village of grosse tete - louisianaapp1.lla.la.gov/publicreports.nsf/82f52cf87e70409d...village of...

0 ' V,

Village of Grosse Tete, Louisiana

Annual Financial Report

Year Ended December 31,2009

^jcument. Acopy ofthe report has been submittea . the entity and other appropriate public officials. Tho report is available for public inspection at the Baton .^ouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court.

•"'.slaase D; 7/^//^ n

Table of Contents

Page

INDEPENDENT AUDITOR'S REPORT ] . 2

Required Supplemental Information (Unaudited)

MANAGEMENT'S DISCUSSION AND ANALYSIS 3-13

Basic Financial Statements Government - Wide Financial Statements (GWFS):

Statement of Net Assets 14 Statement of Activities 15

Fund Financial Statements: Governmental Activities -

Balance Sheet 16 Reconciliation of the Balance Sheet to the Statement of Net Assets 17 Statement of Revenues, Expenditures and Changes in Fund Balance 18 Reconciliation ofthe Statement of Revenues, Expenditures and

Changes in Fund Balance to tlie Statement of Activities 19 Business-type activities (Proprietary Fund Water System) -

Statement of Net Assets 20 Statement of Revenues, Expenses and Changes in Net Assets 21 Statement of Cash Flows 22

Notes to the Financial Statements 23 - 38

Required Supplementary Information (Unaudited) Budgetary' Comparison Schedules:

General Fund 39 Special Revenue Fimd - Fire Protection 40

Other Supplementar>' Information

Schedule of Per Diem and Paid to Mayor and Board Members 41

Reports Required by Government Auditing Standards

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCLAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS 42 - 43

Schedule of Findings and Responses 44 - 45 Schedule of Findings and Responses - Prior Year 46

W. Kathleen Beard Certified Public Accountant

I0I9I Bueche Rd. - Erwinville, LA 70729 (225)627-4537 - FAX (225) 627-4584

INDEPENDENT AUDITOR'S REPORT

To the Honorable Mayor and Members of the Board of Aldermen


1 have audited the accompanying financial statements ofthe govermnental activities, the business-type activities, and each major fund ofthe Village of Grosse Tete, Louisiana, as of and for the year ended December 31,2009, which collectively comprise the Village's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Village's management. My responsibility h to express an opinion on these fmancial statements based on my audit. The prior year summarized comparative information has been derived from the Village's 2008 financial statements, and in my report dated July 13, 2009 I expressed an unqualified opinions on the respective financial statements of the governmental activities, the business-type activities, and each major fund.

I conducted my audit in accordance with auditing standards generally accepted in the United States of America, and the standards apphcable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Ihose standards require that I plan and perform the audit to obtain, reasonable assurance about whether the fmancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in die financial stalemenis. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall fmancial statement presentation. I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the respective fmancial position ofthe govemmental activities, business-type activities and each major ftind ofthe Village of Grosse Tele, Louisiana as of December 31, 2009, and the respective changes in financial position and cash flows tliereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, I have also issued my report dated July 7, 2010 on my consideration ofthe Village of Grosse Tcte's intemal control over financial reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements. The purpose of that report is to describe the scope of my testing of intemal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the intemal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered m assessing the results of my audit.

Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis on pages 3 through 13 and the Budgetary Comparison Schedule on pages 39 through 40 be presented to supplement the basic fmancial statements. Such information, although not a pait ofthe basic financial statements, is required by the Govemment Accounting Standards Board, who considers

1

it to be an essential part of financial reporting for placing the basic fmancial statements in an appropriate operational, economic, or historical context. I have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to my inquiries, the basic fmancial statements, and other knowledge I obtained during my audit ofthe basic fmancial statements. I do not express anopinion or provide any assurance on the information because the limited procedures do not provide me with sufficient evidence to express an opinion or provide any assurance.

Certified Public Accotmtant July 7, 2010

REQUIRED SLTPLEMENTARY INFORMATION (UNAUDITED)

Village of Grosse Tete Management's Discussion and Analysis (Unaudited)

December 31, 2009

We offerreaders of the Village of Grosse Tate's financial statements this narrative overview and analysis of the financial activities of the Village of Grosse Tete for the fiscal year ended December 31, 2009.

The Management's Discussion and Analysis (MD&A) is an element ofthe new reporting model adopted by the Governmental Accounting Standards Board (GASB) in their Statement No. 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments issued June 1999.

Financia! Highlights

Key financial highlights for the 2009 fiscal year include the following:

The assets of the Village of Grosse Tete exceeded its liabilities at the close of the most recent fiscal year by $1,626,063 (net assets). Of this amount, approximately $ 534,257 (unrestricted net assets) may be used to meet the government's obligations to citizens and creditors-

The totalnet assets ofthe Village of Grosse Tete increased by $ 152,866 for the year ended December 31, 2009 - net assets ofthe governmental activities increased by $144,309, and net assets of business-type activities increased by $8,557.

As ofthe close of the current fiscal year, the Village of Grosse Tete's governmental funds reported a combined ending fund balance of $804,963. and decrease of $17,999 in comparison with the prior fiscal year Of this amount, $ 692,351 was unreserved, undesignated, and available for spending and $112,612 was restricted for fire protection.

At the end of the current fiscal year, unreserved, undesignated fund balance for the General Fund was $692,351.

The Village of Grosse Tete's total debt decreased $137,593 during the fiscal year, due to a combination of payments on the long-term leases of a fire truck and the purchase of a fire truck through a note payable.


December 31,2009

Overview of the Financial Statemente

This MD&A is intended to serve as an introduction to the Village of Grosse Tete's basic financial statements. The Village of Grosse Tete's basic financial statements comprise three components: (1) government-wide financia! statements, (2) fund financial statements, and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements The govemment-wide financial statements are designed to provide readers with a broad overview of the Village of Grosse Tete's finances, in a manner similar to a private-sector business.

The Statement of Net Assets presents infomnation on all of the Village of Grosse Tete's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Village of Grosse Tete is improving or deteriorating.

The Statement of Activities presents information showing how the Village of Grosse Tete's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless ofthe timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result In cash flows in future fiscal periods (e.g., uncollected taxes and eamed but unused vacation leave).

The Statement of Net Assets and the Statement of Activities distinguish functions ofthe Village of Grosse Tete that are principally supported by taxes, intergovernmental revenues, and charges for services (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The Village of Grosse Tete's govemmental activities include general govemment, public safety, highways and streets, health, and culture and recreation. The business-type activities of the Village of Grosse Tete include water and sewerage utility service.

The government-wide financial statements include the Village of Grosse Tete itself, which is the primary government. The village does not have any component units.

Fund Financial Statements. A fund is a grouping of related accounts that Is used to maintain control over resources that have been segregated for specific activities or objectives. The Village of Grosse Tete, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Village of Grosse Tete can be divided into two categories: governmental funds and proprietary funds.


December 31, 2009

Fund Financial Statements (Continued):

Governmental Funds: Governmental fijnds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, govemmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources at the end of the fiscal year. Such infomiation may be useful in evaluafing the Village of Grosse Tete's near-tenn financing requirements.

Because the focus of governmental funds is narrower than that ofthe government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the Village of Grosse Tete's near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance^ provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The Village of Grosse Tete maintains two individual governmental funds. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund, and for the Volunteer Fire Department Special Revenue Fund, both of which are considered to be major funds.

The Village of Grosse Tete adopts an annual appropriated budget for its General Fund and Special Revenue. Budgetary comparison schedules have been provided to demonstrate compliance with these budgets.

Proprietary Funds: The Village of Grosse Tete maintains a proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Village of Grosse Tete uses an enterprise fund to account for its water and sewer services.

Proprietary funds provide the same type of informafion as the govemment-wide financial statements, only in more detail. Proprietary fund financial statements provide separate information for the water and sewerage operations, which is considered to be a major fund of the Village of Grosse Tete.

Notes to the basic financial statements: The notes provide additional infomiation that is essential to a full understanding ofthe data provided in the govemment-wide and fund financial statements.

Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary infonnafion conceming the Village of Grosse Tete's compliance with budgets for its major funds.


December 31, 2009

Financial Analysis of Government-wide Activities

As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the Village of Grosse Tete, assets exceed liabilities by $1,626.063 at the close of the most recent fiscal year.

Village of Grosse Tete's Net Assets December 31, 2009 and 2008

Governmental Activities

Business Type

Activities Total 2008

Assets: Current and Other Assets

Capital Assets (Net)

1

Total Assets

Uabilities: Current and other Liabilities Long-terrr) liabilities

Total Liabtiities

Net Assets: Invested in capital assets, net of

related debt Restricted for Fire Protection Unrestricted

Total net assets

$900,763

670,551

1,571.314

127,074

179.665

306.739

459.611 112,612 692,351

$1,264,574

$20,103

519,583

539,686

178,197

0

178,197

519,583 0

(158,094)

$361,489

$920,866

1,190.134

2.111,000

305,271 179 665

484.936

979,194 112,612 534.257

$1,626,063

$930,174

827.987

1,758,161

220.653 64,311

284,964

754,640 161,099 557,458

$1,473,197

The balance of unrestricted net assets of $534,257 is used to meet the Village of Grosse Tete's ongoing obligations to citizens and creditors.

