Village of Grayson - app.lla.state.la.us OF GRAYSON Grayson, Louisiana Table of Contents As of and...

VILLAGE OF GRAYSON Grayson, Louisiana

1

Report on Audit of

Basic Financial Statements For The Year Ended December 31, 2014

Under provisions of state lavw. this report is a public document. Acopv of the report has been submitted to the entity and other appropriate public o' 'c-als^ • oe report is available for public inspection at the Baton Rouge office of the Legislative Auditor and . whc.e appropriate, at the office of the parish cierk o, court.

^ , AUG 1 9 2015 Release Date —

Jimmie Self, CPA A Professional Accounting Corporation

2908 Cameron Street, Suite C Monroe, Louisiana 71201

Phone 318/323-4656 • FAX 318/388-0724

_ -1: • i.


Table of Contents As of and for the Year Ended December 31,2014

Exhibit Page

Independent Auditor's Report 1-3

Required Supplementary Information (Part I)

Management Discussion and Analysis 5-10

Basic Financial Statements Government-Wide Statements:

Statement of Net Position A 12

Statement of Activities B 13

Fiind Financial Statements Governmental Funds:

Balance Sheet - Governmental Funds C 15

Reconciliation of ̂ e Balance Sheetlo the Statement of Net Position ̂ Governmental Funds C-1 16

I

Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds D 17

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund B^ances of Governmental Funds to the Statement of Activities D-1 18 ,

Proprietary Fimds: 1

Statement of Net Assets - Proprietary Funds E 19

Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds F 20

Statement of Cash Flows - Proprietary Funds G 21

GRAYHContents i


Table of Contents As of and for the Year Ended Ilecember 31,2014

Schedule Page

Notes

Notes to the Financial Statements 23^39

Required Supplementary Information (Part ID Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Budget (GAAP Basis) to Actual 1 41

Other Supplementary Information

Schedule of Compensation Paid Elected Officios 43

Other Reporting Required by Government Auditing Standards

IndependCTt Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on; an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 45-46

Schedule .of Findings and Responses i

Summary Schedule of Findings

47-48

49

Schedule pf Compensation, Benefits, and other Payments to Agency Head or Other Chief Executive Officer ' 50

GRAYUComents

Jimmie Self, CPA A Professional Accounting Corporation

2908 Cameron Street, Suite C Monroe, Louisiana 71201

Phone 318-323-4656 Fax 318-388-0724

Independent Auditor's Report

To the Honorable Mayor and the Board of Directors Village of Grayson Grayson, Louisiana

Report on the Financial Statements

I have audited the accompanying financial statements of the governmental activities j the business-type activitiesvand each major fund of the Village of Grayson, Louisiana, as of and for the year ended December 31,2014, and the related notes to the financial statements, which collectively comprise the Village of Grayson's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the prep^ation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relev^t to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to.fraud or error;

Auditor's Responsibility

My responsibility is to express opinions on these frnancial statements, based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to frnancial audits contained in Government Auditing Standards by the Comptroller General of the United States. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the frnancial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the frnancial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the frnancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal 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

GRAYMTndAudRcp

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used ^d the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence 1 have obtained is sufficient and appropriate to provide a basis for my audit opinions.

Opinions

In my opinion, the financial statements referred to above present fairly, in.all material rejects, the respective financial position of the governmental activitieSj the business-type activities, and each major fund and the aggre^te remaining fund infonnation of the Village of Grayson, as of Deceniber Jl, 2014, and the respective changes in financial position and, where applicable cash flows, thereof for the year then ended in accordance Avith accounting principles generally accepted in the United States of America.

Other matters

Required Supplementary Information

Accounting principles gener^ly accepted,in the United Staf^ of America require that the management' discussion and analysis and budgetary comparison inforinatidn on pages 5-10 and 41 be presented to supplement the basic fihariciai statements. Such information, although not a part of the basic financial statements, is required by the Goyemmental Accounting Standta*ds Board, who considers it to be ah essential part of financial reportihg for placing the basic financial statements in an appropriate operatibiial, economic, or historicd context, I have applied certain limited procedures to the required supplemehtafy information in accordance with auditing standai^ generally accepted in the United States of America, which conristed of inquiries of ihanagement about the methods of preparing the information and comparing the information' for consistency with management's responses to my inquiries, the basic financial statements, and other knowledge I obtained during my audit of the basic financial statements. I do not express an opinion or provide any assurance on the information because the limited procedures do, not provide me with sufficient evidence to expressman ppiiilon or provide any assurance.

Other liifprmation

My audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Grayson's basic financial statements as a whole. The introductory section is presented for purposes of additional analysis and is not a required part of the financial statements:. The accompanying supplemental information is listed in the table of contents under Supplementary Information presented for the purpose of additional analysis and is not a required part of the basic financiy statements. Such

GRAYMIndAudRep

information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, therefore, I express no opinion on them.

Other Reporting Required by Government Auditing Stan(&ds

In-^ordance with Government Auditing Standards, I have also issued my r^rt dated June 29,2015, on my consideration of the Vill^e of Grayson's internal conUol over financial reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is to describe the scope of my te^g of internal control over financial reporting and compliance ^d the results of that testing, ^d not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integr^ part of an audit performed in accordance with Governmental Auditing Standards in considering Village of Grayson's internal control oyer financial reporting and cbihpliance.

Jimrnie Self, CPA Monroe, Louisiana June 29,2015

GRAYUIndAudRep

Required Supplementary Information (Part I)

Management's Discussion and Analysis

j

VILLAGE OF GRAYSON GRAYSON, LOUISIANA

Management Discussion and Analysis December 31,2014



As management of the Village of Grayson we offer readers the Management's Discussion and Analysis (MD&A), a narrative overview and examination of the financial activities for the year then endei The MD&A is designed to provide an objective and easy to read evaluation of the Village's financial activities based oh currently known facts, decisions, and conditions. It is also intended to provide readers with a broad overview of the Village's finances and an analysis of short-term and long-term activities of the Village based on informatipn presented in the financial report and fiâl policies that have been adopted. Specifically, this section .is designed to assist the reader in focusing on significant financial issues, provide an overview of the financial activity, identify changes in the Village's financiai position (its ability to address the;next and subsequent year chaheriges), identify any material deviations fiôra the financial.pl^ (the. approved budget), and identify fiind issues or concerns.

As with other sections of the financial report, the information contained within the MD&A should be considered only a part of the greater whole. The readers of this statement should take time tp.read and evaluate all sections of this report, including the footnotes (Notes to the Financial Statements), reports, and the other Financid Statements Schedules (Required Supplementary Information) that are provided in addition to this Management.Discussion ^d Analysis.

Overview of Financial Statements This diûssioii and an^ysts is intended to serve as an.introduction.to the Village's financial statements. The basic financial statements consist of the following components:

1. Goyemment-Wide .Financial Statements 2. Fund Financial Stêments 3. Notes to the Financial Statements 4. Other Supplementary Ihfoiimation, which is in addition to the basic financial

statements themselves.

1. Government-Wide Financial Statements

Government-Wide Financial Statements are designed by GASB Statement No. 34 to change the way in which government financial statements are presented. It now provides readers for the first time a concise "entity-wide" Statement ofNet Assets and Statement of Activities, seeking to give the user of the financial statements a broad overview of the Village's financial position and results of operations in a mainner similar to a private-sector business.

MD&AI4



A. The Statement of Net Assets prQS^his information on all the Village-s assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. The diiference between the assets and liabilities is reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Village is improving or weakening.

B. The Statement of Activities presQjiis information showing how gdvemment's net assets chmged during the most recent fiscal y^. All changes in net assets are reported as soon ̂ the underlying event giving rise to the change occurs,,regardless of the timing of related cash flows, thus, revenues and expenses are reported iri this statement for some items that will only result in cash flow in future fiscal periods.

The government-wide financial statements fiirther assist die reader in their evaluation by distinguishing flmctions of the Village into:

A, Governmental activities that are principally supported by taxes and intergovernmental revenues, and

B. Business-type activities ihsd are intended to recover all or a significant portion of their costs through user fees and charges.

Finaiicial An^ysis of the Town as a Whole

As year to. year fihahcid iriforihaition is accumulated on a consistent basis, changes in net assets may be observed and used to discuss the changing financial position of the Town as a whole. Below is a brief description of the total assets, total liabilities, and net assets shbvring.festricted and uruestricted portions, the program revenues, and,the related expenditures:and expenses.

mLAGE GFGRAVS ^ i^rmnafV of Statements 6f^NetP6sition_ December 31,2014

Govemmental Activities Business-type. Acti\^ties Totals 2013 I' 2014 2013 2014 M 2013 1 2014

Cunent and Other Assets 100,534 ; 123.763 167,384 134,368 : j 267;918:1 258.131 Capital Assets j " ' 923^468 ' / 854,564 i,492,315 1,403,41^ , ; 2.415;783 :' 2:257,986. Total Assets : 1,024,002:; 978,327 " 1,659,699 : 1.537,784 , ,1 2,683,701 : 2,516,111

Long-term Liabities

« I •

-370.b6T'i~ 370,00'l ' 323,990

Other Liabilities ; 6,477 5,102 , 113,094 'lig'ig^Vr ' " 119.571 * . Y25,636 Total Liablitties 6.477 : 5,102 483,095 443;924 ': 489,572 449,026

NetAssets: . -• 1

--Invested in Capital Assete net of related debt 923.468 854i564 1,100,120 . 1.b39>56" 2,023,588 1,893,914

Restricted - 54.363 ^ ' 61,672 " ' 54,363 ' 61,672 Unrestricted 94,057 " 118,661 22,121 (7.162) : 116,178.. • 111,499 Total Net Position 1,017,525 973,225 1,176,604 1,093,860 : 2,194,129 2,067,085

MD&A14



VILLAGE OF GRAYSON

Summary of the Statement of Activities

For the Year Ended December 31.2014 2.014 2014 2013 2013

• Business- Business-Governmental Type Governmental Type

Activities Activities ' Total Activities Activities Total Charges for Services 16,898 442,411 459,309, 24,846 446,879 471.725 Operating Grants & Contributions 46,812 - 46,612 30,809 - 30,809 Capitaf Grants - - - - -

Property Taxes 9,419 - 9,419 8,968 9.419 Franchise License Fees 9,984 - 9,984 9,122 - 9,122 Occupational Licenses 28.637 - 28.637 32,153 - 28,637 Fines 48,727 - 48,727 55,467 55,4^ Fire Asse^ment 40,240 - 40,240 33,939 40,240 Investment Income 1,005 775 1,780 685 494 1,179 Other Miscellaneous Income 246 - 246 16,598 - 16:598 Transfers-intemal act'rviti^ 44,667 - - - -

Total Revenues 246,435 443,186 889,621 212,587 447;373 .659,960

EXPENSES: General Adrriinistration 241,310 226,910 254,132 254,132 Public Woite 14:537 - 22,307 18,025 -- 18,025 Public Safety 34,6M - 10.959 12,941 - 12,941 Water - 362,215 326:272 - 374.151 374,151 OwWUl - 142,785 . 108,699 - 115,123 115,123 Interest Expense - 20:930 25,820 - 19,683 19,683.

Total Expenses 290,735 525,930 720,967 265,098 508,957 ,794,055

Change in Net Position (44.300) (82.744) (127.044) (72.507) (61.^) (134,091) Net Position. Beginning. 1.017;525 1,176,604, 2.194.129 1,090:032 1,238,188 2.328.220 Net Position, Ending 973,225 1,093,860 2,067,065. 1.017,525 1,176.604 2.194,129:

2. Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village, like any other state or local governments, uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. All of die funds of the Village can be divided into two categories; governmental funds and proprietary funds.

A. Governmental funds are used to accotint for most of the Village's basic services as reported as governmental activities in the government-wide financial statements. However, unlike the government-wide fmancial statements, governmental flmd finaricial statements focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. Those funds are reported using modified accrual

MD&A14



accounting that measures cash and all other financial assets that can readily be converted to cash. The governmental fmd statements provide a detailed short-term view of the Village's general govemmentd operations and basic services it provides. Governmental flmd information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the Village's programs.

Because the focus of gbvenimental fiinds is nairower than that of the,govemment-wide financial statements, it is useful to compare the information piesehted for government funds with similar ihfprm^ion presented for govemniental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the govemmental fiind Balance Sheet and the governmental fimd Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this cotnparison between govemmental funds arid,govemmental activities. These reconciliations are located on pages 16 and 18.

The Village maintains one indiyidud govemmental fund. Iriforraatiqn is presented separately in the govemmental fimd Balance Sheet and in the government fund Statement of Reveiiues, Expenditures, and Changes in Fund Balances for the General Fund. The basic govenimeiital fund financial statements can be found on pages 15 and 17 of this report

3. Notes to the Financial Statements

The Notes to the Financial Statements provide additional information that is essential for a full understanding of the data provided in the govemment-wide and financial statements. The notes to the financial Elements can be found immediately following the section entitled "Basic Financial Statements."

4. Other Supplementary Iirformatipn

•In addition to the basic'fihancial statements and accompanying notes, this report also presents certain required si^plementafy information. Required supplementary information can be found beginning with a section entitled "Required Supplementary Information - Part II."

A. Budgetary Comparison Schedule - The Village adopts an annual appropriated budget for its general fimd. A budgetary comparison schedule (Schedule 1 in the Required Supplementary^ Information Part II section) has been provided for these funds to demonstrate compliance with the adopted budget and state laws.

The Village has prepared its General Fund Budget for the Year 2014 on the assumption that revenues and expenditures will remain fairly constant next year. Revenues and

MD&A14



expenditures for the Utility Enterprise Fund should also remain constant during the next year.

B. Analysis of Significant Budget Vanances in the General Fund.

Budget Variances - General Fund | 2014 2013

Revenues -7958 unfavorable $400 favorable

Expenditures 6,691 favorable $5,261 favorable

5. Combining Statements for the non-major Governmental,Funds - N/A

6. Other Supplement^ Schedules are included in this report.

Capital Assets and Debt Administration

.1. Capital Ass^

The Village's investment in capital assets for current year of December 31, 2014, netof accumulated depreciation in its government^ activities is $854,564 aiid in business-type activities is $1,403,416 which totals $2,516,111 for the Village. For the prior ye^ ended December 31,2013, the Village's investment in,capital assets, net of accumulated depreciation, in its goverainehtal activities is:$923,468 and in busihe^^pe activities is $1,492,315 which totals $2,415,783 for the Village. The investment in governmental ^tivities assets includes I^d, buildings and systems, niachineiy and equipment, parks and.landscaping. The investment in assets for business-type activities includes the water and sewer system and freatinentplants. Additions to governmental activities assets within the year, 2013, in the amount of $93,405 included a fire truck.as well as other items. Additions to biisiness-type actiyities^assets (water and sewer system) for the ye^ 2014 in the amount of $7,585 include water line and well rej)airs.

2. Long-Term Debt At the end of the current fiscal year ended December 31,2013 , the Village had a revenue bond indebtedness of,$274,779, a note payable of 95,222 (both long-term) and current portion of bond and net.indebtedness of 16,350 +accrued interest of $5,844.

At the end of the prior fiscal year'erided December 31,2014, the Village had a revenue bond indebtedness of $274,200. This indebtedness was undertaken by the Village as Sewer Revenue Bonds in August of 1991 and is scheduled to be paid in full in the year of 2029. The Village also had a Loan balance of $80,970, due to The Community Bank of Louisiana.

MD&A14


I Management Discussion and Analysis t December 31,2014 I jf This financial report is designed to provide a general overview of the Village's finances t for all those with an interest in the government's finances. Questions concerning any of

the information provided in this report or requests for additional financial information should be addressed to Ellen Scribner, Town Clerk, Village of Grayson, 5228 Hwy 126 E, Grayson, LA 71435.

MD&AM 10

VILUVGE OF GRAYSON, LOUISIANA STATEMENT OF NET POSITION December 31,2014

EXHIBIT A

GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES TOTAL

Assets: Cash and Cash Equivalents $ 24,099 $ 27;251 $ 51,350 Investments 92,432 - 92,432 R^ivables, Net 7,232 45,445 52.677 Restricted Gash - 61,672 61,672 Capital Msets. Net (See NOTE 3) 854,564 1,403,416 2,257,980 Total Assets: 978,327 1,537,784 2.516,111

Liabilities: Current Liabilities 5,102 17.709 22,811

Customer Deposits - 62,-149 62,149 Accrued Liabilities - 8;896 8,896 Current portion of long-term obligations - .31,180 31,180 total Current Liabilities 5,102 119; 934 125,036

Nph-Gurrerit Liabilities

Bonds Payable - 262.060 262,060 ^ Notes Payable - 61,930. 61,930

Total Lpng-Terin Ljabllities - 323.990 323,990 Total Liabilities 5,102 443,924 449.026

Net POSITION: Invested in Capital Assets, Net of Related Debt 854,564 1,039.350 1,893,914 Restricted - 61:672 61,672 Urifestficted 118;661 (7.162) 111,499

Total Net Position $ .973,225 $ 1,093,860 $ 2,067.085

THE AeeOMPANYING NOTES ARE AN INTEGRAL PART OF THIS REPORT

GRAY 14 StmlNetPosition 12

VILLAGE OF GRAYSON, LOUISIANA Statement of Activities For the Year ended December 31,2014

EXHIBIT 8

Program Revenues Total

Functions/Programs Expenses

Charges for Services

Operating Grants and

Contributions Governmental

Activities Business-type

Activities Net Expenses

/Revenue

Governmental Activities General Government Public Safety Public Works Total Gdvemmentai

$(241,310) (34.888) (14,537)

$ 16,898 $ 46,612 $ (177,800) (34,888) (14,537)

$ $ (177;800) '(34.888) (14,537)

Activities (290,735) 16.898 46.612 (227.225) - (227,225)

Water Sewer Interest Expense

Total Business-Type

(362.215) (142,785) (20,930)

335,409 107,002 -

-

Isi

(26,806) (35,783) (20,930)

Activities (525,930) 442.411 - - (83,519) (83,519)

Total Activities $(816.665) $ 459,309 $ 46.612 $ (227,225) $ (83,519) $ (310:744)

Taxes: Property Taxes $ 9,419 $ $ 9.419

Occupational Licenses 28,637 - 28:637 Franchise fee 9,984 - 9.984 Fines 48,727 - 48,727 Fire Assessment 40,240 - 40:240 O^er Miscellaneous Iricome 243 - 243 Investment Income 1,008 775 1,783 transfers 44.667 - 44,667 Total Generai:Revenues 182,925 775 183.700

Change in Net Position (44,300) (82:744) (127.044) Net Position, Begirihing 1,017,525 1,176:604 2,194,129 Net Position, Ending $ 973,225 $ 1:093;860 $ 2,067.085

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS REPORT

GRAYUStmtActivities 13

VILLAGE OF GRAYSON. LOUISIANA

BALANCE SHEET

Governmental Funds

December 31.2014

EXHIBIT 0

THE AGCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS REPORT

GRAYU BalShtGovFunds 15

2.014 Total

Governmental Funds

Assets: Cash

Inves^ents , Rece|vables-(net, where applicable, of

allowance for doubtful accounts) Total Assets:

24.099 92,432

7,232 123,763

Liabilities and Fund Balance: Liabilities

Accounts and Other Payables

Total Liabilities 5.102

5,102

Fund Balances: Unassigned

Total Fund Balance Total Liabilities and Fund Balance

118,661

118.661 $ 123,763

VILLAGE OF GRAYSON, LOUISIANA EXHIBIT C-1 Reconciliation of the Balance Sheet

to the Statement of Net Position Governmental Funds

December 31,2014

Fund Balances - Total Governmental Funds $ 118,661

Amounts reported for govemmental activities In the statement of net assets are different because:

Capltel assets used In Govemmental Activities are not current financial resources, therefore, are not reported In the govemmental funds Balance Sheet

Capital Assets 1,557,816 Less: Accumulated Depreciation (703,252)

854,564 854,564

Net Position of Govemmental Activities' $ 973,225

THE ACCOMPANVING NOTES ARE AN INTEGRAL PART OF THIS REPORT

GRAYMRcconBalShtToSimtNclAsstGovFnds 16

VILLAGE OF GRAYSON, LOUISIANA Statement of Revenues, Expenditures,

and Changes |n Fund Balances Governmental Funds

For the Year Ended December 31,2014

EXHIBIT D

Revenues: Property T^es Occupatiohal Licenses FranchlseFee Fines Fire Assessment Other Miscellaneous Charges for Services Grant Income Investment,Earnings

Transfers Total Revenues

Expenditures: General Govemment Public Safety Public Works Total Expenditures

Excess (Deficiency) of Revenues over Expenditures

Governmental Funds

$ 9.419 28,637 9,984

48,727 40,240

321 i6;898 46i612 1,008

44,667 246.513

184,588 24,760 12,561

221,909 24,604

Fund Balance - Beginning of Year Fuiid Balance - End of Y^r

94,057 $ 118:661

THE ACCOMPANYING NOTES ARE AN.INTEGRAL PART OF THIS REPORT

GRAY14StmtRevExpChngFndBalGovFnds 17

VILLAGE OF GRAYSON. LOUISIANA Reconciliation of the Statement of Revenues,

Expenditures, and Changes In Fund Balances of Governmental Funds to the Statement of Activities


EXHIBIT D-1

Net Change In Fund Balances - Total Governmental Funds $ (44;300)

Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estirnated useful liveis as depfeciatiori exf^nse.

Total Capital Outlays Current Depreciation

(13,536) ^.439 68,903

68,903

Net Position of Governmental Activities $ 24,604

THE ACCOMPANYING,NOTES ARE AN INTEGRAL PART OF THIS REPORT

GRAY14ReconStmtRevExpChngFndBalGovFndsToStmtActiv 18

VILLAGE OF GRAYSON, LOUISIANA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31,2014

EXHIBITE

Business-type Activities

Water Fund

S^er Fund Totals

ASSETS Current Assets: Cash and Cash Equivalents Accounts Recetvabte, Net

$ 24.709 37,7^

$ 2,542 $ 7:677

.27.251 45,445

Total Current Assets 62.477 10,219 72,696

Non-Current Assets: Restricted Assets: Cash and Cash Equivalents - 61,672 61.672

Capital Assets: Land, Buildings, and Equipment Accumulated Depreciation Total Capita! Assets

r

1,233,408 (505,854) 727,554

1,755.790 (1,079.928)

675.862

2,989,198 (1,585,782) 1,403.416

I Total Assets 790,031 747,753 1,537.784

LIABILITIES Current Liabilities

Accounts and^Otherf'ayableS; Customer Deposits Accrued Note/Bond and Interest Bonds Payable, current

12,251 62.149

3.299 19,039

5,458

5.597 12.141

17,709 62,149 8;896

31,180 Total Current Liabilities 96,738 23,196' 119;934

Npn-Current'Liabilities Bonds Payable 262,060 262,060 Notes Payable 61,930 - 61,930

Total Long-Term Liabilities 61.930 262,060 323,990 Total Liabilities- 158i668 285,256 443;924

Net Position Invested In Capital Assets^ Net of Related Debt Restricted Unrestricted

643,286

(11.923)

396.064 61,672 4,761

1,039,350 61,672 (7.162)

Total Net Position $ 631.363 $ 462,497 $ 1,093,860

THE ACCOMPANYING NOTES ARE AN1NTEGRAL PART OF THIS REPORT

GRAY14StmtNetPosilk)nPTOpFrKls 19

VILLAGE OF GRAYSON. LOUISIANA STATEMENT OF REVENUES, EXPENSES, AND

CHANGES IN FUND NET POSITION PROPRIETARY FUNDS

FOR THE YEAR ENDED DECEMBER 31; 2014

EXHIBIT F

BUSINESS-TYPE ACTIVITIES

Water Sewer Fund Fund Totals

OPERATING REVENUES: Charges for Services $ 335.409 $ 107.002 $ 442.411

Total Operatinfl Revenues; 335.409 107.002 442.411

Auto Expense 133 133 CeirPhone 844 - 844 Depreciation 39,620 56.865 96:485 Dues and Subscriptions 155 - 155 Equipment .980 . 980 Fire-Assessment 21,132 - 21.13i2 Fees 325 - 325 Fuel 8,566 8.566 Insurance 12,512 14,820 27.332 Lalindrv and Cjeanino 1.045 _ 1.045 Licen^ 50 . 50 Maintenance 14.538 14.538 Meter Refund 2:541 - 2.541 Reoaii^ 500 - 500 Materials SSuoolies 13:203 16.780 29.983 Miscellaneous 2;991 27 10.018 Office Expense 4,469 140 4,609 Oxic^tiori Pond Materials and Supplies _ 2;661 2.061 Other Materials andSupplies 4.564 1.533 6,097 Pavroll Taxes 6,715 .. 6;715 Posteqe & Supplies 1,858 _ 1.858 Professional Fees 5.413 2.851 8:264 Retirement Expense 5.932 5,932 Salaries Expense 87.779 12.105 99,884 SDWExpense 1.^36 - 1,436 Sewer Revenije Funds 76,925 _ 76,925 Transfers 18^000 31,000 49,000 Travel 523 _ 523 Telephone Expense - 150 150 Utilities 29.466 4:453 33.919

Total Operating Expenses Operating income (loss) Nonoperating revenues (expenses)

Interest Income Interest Expense

Total Nonrpperating Revenues and Expenses Charige in net Posjlion

Total net position beqinnlna Total net position ending

362,215 142.785 1 505.000 Total Operating Expenses Operating income (loss) Nonoperating revenues (expenses)




(26,806)

254 (6.613)

f35.783)t

521 (14.317)

(62.589)

775 (20.930)





(6.359) . (13:796) (20.155)





(33.165) (49:579) (82.744)





664.528 512.076 1.176.604




Total net position beqinnlna Total net position ending $ 631,363 $ 462.497 $ 1,093,860

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMEN1

GElAY14StintNePositionPropFnds 20

VILLAGE OF GRAYSON. LOUISIANA Statement of Cash Flows Proprietary Funds

For the Year Ended Decemt>er 31,2014

EXHIBIT G

Business-Type Activities

Water Fund Sewer Fund Total

Cash Flows from Operating Activities: Receipts from Customers $ 321,966 $ 106,713 $ 428,679 Payments to Suppliers (242,971) (94,608) (337.579) Payments to Employees (87.779) (12,105) (99;8W).

Net Cash Provided by Operating Activities (8.784) 20,707 11,923

Cash Flows from Noncapital FIriahcing Activities Intere^Paid (6,613) (14.317) (20,930)

Net Cash provided (u^) by nonr^prtal financing activities (6.613) (14.317) (20,930)

Cash Flows from Capital and Related Financing Activities: Aoiuisition and Coristruction of Capital Assets-net (4.300) (3,285) (7.^) Princpai paid on Revenue Bonds (19,039) (12.141) (31,180)

Net Cash ,Provided (used) by Capital and Related Financing Activiti^: (23,339) (15.426) (38.765)

Cash Flows ̂ m Investing Activities Interest on investments 234 519 753

Net Cash Provided (us^) by Investing activities 234 519 753;

Net Increase (Decrease) in Cash s (38,482) (8.517) (46,9^) Cash and Cash Equivalents - Bieginning 63.,19i; 72,734 i36i925 Cash and Cash Equivalents, - Ending * $ 24.709 $ 64,214; $ 88,923

Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Incprhe (Loss) •$ (33,165) $ (49.579) $ (82.744)

Adjustments to Reconcile Operating lncome(Lpss) to Net Cash Provided by Operating Activities: Depreciation. 39,620 58,6.38 98,258 lncrease:(Decrease) in Accounts Receivable 13.697 (583) 13,114 Increase (Decrease in Accounts Payable (28i936) 12,231 (16;70i5).

Net Cash Provided by Operating operations $ (8.784) $ 20,707 $ 11,923

• NOTE: The Statement of Cash Flows consists of both: Water Fund Sewer Fund Total

Cash $ 24.709 $ 2.542 $ 27,251 Restricted Cash-from Sewer Fund - 61,672 61.672

TOTAL 24.709 $ 64,214 $ 88.923

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS REPORT

GRAY14 StmtCashFlows 21


NOTES TO THE FINANCIAL STATEMENTS As of and for the Year Ended December 31,,2014

INTRODUCTION The Village of Grayson, Grayson, La., was incorporated under the provision of the Lawrason Act (Louisiana Revised Statutes [LSA - R.S. 33.321 - 463] and operates under a Mayor-Board of Aldermen/Women form consisting of 4 compensated members of government. It provides the following services to its residents: public safely (police); highways and streets; gas, water, sewer, and sanitation facilities through the utility hind; culture/recreation; and general administrative services.

NOTE I. SUMMARY OF SIGNIFICAOT ACCOUNTING POLICIES

Tbeaccounting and reporting policies of the municipality conform to generally accepted accounting principles as applicable to governments. 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 Governmental Units.

A. BASIS OF PRESENTATION I

TTieiaccompahying financial statements of the Village of Grayson, Grayson, La., have been prepared in " conformity with generally accepted accounting principles (GAAP) as applied to government^ units. The Govemniental Accounting Standards Bp^d (GASB) is the accepted standard setting bbdy for establishing governmental accounting and financial reporting principles.

B. REPORTING ENTITY

As themiinicipal governing authority, fori*^rtihg purposes, the Village of Grayson, Louisiana is coiisidered a separate fm^cial reporting entity. The financial reporting entity consists of (a) the primary .government, (municipality), (b) ofgaiiizations for which the prirnary government is financially accountable,; and (c) other organizations for which nature and sign ificance of their relationship with the piimaiy government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete:

Governmental Accounting Standards Boardi(GASB) Statement No. 14 established criteria for determining which component units should be considered part of the Village of Grayson,.Louislana for the financial reporting purposes. The basjc criterion for ihcluding a potential component unit within the reporting entity is financial accountability. The GASB has set forth criteria to be considered in determining financial accountability. This criteria includes:

1. Appointing a voting majority of an organization's goyeming body, and t

A. The abilit>' of the municipality to impose its will on that organization and /or

B. The potential for the organization to provide specific financial benefits to or impose specific fin^cial burdens on the municipality.

2. Organizations for which the municipality does not appoint a voting majority but are fiscally dependent on the municipality.

GRAY14 Notes 23


NOTES TO THE FINANCIAL STATEMENTS As of and for the Year Ended December 31,2014

3. Organizations for which the reporting entity financial statements would bemisleading if data of the.ofganization is not included because of the nature or significance.of the: relationship.

No component units are included in this report, since there are none. All portions of the Village- s financial activities which might be otherwise considered as coniponent units are managed as a portion of the centralized'governmental and proprietary activities and are Included in this report;

C. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

Governmeni-wide Financial Statements

The government-wide financial statements include the Stateinent of Net Assets and the Staterhent of Activities, êse statements report financial information for the Village as a vvhole excluding fiduciary activities such as employee pension plans. The prima^ government is presented separately within the financial statements v/ith the focus on the primaiy goveihment. Individual funds are hot diÎayed but the statements distinguish governmental activities, generally supported by taxes and Village general revenues^ from business-type activities, generally financed in whole or irlfpart with fees charged to external customers. Thei Statement Of Activities reports the expenses of a given function offset by program revenues directly connected with Ae functional program. A fimction is an assembly of similar activities and may include portions of a fund or summarize more than one fund to capture the expenses and program revenues associated with a distinct functional activity. Program revenues include: (I) charges for services which report fees, fines and forfeitures, and other charges to users of the Village's services; (2) operating grants and contributioi^ which finance annual operating activities including restricted investment income; and (3) capital gr^ts and contributions which fund the acquisition, construction^ or rehabilitation of capital assets and include fees-to developers. These revenues are subject to externally imposed restrictions to these program uses. Tês Md other revenue sources not properly included with prograrn revenues are reported as general revenues.

Fimd Financial Statements

The Village of Grayson uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legalcompiiance and to aid financial ihahagement by segregating transactions relating to certain government functions or activities.

A fiind is a separate accounting entity with a self-balancing set of accounts.

Funds of the Village of Grayson are classified into two categories, governmental and proprietary, ^ch category,, in turn, is divided into separate fund types. The fund classifications and a description of each existing fund type follow:

Fund financial statements are provided for governmental, proprietary, and fiduciary funds. Major individual governmental and enterprise funds are reported in separate columns with composite columns for non-major funds.

D. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION

GRAY14 Noles 24


NOTES TO THE FINANCIAL STATEMENTS As of and for the Year End^ December 31,2014

Definitions

Measurement focus is a term used to describe"which" transactions are recorded within the v^ous financial statements. Basis of accounting refers to 'Svhen" transactions are recorded regardless of the measurement focus applied.

Measurement Focus Utilized

On the Government-wide Statement of Net Assets and the Statement of Activities, both governmental and Business-like activities are presented using the economic resources measurement focus as detinedm item "b."belowr

In the fund financial statements, the "curient financial,resources" measurement focus or the "economic resources" is used as appropriate.

a. Theigovemmental fimd utilizes a "current financial resources" measurement focus. Only current financial assets and liabilities are generally included on the balance sheet. The operating statement, presents sources and uses of available spendatilevfi^^ resources during a given p^iod. This fund uses fund balance as its measure of available spendable financial resources at the end of the period.

b. The government-wide financial statement utilizes an "economic resources" measuiement focus. The accounting objectives ofthis measurement focus are the determination of operating income, changes in net assets (or cost of recoveo') and financial position. All assets andiliabilitiies (whether current or non-current) associated with,its activities are reported. Government-wide fund equity is classified as net assets.

Financial Statements

The fmancial statements of the Village are prepared in accordance with generally accepted accounting principles (GAAP). The Village's reporting entity applies all relevant Governmental Accounting Standards Board (GASB) pronouncements and applicable Financial Accounting Standards Board,(EASB) pronouncements and Accounting Principles BOard (APB) opinions issued on or before Novemter 30, 1989, unless they conflict with GASB pronouncements. The Village's reporting entity does not apply FASB pronouncements or APB opinions issued after November 30, 1989.

The government-wide statements report using the economic resources measurement focus and the accrual basis of accounting generally include the recl^sification or elimination.of internal activity (between or within funds). However, internal eliminations do not include utility services provided to Village's departments. Reimbursements are reported as reductions to expenses. Proprietary and fiduciary fund statements al^ report using this same focus and basis of accounting although internal activity is not eliminated in these statements. Revenues are recorded when earned and expenses are recorded when liability is incurred, regardless of the timing of related cash flows. Property tax revenues are recognized in the year for which they are levied while grants are recognized when grantor eligibili^ requirements are met.

GRAY 14 Notes 25


NOTES TO THE FINANCIAL STATEMENTS As;of and for the Year Ended December 31,2014

Governmental fund finMcialiStateraCTts repprtsuse the current financial reso_ufces measurement focus and the mckiified accrual basis of accounting. Revenues are recognized whenthey are both measurable and available. Available means collectible >îthin the current period of soon enouîthereaftef to pay curreht liabilities. The Villageconsiders revenues to be available if they are collected within 60 days of the endpf the fiscal year. Expenditures are.recdrded when the reliated fund liability is incurred, except for general obligation bond principal and interest which are reported ^ expenfitures in the year due.

Pension tmst funds r^pgnjze employer and participant contributionsJn the period in which contributions are due and the Village hastmade a formal commitment to provide the coiitributioiis. Retirement benefits

refunds are recognized when due and payable in accordance with the terms of the plan.

Major revenue sources suêptible to accrual include property taxes, ^chise taxes (fees), intergovernmental reyenueis,.and investment income. In general, ptiier^revenueSjare recognized when;cash is received.

t

Operating income reported in propriety fund financial statements incjudes fevehues and expenses related to the primî Contmuihg operations of the fund Principal operating reyehues fpr propriety fimds;^^ charges tOLCustpmers for sales or servicesi Principal operating expen^âre the cpste of providing gopds or services and inblude^^mini^^^^^^^ deprîation of capital Qdier revenues and expenses are classifiedTas non^perating in the financial statements.

When both restricted and unrestricted resources are avail^le for it is the Village's policy to use restricted resources firsti then unrestricted resources asmeeded.

total Columns on Con^lin^d Statements

Total columns oh the conibined,stated iare caption^ to indicate that they are presented only to facilitate fihahcial analysis. Data in,these cojiirahs do not present fihahcial position, result of opm changes in fin^cial position in cphfprmify with generally accepted accoimting principles. Neither is such data comparable to a^cpnsplidation. Ihterrfund elirninationyhave not been made in the aêgation of this date.

I

E MAJOR FUNDS

Gdvernm^tat Funds

funds:

General Fund— reports as theprimary fund of the Village. This fimd is used to account for ail fin^cial resources not reported in other funds.

Fire Fund - accounts for operating activities of the fire department

Propriâry Funds

The Village reports theTollowing enterprise funds;

GRAYH Notes 26

VILLAGE OF GRAYSON Graysony Lduisiaiia


Water Fund-accounts for the operating activities of the Village's water utilities services. This is a major fund.

Sewerage Fund - accounts for the operating activities of the Village's sewer utility services. This is a major fond,

F. ASSETS, LIABBLITIES, AND NET ASSETS OR EQUITY

Gash and Investments

The Village maintains and controls cash and investments, some of which are restricted. Legal restrictions and the Village's policies governing deposits and investments are discussed in Note 3.

The Village's reporting entity considers highly liquid investments (included restricted assets) with an original maturity of three months or less when purchased to be cash equivalents.

Investments are reported at fair value that is determined using selected bases. Short-term investments are reported at cost that approximates feif value. Securities tfaded on a national or international exchange are valued at the last reported sales price at current exch^ge rates. Managed fonds related to the retirement systems not listed on an establish^ market are reported at estimated fair value as determined the respective fund managers based on quoted sales prices of the underlying securities. Ca^ deposits are reported at carrying amount that reasonably estimates fair value.

Capital Assets

Capital Outlays are recorded as expenditures of the General, Sjpecial Revenue and Capital Projects Funds and as assets in the government^wide financial statements to the extent the Village's c^italization threshold is.met. Depreciation is recorded on capital assets on a.govenuhent-wide basis. The Village did hot retroactively report infrastructure when GASB 34 was adopted.

Capital outlays for the governmental funds are recorded as capital assets and depreciated over then-projected useful lives on a straight-line basis, All donated capital assets are valued at their estimated fair market value on the date donated. All other caphafassets arerecorded at cost. Projected useful lives are demonstrated in the table below.

! PROJECTED USEFUL LIVES OF CAPITAL

ASSETS Governmental Funds

Land Non-Depreciable Buildings 40 Years Furniture and Fixtures and Equipment 5 - 1.0 Years Canines 5-10 Years

Capital-outlays for Proprietary Funds are recorded as capital assets and depreciated over their projected useful lives on a straight-line basis and government-wide basis. All donated capital assets are valued at their

GRAY14 Noles 27

!*'



estimated fair market value on the date donated. All other capital assets are recorded.at cost; The following table shov/s the project^ useful lives of certain items utiliz^ by the water and sewer utilities. These estimates demonstrate the period of time over which the item is depreciated. Followihg.is a schedule of projecteduseful lives.

PROJECTED USEFUL LIVES OF CAPITAL ASSETS

Enterprise Fund Water Utility Projected Useful Life

Wells 20 years Storage tanks 40 years Purification plant 33 years Lines and meters 40 years

Sewerage Utility Projected Useful Life P^piStaLtipns 40 years Lines 40 years Autos and trucks 5 years Other equipment 10 years

Maintenance, repairs, and minor equipment are ch^ged to operations when incurred. Expenditures that materially change opacities or extend useful lives are capitalized- Upon sale or ietirement.of land, buildihgSj.ahd .^uipment, the cost and, related accumulated depreciation, if applicable, are eliminated from the respective accounts and any resulting gain or loss is included in the results of operations.

Obligations - Long-Term

In the government-wide financial statements, long-term debt is reported as liabilities in the applicable governmental activities statement of net assets;

In the fund financial statements, governmental fund.types recognize debt issued reported as other financing sources. Repayment of the principal and interest is shown as an expenditure.

Estimates

The preparation of financial, statements in conformity with accounting principles generally accepted in the United States of America, require management to make estimates and assumptions that affectlhe retried amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue, expenditures, and expenses during the reporting period. Actual results may differ from those estimates:

Equity Classifications

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

a. Invested in capital assets, net of related debt, consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balance of any bonds,

GRAY14 Noies 28



mortgages, notes, or other borrowings that are attributable to the acquisition, construction or improvement of those assets.

b. Restricted net assets consist of net assets with constraints placed on their use either by (I) extemafgroups such as creditors, grantors, contributor, or laws or regulations of governments; or (2) law through constitutional provision or enabling legislation;

c. Unrestricted net assets consist of all other net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt."

G. REVEIVtJES, EXPENDITUiEUES, AND EXPENSES

Proprietary Funds

Operating revenues,and expenses for proprietary funds aire'those that result from providing services and producing and delivering goods and/or services. It also includes all revenue and expenses not related to capital.and related npn-capitalfrnancing or investing activities

Ad Valorem Taxes

Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied by the Village in September or October and are actually billed on October I, and are mailed to the taxpayers in November. Billed taxes become delinquent on January 1 of the fpllovying year. Revenues frepi ad valorem taxes are budgeted and the year billed. The revenue derived,from this tax is not-dedicated to any specific purpose

The Village bills and collects its own property taxes using the assessed value determined by the tax assessor of Franklin Parish, Property tax revenues are recognized when they become available. Available includes those property tax receivables elected to be collected withih sixty days after year-end. Delinquent taxes are considered fully collectible and therefore an allowance for uncollectible toes is not provided.

Expenditures/Expenses

In the govemment-wide financial statements, expenses are classified by function for both governmental and business-type activities.

In the fund financial statements, expenditures are classified as follows:

Governmental Funds - By Character Proprietary Funds - By Operating and Non-operating

In the fiind financial statements, governmental funds report expenditures of financial resources. Proprietary funds report expenses relating to use of economic resources.

Compensated Absences

Village employees are entitled to ten days of compensated absences. However, compensated absences do not vest or accumulate and are recorded ^ expenditures when they are paid.

GRAYM Notes 29



NOTE 2 BUDGETARY INFORMATION

Budget Policy and Pradice

The Village Clerk submits an annual budget to the Village council in accordance with applicable statutes policies. The budget is presented to the Council for review, and public hearings are held to address

priorities and the allocation of resources; In December, the Village Council adopts the annual fiscal year budgets for Village operating funds. Once approved, the Village Council may amend the le^lly adopted budget when unexpected modifications are required in estimated revenues and appropriations.

BasK of Budgeting

The Village of Grayson (Mayor and Council) uses the following budget practices:

(1) Prior to Dumber 31 of each year, the town Clerk submits to the Mayor and Council Members a proposed operating.budget for the fiscal year commencing the following January 1. The.operating budget includes proposed expenditures and the means of financing them for the upcoming year. The budget is submitted in summary form, In addition, more detailed line item budgets are included for administrative control. The level of control for the detailed budgets is at the department head/function level.

(2) Public hearings ^ conductedto obtain taxpayer comment:

(3) During the month of JMU^ the budgetis legally enacted through passage of an prdin^ce.

(4) Formal budgetary integration is employed as a m^agement control deyice during the year for the General Fuhd.

(5) Budgets for the General Fund, are adopted on the GAAP b^is.

(6) Appropriations lapse at the end of each fiscal.year.

(7) The Mayor and Council Members authorize supplemental appropriations during the year. Supplemental appropriations were made during the fiscal year.

Interfiirid Transactions

During the course of normal operations, the Village has numerous transactions between funds including expenditures and transfers of resourcesprimarily to provide services. The governmental funds fmariciai statements generally reflect such trmisactions as transfers.

Legally authorized transfers are treated as interfund transfers and are included in the results of operations of both governmental and proprietary funds. The transfers are made to the applicable fund when that fund's cash flow is too low to meet obligations.

Encumbrance Accounting

GRAV14 Notes 30


NOTES TO THE FINANGIAL STATEMENTS As of and for the Year Ended December 31,2014

Encumbrance accounting.is not utilized by the Village.

NOTE 3 ASSETS

Cash and Cash Equivalents

Cash includes amounts in demand deposits, interest-bearing demand deposits, and money, market accounts. Cash equivalents include amounts in time deposits and those investments with originaj maturities of 90 days or less:, Under state law, the Villê of Grayson may deposit funds in dem^d deposits, interest-bearing demand deposits, money market accounts, or time deposits with.state banks dr^nized .under Louisiana law ^d nation^ banks having their principal offices in Louisiana.

At December 31,2014, the Village,had cash totaJing $205,454 (book balances) as follows:

General Fund Enterprise Fund Total Deniand Deposits - Book Balances $ 24,099 27,251 51,350 Investrnents 92,432 92,432

Restricted Cash _ 61,672 61,672 Total .Cash $ 116,531 $ 88,923: 205,454

Under state law; the Village of Grayson may invest in United States bonds, treasury notes, or certiiflcates. These are classified ^ investments if their original maturities exceed 90 days. However,df the original maturitiesFare 90 days or less, they are classified as cash equivalents. Investments ê sta^ at cost Cash ^d investments (B^k Balances) are secured^ folloAvs: i

Caldwell Bank Citizen's Bank Homeland Bank Bank Balances 250 | $ 131,565 $ 73,640 FederdDeposit.Insunmce 250,000 , 250.000 250.000 Pledged Securities (Market Value) 0 ! 40,452 ^ CollateralSuificient 249,750 $ 122J247 $ 176,360

! The Village's bank accounts are now sufficiently collateralized, according to the Villê's policy of furnishing collateral assurance. The Village has an agreement with their local bank to assure they have sufficient coverage.

I

Even though the pledged securities are considered uncollateralized (Category 3)'under the provisions of GASB Statement 3, Louisiana Revised Statute 39:1229 imposes a statutory requirement on the custodial bank to advertise and sell the pledged securities within 10 days of being notified that the fiscal agent bank has failed to pay deposited funds upon demand.

Investments consist of Certificates of Deposit in the governmental activities, with a renewal period of 12 months.

GRAY14 Notes 31


NOTES TO THE FINANCIAL STATEMENTS As of and for the Year Ended Dêmber 31,2014

Receivables The receivabies of $52,677 at December 31, 2014 are as follows:

General Fund $ 7,232 Enterprise Fund 45^445 TOTAL RECEIVABLES $ 52,677

No allowance for doubtful accounts has been established.

Restricted Assets

Certain proprietary fund assets are restricted for construction funded through long-term dehu Net assets restricted for debt sendee include the excess of assets over certain liabilities reacted for the debt service on revenue bonds. Restricted assets are also reported in various funds for c^h deposited in bank accounts legally resfected for specified uses such as the payment of debt service and fiscal fees on long-term debt or mortgage loans, and ,certificates of deposit (CD) issued in the Village or trust nê and deposited with the Village treûrer in lieu of project retainages. Proceeds of restricted CD's oh deposit wititiihe Village Treasurer are payable as liabilities payable from restricted assets.

(THIS PORTION OF THIS PAGE IS DTTENTIONALLY LEFT BLANK)

GRAY14 Noles 32

VILLAGE OF GRAYSON Grayson, lûisiana

NOTES TO THE FINANCIAL STATOMENTS As of and for the Year End^ December 31,2014

Beginn^ | ; Aûmulated ^ I Current Current Balance 11 Deprîati'on Depreciatipn Depreciation

fJotelAcci^; ' j Oepreciation:' Balance

Larid - Non Depreciable " 13,600 ,y.

13,600 - • . - ! ' 13,600

Buildings " 1 147,000 1 . 7,695 ' • 139,305 3,769" i'[ 11,464 135,536

Street 155,367 ' '35,812 ! • 119,555 13j^'Z_ 49!6^ i • 106,^1 ̂

. Equipment 152,355 ! f36.'37^'t 15,986 i5!6767*" T

Vehicles ! 55,^ ; 39T59 H' "" ' 15i9'l7 7, '49^960 n " "sTsoe" Furniture/Fixtures i 7-,500 ! • 3,691 ; I 3,809 1,312,: 5;po3 r i'497

531,088 i ' 222,926 1 i 308,172 44,952 1 267,878 * ! 263,210 .

, Equipment

j i

50.676 20,180 ;! 30,496

t *

r t

" 23^7; 27,195 '

Road Repairs-Asphalt ftecap 4^95'! 6,818 i : 41,477 . 2^957 jj_ 9,775 ;: 38,520j

Bldgs-W^r Tower 97.166 . '707607 V" 29,159 3,339 ; : 73,3« 7 i318 ,

Total Addns 2014 6.823 1 i -1; 6,823 682 f 1 ,682 11 6.141 i

Total Capital Assets-General Fund 734.048 i \ 319:391 1 1 414.H5 ! 55,231 I 375,161 358:885 i Total Capital Assets-General Fund 1 ' j-j...

5 •

! \ j 1 ' j-j...

5 •

1'

1

> %

;U„ J

jcAPiTAL A^CTS RRE FUND » : ^

'7

' 1

-: — —— _9^51^ 1

^

' Building^ ,..53Z|82L!i_ 1^7666 •; 351,491

' 1

-: — —— _9^51^ 1 195,^ i; 360.742'!

Epuipment 184.445, [.i 87,410 i "97,035 , " 7,827 . j" " 95.237 li ' "87,7847 ;SUBpfAL ^ n : 722,272 i j 273:746 ; 1 448.526 . 17.078 J 290.824 i ' 431,448 '

JAdditibhs 2012": : ^•38I]T"

•i ; 1 Bîuipment : ^•38I]T" "^677^ 1.165' 276 ; 1 .552 r 829

'RRETbTAL2012^ 723,653 1 , 274,022 : ! 449,631 : 17,354 : ! 291,376 ! 432,277 :

ADDNS 20J3: : ;93;405 |j. •î860 J|_ 66.545 : •9.341tii... ,^,201 i 57.204 i

^TOTAL Wyj i 817;059 i r 300;882 1 I 516,176 : : 26,861 J 1 327,743- [. 489:480

; 6,713 i • , r f - „.! ,

6,713 i 348 i: '514 j: 6,199 f

823,771 300,882 ' 1 522,889 ' 27,209 j r 328,091 ; ' 495,679 ;

' ^\557,e^7 1 , 620i813: i i 937,005 82,439 j 1 703,252 1; 854,564 ; ; 1 1 ' 1 ! 1 1 '

J • , . •

Depreciation adocaâs: r < • a« * , i i

r' ; • FUND ' : FTCFUND = i TOTAL .

J

ADM J ' 56^M9 1 15,618 1 ^ 72^507 . ' 1

RJBLicSAF^ • " "5.903'I 1,215 1 : 7^1 a ' • 1 •'( > [

1

PUBLIC WORKS ' 2.29^ 1 '"^"521 2,814 " ^ 1 ••

Total Depr alUocated 65,085 i 17,354 : 82,439 ' ' : :

I 1 ' 1 ;

*• Land is not depreciated

( ' . I ..

- h"" : •

. i'

GRAYHNotcs 33



VILLAGE OF GRAYSON 12-31^2014 CAPITAL ASSETS BUSINESS-TYPE ACnVITTES (PROPRIEATRY FUND) WATER SYSTEM AND SEWER SYSTEM

Buildings and Eauinmeht Beg Bal Addiis

Total: Accum New Cuir Accum

Depr Ba! Depr Depr JSet

Water System 1,229,191 4,300 466,234 767,174 39,620 505,854 727,554

Sewer System 1.752.505 3.285 L023.063 732.727 56.865 1.079.928 675.862

TOTAL 2.981.613 7.585 1.489.297 1.499.901 96:485 1.585.782 1.403.416

TOTAL CAPITAL ASSETS. NET

Goveniniental Capital ̂ ets. Net 854,564 Business-Type Capital A^ts, Net 1.403A16

Total (exhibit A) 2^57;980

NOTE 4 DEBT

Changes in Long-Term Debt

1. Thefoliowing is a summary of the Village's long^crm debt at December 31, 2014, composed of the following:

Less Cuirent Portion TOTAL LONG-TERM DEBT

2013

212,700 Sewer Revenue bond (Bond R-1) dated August 4, 1989; due in annual installments of $12,500; due August 4, 1991-2029; Inteiest at 5% 135,284

237,500 Sewer Revenue Bond (Bond R-2) dated August 4, 1989; due in annual installments of $13,958; due August 4, 1991-2029; Interest at,5% 151,058

286i342

286.342

Paid

5,736

6,405

12.141 12,141

2014

129,547

14^653

274,200 12,141

0 262.059

GRAYUNotes 34

V


NOTES TO THE FINANGIAL STATEMENTS As of and for the Yc^r End^ December 31,2014

The annua] requirements to amortize all long-term:debt outstanding which began December 31,1996, are as follows: VILLAGE OF GRAYSON LONG TERM DEBT AMORTIZATION

Beginning Ending Balance Principal Interest Balance

297,905 12/31/13 297,905 11,564 13; 159 286.342 12/31/14 286,342 14,945 11,513 271.397 12/31/15 271.397 16,581 9,877 254^816 12/31/16 254,816 18,227 8.231 236,589 12/31/17 236,589 19,873 13,068 216,716

12/31/18-12/31/23 216,716 107,745 132,885 108,971' 12-31/24-12/31/29 108.971 108,971 66,442 -

Under the terms of the bond indenture on outst^ding sewer reveriue bonds, dated August 4, 1989, all income and revenues (hereiti^er referred to .as income) ofeveiy nature, earned or derived from oi^rations of the sewer system are pledged and dedicated to'tiie retirements of said bonds, and are to be set aside in the following frmds;

a. Each month there will be set aside into a ,fund called the "Sinking,Fund" ah amount constituting 1/12 of the next inaturmg iristallrtient . of principal and interest on the outstanding bonds. Such transfers shall be fully sufficient .tp assure prompt payment of principle and interest installments as they becorhe due, and may be used only for such payments.

The following is a,schedule of deposits that should be made to the sinking fund; PERIOD MONTHLY INSTALLMENTS

2204.86 08/20/08 - 07/20/09

b. There shall be set aside in a Reserve Fund an amount equal to 5% of the principle wd interest payments required during the mpiith'UntiLthere.shall have been accumulated in the reserve accoimt ah amount equal to $38,202.

The following is a schedule of payments that should be made to the Reserve Fund: PERIOD MONTHLY DEPOSITS

08/20/08 through 07/20/09 $176.23 per month must be depjosited into the fund until 342,294 has been accumulated.

c. Monthly deposits of $112 should also be made for the period through July 20,2029 to the Contingency Fund.

0RAYI4 Noies 35



2. Und^ the terms of a Loan, which be^ as ah Escrow Account, to the Community Bank of Louisiana, the total outstanding balance @ 12-31-2014 (interest rate of 4% annually), of 80,170, is as follows: The loan matures in 2018.

3. Begining Principal Interest Balance

100,009 2014 19,039 3,997 80,170 2015 20,296 3,257 59,874 2016 21,553 2,488 38,321 2017 22,824 1,688 15,497 2018 15,497 857

Skort-Tehn Debt

ShortTtemi liabilities are paid as they acchie ^d beconie payable. They are paid on a monthly basis as approved by the mayor and councillor payment.

NOTES. PRt)PERTY TAX REVENUES

For the ye^ ended December^ 1, 2014, taxes of $9,189:70 (5.73 mills) were levied on property with a^essed valiiatioris totaling $1,603,788 and were deducted as follows:

General cpiporate purposes 5.73 mills

NOTE 6. RESTRICTIONS ON USE OF UTILITIES RlEVENIJES

Funds -provided by utilities revenue is to be used in tihie following manner before they are available for other lawdul purposes:

1. Operating expense of utility system; 2. Revenue bond service funds. 3. Revenue bonds reserve funds. 4. Revenue bond depreciation and contingencies fund.

NOTE 7. PENSION PLAN Subst^tially all employees of the Village of Grayson are members of the statewide retirement systems. Municipal Employees Retirement System of Louisiana, Municipal Police Employees Retirement System of Louisiana, or Firefighters* Retirement System of Louisiana. These systems are cost-sharing, multiple-

GRAYI4 Notes 36


NOTES TO THE FINANCIAL STATEMENTS ^ of for the Year Ended December 31,2014

employer defined braefit admiriiêred.hy-separate boards of trustees. PertihOTt mfonn^ relative to each plan follows:

A. Municipal Employees Retirement System of Louisiana

Pl(m Description. The system is composed pf twp.distinctiplans, Pto A and Pto Bj wth sep^te assets and benefitprovisions. All employees of.the municipality are members of Plan, A. Some einplpyeespf the municipality are members of Plm A and PlanB. All permanent employees wprking at fleairt S 5 hours per w^k who me not covered hy another pension plan md me paid wtiPlly or in part from municipd fiinds and all elected municipal officials are eligible toparticipate in the System, pjnder Plan A^.employees who retire at prp^r agepO vdth.at least 10;years of creditable^ service at or after age 55 with at least SO years of credit^le service are entitled to a retirement benefit, payable; monthly for life; equal to 3'percent Of their final-average ^laty;: Fiêrmore, emplPyees.with at least 10 years of creditable service, but less than 30 years, may take, retirement; beneigts com^ after age 60, with Ihe basic benefit reduced percent lpr each yeariretireimentprecedes age 62, unless he has at lea^ 30 yearn of creditable service;. In any ca^, monthly rrtifemenf benefitspaid linder Plan B cannpt.exceed l OO percent of final-ayerêisalaryJ Fiimlraverage sal^ ik the employee's average isaliary over the 36 consecutive orjoihed'months that pnûce the highest average. Employees who tennmate with at least the ampuntpf service ^ted above, andy do not withdraw their einployee contributions, may retire at the ages specified aboye and receive the accrued to their dke of te^ The SystemsaJsp provides death and disability benefits..Benefits are established or amended by statefstatiite..

The systiBra?wsuesan:mnuaI;publicly'available;financiaIreport^that includes finMcial/statemeri^ Mdrequired suppleinentaty-M the System, That report may be obtain^^ writing to tKe'Muhicipal Employees RetirementSystera of Louisiana, 7937 Office PmkBoulevardj'Batoh Rouge, Louisiana 70809, or by c^ling (225) 925^810.

Fimding Policy. Under Plmi B, members are required by: state ^tue' to contribute 5 .0 percent of their ûal cover^ Ml^ md the Village of Grayson is reqtmed.to cp^ actuâlly detenhinedrate. The current rate lis 3.75 percent of aimuaicoveredlpayroiL Gontnjutioiis tothe System;alsomcludepne-fourth of one percent (except Orleans and East Baton Rouge pmishes)of the taxes showri to be coUectible by the tmclrolls of each parish. These tax doilaia iaretdivided betw^n Plan A andiPlari B based proportionately on the salves of the active members of each plan. The contribution requirieniehls of plan members and the Village of Grayson me established and may be junended by state statute. As provided by Louisiana Revised Statue 11:103, .the employer contributions are determined by actuarial valuation and:me subject to change eacK year based on the results of the valuationfor the prior fiscal year. [Village of Grayson contributions to the System under Plan Bfor the years ending Decemker 31, 2014 were $7,927;-2013 were $11,602; and 2012 were $5,572, dnd2011 were 7,908, respectively, equal to the required contribtdions of each year.

GRAY 14 Notes 37

VILLAGE OF GRAYSON Gniyson, Louisiana

NOTES TO THE FINANGIAL STATEMENTS As of and for the Year Ended December 31» 2014

NOTE 8. ACCOUNTS, SALARIES, AND OTHER PAYABLES

Accounts, salaries, and other payables of $22,;811 ^e ^ follows:

PAYABLES Accounts Payable - General Hund 5,102 Accounts Payable - Enterprise Fund 17.709

TOTAL $22.811

NOTE 9, CONTINGENCIES

Litigation

According to the attorney acting on behalf of die Vil lage, there were no pending litigations or claims as of Decembers ! , 2014. There have been no subsequent leg^ actions to date.

Capital Grant Contingencies: The Village received ftmds from federal and state governmental agencies in Ae ferm ofigr^ts, which is subject to audit by the federal.or state gOyenuheht. The ultimate determihation of amounts received under these programs is generally based upon allowable costs reported to and audited by the government. Until such audits have been completed and fihal settlemehts reached, there exists a cohtihgency to refund any amount received in excess of allowable costs. Management is of the opinion that ho material, liability wi|I result from such audits;

NOTE 10. SUBSEQUENT EVENTS

Subsequent evCTts were evaluated by management up to and including the issue date of this report, June 26, 2014. There were no subsequent events noted which would affect the financial statements for the year ended December 31,2014.

NOTE II. POST-RETIRFMENT HEAl.TH CARE AND LIFE INSURANCE BENEFITS

In compll^ce with.GASB 45.Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions^ the Village of Grayson makes no provision for post-retirement health care or life insurance benefits.

NOTE 12. EMPLOYEE TERMINATION BENEFITS

In compliance with GASB 47 Accounting Standards for Termination Benefits, the Village makes no provision for voluntary early retirement benefits or involuntary severance pay benefits.

NOTE 13. SEGMENT INFORMATION

The Village has issued revenue bonds to support a variety of public services. The fund financial statements report major funds with revenue supported debt for the water and sewer funds. Services provided by these fiinds are described in NOTE I.E. MAJOR FUNDS - Proprietary Funds and also included in the basic financial statements identified as the water and sewer funds.

GRAYi4 Notes 38

VnXAGE OF GRAVSON Grayson, lûisiana

NOTES TO THE FINANCIAL STATEMENTS As.ofand for the Year Ended December 31, 2014

NOTE 14. RISK MANAGEMENT

The Villa^ is exposed'to various risk of loss relatedito torts; theft of, damage to,ând destruction of assets, and injuries^to employees. To h^dle such risk of loss, the Village carries insui^ce coyemge with Trayelers'sThsunmce Companies in Shreyeport, LA. The policy covers property, liability, crime and fiddity, employee liability, and otiters. No;claims have been pald on any of the^policies^diuTng the past three ye^ that exceeds the policies' coverage mounts; There were no significaift iûctions'ihrinsm coyeriê durihg;theyeaf end^ 12r3 j-2014.

GRAY14 tôtes 30

V

VILLAGE OF GRAYSON, LOUISIANA Statement of Revenues, Expenditures,

and Changes in Fund Balances Governmental Funds Budget (GAAP Basis) and Actual

For the Year ended December 31,2014

SCHEDULE 1

GENERAL FUND

Variance with Final Budget

Original Final Favorable Budget Budget Actual (Unfavorable)

Revenues; Property Tabces $ 8.300 8,990 $ 9.419 $ 429 Occupational Licenses 26;nnn 32,800 28,637 (4,163) Fire Assessment (Holum) and Other 27,900 45.000 40,240 (4.760) Franchise Fee 9,000 9,200 9,984 784 Fines 60,000 56,000 48,727 (7,273) Fire insurance Rebate 8.600 9,300 - (9,300) Miscellahebus 31,870 12,400 17.219 4,819 Police Jury 2% tax 3,632 5;86O - (5,800) Contrihiitions 5,200 4,600 - (4,600) Reimbursements - 2,400 - (2.400) Grant Funds^ 31,000 38,000 46,612 8,612 Funds Transferred In - 29,000 44,667 15,667

211,502 253,490 245;505 (7,985)

Expenditures: General Qovemment 261,000 180,900 184,588 (3;688) Public Safety 21,000 16,300 24,760 (8,460) Public Works 13,800 . 31,400 12,561 18,839 TotelExpenditures 295,800 228,600 221^909 6,691

Excess (Defiqency) of Revenues over expenditure (84,298) 24,890 23,596 (1.294)

O^er Finandrig Sources/Uses: Interest Income 700 900 1,008 108

Total Other Financing Sources/Uses 700 900, 1,008 108 Excess {Deficiency) of

24,604 -

Revenues Over Expenditures (83,598) 25,790 24,604 (1,186) Fund Balance Beginning of Year- 134,650 51,052 94,057 43.005 Fund BajancerEnd of Year $ 51,052 $ 76,842 $ . 118,661 $ (41.819)

StmtRevExpChngFndBalGovFfxteBudgAct 41

VILLAGE OF GRAYSON Schedule of Compens^ion Paid to the Mayor ^d Councilmen/Women


CARMEN HEAD, MAYOR $6,000.00 20! Gruse Road Grayson, La. 71435 Salary - $ 213.70 per mo.

SANDRA L. EVANS, MAYOR PROTEMPORE $1,339.20 P.O. Box 144 Grayson, La. 71435 318-649-2699 Salaiy - $ 111.60 per mo.

JIMMY WnmiNGTON $ 1,339 20 1232 HWY 850 Grayson, LA 71435 318-649-2436 Salary - $ 111.60 per mo.

RAYMOND CRUSE, COUNCILMAN $ 1,339^0 P. O, Box 309 Grayson, La. 71435 318-649-7117 Salary-$ 111.60 per mo.

Total $10,018

GRAYUBoardMembComp 43

OTHER REPORTmG REQUIRED BY GOVERNMENT AUDITING

STANDARDS

Jinmiie Self, CPA A Professional Accounting Corporation

2908 Cameron St, Suite C Monroe, LA 71201

,Phone.(3183-323-4656 - Fax (318)388-0724,

iSDEiPENDENt AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUD1TIN0STANDARDS

To the Honorable Mayor And the Bo^d of pirectois Village, of Oniyson Grayi^n, Louisiana

I have auditi^ in ̂ cord^ce with tiie auditing standards generaUy accepted in the United States of America and the standards applicable to financial audits contêd in Government CompfroUer Geheral.of the UnitedStates, the financial sla^rnents of the governmental activities, the businessrtype activities, and each major fund informôn of the Villê of Grayson, Louisiana, as of and for the year ended December 31,2014^ and the related not^ to the financial ^ternents, whicH coIleclively comprise the Village of Gray^n^ Louisiana's bîc fihMcial statements arid have issued my report thereon:dated,Jiirie 29,2015,

Internal Conitrol Over Financial Reporting

In planning,arid perforiiiing my audit, J considered Village;of Grayson, Louisiana's intemalcoritrol OVCT finMcial'repprtii^ (internal control) to detepcnine the audit procedures that are appropriate in die circumst^ces for the purpose of expressmg my ppiriipris pri the financial statements, but not for the purpose ofexpressing an opiniori on. the effectiveness of the Villê of Grayson's ihtemal control pverfuianci^ rej^rtihg. Accprdirigly, I dp not expressman opinion on the effectiveness of the Village's internal control oyer financial repprtiiig.

^deficiency in .internai control ̂ i^s when the desi^ or operatidn of a coritrPl doeshot allow management or employees, in the norinal course of performing their assigiied ftmctioris, to prevent, or detect and correct misstatements oil a timely basis. A material weakness is a deficiency^; or a combination of deficiencies, in intenial cpritrGl such that there is a reasonable possibility that a riiaterial misstatement to theVillage of Gray^n's financial 'Statements will not be jprevented, or detected and corrected on a timely basis. Ksignificant deficiency -is^^ deficiericy, of coiribinatipn of deficienciesj mviiitefriEd control that isiess severe than.a material weakness, yet important enough to merit attention by those charged with governance.

45

My consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies^ih internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these liniitations, during my audit, I did not identify any deficiencies in interned control that I consider to be material weaknesses. However, material weaknesses may exist that have not been identified. I did identify certain deficiencies in internal controldescribed in the accompanying schedule of findings and responses that 1 consider to be significant deficiencies, which is described in the accompanying schedule of findings and responses as items # 2014-01, and # 2014-02.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Village of Grayson' s financial statements,are free from material misstatement, I peitermed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could haye a direct and material effect on the determination of financial statement aniouhts. However,:providihg an opiiiion on compliance with those provisions w^ not an objiectiye of my auditi and accordin^yj I do riot express^ch an opinion. The results of my tests disclosed instances of noncompliiance or other such matters ̂ at are required to be reported xmA&i: Government AudUing Standard, which are described in the accompanying schedule of findings and resporises as items # 2014-01, and 2104-02. > Village of Graysoh's Response to Findings

Village of Grayson's response to the fmdings identified in my audit is described in the accornpanying schedule of findirigs and responses., Village of Graysoii's response was not subjected to the auditing procedures.applied in the audit of the fiii^cial statements, accordingly, I express no opinion on it.

Purpose of this report

The purpose of this report is solely to describe the scope of my te^g of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the entity's internal control of on coihpliarice. This report is an integral p^ of m audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this commuriic^on is not suitable for any other purpose. Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.

Jimmie Self, CPA Monroe, Louisiana June 29, 2015

46

JIMMIE SELF, CPA A Professiot^ Accounting Corporation

2908: Cameron Street,,Suite C Monroe, Louisiana 71201

SCHEDULE OF FINDINGS AND RESPONSES VILLAGE OF GRAYSON

Grayson, Louisiana

Findings for the Guirent Year Ended December 3 U 2014

FRffllNG 2014-1

CRITERIA: Duties should be distributed among varibus employees

CONDITIGNI Inadequate segregation of duties

iGpNTEXT: The ViUê of Graysonh^ a small wdrJt force in place for handling the duties of the office ;f^pnhel.

EFFECT OF CONDITION: Internal contrpl is weakenîby a limrt^ ,

CAIJSBOF CONDITION: The^ff.consistsVpfp^^ clerk and assistant clerk.

' ^^CGNDviEN^ Hire more employees and redistrftuteduti

CLIENT RESPONSE:- Mahageinent mainlaiiK this cî) remedied;due.to lack of fimds.

'CnEOT;RESTONSE:,MMagemen^^^^^^^^^ cPhtinuesitO'realize the he^ for improvement, and condhues to seek theiguidance fern reli^le M

FINDING 2014-2

Louiriana Statute 24-513 requires that the Village of Gfay^n prepare Md'submit it's audited report toithe Lpuisiana Legislative Auditor no later th^ S mpn^s after the most recent ,fiMal year, Due to the feet the audiffinn suffered time shortjês diieito an extend^, iiiness md finally death Pf a meihbef of the staff, the audit of the VilJê of Grayson wasuMble to besubmitt^-withlnitheprescribed time period. This was not due,to any probleih Pf the. Villê of,Grayson;

CRITERIA: The LARS:24-51 Saudft must,be submitted within six months after the most recentfiscal year.

CONDITION: The audit was not timely submitted.

CONTEXT: The audit;firm, due to extinguishing circumstances as stated below was unable to timely complete,the report

EFFECT OF CONDITION: The Audit-was untimely filed, accordifig to the requirement of the Statute, .causing the Village of Grayson to be in violation of the law.

CAUSE OF CONDITION: The audit firm, due to extended severe illness, and finally death of a staff member, was unable to complete Ihe audit within this time frame.

RECOMMENDATION: Be mpre'alert to the filing requirements.

47

CLIENT RESPONSE: Management maintains they agree to the above recommendation. ^

CURRENT'SJATUS: The audit report has-beencompietedand submitted as of July 14,2015.

Schedule of Prior Year Findings and Responses For the YeariEnded December 3 L 2013

FINDING 2013-1

CRITERIA: Duties shouiid be distributed to various employees

CONDITION: Inadequate segregation of duties

CONTEXT: The Village of Grayson has a srnallwork force in place for handling die duties ofthe office personnel.

EFFECT OF CONDITION: Intemal continliis we^ened by a liinh^^ staif

CAUSEOF CGNDITIpN: Tlie ^ff.consirtsiof only a town clerk and assistant clerk.

REGONMENDATldN: Hire ihoreTemplbye'es and redistribirte duties,

CLIENT RESPONSE: Management maintains;this^c^ be remedied due to lack offimds.

iStatus of findings @ 12-3:1-14: The accounting system is much jmprpyed m

48

Jimhiie Self, CPA A Professional Accounting Corporation

2908 Cameron 'Street, Suite C Monroe, Louisiana 71201

Phone (318) 323-4656 Fax (318) 388-0724

SUMMARY SCHEDULE OF FINDINGS VILLAGE OF GRAYSON

Grayson, Louisiana For the Year Ended December 31,2014.

I have audited the financial statements of Village of Grayson as of and for the year, ended December 31, 2014and have issued my reportidated June 29,2015. I conduct^ my audit in accordance with generally accepted auditing'standards applicable to fihancial audits contained in Government Aitditing.Standards; issued by the Comptroller General of the United States. My audit of the financial statements as of December 31,2014 resulted in an unqualified opinion (qualified, adverse, disclaimer-

Section I Summary of Auditor's Reports

a. Report on Internal Control and Compliance Material to the Financial Statements

Internal Control Material Wealoiesses yes X no Internal Control Deficiencies X ves ^no

Compliance Compliance material to Financial Statements ves x no

b. Federal Awards: None

c. Identification of major Programs:

None.

GRAYMKindingsSum 49

Village of Grayson

Grayson, Louisiana

12-31-2014

Schedule of Compensation,

Benefits and Of/ier Poy/nents to Agency Head

or Chief Executive Officer

Agency Head Name: Carmen Head

Purpose Amount Salary $6,000 Benefits-insurance 0 Benefits-retirement Q Benefits-<list any other here> 0 Carallowance 0 Vehicle provided by government 0 Per diem 0 Reimbursements 0 Travel Q Registration fees 0 Conference travel 0 Continuing professional education fees 0 Housing 0 Unvouchered expenses* 0 Special meals 0

0

Carmen Head, Mayor, receives $6,000 annually. She receives no other benefits.

Other board members (4) received $1,339,20, and no other benefits for the year

Ended 12-31-2014.

50

Schedule of Comtjsnsation, benefits 2014

Village of Grayson - app.lla.state.la.us OF GRAYSON Grayson, Louisiana Table of Contents As of and...

Documents

Transcript of Village of Grayson - app.lla.state.la.us OF GRAYSON Grayson, Louisiana Table of Contents As of and...