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LAKEVIEW CRIME PREVENTION DISTRICT

Financial Statements as of December 31,2011 and For the Year Then Ended

and Independent Accountants' Audit Report

Jncier provisions of state law. this report is a pubiic document Acopy ofthe report has been submitted to the entity and other appropnate public officials The report is available for public inspection at the Baton Rouge office of the LegisIativeAuditor and where appropnate at the office of the pansh clerk of court

Release Date APR 18 ?ni?

LAKEVIEW CRIME PREVENTION DISTRICT

TABLE OF CONTENTS

Page

INDEPENDENT AUDITORS' REPORT 1

MANAGEMENT'S DISCUSSION AND ANALYSIS 2

FINANCIAL STATEMENTS AS OF DECEMBER 31,2011 AND FOR THE YEAR THEN ENDED:

Statement of Net Assets / General Fund Balance Sheet 4

Statement of Activities / Statement of Revenues, Expenditures and Changes in Fund Balance 5

Notes to Financial Statements 6

REPORT ON COMPLLWCE AND INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCLVL STATEMENTS PERFORMED IN ACCORDANCE WTTH GOVERNMENT AUDITING STANDARDS 10

SCHEDULE OF CURRENT YEAR FINDINGS 12

SCHEDULE OF PRIOR YEAR FINDINGS 13

Silva Gurtner & Abney Certified Pubhc Accountants & Consultants

Brent A Silva,CPA Craig A Silva CPA* Thomas A Gurtner. CPA* Kenneth J Abney, CPA, MS Tax*

*Liintted Ltabilitf Cospaues

To the Board of Commissioners Lakeview Crime Prevention District New Orleans, Louisiana

INDEPENDENT AUDITORS' REPORT

We have audited the accompanying general-purpose financial statements of the Lakeview Crime Prevention District as of and for the year ended December 31, 2011, as listed in the table of contents These general-purpose financial statements are the responsibility of the Lakeview Crime Prevention District's management Our responsibility is to express an opinion on these general-purpose financial statements based on our audit

We conducted our audit m accordance with auditing standards generally accepted in the United States of Amenca and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General of the United States Those standards require that we plan and perfomi the audit to obtain reasonable assurance about whether the financial statements are free of matenal misstatement An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the general-purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluatmg the overall financial statement presentation. We beheve that our audit provides a reasonable basis for our opinion

In our opimon, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Lakeview Crime Prevention District as of December 31,2011, and the results of its operations for the year then ended in conformity with accounting prmciples generally accepted m the Umted States of Amenca.

In accordance with Govemment Auditmg Standards^ we have also issued a report dated March 20, 2012, on our consideration of the Lakeview Crime Prevention District's mtemal control and its compliance with laws and regulations. The purpose of that report is to describe the scope of our testmg and not to provide an opinion on the mtemal control over financial reporting or on compliance. This report is an mtegral part of an audit performed in accordance with Government Auditing Standards and should be read m conjunction with this report in considenng tbe results of our audit

4330 Dumame Street 200-B Greenleaves Blvd. 900 Wiage Lane New Orleans, LA 70119 Mandeville, LA 70448 PC Box 50, Pass Christian, MS 39571

(504) 833-2436 (0) • (504) 484-0807 (F) (985) 626-8299 (O) • (985) 626-9767 (F) (985) 626-8299 (0) • (985) 626-9767 (F)

Linuted Liability Company www.silva-cpa com

Management's Discussion and Analysis, beginning on page 2, is not a reqmred part of the financial statements, but is supplemental information required by the Governmental Accountmg Standards Board. We have applied certam limited procedures, which consist primarily of inquiries of management regarding mediods of measurement and presentation ofthe required supplemental information. However, we did not audit the information and express no opinion on it.