At the end of the current fiscal year, the Village of Grosse Tete is able to report positive balances in total net assets, both for the government as a whole, as well as for its separate governmental and business-type activities.


December 31, 2009

The Village of Grosse Tete's net assets increased by $152,866 during the current fiscal year as detailed by the following:

Village of Grosse Tete's changes in Net Assets

Revenues

Program revenues:

Charges for Services

Grants and Cont;ibutions

General revenues:

Intergovernmental

Taxes

Licenses and pernnits

Investrrtent Earnings

Reimbunsement Grant

Donations

Miscailaneous

Gain/Loss on Sate of Assets

Total revenues

Expenses

Genera/ Govermnent

Public Safety

Highways/Streets

', Health

Culture/Recreation

Interest on Long-term debt

Water and Sewer

Total Expenses

Govemmental

Activities

$42,229

80.588

735.103

39,213

49,006

10,948

50,317

30,000

7,186

8,000

1,052,590

205.642

257,981

275.516

0

39,654

10,488

0

789.281

Bus]ness-I}ke

AcUvities

5116,845

0

0

0

0

181

0

0

1,000

0

118.026

0

0

0

0

0

0

228.459

228.469

Totol

$159,074

80.588

735,103

39,213

49,006

11.129

50,317

30.000

8,186

8,000

1,170.616

205,643

257,981

275.516

0

39,654

10,488

228.469

1.017,750

2008

$147,455

185,356

646,323

49,687

40,585

16,230

0

0

13.164

0

1,098.800

237.197

190.948

253,547

2,684

19,565

5,662

178.736

888.339

Other Financing Sources (uses)

Transfers In/Out (119,000) 119.000

Increase (decrease) in net assets 144.309

Net Assets at the beginning of year 1,120,265

Net Assets at the end of year $1,264.574

8.557

352,932

152.366

1.473,197

$361,489 $1,626,063

210.451

1,262,736

11,473.197

! Village of Grosse Tete Management's Discussion and Analysis (Unaudited)

December 31, 2009

Governmental Activities:

Revenues for the Village of Grosse Tete's governmental activities for the year ended December 31, 2009 were $ 1,052,590 compared to $ 914,832 for the year ended December 31,2008.

General Revenues;

Taxes

Licenses, permits, and fines Intergovernmental Grants & Donations Investment Eamings Miscellaneous Gain on Sale

Total general revenues

Special Revenue Revenues:

Taxes Intergovemmental Grants Investment Eamings Miscellaneous Gain on Sale

Total special revenues

Amount

$39,213 90,314

605,016 80,317

8,262 6,178

0

$829,300

Amount

$0 131,007 80.588

2,686 1.009 8,000

$223,290

Percentaae

5% 1 1 % 73%

9% 1% 1% 0%

100%

Percentage

0% 58% 35%

2% 1%

_4%_

100%

In total, general revenues increased. General revenues, specifically sales tax (73%) are the largest component of revenues. Sales taxes increased by $89,700.

8


December 31, 2009

Governmental Activities (Continued):

The cost of all governmental activities this year was $ 789,282, an increase of $79,276.

The Village of Grosse Tete's largest programs are general government, public safety, and highways and streets. The schedule below shows the expenses generated by governmental activities:

General govemment Public safety Highways and streets Other

Total governmental activities expenditures

Amount 3205.642 257,981 275.516

50.142

$789,282

Percentaqe 26% 33% 34% 7%

100%

Business-type Activities:

The Business-Type Activities of the Village are those for which the Village charges a fee to customers to help cover all or most of the cost of certain services its provides. The Village's water and sewer departments are reported here.

Charges for services for the Village of Grosse Tete's business-type activities were $116,845, an increase of $789.

The costs of these activities were $228,469, an increase of $49,733. Salaries and benefits increased by $4,012 and water expenses increased by 16,156. Professional sen/ices also increased by 9,571 and tools and supplies increased by 10,018.


December 31, 2009

Financial Analysis of the Village of Grosse Tete's Funds

Governmental Funds

As noted earlier, the Village of Grosse Tete uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

The focus of the Village of Grosse Tete's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Village of Grosse Tete's financing requirements. In particular, unreserved fund balance may sen/e as a useful measure of a Village's net resources available for spending at the end of the fiscal year.

• As of the close of the current ifiscal year, the Village of Grosse Tete's governmental funds reported a combined ending balance of $804,963, a decrease of $17,999 in comparison with the prior fiscal year. Of this amount, $692,351 was unrestricted, undesignated and available for spending.

e The General Fund is the chief operating fund of the Village of Grosse Tete. At the end of the current fiscal year, unreserved fund balance of the General fund was $692,351. The total (undesignated) is available for spending at the Village Board's discretion. The fund balance ofthe Village of Grosse Tete's General Fund increased by $30,489.

• The fund entitled Special Revenue - Fire Protection Fund accounts for fire and emergency activities. At the ^nd of the cun-ent fiscal year, the balance ofthe fund was $112,612. a decrease of $48,487. The key factor in this was capital outlay of $325,895 and a loan taken out for the purchase of a truck on 167,486.

Proprietary Funds

• Water and Sewer net assets increased by $8,557. The fund incurred an operating loss for the year, but saw increases in transfers of $25,178.

10

Village of Grosse Tete Management's discussion and Analysis (Unaudited)

December 31, 2009

General Fund Budgetary Highligfi|ts

The budget policy ofthe Village of Grosse Tete complies with state law, as amended, and as set forth in Louisiana Revised Statutes title 39, Chapter 9, Louisiana Local government budget Act (LSA-R.S. 39:1301 et seq.).

The original budget for the General Fund of the Village of Grosse Tete was adopted in December 2008. Some amendments were made. Differences between the budget and the actual results ofthe General Fund are as follows:

Revenues

Tax revenues were $23,067 less than the budget estimate.

Licenses, pernnits, and fines were $11,686 less than budget estimate.

Intergovernmental revenues were $56,731 more than budget estimate.

Grants, donations and reimbursements were $44,683 less than budget estimate

Expenditures

Capital outlays were $187,013 less than the budget estimate.

Current expenditures were $31,091 less than the amount budgeted.

Transfers out were $59,000 more than the budget estimate.

11


December 31, 2009

Capital Assets

The Village's investment in capital assets for its governmental and business type activities as of Decerhber 31, 2009 amounts to $1,190,134 (net of accumulated depreciation). This investment in capita! assets includes buildings and improvements; office equipment and furniture; machinery and equipment; vehicles; park improvements; vrateriines and hydrants; Fire Department vehicles and equipment; sewer system equipment; and water system equipment. The Village has not included infrastructure assets acquired before December 31, 2004. The Village has the option of inclusion of infrastructure assets acquired before December 31, 2004. The Village intends to not to implement infrastructure improvements acquired before December 31, 2004.

Additional information on the Village's capital assets can be found in Note 5 on page 33 and 34 of this financial report.

Village of Grosse Tete's Capital Assets (net of depreciation)


Business-Type

Activities Total 2008

Land Construction in progress Building and improvements Office equipment and furniture Machinery and equipment Vehicles

Park Waterlines and hydrants Sidewall^ and Street improvements Fire Dept. vehicles and equipment Sev/er system Water system

$56,800 17.967 27,015

5,690 16,845 21,857

10,225 27,900

108,256

377,996 --

S670,551

$1,000 22,401

-, --

-

-

-

" 290.604

205,578

$519,583

$57,800 40.368 27.015

5.690 16,845 21,857

10.225 27,900

108,256

377.996 290,604 205,578

51,190,134

S 0 24,531 25,990

6,661 15.899 14,882

7,204 32,200

101,243

160.070 153,241 286,064

$327,986

12


December 31, 2009

Major capita! asset events during the fiscal year included the following:

Various leasehold improvements $10,795 Purchase of fire truck $217,486 Radios for fire department $88,127 Land on Cedar Street $30,000 Purchase of Chevy truck $18,225 Purchase of Culverts $12,596 Water system improvements;$74,248

Lonq4erm debt: At the end of the 'current fiscal year, the Village of Grosse Tete had total debt outstanding of $210,940. The Village of Grosse Tete has no general bonded debt outstanding the following table summarizes the lease and note payable outstanding at December 31, 2009.

Capital Lease Obligation-Ranger Note Payable-F650

Total Debt

Amount Due Within One

Year

9,479 21.796

$ 31,275

Long-Term Debt

54,832 124,833

$ 179.665 $

Total Due

64.311 146.629

210,940

For additional information regarding capital assets and long-term debt, see the notes to the basic financial statements on pages 34-35.

Requests for Information

This financial report is designed to provide a general overview ofthe Village of Grosse Tete's finances for all those with an interest in the Village of Grosse Tete's finances. Questions concerning any ofthe Information provided In this report or requests for additional financial information should be addressed to the Clerk of the Village of Grosse Tete, P.O. Box 98, Grosse Tete, La. 70740-0098, or by calling (225)648-2131.

