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or the year ended December 31 201

Dedicated to Feeding and Fueling merica


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COMPREHENSIVE

ANNUAL FINANCIAL REPORT

For The Year EndedDecember 31, 2012

The Lafourche Parish GovernmentThibodaux, Louisiana

Finance DepartmentDennis Muckelroy, Director


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LAFOURCHE PARISH GOVERNMENT

TABLE OF CONTENTS

Statement/ Page

Schedule Number

LETTER OF TRANSMITTAL 7

CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING 18PRINCIPAL OFFICIALS 19

ORGANIZATIONAL CHARTS 21

INDEPENDENT AUDITORS REPORT 23

MANAGEMENTS DISCUSSION & ANALYSIS 27

BASIC FINANCIAL STATEMENTS:

Government-Wide Financial Statements (GWFS)

Statement of Net Position A 39

Statement of Activities B 40

Fund Financial Statements (FFS)

Governmental Funds:

Balance Sheet C 42

Reconciliation of the Governmental Funds Balance Sheet (FFS)

to the Statement of Net Position (GWFS) D 45

Statement of Revenues, Expenditures, and Changes in Fund Balances E 46

Reconciliation of the Governmental Funds Statement of Revenues,

Expenditures and Changes In Fund Balance (FFS) to the

Statement of Activities (GWFS) F 48

Proprietary Funds:

Statement of Net Position G 49

Statement of Revenues, Expenses, and Changes In Net Position H 50Statement of Cash Flows I 51

Discretely Presented Component Units:

Combining Statement of Net Position J 52

Combining Statement of Activities K 58

NOTES TO THE FINANCIAL STATEMENTS 63

REQUIRED SUPPLEMENTAL INFORMATION

Budget Comparison Schedules - Major Funds:

001 General Fund 1.1 91

107 Solid Waste Fund 1.2 95

119 Library Commission Fund 1.3 96

NOTES TO THE REQUIRED SUPPLEMENTAL INFORMATION 97

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

Non-Major Governmental Funds:

Combining Balance Sheet by Fund Type 2.1 99

Combining Statement of Revenue, Expenditures and Changes

in Fund Balance by Fund Type 2.2 100

INTRODUCTORY SECTION

FINANCIAL SECTION

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TABLE OF CONTENTS

Statement/ Page

Schedule Number

Non-Major Special Revenue Funds:

Special Revenue Fund Descriptions 101

Combining Balance Sheet 3.1 106Combining Statement of Revenues, Expenditures and Changes

in Fund Balance 3.2 116

Schedule of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual:

101 Animal Control Fund 3.3 125

102 Building Maintenance Fund 3.4 126

103 Roads & Bridges Fund 3.5 127

104 Drainage Maintenance Fund 3.6 128

105 Street Light Fund 3.7 129

106 Road Sales Tax District 2 3.8 130

108 Royalty Fund 3.9 131

109 Board of Health Fund 3.10 132110 Recreation Fund 3.11 133

112 Criminal Jury Fund 3.12 134

113 Criminal Court Fund 3.13 135

114 Special District 1 Fund 3.14 136

115 Off Duty Witness Fund 3.15 137

118 Planning Commission Fund 3.16 138

121 Drug Court - Supreme Court Fund 3.17 139

123 Civil Defense 3.18 140

124 IV-D Grant Fund 3.19 141

126 Commission of Women Fund 3.20 142

127 Senior Citizen Activity Fund 3.21 143

128 Rededication Fund 3.22 144

129 Health Activity Fund 3.23 145

130 Head Start Fund 3.24 146

131 CACFP Heat Start Fund 3.25 147

141 CACFP OCA Fund 3.26 148

142 LCAA Operating Fund 3.27 149

143 Weatherization Grant Fund 3.28 150

144 LIHEAP Grant Fund 3.29 151

150 CSBG Grant 3.30 152

154 TANF Fund 3.31 153

160 Road Sales Tax District A Fund 3.32 154

161 Road Sales Tax District 2 Fund 3.33 155

171 Circle of Hope Fund 3.34 156

172 Bayou Country Children's Museum Fund 3.35 157181 Coastal Zone Management Fund 3.36 158

183 Christmas Tree Program Fund 3.37 159

184 MMS CIAP Project 3.38 160

185 Beachfront Development Commission Fund 3.39 161

196 FEMA Acquisition Fund 3.40 162

197 ARRA Fund 3.41 163

801 BP Oil Spill Fund 3.42 164

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TABLE OF CONTENTS

Statement/ Page

Schedule Number

Non-Major Debt Service Funds:

Debt Service Fund Descriptions 165

Combining Balance Sheet 4.1 166Combining Statement of Revenues, Expenditures and Changes


Schedule of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual:

302 Sinking Fund - Cert of Indebtedness, Building Bonds, Series 1999 4.3 171

313 Reserve Fund - Road Sales Tax District No. 3,5 & 6 4.4 172

314 Sinking Fund - Road Sales Tax Districts 3, 5 & 6 4.5 173

317 Sinking Fund - Consolidated Road Sales Tax District A 4.6 174

318 Sinking Fund - Road Sales Tax District 2 Series 2008 4.7 175

319 Reserve Fund -2012 Road Bond District A 4.8 176

Non-Major Capital Project Funds:

Capital Project Fund Descriptions 177

Combining Balance Sheet 5.1 178

Combining Statement of Revenues, Expenditures and Changes


Schedule of Revenues, Expenditures and Changes In Fund Balance -

Budget and Actual:

201 Construction Fund - Road District No. 2 5.3 180

206 Construction Fund - Road Sales Tax District 3, 5 & 6 5.4 181

299 Capital Projects Fund 5.5 182

Non-Major Enterprise Funds:

Enterprise Fund Descriptions 183

Combining Statement of Net Position 6.1 184

Combining Statement of Revenue, Expenses and Changes

in Net Position 6.2 186

Combining Statement of Cash Flows 6.3 188

Schedule of Compensation paid to Parish Council Members and President 191

Financial TrendsNet Position by Component Exhibit X-1 194

Changes in Net Position Exhibit X-2 196

Fund Balances of Governmental Funds Exhibit X-3 200

Changes in Fund Balances of Governmental Funds Exhibit X-4 202

Revenue Capacity Information

Tax Revenues by Source, Governmental Funds Exhibit X-5 204

Assessed Value and Estimated Actual Value of Property Exhibit X-6 206

Property Tax Rates Exhibit X-7 208

STATISTICAL SECTION (UNAUDITED)

SUPPLEMENTARY FINANCIAL INFORMATION

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TABLE OF CONTENTS

Statement/ Page

Schedule Number

Principal Property Tax Payers Exhibit X-8 210

Property Tax Levies and Collections Exhibit X-9 212

Debt Capacity Information

Ratios of Outstanding Debt by Type Exhibit X-10 214

Direct and Overlapping Governmental Activities Debt Exhibit X-11 216

Legal Debt Margin Information Exhibit X-12 218

Pledged-Revenue Coverage Exhibit X-13 221

Demographic and Economic Information

Demographic and Economic Statistics Exhibit X-14 222

Principal Employers Exhibit X-15 225

Operating Information

Full-Time Equivalent Parish Employees Exhibit X-16 226

Capital Asset Statistics by Function Exhibit X-17 228

Operating Indicators by Function Exhibit X-18 230

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 234

Report on Compliance With Requirements Applicable to Each Major ProgramAnd on Internal Control Over Compliance in Accordance With OMB

Circular A-133 236

Schedule of Expenditures of Federal Awards (notes included) 239

Schedule of Current Year Findings 243

Schedule of Prior Audit Findings 248

SINGLE AUDIT SECTION

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Introductory Section


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Charlotte A. Randolph Parish President John Arnold District 5

Jerry Jones District 1 Lindel Toups District 6

Michael Delatte District 2 Phillip Gouaux District 7

Aaron Caillouet District 3 Jerry LaFont District 8

Joseph Joe Fertitta District 4 Daniel Lorraine District 9

w w w . l a f ou r chegov . o r g

Charlotte A. Randolph, Parish President FinanceJune 30, 2013

Honorable President, Council Members and CitizensLafourche Parish, Louisiana

Ladies and Gentlemen:

Pursuant to the Louisiana State Statutes and the Revised Home Rule Charter of the Parish of Lafourche, State ofLouisiana (Home Rule Charter), I hereby issue the Comprehensive Annual Financial Report (CAFR) for the LafourcheParish Government for the fiscal year ended December 31, 2012. The Finance Department of the Lafourche ParishGovernment prepared this report in accordance with Generally Accepted Accounting Principles (GAAP) for localgovernments as prescribed by the Governmental Accounting Standards Board (GASB). This report satisfies Article VI,Section 7 of the Home Rule Charter which requires an annual financial and compliance audit of the financial statementsof the Parish to include all funds and account groups representing the financial transactions of the Parish and all

departments and offices. It also requires all political subdivisions of the Parish to submit their audit, compiled orreviewed reports to the Parish upon completion within six months from the end of the fiscal year.

