524 73.300 28.050

768.449

^404.228)

73.300 232.752

0

TOTAL OTHER FINANCING SOURCES (USES) 306.052

Excess (deficiency) of revenues over expenditures and other sources (uses)

FUND BALANCES AT BEGINNING OF YEAR

FUND BALANCES AT END OF YEAR

(98.177)

iHlBTO)

342.611

8.944 0 0 0 0 0

8.944

W9.667

0 0

(292.073^

f292.073)

41.593

26.378

19.724

0 0 0

19,713 0

41.428

61.141

(41.416)

0 45.373

0

45.373

3,957

53.953

726.S56

232.007 297,587

5.925 162,237 73,300 97.478

838.534

(111.978)

73,300 278,125

t292073)

59.352

(52,626)

(32.539)

$(211,047] $67.972 $57,910 $(85.165)


TOWN OF SIMMESPORT. LOUISIANA RECONCILIATION OF THE STATEMENT OF REVENUES

EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL TO THE STATEMENT OF ACTIVITIES

YEARENDED JUNE30. 2013

Net change In fund balances - Govemmental Funds $(52,626)

The change In net position reported for govemmental activities is In the Statement of Activities is different because:

Govemmental funds report capital outlays as expenditures. (However, in the statement of activities the cost of those assets is aDocated over their estimated useful lives and reported as depreciation expense ($92,760). This expense exceeded capital expenditures net of dlsposats of ($73,330) in the current period. (19,430)

Debt service payments are deducted as expenditures In the cunent year. On the statement of activities debt payments are not deducted since they reduce the liability on the statement of net assets. I3et}t payments net of new debt issued for ththe current year are added tiack to reconcile to the net change In position. (14.408)

Change in net position of govemmental activities $(86.464)

The accompanying notes are an Integral part of this financial statement 14

TOWN OF SIMMESPORT, LOUISIANA STATEMENT OF NET POSITION - PROPRIETARY FUNDS

JUNE 30,2013

Water& Sewer System

Natural Gas

System Total

Cash and cash equivalents Receivables:

Accrued interest Utility and other receivables

Due from other fiinds Restricted assets:

Cash and cash equivalents Investmerrts

Fixed assets Land Plant and equipment Accumulated depredation

TOTAL ASSETS

UABIUTIES AND FUND EQUITY

Accounts payable Due to other funds Revenue bond payable Payable from restricted assets -

Utittty deposits

$33,222 $6,550 $39,772

Total Liabilities

20 39,605

225,378

15,793 6.700

17,636 3,684,471

(2.225.401)

$22,621 0

55,914

22.493

101.028

72 13.242 17,741

22,870 23,541

0 1.028,763 (881.288)

$6,333 250

0

46.411

52,994

92 52.847

243.119

38.663 30,241

17.638 4,613,234

(3.086.686)

$1,948,918

$28,954 250

55,914

68.904

154.P2?

NET POSITION Investment In capital assets

net of related debt Retained eamings

Restricted for debt service Unrestricted

1.320,792

44,322 231.263

167.477

0 31.021

1,486,269

44.322 282.304

TOTAL NET POSITION $1.596.397 $198.499 $1.794.896

The accompanying notes are an Integral part of this financial statement IS

TOWN OF SIMMESPORT, LOUISIANA STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION PROPRIETARY FUNDS

FOR THE YEAR ENDED JUNE 30, 2013

OPERATING REVENUES Charges for services -

Water services Sewer services Natural gas sales Penalties and service charges

TOTAL OPERATING REVENUES

OPERATING EXPENSES General govemment Water system Sewer system Natural gas system

TOTAL OPERATING EXPENSES

OPERATING INCOME (LOSS)

NONOPERATING REVENUES EXPENSES): Grant revenue Int^est income

TOTAL NONOPERATING REVENUES (EXPENSES) 57.657

Income (loss) before operating transfers

Water & Sewer

System

$226,943 157,827

0 16.590

, 401.360

41,136 157.893 251.993

0

451.022

( 4 9 . 6 ^

57,479 178

57.657

7.995

Natural Gas

System

$0 0

241.520 6.103

247.622

36.920 0 0

172.924

209.844

37.778

0 113

113

37.891

Total

$226,943 157.827 241,520 22.693

648.982

78.055 157.893 251,993 172.924

660.866

(11.884)

57.479 291

57.770

.45.886

OPERATING TRANSFERS IN fOUT):

Operating transfere in (out) 17.100 f 3.152)

TOTAL OPERATING TRANSFERS f3.152) 13.948

NET INCOME (LOSS) 25,095 34.740 59.835

NET POSITION AT BEGINNING OF YEAR 1.571.302 163.759 1.735.061

NET POSITION AT END OF YEAR $1.596.397 $198.499 $1.794.896


TOWN OF SIMMESPORT. LOUISIANA STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30,2013

CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customera Payments to suppllera Payments to employees for salaries and benefits

Net cash provided by operstins acttvitles

Cash flows from capital and realated financing acUviUes: Nonoperating grant revenues Operating transfere in (out) from other funds Increase (decrease) in due (from) to other funds Increase (decrease) in revenue bonds payable

Net cash provided fayf(used) for capital and realated financing acttvitles

Cash fiows from Investing activities: interest received from Interest bearing deposits Net (increase) decrease h restricted cash

Net cash provided t)y/(u8ed) fdr Investtng acttvitles

Net increase (decrease) In cash and cash equivalents

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

Water and Sewer

Fund

$410,504 (191,794) f186.664)

32.146

57,479 17,100

(71,285) (22.000)

<18.706)

178 (3.255)

(3.077)

10.363

22.859

$33,222

Natural Gas Fund

$246,831 (125,526) (61.726) 61.579

0 (3,152)

(41,015) 0

(44.167)

113 (11.755)

(11.642)

5.770

780

$6,660

Total

$659,335 (317,320) (248.290)

93.724

57.479 13.948

(112.300) (22.000)

(62.873)

291 (15.010)

(14.719)

16,132

23.639

$39,771

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTtVlTlES

Operating income (loss)

Depreciation Changes In assets and Ilabiilties:

(increase) decrease in accounts receivable (increase) decrease In other receivables Increase (decrease) In accounts payable Increase (decrease) in customer deposits Increase (decrease) In capital lease payable

Net cash provided by/(used) fbr operating activities

$(49,662)

78.182

6,686 4

(4,320) 3.255

(1.198)

$32.146

$37,778

24.146

(34) 8

(1,554) 1,235

0

$61.579

$(11,884)

102.328

5,851 12

(5,874) 4.490

(1.199)

$93,725


TOWN OF SIMMESPORT. LOUISIANA STATEMENT OF NET POSITION

FIDUCIARY FUNDS JUNE 30,2013

Cash and cash equivalents $746 Due from other funds 14.598

TOTAL ASSETS $15.344

Accounts payable $15.344

TOTAL UABIUriES 1 15.344

NET POSITION $0

The accompanying notes are an Integral part of this financial statement. 18

TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS

JUNE 30,2013

INTRODUCTION

The Town of Slmmesport (Town) was incorporated in 1925, under the provisions of the Lawrason Act; the Town began operating under a Mayor-Council form of government.

The accounting and reporting policies of the Town of Slmmesport confoim to generally accepted accounting principles as applicable to govemments. Such accounting and reporting procedures also conform to the requirements of Louisiana Revised Statutes 24:517 and to the industry audit guide, Audits of State and Local Govemmental Units.

Financial Reporting Entity. Govemment Accounting Standards Board Statement (GASB) 14 established criteria for determining which component units should be considered part of the Town of Slmmesport, Louisiana for financial reporting purposes. The basic criterion for including a potential component unit within the reporting entity is financial accountability. The GASB has set forth criteria to be considered in determining financial accountability. These criteria include:

1. Appointing a voting majority of an organization's goveming body, and; a. The ability of the Town to impose its will on that organization and/or b. The potential for the organization to provide specific financial benefits to or Impose

specific financial burdens on the Town. 2. Organizations, to which the Town does not appoint a voting majority, but are fiscally

dependent on the Town. 3. Organizations for which the reporting entity financial statements would be misleading if data

of the organization is not included because of the nature of significance of the relationship.

Based upon the application of the foregoing criteria, the volunteer fire department as a governmental organization Is not considered a part of the Town and Is thus excluded from the accompanying financial statements. This organization Is staffed by volunteers and although the Town may provide facilities and some of Its financing, no control is exercised over its operations. These financial Include only expenditures paid or incurred directly by the Town.

