city of oakdale audit

8/19/2019 City of Oakdale audit

1/76

CITY OF OAK DALE, LOUISIANA

ANNUAL FINANCIAL REPORT

AND INDEPENDENT

AUDITORS' REPORT

YEAR ENDED JUNE

30,

2015

Royce

T. Scimemi

CPA y A F A C

Oberlin, LA


2/76

TABLE OF CONTENTS

MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)

INDEPENDENT

AUDITORS' REPORT

BASIC

FINANCIAL

STATEMENTS:

Pages

3-12

13-14

GOVERNMENT-WIDE

FINANCIAL

STATEMENTS (GWFS)

Statement of Net P osit ion

Statement

of Activities

FUND

FINANCIAL STATEMENTS

(FFS)

Balance Sheet - Governmental Funds

Reconciliation of

Governmental Funds

Balance Sheet to Statement

of

Net Po sit ion

Statement of Revenues, Expen ditures and Changes

in Fund Balance -

Governm ental Funds

Reconcil iat ion of Governm ental Statement of Revenues, Expenditures

and

Changes in

Fund B alance

with Statement

of

Activities

Statement of

Net Posit ion

-

Proprietary

Fund

Statement of

Revenues, Expenses and Changes

in

Net

Position -

Proprietary

Fund

Statement

of Cash

Flows - Proprietary

Fund

NOTES TO BASIC FINANCIAL STATEMENTS

REQUIRED SUPPLEMENTARY

INFORMATION

Budgetary

Comparison Schedules:

General Fund

Sales Tax Special Revenue

Fund

Gam ing Special Revenue

Fund

Fire Department Special Revenue Fund

Schedules of City's Proport ionate Share

of

Net

Pension Liabilities

Schedules of City's

Pension

Plan Contributions

NOTES TO REQUIRED

SUPPLEMENTARY

INFORMATION

OTHER SUPPLEMENTARY

INFORMATION

Statement of Operating Expenses by Department-Proprietary Fund

Schedule of Number of Uti li ty C ustomers (Unaudited)

Schedule of Insurance in Force

Schedule of Com pensation Paid

to

Mayor

and

Council Members (Un audited)

Schedule of Compen sation,

Benefits

and Other Payments

to

Chief Exe cutive Officer

INDEPENDENT AUDITORS REPORT ON INTERNAL CONTR OL OVER FINANCIAL

REPORTING AND ON

COMPLIANCE

AND

OTHER MATTERS

BAS E D ON

AN

AUDIT OF

FINANCIAL

STA TEM EN TS

PERFORMED IN

ACCORDANCE WITH

GOVERNMENT AUDITING

STA N D A R D S

SCHEDULE OF

FINDINGS

AND

RESPONSES

MANAGEMENT'S CORRECTIVE ACTION PLAN FOR CURRENT

YEAR

AUDIT FINDINGS

AND

RESPONSES (UNAUDITED)

SUMMARY

SCHEDULE OF

PRIOR YEAR

AUDIT FINDINGS

17

18

2 1

22

23

24

25

26

2 7 - 2 8

2 9 - 4 9

5 1 - 5 4

55

56

57

5 8 - 6 0

6 1 - 6 3

64

66

6 7

6 8

69

70

7 1 - 7 2

7 3 - 7 4

75

76


3/76

CITY OF OAKDALE, LOUISIANA

Management's Discussion and Analysis

Within this section of

the

City

of

Oakdale, Louisiana's annual financial report,

the C ity's

management

is

pleased

to provide

this

narrative discussion

and

analysis of the financial activities of

the

City

for the

fiscal

year

ended June

30, 2015. The C ity's

financial

performance is discussed

and

analyzed within the context of the accompanying

financial statements and

disclosures

following this section.

FINANCIAL HIGHLIGHTS

•

The City's assets

exceeded

its

l iabilities by $5,888,63 0 (ne t position) for

the fiscal

year reported.

• Total revenues

of

$4,596,127 exceeded

its

total expenses

of

$4,432,373 w hich resulted

in

a

current

year

surplus

of

$163,754.

In comparison,

for the previous

year

ended June 30, 2014, the

City's

total

revenues

of $4,530,382 exceeded its total expenses of $4,351,237, yielding

a

surplus of $179,145.

• Total

net po sit ion

are comprised of

the

following:

(1) Capital assets, net of related debt, of $8,070,355 include property and equipment, net of accumulated

depreciation,

and

reduced for outstanding debt related

to the

purchase or construction of capital

assets.

In

comparison,

as

of June

30, 2014, the City's

net capital assets were

$8,314,768.

(2)

Forthefiscalyearsended June

30,2015

and 2 014, respectively, net position of $179,819 and $8,081

were

restricted by

constraints imposed from outside

the City

such

as

debt covenants,

grantors, laws,

or regulations.

(3) Unrestricted

net

position, representing

the

port ion of net

position

available

to

maintain the

City's

continuing obligations

to

citizens

and

creditors, am ounted

to

deficits

of

$2,361,544 and $23,368 for

the f iscal years ended Jun e 30, 20 15 an d 2014, respectively.

• The

City's

governmental funds reported total deficit ending

fund

balance of $152,308 this

year.

This

compares

to the prior

year ending deficit

fund

balance of $415,527

reflecting a

deficit reduction

of

$263,219

during

the

current

year.

For

the prior year

ended Jun e 30, 2014, an increase of

$213,256

was

reported in

the total

ending

fund

balance.

All positive fund

balances are assigned or

restricted to

particular

uses.

• At the end of the current fiscal year, unassigned fund balance for the General Fund was a deficit

of

$586,802, or (22%) of total General Fund expenditures and (21%) of total General Fund revenues

including other f inancing sources. In comparison, for the fiscal year

ended

June 30, 2014, unassigned

fund balance

for the General

Fund was

a deficit of $672,47 2, or (22%) of

total General

Fund expenditures

and

(21%)

of

total General Fund revenues including other f inancing sources.

• Overall,

the City improved on a weak

financial posit ion and

is

continuing

to work to improve on this

financial position.


4/76

CITY OF OAKD ALE, LOUISIANA

Management's Discussion

and

Analysis

(Continued)

The above f inancial highl ights

are

explained

in

more detai l

in

the

"financial analysis" section

of

this document.

OVERVIEW OF FINANCIAL STATEMENTS

This Management's Discussion and Analysis document introduces the

City's

basic financial statements, which

include: (1) government-wide f inancial

statements,

(2)

fund

financial statements,

and

(3) notes to

the

basic

financial statements. The City also includes in this report additional informa tion to supplement the basic financial

statements. Comparative data is presented w hen available.

GOVERNMENT-WIDE

FINANCIAL

STATEMENTS

The City's annual report includes

two

government-wide f inancial statements.

These

statements provide both

long-term and short-term

information

about the City's overall financial status. Finan cial reporting

at

this level uses

a

perspective similar

to that found in the

private sector with

its

basis

in

accrual accounting and el imination

or

reclassification of activities between funds.

The first

of these

government-wide

statements is the Statement

of

Net Position.

This

is the government-wide

statement of

position

presenting information that includes all of the

City's

assets and liabilities, w ith the difference

reported as net position. Over t ime, increases or decreases in net

position

may serve as a useful indicator of

whether

the

financial

posit ion of the

City as

a whole is improving

or deteriorating.

Evaluation of

the

overall

health

of the City would

extend

to other non-financial facto rs such as diversification o f the taxpayer base, or the condition

of City infrastructure

in

addition to the financial information provided

in

this report.

The second governm ent-wide statement is the Statement of Activities, which reports how the City's net position

changed during the current fiscal year. All current year revenues and expenses are

included

regardless of when

cash is received or

paid.

An important purpose of the design of the statement of activities is to show the f inancial

reliance of the City's distinct

activities

or functions on revenues provided

by

the City's taxpayers.

Both government-wide

financial

statements distinguish governmental activities of the City

that

are principally

supported

by sales

and ad

valorem taxes from business-type activit ies

that are

intended

to recover

all or

a

significant portion of their costs through user

fees

and charges. G overnmental

activities

principally include general

government, public

safety and streets. Business-type activities include

the

water

and

sewer systems.

