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CADDO PARr^H FIRE D ^ T P I O T ^fp 7

QILCITY lOTiisiANA

FINANCIAL STATEMENTS

December-^I, 9nII

Under provisions of siate law, this report is a public document Acopy cf the report has been submitted to the entity and other appropriate public officials The report is available for public inspection at the Baton Rouge office of the Legislative Auditor ar\6 where appropnate at the office ofthe parish clerk cf court

Release Date M ?. 0 2Q-ii

Marsha O. Millican A Professional Accounting Corporation

Shreveport. Louisiana

CADDO PARISH FIRE DISTRICT NO. 7 Oil City. Louisiana December 31,2011

TABLE OF CONTENTS

Page

Independent Auditor's Report . . . .. . . . 1-2

Management's Discussion and Analysis 3-7

Basic Financial Statements

Government Wide Financial Statements

Statement of Net Assets 8

Statement of Activities 9

Fund Financial Statements

Balance Sheet - Govemmental Funds 10

Reconciliation of Fund Balances on the Balance Sheets for Govemmental Funds to Net Assets of Govemmental Activities on the Statement of Net Assets . . II

Statement ofRevenues, Expenditures and Changes in Fund Balances - Governmental Funds . . . 12

Reconciliation ofthe Statement ofRevenues, Expenditures and Changes in Fund Balances of Govemmental Funds to the Statement of Activities 13

Notes lo Financial Statements . . . 14-23

Required Supplementary Information

Schedule of Budgelary/G A AP Reporting Reconcihation - General Fund 24

Schedule ofRevenues, Expenditures and Changes in Fund Balances -

Balances - Budget and Actual (Cash Basis) - General Fund . . . 25

Other Supplememaiy Infonnation

Schedule of Compensation Paid to Commissioners 26

Independent Auditor's Report on Intemal Control over Finanical Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements in Accordance with Governmental Auditing Standards 27 - 28

CADDO PARISH FIRE DISTRICT NO. 7 Oil Citv. Louisiana December 31, 2011

TABLE OF CONTENTS

Corrective Action Taken on Prior Year Findings 29

Schedule of Findings and Questioned Costs 30

Marsha O. Millican A PROFESSIONAL ACCOUNTING CORRORATION

INDEPENDENT AUDFrOR'S REPORT

To the Menibers ofthe Board of Commissioners Caddo Parish Fire District No. 7 Oil City, Louisiana

I have audited the component unit financial statements of Caddo Parish Fire District No. 7, (the District) a component unit ofthe Caddo Parish Conunission, as ofand for the year ended December 31,2011, as listed in the table of contents. These financial statements are the responsibility ofthe Caddo Parish Fire District No. 7 s management. My responsibility is to express an opinion on these basic financial statements based on my audit

1 conducted my audit in accordance with auditing standards generaily accepted in the United Stales of Amenca and the standards applicable to financial audits contamed in Governmental Auditing Standards, issued by the Comptroller General ofthe United States Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion

In my opinion, the financial statements referred to above present fairly, in all matenal respects the position of the District of December 31,2011, and the respective changes in financial position for year then ended in conformity with accounting pnnciples generally accepted in the United States of Amenca.

The management's discussion and analysis and budgetary companson infonnation on pages 3 through 7 and 24 and 25, respectively, are not a required part ofthe basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. I have applied certain limited procedures, which consisted pnncipally of inquiries of management regardmg the methods of measurement and presentation of the supplementary information. However, I dtd not audit the information and express no opinion on It.

810 WlUKlNSON SHREVEPORT, L A 71 104-3036

(318) 221-3881 FAX (318) 221-4641

My audit was made for the purpose of expressing assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The information listed in the table of contents as other supplementary information is presented for purposes of additional analysis and is not a required part ofthe basic financial statements. Such in formation has been subjected to the auditing procedures applied in the audit ofthe basic financial statements and, in my opinion, is fairiy stated, in all material respects, in relation to the basic financial statements taken as a whole.

In accordance with Governmental Auditing Standards, I have also issued a report dated June 13, 2012 on my consideration of Caddo Parish Fire District No. 7' s intemal control over financial reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an mtegral part of an audit performed in accordance with Governmental Auditing Standards and should be read in conjunction vwth this report in considering the results of my audit.

Certified Public Accountant June 13, 2012

Danny Richardson

Fire Chief

Judy Nottingham Administrative Assistant

Todd Cowan Chief of EMS

Caddo Parish Fire District Seven 300 North Hwy. One on city. Louisiana 71061

(318)995-7114 Fax (318)9954)088

COMMISSIONERS:

James Alexander Neicy Bass John Davis Teny Middleton Joey Ryan Kevin Stewart

MANAGEMENT'S DISCUSSION AND ANALVSIS

This'section of Caddo Parish Fire District No. 7's annual financial report presents our discussion and analysis of the District's financial performance during the fiscal year that ended on December 31, 2011. Please read it in conjunction with the District's financial statements, which follow this section.

