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NORTH WEBSTER PARISH INDUSTRIAL DISTRICT

AlSOSnjAL, FINANCIAL REPORT

June30,20,09

Under provisions of state law, this report is a public; document Acopy of the report hasbeen submitted to. the entity and other appropriate public officials". The reportjs available forpublic inspection at the Baton Rouge office ofthe LegislativeAuditor and, where appropriate, at the office of the parish cleric of court.

Release Date

NORTH WEBSTER PARISH INDUSTRIAL DISTRICT Armual Financial Report

As of and for the Year Ended June 30,2009

TABLE OF CONTENTS

Independent Auditor's Report

Statement Page

1

Required Supplemental Information (Part T) . Managenient's Discussion and Analysis

BASIC FINANCIAL STATEMENTS .

Government-Wide Financial Statements:

Statement of Net Assets 12

Statement of Activities B 13

Fund Financial Statements:

Govemmental Funds:

Balance Sheet 14

Reconciliation ofthe Govemmental Funcls Balance Sheet to the Govemment-Wide Financial Statement of Net Assets D 15

Statemait of Revenues, Expenditures and Changes in Fund Balances 16

Reconciliation ofthe Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 17

Proprietary Fimd:

Statement of Net Assets G 18

NORTH WEBSTER PARISH INDUSTiUAL DISTRICT Annual Financial Report


TABLE OF CONTENTS

Proprietary Fund (conf): Statement Page

Statement of Revenues, Expenses, d Change in Net Assets

Statement of Cash Flows

H 19

I 20

Notes to Financial Statements 21

Required Supplemental Information (Part II) Schedules Page

Budget Comparison Schedules Notes to Budgetary Comparison Schedules

37 38

Other Supplemental Schedules

Schedule of Condensation Paid Board Members

Schedule of General Fund Expenditures

40

41

Other Reports

Report on Intemal Control Over Financial Reporting and on Comphance And Other Matters Based on an Audit of Financial Statements Pgfoimed in Accordance with Government Auditing Standards

Current Year Findings, Recommendations, and Corrective Action Plan

Status of Mor Audit Findings

43

45

46

Managem^ Letter 47

MICHAELW.WISE, C.P.A. CAFy.OS E. MAFmN. C P A KRISTINE H. COLE C P A

JENNIFER C SWrrH, C P A KRISTIE K. MAFITIN, C P A

JAMIESON, WISE & MARTIN A PROFESSIONAL ACCOUmiNG CORPORATION

601 MAIN STREET P.O. BOX 897 MINDEN, LOUISIANA 71058-0897

(318) 377-3171 FAX (318) 377-3177

WM. PEAHCe JAMIESON. CPA(1991)

MEMBERS

AMERICAN INSTTTUTE OF CERnnED PUBLIC ACCOUNTANTS

SOCIETY OF LOUISIANA CERHFIED PUBUC ACCOUNTANTS

INDEPENDENT AUDITORS' REPORT

To the Board of Commissioners North Webster Parish Industrial District

We have audited the accompanying financial statements ofthe governmental, the business-type activities, and each major fund of North Webster Parish Industrial District as of and for the year ended June 30, 2009, which collectively comprise the District's basic financial statements as hsted in the table of contents. These financial statements are the responsibihty ofthe Districfs management. Our responsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standaixis generally accepted in the United States of America and the standards ^plicable to financial audits contained in Govanment 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 financial statements are fiee of material misstatement An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Aii audit also includes assessing, the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position ofthe govemmental activities, the business-type activities, and each major fimd of North Webster Parish Industrial District as of June 30, 2009, and the respective changes in financial position and cash flows, where apphcable, thereof for the year t h ^ ended in conformity v^th accounting principles generally accepted in the United States of America

In accordance with Govemment Auditing Standards, we have also issued our report dated

December 21, 2009, on our consideration of the Districfs intemal control over financial reporting and on our tests of its conaphance with certain provisions of laws, regulations, contracts and grant agreements and qihsr matters. The purpose of that report is to describe the scope of our testing of.internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on comphance. That report is an integral part of an audit performed in accordance with Govemment Auditing Standards and important for assessing the results of our audit. .

The management's discussion and analysis and budgetary comparison information on pages 3-10 and 37-38, are not a.require part of the basic financial statements but are si^lementary

; infonnation required by accounting principles generally accepted in the United States of , America We have applied certain" lirmted procedures, which consisted principally of inquiries

of management regarding the methods of nieasurement and pr^entation of the required supplementary information. However, we did not audit the mformation and express no opinion ohii

pur audit was conducted for the purpose of forming opinions on the financial statements tiiat .. collectively comprise, the North, Webster Parish Industrial District's basic financial statements.

The infonnation listed as other supplemental schedules ill tiie table of contents is presented for • purposes of additional analysis and is not arequired part ofthe basic financial statements. Such

.. information has been subjected to the auditing procedures qjplied'in the audit of the basic financial statements, and, m om: opinion, is fairly stated in all material respects in relation to tiie

, basic financial statements taken as a whole.

; Minden, Louisiana ^ Dwember21,2009 , '

NORTH WEBSTER PARISH INDUSTRLU. DISTRICT Management's Discussion and Analysis As of and for the Year Ended June 30,2009 (Unaudited)

The Management's EKscussibn and Analysis (MD&A) of tiie North Webster Parish Industrial District's financial performance provides an 6yerallrevie\y, of the District's, financial activities for tiie fiscal year aided June 30, 2009. The intent of this discussion and analysis is to look at the District's financial perfomiance as a whole. Readers should also review the notes to the financial statements and tiie financial statements to enhance their understanding of the North Webster Parish industrial District's financial performance. ,

USING THIS ANNUAL-REPORT :.-

This annual report consists of a series of financial statements. The Statement of Net Assets and the Stateiiient of Activities (on pages 12 and 13)provide information about the activities, of the District as a whole and present a longer-term view ofthe District's finances. Furid financial statembiTts begin on page 14. For govemmental activities, finid statements tell how activities .were firiahced in the short termi as well as,what.remains fqr fiiture speridmg. Fund firiancial stat^ehtis also report the District's opersUioris in more detail -Ihah .the .go statariOTts by prpyidihg infonnation about the District's most significant funds.

Reporting the District as a Whole

The iStatement of Net Assets and the Statement of Activities

-Our analysis qf the District as a whole begins on page 12. On e of thembst irnportaint questions asked about the District's finances is, *Ts the District as a whole better off or worse qfFas a •' result oif the year's activities?"; The Statement of Net Assiets-aiid the Statement of Activities ^ report information about the District as a whole and about its activities in a way that helps answer this question. These statements include all assets and habiUties using the.accrual " . basis of accountings which is similar to the accounting used by most private-sector companies. All ofthe current year's revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report the District's net assets and changes in them.. You can think of ' net assets—the difference between assets and habihties—as one way to measure the District's financial health, or financial position. Over time, increases or decreases in net

NORTH WEBSTER PARISH mDUSTRIAL DISTRICT Management's Discussion and Analysis As oir and for the Year Ended June 30,2009 (Unaudited)

assets are one indicator of,whether its financial health is improving or deteriorating. You.will need to consider other nonfinancial. factors, however, such as changes in the District's ^ property-tax base.and the occupancy and expansion of the industrial paik, to assess the overall health of the District. .

Inthe Statement of Net Assets and the Statement of Activities, we divide the Distinct into two kinds of activities:

.L • ,• Governmental activities .-Most of the Distri : . which mcludes general admiriistratioii and park m^

buildingleases, and state grants finance most of these activities. '•

• :, Business-type activities - The District charges a fee to its tenants to help it cover. the water and sewer services it provides. The District's water and sewer system

• activities are reported here. ,-

I ^ d financial statements

: Fiind financial statements provide detailed information regarding tiie District's most significant activities and are not intended to provide infonnation for the District as a whole. Funds are ,

. accounting devices that are used to account for specific sources of funds. TheDistrict's two kinds of funds - governmental and proprietary - use different accounting approaches. .

• Govemmental funds — l^eDispicfs report i y the.geheral fuiid and debt,service fund.. Tlie primaryppeaations.arere^ in the

general fimd which, ifocus on how money flows into and out of those funds and the balances left at year-end that are available for spending. The debt service fimd accounts for resources used to service long-term debt. These fimds are reported using an accounting niethod called modified accrual accounting, which measures cash Mid aU otheTj^ncncza/assets that can readily be converted to. cash! The govemmental fund statements provide a detaHed short-terrn view of the District's general government operations and the basic services it provides. Govemmental fund information helps you detesrniine whether there are more or fewer financial resources that can be spent in the near future to finance the District's programs.

