town of mamou...town of mamou, louisiana statement of net assets december 31,2005 governmental...
TRANSCRIPT
ocr»
r*
CP
TOWN OF MAMO U, LOUISIANA
Financial Report
Year Ended December 31,2005
Under provisions of state law, this report is a publicdocument. A copy of the report has been submitted tothe entity and other appropriate public officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.
Release Date
TABLE OF CONTENTS
Page
Independent Auditors'Report 1-2
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS)Statement of net assets 5Statement of activities 6
FUND FINANCIAL STATEMENTS (FFS)Balance sheet - governmental funds 9Reconciliation of the governmental funds balance sheet
to the statement of net assets 10Statement of revenues, expenditures, and changes in fund balances-
governmental funds 11Reconciliation of the statement of revenues, expenditures, and
changes in fund balances of governmental funds to the statement of activities 12Statement of net assets - proprietary funds 13Statement of revenues, expenses, and changes in fund net
assets - proprietary funds 14Statement of cash flows - proprietary funds 15-16
Notes to basic financial statements 17-40
REQUIRED SUPPLEMENTARY INFORMATIONBudgetary comparison schedules:
General Fund 42Sales Tax Special Revenue Fund 43
OTHER SUPPLEMENTARY INFORMATION
OTHER FINANCIAL INFORMATIONStatement of net assets-compared to prior year totals 46General and Special Revenue Funds - comparative balance sheet 47General and Special Revenue Funds - Comparative revenues, expenses, and changes
in fund balances 48Major Governmental Funds -
General Fund - budgetary comparison schedule - revenues 49General Fund - budgetary comparison schedule- expenditures 50-52Sales Tax Fund - budgetary comparison schedule 53
Schedule of number of utility customers (unaudited) 54Schedule of insurance in force (unaudited) 55Combined schedule of interest-bearing deposits - all funds 56-57Comparative statement of net assets - proprietary fund 58Comparative statement of revenues, expenses, and changes in fund net assets 59Departmental analysis of revenues and expenses - utility fund 60
COMPLIANCE AND INTERNAL CONTROL
Report on Compliance and on Internal Controlover Financial Reporting Based on an Audit ofFinancial Statements Performed in Accordancewith Government Auditing Standards 62-63
Summary schedule of current and prior year audit findings and corrective action plan 64-66
KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTS
C. Burton Kolder, CPA*Russell F. Champagne, CPA*Victor R. Slaven, CPA"P. Troy Courvilto, CPA'Gerald A. Thibodeaux, Jr., CPA*Robert S. Carter, CPA*Arthur R. Mixon, CPA
OFFICES
Tynes E. Mixon, Jr., CPAAlien J. LaBry, CPAAlbert R. Leger, CPA.PFS.CSA*Harry J. Clostio, CPAPenny Angelle Scruggins, CPAChristine L Cousin, CPAMary T. Thibodeaux, CPAJames R. Roy, CPARobert J. Mete, CPAKelly M. Ooucet, CPACheryl L. Bartley, CPA, CVAMandy B. Self. CPAChris E. Bilski, CPA
INDEPENDENT AUDITORS' REPORT
163 South Beadle Rd. 113 East Bridge SiLafayette, LA 70508 Breaux Bridge, LA 70517Phone (337) 232-4141 Phone (337) 332-4020Fax (337) 232-8660 Fax (337) 332-2867
133 East Waddil 1234 David DR. Ste 203Marksvilte, LA 71351 Morgan City, LA 70380Phone (318) 253-9252 Phone (985) 384-2020Fax (318) 253-8681 Fax (985) 384-3020
408 West Cotton Street 332 West Sixth AvenueVille Platte, LA 70586 Oberiin, LA 70655Phone (337) 363-2792 Phone (337) 639-4737Fax (337) 363-3049 Fax (337) 639-4568
200 South Main StreetAbbeville, LA 70510Phone (337) 893-7944Fax (337) 893-7946
450 East Main StreetNew Iberia, LA 70560
Phone (337) 367-9204Fax (337) 367-9208
Retired:Conrad O. Chapman, CPA* 2006
WEBSFTE;WWW. KCSRCPAS. COM
* A Professional Accounting Coiporation
The Honorable Wilda Chamberlain, Mayorand Members of the Board of Aldermen
Town of Mamou, Louisiana
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Mamou,Louisiana, as of and for the year ended December 31, 2005, which collectively comprise the basic financialstatements of the Town's primary government as listed in the table of contents. These financial statementsare the responsibility of the Town's management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United Statesof America and 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 theaudit to obtain reasonable assurance about whether the financial statements are free of material misstatement.An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basicfinancial statements. An audit also includes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.
The financial statements referred to above include only the primary government of the Town ofMamou, Louisiana, which consists of all funds, organizations, institutions, agencies, departments, and officesthat comprise the Town's legal entity. The financial statements do not include financial data for the Town'slegally separate component units, which accounting principles generally accepted in the United States ofAmerica require to be reported with the financial data of the Town's primary government. As a result, theprimary government financial statements do not purport to, and do not, present fairly the financial position ofthe reporting entity of the Town of Mamou, Louisiana as of December 31, 2005, and the changes in itsfinancial position and its cash flows, where applicable, for the year then ended in conformity with accountingprinciples generally accepted in the United States of America.
Member of:AMERICAN INSTITUTE OFCERTIFIED PUBLIC ACCOUNTANTS
Member of:SOCIETY OF LOUISIANA
CERTIFIED PUBLIC ACCOUNTANTS
In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, the business-type activities, each major fund, andthe aggregate remaining fund information for the primary government of the Town of Mamou, Louisiana, asof December 31, 2005, and the respective changes in financial position and cash flows, where applicable, forthe year then ended in conformity with accounting principles generally accepted in the United States ofAmerica.
In accordance with Government Auditing Standards, we have also issued a report dated June 2, 2006,on our consideration of the Town of Mamou's internal control over financial reporting and our tests of itscompliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part ofan audit performed in accordance with Government Auditing Standards and should be read in conjunctionwith this report in considering the results of our audit.
The required supplementary information on pages 42 through 43 are not a required part of the basicfinancial statements but are supplementary information required by the Governmental Accounting StandardsBoard. We have applied certain limited procedures, which consisted principally of inquiries of managementregarding the methods of measurement and presentation of the supplementary information. However, we didnot audit the information and express no opinion on it.
The Town of Mamou has not presented management's discussion and analysis that the GovernmentalAccounting Standards Board has determined is necessary to supplement, although not required to be part of,the basic financial statements.
Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the Town of Mamou, Louisiana's basic financial statements. The other supplementaryinformation on pages 44 through 66 is presented for purposes of additional analysis and is not a required partof the basic financial statements. Such information, except for that portion marked "unaudited" on which weexpress no opinion, has been subjected to the auditing procedures applied in the audit of the basic financialstatements and, in our opinion, is fairly stated in all material respects in relation to the basic financialstatements taken as a whole.
Kolder, Champagne, Slaven & Company, LLCCertified Public Accountants
Ville Platte, LouisianaJune 2,2006
GOVERNMENT-WIDEFINANCIAL STATEMENTS (GWFS)
TOWN OF MAMOU, LOUISIANA
Statement of Net AssetsDecember 31,2005
Governmental Business-TypeActivities Activities Total
ASSETSCurrent assets:
Cash and interest-bearing depositsReceivables, netDue from other governmental unitsInventoryPrepaid items
Total current assets
Noncurrent assets:Restricted assets:
Cash and interest-bearing depositsCapital assets, net
Total noncurrent assets
Total assets
LIABILITIESCurrent liabilities:
Accounts and other payablesClaims payableInternal balancesCapital lease payableBonds payableAccrued interest
Total current liabilities
Noncurrent liabilities:Customers deposits payableContingent liabilitiesCapital lease payableBonds payable
Total noncurrent liabilities
Total liabilities
NET ASSETSInvested in capital assets, net of related debtRestricted for debt serviceUnrestricted
Total net assets
$1,641,602175,760206,690
-20,385
2,044,437
975,0003,008,991
3,983,991
6,028,428
183,378169,089(39,973)12,01589,0001,335
414,844
350,00047,375
-
397,375
812,219
2,958,36644,364
2,213,479
$5,216,209
$ 40,014399,166
-44,9567,162
491,298
423,2052,680,423
3,103,628
3,594,926
215,259-
39,973-
50,0582,446
307,736
224,034--
91,753
315,787
623,523
2,588,670-
382,733$2,971,403
$ 1,681,616574,926206,69044,95627,547
2,535,735
1,398,2055,689,414
7,087,619
9,623,354
398,637169,089
-12,015139,0583,781
722,580
224,034350,00047,37591,753
713,162
1,435,742
5,547,03644,364
2,596,212
$ 8,187,612
The accompanying notes are an integral part of the basic financial statements.
5
1aW
isiu=§£*r2
in
-<I O ^
§ 1 S 15 If fc^J -as
TO
WN
OF
MA
MO
U, 1
Stat
emen
t of
Ad
or th
e Y
ear E
nded
Dea
tLH
1£
Is<3 *T -34J « ' C
|||
~ "g <£ &-S -,
CA Su ea w)M B ds s .s6 § '§
^ --r4o <.O
•0 S
? 515. +3 JQ
u I'iu
ewo §1 s"32 a xiIII^3
in
•a -8
Fees
, Fi
nes,
ai
ses
Cha
rges
for
Sen
1u
ON vi O ^ v> v> 00r— vi o so — vi «ON O ro — •* ON Osso v> Os CN ^J- SO r-
t— -3- co CN N— '
6ft
1 i i i i i 1
ON VI O 'tt V) Vi 00r- vi o so —< vi — iOs O CO -« ^ ON ONSO V) ON CN Tf S£, £•_
r*- Tf rO CN ^-^
•ft
i i i i i i i
6ft
OO O00 OOOB Om
V) ~(S
Tl- so ONr^- Os oo
CN tN <N
ro *~" oo co vi vi oo
oo oo so cs
•»
oor^fN
°1
,
'
S00
CSCO
1
oooooor-"<N
C-"
CO
oor*
cs"
so co ror- ON o"3- oo sot*- ^" VI
— ^
t^" ON O• - OO so(*••* ^*" vT« 2 o
1 1 1
ON so -<a-co so so
oo" o" ro"O CN 00^ Tj CO
co ro P*so r- soCN CS ^t
O_ CN CO
-"
vOr^*o1—1
sosOP-;i£>ON
sOr-rf
COooso
~
oCNoso"CO
~5fl
so
so"
NO00r-riro
iftl
1
6ft
OOoooor-"soCN
00CNCOo"COCN"
soCO(S_
CO
a
s S ^ ^ S ^ r ? o o o ^ v l ^ c N S S g r o J^ V I O O V I N O C N r ^ o o f N C N r ^ - c o o p * iro" co so" Vj" cT so" r-" so" so" O* so" t- vT so" (.so O — so ro r- v i r - ^ - O ^ - C N V j i
•vS
**"% «•so V) (.co r» rCN ON tr"~ CN "<
CN J
v i t ^ - v i o o o o o T t s o c N o o v i o o o o7~ v> c^ V J O O V J S O C N r ^ s o c N c N t ^ c o o r - o s ^ro rO so V> O so F- O* *O O NO r-- vj so CN *>\O O *— ' so ro t~~ ^ t~~ "^ O ""^ CN Vj Vi •
s_x
1 aS aS I 'S
03 «
" P C C•S 2 o« - Bb •«- s E o ^3
1 « i i *• s•S S3 B 3 ta Veg u a> 2 y X« a* K > 3 *s &
llli-1 1 I3 T3 5. S * M S3f lp t 1 1 ^S f & n | ! ^^ ^ , § ^ ^ 1 ^ s j
<S <2 -a -o -a ^ •§ S '•s -s -S -8 -S § I 1 i 5 -•3 -c G C G OT w SB « "3 s
" - "5 s~ rf -§ s s i § -Ss j
1 1 S S 1 « 1 ^ 1 •« 8 1 1 1
£ ' § " ^ M ( f l w i " S ™ M " e 3 * 3 w " " ^ ~
"3 l < 3 S 3 w c l i l l 'S ' l §"§««o £ £
*> ro Os*1 — ON•^ r- oo3s" co" ro"^ so CNy\ CN os^— t*
?7l ro1 soo r- r-n" oo" cT* -<t CNN '-^ 0""" ro"
N so CO-- OO CN
n CN coa- — oN co ONBN" r"
a3s3323ft
Cha
nge
in n
et a
sset
s
;ts -
Janu
ary
1,20
05
X31
CNSOr-"oo
oo"*ft
COo,_J"r-ONCN"
OsoCNso"
*H6ft
its -
Dec
embe
r 3
1, 2
005
won3
1
SO
£1isi
u
2*
^DO
t3
3
i•oaI8
§•5
men
tal a
ctiv
ities
eu000
1H
enU
-typ
e ac
tiviti
tnfSS
c a•a ,s2 Offl
1 1-> u!> en
ss-ty
pe a
ctiv
ities
<i>
Tot
al b
usin
I
•SoI
The General Fund is used to account for resources traditionally associated with governments which are notrequired to be accounted for in another fund.
Special Revenue Fund
Special revenue funds are used to account for specific revenues that are legally restricted to expenditures forparticular purposes.
Sales Tas FundTo account for the receipt and use of proceeds of the Town's two 1 % sales and use taxes. These taxes arededicated and used for the purpose of inducing and attracting commerce, industry and tourism in the Town,including die acquisition and improvement of land and buildings and for constructing, acquiring, improvingand/or extending any work of capital improvement for the Town; and any lawful corporate purpose of theTown.
