LAFOURCHE PARISH FIRE PROTECTION DISTRICT No. 1 ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2006 under provisions of state law, this report is a public document. Acopy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court. Release Date STAGNI & COMPANY, LLC
Transcript
LAFOURCHE PARISH FIRE PROTECTIONDISTRICT No. 1
ANNUAL FINANCIAL REPORTFOR THE YEAR ENDED DECEMBER 31, 2006
under provisions of state law, this report is a publicdocument. Acopy of the report has been submitted tothe entity and other appropriate public officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.
Release Date
STAGNI & COMPANY, LLC
Lafourche Parish Fire Protection District No. 1ANNUAL FINANCIAL REPORT
Statement of Net Assets 10Statement of Activities 11
Fund Financial Statements:Balance Sheet - Governmental Funds 12Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds 13Reconciliation of the Statement of Revenues, Expenditures, and Changes
In Fund Balances-Governmental Funds to the Statement of Activities 14Notes to the Financial Statements 15
REQUIRED SUPPLEMENTAL INFORMATIONBudgetary Comparison Schedule - General Fund 24Budgetary Comparison Schedule - Debt Service 25
REPORTS REQUIRED ACCORDING BY GAP
Report On Compliance And On Internal Control Over Financial ReportingBased On An Audit Of Basic Financial Statements PerformedIn Accordance With Government Auditing Standards 26
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 28
Lafourche Parish Fire Protection District No. 1MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2006
The following narrative is presented to facilitate a better understanding of the year-endfinancial position and results of operations for the year ended December 31, 2006. Whenread in conjunction with the notes to the financial statements, this section's financialhighlights, overview and analysis should assist the reader to gain a more completeknowledge of the financial performance.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of a series of financial statements. The Statement of NetAssets and the Statement of Activities provide information about the governmental activitiesas a whole and present a longer-term view of the finances. The Balance Sheet andStatement of Revenues, Expenditures and Changes in Fund Balance - GovernmentalFunds (Fund Financial Statements) tell how services were financed in the short term aswell as what remains for future spending. Fund financial statements also report theoperations in more detail than the government-wide statements by providing informationabout the most significant funds.
Our auditor has provided assurance in his independent auditor's report, locatedimmediately following this MD&A, that the basic financial statements are fairly stated. Theauditor, regarding the Required Supplemental Information and the Other SupplementalInformation is providing varying degrees of assurance. A user of this report should read theindependent auditor's report carefully to ascertain the level of assurance being provided foreach of the other parts in the Annual Report.
Government-Wide Financial Statements
One of the most important questions asked about finances is, "Is the Lafourche Parish FireProtection District No. 1 as a whole better off or worse off as a result of the year'sactivities?" The Statement of Net Assets and the Statement of Activities report informationas a whole and about activities in a way that helps answer this question. These statementsinclude all assets and liabilities using the accrual basis of accounting, which is similar to theaccounting used by most private-sector companies. All of the current year's revenues andexpenses are taken into account regardless of when cash is received or paid.
These two statements report the net assets and changes in them. You can think of netassets—the difference between assets and liabilities—as one way to measure the financialhealth, or financial position. Over time, increases or decreases in net assets are oneindicator of whether its financial health is improving or deteriorating. You will need toconsider other non-financial factors, however, to assess the overall health of the LafourcheParish Fire Protection District No. 1.
Lafourche Parish Fire Protection District No. 1MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2006
Fund Financial Statements
The fund financial statements provide detailed information about the most significantfunds—not as a whole. Some funds are required to be established by State laws. TheLafourche Parish Fire Protection District No. 1 utilizes mainly the governmental type of fundwith the following accounting approach. Most of the basic services are reported ingovernmental funds, which focus on how money flows into and out of those funds and thebalances left at year-end that are available for spending. These funds are reported using anaccounting method called modified accrual accounting, which measures cash and all otherfinancial assets that can readily be converted to cash. The governmental fund statementsprovide a detailed short-term view of the general government operations and the basicservices it provides. Governmental fund information helps you determine whether there aremore or fewer financial resources that can be spent in the near future to finance programs.We describe the relationship (or differences) between governmental activities (reported inthe Statement of Net Assets and the Statement of Activities) and governmental funds inreconciliation at the bottom of the fund financial statements.
FINANCIAL HIGHLIGHTS
Our financial statements provide these insights into the results of this year's operations:• As a result of this year's operations assets exceeded liabilities by $ 1,206,932 (net
assets).• Total net assets are comprised of the following:
(1) Invested in capital assets of $979,791 including the cost of trucks andequipment, net of accumulated depreciation and net of related debt.
