lIGISuflVE^ 2010 JAN-6 MHO-21 · 2021. 1. 31. · ^m lIGISuflVE^ 2010 JAN-6 MHO-21 CITY OF...

^m l IGISuflVE^

2010 JAN-6 MHO-21

CITY OF JEANERETTE, LOUISIANA

Financial Report

For the Year Ended June 30,2009

Under provisions of state law, this report is a public document. A copy 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 LegislativeAuditor and, where appropriate, at the office of the parish clerk of court

Release Date

TABLE OF CONTENTS

Page

INDEPENDENT AUDFTOR'S REPORT 1-2

BASIC FINANCIAL STATEMENTS Govemment-wide Financial Statements

Statement of net assets Statement of activities

Fund Financial Statements Govemmental fimds:

Balance sheet Statement of revenues, expenditures, and changes in fund balances

Proprietary fund: Statement of net assets Statement of revenues, expenses, and changes in fund net assets Statement of cash flows

9-10 11-12

13 14-15 16-17

Notes to fmancial statements 18-40

REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedules:

General fund Special revenue funds -

1% Sales tax fund Drainage and mosquito fund

42

43 44

Note to budgetary comparison schedules 45

OTHER SUPPLEMENTARY INFORMATION General fimd:

Schedule of revenues compared to budget Schedule of expenditures compared to budget

47-48 49-51

(continued)

TABLE OF CONTENTS (continued)

Page

Nonmajor govemmental fimds: Combining balance sheet 52-53 Combining schedule of revenues, expenditures, and changes in fimd balances 54-55

Comparative financial statements: Government-wide financial statements

Schedule of net assets 56 Schedule of activities 57

Fund fmancial statements Governmental Funds:

Balance Sheet 58 Schedule of revenues, expenditures and changes in fimd balances 59

Propreitary fimd: Schedule of net assets 60 Schedule of revenues, expenses, and changes in fimd net assets 61-62

Schedule of cash flows 63-64

Schedule of number of utility customers 65

Schedule of insurance in force 66

Schedule of aged accounts 67

Schedule of water rates 68

INTERNAL CONTROL, COMPLL\NCE, AND OTHER INFORMATION Report on internal control over financial reporting and on compliance and

other matters based on an audit of fmancial statements perfomied in accordance with Govemment A uditing Standards li^-l 1

Summary schedule of prior year fmdings 72

Summary schedule of audit results and findings 73-77

Corrective action plan for current year findings 78-79

C. Bwtcn KokJar. CPA* R u w * F. Champaan*, CPA' VictorR.Slavan. CPA* P. Troy CouivBI*, CPA* Gtmld A. Thlbodeaix. Jr.CPA* Robert S.C»ter. CPA* ArihurR. Hixm. CPA*

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC

TymsE. Mixon. Jr.. CPA A t tn J. UBry, CPA Alb«rt R. U Q W . CPAJ»FS,CSA' Pstny AngdIe ScTuggini, CPA Chriftlm L Cowin. CPA MiryT.Ttftodaaux. CPA Uar ihdl W. GMry, CPA Alan U.T^tor. CPA JameiR. Roy. CPA RobertJ. M*tz.CPA Ks lyU. Doucot.CPA Chtryl L BarUy. CPA Han4rB, Self. CPA PaJ L Otttcamm. Jr. CPA W«ida F. Aicemant CPA. CVA KrtaanB. Dauz«,CPA Rictiam R. Andsreon Sr^ CPA Carolyn C. Andsreon. CPA

Retrod: Connd 0. Chapman. CPA* 2006 HarryJ.Ctotfto.CPA 2007

CERTIFIED PUBUC ACCOUNTANTS OFFICES

183 South Beads Rd Latayetts. LA 70508 Phone (337) 232-4141 Fax (337} 232^660

450 Eait Main Stiest New Delta. LA 70560

Phons (337) 367-9204 F n (337) 367-9200

113 EastBrWga SL 2D0 Soilh Main aieet Breaux Bridas. LA 7D517 AbbevtBa. LA 70510 Phone (337) 333-4020 Phons (337) S03-7044 Fax(337) 332-2867 Fax (337) 693-7946

1234 Davfd Dr. Ste 203 Morgan City. LA 70360 Phons (885) 384-2020 Fax (985) 384-3020

408 Wei t Cotton Street N lls Platts. LA 70586 Phons (337) 363-2792 Fax (337) 363-3049

332 WeatSlxh Avenua Obsdm, LA 70655 Phone (337) 630-4737 Fax(337)63M568

1013 Main Stisst FranhSn. LA 70538

Phone (337) 828-0272 Fc( (337)828-0200

IsaEaatWaddUSt Marfcivtita LA 71351

Phone (318) 253-9252 Fax (318) 253-6681

621 Main Street PirwvlDa, LA 71360

Phons (318)44^4421 Fax (318) 442-9633

* A n-olMtbnsl Jiccainllng Coipoalc

WEBSTTE WWWJtCS RCPAS.COM

INDEPENDENT AUDITOR'S REPORT

The Honorable Arthur L. Verret, Mayor, and Members of the Board of Aldermen

City of Jeanerette, Louisiana

We have audited the accompanying fmancial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Jeanerette, Louisiana (hereinafter "City"), as of and for the year ended June 30, 2009, which collectively comprise the City's basic fmancial statements as listed in the table of contents. These fmancial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the Govemment Atiditing Standards, issued by the Comptroller CJeneral of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fmancial statements are free of material misstatement An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2009, and the respective changes in financial position, and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

M&nberof: AMERICyw IKSTITUTE OF CERTIFED PUBUC ACCOU hfTANTS

Member Of. SOaETY OF LOUISIANA

CBITIRED PUBLC ACCOUNTAMTS

http://RCPAS.COM

In accordance with Govemment Auditing Standards, we have also issued our report dated December 22, 2009 on our consideration of the City's intemal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the intemal control over financial reporting or on compliance. That repwrt is an integral part of an audit performed in accordance with Govemment Auditing Standards and should be considered in assessing the results of om* audit

The City has not presented the management's discussion and analysis that the Govemmental Accounting Standards Board has determined is necessary to supplement, although not required to be part of, the basic financial statements.

The budgetary comparison information on pages 42 throu^ 45 is not a required part of tiie basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of tiie required supplementary information. However, we did not audit the information and express no opinion on it.

Chu* audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying fmancial information listed as "Other Supplementary Information" in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on die other supplementary information.

Kolder, Champagne, Slaven & Company, LLC Certified Public Accountants

Morgan City, Louisiana December 22,2009

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

CFTY OF JEANERETTE, LOUISIANA

Statement of Net Assets June 30, 2009

ASSETS Current assets:

Cash and interest-bearing deposits Investments Receivables, net Due from other govemmental units Other receivables Interfund balances Inventory Prepaid items

Total current assets

Governmental Activities

$ 590,246 1,544,243

48,387 147,579

445 3,983

10,526 61,179

Busmess-Type Activities

$ 95,187 1,259,575

103,340 19,860

-(3,983) 5335 5,888

Total

$ 685,433 2,803,818

151,727 167,439

445 -

15,861 67,067

2,406,588 1,48532 3,891,790

Noncurrent assets: Restricted assets Capital assets, net

Total noncurrent assets

Total assets

6,128,745 6,128,745

8,535,333

765,455 8,990^0 9,755,675

765,455 15,118,965 15,884,420

11,240,877 19,776,210

LIABILITIES Current liabilities:

Accoimts and other payables Deferred revenue Bonds payable

Total current liabilities

146,955 131,391 75,799

354,145

83,259 1,439

84,698

230,214 132,830 75,799

438,843

Noncurrent liabilities: Accrued liabilities Customers' deposits payable Bonds payable

Total noncurrent liabiUties

13,757

2,167,074 2,180,831

847 116,401

117,248

14,604 116,401

2,167,074 2,298,079

Total liabilities 2,534,976 201,946 2.736,922

NET ASSETS Invested in cq>ital assets, net of related debt Restricted for

Debt service Other purposes

Unrestricted Total net assets

3,885,872

486,537 126,955

1,500,993

8,990,220

2,048,711

12,876,092

486,537 126,955

3,549,704 $ 6,000,357 $ 11,038,931 $17,039,288

The accompanying notes are an integral part of the financial statements.

m 0 0 - d -

oo" m • ^

0 0 VO

0 0 VO VO

so O ^ (N ^ r-O VO Os

oC o* (s" DO O 0> w ^ w

K VO

o r-

/-^ w-»

. 1 ^

r-^ T f

CH" (N m • 1

r-( N

( S

(N O »0 ON m oo oC -^" VO oo r- r-

0 0 r-^ K

OS

»n •Tt ( S

o\ r-^ oo r- t ^ oo" vo" m TT

VO o m

»> 1 - ^

^ ^f ^5 o\ VO

•^ s « ^

( N m rn oo o «r i

r-" " •

oo 0 0 ( N

oT <r o

K M

^ «n , a M

r-" 1 - H

• ^

—•

-* »n 1—t

n

r^ ^ _ i

^ s . ^

r* 00 o o » \ 00 00 r n

ON

m oo oT VO (S

o t -t -oo" o ro ^ M

,_ m OS

oo" m o_ ^

OO • ^ ^

00

0 0 VO

oo" VO VO

•^

S^S^q

sss; oT o " f s oo O 0 \ j ^ ^ ^ - •«»L^

p VO

o" r-^ N — '

(N O »n ON r n 00 oC ^^ VO oo

o o i r i (N ON VO Q r- Tt - ^ r- o 5

ov o (S ^- m ^ (S — 0 \

o f ^ Ov OS 1—t *•! 1-*

CN VO

"/ Ov OS ^ H

vo"

r-->n m o " o o r .

VO 6 ^

Ov o o cs

O

^ ,

m VO o ov » f i . , w-i ov

5

r-m VO

o\ oo

>o VO

r-( S

oo r-m *> ) VO «0 m

^ H

^ m r i • ^

r-

g

0 0 »o T f , B M

n o

K

r-m o r f oo r-^

"

i A

VO ^ r - ^ m ov ov r -•<t O CTN ov r n t ^ vo" CN - ^ ^ »o a \ 00 ^ r -

VO o *^ oo o

( S

VO

*> OO

5 ^ H

00

OO

vo"

». • « 4

VO

2

£3

1

1° 11 as

o '•S [> u Cd

2 SI El

1

t-

.J 11

type

acti

e, w

ater

.

3 o H

I I s

I o

FUND FINANCIAL STATEMENTS

MAJOR FUNDS' DESCRIPTIONS

GENERAL FUND

To account for resources traditionally associated with govermnents which are not required to be accounted for in another fund.

SPECIAL REVENUE FUNDS

1% Sales Tax Fund To account for the receipt and use of proceeds of the City's one percent (1%) sales and use tax.

Drainage and Mosquito Fund To account for the proceeds fi'om the Iberia Parish Govemment to maintain drainage ways to control mosquito population.

3 E2

r- Ov o^ ^ (N - ^ VO VO M

r> •> * i

O OS ^ <n m • ^ ^ TT »n

e ^

r - VO Os w) VO Os OO 5 r - ^ Cv* r^ m ^ >n ^ »n ^ 00 r f r-^ o ^ " Tj- fO T f ^ VO

s 9"

oo

vO

(N

§ o" en

v»

_« Os rn ^ - 1

en

m OS

00 (N ( S

r - (N VO CT» m ^ (N r -IT) (N m — so" ^ o " -H" 00 ^ ^^ VO

wn Os OS O T t OS wT ' rn o o 00 t -

00 *r j 00

oo" o

n. <N

^ »n o r-^ m ^ cs

• o

I

VO TT (N (N t - -^ • ^ en •^^ r-" o" cs" Os O VO

m TT

VO 00 m VO >n 00 Q\ oT

CN

** r -

V i

r - CN m ^ m (N vo" ^ " 00 Tj-

Os

i CN

00

VO

00

m Os CN OO r ^ rn •"-T rn m Ov

tN

f A

o

00

«%

I ,•< *

"<r m CN

• 1

' • t ov CN

• ^

f*^ CN

' " Ov CN

CN

1 > H

»n CN m

C O ^ C N

(N

V i

CN OO

r - o 00 w-1 VO ^ 00 ^ 00 Tf (N r -en ov^ 00 ^ *'^ ' ^ 00 T}-" t-^ O ^ •^ CN t - ^ VO

6 ^ 6 9

(N ^ ^ SO >0 VO

« e

CN 00

r.

cn ^

CN 00

m ^ 1 - H

*n *n rn r^ 2; «

»*n r - >ri

Os^ 0 _ -^^ Ov m m CN CN

.^ CJs en 1 - 4

rn

oo VO r-

* i

r-oo

VO CJv

(S r -»n — • i * i

o ^ ^ so

>r» <?» • ^ ^

«n o oo

OS

o o CN

K r-oo

00 VO O i ^ •

\A (5 •"•

w

§ > S

•3

S-g K3 § 3 g-g-3

.a

t2

1 ^ a a s ^ * § - S f i 8 S g .

o H

CITY OF JEANERETTE, LOUISLANA

Balance Sheet (continued) Govemmental Funds

June 30,2009

Reconciliation of the Govemmental Fimds Balance Sheet to the Statement of Net Assets:

Total fimd balances for governmental funds

Total net assets reported for govemmental activities in the statement of net assets is different because:

Capital assets used in govenmiental activities are not financial resources and, therefore, are not reported in the funds. Those assets consist of:

Land Constmction in progress Buildings, net of accumulated depreciation Improvements, net of accumulated depreciation Equipment, fumiture, and fixtures net of accumulated depreciation

Noncurrent liabilities, including bonds payable, not due and payable in the current period and therefore are not reported as liabilities in the funds:

Bonds payable Accmed interest payable Compensated absences

266,040 285,586

2,327,371 2,643,556

606,192

$(2,242,873) (80,616) (13,757)

$2,208,858

6,128,745

(2,337,246)

Total net assets of govemmental activities $6,000,357

The accompar^nng notes are an integral part of the financial statements.