NORTH WEBSTER PARISH INDUSTRIAL DISTRICT Management's Discussion and Analysis As of and for the Year Ended June 30j 2009 (Unaudited)

We describe the relationship (or differences) between governmental activities (reported in the Statement of Net Assets and the Statehi^t of Act ^ goyermnental Junds in a reconciliation following the fund financial statements.

/Vc'/jnefa/y j^/iiis - When the District charges its teriants for the se provides, these services are generally reported in proprietary funds. Proprietary ; fimds are reported in the same way activities are reported in the Statement of Net , Assets and the Statemetit of Activities. In fact, tiie District'-s enterprise fiind (a cprnponeht of proprietary funds) is the same as the.busineiss-type. activities we • report in the goyemrneht-wide statements but provide more detail and additional information, such as cash flows, for proprietary funds. ".'•'-'-

THE DISTRICT AS A WHOLE

For the year ended June 30,2009, net assets changed as follows:

Current and other assets Coital assets . Total assets

Cunent liabilities Other liabilities Total liabilities

Net assets: . ' Invested in capital assets, net of debt

Unrestricted (deficit) Total net assets

•\:, . ' :-;-\-;:.^, ' 'TabIel'

/NetAssets- -

Goyemmental Business-type

Activities Activities

2009 ' 2008. .. 2009 . ,2008 -

$3,393,103; 8,416:958 •

11.810:061

(224,813) a.774.6351 (2,999,448)

6,094,430

2.716.183 $8,810,613

$3,099342 -• :8;690;239 -11.789,581

(271,467) f2.985.8l6^ (3,257.283')

6,261,994 2.270,304

$L522.22§

;:$^-'747 ; $ ; li505 • 842,958 .- :89Q;169"

843,705 : 891,674.

(851) (1,329)

f85n rK329)

842,958 890,169. n04> 176

$ 842.854 $890,345

TotaL

Primary

Govenunent

2009 _ 2008; ;

..$3,393,850 $3,100,847.; 9.259^916 -9 :58^08

12.653,766 :i2,6«l,255

(225,664) (272,796) f2,774,635) (2.985,816> r3.000.299) (3.258.612)

6,937.388 ; 7.152,163

2.716,079 2,270,480

$?.«?.467 $9,422,643

http://r3.000.299

NORTH WEBSTER PARISH INDUSTRIAL DISTRICT Management's Discussion and Analysis As of and for the Year Ended June 30,2009 (Unaudited)

As mentioned earher, net assets may serve oyer time as a useful indicator of a government's financial position. The District's assets exceeded Habihties by $8,810,613 and $842,854 in ; the goyemmental and business type activities, respectively, at the close ofthe most recent fiscal year. >

The largest portion ofthe District's net assets (72%) reflects its investrnent ui capital assets (e.g. land, biiildings, inachinpry, iand .equipment); less any related debt used to acquire those assets that is still outstanding. The District uses these capital assets to provide infrastructure and buildings to t^iants operating within the industrial park; These assets are not available for future spendiing, iiidess sold to the tenants. ; ^

Unrestrictednet assets-the part of net assets that can be used to finance day-to-day . operations without constraints established by enabling legislation, debt covenants, or other legal requirements - are $2,716,183 in the goyerhmental activities at the end of the current ,. year..'The business-type activitiesfqport-a deficit of $104 in its unrestricted net assets.:

ReyeDues. Program revenues;. Charges for services

General revenues Property taxes Royalties

Investment earnings Otiier revenues

Total revenues

:V'Tabl^2_; _;

Changes in Net Assets

Govemmental Bnslness-type

Activities . . Activities

: 2^09; y - . - m ^ 2009 . 2 0 0 8

$ 492,986 $ 470,938 $ : 10,642 $ 10,333 .

331,982 310,154 -

13,774 16,839 114,925-. 138,699 85.793 113.890 - -

1,039.460 1,050,520 10.642 10,333

' - . . , . . • - " - " - . • • . . ' • . • -

Total

Primary

Government

2009. .2008 ,

:- ; . ; ; ; , : - ; ^ ; ; ; ^ : - : ^

$503,628. $481,271

331,982 310,154 13,774 16,839

114,925 138,699

85,793 113.890 1,050,102 h060,853

NORTH WEBSTER PAMSH INDUSTRIAL DISTRICT Management's Discussion and Analysis As of and for the Year Ended June 30,2009 (Unaudited)

' .•.^•."'Table 2 _,

Changes in Net Assets (cont') Program expenses ^ General govemment, Park maintenance ' Interest on long-term debt Water and sewer

Total expenses.

Exc^s (deficiency) before •'transfers' '•'*" ~

"Transfers • , . • : • - -Increase in net assets .

619,226 \ •. >571 .-

.62,642 ;

688:439

351,021

' (72,706)

$278,315

; 679,182 " 9,375

73,351

• 7 6 t . W

•;'; 288,612,

.••-(31A6D

130.839 94:605 130.839 94:605

(120,197) (84;272)

•; 72,706 . 37,467- -

Sf47,4?l) $(4<5,?05)

619,226 6,571

:62,642/ 130,839 • 819,278...

230,824

S 230.824

• 679.182 ••[• : 9,375

V ^73,351 94,605

•856,513

V 204,340

$204,340

Governmental-type activities

.The net assets oftiie goyemmeritii type.activities increased by $278,315.:. Total •.. . . revenues decreased slightiy in comparison to amounts reported in J)rior year although the ; Distiict recognized increases in ad valonaol taxes.and operating lease income.: TTieDistrict's; lease income increased, due to the execution of anew operating lease which generated , : approximately. $35,000 LQ lease revenues for the year. This new lease ended June 30,2009. •

Total expenses decreased in comparison with prior year expenses. In the,prior year, the District recognised legal.e^ settled in December, . 2008, In addition, the District incurred expenses related toholding the spiecial election concerning renew^ of ad yalorem tax. These expenses did not recur in the "current year.:

Business-type activities

Water and sewer revenues for the District were comparable with the prior year's activity. Depreciation expense accounts, for 36% ofthe total expense ofthe water and sewer system: The water iand sewer system operates through transfers from the govemmental activities.


THE piSTRICT'S FUNDS

Activity for the District's major governmental fund is presented as follows:

Revenues .Taxes •Rental income Oil & gas royalty Iiiterest - / , :•

Miscellaneous Total revenues

Exoenditures

Geoeral government '••. Park inaiirteiiance

Capital outlay

Total expenditures .

FYE 6/30/09 ,. Amount $ •;331,982 ,,

302,666 :•/; ;•-13,774;•:,,

:-..•-• 125,930 ,,. ' . ' ' ' • . - - .

•$ J2A^52. -•

FYE 6/30/09 Ainoiint

/• $ T&2;561 .: :

" / ; ^6,571 ,• , 29,287,'

. $ 198:419 :

Percent ofTotal

43% .

.: 39.%, . : 2 % • .-

: 16%; , 0 % •

.Percent ofTotal

: - .82%:-^

:.: - . e 3 % " --. 15%

.. m%

Increase (decrease)

from FYE 6/30/08 .-21,828

. . 24,693

^:^- :.;• (3.065)- ., : 3,061:-

. -(31,673) ^ 14.844

Increase .., (decrease) ;

from FYE 6/30/08 . '•'--;:(.: (40,336);-;•-:;.•

^;-i(2,864) •;-;"-•:

noi.2on - n44.34n

Percent increase

(decrease)

, ' " ; 7 % • •

,9 % ;. :(18)% ' 2%

(100)% ,:'2;% .-

Percent increase •

: Ydectease)

v: /: . .(2p)% \ ' . : ••:.(3G)%

.(78)%.

: :y: : (42)%

The General Fund experienced an increase of $439,020 in fimd balance m the current year.

Last year, the district received reiinbursements from a tenant for legal expenses incurred during the year;. .Tliese reunb^^ in the miscellaneoiis revenues. ITiis, -case was settled iii December, 2008, and the District no longer receiyed these types of . . paynients during the current year. : . ^ ; ' . ' , . ; •

Ad valorem taxes for.the fiscal year ended June 30,2009, increased due to an increase in the taxable property value of approximately $8.1 milhon.

In the prior year, erp^iditures for coital outlay projects included the costs of roof ; modifications. This year the District's main capital outiay expenditures were for the . extension of a driveway in the industrial park.

The District's proprietary fund statements provide the same type of information found in the


goveriiment-wide financial statements but in more detail.

GENERAL FUlW BUDGETARY ffl

OvCTthecourseof a year, the District revised the General Fund budget one tinie. The , District's only amendment to the original budget recognized an adjustment for the difference between the amount budgeted and actual expenses incurred for accoimting fees.

