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TOWN OF FARMERVILLE pA,PT.4ppvnTP,T.QUISlANA
pppoRTONAUDITOF XK«9.\C. FFNANCT AT STATEMENTS
YEAR ENDED nTNE30.20l3
Under provisions of state law, this report is a public document. Acopy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the LegislativeAuditor and, where appropriate, at the office of the parish cleric of court.
Release Date ^^^ 1 9 2014 TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA ANNUAL FINANCIAL REPORT JUNE 30.2013
TABLE OF CONTENTS
PAGE FINANCIAL SECTION
Independent Auditors' Report I - II
REQUIRED SUPPLEMENTAL INFORMATION (PART D
Management's Discussion and Analysis A - F
BASIC FINANCL\L STATEMENTS
GOVERNMENT - WIDE FINANCIAL STATEMENTS
EXHIBIT A Statement of Net Position 1
EXHIBIT B Statement of Activities 2
FUND FINANCIAL STATEMENTS
EXHIBIT C Balance Sheets - Govemmental Funds 3
EXHTOIT C -1 Reconciliation ofthe Balance Sheet to the Statement of Net Position - Govenunental Funds 4
EXHIBIT D Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds S
EXHIBIT D -1 Reconciliation ofthe Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 6
PROPRIETARY FUND STATEMENTS
EXHIBIT E Statement ofFund Net Position-Proprietaiy Funds 7-8
EXHIBIT F Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds 9-10
EXHIBIT G Statement of Cash Flows - Proprietary Funds 11-12
NOTES TO FINANCL\L STATEMENTS I3.4O
REQUIRED SUPPLEMENTAL INFORMATION (PART IH
STATEMENT A General Fund - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP) and Actual 41 STATEMENT A-l, Fire Department - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP) and Actual 42
STATEMENT A-2 Police Department - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP) and Actual 43
STATEMENT B Special Revenues - Sales Tax Fund - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP) and Actual 44 - 45
STATEMENT C Other Poslcmployment Benefits(OPEB) Schedule of Funding Progress 46 TOWN OF FARMERVILLE FARMERVILLE LOUISIANA ANNUAL FINANCIAL REPORT JUNE 30.2013
TABLE OF CONTENTS
PAGE OTHER SUPPLEMENTAL INFORMATION (PART III)
SCHEDULE A Enterprise Funds - Statement of Revenues, Expenses, and Changes in Retained
Earnings - Budget (GAAP) and Actual 47
SCHEDULE A-t Enterprise Funds - Schedule of Detail of Expenses, Budget (GAAP) and Actual 48
MAJOR GOVERNMENTAL FUNDS - DETAIL SCHEDULE B Combining Balance Sheet - Govemmental Funds 49
SCHEDULE B-1 Combining Statement of Revenue Expenditures and Changes in Fund Balances- Governmental Funds 50-51
NON-MAJOR FUNDS - BALANCE SHEETS
SCHEDULE C Non-Major Govemmental Funds - Special Revenue Funds 52
SCHEDULE C-1 Non-Major Govemmental Funds - Capital Projects Funds 53
SCHEDULE C-2 Non-Major Govemmental Fund - Debt Service Funds 54
SCHEDULE C-3 Non-Major Govemmental Funds - Total 55
NON-MAJOR FUNDS - STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
' SCHEDULE D Non-Major Funds - Special Revenue Funds 56
SCHEDULE D-1 Non-Major (jovemmental Funds -Capital Projects Fund 57
SCHEDULE D-2 Non-Major Govemmental - Debt Service Funds 58
SCHEDULE D-3 Non-Major Govermnental Funds - Total 59
SCHEDULE E Schedule of Insurance in Force 60
SCHEDULE F Cash Accounts and Investments 61-62
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLLWCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCL\L STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS AND THE AGGREGATE REMAINING FUND INFORMATION 63-64
PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS 65 - 76
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 77 - 80
LOUISIANA LEGISLATIVE AUDITORS' REPORT ON INTERNAL CONTROL DEFICIENCIES AND COMPLIANCE ISSUES 81 GARRETT & GARRETT CERTIFIED PUBLIC ACCOUNTANTS 119 PROFESSIONAL DRIVE WEST MONROE, LOUISIANA 71291
CAROLYN V. GARRETT PHONE: 318 322-0845 JUDY D. GARRETT FAX: 318 322-5577
Februarys, 2014
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor Stein Baughman and Members ofthe Board of Alderman and Alderwomen Town of Farmerville, Louisiana
We have audited the accompanying financial statements ofthe govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund information ofthe Town of Farmerville, Louisiana, as of and for the year ended June 30, 2013, and the related notes to the financial statements, wliich collectively comprise the Town's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and 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 intemal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted oiu* 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 fmancial statements are fi^e of material misstatement.
An audit involves performing procediu^s to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers intemal control relevant to the entity's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in the circiunstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity's intemal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accoimting policies used and the reasonableness of significant accounting estimates tnade by management, as well as evaluating the overall presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in alt material respects, the respective financial position of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund information ofthe Town of Farmerville, Louisiana, as of Jime 30, 2013, and the respective changes in the financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. To the Honorable Mayor Stein Baughman and Members ofthe Board of Alderman and Alderwomen Febmary3,2014 Page 2
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information and the Schedule of Funding Progress on pages A thm F and 41 -46 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Govemmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary infortnation in accordance with auditing standards generally accepted in the United States of America, which consisted of inquires of management about the methods of preparing the information and comparing the information of consistency with management's response to our inquiries, the basic financial statements, and other knowledge we obtained during our audit ofthe basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Farmerville, Louisiana's fmancial statements. The introductory section, the accompanying information listed as other supplemental information in the Table of Contents are presented for purposes of additional analysis are not a required part ofthe basic financial statements.
This supplemental information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory sections and schedule of insurance, have not been subjected to the auditing procedures applied in the audit ofthe basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Govemment Auditing Standards, we have also issued our report dated February 3, 2014, on our consideration ofthe Town of Farmerville'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 intemal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Govemment Auditing Standards in considering Town of Farmerville's intemal control over financial reporting and compliance.
Garrett & Garrett, CPA
West Monroe, Louisiana Febmary 3, 2014
-II- MANAGEMENT'S DISCUSSION AND ANALYSIS Town of Farmerville, Louisiana Management's Discussion and Analysis June 30, 2013
The management of the Town of Farmerville, Louisiana offers readers of the Town of Farmerville, Louisiana's (Town) financial statements this narrative overview an analysis ofthe financial activities ofthe Town for the fiscal year ended June 30,2013. Management discussion and analysis is designed to provide an objective analysis ofthe Town's financial activities based on currently known facts, decisions, or conditions.
Overview ofthe Financial Statements
The Town's basic fmancial statements consist ofthe govemment-wide financial statements, fund financial statements, and notes to the financial statements. This report also contains other supplementary information, which is in addition to the basic financial statements.
Govemment-Wide Financial Statements
The statement of net position presents information on all ofthe Town's assets and liabilities, with the difference between the two reported as net position. The statement of activities shows how the govemment's net position changed during this fiscal year. All changes in net position 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 activities and business-type activities. Govemmental activities normal ly are those activities that are supported by taxes, licenses, permits, fmes and intergovenmiental revenues for example, the police and fire departments. Business-type activities are functions 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 Farmerville, Louisiana maintains four individual govemmental funds, Genera! Govemment, Special Revenue, Debt Service, and Capital Projects. Information is presented separately in the govemmental fund balance sheet and in the govemmental fund statement of revenues, expenditures, and changes in fund balances for the general fimdwhic h is considered to be a major fimd.
The Town adopts an annual budget for its general fund. A statement of revenues, expenditures and changes in fund balance is presented on Statement A which compares actual revenues and expenditures to the original budget and amended budget figures. The original budget was adopted on June 11, 2012 and it was amended on June 11, 2013.
The Town operates one proprietary fimd. The Town uses an enterprise fund to account for its vrater and sewer disposal operations. This enterprise 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 ftill understanding ofthe data provided in the govemment-wide financial statements. The notes are found on pages 13-40.
Goyemment-wide Financial Analysis
Overall, the Town's financial position and results of its operation improved in fiscal 2013. The largest percentage ofthe total assets (80%) is the Town's investment in net capital assets. The Town has outstanding debt of $3,619,699.87 in 2013 and $3,804,318.45 in 2012, which was used to financesom e ofthe cost of assets of $25,954,045.45 in 2013 and $24,441,791.76 in 2012. (For more detailed information on the Town's debt and capital assets, see pages 24 - 28.) The total liabilities of $4,926,774.99 in 2013 and $ 5,008,378 in 2012. The tolal liabilities equal 24% of tolal assets in 2013 and 25% for the year 2012.
-A- The following table reflects the condensed statement of net position at June 30, 2013.
Govemmental Business-Type Activities Activities Total Assets Current Assets $ 1.668,351.901 _L_ 460.026.80 1 $ 2,128,378.70 I Non-current Assets 8.967.509.49' 9.083.337.35 18.050.846.84 1 Total Assets $ 10.635,861.39 $ 9.543.364.15 s_ 20.179.225.54 1 Liabilities 1 Current Liabilities $ 584,230.31 $ 272.418.71 _$_ 856.649.02 1 Non-current Liabilities 3.496.131.97 573.994.00 4.070.125.97 1 Total Liabilities $ 4.080,362.28 $ 846.412.71 4.926.774.99 1
Net Position Net Investments in Capital Assets $ 4.426.771.47 $_ 8.376.620.46 $ 12.803.391.93 Restricted 391.582.74 270.615.10 662.197.84 Unrestricted 1.722,994.90 49.715.88 1.772.710.78 Total Net Position J. 6.541.349.11 ^ 8.696.951.44 ±. 15.238.300.55 1 The Town's govemmental activities increased the net position by $159,165.20. The total change in business-type activities increased the Town's assets by $150,885.98. Below is a summary ofthe Statement of Activities.
Govemmental Business-Type Activities Activities Total Revenues $ 526.363.36 $ 1.807.086.09 $ 2.333.449.45 1 General Revenues 3.279.292.63 44.421.65 3.323.714.28 1 Total Revenues $ 3.805.655.99 S 1.851.507.74 $ 5.657.163.73 1
Expenses General and Adnunistrative $ 607.839.26 $ .00 _$ 607.839.26 i Public Safety 1.325,208.09 .00 1.325.208.09 Public Services 1.240.172.92 .00 1.240.172.92 Culture and Recreation 396,173.49 .00 396.173.49 2,429.69 .00 2.429.69 Capital Proiects 2.656.77 .00 2.656.77 Water & Sewer .00 1,700.621.76 1.700.621.76 Interest on Long-Term Debt 72.010.57 .00 72.010.57 Total Expenses $ 3,646.490.79 $ 1.700.621.76 .$ 5.347.112.55 1 1 IncreasesfDecreases^ in Net Position $ 159.165.20 $ 150.885.98 .$ 310.051.18 1
Net Position-Julv 1.2012 6.382.183.91 8,546.065.46 14,928.249.37
Net Position - June 30. 2013 $ 6,541,349.11 $ 8,696,951.44 $ 15,238,300.55 PROGRAM REVENUES
0 15.07^4 70% D 1.50% ..^^^0.02% • 13.88% ~-^^^K^k^^^i-^ ^ SS^^^^^^^^J • lu. /4Vl>
%^ ^--^m 110% B 46.99%
• General Go^^rnment n Public Safety • Public Ser\ices • Culture and Recreation D Water • Sewer n Grants n Captial Grants
Program Revenues are Broken Down By:
General Government $ 476.80 Public Safety 109,671.17 Public Services 390,611.30 Culture and Recreation 25,604.09 Water 1,096,458.15 Sewer 323,933.43 Grants 35,000.00 Capital Grants 351,694.51 Total Program Revenues $ 2.333.449.45
-c- GENERAL REVENUES
1025% 10.10% • 0.73%
• 2223%
15 7.62%
I Property-Ta^res • Sales TaKes nFranelise Taxes • AlcolTolieBe^-eraEE Tax lOecLpaiionalLiceraes I OriierLtceirsesandTzies D Video Binga D Im^5tment Earning • liter2;o\"erranen Re-'SHue I ivSstdlane:ous
General Revenues Consist ofthe Following:
Property Taxes $ 738,922.03 Sales Taxes 1,914,974.46 Franchise Taxes 178,060.21 Alcoholic Beverage Tax 8,222.00 Occupational Licenses 193,785.36 Other Licenses & Taxes 3,165.36 Video Bingo 72,322.88 Investment Earnings 24,100.81 Intergovernment Revenue 47,498.86 Miscellaneous 142,662.31 Total General Revenues $ 3.323.714.28
-D- Financial Analysis ofthe Govemment*s Funds
The Town of Farmerville's govemmental funds reported a combined ending fimd balances of $2,635,570.64, which is a decrease of $498,601.91. Ofthe $2,635,570.64, $194,192.24 is reserved for debt service.
The Town's proprietary fund shows a negative ending unrestricted net position of $49,715.88. The total equity increased by $150,885.98.
General Fund Budgetary Highlights
The major differences between the original budget and the final budget ofthe General Fimd are:
1. The increase in budget revenue of $211,400 is due mainly to miscellaneous income due to sell of timber. The difference between budget and actual revenue was $ 186,988.43. The difference is Garbage Fees and Miscellaneous Income.
2. Expenditures increased over budget in the amoimt of $29,172.72.
The final budget and the actual results difference shows a negative position. The difference in budgeted revenue and actual is .86%.
Capital Asset and Debt Administration
The total investment in net capital assets as of June 30, 2013 is $16,068,615.
New major capital assets purchased in fiscal 2013 are:
1. The Town purchased 60 acres of land to be used as an industrial park.
2. The Street and Water Department purchased $ 160.841 worth of equipment through the utilization of a grant/loan combination from the USDA.
3. The Sales Tax Department refinanced its sales tax bonds and spent $892,788 for repaying streets in town.
4. The Sewer Department spent $ 156,983 for a portable treatment plant in order to give service to an area in the town that did not have sewer service..
5. The Police Department purchased one new patrol imit with all new equipment, including camera and radar for a total price of $32,936.
6. The Water Department purchased a pick up truck for $29,347.
7. The Street, Sanitation, Water and Sewer Departments purchased 21 handheld radios for $4,790.
At the end ofthe current fiscal year, the Town had a total outstanding bonded debt and capital leases of $3,619,700. This debt is financed through sales taxes collected.
Current Financial Factors In the first 4 months of fiscal 2014; sales tax collections are up 1.75% over amounts collected in the same time last year.
The budget for fiscal 2014 is $5,786,970 in gross revenue with expenses of $5,646,362. There is $20,000 in the budget for a new sign at Town Hall, and $30,000 in Street Department for a new packer. There is also $140,000 in Water Department budget for painting of elevated tank, and $60,000 in the Police Department for the purchase of two new patrol units, and $230,000 budgeted in the Fire Department for the purchase of a new Rescue Unit and '/z ton pick up..
The water, sewer, and sanitation revenues increased by $50,598 in the first four months of 2014 compared to the same time period in 2013. Requests for Information
This financial report is designed to provide a general overview ofthe Town's finances. Questions conceming any ofthe information provided in this report or requests for additional financial information should be addressed to Gay Nell Pepper, Town Clerk, Farmerville, Louisiana. BASIC FINANCIAL STATEMENTS TOWN OF FARMERVILLE EXHIBIT A FARMERVILLE. LOUISIANA STATEMENT OF NET POSITION JUNE 30. 2013
PRIMARY GOVERNMENT GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES TOTAL ASSETS
Cash and Cash Equivalents $ 1,282,517.84 $ 272,848.66 $ ],555,366.50 Receivables Net 196,013.72 200.769.73 396,783.45 Receivables - Others 8,326.75 .00 8,326.75 Prepaid Expenses 142,946.00 24.956.00 167,902.00 Due from Other Funds 38.547.59 (38.547.59) .00 Restricted Cash and Cash Equivalents 1,275,515.15 706.716.89 1.982,232.04 Capital Assets, Net Land $ 381,185.91 $ 25,752.00 $ 406.937.91 Buildings 2,216,560,15 90,505.85 2,307,066.00 Improvements Other than Buildings 1,139,920.85 .00 1.139,920.85 Infirastructure 3,304,094.13 .00 3,304,094.13 Fumiture & Equipment 4,719,870.31 14,076,156.25 18,796,026.56 Less: Acciunulated Depreciation (4,069,637.01) (5,815.793.64) (9,885.430.65) Capital Assets. Net of Depreciation $ 7,691,994.34 $ 8,376.620.46 $ 16,068.614.80
Total Assets $ 10.635.861.39 $ 9.543.364.15 $ 20.179.225.54
LIABILITIES
Accounts Payable $ 134,206.26 $ 82,913.49 $ 217.119.75 Accrued Liabilities 159.940.15 17,784.22 177,724.37 Payable from Restricted Assets Accrued Interest Payable 15,523.00 1,526.00 17,049.00 Customer Deposits .00 150,195.00 150,195.00 Current Portion of Long-Term Obligations 274,560.90 20,000.00 294,560.90 Non-Current Portion of Long-Term Obligations 2,975,138.97 350,000.00 3,325,138.97 Post Retirement Benefits 520,993.00 223.994.00 744.987.00 Total Liabilities $ 4,080.362.28 |
NET POSITION
Net Investment in Capital Assets 4,426,771.47 $ 8.376.620.46 $ 12,803,391.93 Restricted for: Capital Projects Funds 152,400.73 .00 152.400.73 Debt Service Funds 180.292.24 270,615.10 450.907.34 Sales Tax 58.889.77 .00 58,889.77 Unrestricted 1,722.994.90 49,715.88 1.772.710.78 Total Net Position $ 6.541.349.11 $ 8.696.951.44 $ 15.238,300.55
The notes are an integral part of these statements. See accompanying independent auditors' report.
-I- TOWN OF FARMERVILLE EXHIBIT B FARMERVILLE. LOUISIANA STATEMENT OF ACTlVmES FOR THE YEAR ENDED JUNE 30, 2013
NET (EXPENSES) REVENUES AND CHANGES IN NET POSITION PROGRAM REVENUE PRIMARY GOVERNMENT OPERATING CAprrAL FUNCTIONS/PROGRAMS CHARGES FOR GRANTSAND GRANTS AND GOVERNMENTAL BUSINESS-TYPE PRIMARY GOVERNMENT EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS AcnvmEs ACTivrriES TOTAL Governmental Activities General Govemment GetieialFund s 466.432.57 $ 476.80 S .00 $ .00 S (465,955.77) S .00 S (465.955.77) Sales Tax 141.406.69 .00 .00 .00 (141.406.69) .00 (141.406.69) Public Safety Police 891.887.48 109.671.17 .00 .00 (782,216.31) .00 (782,216.31) Fire 433,320.61 .00 .00 .00 (433.320.61) .00 (433.320.61) Public Services Garbage 564.450.23 390.611.30 .00 .00 (173.838.93) .00 (173,838.93) Streets 671,596.66 .00 .00 .00 (671,596.66) .00 (671.596.66) Maintemuice 4,126.03 .00 .00 .00 (4,126.03) .00 (4,126.03) Culture and Recreation 396,173.49 25.604.09 .00 .00 (370,569.40) .00 (370,569.40) Prison Labor & Expenditures 2,429.69 .00 .00 .00 (2.429.69) .00 (2,429.69) Capital Projects 2.656.77 .00 .00 .00 (2.656.77) .00 (2.656.77) Interest on Long-Tetm Debt 72,010.57 .00 .00 .00 (72,010.57) .00 (72,010.57) Totol Governmental Activities s_ 3.646,490.79 $_ 526,363.36 L .00 s .00 ?_ (3,120,127.43) L .00 L_ (3.120.127.43) Business-Type Activities Water Department s 1,205.633.04 S 1,096,458.15 s 35,000.00 S 351,694.51 s .00 s 277,519.62 $ 277,519.62 Sewer Department 494,988.72 323.933.43 .00 .00 .00 (171,055.29) (171,055.29) Total Business-Type Activities L_ 1.700.621.76 $_ 1,420,391.58 L 35.000.00 $ 351.694.51 5- .00 $_ 106,464.33 $_ 106,464.33 Total Primary Govemment $_ (3,120.127.43) $_ 106,464.33 s (3.013,663.10) General Revenues Taxes: Property Taxes Levied for General Purposes General Govemment s 218.235.22 S .00 S 218,235.22 Fire Department 512,306.28 .00 5)2,306.28 Housing Authority in Lieu of Taxes 8.380.53 .00 8.380.53 Sales Taxes Special Revenue Funds 1.436,408.17 .00 1.436.408.17 Police Departinent 478,566.29 .00 478.566.29 Franchise Taxes 178,060.21 .00 178.060.21 Alcoholic Beverage Tax 8.222.00 .00 8.222.00 Occupational Licenses 193,785.36 .00 193,785.36 Other Licenses and Taxes 3,165.36 .00 3,165.36 Video Bingo 72.322.88 .00 72,322.88 Investment Earnings 18,643.75 5,457.06 24,100.81 Intergovernment Revenue 47,498.86 .00 47,498.86 Miscellaneous 73.697.72 68.964.59 142.662.31 Administralive Fees 30,000.00 (30,000.00) .00 Total General Revenues $_ 3.279.292.63 J_ 44.421.65 ; 3,323.714.28 Change in Net Position $ 159,165.20 s 150.885.98 E 310,051.18 Net Position - Beginning 6.382,183.91 _- 8,546,065.46 14,928.249.37 Net Position - Ending 6.541.349.11 8.696.951.44 E 15.238.300.55 The notes are an integral part of these statements. Sec accompanying independent auditor's report L, K TOWN OF FARMERVILLE EXHIBIT C FARMERVILLE, LOUISIANA BALANCE SHEETS GOVERNMENTAL FUNDS JUNE 30, 2013
TOTAL MAJOR FUNDS NON-MAJOR GOVERNMENT ASSETS GENERAL FUND SALES TAX FUNDS FUNDS
Cash and Cash Equivalents $ 168,616.57 $ 633,010.74 $ 480.890.53 $ 1,282,517.84 Property Taxes Receivable, Net 194.77 .00 .00 194.77 Franchise Taxes Receivables 12,543.70 .00 .00 12,543.70 Sales Tax Receivable 62,507.51 80.511.93 40,255.81 183,275.25 Accounts Receivables - Others 8,326.75 .00 .00 8,326.75 Prepaid Items 87,597.00 26,540.00 14.909.00 129,046.00 Due from Other Funds 6,663.78 9,900.00 8.083.81 38.547.59 Cash and Cash Equivalents 836.581.57 58.889.77 380,043.81 1.275.515.15 TOTAL ASSETS $ 1.183.031.65 $ 808.852.44 $ 938.082.96 $ 2.929.967.05
LIABILITIES AND FUND BALANCE
LL\BILmES Accounts Payable 86.400.22 $ 34,299.83 $ 13,506.21 $ 134,206.26 Accrued Liabilities 43,065.54 14,879.61 5,251.00 63,196.15 Deferred Revenues 96,744.00 .00 .00 96,744.00 Payables Others .00 .00 250.00 250.00 Total Liabilities $ 226.290.76 $ 49.179.44 $ 19.007.21 $ 294.396.41
FUND BALANCE Nonspendable 87,597.00 $ 26.540.00 $ 28.809.00 $ 142,946.00 Restricted .00 58,889.77 332,692.97 391.582.74 Assigned 792.466.91 674,243.23 557,572.69 2.024.282.83 Unassigned 76.757.98 .00 1.09 76.759.07 Total Fund Balance 956.821.89 S 759.673.00 S 919.075.75 S 2.635.570.64
TOTAL LIABILITIES AND FUND BALANCE S 1.183.031.65 S 808.852.44 S 938.082.96 S 2.929.967.05
The notes are an integral part ofthe fmancial statements. See accompanying independent auditors' report.
-3- TOWN OF FARMERVILLE EXHIBIT C-1 FARMERVILLE, LOUISIANA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION - GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30. 2013
FUND BALANCES - Total Goyemmental Funds $ 2.635,570.64
Amounts reported for Govenunental Activities in the Statement of Net Position are different because:
Capital Assets used in Govemmental Activities are not Financial Resources and therefore are not reported in the Governmental Funds.
Goyemmental Capital Assets $ 11,761,631.35 Less: Accumulated Depreciation (4,069.637.00 Net $ 7,691,994.34
Long-term Liabilities, including Bonds Payable, are not due and payable in the ciurent period and therefore are not reported in the Governmental Funds.
Accrued Interest Payable $ 15,523.00 2012 Bonds Payable 2,450.000.00 USDA Loan 239.622.38 Revenue Bonds 455.000.00 Lease Purchase 105,077.49 Net OPEB Obligation 520,993.00 Net $ 3,786,215.87
NET POSITION OF GOVERNMENTAL ACTIVITIES (EXHIBIT A^ $ 6.541.349.11
The notes are an integral part of this statement. See accompanying independent auditors* report.
-4- TOWN OF FARMERVILLE EXHIBIT D FARMERVILLE. LOUISIANA STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30.2013
TOTAL MAJOR FUNDS NON-MAJOR GOVERNMENT REVENUES GENERAL FUND SALES TAX FUNDS FUNDS Taxes Property $ 477,206.71 $ .00 $ 261,715.32 $ 738,922.03 Sales 478,566.29 958,176.23 478,231.94 1,914,974.46 Franchise 178,060.21 .00 .00 178,060.21 Licenses and Pemiits 277,495.60 .00 .00 277,495.60 Intergovernment 47,498.86 .00 .00 47,498.86 Charges for Services 424,402.08 .00 .00 424,402.08 Fines and Forfeits 76,357.19 .00 .00 76,357.19 Miscellaneous Revenues 53,717.78 14,045.00 34,265.86 102,028.64 Interest Income 6.645.03 7,483.55 .00 14,128.58 Fees - Faraier*s Maricet 1,789.00 .00 .00 1.789.00 State of Louisiai^ Supplemental Pay 75,207,50 .00 .00 75,207,50 Administrative Fee 75,000.00 .00 .00 75,000.00 Giants .00 .00 351,694.51 351,694.51 Total Revenues S 2.171.946.25 $ 979.704.78 $ 1.125,907.63 S 4,277,558.66
EXPENDITURES Current General and Administrative 604,159.55 S 128,594.80 S 310,961.32 S 1.043,715.67 Public Safety 951,919.45 .00 .00 951,919.45 Fire Department 213,645.62 .00 .00 213,645.62 Sanitation Department 500,291.50 .00 .00 500,291.50 Streets .00 553,640.55 .00 553,640.55 Prison Labor and Expenditures .00 2,429.69 .00 2,429.69 Maintenance Department .00 4.126.03 .00 4,126.03 Debt Service .00 .00 261.909.66 261,909.66 Capital Outlay .00 .00 1,244,482.40 1,244.482.40 Total Expenditures S 2.270.016.12 S 688.791.07 $_ 1.817.353.38 4,776,160.57
EXCESS (DEHCIENCY) OF REVENUE OVER (UNDER) EXPENDITURES (98.069.87) S 290.913.71 S (691.445.75) $ (498.601.91)
OTHER FINANCING SOURCES (USES) Operating Transfers In S 588,778.48 S .00 $ 389,330.79 S 978,109.27 Operating Transfers Out (339.202.22) (143.003.00) (495.904.05) (978.109.27) Total Other Financing Sources (Uses) 249.576.26 $ (143.003.00) S (106,573.26) $_ .00
Net Change in Fund Balances 151,506.39 $ 147,910.71 $ (798,019.01) S (498,601.91)
FUND BALANCE. Beginning 805.315.50 _ 611.762.29 1.717.094.76 3.134.172.55
FUND BALANCE. Ending 956.821.89 $ 759.673.00 $ 919.075.75 $ 2.635.570.64
The notes are an integral part of this statement See accompanying independent auditors* report.
