A m
TOWN OF SUNSET, LOUISIANA
Financial Report
Year Ended June 30,2010
Under provisions of state law, this report is a public document A copy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office ofthe Legislative Auditorand, where appropriate, at the office of the parish clerk of court.
Release Date
TABLE OF CONTENTS
Page
Independent Auditors' Report 1-2
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCDU. STATEMENTS (GWFS) Statement of net assets 5 Statement of activities 6
FUND FINANCL\L STATEMENTS (FFS) Balance sheet - govemmental funds 9 Reconciliation ofthe govenmiental funds balance sheet
to the statement of net assets 10 Statement of revenues, expenditures, and changes in fund balances-
govemmental funds 11 Reconciliation ofthe statement of revenues, expenditures, and
changes in fund balances of govemmental funds to the statement of activities 12 Statement of net assets - proprietary fijnd 13 Statement of revenues, expenses, and changes in flind net
assets - proprietary fimd 14 Statement of cash flows - proprietary fund 15-16
Notes to basic financial statements 17-36
REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedules:
General Fund 38 Sales Tax Special Revenue Fund 39
OTHER SUPPLEMENTARY INFORMATION General Fund - budgetary comparison schedule - revenues 41 General Fund - budgetary comparison schedule- expenditures 42-44 Enterprise Fund - departmental analysis of revenues and expenses 45 Enterprise Fimd - comparative statement of revenues, expenses, and changes
in fund net assets - proprietary fiind 46 Schedule of number of ufility customers (unaudited) 47 Schedule of utility rates (unaudited) 48 Schedule of insurance in force (unaudited) 49-50
INTERNAL CONTROL AND COMPLL\NCE Report on Intemal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Govemment Auditing Standards 52-53
Summary schedule of current and prior year audit findings and coirective action plan 54
KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC C. Burton Kolder, CPA*
RuMcIl F. Chunpigne. CPA*
ViaorR Slaven, CPA*
P. Troy Courville, CPA*
GCTM A Thibodwmx, Jr..CPA*
Robert S. Ctncr. CPA*
Arthur R, Mixon. CPA*
Tynet E. Mixon, Jr^ CPA
Allen J. UBry, CPA
Albert R. Leger. CPAJ>FS,CSA* Penny Angelle Scruggins, CPA Christine L Cousin, CPA Mary T. TWbodeaux. CPA MarshaD W. Guidry. CPA Alan M. Taylor, CPA James R Roy, CPA Robed J. Metz. CPA Kelly M. Doucet, CPA Cheryl L Bartley. CPA Mandy B, Self, CPA Paul L Delcambre, Jr. CPA Wavte F. Arcement. CPA. CVA Kristm B. Dauzat. CPA Richard R. Anderson Sr., CPA Carolyn C. Anderson. CPA
CERTIFIED PUBLIC ACCOUNTANTS
OFFICES
1B3 South Beadle Rd Lafayette. LA 70508 Phone (337) 232-4141 Fax (337) 232-6860
113 East Bridge St. Breaux Brxlge. LA 70517 Phone (337) 332-4020 Fax (337) 332-2867
1234 David Dr. Ste 203 Morgan City. LA 70380 Phone (985) 384-2020 Fax (985) 384-3020
408 West Cotton Street Vllle Platte, LA 70566 Phone (337) 363-2702 Fax (337) 363-3049
332 West Sixth Avenue Oberiin, LA 70655 Phone (337) 63^4737 Fax (337) 639^568
450 East Main Street New Ibena, LA 70560
Phone (337) 367-9204 Fax (337) 367-9206
200 South Main Streel Abbevitto, LA 70510
Phooe (337) 893-7944 Fax (337) 893-7946
1013 Main Street FrarAlln. LA 70538
Phone (337) 828-0272 Fax (337) 828-0290
133 East Waddil St Mar1(Bville LA 71351
Phone (318) 253-9252 Fax (318) 253-6681
621 Main Street Pineville, LA 71360
Phone (318) 442-4421 Fax (318) 442-9633
INDEPENDENT AUDITORS' REPORT WEBSITE
WWW.KCSRCPAS COM
Retired' Corrad 0. Chapman, CPA' 2006 Harry J. Clostio, CPA 2007
' A Piofsulonal Accounting Corpontton
The Honorable Cecil Lavergne, Mayor, and Members ofthe Board of Aldermen
Town of Sunset, Louisiana
We have audited the accompanying basic fmancial statements of the govemmental activities, the business-type activities, and each major fimd, and the aggregate remaining flind information of the Tov^ of Sunset, Louisiana, as of and for the year ended June 30, 2010, which collectively comprise the Tovm's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Town of Sunset, Louisiana's management. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General ofthe United States, Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are fi^e of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the govemmental activities, the business-type activities, and each major fund of the Town of Sunset, Louisiana, as of June 30, 2010, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Govemment Auditing Standards, we have also issued our report dated November 9, 2010, on our consideration ofthe Town of Sunset, Louisiana's intemal control over financial reporting and on our 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 our testing of intemal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the intemal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Govemment Auditing Standards and should be considered in conjunction with this report in considering the results of our audit.
Member of: AMERICAN INSTITUTE OF CERTFIED PUBLIC ACCOUNTANTS
Member of: SOCIETY OF LOUISIANA
CERTIFIED PUBLIC ACCOUNTANTS
The required supplementary information on pages 38 and 39 is not a required part of the basic financial statements but is supplementary information required by the Govemmental Accounting Standards Board. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
The Town of Sunset has not presented management's discussion and analysis that the Govemmental Accounting Standards Board has determined is necessary to supplement, although not required to be part of, the basic financial statements.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Sunset, Louisiana's fmancial statements as a whole. The other supplementary information on pages 41 through 50 is presented for purposes of additional analysis and is not a required part of the basic financial statements. All of the supplementary information, except for the schedule of number of utility customers, the schedule of utility rates and the schedule of insurance in force, has been subjected to the auditing procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in relation to the basic financial statements taken as a whole. The schedule of number of utility customers, the schedule of utility rates, and the schedule of insurance in force have not been subjected to the auditing procedures applied in the audit ofthe basic fmancial statements and accordingly, we express no opinion on them.
Kolder, Champagne, Slaven & Company, LLC Certified Public Accountants
Lafayette, Louisiana November 9, 2010
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS)
TOWN OF SUNSET, LOUISIANA
Statement ofNet Assets June 30, 2010
2010
ASSETS Current assets:
Cash and interest-bearing deposits Receivables, net Due from other govemmental units Intemal balances Prepaid items
Total current assets
Noncurrent assets: Restricted assets:
Cash and interest-bearing deposits Capital assets:
Land Construction in progress Capital assets, net
Total noncurrent assets
Total assets
LL\BILrriES Current liabilities:
Accounts, salaries and other payables Bonds payable Accmed interest
Total current liabilities
Noncurrent liabilities: Customers' deposits Bonds payable
Total noncurrent liabilities
Total liabilities
NET ASSETS Invested in capital assets, net of related debt Restricted for debt service Unrestricted
Total net assets
Govemmental Activities
$ 423,755 303
65,617 21,266 4,157
Business-Type Activities
$ 23,361 62,023
-
(21.266) 3,314
•
Total
$ 447,116 62,326 65,617
-7,471
515,098 67,432
144,140
582,530
144,140
15,000 114,484 251,177
380,661
895,759
50,210 -
935,781
1,130,131
1,197.563
65,210 114,484
1,186,958
1,510,792
2,093,322
73,873 --
73,873
_
-
-
73,873
380,661 -
441,225
$ 821,886
32,771 26,773
215
59,759
86.960 105,468
192,428
252,187
880,523 30.192 34.661
$ 945,376
106,644 26,773
215 133,632
86,960 105.468
192.428
326,060
1,261.184 30.192
475,886
$1,767,262
The accompanying notes are an integral part ofthe basic financial statements.