CAPITAL ASSET AND DEBT ADMINISTRATION

At the Old of June 30,2009, the District had over $13 million mvested in capital assets ; -mcluding buildings, paric facihties, and the water and sewer system. This amount represents anincreaseof approximately $33,136 oyer last year. - •'-••-.•'-

Laiid; : I \ •; $

Construction in progress ; •, Land inq)roveraents ;

Building and ioqjrovements Jn^rovcmenis other than bldgs Equipment

Totals (net of depreciation); .:

- . Governmental •" • Activities .

-•2009 : ; 2008 '•. ;..397,774.$,'397,774

:;-;•- ."• ' 6,128.-' '381,174 ,, 393,853

7,532,286 7,774,019

'.- -r. ' -105,724 118.465

18.416,95? $8,690,239

Business-type .' ;'Activities •

..2009 2008 ; • • $ , ; : ' • - : % : . \ - . '

' • • " - : - . • ' : - " - . - ^ -

' . - ' . -

' ' - . . -842,958 890,169

-'..

$ 842,958X890.169

- . • • - • ' • " • , - . " - v ' :

.^Totais';-;

,2009 :^^: 2008 :. , $ ; 397,774.$/•397,7.74

•y--r: •'••:,6,128

381,174 ; 393,853^ 7,532,286 7,774,019

842,958. -890,169 105,724 118:465

$ 9,259.9 Ii is $9.5?0.408

Thisyear's only addition was: , Land inqjiovements-access road $2202^

Debt

The North WdDSter Parish Industrial District issued Industrial Revenue Bonds to prpvidie financial assistance to a private-sector entity for the acquisition, construction and installation,of a manufacturing facility deemed to be m the public interest. The bonds are; secured by a $2,900,000 Letter of,Credit, revenues received in connection with the leasing of the facility, revenues of the District in excess of the statutory, ordinaiy and customary expenses, and any economic development tax ofthe District As of June 30, 2009, the District had $2,315,000 in

NORTH WEBSTER PARISH INDUSTTUAL DISTRICT Management's Discussion iand Analysis As of and for the Year Ended June 30,2009 (Unaudited)

debt as compared to 52,425,000 last year. No new debt was issued during the year.

More detailed infonnation about the District's long-term liabilities is presented in Note 10 to the fimancial statements. -•:

ECONOmC FACTORS AND ISDE^^

North Webster Parish Industrial District does not expect economic factors next yeai" to be. sigoificantly different fix)ia the cumnt year, \vith ^ probable closure ofthe Trane facility in the summer of 2010 winch Was just announced . subsequent to this audit. Current year historical figures were used as a basis for the 2009- : : 2010 fiscal year budget. It is likely that tiie 2009-2010 budget will be updated when N\yPip is officially notified ofthe Trane facility closure and more actual details of.Trane's plans are . •known. - • ' ,-•

COOTACTING THE DiSTTHCT^S FIN

This financial i*eport is designed to provide bur.citizens,,taxpayers, customers, and creditors , with a general overview of the District's finances and to shov ' the District's accountability for. the rhpney it receives. If you have questions abo.ut this report or need additional infomiation, contact tiie District's.office at PO Box 176, Springhill, Louisiana, 71075, (318) 539-5058. . . .•

10

BASIC FINANCUL STATEMENTS

STATEMENT A

NORTH WEBSTER PARISH INDUSTRIAL DISTRICT Statement of Net Assets June 30, 2009

;.• ASSETS ;. • ; Current assets: • Gash and cash equivalents

Investments. Receivables (net of allowances for , uncollectibles) Prepaid items. Deposits ,

Noncurrent assets: , Capital assets (net)

Primarv Govemment . Governmental Business-Type . ' . Activities' • • Activities

$ 363,062 $ 2,339,694 ,.. -

, .; 669,953 \ 747 . 19,922 , . -

472 - ;

Total-

$ 363,062 2,339,694

;. . .;670,700 ^ ; ; 19,922

,.;':.472

8,416,958 842,958 ,-9,259,916

Total assets $ 11,810,061 $ 843,705 $ ,12,653,766

LIABILITIES Curreiitliabihties: . -^ •, ./ . Accounts, salaries, and other payables . ipeferred revenues . .

Bonds and interest payable

.Total current liabilities

Noncurrent liabilities: Compensated absences

, Deferred revenues Bonds payable

Total noncurrent habilities ! :

Total liabiHties ;; ...

$ 4,598' $

... 92,687 r \ 127,528 : . '

- 224,813 : - :.^^ '

3,068 576,567

: 2,195,000V . -

• ^^2,774,635 :. :.•

$ -2,999,448: $ ; .

,851

851 .

" • • • - - ' •

: -m

,$., :.' •••5,449 ;.v. -vr •92i68T

^ • "127,528

- • .225,664^

':- 3,068 576,567

.2,195,000

• ::2,774,635

.:$.::-3,000,299

' -• .NETASSETS . Invested in capital assets, net of related debt Unrestricted (deficit)

$ 6,094,430 $ 842,958 $ 6,937,388 2,716,183 (104) 2,716,079

Total net assets $ 8,810,613 -$ '842,854 $ .9,653,467

The accompanying notes are an integral part of this statement.

12

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13

STATEMENT C

NORTH WEBSTER PARISH INDUSTRIAL DISTRICT Balance Sheet Goyemmental Funds June 30,2009

• ' • • . ' . . ' • . • ' - ' . ' • • • • ' , - - ' ' ' • - . . * . ' -

• • * . ' . * • • • ' - ' • ' * , - . ' . • , • - . • ' ' ,

• . - • • . - - • • - • • - . • - - . • - - . - • " • . - . • •

'"••'••••ASSETS '. • '• Cash and cash equivalents Investments Receivables (net of allowances for

uncollectibles) • Deposits

Total assets :

LIABILITIES AND FUND BALANCES Liabilities: . . . . Accounts, salaries, and other payables Deferred revenue

,r Total liabilities

General :. Fund

-''.. . . $ :249,595

2,339,694

:; 654,003 , 4 7 2

$ 3,243,764

$ 4,598, .669,254

. .673,852

Debt Service . Fund.

. ;:Indiistrial Revenue Bonds,

-Series 2001

$.;• --113,467 ' , • • . " . . ' • . . • _ - .

• • ' . • • ' . - - • • - - •

- • : " . • * • . , • • - .

- ' • " • ' • • • • • • - .

$. 113,467.

• •: . - ' . '

$ ; ' ^ " , . . - - • - .

- . V - : •' -••

' - : ' • • / ' • • : • ^ • ' - - . • ' • ' " - - .

• Totkl. • Govemmental

Funds

$ : 363,062 2,339,694

" • - . :

: 654,003 ••••,•••" 472

$ .. 3,357,231'

• ' • , , . ;

$ 4,598 669,254,

.'•"•^ 673;852-

Fundbalaiices:.:, . Reserved for: ;

Debt service Unreserved, reported in: General fund

Tota,l.fund balance

Total habihties arid fund balances

113,467 113,467.

2,569,912

2,569,912

$ 3,243,764 $ _

- , 2,569,912

113,4i57 . 2,683,37?

:;il3,467 $ 3,357,231

The accompanying notes are an integral part of this statement

14

•STATEMENTD

NORTH WEBSTER PARISH BVDUSTRm. DISTRICT

Reconciliation ofthe Govemmental Funds Balance Sheet to the Government-Wide Financial Statement of Net Assets

Jnne30,2009

•Airiouhte reported for governmental activities in the Statement of Net ^^

Fund Balances, Total Govemmental Funds (Statement C) , .$ 2,683,379 •:.. .

Capital assets used in govemmental activities are not financial resburcesanc^thCTefore, are not reported in the govenimental funds . i . .8,416,958 ,

Other long-term assets are not available to pay for current period expenditures .and tiiereforie are deferred in the fimds , . .19,922 ; :,

Other assets used in goyemmental activities that are not financial resources and, therefore, are not reported in the governmental finids 15,950

Ix)ng-tenn habihties diat are,not due and payable in the current period . Md, therefore, are not,reported in govenimental funds:

- vCpmpensiated ; $ ... (3,068) . . .\.^,^^'^^.. . ; , : . Bpndsandinterest,payable ^ : , (2,322,528) (2,325,596)" - \

Net Assets of Goyerrmental Activities (Statement A) • ; $ 8,810,613


15


Statement of Revenues, Expenditures and Changes in Fund Balances

Govemmental Funds

STATEMENT E

For the Year Ended June 30, 2009

:REVENUES, ,-; Taxes; -""-'-•

Ad valorem : Rental income : Oil & gas royalty Investment eamings , ^

Total revenues

EXPJEIWnURES ,General government , Park maintenance . ,. , , Capital outlay "• . Debtseivice -. -

Total .expenditures

Excess of revenues over expenditures

OTHER FINANCING SOURCES (USES) Pass throiighrepayments toLED Lease-principal jpayments Transfers in/(out) .

