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CITYOFBUNKIE

ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED JUNE 30, 2000

OFFIC IALFiU C O P Y

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Under provfeions of state law, this report fs a publicdocument. A copy of the report has been submitted tothe entity and other appropriate pub-'tc officials. Thereport ("s avai.'abfe for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.

Re/ease Date..

TABLE OF CONTENTS

PAGE

INDEPENDENT AUDITORS'REPORT 1-2

GENERAL PURPOSE FINANCIAL STATEMENTSCombined Balance Sheet 3Combined Statement of Revenues, Expenditures and Changes in

Fund Balance - All Governmental Fund Types 4Combined Statement of Revenues, Expenditures and Changes in

Fund Balance -Budget (GAAP Basis) and Actual - General andSpecial Revenue Funds 5

Combined Statement of Revenues, Expenses and Changes inRetained Earnings - Proprietary Fund Type 6

Combined Statement of Cash Flows - Proprietary Fund Type 7Notes To Financial Statements 8-21

INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ONINTERNAL CONTROL OVER FINANCIAL REPORTING BASEDON AN AUDIT OF FINANCIAL STATEMENTS PERFORMEDIN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 22- 23

INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTSAPPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVERCOMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 24- 25

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 26

SUMMARY OF FINDINGS AND QUESTIONED COST 27

MANAGEMENTS CORRECTIVE ACTION PLAN 28

SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COST 29

SUPPLEMENTAL FINANCIAL INFORMATIONGeneral Fund-Comparative Balance Sheets 31General Fund - Statement of Revenues, Expenditures, and

Changes in Fund Balance -Budget and Actual 32General Fund -Schedule of Revenues -Budget and Actual 33General Fund- Schedule of Expenditures - Budget and Actual 34-36Special Revenue I^inds-O)mbinmg Balance Sheets 38Special Revenue Funds - Combining Statement of Revenues,

Expenditures and Changes in Fund Balance 39Capital Project Funds -Combining Balance Sheets 41Capital Project Funds - Combining Statement of Revenues,

FxpflKftftTff *"** rhangftc iti Finut Ralanrr 42

Enterprise Fund - Combining Balance Sheet 44Enterprise Fund- Combining Statement of Revenues,

Expenses and Changes in Retained Earnings 45

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KENNETH J. BREAUXCERTIFIED PUBLIC ACCOUNTANT

305 WALNUT STREET • P.O. BOX 140BUNKIE, LOUISIANA 71322

PHONE (318) 346-2652FAX (318) 346-6547

KENNETH J. BREAUX. C.P. A.ROBERT E. MORROW, C.P. A

September 15, 2000

The Honorable Mayorand Members of the Board of AldermenCity of Bunkie, Louisiana

I have audited the accompanying primary government financial statements of the City of Bunkie,Louisiana as of June 30, 2000 and for the year then ended. These financial statements are theresponsibility of the City's management. My responsibility is to express an opinion on thesefinancial statements based on my audit.

I conducted my audit in accordance with generally accepted auditing standards, and GovernmentAuditing Standards, issued by the Comptroller General of the United States. Those standards requirethat I plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An audit also includes assessingthe accounting principles used and significant estimates made by management, as well as evaluatingthe overall financial statement presentation. I believe that my audit provides a reasonable basis formy opinion.

A primary government is a legal entity or body politic and includes all funds, organizations,institutions, agencies, departments, and offices that are not legally separate. Such legally separateentities are referred to as component units. In my opinion, the primary government financialstatements present fairly, in all material respects, the financial position of the primary government ofthe City of Bunkie, Louisiana, as of June 30, 2000, and the results of its operations and cash flows ofits proprietary fund types for the year then ended in conformity with generally accepted accountingprinciples.

However, the primary government financial statements, because they do not include the financialdata of the component units of the City of Bunkie, Louisiana, do not purport to, and do not, presentfairly the financial position of the City of Bunkie, Louisiana as of June 30, 2000 and the results of itsoperations and cash flows of its proprietary funds for the year then ended in conformity withgenerally accepted accounting principles.

In accordance with Government Auditing Standards, I have also issued a report dated September 15,2000 on my consideration of the City of Bunkie's internal control over financial reporting and itscompliance with certain provisions of laws, regulations, contracts and grants.

MEMBER OFAMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS + SOCIETY OF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS

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The Honorable Mayor andMembers of the Board of Aldermen

September15,2000Page 2

My audit was conducted for the purpose of forming an opinion on the primary government financialstatements taken as a whole. The combining and individual fund financial statements and scheduleslisted in the table of contents are presented for purposes of additional analysis and are not a requiredpart of the primary government financial statements of the City of Bunkie, Louisiana. Theaccompanying schedule of expenditures of federal awards is presented for purposes of additionalanalysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States,Local Governments, and Non-Prqfit Organizations, and is also not a required part of the primarygovernment financial statements of the City of Bunkie, Louisiana. Such information has beensubjected to the auditing procedures applied in the audit of the primary government financialstatements and, in my opinion, is fairly presented in all material respects in relation to the primarygovernment financial statements taken as a whole.

KENNETH J.BREAUXCERTIFIED PUBLIC ACCOUNTANT

MEMBER OFAMERICAN INSTITUTEOF'CERTIFIED PUBUCACCOUNTANTS + SOCIETY OF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS

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CITY OF BUNKIE, LOUISIANACOMBINED STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCESAll Governmental Fund Types

For the Year Ended June 30, 2000

Revenues:TaxesLicenses and permitsIntergovernmentalUtility agreementsOtherTotal Revenues

Expenditures-General governmentFire protectionPolice protectionHighways and streetsRecreationAirportAnimal controlCapital outlayTotal Expenditures

Excess (deficiency) of revenuesover expenditures

Pfher financing SOUTCCS (uses)

Operating transfers inOperating transfers (out)Total other sources (uses)

Excess (deficiency) of revenuesand other sources over expendituresand other uses

Fund balances, beginning

Fund balances, ending

General

$ 382,154126,459649,925160,71972,003

$ 1,391,260

$ 479,958284,936458,308226,597

51,711346,358

9,794-

$ 1,857,662

$ (466,402)

550,650(6,980)

$ 543,670

$ 77,268

$ 601,860

$ 679,128

SpecialRevenue

$ 523,865,

--

20,912$ 544,777

$ 15,309-------

$ 15,309

$ 529,468

-(302,432)

$ (302,432)

$ 227,036

$ 633,839

$ 860,875

Capital MemorandumProjects Totals

$ - $ 906,019126,459

1,206,950 1,856,875160,719

59,344 152,259$ 1,266,294 $ 3,202,331

$ - $ 495,267284,936458,308226,59751,711

346,3589,794

1,273,274 1,273,274$ 1,273,274 $ 3,146,245

$ (6,980) $ 56,086

6,980 557,630(309,412)

$ 6,980 S 248,218

$ - $ 304,304

$ 49 1,235,748

$ 49 $ 1,540,052

UK accompanying notes are an integral part of the financial statenentB.

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CITY OF BUNKIE, LOUISIANACOMBINED STATEMENT OF REVENUES, EXPENSES,

AND CHANGES IN RETAINED EARNINGSProprietary Fund Type


ENTERPRISE FUND

Operating revenues:Charges for servicesDelinquent and other charges

Total operating revenues

Operating expenses:Salaries and wagesEmployee benefitsChemicals and suppliesRepairs and maintenanceUtilities and telephoneGasoline and oilDepreciationOther expensesInflow and infiltration

Total operating expenses

Operating income

Non-operating revenues (expenses)Interest incomeInterest expenseLoss on disposal of assetsAd valorem taxes

Total non-operating revenues (expenses)

Income before operating transfers

Operating transfers in (out)Sales Tax FundGeneral Fund

Total operating transfers in (out)

Net income

Retained earnings, beginning of year

Retained earnings, end of year

720,88933,217

156,03550,93342,33318,88363,4064,765

173,78236,16346,575

38,432(286,650)

754,106

592,875

161,231

$ 23,663(119,627)

(3,808)238,393

138,621

299,852

(248,218)

51,634

513,530

565,164

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

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CITY OF BUNKIE, LOUISIANACOMBINED STATEMENT OF CASH FLOWS

Proprietary Fund TypeFor the Year Ended June 30, 2000

ENTERPRISE FUND

Cash flows from operating activities:Operating income

Adjustments to reconcile operating income to net cashprovided by operating activities:DepreciationLoss on disposal of assetsChanges in assets and liabilities:(Increase) decrease in accounts receivableIncrease (decrease) in payables and accrued expensesIncrease (decrease) in meter depositsNet adjustments