FINANCIAL HIGHLIGHTS

The Distnct had total net assets of $2,590,545 at year end which represents an increase from the prior year of $ 104,233.

OVERVIEW OF THE FINANCIAL STATEMENTS

These financial statements consist of the following - Management's Discussion and Analysis (this sectton), the basic fmancial statements, and Notes to Financial Statements These components are described below:

Basic Financial Statements

This annual report consists of a series of financial statements. The Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Net Assets, and Cash Flows provide information about the activities of the District as a whole and present a longer-term view of the District's finances. These statements include all assets and liabilities using the accrual basis of accounUng, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken mto account regardless of when cash is received or paid.

The Statement of Net Assets and the Statement of Revenues, Expenses, and Changes in Net Assets report the District's net assets and changes in them You can think of the District's net assets, the difference between assets and liabilities, as one way to measure the District's financial health, or financial position Over time, increases or decreases in the District's net assets are one indicator of whether its financial health ts improving or deteriorating.

FINANCL\L ANALYSIS OF THE ENTITY

Net Assets

Net assets may serve over time as a useful indicator of the District's financial position. The District's assets exceeded liabilities by $2,590,545 as ofDecember 31,2011

The District's major assets are its fixed assets of $970,142 representing its mvestment in capital assets such as land, buildings and improvements, equipment and fiimiture, less the related debt used to acquire those assets that is still outstanding. The District owed $119,434 at year end on the debt used to acquire those assets that is still outstanding The District uses these capital assets to provide services to the citizens of the District, consequently, these assets are not available for future spending. Revenues needed to repay die related debt will be provided through tax assessments on property located within the Distnct

Caddo Parish Fire District No. 7's Net Assets December 31,

2M1 2010

Cunent assets Capital assets

Total Assets

Current liabilities Noncunent liabilities

Total liabtliues

Invested in capital assets, net of related debt

Reserved Unreserved

Total net assets

$

$

1.748,876 970,142

2,719,018

40,732 87,741

128,473

850,208 -

1,740,337

2,590,545

$

±__

1,914,308 1.044.998 2,959,306

49,001 119,394 168,395

894,841 39,203

1,856,867

2,790,911

Changes in Net Assets

The District's net assets increased by $104,233 or 4% dunng the year ended December 31, 2011. Approximately 74% ($871,862) of the District's total revenue was derived through property taxes, while approximately 17% ($195,677) was derived through charges for services (stmcture fees) Expenses incurred by the District are primarily for the provision of fire protection and emergency medical treatment to the citizens ofthe District. Approximately 61% ($599,071) of the District's expenses are for salaries and related payroll taxes and employee benefits.

In 2011, govemmental activity revenue exceeded expenses, resulting in an mcrease in net assets of$l04,233.

Caddo Parish Fire District No. 7's Changes in Net Assets For tbe Year Ended December 31,

2011 2010

Revenues: Program revenues-

Charges for services General revenues:

Property taxes Other

Total revenues

Expenses: Public safety - fire protection Interest on long-term debt

Total expenses

Increase (Decrease) m net assets

S

$

195,677

871,862 106.972

1,174.511

1,063,484 6,794

1,070,278

104,233

$

J

163,627

874,222 83.540

1,121.389

914,105 3,674

917.779

203,610

FINANCIAL ANALYSIS OF THE DISTR1CT*S INDIVIDUAL FUNDS

As noted earlier, the District uses fimd accounting to ensure and demonstrate comphance with finance-related legal requirements

Governmental Funds

The focus of the Distnct's govemmental funds is to provide information on the near-term inflows, outfiows. and balances of spendable resources. Such infonnation is useful in assessing the District's financing requirements. In particular, unreserved fund balance may serve as a usefiil measure ofthe District's net resources available for spending at the end ofthe year

As of the end of the current year, the District's govemmental funds reported combined ending fund balances of $1,698,207.

Of the total fund balance at year end, $1,159,472 is unreserved and available for spending in the coming year.

The general fund is the chief operating fund of the District. As a measure of the general fxind's liquidity, it may be useful to compare the unreserved fund balance to total fund expenditures The fund balance of the general fund increased by $106,736 dunng 2011

GENERAL FUND BUDGETARY HIGHLIGHTS

Formal budgetary integration is employed as a management control device during the fiscal year. The budget policy of the Distnct complies with state taw, as amended, and as set forth in Louisiana Revised Statutes Title 39, Chapter 9, Louisiana Local Govemment Budget Act (LSA-R.S 39*1301 etseq)

The District's budget was amended during 2011.