13

BASIC FLNANCIAL STATEMENTS

Village of Grosse Tete, Louisiana statement of Net Assets

December 31, 2009 with comparative summarized totals for 2008

Primary Government

ASSETS:

Cash and cash equivalents Investment in LAMP Investments in Certificates of Deposit Accounts receivable (net of allowance for

uncollectible) Taxes Intergovernmental Accounts

Accrued Interest Due from other funds Prepaids Property, pJant and equipment

Non-depfQciable Depreciable, net of accumulated depreciation

Total assets

UABIUTIES: Bank overdraft Accounts payable Accrued liabilities Due to other funds Due to other govemments Due to ItjerviUe Firefighters Assn Deferred revenue Current portion long term debt -

Capital lease Note payable

Long-term debt -Capital lease Note payable


S 131,719 101.937 422,426

7,457 50,244

1,592 1.495

166,866 17.024

74,767 595.784

1,571,314

0 21,211 9.608

0 596

5,885 58,500

9,479 21,796

54,832 124,833

Business-type Activities

$ 7 $ 0

7,815

0 0

12,259 22

0 0

23,401 496,182

539,686

2.746 6.523 2,061

166,867 0 0 0

0 0

0 0

2009 Totals

131.726 S 101.937 430,241

7.457 50,244 13,851 1,517

166,866 17,024

98,168 1.091.966

2,111.000

2,746 27,734 11,669

166,867 596

5,855 58,500

9.479 21,796

54,832 124.833

2008 Totais

162.701 101,554 419,246

11,094 62,680 11,121 1,762

147,537 12.479

24,531 803,456

1.758.161

0 21,975 18,605

147,537 0 0

23,500

9.036 64,311

0 0

Total liabiliises 306,739 178.197 484.936 284,964

NET ASSETS: Invested in capital assets, net of related debt Restricted for fire protection Unrestricted

Total net assets

459.611 112,612 692,352

1.264,574 $

519,583 979,194 0 112.612

(158,094) 534,258

361,489 $ 1.626,063

754,640 161.099 557,458

$ 1,473,197

The accompanying notes to the financial statements are an integral part of this statement

14

a

r-' CO CN

.--~. • * r--o> t o

5

r^ o> r-.

9 cv

s t o OJ

i n "

S - t

• —

<N t o <D i n • — •

cn t ^

TO to" ID i n

c n

i .s £ B la o

O 0)

o

— o

If c

I s i n

00 O

S

t o o Qi t n

CM

§ f CJJ c S

i

O O O O O

5 i r i

1 to tn

to cr. tn

CD rO

-—-

CO CO

o

1 ^ 1 ID

1 CD

a

CO o o o o CO • t cd 1 ^

m o o o o i o

s

i n CO

1

in CO

CM t o

1 < ^

1 S 1 1 t ^

1 .—•

s 1 p. := ! ^ I P:

s <tt c

X UJ

t o T- CO • * DO 1 -t o O) i n m ' f--" m" o m r^ r^ CM CM

° s s <n -^f cn o ' CO -r-

; CM • CO

(N cn M

i ^ 1

cn (0 ' 0 - .

to ' CM CM

r o

^ n i

^

ii It It M II ri h t[

O

m

s t o

CJ> (D • 0 ;

CO

^

m o

CM

t f i

•O-

fe O) i n

v >

T— i n h-h-

o T - "

(1 II

II II II II

ii FI 11 '{

jl

11 II II

ii 11 11

II II II

i( '1

M

h- »n CO o o o o CO og CM CO tO^ iO CO CM o i d to CD" • ^ •V - ^ T-

<0

CO CD CO cn o o r^ T- 5 O CM Q g » -CM o - ^ T- S 5 n

CJ) c n CO Tf ;5? cO 1 - O K

CO i n

o g o o g o o

o

CM

CM CD CM

, t o 1 f^ f • *

i n r -C0 cn °o ^. CM' ro' t n 1 ^

i n o> CD CM'

i s ii ; § ii

CO

CM

CO

8 o ?

to o

CO

CJl

o '

§ oo'

o

s o ' CO

CO o "

g f^'

§ CTT

(O

o

CO

8 5

i n

o ' CM

i n

CM

f l i n >-

IS m

c fc

Village of Grosse Teto, Louisiana Balance Sheet

Govemmental Funds December 31, 2009 with comparative summarized totals for 2008

ASSETS Cash and cash equivalents -

Cash on hand and in banks Investments in LAMP

Investment in Certificates of Deposit Receivables (net) Taxes receivable Accrued Interest receivable Due from other funds Due from other governments Prepaid expenses

Total Assets

LIABIUTIES AND FUND BALANCES Accounts payable Accnjed liabilities Due to other funds Due to other governments Due to Itjerville Firefighters Assn. Defen-ed revenue

Total Liabilities

Fund Balances -Reserved for fire protection Unreserved

Total Fund Balances

Total Liabilities and Fund Balances

General Fund

113,154 101,937 306.438 1,592 7,457 1,173

195,853 41.679 11,120

$780,405

20,711 8.842

0 0 0

58,500

88,064

0 692.351

692.351

780,405

Special Revenue

Fire Protection Fund

S 18.565 $ 0

115,988 0 0

322 0

8.565 5,904

$149,345

$ 500 S 765

28,987 596

5.885 0

36,733

112.612 0

112,612

$ 149,345 $

2009 Total

131.719 $ 101,937 422,426

1.592 7,457 1,495

195,853 50,245 17,024

$929,750

21,211 S 9.608 28,987

596 5,885 58,500

124,786

112.612 692,351

804,963

929,750 $

2008

126,667 101,554 411,614 4,095 11,094 1,738

177,088 62,680 11,778

$908,308

21,600 10.695 29.551

0 0

23,500

85,346

161,099 661.863

822,962

908,308

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

16

^

Village of Grosse Tete, Louisiana Reconciliation of the Balance Sheet to the Statement of Net Assets

Governmental Funds December 31, 2009 with comparative summarized totafs for 2008

2009 2008

Fund Balances -total governmental funds $ 804,963 $ 822,962

Amounts reported for govemmental activities int the State of Net Assets are different because:

Capital assets used in governmental activities are not financial resouces therefore are not reported in governmental funds

Govemmental capital assets 2,012,076 1.600,059 Less: accumulated depreciation (1,341.525) (1,229,409)

670,551 370.650

Capita! leases and note payable (210,940) (73,347)

Nel Assets of Governmental Funds $ 1,264,574 $ 1,120,265


17

Village of Grosse Tete. Louisiana Statement of Revenues, Expenditures and Changes In Fund Balance

Goverrenontal Funds

Year ended December 31, 2009 with comparative summarized totals for 2008

REVENUES:

Taxes

License and permits

tntergovemmental revenue

Grants

Fines and forfeitures

interest income

Sale of fij«d assets

MiscallaneoLis

Donations

FEMA reimbursements

Total revenues

EXPENDITURES;

Current -

General governmertt

Public safety

Public vnorKs - Highways and streets

Health

Culture & recreation

Capita) Outlay -

General eovernnient

Public safety

Public wotlis

Culture S recreation

Debt Service •

Principa.

Interest

Total expenditures

Excess Reveriues Over (Under) Expenditures

OTHER FINANCING SOURCES (USES): Proceeds rram loan financing Transfers )a'(Oui)

Total Other Financing Sources (Uses)

Net Change in Fund Balances

FUND BAUNCE. Beginning of Year

End of Year

General

Fund

$39,213

49,006

605,016

0

41,303 8,262

0 6,177

30,000

50,317

Sp&c\al Revenue

Fire Protection

Fund

$0

0

131,007

80.588

0

2,686 8,000

1,009

0

0

Total 2000

829.300

$39,213

49,006

736.023

80,588

41,308

t0,948 8.000

7,186

30,000

50.317

, ,

$49,687

40,585

646.323

122,325

26,649

15,989 0

17,914 0

0 ^ „ „

223.290 1.052,590 919,472

xixtxxs:i :5;s:t:s:=»a:

The accompanying notes to the financial statements are an Integral part of this statement.

18

199,677

67,725

263,005

0

32.552

62,192

3,450 36,617

14,593

0

0

679,811

149,489

0

(119,000)

(119,000)

30,489

661.362

$692,351

0

78,571

0

0

0

0

320,313 0 0

29.893

10,488

439,265

(215,975)

167,486

0

167,466

(48.489)

161,101

$112,612

199,677

146.296

263,005

0

32,552

52.192

323,763 36,617

14.593

29,893

10,488

1,119,076

(66,466)

167,486

(119.000)

48,486

(18.000)

822,963

$804,963

231.804

127,270

239.131

2,684

14,142

0 158.108 25.141

7,782

36,090

5,652

847,814

71.658

0

(93,822)

(93,822)

(22,164)

845,126

5822,963

Village of Grosse Tete, Louisiana Reconciliation ofthe Statement of Revenues, Expenditures and

Changes in Fund Balances to the Statement of Activities Govemmental Funds

Year Ended December 31, 2009 with comparative summarized totais for 2008

2009 2008

Net Change in Fund Balances - total governmental funds $ (18,000) $ (22,164)

Amounts reported for govemmental actwitles in Statement of Net Assets are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is depreciated over their estimated useful lives:

Expenditures for capital assets 437.165 191,031 Less current year depreciation (137,264) (88,910)

Gain/(Loss) on disposal of capital assets (cost less accumulated depr)

299,901 102.121

The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to govemmental funds, while repayment of the principal of long-term debt consumes the current financial resources of govemmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effects of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.