Total other financing sources and uses

Excess oif revenues and other sources over expenditures and other uses

General Fund

$ 331,982 302,666

13,774 125,93.0

, 7 7 4 , 3 5 2

162,56.1. .."• -6,571; • : 29,287 ;

• " - , - * ' , ' - - •

198,419 .,

. Debt Service ,. Fund

Industrial . Revenue Bonds,

Series 2001

. $ , : " ^ , ' " • • ' : • - " •

. 181,856. • • • , • " - / •

.'•747 •

.182,603

- - • *

" • ' ' " ' • " • , ' - - " , - • ' - " ' • " ' - • ' - • , • ' :

'.-.'' i '"• ;• -.'-.'

.•••-•:•. 172,689

V 172,689 :•

Total Governmental .

Funds '-•'-

,,$ •• ,331,982 -- 484,522

• -.13,774 126,677

956,955

: ,162,561 ':v;v. •'.•-- 6,571: :- .29,287

. - ; ; 172,689

•, . 371;108

575,933

(150,000) 85,793

(72^706)

(136,913)

, 439,020

9,914 585,847

(15,0,000) '•85;7?3/ (72,706)

(136,913)

9,914 448,934

Fund balances - beginning

Fund balances - endinjg 2,130,892

$ 2,569,912 $

103,553

113,467

2,234,445

. $ 2,683,379


16

STATEMENT F


Reconciliation ofthe Statement of Revenues, Expenditures, and Changes in Fond Balances of Govemmenta] Funds to the Statement of Activities

For the Year Ended June 30, .2009 ;

Amouiits reported for govemmental activities in the Statement of Activities are different because:

Net Change in Fund Balances, Total Gpvemm^atal Funds, Statement E $ 448,934

Goyeromehtalfiinds report capital outlays as expenditures. However, in the:,. stetemerit of activities the cost of those assets is allocated over their, estimated -useful livesandreported a^idepreciatioii expense, This is the amount by which capital outlays exceeded depreciation in the current period.

Revenue in the statement of activities that.do not provide current resources are not reported as revenues in the fundiS .

(273,281)

(3,288)

The issuance of long-term debt (bonds, leases, etc.) provides current financial resources to.govemmental funds, while the repayipent ofthe principal of ,.• long-teim debt coiisinnes the cunrent.fini^

, fimds.-NeitiiCTtransactip^^ is the net effect of the differences ia the treatment of long-tenn debt. * 110,000

Some expenses reported in the stattimait of activities do hot require the use of current financial resources and, therefore, are not reported as experiditures in governmental funds (4>050)

Change in Net Assets of Govemmental Activities, Statement B $ . 278,315


17

STATEMENT G

NORTH WEBSTER PARISH INDUSTRIAL DISTRICT iStatement of Net Assets, Proprietary Funds June 30,2009

ASSETS' CXirrent assets: Accounts receivable

, , Total current assets

Noncurrent assets: Capital assets (net of accumulated depreciation)

, Total nbricurrent,assets

/Total assets

LIABILrr iES

Current habilities:

Accounts payable;; .

- Total current liabilities . Total habiliti^ , "'•''.

•'-:-• NET ASSETS'. -V / ' '

Invested in coital assets

Unrestricted

Total net assets ' .

Business Type . Activity Water and

Sewei" ,

. $ 747 •

• ,- • -747:.

842,958 ;

842,9i58

^$ • 843,705 .

851:

, V : ^ : - • 8 5 1 ' :

$ • -•'^--ssi ••

842,958.

- 7104) $ 842,854


18

StATEMElSTTH NORTH WEBSTER PARISH INDUSTRIAL DISTRICT Statement of Revenues, Expenses and Changes in Net Assets Proprietary Funds For the Year Ended June 30,2009

Operating revenues: Charges for services

Water and sewer iQCome

Total operating revenues

Operating'expenses: Contract labor

^tJtilxties".^ "•'••••' ' .•:••-' Telq)hone;. Testing fees Repahs and maintenance Sales'tax ' . Depreciation..;. - 3 - . : ; . . ,

Total pperating expenses

Operating incoine (loss) before contributions ^ d traii^fers

transfers in

Change in net assets

Net assets - beginning

Net assets - end of year

Business Type Activity .

Water arid • Sewer-

10,642

. 10,642

:, . -: 9,600.

11,198

- :. . 580

1,00.8

,60,960

283

. : / 47,2i0:

:.' 130-839:

• :: (120,197)

72,706

(47,491)

.,.:: 890,345:

$/ • . '842,854-

The accompanymg notes are an integral part of this financial statement

19

NORTH WEBSTER PARISH INDUSTRIAL DISTRICT Statement of Cash Flows Proprietary Funds Years Ended June 30,2009

STATEMENT 1

Business Type - Activity

Cash flows from operating activities: Cash received fi'om customers Cash payments for siqjpUes,and services

. Net cash used by operating activities .

Cash flows from noncapital financing activities:

Jrahsfcr fi-om other tods \

Net cash provided by noncapital financing activities

Net iocrease (decrease) in cash and cash equivalents

Cash and cash eqiriyalents at beginmng of year

Cash and cash equivalents at end of year ;

Water and ' -, Sewer

.$, .: 11.4.00 (84,106)

-(72,706)

. -. .72,706 .

• '72,706,,

- • -

• - $ •-' _ -

Recohciliation of operating loss to net cash used by operating activities:

Operating loss ,

Adjustmients to reconcile operating loss to net cash used by opCTating activities Depireciatipn . ' :\'-\-

• Increase (decrese) in accounts payable (Increase) decrease in accounts receiv^le .

(120,197)

47,210. (477)

. -758

47,491

Net cash used by operating activities (72,706)

The accompanying notes are an integral part of tiiis financial statement

20

NORTH WEBSTER PARISH INDUSTRIAL DISTRICT Notes to the Financial Statenients


INTRODUCTION

The North Webster Parish Industrial District was created as a pohtical subdivision of the state, under the provisions,of Act No. 422 ofthe 1978 regular session ofthe Lbiusiana Legislature. Its territorial limits and jurisdiction extend throughout Ward Two of Webster Parish in.the northwest comer of the State of Louisiana.

The governing autiiority of the District is a Board of (Commissioners consisting of seven ..meiTibers,'two of whom are appointed by tiie City of Springjiill, one each is appointed.by the rhunicipahties of .C illen, Sarq)ta, Shongaloo and Cotton Valley, and one is appointed by the Webster Parish Potice Jury. Each commissioner serves for an indefinite term bf ,6fiBce at the pleasure of the j^pointing authority.

The District is provided the powers and duties to incur debt and issue bonds to encpur^e

industrial enterprises throiigji the operation of ; .

l.Summarv of Significant Accounting Policies

A. Government-Wide and Fund Financial Statements -'•'.

The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information pnall of ,the nonfiduciary activitiespf the North Webster Parish Industiial District For the most part, the effect of interfund activity has been removed .fi'om these statements. Goveriuneatal activities; which normally are support^ by taxes and intergovernmental revenues, are reported separately frorn.business-type activities, which rely to:a significant extent on fees and charges for supports

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable ^ t h a specific function or. segment. Progium fevraues include 1) charges to customers or apiplicants who purchase, use or directly, benefit fipm goods, services,, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or coital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

21 - : . .

NORTH WEBSTER PARISH INDUSTRIAL DISTRICT Notes to the Financial Statements

As of and for tiie Year Ended June 30, 2009

Separate financial statements are provided for govenunental fimds and proprietary funds. All mctividual governmental, fimds and individual enterprise fimds are reported as separate columns in the fund financial statements.

B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

Tlie .-governmentT^yide financial. statements are reported using the, economic resources measurement focus and the accrual.;basis of, accounting, as are .the proprietary fund statements. Revenues are,recorded when earned and expenses are recorded when a liabihty is, incurred, regardless of the tinimg of related cash flows. I^jierty.tax recognized as revenues, in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met

CjoverBmental; fund financial statm are reported using, the current finaiicial resources measiiremerit focus and the, modified accrual basis of accounting.-. Revenues are recognized •as soph as they are both measurable and available, Revenues are considered to be available when they are collectible within the .current period or .soon enough tiiereaiEler to pay habilities : pf the current period. For this purpose, the govemment considers revenues to be avaiiable if they are collected within 60,days of the end pf the current fiscal period. Expenditures generally are recorded when a hability is incurred, as under accnial accounting. However, debt seirice.expenditures, as well as,expenditures related claims and judgipents, are recorded only when payment is due.-; .; V

Property taxes, rental income, royalties arid interest associated with the current fiscal period are all considered susceptible to accrual and so have been recpgnized as revenues of the current fiscal period. Only the portion of special assessment receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.. All other revenue items are considered to be measurable and available only when cash is receiyed by the govemment.

