Town of Wisnerapp1.lla.state.la.us/PublicReports.nsf/F8880E220B25EDFC... · 2020. 10. 19. · TOWN...

TOWN OF WISNERWisner, Louisiana

Report On AuditOf

Basic Financial StatementsFor The Year Ended

June 30, 2005

Under provisions of state law, this report is a publicdocument. Acopy of the report has been submitted tothe entity and other appropriate public officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.

Release Date 2-- /-o4>

Jimmie Self, CPAA Professional Accounting Corporation

2908 Cameron Street, Suite CMonroe, Louisiana 71201

Phone 318/323-4656 • FAX 318/388-0724

TOWN OF WISNERWisner, Louisiana

Report On The AuditOf The

Basic Financial StatementsFor The Year Ended

June 30, 2005



Phone 318/323-4656 • FAX 318/388-0724

TOWN OF WISNER, LOUISIANATable of Contents

As of and for the year ended June 30, 2005

Exhibit Schedule Page

Independent Auditor's Report 1 -2

Required Supplementary Information (Part I)Management Discussion and Analysis 4-10

Basic Financial StatementsGovernment-Wide Statements:

Statement of Net Assets A 12Statement of Activities B 13

Fund Financial StatementsGovernmental Funds:Balance Sheet - Governmental Funds C 15Reconciliation of the Balance Sheet to the

Statement of Net Assets - GovernmentalFunds C-l 16

Statement of Revenues, Expenditures, andChanges in Fund Balances - GovernmentalFunds D 17

Reconciliation of the Statement of RevenuesExpenditures, and Changes in Fund Balancesof Governmental Funds to the Statement ofActivities D-l 18

Statement of Net Assets - Proprietary Funds E 19Statement of Revenues, Expenses, andChanges in Fund Net Assets - ProprietaryFunds F 20

Statement of Cash Flows - Proprietary Funds G 21

Notes to Financial StatementsNotes 23-39

Required Supplementary Information (Part II)Statement of Revenues, Expenditures, andChanges in Fund Balances Budget (GAAP Basis) toActual - General Fund 41

WISN05Contents

TOWN OF WISNER, LOUISIANATable of Contents

As of and for the year ended June 30, 2005

Schedule Page

Schedule of Compensation Paid Elected Officials 2 42

Other Independent Auditor's Reports and Findingsand RecommendationsReport on Compliance and on Internal Control over

Financial Reporting Based on an Audit of FinancialStatements Performed in Accordance withGovernment Auditing Standards 44,45

Schedule of Findings and Questioned Costs 46Findings, Current and Prior Year 47,48Management Recommendations 49

WISNOSContents



Phone 318-323-4656 Fax 318-388-0724

Independent Auditor's Report

To the Honorable Mayor andThe City CouncilTownofWisnerWisner, Louisiana

I have audited the accompanying basic financial statements of the governmentalactivities, the business-type activities, and each major fund, as of and for the year endedJune 30,2005, which collectively comprise the Town's basic financial statements aslisted in the table of contents. These financial statements are the responsibility of Townof Wisner, Louisiana's, management. My responsibility is to express opinions on thesefinancial statements based on my audit.

I conducted my audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable in Government AuditingStandards, issued by the comptroller general of the United States. Those standardsrequire that I plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financial statements.An audit also includes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statement presentation.I believe that my audit provides a reasonable basis for my opinions.

In my opinion, the financial statements referred to above present fairly, in all materialrespects, the respective financial position of the governmental activities, the business-type activities, and each major fund of the Town of Wisner, as of June 30, 2005, and therespective changes in financial position and cash flows, where applicable, thereof for theyear then ended in conformity with accounting principles generally accepted in theUnited States of America.

The Town of Wisner had in the prior year ended June 30, 2004, implemented the newfinancial reporting model as required by the provisions of GASB Statement No. 34, BasicFinancial Statements and the Management Discussion and Analysis for State and LocalGovernments.

The Management Discussion and Analysis and budgetary comparison information are nota required part of the basic financial statements, but are supplementary informationrequired by accounting principles generally accepted in the United States of America. Ihave applied certain limited procedures, which consisted principally of inquiries of

WISNOSlndAudRep

management regarding the methods of measurement and presentation of the requiredsupplementary information. However, I did not audit the information and express noopinion on it.

In accordance with Government Auditing Standards, I have also issued my report datedDecember 27, 2005, on my consideration of the Town of Wisner's internal control overfinancial reporting and my tests of its compliance with certain provisions of laws,regulations, contracts, and grants. That report is an integral part of an audit performed inaccordance with Governmental Auditing Standards and should be read in conjunctionwith this report in considering the results of my audit.

My audit was conducted for the purpose of forming opinions on the basic financialstatements taken as a whole. The accompanying supplemental information listed in thetable of contents under Supplemental Information is presented for the purpose ofadditional analysis and is not a required part of the basic financial statements. Suchinformation has not been subjected to the auditing procedures applied in the audit of thebasic financial statements, therefore, I express no opinion on them.

sr - -/̂ » -̂** -̂_*~ /CsJimmie Self, CPAMonroe, LouisianaDecember 27, 2005

WISNOSlndAudRep

Required Supplementary Information(Parti)

Management Discussion and Analysis

TOWN OF WISNERWISNER, LOUSIANA

Management Discussion and AnalysisJune 30, 2005

As management of the Town of Wisner, Louisiana (the "Town"), we offer readers ofthese financial statements this narrative overview and analysis of the financial activitiesof the Town for the fiscal year ended June 30, 2005. The Management Discussion andAnalysis ("MD&A") is designed to provide an objective and easy to read analysis of theTown's financial activities based on currently known facts, decisions, and conditions. Itis intended to provide readers with a broad overview of Town finances. It is alsointended to provide readers with an analysis of short-term and long-term activities of theTown based on information presented in the financial report and fiscal policies that havebeen adopted by the Town. Specifically, this section is designed to assist the reader infocusing on significant financial issues, provide an overview of the Town's financialactivity, identify changes in the Town's financial position (its ability to address the nextand subsequent year challenges), identify any material deviations from the financial plan(the approved budget), and identify fund issues or concerns.

This will be the second year the Town has presented its financial statements under thereporting model required by the Governmental Accounting Standards Board StatementNumber 34. This reporting model has significantly changed the presentation of financialdata and also the manner in which the data is recorded. Prior year comparativeinformation along with current year financial information has been included in theMD&A in accordance with the requirements of GASB Statement No. 34 presentation.

As with other sections of the financial report, the information contained within theMD&A should be considered only as part of the greater whole. The readers of thisstatement should take time to read and evaluate all sections of this report, including thefootnotes and the other Required Supplementary Information that is provided in additionto this Management Discussion and Analysis.

Overview of Financial StatementsThis discussion and analysis is intended to serve as an introduction to the Town'sfinancial statements. The Town's basic financial statements consist of the followingcomponents:

1. Government-Wide Financial Statements2. Fund Financial Statements3. Notes to the Financial Statements4. Other Supplementary Information, which is in addition to the basic financial

statements themselves.

1. Government-Wide Financial Statements

Government-Wide Financial Statements are designed by GASB Statement No. 34 tochange the way in which government financial statements are presented. It now providesreaders for the first time a concise "entity-wide" Statement of Net Assets and Statementof Activities, seeking to give the user of the financial statements a broad overview of theTown's financial position and results of operations in a manner similar to a private-sectorbusiness.

WISN05MD&A



A. The Statement of Net Assets presents information on all the town's assets andliabilities using the accrual basis of accounting, which is similar to the accounting usedby most private-sector companies. The difference between the assets and liabilities isreported as net assets. Over time, increases or decreases in net assets may serve as auseful indicator of whether the financial position of the Town is improving or weakening.

B. The Statement of Activities presents information showing how government's netassets changed during the most recent fiscal year. All changes in net assets are reportedas soon as the underlying event giving rise to the change occurs, regardless of the timingof related cash flows. Thus, revenues and expenses are reported in this statement forsome items that will only result in cash flow in future fiscal periods (e.g., uncollectedtaxes).

The government-wide financial statements further assist the reader in their evaluation bydistinguishing functions of the Town into:

A. Governmental activities that are principally supported by taxes andintergovernmental revenues, and

B. Business-type activities that are intended to recover all or a significant portion oftheir costs through user fees and charges.

Government-Wide Financial Analysis

As noted earlier, net assets may serve over time as a useful indicator of a government'sfinancial position. The Town's assets exceeded its liabilities at the close of the priorfiscal year by $873,000. Of that total amount, ($649,043) are unrestricted net assets. TheTown's net assets are comprised of $780,643 from Governmental Activities and$1,200,845 from Business-Type Activities.