Issuance of Long Term Debt - Note Payable (167.486) Repayment of principal of Long Term Debt 29,893 36,090

Change in Net Assets of Governmental Funds $ 144,308 $ 116,047

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

19

Village of Grosse Tete, Louisiana Statement of Net Assets

Proprietary Funds For the Year Ended December 31, 2009 w\th comparative summarized totals for 2008

- Business-type ActWities -Enterprise Fund - Utility System

ASSETS 2009 2008

Current assets -Cash and cash equivalents Accounts receivable (net of allowance for uncollectibles of

$10,000 for 2009 and 2008) Accmed interest receivable Prepaid expenses

Total Current Assets

7 $

12,259 22

0

12,288

36,034

7.026 24

701

43.785

Plant and Equipment, at cost, net of accumulated depreciation of $313,658 for 2009and $283,779 for 2008 519,583 457,337

Other assets -Investments - Certificate of Deposit

Total Assets

7,815

539,686 $

7.632

508,754

LIABILITIES Current liabilities -

Bank overdraft Accounts payable Accrued liabilities Due to other funds

Total Current Liabitities

Total Liabilities

NET ASSETS

2.746 S 6,523 2,081

166,867

178,197

178,197

374 7,910

147,538

155,822

155,822

Invested in capital assets, net of related debt Unrestricted

Total Net Assets

519,583 (158.094)

361,489 $

457,337 (104.405)

362,932


20

106,513 950

1.098 8,284

S 106,907 1,250 1,865 6,034

Village of Grosse Tete, Louisiana Statement of Revenues, Expenses and Changes in Net Assets

Proprietary Fund Year ended December 31, 2009 with comparative summarized totals for 2008

- Business-type Activities -Enterprise Fund - Utility System

2009 2008 OPERATING REVENUES Charges for services $ Connection/reconnection fees Penalty charges Miscellaneous operating income

Total Operating Revenue 116,845 116,056

OPERATING EXPENSES Salaries and benefits Depreciation Bad Debts Insurance and bonds Miscellaneous Dues and subscriptions Postage, printing and office supplies Professional services Health services Repairs and maintenance Sewer expenses Tools and supplies Utilities Water purchases - Water District 4

Total Operating Expense

Operating Income (Loss)

NON-OPERATING REVENUES (EXPENSES) Interest income Donations State grants

Total Nonoperating Revenues (Expenses)

Income (Loss) before transfers

Transfers in - General fund

Change in net assets

Total net assets, beginning of year

Total net assets, end of year $


21

58.083 29.880

0 4,118 740 844 458

21,174 922

7,290 8,594 15,274 354

80,740

228,469

(111.624)

181 1,000

0

1,181

(110,443)

119.000

8,557

352.932

361,489 $

54,071 23,089 8.000 1.100 201 -

2.121 11,603

0 3,508 4,039 5,256 1,164

64,584

178,736

(62,680)

241 0

63.031

63,272

592

93,822

94.414

258,518

352.932

Village of Grosse Tete, Louisiana Statement of Cash Flows

Proprietary Fund Year ended December 31, 2009 with comparative summarized totals for 2008

- Business-type Activities -Enterprise Fund - Utility System

CASH FL(pWS FROM OPERATING ACTIVITIES: Cash recjeived from customers Cash payments for goods and services Cash payments for salaries and benefits

Net Cash Provided by (Used for) Operating Activities

CASH FLpWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfer^ in from general fund

Net Cash Provided by (Used for) Noncapital financing activities

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets State Grgnt

Net Casf Provided by (Used for) Capital and Related Financing Activities

CASH FL(ftWS FROM INVESTING ACTIVITIES: Other

Net Ca^h Provided by (Used for) Investing Activities

INCREASE (DECREASE) IN CASH

CASH ANp CASH EQUIVALENTS, BEGINNING

CASH AND CASH EQUIVALENTS, ENDING

RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDEp BY (USED FOR) OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income to net cash

provided by (used for) operating activities: Depreipiation Bad d to expense Net Changes in Assets and Liabilities -(Increase) decrease in accounts receivable - customers (Increase) decrease in prepaid expenses Incre&se (decrease) in accounts payable Increase (decrease) in accnjed liabitities Increase (decrease) in due to other funds

Total adjustments

Net Cash provided by (used for) operating activities

The acconppanying notes to the financial statements are an integral part of this statement

22

2009 111,138 (119,702) (58,083)

S 2008 100,288 (98.366) (53.059)

(66,647) (51,137)

119,000

119,000

(91,126) 0

60,000

60,000

(43,033) 63,031

(91,126) 19,998

0

0

(38,773)

36.034

(2,739) S

255

255

29,116

6,918

36,034

(111,624) (62,680)

S

29,880 0

(5,233) 701

6,150 (5.849) 19.328

44,977

(66,647) $

23,089 8,000

9,366 383

(5,173) 1,012

(25,134)

11,543

(51,137)

Village of Grosse Tete, Louisiana Notes to the Financial Statements

' December 31, 2009

Introduction

The Village of Grosse Tete, (the Village) was incorporated and operated under the provisions of Title 33, Chapter 2, Part I ofthe Revised Statutes of Louisiana (R,S. 33:321 et seq.) commonly known as the Lawrason Act. The Village is govemed by a publicly elected mayor and three alderpersons. The Village provides general government and public safety (police and fire protection) services, maintains streets, street lighting and highways, and provides water and sewer services to its approximately 670 residents. The Village has approximately 25 employees

1. Summary of Significant Accounting Policies

The accompanying basic financial staiements ofthe Village of Grosse Tete have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to govemmental units. The Village's reporting entity applies all relevant Governmental Accounting Standards Board (GASB) pronouncements. Proprietary frmds apply Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989. unless those pronouncements conflict with or contradict GASB pronouncements, in wliich case G.ASB prevails. The accompanying basic ilnanciai statements have been prepared in conformity with GASB Statement 34. Basic financial Siatemenl.s - and Management's Discussion and Analysis -for Si ate and Load Governmeni s, issued in June (999.

Reporting Entity

The Village's basic Ilnanciai statements Include the accounts of all Village operations. For fmancial reporting purposes, in conforaiance withjGASB's Codification of Governmental Accounting and Financial Reportimj Standai'ds. and Financial Reporting Standards, the Village includes all funds that are controlled by the Village.

GASB Statement Tso. 14, The financial Reporting Entity, established criteria for determining wliich component units should be considered part of a larger govenmiental reporting entity for financial reporting purposes. Under provisions of this Statement, the municipality is considered a primary government, smce it is a special purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local govemments. As used in GASB statement No. 14, fiscally independent means that the municipality may, without the approval or consent of anotlier governmental entity, determine or modify its own budget, levy its taxes or set rates or charges, and issue bonded debt. The municipality has oversight of other component units that are, either, blended into the municipality's basic fmancial statements or discretely presented in a separate column in the govemment-wide financial statements.

Based on the aforementioned criteria, the Village of Grosse Tete has no component units.

23

Village of Gro.ssc Tele, Louisiana Notes to the Financial Statements

December 3 L 2009

1. Summary of Significant Accounting Policies (Continued)

Basic Financial Statements - Government-Wide Statements

The Village's basic fmancial statements include both government-wide (reporting the Village as a whole) and tnnd fmancial statements (reportmg |the Village's major funds). Both the govemment-wide and fund fmancial statements categorize primary activities as either govemmental or business type.

In the govemment-wide Statement of Nei Assets, the business-type column is reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The Village's nel assets are reported in three parts: invested in capital assets, net of related debt: restricted net assets; and unrestricted net assets. The Village utilizes restricted resources to finance qualifying activities.

The govemment-wide Statement of Activities reports both the gross and net cost of each ofthe Village's functions. I'he net costs by function are normally covered by general revenue.

This government-wide focus is more on the sustainability ofthe Village as an entity and the change in the Village's net assets resulting from the current year's activities.

Program revenues - Program revenues included in the column labeled Statement of Activities are derived directly from Utility System users as a f e for services; program revenues reduce the cost ofthe function to be financed from the Village's general revenues

Basic Financial Statements - Fund Financial Statements

The financial transactions of the Village are reported in individual funds in the financial statements. Each fund is accounted for by providing a sejiarate set of self-balancing accounts that comprises its assets, liabilities, reserves, fund equity, revenues and expenditures/expenses. The fiind presented in the fmancial statements is described as follows;

Goyernrnental funds: Govenmienlal Funds are those through which general govemmental functions of the Village are financed. The focus ofthe governmental fund's measurement (in the fund statements) is upon determination of financial position imd changes in financial position (sources, uses and balances of curroni financial resources) rather than upon net income. Expendable assets are assigned to funds according to the purpose for which they may be used. Current liabilities are assigned to fiinds from which ihey will be paid. 1 he difference bewcen a governmental fund's assets and liabilities is reported as fund balance. In general, fund balance represents the accumulated expendable resources that may be used to finance future period operations ofthe Village.