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FUND FINANCIAL STATEMENTS (FFS)
MAJOR FUND DESCRIPTIONS
General Fund
The General Fund is used to account for resources traditionally associated with govemments which are not required to be accounted for in another fund.
Special Revenue Fund
Sales Tax Fund -To account for the receipt and use of proceeds ofthe Towoi's two 1% sales and use taxes. The taxes are dedicated to constructing, acquiring, extending, improving and/or maintaining sewers and sewerage disposal works, waterworks, public streets, roads, alleys, sidewalks, and drainage facilities, including the purchase of equipment therefore. The 2009 tax also includes municipal buildings, fire protection and police protection, including equipment, facilities and furnishings. Both tax proceeds may also be flinded into bonds or used to pay any bonded or funded indebtedness of the Tovm incurred for such capital purposes, to the extent and in the manner provided by state law.
Debt Service Fund
General Obligation Bonds Fund -To account for the monies remaining from the collection of a 1.88 property tax millage for the payment of 1988 general obligation bonds which are paid off.
Enterprise Fund
Utilitv Fund -To account for the provision of water, sewerage and gas services to residents ofthe Town. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection.
TOWN OF SUNSET, LOUISL\NA
Balance Sheet Govemmental Funds
June 30. 2010
ASSETS
Cash and interest-bearing deposits Receivables:
Taxes Accmed interest Due from other govemmental units Due from other funds
Prepaid items Total assets
General
$351,407
295 8
65,617 21,266 4,157
$ 442,750
Special Revenue
$70,976
_
-
-
--
$70,976
Debt Service
$ 1,372
_
-
-
--
S 1,372
$
1
Total
423,755
295 8
65,617 21.266 4.157
515.098
LIABILITIES AND FUND BALANCES
Liabilities: Accounts payable Cash bonds payable
Total liabilities
Fund balances -Reserved for prepaid items Unreserved
Total fimd balances
Total liabilities and fund balances
$ 49,738 24,135
49.738 24.135
73.873
4,157 364,720
368,877
$ 442,750
_
70,976
70,976
$70,976
-
1,372
1,372
$ 1,372
73,873
4,157 437,068
441,225
$ 515.098
The accompanying notes are an integral part ofthe basic financial statements.
TOWN OF SUNSET, LOUISLANA
Reconciliation ofthe Govemmental Funds Balance Sheet to the Statement ofNet Assets
June 30, 2010
Total fund balances for govemmental funds at June 30, 2010 $ 441,225
Total net assets reported for govemmental activities in the statement of net assets is different because:
Capital assets used in govemmental activities are not fmancial resources and, therefore, are not reported in the funds. Those assets consist of:
Land $ 15,000 Constmction in progress 114,484 Buildings, net of $217,910 accumulated depreciation 28,202 Infrastructure, net of $26,349 accumulated depreciation 49,694 Machinery and equipment net of $1,056,795 accumulated depreciation 173,281 380,661
Total net assets of govemmental activities at June 30,2010 $ 821,886
The accompanying notes are an integral part ofthe basic financial statements.
10
TOWN OF SUNSET, LOUISIANA
Statement of Revenues, Expenditures, and Changes in Fund Balances-Govemmental Funds
For the Year Ended June 30,2010
Revenues: Taxes Licenses and permits Intergovemmental Fines and forfeits Miscellaneous
Total revenues
Expenditures: Current -
General govemment Public safety:
Police Fire
Streets Capital outlay Debt service
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses): Transfers in Transfers out
Total other financing sources (uses)
Net changes in fund balances
Fund balances beginning
Fund balances, ending
General
$ 240,196 112,260 178,204 173,922 104,449
809,031
369,720
560,031 29,248
193,798 140,960
-
1,293,757
(484,726)
637,872 -
637,872
153,146
215,731
$ 368,877
Special Revenue
$ 498,358 -
--
398
498,756
4,938
-
--
--
4,938
493.818
-
(504,472)
(504.472)
(10,654)
81,630
$ 70,976
Debt Service
$ --
--
122
122
-
-
--
-
151
151
(29)
--
-
(29)
1,401
$ 1,372
Total
$ 738,554 112,260 178.204 173,922 104,969
1,307,909
374,658
560,031 29.248
193.798 140.960
151
1,298,846
9,063
637.872 (504,472)
133,400
142,463
298,762
$ 441,225
The accompanying notes are an integral part ofthe basic fmancial statements.
11
TOWN OF SUNSET, LOUISIANA
Reconciliation ofthe Statement of Revenues, Expenditures, and Changes in Fund Balances of Govemmental Funds
to the Statement of Activities For the Year Ended June 30, 2010
Total net changes in fund balances at June 30, 2010 per Statement of Revenues, Expenditures and Changes in Fund Balances $ 142,463
The change in net assets reported for govemmental activities in the statement of activities is different because:
Govemmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Govemmental funds do not report gains or losses on sales of assets. They only report the proceeds form the sale.
Capital outlay which is considered expenditures on Statement of Revenues, Expenditures and Changes in Fund Balances $ 140,960
Depreciation expense for the year ended June 30,2010 (109,492) Gain on sale of capital assets 22,659 Proceeds from the sale of capital assets (83,500) (29,373)
Total changes in net assets at June 30,2010 per Statement of Activities $ 113,090
The accompanying notes are an integral part of the basic financial statements.
12
TOWN OF SUNSET. LOUISIANA
Statement ofNet Assets Proprietary Fund
June 30, 2010
ASSETS Current assets:
Cash and interest-bearing deposits, at cost $ 23,361 Receivables -
Accounts receivable 39,649 Unbilled utility receivables 21,011 Other receivables 1,363
Prepaid Items 3,314
Total current assets 88,698
Noncurrent assets: Restricted assets -
Cash and interest-bearing deposits, at cost 144,140
Capital assets -Land 50,210 Other capital assets, net of accumulated depreciation 935,781
Total noncurrent assets 1,130,131
Total assets 1,218,829
LIABILFTIES Current liabilities: Accounts payable 31,080 Due to other funds 21,266 Other liabilities 1,691 Payable from restricted assets -
Revenue bonds 26,773 Accmed interest 215
Total current liabilities 81,025
Noncurrent liabilities: Customers' deposits 86,960 Revenue bonds payable 105,468
Total noncurrent liabilities 192,428
Total liabilities 273,453
NET ASSETS Invested in capital assets, net of related debt 880,523 Restricted for debt service 3 0,192 Unrestricted 34,661
Total net assets $ 945.376
The accompanying notes are an integral part ofthe basic financial statements.
13
TOWN OF SUNSET, LOUISIANA
Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Fund
For the Year Ended June 30, 2010
Operating revenues: Charges for services -
Gas sales Water sales Sew er charges
Miscellaneous Total operating revenues
Operating expenses: Gas department Water department Sewer department
Total operating expenses
Operating income
Nonoperating revenues (expenses): Interest income Interest expense
Total nonoperating revenues (expenses)
Income before transfers
Transfers out
Change in net assets
Net assets, beginning
Net assets, ending
$ 283,934
221,319
143,544
28,442
677,239
214,817
222,688
136,389
573,894
103,345
581
(6,480)
(5,899)
97,446
(133,400)
(35,954)
981.330
$ 945,376
The accompanying notes are an integral part ofthe basic financial statements.
