C IT Y O F B O G A LU SA , LO U IS IA N A
G eneral-P urpose Financial Statem ents Independent A uditor's R eports, and S upplem ental Inform ation
Year Ended D ecem ber 3 1, 2000
RIC HA RD M , SEA L C ERTIFIED PU BLIC A C C O U N TA N T o C ERTIFIED G O V ERN M EN T FIN A N C IA L M A N A G ER C ITY O F BO GA LUSA , LO UISIANA
TA BLE O F C O NTENTS Decem ber 31. 2000
DIT REPO RTS R EQ UIRED BY G O V ERNM ENT A U D ITING STA N DA R D
ndependent A uditor's Report on the G eneral-Purpose Financial Statem ents 2-3
G eneral-Purpose Financial Statem ents: Com bined Balance Sheet - All Fund Types, Account G roups, and D iscretely Presented Com ponent U nits 5-6 Com bined Statem ent of Revenues, Expenditures, and C hanges in Fund Balances - A ll G overnm ental Fund Types and D iscretely Presented C om ponent U nits 7-8 Com bined Statem ent of Revenues, Expenditures, and Changes in Fund Balances - Budget (GAAP Basis) and Actual - G eneral, Special Revenue, and Capital Project Fund Types 9-11 C om bined Statem ent of Revenues and Expenses -
Enterprise Fund ~ 12 Com bined Statem ent of Changes in Retained Earnings
and Contributed Capital- Enterprise Fund . 13 Com bined Statem ent of Cash Flow s 14 Com bined Statem ent of Changes in Plan Net Assets -
Fiduciary Funds . . 15 Notes to the G eneral-Purpose Financial Statem ents 16-49
ndependent A uditor's Report on C om pliance and on Internal C ontrol O ver Financial Reporting Based on an A udit of Financial Statem ents Perform ed in Accordance w ith G overnm ent A uditing Standards 50-51
SU PPLEM EN'fA L IN FO R M ATIO N
G eneral Fund:
Balance Sheet . . 54 Statem ent of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actua 55-62
(Continued) C ITY O F BO GA LUSA , LO UISIA NA
TA BLE O F CO NTENTS Decem ber 31. 2000
Page
Special Revenue Funds: C om bining Balance Sheet 64 Com bining Statem ent of Revenues, Expenditures, and C hanges in Fund Balances 65 Industrial C om plex Sales Tax: Statem ent of Revenues Expenditures, and C hanges in Fund Balance - Budget (GAAP Basis) and Actual. Em ployee Pay Raise Sales Tax: Statem ent of Revenues Expenditures, and C hanges in Fund Balance - Budget (GAAP Basis) and Actual. 67 Street Im provem ent Sales Tax: Statem ent of R evenues Expenditures, and C hanges ~n Fund Balance - Budget (GAAP Basis) and Actual. 68 Capital Im provem ent Sales Tax: Statem ent of Revenues Expenditures, and C hanges in Fund Balance - Budget (GAAP Basis) and Actual. 69 Industrial C om plex Rent/Lease: Statem ent of Revenues Expenditures, and C hanges in Fund Balance - Budget (GAAP Basis) and Actual. 70 Parks and R ecreation C om m ission: Statem ent of Revenues Expenditures, and C hanges in Fund Balance - Budget (GAAP Basis and Actual. A irport M aintenance and Im provem ent: Statem ent of Revenues Expenditures, and C hanges in Fund Balance - Budget (GAAP Basis and Actual. 72 Senior C itizens Program s: Statem ent of Revenues Expenditures, and C hanges In Fund Balance - Budget (GAAP Basis) and Actual. 73 Recreation and Parks: Statem ent of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual. 74 Landfill: Statem ent of Revenues, Expenditures, and C hanges in Fund Balance - Budget (GAAP Basis) and Actual. 75
(Continued) C ITY O F BO GALUSA , LO U ISIANA
TA BLE O F C O NTENTS Decem ber 31,2000
Paqe
Debt Service Fund: Balance Sheet 77 Statem ent of Revenues, Expenditures, and C hanges in Fund Balances 78
Capital Projects Funds: Com bining Balance Sheet 80 C om bining Statem ent of Revenues, Expenditures, and C hanges in Fund Balances 81 Landfill Im provem ent: Statem ent of R evenues, Expenditures, and C hanges in Fund Balance - Budget (GAAP Basis) and Actual. 82 A irport Expansion: Statem ent of Revenues, Expenditures, and C hanges in Fund Balance - Budget (GAAP Basis) and Actual. 83
Enterprise Fund/Utility Funds:
C om bining Balance Sheet . . 85 C om bining Statem ent of Revenues and Expenses 86-87
Fiduciary Funds: Statem ent of Plan N et A ssets 89 Statem ent of Changes in Plan Net Assets 90
A UD IT REPO RTS REQ UIRED BY THE SING LE A UDIT A CT
ndependent A uditor's R eport on C om pliance w ith Requirem ents Applicable to Each Major Program and Internal Control Over C om pliance in A ccordance w ith O M B C ircular A -133 92-93
Schedule of Expenditures of Federal Aw ards 94-96
Notes to the Schedule of Expenditures of Federal Aw ards . . 97
Schedule of Findings 98-99
Schedule of Prior-Year Findings 100-101
(Concluded)
Page 1
A U D IT R E P O R TS R E Q U IR E D B Y G O VER N M EN T A UD ITIN G S TA N DA R D S Page 2 RIC HA RD M . SEA L
C ERTIFIED P U BLIC A C C O U N TA N T o C ERTIFIED G O V ER N M EN T FIN A N C IA L M A N A G ER
N DEPENDENT A U DITO R'S R EPO RT O N THE G ENERAL-PURPO SE FINANCIAL S TATEM ENTS
The Honorable J. M . "M ack" M cG ehee, M ayor and the M em bers of the C ity C ouncil C ity of Bogalusa, Louisiana
I have audited the accom panying general-purpose financial statem ents of the C ity of Bogalusa, Louisiana, as of and for the year ended Decem ber 31, 2000, as listed in the table of contents. These general-purpose financial statem ents are the responsibility of the C ity of Bogalusa, Louisiana's m anagem ent. M y responsibility is to express an opinion on these general-purpose financial statem ents based on m y audit.
I conducted m y audit in accordance w ith generally accepted auditing standards and the standards applicable to financial audits contained in G overnm ent A udithTg
Standards, issued by the Com ptroller G eneral of the U nited States. Those standards require that I plan and perform the audit to obtain reasonable assurance
about w hether the financial statem ents are free of m aterial m isstatem ent. A n audit includes exam ining on a test basis, evidence supporting the am ounts and disclosures in the financial statem ents. A n audit also includes assessing the accounting principles used and significant estim ates m ade by m anagem ent, as well
as evaluating the overall financial statem ent presentation. I believe that m y audit provides a reasonable basis for m y opinion.
In m y opinion, the general-purpose financial statem ents referred to above present
fairly, in all m aterial respects, the financial position of the C ity of Bogalusa, Louisiana, as of Decem ber 31,2000, and the results of its operations and the cash flow s of its proprietary fund types and nonexpendable trust funds for the year then
ended in conform ity w ith generally accepted accounting principles.
PO SI O FFIC E BO X 128 o BO G ALUSA, LO UISIANA 70429-0]28 o (504) 732-2536 o FAX (504) 732-2537 Page 3
In accordance w ith G overnm ent A uditing Standards, I have also issued m y report dated June 27, 2001 on m y consideration of the City of Bogalusa, Louisiana's internal control over financial reporting and m y tests of com pliance w ith certain provisions of law s, regulations, contracts, and grants.
M y audit w as perform ed for the purpose of form ing an opinion on the general- purpose financial statem ents of C ity of Bogalusa, Louisiana, taken as a w hole. The com bining and individual fund statem ents listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financials statem ents of the C ity of Bogalusa, Louisiana . The accom panying schedule of expenditures of federal aw ards is presented for purposes of additional analysis as required by U. S. O ffice of M anagem ent and Budget Circular A-133, Audits of States, Local G overnm ents, and N on-Profit Organizations, and is also not a required part of the general-purpose financial statem ents of the C ity of Bogalusa, Louisiana. Such inform ation has been subjected to the auditing procedures applied in the audit of the general-purpose financial statem ents and, in m y opinion, is fairly stated, in all m aterial respects, in relation to the general-purpose financial statem ents taken as a w hole.
Certified Public A ccountant
Bogalusa, Louisiana June 27. 2001 Page 4
G EN E R A L-P U R P O SE FIN A N C IA L S TA TE M E N TS Page 5
Page 6
~ o ~ o ~ o ~
_ E o e-.o
B -
L~E ~ co L
o-', . .t:_ ~6
o
o
~ E
~ o o o n t0 ~ Page 7
U3 I~- eO
1t, O100 1",,-104
o r,-- ~l Ob ~O Page 8
~0 0 ~ ~, Page 9
o'~ (o
~ co Lt~ i-- c,~ i ~ o Lo c~ u-) , Page 10
o0- ~:~ ~o ,43
o
r-. o~ r.- o o 1,-- Page 11
C ITY O F BO G ALUSA , LO U ISIA NA
CO M BINED STATEM ENT O F R EV ENUES, EXPENDITUR ES A ND C HANG ES IN FUND BALANCES - BUDG ET (GAAP BASIS) AND ACTUAL - GENERAL, SPEC IA L REVENUE, A ND CA PITA L PRO JECT FUN D TYPES Year Ended Decem ber 31. 2000
C apital Proiects Fund Type Variance- Favorable
Budget ~ Actual (Unfavorable)
Revenues: Taxes Intergovernm enta M iscellaneous Total revenues
Expenditures: C urrent - G eneral governm ent C apital outlay 317.640 814.186 (496,546) Debt service
Total expenditures 317,640 _ _ 814,186 _ (496,546) Excess (deficiency) of revenue over expenditures (24,000) 1,664 25,664
Fund balances, beginning 65.13..0 65,135 _ _ 5
Fund balances (deficit), ending ~_ 41~130 _$ 6~ 799 ~ 2. 5~.6.69
(Concluded)
The accom panying notes are an integral part of this statem ent Page 12
C ITY O F BO G A LUSA . LO U IS IA NA
CO M BINED STATEM ENT O F REVENUES AND EXPENSES- ENTER PR ISE FU N D For the Year Ended Decem ber 31. 2000
O PERATING R EV EN U E: User fees $ 2,229,500
O ther operating incom e _ _ _ 39~83
Total operating incom e _ 2,269,3383
O PERATING EXPENSES: Salaries and w ages 527,848 Utilities 391,099 Contractual services 560,680 Supplies and m aterials 116,208 Insurance 68,087 W ater collection 15,626 Repairs 42,696 G as and oil 5,372 Depreciation 517,630 Pension contributions 49,318 O ther 969 Total operating expenses 2~295,533
OPERATING INCOM E (LOSS) _ ~26,150)
NONOPERATING REVENUE (EXPENSE) Ad valorem taxes 112,789 Sales tax 745,667 Interest incom e 57,725 Interest expense (210,205) A gent fees (30,829) Sales tax collection expense _ _ _ (1&480)
Total nonoperating income (expense) _ 6#4~667
N ET INCO M E BEFO R E TRA NSFERS 638,517
OPERATING TRANSFERS (O UT) .J[!,Q27,536)
DEC REASE IN R ETA IN ED EARNING S .~ 389., 019)
The accom panying notes are an integral part of this statem ent Page 13
C ITY O F BO G A LU SA . LO U ISIA NA
C O M BIN ED STATEM ENT O F C HA NG ES IN R ETA IN ED EA R N ING S A ND CO NTR IBUTED CA PITAL-ENTERPRISE FUND For the Year Ended Decem ber 31. 2000
Total Retained C ontributed (Memorandum
Earninqs Capital Only)_ . .
BEGINNING BALANCE $ 6,927,634 $ 7,697,121 $ 14,624,755 Prior Period Adjustment _ (4,657,284) ~ 4,657,284 BEGINNING BALANCE(RESTATED) 2,270,350 12,354,405 14,624,755 Net income (loss) (389,019) (389,019)
Federal governm ent 79,212 79,212
Depreciation on
contributed capital _ 439,203_ (439~22003)
EN DING BA LANC E $ 2,320 =534 . _ .1.4~314,948 ~_ !_!~994,414
The accom panying notes are an integral part of this statem ent Page 14
C ITY O F BO GA LUSA . LO UISIA NA
CO M BINED STATEM ENT O F CASH FLO W S- ENTER PR ISE FU N D For the Year Ended Decem ber 31. 2000
CASH FLO W S FRO M O PERATIO NS: Operating income (loss) $ (26,150 Adjustments to reconcile operating income to net cash provided by operating activities Depreciation 517,630 (Increase) decrease in: Accounts receivable 576,494 D ue from other funds 24,839 Increase (decrease)in: Accounts payable (419,578) Com pensated absences payable 6,612 Retainage payable (335,478) Due to other funds 172,534 Accrued inlerest payable 19,686 Net cash flow provided by operating activities 536~589
CASH FLO W S FRO M NO NCA PITA L FINA NC ING ACTIV ITIES Ad valorem taxes 112,789 Sales tax 745,667 Sales tax collection expense (10,480) Operating transfers in(out) (1,o2~536) Net cash provided by noncapital financing activities (179,56o) CASH FLOW S FRO M CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets (1,821,355) Contributed capital (79,212) Bond principal paym ents (195,000) Interest expense (210,205) Agent fees (30,829)
Bond Proceeds _ _ 2,206,166 Net cash used by capital and related financing activities (136,435) CASH FLO W S FRO M INVESTING AC TIV ITIES: Interest earned 5Z,72~ Net cash provided by investing activities 57,725
N ET INC REASE IN CASH AND CASH EQ U IVA LENTS 284,319
Cash and cash equivalents at beginning of year 1.111,089 CASH AND CASH EQ UIVALENT AT END O F YEAR ~_1~395 ,388
The City of Bogalusa paid interest during the year of $190,519
The accom panying notes are an integral part of this statem ent Page 15
C ITY O F BO G A LUSA . LO UISIA NA
C O M BIN ED STATEM ENT O F C HA NG ES IN PLA N N ET A SSETS- FIDUC IA RY FUNDS For the Year Ended Decem ber 31. 2000
A D D ITIO NS : C ontributions: Court fines Beer and liquor license City of Bogalusa Plan m em bers Total contributions 317,538
nvestm ent incom e: Net appreciation in fair value of investm ent 28,022 Interest 41~ 353 Net investm ent incom e 447.375
Total additions 764,913
DEDUCTIO NS: Benefits 619,779 Refunds of contributions 14,760 A dm inistrative expense 15,435 U ncollected ad valorem taxes 5,007 Paym ents to state retirem ent system 490,736 Transfer to C ity of Bogalusa retirem ent accounts 25,944 Drop w ithdraw als !.200 Total deductions
NET INCREASE (DECREASE) (413,948)
Fund balance reserved for em ployers' pension benefits
Beginning of year 8.375.141
EN D O F Y EA R $ 7,961,19_3
The accom panying notes are an integral part of this statem ent Page 16
CITY O F B O G ALU SA, LO UISIANA
N otes to the G eneral-Purpose Financial Statem ents As of and for the Year Ended Decem ber 31. 2000
NTRO DUCTIO N
The City of Bogalusa, Louisiana (the City) was incorporated July 4, 1914, and is governed by the provisions of a hom e rule charter adopted O ctober 22, 1977. The city operates under a "m ayor-council" form of governm ent w hich consists of an elected council representing the legislative branch of the governm ent and an elected m ayor heading the executive branch. t. SUM M A RY O F SIG NIFICA NT ACC O UNTING PO LIC IES
A . Reporting Entity
The C ity of Bogalusa C ity C ouncil is the governing authority for the C ity of Bogalusa. As the governing authority of the C ity, for reporting purposes, the C ity of Bogalusa City G overnm ent is the financial reporting entity for the C ity of Bogalusa. The financial reporting entity consists of the prim ary government (City governm ent), organizations for which nature and significance of their relationship w ith the prim ary governm ent are such that exclusion w ould cause the reporting entity's financial statem ents to be m isleading or incom plete.
