Village of Angie - Louisiana · VILLAGE OF ANGiE, LOUISIANA Financial Statements As of and for the...

REPORT

VILLAGE OF ANGIE, LOUISIANA

General Purpose Financial StatementsAs of and for the Year

Ended December 31, 2005

with Supplemental Information Schedules

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

Release Date 7 "/ 2--Q&

Certified Pubtic AccountantLimned Liability Company

820 11™ AVENUEFRANKLINTON, LOUISIANA 70438

(985) 839-4413FAX (985) 839-4402

VILLAGE OF ANGiE, LOUISIANAFinancial Statements

As of and for the Year Ended December 31, 2005With Supplemental Information Schedule

CONTENTSPage No.

TRANSMITTAL LETTER 1

ACCOUNTANTS COMPILATION REPORT 2

MANAGEMENTS DISCUSSION & ANALYSIS 3-9

FINANCIAL STATEMENTS: Statement Schedule

GOVERNMENT-WIDE STATEMENTS:Statement of Net Assets A 10

Statement of Activities B 11-12

GOVERNMENTAL FUNDS STATEMENTS:Balance Sheet C 13

Statement of Revenues, Expenditures andChanges in Fund Balances D 14

PROPRIETARY FUNDS:Balance Sheet E 15

Statement of Revenues, Expenditures andChanges in Retained Earnings F 16

Statement of Cash Flow G 17

NOTES TO FINANCIAL STATEMENTS 18-28

SUPPLEMENTAL INFORMATION:Budgetary comparison schedule-General Fund/Sales Tax Fund 1 29Statement of Revenue, Expenses, and Changesin Retained Earnings-Budget/Actual 2 30Schedule of expenditures 3 31Schedule of compensation paid board members 4 32

TRANSMITTAL LETTER

ANNUAL FINANCIAL STATEMENTS

DECEMBER 31. 2005

Office of the Legislative AuditorP.O. Box94937Baton Rouge, LA 70804-9397

Dear Sir:

On accordance with Louisiana Revised Statute 24:514, enclosed are the annualfinancial statements for the Village of Angle, Louisiana as of and for the fiscal yearended December 31,2005.

The report includes all funds under the control and oversight of the Village. Theaccompanying financial statements have been prepared in accordance with generallyaccepted accounting principles.

Sincerely

Dawsey, Mayor

May 30, 2006

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Limited Liability Company

82O 11™ AVENUEFRANKLINTON, LOUISIANA 7O438

(985)830-4413FAX (985)839-4402

MEMBER MEMBERA.I.C.P.A. L.C.P.A.

Mayor and Board of AldermenVillage of Angle, Louisiana

1 have compiled the accompanying financial statements of the governmental activities,and the business activities of the Village of Angle, Louisiana, as of and for the yearended December 31, 2005, which collectively comprise the Village's basic financialstatements as listed in the table of contents in accordance with the Statements onStandards for Accounting and Review Services issued by the American Institute ofCertified Public Accountants.

A compilation is limited to presenting in the form of financial statements informationthat is the representation of management. I have not audited or reviewed theaccompanying financial statements and, accordingly, do not express an opinion or anyother form of assurance on them.

The management's discussion and analysis and budgetary comparison information, on pages2 through 9 and 29 through 31 are not a required part of the basic financial statements but aresupplementary information required by the Governmental Accounting Standards Board. I havecompiled the supplementary information from information that is the representation ofmanagement, without audit or review. Accordingly, I do not express an opinion or any otherform of assurance on the supplementary information.

v*K /\William R. DurdenCertified Public Accountant

May 30, 2006

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Management's Discussion and Analysis

VILLAGE OF ANGIE

Angle, Louisiana


Introduction

The Village of Angie is pleased to present its Annual Financial Report developed in compliance withGovernmental Accounting Standard Board Statement No. 34, Basic Financial Statements -Management's Discussion and Analysis - For State and Local Governments (hereinafter referredto as GASB 34) and related standards.

The Management's Discussion and Analysis (MDA) is designed to:

1. assist the reader in focusing on significant financial issues,

2. provide an overview of the Village's financial activities,

3. identify changes in the Village's overall financial position and results of operations andassist the user in determining whether the financial position has improved ordeteriorated as a result of the year's operations,

4. identify any significant variations from the original, amended, and final budget amounts andinclude any currently known reasons for those variations that are expected to have a significanteffect on future services or liquidity, and

5. identify individual fund issues or concerns.

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

Overview of Annual Financial Report

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

Government-Wide financial statements The government-wide financial statements aredesigned to provide readers with a broad overview of the Village's finances, in a manner similar toprivate-sector business. These financial statements are reported using the full accrual accountingmethods.

The statement of net assets presents information on all of the Village's assets and liabilities, withthe difference between the two reported as net assets. Over time, increases or decreases in netassets may serve as a useful indicator of whether the financial position of the Village is improving ordeteriorating.

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VILLAGE OF ANGIEAngle, Louisiana


The statement of activities presents information showing how the government's net assetschanged during the most recent fiscal year. All changes in net assets are reported as soon as theunderlying event giving rise to the change occurs, regardless of the timing of related cash flows.

The statement of net assets and the statement of activities display information about the Villageas a whole. These statements distinguish between those activities of the Village that aregovernmental and those that are considered business type activities.