The government-wide

financial

statements are presented on pag es 17

and

18 of

this

report.

FUND

FINANCIAL STATEMENTS

A fund is an accountability unit

used

to maintain control over resources segregated for specific activities or

objectives. The City uses funds to ensure and demonstrate compliance with finance-related laws and regulations.

Within

the basic financial

statements,

fund

financial statements focus

on the

City's

most

significant funds rather

than the City as

a

whole. Major funds are separately reported

while

all others are combined into

a

single,

aggregated presentation. There

is

no

individual

fund

data for n on-major

funds

to be

reported

in

any combining

statements.


5/76

CITY OF OAKDALE, LOU ISIANA

Man agem ent's Discussion and Analysis (Continued)

The C ity

has

two

kinds

of

funds:

Governmental funds are

reported

in the

fund

financial statements

and

encompass the same functions reported

as

governmental

activities in

the government-wide

financial

statements.

However,

the

focus

is very different

with

fund

statements

providing

a

distinctive view of

the City's governmental

funds.

These statements report short-term

fiscal accoun tability

focusing on the use

of spendable resources and balances of spend able resources available

at

the

end

of

the

year.

They

are

useful

in evaluating annual f inancing requirements

of

governmental programs

and

the comm itment of spendable resources for the near-term.

Since the government-wide focus includes the long-term view, comparisons between these two perspectives may

provide insight into the

long-term

impact

of

short-term

financing decisions.

Both the governmental

fund balance

sheet

and the governmental fund operating statement provide a reconciliation to assist

in

understanding the

differences betwee n these two perspectives.

The basic governmental fund f inancial statements are presented

on

pages

21

through 24 of this report.

Proprietary funds

are

reported

in the

fund financial

statements

and

generally report services for

which the

City

charges customers a

fee.

The City proprietary fund is

classified as

an

enterprise

fund.

This

enterprise

fund

essentially

encompasses

the

same functions reported as

business-type

activities

in

the

government-wide

statements.

The basic enterprise fund

financial

statements are presented

on

pages 25 through 28

of

this report.

NOTES TO THE BASIC FINANCIAL STATEMENTS

The accom panying notes

to

the

basic

financial statements provide information essential

to a

full understanding of

the governmen t-wide and fund f inancial statements. The notes to the

basic

f inancial statements begin on page

29 of this report.

OTHER INFORMATION

In addition

to

the

basic

f inancial statements

and

accompanying notes, this report also presents certain required

supplementary

information concerning

the City's budget presentations. The

management 's

discussion and

analysis

on

pages 3 through 12,

the

budgetary com parison statements

on pages

51

through

57, and

the

schedule

of

the

City's

proport ionate share

of net

pension

liability

for the Municipal

Police

Employee

Retirement System

(MPERS), Municipal Em ployee Retirement System (MER S), and Firefighters Retirement System of Louisiana

(FRS)

and related schedule of pension plan contributions are included at pages 58 through 63 as "required

supplementary information" for the general fund and the major special revenue funds. These statements and

schedules demonstrate comp liance

with

the

City's

adopted and final

revised

budgets.

As discussed, the City reports major

funds

in the basic financial stateme nts. The other supplementary information

including the proprietary

fund's

statement of operating expenses by department,

the

schedule of number

of

utility

customers, the schedule

of

insurance

in

force, and the schedule of compensation paid to the Mayor and C ouncil

members, and the schedule

of

compensation, benefits and other payments

to

the

chief

executive officer are

presented

in a

subsequent section

of this

report beginning

on page

66.


6/76



FINANCIAL ANALYSIS

OF

THE CITY AS A

WHOLE

The City's net position a t fiscal year-end are $5,888,630. The

following table

provides a summary of the

City's

net position:

Summary

of

Net P osit ion

Governm ental Business-Type 2015

Percentage

2014

Activities

Activities

Total Total

Total

Assets:

Current assets

$

595,852

$

260,875

$

856,727

6%

$ 884,652

Restricted assets 169,442

83,477

252,919

2

78,976

Capital

assets 4.294.666

7.889.992

12.184.658 92 12.622.523

Total assets

5.059.960 8.234.344

13.294.304

100%

13.586.151

Deferred outf lows of

resources 548.603 548.603

100%

-

Liabilities:

Current

liabilities 1,256,429 216,724

1,473,153

20%

1,355,356

Long-term liabilities

3.116.487

2.638.100

5.754.587

80

3.931.314

Total liabilities 4.372.916 2.854.824

7.227.740

100%

5.286.670

Deferred

inflows

of

resources

Net Position:

Investment in capital

assets,

net

of debt

Restricted

Unrestricted

726.537

2,897,728

169,442

(2.558.060)

5,172,627

10,377

196.516

726.537

100%

8,070,355

179,819

137%

3

Total net position $ 509.110

(2.361.544) (40)%

5.888.630

m.

8,314,768

8,081

(23.368)

8.299.481

The

City

continues

to

maintain w eak current rat ios.

The current

ratio com pares current asse ts

to current

liabilities

and is an

ndication

of

the

ability

to pay

current obligations.

The

current ratio

is

0.47

to

1 for gove rnm ental activities

and

1.2

to

1

for

business-type activities.

This

compares

with the

prior

year's

ratios of 0.48

to

1

and

1.87

to 1,

respectively.

For

the

City ove rall, the

current ratio

is

0.58

to

1

while that

same

financial

indicator was 0.65

to

1 for

the fiscal

year ended June 30,

2014.

These ratios

are

improving but still

weak.

The City

reported

positive

balances

in net

position for

both governmental and business-type activities. For the

fiscal years ended

June

30,

2015 and

2014, respectively,

net

position

increased

(decreased) by $493,055 and

($209,632) for governm ental activi t ies and by ($329,301) and ($30,487) for business-type activities. The City's

overall financial

posit ion improved during the

f iscal year ended

in

June 30, 2015,

but

is

still weak.

Note that approximately 569% and 113% of the governmental activities'

net position

are t ied up

in

capital assets

as

of

June 30, 2015

and

June 30, 2014,

respectively. The

City

uses these

capital assets

to

provide

services to

its cit izens. However, with

business-type

activities, the City

has

invested approximately 96% an d

94%

of its

net

position

on

capital assets during

the

respective

fiscal

years ended June 30, 20 15

and 2014. Capital assets in the

business-type activities provide

utility services , but

they also generate

revenues

for

this fund.

For

the respective

fiscal years ended June 30, 2015

and

2014, 137%

and

100%

of the City's total net

position, net of debt, are

included

in

capital assets.


7/76

CITY OF OAKDALE,

LOUISIANA


The following table provides a summary of the City's changes in net position:

Governmental Business-Type

2015 %

2014 %

Activities

Activities

Total Total Total Total

Revenues:

Program:

Charges

for

services/f ines $

309,321 $ 1,842,351 $

2,151,672

47%

$

2,170,246 48%

Operat ing grants 154,061

-

154,061

3%

176,291

4%

Capital grants

58,793

-

58,793

1%

18,161

-%

General :

Sales taxes 1,194,354

-

1,194,354 26% 1,155,078

26%

Other taxes 669,436

_

669,436

15%

690,109 15%

Other

367.668 143

367.811

8%

320.497 7%

Tota l Revenues 2,753,633 1.842.494

4.596.127 100% 4,530,382

100%

Program

expenses:

General

government 772,598

-

772,598 17% 865,977

20%

Public safety:

Police

1,323,397

-

1,323,397 30%

1,211,435

28%

Fire

408,405

-

408,405 9% 306,110 7%

Public works

470,958

-

470,958 11%

419,595 10%

Heal th and recreat ion 168,424

-

168,424

4% 231,377

5%

Interest

63,669

25,034

88,703

2%

84,352 2%

Utility

expenses

_

1.199.888 1.199.888

27%

1.232.391

28%

Total Expenses

3.207.451

1.224.922

4.432.373 100%

4.351,237

100%

Excess (def iciency) (453,818) 617,572

163,754 179,145

Transfers 946.873

(946.873)

_ _

Change

in

ne t

position

493,055 (329,301)

163,754 179,145

Beginning

ne t

posit ion 2,590,660

5,708,821

8,299,481 8.120.336

GASB 68 adjustment -note A(21) (2,453,093)

-

(2,453,093)

-

Prior period

adjustment -note

0

(121.5121

(121.512)

-

Beginning

net posit ion-as restated 16.055 5.708.821 5.724.876

_

Ending

net

position

$ 509 110

$

5,379,520

$

5.888

630 $ 8.299.481

GOVERNMENTAL REVENUES

The C ity is heavily reliant

on

sales

taxes to

support governmental operations. Sales taxes equal 43% of

the

revenues for governm ental activi t ies, as com pared with 43% in the prior year. Also note that program revenues

cover

only

18%

(17% in the year end ed June 30,

2014)

of

governmental

operating expenses.