24

Village of Grosse fete, Louisiana Notes to the Financial Statements

December 31.2009

1. Summary uf Significant Accounting Policies (Continued)

Basic Financial Statements - Fund Financial Statements (Continued)

General Fund - The General Fund is the main operating fund ofthe Village. It is used to account for all financial resources not accounted for in otJicr funds. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in tliis fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the Genera! Fund.

Special Revenue Fund - The Special Revenue Fund is used to account for the proceeds of specific revenue resources (other than assessments, expendable trusts or major capita] projects) that are legally restricted to expenditures for specific purposes.

Proprietary Fund IVpes: Proprielaiy Funds are accounted for on a Oow of economic resources measurement focus. ITie accounting objectives are a determination of net income, financial position and changes in ciish flow. All assets and liabilities associated with a Proprietary Fund's activities are included on its balance sheet. The following are the Village's Proprietar>^ Funds:

Enterprise Fimd - Used to account for operations Uiat are financed and operated in a manner similar to privaie business enterprises where the costs (expenses, including depreciation) of providing water and sewer services to the general public on a continuing basis are financed through user charges.

Measurement Focus and Basis of Accounting

The govemment-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund statements. Revenues are recorded when eamed and expenses arc recorded when a fiability is incurred, regardless ofthe timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental tund financial staiements arc reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accountmg, revenues are recognized as soon as ihey arc both measurable and available. "Available" means collectible within Ihe current pcrit>d or soon enough thereafter to be used to pay liabififies ofthe current period. For this purpose, the government considers revenues to be available if they are collected within 60 days ofthe end ofthe current fiscal period. Expenditures are generally recognized when the related liability is incuired, as under accrual accounting-1 lowe\'er, debt service expenditures, as well as expendhures related to compensated absences and claims and judgments, are recorded only when payment is due.

25


December 31,2009


Use of Estimates

The preparjation of financial statements in conformit>' with generally accepted accounting principles requires m^agement to make esfimates and assumpfions that affect the reported amounts of assets and liabilities aind disclosure of confingent assets and liabilities at the date ofthe financial statements and the reported arpounts of revenues and expenditures during the reporting period. Actual results could differ form these estimates.

Budgets

Budgets arp adopted on a basis consistent with generally accepted accounting principles. Aimual appropriated budgets are adopted for the general, special revenue, capital improvement and debt service funds. All annual appropriations lapse at fiscal year end.

Encumbrances

Encumbrai)ces represent commitments related to unperfomied contracts for goods or services. Encumbrance accoimting, under which purchase orders, contracts, and other commitments for the expenditure of resources arc recorded to reserve that portion ofthe applicable appropriation, is not utilized by the Village.

Non-operating revenue and expense

The Village's proprietaiy fund distinguislies between operating and non-operating revenues and expenses. Operating revenues and expenses ofthe Village's water and sewer fund consists of charges for services (including tap fees) and the costs of pro\'iding those services, including depreciation and excluding interest cos t. All other revenues and expenses are reported as non-operating.

Cash and Cash Equivalents

For purposes ofthe Statement of Cash Flows, the Proprietary Fund considers cash balances above the day to day needs and funds invested in demand deposits, certificates of deposit, obligafions of the U, S. I'rcasury, federal agencies, or U. S. go^crmnent instmmentalities with original maturities of 90 days or less to be cash equivalents. Investments in Louisiana Asset Management Pool (LAMP) are also considered cash equivaJenls. LAMP assets are restricted to maturities of 90 days or less, at balance sheet date.

26


December 31,2009


Investmenjts

State statutjes authorize the Village to invest in any direct obligafion ofthe United States Treasury, other debt issue( or guaranteed by the full faith and credit ofthe United States, certificates of deposit of any bank in Lo(iisiana, mutual funds which arc registered with the Securifies and Exchange Commission and invest in se;curities ofthe U. S. govemment or its c^encies, guaranteed investment contracts issued by banks or insurance companies or investment grade coimnercial paper of domesfic U. S. Corporations.

In addition! local govemments in Louisiana are authorized to invest in the Louisiana Asset Management Pool, Inc. (J AMP), a non-profit corporation formed by an initiative ofthe State Treasurer and organized under the s|ate laws ofthe State of Louisiana, which operates a local govemment investment pool. Investment^ are stated at market value.

Interfund Activity

interfund activity is reported as either loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and arc subject to elimination upon consoiidatitpn. Services provided, deemed to be at market or near market rates, are treated as revenues and expendjtures/expenses. Reimbursements are when one fund incmrs a cost, charges the appropriate benefiting ^md and reduces its related cost as a reimbursement. All other interfund transactions are treated as trjansfers. Transfers between govemmental or between proprietary funds are netted as pan of the reconciliafion to the govemment-wide financial statements.

Inventories

Purchases o|f operating supplies arc recorded as expenditures when purchased; inventories of such supplies are not recorded and are not considered by management to be material.

Prepaid It^ms

Payments made to vendors for services thai will benefit periods beyond December 31 are recorded as prepaid iteihs.

27

Village of Grosse Tete, Louisiana Notes lo the Financial Statements

December 31, 2009


Capital Assets

Capital assets, which include property, plant and equipment, are reported in the applicable governmental or business-type acfivities columns in the government-wide financial statements and in the fund financial statements for proprietary fund. Capital assets purchased or acquired are reported at historical cost or esfimated historical cost. Donated assets are reported at fair market value as ofthe date donated. Additions, improvements and other capilal outlays that significantly extend the useful life of an asset are capitalizedL Other costs incurred for repairs and maintenance are expensed as incurred. Depreciation on all assets is provided on the straight-line basis over the following estimated .usefial lives:

Buildings 40 Years Land improvements 20 Years Water distribution system 20 Years Mowers, tractors and attachments 15 Years Fire tmcks 15 Years Fird fighfing equipment 10 Years Light imcks & equipment 5 Years Radios 5 Years

The Village has elected to implement GASBS No. 34 in so much as it relates to infrastmcture on a prospective basis (no retroactive application).GASBS No. 34 requires the Village to report and depreciate new infrastructure assets effective with the beginning ofthe year of implementation. Infrastructure assets include roads, underground pipe (other than related to utilities), etc. These infrastmcture assets are likely to be the largest asset class ofthe Village. Neither their historical cost nor related depreciation has historically been reported in the financial statements.

Long-Ter]m Debt

Long term debt obligations to be repaid from govemmental and business type resources are reported as liabilities in the government-wide staiements.

Long term debt for governmental funds is not reported as liabilifies in the fund financial statements. The debt proceeds are reported as other financing sources and payment of principle and interest are reported as expenditures in the fund statements.

The reporting of long term debt in the proprietary staiements is the same in the flind statements as it is in the government-wide statements.

28


December 31, 2009


Fund Equity - Equity Classifications

Government Wide and Proprietary Fund Nel Assets

Govemment-wide and proprietary fund nei assets displayed in three components:

A. Invested in capital assets, net of related debt - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, constmction, or improvement of those assets.

B. Restricted net assets ~ Consists of net assets with constraints placed on the use either by: external groups such as creditors, grantors, contributors, or laws or regulations of other govemments, or law through constitutional provisions or enabling legislation

C. Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or "invested m capital assets, net of relaied debt".

Fund Financial Statements

In the Fund Financial Statements, governmental fund equity is classified as fund balance. Fund balance is further classified as reserved and unreserved, with unreserved fiirther split between designated and undesignated.

Governmental fund balances are repotled as "reserved" when the balances are not available for appropriation or expenditure (for example because they represent supplies inventories) or because they are legally segregated for a specific future use. The remaining balances are "unreserved" fund balances. From time to time, the Board of Aldermen agrees to set aside or "designate'' resources for future uses -such as for specific capital projects. These unreserved, designated balances are based on management's tentative plans and can be changed.

Fund balance classified as "reserved" is ailributable to the special revenue fund established to account for Iberville parish sales tax revenue specifically designated by law for use in providing fire protection for the citizens ofthe Village and can only be utilized for that purpose. Unreserved nel assets are those ofthe general fund related lo providmg general governmental services to the citizens ofthe Village.

29

Village of Grosse Tete, Louisiatia Notes to the Financial Statements

i December 31, 2009

2- Stewardship, Compliance and Accountability - Budgets

The Village follow's these procedures in establishing the budgetary data reflected in the financial statements.

A. The Village Clerk prepares a proposed budget for submission to the Mayor and Board of Aldermen no later than 15 days prior lo the beginning ofthe ensuing fiscal year.

B. A summary ofthe proposed budget is published and the public is notified that the proposed budget is available for public inspection. At the same time, a public hearing is called. A public hearing is held on the proposed budget at least 10 days after publication of the call for the hearing.

C. After the public hearing and completion of all action necessary to finalize and implement the budget, the budget is adopted thi'ough passage of an ordinance prior to the commencement ofthe fiscal year for which the budget is being adopted.

D. Budgetat) amendments involving the transfer of funds from one department, program or function to another or involving increases in expenditures resulting from revenues exceeding amounts estimated, require the approval ofthe Board of Aldemien.