14
TOWN OF SUNSET, LOUISIANA
Statement of Cash Flows Proprietary Fund
For the Year Ended June 30, 2010
Cash flows from operating activities: Receipts from customers $ 648,797 Payments to suppliers (391,448) Payments to employees for payroll and benefits (88,439) Other receipts 28,442
Net cash provided by operating activities 197,352
Cash flows fi"om noncapital financing activities: Transfers to other funds (133,400)
Cash flows from capital and related financing activities: Principal paid on revenue bonds payable (25,597) Interest and fiscal charges paid on revenue bonds payable (6,581) Net change in meter deposits 2,502 Acquisition of property, plant and equipment (20,126)
Net cash used by capital and related financing activities (49,802)
Cash flows from investing activities: Interest on investments 581
Net decrease in cash and cash equivalents 14,731
Cash and cash equivalents, beginning of period 152,770
Cash and cash equivalents, end of period $ 167.501
(continued)
TOWN OF SUNSET, LOUISLANA
Statement of Cash Flows Proprietary Fund - (Continued)
For the Year Ended June 30, 2010
Reconciliation of operating income to net cash provided by operating activities:
Operating income
Adjustments to reconcile operating income to net cash provided by Of>erating activities: Depreciation Changes in current assets and liabilities:
Decrease in accounts receivable Decrease in unbilled utility receivable Increase in other receivables Decrease in accounts payable Decrease in other liabilities
Net cash provided by operating activities
$ 103,345
92,514
2,961 3,252 (280)
(3,973) (467)
94,007
$ 197,352
Reconciliation of cash and cash equivalents per statement of cash flows to the balance sheet:
Cash and cash equivalents, beginning of period, restated Cash and interest-bearing deposits - unrestricted Cash and interest-bearing deposits - restricted
Total cash and cash equivalents
$ 15,657 137,113 152,770
Cash and cash equivalents, end of period -Cash and interest-bearing deposits - unrestricted Cash and interest-bearing deposits - restricted
Total cash and cash equivalents
23,361 144,140 167,501
Net decrease $ 14,731
The accompanying notes are an integral part ofthe basic financial statements.
16
TOWN OF SUNSET, LOUISIANA
Notes to Basic Financial Statements
(1) Summarv of Significant Accounting Policies
The accompanying financial statements of the Town of Sunset (Town) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to govemmental units. GAAP includes all relevant Govemmental Accounting Standards Board (GASB) pronouncements. In the govemment-wide financial statements and the fund financial statements for the proprietary fiind. Generally Accepted Accounting Standards (ASC) on or before November 30, 1989, have been applied unless those standards conflict with or contradict GASB pronouncements, in which case. GASB prevails. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note.
A. Financial Reporting Entitv
The Town of Sunset was incorporated under the provisions ofthe Lawrason Act. The Town operates under the Mayor-Board of Aldermen form of govemment.
Govemmental Accounting Standards Board (GASB) Statement No. 14 established criteria for determining the govemmental reporting entity and component units that should be included within the reporting entity for financial reporting purposes. Under provisions of this Statement, this report includes all funds that are controlled by or dependent on the Tovm executive and legislative branches (the Mayor and Board of Aldermen). Control by or dependence on the Town was determined on the basis of budget adoption, taxing authority, authority to issue debt, election or appointment of goveming body, and other general oversight responsibility. The Town has no components and therefore, none are presented in the govemment-wide financial statements.
B. Basis of Presentation
Govemment-Wide Financial Statements (GWFS)
The statement of net assets and statement of activities display information about the reporting govemment as a whole. They include all funds of the reporting entity. The statements distinguish between govemmental and business-type activities. Govemmental activities generally are financed through taxes, intergovenmiental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to extemal parties for goods or services.
The statement of activities presents a comparison between direct expenses and program revenues for the business-type activities of the Town and for each function of the Town's govemmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) fees, fines, and charges paid by the recipients of goods or services offered by the programs, and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
17
TOWN OF SUNSET, LOUlSL\NA
Notes to Basic Financial Statements (Continued)
Fund Financial Statements
The accounts ofthe Town are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a separate set of self-balancing accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.
The various funds of the Town are classified into two categories: govemmental and proprietary. The emphasis on fimd financial statements is on major govemmental and enterprise funds, each displayed in a separate column. A fund is considered major if it is the primary operating fund of the Town or meets the following criteria:
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual govemmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type: and
b. Total assets, liabilities, revenues, or expenditures/expenses of the individual govemmental or enterprise fund are at least 5 percent of the corresponding total for all govemmental and enterprise funds combined.
The major funds ofthe Town are described below:
Govemmental Funds -
General Fund
The General Fund is the general operating fund of the Town. It is used to account for all financial resources except those required to be accounted for in another fiind.
Special Revenue Fund
Sales Tax Fund -
The Sales Tax Fund is used to account for the proceeds ofthe two 1% sales and use taxes that are legally restricted to expenditures for specific purposes.
Debt Service Fund - General Obligation Bonds Fund -
The General Obligation Bonds Fund is used to account for the monies remaining from the collection of a 1.88 property tax millage dedicated for the payment of 1988 general obligation bonds which are paid off.
18
TOWN OF SUNSET. LOUISIANA
Notes to Basic Financial Statements (Continued)
Proprietary Fund -
Enterprise Fund
Enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent ofthe goveming body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the goveming body has decided that periodic determination of revenues eamed, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Town of Sunset's enterprise fund is the Utility Fund.
Measurement Focus/Basis of Accounting
Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless ofthe measurement focus applied. Measurement Focus
On the govemment-wide statement of net assets and the statement of activities, both govemmental and business-type activities are presented using the economic resources measurement focus as defined in item b. below.
In the fiind financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate:
a. All govemmental funds utilize a "current financial resources" measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period.
b. The proprietary fiind utilizes an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net assets.
19
TOWN OF SUNSET, LOUISLANA
Notes to Basic Financial Statements (Continued)
Basis of Accounting
In the govemment-wide statement of net assets and statement of activities, both govemmental and business-type activities are presented using the accmal basis of accounting. Under the accmal basis of accounting, revenues are recognized when eamed and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33 "Accounting and Financial Reporting for Nonexchange Transactions."
Govemmental fund financial statements are reported using the current financial resources measurement focus and the modified accmal basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpwse, the govemment considers revenues to be available if they are collected within 60 days ofthe end ofthe current fiscal period. Expenditures (including capital outlay) generally are recorded when a liability is incurred, as under accmal accounting. However, debt service expenditures are recorded only when payment is due.
The proprietary fimd utilizes the accmal basis of accounting. Under the accmal basis of accounting, revenues are recognized when eamed and expenses are recorded when the liability is incurred or economic asset used.
D- Assets, Liabilities and Equitv
Cash and interest-bearing deposits
For purposes ofthe statement of net assets, cash and interest-bearing deposits include all demand accounts, savings accounts, and certificates of deposits of the Tovra. For the purpose of the proprietary fund statement of cash flows, "cash and cash equivalents" include all demand and savings accounts, and certificates of deposit or short-term investments with an original maturity of three months or less.
Interfund receivables and payables
During the course of operations, numerous transactions occur between individual fimds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as "due to and from other funds." Short-term interfiind loans are reported as "interfund receivables and payables." Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund receivables and payables between funds within govemmental activities are eliminated in the statement of net assets.