Debt Service Funds
Debt service funds are used to accumulate resources to be used to make debt service principal and interestpayments on general obligation long-term debt.
P.I. Sales Tax Refunding Bonds Debt Service FundTo accumulate monies for payment of the $693,000 Public Improvement Sales Tax Refunding Bonds, Series1995. Debt service is financed by the collection of sales taxes.
Enterprise Fund
Utility Fund -To account for the provision of gas, water, and sewerage services to residents of the Town. All activitiesnecessary to provide such services are accounted for in this fund, including, but not limited to,administration, operations, maintenance, financing and related debt service, and billing and collection.
TOWN OF MAMOU, LOUISIANA
Balance SheetGovernmental Funds
December 31,2005
Sales Tax DebtSpecial Service
General Revenue Fund TotalASSETS
Cash $ 142,532 $ - $ $ 142,532Interest-bearing deposits 915,507 407,107 146,714 1,469,328Receivables:
Taxes 166,636 - - 166,636Accrued interest 6,995 - - 6,995Due from other governmental units 206,690 - - 206,690Other 2,129 - - 2,129
Due from other funds - 58,179 - 58,179Prepaid expenses 20,385 - - 20,385Restricted cash:
Interest-bearing deposits 975,000 - - 975,000
Total assets $2,435,874 $ 465,286 $ 146,714 $3,047,874
LIABILITIES AND FUND BALANCES
Liabilities:Accounts and other payables $ 134,903 $ 18,715 $ - $ 153,618Compensated absences payable 29,742 - - 29,742Due to other funds 90,605 - - 90,605Other 18 - - 18
Total liabilities 255,268 18,715 - 273,983
Fund balances -Reserved for debt service - - 146,714 146,714Unreserved, undesignated 2,180,606 446,571 - 2,627',177
Total fund balances 2,180,606 446,571 146,714 2,773,891
Total liabilities and fund balances $2,435,874 $ 465,286 $ 146,714 $3,047,874
The accompanying notes are an integral part of the basic financial statements.
9
TOWN OF MAMOU, LOUISIANA
Reconciliation of the Governmental Funds Balance Sheetto the Statement of Net Assets
December 31,2005
Total fund balances for governmental funds at December 31,2005 $ 2,773,891
Total net assets reported for governmental activities in the statement of netassets is different because:
Capital assets used in governmental activities are not financial resourcesand, therefore, are not reported in the funds. Those assets consist of:Land and construction in progress $ 198,000Buildings and improvements, net of $418,508 accumulated depreciation 1,726,052Infrastructure, net of $704,867 accumulated depreciation 799,142Equipment, furniture, and fixtures, net of $319,893 accumulated depreciation 210,452Vehicles, net of $181,088 accumulated depreciation 75,345 3,008,991
Long-term liabilities at December 31, 2005:Capital lease payable (59,390)Bonds payable (89,000)Contingent liability (350,000)Accrued interest payable (1,335) (499,725)
Net assets (deficiency) of the group self-insurance internal service fund (66,948)
Total net assets of governmental activities at December 31,2005 $ 5,216,209
The accompanying notes are an integral part of the basic financial statements.
10
TOWN OF MAMOU, LOUISIANA
Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds
For the Year Ended December 31, 2005
Revenues:TaxesLicenses and permitsIntergovernmentalFines and forfeitsMiscellaneous
Total revenues
Expenditures:Current-
General government:Administrative
Public safety:Police
Highways and streetsCulture and recreationJudicialCentral garage
Capital outlayDebt service -
Principal retirementInterest and fiscal charges
Total expenditures
Excess (deficiency) of revenuesover expenditures
Other financing sources (uses):Proceeds from capital leaseTransfers inTransfers out
Transfers in (out) - component unit
Total other financing sources (uses)
Net changes in fund balances
Fund balances, beginning
Fund balances, ending
General
5 343,290123,274275,672324,696
1,184,156
2,251,088
802,937
(267,951)
65,451680,463
(444,262)
301,652
33,701
2,146,905
Sales TaxSpecial
Revenue
DebtServiceFund
$ 612,963 $
4,456
617,419
1,176
1,176
47,345 1,010
511,713 (88,604)
92,247(519,735)
(519,735) 92,247
(8,022) 3,643
454,593 143,071
Total
$ 956,253123,274275,672324,696
1,189,788
2,869,683
851,292
782,681544,668186,18988,4686,95599,717
6,0611,363
2,519,039
782,681544,668186,18988,4686,955
58,361 - 158,078
81,000 87,0617,770 9,133
105,706 89,780 2,714,525
$2,180,606 $ 446,571 $ 146,714
155,158
65,451772,710
(519,735)(444,262)
(125,836)
29,322
2,744,569
$2,773,891
The accompanying notes are an integral part of the basic financial statements.
11
TOWN OF MAMOU, LOUISIANA
Reconciliation of the Statement of Revenues, Expenditures, andChanges in Fund Balances of Governmental Funds
to the Statement of ActivitiesFor the Year Ended December 31, 2005
Total net changes in fund balances at December 31,2005 perStatement of Revenues, Expenditures and Changes in Fund Balances $ 29,322
The change in net assets reported for governmental activities in thestatement of activities is different because:
Governmental funds report capital outlays as expenditures. However,in the statement of activities, the cost of those assets is allocated overtheir estimated useful lives and reported as depreciation expense.Capital outlay which is considered expenditures on the Statementof Revenues, Expenditures and Changes in Fund Balances $ 158,078Depreciation expense for the year ended December 31, 2005 (145,759) 12,319
Governmental funds report bonded debt repayments as expenditures.However, this expenditure does not appear in the statement of activitiessince the payment is applied against the bond payable balance on the state-ment of net assets 87,061
Proceeds from capital lease (65,451)
Net loss of group self-insurance internal service fund (76,780)
Reduction in estimated loss of workers compensation claims 325,000
Difference between interest on long-term debt on modified accrual basisversus interest on long-term debt on accrual basis 1,215
Total changes in net assets at December 31,2005 per Statement of Activities $ 312,686
The accompanying notes are an integral part of the basic financial statements.
12
TOWN OF MAMOU, LOUISIANA
Proprietary FundsStatement of Net Assets
December 31,2005
Business-type Activities - Governmental Activities -Enterprise Fund Internal Service Fund
ASSETSCurrent assets:
CashInterest-bearing depositsReceivables:
AccountsUnbilled utility receivablesAccrued interest receivableDue from other fimds
Inventory - natural gasPrepaid items
Total current assetsNoncurrent assets:
Restricted assets -Interest-bearing deposits
Capital assets, net of accumulated depreciationTotal noncurrent assets
Total assets
LIABILITIESCurrent liabilities:
Accounts and other payablesCompensated absences payableClaims payableDue to other fundsPayable from restricted assets -
Revenue bondsAccrued interest payable
Total current liabilities
Noncurrent liabilities:Customers' depositsRevenue bonds payable
Total noncurrent liabilities
Total liabilities
NET ASSETSInvested in capital assets, net of related debtRestricted for debt serviceUnrestricted
Total net assets
The accompanying notes are an integral part of the basic financial statements.
$ 1140,003
218,707180,367
92
44,9567,162
491,298
423,2052,680,423
3,103,628
3,594,926
206,9618,298
39,973
50,0582,446
307,736
224,03491,753
315,787
623,523
2,588,670
382,733
$2,971,403
$ 29,742
72,399
102,141
102,141
169,089
169,089
169.089
(66,948)
$ (66,948)
13
TOWN OF MAMOU, LOUISIANA
Proprietary FundsStatement of Revenues, Expenses, and Changes in Fund Net Assets
Year Ended December 31,2005
Operating revenues:Charges for servicesPermits, reconnections and penaltiesMiscellaneous
Total operating revenues
Operating expenses:Gas department expensesWater department expensesSewerage department expensesDepreciation expenseSelf insurance expenses
Total operating expenses
Operating income
Nonoperating revenues (expenses):Interest incomeInterest expense
Total nonoperating revenues (expenses)
Income before contributions and transfers
Capital contributions
Transfers in (out):Transfers inTransfers out
Total transfers in (out)
Change in net assets
Net assets, beginning
Net assets, ending
Business-type Activities-Enterprise Fund
11,858,06045,313
9,396
1,912,769
1,015,818193,321316,112180,218
1,705,469
207,300
7,236(10,534)
(3,298)
204,002
(252,975)
(252,975)
(48,973)
3,020,376
$2,971,403
Governmental Activities -Internal Service Fund
$ 380,792
380,792
457,572
457,572
(76,780)
(76,780)
(76,780)
9,832
$ (66,948)
The accompanying notes are an integral part of this statement.
14
TOWN OF MAMOU, LOUISIANA
Statement of Cash FlowsProprietary Funds
For the Year Ended December 31,2005
Cash flows from operating activities:Receipts from customersPayments to suppliersPayments to employeesOther receipts
Net cash provided (used) by operating activities
Cash flows from noncapital financing activities:Transfers to other funds
Cash flows from capital and related financing activities:Principal paid on revenue bonds payablePrincipal paid on certificates of indebtednessInterest and fiscal charges paid on revenue
bonds and certificatesNet increase (decrease) in customer meter depositsAcquisition of property, plant and equipmentDisposition of property, plant and equipment
Net cash used by capital and related
financing activities
Cash flows from investing activities:Net maturities of interest-bearing deposits with
maturity in excess of ninety daysInterest earned
Net cash provided by investing activities
Net increase (decrease) in cashand cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
Business-type Activities •Enterprise Fund
$1,777,360(1,134,780)
(270,770)9,396
381,206
(252,975)
(43,400)
(11,283)4,815
(65,852)561
(115,159)
(3,957)7,335
3,378
16,450
247,580
$ 264,030
Governmental Activities -Internal Service Fund
$ 361,469(335,862)
25,607
25,607
4,135
$ 29,742
(continued)
15
TOWN OF MAMOU, LOUISIANA
Statement of Cash FlowsProprietary Funds (continued)
For the Year Ended December 31,2005
Reconciliation of operating income to net cash provided(used) by operating activities:
Operating income (loss)Adjustments to reconcile operating income to net cash
provided (used) by operating activities:DepreciationChanges in current assets and liabilities:
Increase in accounts receivable(Increase) decrease in provision for
uncollectible accounts(Increase) decrease in unbilled utility receivables(Increase) decrease in inventory(Increase) decrease in prepaid items(Increase) decrease in due from other fundsIncrease (decrease) in due to other fundsIncrease in accounts payableIncrease (decrease) in compensated
absences payableIncrease (decrease) in claims payable
Net cash provided (used) by operating activities
Reconciliation of cash and cash equivalents perstatement of cash flows to the balance sheet:
Cash and cash equivalents, beginning of period -Cash - unrestrictedInterest-bearing deposits - unrestrictedInterest-bearing deposits - restricted
Less: Interest-bearing deposits with maturity
in excess of 90 days
Total cash and cash equivalents
Cash and cash equivalents, end of period -Cash - unrestrictedInterest-bearing deposits - unrestrictedInterest-bearing deposits - restricted
Less: Interest-bearing deposits with maturityin excess of 90 days
Total cash and cash equivalents
Net increase (decrease)
Business-type Activities •Enterprise Fund
$ 207,300
180,218
(66,728)
(2,739)(56,546)(5,098)(1,670)6,771
39,97374,063
5,662
$ 381,206
1129,780
413,021
(195,232)
247,580
1140,003
423,205
(199,189)
264,030
$ 16.450
Governmental Activities -Internal Service Fund
$ (76,780)
(19,323)
121,710
$ 25,607
$ 4,135
4,135
29,742
29,742
$ 25,607
The accompanying notes are an integral part of the basic financial statements.
16
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements
(1) Summary of Significant Accounting Policies
The accompanying financial statements of the Town of Mamou (Town) have been preparedin conformity with generally accepted accounting principles (GAAP) as applied to governmentalunits. GAAP includes all relevant Governmental Accounting Standards Board (GASB)pronouncements. In the government-wide financial statements and the fund financial statements forthe proprietary funds, Financial Accounting Standards Board (FASB) pronouncements andAccounting Principles Board (APB) opinions on or before December 31, 1989, have been appliedunless those pronouncements conflict with or contradict GASB pronouncements, in which case,GASB prevails. The accounting and reporting framework and the more significant accountingpolicies are discussed in subsequent subsections of this note.
A. Financial Reporting Entity
The Town of Mamou was incorporated on January 4, 1911, under theprovisions of the Lawrason Act. The Town operates under the Mayor-Board ofAldermen form of government.
As the municipal governing authority, for reporting purposes, the Town ofMamou is considered a separate financial reporting entity. The financial reportingentity consists of (a) the primary government (municipality), (b) organizations forwhich the primary government is financially accountable, (c) other organizations forwhich the nature and significance of their relationship with the primary governmentare such that exclusion would cause the reporting entity's financial statements to bemisleading or incomplete, and (d) organizations that are closely related to, orfinancially integrated with the primary government.
Governmental Accounting Standards Board (GASB) Statement No. 14 asamended by Statement No. 39 established criteria for determining which componentunits should be considered part of the Town of Mamou for financial reportingpurposes. The basic criterion for including a potential component unit within thereporting entity is financial accountability. The GASB has set forth criteria to beconsidered in determining financial accountability. These criteria include:
1. Appointing a voting majority of an organization's governing body, and
a. The ability of the municipality to impose its will on thatorganization and/or
b. The potential for the organization to provide specific financialbenefits to or impose specific financial burdens on themunicipality.