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate ofAchievement for Excellence in Financial Reporting to Lafourche Parish Government for its comprehensive annualfinancial report for the fiscal year ended December 31, 2011. This was the fifth consecutive year the Parish achievedthis prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easilyreadable and efficiently organized comprehensive annual financial report. This report must satisfy both generallyaccepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annualfinancial report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it tothe GFOA to determine its eligibility for another certificate.

Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentationsincluding all disclosures rests with the Parish. We believe the data, as presented, is accurate in all material respectsand represented in a manner which fairly sets forth the financial position and results of the operations of the Parish.Furthermore, we believe all disclosures necessary to enable the reader to gain an understanding of the Parishsfinancial activity including changes in financial position and cash flows have been included.

The Parish financial statements have been audited by Stagni & Company, L.L.C., a firm of licensed certified publicaccountants. The goal of the independent audit was to provide reasonable assurance that the financial statements arefree of material misstatement. The independent audit involved examining, on a test basis, (1) evidence supporting theamounts and the disclosures in the financial statements; (2) assessing the accounting principles used and significantestimates made by management; and (3) evaluating the overall financial statement presentation. The independentauditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the

Lafourche Parish Primary Governments financial statements for the fiscal year ended December 31, 2012, are fairlypresented in conformity with GAAP. The independent auditors report is presented as the first document of the financialsection of this report.

The Parish Government is required to undergo an annual single audit in compliance with the provisions of the SingleAudit Act of 1996 and the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments,and Non-Profit Organizations.

402 Green Street P.O. Drawer 5548 Thibodaux, LA 70302Thibodaux 985.446.8427 Toll Free 800.834.8832 Fax 985.446.3528

Mathews 985.537.7603 Toll Free 800.794.3160

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Information related to this single audit includes the Schedule of Expenditures of Federal Awards, findings,recommendations, and the auditors report on the internal control structure and compliance with applicable lawsand regulations. These items are presented immediately following the Statistical Sectionof this report.

GASB Statement NO. 34, entitled Basic Financial Statements and Managements Discussion and Analysis forState and Local Governments, requires management to provide a narrative introduction, overview and analysisto accompany the Basic Financial Statements in the form of Managements Discussion and Analysis (MD&A).This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. TheLafourche Parish MD&A can be found immediately following the report of the independent auditor.

PROFILE OF LAFOURCHE PARISH

History

The Parish of Lafourche was created on March 31, 1807, and is a part ofAcadiana, or French Louisiana, home of the Cajun people. The Cajuns tracetheir ancestry to the French-speaking Acadians who migrated from Acadia (nowNova Scotia) in the mid-18th century. Lafourche Parish gets its name from theCajun French "La Fourche," meaning "fork," which describes how the bayou wasonce a descending fork of the Mississippi River.

Valued for its strategic location to New Orleans, Lafourche Parish escaped mostof the wanton destruction associated with the Civil War. In 1896, the UnitedStates Post Office established along Bayou Lafourche one of the first rural, free-delivery mail routes in the nation. Given the fact that most of the houses alongthis waterway fronted the Bayou, the postal authorities recognized the ease withwhich mail could be distributed.

There are three municipalities in Lafourche Parish: Thibodaux, Lockport, and Golden Meadow. The city ofThibodaux, the Parish seat, was incorporated in 1830 and is the Parishs oldest municipality. The city ofLockport was incorporated in 1899. Its growth and establishment is credited to the construction of the canal andlocks that facilitated the transfer of freight from Lafourche and Terrebonne parishes to New Orleans. Golden

Meadow was settled before 1825, and tradition suggests the town was named for the fields of goldenrodsclustered nearby. Because of its proximity to the Gulf of Mexico, Golden Meadow is one of the centers for thestates seafood industry.

Location/Geography

Lafourche Parish is located in southeast Louisiana, approximately 60 miles southwest of New Orleans. Theparish spans about 1,469 square miles of area at 100 miles long and 15 mile wide, in the area of greatestexpanse within the parish, and an elevation of around 15 feet above sea level. It is bordered by the Gulf ofMexico to its south, Terrebonne Parish to its west, Assumption Parish to its northwest, St. John and St. JamesParish to its north, and St. Charles Parish and Jefferson Parish to its east. Lafourche is comprised of marshes,sandy ridges, bodies of water, alluvial plains, and natural levees. It has an estimated population of 97,029.

Thibodaux, the parish seat, has an estimated population of 15,000 and is home to Nicholls State University andthe Louisiana Technical College Lafourche campus.

Lafourche Parish is accessible from US 90 west, exiting on LA Highway 308 or LA Highway 1. LA 1, the longestand oldest Louisiana highway, stretches 400 miles from the northwestern corner of Louisiana (near the Texasand Arkansas border) through Lafourche Parish along the western bank of Bayou Lafourche to the Gulf ofMexico at Grand Isle. About 16% of the parish consists of bayous and bays. Bayou Lafourche is often used asa point of reference when giving directions. People frequently refer to a given location as "up the bayou," "downthe bayou," or "across the bayou."

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Lafourche Parish Today

Lafourche, also known as the "Sportsman's Paradise," boasts anatural habitat for a wide range of wildlife such as deer, nutria,alligators, local and migratory waterfowl, and wild caughtLouisiana seafood often considered a national treasure. Majorindustries in Lafourche include oil and gas production, sugarrefining, shipbuilding, cattle ranching, and commercial andcharter fishing. The 2010 Dig In! campaign in Lafourche hashelped promote tourism throughout the parish. The Parish Logoand Slogan, Feeding and Fueling America, captures theattributes of the Parish and emphasizes the importance ofLafourche Parish in a more global perspective.

Profile of Government

Lafourche Parish is governed under a Home Rule Charter form of government. In November 2004, thevoters of the Parish adopted the Revised Home Rule Charter of the Parish of Lafourche, Louisiana whichis made up of the Executive Branch (President/Administrative) and the Legislative Branch (Council). The

elected Parish President serves as the leader of the Executive Branch of the Parish Government. TheLegislative Branch is the elected Parish Council and is composed of nine district representatives. Boththe Parish President and the Council serve four-year terms. There are three incorporated municipalities inLafourche Parish: Thibodaux (parish seat), Lockport, and Golden Meadow.

For the year ended December 31, 2011, the Parish President appointed department heads, subject to theLafourche Parish Councils approval, for the following major departments and serve at the discretion ofthe Parish President:

Administration Grants & Economic DevelopmentFinance & Purchasing Human ResourcesPublic Works Community Services

Parish Employees

The parish employs over 350 workers. Through the WOW(Wonderful Outstanding Worker) recognition program, employeesnominate and award each other for exemplary work. The criteria for thenomination are demonstrating outstanding performance, projectingwarm and considerate feeling towards coworkers and customers,supervisor recommended after nomination, and exhibits commitment toservice while sustaining a high level of productivity and quality of work.All employees are eligible with the exception of elected or appointedindividuals. Nominations are submitted to a committee of volunteer

peers for review and awards are given for the selected employee of themonth. These employees are acknowledged at the Council meetingseach month.

At the end of the year, the committee members review the yearsemployees of the month to vote on an employee of the year. Theemployee of the year for 2012 was awarded to Mr. Eric Benoit,Assistant Director of Emergency Preparedness Homeland Security,who has worked for the Parish since April 1997.

Eric Benoit with Parish PresidentCharlotte Randolph

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REPORTING ENTITY

A determination of the financial reporting entity to be included in this CAFR is made through the application ofcriteria established by the Governmental Accounting Standards Board (GASB) Statements 14 and 34. Acomplete explanation of the financial reporting entity is included in the Summary of Significant AccountingPolicies in the notes to the Financial Statements.

This CAFR includes the financial activities of the Primary Government and its component units. The Parishprovides a full range of services including general government, public safety, planning, sustainability, publichealth, public recreation and culture, and support to agencies within the Parish which provide services to theelderly, disadvantaged citizens, and the business and educational communities of the Parish.

The Parish financial reporting entity consists of the Primary Government, which is all funds under the auspicesof the Parish President and Parish Council and the legally separate component units, which are units ofgovernment that are legally separate from the Parish government but have a sufficiently close relationship withthe government to warrant inclusion in the consolidated financial report. A listing of these component units canbe found in the primary governments notes to financial statements.

MAJOR INITIATIVESHigher Education

Lafourche Parish is home to two tax-supported secondary educationestablishments. Founded in 1948, Nicholls State University, an accreditedfour-year institution, offers both bachelors and masters degrees in variousfields. The South Central Louisiana Technical College, a two-yearvocational/technical school located in Thibodaux and Galliano, offerstechnical certifications, diplomas, and associates degrees that meetcareer goals. These institutions continue to provide a qualified andskilled work force for the businesses located in Lafourche Parish and thesurrounding region.