20
TOWN OF SUNSET, LOUISIANA
Notes to Basic Financial Statements (Continued)
Receivables
In the govemment-wide statements, receivables consist of all revenues eamed at year-end and not yet received. Major receivable balances for the govemmental activities include sales and use taxes and franchise taxes. Business-type activities report customer's utility service receivables as their major receivables. Uncollectible utility service receivables are recognized as bad debts through the establishment of an allowance account at the time information becomes available which would indicate the uncollectibility ofthe particular receivable. The allowance for uncollectibles for customers' utility receivables was $2,823 at June 30, 2010. Unbilled utility service receivables resulting from utility services rendered between the date of meter reading and billing and the end ofthe month, are recorded at year-end.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastmcture assets, are reported in the applicable govemmental or business-type activities columns in the govemment-wide or fmancial statements. Capital assets are capitalized at historical cost or estimated cost if historical is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The Tovra maintains a threshold level of $1,000 or more for capitalizing capital assets.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Prior to July 1, 2001, governmental funds' infi-astmcture assets were not capitalized. These assets have been valued at estimated historical cost.
Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation reflected in the statement of net assets. Depreciation is provided over the assets' estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows:
Buildings 40 years Equipment 5 years Utility system and improvements 20-40 years Infrastmcture 20 years
In the fund financial statements, capital assets used in govemmental fund operations are accounted for as capital outlay expenditures of the govemmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the govemment-wide statements.
21
TOWN OF SUNSET, LOUISLANA
Notes to Basic Financial Statements (Continued)
Restricted Assets
Restricted assets include cash and interest-bearing deposits ofthe proprietary fiind that are legally restricted as to their use. The restricted assets are related to the revenue bond accounts and utility meter deposits.
Long-term debt
The accounting treatment of long-term debt depends on whether the assets are used in govemmental fund operations or proprietary fund operations and whether they are reported in the govemment-wide or fiind financial statements.
All long-term debt to be repaid from govemmental and business-type resources is reported as liabilities in the govemment-wide statements. The long-term debt consists primarily of the revenue bonds payable and utility meter deposits payable.
Long-term debt for govemmental fiinds is not reported as liabilities in the fiind financial statements. The debt proceeds are reported as other financing sources and payment of principle and interest reported as expenditures. The accounting for proprietary fiind long-term debt is the same in the fund statements as it is in the govemment-wide statements.
Compensated Absences
Vacation and sick leave are recorded as expenditures of the period in which paid. Vacation must be taken in the year accmed and cannot be carried over. Sick leave is accumulated by employees at a rate dependent upon number of years of employment. Although sick leave is available for employees when needed, it does not vest nor is it payable at termination of employment. Therefore, no liability has been recorded in the accounts as of June 30, 2010.
Equity Classifications
In the govemment-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 balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, constmction, or improvement of those assets.
22
TOWN OF SUNSET, LOUISL\NA
Notes to Basic Financiai Statements (Continued)
b. Restricted net assets - Consists of net assets with constraints placed on the use either by (1) extemal groups such as creditors, grantors, contributors, or laws or regulations of other govemments; or (2) law through constitutional provisions or enabling legislation.
c. Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt."
In the fiind statements, govemmental fund equity is classified as fund balance. Fund balance is further classified as reserved and unreserved, with unreserved further split between designated and undesignated. Proprietary fund equity is classified the same as in the govemment-wide statements.
E. Revenues, Expenditures, and Expenses
Operating Revenues and Expenses
Operating revenues and expenses for proprietary funds are 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 financing, noncapital financing, or investing activities.
Expenditures/Expenses
In the govemment-wide financial statements, expenses are classified by function for both governmental and business-type activities.
In the fiind financial statements, expenditures are classified as follows:
Govemmental Funds - By Character Proprietary Fund - By Operating and Nonoperating
In the fiind financial statements, govemmental funds report expenditures of financial resources. Proprietary funds report expenses relating to use of economic resources.
Interfiind Transfers
Permanent reallocations of resources between fiinds of the reporting entity are classified as interfund transfers. For the purposes of the statement of activities, all interfund transfers between individual govemmental fiinds have been eliminated.
23
TOWN OF SUNSET, LOUISIANA
Notes to Basic Financial Statements (Continued)
Revenue Restrictions
The TowTi has various restrictions placed over certain revenue sources fi'om state or local requirements. The primary restricted revenue sources include:
Revenue Source Legal Restrictions of Use Sales Tax See Note 3 Utility Fund Revenue Debt Service and Utility Operations
The Town uses unrestricted resources only when restricted resources are fiilly depleted.
Budget and Budgetary Accounting
The Tovm follows these procedures in establishing the budgetary data reflected in the financial statements:
1. Prior to June 15, the Town Clerk submits to the Mayor and Board of Aldermen a proposed operating budget for the fiscal year commencing the following July 1.
2. A summary ofthe proposed budget is published and the public notified that the proposed budget is available for public inspection. At the same time, a public hearing is called.
3. A public hearing is held on the proposed budget at least ten days after publication ofthe call for the hearing,
4. After the holding of the public hearing and completion of all action necessary to finalize and implement the budget, the budget is adopted through passage of a resolution prior to the commencement of the fiscal year for which the budget is being adopted.
5. Budgetary amendments involving the transfer of funds from one department, program or fiinction to another or involving increases in expenditures resulting from revenues exceeding amounts estimated require the approval ofthe Board of Aldermen.
6. All budgetary appropriations lapse at the end of each fiscal year.
7. Budgets for all funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgeted amounts are as originally adopted or as amended by the Board of Aldermen. Such amendments were not material in relation to the original appropriations.
24
TOWN OF SUNSET, LOUISIANA
Notes to Basic Financial Statements (Continued)
H. Use of Estimates
The preparation of fmancial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date ofthe fmancial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.
(2) Ad Valorem Taxes
Ad valorem taxes attach as an enforceable lien on property as of January 1 of each year. The taxes are based on assessed values determined by the Tax Assessor of St. Landry Parish and are collected by the Sheriff. Taxes were billed to taxpayers by the Assessor in November and are due by December 31, becoming delinquent on January 1 ofthe following year. Tovm property tax revenues are budgeted in the year billed.
For the year ended June 30, 2010, taxes of 6.56 mills were levied on property with assessed valuations totaling $16,756,260 and were dedicated for general corporate purposes.
Gross taxes levied for the current fiscal year totaled $109,748. The taxes are remitted to the Town net of deductions for Pension Fund contributions.
(3) Sales and Use Tax
Proceeds of two 1 percent sales and use taxes (accounted for in the Sales Tax Fund - a special revenue fiind) levied by the Town of Sunset (2010 collections $498,358) are dedicated to the following purposes:
Constmcting and purchasing municipal, fire and police department facilities, fiimishings and equipment; opening, constmcting, and improving drains, drainage canals, and subsurface drainage; constmcting. acquiring, or improving any work of public permanent improvement; and purchasing and acquiring all equipment and fiimishing for the public works, buildings, improvement, and facilities ofthe Town of Sunset.