2. Organizations for which the municipality does not appoint a votingmajority but are fiscally dependent on the municipality.
17
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
3. Organizations for which the reporting entity's financial statements wouldbe misleading if data of the organization is not included because of thenature or significance of the relationship if all of the following conditionsexist:
a. The economic resources received or held by the organization areentirely or almost entirely for the direct benefit of the primarygovernment, its component units, or its constituents.
b. The primary government (or its component units) is entitled to,or has the ability to otherwise access, a majority of the economicresources received or held by the separate organization.
c. The economic resources received or held by an individualorganization that the specific primary government (or itscomponent units) is entitled to, or has the ability to otherwiseaccess, are significant to that primary government.
4. Organizations that are closely related to, or financially integrated with theprimary government.
The following component units are not presented in the accompanyingfinancial statements:
Savoy Cancer Center, Inc.
The Savoy Cancer Center, Inc. (a nonprofit organization), consisting of theSavoy Cancer Center Operations Fund and the Town of Mamou Cancer CenterBuilding Fund was determined to be a component unit but is not presented in theaccompanying financial statements. The Town of Mamou owns the cancer treatmenthealth care facilities located in Mamou, Louisiana, which are operated by SavoyCancer Center, Inc. (the Center). The Center is a nonprofit organization incorporatedon June 29, 1998. The Center was formed for the purpose of operating and managinga facility for treating cancer patients and is exempt from income taxes under Section501(c)(3) of the Internal Revenue Code. The direction, administration andmanagement of the Center is governed by a Board of Directors or Trustees of not lessthan six (6) nor more than ten (10) members. The members serve terms of one tothree years.
On September 16, 1999, an agreement was entered into between the Townand the Center for a fifteen-year (15) term. The Town is the owner of the cancertreatment facility and retains the services of the Center to provide experience, skills,supervision and necessary personnel for the operation and management of thefacility. Various reporting and accountability requirements must be performed andsubmitted to the Town by the Center on a periodic basis. The Center will provide allservices specified in the agreement at no fee to the Town.
18
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
The Town shall, on a monthly basis or intermittently, as determined by theCenter, reimburse the Center for all operating expenses related to the operation andmanagement of the facility. The Town is also required to maintain insurancecoverage on behalf of the facility. This agreement may be terminated "for cause" byeither party at any time during the term by giving written notice to the other. TheTown has the right of termination without cause under specified circumstances in theagreement.
Complete financial statements for the component unit may be obtained at theentity's administrative office (Savoy Cancer Center, Inc., 803 Poinciana, Mamou, LA70554).
Savoy Medical Center & Savoy Care Center Nursing Home
The Savoy Medical Center and the Savoy Care Center Nursing Home weredetermined to be component units but are not presented in the accompanyingfinancial statements. The Town of Mamou owns the equipment and physical plantoperated by Savoy Medical Center and Savoy Care Center Nursing Home. TheTown appoints five of the thirteen members of the governing board of Savoy MedicalCenter. The Town leases the premises, which includes the land, buildings, fixtures,improvements and equipment for the hospital facility to Rapides Healthcare System,LLC d/b/a Savoy Medical Center for $765,000 annually. The Town also leases thepremises, which includes the land, buildings, fixtures, improvements and equipmentfor the nursing home facility to MH3F Healthcare Management, LLC d/b/a SavoyCare Center Nursing Home for $222,300. The lessees agree to pay all taxes, charges,costs and expenses including maintenance, repairs and utilities of the facilities.
Complete financial statements for the component unit may be obtained at theentity's administrative office (Savoy Medical Center, 801 Poinciana, Mamou, LA70554).
These primary government financial statements of the Town of Mamou donot include the financial data of the component units described above. Thesecomponent units' financial data is necessary for reporting in conformity withgenerally accepted accounting principles.
B. Basis of Presentation
Government-Wide Financial Statements (GWFS)
The statement of net assets and statement of activities display informationabout the reporting government as a whole. They include all funds of the reportingentity. The statements distinguish between governmental and business-type activities.Governmental activities generally are financed through taxes, intergovernmentalrevenues, and other nonexchange revenues. Business-type activities are financed inwhole or in part by fees charged to external parties for goods or services.
19
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
The statement of activities presents a comparison between direct expensesand program revenues for the business-type activities of the Town and for eachfunction of the Town's governmental activities. Direct expenses are those that arespecifically associated with a program or function and, therefore, are clearlyidentifiable to a particular function. Program revenues include (a) fees, fines, andcharges paid by the recipients of goods or services offered by the programs, and (b)grants and contributions that are restricted to meeting the operational or capitalrequirements of a particular program. Revenues that are not classified as programrevenues, including all taxes, are presented as general revenues.
Fund Financial Statements
The accounts of the Town are organized and operated on the basis of funds.A fund is an independent fiscal and accounting entity with a separate set of self-balancing accounts. Fund accounting segregates funds according to their intendedpurpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds ismaintained consistent with legal and managerial requirements.
The various funds of the Town are classified into two categories:governmental and proprietary. The emphasis on fund financial statements is on majorgovernmental and enterprise funds, each displayed in a separate column. A fund isconsidered major if it is the primary operating fund of the Town or meets thefollowing criteria:
a. Total assets, liabilities, revenues, or expenditures/expenses of thatindividual governmental or enterprise fund are at least 10 percent ofthe corresponding total for all funds of that category or type; and
b. Total assets, liabilities, revenues, or expenditures/expenses of theindividual governmental or enterprise fund are at least 5 percent ofthe corresponding total for all governmental and enterprise fundscombined.
The major funds of the Town are described below:
Governmental Funds -
The General Fund is the general operating fund of the Town. It is used toaccount for all financial resources except those required to be accounted for inanother fund.
The Sales Tax Special Revenue Fund is used to account for the proceeds oftwo separate one percent sales and use taxes that are legally restricted to expendituresfor specific purposes.
20
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
The P.I. Sales Tax Refunding Bonds Debt Service Fund accounts for theaccumulation of monies for payment of the $693,000 Public Improvement Sales TaxRefunding Bonds, Series 1995.
Additionally, the Town reports the following fund types:
Proprietary Funds -
Proprietary funds are used to account for ongoing organizations and activitiesthat are similar to those often found in the private sector. The measurement focus isbased upon the determination of net income, financial position, and cash flows. Thefollowing are the Town's proprietary fund types:
Enterprise funds
Enterprise funds are used to account for operations (a) that are financed andoperated in a manner similar to private business enterprises - where the intent of thegoverning body is that the costs (expenses, including depreciation) of providinggoods or services to the general public on a continuing basis be financed or recoveredprimarily through user charges; or (b) where the governing body has decided thatperiodic determination of revenues earned, expenses incurred, and/or net income isappropriate for capital maintenance, public policy, management control,accountability, or other purposes. The Town applies all applicable FASBpronouncements issued after November 30, 1989 in accounting and reporting for itsenterprise fund. The Town's enterprise fund is the Utility Fund.
Internal service funds
Internal service funds are used to account for the financing of goods orservices provided by one department or agency or other departments or agencies ofthe governmental unit, or to other governmental units, on a cost-reimbursement basis.The Town's internal service is the Group Health Self Insurance Fund.
C. Measurement Focus/Basis of Accounting
Measurement focus is a term used to describe "which" transactions arerecorded within the various financial statements. Basis of accounting refers to"when" transactions are recorded regardless of the measurement focus applied.
Measurement Focus
On the government-wide statement of net assets and the statement ofactivities, both governmental and business-type activities are presented using theeconomic resources measurement focus as defined in item b. below.
21
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
In the fund financial statements, the "current financial resources"measurement focus or the "economic resources" measurement focus is used asappropriate:
a. All governmental funds utilize a "current financial resources"measurement focus. Only current financial assets and liabilities aregenerally included on their balance sheets. Their operatingstatements present sources and uses of available spendable financialresources during a given period. These funds use fund balance astheir measure of available spendable financial resources at the end ofthe period.
b. The proprietary fund utilizes an "economic resources" measurementfocus. The accounting objectives of this measurement focus are thedetermination of operating income, changes in net assets (or costrecovery), financial position, and cash flows. All assets and liabilities(whether current or noncurrent) associated with their activities arereported. Proprietary fund equity is classified as net assets.
Basis of Accounting
In the government-wide statement of net assets and statement of activities,both governmental and business-type activities are presented using the accrual basisof accounting. Under the accrual basis of accounting, revenues are recognized whenearned and expenses are recorded when the liability is incurred or economic assetused. Revenues, expenses, gains, losses, assets, and liabilities resulting fromexchange and exchange-like transactions are recognized when the exchange takesplace.
Governmental fund financial statements are reported using the currentfinancial resources measurement focus and the modified accrual basis of accounting.Revenues are recognized as soon as they are both measurable and available.Revenues are considered to be available when they are collectible within the currentperiod or soon enough thereafter to pay liabilities of the current period. For thispurpose, the government considers revenues to be available if they are collectedwithin 60 days of the end of the current fiscal period. Expenditures (including capitaloutlay) generally are recorded when a liability is incurred, as under accrualaccounting. However, debt service expenditures are recorded only when payment isdue.
The proprietary funds utilize the accrual basis of accounting. Under theaccrual basis of accounting, revenues are recognized when earned and expenses arerecorded when the liability is incurred or economic asset used.
22
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
D. Assets, Liabilities and Equity
Cash, interest-bearing deposits, and investments
For purposes of the statement of net assets, cash and interest-bearing depositsinclude all demand accounts, savings accounts, and certificates of deposits of theTown.
Under state law, the Town may invest in United States bonds, treasury notes,or certificates. Investments are stated at amortized cost.
For the purpose of the proprietary funds statement of cash flows, "cash andcash equivalents" include all demand and savings accounts, and certificates ofdeposit or short-term investments with an original maturity of three months or less.
Receivables
In the government-wide statements, receivables consist of all revenuesearned at year-end and not yet received. Major receivable balances for thegovernmental activities include ad valorem and sales and use taxes. Business-typeactivities report customer's utility service receivables as their major receivables.Uncollectible ad valorem taxes or utility service receivables are recognized as baddebts at the time information becomes available which would indicate theuncollectibility of the particular receivable. At December 31, 2005 and 2004, anallowance for ad valorem taxes was considered unnecessary due to immateriality.The allowance for customers' utility receivables was $145,745 and $143,006 atDecember 31, 2005 and 2004, respectively. Unbilled utility service receivablesresulting from utility services rendered between the date of meter reading and billingand the end of the month, are recorded at year-end.
Interfund receivables and payables
During the course of operations, numerous transactions occur betweenindividual funds that may result in amounts owed between funds. Those related togoods and services type transactions are classified as "due to and from other funds."Short-term interfund loans are reported as "interfund receivables and payables."
Long-term interfund loans (noncurrent portion) are reported as "advancesfrom and to other funds." Interfund receivables and payables between funds withingovernmental activities are eliminated in the statement of net assets.
Inventory
Inventory of the Utility Fund consists of natural gas being held as storage onbehalf of the Town by the Louisiana Municipal Gas Authority and is valued at a priceper MCF determined by the Louisiana Municipal Gas Authority. Supplies and partson hand are considered immaterial and have been accounted for using the purchasemethod.
23
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
Prepaid Items
Payments made to vendors for services that will benefit periods beyondDecember 31,2005, are recorded as prepaid items.
Restricted Assets
Restricted assets include cash and interest-bearing deposits of the generalfund and proprietary fund that are legally restricted as to their use. The restrictedassets in the utility fund are related to the utility meter deposits and revenue bondaccounts. The restricted assets in the general fund are related to contingent liabilitiesarising out of workman's compensation and malpractice claims in existence at thetime the Town purchased the hospital and fund required to be on hand for repaymentof the Cancer Treatment Center bonds.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructureassets, are reported in the applicable governmental or business-type activitiescolumns in the government-wide or financial statements. Capital assets arecapitalized at historical cost or estimated cost if historical is not available. Donatedassets are recorded as capital assets at their estimated fair market value at the date ofdonation. The Town maintains a threshold level of $1,000 or more for capitalizingcapital assets.
The costs of normal maintenance and repairs that do not add to the value ofthe asset or materially extend assets lives are not capitalized. Prior to July 1, 2001,governmental funds' infrastructure assets were not capitalized. These assets havebeen valued at estimated historical cost.
Depreciation of all exhaustible capital assets is recorded as an allocatedexpense in the statement of activities, with accumulated depreciation reflected in thestatement of net assets. Depreciation is provided over the assets' estimated usefullives using the straight-line method of depreciation. The range of estimated usefullives by type of asset is as follows:
Buildings 40 yearsEquipment 5 yearsUtility system and improvements 20-40 yearsInfrastructure 20 years
In the fund financial statements, capital assets used in governmental fundoperations are accounted for as capital outlay expenditures of the governmental fundupon acquisition. Capital assets used in proprietary fund operations are accounted forthe same as in the government-wide statements.
24
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
Long-term debt
The accounting treatment of long-term debt depends on whether the assetsare used in governmental fund operations or proprietary fund operations and whetherthey are reported in the government-wide or fund financial statements.
All long-term debt to be repaid from governmental and business-typeresources are reported as liabilities in the government-wide statements. The long-term debt consists primarily of the public improvement and revenue bonds payable,utility meter deposits payable, and contingent liabilities arising out of workman'scompensation and malpractice claims in existence at the time the Town purchased thehospital.
