2co/jul-2 anil: 02...2co/jul-2 anil: 02 landry parish fire protection district no. ill financial...

2CO/JUL-2 A n i l : 02

LANDRY PARISH FIRE PROTECTIONDISTRICT NO. Ill

FINANCIAL REPORT

DECEMBER 31,2006

Under provisions of state law, this report is a publicdocument A copy of the report has been submitted tothe entity and otherappropriate 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

C O N T E N T S

Page

INDEPENDENT AUDITOR'S REPORT 1 and 2

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS)

Statements of net assets 5Statement of activities 6

FUND FINANCIAL STATEMENTS

Balance sheets - governmental fund 8Reconciliation of the governmental funds balance sheetto the statement of net assets 9

Statement of revenues, expenditures,and changes in fund balance - governmental fund 10

Reconciliation of the statement of revenues, expenditures,and changes in fund balances of governmental funds toto the statement of activities 11

Notes to basic financial statements 12-21

REQUIRED SUPPLEMENTARY INFORMATION

Budgetary comparison schedule - general fund 23Budgetary comparison schedule - general fund - expenditures 24

REPORT ON COMPLIANCE AND OTHER MATTERS AND ON INTERNALCONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OFFINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITHGOVERNMENT AUDITING STANDARDS 25 and 26

Schedule of findings and questioned costs 27

Schedule of prior year findings 28

Schedule of compensation paid to board members 29

VIGE, TUJAGUE ̂ NOELA CORPORATION OF CERTIFIED PUBLIC ACCOUNTANTS

151 N. 2tio STREETP.O. BOX 1006

EUNICE, LOUISIANA 70535SHIRLEY VIGE, JR., C.P.A. TELEPHONE:FRANK G. TUJAGUE, C.P.A. 337-457-9324

DOMINIQUE M. NOEL, C.P.A. FAX:

337-457-8743

INDEPENDENT AUDITOR'S REPORT

To the Board of CommissionersSt. Landry Parish Fire Protection District No. IllOpelousas, Louisiana

We have audited the accompanying financial statements of the governmental activities of the St.Landry Parish Fire Protection District No. Ill, a component unit of the St. Landry Parish Police Jury,as of and for the year ended December 31, 2006, which collectively comprise the basic financialstatements, as listed in the table of contents. These financial statements are the responsibility of theDistrict's management. Our responsibility is to express an opinion on these financial statements basedon our audit.

We conducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America and the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides a reasonable basis for ouropinion.

In our opinion, the financial statements referred to above present fairly, in all material respects,the respective financial position of the governmental activities of the St. Landry Parish Fire ProtectionDistrict No. Ill as of December 31, 2006, and the respective changes in financial position, thereof forthe year then ended, in conformity with accounting principles generally accepted in the United Statesof America.

In accordance with Government Auditing Standards, we have also issued our report dated May31, 2007, on our consideration of the St. Landry Parish Fire Protection District No. Ill's internalcontrol over financial reporting and on our tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements and other matters. The purpose of that report is todescribe the scope of our testing of internal control over financial reporting and compliance and theresults of that testing and not to provide an opinion on the internal control over financial reporting or

To the Board of CommissionersSt. Landry Parish Fire Protection District No. Ill

on compliance. That report is an integral part of an audit performed in accordance with GovernmentAuditing Standards and should be considered in conjunction with this report in considering the resultsof our audit.

The St. Landry Parish Fire Protection District No. Ill has not presented management'sdiscussion and analysis that the Governmental Accounting Standards Board has determined isnecessary to supplement, although not required to be part of, the basic financial statements.

Our audit was conducted for the purpose of forming an opinion on the financial statements thatcollectively comprise the St. Landry Parish Fire Protection District No. Ill's basic financial statements.The other supplementary information on pages 23-29 is presented for purposes of additional analysisand is not a required part of the basic financial statements of the St. Landry Parish Fire ProtectionDistrict No. III. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in all material respects in relation tothe basic financial statements taken as a whole.