Net cash provided by operating activities

Cash flows from non-capital financing activities:Proceeds from sale of truckIncrease (decrease) in due to other fundsOperating transfers inOperating transfers out

Net cash used by non-capital financing activities

Cash flows from capital and related financing activities:Purchase of property and equipmentBasis of assets disposedGrant proceedsAd valorem taxesBond principal paymentsInterest payments

Net cash used by capital and related financing activities

Cash flows from investing activities:Interest earned

Net cash provided by investing activities

Net increase in cash and cash equivalents

Cash and cash equivalents, beginning

Cash and cash equivalents, ending

Restricted Cash

Cash and cash equivalents, unrestricted

173,7823,808

9443,4337.649

6011,124

38,432(286,650)

(10,806)(4,409)2,295

238,393(121,839)(123,103)

23,663

161,231

189,616

350,847

(246,493)

(19,469)

23,663

108,548

886,194

994,742

637,765

356,977

SmplcmcntsJDfadogoreg;During the year ended June 30, 2000, the City completed construction on sewer systemimprovements. For the year ended June 30, 2000, construction expenditures totaled $846,488.All of the receipts and disbursements associated with this project were reported in a capitalprojects fund. As a result, construction of the sewer system improvements has not affected cashflow reported by the City's utility funds. There were no further noncash operating, financing orinvesting activities.

The accompanying notes are an Integral part of the financial statement*.

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CITY OFBUNKIE, LOUISIANANOTES TO FINANCIAL STATEMENTSJune 30, 2000

NOTE 1 - SUMMARY OF SIONTFirANT ACCOUNTING POLICIES

The City of Bunkie, Louisiana (the City) was incorporated in 1910 under the provisions of LouisianaLaw. The City operates under the Lawrason Act with a. Mayor - Board of Aldermen form ofgovernment and provides the following functions to its citizenry: public safety (police and fireprotection), highways and streets, sanitation, health and social services, culture and recreation,public improvements, utility services (water and sewer), planning and zoning, and generaladministrative services.

The accounting and reporting policies of the City conform to generally accepted accountingprinciples as applicable to local governments. The Governmental Accounting Standards Board is theaccepted standard-setting body for establishing governmental accounting and financial reportingpractices. Such accounting and reporting procedures also conform to the requirements of LouisianaRevised Statutes 24:517 and to the guides set forth in the Louisiana Municipal Audit and AccountingGuide and to the industry audit guide, Audits of State and Local Governmental Units. Proprietaryfunds apply Financial Accounting Standards Board (FASB) pronouncements and AccountingPrinciples Board (APB) opinions issued on or before November 30, 1989, unless thosepronouncements conflict with or contradict GASB pronouncements, in which case, GASB prevails.The following is a summary of the more significant policies.

FINANCIAL REPORTING ENTITYThe accompanying financial statements reflect only the primary government of the City of Bunkie.The primary government includes only those funds, organizations, institutions, agencies,departments, and offices that are not legally separate from the City. The financial statements do notinclude the data of the component units necessary for general purpose financial reporting inconformity with generally accepted accounting principles.

BASIS OF PRESENTATIONThe accounts of the City are organized on the basis of funds and account groups, each of which isconsidered a separate accounting entity. The operations of each fund are accounted for with aseparate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, andexpenditures or expenses, as appropriate. Government resources are allocated to and accounted forin the individual fimds based upon the purposes for which they are to be spent and the means bywhich spending activities are controlled. The various funds are grouped in the financial statementsinto fund types and account groups as described below.

Governmental Fund Types - Governmental funds are those through which general governmentfunctions of the City are financed. The acquisition, use, and balances of the City's expendablefinancial resources and the related liabilities (except those accounted for in proprietary funds) areaccounted for through governmental funds. The following are the City's governmental fund types:

General Fund - The general fund is the main operating fund of the City. It is used toaccount for all financial resources not accounted for in other funds. All general taxrevenues and other receipts that are not restricted for a specific purpose are accounted forin this fund.

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CITYOFBUNKIE, LOUISIANANOTES TO FINANCIAL STATEMENTSJune 30, 2000

Special Revenue Funds - Special revenue funds are used to account for the proceeds ofspecific revenue sources restricted to expenditures for specific purposes.

Capital Projects Fund - The capital projects fiind is used to account for financialresources to be used for the acquisition or construction of major capital facilities (otherthan those financed by proprietary funds and trust funds) being financed from generalobligation bond proceeds, grants, or transfers from other funds.

Proprietary Fund Types - Proprietary funds are accounted for on a flow of economic resourcesmeasurement focus. The accounting objectives are a determination of net income, financial position,and changes in cash flow. All assets and liabilities associated with a proprietary fund's activities areincluded on its balance sheet. Proprietary fund equity is segregated into contributed capital andretained earnings. The following is the City's proprietary fund type:

Enterprise Fund - Enterprise funds are used to account for activities which are financedand operated in a manner similar to private business enterprise where the intent of thegoverning body is that the costs (expenses, including depreciation) of providing goods orservices to the general public on a continuing basis be financed or recovered primarilythrough user charges or where the governing body has decided the periodic determinationof revenues earned, expenses incurred, and/or net income is appropriate for capitalmaintenance, public policy, management control, accountability, or other purposes. Theenterprise fund reported in the financial statements provides water and sewer services tothe residents of the City and certain adjacent areas.

Account Groups - An account group is used to establish accounting control and accountability forthe City's general fixed assets. The account group is not a "fund". It is concerned only with themeasurement of financial position. It is not involved with the measurement of results of operations.

General Fixed Assets Account Group - This account group is established to account forall fixed assets of the City, other than those assets accounted for in the proprietary funds.Capital outlays in funds other than the proprietary funds are recorded as expenditures ofthose funds at the time of purchase and are subsequently recorded for control purposes inthe General Fixed Assets Account Group.

MEASUREMENT FOCUS/BASIS OF ACCOUNTINGMeasurement focus refers to what is being measured; basis of accounting refers to when revenuesand expenditures are recognized in the accounts and reported in the financial statements. Basis ofaccounting relates to the timing of the measurement made, regardless of the measurement focusapplied.

The governmental fund types use a current financial resources measurement focus and are accountedfor using the modified accrual basis of accounting. Under the modified accrual basis of accounting,

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CITY OF BVNKIE, LOUISIANANOTES TO FINANCIAL STATEMENTSJune 30, 2000

revenues are recognized when susceptible to accrual, i.e., when they become both measurable andavailable. "Measurable" means the amount of the transaction can be determined and "available"means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Expenditures are recorded when the related fund liability is incurred. Exceptionsto this general rule include principal and interest on general long-term debt which are recorded asfund liabilities when due or when amounts have been accumulated in the Debt Service Fund forpayments to be made early in the following year.

The proprietary fund types are accounted for on an economic resources measurement focus using theaccrual basis of accounting. Revenues are recorded when they are earned, including unbilled waterand sewer services which are accrued. Expenses are recorded at the time liabilities are incurred.

BUDGETARY CONTROLThe City Charter establishes the fiscal year as the twelve-month period beginning July 1. Theprocedures detailed below are followed in establishing the budgetary data reflected in the financialstatements.

The City Clerk and Mayor prepare a proposed budget based on an estimate of the revenues expectedto be received in the next fiscal year and submits the proposal to the Board of Aldermen by April 30of each year. A summary of the proposed budget is published and the public is notified that theproposed budget is available for public inspection. At die same time, a public hearing is set.

A public hearing is held on the proposed budget at least ten days after publication of the call for thehearing. After the holding of the public hearing and completion of all action necessary to finalizeand implement the budget, the budget is adopted through passage of an ordinance prior to thecommencement of the fiscal year for which the budget is being adopted.

As required by state law, the budgets are amended whenever projected revenue fails to meet originalexpectations or when projected expenditures exceed original expectations. Budgetary amounts arepresented as amended and all budgetary appropriations lapse at the end of the fiscal year.

CASH AND CASH EQUIVALENTSFor reporting purposes, cash and cash equivalents (restricted and unrestricted) includes all cash onhand, cash in bank accounts, certificates of deposit, and highly liquid investments maturing in threemonths or less. Cash restricted for payment as required by law, contract, or agreement is reportedseparately in the financial statements.

ENCUMBRANCE ACCOUNTINGPurchase orders, contracts, and other commitments to engage in future expenditures are referred toas encumbrances. Since encumbrances do not represent liabilities or current expenditures,encumbrances are not reported in the accompanying financial statements.