This

means that

the governmen t's taxpayers and the City's other general revenues fund 82% (83 % in the prior fiscal year) of the

governmental

activities.

As a result, the general economy an d the local businesses have a major impact on the

City's

revenue streams.

GOVERNMENTAL FUNCTIONAL EXPENSES

For

the fiscal

years

ended

June

30,

2015

and

2014, respectively, pol ice s ervices comprised 30%

and

28%

of the

City's total expenses and

41

% and 39% of the total governmental expenses. For the f iscal years en ded June 30,

2015 and 2014,

total public

safety makes

up

54% and

49% of the

total governm ental expenses.

This table

presents the cost of each of the City's programs,

including

the net costs

(i.e.,

total

cost

less

revenues

generated by the activities).

The net costs

i l lustrate

the

f inancial burden

that was

placed on the City's taxpayers

by each

of these

functions.


8/76

CITY OF OAKDALE,

LOUISIANA

Management 's

Discussion and Analysis (Continued)

Governmental Activities

2014 2015

Total Cost

Net Cost (Benefit)

Total Cost Net Cost

(Bern

of

Services

of Services

of

Services

of Services

General government $

865,977

$ 638,138 $ 772,598 $ 525,502

Public safety:

Police 1,211,435 1,034,223 1,323,397 1,140,023

Fire

306,110 272,429 408,405

331,605

Public works

419,595

342,350 470,958 456,053

Health and recreation

231,377 231,377

168,424 168,424

Interest

on

long-term debt

57.046 57.046

63.669

63.669

Total

$3,091,540

$ 2.575.563 $ 3.207.451 $ 2.685.276

BUSINESS-TYPE ACTIVITIES

Revenues vs.

Costs

The operating revenues for the utility funds

were

2% more than 2014 and operating expenses 3% less than 2014.

Within the

total business-type activities of

the

City, these activities reported

a

$617,429

operating

income

compared

to

an operating incom e

of

$576,907 for

the

prior year. However, after operating transfers out,

the

funds

reported a

deficit

of

$329,301,

which compares

with

the overall fund

deficit

of $30,487

experienced

in

the

year

ended June 30, 2014.

FINANCIAL ANALYSIS OF THE C ITY'S FUNDS

Governmental Funds

As discussed, governme ntal funds are reported in the fund statements with

a

short-term,

inflow

and outf low of

spendable resources focus. This information is useful

in

assessing resources available at the end of the

year

in

comparison

with upcoming

financing requirements. Governmental

funds reported

ending

fund

balances

of

($152,308) and

($415,527)

for

the fiscal years ended June 30, 2015

and

2014, respectively.

O f

the year-end

totals for

June 30, 2015,

($586,802) was unassigned,

indicating

lack of

availability for continuing

City

service

requirements.

Assigned

fund balance included $265,052 committed to

public

safety, public works and

infrastructure.

Legally

restricted fund

balance included $169,442 comm itted

to debt

service

in the year

ended

June 30, 2015.

The

total ending

fund balances of governmental

funds

show an

increase

of

$263,219.

This compares

with

an

increase of $213,256 experienced in the prior f iscal year ended June 30, 2014.

MAJOR

GOVERNMENTAL FUNDS

The General

Fund

is the C ity's primary operating fund and the largest source of day-to-da y se rvice delivery. The

General Fund's fund balance increased

by

$85,670 in the current fiscal year, while in

the

fiscal year ended June

30,2014,

the

fund balance increased

by $200,101. How ever, the reader

needs to

remem ber that the C ity controls

these differences b y the amount of resources

it

transfers in from the City's other funds.


9/76



The

revenues

show an increase of

$65,745 or 1% more

than the prior yea r reflecting

primarily increases

in

sales

taxes. The expend itures side shows an increase of $212,407 or 9% more

than

the prior year reflecting primarily

increases in public safety spending.

The General

Fund's end ing fund

balance was m ore than the prior year representing the equivalent of (22%)

of

its

annual expen ditures

and

(21%)

of its

annual revenues including operating transfers.

The Sales Tax Fund continues

to

maintain

a

moderate fund balance with revenues

in

2015 being approximately

the same as

those

earned in

the

f iscal year ended June 30, 2014, which had been approximately the sam e as

those earned

in the

preceding year. Expenditures consisted primari ly of transfers

to

other funds.

The Gam ing

Fund

continues

to

maintain

a

minimal fund balance as revenues in 2015 were 9% less than those

earned in the

fiscal

year ended June 30, 2014, which had experienced a 3% decrease from the preceding year.

Expenditures

consisted

primarily

of

transfers

to

other fund s.

The F ire Department

Fund continues to

maintain

a

minimal

fund

balance

with

revenues

in

2015 being 12% m ore

than those earned in the

fiscal

year ended June 30, 2014.

The

expenditures

side

shows

an

increase of $316,756

or

93% more than the prior

year reflecting

primarily

increases

in capital outlay spending on a purchase

of

a fire

truck.

The Debt

Service

Fund is used to accumulate monies for the payment of

principal

and interest on long-term

indebtedness and is

maintaining

a

minimal

fund

balance with

revenues in

2015

being 2% more

than those earn ed

in the

fiscal year

ended June 30,

2014. Shortfalls are generally covered by transfers

from

other funds.

THE PROPRIETARY FUNDS

The proprietary fund statements

share

the same

focus as

the government-wide statemen ts, report ing

both

short-

term information about

financial

status.

BUDGETARY HIGHLIGHTS

The General

Fund

- Both the revenue and the expenditure sides of the current year final budget for the General

Fund were revised by a $75,138 increase and a $201,480 decrease, respectively

in

relation

to

the prior year's

final budget.

The

primary

change in

the General

Fund's

amended revenue budget relates

to

increases

in

miscel laneous income, and the amended expenditure budget

increases

to

financial

administration.

The actual revenues

exceeded the final

budget by

$41,663

or 4% and

the actual

expenditures were

more

than

budgeted expen ditures

by

$310,165 or

13%.

The Sales

Tax Fund - Both

the revenue and

the

expenditure sides

of the

current year

final

budget for

the

Sales

Tax

Fund were revised by a

$33,199 increase

and no

change, respectively in

relation to the prior

year's final

budget.

The

primary

change

in

the

Sales Tax

Fund's

amende d revenue budget relates

to the

increase

in

sales

tax

revenues, and the amended

expenditure

budget to the

decrease

in

sales

tax

collection

fees.

The actual revenues

exceeded the final

budget

revenues

by

$8,106 or

1%

and the actual expenditures equaled

budgeted expenditures of $0.


10/76

CITY OF OAKDALE,

LOUISIANA

Man agem ent's Discussion and Analysis

(Continued)

The Gaming

Fund -

The revenue side of

the

current year's final budget for

the

Gaming

Fund

was revised

by

$12,123 or

7%

decrease, respectively

in

relation

to

the prior

year's

final budget.

There

were nom inal changes

in

the Gaming Fund's budget in

relation

to the prior year's

final

budget.

The actual revenues

were exceeded

by the

final

budgeted revenues by $3,232

or

2%

and the

actual expen ditures

exceeded the final

budget

by $53

or

100%.

