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Town ofSimmesport
Annual Financial Statements As of and for the Year Ended
June 30, 2013
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 Legislative Auditor and, where appropriate, at the office of the parish clerk of court.
Release Date J A i j i>g ^Qj^
DUCOTE& COMPANY Certi£ed Public Accountants
219 North Waabington Street P.O.Box 309
Marksville, lA 71361
TOWN OF SIMMESPORT, LOUISIANA Annual Financial Statements
As of and for the year ended June 30,2013
TABLE OF CONTENTS
INDEPENDENT AUDITORS' REPORT
REQUIRED SUPPLEMENTAL INFORMATION (PART I) Managemenfs Discussion and Analysis
BASIC FINANCIAL STATEMENTS
Govemment-Wlde Financial Statements: Statement of Net Position
Statement of Activities
Fund Financial Statements: Govemmental Funds:
, Balance Sheet and Reconciliation of the Govemmental Funds Balance Sheet to the Govemment-Wide Financial Statement of Net Position
Statement of Revenues, Expenditures, and Changes in Fund Balances
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Govemmental Funds to the Statement of Activities
Proprietary Funds:
Statement of Net Position
Statement of Revenues, Expenses, and Changes in Fund Net Position
Statement of Cash Flows
Fiduciary Funds:
Statement of Fiduciary Net Position - Agency Funds
Notes to the Financial Statements
REQUIRED SUPPLEMENTAL INFORMATION (PART Ii)
Budget Comparison Schedules General Fund Sales Tax Fund
Notes to Budget Comparison Schedules
PAGE
1-2
4-8
10
11
12
13
14
15
16
17
18
19-33
35 36 37
TOWN OF SIMMESPORT, LOUISIANA Annual Financial Statements
As of and for the year ended June 30,2013
TABLE OF CONTENTS (Continued)
OTHER SUPPLEMENTAL SCHEDULES:
Detailed financial statements:
General Fund: Statement of Functional Expenditures-
Budget (GAAP Basis) and Actual 39-41
Enterprise Funds: Statement of Operating Expense Detail
Budget (GAAP Basis) and Actual 42-44
Non-Major Govemmental Funds: Combining Balance Sheet 45
Combining Statement of Revenues. Expenditures and changes in Fund Balances 46
Schedule of Compensation Paid to Elected Officials 47
OTHER REPORTS REQUIRED BY GOVERNMENTAL AUDmNG STANDARDS:
Independent Auditors* Report on Intemal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Govemment Auditing Standards 49-50
Schedule of Findings and Responses 51 -54
Status of Prior Audit Findings 55
Alaysia C. Ducote, CPA, PC t ^ i ' Joan S. Ducote, CFA, PC
UCOte & i nmpnrjy HopeJ.aagnani.CPA,PC Certified PuhUe Aeeountanta« %/
INDEPENDENT AUDITORS' REPORT
The Honorable Eric Rusic, Mayor And Members of the Council
Town of Slmmesport, Louisiana
We have audited the accompanying financial statements of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund Information, of the Town of Simmesf^rt, Louisiana, as of and for the year ended June 30, 2013. and the related notes to the financial statements, which collectively comprises the Town's basic financial statements, as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and feir presentation of these financial statements In accordance with accounting principles generally accepted in the United States of America; this indudea the design, implementation, and maintenance of Intemal control relevant to the preparation and fair presentation of financial statements that are fiee firom material misstatement, whether due to firaud or error.
AudKore' Responsibility
Our responsibility Is to express an opinion 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 Govemment Auditing Standards, Issued by the Comptroller General of the United States. Those standards require that we plan and perfbmn the audit to obtain reasonable assurance about whether the statements are free of material misstatement.
An audit Involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors* judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In maldng those risk assessments, the auditor consklers intemal control relevant to the entity's preparation and fair presentation of the financial statements In order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audit evidence we have obtained Is sufficient and appropriate to provide a reasonable basis for our audit opinions.
Opinions
In our opinion, the financial statements re fen^ to above present fairty. in all material respects, the respective financial position of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund infonnation of the Town of Slmmesport. Louisiana, as of June 30, 2013. and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended, in confbnnity with accounting principles generally accepted in the United States of America.
American Institute of • Members • Society of Louisiana Certified Public Accountants Certified Public Accountants
219 North Washington • Post Offics Box 309 • Marksville, Louisiono 71351 • <318) 2S3-6601 • Fhx f3id) 253-0721
The accompanying financial statements have been prepared assuming that the Town of Slmmesport. Louisiana, will continue as a going concern. As presented In the financial statements, the Town of Slmmesport had a cumulative $211,047 cumulative deficit fund balance in the General Fund as of June 30. 2013. As discussed In note 18 of the financial statements, the management of the Town has Initiated some con^ctlve action however this condition still raises substantial doubt about the Town's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Other Matters
Accounting principles generally accepted In the United States of America require that the managemenfs discussion and analysis and budgetary comparison information on pages 4 through 8 and 35 through 47 be presented to supplement the basic financial statements. Such infonnation. although not a part of the basic financial statements, is required by the Govemmental Accounting Standards Board, who considers It to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical contexL We have applied certain limited procedures to the required supplementary Information In accordance with auditing standards generally accepted In the United States of America, which consisted of inquiries of management about the methods of preparing the Infonnation and comparing the information for consistency with managemenfs responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the Information because the limited procedures do not provkle us with sufficient evklence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Slmmesport Louisiana's financial statements as a whole. The combining and Individual nonmajor fund financial statements and schedules described In the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and Individual non-major fijnd financial statements are the responsibility of management and were derived from and relate directly to the underiying accounting and other records used to prepare the financial statements. The information has been subjected to auditing procedures applied In the audit of the financial statements and certain additional procedures. Including comparing and reconciling such information directiy to the underiying accounting and ottier records used to prepare the financial statements or to the financial statements themselves, and other addlttonal procedures in accordance with auditing standards generally accepted In the United States of America. In our opinion, the Information is falriy stated in all material respects in relation to ttie financial statements as a whole.
Other Reporting Required by Govemment Auditing Standards
In accordance with Govemment Auditing Standards, we have also Issued our report dated November 26. 2013, on our consideration of the Town of SImmesporfs intemal control over financial reporting and on our tests of its compliance with certain provisions of taws, regulattons, contracts, and grand agreements and other matters. The purpose of tiiat report is to describe the scope of our testing of intemal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report Is an integral part of an audit pertormed in accordance with Govemment Auditing Standards in considering the Town of SImmesporfs Intemal control over financial reporting and compliance.
DUCOTE&COMP^ Maricsvlile. Louisiana November 26.2013
ANY
2
American Institute of * Members * Society t^Louisiana Certified Public Accountants Certified Public Aeeountants
219North Washington •Pbst Office Bos 309 • MaHuviUe, Louisiana 71351 • (318)263-6501 • F ^ (318) 2534)721
REQUIRED SUPPLEMENTAL INFORMATION (PART I) Management's Discussion and Analysis
Town of Simmesporty Louisiana Aianagement's
Discussion and Analysis June 30,2013
This discussion and analysis is intended to be an easily readable analysis of the Town of Simmesport*s financial activities based on currentiy known &cts. decisions or conditions. This analysis focuses on cunent year activities and should be read in conjunction with the financial statements that follow:
Report Layout
With die in^lementadon of Govemmental Accounting Standards Board Statement No. 34, *3asic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments," a goverament*s presentation of financial statements has been greatly changed. Besides the Management's Discussion and Analysis (MD&A), the report consists of govemment-wide statements, fund financial statements, notes to the financial statements, combining schedules of non-major funds and supplementary infomiation. The first several statements are highly condensed and present a govemment-wide view of the Town's finances. Within this view, all Town operations are categorized and reported as either govemmental or business-type activities. Govemmental activities include basic services such as police, fire, public works, parks and recreation, community development and general govemment administration, l i e sales tax fimd is also included in the govemmental activities. The Town's other activities of water and sewer and gas operations are reported within the business-type activities. These govemment-wide statements are designed to be more corporate-like in that all activities are consolidated into a total for the Town.
Basic FInaneial Statements
• The Statement of Net Position focuses on resources available for fiiture operations. In simple terms, this statement presents a smq>-shot view of the assets the community owns, the liabilities it owes and the net difference. The net difference is further separated into amounts restricted for specific purposes and imrestricted amounts. For the fiist time, govemmental activities reflect coital assets including infi:astructure and long-term liabiUties. Business-type activities have long reported capital assets and long-term liabilities. Also, for the first time, govemmental activities are reported on die accrual basis of accountijig.
• The Statement of Activities focuses on gross and net costs of town programs and the extent to which such programs rely upon general tax and other revenues. This statement summarizes and sinq)lifies the user's analysis to detennine the extent to y/^ch programs are self-supporting and/or subsidized by general revenues.
• Fund financial statements focus separately on major govemmental funds and proprietary funds. The Town's major goverumimtal fiinds are presented in their own column and the remaining funds are combined into a column titled **Other Govemmental Funds." A budgetary comparison is presented for the general fund, sales tax fimd and the Capital Projects Fund. Statements for die Town's proprietary fimds follow the govemmental fimds and include net assets, revenue, expenses and changes in net position, and cashflow.
• The notes to the financial statements provide additional disclosures required by governmental accounting standards and provide infonnation to assist die reader in understanding the Town's financial conditioiL
Readers desiring additional infonnation on non-major fimds can find it in the Combining Statements of Non-major Fimds section of this report Convicting the financial section of the report are schedules on capital assets and other financial schedules.
The MD&A is intended to explain the significant changes m financial position and differences in operation between the cunent and prior years. Significant changes fiom the prior year are explained in the following paiQgnphs.
Government-wide Financial Statements
Because this is the first year to report govemmental activities on the new standard, comparison to the prior year is not possible. In subsequent years, this section will discuss and analyze significant difforences. A condensed version of the Statement of Net Position at June 30,2013 follows:
Net Position at Year-end
Casii and Investments Other assets Capital assets
Total assets
Other liabilities Lxing-tenn liabilities
Total liabilities
Net position Investment in capital assets,
Net of related debt Restricted-Assigned fund balance Unrestricted
Total net position
Governmental ActivitlBa
$ 134.494 68.138
978.828
1.181.460
343.455 83,119
426.574
840.051 57.909
(143.074)
$ 754.886
Business^ype Activities
$ 108,676 $ 298,058
1.544,184
1.948,918
98,108 55.914
154,023
1,488,269 44,322
262.305
$ 1.794.896 $
Total Govemment
243.170 364,196
2.523.012
3.130,378
441.563 139.033
580.596
* 2,328,320
102.231 119.231
2,549.782
During the year ended June 30, 2013, the General Fund incurred deficit spending resulting m a deficit fimd balance. Overall the Govemmental Activities net assets decreased by $86,464 and the Business-type Activities net assets increased by $59,835, for an overall net decrease of $26,629, which is conqsrised mosdy of a decrease in oUier assets, capital assets net of an increase in liabilities.