E. Formal budgetary integration is employed as a management control device during the year for the General Funds.

F. The budget for the General Ftmd is adopted on a basis consistent with generally accepted accounting principles,

G. Budgeted amounts are as originally adopted, or as amended from time to time by the Board of Aldermen. Such amendments are not material in relation to the original appropriations.

3. Deposits (Cash) and Investments

Deposits (Cash) Under State law, federal deposit insurance or the pledge of securities owned by the fiscal agent bank must secure these depqsits (bank balances). The market value ofthe pledged securities plus the federal deposit insurance must at all time equal the amount on deposit with the fiscal bank. At year end the book balance ofthe Villagers deposits totaled $128,980 and the bank balance was $168,328, which was insured from risk by federal deposit insurance.

Investments Investments held at December 31,2009 include $101,937 invested in the Louisiana Asset Management Pool inc. (LAMP) (sec Summary of Significant Accounting Pohcies). In accordance with GASB Codification Section (50.165, the investment in LAMP at is not categorized in the three risk categories provided by GASB Codification Section 150.164 because the investment is in the pool of funds and ihereibre not evidenced by securities thai exi-si in physical or book entry form. The LAMP portfolio includes only securities and other obligations in which local govemments are authorized lo invest. Accordingly, LAMP invesiments are restricted lo securities issued, guaranteed, or backed by the L'. S. Treasury, the U. S, govemment or one of its agencies, as well as repurchase agreements collateralized by those securities. The dollar weighted average portfoho maturity of LAMP assets is restricted to not more than 90 days, and consists of no securities with a maturity in excess of 397 days. LAMP is designed to be higlily liquid to give its participants immediate access to their account balances. LAMP issues a publicly available financial report that included financial statements and required supplementary information for MPERS. llie report may be obtained by calling 1 -800-272-8162.

30


December 31, 2009

3. Deposits (Cash) and Investments (Continued)

Change in Investments having a maturity of greater than nmety days:

Fair

Certificates of Ogposft Cosi Value

Balance, December 31,2008 S 419,246 $ 419.246

Add:

Investment purchases

Capitalized interest 10,995 10.995

Less:

Investment nnatufities

Balance, December 31,2009 $ 430.241 $ 430,241

Custodial Risk of Investments

Custodial cfedh risk for investments is the risk that, in the event of a failure ofthe counter party, the Village will not be able to recover the value ofthe investment or collateral securhies that are In the possession i)f an outside party. Investment securities are exposed to custodial credit risk if the securities are insured and are not registered in the name ofthe Village and are held by either the counter-party's trust depanment or agents but not in the Village's name. The Village has no custodial credit risk at December 31, 2009 since all invesunenis were covered by Federal Deposit Insurance.

Interest Rate Risk

As ol* December 31, 2009, ti-ic Village of Grosse Tete's investments consisted of Certificates of Deposit, consequently, the Village has minimal credit risk. The Certificates of Deposit have various maturities ranging from 12 months to 23 months.


December 31,2009

4. Receivables

In the govemment-wide statements, receivables consist of all revenues earned at year-end and not yet received. jAllowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivable balances for the govemmental activities include sales taxes and firanchise taxes. Business-type activities report utilities eamings and grant revenue as its' major receivable.

The foUovring is a summary of receivables for December 31, 2009, net of allowances for uncollectible accounts where applicable:

Class of Receivable

Accrupd Interest Receivable

Taxes:

Frsnchlse

Inlergpvernmentar

Parish sales tax

Statp video poker tax

State t>eei tax

Higftway Maintenance

Village of Rosedale

Grants

Total Intergovernmental

Custpmer Accounts (net)

Total Receivables

5

S

s

General

Fund

1,173

7, 157

32,897

7.569

293

920

-

41.679

1.592

51.902

S

s

s

Special

Revenue

Fund

322

,

8.565

8,565

5,B87

Proprietary

Fund

$ 22

s

---

--

12,259

$ 12.281

5

$

_s _

2009

1,517

7.457

41,463

7.559

293

920

-.

50,245

13.851

73.070

S

s

s

2008

1.762

11.094

46,186

10.356

328

647

323

4,640

62,680

11.121

86.557

Uncollectible amounts due for customers' utility receivables are recognized as bad debts through the establishment of an allowance account at the time infomiation becomes available which would indicate the uncollectibility ofthe particular receivable. The following details the description and amount ofthe allowance for uncollectible accounts at December 31, 2009:

Class of Receivable

Customer Accounts S

$

General

Fund

-$ $

Special

Revenue

Fund

Proprietary

Fund

S 10.000 5

S 10,000 s

Total

10,000 s

10.000 $

2008

10,000

10,000

32


December 31,2009

5. Capita] Assets

A summary ofthe general capital assets at December 31,2009 is as follows:


Non-depreciable: Land

Construction in progress

, Total Non-depreciable

Depreciable:

Buildings & Improvements

Office furniture & equipment

ft/tachinery & equipment

Vehicles

Park

Waterlines & hydrants

Sidewalk & street Improvemente

Fire vehicles & equipment

Total Depreciable

Totals

Less: Accumulated depreciation

Buildings & Improvements

Office furniture & equipment

Machinery & equipment

Vehicles

Parit

Waterlines & hydrants

Sidevralk & street improvements

Fire vehicles & equipment

j Total

total Depreciable, Net

Total Governmental Activities Capital Assets, net

Balance

1/1/2009

0

6.500

6,500

317,068

33,041

221,434

53.729

32,431

47,228

115.223

773,406

1,593,559

1,600,059

291,078

26.380

205,310

38.846

25,227

15,028

13.979

613,560

1.229,408

364,150

S370.650

Increases

56,800

11,467

68,267

10,795

1,212

11,274

18.225

5,133

13.412

308.846

368,898

437.165

9.770

2,183

10.554

11,250

. 2.112

4,300

6.400

90,695

137,264

Decreases

0

(25.148)

(25.148)

(25.148)

(25,148)

(25.148)

Balance

12/31/2009

56,800

17.967

74.767

327.863

34.253

232.709

71,954

37.554

47,228

128,635

1,057,104

1.937.308

2.012.075

300.848

28.563

215,864

50,097

27,339

19.328

20,379

679,107

1,341,525

595,784

$670,551

Depreciation expense charged to functions of the primary government as follows:

General govemment

Put lic safety-police

Putjiic safety - fire

Public services

Culture & recreation

5,966

16,619

96,066

12,511

7.102

137,264

33


December 31. 2009

5. Capital Assets (Continued)

A summary of proprietary ihnd type property, plant and equipment at December 31, 2009 follows:

Balance

1/1/2009 Increases Decreases

Balance

12/31/2009

Business-type AcUvities

Non-depredable

Land

\ Construction in progress

Total

Depreciable,

< Water system

; Sewer system

; Machinery & equipment

Totai

Less: Accumulated depreciation

.Water system

: Sewer system

: Machinery & equipment

Total

Business-type Activities Capital Assets

S

net $

- $ 18,031

18,031

383.381

335.888

3.815

723,084

230.140

49,824

3.815

283.778

457.337

1,000

4.370

5.370

74,248

12.508

86.756

21.911

7,969

0

29.880

S

0

0

0

$

1,000

22,401

23.401

457.629

348,396

3.815

809,840

252,051

57.792

3.815

313.658

519.583

6. Long Term Debt

The reportipg entity's long term debt is segregated between the amounts to be repaid from govemmental activities ahd amounts to be repaid from business-type activities.

Governmental Activities:

On November 28, 2005, the Village entered into a municipal lease agreement with Emergency One, Inc. for tlie lease of a 2004 fnc truck. The terms ofthe lease are for ten annual rental payments of $12,829.89. The payme:|its bear mterest at 4.90%. The lease agreement qualifies as a capital lease for accounting purposes (t tle transfers at the end ofthe lease term) and therefore, has been recorded at the present value ofthe futur mmimum lease payments a.s ofthe date of inception.

34


December 31,2009

6, Long Term Debt (Continued)

In January 2009, the Village purchased a 2009 Ford F650 Rescue Unit at a cost of $217,486, of which $50,000.00 was paid in cash with the balance of $167,486 was fmanced by the Bank of Maringouin. 'fhe loan is payable in seven annual payments of $28,394.23 which mcludes interest at a rate of 4,5%. The first payment is due December 31, 2009 and each payment thereafter is due on the same day of each year after that. Final payment is due December 31,2015.

hiterest expense mcurred on all outstanding debt during 2009 was $10,488.

The following is a schedule of die future minimum lease pa>'ments anticipated for both the capital lease and note payable, and the present value ofthe net minimum lease payments as of December 31, 2009.

Year

2010

2011

2012

2013

2014

2015

2005 Capital

Piincipai

9.479

9.943

10.430

10,941

11,478

12,040

Lease

Interest

3.151

2,687

2,200

1.686

1,152

590

Total

12.630

12.630

12,630

12,628

12.630

12.630

Year

2010

2011

2012

2013

2014

2015

Note Payable

Principal

21.796

22.777

23,802

24,873

25.992

27,389

Interest

6,598

5,617

4,593

3,521

2.402

1.243

Total

28,394

28.394

28.394

26.394

28,394

28,632

64,311 $ 11,466 S 75.777 146,629 $ 23.975 $ 170,603

Less: Interest

Present value of future minimum tease payments

(1K466) Less: Interest (23.975)

5 0 1 1 Present value of future minimum lease payments $ 146,629

The followmg is a summary of changes in long-term debt for the year ended December 31, 2009:

Type of Debt

Governmental Activities.