-5- TOWN OF FARMERVILLE EXHIBIT D-1 FARMERVILLE. LOUISIANA RECONCILIATION OF THE STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2013
MAJOR FUNDS TOTAL TOTAL GENERAL GOVERNMENT NET CHANGE IN FUND BALANCE - FUND SALES TAX NON-MAJOR FUNDS Total Governmental Funds (EXHIBIT D) S 151.506.39 $ 147.910.71 $ (798,019.01) S (498,601.91)
Amounts reported for govemmental 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 estimated usefiil lives and reported as depreciation expense.
Capital Outlay - Net 299,343.93 16,214.91 892,787.89 1,208.346.73 Depreciation Expense (311,185.61) (122,884.91) (69,695.76) (503,76628)
The instance of long-tenn debt provides current financials resources to govemmental funds, while the repayment ofthe principal of a long-term Debt consumes the current fmancial resources of govemmental funds. Neither transaction, however, has any effect on net position. Also, govemmental fimds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The detail of these differences in the treatment of long-term debt and related items is as follows:
USDA Loan Payments .00 13,899.09 .00 13,899.09 2012 Bond Payments .00 15,000.00 .00 15,000.00 Revenue Bond Payments .00 .00 125,000.00 125,000.00 Bancorp South - Lease Payments 15,719.49 .00 .00 15,719.49
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in govemmental funds.
Increase/Decrease in Accrued Expenses .00 (4,199.59) 21,823.34 17,623.75 Net Other Post Employment Benefits Obligation (118.997.67) (54,098.00) (60.960.00) (234.055.67)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES (EXHIBIT B) $ 36.386.53 S 11.842.21 $ 110.936.46 $ 159.165.20
The notes are an integral part of these statements. See accompanying independent auditors' report.
-6- TOWN OF FARMERVILLE EXHIBIT E FARMERVILLE, LOUISIANA STATEMENT OF FUND NET POSITION PROPRIETARY FUNDS JUNE 30, 2013
BUSINESS-TYPE AC-nvrriES - ENTERPRIS E FUNDS MAJOR FUNDS ASSETS WATER SEWER TOTAL Ciurent Assets Cash and Cash Equivalents $ 250.730.04 $ 22.118.62 $ 272,848.66 Accounts Receivable, Net 200,769.73 .00 200,769.73 Prepaid Insurance 21,377.00 3,579.00 24,956.00 Total Current Assets S 472,876.77 $ 25,697.62 $ 498,574.39
Non-CiuTcnt Assets Restricted Assets: Cash and Cash Equivalents Water Fund - Meter Deposits $ 187,407.31 S .00 $ 187.407.31 Depreciation and Contingency Fimd 106.316.19 142,378.29 248.694.48 Sewer Bonds - Reserve .00 38,373.61 38,373.61 2010 Sewer Bonds .00 232,241.49 232,241.49 Total Restricted Assets $_ 293,723.50 $ 412,993.39 $ 706,716.89
Capital Assets Property, Plant, and Equipment, at Cost $ 7.228,385.16 $ 6,791,058.41 $ 14,019,443.57 Construction in Progress .00 147,218.53 147,218.53 Less: Accumulated Depreciation (2,729,732.60) (3,086,061.04) (5.815,793.64) Land 25,752.00 ^ 25,752.00 $ 4,524,404.56 $ 3,852.215.90 $ 8.376,620.46 Total Capital Assets $ 5.291.004.83 $ 4.290.906.91 $ 9.581.911.74 TOTAL ASSETS
LL\BILmES
CurrenAccoimtt Liabilities Payabls (Payable e from Current Assets): S 47,995.11 $ 34,918.38 $ 82,913.49 Accrued Liabilities 14,891.98 2,892.24 17,784.22 Total Current Liabilities (Payable from Current Assets) $_ 62,887.09 $ 37,810.62 $ 100,697.71 Current Liabilities (Pavable from Restricted Assets) Customers' Deposits $ 150,195.00 $ .00 $ 150,195.00 Bonds Payable .00 20,000.00 20.000.00 Accrued Interest Payable .00 1,526.00 1,526.00 Total Current Liabilities (Payable fh)m Restricted Assets) $ 150,195.00 $ 21,526.00 $ 171,721.00
Long-Term Liabilities Due To/From Sewer Funds $ (185,729.83) $ 185,729.83 $ .00 Due To/From Other Funds 28.647.59 9,900.00 38,547.59 Bonds Payable .00 350,000.00 350.000.00 Post Retirement Benefits 138,287.00 85,707.00 223,994.00 Total Long-Term Liabilities (18,795.24) $ 631,336.83 $ 612,541.59
TOTAL LIABILITIES $ 194,286.85 $ 690,673.45 $ 884,960.30 TOWN OF FARMERVILLE EXHIBIT E FARMERVILLE, LOUISIANA CONTINUED STATEMENT OF FUND NET POSITION PROPRIETARY FUNDS JUNE 30, 2013
BUSINESS -TYPE ACTIVITIES - ENTERPRISE FUNDS MAJOR FUNDS NET POSITION WATER SEWER TOTAL
Net Investment in Capital Assets $ 4,524,404.56 $ 3.852.215.90 $ 8,376,620.46 Restricted for Debt Service .00 270,615.10 270,615.10 Unrestricted 572,313.42 (522,597.54) 49,715.88 TOTAL NET POSITION 5_ 5,096,717.98 $ 3,600,233.46 $ 8,696,951.44
TOTAL LIABILITIES AND NET POSITION 1= 5.291.004.83 $ 4.290.906.91 $ 9.581.911.74
The notes are an integral part of these statements. See accompanying independent auditors' report.
-8- TOWN OF FARMERVILLE EXHIBIT F FARMERVILLE, LOUISIANA STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2013
BUSINESS -TYPE ACTIVITIES - ENTERPRISE FUNDS MAJOR FUNDS WATER SEWER TOTAL ChJerating Revenues Charges for Services $ 1,096,458.15 $ 323.933.43 $ 1,420,391.58 Miscellaneous 68,464.59 500.00 68,964.59 Total Operating Revenues 1- 1,164,922.74 $ 324,433.43 $ 1,489,356.17 Operating Exi>enses Administrative Expenses Salaries and Employee Benefits $ 474,466.32 $ 154,052.31 $ 628,518.63 Administrative Fee 30,000.00 .00 30.000.00 Advertising 893.30 .00 893.30 Auditing Fees 6,000.00 1,000.00 7.000.00 Bank Charges 433.72 .00 433.72 Computer Expense 12.352.66 .00 12,352.66 IBM 3,628.57 .00 3,628.57 Insurance - Liability 15,390.94 7,322.00 22.712.94 Miscellaneous 590.00 .00 590.00 Office Supplies 5,928.78 38.99 5,967.77 Postage 16,496.35 .00 16,496.35 Equipment and Truck Expense 37,477.83 8,493.92 45,971.75 Telephone Expense 13,048.07 1,262.03 14,310.10 Travel and Training 3,198.01 40.00 3,238.01 Water Supply Initiative Program 23,375.00 .00 23,375.00 Total Administration $_ 643,279.55 $ 172,209.25 $ 815,488.80
Materials and Supplies Chlorine $ 32,662.30 $ 8,055.00 $ 40,717.30 Chlorine Equipment Repair 1,923.00 .00 1,923.00 Chemicals .00 3,184.30 3,184.30 Chemicals Test .00 7,666.00 7.666.00 Grant Expense .00 5,500.00 5,500.00 Supplies .00 12,538.14 12.538.14 Sub Contract Services 48.704.16 2,300.00 51,004.16 Pump Repairs .00 48,712.02 48.712.02 Meter Replacements 45,436.89 .00 45,436.89 Pilgrims Pride Water Well Repairs 59.580.02 .00 59,580.02 Major Well and Tank Repairs 57,935.84 8,260.43 66,196.27 Treatment Plant Repairs .00 18,518.52 18,518.52 Safe Drinking Program 5,011.20 .00 5,011.20 Utilities 151,609.94 57,490.65 209,100.59 Total Materials and Supplies $_ 402,863.35 $ 172,225.06 $ 575,088.41 TOWN OF FARMERVILLE EXHIBIT F FARMERVILLE, LOUISIANA CONTINUED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2013
BUSINESS -TYPE ACTIVITIES - ENTERPRISE FUNDS MAJOR FUNDS • WATER SEWER TOTAL
Depreciation and Amortization $_ 189,490.14 $_ 131,558.91 L. 321,049.05
Total Operating Expenses $_ 1,235,633.04 $ 475,993.22 I_ 1,711,626.26
Net Operating Income (Loss) S (70,710.30) $ (151,559.79) $_ (222,270.09)
Non-Operating Revenues (Expenses) Interest Income $ 3,001.69 $ 2.455.37 5,457.06 Interest Expense .00 (18,995.50) (18,995.50) Total Non-Operating Revenues (Expenses) S 3,001.69 (16,540.13) (13,538.44)
Transfers & Others Grants - LGAP $ 35,000.00 $ .00 $ 35,000.00 Transfer to Capital Additions Fund 351,694.51 .00 351,694.51 Total Transfers & Others r 386,694.51 .00 386,694.51
Changes in Net Position $ 318,985.90 $ (168,099.92) $ 150,885.98
Net Position - Beginning of the Year $ 4,777.732.08 $ 3,768,333.38 $ 8,546,065.46
Net Position - End ofthe Year $ 5.096.717.98 $ 3.600.233.46 $ 8.696.951.44
The notes are an integral part of this statement. See accompanying independent auditors' report.
-10- TOWN OF FARMERVILLE EXHIBIT G FARMERVILLE. LOUISIANA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30. 2013
BUSINESS -TYPE ACTIVITIES - ENTERPRISE FUNDS MAJOR FUNDS WATER SEWER TOTAL Cash Flows fix>mOperatin g Activities Receipts from Customers 1,096.458.15 : 323,933.43 1.420.391.58 Payments to Suppliers (544,375.75) (219,753.92) (764,129.67) Payments to Employers and Employee Benefits (474,466.32) (120,578.44) (595.044.76) Other Receipts (Payments) 68,464.59 500.00 68.964.59 Net Cash Provided by Operating Activities 146.080.67 $ (15,898.93) $ 130,181.74
Cash Flows from Noncapital Financing Activities Customer Deposit $ 5.985.00 $ .00 $ 5,985.00 Due To/From Other Funds (759.20) .00 (759.20) Due To/From Sewer/Water Dept. (11,064.00) 11,064.00 .00 Net Cash Provided by Noncapital Financing Activities $ (5,838.20) $ 11,064.00 $ 5,225.80
Cash Flows fh>m Capital and Related Financing Activities Purchase of Capital Assets $ (458,464.57) $ (23,643.46) $ (482,108.03) Construction in Progress .00 (81,078.53) (81,078.53) Interest Expense .00 (18,995.50) (18.995.50) Capital Additions Grant 351,694.51 .00 351,694.51 Payment on Long-Term Debt .00 (15,000.00) (15,000.00) Grants - LGAP 35,000.00 250,000.00 285,000.00 Net Cash (Used) by Capital and Related Financing Activities (71.770.06) $ 111.282.51 $ 39.512.45
Cash Flows from Investing Activities Interest Eamed on Investments 3.001.69 $_ 2,455.37 $. 5,457.06 Net Cash Provided (Used) by Investing Activities $ 3,001.69 $ 2,455.37 $ 5,457.06
Net Increase (Decrease) in Cash and Cash Equivalents $ 71,474.10 $ 108.902.95 $ 180,377.05
Cash and Cash Equivalents - July 1 472,979.44 326.209.06 799.188.50
Cash and Cash Equivalents - June 30 $_ 544.453.54 435,112.01 L- 979.565.55 Reconciliation of Cash and Cash Equivalents to the Statement of Net Position Cash and Cash Equivalents $ 250.730.04 $ 22,118.62 $ 272.848.66 Restricted Cash Water Fund - Meter Deposit 187,407.31 .00 187,407.31 Depreciation and Contingency Fund 106,316.19 142.378.29 248,694.48 Sewer Bonds - Reserve .00 38,373.61 38.373.61 2010 Sewer Bonds .00 232,241.49 232,241.49 Total Cash and Cash Equivalents 544.453.54 $ 435.112.01 979.565.55
ll- TOWN OF FARMERVILLE EXHIBIT G FARMERVILLE. LOUISIANA CONTINUED STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2013
BUSINESS -TYPE ACTIVITIES - ENTERPRISE FUND MAJOR FUNDS WATER SEWER TOTAL Reconciliation of Operating Income (Loss) to Net Cash Flows from Operating Activities Operating Income (Loss) $ (70,710.30) $ 051.559.79) $ (222.270.09) Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Depreciation 189,490.14 131,558.91 321,049.05 Changes in Assets and Liabilities (Increase) Decrease in Accounts Receivable (18,935.99) .00 (18,935.99) (Increase) Decrease in Prepaid Insurance (3,367.00) 5,029.00 1,662.00 Increase (Decrease) Other Payables .00 Increase (Decrease) in Accounts Payable (6,594.50) (34,338.92) (40,933.42) Increase (Decrease) in Accrued Liabilities 56,198.32 33,411.87 89,610.19 Net Cash Provided (Used) bv Operating Accounts (15.898.93) $ 130.181.74
Schedule of Noncash. No Capital Financing, Capital and Related Financing, and Investing Activities $£ .00 $_ .00 ? .00
The notes are an integral part of this statement. See accompanying independent auditors' report.
-12- TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA TABLE OF CONTENTS NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2013
No. Description Page No.
1. Sunmiary of Significant Accounting Policies 13-19
2. Cash and Investments 20-21
3. Receivables/Allowances for Doubtful Accounts 22
4. Utility Rates 23
5. Property Taxes 24
6. Long-Term Debt 24-27
7. Capital Assets 27-28
8. Interfund Assets/Liabilities 28
9. Compensation 29
10. Employee Retirement 29-33 ll. Related Party Transactions 33
12. Legal Compliance - Budget 33-34
13. On-Behalf Payments 34
14 Summary Disclosures of Significant Contingencies 34
15. Proprietary Fund Segment Information 34-35
16. Statement of Cash Flows for Proprietary Funds 35
17. Economic Dependency 35
18. Summary Disclosures of Significant Contingencies 35
19. Risk Management 36
20. Fund Balance 36
21. Capital Projects Fund 36-37
22. Post Employment Benefits 37-39
23 Subsequent Events 39
24. Fund Changes and Fund Balances 40 TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013
INTRODUCTION
The Town of Farmerville, Louisiana (hereafter referred to as the Town) operates under an elected Mayor/Council form of govemment. The Town's major operations include water and sewer, public safety, fire protection, recreation and parks, and general administrative services.
The council consist of five members who are elected for a four year term. See note number nine for a detail of compensation for the mayor and council.
The Town of Farmerville is located in Union Parish surrounded by Darbonne Lake recreation area. The Town's major industry is timber and poultry, which includes a Poultry processing plant. The Town's population was 3,860 in 2010.
NOTE # 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies ofthe Town of Farmerville, Louisiana conform to generally accepted accounting principles generally accepted in the United States of America (GAAP) as applicable to governments. Such accounting and reporting procedures also conform to the requirements of Louisiana Revised Status 24:517 and to guides set forth in the Louisiana Municipal Audit and Accounting Guide, and to industry audit guide. Audits of State and Local Govemment Units (Revised) The following is a summary of certain significant accounting policies.
GASB Statement No. 14 - The reporting entity, established criteria for determining the govenunental reporting entity and component units that should be included within the reporting entity. Under provisions of this statement, the municipality is considered a primary government, since, it is a special purpose govemment that has a separately elected goveming body, is legally separate, and is fiscallyindependen t of other state or local govemments. As used in GASB Statement No. 14. fiscally independent means that the municipality may without the approval or consent of another governmental entity, determine or modify its own budget, levy its own taxes or set rates or charges, and issue bonded debt. The municipality has oversight of other component units that are either blended into the municipalities basic financial statements or discretely presented in a separate column in the govemment-wide financial statements.
Blended Component Units - The Town of Farmerville did not have any blended component units.
Discretelv Presented Component Units - The Town of Farmerville did not have any Discretely Presented Component Units.
Financial Reporting Entitv - Section 2100 ofthe GASB Codification of Govemmental Accounting and Financial Reporting Standards (GASB Codification) established criteria for determining the govemmental reporting entity and component units that should be included within the reporting entity. For financial reporting purposes, in conformance with GASB Codification Section 2100, the Town includes all fiindswhic h are controlled by or dependent on the Town which was determined on the basis of oversight responsibility, including accountability for fiscal and budget matters, designation of management or goveming authority and authority to issue debt. Certain units of local govemment over which the Town exercises no oversight responsibility, such as the parish police jury, parish school board, other independently elected officials, and other municipalities within the parish, are excluded from the accompanying financial statements. These units of govemment are considered separate reporting entities and issue financialstatement s separate from those ofthe Town. The Town has no component units.
Govemment-Wide Accounting - The govemment-wide financial statements are reported using the economic resources measurement focus and the accmal basis of accounting. Revenues are recorded when eamed and expenses are recorded when a liability is incurred, regardless ofthe timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirementsimpose d by the provider have been met. In accordance with Govenmient Accounting Standards Board Statement No. 34, the Town has presented a Statement of Net Position and Statement of Activities for the Town as a whole. These statements include the primary government, if applicable, with the exception
-13- TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013
NOTE # 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED of fiduciary funds. Those fimds are reported separately. Govemment-Wide accounting is designed to provide a more comprehensive view ofthe govemment's operations and fmancial position as a single economic entity.
Part ofthe effect of interfund has been removed fi'om these statements. Govemmental activities, which normally are supported by taxes and intergoverrmiental revenues, are reported separately fiom business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary govemment is reported separately from certain legally separate component units for which the primary govemment is financiallyaccountable .
The Statement of Activities demonstrates the degree, to which the direct expenses of a given fimctiono r segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific fimction or segment.
Program Revenues include, charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given fimction or segment, and grants and contributions that are restricted to meetings, the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for govemmental funds, proprietary fUnds, and fiduciary funds, even though the latter are excluded from the govenmient-wide financial statements. Major individual govemmental funds and major individual enterprise funds are reported as separate coliunns in the fund financial statements.
Policies specific to govemment-wide financial statements are as follows:
Eliminating Intemal Activitv - Interfund receivables and payables are eliminated in the Statements ofNet Position except for the net residual amounts due between govemmental and business-type activities. These are presented as internal balances. The allocation of overhead expenses from one function to another or within the same fimction are eliminated in the Statement of Activities. Allocated expenses are reported by the function to which they are allocated.
Application of FASB Statements and Intemretations - Reporting on govenunental-type and business-type activities are based on FASB Statements and the Interpretations issued after November 30. 1989, except where they conflict or contradict GASB pronouncements.
Capitalized Assets - Tangible and/or intangible assets used in operations with an initial useful life that extends beyond one year are capitalized. Amounts less than $500 are not capitalized unless they are considered major by the mayor or council. Infrastruchire assets such as roads and bridges are also capitalized. Capital assets are recorded at their historical cost and are depreciated using the straight-line method of depreciation over their estimated useful lives. They are reported net of accumulated depreciation on the Statement of Net Position. Depreciation of contributed assets of proprietary funds is charged against contributed capital as opposed to unrestricted assets.
Under the requirements of GASB Statement No. 34, the Town is considered a Phase 3 govemment as its total annual revenues are less than $10 million. Such govenmients are not required to report major general infrastmcture assets retroactively. The Town has opted not to retroactively report these type of capital assets.
Program Revenues - The Statemenl of Activities presents three categories of program revenues - (1) charges for services; (2) operating grants and contributions; and (3) capital grants and contributions. Charges for services are those revenues arising fi^m charges to customers who purchase, use or directly benefit from goods and services provided by the Town. Grants and contributions, whether operating or capital in nature, are revenues arising fromreceipt s that are restricted for specific use.
14- TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013
NOTE U I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
Indirect Expenses - Expenses are reported according to function except for those that meet the definition of special or extraordinary items. Direct expenses are specifically associated with a service or program. Indirect expenses include general govemment or administration that cannot be specifically traced to a service or program. Govemments are not required to allocate indirect expenses to other functions, and the Town has chosen not to do so.
Operating Revenues - Proprietary funds separately report operating and non-operating revenues. Revenues from transactions ofthe Town*s operation of providing water and sewer services are considered operating revenues. All other revenues, which are reported as cash flows from capital or non-capital financing and investing, are reported as non- operating revenues.
Restricted Net Assets - When an expenditure is incurred for purposes for which both restricted and unrestricted fimd balance is available, the Town considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Town considers amounts to have been spent first out of committed funds, then assigned funds, and finallyunassigne d fimds, as needed, unless the Town has provided otherwise in its commitments or assignment actions.
Fund Accounting - The Town uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions relating to certain govemment fimctions or activities.
A fimd is a separate entity with a self-balancing set of accounts. Funds ofthe Town are classified into two categories: govemmental and proprietary. Each category, in tum, is divided into separate fimd types. The fimd classifications and a description of each existing fimd type follow:
Governmental Funds - Govemmental fimds account for all or most of the Town's general activities, including the collection and disbursement of specific or legally restricted monies, the acquisition or constmction of general fixed assets, and the servicing of general long-term obligations. Govemmental fimds include:
1. Major Govemmental Funds
General Fund - is the general operating fimd ofthe Town and accounts for all financial resources, except those required to be accounted for in other fimds. Starting, as of July 1, 2012, the police department and fire department were transfened to separate accounts. The police department and the fire department have fimds restricted to police and fire department expenditures.
Special Revenue Funds - Sales Tax - The Town of Farmerville Sales Tax Department - The citizens ofthe Town of Farmerville approved a 1% sales and use tax. Proceeds ofthe tax have been pledged and dedicated to the retirement of Sales Tax Bonds dated May 1,1985, which has been retired. The excess funds can be used for streets and sanitation expenditures.
2- Special Revenue Funds - account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.
a. On October 20. 2001 an additional Vi of 1% sales and use tax was approved. This tax was approved for construction of a recreation center and street improvements. Bonds were sold in the amount of $2,900,000 for constmction ofthe recreation center and improvements ofthe streets. The street constmction was completed during 2002. The recreation center was completed at June 30, 2004. The 2002 bonds were paid off in the current year from a 2012 bond issue. The fimds remaining are to be used for street repairs and constmction. The sales taxes approved in 2001 are to be used for retirement ofthe 2012 bonds.
15- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30. 2013
NOTE # 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
b. Farmerville Volunteer Fire Department, Inc. - The Town of Farmerville Volunteer Fire Department filed an amendment to the Articles of Incorporation on January 22, 2001. They also filed for tax exempt stams from the Intemal Revenue Service. They are a tax exempt organization under the code sections 509 (a) (1) and 170 (b) (A) (vi). Based on an opinion, at June 30,2002. ofthe Louisiana Legislative Auditor's office, the Volunteer Fire Department, should be included in the Town's financial statements as a Special Revenue Fund. In prior years the Volunteer Fire Department had been included in the statements as a component unit ofthe Town of Farmerville. The volunteer fire department expenditures for operating the fire department is paid by the Town of Farmerville's General Fund. The transactions in the Volunteer Fire Department, Inc. is for miscellaneous fimd raisers and miscellaneous expense for the volunteer fireman. The Town transfers the State of Louisiana 2% rebate to the volunteer fire department, and is accumulated for purchase of equipment. Contributors to the Volunteer Fire Departments elect all the members ofthe goveming board. The goveming board is solely responsible for the Volunteer Fire Department Operations. The accounting records are maintained by an employee ofthe Town of Farmerville.
c. Farmerville Area Fire Protection District of Union Parish - The Union Parish Police Jury created the Farmerville Area Fire Protection District of Union Parish on November 2,1999. The fire district was created to pass a property tax to provide fire protection for an area ofthe parish without fire protection. The Union Parish Police Jury entered into an intergovernmental agreement with the Town of Farmerville to provide fire protection for the newly created district. The Fire District will retain 5% of the advalorem taxes in their checking account. All other proceeds will be transferred to the Town of Farmerville, to be used by the Town's fire department. Based on an opinion ofthe Louisiana Legislative Auditor's Office, the Fire Protection District should be included in the Town's financial statement as a Special Revenue Fund.
3. Debt Service Funds - These fimds are used to account for the accumulation of resources for, and the payments of, general long-term debt principal, interest and related costs.
4. Capital Proiects Funds - These fimds are used to account for financial resources to be used for the acquisition or constmction of major capital facilities.
Proprietary Funds - Proprietary fimds account for activities similar to those found in the private sector, where the determination of net income is necessary or usefiil to sound financial administration. Proprietary fimds differ fi^m govemmental fimdsi n that their focus is on income measurement, which, together with the maintenance of equity, is an important financial indicator. Proprietary fimds distinguish operating revenues and expenses fromnonoperatin g items. Operating revenues and expense generally result from providing services and producing and delivering goods in connection with a proprietary fimds's principal ongoing operations. Revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Proprietary fimds include:
1 Enterprise Funds - Account for operations (a) 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 changes, or (b) where the governing 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's enterprise fimd includes services for water and sewer.
a. The Town of Farmerville Water Department - The Town of Farmerville rates for user charges are approved by the Town Council and the legal liability for the general obligations portion ofthe water authority's debt remain with the Town of Farmerville.
16- TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30. 2013
NOTE # 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
b. The Town of Farmerville Sewer Department - The sewer charges are approved by the Town Council, but are regulated by the EPA.
Basis of Accounting/Measurement Focus - The accounting and financial reporting treatment applied to a fund is determined by the type of financial statement presentation.
The govemment-wide statements are reported using an economic resources measurement focus and the accrual basis of accoimting. With this measurement focus, all assets and liabilities associated with the operation of govemmental-type and business-type activities are included in the Statement of Net Position. Revenues are recognized when eamed, and expenses are recognized at the time the liabilities are incurred in the Statement of Activities. In these statements, capital assets are reported and depreciated in each fimd.
This same measurement focus and basis of accounting is used by proprietary fimds in the fimd statements. However, all govemmental fimds are reported using a current financial resourcesmeasuremen t focus and the modified accrual basis of accounting. With this measiu'ement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements present increases and decreases in net current assets. Expenditures for capital assets are reported as ciurent expenses, and such assets are not depreciated.
Under the accmal basis of accoimting and the economic resources measurement focus, revenues are recorded when eamed and expenses are recorded when a liability is incurred.
Under the modified accmal basis of accoimting and the current financial resources measure focus revenue is recognized when it is considered measurable and available. Revenue is considered available if it is collected within 60 days of year end or due under a cost reimbursement arrangement. In addition, expenses are generally recorded when a liability has incurred; however, debt service, compensated absences, claims and judgments are recorded as expenses, when payment is made. Furthermore, when the current financial resources measurement focus is used, amounts recorded as assets exclude capital assets and the acquisition of capital assets is treated as an expenditure. In addition, long-term debts are excluded fix)m amounts reported as liabilities. Proceeds from issuing long-term debt is reported as other financing sources and repayment of long-term debt is reported as an expenditure.