A condensed version of the Statement Activities follows:
Govemmental and Proprietary Activities For the year ended June 30,2013
RftY^imss Program Revenues:
Charges for services
General Revenues:
Taxes
Franchise fees
Licenses and permits
Intergovemmental
Unrestricted Investment eamings
Rental Income
Miscellaneous
Grant revenue
Transfers
Total revenues and transfers
Expenses
General govemment
Public safety
Streets and bridges
Utility services-Water and Sewer
Utility senrices-Gas Operations
Interest and fiscal charges
Total Expenses
Increase (Decrease) In net position
Governmental
Activities
$ 49,459
375.654
88.709
74.858
8i;239
37 4,395
30.304
21.901
(13.948)
712,608
258.088
328.775
205.645
--
8.556
799.072
? (86,464)
Business-type
Artlvltles
$ 648,982
--•
-291
--
57.479
13.948
720,700
---
451.022
209,843
. 660.886
? 59,835
Total
Government
$ 698.441
375.654
86,709
74,858
81,239
328 4,395
30,304
79,360
. 1,433.308
256,096
328.775
206,645
451.022
209.843
8.556
1.459.937
$ (26.629)
Governmental activities. Govemmental program expenses decreased over the prior year by $25,858, and govemmental revenues decreased by $19,616 over the prior year for a net overall increase in operational results of $6,242. The general fond is still operating at a loss which increased the carryover fond deficit to a cumulative deficit of $211,047. The sales tax fond revenues increased by $12^41, over the prior year. The Town had a decrease in recurring expenditures largely due to budget cutbacks. However, the recurring revenues decreased by almost the same amount
Business-type activities. The water and sewer fond liad an operating net income of $7,995 while die natural gas fond also had an operating net income for the year of $37,891 before nonoperating revenues and expenses and any transfers in/out to other fonds. Transfers in from the sales tax iund were made for $17,100 to the water and sewer fond to fond the transfers required into the sinking and reserve fond for the 2011 Sewer Revenue Bonds. The natural gas fond had transfers out of $3,152. The net operational results were net operating income of $25,095 in the water and sewer fond and $34,740 in the natural gas fond.
Budgetary Highlights
Over the course of the year the Town (Council made revisions to the general fond operating budget, sales tax or the debt service fond budget In total, the general fond's expenditures were $6,051 more dian budgeted, and revenues were $97,599 less than bucketed. The overall net variance was $103,648 in excess e?q}enditures. Odier financing sources including transfers in were $17,248 less than budgeted for a total un&vorable budget variance of $120,897 in the general fund. The sales tax revenues were $17,561 more dian budgeted Net of operating transfers out, the sales tax fund ended the year with an overall favorable budget variance of $36,943.
Capital Assets and Debt Administration
Capital Assets
At June 30, 2013, the Town had $6,860,370 invested in capital assets, including police equipment, park and recreation focilities, buildings, and water, sewer and gas lines and construction in progress on the sewer improvement project This amount represents a net increase for die year of approximately $73,330 (current year additions net of deletions).
Capital Assets at Year-End
[.and
Building and Improvements
Machinery and Equipment
Utinty Plant and Equipment
Subtotal
Accumulated depredation
Capital assets, net
Debt Outstanding
$
—
L
Governmental
Activities
2012 2013
24,788 $ 24,786
614,843 614.843
1,516.541 1,589,671
.
2.156,170 2.229.500
1.157.882 1.250.672
998.288 $ 978.828
$
—
L
Business-Type
2012 2013
17.636 $ 17.636
--
4,613.234 4.613.234
4.630.870 4.630.870
2.984.359 3.086.686
1,646.511 $ 1.544.184
Totals
2012
$ 42.422 $
614,843
1,516,541
4.613.234
6.787,040
4.142,241
$ 2.644.799 $
2013
42,422
614,843
1,589,871
4.613.234
6.860.370
4,337.358
2.523.011
At year-end, the Town had a total debt outstanding of $194,691. This amount consisted of one sales tax bond issues and certificates of indebtedness totaling $78,000, one revenue bond payable totaling $55,914 and one capital lease totaling $60,777. This represents an overall net decrease in debt over the previous year of $8,727. More detailed information on the Town's long-term liabilities is presented in Uie notes to die financial statements.
Economic Factors and Next Year's Budgets and Rates
Hie Town is projecting excess expenditures in the General Fund of $172,566, before transfers in fiom the sales tax fond of $270,000 for die fiscal year ending June 30, 2014, leaving a projected surphis of $97,434 af^ other transfers in and out The projected operating net income Ooss) for the water and sewer fund is $53,430 and for the natural gas fimd $32,685, before any transfers to or from other funds. The overall oudook for 2014 is projected to be somewhat improved over the prior two years, however, the prior year deficit in the general fond wUl not be completely eliminated. The administration is working very hard to minimize expenses, sell property to generate revenue and cut back on salaries in order to stay widiin the operational budgets for the fiscal year and reduce the cumulative deficit in die general fund.
Financial Contact
The Town's financial statements are designed to provide our citizens, taxpayers, customers and creditors with a general overview of the Town's finances and to demonstrate the Town's accountability for the revenues it receives. If you have any questions about this report or need additional financial information, please contact Vemell Franklin, die Town Clerk at P. O. Box 145, Simmespoit, LA 71369.
BASIC FINANCIAL STATEMENTS
TOWN OF SIMMESPORT, LOUISIANA STATEMENT OF NET POSITION
JUNE 30,2013
Governmental Activities
Business-type Activities Total
ASSES Cash and Nerest-bearing deposits Receivables:
Utility and other recelvabtes Due from other govemments Accrued Interest Due from other funds
Restricted assets: Cash and cash equivalents Investments
Capital assets (net of accumulated depreciation)
TOTAL ASSETS
LIABILITIES
Accounts Payable Accmed expenses Due to other funds Payables frx)m restricted assets:
Utility deposits Cunent portion of tong-tenn debt Long terni bonds payable
TOTAL UABILmES
NET POSITION Investment In capita] assets, net of related debt Restricted ftir debt service Unrestricted
TOTAL NET POSmON
$134,494
57,820 10,318
0 0
0 0
978.828
$1,181,460
$14,683 15,647
257,487
0 55,658 83.119
426.574
840.051 57.909
(143.074)
$754,886
$39,772
52.847 0
92 243,119
38.663 30,241
1.544.184
$1,948,918
$28,954 0
250
68,904 -
55.914 154,023 .
1,468,269 44,322
262.305
$1,794,898
$174,266
110,667 10,318
92 243,119
38,663 30.241
2.523.011
$3,130,378
$43,637 15,647
257,717
68,904 55.658
139.033 580.597
2,328.320 102,231 119.231
$2.549.782
The accompanying notes are an integral part of this financial statement 10
TOWN OF SIMMESPORT, LOUISIANA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30.2013
Net (Expenses) Revenue and Change In Net Assets—-
ACTIVITIES Govemmental activities:
General govemment Public safety:
Police Fire
Streets and bridges Interest and fiscal charges
Total Govemmental Actlvttie
Business-type activities: Water and Sewer Gas Operations
Total Business-type AcUvltle
Total Town of Slmmesport
Expe Charges for
Services
$256,096 $0
Governmental Activities
$(256,096)
Buslnees-Type
Acttvitles Total
$(258,096)
322.849 5,925
205,645 8.556
799.071
451,022 209,844 660.866
1.459.937
49,459 0 0 0
49,459 _.
401.360 247.822 648.982 _
698.441 _
GENERAL REVENUES Taxes Franchise Fees Licenses and permits Intergovemmental Unrestricted Investment eamings Miscellaneous Rental Income
Grant revenue Transfers, net
Total general revenues, special
Items and transfiBrs
Change In net position
Net position beginning of year
Net position end of year
(273,390) (6,925)
(205.645) (8.556)
(749.612)
0 0 0 .
(749.812)
375,854 88,709 74,858 81,239
37 30,304 4,395
21,901 (13.948)
663.149 .
(86,464)
841.350
$764,886
0 0 0 0
0
(49,662) 37.778
f11.884) .
(11.884) .
0 0 0 0
291 0 0
57,479 13.948
71.719
59,835
1.735.081
$1,794,898
(273.390) (5.925)
(205,645) (8,558)
(749.612)
(49,662) 37.778
M1.884)
(761.498)
375,654 88,709 74,858 81,239
328 30,304 4.395
79,380 0
734.867
(26,629)
2.576.411
$2,549,782
The accompanying notes are an integral part of this financial statement
11
TOWN OP SIMMESPORT, LOUISIANA BALANCE SHEET - GOVERNMENTAL FUNDS AND
RECONCIUATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION
JUNE 30,2013
ASSETS Cash and interest-bearing deposits Receivables:
Taxes Accrued Interest Due from other govemments
TOTAL ASSETS
LIABILITIES Accounts payable Accrued expenses Due to other funds
TOTAL UABILTTIES
FUND BALANCE
Rratrtcted Assigned Unassigned
TOTAL FUND BALANCE
TOTAL UABILTTIES AND FUND BALANCE
General Fund
$34,473
21,696 0
10.318
$66,388
$13,881 15.647
247.906 277.435
0 0
(^11.047) (211.047)
$68,388
Sales Tax Fund
$42,111
36.224 0
0
$78,334
$802 0
9.561 10.363
0 67,972
0 67.972
$78,334
Non-Me|or Governmental
Funds
$57,910
0 0 0
$57,910
$0 0 0 0
57.909 1 0
57.910
$57,910
Total Govemmental
Funds
$134,494
57.820 0
10.311
$14,683 15,647
^57.467 287.797
57.909 67.973
(211,047) (85.185)
Amounts reported for govemmental activities In the statement of net position are differrent because:
Capital assets used in govemmental activities are not flnandal resources and therefore are not reported in the funds
Less: accumulated depreclafion Some liabilities. Including bonds payable, are not due and payable
in the cunent period and therefore are not reported In the funds
2,229,470 (1.250.642)
M38.7771
NET POSITION OF GOVERNMENTAL ACTIVITIES $754.886
The accompanying notes are an integral part of this financial statement
12
TOWN OF SIMMESPORT, LOUISIANA STATEMENT OF REVENUES. EXPENDITURES,
AND CHANGES IN FUND BALANCES -GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2013
Taxes Licenses Intergovernmental Rnes Franchise Fees Interest income Rental Income Grants and entitlements Miscelianeous
TOTAL REVENUES
EXPENPrrURES General govemment Public safety-Police Public safe^ - Fire Streets and drainage Capital outlay Debt service
TOTAL EXPENDITURES
Excess (deficiency) of
revenues over expenditures
OTHER FINANCING SOURCES fUSES) Proceeds firom bond sales/capital leases Operating transfers in Operating transfers out
General Fund
$33,069 74,858 81,239 49,459 88.709
0 4,395
21.901 10.591
Sales Tax
Fund
$342,585 0 0 0 0
26 0 0 0
Non-M^or Govemmental
Funds
$0 0 0 0 0
11 0 0
19.713
Totals Governmental
Funds
$375,654 74.858 81,239 49,459 88,709
37 4.395
21,901 3P.304
364.221
223.063 297,587
5.925 142,524 73.300 28.050
768.449
^404.228)
73.300 232.752
0
TOTAL OTHER FINANCING SOURCES (USES) 306.052
Excess (deficiency) of revenues over expenditures and other sources (uses)
FUND BALANCES AT BEGINNING OF YEAR
FUND BALANCES AT END OF YEAR
(98.177)
iHlBTO)
342.611
8.944 0 0 0 0 0
8.944
W9.667
0 0
(292.073^
f292.073)
41.593
26.378
19.724
0 0 0
19,713 0
41.428
61.141
(41.416)
0 45.373
0
45.373
3,957
53.953
726.S56
232.007 297,587
5.925 162,237 73,300 97.478
838.534
(111.978)
73,300 278,125
t292073)
59.352
(52,626)
(32.539)
$(211,047] $67.972 $57,910 $(85.165)
The accompanying notes are an integral part of this financial statement 13
TOWN OF SIMMESPORT. LOUISIANA RECONCILIATION OF THE STATEMENT OF REVENUES
EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL TO THE STATEMENT OF ACTIVITIES
YEARENDED JUNE30. 2013
Net change In fund balances - Govemmental Funds $(52,626)
The change In net position reported for govemmental activities is 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 aDocated over their estimated useful lives and reported as depreciation expense ($92,760). This expense exceeded capital expenditures net of dlsposats of ($73,330) in the current period. (19,430)
Debt service payments are deducted as expenditures In the cunent year. On the statement of activities debt payments are not deducted since they reduce the liability on the statement of net assets. I3et}t payments net of new debt issued for ththe current year are added tiack to reconcile to the net change In position. (14.408)
Change in net position of govemmental activities $(86.464)
The accompanying notes are an Integral part of this financial statement 14
TOWN OF SIMMESPORT, LOUISIANA STATEMENT OF NET POSITION - PROPRIETARY FUNDS
JUNE 30,2013
Water& Sewer System
Natural Gas
System Total
Cash and cash equivalents Receivables:
Accrued interest Utility and other receivables
Due from other fiinds Restricted assets:
Cash and cash equivalents Investmerrts
Fixed assets Land Plant and equipment Accumulated depredation
TOTAL ASSETS
UABIUTIES AND FUND EQUITY
Accounts payable Due to other funds Revenue bond payable Payable from restricted assets -
Utittty deposits
$33,222 $6,550 $39,772
Total Liabilities
20 39,605
225,378
15,793 6.700
17,636 3,684,471
(2.225.401)
$22,621 0
55,914
22.493
101.028
72 13.242 17,741
22,870 23,541
0 1.028,763 (881.288)
$6,333 250
0
46.411
52,994
92 52.847
243.119
38.663 30,241
17.638 4,613,234
(3.086.686)
$1,948,918
$28,954 250
55,914
68.904
154.P2?