Hurricanes

Programs and projects assisting with the ongoing recovery from HurricanesKatrina, Rita, Gustav, Ike, and Isaac are visible throughout the Parish. Severalpump station and levee projects are a direct result of Federal funding received bythe Parish for damages sustained from the above storms. The resiliency of thecitizens of Lafourche Parish is evident by the spirit exhibited during the Parishsresponse and recovery to all emergency situations. Special thanks to thoseLafourche Parish Government employees remaining in harms way during naturaldisasters to safeguard the Parishs assets and property along with assisting thosecitizens in need during these challenging times.

Levee, Pump Stations, and Drainage Projects

In an ongoing effort to protect the assets of Lafourche Parish citizens, theParish maintains and constructs levees, pumps, and pump stations within theParish. Terrebonne Parish and Lafourche Parish signed an agreement forsharing in cost of improvements and maintenance of some of the neighboringlevees. The pump stations are regularly checked to ensure the efficiency of thepumps. Prior to Hurricane season, Lafourche Parish readies itself withemergency supplies.

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Master Drainage Plan

After the hurricanes Katrina and Rita caused large amounts of destruction to the bayou regions of Louisiana,Lafourche Parish Government was awarded grant funding from a Community Development Block Grant-Disaster Recovery to create a Master Drainage Plan. The amount of $750,000 from CDBG and $130,604 fromNorth Lafourche Conservation, Levee Drainage District, was to be used to hire T. Baker Smith LLC asconsultants to assess, evaluate, and recommend necessary repairs and construction of pump stations anddrainage projects to alleviate further flooding throughout the Parish.

The project was divided into three Phases. Phase 1 publically announced what the project was for through apresentation at a council meeting and announced the website address, phone number, and location ofcomment cards created for feedback from the public. Phase 2 consisted of four public meetings that allowed thegeneral public to voice any concerns on the drainage problems. The opinions of the public, with data gatheredfrom various sources and consultants, were compiled to create the Master Drainage Plan. The Plan prioritizeddrainage areas that need improvements based on the number of residents and businesses in the area andoverall costs of improvements. Phase 3 developed a press release and T. Baker Smith gave a presentation ofthe details at the Lafourche Parish Council meeting and North Lafourche Levee District meeting in June 2012.Since the Master Drainage Plans release, some projects have begun improvements.

Roads and Bridges

Continuous improvements and maintenance of roads, highways, andbridges remain top priorities of Lafourche Parish Government. Theseprojects are funded through various sources such as Road Bond money,Parish funding, and Federal Grants. Inspections are made daily throughoutLafourche Parish by the field supervisors and managers. The repairs canrange from the size of a pothole or a light out on a bridge to the repaving ofan entire stretch of road or replacement of a bridge. The maintenancerequired is reported to the Director of Public Works for determination ofpriority. Once a bridge or road is determined to be in need of maintenanceor repair, the Director meets with the Grant Writer or Finance Director todiscuss options for funding the project.

Buildings

In 2008, many Lafourche Parish Government employees relocated fromthe Barrios Building to the old Wal-Mart building in Mathews. In 2011, a$3,409,027 renovation project took place at the Mathews GovernmentComplex providing the central part of the Parish with a modern up-to-datefacility to conduct Parish business. In July of 2012, the MathewsGovernment Complex was completed. The building houses service officessuch as the Community Action Agency, Head Start, Office of EmergencyPreparedness, Parks and Recreation, Permits and Planning Department,Public Works, and Solid Waste Department. The office also houses thenew Council Chambers for the Lafourche Parish Council public meetings,held every second and fourth Tuesday of the month.

In 2011, Federal funding was received from the Louisiana CommunityDevelopment Block Grant in the amount of $800,000 for the construction ofa new community center. In August of that year, Lafourche Parish begandemolition, clean-up, and reconstruction of the Raceland CommunityCenter. Upon completion in 2013, it is envisioned that the community centerwill house a representative of Lafourche Parishs Community Action Agencyto provide services, a Head Start classroom, space for after school tutoringprograms, and community gatherings and meeting spaces.

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Port Fourchon

In addition, the Parish is home to Port Fourchon on the Gulf Coast. Port Fourchons primary servicemarket is domestic oil and gas exploration, drilling and production in the Gulf of Mexico. The Port iscomprised of 600 developed acres which house state of the art service facilities and is in the midst of its700-acre northern expansion which will double the ports size and further accommodate the industrysgrowing needs. The strategic location of Port Fourchon makes it a cost effective location for companiesservicing the offshore industry. In addition to supply boats and tugboats, the ports location is alsoconvenient for the repair and maintenance of mobile rigs. Currently Port Fourchon services over 75% ofthe Gulf of Mexico deepwater oil production. It is projected that the port will service 44% of pendingfuture deepwater plans and over half of all offshore drilling in the Central Gulf over the next 30 years. It isalso the land base for Louisiana Offshore Oil Port (LOOP), the nations only super-port.

LOOP (Louisiana Offshore Oil Port)

LOOP transports approximately one million barrels of foreign oil per day andapproximately 300,000 barrels of domestic crude from the Gulf of MexicoOuter Continental Shelf (OCS). In 2005, 1.2 million barrels of imported oilwas transported by LOOP. Of the 165 plus current and pending deepwaterprojects that have been identified to date, 50% are using or plan to use Port

Fourchon as its service base. The discovery of new prospects is growing ata rate of 17% per year.

Leonard Miller, Jr. Airport

The close proximity of the South Lafourche Leonard Miller, Jr. Airport toPort Fourchon makes it the airport of choice for both business andrecreational travel to South Louisiana. Acquired in 2001 by the GreaterLafourche Port Commission, this general aviation airport sits on 359acres in Galliano, Louisiana, and is surrounded by 1,200 acres ofcommission-owned property slated for industrial development. Theairport has a 5,000-foot runway with expansion plans for a 6,500-foot

runway with a full parallel taxiway to accommodate large jet aircraft.

LA 1 (Louisiana Highway 1) Gateway to the Gulf

LA Highway 1 is the only link to approximately 18% of the United States total energy supply. The highwayserves as Main Street for communities along its route and an evacuation route for southern Lafourche Parishand Grand Isle residents earning the reference of "longest street in the world." Nearly 10,000 vehicles a daytravel the southernmost portion of Louisiana Highway 1 which is considered an over-burdened two-lanehighway continuously threatened by coastal erosion and often inundated with water during inclement weather.

Recognizing in 2001 that LA 1 is extremely significant to both the nation's energy supply and generates billionsof dollars in OCS revenues, the U. S. Congress named this critical energy infrastructure to the federal list of

"high priority corridors. This designation puts LA 1 in an impressive class of only 44 such transportation arteriesin the nation. The LA 1 project is to be designed so that it can be constructed using "end-on" type constructionmethods whenever possible to protect our sensitive wetlands and marshes. Phased construction will allow theportions of the project to be constructed as funding is available.

In March of 2006, state highway officials, elected leaders, and members of the LA 1 Coalition celebrated thestart of construction on a new Leeville elevated highway. Funding sources are revenue from bond proceeds aswell as a Federal highway loan. Local industry and community residents will service these debts by payinghighway tolls to access the new highway for the next thirty years; however, significant funding is still needed tomake a safer, more reliable and secure LA 1 a reality.

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Tourism

Since 1998, tourism in the Parish has increased by an annual average of15%. Currently, the Parish is in the process of developing the BayouLafourche Corridor as a recreation and economic development initiative.Touring plantations and swamps allows tourist to have a glimpse of southernlife. Lafourche Parish offers a number of fairs and festivals throughout theyear, ranging from Mardi Gras to the Cajun Heritage Festival. Offering visitorsgreat food and close proximity to the Gulf of Mexico, Lafourche Parishprovides a destination unlike any other.

Devastation hit in April 2010 with the BP oil spill, causing a disruption to thelives of local communities and wildlife across the coast of the Gulf of Mexico. Inan effort to recover the tourism along the Gulf coast, BP awarded areas acrossthe coast funding assistance. Lafourche Parish alone was awarded $2.6 milliondollars from BP for tourism marketing use. The funds granted to LafourcheParish created the Dig In! campaign. The campaign was instituted usingwww.diginlafourche.com and spread to other advertising methods such asmagazines, Facebook, Google, Yahoo, billboards and radio commercials, usingBobby Hebert as the spokesperson. Events such as fairs, festivals, fishing

rodeos, and concerts are featured on this website. The funds were also used tohelp local charter captains create and maintain individual websites to assist inincreasing the tour bookings for their businesses.

The Lafourche Central Market opened in September 2012 after years ofbeing on the drawing board. Located of Highway 1 in Mathews, this vastopen-air pavilion is home to 32 booths with water and electricity outlets forrent to vendors, a stage allowing music for entertainment, public restroomfacilities, and is continuing to grow. Each Saturday a variety of vendorsthroughout the parish and surrounding areas come to sell items such asproduce, fruit, shrimp, crabs, fish, farm fresh eggs, homemade wine, pastries,art work, hand sewn clothing, and more.