The Fire Department Fund - The revenue and expenditure sides of the current year's final budget for the Fire

Department Fund

was revised by a

$4,878 increase and

a

$898 increase, respectively In relation

to the

prior

year's final budget. The primary change

in

the Fire Department Fund's amended budget relates

to

the overall

increase in advalorem tax revenues and a decrease in salaries.

The actual

revenues

exceeded

the

final

budgeted revenues

by

$30,248 or

22%

and

the

actual

expenditures

exceeded the f inal budgeted expenditures by $385,068 or 142% .

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital assets

The City's investment in

capital

assets, net of accumulated depreciation, for governm ental and business-type

activities as of June 30, 2015,

were

$4,294,667 and $7,889,992, respectively,

while those

f igures as of June 30,

2014,

were

$4,353,175 and $8,269,348 respectively.

The

overal l decrease w as 3%

for

the City

as

a whole.

See

Note D

for

addit ional information about changes in capital assets during the fiscal

year

and outstanding

at

the

end

of

the year.

The fol lowing

table provides

a

summary

of

capital ass et activity.

Capital Assets

Governmental Business-Type

Activities

Activities Total

2014

2015

2014

2015 2014 2015

Non-depreciable a ssets:

Land 532,583

$

532,583 70,543

$

70,543

603,126 $

603,126

Total non-depreciable 532.583 532.583

70.543

70.543 603.126 603.126

Depreciable assets:

Buildings

Vehicles

Equipment, furniture and

fixtures

Improvements other than

buildings

Utility

systems

Infrastructure

6,105,341

1,048,548

1,328,932

467,359

1.527.400

5,521,745

1,275,111

1,284,756

467,359

1.527.400

16,491,684 16,472,923

6,105,341

1,048,548

1,328,932

467,359

16,491,684

1.527,400

5,521,745

1,275,111

1,284,756

467,359

16,472,923

1.527.400

Total

depreciable assets

10,477,580

10,076,371 16,491,684 16,472,923 26,969,264

26,549,294

Less accumulated depreciation 6,656,988

6.314.287

8.292.879 8,653,474 14,949,867

14,967,761

Book

value-depreciable assets 3.820.592

$ 3.762.084

$

8.198.805

$

7.819.449

$

12.019.397

11,581,533

P e r c e n t a g e d e p r e c ia t e d

B o o k

v a l u e - a l l

a s s e t s

64%

i;

4 36:^ 176

63%

3 ; 4 ?q4

6R7

50%

53 55 56

S S ;

12.184 65Q

The depreciable

capital

assets for

governmental

activities were

63% and 64%

depreciated

for the fiscal years

ended June 30,

2015

and

June 30,

2014, respectively. This comparison indicates that the City is replacing its

governmental assets

at approximately

the

same rate as they are depreciating.

10


11/76



The

major

additions are:

•

A vehicle

• Fire-fighting equipment

With

the

City's business-type activities, 53% of

the asset

values were depreciated at June 30,

2015 compared to

50% at June

30,

2014.

The major

additions are:

• Monitoring Systems

Long-term

debt

At

the end

of

the fiscal

year,

the

City

had

total long-term debt o utstanding

of

$4,117,542. Al l

of

this amount

is

backed by

the

ful l faith an d credit of the City with debt service

funded

by sales

taxes

and sew er fund revenues.

During the year, the

City

issued $241,072 and retired $434,099 in

long-term debt. See Note

G

for

additional

information rega rding long-term debt.

Outstanding Borrowings

2014

2015

Sewer revenue bonds $ 2,858,000 $2,712,000

Revolving loan 722,412 632,412

General

obligation

bond

280,000 215,000

Certi ficates of indebtedness 230,000 155,000

Capital

lease

obligations 181,049 374,207

Accrued

leave

benefits 39.108 28.923

Total

$ 4.310.569 $ 4.117.542

ECONOM IC CONDITIONS AFFECT ING THE CITY

The City's

primary

revenue stream comes from uti li ty charges and sales taxes, which are subject to changes in

the economy. Since sales are considered an

"elastic"

revenue stream, tax collections are higher in a flourishing

economy and

are

lower in a

depressed

economy.

The

current compact

with

the Coushatta

Tribe of

Louisiana began

in

2001

and

automatical ly renewed

in

2007.

The

gaming

revenues

to be

submitted

to the City

were scheduled

in that compact to be at $410,000 per year to

assist

with increased critical

services

l ike fire

protection,

police

protection, and construction, maintenance, and

repair of municipal infrastructure and housing. Recent gaming payments

to

the City for the current fiscal year

amount to a

l it t le o ver $39 ,000

per

quarter. This represents

a

decrease of

62%

of

the

funding from

the

original

compact.

11


12/76

CITY OF OAKDALE,

LOUISIANA


CONTACTING THE CITY'S

FINANCIAL MANAGEMENT

This financial report is designed

to

provide

a

general overview of the C ity's

finances,

comply with finance-related

laws and regulations,

and

demonstrate

the City's

commitment to

public

accountability.

If

you have

any

questions

about this report or would

l ike to

request additional information, contact the City's Mayor, Gene Paul, P.O. Box

728, Oakdale,

LA

71463.

12


13/76

ROYCE

T. SCIMEMI,

CPA, APAC

CERTIFIED

PUBLIC ACCOUNTANT

P.O.

Box

210

Oberlin,

LA 70655

Tele (337)

639-4334,

Fax (337) 639-4068

Member Member

American

Institute of Society of Louisiana

Certified Public Acc ountants Certified Public Accountants

INDEPENDENT AUDITORS'

REPORT

December 31, 2015

Honorable

Gene

Paul, Mayor

and

the C ity Council

City

of

Oakdale,

Louisiana

Report on the Finan cial Statements

W e have audited

the

accompanying financial statements of the governm ental activities, the business-type activities,

and each major fund of the City of Oakdale, Louisiana as of and

for

the

year

ended June

30,

2015, and the related notes to the

financial statements, vyhich collectively comprise

the

City of Oakdale, Louisiana's

basic

financial statements as listed in

the

table of contents.

Managemen t s Resp onsibility for the Financial Statements

Management is responsible for the preparation

and fair presentation of

these financial

statements

in

accordance

with

accounting

principles

generally accepted

in

the United States

of

America;

this includes the

design, implementation,

and

maintenance of internal control relevant to the

preparation

and

fair

presentation of financial statements that are

free from

material misstatement, whether due to fraud or error.

Auditor s Responsibility

Our responsibility

is to

express opinions on these financial statements based on our audit.

W e

conducted our audit in

accordance

with

auditing standards generally accepted in the United States of America an d the standards applicable to financial

audits contained in Government

Auditing

Standards issued by the Comptroller General of the United States. Those standards

require that we plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from

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 auditor's judgment, including the assessment of the risks of material

misstatement of the financial statements, whether due

to

fraud or error. In making those risk assessments,

the

auditor considers

internal

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.

W e believe that

the

audit

evidence we

have obtained

is

sufficient and appropriate

to provide

a

basis

for our audit opinions.

1 3


14/76

Independent Auditors' Report

Honorable

Gene Paul, Mayor and the City Council

City

of Oakdale,

Louisiana

December 31, 2015

Page

2

Opinions

In

our opinion, the financial statements referred to

above

present fairly, in all

material

respects,

the

respective

financial

position of

the

governmental activities,

the

business-type

activities,

and each major fund of

the

City of

Oakdale,

Louisiana,

as

of June 30, 2015, and

the

respective

changes in financial position,

and,

where applicable, cash

f lows

thereof for the

year then

ended in accordance with accounting principles general ly accepted in the United States of America.

Other Matters

Required

Supplementary Information

Accounting principles generally

accepted

in

the

United States of America require that the management's

discussion

and analysis,

budgetary comparison information,

and

pension schedules on pages 3 through 12 and 51 through 64 be

presented tosupplement the basic financial statements. Such information, although not a partof thebasic

financial

statements,

is

required

by the Governmental 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 context. We have appl ied certain

l imited 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

in formation

and

compar ing

the

information for consistency with management's 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

provide us with sufficient evidence to express an opinion

or

provide any

assurance.