NET POSITION Investment In capital assets
net of related debt Retained eamings
Restricted for debt service Unrestricted
1.320,792
44,322 231.263
167.477
0 31.021
1,486,269
44.322 282.304
TOTAL NET POSITION $1.596.397 $198.499 $1.794.896
The accompanying notes are an Integral part of this financial statement IS
TOWN OF SIMMESPORT, LOUISIANA STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2013
OPERATING REVENUES Charges for services -
Water services Sewer services Natural gas sales Penalties and service charges
TOTAL OPERATING REVENUES
OPERATING EXPENSES General govemment Water system Sewer system Natural gas system
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NONOPERATING REVENUES EXPENSES): Grant revenue Int^est income
TOTAL NONOPERATING REVENUES (EXPENSES) 57.657
Income (loss) before operating transfers
Water & Sewer
System
$226,943 157,827
0 16.590
, 401.360
41,136 157.893 251.993
0
451.022
( 4 9 . 6 ^
57,479 178
57.657
7.995
Natural Gas
System
$0 0
241.520 6.103
247.622
36.920 0 0
172.924
209.844
37.778
0 113
113
37.891
Total
$226,943 157.827 241,520 22.693
648.982
78.055 157.893 251,993 172.924
660.866
(11.884)
57.479 291
57.770
.45.886
OPERATING TRANSFERS IN fOUT):
Operating transfere in (out) 17.100 f 3.152)
TOTAL OPERATING TRANSFERS f3.152) 13.948
NET INCOME (LOSS) 25,095 34.740 59.835
NET POSITION AT BEGINNING OF YEAR 1.571.302 163.759 1.735.061
NET POSITION AT END OF YEAR $1.596.397 $198.499 $1.794.896
The accompanying notes are an Integral part of this financial statement 16
TOWN OF SIMMESPORT. LOUISIANA STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30,2013
CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customera Payments to suppllera Payments to employees for salaries and benefits
Net cash provided by operstins acttvitles
Cash flows from capital and realated financing acUviUes: Nonoperating grant revenues Operating transfere in (out) from other funds Increase (decrease) in due (from) to other funds Increase (decrease) in revenue bonds payable
Net cash provided fayf(used) for capital and realated financing acttvitles
Cash fiows from Investing activities: interest received from Interest bearing deposits Net (increase) decrease h restricted cash
Net cash provided t)y/(u8ed) fdr Investtng acttvitles
Net increase (decrease) In cash and cash equivalents
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
Water and Sewer
Fund
$410,504 (191,794) f186.664)
32.146
57,479 17,100
(71,285) (22.000)
<18.706)
178 (3.255)
(3.077)
10.363
22.859
$33,222
Natural Gas Fund
$246,831 (125,526) (61.726) 61.579
0 (3,152)
(41,015) 0
(44.167)
113 (11.755)
(11.642)
5.770
780
$6,660
Total
$659,335 (317,320) (248.290)
93.724
57.479 13.948
(112.300) (22.000)
(62.873)
291 (15.010)
(14.719)
16,132
23.639
$39,771
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTtVlTlES
Operating income (loss)
Depreciation Changes In assets and Ilabiilties:
(increase) decrease in accounts receivable (increase) decrease In other receivables Increase (decrease) In accounts payable Increase (decrease) in customer deposits Increase (decrease) In capital lease payable
Net cash provided by/(used) fbr operating activities
$(49,662)
78.182
6,686 4
(4,320) 3.255
(1.198)
$32.146
$37,778
24.146
(34) 8
(1,554) 1,235
0
$61.579
$(11,884)
102.328
5,851 12
(5,874) 4.490
(1.199)
$93,725
The accompanying notes are an integral part of this financial statement 17
TOWN OF SIMMESPORT. LOUISIANA STATEMENT OF NET POSITION
FIDUCIARY FUNDS JUNE 30,2013
Cash and cash equivalents $746 Due from other funds 14.598
TOTAL ASSETS $15.344
Accounts payable $15.344
TOTAL UABIUriES 1 15.344
NET POSITION $0
The accompanying notes are an Integral part of this financial statement. 18
TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS
JUNE 30,2013
INTRODUCTION
The Town of Slmmesport (Town) was incorporated in 1925, under the provisions of the Lawrason Act; the Town began operating under a Mayor-Council form of government.
The accounting and reporting policies of the Town of Slmmesport confoim to generally accepted accounting principles as applicable to govemments. Such accounting and reporting procedures also conform to the requirements of Louisiana Revised Statutes 24:517 and to the industry audit guide, Audits of State and Local Govemmental Units.
Financial Reporting Entity. Govemment Accounting Standards Board Statement (GASB) 14 established criteria for determining which component units should be considered part of the Town of Slmmesport, Louisiana 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 financial accountability. These criteria include:
1. Appointing a voting majority of an organization's goveming body, and; a. The ability of the Town to impose its will on that organization and/or b. The potential for the organization to provide specific financial benefits to or Impose
specific financial burdens on the Town. 2. Organizations, to which the Town does not appoint a voting majority, but are fiscally
dependent on the Town. 3. Organizations for which the reporting entity financial statements would be misleading if data
of the organization is not included because of the nature of significance of the relationship.
Based upon the application of the foregoing criteria, the volunteer fire department as a governmental organization Is not considered a part of the Town and Is thus excluded from the accompanying financial statements. This organization Is staffed by volunteers and although the Town may provide facilities and some of Its financing, no control is exercised over its operations. These financial Include only expenditures paid or incurred directly by the Town.
N0TE1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES
A. Implementation of New Accounting Standards.
In June 2011, the GASB issued Statement No. 63. Financial Repgrting gf Deferred Outflgws of Resources, DefenBd Inflows gf Reseurces, and Net Position. GASB 63 provides guidance fbr reporting defenBd outflows of resources, deferred inflows of resources, and net position in a statement of financial position and related disclosures. The statement of net assets is renamed the statement gf net position and includes four components: assets, deferred outflows of resources, liabilities and deferred inflows of resources. The Town adopted GASB 63 for the fiscal year ended June 30,2013.
in accordance with GASB 34, Basic Financial Statements - and Management's Discussion and Analysis --for State and Local Govemments, the fellowlng statements are presented which differ from the manner In which the tcwn reccrds transacticns and presents financial infcrmatign.
Management's Discussion and Analysis ~ requires the financial statements be acccmpanled by a nan^tive intrgducticn and analytical overview of the Town's financial activities in the fonn of management's discussion and analysis (MD&A). This analysis is similar to the analysis previded in the annual reports of private-sector organizations.
19
TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES fContlnued)
Govemment-Wlde Financial Statements-The repgrting mgdel includes financial statements prepared using full accmal accounting for all the Town's activities. This approach includes not just cunent assets and liabilities, but also capital and other long-term assets as well as long-term liabilities. Accrual accounting also reports all of tiie revenues and costs of providing services each year, not just those received or paid In the current year or soon thereafter. Govemment-wide financial statements including the fciigwing:
Sfafemenf of Net Posif/gn-The statement gf net position Is designed to display the financial position of the Primary Govemment (govemmental and business-type activities). The Town reports capital assets In the govemment-wide statement of net assets and reports depreciation expense-the cost of "using up" capital assets-in the statement of activities. The net position of the Town is broken down into three categories-1) invested in capital assets, net of related debt; 2) restricted; and 3) unrestricted.
Statement of Actlvitles-The statement of activities reports expenses and revenues in a format that focuses on the cost of each of the Town's functlcns. The expense gf individual functicns is ccmpared tg the revenue generated directiy by the functicn. Acccrdingly, the Town had reccrded capital assets and certain other long-term assets and liabilities in the statement of net assets and has reported all revenues and tile cost of prgvlding services under the accrual basis of accounting in the statement of activities.
B. Basic Financial Statements.
Basic financial statements consist of the following:
• Government-wide financial statements.
• Fund financial statements, and
• Nctes to the basic financial statements. The ggvemment-wide financial statements ccnslst gf the statement of net position and the statement of activities and report information on all gf the nonfiduclary activities of the Primary Govemment and its component units. As a general rule, the effect of interfund activity has been eliminated from the govemment-wide financial statements. All intemal balances in the statement of net pgsition have been eliminated, with the exception of those representing balances between the govemmental activities and the t)usiness-type activities, which are presented as intemal balances and eliminated in the total government column. In the statement of activities, transactions between govemmental and business-type activities have not been eliminated.
Both of the govemment-wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovemmental revenues (govemmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Town include general govemment. public safety (police, fire and city court), streets and bridges, health and sanitation and public improvements. The business-type activities of the Town Include water, wastewater and gas operations.
20
TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES fContlnued^
The statement of activities demonsb^tes ttie degree to which the direct and indirect expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or activity. Program revenues include: 1) charges to customers or applicants who purchase, use, or directiy benefit from goods, services, or privileges provided by a given function or activity, and 2) grants and contributions, including special assessments that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate fund financial statements are provided for govemmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the govemment-wide financial statements. Major individual govemmental funds and major Individual enterprise funds are reported as separate columns in the fund financial statements.
C. Measurement Focus. Basis gf Acccuntina and Financial Statement Presentation The govemment-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds and fiduciary funds financial statements. Revenues are recorded when eamed or, for property tax revenues, In the period fbr which levied. Expenses are recorded when a liability is incun^, regardless of the timing of related cash flows.
Govemmental funds financial statements are reported using the curent financial resources measurement focus and the modified-accruai basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are ccliectible within tiie current pericd gr sggn eneugh thereafter tg pay liabilities of the cun«nt period. The Tgwn In general ccnsiders revenues available if they are collected within 180 days after year-end, except fcr property taxes, which the Tgwn considers available if they are collected within 60 days after year-end. Grants and similar items are recognized as revenue as scon as all eligibility requirements have been met. Expenditures are recorded when the related fund liability is incunred, except fbr unmatured interest on general long-term debt which is recognized when due, and certain compensated absences and claims and judgments which are recognized when payment Is due.
For the govemmental funds financial statements, the Town consider all revenues susceptible to accrual and recognizes revenue if the accrual criteria are met. Specifically sales taxes, franchise taxes, licenses, interest, special assessments, charges for services, and other miscellaneous revenue are all considered to be susceptible to accrual and have been recognized as revenue when the qualifying expenditures have been incunBd and all other eligibility requirements have been met and are recorded at tiie time of receipt or eariier. if the susceptible to accrual criteria are met.