Si£i/^ Q W O P ^ ^ fiif^, LLC March 20,2012

LAKEVIEW CRIME PREVENTION DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS

DECEMBER 31,2011

Management's Discussion and Analysis (•'MD&A'^ for the Lakeview Crime Prevention District (the ''District^ is designed to'

• assist the reader in focusing on significant financial issues,

• provide an overview ofthe District's financial activities;

• identify changes in the District's financial position and results of operations and assist the user m determinmg whether financial position has improved or deteriorated as a result of the year's operations;

• identify any significant variations fi-om tiae original, amended, and final budget amounts and include any currently known reasons for any variations that are expected to have a significant effect on future services or liquidity; and

• identify other significant issues.

The infonnation contained herein should be read in conjunction with the financial statements, notes thereto and other required supplemental mformation taken as a whole.

The MD&A is required supplementary information that introduces the reader to the general-purpose financial statements and provides an overview of the District's financial activities The District's general-purpose financial statements consist of the followmg components, the District's balance sheet, statement of revenue, expenditures and changes in fund balance and the notes to the financial statements

OVERVIEW OF 2011 OPERATIONS

Operating capital for 2011 was received fi'om assessments on property owners ofthe District as defined by Act 200 by the Louisiana Legislature Each developed parcel owner h assessed a $110 fee which is collected by the City of New Orleans and remitted to the District. The City of New Orleans charges a 1% collection fee, which is deducted prior to remittance. The Distnct also earns mterest income on funds on deposit During 2009 the Board of Commissioners voted to amend Act 200 to assess all parcels in the district an increased Crime Prevention Fee. The recommendation was accepted by the City of New Orleans and the measure appeared on a 2010 ballot and was passed by a margm of 64% for and 36% against A parcel fee increase from the current fee of $100 to a maximum of $150 was approved by the residents in 2008. The Board of Commissioners mcreased the fee by $10 per parcel to SI 10 per parcel in 2011.

LAKEVIEW CRIME PREVENTION DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS

DECEMBER 31,2011

The Board of Commissioners of the Lakeview Crime Prevention District has directed all revenues to providing the maximum security presence as directed by statute. For 2011 patrols were manned by two officers servmg four hour shifts twenty four hours per day seven days per week. Additional patrols are scheduled as deemed necessary. Surpluses fi'om operations are retained by the District and have been designated exclusively for patrols.

The Board has deemed it necessary to hold secunty at this level for the near fiiture as it is unknown what percentage of residents will return to the District and also in what time fi-ame the City of New Orleans will be able to collect and then distribute whatever funds are received to the District in 2012. Because of these two unknowns, the level of security will be reevaluated to determme the level that is most fiscally prudent for the District m 2012, as these facts become known. In addition, the New Orleans Police Department continues to incur significant overtime for its officers, consequentiy limiting the availability of officers for detail shifts for the District

All 2011 meetmgs have been conducted with parliamentary procedures strictiy enforced by LCPD attomey m attendance.

LAKEVIEW CRIME PREVENTION DISTRICT STATEMENT OF NET ASSETS / GENEItAL FOND BALANCE SBQCET

FOR THE YEAR ENDED DECEMBER 31,2011

ASSETS

Cash and Cash Equivalents $ 81,035

Prepaid Expense 1,410

Total assets $ 82,445

LIABELITIES

Accounts Payable $ 520

Total liabilities 520

NET ASSETS / FUND BALANCE 81,925

TOTAL LIABILrriES AND NET ASSETS (FUND BALANCE) $ 82,445

See accompanying independent auditors' report and notes to financial statements. 4

LAKEVIEW CRIME PREVENTION DISTRICT STATEMENT OF ACTIVmES / STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN GENERAL FUND BALANCE BUDGET (GAAP BASIS) VS. ACTUAL

FOR THE YEAR ENDED DECEMBER 31,2011

REVENUES Parcel Fees Interest

Actual

$ 592,422 136

Budgeted

$ 544,500 1,000

Variance

S 47,922 (864)