(2) Restricted for debt service of $92,564.(3) Unrestricted net assets of $134,577 representing the portion available to
maintain the continuing obligations to citizens and creditors.• Total spending for all public safety activities was $341,050 for the year, which was
$277,526 more than the program revenues for these activities - $63,524.• The general revenues used to offset the deficit for program expenditures totaled
$412,168 for the year.• The governmental funds reported total ending fund balance of $223,065, of which
$130,501 was considered unreserved and $92,564 was considered reserved fordebt service. This compares to the prior year ending fund balance - of $202,228,showing an increase of $20,837 during the current year.
• Total revenue reported for all governmental funds was $475,692. Total expenditureswere $454,855, including $239,921 of capital expenditures and $64,552 of debtservice expenditures. This resulted in an excess of revenues over expenditures forthe year of $20,837.
Lafourche Parish Fire Protection District No. 1MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2006
FINANCIAL ANALYSIS AS A WHOLE (GWFS)
The Statement of Net Assets and the Statement of Activities report only one type of activity- governmental activities. Most of the basic public safety services are reported as thistype. General ad valorem taxes, State revenue sharing revenue, insurance rebates, andfees charged to the Lafourche Communication District for rent finance most of theseactivities.
Our analysis below focuses on the net assets of the governmental-type activities:
Condensed Statement of Net Assets
Current and Other AssetsCapital AssetsTotal Assets
Current LiabilitiesLong Term Liabilities
Total Liabilities
2006
592,1051>342.6411,934,746
419,814308.000
2005Dollar
Change
617,2901,270.8121,888.102
456,812359.000
(25,185)71.82946,644
(36,998)(51,000)
TotalPercentChange
-4.1%5.7%
727,814 815,812 (87.998)
2.5%
-8.1%-14.2%-10.8%
Invested in Capital AssetsRestricted
Unrestricted
Total Net Assets
979,79192,564
134.577$ 1,206,932
858,37151,589
162,330
$ 1,072,290
121,42040,975
(27,753)
$ 134,642
14.1%79.4%
-17.1%12.6%
Net assets increased by $134,642 as a result of this year's operations, which indicates thatthe overall financial position improved during the year. Unrestricted net assets—the part ofnet assets that can be used to finance day-to-day operations without constraintsestablished by debt covenants, enabling legislation, or other legal requirements—absorbedmost of the increase this year. The balance in net assets represents the accumulatedresults of all past years' operations.
Lafourche Parish Fire Protection District No. 1MANAGEMENTS DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2006
Condensed Statement of Activities
2006
$ 15,35348,171
167,598
173,452341,050
(277,526)
412,168
134,642
1,072,290
$1,206,932
2005
$ 14,29341,054
176,407
155,810332,217
(276,870)
388,583
111,713
960,577
$1,072,290
DollarChange
1,0607,117
(8,809)
17,6428,833
656
23,585
22,929
111,713
$134,642
TotalPercentChange
7.4%17.3%
-5.0%
11.3%2.7%
0.2%
6.1%
6.3%
11.6%
12.6%
Charges for ServicesOperating Grants and ContributionsProgram Expenses:
Current
Depreciation - unallocatedTotal program expenses
Net program income
General revenues
Change in Net Assets
Net Assets:
Beginning of the year
End of the year
Total revenues generated by governmental activities for the year were $475,692 ($63,524in program revenues and $412,168 in general revenues). The total cost of all public safetyprograms and services was $341,050.
FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS (FFS)
The Lafourche Parish Fire Protection District No. 1 uses funds to help it control andmanage money for particular purposes. Looking at individual funds helps you considerwhether the District is being accountable for the resources provided to it but may also giveyou more insight into the overall financial health.
The governmental funds reported a combined fund balance of $223,065. This reflects anincrease of $20,837 from last year. This increase is primarily the result of the events andprograms described within the analysis of the governmental activities.
Lafourche Parish Fire Protection District No. 1MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2006
Condensed Balance Sheet
Total Current Assets
Fund Equity:
Reserved
Unreserved
Total fund equityTotal Liabilities andEquity
Total Revenues
Expenditures:
Current
Capital Outlay
Debt ServiceTotal
Expenditures
Excess (Deficiency)Other Financing
Sources (Uses)
Fund Balance:
Beginning of the year
End of the year
2006
sets $588,029
ulities 364,964
92,564
130,501
ity 223,065nd
$588,029
2005
$605,599
403,371
51,589
150,639
202,228
$605,599
Total
Dollar Percent
Change Change
$(17,570)
(38,407)
40,975
(20,138)
20,837
$(17,570)
-2.9%
-9.5%
79.4%
-13.4%
10.3%
-2.9%
Condensed Statement of Revenues, Expenditures
and Changes in
2006
$475,692
150,382
239,921
64,552
454,855
;y) 20,838
)
iar 202,228
$223,066
Fund Balances
2005
$443,929
135,802
257,015
77,532
470,349
(26,420)
(93,000)
321,648
$202,228
Dollar
Change
31,763
14,580(17,094)
(12,980)
(15,494)
47,258
93,000
(119,420)
$20,837
Total
Percent
Change
7.2%
10.7%
-6.7%
-16.7%
-3.3%
-178.9%
-100.0%
-37.1%
10.3%
Lafourche Parish Fire Protection District No. 1MANAGEMENTS DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2006
GENERAL FUND BUDGETARY HIGHLIGHTS
There were no amendments to the original budget for the General Fund during the year.