The prior year comparative information has been derived from the St. Landry Parish FireProtection District No. Ill's 2005 financial statements and, in our report dated May 10, 2006 weexpressed unqualified opinions on the respective financial statements of the governmental activities.

tTl*':&Noel,(

May 31,2007Vige, Tujague & Noel, CPA's

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BASIC FINANCIAL STATEMENTS

- 3 -

GOVERNMENT-WIDE FINANCIAL STATEMENTS(GWFS)

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ST. LANDRY PARISH FIRE PROTECTION DISTRICT NO. IllStatements of Net Assets

December 31,2006 With Comparative TotalsFor December 31, 2005

ASSETSCash and cash equivalentsInvestments, at costReceivables (net of allowance for uncollectibles):

Ad valoremState revenue sharingOther

Prepaid itemsCapital assets, net

Total assets

LIABILITIES AND NET ASSETS

Liabilities:Accounts payableAccrued liabilitiesPension deduction payable

Total liabilitiesNet Assets:

Investment in capital, net of related debtUnreserved, undesignated

Total net assets

2006$ 1,719,623

356,004

2,409,014175,554

573,886

798,347S 5,462.485

78,77977,47834,870

191.127

798,3474.473.011

$5.271.358

2005$ 1,173,803

340,908

2,267,050175,185

2,4323,639

724.522S 4.687.539

$ 42,70874,48326,536

143.727

724,5223,819.290

$ 4.543.812

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

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ST. LANDRY PARISH FIRE PROTECTION DISTRICT NO. IllStatement of Activities

For the Year Ended December 31,2006

Program Revenues

Net (Expense)Revenues and Changes in

Net Assets

ActivitiesGovernmental activities:

General governmentPublic Safety

Total governmentalactivities

Expenses

$ 2,072,854

$ 2.072.854

Fees, Fines,and Chargesfor Services

$ -

i_=

CapitalGrants

$ 26,524

$ 26.524

GovernmentalActivities

$ (2,046330)

$ (2,046.330)

General revenues:TaxesAd valorem taxesIntergovernmental revenuesState revenue sharingFire insurance rebateInterest and investment earningsNet (decrease) in fair value of investmentsMiscellaneous income

Total general revenues

Change in net assets

Net assets- December 31, 2005Prior period adjustmentNet assets-December 31, 2005-restated

Net assets- December 31, 2006

2,407,481

175,55477,63778,020

(885)36,069

2,773,876

727.546

4,190,225353,587

4,543.812

S5.271.358


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FUND FINANCIAL STATEMENTS

- 7 -

ST. LANDRY PARISH FIRE PROTECTION DISTRICT NO. IllBalance Sheets

Governmental FundDecember 31, 2006 and 2005

ASSETS

CashCertificates of depositInvestmentsReceivables:

Ad valoremState revenue sharingOther

Prepaid items

Total assets

2006

$ 1,644,95074,673356,004

2,409,014175,554

573.886

S 4.664.138

2005

$ 1,101,88471,919340,908

2,267,050175,1852,4323.639

LIABILITIES AND FUND BALANCES

Liabilities:Accounts payablePension deduction payableAccrued liabilities

Total liabilities

Fund balances:Fund balances - unreserved

Total fund balances

Total liabilities and fund balances

$ 78,77977,47834.870

191.127

4.473.011

4.473.011

$ 4.664.138

$ 42,70874,48326.536

143.727


ST. LANDRY PARISH FIRE PROTECTION DISTRICT NO. IllReconciliation of the Governmental Funds Balance Sheet

to the Statement of Net AssetsFor the Year Ended December 31, 2006

Total fund balances for governmental fundsat December 31, 2006 $ 4,473,011

Total net assets reported for governmentalactivities in the statement of net assets isdifferent because:Capital assets used in governmental activities

are not financial resources and, therefore, arenot reported in the funds. Those assetsconsist of:

Land $ 42,681Building, net of $436,340 accumulated depreciation 417,781Equipment, net of $1,490,183 accumulated depreciation 337,885 798347

Total net assets of governmental activities at December 31,2006 S 5.271.358


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ST. LANDRY PARISH FIRE PROTECTION DISTRICT NO. IllStatements of Revenues, Expenditures,

and Changes in Fund Balance - Governmental FundYear Ended December 31, 2006 With Comparative Totals for December 31, 2005

Revenues:Taxes:

Ad valoremIntergovernmental:

State revenue sharingFire insurance rebate

Interest incomeNet increase (decrease) in fair value of investmentsOther

Total revenues

Expenditures:Current:

Public safetyCapital outlays

Total expenditures

Excess of revenues over expenditures

Other financing sources (uses):Proceeds from sale of capital assets

Total other financing sources (uses)

Excess of revenues and other sourcesover expenditures and other uses

Fund balances, beginning

Fund balances, ending

2006

$2,407,481

175,55477,63778,020(885)

62,593

2.800.400

1,982,519164,160

2.146,679

653,721

2005as restated

$2,218,044

175,18565,83935,802(4,736)

110.501

2.600,635

1,893,288150,304

2,043.592

557,043

113113

653,721

3,819,290

$4.473.011

557,156

3.262,134

$3.819T290

The accompanying notes are an integral part of the basic financial statement.

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ST. LANDRY PARISH FIRE PROTECTION DISTRICT NO. IllReconciliation of the Statement of Revenues, Expenditures, and

Changes in Fund Balances of Governmental Fundsto the Statement of Activities

For the Year Ended December 31, 2006

Total net changes in fund balance at December 31,2006 per Statement of Revenues, Expenditures andChanges in Fund Balances $ 653,721

The change in net assets reported for governmentalactivities in the statement of activities isdifferent because:

Governmental funds report capital outlays asexpenditures. However, in the statement ofactivities, the cost of those assets isallocated over their estimated useful lives andreported as depreciation expense.Capital outlay which is considered expenditureson the Statement of Revenues, Expenditures andChanges in Fund Balances $ 164,160

Depreciation expense for the year ended December 31, 2006 (90,335) 73,825

Total changes in net assets at December 31, 2006 perStatement of Activities $ 727.546

The accompanying notes are an integral part of the basic financial statement.

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ST. LANDRY PARISH FIRE PROTECTION DISTRICT NO. Ill

Notes to Financial Statements

Note 1. Summary of Significant Accounting Policies

The accounting and reporting practices of the St. Landry Parish Fire Protection District No.Ill conform to generally accepted accounting principles of the United States of America asapplicable to governmental units. GAAP includes all relevant Governmental AccountingStandards Board (GASB) pronouncements. In the government-wide financial statements,Financial Accounting Standards Board (FASB) pronouncements and Accounting PrinciplesBoard (APB) opinions on or before November 30, 1989 have been applied unless thosepronouncements conflict with or contradict GASB pronouncements, in which case, GASBprevails. Such accounting and reporting procedures also conform to the requirements ofLouisiana Revised Statutes 24:517 and to the industry audit guide, Audits of State and LocalGovernmental Units, published by the American Institute of Certified Public Accountants.

The following is a summary of certain significant accounting policies:

Reporting entity:

The St. Landry Parish Fire Protection District No. Ill is a component unit of the St. LandryParish Police Jury. The District was established to provide fire protection for the residentsof the District.

Basis of Presentation

Government-Wide Financial Statements (GWFS)

The statement of net assets and statement of activities display information about the St.Landry Parish Fire Protection District No. Ill, as a whole. The statements distinguishbetween governmental and business-type activities. Governmental activities generally arefinanced through taxes, intergovernmental revenues, and other nonexchange revenues.Business-type activities are financed in whole or in part by fees charged to external partiesfor goods or services.

The statement of activities presents a comparison between direct expenses and programrevenues for each function of the District's governmental activities. Direct expenses are thosethat are specifically associated with a program or function and, therefore, are clearlyidentifiable to a particular function. Program revenues include (a) fees, fines, and chargespaid by the recipients of goods and services offered by the programs, and (b) requirements ofa particular program. Revenues that are not classified as program revenues, including alltaxes, are presented as general revenues.

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Notes to Financial StatementsFund Financial Statement:

The District uses one fund to report on its financial position and the results of itsoperations. Fund accounting is designed to demonstrate legal compliance and to aidfinancial management by segregating transactions related to certain government functionsor activities. A fund is a separate accounting entity with a set of self-balancing accountsthat comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses asappropriate.

The general fund, a governmental fund type, is the general operating fund of the District. Itis used to account for all financial resources of the District except those required to beaccounted for in other funds.