Total revenues

EXPENSES Direct Expenses

Patrols Police Sedans, Radios & Equipment

Total direct expenses

Administrative Ejq^enditures Accountmg Legal Fees Insurance Mobile Phone Newsletter/Web Site Miscellaneous

Total administrative expenses

Total expenses

EXCESS (DEFICIT) OF EXPENDITURES OVER REVENUES

592,558

543,680 26,312

569,991

32,828

602,820

NET ASSETS / FUND BALANCE - Beginning of Year

NET ASSETS / FUND BALANCE - End of Year $ 81,925

545,500

555,386 35,000

590,386

37,050

627,436

47,058

11,706 8,689

20,395

8,580

4,371

17,364

2,467

-

46

8,000

4,000

18,000

3,000

4,000

50

(580)

(371)

636 533

4,000

4

4,222

24,616

(10,261) $ (81,936) $ 71,675

92,186

See accompanying independent auditors' report and notes to financial statements 5

LAKEVIEW CRIME PREVENTION DISTRICT NOTES TO FINANCIAL STATEMENTS

DECEMBER 31,2011

NOTE A - INTRODUCTION

The Lakeview Came Prevention District (the District) was created as a public body by Acts of the Louisiana Legislature, 1997, No 1132, La. R.S. 33:9091.1, to aid m crime prevention and to add to the security of District residents by providing an increase m the presence of law enforcement personnel in the District.

The Board of Commissioners is constituted by eleven (11) appointed members. The president of the Lakeview Civic Improvement Association is an ex officio member. The board of directors of the Lakeview Civic Improvement Association appoints four members. The member or members of the Louisiana House of Representatives who represent the area which comprises the district appoints one member The member or members ofthe Lomsiana Senate who represent the area which comprises the distnct appoint one member. The assessor for the second municipal district appoints one member. The assessor for the seventh mumcipal district appoints one member. The mayor appomts one member. The council member or council members who represent the district appoint one member. All members ofthe board are required to own property within the distnct The terms ofthe members are concurrent with the respective ^pointing authority Board members are not compensated or reimbursed for expenses.

The District services all parcels located in the geographic area it serves. The District has no paid employees and contracts with the City of New Orleans for off duty police officers for patrolling

The govemmg authonty of the City of New Orleans is authonzed to impose and collect a parcel fee within the Distnct The amount of the fee is determined by an adopted resolution of the board of commissioners ofthe Distnct The fee, however, cannot exceed one hundred dollars per parcel per year. The amount of the fee may be increased, but may not exceed one hundred fifty dollars per parcel per year.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES

Basis of Presentation - The accompanying general-purpose financial statements of the Distnct have been prepared m conformity with accounting principles generally accepted in the United States as applied to govenunental units. The Govemmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing govemmental accountmg and financial reporting principles. The more significant ofthe government's accounting principles are described below.

Basic Financial Statements - Government-Wide Statements - The District's basic financial statements mclude both govemment-wide (reporting the District as a whole) and fund financial statements (reportmg the District's major funds) Both the govemment-wide and fimd financial statements categorize primary activities as either govemmental or business type There were no activities ofthe District categorized as a business type activity.

In the government-wide Statement of Net Assets, the govemmental activity column (a) is presented on a consolidated basis by column, (b) and is reported on a full accrual, economic resource basis

LAKEVIEW CRIME PREVENTION DISTRICT NOTES TO FINANCIAL STATEMENTS

DECEMBER 31,2011

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Basic Financial Statements - Government-Wide Statements (continued} - The govemment-wide Statement of Activities reports both the gross and net cost of the Distnct's function. The Statement of Activities reduces gross expenses by related program revenues, operatmg and capital grants. Program revenues must be directiy associated with the function Operating grants include operating-specific and discretionary (either operating or capital) grants while capital grants reflects capital-specific grants.

The net costs (by function) are normally covered by general revenue (mterest and investment earnings, etc.).