Budgets and Budgetary Accounting - The Town adopts an annual budget for the General Fund Special Revenue Funds, and Enterprise Fund. It is prepared in accordance with the basis of accoimting utilized by that fimd. Any revisions that alter the total expenditures must be approved by the council. Budgeted amounts shown are as originally adopted or as amended by the Board. Budget amendments are passed in June each year.
Cash and Cash Equivalents - Cash includes amoimts in demand deposits, interest bearing demand deposits and certificates of deposits. Cash equivalents include amounts in time deposits and those investments with original maturities of 90 days or less. Under state law, the Town may deposit fimds in demand deposits, interest-bearing demand deposits, money market accounts, or time deposits with state banks organized under Louisiana law and national banks having their principal offices in Louisiana. Under state law, deposits, or the resulting bank balances, must be secured by federal deposit insurance or the pledge of securities owned by the bank. The market value ofthe pledged securities, plus the federal deposit insurance must at all times equal the amount on deposit with the bank. These securities are held in the name fo the pledging bank in a holding or custodial bank, that is mutually acceptable to both parties. The State of Louisiana banking regulations require the FDIC to ensure $250,000 of checking and savings for each municipality.
Investments - Investments are limited by Louisiana Revised Statute 33:2955. If the original maturities of investments exceed 90 days, they are classified as investments. Otherwise, the investments are classified as cash and cash equivalents. In accordance with GASB Statement No. 31, investments are recorded at fair value with the corresponding
-17- TOWN OF FARMERVILLE FARMERVILLE. LOUISL\NA NOTES TO FINANCIAL STATEMENTS JUNE 30. 2013
NOTE # I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED increase or decrease reported in investment earnings. All investments ofthe Town are certificates of deposits held at Marion State Bank, First National Bank and Community Trust Bank and the fair value is determined by the face value ofthe certificate.
Bad Debts - Uncollectible amounts for ad valorem taxes are generally not significant. The Town records ad valorem taxes on a cash basis, so no receivables are recorded until year end. Any ad valorem taxes collected within 60 days of year end are considered receivable, so bad debts are not recorded and are considered immaterial. For customers' utility receivables, the allowance method is used to accoimt for uncollectible amounts. Under this method, an allowance account is set up for what is deemed to be uncollectible.
Inventories - Are not considered material and are therefore not recorded. The Town purchases supplies as needed and do not maintain inventory qualities on hand.
Short-Term Interfimd Receivables/Payables - During the course of operation, numerous transactions occur between individual fimds for services rendered. These receivablesan d payables are classified as due from other fimds or due to other fimds on the fimd financial statements' balance sheet. In the process of aggregating data for the statement of net position and the statement of activities, some amounts reported as interfimd activity and balances in the fimds were eliminated or reclassified. Interfimd receivables and payables were eliminated to minimize their "grossing up" effect on assets and liabilities within the govemmental activities colunm.
Restricted Assets - Certain proceeds of the govemmental fimds and the enterprise fimds are classified as restricted assets on the balance sheet because their use is limited. The Town recognizes the use of restricted resources for expenditures that comply with the specific restrictions. Restricted resources are exhausted before unrestricted assets are used.
Prepaid Items - The Town piuchases commercial insurance to cover their risk. Insurance companies usually require the premiums to be paid in advance ofthe coverage periods.
Capital Assets - The Town's assets are recorded at historical cost. Depreciation is recorded using the straight-line method over the usefiil lives ofthe assets as follows:
Equipment and Fumiture 3 -10 Years Buildings 39 - 40 Years Utility Plant/Sewer Collection System 5 - 40 Years Infrastmcture 40 - 60 Years Vehicles 5- 10 Years
In June 1999. the Govemmental Accounting Standards Board issued Statement No. 34 which requires the inclusion of infrastmcture assets used in govemmental activities in the general purpose financial statements retroactively reported back to 1982. An exception exists for local govemments with annual revenues of less than $10 million. As a result of this exception, the Town has elected to not report its govemmental infiastmcture retroactively. The infrastmcture currently being depreciated over a period of 40 years is the water and sewer system that is reported in the business-type activities ofthe Town. From this point forward, the Town will use the basic approach to infiastmcture reporting for its govemmental activities.
Compensated Absences - The Town's maximum vacation pay carry forward each year is 40 hours. Sick pay is limited to 480 hours carryforward. Any vacation pay is paid at the termination of employment, while sick time is not guaranteed. Unpaid vacation time has been recorded as an accmed payable, while sick time has not.
Long-Term Obligations - In the govemment-wide financial statements, debt principal payments of both govemment and business-type activities are reported as decreases in the balance ofthe liability on the Statement of Net Position. In the fimd financialstatements , however, debt principal payments of govemmental fimds are recognized as expenditures when paid. See Note # 6 for detail. -18- TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013
NOTE # I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
Fund Equity - GASB Statement Number 54 establishes standards for five fimd balance classifications that comprise a hierarchy based primarily on the extent to which a govemment is bound to observe constraints imposed upon the use of resources reported in govemment fimds. The nonspendable fimd balance classification includes amounts that cannot be spent because they are either (a) not in spendable form - prepaid items or inventories; or (b) legally or contractually required to be maintained intact.
The spendable portion ofthe fimd balance comprises the remaining four classifications: restricted, committed, assigned and unassigned.
a. Restricted Fund Balance - This classification reflects the constraints imposed on resourceseithe r (a) extemally be creditors, grantors, contributions, or laws or regulationso f other govemments; or (b) imposed by law through constitutional provisions or enabling legislation.
b. Committed Fund Balance - These amounts can only be used for specific purposes determined by formal resolutions or ordinances ofthe Town council - the govemment's highest level of decision making authority. These committed amounts carmot be used for any other purpose unless the city aldermen remove the specified use by taking the same type of action imposing the commitment. This classification also includes contractual obligations to the extent that existing resources in the fimdhav e been specifically committed for us in satisfying those contractual requirements.
c. Assigned Fund Balance - This classification reflects the amounts whose intent is to be used for specific purposes, but are neither restricted nor committed. The Town coimcil and management have the authority to assign amoimts to be used for specific purposes. Assigned fimd balances include all remaining amoimts(except negative balances) that are reported in governmental fimds, other than the general fimd, that are not classified as nonspendable and are neither restricted not committed.
d. Unassigned Fund Balance - This fimd balance is the residual classification for the general fimd and includes all spendable amoimts not contained in the other classifications. In other fimds, the unassigned classification should be used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.
When both restricted and imrestricted resources are available for use, it is the Town's policy to use extemally restricted resources first, then imrestricted resources - committed, assigned and unassigned- in order as needed.
Accounting Estimates - The preparation of financial statements in conformity with accoimting principles generally accepted in the United States of America requires management to make certain estimates and assumptions. Those estimates affect the reported amoimts of assets and liabilities and disclosure of assets and liabilities at the date ofthe financial statements. They may also affect the reported amounts of revenues and expenses of proprietary fimds and the govemment-wide financial statements during the reporting period. Actual results could differ from these estimates.
Maior - Non-Major Funds - The Town's Major Funds are: General Fund, Sales Tax and Business Type Funds - Water and Sewer. The Non-Major Funds: 2002 Sales Tax Fund, Capital Projects Funds, Debt Service Funds. Volunteer Fire Department and Farmerville Area Fire Protection District.
Recently Issued Accounting Principles - GASB 63 - In June 2011, the GASB issued Statemenl 63, Financial Reporting of Defened Outflows of Resources, Defened Inflows of Resources, and Net Position. GASB 63 provides guidance for reporting defened outflows of resources, defened inflows of resources, and net position in a statement of financial position and related disclosures. The statemenl of net assets is renamed the statement of net position and includes four components: assets, defened outflows of resources, liabilities, and defened inflows of resources. The provisions of this statement are effective for financial periods beginning after December 31,2011. During fiscalyea r ended June 30,2013, the Town adopted the statement and restated balances previously refened to as net assets to net position. -19- TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013
NOTE # 2 - CASH AND INVESTMENTS
CASH PLEDGED BY BANKS TOTAL MARION FIRST COMMUNITY RECONCILED AMOUNT STATE NATIONAL TRUST AMOUNT PER BANKS BANK BANK BANK Total-June 30.2013 $ 3,536,370.00 S 3,639,212.94 $ 1,943,139.72 S 636,482.39 $ 1,059.590.83 Pledge Receipt (3.232.612.63) (3.232.612.63) (1.870.687.20) (473.496.87) (888,428.56) Difference S 303.757.37 $ 406.600.31 S 72.452.52 $ 162.985.52 $ 171.162.27 FDIC Covers Savings Maximum S (750.000.00) S (750.000.00) $ (250.000.00) S (250.000.00) $ (250.000.00) Difference (Overfiinded) Underfiinded S (446.242.63) S (343.399.69) $ (177.547.48) S (87.014.48) S (78.837.73)
The pledged deposits are stated at cost, which approximates market value. Under state law, these deposits must be secured by federal deposits insurance or the pledge of securities owned by the fiscal agent bank. The market value of the pledged securities plus the federal deposit insurance must at all times equal the amoimt of deposit within the fiscal agent. These securities are held in the name ofthe pledging fiscal agent bank in a holding or custodial bank that is mutually acceptable to both parties.
The insurance coverage of public unit accounts depends upon the type of deposit and the location of the insured depository institution. All time and savings deposits owned by a public unit and held by the same official custodian in an insured depository institution within the State in which the public unit is located are added together and insured i^ to $250,000. Separately, all demand deposits owned by a public unit and held by the same official custodian in an insured depository institution within the State in which the public unit is located are added together and insured up to $250,000. For the purpose of these mles. the term "savings deposits" includes NOW accounts, money market deposit accounts, but does not include interest-bearing demand deposit accounts. The term "demand deposits" mean deposits payable on demand and for which the depository institution does not reserve the right to require advance notice of an intended withdrawal.
The FDIC issued an updated description ofthe explanation of savings deposits as follows: (The insurance coverage of public unit accounts depends upon the type of deposit and location ofthe insured depository instimtion. All time and savings deposits owned by a public unit and held by the same official custodian in an insured depository institution within the state in which the public unit is located are added together and insured up to $250,000. Separately, all demand deposits owned by the public unit and held by the same offrcial custodian in an insured depository institution within the state in which the public unit is located are added together and insured up to $250,000. For the purpose of these mles. the term "savings deposits" includes NOW accounts, money market deposit accounts, and other interest-bearing checking accounts.)
Even though the pledged securities are considered uncollaterialized (Category 3) under the provision of GASB Statement 3, R. S. 39:1229 imposes a statutory requirement on the custodial bank to advertise and sell the pledged securities within 10 days of being notified by the municipality that the fiscal agent has failed to pay deposited fimds upon demand.
INVESTMENTS
The govemment's investments are categorized as either (1) insured or registered or for which the securities are held by the govemment or his agent in the govemment's name, (2) uninsured and unregistered for which the securities are held by the broker's or dealer's tmst department or agent in the govemment's name, or (3) uninsured and unregistered for which the securities are held by the broker or dealer, or by its tmst department or agent, but not in the govemment's name.
-20- TOWN OF FARMERVILLE FARMERVILLE, LOUISI ANA NOTES TO FINANCIAL STA'FEME T^T S JUNE 30, 2013
NOTE # 2 - CASH AND INVESTMENTS CONTINUED
CATEGOR JES CARRYING JUNE 30. 2013 1 2 3 AMOUNT Govemment Securities Savings $ 685,932.11 S .00 $ .00 $ 685,932.11 Certificates of Deposit 90 Days or Less 1,359,215.48 $ .00 $ .00 1,359,215.48 Over 90 Days 380,043.82 .00 .00 380,043.82 Total Investments $ 2.425.191.41 $ $ .00 $ 2.425.191.41
The State requires collateral pledged for deposits to be held in the govemment's name by the trust department. The trust department reviews collateral pledged for compliance. Substantially all deposits matured in June 2013, therefore, interest was not accmed on the certificates of deposits.
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 ofthe current period. For this purpose, the govemment considers revenues to be available if they are collected within 60 days ofthe end ofthe current fiscal period. Property taxes, franchise taxes, licenses, and interest associated within the current fiscal period are considered to be susceptible to accmal and so have been recognized as revenues ofthe current fiscal pen'od. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue ofthe current period. All other revenueitem s are considered to be measurable and available only when cash is received by the government.
Note: The certificate of deposits 90 days or over all matured in July 2013 and the Town considers these funds to be cash or cash equivalents.
-21- TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA NOTES TO FINANCL\L STATEMENTS JUNE 30. 2013
NOTE # 3 - RECEIVABLES/ALLOWANCE FOR DOUBTFUL ACCOUNTS
Receivables at June 30, 2013 consist ofthe following:
CAPITAL DEBT FIRE AND SPECL\L REVENUE PROJECTS SERVICE 2013 GOVERNMENTAL ACnVITlES GENERAL POLICE SALES TAX RECREATION FUND FUNDS TOTAL RECEIVABLES Franchise Taxes $ 18,043.68 $ .00 $ .00 $ .00 $ .00 S .00 $ 18.043.68 Licenses and Taxes 410.00 .00 .00 .00 .00 .00 410.00 State of Louisiana - Beer Tax 1,787.77 .00 .00 .00 .00 .00 1,787.77 Union Parish Police Jury 549.00 .00 .00 .00 .00 .00 549.00 Advalorem Taxes 194.77 22,251.70 .00 .00 .00 .00 22,446.47 Sales Taxes .00 40,255.81 80.511.93 40,255.81 .00 .00 161.023.55 Miscellaneous 80.00 .00 .00 .00 .00 .00 80.00 Total Receivables 21.065.22 $ 62.507.51 $_ .00 S .00 $ 204.340.47
RECEIPTS/DISBURSEMENTS OTHER DEPARTMENTS Water Department $ 14,747.59 $ .00 $ .00 $ .00 $ .00 $ 13.900.00 $ 28.647.59 Fire Department 45,897.31 (45,897.31) .00 .00 .00 .00 .00 2002 Sales Tax _ (8.083.81) .00 9,900.00 8.083.81 .00 .00 9.900.00 Net Other Departments $ 52.561.09 $ (45,897.31) 9.900.00 8.083.81 $ .00 $ 13.900.00 $ 38,547.59
NET GOVERNMENTAL ACTIVITIES 73.626.31 $ 16.610.20 $ 90.411.93 $ 48.339.62 $ .00 $ 13.900.00 $ 242.888.06
BUSINESS TYPE ACTIVITIES Customer Receivables 209,682.98 Allowances for Bad Debts (8.913.25) NET BUSINESS TYPE ACTIVITIES $ 200.769.73
Allowances for doubtful accounts for the Proprietary Fund - Water/Scwer receivable accounts is based on the collectibility of outstanding receivables. Aged Accounts Receivable Water Customers: DAYS DAYS TOTAL CURRENT 30-60 OVER 60 June 30, 2013 $ 209.682.98 174.725.70 34.500.82 456.46
-22- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30. 2013
NOTE # 4 - UTILITY RATES
Utility rates were increased on September 9,2013. The new rates for water, sewer and garbage are as follows:
I. RESIDENTIAL COMMERCIAL ]INCREAS E INCREASE WATER CURRENT 09/09/13 CURRENT 09/09/13 First 2,000 GaUons $ 10.00 $ 17.00 $ 17.50 r 25.00 Over 2,000 Gallons Per 1,000 Gallons 3.00 .00 3.00 .00 Per 2,000 Gallons .00 4.00 .00 4.00 Minimum Fee 25.00 33.00
SEWER Based on water usage Per 1,000 Gallons s 3.00 $ .00 S 3.00 $ .00 Inside City Limits Per 1,000 Gallons .00 4.00 .00 4.00 Outside City Limits .00 5.00 .00 5.00
GARBAGE $ 10.00 s 10.00 s 25.00 s 25.00
RECONNECT FEE $ 2.00 s 2.00 $ 2.00 $ 2.00
DUMPSTER 40 Cu Yd-Per Pull s 150.00 8 Cu Yd - Per Container $ 25.00 Plus IX Week 50.00 Plus 2 X Week 100.00
6 Cu Yd - Per Container s 20.00 Plus 1 X Week 40.00 Plus 2 X Week 80.00
4 Cu Yd - Per Contamer $ 15.00 Plus IX Week 25.00 Plus 2 X Week 50.00
COMPACTOR s 150.00 - 250.00
TAPPING FEE $ 250.00
II. Any full time employee, council member, firemen, and the mayor receive a preferred rate for utilities. Based on the approved rate schedule: INCREASE CURRENT 09/09/13
Water s 10.00 $ 17.00 Sewer 3.00 4.00 Garbage 10.00 10.00 i= 23.00 ^ 31.00 III. The Town of Farmerville also has an industrial rate of $2.00 per 1,000 gallons of water used. The Poultry Plant receives the industrial rate of $2.00. The Union Parish Police Jury Jail has an industrial rate of $2.00. Industrial rate customers do not receive a minimum fee charge.
-23- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30. 2013
NOTE # 5 - PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of January 1. Tax notices are usually mailed during November each year and become delinquent after December 31, ofthe year. The delinquent taxes are sold each year, therefore, an allowance for uncollectible was not recorded.
For the Year Ended June 30,2013, taxes were levied on property with assessed valuations totaling $23,291,040 for 2013 and were dedicated as follows:
2013 2013 General Fund 8.80 Mills $ 218,235.22 Dedicated Fund - Fire Dept. 10.22 Mills 250,590.96 Total Taxes Levied L 468.826.18 Dedicated Funds - Area Fire Protection District 5_ 261.715.32 Payments in Lieu of Taxes 5- _Lm53 A recap ofthe largest assessment is as follows:
ASSESSED TAX VALUE AMOUNT Community Trust Bank $ 1,010,360.00 $ 19,217.00 Wal-Mart 740,420.00 14,228.00 Claibome Electric 618,440.00 11,763.00 Fannerville Motors 365,510.00 6,952.00 Marion State Bank 259,860.00 4,942.00 Preaus Motors 259,720.00 4,939.00 Union Village 250,000.00 4,755.00 HCR Louisiana Properties 231,350.00 4,400.00 First National Bank 215,010.00 4,089.00 Dozier Creek . 173,970.00 3,309.00 Deloutre Properties 133,080.00 2,341.00 Totals $ 4,257,720.00 $ 80,935.00
The Town bills and collects its own property taxes using the assessed values determined by the Union Parish Tax Assessor, as follows:
Levy Date August 13,2012 Millage Rates Adopted August 13. 2012 Tax Bills Mailed November 15, 2012 Due Date December 31, 2012 Lien Date January 1, 2013
State law requires the Town to collect property taxes in the calendar year in which the assessment is made. Property taxes become delinquent January 1 ofthe following year.
NOTE # 6 - LONG-TERM DEBT
The govemment issues general obligation bonds to provide funds for the acquisition and constmction of major capital facilities. General obligation bonds have been issued for both general goverrunent and proprietary activities. These bonds therefore are reported in the proprietary fiinds if they are expected to be repaid from proprietary revenues. -24- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013
NOTE # 6 - LONG-TERM DEBT CONTINUED
General obligation bonds are direct obligations and pledge the fiill faith and credit ofthe govemment. These bonds generally are issued as 25-year serial bonds, except for refunds in issues, with equal amount of principal maturing each year. The Town did not have any general obligation bonds.
The excess fimds fix)m general obligation bonds were transfened to the general fimd to be used as restricted fimds. The funds not expended are shown as restricted fimds in the general fund equity.
Revenue Bonds
The govemment also issues bonds where the govemment pledges income to pay debt service. A $.01 sales tax is pledge to pay these revenue bonds.
In February 2002. $2,900,000 of revenue bonds were issued for constmction of a recreation center and street improvements. An additional sales tax of 1/2 of 1% sales tax was approved for payment of these bonds.
The 2002 sales tax bonds were paid off and a new bond issue 2012 bonds were issued in the amount of $2,575,000. The new bonds interest rate ranges from 1% to 3.95%, which replaces the interest rate of 4.25%.
2010 Revenue Bonds
The Town received $500,000 of revenue bonds in June 2010. These bonds were used for the street constmction cost on Louisiana Highway 2. The bonds are payable over 20 years with an interest rate of 4.95%.
USDA Loan
The USDA loan was for purchase of equipment for the street department with the use ofthe USDA grant for the purchase of equipment for the water department. The total loan was $269,100 and the grant was for $144,900. The monthly payments are $2,008 with payments starting on May 10, 2011. The interest rate is 4.13%. The bonds are payable from the sales tax fund, with the water department payment ofthe excess ofthe equipment purchase over the grant of $13,900.
Bancomsouth - Lease Purchase
The Town purchased a garbage tmck with a 3 year lease purchase agreement. The monthly payment is $1,630.98 per month for 36 months with a balloon payment of $100,000.
Outstanding Revenue Bonds and Lease Purchase balances at June 30, 2013 are as follows:
INTER FST INTEREST PURPOSE RATES — PAID 2013 2013 PROPRIETARY FUND Revenue Bonds 4.95% L 18,995.50 $ 370,000.00 GOVERNMENTAL FUNDS Bancorpsouth - Lease Purchase 3.39% $ 3,852.19 $ 105,077.49 USDA 4.13% 7,788.91 239,622.38 Revenue Bonds-2010 4.95% 19.965.00 455,000.00 Revenue Bonds-2012 1.00% - 3.95% 58,028.22 2,450,000.00 Total Govemmental Funds L 89,634.32 $ 3,249,699.87 TOTALS L 108.629.82 $ 3.619.699.87 •25- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013
NOTE # 6 - LONG-TERM DEBT CONTINUED
GOVERNMENTAL FUNDS
PRINCIPAL AMOUNTS BANCORP UTOJTIES RECREATION SOUTH INTEREST REVENUE INTEREST AND INTEREST REVENUE INTEREST LEASE INTEREST USDA YEAR RATE BONDS RATES STREETS RATES BONDS RATES PURCHASE RATES NOTES 2014 4.95% $ 15,000.00 1.30% $ 135.000.00 4.95% $ 20,000.00 3.39% $ 105,077.49 4.125% $ 14,483.41 2015 4.95% 15,000.00 1.60% 140.000.00 4.95% 20.000.00 - .00 4.125% 15.09227 2016 4.95% 15,000.00 1.90% 145,000.00 4.95% 20.000.00 - .00 4.125% 15.726.81 2017 4.95% 15,000.00 2.20% 150,000.00 4.95% 20,000.00 - .00 4.13% 16.387.86 2018 4.95% 20.000.00 2.50% 155.000.00 4.95% 20,000.00 - .00 4.13% 17,076.82 2019-2023 4.95% 2.50% - 100,000.00 3.30% 880.000.00 4.95% 120.000.00 - .00 4.125% 96.775.14 2024 - 2028 4.95% 3.45% - 130,000.00 3.95% 845,000.00 4.95% 160.000.00 - .00 4.125% 64.080.07 2029 - 2030 4.95% 60,000.00 . .00 4.95% 75.000.00 - .00 - .00 Totals $ 370.000.00 $ 2.450.000.00 S 455.000.00 $ 105.077.49 5- 239.622 J8 BOND PRINCIPAL AND INTE REST BANCORP UTILITIES RECREATION SOUTH INTEREST REVENUE INTEREST AND INTEREST REVENUE INTEREST LEASE INTEREST USDA YEAR RATE BONDS RATES STREETS RATES BONDS RATES PURCHASE RATES NOTES 2014 4.95% $ 33,315.00 1.30% $ 208.650.00 4.95% $ 42,522.50 3.39% S 106,523.92 4.125% $ 24,096.00 2015 4.95% 32,572.50 1.60% 211,895.00 4.95% 41,532.50 - .00 4.125% 24,096.00 2016 4.95% 31,830.00 1.90% 214.655.00 4.95% 40,542.50 - .00 4.125% 24.096.00 2017 4.95% 31,087.50 2.20% 216,900.00 4.95% 39,552.50 - .00 4.125% 24,096.00 2018 4.95% 35,345.00 2.50% 218,600.00 4.95% 38,562.50 - .00 4.125% 24.096.00 2019-202! 4.95% 2.50% - 161.875.00 3.30% 1.128,595.00 4.95% 196.477.50 - .00 4.125% 120,480.00 2022 - 2026 4.95% 3.45% - 164,650.00 3.98% 927,957.50 4.95% 203,065.00 - .00 4.125% 67,985.48 2027 - 2030 4.95% 64.755.00 - .00 4.95% 80.692.50 - .00 4.125% .00 Totals $ 555.430.00 J 3.127.252.50 S 682.947.50 L 308.945.48
-26- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013
NOTE # 6 - LONG-TERM DEBT CONTINUED
Changes in Long-Term Liabilities Diuing the year ended June 30,2013, The following changes occurred in liabilities reported in the general long-term debt accoimt group. Revenue Bonds Debt Service requirements and Lease Purchase requirements are listed below:
JULY 1.2012 ADDITIONS REDUCTIONS JUNE 30. 2013 Proprietary Fimd Revenue Bonds $ 385.000.00 $ ^ $ (15,000.00^ $ 370.00000 Govemmental Funds Sales Tax Debt - Streete and Recreation Center $ 2,575,000.00 $ .00 $ (125.000.00) 2,450.000.00 Revenue Bonds - 2010 470,000.00 .00 (15.000.00) 455,000.00 BancorpSouth - Lease Purchase 120,796.98 .00 (15,719.49) 105,077.49 USDA Loan 253,521.47 .00 (13,899.09) 239.622.38 $ 3,419.318.45 $_ m S (169,618.58) $ 3,249,699.87
GRAND TOTAL $ 3.804.318.45 M $ (184.618.58) $ 3.619.699.87
NOTE # 7 - CAPITAL ASSETS
Capital Asset activity for the year ended June 30, 2013 is as follows:
BEGINNING ENDING GOVERNMENTAL ACTIVITIES BALANCE ADDITIONS RETIREMENT BALANCE Non-Depreciable Assets: Land $ 226,468.51 $ 154,717.40 $ .00 S 381,185.91 Depreciable Assets: Buildings 2,216,560.15 .00 .00 2,216.560.15 In^irovements Other Than Buildings 1,139,920.85 .00 .00 1,139,920.85 Machinery and Equipment 4,559,028.88 160.841.43 .00 4.719,870.31 Infrastructure 2,411.306.23 892.787.90 .00 3,304.094.13 Totals at Historical Cost l_ 10,553,284.62 $_ 1,208,346.73 $_ .00 1- 11,761,631.35 Less: Accumulated Depreciation Buildings s 409,872.01 $ 47,717.22 $ .00 S 457,589.23 Improvements 338,685.33 32,443.76 .00 371,129.09 Machinery and Equipment 2,290,661.71 334.678.70 .00 2.625,340.41 Infrastructure 526.651.68 88,926.60 .00 615.578.28 Total Accumulated Depreciation £ 3.565.870.73 503.766.28 $1 .00 4.069.637.01 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS NET K 6.987.413.89 I 704.580.45 L .00 $ 7.691.994.34 BUSINESS-TYPE ACTIVITIES Non-Depreciable Assets: Land $ 25.752.00 s .00 s .00 $ 25,752.00 Depreciable Assets: Sewer Departnunt 6,983.484.65 156,892.78 (202,100.49) 6,938,276.94 Water Department 6.879.270.49 1.211.253.24 (862,138.57) 7,228,385.16 Totals at Historical Cost H 13.888.507.14 L_ 1,368.146.02 E (1,064,239.06) r 14,192.414.10
•27- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013
NOTE # 7 - CAPITAL ASSETS CONTINUED
BEGINNING ENDING BALANCE ADDITIONS RETIREMENT BALANCE Less Accumulated Depreciation Water System 2,649,592.36 189.490.14 E (109,349.90) 2.729,732.60 Sewer System 3.156.602.62 131.558.91 (202.100.49) 3.086.061.04 Total Accumulated Depreciation 5.806.194.98 321.049.05 $ (311.450.39) $ 5.815,793.64 BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS NET ^^ S 8.082.312.16 S 1.047.096.97 £ (752.788.67) $ 8.376.620.46
In proprietary funds, the following estimated useful lives are used to compute depreciation:
Investments 25 - 60 Years Equipment 10-20 Years Vehicles 4 - 5 Years
FASB-34 (Capitalization of Interest Costs) requires that interest expenditures incurred during construction of assets be capitalized. FASB-62 (Capitalization of Interest Cost in Simations Involving Certain Tax-Exempt Borrowings and Certain Gifts and Grants) concludes that constructed assets financed with the proceeds of tax-exempt debt (if those funds are extemally restricted to finance the acquisition of the asset or used to service the related debt) should include capitalized interest only to the extent that interest cost exceeds interest eamed ofthe tax-exempt borrowing. No interest costs were capitalized.
