Lake Borgne Basin Levee District
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LAKE BORGNE BASIN LEVEE DISTRICT OFFICE OF THE GOVERNOR A COMPONENT UNIT OF THE STATE OF LOUISIANA FOR THE FISCAL YEAR ENDED JUNE 30,2007 Under provisions of state law, this report is a public document. A copy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court. Release Date /P/ /O TABLE OF CONTENTS EXHIBIT PAGE INDEPENDENT AUDITORS1 REPORT 1-2 MANAGEMENT'S DISCUSSION AND ANALYSIS - 3-8 BASIC FINANCIAL STATEMENTS: GOVERNMENTAL-WIDE FINANCIAL STATEMENTS (GWFS) Statement of Net Assets A 9 Statement of Activities B 10 FUND FINANCIAL STATEMENTS (FFS) Governmental Funds: Balance Sheet C 11 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets D 12 Statement of Revenues, Expenditures, and Changes in Fund Balances E 13 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities F 14 NOTES TO FINANCIAL STATEMENTS 15 -27 REQUIRED SUPPLEMENTARY INFORMATION Schedule Budgetary Comparison Schedule 1 28 Note to Budgetary Comparison Schedule 29 OTHER REPORT REQUIRED BY GOVERNMENT AUDITING STANDARDS Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 30-31 TABLE OF CONTENTS (continued) EXHIBIT PAGE SUPPLEMENTARY INFORMATION SCHEDULES Report on Compliance With Requirements Applicable to Each Major Program And Internal Control Over Compliance in Accordance With OMB Circular A-133 ,. 32 - 33 Schedule of Findings and Questioned Costs 34 Schedule of Prior Year Findings and Questioned Costs 35 Schedule Schedule of Expenditures of Federal Awards 2 36 OTHER SUPPLEMENTARY INFORMATION REQUIRED BY LOUISIANA LAW Financial Information Required by the Office of Statewide Reporting and Accounting Policy JAMES E. UPoftre* LLP. RlCHAflD G. MURLER ERICKSENKRENTEL & LAPORTE RONAIO H. DAWSOM, JR.* CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS KENNETH J, ABNEY* 4227 CANAL STREET W. ERIC POWERS NEW ORLEANS, LOUISIANA 70119-5996 DEHMS J. TIZZARD^ TELEPHONE (504) 486-7275 • FAX (504) 482-2516 JAWES L tOHGl£T WWW.ERICKSENKRENTEL.COM BENJAMIN J, ERICKSEN - RETIRED J.V. LeciERE KRENTEL - RETIRED INDEPENDENT AUDITORS' REPORT Lake Borgne Basin Levee District Violet, Louisiana We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Lake Borgne Basin Levee District (a component unit of the State of Louisiana) as of and for the year ended June 30,2007, which collectively comprise the District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of Lake Borgne Basin Levee District's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted hi the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Lake Borgne Basin Levee District, as of June 30, 2007, and the respective changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated August 27,2007, on our consideration of the Lake Borgne Basin Levee District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The management's discussion and analysis and budgetary comparison information on pages 3 through 8 and 28 through 29, are not a required part of the basic financial statements but are 1 ERICKSEN KRENTEL CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS Lake Borgne Basin Levee District August 27, 2007 Page 2 supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Lake Borgne Basin Levee District's basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements of Lake Borgne Basin Levee District. The schedule of expenditures of federal awards has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Our audit was performed for the purpose of expressing an opinion on the basic financial statements taken as a whole. All other accompanying financial information listed as other supplementary information required by Louisiana law, in the table of contents is presented to comply with the requirements issued by the State of Louisiana, and is not a required part of the financial statements of the Lake Borgne Basin Levee District. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. August 27,2007 <~ /^+ *fm* —t Certified Public Accountants STATE OF LOUISIANA LAKE BORGNE BASIN LEVEE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2007 The Management's Discussion and Analysis of the Lake Borgne Basin Levee District's financial performance presents a narrative overview and analysis of Lake Borgne Basin Levee District's financial activities for the year ended June 30, 2007. This document focuses on the current year's activities, resulting changes, and currently known facts in comparison with the prior year's information. Please read this document in conjunction with the additional information contained in the Lake Borgne Basin Levee District's financial statements, which begin on page 9. FINANCIAL HIGHLIGHTS * The Lake Borgne Basin Levee District's assets exceeded its liabilities at the close of fiscal year 2007 by $20,304,000 which represents a 4% increase from last fiscal year. * Capital assets net of depreciation totaled $15,833,000, an increase of $283,000, after considering depreciation of $766,000. * Current liabilities totaled $978,000, which represents an increase of $190,000 from prior year end. * Long-term bond debt outstanding amounted to $640,000, which represents a decrease of $625,000. Principal paid on the bond issue in the current year amounted to $600,000. * Revenues totaled $4,538,000 as compared to prior year of $3,728,000. This represents an increase of $810,000 from the prior year. Increase over prior year is primarily related to impact of Hurricane Katrina on prior years revenues. * Operating expenses totaled $3,788,000, which represents a $154,000 increase over prior year, primarily related to the impact of Hurricane Katrina. * Increase in net assets totaled $750,000. This represents a $656,000 increase from the prior year's change in net assets of $94,000. This increase is attributed to an increase in revenues as noted above. STATE OF LOUISIANA LAKE BORGNE BASIN LEVEE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) JUNE 30, 2007 OVERVIEW OF THE FINANCIAL STATEMENTS The following graphic illustrates the minimum requirements for Special Purpose Governments Engaged in Business-Type Activities established by Governmental Accounting Standards Board Statement 34, Basic Financial Statements—and Management's Discussion and Analysis—for State