In some instances, the Govemment Accounting Standards Board requires a govemment to delay recognition of decreases In net position as expenditures until a future period. In other Instances, govemments are required to delay reccgnitign of Increases In net position as revenues until a future period. In these ciroumstances, defered outflows of resources and deferred inflows of resources result from delayed recognition of expenditures and revenues, respectively.
The accounts of the Town are organized on the basis gf funds. A fund is an independent fiscal and acccunting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonsti^tion compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent witii legal and managerial requirements.
21
TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)
N0TE1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued^
The Tcwn repgrts Uie fgligwing majgr ggvemmental funds: The General Fund is the municipality's primary fund. It accounts fgr all financial resources of the general government, except those required to be acccunted fgr in angther fund.
Special revenue funds are used tg acccunt fgr the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures fbr specific purposes.
Debt service funds are used to account for ttie accumulation of resources retained and used fbr ttie payment of principal. Interest, and related ccsts gn thgse Igng-term obligations recorded in ttie general Icng-term gbilgatigns acccunt group.
Capital projects funds are used tc acccunt fcr financial rescurces to be used fgr acquisition or construction of major capital facilities (other than those financed In the proprietary funds and trust funds).
The Town reports tiie following major proprietary funds: Utility funds are used to acccunt fcr gperatigns (a) where the Intent gf the ggveming body is tiiat tile costs (expenses, including depreciation) of providing gggds or services to the general public en a ccntinuing basis be financed cr reccvered primarily through users charges: or (b) where the goveming body has decided that periodic determination of revenues earned, expenses incun^, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Tgwn gf Slmmespgrts enterprise funds are the Water and Wastewater Utility Fund and the Gas Utility Fund.
Addltignaliy, the Tgwn repgrts the fgligwing fund types: Fiduciary funds, which cgnsist sglely gf Agency funds, acccunt fcr assets held by tiie Tgwn as a trustee er as an agent fbr indh lduais or other govemmental units. The only fiduciary fund type used by the Town is the Agency Fund type. Agency funds are custcdiai in nature and do not invglve measurement of results gf gperations. Such funds have no equity accounts since ail assets are due to Individuals or entities at some future time. The funds account for assets held by the Town in an agency capacity for individuals or other govemmental units.
Private-sector standards of accounting and financial reporting issued prior to December 1. 1989, generally are followed In both the govemment-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Gevernmental Acccunting Standards Beard. Govemments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to ttiis same limitation. The govemment has elected not to follow subsequent private-sector guidance.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection witii a proprietary fijnd's principal ongoing operations. The principal operating revenues of tiie Enterprise Funds are charges to customers fbr sales and services. Operating expenses for Enterprise Fund Includes the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting ttiis definition are reported as non-operating revenues and expenses.
When botii resb'lcted and unresblcted resources are available for use, It is the Town's policy to use restricted resources first, then unrestricted resources as they are needed.
22
TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)
N0TE1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued^
D. Budgets and Budoetarv Accounting. The Town fgilgws ttiese procedures In establishing ttie budgetary data refiected in ttiese financial statements:
1. The Mayor and Town Clerk prepare a proposed budget and submit it to ttie Board of Aldermen not later than fifteen days prior to the beginning of each fiscal year.
2. A notice Is published and the public Is notified tiiat 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 fbr ttie hearing.
4. After the holding of tine public hearing and completion of all action necessary to finalize and implement the budget, the budget is adopted through passage of a resolution prior to the commencement gf ttie fiscal year fgr which ttie budget is being adgpted.
5. Budgetary amendments invglving Uie transfer gf funds fix)m gne department, program of function to anottier or Involving Increases in expenditures resulting from revenues exceeding amounts estimated require the approval of the Board of Aidennen.
6. Ail budgetary appropriations lapse at the end of each fiscal year.
Budgets are adopted on a basis consistent witti accounting principles generally accepted In ttie United States of America and are used as a management control device. Annual budgets are adopted for ttie General Fund, Sales Tax, Debt Service, Capital Projects Funds (if any) and ttie Enterprise Funds. The Town maintains budgetary controls to ensure compliance with legal provisions embodied in ttie appropriated budget approved by ttie Mayor and Board of Aidennen. The level gf budgetary central (ttiat is, the level at which expenditures cannot legally exceed ttie appropriated amcunt) for ttie operating budget is within a fund. Budgeted amounts presented are as originally adopted and as furttier amended by the Board of Aldermen.
E. Depgslts and investments. The Town's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term Investments with original maturities of ttiree months or less from ttie date of acquisition. State law and the Town's investment policy allow the Town to invest in collateralized certificates of deposits, govemment backed securities, commercial paper, ttie state sponsored investment pod. and mutual funds consisting solely of govemment backed securities. Cash equivalents include amounts in time deposits and those investments with original maturities of 90 days or less. Under state law. the Town may deposit funds in demand deposits, interest-bearing demand deposits, money market accounts, or time deposits witti state banks organized under Louisiana law and natignal banks having ttieir principal gfficers in Louisiana. These are classified as investments if ttieir original maturities exceed 90 days; however, if ttie original maturities are 90 days or less, they are classified as cash equivalents. Investments are stated at cost, which approximates maricet.
F. Cash Flow Presentation. For ttie purpose of the statement of cash flows, the Enterprise Funds (Water & Sewer System Utility Fund and Gas Utility Fund) ccnslder ait highly liquid Investments (including restricted assets) witti a matijrity gf three months or less when purchased to be cash equivalents.
G. Bad Debts. Uncollectible amounts due for ad valorem taxes and customers' utility receivables are recognized as bad debts at the time Infcrmatign beccmes available which weuld Indicate ttie unccllectibility gf the particular receivable. Nc allowance for uncollectible amounts was made due to ttie immateriality at June 30. 2013.
23
TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)
N0TE1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES fContlnuedl
H. Due to and Due from Other funds Interfund receivables and payables arise fi^m Interfund ti^nsactions and are recorded by all funds affected in the period in which transactions are executed.
I. Long-Term Debt in ttie govemment-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and ottier long-tenn obligations are reported as liabilities in the applicable govemmental activities, business-type activities, or proprietary fund type statement of net assets. Long-Term obligations of ttie Tgwn consisted of a 2004 Sales Tax Bond Issue, and two capital leases at June 30.2013.
J. Accumulated Unpaid Vacation and Otiier Emnlovee Benefits. Town employees are eligible for vacation or sick leave in accordance with the Town's Employee Handbook & Policy Manual adopted in December 2009. The policy does not allow for accumulation of vacation If not used in the year granted. Sick leave Is lost upon separation from emplgyment ttierefore there are no accumulations gf such absences tc be accrued as a liability in these financial statements. It is the Town's policy to recognize the costs of compensated absences when actually paid to employees.
At June 30, 2013. vested leave benefits have not been accrued as required by GASB Statement No. 16 "Accounting for Compensated Absences", due tc immateriality.
K. Capital Assets Under GASB Statement Ng. 34, ail capital assets, whether cwned by ggvemmental activities cr business-type activities are recorded and depreciated in ttie gcvemment-wide financial statements. No long-term capital assets or depreciation are shown in ttie govemmental fijnds financial statements.
Capital assets, which Include property, plant, equipment, and Infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the govemment-wide financial statements. Capital assets are capitalized at historical ccst gr estimated ccst if historical cost is not available. Donated assets are recorded as capital assets at their estimated fair maricet value at ttie date cf dgnatign.
The ccst gf ngrmal maintenance and repairs ttiat dc not add to the value of the asset or materially extend assets lives are not capitalized.
Major gutlays fgr capital assets and improvements are capitalized as projects are ccnstructed. Interest Incun^ during the ccnstructicn phase gf capital assets cf business-type activities is included as part gf the capitalized value gf the assets ccnstiticted
All capital assets, ottier ttian land, are depreciated using the straight-line method over ttie following useful lives: Years
Land Improvements (Infrastructure) 10-50 Building and building improvements 20 - 50 Service vehicles and moveable equipment 7-15 Heavy equipment 10 - 20 Office fumiture and fixtures 5*10
The proprietary funds are accounted for on a cost of service or 'capital maintenance" measurement focus, and alt assets and all liabilities (whettier cunent or noncurrent) associated with its activity are included on its balance sheet.
24
TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)
N0TE1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES fContinuedl
Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense against operations. Depreciation has been provided over the estimated useful lives using the sti^ight-llne method over the following useful lives:
Water and Natural Gas Sewer System gystOT
Water wells 40 Lines and meters 40 33 Pumps, Mot(m and Compressors 40 33 Service Vehkdes and Moveable Equip 5 5 Office Fumiture & Fbctures 5 5
All fixed assets are stated at historical cost (cash plus trade-in allowances, if applicable). Donated fixed assets, if any, are stated at their estimated fair value on the date donated.
L. Fund Eouitvof Fund Financial Statements
The town adopted ttie provisions of GASB 54 Fund Balance Reporting and Govemmental Fund Type Definitions for ttie year ended June 30, 2013. GASB 54 requires the fund balance amounts to be reported within ttie fund balance categories as follows:
Noivspendable - Fund balance that is not in spendable form or is legally or contractually required to be maintained intact This category Includes items that are not easily converted to cash such as inventories or prepaid items. Restricted - Fund balance ttiat can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. Committed - Fund balance that can only be used for specific purposes determined by ttie Town's highest level of decision making auttiority. Committed amounts cannot be used for any other purpose unless the Board removes or changes the specified use by taking the same type of action it employed to previously commit ttie funds. Committed fund balance is the result of either a policy of the Town or motions passed at a Town meeting committing the funds. Assigned - Fund balance ttiat Is constrained by the Town's intent to be used fbr specific purposes, but are neither restricted nor committed. Intent should be expressed by the Town. Unassigned - Fund balance that Is the residual classification for ttie general fund.
M. Estimates The preparation of the finandal statements in conformity with accounting principles generally accepted In ttie United States of America require management tg make estimates and assumptiens that affect ttie reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of support and expenses during the reporting period. Actual results could differ from those estimates.
NOTE 2. CASH AND CASH EQUIVALENTS
Under state law, the Town may deposit fijnds within a fiscal agent bank organized under the laws of the State of Louisiana, the laws of any ottier state in the Union, or the laws of ttie United States. The Town may invest In certificates and time deposits of ttie state banks grganized under Lguisiana law and natignal banks having principal cffices in Lguisiana. At June 30, 2013, the Tgwn had cash and cash equivalents (bggk balance) totaling $243,916 as follows:
Demand deposits $ 213,675 Time deposits 30.241
Total S 243.916
25
TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)
NOTE 2. CASH AND CASH EQUIVALENTS (Continued^
Custodial credit risk for deposits is the risk that in the event of the failure gf a depgsitory financial institution, the Town's deposits may not be recovered cr will ngt be able tg recover ccilateral securities that are in the possessicn gf an gutside party. These depgslts are stated at cost, which approximates market. Under state law, these deposits (or the resulting bank balance) must be secured by federal deposit insurance or similar federal security or the pledge of securities owned by the fiscal agent bank. The maricet value of ttie pledged securities plus the federal deposit insurance must at alt times equal the amount on deposit witti ttie fiscal agenL These securities are held In ttie name Town or the pledging fiscal agent bank in a holding or custodial bank ttiat is mutually acceptable to both parties.
Deposit balances (bank balances) at June 30.2013, are secured as follows:
Federal deposit insurance $ 263,183 Pledged securities i
Total $283,183
As of June 30,2013, the Town's total bank balances were fully insured by Federal Deposit Insurance.