CAPITAL ASSETS
The investment in capital assets, net of accumulated depreciation, for governmentalactivities as of December 31, 2006 and 2005 was $1,342,641 and $1,270,813 respectively.
This year there was $239,921 of additions and $25,041 of disposals (with a loss ondisposals of $3,787) and depreciation expense of $173,452. More detailed informationabout the capital assets is presented in Note 6 to the basic financial statements.
LONG-TERM DEBT
At year-end, the Lafourche Parish Fire Protection District No. 1 had $359,000 in generalobligations bonds outstanding - a decrease of 12% over last year. The Lafourche ParishFire Protection District No. 1 does not plan on issuing any more new debt to finance majorcapital improvements, but will be reviewing bond market conditions for financing future yearcapital expenditures. More detailed information about long-term liabilities is presented inNote 7 to the financial statements.
Lafourche Parish Fire Protection District No. 1MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2006
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
Highlights of next year's adopted budget for the general fund include:
Beginning Fund Balance $ 126,395Projected Revenue 374,935Projected Expenditures (501,158)Ending Fund Balance $ 172
CONTACTING FINANCIAL MANAGEMENT
This financial report is designed to provide a general overview of the Lafourche Parish FireProtection District No. 1 finances and to show accountability for the money it received. Ifyou have questions about this report or need additional financial information, contact:
Mr. Leonard Lasseigne, ChairmanP.O. Box 156Raceland, LA 70394985-537-7517
FINANCIAL SECTION
STAGNI & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTTS & CONSULTAhfTS
INDEPENDENT AUDITOR'S REPORT
To the Board of Commissioners,Of the Lafourche Parish Fire Protection District No. 1,
We have audited the accompanying financial statements of the governmental activitiesand each major fund of the Lafourche Parish Fire Protection District No. 1, a componentunit of the Lafourche Parish Council, as of and for the year ended December 31, 2006,which collectively comprise the basic financial statements as listed in the table ofcontents. These financial statements are the responsibility of Lafourche Parish FireProtection District No. 1's, management. Our responsibility is to express an opinion onthese basic financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the UnitedStates. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the basic financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the basic financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall basic financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.
In our opinion the basic financial statements referred to above present fairly, in allmaterial respects, the financial position of the governmental activities and each majorfund of the Lafourche Parish Fire Protection District No. 1, as of December 31, 2006,and the results of its operations for the year then ended in conformity with accountingprinciples generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report datedFebruary 16, 2005, on our consideration of the Lafourche Parish Fire Protection DistrictNo. 1's internal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. That report is an integralpart of an audit performed in accordance with Government Auditing Standards andshould be read in conjunction with this report in considering the results of our audit.
I 39 B JAMES COMEAUX Ro. #8 I 2 * LAFAYETTE, LA 7O5O8 (337) 4O8-<gD3 I EMAIL: [email protected]
MEMBERS: AICPA * LCPA
To the Board of Commissioners,Of the Lafourche Parish Fire Protection District No. 1,
Page 2
Management's Discussion and Analysis and the Required Supplementary Information,as listed in the table of contents, are not a required part of the basic financialstatements, but are supplementary information required by accounting principlesgenerally accepted in the United States of America. We have applied certain limitedprocedures, which consisted principally of inquiries of management regarding themethods of measurement and presentation of the supplementary information. However,we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming an opinion on the financialstatements that collectively comprise the Lafourche Parish Fire Protection District No.1 's basic financial statements. The Other Supplemental Information listed in the table ofcontents are presented for purposes of additional analysis and are not a required part ofthe basic financial statements of the Lafourche Parish Fire Protection District No. 1.Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly presented in all materialrespects in relation to the basic financial statements taken as a whole.