FINANCIAL MANAGEMENT

Local Economy

Education, banking, healthcare, farming, oil and gas production, oilfieldservice and supply, shipbuilding, sugar refining, tourism, and charter andcommercial fishing are the main industries supporting the Parishs economy.It is estimated that shipbuilding is responsible for 35,000 jobs in the state.There are a number of shipyards in Lafourche Parish including BollingerShipyards and North American Shipbuilding with both companies beingawarded contracts to provide vessels to both the Defense Department and

Department of Homeland Security.

Despite the recent national trend of high unemployment, Lafourche Parish hasmaintained an unemployment rate much lower than the national level. TheDeepwater Horizon explosion and the Federal Governments moratorium on deep-water drilling are tough obstacles to overcome. Despite these challenges, theresiliency of the citizens of Lafourche Parish along with businesses committed tomaintaining operations in the Parish yields a bright economic future for LafourcheParish.

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Internal Controls and Budgetary Control

The system of internal control is designed to provide reasonable, but not absolute, assurance that GAAPobjectives are met. The concept of reasonable assurance recognizes the following: 1) the cost of controlshould not exceed the benefits likely to be derived; and 2) the evaluation of costs and benefits requiresestimates and judgments by management. All internal control evaluations occur within this framework and arebelieved to adequately safeguard assets and provide reasonable assurance of proper recording of financialtransactions. The Parish uses a computerized financial accounting system that includes a system of internalaccounting controls.

The Finance Department is responsible for providing all centralized Parish financial services including financialaccounting, reporting and budgeting, payroll, accounts payable disbursement functions, cash and investmentmanagement, debt management, purchasing, and contract administration. The Director of Finance is appointedby the Parish President and confirmed by the Council. The Director of Finance serves at the discretion of theParish President.

The objective of budgetary controls is to ensure compliance with legal provisions in the annual appropriatedbudget approved by the Parish Council. In accordance with Article VI of the Home Rule Charter, the annualoperating budget is proposed by the Parish President and enacted by the Parish Council after public discussion.Subsequent intra-departmental budget transfers must be approved by the Parish President. Inter-departmental

transfers and any increase or decrease in total appropriations must be approved by the Parish Council.Management control for the operating budget is maintained at the fund and department level.

Budgetary control is maintained by the encumbrance of appropriations with purchase orders prior to theirrelease to vendors. Purchase orders exceeding appropriated balances are not released unless additionalappropriations are made available. The primary responsibility for fiscal analysis of budget to actual expense orrevenue and overall program fiscal standing rests jointly with the department operating the program along withthe fund accountant assigned to assist the department in monitoring its budget. As demonstrated by thestatements and schedules included in the Parishs 2012 CAFR, the Parish continues to meet its responsibilitiesfor sound financial management.

Cash Management

Lafourche Parishs investment policy is to minimize credit and market risk while maintaining a competitiveportfolio yield. Approved by the Council in 1999, the Parish investments are held in a local governmentinvestment pool which is administered by LAMP. Louisiana Asset Management Pool, LAMP, is a non-profitcorporation organized under the laws of the state to provide a safe environment for the placement of publicfunds in short-term, high quality investments. The following table illustrates the investment earnings yearly since2009 in the LAMP accounts for Lafourche Parish.

Year Interest Earnings Average Investment Rate

2012 $40,144.95 0.15%

2011 $29,305.69 0.11%

2010 $41,741.95 0.17%

2009 $96,441.00 0.38%

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Major Accomplishments

In 2012 Lafourche Parish Government took many strides in betteringvarious areas within the Parish. The Thibodaux Library buildingrenovations were completed adding more room for patrons, books, andstudy space. The Mathews Government Complex renovations werecompleted in July of 2012. Offices were created for various departments,allowing privacy for clients and citizens to apply for grant assistance,purchase permits, or file claims. The Council Meeting area was created toprovide more seating for public attendance and better equipment for anypresentations needed to be given.

Recreation projects were completed throughout the Parish with savedfunding set aside by each district. In Heros Park a new concessionstand and restroom was constructed. Golden Meadow Boat Launchinstalled 520 feet of pipe post for additional security into the restrictedarea and one way access to the boat launch. A slab was poured and

two pavilions were constructed on the existing slabs in Oakridge Park inGolden Meadow.

Roads and bridges require constant attention and care which tend to makethese projects more extensive than most. Upon inspection of the BurmaRoad Bridge in 2011, the Department of Transportation and Developmentnoted the structural integrity and the abutment wall on the north and southsides of the bridge shifted inward causing a lack of support. Once thisinformation was provided to Lafourche Parish, the decision was made todemolish existing bridge and reconstruct a new one in its place, which wascompleted in 2012. Beginning in 2011 and ending in 2012, approximately

500 feet of Mockingbird Lane was resurfaced, changing domestic limestoneto asphalt.

Maintaining levees, pumps, and pump stations is an ongoing process tokeep Lafourche Parish protected from the many storms that taunt theGulf Coast. The completion of the Master Drainage Plan has given theParish a detailed scope of improvements to be made to different pumpsand pump stations. With money from the Community DevelopmentBlock Grant, the parish began the engineering and design phase forelevation and armoring of the existing Lockport and Company Canallevees. Terrebonne Parish and Lafourche Parish have signed an

agreement to share in the cost of maintaining and improving the Cut Offand Pointe-Aux-Chenes levees which run through both parishes. Withthe collapse of the levee, the new bulkhead was built at the end ofSupercharge Drive. Several pumps have had new engines installed in2012 including Clotilda, Leighton, Manchester Manor, Rita, and Alidorein preparation for the upcoming hurricane season.

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Upcoming Projects

Many structural projects have begun in 2012 through CommunityDevelopment Block Grants and Federal Emergency Management Agencyfunds. The Raceland Community Centers construction completion isscheduled for 2012 and will provide classrooms and after schoolenhancement programs within the community. The expansion of theparking lot and construction of a 50 by 80 foot structure for equipmentstorage at the Golden Meadow Town Hall is in the consulting phase. TheRaceland Ag Center is undergoing demolition and reconstruction of the

public restroom, construction of an enclosed canopy, and expansion of the existing building. The AffordableRental Housing project will construct homes with low rent suitable to lower and moderate income families.Impact resistant window and door treatment protection throughout 27 public buildings, schools, and seniorcitizen homes are being designed, constructed, and installed in the Wind Retrofit of Public Facilities grant funds.

Lafourche Parishs recreational activities help attract tourism into the Parish. CDBG funded the Central Marketconstruction, a pavilion that allows vendors to sell many items at in an open-air market, and is currentlyfinalizing. Grant funds are being used to construct the Leeville Boat Launch and Lockport Elevated Wetlands.The Safe Routes to School project is going to provide a sidewalk from the Raceland Community Center toRaceland upper Elementary and Middle Schools for the safety of children walking or biking to school as well as

providing the children with safety knowledge. The Scenic Byway Wharf project, which will construct a coveredwharf/overlook at the Visitors Center in Raceland, will begin in 2013. In 2013, BP provided funding foradvertisement cost for five non-profit cultural attractions in Lafourche Parish through the Gulf Tourism andSeafood Promotional Fund.

Consistent safety maintenance creates road projects that are nearing the end,on-going, or beginning in upcoming years. Starting in 2011, funds from RoadSales Tax District 2 were used to repair various streets in Golden Meadow.Due to modifications of the nearby levee, South Lafourche Levee District incollaboration with Lafourche Parish Government is beginning the relocationClovelly Road. CDBG awarded the parish funds for resurfacing the LaurelValley Road from the junction at Highway 308 to Choctaw Road,approximately 5.1 miles, in which final inspection is pending. Through cost

efficient analysis, it was decided that 2,200 feet of Louisiana Highway 308 will be elevated. Consolidated RoadSales Tax District A funds will be used to provide overlay, reconstruction, and improvements to 22 streets withengineering designs from Duplantis Design Group and over 15 streets and cross streets with engineeringdesigns from T. Baker Smith throughout Lafourche Parish.

Drainage projects hold high priority in keeping Lafourche Parish flood free duringstorms. Culverts are going to be installed in Edgewood and Country ClubBoulevard, Delta Woods, and Twin Oaks subdivision, with the neighboringshopping center and truck stop, to assist in better drainage within these areas.With the Master Drainage Plan in place, CDBG funding has been requested forvarious pump improvements, refurbishments, or new pumps to be completed atDistrict 1 of 12 and 2 of 12, Jesse Dufrene, and Larose pump stations. Prior to

the Master Drainage Plan, improvements were beginning at Dugas Drainage Canal, Sugar Ridge, Midway,

Emerald Park and Parr pump stations.