N0TE1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES

A. Implementation of New Accounting Standards.

In June 2011, the GASB issued Statement No. 63. Financial Repgrting gf Deferred Outflgws of Resources, DefenBd Inflows gf Reseurces, and Net Position. GASB 63 provides guidance fbr reporting defenBd outflows of resources, deferred inflows of resources, and net position in a statement of financial position and related disclosures. The statement of net assets is renamed the statement gf net position and includes four components: assets, deferred outflows of resources, liabilities and deferred inflows of resources. The Town adopted GASB 63 for the fiscal year ended June 30,2013.

in accordance with GASB 34, Basic Financial Statements - and Management's Discussion and Analysis --for State and Local Govemments, the fellowlng statements are presented which differ from the manner In which the tcwn reccrds transacticns and presents financial infcrmatign.

Management's Discussion and Analysis ~ requires the financial statements be acccmpanled by a nan^tive intrgducticn and analytical overview of the Town's financial activities in the fonn of management's discussion and analysis (MD&A). This analysis is similar to the analysis previded in the annual reports of private-sector organizations.

19

TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES fContlnued)

Govemment-Wlde Financial Statements-The repgrting mgdel includes financial statements prepared using full accmal accounting for all the Town's activities. This approach includes not just cunent assets and liabilities, but also capital and other long-term assets as well as long-term liabilities. Accrual accounting also reports all of tiie revenues and costs of providing services each year, not just those received or paid In the current year or soon thereafter. Govemment-wide financial statements including the fciigwing:

Sfafemenf of Net Posif/gn-The statement gf net position Is designed to display the financial position of the Primary Govemment (govemmental and business-type activities). The Town reports capital assets In the govemment-wide statement of net assets and reports depreciation expense-the cost of "using up" capital assets-in the statement of activities. The net position of the Town is broken down into three categories-1) invested in capital assets, net of related debt; 2) restricted; and 3) unrestricted.

Statement of Actlvitles-The statement of activities reports expenses and revenues in a format that focuses on the cost of each of the Town's functlcns. The expense gf individual functicns is ccmpared tg the revenue generated directiy by the functicn. Acccrdingly, the Town had reccrded capital assets and certain other long-term assets and liabilities in the statement of net assets and has reported all revenues and tile cost of prgvlding services under the accrual basis of accounting in the statement of activities.

B. Basic Financial Statements.

Basic financial statements consist of the following:

• Government-wide financial statements.

• Fund financial statements, and

• Nctes to the basic financial statements. The ggvemment-wide financial statements ccnslst gf the statement of net position and the statement of activities and report information on all gf the nonfiduclary activities of the Primary Govemment and its component units. As a general rule, the effect of interfund activity has been eliminated from the govemment-wide financial statements. All intemal balances in the statement of net pgsition have been eliminated, with the exception of those representing balances between the govemmental activities and the t)usiness-type activities, which are presented as intemal balances and eliminated in the total government column. In the statement of activities, transactions between govemmental and business-type activities have not been eliminated.

Both of the govemment-wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovemmental revenues (govemmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Town include general govemment. public safety (police, fire and city court), streets and bridges, health and sanitation and public improvements. The business-type activities of the Town Include water, wastewater and gas operations.

20


NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES fContlnued^

The statement of activities demonsb^tes ttie degree to which the direct and indirect expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or activity. Program revenues include: 1) charges to customers or applicants who purchase, use, or directiy benefit from goods, services, or privileges provided by a given function or activity, and 2) grants and contributions, including special assessments that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate fund financial statements are provided for govemmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the govemment-wide financial statements. Major individual govemmental funds and major Individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measurement Focus. Basis gf Acccuntina and Financial Statement Presentation The govemment-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds and fiduciary funds financial statements. Revenues are recorded when eamed or, for property tax revenues, In the period fbr which levied. Expenses are recorded when a liability is incun^, regardless of the timing of related cash flows.

Govemmental funds financial statements are reported using the curent financial resources measurement focus and the modified-accruai basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are ccliectible within tiie current pericd gr sggn eneugh thereafter tg pay liabilities of the cun«nt period. The Tgwn In general ccnsiders revenues available if they are collected within 180 days after year-end, except fcr property taxes, which the Tgwn considers available if they are collected within 60 days after year-end. Grants and similar items are recognized as revenue as scon as all eligibility requirements have been met. Expenditures are recorded when the related fund liability is incunred, except fbr unmatured interest on general long-term debt which is recognized when due, and certain compensated absences and claims and judgments which are recognized when payment Is due.

For the govemmental funds financial statements, the Town consider all revenues susceptible to accrual and recognizes revenue if the accrual criteria are met. Specifically sales taxes, franchise taxes, licenses, interest, special assessments, charges for services, and other miscellaneous revenue are all considered to be susceptible to accrual and have been recognized as revenue when the qualifying expenditures have been incunBd and all other eligibility requirements have been met and are recorded at tiie time of receipt or eariier. if the susceptible to accrual criteria are met.

In some instances, the Govemment Accounting Standards Board requires a govemment to delay recognition of decreases In net position as expenditures until a future period. In other Instances, govemments are required to delay reccgnitign of Increases In net position as revenues until a future period. In these ciroumstances, defered outflows of resources and deferred inflows of resources result from delayed recognition of expenditures and revenues, respectively.

The accounts of the Town are organized on the basis gf funds. A fund is an independent fiscal and acccunting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonsti^tion compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent witii legal and managerial requirements.

21


N0TE1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued^

The Tcwn repgrts Uie fgligwing majgr ggvemmental funds: The General Fund is the municipality's primary fund. It accounts fgr all financial resources of the general government, except those required to be acccunted fgr in angther fund.

Special revenue funds are used tg acccunt fgr the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures fbr specific purposes.

Debt service funds are used to account for ttie accumulation of resources retained and used fbr ttie payment of principal. Interest, and related ccsts gn thgse Igng-term obligations recorded in ttie general Icng-term gbilgatigns acccunt group.

Capital projects funds are used tc acccunt fcr financial rescurces to be used fgr acquisition or construction of major capital facilities (other than those financed In the proprietary funds and trust funds).

The Town reports tiie following major proprietary funds: Utility funds are used to acccunt fcr gperatigns (a) where the Intent gf the ggveming body is tiiat tile costs (expenses, including depreciation) of providing gggds or services to the general public en a ccntinuing basis be financed cr reccvered primarily through users charges: or (b) where the goveming body has decided that periodic determination of revenues earned, expenses incun^, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Tgwn gf Slmmespgrts enterprise funds are the Water and Wastewater Utility Fund and the Gas Utility Fund.

Addltignaliy, the Tgwn repgrts the fgligwing fund types: Fiduciary funds, which cgnsist sglely gf Agency funds, acccunt fcr assets held by tiie Tgwn as a trustee er as an agent fbr indh lduais or other govemmental units. The only fiduciary fund type used by the Town is the Agency Fund type. Agency funds are custcdiai in nature and do not invglve measurement of results gf gperations. Such funds have no equity accounts since ail assets are due to Individuals or entities at some future time. The funds account for assets held by the Town in an agency capacity for individuals or other govemmental units.

Private-sector standards of accounting and financial reporting issued prior to December 1. 1989, generally are followed In both the govemment-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Gevernmental Acccunting Standards Beard. Govemments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to ttiis same limitation. The govemment has elected not to follow subsequent private-sector guidance.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection witii a proprietary fijnd's principal ongoing operations. The principal operating revenues of tiie Enterprise Funds are charges to customers fbr sales and services. Operating expenses for Enterprise Fund Includes the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting ttiis definition are reported as non-operating revenues and expenses.

When botii resb'lcted and unresblcted resources are available for use, It is the Town's policy to use restricted resources first, then unrestricted resources as they are needed.

22


N0TE1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued^

D. Budgets and Budoetarv Accounting. The Town fgilgws ttiese procedures In establishing ttie budgetary data refiected in ttiese financial statements:

1. The Mayor and Town Clerk prepare a proposed budget and submit it to ttie Board of Aldermen not later than fifteen days prior to the beginning of each fiscal year.

2. A notice Is published and the public Is notified tiiat the proposed budget is available for public inspection. At the same time, a public hearing is called.

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

4. After the holding of tine public hearing and completion of all action necessary to finalize and implement the budget, the budget is adopted through passage of a resolution prior to the commencement gf ttie fiscal year fgr which ttie budget is being adgpted.

5. Budgetary amendments invglving Uie transfer gf funds fix)m gne department, program of function to anottier or Involving Increases in expenditures resulting from revenues exceeding amounts estimated require the approval of the Board of Aidennen.

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

Budgets are adopted on a basis consistent witti accounting principles generally accepted In ttie United States of America and are used as a management control device. Annual budgets are adopted for ttie General Fund, Sales Tax, Debt Service, Capital Projects Funds (if any) and ttie Enterprise Funds. The Town maintains budgetary controls to ensure compliance with legal provisions embodied in ttie appropriated budget approved by ttie Mayor and Board of Aidennen. The level gf budgetary central (ttiat is, the level at which expenditures cannot legally exceed ttie appropriated amcunt) for ttie operating budget is within a fund. Budgeted amounts presented are as originally adopted and as furttier amended by the Board of Aldermen.