C7" L^a I
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Thibodaux, LAMay 25, 2007
STAGNI & COMPANY, LLC
LAFOURCHE PARISH FIRE PROTECTION DISTRICT NO. 1Statement of Net Assets
December 31, 2006
ASSETSCurrent Assets:
Cash $ 222,046Ad valroem taxes receivable 47,524Due from other governmental units 317,439Deposits 1,020Bond Issuance Cost (net of amortization) 4,076
Total current assets 592,105Noncurrent assets:
Capital Assets, net of accumulated depreciation 1,342,641
TOTAL ASSETS 1,934,746
LIABILITIESCurrent Liabilities:
Deferred revenue 364,964Bonds Payable-Current 51,000Accrued Interest on Bonds Payable 3,850
Total current liabilities 419,814
Long term liabilities:Bonds Payable-long term 308,000
TOTAL LIABILITIES 727.814
NET ASSETSInvested in capital assets, net of related debt 979,791Restricted for:
Debt Service 92,564Unrestricted 134.577
Total net assets $ 1.206,932
See notes to financial statements.10
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LAFOURCHE PARISH FIRE PROTECTION DISTRICT NO. 1Balance Sheet - Governmental Funds
December 31, 2006Total
General Debt GovernmentalFund Service Funds
ASSETSCash $ 129,481 $ 92,565 $ 222.046Ad valorem taxes recievable 41,691 5,833 47,524Due from other governmental units 278,452 38,987 317,439Deposits 1.020 ^_ 1.020
EQUITYFund balances-reserved for debt service 92,564 92,564Fund balances-unreserved, undesignated: 130.501 130.501
Total equity and other credits 130.501 92.564 223.065
Total liabilities & equity $ 450,644 $ 137.385
RECONCILIATION TO STATEMENT OF NET ASSETS:
Amounts reported for governmental activities in the statement of netassets are different because:
The net book value of capital assets used in governmentalactivities are not financial resources and therefore arenot reported in the funds. 1,342.641
Some liabilities are not due and payable in the current period andtherefore are not reported in the funds:
Bonds Payable Current (51,000)Long Term (308,000)
Accrued interest on Bonds (3,850)Unamortized bond issue costs 4,076
(358.774)
Net assets of governmental activities $ 1.206.932
See notes to financial statements.12
LAFOURCHE PARISH FIRE PROTECTION DISTRICT NO. 1Statement of Revenues, Expenditures, and Changes
in Fund Balances - Governmental FundsFor the Year Ended December 31, 2006
GeneralFund
REVENUESTaxes-ad valoremState of Louisiana:
State Revenue SharingInsurance Rebate
Lafourche Communication DistrictInterest and miscellaneous
TOTAL REVENUES
EXPENDITURESGeneral government - current:
Ad valorem tax deductionsTotal general government - current
Public safety - current:Fire Fighting EquipmentInsuranceOperating Exp-TrucksMaintenance-TrucksTurn out GearSCBANozzles & FittingsMaintenance -BuildingsUtilitiesTelephoneCommunicationsPublicationsFire Prevention WeekProfessional ServicesLeasesTrainingMiscellaneous
Total public safety - currentCapital expenditures
Total capital expendituresDebt Service:
Principal RetirementInterest and fiscal charges
Total debt serviceTOTAL EXPENDITURESExcess (deficiencies) of revenues
over expenditures
OTHER FINANCING SOURCES(USES)Transfers in (out)
Total other financing sources and uses
Net change in fund balance
FUND BALANCESBeginning of yearEnd of year
$ 312,628
9,52148,17110,8003.545
384.665
13.23713,237
98553.2434,44516.270437
4,240135
11.83520,7076,410775510
3,2939,365500
2,1981,797
137.145239.921239.921
390.303
(5.638)
(14.501)
(14.501)
(20,139)
150.640$ 130.501
DebtService
TotalGovernmental
Funds
$ 90,019 $ 402,647
9,52148.17110,8004.5531.008
91.027
49,00015.55264.55264.552
26.475
14,501
14.501
40,976
51.588
475.692
13.237
98553.2434,445
16,270437
4,240135
11,83520,707
6,410775510
3,2939,365
5002,1981.797
137.145239.921239.921
49.00015.55264.552
454.855
20,837
20,837
202.228$ 92.564 $ 223.065
See notes to financial statements.13
LAFOURCHE PARISH FIRE PROTECTION DISTRICT NO. 1RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSTO THE STATEMENT OF ACTIVITIES
As of and for the year ended December 31, 2006
Net change in fund balances - total governmental funds $ 20,837
Amounts reported for governmental activities in the statement of activities(government-wide financial statements) are different because:
Governmental funds report capital outlays as expenditures in the indiviedual fund.Governmental activities report depreciation expense to allocate the cost of thosecapital assets over the estimated useful lives of the asset.
Capital Outlay purchases $ 239,921Depreciation Expense (173,452)Loss on disposal of asset (3,787)
62.682
Repayment of long-term debt is reported as an expenditure in governmental funds,but the repayment reduces long-term liabilities in the statement of net assets.In the current year, these amounts consist of:
Bond principal retirement 49,00049.000
Some items reported in the statement of activities do not require the use of currentfinancial resources and therefore are not reported as expenditures ingovernmental funds:
Accrued interest on Bonds (591)Amortization of bond issue costs (494)
(1.085)
Other expenses reported in the Statement of Activitiesthat do not require current financial resources:
Decrease in Prepaid insurance 3.208
Change in net assets of governmental activities $ 134.642
See notes to financial statements.14
LAFOURCHE PARISH FIRE PROTECTION DISTRICT No. 1Notes to the Financial Statements
For the Year Ended December 31, 2006
The Lafourche Parish Council adopted a resolution creating Fire Protection District No.1 of the Parish of Lafourche, Louisiana and defining and describing the boundariesthereof on May 13, 1953. The District comprises that territory within the presentboundaries of Police Jury Wards three and seven of Lafourche Parish. The District hasall the rights and powers and privileges granted by and conferred by the Constitutionand Statutes of the State of Louisiana, including the right to incur debt, issue bonds,and levy taxes.