\0

o Os VO ,—1 ^ - 1

00 ^

•rt m (N »n oo

OS r-VO (N Os r-

en v~i O Os CN ^ n «. tTi 0 \ CS 00

m

^ 4

o o s ( ^ en

V i

«

00 r-*>

r

(N Os >n ^ oo Os •^ ^. *^ «l f . ^ o m *ri r- ov rs VO t- VO en

«n m m Os Os Os * *i

«n VO VO Os CN

,—1

m o H »n 00 en en

o »o o_ ^ 00 ^ H

(N (N Os ( OÔ^ --H"SO ^ O r- 00

o o o_ w-T Os

O <n o »o" r-^

00 o Os '" 00 • ^

CN

00 *n 00 oo' o <>l (N

T3

00 VO VO

vo"

CN

Os ^ Ov vo"

00 CN en n V i 00 r-

I a> o

00 CN cn •. 00 •t

CN m

1 *>

en

O

s K m t — •

5

w-i en m ^ a \ Ov *> n »rt vo VO 5s CN

Os O t-; O Os >n

Os

VO • ^

Os

CN O Os O O O —"m" ^ 00 ^ CN

00 o Os en f

— 1 r-^

r-o" CN

^ H

m ir» K en r-00

CN Tf CN r. -^ Os OO

CN ^ ^ H

n

OV 00

CN o »n r^ en

(N O m r-" en —'

vo en t- ^ H

en en

• ^

en fi . ^ Os CN

«0

Os «

: ; - • • • ^

»n ^ en en o oo en 00 o CN —^ C^ vo_ CN r-; r n »n p ^ »n 00

S oo 00 CN r -^ ^ en en

?

r-ov en irT • ^

,_ f — 1

vo r. ^ M

o • ^

o 00 en ocT , m ^

^

o oo en oo ,_4

3,

Os VO t> » VO

«-ri .-

_ Wl Os K OS <o

CN 00

r .

en • ^

V i

r - ov «n en wi Os ^- o o CN oo t-- O p en rn r - a« CN «n r - vo CN

en o oo Os" «n w-i r. CN

00 r-r-Ov" m p-

o rj o r-o"(N o o so ^

oo oo

r-< •<t

o Ov Tf (N -* (N ^^

O Os 'O as V M

"

o o f t t-t--oo

v»

- ^ 1^ o.§l-a ^ g g I •3 S g ^ {£ fe S iB ^ -I a H

I cd

.i3

I en V 0 0

g .£3 U

2

CITY OF JEANERETTE, LOUISL\NA

Statement of Revenues, Expenditures, and Changes in Fund Balances (continued) Govemmental Funds


Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Govemmental Funds to the Statement of Activities:

Total net changes in fund balances per Statement of Revenues, Expenditures and Changes in Fund Balances $ (276,050)

The change in net assets reported for govemmental activities in the statement of activities is different because:

Govemmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.

Capital outlay which is considered expenditures on Statement of Revenues, Expenditures and Changes in Fund Balances $ 365,349

Depreciation expense for the year ended (556,514) (191,165)

The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase/(decrease) net assets (356)

Govemmental funds report bonded debt repayments, including interest, as expenditures. However, principal repayments do not appear in the statement of activities since the payment is applied against the bond payable balance on the statement of net assets 265,93 5

Some expenses reported in the statement of activities, such as compensated absences and accmed interest expense, do not require the use of current fmancial resources and are not reported as expenditures in govenunental funds 2.431

Total changes in net assets per Statement of Activities $ (199,205)

The accompanying notes are an integral part of the financial statements.

12

CFTY OF JEANERETTE, LOUISLANA

Statement of Net Assets Proprietary Fund

June 30, 2009


Cash and interest-bearing deposits Investments Receivables, net Due from other govemmental entities Due from other funds Inventory Prepaid items

Total current assets Noncurrent assets:

Restricted assets -Cash and interest-bearing deposits Investments

Coital assets, net of accumulated depreciation Total noncurrent assets

Total assets

Enterprise Fund

95,187 1,259,575

103340 19,860 5,553 5,335 5,888

1,494,738

89,916 675,539

8,990,220 9,755,675

11,250,413

LL^BILITIES Current liabilities:

Accounts payable Accmed liabilities Deferred revenue Due to other funds


75,324 7,935 1,439 9,536

94^34

Noncurrent liabilities: Accmed liabilities Payable from restricted assets -

Customers' deposits payable Total noncurrent liabilities

Total liabilities

847

116,401 117,248 211,482

Invested in coital assets Unrestricted

Total net assets

NET ASSETS 8,990,220 2,048,711

$11,038,931

77ie accompanying notes are an integral part of the financial statements.

13


Statement of Revenues, Expenses, and Changes in Fimd Net Assets Proprietary Fund


Operating revenues: Charges for services -

Water sales Sewer service charges Garbage revenue Coimections, installations, etc. Penalties

Intergovernmental Miscellaneous

Total operating revenues

Enterprise Fund

; 397,605 284,633 245,694

10,879 28,995 31,660 31,992

1,031,458

Operating expenses: Chemicals Consulting and testing fees Water certification fees Depreciation expense Equipment rental Garbage service contract Insurance Miscellaneous Office expense Payroll taxes Salaries and benefits Supplies and repairs Utilities and telephone

Total operating expenses

128,298 21,840 21,615

463,164 7,171

192,904 71,938

1,819 13,939 2,674

194,937 150,125 178,188

1,448,612

Operating loss (417,154)

(continued)

14

CFFY OF JEANERETTE, LOUISL\NA

Statement of Revenues, Expenses, and Changes in Fund Net Assets (continued) Proprietary Fund


Enterprise Fund

Nonoperating revenues (expenses): Insurance proceeds 28,507 Interest income 23,808

Net nonoperating revenues 52,315

Loss before transfers (364,839)

Transfers 95,000

Change in net assets (269,839)

Net assets, beginning 11,308,770

Net assets, ending $11,038,931

77w accompanying notes are an integral part of the financial statements.

15

CFTY OF JEANERETFE, LOUISL\NA

Statement of Cash Flows Proprietary Fund


Cash flows from operating activities: Receipts from customers Receipts from oAer goverimiental entities Payments to suppliers Payments to employees

Net cash provided by operating activities

Cash flows from noncîtal fmancing activities: Payments from other funds Other

Net cash provided by noncapital financing activities

Cash flows fit)m capital and related financing activities: Acquisition of property, plant and equipment

Net cash used in capital and related financing activities

Cash flows fitjm investing activities: Maturities of investments and interest-bearing deposits Interest on investments

Net cash used by investing activities

Net increase in cash and cash equivalents

Cash and cash equivalents, beginning

Enterprise Fund

981,609 33,099

(686,073) (288,842)

39,793

93,971 28,507

122,478

(175,265)

(175,265)

11,601 23,808 35,409

22,415

162,688

Cash and cash equivalents, ending $ 185,103

(contmued)

16


Statement of Cash Flows (continued) Proprietary Fund

For die Year Ended June 30,2009

Reconciliation of operating loss to net cash used by operating activities: Operating loss Adjustments to reconcile operating loss to net cash used by

operating activities: Depreciation Changes in current assets and liabilities:

(Increase) decrease in accounts receivable Decrease in inventories (Increase) decrease in prepaid items Increase (decrease) in accounts payable Increase (decrease) in accmed liabilities Increase (decrease) in deferred revenue


Reconciliation of cash and cash equivalents per statement of cash flows to the balance sheet:

Cash and cash equivalents, beginning of period -Cash - unrestricted Cash - restricted

Total cash and cash equivalents

Cash and cash equivalents, end of period -Cash - unrestricted Cash - restricted


Net increase in cash and cash equivalents

Enterprise Fimd

$ (417,154)

463,164

(18,977) 1,263 1,289

27,274 (18,505)

1,439

$ 39,793

$ 105,879 56,809

162,688

95,187 89,916

185,103

$ 22,415

7%e accompanying notes are an integral part of the financial statements.

17


Notes to Financial Statements

(1) Summarv of Significant Accounting Policies

The accompanying financial statements of the City of Jeanerette (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to govemmental units. GAAP includes all relevant Govemmental Accoimting Standards Board (GASB) pronouncements. In the govemment-wide financial statements and the fund financial statements for the proprietary fimds, Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989, have been applied unless those pronouncements conflict with or contradict GASB pronouncements, m which case, GASB prevails. Such accounting and reporting procedures also conform to the requirements of Louisiana Revised Statute 24:517 and to the guides set forth in the Louisiana Municipal Audit and Accotmting Guide and to the industry audit guide. Audits of State and Local Govemmental Units. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note.

A. Financial Reporting Entitv

Govemmental Accoimting Standards Board Statement 14 established criteria for determining which component units should be considered part of the City for financial reporting purposes. The basic criterion for including a potential component unit within the reporting entity is financial accountability. The GASB has set forth criteria to be considered in determining fmancial accountability. These criteria include:

1. Appointing a voting majority of an organization's goveming body, and

a. the ability of the City to impose its will on that organization and/or

b. the potential for die organization to provide specific fmancial benefits to or impose specific financial burdens on the City.

2. Organizations for which the City does not appoint a voting majority, but are fiscally dependent on the City.

3. Organizations for which the reporting entity financial statements would be misleadmg if the data of the organization is not included because of the nature of significance of the relationship.

Based upon the application of the above criteria, the following is a brief review of each potential component unit addressed in defining the City's reporting entity.

18


Notes to Financial Statements (continued)

The following organizations are related organizations which have not been included in the reporting entity:

Jeanerette Volunteer Fire Department -

The Jeanerette Volunteer Fire Department is governed by a group of volunteer citizens. The Jeanerette Volunteer Fire Department is not fiscally dependent on the City of Jeanerette; however, die City of Jeanerette includes revenues received and expenditures paid for the Fire Department as part of its general fund.

Jeanerette City Court -

The Jeanerette City Court is administered by an independently elected official. Although the city does provide facilities and some of its financing, no control is exercised over its operations.

Bicentennial Park and Museum Board -

The Mayor and Board of Alderman are responsible for appointing the members of the Board, but the City's accountability for this organization does not extend beyond making these appointments.

B. Basis of Presentation

Government-Wide Financial Statements

The statement of net assets and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity. The statements distinguish between governmental and business-type activities. Govemmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to extemal parties for goods or services.

The statement of activities presents a comparison between direct expenses and program revenues for the business-type activities of the City and for each function of the City's govemmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) fees, fmes, and charges paid by the recipients of goods or services offered by the programs, and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

19



Fund Financial Statements

The accoimts of the City are organized and operated on the basis of funds. A fimd is an independent fiscal and accounting entity with a separate set of self-balancing accounts. Fund accounting segregates fimds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of fimds is maintained consistent with legal and managerial requirements.

The emphasis on fimd financial statements is on major govemmental and enterprise fimds, each displayed in a separate column. A fimd is considered major if it is the primary operating fimd of the City or meets the following criteria:

a. Total assets, liabilities, revenues, or expenditures/expenses of that individual govemmental or enterprise fimd are at least 10 percent of the corresponding total for all fimds of that category or type; and

b. Total assets, liabilities, revenues, or expenditures/expenses of the individual govemmental or enterprise fimd are at least 5 percent of the corresponding total for all govemmental and enterprise fimds combined.

Governmental fimds are those through which most govemmental functions are typically financed. The measurement focus of govemmental fimds is on the sources, uses and balance of current financial resources. The major fimds of the City are described below:

General Fund

The General Fund is the general operating fimd of the City. It is used to account for all fmancial resources except those required to be accounted for in another fimd.

Special Revenue Funds

1% Sales Tax Fund-

The 1% Sales Tax Fund is used to account for the receipt and use of proceeds of the City's 1% sales and use tax.

Drainage and Mosquito Fund -

The Drainage and Mosquito Fund is used to account for the proceeds from the Iberia Parish Govemment to maintain dramage ways to control the mosquito population.

20



Proprietary Fund

Enterprise Fund -

Enterprise fiinds are used to account for operations (a) that are financed and operated in a manner similar to private busmess enterprises - where the intent of the goveming body is that the costs (expenses, including depreciation) of providmg goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the goveming body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The City's enterprise fimd is the Utility Fund.

Additionally, the City reports the following fimd types:

Govemmental Fund Types

Special Revenue Funds-

Special revenue fimd are used to accoimt for the proceeds of specific revenue sources (other than expendable tmsts of major capital projects) that are legally restricted to expenditures for specified purposes.

Debt Service Funds -

Debt service fimds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs.

Capital Project Funds-Capital projects fimds are used to accoimt for financial resources to be used

for the acquisition or constmction of major capital facilities (other than those financed by proprietary fimds and trust fimds).

C. Measurement Focus/Basis of Accounting

Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to 'Svhen" transactions are recorded regardless of the measurement focus applied.

Measurement Focus

On the govemment-wide statement of net assets and the statement of activities, both governmental and business-type activities are presented using the economic resources measurement focus as defined m item b. below.

21


Notes to Fmancial Statements (contmued)

In the fimd financial statements, the ^current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate:

a. All governmental fimds utilize a "current financial resources" measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available expendable fmancial resources during a given period. These fimds use fimd balance as their measure of available expendable financial resources at the end of the period.

b. The proprietary fund utilizes an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net assets (or cost recovery), financial position, and cash fiows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fimd equity is classified as net assets.

Basis of Accounting

In the govemment-wide statement of net assets and statement of activities, both govemmental and business-type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when eamed and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

Govemmental fimd financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the govemment considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures (including capital outlay) generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

The proprietary fimd utilizes the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used.

22



D. Assets, Liabilities and Equity

Cash, interest-bearing deposits, and mvestments

For purposes of the statement of net assets, cash and interest-bearing deposits include all demand accounts, savings accoimts, and certificates of deposits of the City.

Under state law, the City may invest in United States bonds, treasury notes, or certificates. Investments are stated at amortized cost.

For the purpose of the proprietary fiind statement of cash flows, "cash and cash equivalents" include all demand and savings accounts, and certificates of deposit or short-term investments with an original maturity of three months or less.

Interfiind receivables and payables

During the course of operations, numerous transactions occur between individual fimds that may result in amounts owed between fimds. Those related to goods and services type transactions are classified as "due to and from other fimds.'* Short-term interfimd loans are reported as "interfimd receivables and payables."

Long-term interfimd loans (noncurrent portion) are reported as "advances from and to other fimds." Interfund receivables and payables between fimds withm govemmental activities are eliminated in the statement of net assets.

Receivables

In the govemment-wide statements, receivables consist of all revenues eamed at year-end and not yet received. Major receivable balances for the govemmental activities include sales and use taxes. Business-type activities report customer's utility service receivables as their major receivables. Uncollectible utility service receivables are recognized as bad debts through the establishment of an allowance accoimt at the time information becomes available which would indicate the uncollectibility of the particular receivable. Unbilled utility service receivables resulting frx)m utility services rendered between the date of meter reading and billing and the end of the month, are recorded at year-end.