NOTE # 8 - INTERFUND ASSETS/LIABILITIES
All interfund payables/receivables are required to be paid within one year except the sewer/water receivable/payable.
DUE FROMA-O OTHER FUNDS
RECEIVABLE FUND PAYABLE FUND AMOUNT
GOVERNMENTAL AdTVITIES / BUSINESS-TYPE ACnVITIES Capital Projects Fund Water Department S 13,900.00 General Fund - Garbage Water - Garbage Fees 14,747.59 Sales Tax Sewer Department - Loan 9.900.00 Total S 38,547.59 GENERAL FUND INTERCOMPANY Recreation Sales Tax General Fund 8,083.81 General Fund Fire Department 45,897.31 WATER - SEWER DEPARTMENT INTERCOMPANY Water Department Sewer Department - Loan 185.729.80 Totals L 278.258.51 TRANSFERRED FROM TRANSFERRED TO PURPOSE AMOUNT Fire District Fire Department Property Taxes in Excess of Required Deposit s 241,715.32 General Fund Police Department ExpendiUires 281.813.16 Fire Department Volunteer Fire Department 2% Monies 37,817.39 Sales Tax - Recreation Debt Service Fund Bonds 254,188.73 General Fund Debt Service Fund Lease Purchase 19,571.67 Sales Tax Debt Service Fund S500 Bonds 71,265.00 Sales Tax Debt Service Fund USDA Notes 26.488.00 Sales Tax Garbage Department Garbage Expenditures 45.250.00 L 978.109.27 -28- TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30. 2013
NOTE # 9 - COMPENSATION
The amount paid the mayor and council during the audit year is as follows:
Mayor AMOUNT Salary and Expenses Mayor Stein Baughman $ 29,199.82 Travel Expenditures 6.535.01 Total $ 35.734.83 Police Chief (a) Bim Culbertson $ 2.400.00 Alderman Jerry Taylor $ 10,454.20 Lavelle Maine 8,694.20 Joseph G. Jones 4,252.10 Wayne Jones 8,554.20 Gerome Nation 10,404.20 Caroline Gatson 4,252.20 Total $* 46.611.10
(a) The Police Chiefis also the elected Marshall. In that capacity he receives $200 a month. He also receives a salary for his position as chief of police.
NOTE #10 - EMPLOYEE RETIREMENT
Substantially all employees ofthe Town of Farmerville are members ofthe following statewide retirement systems: Municipal Employees Retirement System of Louisiana, Municipal Police Employees Retirement System of Louisiana, or Firefighters Retirement System of Louisiana and Social Security. These systems are multiple-employer public employee retirement systems(PERS), controlled and administered by separate boards of trustees. Pertinent information relative to each plan as follows:
A. Municipal Emplovees Retirement Svstem of Louisiana (Svstem) - The System is composed of two distinct plans. Plan A and Plan B. with separate assets and benefit provisions. All employees ofthe municipality were members of Plan B. In July 2002, the Town elected Plan A.
Normal Retirement eligibility and benefit computation
A member of Plan A is eligible to retire and receive normal retirement benefits if:
1. He has credit for at least twenty-five years of Plan A service, regardless of his age; or,
2. He has credit for at least ten years of Plan A service and is at least the age of sixty years
The monthly Maximum Plan A normal retirement benefit is an amount equal to three percent ofthe member's final compensation multiplied by his years of credited service (three percent multiplied by each year of credited service multiplied by final compensation), provided that:
-29- TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30. 2013
NOTE # 10 - EMPLOYEE RETIREMENT CONTINUED
1. A member who held an elective office in a participating municipality is paid an additional monthly benefit equal to one-half of one percent ofthe member's finalcompensatio n multiplied by each year of such elective service (one-half of one percent multiplied by each year of such elective service multiplied by final compensation); and
2. For an employee who was a member only ofthe supplemental plan prior to the revision date, the monthly benefit eamed for service credited prior to the revision date will be determined on the basis of one percent of final compensation plus two dollars per month for each year of service credited prior to the revision date, and three percent of final compensation for each year of service credited after the revision date.
For example, the monthly retirement benefit of a member who has credit for twenty-seven years of service with a final compensation (see definition) of $ 1,500 would be computed as follows: 3% x 27 x $ 1,500 = $ 1,215. If this member had credit for thirty years of service his benefit would be $ 1,350 (3% x 30 x $ 1,500 = $ 1,350).
The monthly benefit, as it may be increased by cost-of-living adjustments, is paid for the life ofthe retiree and, if an optional mode of benefit payments is selected (see Mode of payment options), a monthly benefit, payable upon the death ofthe retiree, will be paid to the option beneficiary for the life ofthe beneficiary.
Applications for normal retirement should be submitted to the system at least six weeks prior to the planned retirement date. A copy ofthe member's birth certificate and, if an optional mode of benefit payments is selected (see Mode of payment options), a copy ofthe option beneficiary's birth certificate must be attached to the application of retirement.
If a retired member dies without having received in retirement benefits an amount equal to his accumulated employee contributions and if he is survived by no person eligible for any other benefits, the difference between the amount of his accumulated employee contributions and the amoimt he received in retirement benefits will, upon application, therefore, be paid to his designated beneficiary or, if none, his estate.
Early Retirement eligibility and benefit computation
A member of Plan A who has credit for twenty years of Plan A service, exclusive of military service, may retire at any age. However, the benefits paid to such a member must be actuarially reduced from the eariiest age that he would otherwise have become eligible for a normal retirement if he had continued in service to that age and such a member may not participate in the Deferred Retirement Option Plan.
Disability retirement eligibility and benefit computation
A member of Plan A is eligible to retire and receive disability retirementbenefit s if he has credit for at least five years of service, is not eligible for normal retirement benefits, and suffers disability.
The monthly Maximum Plan A disability retirement benefit is the lesser of (1) an amount equal to three percent ofthe member's finalcompensatio n multiplied by his years of service (three percent multiplied by each year of credited service multiplied by final compensation), but not less than forty-five percent ofthe member's final compensation, or, (2) an amount equal to what the member's normal retirement benefit would be based on his current final compensation, but assuming he remained in continuous service until his eariiest normal retirement age and using the retirement benefit computation factors which would be applicable to his normal retirement. An applicant for disability retirement may select an optional mode of benefit payments (see Mode of payment options).
•30- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30. 2013
NOTE # 10 - EMPLOYEE RETIREMENT CONTINUED
Survivor benefit eligibility and computation
Upon the death of a member of Plan A who has credit for five or more years of service and who is not eligible for normal retirement benefits, the following survivor benefits, upon application therefore, are payable:
1. A surviving spouse with minor children will be paid a monthly benefit equal to sixty percent ofthe member's final conq)ensation, such benefit to continue as long as the spouse lives or until no child in his care satisfies the definition of minor child. A surviving spouse is deemed to have minor children for as long as at least one minor child is legally under his care. The surviving spouse must have been married to the deceased member for at least twelve months preceding the member's death to be eligible for survivor benefits.
2. A surviving minor child with no surviving spouse will be paid a monthly benefit equal to thirty percent ofthe member's final compensation; however, total payments may not exceed sixty percent ofthe member's final compensation. If more than two minor children survive the member, the benefit payable at any time to each child is an amount determined by dividing the total amount payable (sixty percent ofthe member's final compensation) by the number of children the eligible for a benefit. Minor child survivor benefits may only be applied for and paid to the person who has legal care, custody, and control of minor child.
A member who is eligible for normal retirement at the time of his death and who leaves a surviving spouse will be deemed to have retired and selected the Option No. 2 mode of benefit payments on the date of his death; such benefits, upon application therefore, are paid in lieu of any other survivor benefits. Upon the death of any member who is eligible for normal retirement at the time of his death and who leaves surviving minor children but no surviving spouse, an amount equal to thirty percent ofthe member's final compensation shall be paid to each minor child each month, not to exceed an aggregate of sixty percent. If more than two minor children survive such a member, the benefit payable at any time to each child is an amount determined by dividing the total amount payable (sixty percent ofthe member's final compensation) by the number of children then eligible for a benefit. Minor child survivor benefits may only be applied for and paid to the person who has legal care, custody, and control of minor child.
A copy ofthe member's and survivor's marriage license must be attached to the application for survivor benefit's if the applicant is a surviving spouse of a member. A copy ofthe minor child's birth certificate and applicable custody judgment must be attached lo the application for survivor benefits if the application is filed onbehalf of a surviving minor child of a member.
If only one person is eligible for survivor benefits that person may apply for and be paid a refund of the deceased member's accumulated employee contributions in lieu of payment of survivor benefits. If two or more persons are eligible for survivor benefits and they all agree to do so, they may apply for and be paid a refund ofthe deceased member's accumulated employee contributions in lieu of payment of survivor benefits. The survivor(s) must notify the board in writing ofthe decision to request a refund in lieu ofthe survivor benefits. Such refund payments are subject to the same provisions as are other refimdpayments .
Employee contributions
Each member of Plan A shall contribute 9.25% of his earnings from each and every payment of eamings.
Each participating employer of Plan A shall contribute an amount equal to a percentage of each employee's eamings as determined each year by the Public Retirement Systems' Actuarial Committee. However, subject to certain restrictions, the board of tmstees may maintain the employer contribution rate for the next fiscal year at the same rate as the current year if the rate determined by the Public Retirement Systems' Actuarial Committee for the next fiscal year is less that the rate for the current year.
-31- TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013
NOTE # 10 - EMPLOYEE RETIREMENT CONTINUED
Contributions to the System include one-fourth of one per cent ofthe taxes shown to be collectible by the tax rolls of each municipality. State stame requires covered employees to contribute a percentage of their salaries to the System. As provided by Louisiana revised Statute 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.
B. Municipal Police Emplovees Retirement System of Louisiana (System)-AII full-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 per cent of their final-averagesalar y 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 previously and receive the benefit accmed to their date of termination. The System also provides death and disability benefits. Benefits are established by state statute.
State statue requires covered employees to contribute a percentage of their salaries to the system. As provided by Louisiana Revised Statute 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 year.
C. Firefighters Retirement Svstem of Louisiana-Membership in the Louisiana Firefighters Retirement System is mandatory for all full-time firefighters employed by a municipality, parish, or fire protection district that did not enact an ordinance before January 1,1990, exempting itself from participation in the System. Employees are eligible to retire at or after age 55 with at least 12 years of creditable service or at or after age 50 with at least 20 years of creditable service. Upon retirement, members are entitled to a retirement benefit, payable monthly for life, equal to 3 1/3 per cent of their final-averagesalar y for each year of creditable service, not to exceed 100 per cent of their final-averagesalary . Final-average salary is the employee's average salary over the 39 consecutive or joined months that produce the highest average.
Employees who terminate with at least 12 years of service and do not withdraw their employee contributions may retire at or after age 55 (or al or after age 50 with at least 20 years of creditable service at termination) and receive the benefit accmed to their date of termination. The System also provides death and disability benefits. Benefits are established by state statute.
State stame requires covered employees to contribute a percentage of their salaries to the System. Employer contributions are determined armually based on results ofthe valuation ofthe prior fiscalyea r with adjustments for any dedicated tax monies or appropriated fimds.
The following provides certain disclosures for the municipality and the retirement systems that are required by GASB Codification Section P20-129.
•32- TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA NOTES TO FINANCIAJ L STATEMENTS JUNE 30. 2013
NOTE # 10 - EMPLOYEE RETIREMENT CONTINUED
YEii0 1 ENDED JUNE 30.2013
% EMPLOYEES % POLICE % FIR EFIGHTERS Total Current Year Payroll $ 1.179.846.67 $ 478.566.29 72.085.94 Total Current Year Covered Payroll $ 899.301.62 $ 36.572.00 5 62.954.55 Contributions: Required by statute: Employees 9.25% $ 77,192.03 10.00% S 3,649.64 10.00% S 6,285.48 Employer 17.00% 157.310.50 31.00% 11,345.61 24.00% 15,088.82 Total $ 234.502.53 S 14.995.25 $ 21.374.30
NOTE #11- RELATED P ARTYTRy \NSACmONS
The Town of Farmerville did not have any related party transactions during the fiscal year ended June 30, 2013.
NOTE #12- LEGAL COMPLUVNCE - BUDGET
The budget for the year ended June 30, 2013 was adopted in June 2012 and revised June 2013. The budgets were prepared based on generally accepted accounting principles (GAAP), except depreciation is not budgeted. Budgets were not prepared for the Volunteer Fire Department or the Farmerville Fire District funds. The majority ofthe Fire District Funds are included with the Fire Department budgets. Budgets are adopted as totals rather than line items.
INCOME EQUITY EXPENSE TOTAL General Budget - Budget $ 1,446.000.00 S .00 $ (1,374,850.00) S 71.150.00 -Acnial 1.254,261.57 151,574.31 (1.405,835.88) .00
Fire Department - Budget 520,000.00 .00 (389.200.00) 130,800.00 -Achial 565,017.23 .00 (251,463.01) 313,554.22
Police Department - Budget 926,500.00 .00 (906,850.00) 19,650.00 -Actual 941,445.93 10.473.52 (951.919.45) .00
Special Revenue Sales Tax - Budget 969,570.00 .00 (823.700.00) 145,870.00 -Actual 979.704.78 .00 (831,794.07) 147.910.71
Special Revenue Recreation - Budget 501,500.00 4,850.00 (506,350.00) .00 -Actual 507,507.18 25,179.98 (532,687.16) .00
Water Department - Budget 1,090,000.00 20,760.00 (1,110,760.00) .00 -Actual 1,167,924.43 .00 (1,046,142.90) 121,781.53
Sewer Department - Budget 372,000.00 .00 (368.300.00) 3,700.00 -Acnial 326.888.80 36.541.01 (363.429.81) .00
TOTAL - Budget $ 5,825,570.00 S 25,610.00 $ (5,480,010.00) $ 371,170.00 -Actual 5.742.749.92 223.768.82 (5,383.272.28) 583.246.46 - Difference $ (82.820.08) S 212.076.46
The water and sewer department budget did not include the expenses for depreciation. These amounts were reduced fi-om the actual per the financial statements. The capital projects fimds for water were accounted for in the capital project fimd and then the assets are transferred to the water department. These transactions were not accounted for in the sewer budget, therefore, they are deleted from the amounts above.
•33- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013
NOTE # 12 - LEGAL COMPLIANCE - BUDGET - CONTINUED
The Town follows these procedures in establishing the budgetary data reflected in the financialstatements .
1. The Town Clerk, with inputs from the Mayor and all department heads, prepares the proposed budget information for the general and major special revenue funds. Once reviewed and approved by the Town Clerk and Mayor, the budgets for each fiscalyea r are submitted to the Town Coimcil for approval. This is done no later than fifteen days prior to the Town Coimcil meeting in June each year.
2. A summary ofthe proposed budget is published and the publtc 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 the publication ofthe call for the hearing.
4. After holding the public hearing and completion of all actions necessary to finalize and implement the budget, the budget is adopted through passage of an ordinance prior to the commencement ofthe fiscal year for which the budget is being adopted.
5. Budgetaiy amendments involving the transfer of funds from one department, program, or function to another or involving increases in expenditures resulting from revenues exceeding amounts estimated require the approval ofthe Town Council.
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) except as stated on page 33. Budgeted amounts are as originally adopted or as amended by Town Council.
NOTE # 13 - ON - BEHALF PAYMENTS
Certain Town employees in the Town's police and fire departments receive supplemental pay from the State of Louisiana. In accordance with GASB Statement No. 24, the Town has recorded revenues and expenditures for these payments in the General Fund. Revenues under this arrangement total $ 75,207.50.
NOTE # 14 - SUMMARY DISCLOSURES OF SIGNIFICANT CONTINGENCIES
At June 30,2013 the Town of Farmerville did not have a significant contingencies, the final review as made at the audit committee meeting on December 9,2013.
NOTE # 15 - PROPRIETARY FUND SEGMENT INFORMATION
The Town maintains one Enterprise Fund which provides water and sewer services. Segment information for the year ended June 30, 2013 is as follows:
WATER SEWER TOTAL Cun-ent Assets $ 472,876.77 $ 25,697.62 S 498,574.39 Non-Current Assets 293,723.50 412,993.39 706,716.89 Capital Assets, Net 4.524.404.56 3,852.215.90 8,376.620.46 Total Assets $ 5,291,004.83 $ 4.290,906.91 $ 9,581,911.74 Current Liabilities (62,887.09) S (37,810.62) $ (100,697.71) Payable from Restricted Assets (150,195.00) (21,526.00) (171,721.00) Long-Term Liabilities 18.795.24 (631.336.83) (612,541.59) Total Net Position $ 5.096.717.98 $ 3.600.233.46 $ 8.696.951.44
-34- TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30. 2013
NOTE #15 - PROPRIETARY FUND SEGMENT INFORMATION - CONTINUED
WATER SEWER TOTAL Net Investment in Capital Assets 4,524,404.56 3,852,215.90 8.376.620.46 Restricted .00 270.615.10 270.615.10 Unrestricted 572,313.42 (522,597.54) 49,715.88 Total Net Position $ 5.096.717.98 $ 3.600.233.46 $ 8.696.951.44
Operating Revenues: Water Sales and Service $ 1,096,458.15 .00 1,096,458.15 Sewer Sales and Service .00 323,933.43 323.933.43 Other 68,464.59 500.00 68,964.59 Total Operating Revenues $ 1,164,922.74 324,433.43 1,489,356.17 Operating Expenses (1,046,142.90) (344,434.31) (1,390,577.21) Depreciation (189.490.14) (131,558.91) (321,049.05) Operating (Losses) $ (70,710.30) (151,559.79) (222,270.09) Non-Operating Revenue/Expense 38,001.69 (16,540.13) 21,461.56 Transfers 351.694.51 .00 351,694.51 Change in Net Position 318.985.90 £ (168.099.92) $ 150.885.98
NOTE # 16 - STATEMENT OF CASH FLOWS FOR PROPRIETARY FUNDS
For purposes of this Statement of Cash Flows, for proprietary fimd types, all highly liquid investments, including restricted assets, with a maturity of three months or less when purchased are considered to be cash equivalents. The cash and cash equivalents as stated on the Statement of Cash Flows is as follows:
WATER SEWER TOTAL Unrestricted 250,730.04 $ 22,118.62 272,848.66 Restricted 293,723.50 412,993.39 706,716.89 Totals 544.453.54 L. 435.112.01 979.565.55
The segment information on the Statement of Cash Flows is as follows:
WATER SEWER TOTAL Cash Flows from Operating Activities 146,080.67 $ (15,898.93) $ 130.181.74 Cash Flows fi-omNon-Capita l Financing Activities (5,838.20) 11.064.00 5.225.80 Cash Flows from Capital and Related Financing Activities (71.770.06) 111,282.51 39,512.45 Cash Flows from Investing Activities 3.001.69 2,455.37 5,457.06 Net Increase (Decrease in Cash and Cash Cash Equivalents 71,474.10 108,902.95 180,377.05 Cash and Cash Equivalents - July 1 472.979.44 326.209.06 799,188.50 Cash and Cash Equivalents - June 30 544.453.54 S 435.112.01 979.565.55
NOTE #17- ECONOMIC DEPENDENCY
A large portion of the increase/decrease in water and garbage revenues are due to the agreement with the Poultry Processing Plant.
NOTE # 18 - SUMMARY DISCLOSURES OF SIGNIFICANT CONTINGENCIES
Risk Management handles all defense for the Town. The Town's attorney advises us that the Town has one lawsuit which are being handled by Risk Management. No estimate of damages has been determined. -35- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013
NOTE # 19 - RISK MANAGEMENT
The Town is exposed to riskso f 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.
NOTE # 20 - FUND BALANCE
The components of fund balance are as follows:
(30VERNMENTAL FUNDS NON- EXPENDABLE RESTRICTED ASSIGNED UNASSIGNED TOTAL Debt Service S 13.900.00 $ 180,292.24 $ .00 $ .00 $ 194,192.24 Fire Department 24.876.00 .00 751.368.07 .00 776.244.07 Fire Department - Volunteer .00 .00 80,618.11 .00 80.618.11 Fire Department - Fire District .00 .00 10,901.12 .00 10.901.12 Police Department 34.699.00 .00 41.098.84 .00 75.797.84 Recreation/Street Improvements 14,909.00 .00 466,053.46 ,00 480,962.46 Capital Projects Fund .00 152,400.73 .00 1.09 152,401.82 General Fund 28,022.00 .00 .00 76,757.98 104,779.98 Sales Tax 26.540.00 58.889.77 674.243.23 .00 759.673.00 Totals 1= 142.946.00 L 391.582.74 $ 2.024.282.83 $_ 76.759.07 $ 2.635.570.64 NOTE # 21 - CAPITAL PROJEC:rsFU i
See Schedule C-1 and D-1 for details ofthe Capital Projects Fund.
In 2011, the Town built a new street off of Louisiana 2. The project was being funded by a bond issue for $500,000. The Town received a USDA loan for Street Department equipment. The USDA grant was used for water department equipment. An addition to the Unionville Fire Station was financed by the State of Louisiana Facility Planning & Control. The State of Louisiana Miscellaneous State Aid Fund provided a $40,000 grant for improvements to LA 2 intersection. In 2012 the 2002 bonds were paid off with the sale ofthe 2012 bonds, >^ich are to be paid from the 2002 sales tax. The balance ofthe 2012 bonds are to be used for street improvements. The LCDBG funds were used for purchase of generators and improvements to the water system for the poultry plant.
ASSETS Cash in Banks 152,651.82 TOTAL ASSETS 152.651.82
LIABILITIES AND FUND EOUITY LIABILITIES Payables 250.00
FUND BALANCE Reserve for Capital Improvements $ 152.400.73 Unassigned 1.09 Total Fund Balance $ 152.401.82
TOTAL LIABILITIES AND FUND BALANCE $ 152.651.82
-36- TOV/N OF F/iRMERVILLE FARMERVILLE. LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30. 2013
NOTE # 21 - CAPITAL PROJECTS FUND - CONTINUED
RECEIPTS LCDBG Funds $ 351,694.51 Interest Income 671.81 Total Receipts $ 352,366.32
EXPENDITURES Glory Road Constmction $ 11,373.00 Equipment Purchases 351,694.51 Street Constmction 881,414.89 Administrative Costs 1,470.10 Refunds 1.186.67 Total Expenditures $1,247,139.17
OPERATING FINANCING SOURCES (USES) Operating Transfer In Town of Farmerville .00 Debt Service Fund Totals .00
EXCESS OF RECEIPTS AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER (USES) $ (894,772.85)
FUND BALANCE - JULY I 1,047,174.67
FUND BALANCE - JUNE 30 $ 152.401.82
NOTE # 22 - POST EMPLOYMENT BENEFITS
The Town of Farmerville provides continuing employee benefits for its employees who retired with the State Municipal Retirement System, the Police Retirement System and the Fire Retirement System. The Town of Farmerville provides health insurance through the Louisiana Municipal Risk Management Agency, 11 for each employee. Family coverage is available, but not paid by the Town. The Town is also providing life insurance and dental insurance for retirees.
The Town records the cost of these benefits as expenditures on a monthly basis. For the year ended June 30,2013, the total cost ofthe benefit to employees was $470,272.31. As of June 30,2013 the Town had no retiree benefits payable. These premiums are financed on a "pay-as-you-go" basis.
The Town was required to inrq>lement Govemmental Accounting Standards Board Statement No. 45 entitled "Accounting and Financial Reporting by Employers for Post Employment Benefits other than Pensions" (GASB 45). The major change under GASB 45 is to attribute the cost of post retirement benefits to the time which the employee is working for the employer. This standard does not require the funding of these benefits, but it does require recognizing the liability and expense in the fmancial statements. The Town is in the process of determining the cost of these benefits.
Plan Description. The Town of Farmerville medical and dental benefits are provided and made available to employees upon actual retirement. These benefits terminate at age 65.
-37- TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30. 2013
NOTE # 22 - POST EMPLOYMENT BENEFITS CONTINUED
The employees are covered by a retirement system whose retirement eligibility provisions are as follows:
The Town is the Municipal Employees Retirement System of Louisiana. The system is composed of two distinct plans. Plan A and B with separate assets and benefit provisions. The employees were members of Plan B, which has a 30 years service and retirement of any age after 30 years. The Town changed to Plan A in July 2002, which has 25 years of service or 10 years at age 60. The Fire and Police Retirement has 25 years of service at any age. 20 years at age 50 and 12 years at age 55. The employees do not contribute to the post employment benefits costs.
Funding Policy. The Town of Farmerville recognized the cost of providing post employment medical and dental benefits as an expense when the benefit premiums were due and thus financed the cost ofthe post employment benefits on a pay- as-you-go basis. Effective with the fiscal year begirming June 1, 2009, the Town of Farmerville were required to implement the Government Accounting Standards Board Statement Number 45, Accounting and Financial Reporting by Employers for Post Employment Benefits other than pensions (GASB45).
The Town had not implemented GASB 45 until June 30,2012. The previous year required amounts were implemented in 2012.
Aimual Required Contribution. The Town of Farmerville's Aimual Required Contribution (ARC) is an amount actuarially detemiined in accordance with GASB 45. The required contribution is the sum of the Normal Cost plus the contribution to amortize the Actuarial Accmed Liability (AAL). A level dollar, closed amortization period of 30 years (the maximum amortization period allowed by GASB 43/45) has been used for the post-employment benefits. The total Annual Required Contribution for the fiscal year beginning July 1,2012 is $315,375.00, as set forth below.
MEDICAL GOVERNMENTAL BUSINESS-TYPE ACmVITIES ACTIVITIES TOTAL Normal Cost 152,196.00 $ 52,353.00 $ 204,549.00 30-Year UAL Amortization Amount 81,859.00 28.967.00 _ 110.826.00 Annual Required Contribution (ARC) 234.055.00 $_ 81.320.00 $ 315.375.00
Net Post-employment Benefit Obligation (Asset). The table below shows the Town of Farmerville's net Other Post- employment Benefit (OPEB) Obligation (Asset) for the fiscal year ended June 30, 2013.
