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Town of Farmerville Farmerville ^^^ TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA RFPORTONAUDITOF BASIC FINANCIAT STATEMENTS YEAR ENDED niNF.m 2011 AND 2010 Underprovisionsofstafelaw this report is a public document A copy of the report has been submitted to the entity and ottier appropnate public officials The report is available for public inspection at the Baton Rouge office of the LegislativeAuditor and where appropriate, at the office of the parish clerk of court Release Date MAR 1 8 2012 TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA ANNUAL FINANCIAL REPORT RJNE30, 2011 TABLE OF CONTENTS PAGE REQUIRED SUPPLEMENTAL INFORMATION (PART I) Management's Discussion and Analysis A - E FINANCIAL SECTION Independent Auditors' Report I - II BASIC FINANCIAL STATEMENTS GOVERNMENT - WIDE FINANCIAL STATEMENTS EXHIBIT A Statements of Net Assets 1 EXHIBIT B Statements of Activities 2 FUND FINANCIAL STATEMENTS EXHIBIT C Balance Sheets - Governmental Funds 3 EXHIBIT C - 1 Reconciliation ofthe Balance Sheets to the Statement of Net Assets - Governmental Funds 4 EXHIBIT D Statements of Revenues, Expenditures and Changes m Fund Balance - Governmental Funds 5 EXHIBIT D - I Reconciliation ofthe Statements of Revenues, Expenditures and Changes m Fund Balance of Governmental Funds to the Statements of Activities 6 PROPRIETARY FUND STATEMENTS EXHIBIT E Statements of Fund Net Assets - Proprietary Funds 7 - 8 EXHIBIT F Statements of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds 9-10 EXHIBIT G Statements of Cash Flows - Proprietary Funds 11-12 NOTES TO FINANCIAL STATEMENTS 13-35 REQUIRED SUPPLEMENTAL INFORMATION (PART II) STATEMENT A General Fund - Statements of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP) and Actual 36 TOWN OF FARMERVILLE FARMERVILLE LOUISIANA ANNUAL FINANCIAL REPORT JUNE 30, 2011 TABLE OF CONTENTS STATEMENT B Special Revenues - Sales Tax Fund - Schedules of Revenues, Expenditures and Changes m Fund Balances - Budget (GAAP) and Actual 37 - 38 STATEMENT B-1 Special Revenues - 2002 Sales Tax Fund - Recreation Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP) and Actual 39 STATEMENT C Enterprise Funds - Statements of Revenues, Expenses, and Changes in Retained Earnings - Budget (GAAP) and Actual 40 STATEMENT C-l Enterprise Funds - Schedule of Detail of Expenses, Budget (GAAP) and Actual 41 OTHER SUPPLEMENTAL INFORMATION ( PART Iin SCHEDULE A Combining Balance Sheets - Special Revenue Funds 42 SCHEDULE B Combining Statements of Revenue Expenditures and Changes in Fund Balances - Special Revenue Funds 43 SCHEDULE C Balance Sheets - Capital Projects Fund 44 SCHEDULE D Statements of Revenues, Expenditures and Changes in Fund Balances - Capital Projects Fund 45 SCHEDULE E Combining Balance Sheets - Debt Service Funds 46 SCHEDULE F Combining Statements of Revenues, Expenditures and Changes in Fund Balance - Debt Service Funds 47 SCHEDULE G Schedule of Insurance in Force 48 SCHEDULE H Cash Accounts and Investments 49 Report on Intemal Control over Fmancial Reportmg and on Compliance and Other Matters Based On an Audit of Financial Statements Performed in Accordance with Govemment AudiUng Standards 50-51 PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS 52 - 59 CURRENT YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS 60 - 69 MANAGEMENT'S DISCUSSION AND ANALYSIS Town of Farmerville, Louisiana Management's Discussion and Analysis June 30, 2011 The management ofthe Town of FarmerviUe, Louisiana offers readers ofthe Town of Farmerville, Louisiana's (Town) financial statements this narrative overview an analysis ofthe financial activities ofthe Town for the fiscal year ended June 30,2011 Management discussion and analysis is designed to provide an objective analysis ofthe Town's financial activines based on currently known facts, decisions, or conditions Overview ofthe Financial Statements The Town's basic financial statements consist ofthe govemment-wide financial statements, fimd financial statements, and notes to the financial statements This report also contains other supplementary information, which is in addnion to the basic financiai statements Govemment-Wide Financial Statements The statement of net assets presents information on all ofthe Town's assets and liabilities, with the difference between the two reported as net assets The statement of acnvities shows how the government's net assets changed dunng this fiscal year All changes in net assets are reported as soon as the underlying event occurs regardless ofthe timing ofthe related cash flows Each of these reports is broken down between governmental activiUes and busmess-type activities Governmental achvities normally are those activities that are supported by taxes, licenses, permits, fines and intergovernmental revenues