Capital Assets

Capital assets, which mclude property, plant, equipment, and infrastmcture assets, are reported in the applicable govemmental or business-type activities columns in the govemment-wide or financial statements. Capital assets are capitalized at historical cost or estimated cost if historical is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The City maintains a threshold level of $500 or more for capitalizing assets.

23



The costs of normal mamtenance and repairs that do not add to the value of the asset or materially extend assets lives are not cq}italized. Prior to July 1, 2001, govemmental fimds' infrastmcture assets were not cîtalized. These assets have been valued at estimated historical cost.

Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation reflected in the statement of net assets. Depreciation is provided over the assets' estimated useful lives using the straight-line method of depreciation. Hie range of estimated usefiil lives by type of asset is as follows:

Buildings 40 years Equipment 5-7 years Utility system and improvements 25 years Infi-astmcture 20-50 years

In the fimd financial statements, capital assets used in govemmental fimd operations are accounted for as capital outiay expenditures of the governmental fimd upon acquisition. Capital assets used in proprietary fiind operations are accounted for the same as in the govemment-wide statements.

Restricted Assets

Restricted assets include cash and interest-bearing deposits that are legally restricted as to their use. The restricted assets are related to the revenue bond accounts and utility meter deposits.

Long-term debt

The accounting treatment of long-term debt depends on whether the assets are used in govemmental fund operations or proprietary fimd operations and whether they are reported in the govemment-wide or fimd financial statements.

All long-term debt to be repaid from governmental and business-type resources are reported as liabilities in the govemment-wide statements. The long-term debt consists primarily of compensated absences payable, bonds payable and utility meter deposits payable.

Long-term debt for govemmental fimds is not reported as liabilities in the fimd financial statements. The debt proceeds are reported as other financing sources and payment of principal and interest reported as expenditures. The accounting for proprietary fimd long-term debt is the same in the fimd statements as it is in the government-wide statements.

24



Compensated Absences

Vacation and sick leave are recorded as expenditures of the period in which paid. Vacation credits eamed by employees range from 4 hours per month to 14 hoiu^ per month depending upon length of service. Two-thirds (2/3) of vacation credits eamed during an employment year must be taken that year. Only one-third (1/3) of accumulated vacation time may be carried over to the following year. Employees may accumulate a maximum of 120 sick days, and any sick leave credit due an employee whose service with the City is terminated by reason of resignation or discharge is canceled.

Equity Classifications

In the govemment-wide statements, equity is classified as net assets and displayed in three components:

a. Invested in capital assets, net of related debt — Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.

b. Restricted net assets - Consists of net assets with constraints placed on the use either by (1) extemal groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation.

c. Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt."

In the fimd statements, govemmental fund equity is classified as fimd balance. Fund balance is fiirther classified as reserved and unreserved, with unreserved furtiier split between designated and undesignated. Proprietary fimd equity is classified the same as in the government-wide statements.

E. Revenues. Expenditures, and Expenses

Operating Revenues and Expenses

Operating revenues and expenses for proprietary funds are those that result from providing services and producing and delivering goods and/or services. It also includes all revenue and expenses not related to capital and related financing, noncapital financing, or investing activities.

25



Expenditures/Expenses

In the govemment-wide fmancial statements, expenses are classified by fimction for both govemmental and business-type activities.

In the fimd financial statements, expenditures are classified by function and character in govemmental fimds and as operating or nonoperating in proprietary fimds.

In the fimd financial statements, govemmental fimds report expenditures of financial resources. Proprietary fimds report expenses relating to use of economic resources.

Interfimd Transfers

Permanent reallocations of resources between fimds of the reporting entity are classified as interfimd transfers. For the purposes of the statement of activities, all interfimd transfers between individual govemmental fimds have been eliminated.

Revenue Restrictions

The City has various restrictions placed over certain revenue sources fix)m state or local requirements. The primary restricted revenue sources include:

Revenue Source Legal Restrictions of Use

Sales tax See Note 3 Ad Valorem tax See Note 10

The City uses unrestricted resources only when restricted resources are fiilly depleted.

Budget and Budgetary Accoimting

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. The Mayor, Finance Chairman, and Secretary-Treasurer prepare a proposed budget and submit it to the Board of Aldermen no later than fifteen days prior to the beginnmg of each fiscal year.

2. A summary of the proposed budget is published and the public is notified that the proposed budget is available for public inspection. At the same time, a public hearing is called.

3. A public hearing is held on the proposed budget at least ten days after publication of the call for the hearing.

26



4. After the holding of the public hearing and completion of all action necessary to finalize and implement the budget, the budget is adopted through passage of an ordinance prior to the commencement of the fiscal year for which the budget is being adopted.

5. Budgetary amendments involving the transfer of fiinds from one department, program or fimction to another or involving increases in expenditures resulting from revenues exceeding amounts estimated require the approval of the Board of Aldermen

6. All budgetary appropriations lapse at the end of each fiscal year.

7. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgeted amounts are as originally adopted, or as amended from time to time by the Board of Aldermen.

8. Budgetary control is exercised at the fiind level.

H. Capitalization of Interest Expense

It is the policy of the City to capitalize material amounts of interest resulting from borrowings in the course of the constmction of capital assets. At June 30,2009, there were no borrowings for assets under constmction and no capitalized interest expense was recognized.

I. Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the basic financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ fix)m those estimates.

J. Inventories

Inventories are stated at the lower of cost or market, with cost determined by the flrst-in fu^-out, (FIFO) method.

27

CITY OF JEANERETTE, LOUISLWA


(2) Ad Valorem Taxes

Ad valorem taxes attach as an enforceable lien on property as of January 1 of each year. Taxes are levied by the City in September or October and are actually billed to the taxpayers in November. Billed taxes become delinquent on January 1 of the following year. Revenues from ad valorem taxes are budgeted in the year billed.

The City bills and collects its own property taxes using the assessed values determined by the tax assessor of Iberia Parish.

For the year ended June 30, 2009, taxes of 36.08 mills were levied on property with assessed valuations totaling $21,210,107 and were dedicated as follows:

General corporate purposes 27.33 mills

Debt service: Water system improvements 5.00 mills General obligation bonds 3.75 mills

Total taxes levied for the year ended June 30, 2009 were $765,261.

(3) Sales and Use Tax

A. Sales and Use Tax

Proceeds of a 1% sales and use tax levied by the City (2009 collections, $446,794; 2008 collections, $454,009; 2007 collections, $477,809) dedicated to the followmg purposes:

Constmcting, acquiring, extending, improving, operating and/or maintaining drainage facilities, street lighting facilities, sidewalks, sewers and sewerage disposal worics, recreational facilities, public buildings and/or fire department stations and equipment, including fire engines; purchasing and acquiring equipment and fiimishings for the aforesaid public works, buildings, improvements and facilities; and maintaining and operating the municipal police department and garbage collection and disposal facilities, including the purchase of equipment therefore, title to which improvements shall be in the pubic name; or for any one or more of said purposes; and such tax to be subject to findings fimding into bonds by the City into the manner authorized by Louisiana Revised Statutes of 1950.

28



B. Sales and Use Tax (1973)

Proceeds of a sales and uses tax levied by the City beginning in 1973 (2009 collections, $111,699; 2008 collections, $113,503; 2007 collections, $119,453) are dedicated to the following purposes:

Constmcting, acquiring, extending, improving, operating and/or maintaining sewers and sewerage disposal works and waterworics facilities, and purchasing and acquiring the necessary land, equipment and fiimishings for die aforesaid public works, improvements and facilities.

C. Sales and Use Tax (1985)

Proceeds of a 1/4% sales and use tax levied by the City (2009 collections, $111,699; 2008 collections, $113,503; 2007 collections, $119,453) beginning in April 1985 are dedicated to and may be used for any lawfiil corporate purpose.

D. Sales and Use Tax (2004)

Proceeds of a 1/4% sales and use tax levied by the City (2009 collections, $111,699; 2008 collections, $113,503; 2007 collections, $119,453) beginning in April 2004 are dedicated to and may be used for any lawfiil corporate purpose.

(4) Cash. Interest-Bearing Deposits and Investments

A. Cash and Interest-bearing Deposits

Under state law, the City may deposit fimds within a fiscal agent bank organized under the laws of the State of Louisiana, the laws of any odier state in the Union, or the laws of the United States. The City may invest in certificates and time deposits of the state banks organized under Louisiana law and national banks having principal offices in Louisiana. At June 30, 2009, the City had cash and mterest-bearing deposits (book balances) totaling $775,349 as follows:

Demand deposits $ 180,953 Time deposits 594,396

Total $ 775,349

Under state law, deposits, (or the resulting bank balances) must be secured by federal deposit insurance or similar federal security or the pledge of securities owned by the fiscal agent bank. The market value of the pledged securities plus the federal deposit insurance must at all times equal tbe amount on deposit with the fiscal agent bank. These securities are held in the name of the City or the pledging fiscal agent bank by a holding or custodial bank that is mutually acceptable to both parties.

29

CrrY OF JEANERETTE, LOUISL\NA


Deposit balances (bank balances) at June 30,2009, are secured as follows:

Bank Balances $ 882352

Federal Deposit Insurance 751,147 Pledged Securities 131,205

Total FDIC insurance and pledged securities $ 882.352

Custodial credit risk for deposits is the risk that in the event of the failure of a depository financial institution, the City's deposits may not be recovered or will not be able to recover collateral securities that are in the possession of an outside party. As of June 30, 2009, the City's total bank balances were fiilly insured and collateralized with securities held in the name of the City by the pledging financial institution's agent and therefore not exposed to custodial credit risk.

B. Investments

At June 30, 2009, the City's investments totaled $3,479,357 as follows:

Approximate Fair

Description Value Govemmental Activities:

Louisiana Asset Management Pool (LAMP) $ 1,544,243

Business-Type Activities: Louisiana Asset Management Pool (LAMP) 1,935,114

$ 3,479,357

LAMP is administered by LAMP, Inc., a non-profit corporation organized under the laws of the State of Louisiana. Only local governments having contracted to participate in LAMP have an investment interest in its pool of assets. The primary objective of LAMP is to provide a safe environment for the placement of public fimds in short-term, high quality investments. The LAMP portfolio includes only securities and other obligations in which local governments in Louisiana are authorized to invest in accordance with LSA-R.S. 33:2955.

GASB Statements No. 40, Deposit and Investment Risk Disclosure, requires the disclosure of credit risk, custodial credit risk, concentration of credit risk, and foreign currency risk for all public entity investments.

30



LAMP is a 2a7-like investment pool. The following facts are relevant for 2a7-Iike investments pools:

• Credit risk - LAMP is rated AAAm by Standard & Poor's.

• Custodial credit risk - LAMP participants' investments in the pool are evidenced by shares of the pool. Investments in pools should be disclosed, but not categorized because they are not evidenced by securities that exist in physical or book-entry form. The public entity's investment is with the pool, not with the securities that make up the pool; therefore, no disclosure is required.

• Concentration of credit risk - pooled investments are excluded from the 5 percent disclosure requirement.

• Interest rate risk - 2a7-like investment pool are excluded from this disclosure requirement, per paragraph 15 of the GASB 40 statement.

• Foreign currency risk - not applicable to 2a7-like pools.

The dollar weighted average portfolio maturity of LAMP assets is restricted to not more than 90 days, and consists of no securities with a maturity in excess of 397 days. LAMP is designed to be highly liquid to give its participants immediate access to their account balances. The investments in LAMP are stated at fair value based on quoted market rates. The fair market value of investments is determined on a weekly basis by LAMP and the value of the position in the extemal investment pool is the same as the value of the pool shares.

LAMP, Inc. is subject to regulatory oversight of the state treasurer and the board of directors. LAMP is not registered with the SEC as an investment company.

(5) Receivables

Receivables at June 30,2009 of $151,727 consist of the following:

Accoimts Less: allowance for uncollectibles

Net receivables


$ 48,387

$ 48,387

Business-Type Activities

$ 108,180 (4,840)

$ 103,340

Total

$156,567 (4,840)

$151,727

31



(6) Due from Other Govemmental Units

Amounts due from other govemmental units at June 30,2009 consisted of the following:

Govemmental activities: General Fund:

Louisiana E>epartment of Transportation State of Louisiana - Homeland security State of Louisiana Department of Revenue City Court Iberia Parish Govemment

Total general fimd

$ 2,775 30,544 2,125

12,059 30,385

77,888

Special Revenue Funds: Iberia Parish School Board 69,691

Busmess-type activities: State of Louisiana - Homeland security 19,860

Total due from other govemmental units $ 167.439

(7) Restricted Assets

Restricted assets consisted of the following at June 30, 2009:


Cash and Interest bearing deposits $ 89,916 Investments-

LAMP 675,539

Total $ 765.455

32

CIFY OF JEANERETTE, LOUISLANA

Notes to Financial Statements (contmued)

(8) Capital Assets

Capital asset activity for the year ended June 30,2009 was as follows:

Governmental activities: Capital assets not being depreciated:

Land Constmction in progress

Capital assets being depreciated: Buildings Improvements, other than buildmgs Equipment, fiimiture and fixtures

Totals Less accumulated depreciation:

Buildings Improvements, other than buildings Equipment, fiimiture and fixtures

Total accumulated depreciation

Govemmental activities, capital assets, net

Business-type activities: Capital assets not being depreciated:

Land- sewer system Capital assets being depreciated:

Water system Sewer system Machmery and equipment

Totals Less accumulated depreciation:

Water system Sewer system Machinery and equipment

Total accumulated depreciation

Business-type activities, capital assets, net

Balance 07/01/08

$ 266,040 161,716

12,234,800 4,747,974 1,451,563

18,862,093

9,625,341 2,020,739

895,747

12,541,827

$6,320,266

Balance 07/01/08

Additions

$ 123,870

-

57,186 184,293

365,349

282,088 140,865 133,561

556,514

$091,165^

Additions

Deletions

$ -

-

-

65,602

65,602

_

-

65,246

65,246

$ 356

Deletions

Balance 06/30/09

$ 266,040 285,586

12,234,800 4,805,160 1,570,254

19,161,840

9,907,429 2,161,604

964,062

13,033,095

$6,128,745

Balance 06/30/09

$ 72,102 $ 72,102

7,847,561 7,380,599

229,368

15,529,630

2,767,089 3,371,416

113,008

6,251,513

$9,278,117

11,727 57,629

105,911

175,267

263,315 173,621 26,228

463,164

$(287,897) $

7,859,288 7,438,228

335,279

15,704,897

3,030,404 3,545,037

139,236

6,714,677

- $8,990,220

33



Depreciation expense was charged to fimctions/programs as follows:

Govemmental activities: General govemment $ 325,489 Public safety-

Police 73353 Fire 26,476

Highway and Streets 131,196 Total depreciation expense - governmental activities $ 556,514

Business-type activities: Water $ 281,767 Sewer 181,397

Total depreciation expense - business-type activities $ 463.164

(9) Accounts and Other Payables

The accounts and other payables consisted of the following at June 30,2009:

Accounts Accmed salaries Accmed interest

Totals

Govemmental Activities

$ 42,661 23,678 80,616

$ 146,955


$

L

79,415 3,844

83,259

Total $ 122,076

27,522 80,616

$230,214

34

CITY OF JEANERETTE, LOUISLANA


(10) Changes in Long-Term Liabilities

The following is a summary of long-term liability transactions of the City for the year ended June 30,2009:

Governmental activities:

General obligation bonds

General obligation refimding bonds

Compensated absenses

Total long-term liabilities

Business-type activites:

Compensated absenses

Customer's deposits payable

Total long-tenn liabilities

7/1/2008

$1,849,808 659,000

12,166

$2,520,974

$ 1,311 115,613

$ 116,924

Additions

$

L

$

L

-

-1,591

1,591

-788

788

Reductions/

Payments

$ 20,935

245,000 -

$ 265,935

$ 464 -

$ 464

6/30/2009

$1,828,873

414,000 13,757

$2,256,630

$ 847 116,401

$ 117,248

Due Within One Year

$

L

$

L

21,799 54,000

-

75,799

--

-

General obligation and general obligation refimding bonds issued for govemmental activity purposes are liquidated by debt service fimds.