Continuous improvement to levees and bulkheads in the parish are also helping to assist in drainage andconservation. The Westside drainage ditch is currently undergoing improvement to the subsurface and the ditchdrainage infrastructure will be opened. Construction is underway for 2,000 linear feet of new steel and vinylsheet pile walls to replace the current existing Des Allemands bulkhead. The Bayou Lafourche SaltwaterControl Structure is being constructed from a steel barge that will be sunk and acting as an arm to open andclose as needed when backflow occurs from the Gulf of Mexico into Bayou Lafourche. The control system issignificant in avoiding high salt levels in Bayou Lafourche which result in contamination of drinking water throughthe water plants located on the bayou.

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Long Term Financial Planning

On a monthly basis, critical factors such as the Parishs revenue streams, economic, and demographic growthfactors are reviewed and analyzed to forecast future revenue and expenses of the Parish. The goal is todevelop a strategic plan providing essential services and infrastructure for Lafourche Parish in conjunction withplanning for anticipated growth and financing for both future capital improvements and asset maintenance.

Preserving and improving all Parish capital assets and property are top priorities of the Parish and are reviewedfrequently to ensure the Parish is utilizing tax dollars at a high level. Continued considerations are given forroad improvements along with projects addressing drainage, flood protection, and coastal erosion. On anannual basis, planning the undertaking of capital projects, purchasing capital assets, and repairing andmaintaining Parish assets and property are part of a five-year plan to put Lafourche Parish Government in aposition to provide optimal services with the best equipment throughout the Parish.

ACKNOWLEDGMENTS

We wish to express our appreciation to all departments of the Parish who assisted and contributed to thepreparation of this report. Special thanks for a job well done to the staff of the Finance and Purchasing

Department. Team members are Renita Jackson, Accountant Manager; Sonya Ockman, Accountant II; ConnieDuet, Accountant II; Victoria Lovell, Accountant II; Michael Hanley, Accountant II; Annette Rich, Accountant II;Tara LeBlanc, Purchasing Specialist III; Faye Morvant, Accountant I; and Kathy Grabert, Accounting/PurchasingClerk III. Each of these individuals performs daily job duties to ensure sound financial practices are followed andmaintained. Without their hard work and dedicated efforts, successful completion of this report would not bepossible.

Finally, we acknowledge the dedication and perseverance of Parish President Charlotte A. Randolph. Hertireless efforts representing Lafourche Parish at local, state, and national levels are an inspiration to all who callLafourche Parish home. We also wish to acknowledge the hard work of the Lafourche Parish CouncilMembers, Department Heads and Managers, all Lafourche Government employees, and citizens of LafourcheParish. Your support in maintaining Lafourche Parish Governments goal of excellence and transparency in allaspects of financial management is greatly appreciated.

Respectfully submitted,

Dennis MuckelroyDirector of Finance

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Randolph Administration

Resilient. Resourceful. Restorative. Lafourche Parish residentshave endured hurricanes, an oil spill, a recession and a

potential river flood in recent years. Yet we remain strong,ready for the next challenge and prepared for the nextopportunity to achieve more. This attitude has allowedLafourche Parish to continue to move forward throughadversity and to ensure that those who have suffered from thedisaster are not forgotten. This attitude is also reflected inthose who work for parish government, as they continue toprovide the services residents of our parish expect anddeserve. Improved drainage, roads, hurricane protection,recreation, senior services, and other quality of life issuescontinue to be our focus. Millions of dollars in grants will buildnew pump stations and assist in restoring our coast. LafourcheParish is poised to enter 2012 with the anticipation of more

good things to come.

2012 Lafourche Parish Council

(Front Row, Left to Right) (Back Row, Left to Right)Michael Delatte, Council District 2 John Arnold, Council District 5Aaron Caillouet, Council District 3 Jerry Jones, Council District 1Charlotte Randolph, Parish President Joe Fertitta, Council District 4Jerry LaFont, Council District 8 Daniel Lorraine, Council District 9Lindel Toups, Council District 6,chairman L. Phillip Gouax, II, Council District 7

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Parish of LafourcheOrganizational ChartPrimary Government

Citizens of Lafourche

Executive Branch

Parish Administrator

Legislative Branch

Council Clerks Office

Civil Service

Community Services

Grants & Economic Development

Finance

Human Resources

Public Works

Parish President

Parish CouncilOffice of EmergencyPreparedness

Legislative Auditor

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Parish of LafourcheOrganizational Chart

Department of Finance

Parish President

Director of Finance

Finance Purchasing

Citizens of Lafourche

Parish Administrator

Risk Management

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Financial Section


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207 LAFAYEAVENUE THIBODAUX, LA 70301 (985) 447-7226 FIRMWIDEFAX (985) 446-3032

1401 HUDSON LANE SUITE 201MONROE, LA 71201 (318) 322-2870 EMAIL: [email protected]

13110 Hwy 90 (PO Box 524) BOUTTE,LA70039 (985)785-2928 MEMBERS:AICPA LCPA

STAGNI COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS

INDEPENDENT AUDITOR'S REPORT

To the President and Members of theLafourche Parish CouncilThibodaux, Louisiana

Report on the Financial StatementsWe have audited the accompanying financial statements of the governmental activities, the business-typeactivities, the aggregate discretely presented component units, each major fund, and the aggregateremaining fund information of the Parish of Lafourche, Louisiana (the Parish), as of and for the year endedDecember 31, 2012, which collectively comprise basic financial statements, as listed in the table ofcontents.

Managements Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes thedesign, implementation, and maintenance of internal control relevant to the preparation and fair presentation offinancial statements that are free from material misstatement, whether due to fraud or error.

Auditors Responsib il ityOur responsibility is to express an opinion on these basic financial statements based on our audit. We didnot audit the financial statements of Fire Protection District No. 3, Hospital Service District No. 1, HospitalService District No. 2, Hospital Service District No. 3, Home Mortgage Authority, Housing Authority,

Juvenile Justice Commission, Communications District, Drainage District No. 1, Tourist Commission, LATWorkforce Investment Board, Inc., and Ambulance Service District No. 1, which represent 81 percent, 84percent, and 93 percent, respectively, of the total assets, total net assets, and total revenues of theLafourche Parish component units. Those financial statements were audited by other auditors whose reportthereon has been furnished to us, and our opinion is based on the report of the other auditors.

We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica, and the standards applicable to financial audits contained in GovernmentAuditing Statements,issued by the Comptroller General of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the basic financial statements are free of materialmisstatement.

An audit includes performing procedures to obtain audit evidence supporting the amounts and disclosures in

the financial statements. The procedures selected depend on the auditors judgment, including theassessment 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 entitys preparation andfair presentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internalcontrol. Accordingly, we express no such opinion.

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STAGNI COMPANY, LLC

To the President and Members of theLafourche Parish CouncilPage 2 of 2

An audit also includes evaluation the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall presentation of thefinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinions.

OpinionsIn our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, the business-type activities, the aggregatediscretely presented component units, each major fund, and the aggregate remaining fund information ofthe Lafourche Parish Council as of December 31, 2012, and the respective changes in financial positionand cash flows, where applicable, for the year then ended in conformity with accounting principles generallyaccepted in the United States of America.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the ManagementsDiscussion and Analysis and the Required Supplementary Information be presented to supplement thebasic financial statements. Such information, although not a part of the basic financial statements, isrequired by the Governmental Accounting Standards Board, who considers it to be an essential part offinancial reporting for placing the basic financial statements in an appropriate operational, economic, orhistorical context. We have applied certain limited procedures to the required supplementary informationin accordance with auditing standards generally accepted in the United States of America, which consistedof inquiries of management about the methods of preparing the information and comparing the informationfor consistency with managements responses to our inquiries, the basic financial statements, and otherknowledge we obtained during our audit of the basic financial statements. We do not express an opinion orprovide any assurance on the information because the limited procedures do not provide us with sufficientevidence to express an opinion or provide any assurance.

Other InformationOur audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the basic financial statements. The supplementary information section (combining and individualfund financial statements) and other supplementary information section are presented for purposes ofadditional analysis and are not a required part of the financial statements. The accompanying Schedule ofExpenditures of Federal Awards is presented for purposes of additional analysis as required by U. S. Officeof Management and Budget Circular A-133, Audits of States. Local Governments, and Non-ProfitOrganizations, and is also not required part of the financial statements.

The combining and individual non-major fund financial statements and the Schedule of Expenditures ofFederal Awards are the responsibility of management and were derived from and relate directly to theunderlying accounting and other records used to prepare the financial statements. The information hasbeen subjected to the auditing procedures applied in the audit of financial statements and certain additional

procedures, including comparing and reconciling such information directly to the underlying accounting andother records used to prepare the financial statements or to the financial statements themselves, and otheradditional procedures in accordance with auditing standards generally accepted in the United States of

America. In our opinion, the information is fairly stated in all material respects in relation to the financialstatements as a whole.

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STAGNI COMPANY, LLC

To the President and Members of theLafourche Parish CouncilPage 2 of 2

The Introductory Section and Statistical Section (UNAUDITED) are presented for purposes of additionalanalysis and are not a required part of the basic financial statements. The Introductory Section, CertainSupplemental Financial Information Schedules marked Unaudited and Statistical Tables have not beensubjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly,we express no opinion on them.