Fund financial statements A fund is a grouping of related accounts that is used to maintaincontrol over resources that has been segregated for specific activities or objectives. The Villagesegregates transactions related to certain functions or activities in separate funds in order to aidfinancial management and to demonstrate legal compliance. The modified accrual basis ofaccounting is used by the governmental funds.

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

Financial Highlights

• Total assets, at December 31, 2005, were $575,487 (Governmental $409,007 andBusiness-Type $166,480) and exceeded liabilities by the amount of $553,523 (i.e., netassets}. Of the total net assets, $444,871 was unrestricted and available to support short-term operations, with the balance invested in capital assets net of related debt

• Revenues consist of ad valorem tax, sales taxes, refund on landfill operation, and finesand other fees, along with revenue from water sales (business-type). The total revenuesfor the fiscal year ending December 31, 2005 were $142,957 representing an approximatedecrease of 3.75% from total revenues for fiscal year December 31, 2004 of $148,520.There were decreases in charges for service of $4,121, decrease in interest of $837 andgeneral government revenue of $605.

• The Village's operating expenditures for the governmental fund, consisting of thoseexpenditures resulting from the Village's ongoing operations, increased by $18,113. Theincrease was due to increases in the following general government activities: policesalaries of $5,953, police expenditures of $1,753, insurance of $3,138 and capital outlay of$10,897. There were also decreases in street repair of $3,879 and other expenses of$1,046. In the government-wide statement of activities, the business-type activities areshown separately from the governmental activities. The business-type expenses arenetted against charges for the services resulting in an excess of expenditures overrevenue of $9,015. Total governmental expenses are $100,993, which includedepreciation expenses of $8,183. In the governmental statement of revenues,expenditures and changes in fund balance, the total expenditures are $103,708. Thedifference between government-wide and governmental fund expenses is thedepreciation.

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Financial Analysis

Statement of Net Assets

Included below is a condensed Statement of Net Assets for the Village,allows the reader to view the overall financial position of the Village,components of this statement is included immediately following the table.

Condensed Statement of Net Assets

December 31, December 31, December 31, December 31,

The condensed formatAn explanation of the

2004$ 352,030

28,337380,367

2,438

2005$ 377,955

31,052409,007

10,973

2004$ 88,765

82,986171,751

7,247

2005$ 88,880

77,600166,480

10,991

2004$ 440,795

111,323552,118

9,685

2005$ 466,835

108,652575,487

21,964

28,337349.592

31,052366.982

82.98681.518

77,60077,889

111,323431.110

108,652444,871

$ 377.929 $ 398.034 $ 164.504 $ 155.489 $ 542.433 $ 553.523

See page 10 for a more detailed Statement of Net Assets for the Village.

Government-Wide Review of Condensed Statement of Net Assets

The composition of net assets and the change in net assets over time serves as a useful indicatorof a government's financial position. Net assets from governmental activities increased $20,105 infiscal year 2005 and net assets from business-type activities decreased $9,015.

The largest category of net assets is "Unrestricted Net Assets* totaling $444,871 or 80.37% of netassets. These assets are available to meet the ongoing needs of the Village.

The second largest category of net assets is "Invested in Capital Assets Net of Related Debt",totaling $108,652 or 19.63% of net assets. This category reflects the total invested in capital assets(land, buildings, equipment, and infrastructure, etc,) net of any related debt used to acquire capitalassets. These capital assets are used to provide services to citizens and do not represent assetsavailable for future spending.

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Condensed Statement of Activities

December 31, December 31, December 31, December 31,

2004 2005 2004 2005 2004

122,840

95,020

-

95,020

27.820

347.834

2.275.00

121.098

100,993

-100,993

20,105

377,929

-

25,376

28,959

28,959

(3.279)

167,783

-

2005

$ 116,321 $ 105,265

21,255 25,376 21,255

604 5,859 5,022

964 11.415

Revenues:

General government S 116,321 $ 105,265 $

Charges for service - - 25,376

Interest 5,555 4,418

Other 964 11,415

Total revenues

Expenditures:General governmentWater utility service

Total Expenditures

Change in Net Assets:

Beginning Net Assets

Ending Net Assets $ 377.929 $ 398.034 $ 164.504 $ 155.489 $ 542.433 $ 553.523

21,859

.30,874

30,874

(9,015)

164,504

-

148,520

95,020

28,959

123.979

24,541

515,617

2,275

142,957

100,993

30,874

131.867

11,090

542,433

-

While the Statement of Net Assets shows the change in financial position of net assets, theStatement of Activities provides answers to the nature and scope of these changes. The abovetable gives an indication of how the mayor and board of aldermen operate the Village of Angle on aconservative basis.

The governmental net assets for the fiscal year 2005 increase by 5.32%, while business-type netassets decreased by 5.48%. Total government revenues decreased $1,742, which is a 1.42%decrease over 2004.

General government expenditures increased in 2005 by $5,973, which is a 6.29% increase over2004. The major area of increase was salary of $5,953.

Sales taxes are the major source of general government revenue totaling $40,516, for the year2005, representing 33.46% of total revenue. The second largest governmental revenue source isfines of $23,018, or 19.01% of total revenues.

The major expenditure within the statement of activities is for "salaries and taxes" at $36,123(35.77% of total expenditures), followed by insurance of $16,973 (16.81%).

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Analysis of Fund Financial Statements

Governmental Funds

The focus of the Village's governmental funds is to provide information on near-term inflows,outflows, and balances of spendable resources. Such information is useful in assessing theVillage's financing requirements. In particular, unreserved fund balance may serve as a usefulmeasure of the Village's net resources available for spending at the end of the year.