Other Information

Our

audit

was conducted for the purpose of

forming

opinions on the financial statements that

collectively

comprise

the

City of

Oakdale, Louisiana's basic financial statements. The proprietary fund statement of

operating

expenses by

department, the schedule of number of utility customers, theschedule of insurance in force, and the schedule ofcompensat ion

paid

to

the Mayor and Council

Members,

and schedule of com pensation, benefits and other p ayments to chief executive officer

are

presented on pages 66 through 70 for

purposes

of additional

analysis

and are not

a

required part of the basic financial

statements.

The proprietary fund statement

of

operating expenses by department, the schedule of compensation paid to

the

Mayor

and Council Members, and

the

schedule of compensation, benefits and other

payments

to chief executive officer are the

responsibil i ty

of management and was derived from

and

relate directly

to the

underlying accounting and other records used

to

prepare the basic financial statements. Such information has been subjected to the auditing procedures

appl ied

in the audit

of

the basic financial statements

and

certain

additional procedures, including comparing

and reconciling

such information

directly

to the underlying accounting and other records used

to

prepare the basic financial statements or

to

the basic financial

statements

themselves, and other additional procedures in

accordance

with auditing standards generally accepted n the United

States of America. In our opinion, the proprietary fund statement of operating expenses by department, the schedule of

compensation paid

to the Mayor and Council Members, and the

schedule

of

compen sation, benefits and other paymen ts to chief

executive officer

are fairly

stated,

in all

material

respects,

in

relation to

the

basic

financial statements as

a

whole.

The schedule of number of utility customers

and

schedule of insurance in force have not been

subjected

to the

auditing

procedures applied

in

the audit of the

basic

financial statements

and,

accordingly, we do

not

express

an opinion or

provide any

assurance on them.

Other Report ing R equired

by Government

uditing Standards

In accordance with Government

Auditing

Standards,

we have also issued our report

dated

December 31,

2015,

on

our consideration of the City

of

Oakdale, Louisiana's internal control over financial reporting and on our tests of its

compliance

with certain provisions

of

laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is

to describe the scope of our testing of internal control

over

financial reporting and compliance and

the

results of that testing,

and not

to

provide an opinion on internal control

over

financial reporting or on compliance. That report is an integral part of an

audi t

performed in accordance with Government Auditing Standards in considering

the

City of Oakdale, Louisiana's internal

control

over

financial reporting and compliance.

Royce

T. Scimemi, CPA, APAC

7

c P A A P ^

1 4

I


15/76

BASIC FINANCIAL STATEMENTS

1 5


16/76

GOVERNM ENT-WIDE FINANCIAL STATEMENTS (GWFS)

1 6


17/76

City of Oakdale, Louisiana

Statement of Net Position

June 30,

2015

Primary

Government

Governmental Business-type

Activities

Activities

Total

ASSETS

Current

ssets

Cash and certificates of

deposit

$ 193,775

$ 22,592

$ 216,367

Prepaid expenditures

34,544

~

34,544

Accounts receivable

367,533

238,283 605,816

Total

Current

ssets

595,852

260,875

856,727

Noncurrent Assets

Land

532,583

70,543

603,126

Capital assets,

net

3,762,083 7,819,449

11,581,532

Restricted cash and certificates ofdeposit

169,442

83,477

252,919

Total Noncurrent Assets

4,464,108

7,973,469

12,437,577

Total ssets

5,059,960 8,234,344

13,294,304

DEFERRED OUTFLOWS

OF

RESOURCES

Aggregated deferred outflows

548,603

—

548,603

Total

Deferred

Outflows of Resources

548,603

—

548,603

LIABILITIES

Current

Liabilities

Accounts payable

917,602

64,359

981,961

Accrued

interest

payable

20,319 5,365

25,684

Accrued

compensated

absences payable

28,923

—

28,923

Bonds payable

240,000

147,000

387,000

Capital leases

payable

49,585

—

49,585

Total Current

Liabilities

1,256,429

216,724

1,473,153

Noncurrent

Liabilities

Customer deposits

payable

—

73,100

73,100

Capital leases payable

324,622

~

324,622

Bonds payable

762,412

2,565,000

3,327,412

Net

pension l iability

2,029,453

—

2,029,453

Total Noncurrent

Liabilities

3,116,487 2,638,100 5,754,587

Total Liabilities

4,372,916

2,854,824

7,227,740

DEFERRED INFLOWS OF RESOURCES

Aggregated deferred inflows

726,537

726,537

Total Deferred Inflows of Resources

726,537

726,537

NET

POSITION

Invested in capital assets

net of

related

debt

2,897,728

5,172,627

8,070,355

Restricted

169,442

10,377

179,819

Unrestricted

(2,558,060)

196,516 (2,361,544)

Total Net

Position

$ 509,110

$

5,379,520 $

5,888,630

See accompanying notes.

17


18/76

City of Oakdale, Louis iana

Sta tement o f A ct iv it ies

For the Year Ended June 30, 2015

Program Revenues

Net

(Expense)

Revenue

Primary

Government

Functions/Programs Expenses

Operating

Capital Grants

Charges for

Grants

and and

Services Contributions

Contributions

Governmental

Activities

Business-type

Activities Total

Primary Government

Governmental Activities:

General govemment $ 772,598 $ 206,529 $ 28,324 $

12,243 $ (525,502) $

-

(525,502)

Public

safety

-

police 1,323,397 102,792 80,582

--

(1,140,023)

-

(1,140,023)

Public

safety -

ire

408,405 30,250 46,550 (331,605)

(331,605)

Health and recreation 168,424

-

~

(168,424)

~

(168,424)

Public works

470,958 14,905

~

(456,053)

-

(456,053)

Interest

and

fiscal charges 63.669

_ _

_

(63,669) (63,669)

Total

Governmental Activities

3,207,451 309,321 154,061 58,793

(2,685,276)

_

(2,685,276)

Business-type Activities:

Water department

463,996

977,438

-

513,442 513,442

Sewer department

735,892 864,913

129,021 129,021

Interest and fiscal charges-sewer

25,034

_

(25,034)

(25,034)

Total Business-type Activities

1,224,922 1,842,351

_

_ _

617,429 617,429

Total

Primary Government

$ 4,432,373 $

2,151,672 $ 154,061 $ 58,793 $

(2,685,276)

$ 617,429

$

(2,067,847)

General Purpose Revenues

and Transfers:

Revenues

Taxes-

Property taxes, levied or

general

purposes

Property taxes, levied or fire protection

Property taxes, levied or sewer bonds

Sales and use taxes, evied for general purposes

Other taxes

Franchise

Payment in lieuof taxes

Intergovernmental

State sources

Local

sources

Miscellaneous

Interest income

Non-employer pension contributions

Transfers

127,876

138,628

85,004

1,194,354

9,868

287,901

20,159

9,450

154,658

146,590

364

56,606

946,873

143

(946,873)

127,876

138,628

85,004

1,194,354

9,868

287,901

20,159

9,450

154,658

146,590

507

56,606

Total General Revenues and Transfers 3,178,331 (946,730) 2,231,601

Change in Net Position

NetPosition atBeginning of Period

GASB 68 Adjustment-See Note A

(21)

Prior Period

Adjustment-See

Note0

493,055

2,590,660

(2,453,093)

(121,512)

(329,301)

5,708,821

163,754

8,299,481

(2,453,093)

(121,512)

Net Position at

Beginning of Period-As Restated

16,055 5,708,821

5,724,876

Net Position at End of Period

1

509,110 5,379,520

$

5,888,630



19/76

FUND FINANCIAL STATEMENTS (FFS)

1 9


20/76

MAJOR FUND DESCRIPTIONS

General Fund

The General

Fund is used to

account

for

resources traditionally associated

with

governments which are not

required

to

be accounted for in another fund.

