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Pontchartrain Levee District State of Louisiana Lutcher, Louisiana

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Pontchartrain Levee District State of Louisiana Lutcher, Louisiana OFFlClttL FllECOPV DO WOT SEND OUT' (Xerox necessary copies from this copy and PLACE BACK in FILE) POOTCHARTRAINLEVEE DISTRICT STATE OF LOUISIANA FINANCIAL REPORT For the Year Ended June 30,2008 Under provisions of state law, this report is a public document. Acopy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court. Release Date f TABLE OF CONTENTS Independent Auditor's Report 1 Required Supplemental Information - Part I Management's Discussion and Analysis 3 Basic Financial Statements: Government-Wide Financial Statements (GWFS): Statement of Net Assets 8 Statement of Activities 9 Fund Financial Statements (FFS); Balance Sheet - Governmental Funds 10 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 11 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 12 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 13 Notes to Financial Statements 14 Required Supplemental Information - Part II Budgetary Comparison Schedule - General Fund 32 Other Supplementary Information Schedule of Per Diem Paid to Board Members 33 Non-Major Funds Descriptions 34 Combining Balance Sheet - Non-Major Governmental Funds 3 5 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-Major Governmental Funds 36 Other Reports 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 37 Schedule of Findings and Questioned Costs 39 Schedule of Prior Year Findings 40 Required Supplemental Information - Part III Division of Administration; Office of Statewide Reporting and Accounting Policy - Reporting Package 41 Hienz Certified Pubiic^Ccountants ROBERTW.HIENZ.C.PA 110 Veterans Memorial Blvd., Suite 170 ANTHONY J. MACALUSO, JR., C.P.A. Metairie, LA 70005 DAVID V.ERNST (504)837-5434 MEMBERS FAX (504) 837-5435 American Institute of Certified Public Accountants Society of Louisiana Certified Public Accountants WWW.hienZmacaluSO.COrn INDEPENDENT AUDITOR'S REPORT Board of Levee Commissioners of Pontchartrain Levee District State of Louisiana Lutcher, Louisiana We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Pontchartrain Levee District (the "Levee District"), a component unit of the State of Louisiana, as of and for the year ended June 30, 2008, which collectively comprise the District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in 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 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 opinion. 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 District as of June 30, 2008, 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, 2008, on our consideration of the 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 1 performed in accordance with Government Auditing Standards and should be considered in conjunction with this report in considering the results of our audit. The Management's Discussion and Analysis and budgetary comparison information listed in the table of contents are not a required part of the basic financial statements but are 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 an opinion on the financial statements that collectively comprise the District's basic financial statements. The supplementary information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The Annual Financial Statement Reporting Package, presented as supplementary information as listed in the table of contents, is not a required part of the basic financial statements, but is supplementary information required by Louisiana's Office of Statewide Reporting and Accounting Policy, This information has been subjected to the auditing procedures applied in the audit of the accompanying financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the accompanying financial statements taken as a whole. LLC 3 HIENZ & MACALUSO, LLC Metairie, LA August 27, 2008 PONTCHARTRAIN LEVEE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS AS OF JUNE 30,2008 The Management's Discussion and Analysis of the Pontchartrain Levee District's (the "Levee District") financial performance presents a narrative overview and analysis of the Levee District's financial activities for the year ended June 30, 2008. 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 Levee District's financial statements. FINANCIAL HIGHLIGHTS • The Levee District's assets exceeded its liabilities at the close of fiscal year 2008 by approximately $29.9 million, which represents a 7.8% increase from the last fiscal year. • The Levee District's revenue decreased $486,772 or 5.4%. The Levee District had property tax revenues of $6,716,983 for the current year ended June 30, 2008, an increase of $704,849 or 11.7% over prior year. Property tax revenues represent 78% of all revenues. Other decreases resulted from less intergovernmental revenues in the current year. Expenses decreased by $704,201 or 9.9% primarily due to a decrease in levee maintenance in the current year. • The Levee District recorded a liability for other post-employment benefits in the amount of $925,301 as a result of the implementation of GASB 45 in the current year. 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 Number 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, Management's Discussion an.CAnalysis \ - .-.!-,-*•.-.../ . .- 7 •-."-- •- . .-"•;.: ' 'Recjulfe^'Supgllmenfary Infofrhatiein- .[- ' '-^f'|J PONTCHARTRAIN LEVEE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS AS OF JUNE 30,2008 These financial statements consist of three sections - Management's Discussion and Analysis (this section), the basic financial statements (including the notes to the financial statements), and required supplementary information. Basic Financial Statements The basic financial statements present information for the Levee District as a whole, in a format designed to make the statements easier for the reader to understand. The statements in this section include the Statement of Net Assets and the Statement of Activities. The Statement of Net Assets presents the current and long-term portions of assets and liabilities separately. The difference between total assets and total liabilities is net assets and may provide a useful indicator of whether the financial position of the Levee District is
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