Long-term debt for governmental funds is not reported as liabilities in thefund financial statements. The debt proceeds are reported as other financing sourcesand payment of principal and interest reported as expenditures. The accounting forproprietary fund long-term debt is the same in the fund statements as it is in thegovernment-wide statements
Compensated Absences
Sick leave is earned at the rate of one day for each month worked, with alimit of twelve days per year. An employee may not carry over or accumulate morethan forty-eight days of sick leave from one year to another. Sick leave is notpayable at termination of employment. Vacation leave is earned over an anniversaryyear basis at the rate of one day for each month worked, with a limit of twelve daysper year. An employee may not carry over or accumulate vacation leave from oneemployment anniversary date to another.
For fund financial statements, vested or accumulated leave that is expected tobe liquidated with expendable available financial resources is reported as anexpenditure and a current fund liability of the governmental fund that will pay it. Inthe government-wide statements, amounts of vested or accumulated leave that are notexpected to be liquidated with expendable available financial resources are recordedas long-term debt.
Equity Classifications
In the government-wide statements, equity is classified as net assets anddisplayed in three components:
a. Invested in capital assets, net of related debt - Consists of capitalassets including restricted capital assets, net of accumulateddepreciation and reduced by the outstanding balances of any bonds,mortgages, notes, or other borrowings that are attributable to theacquisition, construction, or improvement of those assets.
25
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
b. Restricted net assets - Consists of net assets with constraints placedon the use either by (1) external groups such as creditors, grantors,contributors, or laws or regulations of other governments; or (2) lawthrough constitutional provisions or enabling legislation.
c. Unrestricted net assets - All other net assets that do not meet thedefinition of "restricted" or "invested in capital assets, net of relateddebt."
In the fund statements, governmental fund equity is classified as fundbalance. Fund balance is further classified as reserved and unreserved, withunreserved further split between designated and undesignated. Proprietary fundequity is classified the same as in the government-wide statements.
E. Revenues. Expenditures, and Expenses
Operating Revenues and Expenses
Operating revenues and expenses for proprietary funds are those that resultfrom providing services and producing and delivering goods and/or services. It alsoincludes all revenue and expenses not related to capital and related financing,noncapital financing, or investing activities.
Expenditures/Expenses
In the government-wide financial statements, expenses are classified byfunction for both governmental and business-type activities.
In the fund financial statements, expenditures are classified as follows:
Governmental Funds - By CharacterProprietary Fund - By Operating and Nonoperating
In the fund financial statements, governmental funds report expenditures offinancial resources. Proprietary funds report expenses relating to use of economicresources.
Interfund Transfers
Permanent reallocations of resources between funds of the reporting entityare classified as interfund transfers. For the purposes of the statement of activities,all interfund transfers between individual governmental funds have been eliminated.
26
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
F. Revenue Restrictions
The Town has various restrictions placed over certain revenue sources fromstate or local requirements. The primary restricted revenue sources include:
Revenue Source Legal Restrictions of Use
Sales tax See Note 3Gas, water and sewer revenue Debt service and utility operations
The Town uses unrestricted resources only when restricted resources arefully depleted.
G. Budget and Budgetary Accounting
The Town follows these procedures in establishing the budgetary datareflected in the financial statements:
1. The Town Clerk prepares a proposed operating budget for the fiscal yearand submits it to the Mayor and Board of Aldermen not later than fifteendays prior to the beginning of each fiscal year.
2. A summary of the proposed budget is published and the public notifiedthat the proposed budget is available for public inspection. At the sametime, a public hearing is called.
3. A public hearing is held on the proposed budget at least ten days afterpublication of the call for the hearing.
4. After the holding of the public hearing and completion of all actionnecessary to finalize and implement the budget, the budget is adoptedthrough passage of a resolution prior to the commencement of the fiscalyear for which the budget is being adopted.
5. Budgetary amendments involving the transfer of funds from onedepartment, program or function to another or involving increases inexpenditures resulting from revenues exceeding amounts estimatedrequire the approval of the Board of Aldermen.
6. All budgetary appropriations lapse at the end of each fiscal year.
7. Budgets for all funds are adopted on a basis consistent with generallyaccepted accounting principles (GAAP). Budgeted amounts are asoriginally adopted or as amended by the Board of Aldermen. Suchamendments were not material in relation to the original appropriations.
27
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
H. Capitalization of Interest Expense
It is the policy of the Town of Mamou to capitalize material amounts ofinterest resulting from borrowings in the course of the construction of capital assetsin the Proprietary Fund. At December 31, 2005, there were no borrowings for assetsunder construction and no capitalized interest expense was recorded on the books.
I. Use of Estimates
The preparation of financial statements in conformity with generallyaccepted accounting principles requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure ofcontingent assets and liabilities at the date of the financial statements and the reportedamounts of revenues and expenditures during the reporting period. Actual resultscould differ from those estimates.
(2) Ad Valorem Taxes
Ad valorem taxes attach as an enforceable lien on property as of January 1 of each year.Taxes are levied by the Town in September or October and are actually billed to taxpayers inDecember. Billed taxes become delinquent on January 1 of the following year. The Town bills andcollects its own property taxes. Property tax revenues are recognized when levied to the extent thatthey result in current receivables.
For the year ended December 31, 2005, taxes of 19.23 mills were levied on property withassessed valuations totaling $9,020,930 and were dedicated as follows:
General corporate purposes 7.28 millsStreets and recreation maintenance 11.95 mills
Total 19.23 mills
Total taxes levied were $173,472. Taxes receivable at December 31, 2005 were $121,219.
(3) Sales and Use Tax
A. Proceeds of the 1% sales and use tax levied by the Town of Mamou (2005 collections$306,346) are dedicated for any lawful corporate purposes of the Town.
28
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
B. Proceeds of the 1% sales and use tax levied by the Town of Mamou in 1991 (2005 collections$306,346) are dedicated to the following purposes:
Thirty-five percent (35%) for any lawful corporate purposes of the Town; tenpercent (10%) for inducing and attracting commerce, industry and tourism in theTown, including the acquisition and improvement of land and buildings there for; andfifty-five percent (55%) for constructing, acquiring, improving and /or extending anywork of capital improvement for the Town.
(4) Cash, Interest-Bearing Deposits
Under state law, the Town may deposit funds within a fiscal agent bank organized under thelaws of the State of Louisiana, the laws of any other state in the Union, or the laws of the UnitedStates. The Town may invest in certificates and time deposits of the state banks organized underLouisiana law and national banks having principal offices in Louisiana. At December 31, 2005, theTown had cash and interest-bearing deposits (book balances) totaling $3,079,821 as follows:
Demand deposits $ 174,538Money market accounts 917,203Time deposits 1,988,080
Total $ 3,079,821
These deposits are stated at cost, which approximates market. Under state law, thesedeposits, (or the resulting bank balances) must be secured by federal deposit insurance or the pledgeof securities owned by the fiscal agent bank. The market value of the pledged securities plus thefederal deposit insurance must at all times equal the amount on deposit with the fiscal agent bank.These securities are held in the name of the pledging fiscal agent bank in a holding or custodial bankthat is mutually acceptable to both parties. Deposit balances (bank balances) at December 31, 2005were secured as follows:
Bank balances $ 3,628,962
Federal deposit insurance $ 632,633Pledged securities (Category 3) 2,971,329
Total FDIC insurance and pledged securities $ 3,603,962
Pledged securities in Category 3 include uninsured or unregistered investments, for whichsecurities are held by the broker or dealer, or by its trust department or agent, but not in the Town'sname. Even though the pledged securities are considered uncollateralized (Category 3), LouisianaRevised Statute 39:1229 imposes a statutory requirement on the custodial bank to advertise and sellthe pledged securities within 10 days of being notified by the Town that the fiscal agent has failed topay deposited funds upon demand.
29
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
(5) Receivables
Receivables at December 31,2005 of $574,926 consist of the following:
AccountsUnbilled utilityAllowance for uncollectible accountsAd valoremFranchise tax
Interest
OtherTotals
(6) Due from Other Governmental Units
Amounts due from other governmental units of $206,690 at December 31, 2005 consisted ofthe following:
SalesGeneral Tax
$ - $ ---
121,21945,4176,995
2,000
$175,631 $ -
Utility$364,581
180,367(145,745)
-
92-
$399,295
Total$364,581
180,367(145,745)121,21945,4177,087
2,000
$574,926
General Fund:State of Louisiana - beer tax revenues receivableFEMA - Hurricane Katrina expense reimbursement receivable
Total due from other governmental units
$ 2,059204,631
$206,690
(7) Restricted Assets
A. Restricted assets in the enterprise utility fund consisted of the following at December 31,2005:
B.
Customers' depositsWater sinking fundWater depreciation and contingency
Total enterprise utility fund restricted assets
$323,20241,37558,627
$423,204
Restricted assets in the general fund pertain to prior year hospital revenue claims andconsisted of the following at December 31, 2005:
Worker's compensation claims depositsMalpractice claims depositsCancer treatment center bond restricted cash
Total general fund restricted assets
$ 100,000125,000750,000
$ 975,000
30
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
(8) Capital Assets
Capital asset activity for the year ended December 31,2005 was as follows:
Governmental activities:Capital assets not being depreciated:
LandOther capital assets:
BuildingsInfrastructureEquipment, furniture and fixturesVehicles
Totals
Less accumulated depreciationBuildingsInfrastructureEquipment, furniture and fixtures
VehiclesTotal accumulated depreciation
Governmental activities,capital assets, net
Business-type activities:Capital assets not being depreciated:
Land - sewer systemOther capital assets:
Gas systemWater systemSewer systemMachinery and equipment
Totals
Less accumulated depreciationGas systemWater systemSewer systemMachinery and equipment
Total accumulated depreciation
Business-type activities,capital assets, net
Balance01/01/05
402,9301,256,3251,265,281
830,006
3,754,542
Additions Deletions
$ 198,000 $
$2,996,672 $ 12,319 $
$ 63,910 $
400,7312,371,5722,385,0921,328,587
6,549,892
65,852 1,295
65,852 1,295
14,91181,95283,355
734
180,218
Balance12/31/05
$ 198,000
2,144,5601,504,010395,920236,029
4,478,519
363,189665,948292,560160,150
1,481,847
--
134,42423,654
158,078
55,31938,91927,33324,188
145,759
---3,250
3,250
--3,250
3,250
2,144,5601,504,010530,344256,433
4,633,347
418,508704,867319,893181,088
1,624,356
$3,008,991
$ 63,910
400,7312,371,5722,385,0921,393,144
6,614,449
417,8411,338,2771,348,636
829,272
734 3,934,026
$2,795,350 $ (114,366) $ 561 $2,680,423
31
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
Depreciation expense was charged to governmental activities as follows:
General government $ 17,848Police 19,794Highways and streets 45,244Culture and recreation 61,725Judicial 1,148
Total depreciation expense $ 145,759
Depreciation expense was charged to business-type activities as follows:
Gas $ 14,911Water 81,952Sewer 83,355
Total depreciation expense $180,218
(9) Accounts and Other Pavables
The accounts and other payables consisted of the following at December 31,2005:
Governmental Business-typeActivities Activities Total
Accounts $153,618 $201,986 $355,604Compensated absences 29,742 8,298 38,040Accrued liabilities 18 4,975 4,993
Totals $183,378 $215,259 $398,637
32
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
(10) Changes in Long-Term Debt
A. The following is a summary of long-term debt transactions of the Town for the year endedDecember 31,2005:
GovernmentalActivities Business-type Activities
Public CertificatesImprovement Revenue of Indebtedness Total
Long-term debt, January 1, 2005AdditionsRetirements
Long-term debt, December 31,2005
$170,000 $185,211
(81,000) (43,400)
$ 89,000 $141,811
$ $355,211
(124,400)
$230,811
Long-term debt payable at December 31, 2005 is comprised of the following individualissues:
Long-term debt -
Balance12/31/05
Due WithinOne Year
$693,000 Public Improvement Sales Tax Bonds Series 1995, due inannual installments of $39,000 to $89,000 through April 1, 2006;interest at 6.00 percent; payable from sales tax revenues $ 89,000 $ 89,000
$393,692 Water Revenue Refunding Bonds, Series 1998 due in annualinstallments of $24,485 - $51,557 through April 1, 2008; interest at6.90 percent; secured by water fund revenues. 141 gi i
The bonds are due as follows:
50 058
$230,811 $139,058
Governmental Activities Business-type ActivitiesYear ending
December 2005
200620072008
Total
Principalpayments
$ 89,000
Interestpayments
$ 2,670
Principalpayments
$ 50,05851,55740,195
Interestpayments
$ 8,0584,4521,387
$ 89,000 $ 2,670 $141,810 $13,897
33
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
B. In 1999, the Town issued $5,000,000 of revenue bonds for the construction of the SavoyCancer Center facility. These bonds are reported on the financial statements of SavoyCancer Center, Inc., a component unit of the Town (see Note 1), At December 31, 2005there were $3,520,000 of bonds outstanding.
C. Capital leases -
$65,450 equipment lease dated August 1, 2005, due in monthly installmentsof $1,237, including interest at 5.25% through July 1, 2010, secured byGeneral Fund revenues $ 59,390
Less: current portion of capital lease payable 12.015Noncurrent portion of capital lease payable $ 47,375
(11) Flow of Funds: Restrictions on Use - Water Revenues
Under the terms of the $393,692 Water Revenue Refunding Bonds, Series 1998, all incomeand revenues of every nature derived from the operation of the system are pledged and dedicated tothe retirement of said bonds.