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Presentation
The accompanying basic financial statements have been prepared in conformity withgovernmental accounting principles generally accepted in the United States of America.The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.The accompanying basic financial statements have been prepared in conformity withGASB Statement 34, Basic Financial Statements-and Management's Discussion andAnalysis-for State and Local Governments, issued in June 1999.
B. Reporting Entity
Under Governmental Accounting and Financial Standards Section 2100, the financialreporting entity consists of the primary government and its component units. As thegoverning authority of the parish, the Lafourche Parish Council is considered to be theprimary government for financial reporting purposes for the Parish of Lafourche.
Component units are defined as legally separate organizations for which the electedofficials of the primary government are financially accountable. The criteria used indetermining whether financial accountability exists include:
1. Appointing a voting majority of an organization's governing body, anda. The ability of the council to impose its will on that organization and/or;b. The potential for the organization to provide specific financial benefits to or
imposes specific financial burdens on the council. Organizations for which thecouncil does not appoint a voting majority but are fiscally dependent on thecouncil.
15
LAFOURCHE PARISH FIRE PROTECTION DISTRICT No. 1Notes to the Financial Statements
For the Year Ended December 31, 2006
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,(Continued)
Reporting Entity (Continued)
2. Organizations for which the council does not appoint a voting majority butare fiscally dependent on the council.
3. Organizations for which the reporting entity financial statements would bemisleading if data of the organization is not included because of thenature or significance of the relationship.
The District is considered a component unit of the Lafourche Parish Council, if applyingthe criteria above. This decision is based on the fact that the Parish Council appointsthe voting majority of the Board of Commissioners of the District.
C. Fund Accounting
The District uses funds and account groups to report on its financial position and theresults of its operations. Fund accounting is designed to demonstrate legal complianceand to aid financial management by segregating transactions related to certaingovernment functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. Anaccount group, on the other hand, is a financial reporting device designed to provideaccountability for certain assets and liabilities that are not recorded in the fundsbecause they do not directly affect net expendable available financial resources.
Governmental Funds
Governmental funds account for all or most of the general activities. These funds focuson the sources, uses, and balances of current financial resources. Expendable assetsare assigned to the various governmental funds according to the purposes for whichthey may be used. Current liabilities are assigned to the fund from which they will bepaid. The difference between a governmental fund's assets and liabilities is reported asfund balance. In general, fund balance represents the accumulated expendableresources that may be used to finance future period programs or operations. Thefollowing are the governmental funds:
16
LAFOURCHE PARISH FIRE PROTECTION DISTRICT No. 1Notes to the Financial Statements
For the Year Ended December 31, 2006
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. (Continued)
C. Fund Accounting (Continued)
Governmental Funds (Continued)
General Fund - The General Fund is used to account for all financial resources andexpenditures except those that are required to be accounted for in another fund.
Debt Service Fund - The Debt Service Fund is used to account for the accumulation ofresources for, and the payment of general long-term obligation principal, interest andrelated costs.
D. Measurement Focus / Basis of Accounting
Fund Financial Statements (FFS)
The amounts reflected in fund financial statements, are accounted for using a currentfinancial resources measurement focus. With this measurement focus, only currentassets and current liabilities are generally included on the balance sheet. Thestatement of revenues, expenditures, and changes in fund balances reports on thesources (i.e., revenues and other financing sources) and uses (i.e., expenditures andother financing uses) of current financial resources. This approach is then reconciled,through adjustment, to a government-wide view of operations.
The amounts reflected in the fund financial statements, use the modified accrual basisof accounting. Under the modified accrual basis of accounting, revenues arerecognized when susceptible to accrual (i.e., when they become both measurable andavailable). Measurable means the amount of the transaction can be determined andavailable means collectible within the current period or soon enough thereafter to payliabilities of the current period. The court considers all revenues available if they arecollected within 60 days after the fiscal year end.