Special Revenue Funds

Special

revenue funds are

used to account for specific revenues

that

are

legally

restricted to expenditures for

particular purposes.

Sales Tax Fund

To account for the

receipt

and expenditure of proceeds of the City's

restricted

sales and use taxes.

Gaming Revenue Fund

To account for the receipt and e xpenditure of funds

in

accordance with the compa ct agreement with the Coushatta

Tribe of Louisiana.

Fire Department

Fund

To

account for

the

receipt

and

expenditure

of

funds u tilized

in

the operations of the Fire Department. Funding is

primarily provided by an ad

valorem tax

and operating transfers from the

General

and

Sales Tax

Funds.

Debt Service Fund

To account for the accumulation of resources for, and the paym ent of, general long-term debt principal, interest,

and

related costs.

Proprietarv Fund

To

account for the provision

of water and sewer services

to

residents

of the

City. All activities

necessary to

provide

such s ervices are accounted for

in

his fun d, including, bu t not

l imited

to, administration, operations, maintenance,

financing and related debt service, and

billing

and collection.

20


21/76

City of Oakdale,

Louisiana

Balance Sheet

Governmental Funds

June 30,

2015

Special Revenue

General Sales Tax Fund Gaming Fund

Fire Department

Fund

Debt

Service

Bonded Debt

Fund

Total

Governmental

Funds

ASSETS

Cash

and certificates

of

deposit

$

166,316

$

8,348

i 317

$ 18,794

$

-

193,775

Restricted cash and

certificates of

deposit

~

~

--

169,442 169,442

Prepaid

expenditures 34,544

~

34.544

Accounts receivable 128,528

201,950

37,055

~

367,533

Total

Assets

329,388

210,298

37,372

18,794

169,442

765,294

DEFERRED OUTFLOWS OF RESOURCES

Aggregated deferred

outflows

— — — —

—

Tata Assets andDeferred Outflows ofResources $

329,388 210,298 J 37,372 18,794 169,442

765,294

LIABILITIES

Accounts payable

and

accrued

iabilities $

916,190

$

E

1,412 $ 917,602

Total

Liabilities 916,190

_ _ _ _

1,412

917,602

DEFERRED INFLOWS OF RESOURCES

Aggregated

deferred inflows

—

—

—

—

~

Total

Liabilities and Deferred Inflows

of

Resources 916,190

1,412 917,602

FUND

BALANCE

Restricted

~

--

169,442

169,442

Assigned

—

210,298

37,372

17,382

~

265,052

Unassigned

(586,802)

—

—

—

—

(586,802)

Total Fund Balance

(586,802) 210,298 37,372 17,382

169,442

(152,308)

Total Liabilities, Deferred nflows

ofResources

and

Fm

$

329,388 210,298 J

37,372

18,794 169,442 765,294



22/76

City of Oakdale, Louis iana

Reconci i iat ion

of

Governmentai Funds Baiance Sheet to the Sta tement

of

Net Position

Jun e 30, 2015

Total Fund Baiance - Governmentai Funds

(152.308)

Accrued interest payable Is

accrued

on Statement of

Net Position and expensed on

the Statement of

Activities,

interest

is

expensed on a cash

basis

on the Statement of

Revenues,

Expenditures,

and

Changes in Fund

Balances.

Compensated

absences expensed

as

paid in

governmentai

fund

statements,

expensed

as

incurred

in entity wide

statements,

and reflected as liabili ty on

Statement

of Net Position.

Principal

payments on long-term debt expen sed in

governmental

fund

statements,

treated

as

reductions

of outstanding debt in

entity

wide

statements.

Fixed

assets

are capitalized in

the

Statement of Net Assets and

depreciated

in

the

Statement of

Activities.

These are expensed when

acquired

in the

Statement

of

Revenues, Expenditures, and Changes in Fund Balance.

Long-

term debt reflected on Statement of Net P osition not in

governmental funds

balance sheet.

Pension

related change s

in

net pension

liability

that is

only reported

in

the Statement

of Net Position

Pension related

changes in net pension liability that is only

reported

in the Statement

of Net

Position

(20,319)

(26,923)

(85,215)

4,294,666

(1,291,404)

(726,537)

548,603

Net

pension liabili ty

reflected

on the

Statement of Net

Position

not

in

governmental

funds balance sheet

Total Net Position-Governmental Funds

(2,029,453)

509,110

See accompanying

notes.

22


23/76

City of Oakdale, Louisiana

Statement of

Revenues, Expend itures,

and

Changes

in

Fund

Baiances

Governmentai Funds

For the Year Ended June 30,

2015

Speciai Revenue Debt Service

General Sales

Tax Fund

Gaming Fu n d

Fire

Department

Fu n d

Bon d ed Debt

Fu n d

Total

Governmental

Funds

Revenues

Taxes S

425,645

$

1,194,354

$ 138,628

$ 85,004 $ 1,843,631

License and

permits

206,529

--

206,529

Intergovernmental

212,214

--

30 ,248 242,462

Fines

102,792

-- --

--

102,792

Miscel laneous 146,587

-- -- --

146,587

Gaming 154,658 154,658

Interest income 239 88 2

—

35

364

Total Revenues

1,094.006

1,194,442

154,660 168,876

85,039

2,697,023

Expendi tures

Current:

General government

General government

760,626

--

53 703 761,382

Public

safety -

police 1,258,642

1,258,642

Public safety - fire

62,780

--

--

322,487

--

385,267

Health

and recreat ion

119,271

--

119,271

Public works 435,157 435,157

Capital

outlays

34,765

--

290,071

--

324,836

Debt service:

Principal ret i rement

15 ,923 31,991 230 ,000

277,914

Interest and fiscal charges

3,262

—

_ _

12,342 43,675 59,279

Total Expenditures

2,690,426

..

53

656,891

274,378

3,621,748

Excess of Rev enues Over

(Under ) E xpendi tures

(1.596,420) 1,194,442

154,607

(488,015) (189,339) (924,725)

Other

Financing Sources

(Uses)

Transfers f rom other funds

1,682,090

(1,198,031) (158,110)

263,603

357,321 946,873

Capital lease proceeds

—

241,071

_ _

241,071

Net Other

Financing

Sources Uses) 1,682,090

(1,198,031)

(158,110) 504,674

357,321 1,187,944

Net Change in Fund Balance 85,670 (3,589) (3,503)

16 659 167,982

263,219

Fund

Balance

at

Beginning of Period

(550,960)

213,887

40,875 723

1,460

(294,015)

Prior

per iod adjustment

-

Note

(121,512)

—

—

(121,512)

Fund Balance at Beginning of Period

-

As Restated (672,472)

213,887 40,875 723 1,460

(415,527)

Fund

Balance

at End of Period

i (586,802)

210,298 37,372

$ 17,382

$ 169,442

$ (152,308)


23


24/76

City of Oakdale , Louisiana

Recon ci l ia t ion of Governmen tal Fun ds Statement of Revenue s, Expend i tures, and

Changes

in

Fund Ba lances

with

Sta tement

of

Activit ies

For the Year Ended

J une

30, 2015

Total Net Change in Fund B alances -

Governm ental Funds

Fixed

assets expensed

as capital

outlay

in

governmental

fund

statements,

capitalized as fixed assets

in

Statement

of

Net Posit ion.

$ 263.219

324,836

Compensated absences expensed

as

paid in governmental fund

statements,

expensed as incurred

in

entity wide

statements,

and

reflected

as liability on Statement of

Net

Position.

Principal payments

on

long-term

debt expensed

in

governmental fund

statements,

treated

as

reductions

of

outstanding

debt in

entity

wide

statements.

Depreciat ion ex pense

reflected

in

entity wide statements, not reflected

in governmental fund statements.

Accrued

interest expen se included

in

Statement

of Activities,

expensed

as

paid

in

governmental

fund statements.

Proceeds

of

long-term debt treated as revenue in the fund level

statements,

t reated as increases to long-term deb t

in

entity wide

statements.

Basis in assets

disposed of during the year.