Measurement Focus/Basis of Accounting

Measurement focus is a term used to describe "which" transactions are recorded within thevarious financial statements. Basis of accounting refers to "when" transactions are recordedregardless of the measurement focus applied.

Measurement Focus

On the government-wide statement of net assets and the statement of activities,governmental activities are presented using the economic resources measurement focus asdescribed below.

In the fund financial statements, the "current financial resources" measurement focus or theeconomic resources" measurement focus is used as appropriate:

a. All governmental funds utilize a "current financial resources" measurement focus.Only current financial assets and liabilities are generally included on their balancesheets. Their operating statements present sources and uses of available spendablefinancial resources during a given period. These funds use fund balance as theirmeasure of available spendable financial resources at the end of the period.

Basis of Accounting

In the government-wide statement of net assets and statements of activities, governmentalactivities are presented using the accrual basis of accounting. Under the accrual basis ofaccounting, revenues are recognized when earned and expenses are recorded when theliability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, andliabilities resulting from exchange and exchange-like transactions are recognized when theexchange takes place.

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ST. LANDRY FIRE PROTECTION DISTRICT NO. Ill

Note to Financial Statements

Governmental fund financial statements are accounted for using the current financialresources measurement focus and the modified accrual basis of accounting. Their revenuesare recognized when they become measurable and available as net current assets. Advalorem taxes are recognized as revenue in the year in which they are billed. Fees and nontax revenues are recognized when received. Grants from other governments are recognizedwhen qualifying expenditures are incurred. Available means collectible within the currentperiod or soon enough thereafter to pay current liabilities, usually 60 days.

Those revenues susceptible to accrual are ad valorem and state revenue sharing income.

Expenditures are generally recognized under the modified accrual basis of accounting whenthe related fund liability is incurred except that accumulated unpaid vacation and sick payare not accrued and principal and interest on general long-term debt are recognized whendue. Purchases of various operating supplies are regarded as expenditures at the timepurchased.

Uncollectible ad valorem taxes are estimated based on prior years history.

Program Revenues

Program revenues included in the Statement of Activities are derived directly from theprogram itself or from parties outside the District's taxpayers or citizenry, as a whole;program revenues reduce the cost of the function to be financed from the District'srevenues.

Allocation of indirect expenses

The District reports all direct expenses by function in the Statement of Activities. Directexpenses are those that are clearly identifiable with a function. Indirect expenses of otherfunctions are not allocated to these functions, but are reported separately in the Statementof Activities. Depreciation expense is specifically identified by function and is included inthe direct expense of each function. Interest on general long-term debt is considered anindirect expense and is reported separately on the Statement of Activities.

Use of estimates in the preparation of financial statements:

The preparation of financial statements in conformity with generally accepted principlesrequires management to make estimates and assumptions that affect the reported amountsof assets and liabilities and disclosure of contingent assets and liabilities at the date of thefinancial statements and the reported amounts of revenue and expenditures during thereporting period. Actual results could differ from those estimates.

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Concentration of Risks

Concentration of risks with respect the District is subject to the conditions of the limitedgeographical area of the District.

Budgets:

The District follows these procedures in establishing the budgetary data reflected in thefinancial statements:

1. Prior to January 1, the Chairman submits to the Board a proposed operating budget forthe ensuing year. The operating budget includes proposed expenditures and themeans of financing them.

2. Public hearings are conducted to obtain taxpayer comments.

3. The budget is legally enacted through the passage of a resolution; amendments are alsolegally enacted through the passage of a resolution.

4. The budget for the general fund is adopted on a fund financial statement basis.

5. The budget for the general fund is employed as a management control device during theyear.

All budget appropriations lapse at year end. Revenues may not legally fall short ofbudgeted amounts by more than five percent and expenditures may not legally exceedbudgeted appropriations by more than five percent at the individual fund level. Actualexpenditures did exceed budgeted expenditures by greater than five percent for the yearended December 31, 2006. The District does not use encumbrance accounting.

The budget amounts disclosed in this report are as originally adopted and amended by theBoard.