E. Depgslts and investments. The Town's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term Investments with original maturities of ttiree months or less from ttie date of acquisition. State law and the Town's investment policy allow the Town to invest in collateralized certificates of deposits, govemment backed securities, commercial paper, ttie state sponsored investment pod. and mutual funds consisting solely of govemment backed securities. Cash equivalents include amounts in time deposits and those investments with original maturities of 90 days or less. Under state law. the Town may deposit funds in demand deposits, interest-bearing demand deposits, money market accounts, or time deposits witti state banks organized under Louisiana law and natignal banks having ttieir principal gfficers in Louisiana. These are classified as investments if ttieir original maturities exceed 90 days; however, if ttie original maturities are 90 days or less, they are classified as cash equivalents. Investments are stated at cost, which approximates maricet.

F. Cash Flow Presentation. For ttie purpose of the statement of cash flows, the Enterprise Funds (Water & Sewer System Utility Fund and Gas Utility Fund) ccnslder ait highly liquid Investments (including restricted assets) witti a matijrity gf three months or less when purchased to be cash equivalents.

G. Bad Debts. Uncollectible amounts due for ad valorem taxes and customers' utility receivables are recognized as bad debts at the time Infcrmatign beccmes available which weuld Indicate ttie unccllectibility gf the particular receivable. Nc allowance for uncollectible amounts was made due to ttie immateriality at June 30. 2013.

23


N0TE1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES fContlnuedl

H. Due to and Due from Other funds Interfund receivables and payables arise fi^m Interfund ti^nsactions and are recorded by all funds affected in the period in which transactions are executed.

I. Long-Term Debt in ttie govemment-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and ottier long-tenn obligations are reported as liabilities in the applicable govemmental activities, business-type activities, or proprietary fund type statement of net assets. Long-Term obligations of ttie Tgwn consisted of a 2004 Sales Tax Bond Issue, and two capital leases at June 30.2013.

J. Accumulated Unpaid Vacation and Otiier Emnlovee Benefits. Town employees are eligible for vacation or sick leave in accordance with the Town's Employee Handbook & Policy Manual adopted in December 2009. The policy does not allow for accumulation of vacation If not used in the year granted. Sick leave Is lost upon separation from emplgyment ttierefore there are no accumulations gf such absences tc be accrued as a liability in these financial statements. It is the Town's policy to recognize the costs of compensated absences when actually paid to employees.

At June 30, 2013. vested leave benefits have not been accrued as required by GASB Statement No. 16 "Accounting for Compensated Absences", due tc immateriality.

K. Capital Assets Under GASB Statement Ng. 34, ail capital assets, whether cwned by ggvemmental activities cr business-type activities are recorded and depreciated in ttie gcvemment-wide financial statements. No long-term capital assets or depreciation are shown in ttie govemmental fijnds financial statements.

Capital assets, which Include property, plant, equipment, and Infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the govemment-wide financial statements. Capital assets are capitalized at historical ccst gr estimated ccst if historical cost is not available. Donated assets are recorded as capital assets at their estimated fair maricet value at ttie date cf dgnatign.

The ccst gf ngrmal maintenance and repairs ttiat dc not add to the value of the asset or materially extend assets lives are not capitalized.

Major gutlays fgr capital assets and improvements are capitalized as projects are ccnstructed. Interest Incun^ during the ccnstructicn phase gf capital assets cf business-type activities is included as part gf the capitalized value gf the assets ccnstiticted

All capital assets, ottier ttian land, are depreciated using the straight-line method over ttie following useful lives: Years

Land Improvements (Infrastructure) 10-50 Building and building improvements 20 - 50 Service vehicles and moveable equipment 7-15 Heavy equipment 10 - 20 Office fumiture and fixtures 5*10

The proprietary funds are accounted for on a cost of service or 'capital maintenance" measurement focus, and alt assets and all liabilities (whettier cunent or noncurrent) associated with its activity are included on its balance sheet.

24


N0TE1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES fContinuedl

Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense against operations. Depreciation has been provided over the estimated useful lives using the sti^ight-llne method over the following useful lives:

Water and Natural Gas Sewer System gystOT

Water wells 40 Lines and meters 40 33 Pumps, Mot(m and Compressors 40 33 Service Vehkdes and Moveable Equip 5 5 Office Fumiture & Fbctures 5 5

All fixed assets are stated at historical cost (cash plus trade-in allowances, if applicable). Donated fixed assets, if any, are stated at their estimated fair value on the date donated.

L. Fund Eouitvof Fund Financial Statements

The town adopted ttie provisions of GASB 54 Fund Balance Reporting and Govemmental Fund Type Definitions for ttie year ended June 30, 2013. GASB 54 requires the fund balance amounts to be reported within ttie fund balance categories as follows:

Noivspendable - Fund balance that is not in spendable form or is legally or contractually required to be maintained intact This category Includes items that are not easily converted to cash such as inventories or prepaid items. Restricted - Fund balance ttiat can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. Committed - Fund balance that can only be used for specific purposes determined by ttie Town's highest level of decision making auttiority. Committed amounts cannot be used for any other purpose unless the Board removes or changes the specified use by taking the same type of action it employed to previously commit ttie funds. Committed fund balance is the result of either a policy of the Town or motions passed at a Town meeting committing the funds. Assigned - Fund balance ttiat Is constrained by the Town's intent to be used fbr specific purposes, but are neither restricted nor committed. Intent should be expressed by the Town. Unassigned - Fund balance that Is the residual classification for ttie general fund.

M. Estimates The preparation of the finandal statements in conformity with accounting principles generally accepted In ttie United States of America require management tg make estimates and assumptiens that affect ttie reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of support and expenses during the reporting period. Actual results could differ from those estimates.

NOTE 2. CASH AND CASH EQUIVALENTS

Under state law, the Town may deposit fijnds within a fiscal agent bank organized under the laws of the State of Louisiana, the laws of any ottier state in the Union, or the laws of ttie United States. The Town may invest In certificates and time deposits of ttie state banks grganized under Lguisiana law and natignal banks having principal cffices in Lguisiana. At June 30, 2013, the Tgwn had cash and cash equivalents (bggk balance) totaling $243,916 as follows:

Demand deposits $ 213,675 Time deposits 30.241

Total S 243.916

25


NOTE 2. CASH AND CASH EQUIVALENTS (Continued^

Custodial credit risk for deposits is the risk that in the event of the failure gf a depgsitory financial institution, the Town's deposits may not be recovered cr will ngt be able tg recover ccilateral securities that are in the possessicn gf an gutside party. These depgslts are stated at cost, which approximates market. Under state law, these deposits (or the resulting bank balance) must be secured by federal deposit insurance or similar federal security or the pledge of securities owned by the fiscal agent bank. The maricet value of ttie pledged securities plus the federal deposit insurance must at alt times equal the amount on deposit witti ttie fiscal agenL These securities are held In ttie name Town or the pledging fiscal agent bank in a holding or custodial bank ttiat is mutually acceptable to both parties.

Deposit balances (bank balances) at June 30.2013, are secured as follows:

Federal deposit insurance $ 263,183 Pledged securities i

Total $283,183

As of June 30,2013, the Town's total bank balances were fully insured by Federal Deposit Insurance.

NOTE 3. INVESTMENTS

At June 30. 2013, the Town held investments totaling $30,241 in 180 day certificates of deposit. These investinents are stated at cost, which approximate maricet, and are secured from risk by federal deposit Insurance (see note 2).

NOTE 4. RECEIVABLES

Receivables totaling $31,914 in the general fund consisted of ttie following at June 30,2013:

Other receivables Franchise fees $ 20,890 Ad Valorem Taxes 706

Total $ 21.596

Due from other govemments Video Poker Revenue $ 6,963 Casino Gaming Revenue 2,049 Beer Tax 1,307

Total $ 10.316

Sales tax collections receivable in ttie amount of $36,224 are reflected In the sales tax fiind.

26


NOTE 4. RECEIVABLES (Continued^

In the enterprise fund unbilled utility receivables were immaterial at June 30, 2013. Billed receivables balances at June 30,2013, consisted of ttie following:

UtiHtyBiHinos Current billings Over 30 days

Water and Sewer Svstem

$ 34.726 4.879

$ 39.605

Natural Gas 5y9tem Totals

$ 10,372 $ 45.098 2,870 7,749

$ 13,242 $ 52.847

NOTE 5. RESTRICTED ASSETS - PROPRIETARY FUND TYPE

Restricted assets were applicable to the following at June 30,2013:

Customer Meter Deposits S U « ^

Customer Meter Deposits exceeded the amount held in cash by $10,521 in the Natural Gas Fund.