Governm ental Accounting Standards Board (GASB) Statement No. 14 established criteria for determ ining w hich com ponent units should be considered part of the C ity of Bogalusa C ity G overnm ent for financial reporting purposes. The basic criterion for including a potential com ponent unit w ithin the reporting entity is financial accountability. This criteria includes:
1. Appointing a voting majority of an organization's governing body, and
a. The ability of the C ity governm ent to im pose its w ill on that organization and/or
b. The potential for the organization to provide specific financial benefits to or im pose specific financial burdens on the C ity governm ent.
2. O rganizations for w hich the C ity governm ent does not appoint a voting majority but which are fiscally dependent on the City governm ent. C ITY O F BO GA LUSA Page 17 BO G A LU SA , LO U IS IA NA Notes to the General-Purpose Financial Statements (continued) 3. O rganizations for w hich the reporting entity financial statem ents w ould be m isleading if data of the organization is not included because of the nature or significance of the relationship.
A s required by generally accepted accounting principles, these financial statem ents present the City of Bogalusa (the primary government) and its com ponent units. The com ponent units discussed below are included in the C ity's reporting entity because of the significance of their operational or financial relationship w ith the C ity.
B lended C om ponent U nits
Bogalusa Parks and Recreation Com m ission (the Com m ission) - The Bogalusa Parks and Recreation Com m ission is governed by a seventeen-m em ber board appointed by the M ayor w ith the approval of the Council. The Com m ission was established by O rdinance No. 824 dated M arch 6, 1973. A lthough it is legally separate from the C ity, the C om m ission is reported as if it w ere part of the prim ary governm ent because the C ity m aintains the accounting records, and the financial statem ents of the C om m ission are not m aterial to the financial statem ents of the C ity.
C ity Em ployee's Retirem ent System , Firem en's Pension and Relief Fund, Policem en's Pension and Relief Fund (the Pension Plans) - The Pension Plans are legally separate organizations, but are fiscally dependent upon the C ity. They m eet the definition of a com ponent unit, but are not reported as com ponent units because there is an exception to the rule for fiduciary pension plans. Therefore, the pension p~ans are blended into the general-purpose financial statem ents in the Fiduciary Fund Type colum n.
D iscretely Presented C om ponent U nits
City Court of Bogalusa (the Court) - The City Court of Bogalusa is a court of lim ited jurisdiction and serves W ard 4 of W ashington Parish, Louisiana. A lthough the C ity Court Judge is an independently elected official, the Court is considered a com ponent unit of the C ity because of fiscal dependence. The C ity provides the courtroom and office space for the C ourt. The C ity also pays salaries and retirem ent for the Court's secretaries. C ITY O F BO GALUSA Page 18 BO GALUSA , LO UISIANA Notes to the General-Purpose Financial Statements (continued) Constable of City Court of Bogalusa (the Constable) - The office of C onstable of C ity C ourt of Bogalusa w as created by special legislative act R.S. 13:1952(5). The Constable is an elected official, and is responsible for executing the orders and m andates of the C ity C ourt of Bogalusa. The Constable is also fiscally dependent on the City and considered a com ponent unit.
Christm as in the Park Com m ission (the Com m ission) - The C om m ission w as created on Novem ber 1, 1995 by O rdinance No. 1588. The Com m ission is governed by an 11 m em ber board appointed by the M ayor, w ith approval of the C ity C ouncil. The C om m ission advises the M ayor and the C ity Council, stim ulates public interest and accepts donations to enhance holiday lighting and activities.
Bogalusa Com m unity Arena Com m ission (the Com m ission) - The Bogalusa C om m unity A rena Com m ission is governed by an eleven- m em ber board appointed bythe M ayor w ith approval of the C ouncil. The Com m ission w as established by O rdinance No. 1607 dated June 21, 1995 and am ended on Decem ber 20, 1995 by O rdinance No. 1623. A lthough it is legally separate from the C ity, the C om m ission is reported as if it w ere part of the prim ary governm ent because the C ity m aintains the accounting records, and the financial statem ents of the Com m ission are not m ateria} to the financial statem ents of the City.
The follow ing present condensed financial statem ents for each of the four discretely presented com ponent units. Com plete financialstatem ents ofthe individual com ponent units can be obtained from their respective adm inistrative offices.
A dm inistrative O ffices
C ity Court of Bogalusa Constable of C ity Court of Bogalusa 202 A rkansas A venue 202 A rkansas A venue Bogalusa, LA 70427 Bogalusa, LA 70427
C hristm as in the Park C om m ission Bogalusa Com m unity Arena Com m ission c/o M r. Jerry Bailey c/o M r. Jerry Bailey D irector of A dm inistration D irector of A dm inistration Post O ffice Box 1179 Post O fice Box 1179 Bogalusa, LA 70429-1179 Bogalusa, LA 70429-1179 C ITY O F BO G A LUSA Page 19 BO GA LUSA , LO U ISIANA Notes to the General-Purpose Financial Statements (continued) C om bining Balance Sheet - C om ponent Units
Bogalusa City Constable Christm as in Com m unity Court of City Court the Park Arena of Bo galusa Com m ission Com m ission Totals Assets: Cash $ 66,324 $ 19"831 $ 26,971 $ 1,883 $ 134,009 16,785 16,785 Investm ents 9.643 Due from other funds 9,643 28,689 24 809 53 498 Fixed assets 213,935 Total assets ~140,44!
Liabilities: $ 65,526 $ $ 10,842 $ $ 76,368 Other payables 9L64 3 Due to other funds _ 9,643 86.011 Total liabilities 75 ~16g I0"842
Equity: Investm ent in genera 53,498 fixed assets 28,689 24,809 1,883 _ _ 5 4,426 Fund balance 36,583 19,831 _ ~ ~ 129 1,8 83 127,924 Total equity 65,272 44 640 _ _ 16~_129_
Total liabilities and fund equity ~140441 .~_ 44~6~4_0= ~. 26~9=7.~i $ 1,8 83 ~. =213~935 C ITY O F BO G ALUSA Page 20 BO GA LUSA . LO UISIANA Notes to the General-Purpose Financial Statem ents (continued) C om bining Statem ent of Revenues, Expenditures, and C hanges in Fund Equity - C om ponent U nits
Bogalusa C ity Constable Christm as in Com m unity Court of City Court the Park Arena
_B.ogalusa of Bo~lalusa Com m ission Com m ission .Totals Revenues: Donations $ $ $ 22,593 $ 25 $ 22,618 Court costs and fees 60.880 14,265 75,145 Ticket sales 13,174 13,174 Intergovernm ental 48,093 2,333 50,426 Interest 4,202 862 5,064 O ther 101 ~ 250 3,35!
Total revenues 13.276 _ _ 1& 5_98 36.629 3,275 169.778
Expenditures: C urrent: G eneral governm ent 183.982 21.592 205,574 31172 C ulture and recreation .~6~ _ 5~ 657
Total expenditures 183.982 _ _ 21 592 56.485 3,172 _ 265,23! Excess(deficiency) of revenues over
expenditures _ JT_0J 06) (4,994) _1!9~8.56) 103 L95~453) O ther financing sources(uses): O perating transfers in(out) 6,272 90.653 Total other financing sources(uses) 74.381 6,272 10.000 90.653 Excess(deficiency) of revenues and other financing sources over expenditures
and other uses 3,675 1,278 ~ ~ 9~85_6) 103
Fund balances, beginning _ _ 3.2~90_8 18.553 2& 985 1,780 79.226 Fund balances, ending ~__36~583 $ 19,831 ~ 1~ 9 $ 1L88_3 ~ ~74 426
Prim ary governm ent officials m ay appoint som e, or all, governing board m em bers of organizations that are not included as com ponent units in the prim ary governm ent's reporting entity. These organizations are classified as (a) related organizations and (b) joint ventures, as follows: C ITY O F BO GA LUSA Page 21 BO G A LU SA , LO U ISIA NA Notes to the General-Purpose Financial Statements (continued)
R elated O rganizations
Housing A uthority of B ogalusa - The M ayor, w ith confirm ation of the C ity C ouncil, appoints all five C om m issioners of the Housing A uthority of Bogalusa. How ever, no further contact or influence exists. Therefore, it is not included in the C ity's financial statem ents.
W ashington Industrial Developm ent Foundation, Inc. - The M ayor appoints one m em ber and the City Council appoints two m em bers of the thirty m em ber Board of Directors of W ashington Industrial Developm ent Foundation, Inc., w hich is a non-profit corporation exem pt from federal income tax under Internal Revenue Code Section 501(c)(3). However, no further contact or influence exists. Therefore, it is not included in the C ity's financial statem ents.
Joint V entures
Choctaw Road Landfill (the Joint Venture) - The City is a participant with the W ashington Parish Police Jury (the Police Jury) in a joint venture to construct and operate the Choctaw Road Landfill, a solid w aste disposal landfill. The Joint Venture w as opened in July of 1989. The agreed upon percentages for sharing of construction costs and operating losses w ere 58.1% for the Police Jury and 41.9% for the C ity. The Police Jury's share of costs has been funded by a dedicated one percent sales tax in W ashington Parish, excluding W ard 4. The C ity's share of costs has been funded by an ad valorem tax and the issuance of general obligation bonds. A lthough there w ere no equity balances at Decem ber 31, 2000, the Joint Venture is apparently not experiencing any financial stress. C om plete financial statem ents for the Joint Venture can be obtained from the W ashington Parish Police Jury at the parish courthouse in Franklinton. LA .
W ashington Parish Drug Task Force (the Task Force) - The City, together w ith the W ashington Parish Sheriff, com prise the W ashington Parish D rug Task Force, w hich w as created to com bat drug problem s in their joint jurisdictions. The operations of the Task Force are funded by federal grants from the United States Departm ent of Justice through the Louisiana C om m ission on Law Enforcem ent and Adm inistration of C rim inal Justice, together w ith contributions from the tw o law enforce- m ent agencies. Financial activities of the Task Force are included in the W ashington Parish Sheriff's general-purpose financial statem ents. C ITY O F BO GA LUSA Page 22 BO G ALUSA , LO U ISIANA Notes to the General-Purpose Financial Statements (continued)
B . Fund A eeoun~ng
The C ity uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to dem onstrate legal com pliance and to aid financial m anagem ent by segregating transactions relating to certain governm ent functions or activities.
A fund is a separate accounting entity w ith a self-balancing set of accounts. O n the other hand, an account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available resources.
The fund categories, fund types and account groups presented in the financial statem ents are described as follow s:
G overnm ental Funds
G overnm ental funds are used to account for all or m ost of the m unicipality's general activities, including the collection and disbursem ent of specific or legally restricted m onies, the acquisition or construction of general fixed assets, and the servicing of general long- term obligations. G overnm ental funds include:
G eneral Fund - the general operating fund of the city and accounts for a)l financial resources, except those required to be accounted for in other funds,
2 S pecial Revenue Funds - account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.
Debt Service Funds - account for transactions relating to resources retained and used for the paym ent of principal and interest on those long-term obligations recorded in the general long-term obligations group.
4 Capital Projects Funds -account for financial resources received and used for the acquisition, construction or im provem ent of capital facilities not reported in the other governm ental funds. C ITY O F BO GA LUSA Page 23 BO G ALUSA , LO UISIANA Notes to the General-Purpose Financial Statements (continued)
Proprietary Funds
Proprietary funds are used to account for the activities sim ilar to those found in the private sector, w here the determ ination of net incom e is necessary or useful to sound financial adm inistration. Proprietary funds differ from governm ental funds in that their focus is on incom e m easurem ent, w hich, together w ith the m aintenance of equity, is an im portant financial indicator. Proprietary funds include:
Enterprise Funds - Account for operations (a) where the intent of the governing 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 prim arily through user charges; or (b) where the governing body has decided that periodic determ ination of revenues earned, expenses incurred, and/or net incom e is appropriate for capital m aintenance, public policy, m anagem ent control, accountability, or other purposes.
Fiduciary Funds
Fiduciary funds are used to account for assets held on behalf of outside parties, including other governm ents, or on behalf of other funds w ithin the city.
A ccount G roups
G eneral Fixed A ssets A ccount G roup - This account group is established to account for the fixed assets of the City governm ent and its com ponent units, except those accounted for in the Proprietary Funds.
Public dom ain or infrastructures are not capitalized. No depreciation has been provided on the G eneral Fixed Assets Account G roup. All fixed assets are valued at historical cost w here available. Historical cost w as net available for a m inor am ount of fixed assets thus estim ated historical cost w as used.
2. G eneral Long-Term D ebt A ccount G roup - This account group is established to account for all long-term obligations of the C ity governm ent, except those accounted for in the Proprietary Funds. C ITY O F BO G A LUSA Page 24 BQGALUSA, LOUISIANA Notes to the General-Purpose Financial Statem ents (continued) C . B asis of A ccounting
1. G overnm ental Funds
[he accounting and financial reporting treatm ent applied to a fund is determ ined by its m easurem ent focus All governm ental funds are accounted for using a current financial resources m easurem ent focus. W ith this m easurem ent focus, only current assets and current liabilities are generally included on the balance sheet. O perating statem ents of these funds present increases and decreases in net current assets. The m odified accrual basis of accounting is used by all governm ental funds. "[he governm ental funds use the follow ing practices in recording revenues and expenditures:
R evenues
Revenues are recognized w hen they becom e m easurable and available to finance expenditures of the current fiscal year. Sales taxes are recognized as revenue in the m onth in w hich sales taxes are paid by taxpayers. Ad valorem taxes are recognized as revenue in the year the taxes are assessed and available for use on current debt. Ad valorem taxes are assessed on a calendar year basis, becom e due on Novem ber 15 of each year and becom e delinquent on Decem ber 31. The taxes are generally collected in Decem ber of the current year and January through February of the ensuing year.
Federal and state aid and grants are recorded w hen the entity is entitled to the funds.
Substantially all other revenues are recorded w hen received
Expenditures
Expenditures are generally recognized under the m odified accrual
basis of accounting w hen the related fund liability is incurred . Exceptions to this general rule are (1) principal and interest on general long-term debt is recognized when due and (2) accum ulated sick pay, and other em ployee benefits w hich are not accrued.
Other Financing Sources (Uses)
Transfers between funds that are not expected to be repaid (and any other financing source/use) are accounted for as other financing sources (uses). C ITY O F BO G ALUSA Page 25 BO GA LUSA , LO U ISIANA Notes to the General-Purpose Financial Statements (continued) 2. Proprietary Funds and Pension Trust Funds
The Proprietary Fund and Pension Trust Funds are accounted for on a flow of econom ic resources m easurem ent focus and a determ ination of net incom e and capital m aintenance. W ith this m easurem ent focus, all assets and all liabilities associated w ith the operation of these funds are included on the balance sheet. The Proprietary Fund and Pension Trust Funds use the accrual basis of accounting. Revenues are recognized w hen earned and expenses are recognized at the tim e liabilities are incurred.
D . B udgets
The City follow s these procedures in establishing the budgetary data reflected in these financial statem ents:
1. The M ayor subm its to the council a proposed operating budget at least forty-five days prior to the beginning of each fiscal year. The operating budget includes proposed expenditures and total anticipated revenues.
2. At the m eeting of the council at w hich the operating budget is subm itted the council orders a public hearing on it.
3. A t least ten days prior to the date of such hearing the council publishes in the official journal a general summ ary of the proposed budget.
4. After the holding of the public hearing and com pletion of all action necessary to finalize and im plem ent the budget, the budget is legally enacted through passage of an ordinance, no later than the twenty- seventh day of the last m onth of the calender year.
5. Budgetary am endm ents involving the transfer of funds from one departm ent, office, or agency to another or involving increases in expenditures resulting from revenues exceeding am ounts estim ated require the adoption of an ordinance by the Council.
6. Every appropriation, except an appropriation for a capital expenditure, lapses at the close of the fiscal year to the extent that it has not been expended or encum bered.
7. Budgets for the General, Special Revenue, and Capital Project Funds are adopted on a basis consistent w ith generally accepted accounting principles (GAAP). Budgeted amounts are as originally adopted or as am ended from tim e to tim e by the C ity C ouncil. C ITY O F BO G A LUSA Page 26 BO GA LUSA , LO U ISIA NA Notes to the General-Purpose Financial Statements (continued)
E. C ash and C ash Equivalents and Investm ents
C ash includes am ounts in dem and deposits and interest-bearing dem and deposits accounts. Cash equivalents include am ounts in tim e deposits and those investm ents w ith original m aturities of 90 days or less. Under state law , the C ity m ay deposit funds in dem and deposits, interest-bearing dem and deposits, m oney m arket accounts, or tim e deposits w ith state banks organized under Louisiana law and national banks having their principal offices in Louisiana.