The liability for compensated absences is expected to be liquidated by the fimd incurring the liability.

Long term liabilities for business-type activities are satisfied by the City's enterprise fiind (the utility fimd).

35



General obligation and general obligation refimding bonds at June 30,2009 are comprised of the following individual issues:

General Obligation Bonds:

$1,870,000 2005 General Obligation Bonds due in annual instalhnents of $20,000 to $94,000 tiu-ough 7/13/2045; interest at 4.125% payable fi^m the levy of a specific ad valorem tax $1,828.873

General Obligation Refimding Bonds:

$572,000 Refimdmg Bonds, Series 2005 due in annual instalhnents of $6,000 to $65,000 through 3/1/2016; interest at 3.75%; payable from the levy of a specific ad valorem tax 414,000

Total general obligation refunding bonds $ 414.000

36



The annual requirements to amortize all long-term debt outstanding as of June 30,2009, including interest payments, are as follows:


Year Ending June 30

2010 2011 2012 2013 2014

2015-2019 2020-2024 2025-2029 2030-2034 2035-2039 2040-2044 2045-2046

General Obligation

Principle Interest

$ 21,799 22,698 23,635 24,609 25,625

144,878 177,328 217,046 265,660 325,163 397,994 182,438

?l,828,873

$ 75,441 74,542 73,605 72,631 71,615

34U22 308,872 269,154 220,540 161,037 88,206 11,351

$1,768,316

General Obligation Refimding

Principle

$ 54,000 53,000 56,000 60,000 64,000

127,000 -

--

---

$414,000

; Bonds Interest

$15,525 13,500 11,513 9,413 7,162 7,200

-

--

---

$64,313

Total Principle

$ 75,799 75,698 79,635 84,609 89,625

271,878 177,328 217,046 265,660 325,163 397,994 182,438

$2,242,873

Interest

$ 90,966 88,042 85,118 82,044 78,777

348,522 308,872 269,154 220,540 161,037 88,206 1U51

$1,832,629

In accordance with Louisiana Revised Statute 39:562 the City is legally restricted from incurring long-term bonded debt in excess of 35% of the assessed value of taxable property. At June 30, 2009, die statutory limit is $7,423,537 and the outstanding bonded debt fimded by ad valorem taxes, including mterest, total $4,075,502.

(11) Emplovee Retirement

Eligible employees of the City participate in three multiple - employer public employee retirement systems (PERS) which are controlled and administered by separate boards of trustees. These retirement systems provide retirement, disability and death benefits to plan members and their beneficiaries. Benefits under each system are established and amended by state statutes. Pertinent information for each system follows:

A. Municipal Emplovee's Retirement System

Plan members are required to contribute 9.25% of their annual covered salary to the system while the City is required to contribute at the statutory rate of 13.50% of the total annual covered salary. The City's contributions to the system for the years ended June 30, 2009, 2008, and 2007 were $82,815, $87,672, and $88,461, respectively, equal to the required contribution for each year.

A publicly available financial report that mcludes financial statements and required supplemental financial information may be obtained by writing to the Municipal Employee's Retirement System, 79337 Office Park Blvd., Baton Rouge, LA, 70809.

37



B. Municipal Police Employee's Retu^ment System

Plan members are required to contribute 7.5% of their annual covered salary to the system while the City is required to contribute at the statutory rate of 9.5% of contributions to the system for the years ended June 30, 2009, 2008, and 2007 were $29,139, $31,676, and $39,040, respectively, equal to the required contribution for each year.

A publicly available financial report that includes financial statements and required supplemental financial information may be obtained by writing to the Municipal Police Employee's Retirement System, P. O. Box 94095, Baton Rouge, LA 70804-9095.

C. Firefighters Retirement System

Plan members are required to contribute 8% of their annual covered salary to the system while the City is required to contribute at a statutory rate of 12.5% of the total annual covered salary. The City's contributions to the system for the years ended Jime 30, 2009, 2008 and 2007 were $4,282, $3,644, and $2,973, respectively, equal to die required contribution for each year.

A publicly available financial report that includes financial statements and required supplemental financial information may be obtained by writing to the Firefighters Retirement System, P. O. Box 94095, Capitol Station, Baton Rouge, LA 70804-9045.

(12) Contingencies

A. Litigation and Claims

At June 30,2009, the City is not involved in any threatened or pending litigation.

B. Grant Audits

The City receives grants for specific purposes that are subject to review and audit by govemmental agencies. Such audits could result in a request for reimbursement by the grantor for e?q)enditiires disallowed under the terms and conditions of the appropriate agency. In the opinion of the City, such allowances, if any, will not be significant.

38

CFFY OF JEANERETTE, LOUISIANA


(13) Compensation of City Officials

A detail of compensation paid to elected officials for the year ended June 30,2009 follows:

Arthur L. Verret, Mayor Board of Aldermen

Betty Bouie Sanders Derise Aprill Foulcard Vemell Mitchell Kenneth Kem

(14) Risk Management

The City is exposed to risks of loss in the areas of health care, general and auto liability, property hazards and workers' compensation. All of these risks are handled by purchasing commercial insurance coverage. There have been no significant reductions in the insurance coverage during the year.

(15) Interfimd Transactions

A. Interfimd balances

The composition of interfimd balances at June 30,2009 consisted of the following:

Receivable Fund Payable Fund Amount

Compensation $ 6,300

5,100 5,100 5,100 5,100 5,100

$ 31,800

Term Expires June 30,2011

June 30,2011 June 30,2011 June 30,2011 June 30,2011 June 30,2011

General Nonmajor govemmental Utility Utility

Total

Drainage Utility General Drainage

$

$

24,910 9,536 3,455 2,098

39,999

These receivables and payables reverse in the normal course of operations. All remaining balances resulted from time lag between the dates that (1) interfimd goods and services are provided or reunbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payment between the fimds are made.

39



B. Interfimd transfers

Transfer In

General

$ 410,000 190,000

$600,000

Nonmajor Govemmental

$ 102,712 8,380

$ 111,092

Utility

$

95,000 $ 95,000

Total

$ 102,712 418,380 285,000

$ 806,092

Transfer Out: General 1% Sales Tax Nonmajor Govemmental

Totals

Transfers are used to (a) move revenues from the fimd that statute or budget requires to collect them to the fimd that statute or budget requires to expend them and to (b) use unrestricted revenues collected in the general fimd to finance various programs accounted for in other fimds in accordance with budgetary authorizations.

(16) New Accoimting Pronouncements

In November 2004, the Govemmental Accounting Standards Board (GASB) issued Statement 45 "Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions." This statement requires the accrual of postemployment benefits for retired employees. The City is required to implement this standard for the fiscal year ending June 30, 2010. The City has not yet determmed the fiill impact that adoption of GASB Statement 45 will have on the financial statements.

40

REQUIRED SUPPLEMENTARY INFORMATION

41

CFTY OF JEANERETTE, LOUISLANA General Fund

Budgetary Comparison Schedule For the Year Ended June 30, 2009

Revenues: Taxes Licenses and permits Intergovernmental Fines and forfeits Miscellaneous

Total revenues

Budget Original

$ 821,600 175,500 242,550

22,000 455^00

1,716,850

Final

$ 848,133 174,000 299,383

22,500 417,400

1,761,416

Actual

$ 843,185 185,234 387,683 25,203

378,720 1,820,025

Variance with Final Budget

Positive (Negative)

$ (4,948) 11,234 88,300 2,703

(3S,6S0) 58,609

Expenditures: General government Public safety:

Police Fire

Highways and streets Coital outlay

Total expenditures

Deticiency of revenues over expenditures

945,013 864,977 821,929 43,048

723,731 86,190

652,056 173,500

2,580,490

(863,640)

747,629 95,519

700,270 273,901

2,682,296

(920,880)

770,057 90,299

623,815 253,703

2,559,803

(739,778)

(22,428) 5,220

76,455 20,198

122,493

181.102

Odier financing sources: Transfers in Transfers out

Total other financing sources

Net changes in fimd balances

Fund balance, beginning

Fund balance, ending

420,000 600.000 600.000 - (102,711) (102,712)

497^89 497.288 420.000

(443.640) (423,591)

1.277,195 1,119.690

(242.490)

1.119,690

ID 11)

181,101

$ 833,555 $ 696,099 $ 877,200 $ 181,101

See accompanying notes to budgetary comparison schedules.

42

CFFY OF JEANERETTE, LOUISLWA Special Revenue Fund

1% Sales Tax Fund

Budgetary Comparison Schedule For die Year Ended June 30,2009

Revenues: Taxes . Miscellaneous - interest

Total revenues

Expenditures: General government Capital outlay

Total expenditures

Budget Original

$ 385,000 200

385,200

46.133 1.600

47,733

Final

$ 405,000 200

405.200

44,384 1,482

45,866

Actual

$ 446,794 214

447.008

43,915 1,482

45,397

Variance widi Final Budget

Positive (Negative)

$ 41,794 14

41.808

469

469

Excess of revenues over expenditures

Other financing sources (uses): Transfers out

Total other financing sources (uses)

Net changes in fimd balances

Fund balances, begiiming

Fund balances, ending

337,467 359,334 401,611 42.277

(332,102) (332,102)

5,365

100,000

$ 105,365

(418,380) (418,380)

(59,046)

159,951

$ 100,905

(418,380) (418,380)

(16.769)

159.951

$ 143J82 $ _

--

42,277

42,277

See accompanying notes to bud^tary comparison schedules.

43

CITY OF JEANERETTE, LOUISIANA Special Revenue Fund

Drainage and Mosquito Fund

Budgetary Comparison Schedule For die Year Ended June 30,2009

Revenues: Intergovernmental

Total revenues

Expenditures: General government Coital outlay

Total expenditures

Net changes in fund balances

Fund balances, beginning

Fund balances, ending

Budget Original

$170,000 7,500

177,500

156.000

156,000

21.500

331.736

5353,236

Final

$148,328 3,470

151.798

156,000 lUOO

167,300

(15,502)

331,736

$316,234

Actual

$148,328 3,312

151,640

161,029 28,113

189.142

(37,502)

331,736

$294^34


Positive (Negative)

$ (158) (158)

(5.029) (16.813) (16.813)

(16,971)

.

$ (16.971)

See accompanying notes to budgetary comparison schedules.

44

CFFY OF JEANERETTE, LOUISLWA

Note to Budgetary Comparison Schedules

1) Basis of Accounting

The budgets for the General Fund, the 1% Sales Tax and Drainage and Mosquho Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgeted amounts are as originally adopted or as finally amended by the City.

2) Excess of Expenditures over Appropriations

The following fimd incurred an excess of expenditures over ^propriations for the year ended June 30, 2009:

Special Revenue Fund: Drainage and Mosquito Fund $ 16,813

The excess expenditures were covered by available fimd balance in the fimd.

45

OTHER SUPPLEMENTARY INFORMATION

46

CFFY OF JEANERETTE, LOUISL\NA General Fund

Schedule of Revenues Compared to Budget For die Year Ended June 30,2009

Budget Original Final Actual


Positive (Negative)

Taxes: Ad valorem Franchise-

Electric Natural gas Cable TV Telephone

Total taxes

Licenses and permits: Liquor and beer hcenses Occupational licenses Building permits ElecUical permits Plumbing permits Moving permits Air conditioner permits

Total licenses and peraiits

$560,000

170,000 41,600 35,000 15.000

821.600

155.000 10,000 3,000 3.000 3,000 1,500

175.500

$583,533

175.000 41,600 35.000 13.000

848,133

155,000 10,000 3.000 2.000 3,500

500 174,000

$582,737

170,460 40,734 36,582 12,672

843.185

164,627 11.357 3.600 1.800 3,475

375 185,234

(796)

(4,540) (866)

1,582 (328)

(4,948)

9.627 1,357

600 (200)

(25) (125)

11.234

Intergovernmental: Federal grants -

FEMA State of Louisiana -

Department of Revenue and Taxation: Beer taxes Tobacco Tax

Department of Transportation: Grass cutting

LGAP Grant Lousiana Commission on Law Enforcement Act 18 of 2007 State Grant

Iberia Parish -Historic District Police Pay Supp - Sheriff Marshal's' Salary Refund Deputy Cleric Salary Refimd Salary Refund- Drug Interdiction Fire Protection

Total intergovernmental

50,000 140,161 90,161

8,000 9,000

5,550 ---

-

20.000 13.000

152,000 8.000

27.000 242.550

10,000 -

5,550 10,000

1,796 47.500

1,537 28,000 30.000 80,000 8.000

27,000 299,383

9.978 -

5,550 -

1,796 47,500

1,537 26,699 34,990 84,307

8.000 27.165

387,683

(22) -

-

(10.000) --

.