The actual expenditures were $2,915 less than budgeted; and the actual revenues exceeded budgeted revenue by $1,895.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

The District's investment in capital assets for its govemmental activities as of December 31, 2011, totaled $2,405,404, net of accumulated depreciation of $1,455,264, leaving a book value of $970,142 This investment in capital assets includes fire stations (land, buildings and improvements), fire trucks, emergency response vehicles, fire fighting and rescue equipment, office equipment and fumiture (equipment and fumiture)

Actual costs to purchase capital assets was $55,429 for the year. Depreciation charges for the year totaled $126,049

Debt Administration

The District reduced its long term debt by $30,723 during the year ended December 31.2011.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES

The following economic factors were considered when the budget for the fiscal year ended December 31,2012 was prepared.

Revenues are expected to stay consistent for 2012.

REOUESTS FOR INFORMATION

This financial report is designed to provide a general overview of the finances of the Caddo Parish Fire District No. 7 for all of the District's citizens, taxpayers, investors, and creditors. This financial report seeks to demonstrate the District's accountability for the money it receives Questions conceming any of the information provided in this report or requests for additional information should be addressed to Mr. Kelvin Kennedy, Chairman, Caddo Pansh Fire Diso-ict No 7, PO Box 100, Oil City, Louisiana 7106 lor by calling (318) 995-7114.

CADDO PARISH FIRE DISTRICT NO. 7

Statement of Net Assets

December 31,2011

ASSETS Current Assets Cash Ad valorem taxes receivable Service fees receivable Prepaid insurance

Total Current Assets

Noncurrent Assets Capital Assets, net

Total Noncurrent Assets

Other Assets Bond Costs Deposits

Total Other Assets

Total Assets

$ 693.555 856.136 157,155 38,660

1,745,506

970,142

970.142

3,295 75

3,370

$ 2,719,018

LIABILITIES AND FUND BALANCES Current Liabilities

Accounts payable and accruals Current portion of long term debt

Total Current Liabilities

Long Term Liabilities Long term debt

Total Liabilities

Fund Balances Invested in capital assets, net of related debt Unreserved

Total Net Assets

Total Liabilities and Net Assets

8.539 32.193

40.732

87.741

128.473

850.208 1,740,337

2,590,545

$ 2,719.018

The accompanying notes are an integral part of this statement

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CADDO PARISH FIRE DISTRICT NO. 7 Balance Sheets

Govemmental Funds December 31.2011

ASSETS Cash Ad valorem taxes receivable Service fees receivable Prepaid insurance Deposits

Total Assets

693.555 856.136 157.155 38.660

75

$ 1.745,581

LIABILITIES AND FUND BALANCES Liabilities

Accounts payable and accruals Deferred revenue

Total Liabilities

8.539 38.835

47,374

Fund Balances Nonspendable

Prepaid insurance Deposits

Assigned for capital assets Unassigned

Total Net Assets

Total Liabilities and Fund Balances

38.660 75

500.000 1.159,472

1.698,207

$ 1.745.581

The notes to the financial statements are an integral part of this statement.

10

CADDO PARISH FIRE DISTRICT NO. 7

Reconciliation of Fund Balances on the Balance Sheets for Govemmental Funds to Net Assets of

Govemmental Activities on the Statement of Net Assets For the Year Ended December 31. 2011

Fund Balances - Total Govemmental Funds 1,698,207

Amounts reported for govemmental activities in the statement of net assets are different because

Capital assets used in govenmental activities are not financial resources and therefore are not reported in the funds

Add Capital Assets 2.425.406 Deduct Accumulated Depreciation (1,455.264) Add Bond Issuance Costs 3,295

Certain liabilities, such as bonds payable, are not due and payable in the cun'ent penod and therefore are not reported in the funds

Deduct Certificates of Indebtedness (119,934)

Other long temi assets are jnot available to pay for current penod expenditures and are deferred in the funds 36.835

Net Assets of Govemmental Acftmties $ 2.590,545

The notes to financial statements are an integral part of this statement.

11

CADDO PARISH FIRE DISTRICT NO. 7

STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUND

FOR THE YEAR ENDED DECEMBER 31. 2011

Revenues: Ad valorem taxes $ 839,241 Service fees 189.464 State fire insurance rebate 22,525 State revenue sharing 9,405 State supplemental pay 48.633 Miscellaneous 15.064 Interest eamed 11.345

Total Revenues 1.135.677

Expenditures: Current.

Fire protection 991.424 Debt service

Pnncipal 30.723 Interest 6.794

Total Expendittires 1.028,941

Changes in Hind balance before other financing sources 106,736

Other financing sources Proceeds from certificates of indebtedness

Net changes in fimd balance 106,736

Fund Balance. Beginning of Year, as

previously reported 1,896.070

Prior Period Adjustment (Note 13) (304,599)

Fund Balance. Restated 1,591.471

Fund Balances, End of Year $ 1,698.207

The notes to the financial statements are an integral part of this report.