Water Revenue Bond and Interest Sinking Fund
The Town is required to set aside into the Water Revenue Bond and Interest Sinking Fundmonthly in advance on or before the 20th day of each month of each year a sum equal to 176th of theinterest falling due on the next interest payment date and a sum equal to 1712th of the principal fallingdue on the next principal payment date. Funds deposited in this account are available only for theretirement of maturing bonds and interest.
Water Depreciation and Contingency Fund
The Town is required to maintain the Water Depreciation and Contingency Fund to care fordepreciation, extensions, additions, improvements, and replacements necessary to properly operatethe System, by transferring monthly in advance on or before the 20th day of each month a sum at leastequal to 5% of the amount to be paid into the Sinking Fund. Funds deposited into this account mayalso be used to pay the principal of and interest on bonds for the payment of which there is notsufficient money in the Sinking Fund, but if used, such money must be replaced as soon as possibleout of the earnings of the system after making the required monthly payments into the respectivefunds and accounts.
Utility Rates
It is further understood that the Town shall adopt a rate ordinance which shall providerevenue in each year, after paying all reasonable and necessary expenses of operating and maintainingthe water system in such year, at least equal to 130 percent of the largest amount of principal andinterest maturing on the bonds in any future fiscal year. Said rate ordinance shall also provide for a10 percent penalty charge for non-payment bills within fifteen days after the due date anddiscontinuance of service upon non-payment of bills within twenty-five days after the due date.
34
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
(12) Employee Retirement
A. Social Security System
Employees of the Town of Mamou who are not eligible to participate in anyother retirement system are members of the Social Security System. The Town andits employees contribute a percentage of each employee's salary to the System (7.65percent contributed by the Town; 7.65 percent contributed by the employee). TheTown's contributions during the years ending December 31,2005 and 2004 amountedto $99,803 and $89,161, respectively.
B. Municipal Police Employees Retirement System of Louisiana (System)
Plan Description - All full-time police department employees engaged in lawenforcement are eligible to participate in the System. Employees who retire at orafter age 50 with at least 20 years of creditable service or at or after age 55 with atleast 12 years of creditable service are entitled to a retirement benefit, payablemonthly for life, equal to 3 1/3% of their final-average salary for each year ofcreditable service. Final average salary is the employee's average salary over the 36consecutive or joined months that produce the highest average. Employees whoterminate with at least the amount of creditable service stated above, and do notwithdraw their employee contributions, may retire at the ages specified above andreceive the benefit accrued to their date of termination. The System also providesdeath and disability benefits. Benefits are established by state statute.
The System issues an annual publicly available financial report that includesfinancial statements and required supplementary information for the System. Thatreport may be obtained by writing to the Municipal Police Employees RetirementSystem of Louisiana, (225) 929-7411.
Funding Policy - Plan members are required by state statute to contribute7.5% of their annual covered salary and the Town is required to contribute at anactuarially determined rate. The current rate is 23.75% of annual covered payroll.The contribution requirements of plan members and the Town are established andmay be amended by state statute. As provided by R.S. 11:103, the employercontributions are determined by actuarial valuation and are subject to change eachyear based on the results of the valuation for the prior fiscal year. The Town'scontributions to the System for the years ending December 31, 2005 and 2004 were$9,412 and $8,119, respectively, equal to the required contributions for each year.
35
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
(13) Litigation and Claims
At December 31, 2005, the Town is involved in several lawsuits claiming damages. In theopinion of the Town's legal counsel, the only exposure to the Town would be any costs in defense ofthe lawsuits with no liability to the Town in excess of insurance coverage. The Town also expects tosettle old worker's compensation and malpractice claims within the next two years at an amount lessthan what it currently set aside for such claims. See also Note 15.
(14) Risk Management
A. Commercial Insurance Coverage
The Town is exposed to risks of loss in the areas of health care, general andauto liability, property hazards and workers' compensation. All of these risks arehandled by purchasing commercial insurance coverage. There have been nosignificant reductions in the insurance coverage during the year.
B. Group Self-Insurance
Effective July 1, 1998, the Town established a self-insurance health plan toaccount for and finance its uninsured risk of loss for commercial group healthinsurance. From January 1, 2005 through June 30, 2005, the plan was administeredby Total Benefit Services, Inc. The provider was changed to Southern BenefitServices effective July 1, 2005. Under this plan, the International Insurance AgencyServices, Inc. agreed to reimburse the Town for specific incurred claims related toany one covered employee or dependent which exceeds the retention by the Town,which is $25,000. For the plan year ending June 30, 2005, the InternationalInsurance Agency Services, Inc. will reimburse the Town for aggregate incurredclaims during the period of insurance less any amounts paid with respect to thespecific incurred claims, which exceeds the greater of $336,549 or the total ofmonthly payments by the Town. Monthly payments are calculated based on thenumber of employees with single coverage multiplied by a funding factor of $336and the number of employees with family coverage multiplied by a funding factor of$749. The Town currently funds the plan based upon actual claims incurred insteadof the funding factors discussed above.
36
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
The General and Utility Funds of the Town participate in the program andmake payments to the Self-Insurance Fund based upon amounts needed to pay priorand current year claims. The claims liability of $169,088 reported in the fund atDecember 31, 2005 is based on the loss that is probable at the date of the financialstatements and the amount of the loss that can be reasonably estimated. The Towncurrently does not discount its claims liabilities.
Reconciliation of Claims Liabilities
Claims payable, January 1,2005 $ 47,379
Insurance claims incurred for year ended December 31,2005 324,664Payments made for the year ended December 31, 2005 (202,955)
Claims payable, December 31,2005 $169,088
Claims payable of $ 169,088 at December 31,2005 was determined asfollows:
A. Claims incurred prior to December 31,2005 and paidin January 1,2006 through March 31,2006 $ 134,088
B. Provision for claims incurred but not reported 35,000
Total claims payable $ 169,088
The provision for claims incurred but not reported of $35,000 wascalculated utilizing historical information adjusted for current trends.
(15) Contingent Liabilities
At December 31, 2005, the Town had contingent liabilities in the amount of $350,000consisting of $225,000 in workers* compensation claims and $125,000 in malpractice claims, both ofwhich are the result of the prior operations of the hospital facility owned by the Town. The Town hascertificates of deposit totaling $225,000 held as security for these claims.
37
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
(16) Segment Information for the Enterprise Fund
The Town of Mamou maintains one enterprise fund with three departments, which providegas, water, and sewerage services. Segment information for the year ended December 31, 2005, wasas follows:
TotalGas Water Sewer Enterprise
Department Department Department Fund
Operating revenues $1,108,739 $ 420,166 $ 383,864 $1,912,769
Operating expenses:Depreciation 14,911 81,952 83,355 180,218Other 1,015,818 193,321 316,112 1,525,251
Total operating expenses 1,030,729 275,273 399,467 1,705,469
Operating income $ 78,010 $ 144,893 $ (15,603) $ 207,300
(17) Compensation of Town Officials
A detail of compensation paid to the Mayor and Board of Aldermen for the year endedDecember 31, 2005 follows:
Wilda Chamberlain, Mayor 26,344
Aldermen:Ricky Fontenot 9,493J.L. Saucier 9,000Jody Soileau 9,352Essie Holland 9,464Randall Young 9,292
Total $72,945
38
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
(18) Interfund Receivables/Payables
A. A summary of interfund receivables and payables at December 31,2005 follows:
Interfund InterfundReceivables Payables
Major governmental funds:General Fund $ - $ 90,605Sales Tax Fund 58,179
Proprietary funds:Enterprise Fund - 39,973
Group Health Self-Insurance Internal Service Fund 72,399 -
Total $ 130,578 $ 130,578
The receivable in the Group Health Self-Insurance Fund is for amounts owed from variousother funds for their share of health insurance premiums. The amounts due from the General Fund tovarious other funds are for short-term loans.
B. Transfers consisted of the following at December 31, 2005:
Transfers In Transfers OutMajor governmental funds:
General Fund $ 680,463 $Sales Tax Special Revenue Fund - 519,735P. I. Sales Tax Refunding Bonds Debt Service Fund 92,247 -
Total governmental funds 772,710 519,735
Proprietary funds:Enterprise Fund - 252,975
Total $772,710 $ 772,710
Transfers are used to (a) move revenues from the fund that statute or budget requires tocollect them to the fund that statute or budget requires to expend them and to (b) use unrestrictedrevenues collected in the general fund to finance various programs accounted for in other funds inaccordance with budgetary authorizations.
39
TOWN OF MAMOU, LOUISIANA
Notes to Financial Statements (Continued)
(19) Operating Lease Revenues
The Town has negotiated the lease of Savoy Medical Center and Savoy Care Center NursingHome. Under the Savoy Medical Center lease agreement, the Town will receive $63,750 per monthfor a primary term of five years commencing on February 1, 2005 and ending on January 31, 2010.This lease includes on option by lessee to renew for three additional periods of five years. Under theSavoy Care Center Nursing Home agreement, the Town will receive $18,525 per month on a month-to-month basis commencing on February 1, 2005.
(20) Economic Dependency
The Town of Mamou owns a hospital facility and nursing home within the Town. Thehospital is leased to Rapides Healthcare System, LLC operating as Savoy Medical Center for$765,000 per year. The nursing home is leased to MH3F Healthcare Management, LLC operating asSavoy Care Center Nursing Home for $222,300 per year. These leases provide a significant portionof the Town's total revenues. If the Town were to cease receiving these lease revenues, the Town'sability to continue to provide services at present levels would be threatened.
(21) Enterprise Fund Contracts
The Town of Mamou, under contract dated January 1, 1997, is required to purchase itsnatural gas from the Louisiana Municipal Gas Authority. The contract automatically renews annuallyunless notice is given in writing six months in advance. The Town purchased natural gas during theyear ended December 31, 2005 in the amount of $717,450 of which $165,370 was owed for purchasesfor the month of December 2005.
40
41
TOWN OF MAMOU, LOUISIANAGeneral Fund
Budgetary Comparison ScheduleFor the Year Ended December 31, 2005
Revenues:TaxesLicenses and permitsIntergovernmentalFines and forfeitsMiscellaneous
Total revenues
Expenditures:Current:
General government:Administrative
Public safety:Police
Highways and streetsCulture and recreationJudicialCentral garage
Capital outlayDebt service
Total expenditures
Deficiency of revenuesover expenditures
Other financing sources (uses):Proceeds from capital leaseTransfers from -
Utility FundSales Tax Fund
Transfer to component unit
Total other financing sources (uses)
Excess (deficiency) of revenues andother sources over expendituresand other uses
Fund balance, beginning
Fund balance, ending
BudgetOriginal
$ 258,500115,000106,000100,000943,200
1,522,700
595,700
(310,500)
300,000
300,000
Final Actual
$ 338,500 $ 343,290
120,000 123,274270,000 275,672333,000 324,696
1,159,850 1,184,156
2,221,350 2,251,088
804,000 802,937
(300,450) (267,951)
65,450
200,000400,000
(445,000)
155,000
65,451
252,975427,488
(444,262)
301,652
(10,500) (145,450) 33,701
2,146,905 2,146,905 2,146,905
Variance withFinal Budget
Positive(Negative)
$ 4,7903,2745,672
(8,304)24,306
29,738
1,063
605,100419,000163,50049,900
---
1,833,200
790,100537,330193,55088,5206,500
101,8007,500
2,521,800
782,681544,668186,18988,4686,95599,7177,424
2,519,039
7,419(7,338)7,361
52(455)2,083
7610,185
32,499
1
52,97527,488
738
81,201
113,700
$2,136,405 $2,001,455 $2,180,606 $ 113,700
42
TOWN OF MAMOU, LOUISIANASales Tax Special Revenue Fund
Budgetary Comparison ScheduleFor the Year Ended December 31,2005
Revenues:TaxesMiscellaneous -
InterestOther
Total revenues
Expenditures:Current:
General governmentCapital outlay
Total expenditures
Excess of revenuesover expenditures
Other financing uses:Transfers out
Excess (deficiency) of revenuesover expenditures and other uses
Fund balances, beginning
Fund balances, ending
BudgetOriginal
33,000218,000
251,000
312,000
Final Actual
35,00086,000
121,000
503,000
47,34558,361
105,706
511,713
(595,000) (805,000) (519,735)
(283,000) (302,000)
454,593 454,593
Variance withFinal Budget
Positive(Negative)
$ 560,000 $ 621,000 $ 612,963 $ (8,037)
3,000
563,000
3,000
624,000
3,679111
617,419
679111
(6,58i;
(12,345)27,639
15,294
8,713
285,265
(8,022) 293,978
454,593
171,593 $ 152,593 $ 446,571 $ 293,978
43
OTHER SUPPLEMENTARY INFORMATION
44
OTHER FINANCIAL INFORMATION
45
TOWN OF MAMOU, LOUISIANA
Statement of Net AssetsDecember 31,2005
With Comparative Totals for December 31,2004
ASSETSCurrent assets:
Cash and interest-bearing depositsReceivables, netDue from other governmental unitsInventoryPrepaid items
Total current assets
Noncurrent assets:Restricted assets:
Cash and interest-bearing depositsCapital assets, net
Total noncurrent assets
Total assets
LIABILITIESCurrent liabilities:
Accounts and other payablesClaims payableInternal balancesCapital lease payableBonds payableAccrued interest
Total current liabilities
Noncurrent liabilities:Customers deposits payableContingent liabilitiesCapital lease payableBonds payable
Total noncurrent liabilities
Total liabilities
NET ASSETSInvested in capital assets, net of related debtRestricted for debt serviceUnrestricted
Total net assets
2005Governmental
Activities
$1,641,602175,760206,690
-20,385
2,044,437
975,0003,008,991
3,983,991
6,028,428
183,378169,089(39,973)12,01589,000
1,335414,844
350,00047,375
-
397,375
812,219
2,958,36644,364
2,213,479
$5,216,209
Business-TypeActivities
$ 40,014399,166
-44,9567,162
491,298
423,2052,680,423
3,103,628
3,594,926
215,259-
39,973-
50,0582,446
307,736
224,034--
91,753
315,787
623,523
2,588,670-
382,733
$2,971,403
Total
$ 1,681,616574,926206,69044,95627,547
2,535,735
1,398,2055,689,414
7,087,619
9,623,354
398,637169,089
-12,015
139,0583,781
722,580
224,034350,00047,37591,753
713,162
1,435,742
5,547,03644,364
2,596,212
$ 8,187,612
2004Totals
$1,366,721414,890
2,47639,8586,759
1,830,704
1,838,0215,792,022
7,630,043
9,460,747
234,29447,379
124,4015,745
411,819
219,219675,000
230,810
1,125,029
1,536,848
5,561,21259,521
2,303,166
$7,923,899
46
TOWN OF MAMOU, LOUISIANA
Balance SheetGovernmental FundsDecember 31,2005
With Comparative Amounts as of December 31, 2004
2005
ASSETS
CashInterest-bearing depositsReceivables:
TaxesAccrued interestDue from other governmental unitsOther
Due from other fundsPrepaid expensesRestricted cash:
Interest-bearing depositsTotal assets
LIABILITIES AND FUND BALANCES
Liabilities:Accounts and other payablesCompensated absences payableDue to other fundsOther
Total liabilities
Fund balances -Reserved for debt serviceUnreserved, undesignated
Total fund balances
Total liabilities and fund balances
General
$ 142,532915,507
166,6366,995
206,6902,129-
20,385
975,000
$2,435,874
$ 134,90329,74290,605
18255,268
2,180,606
2,180,606
$2,435,874
Sales TaxSpecialRevenue
$407,107
----
58,179-
_
$ 465,286
$ 18,715---
18,715
446,571
446,571
$ 465,286
DebtServiceFund Total
$ - $ 142,532146,714 1,469,328
166,6366,995
206,6902,12958,17920,385
975,000
$ 146,714 $3,047,874
$ - $ 153,61829,74290,605
18273,983
146,714 146,7142,627,177
146,714 2,773,891
$146,714 $3,047,874
2004
$ 122,6471,210,148
137,5963,9132,476129
48,0291,267
1,425,000
$2,951,205
$ 81,93615,791107,8761,033
206,636
143,0712,601,498
2,744,569
$2,951,205
47
TOWN OF MAMOU, LOUISIANA
Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds
For the Year Ended December 31,2005With Comparative Actual Amounts for the Year Ended December 31,2004
2005
Revenues:TaxesLicenses and permitsIntergovernmentalFines and forfeitsMiscellaneous
Total revenues
Expenditures:Current -
General government:Administrative
Public safety:Police
Highways and streetsCulture and recreationJudicialCentral garage
Capital outlayDebt service -
Principal retirementInterest and fiscal charges
Total expenditures
Excess (deficiency) of revenuesover expenditures
Other financing sources (uses):Proceeds from capital leaseTransfers inTransfers out
Transfers in (out) - component unit
Total other financing sources (uses)
Net changes in fund balances
Fund balances, beginning
Fund balances, ending
General
$ 343,290123,274275,672324,696
1,184,156
2,251,088
802,937
782,681544,668186,18988,4686,95599,717
6,0611,363
2,519,039
(267,951)
65,451680,463
-(444,262)
301,652
33,701
2,146,905
$2,180,606
Sales TaxSpecialRevenue
$ 612,963---4,456
617,419
47,345
-
----
58,361
--
105,706
511,713
-(519,735)
-
(519,735)
(8,022)
454,593
$ 446,571
DebtServiceFund
$ ----1,1761,176
1,010
_
-----
81,0007,770
89,780
(88,604)
92,247
-
-92,247
3,643
143,071
$ 146,714
Total
$ 956,253123,274275,672324,696
1,189,788
2,869,683
851,292
782,681544,668186,18988,4686,955
158,078
87,0619,133
2,714,525
155,158
65,451772,710
(519,735)
(444,262)
(125,836)
29,322
2,744,569
$2,773,891
2004
$ 884,099115,85057,824113,123
1,109,860
2,280,756
680,446
627,370431,144175,46165,954
130,005
73,00012,390
2,195,770
84,986
805,806(368,438)
(455,303)
(17,935)
67,051
2,677,518
$2,744,569
48
TOWN OF MAMOU, LOUISIANAGeneral Fund
Budgetary Comparison Schedule - RevenuesFor the Year Ended December 31, 2005
With Comparative Actual Amounts for the Year Ended December 31, 2004
2005
Taxes:Ad valoremFranchise -
ElectricTelephoneCable TV
Total taxes
Licenses and permits:
Occupational licensesPermits
Total licenses and permits
Intergovernmental:
Federal grants •Federal Emergency Mgmt. AssistanceSummer feeding grant
State of Louisiana-
Beer taxesHighway maintenanceRural Development grantDARE grantEvangel ine Parish tourist commission grant
Total intergovernmental
Fines and forfeits:
Fines and court costs
Miscellaneous:InterestHospital lease revenueHospital receivable revenueNursing home lease revenueHospital workers comp recoveriesRentalsRecreation complex
Other sources
Total miscellaneous
Total revenues
BudgetOriginal
$ 130,000
113,00015,500
-
258,500
115,000
-115,000
-
6,000-
--
100,000106,000
100,000
10,000900,000
---5,00023,0005,200
943,200
$1,522,700
Final
$ 165,000
138,00015,50020,000338,500
120,000-
120,000
250,000-
6,0004,000
--
10,000270,000
333,000
43,000775,00010,000200,00076,0005,00023,00027,850
1,159,850
$2,221,350
Actual
$ 167,012
140,63315,93519,710343,290
121,7791,495
123,274
253,283-
7,7844,605--
10,000275,672
324,696
44,801776,25210,248206,72578,1044,55025,03938,437
1,184,156
$2,251,088
Variance withFinal Budget
Positive(Negative)
$ 2,012
2,633435(290)4,790
1,7791,4953,274
3,283-
1,784605--
-5,672
(8,304)
1,8011,252248
6,7252,104(450)2,03910,587
24,306
$ 29,738
2004Actual
$ 182,710
117,4978,16522,142330,514
114,3121,538
115,850
18,534
8,8824,60522,5003,303
-57,824
113,123
35,840900,00013,714-
107,8184,71824,66516,587
1,103,342
$1,720,653
49
TOWN OF MAMOU, LOUISIANAGeneral Fund
Budgetary Comparison Schedule - ExpendituresFor the Year Ended December 31,2005
With Comparative Actual Amounts for the Year Ended December 31,2004
2005
Current:General government:
Administrative -Mayor and council salariesOther salaries and wagesGroup insuranceInsurancePayroll taxesMaterials and suppliesAdvertisements and recordingsLegal feesAccounting and auditingProfessional feesMiscellaneousUtilities and telephoneRepairs and maintenanceEquipment rentalTrainingLegal settlementHospital workers' comp claimsHurricane expenditures
Total administrative
Public safety:Police -
SalariesPayroll taxesRetirement contributionGroup insuranceUtilities and telephoneInsuranceAutoGas and repairsProfessional feesMiscellaneousSuppliesEquipment rentalTrainingHurricane expenditures
Total police department
BudgetOriginal
$ 60,232199,87698,25032,75019,49223,000-
33,00023,00051,50027,00016,2007,500-3,900-
--
595,700
358,80031,2008,000
43,89023,50033,11026,00025,600
1,50023,50022,000
1,0007,000-
605,100
Final
$ 78,800239,800
63,00021,00025,40029,40010,0009,500
84,0003,000
50,00016,60046,600-3,900
10,000
80,00033,000
804,000
408,42035,0809,200
60,44031,30082,56037,00021,900
6,50046,70044,000
1,3005,700-
790,100
Actual
$ 72,945238,985
67,61622,34225,55629,09210,2047,838
83,2063,249
47,48116,53847,863
4322,813
10,000
83,37733,400
802,937
409,10835,8459,412
58,60531,43576,84337,76120,364
6,18443,82945,561
1,0565,5441,134
782,681
Variance withFinal Budget
Positive(Negative)
$ 5,855815
(4,616)(1,342)
(156)308
(204)1,662
794(249)
2,51962
(1,263)(432)
1,087-(3,377)
(400)1,063
(688)(765)(212)
1,835(135)
5,717(761)
1,536316
2,871(1,561)
244156
(M34)7,419
69,000202,60455,32528,74722,73935,7687,31830,93366,8182,90846,78215,40617,460420
2,924
45,967
651,119
349,95132,1008,11949,09128,26453,82923,98616,7968,61725,71027,7071,1002,100
627,370
(continued)
50
TOWN OF MAMOU, LOUISIANAGeneral Fund
Budgetary Comparison Schedule - Expenditures (continued)For the Year Ended December 31,2005
With Comparative Actual Amounts for the Year Ended December 31, 2004
2005
Highways and streets:SalariesPayroll taxesMaintenance and suppliesLightingGroup insuranceTelephoneInsuranceInmate laborMiscellaneousAutoEquipment rentalProfessional fees
TrainingHurricane expenditures
Total highways and streets
Culture and recreation -SalariesPayroll taxesRepairs and maintenanceMaterials and suppliesAutoUtilities and telephoneInsuranceEquipment rentalGroup insuranceMiscellaneousProfessional feesConcession purchasesAdvertisingHurricane expenditures
Total culture and recreation
BudgetOriginal
138,00012,00075,00051,00047,0002,500
33,0006,500
21,00030,000-3,000
--
419,000
66,5165,784
13,00025,800
3,00013,00021,105
20012,3951,300-1,200
200-
163,500
Final
211,71017,52061,50051,00058,0003,300
37,00011,00016,00030,300-3,000
-37,000
537,330
55,6604,8408,500
33,0003,700
39,55025,035
20016,4651,300-2,300-3,000
193,550
Actual
211,62818,90862,57554,33458,6053,828
36,7569,965
18,51729,276
8711,742
58637,077
544,668
52,5554,534
10,14133,6622,757
40,05022,319
23413,023
751661
2,323-3,179
186,189
Variance withFinal Budget
Positive(Negative)
82(1,388)(1,075)(3,334)
(605)(528)244
1,035(2,517)1,024(871)
1,258
(586)(77)
(7,338)
3,105306
(1,641)(662)943
(500)2,716
(34)3,442
549(661)(23)
-(179)
7,361
2004Actual
145,47819,78391,79346,87341,3402,360
35,3776,797
17,06119,6842,723
914961
-
431,144
58,4375,460
15,44622,9432,792
34,89225,650
1047,751
200100
1,492194_
175,461
(continued)
51
TOWN OF MAMOU, LOUISIANAGeneral Fund
Budgetary Comparison Schedule - Expenditures (continued)For the Year Ended December 31,2005
With Comparative Actual Amounts for the Year Ended December 31,2004
2005
Judicial:SalariesPayroll taxesOffice rentalInsuranceGroup insuranceMaterials and suppliesRepairs and maintenanceTelephoneProfessional feesMiscellaneous
Total judicial
Central Garage:SalariesPayroll taxesInsurance
Total central garage
Capital outlay:General government:
LandTotal general government
BudgetOriginal Final
Variance withFinal Budget
PositiveActual (Negative)
2004Actual
39,0602,9402,100
1,0001,8001,0001,900
100
49,900
57,0003,9202,100