(UOl ) 4,990 4,307

-165

(U861)

(continued)

47

CITY OF JEANERETTE, LOUISIANA General Fund

Schedule of Revenues Compared to Budget (continued) For die Year Ended June 30,2009

Fmes and forfeits: Fines and forfeits

Total fines and forfeits

Miscellaneous: Interest Police Accident reports Bonding Fees - Police Department Appearance/witness fees Sales of Capital Assets Reimbursement-Drainage Insurance proceeds Martm Mills Lease Hud Section 8 Reimbursements Other sources

Total miscellaneous

Total revenues

Budget Origmal

$ 22,000 22,000

47,000 1,200

100 17,000 3,000

85,000 -

260,000 2,400

39,500

455,200

$1,716,850

$

Final

22,500 22,500

12,500 1,000 1,800 9,000 3,000

80,000 -

260,000 2,400

47,700

417,400

$ 1,761,416

Actual

$ 25,203 25,203

12,504 1,049 1,703 8,400

245 62,236 10,212

248,063 2,400

31,908

378,720

$ 1,820,025


Positive (Negative)

$ 2,703 2,703

4 49

(97) (600)

(2,755) (17,764) 10,212

(11,937) -

(15,792)

(38,680)

$ (31,552)

48

CFTY OF JEANERETTE, LOUISIANA General Fund

Schedule of Expenditures Compared to Budget For die Year Ended June 30,2009

(jeneral Govemment -Salaries-administrative Salaries-executive Legal and professional Acx:oimting and auditing fees Insurance Retirement FEMA expense Telephone Utilities Dmg testing expense Inspection fees Office supplies and expenses Payroll taxes Pest control Recordation and cancellation Repairs and maintenance Membership dues Meetings & conventions Cooperative Endeavor Agree -1 -and Miscellaneous

Total general govemment

Budget Original

$287,193 25,500 32,000 39,400

394,875 40,750 -7,100

13,750 3,200

15,000 36,060 9,435 1,000 5,000

20,850 1,500 1,900 1.500 9,000

945,013

Final

$ 234,022 25,500 50,000 44,970

277,918 29,270 70,600 7,200

14,000 3,140

15,000 41,025 9,040

840 6,000

24,252 1,300

800 2,500 7,600

864,977

Actual

$241,135 25,500 54,727 46,521

218,446 28,879 70,635

7,507 13,839 3,007

17,684 42,946

8,660 840

7,147 24,071

1,309 801

2,500 5,775

821,929


Positive (Negative)

$ (7,113) -

(4,727) (1,551) 59,472

391 (35)

(307) 161 133

(2,684) (1,921)

380 -

(1,147) 181

(9) (1)

-1,825

43,048

(continued)

49

CFTY OF JEANERETTE, LOUISLANA General Fund

Schedule of Expenditures Compared to Budget (continued) For die Year Ended June 30,2009

Public safety: Police -

Salaries Payroll taxes and employee benefits Insurance Retirement Prisoner expenditures Repairs and maintenance Auto expense Meetings & conventions Utilities and telephone Uniforms Office supplies Training Miscellaneous

Total police

Budget Original

552,006 12,000 21,500 42,000

6,500 4,500

35,500 1,000

18,000 14,000 13,325 2,700

700

Final

497,000 10,905 74,185 33,500 13,000 10,924 55,800

800 23,800 16,835 9330

800 750

Actual

505,897 10,501 74,449 35,084 13,937 10,828 59,612

747 23,085 25,987

9,150 29

751


Positive (Negative)

(8,897) 404

(264) (1,584)

(937) 96

(3,812) 53

715 (9,152)

180 771

(1) 723,731 747,629 770,057 (22,428)

Fire-

Salaries

Payroll taxes and employee benefits

Insurance

Fire tmck maintenance and repairs

Maintenance of fire station and equipment

Utilities and telephone

Uniforms and supplies

Training

Miscellaneous

Total fu^

32,850

4,365

16,075

22,200

2,000

4,900

450

1,700 1,650

37,500

5,385

22,250

17,850

1,300

6,100

250

1,824 3,060

36,850

5,316

19,344

16,585

1,264

6,094

251

1,824 2,771

650

69

2,906

1,265

36

6

(1)

289

86,190 95,519 90,299 5,220

(continued)

50

CFTY OF JEANERETTE, LOUISL\NA General Fund

Schedule of E?q)enditures Compared to Budget (continued) For die Year Ended June 30,2009

Highways and streets: Salaries Payroll taxes and employee benefits Retirement Auto repairs and mamtenance Equipment maintenance Equipment rental Gradall maintenance Materials, gravel and hauling Insurance Paint and signs Parish trustee meals Building repairs and maintenance Tool and equipment Utilities and repair Street lighting

Total highways and streets

Capital outlay: General government -

Buildings Portable buildings

Office fixtures and equipment Public safety -

Police Fire

Highways and Streets Total capital outiay

Total expenditures

Budget Original

330,298 9,065

33,763 46,300 15,500 2,550 2,000

26,500 32,680 3,500 7,000

12,200 6.300

49.400 75.000

652.056

Fmal

302,570 11,200 31,400 38.150 16,000 9,050

450 27,000 89,600

1,500 9,500

12,200 8,600

68.050 75,000

700,270

Actual

265,968 11,380 31,487 36.823 20.678

9.108 445

21,832 89,021

1324 9.693 2.073 7.949

40,560 75.474

623.815


Positive (Negative)

36,602 (180)

(87) 1,327

(4.678) (58)

5 5,168

579 176

(193) 10,127

651 27.490

(474) 76.455

50.000

72.000 10.000 41,500

173,500

$ 2.580.490

62,000 5,565

23,847

147,814 10.541 24.134

273,901

$ 2^82,296

64,337 5,563

2 3 3 8

114,346 10,541 35.618

253.703

$ 2.559,803

(2,337)

549

33,468

(11,484) 20,196

$ 122,491

51

• ^ to

s

O § >^2

u

u OI U ON

SO o

o — (^ etj ••

CQ ^

I-e o U

•a o

SI

5 |

o

5

8S CQ

<2 U

a El

CO - ^

(J i§ i t3

'J

^1 CO <

g.s

§ 3 ; : ; 3

13

I I I I I I I

I I I

( I I I

I I I I I I I I I I

I I I I • I I

OH"

• • i l l • o

I • I

I I • I I

I t I I I • I

I I I I I I I

f S | I I I i • • I

SO t r t

' ' ' ' 0\ Os"

_ o ' tn

s «

' • ' ' 0 \ Os

I I I I O S

0\

s s

> I I

I I I I

I I I

I I •

> I I

o o

o o O

«4

1

•

23,6

50

9,01

5

o so ri

o os'

o

fn" es

•n o Os"

oC m

1 oT m

oo

oT

o m

s

- H O

n 3

o n * 4

'^ r*-t n O

-* r * >r>

*

• V

t -»n HO

„^ fn o

_ s VO

_

CN

I ill c o o

_ „ o o «

3 i J

ill i 1 a .-2 t2

-II •8

g.-S d =

l l O S S

o

^11

I.

s i l l la ^ c s

-1 •at i-S

^1

vo ^ fM fS P- - -

r - " o r s OH O -

I I I

. o -o

HO oo m HO •n oo OH" OH"

«4

m

486.537

141.212

266.493

1 HO

•s

o o

-Si •" o M "s CQ bO

c

o en 4> £3 3

*—»

o U

III

i I

K o u O — w

ill < §-9

8 S

S o

I

•3 e

o (S

li

o

s . . r-"

• I I I vo HO*

1 1 0 I I I i t

I I I I I I I

(N e ^ r - 1^ \Q I I I I I I I I t o

' M-» e~- I I I I I

a

0 OH

I vo >rt I I I I I

HO

' fn

?J

• I I I I

I I I

I I I

270

tA

I I I

I I I

I I I I

I I I I

"X"

m vo

• 00 00 OH*

^

vo m ' -(N

HO fn

n. % cs

**

~ M

0 f H HO I N es

„^ 0

2 r^ r4

f A

« £ O a.

! Ill if •g c ® ° ts a

•?§ l3 ^ l l - i a

till - 1 8 i

I 111 1 S S S i2

cd 3

^ CO

§

O §

u

8 cd

CQ

00

T3 <N

| 5

S.' T3 T3

•a X LLl

« s

(Si o o

u J3 u

C^ 00

.S c B o U

•3

So" 1

2 -5

1^ 3 5

1.1 o > u 4?

I 1 ^ 2 g

oo Of

II ^ 5

^^ i U a. E

I I I I • I i

I I I I

I I I I

?3

^ c • ^ Q

^ | | 3* -O

CO <

? l ^ « s l O CO es

I I 51 OH 1/3

1. ^ •§ r- T3 Ov M

1

V *

gn

^* ~ v »

g. "*--M

gH

-*

1 I

1

VO

1 I

HO

^ 1

•

^ 00

" •

<N oo_ V M

"

»n

r4"

r o oo HO r-'

o OH — vo

a a

oo o o

*%

?

a a

o 5 oT es

oo Ov" fn

«i4

5

I I I

I I I

S

s § v%

s.

,•—«, g • n 0 \ - v

«n m o_ Ov' Tj-

'(J-

r* «/^" vo

«A

I I I I I

s g •n* S.

s g >n Ov

"•

i n V M

r--

vo —• OH,

fn "

^

_ M

f n o _

_r vo

« 4

C fi ' 5

PIIHII I a l l s | | £ ^ S 3 ^

1M "O

J b t s O

g e

.S.8 I 1 5 M

^ ^

"3 B

l i P

g

« ^ m

r* ^ m

es

eo vo HO HO" w% r<

_ w% «o «n

oo OH rn i_a

OO fS rn •r ' 00 r-

•rj »o — tr> fn o <N M f n Oi fn ^ O OH OV

" r i vi" ^* oo HO 0>

rv* 5 -s

— 00 — fN

« m O fn <s r -

•s PI » =• £

* 1 o

I I I I

I I I

HO

o HO vo' " •

g vo HO' f—I

M

.2 8

i l l I I I I

1 § .

v o n

§ 1 1

I I I I I < I 1 > vo

fN

M

I • I I I I

o oo g OH

OO

5 o" f—I

OO OO

o *rt es

HO m

<=> HO CS

3 HO

s • -m — Ov r^ o" -o fN r^

^ «r> O^ B M

o «n

»/ fS

_ o r -HO e

(N

I c o 03

tm . 5

s

I I I

O eo O t -

o u

i I 1 =3 • • S & & -3 « g 2 ^ o o J> s W

K O u u £ S

O i i

i3


Schedule of Net Assets June 30,2009

With Comparative Totals as of June 30,2008


Cash and interest-bearing deposits Investments Receivables, net Due from other govemmental units Other receivables Interfund balances Inventory Prepaid items

Total current assets

Noncurrent assets: Restricted assets Capital assets, net

Total noncurrent assets

Total assets

LlABlLl'llKS Current liabihties:

Accounts and other payables Deferred revenue Bonds payable

Total ciurent liabilities

Noncurrent liabilities: Accrued liabilities Customers' deposits payable Bonds payable

Total noncurrent liabilities

Total liabilities

NET ASSETS Invested in coital assets, net of related debt Restricted for

Debt service Other purposes

Unrestricted Total net assets

Govemmental Activities

$ 590,246 1.544,243

48.387 147,579

445 3.983

10,526 61,179

2,406,588

-6.128,745 6,128.745

8,535.333

146.955 131391 75,799

354,145

13,757 -

2,167.074 2,180.831

2,534,976

3,885.872

486.537 126,955

1,500,993 $ 6,000357


$ 95,187 1.259.575

103,340 19,860

-(3,983) 5,335 5,888

1,48532

765.455 8.990,220 9.755,675

11,240,877

83.259 1,439

-84,698

847 116.401

-117,248

201,946

8,990,220

--

2.048,711 $11,038,931

Total 2009

$ 685.433 2.803,818

151.727 167,439

445 -

15,861 67,067

3.891,790

765.455 15,118,965 15.884,420

19,776,210

230,214 132.830 75,799

438,843

14,604 116,401

2,167.074 2,298,079

2,736,922

12,876,092

486,537 126,955

3,549,704 $17,039,288

2008

$ 815,630 3324,378

163,438 160350

--

17.124 67,261

4.548.181

381,961 15.598385 15.980.346

20,528,527

382,297 -

170.935 553.232

15,068 115,613

2337,873 2,468,554

3,021,786

13,004.938

560.192 93,161

3,850,041 $17,508,332

56

O^ u~i O^ r* O O OS ^ O^ CN ^ ^ Tf oT Tf TT 00 OO »r» ^ O

.-H

o t-^ r-^ t—^

TJ-•w-

en (N o 00 o r-». ^ H w '

VO oo o ^ r* w-i vo" Tt CN Ov r- r-

-^ m 00 ^ oo -H

» K en »n <n

CTH VO (N CN r- «n

I •» ». o\ r-• ^ ^

en 00 Tf ^ 00 »n • %

00 ^

• •

00 o •p^

vo O ^ CN ^^ t^ Ov vo OH

• K .

ON O CN 00 O Ov ^—' " J- Hw-

r-vo

* i

o

f

•<T

>n ^ K t - 9

• ^

O

»^ CN en t-" CN

(N N-/

CN O In Ov en oo Ov" «" VO 00 r~ t--

00 r-Ov oC

»n TT CN

ON r^ ^ 00 r- t^

ft K

oo vo en ''T

vo O en • I

1—1

i-H

r-r 00 oo (N >n •» r-

•-H

CN m en oo" o >n K r-vH 6Q

CN en e«i oo" o »n r-'

00 00 CN oC m o p-" 1—1

w

v»

^ «n ^ • 4

rv i-aa

^

»n

r-v^

TT

r - oo o o »n 00 00 rn CN CN

o

8 *> »n Ov

•n en i> ^

o r r ^ 00 o en 1—1

t - ^

^^ en o\ 00 en q^ ^ • ^

•- *o

00 o o cs o " en u

© i

00 vo Ov ^ vo <N ^ t--— Ov_ VO^ Ov OO oC O CN vo OO O 9v H© > ^ T t ' —

CN O »n Ov en oo ov" ^ " VO 00

oo >n CN o \ \ o o t ^ Tt - ^ t ^ o o Ov CN r^ Ov en o o\ o CN ^ >n

^ CN — OH

m o < ^ Ov <?H

CN vo m K. Ov Ov l-H

vo"

r-m en •.