NOTE a INTERFUND RECEIVABLES. PAYABLES

The following is a summary of interfund receivable and payable batances at June 30.2013: Interfund Interfund

E General Fund Sales Tax Fund Enterprise Funds Agency Fund

Totals

NOTE 7. CHANGES IN AGENCY FUND

The following is a summary of changes In assets and liabilities of the Agency Fund for the year ended June 30,2013:

Balance Balance Assets 7/1/2012 Additions Deletions 6/30/2013

Cash $ 3,365 $ 586,494 $ 589,113 $ 746 Due from ottier funds 34.850 594.011 614.263 14.598

$ 38.215 $ 1.180.505 $ 1.203.376 $ 15.344 • • ^ • ^ ^ ^ • • ^ s ^ ^ B ^ ^ * ^ ^ ^ M a ^ ^ H ^ ^ ^ ^ ^ ^ ^ ^ ^ a ^ ^ b ^ i ^ ^ ^ ^ a a i R « s B ^ ^ a : a s n A ^ ^ i ^

Liabilities Payables $ 38,215 $ 634,546 $ 657,418 $ 15,344 Due to ottier funds . . . .

Recelvablea $

-243.119

14.598 $ 257.717

$

1

Payables 247,906

9,561 250 .

257.717

38.215 $ 634.546 $ 657,418 $ 15.344

27

TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS. (Continued)

NOTE 8. CAPITAL ASSETS Capital assets and depreciation activity as of and for ttie year ended June 30, 2013, are as follows:

Governmental activities

Capita) assets not being depredated:

Land

Capital assets t)elng deofeciated:

Building and improvements

Madilnery and equipment

Total capital assets being depreciated

Less accumulated depredation for

Building and improvements

Machinery and equipment

Total accumulated depredation

Total govemment assets

being depreciated, net

For the year ended June 30,2013, depredation expense was $92,760.

s

$

_L

$

±_

$

Balance ifUitnz

24,786

614,843

1,516,540

2,131,383

187,644

970,237

X1S7,881

973,502

$

,

J_

$

T

Additions

73,300

73,300

16,609

76,151

92,760

Deletions Balance

6/30/2013

24,786

614,843

1,589,840

2,204.683

204,253

1,046,388

1,250,641

954.042

Business-type acthrities:

Captial assets not being depredated:

Land

Construction In progress

Capital assets being depredated:

WatQ- system plant and equipment

Sevifer system plant and equipment

Gas system plant and equipment

Total capital assets being depreciated

Less accumulated depreciation for

Water syston plant and equipment

Sewer system plant and equipment

Gas system plant and equipment

Total accumulated depredation

Total Business-type assets being depredated, net

17,636

42,947

60,583 $

$ 1,267,871 $

2,273,658

1,028,763

$ 4,570,292 S

$ 1.165,751 $

981,217

837,395

1,585,929

For tiie year ended June 30,2013, depredation expense was $102,328.

17,982 $

60,453

23,892 _

$ 2,984.363 $ 102,327 $

17,636

42,947

60,583

1,267,871

2,273,658

1,028,763

4,570.291

1,183,733

1,041,670

861,287

3,086,690

1,483,601

28

Generel Obllflatlon

$ 115,000 -

37,000 $ 78,000

Revenue Bonds

$ 77.914 -

22.000 $ 55.914

Capital Leases

$ 10,504 73,330 23.057

$ 60.777

Total $ 203.418

73.330 82.057

$ 194.691


NOTE 9. CHANGES IN LONG-TERM DEBT

The following is a summary of long-term debt transactions of the Town for the year ended June 30,2013:

Payable at 6/30/2012 Add: New Debt Issued Less: Payments Made Payable at 6/30/2013

The Town had only one debt Issue payable at June 30, 2013, which is secured by excess general fund revenues and proceeds of the 1% sales tax as follows:

Outstanding General Obiioatlon Debt Balance

$36^000 - 2004 Sales Tax Bonds dated April 6.2004 (refunding of bonds dated March 13,1990), due in annual installments of $28,000 to $40,000 with Interest of 3.85%; matures March 1.2015 S yaooq

A total of $57,909 is available in the Debt Service Fund to sen/ice the General Obligation Debt

The annual requirements to amortize ail debt outstanding as of June 30, 2013, including interest payments of $4,543 are as follows:

Year Ending

2014 $ 41.003 2015 41.540

$ 82.543 Revenue Bonds Pavable

$236,000 - 2011 Sewer Revenue Bonds not yet fully funded as of June 30, 2013 Initial draws on total bonds approved for $236,000 S 55.914

As of June 30, 2013. the Town had a total of $16,206 in the Sinking Fund and $6,116 in the Reserve Fund. The bonds had not yet been fully funded; however, payments started in June 2013. The annual requirements to amortize the cunent balance outstanding as of June 30, 2013. including interest payments of $435 are as follows:

Year Ending Jwn^ 3q

2014 $ 2015 2016 2016

$

22.691 11,430 11,168 11.060 56.349

29

TOWN OF SIMMESPORT. LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)

NOTE 9. CHANGES IN LONG-TERM DEBT fContlnuec»

Capital Leases

The Town of Slmmesport entered into a lease agreement on September 12, 2012, as lessee for financing the acquisition of a two Police units fdr the Police Department in the General Fund. The lease agreement qualifies as a capital lease for accounting purposes (lease contains an option to purchase the leased property) and therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. The canning value of the assets under capital lease is $59,886 at June 30,2013.

The following is a schedule of the future minimum tease payments under this capital lease, and the present value of the net minimum lease payments at June 30,2013:

2014 $ 20,307 2015 20,307 2015 20.307 2017 5.077

65,998 Less: amount representing interest (5.221)

Present value of future lease payments $ 60,777

NOTE 10. AD VALOREM TAXES

For the year ended June 30, 2013, taxes of 4.98 mills were levied on property with assessed valuations totaling $5,010,120 and were dedicated as follows:

General Corporate 4.98

Total tax levied was $24,951 for the tax year ended June 30th. Taxes receivable at June 30, 2013, were $706.

Property taxes attach as an enforceable lien on property as of March 2nd of each year. Taxes are levied In November of each year and payable by March 1st of the year following. The Town bills and collects its own property taxes and they are recognized as revenues when levied to the extent that they result in cunent receivables. Property assessments are based on valuations made by the tax assessor of Avoyelles Parish.

NOTE 11. SALES TAX COLLECTION AGREEMENT

On June 5,1992, the Town of Slmmesport, Louisiana entered into an Intergovemmental agreement with the Avoyelles Parish School Boand fdr a one year period commencing on July 1,1992. whereby the School Board will collect the sales and use taxes, including Interest, penalties, fees and cost, levied by the Town of Slmmesport Louisiana under the Town's ordinances. The collection fee charged is a monthly fee of 1 1/2% of the gross tax revenues collections to the Town of Slmmesport Tax collections are remitted on a monthty basis no later than the 10th day of each month after reasonable and necessary cost and expenses of coiiectton in administration of the taxes have been deducted, including the collection fee. This agreement is renewed automatically each year.

30


NOTE 12. GENERAL OBUGATION SINKING FUND REQUIREMENTS

A. Under the terms of the $362,000 - 2004 Sales Tax Bond dated April 8, 2004, the Town is required to establish and maintain the following accounts for payment principal and interest on the Bond:

1. "Sales Tax Bonds, Series 2004, Sinking Fund" and to transfer thereto, on a monthly basis, an amount constituting 1/12th of the next maturing installment of principal and interest on ttte Bond. The balance in the sinidng fund as of June 30,2013, totaled $49,450.

2. "Sales Tax Bond, Series 2004, Reserve Fund" is to be maintained solely for the purpose of paying the principal of and interest on bonds payable from the Debt Service Fund as to which there would othenvise be default. The Reserve is required to be funded In an amount equal to the lesser of (I) 10% of the principal amount of the bonds and (11) the highest combined principal and interest requirements for any succeeding bond year on the bonds. The balance in the reserve fund as of June 30,2013, totaled $8,459.

For the period under audit, ail required transfers to the funds were met in all material respects since the combined balance of both the sinking and reserve fiinds was within the amounts required fbr the bond issue.

NOTE 13. RETIREMENT COMMITMENTS

Poltoe officers are eligible to participate in the Municipal and State Police Retirement System of Louisiana, a multiple-employer public employee retirement system. For the current year, however, no one in the police department chose to participate.

All employees of the Town are covered by the Social Security System.