Cash and Cash Equivalents

Cash includes amounts in demand deposit, interest - bearing demand, andtime deposits. Cash equivalents include amounts in time deposits andthose investments with original maturities of 90 days or less whenpurchased. Under state law, the municipality may deposit funds indemand deposits, interest - bearing demand deposits, or time deposits withstate banks organized under Louisiana law or any other state of the UnitedStates, or under the laws of the United States.

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ST. LANDRY FIRE PROTECTION DISTRICT NO. Ill


Interest-bearing Deposits

Interest-bearing deposits are stated at cost, which approximates market.

Compensated absences:

Employees of the District who have been employed for one year earn 18 days of vacationpay. After ten years of service, they earn one additional day of vacation pay for each yearworked up to the maximum of 30 days. Neither vacation days nor sick leave can be carriedover to future years; therefore, no accruals for compensated absences are necessary.

Prepaid Items:

Payments made for services that will benefit periods beyond December 31, 2006, arerecorded as prepaid items.

Allowances for Uncollectibles

All receivables that historically represent uncollectible accounts are shown net of anallowance for uncollectible. The allowance for uncollectible accounts in the general fund isestimated at $ 25,000.

Capital Assets

Capital assets, which include property, plant, and equipment, are reported in the applicablegovernmental activity column in the government-wide financial statements. All purchasedfixed assets are valued at cost or estimated historical cost. The amounts of estimated costsare immaterial to these financial statements. Donated fixed assets are stated at their fairmarket value on the date donated.

The District maintains a threshold level of $500 or more for capitalizing capital assets.

Depreciation of all exhaustible capital assets is recorded as an allocated expense in thestatement of activities, with accumulated depreciation reflected in the statement of netassets. Depreciation is provided over the assets' estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of assets is asfollows:

Buildings 40 yearsEquipment 5 yearsVehicles 7 years

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Long-Term Debt

The accounting treatment of long-term debt depends on whether the assets are used ingovernmental fund operations or proprietary fund operations and whether they are reportedin the government-wide or fund financial statements.

All long-term debt to be repaid from governmental resources are reported as liabilities inthe government-wide statements. There is currently no long-term debt owed by the District.

Long-term debt for governmental funds is not reported as liabilities in the fund financialstatements. The debt proceeds are reported as other financing sources and payment ofprincipal and interest reported as expenditures.

Equity Classifications

In the government-wide statements, equity is classified as net assets and displayed in threecomponents:

a. Invested in capital assets, net of related debt - Consists of capital assets includingrestricted capital assets, net of accumulated depreciation and reduced by theoutstanding balance of any bonds, mortgages, notes, or other borrowing that areattributable to the acquisition, construction, or improvement of those assets.

b. Restricted net assets - Consists of net assets with constraints placed on the use eitherby (1) external groups, such as creditors, grantors, contributors, or laws or regulationsof other governments; or (2) law through constitutional provisions or enablinglegislation.

c. Unrestricted net assets - All other net assets that do not meet the definition of"restricted: or "invested in capital assets, net of related debt."

d. In the fund financial statements, governmental fund equity is classified as fundbalance. Fund balance is further classified as reserved and unreserved, withunreserved further split between designated and undesignated. The District's policy isto first apply unrestricted resources when an expense is incurred for purposes forwhich both restricted and unrestricted net assets are available.

Revenues, Expenditures, and Expenses

Program Revenues

Program revenues consist of fees, fines, and charges for services related to governmentalfund activities.

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Expenditures/Expenses

In the government-wide financial statements, expenses are classified by function for bothgovernmental and business-type activities.

In the fund financial statements, expenditures are classified as follows:

Governmental Funds - By Character

In the fund financial statements, governmental funds report expenditures of financialresources.

Note 2. Cash and Interest-Bearing Deposits

For reporting purposes, cash and investments include cash, demand deposits, time deposits,and government backed mortgage securities. The District may invest in United States bonds,treasury notes, or certificates, or time certificates of deposit of state banks having theirprincipal office in the State of Louisiana, or any other federally insured investment. TheDistrict may also invest in shares of any homestead and building and loan association in anyamount not exceeding the federally insured amount. At December 31, 2006 the District hascash and interest bearing deposits totaling $ 2,075,627.

