LIVINGSTON PARISH COUNCIL LIVINGSTON, LOUISIANA Audit of Financial Statements December 31, 2019 Contents Statement Schedule Page Independent Auditor’s Report 1 - 3 Required Supplementary Information (Part I) Management’s Discussion and Analysis 5 - 11 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position A 13 Statement of Activities B 14 Fund Financial Statements Governmental Funds Balance Sheet C 16 - 17 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position D 18 Statement of Revenues, Expenditures, and Changes in Fund Balances E 19 - 20 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities F 21 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund G-1 22 Health Unit Special Revenue Fund G-2 23 Jail Sales Tax Special Revenue Fund G-3 24 Road Special Revenue Fund G-4 25 Office of Emergency Preparedness Special Revenue Fund G-5 26 Proprietary Fund Statement of Net Position H 27 Statement of Revenues, Expenses, and Changes in Net Position I 28 Statement of Cash Flows J 29 - 30 Notes to Financial Statements 32 - 78 Required Supplementary Information (Part II) Schedule of Council’s Proportionate Share of the Net Pension Liability 80 Schedule of Council’s Pension Contributions 81 Contents (Continued) Statement Schedule Page Other Supplementary Information Non-Major Governmental Funds Fund Descriptions 83 - 85 Combining Balance Sheet 1 86 - 87 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances 2 88 - 89 Schedule of Insurance in Force 3 90 Schedule of Sewer Rates and Number of Customers 4 91 Schedule of Compensation, Benefits, and Other Payments to Agency Head 5 92 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 93 - 94 Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance Required by Uniform Guidance 95 - 96 Schedule of Expenditures of Federal Awards 6 97 - 99 Schedule of Findings and Questioned Costs 100 - 101 Schedule of Prior Audit Findings 102 LaPorte, APAC 8555 United Plaza Blvd. | Suite 400 Baton Rouge, LA 70809 225.296.5150 | Fax 225.296.5151 LaPorte.com Independent Auditor’s Report To the Honorable Parish President and Members of the Livingston Parish Council Livingston, Louisiana Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Livingston Parish Council (the Council), as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the basic financial statements of the Council’s primary government as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Council’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Council’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. LOUISIANA • TEXAS An Independently Owned Member, RSM US Alliance RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent 1 from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Basis for Adverse Opinion on Aggregate Discretely Presented Component Units The financial statements referred to above do not include financial data for the Council’s legally separate component units. Accounting principles generally accepted in the United States of America require financial data for those component units to be reported with the financial data of the Council’s primary government unless the Council also issues financial statements for the financial reporting entity that include the financial data for its component units. The Council has not issued such reporting entity financial statements. Because of this departure from accounting principles generally accepted in the United States of America, the assets, liabilities, net position, revenues, and expenses of the aggregate discretely presented component units are not reasonably obtainable. Adverse Opinion on Aggregate Discretely Presented Component Units In our opinion, because of the significance of the matter described in the “Basis for Adverse Opinion on Aggregate Discretely Presented Component Units” paragraph, the financial statements referred to above do not present fairly the financial position of the aggregate discretely presented component units of Livingston Parish Council, as of December 31, 2019, or the changes in financial position thereof for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Unmodified Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities; the business-type activities; the major funds; and the aggregate remaining fund information of the primary government of Livingston Parish Council as of December 31, 2019, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the General Fund, Health Unit Special Revenue Fund, Jail Sales Tax Special Revenue Fund, Road Special Revenue Fund, and the Office of Emergency Preparedness Special Revenue Fund for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis beginning on page 5, and the supplementary schedules required by Governmental Accounting Standards Board Statement No. 68 on pages 80 and 81 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 Other Information Our audit was conducted for the purpose of forming opinions on the primary government financial statements that collectively comprise Livingston Parish Council’s primary government financial statements. The schedules listed in the table of contents as Schedules 1 through 5 are presented for purposes of additional analysis and are not a required part of the Council’s basic