The District reports one major govemmental fimd. The (jeneral Fund is the entity's primary operating fund. It accounts for all financial resources ofthe entity, except those required to be accounted for in anotiier fund.

22

NORTH WEBSTER PARISH INDUSTRIAL DISTRICT Notes to the Financial Statements .

As of and for tiie Year Ended June 30, .2009

The District reports one jproprietary. fund. . The Enterprise Fund (^Yater&. Sewer) is.used to account'fproperatipns (a) tiiat are financed,and operated in aimanner similar tpprivatebusiness enterprises where the^ iiitCTt' of ttie goyea^^ is that the coste. (e?q)enses, including depreciatipn) of providing goods or services to the general pubhc on a continuing basis be financed or recovered primarily through user charges; or (b) where the goveming body has decided ithe pericKiicdetenninatiori of revenues earned, expenses incurred, and/or net income is ^rppriate for capital rnaintenance, public poticy, management control accountabihty, or other

-jpurposes ;- _ ':•.'•''•'--'•'-••:'' ' ' ' ' ' ; •"; '

Private-sector standards of accounting and, financial reporting issued prior to December 1, 1989, generdly are followed in both the goveniihent-wide and proprietary fimd .financial staitements to the extent that those standards do not cpnflict with or contradict guidance ofthe

: Govemmental Accountiag Standards Board, (joyemments also have the optioii of following subsequent private-sector guidance for their business-t}^e. activities and i.enter funds, subject toihe same liinitatipn.'rTh.e goyerimient has elected not to foUow subsequent priyater

•,sector'guidance.';:.-" ,;-••,••:_;,' "j :',\: ' ;••••;•;•"•.'"

As. a general rule, the effect of interfimd:activity has been eiirnmatedirom the g^ wide financial statements. Exceptions to this general rule are payments-in-heu of taxes and other.charges between the. government's enterprise operations.. .Eliminations of these charges would distort direct costs and program revenues reported for the various fiinctions concerned.

Amounts reported as program revenues include ,1) charges tp customers; br^phcants .for goods, services, or. privileges provided, 2) operating grants and contributions, and 3) coital grants and conhibutions, including special assessments. hitemaUy'.defeated r ^ reported as general revenues rather than as program revenues. Likewise, general revenuies include all taxes.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and dehvering goods in .connection with.a proprietary fund's principal ongoing operations.. The principal operating revenues pf the prpprietary fimds are from charges for water and sewerage services. Operating expenses for enterprise fimds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

" 23 .

NORTH WEBSTER PARISH ESIDUSTRL^L DISTRICT Notes to the Financial Statements

As of and for the Year Ended June 30, 2009

When both restricted and unrestricted resources are available, for use, it is the District's pohcy to use restricted resources first, then unrestricted resources as they are needed.

C. Deposits and Investments .

.The District's cash and cash equivalents iiicludes amounts considered to be demand deppsits and diort-term investments. Statelaw and the District's investment pohcy allow the distiict to invest in coUatersQized certificates 6f deposits, govemment back securities, commercial p qaer, . the state sponsored investment pool, and mutual funds consistmg, solely of government-backed

•securities. \- '•'

Investments for the district are reported at fair value.

D. Receivables and Payables .

: In the government-wide statements, receivables consist of all revenues earned at year-end and npt yet received Major receiykble balances for the govemmental activities include grants, lease reveniies, and interest

Business-type activities report utihties as their major receivable. The District considers substantially all ciistoiners' utility receivables and.other receivables to be fidly.collectible; accordingly, an allowance foi* doubtful accounts is riot required. If amounts become uncollectible, in the opinion of management, they are charged to operations at that time.

In the. fund financial statements, material receivables in govemrneiital funds include revenue accruals for lease payments and other intergovernmental revenues since they are usually both measurable and available. : Nonexchange transactions collectible but not available are deferred in the fund financial statements in accordance with modified accrual, but not deferred in the govemmait-wide financial statements in accordance with the accrual basis.

Ad valorern taxes attach as an enforceable hen on property, as of January 1 of each year. Taxes are levied and collected by the tax collector of the Parish of Webster, taxes arc levied in September or October, and are actually billed to the taxpayers m November. Billed taxes become delinquent on January 1 ofthe following year.

24



The tax levy for 2008 was 4.54 mills of the assessed property valuation on tax rolls as of January 1. For the year ended June 30, 2009, taxes of $336,189 were levied on property with assessed valuations totaling $74,050,460' ,

E. CapitalAssets

Capital assets, which include; property, plant, equipment, and infrastructure assets (e.g. roads, bri.dges, sidewalks,; and similar items), are reported in the apphcable governiinental or business-type activities columiis in the government-wide financial statements. Capital, asseits, are.cajpitahzed at historical cost or-estimated cost if historical cost is not available. Donated, assets are recorded as coital assets at, their estimated fair market value at the date of donation. The District maintains,a threshold level of $2,500, or more for capitalizing capital assets. • -

The'costs of normal mauitenance. and repairs that do not add to the value of the asset pr materially extend asset lives are riot capital :.; -

Major biitiays for capital assets and improvements are capitalized as prpjects are constructed.

All capital assets, other than land, are depreciated using the straight-tine rnethod; over the following use:ful hves:. : ; ,

- ' - - • . " • • - - - • • • - - . " - ' ' . ' - ' " ' '

Description-Land i inprovements . . . ,^ , ; ' , : . Buildings and building improvements Equipment

.Estimated Lives'

20-40 years 10-40 years 5-20 years

25

NORTH WEBSTjER PARISH INDUSTRIAL DISTRICT Notes to the Financial Statements

As of and for tiie Year Ended June 30,2009

F, Compensated Absences

The District's policy for paid time, off permits fiill-time employees to accumulate earned but unused vacation/sick time.. The arnount of paid-time off an employee is eligibie for is determined by ^amount of tirne of service for the District , The.employee is allowed, to carryforward to the next calendar year up to 15 days of earned paid time off if workload dict^es and witii ^ r o y a l by the manager.

2. Stewardship, comphance and accountabihty

Budget information The District uses the following budget practices:

1) The admiiiistrative assistmt prepares a proposed budget and submits same to the Board of Commissioners no later than fifteen days prior to the beginning of each fiscal year.

2) Aftei forrhal review and piibUc inspectiori, the budget is adopted by the Bpaixl of v ; , - Commissioners prior to Jime 30 offc

3) Fonrial budgetary integration is employed as a maiagement control, device during the. , year for the general fimd. Budgetary arnendments require the approval of the Board pf Commissionere. The Board of Commissioners, is authorized to ,transfer amounts between line items within any fiind. . .

y : 4) The .budget for. the general fund is adopted on a cash basis, .\yhich is a comprehensive basis bfaccounting other than ge»eraUy accepted accounting principled (GAAP)..: .-^

5) Appropriations lapse at the end of each fiscal year.

6) The Board of Commissioners may authorize supplemental appropriations during the year.,/'

26



The revenuKS and expenditures, for the year ended. June 30, 2009, as .shown on Statement E, are reconciled with the amounts reflected ori the budget comparisons on Schedule 1 as follows:

(jeneral Fund

- . -Year ended June 30,2009:

Excess ofrevenues and other finaiicuig . sources over expenditures and other

,.; uses (Fimd Basis) $439,020

To adjust for: (Increase) Decrease m receivzdjles .. .1,474 Increase (Decrease) in payables , . 1,592 .

;.' . .. Excbsspfrevemii^^ "",'-•[:-.:- / . \ firiancihg sources over expe^

T: : / ; "^othd^uses(Ga^ ^ . • ,. ; $ 442X)86 .p;

3. Cash and cash equivalents

At June 30,2009, the District had cash and cash equivalents totahng $363,062 in interest " bearing demand deppsits. . ,

These deppats are stated at.cost,,wMch approximates^^ Under state law, these deposits,; or the resulting bank balarices, mUst be secured by fedCTal deppsit insurance or the pledge of securities owned by the fiscal agent bank. Themaiket value of tiie pledged securities plus the federal deposit insurance must at all times at least equal the amount on deposit with the fiscal agent These securities are held in the name of the pledging fiscal agent bank in a holding or custodial bank that is mutually acceptable to both parties,

,At June 30, 2009, the District, had $2,705,824 in deposits and certificates of deposit (collected bank balances). These deposits were secured froni risk by $863,467 of federal deposit insurance and $1,706,013 of pledged securities held by the custodial bank m the name ofthe fiscal agent bank (GASB Category 3). At June 30, 2009, the remaining balance of $136,344 was not secured by the pledge of securities and is a violation of state law.