Under state law, these deposits in financial institutions must be secured by federal depositinsurance or the pledge of securities owned by the bank. The market value of the pledgedsecurities plus the federal deposit insurance must, at all times, be equal to the amount ondeposit with the bank. At December 31, 2006, deposits in financial institutions were fullysecured by federal deposit insurance and the market value of securities pledged in theDistrict's name. Deposit balances (bank balance) at December 31, 2006, are secured asfollows:

Bank Balances $ 1.802.678

FDIC/SIPC 200,000Pledged Securities (Category 3) 1.997,500

Total 2.197.500Excess $ 394.822

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Pledged securities in Category 3 include uninsured or unregistered investments for which thesecurities are held by the broker or dealer, or by its trust department or agent, but not in theDistrict's name. Even though the pledged securities are considered uncollateralized(Category 3) Louisiana Revised Statue 39:1229 imposes a statutory requirement on thecustodial bank to advertise and sell the pledged securities within 10 days of being notified bythe District that the fiscal agent had failed to pay deposited funds upon demand.

The District invested in a federal home loan mortgage corporation Freddie note with acurrent market value of $152,285 and a Federal National Management associated note with acurrent market value of $146,514. These investments are secured by the FederalGovernment.

Note 3. 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 District in May or June and are actually billed to the taxpayers in thelatter part of the fiscal year. Billed taxes become delinquent on January 1 of the followingyear and January and February of the ensuing year. The following is a summary of the leviedad valorem taxes:

General corporate purpose:Operations and maintenance 16.30

Tax revenues are recognized in the year they are billed.

Note 4. Receivables

Receivables at December 31, 2006, consist of the following:

General Fund

Ad valorem $2,434,014State Revenue Sharing 175,554Other 57Gross Receivables 2,609,625Less: Allowance for

uncollectibles (25.000)Net total receivables S 2.584.625

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Notes to Financial StatementsNote 5. Capital Assets

Capital asset activity for the year ended December 31,2006 is as follows:

Balance Balance12/31/05 Additions Deletions 12/31/06

Governmental Activities:Capital assets not being

depreciated:Land $ 42,681 $ $ - $ 42,681

Other capital assets:Buildings 854,121 - - 854,121Equipment 1,663,908 164,160 - 1,828,068Totals 2.560,710 164,160 - 2.724,870

Less accumulated depreciationBuildings 414,867 21,473 - 436,340Equipment K421,321 68.862 r 1,490,183Total accumulated depreciation 1.836,188 90,335 : 1,926,523

Governmental activities,capital assets, net S 724.522 S 73.825 $ - S 798.347

Note 6. Pension Plan

Substantially all of the employees of the St. Landry Fire Protection District No. Ill aremembers of the Firefighters Retirement System.

Firefighters Retirement System

Plan description:

The Firefighters Retirement System (the System) is a cost-sharing multiple-employerpublic employee retirement system (PERS).

Membership is mandatory as a condition of employment beginning on date employed ifthe employee is on a permanent basis as a firefighter, not participating in another publiclyfunded retirement system and under age fifty (50) at date of employment. Employees whoretire at or after age 50 with at least 20 years of credited service, or at or after age 55 withat least 12 years of credited service are entitled to a retirement benefit payable monthly forlife, equal to 3-1/3 percent of their average final compensation multiplied by theemployee's years of credited service. Final compensation is the employee's monthlyearnings during the 36 consecutive or joined months that produce the highest average.The System also provides death and disability benefits. Benefits are established by statestatute.

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The Firefighters Retirement System issues a publicly available financial report thatincludes financial statements and required supplemental information. That report may beobtained by writing to Firefighters Retirement System, P. O. Box 94095 Capitol Station,Baton Rouge, LA 70804-9095.

Funding policy:

Plan members are required to contribute 8.0% of their annual covered salary and theDistrict is required to contribute at an actuarially determined rate. The employer's portionrate from January through July 1, 2006 was 18% of annual covered payroll. Theemployer's portion note from July 1, 2006 through December 31, 2006 was 15.5% ofannual covered payroll. The contribution requirements of Plan members are establishedand may be amended by the System's Board of Trustees. The District's contribution to theSystem for the years ended December 31, 2006 was $188,071.

