^^9f^
TOWN OF MAMOU, LOUISIANA
Financial Report
Year Ended December 31,2012
Uri(der provisions of state law. this report is a public document Acopy of the report has been submitted to the entity and other appropriate public officials The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and v /here appropriate at the office of the pansh clerk of court
JUL 0 3 2013 Release Date
C Burton Kolder CPA* Russell F Champasne CPA* Victof R. Slaven CPA-Gerald A. Thibodeaux. Jr CPA* RobeftS Carter. CPA-ArthuT R. Moan. CPA" Penny Angelle Scruggtns. CPA Chnstine C Doucot. CPA
KOLDER, CHAMPAGNE, SLAVEN & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS
LLC
OFFICES
Wanda F Arcement CPA.CVA Alien J LaBry. CPA Albert R Leoer CPA PFS CSA' Marsnall W Guidry CPA Stephen R Moore Jr CPA.PFS CFP*ChFC** James R Roy CPA Robert J Metz, CPA AlanM Taylor CPA Ketty M. Ooucet. CPA Chery L. Bartley CPA Mandy B SeK CPA Peul U Delcambre Jr CPA Knstm B Dauzat. CPA Matthew E Margaglio CPA JaneR Hebert CPA Bryan K. Joubert. CPA Stephen J Arwlervon CPA W Jeffrey Lowry CPA
Retired-ConrBdO Chapman CPA* 2006 Tynes E Mixon Jr CPA 2011 P Troy Courville, CPA* 2013
163 South Beadle Rd Lafayette LA 70508 Phone (337) 232-4141 Fax (337) 232-8860
113 East Bridge St. Breaux Bridge, LA 70517 Phone (337) 332-4020 Fax (337) 332-2687
1234 David Dr Ste 203 Morgan City. LA 70380 Phone (985) 384-2020 Fax (985) 364-3020
408 West Cotton Street Ville Platte, LA 70588 Phone (337) 383-2792 Fax (337) 363-3049
332 West Sixth Avenue Obedia LA 70655 Phone (337) 63&^737 Fax (337) 639-4568
450 East Main Street Newlbena LA70560
Phone (337) 367-9204 Fax (337) 367-9208
200 South Main Street Abbeville. LA 70510
Phone (337) 633-7944 Fax (337) 693-7948
1013 Main Street Franklin, LA 70538
Phone (337) 628-0272 Fax (337) 628-0290
133 East WaddilSL Mart(8VilleLA71351
Phone (318)253-9252 Fax (318) 253-8681
1426 Metro Dnve Atoxandria. LA 71301
Phone (318) 442-4421 Fax (318) 442-9833
MANAGEMENT LETTER WEBSITE
WWW KCSRCPAS COM
A Pioteistonal Aooountlng Coipontlon
The Honorable Ricky Fontenot, Mayor and Members of the Board of Aldermen
Town of Mamou, Louisiana
We have completed our audit of the basic financial statements of the Town of Mamou, Louisiana for the year ended December 31, 2012, and submit the following recommendation for your consideration
A continuing significant gas loss occurred in the Gas Utility Department. Despite efforts to locate and repair gas leaks, this loss has not significantly decreased firom pnor years The Town should investigate possible reasons for the excess gas loss and continue efforts to reduce the loss.
In conclusion, we express our appreciation to you and your staff, particularly to your office staff, for the courtesies and assistance rendered to us during the performance of our audit. Should you have any questions or need assistance in implementing our recommendations, please feel fi-ee to contact us.
Kolder, Champagne, Slaven & Company, LLC Certified Public Accountants
Lafayette, Louisiana June 21, 2013
Member of AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTA^^'S
Member of SOCIETY OF LOUISIANA
CERTIFIED PUBLIC ACCOUNTAMTS
TABLE OF CONTENTS
Page
Independent Auditors' Report 1-4
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS) Statement of net position 7 Statement of activities 8
FUND FINANCIAL STATEMENTS (FFS) Balance sheet - govemmental funds 11 Reconciliation of the govemmental funds balance sheet
to the statement of net position 12 Statement of revenues, expenditures, and changes in fiind balances-
governmental funds 13 Reconciliation of the statement of revenues, expenditures, and
changes in fund balances of govemmental funds to the statement of activities 14 Statement of net position - proprietary funds 15 Statement of revenues, expenses, and changes in fund net
position - proprietary funds 16 Statement of cash flows - proprietary funds 17-18
Notes to basic financial statements 19-41
REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedules
General Fund 43 Sales Tax Special Revenue Fund 44
OTHER SUPPLEMENTARY INFORMATION
OTHER FINANCIAL INFORMATION Statement of net position (with prior year comparable amounts) 47 Balance sheet - govemmental funds (with prior year comparable amounts) 48 Statement of revenues, expenditures, and changes in fund balances-
governmental funds (with prior year comparable amounts) 49 Major Govemmental Funds (with prior year comparable amounts) -
General Fund - budgetary comparison schedule - revenues 50 General Fund - budgetaiy comparison schedule- expenditures 51-53 Sales Tax Fund - budgetary comparison schedule 54
Schedule of number of utility customers (unaudited) 55 Schedule of insurance m force (unaudited) 56
(continued)
TABLE OF CONTENTS (Continued)
Page
Combined schedule of interest-bearing deposits - all funds 57 Comparative statement of net position - proprietary funds 58 Comparative statement of revenues, expenses, and changes in fiind net
position - proprietary funds 59 Departmental analysis of revenues and expenses - utility fund 60
COMPLIANCE, INTERNAL CONTROL AND OTHER GRANT INFORMATION
Independent Auditor's Report on Intemal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditmg Standards 62-63
Summary schedule of current and prior year audit findings and corrective action plan 64-65
C Burton Kolder CPA* Russell F Champagne CPA* Victor R Slaven. CPA* Gerald A. ThiDodeaux, Jr, CPA' Robert S Carter CPA* Arthur R Mucon. CPA* Penny Angelle Scruggins CPA Chnstirw C Ooucet, CPA
KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS
Wenda F Arcement CPA.CVA Allen J LaBry CPA Alben R Leger CPA.PFS CSA* Marshall W Guidry CPA Stephen R Moore Jr CPA,PFS CFP*ChFC' James R Roy CPA Robert J Metz, CPA Alan M Teylor, CPA Keily M Doucst, CPA Cheiyl L Bartley, CPA Mandy B Serf CPA Paul L Delcambre Jr CPA Knstin B Dauzat CPA Matthew E Margaglio. CPA JaneR Hebert CPA Bryan K. Joubert CPA Stephen J Anderson CPA W Jeffrey Lowry CPA
Retrred Conrad 0 Chapman CPA* 2006 TynesE Mixon Jr CPA2011 P Troy Courville CPA'2013
OFFICES
183 South Beadle Rd Lafayette, LA 70508 Phone (337) 232-4141 Fax (337) 232-6660
450 East Mam Street New Ibena LA 70560
Phone (337) 367-9204 Fax (337) 367-9208
113 Best Bridge St. 200 South Main Street Breaux Bndge LA 70517 Abbeville LA 70510 Phone (337) 332-4020 Phone (337) 893-7944 Fax (337) 332-2867 Fax (337) 893-7946
1234 David Dr Ste 203 Mcvgan City. LA 70360 Phone (985) 384-2020 Fax (985) 384-3020
408 West Cotton Street Ville Platte, LA 70586 Phone (337) 363-2792 Fax (337) 363-3049
1013 Mam Street FranMin LA 70538
Phone (337) 828-0272 Fax (337) 828-0290
133EastWaddilSt Maricsville LA 71351
Phone (318) 253-9252 Fax (318) 253-8681
332 West Sixth Avenue 1428 Metro Drrve Oberlin, LA 70655 Alexandna LA 71301 Phone (337) 63»4737 Phone (318) 442^4421 Fax (337) 639-4568 Fax (318) 442-9633
WEB SITE WWW KCSRCPAS COM
' A PrutMSloraJ Accotmtjng COfporBllon INDEPENDENT AUDITORS' REPORT
The Honorable Ricky Fontenot, Mayor and Members of the Board of Aldermen
Town of Mamou, Louisiana
Report on the Financial Statements
We have audited the accompanying financial statements of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Mamou, Louisiana, as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the basic financial statements of the Town's primary govemment as listed in the table of contents
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, this includes the design, implementation, and maintenance of intemal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards^ issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the nsks of matenal misstatement of the financial statements, whether due to fi-aud or error In making those nsk assessments, the auditor considers intemal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropnate in the
Member of AMERICAN INSTmjTE OF CERTIFIED PUBLIC ACCOUNTANTS
Member of SOCIETY OF LOUISIANA
CERTIFIED PUBLIC ACCOUNTANTS
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's intemal control Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well a evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions
Basis for Adverse Opinion on Aggregate Discretely Presented Component Units and Qualifled Opinion on Aggregate Remaining Fund Information
The financial statements referred to above do not include financial data for the Town's legally separate component units Accounting pnnciples generally accepted in the United States of America require financial data for those component units to be reported with the financial data of the Town's primary govemment unless the Town also issues financial statements for the financial reporting entity that include the financial data for its component units. The Town has not issued such reportmg entity financial statements The amount by which this departure from accounting principles generally accepted in the United States of America would affect the assets, liabilities, net position, revenues and expenses of the aggregate discretely presented component units is not reasonable determinable In addition, the amount by which this departure from accounting pnnciples generally accepted in the United States of Amenca would affect assets, liabilities, fund balances, revenues, and expenditures of the aggregate fund information is also not reasonably determinable
Adverse Opinion on Aggregate Discretely Presented Component Units
In our opinion, because of the significance of the matter descnbed in the "Basis for Adverse Opinion on Aggregate Discretely Presented Component Units and Qualified Opinion on Aggregate Remaining Fund Information" paragraph, the financial statements referred to above do not present fairly the financial position of the aggregate discretely presented component units of the Town of Mamou, Louisiana, as of December 31, 2012, or the changes in financial position thereof for the year then ended.
Qualified Opinion on Aggregate Remaining Fund Information
In our opinion, except for the matter descnbed in the "Basis for Adverse Opinion on Aggregate Discretely Presented Component Units and Qualified Opinion on Aggregate Remaining Fund Information" paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of the aggregate remaining fiind mfonnation of the Town of Mamou, Louisiana, as of December 31, 2012, and the changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America
Unmodified Opinions
In our opinion, the financial statements referred to above present fairly, in all matenal respects, the respective financial position of the govemmental activities, the business-type activities, and each major fiind of the Town of Mamou, Louisiana, as of December 31, 2012, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting pnnciples generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 43 - 44 be presented to supplement the basic financial statements Such information, although not a part of the basic financial statements, is required by the Govemmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropnate operational, economic, or histoncal context We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained dunng our audit of the basic financial statements We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
The Town of Mamou, Louisiana has omitted management's discussion and analysis that, although not a part of the basic financial statements, is required by the Govemmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context Our opinion on the basic financial statements is not affected by this omitted information
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Mamou, Louisiana's basic financial statements The other supplementary information on pages 47 through 60 is presented for purposes of additional analysis and is not a required part of the basic financial statements
The other supplementary information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such infomiation has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America In our opinion, the other supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole
The schedule of number of utility customers and the schedule of insurance in force have not been subjected to the auditing procedures applied m the audit of the basic financial statements and accordingly, we do not express an opinion or provide any assurance on them The pnor year comparative information included in the other supplementary information has been derived from the Town of Mamou, Louisiana's 2011 financial statements, which was subjected to the auditing procedures applied m the audit of the baste financial statement and, in our opinion, was fairly presented in all material respects in relation to the basic financial statements taken as a whole, except for the schedule of number of utility customers and the schedule of insurance in force which were not subjected to the auditing procedures applied in the audit of the basic financial statements and on which we expressed no opinion
Other Reporting Required by Government Auditing Standards
As described in Note 21 to the financial statements, the Town of Mamou, Louisiana adopted the provisions of GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, in 2012
In accordance with Govemment Auditing Standards, we have issued our report dated June 21, 2013, on our consideration of the Town of Mamou, Louisiana's intemal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters The purpose of that report is to describe the scope of our testing of intemal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on intemal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditmg Standards in considenng the Town of Mamou, Louisiana's intemal control over financial reporting and compliance
Kolder, Champagne, Slaven & Company, LLC Certified Public Accountants
Lafayette, Louisiana June 21, 2013
BASIC FINANCLVL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS)
TOWN OF MAMOU, LOUISIANA
Statement of Net Position December 31,2012
ASSETS Current assets
Cash and interest-bearing deposits Receivables, net Due from other govemmental units Inventory Prepaid items
Total current assets
Noncurrent assets Restricted assets.
Cash and interest-bearing deposits Capital assets, net
Total noncurrent assets
Total assets
LIABILITIES Current liabilities
Accounts and other payables Claims payable Advances from grantors Intemal balances
Total current liabilities
Noncurrent liabilities. Customers deposits payable Contingent liabilities
Total noncurrent liabilities
Total liabilities
NET POSITION Invested in capital assets, net of related debt Unrestricted
Total net assets
Govemmental Activities
$1,307,415 116,073
4,233 -
51,296
1,479,017
100,000 3,694,380
3,794,380
5,273,397
106,396 37,859
7,390 42,552
194,197
-25,000
25,000
219,197
3,694,380 1,359,820
$5,054,200
Business-Type Activities
$ 395,695 231,506
-
23,225 13,175
663,601
218,575 3,307,370
3,525,945
4,189,546
62,396 --
(42,552)
19,844
218,575 -
218,575
238,419
3,307,370 643,757
$3,951,127
Total
$1,703,110 347,579
4,233 23,225 64,471
2,142,618
318,575 7,001,750
7,320,325
9,462,943
168,792 37,859
7,390 -
214,041
218.575 25,000
243,575
457,616
7,001,750 2,003,577
$9,005,327
The accompanymg notes are an integral part of the basic financial statements
7 /
TOWN OF MAMOU, LOUISIANA
Statement of Activities For the Year Ended December 31. 2012
Activities Govemmental activities
General govemment Public safety -
Police Streets Culture and recreation Judicial
Total govemmental activities Business-type activities
Gas Water Sewer
Total business-type activities
Total
Expenses
$ 998,879
1,044,556 419,374 207,742
66,884
2,737,435
521.940 348,440 392,038
Fees Charg<
S
Program Revenues Operating
;, Fines, and Grants and ;s for Services Contributions
146.563 $ 22.957
480,687 18.961 5,000
23.325
650.575
801,401 532,076 468.519
46,918
Capital Grants and
Contributions
$ -
41,673
41.673
35,000
Net (Expense) Changes in
Govemmental Activities
$ (829,359)
(503,235) (414,374) (184,417)
(66,884)
(1.998,269)
Revenues and Net Assets Business-Type
Activities
$
.
314,461 183.636 76,481
Total
$ (829,359)
(503.235) (414,374) (184.417)
(66.884)
(1,998,269)
314,461 183,636 76,481
1,262.418
$3,999,853
1,801,996
$2,452,571 $ 46,918
35,000 574,578
General revenues Taxes-
Ad valorem taxes, levied for general purposes Ad valorem taxes, levied for streets and recreation Sales and use taxes, levied for general purposes Sales and use taxes, levied for capital improvements Sales and use taxes, levied for industry and tourism inducement Franchise taxes
Grants and contributions not restncted to specific programs -
State sources Interest and mvestment earnings Hospital lease revenue Hospital receivable revenue Nursing home lease revenue Miscellaneous
Transfers to component unit Transfers
Total general revenues and transfers
Change in net position
Net position - January 1,2012
Net position - December 31, 2012
68,655 112,015 450,493 183,533 33,370
150,940
8,135 3,939
318,750 468
244,550 138.425
(474,700) 1,320.330
2.558.903
560,634
4,493,566
1,889
574,578
$ 76,673 $(1,998,269) $ 574,578 $(1,423,691)
(1,320.330)
(1.318.441)
(743.863)
4.694,990
68,655 112,015 450,493 183.533
33.370 150.940
8.135 5,828
318,750 468
244,550 138.425 (474,700)
1,240,462
(183.229)
9.188,556
$ 5,054.200 $3,951.127 $ 9,005,327
The accompanying notes are an integral part of the basic financial statements
FUND FINANCIAL STATEMENTS (FFS)
FUND DESCRIPTIONS
General Fund
The General Fund is used to account for resources traditionally associated with govemments which are not required to be accounted for in another fund
Special Revenue Fund
Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes
Sales Tax Fund To account for the receipt and use of proceeds of the Town's two 1% sales and use taxes as described below.
The proceeds of the Town's 1986 1% sales tax are dedicated to and used for any lawful corporate purpose of the Town This tax was renewed by the voters of the Town in April 2011
The proceeds of the Town's 1991 1% sales tax are dedicated and divided as follows thirty-five percent (35%) for any lawful corporate purpsoe of the Town; ten percent (10%) for inducing and attracting commerce, industry and tourism in the Town, including the acquisition and improvement of land and buildings there for; and fifty-five percent (55%) for constructing, acquiring, improving and/or extending any work of capital improvement forthe Town
Enterprise Fund
Utility Fund -To account for the provision of gas, water, and sewerage services to residents of the Town. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection
10
TOWN OF MAMOU, LOUISIANA
Balance Sheet Govemmental Funds December 31,2012
ASSETS
Cash Interest-bearing deposits Receivables*
Taxes Accrued interest Other
Due from other funds Due from other govemmental units Prepaid expenses Restricted cash
Interest-bearing deposits Total assets
General
Sales Tax Special
Revenue Total
$149,080
485,649
115,896
18 159 -
4,233
40,728
100,000
$895,763
$ -666,690
-
-
-
97,881
-
-
_
$764,571
$ 149,080
1,152,339
115,896
18 159
97,881
4,233
40,728
100,000
$1,660,334
LIABILITIES AND FUND BALANCES
Liabilities Accounts and other payables Compensated absences payable Advances from grantors Due to other funds
Total liabilities
Fund balances' Nonspendable Restricted - sales tax dedications Unassigned
Total fund balances
Total liabilities and fund balances
$ 86,083
19,919
168,314
274,316
40,728
580,719
621,447
$895,763
$ 394
7,390
7,784
756,787
756,787
$764,571
$ 86,477
19,919
7,390
168,314
282,100
40,728
756,787
580,719
1,378,234
$1,660,334
The accompanying notes are an integral part of the basic financial statements
11
TOWN OF MAMOU, LOUISIANA
Reconciliation of the Govemmental Funds Balance Sheet to the Statement of Net Position
December 31,2012
Total fund balances for govemmental fiinds at December 31, 2012 $ 1,378,234
Total net position reported for govemmental activities in the statement of net position is different because
Capital assets used in govemmental activities are not financial resources and, therefore, are not reported in the funds Those assets consist of Construction in progress $ 19,625 Und 269,650 Buildings and improvements, net of $878,832 accumulated depreciation 2,254,924 Infrastructure, net of $ 1,012,544 accumulated depreciation 984,076 Equipment, furniture, and fixtures, net of $505,921 accumulated depreciation 70,854 Vehicles, net of $150,680 accumulated depreciation 95,251 3,694,380
Long-term liabilities at December 31, 2012 Contingent liability (25,000)
Net position of the group self-insurance internal service fund 6,586
Total net position of govemmental activities at December 31,2012 $5,054,200
The accompanying notes are an integral part of the basic financial statements
12
TOWN OF MAMOU, LOUISIANA
Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds
For the Year Ended December 31, 2012
Revenues* Taxes Licenses and permits Intergovemmental Fines and forfeits Miscellaneous
Total revenues
Expenditures Current -
General govemment Administrative
Public safety. Police
Highways and streets Culture and recreation Judicial
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses). Transfers in Transfers out Transfers in (out) - component unit
Total other financing sources (uses)
Net changes in f\ind balances
Fund balances, beginning
Fund balances, ending
General
$ 331,610
146,563
146,091
431,322
714,435
1,770,021
Sales Tax
Special
Revenue
$ 667,396
-
-
-
15,991
683,387
Total
$ 999,006
146,563
146,091
431,322
730,426
2,453,408
917,172 53,259 970,431
1,011,765
375,034
134,131
64,960
101,176
2,604,238
(834,217)
1,907,644
-
(474,700)
1,432,944
598,727
22,720
$ 621,447
-
-
-
-
112,352
165,611
517,776
.
(587,314) -
(587,314)
(69,538)
826,325
$ 756,787
1,011,765
375,034
134,131
64,960
213,528
2,769,849
(316,441)
1,907,644
(587,314)
(474,700)
845,630
529,189
849,045
$ 1,378,234
The accompanying notes are an integral part of the basic financial statements
13
TOWN OF MAMOU, LOUISIANA
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Govemmental Funds
to the Statement of Activities For the Year Ended December 31, 2012
Total net changes in fund balances at December 31,2012 per Statement of Revenues, Expenditures and Changes in Fund Balances $ 529,189
The change in net position reported for govemmental activities in the statement of activities is different because
Govemmental funds report capital outlays as expenditures However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense Capital outlay which is considered expenditures on the Statement of Revenues, Expenditures and Changes in Fund Balances $ 213,478 Depreciation expense for the year ended December 31,2012 (185,541) 27,937
Difference between proceeds from the sale of assets on the Statement of Revenues, Expenditures and Changes in Fund Balances and the Gain on Disposal of Assets on the Statement of Activities (969)
Net income of group self-insurance intemal service fund 4,477
Total changes in net position at December 31, 2012 per Statement of Activities $ 560,634
The accompanying notes are an integral part of the basic financial statements.
14
TOWN OF MAMOU, LOUISIANA
Statement of Net Position Proprietary Funds
December 31,2012
ASSETS Current assets
Cash Interest-bearing deposits Receivables -
Accounts Unbilled utility receivables Accmed interest receivable Other
Due from other fiinds Inventory - natural gas Prepaid items
Total current assets Noncurrent assets
Restncted assets -Interest-beanng deposits
Capital assets, net of accumulated depreciation Total noncurrent assets
Total assets
LIABILITIES Current liabilities
Accounts and other payables Compensated absences payable Claims payable
Total current liabilities
Business-type Activities Enterprise Fund
$ 1 395,694
158.098
73,192
8
208
42,552
23,225
13,175
706,153
218,575
3,307,370
3,525,945
4,232,098
58,409
3,987
62,396
Noncurrent liabilities Customers' deposits
Total liabilities
NET POSITION Invested m capital assets, net of related debt Unrestncted
Total net position
218,575
280,971
3,307,370 643,757
$3,951,127
Govemmental Activities Intemal Service Fund
$ 5,996
27,881
10,568
44,445
44,445
37,859 37,859
37,859
6,586
$ 6,586
The accompanying notes are an integral part of the basic financial statements
15
TOWN OF MAMOU, LOUISIANA
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
Year Ended December 31, 2012
Business-type Activities- Govemmental Activities
Operating revenues Charges for services Permits, reconnections and penalties Miscellaneous
Total operating revenues
Operating expenses-Gas department expenses Water department expenses Sewerage department expenses Depreciation expense Self insurance expenses
Total operating expenses
Operating income
Nonoperating revenues (expenses). Interest income
Income before contributions and transfers
Capital contributions
Income before transfers
Transfers out
Change in net assets
Net position, beginning
Net position, ending
Enterprise Fund
$1,724,748 63,729 13,519
1,801,996
505,073 272,914 252,001 232,430
1,262,418
539,578
1,889
541,467
35,000
576,467
(1,320,330)
(743,863)
4,694,990
$3,951,127
Intemal Service Fund
$361,940
361,940
357,463
357,463
4,477
4,477
4,477
4,477
2,109
$ 6,586
The accompanying notes are an integral part of this statement.
16
TOWN OF MAMOU, LOUISIANA
Statement of Cash Flows Propnetary Funds
For the Year Ended December 31,2012
Busmess-type Activities - Govemmental Activities -
Cash flows from operating activities Receipts from customers Payments to suppliers Payments to employees Other receipts
Net cash provided (used) by operating activities
Cash flows from noncapital financing activities Capital contnbutions Transfers to other funds
Net cash used by noncapital financing activities
Cash flows from capital and related financing activities Net increase in customer meter deposits Net acquisition of property, plant and equipment
Net cash used by capital and related financing activities
Cash flows from investing activities Net purchases of interest-beanng deposits with
maturity in excess of ninety days Interest eamed
Net cash provided by investing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of penod
Enterpnse Fund
$1,790,953 (845,537) (200.577)
13.536
758,375
35,000 (704,855)
(669,855)
7,175 (100,900)
(93,725)
Internal Service Fund
$ 362,657 (364.402)
(1,745J
-
-
(1,064) 1.948
884
(4,321)
387.094
$ 382,773
—
L
--.
(1,745)
7.741
5.996
(continued)
17
TOWN OF MAMOU, LOUISIANA
Statement of Cash Flows Proprietary Funds (Continued)
For the Year Ended December 31,2012
Busmess-type Activities - Govemmental Activities -Enterpnse Fund Intemal Service Fund
Reconciliation of operatmg income to net cash provided (used) by operatmg activities
Operating income Adjustments to reconcile operatmg mcome to net
cash provided (used) by operatmg activities Depreciation Changes in current assets and habihties
Increase accounts receivable Increase in provision for uncollectible accounts Decrease in unbilled utility receivables Decrease m other receivables Increase inventory (Increase) decrease in prepaid items Decrease in provision for accounts payable Decrease in provision for compensated absences payable Decrease in provision for claims payable
Net cash provided (used) by operating activities
Reconciliation of cash and cash equivalents per statement of cash flows to the balance sheet
Cash and cash equivalents, beginnmg of period -Cash - unrestricted Interest-beanng deposits - unrestricted Interest-bearing deposits - restricted
Less Interest'bearmg deposits with maturity in excess of 90 days
Total cash and cash equivalents
Cash and cash equivalents, end of period -Cash - unrestricted Interest-bearing deposits - unrestricted Interest-beanng deposits - resu-icted
Less Interest-bearing deposits with maturity in excess of 90 days
Total cash and cash equivalents
Net decrease
$ 539,578
232,430
(20,879) 11.171 12.184
17 (1.538)
(53) (10.277) (4,258)
$ 758,375
$ 1 406.126 211.400
(230,433) 387,094
395.694 218.575
(231.497) 382.773
$ 4,477
717
1,101
(8,040)
$ J 1 J 4 5 )
$ 7,741
7,741
5.996
5,996
(4,321) $ (1,745)
The accompanymg notes are an integral part of the basic financial statements
18
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements
(1) Summary of Significant Accounting Policies
The accompanying financial statements of the Town of Mamou (Town) have been prepared in conformity with generally accepted accounting pnnciples (GAAP) as applied to govemmental units GAAP includes all relevant Govemmental Accounting Standards Board (GASB) pronouncements The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note.
A Financial Reporting Entitv
The Town of Mamou was incorporated on January 4, 1911, under the provisions of the Lawrason Act The Town operates under the Mayor-Board of Aldermen form of govemment
As the municipal goveming authority, for reporting purposes, the Town of Mamou is considered a separate financial reporting entity. The financial reporting entity consists of (a) the primary govemment (municipality), (b) organizations for which the pnmary govemment is financially accountable, (c) other organizations for which the nature and significance of their relationship with the pnmary govemment are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete, and (d) organizations that are closely related to, or financially integrated with the pnmary govemment
Govemmental Accounting Standards Board (GASB) Statement No. 14 as amended by Statement No 39 established criteria for determining which component units should be considered part of the Town of Mamou for financial reporting purposes. The basic cntenon for including a potential component unit within the reporting entity is financial accountability The GASB has set forth cnteria to be considered in determining financial accountability. These criteria include*
1 Appointing a voting majority of an organization's goveming body, and
a The ability of the municipality to impose its will on that organization and/or
b The potential for the organization to provide specific financial benefits to or impose specific financial burdens on the municipality
2 Organizations for which the municipality does not appoint a voting majority but are fiscally dependent on the municipality
19
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
3 Organizations for which the reporting entity's financial statements would be misleading if data of the organization is not included because of the nature or significance of the relationship if all of the following conditions exist.
a The economic resources received or held by the organization are entirely or almost entirely for the direct benefit of the primary govemment, its component units, or its constituents
b. The primary govemment (or its component units) is entitled to, or has the ability to otherwise access, a majonty of the economic resources received or held by the separate organization.
c The economic resources received or held by an individual organization that the specific primary govemment (or its component units) is entitled to, or has the ability to otherwise access, are significant to that primary govemment
4 Organizations that are closely related to, or financially integrated with the primary govemment
The following component units are not presented in the accompanying financial statements*
Savoy Cancer Center, Inc
The Savoy Cancer Center, Inc. (a nonprofit organization) was determined to be a component unit but is not presented in the accompanying financial statements The organization's primary function is limited to fundraising activities to provide support for indigent cancer patients The Center is a nonprofit organization incorporated on June 29, 1998 The Center was formed for the purpose of operating and managing a facility for treating cancer patients and is exempt from income taxes under Section 501(c)(3) of the Intemal Revenue Code The direction, administration and management of the Center is governed by a Board of Directors orTmstees of not less than six (6) nor more than ten (10) members The members serve terms of one to three years
Complete financial statements for the component unit may be obtained at the entity's administrative office (Savoy Cancer Center, Inc, 803 Poinciana, Mamou, LA 70554)
20
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
Savoy Medical Management Group, Inc
Savoy Medical Management Group, Inc (a nonprofit organization) was determined to be a component unit but is not presented in the accompanying financial statements The organization is a nonprofit organization incorporated on November 11, 2009 The organization was formed for the purpose of providing medical and health related services to communities in and around Mamou, Parish of Evangeline, Louisiana, and to those persons or individuals seeking healthcare and is exempt from mcome taxes under Section 504(c)(3) of the Intemal Revenue Code. The sole member of this corporation shall be the Town of Mamou, Louisiana, which shall act through individuals duly elected and then serving on the Town of Mamou Council The management and affairs of this corporation shall be at all times under the direction of the Board of Tmstees which shall at all times consist of at least three (3) but no more than nine (9) members appointed by the sole Member's goveming body The Board of Trustees may include at least two (2) members of the sole Member's goveming body.
Complete financial statements for the component unit may be obtained at the entity's administrative office (Savoy Medical Management Group, Inc, 801 Poinciana, Mamou, LA 70554)
Savoy Medical Center & Savoy Care Center Nursing Home
The Savoy Medical Center and the Savoy Care Center Nursing Home were determined to be component units but are not presented in the accompanying financial statements The Town of Mamou owns the equipment and physical plant operated by Savoy Medical Center, which includes the Town of Mamou Caner Center Building Fund, and Savoy Care Center Nursing Home, Until December 31, 2009, the Town leased the premises, which included the land, buildings, fixtures, improvements and equipment for the hospital facility to Rapides Healthcare System, LLC d^/a Savoy Medical Center for $765,000 annually Effective January 1, 2010, Savoy Medical Management Group, Inc became the successor-in-interest to Rapides Healthcare System, LLC The annual lease payment was fixed at a sum of $765,000 due in monthly installments of $63,750 However, the monthly lease payments for the initial six months did not become due in full until July 2010 Beginning in July 2010, monthly lease payments were scheduled to resume No lease payments were received dunng the fiscal year ended December 31, 2010 Lease payments resumed in January of 2011, however, due to cash flow issues, only five lease payments were made during 2012.
Effective December 31, 2010, operational control of the cancer treatment facility owned by the Town of Mamou and reported in the Town of Mamou Cancer Center Building Fund was transferred to Savoy Medical Center The Town maintains insurance coverage on this facility
21
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
The Town also leases the premises, which includes the land, buildings, fixtures, improvements and equipment for the nursing home facility to MH3F Healthcare Management, LLC d/b/a Savoy Care Center Nursing Home for $244,530 The lessees agree to pay all taxes, charges, costs and expenses including maintenance, repairs and utilities of the facilities
Complete financial statements for the component unit may be obtained at the entity's administrative office (Savoy Medical Center, 801 Poinciana, Mamou, LA 70554)
These primary govemment financial statements of the Town of Mamou do not include the financial data of the component units described above. These component units' financial data is necessary for reporting in conformity with generally accepted accounting principles.
B Basis of Presentation
Govemment-Wide Financial Statements (GWFS)
The statement of net position and statement of activities display information about the reporting govemment as a whole They include all funds of the reporting entity, except fiduciary funds and component units that are fiduciary in nature The statements distinguish between govemmental and business-type activities. Govemmental activities generally are financed through taxes, intergovemmental revenues, and other non-exchange revenues Business-type activities are financed in whole or in part by fees charged to extemal 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 Town and for each function of the Town's govemmental activities Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function Program revenues include (a) fees, fines, and charges paid by the recipients of goods or services offered by the programs, and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program Revenues that are not classified as program revenues, including all taxes, are presented as general revenues
Fund Financial Statements
The accounts of the Town are organized and operated on the basis of funds. A fund IS an independent fiscal and accounting entity with a separate set of self-balancing accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements
22
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
The various funds of the Town are classified into two categories govemmental and proprietary The emphasis on fund financial statements is on major govemmental and enterpnse funds, each displayed in a separate column A fund is considered major if it is the primary operating fund of the Town or meets the following criteria
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual govemmental or enterpnse fiind are at least 10 percent of the corresponding total for all funds of that category or type, and
b Total assets, liabilities, revenues, or expenditures/expenses of the individual govemmental or enterprise fiind are at least 5 percent of the corresponding total for all govemmental and enterprise funds combined
The major funds of the Town are described below
Govemmental Funds -
The General Fund is the general operating fund of the Town. It is used to account for all financial resources except those required to be accounted for in another fund
The Sales Tax Special Revenue Fund is used to account for the proceeds of two separate one percent sales and use taxes that are legally restncted to expenditures for specific purposes
Additionally, the Town reports the following fund types
Proprietary Funds -
Proprietary funds are used to account for ongoing organizations and activities that are similar to those often found in the private sector. The measurement focus is based upon the determination of net income, financial position, and cash flows The following are the Town's propnetary fund types
Enterprise funds
Enterpnse funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the goveming body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or (b) where the goveming body has decided that periodic determination of revenues eamed, expenses mcuned, and/or net mcome is appropriate for capital maintenance, public policy, management control, accountability, or other purposes The Town applies all applicable principles under the Govemmental Accounting Standards Board (GASB) in accounting and reporting for Its enterpnse fund The Town's enterprise fiind is the Utility Fund
23
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
Intemal service funds
Intemal service funds are used to account for the financing of goods or services provided by one department or agency or other departments or agencies of the govemmental unit, or to other govemmental units, on a cost-reimbursement basis The Town's intemal service is the Group Health Self Insurance Fund
Measurement Focus/Basis of Accounting
Measurement focus is a term used to descnbe "which" transactions are recorded within the various financial statements Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied.
Measurement Focus
On the govemment-wide statement of net position and the statement of activities, both govemmental and business-type activities are presented using the economic resources measurement focus as defined in item b below
In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate
a All govemmental funds utilize a "current financial resources" measurement focus Only current financial assets and liabilities are generally included on their balance sheets Their operating statements present sources and uses of available spendable financial resources during a given period These funds use fiind 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 cost recovery), financial position, and cash flows All assets and liabilities (whether current or noncurrent) associated with their activities are reported Proprietary fund equity is classified as net position
Basis of Accounting
In the govemment-wide statement of net position and statement of activities, both govemmental and business-type activities are presented using the accmal basis of accounting. Under the accmal basis of accounting, revenues are recognized when eamed 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
24
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
Govemmental fund financial statements are reported using the current financial resources measurement focus and the modified accmal basis of accounUng Revenues are recognized as soon as they are both measurable and available Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period For this purpose, the govemment considers revenues to be available if they are collected within 60 days of the end of the current fiscal period Expenditures (including capital outlay) generally are recorded when a liability is incurred, as under accmal accounting However, debt service expenditures are recorded only when payment is due
The proprietary funds utilize the accmal basis of accounting Under the accmal basis of accounting, revenues are recognized when eamed and expenses are recorded when the liability is incurred or economic asset used
Program revenues
Program revenues included in the Statement of Activities are denved directly from the program itself or from parties outside the Town's taxpayers or citizenry, as a whole, program revenues reduce the cost of the function to be financed from the Town's general revenues
D Assets, Deferred Outflows. Liabilities, Deferred Inflows and Equity
Cash, interest-bearing deposits, and investments
For purposes of the statement of net position, cash and interest-bearing deposits include all demand accounts, savings accounts, and certificates of deposits of the Town
Under state law, the Town may invest in United States bonds, treasury notes, or certificates Investments are stated at amortized cost
For the purpose of the proprietary funds statement of cash flows, "cash and cash equivalents" include all demand and savings accounts, and certificates of deposit or short-term investments with an onginal maturity of three months or less
Receivables
In the govemment-wide statements, receivables consist of ail revenues eamed at year-end and not yet received Major receivable balances for the govemmental activities include ad valorem and sales and use taxes Business-type activities report customer's utility service receivables as their major receivables Uncollectible ad valorem taxes or utility service receivables are recognized as bad debts at the time information becomes available which would indicate the uncoUectibility of the particular receivable At December 31, 2012 and 2011, an allowance for ad valorem taxes was considered unnecessary due to immateriality. The allowance for customers' utility receivables was $203,508 and $192,337 at
25
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
December 31, 2012 and 2011, respectively Unbilled utility service receivables resulting from utility services rendered between the date of meter reading and billing and the end of the month, are recorded at year-end
Interfund receivables and payables
During the course of operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as "due to and from other funds." Short-term interfund loans are reported as "interfund receivables and payables."
Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds " Interfund receivables and payables between funds within govemmental activities are eliminated in the statement of net position
Inventory
Inventory of the Utility Fund consists of natural gas being held as storage on behalf of the Town by the Louisiana Municipal Gas Authonty and is valued at a pnce per MCF determined by the Louisiana Municipal Gas Authority Supplies and parts on hand are considered immaterial and have been accounted for using the purchase method
Prepaid Items
Payments made to vendors for services that will benefit periods beyond December 31,2012, are recorded as prepaid items.
Restncted Assets
Restncted assets include cash and interest-bearing deposits of the general fund and proprietary fund that are legally restricted as to their use The restncted assets in the utility fund are related to the utility meter deposits The restricted assets in the general fund are related to contingent liabilities ansing out of workman's compensation claims in existence at the time the Town purchased the hospital
Capital Assets
Capital assets, which include property, plant, equipment, and infrastmcture assets, are reported in the applicable govemmental or business-type activities columns in the govemment-wide or financial statements Capital assets are capitalized at historical cost or estimated cost if historical is not available Donated assets are recorded as capital assets at their estimated fair market value at the date of donation The Town maintains a threshold level of $1,000 or more for capitalizing capital assets
26
TOWN OF MAMOU, LOUISL\NA
Notes to Basic Financial Statements (Continued)
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized Prior to July 1, 2001, govemmental funds* infrastmcture assets were not capitalized These assets have been valued at estimated histoncal cost
Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation reflected in the statement of net assets Depreciation is provided over the assets' estimated useful lives using the straight-line method of depreciation. The range of estimated usefiil lives by type of asset is as follows
Buildings 40 years Equipment 5 years Utility system and improvements 20-40 years Infrastructure 20 years
In the fund financial statements, capital assets used in govemmental fund operations are accounted for as capital outlay expenditures of the govemmental fund upon acquisition Capital assets used in proprietary fund operations are accounted for the same as in the govemment-wide statements
Long-term debt
The accounting treatment of long-term debt depends on whether the assets are used in govemmental fiind operations or proprietary fund operations and whether they are reported in the govemment-wide or fund financial statements.
All long-term debt to be repaid from govemmental and business-type resources are reported as liabilities in the govemment-wide statements The long-term debt consists of utility meter deposits payable and contingent liabilities arising out of workman's compensation claims in existence at the time the Town purchased the hospital
Long-term debt for govemmental fiinds is not reported as liabilities in the fiind financial statements The debt proceeds 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 govemment-wide statements
Compensated Absences
Sick leave is eamed at the rate of one day for each month worked, with a limit of twelve days per year An employee may not carry over or accumulate more than forty-eight days of sick leave from one year to another Sick leave is not payable at termination of employment Vacation leave is eamed over an anniversary year basis at the rate of one day for each month worked, with a limit of twelve days per year An employee may not carry over or accumulate vacation leave from one employment anniversary date to another
27
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
For fund financial statements, vested or accumulated leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a current fiind liability of the govemmental fiind that will pay it In the govemment-wide statements, amounts of vested or accumulated leave that are not expected to be liquidated with expendable available financial resources are recorded as long-term debt
For fund financial statements, vested or accumulated leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a current fiind liability of the govemmental fund that will pay it In the govemment-wide statements, amounts of vested or accumulated leave that are not expected to be liquidated with expendable available financial resources are recorded as long-term debt.
Deferred Outflows of Resources and Deferred Inflows of Resources
In some instances, the GASB requires a govemment to delay recognition of decreases in net position as expenditures until a fiiture period In other instances govemments are required to delay recognition of increases in net position as revenues until a future penod. In these circumstances, deferred outflows of resources and deferred inflows of resources result from the delayed recognition of expenditures or revenues, respectively There were no deferred outflows of resources and deferred inflows of resources as of December 31,2012
Equity Classifications
In the govemment-wide statements, equity is classified as net position and eH in three cnmnonents displayed in three components
Invested in capital assets, net of related debt - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, constmction, or improvement of those assets
Restncted - Consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Constraints may be placed on the use either by (1) extemal groups such as creditors, grantors, contributors, or laws or regulations of other govemments, or (2) law through constitutional provisions or enabling legislation
Unrestncted - Net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in either of the other two categories of net position.
28
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
In the fund statements, govemmental flind equity is classified as fund balance Fund balances of the govemmental fiinds are classified as follows
a Nonspendalbe - amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact
b Restricted - amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are extemally imposed by creditors, grantors, contnbutors, or the laws or regulations of other govemments
c Committed - amounts that can be used only for specific purposes determined by a formal decision of the Town's Mayor and Board of Aldermen, which is the highest level of decision-making authonty for the Town Commitments may be established, modified, or rescinded only through ordinances or resolutions approved by board members
d Assigned - amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes
e Unassigned - all other spendable amounts.
When an expenditure is incurred for the purposes for which both restricted and unrestricted fund balance is available, the Town considers restncted funds to have been spent first When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Town considers amounts to have been spent first out of committed funds, then assigned fiinds, and finally unassigned funds, as needed, unless the Town has provided otherwise in its commitment or assignment actions
Proprietary fund equity is classified the same as in the govemment-wide statements
E. Revenues, Expenditures, and Expenses
Operating Revenues and Expenses
Operating revenues and expenses for propnetary funds are those that result from providing services and producing and delivering goods and/or services. It also includes all revenue and expenses not related to capital and related financing, noncapital financing, or investing activities.
29
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
Expenditures/Expenses
In the govemment-wide financial statements, expenses are classified by function for both govemmental and business-type activities.
In the fund financial statements, expenditures are classified as follows
Govemmental Funds - By Character Proprietary Fund - By Operating and Nonoperating
In the fund financial statements, govemmental fiinds report expenditures of financial resources Proprietary funds report expenses relating to use of economic resources.
Interfund Transfers
Permanent reallocations of resources between funds of the reporting entity are classified as interfund transfers For the purposes of the statement of activities, all interfund transfers between individual govemmental funds have been eliminated
Revenue Restrictions
The Town has vanous restrictions placed over certain revenue sources from state or local requirements The primary restricted revenue sources include*
Revenue Source Legal Restnctions of Use
Sales tax See Note 3 Gas, water and sewer revenue Utility operations
The Town uses unrestricted resources only when restricted resources are fully depleted
Budget and Budgetarv Accounting
The Town follows these procedures in establishing the budgetary data reflected in the financial statements
1 The Town Clerk prepares a proposed operating budget for the fiscal year and submits it to the Mayor and Board of Aldermen not later than fifteen days prior to the beginning of each fiscal year
2 A summary of the proposed budget is published and the public notified that the proposed budget is available for public inspection At the same time, a public hearing is called
30
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
3 A public heanng is held on the proposed budget at least ten days after publication of the call for the hearing.
4 After the holding of the public heanng and completion of all action necessary to finalize and implement the budget, the budget is adopted prior to the commencement of the fiscal year for which the budget is being adopted.
5 Budgetary amendments involving the transfer of fimds from one department, program or fimction to another or involving increases in expenditures resulting from revenues exceeding amounts estimated require the approval of the Board of Aldermen
6 All budgetary appropnations lapse at the end of each fiscal year
7 Budgets for all funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgeted amounts are as originally adopted or as amended by the Board of Aldermen. Such amendments were not material in relation to the onginal appropriations.
H Capitalization of Interest Expense
It IS the policy of the Town of Mamou to capitalize material amounts of interest resulting from borrowings in the course of the constmction of capital assets in the Propnetary Fund At December 31, 2012 there was no capitalized interest recorded on the books
I Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting penod Actual results could differ from those estimates
J Reclassifications
Certain previously reports amounts for the year ended December 31, 2011 have been reclassified to conform to the December 31, 2012 classifications
31
TOWN OF MAMOU, LOUISL\NA
Notes to Basic Financial Statements (Continued)
(2) Ad Valorem Taxes
Ad valorem taxes attach as an enforceable lien on property as of January 1 of each year Taxes are levied by the Town in September or October and are actually billed to taxpayers in December. Billed taxes become delinquent on January I of the following year. The Town bills and collects its own property taxes Property tax revenues are recognized when levied to the extent that they result in current receivables
For the year ended December 31, 2012, taxes of 19 75 mills were levied on property with assessed valuations totaling $8,845,050 and were dedicated as follows*
General corporate purposes 7,30 mills Streets and recreation maintenance 12,45 mills
Total 19 75 mills
Total taxes levied were $174,670 Taxes receivable at December 31, 2012 were $80,057
(3) Sales and Use Tax
A. Proceeds of the 1% sales and use tax levied by the Town of Mamou (2012 collections $333,698) are dedicated for any lawful corporate purposes of the Town
B, Proceeds of the 1% sales and use tax levied by the Town of Mamou in 1991 (2012 collections $333,698) are dedicated to the following purposes
Thirty-five percent (35%) for any lav^l corporate purposes of the Town, ten percent (10%) for inducing and attracting commerce, industry and tourism in the Town, including the acquisition and improvement of land and buildings there for, and fifty-five percent (55%) for constmcting, acquinng, improving and /or extending any work of capital improvement for the Town
(4) Cash, Interest-Bearing Deposits
Under state law, the Town may deposit funds within a fiscal agent bank organized under the laws of the State of Louisiana, the laws of any other state in the Union, or the laws of the United States, The Town may invest in certificates and time deposits of the state banks organized under Louisiana law and national banks having pnncipal offices in Louisiana, At December 31, 2012, the Town had cash and interest-bearing deposits (book balances) totaling $2,021,685 as follows*
Demand deposits $ 88,497 Money market accounts 1,601,691 Time deposits 331,497
Total $ 2,021,685
32
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
Custodial credit nsk for deposits is the risk that in the event of the failure of a depository financial institution, the Town's deposits may not be recovered or will not be able to recover the collateral secunties that are in the possession of an outside party These deposits are stated at cost, which approximates market Under state law, these deposits, (or the resulting bank balances) must be secured by federal deposit insurance or similar federal security or the pledge of securities owned by the fiscal agent bank The market value of the pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agent bank These secunties are held in the name of the pledging fiscal agent bank by a holding or custodial bank that is mutually acceptable to both parties The following is a summao' of deposit balances (bank balances) at December 31, 2012, and the related federal insurance and pledged securities*
Bank balances
Insured
Uninsured and collateral held by pledging bank not in Town's name
Total
$ 2,086,430
$ 861,548 1,224,882
$ 2,086,430
(5) Receivables
Receivables at December 31,2012 of $347,579 consist of the following.
Accounts Unbilled utility Allowance for uncollectible accounts Ad valorem Franchise tax Interest Other
Totals
Govemmental Activities $ -
-
-
80,057 35,839
18 159
$ 116,073
Business type Activities $361,606
73,192 (203,508)
-
-
8 208
$231,506
Total $361,606
73,192 (203,508)
80,057 35,S39
26 367
$ 347,579
(6) Due from Other Govemmental Units
Amounts due from other govemmental units of $4,233 at December 31, 2012 consisted of the following
General Fund* State of Louisiana - beer tax revenues receivable Evangeline Pansh Police Jury - state prisioner housing reimbursement
$ 1,965 2,268
$ 4,233
33
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
(7) Restncted Assets
A Restncted assets in the General Fund pertain to prior year hospital revenue claims and consisted of the following at December 31, 2012
Worker's compensation claims deposits $ 100,000
B Restricted assets in the Enterpnse Utility Fund consisted of the following at December 31, 2011.
Customers'deposits $ 218,575
(8) Capital Assets
Capital asset activity for the year ended December 31,2012 was as follows:
Govemmental activities Capital assets not being depreciated
Land Ptaza mural Constmction in progress
Other capital assets Buildmgs and improvements Infrastructure
Equipment, fiimiture and fixtures
Vehicles
Totals
Less accumulated depreciation Buildings and improvements Infrastructure
Equipment, furniture and fixtures
Vehicles
Total accumulated depreciation
Govemmental activities. capital assets, net
Balance
01/01/12
$ 269,650
13,503 -
3,068,283
1,906,426
571,695 212,324
6,041,881
793.633 963,756 482.220 134.860
2.374,469
$ 3,667,412
Additions
$ -
19,625
51,970 90.194
5.079 46.610
213,478
85.199 48,788 23.700 27.854
185,541
$ 27.937
Deletions
$ --
---
13,002
13,002
---
12.033
12,033
$ 969
Balance
12/31/12
$ 269,650
13,503 19,625
3.120,253 1.996,620
576.774
245,932
6,242,357
878.832 1,012.544
505.920 150,681
2,547,977
$ 3,694,380
34
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
Balance 01/01/12
$ 63,910 -
455,037 2,409,272 3,944,134 1,266,773
8,139,126
452.775 1.777.130 1,894,288
576,033
4,700.226
$ 3,438.900
Additions
$ 15,250
-
39,450 -
46.200
100,900
2.262 73,654
117,385 39.129
232,430
$ (131,530)
Deleuons
$ -
. --
27,067
27,067
_
--
27.067
27.067
$
Balance 12/31/12
$ 63,910 15,250
455,037 2,448.722 3,944.134 1,285.906
8,212,959
455,037 1.850,784 2.011,673
588,095
4.905,589
$ 3.307,370
Business-type activities Capital assets not being depreciated
Land * sewer system Construction m progress
Other capital assets Gas system Water system Sewer system Machinery and equipment
Totals Less accumulated depreciation
Gas system Water system Sewer system Machinery and equipment
Total accumulated depreciation
Busmess-type activities, capital assets, net
Depreciation expense was charged to govemmental activities as follows
General govemment Police Highways and streets Culture and recreation Judicial
Total depreciation expense
Depreciation expense was charged to business-type activities as follows.
Gas Water Sewer
Total depreciation expense
$ 30,458 34,671 44,743 73.611 2,058
$ 185,541
$ 16,867 75,526
140,037
$ 232,430
35
TOWN OF MAMOU, LOUISL\NA
Notes to Basic Financial Statements (Continued)
(9) Accounts and Other Pavables
The accounts and other payables consisted of the following at December 31, 2012*
Govemmental Activities
$ 71,600 14,877 19,919
$ 106,396
Business-type Activities
$ 55,600 2,809 3,987
$ 62,396
Total
$ 127,200 17,686 23,906
$ 168,792
Accounts payable Salaries payable Compensated absences payable
Totals
(10) Long-Term Debt
Revenue bonds - In 1999, the Town issued $5,000,000 of revenue bonds for the constmction of the Savoy Cancer Center facility. On January 19, 2006, the Town issued $3,289,000 of revenue bonds, Series 2006, to reftind $3,170,000 of revenue bonds. Series 1999 These bonds are reported on the financial statements of Savoy Medical Management Group, Inc , a component unit of the Town (see Note 1) At December 31,2012 there were $720,000 of bonds outstanding.
(11) Employee Retirement
A Social Security System
Employees of the Town of Mamou who are not eligible to participate in any other retirement system are members of the Social Security System The Town and Its employees contribute a percentage of each employee's salary to the System (7.65 percent contributed by the Town, 5.65 percent contnbuted by the employee) The Town's contributions during the years ending December 31, 2012 and 2011 amounted to $85,064 and $88,841, respectively.
B Municipal Police Employees Retirement Svstem of Louisiana (System)
Plan Description - All full-time police department employees engaged in law enforcement are eligible to participate in the System Employees who retire at or after age 50 with at least 20 years of creditable service or at or after age 55 with at least 12 years of creditable service are entitled to a retirement benefit, payable monthly for life, equal to 3 1/3% of their final-average salary for each year of creditable service Final average salary is the employee's average salary over the 36 consecutive or joined months that produce the highest average. Employees who terminate with at least the amount of creditable service stated above, and do not withdraw their employee contributions, may retire at the ages specified above and receive the benefit accmed to their date of termination The System also provides death and disability benefits Benefits are established by state statute
36
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
The System issues an annual publicly available financial report that includes financial statements and required supplementary information for the System That report may be obtained by writing to the Municipal Police Employees Retirement System of Louisiana, (225)929-7411.
Funding Policy - Plan members are required by state statute to contribute 10 0% of their annual covered salary and the Town is required to contribute at an actuarially determined rate The current rate is 31% of annual covered payroll. The contribution requirements of plan members and the Town are established and may be amended by state statute As provided by R S 11 103, the employer contributions are determined by actuarial valuation and are subject to change each year based on the results of the valuation for the prior fiscal year The Town's contnbutions to the System for the years ending December 31, 2012 and 2011 were $8,613 and $5,346, respectively, equal to the required contributions for each year
(12) Litigation and Claims
At December 31, 2012, the Town is involved in several lawsuits claiming damages. In the opinion of the Town's legal counsel, the only exposure to the Town would be any costs in defense of the lawsuits with no liability to the Town in excess of insurance coverage The Town also has worker's compensation claims that are unlikely to be settled due to the individuals having permanent disabilities and are currently receiving medical care The only exposure to the Town would be administrative fees with no liability in excess of insurance coverage See Note 14.
(13) Risk Management
A. Commercial Insurance Coverage
The Town is exposed to risks of loss in the areas of health care, general and auto liability, property hazards and workers* compensation All of these risks are handled by purchasing commercial insurance coverage There have been no significant reductions in the insurance coverage during the year.
B Group Self-Insurance
Effective July 1, 1998, the Town established a self-insurance health plan to account for and finance its uninsured risk of loss for commercial group health insurance The plan is administered by Southern Benefit Services, and the plan year ends on June 30 of each year Under this plan, Lloyds of London agreed to reimburse the Town for specific incurred claims related to any one covered employee or dependent which exceeds the retention by the Town, which is $30,000 For the plan year ending June 30, 2012, Lloyds of London will reimburse the Town for aggregate incurred claims during the period of insurance less any amounts paid with respect to the specific incurred claims No claims will be reimbursed until all claims in excess of the specific attachment point of $355,596 exceed a comdor of the greater of the product of the enrollment times the factors of $45 05 per employee or the
37
TOWN OF MAMOU, LOUISL\NA
Notes to Basic Financial Statements (Continued)
annual comdor of $20,000 Monthly payments are calculated based on the number of employees with single coverage multiplied by a funding factor of $646 and the number of employees with family coverage multiplied by a funding factor of $1,604. The Town currently funds the plan based upon actual claims incurred instead of the funding factors discussed above
The General and Utility Funds of the Town participate m the program and make payments to the Self-Insurance Fund based upon amounts needed to pay pnor and current year claims The claims liability of $37,859 reported in the fiind at December 31, 2012 is based on the loss that is probable at the date of the financial statements and the amount of the loss that can be reasonably estimated. The Town currently does not discount its claims liabilities
Reconciliation of Claims Liabilities
Claims payable, January 1, 2012 $ 45,899
Insurance claims incurred for year ended December 31,2012 206,390 Payments made for the year ended December 31,2012 (214,430)
Claims payable, December 31, 2012 $ 37,859
Claims payable of $37,859 at December 31,2012 was determined as follows:
A Claims incurred prior to December 31,2012 and paid in January 1, 2013 through March 31, 2013 $ 34,545
B Provision for claims incurred but not reported 3,314
Total claims payable $ 37,859
The provision for claims incurred but not reported of $3,314 was calculated utilizing historical information adjusted for current trends
(14) Contingent Liabilities
At December 31, 2012, the Town had contingent liabilities in the amount of $25,000 consisting of workers* compensation claims which are the result of the prior operations of the hospital facility owned by the Town The Town has certificates of deposit totaling $100,000 held as secunty for these claims
38
TOWN OF MAMOU, LOUISIANA
Notes to Basic Financial Statements (Continued)
(15) Enterpnse Fund Contracts
The Town of Mamou, under contract dated January 1, 1997, is required to purchase its natural gas from the Louisiana Municipal Gas Authority. The contract automatically renews annually unless notice is given in writing six months in advance The Town purchased natural gas dunng the year ended December 31, 2012 in the amount of $255,797 of which $34,995 was owed for purchases for the month of December 2012
(16) Segment Information for the Enterprise Fund
The Town of Mamou maintains one enterprise fimd with three departments, which provide gas, water, and sewerage services Segment information for the year ended December 31, 2012, was as follows
Operating revenues
Operating expenses Depreciation Other
Total operating expenses
Operating income
Gas Department
$801,401
16,867 505,073
521,940
$279,461
Water Department
$ 532,076
75,526 272,914
348,440
$183,636
Sewer Department
$468,519
140,037 252,001
392,038
$ 76,481
Total Enterprise
Fund
$1,801,996
232,430 1,029,988
1,262,418
$ 539,578
(17) Compensation of Town Officials
A detail of compensation paid to the Mayor and Board of Aldermen for the year ended December 31,2012 follows
Ricky Fontenot, Mayor
Aldermen Leisa Deshotel Freddie Matthew Scott Christ Charles Reed Robin Young
Total
$ 24,000
9,000
9,000
9,000
9,000
9,000
$ 69,000
39
TOWN OF MAMOU, LOUISL\NA
Notes to Basic Financial Statements (Continued)
(18) Interfiind Receivables/Payables
A. A summary of interfund receivables and payables at December 31, 2012 follows
Interfund Interfund Receivables Payables
Major govemmental funds General Fund Sales Tax Fund
Proprietary funds Enterprise Fund
Group Health Self-Insurance Intemal Service Fund
Total
The receivable in the Group Health Self-Insurance Fund is for amounts owed from various other funds for their share of health insurance premiums. The amounts due from the General Fund to various other funds are for short-term loans.
B Transfers consisted of the following at December 31,2012
Transfers In
$ -
97,881
42,552
27,881
$ 168,314
$ 168,314 -
-
.
$ 168,314
Transfers Out
$ 587,314
587,314
1,320,330
$1,907,644
Major govemmental fiinds General Fund $ 1,907,644 Sales Tax Special Revenue Fund -
Total govemmental funds 1,907,644
Proprietary funds Enterprise Fund -
Total $1,907,644
Transfers are used to (a) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and to (b) use unrestncted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations
(19) Operating Lease Revenues
The Town has negotiated the lease of Savoy Medical Center and Savoy Care Center Nursing Home. Effective January 1. 2010, the Town agreed to lease Savoy Medical Center to Savoy Medical Management Group, Inc for an initial pnmary term of 5 years beginning January 1, 2010 with options for four additional terms of five years each In the lease agreement addendum the Town
40
TOWN OF MAMOU, LOUISL\NA
Notes to Basic Financial Statements (Continued)
agreed to defer the monthly lease payments of $63,750 for a period of six months beginning January I, 2010 to help the new operators (Savoy Medical Management Group, Inc) build working capital. The Town received all lease payments in 2011 and five lease payments in 2012
Under the Savoy Care Center Nursing Home agreement, the Town will receive $18,525 per month thm March 2010 and $20,378 beginning in Apnl 2010 on a month-to-month basis commencing on Febmary 1, 2005 Beginning in Apnl 2013. the Town will receive $36,200 per month through March 2018
(20) Economic Dependencv
The Town of Mamou owns a hospital facility and nursing home within the Town The hospital IS leased to Savoy Medical Management Group, Inc operating as Savoy Medical Center for $765,000 per year (See Note 1 A 4) The nursing home is leased to MH3F Healthcare Management, LLC operating as Savoy Care Center Nursing Home for $244,530 per year These leases provide a significant portion of the Town's total revenues If the Town were to cease receiving these lease revenues, the Town's ability to continue to provide services at present levels would be threatened
(21) New Accounting Pronouncements
Dunng the fiscal year ended December 31, 2012, the Town of Mamou, Louisiana adopted GASB 63, "Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position," which provides guidance for reporting deferred outflows of resources, deferred inflows of resources, and net position in a statement of financial position and related disclosures The statement of net assets is renamed the statement of net position and includes the following elements assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position
In Apnl 2012, the Govemmental Accounting Standards Board (GASB) approved Statement No 65. "Items Previously Reported as Assets and Liabilities" This statement clarifies the appropnate reporting of deferred outflows of resources and deferred inflows of resources to ensure consistency in financial reporting Also in Apnl 2012, the Govemmental Accounting Standards Board (GASB) approved Statement No 66, "Technical Corrections -- 2012'*. This statement enhances the usefulness of financial reports by resolving conflicting accounting and financial reporting guidance that could dimmish the consistency of financial reporting The provisions of GASB Nos. 65 and 66 must be implemented by the Town of Mamou, Louisiana for the year ending December 31, 2013 The effect of implementation on the Town of Mamou, Louisiana's financial statements has not yet been determined
(22) Subsequent Event Review
The Town has evaluated subsequent events through June 21, 2013, the date which the financial statements were available to be issued.
41
REQUIRED SUPPLEMENTARY INFORMATION
42
TOWN OF MAMOU, LOUISIANA General Fund
Budgetary Comparison Schedule For the Year Ended December 31. 2012
Revenues Taxes Licenses and permits Intergovemmental Fines and forfeits Miscellaneous
Total revenues
Expenditures. Current -
General govemment Administrative
Public safety Police
Highways and streets Culture and recreation Judicial
Capital outlay
Total expenditures
Deficiency of revenues over expenditures
Other financing sources (uses) Transfers from -
Utility Fund Sales Tax Fund
Transfer to component unit
Total other financing sources (uses)
Excess of revenues and other sources over expenditures and other uses
Fund balance, beginning
Fund balance, ending
Budget Onginal
$ 355,000 $ 145,000 88,000
420,000 1,035,000
2,043,000
Final
355.000 145.000 146.000 450.000 733.410
1,829,410
Actual
$ 331,610 146,563 146,091 431,322 714,435
1,770,021
Variance with Final Budget
Positive (Negative)
$ (23,390) 1,563
91 (18.678) (18.975)
(59,389)
745,000 987,851 917,172 70,679
1,030,000 471,000 179,000 108.000 15.000
2,548,000
(505,000)
173,000 802,000
(445,000)
530,000
25,000
22,720
$ 47.720
1,035,000 458,000 151,800 78,400 51,603
2.762,654
(933,244)
1.219.555 497,490
(445,000)
1,272,045
338,801
22,720
$ 361,521
1.011.765 375.034 134.131 64,960
101,176
2,604,238
(834,217)
1,320,330 587,314
(474,700)
1,432.944
598,727
22,720
$ 621,447
23.235 82,966 17,669 13,440
(49,573)
158,416
99.027
100,775 89.824
(29.700)
160,899
259,926
_
$ 259,926
43
TOWN OF MAMOU, LOUISIANA Sales Tax Special Revenue Fund
Budgetary Comparison Schedule For the Year Ended December 31,2012
Revenues Taxes Miscellaneous -
Interest Other
Total revenues
Expenditures Current -
General govemment Capital outlay
Total expenditures
Budget Onginal
$ 636,480
2,000
638,480
Final
$670,140
2,000 11.000
683,140
Actual
$667,396
1.866 14,125
683,387
Vanance with Final Budget
Positive (Negative)
$ (2,744)
(134) 3,125
247
57,480 238,000
44,140 237,000
295,480 281,140
53.259 112,352 165,611
(9.119) 124,648 115,529
Excess of revenues over expenditures 343,000 402,000 517,776 115,776
Other financing uses Transfers out (802,000) (597,490) (587.314) 10.176
Deficiency of revenues over expenditures and other uses
Fund balances, beginning
Fund balances, ending
(459.000) (195,490) (69,538) 125,952
826,325 826.325 826,325
$ 367,325 $630,835 $ 756,787 $ 125,952
44
OTHER SUPPLEMENTARY INFORMATION
45
OTHER FEVANCUL INFORMATION
46
TOWN OF MAMOU. LOUISIANA
Statement of Net Position December 31, 2012
With Comparative Totals for December 31. 2011
2012
ASSETS Current assets.
Cash and interest-bearing deposits Receivables, net Due from other govemmental units Inventory Prepaid items
Total current assets
Noncurrent assets. Restncted assets -
Cash and interest-bearing deposits Capital assets, net
Total noncurrent assets
Total assets
LIABILITIES Current liabilities
Accounts and other payables Claims payable Advances from grantors Intemal balances
Total current liabilities
Noncurrent liabilities. Customers deposits payable Contingent liabilities
Total noncurrent liabilities
Total liabilities
NET POSITION Invested in capital assets, net of related debt Unrestricted
Total net position
Govemmental Activities
$1,307,415 116.073
4,233 -
51,296 1,479.017
100,000 3.694,380 3.794,380
5.273.397
106.396 37,859 7,390
42,552
194,197
-25,000 25,000
219.197
3,694,380 1,359,820
$5,054,200
Business-Type Activities
$ 395,695 231,506
-23,225 13,175
663.601
218,575 3,307,370 3,525,945
4,189.546
62,396 --
(42.552)
19,844
218,575 -
218,575
238.419
3,307,370 643.757
$3,951,127
Total
$1,703,110 347.579
4.233 23.225 64.471
2.142,618
318,575 7,001,750
7,320,325
9,462.943
168,792 37,859 7,390 -
214,041
218,575 25,000
243,575
457.616
7,001.750 2.003.577
$9,005,327
2011 Totals
$1,752,864 400.349
1.864 22.110 64.511
2,241,698
311,400 7,106,312 7,417,712
9,659,410
188.555 45.899
--
234,454
211,400 25,000
236,400
470,854
7,106.312 2.082,244
$9,188,556
47
TOWN OF MAMOU, LOUISIANA
Balance Sheet Govemmental Funds December 31, 2012
With Comparative Amounts as of December 31, 2011
2012
ASSEIS
Cash Interest-bearing deposits Receivables
Taxes Accmed interest Other
Due from other funds Due from other govemmental units Prepaid expenses Restricted cash*
Interest-bearing deposits Inventory
Total assets
General
$ 149,080 485.649
115,896 18
159 -
4,233 40.728
100.000 -
$ 895.763
Sales Tax Special
Revenue
$ -666.690
---
97,881 -
-
--
$764,571
Total
$ 149.080 1.152.339
115.896 18
159 97.881 4.233
40.728
100.000 -
$1,660,334
2011
$ 375,804 963,192
101,567 32
63,975 130,201
1.864 39.720
100.000 423
$1,776,778
LIABILITIES AND FUND BALANCES
Liabilities Accounts and other payables Compensated absences payable Advances from grantors Due to other funds
Total liabilities
Fund balances -Nonspendable Restricted - sales tax dedications Unassigned (deficit)
Total fiind balances
Total liabilities and fund balances
$
1
86.083 19,919
-
168,314
274,316
40.728 -
580,719
621,447
895,763
$ 394 -
7.390 -
7.784
_
756.787 -
756.787
$764,571
$ 86,477 19,919 7,390
168,314
282,100
40.728 756.787 580.719
1,378,234
$1,660,334
$ 89.457 22,167
-
816.109
927.733
40,143 826,325 (17,423)
849,045
$1,776,778
48
TOWN OF MAMOU. LOUISL\NA
Statement of Revenues, Expenditures, and Changes in Fund Balances-Govemmental Funds
For the Year Ended December 31,2012 With Comparative Actual Amounts for the Year Ended December 31, 2011
2012
Revenues: Taxes Licenses and permits Intergovemmental Fines and forfeits Miscellaneous
Total revenues
Expenditures Current -
General govemment Administrative
Public safety Police
Highways and streets Culture and recreation Judicial
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses) Transfers m Transfers out Transfers in (out) - component unit
Total other financing sources (uses)
Net changes in fund balances
Fund balances, beginning
Fund balances, ending
General
$ 331,610
146,563
146,091
431.322
714,435
1.770.021
Sales Tax
Special
Revenue
$ 667.396
-
-
-
15.991
683,387
Total
$ 999,006
146,563
146,091
431,322
730,426
2.453,408
2011
$1,005,247
145,922
103,470
408,341
1,144,324
2.807.304
917,172 53,259 970,431 815,094
1,011.765
375,034
134.131
64.960
101.176
2,604,238
(834,217)
1.907.644
(474.700)
1.432.944
598,727
22,720
$ 621,447
112,352
165,611
517,776
(587,314)
(587,314)
(69,538)
826,325
$ 756.787
1,011,765
375.034
134,131
64,960
213,528
2,769.849
(316,441)
1,907,644
(587.314)
(474,700)
845,630
529.189
849.045
$1,378,234
1,066,046
399,318
149,317
90.012
117,970
2,637,757
169,547
663.415
(267.718)
(1.400)
394,297
563,844
285,201
$ 849.045
49
TOWN OF MAMOU, LOUISIANA General Fund
Budgetary Comparison Schedule - Revenues For the Year Ended December 31, 2012
With Comparative Actual Amounts for the Year Ended December 31. 2011
2012
Budget
Original Final Actual
Variance with Fmal Budget
Positive 2011 (Negative) Actual
Taxes Ad valorem Franchise -
Electric Telephone Cable TV
Total taxes
Licenses and permits Occupational licenses Permits
Total licenses and permits
Intergovemmental Federal grants -
USDA Dept of Justice ARRA
State of Louisiana -Beer taxes Highway maintenance DARE State grants
Housing of state prisioners Housing Authority
Total intergovemmental
Fines and forfeits
Fines and court costs
Miscellaneous Interest Hospital lease revenue Hospital receivable revenue Nursing home lease revenue Hospital workers compensation recoveries Recreation complex Other sources
Total miscellaneous
Total revenues
$ 190,000
128.000 16.000 21,000
355.000
140.000 5,000
145.000
45.000 5.000
7.000 5.000
20,000 --
6.000 88.000
420,000
2.000 765,000
-244,000
-9,000
15,000
1.035,000
$2,043,000
$ 190,000
128,000 16.000 21,000
355,000
140,000 5,000
145.000
39,500 4,500
7.000 5,000
20,000 17,000 47,000 6,000
146,000
450.000
2,000 382.522
-244.530
-10.000 94,358
733,410
$1,829,410
$ 180.670
114,792 15.864 20.284
331,610
142.773 3.790
146.563
37.260 4,413
8,135 5,000
18.961 16.957 49.365 6,000
146,091
431,322
2,073 318,750
468 244.550
61.680 9.200
77,714 714,435
$1,770,021
$ (9.330)
(13,208) (136) (716)
(23,390)
2,773 (1,210)
1,563
(2.240) (87)
1,135 -
(1.039) (43)
2,365 -
91
(18.678)
73 (63,772)
468 20
61,680 (800)
(16,644)
(18,975)
$ (59.389)
$ 193.800
127,264 15,995 21.391
358,450
145,303 619
145,922
--
7,686 5,000
20,028 20,000
-6.000
58,714
408,341
2,254 765,000
490 244,530
32.450 10.290 24,001
1,079,015
$2,050,442
50
TOWN OF MAMOU, LOUISIANA General Fund
Budgetary Comparison Schedule - Expenditures For the Year Ended December 31,2012
With Comparative Actual Amounts for the Year Ended December 31.2011
2012
Current General govemment -
Administrative Mayor and council salanes Other salaries and wages Group insurance Insurance Payroll taxes Materials and supplies Advertisements and recordings Legal fees Accounting and auditing Professional fees Miscellaneous Utilities and telephone Repairs and maintenance Training Hospital workers' comp claims
Total administrative
Public safety -Police:
Salaries Payroll taxes Retirement contribution Group insurance Utilities and telephone Insurance Auto Gas and repairs Professional fees Court and lab fees Miscellaneous Supplies Training
Total police department
Budget Original
$ 69,000 213,000 150,000 50,000 25.000 28,000
5,000 20,000 49.000 58.000 15.000 17,000 13,000 3,000
30.000
745,000
447,000 40,000
5,000 200.000
36,000 118,000 68,000 15,000
1,000 40,000 18,000 42,000 -
1,030,000
Final
$ 69,000 196,000 90,000 50,000 25,000 26,000
4,000 176,000 47,000
173,000 10,000 15,000 14.000 4,000
88.851
987,851
480.500 43.000
8.500 140.000 36.000
111,000 71.000 20,000
1,000 50,000 33,000 39,000
2,000
1.035,000
Actual
$ 69,000 189,923 69.151 44,766 22.354 28,072
7,802 169,526
13,030 171,838 24,014 14,398 11,472 3.573
78.253
917,172
457,449 42.792
8,613 138,302 32,993
135.204 60,514 19,726
980 50,672 23.952 38,498
2,070
1,011,765
Vanance with Final Budget
Positive (Negative)
$ -6,077
20,849 5,234 2,646
(2.072) (3,802) 6,474
33.970 1.162
(14.014) 602
2,528 427
10,598
70,679
23,051 208
(113) 1,698 3,007
(24,204) 10,486
274 20
(672) 9,048
502 (70)
23,235
2011 Actual
$ 69,000 209,751
88.325 48.448 25.498 33.482
8,933 12.301 13.580 72,038 25,979 16.422 10,026 4,093
85,908
723,784
453.588 42,225
5,346 189,267 35.346
133,179 59.458 29.864
125 45,558 26.909 43,195
1,986
1,066,046
(contmued)
51
TOWN OF MAMOU, LOUISIANA General Fund
Budgetary Comparison Schedule - Expenditures (Continued) For the Year Ended December 31,2012
With Comparative Actual Amounts for the Year Ended December 31, 2011
2012
Highways and streets -Salanes Payroll taxes Maintenance and supplies Lighting Group insurance Telephone Insurance Miscellaneous Auto Equipment rental Professional fees
Total highways and streets
Culture and recreation -Salaries Payroll taxes Repairs and maintenance Matenals and supplies Auto Utilities and telephone Insurance Miscellaneous Cleaning and janitonal
Total culture and recreation
Budget Ongmal
110,000 10,000 36,000 57,000
150.000 3,000
55,000 17,000 31,000
-2.000
Fmal
119,000 10,000 67,000 53,000 87,000 3,000
75,000 17,000 25,000
-2,000
Actual
111,643 10,121 64,083 47,594 29,637
3,469 70,591 15,570 20,295
378 1,653
Vanance with Final Budget
Positive (Negative)
7,357 (121)
2.917 5,406
57,363 (469)
4,409 1.430 4,705 (378) 347
2011 Actual
110,103 9,696
37,894 55,467 75,707
2,924 67,011 16,018 22,824
1,051 623
471,000
8,000 1.000
14.000 14.000
1.000 49.000 91.000 1.000
179,000
458.000
14,000 14,000 1,300
48,000 70,000 1,000 3,500
151,800
375,034
17,104
14,283 991
47,005 51,640
13 3,095
134,131
82.966
(3,104) (283) 309 995
18.360 987 405
17,669
399,318
8,039
772 10,194
14,923 1,444
50,724 58,009
12 5,200
149,317
(continued)
52
TOWN OF MAMOU, LOUISIANA General Fund
Budgetary Companson Schedule - Expenditures (Continued) For the Year Ended December 31,2012
With Comparative Actual Amounts for the Year Ended December 31, 201
2012
Judicial -Salaries Payroll taxes Insurance Group insurance Matenals and supplies Repairs and maintenance Telephone Professional fees Miscellaneous
Total judicial
Capital outlay: General govemment
Building improvements
Public safety -Police-
Vehicles and equipment
Culture and recreation Building improvements
Total capital outlay
Total expenditures
Budget Original
62,000 4.000 1.000
35,000 3,000 1,000 2,000 --
108,000
-
15,000
-
15,000
$2,548,000
Final
37.000 3,000 1,000
19,000 1,400 -
2,000 15,000
-
78,400
-
51,603
-
51,603
$2,762,654
Actual
35,960 3.062
551 9,878 1,442
95 1,972
12,000 -
64.960
51,970
49,206
-
101,176
$2,604,238
Variance with Final Budget
Positive (Negative)
1,040 (62) 449
9,122 (42) (95) 28
3.000 -
13.440
(51,970)
2.397
-
(49.573)
$158,416
2011 Actual
52.152 4.450
730 25.236 3.652 1,325 2,262 -205
90,012
-
22.841
9.950
32.791
$2,461,268
53
TOWN OF MAMOU. LOUISIANA Special Revenue Fund
Sales Tax Fund
Budgetary Comparison Schedule For the Year Ended December 31.2012
With Comparative Actual Amounts forthe Year Ended December 31. 2011
2012
Revenues Taxes Intergovemmental Miscellaneous
Interest Appropriation from -
Mamou Gravity Drainage Distnct #5 Other
Total revenues
Budget Original
$ 636.480 -
2.000
-16.000
654,480
Final
$670,140 -
2.000
-11,000
683,140
Actual
$667,396 -
1,866
-14.125
683,387
Vanance with Final Budget
Positive (Negative)
$ (2.744) -
(134)
-3,125
247
2011 Actual
$ 646,797 44,756
1.400
17,925 45.984
756.862
Expenditures Current -
General govemment Audit and accounting Miscellaneous Industry and tounsm inducement
Total general govemment
Capital outlay -General govemment
Roofat city hail Public safety
Vehicles Building improvements
Highways and streets Street improvements
Culture and recreation Walking trail Equipment Plaza pavilhon improvements Improvements to ballpark parking tots
Total capital outlay
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses) Transfers from (to) -
Utility Fund General Fund
Total other financing sources (uses)
Excess (deficiency) of revenues over expenditures and other uses
Fund balance, beginning
Fund balance, ending
-12.480 45.000
57.480
-
.
-13.140 31.000
44.140
-
6.890 13,369 33,000
53,259
-
.
(6,890) (229)
(2.000)
(9.119)
-
.
6.280 12.885 72,145 91.310
17,940
12,050 85.000
85.000
60,000 8.000
238,000
295.480
359,000
(802,000)
(802,000)
(443,000)
826,325
$ 383.325
85,000
85,000
60.000 7,000
237,000
281.140
402.000
(100,000) (497.490) (597.490)
(195.490)
826.325
$630,835
19.625
58.700
31.544 2.483
112,352
165,611
517,776
(587,314)
(587,314)
(69.538)
826.325
$ 756.787
65.375
26.300
28.456 4.517
124.648
115,529
115.776
100,000 (89,824)
10.176
125.952
-
$ 125.952
-
17,925
17.264 20.000 85.179
176,489
580,373
(267,718)
(267,718)
312,655
513,670
$ 826,325
54
TOWN OF MAMOU, LOUISIANA Enterprise Fund
Utility Fund
Schedule of Number of Utility Customers (Unaudited)
December 31, 2012
Records maintained by the Town indicated the following number of customers were being serviced dunng the month of December 2012 and 2011
Department 2012 2011
Gas (metered) Water Sewerage
1,027 1,717 1,267
1,030 1,709 1,258
55
TOWN OF MAMOU, LOUISIANA
Schedule of Insurance In Force (Unaudited)
December 31,2012
Description of Coverage
Workmen's compensation -Employer's liability- policy limit Bodily injury by accident Bodily injury by disease
Surety bonds -Fidelity bond
Commercial general liability -Premises/operations Products/completed operations Boiler and Machinery - equipment Medical payments per person Medical payments per accident Fire legal liability
Law enforcement oflficers* comprehensive liability
Automobile liability
Public ofTicials' errors and omissions liability
Commercial fire and extended coverage -Buildings Contents Boiler and machinery - equipment Vehicle physical damage
Coverage Amounts
Statutory 500,000 100,000 100,000
160,000
500,000 500,000 525,000
1,000 10,000 50,000
500,000
500,000
500,000
6,261.300 3.400.000 2,025,000
103,385
56
TOWN OF MAMOU, LOUISIANA
Combined Schedule of Interest-Bearing Deposits - All Funds December 31.2012
Major Govemmental Funds: General Fund -
Certificate of Deposit - Worker's Comp Security Savings Account - Hospital Revenue Interest-bearing checking - General Interest-bearing checking - Payroll Interest-beanng checking - Insurance Contingency
Total General Fund
Special Revenue Funds -Sales Tax Fund
Interest-bearing checking - Sales Tax Fund Interest-bearing checking - Construction Account
Total Sales Tax Fund
Total Govemmental Funds
Proprietary Fund Utility Fund
Operating Account -Interest-bearing checking Certificate of Deposit
Water Revenue Fund -Interest-bearing checking Interest-bearing checking
Meter Deposit Fund -Certificate of Deposit Interest-bearing checking
Total Proprietary Fund
(C) (J) (J) (J) (S)
(S) (S)
Interest Rate
0 65% 0.40% 0.15% 0 15% 0 20%
0 15% 0.20%
Matunty Date
11/21/13 N/A N/A N/A N/A
N/A N/A
Total Book Value ,
$ 100,000 127,376 333,754 23,692
827
585,649
651,811 14,879
666,690
1,252,339
(C) (J)
(S) (S)
(S) (J)
0.15% 0.75%
0.15% 0 20%
0 35% 0.15%
N/A 03/16/13
N/A N/A
07/28/13 N/A
143.512 48,934
71,995 31,976
182,563 135,289
614,269
Total Interest-bearing Deposits and Investments - All Funds $1,866,608
Certificates of deposit, savings account and interest-bearing checking accounts with —
(C) Citizens Bank, Ville Platte, Louisiana (J) Jeff Davis Bank, Mamou, Louisiana (S) Sabine State Bank, Many, Louisiana
57
TOWN OF MAMOU, LOUISIANA
Comparative Statement of Net Position Proprietary Funds
December 31, 2012 and 2011
ASSETS Current assets
Cash Interest-beanng deposits Receivables -
Accounts, net Unbilled utility receivables Accrued interest receivable Other
Due from other funds Inventory - natural gas Prepaid items
Total current assets Noncurrent assets
Restricted assets -Interest-beanng deposits
Capital assets, net of accumulated depreciation Total noncurrent assets
Total assets
LIABILITIES Current liabilities*
Accounts and other payables Compensated absences payable Claims payable
Total current liabilities
Noncurrent liabilities Customers' deposits
Total liabilities
NET POSITION Invested in capital assets, net of related debt Unrestncted
Total net position
Busmess-type Activities Enterpnse Fund
Govemmental Activities Intemal Service Fund
2012 2011
1 395,694
1 406,126
2012 2011
$ 5,996 $ 7,741
158,098
73,192
8 208
42,552
23,225
13,175
706,153
218.575
3,307,370
3.525.945
4,232,098
58,409 3,987
-62,396
218,575
280,971
3,307,370
643,757
$3,951,127
148,390
85,376
67 225
658,027
21,687
13,122
1,333,021
211.400
3,438.900
3,650.300
4,983,321
68,686 8,245
-76,931
211,400
288,331
3,438,900
1,256,090
$4,694,990
----
27.881
-10,568
44,445
.
--
44,445
-37.859
37.859
.
37,859
_
6,586
$ 6,586
---717
27,881
-11,669
48,008
.
--
48,008
-45,899
45,899
.
45,899
,
2,109
$ 2,109
58
TOWN OF MAMOU, LOUISIANA
Comparative Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
Years Ended December 31,2012 and 2011
Business-type Activities-Enterprise Fund
2012 2011
Govemmental Activities-Intemal Service Fund 2012 2011
Operating revenues Charges for services Permits, reconnections and penalties Miscellaneous
Total operating revenues
Operating expenses* Gas department expenses Water department expenses Sewerage department expenses Depreciation expense Amortization expense Self insurance expenses
Total operating expenses
Operating income
Nonoperating revenues (expenses) Interest income
Income before contributions and transfers
Capital contributions
Income before transfers
Transfers out
Change in net assets
Net position, beginning
Net position, ending
$1,724,748 63,729 13,519
1.801,996
576.467
(1,320.330)
(743.863)
4,694.990
$3,951,127
$1,745,946 68.354 12,614
1,826,914
$361,940 $682,596
786,399
(395,697)
390,702
4,304,288
$4,694,990
361,940 682,596
505,073
272,914
252,001
232,430
1,262,418
539,578
1,889
541.467
35,000
604,996
301.441
288.196
202,480
4,942
1,402,055
424,859
3,022
427.881
358,518
357,463
357,463
4.477
4,477
621,031
621,031
61,565
61,565
4,477 61.565
4,477 61,565
2,109 (59,456)
$ 6,586 $ 2,109
59
TOWN OF MAMOU, LOUISIANA Enterprise Fund
Utility Fund
Departmental Analysis of Revenues and Expenses Years Ended December 31, 2012 and 20 U
Totals Gas Water Sewer
Operating revenues Customers service charges Permits, reconnections and penalties Miscellaneous
Total operating revenues
Operating expenses: Salanes Payroll taxes Group Insurance Gas purchased Maintenance and supplies Safe water dnnking fee Lab fees Depreciation expense Amortization expense Utilities Telephone Truck operation Bad debt expense Insurance Miscellaneous Professional fees Training
Total operating expenses
Operating income
2012
$1,724,748 63,729 13,519
1,801,996
195,906 16,769 79,033
255,797 152.793
4,752 5,700
232,430 -
133.927 6,618
28,378 10,061 82,891 6,510
47,373 3,480
1,262,418
$ 539,578
2011
51,745,946 68,354 12,614
1,826,914
220,936 18,200
126,177 323,353 140,377
4,752 5,670
202,480 4,942
135,697 6,589
29,277 22,179 92,200 7,626
55,724 5,876
1,402,055
$ 424,859
2012
$764,226 28,041 9,134
801,401
77,619 6,702
24,698 255,797 56,337
--
16,867 -
5,704 3,365
12,655 4,941
26,428 4,077
26,750 -
521,940
$279,461
2011
$ 772,079 30,076 8,906
811,061
82,298 6,749
37,853 323.353
52,859 --
7,969 -
6.524 3,199
11,011 9.758
28,679 4,624
35.545 2,544
612,965
$ 198,096
2012
$511,072 19.119 1,885
532.076
54,885 4,643
24,698 -
55,591 4,752 1,175
75,526 -
74.555 -
7,409 3,119
27,501 1,237
11,254 2,095
348,440
$183,636
2011
$516,803 20.506
1.416 538,725
58,769 4,743
37,853 -
56,385 4,752 -
75,372 -
79,272 -
8.009 7,406
27,611 1,177
13,942 1,522
376,813
$161,912
2012
$449,450 16,569 2,500
468,519
63,402 5,424
29,637 -
40,865 -
4,525 140,037
-53,668 3.253 8.314 2,001
28,962 1,196 9,369 1,385
392,038
$ 76,481
2011
$457,064 17,772 2,292
477,128
79,869 6,708
50.471 -
31.133 -
5.670 119,139
4,942 49,901 3,390
10,257 5,015
35,910 1,825 6,237 1,810
412,277
$ 64,851
60
COMPLIANCE
AND
INTERNAL CONTROL
61
C Burton Kolder CPA' Russell F Champegne CPA* Victor R Slaven. CPA" Gerald A. ThitxxJeaux. Jr CPA* Rat)ertS Carter CPA* Arthur R Mixon CPA' Penny Angelle Scnjogins CPA CtvisttneC Ooucet, CPA
KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS
Wanda F Arcement, CPA.CVA Allen J LaBry, CPA Albert R. Leoer CPA.PFS CSA* Marshall W Gutdry, CPA Stephen R Moore Jr CPA,PFS.CFP* ChFC' James R Roy, CPA Robert J Metz. CPA Alan M Taylor. CPA Kelly M Doucet CPA Cheryl L Bartley CPA Mandy B Self CPA PaulL Detcambre. Jr .CPA Knstin B Dauzat. CPA Matthew E Margaofio CPA JaneR Hebert CPA Bryan K. Joubert. CPA Stephen J Anderson. CPA W Jeffrey Lowry, CPA
Retired Conrad 0 Chapman CPA* 2006 Tynes E Mwon, Jr CPA 2011 P Troy Courville CPA* 2013
' A Pfufnsional AccounUng Corporation
OFFICES
183 South Beadle Rd Lafayette LA 70508 Phone (337) 232-4141 Fax (337) 232-8660
450 East Main Street New Iberia, LA 70560
Phone (337) 367-9204 Fax (337) 367-9208
113 East Bndoe SL 200 South Main Street Breaux Bndge LA 70517 Abbeville LA 70510 Phone (337) 332-4020 Phono {337) 893-7944 Fax (337) 332-2867 Fax (337) 893-7946
1234 David Dr Ste 203 Morsan City. LA 70380 Phone (985) 364-2020 Fax (985) 384-3020
408 West Cotton Street Ville Platte LA 70586 Phorw (337) 36^-2792 Fax (337) 363-3049
332 West Sixth Avenue Oberiin LA 70655 Phone (337) 63W737 Fax (337) 63»-4S68
1013 Mam Street Franklin LA 70538
Phono (337) 828-0272 Fax (337) 828-0290
133 East WaddilSL Marksville LA 71351
Phone (318) 253-9252 Fax (318) 253-8681
1428 Metro Dnve Alexandria. LA 71301
Phone (318) 442-4421 Fax (318) 442-9833
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON
AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNK4ENTAUDITING STANDARDS
WEBSrTE WWW KCSRCPAS COM
The Honorable Ricky Fontenot, Mayor and Members of the Board of Aldermen
Town of Mamou, Louisiana
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the govemmental activities, the business-type activities, and each major fund of the Town of Mamou, Louisiana, as of and forthe year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the Town of Mamou, Louisiana's basic financial statements and have issued our report thereon dated June 21, 2013 The report on the Town of Mamou, Louisiana was adverse because the financial statements do not include financial data of all component units of the Town of Mamou, