city of eunice - louisiana...eunice, louisiana 70535 shirley vige, jr., c.p.a. frank g. tujague,...

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CITY OF EUNICE, LOUISIANA

Financial Report

Year Ended June 30, 2005

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Under provisions of state law, this report is a publicdocument. A copy of the report has been submitted tothe entity and other appropriate public officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish, clerk of court.

Release Date/

/AT/-/—/-

m TABLE OF CONTENTS

*"' nPage*• No.

Independent Auditor's Report 1 -2

ta BASIC FINANCIAL STATEMENTS

; Statement of net assets 5IH Statement of activities 6-7

. FUND FINANCIAL STATEMENTSH

Balance sheet - governmental fund 10-11P-I Reconciliation of the governmental funds balance sheet^ to the statement of net assets 12

Statement of revenues, expenditures, and changes in fund*•• balances - governmental funds 14-15hH Reconciliation of the statement of revenues, expenditures,

and changes in fund balances of governmental funds to thef" statement of activities 16• Statement of net assets - proprietary funds 17

Statement of revenues, expense, and changes in fund netP assets - proprietary funds 18** Statement of cash flow - proprietary funds 19-20

Statement of net assets - fiduciary fund 21Statement of changes in net assets - fiduciary fund 22

Notes to basic financial statements 23-46

** REQUIRED SUPPLEMENTARY INFORMATIONp. Budgetary comparison schedules:i General Fund 48

Sales Tax Special Revenue Fund 49*- Recreation Department Construction 50^ City of Eunice Sinking Fund 51

P- OTHER SUPPLEMENTARY INFORMATION

OTHER FINANCIAL INFORMATION

E Major Governmental Funds -General Fund - budgetary comparison schedule - revenues 54General Fund - budgetary comparison schedule - expenditures 55-57

• Nonmajor Governmental Funds -Balance sheet 59Statement of revenues, expenditures, and changes in fund balances 60

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NONMAJOR SPECIAL REVENUE FUNDS •Combining balance sheet-Special Revenues Funds 62-63Combining statement of revenues, expenditures, and changes

in fund balances-Special Revenues Funds 64-65Statement of revenues, expenditures, and changes in fund balances -

budget (GAAP basis) and actual - Criminal Task Force 66 ffStatement of revenues, expenditures, and changes in fund balances -

budget (GAAP basis) and actual - Public Safety Testing Fund 67 gStatement of revenues, expenditures, and changes in fund balances - Q

budget (GAAP basis) and actual - Court Appearance Bond Fund 68Statement of revenues, expenditures, and changes in fund balances - •

budget (GAAP basis) and actual - St. Landry & Acadia Parish Fire Districts 69 |Statement of revenues, expenditures, and changes in fund balances-

budget (GAAP basis) and actual- Witness Fees Fund 70Statement of revenues, expenditures, and changes in fund balances -

budget (GAAP basis) and actual - Law Enforcement Block Grant 71NONMAJOR DEBT SERVICE FUNDS •

Balance Sheet-Debt Service Fund 74 IStatement of revenues, expenditures, and changes in fund balances-

budget (GAAP basis) and actual-Debt Service Fund 75 IENTERPRISE FUNDS •

Statement of revenues, expenses, and changes in net assets -Utility Fund 78 I

COMPLIANCE AND INTERNAL CONTROL

Report on Compliance and Other Matters and on Internal Control over FinancialReporting Based on an Audit of Financial Statements Performed fl

in accordance with Government Auditing Standards 79-80 3

Report on Compliance With Requirements Applicable to Each Major Program and •on Internal Control Over Compliance in Accordance With OMB Circular |No. A-133 81-82

Schedule of Expenditures of Federal Awards 83 •Notes to the Schedule of Expenditures of Federal Awards 84 |

Schedule of Findings and Questioned Costs 85-86 •

Status of Prior Years Findings and Questioned Costs 87-89

Schedule of Per Diem Paid to Council Members 90 •

VIGE^TUJAGUEA CORPORATION OF CERTIFIED PUBLIC ACCOUNTANTS

151 N. 2m STREET

P. 0. BOX 1006

EUNICE, LOUISIANA 70535

SHIRLEY VIGE, JR., C.P.A.FRANK G. TUJAGUE, C.P.A.

DOMINIQUE H.NOEL, C.P.A.

TELEPHONE:337-457-9324

FAX:337-457-8743

INDEPENDENT AUDITOR'S REPORT

The Honorable Mayor Lynn LeJeuneand Members of the CouncilCity of Eunice, Louisiana

We have audited the accompanying financial statements of the governmental activities, the business-typeactivities, each major fund, and the aggregate remaining fund information of the City of Eunice, Louisiana,as of and for the year ended June 30, 2005, which collectively comprise the basic financial statements aslisted in the table of contents. These financial statements are the responsibility of the City of Eunice,Louisiana's management. Our responsibility is to express an opinion on these financial statements based onour audit.

We conducted 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. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, the business-type activities, each major fund, andthe aggregate remaining fund information of the City of Eunice, Louisiana, as of June 30, 2005, and therespective changes in financial position and cash flows, where applicable, thereof for the year then ended inconformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated November 4, 2005, Hon our consideration of the City of Eunice, Louisiana's internal control over financial reporting and on ourtests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and othermatters. The purpose of that report is to describe the scope of our testing of internal control over financial Hreporting and compliance and the results of that testing and not to provide an opinion on the internal controlover financial reporting or on compliance. That report is an integral part of an audit performed in accordance gwith Government Auditing Standards and should be considered in conjunction with this report in Jconsidering the results of our audit.

The City of Eunice, Louisiana has not presented management's discussion and analysis that the (|Governmental Accounting Standards Board has determined is necessary to supplement, although notrequired to be part of, the basic financial statements. M

Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the City of Eunice, Louisiana's basic financial statements. The accompanying schedule of •expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of •Management and Budget Circular A-133, Audits of States, Local Governments, and Non-ProfitOrganizations, and is also not a required part of the basic financial statements of City of Eunice, Louisiana. IThe other supplementary information on pages 54 through 86 is presented for purposes of additional analysis •and is not a required part of the basic financial statements. Such information, except for the portion marked(unaudited) on which we express no opinion, has been subjected to the auditing procedures applied in the •audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation m

to the basic financal statements taken as a whole. _

*Vige & TujagueNovember 4, 2005

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BASIC FINANCIAL STATEMENTS

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CITY OF EUNICE, LOUISIANAStatement of Net Assets

June 30, 2005

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

AccountsTaxesOther

Due from governmental unitsPrepaid itemsRestricted assets:

CashCapital assets:

Depreciable (net)Non Depreciable

Total assets

Liabilities:Accounts payableAccrued liabilitiesCompensated absences payablePayable from restricted assets-

Customers' depositsRetainage PayableNon-current liabilities

Due within one year:Bonds payableCapital lease obligation

Due in more than one year:Compensated AbsencesBonds payableTotal liabilities

Net Assets:Investment in capital, net of related debtRestricted for prepaid itemsRestricted for debt serviceUnrestrictedTotal net assets

Governmental Business-TypeActivities Activities Total

$ 4,528,940500,344

4,7752,587

443,072269,34683,979

-

5,270,3561,298.01312,401.412

148,566468,4765,247

-97,443

170,0003,803

51,0002,630,0003,574,535

6,564,56683,979278,578

1,899,754J 8.826.877

$ 356,240-

312,4963,523

101,244124,88832,800

200,000

8,053,386-

9,184,577

209,0606,0215,501

240,160-

.-

_

-460.742

8,053,386--

670,449$ 8.723.835

$ 4,885,180500,344

317,2716,110

544,316394,234116,779

200,000

13,323,7421.298,013

21,585.989

357,626474,49710,748

240,16097,443

170,0003,803

51,0002,630,0004.035,277

14,617,95283,979278,578

2.570.203$ 17.550.712

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

5

ActivitiesGovernmental activities:General governmentPublic safety:

PoliceFire

StreetsCulture and recreationSanitationAirportInterestTotal governmental activities

Business-type activitiesGasSewerTotal business-type activities

Total

CITY OF EUNICE, LOUISIANAStatement of Activities

For the Year Ended June 30, 2005

Program Revenues

murn

mm

Fees, Fines, Operating Capitaland Charges Grants and Grants and

Expenses for Services Contributions Contributions

$ 1,620,006 $ 826,489

2,262,440 134,873803,591862,187854,074 49,20052,38146,69880.436 :

6.581.813 1,010,562

1,975,527 2,281,5041.091.845 1.301,4783.067.372 3.582.982

$ 1,000

11,567

32,841

$

48,228

45,408

782,295

830,523

$ 45.408

General revenues:Taxes -

Property taxes, levied for general purposeSales and use taxes, levied for general purposesPayment in lieu of taxesFranchise and chain store taxes

Grants and contributions not restricted to specific programs -State sources

Sale of capital assetInterest and investment earningsMiscellaneous

TransfersTotal general revenues and transfersChange in net assets

Net assets -July 1,2004Net assets - June 30, 2005


Net (Expense) Revenues andChanges in Net Assets

Total

$ (792,517)

(2,067,772)(803,591)(862,187)(772,033)(52,381)735,597

fe (80.436) - (80.436)(4.695.320)

F"

305,977209.633515.610

(4.179,710)

E

GovernmentalActivities

(792,517)

(2,067,772)(803,591)(862,187)(772,033)

(52,381)735,597(80.436)

(4,695.320)

-

Business-TypeActivities

$

-------_

305,977209,633515,610

(4,695.320)

528,8443,616,320

7,600574,736

_

3,48986,456

621,871670,700

6,110,0161,414,6967.412,1818.826.877

515,610

---

365,882-

6,90210,236

(670.700)(287,680)227,930

8.495.905$ 8.723.83.5

528,8443,616,320

7,600574,736

365,8823,489

93,358632,107

5.822,3361,642,626

15.908.086$ 17.550.712

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FUND FINANCIAL STATEMENTS (FFS)

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CITY OF EUNICE, LOUISIANABalance Sheet-Governmental Funds

June 30,2005

ASSETS

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

AccountsTaxesOther

Due from governmental unitsDue from other fundsPrepaid items

Total assets

LIABILITIES AND FUND BALANCES

Liabilities:Accounts payableAccrued liabilitiesDue to other fundsRetainage Payable

Total liabilitiesFund balance:

Reserved for prepaid itemsReserved for debt serviceUnreserved, undesignated

Total fund balances

Total liabilities and fund balances

GeneralFund

$ 329,096

Sales TaxSpecial Revenue

RecreationComplex Capital

Project Fund

S 557.930

$ 137,191107,147198,805

443.143

83,979

30.808114.787

$ 1,266,207 $ 2,514,939500,344

2,5871,400

114,99025,87883.979

-90,944

-156,760

-

$ 11,02373,589

97.443182.055

1,832.2001,832.200

$ 557.930 $ 2.014.255

*

S 2.014.255 $ 2.514.939 I

2,514.9392.514.939

$ 2.514.939

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pL City of Eunice Other

Sinking Fund GovernmentalST-1997 Funds

$ 135,264

$ 135.264

$ 283,434

4,775

Total

$ 4,528,940500,344

4,7752,587

92,344114,990182,63883.979

$ 288.209

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--

82,843-

82,843

52,421-

52,421

$ 453-

24,878-

25,331

226,15736,721262,878

$ 148,667180,736306,52697,443733,372

83,979278,578

4,414,6684,777,225

$ 135.264 $ 288.209

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CITY OF EUNICE, LOUISIANAReconciliation of the Governmental Funds Balance Sheet

to the Statement of Net AssetsJune 30,2005

Total fund balances for governmental funds at June 30, 2005

Total net assets reported for governmental activities in thestatement of net assets is different because:

Capital assets used in governmental activities are not financialresources and, therefore, are not reported in the funds. Thoseassets consist of:

Land 1,298,015Building, net of $3,482,521 accumulated depreciation 3,614,423Infrastructure, net of $12,665 accumulated depreciation 696,220Equipment, net of $803,977 accumulated depreciation 531,749Auto, net of $ 1,331,499 accumulated depreciation 427,962

Sales taxes which were not measurable at year end and notconsidered available as current financial resources at year end

Net assets of the group health insurance internal service fund

Elimination of interfund assets and liabilities:Due from other funds (182,638)Due to other funds 182,638

Revenues in the statements of activities that do not providecurrent financial resources are not reported as revenuesin the funds

Some liabilities are not due and payable in the current period and,therefore, are not reported as liabilities in the funds. Thoseliabilities consist of:Long-term liabilities at June 30, 2005

Compensated absences (51,000)Bonds payable (290,000)Recreation bonds payable (2,510,000)Capital lease obligations (3,803)

Accrued interest payable on bonds

Total net assets of governmental activities at June 30, 2005

$ 4,777,225

6,568,369

344,314

6,414

(2,854,803)

(14,642)

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CITY OF EUNICE, LOUISIANAStatement of Revenues, Expenditures and Change in

Fund Balances - Governmental FundsYear Ended June 30, 2005

RevenuesTaxesLicenses and permitsIntergovernmental revenuesFines, forfeitures and bondsLiberty Cajun Music ShowInterestMiscellaneous

Total revenues

Expenditures:Current-General governmentPublic safetyPublic worksHealth and welfareCulture and recreationOther

Capital outlayBond Issue CostDebt service:Principal retirementInterest and fiscal chargesTotal expenditures

Excess (deficiency) ofrevenues over expenditures

Other financing sources (uses):Proceeds from bondOperating transfers inOperating transfers out

Total other financingsources (uses)

Excess (deficiency) of revenuesand other sources overexpenditures and other uses

Fund balances, beginningPrior period adjustmentFund balances, ending

Sales Tax Recreation ComplexGeneralFund

$ 1,116,356458,845391,742

9,45549,200

-533.943

2.559.541

1,231,8352,772,097

818,26110,893

658,93837,94010,000

-

_

-5.539.964

(2,980.423)

2,745,894(2,224)

2,743,670

(236,753)

300,54051.000

SpecialRevenue

$ 3,606,753-

883,408--

44,744104.088

4,638.993

217,839---

126,516-

2,017,887-

5,432611

2.368.285

2,270,708

-(2.469.1 18)

(2,469.118)

(198,410)

2,030,610-

Capital ProjectFund

$----

35,120-

35.120

-----

23,72839,656

--

63,384

(28.2641

2,550,000316,913

f323,710)

2.543,203

2,514,939

--

City of EuniceSinking Fund

ST-1997

$----

3,255-

3.255

----

10--

85,00019.720

104.730

(101,475)

104,172-

104,172

2,697

49,724-

$ 2.514.939The accompanying notes are integral part of the basic financial statements.

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OtherGovernmental

Funds$

-149,215

5,658

3,31970

158,262

7,648115,734

---

12553,673

-

40,00060,105

277,285

019.0231

325,933-

325,933

206,910

55,968

Total$ 4,723,109

458,8451,424,365

15,11349,20086,438

638,1017,395,171

1,457,3222,887,831

818,26110,893

785,45438,075

2,105,28839,656

130,43280.436

8,353,648

(958,477)

2,550,0003,492,912

f2.795.052)

3.247.860

2,289,383

2,436,84251,000

$ 4.777.225

15

CITY OF EUNICE, LOUISIANAReconciliation of the Statement of Revenues, Expenditures, and

Changes in Fund Balances of Governmental Fundsto the Statement of Activities

For the Year Ended June 30, 2005to

Total net changes in fund balance at p-June 30, 2005 per statement of revenues, yexpenditures and changes in fund balances $ 2,289,383

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

Governmental funds report capital outlays asexpenditures. However, in the statements •of activities, the cost of those assets is Iallocated over their estimated useful livesand reported as depreciation expense. •Capital outlay which is considered expenditures •

on the statement of revenues, expenditures andChange in fund balances 2,105,282 I

Depreciation expense for the year ended June 30, 2005 (431,7161 1,673,566 •

Add: Payments on long term debt 160,432 I

Less: Proceeds from debt (2,550,000)Less: Sale of capital asset (net) (12,741) ILess: Revenues in the statement of activities that do

not provide current financial resources arenot reported as revenues in the funds. (96,615)

Less: Net loss on group health insurance internalservice fund (34,687)

Some items reported in the statement of activities do not Mrequire the use of current financial resources and, therefore, Jare not reported as expenditures in governmental funds.These activities consist of:

Increase in accrued interest payable (14,6421

Total changes in net assets at June 30, 2005 per statement of activities $ 1.414.696


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CITY OF EUNICE, LOUISIANAProprietary Funds

Statement of Net AssetsJune 30, 2005

Assets:Cash and cash equivalentsReceivables (net of allowance foruncollectibles):

AccountsTaxesOther

Prepaid itemsDue from Other FundsUtility, plant and equipment, at costAccumulated depreciation

Total assets

Liabilities:Accounts payableAccrued liabilitiesDue to other fundsPayable from restricted assets-

Customers' depositsTotal liabilities

Net Assets;Investment in capital assets, net of related debtUnrestricted

Total net assets

Business-TypeEnterprise Fund

$ 556,240

312,4963,523

101,24432,800

124,88814,772,436(6.719.050)9,184,577

209,06010,5221,000

240.160460,742

8,053,386670,449

$ 8.723.835

GovernmentalActivities

Internal Service Fund

$


17

CITY OF EUNICE, LOUISIANAProprietary Funds

Statements of Revenues, Expenses, and Changes in Fund Net AssetsYear Ended June 30, 2005

Business - typeActivities-Enterpri se

FundOperating revenues:Charges for servicesOther billings to customersTaxes Sewer Maintenance

Total operating revenues

Operating expenses:Payroll and related benefitsGas purchasesSupplies and materialsRepairs and maintenanceOffice expensesProfessional feesInsuranceDepreciationBad debtsPermitsUtilities and telephoneMiscellaneous

Total operating expenses

Operating income

Nonoperating income:Interest earned on investmentsOther income

Total nonoperating income

Income before other income and transfers

Other income and transfers:Operating transfers inOperating transfers outCapital contributions

Total other income and transfers

Change in net assetsNet assets, beginningNet assets, ending

$

$

3,426,13560,68696,161

3,582.982

527,9821,288,559

136,694256,47330,91613,069

191,136300,903

7,50613,208

230,76870.158

3,067.372

515.610

6,90210.23617,138

532.748

234,300(905,000)365.882

(304.818)

227,9308.495.9058.723.835

Governmental ActivitiesInternal Service

Fund

$

Pm

Pfat

7,590

i

7.590

(7.590)

63

63

(7.527)

(27,160)

(27,160)

(34,687)34.687

i

3

$

The accompanying notes are an integral part of the basic financial statements.18 i

CITY OF EUNICE, LOUISIANAStatement of Cash Flows

Proprietary FundsFor the Year Ended June 30, 2005

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Cash flows from operating activities:Receipts from customersPayments to suppliersPayments to employeesOther receiptsNet cash provided (used) by operating activities

Cash flows from noncapital financing activities:Other receiptsTransfers from other fundsTransfers to others fundsNet cash provided (used) by noncapital

financing activities

Cash flows from capital and related financing activities:Proceeds from meter depositsProceeds from federal grant

i Acquisition of property, plant and equipmentNet cash provided (used) by capital and related

JP, financing activities

LCash flows from investing activities:

—i Interest on investments

Net cash provided by investing activities

Net increase (decrease) in cash and cash equivalents

* Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

Business-type Activities Governmental ActivitiesEnterprise Fund Internal Service Fund

$ 3,309,321(2,149,404)

(530,357)7,326

636,886

10,185234,300

(905,000)

(660,5151

18,955240,882

(313,548)

(53.711)

6,902

6,902

(70,438)

626.678

$ 556.240

(7,590)

(27,160)

(27,160)

63

63

(34,687)

34,687

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CITY OF EUNICE, LOUISIANAStatement of Cash Flows

Proprietary Funds (continued)For the Years Ended June 30, 2005

Reconciliation of operating income (loss) to net cashused by operating activities:

Operating income (loss)Adjustments to reconcile operating income (loss) to netCash used by operating activities:

DepreciationChanges in current assets and liabilities:

(Increase) decrease in accounts receivable(net)(Increase) decrease in other receivables(Increase) decrease in prepaid items(Increase) decrease in due from other fundsIncrease (decrease) in due to other fundsIncrease (decrease) in accounts payableIncrease (decrease) in accrued liabilities

Net cash provided (used) by operating activities

Reconciliation of cash and cash equivalents per statementof cash flows to the balance sheet:

Cash and cash equivalents, beginning of period -Cash - unrestrictedInterest - bearing deposits - unrestrictedCash - restrictedInterest - bearing deposits - restricted

Less: Interest - bearing deposits with maturityin excess of 90 days

Total cash and cash equivalents

Cash and cash equivalents, end of period -Cash - unrestrictedInterest - bearing deposits - unrestrictedCash - restrictedInterest- bearing deposits - restricted

Total cash and cash equivalents

Net increase (decrease)

Business-type ActivitiesEnterprise Fund

$ 517,110

299,403

(32,554)(93,969)(14,975)

(124,837)558

88,525(2,375)

S 636.886

$ 426,678

200,000

626,678

356,240

200,000

Governmental Activities j|Internal Service Fund

$ (7,590)

ii

34,687

34.687 ii


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ASSETS

CashDue from other funds

Total assets

LIABILITIES

Accrued liabilitiesDue to other funds

Total liabilities

CITY OF EUNICE, LOUISIANAFiduciary FundPayroll Fund

Statement of Net AssetsJune 30,2005

2005

$ 17,352102.721

S 120.073

$ 120,073

$ 120.073

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

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CITY OF EUNICE, LOUISIANAFiduciary FundPayroll Fund

Statement of Changes in Net AssetsJune 30, 2005

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ASSETS

CashDue from other funds

LIABILITIES

Accrued liabilities

Balance7/1/05

$ 49,231100,641

$ 149.872

$ 149,872$ 149.872

Additions

$4,321,2204.354.714

S 8.675.934

$ 1,774,407$ 1.774.407

Deductions

$ 4,353,0994,352,634

$ 8.705.733

$ 1,804.206$ 1.804.206

Balance6/30/05

$ 17,352102,721

$ 120.073

$ 120.073$ 120.073

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

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to CITY OF EUNICE, LOUISIANA

""" Notes to Financial Statements

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

• The City of Eunice was incorporated in 1909 under the Lawrason Act, and is administered under the Mayor andBoard of Aldermen form of government. The accounting and reporting policies of the City of Eunice conform to

P United States generally accepted accounting principles as applied to governmental units. The GovernmentalAccounting Standards Board is the accepted standard-setting body for establishing governmental accounting andfinancial reporting principles. GAAP includes all relevant Financial Accounting Standards Board (FASB)

F pronouncements in the government-wide financial statements, Financial Accounting Standards Board (FASB)pronouncements and Accounting Principles Board (APB) opinions on or before November 30, 1989 have been

p. applied unless those pronouncements conflict with or contradict GASB pronouncements, in which case, GASBL prevails. Such accounting and reporting procedures also conform to the requirements of Louisiana Revised Statutes

24:513 and to the guides set forth in the Louisiana Municipal Audit and Accounting Guide and to the industry auditp" guide, Audits of State and Local Governmental Units, published by the American Institute of Certified Public^ Accountants.

P* For the fiscal year ended June 30, 2004, the City implemented the new financial reporting requirements of GASBL Statements No. 34, Basic Financial Statements - and Management's Discussion and Analysis - For State and Local

Governments. As a result, an entirely new financial presentation format has been implemented.

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The following is a summary of the more significant accounting policies:

P Reporting EntityL

In evaluating how to define the City for financial reporting purposes, management has considered all potentialI component units. The decision to include a potential component unit in the reporting entity was made by applying

the criteria set forth in GAAP. The basic, but not the only, criterion for including a potential component unit withinthe reporting entity is the governing body's ability to exercise oversight responsibility. The most significant

t manifestation of this ability is financial interdependency. Other manifestations of the ability to exercise oversightresponsibility include, but are not limited to, the selection of governing authority, the designation of management,

•* the ability to significantly influence operations and accountability for fiscal matters. The other criterion used to5"

L evaluate potential component units for inclusion in the reporting entity is the existence of special financingrelationships, regardless of whether the City is able to exercise oversight responsibilities.

23

CITY OF EUNICE, LOUISIANA •»

Notes to Financial Statementsi j

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

J^Based on the foregoing criteria, the following governmental organizations are not considered part of the City

because they are not material in relation to the financial statement taken as a whole and are thus excluded from the _accompanying financial statements for the reasons noted: j

The Eunice City Court and City Marshall are operated under the directorship of the Eunice City Judge and •Marshall who are elected public officials. Revenues are derived from court costs. The City cannot |significantly influence operations nor does it have responsibility for fiscal management. A copy of thefinancial statements can be obtained from the City of Eunice, Louisiana. •

IThe Opelousas-Eunice Public Library is ajoint venture between the cities of Opelousas and Eunice. TheCity of Eunice does not exercise significant influence over management or fiscal matters of the Library. A •copy of the joint ventures separate financial statements can be obtained from the Opelousas-Eunice Public ILibrary, P.O. Box 249, Opelousas, LA 70570.

The municipality's officials are also responsible for appointing the members of the board of the Housing •Authority of Eunice, Louisiana. This agency is considered to be a related organization since the municipalityappoints the governing board but is not financially accountable for the organization. A copy of the financial Istatements can be obtained from the Eunice Housing Authority, P.O. Box 224, Eunice, LA 70535. *

Basis of Presentation B

Government - Wide Financial Statements (GWFS) —

The statement of net assets and statement of activities display information about the City of Eunice, the primarygovernment, as a whole. They include all funds of the reporting entity. The statements distinguish between «governmental and business-type activities. Governmental activities generally are financed through taxes, |intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or inpart by fees charged to external parties for goods or services. •

The statement of activities presents a comparison between direct expenses and program revenues for the business-type activities of the City and for each function of the City's governmental activities. Direct expenses are those that •

I 9

are specifically associated with a program or function. Program revenues include (a) fees, fines, and charges paid by •the recipients of goods and services offered by the programs, and (b) requirements of a particular program.Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. ^

24

32I


Notes to Financial Statements

^ NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

"* Fund Financial Statements

* The accounts of the City of Eunice are organized on the basis of funds each of which is considered a separateaccounting entity. Fund accounting is designed to demonstrate legal compliance and to aid financial management by

p. segregating transactions relating to certain government functions or activities. The operations of each fund are^ accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues,

and expenditures, or expenses as appropriate.

y Government resources are allocated to and accounted for in individual funds based upon the purpose for whichspending activities are controlled. The various funds are grouped in the financial statements in this report, into

p seven generic fund types and three broad fund categories. The emphasis on fund financial statements is on majorL governmental and enterprise funds, each displayed in a separate column. A fund is considered major if it is the

primary operating fund of the City or meets the following criteria:f"• a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or

enterprise fund are at least 10 percent of the corresponding total for all funds of that category or

L^ type; and

b. Total assets, liabilities, revenues, or expenditures/expense of the individual governmental'• or enterprise fund are at least 5 percent of the corresponding total for all governmental and

enterprise funds combined

r*, The major funds of the City are described below:

_ Governmental Funds -

General Fund

jy The General Fund is the general operating fund of the City. It is used to account for all financial resourcesexcept those required to be accounted for in another fund.

Special Revenue Funds

( Special revenues funds are used to account for the proceeds of specific revenue sources (other than expendabletrusts or major capital projects)that are legally restricted to expenditures for specific purposes.

B Additionally, the City reports the following fund types:

25

CITY OF EUNICE, LOUISIANA -

HPNotes to Financial Statements

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) _

IDebt Service Funds

Debt service funds are used to account for the accumulation of resources for, and the payment of, general long- ||term debt principal, interest and related costs.

Capital Project Funds

Capital project funds £financed by proprietary funds and trust funds.Capital project funds are used to account for the acquisition and construction of major facilities other than those •

Proprietary Funds -

Enterprise FundiiThe Enterprise Fund is used to account for operations (a) that are financed and operated in a manner similar to

private business enterprises -where the intent of the governing body is that the costs (expenses, includingdepreciation) of providing goods or services to the general public on a continuing basis to be financed or Irecovered primarily through user charges; or (b) where the governing body has decided the periodicdetermination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, —

public policy, management control, accountability or other purposes. The City of Eunice's enterprise fund is Ithe utility fund. It accounts for the provision of gas and sewer services to residents of the City.

Internal Service Fund M

Internal Service Funds are used to account for the financing of goods or services provided by one department or •agency to other departments or agencies of the government and to other government units, on a cost |reimbursement basis. The City of Eunice's internal service fund is the group health insurance fund.

J

3

26

m CITY OF EUNICE, LOUISIANA

""* Notes to Financial StatementsM


*" Proprietary funds are reported in accordance with GASB Statement No. 20, Accounting and FinancialReporting for Proprietary Funds and other Governmental Entities that use Proprietary Fund Accounting. This

i standard requires that all applicable GASB pronouncements, Financial Accounting Standards Board (FABS)Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research

p. Bulletins (ARBs) issued on or before November 30,1989 be applied to proprietary activities unless they (FASB'* Statements and Interpretations, ARB Opinions, and ARBs) conflict with or contradict GASB pronouncements.

P- GASB Statement No. 20 also states that for proprietary activities management may elect to apply all FASB^ Statement and Interpretations issued after November 30,1989, except for those that conflict with or contradict

GASB pronouncements. Proprietary activities under control of the City will not elect to apply FASB»"• Statements and Interpretations issued after November 30,1989, unless they are adopted by GASB.!•

Fiduciary fund types are used to account for assets held on behalf of outside parties, including other*"" governments, or on behalf of other funds within the government. When these assets are held under theW terms of a formal trust agreement, either a pension trust fund, a nonexpendable trust fund or an expendable

trust is used. The terms "nonexpendable" and "expendable" refer to whether or not the government is underP an obligation to maintain the trust principal. Agency funds generally are used to account for assets that theI* government holds on behalf of others as their agent. The City of Eunice's fiduciary fund is the payroll

fund.p«L"" Measurement Focus/Basis of Accounting

p^[ Measurement focus is term used to describe "which" transactions are recorded within the various financial

statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focusP. applied.

27

CITY OF EUNICE, LOUISIANA "•

F"Notes to Financial Statements ;m

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) _rMMeasurement Focus

activities are presented using the economic resources measurement focus as defined in item b. below.

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

a. All governmental funds utilize a "current financial resources" measurement focus. Only currentfinancial assets and liabilities are generally included on their balance sheets. Their operatingstatements present sources and uses of available spendable financial resources during a given period. •These funds use fund balance as their measure of available spendable financial resources at the end of •the period.

b. The proprietary fund utilizes an "economic resources" measurement focus. The accounting objectives ™of this measurement focus are the determination of operating income, changes in net assets (or costrecovery), financial position, and cash flows. All assets and liabilities (whether current or noncurrent) Iassociated with their activities are reported. Proprietary fund equity is classified as net assets.

Basis of Accounting 5

In the government-wide statement of net assets and statements of activities, both governmental and business-type _activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are Irecognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues,expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized •when the exchange takes place. |

Governmental fund financial statements are accounted for using the current financial resources measurement focus •and the modified accrual basis of accounting. Their revenues are recognized when they become measurable and Iavailable as net current assets. Sales taxes are considered "measurable" when collected by the collection agency andare recognized as revenue at that time. Ad valorem taxes are recognized as revenue in the year in which they are •billed. Fees and non tax revenues are recognized when received. Grants from other governments are recognized •when qualifying expenditures are incurred. Available means collectible within the current period or soon enoughthereafter to pay current liabilities, usually 60 days. *l

28

H CITY OF EUNICE, LOUISIANA

Notes to Financial StatementsM

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)fm v '

*" Those revenues susceptible to accrual are property taxes, grant revenues and interest revenue.

r"! Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability

is incurred except that accumulated unpaid vacation and sick pay are not accrued and principal and interest onp. general long-term debt are recognized when due. Purchases of various operating supplies are regarded as. expenditures at the time purchased,

IP- The proprietary fund is accounted for using the accrual basis of accounting, whereby revenues are recognized when^ they are earned and expenses are recognized when incurred.

*•" Bad debts are written off when accounts became worthless.L

Transfers between funds that are not expected to be repaid are accounted for as other financing sources (uses).*" These transactions are recorded when the transfers occur.L

Program RevenuesP«

^ Program revenues included in the Statement of Activities are derived directly from the program itself or from partiesoutside the City's taxpayers or citizenry, as a whole; program revenues reduce the cost of the function to be financed

i from the City's general revenues.bi

_ Allocation of indirect expenses^M — mmm ±

^ The City reports all direct expenses by function in the Statement of Activities. Direct expenses are those that arep. clearly identifiable with a function. Indirect expenses of other functions are not allocated to those functions, but areL reported separately in the Statement of Activities. Depreciation expense is specifically identified by function and is

included in the direct expense of each function. Interest on general long-term debt is considered an indirect expense*• and is reported separately on the Statement of Activities.k

Budgets

I) Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriatedbudgets are adopted for the general and special revenue funds. All annual appropriations lapse at fiscal year end.

H Project-length financial plans are adopted for all capital project funds, therefore, they are not included in this report.

Encumbrances are not recorded in the financial statements.

29

CITY OF EUNICE, LOUISIANA •*

Notes of Financial Statements ;

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) _

The budget presented is as amended by the Board of Aldermen. Expenditures may not legally exceed budgetedappropriations by more than 5% at the individual fund level. ••

Cash and Investments

Cash includes amounts in demand deposits. Investments include certificates of deposit and time deposits. The bank j|balance of cash and investments is covered by federal depository insurance or by collateral in the name of thepledging fiscal agent bank in a holding or custodial bank that is mutually acceptable to both parties. •

Short-Term Interfund Receivable/Pavables

IDuring the course of operations, numerous transactions occur between individual funds. These receivables and •payables are classified as "due from other funds" or "due to other funds" on the balance sheet. Interfund receivablesand payables between funds within governmental activities are eliminated in the Statement of Net Assets. I

Prepaid Items

Payments made for services that will benefit periods beyond June 30, 2005, are recorded as prepaid items.

Capital Assets B

Capital assets, which include property, plant, and equipment, are reported in the applicable governmental or _business-type activities columns in the government-wide financial statements. All purchased fixed assets are valued Iat cost or estimated historical cost. The amounts of estimated costs are immaterial to these financial statements.Donated fixed assets are stated at their fair market value on the date donated. The City maintains a threshold levelof $5,000 or more for capitalizing capital assets.

Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, streets and •sidewalks, drainage systems and lighting systems were not capitalized, prior to July 1, 2003. I

30 i


Notes of Financial Statements


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

Buildings 40 yearsEquipment 7 yearsVehicles 5 yearsUtility system and improvements 25-50 years

P> Depreciation of buildings, equipment and vehicles in the proprietary fund types is computed using the straight-line|y method. The estimated useful lives are as follows:

f" Gas system 67 yearsIM Sewerage system 40-67 years

Meters & regulators 25 years"" Vehicle & other equipment 4- 10 yearsy

Compensated Absences

ta Vested compensatory time that is expected to be liquidated with expendable available financial resources is reportedas an expenditure and a fund liability of the governmental fund that will pay it. Vested compensatory time of the

I proprietary fund is recorded as an expense and liability of that fund as the benefits accrue to employees. In"* accordance with the provisions of Statement of Financial Standards No. 43, Accounting for Compensated Absences,__ no liability is recorded for nonvesting accumulating rights to receive sick pay benefits. Vacation time is allowed^^ Cl

; January 1 and lapse December 3 1 st if not used.

p. Long-Term Debt

faThe accounting treatment of long-term debt depends on whether the assets are used in governmental fund operations

p or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.

All long-term debt to be repaid from governmental and business-type resources are reported as liabilities in theIP government- wide statements. The long-term debt consists primarily of the revenue bonds payable.

31

CITY OF EUNICE, LOUISIANA *

Notes of Financial Statementsm


Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. The debtproceeds are reported as other financing sources and payment of principal and interest reported as expenditures. The _accounting for proprietary fund long-term debt is the same in the fund statements as it is in the government-wide flstatements.

Equity Classifications |

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

a. Invested in capital assets, net of related debt - Consists of capital assets including restricted capital assets, netof accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, orother borrowing that are attributable to the acquisition, construction, or improvement of those assets.

b. Restricted net assets - Consist of net assets with constraints placed on the use either by (1) external groups, •such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) 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 in •capital assets, net of related debt."

d. In the fund financial statements, governmental fund equity is classified as fund balance. Fund balance isfurther classified as reserved and unreserved, with unreserved further split between designated and _undesignated. Proprietary fund equity is classified the same as in the government-wide statements. The ITown's policy is to first apply unrestricted resources when an expense is incurred for purposes for whichboth restricted and unrestricted net assets are available. •

IRevenues. Expenditure, and Expenses

Operating Revenues and Expenses B

Operating revenues and expenses for proprietary funds are those that result from providing services and producing •and delivering goods and/or services. It also includes all revenues and expense not related to capital and related llfinancing, noncapital financing, or investing activities.

d

32

m CITY OF EUNICE, LOUISIANA

*" Notes of Financial StatementsIM


•* Expenditures / Expenses

I In the government-wide financial statements, expenses are classified by function for both governmental andbusiness-type activities.

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

_ Governmental Funds - By Character:L Proprietary Fund - By Operating and Nonoperating

E ln the fund financial statements, governmental funds report expenditures of financial resources. Proprietary fundsreport expenses relating to use of economic resources.

r Interiund Transactions

Transactions that constitute reimbursements to a fund expenditures/expense initially made from it that are properly

C applicable to another fund, are recorded as expenditures/expense in the reimbursing fund and as reductions ofexpenditures/expense in the fund that is reimbursed.

P All other interfund transactions, except quasi-external transactions and reimbursements, are reported as transfers.•" Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other

interfund transfers are reported as operating transfers.rFor purposes of the statement of activities, all interfund transfers between individual governmental funds have been

p. eliminated.

Concentration of Risks

L Concentration of risks with respect the City is subject to the conditions of the limited geographical area of the City.

p Estimates

The preparation of financial statements in conformity with United States generally accepted accounting principles

( required management to make estimates and assumptions that affect the reported amount of assets and liabilities anddisclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts ofrevenues and expenses during the reporting period. Actual results could differ from those estimates.

33

CITY OF EUNICE, LOUISIANA to

•Notes of Financial Statements ,

•H

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) p

LStatement of Cash Flows

maturity of three months or less when purchased are considered to be cash equivalents.

NOTE 2 LEGAL COMPLIANCE - BUDGETS I

The City follows these procedures in establishing the budgetary data reflected in these financial statements: •

The City Clerk prepares a proposed budget and submits same to the Mayor and Council no later than fifteen daysprior to the beginning of each fiscal year.

A summary of the proposed budget is published and the public is notified that the proposed budget is availablefor public inspection. At the same time, a public hearing is called.

Budgets for all funds are adopted on a basis consistent with generally accepted accounting principles of the UnitedStates of America. Budgeted amounts are as originally adopted or as amended from time to time by the Board ofAldermen. The budget was amended prior to the fiscal year end June 30, 2005.

iA public hearing is held on the proposed budget at least ten days after publication of the call for the hearing.

•After the holding of the public hearing and completion of all action necessary to finalize and implement thebudget, the budget is adopted through passage of an ordinance prior to the commencement of the fiscal year forwhich the budget is being adopted. I

Budgetary 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 fof the Council.

•

i

I"

L



NOTE 3 CASH AND INTEREST-BEARING DEPOSITS

Under state law, the City may deposit funds within a fiscal agent bank organized under the laws of the State ofLouisiana, the laws of any other state in the Union, or the laws of the United States. The City may invest incertificates and time deposits of state banks organized under Louisiana law and national banks having principaloffices in Louisiana. At June 30, 2005, the City has cash and interest-bearing deposits totaling, $5,585,524 asfollows:

Demand deposits/savings $ 5,585,524Total $ 5.585.524

jy These deposits are stated at cost, which approximates market. Under state law, these deposits, (or the resulting bankbalance) must be secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank.

L The market value of the pledged securities plus the federal deposit insurance must at all times equal the amount ondeposit with the fiscal agent bank. These securities are held in the name of the pledging fiscal agent bank in aholding or custodial bank that is mutually acceptable to both parties. Deposit balances (bank balance) at June 30,

f" 2005, are secured as follows.h.

Bank balances $ 5,761,895ftm

im Federal deposit insurance 100,000_ Pledged securities (Category 3) 6,872,899

Total 6.972.899IH

PP, Excess $ 1.211.004

te.

E Pledged securities in Category 3 includes uninsured or unregistered investments for which the securities are held bythe broker or dealer, or by its trust department or agent, but not in the City's name. Even though the pledgedsecurities are considered uncollateralized (Category 3) Louisiana Revised Statue 39:1229 imposes a statutory

I requirement on the custodial bank to advertise and sell the pledged securities within 1 0 days of being notified by theCity that the fiscal agent has failed to pay deposited funds upon demand.

35



NOTE 4 RECEIVABLES

Receivables at June 30, 2005 in the fund financial statements consist of the following:

Sales Tax OtherGeneral Special Revenue Governmental Enterprise Total

Taxes $5,174 $ - $ - $ 3,573 $ 8,747Accounts - - 4,775 347,496 352,271Other 1,400 90.944 - 101.244 193,588Gross receivables 6,574 90,944 4,775 452,313 554,606

Less: allowance foruncollectibles 2,587 - - 35,050 37,637

Net total receivables $ 3.987 S 90.944 $ 4.775 $417.263 $516.969

ii

Accounts receivables in the Enterprise Fund consists of billed and unbilled receivables relating to gas and sewerage •services. Gas accounts receivable are divided into two billing cycles. Cycle 1 is billed on the 1 8 for meters read •from the 1 st through the 1 5th. Cycle 2 is billed on the 3rd for meters read the 1 6th through 24th of the previous month.Billed receivables at June 30, 2005were $146,697 and unbilled receivables were $200,799. •

Ad valorem taxes attach as an enforceable lien on property as of January 1 of each year. Taxes are levied by the Cityin September or October and are actually billed to the taxpayer in November. Billed taxes become delinquent on IJanuary 1 of the following year. Revenues from ad valorem taxes are budgeted in the year billed.

The City bills and collects its own property taxes using the assessed values determined by the tax assessors of St. ILandry Parish and Acadia Parish.

For the year ended June 30, 2005 taxes of 13.88 mills were levied on property with an assessed valuation totaling$44,151,750 and were dedicated as follows:

Mileage Duration IGeneral corporate tax 6.77 mills Permanent ™Street maintenance 5.00 mills 2002-201 1Sewer maintenance 2.11 mills 1 996-2005

13.88

Total taxes levied were $612,828. Taxes receivable, net of allowance for uncollectibles, at June 30, 2005 were J$6,160.

i

L



NOTES CAPITAL ASSETS

Capital asset activity for the year ended June 30,2005 was as follow:

Governmental activities:Capital assets not being depreciated:

LandOther capital assets:BuildingInfrastructureEquipmentAutoTotals

Less accumulated depreciationBuildingsInfrastructureEquipmentAutoTotal accumulated depreciation

Governmental activities,capital assets, net

Business-type activities:Capital assets not being depreciated:

LandOther capital assets:Gas systemSewer systemAuto's and trucksEquipmentTotals

Less accumulated depreciationGas systemSewer systemAuto's and trucksEquipmentTotal accumulated depreciation

Business type activities, capitalassets, net

Balance7/01/04 Additions Deletions

$ 1,298,013 $

$ 4.907.544 $ 1.673.566 S (12.7411

Balance6/30/05

$ 1,298,013

6,066,958156,010947,030

1.646.97110,114,982

3,331,1251,950

705,4621,168,9015,207,438

1,029,987552,875388,696133.724

2,105.282

151,39510,71598,515171,091431,716

---

100,956100,956

--

88,21588.215

7,096,945708,885

1,335,7261,679,73912,119,308

3,482,52012,665803,977

1.251,7775,550,939

$ 6.568.369

5,516,6488,280,937127,912408,391

14,333,888

2,252,9893,751,376

64,786348,996

6,418,147

27,295411,253

-_

438,548

87,153181,96521,30510,480300,903

5,543,9438,692,190127,912408,391

14.772,436

2,340,1423,933,341

86,091359,476

6,719,050

$ 7.915.741 $ 137.645 $. $ 8.053.386

37



NOTE 6 LONG-TERM DEBT

The following is a summary of debt transactions of the City of Eunice for the year ended June 30,2005

June 30,2004 Additions

- $ 2,550,000375,000

9,23556,247

30,000

470.842 $ 2.550.000

iJune 30,

Retirements

$ 40,00085,000

5,432-

30,000

S 160.432

2005

$2,510290

356

$ 2.860

,000,000,803,247

_

.050fr- • —

i

1

I

Recreation complex bondsGeneral obligations bondsCapital leases, sales tax fundCompensated absences payableOther - liability insurance

claims payable

Bonds payable at June 30, 2005 are comprised of the following individual issues:

General Obligation Bonds (secured by proceeds of a .2% sales and use tax):

Public Improvements Bonds, Series ST-1997, dated5/1/97, original issue of $810,000, retired annuallyin various installment amounts, bearing interestat 4.10% to 5.40% per annum, final maturity at 7/1/08

Sales Tax Revenue Bonds (secured by proceeds of a 1 % sales and use tax):

Recreation Complex Bonds, Series 2004, dated 12/01/2004, original issue of$2,550,000, retired annually in various installment amounts, bearinginterest at 3.75% to 7% per annum, final maturity at 6/01/2004

Capital lease:

Purchase of vehicle under capital lease in the amount of$15,852 payable in 36 monthly installments of $504, includinginterest, payable from the Sales Tax Fund

S 2.510.000

ii

$ 3.803

38 i



NOTE 6 LONG-TERM DEBT (Continued)

to

1

mmI

L

r-Lp-

L

The annual requirement to amortize all debt outstanding at June 30, 2005 including interest paymentsof $1,327,938 are as follows:

Year Principle PaymentsEndingJune 30,

20062007200820092010

2011-20152016-20242021-2024

GeneralObligation

90,00095,000

105,000-----

Recreation CapitalComplex Leases

80,000 3,80385,00090,00095,000

100,000575,000745,000740,000

Interest

132,925111,810105,860100,46095,235

412,810278,53890.300

Total

306,728291,810300,860195,460195,235987,810

1,023,538830,300

$ 290.000 $ 2.510.0QO $ 3.8Q3 $ 1.327.938 S 4.131.741i"

bThe Debt Service Fund has $361,421 available of June 30, 2005 to service these debts.

»••

I* NOTE 7 FLOWS OF FUNDS - RESTRICTIONS ON USE - SALES TAX REVENUES

The City of Eunice levies a 2.2% sales and use tax dedicated as follows:fc»

^ Proceeds of the 1% sales and use tax levied in 1978, are dedicated as follows:

Under the terms of the sales tax ordinance, all monies collected are deposited into a separatemm account.

bMonies remaining in the sales tax fund after payment of collection expenses, may be used for

E providing additional general fund revenues and for the construction, operations andmaintenance of capital improvements,

I This is a 25 year sales and use tax that was set to expire on December 31, 2003. It has beenrenewed. This tax was renewed for an additional 25 years and will expire on December 31,2028.

• Proceeds of the 1% sales and use tax levied in 1962 are dedicated as follows:

B Under the terms of the Recreational Complex, Sales Tax Bonds-Series 2004, all monies collected are™ deposited into a separate sales tax fund account.

39

CITY OF EUNICE, LOUISIANA "

•PNotes of Financial Statements m

NOTE 7 FLOWS OF FUNDS - RESTRICTIONS ON USE - SALES TAX REVENUES m

(Continued) —

After payment of collection expenses monies must be transferred monthly to a "Sales Tax Bond •Sinking Fund" established for retirement of these bonds, in amounts equal to one-twelfth of the Jjinterest and principal of the bonds becoming due in the next maturity.

A "Sales Tax Bond Reserve Fund" is to be established and transfers from the sales tax fund are to be 1deposited until such time as the fund has accumulated sufficient funds to equal the highest combinedinterest and bond payments due for any succeeding fiscal year. •

Monies remaining in the sales tax fund after payment of the above noted obligations maybe used for:

Opening, constructing, paving, resurfacing and improving streets, sidewalks and bridges; •constructing and purchasing street lighting facilities; constructing and improving drains, drainagecanals and subsurface drainage; constructing and purchasing fire department stations and equipment; •constructing and purchasing police department stations and equipment; constructing and purchasing ™garbage disposal and health and sanitation equipment; constructing public buildings; purchasing,constructing and improving public parks and recreational facilities and acquiring the necessary Iequipment and furnishings therefore; purchasing equipment for civil defense; constructing, acquiringor improving any work of permanent public improvement; and purchasing and acquiring all _equipment and furnishing for public works, buildings, improvements and facilities. I

Providing funds, not to exceed ten percent (10%) of the proceeds of said tax for such year, to defray •costs of operating and maintaining a public library. |

Providing funds, not to exceed ten percent (10%) of the proceeds of said tax for such year, for the •payment of salaries of municipal employees. |

The 1962 sales and use tax is a permanent sales tax. •

Proceeds of the .2% sales and use tax levied in 1988 are dedicated as follows:

— „ „. v , , ~collected are deposited into a sales tax fund account.