Note 7. Contingent Liability

As of December 31, 2006, the District is not aware of any violation with respect toenvironmental issues, which may arise from holdings the District has in fixed assets.

Note 8. Prior Period Adjustment

The District failed to recognize total ad valorem tax revenue for the year ended December 31,2005. A prior period adjustment was made in the amount of $353,587.

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ST. LANDRY PARISH FIRE PROTECTION DISTRICT NO. IllStatement of Revenues, Expenditures, and Changes in Fund Balance-

Budget (Budgetary Basis) and Actual - General FundYear Ended December 31,2006

Revenues:Taxes:

Ad valoremIntergovernmentalInterest incomeNet increase (decrease) in fair

value of investmentsOther

Total revenues

Expenditures:Current:

Public safetyCapital outlay

Total expenditures

Excess (deficiency) of revenuesover expenditures

Other financing sources (uses):Proceeds from sale of capital

assetsTotal other financing sources

(uses)

Excess of revenues and othersources over expenditures and otheruses

Fund balance, beginning

Fund balance, ending

OriginalBudget

$ 2,308,565239,000

36,500

40,0002,624,065

1,830,100190,000

2,020.100

603,965

FinalBudget

$2,058,517279,185199,000

40.5652,577,267

1,852,350140.000

1.992.350

584,917

Actual

$2,407,481253,191

78,020

(885)62.593

2.800,400

1,982,519164,160

2.146,679

653,721

VarianceFavorable

(Unfavorable)

$ 348,964(25,994)

(120,980)

(885)22,028

223.133

(130,169)(24.160)

C154.329)

68,804

603,965

1,439,652

$ 2.043.617

584,917

1,430,854

$2.015.771

653,721

3.819,290

$4.473.011

68,804

2,388.436

$ 2.457.240

- 23 -

ST. LANDRY PARISH FIRE PROTECTION DISTRICT NO. IllBudgetary Comparison Schedule - General Fund

Year Ended December 31, 2006

Current:Public safety -

Salaries and related benefitsCivil Service BoardVolunteer fire stations and firemenPer diem to board membersTelephone and utilitiesInsuranceUniforms and cleaningEquipment maintenance and

suppliesBuilding maintenance and suppliesProfessional feesOffice suppliesPension expenseOther

Capital outlays

Total expenditures

OriginalBudget

$ 1,145,0004,0009,6008,800

39,500252,000

7,500

75,00025,00017,0004,500

210,00032,200

190,000

FinalBudget

$ 1,159,6002,0001,8006,800

43,000244,000

6,200

146,00017,00017,0006,200

190,00012,750

140,000

Actual

$ 1,196,3912,080

2987,276

40,765247,502

6,965

122,63320,22616,9905,678

265,55050,165

164,160

VarianceFavorable

(Unfavorable)

$ (36,791)(80)

1,502(476)

2,235(3,502)

(765)

23,367(3,226)

10522

(75,550)(37,415)(24,160)

$2.020.100 $ 1.992.350 S 2.146.679 $ (154.329)

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VIGE, TUJAGUE ^°> NOELA CORPORATION OF CERTIFIED PUBLIC ACCOUNTANTS

151 N. 2*e STREETP. 0. BOX 1006

EUNICE, LOUISIANA 70535SHIRLEY VIGE, JR., C.PAFRANK G. TUJAGUE, C.P.A.

DOMINIQUE M. NOEL C.PA 337-4578743

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCEAND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTSPERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of CommissionersSt. Landry Parish Fire Protection District No. IllOpelousas, Louisiana

We have audited the financial statements of the St. Landry Parish Fire Protection District No. Ill as ofand for the year ended December 31, 2006, and have issued our report thereon dated May 31,2007. Weconducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the St. Landry Parish Fire Protection District No.Ill's internal control over financial reporting as a basis for designing our auditing procedures for thepurpose of expressing our opinion on the financial statements, but not for the purpose of expressing anopinion on the effectiveness of the St. Landry Parish Fire Protection District No. Ill's internal controlover financial reporting. Accordingly, we do not express an opinion on the effectiveness of the St.Landry Parish Fire Protection District No. Ill's internal control over financial reporting.