The Town's assets during the current fiscal year ending June 30, 2005 exceeded liabilitiesby $709,898. Of that total amount, $27,387 are unrestricted net assets. The town's netassets are comprised of $709,897 from Governmental Activities and $1,120,179 fromBusiness-Type Activities.

By far, the largest portion of the Town's net assets (81 percent) reflects its investment incapital assets (e.g., land, buildings, machinery & equipment, vehicles, etc.), less anyrelated debt used to acquire those assets that is still outstanding. The Town uses thesecapital assets to provide services to citizens; consequently, these assets are not availablefor future spending. Although the Town's investment in its capital assets is reported netof related debt, it should be noted that the resources needed to repay this debt must beprovided from other sources, since capital assets themselves cannot be used to liquidatethese liabilities.

WISN05MD&A



The remaining balance (19 percent) in unrestricted assets may be used to meet thegovernment's ongoing obligations to citizens and creditors.

At the end of the prior fiscal year ended June 30, 2004, the Town was able to reportpositive balances in both categories of net assets, both for the government as a whole aswell as for its separate governmental and business-type activities. At the end of thecurrent fiscal year ended June 30, 2005, the Town is able to report positive balances inboth categories of net assets, both for the government as a whole, as well as for itsseparate governmental and business-type activities.

Governmental Activities

The Governmental Activities of the city include General Government, Public Safety,Public Works, Community Development, and Miscellaneous Programs. Sales taxes,property taxes, as well as licenses, permits, and fines fund most of these governmentalactivities.

Here we show the Town's expenditures related to those functions typically associatedwith governments. In the chart below, General government includes the followingdepartments: Legislative (Town Council), Executive, Financial, Building, and otherGeneral Administration. Public Safety encompasses the police and fire protectiondepartments. Public Works is made up of street departments, and like services.

Governmental ActivitiesExpenditures

General GovernmentPublic SafetyPublic WorksPaid on Long-Term Debt

Total Governmental Activities

June 30,2004

$238,897 66.46%66,802 18.57%

2,795 0.77 %51,089 14.20%

$359,583 100.00%

June 30,2005

$ 136,454 46.47%102,822 35.02%50,759 17.29%

3,579 1.22%

$293,614 100.00%

General revenues are those available for the city to use to pay for the governmentalactivities as described above. Program revenues are derived from other sources and arealso utilized in the operation of the governmental functions.

GENERAL REVENUES

Taxes:Property TaxesSales and Use TaxesOther Taxes

Franchise Fees

June 30, 2004

$ 30,635 8.90%88,894 25.79%

450 0.12%20,684 6.14%

June 30, 2005

$ 18,333 8.09%81,593 36.02%

0 00.00%22,130 9.76%

W1SN05MD&A



Investment Earnings

MiscellaneousTransfers InTransfers Out

Total General Revenues

PROGRAM REVENUES

Fines, Fees, Etc.Operating Grants, Contributions

Total Program Revenues

Total Revenues

9,546

37,456

$ 187,665

80,71575,473

$ 156,188

$ 343,853

2.75 %

10.80%

54.50 %

23.52 %21.98%

45.50%

100.00%

2,683

5,4475,941

(22,690)

$ 113,437

84,74328,347

$ 113,090

$ 226,527

1.18%

2.40 %2.63 %

(10.01 %)

50.07 %

37.41 %12.52%

49.93 %

100.00%

For the prior year ended June 30, 2004, sales taxes are the largest revenue source for theTown comprising 25.79 % of total governmental revenue. Sales tax revenues for the yearwere $88,894.

For the current year ending June 30, 2005, fines and fees, etc. are the largest revenuesource for the Town comprising 37.41% of the total government revenue. Fines and feesrevenues for the year were $84,743.

Business-Type Activities

The Business-Type Activities of the Town are those fees to customers that help cover allor most of the cost of the services it provides. The Town water and sewer departmentsare reported here.

BUSINESS TYPE ACTIVITIES June 30,(Water and Sewer Fund) 2004

Revenues $ 286,095

Expenses $ 274,700

June 30,2005

$ 243,563

$ 346,430

2. Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resourcesthat have been segregated for specific activities or objectives. The Town, like any otherstate or local governments, uses fund accounting to ensure and demonstrate compliance

WISN05MD&A

TOWN OF WISNERWISNER, LOUISIANA


with finance-related legal requirements. All of the funds of the Town can be divided intotwo categories: Governmental Funds and Proprietary Funds.

A. Governmental Funds are used to account for most of the Town's basic services asreported as governmental activities in the government-wide financial statements.However, unlike the government-wide financial statements, governmental fund financialstatements focus on how money flows into and out of those ftmds and the balances left atyear-end that are available for spending. Those ftinds are reported using modified accrualaccounting that measures cash and all other financial assets that can readily be convertedto cash. The governmental fund statements provide a detailed short-term view of theTown's general governmental operations and basic services it provides. Governmentalfund information helps you determine whether there are more or fewer financialresources that can be spent in the near future to finance the Town's programs.

Because the focus of governmental ftinds is narrower than that of the government-widefinancial statements, it is useful to compare the information presented for governmentftinds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-termimpact of the government's near-term financing decisions. Both the governmental fundBalance Sheet and the governmental fund Statement of Revenues, Expenditures, andChanges in Fund Balances provide a reconciliation to facilitate this comparison betweengovernmental funds and governmental activities. These reconciliations are located onpages 16 and 18.

The Town maintains two individual governmental funds. Information is presentedseparately in the governmental fund Balance Sheet and in the governmental fundStatement of Revenues, Expenditures, and Changes in Fund Balances for the GeneralFund. The basic governmental fund financial statements can be found on pages 15 and17 of this report

Financial Analysis of Government Funds

As of the end of the prior fiscal year ended June 30, 2004, the Town's governmentalfunds reported combined ending fund balances of $147,169. In the General Fund, theunreserved fund balance is $136,357At the close of the current fiscal year ending June30, 2005, the Town's governmental funds reported combined fund balances of $103,777.In the general fund, the unreserved fund balance is $103,777

CHANGES IN FUND BALANCESFund Balance Date General Fund Water and Sewer Fund

June 30, 2004 $ (113,322) $ (34,259)

June 30,2005 $ 103,777 $(80,666)

WISN05MD&A



B. Proprietary Funds - (Enterprise Funds) are used to report the same functionspresented as business-type activities in the government-wide financial statements. Thetown uses Enterprise Funds to account for its Water and Sewer Department. Proprietaryfunds provide the same type of information as the government-wide financial statements,only in more detail. The proprietary fund financial statements provide separateinformation for the Water and Sewer Department, which is considered to be major fundsof the Town. The basic proprietary fund financial statements can be found on pages"Basic Financial Statements" section of this report.

3. Notes to the Financial Statements

The Notes to the Financial Statements provide additional information that is essential fora full understanding of the data provided in the government-wide and financialstatements. The Notes to the financial statements can be found immediately followingthe section entitled "Basic Financial Statements."

4. Other Supplementary Information

In addition to the basic financial statements and accompanying notes, this report alsopresents certain required supplementary information. Required supplementaryinformation can be found beginning with a section entitled "Required SupplementaryInformation - Part I."

A. Budgetary Comparison Schedule - The Town adopts an annual appropriated budgetfor its general fund. A budgetary comparison schedule (Schedule 1 in the RequiredSupplementary Information Part II section) has been provided for these funds todemonstrate compliance with the adopted budget and state laws.

B. Analysis of Significant Budget Variances in the General Fund.i. Revenues - $37,672 unfavorableii. Expenditures - $8258 unfavorable

5. Combining Statements for the non-major Governmental Funds - N/A

6. Other Supplementary Schedules are included in this report.

Capital Assets and Debt Administration

1. Capital AssetsThe Town's investment in capital assets, net of accumulated depreciation, for the prioryear ended June 30, 2004 in its governmental activities is $730,730 and in business-typeactivities is $1,731,808 which totals $2,462,539 for the Town. This investment in

WISN05MD&A 9



governmental activities assets includes land, buildings and systems, machinery andequipment, parks and landscaping. The investment in assets for business-type activitiesincludes the water and sewer system and treatment plants. Additions to governmentalactivities assets within the year include landscaping while increases to business-typeactivities assets include new equipment purchases and creation of the walking trail.

The Town's investment in capital assets, net of accumulated depreciation, for the currentyear ending June 30, 2005 in its governmental activities is $842,098 and in business-typeactivities is $2,095,209 which totals $2,937,307 for the Town. This investment ingovernmental activities assets includes land, buildings and systems, machinery andequipment, parks and landscaping. The investment in assets for business-type activitiesincludes the water and sewer system and treatment plants.