As of December 31, 2005, the Village's governmental funds reported a combined ending fundbalance of $366,982, an increase of $17,390 over the fund balance at December 31, 2004.Approximately 49.59% of this total ($181,995) constitutes unreserved fund balance, which isavailable for spending at the Village's discretion. The remainder of the fund balance is reserved toindicate that its expenditures are dictated by the provisions of the sales tax ordinance (streets,sewage, & water works).

Budgetary Highlight

The Village has a formal policy on adopting a budget. The Village prepares the budget on theaccrual basis of accounting. The Village adopted its 2005 budget at our regular meeting ofDecember 29, 2004. The mayor and board of aldermen review, the budget/actual financial figures,on a monthly basis. We approved the amended budget at the regular board meeting of December26,2005. Atl appropriations lapse at year-end.

Following is a comparison of the final budget to actual expenditures for the year ended December31,2005:

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Budget vs. Actual - Fiscal Year End December 31,2005

Revenues:FinesTaxesSales TaxesLandfill RebateGrant revenueInterestOther

Total RevenueExpenditures:

SalariesPayroll taxesProfessional servicesPolice expensesInsuranceOffice suppliesRepairsStreet repairsUtilities & TelephoneCapital outlayOther

Total ExpendituresExcess revenues over (under)expenditures

Fund Balance -unreserved January 1, 2005Fund Balance -unreserved December 31, 2005

Year EndedDecember 31,

2005

$ 23,00027,30040,00012,8652,1004,200

11,217120,682

34,5002,2005,3007,800

10,0001,9002,5006,5007,900

13,4008,350

100,350

20,332

349,592369,924

Year EndedDecember 31,

2005

$ 23,01826,15640,51612,8652,7104,418

11,415121,098

33,9382,1855,2408,061

16,9731,8742.8905,8837,916

10,8987,850

103,708

17,390

349,592366,982

Favorable(Unfavorable)

Variance

$ 18(1,144)

516-610218198416

5621560

(261)(6,973)

26(390)617(16)

2,502500

(3,358)

(2,942)

_

(2,942)

Capital Assets

At the end of the fiscal year December 31, 2005, the Village of Angle had $108,652 (net ofaccumulated depreciation) recorded in capital assets including land. Capital outlays are recordedas expenditures of the General Fund and as assets in the government-wide financial statement.Depreciation is recorded on general fixed assets on a government-wide basis using the straight-linemethod and the following estimated useful lives:

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VILLAGE OF ANGIE

Angle, Louisiana


BuildingsStreets & BridgesVehicles & EquipmentWater Utility:WellsReservoir, etc.Pumps & equipmentMiscellaneous equipment

40 years15-30 years5-10 years

20 years40 years10 years10 years

Fixed assets are valued at historical cost or estimated historical cost if actual cost was notavailable. Donated assets are valued at fair market value on the date donated. The costof all assets acquired prior to 1989 have been valued using estimated historical cost.

Capital asset activity for the year ended December 31, 2005

December 31,2004

December 31,2005

LandOther EquipmentBuildingsPolice Auto and

EquipmentWater Utility:

Water wellsWater distribution systemWater pump & tankWater chlorination systemOther equipmentsubtotal

Less AccumulatedDepreciationNet Capital Assets

$ 17,500774

8,740

45,256

$ 17,5001,7498,740

55,179

DollarChange

975

9,923

PercentageChange

0.00%125.97%

0.00%

21.93%

6,40028,66287,8934,3089,644

209,177

(97,854)

6,40029,95087,8934,3089,644

221,363

(112,711)

-

1,288---

12,186

(14,857)

0.00%4.49%0.00%0.00%0.00%5.83%

15.18%111,323 108,652 -2.40%

Future Economic Plans

The Village of Angle's board of alderman actively monitors revenues and expenses. Theyare constantly seeking state and /or federal grants to fund improvements to the Village.Their sources of revenue are limited and any increase in the revenue sources is highlyunlikely. Therefore the board's focus is on obtaining new grants, streamliningexpenditures, and insuring all revenue is timely collected. The board's plan is always toimprove services for the voters of the Village of Angie, without increasing the tax burden.

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FINANCIAL STATEMENTS

STATEMENT A


STATEMENT OF NET ASSETS

AS OF DECEMBER 31, 2005

Primary GovernmentGovernmental Buisness - Type

Activities Activities

ASSETS:Cash and cash equivalentsInvestmentsReceivablesDue From other fundPrepaid insurancePrepaid expenses

Total current assets

Capital assetsLandBuilding, and Equipment

Less accumulated depreciationCapital assets, net

Total Assets

LIABILITIES:Accounts payablePayroll payableSale tax payableDeferred revenuesDue to other fund