Under state law , the C ity m ay invest in United States bonds, treasury notes or certificates, These are classified as investm ents. In addition, local governm ents in Louisiana are authorized to invest in the Louisiana A sset M anagem ent Pool, Inc. (LAM P), a nonprofit corporation form ed by the State Treasurer and organized under the law s of the State of Louisiana, w hich operates a local governm ent investm ent pool. Investm ents are stated at cost; investm ents in pension plans are stated at fair m arket value.
F. Short-Term Interfund Receivables/Payables
During the course of operations, num erous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as due from other funds on the balance sheet. Short-term interfund loans are classified as interfund receivables or payables.
G . Inventory of Supplies
nventories are stated at cost, using the first-in, first-out m ethod
H . Bad Debts
The C ity of Bogalusa governm ent uses the direct w rite-off m ethod to w rite off the m ajority of general uncollectible accounts receivable. -[his method approxim ates m ethods in accordance w ith generally accepted accounting principles.
For the utility fund the C ity of Bogalusa governm ent has established an allow ance for doubtful accounts for w rite-of of delinquent accounts. The C ity's allow ance is based on m anagem ent's best estim ate of uncollectibte am ounts. C ITY O F BO GA LUSA Page 27 BO GA LUSA , LO U ISIA NA Notes to the General-Purpose Financial Statements (continued)
Restricted A ssets
C ertain proceeds of enterprise fund revenue bonds, as w ell as certain resources set aside for bond repaym ent, are classified as restricted assets on the balance sheet because their use is lim ited by applicable bond covenants.
J. Fixed A ssets
Fixed assets of governm ental funds are recorded as expenditures at the tim e purchased or constructed, and the related assets are capitalized (reported) in the general fixed assets account group. Public dom ain or infrastructures are not capitalized. Interest costs incurred during construction are capitalized. No depreciation has been provided on general fixed assets. A ll fixed assets are valued at historical cost or estim ated cost if historical cost is not available.
Fixed assets used in the proprietary fund operations are included on the balance sheet of the fund, net of accum ulated depreciation. Depreciation of all exhaustible fixed assets used by proprietary fund operations is charged as an expense against operations. Depreciation is com puted using the straight-line m ethod over a range of 20 to 40 years.
K . Long-Term O bligations
Long-term obligations expected to be financed from governm ental funds are reported in the general long-term obligations account group. Expenditures for principal and interest paym ents for long-term obligations are recognized in the governm ental funds w hen due. Long-term obligations expected to be financed from proprietary fund operations are accounted for in those funds.
L. Fund Equity
C ontributed C apita
Equity in an enterprise fund that results from the contribution of assets by another fund w ithin the governm ental unit, or private donations as distinguished from the equity that results from retained earnings.
Retained Earnings
The accum ulated earnings of an enterprise fund that have been retained in the fund and are not reserved for any specific purpose. C ITY O F BO G A LU SA Page 28 BO G A LUSA , LO U ISIANA Notes to the General-Purpose Financial Statements (continued)
Reserves
Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use.
M . C om pensated A bsences
The cost of current leave privileges, com puted in accordance w ith G A SB Statem ent No. 16, is recognized as a current-year expenditure in the governm ental funds w hen leave is actually taken. The cost of leave privileges, in the governm ental funds, is recorded in the general long-term obligations account group. Leave privileges associated w ith em ployees of the proprietary funds are recorded as a fund liability and operating expense.
Substantially all em ployees of the City governm ent earn from 1 week to 6 w eeks of annual leave each year depending on length of service. Each year any unused annual leave m ay be accum ulated.
Substantially all em ployees of the C ity governm ent accrue two days of sick leave for each m onth of continuous em ploym ent. Sick leave m ay be accum ulated to a m axim um of 260 w orking days. U pon term ination an em ployee m ay sell back to the C ity one-half of unused sick leave up to a m axim um of 20 days.
N . U se of Estim ates
The C ity uses estim ates and assum ptions in preparing these financial statem ents in accordance w ith generally accepted accounting principles. Those estim ates and assum ptions affect the reported am ounts of assets and liabilities, and the reported revenues and expenditures. Actual results could vary from the estim ates that are used.
O . Total C olum ns on C om bined Statem ents - O verview
Total colum ns on com bined statem ents are captioned "M em orandum O nly" to indicated that they are presented only to facilitate financial analysis. D ata in these colum ns do not present financial position, results of operations, or changes in financial position in conform ity w ith generally accepted accounting principles. Neither is such data com parable to a consolidation. Interfund elim inations have not been m ade in the aggregation of this data. C ITY O F BO G A LUSA Page 29 BO GA LUSA , LO UISIA NA Notes to the General-Purpose Financial Statements (continued) 2. A D VALO REM TAXES
Ad valorem taxes attach as an enforceable lien on property as of January 1 of each year. faxes are levied by the City in Septem ber or O ctober and are actually billed to the taxpayer in Novem ber. Billed taxes becom e delinquent on January 1 of the follow ing year. Revenues from ad valorem taxes are budgeted in the year billed.
[he City bills and co]lects its ow n property taxes using the assessed values determ ined by the tax assessor of W ashington Parish. W hen the City receives the tax roll, a receivable is set up and revenue is recognized based on the assessed values.
For the year ended Decem ber 31, 2000, taxes of 49.83 m ills w ere levied on property with assessed valuation totaling $41,719,560 and were dedicated as follow s:
Exp.
Fund TyP_e_ PurDose M ills Date G eneral G eneral purpose 10.84 Indef G eneral M aintenance, equipm ent, operations, and salaries of m unicipal em ployees 2.71 2009 G enera Fire departm ent m aintenance 2.71 2007 G enera M aintenance and operation of m unicipal services 3.62 2007 G enera Retirem ent for police departm ent fire departm ent, and general city em ployees 7.79 2009 Special Revenue Parks and recreation facilities 2.00 2009 Special Revenue Senior citizens program s 2.00 2009 Debt Service Paying bonds and interest 10.45 Indef Enterprise Sew er and w ater w orks 2171 2007 Special Revenue Landfill 5.00 2001
Tota 49.83
Total taxes levied were $2,078,889. Taxes receivable at Decem ber 31, 2000 consisted of the follow ing:
Taxes receivable current re $ 637,994 Taxes receivable prior year 34,706 ~_67~ ,700 C ITY O F BO G A LUSA Page 30 BO GA LUSA , LO U ISIA NA Notes to the General-Purpose Financial Statements (continued) 3. SA LES A ND USE TAX
A t Decem ber 31,2000, the C ity of Bogalusa had a three percent sales and use tax. The W ashington Parish Sheriff is authorized to collect and rem it this tax to the City for a stipulated fee. The C ity's sales tax ordinances provide that the proceeds can be used for the follow ing:
Exp. F und Typ e PUrDose Percent D ate Special Revenue Street and drainage m aintenance 25 06/01/02 Special Revenue C apital im provem ents 15 06/01/02 Enterprise (W ater and sewer
sales tax fund) W ater and sewer m aintenance . 15 06/01/02
G eneral G eneral operations .45 06/01/02 S ubtotal 1.00
S pecial Revenue Industrial com plex m aintenance .25 02/01/23 Special R evenue Em ployee salaries and benefits .50 indefinite G eneral G eneral operations 1.00 indefinite Enterprise (Operating fund) W astewater system im provem ent 25 02/01/23
Tota = 3.00.
Pursuant to an election held on O ctober 7, 2000, the City began collecting a 1/3% sales tax effective January 1,2001, for im provem ents, m aintenance and operation of the Begalusa C ity Jail.
4. CASH A N D CA SH EQ UIVA LENTS A ND INVESTM ENTS
"[he following is a summ ary of cash and cash equivalents (book balances) at year end.
a. A ll cash and cash equivalents other than C ity Em ployees' Retirem ent System :
Petty cash $ 78O Dem and deposits 7 1~ 402
"[ota $ 7,17.2~182 C iTY O F BO G ALU SA Page 31 BO GA LUSA , LO UISIANA Notes to the General-Purpose Financial Statements (continued) These deposits are stated at cost, w hich approxim ates m arket. Under state law, these deposits (or the resulting bank balances) m ust be secured by federal deposit insurance or the pledge of securities ow ned by the fiscal agent bank. The m arket value of the pledged securities plus the federal deposit insurance m ust at all tim es equal the am ount on deposit w ith the fiscal agent. These securities are held in the nam e of the pledging fiscal agent bank in a holding or custodial bank that is m utually acceptable to both parties.
Deposits of the City governm ent are held by several financial institutions. At Decem ber 31, 2000, the City governm ent had $7,901,520, in deposits (bank balances) which were covered by FDIC insurance and pledged securities held by a second banking institution in joint custody of only $7,063,725. Therefore, bank deposits were undercollateralized by $578,660.
b. City Em ployees' Retirem ent System (6/30/00)
C ity em ployees' Retirem ent System had cash and cash equivalents (book balance) as follows:
C ash $ 147,054 Cash equivarents 135 949
Total _$~ _ _ 283,003
At June 30, 2000 the Retirem ent System had $285,629 in deposits (bank balances) which were secured by FDIC insurance.
c. D iscretely Presented C om ponent Units
At Decem ber 31, 2000, the discretely presented com ponent units had $161,606 in deposits (collected bank balances). These deposits are fully secured from risk by FD IC insurance.
5. INV ESTM EN TS
[he follow ing is a sum m ary of investm ents, at fair m arket value, at year end
a. All investm ents other than C ity Em ployees' Retirem ent System
Certificate of Deposit w ith m aturity of m ore
than 90 days ~_ 6,000 C ITY O F BO GA LUSA Page 32 BO G A LUSA , LO UISIA NA Notes to the General-Purpose Financial Statem ents (continued) At Decem ber 31, 2000, this investm ent w as fully secured by FD IC insurance.
b. City Em ployees' Retirement System (6/30/00)
C om m on stock $ 1,401,579 U .S. G overnm ent obligations 6.192.739
Tota
Investm ents of the C ity Em ployee's Retirem ent System are reported at fair m arket value. A t June 30, 2000, all of the retirem ent system 's investm ents were held by bank-adm inistered trust funds. (GASB Category 2)
c. D iscretely Presented C om ponent U nits
At Decem ber 31, 2000, the discretely presented com ponent units had $16,785 in investm ents which were secured from risk by federal deposit insurance.
6. R EC E IVA B LES
The follow ing is a sum m ary of receivables for Decem ber 31,2000
Special Debt Capital General Revenue Service Projects Proprietary Fiduciary
Fund .Funds Funds Funds. Funds Funds Total $ 373,648 $ 118,749 $ 143,753 $ $ 36,550 $ $ 672,700 241,908 191,814 66.707 500,429 196,582 196,582
21,062 579,002 85,674 685,738 6.818 100,096 106.914
167,191 167,191
_ 39,384 - 19,338 84,212 _ 142,934 Total $879,402 $533~2990! $ 143,753 $ 67~ 835~~1!22 $ 84,2~2 _$ 2~472,488 C ITY O F BO G ALUSA Page 33 BO GA LUSA , LO U ISIA NA Notes to the General-Purpose Financial Statem ents (continued)
7. G EN E RA L FIX E D A S S ETS
A sum m ary of changes in general fixed assets follow s
Balance Balance 12/31/99 Additions Deletions 12/31/00
Land $ 699,681 18,000 717,681 Buildings 10,506,749 47,316 (112,700) 10.441.365 Im provem ents other than buildings 11,001,617 219,430 11,221,047 Equipm ent 3.023.854 376.860 (12,805 3,387,909 Construction in progress 275 396 861,396 (26%746 870.046 "Iota[ general fixed assets ~ 2 0_7~2297 $ 1,523,00_2 ~_ (392,251) .$ 26~638,048
8. PRO PERTY, PLANT A ND EQ UIPM ENT
A sum m ary of proprietary fund type property, plant, and equipm ent at Decem ber 31. 2000 follow s:
C onstruction-in-Progress $ 12,345,392 W ater and Sewer System 8,820,147 Sew er T reatm ent Plant 2,661,378 W ater W ell 514,314 Collection System 2,744,249 Sew er Pum ping System 1,343,751 W ater Line 4,218,806 Equipm ent 242,139 32,890,176 Less accum ulated depreciation (12,61.6,691)
Total $ 20,27_3,4_85
9. RESTRICTED A SSETS
At Decem ber 31,2000 the C ity m aintained restricted cash accounts required by bond covenants of the $6,600,000 G eneral O bligation Sewer Bonds 1998, $1,730,000 Sewer Revenue Bonds 1998, $3,170,000 Sales Tax Sewer Bonds 1998 and $2,000,000 Sewer Revenue Bonds 1999 as follows: C ITY O F BO G A LUSA Page 34 BO GA LUSA , LO UISIA NA Notes to the General-Purpose Financial Statem ents (continued) Sew er C apital Additions and C ontingencies Fund Sew er Revenue Bond Sinking Fund Sew er Revenue Bond Reserve Fund W astew ater Im provem ent Fund Sew er Sales Tax Bond Sinking fund Sales Tax Bond Reserve Fund
Total Restricted A ssets $ 8=20,826
10. PEN SIO N PLA NS
a. C ity of B ogalusa Pension Plans
The C ity of Bogalusa adm inistered three defined benefit pension plans - City Em ployees Retirem ent System (CERS), Policem en's Pension and Relief Fund (PPRF), and Firemen's Pension and Relief Fund (FPRF).
1. Sum m ary_ 0f ~ignificant Accountinq Policies
Basis of A ccounting . The C ity's retirem ent system s' financial statem ents w ere prepared using the accrual basis of accounting. Plan m em ber contributions w ere recognized in the period in w hich the contributions w ere due. Em ployer contributions to each plan w ere recognized w hen due and the em ployer has m ade a form al com m itm ent to provide the contributions. Benefits and refunds w ere recognized w hen due and payable in accordance w ith the term s of each plan.
M ethod U sed to V alue Investm ents. Investm ents w ere reported at fair value. Short-term investm ents w ere reported at cost, w hich approxim ates fair value. Securities traded on a national exchange were valued at the last reported sales price at current exchange rates. Investm ents that do not have an established m arket w ere reported at estim ated fair value.
2. Plan Descriptions and C ontribution Inform ation
Follow ing is the m em bership of each plan at the date of the latest actuarial valuation: C ITY O F BO G A LUSA Page 35 BO G A LUSA , LO UISIA NA Notes to the General-Purpose Financial Statements (continued) C ER S PP R F FPR F
D ate of actuarial valuation 6/30/00 12/31/00 . 12/31/00 Retirees & beneficiaries receiving benefits 71 0 0 Term inated plan m em bers entitled to but not yet receiving benefits 2 0 A ctive plan m em bers 76 0
Tota 149 0
C ity Em ployees Retirem ent System
plan DescriAt~ n. CERS is a single-em ployer defined benefit pension plan that covers appointive oficers and perm anent em ployees of the City except police and fire departm ents. C ERS provides retirem ent, disability, and death benefits to plan m em bers and their beneficiaries. Cost-of-living adjustments (COLA) are provided with approval of the City Council.
Contributions. Plan m em bers are required to contribute 6% of their annual covered salary. The C ity is required to contribute at an actuarially determ ined rate. As of June 30, 2000, the City contributed $198,591 in em ployer contributions or 11% of covered payroll. C ontribution requirem ents of the plan m em bers and the City are established and m ay be am ended by state law .
A nnual Pension Cost and Net Pension O bligation The City's annua pension cost and net pension obligation to the C ity Em ployees' Retirem ent System for the current year w ere as follow s:
A nnual required contribution $ 461,537 Interest on net pension obligation 19,833
Adjustm ent to annual required contribution ~ J~31,002) A nnual pension cost 450,368
Contributions m ade _ (306,902) Increase (decrease) in net pension obligation 143,466 Net pension obligation beginning of year 293.816
Net pension obligation end of year ~ 4.37,282
The annual required contribution for the current year w as determ ined as part of the June 30, 2000 actuarial valuation using the entry age actuarial cost m ethod. The actuarial assum ptions included (a) 6.75% investment rate of return and (b) projected salary increases of 4.5% per year of C ITY O F BO G A LUSA Page 36 BO G ALUSA , LO U ISIA NA Notes to the General-Purpose Financial Statem ents (continued) em ploym ent. The assum ptions did not include postretirem ent benefit increases, w hich are funded from investm ent earnings over 6.75% w hen granted. The actuarial value of assets w as determ ined at m arket value. The unfunded actuarial accrued liability is being am ortized as a level percentage of annual com pensation. The rem aining am ortization period at June 30, 2000 w as 13 years.