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CITY OF BUNKIE, LOUISIANANOTES TO FINANCIAL STATEMENTSJune 30, 2000

INTERFUND RECEIVABLES AND P AY ABLESInterfund receivables and payables arise from interfund transactions and are recorded by all fundsaffected in the period in which transactions are executed.

DUE FROM OTHER GOVERNMENTAL UNITSReceivables from other governmental units represent collections of various revenues which areexpected to be submitted within sixty days after the close of the fiscal year.

PROPERTY, PLANT. AND EQUIPMENTFixed assets used in governmental fund type operations (general fixed assets) are accounted for inthe General Fixed Assets Account Group, and are recorded as expenditures in the governmental fundtypes when purchased. The City has elected to capitalize public domain or "infrastructure" fixedassets consisting of certain improvements other than buildings, including roads, bridges, sidewalks,and drainage improvements. No depredation has been provided on general fixed assets.

All fixed assets are stated at historical cost, including interest when material, or estimated historicalcost if actual historical cost is not available. Donated fixed assets are stated at their estimated fairvalue on the date donated.

Depreciation of all exhaustible fixed assets used by the proprietary fund is charged as an expenseagainst its operations. Depreciation is computed using the straight-line method over the estimateduseful lives of the assets as shown below:

Distribution system and extensions 25 yearsWater wells, tanks, lines, pumps, and hydrants 25 yearsWastewater plant upgrade 40 yearsSewer lines and stations 40 yearsWater meters 10 years

LONG-TERM DEBTLong-term liabilities expected to be financed from governmental funds are accounted for in theGeneral Long-term Debt Account Group. Long-term liabilities for certain general obligation debtand revenue bonds used to construct proprietary fund fixed assets are accounted for in the enterprisefunds.

COMPENSATED ABSENCESThe City does not accumulate unpaid vacation, sick pay, and other employee benefit amountsbecause employees are not allowed to carry over significant amounts.

TOTAL COLUMNS ON COMBINED STATEMENTS - OVERVIEWTotal columns on the combined statements are captioned "Memorandum Only" to indicate that theyare presented only to facilitate financial analysis. Data in these columns do not present financial

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position, results of operations, or changes in financial position in conformity with generally acceptedaccounting principles. Neither is such data comparable to a consolidation. Interrund eliminationshave not been made in the aggregation of this data.

NOTE 1 - CASH AND CASH EQTTTVAT.FNTS

At June 30, 2000, cash and cash equivalents totaled $2,420,931 (book balance) and $2,531,149(bank balance). The book balance included $888,088 that is classified as restricted, and theremaining $1,532,843 is considered unrestricted. The composition of these accounts is as follows:

BookBalance

Demand Deposits - noninterest bearingInterest-bearing checking and certificates of depositPetty cashTotal cash and cash equivalentsRestricted cashCash and cash equivalents

$

$

$

87,0572,333,374

5002,420,931

888,0881,532,843

BankBalance

$

$

$

145,8222,385,327

2,531,149937,763

1,593,386

Under state law, these deposits must be secured by federal deposit insurance or by the pledge ofsecurities held by the bank. The securities pledged are held in the name of the pledging bank in acustodial bank that is mutually acceptable to both parties. At June 30, 2000, all deposits withfinancial institutions were fully covered by federal deposit insurance and/or pledged securities. Adetailed analysis of this coverage is as follows:

Total cash at June 30, 2000 (Bank Balance) $ 2,531,149Less: FDIC insurance coverage 533,059Subtotal 1,998,090Pledged securities at custodial banks 3,389,544Excess of FDIC insurance and pledged assets $ 1,391,454

Even though the pledged securities are considered uncollateralized (Category 3), State law imposesa statutory requirement on the custodial bank to advertise and sell the pledged securities within ten(10) days of being notified by the City that the pledging bank has failed to pay deposited funds ondemand.

Restrictions on cash imposed by various bond agreements and/or state law are disclosed in Note 13.

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NOTE 3 - RECEIVABLES

Receivables at June 30, 2000 consisted of the following:

Charges for servicesAccrued interest receivableOther chargesTotal receivablesLess: allowance for uncollectiblesReceivables, net of allowance

GeneralFund

$ --575

58,62459,199

—$ 59,199

SpecialRevenue

$

$

_

717

—717

—717

EnterpriseFund

$ 109,726

——

109,7262,000

$ 107,726

MemorandumTotals

$ 109,7261,292

58,624169,642

2,000$ 167,642

NOTE 4 - INTERFITND RECEIVABLES AND PAYAJRl'F'5Interfund receivables and payables at June 30, 2000 consisted of the following:

Receivable Payable

General FundSpecial Revenue Fund:

Sales Tax FundCapital Projects FundProprietary Fund:

Sewer System FundTotals

$ 69,191

6,980

~ $ 7 6 , 1 7 1

$ 6,980

59,222

9,969$ 76,171

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NOTE S - DTTE FROM OTHER GOVERNMENTAL ITNTTS

Amounts due from other governmental units at June 30, 2000 consisted of the following:

General Special Capital MemorandumFund Revenue Projects Total

State of LouisianaFire insurance taxesMotor vehicle taxesBeer and tobacco taxesVideo poker taxISTEA

Avovelles ParishSales taxesCasino tax

Bunkie Citv CourtFines

Total

$ 13,042 $ — $ — $5,547 —

9,909 — —4,500 — —

29,260

56,823 —26,000

1 AAAJt , f i l — -•

$ 54,895 $ 62,370 $ 29,260 $

13,0425,5479,9094,500

29,260

56,82326,000

1,444146,525

NOTE 6 • FIXED ASSETS

A summary of general fixed asset transactions for the year ended June 30, 2000 follows:

Construction in progress

Land

BuildingsImprovements

VehiclesEquipment

Balance

June 30, 1999

$ 19,960

182,551

883,107800,124

406,739443,277

Additions

$ 435,136

40,000

—362,48554,9067,446

Disposals

j — —

—

13,11810,000

BalanceJune 30, 2000

$ 455,0%

222,551883,107

1,162,609448,527

440,723

Total $ 2,735,758 899,973 $ 23,118 $ 3,612,613

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CITY OFBUNKIE, LOUISIANANOTES TO FINANCIAL STATEMENTSJune 30, 2000

A summary of Proprietary Fund Type property, plant, and equipment at June 30, 2000 follows:

Well sites and right of wayDistribution system and equipmentTreatment plant and sewer linesVehicles and equipment

SubtotalLess: accumulated depreciationNet property and equipment

WaterSystem

$ 45,5452,442,695

——

2,488,2401,665,140

$ 823,100

SewerSystem

5

—5,256,917159,503

5,416,420805,161

$ 4,611,259

Total

$ 45,5452,442,6955,256,917

159,5037,904,6602,470,301

$ 5,434,359

For the year ended June 30, 2000, depreciation expense totaled $ 173,782.

NOTE 7; LONG-TERM DEBT

At June 30, 2000, long-term debt consisted of the following individual issues:

EnterpriseFund

General Obligation Bonds

1992 General Obligation Bonds, dated July 30,1992, due in annualinstallments ranging from $56,592 to $181,543, maturing July 30,2017 bearing interest at a rate of 5.0%, secured by an annual advalorem tax.

Revenue Bonds

Waterworks Utility Revenue Bonds, dated July 1, 1970, due inannual installments ranging from $3,000 to $52,000, maturing July1, 2002, bearing interest at a rate of 5.0%. Revenue generated bythe City's water system has been pledged to secure these bonds.

TotalLess: current portion of long-term debtNet long-term debt

2,239,228

101,000

2,340,22879,631

$2,260,597

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Transactions for the year ended June 30, 2000 are summarized as follows:

Balance Balance6-30-99 Additions Payments 6-30-00

Proprietary FundGeneral obligation bondsRevenue bondsTotal

$2,315,067147,000

$ 2,462,067

$

$

j

$

75,83946,000

121,839

$ 2,239,228101,000

$ 2,340,228

GENERAL OBLIGATION BONDSGeneral obligation bonds are direct obligations issued on a pledge of the general taxing power forthe payment of the debt obligations of the City. General obligation bonds require the City tocompute, at the time the taxes are levied, the rate of tax required to provide (in each year the bondsare outstanding) sufficient resources to pay principal and interest at maturity.

The 1992 General Obligation Bonds are payable from ad valorem taxes levied, within the limitsprescribed by law, against all taxable property within the City as provided in the bond ordinance.