, 2 7



Even though the pledged securities are considered uncollateralized (Category 3) under, the provisions of GASB Statement No. 3, Louisiana Revised Statute 39:1229 unposes a statutory requirement on the custodial bank to advertise and seU the pledged securities wdthin ten days pf bemg notified by the District that the fiscal agent has failed to pay deposited funds uppn danand. ; -':-•

4.. Investments

At fiscal year-end, the District's mvestnient conisisted of $2,339,694 in.certificates of deposit The carrying value ofthe District's certificates of deposit approximates fair market value.

Investments are categorized as insured securities held by the. District or its agent in the District's name. Most certificates of deposits are secured from risk by federal deposit insurance arid pledged securities held by.the ci^stpdial.bank iri the name, of tiie 'fiscal .iagent bank.(GASB Category 3.) However, as previously stated in Note 3, a balance of $136,344 was not secured by .the pledge of securities and is a violatioii of statelaw.

5. Receivables

The receivables ofthe government-wide financial statements at June 30,2009 are as follows:

Oil and gas royalties •, Ad valorem taxes Interest receivable Lease paymejnts receivable A/R - water & sewer

Total

. Governmental , . , .$ : . 823:.

. - • ' • • ; , : 31 ' ' 6,711

662,388 _

S 669.953

Business-tvpe

; .$. .. - J : ' - ' . V . : ' '• - :-.

747 $ 747

28

NORTH WEBSTER PARISH INDUSTRIAL DISTRICT Notes to the Finaiicial Statements

As of and for the Year Ended June 30, 2009

The receivables ofthe governmental fuiid financial statemonts at June 30,2009, are as fpllpws:

Oil and gas royalties Ad valorem taxes / Lease payments receivable

. : Total

-General Fund ..'; -.$ , -823

31 653,149

$654,W?

Lease, paynients receiyable are reported net of uneamed interest income in tiie, amount of $197,931., The only receivable not expected to be collectedwithin one yearis $555,148 of a lease, receiyable'due fix)m:.The. Trane Company through a;capital lease of.a building and imprbv^ents. All receivables are considered fully collectible and, therefore, rib allowance for uncollectible amounts is providai. If amounts, become uncollectible, they are charged to operations when that detennination is made.

6. Capital Assets ? . - -'/; "'. y : ) ' ' ' • : ' / •'.-'., "• '" '" ' - ^ ,'--'-• r ;.'"-'; '--:"'-'•''•/•''''.':?-

Capital assets arid'.depreciation activity as of and for the year district is as follows:.; \

Begimiing Balance

Govemmental activities: Capital assets, not being depreciated

l^d-v . - - - : -^•.;:- ^^•. .;;,;' $, .397,774..;. Constructioii in progress ' 6.128 ,, Total capital assets, not being depreciated 403,902

Capital assets being depTwnated ,

Lahd in:5)rovements 1337^18 Buildings and inprovements 9,305,491 Machinery and equipment 198.431

Total capital assets being depreciated 10.841.140

Less accumulated depreciafion fiar:

Land itcprovwnenls 943,364

Building and in:5)rovements . 1,531,471

Machinery and equiprmmt 79,967

Total accumulated depreciation 2.554,802

Total capital assets being depreciated, net $ 8,6^.240

29

Additions

, • • -

$ : . - • - - .

' - ' . ' ' _

33,136,

-_

33.136

, .45,816

241,733 12,741

300,290

elided June.30, 2009, for tiie : , • • • - - • - , , • : ; . , . • ; • . • . • , •

'•"•:.••: Balance "" "• Deletions - June 30.2009

': .$ .;. .. --... ; .$ :• 397,774 ; • - • : - " 6 . 1 2 8 ^ : ' - - : ^ ""-•-• : -•

•^•6.128 : •;' 397.774. ••

,- U70354. . - 9,305,491

198.431 - . 10.874.276

. - ; , 989,180, 1,773,204 ,

9Z708

2,855.092

SJMm .$Ml6.95?i

NORTH WEBSTER PARISH INDUSTRIAL DISTRICT Notes to the Fiaancial Statements


Biisiness-type activities: Coital assets being depreciated Inprovements other than buildings

Less accumulated depreciation fOT:, ln5)n)vements other tiian buildings

Total cq)ital assets beicg depreciated, net

Beginning Balance

$1,744,621 '

. J54,452

$890,169

Additions ,

$ . . : . ' •

47,211

. .t V47.2in •

Deletions

,. $ , - '^

' $ ' • - - ' .

Balance,, : .June 30,2009

$ 1,744,621

901.663 ,

$ §42,958'

Depreciation expense was charged as a direct experise ofthe primary government as follows:

Goyemmental activities: General government S 300.290

Business-type activities:

Water & sewer $47.211

.7. Operating transfers

Operating transfeirbalahcesforthe.year ended Jurie 30,2609j were as follows:

Operating Transfer

. M OUT $ . -- $72,706

72,706 . __^_i General Fund Enterprise Fund

•$ 72.706 ;$ 72.706

8 : Leases,

The District leased four builduigs.and an office facility tp corrrpanies opo'ating in tiie park. The primary terms ofthe leases range from two years to fifteen years with, in some cases, options to. renew. The District has, granted an option, within the prinaary term of the lease, for the lessee to purchase said building in all leases except for the operating lease on Building #4 and the chnic.

30

"•e^ear Ended June 30, 2009 Thefol]owingisff,p„ , -

. . ^ - ^ e n e t ^ v e s t o e n t i n e a c h b ^ ^ ^

Bmi(3iag l ^ ^ ^ . A/Dasof

, ,, :SwIdfflg-Cto, ... ,„ • ,^., . - ••. 2.822362 ^^'"^

, i s y ^ ^ ^ " ^ ' . ^ r : , ; , ; - : • , , , ; 30.501

-••••••••V • : ' \ ^ ' ^ • : • • • - . • : / • :".;••- ^ - ^ m m - ' - ^ - - ' > - . ^ • - • - • '

- ''-'• ' •• •'• ••'"'• • •'•' • • '•• '•• "• ••Cost" • ' ' • ' ' ' - ^ • ^ • ^ • y - ' - ^ ^ ' -

^ « following is a 3ch^ :--•' . : . ^m^y • • $ ^ / • ,r

4,500 f ' ' ' ^ 5 $ 55,406 $ 2 3 y ^ c ^ ^ I sW :.' , - 230,955 53^425 " ' ^ ' ' ^ $ 334,901 :

- 234,667 SIM9 - 8 . 4 6 4 297,347 . : • : 238,4]3 49^47; ' * ' ^ 294,580 . . • 241,719 , 47^493 " ^ ' ^ 2 9 6 , 3 4 8

_ ^ - ',243,124 207,786 ' • : ^ ' ^ / 297.676: • -^ . ' — ^ ^56,241 ^ 8 5 ^ : : - '0'578 : 1.461.488 : , yoWnrinimunj ~ -" . r . ^641.588

lease payments j n j O O «on„

31

NORTH WEBSTER PARISH INDUSTRIAL DISTRICT Notes to the Financial Stateraents

As of and for the Year Ended June 3 0,2009

9. Direct Financing Lease

The District entered into a direct financing lease with The Trane Company, a division bf : American Standard Manufecturing, Inc. The original contract of lease was amended to expire June 30,1998. Trane has 4 consecutive options to extend the lease for additional 5 year tisim.. At the end of each lease term, Trane shall have the option to extend the lease for 5 additional years, purchase the building at the.i^plicable principle balaiice or terininate the lease.

The terms of tiie lease allow a monthly lease payment for the Spec #3 building pf $6,252 pe^ mpnth, which is the eqiuvalent of the building pinchase price of $810,000, amortized oyer 25 years at 8%. Montidy rental payments shall be apphed to building principle and interest tp reduce the building piircliase option.

In additioii, the District provided $702,000 for construction to expand andjunprove the leased facilities: Trane is repaying this amount oyer 15 years in an additional lease payment of $4)500 permonth. ;••-: ' ; . . '• .• '••:. . •: • . - .--,V' ' " \-. -O;' , ' ^ , V"5-, ; .•,:'•'• ^

The followng is a sched.ule of future minimum lease payments under the capital lease and the present value ofthe minimum lease payments as of June 30,2009:

Total minimum lease payments, 4 864,187 ,-., . I ^ . s amount .Tq)resentingunea^ . (197.931)

. Net investment in d^e^^ . - $ 666i256 .