Total liabilities

NET ASSETS:Invested in capital assets, net of related debtUnrestricted

Total Net Assets

409.007 166.480

Total

$ 151,649200,0007,08614,9573,963300

377,955

$ 60,19525,0002,857828

--

88,880

$ 211,844225,0009,94315,7853,963300

466,835

17,50065,668(52,116)31,052

138,195(60,595)77,600

17,500203,863(112,711)108,652

575,487

1,0871,041

-2,9785,86710,973

39483596

9,91810,991

1,4811,124596

2,97815,78521,964

31,052 77,600 108,652366,982 77.889 444,871

$ 398,034 $ 155.489 $ 553.523

See accountant's report and accompanying notes to the financial statements-10-


STATEMENT OF ACTIVITIES

For the Year Ended December 31,2005

Government ActivitiesGeneral GovernmentPublic SafetyStreets & Bridges

Total Government Expenses

Business - Type ActivitiesWater

Total Business - Type Activities

Expenses

46,46548,6455.883

100.993

30.87430,874

Charge ForService

Net(Expenses)Revenues

21.25521,255

(46,465)(48,645)(5.883)

(100.993)

(9.619)(9.619)

General Revenues:TaxesOccupational licensesFinesSales taxesLandfill operation rebateGrant revenuesInterestOther

Total General Revenues

Change in Net Assets

Other financing sources (uses)Sale of assets

Excess revenues and other source over(under) expenditures and other source

Net Assets, Beginning of year

Net Assets, End of Year


STATEMENT B

(Net Expenses)Revenues andChange of Primary GovernmentGovernment Business-Type

Activities Activities

(46,465)(48,645)(5.883)

(100.993)

Total

(46,465)(48,645)(5.883)

(100.993)

(9,619)(9,619)

(9.619)(9,619)

18.6717,48523,01840,51612,8652,7104,41811,213120,896

19,903

604

604

(9,015)

18,6717.485

23,01840.51612,8652,7105,022

11,213121,500

10,888

202 202

20,105

377,929

(9,015)

164,504

398.034 $

11,090

542.433

155.489 $ 553,523


STATEMENT C

VILLAGE OF ANGIE, LOUISIANABALANCE SHEET

AH Governmental Fund TypesDecember 31,2005

Government Fund Types

ASSETSCash and cash equivalentsInvestmentsAccounts receivable:

TaxesDue from other fundsPrepaid insurancePrepaid expenses

Total Assets

LIABILITIES AND FUND EQUITY

Liabilities:Account payablePayroll payableDeferred revenuesInterfund Liabilities:

Due to other fundsTotal Liabilities

Fund Balance:Unreserved and Undesignated

Total Fund EquityTotal Liabilities & Fund Equity

RECONCILATION:Total Governmental Funds BalanceCapital Assets-net of depreciation

Net Assets of Governmental Activities

SpecialRevenue

Fund

$ 125,83860,000

1,7432,570

3081,0412,978

1.4825.809 5.164

TotalGovernmental

Funds

$

GeneralFund

$ 25,811140,000

5,34312,387'3.963300

$ 187.804 $ 190,151 $ 377.955

779 $

4.385

151,649200,000

7,08614.9573,963300

1,0871,0412,978

5.86710.973

366.982366.982

181,995 184,987181,995 184.987

$ 187.804 $ 190.151 $ 377,955

366,98231,052

$ 398.034

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

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STATEMENT D


ALL GOVERNMENTAL FUNDS

Statement of Revenues, Expendituresand Changes in Fund Balance

For the Year Ended December 31. 2005

RevenuesTaxesOccupational licensesFinesFranchise taxesLandfill operation rebateGrant revenueInterest earnedBuilding permitsOther

Total Revenues

ExpendituresGeneral governmentPolice departmentStreets

Total expenditures

Excess of revenues over (under) expenditures

Other financing sources (uses)Sale of AssetsTotal other financing sources (uses)

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

Fund balance-unreserved, January 1.2005

Fund balance-unreserved, December 31, 2005

RECONCILATION:Change in Fund Balance-Funds StatementCapital outlayDepreciation

Change in Net Assets

General

$ 6,0537,485

23.01812,61812,8652,7103,222

1511,19879.184

42,91250,953

-93,865

(14,681)

SpecialRevenue

$ 40,516-----

1,196--

41,712

3,960-

5,8839,843

31,869

Total

$ 46,5697,485

23,01812.61812.8652,7104,418

1511,198

120,896

46,87250,953

5,883103,708

17,188

202202

(14,479)

196,474

$ 181.995

31,869

153,118

202202

17,390

349,592

$ 184,987 $ 366.982

$ 17,39010,898(8,183)

$ 20.105


STATEMENT E

VILLAGE OF ANGIE, LOUISIANASTATEMENT OF NET ASSETS

Proprietary FundDecember 31,2005

ASSETSCash and cash equivalentsInvestmentsAccounts receivable:

UtilitiesDue from other funds

Total Current Assets

Land, buildings, and equipmentAccumulated depreciation

Total Capital Assets

Total Assets

LIABILITIES AND FUND EQUITY

Liabilities:Account payablePayroll payableSale Tax payableInterfund Liabilities:

Due to other fundsTotal Liabilities

Net AssetsContributed capitalUnreserved and Undesignated

Total Net Assets

EnterpriseFund

$ 60,19525,000

2,857828

88.880

138,195(60.595)77.600

166.480

39483

596

9.91810,991

116,41839.071

$ 155.489

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

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STATEMENT F


Statement of Revenues, Expenses and Changes inRetained Earnings - Proprietary Fund Type

For the Year Ended December 31, 2005

Operating revenuesCharges and fees

Operating expensesPurchase of servicesWagesDues & subscriptionsRepairs and maintenance suppliesSuppliesUtilitiesLease expenseDepreciationOther

Total operating expenses

Operating income (loss)