The District does not allocate indirect costs

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

Measurement Focus, Basis of Accounting, and Financial Statement Presentation - The govemment-wide financial statements are reported using the economic resources measurement focus and the accmal basis of accounting, as are the propnetary fund statements. Revenues are recorded when eamed and expenses are recorded when a liability is incurred, regardless of the timmg of related cash fiows. Property taxes are recognized as revenues in the year for v^ch they are levied. Grants and sunilar items are recognized as revenue as soon as all eligibility requirements unposed by the provider have been met

Governmental fimd financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the govemment considers revenues to be available if they are collected withm 60 days of the end of the current fiscal penod. E?q>enditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due

All revenue items are considered to be measurable and available only when cash is received by the govemment Parcel fees are recorded as received from the City of New Orleans.

The District reports the general govemmental fund only. The General Fund is the entity's primary operating fund It accounts for all financial resources ofthe entity, except those required to be accounted for m another fund.

Fund Equity - In the fund financial statements, govemmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose Designations of fund balance represent tentative management plans that are subject to change.

LAKEVIEW CRIME PREVENTION DISTRICT NOTES TO FINANCIAL STATEMENTS

DECEMBER 31,2011

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Use of Estimates - The preparation of financial statements in confonnity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and Uabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could dififer fix)m those estimates.

Reconciliations of Government-Wide and Fund Financial Statements - There are no differences between the government-wide and fund fmancial statements.

NOTE C - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

Budget - In accordance with the Louisiana Local Govemment Budget Act, the procedures used by the District in establishing the budgetary data refiected in the financial statements include pubhc notices of the proposed budget, public inspections, and public heanngs. The District then legally adopts the budget Budgeted amounts for the General Fund included in the accompanying statements are as onginally adopted by the Distnct for the year 2011

NOTE D - CASH AND CASH EQUIVALENTS

At December 31, 2011, the District had cash and cash equivalents (book balances) totaling $81,035 at a local financial institution. This amount consists of demand deposits.

These deposits are stated at cost, which approximates market Under state law, these deposits (or the resulting bank balances) must be secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank. The market value of the pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agent. These securities are held m the name of the pledging fiscal agent bank m a holdmg or custodial bank that is mutually acceptable to both parties

The funds were held m a demand deposit account at a local financial institution. These deposits are secured fix)m risk by $250,000 of federal deposit msurance. At times the deposits may exceed the insured amount As of December 31,2011, the deposits did not exceed the amount of insurance provided by the Federal Deposit Insurance Corporation (FDIC). The Distnct has not expenenced any losses and believes it is not exposed to any significant credit nsk to cash

NOTE E - LITIGATION AND CLAIMS

At December 31,2011, the District was mvolved in no litigation nor is the District aware of any claims

LAKEVIEW CRIME PREVENTION DISTRICT NOTES TO FINANCIAL STATEMENTS

DECEMBER 31,2011

NOTE F - SUBSEQUENT EVENTS

Management has evaluated subsequent events through the date that the fmancial statements were available to be issued, March 20, 2012, and determined that no events occurred that require disclosure. No subsequent events occurring after this date have been evaluated for inclusion m these financial statements

ilva Gurtner & Abney Certified Public Accountants & Consultants

BrentASilva,CPA Craig A Silva,CPA* Thomas A Gurtner, CPA* Kenneth J Abney. CPA, MS Tax"

Ijmited LmlHliiy Compoaies

To the Board of Commissioners Lakeview Crime Prevention Distnct New Orleans, Louisiana

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

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERimENTAimillNGSTAl^AKDS

We have audited the general-purpose financial statements of the Lakeview Cnme Prevention District as of and for the year ended December 31,2011, and have issued our report thereon dated March 20,2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contamed in Government Auditing Standards, issued by the Comptroller General ofthe Umted States

Intemal Control Over Financial Reporting

In planning and performing our audit, we considered Lakeview Oime Prevention Distnct's mtemal control over financial reportmg as a basis for designing our auditing procedures for the purpose of expressing our opinion on the general-purpose financial statements, but not for the purpose of expressing an opimon on the effectiveness ofthe Distnct's intemal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness ofthe Distnct's internal control over financial reporting.