MEDICAL GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES TOTAL Beginning Net OPEB Obligation (Asset) July 1,2012 $ 286,938 .00 142.674.00 $. 429.612.00
Annual Required Contributions $ 231,560.00 80,459.00 $ 312,019.00 Interest on Net OPEB Obligation (Asset) 2,495.00 861.00 3.356.00 OPEB Cost $ 234.055.00 81.320.00 $ 315,375.00 Contribution .00 .00 .00 Current Year Retiree Premium .00 .00 .00 Change in Net OPEB Obligation $ 234.055.00 81,320.00 $ 315,375.00
Ending Net OPEB Obligation (Asset) June 30. 2013 i= 520.993.00 223.994.00 1 744.987.00
•38- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30. 2013
NOTE # 22 - POST EMPLOYMENT BENEFITS CONTINUED
Funded Status and Funding Progress. In the fiscal year ending June 30, 2012, the Town of FarmeTville made no contributions to its post employment benefits plan. The plan was not funded at all, has no assets, and hence has a funded ratio of zero. As of June 30,2013, the end ofthe fiscal year, the Actuarial Accmed Liability was $3,224,131.60, which is defined as that portion, as determined by a particular actuarial cost method (the Town of Farmerville used the Projected Unit Credit Cost Method), ofthe actuarial present value of post employment plan benefits and expenses, which is not provided by normal cost. Since the plan was not funded in fiscal years 2010/2011/2012, the entire actuarial accmed liability of $744,987.00 was unfunded.
Actuarial Accmed Liability (AAL) $ 3,224.131.63 Actuarial Value of Plan Assets .00 Unfunded Act. Accmed Liabilities (UAAL) $ 3,224,131.63 Funded Ratio (Act. Val. Assets/AAL) .00%
Covered Payroll (Active Plan Members) $ 1,260,584.72 UAAL as a Percentage of Covered Payroll 2.56%
Turnover Rate. The age-related tumover rates, were based on the percentage from GASB pronouncement tables, based on the age ofthe employee.
Post employment Benefit Plan Eligibility Requirements. The post retirements benefits are limited to the period from retirement until the employee qualifies for Medicare benefits at age 65. The benefits are payable based on the Municipal Retirement System retirement dates. See above note on Plan A and B retirement dates.
Investment Return Assumption (Discount Rate). GASB Statement 45 states that the investment return assumption should be the estimated long-teim investment yield on the investments that are expected to be used to finance the payment of benefits (that is, for a plan which is funded). The Town of Farmerville has not funded the post retirement benefits.
Health Care Cost Trend Rate. The expected rate of increase in medical cost was used at the increased rate of insurance premiums al June 30,2013.
Mortality Rate. The calculation did not use a mortality rate since the post retirement benefits terminate at age 65.
Method of Determining Value of Benefits. The "Value of Benefits" has been assumed to be the portion ofthe premium after retirement date expected to be paid by the employer for each retiree and has been used as the basis for calculating the actuarial present value of OPEB benefits to be paid. The medical rates provided are actual rates for active and retired before Medicare eligibility, so we have estimated the rates for retirees before Medicare as 100% ofthe actual rates for the retiree portion ofthe coverage (not dependents) for retirees until Medicare eligibility. Coverage ceases upon Medicare eligibility at age 65.
NOTE # 23 - SUBSEOUENT EVENTS
Subsequent events after the year end, and through Febmary 3,2014, the period the financial statements were available for the audit committee are as follows:
1. LCDBG grant for sewer rehab approved for $800,000. 2. Application for USDA loan of $2,200,000 zone water filtration system has not been approved. 3. Increase in Mayor's salaiy by 25%. 4. Increase in water rates - See note # 4 5. Application of $1,000,000 LCDBG grant for Foster Farms has not been approved.
•39- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA NOTES TO FINANCIAL STATEMENTS JUNE 30. 2013
NOTE # 24 - FUND CHANGES AND FUND BALANCES
Amounts for specific purposes by fund and fimd balance classifications for the year ended June 30.2013 are as follows:
CLASSIFICATION/FUND PURPOSE AMOUNT NON-SPENDABLE: General Fund Prepaid Items $ 28.022.00 Sales Tax - Recreation Prepaid Items 14,909.00 Non-major Funds Prepaid Items 13,900.00 Fire Department Prepaid Items 24,876.00 Police Department Prepaid Items 34,699.00 Sales Tax Prepaid Items 26.540.00
RESTRICTED: Debt Service Debt Service $ 180,292.24 Sales Tax Equipment Purchases 58.889.77 Capital Projects Fund Street Improvements 152,400.73
ASSIGNED: Farmerville Volunteer Fire Department Fire Department s 80.618.11 Farmerville Area Fire Protection District Fire Department 10,901.12 Fire Department Fire Department 751,368.07 Police Department Police Department 41,098.84 Sales Tax Fund - 2002 Sales Tax Streets & Recreation 466,053.46 Sales Tax Fund Garbage/Streets/Sewer 674.243.23
UNASSIGNED: Capital Projects $ 1.09 General Fund 76,757.98 TOTAL FUND BALANCE L- 2.635.570.64
-40- REQUIRED SUPPLEMENTAL INFORMATION (PART U) TOWN OF FARMERVILLE STATEMENT A FARMERVILLE. LOUISIANA GENERAL FUND STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30. 2013
% CHANGE % CHANGE LAST PROJECTED ADOPTED ACTUAL BUDGET VS RESULT ACTUAL PROJECTED PROJECTED AT YEAR LAST YEAR ESTIMATED ACTUAL ACTUAL ENDVS ORIGINAL ADOPTED TO DATE REMAINING RESULT RESULT AT PROPOSED PROPOSED BUDGET BUDGET JUNE 30,2013 FOR YEAR YEAR END YEAR END BUDGET BUDGET REVENUES TAXES Advalorem - General S 210,000.00 210,000.00 S 218,235.22 .00 218,235.22 S 210.000.00 Franchise 190.000.00 190,000.00 178,060.21 .00 178,060.21 190.000.00 Housing Authority in Lieu of Taxes 8.000.00 8,400.00 8.380.53 .00 8.380.53 8.000.00 Total Taxes S 408.000.00 $ 408.400.00 S .00 404.675.96 .99% $ 408.000.00 1.00%
LICENSES AND TAXES Alcoholic Beverages 8.000.00 8.000.00 8,222.00 .00 8.222.00 S 8,000.00 Occupational 95.000.00 90.000.00 98,511.71 .00 98,511.71 90.000.00 Occupational Insurance 90,000.00 87,000.00 95,273.65 .00 95,273.65 85,000.00 Building - Licenses and Permits 5,000.00 3,000.00 3.165.36 .00 3,165.36 5.000.00 Video Bingo 70.000.00 70.000.00 .00 72.322.88 70.000.00 Total Licenses and Taxes S 268.00000 S 258.000.00 $ 277.495.60 $_ .00 277.495.60 1.08% $ 258.000.00 .93%
CHARGES FOR SERVICES Juvenile Court s .00 s .00 s 176.80 .00 176.80 $ .00 Municipal Court Cost 25,000.00 .00 .00 .00 25,000.00 Garbage Fees 400,000.00 440,000.00 390,611.30 390,611.30 440.000.00 Zoning Charges 500.00 500.00 300.00 300.00 500.00 Total Charges for Services $ 440.500.00 .00 .89% $ 465.500.00 1 .19%
MISCELLANEOUS Condemned Houses .00 S 4,000.00 S 4.100.00 S .00 S 4.100.00 .00 Miscellaneous 1.000.00 47,500.00 47,599.53 .00 47,599.53 1,000.00 Fees - Farmer's Market 1.500.00 1,500.00 1.789.00 .00 1.789.00 1.700.00 Administrative Fees 75.000.00 75,000.00 75,000.00 .00 75,000.00 75,000.00 Land Sale .00 154,000.00 .00 .00 .00 .00 Interest Income 100.00 100.00 141.93 141.93 100.00 Total Miscellaneous S 77.600.00 S 282,100.00 128.630.46 s .00 .45% 77.800.00 .60% STATE SOURCES State Revenue Sharing s 500.00 S 500.00 .00 s .00 500.00 Beer Tax 5.000.00 6.500.00 7.121.45 7.121.45 Total State Sources $ 5.500.00 7.000.00 7.121.45 s .00 7.121.45 1.01% S 7,000.00 .98%
TOTAL REVENUE S 11,184.600.0 0 $ 1.396.000.00 S 1.209.011.57 s .00 $ 1.209.011.57 1.01% EXPENPrrURES
SUMMARY OF EXPENDFTURES - BY DEPARTMENT General Govemment Administrative S 499.650.00 S 628.65000 S 604.159.55 $s ^.0 0 $ 604.159.55 .96% $ 493.550.00 .82%
SUMMARY OF EXPENDITURES - BY FUNCTION Sanitation $ 401.850.00 $ 466.200.00 S 519.863.17 $ ^.0 0 % 519.863.17 1.12% $ 414.650.00 ^80%
TOTAL EXPENDITURES J 901.500.00 $ 1.094.850.00 $ 1.124.022.72 s$ .0^ 0 S 1.124.022.72 1.03% S 908.200.00 -81%
SUMMARY OF OTHER FINANCING RECEIPTS (USES) Transfers In Sales Taxes - Garbage s 50,000.00 $ 50.000.00 S 45,250.00 S .00 s 45^50.00 S 50,000.00 Transfers Out Transfer to Police (300.000.00) (280.000.00) (281.813.16) .00 (281.813.16) (300.000.00) Total Summary of Other Financing Receipts (Uses) $S_ (250.000.00<250.000.00) 1$ . (230.00.00) LS (236.563.16) $s ^.0 0 S$ _ (236.563.16) 1.03% $ _ (250.000.00) 1.06% NET CHANGES IN FUND BALANCE $ 33,100.00 S 71.150.00 s (151,574.31) $ .00 s (151,574.31) S 58,100.00
FUND BALANCE - JULY I 256.354.29 256,354.29 256.354.29 .00 256,354.29 104.779.98
FUND BALANCE - JUNE 30 ^ 289.454.29 1-. 327.504.29 L 104.779.98 ? —m L= L 162,879.98
The notes are an integral part of these statements. See accompanying notes and auditors' report.
-41- TOWN OF FARMERVILLE STATEMENT A-l FARMERVILLE. LOUISIANA GENERAL FUND • FIRE DEPARTMENT STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP) AND ACTUAL FOR THE nSCAL YEAR ENDED JUNE 30, 2013
% CHANGE % CHANGE LAST PROJECTED ADOPTED ACTUAL BUDGET VS RESULT ACTUAL PROJECTED PROJECTED AT YEAR YEAR ESTIMATED ACTUAL ACTUAL ENDVS ORIGINAL AMENDED TO DATE REMAINING RESULT RESULT AT PROPOSED PROPOSED BUDGET BUDGET JUNE 30, 2013 FOR YEAR YEAR END YEAR END BUDGET BUDGET REVENUES
LOCAL SOURCES TAXES Advalorem - Fire Department S 230.000.00 $ 230.000.00 s 250.590.96 .00 250.590.96 1.09% $ 230.000.00 .91% MISCELLANEOUS hiterest Income 6,000.00 6.000.00 s 6.333.54 .00 6.333.54 1.06% $ 10.000.00 1.57%
STATE SOURCES Supplemental Pay S 6,000.00 6,000.00 s 6,000.00 6,000.00 S 12.000.00 Stale 2% Insurance Fund 18.000.00 18.000.00 40,377.41 .00 40.377.41 18.000.00 Total State Sources S 24.000.00 24.000.00 s 46,377.41 .00 46,377.41 1.93% $ 30.000.00 .65%
TOTAL REVENUE S 260.000.00 $ 260.000.00 $ 303,301.91 .00 303.301.91 1.21% $ .89%
Salaries and Expenditures $ 70.000.00 S 70,000.00 s 66.085.94 $ .00 $ 66,085.94 70.000.00 Salaries - Supplementary Pay 6.000.00 6.000.00 6,000.00 .00 6,000.00 12.000.00 Employee Benefits Expenditures Dental Insurance 600.00 600.00 554.57 .00 554.57 600.00 Medicare Tax 1,000.00 1,000.00 1,058.84 .00 1,058.84 1,000.00 Retirement 20,000.00 16.000.00 15,093.54 .00 15,093.54 19.000.00 ncA 4.400.00 4,400.00 4,527.75 .00 4,527.75 4.400.00 Unemployment 200.00 200.00 134.17 .00 134.17 200.00 Hospital Insurance 12,000.00 12.000.00 12.088.44 .00 12,088.44 16,000.00 Workers Compensation Insurance 5,000.00 5,000.00 2,109.80 .00 2,109.80 5,000.00 Employee Drug Test 200.00 200.00 347.50 .00 347.50 200.00 Uniforms 4.000.00 2.000.00 1,910.92 .00 1,910.92 4.000.00 Advertising 200.00 200.00 .00 .00 .00 200.00 Administrative Fees 5,000.00 5.000.00 5.000.00 .00 5,000.00 5.000.00 Audit Cost 3,000.00 3,000.00 3.000.00 .00 3,000.00 3.000.00 Computer Expense .00 .00 225.00 .00 225.00 500.00 Dues and Subscriptions 100.00 100.00 65.00 .00 65.00 100.00 Vehicle-Gas and Oil 8,000.00 8.000.00 8,323.51 .00 8,323.51 8,000.00 Vehicle Repairs and Expense 21.000.00 11,000.00 10,953.69 .00 10,953.69 21.000.00 Fire Equipment Repairs 2,000.00 2,000.00 2,180.25 .00 2.180.25 2,000.00 Radios 1,000.00 1,000.00 396.61 .00 396.61 1,000.00 Telephone 2.500.00 3,500.00 3.936.13 .00 3.936.13 2.500.00 Supplies 25,000.00 15,000.00 13.423.42 .00 13,423.42 25,000.00 Travel and Training 4,000.00 4,000.00 1,010.30 .00 1.010.30 2,000.00 Assets Purchase 100.000.00 5,000.00 698.99 .00 698.99 114,300.00 Major Purchases 120,000.00 120,000.00 .00 .00 .00 120,000.00 Fire Prevention 4,000.00 4,000.00 3.215.51 .00 3,215.51 4,000.00 Fire Station Repairs 3.000.00 3.000.00 2,309.31 .00 2,309.31 3,000.00 Clothing Allowance 14,000.00 8,000.00 7,473.00 .00 7.473.00 12,000.00 Miscellaneous 2,000.00 2,000.00 76.41 .00 76.41 2.000.00 Ofllce Supplies 600.00 1,000.00 684.90 .00 684.90 1.000.00 Utilities 8,000.00 8,000.00 6.513.10 .00 6.513.10 8,000.00 Insurance 35,000.00 30.000.00 34.249.02 .00 34.249.02 35.000.00 Total Expenditures S 481,800.00 S 351.200.00 S 213,645.62 .00 213.645.62 .61% $ 502.000.00 2.35%
EXCESS OF REVENUE OVER (UNDER) EXPENDITURES $ (221.800.00) $ (91.200.00) J; 89.656.29 .00 89.656.29 .98% S (232.000.00)
OTHER FINANCING SOURCES (USES) Operating Transfers Out: Transfer to Fire District S (10.000.00) S (20.000.00) S (20.000.00) $ .00 s (20,000.00) S (10.000.00) Transfer to Volunteer Fire Department (18,000.00) (18,000.00) (17,817.39) .00 (17.817.39) (18.000.00) Operating Transfers In: Farmerville Fire District 260.000.00 260.000.00 261.715.32 .00 261.715.32 260.000.00 $ 232.000.00 S 222.000.00 $ 223.897.93 S .00 c 223.897.93 1.01% $ 232.000.00 1.05% EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER (USES) BEFORE EXTRAORDINARY ITEM 10,200.00 $ 313.554.22 .00 313.554.22 2.40% $ .00
FUND BALANCE - JULY I 462.689.85 462.689.85 462.689.85 .00 776.244.07
FUND BALANCE - JUNE 30 $ 472.889.85 S 593.489.85 S 776.244.07 $ m $ 776.244.07 $ 776.244.07
The notes are an integral part of these statements. See accompanying notes and auditors' report.
-42- TOWN OF FARMERVILLE STATEMENT A-2 FARMERVILLE. LOUISIANA GENERAL FUND - POUCE DEPARTMENT STATEMENT OF REVENUES,. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2013
% CHANGE LAST % CHANGE ADOPTED PROJECTED BUDGET VS AcrruAL PROJECTED PROJECTED RESULT AT ACTUAL ESTIMATED ACTUAL ACTUAL YEAR END VS ORIGINAL AMENDED YEAR REMAINING RESULT RESULT AT PROPOSED PROPOSED BUDGET BUDGET TO DATE FOR YEAR YEAR END YEAR END BUDGET G/El REVENUES LOCALSOURCES TAXES Sales Taxes L. 450.000.00 5_ 475,000.00 s_ 478.566.29 S .00 l_ 478.566.29 $_ 475.000.00 CHARGES FOR SERVICES Juvenile Court $ 1,000.00 s 1,500.00 $ .00 S .00 s .00 S 1.500.00 Municipal Court Cost 20,000.00 25,000.00 24,162.50 .00 24,162.50 65,000.00 Accident Report 1.000.00 1,000.00 1.017.50 .00 1.017.50 1.000.00 Drug Task Force 5,000.00 6,200.00 6.304.00 .00 6.304.00 6.000.00 AMS Collection 5,000.00 2.000.00 1.829.98 .00 1.829.98 1.500.00 Total Charges for Servires £ 32.000.00 L 35.700.00 H 33.313.98 s .00 E 33.313.98 .93% £ 75.000.00 2.25% FINES AND FORFEITS DWI Fines s 2,000.00 $ 8,000.00 $ 8,452.50 s .00 $ 8,452.50 S 10,000.00 Municipal Court Fines 50,000.00 62,000.00 61,970.50 .00 61,970.50 30,000.00 Bench Warrants 2,600.00 3,500.00 3,540.00 .00 3,540.00 3,500.00 Others .00 .00 2.394.19 .00 2.394.19 .00 Total Fines and Forfeits L 54.600.00 si 73.500.00 L 76.357.19 s .00 H 76.357.19 1.04% E 43.500.00 .57% MISCELLANEOUS Miscellaneous $ 2.000.00 $ 2,000.00 s 1,898.25 $ .00 s 1,898.25 s 2.000.00 Interest Income 500.00 200.00 169.56 .00 169.56 200.00 Sex Offender Registration 100.00 100.00 120.00 .00 120.00 100.00 Total Miscellaneous r 2.600.00 V 2.300.00 L 2.187.81 $ .00 H 2,187.81 .95% r 2.300.00 1.05% STATE SOURCES Supplemental Pay State of Louisiana i_ 60.000.00 $_ 60.000.00 L. 69.207.50 $ .00 $_ 69.207.50 1.15% J_ 60.000.00 .87% TOTAL REVENUE $_ 599.200.00 $_ 646.500.00 5_ 659.632.77 s .00 $_ 659,632.77 1.01% $_ 655.800.00 1.89% EXPENDITURES Salaries s 525.000.00 $ 505,000.00 s 512.939.70 s .00 s 512,939.70 s 500,000.00 Salaries - Supplementary Pay 60,000.00 60,000.00 69,207.50 .00 69,207.50 72.000.00 Employee Benefits Expenditures Dental Insurance 4,200.00 4,200.00 4,392.45 .00 4,392.45 4,500.00 Medicare Tax 8,500.00 8,200.00 8.143.84 .00 8,143.84 8.300.00 FICA 36,500.00 35.000.00 34,821.53 .00 34,821.53 35,500.00 Retirement 6.000.00 12,000.00 12.150.62 .00 12,150.62 18.500.00 Unemployment 1.500.00 1,500.00 994.75 .00 994.75 2,000.00 Hospital Insurance 62,000.00 88.000.00 87.876.94 .00 87.876.94 103,000.00 Life Insurance 2,200.00 2.200.00 2,223.00 .00 2,223.00 2.200.00 Employee Drug Test 600.00 600.00 220.00 .00 220.00 800.00 Workers Compensation Insurance 18,000.00 18.000.00 5,264.88 .00 5.264.88 18,000.00 Uniforms 5,000.00 2,000.00 876.05 .00 876.05 2,000.00 Prisoners Expenditures .00 .00 198.95 .00 198.95 .00 Dog Expense 2,500.00 2,500.00 2,211.95 .00 2,211.95 2,500.00 Advertising and Filing 2.000.00 500.00 270.00 .00 270.00 500.00 Auditing .00 1.000.00 1,000.00 .00 1.000.00 1.000.00 Computer Expense 2.000.00 2,000.00 2,795.79 .00 2,795.79 2,000.00 Dues and Subscriptions 1.000.00 1,000.00 606.55 .00 606.55 1,000.00 Equipment Expense 2,000.00 2,000.00 5,265.29 .00 5,265.29 2,000.00 Insurance 22,000.00 38,000.00 35,211.16 .00 35,211.16 38.000.00 Office Supplies 4,000.00 2,000.00 1,702.19 .00 1,702.19 2,000.00 Office Cleanings 2.400.00 2.400.00 2.600.00 .00 2,600.00 2,400.00 Travel and Training 4.000.00 5.000.00 7,179.68 .00 7,179.68 4.000.00 Assets Purchases 60,000.00 43.000.00 33,574.62 .00 33,574.62 60,000.00 Building Maintenance .00 1.500.00 1,293.96 .00 1,293.96 1.500.00 Miscellaneous 1.000.00 1,000.00 27,984.00 .00 27.984.00 1,000.00 Telephone 6,000.00 6.000.00 6,080.50 .00 6,080.50 6.000.00 Supplies 8.000.00 6,000.00 7.182.69 .00 7,182.69 6,000.00 Vehicle - Gas and Oil 30,000.00 35.000.00 39,731.68 .00 39,731.68 35,000.00 Vehicle Repairs 10.000.00 10,000.00 15,170.10 .00 15,170.10 10.000.00 Police Utilities 6,000.00 6.000.00 5.584.51 .00 5,584.51 5,500.00 Police Grant Expense .00 .00 10,668.00 .00 10,668.00 .00 AMS Collection Expense .00 500.00 464.50 .00 464.50 .00 Sales Tax Collection Expense 4.500.00 4.750.00 6.032.07 .00 6.032.07 4.750.00 TOTAL EXPENDITURES S 896,900.00 3 906.850.00 $ 951.919.45 5 .00 s 951,919.45 1.05% S 951.950.00 1.05%
EXCESS OF REVENUE OVER (UNDER) EXPENDITURES $ (297.700.00) S (260,350.00) S (292.286.68) J_ .00 (292.286.68) 7.79% S (296.150.00) 10.23%
OTHER FINANCING SOURCES (USES) Operating Transfer In Transfers from General Fund t 300.000.00 $ 280.000.00 $ 281.813.16 $_ .00 281.813.16 1.01% S 300.000.00 1.06%
EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER (USES) BEFORE EXTRAORDINARY fTEM 2,300.00 19,650.00 $ (10,473.52) $ .00 (10.473.52) $ 3.850.00
FUND BALANCE JULY 1 86.271.03 86.271.03 86,271.03 86.271.03 75.797.51 FUND BALANCE JUNE 30 88.571.03 S 105.921.03 S 75.797.51 $ .00 75.797.51 S 79.647.51
The notes arc an integral pari of these statements. See accompanying notes and auditors' report. -43- TOWN OF FARMERVILLE STATEMENT B FARMERVILLE. LOUISIANA SPECIAL REVENUES - SALES TAX FUND SCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30,2013
ORIGINAL AMENDED (BUDGET) REVENUE BUDGET BUDGET ACTUAL VARIANCE
Sales Tax 900.000.00 950,000.00 958.176.23 8,176.23 Interest Earned 8.000.00 7,000.00 7.483.55 483.55 State Mowing Contract 12,570.00 12,570.00 12,570.00 .00 Miscellaneous .00 .00 1,475.00 1,475.00 TOTAL REVENUES $ 920,570.00 $ 969.570.00 $ 979.704.78 $_ 10,134.78
EXPENDITURES) GENERAL GOVERNMENT Salaries 80,000.00 $ 40,000.00 $ 38,928.02 $ 1,071.98 En:q)loyee Benefits Expenditures Medicare Tax 1,200.00 600. 00 503.78 96.22 Municipal Retirement 12,000.00 6,000. 00 5,177.46 822.54 nCA 5.000.00 2,500, 00 2,154.07 345.93 Unemployment 300.00 300. 00 73.01 226.99 Hospital Insurance 12.000.00 7,000. 00 6,995.10 4.90 Dental 1,000.00 500. 00 341.90 158.10 Workers Compensation Insurance 4,000.00 00 .00 .00 Employee Drug Test 200.00 200. 00 .00 200.00 Uniforms 1,000.00 1,000. 00 174.79 825.21 Administrative Fees 30.000.00 30,000.0 0 30,000.00 .00 Advertising and Filing 400.00 400. 00 201.00 199.00 Auditing 5.000.00 5,000. 00 5,000.00 .00 Building Maintenance 5.000.00 7,000. 00 6,979.76 20.24 Computer 2.000.00 2,000. 00 1,316.73 683.27 IBM Lease Purchase 4.000.00 4,000. 00 3,628.57 371.43 Insurance - Liability 4,000.00 10,000. 00 11,481.60 (1.481.60) Grant Expense .00 00 500.00 (500.00) Miscellaneous 5,000.00 2,000. 00 (908.43) 2,908.43 Office Expenditures 3,000.00 1,000.0 0 763.96 236.04 Sales Tax Collection Cost 9,000.00 9,500, 00 12,110.20 (2,610.20) Telephone 2.000.00 3,000. 00 3,173.28 (173.28) Total General Govemment $ 186.100.00 $_ 132,000 00 $ 128.594.80 $ (3.405.20)
PRISON LABOR AND EXPENDITURES Labor and Expenditures $ 3,000.00 $_ 3,000.00 $ 2.429.69 570.31 Total Prison Labor and Expenditures $ 3,000.00 $_ 3.000.00 $ 2.429.69 570.31 STREET REPAIRS Salaries 210.000.00 $ 210,000.00 $ 208.492.82 $ 1,507.18 Employee Benefit Expenditures Medicare Taxes 3,000.00 3,000.00 2,951.15 48.85 Municipal Retirement 30,000.00 30,000.00 31,161.05 (1,161.05) FICA Taxes 13,000.00 13,000.00 12,617.74 382.26 Unemployment Taxes 500.00 500.00 416.56 83.44 Hospital Insurance 35,000.00 42,000.00 41.949.70 50.30
-44- TOWN OF FARMERVILLE STATEMENT B FARMERVILLE, LOUISIANA CONTINUED SPECIAL REVENUES - SALES TAX FUND SCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES1 - BUDGET (GAAP) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2013
ORIGINAL AMENDED (BUDGET) STREET REPAIRS CONTINUED BUDGET BUDGET ACTUAL VARIANCE Dental $ 1.800.00 $ 1,800.00 $ 2.024.23 $ (224.23) Workers Compensation Insurance 22,000.00 29,000.00 18,506.48 10,493.52 Employee Drug Testing 300.00 300.00 385.00 (85.00) Uniforms 3,000.00 3,000.00 1,166.52 1,833.48 Clean City Expense 25,000.00 25,000.00 21,780.31 3,219.69 Insurance 10,000.00 10,000.00 15,474.96 (5,474.96) Street Asset Purchase 50,000.00 30,000.00 3,952.62 26,047.38 Street In^rovement/Maintenance 30,000.00 30,000.00 56,497.45 (26,497.45) Truck Equipment - Oil and Gas 30,000.00 32,000.00 32,187.51 (187.51) Truck Equipment Repairs 20.000.00 20,000.00 21.576.36 (1,576.36) Utilities 65.000.00 70,000.00 72,648.00 (2.648.00) Miscellaneous 10,000.00 10,000.00 9,852.09 147.91 Total Street Repair $_ 558,600.00 $ 559,600.00 $_ 553,640.55 L 5,959.45 MAINTENANCE DEPARTMENT Truck Expenditures $ 3,000.00 $ 500.00 $ 244.78 s 255.22 Shop Supplies 10,000.00 4,000.00 3,881.25 118.75 Total Maintenance Department L 13,000.00 $ 4,500.00 $_ 4,126.03 $_ 373.97
TOTAL EXPENDITURES $_ 760,700.00 $ 699,100.00 $_ 688,791.07 $_ 10,308.93
EXCESS OF REVENUE OVER (UNDER) EXPENDITURES $_ 159.870.00 $ 270,470.00 L 290,913.71 L 20.443.71 OTHER FINANCING SOURCES (USES) Operating Transfers In (Out): Transfer to Other Funds - Garbage S (50,000.00) $ (50,000.00) $ (45.250.00) $ 4,750.00 Transfer Debt Service - TIF Bonds (36.000.00) (39.600.00) (71,265.00) (31,665.00) Transfer Debt Service - USDA Loan (25.000.00) (25,000.00) (26.488.00) (1,488.00) Transfer to Sewer (20.000.001 (10.000.001 .m lO.OOO.OO Total Other Financing Soiu-ces (Uses) S (131.000.00) $ (124,600.00) S (143.003.001 $ (18.403.001
EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER (USES) BEFORE EXTRAORDINARY ITEM $ 28,870.00 $ 145,870.00 S 147,910.71 $ 2.040.71
FUND BALANCE - JULY 1 611.762.29 611.762.29 611.762.29
FUND BALANCE - JUNE 30 $ 640.632.29 $ 757.632.29 $ 759.673.00
The notes are an integral part of these statements. See accompanying notes and auditors' report.