NOTE 3. INVESTMENTS
At June 30. 2013, the Town held investments totaling $30,241 in 180 day certificates of deposit. These investinents are stated at cost, which approximate maricet, and are secured from risk by federal deposit Insurance (see note 2).
NOTE 4. RECEIVABLES
Receivables totaling $31,914 in the general fund consisted of ttie following at June 30,2013:
Other receivables Franchise fees $ 20,890 Ad Valorem Taxes 706
Total $ 21.596
Due from other govemments Video Poker Revenue $ 6,963 Casino Gaming Revenue 2,049 Beer Tax 1,307
Total $ 10.316
Sales tax collections receivable in ttie amount of $36,224 are reflected In the sales tax fiind.
26
TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)
NOTE 4. RECEIVABLES (Continued^
In the enterprise fund unbilled utility receivables were immaterial at June 30, 2013. Billed receivables balances at June 30,2013, consisted of ttie following:
UtiHtyBiHinos Current billings Over 30 days
Water and Sewer Svstem
$ 34.726 4.879
$ 39.605
Natural Gas 5y9tem Totals
$ 10,372 $ 45.098 2,870 7,749
$ 13,242 $ 52.847
NOTE 5. RESTRICTED ASSETS - PROPRIETARY FUND TYPE
Restricted assets were applicable to the following at June 30,2013:
Customer Meter Deposits S U « ^
Customer Meter Deposits exceeded the amount held in cash by $10,521 in the Natural Gas Fund.
NOTE a INTERFUND RECEIVABLES. PAYABLES
The following is a summary of interfund receivable and payable batances at June 30.2013: Interfund Interfund
E General Fund Sales Tax Fund Enterprise Funds Agency Fund
Totals
NOTE 7. CHANGES IN AGENCY FUND
The following is a summary of changes In assets and liabilities of the Agency Fund for the year ended June 30,2013:
Balance Balance Assets 7/1/2012 Additions Deletions 6/30/2013
Cash $ 3,365 $ 586,494 $ 589,113 $ 746 Due from ottier funds 34.850 594.011 614.263 14.598
$ 38.215 $ 1.180.505 $ 1.203.376 $ 15.344 • • ^ • ^ ^ ^ • • ^ s ^ ^ B ^ ^ * ^ ^ ^ M a ^ ^ H ^ ^ ^ ^ ^ ^ ^ ^ ^ a ^ ^ b ^ i ^ ^ ^ ^ a a i R « s B ^ ^ a : a s n A ^ ^ i ^
Liabilities Payables $ 38,215 $ 634,546 $ 657,418 $ 15,344 Due to ottier funds . . . .
Recelvablea $
-243.119
14.598 $ 257.717
$
1
Payables 247,906
9,561 250 .
257.717
38.215 $ 634.546 $ 657,418 $ 15.344
27
TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS. (Continued)
NOTE 8. CAPITAL ASSETS Capital assets and depreciation activity as of and for ttie year ended June 30, 2013, are as follows:
Governmental activities
Capita) assets not being depredated:
Land
Capital assets t)elng deofeciated:
Building and improvements
Madilnery and equipment
Total capital assets being depreciated
Less accumulated depredation for
Building and improvements
Machinery and equipment
Total accumulated depredation
Total govemment assets
being depreciated, net
For the year ended June 30,2013, depredation expense was $92,760.
s
$
_L
$
±_
$
Balance ifUitnz
24,786
614,843
1,516,540
2,131,383
187,644
970,237
X1S7,881
973,502
$
,
J_
$
T
Additions
73,300
73,300
16,609
76,151
92,760
Deletions Balance
6/30/2013
24,786
614,843
1,589,840
2,204.683
204,253
1,046,388
1,250,641
954.042
Business-type acthrities:
Captial assets not being depredated:
Land
Construction In progress
Capital assets being depredated:
WatQ- system plant and equipment
Sevifer system plant and equipment
Gas system plant and equipment
Total capital assets being depreciated
Less accumulated depreciation for
Water syston plant and equipment
Sewer system plant and equipment
Gas system plant and equipment
Total accumulated depredation
Total Business-type assets being depredated, net
17,636
42,947
60,583 $
$ 1,267,871 $
2,273,658
1,028,763
$ 4,570,292 S
$ 1.165,751 $
981,217
837,395
1,585,929
For tiie year ended June 30,2013, depredation expense was $102,328.
17,982 $
60,453
23,892 _
$ 2,984.363 $ 102,327 $
17,636
42,947
60,583
1,267,871
2,273,658
1,028,763
4,570.291
1,183,733
1,041,670
861,287
3,086,690
1,483,601
28
Generel Obllflatlon
$ 115,000 -
37,000 $ 78,000
Revenue Bonds
$ 77.914 -
22.000 $ 55.914
Capital Leases
$ 10,504 73,330 23.057
$ 60.777
Total $ 203.418
73.330 82.057
$ 194.691
TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)
NOTE 9. CHANGES IN LONG-TERM DEBT
The following is a summary of long-term debt transactions of the Town for the year ended June 30,2013:
Payable at 6/30/2012 Add: New Debt Issued Less: Payments Made Payable at 6/30/2013
The Town had only one debt Issue payable at June 30, 2013, which is secured by excess general fund revenues and proceeds of the 1% sales tax as follows:
Outstanding General Obiioatlon Debt Balance
$36^000 - 2004 Sales Tax Bonds dated April 6.2004 (refunding of bonds dated March 13,1990), due in annual installments of $28,000 to $40,000 with Interest of 3.85%; matures March 1.2015 S yaooq
A total of $57,909 is available in the Debt Service Fund to sen/ice the General Obligation Debt
The annual requirements to amortize ail debt outstanding as of June 30, 2013, including interest payments of $4,543 are as follows:
Year Ending
2014 $ 41.003 2015 41.540
$ 82.543 Revenue Bonds Pavable
$236,000 - 2011 Sewer Revenue Bonds not yet fully funded as of June 30, 2013 Initial draws on total bonds approved for $236,000 S 55.914
As of June 30, 2013. the Town had a total of $16,206 in the Sinking Fund and $6,116 in the Reserve Fund. The bonds had not yet been fully funded; however, payments started in June 2013. The annual requirements to amortize the cunent balance outstanding as of June 30, 2013. including interest payments of $435 are as follows:
Year Ending Jwn^ 3q
2014 $ 2015 2016 2016
$
22.691 11,430 11,168 11.060 56.349
29
TOWN OF SIMMESPORT. LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)
NOTE 9. CHANGES IN LONG-TERM DEBT fContlnuec»
Capital Leases
The Town of Slmmesport entered into a lease agreement on September 12, 2012, as lessee for financing the acquisition of a two Police units fdr the Police Department in the General Fund. The lease agreement qualifies as a capital lease for accounting purposes (lease contains an option to purchase the leased property) and therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. The canning value of the assets under capital lease is $59,886 at June 30,2013.
The following is a schedule of the future minimum tease payments under this capital lease, and the present value of the net minimum lease payments at June 30,2013:
2014 $ 20,307 2015 20,307 2015 20.307 2017 5.077
65,998 Less: amount representing interest (5.221)
Present value of future lease payments $ 60,777
NOTE 10. AD VALOREM TAXES
For the year ended June 30, 2013, taxes of 4.98 mills were levied on property with assessed valuations totaling $5,010,120 and were dedicated as follows:
General Corporate 4.98
Total tax levied was $24,951 for the tax year ended June 30th. Taxes receivable at June 30, 2013, were $706.
Property taxes attach as an enforceable lien on property as of March 2nd of each year. Taxes are levied In November of each year and payable by March 1st of the year following. The Town bills and collects its own property taxes and they are recognized as revenues when levied to the extent that they result in cunent receivables. Property assessments are based on valuations made by the tax assessor of Avoyelles Parish.
NOTE 11. SALES TAX COLLECTION AGREEMENT
On June 5,1992, the Town of Slmmesport, Louisiana entered into an Intergovemmental agreement with the Avoyelles Parish School Boand fdr a one year period commencing on July 1,1992. whereby the School Board will collect the sales and use taxes, including Interest, penalties, fees and cost, levied by the Town of Slmmesport Louisiana under the Town's ordinances. The collection fee charged is a monthly fee of 1 1/2% of the gross tax revenues collections to the Town of Slmmesport Tax collections are remitted on a monthty basis no later than the 10th day of each month after reasonable and necessary cost and expenses of coiiectton in administration of the taxes have been deducted, including the collection fee. This agreement is renewed automatically each year.
30
TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)
NOTE 12. GENERAL OBUGATION SINKING FUND REQUIREMENTS
A. Under the terms of the $362,000 - 2004 Sales Tax Bond dated April 8, 2004, the Town is required to establish and maintain the following accounts for payment principal and interest on the Bond:
1. "Sales Tax Bonds, Series 2004, Sinking Fund" and to transfer thereto, on a monthly basis, an amount constituting 1/12th of the next maturing installment of principal and interest on ttte Bond. The balance in the sinidng fund as of June 30,2013, totaled $49,450.
2. "Sales Tax Bond, Series 2004, Reserve Fund" is to be maintained solely for the purpose of paying the principal of and interest on bonds payable from the Debt Service Fund as to which there would othenvise be default. The Reserve is required to be funded In an amount equal to the lesser of (I) 10% of the principal amount of the bonds and (11) the highest combined principal and interest requirements for any succeeding bond year on the bonds. The balance in the reserve fund as of June 30,2013, totaled $8,459.
For the period under audit, ail required transfers to the funds were met in all material respects since the combined balance of both the sinking and reserve fiinds was within the amounts required fbr the bond issue.
NOTE 13. RETIREMENT COMMITMENTS
Poltoe officers are eligible to participate in the Municipal and State Police Retirement System of Louisiana, a multiple-employer public employee retirement system. For the current year, however, no one in the police department chose to participate.
All employees of the Town are covered by the Social Security System.
NOTE 14. DEFERRED COMPENSATION PLAN
Beginning in January 1990 the Town elected to participate in the Louisiana Public Employees Defered Compensation Plan State of Louisiana, a component unit of the State of Louisiana. The plan offers its participants (eligible public employees) a defended compensation plan created in accordance with intemal Revenue Code Section 457. The plan permits them to defer a portion of their salary until future years. The deferred compensation Is not available to employees until terminatton, retirement, death, or unforeseeable emergency. Complete disclosures relating to the Plan are included in the separately issued audit report for the Plan, available from the Louisiana Legislative Auditor, Post Office Box 94397, Baton Rouge, Louisiana 70804-9397.
31
TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)
NOTE 15. FRANCHISE AGREEMENTS
The Town entered into franchise agreements with various public utility companies that provide services within the corporate limits of the Town. A summary of each such agreement follows:
1. CenturvTel (formeriv Central Louisiana Teieohone Comoanv^ - Effective July 1.2012 for a period of five (5) years. Franchise fee is based on four percent (4%) of gross revenues derived from exchange station sen/ices rendered within the city limits of the Town. Fees are payable quarteriy within thirty (30) days following the expiration of the quarter. As additional consideration the Town ts provided free of charge, four (4) local access lines.
2. Central Louisiana Electric Comoanv. Inc. - (CLECO) - Effective July 22, 2009 fbr a period of fifteen (15) years. Franchise fee Is based on four percent (4%) of the gross receipts firom sale and delivery of electric energy fbr residential and commercial purposes billed on commercial and residential rates within the limits of the Town. Fees are payable quarteriy within thirty (30) days of the end of the quarter. Other franchise provisions are as follows:
1. Franchise payments will be reduced in an amount equal to the sum of any new or increased taxes of any nature whatsoever levied by the municipality and payable by CLECO (except unifbmfi ad valorem taxes, based on property values). 2. CLECO will provide free electric service to the Town and reduced street light rates until July 2024. Thereafter, prevailing commercial rates shall apply and street lights rates will increase.