12

CADDO PARISH FIRE DISTRICT NO. 7

Reconciliation of the Statement of Revenues. Expenditures, and Changes in Fund Balances

of Govemmental Funds to the Statement of Activities Year Ended December 31,2011

Amounts reported for govemmental activities in the statement of activities are different because

Net Change in Fund Balances - Total Govemmental Funds $ 106,736

Govemmental Funds report capital outlays as expenditures However, in the statement of activnties the cost of these assets IS allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation ($126,049) exceeds capital outlay ($55,429) (70,620)

Amortization of bond costs (941)

Revenues m the statement of activities that do not provide current financial resources are not reported as revenues in the funds This is the net efffect of pnor year and cunrent year defen-ed revenue 38,335

Repayment of debt principal is an expendiure in the govemmental funds, but the repayment reduces long temn liabilities in the statement of net assets and does not result in an expense tn the staiement oif activities 30,723

Change in Net Assets of Govemmental Activities $ 104,233

The notes to the financial statements are an integral part of this report

13

CADDO PARISH FIRE DISTRICT NO. 7

Notes to Financial Statements

December 31,2011

INTRODUCTION

The Caddo Pansh Fire District No 7 ("the District") was created by the Caddo Parish Commission by

ordinance as provided under the Louisiana Revised Statutes 40.1492-501 The District is a component

of the Caddo Parish Commission and is govemed by a board of commissioners, who are appointed by the

Caddo Parish Commission The purpose of the District is to provide fire protection and emergency services

to the residents ofthe District.

I. Summary of Signiflcant Accounting Policies:

The accompanying financial statements of the District have been prepared in conformity with

generally accepted accounting principles as prescnbed by the Govemmental Accounting

Standards Board (GASB). In June, 1999 the GASB issued Statement 34, Basic Financial

Statements • and Management's Discussion and Analysis - for State and Local Governments,

and Statement 35, Basic Financial Statements - and Management's Discttsston and Analysts -

for Public Colleges and Universities These Statements establish new financial reporting

requirements for state and local govemments and public colleges and universities throughout

the United States They require new infomiation and restructure much of the information that

govemments have presented in the past Comparability with reports issued m pnor years is

affected.

The Distnct has implemented GASB Siatement No 34. Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, GASB Statement No. 37, Baste Financial Statements - and Management's Discussion and Analysis -for State and Local Governments, Omnibus; GASB Statement No 38, Certain Financial Statement Note Disclosures, and Govemment Accounting Standards Board Interpretation No 6, Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements

Reportmg Entity

The basic cntenon for determining whether a govemmental department, agency, institution, commission, public authonty. or other govemmental organization should be included in a primary governmental unit's reporting entity is financial accountability The Govemmental Accounting Standards Board has set forth cnteria to be considered in determining financial accountability These cntena include appointmg a voting majonty of an organization's goveming body and (1) the ability of the pnmary government to impose its will on that organization or (2) the potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the pnmary govemment

The Distt-ict IS a component unit of the Caddo Parish Commission, the financial reporting

entity The Commission is financially accountable for the Distnct because it appoints a voting

majority ofthe board and has the ability to impose its will on the Distnci

The accompanying financial statements present informanon only on the funds maintained by

the DisD-ict and do not present information on the Commission, the general govemment

services provided by that govenunental unit, or the oilier govemmental units that comprise the

financial reporting entity

14

CADDO PARISH FIRE DISTRICT NO. 7

Notes to Financial Suitements

December 31.2011

Suttvnary of Significant Accounting Policies (continued}:

Government-Wide and Fund Financial Statements

The govemment-wide financial statements (the statement of net assets and the statement of activities) report informanon of all nonfiduciary activities of the District The statement of activities demonstrates the degree lo which the direct expenses of a given function segment, or component unit are offset by program revenues. Direct expenses are those dial are cleariy identifiable with a specific function, segment or component unit Program revenues include charges to customers who purchase, use or directly benefit from goods, services, or pnvileges provided by a given function, segment or component unit Program revenues include grants and contributions dial are restncted to meetmg the operational or capital requirements of a particular function, segment or component unit Taxes and other items not properly mcluded among program revenues are reported instead as general revenues. The Disbict consists of one program - fire protection

Govemmental fund financial statements are provided for the Distnct. The District consists of three govemmental hinds

Measurement Focus, Basts of Accounting and Financial Statement Presentation

Govemment-Wide Accounting - In accordance with Govemment Accounting Standards Board Statement no 34, the District has presented a Statement of Net Assets and a Statement of Activities for the Distnct as a whole. Govemment-wide accounting is designed to provide a more comprehensive view of the govemment's operations and financial position as a single economic entity

Policies specific to the govemment-wide statements ere as follows:

Eliminating Internal Activity - Interfiind receivables and payables are eliminated in the Statement of Net Assets

Application of FASB Statements and Interpretations - Reporting on governmental-type and business-type activities are based on FASB Statements and Interpretations issued after November 30,1989, except where they conflict or contradict GASB pronouncemenls

Capitalizing Assets - Tangible or intangible assets used in operations with an initial useful life that extends beyond one year are capitalized Equipment, furniture and fixtures, and buildings are recorded at their historical costs and are depreciated using the straight-line method of depreciation over their estimated useful lives They are reported net of accumulated depreciation on the Siatement of Net Assets