for example, the police and fire departments Business-type activities are fimctions that are intended to support their costs through charges for services or fees such as the water and sewer departments Fund Financial Statements The Town of FarmerviUe, Louisiana maintains four individual govemmental funds. General Govemment, Special Revenue, Debt Service, and Capital Projects Information is presented separately in the govemmental fimd balance sheet and in the govemmental fund statement of revenues, expenditures, and changes in fund balances for the general fimd which is considered to be a major fund The Tovm adopts an annual budget for its general fund A statement of revenues, expenditures and changes in fxmd balance IS presented on Statement A which compares actual revenues and expenditures to the onginal budget and amended budget figures The original budget was adopted on June 11, 2010 and it was amended on June 11, 2011 The Town operates one proprietary fund The Town uses an enterprise fund to account for its water and sewer disposal operations This enterpnse fund reports the same functions presented as business-type activities in the govemment-wide financial statements The notes to the financial statements have additional information presented that is essential to a full understanding ofthe data provided in the government-wide financial statements The notes are found on pages 13-35 Govemment-wide Financial Analysis Overall, the Town's financial posinon and results of its operation improved in fiscal 2011 The largest percentage ofthe total assets (76%) is the Town's investment in net capital assets The Town has outstanding debt of S3 223 352 in 2011 and $2,980,000 00 in 2010, which was used to finance someofthe$137,742,48lin2011and$12,984,725in2010capital assets (For more detailed information on the Town's debt and capital assets, see pages 26 - 27 ) The total liabilities of $ 4,109,950 in2011 and $3,597,263 in 2010 are 23% in 2011 and 21% in 2010 of the total assets The following table reflects the condensed statement of net assets at June 30, 2011 Govemmental Business-Type Total Activities Activities Assets Current Assets $ 1,410,611 34 $ 534,050 95 $1,944,662 29 Non-current Assets 8071677 21 8155526 69 16227203 9 Total Assets $9,482,288 55 $ 8.689,577 64 $18,171,866 19 Liabihnes Current Liabilities $ 721,864 78 $ 343,767 25 $ 1,065,632 03 Non-current Liabilities 2659318 45 385000 3044318 45 Total Liabilities $ 3,381,183 23 $ 728,767 25 $4,109,950 48 Net Assets $ 6.101,105 32 $ 7,960,810 39 $14,061,915 71 Invested in Capital Assets, Net of Related Debt $ 3,460,285 20 $7,434,322 29 $10,894,607 49 Restncted 1773039 09 526677 64 2299716 73 Unrestricted 867781 03 -189 54 867591 49 Total Net Assets $6,101,105 32 $7,960,810 39 $14,061,915 71 The Town's govemmental activities increased the net assets by $293,362 The total change in business-type activiUes increased the Town's assets by $117,483 Below is a summary ofthe statement of activities Govemmental Business-Type Activities Activities Total Revenues Program Revenues $ 638.143 12 $ 1.565.855 92 $ 2,203.999 04 I General Revenues 2788168 37 23333 39 281150176 1 Total Revenues S 3,426,31149 $ 1.589,189 31 $ 5,015,500 80 1 Expenses General and Administrative $ 686,608 64 $ 00 $ 686.608 64 1 Public Safety 1063093 41 0 1063093 41 Public Services 942290 87 0 942290 87 Culture and Recreation 292663 21 0 292663 2 J Capital Proiects 23139 89 0 23139 89 Water & Sewer 0 1471706 58 1471706 58 Interest on Lone-Term Debt 125153 35 0 125153 35 Total Expenses $ 3.132,949 37 $ 1.471,706 58 $ 4.604.655 95 1 "•" Increases (Decreases) in Net Assets S 293,362 12 $ 117,482 73 S 410.844 85 , NetAssets-July 1,2010 5807743 2 7843327 66 13651070 86 Net Assets-June 30, 2011 $ 6,101,105 32 $ 7,960,810 39 $ 14,061,915 71 -B- PROGRAM REVENUES • General Government Culture and Recreation • Public Safety • Water Public Services Sewer Capital Projects Program Revenues are Broken Down By: General Government $ .00 Public Safety 129,004.67 Public Services 405,922.05 Culture and Recreation .00 Water 1,207,189.44 Sewer 358,666.48 Capital Projects 103,216.40 Total Program Revenues $ 2,203,999.04 -C- GENERAL REVENUES 48.79% Property Taxes Sales Taxes Franchise Taxes Alcoholic Beverage Tax Occupational Licenses Other Licenses & Taxes Investment Earnings Mineral Lease Miscellaneous Transfers Video Bingo Sales of Assets Intergovernment Revenue General Revenues Consist ofthe Following: Property Taxes $ 705,949.24 Sales Taxes 1,371,698.75 Franchise Taxes 184,065.41 Alcoholic Beverage Tax 7,097.00 Occupational Licenses 175,729.86 Other Licenses & Taxes 1,541.00 Video Bingo 68,763.42 Investment Earnings 67,814.50 Intergovernment Revenue 24,837.89 Miscellaneous 60,776.84 Mineral Lease 47,901.60 Sales of Assets 1,426.25
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