2. Long-Term Debt

At the end of the prior fiscal year ended June 30, 2004, the Town had a revenue bondindebtedness of $925,114 in addition to a certificate of indebtedness of $79,538 andindebtedness to the Louisiana Public Facilities Authority for $28,000. This represented atotal indebtedness for the Town in the amount of $1,032,652.

At the end of the current fiscal year ended June 30, 2005 the Town had a revenue bondindebtedness of $909,918 in addition to a certificate of indebtedness of $67,699 andindebtedness to the Louisiana Public Facilities Authority for $24,000. This represents atotal indebtedness for the Town in the amount of $1,001,617.

Contacting the Town of Wisner

This financial report is designed to provide a general overview of the Town's finances forall those with an interest in the government's finances. Questions concerning any of theinformation provided in this report or requests for additional financial information shouldbe addressed to Connie Scott, Town Clerk, P. O. Drawer 290, Wisner, LA 71378.

WISN05MD&A 10

Basic Financial Statements

TOWN OF WISNER, LOUISIANASTATEMENT OF NET ASSETS

June 30, 2005

Exhibit A

Assets:Cash and Cash Equivalents

InvestmentsReceivables, Net

Restricted Assets:Cash & Cash Equivqlents

Downtown RevitalizationUtility Bond FundCash Savings Account

Water Revenue Deposit FundWater Meter Fund

Water Meter Deposit FundOther

Capital Assets:LandBuildings

InfrastructureEquipmentVehicles

LandscapingAccumulated Depreciation

Total Assets:

GOVERNMENTAL BUSINESS-TYPE TOTAL-(MEMORANDUM

ACTIVITIES ACTIVITIES ONLY)

58,174

133,534

27,126

900220,747

82,881

44,3554,9371,9073,374

70,200

724,358

2,727,846

373,213

191,415

79,270

(1.806,930)

2,937.307

Liabilities:

Accounts and Other PayablesPayable from Restricted Assets:Customer DepositsAccrued Liabilities

Paid from restricted assets:

Current portion of long-term obligationsNon Current Portion of long-term obligationsTotal Liabilities:

Net Assets:Invested in Capital Assets

UnrestrictedTotal Net Assets

$ 36,875

117,736

4,977

;------

57,000

724,358-

223,585

191,415

79,270

(593,118)

$ 842,098

$ 39,675

-826

15,310

76,389

132,200

682,510

27,387

$ 709,897

$ 21,299

15,798

22,149

900220,747

82,881

44,355

4,937

1,9073,374

13,200

-2,727,846

149,628

--

(1,213,812)

S 2,095,209

$ 4,536

37,053

29,833

15,194

894,725

981,341

1,440,495

(326,628)

$ 1,113,867

44,211

37,053

30,659

30,504971,114

1,113,541

2,123,005(299,241)

1,823,764

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS REPORT

WISN05StmtNetAssets 12

TOWN OF WISNER. LOUISIANAStatement of ActivitiesFor the Year Ended June 30, 2005

Exhibit B

Functions/Programs Expenses

Governmental ActivitiesGeneral Government S 136.454Public Safety 102,822Public Works 50.759Interest on long-term debt 3.579

Totai GovernmentalActivities S 293.614

Business Type ActivitiesWater 291,603interest on Long-term Debt 54,827

Totai Business TypeActivities S 345,430

Totai Government S 840,044

Program RevenuesFines.£ees& Operating

Charges for Grants &Services Contributions

S 84.743 S 22.2686,0?9

-

S 84.743 S 28,347

243,563

S 243,563 S

S 328,306 S 28.347

General RevenuesTaxes:

Property taxesSates & Use TaxesFranchise Fees

FinesInvestment EarningsMiscellaneous

Transfers inTransfers Out

Total General Revenues

Change tn Net AssetsNet Assets. Beginning of YearNet Assets,£nd of Yeai

Net {Expenses)Revenues and

Changes inNet Assets

BusinessGovernmental Type

Activities Activities

S (29,443) S(96.743)(50759!(3,579)

S ^80.524) S

(48. MO)(54 827)

S (102.867)

J[__£]80,524) S (102,867)

S 18,333 S81,59322.130

-

2.6S3 5.4525,4475.941 22,690

(22,690) {5.941}

113.437 22,201

(67,08?) (80.666)776,984 1.194.534

S 709. 397 S 1.113858

Totai

S (29.443)(96.743)(50,759)

(3.579)

(180,524)

{48,040)

S (102,867)

S £283,39 1)

S 18.333SI, 59322.130

.

3,1355,447

28.63!(28,631)

135638

(147753)1.971.518

5 1.823.765

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THiS REPORT

Fund Financial Statements

TOWN OF WISNER, LOUISIANABALANCE SHEETGovernmental Funds

June 30, 2005

Exhibit C

Assets:

CashInvestmentsReceivables-(net, where applicable, ofallowance for doubtful accounts)Total Assets:

Liabilities and Fund BalanceLiabilities:

Accounts PayablesTotal Liabilities

Fund Balances:Reserve for long-term debtUnreserved-undesignatedTotal Equity & Other Credits:

TOTAL LIABILITY, EQUITY AND OTHER CREDITS

General

4,977

TotalDebt Governmental

Service Funds

36,875 $ - $ 36,875

101,600 16,136 117,736

4,977$ 143,452 $ 16,136 $ 159,588

S

$

39,675 !

39,675

103,777

103,777

143,452 1

£ 16,136

16,136

-S 16,136

$ 55,811

55,811

103,777

103,777

$ 159,588


WISNOSBalShlGovFnds 15

TOWN OF WISNER Exhibit C-1Reconciliation of the Balance Sheet

to the Statement of Net AssetsGovernmental Funds

For the Year ended June 30, 2005

Fund Balances - Total Governmental Funds $ 103,777

Amounts reported for governmental activities in the statement ofnet assets are different because:

Capital assets used in governmental activities are not financialresources, therefore are not reported in the governmentalfunds:

Governmental Capital Assets 1,275,628.00Less: Accumulated Depreciation (593.118.00)

(682,510)

Increase in Accounts Payable/receivable (39,465)

Long-term Liabilities are not due and payablein the current period and therefore not reported (91,699)in the governmental funds

Net Assets of Governmental Activities $ 709,897


WISNOSReconBalShtToStmtNetAsslGovFnds 16

TOWN OF WISNERStatement of Revenues, Expenditures,

and Changes in Fund BalancesGovernmental Funds

For the Year Ended June 30,2005

Exhibit D

Revenues:Property TaxesSales TaxesInsurance RebateLicense & Permits

Franchise FeeFinesMiscellaneousTransfer from water worksInterest IncomeGrantsTransfer to Water Works

Total Revenues

Expenditures:General GovernmentPublic SafetyPublic WorksInterest

Total Expenditures

Excess (Deficiency) ofRevenues over expenditures

Fund Balance - Beginning of Year

Fund Balance - End of Year

TotalGovernmental

General FundsFund (Memorandum only)

$ 18,333 $81,593

3,80233,40322,13047,538

5,4475,9412,684

28,346(22,690)

$ 226,527 $

18,33381,593

3,80233,40322,13047,538

5,4475,9412,684

28,346(22,690)226,527

94,45791,35749,679

3,579

$ 239,072 $

(12,545)

116,322

94,45791,35749,679

3,579

239,072

(12,545)

116,322

$ 103,777 $ 103,777

THE ACCOMPANYING NOTES ARE INTEGRAL PART OF THIS REPORT

WISNOSStmtRevExpChngFndBalGovFnds 17

TOWN OF WISHER Exhibit D-1Reconciliation of the Statement of Revenues,

Expenditures, and Changes in Fund Balances ofGovernmental Funds to the Statement of Activities

For the Year Ended June 30, 2005

Net Change in Fund Balances - Total Governmental Funds $ (12,545)

Amounts reported for governmental activities in the statement of activitiesare different because:

Depreciation on capital assets is reported in the government-wide financialstatements, but they do not require the use of current financial resourcesand are not reported in the fund financial statements. Current yeardepreciation expenses are (54,542)

Change in Net Assets of Governmental Activities $ (67.087)

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT

WISNOSReconStmtRevExpChngFndBalGovFndsToStmtActiv 18

TOWN OF WISNER.LOUISIANAStatement of Net AssetsProprietary FundsJune 30, 2005

AssetsCurrent Assets:

Cash and Cash EquivalentsAccounts Reveivable, NetInvestments

Total Current Assets

Non-Current Assets:Restricted Assets:Cash and Cash Equivalents:

Downtown RevitalizationUtility Bond FundCash Savings AccountWater Revenue Deposit FundWater Meter FundWater Meter Deposit FundOther