15,0003,8001,7004,400
600
88,520
6,500
6,500
56,1954,4302,100
16,2793,6951,3423,950
477
88,468
6,435180
340
6,955
805(510)
(1,279)105358450
123
52
65
(180)
(340)
(455)
42,4623,4892,100
10012,919
1,445930
2,169340
65,954
Public Safety:Police -
AutosEquipment
Total police
26,0004,000
30,000
21,0043,830
24,834
4,996170
5,166
Highways and streets:AutosEquipment
Total highways and streets
65,00065,000
2,65065,45168,101
(2,650)(451)
(3,101)
Culture and recreation:Fence for baseball field
Total culture and recreation10,17610,176
JudicialEquipment
Total judicial6,8006.800
6,7826,782
1818
Total capital outlay
Debt service:Retirement of principalInterest and fiscal charges
Total debt service
Total expenditures
101,800
6,1001,4007,500
99,717
6,0611,3637,424
$1,833,200 $2,515,300 $2,519,039
52
2.083
393776
10,640
10,176
$1,961,224
TOWN OF MAMOU, LOUISIANASpecial Revenue Fund
Sales Tax Fund
Budgetary Comparison ScheduleFor the Year Ended December 31, 2005
With Comparative Actual Amounts for the Year Ended December 31,2004
2005
Revenues:TaxesMiscellaneous:
Interest
Other
Total revenues
Expenditures:Current -
General government -Audit and accountingMiscellaneousIndustry and tourism inducement
Total general government
Capital outlay -General government:
Roof for town hallA/CunitEquipment
Public safety:Police station improvementsVehiclesEquipmentA/Cunit
Highways and streets:Street improvementsVehiclesEquipment
Culture and recreation:A/CunitEquipmentPlaza mural project
Judicial:Equipment
Total capital outlay
Total expenditures
Excess of revenues over expenditures
Other financing uses:
Transfers to -
Debt Service FundUtility FundGeneral Fund
Total other financing uses
Excess (deficiency) of revenues over
expenditures and other uses
Fund balance, beginning
Fund balance, ending
BudgetOriginal
$ 560,000
3,000
563,000
5,000
28,000
33,000
30,000
40,000
42,000
-
106,000
218,000
251,000
312,000
(88,000)(207,000)(300,000)
(595,000)
(283,000)
454,593
$ 171,593
Final
$ 621,000
3,000
624,000
5,000
30,000
35,000
4,00035,000
5,000
42,000
-
-
86,000
121,000
503,000
(88,000)(302,000)(415,000)
(805,000)
(302,000)
454,593
$ 152,593
Actual
$ 612,963
3,679
111617,419
5,0348,868
33,443
47,345
4,12536,491
5,446
-
1,174
1,425
9,700
58,361
105,706
511,713
(92,247)
(427.488)
(519,735)
(8,022)
454,593
$ 446,571
Variance withFinal Budget
Positive(Negative)
$ (8,037)
679
(6,581)
(34)(8,868)(3,443)
(12,345)
(125)(1,491)
(446)
42,000
(1,174)
(1,425)
(9,700)
27,639
15,294
8,713
(4,247)302,000(12,488)
285,265
293,978
-
$ 293,978
2004Actual
$ 553,585
2,246
555,831
3,495725
24,080
28,300
10,855
6,000
8,55538,800
1,433
38,8613,5004,360
5,032
2,433
119,829
148,129
407,702
(89,087)
(279,351)
(368,438)
39,264
411,781
$ 451,045
53
TOWN OF MAMOU, LOUISIANAEnterprise Fund
Utility Fund
Schedule of Number of Utility Customers(Unaudited)
December 31,2005
Records maintained by the Town indicated the following number of customers were beingserviced during the month of December 2005 and 2004:
Department 2005 2004
Gas(metered) 1,195 1,181Water 1,675 1,650Sewerage 1,258 1,249
54
TOWN OF MAMOU, LOUISIANA
Schedule of Insurance In Force(Unaudited)
December 31,2005
Description of Coverage
Workmen's compensation -Employer's liability- policy limitBodily injury by accidentBodily injury by disease
Surety bonds -Fidelity bondNotary public bond
Commercial general liability -Premises/operationsProducts/completed operationsBoiler and Machinery - equipmentMedical payments per personMedical payments per accidentFire legal liability
Law enforcement officers' comprehensive liability
Automobile liability
Public officials' errors and omissions liability
Commercial fire and extended coverage -BuildingsContentsBoiler and machinery - equipment
CoverageAmounts
Statutory500,000100,000100,000
30,0005,000
500,000500,000525,000
1,00010,00050,000
500,000
500,000
500,000
3,914,5952,845,0002,025,000
55
TOWN OF MAMOU, LOUISIANA
Combined Schedule of Interest-Bearing Deposits and Investments - All FundsDecember 31,2005
Major Governmental Funds:General Fund -
Certificate of Deposit - Worker's Comp SecurityCertificate of Deposit - Malpractice ClaimsCertificate of Deposit - Hospital Revenue FundCertificate of Deposit - CTC Bond SecurityCertificate of Deposit - Hospital Revenue CITSavings Account - Hospital RevenueInterest-bearing checking - GeneralInterest-bearing checking - Payroll
Interest-bearing checking-Law Enforcement GrantsInterest-bearing checking - Insurance Contengency
Total General Fund
Special Revenue Funds -Sales Tax Fund
Interest-bearing checking - Sales Tax FundInterest-bearing checking - Construction Account
Total Sales Tax Fund
(C)(B)(C)(C)(C)(G)(G)(G)(S)(S)
InterestRate
3.85%2.91%1.70%3.55%3.55%1.50%1.25%1.25%
1.25%1.25%
MaturityDate
11/21/0605/06/0605/16/0611/08/0605/21/06
N/AN/AN/A
N/AN/A
Total BookValue
$ 100,000125,000516,145750,000300,000
6,25935,94456,317
56786
1,890,507
(S)(S)
1.00%1.25%
N/AN/A
392,95914,148
407,107
Nonmajor Governmental Funds:Debt Service Fund -
Sales Tax Bond Reserve Fund:Interest-bearing checking
Sales Tax Bond Sinking Fund:Interest-bearing checking
Total Debt Service Fund
(S)
(S)
1.25%
1.25%
N/A
N/A
79,399
67,315146,714
Total Governmental Funds $2,444,328
(continued)
56
TOWN OF MAMOU, LOUISIANA
Combined Schedule of Interest-Bearing Deposits and Investments - All Funds (Continued)December 31,2005
InterestRate
Maturity Total BookDate Value
Proprietary Fund:Utility Fund:
Operating Account -Interest-bearing checking
Water Revenue Fund -Interest-bearing checking
Meter Deposit Fund -Certificate of DepositCertificate of DepositInterest-bearing checking
Water Revenue & Interest Sinking Fund -Interest-bearing checking
Water Depreciation & Contengency FundInterest-bearing checking
Total Proprietary Fund
Total Interest-bearing Deposits andInvestments - All Funds
(C)
(S)
(S)(G)(G)
(S)
(S)
1.00%
1.00%
3.35%3.00%1.25%
1.25%
1.25%
N/A
N/A
07/28/0603/25/06
N/A
N/A
N/A
14,380
25,623
157,59741,592
124,013
41,375
58,628
463,208
$ 2,907,536
Certificates of deposit, savings account andinterest-bearing checking accounts with —
(B) Bank One, Baton Rouge, Louisiana(C) Citizens Bank, Ville Platte, Louisiana(G) Guaranty Bank, Mamou, Louisiana(S) Sabine State Bank, Many, Louisiana
57
TOWN OF MAMOU, LOUISIANA
Proprietary FundsStatement of Net Assets
December 31,2005 and 2004
Business-type Activities - Governmental Activities -
ASSETSCurrent assets:
CashInterest-bearing depositsReceivables:
AccountsUnbilled utility receivablesAccrued interest receivableDue from other funds
Inventory - natural gasPrepaid items
Total current assetsNoncurrent assets:
Restricted assets -Interest-bearing deposits
Capital assets, net of accumulated depreciation
Total noncurrent assets
Total assets
LIABILITIESCurrent liabilities:
Accounts and other payablesCompensated absences payableClaims payableDue to other fundsPayable from restricted assets -
Revenue bondsAccrued interest payable
Total current liabilities
Noncurrent liabilities:Customers' depositsRevenue bonds payable
Total noncurrent liabilities
Total liabilities
NET ASSETSInvested in capital assets, net of related debtRestricted for debt serviceUnrestricted
Total net assets
Enterprise Fund2005
$ 1240,003
218,707180,367
92-
44,9567,162
491,298
423,2052,680,423
3,103,628
3,594,926
206,9618,298-
39,973
50,0582,446
307,736
224,03491,753
315,787
623,523
2,588,670
382,733
$ 2,971,403
2004
$ 1129,780
149,240123,821
1916,77139,8585,492
355,164
413,0212,795,350
3,208,371
3,563,535
132,8982,636--
43,4013,195
182,130
219,219141,810
361,029
543,159
2,653,540
366,836
$3,020,376
Internal Service Fund2005
$ 29,742-
---
72,399--
102,141
-
-102,141
-169,089
-
--
169,089
--
169,089
-
(66,948)
$ (66,948)
2004
$ 4,135-
_
--
53,076--
57,211
-
-57,211
-47,379
-
--
47,379
--
47,379
-
9,832
$ 9,832
58
TOWN OF MAMOU, LOUISIANA
Proprietary FundsStatement of Revenues, Expenses, and Changes in Fund Net Assets
Years Ended December 31,2005 and 2004
Operating revenues:Charges for servicesPermits, reconnections and penaltiesMiscellaneous
Total operating revenues
Operating expenses:Gas department expensesWater department expensesSewerage department expensesDepreciation expenseSelf insurance expenses
Total operating expenses
Operating income
Nonoperating revenues (expenses):Interest incomeInterest expense
Total nonoperating revenues (expenses)
Income before contributions and transfers
Capital contributions
Transfers in (out):Transfers inTransfers out
Total transfers in (out)
Change in net assets
Net assets, beginning
Net assets, ending
Business-type Activities-Enterprise Fund
2005
$1,858,06045,3139,396
1,912,769
1,015,818193,321316,112180,218
1,705,469
207,300
204,002
2004
$1,698,93346,4315,313
1,750,677
818,204210,158234,121178,553
1,441,036
309,641
7,236(10,534)
(3,298)
5,176(14,156)
(8,980)
300,661
(252,975) (437,368)
(252,975) (437,368)
(48,973) (136,707)
3,020,376 3,157,083
$2,971,403 $3,020,376
Govermental Activities-Internal Service Fund2005
457,572457,572
(76,780)
(76,780)
(76,780)
9,832
2004
$380,792 $299,168
380,792 299,168
289,336289,336
9,832
9,832
9,832
$ (66,948) $ 9,832
59
fM CM Ooo ^r m•<T so oo
oo ro r-so o mrr c-- ooob" pC in"oo c-1
•*r o oOOoof Kr-
CM m^ ON ONO\ fi Oin so in 5
m ON Osm r- OON (S O
ON
ON00
^H o
m so "— so sor^ o ONON" so"O —i
Tf O (Sr ~ so m•H °°* °.ts" in" rio •-•
oo f) Osm (S ON
(NON
CN ( 1 ^o o m
oo soON Tj-so
o m soso - ON
in - ~H»n t*- mi— so r-r i m (*-•TJ*
<N Oso *nso oo1 |C t"in
so cr* mSO SO- (Noo in
Is- i** t1- t— m soC l f OO >— • f ^r- m t-* i— ' ONfsf so" ON" <— • ON"
H
f)OO,— rON(S
ONOONrf
64
•* •<*3: T}- mO (Sr<->
(Ssoooso
Ttf -oo1 mm
C4inf--*
csmo>--4OQ
CM00rrONm
M
R1 rn
fS Tfo so ino
m mo so
— • >m so
ooo— i
—
mr-r4mp-CS
mo\oo
?64
o s o — < r - o c M s o m s o
— sor--r-t--in
OSO
u
o« • (1)
pera
ting
reve
nues
Cus
tom
ers
serv
ic<
O
.H°+jca•o
tA
§•?
Perm
its, r
econ
nec
Mis
cella
neou
sin
g re
venu
es
c5fc.u0-o3oH
• •
pera
ting
expe
nses
Sala
ries
O
en<u
1OH G
roup
Ins
uran
ceG
as p
urch
ased
en
"ft.O.w
Mai
nten
ance
and
00c1•oL*u* $Rj ti
<U(Aa<u
Dep
reci
atio
n ex
pU
tiliti
es
coJ3a"uH T
ruck
ope
ratio
nB
ad d
ebts
Insu
ranc
eM
isce
llane
ous
Prof
essi
onal
fee
s
"3"3H
ing
expe
nses
s2<u§•-2
tg in
com
e
u
Net
ope
rati
COMPLIANCE
AND
INTERNAL CONTROL
61
KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTS
C. Burton Kolder, CPA"Russell F. Champagne, CPA*Victor R Slaven. CPA"P. Troy Courville. CPA*Gerald A. Thibodeaux, Jr., CPA"Robert S. Carter, CPA'Arthur R. Mixon, CPA
OFFICES
Tynes E. Mixon, Jr., CPAAllen J. LaBry, CPAAlbert R. Leger. CPA.PFS.CSA'Harry J. Clostio, CPAPenny Angelle Scruggins, CPAChristine L. Cousin, CPAMary T. Thibodeaux, CPAJames R. Roy, CPARobert J. Mete, CPAKelly M.Doucet, CPACheryl L. Bartley, CPA, CVAMandy B Self, CPAChris E. Bilski, CPA
183 South Beadle Rd. 113 East Bridge StLafayette, LA 70506 Breaux Bridge, LA 70517Phone (337) 232-4141 Phone (337) 332-4020Fax (337) 232-8660 Fax £337) 332-2867
133 East Waddil 1234 David OR. Ste 203Marksville, LA 71351 Morgan City, LA 70380Phone (318) 253-9252 Phone (985) 384-2020Fax (318) 253-8681 Fax (985) 384-3020
408 West Cotton Street 332 West Sixth AvenueVille Platte, LA 70586 Oberiln, LA 70655Phone (337) 363-2792 Phone (337) 639-4737Fax (337) 363-3049 Fax (337) 639-4568
200 South Main StreetAbbeville. LA 70510Phone (337) 893-7944Fax (337) 893-7946
450 East Main StreetNew Iberia, LA 70560
Phone (337) 367-9204Fax (337) 367-9208
Retired:Conrad 0. Chapman, CPA* 2006
*A Professional Accounting Corporation
REPORT ON COMPLIANCE AND ON INTERNAL CONTROLOVER FINANCIAL REPORTING BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITH GOVERNMENT AUDITING STANDARDS
WEBSITE;WWW. KCSRCPAS.COM
The Honorable Wilda Chamberlain, Mayorand Members of the Board of Aldermen
Town of Mamou, Louisiana
We have audited the basic financial statements of the Town of Mamou, Louisiana's (the Town)primary government as of and for the year ended December 31, 2005, and have issued our report thereondated June 2, 2006. We conducted our audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained in Government AuditingStandards issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the Town's financial statements are free ofmaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations,contracts, and grants, noncompliance with which could have a direct and material effect on the determinationof financial statement amounts. However, providing an opinion on compliance with those provisions was notan objective of our audit, and accordingly, we do not express such an opinion. The results of our testsdisclosed four instances of noncompliance that are required to be reported under Government AuditingStandards which are described in the accompanying summary schedule of current and prior year auditfindings as items 05-2 (C), 05-3(C), 05-4(C) and 05-5(C).