Expenditures are recorded when the related fund liability is incurred, except for interestand principal payments on general long-term debt which is recognized when due, andcertain compensated absences and claims and judgments which are recognized whenthe obligations are expected to be liquidated with expendable available financialresources. The governmental funds use the following practices in recording revenuesand expenditures:
17
LAFOURCHE PARISH FIRE PROTECTION DISTRICT No. 1Notes to the Financial Statements
For the Year Ended December 31, 2006
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
C. Measurement Focus / Basis of Accounting (Continued)
Revenues - Ad valorem taxes and the related state revenue sharing are recorded asrevenue in the period for which levied, thus the 2005 property taxes which were leviedto finance the 2006 budget are recognized as revenue in 2006. Miscellaneousrevenues are recorded as revenues when received in cash by the District because theyare generally not measurable or available until actually received.
Expenditures - The major expenditures current public safety supplies, insurance andaudit and accounting fees are recorded when payable or when the fees are incurred.
Government-Wide Financial Statements (GWFS)
The government-wide financial statements display information as a whole. Thesestatements include all the financial activities. Information contained in these statementsreflects the economic resources measurement focus and the accrual basis ofaccounting. Revenues, expenses, gains, losses, assets and liabilities resulting fromexchange or exchange-like transactions are recognized when the exchange occurs(regardless of when cash is received or disbursed).
Revenues, expenses, gains, losses, assets and liabilities resulting from non-exchangetransactions are recognized in accordance with the requirements of GASB StatementNo. 33, Accounting and Financial Reporting for Non-exchange Transactions.
Program Revenues - Program revenues included in the column labeled Statement ofActivities are derived directly from users as a fee for services; program revenuesreduce the cost of the function to be financed from the general revenues.
F. Use of Estimates
The preparation of financial statements in conformity with accounting principlesgenerally accepted in the United States of America requires management to makeestimates and assumptions that affect certain reported amounts and disclosures.Accordingly, actual results could differ from those estimates.
18
LAFOURCHE PARISH FIRE PROTECTION DISTRICT No. 1Notes to the Financial Statements
For the Year Ended December 31, 2006
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. (Continued)
F. Operating Budgets
As required by Louisiana Revised Statutes, The Board of Commissioners adopted abudget for the District. The Board, as allowed by state law, does not obtain publicparticipation in the budget process. The Board must approve any amendmentinvolving the transfer of monies from one function to another, or increases inexpenditures. All budgeted amounts that are not expended or obligated throughcontracts lapse at year-end. The General Fund budget is adopted on a basismaterially consistent with accounting principles generally accepted in the United Statesof America.
G. Cash
Cash includes amounts in demand deposits, interest-bearing demand deposits, andtime deposits. Cash equivalents include amounts in time deposits and thoseinvestments with original maturities of 90 days or less. Under state law, the court maydeposit funds in demand deposits, interest-bearing demand deposits, or time depositswith state banks organized under Louisiana law or any other state of the United States,or under the laws of the United States.
H. Receivables
The financial statements for the District contain no allowance for uncollectible accounts.Uncollectible amounts due for ad valorem taxes are recognized as bad debts at the
time information becomes available which would indicate the uncollectibility of theparticular receivable. These amounts are not considered to be material in relation tothe financial position or operations of the funds.
I. Capital Assets
Capital assets are recorded at historical cost or estimated if historical cost is notavailable. Donated assets are recorded as capital assets at their estimated fair marketvalue at the date of donation. Capital assets are recorded in the GWFS. All capitalassets, other than land, are depreciated using the straight-line method over thefollowing estimated useful lives:
CATEGORY LIFEBUILDINGS 25 YEARSTRUCKS 15 YEARSEQUIPMENT 5 YEARS
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LAFOURCHE PARISH FIRE PROTECTION DISTRICT No. 1Notes to the Financial Statements
For the Year Ended December 31, 2006
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. (Continued)
J. Restricted Net Assets
For government-wide statement of net assets, net assets are reported as restrictedwhen constraints placed on net asset use are either:
1. externally imposed by creditors (such as debt covenants), grantors,contributors, or laws or regulations of other governments; and
2. imposed by law through constitutional provisions or enablinglegislation.
K. Fund Equity
In the fund financial statements, governmental funds report reservations of fundbalance for amounts that are not available for appropriation or are legally restricted byoutside parties for use for a specific purpose. Any designations of fund balancerepresent tentative management plans that are subject to change.
Note 2 DEPOSITS AND INVESTMENTS
Deposits:Demand (deposits, interest bearing demand deposits and certificates of deposit) arerecorded at cost, which approximates fair value. At December 31, 2006, the reportedamount of deposits was $222,046 and the bank balance was $228,245. The differencebetween the bank balance and the reported amount represents outstanding checks anddeposits in transit.
Custodial credit risk is the risk that in an event of a bank failure, the district's depositsmay not be returned to it. Under state law, these deposits (or the resulting bankbalances) must be secured by federal deposits insurance or the pledge of securitiesowned by the fiscal agent bank. The market values of the pledged securities plus thefederal deposit insurance (FDIC) must at all time equal the amount on deposit with thefiscal agent. These securities are held in the name of the pledging fiscal agent bank ina holding or custodial bank that is mutually acceptable to both parties.