Contributions to ret irement systems by

non-employers

Pension expense

is based on emp loyer contribut ions

in

the

government

funds

Statement

of R evenues, Expenditures, and

Changes in Net

Position and actuarially

calculated

expense

on the

Statement

of

Activit ies.

1 0 , 1 8 5

2 7 7 , 9 1 4

2 9 0 , 6 8 2 )

4 , 3 8 7 )

2 4 1 , 0 7 2 )

9 2 , 6 6 3 )

5 6 , 6 0 6

1 8 9 , 0 9 9

Changes in Net Posi tion-Governmental Fun ds

$

493,055

See accompany ing notes.

24


25/76

City

of Oakdale , Louisiana

Sta tement

of Net

Posit ion

Proprietary

Fund

30-Jun-15

Business-type

Activit ies -Enterprise F u n d

30-Jun-15 30-Jun-14

ASSETS

Current Assets

Cash

and c ertificates

of

deposit

$ 22,592 $ 44,674

Accounts

receivable

238,283 267,589

Total

Current

Assets 260,875

312,263

Noncurrent Assets

Restricted cash

and

certificates of de posit

83,477 77,516

Land

70,543 70,543

Capital

assets, net

7,819,449 8,198,805


7,973,469 8,346,864

Total Assets

8,234,344

8,659,127

DEFERRED OUTFLOWS

OF

RESOURCES

Aggregated deferred outflows

— —

Total Deferred

Outf lows of Resources

LIABILITiES

Current L iabilities

Accounts payable

64,359 1,048

Accrued

interest payable

5,365 20,363

Bonds payable

147,000

146,000

Total Current Liabil i ties 216,724

167,411

Noncu rrent Liabiiities

Customer

deposits payable

73,100

70,895

Bonds payable

2,565,000

2,712,000


2,638,100

2,782,895

Total Liabilities

2,854,824

2,950,306

DEFERRED

INFLOWS

OF

RESOURCES

Aggregated

deferred inflows

— —

Total Deferred Inflows of Resources

—

—

NET POSITION

Invested

In

capital assets,

net

of related debt

5,172,627

5,390,985

Restricted

10,377

6,621

Unrestricted

196,516

311,215

Total Net Posit ion

5.379.520

$ 5.708.821

See

accompanying

notes.

25


26/76

City

of Oakdale , Louisiana

Statement

of Revenues, Expenses, and C hanges in

Net Position

Proprietary Fund

For

the Years Ended June 30, 2015

Busin ess-type Activi t ies

-

Operat ing Revenu es

Wa ter department revenues

Sewer

department revenues

Total

Operat ing

Revenues

Operating

Expenses

Water department expenses

Sewer

department expenses

Total

Operat ing Expenses

Operating Income (Loss)

Non-Operat ing Revenues (Expenses)

Interest incom e

Bad

debt recovery

Interest expense

NetNon-Operating Revenues (Expenses)

Income

Before

Contributions

and Transfers

T ansfers

Change

in Net Posit ion

Net

Position at Beginning of

Period

Net

Posit ion

at End of

Per iod

30-Jun-15

30-Jun-14

977,438

954,332

864,913

854,966

1 , 8 4 2 , 3 5 1

1 , 8 0 9 , 2 9 8

463,996

471,637

735,892

760,754

1 , 1 9 9 , 8 8 8

1 , 2 3 2 , 3 9 1

642,463

576,907

143

17

—

39,423

2 5 , 0 3 4 )

2 7 , 3 0 6 )

2 4 , 8 9 1 )

12,134

617,572

5 8 9 , 0 4 1

946,873) 6 1 9 , 5 2 8 )

3 2 9 , 3 0 1 )

3 0 , 4 8 7 )

5 , 7 0 8 , 8 2 1

5 , 7 3 9 , 3 0 8

5 , 3 7 9 , 5 2 0

5 , 7 0 8 , 8 2 1

26

I


27/76


Statement of Cash Flows

-

Proprietary

Fund

For the

Year

Ended

June 30,

2015

Business-Type Activities

E n t e rp r is e F u n d

^014

,2015.

Cash flows from operating

activities:

Receipts

from customers

Payments

to

suppliers

Payments to employees

Net cash from

operating

activities

Cash f lows

from noncapital f inancing

activities:

Operating transfers

Net cash used by noncapital financing activities

Cash f lows from

capital

and related finan cing activities:

Acquisition

of

property,

plant and

equipment

Interest paid

on

sewer

revenue

bonds

Principal paid

on sewer revenue

bonds

Proceeds

from sewer

revenue

bonds

Bad debt (expense) recovery

Net

cash

used

by

capital and

related

financing activities

Cash f lows from

investing

activities:

Net proceeds (purchase) of investments

Interest

on

investments

Net cash us ed by investing

activities

1 , 7 4 0 , 8 3 8

6 1 4 , 4 7 0 )

2 9 9 . 6 0 9 1

826.759

6 1 9 . 5 2 8 1

6 1 9 . 5 2 8 1

7 6 , 9 9 1 )

1 4 , 0 7 5 )

1 4 5 , 0 0 0 )

5 0 , 5 2 7

3 9 . 4 2 3

1 4 6 . 1 1 6 1

J1

17

1 , 8 7 3 , 8 6 2

5 4 9 , 1 2 3 )

2 0 2 . 0 9 8 1

1 . 1 2 2 . 6 4 1

9 4 6 . 8 7 3 1

9 4 6 . 8 7 3 1

6 , 0 0 0 )

4 0 , 0 3 2 )

1 4 6 , 0 0 0 )

1 9 2 . 0 3 2 1

143

143

Net increase (decrease)

in

cash and

cash equivalents

Cash and

cash

equivalents, be ginning

of

period

Cash

and

cash equivalents, end of period

61,132

61.058

122.190

(16,121)

122.190


27


28/76


Statement of Cash Flows

-

Continued

Proprietary Funds

For the Year

Ended June

30,

2015

Business-type

Activities

Entgrprisg Fund

^014

2015

Reconcil iat ion of operating incom e to

net cash provided by operating activities:

Operating income

Adjustments to reconcile

operating incom e

to

net cash provided

by

operating activities;

Depreciation

Changes in

current

assets

and liabilities:

(Increase) decrease in accounts receivable

Increase (decrease) in accounts

payable

Increase

(decrease) in

customer deposits

payable

Basis

in

assets disposed

Net cash provided

(used)

by

operating a ctivities

576,907

393,410

6 5 , 4 8 1 )

8 5 , 3 0 7 )

2 . 9 7 9 )

1 0 - 2 0 9

642,463

3 8 5 , 3 5 6

29,306

63,311

2,205

1-122.641


28


29/76

CITY

OF OAI-CDALE, LOUISIANA

Notes to Basic Financial Statements

For

the Year

Ended June 30, 2015

NOTE A

UM M A R Y

OF SIGNIFICANT ACCOUNTING PO LICIES

The

City

of Oakdale,

Louisiana (City), was created

under the provisions of the

Lawrason Act. The

purpose

of the

City

is

to provide services to

its

citizens,

which include

sewer and water utilities, police

and f ire protection an d other services. The City is governed by the Mayor and a board of f ive elected

counci l

members who are

compensated.

The

City

is

located

in

Allen Parish,

Louisiana

and its

populat ion

is

approximately

7,800. There are

approximately

70

employees working

for the

City.

The

accompanying

financial

statements

of the

City

have been prepared in

conformity

with

governmental

accounting

principles

generally

accepted

in the United States of

America (GAAP)

as

applied to

governmental

units. GAA P includes all relevant Governmental Account ing S tandards

Board

(GASB)

pronouncements. In the

government-wide

financial statements.

Financial Accoun t ing

Standards

Board

(FASB) pronouncements

and

Account ing

Principles Bo ard

(ARB)

opinions

on or

before

November 30, 1986 have been applied unless those pronouncements conf l ict with or

contradict

GASB

pronouncements,

in which

case, GASB

prevails. The

account ing

and

reporting

framework and the more significant accounting policies are discussed in

subsequent

subsections of

this note.