Other Reporting Required by Government Audi ting Standards

In accordance with Government Auditing Standards, we have also issued a report dated June 19, 2013, onour consideration of the internal control over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that reportis to describe the scope of our testing of internal control over financial reporting and compliance and theresults of that testing and not to provide an opinion on the internal control over financial reporting or oncompliance. That report is an integral part of an audit performed in accordance with Government AuditingStandardsin considering internal control over financial reporting and compliance.

Stagni CompanyThibodaux, LouisianaJune 19, 2013

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LAFOURCHE PARISH GOVERNMENTMANAGEMENTS DISCUSSION AND ANALYSIS

December 31, 2012

These services are financed primarily with taxes. The business type activities reflect private sector typeoperations (sewer utilities) where the fee for service typically covers all or most of the cost of operations,including depreciation.

Fund Financial Statements (FFS) A fund is a grouping of related accounts that is used to maintaincontrol over resources that have been segregated for specific activities or objectives. Traditional users ofgovernmental financial statements will find the fund financial statements presentation more familiar. Thefocus is now on major funds, rather than generic fund types.

Governmental Funds are used to account for essentially the same functions reported asgovernmental activities in the GWFS. The Major Fund presentation is presented on a modifiedaccrual basis. Unlike the GWFS, governmental FFS focus on near-term outflows of spendableresources, as well as on balances of spendable resources available at the end of the year. Suchinformation may be useful in evaluating a governments current financing requirements.

Proprietary Funds encompass both enterprise and internal service funds on the FFS.Enterprise funds are used to report the same functions presented as business-type activities inthe GWFS. Internal service funds are an accounting device used to accumulate and allocate

costs internally among the various functions. The Parish uses an internal service fund to accountfor the self insurance of workers compensation. Because these services predominantly benefitgovernmental rather than business-type functions, they have been included within thegovernmental activities section in the GWFS.

FFS also allow the Parish to present fiduciaryfunds. While these funds represent a trust responsibility,these assets are restricted in purpose ad do not represent discretionary assets of the government.Therefore, these assets are not presented as part of the GWFS.

While the total column on the proprietary FFS for enterprise funds is the same as the business-typecolumn at the GWFS, the governmental major funds total column requires reconciliation because of thedifferent measurement focus that is reflected on the page following each statement. The flow of currentfinancial resources will reflect bond proceeds and the inter-fund transfers as other financing sources and

will show capital expenditures and bond principal payments as expenditures. The reconciliation willeliminate these transactions and incorporate the capital assets and long-term obligations into theGovernmental Activities column in the GWFS.

Notes to the Financial Statements The notes provide additional information that is essential to a fullunderstanding of the data provided in the GWFS and FFS. The notes to the financial statements are arequired part of the basic financial statements.

Other Information In addition to the basic financial statements and accompanying notes, this reportalso presents certain required supplementary information concerning major fund budgetary comparisons.The Schedule of Compensation Paid to Parish Council and President is also required supplementaryinformation.

The combining statements in connection with the non-major governmental and proprietary funds arepresented immediately following the required supplementary information. Certain other supplementaryfinancial information can be found in this report such as the schedule of federal awards.

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December 31, 2012

FINANCIAL ANALYSIS

The Statements of Net Position includes all of the assets and liabilities and provides information about thenature and amount of investments in resources and the obligations to creditors. This statement providesthe basis for evaluating the capital structure and assessing the liquidity and financial flexibility of theParish.

To begin our analysis, a condensed summary of the Statement of Net Position is presented in thefollowing table:

Condensed Statement of Net Position

December 31, 2011 and 2012

(in millions)

2011 2012

GovernmentalActivities

Business-Type

Activities TotalGovernmental

Activities

Business-Type

Activities Total

Assets:

Current and Other $ 53.690 $ 0.016 $53.706 $ 81.688 $ 0.017 $81.705

Capital 71.951 2.789 74.740 75.672 3.367 79.040

Total 125.641 2.805 128.447 157.361 3.384 160.745

Liabilities:

Current 4.959 0.273 5.232 7.865 0.275 8.140

Long-Term 36.715 - 36.715 59.341 - 59.341

Total 41.674 0.273 41.947 67.206 0.275 67.481

Net Position:

Invested in CapitalAssets, Net 44.069 2.789 46.858 51.148 3.367 54.515

Restricted 13.441 - 13.441 38.436 - 38.436

Unrestricted 26.458 (0.257) 26.202 0.571 (0.258) 0.313

Total $ 83.967 $ 2.532 $86.500 $ 90.155 $ 3.109 $93.264

In 2012, $54.5 million of the total net assets reflects the investment in capital assets (land, buildings,infrastructure, machinery and equipment) less any related outstanding debt used to acquire those assets.The Parish uses these capital assets to provide services to citizens; consequently, these assets are notavailable for future spending. Another $7.3 million of the net assets is restricted for debt service and$31.1 million for capital projects.

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December 31, 2012

The following depicts the composition of total net assets for 2012 and 2011:

2012

2011$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Amount(inthousands)

Total Net Assets

(in thousands)

2012 2011

Invested in

CapitalRestricted Unrestricted

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December 31, 2012

The table following provides a summary of the statement of activities:

Condensed Statement of ActivitiesFor the Year Ended December 31, 2011 and 2012

(in millions)

2011 2012

GovernmentalActivities

Business-Type

Activities TotalGovernmental

Activities

Business-Type

Activities TotalRevenues:Program Revenue:

Charges for Services $ 3.382 $ 0.195 $3.576 $ 3.477 $ 0.204 $ 3.682

Operating Grants 19.299 - 19.299 18.640 - 18.640

Capital Grants 3.349 - 3.349 3.482 0.861 4.343

General Revenue:

Taxes 36.003 - 36.003 35.584 - 35.584

Unrestricted Grants - - - - - -

Interest 0.084 - 0.084 0.049 - 0.049

Miscellaneous 0.799 - 0.799 0.237 - 0.237

62.916 0.195 63.110 61.469 1.065 62.534

Expenses:

General Government 13.533 - 13.533 5.037 - 5.037

Public Safety 10.108 - 10.108 11.461 - 11.461

Public Works 21.477 - 21.477 23.984 - 23.984

Sewer - 0.439 0.439 - 0.488 0.488

Health & CommunityServices

10.269 - 10.269 7.100 - 7.100

Culture and Recreation 5.366 - 5.366 6.442 - 6.442

Interest 1.487 - 1.487 2.125 - 2.125

62.241 0.439 62.680 56.149 0.488 56.637

Increase (Decrease) 0.675 (0.245) 0.430 5.320 0.577 5.896

Net Position -Beginning,Restated

83.293 2.777 86.070 84.835 2.532 87.368

Net Position - Ending $ 83.967 $ 2.532 $86.500 $ 90.155 $ 3.109 $ 93.264

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December 31, 2012

2012 Revenues by Source - Governmental Activities

Charges for Services

Operating Grants

Capital Grants

Taxes

Unrestricted Grants

Interest

Miscellaneous

2011

2012

Year

Business Type Activities Program Revenue and

Expenses

Expenses Revenues

Net position increased by $6,764,273 during 2012. Total revenues decreased by $576,624 while totalexpenses increased by $5,466,737. The major increases and decreases were in governmental activitiesin the following areas:

Operating grants received decreased by 3% from the prior yr. Taxes ad valorem, sales, andother decreased by 1% since 2011.

Total expenses for all activities decreased by $6,091,989 or 10% from the prior year. Generalgovernment expenses decreased by 63% due completion of grants and various projects. Publicsafety and public works had an increase in expenses of approximately 10%. Community servicesactivities decreased by 31% due to no longer spending funds for planning commission,Weatherization projects, Emergency Food and Shelter, the TANF grant, and the CIAP grant.

Business Type Activities nets assets increased by $576,538. Charges for sewer services increasedby 11% or $48,628 and expenses to operate this service were $488,061.

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December 31, 2012

FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS

Governmental Funds:

The focus of the Parishs governmental funds is to provide information on near-term inflows, outflows, andbalances of spendable resources. Such information is useful in assessing the financing requirement. Inparticular, unassigned fund balance may serve as a useful measure of a governments net resourcesavailable for spending. The primary government governmental funds reported combined ending fundbalances of $72,989,417 an increase of $26,023,565 from the prior year.

Governmental fund balances are classified as non-spendable, restricted, committed, assigned, orunassigned. Non-spendable fund balance cannot be spent because of its form. Restricted fund balancehas limitations imposed by creditors, grantors, or contributors or by enabling legislation or constitutionalprovisions. Committed fund balance is a limitation imposed by the Council through approval ofresolutions. Committed fund balance can be assigned for other uses only by similar action of the Council.

Assigned fund balances is a limitation imposed by a designee of the Council. Unassigned fund balance inthe General Fund is the net resources in excess of what can be properly classified in one of the abovefour categories.