3After payment of collection expenses, monies must be transferred to a sinking fund established for ™retirement of these bonds, in amounts equal to one-sixth of the interest and one-twelfth of the bondsbecoming due in the next maturity. \

40

3I

"" CITY OF EUNICE, LOUISIANAMl


* NOTE 7 FLOWS OF FUNDS - RESTRICTIONS ON USE - SALES TAX REVENUES(Continued)

wm A reserve fund is established by monthly transfers from the sales tax fund of $ 1,000 until such timeas the reserve fund has accumulated sufficient funds to equal the highest combined interest and bond

[ payments due for any succeeding fiscal year.

c Monies remaining in the sales tax fund may be used for constructing, acquiring, extending,improving, operating and maintaining sewers and sewerage disposal facilities.

p The 1988 sales and use tax is a permanent sales tax.

NOTE 8 PENSION COSTrM Municipal Employee's Retirement System

C Membership in the retirement system is mandatory for all employees who are employed on apermanent basis working at least 3 5 hours per week. However, new employees over 60 years of ageand employees covered by another retirement system are not eligible. Employees are eligible to

P retire at any age with thirty or more years of creditable service or age 55 with twenty-five years of• creditable service. Creditable service means all periods of time for which credit is allowed towards

any benefits. Upon retirement, members are entitled to a retirement benefit, payable monthly in ani amount equal to three percent of the member's final compensation multiplied by years of creditable

service, provided however, that: (1) any member who has held an elective office in amunicipality which is a participating employer shall be paid an additional annuity equal to one-half

I of one percent for each year of such elected service, (2) for any employee who was a member only ofthe supplemental plan prior to the revision date, the benefit earned for service credited prior to the

_ revision shall be determined on the basis of one percent of final compensation plus two dollars perL month for each year of service credited prior to the revision date, and three percent of final

compensation of each year of service credited after the revision date; and (3) the benefit of the!• Section shall not exceed one hundred percent of a member's final salary.

Final compensation means the average monthly earnings during the highest thirty-six months or

E joined months if service has interrupted. Final salary means the average monthly earnings of amember during the twelve month period immediately preceding his death or the establishment ofPlan A. The System also provides death and disability benefits which require five years of creditable

• service for eligibility.

The City has several pension plans covering substantially all of its employees, as follows:

E Municipal Employees' Retirement System of LouisianaState of Louisiana - Municipal Police Employees' Retirement SystemState of Louisiana - Firefighters' Retirement System

K - Louisiana State Employee's Retirement System

41

CITY OF EUNICE, LOUISIANA^^

^MNotes of Financial Statements

NOTE 8 PENSION COST (Continued) y

Substantially all employees are covered under the Municipal Employees' Retirement System of Louisiana _except for firemen, policemen, and judges which are covered under the Firefighters' Retirement System, JMunicipal Police Employees' Retirement System, and Louisiana State Employees' Retirement System,respectively. Details concerning these plans follow: •

IMunicipal Employees' Retirement System of Louisiana

Plan description: 1

The Municipal Employee's Retirement System of Louisiana (the System) is a cost-sharing multiple-employer •public employee retirement system (PERS) as established and provided for by R.S. 11:1731 of the Louisiana IRevised Statutes (LRS). The System is composed of two distinct plans, Plan A and Plan B, with separateassets and benefits provisions. Employees of the City are members of Plan A. I

The Municipal Employees' Retirement System of Louisiana issues a publicly available financial report thatincludes financial statements and required supplemental information. That report may be obtained by writing Ito Municipal Employees' Retirement System of Louisiana, 7937 Office Park Boulevard, Baton Rouge, LA ™70809.

Funding policy:

Plan members are required to contribute 9.25% of their annual salary and the City is required to contribute at Ban actuarially determined rate. The current rate is 15.00% of annual covered payroll. The contributionrequirements of plan members and the City are established and may be amended by the System's Board of •Trustees. The City's contributions to the System for the year ended June 30, 2005 was $68,063, equal to the |required contributions for the year.

_

Plan description: NJ

The Municipal Police Employees' Retirement System (the System) is a cost sharing multiple-employerretirement system (PERS).

]42 i

c



NOTE 8 PENSION COST (Continued)

Membership is mandatory for any full-time police officer employed by a municipality of the State of Louisianaand engaged in law enforcement, empowered to make arrest, providing they do not have to pay social securityand providing they meet the statutory criteria. Employees who retire at or after age 5 5 with at least 12 years ofcredited service are entitled to a retirement benefit payable monthly for life, equal to 3-1/3 percent of theiraverage final compensation multiplied by the employee's years of credited service. Final compensation is the

[ employee's monthly earnings during the 36 consecutive or joined months that produce the highest average. TheSystem also provides death and disability benefits. Benefits are established by state statue.

p»L The Municipal Police Employees Retirement System issues a publicly available report that includes financial

statements and required supplemental information. That report may be obtained by writing to Municipal Policef Employee's Retirement System, P.O. Box 94095, Capital Station, Baton Rouge, LA 70809-9095.L

Funding policy:

m Plan members are required to contribute 7.5% of their annual covered salary and the City is required tocontribute 21.5% as established by the state statue. The City's contributions to the System for the year ended

*" June 30, 2005 was $200,708, equal to the required contributions for the year.L

State of Louisiana - Firefighters' Retirement System

•* Plan description:

i The Firefighters' Retirement System (the System) is a cost sharing multiple-employer public employeeretirement system (PERS), as established and provided for by R.S. 11:2251 through 2269 of the Louisiana

^ Revised Statues (LRS).

L Membership is mandatory as a condition of employment beginning on date employed if the employee is on aM permanent basis as a firefighter, not participating in another public funded retirement system and under age fiftyL (50) at date of employment. Employees who retire at or after age 50 with a least 20 years of credit service, or at

or after age 55 with at least 12 years of credited service are entitled to a retirement benefit payable monthly for

B life, equal to 3-1/3 percent of their average final compensation multiplied by the employee's years of creditedservice. Final compensation is the employee's monthly earnings during the 36 consecutive or joined monthsthat produce the highest average. The System also provides death and disability benefits. Benefits are

• established by state statue.

43

CITY OF EUNICE, LOUISIANA «

Notes of Financial Statements WL|

NOTE 8 PENSION COST (Continued)

The Firefighter's Retirement System issues a publicly available financial report that includes financialstatements and required supplemental information. That report may be obtained by writing to Firefighter's _Retirement System, P.O. Box 94095, Capitol Station, Baton Rouge, LA 70804-9095. 1

Funding policy: _

Plan members are required to contribute 8.0% of their annual covered salary and the City is required tocontribute at an actuarially determined rate. The current rate is 24.0% of annual covered payroll. The •contribution requirements of Plan members are established and may be amended by the System's Board of |Trustees. The City's contributions to the System for the year ended June 30, 2005 was $ 100,360, equal to therequired contributions for each year. •

INOTE 9 INTERFUND RECEIVABLES, PAYABLES

Receivables Pavables •

General Fund $ 28,281 $ 300,908Special Revenue Funds- I

Sales Tax Fund 156,760 *St. Landry & Acadia Parish Fire District 24,877

Enterprise Fund- BUtility Fund- 124,888 4,021 *

Fiduciary Fund-Payroll Fund- 102,720 1

Debt Service-Public Improvement Bonds (ST-1997) -_ 82.843 _

$ 412.649 S 412.649 |

NOTE 10 RESTRICTED ASSETS - PROPRIETARY FUND TYPE •

Restricted assets applicable to customers' deposits at June 30, 2005 are as follows:

2005 3Customers' deposits:

Cash $ 200,000Investments, at cost

44

fa.NOTE 11 OPERATING LEASE



m The City is committed under various two year and three year leases for vehicles and longer leases for heavyequipment. The leases are considered for accounting purposes to be operating leases. Total lease expenditures

I for the year ended June 30, 2005, amounted to $20,569. Future minimum lease payments under leases are asfollows:

rL Year Ending

June 30. Amountpih, 2006 $ 20.569

F" NOTE 12 ENTERPRISE FUND OPERATIONSL

Operations of the City of Eunice Utility System consist of a gas distribution system and sewer utility system.p Operating results of the individual utilities for the year ended June 30, 2005 are as follows:m

Gas Department Sewer Departmentr Operating Revenues $ 2,281,504 $ 1,301,478• Operating Expense 1,975,527 1.091.845

Operating Income $ 305.977 $ 209.633^^

*" Operating expenses above include costs which cannot be directly associated with a single department; thusthese expenses have been allocated on the basis of gross utility sales. For the fiscal year ended June 30,2005,

J the Gas and Sewer Utilities provided services to 3,904 and 4,452 customers, respectively.

,. NOTE 13 SELF INSURANCE FUND

bThe City had established a risk management program for its group health and life insurance coverage and

E accounts for it in the Group Insurance Fund, an Internal Service Fund. This program provided employees andtheir dependents health benefits up to $2,500,000 in a lifetime maximum. The City purchased commercialinsurance for claims in excess of $ 10,000 per individual per year of coverage provided by the program.

B

45



NOTE 13 SELF INSURANCE FUND (Continued)

The City adopted the provisions of GASB Statement Number 10, "Accounting and Financial Reporting for RiskFinancing and Related Insurance Issues." Funds of the City participate in the program and make payments tothe Group Insurance Fund based on premiums needed to pay prior and current year claims, administrative cost,and commercial insurance premiums. GASB Statement Number 10 requires that a liability for claims bereported if information prior to the issuance of the financial statements indicates that it is probable that aliability has been incurred at the date of the financial statements and the amount of the loss can be reasonablyestimated. The net claims liability at June 30, 2005 is $-0-.

This program was replaced on March 1, 2003 with conventional health insurance coverage thru UnitedHealthcare.

NOTE 14 CONSTRUCTION IN PROGRESS-RECREATION COMPLEX

1

1

The City, on October 30, 2003, was the recipient of a parcel of land from the Eunice Youth Foundation valued Iat $484,253. The donated property consist of approximately 64.567 acres and is scheduled to be used as a •recreational facility which will be home to eight baseball fields, concession stands, bleachers, parking and otherimprovements. The City has secured a bond in the amount of 2.5 million dollars to build the facility. IConstruction of the facility has began in July of 2005 and the projected date of completion of the facility is May *2006.