A control deficiency exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent or detectmisstatements on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, orreport financial data reliably in accordance with generally accepted accounting principals such that thereis more than a remote likelihood that a misstatement of the entity's financial statements that is more thaninconsequential will not be prevented or detected by the entity's internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results inmore than a remote likelihood that a material misstatement of the financial statements will not beprevented or detected by the entity's internal control.

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Our consideration of internal control over financial reporting was for the limited purpose described inthe first paragraph of this section and would not necessarily identify all deficiencies in internal controlthat might be significant deficiencies or material weaknesses. We did not identify any deficiencies ininternal control over financial reporting that we consider to be material weaknesses, as defined above.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether St. Landry Parish Fire Protection District No.Ill's financial statements are free of material misstatements, we performed tests of its compliance withcertain provisions of laws, regulations, contracts and grant agreements, noncompliance with which couldhave 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 our audit, andaccordingly, we do not express such an opinion. The results of our tests disclosed one instance ofnoncompliance or other matters that is required to be reported under Government Auditing Standards.

This report is intended solely for the information and use of management, federal awarding agencies andpass-through entities, and others within the entity. It is not intended to be and should not be used byanyone other than these specified parties.

outVige, Tujague & Noel, CPA'sMay 31,2007

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ST. LANDRY PARISH FIRE PROTECTION DISTRICT NO. IllSchedule of Findings and Questioned Costs


We have audited the financial statements of St. Landry Parish Fire Protection District No. Ill as of andfor the year ended December 31, 2006 and have issued our report dated May 31, 2007 We conductedour audit in accordance with auditing standards generally accepted in the United States of America andthe standards applicable to financial audits contained in Government Auditing Standards, issued by theComptroller General of the United States. Our audit of the financial statements as of December 31,2006 resulted in an unqualified opinion.

Section I Summary of Auditors' Reports

A. Report on Internal Control and Compliance Material to the Financial Statements

Internal ControlMaterial Weaknesses Yes _X_No Significant Deficiencies Yes X None reported

ComplianceCompliance Material to Financial Statements X Yes No

No separate management letter was issued.

Section II Financial Statement Findings

2006-1 Budgeting

Condition: The St. Landry Parish Fire Protection District No. Ill did not comply with theLouisiana Local Government Budget Act.

Criteria: The Louisiana Local Government Budget Act requires that the fire district adopt theproposed budget before the beginning of the fiscal year and document approval in the boardminutes. The budget must also be monitored during the fiscal year and amended when certainconditions occur.

Cause: The fire district prepared amendments to the budget to avoid the 5% variation betweenexpected and actual revenues and expenses. However, some unexpected expenses were notincluded in the amended budget.

Effect: The fire district violated the Louisiana Local Government Budget Act. In addition, theeffectiveness of the fire district's budgetary controls over revenues and expenses are weakened.

Recommendation: We recommend that the fire district follow the provisions of the Budget Act.

Section III Internal Control and Compliance Material to Federal Awards

There were no federal awards for the year ended December 31, 2006.

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ST. LANDRY PARISH FIRE PROTECTION DISTRICT NO. IllSchedule of Prior Year FindingsYear Ended December 31,2006

I Internal Control and Compliance Material to the Financial Statements

None reported.

II Internal Control and Compliance Material to Federal Awards

The prior year's report did not include any federal awards.

III Management Letter

The prior year's report did not include a management letter.

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ST. LANDRY PARISH FIRE PROTECTION DISTRICT NO. IllSchedule of Compensation Paid to Board Members


Per Diem Mileage TotalArmand Declouette $ 1,120 $ 137 $ 1,257Charles LeBlanc 1,070 106 1,176Clifford Thierry 1,180 - 1,180Charles Dore 990 58 1,048GregDoucet 670 36 706James Boutte 910 53 963Mitch Martin 800 40 840Steve Bordelon - 21 21Perry Martin - 44 44Charles Breaux : 40 40

Total S 6.740 $ 535

The schedule of compensation paid to board members was prepared in compliance with HouseConcurrent Resolution No. 54 of the 1979 Session of the Louisiana Legislature. The board membersreceive $80 for each regular or special meeting they attend and $30 for each committee meeting theyattend.

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