3. Cable or Video Franchise agreement - Effective November 6, 2010, the town adopted an ordinance requiring all persons or entities providing cable of video services to the citizens of Slmmesport to pay a franchise fee of four percent (4%) of the cable or video service provider's gross revenues derived from operations within the Slmmesport municipal limits.
NOTE 16. SUBSEQUENT EVENTS
Subsequent events were evaluated through November 26,2013, whk:h is the date the financial statements were available to be Issued. No material events have occured since June 30, 2013, that required recognition or disclosure In the financial statements other than as previously mentioned.
NOTE 17, LITIGATION
As of the date of this report, we have been advised by legal counsel that the town is not involved in any litigation and there is no material pending or threatened litigation, claims or assessments.
32
TOWN OF SIMMESPORT, LOUISIANA NOTES TO FINANCIAL STATEMENTS, (Continued)
NOTE 18. GOING CONCERN
The Town Incun^ excessive spending In the General Fund resulting in a cumulative deficit fund balance of $211,047 for the fiscal year ended June 30,2013. Although the Town's overall cash position increased by $74,129, which includes an increase in restricted cash held fbr customer security deposits by $15,011, the Town stili incuHBd deficit spending in the general fund of $98,177. Ail of the other funds of the Town operated with a surplus or profit for the fiscal year ended June 30, 2013. The deficit in the general fund is due largely to a decline in recuning revenue sources over the prior years.
Effective January 2013, the Mayor and Council approved the following actions to help reduce spending and reverse some of the financial impact of the cumulative overspending in the general fund:
• released two full-time employees • reduced the ofRce staff to a thirty-two hour wori( week • eliminated all overtime • initiated a reduction in employee benefits paid by the Town • approved the sale of commerolal property and Police units that are not needed by the Town to
generate revenue and reduce insurance costs • limited spending by tightening the purchase order approval process « appointed council members to committees to look into increasing occupational license fees and other
revenue sources • mandated a reduction in scheduling of Police Officers to minimize Police payroll expense and
encouraged the use of one patrol car per shift to reduce operating costs • eliminated ail festivals and Cliristmas parties being hosted by the Town • minimizing billing adjustments to utility bills and tightening the collection procedures to reduce the
amount of write-offs
The Town is continuing with the listed actions above and the Mayor and Council members have taken a more active role in the overall adminlstratton of the Town and overseeing the daily operations in an attempt to overcome this uncertain financial situation.
33
REQUIRED SUPPLEMENTAL INFORMATION (PART II)
34
TOWN OF SIMMESPORT. LOUISIANA BUDGETARY COMPARISON SCHEDULE
GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2013
REVENUES Taxes Franchise fees Ucenses and penults Intergovemmental Rnes and forfeits Miscellaneous Rental Income Grants and entitlements
TOTAL REVENUES
Pffl^PITtiR^ General govemment Police Rre Streets and drainage Debt sen/ice Capital outiay
TOTAL EXPENOrrURES
Deficiency of revenues over expenditures
OTHER FINANCING SOURCEa itlSES^ Operating transfers in Operating transfers out Proceeds from capital lease
TOTAL OTHER FINANCING SOURCES (USE
Excess (deficiency} of revenues and other over expenditures and other uses
FUND BALANCES AT BEGINNINO OF YEAR
FUND BALANCES AT END OF YEAR
Original Budget
$32,200 129.800 86,150
103.700 77,400 12.950 5,500
0
Final Budget
$32,200 129.800 81.460 91.700 77,400 25,950 4.056
19.264
Actual
$33,069 88.709 74,858 81,239 49.459 10,591 4.396
21.901
Varfance withniral
Budget Positive
(NegaUve)
$869 (41.091) (6.S92)
(10.461) (27.041) (15,359)
339 2.637
447.700
650.150
(202.4501
250,000 0 0_
250.000
»V7,550
461.820
762.400
f300.5601
250.000 0
73.300
323.300
m j ^
364.221
768.451
(404,228)
232,752 0
73,300
306.052
(98,177)
f 112.8701
$(211,047)
(97.599)
203,750 266,650
260 146,600 27,700
5.000
238,200 285.800
4.850 132,550 27,700 73.30P
223,063 297,587
5.925 142.524 26.050 73.3P0
15.137 (11.767)
(1.075) (9.974) 1,650
0
(6.051)
(103.648)
0 (17.248)
0 Q
(17.248)
$(120.8971
The accompanying notes are an Integral part of this financial statement 35
TOWN OF SIMMESPORT. LOUISIANA BUDGETARY COMPARISON SCHEDULE
SALES TAX FUND FOR THE YEAR ENDED JUNE 30. 2013
Taxes
Miscellaneous
TOTAL REVENUES
EXPENPrrURES
General govemment
TOTAL E)(PENDrTURES Excess (deficiency) of revenues over expenditures
QTH^R FiwAWPiNQ spyRg^ m m Operating transfisrs In Operating transfers out
TOTAL OTHER HNANCING SOURCES (USES)
Excess (deficiency) of revenues over expenditures and other sources (uses)
FUND BALANCES AT BEGINNING OF YEAR
FUND BALANCES AT END OF YEAR
Original Budget
$325,000 50
325.050
4.400
4.400
320.650
0 (316,000)
(316.000)
$4,650
Final Budget
$325,000 50
325.050 .
4.400
4.400
320.6J2. .
0 (316.000)
(316,000) ,
K65a
Actual
$342,585 26
342.611
8.944
8 .W
333.667
0 (292.073)
f292.0731
41,593
26.378
$67,972
Variance with Final
Budget Positive
(Negative)
$17,685 (24)
17.561
(4.5441
(4.544)
13.017
0 23.927
23.927
$36,643
The accompanylns notes are an Integral part of this financial statement 36
TOWN OF SIMMESPORT, LOUISIANA NOTES TO BUDGETARY COMPARISON SCHEDULES
For the Year Ended June 30,2013
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America and are used as a management control device. Annual budgets are adopted for the General Fund. Sales Tax Fund. Debt Service Funds, Capital Projects Funds (ff any) and the Enterprise Funds. The Town maintains budgetary controls to ensure compliance with legal provisions embodied in the appropriated budget approved by the Mayor and Board of Aldermen. The level of budgetary control (that is. the level at which expenditures cannot legally exceed the appropriated amount) for the operating budget is within a fund. Budgeted amounts presented are as originally adopted. There were no amendments for the cunent fiscal year. Budgetary appropriation lapse and the end of each fiscal year and must be re-approprlated for the following year in order to be expended.
37
OTHER SUPPLEMENTAL INFORMATION
38
TOWN OF SIMMESPORT, LOUISIANA GENERAL FUND
STATEMENT OF FUNCTIONAL EXPENDITURES DETAIL BUDGET (GAAP BASIS) AND ACTUAL
YEAR ENDED JUNE 30, 2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30,2012
Q^^B#,qQYBRHWSMT Salaries Payroll taxes Employee t>enefits Legal and auditing Insurance Assessor fees Miscellaneous OfRce supplies and postage Publications and printing Dues and sutiscripttons Town haD expense Telephone expense Dnig testing expense (>)mmunlty center expenses Travel Bank charges Election cost Repairs and maintenance Parte expenses Qvic center expense Advertising Expense Festival expense Tourist center expense Material and supplies Mardi Gras expenses Coroner's Expense Engineering Fees Council on Aging Penalty and Rnes Festival expense
Entertainment - Slmmesport cares Repairs & maintenance - fsstiv Perty expense - Slmmesport cares Pageant expense - ftetlval Advertising - festival Dues & suliscrtptlons - festival Materials & supplies - festival Security • festival expense Donations to Other Org - SAYA Dues & Subscriptions - SAYA Event expense - SAYA Fuel-SAYA Meals & entertainment - SAYA Miscellaneous-SAYA Penalties-SAYA Postage-SAYA Sales tax expense-SAYA Supplies-SAYA Travel-SAYA Capital Outiay-SAYA
TOTAL GENERAL GOVERNMENT
Final Budget
$84,700 7,500
0 21.200 17.000
1.800 500
7,800 1.300
900 10,000 9.300 1.500
0 5.300
0 0
9,850 11.700 9.000
100 0 0
800 250
2.700 0
6.800 0 0 0 0 0 0 0 0 0 0 0 0
20.oon 0 0 0 0 0 0 0 0 0 Q .
230.000 .
{CONTINUED) 39
Actual
$80,117 6,065 7.340
18,696 19,363
1.475 3.495 2.795 2.196
859 7,418
10,709 758
9,484 4.731
30 222
16,685 10.405
0 65 0
347 0 0 0 0
3.201 1.833
0 0 0
792 6.503
0 505
0 0 0
275 109
5.940 0
231 30 12 27
120 212
0 0
223.063
Variance-Favorable
$4,583 1.435
(7.340) 2.504
(2.363) 325
(2.995) 5.005 (896)
41 2.582
(1,409) 742
(9,484) 569 (30)
(222) (6.835) 1.295 9.000
15 0
(347) 800 250
2.700 0
3.599 (1.833)
0 0 0
(792) (6.503)
0 (505)
0 0 0
(275) 19,891 (5.940)
0 (231)
(30) (12) (27)
(120) (212)
0 0
6.937
June 30. 2012
Actual
93.301 7,066 5.994
21.524 17.244
1,477 5.651 6.922 1,471
732 9,563 9,481 1,879 7,990
15,565 284
0 6,035 5,330
0 85 29
387 2,012
404 2,350 2.500 6.630 3.457 7.041 3.225
125 0
724 1.750
320 674
3.065 1.477
236 23
12.832 11 20 42 11 44 63
1.997 80
4.0QQ
273.125
TOWN OF SIMMESPORT. LOUISIANA GENERAL FUND
STATEMENT OF FUNCTIONAL EXPENDITURES DETAIL BUDGET (GAAP BASIS) AND ACTUAL
YEAR ENDED JUNE 30,2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30,2012
POLICE Salaries Payroll taxes Employee t)enefit3 Insurance Miscellaneous Telephone expense Travel Expense Witness Fee Magistrate fees Prisoner rations Medical expenses Police uniforms Police academy Material and supplies Repairs & Maintenance Police supplies Patrol car expenses Patrol car- fuel Crisis Response team
TOTAL POUCE
3TR^RT9AWPPBAIWAQR Salaries Payroll taxes Emptovee ben^its Insurance Miscellaneous Telephone Utilities Repairs and maintenance Pari( expenses Medical Expenses TrBCtor expense Tractor expense- fuel FueVMower-weedeaters Uniforms Vapor lights Material and supplies Truck expenses Trucic expense- fuel
TOTAL STREETS AND DRAINAGE
Final Budget
209.000 15.000
0 16.000
0 2.000
0 1.800
600 1.000
0 2,000 1,600
0 800
11.000 25.000
0 0
285.800
35.000 3.000
0 3.100
250 1.450
900 6.800
50 50
10,900 0
150 200
36.000 23.200 11.500
D.
132.550
Actual
198.385 16,013 7.340
23,410 4.864 3,401 4.068 1,650
0 948 80
1.418 1,000
53 0
6,280 2.891
24.733 (947)
297.587.
34.044 2.743 8.416 2.229
651 1.265
923 7.167
0 0
7,710 3.569
494 158
38.176 22.884 3.641 B.253.
142.524.