Certain balances are non-spendablefor: Prepaid Assets - $133,109

Certain balances are restrictedfor: Capital Projects - $31,164,521 Judicial - $2,458,353 Federal and State Grant Programs - $773,557 Debt Service - $7,271,751

Certain balances are committed for: Public Safety - $1,737,990 Public Works- $11,575,413 Culture and Recreation - $15,155,398 Health and Community Services - $1,280,191

Other highlights of the Major Governmental Funds were:

General Fund experienced an excess of revenues over expenditures of $3,025,815 before transfers.The net change in fund balance for the year in General Fund was $817,653.

Some of the significant changes and reasons for that change are highlighted below: Federal and state grant revenues increased by $2,067,169 from the prior year. Personnel services, professional services and operating supplies all decreased from the prior

year.

Solid Waste Fund experienced an excess of expenditures over revenues of ($688,764). Revenuesincreased by $1,060,748 from receiving an increase in Federal grant funds; however there is also anincrease in expenditures of $1,619,002 for said funding and other projects within the Parish.

Library Commission Fund - experienced an excess of revenues over expenditures of $996,260.Revenues and expenditures remained relatively stable.

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December 31, 2012

Road Construction District 3, 5, 6 experienced an excess ofexpenditures over revenues ($1,777,141)with a significant increase in expenditures due to the various road projects under construction throughoutthe Parish. The projects have assistance in funding from bond proceeds and transfers of $23,821,917.

Proprietary Funds:

Enterprise Funds - Net position of the Sewerage Funds totaled $3,108,991, an increase of $576,538 fromthe prior year. The Enterprise Funds had restricted fund equity of $3,367,225 in capital assets but a funddeficit in unreserved of $258,234.

Internal Service Fund Net position of the Workers Compensation Fund increased from the prior year by$61,342 to total $1,400,344. Operating services received from charges for insurance and services toother funds were $487,451. Expenses amounted to $428,989.

GENERAL FUND BUDGETARY HIGHLIGHTS

Some of the significant budget variances were:

CATEGORY BUDGET ACTUAL VARIANCE COMMENTS

Federal Grant $33,230,908 $4,338,708 ($28,892,200)Grant funding budget for full projectsin current year, not over length ofgrants.

Other State Grants $4,690,631 $400,387 ($4,290,244)Grant funding budget for full projectsin current year, not over length ofgrants.

Public Safety ProfessionalServices

$2,610,671 $556,681 $2,053,990Over anticipated professional and notenough in prisoner expenditures

Community Services $2,011,000 $215,705 $1,899,455 Grant funding budgeted. Projects inprogress.

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December 31, 2012

Governmental Activities: 2011 2012

Capital assets not being depreciated:

Land $1,076,269 $1,486,401

Construction in progress 21,049,049 15,114,93022,125,318 16,601,331

Buildings 30,547,209 33,585,886

Infrastructure 96,452,852 106,610,769

Drainage projects 2,369,867 2,464,790

Pumps & Sewerage 28,865,046 32,610,612

Equipment & Furniture 4,570,721 7,411,059

Vehicles 8,273,611 8,558,656

171,079,306 191,241,772

Total cost of assets 193,204,624 207,843,103

Less accumulated depreciation for:

Buildings 6,427,516 7,238,270

Infrastructure 77,200,974 84,296,255

Improvements 995,375 1,169,104

Pumps 27,633,619 29,012,407

Equipment & Furniture 3,437,189 4,409,408

Vehicles 5,558,866 6,045,301

121,253,539 132,170,745

Net Capital Assets-Governmental Activities $71,951,085 $ 75,672,358

Governmental Activitiesa summary of additions and deletions for capitalization of assets:

Additions

Land $ 410,132

Construction in progress 11,271,592

Buildings 3,038,677

Infrastructure 10,157,917

Drainage and other improvements 94,923

Pumps and sewerage 2,575,262

Equipment and furniture 1,020,799

Vehicles and equipment 616,608

Total additions $ 28,854,347Deletions & Adjustments

Construction in progress $ (133,011)

Pumps and sewerage 1,170,304

Equipment and furniture 1,819,538

Total deletions and adjustments $ 2,989,842

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December 31, 2012

Depreciation expense for governmental activities was charged to the following functions:

General Government $ 702,940

Public Safety 169,418

Public Works 8,878,184

Health & Community 58,184

Culture & Recreation 893,025

$ 10,702,250

Business-Type Activities There were $860,535 in additions and $25,865 in deletions in capital assetsthis year. Depreciation of $283,837 was recognized during the year.

Additional information on capital assets follows in Note 5. CAPITAL ASSETS in the financial report.

DEBT ADMINISTRATION

At the end of 2012 total bonded debt outstanding was $51,730,000. The debt represents bonds securedby specified revenue sources such as the general sales tax and ad valorem taxes. Payments of bondprincipal made during the year were $2,790,000.

Community Disaster Loan - With Resolution 05-247, adopted October 25, 2005 the Council approved theapplication for participating in the Community Disaster Loan Program administered by the Federal

Agency Department of Homeland Security for aid in relief from loss of revenue from the disasters ofHurricanes Katrina and Rita. The loan the proceeds of $5,462,053 that were received in 2006 - isconsidered a promissory note and the local government must pledge collateral security. The Parish haspledged revenues for each fiscal year while any portion of the note is outstanding, after provision hasbeen made for the payments required in connection with any outstanding bonded indebtedness. The

term of the loan is 5 years but may be extended. Payments of principal and interest may be deferred untilthe end of the 5 year period. Interest computed as the US Treasury rate for 5-year maturities on thedate the Promissory Note is executed accrues on the funds as they are disbursed. The Agency maycancel repayment of all or part of the loan if the revenues in the 3 fiscal years following the fiscal year ofthe disaster are insufficient to meet the operating budget because of disaster related revenue losses andun-reimbursed disaster related operating expenses or by Legislative Action. Currently there is legislationto cancel repayment of the loan and consider the funds a grant, and consequently we did not accrueinterest at the end of this year.

Additional information on long-term debt follows in Note 6. LONG-TERM DEBT in the financial report.

ECONOMIC FACTORS AND NEXT YEARS BUDGETS AND RATES

The 2013 Budgets have been prepared to maintain all individual funds with a positive fund balanceestimated for December 31st of 2013. The 2013 Budgets were enacted by the Assembled Council inregular session on November 27, 2012.

The 2013 Operations and Maintenance Budget was proposed at a value of $53,730,225 compared to a$91,097,124 final amended 2011 Budget and a current $83,540,997 amended 2012 Budget.

The 2013 Capital Budget adds $5,736,172 to new and existing projects for an estimated $35,411,449funding for proposed projects. Not included in this figure is a five-year capital budget projectiondemonstrating additional needs and scheduled capital improvements.

Estimated funding from General Sales Tax collections totals $13,050,000, and estimated ad valoremtax collections total $21,045,804.

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December 31, 2012

Combined funding from grants, state revenue sharing, fees, licenses, permits and other sources ofexpected revenue for 2013 total $23,989,888.

All debt service funds of the Parish are being maintained in good financial condition. Revenues areavailable to meet expenditures and debt services. The Parishs total outstanding debt as of December31, 2012, will be $51,730,000 and the combined total of annual principal plus interest debt service duein 2012 is $3,638,784.

CONTACTING MANAGEMENT

This financial report is designed to provide a general overview of the finances for all those with aninterest. Questions concerning any of the information provided in this report or requests for additionalinformation should be addressed to the following address or submitted via the website.

Department of Finance, Accounting DivisionPO Drawer 5548

Thibodaux, LA 70302

Complete copies of this document can be found on the Lafourche Parish Governments website:www.lafourchegov.org/lafourchegov/Departments_Finance.aspx and on the Louisiana Legislative

Auditors website:www.lla.state.la.us/audhome.htm.

38
http://www.lafourchegov.org/lafourchegov/Departments_Finance.aspxhttp://www.lafourchegov.org/lafourchegov/Departments_Finance.aspxhttp://www.lla.state.la.us/audhome.htmhttp://www.lla.state.la.us/audhome.htmhttp://www.lla.state.la.us/audhome.htmhttp://www.lla.state.la.us/audhome.htmhttp://www.lafourchegov.org/lafourchegov/Departments_Finance.aspx


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Basic Financial

Statements


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LAFOURCHE PARISH GOVERNMENTStatement of Net Position

December 31, 2012

Statement A

See notes to financial statements.