Program Re\'enues - The Siatemeni of Activities presents two categories of program revenues-(1) charges for services, and (2) operating grants and contnbutions

Charges for services are those revenues arising from exchange or exchange-like transactions with extemal parties that purchase, use or directly benefit from the program goods, services or privileges. Service charges (structure fees) are reported as charges for services

Operating grants and contributions, whether operating or capital in nature, are revenues arising from receipts that are restncted for operating purposes of a program Supplemental salaries paid to the firefighters by the State of Louisiana, slate revenue sharing, and fire insurance rebates are reported as operating grants and contributions

15

CADDO PARISH FIRE DISTRICT NO. 7

Notes to Financial Statements

December 31.2011

Summary of Signiflcant Accoimting Policies (continued):

Measurement Focus, Basis of Accounting and Financial Statement Presentation (continued)

Restricted Net Assets - Restncted net assets are those for which a constraint has been imposed either extemally of by law Resources restricted for a specific purpose are exhausted before unrestncted net assels are used

Govemment-Wide Financial Statements - The govemment-wide financial statements are reported using the economic resources measurement focus and the accmal basis of accounung Revenues are recorded when eamed and expenses are recorded when a liability is incurred, regardless of the dming of the related cash fiows Grants and similar items are recognized as revenue as soon as all eligibility requirements unposed by the provider have been met.

Govemment Fund Financial Statements - The governmental financial statements are reported using the current financial resources measurement focus and the modified accmal basis of accounting Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when diey are collectible within the current period or soon enough thereafter to pay liabilities of die current period For this purpose, the District considers revenues to be available if they are collected within 60 days ofthe end ofthe current fiscal year. Principal revenue sources considered to be susceptible to accmal include property laxes, service fees, and interest on investments. Other revenues are considered to be measurable and available only when cash is recewed by the District

Expenditures generally are recorded when a liability is incurred, as under accmal accounting Modifications to the accmal basis of accouniing include

Interest on general long-term obligations is recognized when paid

Fund Accounting

Ttie financial activities of the District are recorded in individual funds, each of which is deemed to be a separate accounting entity. The District uses fund accountmg to report on its financial position and the results of its operations. Fund accounting is designed to demonsu^te legal compliance and to aid financial management by segreganng transactions relating to certain govemment functions or activities. A fund is a separate accountmg entity with a self-balancmg set of accounts

Funds of the Distnct are classified as govemmental funds Govemmental funds account for the DisUict's general activities, including collection and disbursement of specific or legally restricted monies, the acquisition, construction or improvement of capital assets, and the servicing of long-term debt Govemmental ftinds ofthe Distnct include-

General Fund - the general operating ftind of the District and accounts for all financial resources, except those required to be accounted for in other hinds

16

CADDO PARISH FIRE DISTRICT NO. 7

Notes to Financial Statements December 31,2011

Summary of Signiflcant Accounting Policies (continued):

Budget and Budgetary Control

A budget for the ensuing year is prepared by the fire chief and approved by the board of commissioners pnor to December 31st of each year The proposed budget is prepared on a cash basis of accountmg Uiat is a comprehensive basis of accounting other than Generally Accepted Accounting Principles (GAAP) The budget is legally adopted and amended, as necessary, by the board of commissioners The board reserves all authority to make changes to the budgets Unexpended appropnations lapse at year end and must be re-appropnated in the next year's budget to be expended The budget was amended in 2009

Fomial integration of the budget into the accountmg records is employed as a management control device Budget amounts included m the accompanying financial statements mclude the original adopted budget and all subsequent amendments

Cosh and Cash Equivalents

Cash includes amounts in demand deposits and mterest-bearing demand deposits Cash equivalents include amounts in time deposits and those investments with onginal matunties of 90 days or less when purchased Under state law, the Distnct may deposit funds in demand deposits, interest-bearing demand deposits, or time deposits with state banks organized under Louisiana law or any other state of the United States, or under the laws of the United States

Use of Estimates

The preparation of financial statements generally requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expendmires during a reporting penod Actual results could differ from those estimates

Capital Assets

The District's assets are recorded at histoncal cost Capital assets are recorded as expend-tures m the govemmental financial statements Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized, Other costs incurred for repairs and maintenance are charged to expense as incurred Depreciation expense is recorded in the govemment-wide financial statements using the straight-line method over the usefiil lives of the assets All assets of the District are reported in the accompanying financial statements

17

CADDO PARISH FIRE DISTRICT NO. 7

Notes to Financial Statements

December 31.2011

Summary of Signiflcant Accounting Policies (continued):

Long-term obligations

In the govemment-wide statements, debt prmcipal payments of bodi govermnent and business-type activities are reported as decreases in the balance of the liability reported on the Statement of Net Assets. In the ftind financial statements, debt pnncipal payments of the govemmental fimds are recognized as expenditures when paid