-45- TOWN OF FARMERVILLE STATEMENT C FARMERVILLE, LOUISIANA OTHER POST EMPLOYMENT BENEFITS (OPEB1 SCHEDULE OF FUNDING PROGRESS FOR THE FISCAL YEAR ENDED JUNE 30, 2013
UAAL AS A ACnjARlAh PERCENTAGE ACTUARIAL ACTUARIAL ACCRUED OF VALUATION VALUATION LIABILITY UNFUNDED FUNDED COVERED COVERED DATE OF ASSETS UNIT CREDIT AAL (UAAL) RATIO PAYROLL PAYROLL 7/1/2010 $ .00 $ 190,611.00 $ 190,611.00 0.0% $ 733.969.00 25.97% 7/1/2011 S .00 $ 239,001.00 $ 239,001.00 0.0% $ 859,289.00 27.81% 7/1/2012 $ .00 $ 315,375.00 $ 315.375.00 0.00 $ 892.028.00 35.35%
The notes are an integral part of these statements. See accompanying notes and auditors' report. -46- OTHER SUPPLEMENTAL INFORMATION( PART III) TOWN OF FARMERVILLE SCHEDULE A FARMERVILLE. LOUISIANA ENTERPRISE FUND STATEMENT OF REVENUES. EXPENSES. AND CHANGES IN RETAINED EARNINGS - BUDGET (GAAP) AND ACTUAL FOR THE nSCAL YEAR ENDED JUNE 30, 2013
WATER SEWER ORIGINAL AMENDED ORIGINAL AMENDED OPERATING REVENUES BUDGET BUDGET ACTUAL VAIUANCE BUDGET BUDGET ACTUAL VARIANCE Charges for Service Water Sales $ 1.000.000.00 $ 1.000.000.00 $ 1,046,932.41 S 46,932.41 S .00 S .00 s .00 $ .00 Less Bad Debts (5,000.00) (12.500.00) 2.350.12 14,850.12 .00 .00 .00 .00 Penalties 45.000.00 37,000.00 38,868.24 1,868.24 .00 .00 .00 .00 Sewer Sales .00 .00 .00 .00 350,000.00 350,000.00 323,933.43 (26,066.57) Cleaning Fees .00 1.000.00 775.00 (225.00) .00 .00 .00 .00 DHHFee 5,500.00 5.500.00 5.193.60 (306.40) .00 .00 .00 .00 Tapping Fees 5,000.00 2,000.00 1,825.00 (175.00) .00 500.00 500.00 .00 Miscellaneous 300.00 54.000.00 68,978.37 14.978.37 .00 .00 .00 .00 Total Operating Revenues $ 1.087.000.00 S 1.164.922.74 S 77.922.74 $ 350.000.00 $ 350.500.00 $ 324.433.43 $ (26.066.57)
OPERATING EXPENSES Cost of Sales and Service 462.500.00 S 513,500.00 S 426.238.35 87,261.65 $ 204,000.00 197,500.00 166.725.06 $ 30,774.94 Administration 537,160.00 587.260.00 619,904.55 (32.644.55) 131,100.00 135,800.00 177.709.25 (41,909.25) Depreciation .00 .00 189,490.14 (189.490.14) ^ .00 131,558.91 (131,558.91) Total Operating Expenses S 1.100.760.00 $ 1.235.633.04 S (134.873.04) S 335.100.00 $ 333.300.00 S 475.993.22 $ (142.693.22)
OPERATING INCOME (LOSS) 51.140.00 $ ( 13.760.00) $ (70.710.30) S (56.950.30) $ 14.900.00 S 17.200.00 $ (151.559.79) $ (168.759.79)
NONOPERATING REVENUE (EXPENSES) [nterest Income s 1,500.00 3,000.00 3.001.69 1.69 J.500.00 J 1,500.00 $ 2.455.37 $ 955.37 Interest Expense .00 .00 .00 .00 .00 ^ (18,995.50) (18.995.50) Total Nonoperating Revenue (Expenses) $ 1.500.00 3.000.00 %_ 3,001.69 1.69 _L500.00 $ 1,500.00 S (16.540.13) $ (18,040.13)
NET INCOME (LOSS) BEFORE OPERATING TRANSFERS s 52,640.00 $ 18.700.00 S (168.099.92) S (186.799.92)
(TRANSFER TO)/FROM OTHER FUNDS General Fund/Sewer .00 (10,000.00) S .00 10.000.00 s 10,000.00 s 20,000.00 S .00 s (20.000.00) Transfer To/From Capital Projects Fund .00 .00 351.694.51 351,694.51 .00 .00 .00 .00 Grants - LGAP .00 .00 35,000.00 35.000.00 .00 .00 .00 .00 Transfer from Sales Tax/Debt Service .00 .00 .00 .00 (20.000.00) 05,000.00) .00 35,000.00 Total (Transfer To)/From Other Funds .00 (10.000.00) S 386.694.51 $ 396.694.51 $ (10.000.00) $ (15.000.00) $ .00 S 15,000.00
NET INCOME (LOSS) $ 52.640.00 $ (20,760.00) S 318,985.90 339.745.90 S 6.400.00 $ 3.700.00 S (168.099.92) S (171.799.92)
RETAINED EARNINGS - Beginning of Year 4,866,933.08 4.866.933.08 4.866.933.08 3.768.333.38 3.768.333.38 3.768.333.38
RETAINED EARNINGS - End of Year $ 4.919.573.08 S 4.846.173.08 S 5.18S.918.98 S 3.774.733.38 $ 3.772.033.38 S 3.600.233.46
The notes are an integral part of these statements. See accompanying notes and auditors' report. -47- TOWN OF FARMERVILLE SCHEDULE A-l FARMERVILLE, LOUISIANA ENTERPRISE FUND SCHEDULE OF DETAIL OF EXPENSES, BUDGET (GAAP) AND ACTUAL FOR THE nSCAL YEAR ENDED JUNE 30. 2013
WATER SEWER ORIGINAL AMENDED ORIGINAL AMENDED COST OF SALES AND SERVICES BUDGET BUDGET ACTUAL VARL\NCE BUDGET BUDGET ACTUAL VARIANCE
WATER AND SEWER SUPPLIES AND MATERIALS Chemicals S .00 $ .00 S .00 $ .00 $ 2,000.00 $ 3,000.00 $ 3,184.30 $ (184.30) Chemical Test .00 .00 .00 .00 7.000.00 7,000.00 7,666.00 (666.00) Chlorine 40,000.00 35.000.00 32,662.30 2.337.70 7.000.00 8.000.00 8.055.00 (55.00) Chlorine Equipment Repair 4.000.00 2,000.00 1,923.00 77.00 .00 .00 .00 .00 Grant Expenses .00 .00 .00 .00 .00 .00 .00 .00 Asset Purchases 55.000.00 50,000.00 .00 50,000.00 .00 .00 .00 .00 Sub Contractor Services .00 .00 .00 .00 5.000.00 2,500.00 2,300.00 200.00 Poultry Plant Water Well Repairs 20,000.00 55,000.00 59,580.02 (4,580.02) .00 .00 .00 .00 Major Repairs and Additions 80,000.00 30,000.00 45,436.89 (15,436.89) 50,000.00 30,000.00 8,260.43 21,739.57 Major Well and Tank Repairs 30,000.00 80,000.00 57.935.84 22,064.16 .00 .00 .00 .00 Meter Replacement 5,000.00 45.000.00 .00 45,000.00 .00 .00 .00 .00 Pump Repair .00 .00 .00 .00 20,000.00 55,000.00 48,712.02 6.287.98 Safe Drinking Program 5,500.00 5,500.00 5,011.20 488.80 .00 .00 .00 .00 Supplies 40.000.00 40,000.00 48.664.80 (8.664.80) 15,000.00 12.000.00 12.538.14 (538.14) Treatment Plant Repairs .00 .00 .00 .00 50,000.00 25.000.00 18,518.52 6,481.48 Reserved Account 18.000.00 18,000.00 .00 18.000.00 .00 .00 .00 .00 Water Supply Initiative 15,000.00 18,000.00 23,375.00 (5.375.00) .00 .00 .00 .00 Utilities 150.000.00 135.000.00 151.609.94 (16,609.94) 48.000.00 55.000.00 57.490.65 (2,490.65) Totals $ 462.500.00 $ 513.500.00 $_ 426.198.99 L 87.301.01 S 204.000.00 $ 197,500.00 S 166.725.06 S 30.774.94 ADMINISTRATIVE Advertising and Filing $ 500.00 $ 500.00 s 893.30 $ (393.30) S .00 $ .00 S .00 $ .00 Administrative Fee 30,000.00 30,000.00 30,000.00 .00 .00 .00 5,500.00 (5,500.00) Auditing 6.000.00 6,000.00 6,000.00 .00 1.000.00 1,000.00 1,000.00 .00 IBM 5.000.00 5,000.00 3.628.57 1.371.43 .00 .00 .00 .00 Bank Charges 500.00 500.00 433.72 66.28 .00 .00 .00 .00 Computer Expense 15.000.00 25,000.00 12,352.66 12,647.34 .00 .00 .00 .00 Dues 500.00 600.00 .00 600.00 .00 .00 .00 .00 Insurance- Liability 10.000.00 25.000.00 15.390.94 9,609.06 6,000.00 4,000.00 7,322.00 (3.322.00) Miscellaneous 500.00 500.00 590.00 (90.00) 300.00 300.00 .00 300.00 Office Supplies 5,000.00 8,000.00 5,928.78 2,071.22 .00 .00 38.99 (38.99) Postage 15.000.00 15.000.00 16.496.35 (1.496.35) .00 .00 .00 .00 Radio Repairs 1,000.00 1.000.00 .00 1.000.00 .00 .00 .00 .00 Telephone 9.000.00 12.000.00 13.048.07 (1,048.07) 1.000.00 1,200.00 1.262.03 (62.03) Travel and Training 4.000.00 4.000.00 3,198.01 801.99 500.00 500.00 40.00 460.00 Subtotal S 102.000.00 S 133.100.00 $ 107.960.40 25.139.60 $ 8.800.00 S 7.000.00 S 15.163.02 $ (8.163.02) Truck & Equipment Expense s Equipment - Gas and Oil $ 15,500.00 S 5,900.00 5,823.67 76.33 S .00 S .00 S .00 S .00 Equipment Repairs 1,000.00 1,100.00 s 894.32 s 105.68 .00 .00 974.95 (974.95) Truck - Gas and Oil 20,000.00 22,000.00 20,691.73 1.308.27 6,000.00 6.500.00 6.906.36 (406.36) Truck Repairs 10,000.00 12,000.00 10.068.11 1.931.89 2,000.00 1,000.00 612.61 387.39 Total Truck & Equipment Expenses 46,500.00 $ 40.900.00 37.477.83 S 3.422.17 7,500.00 8.493.92 $_ (993.92)
Cost of Labor Salaries 265.000.00 285,000.00 294,563.98 (9,563.98) $ 80,000.00 S 82,000.00 S 83,652.11 (1,652.11) Employee Benefits Post Retirement Benefits .00 .00 49.086.00 (49.086.00) .00 .00 32,234.00 (32,234.00) Retirement Expense 40,000.00 40,000.00 42.30S.49 (2308.49) U.000.00 11,000.00 11,641.63 (641.63) Medicare Tax 3,800.00 4,200.00 4,095.44 104.56 1.200.00 1,200.00 1,253.24 (53.24) FICA Contribution 16.430.00 17,630.00 17,511.68 118.32 5,000.00 5,000.00 5,074.50 (74.50) Unemployment Tax 530.00 530.00 574.45 (44.45) 200.00 200.00 164.58 35.42 Hospital Insurance 40,000.00 50,000.00 48,965.70 1,034.30 12,000.00 16,000.00 15.890.37 109.63 Dental 2,500.00 2.500.00 1,934.54 565.46 1,000.00 1,000.00 789.00 211.00 Worker's Compensation Insurance 15.000.00 10.000.00 14.019.88 (4.019.88) 3,000.00 4,000.00 3,352.88 647.12 Employee Drug Testing 400.00 400.00 no.oo 290.00 100.00 lOQ.OO .00 100.00 800.00 Uniforms 3,000.00 1,296.16 1,703.84 800.00 800.00 .00 Total Cost Labor $ 388,660.00 $ 413,260.00 $ 474,466.32 $ (61,206.32) $ 114.300.00 S 121,300.00 S 154.052.31 $ (32.752.31)
Total Administrative $ 537.160.00 i 587.26000 % 619.904.55 S (32.644.55) S 131.100.00 $ 135.800.00 $ 177.709.25 % (41.909.25)
The notes are an integral part of these statements. See accompanying notes and auditors' report.
-48- SPECIAL REVENUE FUNDS
Special revenue ftinds are used to account for special revenues that are legally restricted to expenditures for particular purposes.
SALES TAX FUND
Proceeds ofthe 1% sales tax are to be used for costs incurred in operating a Sanitary Landfill Site for Garbage and Waste Disposal; for Street Repair and Maintenance; and for Sewer Repair and Maintenance.
FARMERVILLE VOLUNTEER FIRE DEPARTMENT. INC.
The volunteer fire department receives funds from fiind raisers, drink sales and from the State of Louisiana 2% rebate funds. Their expenses are purchases of drinks, miscellaneous equipment, fund raiser and volunteer firemen benefits. Most funds are accumulated to be used for purchase of fire department equipment.
FARMERVILLE AREA FIRE PROTECTION DISTRICT OF UNION PARISH
The Fire District receives proceeds of advalorem taxes from the Sheriffs Department. Five percent of collections are retained by the fire district. The remaining funds are transferred to the Town of Farmerville for use in operating expenses, capital improvements and equipment purchases.
2002 SALES TAX FUND
On October 20, 2001 an additional V% of 1% sales and use tax was approved. This tax was approved for construction of a recreation center and street improvements. Bonds were sold in the amount of $2,900,000 for construction ofthe recreation center and improvements ofthe streets. These bonds were paid off by a new bond issued in 2012 for $2,575,000, which will be paid oif from the 2002 sales tax.
2011 y2 SALES TAX FOR POLICE
On April 30,2011 a V2 of 1% sales tax was passed for the operations ofthe Farmerville Police Department. A separate fund will accoimt for the dedicated funds.
CAPITAL PROJECTS FUND
Capital projects funds should be established when capital acquisition or construction is financed, in whole or in part, through bonds, intergovemmental revenues, major private donations or special assessments. In addition, capital projects funds can be useful when capital acquisition or construction is financed by several fimds or over several accounting periods. The capital projects fund is for the construction of streets and sewer. TOWN OF FARMERVILLE SCHEDULE B FARMERVILLE. LOUISL\NA MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30. 2013
MAJOR GOVERNMENTAL FUNDS TOTAL GENERAL GARBAGE FIRE POLICE GENERAL ASSETS FUND DEPARTMENT DEPARTMENT ]DEPARTMEN T ELIMINATIONS FUND Cash and Cash Equivalents $ 168,616.57 $ .00 $ .00 $ .00 $ .00 S 168,616.57 Property Taxes Receivable - Net 194.77 .00 .00 .00 .00 194.77 Sales Tax Receivable .00 .00 22,251.70 40,255.81 .00 62,507.51 Receivable - Franchise Fees 12,543.70 .00 .00 .00 .00 12,543.70 Accoimts Receivable 8,326.75 .00 .00 .00 .00 8,326.75 Prepaid Items 28,022.00 .00 24,876.00 34,699.00 .00 87,597.00 Due from Other Funds 14,747.59 .00 .00 .00 .00 14.747.59 Due from Major Funds 45,897.31 .00 .00 .00 (45.897.31) .00 Restricted Assets Cash and Cash Equivalents .00 .00 789.700.21 46.881.36 .00 836,581.57 TOTAL ASSETS L_ 278.348.69 L m L 836.827.91 L 121.836.17 1= (45.897.31) t- K19L115.46 LIABILITIES AND FUND BALANCE
LIABILITIES Accounts Payables s 52.202.36 s .00 $ 10,476.53 s 23,721.33 $ .00 $ 86.400.22 Accrued Liabilities 16,538.54 .00 4,210.00 22,317.00 .00 43.065.54 Deferred Revenue 96,744.00 .00 .00 .00 .00 96.744.00 Due to Other Funds 8,083.81 .00 .00 .00 .00 8,083.81 Due from Major Funds .00 .00 45.897.31 .00 (45.897.31) .00 Total Liabilities $ 173.568.71 L .00 l_ 60.583.84 L 46,038.33 l_ (45,897.31) L_ 234,293.57 FUND BALANCE Nonspendable $ 28,022.00 s .00 s 24,876.00 s 34,699.00 $ .00 $ 87.597.00 Assigned .00 .00 751.368.07 41.098.84 .00 792.466.91 Unassigned 76,757.98 .00 .00 .00 .00 76,757.98 Total Net Position $ 104,779.98 l_ .00 l_ 776.244.07 L 75.797.84 l_ .00 1_ 956,821.89
BALANCE 1- 278.348.69 J- .00 J- 836.827.91 L 121.836.17 1= (45.897.31) L= 1.191.115.46
The notes are an integral part of these statements. See accompanying notes and auditors' report.
-49- TOWN OF FARMERVILLE SCHEDULE B-1 FARMERVILLE. LOUISIANA MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE
MAJOR GOVERNMENTAL FUNDS TOTAL GENERAL GARBAGE FIRE POLICE GENERAL REVENUES FUND DEPARTMENT DEPARTMENT DEPARTMENT FUND Taxes Advalorem - General $ 218.235.22 $ .00 $ 250,590.96 $ .00 :B 468,826.18 Sales Taxes .00 .00 .00 478,566.29 478,566.29 Franchise 178,060.21 .00 .00 .00 178,060.21 Housing Authority in Lieu of Taxes 8.380.53 .00 .00 .00 8.380.53 Total Taxes 404.675.96 $ .00 250,590.96 478,566.29 $ 1.133,833.21
Licenses and Taxes Alcoholic Beverages 8,222.00 .00 .00 00 S 8.222.00 Occupational 98.511.71 .00 .00 00 98.511.71 Occupational Insurance 95,273.65 .00 .00 00 95,273.65 Other 3.165.36 .00 .00 00 3,165.36 Video Bingo 72.322.88 .00 .00 00 72.322.88 Total Licenses and Taxes 277,495.60 $ .00 $ .00 S .00 277,495.60
Intergovemmental Revenues Beer Tax 7.121.45 $ .00 $ .00 S .00 7,121.45 State 2% Insurance Fund .00 .00 40,377.41 .00 40.377.41 Total Intergovemmental Revenues 7.121.45 $ .00 s 40.377.41 $ .00 47.498.86 Charges for Services Juvenile Court 176.80 S .00 .00 $ .00 $ 176.80 Municipal Court Cost .00 .00 .00 24,162.50 24.162.50 Accident Report .00 .00 .00 1.017.50 1.017.50 Drug Task Force .00 .00 .00 6,304.00 6.304.00 AMS Collection .00 .00 .00 1.829.98 1.829.98 Garbage Fees .00 390,611.30 .00 .00 390,611.30 Zoning Charges 300.00 .00 .00 .00 300.00 Total Charges for Services 476.80 .00 33.313.98 424.402.08
Fines and Forfeits DWI Fines .00 $ .00 00 $ 8,452.50 $ 8.452.50 Municipal Court Fines .00 .00 00 61,970.50 61,970.50 Bench Warrants .00 .00 00 3.540.00 3.540.00 Others :00 .00 00 2,394.19 2,394.19 Total Fines and Forfeits .00 $ .00 .00 76.357.19 76,357.19
Miscellaneous Condemned Houses 4.100.00 $ .00 .00 .00 4,100.00 Miscellaneous 47.599.53 .00 .00 1.898.25 49,497.78 Supplemental Pay - State of Louisiana .00 .00 6,000.00 69.207.50 75.207.50 Sex Offender Registration .00 .00 .00 120.00 120.00 Fees - Farmer's Market 1,789.00 .00 .00 .00 1.789.00 Administrative Fees and Mechanic 75.000.00 .00 .00 .00 75,000.00 Interest Income 141.93 .00 6.333.54 169.56 6.645.03 Total Miscellaneous $ 128.630.46 S .00 $ 12,333.54 $ 71,395.31 $ 212.359.31
TOTAL REVENUE $ 818.400.27 $ 390.611.30 $ 303,301.91 $ 659,632.77 $ 2.171.946.25 EXPENDITURES General and Administrative Salaries and Expenditures $ 209,794.21 $ 233,189.87 $ 66,085.94 $ 512.939.70 $ 1,022,009.72 Supplemental Pay .00 .00 6,000.00 69.207.50 75.207.50 Employee Benefits Expenditures Dental Insurance 1,275.42 2,630.00 554.57 4,392.45 8,852.44 Medicare Tax 2,943.07 3,283.11 1.058.84 8,143.84 15.428.86 FICA 12,583.28 14,045.81 4,527.75 34,821.53 65.978.37 Unemployment 260.29 457.61 134.17 994.75 1,846.82 Retirement 21,789.69 35,759.30 15.093.54 12.150.62 84,793.15 Hospital Insurance 28.159.30 64,956.62 12.088.44 87,876.94 193,081.30 Post Retirement Benefits .00 .00 .00 2.223.00 2,223.00 Uniforms 1.488.20 3,115.22 1,910.92 5.264.88 11.779.22 Woricers Compensation Insurance 1,107.88 41,202.26 2.109.80 876.05 45,295.99 Employee Drug Testing .00 30.00 347.50 220.00 597.50 Attorney's Fees 17.725.00 .00 .00 .00 17,725.00 Administrative Fees .00 .00 5,000.00 .00 5,000.00 Auditing 10,000.00 .00 3,000.00 1,000.00 14.000.00 Advertising and Filing 14,232.45 .00 .00 270.00 14,502.45 Bank Chaiges 700.00 .00 .00 .00 700.00 City Halt Maintenance and Supplies 6.979.89 .00 .00 .00 6,979.89 Civil Defense 289.77 .00 .00 .00 289.77 Collection Expenditures AMS .00 .00 .00 464.50 464.50 Sales Taxes .00 .00 .00 6,032.07 6,032.07 Computer Expenditures 3.282.44 5,366.75 225.00 2,795.79 11,669.98 Compactor Expenditures .00 .00 .00 1,293.96 1,293.96 Coroner Expenditures 10.625.00 .00 .00 .00 10.625.00 Dues and Subscriptions 6,094.55 .00 65.00 606.55 6,766.10 Insurance 12,480.30 4.040.58 34,249.02 35,211.16 85,981.06 Office Supplies 7,247.20 .00 684.90 1,702.19 9,634.29 Office Cleaning 4,550.00 .00 .00 2,600.00 7,150.00 Radio and Equipment Repairs .00 .00 396.61 .00 396.61 Vehicle Gas, Oil and Repairs 1,620.54 63,802.43 19.277.20 54,901.78 139.601.95 Equipment Repairs 1.723.87 .00 2,180.25 5,265.29 9,169.41 Telephone 9,077.39 .00 3,936.13 6,080.50 19,094.02 Travel and Training 11,444.63 .00 1.010.30 7,179.68 19.634.61 Supplies .00 .00 13.423.42 7,182.69 20,606.11 Fire Prevention Payments .00 .00 3.215.51 .00 3,215.51
-50- TOWN OF FARMERVILLE SCHEDULE B-1 FARMERVILLE, LOUISIANA CONTINUED MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE FISCAL YEAR ENDED JUNE 30, 2013
MAJOR GOVERNMENTAL FUNDS TOTAL GENERAL GARBAGE FIRE POLICE GENERAL EXPENDITURES FUND DEPARTMENT DEPARTMENT DEPARTMENT FUND General and Administrative Continued Fire Station Repairs .00 .00 E 2,309.31 $ .00 2,309.31 Fire Clothing Allowance .00 .00 7,473.00 .00 7,473.00 Prisoner's Expenditures .00 .00 .00 198.95 198.95 Dog Expense .00 .00 .00 2,211.95 2,211.95 Utilities 8,140 .44 .00 6,513.10 5,584.51 20,238.05 Asset Purchases 158,837 12 25,515.50 698.99 33,574.62 218,626.23 Grant Expense .00 .00 .00 10.668.00 10,668.00 IBM Lease Payments 3.710 68 .00 .00 .00 3,710.68 Fanners Market Building 775, 60 .00 .00 .00 775.60 Triad Phone Service 1,300 .00 .00 .00 .00 1,300.00 Miscellaneous 9,353 95 2,896.44 76.41 27,984.00 40,310.80 Christmas Tree 4,562 34 .00 .00 .00 4,562.34 Election Expense 5.787 55 .00 .00 .00 5,787.55 LSU Ag Center 12,500 00 .00 .00 .00 12,500.00 Code of Ordinances 700 00 .00 .00 .00 700.00 Website Expense 1.017 io ^ .00 .00 1.017.50 TOTAL EXPENDITURES 55 500.291.50 213,645.62 951.919.45 $ 2.270.016.12 OPERATING REVENUE OVER (UNDER) EXPENDITURES $ 214,240.72 $ (109.680.20) 89,656.29 (292,286.68) $_ (98.069.87)
TRANSFERS OUT (281,813.16) $ (19.571.67) (37,817.39) .00 (339.202.22)
TRANSFERS IN .00 $ 45.250.00 261,715.32 281,813.16 $_ 588,778.48
EXCESS OF REVENUE & OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER (USES) BEFORE EXTRAORDINARY $ (67.572.44) $ (84.001.87) $ 313,554.22 $ (10.473.52) $ 151,506.39
FUND BALANCE - JULY 1 84,001.87 462,689.85 805,315.50
FUND BALANCE - JUNE 30 104.779.98 $ .00 776.244.07 75.797.84 956.821.8_9
The notes are an integral part of these statements. See accompanying notes and auditors' report.