REVENUE BONDSWaterworks Utility Revenue Bonds constitute special obligations of the City secured by a lien onand pledge of the net revenues of the water system.

The revenue bonds are collateralized by the revenue of the water system and the various specialfunds established by the bond ordinance. The ordinance provides that the revenue of the system is tobe used first to satisfy the City's obligation on the bond issue, second to pay all reasonable expensesof administration, operation, and maintenance of the system, and third to establish and maintain therevenue bond funds as set forth in the bond ordinances. Remaining revenues may then be used forany lawful purpose. The City is in compliance with all significant requirements of the ordinance atJune 30,2000.

ANNUAL REQUIREMENTS TO RETIRE DEBT OBLIGATIONS -The annual aggregate maturities for the years subsequent to June 30, 2000 are as follows:

Year EndingJune 30 Total

2001 79,6312002 132,6122003 139,7932004 92,1822005 96,792

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Year EndingJune 30 Total

Thereafter 1,799,218Total $ 2,340,228

NOTE 8; AD VALOREM TAXES

Ad valorem taxes are assessed on a calendar year basis and are due on or before December 31 in theyear in which the tax is levied. Property taxes are recognized in compliance with NCGAInterpretation 3 - (Revenue Recognition - Property Taxes) which states that such revenue is recordedwhen it becomes measurable and available. Available means due or past due and collected no longerthan 60 days after the close of the current period.

For the year ended June 30, 2000, the City levied 5.66 mills of taxes totaling $77,119 and collected$77,351, which was dedicated to the general corporate purposes of the City.

For the year ended June 30, 2000, the City levied 17.50 mills of taxes totaling $238,444 andcollected $238,393, which is dedicated to the payment of general obligation bonds issued to financeconstruction of the Wastewater Treatment Plant.

NOTE 9; PENSTQN PLANS

Substantially all employees of the City of Bunkie are members of the Municipal Police Employees'Retirement System of Louisiana or the Municipal Employees' Retirement System. These systemsare multiple-employer (cost-sharing) public employee retirement systems (PERS), controlled andadministered by separate boards of trustees.

MUNICIPAL EMpmvires* RETIREMENT SYSTEM OF LOUISIANA (SYSTEM!The System is composed of two distinct plans, Plan A and Plan B, with separate assets and benefitprovisions. All employees of the City participating in the retirement system are members of Plan A.All permanent employees working at least 35 hours per week who are not covered by anotherpension plan and are paid wholly or in part from municipal funds and all elected municipal officialsare eligible to participate in the System. Under Plan A, employees who retire at or after age 60 withat least 10 years of creditable service, at or after age 55 with at least 25 years of creditable service, orat any age with at least 30 years of creditable service are entitled to a retirement benefit, payablemonthly for life, equal to 3 percent of their final-average salary for each year of creditable service.Final-average salary is the employee's average salary over the 36 consecutive or joined months thatproduce the highest average. Employees who terminate with at least the amount of creditableservice stated above, and do not withdraw their employee contributions, may retire at the agesspecified above and receive the benefit accrued to their date of termination. The System alsoprovides death and disability benefits. Benefits are established by state statute.

-17-


Contributions to the System include one-fourth of one percent of the taxes shown to be collectible bythe tax rolls of each municipality, except Orleans and East Baton Rouge Parishes. These tax dollarsare divided between Plan A and Plan B based proportionately on the salaries of the active membersof each plan. State statute requires covered employees to 'contribute 9.25 percent of their annualcovered salaries to the System. As provided by Louisiana Revised Statute 11:103, the employercontributions are determined by actuarial valuation and are subject to change each year based on theresults of the valuation for the prior fiscal year.

The System issued an annual publicly available financial report that includes financial statementsand required supplementary information for the System. That report may be obtained by writing tothe Municipal Employees Retirement System of Louisiana, 7937 Office Park Boulevard, BatonRouge, Louisiana 70809, or by calling (225) 925-4810.

MUNICIPAL POLICE EMPLOYEES RETIREMENT SYSTEM OF LOUISIANA (SYSTEM)All full-time police department employees engaged in law enforcement are required to participate inthe System. Employees who retire at or after age 50 with at least 20 years of creditable service or ator after age 55 with at least 12 years of creditable service are entitled to a retirement benefit, payablemonthly for life, equal to 3 1/3 percent of their final-average salary for each year of creditableservice. Final-average salary is the employee's average salary over the 36 consecutive or joinedmonths that produce the highest average. Employees who terminate with at least the amount ofcreditable service stated above, and do not withdraw their employee contributions, may retire at theages specified previously and receive the benefit accrued to their date of termination. The Systemalso provides death and disability benefits. Benefits are established by state statute.

State statute requires covered employees to contribute 7.5 percent of their annual covered salaries tothe System. As provided by Louisiana Revised Statute 11:103, the employer contributions aredetermined by actuarial valuation and are subject to change each year based on the results of thevaluation for the prior fiscal year.

The System issued an annual publicly available financial report that includes financial statementsand required supplementary information for the System. That, report may be obtained by writing tothe Municipal Police Employees Retirement System of Louisiana, 8401 United Plaza Boulevard,Baton Rouge, Louisiana 70809, or by calling (225) 929-7411.

NOTE 10; COMPENSATION OF Ft ACrTED OFFICIALS

Per diem payments to the Board of Aldermen and salaries paid to the Mayor for the year ended June30,2000 were as follows:

Position Amount

Gerard Moreau Mayor $ 14,123Rosa M. Guillory Mayor 7,477Travis Armand Alderman 900

-18-


Lemuel BassetteBruce CoulonCharles DescantAlbert KelleyGerard MoreauLarry Riche

AldermanAldermanAldermanAldermanAldermanAlderman

3,6003,6003,6003,6001,2001,350

$ 39,450

Alderman Gerard Moreau was elected to complete the unexpired term of Mayor John Guillory in thecurrent year. Alderman Travis Armand was elected to fill the vacancy created by Mr. Moreau'selection as Mayor.

NOTE 11; ACCOUNTS. SALARIES. ANT1 OTHER PAYABfJCS

The following is a summary of payables at June 30, 2000:

SalariesAccountsConstruction

Total

GeneralFund

$ 8,32557,982

—$ 66,307

CapitalProjects

Fund

—36,240$ 36,240

ProprietaryFund

$ 1,70516,735

—$ 18,440

Total

$ 10,03074,71736,240

$ 120,987

NQTE11! COMMITMENTS AND CONTINGENCIES

The City has been named as a defendant in several lawsuits as of June 30, 2000. These suits are atvarious stages in the legal system. It is not possible to predict at this time the extent of the City'sliability. Losses, if any, are not expected to exceed available insurance coverage.

NOTE 13; RESERVED FITND BALANCES AND RETAINED EARNINGS

Various bond covenants require the City to maintain cash reserves that can only be used underspecific circumstances. Since these funds are available only under specific circumstances, theamounts are presented as restricted. In addition, the City has collected ad valorem taxes from ataxpayer that has protested the tax assessment. The protested taxes are being held in escrow until theprotest can be resolved.

-19-


Amounts reported as restricted assets are summarized as follows:

Escrow for ad valorem taxesRestricted by bond indentureTotal restricted assetsLess: payable from restricted assetsTotal

GeneralFund

$ 75,702

75,702

$ 75,702

SpecialRevenue

Fund

$174,621174,621

$ 174,621

ProprietaryFund

j ••••637,765637,765182,262

$ 455,503

TotalsMemorandum

Only

$ 75,702812,386888,088182,262

$ 705,826

NOTE 14; INTERGOVERNMENTAL AGREEMENT

The 1991 Louisiana Legislature mandated that there be one agency per parish to collect the varioussales taxes levied in each parish. In June 1992, the City entered into an agreement with theAvoyelles Parish School Board whereby the School Board will act as the collecting agent and chargethe City one and one-half percent per month of the total taxes collected on behalf of the City. Forthe year ended June 30, 2000, the City paid the School Board $14,634 in collection fees.

NOTE IS; LTDBG ASSISTANCE

The City was awarded funding for improvements to its sewer collection system in the form of aCommunity Development Block Grant. Expenditures related to this project as of June 30, 2000 aresummarized as follows:

Current Previous

Total- 1997 LCDBG

Expenditures Expenditures

$ 846,488 $ 151,761

Total

$ 998,249

NOTE 16; CONTRIBUTED CAPITAL

Capital contributions reported by the Proprietary Fund for the year ended June 30, 2000 aresummarized as follows:

Water System

Balance June 30, 1999Current contributions - LCDBGContributions - USDA grantBalance June 30, 2000

$

$

Fund

940,736

——940,736

Sewer System

$

$

Fund

1,625,852846,488

2,2952,474,635

Total

$ 2,566,588846,488

2,295$ 3,415,371

-20-


Contributed capital is recorded in the proprietary funds that have received capital grants orcontributions and such resources are restricted for the acquisition or construction of capital assets.Contributed capital is not amortized based on the depreciation recognized on the portion of the assetsacquired or constructed from such resources.