1. Report ing

Entity

As

the municipal

governing authority for reporting purposes,

the City

is

considered a separate

financial

reporting entity. The

f inancial

reporting

entity consists

of (a) the primary government

(municipality),

(b)

organizat ions

for which

the primary government

is

f inancially accountable, and (c)

other organizat ions for which the

nature and

significance of

their

relationship with the primary

government

are such that

exclusion would cause the report ing

entity's financial

statements to

be

misleading

or

incomplete.

GASB Statement No. 14 established criteria

for

determining

which component

units should be

considered

part of the City for

financial

reporting purposes. The basic criterion for

including

a poten tial

component

unit within the reporting entity is f inancial

accountabil ity.

The

GASB

has

set

forth c riteria

to be considered in determining financial accountabil ity. These

criteria

include:

1.

Appoint ing

a voting majority of

an organization's governing

body, and

a.

The

ability of the municipality to impose its will on that organizat ion, and/or

b.

The potential

for

the

organization

to

provide specific

financial

benefits

to or

impose specif ic

f inancial

burdens

on

the

municipality.

2. Organizations for which the

municipality does

not

appoint a

voting majority but are

f iscally dependent

on the

municipality.

3. Organizations

for

which

the reporting

entity's

f inancial

statements would

be

misleading

if

data of the

organization is not

included

because

of the nature

or

significance

of

the

relationship.

As

required

by

accounting

principles generally accepted in the

United

States

of

America, these

financial

statements

present the

City

of

Oakdale, Louisiana

(the primary government)

and

its

componen t units.

By

applying the

above requirements,

the

City

has no component

units.

2. Basis of Presentat ion

The accompanying basic f inancial statements of the

City

have been prepared in conformity

with

GAAP.

The GASB

is

the

accepted standard sett ing body

for establishing

governmental

accounting

and financial reporting principles. The

accompanying

basic financial

statements

have been prepared

in conformity with

GASB

Statement 34, "Basic Financial Statements and Management's Discussion

and

Analysis

for State and

Local Governm ents", issued in

June

1999.

29


30/76

CITY OF OAKDA LE, LOUISIANA


For the

Year

Ended June

3

0, 2015

Governm ent-Wide Financial

Statements

The statement of net posit ion and the statement of activit ies d isplay information about the City as a

whole.

They include all

funds

of

the reporting

entity. The

statements dist inguish between

governmental

and business-type

activit ies. Gov ernm ental activit ies gene rally

are

f inanced through

taxes, intergovernmental revenues,

and

other non-exchange revenues. Business-type activit ies are

f inanced in

whole or

in

part

by

fees

charged to

external

parties for

goods

or services.

The

statement

of

activit ies presents

a

comparison between direct

expenses and

program revenues

for each of the functions of the City's

governmental activit ies

and business-type

activit ies. Direct

expenses are those that are specifically associated with a

program

or function

and,

therefore, are

clearly identifiable to a particular function. Program revenu es include (a)

fees

and

charges

paid

by

the recipients of

services o ffered

by the

City, and

(b)

grants

and contributions that are restricted

to

meeting the

operat ional

or

capital

requirements of a part icular program. Revenues that are not

classified as program revenues, including all taxes, are presented as general revenues.

Fund F inancial

Statements

The

City

uses funds to

maintain

its

f inancial records during

the year. Fund

account ing is designed

to demonstrate

legal

compliance

and

to

aid

management by

segregating

transactions related to

certain City funct ions a nd activit ies. A fund is defined

as

a separate fiscal and acco unting entity with

a self-balancing set of

accounts.

The various funds of the City are classified into two categories:

governmental and proprietary. The emphasis

of

fund f inancial statements is

on

major funds, each

displayed

in a

separate

column.

A

fund

is

considered major if it is

the

primary operat ing fund

of

the

City or if the total

assets,

l iabil it ies, revenues, or expenditures of the individual governmental

or

proprietary

fund

is

at least 10

percent

of

the corresponding

total for all

governmental

and

proprietary

funds

of that

category or type; and total assets, l iabilit ies, revenu es, or expenditures/expen ses

of

the

individual

governmental or proprietary fund

are

at least 5 percent

of

the corresponding total for

all

governmental and proprietary funds comb ined.

The City reports the following major funds:

The General Fund

is used to account for resources traditionally

associated

with governments which

are not required

to be accounted for in another fund.

The Sales Tax Fund

is

used to account for the receipt and

expenditure of

proceeds

of

the

City's

restricted

sales

and use taxes.

The

Gaming

Revenue Fund is used to account

for

the

receipt

and

expenditure

of

funds

in accordance

with the

compact

agreement with the

Coushatta

Tribe of

Louisiana.

The Fire Department Fund is used to account for the

receipt

and

expenditure

of funds util ized in the

operat ions

of the Fire

Department.

Funding

is

primarily provided

by

an ad

valorem tax

and operating

transfers from the

General

and

Sales

Tax

Funds.

The Bonded

Debt

Fund is a

debt service fund and

is used to

account for

the

accumulat ion

of

resources for, and the

payment

of,

general long-term debt principal,

interest, and related

costs.

The

Proprietary

Fund

is

used to

account for operat ions

(a)

that

are

f inanced and operated

in a manner

similar

to private business

enterprises

-

where

the

intent

of the governing body is

that the

costs

(expenses, including depreciation) of providing goods or services to the general publ ic on a

continuing basis

be

f inanced or

recovered primarily through user

charges; or

(b) where the governing

body has decided

that periodic

determination

of

revenues

earned, expenses

incurred, and/or net

income is appropriate

for capital maintenance, public policy,

management

control, accountabil ity, or

other purposes.

The City's

proprietary

fund accounts for

water

and sewer services.

3. Measurem ent Focus/Basis of Account ing

Measurement

focus

is

a term used

to describe "which" transact ions

are recorded within

the

various

financial statem ents. Basis of

account ing refers

to "when" transactions are

recorded

regardless of

the measuremen t focus

applied.

30


31/76



For

the Year

Ended

June

30,

2015

Measurement

Focus

On

the government-wide

statement

of net

posit ion and statement

of

activit ies,

both

governmental

and b usiness-type

activit ies

are

presented

using the

economic

resources

measurement

focus as

defined in item b. below. In the fund financial statements,

the

"current financial resources"

measurement

focus or the "economic resources" measurement focus is used

as

appropriate:

a. All governmental

funds

utilize

a "current f inancial resources" measu rement

focus.

Only

current

financial assets

and liabil it ies are generally

included on their

balance sheets. Their

operat ing statements

present sources

and uses

of

available

spendable

f inancial

resources

during a

given

period.

These funds use fund balances as their

measure of

available spendable

financial resources at the end of the period.

b. The proprietary fund util izes an "economic resources"

measurement

focus. The account ing

object ives

of this

measurement focus

are the

determination

of

operat ing income,

changes in

net

position (or cost recovery), financial position, and cash flows. All assets a nd liabil ities (whether

current

or non-current) associated with their a ctivit ies are reported. Proprietary fund equity is

classified as net pos ition.

Basis

of

Account ing

In

the

governmen t-wide statement

of net

position and statement

of

activit ies,

both

governmental and

business-type activit ies

are presented

using the accrual basis

of

account ing. Under the accrual basis

of

account ing,

revenues are

recognized when earned and expenses are

recorded when

the liability

is

incurred or economic asset

used.

Revenues, expenses,

gains, losses,

assets,

and liabilities

resulting f rom exchange and exchange-like transactions are recognized when the exchange takes

place.

Governmental

fund financial

statements

are

reported

using

the current financial

resources

measurement focus

and the

modif ied

accrual basis of

account ing.

Revenues are

recognized

as soon

as they are both measurable

and avai lable. Revenues are considered to

be

available

when

they

are

collectible

within the

current period

or

soon enough thereafter to pay

liabilities of the

current period.

For

this purpose, the

government con siders revenues to be available if they

are collected

within 60

days of the end of the

current

fiscal period. Expen ditures (including capital outlays) generally are

recorded

when a liability is incurred,

city of oakdale audit

Documents