-51- TOWN OF FARMERVILLE SCHEDULE C FARMERVILLE. LOUISL\NA NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30, 2013
NON-MAJOR SPECIAL REVENUE FUNDS FARMERVILLE FARMERVILLE VOLUNTEER AREA FIRE RECREATION FIRE PROTECTION ASSETS SALES TAX DEPARTMENT DISIRICT Cash $ 102.411.03 $ 34,634.32 $ 10,901.12 Receivables Sales Taxes 40.255.81 .00 .00 Other Funds 8,083.81 .00 .00 Deposit - Workers Compensation 14,909.00 .00 .00 Certificate of Deposits 334,060.02 45.983.79 .00 TOTAL ASSETS 499.719.67 $ 80.618.11 S 10.901.12
LL\BILmES AND FUND BALANCE
LIABILITIES Vouchers Payables 13,506.21 $ .00 S .00 Accmed Liabilities s 5.251.00 .00 .00 TOTAL LL\BILITIES £1 18,757.21 $ .00 $ .00
FUND BALANCE Nonspendable $ 14.909.00 $ .00 s .00 Assigned 466,053.46 80.618.11 10.901.12 TOTAL FUND BALANCE 480,962.46 $ 80.618.11 $ 10,901.12
TOTAL LIABILITIES AND FUND BALANCE s_ 499.719.67 $_ $_ 10.901.12
The notes are an integral part of these statements. See accompanying notes and auditors* report.
-52- TOWN OF FARMERVILLE SCHEDULE C-I FARMERVILLE. LOUISIANA NON-MAJOR GOVERNMENTAL FUND COMBINING BALANCE SHEET JUNE 30,2013
NON-MAJOR CAPITAL PROJECTS FUNDS INFA- WATER TIF 2012 BONDS HIGHWAY STRUCTURE LCDBG USDA PROCEEDS CONSTRUCTION IMPROVEMENTS LCDBG GRANT GRANT EOUIPMENT GLORY ROAD DOZIER CREEK ASSETS Cash in Banks $ 73.015.15 S 40.190.25 S 50.00 S 201.09 S .00 $ 39.132.62 $ 62.71 TOTAL ASSETS S 40.190.25 $ 50.00 ^ 201.09 $ .00 $ 39.132.62 $ 62.71
LIABILmES AND FUND BALANCE
LIABILITIES Payable - Other .00 m $_ 50.00 $ 200.00 $ m $_ .00 1 .00 s .00 s Total Liabilities s .00 .00 s 50.00 S 200.00 S .00 S .00 EQUITY AND OTHER CREDITS Reserve for Capital Improvements s 73.015.15 40,190.25 $ .00 $ 1.09 S .00 S 39.132.62 S_ 62.71
TOTAL LIABILITIES AND FUND BALANCE 5 73.015.15 40.190.25 $_ 50.00 1 201.09 S .00 S 39,132.62 $ 62.71
The notes are an integral part of these statements. See accompanying notes and auditors' report.
-53- TOWN OF FARMERVILLE SCHEDULE C-2 FARMERVILLE. LOUISIANA NON-MAJOR GOVERNMENT FUND COMBINING BALANCE SHEET JUNE 30, 2013
NON-MAJOR DEBT SERVICE FUND 2012 S500,000 LEASE SALES TAX USDA BONDS BONDS PURCHASE ASSETS Investments, at cost of Amortized Cost s 111,856.13 $ 12,344.11 s 56,092.00 $ .00 Receivable - Water Depaitment .00 13.900.00 .00 .00 TOTAL ASSETS 111.856.13 $ 26.244.11 $ _ 56.092.00 $ .00
LIABILITIES AND FUND BALANCE
LL\BILrnES s .00 s .00 s .00 S .00
FUND BALANCE Nonspendable s 13.900.00 s .00 s .00 $ .00 Restricted 97,956.13 26,244.11 56.092.00 .00 Total Fund Balance s 111,856.13 s 26,244.11 s 56.092.00 $ .00 TOTAL LL\BILrnES AND FUND BALANCE L. L= 26.244.11 3— 56.092.00 J 00
The notes arc an integral part of these statements. See accompanying notes and auditors* report.
-54- TOWN OF FARMERVILLE SCHEDULE C-3 FARMERVILLE. LQUISL\NA NON-MAJOR GOVERNMENT FUND COMBINING BALANCE SHEET JUNE 30,2013
TOTAL ASSETS NON-MAJOR
Cash $ 480.890.53 Receivables Sales Taxes 40,255.81 Prepaid Insurance 14.909.00 Due To/From Other Funds 21,983.81 Restricted Assets Certificate of Deposits 380.043.81 TOTAL ASSETS S 938.082.96
LL\BILrnES AND FUND BALANCE
LL\BILrnES Voucher Payables S 13,506.21 Accmed Liabilities 5,251.00 Payable for Other Funds 250.00 Total Liabilities s 19.007.21 FUND BALANCE Reserved for Capital Improvements s 152.400.73 Nonspendable 28.809.00 Restricted 180.292.24 Assigned 557,572.69 Unassigned 1.09 Total Fund Balance s 919.075.75 TOTAL LL\BlLmES AND FUND BALANCE i- 938.082.96
The notes are an integral part of these statements. Sec accompanying notes and auditors' report.
-55- TOWN OF FARMERVILLE SCHEDULE D FARMERVILLE. LOUISIANA NON-MAJOR GOVERNMENT FUNDS COMBINING STATEMENT OF REVENUE EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30.2013
NON-MAJOR SPECL\L REVENUE FUNDS FARMERVILLE FARMERVILLE VOLUNTEER AREA FIRE IW ECREATION FIRE PROTECTION sALE S TAX DEPARTMENT DISTRICT REVENUES Taxes Sales Taxes s 478,231.94 S .00 S .00 Advalorem Taxes .00 .00 261.715.32 Miscellaneous Memberships 5,852.00 .00 .00 Youth Programs 6,952.09 .00 .00 Building Rental & Fees 12,800.00 .00 .00 Concessions .00 1,186.65 .00 Interest Eamed 3.671.15 154.81 17.40 Claibome Electric .00 898.70 .00 Others .00 1.559.82 .00 TOTAL REVENUES r 507.507.18 ll 3.799.98 L 261.732.72 EXPENDITURES General Govemment s 278.498.43 $_ 12,782.98 19.679.91 TOTAL EXPENDITURES 278.498.43 12.782.98 1- 19,679.91
EXCESS OF REVENUE OVER OJNDER) EXPENDITURES $_ 229.008.75 s (8.983.00) $_ 242,052.81 OTHER FINANCING SOURCES (USES) Operating Transfers In $ .00 $ 17,817.39 s .00 Operating Transfers Out (254,188.73) .00 (241.715.32) Total Other Financing Sources (Uses) E (254.188.73) 17.817.39 £ (241,715.32) EXCESS rOEFlClENCY) OF REVENUES AND OTHER USES SOURCES OVER (UNDER) EXPENDITURES AND OTHER (USES) s (25.179.98) s 8.834.39 $ 337.49
FUND BALANCE - JULY 1 506.142.44 71,783.72 10,563.63 FUND BALANCE - JUNE 30 1= 480.962.46 L= 80.618.11 L 10.901.12
The notes are an integral part of these statements. See accompanying notes and auditors' report.
-56- TOWN OF FARMERVILLE SCHEDULED-! FARMERVILLE. LOUISIANA CAPFTAL PROJECTS FUNDS - NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENTS OF REVENUE. EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE FISCAL YEAR ENDED JUNE 30. 2013
NON-MAJOR FUNDS - CAPITAL PROJECTS FUNDS INFA- WATER TIF 2012 BONDS HIGHWAY STRUCTURE LCDBG USDA PROCEEDS CONSTRUCTION IMPROVEMENTS LCDBG GRANT GRANT EOUIPMENT GLORY ROAD DOZIER CREEK REVENUES CDBG/LCDBG Funds S .00 .00 $ 44.408.20 S 307,286.31 $ .00 $ .00 S .00 Interest Income 556.85 60.94 .00 1.09 .00 _ 52.93 .00 Total Revenues $ 556.85 60.94 $ 44.408.20 $_ 307.287.40 $ .00 S 52.93 $ .00
EXPENDITURES Gloiy Road Constmction .00 00 s .00 s .00 .00 S 11.373.00 $ .00 Cost of Equipment .00 00 44,408.20 307,286.31 .00 .00 .00 Street Construction 881,414.89 00 .00 .00 .00 .00 .00 Legal Fees/Other 1.470.10 00 .00 .00 1.186.67 .00 .00 Total Expenditures 882.884.99 .00 s 44.408.20 $ 307.286.31 $_ 11,373.00 $ .00
EXCESS OF REVENUES OVER (UNDER) REVENUES $ (882.328.14) $_ 60.94 $ .00 $ 1.09 S (1.186.67) J_ (11.320.07) $. .00
EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES) (882.328.14) S 60.94 $ .00 S 1.09 $ (1,186.67) $ (11.320.07) $ .00
FUND BALANCE - JULY 1 .00 .00 1,186.67 50,452.69 62.71
FUND BALANCE - JUNE 30 73.015.15 40.190.25 $ .00 S 1.09 S .00 5_ 39.132.62 J_ 62.71
The notes are an integral part of these statements. See accompanying notes and auditors' report.
•57- TOWN OF FARMERVILLE SCHEDULE-D-2 FARMERVILLE. LOUISIANA NON-MAJOR GOVERNMENT FUND COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 2013
NON-MAJOR - DEBT SERVICES FUNDS 2012 $500,000 LEASE SALES TAX USDA BONDS BONDS PURCHASE REVENUES Interest Eamed $ 411.96 $ 89.47 $ .00 $ .00 TOTAL REVENUES $ 411.96 $ 89.47 $ .00 $ .00
EXPENDITURES Debt Service Principal Retirement 125,000.00 $ 13,899.09 15,000.00 15,719.48 Interest and Fiscal Charges 58,028.22 _ 7,788.91 19,965.00 3.852.19 TOTAL EXPENDITURES S 183,028.22 21,688.00 34,965.00 19,571.67
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ (182,616.26) $ (21,598.53) $ (34,965.00) $ (19,571.67)
OTHER FINANCING SOURCES (USES) Operating Transfer In $ 254,188.73 $. 26,488.00 71,265.00 19,571.67 Total Other Financing Soiirces(Uses) $ 254,188.73 $_ 26,488.00 $ 71,265.00 $ 19,571.67
EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING SOURCES (USES) $ 71,572.47 $ 4,889.47 $ 36,300.00 $ .00
FUND BALANCE - JULY 1 40,283.66 21,354.64 19,792.00 _ .00
FUND BALANCE - JUNE 30 $ 111.856.13 $ 26.244.11 $ 56.092.00 $ .00
The notes are an integral part of these statements. See accompanying notes and auditors* report.
-58- TOWN OF FARMERVILLE SCHEDULE D-3 FARMERVILLE. LOUISIANA NON-MAJOR GOVERNMENT FUND COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2013
NON-MAJOR FUNDS REVENUES TOTALS Taxes Sales Taxes $ 478,231.94 advalorem Taxes 261,715.32 CDBG/LCDBG Funds 351,694.51 Other Income Memberships 5,852.00 Youth Programs 6,952.09 Building Rental and Fees 12,800.00 Concessions 1,186.65 Interest Income 5,016.60 Claibome Electric 898.70 Others 1,559.82 TOTAL REVENUES $ 1,125.907.63
EXPENDITURES General Govemment $ 310,961.32 Debt Service Principal Retirement 169,618.57 Interest/Fiscal Charges/Legal 92,291.09 Constmction Cost 1.244,482.40 TOTAL EXPEhfDITURES $ 1,817.353.38
EXCESS OF REVENUE OVER (UNDER) EXPENDITURES S (691.445.75)
OTHER FINANCING AND SOURCES (USES) Operating Transfers In $ 389,330.79 Operating Transfers Out (495,904.05) Total Other Financing Sources (Uses) $ (106.573.26)
EXCESS (DEnCIENCY) OF REVENUE AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ (798,019.01)
FUND BALANCE - JULY 1 1,717.094.76
FUND BALANCE - END OF YEAR 919.075.75
The notes are an integral part of these statements. See accompanying notes and auditors* report.
-59- TOWN OF FARMERVILLE SCHEDULE E FARMERVILLE. LOUISIANA SCHEDULE OF INSURANCE IN FORCE JUNE 30. 2013
POLICY INSURANCE COMPANY NUMBER DATES TYPE COVERAGE COST PREPAID
Western Security 0601-18297290 07/03/13-07/13/14 LAPEHB#1 $ 10,000.00 5 161.00 $ .00 0601-18295297 07/03/13-07/03/14 LA Collector Clerk - Theon Butler 10,000.00 100.00 .00 0601-68716392 04/09/13-04/09/14 LA PE Position Schedule #1 10,000.00 100.00 .00 0601-18306710 09/01/13-09/01/14 LA P E Position Schedule # 1 10,000.00 100.00 .00 0601-18295749 07/18/13-07/18/14 LA Clerk & Tax Collector- Gay Nell Pepper 300,000.00 1,750.00 .00 0601-15243804 10/01/12-10/01/13 Mayor Stein Baughman 100,000.00 350.00 .00 LA Supervisor of Public Service 0601-13355742 08/22/13-08/22/14 Mike Allen 25,000.00 100.00 .00 5 2,661.00 One Beacon Insurance 791-00-0650-0000 05/01/13-05/01/14 Commercial Cieneral Liabilities Commen;ial General Liability R 38,148.00 $ .00 General Aggregate $ 2,000,000.00 Products - Completed Operations 2,000,000.00 Personal A - Bodily Injury & Property Damage 1,000,000.00 Personal B - Personal & Advertising Injury 1,000,000.00 Damages to Premises Rental 300,000.00 Coverage C - Health Care & Social Service 1,000,000.00 Failure to Supply 500,000.00 Sexual Abuse 300,000.00
Professional Liability Coverages 15.204.00 .00 Public Officials Errors & Omissions $ 1,000,000.00 Public Officials Employment Practices 1,000,000.00 Public Officials Employment Benefits Administration 1,000.000.00 Law Enforcement Liability 1,000,000.00
Business Auto 61.184.00 .00 Liability Insurance 1,000,000.00 Louisiana Uninsured Motorists Coverage - Bodily Injuiy 300.000.00 $ 114.536.00 $ 95,447.00
American Altemative Ins. VFIS-TR-2067220-00 05/01/13 - 05/01/14 Emergency Service Organization Portable Equipment $ 2.685.00 $ .00 Autos - Liabilities $ 1,000,000.00 16.241.00 .00 ** Guaranteed Replacement Cost 18.926.00 15,772.00
EMC Insurance Company 4X8-50-03-14 01/01/13-01/01/14 Property & Inland Marine Policy 16,665.57 $ 8,333.00 Buildings $ 2,640,000.00 Personal Property 895.000.00 Other Property 425.000.00
Louisiana Workers Compensation Corporation 01/01/13-01/02/14 Workers Compensation $ 96,946.00 $ 33,753.00 Bodily Injury By Accident $ 1,000.000.00 Bodily Injury By Disease - Policy Limit 1,000.000.00 Bodily Injury By Disease - Each Employee 1,000,000.00
Travelers 105877929 01/01/13-01/01/16 Crime Policy 1,275.00 $ 637.00 Employee Theft 50.000.00 Forgery or Alteration 50,000.00 On Premises 25,000.00 Claim Expense 5,000.00
TOTALS $ 251.009.57 $ 153.942.00
The notes are an integral part of these statements. See accompanying notes and auditors* report.
-60- TOWN OF FARMERVILLE SCHEDULE-F FARMERVILLE. L0U1SL\NA CASH ACCOUNTS AND INVESTMENTS JUNE 30, 2013
(JOVERNMENTAL BUSINESS-TYPE GENERAL FUND ACTIVITIES ACTIVITIES TOTAL FUNDS Checking General Fund $ 127,516.03 S .00 $ 127.516.03 Property Tax Account 37,554.24 .00 37.554.24 Payroll Account 1,685.25 .00 1.685.25 Accounts Payable 1,061.05 .00 1.061.05 Petty Cash 800.00 .00 800.00
FIRE DEPARTMENT C!)hecking 60,247.39 .00 60,247.39 Payables 6.00 .00 6.00 Savings 609.161.63 .00 609.161.63 Reserve 120,285.19 .00 120.285.19
POLICE DEPARTMENT Checking 47.234.48 .00 47,234.48 Police Payroll (546.94) .00 (546.94) Police Payable 105.82 .00 105.82 Petty Cash 88.00 .00 88.00
DEBT SERVICE FUNDS Savings/Certificate of Deposit Sales Tax Bond Reserve - 2002 22,192.67 .00 22.192.67 Sales Tax Reserve 89,663.46 .00 89.663.46 USDA Sinking Fund 3,058.79 .00 3,058.79 USDA Reserve Fund 5,268.84 .00 5.268.84 USDA Depreciation and Contingency 4.016.48 .00 4,016.48 TIF - Escrow Account 56,092.00 .00 56.092.00 LC:DBG Program 50.00 .00 50.00
UTILITY FUND Water Department Checking Regular .00 201,164.82 201,164.82 Water Meter .00 10,724.64 10,724.64 Accounts Payable .00 78.30 78.30 Payroll .00 (3,122.63) (3.122.63) Petty Cash .00 200.00 200.00 Certificates of Deposits Water Meter Account .00 176,682.67 176.682.67 Water .00 52.409.55 52,409.55 Water Departinent Reserve .00 106,316.19 106,316.19 Sewer Department Checking Sewer .00 21,144.53 21,144.53 Payroll .00 974.09 974.09 Sewer Revenue Bond Account .00 232,241.49 232,241.49 Savings/Certificate of Deposits Sewer Bond Reserve .00 38,373.61 38.373.61 Sewer Depreciation and Contingency .00 142,378.29 142,378.29
VOLUNTEER FIRE DEPARTMENT Checking 34,634.32 .00 34.634.32 Certificate of Deposit 45,983.79 .00 45,983.79
FARMERVILLE AREA FIRE PROTECTION Checking 10,901.12 .00 10.901.12
-61 TOWN OF FARMERVILLE SCHEDULE E FARMERVILLE. LOUISIANA CONTINUED CASH ACCOUNTS AND INVESTMENTS JUNE 30.2013
GOVERNMENTAL BUSINESS-TYPE ACriVITIES ACTIVITIES TOTAL FUNDS CAPITAL PROJECTS FUND Dozier Creek Checking $ 62.71 S .00 $ 62.71 TIF Funds-S500.000 Bonds Checking 39,132.62 .00 39,132.62 Capital Outlay Checking 40,190.25 .00 40,190.25 2012 Bond Construction Checking 73,015.15 .00 73,015.15 LCDBG (jrant Infrastructure 201.09 .00 201.09 SALES TAX FUNDS Checking Regular 186.380.97 .00 186.380.97 Payroll (139.83) .00 (139.83) Payables 3.300.00 .00 3.300.00 Savings Street Sales Tax Fund 443.469.60 .00 443.469.60 Street Reserve Fund 58,889.77 .00 58,889.77 2002 SALES TAXES - RECREATION Checking 102,411.03 .00 102.411.03 Certificate of Deposit 334.060.02 .00 334,060.02
GRAND TOTALS S 2.558.032.99 $ 979.565.55 $ 3.537.598.54
The notes are an integral part of these statements. See accompanying notes and auditors* report.
-62- 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 AND THE AGGREGATE REMAINING FUND INFORMATION GARRETT & GARRETT CERTIFIED PUBLIC ACCOUNTANTS 119 PROFESSIONAL DRIVE WEST MONROE, LOUISIANA 71291
CAROLYN V. GARRETT PHONE: 318 322-0845 JUDY D. GARRETT FAX: 318 322-5577
February 3,2014
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 AND THE AGGREGATE REMAINING FUND INFORMATION
To the Honorable Mayor Stein Baughman and Members ofthe Board of Aldermen and Alderwomen Town of Farmerville, Louisiana
We have audited, in accordance with the 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, the fmancial statements ofthe govenunental activities, the business-type activities, each major fimd and the aggregate remaining fimd information ofthe Town of Faimerville, Louisiana, as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the Town of Farmerville, Louisiana's basic financial statements, and have issued our report thereon dated February 3,2014.
Internal Control Over Financial Reporting
In plarming and perfomiing our audit ofthe financial statements, we considered the Town of Farmerville, Louisiana's intemal control over financial reporting (intemal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of Fannerville. Louisiaiu's intemal control. Accordingly, we do not express an opinion on the effectiveness ofthe Town of Farmerville, Louisiana's internal control.
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 fimctions. 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. A significant deficiency is a deficiency, or a combination of deficiencies, in intemal control that is less severe than a material weakness, yet important enough to merit attention by those charged with govemance.
Our consideration of intemal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in intemal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in intemal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify certain deficiencies in intemal control, described in the accompanying schedule of findings and questioned costs that we consider to be significant deficiencies. (See findings 13-01 -13-06 pages 77 - 80).
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Farmerville. Louisiana's financial statements are five fiom material misstatement, we performed test 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 fmancial 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.
-63- To the Honorable Mayor Stein Baughman and Members ofthe Board of Aldermen and Alderwomen Town of Farmerville, Louisiana Page 2
Town of Farmerville, Lonisiana's Response to Findings
The Town of Farmerville, Louisiana's response to the fmdings identified in our audit is described in the accompanying schedule of findings and questioned costs. The Town of Farmerville, Louisiana's response was not subjected to the auditing procedures applied in the audit ofthe financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
Hie purpose of this report is solely to describe the scope of our testing of intemal conbx>l and compliance and the results of that testing, and not to provide an opinion on the effectiveness ofthe entity's intemal control or on compliance. This report is an integral part of an audit performed in accordance with Govemment Auditing Standards in considering the entity's intemal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Garrett and Garrett, CPAS
West Monroe, Louisiana February 3.2014
•64- PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30. 2013
Findings related to the Financial Statements that are required to be reported under Govemment Auditing Standards.
12-01 Sewer and Garbage Only Utility Customers: (IC) (from finding 11-11)
The Town has a verbal agreement with another water district to service their customers with sewer and garbage services. Some customers receiving water from this district have their own individual sewer systems. These individual sewer systems are supposed to be inspected by the state's health inspector. Because the water district does not inform the Town of any changes with these customers, the Town is having a problem making sure the customers are charged for these services.
It came to our attention during this engagement from a conversation with the health inspector that at least one customer tied into the Town's sewer system and has not been billed for this service. At this point, we do not know if the individual tied into the system without the knowledge ofthe Town or if the Town failed to set the customer up in their billing system.
Recommendation:
We recommend the Town find out exactly who is tied into their sewer system and take the appropriate procedures to correct this situation. We recommend the Town confer with legal counsel to see if the Town can document this verbal agreement with the water district.
Action Talcen:
The Town Clerk is in contact with the health inspector to receive a list ofthe individuals that have approved individual sewer systems.
Management's Corrective Action Plan:
The Clerk will provide the water supervisor with the health inspector's list of home addresses that have sewer systems to compare against the Town*s list of customers. Any home addresses that are missing fi^omthes e lists are to be investigated by these parties and appropriate steps will be taken to either include the homes on the Town's billing system or the health inspector's list.
Action Talcen in 2013:
Per the water supervisor the customer referred to above is not tied into the Town's system. The Town has not solved the problem with the water district customers (See finding 13-02).
Person Responsible:
Mike Allen, Water Supervisor
Date to Complete:
June 30,2013
Status:
Uncleared
-65- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30, 2013
12-02 Improper Use of Credit Cards gC)
The Town has several different types of credit cards that employees use to purchase gasoline and other supplies. The gasoline cards are kept by each employee that drives a Town owned automobile. Some of these cards are kept in the glove compartment ofthe automobile while other employees keep the cards on their person.
In one situation, an en^loyee*s son used the Town issued card to piuxhase gasoline for his personal use. The employee admitted that the son had been in the Town*s vehicle when the employee had used the card to fill up the gas tank ofthe car. The total amount purchased by the son was $957. The Town's clerk caught the theft within one billing cycle; the proper authorities were notified and the son was arrested and tried. The judge ordered restitution ofthe theft to the Town. As of December 2012, the Town has not received reimbursement firomth e son.
#2
Although the Town's verbal policy does not allow employees to purchase personal items with the Town credit cards, some ofthe Town's employees are still purchasing personal items. These items are promptly paid by these individuals, but it is not good intemal control to allow this to continue. The Town's policy does not include a penalty or actions to be taken by management for the violation of Town policy.
#3
In one transaction, an employee ofthe Town purchased a $100 gift card with a store credit card. From my inquiry with management this employee needed money to pick up an item out of town. There are no receipts or other documents to verify how the money was used. Since the gift card was a credit card, we assumed the company would accept a regular credit card which this employee also possesses.
#4
According to the Town*s business travel policy, meals and entertainment are to be paid on a per diem basis based on the number of days of travel or actual expenses. Some ofthe employees use their credit cards for meals instead ofthe per diem. In our review ofthese charges, most have some documentation for the charge and were reasonable, but some did not include the invoice that shows the number of people. We were also not provided with any written dociunentation on the number and the names ofthe people included on the ticket or tickets.
Recommendation:
We recommend the Town review their automobile use policy and develop a written credit card policy. The policy should include wording that has penalties to the employee for lack of security of their credit cards and violation ofthe policy. The automobile policy should include wording that limits the use ofthe automobile to commuting to and fi^m work and limits the employees fi-om allowing passengers in the automobile that are not associated with the Town, such as friends and family members.
We recommend the Town standardize their travel policy to not include the use of credit cards for meals and entertainment. A number of the professional organization*s conventions include spouses with their activities. The Town cannot pay for the meals or extra fees associated with the spouse. The per diem should eliminate the problem because of a family member's accompaniment with the employee. This policy should also have an exception for parties or meals in which one employee is paying for the business meal that includes several employees or other associates ofthe Town. This exception should be in compliance with the Intemal Revenue's guidelines for business meals and entertainmem.
-66- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30. 2013
Actions Talcen:
The Town has a written credit card policy that is set for the coimcil meeting*s agenda in 2013. Each employee that has a credit card signed an agreement setting forth these policies.
Management's Corrective Action Plan:
The Town will review their automobile use policy and make the necessary adjustments.
Action Talcen in 2013:
The Town did not receive any reimbursement for the illegal use ofthe Town's gas credit cards. In fiscal year 2014, the Town is starting to get monthly reimbursements from the defendant.