Variance -Favorable
(Unfavorable)
10,615 (1,013) (7.340) (7,410) (4.864) (1.401) (4.068)
ISO 600 52
(80) 582 600 (53) 800
2,720 22.109
(24,733) 947
(11.787)
956 257
(8.416) 871
(601) 185 (231
(367) 50 50
3.190 (3.569)
(344) 42
(2.176) 316
7.859 « 9 M 1
(9.974)
June 30. 2012
Actual
188.135 15.233 9,996
27.888 280
1.989 235
1.450 500
3,810 0
1.610 0
15 660
10.456 11.162 24.176
0
297.575,
42.534 2.883
13.335 6.061
127 675
1.024 6.806
38 44
7,361 1.173
199 0
40.952 19.793 2.448
1R7fi7
162.210
(CONTINUED) 40
TOWN OF SIMMESPORT, LOUISIANA GENERAL FUND
STATEMENT OF FUNCTIONAL EXPENDITURES DETAIL BUDGET (GAAP BASIS) AND ACTUAL
YEAR ENDED JUNE 30, 2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30,2012
FIRE Miscelianeous Appropriations VFD Telephone expense Utilities
TOTAL FIRE
Final Budget
250 0 0
4.600
4.e9Q
Actual
0 1.000 1.735 3.190
5,925
Variance -Favorable
(Unfavorable)
250 (1.000) (1.735) 1.410
(1.0751
June 30, 2012
Actual
0 0
1,115 1.350
2.485
DEBT SERVICE Lease payments 27.700 26.050 AA 20.219
TOTAL DEBT SERVICE 27.700 26.050 20.219
CAPITAL OUTUY Police Streets and sanitation General govemment
73,300 0
8.200
73.300 0
. 0
0 0
8.200
0 3,200
110.468
TOTAL CAPITAL OUTLAY 81.500 73.300 8.200 113.688
TOTAL EXPENDfTURES S762.400 8768.449 s(e.osoi $869.282
(CONCLUDED) 41
TOWN OF SIMMESPORT, LOUISIANA ENTERPRISE FUND
STATEMENT OF FUNCTIONAL EXPENDITURES DETAIL BUDGET (GAAP BASIS) AND ACTUAL
YEAR ENDED JUNE 3D, 2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30. 2012
WATPRSY9TBM Salaries - Water Payroll tax expense Employee t>enef)ts Insurance Mlscenaneous Telephone expense Utilities Repairs and maintenance Lease payments Office supplies and postage Dues and subscriptions Capital projects Travel expense Material and supplies Truck expenses Truck &q3ense- Fuel Chemicals Depredation Interest Expense Bad debt expense Bank charges Interest expense
TOTAL WATER SYSTEM
g^WPR^YSTPM Salaries - Sewer Payroll taxes Employee benefits Insurance Miscellaneous Utilities Repairs and maintenance Telephone Dues & Subscriptions Construction Cost Engineering Fees Materia] and supplies Truck expenses Truck Expense- Fuel Chemicals Depreciation Bad debt expense
TOTAL SEWER SYSTEM
Final Budget
$70,000 6.000
0 6.nnn
400 300
17,500 3.000
0 500 300
2.500 500
6.230 0
5,000 3,000
18.000 0
500 0
500
142.230
67.500 5,500
0 800 fiOO
31.000 12,000
500 0 0 0
4.500 0
1.500 4.000
60.000 600
188.300
Actual
$67,516 5.029 7,340
14,277 1.544
469 18,577 3.669 1.204
0 175
0 511
10.354 166
3,365 3,646
17.982 0 0
1,088 979
157.893
64,628 4.650 7,340 5,052 1.478
30,538 11.550
239 250
49.454 8.025 1,978
0 1.511 4,900
60.200 0
.2?1,®3
Variance-Favorable
(Unfavorable)
$2,484 971
(7.340) [Burn (1.144)
(169) (1.077)
(669) (1.204)
500 125
2.500 (11)
(2.124) (168)
1.635 (646)
18 0
500 (1.088)
(479)
(15.6631
2.872 650
(7,340) (4.252)
(978) 462 450 261
(250) (49.454)
(8,025) 2,522
0 (11)
(900) (200) 500
(63.6931
June 30, 2012
Actual
68.469 5,031 7,028
10.679 0
297 17,769 19.927
969 373 600
0 480
19.409 575
3,756 3,044
17.982 539
0 92 0
177.017
64.754 4.749
11,988 5.879
0 29.315 21,548
496 495
81.131 19.475 6,526
42 1,312 6,455
60.788 0
314.953
(CONTINUED) 42
TOWN OF SIMMESPORT, LOUISIANA ENTERPRISE FUND
STATEMENT OF FUNCTIONAL EXPENDITURES DETAIL BUDGET (GAAP BASIS) AND ACTUAL
YEAR ENDED JUNE 30,2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30,2012
G ^ N E f ^ AND ADMINISTRATIVR Salaries Payroll taxes Employee benefits Legal and auditing Insurance Miscellaneous Office supplies and postage Bank service charges Penalties Lease payments Dues and subscriptions Material and supplies Repairs and maintenance
TOTAL GENERAL AND ADMINISTRATIVE
TOTAL GENERAL AND AOIMINtSTRATlVE WATER AND SEWER
Final Budget
25.000 1,800
0 4,500
0 100
1,800 150
0 1.800
200 0 0
35.350
$385.680
Actual
24.810 1,905 3,146 4,815 1.592
0 1.795
216 568 576
0 1,216
m 41.135
$451,022
Variance -Favorable
(Unfavorable)
190 (105)
(3,148) (316)
(1.592) 100
5 (66)
(568) 1,224
200 (1.216)
(4961
(5.7851
$(85.142)
June 30, 2012
Actual
35.395 2,575 5.826 4,549 2.626
0 2,269
184 0
1,831 125
1,144
367 56.891
$548,861
(CONCLUDED) 43
TOWN OF SIMMESPORT, LOUISIANA ENTERPRISE FUND
STATEMENT OF FUNCTIONAL EXPENDITURES DETAIL BUDGET (GAAP BASIS) AND ACTUAL
YEAR ENDED JUNE 30,2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30,2012
NATURAL GAS SYSTEM Salaries Payroll taxes Employee t>enefits Insurance Miscellaneous impairs and maintenance Lease payments Telephone Utilities Office supplies Medical Expense Matertal and supplies Truck expense Truck expense - fuel Depredation Gas purchase
TOTAL NATURAL GAS SYSTEM
GENERAL AND ADMINISTRATIVE Salaries Payroll taxes Employee benefits Legal and auditing Insurance Miscellaneous Office supplies and postage Lease payment Dues and subscriptions Bank charges Material and supplies Repairs and maintenance Capital outiay
TOTAL GENERAL AND ADMINISTRATIVE
TOTAL GENERAL AND ADMINISTRATIVE NATURAL GAS
Final Budget
$30,000 3.000
0 11.000
1.000 6,000 2.500 2,000
0 500
0 5.000
0 6,500
26,000 80.000
173,afi.
18.000 1,500
0 5.000
0 0
2.500 1.600
0 100
0 0
M7D0
$207.200
Actual
$26,145 1.943 7,340
15.370 598
6.600 1.685
843 1.030
0 410
6.896 987
6,508 24.146 73.423
172.924
17,608 1.350 7,340 4.815 1.274
515 1.682 1.773
0 65 0
496 0
36820
Variance-Favorable
$3,855 1.057
(7.340) (4.370)
402 (600) 615
1,157 (1,030)
500 (410) (696) (987)
(8) 1,854 6.577
?76
392 150
(7,340) 185
(1.274) (515) 618
(173) 0
35 0
(496) S.OQH
(3230)
$j2^644)
June 30, 2012
Actual
32,745 2.432 7.003
23,180 0
13.652 2,973
738 1.330
481 0
13.542 865
6,130 24.389 70.449
199.908
30.906 2.244 7.026 4.549
204 0
2.269 1.831
25 46
1.144 387
0
50.611
$250.519
44
TOWN OF SIMMESPORT, LOUISIANA COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2013
ASSETS
Cash and Cash Equivalents
TOTAL ASSETS
Capttal Projects
Fund
$1
1
2004 Sales Tax
Bonds
$57,909
57.909
Totals Non-M^tor
Govemmental Funds
$57,910
57.910
LIABILITIES AND FUND BALANCES Accounts payable Due to other funds
TOTAL UABILmES
FUND BALANCES Restricted fbr debt s^vice
TOTAL UABILTTIES AND FUND BALANCES $1
57.909
$57,909
57.910
$57,910
45
TOWN OF SIMMESPORT, LOUISIANA COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -NON-MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2013
REVENUES Grant revenue Interest Income
TOTAL REVENUES
EXPENDITURES
Debt service Principal retirement Interest
Capital outiay
TOTAL EXPENDITURES
Excess (deficiency) of
revenues over expenditures
OTHER FINANCING SOURCES (USES! Operating transfers In (out)
Sales tax fund Sales tax fund
TOTAL OTHER FINANCING SOURCES (USES)
Excess (deficiency) of revenues
over expenditures and other sources (uses)
FUND BALANCES AT BEGINNING OF YEAR
FUND BALANCES AT END OF YEAR
CspKal Projects
Fund
$19,713
0
19.719.
0 0
19,713.
19,713
0
0 0
0
0
1
$1
2004 Sales Tax
Bonds
$0
11
11
37.000 4.428
0
41.428
(41.416)
45,373 0
45.373.
3.957
53.952
$57,909
Total Non-Mqjor
Govemmental Funds
$19,713 11
19.7?4.
37,000 4,428
19.71?
61.141
(41.4161
45,373 0
45.373
3.957
53,953
$57.910
46
TOWN OF SIMMESPORT, LOUISIANA SCHEDULE OF COMPENSATION PAID TO ELECTED OFFICIALS
A detail of compensation paid to individual eiected officials for the year ended June 30,2013, follows:
Eric Rusk Myron Brown Manual M. Kirk Kenneth L. Marsh Ted P. Turner Charies Austin, Jr. Shennan R. Bell
Title Mayor Aiderman Alderman Alderman Alderman Alderman-at-large Aldemnan
Date Term Expires Decemt)er2016 December 2016 Decemt>er2013 December 2016 December 2016 December 2016 December 2016
YearEnded June 30. 2013 $ 13,125
5,250 2.850 4,950 5,250 5,250 2,250
47
OTHER REPORTS REQUIRED BY GOVERNMENTAL AUDITINQ STANDARDS
48
D^ 0 ^ Aloyaia C. Dueate, CPA, PC
I ^ f JoanS.Dwxae,CPA,PC UCOte & I nmnany HopeJ,Qagnam,CPA.PC Certified PubiieAecouniantar %/
IWPgpgNDEMT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO^fERNMENT AUDmNG STANDARDS
The Honorable Eric Rusk, Mayor And the Board of Aldermen
Town of Slmmesport, Louisiana
We have audited, in accordance with the auditing standards generally accepted In the United States of America and the standards applicable to financial statement audits contained in Govemment Auditing Standards Issued by the Comptroller General of the United States, the financial statements of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund iniformation of the Town of Slmmesport Louisiana, as of and for the year ended June 30. 2013, and the related notes to the financial statements, which collectively comprise the Town of Slmmesport, Louisiana's basic financial statements and have Issued our report thereon dated November 26,2013.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we conskJered the Town of Slmmesport, Louisiana's Intemal control over financial reporting (Intemal control) to determine the audit procedures that are appropriate in the circumstances fbr the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of SImmesporfs Intemal control. Accordingly, we do not express an opinion on the effectiveness of the Town's intemal control.
Our consideration of the intemal control was for the limited purpose described in the preceding paragraph . and was not designed to Identify all deficiencies in Intemal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described In the accompanying schedule of findings and questioned costs, we identified certain deficiencies in Intemal control that we consider to be material weaknesses.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and con^ct misstatements on a timely basis. A material weakness is a deficiency, or combination of deftolencles. in intemal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying schedule of findings and responses to be material weaknesses. These are indentified as 2013-05 and 2013-06.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We did not identify any deficiencies in intemal control that we believe to be significant defteiencles.