CapitahLease Obligation

Promissory Note Payable

Balance at

12A31/2008

S 73,347

-S 73.347

S

s

Additions Deductions

- S

167,486

167.486 S

9,036

20.857

29,893

Balance at

12/31/2009

S 64.311

146,629

$ 210,940

Amounts Due

In One Year

$ 9,479

21/96

S 31.275

35


December 31,2009

7. Interfund Receivables/Payables

On December 31,2009, amotmts due to and from other funds are as follows:

Due TJ3/From Other Funds:

Receivable Fund

General

General

Payable Fund

Fire

Utility

S

J_

Amount

28.987

168,867

195,653

8. Retirement Commitments

Municinal Eniplovccs' Retiremcni Svstem (MBRS) -

Plan Description Substantially all of tlic Village of Grosse Tete's full time employees participate in the Municipal Employees' Retirement System - Plan "A", a cost sharing multiple-employer defined benefit pension pl&n administered by a separate Board of Trustees. All Village full-time employees are eligible to participate in the System. MERS provides retirement, disabilit}', and survivor benefits lo participating, eligible erhployecs. Benefits are established and amended by State statute. The Municipal Employees' Retirement System issues a publicly available fmancial report that includes fmancial statements and required supplemcntar>' information for MERS. Tlie report may be obtained by calling 1 -225-925-4810.

funding Policy The payroll for employees covered by the System for the year ended December 31, 2009 was $161,787; the Village's total payroll was $361,127. Plan members are required by State statute to contribute 9.25% of their annual covered salary and employers are required to contribute at an actuarially determined rate. The current employer ntic is 13.50% ofthe employee's eligible compensation to ihe System. The contribution requirements of plan members and employers are established by, and may be amended by state law. The contributions for the years ended December 31, 2009, 2008 and 2007 were $35,935, $31, 927 and $32,470, respectively and are equal to the required contributions for each year.

36

^ O


: December 31, 2009

8. Retirement Commitments (Continued)

Municipal Police Employees Retirement'Svstem (MPERS) -

Plan Description All ofthe Village's M\ time pohce employees participate in die MPERS, a cost-sharing, multiple-employer defined benefit pension plan administered by a separate Board of Trustees. MPERS provides retirement, disability and survivor benefits to participating, eligible employees. Benefits are established and amended by:state statute. MPERS issues a publicly available financial report that includes financial statement and required supplementary information. This report may be obtained by writing to Municipal Police Employees Retirement System, 8401 United Plaza Boulevard, Suite 270, Baton Rouge, Louisiana 70809, or by calling (225) 929-7411.

funding Policy Plan members are required by state statute to contribute 7.5% of their annual covered salar>' and employers are required to contribute at an actuarially determined rate. The employer rates were 9.5% (January through June) and 11% (July through December) of annual covered payroll The contribution requirements of plan members and the employer are established by, and may be amended by actuarial valuation and are subject to change each year based on results ofthe valuation for the prior fiscal year. Contributions to MPERS for the years ending December 31, 2009, 2008, and 2007 were $ 3,732, $3,672 and $4,202, respectively, and were equal to the required contributions for each year.

9. Compensated Absences \

The Village of Grosse Tele grants eligible employees paid leave. The policy allows for annual leave to be eamed based on length of employment as follows:

• Five days annual leave shall be eamed on the anniversary- date of employment of each permanent employee whh less than five years of service.

• Ten days annual leave shall be eamed on the amiiversary dale of employment of each employee with five or more full years of service of permanent service.

Annual leave may not be carried over or accumulated from one anniversary date of employment to another. At December 31. 2009, the amount of imused annual leave was immaterial and therefore was not recorded in the financial statements.

10. Deferred Revenue

At December 31, 2009, the Village reported deferred revenue of $58,500. In 2005, the Village received a grant of $30,000 from the State of Louisiana to be used for dramage improvements related to the sidewalk project, of which $6,500 was expended leaving the remamder of $23,500 held by the Village awaitmg completion ofthe sidewalk project. Additionally, in 2009 the Village received a grant from the State of Louisiana to be used specifically for police equipment, Al December 31, 2009 the fijnds had not been spent and were subsequentiy expended in 2010 in accordance with grant terms.

37


December 31, 2009 11. Risk Management

The Village is exposed to various risks of loss related to torts; theft and damage to, and destruction of assets; errors and omissions, injuries to employees; and namral disasters. The Village purchases commercial insurance at levels which management believes is adequate to protect against risk of loss in these areas: workers' compensation liability, general liability, law enforcement liability, public officials' errors and omissions, automobile liabihty and physical damage coverage and property fire coverage. Settled claims resulting from these risks:huvc not exceeded tlie commercial insurance coverage in any of the past three years. There have been no significant reductions in coverage since the prior year

12. Economic Dependence

The Village of Grosse Tete received 68% of its total revenue from parish sales tax. Proceeds ofthe 1% sales tax are to be used for the purposes of opening, constructing, paving and improving streets, sidewalks, roads and alleys, constructing bridges, purchasing or constructing waterworks, sewers, drains, drainage canals, pumping plants, sewerage disposal works, light and power plants, gas plants, halls, jails, tire departments' stations, and equipmeni, hospitals, auditoriums, public parks, natatoriums, hbraries, docks, wharves, river terminals and other public buildings, including the necessary equipment and furnishings there for. 'fhe 2/3% sales and use tax are dedicated to be used by the Village to pay the cost oi'capital outlay projects; to maintain and operate public facilities, to administer local goverimients, and to provide other lawful services. Additionally, proceeds ofthe 2/3% sales and use tax provided by the Iberville Parish Council are dedicated for fire protection for the Village.

13. Federal Grant

During 2009 the Village of Rosedale received the Assistance to Firefighters Grant from the U. S. Department of Flomeland Security - Federal Emergency Management Agency (FEMA). The purpose of the grant was to purchase commtmications equipment for the various fire departments within Iberville Parish, a total of fifty-five M7300 mobile radios and two himdred and seven T5250 portable radios was purchased at a tolal cost of $1,091,961. The federal share provided by the grant was $983,215 or 90% and the local share was $109,246. Each department contributed 1 dVo ofthe cost of equipment they received. The Village of Grosse Tete re£;:eived4 mobile and 17 portable radios at a total cost of $87, 203 of which the federal share was $78,483 and the Village's share was $8,720.

14. Subsequent Events

The Village received the American Recoveiy and Reinvestment Act Assistance to Firefighters Station Construction Grant fiom U. S. Department of Homeland Security - Federal Emergency Management Agency (FEMA) the purpose of which is to build new or modif>' existing fire stations in order for departments to enhance their response capability and protect the community tiiey ser\'e from fu*e and fire-related hazards. The total award was $2,763,080. The project is in the planning and design phase, construction is expected to begin in 2010.

38

RpQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)


Budgetary Comparison Sctwdule

General Fund

For the Year Ended Oecemt^r 31, 2009 with comparative summarized totals for 2008

DC\/CXII ICC

Taxes

Licenses and pecmits

Intergovemmenlal revenue

Grants

Fines

Interest

Miscellaneous

Donations

FEMA reimbursements

Total revenge

Expenditures - Cun^nt

General government

Public safety - Police

Public works - Hlghvrays and streets

Health

Culture and recreation

Total current expenditures

Capital outlays -

General governmeni

Public safety - Police

Highways and streets

Culture and recreation

Total capitat outlay

Total Expenditures

Excess (Deficiency) of Revenue Over

Expenditures

eudqeted Amounts

Orii^inBl

S 62,280 S

72,000

S4B,2&5

30,000

30,000

5,500

5,150

0

0

753,215

244,100

63.350

163,500

4,200

9,200

434,350

90,000

5.000

133.865

40.000

268,855

753.215

C

Final

62.280

72.000

548,265

65,000

30 000

5,500

10,000

0

60,000

853.065

234.500

94,650

254,200

0

10,700

594,050

90,000

40,000

133,865

40,000

303.865

897,915

(44,850)

Actual Amounts

{Budactarv Basis l

S 39.213

49,006

605,016

0

41,308

8,262

6.177

30.000

50.317

829,300

199,677

67.725

263.005

0

32,552

562,959

62,192

3,450

36,617

14,593

116.852

679,810

149.489

Variance with

Final Budget

Over(Uraler\ (

S (23,067)

(22,994)

56.731

(65,000)

11,308

2,762

(3,823)

30,000

(9,683)

(23.765)

(34.823)

(26,925)

8.805

0

21,852

(31.091)

(27.808)

(36.550)

(97.248)

(25.407)

(187,013)

(218.105)

194,339

2008

Actual Amounts

Budqetarv Basis)

S 49.687

40.585

525,904

5,0CK)

26,649

12,460

17,914

0

0

578.199

231,804

66,931

239,131

2.684

14,142

554,692

0

5,225

25,141

7,782

38,148

592.840

85,359

OTHER FIMANCING SOURCES (USES):