Other revenuesInterest revenues

Net income

Retained earnings-unreserved, January 1, 2005

Retained earnings-unreserved, December 31, 2005

EnterpriseFund

$ 21,255

6,0211,080

5617,0072,4015,1301,5006,674

50030,874

(9,619)

604

(9,015)

164,504

$ 155.489

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

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STATEMENT G


Statement of Cash Flows - Proprietary Fund

For Year Ended December 31,2005

Cash flows from operating activities:Cash received from customers $ 20,231Cash payments for goods and services (20,376)_

Net cash provided by operating activities $ (145)

Cash flows from capital and related financing activities:Payments for capital acquisitions (1,288),

Net cash used by non capital financing activities (1,288)

Cash flows from investing activities:Receipts of interest 604

Net increase in cash and cash equivalents (829)Cash and cash equivalents at 1/1/05 61.024Cash and cash equivalents at 12/31/05 $ 60,195

Reconciliation of operating income to netcash provided by operating activities:

Operating income $ (9,619)Adjustments to reconcile operating income to

net cash provided by operating activitiesDepreciation expense $ 6,674Decrease (increase) in accounts receivable (420)Decrease (increase) in due from other funds (524)Increase (decrease) in account payable 38Increase (decrease) in sales tax payable 340Increase (decrease) in payroll payable 83Increase (decrease) in due to other funds 3,283

Total adjustments 9,474

Net cash used by operating activities


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NOTES TO FINANCIAL STATMENTS


Notes to the Financial StatementsFor the Year Ended December 31. 2005

Introduction

The Village of Angie, Louisiana, was incorporated on March 28, 1906, under the provisions of theLawrason Act. The Village operates under a Mayor-Board of Alderman form of government. Thegoverning body of the Village of Angie is elected by the registered voters living in the village.Elected officials include the mayor, three aldermen, and a police chief. These positions arecompensated. All funds of the village shall be administered by the Mayor and Board of Aldermen.Angie is located approximately two miles south of the Mississippi state line. The Village isapproximately 51 acres in size and services a population of approximately 200. The Village employsone part-time office clerk and two part-time police officers. The Village operates a water andsanitation department that serves approximately 100 customers.

1. Summary of Significant Accounting Policies

A. Reporting Entity

As the municipal governing authority, for reporting purposes, the Village of Angie is considered aseparate financial reporting entity. The financial reporting entity consists of (a) the primarygovernment, the Village, (b) organizations for which the primary government is financiallyaccountable, and (c) other organizations for which nature and significance of their relationship withthe primary government are such that exclusion would cause the reporting entity's financialstatements to be misleading or incomplete.

Governmental Accounting Standards Board (GASB) Statement No. 14 establishes criteria fordetermining the reporting entity and component units that should be included within the reportingentity. Under provisions of this statement, the Village of Angie is considered a primary government,since ft is a special purpose government that has a separately elected governing body, is legallyseparate, and is fiscally independent of other state and local governments. As used in GASBStatement No. 14, fiscally independent means that the Village may, without the approval or consentof another governmental entity, determine or modify its own budget, levy its own taxes or set ratesor charges, and issue bonded debt. There are no other component units which the Village of Angiehas an oversight relationship

8. Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net assets and the statement ofactivities) report information on all of the governmental activities of the Village of Angie. The effectof inter-fund activity has been removed from these statements. Governmental activities, whichnormally are supported by taxes and intergovernmental revenues, are reported separately frombusiness-type activities, which rely to a significant extent on fees and charges for support,

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Notes to the Financial StatementsFor the Year Ended December 31, 2005

The statement of activities demonstrates the degree to which the direct expenses of a givenfunction or segment, are offset by program revenues. Direct expenses are those expenses that areclearly identifiable with a specific function or segment. Program revenues include 1) charges tocustomers or applicants who purchase, use or directly benefit from goods, services, or privilegesprovided by a given function or segment and 2) grants and contributions that are restricted tomeeting the operational or capital requirements of a particular function or segment. Taxes andother items not properly included among program revenues are reported instead as generalrevenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciaryfunds, even though the latter are excluded from the government-wide financial statements. Thefocus of governmental and proprietary fund financial statements is on "Major" funds. Fundsstatements present in separate columns the General Fund, followed by Major Funds, with Non-Major Funds aggregated and displayed in a separate column. The new model (GASB Statement34) sets forth minimum criteria (percentage of the assets, liabilities, revenues, orexpenditures/expenses of either fund category or the governmental and enterprise funds combined)for the determination of Major Funds. In addition to the funds that meet the major fund criteria, anyother governmental or enterprise fund that the government's officials believe is particularly importantto financial statement users may be reported as a Major Fund. All of the Village's funds weredetermined to be Major Funds and were reported in the governmental funds statement. Theproprietary fund is reported separately.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resourcesmeasurement focus and the accrual basis of accounting, as are the proprietary fund financialstatements. Revenues are recorded when earned and expenses are recorded when a liability isincurred, regardless of the timing of related cash flows. Property taxes are recognized as revenuesin the year for which they are levied. Grants and similar items are recognized as revenue as soonas all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognized assoon as they are both measurable and available. Revenues are considered to be available whenthey are collectible within the current period oi~soon enough thereafter to pay liabilities of the currentperiod. For this purpose, the government considers revenues to be available is they are collectedwithin 60 days of the end of the current fiscal period. Expenditures generally are recorded when aliability is incurred, as under accrual accounting. However, debt service expenditures, as well asexpenditures, related to compensated absences and claims and judgments, are recorded only whenpayment is due

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Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period areall considered to be susceptible to accrual and so have been recognized as revenues of the currentfiscal period. Only the portion of special assessment receivable, if any, due within the current fiscalperiod is considered to be susceptible to accrual as revenue of the current period. All other revenueitems are considered to be measurable and available only when cash is received by thegovernment.