Total Restricted Assets

Capital Assets:Property, Plant, and Equipment, at cost

Less Accumulated DepreciationLand

Total Capital AssetsTotal Non-Current Assets

Total Assets

Liabilities and Net AssetsCurrent Liabilities (Payable from Current Assets):Accounts Payable

Total Current Liabilities (Payable from Current AssetsCurrent Liabilities (Payable from Restricted Assets):

Customer DepositsAccrued Bond InterestBonds Payable

Total Current Liabilities (Payable from Restricted Assets)

Exhibit E

Business-Type ActivitiesEnterprise Funds

21,30022,14915,79859,247

900220,74682,88144,3554,9371,9073,374

359,100

2,877,474(1,213,813)

13,2001,676,8612,035,961

$ 2,095,208

4,5364,536

37,05329,83315,19482,080

Long-Term Liabilities:Bonds Payable

Total Long-Term LiabilitiesTotal Liabilities

Net AssetsInvested in Capital Assets, Net of Related DebtUnrestricted

Total Net Assets

Total Liabilities and Net Assets

894,725894,725981,341

1,440,496(326,628)

1,113,868

$ 2,095,209


WISNOSStmtNetAsstsPropFnds 19

TOWN OF WISNER, LOUISIANAStatement of Revenues, Expenses,

and Changes in Fund Net AssetsProprietary Funds


Exhibit F

Operating Revenues:Charges for ServicesConnection FeesTransferred in

Total Operating Revenues


$ 241,3662,197

22,690$ 266,253

Operating Expenses:Bank ChargesSalariesPayroll Taxes/Employee BenefitsTruck ExpenseMaintenance and RepairsSalt Chemicals & SuppliesOffice Supplies and PostageMisc Office ExpenseInsurance ExpenseEPA Sewer Testing ExpenseUtilitiesAudit FeeLegal and ProfessionalMisc ExpenseBad Debt ExpenseDues & SubscriptionsNSFCTransfer to general fundUniformsDepreciationGarbageSales Tax on Water

Total Operating ExpenseNet Operating Income(Loss)

Non-Operating Revenues(Expenses)Interest IncomeInterest ExpenseTotal Non-Operating Revenues (Expenses)

Change in Net Assets

Net Assets-Beginning of Year

Net Assets-End of Year

5772,2565,5277,5634,853

29,4278,221

36223,3093,400

34,7782,7276,450

75417639

(375)5,941(180)

83,1604,2604,838

297,544(31,291)

5,452(54,827)(49,376)(80,666)

1,194,534

1,113,868


Wl SNOSStmtRevExpChngFndNelAsstsPropFnd 20

TOWN OF WISNER Exhibit GStatement of Cash FlowsProprietary FundsFor the Year Ended June 30,2005


Water Fund

Cash Flows from Operating Activities:Receipts from Customers $ 249,015Payments to Suppliers (172,209)Payments to Employees (72,256)Cash Rec'd from other funds for services - 22,690Cash Payments to Other funds for services (5,941)

Net Cash Provided by Operating Activities 21,299

Cash Flows from Capital and Related Financing Activities:

Cash paid on interest on bonds from current assets (3,493)Cash paid for capital investment (27,745)

Net Cash Provided (Used) by Capitaland Related Financing Activities (31,238)

Net Increase (Decrease) in Cash and Cash Equivalents (9,939)

Cash - Beginning of Year 31,238

Cash - End of Year $ 21,299

Reconciliation of Operating Income (Loss) to Net CashProvided (Used) by Operating Activities:Operating Income, (Loss) $ (80,666)

Adjustments to Reconcile Operating Income(Loss) toNet Cash Provided by Operating Activities

Depreciation 83,160Increase (Decrease) in Accounts Receivable (4,270)Increase (Decrease) in Allowance for Bad Debts 480Increase (Decrease in Accounts Payable 411lncrease(Decrease in Accrued Interest (506)Cash received from general fund for bond payment 22.690

Net Cash Provided by Operations $ 21,299


WISNOSStmtCshFlowsPropFnds 21

Notes to Financial Statements

TOWNOFWISNERWISNER, LOUISIANA

Notes to the Financial StatementsJune 30, 2005

NOTE I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

LA. INTRODUCTION

The accounting and reporting framework and the more significant accountingprinciples and practices of the Town of Wisner are discussed in subsequent sections ofthis Note. The remainder of the Notes is organized to provide explanations, includingrequired disclosures of the Town's financial activities for the fiscal year ended June 30,2005.

I.B. FINANCIAL REPORTING ENTITY

The Town of Wisner, Louisiana, was incorporated in 1932, and is currently under theprovisions of The Home Rule Charter as provided by State Law Reference L.R.S.33:1381 - 1390. A copy of the ratified charter is recorded at the Franklin ParishCourthouse, Winnsboro, LA. The Mayor is the executive officer of the Town, while theCouncil members are the governing authority of the Town for the purpose of legislationand policy making. The five Council members receive no compensation. The Townprovides the following services to its 1,152 residents: public safety (police), highwaysand streets, gas, water, sewer, and sanitation facilities through the utility fund,culture/recreation and general administrative services.

The accounting and reporting policies of the municipality conform to generally acceptedaccounting principles as applicable to governments. Such accounting and reportingprocedures also conform to the requirements of Louisiana Statutes 24:517 and to theindustry audit guide, Audits of State and Local Governmental Units.

I.B.l. Basis of Presentation

The accompanying financial statements of the Town of Wisner have been prepared inconformity with generally accepted accounting principles (GAAP) as applied togovernmental units. The governmental Accounting Standards Board (GASB) is theaccepted standard-setting body for establishing governmental accounting andfinancial reporting principles.

I.B.2. Reporting Entity

As the municipal governing authority, for reporting purposes, the Town of Wisner,Louisiana is considered a separate financial entity. The financial reporting entity consistsof (a) the primary government, (b) organizations for which the primary government isfinancially accountable, and (c) other organizations for which nature and significance oftheir relationship with the primary government are such that exclusion would cause thereporting entity's financial statements to be misleading or incomplete.

WISNOSNotes 23



Governmental Accounting Standards Board (GASB) Statement No. 14 establishedcriteria for determining which component units should be considered part of the Town ofWisner, Louisiana for the financial reporting purposes. The basic criterion for includinga potential component unit within the reporting entity is financial accountability. TheGASB has set forth criteria to be considered in determining financial accountability. Thiscriteria includes:

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

a. The ability of the municipality to impose its will on that organizationand/or

b. The potential for the organization to provide specific financial benefitsto or impose specific financial burdens on the municipality.

2. Organizations for which the municipality does not appoint a votingmajority but are fiscally dependent of the municipality.

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

As required by generally accepted accounting principles, these financial statementspresent the Town of Wisner, Louisiana.

The prior fiscal year ended June 30, 2004 marked the first year the Town of Wisnerpresented its annual financial audit in compliance with the Governmental AccountingStandards Board Statement Number 34. GASB 34 established new requirements and anew reporting model for the annual financial reports of state and local governments.GASB Statement 34 was developed to make annual financial reports easier to understandand to be more useful to the people who use governmental financial information to makedecisions. This fiscal year ending June 30, 2005 will be the second year in which thereports will be presented in compliance with GASB 34 compliance.

I.B.3. Government-Wide and Fund Financial Statements

Government-wide Financial Statements

The government-wide financial statements include the Statement of Net Assets and theStatement of Activities. These statements report financial information for the Town as awhole excluding fiduciary activities such as employee pension plans. The primarygovernment and component units are presented separately within the financial statementswith the focus on the primary government. Individual funds are not displayed but thestatements distinguish governmental activities, generally supported by taxes and Town

WISNOSNotes 24



general revenues, from business-type activities, generally financed in whole or in partwith fees charged to external customers.

The statement of activities reports the expenses of a given function offset by programrevenues directly connected with the functional program. A function is an assembly ofsimilar activities and may include portions of a fund or summarize more than one fund tocapture the expenses and program revenues associated with a distinct functional activity.Program revenues include: (1) charges for services which report fees, fines andforfeitures, and other charges to users of the Town's services; (2) operating grants andcontributions which finance annual operating activities including restricted investmentincome; and (3) capital grants and contributions which fund the acquisition, construction,or rehabilitation of capital assets and include fees to developers. These revenues aresubject to externally imposed restrictions to these program uses. Taxes and other revenuesources not properly included with program revenues are reported as general revenues.

Fund Financial Statements

Fund financial statements are provided for governmental, proprietary, and fiduciaryfunds. Major individual governmental and enterprise funds are reported in separatecolumns with composite columns for non-major funds.