Of the total bank balance, $22,046 is considered a custodial credit risk. FDIC andpledged securities valued at $602,871 for 2006, secure these deposits from risk. Thecollateral must be held at the pledging bank's trust department or other bank, acting asthe pledging bank's agent, in the District's name.
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LAFOURCHE PARISH FIRE PROTECTION DISTRICT No. 1Notes to the Financial Statements
For the Year Ended December 31, 2006
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
Even though the pledged securities are considered uncollateralized under theprovisions of GASB Statement 3, R.S. 39:1229 imposes a statutory requirement on thecustodial bank to advertise and sell the pledged securities within 10 days of beingnotified by the entity that the fiscal agent has failed to pay deposited funds upondemand.
Note 3 AD VALOREM TAXES
Property taxes are levied each December 1 on the assessed value listed as of the priorJanuary 1 for all real property, merchandise and movable property located in the Parish.Assessed valued are established by the Lafourche Parish Assessor's Office and theState Tax Commission at percentages of actual value as specified by Louisiana law.
A reevaluation of all property is required to be completed no less than every four years.The last reevaluation was completed for the list of January 1, 2004. Taxes are due andpayable December 31 with interest being charged on payments after January 1. Taxescan be paid through the tax sale date, which is the last Wednesday in June.
Properties for which the taxes have not been paid are sold for the amount of the taxes.The tax rate for the year ended December 31, 2006 was $10.00 per $1,000 ofassessed valuation on property within Lafourche Parish Fire Protection District No. 1 forthe purpose of maintaining and operating fire protection facilities and programs, and$2.90 per $1,000 for the purpose of payment of general long term debt, principal,interest, and related costs for the District.
Note 4 COMPENSATION OF BOARD MEMBERS
No compensation was paid to Board Members during the year ended December 31,2006.
Note 5 DUE FROM OTHER GOVERNMENTAL UNITS
The amounts due from other governmental units at December 31, 2006 consisted of advalorem tax collections due from the Lafourche Parish Tax Collector to be remitted tothe District in January 2006.
21
Noted
LAFOURCHE PARISH FIRE PROTECTION DISTRICT No. 1Notes to the Financial Statements
Depreciation expense for the year was $173,452 recorded in the governmental activities.
Note? LONG TERM DEBT
At December 31, 2006, the District had outstanding a Certificate of Indebtednessbearing interest at a rate of 8.5% payable through February 1, 2008 and GeneralObligation Bonds bearing interest at 3.8% payable through April 1, 2015.
22
LAFOURCHE PARISH FIRE PROTECTION DISTRICT No. 1Notes to the Financial Statements
For the Year Ended December 31, 2006
Note 7 LONG TERM DEBT {CONTINUED)
A summary of changes in long-term obligations of the District is as follows:
December31200S
Additions
$66,000 $45,000342,000 28,000 314,000
TOtALS $408,000 $49,000 $359,000
The annual requirements, including interest, to amortize all long-term debt outstandingat December 31, 2006 are as follows:
m.
40,38140,26041,08239,86641,593
168,312
$371,494
23,84123,623
$47,464
64,22263,88341,08239,86641,593
168,312
$418,958
Note 8 RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of,damage to and destruction of assets; errors and omissions; and naturaldisasters. To protect against these risks, the District has purchasedcommercial or other insurance for the losses to which it is exposed.