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 peiforming their assigned functions, to prevent, or detect and correct imsstatements on a tunely basis. A material weakness \s a deficiency, or a combination of deficiencies, m mtemal control such that there is a reasonable possibility tiiat a matenal misstatement ofthe entity's financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of intemal control over financial reportmg was for the limited purpose descn'bed m the first paragraph of this section and was not designed to identify all deficiencies m mtemal control over financial reporting that might be deficiencies, sigmficant deficiencies, or matenal weaknesses We did not identify any deficiencies in mtemal control over financial reporting that we consider to be material weaknesses, as defined above

4330 Dumaine Street 200-B Greenleaves Blvd. 900 Village Lane New Orleans. LA 70119 Mandeville, LA 70448 PO Box 50. Pass Christian, MS 39571

(504) 833-2436 (O) • (504) 484-0807 (F) (985) 626-8299 (O) • (985) 626-9767 (F) (985) 626-8299 (O) • (985) 626-9767 (F)

Lmuted Liabihty Company www silva-cpa.com

Compliance

As part of obtaining reasonable assurance about whether Lakeview Crime Prevention District's general-purpose financial statements are fi^ee of matenal misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Govemment Auditing Standards v^ich are described in the accompanymg schedule of noncompliance with laws and regulations.

The District's response to the finding identified m our audit is described in the accompanying schedule of findings and responses. We did not audit the District's response and, accordingly, we express no opinion on it

This report is mtended for the information ofthe Lakeview Crime Prevention Distnct's management, the City of New Orleans and the Legislative Auditor for the State of Louisiana and should not be used by anyone other that these specified users.

ULiif. Q w O i ^ ^ A i i ^ , LLC March 20,2012

LAKEVIEW CRIME PREVENTION DISTRICT SCHEDULE OF CURRENT YEAR FINDINGS

FOR THE YEAR ENDED DECEMBER 31,2011

COMPLIANCE AND OTHER MATTERS

NONE

12

LAKEVIEW CRIME PREVENTION DISTRICT SCHEDULE OF PRIOR YEAR FINDINGS

FOR THE YEAR ENDED DECEMBER 31,2010

COMPLIANCE AND OTHER MATTERS

FINDING 2010-1: Condition' Management failed to amend the Distnct's budget when actual revenues and

expenditures varied firom budgeted amounts by more than 5%.

Criteria. Louisiana Revised Statute 33:9091.1 requires that the District revise its budget when revenues fail to meet expectations or expenditures will exceed ejqjectations by more than five percent

Cause of Condition- The District's financial information is reviewed in detail at each meeting of the District's Board, which, based on new information, determines whether and how to adjust its expenditures during the course of each year. During 2010, the Board monitored the District's financial condition and results and took appropriate action, but did not adopt any formal resolutions revising its 2010 budget

Effect ofthe Condition: The District was in technical non-compliance with RS 33:9091.1 for 2010

Recommendation- The Board ofthe District should amend its budget when it is determined that revenues and/or expenditures will have an unfavorable vanance of more than 5%.

Client Response, Interest Revenue: The budget was based on 2009 interest eamed. Market rates substantially decreased resulting in reduced revenue

Patrols Budgeted amounts are calculated based on the maximum funds available m the budget. Actual patrols are utilized based on officers available and secunty needs ofthe District Excess funds are carried to the next fiiscal year and mcluded in budgeted funds available for tiiat penod.

Police Sedans, Radios & Equipment The vehicle was ordered for purchase during the penod but was not received until 2011.

Legal Fees- During the year the contract with the City of New Orleans was reviewed by the City as part of their intemal review. Required responses by the Distnct's attomey mcurred additional fees

Insurance: The Board negotiated lower insurance fees based on the District's :^vorable loss record. The budgeted amount was based on 2009 actual amounts

13