I.B.4. Measurement Focus, Basis of Accounting, and Financial StatementPresentation

The financial statements of the Town are prepared in accordance with generally acceptedaccounting principles (GAAP). The Town's reporting entity applies all relevantGovernmental Accounting Standards Board (GASB) pronouncements and applicableFinancial Accounting Standards Board (FASB) pronouncements and AccountingPrinciples Board (APB) opinions issued on or before November 30, 1989, unless theyconflict with GASB pronouncements. The Town's reporting entity does not apply FASBpronouncements or APB opinions issued after November 30, 1989.

The government-wide statements report using the economic resources measurementfocus and the accrual basis of accounting generally include the reclassification orelimination of internal activity (between or within funds). However, internal eliminationsdo not include utility services provided to Town's departments. Reimbursements arereported as reductions to expenses. Proprietary and fiduciary fund statements andfinancial statements of the Town's component units also report using this same focus andbasis of accounting although internal activity is not eliminated in these statements.Revenues are recorded when earned and expenses are recorded when a liability isincurred, regardless of the timing of related cash flows. Property tax revenues arerecognized in the year for which they are levied while grants are recognized when grantoreligibility requirements are met.

WISNOSNotes 25


Notes to the Financial StatementsJune 30, 2005^̂ ••̂ •̂ •̂̂ ^̂ ••̂ •̂ ^

Pension trust funds recognize employer and participant contributions in the period inwhich contributions are due and the Town has made a formal commitment to provide thecontributions. Retirement benefits and refunds are recognized when due and payable inaccordance with the terms of the plan.

Governmental fund financial statements reports use the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues arerecognized when they are both measurable and available. Available means collectiblewithin the current period or soon enough thereafter to pay current liabilities. The Townconsiders revenues to be available if they are collected within 60 days of the end of thefiscal year. Expenditures are recorded when the related fund liability is incurred, exceptfor general obligation bond principal and interest which are reported as expenditures inthe year due.

Major revenue sources susceptible to accrual include sales and use taxes, property taxes,franchise taxes (fees), intergovernmental revenues, and investment income. In general,other revenues are recognized when cash is received.

Operating income reported in proprietary fund financial statements includes revenues andexpenses related to the primary, continuing operations of the fund. Principal operatingrevenues for proprietary funds are charges to customers for sales or services. Principaloperating expenses are the costs of providing goods or services and includeadministrative expenses and depreciation of capital assets. Other revenues and expensesare classified as non-operating in the financial statements.

When both restricted and unrestricted resources are available for use, it is the Town'spolicy to use restricted resources first, then unrestricted resources as needed.

I.B.5. Fund Types and Major Funds

Governmental Funds

The Town reports the following major governmental funds:

General Fund- reports as the primary fund of the Town. This fund is used toaccount for all financial resources not reported in other funds.

Proprietary Fund-The Town reports the following enterprise funds:

Water Utilities Fund- accounts for the operating activities of the Town's waterutilities and sewer services. This is not a major fund.

WISN05Notes 26



I.C. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY

I.C.I. Cash and Investments

The Town maintains and controls cash and investments, some of which are restricted.Legal restrictions and the Town's policies governing deposits and investments arediscussed in Notes III.A.l. and III.A.2.

The Town's reporting entity considers highly liquid investments (including restrictedassets) with an original maturity of three months or less when purchased to be cashequivalents.

Investments are reported at fair value that is determined using selected bases. Short-terminvestments are reported at cost that approximates fair value. Securities traded on anational or international exchange are valued at the last reported sales price at currentexchange rates. Managed funds related to the retirement systems not listed on anestablished market are reported at estimated fair value as determined by the respectivefund managers based on quoted sales prices of the underlying securities. Cash depositsare reported at carrying amount that reasonably estimates fair value. The composition ofpension trust investments, additional cash and investment information, and fair values arepresented in Note III.A.l.

I.C2. Investment Income

Investment income, which includes changes in the fair value of investments, isadministrated by both funds as shown in Note III.A.2.

I.C.3. Capital Assets

Capital Outlays are recorded as expenditures of the General Special Revenue and CapitalProjects Funds and as assets in the government-wide financial statements to the extent theTown's capitalization threshold is met. In accordance with GASB Statement No. 34,infrastructure has not been capitalized due to an existing exception for Phase 3 localgovernments with annual revenues of less than $10 million.

Depreciation is recorded on general fixed assets on a government-wide basis. Capitaloutlays for Proprietary Funds are recorded as fixed assets and depreciated over theirestimated useful lives on a straight-line basis and government-wide basis. All fixedassets are valued at their estimated fair market value on the date donated.

Maintenance, repairs, and minor equipment are charged to operations when incurred.Expenditures that materially change capacities or extend useful lives are capitalized.

WISNOSNotes 27



Upon sale or retirement of land, buildings, and equipment, the cost and relatedaccumulated depreciation, if applicable, are eliminated from the respective accounts andany resulting gain or loss is included in the results of operations.

I.C.4. Long-Term Debt

Long-term obligations expected to be financed from governmental funds are reported inthe general long-term obligations account group. Expenditures for principal and interestpayments for long-term obligations are recognized in the governmental funds when due.Long-term obligations expected to be financed from proprietary fund operations areaccounted for in those funds.

I.C.5. Fund Equity

Contributed Capital

Contributed capital is recorded in the Enterprise Fund for capital grants restricted for theacquisition or construction of capital assets. Contributed capital is not amortized basedon the depreciation on that portion of the assets acquired or constructed from suchresources. Reserves represent those portions of fund equity not appropriable forexpenditures or legally segregated for a specific future use.

Designated Fund Balances

Designated fund balances represent tentative plans for future use of financial resources.

I.D. REVENUES, EXPENDITURES, AND EXPENSES

LD.l. Property Taxes

Property taxes attach as an enforceable lien on property as of January 1. Taxes are leviedby the Town in September or October and are actually billed on October 1, and aremailed to the taxpayers in November. Billed taxes become delinquent on January 1 ofthe following year. Revenues from ad valorem taxes are budgeted and the year billed.Sales taxes collected are also on the accrual basis.

The Town bills and collects its own property taxes using the assessed value determinedby the tax assessor of Franklin Parish.

The year ended June 30, 2005 taxes of 6.24 mills were levied on property with assessedvaluations totaling $2,900,644 and were deducted as follows:

General corporate purposes 6.24 mills

WISNOSNotes 28


Notes to the Financial StatementsJune 30, 2005•̂̂ ^^^^ •̂̂ ^^ •̂̂ •M

Property tax revenues are recognized when they become available. Available includesthose property tax receivables elected to be collected within sixty days after year-end.Delinquent taxes are considered fully collectible and therefore an allowance foruncollectible taxes is provided.

Fines, bond forfeiture, and fees are recognized when collected by the Town. Interestincome is recorded when the Bank credits it to the accounts.

I.D.2. Expenditures

Salaries are recorded as expenditures when earned by employees.

Purchases of various operating supplies, etc. are recorded as expenditures when therelated fund liability is incurred.

Principal and interest on general long-term debt and installment purchase payments arerecognized when due.

I.D.3. Compensated Absences

Town employees are entitled to ten days of compensated absences. However,compensated absences do not vest or accumulate and are recorded as expenditures whenthey are paid.

NOTE 11. BUDGETARY INFORMATION

11. A.I. Budget Policy and Practice

The Town Clerk submits an annual budget to the Town council in accordance with theTown Charter and the Wisner Municipal Budget Act. The budget is presented to theCouncil for review, and public hearings are held to address priorities and the allocation ofresources. In June, the Town Council adopts the annual fiscal year budgets for Townoperating funds. Once approved, the Town Council may amend the legally adoptedbudget when unexpected modifications are required in estimated revenues andappropriations.

II.A.2. Basis Of Budgeting

Each fund's appropriated budget is prepared on a classified basis. Revenues are budgetedby source. Expenditures are budgeted by department and class as follows: personalservices, other services and charges, supplies, capital outlay, transfers, and debt service.Budget revisions at this level are subject to final review by the Town Council.

WISN05Notes 29



The budgets for the operating funds and are prepared on accrual basis. Revenues arebudgeted in the year receipt is expected; and expenditures,the year that the applicable purchase orders are expected to be issued. Public hearings areheld to obtain public taxpayer comments.

II.A.3. Encumbrance Accounting

Encumbrance accounting was not used.

NOTE III. DETAILED NOTES ON FUNDS

III.A. ASSETS

m.A.l. Cash and Cash Equivalents

Cash includes amounts in demand deposits, interest-bearing demand deposits, and moneymarket accounts. Cash equivalents include amounts in time deposits and thoseinvestments with original maturities of 90 days or less. Under state law, the Town ofWisner may deposit funds in demand deposits, interest-bearing demand deposits, moneymarket accounts, or time deposits with state banks organized under Louisiana law andnational banks having their principal offices in Louisiana.