NOTE 17: RTSK MANAGEMENT

The City is exposed to various risks of loss related to torts; theft of, damage to and destruction ofassets; errors and omissions; injuries to employees; and natural disasters. These risks of loss arecovered by participation in a public entity risk pool that operates as a common insurance programand by acquiring commercial insurance coverage. Claims resulting from these risks have historicallynot exceeded insurance coverage.

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305 WALNUT STREET • P.O. BOX 140BUNKIE, LOUISIANA 71322

PHONE (318) 346-2652FAX (318) 346-6547

KENNETH J. BREAUX. C.P. A.ROBERT E. MORROW, C.P. A

INDEPENDENTAUDITOR'S REPORTONCOMPLIANCE AND ON INTERNALCONTROL OVER FINANCIAL REPORTING BASED ON AN AUDITOF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS

September 15, 2000


City of Bunkie, Louisiana

I have audited the financial statements of the City of Bunkie, Louisiana, as of and for the year endedJune 30, 2000, and have issued my report thereon dated September 15, 2000. I conducted my auditin accordance with generally accepted auditing standards and the standards applicable to financialaudits contained in Government Auditing Standards, issued by the Comptroller General of theUnited States.

COMPLIANCEAs part of obtaining reasonable assurance about whether the City of Bunkie, Louisiana's financialstatements are free of material misstatement, I performed tests of its compliance with certainprovisions of laws, regulations, contracts and grants, noncompliance with which could have a directand material effect on the determination of financial statement amounts. However, providing anopinion on compliance with those provisions was not an objective of my audit and, accordingly, I donot express such an opinion. The results of my tests disclosed no instances of noncompliance thatare required to be reported under Government Auditing Standards.

INTERNAL CONTROL OVER FINANCIAL REPORTINGIn planning and performing my audit, I considered the City of Bunkie, Louisiana's internal controlover financial reporting in order to determine my auditing procedures for the purpose of expressingmy opinion on the primary government financial statements and not to provide assurance on theinternal control over financial reporting. However, I noted certain matters involving the internalcontrol over financial reporting and its operation that I consider to be reportable conditions.Reportable conditions involve matters coming to my attention relating to significant deficiencies inthe design or operation of the internal control over financial reporting that, in my judgment, couldadversely affect the City of Bunkie, Louisiana's ability to record, process, summarize, and reportfinancial data consistent with the assertions of management in the financial statements. Reportableconditions are described in the accompanying Schedule of Findings and Questioned Costs as items2000-01 and 2000-02.

MEMBER OFAMERICAN INSTITUTEOF'CERTIFIED PUBLIC ACCOUNTANTS * SOCIETYOF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS

-22-


September 75, 2000

A material weakness is a condition in which the design or operation of one or more of the internalcontrol components does not reduce to a relatively low level the risk that misstatements in amountsthat would be material in relation to the financial statements being audited may occur and not bedetected within a timely period by employees in the normal course of performing their assignedfunctions. My consideration of the internal control over financial reporting would not necessarilydisclose all matters in the internal control over financial reporting that might be reportable conditionsand, accordingly, would not necessarily disclose all reportable conditions that are also considered tobe material weaknesses. 1 noted no matters involving the internal control over financial reporting andits operation that I consider to be material weaknesses.

This report is intended for the information of management, and is not intended to be and should notbe used by anyone other than the specified parties. However, this report is a matter of public recordand its distribution is not limited.

KENNETH J.BREAUXCERTIFIED PUBLIC ACCOUNTANT

-23-


305 WALNUT STREET • P.O. BOX 140BUNK1E, LOUISIANA 71322

PHONE (318) 346-2652FAX (318) 346-6547

KENNETH J. BREAUX. C.P.A.ROBERT E. MORROW, C.P.A

REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJORPROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH

OMB CIRCULAR A-133


City of Bunkie, Louisiana

COMPLIANCEI have audited the compliance of the City of Bunkie, Louisiana with the types of compliancerequirements described in the U. S. Office of Management and Budget (OMB) Circular A-133Compliance Supplementthat are applicable to its major federal programs for the year ended June 30,2000. The City of Bunkie's major federal programs are identified in the Summary of Auditor'sResults section of the accompanying Schedule of Findings and Questioned Costs. Compliance withthe requirements of laws, regulations, contracts and grants applicable to each of its major federalprograms is the responsibility of the City of Bunkie's management. My responsibility is to express anopinion on the City of Bunkie's compliance based on my audit.

I conducted my audit of compliance in accordance with generally accepted auditing standards; thestandards applicable to financial audits contained in Government Auditing Standards, issued by theComptroller General of the United States; and OMB Circular A-133, Audits of States, LocalGovernments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that Iplan and perform the audit to obtain reasonable assurance about whether noncompliance with the typesof compliance requirements referred to above that could have a direct and material effect on a majorfederal program occurred. An audit includes examining, on a test basis, evidence about the City ofBunkie's compliance with those requirements and performing such other procedures as I considerednecessary in the circumstances. I believe that my audit provides a reasonable basis for my opinion.My audit does not provide a legal determination on the City of Bunkie's compliance with thoserequirements.

In my opinion, the City of Bunkie, Louisiana complied, in all material respects, with the requirementsreferred to above that are applicable to each of its major federal programs for the year ended June 30,2000.

INTERNAL CONTROL OVER COMPLIANCEThe management of the City of Bunkie, Louisiana is responsible for establishing and maintainingeffective internal control over compliance with requirements of laws, regulations, contracts and grants

MEMBER OFAMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS * SOCIETY OF'LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS

-24-


September 15,2000

applicable to federal programs. In planning and performing my audit, I considered the City ofBunkie's internal control over compliance with requirements that could have a direct and materialeffect on a major federal program in order to determine my auditing procedures for the purpose ofexpressing my opinion on compliance and to test and report on the internal control over compliance inaccordance with OMB Circular A-133.

My consideration of the internal control over compliance would not necessarily disclose all matters inthe internal control that might be material weaknesses. A material weakness is a condition in whichthe design or operation of one or more of the internal control components does not reduce to arelatively low level the risk that noncompliance with applicable requirements of laws, regulations,contracts and grants what would be material in relation to a major federal program being audited mayoccur and not be detected within a timely period by employees in the normal course of performingtheir assigned functions. I noted no matters involving the internal control over compliance and itsoperation that I consider to be material weaknesses.

This report is intended solely for the information and use of management, the City Council, and federalawarding agencies and pass-through entities and is not intended to be and should not be used byanyone other than these specified parties.

KENNETH J. BREAUXCertified Public Accountant

-25-

CITYOFBUNKIE, LOUISIANASCHEDULE OF EXPENDITURES OF FEDERAL A WARDS


FEDERAL GRANTOR / Pass-through Grantor / Program Title

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENTPass-through the State of Louisiana, Division of Administration,Community Development Block Grant

FederalCFDANo.

14.228

FederalExpenditures

$ 846,488

DEPARTMENT OF TRANSPORTATIONPass through the State of Louisiana, Department of Transportationand Development, Highway Planning and Construction 20.205 360,462

DEPARTMENT OF JUSTICEPublic Safety Partnership and Community Policing Grants (COPS) 16.710 25,644

TOTAL FEDERAL FUNDS EXPENDED $ 1,232,594

NoteThe schedule of expenditures of federal awards was prepared in conformity with generally accepted accountingprinciples for governmental units. See the accompanying notes to the financial statements for further details.

-26-

CITY OF BUNKIBSchedule of findings and Questioned CostFor the Year Ended June 3O9 2OOO

PART f - SUMMARY OF AUDITOR'S REST!! /TS;• The Independent Auditor's Report on the primary government financial statements for the City of Bunkie as of June

30, 2000 and for the year then ended expressed an unqualified opinion.• Reportable conditions were noted in the audit and none of the reportable conditions were considered to be a material

weakness.• The results of the audit disclosed no instances of noncompliance that are considered to be material to the financial

statements of the City of Bunkie.• The Independent Auditor's Report on Compliance with Requirements Applicable to Each Major Program and

Internal Control over Compliance in Accordance with OMB Circular A-133 expressed an unqualified opinion oncompliance for major programs.