In our review ofthe credit cards in fiscal 2013, we did not find any issues of noncompliance with the Town's credit card policy.
Person Responsible:
Gay Nell Pepper, Town Clerk
Date to be completed:
June 30, 2013
Status:
Cleared
12-03 - Police Tickets: (IC) (from finding numbers 11-02 and 11-08)
The Town does not account for the police ticket numbers after the tickets have been written. All tickets are filed in alphabetic order. During our review ofthe tickets, there are several missing ticket nimibers. During our review year, the police department was keeping the voided tickets in storage and was not available to us for review. Tickets written on juveniles are sent to the court and records are not maintained at the Town. In oiu- review ofthe ticket system policy, there is no mention of who is responsible for the final accounting ofthe tickets.
Recommendation:
We recommended in 2011 that the ticket numbers should be accounted for. We recommended the void tickets be processed through the ticket system and the ticket for juveniles be noted as juveniles. We recommend that the Town review their police ticket policy to include who is responsible for logging in the final accounting for each ticket.
Actions Talcen in 2012:
The police department is now giving the voided tickets to the business office to file in their files. According to the clerk, they cannot enter voids in their computer system, so they maintain a separate file for voided and non-processed tickets.
-67- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30. 2013
Management's Corrective Action Plan:
The Town's management will review their ticket policy to address the final accoimting for each ticket. The Town will also account for the processed police ticket numbers. The police department is to log in the juvenile ticket numbers with a description of juvenile to account for the number.
Action Taken in 2013:
At the end of fiscal 2013, the Town hired an accountant to review the police tickets on a quarterly basis. They did not account for ticket numbers. The police department logged in all ticket numbers in their log except the voided tickets.
Person Responsible:
Gay Nell Pepper, Town Clerk M. Stein Baughman, Mayor, Mayor
Bim Coulbertson, Police Chief
Date to be completed:
June 30,2013
Status:
Uncleared 12-04 Recreation Center qC) (from findings 11-03 and 11-09)
The Center operates a gym that is used by members ofthe Center and special functions for the community. For these services, the Center charges building rentals and membership fees which are collected by the Center. In addition to the use ofthe building, the Center organizes athletic activities for youth and adults such as football, soccer and basketball in which they charge a fee. The Center has four full time employees; two are salaried while the other two are hourly employees.
In prior years, the Center has had problems with their accounting of fees charged, the timely depositing ofthese fees to bank, maintenance of their membership billing system, their compliance with the approved fee stmctur^ and other general documentation ofthe building rentals.
Recommendation:
We had recommended in 2011 that the fees be paid to the Town's business office, to discontinue the $2 daily fee, include the Center's billing through the Town*s billing system and to generally account for the revenue in the business office. The other recommendation was to correct these areas in the Center if the first recommendation was dismissed. In either case, the business office is to prepare a calendar of events for the Center.
Actions taken in 2011:
None
-68- TOWN OF FARMERVILLE FARMERVILLE, LOUISIANA PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30. 2013
Actions taken in 2012:
In 2012, the Center started turning in forms to the business office indicating when the Center is rented. The Town did not prepare a calendar of events and we were not provided with an updated members list. The daily receipts and sign in sheets are still not tumed into the business office timely and the money amounts may or may not equal the amount of money tumed in.
Recommendation for 2013:
We recommend the Town's business office have a calendar of events for the Center posted on their web site or at the business office and the Center. Our recommendation is still to transfer all the collections of fimds to the Town's business office. However, the council did not want to discontinue the $2 fee and the transfer of collection of this fee to the business office is not feasible. We suggest either ofthese two recommendations: the Center can write receipts for each ofthe $2 fees or indicate on the sign-in sheets who paid $2 fees to the Center. The Center needs to review their cash reconciliation procedures. We could not tell from the current documents given to the business office whether the amount ofthe fees received equaled the receipts. We do recommend that the schedule ofthe building rental and the collection ofthe fees be handled by the business office. We also suggest that these procedures be documented and reviewed by the appropriate parties. The Center's written receipt numbers should be accounted for in the same marmer as police tickets.
Management's Corrective Action Plan:
The Town bought pre-numbered three copy receipt books that the Town Clerk controls. The Town has a log ofthe receipt books and has the Center employees sign for each receipt book. The Center has to give a receipt copy to the business office when they tum in the moneys they receive. The Center is still receiving $2 fees in which receipts are not written. The $2 fees are indicated on the sign in sheets; however, the sign in sheets are not a good source of documentation for these fees since most ofthe money received is not indicated on the sheets. These sheets also include signatures of members that do not pay the $2 fee. Receipts are written for rental ofthe building, monthly membership fees and special activities such as athletic league fees.
The Town will review the above recommendations and make the appropriate adjustments to the Center's operations.
Action Taken in 2013
The Town has improved their documentation ofthe Recreation Center's cash collections over prior years. The Town still does not have a calendar of events, but the Center is giving the business office enough information to prepare a calendar with the documentation they give the business office. The Town does not think it feasible for the business office to collect the fees ofthe Center. The Center still has some problems with their cash collections procedures. The Town started doing quarteriy reviews ofthe receipts in late fiscal 2013.
Person Responsible:
M. Stein Baughman, Mayor
Date to be Completed:
June 30,2013
Status: Uncleared -69- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30, 2013
12-05 Financial Statements Budget Comparisons: (IC)
The Town does not prepare and issue monthly financial statements to their council members. The financial statements need to include budget comparison as the council is responsible for the Town's compliance with the yeariy budget.
Recommendation:
We recommend the Town prepare and issue the required statements to the council as soon as possible.
Management's Corrective Action Plan:
The Town plans to issue the financial statements at the next board meeting.
Action Taken in 2013:
The Town is fiimishing the council with monthly financial statement infonnation including the budget comparison.
Person Responsible:
Gay Nell Pepper. Town Clerk
Date Completed:
November 2012
Status:
Cleared
12-06 Purchases Orders: (IC) (from finding 11-05)
The original finding deals with the need for the Town to standardize and centralize their purchasing functions. The Town requires a purchase order approved from the mayor for any purchase that is $500 or more. The purchase orders should include a description of what is being purchases, estimated cost, the department, type ofthe expense and general ledger number. Each department supervisor purchases their own supplies.
Since the Town does not have a centralized purchasing function, the Town is paying a number of people to shop. The Town has a problem with the address ofthe bills going to the wrong address.
Recommendation:
The original recommendation is to drop the amount ofthe required approval threshold from $500 to $300, to require the purchase orders to be distributed to the mayor, the accounts payable clerk and vendor, make sure the address used on the orders are to the business office address and to have the an approved vendor list. The purchase should also include a description of what is being purchases, estimated cost, the department, type of expense and general ledger number. The purchase order should include information that refers to a project or a work order.
•70- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30. 2013
Actions taken in 2012:
Management decided to keep the $500 threshold for purchase orders. The Town did send out letters to vendors to change their mailing address to their official post office box and have continued as invoices are received with an incorrect address. The council chose not to have an approved vendor list.
The information on the purchase orders is inconsistent. Some purchase orders include information about the purchase while others seem to be filled out after the invoice is received. The infonnation is also very generic, for example the items purchased is "supplies". The Town chose not to centralize their purchasing. Some ofthe purchase orders and invoices are signed while others are not. A significant number ofthe invoices did not include enough information to tell a third party reader what was actually ordered. All invoices were however, approved by one council member and the mayor. The purchase orders are not being distributed since quite a few had all copies given to the accoimts payable clerk to file with the invoice.
Actions taken or planned in 2013:
The Town will include the required information on the purchase orders and distribute the purchase order to the required people. The Town will consider centralizing the purchase of certain supplies for example office supplies and cleaning supplies.
Action taken in 2013:
The Town did not centralize the purchases. Ofthe invoices examined all were approved by the Mayor and Council member. The major purchases had purchase orders attached and signed.
Person Responsible:
M. Stein Baughman, Mayor
Date to be Completed:
June 30,2013
Status:
Cleared
12-07 Persona! Use of Vehicles: HC) (from finding 11-12)
Description of Findings:
Some ofthe Town's employees use the Town's vehicles to commute to work from their home. In general, employees using employer vehicles are subject to tax on the value ofthe personal use. If the business use ofthese vehicles is substantiated, it is excludable as a working condition fiinge benefit under IRC 132(f). For these vehicles, any amount not substantiated as business use must be included in wages. Substantiation generally requires keeping daily records of vehicle use. These substantiation requirements do not apply to a "qualified nonpersonal use vehicle." A qualified nonpersonal use vehicle is one that, by design, is not likely to be used more than minimally for personal purposes. This includes vehicles such as constmction or farm vehicles, school buses, specially modified pickup tmcks, etc. (For a complete list, see Publication I5-B) -71- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30. 2013
Use ofthese vehicles is considered a working condition fringe benefit and does not require substantiation for use to be excluded from the wages ofthe employee. Passenger automobiles are generally not classified as qualified non personal use vehicles because by nature they are more likely to be used for personal use, they are considered "listed property" under IRC 280 F (d)(4).
Clearly marked police or fire officer vehicles are also treated as qualified nonpersonal use vehicles, if the following conditions apply: The employee must always be on call. The employee must be required to use the vehicle for commuting. The employer must prohibit personal use (other than commuting) for travel outside ofthe officer's or firefighter's jurisdiction. A police or fire vehicle is cleariy marked if it has insignia or words which make it clear that it is a police or fire vehicle. A marking on a license plate is not a clear marking for this piupose. According to the regulations, the exclusion for a clearly marked police or fire vehicle applies only to a vehicle that is required to be used for conmiuting by a police officer or fire fighter who, when not on a regular shift, is on call at all times. Other than commuting, personal use ofthe vehicle, outside the limit ofthe police officer's arrest powers or the fire fighter's obligation to respond to an emergency, must be prohibited by the govemmental unit.
Recommendation:
The Town needs to review all vehicles and set up policies which comply with the IRS regulations.
Management's Corrective Action Plan for 2010:
The Town will document the reasons for the commuting use ofthese vehicles. For any personal use other than commuting, the cost which will be added to the employees taxable income subject to all employer taxes and benefits.
Action Taken in 2010:
The Town has not completed the personal use information at June 30. 2011.
Action Taken in 2011:
The Town documented the reason for first responders (fu^men and police officers) to use their vehicles for commuting- The Town has not included the personal use of vehicles of non-first responders on their W-2s which is a violation of IRS regulations.
Management's Corrective Action Plan for 2012:
The Town will include the personal use of vehicles on each employee's W-2 based on the prevailing IRS mileage rate.
Action Taken in 2012:
The Town did not include the income on the 2011 W-2s.
Management's Corrective Action Plan for 2013:
The Town is in the process of calculating the amount of income to include on each employee's W-2 and to pay the required employment taxes to the taxing agencies.
Action Taken in 2013:
The personal use ofthe Town's vehicles was added to the W-2's at December 31.2012.
-72- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30, 2013
Name of Contact Person:
Gay Nell Pepper, Town Clerk
Date Completed:
December 31.2013
Status:
Cleared
12-08 - Bus Drop off of School Age Children: (IC)
The Recreation Center allows some ofthe private elementary schools to use the Center as a place to drop off children after school. The Center takes care ofthe children until they are picked up by an adult at no charge.
Per our conversation with the Center's employees, some ofthe children are not picked up timely, the Center does not have a list ofthe children that are to be dropped off or who is to pick up the children.
Recommendation:
The Town needs to check with legal counsel about any liability they have by allowing children to stay at the Center and what the employees are do if the children are not picked up.
Management's Corrective Action Plan:
The Town will discuss this situation will their attomey.
Action Taken in 2013:
The Town sent out letters to the parents but failed to collect signed release forms.
Recommendation:
The Town supervisors* and the Town's attomey need to prepare a liability release form for all parents or legal guardian to sign on any child dropped off at the Recreation Center. The Town also need to address the fees charge for use ofthe Recreation Center for any child dropped off after school.
Name of Contact Person:
M. Stein Baughman, Mayor
Caroline Gatson, Councilwoman - Recreation Department Liaison
Date to be Completed:
June 30.2014
Status:
Uncleared -73- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30. 2013
12-09 Overtime Policy: (\C)
The overtime policy is not addressed in the Town's employment manual. From our conversations with some ofthe Town's employees, they are unsure when their overtime rate goes in affect.
Reco mmen dation:
The Town needs to include their overtime policy in their employee manual.
Management's Corrective Action Plan:
The Town will review the calculation for overtime pay, have the council approve the policy and document their policy in the employee manual.
Action Taken in 2013:
The en^loyee manual was updated. On page 7 ofthe employee manual the overtime policy is explained. Employees had to sign that they had received a copy ofthe policy.
Name of Contact Person:
M. Stein Baughman, Mayor
Date Completed:
January 2013
Status:
Cleared
12-10 Fixed Assets, Debt Service Fund, Capital Proiects Fund,; Farmerville Area Fire District flC) (from finding 11-06)
The Town does not maintain a general ledger for these fimds. The information is assembled from different sources to add to the financial statements at year end.
Recommendations:
The Town needs to set up a general ledger for these fimds.
Management's Corrective Action Plan:
The Town will set up these fimds.
Action Taken in 2010:
The Town had not set up these fimds at June 30, 2011.
•74- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30, 2013
Action Taken in 2011:
The Town set up these accounts in fiscal 2012 and plans to maintain these ledgers.
Action Taken in 2012:
Although the Town set up the accounts in their accounting system, they did not record any transactions.
Management's Corrective Action Plan:
The accounts are set up on C^ick Books files. The Town ordered checks to use to record the transactions and will record all transactions on these ftmds.
Action Taken in 2013:
The Town hired an accountant in June 2013. The accountant is in the process of setting up the ledgers and recording all transactions. The employee did not have time to complete before June 30, 2013.
Name of Contact Person:
Gay Nell Pepper, Town Clerk
Date to be Completed:
June 30, 2014
Status:
Uncleared
12-il Uniforms: flC^
The Town supplies uniforms for their Town employees to identify them to the general public as employees ofthe Town. Other than the police department and fire department, the uniforms are shirts, jackets or safety clothes such as reflective vests. In our review of the uniforms purchases of the Town, each department orders their own shirts. Most have the Town indicated on the article of clothing however, some clothing items are ordered that do not have the Town's logo or name. Also, items of clothing other than shirts are ordered including pants.
Recommendation:
The Town should have a uniform policy in their personnel handbook as to what happens to the clothing if the employee terminates their employment with the Town. The Town needs to standardize the purchase ofthe uniforms to include what clothing items can be purchased and an approved list of vendors. The Town should make sure that the clothing at a minimum includes the Town's name in a prominent position on the clothing.
If the item does not include the Town's name then the item is considered personal and should be included in their income and is subject to the appropriate employment taxes. We will suggest that the purchase ofthese items be prohibited and the appropriate sanctions be taken into account against the purchaser.
•75- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA PRIOR YEAR RECOMMENDATIONS AND STATUS OF RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30, 2013
Management's Corrective Action Plan:
Management will discuss the recommendation and take the appropriate actions.
Action Taken In 2013:
The Town now sends new uniforms to have them embroidered with the Town's name before the uniforms are given to the employees.
Name of Contact Person:
M. Stein Baughman. Mayor
Date Completed:
June 30, 2013
Status:
Cleared
12-12 2012 Financial Statements: gC)
The Town's financial statements are due to the Louisiana Legislative Auditor's office by December 31 each year. If the Town expends $500,000 or more in federal financing, the financial statements are due to the federal govemment 30 days from the date the report is released.
Due to some inconsistencies with the format, wording and other information in the financial statements, the financial statements were recalled and reissued on February 26, 2013. These problems caused the reports to be filed late to both the state and federal govemment.
Management's Corrective Action Plan:
Management will take steps to make sure the reports are filed on time in the fiiture.
Action Taken in 2013:
The fmancial statements were issued on Febmary 26, 2013
Name of Contact Person:
M. Stein Baughman, Mayor
Date Completed:
Febmary 26, 2013
Status:
Cleared
-76- SCHEDULE OF FINDINGS AND QUESTIONED COSTS TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA SCHEDULE OF FINDINGS AND OUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2013
Findings related to the Financial Statements that are required to be reported under Govemment Auditing Standards.
13-01 Recreation Center Cash Receipts: Internal control (from 2012)
Condition - The Center collects cash receipts for activities ofthe Center. The Center uses prenumbered receipt books which are controlled by the Town's business office. The Center has two books outstanding because one is used at the Center while the other receipt book is used by the director for special athletic programs in the field. The Center has a daily $2 membership fee in which receipts are not written. The receipts and cash are to be given to the Town's business office cashiers daily. In our review, we found that receipts are not accounted for when received by the cashiers and the Center does not take the collections to the business office on a daily basis.
Cause - The Town does not have policies to monitor the procedures ofthe Center as to their cash collection practices.
Effect - Because the business office cashiers are not checking the receipt numbers that are received from the Center, it is likely that some receipts will be missing from the copies given to the cashiers and the cash received may not match the receipts written. Since the Center does not tum their collections in on daily basis, cash collections could be misplaced or stolen.
Reconmiendation - We recommend that the Center only collect the $2 daily membership fees. All other cash collections are to be processed by the business office. If this is not feasible and the Town will continue to have the Center collect fees, then the Center should be required to tum in all collections each day at the end ofthe day. The Center should write a receipt for the $2 daily fees. They should not keep cash overnight in the Center and never over the weekend. The receipt numbers from the Center should be accounted for by one ofthe business office personnel.
Management's Response - The business office cashiers have started checking that all the receipts are accounted for and make sure the receipts received equal the cash received. The Town will monitor that the cash collections are turned in daily to the business office by the Center. The Town has also started to review the cash collections ofthe Center on a quarterly basis. In June the Town hired an accountant to monitor several functions ofthe Town, one being the cash collections ofthe Recreation Center.
Name of contact Person:
M. Stein Baughman, Mayor
Date to Complete:
June 30, 2014
13-02 Utility Billing: Non-water customers: Internal Control (from 2012)
Criteria - The Town reads the water meters of customers each month to determine the amount to be billed for services. Some ofthe customers only receive sewer and garbage services. In our review ofthese customers, some did not have meter readings, while other customer meter readings seemed low.
Cause - The Town has an unwritten agreement with another water district to fumish their water customers with sewer and garbage services. The Town cannot stop services for sewer customers for nonpayment as they can for water customers. Since the water district has not fiuTiishth e Town with the meter readings for these customers, the Town has to read the meters as well.
-77- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA SCHEDULE OF FINDINGS AND OUESTIONED COSTS FOR THE YEAR ENDED JUNE 30. 2013
Effect - The Town has no way to collect for unpaid service other than legal action against the customers. Since the customer does not have to ask the Town to tum services on, there is no procedure to insure that new customers in this area are receiving bills. Also, there are no procedures to stop charges for customers that leave the residences in this area and do not notify the Town to stop the services.
Recommendation - We recommend that the Town of Farmerville pursue a written agreement with the water district that would give the Town the right to take actions to collect unpaid bills from the water district's water customers as well as receive infonnation from the water district on a more timely basis. The Town should monitor the meter readings for these customers to make sure that they have accurate meter readings.
Management's Response - The Town's attomey prepared legal documents to address these issues and has contacted the water district's president and attomey. The document has not been signed by the water district as ofthe date of this report. The water district is supposed to give the Town the monthly meter readings per the legal dociunents, however until the district complies with this request, the Town needs to make sure they read the meters and process this information to the bills for the sewer services
Name of contact Person:
Mike Allen, Utility Supervisor
Date to Complete:
June 30,2014
13-03 PoUce Tickets: Internal Control (from2012)
Criteria - Police Tickets are accoimted for and processed by the Town's business office after the police department writes the tickets. The business office logs in the tickets into a computerized logging system, collects payments, and runs the court. In our review ofthe police tickets, ticket numbers are not accounted for or maintained in numeric order causing tickets to be missing from the ticket log.
Cause - Although the Town does a quarterly audit ofthe police tickets, the Town's business office and the police department do not maintain a numeric file ofthe police tickets and does not have procedures to accoimt for all outstanding ticket numbers. The business office's computer system will not allow voided tickets to be logged in preventing their computer system from maintaining a numeric list.
Effect - The Town may lose revenue because tickets are not processed.
Recommendation - We recommend the Town maintain one file in numeric order. We also recommend the Town develop procedures in which the outstanding ticket numbers are accounted for and processed.
Management's Response - The Town has started a numeric file ofthe ticket numbers in October 2013. Along with the quarterly review ofthe tickets, the Town's internal auditor will review that all outstanding ticket numbers are logged in and processed through the Town's ticket system.
Name of contact Person:
M. Stein Baughman. Mayor
Date to Complete:
June 30.2014 -78- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA SCHEDULE OF FINDINGS AND OUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2013
13-04 Fixed Assets, Debt Service Fund, Capital Proiects Fund, Farmerville Area Fire District (from 2012) Internal Control
Criteria- The Town does not maintain a general ledger for the above ftmds. The information is assembled from different sources to add to the financial statements at year end. The Town needs to set up general ledgers for these fimds.
Cause- These ftmds are not included in the Town's main computer system for their general ledger.
Effect- Because the Town does not prepare financial statements on these fimds, management would not have a complete financial record ofthe Town's operations. This may cause the Town's budget to be incorrect, as well as other enors.
Management's Response - In June 2013, the Town hired an accountant. The accountant set up all ofthese ledgers except the Fire District records and fixed assets . The fire chief is to give the information to the accountant to maintain a fimd for these records. The accountant will set up records for the fixed assets.
Name of contact Person:
Gay Nell Pepper, Town Clerk
Date to Complete:
June 30,2014
13-05 Utility Service Procedures: Internal Control
Criteria - The Town has procedures to start and stop utility services when requested by the customer. In our review of the customer locations, we observed several locations that had occupants who did not receive a bill but have utility services. The Town did not have any documents on file to indicate that these customers requested utility services.
Cause - The Town has no procedures in place to check that billing locations are receiving bills for services. The Town has had problems with the meter readings on their computer system which is an ongoing problem. The Town had to replace new meters they purchased because of problems they had with those meters. The second set of meters are having problems with readings as well. The customers that are not getting a bill got left off because the meters reading report did not indicate these customers were not set up with an account. The Town does not have procedures to check for low or no meter readings.
Effect - Because the Town is not charging these locations for utility services they are losing revenue. Also, the Town may be in violation of Art. VII, Sec. 14, ofthe state constimtion which prohibits the donation of public fimds, and requires public agencies to make reasonable attempts to collect the amounts they are owed.
Recommendation - We reconunend the Town develop some procedures that would find locations that are getting services that are unbilled and to review low or no meter readings. We also recommend the Town review their connection and termination procedures associated with this problem.
Management's Response - As of December 2013, the Town is printing a report that compares meter readings to billed readings. The report should show locations that have usage but no account. The Town's director of utilities will monitor locations that do not have monthly meter readings. The director will review the Town's termination and connection procedures to insure that these have been followed.
-79- TOWN OF FARMERVILLE FARMERVILLE. LOUISIANA SCHEDULE OF FINDINGS AND OUESTIONED COSTS FOR THE YEAR ENDED JUNE 30. 2013
Name of contact Person:
Mike Allen, Utility Supervisor
Date to Complete:
June 30,2014
13-06 Recreation Center Bus Drop Off of School Age Children: Internal Control (from 2012)
Criteria - The Recreation Center allows some ofthe private elementary schools to use the Center as a place to drop off children after school. The Center takes care ofthe children until they are picked up by an adult at no charge. The Town does not have a legal release signed by the parents ofthe children.
Cause - The Center has allowed the private school buses to drop children off after school for a number of years. The Center has never kept up with the number of children being dropped off at the Center. Unlike other drop off locations, use ofthe Center is not fi^e of charge and not open to the general public such as a public library.
Effect - By allowing the school buses to drop children off at the Center, the Town may be legally responsible for the care and well being ofthe children. There may also be a problem with allowing the children to use the facility while charging others.
Recommendation - The Town supervisors and the Town's attomey need to prepare a liability release form for all parents or legal guardians to sign for any child dropped off at the Recreation Center. The Town also needs to develop procedures to follow for children that are not picked up in a timely manner and to make sure that part of these procedures include monitoring these transactions for changes for a new school year and new children.
Management's Response - The Town will have the parents sign the release forms and retum the forms to the Town's business office. The Town will also develop procedures for the Center for children that are not picked up timely by the parents, and have procedures in place to add or drop children from the school buses. The procedures will include a renewal at the beginning of each school year.
Name of contact Person:
M. Stein Baughman, Mayor
Date to Complete:
June 30, 2014
-80- TOWN OF FARMERVILLE LOUISIANA LEGISLATIVE AUDITOR'S REPORT ON INTERNAL CONTROL DEFICIENCIES AND COMPLIANCE ISSUES FROM LETTER DATED ON MARCH 27. 2013 FOR THE YEAR ENDED JUNE 30. 2013
The following is a list ofthe deficiencies listed in the original letter dated March 27,2013 and to what extent the Town of Farmerville has resolved the issues.
Lack of comprehensive policies and procedures to guide all business/financial operations- The Town now has a policy and procedure manual that has been approved by management. The Town plans to update the manual as necessary in the fiiture.
Controls need to be strengthened to ensure tkat sewer and garbage services are terminated for delinquent paying customers in Water District HI- (see finding 13-02) The Town had their attomey draw up an agreement with the water district at year end. The attorney contacted the water district's anomey and the president. All indications are that the district will sign the agreement however; the Town has no signed agreement as ofthe date of this report. The contract with the district would give the Town the right to terminate water services to the customer for non-payment of sewer and garbage services to the Town. The district will also provide the Town with the meter readings for those customers that receive sewer services. The contract gives the water district a preferred water rate for bulk water sold to the district.
Lack of controls over credit cards- From our review ofthe credit card charges, the problems with lack of controls did not reoccurs in the period we reviewed. From our inquiries with the Town's personal, they indicated that the suggested corrections were made.
Lack of controls over traffic tickets- (see finding 13-03) At year end they did not have procedures to account for the ticket numbers. In October 2013, the Town started maintaining one ofthe ticket copies in numeric order. As part ofthe accountant's review procedures, she is to verify that all outstanding tickets have been processed in the system. The system in the business office will not allow voided tickets to be entered and all copies of juvenile tickets are sent to the district court. However, the Police Department keeps up with the ticket number for the juvenile offenders; the voided tickets are sent to the business office for their files.
Failure to perform quarterly audits of traffic citations as required by Louisiana Revised Statute 32:398.3(8)- In June the Town hired an accountant to do periodic reviews ofthe ticket system. The accountant was hired in June 2013. She does have quarterly reviews ofthe traffic citations for the June 2013 and the September 2013 quarters.
Lack of controls over collections at the Recreation Center- (see finding 13-01) The Town's business office now controls the distribution ofthe receipt books ofthe Center and has developed forms for the Center to give to the business office detailing the activities ofthe Center that would result in additional revenue. The Center is still not turning in collections to the business office on a daily basis. The Center has two receipts books out at times; one is kept at the Center's office and the other receipt book is a field book that is used to collect payments for special activities such as football leagues. We reviewed the collection of both types of receipt books. Neither type of receipt was tumed in daily.
The Town's accountant is doing quarterly reviews ofthe receipts ofthe Center. Her last review was finishedo n October 2013. The mayor indicated that the Town would have all the conections in place by Febmary 2014.
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