At June 30, 2005, the Town had cash totaling $547,108 as follows:

Demand Deposits $ 56,951Restricted Cash and Investments 490,157

Total $ 547,108

Under state law, the Town of Wisner may invest in United States bonds, treasury notes,or certificates. These are classified as investments if their original maturities exceed 90days. However, if the original maturities are 90 days or less, they are classified as cashequivalents. Investments are stated at cost.

Cash and investments are secured as follows:

Bank Balances $ 412,976Federal Deposit Insurance 100,000Pledge Securities (Book Value) 545,000Pledge Securities have a Market Value of $ 538,356

The Town's bank accounts are sufficiently collateralized. The LAMP accountstotaling $134,132.68 are not included in the bank collateral.

III.A.2. Investments

WISNOSNotes 30



Investments are limited by Louisiana Revised Statute (R. S.) 33:2955 and theTown's investment policy. If the original maturities are 90 days or less,they are classified as cash equivalents.

(1) The fair market value is based on quoted market prices.(2) All investments are reported at original cost and both are disclosed in the notes.

III.A.3. Receivables

Receivables include amounts due from customers primarily for utility services.

The receivables of $27,126 at June 30, 2005 are as follows:Class of Receivable:

(1.) Sewer/Water receivable, net $22,149(2.) General Fund Receivables, net 4,977TOTAL RECEIVABLES $27,126

(These are net of allowance for Bad Debts, which are charged at 6 %.)

III.A.4. Restricted Assets

Certain proprietary fund assets are restricted for construction funded through long-termdebt. Net assets restricted for debt service include the excess of assets over certainliabilities restricted for the debt service on revenue bonds. Restricted assets are alsoreported in various funds for case deposited in bank accounts legally restricted forspecified uses such as the payment of debt service and fiscal fees on long-term debt ormortgage loans, and certificates of deposit (CD) issued in the Town or trust name anddeposited with the Town Treasurer in lieu of project retainages. Proceeds of restrictedCD's on deposit with the Town Treasurer are payable as liabilities payable fromrestricted assets. See Note I.B.4., paragraph 7 describing the priority for use of restrictedand unrestricted assets.

III.A.5. Capital Assets

Capital outlays are recorded as expenditures of the General Special Revenue and CapitalProjects Funds and as assets in the government-wide financial statements to the extent theTown's capitalization threshold is met. In accordance with GASB Statement No. 34,infrastructure has not been capitalized due to an existing exception for Phase 3 localgovernments with annual revenues of less than $10 million.

Depreciation is recorded on general fixed assets on a government-wide basis. Capitaloutlays for Proprietary Funds are recorded as fixed assets and depreciated over theirestimated useful lives on a straight-line basis and government-wide basis. All fixed

WISNOSNotes ' 31

TOWNOFWISNERWISHER, LOUISIANA


assets are valued at historical or estimated historical cost if actual cost was not available.Donated fixed assets are valued at their estimated fair market value on the date donated.

Maintenance, repairs, and minor equipment are charged to operations when incurred.Expenditures that materially change capacities or extend useful lives are capitalized.Upon sale or retirement of land, buildings, and equipment, the cost and relatedaccumulated depreciation, if applicable, are eliminated from the respective accounts andany resulting gain or loss is included in the results of operations.

The following is a summary of the changes in capital assets for the fiscal year ended June30, 2005.

Balance IncreasesGOVERNMENTAL ACTIVITIES Decreases Balance

Capital Assets Not Depreciated:Land and Land Improvements

Total Capital Assets not beingDepreciated

Other Capital Assets:BuildingsVehiclesMachinery and EquipmentLandscapingTotal Other Capital Assets

TOTAL CAPITAL ASSETS

Less Accumulated Depreciation:BuildingsImprovementsVehiclesMachinery and EquipmentLandscapingTotal Accumulated Depreciation

Total

6/30/2004

$ 57,000

57,000

724,358191,415217,26379,270

1,212,306$1,269,306 $ 6322

00

6,3220

6322

$ 52,983156,738127,883198,9841,988

538,576

$ 018,70225,282

8,5761,982

54,542

6/30/2005

$ 57,000

57,000

724,358191,415223,58579,270

1,218,628$1,275,628

52,983175,440153,165207,5603970

593,118

$ 730,730 $ 25,992 $ 0 $ 682,510

Governmental activities capital assets net of accumulated depreciation at June 30, 2005are comprised of the following:

General Capital Assets, Net $682,510Total $682,510

Current Depreciation of General Fund Assets was allocated as follows:Administrative ExpensePublic Safety

$41,99711,465

WISNOSNotes 32



Public Works 1Total Accumulated Depreciation $54

,080,522

(Differences in totals are due to rounding up or rounding down of figures.)

BUSINESS-TYPE ACTIVITIES

Assets Not Depreciated:LandWater/Sewer SystemEquipment

Totals

Less Accumulated Depreciation:LandWater/Sewer SystemEquipment

Total AccumulatedDepreciation

Net Assets

Balance Increases Decreases6/30/2004

$ 13,200 $ 0 $ 02,727,896 0 0

149,578 0 0

$2,890,764 $ 0 $ 0

$ 0 $ 0 $ 01,103,373 0 0

27,279 14,963 0

$1,130,652 $ 14,963 $ 0

$1,760,022 $(83,160) $ 0

Balance6/30/2005

$ 13,2002,727,846

149,578

$ 2,890,674

$ 01,171,570

42,242

$ 1,213,812

$ 1,676,862

(Differences in totals are due to rounding up or rounding down of figures.)

Water Utility Projected Useful LivesWellsStorage tanksPurification plantLines and meters

Sewerage Utility

20 years40 years33 years40 years

Projected Useful LivesPump stations 40 yearsLines 40 yearsAutos and trucks 5 yearsOther equipment 5 years

IILB. LIABILITIES

ffl.B.l. Long-Term Obligations

WISNOSNotes 33



Long-term obligations expected to be financed from governmental funds are reported inthe general long-term obligations account group. Expenditures for principal and interestpayments for long-term obligations are recognized in the governmental funds when due.Long-term obligations expected to be financed from proprietary fund operations areaccounted for in those funds.

Bonds payable at July 1, 2004 $ 1,008,652La Public Facilities 24,000

Bonds Principal Paid 10.434Interest Paid 4,761Total Bond Payment 15,195Bonds payable at June 30, 2005 54,727Balance Bonds Payable $ 1,001,619(See Note I.B.4.)

All Town of Wisner bonds outstanding at June 30, 2005 in the amount of $1,001,619are general obligation bonds (or other as indicated) with maturities from 1997 to2029, and interest rates from 4.0 to 6.0 percent. Bond principal and interest payablein the next fiscal year are $54,727

All principal and interest requirements are funded in accordance with Louisiana law bythe annual ad valorem tax levy on taxable property within the parish (or other asindicated). At June 30, 2005 The Town of Wisner has accumulated $490,157 in the debtfunds for future debt requirements. There are a number of limitations and restrictionscontained in the various bond indentures. The Town is in compliance with all significantlimitations and restrictions.

Bonds payable at June 30, 2005 are comprised of the following individual issues:

$ 706,000 utility revenue bonds dated 11/1/89, payable in 40consecutive annual payments of $47,231, included interest at 6 %,secured by revenue of the utility system. $ 602,864

$ 350,000 utility revenue bonds, dated 2/27/92, payable in 40consecutive annual payments of $22,691, including interest at 5.75 %,secured by revenue of the utility system. 307,054

Total Revenue Bonds: $ 909,918

Certificate of Indebtedness-GF 67,699Louisiana Public Facilities 24,000

Total Bonds Payable: $ 1,001,617

WISNOSNotes 34

TOWN OF WISHERWISNER, LOUISIANA


The annual requirements to amortize all debt outstanding as of June 30, 2005, includedinterest payments of $73,922 follows:

Annual Requirements toYear EndingJune 30, 2004

20062007200820092010

Thereafter

GeneralObligation

—

Amortize Long-Term

Revenue$ 73,922 $

73,92273,92273,92273,922

1,523,657

Debt

Total73,92273,92273,92273,92273,922

1,523,657Total $ 1,967,189 $ 1,967,189

Year(Dec.l)

2006200720082009

Certificate No.PrincipalPayment

17,00017,00018,00019,000

R-lInterest Rate

4.5 %4.5 %4.5 %4.5 %

Certificate No. R-2Year

(Dec. 1)20062007200820082010

Principal InterestPayment Rate

4,000 0.00 %4,000 0.00 %4,000 0.00 %4,000 0.00 %4,000 0.00 %

NOTE IV. OTHER

IV.A.1. One Percent Sales and Use Tax

The revenue derived from this tax is not dedicated to any specific purpose.