American institute^ • Mtntf^ • Soeiefy of Louisiana Certified PubUcAcoountantB Certified Publle Accountants
219 Sorih Washington • A»f Office Box 309 • Marksville, Louisiana 71351 • (318) 253-6501 • Fbx (318) 253-0721
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Town of Slmmesport, Louisiana's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the detemninatton of financial statement amounts. However, providing an opinton 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 Govemmenta/ Auditing Standards and which we described In the accompanying schedule of findings and responses as items 2013-01,2013-02,2013-03. and 20134)4.
Town of Slmmesport. Louisiana's Response to Findings
The Town of Slmmesport, Louisiana's response to the findings Identified In our audit Is described in the accompanying schedule of findings and responses. The Town of Slmmesport. Louisiana's response was not subjected to the auditing procedures applied In the audit of the financial statements and. acconjtngly. we express no opinion on it.
F>urpose of this Report
The purpose of this report is solely to describe the scope of our testing of Internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the ent l t /s intemal control or on compliance. This report is an integral part of an audit performed in accordance with Govemment Auditing Standards In conskjerlng the entity's Intemal control and compliance. Accordingly, this communication te not suitable for any other purpose.
In addition, this report is Intended fdr the information and use of the Mayor and Board of Aldermen and management of the Town of Slmmesport, Louisiana, federal awarding agencies, and for filing with the Legislative Auditor of the State of Louisiana, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and Its distribution Is not limited. Under Louisiana Revised Statute 24:513, this report Is distributed by the Legislative Auditor as a public document.
JJCOTE& COMPANY Maricsvlile, Louisiana November 26.2013
50
Anwriean Institute of • Members « Soeiefy of Louisiana Certified Public Accountants Certified Public Accountants
219 Nortii Washington • B)8t Office Box 309 * Marksville, Louiaiana 71351 • (318) 253^6501 • Fbx (318) 253-0721
TOWN OF SIMMESPORT, LOUISIANA Schedule of Findings and Responses
For the Year Ended June 30,2013
Sectfon / - Summary ofAurStors' Results
Financial Statements
Type of auditors' report issued: Qualified
Internal control over financial reporting: Material weakness (es) identified? Reportable conditlon(s) identified not
Considered to be material weakness(es) x ves no
Noncompliance material to financial statements noted? x yea no
Federal Awards
Not applicable for the fiscal year ended June 30 2013.
Section U-Flnanclal Statament Findings
There are two reportable conditions that are believed to be a material weakness listed as 2013-05 and 2013-06, and there are four instances of noncompliance listed as 2013-01, 2013-02, 2013-03, and 2013-04.
Section III - Federal Award Findings and Questioned Costs
Not applicable for the fiscal year ended June 30,2013.
Section IV Summary of Current Year Audit Findings and Responses
Finding 2013-01: Lack of sufficient accounting expertise to prepare financial statements
Condition Found: As noted In the prior year report as finding 12-01, the accounting personnel of the Town, while capable of handling their accounting responsibilities, lack sufficient expertise to prepare the annual financial statements with full dlscU>sures as required by Generally Accepted Accountir^ Procedures (GAAP) and Govemmentel Auditing Standards.
Cause: The job requirements do not include a degree in accounting or a sufficient level of knowledge to prepare GAAP financial statements. The salary and position do not Justify this requirement to fill that position and the Town has typically relied on the assistance of the auditor to prepare the financial statements in accordance with required standards.
Recommendation: Adequate involvement and oversight In the preparetlon of the financial statements whereby accounting personnel fully understand and take responsibility for their fair presentation is mandatory to maintain Independence with respect to the auditing firm conducting the audit.
Management's Response and Corrective Action Plan: It is not cost feasible to hire someone with sufficient knowledge and expertise to prepare the financial statements in accordance with the curent reporting standards. It is our intention, however, to continue to take responsibility for the preparation of the financial statements by verifying the information contained therein as presented. In addition, the Town will take full responsibility for any audit adjustments proposed by the auditor with full understanding of those adjustments and the disclosures contained In the financial report before its issuance.
51
TOWN OF SIMMESPORT, LOUISIANA Schedule of Findings and Responses (Continued)
For the Year Ended June 30,2013
Finding 2013-02: Overall budget variance In General Fund and Sales Tax Fund.
Condition Found: Actual expenditures in the General Fund were within a 5% variance for the fiscal year, however, the overall unfevorable budget variance after taking into consideration the variance in revenues and transfers into the General Fund was greater than 15% of total expenditures for that fund. The General Fund had an overall unfavorable budget variance of $120.897expenses exceed budgeted expenses by $230,781 or 36%. in the Sales Tax Fund, the expenditures were 51% over budget hovvever the sales tax fund had an overall favorable budget variance of $36,943. These variances are In violation of the Louisiana Local Govemment Budget Act (R.S. 39:1301-1316).
Cause: The overall unfavorable budget variance in the General Fund was primarily due to focus on spending while not adjusting the budget for the overall decrease in revenues and operating transfers In. The Town's collected general fund revenues were $97,599 less than expected which resulted In an overall increase in the Town's General Fund deficit of $98.177.
Recommendation: Management should. In addition monitoring spending more closely monitor the revenue sources available for spending.
Management's Response and Corrective Action Plan: The recommendatton is accepted and budget variances will be monitored more frequently in the future and amendments made when applicable in order to comply with the Louisiana Local Govemment Budget Act In addition, numerous cost cutting measures have been initiated and will continue to be Implemented as disclosed In Note 18.
Finding 2013-03: Deficit fund balance in the General Fund.
Condition Found: The General Fund ended the fiscal year with a deficit fund balance of $211,047. Deficit spending Is strictly prohibited by the Louisiana Local Budget Act (R.S. 39:1305), which prohibits spending in excess of funds available.
Cause: The deficit Incurred was primarily due to improper monitoring of the annual budgeted revenues and maintaining expenditures within available revenue and operating sources and noted in finding 2013-02.
Recommendation: Management should attempt to have a better control over spending in all departments and more closely monitor and make amendments where needed to stay within resources available for spending.
Management's Response and Corrective Action Plan: The recommendation is accepted and the Mayor and Board of Aldermen have formed committees to look into ways that additional revenue can be generated in addition to continually monitoring the spending cuts that have been Initiated as disclosed in Note 18.
52
TOWN OF SIMMESPORT, LOUISIANA Schedule of Findings and Responses (Continued)
For the Year Ended June 30,2013
Finding 2013-04: Penalties assessed on late payment of payroll tax deposits.
Condition Found: As noted in the prior year report, during the fiscal year ended June 30, 2013, the Town paid approximately $12,000 in penalties for failure to make payroll tax deposits timely. The third and fourth quarter payments of 2012 were not deposited until January 2013.
Cause: Due to the cash fiow problems that resulted from the overspending mentioned in tiie previous findings, Uie funds were not available to make timely payroll tax deposits.
Recommendation: Late payment of payroll tax deposits result in unnecessary cost to the Town as they are usually assessed penalties of up to 25% of the payment amount Management should make every effort to comply with all payroll tax deposit requirements and maintain compliance witii ttie Intemal Revenue Sen/lce at all times.
Managemenfs Response and Corrective Action Plan: All delinquent deposits from the prior year were made and payroll deposits have been made timely since the last audit report was Issued.
Finding 2013-05: Lack of controls over utility billing adjustments for the Enterprise Funds.
Condition Found: An overall reconciliation of utility billings for the fiscal year ended June 30, 2013, refiected billing adjustments totaling over $33,000 and charge-offs totaling over $21,000. As commented In ttie prior year report, ttiese adjustments continue to be excessive. The Town has Implemented a procedure requiring the Mayor to approve all billing adjustments before they are entered into ttie computer however, the approval sheets are not being maintained in an orderiy fashion and are not reconciled to the total adJusUnents In ttie computerized utility billing system.
Cause: There is no procedure in place to reconcile the adjusttnents entered into ttie computer to the approved adjustments nor Is there a procedure being performed to reconcile receivables to the computer utility billing system.
Recommendation: Management should retain all billing adjustments approved by ttie Mayor and establish a procedure to reconcile these adjustments to ttiose entered Into ttie utility billing system each month in order to avokl entering any unauthorized adjustments. Unpaid balances written off should also be tracked by montti and reconciled to the monthly reports. As recommended in the prior year report, a periodic reconciliation should be done to verify ttie balance in receivables, based on ttie amounts billed net of collections and approved billing adjustments and charge-offs. on at least a monttily basis.
Management's Response and Corrective Action Plan: The recommendatton has been accepted and will be Implemented.
53
TOWN OF SIMMESPORT, LOUISIANA Schedule of Findings and Responses (Continued)
For the Year Ended June 30,2013
Finding 2013-06: Debit Card Transaction Policy.
Condition Found: The Town began using a debit card for certain transactions paid ttirough the general clearing account several years ago. As commented in the prior year report there is no policy in place for the use of the card. The bank account associated with this card is a dual signature account but use of the debit card does not require prior approval or dual authorization of any kind. Cunent year transactions reflect some transactions that may not be Town related or auttiorized by the appropriate authority. In addition, several of ttie debit card transactions were also reimbursed on the Mayor's expense reports as the receipts were tumed In for reimbursement but had already been paid by the Town through the debit card. The total unauthorized or duplicate charges are approximately $200 for the fiscal year ended June 30,2013 and approximately $150 subsequent to June 30,2013, as of ttie date of ttiis report.
Cause: Debit card transactions can be initiated without prior approval and the card was issued for convenience only to purchase items over the telephone or Intemet The lack of a policy and control over the use of ttie card can result In unauthorized use.
Recommendation: The Town should adopt a debit card policy that wouM require authorization before any debit card purchases are initiated or cancel the debit card. Any unauthorized or duplicate transactions paid on the account ttiat are not Town related or double paid should be reimbursed to the Town immediately.
Management's Response and Corrective Action Plan: Effective December 2013 the debit card has been cancelled and the Town Is reviewing all debit card activity and plans to obtain reimbursement for any unauttiorized or duplicate transactions.
54
TOWN OF SIMMESPORT, LOUISIANA Status of Prior Audit Findings
For the Year Ended June 30,2013
RefNo.
Fiscal Year Finding initially Occurred Description of Finding
Corrective Action Taken
(Yes, No, PartlalM
Planned Corrective Action/ Partial Corrective Action Taken
Section I - internal Control and Compliance Material to the Financial Statements 12-01 June 2007 l-ack of accounting expertise
12-02 June 2010 Budget variance in General Fund exceeds 5%
12-03 June 2012 Deficit fund balance In General Fund
12-04 June 2012 Deficiency in cash to fund Customer Meter Deposits
12-05 June 2012 Penalties assessed on late payment of payroll tax deposits
12-06 June 2012 Timely submission of audit report
No
No
No
Yes
Yes
Not cost feasible see 13-01
Finding still exists see 13-02
Finding still exists see 13-03
Funds were replaced In the cunent year
Penalties paid for for prior year, all payments timely beginning In 2013 see 13-04
Yes
12-07
12-08
12-09
June 2012 Lack of controls over utility billing Partial adjustments for the Enterprise Funds
June 2012 Debit Card Transaction Policy Yes
June 2012 Excessive spending on food & drink Yes
Finding still exists see 13-05
Connoted Dec 2013 see 13-06
Section 11 - Intemal Control and Compliance Material to Federal Awards
None reported in prior year.
Section ill - Management Letter
None reported In prior year.
55