Component Units

Governmental Business TypeActivities Activities Total Total

ASSETS

Cash 29,220,752$ -$ 29,220,752$ 187,487,718$

Investments 20,786,558 - 20,786,558 23,742,039

Receivables 3,143,706 16,599 3,160,305 42,292,739

Due from Other Governmental Units 26,098,108 - 26,098,108

Prepaids and other assets 2,439,367 - 2,439,367 8,401,928

Capital Assets

Non-depreciable 16,601,331 16,601,331 29,927,075

Depreciable 59,071,027 3,367,225 62,438,252 197,449,066

Total assets 157,360,849 3,383,824 160,744,673 489,300,565

DEFERRED OUTFLOWS OF RESOURCES Ad valorem taxes receivable - - - 578,256

Due from Other Governments - taxes - - - 1,073,560

Total deferred outflows - - - 1,651,816

LIABILITIES

Accounts payable and accrued expenses 6,551,491 13,236 6,564,727 18,457,026

Other current liabilities 426,673 - 426,673 2,718,818

Accrued Interest Payable 566,111 - 566,111 -

Due to Other Governmental Units 320,566 261,597 582,163 -

Long-term liabilities

Due within one year 2,972,091 - 2,972,091 2,548,528

Due in more than one year 56,368,739 - 56,368,739 29,150,178

Total liabilities 67,205,671 274,833 67,480,504 52,874,550

DEFERRED INFLOWS OF RESOURCES Deferred revenue - ad valorem taxes - - - 2,042,905

Total liabilities - - - 2,042,905

NET POSITION

Net Invested in capital assets 51,147,600 3,367,225 54,514,825 199,242,530

Restricted for:

Capital Projects 31,164,521 - 31,164,521 1,809,871

Debt Service 7,271,751 - 7,271,751 2,656,703

Unrestricted (deficit) 571,306 (258,234) 313,072 232,325,822

Total net position 90,155,178$ 3,108,991$ 93,264,169$ 436,034,926$

Primary Government

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LAFOURCHE PARISH GOVERNMENTStatement of Activities

For the Year Ended December 31, 2012

Statement B


Expenses

Charges for

Services

OperatingGrants &

Contributions

Capital Grants &

Contributions

Governmental Activities:

General Government 5,036,536$ 3,363,685$ 11,305,897$ 681,279$

Public Safety 11,460,645 - - -

Public Works 23,984,200 74,785 1,746,474 2,801,018

Health & Community Services 7,100,316 38,970 4,717,525 -

Culture and Recreation 6,441,987 - 870,293 -

Interest and Fiscal Charges 2,125,313 - - -

Total governmental activities 56,148,997 3,477,440 18,640,189 3,482,297

Business-Type Activities:

Sewer 488,061 204,064 - 860,53556,637,058$ 3,681,504$ 18,640,189$ 4,342,832$

Component Units 188,932,058$ 194,612,113$ 55,188$ -$

Functions/Programs

Primary Government

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LAFOURCHE PARISH GOVERNMENTStatement of Activities

For the Year Ended December 31, 2012

Statement B


Component Units

Net (Expense)

RevenueGovernmental

Activities

Business-

Type Activities Total Total

Governmental Activities:

General Government 10,314,325$ -$ 10,314,325$ -

Public Safety (11,460,645) - (11,460,645) -

Public Works (19,361,923) - (19,361,923) -

Health & Community Services (2,343,821) - (2,343,821) -

Culture and Recreation (5,571,694) - (5,571,694) -

Interest and Fiscal Charges (2,125,313) - (2,125,313) -

Total governmental activities (30,549,071) - (30,549,071) -

Business-Type Activities:

Sewer - 576,538 576,538Total governmental activities (30,549,071) 576,538 (29,972,533)

Component Units 5,735,243$

General revenues

Taxes:

Ad Valorem 22,534,813 - 22,534,813 14,137,177

Sales 10,642,774 - 10,642,774 588,601

Other 2,405,971 - 2,405,971 -

Interest and investment earnings 48,500 - 48,500 514,589

Grants not restricted to specific programs - - - 5,923,974

Other 236,939 - 236,939 4,573,537

Total general revenues 35,868,997 - 35,868,997 25,737,878

Changes in net assets 5,319,926 576,538 5,896,464 31,473,121

Net assets, beginning of year 83,967,443 2,532,453 86,499,896 404,561,805

Adjustment to Beginning Net Asset 867,809 - 867,809 -

Net assets, beginning - restated 84,835,252 2,532,453 87,367,705 404,561,805

Net assets, end of year 90,155,178$ 3,108,991$ 93,264,169$ 436,034,926$

Primary Government

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Balance Sheet - Governmental FundsDecember 31, 2012

Statement C


001 107 119 206

General Solid Waste

Library

Commission

RoadConstruction

Dist 3, 5, 6

Cash and Cash Equivalents 1,561,591$ -$ 1,440,397$ 22,156,816$

Investments 91 215,067 6,747,954 11,690

Receivables 2,103,079 - 27 -

Due from Other Governmental Units 3,099,949 1,746,138 4,713,719 -

Due from Other Funds 11,284,703 - - 655,106

Other current assets 52,025 - - -

Prepaid Assets 133,109 - - -

TOTAL ASSETS 18,234,547$ 1,961,205$ 12,902,097$ 22,823,612$

Accounts payable and accrued expenses 420,114$ 1,171,109$ 54,954$ 1,135,474$

Contracts and Retainages Payable - - - 60,038

Salaries and Benefits Payable 261,805 8,726 131,439 -

Due to Other Funds 15,449,255 36,691 49,362 -

Due to Other Governmental Units 234,287 - - -

Other Current Liabilities - - - -

TOTAL LIABILITIES 16,365,461 1,216,526 235,755 1,195,512

Non-spendable for Prepaid Assets 133,109 - - -

Restricted:

Capital Projects - - - 21,628,100

Judicial - - - -

Federal and State Grant Programs - - - -

Debt Service - - - -

Committed:

Public Safety - - - -

Public Works - 744,679 - -

Culture and Recreation - - 12,666,342 -

Health and Community Services - - - -

Unassigned 1,735,977 - - -

TOTAL FUND BALANCES 1,869,086 744,679 12,666,342 21,628,100

TOTAL LIABILITIES AND FUND BALANCES 18,234,547$ 1,961,205$ 12,902,097$ 22,823,612$

ASSETS

LIABILITIES

FUND BALANCES

Major Funds

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Balance Sheet - Governmental FundsDecember 31, 2012

Statement C


Non-Major

Funds Total

4,040,435$ 29,199,239$

13,426,575 20,401,377

1,038,982 3,142,088

16,538,302 26,098,108

11,252,167 23,191,976

931,189 983,214

- 133,109

47,227,650$ 103,149,111$

2,481,730$ 5,263,381$

199,002 259,040

526,466 928,436

7,426,290 22,961,598

86,279 320,566

426,673 426,673

11,146,440 30,159,694

- 133,109

9,536,421 31,164,521

2,458,353 2,458,353

773,557 773,557

7,271,751 7,271,751

1,737,990 1,737,990

10,830,734 11,575,413

2,489,056 15,155,398

1,280,191 1,280,191

(296,843) 1,439,134

36,081,210 72,989,417

47,227,650$ 103,149,111$

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LAFOURCHE PARISH GOVERNMENTReconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position

December 31, 2012

Statement D


Total fund balance - governmental funds 72,989,417$

Capital assets used in governmental activities are not financial resources and therefore

are not reported in the governmental funds:

Cost of non-depreciable capital assets 16,601,331$

Cost of depreciable capital assets 191,241,772

Accumulated Depreciation (132,170,745)

75,672,358

The assets and liabilities of the workers compensation internal service fund are included

in the governmental activities in the statement of net assets. 1,400,344

Net accrued interest expense for bonds are not reported in the funds:

Accrued interest payable (566,111)

Long-term liabilities are not due and payable in the current period and therefore are not

reported in the funds.

Bonds Payable:

Premium on bond payable (1,649,273)

Due within one year (2,915,000)

Due in more than one year (48,815,000)

(53,379,273)

Community Disaster Loan Payable (5,462,053)

Compensated absences:

Due within one year (57,091)

Due in more than one year (442,413)

(499,504)

Net position- governmental activities 90,155,178$

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LAFOURCHE PARISH GOVERNMENTStatement of Revenues, Expenditures, and Changes in Fund Balances

Governmental FundsFor the Year Ended December 31, 2012

Statement E


001 107 119 206

REVENUES General Solid Waste

Library

Commission

RoadConstruction

Dist 3, 5, 6

Taxes:

Ad Valorem 1,977,612$ -$ 4,641,993$ -$

Sales - 6,916,106 - -

Other 2,404,138 - - 1,833

Intergovernmental from:

Federal Government 4,338,708 1,082,176 - -

State Government 810,789 - 122,524 -

Local Government - - 10,500 -

Charges for Services 2,405,657 1,710 19,065 -

Fines and Forfeitures 68,304 - 17,377 -

Investment Income 8,657 2,117 12,213 -

Other 100,859 - 48,740 -Total Revenues 12,114,724 8,002,109 4,872,412 1,833

EXPENDITURES

Current :

General Government 5,754,969 - - -

Public Safety 2,582,461 - - -

Public Works 535,774 8,690,873 - 164

Community Services 215,705 - - -

Culture and Recreation - - 3,845,399 -

Capital Outlay - - 30,753 1,778,810

Debt Service

Principal - - - -

Interest - - - -

Total Expend

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