At June 30, 3009, minimum lease payments for each of tiie five succeeding fiscal years are as follows: ;

Year Amount 2010 $ 129,021 2011 . 129,021 .2012 ''^['_ .129,021

2013 , 102,021 / 2014 75,021

Remaining due 300,082 Total $ 864.187

32



Please refer to subsequent event disclosed at Note 12.

10. Long-term obhgation

The followmg is a summary ofthe change in long-term debt for the year ended June 30,2009:

Balance Additions/ Balance Amount due Noncurrent July 1. 2008 (Deductions^ June 30.2009 wifcin one year liabilities

tvi>e of debt

Governmental activities: Industrial revenue bonds

Con^jensated absences Deferred revenues

Total

$ 2,425,000

4,563 755,046

$ 3.184.609

$(110,000) (1,495)

• (85.792)

$(122^12)

$2,315,000

3,068 669^54

S 2.987.322

$120,000 .

-92,687

S 21,2.687

: $2,195,000.

3,068 576,567

-,,$2,774,635

Bonds payable at June 30,2009, are con^rised ofthe foUowing individual issues:

Principal Outstanding

Interest to

Maturity

$2,900,000 Revenue Bonds, dated July 1,2001; , Due in annual instaUments of $85,000-250,000; Interest at an adjustable weekly idterest rate based on the prime rate $2,315,000 $719,894

The North Webster Parish Industrial District issued Industrial Revenue Bonds to provide financial assistance to a private-sector entity for the acquisition, constmction and installation of a manufacturing facitity deemed to be in the pubhc interest. The bonds are secured by a $2,900,000 Letter of Credit, revenues received in connection with the leasmg of tiie facihty, revenues ofthe District in excess of the statutory, ordinary and customary expenses, and any economic development tax of fhe District.

33

. NORTH WEBSTER PARISH INDUSTRIAL DISTRICT Notes to the Financial Statements


The armual requirements to amortize all debt outstanding as of June 30,2009, including interest payments of $719,894, are as follows: ..

Year ending June 30

2010 2011 :

: 2012

. 2013 2014

2015-2019 2020-2021

Revenue Bonds

Principal . $-120,000

. , , : : 130,000 . -135,000,. •; 145,000 ; .U55,000/ , 925,00Q; ,

705.000

Merest $ 97,688 . 92,092 ^

86,221: 79,966 73,2,72

250,588 40,067 .

Total $ 217,688

222,092 .•, ;:.,221^21.

224,966 . :228,272 1,175,588

745,067 $2.315:0Q0 $719.894 $3.034.894

l l . - Pass tiuDiigh payments reported as <^er Fmaioicing Soii^^ (Uses) .

On .June 4, 2004, a contract was executed between the Louisiana Dep.artniiint of Economic Development (LED), Continental Structural Plastics of Louisiana, LLC (CiSP), and the North Webster Parish Industrial District (District). The contract was to award a grant of $1,800,000 thixjugji .the LED Economic,Development Award Program for the piirpbse,of ftuidingliie •construction of a,37,500 square foot additiori to an existing plant facihty, owned by the District •^dleasedtoCSP.-/" " •,";;. ':-' [ •--'_-''- .:-• "•"-^"-y.':',",-''"

The contract requires CSP to exeksutewith the District a lease containing a comrnitment to occupy the addition for its manufacturing purposes, and repay the awarded funds tibrou^ 144, consecutive monthly lease payments oyer a 12 year term in the amount of $12,500 each, beginning with CSP's occupancy ofthe addition, to be paid to the District, which will act as a '*pass through" pr a "conduif and forward all lease payments received from CSP ..to LED in repayment ofthe grant.

During the year ended June 30, 2009, the District received twelve (12) mstallments of $,12,500 from CSP totaling $150,000 which was recognize as rental payments. The same amount was remitted to LED for tiie year ended June 30,2009.

34



12. Subsequent Events

During December 2009, Trane. announced that, it .would, close the plant in Springhill and relocate to Mexico by May 2010. Following the announcement, discussions between Trane and the District began to assesis the decision of the closure arid its affect on the current leasing arrangements. As pf the datebf the report, no determinationhas been made regarding the status ()ftiie direct financing lease described in Note 9. , . . . . : - :

35

REQUIRJED SUPPLEMENTARY INFORMATION

Required supplementary inforination includes financial infonnation and disclosiires that are required by the GASB but are not considered part of the basic financial,statements. Such information includes the Budgetary Comparison Schedule for the (jeneral Fund.

NORTH \yEBSTER PARISH INDUSTRIAL DISTRICT Statement of Revenaes, Expenditures, and Changes in Fnnd Balances -Budget and Aetna]

General Fund For the Year Ended June 30,2009

Schedule 1

Revenues , Taxes r ad valorem Rental ittcpme . ;Oil & gas royalty Interest ^ MisceHaheous

: Total revenues

Expenditures General (joveinmcnt Pack mainteriaace Coital outlay ^

V Total.eicpeDditares ' :

Excess (deficiency) of revenues over . - (ander) espcaditDr^ , . ,

Other Fiuancing Sources (Uses) Lease-princ^alpajanents Pass tiffou^ Tepayments to LED Operating transfers out

. Total other finandng somces (uses)

Budgeted Amotmts OrigiDal

$ 305,000 . 390,000 ,;

13,000 . 25,000 :

1,000

• .734,000.',

172,600 •; 9,600 450,000 -

632,200

Final

$ 305,000 ..390,000

.13,000 25,000

1,000

734,000

177,591 . 9,600

. 450,000 ,

:--• 637,191 \

:Actual, . .(CASH).

Basis

$ .332,322.' 302,520-

. . . . ; 15,054 : : 125,930 .

• - . - . , _ -

•'- 775,826

. .162,369 6,571

27,887

: - 196,827 :

Variance with -Final Budget ,

Positive.

(Native)

$ •.' .27,322', • . .(87,480)

-. •,•"2,054 .. . - 100,930

(1,000)

41,826

:'15.222. 3,029,

422,113

• 440,364

Excess (deficiency) of rcvemies and otiier sopxces ; oyer (unda) espenditores anid cither uses ,

101,800

(150,000) (40,000)

96,809

(150,000) (40,000)

578,99?

.85,793 (150,000) (72,706)

(190,000) , (190,000) ; - (136,913)

482,190:

85,793

(32,706)

53,087

(88,200) (93,191) 442,086 .535,277

Fund balance at beginning of year

Fund balance at end of year

2,137,790 2,137,790 2,148,088 10,298

$ 2,049,590 $ 2.044,599 $ 2,590,174 $ 545,575

The accon5)anying notes arc an integral part of fliis statement

37


Notes to Budgetary Comparison Schedules June 30,2009

Note 1 -Budget basis

The budget for the general fimd is adopted, on a cash basis. ,

38

OTHER SUPPLEMENTAL SCHEDULES

Other supplenientary infomiation includes financial statements and schedides not required by the GASB, nor a part of the basic financial statements, but are presented for purposes of additional analysis. . ^

Such statements, include: : . . = . : : ;./^ .. • Schedule ofCompensation Paid Board Members • Schedule of (jeneral Fund Expenditures

Schedule 2


Schedule ofCompensation Paid Board Members ..June 30,2009

The Board of Commissioners of the North Webster Parish Industrial District meets each month, TTiey dp not receive any compensation. The following were members pf the Board asof June 30, 2009: -

Chaimoan Johnnie K. Hill Vice-Chadrinan David Smith '.'•. Secretary Jeff Slack Member. . Jory Hayes >

Member Menibw Member

RayMiUs LamarSmith

^ Johrmy Herrington


40

NORTH WEBSTER PARISH INDUSTRmLDISTEUCT Schedule of General Fund Expenditures

Year Ended June 30,2009

With Comparative Amounts for the Year Ended June 30, 2008

Schedules

2009 2008 General and administrative: ••[_

Salaries . , Taxes , Insurance \ Legial and accounting

•;pfiace.;;;:?v':..;"S' .:^.^.-:^ Tax assessor fees . Trayef .

-.Bankfees .Promotional .

Telephone Utilities \

•Dues -•'•/-.

"Printing -

i Miscellaneous -,

total general and administi^tive

$ 74,038. .5,676.

.28,492 19,262;. .