The Village of Angie reports the following major governmental funds:

The General Fund is the Village's primary operating fund. It accounts for all financial resources,except those required to be accounted for in other funds.

The Special Revenue Fund accounts for the proceeds of sales tax revenues that is legallyrestricted to expenditures for specified purposes.

The Village of Angie reports the following major proprietary fund:

The Enterprise Fund accounts for operations (a) that are financed and operated in a mannersimilar to private business enterprise where the intent of the governing body is that costs(expenses, including depreciation) of providing goods or services to the general public on acontinuing basis be financed or recovered primarily through user fees, or (b) where thegoverning body has decided that periodic determination of revenues earned, expenses incurred,and/or net income is appropriate for capital maintenance, public policy, management control,accountability, or other purposes.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,generally are followed in both the government-wide and proprietary fund financial statements to theextent that those standards do not conflict with or contradict guidance of the GovernmentalAccounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this samelimitation. The Village has elected not to follow subsequent private-sector guidance.

As a general rule the effect of inter-fund activity has been eliminated from the government-widefinancial statements. Exceptions to this general rule, if applicable, are payments-in-lieu of taxes andother charges between the Village's enterprise operations. Elimination of these charges woulddistort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include 1) charges to customers or applicants for goods,services, or privileges provided, 2) operating grants and contributions, and 3) capital grants andcontributions, including special assessments. Internally dedicated resources are reported asgeneral revenues rather than as program revenues. Likewise, general revenues include all taxes.

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Proprietary funds distinguish operating revenues and expenses from non-operating items.Operating revenues and expenses generally result from providing services and producing anddelivering goods in connection with a proprietary fund's principal ongoing operations. The principaloperating revenues of the proprietary funds are user charges for the services provided by theenterprise funds. Operating expenses for enterprise funds include the cost of sales and services,administrative expenses, and depreciation on capital assets. All revenues and expenses notmeeting this definition are reported as non-operating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the Village's policy to userestricted resources first, then unrestricted resources as they are needed.

D. Deposits and Investments

The Village's cash and cash equivalents are considered to be cash on hand, demand deposits, andshort-term investments with original maturities of 90 days or less. State law and the Village'sinvestment policy allow the Village to invest in collateralized certificates of deposit, governmentbacked securities, commercial paper, the state sponsored investment pool, and mutual fundsconsisting solely of government backed securities.

Investments for the Village are reported at fair value.

E. Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements outstanding at theend of the fiscal year are referred to as either "due to" or "due from" other funds (i.e., the currentportion of inter-fund loans) or "advances to/from other funds" (i.e., the non-current portion of inter-fund loans). All other outstanding balances between funds are reported as "due to/from otherfunds". Any residual balances outstanding between the governmental activities and business-typeactivities are reported in the government-wide financial statements as "internal balances".

Advances between funds, as reported in the fund financial statements, are offset by a fund balancereserve account in applicable governmental funds to indicate that they are not available forappropriation and are not expendable available financial resources.

All trade and property tax receivables are shown net of an allowance for uncollectible accounts.

Property taxes are levied on January 1 and become due on December 1, of each year. Theybecome delinquent after December 31, and in June of each year the Village has a tax sale ofproperty on which taxes have not been paid. For the year ended December 31, 2005, taxes of 5.73mills were levied for general governmental purposes, on property with taxable assessed valuationstotaling $929,390. Levied taxes totaled $5,343.

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VILLAGE OF ANGiE, LOUISIANA


F. Inventories and Prepaid Items

Purchase of various operating supplies are considered expenditures at the time purchased andinventories of such supplies (if any) are not recorded as assets at the close of the fiscal year.Certain payments to vendors reflect costs applicable to future accounting periods and are recordedas prepaid items in both government-wide and fund financial statements.

G. Restricted Assets

Certain proceeds of specific revenue sources that are legally restricted to expenditures for specifiedpurposes are classified as restricted assets because their use is limited to specified expenditures.

H, Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (i.e., roads,bridges, sidewalks, and similar items,) are reported, in the applicable governmental or business-typeactivities columns in the government-wide financial statements. Capital assets are capitalized athistorical cost, or estimated cost if historical cost is not available. Donated assets are recorded ascapital assets at their estimated fair market value at the date of donation. The municipalitymaintains a threshold level of $500 or more for capitalizing capital assets.

The cost of normal maintenance and repairs that do not add to the value of the asset or materiallyextend assets lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed.Interest incurred during the construction phase of capital assets of business-type activities isincluded as part of the capitalized value of the assets constructed.

All capital assets, other than land, are depreciated n the government-wide financial statementsusing the straight-line method over the following useful lives:

EstimatedDescription LivesGeneral Government:

Buildings 40 yearsStreets 15 yearsBridges 30 yearsVehicles 5 yearsMachinery & Equipment 7-10 years

Water Utility:Water Wells 20 yearsReservior, ect 40 yearsPumps & equipment 10 yearsMiscellaneous equipment 10 years

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I. Compensated Absences

The Village only employs part-time employees and does not have a formal leave policy.