IV.A.2. Restrictions on Use of Utilities Revenues

Funds provided by utilities revenue is to be used in the following manner before they areavailable for other lawful purposes:

1. Operating expense of utility system.2. Revenue bond service funds.3. Revenue bonds reserve funds.4. Revenue bond depreciation and contingencies fund.

WISN05Notes 35



IV.A.3. Pension Plans

Municipal Employees' Retirement System

Substantially all employees of the Town of Wisner are members of the followingstatewide retirement systems: Municipal Employees Retirement System of Louisiana,and Municipal Police Employees Retirement System of Louisiana. These systems aremultiple-employer (cost-sharing), public employee retirement systems (PERS),controlled and administered by separate boards of trustees. Pertinent information relativeto each plan follows:

A. Municipal Employees Retirement System of Louisiana (System)—The System iscomposed of two distinct plans, Plan A and Plan B, with separate assets and benefitprovisions. (All employees of the municipality are members of Plan B.)

All permanent employees working at least 35 hours per week who are not covered byanother pension plan and are paid wholly or in part from municipal funds and allelected municipal officials are eligible to participate in the System. Under Plan B,employees who retire at or after age 60 with at least 10 years of creditable service orat or after age 55 with at least 30 years of creditable service are entitled to aretirement benefit, payable monthly for life, equal to 2 percent of their final averagemonthly salary in excess of $100 for each year of creditable service. Furthermore,employees with at least 10 years of creditable service, but less than 30 years, maytake early retirement benefits commencing at or after age 60, with basic benefitreduced 3 percent for each year retirement precedes age 62, unless he has at lease 30years of creditable service. In any case, monthly retirement benefits paid under PlanB cannot exceed 100 percent of final average salary. Final average salary is theemployee's average over 36 consecutive or joined months that produce the highestaverage. Employees who terminate with at least the amount of creditable servicestated above, and do not withdraw their employee contributions, may retire at theages specified above and receive the benefit accrued to their date of termination. TheSystem also provides death and disability benefits. Benefits are established by statestatute.

The System issues an annual publicly available financial report that includes financialstatements and required supplementary information for the System. That report maybe obtained by writing to the Municipal Employees Retirement System of Louisiana,7937 Office Park Boulevard, Baton Rouge, Louisiana 70809, or by calling (504)925-4810.

Funding Policy. Under Plan A, members are required by state statute to contribute9.25 percent of their annual covered salary and the Town of Wisner is required tocontribute at an actuarially determined rate. The current rate is 6.75 percent of annual

WISNOSNotes 36



payroll. Under Plan B, members are required by state statute to contribute 5.0 percentof their annual covered salary and the Town of Wisner is required to contribute at anactuarially determined rate. The current rate is 6.25 percent of annual coveredpayroll. Contributions to the System also include one-forth of one percent (exceptOrleans and East Baton Rouge) of the taxes shown to be collectible by the tax rolls ofeach parish. These tax dollars are divided between Plan A and Plan B basedproportionately on the salaries of the active members of each plan. The contributionrequirements of plan members and the Town of Wisner are established and may beamended by state statute. As provided by Louisiana Revised Statute 11:103, theemployer contributions are determined by actuarial valuation and are subject tochange each year based on the results of the valuation for the prior fiscal year. TheTown of Wisner contributions to the System for June 30, 2005, 2004, and 2003, were$4,560, $3,654 and $3,094, respectively, equal to the required contributions for eachyear.

Municipal Police Employees Retirement System of Louisiana (System)Plan Description. All full-time police department employees engaged in lawenforcement are required to participate in the System. Employees who retire at orafter age 50 with at least 20 years of creditable service or at or after age 55 with atleast 12 years of creditable service are entitled to a retirement benefit, payablemonthly for life, equal to 3 1/3 percent of their final average salary for each year ofcreditable service. Final-average salary is the employee's average salary over 36consecutive or joined months that produce the highest average. Employees whoterminate with at least the amount of creditable service stated above, and do notwithdraw their employee contributions, may retire at the ages specified previouslyand receive the benefit accrued to their date of termination. The system also providesdeath and disability benefits. Benefits are established by state statute.

The system issues an annual publicly available financial report that includes financialstatements and required supplementary information for the System. That report maybe obtained by writing to the Municipal Police Employees Retirement System ofLouisiana, 8401 United Plaza Boulevard, Baton Rouge, Louisiana 70809 or by calling(504)929-7411.

Funding Policy. Plan members are required by state statute to contribute 7.5 percentof their annual covered salary and the Town of Wisner is required to contribute at anactuarially determined rate. The current rate is 9.0 percent of annual covered payroll.The contribution requirement of plan members and the Town of Wisner is 9.0 percentof annual covered payroll. The contribution requirements of plan members and theTown of Wisner are established and may be amended by state statute. As providedby Louisiana Statute 11:103, the employer contributions are determined by actuarialvaluation and are subject to change each year based on the results of the valuation forthe prior fiscal year. The Town of Wisner contributions to the System for the years

WISNOSNotes 37



ending June 30, 2005, 2004, and 2003 were 4,032, 3,338, and 3,505 respectively,equal to the required contributions for each year.

IV.A.4. Accounts, Salaries, and Other Payables

Accounts, salaries, and other payables of $44,213.00 are as follows:

General Fund Prop Fund TotalWithholdings Payable $ 3,529 $ 1,773 $ 5,302Accounts Payable 36,146 2,765 38,911

Total $39,675 $ 4,538 $ 44,213

NOTE: The Withholdings Payable and Accounts Payable are the accumulation ofbills not paid at 6/30/2005 which should have been paid previously. They weresubsequently paid on or before 9/30/2005.

IV.A.5. Inter-fund Transactions

During the course of normal operations, the Town has numerous transactions betweenfunds including expenditures and transfers of resources primarily to provide services.The governmental funds financial statements generally reflect such transactions astransfers.

IV.A.6. Contingency

The Town of Wisner, Louisiana, received funds from a government grant, which issubject to audit by the federal or state government. The ultimate determination ofamounts received under these programs is generally based upon allowable costs reportedto and audited by the government. Until such audits have been completed and finalsettlements reached, there exists a contingency to refund any amount received in excessof allowable costs. Management is of the opinion that no material liability will resultfrom such audits.

IV.A.7. Subsequent Events

There were no subsequent events noted which would affect the financial statement.However, due to the fact an unexpected change in office personnel occurred at year end,and extended delay in replacement, bills for June and other months had not been paid.This resulted in a huge accounts payable difference from the previous year. Theseaccounts were paid on before October 31, 2005 and are detailed in Section IV.A.4Accounts, Salaries, and Other Payables of the Notes.

WISNOSNotes 38



IV.A.8. On-Behalf-Of Payment for Fringe Benefits

Employer pension plan contributions:Municipal Retirement $4,004

WISNOSNotes 39

Required Supplementary Information(Part II)

TOWN OF WISNERStatement of Revenues, Expenditures, and

Changes in Fund BalancesBudget (GAAP Basis)and ActualGeneral Fund


RevenuesRevenue-AD Velorum TaxesRevenue-Occ LicenseRevenue-Franchise Fee UtilityRevenue-FinesRevenue-Sales & Use TaxRevenue-Alcohol Bev. TaxRevenue-RentalsInt & Cost on Prop TaxesRevenue-Copy SalesRevenue-Insurance RebateGrantsRevenue-Misc IncomeInterest IncomeTransfer From WW FUNDTransfer To WWFD

Total Revenues

ExpensesAdministrative ExpensesPublic SafetyPublic WorksInterest Expense

Total Expenditures

Excess Revenue over Expenditures

Fund Balance - Beginning of YearFund Balance - End of Year

Schedule 1

OriginalBudget

$ 15,500 $25,00020,000

110,00082,000

----

2,300-

2,200--

-

257,000

123,000129,000

5,000-

257,000

-

_

$ - $

Final Year to DateBudaet

16,600 $28,00022,00095,00088,0002,200

---

2,400-

10,000---

264,200

90,000168,200

6,000-

264,200

-

_

- $

Actual

18,33333,40322,13047,53881,593

4222,225

201151

3,80228,3472,4482,6845,942

(22,690)

226,528

136,454102,82250,7593,579

293,614

(67,086)

(440,628)(507,714)

Variance

$ 1 ,7335,403

130(47,462)(6,407)(1,778)2,225

201151

1,40228,347(7,552)2,6845,942

(22,690)

(37,672)

(46,454)65,378(44,759)

3,579

22,756

(8,258)

(440,628)$ (448,886)

"depr allocnot in budget

(41 ,997)(11,465)(1,080)

$ (54,542)