: ; .3,899 . .11 ,872, :

/•V 2,227 ': - . 3 '

, 1 ,645 , : 4,261 3,916

, 5 , 1 1 0 . . : 2,160.

: - . • - . . • • ' - ' - - ' ' • - * , .

162,561, - :

$ 74,038.

-- ' , : . .5,688 • , ^ 2 8 , 0 0 5

,. ,40,640 . • • 5,373 ;

.11,134

: : •6,847;/

. . 2 , 3 0 6 : 4,169;

:: 3,954: ,, : 4,675.;

V. 3,362;; : : :12,706\;

: •^202,897 ,

Park expenditures: - Maintenance 6,571 9,375

Capital outlay: . : -Miscellaneous, proj ects 29;287 130,488

Total general fund expenditures: $.-^198;419 $•: 342,760

The accompanying notes are an integral part pf this statement.

41

OTHER REPORTS

JAMIESON, WISE & MARTIN A PROFESSIONAL ACCOUrJTING CORPORATION

601 MAIN STREET RO. BOX 897 MINDEN. LOUISIANA 71058-0897

MICHAEL W. WISE. C P A (318) 377-3171 WM. PEAHCE JAMIESON, C.P.A.(1991) CARLOS E. MABTIN. C P A FAX (318) 377-3177 „ ^ „ , ^ ^ , KRISTINE K COLE C P A MEMBERS

AMERICAN INSTfTUTE OF JENNIFER C. SMfTH. CPJ\. CERTIFIED PUBLIC ACCOUISTTAI S KRISTIE K. MARTIN. C P A SOCIETY OF LOUISIANA

CERTIFIED PUBLIC ACCOUNTANTS

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDII

OF FINANCLAL STATEMENTS PERFORMED IN ACCORDANCE WITH CJOVERNMENT AUDITING STANDARDS


We have audited the accompanying financial statements of the. govemmental. activities, the business-type activities, and each major fimd of North Webster Parish Industrial District, as of and for tiie year ended June 30, 2009, which coUectively comprise the district's basic financial stateraaits and have issued our rq)ort thereon dated December 21, 2009. We conducted our audit in accordance witii auditing standards generally accepted in tiie,United_States of America and tiie standards ^jpUcable.tp financial audits contained in Govemment Auditing Staridaoxls, issued by fteCorr^troUer (jOTeral of the Uruted States.

Intemal Control Over Financial Reporting . . .

In planning and performing our audit, we considered North Webster Parish Industrial District's intemal control over financial reporting as a basis fpr designing our auditing procedures for the purpose of expressiiig pur opinions on the financial statements, but not for the jpurpose of expressmg an opinion on the. effectiveiiess ofthe District's internal cpntix)! over financial reporting. ^Accordingly, we do not express an opinion on the effectiveness of the District's internal control over financial rq>orting. ,

A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, pr combination of control deficiencies, that adversely affects the District's abiUty to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such tiiat there is more than a remote hkelihood that a misstatement ofthe District's financial statements that is more than inconsequential wiU not be preveated or detected by ttie District's intemal control.

43

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

O u r consideration of intemal control over financial reporting was for.tiie.hniited'purpose described in the first paragraph of thissection and would not necessarily identify all deficiencies in.internal control that might be significant deficiencies or material,weaknesses. We did not

. identify,any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defmed above. .

Compliance and Other Matters .

As part of obtaining reasonable assurance about whetho" North Webster .Parish Industrial District's ifinancial staternents are. free of material misstatement, Nve performed tests of its comphance .with certain provisions of laws, rejgulations, contracts, and grant agreements, nonconi^Hance with which could.have a direct and material efifect on the,determination of financial statements amounts. . However,, providing an opuiion on COTrq)hance with those provisions was not an objective of our audit and accordingly, wejdo not express such an ppioion. - The results of our tests, disclosed no iristances of noncornpliance or.othCT matters that,

• • is required to be reported urider Govenunent Atiditirig Standards. V

.•: We not^ certain matters :that we reportai to management of North \Yebster Parish Industrial , District, in a separate letter dated December 21,2009.

. This report is hitended solely for the infomiation of the District's Board of Commissioners, : -grant .a.warding agencies and the.Legislative. Auditor of the State of Lbiuaanaand is not:

intended to be..and.should npt be.iised by, anybne other.than these:specified parties:; Under: Louisiana Revised Statute 24:513, this ;repH0rt is distributed by the Legislative Auditor as a,

, pubhc document

QAnrvuoA^ , U) CAA \ yv\ tuj tu, :

Minden, Louisiana December 21,2009

44

NORTH WEBSTER PARISH INDUSTRIAL DISTRICT :

Current Year Findings, Recommendations, and Corrective Action Plan , -'• , For tiie Year Ended June 30,2009 ,

Section I-Internal Control and Comptiance Material to the Financial Statem^

The results of our auditing prpcedures of the basic financial statements as of and for the year ended June 30, 2009, of the North Webster Parish Industrial District, disclosed no items that are required to be reported in accordance with GAGAS.

Sectj|on n- In terna l Control and CompUahce Material to F^^^

The results of our auditing prpcedures ofthe basic financial statem^ts as of and for the; year ended June. 30,2009, ofthe North ^yebst©^ Parish Industrial District, disclosed rib items that are required to be rq)brted in accordancey^th OMiB Circular A-l 3

Section ni-JManagement Letter

2009-1 Deposits in excess of adeqgate security - : ^ > ^ ;v ;, ^ 1. ; :-

Fiiiding: According to LS ARS. 39:1225, adequate securify is tp.be pledged by the District. ; for.depbsits in excess of tiie federal depository iosurance. As of June 30,2009,.t^^^ had apprpxim^ely $ 136,344 in deposits with a local baiik, which were not adequately :secured.'""• ; ' • - ' '

Managemient's Corrective Action Plan: ^ \, The shortfall injpledged securities to coyer 100% of NWPID deposits in local banks.has been corrected. Tliere was n^ a,short period of time due to clerical error. The error, occmred at the regipnal clearing bank in Dallas, TX that a local bank uses as a broker to hold pledgibd securities covering NWPID deposits. When one of the pledged securities held by the broker bank came due it was : ; released as a pledged security and retumed in error, which should not have happened as long as it was being held ais a pledged security. The broker bank regrets the clerical error and , safeguards have been put in place at the broker bank tp assure the situation does npt reoccur.

45

http://tp.be


Status of Prior Audit Findings For tiie Year Ended June 30,2009

Section I - Intemal Control and Compliance Material to the Financial Statements •

The results pf our auditing procedures ofthe basic financial statements asof and for the year ended June 30,2008, of the North Webster Parish Industrial District, disclosed no items that are required tp be reported in accordance with GAGAS.

Section II ~ Intemal Control iand Compliance Material to Federal Awards

The results of pur auditing procedures pf the basic financial statements as of and for the year ended Jime 30,2008, ofthe North. Webster Parish Industrial District, disclosed no items that are reqmred to be reported in accordance with OMB Curcular, A-133.; , . ,

Section n i - Management Letter - None

46

MICHAELW.WISE, C P A CARLOS E. MARTIN, C P A KRISTINE H. COLE CPA.

JENNIFgRC SMITH, C P A KRtSTlE K. MARTIN, C P A

JAMIESON, WISE & MARTIN A PBOFESSIONAL ACCOUNTING CORPORATION

601 MAIN STBEET P.O. BOX 897 MINDEN, LOUISIANA 71058-0897

(318)377-3171 FAX (318) 377-3177

WM. PEARCE JAMIESON. C.PA(1991)

MEKBERS

AMERICAN INSTmJTE OF CERTIRED PUBLIC ACCOUNTANTS

SOCIETY OF LOUISIANA CEFrnRED PUBLIC ACCOUmANTS

MANAGEMENT LETTER


We have audited the financial statements of the North Webster Parish Industrial District, as of and for the year ended June 30, 2009, and have issued our report thereon dated December 21,2009.

In connection with our audit, we made certain observations relative to the records maintained, the accounting procedures in effect, and the overall administration of the financial affairs of the District. As a supplement to the reports, we submit for your consideration pertaining to the following observations, which did not meet the criteria of being material basic financial statements. ,

Compliance items considered non-'material to basic financial statements.

2009-1 Deposits in excess of adequate security According to LSA RS 39:1225, adequate security is to be pledged by the District for deposits m excess of the federal depository msurance. As of June 30, 2009, the District had ^proximately.$136,344 in deposits with a local bank, which were not adequately secured.

The District's management has addressed prior audit findings unless included in the above comments. Should you have any questions concerning the contents of this letter or if we can be of any additional service, please contact us at your convenience.

Very truly yours,

Jamieson, Wise & Martin December 21,2009

47

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