THREE-YEAR TREND INFO RM ATIO N
Actuarial Actuarial Actuarial Accrued Unfunded Valuation Value of Liability (AAL) Actuarial Accrued Funded Covered Date Assets Entry Age Liability (UAAL) Ratio Payroll
06/30/98 7,353,276 9,392,159 2,038,883 78.29% 1,626,218 06/30/99 7,743,387 10,425,674 2,682,287 74.27% 1,766,555 06/30/00 7.416,976 11.346.761 3.929,785 65.37% 1,691.504
Annual Fiscal Required Percentage Year Contribution Contributed Ending Em ployer By Em ployer
06/30/98 383,699 75.38% 06/30/99 377,328 79 03% 06/30/00 461.537 66.50%
Deferred Retirem ent O ption Plan. In July of 1997 the C ity of Bogalusa Retirem ent System w as am ended by the Louisiana Legislature to provide for a Deferred Retirement Option Plan (DROP). After com pleting the required years of creditable service and attaining the required age a m em ber m ay elect to participate in the D RO P plan.
Upon com m encem ent of participation in the plan, em ployer and em ployee contributions to the System cease. The m onthly retirem ent benefit that w ould have been payable is paid into the Deferred Retirem ent O ption Plan account.
Upon term ination of em ploym ent, a participant in the program shall receive,
at his option, a lum p sum paym ent from the account, or he m ay elect any other m ethod of paym ent approved by the board of trustees deferred retirem ent option plan account balance in addition to his regular retirem ent benefits.
If em ploym ent is not term inated at the end of three years, the participant resum es regular contributions in the System .
The DRO P account at June 30, 2000 was $326,410 C ITY O F BO G A LUSA Page 37 BO G A LUSA . LO U ISIANA Notes to the General-Purpose Financial Statements (continued)
Policem en's Pension and Relief Fund
Plan Description. PPRF w as a single-em ployer defined benefit pension plan. O n January 1, 1976 the C ity and the Board of Trustees of the PPRF m erged the m em bers of the PPR F w ho had not yet retired w ith the M unicipal Police Em ployees' Retirem ent System of the State of Louisiana under the authority of Resolution No. 882 of the C ity Council. A t the tim e of the passage of the resolution and at the tim e of the m erger, all of the m em bers of the police force, except for three individuals w ho brought suit against the C ity to be allow ed to rem ain m em bers of the PPR F, had previously voluntarily joined the state retirement system under a statute which allows individual city police oficers to voluntarily join the state system on their ow n accord. The law suit involving the three individuals w ho w ished to rem ain in the PPR F w as settled by having the PPRF pay the three individuals the pension and retirem ent benefits that they w ould have been entitled to under the city system , if the system had not m erged w ith the state police retirem ent system , from the tim e that the individuals have 20 years of service w ith the Bogalusa Police Departm ent until the tim e that they reach 50 years of age and are qualified to start receiving pension and retirem ent benefits fro~x~ the StBte M unicipal Police Em ployees' Retirem ent System . Therefore, the PPR F only covered those policem en and their fam ilies w ho had retired prior to the m erger except for the three policem en m entioned above w ho w ere covered from retirem ent until they attain age 50.
The rem aining m em bers of the P PR F m erged w ith the M unicipal Police Em ployees' Retirem ent System of the State of Louisiana effective Decem ber 31. 2000.
_C.on_tributjpns. There were no m em ber contributions since all m em bers of the system w ere retired or m erged w ith the state system . The C ity contributed 25% of all court fines and 20% of m oney collected for licenses, privilege taxes, and perm its for selling alcoholic beverages. This system w as also funded by a 2.77 m ills ad valorem tax.
Firem en's Pension and Relief Fund
_P[aq__De&crjption. FPRF was a single-em ployer defined pension plan. O n February 3, 1981 the C ity and the Board of Trustees of the FPR F m erged the m em bers of the FPRF w ho had not yet retired w ith the State of Louisiana Firefighters Retirem ent System under the authority of O rdinance No. 1029 of the C ity Council. Em ployees covered by the transfer w ere all full-tim e em ployees w ho w ere not receiving retirem ent benefits or w ere not eligible for retirem ent benefits on the date of m erger. C ITY O F BO G ALUSA Page 38 BO G A LU SA , LO U ISIA NA Notes to the General-Purpose Financial Statements (continued) "The remaining nlem bers of the FPRF (those that had retired on or before February 3, 1981) m erged with the State of Louisiana Firefighters Retirem ent System effective Decem ber 31, 2000.
C ontribution. There w ere no m em ber contributions since all m em bers of the system w ere retired or m erged w ith the state system . This system was also funded by a 3.10 m ills ad valorem tax, one-half of a 2% fire insurance tax received from the State of Louisiana and supplem ents from the City w hen necessary.
b. State of Louisiana Firefighters Retirem ent System
1. Plan Description
The Firefighters Retirem ent System is a cost-sharing, m ultiple-em ployer defined benefit pension plan, w hich covers all active firem en and their fam ilies.
Em ployer m em bers as of June 30, 2000 is as follow s
C ities 47 Parishes 9 S pecial districts 28
Total em ployer m em bers ~ 84
Firefighter's Retirem ent System issues a publicly available financial report that inctudes financial statem ents and required supplem entary inform ation. The financial report m ay be obtained by w riting to Firefighter's Retirem ent System , P. O . Box 94095, Capitol Station, Baton Rouge, LA 70804-9095, or by calling (225) 925-4060.
2 Sum m ary of Significant A ccounting Policies
Basis ofAccountina. The financia statem ents of Firefighter's Retirem ent System are prepared using the accrual basis of accounting. C ontributions are recognized in the period in w hich the em ployee is com pensated for services. Benefits and refunds are recognized w hen due and payable.
M ethod U sed to V alue Investm ents A ll investm ents are fixed-incom e securities and com m on stock, and are reported at fair m arket value based on quoted m arket prices. C iTY O F BO GA LUSA Page 39 BO G A LU SA , LO U IS IA NA Notes to the General-Purpose Financial Statements (continued)
3. C ontributions
C ontributions for all m em bers are established by state statute at 8% of earnable com pensation. The contributions are deducted from the m em ber's salary and rem itted by the participating agency.
4. Concentrations
Investm ents held by the Firefighter's Retirem ent System include
M arket Value U .S . G overnm ent Securities $ 165,721,452 Corporate Bonds 117,133,576 C om m on Stock 302.004.848
Tota 58~_8.b~876._.
c. M unicipal Police Em ployee's Retirem ent System of the State of Louisiana
1. P/an D_ esc~riotion
The M unicipal Police Em ployee's Retirem ent System is a cost-sharing m ultiple-em ployer defined benefit pension plan, w hich covers all active policem en, police departm ent em ployees, and their fam ilies, at June 30, 2000 there w ere 156 contributing m unicipalities. M unicipal Police Em ployee's Retirem ent System issues a publicly available financial report that includes financial statem ents and required supplem entary inform ation. The financial report m ay be obtained by w riting to M unicipal Police Em ployee's Retirem ent System of Louisiana, 8401 United Plaza Boulevard, Baton Rouge, LA 70809-2250, or by calling (225) 929-7411.
2. Sum m ary of Significant A ccounting Policies
Basis of Accounting. The financial statem ents of M unicipal Police Em ployee's Retirem ent System are prepared using the accrual basis of accounting. C ontributions are recognized in the period in w hich the em ployee is com pensated for services perform ed. Benefits and refunds are recognized w hen due and payable in accordance w ith the term s of the plan. C ITY O F BO G A LUSA Page 40 BO G A LU SA , LO U IS IA NA Notes to the General-Purpose Financial Statements (continued) M othod U sed to V alue Investm ents. A ll investm ents are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Investm ents that do not have an established m arket value are reported using estim ated future cash flow s.
3. C ontributions
C ontributions for all m em bers are established by state statute at 7.50% of earnable com pensation. The contributions are deducted from the m em ber's salary and rem itted by the participating m unicipality.
4. C oncentrations
nvestm ents held bythe M unicipal Police Em ployee's Retirem ent System nclude:
M arket Value Deposit on real estate 100,000 R epurchase agreem ents 8,352,319 Bonds, notes, and m ortgages 238,103,848 M arketable securities-dom estic 414,330,225 Foreign com m ingled trusts 164,036,139 M utual funds-dom estic 725,000 Pooled Bond Fund 133.319.016 Investm ents held by brokers-dealers in w hich collateral m ay be reinvested: Bonds, notes, and m ortgages 110,783.311 M arketable securities-dom estic 40.403,334 Collateral held under securities lending program -repurchase agreem ents 149.457.381 Collateral held under securities lending program -m oney m arket account 3,879,762
Tota $ 1,263..,490,335
11. SUM M A RY O F G EN ERA L LO NG -TER M D EBT
The follow ing is a sum m ary of general ~ong-term debt transactions of the City of Bogalusa for the year ended Decem ber 31, 2000: C ITY O F BO GA LUSA Page 41 BO G A LU SA , LO U ISIA NA Notes to the General-Purpose Financial Statem ents (continued)
Long4erm Long-term Debt Debt Debt Debt 1/1/00 Incurred Retired 12/31/00 G eneral obligation bonds 1975 issue $ 10,000 $ 10,000 1992 issue 640,000 65,000 575,000 1998 sew er bonds 5.122,564 79,212 195.000 5,006,776 Accum ulated unpaid vacation and sick pay 601,780 58,113 659.893 Due to Firefighters' Retirem ent System 952,819 646,216 60,372 1,538,663 Capital leases 284,236 184,104 82,238 386,102 C hoctaw Road Landfill closure and care costs 283.761 751.675 1,035,436 O ld Bogalusa Landfill post- closure care costs 20,500 6 815 27,315 Net Pension O bligation 344,766 92 516 437~282 ~_ 8260,426 ~=,~[1.8J8,651 ~. _412E610 $ 9~666j467
12. A N N UA L M ATU R ITY R EQ U IR EM ENTS O F BO N DS A N D C ERTIFICATES O F INDEBTEDNESS
The annual requirem ents to am ortize all bond and certificate debts outstanding are as follows for the year ending Decem ber 31 (in thousands):
2006 and
2_ 005 Thereafter Total _ D_ e_s_c_rjption 2001 2002 2003 2004 G eneral O bligation Bonds: 1992 Issue 4.4 -9.00% $ 70 $ 75 $ 80 $ 80 $ 85 $ 185 $ 575 Estim ated: 1998 Issue
3.95% 205 210 220 _ ..230 . 240 4 110 _ 5,215 Total bonds ~.275 3_285 $_300 ~ 10 ~ 325 }A1295 ~ 5.790
nterest Requirem ents G eneral O bligation Bonds: 1992 issue $ 29 $ 26 $ 22 $ 17 $ 12 $ 11 $ 117 Estim ated:
1998 Issue _ 292 194 185 176 167 _1..143 __2.Q6Z "fotal interest ~ 231 ~220 $ 207 $ 193 ~ 177 $ 1,154 _~2,184 C ITY O F BO G A LUSA Page 42 BO G A LUSA , LO U ISIA NA Notes to the General-Purpose Financial Statements (continued) 13. PRO PR IETA RY FU N D : LO NG -TERM O B LIG ATIO N S
The follow ing is a sum m ary of long-term liabilities at Decem ber 31, 2000
$3,170,000 $1,730,000 $2,000,000 Sales Tax Sewer Sewer Bonds Sewer Revenue Revenue Payable Certificate of
Bonds Bonds Bonds _] o[al Indebledness O utstanding, 12/31/99 $ 1,853,594 $ 1,665,000 $ 1,129,408 $ 4,648,002 $ 210,000 Additions 1,256,362 870.592 2,126,954
Reductions (110,000) (65,000) .~ 17&900) _ (2o~oQq) Outstanding, 12/31/00 ~ 2,999,956 $__1,600,000 ~;2,000,000. $6,599,956 ~ 19Q,000
A schedule of annual debt service requirem ents for the bonds and certificates for each of the next five years and thereafter is as follow s:
Year Principal Interest Tota
2001 $ 275,000 $ 494,000 2002 280,000 490,000 2003 295,000 496,000 2004 300,000 490,000 2005 315,000 495,000 Thereafter 6.644.956
The State of Louisiana, w ith federal funds, has established a "State Revolving Fund" to be used to assist local governm ents to finance the construction of eligible w astew ater treatm ent facilities. The C ity's application for such a loan was for $12,500,000; the first installm ent of w hich was $5,600,000 represented by a general obligation bond (included in the General Long-Term Debt Account Group), the second installment of which was $3,170,000 represented by sales tax sewer bonds, the third was $1,730,000 represented by a utility revenue bond, and the fourth was $2,000,000 represented by a utility revenue bond. The am ounts borrowed on each series of bonds at Decem ber 31. 2000 follow s:
$5,600,000 G eneral O bligation Sewer Bonds $3,170,000 Sales Tax Sewer Bonds $1,730,000 Sewer Revenue Bonds $2,000,000 Sewer Revenue Bonds
Total amount borrowed ~.~!2L2311734 C ITY O F BO GA LUSA Page 43 BO G A LU SA , LO U ISIA NA Notes to the General-Purpose Financial Statements (continued) The sales tax sewer bond and the revenue bonds are reported as bonds payable in the Utility Fund. The general obligation bond is reported in the general long-term debt account group. The $3,170,000 sales tax sewer bond is financed through revenues of the Utility Fund and bears an interest rate of 3.45% . The $2,000,000 sewer revenue bond is financed through revenues of the Utility Fund and bears an interest rate of 3.45% . The $1,730,000 sewer revenue bond is financed through revenues of the Utility Fund and bears an interest rate of 2.45% .
The City obtained a $250,000 certificate of indebtedness dated October, 1997, to pay for em ergency repairs to the w ater screw . M onies used to pay the certificates are generated from utility revenues. The interest rate on the certificates range from 4.75% to 5.3% . The certificates m ature A pril 1, 2007. The balance of the certificate of indebtedness as of Decem ber 31, 2000 is $190,000.
14. N ET PE N S IO N O B LIG A TIO N
D uring 1996, the C ity im plem ented G A SB Statem ent No. 27, A ccounting for Pensions by State and Local G overn m ental Em ployers. The GASB required, am ong other things, that the liability balance of the Net Pension O bligation (NPO), be recognized in the general long-term debt account group. The NPO has been defined as the cum ulative difference since 1986 betw een annual pension cost and the em ployer's contributions to the plan. Accordingly, the NPO has been com puted to be $437,282 as of Decem ber 31, 2000, and has been added in the general long-term debt account group.
15. CO M PENSATED ABSENC ES
At Decem ber 31, 2000, em ployees of the prim ary governm ent have accum ulated and vested $659,893 of leave benefits, which was com puted in accordance w ith GASB Codification Section C60 and is recorded w ithin the general long-term debt account group. The leave liability for em ployees of the Enterprise Fund, for $75,606, is accounted for w ithin the fund.
16. DUE TO LO U ISIANA FIREFIG HTERS' RETIR EM ENT SYSTEM
O n February 3, 1981 the C ity and the Board of Trustees of the Firem en's Pension and Relief Fund m erged their m em bers w ho had not retired w ith the State of Louisiana Firefighters' Retirem ent System . Under the term s of the m erger, the C ity had to buy into the state system for $1,655,753. The City makes annual payments of $127,069 including interest (7% ). C ITY O F BO G A LUSA Page 44 BO G A LU SA , LO U IS IA NA Notes to the General-Purpose Financial Statements (continued) The annual requirem ents to am ortize the debt to the Firefighters' Retirem ent System are as follows for the year ended Decem ber 31 (in thousands):
2006 and 2001 2002 2003 2004 2005 Thereafter To3t 1
Principal $ 65 $ 69 $ 74 $ 79 $ 85 $ 521 $ 893 Interest 62 58 53 48 42 114 377 $ 127 9127 $ 127 $ 127 ~___!27 $ 635 -$ 1,270 Effective Decem ber 31, 2000, the C ity and the Board of Trustees of the Firem en's Pension and Relief Fund (FPRF) merged their members who had retired on or before February 3, 1981 w ith the State of Louisiana Firefighters Retirem ent System . U nder the term s of the m erger, the C ity had to buy into the state system for $792,562. The CFRS m ade a down paym ent of $104,727; the remaining cash of $41,619 was applied to the first installment. The rem ainder of the debt of $646,216 was assum ed by the City to be repaid in ten equal annual payments of $91,525 including interest(7% ) beginning January 15, 2001.