(4) Cash and Interest-Bearing Deposits
Under state law, the Town may deposit fimds within a fiscal agent bank organized under the laws of the State of Louisiana, the laws of any other state in the Union, or the laws of the United States. The Tovm may invest in certificates and time deposits of the state banks organized under
25
TOWN OF SUNSET, LOUISIANA
Notes to Basic Financial Statements (Continued)
Louisiana law and national banks having principal offices in Louisiana. At June 30. 2010, the Town had cash and interest-bearing deposits (book balances) totaling $591,256 as follows:
Demand deposits $ 405,232 Money maricet accounts 143,135 Time deposits 42,889
Total $591,256
Custodial credit risk for deposits is the risk that in the event of the failure of a depository financial institution, the Town's deposits may not be recovered or will not be able to recover collateral securities that are in the possession of an outside party. These deposits are stated at cost, which approximates market. Under state law, these deposits, (or the resulting bank balances) must be secured by federal deposit insurance or similar federal security or the pledge of securities owned by the fiscal agent bank. The market value ofthe pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agent bank. These securities are held in the name of the Town or the pledging fiscal agent bank by a holding or custodial bank that is mutually acceptable to both parties. Deposit balances (bank balances) at June 30, 2010, were exposed to custodial credit risk as follows:
Bank balances $625,715
Federal deposit insurance 625,715 Uninsured and collateral held by the pledging bank or other agency
but not in the name ofthe Town -
Total FDIC insurance and collateral $ 625,715
(5) Receivables
Receivables at June 30, 2010 of $62,326 consist ofthe following:
Ad valorem taxes Accounts Unbilled Other
Totals
Govemmental Activities General
Fund $ 295
-
-
8
$ 303
Business-type Activities Utility Fund
$ -
39,649 21,011
1,363
$ 62,023
Total $ 295
39.649 21,011
1,371
$ 62,326
26
TOWN OF SUNSET, LOUISLANA
Notes to Basic Financial Statements (Continued)
The schedule of aged accounts for the Utility Fund accounts receivable as of June 30, 2010 was as follows:
Current 30 days 60 days 90 days
Total
$32,365 4,042 1,849 1,393
$39,649
(6) Due from Other Govemmental Units
Due from other govemmental units consisted ofthe following:
Franchise Fees License Fees Beer Tax Racino Revenue Fire Insurance Rebate Other
Total
Govemmental Activities
$
$
32,728 17,854 1,876 3,533 8,126 1,500
65,617
(7) Restricted Assets
Restricted assets consisted ofthe following at June 30,2010:
Customers' deposits Revenue bond depreciation and contingency Sewer reserve account
Total restricted assets
Business-Type Activities $ 90,106
32,804 21.230
$ 144,140
27
TOWN OF SUNSET, LOUISIANA
Notes to Basic Financial Statements (Continued)
(8) Capital Assets
Capital asset activity for the year ended June 30, 2010 was as follows:
Govemmental activities: Capital assets not being depreciated:
Land and constmction in progress Other capital assets:
Buildings Infrastmcture Equipment
Totals
Less accumulated depreciation Buildings Infrastmcture Equipment
Total accumulated depreciation
Govemmental activities, capital assets, net
Business-type activities: Capital assets not being depreciated:
Land Other capital assets:
Utility system and extensions Machinery and equipment
Totals Less accumulated depreciation
Utility system and extensions Machinery and equipment
Total accumulated depreciation
Business-type activities, capital assets, net
Balance 07/01/09
$ 75,841
273,436 76,043
1,203,600
1,628,920
239,056 22,860
956,970
1,218,886
$ 410,034
$ 50,210
5,581,027 14,743
5,645,980
4,568,232 19,369
4,587,601
$1,058,379
Additions
$
—
—
1
$
—
1
114,484
-
-26,476
140,960
6,178 3,489
99,825
109,492
31,468
-
20,126 -
20,126
92,001 513
92,514
(72,388)
Deletions
$
L
$
L
60,841
27,324 --
88,165
27,324 --
27,324
60,841
-
_
--
-
_
Balance 06/30/10
$ 129,484
246,112 76,043
1,230,076
1,681,715
217,910 26,349
1,056,795
1,301,054
$ 380,661
$ 50,210
5,601,153 14,743
5,666,106
4,660,233 19,882
4,680,115
$ 985,991
28
TOWN OF SUNSET, LOUISIANA
Notes to Basic Financial Statements (Continued)
Depreciation expense was charged to govemmental activities as follows:
General govemment $ 4,221 Police 38,888 Fire 59,815 Streets 6,568
Total depreciation expense $ 109,492
Depreciation expense was charged to business-type activities as follows:
Water $ 42,115 Gas 12,542 Sewer 37,857
Total depreciation expense $ 92,514
(9) Accounts. Salaries, and Other Payables
The accounts, salaries, and other payables consisted ofthe following at June 30, 2010:
Govemmental Business-Type Activities Activities Total
Accounts Cash Bonds Other liabilities
$ 49.738
24.135
$31,080
1,691
$ 80,818
24,135
1,691
Totals $ 73.873 $ 32.771 $106,644
29
TOWN OF SUNSET, LOUISL\NA
Notes to Basic Financial Statements (Continued)
(10) Changes in Long-Term Debt
The following is a summary of long-term debt transactions of the Town for the year ended June 30,2010:
Business-type Activities
Long-term debt payable, July 1, 2009 Long-term debt issued Long-term debt retired
Long-term debt payable, June 30, 2010
Long-term debt payable at June 30, 2010 is comprised ofthe following:
Revenue bonds -
$410,000 1995 Sewer Utility Revenue Bond, dated Febmary 17, 1995; due in monthly installments of $2,681 through Febmary 2015; interest at 4.5 percent; secured by Utility Fund revenues $ 132 241
Revenue Bonds
$ 157,838
(25,597)
$ 132,241
The long-term debt is due as follows:
Year ending June 30,
2011
2012
2013
2014
2015
Total
Business-type Activities Principal payments
26,773 28,003 29,289 30,635 17,541
$ 132,241
Interest payments
5,404 4,174 2,887 1,542
247
$ 14,254
30
TOWN OF SUNSET, LOUISLANA
Notes to Basic Financial Statements (Continued)
(11) Flow of Funds: Restrictions on Use - Utilities Revenues
Utility Revenue Bonds:
Under the terms ofthe Bond indenture on outstanding Public Utility Bonds dated Febmary 17, 1995, all income and revenues (hereinafter referred to as revenue) of every nature, eamed or derived from operation of the Utility System, are pledged and dedicated to the retirement of said bonds, and are to be set aside into the following special funds:
Each month, there will be set aside into a fund called the "Bond and Interest Sinking Fund" the amount of $2,681 each month. Such transfers shall be fully sufficient to assure the prompt payment of principal and interest installments as they become due and may be used only for such payments.
There shall also be set aside into a "Bond Reserve Fund" the amount of $135 each month until the amount of $32,177 has been accumulated therein. Such amounts may be used only for the payment of maturing bonds and interest coupons for which sufficient fiinds are not on deposit in the Bond and Interest Sinking Fund and as to which there would otherwise be default.
Funds will also be set aside into a "Contingency Fund" at the rate of $243 each month. Money in this fund may be used for the making of extraordinary repairs or replacements to the system which are necessary to keep the system in operating condition and for which money is not available as a maintenance and operation expense. Money in this fiind may also be used to pay principal or interest on the bonds falling due at any time there is not sufficient money for payment in the other bond funds.
All ofthe revenues received in any fiscal year and not required to be paid in such fiscal year into any of the above noted funds shall be regarded as surplus and may be used for any lawful corporate purpose.
The Town of Sunset was in compliance with all significant limitations and restrictions in the bond indentures at June 30, 2010.
31
TOWN OF SUNSET, LOUISIANA
Notes to Basic Financial Statements (Continued)
(12) Emplovee Retirement
All employees are members of one ofthe following retirement systems:
Federal Social Security System Municipal Employees' Retirement System of Louisiana
Municipal Police Employees' Retirement System of Louisiana
Pertinent information relative to each plan follows:
A. Federal Social Security System All employees of the Tovm of Sunset are members of the Federal Social
Security System. The Town and its employees contribute a percentage of each employee's salary to the System (7.65% contributed by the Town; 7,65% by the employee). Total covered wages for the year ended June 30, 2010 was $701,315. The Town's contribution during the year ended June 30, 2010 amounted to $43,482.
B. Municipal Employees' Retirement Svstem of Louisiana System
Eligible employees of the Town participate in the Municipal Employees' Retirement System, which is a cost-sharing, multiple-employer defined benefit public employee retirement system. The plan is controlled and administered by a separate board of tmstees. Pertinent information relative to the plan follows:
Plan Description - The System is composed of two distinct plans. Plan A and Plan B, with separate assets and benefit provisions. All employees of the municipality are members of Plan A.