Receivables

Accounts receivable in all ftinds report amounts ihat have ansen m the ordinary course of business

Govemmental ftind type receivables consist primanly of amounts due for property taxes and charges for service (structure fees and ambulance fees)

Net Assets/Fund Balances

In die Statement of Net Assets, the differences between a govemment's assets and liabilities

are recorded as net assets The three components of net assets are as follows

Invested in Capital Assets, Net of Related Debt - Tins category records capital assets net of accumulated depreciation and reduced by any outstanding balances of bonds, mortgages, notes or other borrowing attnbutable to the acquisition, constmction, or improvement of capital assets

Restricted Net Assets - This category records net assets that are restncted by external sources such as banks or by law are reported separately as resmcted net assets

Unrestricted Net Assets - This categoiy represents net assets not appropnable for expendiiures or legally separated for a specific fiiture use

In the Balance Sheet of govemmental funds, ftmd balances are segregated as follows*

Nonspendable -This classification includes amounts that cannot be spent that are not in spendable form or legalluy required to be maintained intact

Unassigned - This classification is die residual fund balance for the General Fund It represents ftind balance that has not been assigned to other ftmds and that has not been restncted. committed, or assigned to specific purposes

18

CADDO PARISH FIRE DISTRICT NO. 7

Notes to Financial Statements

December 31,2011

2. Cash and Casit Equivalents:

At December 31. 2011. the Distnct has cash and cash equivalents (including petty cash of S300) as follows-

Bank Book Balances Balances

Interest-bearing demand deposits $ 695,262 $ 693.555

These deposits are stated at cost, which approximates market Under state law, these deposits must be secured by federal deposit insurance or the pledge of secunties owned by the fiscal agent bank. The market value of the pledged securities plus the federal deposits insurance must at all times equal the amount on deposit with the fiscal agent These securities are held in die name of die pledging fiscal agent bank that is mutually acceptable to both parties At December3l. 2011, deposits of $351,520 were insured by FDIC insurance and deposits of$343,742 were collateralized by securities pledged to the District's account by the custodial bank

i . Ad Valorem Taxes and Structure Fees:

The District levies taxes on real and business personal property within its boundanes on November 1st of each year Property taxes are due before December 31st and attach as an en-forceable lien on property as of January 1st ofthe following year

The DisUict collects a (20) mill avalorem tax The purpose of the tax is for maintaining and operating fire protection facilities, purchasing fire tmcks and other fire fightmg equipment, and paying die cost of obtaining water for fire protection purposes, including charges for fire hydrant rentals and services

For the year ended December 31. 2011 total ad valorem taxes of 20 mills were levied on property with assessed valuations totaling $44,123,8 after the application of homestead exemptions and adjudicated property. Total taxes levied at December 31. 2011 for operations were £882.478

The voters of the Dismct also approved the levying of a $60 service charge (stmcture fee) for each residential or commercial stmcture Total service charges levied at December 31. 2011. were $166,680

19

CADDO PARISH FIRE DISTRICT NO- 7

Notes lo Financial Statements December 31.2011

Receivables:

A summary of receivables at December 31,2011, follows.

Adalorem Taxes Sevice Fees

Capital Assets:

Capital asset activity for the year ended December 31,2011 was as follows.

Receivable

$ 882.337 166.554

£ 1,013,291

Allowance Account

$ (26.201) (9.399)

$ (9.399)

Net Receivable

$ 856.136 157.155

$ 1.003.892

Govemment activities

Capital assets, being depreciated.

Buildings & improvements Equipment & fumiture

Total

Less accumulated depreciation Buildings & improvements Equipment & fumiture

Total Und

Net capital assets

Begmning Balance

$ 736.140 1.659.733 2,395,873

(322,283) (1.052.830) (1.375.113)

20,002

$ 1,040,762

Net Additions

$ 9.531

9.531

(10^54) (69.897) (80,151)

-

$ (70.620)

Ending Balance

$ 736.140 1,669.264 2.405.404

(332.537) (M22,727) (1,455.264)

20,002

$ 970.142

Total additions for die year ended December 31.2011 were $55,429.

Fully depreciated renrements for the year ended December 31,2011 were $45,898

Depreciation expense for die year ended December 31.20 M was $ 126.049

20

CADDO PARISH FIRE DISTRICT NO. 7

Notes to Financial Statements December 31,2011

6. Risk Management:

The District is exposed to various nsks of loss related to torts, dieft or, damage to and destruction of assets; errors and omissions; injunes to employees; and namral disasters The District cames commercial insurance for all nsks of loss, including wodcers' compensation There were no significant reductions m insurance coverage from the pnor year

7. Pension Plan:

Firefighter's Retirement Svstem ofLouisiana

Plan Description

Substantially all employees of the District are members of die Louisiana Firefighters' Retirement System, a cost-sharing, muldple-employer defined benefit pension plan administered by a separate board of trustees