The annual requirem ents to am ortize the debt to the Firefighters Retirem ent System are as follows for the year ended Decem ber 31 (in thousands):
2006 and
2001 2002 _2003 2004 2005 Thereafter Tota
Principal $ 49 $ 50 $ 54 $ 57 $ 61 $ 375 $ 646
Interest 42 38 35 31 82 _ _ 728 ~ .49 $_92. $ 92 _$.92 $ 92 $ 457 $ 874 The total am ount ow ed to the State of Louisiana Firefighters' Retirem ent System as of Decem ber 31, follows (in thousands):
From February 3, 1981 m erger (above) $ 893 From Decem ber 31, 2000 merger (above) 646
Tota $ 1,539 . _ _
17. C A PITA L LEA SES
[he C ity is obligated under certain leases for copying equipm ent, a fire truck, and police cars accounted for as capital leases. The leased assets and related obligations are accounted for in the G eneral Fixed A ssets A ccount G roup and the G eneral Long-Term Debt A ccount G roup, respectively. The follow ing is a schedule of future m inim um lease paym ents as of Decem ber 31,2000: C ITY O F BO GA LUSA Page 45 BO G A LU SA , LO U ISIA NA Notes to the General-Purpose Financial Statements (continued) Year ending Decem ber 31 2001 2002 2003 2004 M inim um lease paym ents for capita Less: am ount representing interest
Present value of m inim um lease paym ents $ 386~102
18. SO LID W A STE LA N D FILL C LO SU R E A N D PO ST-C LO SU R E CA R E C O STS
a) Choctaw Road Landf
State and federal law s and regulations require the Choctaw Road Landfill (a joint venture of the City of Bogalusa and the W ashington Parish Government) to place a final cover on its landfill site w hen it stops accepting w aste and to perform certain m aintenance and m onitoring functions at the site for 30 years after closure. A related liability is being recognized based on the future closure and postclosure care costs that w ill be incurred near or after the date the landfill no longer accepts w aste. The recognition of these landfill closure and postclosure care costs is based on the am ount of the landfill used during the year. The estim ated liability for landfill closure and postclosure care costs at Decem ber 31,2000, determ ined by the landfill's engineer, was $2,471,207. However, the actual cost of closure and postclosure care m ay be higher due to inflation, changes in technology, or changes in landfill law s and regulations.
The C ity is not required to set aside funds in escrow to finance future closure and postclosure care costs.
The C ity's portion of the liability reported in G eneral Long-'term Debt A ccount G roup is com puted as follow s:
fotal estim ated liability $ 2,471,207 C ity's participating percentage X 41.9% C ITY O F BO G A LUSA Page 46 BO G A LUSA , LO U IS IA NA Notes to the General-Purpose Financial Statem ents (continued) C ity's liability $ 1,035,436
b) Old Bogalusa Landfi
The C ity is under an order from the Louisiana Departm ent of Environm ental Q uality to m ake certain postclosure im provem ents to the O ld Bogalusa Landfill. The C ity's Engineer has estim ated that the C ity w ill incur reclosure and postclosure care costs over the next three years at 27.315
Total landfill closure and postclosure care costs _$ 1,062,751
19. R ISK M A NA G EM ENT
The C ity of Bogalusa participates in a public entity risk pool for w orkers' com pensation. Per the contract w ith the public entity risk pool, the C ity of Bogalusa transfers all risk to the public entity risk pool. The C ity is only responsible for the paym ent of prem ium s and deductible on claim s. The public entity risk pool is responsible for the paym ent of claim s excluding the deductible. The total am ount due to the public entity risk pool for deductibles as of Decem ber 31, 2000 is $253,787.
20. INTERFUND R EC EIVABLES AN D PAYABLES
Reflected in the accom panying financial statem ents of the City are the follow ing interfund receivables and payables: C ITY O F BO G A LUSA Page 47 ~,O G ALU SA , LO U ISIANA Notes to the General-Purpose Financial Statements (continued) Interfund Interfund
Receivables _ P ayables
G enera~ Fund $ ~01,52! ~_ _ 246,907
Special Revenue Funds Industrial C om plex Sales Tax 38.418 Em ployee Pay Raise 2,338 Street Im provem ent Sales Tax 187.090 38,418 C apital Im provem ent Sales Tax 18,345 Industrial Park Rent 52,960 22.886 Airport M aintenance 13,500 Senior C itizens Program s 15,375 Recreation and Parks 15.375 Landfill 375
_ 422,718 82.362
Capital Projects Funds Landfill Im provem ent 375 A irport Expansion 151,890 375 151.890 Enterprise Fund W ater and Sew er Sales Tax 161 076 W astew ater Im provem ent 26 490 Utility Fund 194~174 250 069
194 174 437 63_5
~_ 918,794.
21. JUN E 30, 2000 FISCA L YEA R EN D INC LU F)ED
All funds and account groups have a calendar year end of Decem ber 31,2000, except the C ity Em ployees Retirem ent System . It has a fiscal year end of June 30, 2000, so the figures for the year ended June 30, 2000 have been included.
22. G RA NTS FR O M O TH ER G O V ER N M ENTA L U N ITS
Federal and state governm ental units represent an im portant source of supplem entary funding used to finance em ploym ent, construction program s, and other activities beneficial to the com m unity. This funding, prim arily in the form of grants, is recorded in the G eneral Fund, Special Revenue Funds, and Capital Project Funds. A grant receivabte is recorded when the City has a right to reim bursem ent under the related grant. C ITY O F BO G A LU SA Page 48 BO G A LUSA , LO U ISIA NA Notes to the General-Purpose Financial Statements (continued) Som e of the grants received by the C ity specify the purpose for w hich the grant monies are to be used and such grants are subject to audit by the granting agency. No m aterial am ounts have been disallow ed as a result of any audits for the year ended Decem ber 31,2000.
23. LEASES O F C ITY PRO PERTY
The C ity of Bogalusa has operating leases for various buildings, land and im provem ents. The lease term 's range from five years to fifteen years. The follow ing is a schedule of future m inim um lease com m itm ents for the next five years: Year A m ount 2001 $ 207,848 2002 215,448 2003 223,048 2004 223,048 2005 223,048
Operating lease incom e for Decem ber 31, 2000 was $199,896
24. CO M PENSATIO N PAID TO C ITY C O UNC IL AN D M AYO R
N am e T itle A m ount
Jam es M . M cG ehee M ayor 43,241 W ilton R . D unaw ay C ity Counc - At Large 7,200 M ichael Herring C ity C ounc - At Large 7,200 Barry W . Bolton C ity C ounc - D istrict A 7,200 M cO lurie Sam pson C ity C ounc - D istrict B 7,245 Reubin Sum rall C ity Counc - D istrict C 7,200 Johnnie Holcom b C ity Counc - D istrict D 7,755 Daniel D . Stogner C ity C ounc - D istrict E 7.200
25. LITIG ATIO N
At Decem ber 31, 2000, the C ity w as a defendant in several law suits arising principally from the norm al course of operations. The ultim ate resolution of these law suits w ould not m aterially affect the financial statem ents in the estim ation of the legal advisor of the C ity. He has also advised that provisions of the Louisiana Constitution do not permit a person holding a judgment against the City to levy or collect that judgement against any assets of the City in a judicial fashion. C ITY O F BO GA LUSA Page 49 BO G A LU SA , LO U ISIA NA Notes to the General-Purpose Financial Statements (continued) 26. EXPEND ITURES - BU DG ET AN D ACTUAL
In the follow ing individual funds, actual expenditures exceeded budgeted expenditures for the year ended Decem ber 31, 2000:
Expenditures U nfavorable
Budget _Actual Variance
Street Im provem ent Sales Tax $ 258,500 $ 374,547 $ 116,047 C apital Im provem ent Sales Tax 934.260 470.743 36,483 Industrial Com plex R ent/Lease 202.000 214.812 12,812 Parks and R ecreation C om m ission 3.400 7,346 3.946 Recreation and Parks 998 998
27. PR IO R PE R IO D A DJU STM E N TS
ENTERPR ISE FUND
A prior period adjusting entry was required to correct contributed capital and retained earnings as reported by the C ity in the utility system operating fund as of Decem ber 31. 1999 as follow s:
Contributed Retained C apital Ea r ni n gss
Am ount reported $ 7,697,121 $ 6,342,447
Prior period adjustm ent _ ~ 4 657,284 (4~657~2,9_4._ )
.$_ 1~2354,405 ~_ 1,685,163
G ENERAL LO NG -TERM DEBT ACCO UNT G RO UP
O n Decem ber 31, 1999 the City ow ed the State of Louisiana Firefighters' Retirem ent System $952,819. The liability that showed on the financial statem ents was $1,019,516, for an overstatem ent of $66,697. The effect of the prior period adjustment was to decrease the am ount due to Firefighters' Retirem ent System and the am ount to be provided for retirem ent of long-term debt in the am ount of $66,697. RIC HA RD M , SEA L Page 50
C ERTIFIED PU BLIC A C C O U N TA N T o C ERTIFIED G O V ERN M EN T FIN A N C IA L M A N A G ER
N D EPEN D ENT A U D ITO R 'S R EPO RT O N CO M PLIA NC E A N D O N INTERNA L C O NTRO L O VER FINA NCIA L REPO RTING BA SED O N A N A UDIT O F FINANC IAL STATEM ENTS PERFO RM ED IN ACC O RDANC E W ITH G O VERN M EN T A UDITIN G STANDA RD S
The Honorable J. M . "M ack" M cG ehee, M ayor and the M em bers of the C ity C ouncil C ity of Bogalusa, Louisiana
I have audited the financial statem ents of the City of Bogalusa, Louisiana as of and for the year ended Decem ber 31, 2000, and have issued m y report thereon dated June 27, 2001. I conducted m y audit in accordance w ith generally accepted auditing standards and the standards applicable to financial audits contained in G overnnrent A uditing Standards, issued by the Com ptroller G eneral of the U nited States.
C om pliance
As part of obtaining reasonable assurance about w hether Choctaw Road Landfill's financial statem ents are free of m aterial m isstatem ent, I perform ed tests of its com pliance w ith certain provisions of law s, regulations, contracts and grants, noncom pliance w ith w hich could have a direct and m aterial effect on the determ ination of financial statem ent am ounts. However, providing an opinion on com pliance with those provisions was not an objective of my audit and, accordingly, t do not express such an opinion. The results of m y tests disclosed no instances of noncom pliance that are required to be reported under G overnm ent A uditing Standards.
Internal C ontrol O ver Financial Reporting
In planning and perform ing m y audit, I considered C hoctaw Road Landfill's internal control over financial reporting in order to determ ine m y auditing procedures for the purpose of expressing m y opinion on the financial statem ents and not to provide assurance on the internal control over financial reporting. M y consideration of the internal control over financial reporting w ould not necessarily disclose all m atters
PO SF O FFIC E BO X 128 o BO G A LUSA , LO UISIA NA 70429-0128 o (504) 732-2536 o FAX (504) 732-2537 Page 51 in the internal control over financial reporting that m ight be m aterial weaknesses. A m aterial w eakness is a condition in w hich the design or operation of one or m ore of the internal control com ponents does not reduce to a relatively low level the risk that m isstatem ents in am ounts that w ould be m aterial in relation to the financial statem ents being audited m ay occur and not be detected w ithin a tim ely period by em ployees in the norm al course of perform ing their assigned functions. I noted no m atters involving the internal control over financial reporting and its operation that I consider to be m aterial w eaknesses.
This report is intended for the inform ation of the M ayor, the C ity Council, and the office of the Louisiana Legislative A uditor. However, this report is a m atter of public record and its distribution is not lim ited.