NOTE 14. DEFERRED COMPENSATION PLAN

Beginning in January 1990 the Town elected to participate in the Louisiana Public Employees Defered Compensation Plan State of Louisiana, a component unit of the State of Louisiana. The plan offers its participants (eligible public employees) a defended compensation plan created in accordance with intemal Revenue Code Section 457. The plan permits them to defer a portion of their salary until future years. The deferred compensation Is not available to employees until terminatton, retirement, death, or unforeseeable emergency. Complete disclosures relating to the Plan are included in the separately issued audit report for the Plan, available from the Louisiana Legislative Auditor, Post Office Box 94397, Baton Rouge, Louisiana 70804-9397.

31


NOTE 15. FRANCHISE AGREEMENTS

The Town entered into franchise agreements with various public utility companies that provide services within the corporate limits of the Town. A summary of each such agreement follows:

1. CenturvTel (formeriv Central Louisiana Teieohone Comoanv^ - Effective July 1.2012 for a period of five (5) years. Franchise fee is based on four percent (4%) of gross revenues derived from exchange station sen/ices rendered within the city limits of the Town. Fees are payable quarteriy within thirty (30) days following the expiration of the quarter. As additional consideration the Town ts provided free of charge, four (4) local access lines.

2. Central Louisiana Electric Comoanv. Inc. - (CLECO) - Effective July 22, 2009 fbr a period of fifteen (15) years. Franchise fee Is based on four percent (4%) of the gross receipts firom sale and delivery of electric energy fbr residential and commercial purposes billed on commercial and residential rates within the limits of the Town. Fees are payable quarteriy within thirty (30) days of the end of the quarter. Other franchise provisions are as follows:

1. Franchise payments will be reduced in an amount equal to the sum of any new or increased taxes of any nature whatsoever levied by the municipality and payable by CLECO (except unifbmfi ad valorem taxes, based on property values). 2. CLECO will provide free electric service to the Town and reduced street light rates until July 2024. Thereafter, prevailing commercial rates shall apply and street lights rates will increase.

3. Cable or Video Franchise agreement - Effective November 6, 2010, the town adopted an ordinance requiring all persons or entities providing cable of video services to the citizens of Slmmesport to pay a franchise fee of four percent (4%) of the cable or video service provider's gross revenues derived from operations within the Slmmesport municipal limits.

NOTE 16. SUBSEQUENT EVENTS

Subsequent events were evaluated through November 26,2013, whk:h is the date the financial statements were available to be Issued. No material events have occured since June 30, 2013, that required recognition or disclosure In the financial statements other than as previously mentioned.

NOTE 17, LITIGATION

As of the date of this report, we have been advised by legal counsel that the town is not involved in any litigation and there is no material pending or threatened litigation, claims or assessments.

32


NOTE 18. GOING CONCERN

The Town Incun^ excessive spending In the General Fund resulting in a cumulative deficit fund balance of $211,047 for the fiscal year ended June 30,2013. Although the Town's overall cash position increased by $74,129, which includes an increase in restricted cash held fbr customer security deposits by $15,011, the Town stili incuHBd deficit spending in the general fund of $98,177. Ail of the other funds of the Town operated with a surplus or profit for the fiscal year ended June 30, 2013. The deficit in the general fund is due largely to a decline in recuning revenue sources over the prior years.

Effective January 2013, the Mayor and Council approved the following actions to help reduce spending and reverse some of the financial impact of the cumulative overspending in the general fund:

• released two full-time employees • reduced the ofRce staff to a thirty-two hour wori( week • eliminated all overtime • initiated a reduction in employee benefits paid by the Town • approved the sale of commerolal property and Police units that are not needed by the Town to

generate revenue and reduce insurance costs • limited spending by tightening the purchase order approval process « appointed council members to committees to look into increasing occupational license fees and other

revenue sources • mandated a reduction in scheduling of Police Officers to minimize Police payroll expense and

encouraged the use of one patrol car per shift to reduce operating costs • eliminated ail festivals and Cliristmas parties being hosted by the Town • minimizing billing adjustments to utility bills and tightening the collection procedures to reduce the

amount of write-offs

The Town is continuing with the listed actions above and the Mayor and Council members have taken a more active role in the overall adminlstratton of the Town and overseeing the daily operations in an attempt to overcome this uncertain financial situation.

33

REQUIRED SUPPLEMENTAL INFORMATION (PART II)

34

TOWN OF SIMMESPORT. LOUISIANA BUDGETARY COMPARISON SCHEDULE

GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2013

REVENUES Taxes Franchise fees Ucenses and penults Intergovemmental Rnes and forfeits Miscellaneous Rental Income Grants and entitlements

TOTAL REVENUES

Pffl^PITtiR^ General govemment Police Rre Streets and drainage Debt sen/ice Capital outiay

TOTAL EXPENOrrURES

Deficiency of revenues over expenditures

OTHER FINANCING SOURCEa itlSES^ Operating transfers in Operating transfers out Proceeds from capital lease

TOTAL OTHER FINANCING SOURCES (USE

Excess (deficiency} of revenues and other over expenditures and other uses

FUND BALANCES AT BEGINNINO OF YEAR


Original Budget

$32,200 129.800 86,150

103.700 77,400 12.950 5,500

0

Final Budget

$32,200 129.800 81.460 91.700 77,400 25,950 4.056

19.264

Actual

$33,069 88.709 74,858 81,239 49.459 10,591 4.396

21.901

Varfance withniral

Budget Positive

(NegaUve)

$869 (41.091) (6.S92)

(10.461) (27.041) (15,359)

339 2.637

447.700

650.150

(202.4501

250,000 0 0_

250.000

»V7,550

461.820

762.400

f300.5601

250.000 0

73.300

323.300

m j ^

364.221

768.451

(404,228)

232,752 0

73,300

306.052

(98,177)

f 112.8701

$(211,047)

(97.599)

203,750 266,650

260 146,600 27,700

5.000

238,200 285.800

4.850 132,550 27,700 73.30P

223,063 297,587

5.925 142.524 26.050 73.3P0

15.137 (11.767)

(1.075) (9.974) 1,650

0

(6.051)

(103.648)

0 (17.248)

0 Q

(17.248)

$(120.8971


TOWN OF SIMMESPORT. LOUISIANA BUDGETARY COMPARISON SCHEDULE

SALES TAX FUND FOR THE YEAR ENDED JUNE 30. 2013

Taxes

Miscellaneous

TOTAL REVENUES

EXPENPrrURES

General govemment

TOTAL E)(PENDrTURES Excess (deficiency) of revenues over expenditures

QTH^R FiwAWPiNQ spyRg^ m m Operating transfisrs In Operating transfers out

TOTAL OTHER HNANCING SOURCES (USES)

Excess (deficiency) of revenues over expenditures and other sources (uses)



Original Budget

$325,000 50

325.050

4.400

4.400

320.650

0 (316,000)

(316.000)

$4,650

Final Budget

$325,000 50

325.050 .

4.400

4.400

320.6J2. .

0 (316.000)

(316,000) ,

K65a

Actual

$342,585 26

342.611

8.944

8 .W

333.667

0 (292.073)

f292.0731

41,593

26.378

$67,972

Variance with Final

Budget Positive

(Negative)

$17,685 (24)

17.561

(4.5441

(4.544)

13.017

0 23.927

23.927

$36,643

The accompanylns notes are an Integral part of this financial statement 36

TOWN OF SIMMESPORT, LOUISIANA NOTES TO BUDGETARY COMPARISON SCHEDULES

For the Year Ended June 30,2013

Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America and are used as a management control device. Annual budgets are adopted for the General Fund. Sales Tax Fund. Debt Service Funds, Capital Projects Funds (ff any) and the Enterprise Funds. The Town maintains budgetary controls to ensure compliance with legal provisions embodied in the appropriated budget approved by the Mayor and Board of Aldermen. The level of budgetary control (that is. the level at which expenditures cannot legally exceed the appropriated amount) for the operating budget is within a fund. Budgeted amounts presented are as originally adopted. There were no amendments for the cunent fiscal year. Budgetary appropriation lapse and the end of each fiscal year and must be re-approprlated for the following year in order to be expended.