Operating transfers (out)


0

0

(60,000)

(60,000)

(119,000)

(119.000)

(59,0(X))

(59,000)

(93.822)

(93.822)

Excess (Deficiency) of Revenue and other

Financing Sources over Expenditures and

Other Financing Uses

Fund Balance. Beginning

Fund Balance. Ending

0

661,862

661,862 $

(104,850)

661,862

557.012 $

30.489

661,662

692,351 $

135,339

661,682

797,021 S

(8,463)

670.326

661,862

BUDGET DISCLOSURES:

Basis of Accounting - The Budget is prepared using the modified accnjal basis of accounUng which is described (n Note 1 in the

Village of Grosse Tete's financial statements for the year ending December 31, 2009

Excess Expendrtures over Appropriations - The General Fund Amended Budget for 2009 includes expenditures In excess of

Budget Appropriations of $ 44,850. This is largely due to increase in expenditures for Highways and Streets for salaries and

related expenditures

39


Budgetary Compartson Schedule

Special Revenue Fund - Fire Protection

For the Year Ended December 31, 2009 with comparative summarized totals for 2008

Revenues

Intergovernrtiental

Ibenrille Parish shared revenue

Grants

Federal Grant - DHS/FEMA

Federal Grant ARRA

Interest income

Miscellaneous

Gain on salq of fixed asset

Total revenue

Budqeted Amounts

Orlfllna!

$ 137.700

0

0

0

3,600 500

S

Final

135,200

0

0

400,£K30

3.600

3.000

0

Actual Amounts

(Budqetarv Baslsl

$ 131.007

2.105

78.483

0

2.686 1,009

8.000

Variance with

Final Budget

Over (Under)

S (4.193)

2,105

78,483

(400,000)

(914)

(1.991)

8.000

2008

Actual Amounts

(Budaetarv Basis)

S 120.419

117.325

0

0 3,529

0

0

141.800 541.800 223.290 (316.510) 241,273

Expenditures

Public safety - Fire

Capital outlay

Debt Service

Principal dnd interest

Total expenditures

Excess (Deficiency) of Revenue

Over Expenditures

78,300

20.500

106,300

460,500

78,571

320,313

(27.729)

(140.187)

60.339

152,883

43,000

141,800

43.000

609,800

(68,000)

40,381

439.265

(2.619)

(170,535)

(215,975) (147.975)

41,752 254,974

(13,701)

OTHER FINAf^CING SOURCES (USES):

Proceeds frqm loan financing

Operating transfers (in)out


167,486

0

167.466

167,486

0

167,486

Excess (Deficiency) of Revenue and other

Financing Sources over Expenditures and

Other Financing Uses

Fund Balance, Beginning

Fund Balance, Ending

161,101

(68,000)

161.101

161.101 $ 93,101 $

(48,489)

161,101

19,511

(0)

112.612 S 19.511 S

(13,701)

174.801

161.101

BUDGET DISCLOSURES. Basis of Accounting - The Budget is prepared using the modified accrual basis of accounting which is described in Note 1 in the

Village of Grosse Tete's financial statements for ihe year ending December 31. 2009 Excess Expenditures over Appropriations - The Special Revenue Amended Budget for 2009 includes expenditures in excess of

Budget Appropriations of $221,557 This is largely due to increase in expenditures for capital outlays, and current expenditures.

specifically, conference and conventions, insurance, equipment repair, and tools and supplies

40

01HER SUPPLEMENTARY INFORMATION

Village of Grosse Tete, Louisiana Schedule of Per Diem and Paid to the Mayor and Board Members

Year ended December 31,2009

Total Mayor -

Michael Chauffe $ 26.400

Members ofthe Board of Aldermen -

Richard David 8,400 Juanita J. Hill 8,400 Kyle Booksh 8.400

$ 51.600

41

REI^ORTS REQUIRED BY GOVERNMENT AUDITING STANDARDS

W. Kathleen Beard Certified Public Accountant

10191 Bueche Rd. - ErwinviUc, LA 70729 (225) 627-4537 - FAX (225) 627-4584

REPORT ON INTERNAL CONTROL OVER FINANCL\L REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Honorable Mayor and Members of the Board of Aldermen


I have audited the accompanying financial statements ofthe govenmiental activities, business-type activities and each major fund ofthe Village of Grosse Tete, Louisiana, as of and for the year ended December 31, 2009, which collectively comprise the Village of Grosse Tete's basic financial statements and have issued my report thereon dated July 7, 2010. I have conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Intemal Control Over Financial Reporting

In plaxming and performing my audit, 1 considered the Village of Grosse Tete, Ix)uisiana's internal control over financial reporting as a basis for designing my auditing procedures for the purpose of expressing my opinion on the basic fmancial statements, but not for the purpose of expressing an opinion on the effectiveness of the Village of Grosse Tete,'Louisiana's internal control over fmancial reporting. Accordingly, I do not express an opinion on die effectiveness of the Village of Grosse Tete, Louisiana's internal control over fmancial repordng.

A deficiency in intemal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis.

My consideration of intemal control over fmancial reporting was for a lunited purpose described in the first paragraph of this section and designed to identify all deficiencies in internal control over fmancial reporting that might be deficiencies, significant deficiencies or material weaknesses. 1 did not identif>' any deficiencies in mtemal control over financial reporting that I consider to be material weaknesses, as defined above.

42

Compliance |

As part of obtaining reasonable assurance about whether the Village of Grosse Tete, Louisiana's basic financial statements are free of material misstatement, I performed tests of its compliance with certain provisions of Jaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of my audit and, accordingly, I do not express such an opinion, ifhe results of my tests disclosed one instance of noncompliance that is required to be reported under Govem^nt Auditing Standards listed as Finding 2009-1.

This report is intended for the information ofthe mayor and members ofthe Board of Aldermen ofthe Village of Grosse Tete, Louisiana and the Legislative Auditor of the State of Louisiana and is not intended CO be and should not be used by anyone other than these specified parties. However, under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.

Certified Publfc Accountant July 7, 2010

43

Village of Grosse Tete, Louisiana Schedule of Findings and Responses

December 31,2009

Current Year Findings:

Section I - Summary of Audit Results

1. llie auditor's report expresses Ian unqualified opinion on the basic financial statements ofthe Village of Grosse Tete. •

Section ii - internal Control and Compliance to the Financial Statements

a. Report on Intemal Control and Compliance Material to tlie Financial Statements

Internal Control Material Weaknesses ^ Yes _X_ No Significant deficiencies Yes X No

Compliance Material to the Financial Statements _2 Yes No

Finding 2009-1 Violation of Local Scniccs Law

Criteria: 1 .oui.siana RS 33:1321-1325 ''the Local Services Law" provides for the sale of movable surplus property to another public entity. The statues requires that the agreement be written, acceptance shall be by passage of a ordinance or resolution and that the agreement, ordinance or resolution be published in official journal ofthe municipaliiy.

ComMon: A vehicle, owned by the Village of Grosse Tete was sold to Cottonport l-ire Department without a written intergovernmental cooperative agreement. Further, there is no mention in the minutes of meetings ofthe board ofalderracn. any discussion ofthe matter or passage of resolution or ordinance. There is no ordinance or resolution nor was any agreement published in the official journal.

Context: There is a written ''Bill of Sale of Movable Property" which describes the property, names the parties and sets ihe sales price. It is signed b> the fire chief as seller and is signed by the buyer.

Cause: Lack of opportunity for oversight by the governing board.

Recommendation: Establish a lonnal written policy goveming the management of all property owned by the municipality, that includes requirements for pre-approval of material purchases of property, use of property including vehicles, and guidelines for disposal of surplus property.

Management's Corrective Action Planned: The goveming body agree with the fmdmg and have instituted use of a written document to be provided to all department heads which provides for guidelines and restriction's on use of property owned by the Village of Grosse Tete.

44

Village of Grosse Tete, Louisiana Schedule of Findings and Responses

December 31,2009

Current Year Findings (Continued);

Section 111- Internal Control and Compliance Material to Federal Awards

N/A - Federal awards below $500,000 thresh hold required by OMB Circular A-133

Section IV - Management Letter - No management letter was issued.

45

Village of Grosse Tete, Louisiana Schedule of Findings and Questioned Costs - Prior Year

December 31,2009

Prior Year Findings:

Finding 2008-1 Violation of State Budget Law

Criteria: Louisiana RS 39:1311 establishes requirements for adopting and amending general and special revenue budgets when actual expenditures plus expected expenditures exceed budgeted amounts by 5% or more. Condition: The Special Revenue - Fire Protection Fund's actual expenditures exceeded budgeted expenditures by 5.14%.

Resolution: Management improved it's process for preparing a Budget-Actual Comparison Financial Reports and revised the format to be easily analyzed making the budget amendment process much easier.

Section III-Internal Control and CompHance Material to Federal Awards

N/A - Federal awards below $500,000 thresh hold required by OMB Circular A-133

Section IV - Management Letter - No management letter was issued.

village of grosse tete - louisianaapp1.lla.la.gov/publicreports.nsf/82f52cf87e70409d...village of...

Documents