Certified Public A ccountant
Bogalusa, Louisiana June 27. 2001 Page 52
S UPPLEM EN TA L IN FO R M A TIO N Page 53
G E N E R A L F U N D
To account for resources traditionally associated w ith governm ents w hich are not required to be accounted for in another fund. Page 54
C ITY O F BO GA LUSA , LO U ISIA NA G EN ERA L FU N D
BA LANC E SHEET Decem ber31.2000
ASSETS Cash 637 206 R eceivables 879 402 Due from other funds 301 527 Inventory of supplies, at cost 59 691
TOTAL A SSETS $ 1,87Z ,826
LIA BILITIES A ND FUND BA LANC E
LIA BILITIES : Accounts payable $ 152,069 W orkers' com pensation claim s payable 253,787 D ue to other funds 246.907 Certificates of indebtedness 975.000 Total liabilities 1.627.763
FU N D BA LA NC E: Reserved for: Inventory of supplies 59,691 Unreserved fund balance 190,372 Total fund balance 250,O63
TOTAL LIABILITIES AND FUND BALANCE ~ 1,877,826
See accom panying auditor's report Page 55
CITY O F BO GA LUSA , LO UISIANA G ENERA L FUND
STATEM ENT O F REV EN UES, EXPENDITURES, A ND C HA NG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31. 2000
Variance- Favorable BudgAL Actual ~Unfa'4o[~ Revenues: "]axes: Ad valorem $ 1,159,902 Sales 2,700,402 Sales-penalty and interest 3,692 Beer 32,565 Tobacco 34,806 Bogalusa Housing A uthority 28,299 Licenses and perm its: G eneral occupational 410,000 374,768 (35,232) C hain store licenses 10,000 9,869 (131) Building perm its 13,000 9,775 (3,225) Electric w iring perm its 15,000 13,257 (1,743) Plum bing perm its 5,000 3,557 (1,443) Heatin9 and air perm its 1,500 326 (1,175) Beer & liquor licenses 13,550 13,550 M iscellaneous perm its 2,000 1,625 (375) Franchise fees: L P & L 2% electrica 198,000 182,015 (15,985) Entex 99,000 t21,164 22,164 C harter Com m unications C ablevision 60,000 60,662 662 ntergovernm ental: State of LA supplem ental pay 267,480 265,470 (2,010) Ballpark G rant 12,000 (12,000) Crash Data G rant 2,185 2,185 In Hom e Detention G rant 7,100 722 (6,378) R ural Developm ent G rant 12,000 12,o00 Safe and Sober G rant 4,100 6,681 2,581 Cops Fast G rant 14,508 14,508 Cops M ore-equipm ent 26,720 17,325 (9,395) Avenue B Ballpark 73,710 74,714 1,004 Local Law Enforcem ent Block G rant 34,290 25,484 (8,806} G overnor's Safe & Drug Free Schools 19,850 19,508 (342) Violence Against W om en 12,000 12,000 ICAP G rant 13,750 13,622 (128) Louisiana Com m ission on Law Enforcem ent G rant 1,110 34.484 33.374
(Continued) See accom panying auditor's report Page 56
C ITY O F BO GA LUSA , LO UISIA NA G EN ERA L FU N [)
STATEM ENT O F REVEN UES, EXPEND ITURES, A ND C HA NG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended D ecem ber 31. 2000
Variance- Favorable Budget Actual ~Unfavor_abJe) Revenues (Cont'd) Service charges: Universal Hiring G rant $ 30,000 $ $ 30,000) Narcotics Response Team G rant 16,730 11,092 (5,638) Zoning changes 1,500 1,625 125 C em etery plot sates 13,000 11,500 (1,5oo) Fines and penalties 60.000 44.625 15,375) M iscellaneous: Sa)e of equipm ent 13,141 13,141 Sale of property 15,000 8,664 (6,336) 2% fire insurance 26,080 26,319 239 O ther m iscellaneous receipts 60,000 61,543 1.543
Interest _ _ _ L2J_6
Total revenues .~5537=820 5~443~ 2! LlO3,ogp)
Expenditures: G eneral G overnm ent: Legislative: Salaries and w ages 80,950 83,064 (2,114) Contract overtim e 600 788 (188) Supplies 4,950 4,161 789 G roup insurance 3,200 3,781 (581) "[ravel 16,000 14,860 1,140 Auditing fee 39,000 41,000 (2,000) Publications 4,000 7,523 (3,523)
M iscellaneous 130 200 _ 170)
Total legislative 148 =83_ 9 155.377
Judicial: City Attorney 40,000 40,630 (630) City Prosecutor 12,000 12,000
Prosecutor office allow ance _ . 7200 7 200
Total judicial _ 59 =2_00 _ 59 830 (630)
Executive: Salaries and w ages 60,590 64,426 836 O vertim e 600 833 233 Supplies 6,000 5,290 710 G as and oil 1.200 1.022 178
(Continued) See accom panying auditor's report Page 57
CITY O F BO GA LUSA . LO UISIA NA G EN ERA L FU N D
STA TEM ENT O F R EV EN UES, EXPEN D ITUR ES, A N D C HA N G ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31. 2000
Variance- Favorable Budget Actual ~Uo~avoraNe) Executive (Cont'd): G roup insurance $ 6,410 $ 6,467 $ (57) Travel 6,000 2,807 3,193 Publications 1,0O0 1,059 (59) M iscellaneous 750 1,074 (324)
Dues/subscriptions _ 5,oo_ o _ 6 296 (1,296)
Total executive _ 87,550 89~274 (31 24)
Personnel: Salaries and w ages 46,650 47,483 (833) C ontract overtim e 600 449 151 G roup insurance 6,410 6,144 266 Supplies 1,500 1,712 (212 Em ployee training m aterials 4,500 1,045 3,455 G as and oil 700 401 299 Travel 900 20 880 Education and training 700 700 D ues and subscriptions 400 160 240
Total personnel _ 62,360 57 414 4~ 94~
Adm inistration: Salaries and w ages 222,050 199,947 22,103 Contract overtim e 6,000 3,570 2,430 O vertim e 5,000 3,499 1,501 Supplies 22,500 20,447 2,053 G roup insurance 32,600 30,340 1,660 Travel 2,700 2,703 (3) G as and oil 1,300 973 327 Contract labor 6,900 5,700 1,200 Com puter m aintenance 5,000 4,926 74 Com puter education and training 2,700 3,190 (490) M iscellaneous 676 796 (126) Purchasing: Salary and wages 090 83,088 2 C ontract overtim e 600 709 (109) O vertim e 100 192 (92) G roup insurance 210 11,477 (267)
(Continued) See accom panying auditor's report Page 58
CiTY O F BO G ALUSA , LO UISIANA G EN ERA L FU N D STATEM ENT O F REVENUES, EXPENDITURES , AND C HANG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended D ecem ber 31,2000
Variance- Favorable Actual [U~nfaxe~rabe) _BB#AgeL Administration (Cont'd): Purchasing (Cont'd) $ 4,000 $ 4,989 $ (989) Supplies 1,087 113 "[ravel 1,200 2,000 2,115 015) G as and oil e Advertising _ _ ,23~ / Total adm inistration 411 520 3~ 4.78 [_ 29 o42
G eneral and adm inistrative: M aintenance of m unicipal buildings 27,000 25,050 1,950 18,030 21,026 (2,996) interest 517,112 2,178 Insurance 519,290 Legal and professional 20,000 20,762 (702) 387,000 385,969 1,031 Utilities 1,180 Assessor's salary 7,300 6,120 38,005 3,735 Sales tax expense 41,740 7,876 (~76} C oroner's expense 7,000 V.A service office 4,730 5,568 (838) C ity Court supplies and expense 4,500 8,669 (4,169) Civil Service 2,000 3,161 (1,161) Christm as in the Park 485 (485) 3,000 3,000 Council on aging 18,946 M iscellaneous 65.000 46,054 Avenue B ballpark 74,565 (74,565) Payroll tax expense 57,000 57,677 (577} 11.928 (11,928) Election expense W ashington Parish Youth Service 3,000 3,000 Planning and zoning 1.500 2,400 (990) Rural developm ent ballpark expense j 2~q57 _ _ (/12.057)
~ _ (79j233) "total 9eneral and adm inistrative _ 1.16~ 90 1,247~323 Total general government 1.937~550 ~1 9911~696 _ (5A 146)
Public safety: Police: Salaries and wages 48,500 55,022 6,522) 11,600 9,385 1,615 Shill difierer~t(al 8,231 C ontract overtim e 20,060 11,829 62.530 3.000 O vertim e 65.530
(Continued) See accom panYir~9 auditor's report Page 59
C ITY O F BO G A LUSA , LO UISIA NA G EN ERA L FU N[)
STATEM ENT O F REVENUES, EXPENDITURES, AND C HANG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31, 2000
Variance- Favorable
Budget_ Actual .~U n[avorable3 Police (cont'd): Holiday pay $ 67,000 65,910 $ 1,090 State supplem ental pay 152,810 144,030 8,780 G .R.A+N.D. Program 2,000 2,000 G as and oil 50,000 56,015 (6,015) G roup insurance 160,790 160,735 55 Supplies 140,460 98,846 41,614 School patrol 20,000 23,075 (3,075) Prepaid uniform allowance 12,000 11.800 2O0 Care of prisoners 2,000 2,000 Repairs to equipm ent and radios 12,000 8,432 3,568 Travel 4,500 4,086 414 Special investigations 2,000 576 1,424 Narcotics investigations 5,000 962 4,038 Education 13,500 12,359 1,141 Com puter m aintenance 8,470 671 7,799 Operation and maintenance of ja 45~ ooo 26.026 Total police 2.142,620 2 045 236 97~ .384
Fire Salaries and w ages 892,110 881,782 10,328 Holiday pay 46,000 49,023 (3,023) Shift differential 6,000 5,812 188 Contract overtim e 69,000 74,499 (5,499} O vertim e 15,300 18,863 (3,563) State supplem ental pay 114,670 121,440 (6,770) G roup insurance 117,290 116,419 871 Prepaid uniform allowance 7,600 7,000 600 Supplies 20,350 18,239 2+111 G as and oil 6,000 8,010 (2,010) Repairs to equipm ent 3,800 3,747 53 Education 5,400 252 5,148 Travel 720 490 230 Total fire 1 304 240 1,30~ Total public safety 3.446.860 3,3~ 812 96,048
(Continued) See accom panying auditor's report Page 60
C ITY O F BO G A LUSA , LO U IS IA NA G EN ERA L FU N D
STATEM ENT O F R EV EN U ES , EXPEN D ITU R ES , A N D C HA NG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31, 2000
variance- Favorable
.Budget A ctua ~[J nfavoE~ble3 Public w orks: Central service: Salaries and wages 784,000 770,096 13,904 Contract overtim e 1,200 1,004 196 O vertim e 50,000 53,007 (3,007) G roup insurance 115,000 121,258 (6,258) AIIow ance-rainsuits 2,590 2,602 (12) Supplies 15,840 28,667 {12,827) Travel 1,800 1,174 626 G as and oil 12,000 19,607 (7,607) Repairs to equipm ent 9,000 16,834 (7,834) Pest control m aterials 6,000 4,314 1,686 C assidy Park expenses 3,150 3,694 (544) M aintenance of ballparks 4,500 6,024 (1,524) Cem etery-tem porary 25,000 17,566 7,434 U niform expense 30,000 30,592 (592)
Cem etery m aintenance m aterials _ 9,653 (&153)
Total central service _ 1_,~ 58_0 1,086,092 [18~612)
M otor pool: Salaries and w ages 104,600 107,713 (3,113) O vertim e 6,000 6,666 (666) G eneral 4,000 3,601 399 Adm inistration 1,500 1,792 (292) Police 45,000 19,360 25,640 Fire 3,000 2,312 688 Public w orks 116,000 16,174 98,826 G roup insurance 14,390 17,888 (3,498) Tools and equipm ent 7,500 6,829 671 Supplies 5,000 13,391 (8,391) G as and oil 8,500 10,533 (2,033) A llow ance rainsuits 420 35o 7O Licenses 150 33 117 Total m otor pool 315.060 206.642 108,418
(Continued) See accom panying auditor's report Page 61
C ITY O F BO G ALU SA , LO UISIANA G EN ERAL FU N [)
STATEM ENT O F REV ENUES, EXPENDITU RES, AND CHANG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31,2000
Variance- Favorable
Budqet. Actua .(JJ.n f#vorable) Public works (cont'd): Electrical: Salaries and wages 56,550 56,293 257 O vertim e 1,000 1,000 G roup insurance 6,410 5.717 693 Tools and equipm ent 270 270 Supplies 460 3,201 (2,751) 130 C~othing allow ance _ ~ 390 _ 260 Total electrical ~ 70 6~47~i _ (401) ] otal public w orks 1,447~ 71q ~ 3582 05 _ _ 89,505
Pension contributions: City Em ployees Retirem ent System 147,180 134.136 13,044 Fire Pension-2% insurance 13,040 13,040 Police Pension-fines and licenses 17,000 10,833 6,167 State Firem en's Pension 110,470 227,964 (t17,494) State Policem en's Pension 119,140 113,920 5,220
M ayor's State Retirem ent . 4,761 ~4,761)
] otal pension contributions 406,830 _ 49!,614 ~ 784)
Recreation Director salary 10.420 10,420 Salaries and w ages 5,600 (5,600 "1 em porary workers 10,790 1,000 9,790 4,471 Supplies _ . ~ 0p 29 "1 otal recreation 25~710 17.049 8.661
Capital outlay:
C apital outlay _ _ _ 5 0,000 5~ 000 50.000 "fotal capital outlay _ . 50,00p
Debt service: Principal retirem ent 134,510 11,138 123,372 Interest and fiscal charges 1 533 (~533)
-[otal debt service 134 510 12,671 _ 121,839
Total expenditures ~ 449,17g _ Z,222,04Z 221 123
(Continued) See accom panying auditor's report Page 62
C iTY O F BO G ALU SA , LO UISIANA G EN ERA L FU N D
STATEM ENT O F REV ENUES, EXPENDITURES, AND C HANG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31,2000
Variance- Favorable
Budget_ Actua (UnfavoEab!e) Excess (deficiency) of revenues over expenditures ~. 1,911L350) ~~1 ,-Z787.3_.26) $_ 124.024 Other financing sources (uses) Operating transfers in (out)- O perating transfers in 2,169,640 1,928,867 (240,773) Operating transfers (out) (300,970) (60,000) 240,970 Fourth W ard M arshall (6,320) (6,272) 48
C ity Court salary and fringe benefits _ (80.460) _ . ~ 74,381) _ _ . 64079 1 ~788,214 Total other financing sources (uses) _ J,781,8_90 .. _ _ 6,324 Excess (deficiency) of revenues and other sources over expenditures and other uses (129,460) 888 130,348 Fund balance, beginning 249.180 ~ 1Z5 _ (5) Fund balance, ending ~~ 119,7.20 _.~.~250~063 ~. !30~343
(Concluded)
See accom panying auditor's report Page 63 SPE C IA L R E VE N U E F U N D S
ndustrial Com plex Sales Tax - To account for the receipt of a ~ cent sales tax
dedicated to im proving and/or m aintaining the C ity's Industrial Park. The tax expires February 1, 2923.
Em ployee Pay R aise Sales Tax - 1-o account for the receipt of a V2 cent sales and use tax. -[he proceeds are dedicated to the purpose of paying salaries and benefits of C ity em ployees. The tax is for an indefinite period.
Street Im provem ent Sales Tax - To account for the receipt of 25% of a one cent
sales and use tax. The proceeds are dedicated to street and drainage repair, m aintenance, operation and additions. The tax expires June 1, 2002.
Capital Im provem ent Sales Tax - To account for the receipt of 15% of a one cent
sales and use tax. The proceeds are dedicated to the acquisition, operation, and m aintenance of land, buildings, and equipm ent. The tax expires June 1. 2002.
ndustrial C om plex R ent/Lease - To account for the receipt of rent from the
Industrial Park. Expenditures are not legally restricted for any certain purpose.
Parks and Recreation Com m ission - To account for the receipt and expenditures of the C ity of Bogalusa Parks and Recreation Com m ission's funds. The com m ission is m ade up of seventeen people appointed by the M ayor w ith the approval of the Council. Expenditures are made with the approval of a majority of the com m ission.
A irport M aintenance and Im provem ent - This fund w as established by the M ayor to separately account for airport operations.
Senior Citizens Program s - To account for the receipt of 50% of a 4-m i~l ad va~o~em
tax for 10 years be9inning w ith the year 2000. The tax is dedicated for acquiring, constructing, im proving, operating and m aintaining senior citizens program s.
Recreation and Parks - To account for the receipt of 50% of a 4-m ill ad valorem tax
for 10 years beginning w ith the year 2000. The tax is dedicated for acquiring, constructing, im proving, operating and m aintaining parks and recreation facilities.
Landfill - To account for the receipt and expenditures of (1) a 5-m ill ad valorem tax
for the ten year period beginning in 1992 and ending w ith the year 2001. [he
tax proceeds are dedicated to constructing, acquiring, im proving, m aintainin9 and/or operating landfill facilities for the city, including the acquisition of land therefore. This fund also accounts for the C ity's investm ent in operations of the Choctaw Road Landfill, a joint venture with the W ashington Parish Government.