37

OTHER SUPPLEMENTAL INFORMATION

38

TOWN OF SIMMESPORT, LOUISIANA GENERAL FUND

STATEMENT OF FUNCTIONAL EXPENDITURES DETAIL BUDGET (GAAP BASIS) AND ACTUAL

YEAR ENDED JUNE 30, 2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30,2012

Q^^B#,qQYBRHWSMT Salaries Payroll taxes Employee t>enefits Legal and auditing Insurance Assessor fees Miscellaneous OfRce supplies and postage Publications and printing Dues and sutiscripttons Town haD expense Telephone expense Dnig testing expense (>)mmunlty center expenses Travel Bank charges Election cost Repairs and maintenance Parte expenses Qvic center expense Advertising Expense Festival expense Tourist center expense Material and supplies Mardi Gras expenses Coroner's Expense Engineering Fees Council on Aging Penalty and Rnes Festival expense

Entertainment - Slmmesport cares Repairs & maintenance - fsstiv Perty expense - Slmmesport cares Pageant expense - ftetlval Advertising - festival Dues & suliscrtptlons - festival Materials & supplies - festival Security • festival expense Donations to Other Org - SAYA Dues & Subscriptions - SAYA Event expense - SAYA Fuel-SAYA Meals & entertainment - SAYA Miscellaneous-SAYA Penalties-SAYA Postage-SAYA Sales tax expense-SAYA Supplies-SAYA Travel-SAYA Capital Outiay-SAYA

TOTAL GENERAL GOVERNMENT

Final Budget

$84,700 7,500

0 21.200 17.000

1.800 500

7,800 1.300

900 10,000 9.300 1.500

0 5.300

0 0

9,850 11.700 9.000

100 0 0

800 250

2.700 0

6.800 0 0 0 0 0 0 0 0 0 0 0 0

20.oon 0 0 0 0 0 0 0 0 0 Q .

230.000 .

{CONTINUED) 39

Actual

$80,117 6,065 7.340

18,696 19,363

1.475 3.495 2.795 2.196

859 7,418

10,709 758

9,484 4.731

30 222

16,685 10.405

0 65 0

347 0 0 0 0

3.201 1.833

0 0 0

792 6.503

0 505

0 0 0

275 109

5.940 0

231 30 12 27

120 212

0 0

223.063

Variance-Favorable

$4,583 1.435

(7.340) 2.504

(2.363) 325

(2.995) 5.005 (896)

41 2.582

(1,409) 742

(9,484) 569 (30)

(222) (6.835) 1.295 9.000

15 0

(347) 800 250

2.700 0

3.599 (1.833)

0 0 0

(792) (6.503)

0 (505)

0 0 0

(275) 19,891 (5.940)

0 (231)

(30) (12) (27)

(120) (212)

0 0

6.937

June 30. 2012

Actual

93.301 7,066 5.994

21.524 17.244

1,477 5.651 6.922 1,471

732 9,563 9,481 1,879 7,990

15,565 284

0 6,035 5,330

0 85 29

387 2,012

404 2,350 2.500 6.630 3.457 7.041 3.225

125 0

724 1.750

320 674

3.065 1.477

236 23

12.832 11 20 42 11 44 63

1.997 80

4.0QQ

273.125

TOWN OF SIMMESPORT. LOUISIANA GENERAL FUND


YEAR ENDED JUNE 30,2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30,2012

POLICE Salaries Payroll taxes Employee t)enefit3 Insurance Miscellaneous Telephone expense Travel Expense Witness Fee Magistrate fees Prisoner rations Medical expenses Police uniforms Police academy Material and supplies Repairs & Maintenance Police supplies Patrol car expenses Patrol car- fuel Crisis Response team

TOTAL POUCE

3TR^RT9AWPPBAIWAQR Salaries Payroll taxes Emptovee ben^its Insurance Miscellaneous Telephone Utilities Repairs and maintenance Pari( expenses Medical Expenses TrBCtor expense Tractor expense- fuel FueVMower-weedeaters Uniforms Vapor lights Material and supplies Truck expenses Trucic expense- fuel

TOTAL STREETS AND DRAINAGE

Final Budget

209.000 15.000

0 16.000

0 2.000

0 1.800

600 1.000

0 2,000 1,600

0 800

11.000 25.000

0 0

285.800

35.000 3.000

0 3.100

250 1.450

900 6.800

50 50

10,900 0

150 200

36.000 23.200 11.500

D.

132.550

Actual

198.385 16,013 7.340

23,410 4.864 3,401 4.068 1,650

0 948 80

1.418 1,000

53 0

6,280 2.891

24.733 (947)

297.587.

34.044 2.743 8.416 2.229

651 1.265

923 7.167

0 0

7,710 3.569

494 158

38.176 22.884 3.641 B.253.

142.524.

Variance -Favorable

(Unfavorable)

10,615 (1,013) (7.340) (7,410) (4.864) (1.401) (4.068)

ISO 600 52

(80) 582 600 (53) 800

2,720 22.109

(24,733) 947

(11.787)

956 257

(8.416) 871

(601) 185 (231

(367) 50 50

3.190 (3.569)

(344) 42

(2.176) 316

7.859 « 9 M 1

(9.974)

June 30. 2012

Actual

188.135 15.233 9,996

27.888 280

1.989 235

1.450 500

3,810 0

1.610 0

15 660

10.456 11.162 24.176

0

297.575,

42.534 2.883

13.335 6.061

127 675

1.024 6.806

38 44

7,361 1.173

199 0

40.952 19.793 2.448

1R7fi7

162.210

(CONTINUED) 40

TOWN OF SIMMESPORT, LOUISIANA GENERAL FUND


YEAR ENDED JUNE 30, 2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30,2012

FIRE Miscelianeous Appropriations VFD Telephone expense Utilities

TOTAL FIRE

Final Budget

250 0 0

4.600

4.e9Q

Actual

0 1.000 1.735 3.190

5,925

Variance -Favorable

(Unfavorable)

250 (1.000) (1.735) 1.410

(1.0751

June 30, 2012

Actual

0 0

1,115 1.350

2.485

DEBT SERVICE Lease payments 27.700 26.050 AA 20.219

TOTAL DEBT SERVICE 27.700 26.050 20.219

CAPITAL OUTUY Police Streets and sanitation General govemment

73,300 0

8.200

73.300 0

. 0

0 0

8.200

0 3,200

110.468

TOTAL CAPITAL OUTLAY 81.500 73.300 8.200 113.688

TOTAL EXPENDfTURES S762.400 8768.449 s(e.osoi $869.282

(CONCLUDED) 41

TOWN OF SIMMESPORT, LOUISIANA ENTERPRISE FUND


YEAR ENDED JUNE 3D, 2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30. 2012

WATPRSY9TBM Salaries - Water Payroll tax expense Employee t>enef)ts Insurance Mlscenaneous Telephone expense Utilities Repairs and maintenance Lease payments Office supplies and postage Dues and subscriptions Capital projects Travel expense Material and supplies Truck expenses Truck &q3ense- Fuel Chemicals Depredation Interest Expense Bad debt expense Bank charges Interest expense

TOTAL WATER SYSTEM

g^WPR^YSTPM Salaries - Sewer Payroll taxes Employee benefits Insurance Miscellaneous Utilities Repairs and maintenance Telephone Dues & Subscriptions Construction Cost Engineering Fees Materia] and supplies Truck expenses Truck Expense- Fuel Chemicals Depreciation Bad debt expense

TOTAL SEWER SYSTEM

Final Budget

$70,000 6.000

0 6.nnn

400 300

17,500 3.000

0 500 300

2.500 500

6.230 0

5,000 3,000

18.000 0

500 0

500

142.230

67.500 5,500

0 800 fiOO

31.000 12,000

500 0 0 0

4.500 0

1.500 4.000

60.000 600

188.300

Actual

$67,516 5.029 7,340

14,277 1.544

469 18,577 3.669 1.204

0 175

0 511

10.354 166

3,365 3,646

17.982 0 0

1,088 979

157.893

64,628 4.650 7,340 5,052 1.478

30,538 11.550

239 250

49.454 8.025 1,978

0 1.511 4,900

60.200 0

.2?1,®3

Variance-Favorable

(Unfavorable)

$2,484 971

(7.340) [Burn (1.144)

(169) (1.077)

(669) (1.204)

500 125

2.500 (11)

(2.124) (168)

1.635 (646)

18 0

500 (1.088)

(479)

(15.6631

2.872 650

(7,340) (4.252)

(978) 462 450 261

(250) (49.454)

(8,025) 2,522

0 (11)

(900) (200) 500

(63.6931

June 30, 2012

Actual

68.469 5,031 7,028

10.679 0

297 17,769 19.927

969 373 600

0 480

19.409 575

3,756 3,044

17.982 539

0 92 0

177.017

64.754 4.749

11,988 5.879

0 29.315 21,548

496 495

81.131 19.475 6,526

42 1,312 6,455

60.788 0

314.953

(CONTINUED) 42




G ^ N E f ^ AND ADMINISTRATIVR Salaries Payroll taxes Employee benefits Legal and auditing Insurance Miscellaneous Office supplies and postage Bank service charges Penalties Lease payments Dues and subscriptions Material and supplies Repairs and maintenance

TOTAL GENERAL AND ADMINISTRATIVE

TOTAL GENERAL AND AOIMINtSTRATlVE WATER AND SEWER

Final Budget

25.000 1,800

0 4,500

0 100

1,800 150

0 1.800

200 0 0

35.350

$385.680

Actual

24.810 1,905 3,146 4,815 1.592

0 1.795

216 568 576

0 1,216

m 41.135

$451,022

Variance -Favorable

(Unfavorable)