NOTE 15 PRIOR PERIOD ADJUSTMENT *

Fund Balance in the fund financial statements at the beginning of the fiscal year June 30, 2005 has been Iadjusted. In 2004, Compensated Absences Payable were overstated; therefore a prior period adjustment of $5 1 ,000 is necessary to increase the Fund Balance. M

NOTE 16 JUDGEMENTS, CLAIMS, AND SIMILAR CONTINGENCIES

The Eunice Fireman's Association has employed an attorney to approach the City about payment of overtime |and about certain rank requirements that the Union feels are imposed on the City, even though the statute inquestion applies to municipalities whose population is greater than 12,000. The argument is premised on the Iffact that Eunice's population in the 1980 census was greater than 12,000 and that because the City Fire •Department operated under cooperative agreements with two independent rural fire districts, that theirpopulations must be included within the city population in determining whether the statute applies. If the Union ^jis correct, the City would have a substantial back due payroll obligation to many of the firemen. The issues •raised are novel but the state Civil Service Office and its attorneys feel that the City's position is the correctlegal position, 1

•i

The City has not recorded any contingencies in connection with any revenues collected by third parties that aresubject to audit or adjustment after year end. H

46

L

L

Lf"

Lrm

Lp>

L

REQUIRED SUPPLEMENTARY INFORMATION

47

CITY OF EUNICE, LOUISIANAGeneral Fund

Budgetary Comparison ScheduleYear Ended June 30, 2005

mIN

Revenues:TaxesLicense and permitsIntergovernmental revenuesFines and forfeituresLiberty Cajun Music ShowMiscellaneous

Total revenues

Expenditures:Current -General governmentPublic safetyPublic worksHealth and welfareCulture and recreationOtherCapital outlayTotal expenditures

Deficiency of revenues overexpenditures

Other financing sources (uses):Operating transfers inOperating transfers out

Total other financing sources

Excess (deficiency) of revenues andother sources over expendituresand other uses

Fund balance, beginningPrior period adjustmentFund balance, ending

VarianceOriginalBudeet

1,059,000434,500325,100

18,500122,500297,754

2.257.354

1,098,5842,666,793

794,7348,300

457,79534,250

-5.060.456

(2,803.102)

2,615,000-

2,615.000

(188,102)

213,148-

I 25.046

FinalBudeet

$ 1,162,170473,820342,375

10,185112,045382,762

2.483,357

1,177,4852,682,887

791,0347,974

569,77037,328

-5,266,478

(2.783.121)

2,613,794(2,224)

2,611,570

(171,551)

360,127-

$ 188.576

FavorableActual (Unfavorable)

$ 1,116,356458,845391,742

9,45549,200

533,9432,559.541

1,231,8352,772,097

818,26110,893

658,93837,94010.000

5,539,964

(2,980,423)

2,745,894(2.224)

2,743,670

(236,753)

300,54051,000

$ 114.787

$ (45,814)(14,975)49,367

(730)(62,845)151,18176,184

(54,350)(89,210)(27,227)

(2,919)(89,168)

(612)(10,000)

(273,486)

(197.302)

132,100-

132.100

(65,202)

(59,587)51,000

S (73,789)

II

]

48

rL

L,r1

L

Revenues:TaxesIntergovernmental revenuesInterestMiscellaneous

Total revenues

Expenditures:Current-General governmentCulture and recreation

Capital outlayDebt service-

Principal retirementInterest charges

Total expenditures

Excess (deficiency) ofrevenues overExpenditures

CITY OF EUNICE, LOUISIANASales Tax Special Revenue Fund


OriginalBudget

$3,410,000

15,00050,000

3,475,000

106,718104,000

1,266,000

5,431611

1,482,760

1,992,240

FinalBudget

$3,584,651748,85541,163

104.0884,478,757

148,402104,000

1,961,373

5,431623

2,219,829

2.258.928

Actual

$ 3,606,753883,40844,744

104,0884,638,993

217,839126,516

2,017,887

5,432611

2.368.285

2,270,708

Favorable(Unfavorable)

$ 22,102134,553

3,581

160,236

(69,437)(22,516)(56,514)

(1)12

(148.456)

11.780


Total other financinguses

Excess (deficiency) ofrevenues and othersources over expendituresand other uses

Fund balances, beginning

Fund balances, ending

(1,964,1721 (2.216.717) (2.469,118)

(1,964,172) (2,216,717) (2.469,118)

28,068 42,211

2,094,027 2.030,612

(198,410)

2.030.610

S 2.122.095 S 2.072.823 $ 1.832.2QQ49

(252,401)

(252.401)

(240,621)

(2)

CITY OF EUNICE, LOUISIANARecreation Complex Construction

Capital Projects FundBudgetary Comparison Schedule


Revenues:TaxesIntergovernmental revenuesInterestMiscellaneous

Total revenues

Expenditures:Current-General governmentCulture and recreation

Capital outlayBond Issue CostDebt service-

Principal retirementInterest charges

Total expenditures

Excess (deficiency) ofrevenues overExpenditures

Other financing sources (uses):Proceeds from bondOperating transfers inOperating transfers out

Total other financingUses




OriginalBudget

FinalBudget

35,120

35.120

23,72839,656

63,384

(28,264)

Actual

35,120

35,120

23,72839,656

63,384

(28.264)

2,550,000 2,550,000316,913 316,913

(323,710) (323,710)

2.543.203 2.543,203

2,514,939 2,514,939


mm

iiii

i

S 2.514.939 S 2.514.939 $

50


City of Eunice Sinking Fund 1997 Debt Service FundPublic Improvement Bonds Series ST- 1997


Variance-

rL

Lp-

L

LP-

L**

wF"

L

Revenues:InterestIndustrial lease payments

Total revenues

Expenditures -Debt service:

Principal retirementInterest paidPaying agent fees

Total expenditures

Deficiency of revenuesover expenditures

Other financing sources:Operating transfers inOperating transfers out

Total other financing sources

Excess of revenues and othersources over expendituresand other used



OriginalBudget

$ 3,255

3,255

85,00019,720

10104,730

(101,475)

104,172

104,172

2,697

49,724

$ 52,421

FinalBudget

$ 3,255

3,255

85,00019,720

10104,730

(101,475)

104,172

104,172

2,697

49,724

S 52.421

Actual

$ 3,255

3,255

85,00019,720

10104.730

(101.475)

104,172

104,172

2,697

49.724

$ 52.421


$_

-

-

-

_

-

S

51

H

Mil

OTHER SUPPLEMENTARY INFORMATION

3

52 i

b,•M

k

L

p-

hi

F"

L

c

OTHER FINANCIAL INFORMATION

53


Budgetary Comparison Schedule - RevenuesYear Ended June 30, 2005

Revenues:Taxes -

Property taxesInterest and penaltyFranchise fees

Licenses and permitsOccupational licensesLiquor licensesBuilding permit fees

Intergovernmental revenues-Grant revenueVideo pokerRacino ReceiptsBeer taxCorrection receiptsHousing authoritypayment in lieu of tax

Fire insurance taxFines and forfeits-

Court finesLiberty Cajun Music ShowMiscellaneous

Total revenues

Other financing sources:Operating transfer in

Total revenues and othersources

OriginalBudget

FinalBudget Actual

VarianceFavorable

(Unfavorable^

$ 488,5004,500

566,000

383,50025,50025,500

135,50084,00024,00045,500

7,60028,500

18,500122,500297.754

2,257,354

2,615,000

$ 519,3254,066

638,779

412,00021,82040,000

13,504147,16676,72127,17139,803

7,60030,410

10,185112,045382.762

2,483,357

2,613,794

$ 528,8447,995

579,517

396,35921,32041,166

45,408161,73786,38127,80930,294

7,60032,513

9,45549,200533.943

2,559,541

2,745,894

$ 9,5193,929

(59,262)

(15,641)(500)1,166

31,90414,5719,660638

(9,509)

-2,103

(730)(62,845)151.18176,184

132,100

I

1•

ii1•

1

1•

1

$ 4.872.354 S 5.097.151 $ 5.305.435 $ 208.284

54 i


Budgetary Comparison Schedule - ExpendituresYear Ended June 30, 2005

General government:AdvertisingCity CourtCity Hall maintenanceCivil Service BoardCoronerDrug testingDuesGeneral insuranceGroup insuranceIndustrial inducementMain Street Program expenseMaterials and suppliesOffice expensesOtherPayroll taxes and retirementProfessional feesSalariesStreet lightingTax roll preparationTravel and meetingsUtilities and telephoneZoning Board

Total general government

Public safety:Police -

Drug testingGeneral insuranceGroup insuranceJail expenseOtherPayroll taxesRetirement and pensionSalariesSupplies and materialsTelephone and utilitiesTrainingTransportation

Total police

OriginalBudget

$ 17,400121,13422S0001,9008,500800

9,00043,70086,0004,1001,20059,70012,90065,90054,45033,600349,000117,0008,50012,50068,500

8001.098.584

2,000188,700152,000108,50018,58916,600

211,0391,001,60052,64015,5009,000

106.100$ 1,882.268

FinalBudget

$ 20,548137,19521,0181,8727,658540

7,80067,49589,2664,0205,17959,71412,27084,36265,32931,194346,997123,3687,66815,73667,500

7561,177,485

2,072173,526142,314123,08044,15017,502269,861994,21959,20917,6101,642

112,949$ 1,958,134

Actual

$ 20,254137,48024,6841,8727,486810

7,45080,78498,6394,0203,53232,60510,620108,96983,12439,857352,281124,6767,66815,28968,979

7561,231,835

2,297205,169154,167106,21054,96217,220

271,8761,003,24763,04217,8104,811

118,400$2,019,211

VarianceFavorable

(Unfavorable)

$ 294(285)

(3,666)-

172(270)350

(13,289)(9,373)

-1,64727,1091,650

(24,607)(17,795)(8,663)(5,284)(1,308)

-447

(1,479)-

(54,350)

(225)(31,643)(11,853)16,870(10,812)

282(2,015)(9,028)(3,833)(200)

(3,169)(5,451)

$ (61,077)

55


Budgetary Comparison Schedule - Expenditures (Continued)Year Ended June 30, 2005

PIP

Fire-General insuranceGroup insuranceOtherPayroll taxesRepairs and maintenanceSalariesSupplies and materialsTelephone and utilitiesTransportationTravel and meetingsVolunteer firemen

Total fire

Total public safety

Public works:Streets -

Drug testingGeneral insuranceGroup insuranceOtherPayroll taxesRepairs and maintenanceSalariesSigns and materials

Total streets

Sanitation -Vehicles and equipment

MaintenanceOther

Total sanitation

Total public works

Health and welfare:Animal control

OriginalBudget

94,52561,200

3,80089,8007,500

445,00023,00019,50023,2002,500

14,500784,525

FinalBudget

$ 63,44750,6645,201

102,7353,229

417,81613,38124,11425,420

1,74417,002

724,753

Actual

$ 80,31450,6322,001

103,66717,517

428,39213,79023,82414,0031,744

17,002752,886

VarianceFavorable

(Unfavorable)

$ (16,867)32

3,200(932)

(14,288)(10,576)

(409)290

11,417--

(28,133)

2.666,793 2.682,887 2.772.097

15,000

15,000

794,734

8,300

791,034

7,974

818.261

10,893

(89,210)

500104,43470,00017,60048,00077,700424,50037,000779,734

72073,33062,86719,36758,158114,192398,68237,358764,674

99083,40963,08932,5186,46675,560455,41469,863787,309

(270)(10,079)

(222)(13,151)51,69238,632(56,732)(32.505)(22,635)

26,360

26,360

27,3503,60230,952

(990)(3,602)(4.592)

(27.227)

(2,919)

I

II33

56 i


Budgetary Comparison Schedule - Expenditure (Continued)Year Ended June 30, 2005

L

L

LF"

L

OriginalBudget

Culture and recreation:Contract labor $ 20,000General and group insurance 24,845July 4 fireworksLiberty Cajun Music Show

and Liberty Cultural Assoc 110,100Library maintenance 19,225Maintenance 24,400Museum 35,850Neighborhood centers 116,3 00Other 4,200Salaries and payroll taxes 53,875Supplies 31,000Telephone and utilities 18,000

Total culture and recreation 457,795

Other:Airport expenditures 34,250

Capital outlay -

Total expenditures 5.060,456

Other financing uses:Operating transfers out -

Total expendituresand other uses $ 5.060.456

FinalBudset

$ 50,17123,288

-

118,00618,07735,94931,944

121,96460,22472,67521,13216.340

569,770

37,328

5,266,478

2,224

Actual

$ 71,67929,92110,235

116,38319,74739,71732,525

127,64146,38376,13970,64117,927

658,938

37,940

10,000

5,539,964

2,224

VarianceFavorable

(Unfavorable)

$ (21,508)(6,633)

(10,235)

1,623(U670)(3,768)

(581)(5,677)13,841(3,464)

(49,509)(1,587)

(89,168)

(612)

(10,000)

(273,486)

S (273.486)

57

i

NONMAJOR GOVERNMENTAL FUNDS

-

^

58

HIM

Lm

^ASSETS

CITY OF EUNICE, LOUISIANANonmajor Governmental Funds

Balance SheetJune 30, 2005

SpecialRevenue

Cash and cash equivalentsReceivables (net of allowance for uncollectibles):

AccountsTotal assets

LIABILITIES AND FUND BALANCE

Liabilities:Accounts payableDue to Other Funds

Total liabilities

Fund balances:Reserved debt serviceUnreserved, undesignated

Total fund balances

Total liabilities and fund balances

$ 57,277

4.775S 62.052

DebtService

$226,157

2005Totals

$283,434

4,775$ 288.209

$ 45324.87825,331

36,72136,721

$ 62.052

$

_

226,157

226,157

$226.157

$ 45324,87825,331

226,15736,721262,878

$288.209

59

Pi

CITY OF EUNICE, LOUISIANANonmajor Governmental Funds

Statement of Revenues, Expenditures and Changes inFund Balances

Year Ended June 30, 2005i

RevenuesIntergovernmental revenuesFines, forfeitures and bondsInterestMiscellaneous

Total revenues

Expenditures:Current-General governmentPublic safetyCapital Outlay

Debt Service-Principle retirementInterest paidOtherTotal expenditures


Other financing sources (uses):Operating transfers inOperating transfers outTotal other financingsources (uses)Excess (deficiency) of revenuesand other sources overexpenditures and other uses

Fund balances, beginningFund balances, ending

SpecialRevenue

$ 149,2155,658

64270

155,585

7,64853,673

115,734

177.055

(21,470)

2,223

2,223

(19,247)55.968

$ 36.721

DebtService

2,677

2,677

100.230

(97,553)

323,710

323.710

226,157

S 226.157

2005Totals

149,2155,6583,31970

158.262

---

40,00060,105

125

7,64853,673

115,734

40,00060,105

125277,285

(119,023-)

325,933

325.933

206,91055,968

$ 262.878

ii

i

]

3

60

i equipment.

f*m

NONMAJOR SPECIAL REVENUE FUNDS

Special revenue funds are used to account for specific revenues that are legally restricted to expendituresfor particular purpose.