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REQUIRED SUPPLEMENTALINFORMATION
LAFOURCHE PARISH FIRE PROTECTION DISTRICT NO. 1Budgetary Comparison Schedule - General Fund
For the Year Ended December 31, 2006
BudgetFinal
VarianceFavorable
REVENUESTaxesState of Louisiana:
State Revenue SharingInsurance RebateLafourche Communication District
OtherTOTAL REVENUES
EXPENDITURESGeneral government - current:
Ad valorem tax deductionsTotal general government - current
Public safety - current:Fire Fighting EquipmentInsuranceOperating Exp-TrucksMaintenance-TrucksTurn Out GearSCBANozzles & FittingsHosesMaintenance -BuildingsUtilitiesTelephoneCommunicationsPublicationsFire Prevention WeekProfessional ServicesLeasesTrainingMiscellaneous
Total public safety - currentCapital expendituresTOTAL EXPENDITURESExcess (deficiencies) of revenues
LAFOURCHE PARISH FIRE PROTECTION DISTRICT NO. 1Budgetary Comparison Schedule - Debt Service Fund
For the Year Ended December 31, 2006Variance
BudgetFinal
REVENUESTaxesOther
TOTAL REVENUES
$86,8461.050
EXPENDITURESGeneral government - current:
Ad valorem tax deductionsTotal general government - current
Debt Service:Principal RetirementInterest and fiscal charges
Total debt serviceTOTAL EXPENDITURESExcess (deficiencies) of revenues
over expenditures
OTHER FINANCING SOURCES(USES)Transfers in (out)
Total other financing sources and uses
Net change in fund balance
FUND BALANCESBeginning of yearEnd of year
87,896
3.0003.000
49,00016.56965,56968,569
19,327
25,00025,000
44,327
51,525
ActualFavorable
(Unfavorable)
$90,0191.008
91,027
$ 95,852
49,00015.55264,55264,552
26,475
14.50114,501
$3.173(42)
3.131
3.0003.000
1.0171.0174.017
7,148
(10.499)(10.499)
40,976 (3,351)
51.588 63$ 92.564 $ (3.288)
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REPORTS REQUIRED BY GOVERNMENTAUDITING STANDARDS
STAGNI & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITHGOVERNMENT AUDITING STANDARDS
To the Board of Commissioners,Of the Lafourche Parish Fire Protection District No. 1
We have audited the financial statements of Lafourche Parish Fire Protection DistrictNo. 1, a component unit of the Lafourche Parish Council, as of and for the year endedDecember 31, 2006, and have issued our report thereon dated May 25, 2007. Weconducted our audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the UnitedStates.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Lafourche Parish Fire ProtectionDistrict No. 1's internal control over financial reporting as a basis for designing ourauditing procedures for the purpose of expressing our opinion on the basic financialstatements but not for the purpose of expressing an opinion on the effectiveness of theDistrict's internal control over financial reporting. Accordingly, we do not express anopinion on the effectiveness of the District's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functionsto prevent or detect misstatements on a timely basis. A significant deficiency is acontrol deficiency, or combination of control deficiencies, that adversely affects theentity's ability to initiate, authorize, record, process, or report financial data reliably inaccordance with generally accepted accounting principles such that there is more thana remote likelihood that a misstatement of the entity's financial statements that is morethan inconsequential will not be prevented or detected by the entity's internal control.
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2O7 LAFAYE AVENUE • THIBODAUX, LA 7O3OI (985) 447-7326
I 39 B JAMES COMEAUX RD. #8 I 2 • LAFAYETTE, LA 7O5O8 (337) 4O8OO3 I
To the Board of CommissionersLafourche Parish Fire Protection District No. 1Page 2
A material weakness is a significant deficiency, or combination of significantdeficiencies, that results in more than a remote likelihood that a material misstatementof the financial statements will not be prevented or detected by the entity's internalcontrol.
Our consideration of internal control over financial reporting was for the limited purposedescribed in the first paragraph of this section and would not necessarily identify alldeficiencies in internal control that might be significant deficiencies or materialweaknesses. We did not identity any deficiencies in internal control over financialreporting that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Lafourche Parish FireProtection District No. 1's basic financial statements are free of material misstatement,we performed tests of its compliance with certain provisions of laws, regulations,contracts and grant agreements, noncompliance with which could have a direct andmaterial effect on the determination of financial statement amounts. However, providingan opinion on compliance with those provisions was not an objective of our audit, andaccordingly, we do not express such an opinion. The results of our tests disclosed noinstances of noncompliance that are required to be reported under Government AuditingStandards.
This report is intended for the information of the Board of Commissioners, managementthe State of Louisiana and the Legislative Auditor for the State of Louisiana and is notintended to be and should not be used by anyone other than these specified parties.Under Louisiana Revised Statute 24:513, this report is distributed by the LegislativeAuditor as a public document.
Thibodaux, LAMay 25, 2007
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STAGNI & COMPANY, LLC
Lafourche Parish Fire Protection District No. 1SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended December 31, 2006
We have audited the financial statements of Lafourche Parish Fire Protection DistrictNo. 1, a component unit of the Lafourche Parish Council, as of and for the year endedDecember 31, 2006, which collectively comprise the basic financial statements andhave issued our report thereon dated May 25, 2007. We conducted our audit inaccordance with auditing standards generally accepted in the United States of Americaand the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States. Our audit of thefinancial statements as of December 31, 2006 was unqualified.
Section I Summary of Auditor's Reports
a. Report on Internal Control and Compliance Material to the Financial Statements
Internal ControlMaterial Weaknesses NoSignificant Deficiencies NoComplianceCompliance Material to Financial Statements No
b. Federal Awards N/A
Internal ControlMaterial Weaknesses D Yes a NoSignificant DeficienciesD Yes D No
Type of Opinion On Compliance Unqualified QQualrfied DFor Major Programs Disclaimer p Adverse D
Are their findings required to be reported in accordance with Circular A-133, Section.510(a)? D Yes D Noc. Identification of Major Programs: NOT APPLICABLE
Section II Financial Statement Findings
NONE
Section /// Federal Award Findings and Questioned Costs