Page 64
'~ tO 6 ~
e~
~ LS ~
fn
CO r" ~ OJ' 0 r"
I~1
O~ O:) 0 0~ 0~
U)
4 " ~ E I-"
e~
O CO 0~ Page 65
L~ I
J I'1 A 5 ~ J~ I
I Page 66
C ITY O F BO G ALUSA , LO UISIA NA SPEC IA L R EV EN UE FU N D NDUSTRIA L CO M PLEX SA LES TAX
STATEM ENT O F REVENU ES, EXPENDITURES, A ND C HA NG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31. 2000
Variance - Favorable Budge[_ Actua (Unfavo[able) Revenues: Taxes - Sales taxes $ 481,310 $ 465,336 $ (15,974) Sales tax-penalty & interest 636 636 M iscellaneous - Interest 120~000 166~274 4 6,274 Total revenues 601,310 632,246 30 936
Expenditures: C urrent: G eneral governm ent - Sales tax collection expense 7.220 6.550 670 Econom ic developm ent- M aintenance of Industrial Park 35.190 42,429 (7,239) Insurance expense 25,540 (25,540)
C apital outlay 15o~0o _ _ 104,375 45,625
Total expenditures 192,410 1_78,894 _ 13~516
Excess (deficiency) of revenues over expenditures 408,900 453,352 44,452
Fund balance, beginning 2.785.910 2,785,913 _ _ 3
Fund balance, ending 3,239 265 _$_ 3~194~ 810 $. _ ~ } ~ 4,452
See accom panying auditor's report
Page 67
C ITY O F BO GA LUSA , LO UISIA NA SPEC IA L R EV EN U E FU N D EM PLOY EE PAY RAISE SALES TAX
STATEM ENT O F R EV EN U ES , EXPEN D ITU R ES, A N D C HA NG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31. 2000
V ariance - Favorable
Budget . Actua (_Urfavorab!e) Revenues: Taxes - Sales taxes $ 962,620 $ 931,231 $ (31,389) Sales tax-penalty and interest 1.273 1 2 73 M iscellaneous -
Interest 3,20. 0 _ ~ 4 ,595 _ 1 ,395
Total revenues 965 820 _ 937,099 _ (28,721)
Expenditures: C urrent: G eneral governm ent-
Sales tax collection expense _ 14,440 13.106 _ . ! ,3__34
Total expenditures _ _ 14,44_ 0 13.106 _ . 1,334
Excess (deficiency) of revenues
over expenditures 951 ,3_ 80 923.993 _ (2~ 387)
Other financing sources (uses) Operating transfer in (out): Operating transfer(out) J~9_69,41Q) _(~)01,332) _ 88,078 Total other financing sources (uses) (969,410) _~901,323) _ 6~ 078 Excess (deficiency) of revenues and other financing sources over expenditures and other uses (18,030) 22,661 40,691
Fund balance, beginning _ . 43,030 43.026 (4) Fund balance, ending ~ 25,000 ~ 65,687 ,$ 40,687
See accom panying auditor's report
Page 68
C ITY O F BO G A LUSA , LO UISIA NA SPEC IA L R EV EN U E FUN D STR EET IM PR O V EM ENT SA LES TA X
STATEM ENT O F R EV EN U ES , EX PEN D ITU RES, A N D C HA NG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31, 2000
V ariance - Favorable
B_ .udqet Actua (p.n..fa_v9 ra b!e) Revenues: Taxes - Sales taxes $ 481,3t0 $ 463,043 $ (18,267) Sa~es tax-penalty and interest 2.929 2.929 M iscellaneous -
Interest 13.000 14,34_ 0 _ ~ 340 48 Total revenues 494,3t0 _ 0. ,312 _ ~ 998)
Expenditures: C urrent: G eneral governm ent- Sales tax collection expense 8,500 6,549 H ighw ays, streets, & sanitation 200,000 291,162
Capital outlay 5Q~000 _ _ 76,836 Total expenditures 25B~500 374.547
Excess (deficiency) of revenues
over expenditures 23_ 5~810 105.765 (!.30,045)
Other financing sources (uses)
Operating transfer(out) _ ~200,000.) ~ 200~000 Total other financing
sources (uses) _ (200,0@ ) _ ._ - 200~000 Excess (deficiency) of revenues and other financing sources over expenditures and other uses 35,810 105,765 69,955
Fund balance, beginning 308,36_0 308.356 (4)
Fund balance, ending ,~ _4A 70 ~A 14~121 $ 69,951
See accom panying auditor's report
Page 69
C ITY O F BO G ALUSA , LO UISIANA S PEC IA L R EV E N U E FU N D CA PITA L IM PRO VEM ENT SA LES TAX
S'I-A TEM ENT O F R EV EN U ES , EX PEN D ITU R ES , A N D C HA NG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31, 2000
Variance - Favorable
_Bu_dg e t Actual (Unfavorable) Revenues: Taxes - Sales taxes $ 288,890 $ 279,314 $ (9,576) Sales tax-penalty and interest 382 382 M iscellaneous - Interest 2~500 2 ,ZS_Z 287
Total revenues 291,390 _ 282,483 _ .(8,907)
Expenditures: C urrent: G eneral governm ent - Equipm ent and building m aintenance 34.530 74,106 (39,576) Sales tax collection expense 3,931 (3,931) Capital outlay 309,100 307,295 1,805 D ebt service 85.411 51219 Total expenditures 434,260 470,743 (36,483) Excess (deficiency) of revenues over expenditures (14~28870) (188,260) _ 12 390) Other financing sources (uses): C apital lease financing proceeds 184,100 184.104 4
Operating transfer(out) _ _ 175,000) 75.000 Total other financing
sources (uses) 109,100 _ ~ 184~ 104 _ _ 75,004 Excess (deficiency) of revenues and other financing sources over expenditures and other uses (33,770) (4,156) 29,614 Fund balance, beginning 33,770 33.765 (5)
Fund balance, ending 0 $ - $ 29,6_ 9 ~ 29,609
See accom panying auditor's report
Page 70
C ITY O F BO GA LUSA , LO UISIA NA S PEC IA L R EV EN U E FU N D N D USTR IA L CO M PLEX R ENT/LEA SE
STATEM ENT O F R EV EN U ES, EXPEN D ITU R ES , A N D C HA NG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31. 2000
Variance- Favorable
_Bud9 et Act u a I (_Un_fayorable) Revenues: M iscellaneous - Interest $ 4,000 $ 4,334 $ 334 Rent _ _?08,000 195,096 _ (!2,904) Total revenues 212~0Q0 _ _ !99,430 _ (12,570)
Expenditures: C urrent: Econom ic developm ent - Econom ic developm ent 202.000 176,394 25,606
C apital outlay 38.418 _ (~8j~!8) Total expenditures 202~00Q 214,812
Excess (deficiency) of revenues over expenditures 10,000 (15,382) (25,382)
Other financing sources(uses) Operating transfers (out) (10,000) _ (10,000) Total other financing
sources(uses) _ (10,00o) _JHP,OPP) Excess (deficiency) of revenues and other financing sources over expenditures and other uses (25,382) (25,382)
Fund balance, beginning 227,9. 60 227,956 ('!)
Fund balance, ending .$ 227,960 20 ~_ =_ .. ..2~57_~ .~ (251386)
See accom panying auditor's report
Page 71
C ITY O F BO G A LU SA , LO U IS IA NA S P EC IA L R EV EN U E FU N D PA RKS A ND R EC R EATIO N CO M M ISSIO N
STATEM EN-[ O F REVEN UES, EXPENDITURES, A ND C HANG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31. 2000
Variance- Favorable
Budget A_ ct u.al (U nfa_vQ(ab!e) Revenues: M iscellaneous - R ent $ 3,200 $ 3,500 300 Interest 200 579 379
Total revenues 3.400 _ _ _ 4~QZ@ 679
Expenditures: C urrent: C ulture and recreation 3,400 7.346 (3,946)
Total expenditures _ 3,400 7.346 (3~946) Excess (deficiency) of revenues over expenditures (3,267) (3,267)
Fund balance, beginning 13.940 _ _ _ !-3~942 _
Fund balance, ending ~_ _ 13,940 ~ 10~6_75 ~ 265)
See accom panying auditor's report
Page 72
CI-rY O F BO G A LUSA, LO UISIANA S PEC IA L R EV EN U E FU N D A IRPO RT M A INTENA NCE A ND IM PRO VEM EN'[
STATEM ENT O F R EV EN U ES , EX PEN D ITU R ES, A N D C HA NG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31. 2000
Variance- Favorable
B u dg e'( .A ctua I (Unfavorable) Revenues: M iscellaneous- Rent $ 1,200 100 Interest 1,281
O ther 5~oo 0 . 134 Total revenues 6.200 1.515
Expenditures: C urrent: G eneral governm ent - G eneral governm ent 68,000 62.893 5,107 C apital outlay 5.000 51000
Total expenditures 73.000 62,8_9. .3 _ 10,107
Excess (deficiency) of revenues
over expenditures _ .(66,800) _ (,55,178) 11.622 Other financing sources (uses) Operating transfers in (out) -
G eneral Fund _ _ 61,410 60,0_ 0_0 _ (! ,4!0) Total other financing sources (uses) 61.410 60.000 (!,4.!0) Excess (deficiency) of revenues and other financing sources over expenditures and other uses (5,390) 4,822 10,212
Fund balance, beginning _ _ 5,240 5.245 5
Fund balance, ending $ (159) .~_.!0~067 ~_ 10~217
See accom panying auditor's report Page 73
C ITY O F BO GALUSA , LO UISIA NA S P EC IA L R EV EN U E FU N D SEN IO R C ITIZEN S PR O G RAM S
STA-rEM ENT O F R EV EN U ES , EXPEN D ITU R ES , A N D C HA NG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31. 2000
Variance- Favorable Budget A ctual (Unfavorable) Revenues: Taxes - Ad V alorem $ 79,840 $ 83,456 $ 3,616 M iscellaneous - Interest 12 12 Total revenues 79.840 83.468 3,628
Expenditures: C urrent: C ulture and recreation Total expenditures
Excess (deficiency) of revenues over expenditures 79,840 83,468 3,628
Fund balance, beginning
Fund balance, ending ~ 79,8_4..0 ~ 83,468 $ 3~6~2
See accom panying auditor's report Page 74
C ITY O F BO GA LUSA , LO UISIA NA S PEC IA L R EV EN U E FU N D REC REATIO N A ND PA RKS
STATEM ENT O F R EV EN U ES, EXPEN D ITU R ES, A N D C HA NG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31. 2000
Variance- Favorable
_B u_ d__ get_ A ctual (.U&favorable) Revenues: Taxes - Ad V alorem $ 79,840 $ 83,456 $ 3,616 M iscellaneous - Interest 12
Totalrevenues ~ 79,84 0. 83.468 3,628
Expenditures: C urrent: C ulture and recreation 998 (9_9._8) Total expenditures 998 (998)
Excess (deficiency) of revenues over expenditures 79,840 82,470 2,630
Fund balance, beginning
Fund balance, ending _~ 79,840 ~ ~82470 ~ 2~630
See accom panying auditor's report Page 75
C ITY O F BO GA LUSA , LO UISIA NA S P EC IA L R EV EN U E FU N D LA N D FILL
STATEM ENT O F REVENUES, EXPENDITURES, A ND C HA NG ES IN FUND BALANCE - BUDG ET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31, 2000
Variance- Favorable
B u..d~ get Actua (Unfavorab]#) R evenues: Taxes - A d valorem taxes $ 199,560 $ 208,049 $ 8,489 Joint venture incom e 100.000 (100,000) M iscellaneous - Interest 1 ~ 5J6 1 1,516
Total revenues 301,560 221.565 _ __~79,995)
Expenditures: C urrent: H ighw ays, streets and sanitation - Landfill 270,000 13,361 256,639
Total expenditures _ .270,000 13.361 _ 256,639
Excess (deficiency) of revenues over expenditures 31.560 208~ 04 176.644
Other financing sources (uses) Choctaw Road Landfill joint
venture income (loss) _ .(158,186) ._(! 58., !.86) Total other financing
sources (uses) ~ (158.J 86) _ (158~186)
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 31,560 50,018 18,458
Fund balance (deficit), beginning . 325,450 _ 325,478 28 Fund balance (deficit), ending ~ 357,010 $ 375,496 ~~~.J_8L486
See accom panying auditor's report Page 76
D E BT S E R V IC E FU N D
G eneral O bligation Bond Sinking Fund - To accum ulate m onies for paym ent of the 1992 $1,000,000 Landfill Facilities Im provem ent bonds. 1998 $5,600,000 G eneral O bligations Sewer bonds
-[he bonds' debt service is financed by the levy of a specific ad valorem tax. Page 77
C ITY O F BO GA LUSA , LO UISIA NA D EBT S ERV IC E FU N D
BA LA NC E S H EET Decem ber31.2000
G eneral O bligation Bond Sinking Fund A SSETS: C ash $ 1,064,599 Receivables 143.753
TO TA L A SSETS ~ lj208,352
FU N D BA LA NC ES :
Reserved fordebtservice _$. !.20~8 352 TO TA L FU N D BA LA NC ES ~ 208,352
See accom panying auditor's report Page 78
C ITY O F BO G A LUSA , LO UISIA NA D EBT S ERV IC E FU N D
STATEM ENT O F R EV ENUES, EXPENDITURES, A ND C HA N G ES IN FU N D BA LA NC ES Year Ended Decem ber 31. 2000
G eneral O bligation Bond Sinking Fund R EV EN U ES : Taxes - ad valorem $ 434,445
Interest _ . 47.,764 Total revenues 482.209
EX PE N D ITU R ES : Principal retirem ent 270,000 Interest 205,333
A gent fees . 26,210 Total expenditures 501.543
Excess (deficiency) of revenues over expenditures (19,334)
Fund balance, beginning _ !~227,686
FU N D BA LA N C E. EN D ING ~1,20~ 352
See accom panying auditor's report Page 79
C A P ITA L P R O JEC TS FU N D S
Landfill Im provem ent - To account for the proceeds of $1,000,000 bond sale dedicated to construction and im provem ents of the C ity's landfill facilities.
A irport Expansion - To account for the receipt and expenditures of Federal Aviation G rants and State of Louisiana M atching G rants to expand the G eorge R . Cart M unicipal A irport apron, install perim eter fencing, and rehabilitate taxiw ay and existing apron and to im prove runw ay drainage. Page 80
C ITY O F BO GA LUSA , LO UISIA NA CA PITA L PRO JECTS FU N DS
CO M BIN IN G BA LA NC E SH EET Decem ber 31. 2000
Landfill A irport
_ Lm~orovem ent Expansion Tota A SSETS
C ash $ 66,424 $ 41,139 $ 167,563 A ccounts receivable 679,098 679,098 Due from other funds 375 375
Total assets 66,799 ~$__Z20~237 $, 787,03,6
LIA BILITIES A ND FU N D BA LA NC ES
Liabilities: Accounts payable $ 568,347 $ 568,347 Due to other funds 151.890 Total liabilities 720.237
Fund balances 66,799 66,799
Total liabilities and fund balances ~$ 66,799 ~=_J .2..g.~237 .$ 787L036
See accom panying auditor's report Page 81
C ITY O F BO GA LUSA , LO UISIA NA C A P ITA L P R O JEC TS FU N D S
CO M BIN ING STATEM ENT O F REVENUES, EXPEN DITURES A ND C HA NG ES IN FUND BA LANC ES Year ended Decem ber 31. 2000
Landfill A irport ~ 4orovement Expansion l-eta R evenues: Intergovernm ental - Federal grant $ $ 728,275 $ 728,275 G rant from State of Louisiana 85.911 85,911
Interest 1.664 _ 1,664 Total revenues 1.664 814.186 815.850
Expenditures:
Capital outlay _ 814,186 814,!66 Total expenditures 614,186 814.186
Excess (deficiency) of revenues over expenditures 1.664 1,664
Fund balance, beginning _ ._65 135 65t135 Fund balance, ending $ 66,799 _$ - $ 66-.,Z9~
See accom panying auditor's report Page 82
C ITY O F BO GA LUSA , LO UISIA NA CA PITA L PRO JECTS FU N D LA N D FILL IM PRO V EM ENT
STATEM ENT O F R EV EN U ES, EX PEN D ITU R ES , A N D C HA NG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31. 2000
Variance- Favorable
Budget . A ctua (U0faygr~ble)
R evenues: Interest ~L 1,664 664 Total revenues 1.000 1.664 664
Expenditures: C apital outlay -
Landfill construction 25.000 _ _ 25L000
Total expenditures 25.000 _ _ 2~ QO0
Excess (deficiency) of revenues over expenditures (24,000) 1.664 25,664
Fund balance, beginning 65.130 65.135 5
Fund balance, ending ~$ 41,130 $ 66,799 ~ . 25,669
See accom panying auditor's report Page 83
C ITY O F BO G A LUSA , LO U ISIA NA CA PITA L PRO JECTS FU N D A IR PO RT EX PA N SIO N
STATEM ENT O F R EVENUES, EXPEND ITUR ES, A ND C HANG ES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL Year Ended Decem ber 31. 2000
V ariance - Favorable Budget A ctua (Unfavorable)
R evenues: Intergovernm ental - Federal grant $ 263,370 $ 728,275 $ 464,905
State of Louisiana _ _ 29,270 _ 56,64 1 Total revenues 292,640 814,186 521.546
Expenditures: C apital outlay - C ontract costs 231,860 618,838 Engineering fees 29,600 193,482 O ther 31~180 Total expenditures 292.640 814.186
Excess (deficiency) of revenues over expenditures
Fund balance, beginning
Fund balance, ending L + - $ - _$_ -
See accom panying auditor's report Page 84
EN TE R P R ISE FUN D
UTILITY FU N DS -
O perating Fund - To account for the day-to-day operations of the utility system
W astew ater Im provem ent Fund - To account for the receipts and disbursem ents of the 1998 and 1999 Sew er Bonds used for sewer im provem ent.
W ater and Sew er Sales Tax Fund - To account for the receipt of 15% of a one cent sales and use tax. T he proceeds are dedicated to w ater and sew er repair, m aintenance, operation and additions. The tax expires June 1,2002.
Utility D ebt Service Fund - Funds are accum ulated in this account to service the debt on the 1998 Sewer Sales Tax Bonds and the 1997 certificates of indebtedness.
W ater System Im provem ent Fund - This fund accounted for a ~ cent sales tax dedicated to constructing, acquiring and/or im proving the C ity's w astew ater system . This tax expired in 1998 and a new ~ cent sales tax w as approved w hich is being accounted for in the operating fund. Page 85
(,o
co o~ c-~ c~ Lo oo c~
cx~ u~ Page 86
0 o3 ~0 O eO CO I.o eO e')
S c~
O cO ~ O eo oc LO eO c< 0"] ~r~ O" e,t ~0 ~c Page 87 Page 88
FID U C IA R Y FU N D S
Firem en's Pension and Relief - [o account for funds received from ad valorem tax revenue and from contributions from the genera] fund w hich are subsequently disbursed to beneficiaries of these pension funds. The contributions from the general fund are m ade in am ounts necessary to fund current benefits payable only.
Policem en's Pension and Relief - To account for funds received from ad valorem tax revenue and from contributions from the general fund w hich are subsequently disbursed to beneficiaries of these pension funds. -[he contributions from the general fund are m ade in am ounts necessary to fund current benefits payable only.