CRIMINAL TASK FORCE

To account for the receipt and expenditure of grant funds in connection with the purchase of police

PUBLIC SAFETY TESTING FUND

To account for receipts and expenditures associated with court fees collected in connection with drug andalcohol related driving offenses.

COURT APPEARANCE BOND FUND

To account for receipts and expenditures associated with the receipt of appearance bonds collected onarrests and traffic citations.

ST. LANDRY & ACADIA PARISH FIRE DISTRICT

To account for receipts and expenditures associated with the cooperative agreement between the city andarea fire districts, to provide fire protection.

WITNESS FEES FUND

To account for receipts and expenditures associated with witness fees collected by City Court.

LAW ENFORCEMENT BLOCK GRANT

To account for receipts and expenditures associated with funds received from the Bureau of Justice for thehiring of non-administrative law enforcement officers and support personnel.

61

CITY OF EUNICE, LOUISIANANonmajor Special Revenue Funds

Combining Balance SheetJune 30,2005

CriminalTaskForce

PublicSafetyTestingFund

CourtAppearance

BondFund

St. Landry& AcadiaParish FireDistrict

ASSETS

CashInvestments, at costAccounts ReceivableAd valorem taxes receivable(net of allowance foruncollectible taxes of $50)Due from other fundsGrant Fund ReceivablePrepaid items

Total assets

LIABILITIES AND FUNDBALANCE

$ - $ 3,942 $ 11,427

450

$ 39,664

4,325

II

Liabilities:Accounts payableAccrued liabilitiesDue to other fundsDeferred revenue

Total liabilities

Fund balances:Reserved for prepaid itemsUnserved, undesignated

Total fund balances

Total liabilities andfund balances

3,9423.942

$ 352

352

11,52511.525

S 3.942 $ 11.877

19.11119,111

$ 43.989

3

3

62

i

WitnessFeesFund

LawEnforcementBlock Grant

Total2005

$ 1,678 $ 566 $ 57,277

4,775

S 1.678 $ 5 6 6 $ 62.052

$ 101

101

$ 453

24,878

25,331

1,5771,577

566566

36,72136,721

$ 1.678 $ 62.052

P

63

CITY OF EUNICE, LOUISIANANonmajor Special Revenue Funds

Combining Statement of Revenues, Expenditures and Changes in Fund BalancesYear Ended June 30, 2005

m

RevenuesIntergovernmental revenuesFines, forfeitures and bondsInterestMiscellaneous

Total revenues

Expenditures;Current-General governmentPublic safetyCapital outlayTotal expenditures


Other financing sources (uses):Operating transfers inOperating transfers outTotal other financing uses


Fund balances,(deficits) beginning


CriminalTaskForce

141

141

31.62631.626

(31,485)

1

1

(31,484)

31,484

PublicSafetyTesting

Fund

$ 3,065

21

3,086

1,934

1,934

1,152

-

_

1,152

2,790

$ 3.942

CourtAppearance

BondFund

$5,658

705,728

6,144375

6,519

(791)

-

(791)

12,316

$ 11.525

St. Landry& Acadia

Parish FireDistrict

$ 120,959

453

121,412

109,590

109,590

11,822

-

_

11,822

7,289

$ 19.111

i

iii

3

64

WitnessFeesFund

$ 5,191

11

5,202

5,714

5,714

(512)

-

_

(512)

2,089

LawEnforcementBlock Grant

$ 20,000

16

20,016

21,67221,672

(1,656)

2,222

2,222

566

Total2005

$ 149,2155,658

64270

155.585

7,648115,73453,673

177,055

(21.470)

2,223

2,223

(19,247)

55,968

$ 1.57 $ 566 $ 36.721

65

CITY OF EUNICE, LOUISIANANonmajor Special Revenue Fund

Criminal Task ForceStatement of Revenues, Expenditures and Changes in Fund Balances

Budget (GAAP Basis) and ActualYear Ended June 30, 2005

Revenues:Intergovernmental revenuesInterest

Total revenues

Expenditures:Current-General governmentCapital OutlayTotal expenditures

Excess (deficiency) of revenuesover expenditures

Other financing sources (uses):Operating transfers inTotal other financing uses




Budget

31.62631.626

(31.626)

(31,626)

31,484

Actual

141141

31.62631.626

(31.485)

(31,484)

31.484

m

Variance-Favorable

(Unfavorable)

141141

141

142

$ 142

iii

66

r-

Lr •

L

L


Public Safety Testing FundStatement of Revenues, Expenditures and Changes in Fund Balances


Revenues:Intergovernmental revenuesInterestMiscellaneousTotal revenues

Expenditures:Current-General governmentTotal expenditures






Budget

$ 3,00020

3.020

1,9341,934

1.086

1,086

2,789

$ 3.875

Actual

$ 3,06521

3,086

1,9341,934

1,152

1,152

2,790

S 3.942

Variance -Favorable

(Unfavorable)

651

66

66

66

_J.

67

67


Court Appearance FundStatement of Revenues, Expenditures and Changes in Fund Balances


Revenues:Fines, forfeitures and bondsMiscellaneousTotal revenues

Expenditures:Current-Public SafetyCapital OutlayTotal expenditures



Total other financing uses




Budget

$ 5,600

5,600

(850)

12.316

$ 11.466

Actual

$ 5,65870

5,728

(791)

(791)

12,316

S 11.525

Variance -Favorable

(Unfavorable)

5870

128

6,450

6,450

6,144375

6,519

306(375)(69)

59

59

m

I

68

I


St. Landry & Acadia Parish Fire DistrictStatement of Revenues, Expenditures and Changes in Fund Balances


Revenues:IP- Intergovernmental revenues^ Interest

Total revenuesf™

ta Expenditures:Current-

•" Public safetyha Total expenditures

*" Excess (deficiency) of^ revenues over expenditures

'. Other financing sources (uses):*" Operating transfers in^ Operating transfers out

Total other financing uses

^. Excess (deficiency) of. revenues and other

sources over expenditures

C and other uses


I Fund balances, ending

Budget

$ 121,398567

121,965

109.509109,509

12.456

12,456

7.289

$ 19.745

Actual

$ 120,959453

121.412

109,590109.590

11.822

11,822

7,289

S 19.111

Variance-Favorable

(Unfavorable)

$ (439)'1141[553]

[SIrsr

(634)

$ (6341

69


Witness Fees FundStatement of Revenues, Expenditures and Changes in Fund Balances



Expenditures:Current-General governmentTotal expenditures






Budget

$ 6,00012

6,012

5,5005,500

512

512

2,089

S 2.601

Actual

$ 5,19111

5,202

5,7145,714

(512)

2,089

$ 1.577

Variance -Favorable

(Unfavorable)

$ (809)(1)

(1,024)

$ (1.0241

I

I

70

I

ti^


Law Enforcement Block GrantStatement of Revenues, Expenditures and Changes in Fund Balances



Expenditures:Current-Public SafetyCapital OutlayTotal expenditures

Excess (deficiency) of revenuesOver expenditures

Other financing sources (uses)Operating transfers inOperating transfers outTotal other financing uses


Fund balances (deficits), beginning


Budget

$ 11,567

11,567

9,840

9,840

1,727

1,727

575

$ 2.302

Actual

$ 20,00016

20,016

21.67221.672

(1,656)

2,222

2,222

566

S 566

Variance -Favorable

(Unfavorable)

$ 8,43316

8,449

9,840(21.672)(11.832)

(3,383)

2,222

2.222

(1,161)

(575)

c71

1*1HI

mm


^^i

3

72

i

NONMAJOR DEBT SERVICE FUNDS

- RECREATION COMPLEX DEBT SERVICE FUND*

To accumulate monies for payment of the $ 2,550,000 Recreation Complex Sales Tax Revenue Bonds,"" Series 2004.tm

•I

73«*

L.

CITY OF EUNICE, LOUISIANANonmajor Debt Service Funds

Balance SheetJune 30, 2005

Recreation ComplexDebt Service Fund

ASSETS

Cash $ 226,157 JjTotal assets $ 226.157

LIABILITIES AND FUND BALANCE •^£P

Liabilities:Accounts payable

Total liabilities

Fund balances:Unreserved, undesignated 226.157

Total fund balances 226.157

Total liabilities andfund balances $ 226.157

74

i

CITY OF EUNICE, LOUISIANANonmajor Debt Service Funds

Statement of Revenues, Expenditures and Changes in Fund BalancesYear Ended June 30, 2005

RevenuesInterestMiscellaneous

Total revenues

Expenditures:Service-Principle RetirementInterest PaidOtherTotal expenditures




Fund balances,(deficits) beginning


Budget

$ 2,677

2,677

40,00060,105

125100.230

(97.553)

323,710

323.710

226,157

Recreation ComplexDebt Service Fund

$ 2,677

2.677

40,00060,105

125100.230

(97.553)

323,710

323.710

226,157

$ 226.157


Variance

75

3


i

i

3

76

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ENTERPRISES FUNDS

UTILITY FUND

To account for the city's operation of the gas and sewer departments.

77

CITY OF EUNICE, LOUISIANAEnterprise Fund

Utility FundStatement of Revenues, Expenses and Changes in Net Assets

Year Ended June 30, 2005Gas

DepartmentOperating revenues:

Charges for servicesOther billings to customersTaxes - Sewer Maintenance

Total operating revenues

Operating expense:Payroll and related benefitsGas purchasesSupplies and materialsRepairs and maintenanceOffice expensesProfessional feesInsurance - generalDepreciationGroup insuranceBad debtPermitsUtilities and telephoneMiscellaneous

Total operating expenses

Operating income

Nonoperating income:Interest earned on investmentsOther revenue

Total nonoperating income

Income before other income andtransfers

Other income and transfers:Capital ContributionsOperating transfers inOperating transfers out

Total other income and transfers

Change in net assets

Net assets, beginningNet assets, ending

Total

3,426,13560,68696.161

3,582,982

3,067.372

515.610

6,90210.18517.087

532.748

365,882234,300

(905.000)(304.818)

227,930

8.495.9058.723.835

78

2,247,69333,811

2.281,504

1.975.527

305.977

SewerDepartment

$ 1,178,44226,87596.161

1.301.478

527,9821,288,559136,694256,47330,91613,069103,072300,90388,0647,50613,208230,76870.158

274,3451,288,55943,70563,64725,86811,50062,18693,86252,6827,506

-1,824

49,843

253,637-

92,989192,8265,0481,569

40,886207,04135,382

-13,208228,94420.315

ii1•

I™

1.091.845

209.633

i

i

VIGE^TUJAGUEA CORPORATION OF CERTIFIED PUBLIC ACCOUNTANTS

151 N. 2MB STREET

P. 0. BOX 1006

EUNICE, LOUISIANA 70535

SHIRLEY VIGE, JR., C.P.A.FRANK G. TUJAGUE, C.P.A.

DOMINIQUE M. NOEL, C.P.A.