^) f ^

vo 4ft

ON t=%

.— en ' ^

I s a

Ul

O

o

en O oo »n »n

vo 0 \ (N ^ 1 I I Ov

• ^

OV Ov o^ »n o

p- »n 00 en vo r -vo^ ^ «*V o T r-^ vo oo CN »n

en

»n »n

vo en

Ov Ov m o" m r-

oo »n TT » i

rn OJ

t «n o CN 00 r-

^H

o VO r^ Ov • ^

VO ^ r- — »n ov ^ r-- ^ o <> '^^ en r^ vo CN" S = !C<^

VO O'

n 00 o rn

CN

vo oo"

? • " ^

00

00 vo" IC s

43 V ti

a ^ 8 I J

•§• s

£^ <S ^ ^ u a

.it so CD

,o H

3

g

oo *n oo —

P- Ov OO —' P-' CN — Ov O CN -^ t-

p^ Ov en — CN Tj-vo vo ri O'OV Tt »n en •«* ^ Tj- m

«n *n o ^^ *n v i CN o en oCoo o" »n vo

;5s »n o •• n

o o '— vo

Ov P-

» •

o CN P-CN

*%

o »n •^ <^ u^ ^ en Tf o Tt <N en CN m ^

o o o vo" -

Ov 00 oo y-T en

r^ vo Ov »n vo Ov 00 r- (N p-rn '^ »n »n i— 00 Tf p^ o*-^ TT en Tj- ^ vo

^ oo en vo r- vo HO_ vo^ TT CN en o" TT CN m

«ft

CN

^ m Ov 0 \ ^ 00 en (N — (N

CN vo Ov — (N 1-H oo »n o" Ov" o" vo en ^ »n ^-

r-- CN vo Ov m -^ CN P^ m CN »n '^ vo" ^ O ^' oo Tf •—• \0

•^ CN ^ - H

- - < ^ OH «n O VO M vo

OO o Ov

'" 00 Tf CN

P-Ov f^

o (N P-CN

6ft

tn Ov Ov O Tf Ov »n en o o oo r^

00 »n 00 00 o CN (N

^ H

V i O P-" en • ^

CN

6ft

u o OI: .*i

o a

vo Tt CN CN P- — •^ en Tj-p-" o CN Ov O vo

m -^

m Ov (N 00 P^ en

vo 00 en vo m 00 Ov'ov"

CN

^ en en ov

CN

CN en tn '' 1

p^ o

en CN OO

( 1 f-OH en

&ft

6ft

r- CN en — m CN vo"^" OO TT

en Ov

1 (N

1 VO

6ft

O 00 P- o 00 ' o^ rn P '

CN

(N — -H HO »n vo rn

• ^

rn CN TI-" Ov CN

• ^

en CN • ^ '

o» CN

OJ — «n CN en

CN 00 ^ H

m • ^

CN OO 1-H

en ^

«n >n en t- • ^

1 —

6ft

00 wn

p- o 00 m vo ov oo i-H 00 T* cs r^ en Ov 00 -^ ''I , 00 -^ r " o ^' •^ CN p- ^ vo

6ft

OO vo OH

r.

3

>n P- >n o ^ m Ov^ C3 ^^ oTen en CN CN

-- 00 Ov vo en P-

' ^ r-" en 00

vo Ov CN r-»n «

»n o oo

o o ri

» i

p-p-00

00 vo ov

r .

o^

^ 6ft

•d c

s •o §3 9 S 2 « I •- 2 « o c g u u 3 3

-3

13

O

-s 00 en CN O oo ^ vo «n ov CN vo P^ •^^ ^ O »n 00 v T CN en 00 oo OH (N »n r - ^ O - ^

o O H VO^ 1 - ^

^ H

0 0 i - T

' ' I -en CN

»n oo

Ov r-vo_ CN Ov P -

m m O Ov (N —_ tn o\ rs oo

en

_rt o o

s ^. en

o o p -

vo"

•

CN «n CN ^ H

o m

( N

^ «n o " 0 0

r-p -( N

( N m vo

^ <n m o " o m

Ov v o r- - ^ O ^ O s _

oC P-" i n o

o »n

oo O H

en en

^ H

o vo • VO

T

en p-Ov

•> vo <n <n

en r-(> 1—t

«n vo

o o o »•

<n Ov^

P-o en

•» en en • ^

•. CN

OO o OH

' " 00 TT CN"

6ft

0 0 p -

K

f

CN 0 0

2. p -p -

O H * n O H ^

<>!« o en Ov CN

vo

C7V • ^

^^ wn vo en

<n en en Ov O H O H

* i * i m vo vo OH CN

— 1

«n o r .

«n 0 0 r*\ en"

o »n o n , - M

0 0

S ^ O . ^ l ^ " v O

— o P - 00

§ o^ «n Ov

0 0 o O i • f l ^

oo ^ " CN

OO »n 00^

oo o CN

»•

CN

6 f t

fe s -s

rt T - H

r^ 1 - H

CN »n

0 0 vo vo

' vo" »n CN

O H • ^

o . 1 - 1

vo

0 0 CN en w-T 0 0 p -

5 -

>n en m Ov Ov Ov

i n vo" vo Ov CN

Ov O r-o " O H

»n

ov

VO

• ^ "

O H

CN Ov O ^ H

^ H

^ H

o o o »n 0 0 CN

o

0 0 o Ov en p-

-

_ en »n en p ^ 0 0

CN

-* CN TJ-" OV 0 0

6 f t

CN

en

•. en

Q

3 »• >n

1, , vo

en

' • oo" CN

CN

^ CJV oo

CN o >n r-" en

vo en P-;^ 1 — •

en en

• *

en CN T f " C?v cs M

§i^

T f Ov P-vo"

5

^ CN

0 0 o o

»•

p -

?

p -Ov en w-T ' I -

_ ^ H

VO^ v H

o • ^

o 0 0 en 0 0 ,__•

;^

o 0 0 en oo ^ H

^

^ »n OH

Ov" >n *"

CN 00

en" • ^

6ft

»n - ^ en en o oo en 00 o CN ^ ^ CN vo CN r^ en * n P-^ »n oo • ^ 00 00 CN P^ oo ^ ^ m r n

6ft

Ov CN OH

p- Ov m en <n OH '— O o r ^ oo p-^ o " O en en p - OH CN »n P- vo (N

en O OO

r . Ov vn »n CN"

00 p -p -

K

<?v en p -

o Ov VO

ov" 1 - H

l - r t

o o CN P-^ r-0 0

6 f t

Vi

a l l U M w

8 ^ 1 S-

l l s l l £ | > l S | l l

O , U

00

.3 a

T3


Schedule of Net Assets Proprietary Fund

June 30,2009 With Comparative Totals as of June 30, 2008


Cash and interest-bearing deposits Investments Receivables, net Due from other govemmental entities Due fix>m other frinds Inventory Prepaid items

Total current assets Noncurrent assets:

Restricted assets -Cash and interest-bearing deposits Investments

Capital assets, net of accumulated depreciation Total noncurrent assets

Total assets

LIABILITIES Current liabilities:

Accoimts payable Accrued liabilities Deferred revenue Due to other fimds


Noncurrent liabilities: Accrued liabilities Payable from restricted assets -

Customers' deposits payable Total noncurrent liabilities

Total liabilities

NET ASSETS Invested in capital assets Unrestricted

Total net assets

Enterprise Fund 2009

$ 95,187 1,259,575

103340 19,860 5,553 5,335 5,888

1,494,738

89,916 675,539

8,990,220 9,755,675

11,250,413

75324 7,935 1,439 9,536

94,234

847

116,401 117,248 211,482

8,990,220 2,048,711

$11,038,931

2008

$ 105,878 1,621,563

104,223 -

4,524 6,598 7,177

1,849,963

56,809 325,152

9,278,119 9,660,080

11,510,043

52,141 22,673

-9,535

84,349

1311

115,613 116,924 201,273

9,278,119 2,030,651

$11,308,770

60


Schedule of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Fund

For the Year Ended June 30,2009 With Comparative Totals for the Year Ended June 30,2008

Operating revenues: Charges for services -

Water sales Sewer service charges Garbage revenue Connections, installations, etc. Penalties

Intergovernmental Miscellaneous

Total operating revenues

Operating expenses: Chemicals Consulting and testing fees Water certification fees Depreciation expense Equipment rental Garbage service contract Insurance Miscellaneous Office expense Payroll taxes Salaries and benefits Supplies and repairs Utilities and telephone

Total operating expenses

Operating loss

Enterprise 2009

$ 397,605 284,633 245,694

10,879 28,995 31,660 31,992

1,031,458

128,298 21,840 21,615

463,164 7,171

192,904 71,938

1,819 13,939 2,674

194,937 150,125 178,188

1,448,612

(417,154)

sFund 2008

$ 417,673 292,295 243321

15,995 28,649

-

19,168

1,017,101

120,124 21,840 30,781

450323 4,151

192368 59,639

1,256 14,933 2,171

166,529 201397 163,265

1,428,777

(411,676)

(continued)

61


Schedule of Revenues, E?q)enses, and Changes in Fund Net Assets (continued) Proprietary Fund

For the Year Ended June 30, 2009 With Comparative Totals for the Year Ended June 30,2008

Nonoperating revenues (expenses): (Loss) on disposition of assets Capital grant proceeds Insurance proceeds Interest income

Net nonoperating revenues

Loss before transfers

Transfers

Change in net assets

Net assets, beginning

Net assets, ending

Enterprise Fund 2009

-

28,507 23,808

52315

(364,839)

95.000

(269,839)

11308,770

$11,038,931

2008

(25) 40,000

-

73,250

113,225

(298,451)

95,000

(203,451)

11,512,221

$ 11308,770

62


Schedule of Cash Flows Proprietary Fund


Cash flows fix)m operating activities: Receipts from customers Receipts fix)m other govemmental entities Payments to suppliers Payments to employees


Cash tlows from noncapital fmancing activities: Payments from other funds Other

Net cash provided by noncapital fmancing activities

Cash flows frx>m capital and related financing activities: Acquisition of property, plant and equipment

Net cash used in capital and related financing activities

Cash flows from investing activities: Maturities of investments and interest-bearing deposits Interest on investments

Net cash provided by (used in) investing activities

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents, beginning

Cash and cash equivalents, ending

Enterprise 2009

$ 981,609 33,099

(686,073) (288,842)

39,793

93,971 28,507

122,478

(175,265)

(175,265)

11,601 23,808 35,409

22,415

162,688

$ 185,103

iFund 2008

$1,019,886 -

(711,231) (213,637)

95,018

94,410 (25)

94385

(140,045)

(100,045)

(172,682) 73,250

(99,432)

(10,074)

172,762

$ 162,688

(continued)

63


Schedule of Cash Flows (continued) Proprietary Fund


Enterprise Fund 2009 2008

Reconciliation of operating loss to net cash used by operating activities: Operating loss Adjustments to reconcile operatmg loss to net cash used by

operating activities: Depreciation Changes in current assets and liabilities:

(Increase) decrease in accoimts receivable Decrease in mventories (Increase) decrease in prepaid items Increase (decrease) in accounts payable Increase (decrease) in accmed liabilities Increase (decrease) m deferred revenue


Reconciliation of cash and cash equivalents per statement of cash flows to the balance sheet

Cash and cash equivalents, beginning of period -Cash - unrestricted Cash - restricted


Cash and cash equivalents, end of period -Cash - unrestricted Cash - restricted


Net increase (decrease) m cash and cash equivalents

$ (417,154) $(411,676)

463,164

(18,977) 1,263 1^89

27,274 (18,505)

1,439

$ 39,793

450323

972 -

1,201 37,683 16,515

-

$ 95,018

$ 105,879 56,809

162,688

95,187 89,916

185,103

$ 22,415

$ 69,392 103370

172,762

105,879 56,809

162,688

$ (10,074)

64


Schedule of Number of Utility Customers June 30,2009

Records maintained by the City indicated the number of customers being served during the month of June, 2008 were as follows:

Department Residential Commercial Water (metered) 2,075 142 Sewerage 2,050 33 Sanitation 1,914 •

* Breakdown between residential and commercial sanitation customers was not available.