190 (105)

(3,148) (316)

(1.592) 100

5 (66)

(568) 1,224

200 (1.216)

(4961

(5.7851

$(85.142)

June 30, 2012

Actual

35.395 2,575 5.826 4,549 2.626

0 2,269

184 0

1,831 125

1,144

367 56.891

$548,861

(CONCLUDED) 43




NATURAL GAS SYSTEM Salaries Payroll taxes Employee t>enefits Insurance Miscellaneous impairs and maintenance Lease payments Telephone Utilities Office supplies Medical Expense Matertal and supplies Truck expense Truck expense - fuel Depredation Gas purchase

TOTAL NATURAL GAS SYSTEM

GENERAL AND ADMINISTRATIVE Salaries Payroll taxes Employee benefits Legal and auditing Insurance Miscellaneous Office supplies and postage Lease payment Dues and subscriptions Bank charges Material and supplies Repairs and maintenance Capital outiay

TOTAL GENERAL AND ADMINISTRATIVE

TOTAL GENERAL AND ADMINISTRATIVE NATURAL GAS

Final Budget

$30,000 3.000

0 11.000

1.000 6,000 2.500 2,000

0 500

0 5.000

0 6,500

26,000 80.000

173,afi.

18.000 1,500

0 5.000

0 0

2.500 1.600

0 100

0 0

M7D0

$207.200

Actual

$26,145 1.943 7,340

15.370 598

6.600 1.685

843 1.030

0 410

6.896 987

6,508 24.146 73.423

172.924

17,608 1.350 7,340 4.815 1.274

515 1.682 1.773

0 65 0

496 0

36820

Variance-Favorable

$3,855 1.057

(7.340) (4.370)

402 (600) 615

1,157 (1,030)

500 (410) (696) (987)

(8) 1,854 6.577

?76

392 150

(7,340) 185

(1.274) (515) 618

(173) 0

35 0

(496) S.OQH

(3230)

$j2^644)

June 30, 2012

Actual

32,745 2.432 7.003

23,180 0

13.652 2,973

738 1.330

481 0

13.542 865

6,130 24.389 70.449

199.908

30.906 2.244 7.026 4.549

204 0

2.269 1.831

25 46

1.144 387

0

50.611

$250.519

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TOWN OF SIMMESPORT, LOUISIANA COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2013

ASSETS

Cash and Cash Equivalents

TOTAL ASSETS

Capttal Projects

Fund

$1

1

2004 Sales Tax

Bonds

$57,909

57.909

Totals Non-M^tor

Govemmental Funds

$57,910

57.910

LIABILITIES AND FUND BALANCES Accounts payable Due to other funds

TOTAL UABILmES

FUND BALANCES Restricted fbr debt s^vice

TOTAL UABILTTIES AND FUND BALANCES $1

57.909

$57,909

57.910

$57,910

45

TOWN OF SIMMESPORT, LOUISIANA COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES -NON-MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2013

REVENUES Grant revenue Interest Income

TOTAL REVENUES

EXPENDITURES

Debt service Principal retirement Interest

Capital outiay

TOTAL EXPENDITURES

Excess (deficiency) of

revenues over expenditures

OTHER FINANCING SOURCES (USES! Operating transfers In (out)

Sales tax fund Sales tax fund

TOTAL OTHER FINANCING SOURCES (USES)

Excess (deficiency) of revenues

over expenditures and other sources (uses)



CspKal Projects

Fund

$19,713

0

19.719.

0 0

19,713.

19,713

0

0 0

0

0

1

$1

2004 Sales Tax

Bonds

$0

11

11

37.000 4.428

0

41.428

(41.416)

45,373 0

45.373.

3.957

53.952

$57,909

Total Non-Mqjor

Govemmental Funds

$19,713 11

19.7?4.

37,000 4,428

19.71?

61.141

(41.4161

45,373 0

45.373

3.957

53,953

$57.910

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TOWN OF SIMMESPORT, LOUISIANA SCHEDULE OF COMPENSATION PAID TO ELECTED OFFICIALS

A detail of compensation paid to individual eiected officials for the year ended June 30,2013, follows:

Eric Rusk Myron Brown Manual M. Kirk Kenneth L. Marsh Ted P. Turner Charies Austin, Jr. Shennan R. Bell

Title Mayor Aiderman Alderman Alderman Alderman Alderman-at-large Aldemnan

Date Term Expires Decemt)er2016 December 2016 Decemt>er2013 December 2016 December 2016 December 2016 December 2016

YearEnded June 30. 2013 $ 13,125

5,250 2.850 4,950 5,250 5,250 2,250

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OTHER REPORTS REQUIRED BY GOVERNMENTAL AUDITINQ STANDARDS

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D^ 0 ^ Aloyaia C. Dueate, CPA, PC

I ^ f JoanS.Dwxae,CPA,PC UCOte & I nmnany HopeJ,Qagnam,CPA.PC Certified PubiieAecouniantar %/

IWPgpgNDEMT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN

AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO^fERNMENT AUDmNG STANDARDS

The Honorable Eric Rusk, Mayor And the Board of Aldermen

Town of Slmmesport, Louisiana

We have audited, in accordance with the auditing standards generally accepted In the United States of America and the standards applicable to financial statement audits contained in Govemment Auditing Standards Issued by the Comptroller General of the United States, the financial statements of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund iniformation of the Town of Slmmesport Louisiana, as of and for the year ended June 30. 2013, and the related notes to the financial statements, which collectively comprise the Town of Slmmesport, Louisiana's basic financial statements and have Issued our report thereon dated November 26,2013.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we conskJered the Town of Slmmesport, Louisiana's Intemal control over financial reporting (Intemal control) to determine the audit procedures that are appropriate in the circumstances fbr the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of SImmesporfs Intemal control. Accordingly, we do not express an opinion on the effectiveness of the Town's intemal control.

Our consideration of the intemal control was for the limited purpose described in the preceding paragraph . and was not designed to Identify all deficiencies in Intemal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described In the accompanying schedule of findings and questioned costs, we identified certain deficiencies in Intemal control that we consider to be material weaknesses.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and con^ct misstatements on a timely basis. A material weakness is a deficiency, or combination of deftolencles. in intemal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying schedule of findings and responses to be material weaknesses. These are indentified as 2013-05 and 2013-06.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We did not identify any deficiencies in intemal control that we believe to be significant defteiencles.

American institute^ • Mtntf^ • Soeiefy of Louisiana Certified PubUcAcoountantB Certified Publle Accountants

219 Sorih Washington • A»f Office Box 309 • Marksville, Louisiana 71351 • (318) 253-6501 • Fbx (318) 253-0721

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Town of Slmmesport, Louisiana's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the detemninatton of financial statement amounts. However, providing an opinton on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Govemmenta/ Auditing Standards and which we described In the accompanying schedule of findings and responses as items 2013-01,2013-02,2013-03. and 20134)4.

Town of Slmmesport. Louisiana's Response to Findings

The Town of Slmmesport, Louisiana's response to the findings Identified In our audit Is described in the accompanying schedule of findings and responses. The Town of Slmmesport. Louisiana's response was not subjected to the auditing procedures applied In the audit of the financial statements and. acconjtngly. we express no opinion on it.

F>urpose of this Report

The purpose of this report is solely to describe the scope of our testing of Internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the ent l t /s intemal control or on compliance. This report is an integral part of an audit performed in accordance with Govemment Auditing Standards In conskjerlng the entity's Intemal control and compliance. Accordingly, this communication te not suitable for any other purpose.

In addition, this report is Intended fdr the information and use of the Mayor and Board of Aldermen and management of the Town of Slmmesport, Louisiana, federal awarding agencies, and for filing with the Legislative Auditor of the State of Louisiana, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and Its distribution Is not limited. Under Louisiana Revised Statute 24:513, this report Is distributed by the Legislative Auditor as a public document.

JJCOTE& COMPANY Maricsvlile, Louisiana November 26.2013

50

Anwriean Institute of • Members « Soeiefy of Louisiana Certified Public Accountants Certified Public Accountants

219 Nortii Washington • B)8t Office Box 309 * Marksville, Louiaiana 71351 • (318) 253^6501 • Fbx (318) 253-0721

TOWN OF SIMMESPORT, LOUISIANA Schedule of Findings and Responses


Sectfon / - Summary ofAurStors' Results

Financial Statements

Type of auditors' report issued: Qualified

Internal control over financial reporting: Material weakness (es) identified? Reportable conditlon(s) identified not

Considered to be material weakness(es) x ves no

Noncompliance material to financial statements noted? x yea no

Federal Awards

Not applicable for the fiscal year ended June 30 2013.