• Ite audit did not disclose any audit findings which are required to be reported under Section 510 of Circular A-133.• Major programs for the year ended June 30, 2000 are presented as follows:

14.228 Community Development Block Grants/State's Program20.205 Highway Planning and Construction

• A threshold of $300,000 was used for distinguishing between Type A and Type B programs for purposes ofidentifying major programs.

• The City of Bunkie was not considered to be a low risk auditee as defined by the OMB Circular A-133.

PART If - FINDINGS RELATING TO THE FINANCIAL STATEMENTS WHIP! AREREQIT^RED TO BE REPORTED m ACCORDANCE WITH GENERAU,V ACCEPTEDGOVERNMENTAL AUDITING STANDARDS!

Finding Tfti, 2000-01 - A«f mipltrtration of Public Funds:The State Constitution places certain restrictions on the use of municipal resources. In general, the City cannot legallyloan, pledge, or donate anything of value to any person, association, or corporation. Periodically, the City adjusts utilitybillmgs to (xrrect the effects of nialfimcticmingcqui^ Transactions of this naturecould be construed as a violation of the State Constitutioa The City has not adopted any formal policy addressing thehandling of adjustments to utility bills. I suggest adopting a policy regarding the adjustment of utility bills that is basedon consultation with legal counsel.

Finding No. 2000-02 - Occupational License*:During my review of the revenues collected for occupational licenses issued, I noted that management does not reconcilerevenues received to licenses issued on a regular basis. I also noted that there is inadequate segregation of duties in thisarea, as assistant clerks who collect payments are also allowed to post these payments and issue the licenses.

- FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS WHTdTSHALL INCLUDE AUDIT FINDINGS AS DEFINED BY OMB dRCTITLAR A-1• N/A

-27-

CITY OF BUNKIEManagement's Corrective Action PlanFor the Year Ended June 3O9 2OOO

SECTION IINTERNAL CONTROL AND COMPLIANCE MATERIAL TO THE FINANCIAL STATEMENTS.

flinging NO. 2000-01 ( Finding 99-2)

Hie State Constitution places certain restrictions on theuse of municipal resources. In general, the City cannotlegally loan, pledge, or donate anything of value to anyperson, association, or corporation. I noted certaintransactions that are reductions of bills for utility servicesdelivered to customers. Transactions of this nature couldbe interpreted as a violation of constitutional provisions. Irecommend that management adopt policies regardingadjustments of utility bills and, furthermore, refer anytransactions that might potentially violate theseconstitutional provisions to legal counsel.

Ffcdinff No. 2000-02During my review of occupational licenses, I noted thatthe Clerk does not reconcile the licenses issued toamounts collected on a regular basis. I also noted thatthere is not sufficient segregation of duties in this area toprevent employees from issuing licenses and receivingpayments.

ResponseManagement has begun taking steps to address this issue.These steps will include familiarization of City employeeswith the provisions and requirements imposed by Article7, Paragraph 14 of the State Constitution. A policy willbe drafted that will clearly indicate the types oftransactions that are eligible for adjustments and remediesfor those transactions not meeting the requirements of theconstitutional provisions. Furthermore, all transactionsthat may violate these provisions will be immediatelyreferred to legal counsel.

ResponseThe City has reviewed the procedures in this area andcorrective action will be implemented immediately. Suchcorrective measures will include a regular reconciliationof licenses issued with amounts collected, and measureswill be taken to properly segregate the duties of theassistant clerks.

SECTION nINTERNAL CONTROL AND COMPLIANCE MATERIAL TO FEDERAL AWARDS

No findings were reported in the schedule of findings andquestioned costs.

Response - N/A

SECTION HIMANAGEMENT LETTER

No findings were reported in the schedule of findings andquestioned costs.

Response - N/A

-28-

CIT7OFBUNKIESchedule of Prior Year Findings and Questioned Cost

the Year Ended June 3O, 2OOO

SECTION IINTERNAL CONTROL AND COMPLIANCE MATERIAL TO THE FINANCIAL

STATEMENTS.Findings

99-1. Segregation of DutiesAdministrative personnel responsible for collectingutility payments also have the authority to adjustutility accounts. Employees who collect paymentsshould be prohibited from posting any adjustmentsor payments to the billing records.

of Public FundsThe State Constitution places restrictions on the useof municipal resources. In general, the City cannotlegally loan, pledge, or donate anything of value toany person, association, or corporation. I notedcertain transactions that could be interpreted as aviolation of these provisions. I recommend thatmanagement adopt policies regarding utilityadjustments and refer any potential violations tolegal counsel.

Response

Resolved - Administrative procedures have beenrestructured in a manner that allows for propersegregation of duties in this area. Specifically,employees who collect utility payments are nolonger allowed to post or otherwise adjust utilitybilling records.

Unresolved (See Finding 20004)2) - Managementhas not adopted any policy regarding theadjustments of utility billings, and furthermore,does not refer transactions that represent potentialviolations to legal counsel.

SECTION HINTERNAL CONTROL AND COMPLIANCE MATERIAL TO FEDERAL AWARDS

No findings of the nature were reported as a resultof the previous audit.

Response - N/A

SECTION mMANAGEMENT LETTER

No findings of the nature were reported as a resultof the previous audit.

Response - N/A

-29-

SUPPLEMENTAL SECTION

COMBINING FINANCIAL STATEMENTS AND SCHEDULES

GENERAL FUND

General Fund - The main operating fund of the City. It is used to account for all financial resourcestraditionally associated with government except those required to be accounted for in another fund.

-30-

CITY OFBUNKIE, LOUISIANAGenera! Fund

Comparative Balance SheetsJune 30, 2000 and 1999

2000 1999

Assets

Cash and cash equivalents $ 493,428 $ 507,288Receivables 59,199 49,155Due from other funds 69,191 29,521Due from other governments 54,895 49,623Restricted assets - cash 75,702 49,538

Total Assets $ 752,415 $ 685,125

Liabilities and Fund Balance

Liabilities:Accounts payable $ 66,307 $ 83,265

Due to other funds 6,980 -

Total liabilities 73,287 83,265

Fund Balance:Reserved for escrow $ 75,702 $ 49,538Unreserved 603,426 552,322

Total fund balance 679,128 601,860

Total Liabilities and Fund Balance $ 752,415 $ 685,125

-31-

CITY OFBUNKIE, LOUISIANAGeneral Fund

Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and ActualFor the Year Ending June 30, 2000 with Comparative Totals for 1999

Revenues:TaxesLicenses and permitsIntergovernmentalUtility agreementsOther charges

Total Revenues

Expenditures:General governmentFire protectionPolice protectionHighways and streetsRecreationAirportAnimal control

Total Expenditures

Excess (deficiency) of revenuesover expenditures

Other financing sources (uses):Operating transfers inOperating transfers out

Total other financing sources

Excess (deficiency) of revenues andother sources over expenditures andother uses

Fund balance, beginning

Fund balance, ending

BudgetGAAP

$ 321,900115,650633,400156,300.88,650

1,315,900

549,946289,600465,200238,14557,180

356,30010,165

1,966,536

(650,636)

589,000-

589,000

(61,636)

601,860

$ 540,224

2000Actual

$ 382,154126,459649,925160,71972,003

1,391,260

479,958284,936458,308226,597

51,711346,358

9,7941,857,662

(466,402)

550,650(6,980)

543,670

77,268

601,860

$ 679,128

VarianceFavorable

(Unfavorable)

$ 60,25410,80916,5254,419

(16,647)75,360

69,9884,6646,892

11,5485,4699,942

371108,874

184,234

(38,350)(6,980)

(45,330)

138,904

.