65

CFTY OF JEANERETTE, LOUISLANA

Schedule of Insurance in Force June 30, 2009

Description of Coverage

Workmen's Compensation -Employer's liability

Surety Bonds -Mayor and Town Cleric Chief of Police Employee dishonesty

Policemen's Professional Liability

Public Officials Errors and Omissions

Comprehensive General Liability, Bodily Injury, and Property Damage

Comprehensive Automobile Liability

Fire, Lightening, and Extended Coverage -Buildings and contents, all risks except flood

and earthquake

Coverage Amounts

1,000,000

160,000 10,000 80,000

500,000

500,000

500,000

500,000

4366,662

66


Schedule of Aged Accounts June 30,2009

Under 30 days $ 78,912 31 to 60 days 1,475 61 to 90 days 9,231 Over 90 days 18,462

Total receivables $ 108,080

67


Schedule of Water Rates June 30, 2009

Residential: $9.00 per month for the first 2,000 gallons $1.70 per thousand or part thereof over 2,000 gallons

Commercial: $9.00 per month for the fu^ 2,000 gallons (5/8" - 1" valve) $11.20 per month for the fu^ 2,000 gallons (1-1/2" valve) $13.44 per month for the first 2,000 gallons (2" valve) $19.04 per month for the first 2,000 gallons (3" valve) $39.26 per month for the first 2,000 gallons (4" valve) $59.36 per month for the fu^ 2,000 gallons (6" valve) $79.52 per month for the fu^t 2,000 gallons (7" valve) $1.70 per thousand or part thereof from 2,000 gallons to 20,000 gallons $1.55 per thousand or part thereof fi'om 20,000 gallons to 40,000 gallons $1.50 per thousand or part thereof fix)m 40,000 gallons to 80,000 gallons $1.40 per thousand or part thereof over 80,000 gallons

68

C«(TERNAL CONTROL, COMPLIANCE, AND OTHER INFORMATION

69

C. Bifton KoldflT. CPA* RuBsdl F. Ctwmpagne, CPA* Victor R.Staven. CPA* P. Troy Couwllle. CPA* GeiBid A. TTilbodeaux. Jr.,CPA* RobartS.Cvta-, CPA* ArtiurR. Ubeen, CPA*

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUrJTANTS

TynsiE. Mbcon.Jr. CPA Aden J. LaBry, CPA Abert R. L80«r. CPA.PFS,CSA* Pemy AngeO* Scruggins, CPA Christim L. Cousin. CPA MaryT.TNbO(teaux.CPA Monhri lW. Giidry, CPA Alan M.Taykr. CPA J imetR. Roy. CPA Rob«it J. Mstc. CPA KtDyH. DouCflt.CPA Chery) L. Barlay, CPA Hanctr B.Self. CPA PaJ L Dalciinbra, Jr. CPA Wvida F. Afcement CPA, CVA KrIt fnB. DaisA.CPA Richard R. Andarscn ST., CPA Carolyn C. Andareon, CPA

RetFBd: Conrad Q Chapmaa CPA* 2006 HarryJ.Oostlo.CPA 2007

OFFICES

183 South Baada Rd. Latiyatta. LA 70606 Phone (337) 232-4141 Fax (337) 232-8660

113EaBtBrfclgaSl Breaux Oldga. LA 7D517 Phone (337) 332-4(C0 Fax (337)332-2667

1234 David Dr. Sta 203 Morgan City. LA 70060 Phona (965) 364-2020 Fax (085) 364-3020

408 Waat Cotton Street Vme PlatlB, LA 7D568 Phone (337) 363-2792 Fax (337) 363-3049

332 West SixttAvwiue Oberim. LA 7DB5S Phone (337)639-4737 Fax (337)639-4568

450 Eait HainStiaet NewlbeiJe. LA7DS60

Phone (337) 367-9204 Fax (337) 367-0208

200 South Mdn St net AbbevOta. LA 70510

Phone (337) 803-7944 Fax (337) 693-7946

1013 Main Stnat FranMIn, LA 70536

Phona (337) 626-0272 Fn (337) 626-0200

133 EaatWaddilSL Uartovttia LA 71351

Phone (316) 253-9252 FB( (318) 253-6681

621 Main Street Plnevlla, LA 71360

Phona (316) 442-4421 FSM (318) 442-9833

* A n'oteatenal Accondng Coiponlon

WEBSFTE WWW.KCSRCPAS.COM

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLL^NCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS

The Honorable Arthur L. Verret, Mayor and Members of the Board of Aldermen


We have audited the fmancial statements of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Jeanerette, Louisiana, (hereinafter "City") as of and for the year ended June 30, 2009, which collectively comprise the City's basic fmancial statements and have issued our report thereon dated December 22,2009. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fmancial audits contained in Govemment Auditing Standards, issued by the Comptroller General of the United States.

Intemal Control Over Financial Reporting

In planning and performing our audit, we considered the City's internal control over tinancial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's intemal control over &iancial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's intemal control over financial reporting.

Our consideration of intemal control over financial reporting was for the limited pinpose described in the preceding paragraph and would not necessarily identify all deficiencies in intemal control over fmancial reportmg that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in intemal control over financial reporting that we consider to be significant deficiencies.

Member of: AMERICAN INSTlTirrE OF CERTIFIED PUBUC ACCOUNTANTS

70 Member of:

SOaETYOF LOUISIANA CERTIRED PUBLC ACCOUNTANTS

http://WWW.KCSRCPAS.COM

A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned fimctions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the City's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accoimting principles such that there is more than a remote likelihood that a misstatement of the City's financial statements that is more that inconsequential will not be prevented or detected by the City's intemal control. We consider the deficiencies identified as items 2009-1, 2009-2, and 2009-3 and described in the accompanying summary schedule of audit results and findings to be significant deficiencies in intemal control over financial reporting.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the City's intemal control.

Our consideration of the intemal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in the intemal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, of the significant deficiencies described above, we consider items 2009-1 and 2009-3 to be material weaknesses.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City*s financial statements are fiê 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 and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Govemment Auditing Standards, and which are described in the accompanying summary schedule of audit results and findings as hems 2009-4 and 2009-5.

The City's response to the findings identified in our audit is described in the accompanying corrective action plan for current year findings. We did not audit the City's responses and, accordingly, we express no opinion on it.

We noted certain matters that we reported to the management of the City in a separate letter dated December 22,2009.

This report is intended for the information and use of the management. Board of Aldermen, and federal awarding and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Although the intended use of this report may be limited under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document in accordance with Louisiana Revised Statute 44:6.

Kolder, Champagne, Slaven & Company, LLC Certified Public Accountants

Morgan City, Louisiana December 22, 2009

71


Summary Schedule of Prior Audit Findings Year Ended June 30, 2009

A. Intemal Control-

2008-01-Segregation of Duties

CONDITION: Accounting and financial functions are not adequately segregated.

RECOMMENDATION: Due to the size of the operation and the cost-benefit of additional personnel, it may not be feasible to achieve complete segregation of duties.

CURRENT STATUS: See schedule of audit results and findmgs item 2009-01.

2008-02-Application of GAAP

CONDITION: Management and staff lack the training and expertise in the selection and application of GAAP in the financial statement preparation process.

RECOMMENDATION: The additional costs required to achieve the desired benefit may not be economically feasible.

CURRENT STATUS: See schedule of audit results and fmdings item 2009-02.

B. Compliance-

2008-03-Budget Variance

CONDITION: Budget variance in excess of 5% was incurred.

RECOMMENDATION: Management should more closely monitor bidget to actual comparisons and adopt the necessary amendments to insure compliance with state statute.

CURRENT STATUS: See schedule of audit results and findings item 2009-03.

72


Summary Schedule of Audit Results and Findings For the Year Ended June 30,2009

Part I. Summary of Auditor^s Results:

An unqualified opinion was issued on the financial statements.

Significant deficiencies in internal control were disclosed by the audit of the financial statements and two of the conditions are considered material weaknesses.

The audit disclosed two instances of noncompliance which are material to the financial statements.

A management letter was issued.

Partll. Findings reported in accordance with Govemment Auditing Standards:

A. Intemal Control Findmgs-

2009-1 - Segregation of Duties

CONDITION: Accounting and financial functions are not adequately segregated.

CRITERIA: SAS 109, Understanding the Entity and its Environment and Assessing the lUsks of Material Misstatement, AU §314:43 defines intemal control as follows:

'Înternal control is a process - effected by those charged with govemance, management, and other personnel - designed to provide reasonable assurance about the achievement of objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, and compliance with Explicable laws and regulations.

Additionally, Statements on Standards for Attestation Engagements (SSAE) AT §501.03 states:

"An entity's intemal control over financial reporting includes those policies and procedures that pertain to an entity's ability to record, process, summarize, and report financial data consistent with the assertions embodied in either annual financial statements or mterim financial statements, or both."

CAUSE: The cause of the conditicms is the result of a failure to design and implement policies and procedures necessary to achieve adequate intemal control.

EFFECT: Failure to adequately segregate accounting and financial functions increases the risk that errors and/or irregularities, including fiûd and/or defalcations, may occur and not be prevented and/or detected.

RECOMMENDATION: Due to the size of the operaticHi and the cost-benefit of additional personnel, it may not be feasible to achieve complete segregation of duties.

73


Summary Schedule of Audit Results and Findings (continued) For the Year Ended June 30, 2009

2009-2 - Application of GAAP (generally accepted accounting principles)

CONDITION: Management and staff lack the training and expertise in tbe selection and application of GAAP in the financial statement preparation process.

CRITERIA: SASl 12, Communicating Intemal Control Related Matters Identified in an Audit, AU §325.18, states in pertment part:

"Deficiencies in the following areas ordinarily are at least significant deficiencies in intemal control:

• Controls over the selection and application of accounting principles that are in conformity with generally accepted accounting principles. Having sufiRcient e?q)eTtise in selecting and ^plying accounting principles is an aspect of such controls."

Furtheraiore, AU §325.32 identifies the following as a deficiency in the design of (intemal) controls:

"Employees or management who lack the qualifications and training to fiilfill their assigned functions. For example, in an entity that prepares financial statements in accordance with generally accepted accounting principles, the person responsible for the accounting and reporting function lacks the skills and knowledge to apply generally accepted accounting principles in recording the entity's financial transacticms or preparing its financial statements."

CAUSE: The cause of the conditions is the result of a failure to design and implement policies and pnxedures necessary to achieve adequate intemal control.

EFFECT: Failure to adequately segregate accounting and financial functions increases the risk that errors and/or uregularities, including fiûd and/or defalcations, may occur and not be prevented and/or detected.

RECOMMENDATION: The additicmal costs required to achieve the desired benefit may not be economically feasible.

74



2009-3 - Billing Adjustments

CONDITION: Billing adjustments are not performed in accordance with the City's policy as follows:

• 3 adjustments did not have adjustment forms completed • 2 adjustment forms were not approved • 2 adjustment forms were changed after approved

CRITERIA: City of Jeanerette's Billing Adjustments Policy states as follows:

"All accounts receivables credits issued, account adjustment, and similar transaction will be ^proved, in writing, on proper pre-numbered forms by the City Cleric or Accountant/Treasurer prior to said credit being issued against the consumer's account City Clerk will furnish a monthly report to the Mayor outlining requested information as indicated on the following suggested format. This report will include total amount of credit issued for each month."

Also, LA Constitution Article 7, Section 14, §14. Donation, Loan, or Pledge of Public Credit, Section 14.(A) states as follows:

Prohibited Uses. Except as otherwise provided by this constitution, the funds, credit, property, or things of value of the state or of any political subdivision shall not be loaned, pledged, or donated to or for any person, association, or corporation, public or private.

CAUSE: The cause of the conditions is the result of a failure to design and implement policies and procedures necessary to achieve adequate intemal control.

EFFECT: Failure to comply with the City's billing adjustment policy could result m inappropriate adjustments and loss of utility fund revenues.

RECOMlVlENDATION: We recommend that the City comply with its policy that utility adjustments are j)roperly reviewed and approved.

75



B, Compliance Finding -

2009-4 - Budget Variance

CONDITION: Budget variance in excess of 5% was incurred in the Drainage and Mosquito Fund.

CRITERIA: LSA-RS 39:1311 et seq. Budgetary Authority and Control, provides for the following:

"A. The adopted budget and any duly authorized adopted amendments shall form the framework from which the chief executive or administrative officers and members of the goveming authority of the political subdivision shall monitCH-revenues and control expenditures. The chief executive or administrative officer shall advise the governing authority or independently elected official in writing when:

l)Revenue collectiwi plus projected revenue collecticms for the remainder of the year, within a fund fail to meet estimated annual revenues by &ve percent or more.

2)Actual expenditures plus projected expenditures for the remainder of the year, within a fund are exceeding estimated budgeted expenditures by five percent or more.

3)Actual beginning fimd balance, within a fimd, fails to meet estimated beginning fimd balance by five percent or more and beginning fimd balance is being used to fimd current expenditures."

CAUSE: The conditicm results from a failure to properly monitor the revenues and e?q7enditiires of the special revenue fimds.

EFFECT: The City may not prevent and/or detect compliance violations due to over expenditure of the appropriated budget, and/or errors or irregularities on a timely basis. Also, the mayor may be subject to the penalty provisions of LSA-RS14:134.

RECOMMENDATION: We recommend that the administrative authority prepare and review budget to actual comparisons and amend the budget in effect upon determination of significant variances.

76

CFFY OF JEANERETTE, LOUISIANA


2009-5 - Public Bid Law

CONDITION: On 2 occasions, the City did not comply with the requirements of the public bid law for the purchase of vehicles. One occasion occurred wiien the City failed to properly advertise for bids of a police vehicle purchased. Also, the City failed to comply with public bid law for another police vehicle purchased that was said to be purchased under state contract; however, the amount paid for the vehicle exceeded the state contract price.

CRITERIA: LSA-RS 38:2212 et seq. Advertisement and letting to lowest responsible bidder, in part:

"A. (l)(a) All purchases of any materials or supplies exceeding the sum of thirty thousand dollars to be paid out of public fimds shall be advertised and let by contract to the lowest responsible bidder who has bid according to the specifications as advertised, and no such purchase shall be made except as provided in this Part"

"A. (2Xa) Any purchase by a local govemment unit of a used or new motor vehicle for conversion into a law enforcement vehicle, which purchase cost does not exceed the sum of twenty thousand dollars, shall not be subjected to the threshold delineated in Paragraph (1) of this Subsection. Written specifications, quotations, and confirmations of accepted offers for such purchase which sum is m excess of twenty thousand dollars shall be advertised and let for bid under the procedures outlined by the provisions of this Section.

"B. (1) The advertisement required by this Section for any contact for materials or supplies shall be published two tunes in a newspaper in the locality, the first advertisement to appear at least fifteen days before the openmg of bids. In addition to the newspaper advertisement, a public entity may also publish an advertisement by electronic media available to the general public."

"B. (2) The first publication of the advertisement shall not occur on a Saturday, Sunday, or legal holiday. Plans and specifications shall be available to bidders on the day of the first advertisement and shall be available until twenty-four hours before the bid opening date."

CAUSE: The conditicm results fit)m a failure to follow the requirements of the public bid law.

EFFECT: Failure to comply with the provision of the public bid law places the City m violation of state statute.

RECOMMENDATION: We recommend that the City comply with the tarns and conditicHis of the Public Bid Law.

Part ni. Findings and questioned costs for federal awards reported in accordance with Office of Management and Budget Circular A-133:

The requirements of OMB Circular A-133 are not q)plicable.

77


Corrective Action Plan For Current Year Findings For the Year Ended June 30,2009

Response to Finding 2009-1:

Due to the size of the operation and the cost-benefit of additional personnel, it is not feasible to achieve complete segregation of duties.


The City has evaluated the cost/benefit of establishing intemal controls over the preparation of financial statements in accordance with GAAP and has determined diat it is in the best interest of the City to outsource this task to its independent auditors and will review, approve, and accept responsibility for the content and presentaticm of the statements and related notes pnor to issuance.


The City treasurer is working closely with the billing clerk to ensure that adjustments are made according to the City of Jeanerette's billing adjustment policy. Our billing cleik has been instmcted to review all billing adjustments with our accountant.