Membership in the Louisiana Firefighters' Retirement System is mandatory for all fltll-time firefighters employed by a municipality, parish or fire protection district diat did not enact an ordinance before January I. 1980, exempung itself fi^m participation m the System Employees are eligible to retire at or after age 55 with at least 12 years of creditable service or at or after the age of 50 with at least 20 years of creditable service Upon retirement, members are entitled to a retirement benefit, payable monthly for life, equal to 3 1/3 percent of their final-average salary for each year of creditable service, not to exceed 100 percent of their final-average salary

Final-average salary is the employee's average salary over the 36 consecutive or joined months that produce the highest average. Employees who terminate with at least 12 years of service and do not withdraw their employee contributions may retire at age 55 (or at or after age 50 with at least 20 years of creditable service at temiination) and receive the benefit accmed to their date of termination The System also provides death and disability benefits. Benefits are established or amended by state statute.

The System issues an annual publicly available financial report that includes financial statements and required supplementary information for the System That report may be obtained by wnting to the Firefighters' Retirement System, Post Office Box 94095, Baton Rouge, Louisiana 70804. or by calling (225) 925-4060

Funding Policy

Plan members are required by state statute to contribute 10.0% of their annual covered salary' and the District is required to contribute at an actuanally determmed rate The employer contnbution rate ranges fix)m 21 50% of annual covered payroll to 23 75%. The contnbutions requirements of plan members and die District are established and may be amended by a state statute As provided by Louisiana Revised Statute 11 103, die employer contributions are determined by actuarial valuation and are subject to change each year based on the results of the valuation for die prior fiscal year The Distnct's contnbutions to the System for the year ending December 31. 2011. was $88,281 based on eligible wages of $478,404.

21

CADDO PARISH FIRE DISTRICT NO. 7

Notes to Financial Statements December 31,2011

Per Diem Paid to Commissioners:

Per diem paid to Commissioners for die year ended December 31, 2011 totaled $1,560

Long-Term Obligations:

Changes in long-term debt are as follows*

Balance

1/1/2011 $ 149,657 $ 149.657

Pnncipal Payments

$ (30.723) $ (30.723)

Balance 12/31/2011 $118,934 $118,934

Certificate of Indebtedness Totals

On June 23. 2010. the District issued certificates of indebtedness totaling $165,000 for the purpose of financing the costs associated widi die purchase of a fire tmck The certificates were issued with an interest rate of 4 55% Mondily payments are $3,137.

The annual requirements to amortize obligation bonds outstanding as of December 31, 2011. are as follows

Year Ending

2012 2013 2014

2015 Total

Principal

$ 32,193 33.688 35.254

17.799 $118,934

$

_L

Interest

4.766 3.270 1.705

243 9.984

$

_$__

Total

36.959 36,958 36,959 18.042

128,918

22

CADDO PARISH FIRE DISTRICT NO. 7

Notes to Financial Statements

December 31,2011

10, On-Behalf Payments for Fringe Beneflts and Salaries:

Supplemental salary payments are made by die State directly to certain firemen employed by the District GASB Statemem No 24 requires that on-behalf payments be recognized as both revenue and expenditure by an employer govemment entity In accordance with diis Statement, $48,633 has been recognized as both intergovemmental revenue (state supplemental pay) and salanes in the General Fund

IL Reconciliation of Differences between the Badgetary^Based Fund Financial Statements

and ihe CAAP-Based Fund Financial Statements:

As discussed in Note I. the budget is prepared on a cash basis of accounting However, die modified accmal basis of accounting is used for ftmd financial reportmg purposes m ac-cordance widi GAAP Exhibit 1 on page 24 is a reconciliation of revenues and expenditures recognized m accordance to the budgetary basis (cash basis) for die year ended December 31.2011

12. Subsequent Events:

Management has evaluated subsequent events dux)ugh June 13, 2012. the date die fiancial statements were available to be issued and determined diat no additional disclosures are warranted.

13, Prior Period Adjustment:

A prior penod adjustment has been made to begmning net assets and fiind balance to conrect errors in the prior year deemed to be matenal as follows

Taxes Receivable $317,324 Allowance for Uncollectible Taxes (53.448) Defen-ed Taxes 40.723

Total $ 304.599

23

CADDO PARISH FIRE DISTRICT NO. 7 Budgelarv/GAAP Reporting Reconciliaton

Revenues: Ad valorem taxes Sen/ice fees Intergovemmental

State fire insurance rebate State revenue shanng State supplemental pay

Interest eamed Miscellaneous Total revenues

Expenditures: Fire protection Capital outlay Debt sen/ice

Total expenditures

December 31, 2011

Budaetarv/GAAP Reoortina Reconciliation General Fund

Actual on GAAP Basis

$ 839.241 189.464

22,525 9.405

48.633 11,345 15,064

1.135,677

935.995 55,429 37,517

1,028,941

Adjustment to Budgetary

Basis

$ (145.776) (3.555)

--

5.727 (48.633)

--

(222,177)

(54.271) -

(500) (54.771)