SEE AUDITOR'S REPORT

WISNOSStmtRevExpChngFndBalBudActGF 41

TOWN OF WISNER Schedule 2P.O. DRAWER 290WISNER, LOUISIANAFOR THE YEAR ENDED JUNE 30, 2005

Schedule of Compensation Paid Elected Officials

Name and Address Position Salary

Gary M Cheek Mayor $0.00P.O. Box238Wisner, LA 71378318/724-7218

Allyn Jean Luckett Council Member $0.00P. O. Box 57Wisner, LA 71378318/724-6604

Elizabeth Johnson Council Member $0.00P.O. Box 156Wisner, LA 71378318/724-6477

Nettie Brown Council Member $0.00P. O. Box 53Wisner, LA 71378318/724-6255

Jesse Young Council Member $0.00P. O. Box 86Wisner, LA 71378318/724-7333

William G. Watkins Council Member $0.00P.O. Box316Wisner, LA 71378

WISNOSSchCompPaidElecOffi 42

Other Independent Auditor's Reportsand

Findings and Recommendations


2908 Cameron St, Suite CMonroe, LA 71201

Phone (318J-323-4656 • Fax (318)388-0724

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIALREPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To The Honorable MayorAnd the City CouncilTown of Wisner, Louisiana

I have audited the financial statements of the governmental activities, the business-typeactivities, and each major fund, of the Town of Wisner, Louisiana as of and for the yearended June 30, 2005, which collectively comprise the Town of Wisner, Louisiana's basicfinancial statements and have issued my report thereon dated December 27, 2005. I haveconducted my audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to the financial audits contained inGovernment Auditing Standards issued by the Comptroller General of the United States.

Compliance

As part of obtaining reasonable assurance about whether Town of Wisner, Louisiana'sfinancial statements are free of material misstatement, I performed tests of its compliancewith certain provisions of laws, regulations, contracts, and grants, noncompliance withwhich could have a direct and material effect on the determination of financial statementamounts. However, providing an opinion on compliance with those provisions was notan objective of my audit, and accordingly, I do not express such an opinion. The resultsof my tests disclosed no instances of noncompliance that are required to be reportedunder Government Auditing Standards. However, I noted certain immaterial instances ofnoncompliance that I have reported to management of Town of Wisner, Louisiana in aseparate letter dated December 27, 2005.

Internal Control Over Financial Reporting

In planning and performing my audit, I considered Town of Wisner, Louisiana's internalcontrol over financial reporting in order to determine my auditing procedures for thepurpose of expressing my opinions on the financial statements and not to provideassurance on the internal control over financial reporting. My consideration of theinternal control over financial reporting would not necessarily disclose all matters in theinternal control over financial reporting that might be material weaknesses. A material

WISNOSComplianceGAS 44

weakness is a condition in which the design or operation of one or more of the internalcontrol components does not reduce to a relatively low level the risk that misstatementsin amounts that would be material in relation to the financial statements being auditedmay occur and not be detected within a timely period by employees in the normal courseof performing their assigned functions. I noted no matters involving the internal controlover financial reporting and its operation that I considered to be material weaknesses.However, I noted other matters involving the internal control over financial reporting thatI have reported to management of Town of Wisner, Louisiana, in a separate letter datedDecember 27, 2005.

This report is intended solely for the information and use of the management, LouisianaLegislative Auditor, and federal awarding agencies and pass-through entities and is notintended to be and should not be used by anyone other than these specified parties.Under Louisiana Revised Statute 24:513, this report is distributed by the LegislativeAuditor as a public document.

Jimmie Self, CPAMonroe, LouisianaDecember 27, 2005

WISN05ConplianceGAS 45

JimmieSelf,CPAA Professional Accounting Corporation


Phone (318) 323-4656 Fax (318) 388-0724

SCHEDULE OF FINDINGS AND QUESTIONED COSTSFOR THE YEAR ENDED JUNE 30, 2005

I have audited the financial statements of Town of Wisner as of and for the year endedJune 30, 2005, and have issued my report dated December 27, 2005. I conducted myaudit in accordance with generally accepted auditing standards applicable to financialaudits contained in Government Auditing Standards, issued by the Comptroller Generalof the United States and the provisions of OMB Circular A-133. My audit of thefinancial statements as of June 30, 2005 resulted in an unqualified opinion (qualified,adverse, disclaimer).

Section I Summary of Auditor's Reports

a. Report on Internal Control and Compliance Material to the Financial Statements

Internal ControlMaterial Weaknesses yes X no Reportable Conditions yes X no

ComplianceCompliance material to Financial Statements yes X no

b. Federal Awards

Internal ControlMaterial Weaknesses yes X no Reportable Conditions yes X no

Type of Opinion On Compliance: Unqualified X QualifiedFor Major Programs Disclaimer Adverse

Are their findings required to be reported in accordance withCircular A-133, Section 510(a)? yes X no

c. Identification of major Programs:

10.418 Loans outstanding at June 30, 2005 withFarmers Home Administration were in the amount of $909,918.95.

WISNOSFindingsSchedQuesCosts 46

TOWN OF WISNERSummary Schedule of Current Year Findings — June 30, 2005

AndPrior Year Findings - June 30, 2004

Findings Number 2005-01

State Income Tax withholdings were not filed or paid in the year ended June 30,2005 for any of the four quarters.

Recommendation:

The Town should report and pay all payroll withholding taxes in a timely manner.

Conclusion:

All were filed and paid in October 2005 a soon as non-payment was discoveredby new accounting personnel. They are requesting elimination of penalties andinterest.

Finding Number 2005-02

Federal Payroll taxes paid were insufficient. Records showed that there was notenough paid for Social Security.

Rec ommendat ion:

Greater attention should be given to correct payment of all payroll taxes, bothemployee and employer contributions.

Conclusion:

An additional amount was subsequently paid once the shortfall in payment ofwithholdings was determined. Personnel will attempt to have the computerprogram corrected to withhold correct amount of taxes from employees' payroll.


Note payable due to the Louisiana Public Facilities Authority in the amount of$4000.00 was not paid until November, 2005. Note was due to be paid March 15,2005.

Recommendation:

Greater attention should be given to scheduling of payments in a timely manner.

WISNOSFmdingsAndPrnrYear 47

Conclusion:

Management agrees to give greater attention to scheduling and making timelypayments.


A search was made for unrecorded Accounts Payable at 6/30/2005. Theaccounting showed a balance owed of $36,146.00. These were discovered andpaid in October 2005. Many of the accounts had been miscoded.

Recommendations: Codes should be corrected and care should be given in thecoding of all accounts in the future. A list of codes should be available andpersonnel should be schooled in the proper use of these codes.

Conclusion:

The codes and account balances were corrected.


None of the activities in the Louisiana Asset Management Pool (LAMP) accounthad been recorded.

Recommendations: There are six LAMP accounts. These have not been carriedon the books. These should be carried as asset accounts and appropriately namedas shown on the LAMP reports.

Conclusion: The Town clerk will be making these changes in accounting toprovide a paper trail for accounting of these funds as they are invested withLAMP and then withdrawn from LAMP accounts.

PRIOR YEAR FINDINGS - JUNE 30, 2004

There were no findings for the prior year ended June 30, 2004.

\VISN05FindingsAndPriorYear 48



Phone 318/323-4656 • Fax 318/388-0724

MANAGEMENT RECOMMENDATIONSFor the Year Ended June 30, 2005

To the Mayor and Council MembersTown of WisnerWisner, Louisiana

During my audit, the following items came to my attention. The same are listed in the Summary Scheduleof Current Year Findings. They are as follows, and my recommendations are included:

(1.) A Note Payable due to the Louisiana Public Facilities Authority in the amount of $4000.00 wasdue March 15, 2005 but was not paid until November, 2005. A similar incident occurred duringthe fiscal year ended June 30, 2004 in which the same note payable was not paid until August2004. Greater care must be given to paying liabilities in a timely manner, especially a notepayable like this which is paid not monthly but in one installment per year.

(2.) None of the activities in the Louisiana Asset Management Poo! (LAMP) account had beenrecorded. There are six accounts held for the Town by LAMP. None of these are set up asaccounts on the Town's books. Such a practice makes it difficult to maintain a paper trail forthese transactions. It is my recommendation that asset accounts be set up for each of the six lampaccounts named for the corresponding LAMP account for ease of following transactions. Alldeposits and withdrawals with LAMP should hereafter flow through these accounts.

(3.) Accounts payable in the amount of $36,146.00 which had not been paid were found to bemiscoded. I would recommend that an up-to-date list of account codes should be accessible whencomputer entries are being made. Personnel should be schooled in properly coding checks,deposits, and invoices for accounting purposes.

Jimmie Self, CPAMonroe, LouisianaDecember 27, 2005

WISNQSMgmtRecomm 49

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