$ 138,904

1999Actual

$ 349,036116,668372,912150,48066,802

1,055,898

402,941270,986412,466250,293

74,814101,221

7,0%1,519,817

(463,919)

612,209(8,350)

603,859

139,940

461,920

$ 601,860

-32-


Schedule of Revenues - Budget and ActualFor the Year Ended June 30, 2000 with Comparative Totals for 1999

Taxes:Ad valorem taxes and interestHotel /motel taxPayments in lieu of taxesSales taxes - .5%

Total taxes

Licenses and permitsOccupational licensesBuilding permitsChain store taxElectrical inspections

Total licenses and permits

Intergovernmental:Drivers license office feesCasino and video poker proceedsFines -City CourtTobacco taxesBeer taxesFire insurance taxesAirport improvementsFire Protection District #2 taxesLaw enforcement grants

Total intergovernmental

Utility agreements:Cleco franchiseEntex franchiseCable TV franchise

Total utility agreements

Other charges:MiscellaneousGrant - playground equipmentGroup insurance refundsMiscellaneous licensesInterest and penaltiesSummer recreation program feesRents

Total other charges

Total Revenues

BudgetGAAPBasis

$ 71,30019,30021,300

210,000321,900

111,0003,5001,150

•115,650

12,000140,00013,00025,60011,70012,900

330,70053,70033,800

633,400

114,20028,10014,000

156,300

40,95015,00011,300

-11,5007,9002,000

88,650

$ 1,315,900

2000Actual

$ 77,35120,57222,299

261,932382,154

122,0123,2671,160

20126,459

13,436166,26417,86725,621

9,87513,042

320,50953,67629,635

649,925

118,25728,13314,329

160,719

36,047-

11,432750

14,0697,3632,342

72,003

$ 1,391,260

VarianceFavorable

(Unfavorable)

$ 6,0511,272

99951,93260,254

11,012(233)

1020

10,809

1,43626,2644,867

21(1,825)

142(10,191)

(24)(4,165)16,525

4,05733

3294,419

(4,903)(15,000)

132750

2,569(537)342

(16,647)

$ 75,360

1999Actual

$ 75,04419,34321,336

233,313349,036

110,4003,3842,255

629116,668

12,798136,402

8,55225,62111,39012,87481,38156,56727,327

372,912

111,63626,59812,246

150,480

27,86410,0509,7391,8438,6897,1021,515

66,802

$ 1,055,898

-33-

CITY OF BUNKIE, LOUISIANAGeneral Fund

Schedule of Expenditures - Budget and ActualFor the Year Ended June 30, 2000 with Comparative Totals for 1999

General government:City court costsMayor's salaryAldermen's salariesOffice salariesJanitorial salariesMayor's expense allowanceMaintenancePostage and suppliesTelephone and utilitiesMiscellaneousCapital outlayCollection feesContingencies - ad valorem taxesInsurance - workman's comp.Insurance - generalInsurance deductibles and claimsInsurance - groupPayroll taxesRetirementJanitorial expensesDues and publicationsDrivers license officeAudit and legalAssessor's compensationPrinting and publicationsElection expensesHealth departmentConferences and conventionsWarehouseDrug testing expense

Total general government

BudgetGAAPBasis

$ 37,80021,60018,00051,40012,8001,200

20,00014,00024,0008,200

40,000-

75,9461,700

87,000-

65,00016,0006,0001,0003,0007,000

17,0002,6004,700

-5,6006,000

-2,400

549,946

2000Actual

$ 38,29721,60017,85050,74512,4801,2007,667

14,00424,5036,856

53,5542,289

-1,712

88,031-

64,60416,2268,044

8602,183

10,06314,9862,8495,966

795,5615,302

-2,447

479,958

VarianceFavorable

(Unfavorable)

$ (497)-150655320-

12,333(4)

(503)1,344

(13,554)(2,289)75,946

(12)(1,031)

-396

(226)(2,044)

140817

(3,063)2,014(249)

(1,266)(79)39

698-(47)

69,988

1999Actual

$ 28,14621,60018,00043,81411,2531,200

12,29613,57119,7682,613

20,507--

1,23774,891

31962,30014,1905,0901,8892,2217,076

15,6292,5134,9745,0405,2983,681

8832,942

402,941

-34-

CITY OF BVNKIE, LOUISIANAGeneral Fund


Fire department:SalariesSuppliesEquipment repairsGas and oilPhone and utilitiesVolunteer firemenTrainingCapital outlayInsurance - worker's comp.Insurance - generalInsurance - groupMiscellaneousState unemployment expenseRetirement

Total fire department

Police department:SalariesSuppliesEquipment repairsGas and oilTelephone and utilitiesMedical examsPrisoner mealsTraining schoolsMiscellaneousCapital outlayInsurance - worker's comp.RetirementGroup insuranceState unemployment

Total police department

BudgetGAAPBasis

154,00015,50017,0008,0007,0009,000

60022,50014,600

-32,000

-400

9,000$ 289,600

276,50013,00015,00018,0006,000

-2,4005,500

10039,00020,20017,00052,000

500$ 465,200

-35-

2000Actual

144,43818,17220,723

7,6317,0249,990

7169,949

14,7838,317

31,715106408

10,964$ 284,936

274,47612,37312,63217,4875,914

512,2073,605

34538,41620,58817,10052,473

641$ 458,308

VarianceFavorable

(Unfavorable)

9,562(2,672)(3,723)

369(24)

(990)(116)

12,551(183)

(8,317)285

(106)

(8)(1,964)

$ 4,664

2,024627

2,36851386

(51)193

1,895(245)584

(388)(100)(473)(141)

$ 6,892

1999Actual

144,26420,72216,9306,1256,921

10,2801,1525,515

13,1748,540

29,251180154

7,778$ 270,986

246,58813,17315,91412,3255,823

7843,859

8782,461

28,33516,35614,43051,359

181$ 412,466



Street departmentSalariesSuppliesEquipment repairsMiscellaneousGas and oilTelephone and utilitiesCapital outlayAsphah and culvertsDrainage and sidewalk repairsDemolitionInsurance - worker's compInsurance - groupRetirementWarehouse expensesState unemployment expense

Total street department

Recreation departmentSalariesSuppliesRepairsGas and oilUmpiresLittle league expensesMiscellaneousCapital outlayInsurance - worker's comp.State unemployment expense

Total recreation department

Airport department:SuppliesRepairsFuel purchasesCapital outlayTelephone and utilitiesMiscellaneousInsuranceNon-directional beacon

Total airport department

Animal control department:SalariesSuppliesHolding pen repairsUtilitiesInsurance - workers oompState unemployment expense

Total animal control department

BudgetGAAPBasis

73,14530,0004,5003,5006,000

32,50018,0005,0009,000

10,00017,50022,000

5,8001,000

200$ 238,145

6,70016,2002,5001,2503,6007,400

30019,000

20030

$ 57,180

7,0002,0008,000

332,5002,000

1001,2003,500

$ 356,300

7,2002,400

100250200

15$ 10,165

2000Actual

70,68731,5423,9845,3345,835

33,96216,4904.8865,311

70017,96821,784

6,965913236

$ 226,597

6,71318,2504,8432,3572,5361,721

30014,504

46819

$ 51,711

6,4085,1478,570

320,5092,061

430-

3,233$ 346,358

6,6522,677

8318518116

$ 9,794

VarianceFavorable

(Unfavorable)

2,458(1,542)

516(1,834)

165(1,462)1,510

1143,6899,300(468)216

(U65)87

(36)S 11,548

(13)(2,050)(2,343)(MOT)1,0645,679

-4,496(268)

11$ 5,469

592(3,147)

(570)11,991

(61)(330)

1,200267

$ 9,942

548(277)

176519(1)

$ 371

1999Actual

112,42322,4043,8481,4452,910

30,7674,0796,8265,7101,500

23,86030,0804,441

--

$ 250,293

6,01115,4693,089

6402,3577,253

60038,998

35740

$ 74,814

7,14210,0353,896

73,9701,777

-2,4511,950

S 101,221

4,2982,371

2025411439

$ 7,096

-36-

SPECIAL REVENUE FUNDS

The Special Revenue Funds account for the accumulation and disbursement of restricted resources.The City has the following Special Revenue Funds:

Sales Tax Fund - The sales tax fund is used to account for the accumulation of resources from a1.5% sales tax assessment levied by the City.

Surplus Bond Fund - The surplus bond fund is used to account for funds remaining in a bond reservefund. The original bond issue has been paid out, and the resources are restricted to expendituresconsistent with the original indebtedness.