FAX:337-457-8743

c

ii

Independent Auditor's Report on Compliance and Other Matters and on Internal Control overFinancial Reporting Based on an Audit of Financial

Statements Performed in Accordance with Government Auditing Standards

The Honorable Mayor Lynn LeJeuneand Members of the CouncilCity of Eunice, Louisiana

We have audited the financial statements of the governmental activities, the business type activities, each majorfund, and the aggregate fund information of the City of Eunice, Louisiana, as of and for the year ended June 30,2005, which collectively comprise the City of Eunice's basic financial statements and have issued our reportthereon dated November 4, 2005. We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City of Eunice, Louisiana's financial statements arefree of material 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 offinancial statement amounts. However, providing an opinion on compliance with those provisions was not anobjective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed noinstances of noncompliance or other matters that are required to be reported under Government AuditingStandards.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the City of Eunice, Louisiana's internal control overfinancial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on thefinancial statements and not to provide an opinion on the internal control over financial reporting. However, wenoted certain matters involving the internal control over financial reporting and its operation that we consider tobe reportable conditions. Reportable conditions involve matters coming to our attention relating to significantdeficiencies in the design or operation of the internal control over financial reporting that, in our judgment, couldadversely affect the City of Eunice, Louisiana's ability to record, process, summarize and report financial dataconsistent with the assertions of management in the financial statements. The reportable condition is described inthe accompanying schedule of findings and questioned costs as item 05-1.

79

m

A material weakness is a condition in which the design or operation of one or more of the internal controlcomponents does not reduce to a relatively low level the risk that misstatements caused by error or fraud in

•amounts that would be material in relation to the general purpose financial statements being audited may occurand not be detected within a timely period by employees in the normal course of performing their assignedfunctions. Our consideration of the internal control over financial reporting would not necessarily disclose allmatters in the internal control that might be reportable conditions and, accordingly, would not necessarily discloseall reportable conditions that are also considered to be material weaknesses. We believe item 05-1 described inthe schedule of findings and questioned cost is a material weakness.

This report is intended solely for the information and use of the City Council, management and LegislativeAuditor and is not intended to be and should not be used by anyone other than specified parties. Under RevisedStatue 24:513, this report is distributed by the Legislative Auditor as a public document.

Vige & Tujague, CPA'sNovember 4, 2005

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80

cLcccE

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II

I[

VIGEi&TUJAGUEA CORPORATION OF CERTIFIED PUBLIC ACCOUNTANTS

151 N.2ac STREETP. 0. BOX 1006

EUNICE. LOUISIANA 70535SHIRLEY VICE, JR., C.P.A.FRANK G. TUJAGUE, C.P.A.

DOMINIQUE M. NOEL, C.P.A.


FAX:

337-457-8743

REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJORPROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE

WITH OMB CIRCULAR A-133

Honorable Mayor Lynn LeJeuneand Members of the CouncilCity of Eunice, Louisiana

Compliance

We have audited the compliance of the City of Eunice, Louisiana with the types of compliance requirementsdescribed in the U. S. Office of Management and Budget (OMB1 Circular A-133 Compliance Supplement that areapplicable to each of its major federal programs for the year ended June 30, 2005. The City of Eunice,Louisiana's major federal programs are identified in the summary of audit results section of the accompanyingschedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts andgrants applicable to each of its major federal programs is the responsibility of the City of Eunice, Louisiana'smanagement. Our responsibility is to express an opinion on the City of Eunice, Louisiana's compliance based onour audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the UnitedStates of America; the standards applicable to financial audits contained in Government Auditing Standards.issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States. LocalGovernments, and Nonprofit Organizations. Those standards and OMB Circular A-133 require that we plan andperform the audit to obtain reasonable assurance about whether noncompliance with the types of compliancerequirements referred to above that could have a direct and material effect on a major federal program occurred.An audit includes examining, on a test basis, evidence about the City of Eunice, Louisiana's compliance withthose requirements and performing such other procedures as we considered necessary in the circumstances. Webelieve that our audit provides a reasonable basis for our opinion. Our audit does not provide a legaldetermination on the City of Eunice, Louisiana's compliance with those requirements.

In our opinion, the City of Eunice, Louisiana complied, in all material respects, with the requirements referred toabove that are applicable to its major federal program for the year ended June 30, 2005.

Internal Control Over Compliance

The management of the City of Eunice, Louisiana is responsible for establishing and maintaining effectiveinternal control over compliance with requirements of laws, regulations, contracts, and grants applicable tofederal programs. In planning and performing our audit, we considered the City of Eunice, Louisiana's internal

81

control over compliance with requirements that could have a direct and material effect on a major federalprogram in order to determine our auditing procedures for the purpose of expressing our opinion on complianceand to test and report on internal control over compliance in accordance with OMB Circular A-133.

Our consideration of the internal control over compliance would not necessarily disclose all matters in theinternal control that might be material weaknesses. A material weakness is a reportable condition in which thedesign or operation of one or more of the internal control components does not reduce to a relatively low level therisk that noncompliance with applicable requirements of laws, regulations, contracts and grants caused by error orfraud that would be material in relation to a major federal program being audited may occur and not be detectedwithin a timely period by employees in the normal course of performing their assigned functions. We noted nomatters involving the internal control over compliance and its operation that we consider to be materialweaknesses.

This report is intended for the information and use of the City of Eunice, Louisiana, management, the appropriateLegislative Body, and federal awarding agencies and pass-through entities and is not intended to be and shouldnot be used by anyone other than these specified parties.

iVige & TujagueNovember 4, 2005 I

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82

1I

CITY OF EUNICE, LOUISIANASCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30. 2005

^ SOURCE OF FEDERAL ASSISTANCE/i AGENCY NAME(S)

INDIRECT ASSISTANCE

United States DepartmentOf Justice

PROGRAM NAMECFDA

NUMBER EXPENDITURES

Local Law EnforcementsBlock Grant Programs 16.592 $ 48,228

P" United States Departmentm Of Housing and Urban

DevelopmentsCommunity DevelopmentBlock Grant 14.219 240,882

L United States Department^ Of Transportation

Airport ImprovementProgram 20.106 782.295

S 1.071.405

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

83

CITY OF EUNICE .LOUISIANANOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

JUNE 30, 2005

NOTE 1 - GENERAL

The accompanying schedule of expenditures of federal awards presents the activity of all federal financial Jassistance programs of the City of Eunice, Louisiana. The reporting entity is defined in Note 1 to the financialstatements. All federal financial assistance received directly from federal agencies as well as federal financial •assistance passed through other government agencies are included on the schedule. •

NOTE 2 - BASIS OF ACCOUNTING f

The accompanying schedule of expenditures of federal awards is presented using the modified accrual basisof accounting for the federal assistance. The basis of accounting is described in Note 1 to the financial Istatements. ™

NOTE 3 - RELATIONSHIP TO FINANCIAL STATEMENTS I

Of the total amount of the federal financial assistance revenue, only the reimbursement amount is recorded _in the financial statements as revenues. Also, only the expenditures which were later reimbursed are recorded in 1the financial statements as expenses.

"1J

•IJ

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

84 i


*•" Schedule of Findings and Questioned Costs^ Year Ended June 30, 2005

ta We have audited the financial statements of City of Eunice, Louisiana as of and for the year ended June 30,2005,and have issued our report thereon dated November 4,2005. We conducted our audit in accordance with auditing

L standards generally accepted in the United States of America and the standards applicable to financial auditscontained in Government Auditing Standards, issued by the Comptroller General of the United States. Our auditof the financial statements as of June 30, 2005, resulted in an unqualified opinion.

Section I. Summary of Auditor's Reports

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

Internal ControlMaterial Weaknesses X Yes No Reportable Conditions X Yes NoComplianceCompliance Material to Financial Statement Yes X No

b. Federal Awards

Internal ControlMaterial Weaknesses Yes X No Reportable Conditions Yes X No

No reportable conditions relating to the audit of the major federal award programs are reported in the Report on^ Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in. Accordance with OMB Circular A-133.

p. The auditor's report on compliance for the major federal award program for the City of Eunice, LouisianaL expresses an unqualified opinion.

P- There were no audit findings relative to the major federal award program for the City of Eunice, Louisiana.

The program tested as a major program was the Airport Improvements Program CFDA 20.106.

The threshold for distinguishing Types A and B programs was $300,000.

• The City of Eunice, Louisiana was not determined to be a low-risk auditee.

85


Schedule of Findings and Questioned CostsYear Ended June 30, 2005

Section II. Financial Statement Findings

05-1 Individual Segregation of Accounting Functions

Finding;

Due to the small number of accounting personnel, the City did not have adequate segregation offunctions within the accounting system. •

Recommendation:

1Based on the size of the operation and the cost-benefit of additional personnel, it may not be •feasible to achieve complete segregation of duties.

Response: *

A complete segregation of duties is not feasible due to the cost-benefit of hiring additional Rpersonnel and the size of the City.

Section III. Findings and Questioned Costs Relating to Federal Programs

Findings and Questioned Costs Relating to Federal Programs

None

ii

i

86 i

- CITY OF EUNICE, LOUISIANA

**•Status of Prior Years Findings and Questioned Costs

ta Year Ended June 30, 2005

i"i Individual Segregation of Accounting Functions

„ 04-1 Finding:

h.Due to the small number of accounting personnel, the City did not have adequate segregation of

P« functions within the accounting system.

LRecommendation;

^L Based on the size of the operation and the cost-benefit of additional personnel, it may not be

feasible to achieve complete segregation of duties.»••

*• Response:

^" A complete segregation of duties is not feasible due to the cost-benefit of hiring additional*• personnel and the size of the City.

** Status:ta

^ This finding was repeated in fiscal year end, June 30, 2005.

faPayroll Records and Informational Reporting

^ta 04-2 Finding:

f* There is a lack of controls in connection with the payroll record function. It was noted that there^ were several employee payroll files without proper documentation to verify rates of pay.

Recommendation:

All payroll files should have proper authorization for wage rates.

Response:

The city payroll clerk will review all employee payroll files and update "Change of Status" formsand have these forms approved by the mayor.

Status:

This finding was cleared fiscal year end, June 30, 2005.

87


Status of Prior Years Findings and Questioned CostsYear Ended June 30, 2005

mm

04-3 Finding:

business. The portion that was for personal use was not reported as additional compensation onthe employees W-2. In addition, several employees were given auto reimbursement allowances for •use of their personal vehicles for city business under a non- accountable plan and were not added to •compensation on the W-2's.

Clothing allowances for police personnel were not reported as additional compensation on the •employees W-2's.

Recommendation: •

All personal use of vehicles and taxable fringe benefits should be accounted for following the IInternal Revenue Service guidelines and reported as additional compensation as required.

Response: B

The city payroll clerk has corrected the errors and has implemented the Internal Revenue Service _guidelines as to personal use of vehicles and other taxable fringe benefits. M

Status: m

IThis finding was cleared fiscal year end, June 30, 2005.

Contracts & Agreements

04-4 Finding:

The City of Eunice has entered into an intergovernmental agreement with the Fire ProtectionDistrict No. 4 of Acadia Parish and the Fire Protection District No.6 of St Landry Parish, to aid inthe provision of fire protection. That agreement calls for the collection of property taxes by theFire Districts and the remittance of the tax to the City of Eunice, less necessary expenses.

The contract states that the City of Eunice and the Fire Districts are to reach an agreement as to theamount of necessary administrative expenses that the Districts are entitled to withhold from thetaxes collected. We were unable to obtain from the City or the Fire Districts, a written agreementthat details the procedures and amounts to be remitted. During the audit for the year ended, June30,2005, it was discovered that an error was made by the St. Landry Fire Protection District No. 6in the amount of $6,912 based on the verbal agreement between the District and the City.

i


Status of Prior Years Findings and Questioned CostsYear Ended June 30, 2005

Recommendation:

The City of Eunice and Fire District's representatives should meet to reduce to writing, anagreement as to the amount of necessary administrative expenses allowed and a procedure for theFire Districts to report total amounts collected and remitted to the City.

Response:

A meeting will be called to have all interested parties to gather and to reduce to writing, anagreement that is agreeable to all parties, as to the amount of necessary administrative expensesallowed and a procedure to account to the City of Eunice for the collection and remittance of thetaxes.

Status:"

•• This finding was cleared fiscal year end June 30, 2005.

89

CITY OF EUNICE, LOUISIANA ""Schedule of Per Diem Paid to Members of the Council _


mMayor, E. Lynn LeJeune $ 28,410I. Jackson Burson 13,700Nolton Anderson 7,120Louis Pavur 7,120Chawana Fontenot 7,120Charles Atchison 7,120

S 70.590

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city of eunice - louisiana...eunice, louisiana 70535 shirley vige, jr., c.p.a. frank g. tujague,...

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