All permanent employees working at least 35 hours per week who are not covered by another pension plan and are paid wholly or in part from municipal fiinds and all elected municipal officials are eligible to participate in the System. Under Plan A, employees who retire at or after age 60 with at least 10 years of creditable service, at or after age 55 with at least 25 years of creditable service, or at any age with at least 30 years of creditable service are entitled to a retirement benefit, payable monthly for life, equal to 3% of their final-average salary for each year of creditable service. Furthermore, employees with at least 10 years of creditable service, but less than 30 years, may take early retirement benefits commencing at or after age 60, with the basic benefit reduced 3% for each year retirement precedes age 62, unless he has at least 30 years of creditable service. Final-average salary is the employee's average salary over the 36 consecutive or joined months that produce the highest average. Employees who terminate with at least the amount of creditable service stated above, and do not withdraw their employee contributions, may retire at the ages specified above and receive the benefit accmed to their date of termination. The System also provides death and disability benefits. Benefits are established or amended by state statute.
32
TOWN OF SUNSET. LOUISIANA
Notes to Basic Financial Statements (Continued)
The system issues an annual publicly available fmancial report that includes financial statements and required supplementary information for the System. That report may be obtained by writing to the Municipal Employees' Retirement System of Louisiana, 7937 Office Park Boulevard, Baton Rouge, Louisiana 70809 or by calling (504) 925-4810.
Funding policy - Under Plan A, members are required by state statute to contribute 9.25% of their annual covered salary and the Tovm is required to contribute at an actuarially determined rate. The current rate is 13.50% of annual covered payroll. Contributions to the System also include one-fourth of 1% (except Orleans and East Baton Rouge parishes) of the taxes shown to be collectible by the tax rolls of each parish. These tax dollars are divided between Plan A and Plan B based proportionately on the salaries of the active members of each plan. The contribution requirements of plan members and the Town are established and may be amended by state statute. As provided by R.S. 11:103, the employer contributions are determined by actuarial valuation and are subject to change each year based on the results ofthe valuation for the prior fiscal year. The Town's contributions to the System under Plan A for the years ending June 30, 2010, 2009, and 2008 were $30,638, $20,748, and $22,817 respectively, equal to the required contributions for each year.
Municipal Police Employees' Retirement System of Louisiana (Svstem)
Eligible employees of the Town participate in the Municipal Police Employees' Retirement System, which is a cost-sharing, multiple-employer defined benefit public employee retirement system. The plan is controlled and administered by a separate board of tmstees. Pertinent information relative to the plan follows:
Plan description - All fiill-time police department employees engaged in law enforcement are required to participate in the System. Employees who retire at or after age 50 with at least 20 years of creditable service or at or after age 55 with at least 12 years of creditable service are entitled to a retirement benefit, payable monthly for life, equal to 3 1/3% of their final-average salary for each year of creditable service. Final-average salary is the employee's average salary over the 36 consecutive or joined months that produce the highest average. Employees who terminate with at least the amount of creditable service stated above, and do not withdraw their employee contributions, may retire at the ages specified above and receive the benefit accmed to their date of termination. The System also provides death and disability benefits. Benefits are established or amended by state statute.
The System issues an annual publicly available financial report that includes financial statements and required supplementary information for the System, That report may be obtained by writing to the Municipal Police Employees' Retirement System, 8401 United Plaza Boulevard, Room 270, Baton Rouge, Louisiana 70809-7017.
33
TOWN OF SUNSET, LOUISIANA
Notes to Basic Financial Statements (Continued)
Funding Policy - Plan members are required by state statute to contribute 7.5% of their armuai covered salary and the Tovm is required to contribute at an actuarially determined rate. The current rate is 13.5% of annual covered payroll. The contribution requirements of plan members and the Town are established and may be amended by state statute. As provided by R.S, 11:103, the employer contributions are determined by actuarial valuation and are subject to change each year based on the results of the valuation for the prior fiscal year. The contributions to the System for the years ending June 2010, 2009, and 2008 were $2,569, $2,161, and $2,998 respectively, equal to the required contributions for each year.
(13) Segment Information for the Enterprise Fund
The Tovm of Sunset maintains one enterprise fund with three departments which provide water, sewerage and gas services. Segment information for the year ended June 30, 2010, was as follows:
Operating revenues
Operating expenses: Depreciation Other
Total operating expenses
Operating income
Compensation of Town Officials
Water Department
$ 241,952
42,115 180,573
222,688
$ 19,264
Sewerage Department
$ 147,703
37,857 98,532
136,389
$ 11,314
Gas Depaitinent
$ 287,584
12,542 202,275
214,817
$ 72,767
Total Enterprise
Fund
$ 677.239
92,514 481,380
573,894
$ 103,345
A detail of compensation paid to the Mayor and Board of Aldermen for the year ended June 30, 2010 follows:
Cecil Lavergne, Mayor
Aldermen: Dalton Belson Melanie White Charles James Bemice Smith Joseph Meche
$ 10,800
6,000 6,000 6,000 6,000 6.000
$ 40.800
34
TOWN OF SUNSET, LOUISIANA
Notes to Basic Financial Statements (Continued)
(15) Pending Litigation
The Town is a defendant in various claims and lawsuits claiming damages. Management and legal counsel is of the opinion that monetary damages would be minimal, if any, in excess of insurance coverage.
(16) Risk Management
The Town is exposed to risks of loss in the areas of health care, general and auto liability, property hazards and workers' compensation. All of these risks are handled by "purchasing commercial insurance coverage. There have been no significant reductions in the insurance coverage during the year.
(17) Interfund Transactions
A. Receivables and Payables
Due to the General Fund from the Utility Fund for reimbursement for expenditures paid $ 21,266
B. Transfers
Transfers In Transfers Out Major govemmental fiinds:
General Fund Sales Tax Special Revenue Fund
Proprietary Fund: Enterprise Fund
Total
Transfers are used to (a) move revenues from the fiind that statute or budget requires to collect them to the fund that statute or budget requires to expend them and to (b) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetaiy authorizations.
$ 637,872
$ 637,872
$ -504,472
133,400
$637,872
35
TOWN OF SUNSET, LOUISL\NA
Notes to Basic Financial Statements (Continued)
(18) Subsequent Event Review
The Town's management has evaluated subsequent events through November 9, 2010, the date which the financial statements were available to be issued.
(19) New Accounting Pronouncements
The Govemmental Accounting Standards Board (GASB) issued Statement 54 "Fund Balance Reporting and Govemmental Fund Type Definitions." The Tovm is required to implement this standard for the fiscal year ended June 30, 2011. The Tovm has not yet determined the fiill impact that adoption of GASB Statement 54 will have on the financial statements.
36
REQUIRED SUPPLEMENTARY INFORMATION
37
TOWN OF SUNSET, LOUISLVNA General Fund
Budgetary Comparison Schedule For the Year Ended June 30,2010
Net change in fund balance
Fund balance, begiiming
Fund balance, ending
Budget
Original Final Actual
Variance with Final Budget
Positive (Negative)
Revenues: Taxes Licenses and permits Intergovemmental Fines and forfeits Miscellaneous
Total revenues
Expenditures: Current -
General govemment Public safety:
Police Fire
Streets Capital outlay
Total expenditures
Deficiency of revenues over expenditures
Other financing sources: Transfer from Utility Fund
Transfer from Sales Tax Fund
Total other financing sources
$ 258,000 91,000 71,000
255,000 53,000
728,000
318,000
531,000 43,500
200.000 99,000
1,191,500
(463,500)
90,000
384,000
474,000
$ 235,000 94,000
110,000 164,000 59,000
662,000
360,000
618,000 40,000
174,000 61,000
1,253,000
(591,000)
120,000
430,000
550,000
$ 240,196 112,260 178,204 173,922 104,449
809,031
369,720
560,031 29,248
193,798 140,960
1,293,757
(484,726)
133,400
504,472
637,872
$ 5,196 18,260 68,204
9,922 45,449
147,031
(9,720)
57,969 10,752
(19,798) (79,960)
(40,757)
106,274
13,400
74,472
87,872
10,500 (41,000) 153,146 194,146
215,731 215,731 215.731
$ 226.231 $ 174,731 $ 368,877 $194,146
38
TOWN OF SUNSET, LOUISLVNA
Sales Tax Special Revenue Fund
Budgetary Comparison Schedule
For the Year Ended June 30, 2010
Revenues:
Taxes
Miscellaneous - interest
Total revenues
Expenditures:
Current -
General govemment:
Sales tax collection fees
Miscellaneous
Total expenditures
Excess of revenues
over expenditures
Other fmancing uses:
Transfer to General Fund
Net change in fund balance
Fund balance, beginning
Fund balance, ending
Budget
Original
$447,000
447.000
Final
$503,000
503,000
Actual
$498,358 398
498,756
Variance with
Final Budget
Positive
(Negative)
$ (4,642) 398
(4,244)
2,000
1,000
3,000
2.000
LOOO
4,917
21
3,000 4,938
444,000 500,000 493,818
(2.917)
979
(U938)
(6,182)
(384,000) (430,000) (504,472) (74,472)
60,000 70,000 (10,654) (80,654)
81,630 81,630 81,630
$141,630 $151,630 $ 70,976 $(80.654)
39
OTHER SUPPLEMENTARY INFORMATION
40
TOWN OF SUNSET, LOUISLVNA General Fund
Budgetary Comparison Schedule - Revenues For the Year Ended June 30, 2010
Taxes: Ad valorem taxes Franchise - electric Franchise - telephone Franchise - cable
Licenses and permits: Licenses Building permits House moving and plumbing permits
Intergovemmental: State of Louisiana-
Racino revenue Beer taxes Fire insurance rebate Grass cutting State grant St. Landry parish solid waste district
Federal Housing Authority
Fines and forfeits:
Fines and court costs
Miscellaneous: Insurance reimbursement First response donations Miscellaneous
Total revenues
Budget Original
$100,000 150,000
5,000 3,000
258,000
88,000 3,000 -
91,000
45,000 5,000 9,000 7,000 -
--
5,000
71,000
255,000
25,000 3,000
25,000
53,000
$728,000
Final
$108,000 120,000
5,000 2,000
235.000
90.000 4,000
-
94,000
40,000 6,000 9,000 7,000
26,000 --
22,000
110,000
164,000
30.000 3.000
26,000
59,000
$662,000
Actual
$109,748 123,832
5,054 1,562
240,196
107,907 4.233
120
112.260
44.565 6.687 8.126 6,792 9,630 3,850
98,554 -
178,204
173,922
8,260 3,518
92,671
104,449
$809,031
Variance with Final Budget
Positive (Negative)
$ 1,748 3,832
54 (438)
5.196
17.907 233 120
18,260
4,565 687
(874) (208)
(16.370) 3,850
98,554 (22,000)
68,204
9,922
(21,740) 518
66,671
45,449
$ 147.031
41
TOWN OF SUNSET, LOUISIANA General Fund
Budgetary Comparison Schedule - Expenditures For the Year Ended June 30, 2010
General govemment: Salaries - mayor and council Other salaries Payroll taxes Retirement Office supplies and postage Insurance Telephone and electricity Travel, seminars, and conventions Advertising, dues, and publications Repairs and maintenance Preparation of tax roll Consulting Legal and accounting Coroner's expense Miscellaneous
Total general govemment
Public safety: Police department -
Salaries Payroll taxes Retirement Office supplies and postage Uniforms Materials and repairs Insurance Telephone and electricity Prisoner meals Auto Miscellaneous Gasoline Crime lab Dmg testing Conventions and conferences
Total police department
Budget Original
$ 45.000 95,000
8,000 10,000 17,000 60.000 13.000 9.000 4.000 4,000 3,000 2.000
34.000 2,000
12,000
318,000
335,000 26,000 4,000
14,000 2,000 8,000
90,000 11,000 2,000 8,000 5,000
18.000 3,000 2.000 3,000
531,000
Final
$41,000 109,000
8,000 10,000 18,000 68,000 20,000 16,000 8,000
14,000 2,000 -
29.000 2,000
15,000
360,000
397,000 34,000 4.000
15,000 1,000 6,000
115,000 9,000 1,000 8,000 6,000
17,000 2,000 2,000 1,000
618,000
Actual
$ 40,800 100,379
3.918 13.770 23.047 78,733 11,351 15,343 12.647 2.718 1.993 -
29,361 400
35,260
369,720
393.673 38.937 2,569
17.510 663
1.832 61.592
7,333 617
8.115 8,789
14,791 1,550 1,280
780
560.031
Variance with Final Budget
Positive (Negative)
$ 200 8,621 4,082
(3,770) (5.047)
(10,733) 8,649
657 (4,647) 11.282
7 -(361)
1,600 (20,260)
(9,720)
3,327 (4.937) 1,431
(2,510) 337
4,168 53.408
1,667 383
(115) (2.789) 2,209
450 720 220
57,969
(continued)
42
TOWN OF SUNSET. LOUISIANA General Fund
Budgetary Comparison Schedule - Expenditures (Continued) For the Year Ended June 30. 2010
Public safety: Fire department -
Salaries Payroll taxes Supplies and repairs Auto Office expense Insurance Telephone and electricity Miscellaneous Gasoline
Total fire department
Streets: Salaries Payroll taxes Retirement Materials and supplies Uniforms Repairs and maintenance Miscellaneous Shell, gravel, dirt and hot mix Electricity Contract labor Grass cutting Insurance Tractor and backhoe Gasoline and diesel Animal control Welding Station Tmck
Total streets
Budget Original
2,392 208
5,400 3.000 -
24,000 5,000 2,000 1,500
Final
6,440 560
2,000 1.000 -
22,000 5,000 2,000 1,000
Actual
7,827 581
2,120 969 184
9,608 5,248 2,255
456
Variance with Final Budget
Positive (Negative)
(1,387) (21)
(120) 31
(184) 12,392
(248) (255) 544
43,500
50,000 4,000 4,000 5,000 2,000
10,000 5.000 6,000
42,000
45.000 10.000 15.000 2.000
200,000
40,000
38,000 3,000 4,000 7,000
5,000 3,000 9,000
40,000 4.000
46.000 3.000
11.000 1.000
29,248
72,565 8,617 6,474 6,769
214 3.039 1,189 7,563
31,709 3,849
310 37,673
3,262 3,933
123 530
5,022 957
174,000 193,798
10,752
(34,565) (5,617) (2,474)
231 (214)
1,961 1.811 1,437 8,291
151 (310)
8,327 (262)
7,067 877
(530) (5,022)
(957) (19,798)
(continued)
43
TOWN OF SUNSET, LOUISLVNA General Fund
Budgetary Comparison Schedule - Expenditures (Continued) For the Year Ended June 30,2010
Capital outlay: General govemment -
Buildings Public safety -
Police - equipment Street department
Total capital outlay
Total expenditures
Budget Original Final
15,000 84,000
37,000
24,000
99,000 61,000
Actual
114,484
26,476
140,960
Variance with Final Budget
Positive (Negative)
(77,484)
(2.476)
(79,960)
$1,191,500 $1,253,000 $1,293,757 $ (40,757)
44
TOWN OF SUNSET, LOUISLVNA Enterprise Fund
Utility Fund
Departmental Analysis of Revenues and Expenses For the Year Ended June 30, 2010
Total Gas Water Sewer Operating revenues:
Customer service charges Miscellaneous
Total operating revenues
Operating expenses: Salaries Payroll taxes Retirement Gas purchases Maintenance and repairs Telephone and electricity Legal and accounting fees Engineering fees Insurance Office expense Auto expense Supplies and parts Meter reading expense Survey and analysis Depreciation Miscellaneous
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses): Interest income Interest expense
Total nonoperating revenues (expenses)
Income before contributions and transfers
Transfers out
Change in net assets
Net assets, beginning
Net assets, ending
$ 648.797 28.442
677.239
75.290 2,755
10,394 101,888 49,433 47,158
1,560 9,072
46,395 10.580 11.100 52.689 18.428 10.545 92,514 34,093
573,894
103,345
581 (6,480)
(5,899)
97,446
(133,400)
(35,954)
981,330
$ 945,376
$283,934 3,650
287,584
26,401 1,485 1,869
101,888 29,712
304 112
-
3,362 3,397 1,274 9,805 8,426 5,625
12,542 8,615
214.817
$ 72.767
$221,319 20.633
241,952
24.348 574
4.760 -
1,678 28,478
-
8,291 34,383
7,183 3,110
34,478 10,002 1,500
42,115 21.788
222,688
$ 19,264
$143,544 4.159
147.703
24,541 696
3,765 -
18,043 18,376 1,448
781 8,650 -
6,716 8,406 -
3,420 37,857 3,690
136,389
$ 11,314
45
TOWN OF SUNSET, LOUISLVNA
Comparative Statement of Revenues. Expenses, and Changes in Fund Net Assets Proprietary Fund
For the Years Ended June 30, 2010 and 2009
2010 2009 Operating revenues:
Charges for services -Gas sales Water sales Sewer charges
Miscellaneous
Total operating revenues
Operating expenses: Gas department Water department Sewer department
Total operating expenses
Operating income
Nonoperating revenues (expenses): Interest income Interest expense
Total nonoperating revenues (expenses)
Income before transfers
Transfers out
Change in net assets
$ 283,934
221,319
143,544
28,442
677,239
214,817
222,688
136,389
573,894
103,345
581 (6,480)
(5,899)
97,446
(133,400)
$ 263,095
208,274
136,510
41,344
649,223
229,221
200,694
194,281
624,196
25,027
780 (7,703)
(6.923)
18.104
(93,297)
(35.954) (75,193)
Net assets, beginning
Net assets, ending
981,330 1.056,523
$ 945.376 $ 981,330
46
TOWN OF SUNSET, LOUISIANA Enterprise Fund
Utility Fund
Schedule ofNumber of Utility Customers (Unaudited)
June 30, 2010
Records maintained by the Tovm indicated the following number of customers were being serviced during the month of June 2010:
Number of Customers Type Gas Water Sewer
Commercial 23 62 33 Residential 410 1,093 959
47
TOWN OF SUNSET, LOUISIANA Enterprise Fund
Utility Fund
Schedule of Utility Rates (Unaudited)
June 30, 2010
Records maintained by the Town indicated the following utility rates were being charged to customers during the fiscal year ended June 30,2010:
Service
Water Sewer - commercial Sewer - residential Gas
Base Rate
$10,0-2000 gallons $10, 0-3000 gallons $6.50, 0-2000 gallons $11.88, 0-500 cubic feet
Additional Charges
.14 cents per gallon thereafter $1.25 per 1000 gallons thereafter $1.25 per 1000 gallons thereafter $1.25 per cubic feet thereafter
Note: Commercial and residential rates were the same for water and gas.
48
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INTERNAL CONTROL
AND
COMPLLVNCE
51
C, Bunon Kolder. CPA* Rimdl F. ChimptgM. CPA* Vicior R. SItven, (H'A* P. Troy Courville, CPA' GOTW A. TTiibodem*. Jr.CPA* Roben S- Caner, CPA* Anhur R Mixon, CPA*
TyneiE Mixon. Jr., CPA Alien J, LaBry. CPA Albwt R. Leger. CPA.PFS.CSA* Penny Angollo ScnJ0S»n8. CPA Christirw L Cousin. CPA Mary T. Thitxxteaux, CPA Marahall W. GiicJry. CPA Alan M. Teytor. CPA Jameo R. Roy, CPA RObett J. Metz, CPA KoJIy M. Doocel. CPA Cheryt L. Bartley. CPA Mandy B Self, CPA Paul L Delcambre. Jr. CPA Wanda F. Arcement. CPA, CVA Kristin B. Dauzat. CPA Richard R. Anderson ST., CPA Carofyn C. Anderson. CPA
KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTAhTTS
Retired: Conrad 0. Chapman, CPA' 2006 Harry J. Clostio. CPA 2007
* A Pnrfnsional Accoufttbig CorporaUon
OFFICES
183SotithBe8dteRd. Lafayette. LA 70508 Phooe (337) 232-4141 Fax (337) 232-B660
113 East BrrdQeSL Breaux Bridge. LA 70517 Phone (337) 332-4020 Fax (337) 332-2867
1234 David Dr. Ste 203 (*»roan City. LA 70380 Phone (965) 364-2020 Fax (965) 384-3020
408 Wast Cotton Street ViDe Platte. LA 70586 Phooe (337) 363-2792 Fax (337) 363-3049
332 West Sixth Avenue Oberlffi. LA 70655 Phooe (337) 639-4737 Fax(337)i
450 East htoin Street New ttwrta, LA 70560
Phooe (337) 367-9204 Fax (337) 367-9208
200 South Main Street Abbeville. U 70510
Phone (337) 893-7944 Fax (337) 893-7946
1013 Main Street Franklin, LA 70538
Phone (337) 8 2 6 ^ 7 2 Fax (337) 826-0290
133 East WadcflSL htertwviile LA 71351
Phooe (318) 253-9252 Fax (318) 253-8681
621 Main Street Pneville, LA 71360
Phooe (318) 442-4421 Fax (316) 442-9833
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCL\L STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
WEBsrrt www, KCSRCPAS.COM
The Honorable Cecil Lavergne, Mayor and Members ofthe Board of Aldermen
Town of Sunset, Louisiana
We have audited the fmancial statements of the govemmental activities, the business-type activities, each major fund, and the aggregate remainmg fund information ofthe TOVVTI of Sunset, Louisiana (the Town) as of and for the year ended June 30, 2010, which collectively comprise the Town's basic financial statements and have issued our report thereon dated November 9, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards issued by the Comptroller General ofthe United States.
Intemal Control Over Financial Reporting
In planning and perfonning our audit, we considered the Town's intemal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's intemal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Town's intemal control over financial reporting.
A deficiency in intemal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in intemal control such that there is a reasonable possibility that a material misstatement ofthe entity's financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of intemal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in intemal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in intemal control over financial reporting that we consider to be material weaknesses, as defined above.
Member of. AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 52
Member of: SOCIETY OF LOUISIANA
CERTIFIED PUBLIC ACCOUNTANTS
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Govemment Auditing Standards.
This report is intended solely for the mformation of management and is not intended to be and should not be used by anyone other than these specified parties. However, under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.
Kolder, Champagne, Slaven & Company, LLC Certified Public Accountants
Lafayette, Louisiana November 9,2010
53
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