Actual on Budgetary

Basis

S 693.465 161.696

22.525 9.405

-11.345 15.064

913.500

881.724 55.429 37,017

974.170

Changes in Fund Balance before Other Finanang Resources

Other Financing Sources Proceeds from Certficates of Indebtedness

Excess of Revenues Expenditures

Fund Balance, Beginning (Restated)

Fund Balance. Ending

106.736

106,736

1.591.471

1.698.207

(276.948)

(276.948)

(60,670)

(60.670)

24

CADDO PARISH FIRE DISTRICT NO. 7

Schedule ofRevenues, Expenditures and Changes in Fund Balances-Budget and Actual General Fund

For the Year Ended December 31,2011

Revenues Ad Valorem Taxes Intergovemmental revenues Structure fees

State fire insurance rebate State revenue shanng

Grants Interest earning Miscellaneous

Total revenues

Expenditures Current fire protection

Personal sen îces Operating services Matenals and supplies Travel and other Debt service Capital outlay

Total Expenditures

Changes in Fund Balance before Other Financing Sources

Other Financmg Sources Proceeds from certificates of Indebtedness

Excess Revenues Over Expenditures

Fund Balances. Beginning. Restated Fund Balances. Ending

Budgeted Original

S 692,820 159,645

21,625 9,475

-1.200 6,100

889.865

572.103 232,390

13.600 6.000

37.020 -

861,113

28.752

-

28.752

1.591.471 $ 1.620,223

Amounts Final

$ 693.325 161.63000

22,525 9.405

-9.700

15.020 911,605

600,490 262,990

19.455 3,900

34,955 49,465

971,255

(59.650)

-

(59,650)

1.591.471 $ 1.531.821

Actual

$ 693.465 161.696

22.525 9.405

-11.345 15.064

913.500

599,071 265,717

12.979 3,957

37.017 55.429

974,170

(60.670)

-

(60,670)

1.591.471 $ 1,530.801

Variance with Final

Budget Positive

(Neaatlve)

$ 140 66

---

1.645 44

1.895

1,419 (2.727) 6.476

(57) (2.062) (5.964) (2.915)

(1.020)

-

(1.020)

-$ (1.020)

25

CADDO PARISH FIRE DISTRICT NO. 7

Schedule of Compensation Paid to Commissioners

For the Year Ended December 31. 2011

Kelvin Kennedy Kevin Stewart John Davis James Home Neicy Bass Joey Ryan

Total

s

2_

300 300 240 60 360 300

j jeo

26

Marsha O. Millican A PROFESSIONAU ACCOUNTiNG CORPORATION

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

To the Members of die Board of Commissioners Caddo Parish Fire District No 7 Oil City. Louisiana

1 have audited the component unit financial statements of Caddo Parish Fire Distnct No 7 as ofand for die year ended December 31. 2011. and have issued my report thereon dated June 13. 2012. 1 conducted my audit in accordance with auditing standards generally accepted in the United States of Amenca and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General of the United States.

Intemal Control Over Financial Reporting

In planning and performing my audit. I considered Caddo Parish Fire District No. 7.'s intemal control over fmancial reporting as a basis for designing my auditing procedures for the purpose of expressing my opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's intemal control over financial reporting Accordingly, I do not express an opinion on the effectiveness of the District's intemal control over financial reporting.

A deficiency in intemal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A matenal weakness is a deficiency, or a combination of deficiencies, in mtemal control such that there is a reasonable possibility that a matenal misstatement ofthe District's financial statements will not be prevented, or detected on a timely basis.

My consideration of intemal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in intemal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses I did not identify any deficiencies in internal control over financial reporting that I consider to be material weaknesses, as defined above

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Caddo Pansh Fire District No 7's financial statements are ft-ee of material misstatement, I performed tests of iis compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of fmancial statement amounts However, providing an opinion on compliance with those provisions was not an objective of my audit and. accordingly. I do not express such an opinion. The results of my tests disclosed no instances of noncompliance or other matters that are required to be reported under Govemment Auditing Standards

a i O V\/ILKtNSON SHREVEPORT. L A 71 104-3036

(318) 221-3881 FAX (318) 221-464 1

27

This report is intended solely for the infonnation and use of management and federal and state awarding agencies and is not Intended to be and should not be used by anyone other than these specified parties.

A ^ p. ifhidf^

Certified Public Accountant June 13,2012

28

Caddo Parish Fire District No 7

Corrective Action Taken on Prior Year Findings

Year Ended December 31,2011

There were no findings for the year ended December 31,2010.

29

Caddo Parish Fire District No. 7

Schedule of Findings and Questioned Costs

Year Ended December 31,2011

1 The auditor's report expresses an unqualified opinion on the financial statements.

2 No significant deficiencies in intemal accounting control were disclosed dunng the audit were reported.

3. No instances of noncompliance material to the financial statements of die Distnct was disclosed during die audit

There were no findings for die year ended December 31,2011.

30