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Town's internal control over financialreporting in order to determine our auditing procedures for the purpose of expressing our opinion on thefinancial statements and not to provide assurance on the internal control over financial reporting. However,we noted a certain matter involving the internal control over financial reporting and its operation that weconsider to be a reportable condition. Reportable conditions involve matters coming to our attention relatingto significant deficiencies in the design or operation of the internal control over financial reporting that, in ourjudgment, could adversely affect the Town's ability to record, process, summarize and report financial dataconsistent with the assertions of management in the financial statements. The reportable condition isdescribed in the accompanying summary schedule of current and prior year audit findings as item 05-1 (1C).
Member of:AMERICAN INSTITUTE OFCERTIFIED PUBLIC ACCOUNTANTS
Member of:SOCIETY OF LOUISIANA
CERTIFIED PUBLIC ACCOUNTANTS
62
A material weakness is a condition in which the design or operation of one or more of the internalcontrol components does not reduce to a relatively low level the risk that misstatements in amounts thatwould be material in relation to the financial statements being audited may occur and not be detected within atimely period by employees in the normal course of performing their assigned functions. Our considerationof the internal control over financial reporting would not necessarily disclose all matters in the internal controlthat might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditionsthat are also considered to be material weaknesses. However, we believe the reportable condition describedabove is a material weakness.
We also noted other matters involving the internal control over financial reporting that we havereported to management of the Town in a separate letter dated June 2,2006.
This report is intended solely for the information of the Town's management and federal awardingagencies and pass-through entities and is not intended to be and should not be used by anyone other than thesespecified parties. Although the intended use of this report maybe limited, under Louisiana Revised Statute24:513, this report is distributed by the Legislative Auditor as a public document.
Kolder, Champagne, Slaven & Company, LLCCertified Public Accountants
Ville Platte, LouisianaJune 2,2006
63
•o cu oII a1 IQ33
o -Ka
OU
ISIA
NA
j
MA
MO
U,
u-O5oE-
00^c•3cE:3
rior Y
ear A
uon
Pla
nr 3
1, 2
005
CL 'C <P
urre
nt a
ndrr
ectiv
e A
ced
Dec
emb
^ r3 "9'SS'S
1 § §
•8 x•suc«
£s53
Cfl
U
> G ~
ts .1 §g 3 £S < H
on o
f fin
ding
oouQ
3"u.cocu
&O
uoi
•Hou
.csg10.u
*s2en*succS£us
•a0>
UcoH
(L>
1U
-Cuen
Icu
Ou•o
with
the
bon
oOuQ
0 -^•g »£ cx s3 S0 S
U 4>•€ £3« 12_e •"•^ a2i 003 CS3<u £0 M
** u» J=•c *-,o o
*B »» 2u <u
^ OTcS §
1*If« 5g S
il& *S 2
|o
t3Pboo5t.
a•oi.X13
u
1
o6<L>
Q
3j=u3
ex.>»O
enu3•S3O.00c1EEo
tfcc1a23o
J3wC
1uS
J*S30
£«*H
Or-c.2o(U
Cfl
Tf
_a>"oC<uu•oC
-a-B15*r"
So.
§«5
c.2"•33'i
the
stat
e co
n
ouCD
Q
3"(U
oJX
3^O
«£
§wCU
3ene-tsu
2o•S
Man
agem
en;
•«uU
oH
•oiWl
C«
.g
1
"e300
JU
•si>*"5,
1
.-§*coOO.u•o
"rt
«»
"EnoQ.U
T3
§
8en
O*j
|
1•s
colla
tera
l is
en0>
Sc-o
cs£1en"0)<u&Cu
1CMOi_UX)s3C
"c3Sen
<u•sO
U3Q
g
|D
G1
VIo
00
"ioo3u•sc3ienU
'ST3
WOCn
segr
egat
ii
cu
1a-u
Eu u
J*J3 «
Uu
1CSoU
u5 .61•5*3<u rt1y sc c§ u.2 oo"5, .5§ «8 S•- "S$ 1c c§ 21.1a s<u o.3-8E ^If1 I1 |c §S >
^1•aa sJ3 OH ^
"TJOO(N
g
M
>nO
T3COpaSHen
J2"c3t/3
U•sen
£(4-1enIU
11*- 3o o-S «3 S•° T3_ r*
IIH g1
CU JifiJ3 CH 'en
<noo(N
g
r^W^O
1.Scoo
.-§2uso
<a•o§«uopcdu
-H"3ojj
The
Tow
n pu
rcha
sed
a
V)OOf-J
1-*Co
"Ba>(73
•*"
J2"o
1u.0>•oc3
T3u322o.VI
-Co
1tn"•a1
3 of th
e st
ate
cons
titut
ion.
i£u5e*HO
0>CO
•5S**'«oD,U•ocoV)
T3
-1O
33O
euH
»oOoCN
cncd<crt_l
' se
cure
d.
r^t
"So.oo.1i
depo
sitin
g au
thor
ity w
;uco2"c33o-Uux>2.1en
(4-1O
C
o
u•Sna'iu>nfS(N
c>fi
'«OO.u•ocoen
T3Ca•oiJU
"3u<4Ho"cog
hund
red
perc
ent o
f the
;
<uJ3H
USh
£•aIt/3.5S"inOa.•Su5<4_
O
CoCoa.S•S+•>&ug
cu•su£•800•8o.en_a>
"•C'C3o8Oc•s-C
£o•si00.s
'EnOG.U•o
*rtuo
(2U
•£x
X)
"eno
amou
nt o
f fun
ds o
n de
p
"8 Ijl 'B w
3 IQ3 1< u
3)T3
£
<u
•g O U5 ' -XC ej ,«Si < HU
D
oCJ
Q
3"JS
3CU
X
O
•o£U
1CJ
U
U
Eoc
2
Man
agem
ent
shou
•aU
UcoH
Uco3
4i
t-i
3.£>
en"
8
S*0,
§
SU
ii$
U
adva
nce
syste
m.
Man
agem
reim
burs
emen
t or
o_*-
00c
go.enU•S
'3
shou
ld c
onsid
er r
e
•
0.
Also
, pr
oced
ures
sho
uld
oin"
o
ooo"s
SU
•h*>
1U
U
Oen
I8U
1CX
impl
emen
ted
to im
2"3
redi
t car
d di
sbur
sem
ents
sho
trans
actio
ns.
All
c valid
invo
ices
.be
doc
umen
ted
by
ooQ
uo
On
G
h.<2
inve
stig
ate
poss
ible
rea
sons
2o•a
1Ue
UgoE-
u^SUCJ3
T3U
O
11T3iCOCO
_O
the
incr
easi
ng g
aslo
ss.
oCJ
Q
3"
3(X
>.O
UenU
Id
cons
ider
m
odify
ing
th
3O•sgoHi>£
0co
en
"H
e co
mpl
ete
and
accu
rate
rec
o
1goenU
•ooCJoa.
T3Uts
JU
"oCJ
COU
S•oUsCO
£3
1 .+3 00
C
are
mai
ntai
ned
onan
d fin
es o
utst
andi
o.
J3
en•o1oCJ
o
11oHU
H
CfH
••-•
aOj)
Uo.
hurr
ican
e, t
he s
ioi3oooo
incr
ease
d to
$4
situ
atio
n.
>>CJC4>S?U
U
U6
nece
ssita
ted
by
•au•oUU
3enUU>.2"a.£U
S
mad
e av
aila
ble
CO
3*O
'i3
1U
1<u5
CO
ETexen<L>J do
cum
enta
tion.
18
MS
O
llo s
i-•o c'
X) Oe &3 O
f 'i1?
l
ii eo x 5b- c — i-— ^ -2 §S -S -1 8w U. H /-^
;— UJ
oo(N
y s
-JS
oofN
00
O
rnts
edo
TfOOcs
QHoO
T3 C4J O
'
q o< U
.£-o
*£
I?< 3
*JCfl
5oDO5^3
U,O
OH
>- o•- Si'C g•o SS §'c "^m ^
leof
Cur
nrr
ectiv
e Am
mar
y Sc
hedu
lan
d C
o
3
i— >
cn"j_
X)£uQ•OuT3CU
£3u><
u
8 '•£ .x1. cj eoi < Hen0>
u
.ScisV-.Oc_o
_Q"EuenUQ
U en53 u£ >*<s ^S o.
£
purc
hasi
ng a
for t
he T
own
e
2 u.uc '^« S_> u'5o ,tsu 0>
e§2 S3 13o -3•^ oc *.2 3S £u uT3 00'3 J2U a
ty m
anne
rfin
anci
alta
tion
in a
tim
ella
nage
men
t in
E *O :>.!•£
— T3
1|C ^
13 «U _O
accu
rat
coul
d 1
S.t=
||
2 S
ob,c
£c.2'w'3u•o
jg
c2en
T3O
nd a
ccur
ate
rec
C3
"H.ou
J2*-•
does
no
c
s2(U
JSH
•dV
'Su c•c '32 £§•2•S g1
en ' 3
S =e ^R 2
liI §|l
St-."! 3.ti «en CO 4>
& oV 4-1
"2 ^!§•2 oen >3 4id -0
enU
econ
cile
d
1en
ij5'S13c/)
_U(-1
rece
ival
^3
S
1(^
; on
a m
onth
ly 1
3
831c8>-4J00
T3
1C
00u
2
>
.£•o
T3
i1)
•1(U
.£>
"SC l>"": c
£ |
1 *.£
ty oO _Q
tn -a| §.1 8s i-.2 m
moo
4o
oo(S
oo
*•?o
KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTS
C. Burton Kolder, CPA*Russell F. Champagne, CPA*Victor R. Slaven, CPA'P. Troy Courville, CPA*Gerald A, Thtbodeaux. Jr.. CPA*Robert S. Carter, CPA*Arthur R. Mixon, CPA
OFFICES
Tynes E. Mixon, Jr., CPAAllen J. LaBry, CPAAlbert R. Leger, CPA,PFS.CSA*Harry J. Clostio, CPAPenny Angelle Scruggins, CPAChristine L. Cousin, CPAMary T. Thibodeaux, CPAJames R. Roy, CPARobert J. Metz, CPAKetlyM. Doucet, CPAKenneth J. Radial, CPACheryl L. Bartley, CPA, CVAMandy B. Self. CPAChris E. Bilski, CPA
183 South Beadle Rd. 113 East Bridge St.Lafayette, LA 70508 Breaux Bridge. LA 70517Phone (337) 232-4141 Phone (337) 332-4020Fax (337) 232-8660 Fax (337) 332-2867
133 East Waddil 1234 David DR. Ste 105Marksvllle, LA 71351 Morgan City, LA 70380Phone {318) 253-9252 Phone (965) 384-2020Fax (318) 253-8681 Fax (985) 384-3020
408 West Cotton Street 332 West Sixth AvenueVitte Platte, LA 70586 Oberiin, LA 70655Phone (337) 363-2792 Phone (337) 639-4737Fax (337) 363-3049 Fax (337) 639-4568
200 South Main StreetAbbeville, LA 70510Phone (337) 893-7944Fax (337) 893-7946
450 East Main StreetNew Iberia. LA 70560
Phone (337) 367-9204Fax (337) 367-9208
Retired:Conrad 0. Chapman, CPA* 2006
MANAGEMENT LETTERWEBSITE;
WWW.KCSRCPAS.COM
' A Professional Accounting Corporation
The Honorable Wilda Chamberlain, Mayorand Members of the Board of Aldermen
Town of Mamou, Louisiana
We have completed our audit of the basic financial statements of the Town of Mamou, Louisiana for the yearended December 31,2005, and submit the following recommendations for your consideration:
(1) The Town has two credit cards. In the period following the hurricane, the spendinglimit for one of the credit cards was increased to $40,000 to accommodate theincrease in spending necessitated by the emergency situation. The credit card ismade available to employees as needed. The Town also at times pays the creditcard bill without sufficient supporting documentation. Management should notmake the credit card available to employees, but rather use a reimbursement oradvance system. Management should consider reducing the spending limit from$40,000 to $ 15,000. Also, procedures should be implemented to improve controlsover credit card transactions. All credit card disbursements should be documentedby valid invoices.
(2) The Town has an increasing gas loss. This loss has been continuously increasingeach year. The Town should investigate possible reasons for the increasing gas lossand attempt to reduce the loss.
(3) The Town should evaluate the procedures for recording and collecting of policefines. Consideration should be given to modifying these procedures to ensure thatcomplete and accurate records are maintained on tickets issued, fines collected, andfines outstanding.
In conclusion, we express our appreciation to you and your staff, particularly to your office staff, for thecourtesies and assistance rendered to us during the performance of our audit. Should you have any questions or needassistance in implementing our recommendations, please feel free to contact us.
Kolder, Champagne, Slaven & Company, LLCCertified Public Accountants
Ville Platte, LouisianaJune 2,2006
Member of:AMERICAN INSTITUTE OFCERTIFIED PUBLIC ACCOUNTANTS
Member of:SOCIETY OF LOUISIANA
CERTIFIED PUBLIC ACCOUNTANTS