C ity Em ployees Retirem ent System - To account for the accum ulation of resources to be used for retirem ent annuity paym ents at appropriate am ounts and tim es in the future. Resources are contributed by em ployees at am ounts fixed by law and by the C ity at am ounts determ ined as a percentage of ad valorem tax revenues w hich are also fixed by law . Note: This fund is presented at its year end - June 30, 1998. A ll other funds and account groups presented in these financial statem ents have a Decem ber 31, 1998 year end. Page 89
C ITY O F BO G A LU SA , LO U ISIA NA FID U C IA RY FU N D S
STATEM ENT O F PLAN NET A SSETS Decem ber31.2000
Firem en's Policem en's City Pension and Pension and Em ployees' Relief Relief Retirem ent
Fund Fund _ SS ystem Total A SSETS
nvestm ents, at fair m arket value: Equity m utual fund U . S. G overnm ent obligations $ $ $ 6,192,739 $ 6,192,739
C om m on stock 1~,~Q.1,579 . 1,401,579
_ ~7,594,318 _ Z,59~4 318
Receivables Em ployer 12,956 12,956 Interest 71 256 71.256 84 212 84.2~?
C ash 283j003 283.003
TO TAL ASSETS - _ 2 ,961,533 _ ~ 961.533
LIA BILITIES
W ithholding payable 340 340 TO TA L LIABILITIES 340 340
N ET A SSETS AVA ILABLE FO R BENEFITS .$ ~ $ - ~_$ 7961,193 ~7~96%'193
See accom panying auditor's report Page 90
C ITY O F BO G A LUSA , LO U ISIANA FtD U C IARY FU N DS
STATEM ENT O F C HA NG ES IN PLAN NET ASSETS Year Ended Decem ber 31,2000
Firem en's Policem en's City Pension and Pension and Em ployees Relief Relief Retirem ent System T ota Fund _ F+und ADDITIO NS TO NET ASSETS
nvestm ent incom e Net appreciation in fair value of investm ent $ $ 26,022 $ 28,022 393,705 Interest and dividends 8.543 J.Z ~05 _ _ _ 41%353 8.543 17.105 421.727 447.376
Contributions: 8,479 Court fines 8+479 2,157 Beer and liquor license 2.157 City of Bogatusa 198,591 198,591 108,311 Plan m em bers _ _ _ ~08,311 10.636 306,902 317 538 "tOTAL ADDITIO NS TO NET ASSETS ~8 543 27.741 728.629 764 913
D ED UCTIO NS FRO M NET ASSETS 319,779 Benefits 94,061 49,767 475,951 Refunds of contributions 14,760 14,760 15,435 Adm inistrative expense 2,032 491 12.912 Uncollected ad valorem taxes 2,239 2,768 5,007 Paym ents to state 490.736 retirem ent system s 146.347 344,389 Transfer to City of Bogalusa 25,944 retirem ent account 25.944 Drop w ithdrawals 7,200 Z,200
TOTAL DEDUCTIO NS FROM NET ASSETS 244.679 __ 423,359 ~ 823 _ 1j178,B61 NET INCREASE(DECREASE) (236,136) (395,6t8) 217,806 (413,948)
NET ASSETS HELD IN TRUST FO R PENSIO N BENEFITS: 8 375,1:41 Beginning of year 236~136 395,618 _ ~ 7,743~387 _ ~ ENDOFYEAR $ - .~ - ~ 7,961L1-9+3- ~_---Z-,~~ )3~
See accom panying auditor's report Page 91
A U D IT R EP O R TS R E Q U IR ED B Y TH E SIN G LE A UD IT A C T Page 92 RIC HA RD M . SEA L C ERIlFIED PU BLIC A C C O UN TA N T o C ERTIFIED G O V ERN M EN T FIN A N C IA L M A N A G ER
N D EPEN D ENT A U D ITO R 'S R EPO RT O N CO M PLIA NC E W ITH REQ U IREM ENTS A PPLICA BLE TO EAC H M AJO R PRO G RAM A N D INTER NA L C O NTRO L O V ER C O M PLIA NC E IN
A_ CCp RDA_N_C E W ITH O_M_B CI_RQULAR A-133
The Honorable J. M . "M ack" M cG ehee, M ayor and M em bers of the City C ouncil C ity of Bogalusa, Louisiana
C_ ~n~ liaqce
I have audited the com pliance of C ity of Bogalusa w ith the types of com pliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplem ent that are applicable to each of its major federal program s for the year ended Decem ber 31,2000. City of Bogalusa's m ajor federal program s are identified in the sum m ary of auditor's results section of the accom panying schedule of findings and questioned costs. Com pliance w ith the requirem ents of law s, regulations, contracts and grants applicable to each of its m ajor federal programs is the responsibility of City of Bogalusa's m anagement. My responsibility is to express an opinion on C ity of Bogalusa's com pliance based on m y audit.
I conducted m y audit of com pliance in accordance w ith generally accepted auditing standards; the standards applicable to financial audits in G overn m ent A udit#rg Standards, issued by the Com ptroller G eneral of the United States; and O M B C ircular A- 133, A udits of States, Local G overn m ents, and Non-Plofit O rganizations. Those standards and O M B C ircular A-133 require that I plan and perform the audit to obtain reasonable assurance about w hether noncom pliance w ith the types of com pliance requirem ents referred to above that could have a direct and m aterial effect on a major federal program occurred. An audit includes exam ining, on a test basis, evidence about City of Bogalusa's com pliance w ith those requirem ents and perform ing such other procedures as I considered necessary in the circum stances. I believe that m y audit provides a reasonable basis for m y opinion. M y audit does not provide a legal determ ination on C ity of Bogalusa's com pliance w ith those requirem ents.
PO SI O FFIC E BO X 128 o BO G ALUSA, LO UISIANA 70429-0|28 o (504) 732-2536 o FAX (504) 732-2537 Page 93
In m y opinion, C ity of Bogalusa com plied, in all m aterial respects, w ith the requirements referred to above that are applicable to each of its major federal program s for the year ended Decem ber 31, 2000.
nternal Control O ver C om pliance
The m anagem ent of C ity of Bogalusa is responsible for establishing and m aintaining effective internal control over com pliance with requirem ents of laws, regulations, contracts, and grants applicable to federal program s. In planning and perform ing m y audit, I considered C ity of Bogalusa's internal control over com pliance w ith requirem ents that could have a direct and m aterial efect on a major federal program in order to determine my auditing procedures for the purpose of expressing m y opinion on com pliance and to test and report on internal control over com pliance in accordance w ith O M B C ircular A-133.
M y consideration of the internal control over com pliance w ould not necessarily disclose all m atters in the internal control that m ight be m aterial w eaknesses. A m aterial weakness is a condition in w hich the design or operation of one or m ore of the internal control com ponents does not reduce to a relatively low level the risk that noncom pliance w ith applicable requirem ents of law s, regulations, contracts, and grants that would be m aterial in relation to a m ajor federal program being audited m ay occur and not be detected w ithin a tim ely period by em ployees in the norm al course of perform ing their assigned functions. I noted no m atters involving the internal control over com pliance and its operation that I consider to be m aterial w eaknesses.
This report is intended for the inform ation of the M ayor, C ity Council, and the office of the Louisiana Legislative A uditor. How ever, this report is a m atter of public record and its distribution is not lim ited.
Certified Public Accountant
Bogalusa, Louisiana June 27. 2001 Page 94
C ITY O F BO G ALU SA . LO UISIANA
SCH ED ULE O F EXPENDITURES O F: FEDERAL AW A RDS For the Year Ended D ecem ber 31. 2000
FEDERA L G RA NTO R PASS-THRO UG H G RA NTO R C FDA PRO G RA M NA M E NUM BER EXPENDITURES
_D_epartm ent of Agriculture
Passed throuah Louisiana Departm e of Education
G overnor's Safe & Drug Free Schools 84.186A _ _ 19,508
Total U nited States D epartm ent of A griculture 10,508
Dgpartm ent of Transportation
Passed throug h Louisiana D~ joartm ent of Aviation
A irport Im provem ent 20.106 814,!86 814.186
Passed through Louisiana H ighw &y Safety C om m ission
C rash Data G rant 20.600 2,185 G overnor's Safe and Sober G rant 20.601 6L681
_ _ _ 8,866
Total Departm ent of Transportation 823L052
(Continued) See accom panying notes to schedule of expenditures of federal awards Page 95
C ITY O F BO G A LUSA , LO UISIA NA
SC H ED U LE O F EXPEN D ITU R ES O F FED ERA L AW A R D S For the Year Ended Decem ber 31. 2000
FED ERA L G RA NTO R PASS-TH RO UG H G RA NTO R C FDA
PRO G RA M NAM E . NUM BER EXPENDITURES
Departm ent of Justice
Direct Program s
CO PS Fast 16.710 $ 14,508 CO PS M ore 16.710 17,325
Local Law Enforcem ent Block G rant 16.592 _ _ 17,147
Total D irect Program s 48.980
Passed throueh Louisiana C aoital D istrict Law Enforcem ent Piannina Council. Inc
LC LE 16.710 Integrated C rim inal A pprehension P rogram 16.579 Hom e Detention Program 16.540 Violence A gainst W om en 16.588 Narcotics Response Team 16.579
Total Departm ent of Justice 87,231
Environm ental Protection Agency
Passed through Louisiana D epartm ent of Environm ental Q u
Revolving Loan Fund 66.458 ~2 206.168
Total Environm ental P rotection A gency ~ 206,168
(Continued) See accom panying notes to schedule of expenditures of federal aw ards Page 96
C ITY O F BO G ALUSA . LO UISIA NA
SC H ED U LE O F EX PEN D ITUR ES O F FED ERA L A W A R DS For the Year Ended Decem ber 31. 2000
FE D ERA L G RA NTO R PA SS-THRO UG H G RA NTO R C FDA PRO G RA M NA M E N UM BER EXPEN D ITU R ES
Passed through Louisiana Division of Adm inistration D ivision of A dm inistration
LA Com m unity Developm ent Block G rant 14.219 9.700
Total Division of Adm inistration _ _ 9,700
N ational Park Service
Passed throuah Departm ent of C ulture Recreation & Tourism
Bogalusa Avenue B Ballpark 15.916 74.714
Total National Park Service 74,714
TO TA L EXPEN D ITU R ES k~ 220,3Z3
(Concluded)
See accom panying notes to schedule of expenditures of federal aw ards Page 97
C ITY O F BO GA LUSA . LO UISIA NA
N O TES TO SC H ED U LE O F EX PEN D ITU R ES O F FED ERA L AW A R DS For the Year Ended Decem ber 31. 2000
NO TE A- BA SIS O F PRESENTATIO N
The accom panying schedule of expenditures of federal aw ards includes the federal grant activity of the City of Bogalusa, Louisiana and is presented on the m odified accrual basis of accounting. The inform ation in this schedule is presented in accordance w ith the requirem ents of O M B A -133, A udits of States, Local G overn m ents, and N on-Profit Organizations. Page 98
C ITY O F BO G A LUSA . LO U ISIA NA
SC H EDU LE O F FINDING S Year Ended Decem ber 31. 2000
Section I- S um m ary of A uditor's Results
Fh~ancial Statem ents
1. T he auditor's report expresses an unqualified opinion on the general-purpose financial statem ents of the C ity of Bogalusa.
2. There were no reportable conditions relating to the audit of the financia statem ents of the C ity of Boga~usa noted during the audit.
3. There w ere no instances of noncom pliance m aterial to the financial statem ents of the C ity of Bogalusa noted during the audit.
Federal A w ards
1. There were no reportable conditions relating to the audit of the major federa aw ard program s.
2. The auditor's report on compliance for the major federal award programs for the C ity of Bogalusa expresses an unqualified opinion.
3. There are no audit findings that are required to be reported in accordance w ith Circular A- 133, Section .510(a). Identification of major program s
Nam e of Passed-Through C FDA Num ber G rantor/Federal Proqram
20.106 Louisiana Departm ent of Aviation/ A irport Im provem ent 66.458 Louisiana Departm ent of Environm enta Q uality/Revolving Loan Fund
5. The threshold for distinguishing m ajor program s was $300,000
(Continued) See accom panying auditor's report Page 99
C ITY O F BO GALU SA . LO UISIANA
SC HED ULE O F FINDING S Year Ended Decem ber 31, 2000
Section II- Financial Statem ent Findings
No m atters w ere reported
Section Ill- Federal Aw ard Findings and Q uestioned C osts
No m atters w ere reported
(Concluded)
See accom panying auditor's report Page 100
C ITY O F BO GA LUSA . LO UISIA NA
SC H ED U LE O F PR IO R-Y EA R FIN D ING S For the Year Ended Decem ber 31. 2000
Section I Internal C ontrol and Com pliance M aterial to the Financial Statem ents [here w ere no prior year findings. Section II Internal Control and Com pliance M aterial to Federal Aw ards There were no prior year findings. Section III M anagem ent Letter 99-1 The C ity of Bogalusa did not Resolved, m ake the m onthly 5% transfer to a "contingency fund" required by a bond indenture 99-2 The C ity of Bogalusa did not Not resolved. See m anagem ent letter m ake the set dollar transfer to a 00-1. However seem s to be resolved sinking fund reserves required by a in 2001. bond indenture. 99-3 The City did not advertise for Resolved. bids for a purchase over $15,000. 99-4 The City did not advertise for Resolved. bids for m aterials and supplies purchased during the year in partial lots that am ounted to over $15,000 at the end of the year. 99-5 The C ity did not docum ent that Resolved. the budget w as available for public inspection, and a sum m ary of the budget w as not published 10 days prior to the date of the first public hearing. 99-6 The budget w as not am ended Not resolved. See m anagem ent letter w hen actual expenditures exceeded 00-2. budgeted expenditures by m ore than 5% and w hen actual revenues fell below budgeted revenues by m ore than 5% Page 101
CITY O F BO GA LUSA . LO UISIA NA
SC H ED U LE O F PR IO R-Y EA R FIN D ING S For the Year Ended D ecem ber 31,2000
Section III M anagem ent Letter (cont'd) 99-7 The C ity did not publish the Partially resolved. See m anagem ent council m eeting m inutes in the official letter 00-3. journal RIC HA RD M , SEA L L .~::,::~ _ CERTIFIED PUBLIC ACCOUNTANT o CERTIFIED GOVERN~ N,]~,FINAN~IA'~T~'[ANAGER ,,UL -2 41"/ 9:0 5
To the Honorable J.M . "M ack" M cG ehee, M ayor and the M em bers of the C ity Council City of Bogalusa, Louisiana
I have audited the general-purpose financial statements of the City of Bogalusa (the City) as of and for the year ended Decem ber 31,2000, and have issued m y report therein dated June 27, 2001. A s part of the financial statem ent, I also issued reports dated June 27, 2001 on the C ity's internal control and com pliance w ith certain provisions of law s, regulations, contracts, and grants.
I noted no m atters involving m aterial w eaknesses in internal control and no instances of m aterial noncom pliance; however, I did note certain m atters that I thought should be brought to your attention.
- 1 BO ND INDENTURE REQ UIREM ENTS
The City has bond issues that require a transfer of a set dollar am ount m onthly into a sinking fund and reserve fund and reserve fund for the paym ent of interest and principal on the outstanding bonds. During the year, the C ity did not transfer the specific required am ounts on a m onthly basis. I recom m end that the City com ply precisely w ith the bond instrum ents.
00-2 LO UISIA NA B U D G ET A C T
M y testing of com pliance w ith the Louisiana Budget Act revealed the follow ing
A . The budget w as not am ended w hen actual expenditures and other uses exceeded am ounts budgeted by m ore than 5% for the:
1. Industrial Park Rent/Lease Fund 2. Parks and Recreation C om m ission
PO SI O FFIC E BO X 128 o BO G A LUSA, LO UISIANA 70429-0|28 o (504) 732-2536 o FAX (504) 732-2537 00-3 PUBLIC M EETING LAW
M inutes of com m ittee m eetings w ere not taken during the year 2000 as required by R .S+ 42:2. The public m eeting law should be com plied w ith.
This report is intended for the inform ation of the M ayor, the City Council, and the office of the Louisiana Legislative A uditor. How ever, this report is a m atter of public record and its distribution is not lim ited.
Certified Public A ccountant
Bogalusa, Louisiana June 27. 2001