Section U-Flnanclal Statament Findings

There are two reportable conditions that are believed to be a material weakness listed as 2013-05 and 2013-06, and there are four instances of noncompliance listed as 2013-01, 2013-02, 2013-03, and 2013-04.

Section III - Federal Award Findings and Questioned Costs

Not applicable for the fiscal year ended June 30,2013.

Section IV Summary of Current Year Audit Findings and Responses

Finding 2013-01: Lack of sufficient accounting expertise to prepare financial statements

Condition Found: As noted In the prior year report as finding 12-01, the accounting personnel of the Town, while capable of handling their accounting responsibilities, lack sufficient expertise to prepare the annual financial statements with full dlscU>sures as required by Generally Accepted Accountir^ Procedures (GAAP) and Govemmentel Auditing Standards.

Cause: The job requirements do not include a degree in accounting or a sufficient level of knowledge to prepare GAAP financial statements. The salary and position do not Justify this requirement to fill that position and the Town has typically relied on the assistance of the auditor to prepare the financial statements in accordance with required standards.

Recommendation: Adequate involvement and oversight In the preparetlon of the financial statements whereby accounting personnel fully understand and take responsibility for their fair presentation is mandatory to maintain Independence with respect to the auditing firm conducting the audit.

Management's Response and Corrective Action Plan: It is not cost feasible to hire someone with sufficient knowledge and expertise to prepare the financial statements in accordance with the curent reporting standards. It is our intention, however, to continue to take responsibility for the preparation of the financial statements by verifying the information contained therein as presented. In addition, the Town will take full responsibility for any audit adjustments proposed by the auditor with full understanding of those adjustments and the disclosures contained In the financial report before its issuance.

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TOWN OF SIMMESPORT, LOUISIANA Schedule of Findings and Responses (Continued)


Finding 2013-02: Overall budget variance In General Fund and Sales Tax Fund.

Condition Found: Actual expenditures in the General Fund were within a 5% variance for the fiscal year, however, the overall unfevorable budget variance after taking into consideration the variance in revenues and transfers into the General Fund was greater than 15% of total expenditures for that fund. The General Fund had an overall unfavorable budget variance of $120.897expenses exceed budgeted expenses by $230,781 or 36%. in the Sales Tax Fund, the expenditures were 51% over budget hovvever the sales tax fund had an overall favorable budget variance of $36,943. These variances are In violation of the Louisiana Local Govemment Budget Act (R.S. 39:1301-1316).

Cause: The overall unfavorable budget variance in the General Fund was primarily due to focus on spending while not adjusting the budget for the overall decrease in revenues and operating transfers In. The Town's collected general fund revenues were $97,599 less than expected which resulted In an overall increase in the Town's General Fund deficit of $98.177.

Recommendation: Management should. In addition monitoring spending more closely monitor the revenue sources available for spending.

Management's Response and Corrective Action Plan: The recommendatton is accepted and budget variances will be monitored more frequently in the future and amendments made when applicable in order to comply with the Louisiana Local Govemment Budget Act In addition, numerous cost cutting measures have been initiated and will continue to be Implemented as disclosed In Note 18.

Finding 2013-03: Deficit fund balance in the General Fund.

Condition Found: The General Fund ended the fiscal year with a deficit fund balance of $211,047. Deficit spending Is strictly prohibited by the Louisiana Local Budget Act (R.S. 39:1305), which prohibits spending in excess of funds available.

Cause: The deficit Incurred was primarily due to improper monitoring of the annual budgeted revenues and maintaining expenditures within available revenue and operating sources and noted in finding 2013-02.

Recommendation: Management should attempt to have a better control over spending in all departments and more closely monitor and make amendments where needed to stay within resources available for spending.

Management's Response and Corrective Action Plan: The recommendation is accepted and the Mayor and Board of Aldermen have formed committees to look into ways that additional revenue can be generated in addition to continually monitoring the spending cuts that have been Initiated as disclosed in Note 18.

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Finding 2013-04: Penalties assessed on late payment of payroll tax deposits.

Condition Found: As noted in the prior year report, during the fiscal year ended June 30, 2013, the Town paid approximately $12,000 in penalties for failure to make payroll tax deposits timely. The third and fourth quarter payments of 2012 were not deposited until January 2013.

Cause: Due to the cash fiow problems that resulted from the overspending mentioned in tiie previous findings, Uie funds were not available to make timely payroll tax deposits.

Recommendation: Late payment of payroll tax deposits result in unnecessary cost to the Town as they are usually assessed penalties of up to 25% of the payment amount Management should make every effort to comply with all payroll tax deposit requirements and maintain compliance witii ttie Intemal Revenue Sen/lce at all times.

Managemenfs Response and Corrective Action Plan: All delinquent deposits from the prior year were made and payroll deposits have been made timely since the last audit report was Issued.

Finding 2013-05: Lack of controls over utility billing adjustments for the Enterprise Funds.

Condition Found: An overall reconciliation of utility billings for the fiscal year ended June 30, 2013, refiected billing adjustments totaling over $33,000 and charge-offs totaling over $21,000. As commented In ttie prior year report, ttiese adjustments continue to be excessive. The Town has Implemented a procedure requiring the Mayor to approve all billing adjustments before they are entered into ttie computer however, the approval sheets are not being maintained in an orderiy fashion and are not reconciled to the total adJusUnents In ttie computerized utility billing system.

Cause: There is no procedure in place to reconcile the adjusttnents entered into ttie computer to the approved adjustments nor Is there a procedure being performed to reconcile receivables to the computer utility billing system.

Recommendation: Management should retain all billing adjustments approved by ttie Mayor and establish a procedure to reconcile these adjustments to ttiose entered Into ttie utility billing system each month in order to avokl entering any unauthorized adjustments. Unpaid balances written off should also be tracked by montti and reconciled to the monthly reports. As recommended in the prior year report, a periodic reconciliation should be done to verify ttie balance in receivables, based on ttie amounts billed net of collections and approved billing adjustments and charge-offs. on at least a monttily basis.

Management's Response and Corrective Action Plan: The recommendatton has been accepted and will be Implemented.

53



Finding 2013-06: Debit Card Transaction Policy.

Condition Found: The Town began using a debit card for certain transactions paid ttirough the general clearing account several years ago. As commented in the prior year report there is no policy in place for the use of the card. The bank account associated with this card is a dual signature account but use of the debit card does not require prior approval or dual authorization of any kind. Cunent year transactions reflect some transactions that may not be Town related or auttiorized by the appropriate authority. In addition, several of ttie debit card transactions were also reimbursed on the Mayor's expense reports as the receipts were tumed In for reimbursement but had already been paid by the Town through the debit card. The total unauthorized or duplicate charges are approximately $200 for the fiscal year ended June 30,2013 and approximately $150 subsequent to June 30,2013, as of ttie date of ttiis report.

Cause: Debit card transactions can be initiated without prior approval and the card was issued for convenience only to purchase items over the telephone or Intemet The lack of a policy and control over the use of ttie card can result In unauthorized use.

Recommendation: The Town should adopt a debit card policy that wouM require authorization before any debit card purchases are initiated or cancel the debit card. Any unauthorized or duplicate transactions paid on the account ttiat are not Town related or double paid should be reimbursed to the Town immediately.

Management's Response and Corrective Action Plan: Effective December 2013 the debit card has been cancelled and the Town Is reviewing all debit card activity and plans to obtain reimbursement for any unauttiorized or duplicate transactions.

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TOWN OF SIMMESPORT, LOUISIANA Status of Prior Audit Findings


RefNo.

Fiscal Year Finding initially Occurred Description of Finding

Corrective Action Taken

(Yes, No, PartlalM

Planned Corrective Action/ Partial Corrective Action Taken

Section I - internal Control and Compliance Material to the Financial Statements 12-01 June 2007 l-ack of accounting expertise

12-02 June 2010 Budget variance in General Fund exceeds 5%

12-03 June 2012 Deficit fund balance In General Fund

12-04 June 2012 Deficiency in cash to fund Customer Meter Deposits

12-05 June 2012 Penalties assessed on late payment of payroll tax deposits

12-06 June 2012 Timely submission of audit report

No

No

No

Yes

Yes

Not cost feasible see 13-01

Finding still exists see 13-02


Funds were replaced In the cunent year

Penalties paid for for prior year, all payments timely beginning In 2013 see 13-04

Yes

12-07

12-08

12-09

June 2012 Lack of controls over utility billing Partial adjustments for the Enterprise Funds

June 2012 Debit Card Transaction Policy Yes

June 2012 Excessive spending on food & drink Yes


Connoted Dec 2013 see 13-06

Section 11 - Intemal Control and Compliance Material to Federal Awards

None reported in prior year.

Section ill - Management Letter

None reported In prior year.

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