The budget is amended twice annually as follows:

1. When individual budget line items are larger or less than 5% of die budget projected as provided by state statute.

2. Semi-aimual budget adjustments to bring budget in line with current revenues and expenditures.

The reason for budget variance in Drainage and Mosquito Fund was an oversight


Board action for purchase of police vehicle on October 13,2008:

Motion made to ^prove purchase of 2008 Crown Victoria fix)m Robin Motor Co. at the lowest quote of $22,612.50. Motion failed. Subsequent motion was made and seconded to purchase 2009 Dodge Charger from Lapeyrouse Motor Co. in the amount of $24,592.00. Motion carried.

In the above instance the board approved the purchase at the hig}iest quote; Dodge Charger for $24,592.00 from Lapeyrouse Motor Co. The vehicle was not purchased under state contract price.

For fiiture purchases recommendations will be made that the Board of Aldermen complies with the state public bid law.

78


Corrective Action Plan For Current Year Findings (continued) For the Year Ended June 30,2009

Board action for purchase of vehicle on March 9,2009:

MoticHi made, seconded and ^proved to purchase Dodge Charger in the amount of $21,938.00 instead of the state contract price of $20,703.00. Our accountant did not compare the invoice from the dealer to the state contract price and subsequently, the City paid the higher of the two.

For future purchases, including bids and quotes, our accountant has been instmcted to check the dealer's invoice against the state contract price to assure that the payment complies with the state bid law.

The public bid law has been reviewed. All purchases will be made in compliance with the state bid law.

79

C, Burton Kolder, CPA* Russdl F, Champagne, CPA' Victor R Slaven, CPA' P Troy Courville, CPA* Gerald A Thibodeaux, Jr.CPA" Robert S.Carter, CPA" ArihurR. Mixon, CPA*

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS

Tynes E, Mixon, Jr., CPA Allen J LaBry, CPA Albert R. Leger.CPA.PFS,CSA* Perry Angelle Scrugflns, CPA Christina L, Coiain, CPA MaryT.TNbodeaux, CPA MarshdIW. Guldry, CPA Alan M.Tsvlor, CPA James R Roy, CPA Robert J. Metz, CPA Kelly M Doucet, CPA Cheryl L Bartey, CPA Mandy B Self, CPA PaiJ L Delcamtre, Jr. CPA Wanda F. Arcement CPA, CVA KnstinB. Dauzat.CPA Richard R. Anderson Sr, CPA Carolyn C. Andersen, CPA

ReOred Conrad 0 Ch^man, CPA* 2CD6 Harry J Clostio,CPA 2007

OFFICES

183 South Beade Rd. Lafayette, LA 70508 Phone (337) 232-4141 Fax (337) 232-8660

113 EastBndgeSt Breaux aidga, LA 70517 Phone (337) 332-4020 Fax (337) 332-2867

1234 David Dr. Ste 203 Morgan Oty, LA 70380 Phone (985)384-2020 Fax (9ffi) 384-3020

408 WestCotton Street W e Platte, LA 70586 Phone (337) 363-2792 Fax (337) 363-3049

332 West Sixth Avenue Obei1in.LA70655 Phone (337) 639-4737 Fax (337) 63^568

450 East MaJn Street New Iberia. LA 70560

Phone (337) 367-9204 F « (337) 367-9208

200 Soiih Main Street Abbeville. LA 70510

Phona (337) 893-7944 FBK (337) 893-7946

1013 Man Street Franklin, LA 70538

Phone (337)828-0272 F a (337) 826-0290

133 East WaddilSL Marlfsvllla LA 71351

Phone (318) 253-9252 Fax (318) 253-8681

621 Main Street PIneviUe, LA 71360

Phone (318) 442-4421 Fax (318)442-9833

' A n-oteastonal >kxaintlng CoipomtiDn MANAGEMENT LETTER WEBSITE

WWW.KCSRCPAS COM

The Honorable Arthur L. Verret, Mayor, and Members of the Board of Aldemien


During our audit of the fmancial statements of the City of Jeanerette as of June 30, 2009 and for the year then ended, we noted certain areas in which the efficiency and effectiveness of the operations and/or compliance with certain laws and regulations could be improved. Our comments are not intended to reflect upon the ability or integrity of the City's personnel.

2009-ML-l Computation of overtime Overtime is not being computed in accordance with the City's: policy. computed based upon excess hours that exceed 8 hour per day.

Overtime is currently being

The City of Jeanerette's Personnel Policy Manual, Policy No. 12, effective 10/12/99, most recently revised 5/13/02 states as follows;

Subject: Hours of Work and Overtime Objective: To establish a City policy in regard to hours of work and overtime Scof)e: All hourly employees/ supervisors

Policy states:

"C. Overtime is one and one half times the employee's straight time hourly rate. This rate will be paid for all hours worked in excess of forty (40) hours in one week. Vacation time will be considered hours worked for calculating overtime."

We recommend that the City discuss and adopt a resolution stating how overtime should be calculated and begin relating all changes to payroll policies to payroll clerk so that software company can be contacted and program can be modified to calculate overtime based on policies.

Member of. AMERICAN INSTITUTE OF CERTIFIED PUBUC ACCOUNTANTS

Member of: SOCIETY OF LOUISIANA

CERTIFIED PUBUC ACCOUNTANTS

http://WWW.KCSRCPAS

The Honorable Arthur L. Verret, Mayor, City of Jeanerette Management Letter

2009-ML-2 Excessive amounts of overtime The City's overtime in certain departments is excessive. The City had 8 employees whose overtime hours were more than 500 hours, but less than 1,000 hours and 4 employees whose overtime hours exceeded 1,000 hours.

SAS 109, Understanding the Entity and its Environment and Assessing the Risks of Material Misstatement, AU §314.43 defines intemal control as follows:

"Intemal control is a process - effected by those charged with govemance, management, and other personnel- designed to provide reasonable assurance about the achievement of objectives with regard to reliability of fmancial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations.


An entity's intemal control over fmancial reporting includes those policies and procedures that pertain to an entity's ability to record, process, summarize, and report fmancial data consistent with the assertions embodied in either annual fmancial statements or interim financial statements, or both."

Also, LSA-RS 14:138, regarding public payroll fraud, states, in pertinent part:

A. Public payroll fraud is committed when:

(1) Any person shall knowingly receive any payment or compensation, or knowingly permit his name to be carried on any employment list or payroll for any payment or compensation from the state, for services not actually rendered by himself, or for services grossly inadequate for the payment or compensation received or to be received according to such employment list or payroll; or

(2) Any public officer or public employee shall carry, cause to be carried, or permit to be carried, directly or indirectly, upon the employment list or payroll of his office, the name of any person as employee, or shall pay any employee, with knowledge that such employee is receiving paym.ent or compensation for services not actually rendered by said employee or for services grossly inadequate for such payment or compensation.

We recommend that the City begin monitormg employee's overtime in areas ui which excesr.ive hours are being worked.


2009-ML-3 Purchasing policv noncompliance One disbursement for the Police Department did not comply with the City's purchasing policy (dispatcher approved the requisition). In addition, the items ordered, received and paid for were in excess of that authorized on the purchase order. Furthermore, in certain instances, purchase order were completed after the purchase of the items.


"Intemal control is a process - effected by those charged with govemance, management, and other personnel- designed to provide reasonable assurance about the achievement of objectives with regard to reliability of fmancial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations.


An entity's intemal control over fmancial reporting includes those policies and procedures that pertain to an entity's ability to record, process, summarize, and report financial data consistent with the assertions embodied in either annual financial statements or interim fmancial statements, or both."

We recommend that the City of Jeanerette enforce policies and procedures to have all purchase requisitions signed by authorized personnel and that purchase orders signed by authorized individuals prior to the purchase the items.

2009-ML-4 Inaccurate meter readings Meters are being read and reread inaccurately resulting in A/R and / or billing adjustments.


^'Internal control is a process - effected by those charged with govemance, management, and other personnel— designed to provide reasonable assurance about the achievement of objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations.


An entity's intemal control over financial reporting includes those policies and procedures that pertain to an entity's ability to record, process, summarize, and report financial data consistent with the assertions embodied in either annual financial statements or interim financial statements, or both."

We recommend that the City implement policies and procedures to ensure that meters are read and reread correctly and utility adjustments, if needed, are properly calculated on accurate readings.


2009-ML-5 Broken meters Of approximately 2220 water customers, 559 meters, or 25%, are reported as broken.


"Intemal control is a process - effected by those charged with govemance, management, and other personnel- designed to provide reasonable assurance about the achievement of objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations.



We recommend that the City of Jeanerette establish a systematic plan to repair and / or replace broken meters.

2009-ML-6 Working meters were in system as broken Thirteen (13) of 61 broken meters selected for testing were working. Providing service without the related billing results in incorrect revenue recognition and may be a violation of La Constitution Article 7 Section 14.

SAS 109, Understanding the Entity and its Environment and Assessing the Risks of Material Misstatement, AU §314.43 defines intemal control as follows;

"Intemal control is a process - effected by those charged with govemance, management, and other personnel- designed to provide reasonable assurance about the achievement of objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations.



LA Constitution; Article 7, Section 14, Donation, Loan, or Pledge of Public Credit, Section 14 (A) states as follows:

Prohibited Uses. Except as otherwise provided by this constitution, the funds, credit, property, or things of value of the state or of any political subdivision shall not be loaned, pledged, or donated to or for any person, association, or corporation, public or private.

We recommend that the City implement polices and procedures to ensure that all meters are read and that only improperly working meters be so identified.


We would like to express our appreciation to you and your staff for the courtesies and assistance rendered to us in the performance of our audit. Should you have any questions or need additional assistance, please feel free to contact us.

KOLDER, CHAMPA GNE, SLA VEN & COMPANY, LLC Certified Public Accountants

Morgan City, Louisiana December 22, 2009

ARTHUR L VERRET ^ • V m P. Q. BOX 209 Mayor W rS I V T W Jeanerette, LA 70544

^ ^ H J ^ Fax: (337) 276-5023 Office of the Mayor

CITY OF JEANERETTE "Where Pride and Progress Begins" ,*

December 29, 2009

Legislative Auditor Post Office Box 94397 Baton Rouge, Louisiana 70804-9397

Re: Response to City of Jeanerette Management Letter Report for Fiscal Year 07/01/2008-06/30/2009

Please find listed below the City of Jeanerette's response to the areas you have noted to improve the efficiency and efTectiveness of the operations and/or compliance with certain laws and regulations.

FINDINGS REPORTED IN MANAGEMENT LETTER

2009-ML-l Computation of overtime

Overtime is not being computed in accordance with the City's policy. Overtime is currently being computed based upon excess hours that exceed eight (8) hours per day.

The City Attomey, Ray Allain has been contacted. He is in the process of reviewing the City's overtime policy. He will write a resolution to be put before the Board of Alderman to be adopted. The computer software company will be contacted once the new policy is in place so the necessary software modifications can be made. The current policy has been reviewed with the payroll clerk and she is computing overtime according to City policy.

•

This imtitution is an equal opportunitj provider. To file a complaint of discrimination, write: USDA, Direcior Office of Civil RigKis, 1400 /ndffjentlfTicc Avenue, S. W.,

VfosKington, D.C. 2025a94J 0 or coil fSOO; 795-3272 (voice) or (202) 7206382 (TDD). USDA is an equal opportunity provider, employer, and lender.

ARTHUR L VERRET ^ ^ ^ ^ P. Q. BOX 209 Mayor W ^ i ^ T m Jeanerette, LA. 70544

^ ^ f i J ^ Fax: (337) 276-5023 Office of the Mayor

CITY OF JEANERETTE "Where Pride and Progress Begins"

2009-ML-2-Excessive amounts of overtime

The City's overtime in certain departments is excessive. The City had eight (8) employees whose overtime hours were more than five hundred (500) hours, but less than one thousand (1,000) hours and four (4) employees whose overtime hours exceeded one thousand (1,000) hours.

A meeting was held with all department heads on December 30, 2009 to discuss this issue and it will be closely monitored by all department heads in the future.

2Q09-ML-3 Purchasing policy noncompliance

One disbursement for the Police Department did not comply with the City's purchasing policy (dispatcher approved the requisition). In addition, the items order, received and paid for were in excess of that authorized on the purchase order. Furthennore, in certain instances, purchase orders were completed after the purchase of the items.

A meeting was held with all department heads on December 30, 2009 to discuss this issue and all requisitions will be signed by authorized personnel and purchase orders will be completed prior to purchase.

2QQ9-ML-4 Inaccurate meter readings

Meters are being read and reread inaccurately resulting in A/R and/or billing adjustments.

The City of Jeanerette no longer gives the meter reader the prior meter reading upon all meter rereads to avoid inaccurate results.

2009-ML-5 Broken meters

Of approximately 2220 water customers, 559 meters, or twenty five percent (25%), are reported as broken.

This imtitution is an equal opportunity provider. To file a complaint of discrimination, write: USDA, Director 0//ice of Civil Rights, 1400 Independence Aiênue, S. W.,

Washington, D.C. 20250-9410 or coil (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opponumiy provider, employer, and lender.

ARTHUR L VERRET ^ ^ I T ^ P. o. Box 209 Mayor H ? ^ ^ 7 ^ k ^ V Jeanerette, LA 70544

^ ^ B P ^ Fax: (337) 276-5023 Office of the Mayor

CITY OF JEANERETTE "Where Pride and Progress Begiris"

The City of Jeanerette has applied for funds from the U.S.D.A. to replace broken meters throughout the City.

2009-ML-6 Working meters were in system as broken

Thirteen (13) of 61 broken meters selected for testing were working. Providing service without related billing results in incorrect revenue recognition and may be a violation of La Constitution Article 7 Section 14.

The City will begin an extensive campaign to confirm all broken meters are in fact broken. Any meters that are not broken will be brought on line and begin receiving correct monthly bills.

I have answered these questions to the best of my ability but should there be any addition informafion required, please advise and I will give my full cooperation.

Very truly yours,

Arthur L. Verret, Mayor

AV/rd

CC: Board of Alderman

Gerald A. Thibodeaux, Jr., Auditor

This institution is an equal opportunity provider. To file a complaint of tiiscrimination, unite: USDA, Director Of/ice of Civil Rights, 1400 Independence Avenue, S. W.,

Washington, D.C. 2025a94I0 or coil C800; 795-3272 rwice^ or f202) 720-6382 (TDD). USDA is an equal opponumiy provider, employer, and lender.

Date post:	16-Mar-2021
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

lIGISuflVE^ 2010 JAN-6 MHO-21 · 2021. 1. 31. · ^m lIGISuflVE^ 2010 JAN-6 MHO-21 CITY OF...

Documents