-37-

CITYOF BUNKIE, LOUISIANASpecial Revenue Funds

Combining Balance SheetsJune 30, 2000with Comparative Totals for 1999

SalesTax Fund

SurplusBond Fund 2000

Totals1999

682,389111

62,370122,238 52,383

$ 682,389717

62,370174,621

$ 867,714 $ 52,383 $ 920,097

$ 422,019

62,027170,469

$ 654,515

Assets

Cash and cash equivalentsReceivablesDue from other governmentsRestricted assets - cash

Total Assets

Liabilities and Fund Balances

Liabilities:Due to other funds

Total liabilities

Fund balances:ReservedUnreservedTotal fund balances

Total Liabilities and Fund Balances $ 867,714 $ 52,383 $ 920,097 $ 654,515

$ 59,22259,222

122,238686,254808,492

$-

52,383

52,383

$ 59,22259,222

174,621686,254860,875

$ 20,67620,676

170,469463,370633,839

-38-

CITY OF BUNKIE, LOUISIANASpecial Revenue Funds

Combining Statement of Revenues, Expenditures, and Changes in Fund BalancesFor the Year Ended June 30, 2000 with Comparative Totals for 1999

Revenues:TaxesInterest

Total revenues

ExpendituresCollection expensePaying agent feesMiscellaneous

Total expenditures

Excess (deficiency) of revenues overexpenditures

Other financing uses:Operating transfers out

Excess (deficiency) of revenues overexpenditures and other uses

Fund balance, beginning

Fund balance, ending

SalesTax Fund

$ 523,86519,665

543,530

14,634

67515,309

528,221

302,432

225,789

582,703

$ 808,492

SurplusBond Fund

$1,2471,247

-

-

1,247

1,247

51,136

$ 52,383

Totals2000

$ 523,865 $20,912

544,777

14,634

67515,309

529,468

302,432

227,036

633,839

$ 860,875 $

1999

473,87016,107

489,977

11,01530526

11,346

478,631

348,025

130,606

503,233

633,839

-39-

CAPITAL PROJECTS FUNDS

The Capital Projects Funds are used to account for the accumulation and disbursement of resourcesused in the construction of capital assets. The City has the following Capital Projects Funds:

1996 LCDBG Fund - This fund is used to record the capital activity associated with a waterlinereplacement project in the amount of $225,000 for repair and replacement of a water transmissionmain to the City. This project is funded by an LCDBG grant from the State of Louisiana.

1997 LCDBG Fund - This fund is used to record the capital activity associated with a sewer systemupgrade in the amount of $998,903. This project is funded by an LCDBG grant from the State ofLouisiana.

ISTEA Fund - This fund is used to record the capital activity associated with the renovations to thedepot and downtown area. This project is funded by a grant from the State of Louisiana.

-40-

CITY OF BUNK1E, LOUISIANACapital Projects Funds

Combining Balance Sheets^_____ June 30, 2000

Assets

Cash and cash equivalentsDue from other fundsDue from other governments

Total Assets

Liabilities and Fund Balances

Liabilities:Construction payable

Total liabilities

Fund balances:Unreserved

Total fund balances

1996 LCDBG 1997 LCDBGFund Fund

38

38

3838

Total Liabilities and Fund Balances $ 38

1STEAFund

106,980

29,260

1 $ 36,250

Total

496,980

29,260

$ 36,289

$ 36,240 $ 36,240-

11

36,240

1010

36,240

4949

1 $ 36,250 $ 36,289

-41-

CITYOF BUNKIE, LOUISIANACapital Projects Funds

Combining Statement of Revenues, Expenditures, and Changes in Fund BalancesFor the Year Ended June 30, 1999

1996LCDBGFund

Revenues:Intergovernmental $In-kind services

Total revenues

Expenditures:AdministrativeConstructionEngineeringArchitect feesOther - local match

Total expenditures

Excess (deficiency) of revenues overexpenditures

Other financing sources (uses):Operating transfers in

Total other financing sources (uses):

Excess (deficiency) of revenues and othersources over expenditures and other uses

Fund balance, beginning 3 8

Fund balance, ending $ 38

1997LCDBG ISTEAFund Fund

$ 846,488 $ 360,46259,344

846,488 419,806

18,771714,387 355,422113,330

5,04066,324

846,488 426,786

(6,980)

6,980

6,980

-

1 10

$ 1 $ 10

Total

$ 1,206,95059,344

1,266,294

18,7711,069,809

113,3305,040

66,3241,273,274

(6,980)

6,980

6,980

-

49

$ 49

-42-

ENTERPRISE FUNDS

The Enterprise Funds account for operations that are financed and operated in a manner similar toprivate business enterprises. The intent of the City is that costs of providing the goods and servicesto the general public on a continuing basis will be financed or recovered through user charges.

Water System Fund and Sewer System Fund - The City maintains a Water System Fund and a SewerSystem Fund. Activities of these funds include administration, operation, and maintenance of thefacilities and billing and collection activities. These funds also account for the accumulation ofresources for, and the payment of, long-term debt principal and interest on outstanding indebtedness.All costs are financed through user charges to utility customers, and are reviewed and adjustedperiodically if necessary to ensure the integrity of the fund.

-43-

CITYOFBUNKIE, LOUISIANAEnterprise Fund

Combining Balance SheetJune 30, 2000 with Comparative Totals for 1999

AssetsCurrent assets:

Cash and cash equivalentsReceivables, net of allowanceDue from other governmentsTotal current assets

Restricted assets:Cash

Property, plant, and equipment:Construction in progressWell sites and right of wayTreatment plant and linesDepreciable assetsAccumulated depreciationTotal property, plant, and equipment

Total Assets

Liabilities and Fund EquityCurrent liabilities:

Accounts payableAccrued salariesPayable from restricted assets:

Bonds payable - current portionAccrued interest

Customer meter depositsTotal current liabilities

Other liabilities:Due to other funds

Long-term debt:General obligation bonds payableRevenue bonds payable

Total liabilities

Fund Equity:Contributed capitalRetained earningsReserved for bond retirementUnreservedTotal fund equity

Total Liabilities and Fund Equity

WaterFund

$ 45,32163,131

108,452

327,022

45,545

2,442,695(1,665,140)

823,100$ 1,258,574

$ 5,945702

85,02491,671

101,000192,671

940,736

327,022(201,855)

1,065,903$ 1,258,574

SewerFund

$ 311,65644,595

356,251

310,743

5,256,917159,503

(805,161)4,611,259

$5,278,253

$ 10,7901,003

79,631102,631

194,055

9,969

2,159,597

2,363,621

2,474,635

128,481311,516

2,914,632$5,278,253

Totals2000

$ 356,977 $107,726

464,703

637,765

45,5455,256,9172,602,198

(2,470301)5,434,359

$ 6,536,827 $

$ 16,735 $1,705

79,631102,63185,024

285,726

9,969

2,159,597101,000

2,556,292

3,415,371

455,503109,661

3,980,535$ 6,536,827 $

1999

298,919108,67035,705

443,294

587,275

151,76145,546

4,258,0452,600,232

(2,300,929)4,754,6555,785,224

48,0042,708

75,839106,10777,375

310,033

8,845

2,239,228147fOOO

2,705,106

2,566,588

405,329

108,2013,080,1185,785,224

-44-

CITY OF BUNKIE, LOUISIANAEnterprise Fund

Combining Statement of Revenues, Expenses, and Changes in Retained EarningsFor the Year Ended June 30, 2000 with Comparative Totals for 1999

Operating revenues:Charges for servicesDelinquent and other chargesTotal operating revenues

Operating expenses:Salaries and wagesEmployee benefitsChemicals and suppliesRepairs and maintenanceUtilities and telephoneGasoline and oilDepreciationOther operating expensesInflow and infiltration

Total operating expenses

Operating income

Non-operating revenues (expenses)Interest incomeInterest expenseLoss on disposal of assetsAd valorem taxes

Total non-operating revenues (expenses)

Income before operating transfers

Operating transfers in (out)Sales Tax Fund

General FundTotal transfers in (out)

Net income (loss)

Retained earnings, beginning

Retained earnings, ending

WaterFund

$ 419,98932,217

452,206

81,05820,47119,26410,45430,384

1,78239,24610,935

-213,594

238,612

10,610(7,350)

--

3,260

241,872

38,432(274,567)(236,135)

5,737

119,430

$ 125,167

-45-

SewerFund

$ 300,9001,000

301,900

74,97730,46223,0698,429

33,0222,983

134,53625,22846,575

379,281

(77,381)

13,053(112,277)

(3,808)238,393135,361

57,980

-(12,083)(12,083)

45,897

394,100

$439,997a

Totals2000

$ 720,889 $33,217

754,106

156,03550,93342,33318,88363,4064,765

173,78236,16346,575

592,875

161,231

23,663(119,627)

(3,808)238,393138,621

299,852

38,432(286,650)(248,218)

51,634

513,530

$ 565,164 $

1999

707,55731,242

738,799

94,97341,51943,86014,34956,7144,540

191,50722,00364,819

534,284

204,515

21,762(125,605)

-232,459128,616

333,131

-(322,209)(322,209)

10,922

502,608

513,530

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