J. Sales Taxes

Proceeds of the 1% sales and use tax levied by the Village are dedicated to "constructing andimproving public roads, streets, bridges and crossings, and the extension and maintenance ofsewerage and water works and other works of permanent public improvement".

K. Long-Term Obligations

In the government-wide financial statements, long-term debt and other long-term obligations arereported as liabilities in the applicable governmental activities statement of net assets. Bondpremiums and discounts, as well as issuance costs, are deferred and amortized over the life of thebonds using the effective interest method. Bonds payable are reported net of the applicable bondpremium or discount. Bond issuance costs are reported as deferred charges and amortized overthe term of the related debt.

In the fund financial statements, governmental fund types recognize bond premiums and discounts,as well as bond issuance costs, during the current period. The face amount of the debt issued isreported as other financing sources. Premiums received on debt issuance are reported as otherfinancing sources while discounts on debt issuances are reported as other financing uses. Issuancecosts, whether or not withheld from the actual debt proceeds received, are reported as debt serviceexpenditures.

L. Fund Equity

In the fund financial statements, governmental funds report reservations of fund balance foramounts that are not available for appropriation or are legally restricted by outside parties for use fora specific purpose. Designations of fund balance represent tentative management plans that aresubject to change.

M. Extraordinary and Special Items

Extraordinary items are transactions or events that are both unusual in nature and infrequent inoccurrence. Special items are transactions or events within the control of the Village, which areeither unusual in nature or infrequent in occurrence.

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VILLAGE OF ANGIEf LOUISIANA


N. Estimates

The preparation of financial statements in conformance with accounting principles generallyaccepted in the United States of America requires management to make estimates andassumptions that affect the reported amount of assets and liabilities and disclosure of contingentassets and liabilities at the date of the financial statements and the reported amounts of revenues,and expenses during the reported period. Actual resurts could differ from those estimates,

O. Reconciliations of Government-Wide and Fund Financial Statements

Explanation of certain differences between the governmental fund balance sheet and thegovernment-wide statement of net assets is presented in Statement C of the basic financialstatements. Explanation of certain differences between the governmental fund Statement ofRevenues, Expenditures, and Changes in Fund Balances and the government-wide Statement ofActivities is presented in Statement D of the basic financial statements.

2. Stewardship, Compliance, and Accountability

The Village of Angie uses the following budget practices.

a) The proposed budget for December 31, 2005, was made available for public inspection, onDecember 6,2004, upon presentation to the board of aldermen. The proposed budget, preparedon modified accrual basis of accounting, was adopted at the Village's December 27, 2004special meeting.

b) All expenditure appropriations lapse at year end.

c) Unexpended appropriations and any excess of revenues over expenditures are carried forwardto the subsequent year as beginning fund balances.

d) The budget was amended at the Village's special meeting December 26, 2005.

3. Cash and Cash Equivalents

The following is a summary of cash and cash equivalents (book balances) at December 31, 2005:

Interest bearing demand deposits $ - 0 -Non-interest bearing demand deposits 211.844Total cash and cash equivalents

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

At December 31, 2005, the Village had the following deposits (collected bank balances, and CDinvestments):

Non-interest demand deposits $ 214,097Certificates of deposits 225.000

Totals $ 439,097

These deposits are secured from risk by $200,000 of federal deposit insurance and $400,000 ofpledged securities held by the custodial bank in the name of the fiscal agent bank.

Even though the pledged securities are considered uncoltateralized (Category 3) under theprovisions of GASB Statement No. 3, R.S. 39:1229 imposes a statutory requirement on thecustodial bank to advertise and sell the pledged securities within 10 days of being notified by theVillage that the fiscal agent has failed to pay deposited funds upon demand.

4. Investments

Investments are categorized into these three categories of credit risk:

1. Insured or registered, or securities held by the municipality or its agent in the Village's name

2. Uninsured and unregistered, with securities held by the counterparty's trust department or agentin the Village's name

3. Uninsured and unregistered, with securities held by the counterparty, or by its trust departmentor agent but not in the Village's name.

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VILLAGE OF ANG1E, LOUISIANA


All investments held by the Village fall into category 1 credit risk, defined as "insured or registered,or securities held by the Village or its agent in the Village's name". In accordance with GASB 31,Accounting and Financial Reporting for Certain Investments and for External Investment Pools, allinvestments are carried at fair market value, with the estimated fair market value based on quotedmarket prices.

At December 31, 2005, the Village's investment balances were as follows:

Category 1 Cost and Carrying Value

Time deposits $225,000.

5. Receivables

Receivables consist of all revenues earned at year-end and not yet received. Allowances foruncollectible accounts are based on historical trends and the period aging and write-off of accountsreceivable. Major receivables balances for the governmental activities include sales taxes and advalorem taxes. Business-type activities report utilities earnings unpaid at December 31, 2005.

Interest and investment earnings are recorded only if paid within 60 days since they would beconsidered both measurable and available.

The following is a summary of receivables at December 31,2005:

Class of Receivable General Fund Sales Tax Fund Enterprise FundAd valorem taxes $ 5,343Sales taxes $ 1,743Utility Accounts $ 2.857

Total Receivables $ 5,343 $ 1.743 $ 2.857

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6. Inter-fund Receivables and Payables

The following is a detailed list of inter-fund balances reported in the fund financial statements:

TotalsGeneralFund

Interfund Receivables

Interfund Payables

$ 15,785

$ 15,785

Sales TaxFund

12.387 $ 2.570ffSS S Si SS SSS SSSSS SS

1.482 4.385

EnterpriseFund

828^BBB=

9.918

7. Capital Assets

The following is a summary of changes in capital assets for governmental activities for the yearended December 31, 2005:

Governmental Activities

BalanceJanuary 1,

2005Capital Assets Not Depreciated:

LandTotal Capital Assets Not

Being DepreciatedOther Capital Assets:

Other EquipmentBuildingsPolice auto and equipmentTotal Other Capital Assets

Less Accumulated Depreciation:Other EquipmentBuildingsPolice auto and equipment

Total Accumulated DepreciationOther Capital Assets, NetGovernmental Activities Capital

Assets, Net

Additions Deductions

BalanceDecember 31,

2005

$ 17,500 $ $ 17,500

17,500

7748,740

45,25654,770

(619)(7,648)

(35,665)(43,933)10.837

-

975-

9,92310,898

(349)(219)

(7,615)(8.183)2,715

17,500

1,7498.740

55,17965,668

(968)(7.867)

(43,280)(52,116)13,552

$ 28,337 $ 2.715 $ $ 31,052

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The following is a summary of changes in capital assets for business activities for the year endedDecember 31,2005:

Capital Assets:Water WeltWater Distribution SystemWater Pump & TankChlorination SystemOther EquipmentTotal Other Capital Assets

Less Accumulated Depreciation:Water WellWater Distribution SystemWater Pump & TankChlorination SystemOther Equipment

Total Accumulated DepreciationCapital Assets, Net

BalanceJanuary 1,

2005

6.40028,66287,8934,3089,644

136,907

(6,400)(23,320)(14,634)(4,299)(5,267)

(53,920)82,987

Additions Deductions

1,288

1,288

(1,498)(4,208)

(9)(960)

(5.177)(3,889)

BalanceDecember 31,

2005

6,40029,95087,8934,3089,644

138,195

(6,400)(24,818)(18,842)(4,308)(6,227)

(60,595)77,600

8. Litigation and Claims

As of December 31, 2005, the Village was not involved in any outstanding litigations or claims.

10. Related Party Transactions

There were no related party transactions requiring disclosure in the financial statements.

11. Subsequent Events

There were no subsequent events requiring disclosure in the financial statements.

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SUPPLEMENTAL INFORMATION

Schedule 1

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SCHEDULE 2


Statement of Revenues, Expenses and Changes inRetained Earnings - Budget and Actual - Proprietary Fund

For Year Ended December 31,2005

Operating revenuesCharges and fees

Operating expensesPurchase of servicesSalariesPayroll tax exoenseDuesRepairs and maintenance suppliesSuppliesUtilitiesLeases expenseDepreciationOther

Total operating expenses

Operating income (loss)

Non operating revenue (expenses)Interest earned

Total non operating revenues (expenses)

Income (loss) before operating transfersOperating transfers in (out)

Net Income

Retained earnings-unreserved, January 1, 2004

Retained earnings-unreserved, December 31, 2004

OriginalBudget

$ 26,000

9,6001,200

100500

3,5002,0003,5001,5002,800

50025,200

800

-

800

800

164,504

$ 165,304

AmendedBudget

$ 21,000

5,7001,200

6006,0002,4005,1001,5002,800

50025,800

(4,800)

100100

(4,700)

(4,700)

164,504

$ 159,804

Actual

$ 21,255

6,0211,080

5617,0072,4015,1301,5006,674

50030,874

(9,619)

604604

(9,015)

(9,015)

164,504

$ 155,489

Variance

$ 255

(321)120

39(1,007)

(D(30)-

(3,874)-

(5,074)

(4,819)

504504

(4,315)

(4,315)

_

$ (4.315)


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Schedule 3VILLAGE OF ANGIE, LOUISIANA

ALL GOVERNMENTAL FUND TYPES

SCHEDULE OF EXPENDITURES

For the Year Ended December 31, 2005Sale

General TaxFund Fund Total

Salaries-administration $ 9,010 9,010Salaries- police 24,928 24,928Payroll tax 2,185 2,185Professional service 5,240 5,240Police expenses 8,061 8,061Travel 1,395 1,395Insurance 16,973 16,973Office supplies 1,874 1,874Repairs 2,890 2,890Street repairs 5,883 5,883Utilities & telephone 3.956 3,960 7,916Gas & oil 2,402 2,402Other 4,053 4,053Capital outlays 10.898 10.898

Total Expenditures $ 93,865 $ 9.843 $ 103.708

See accountant's compilation31

Schedule 4


Schedule of Compensation Paid Board MembersFor the Year Ended December 31, 2005

The schedule of compensation paid to board members is presented in compliance with HouseConcurrent Resolution No. 54 of the 1979 Session of the Louisiana Legislature.

The Board of Aldermen of the Village consists of three members elected by the registered voters ofthe Village. The following is a schedule of the compensation of the mayor and aldermen.Compensation did not exceed provisions of R.S. 33:4305.B[1].

BOARD MEMBER POSITION COMPENSATIONJohn Dawsey Mayor $ 2,310.00

Gilbert Ball Alderman 1,450.00

GaryFomea Alderman 1,400.00

Roxie Fornea Alderman 1,450.00

Total $ 6.610.00


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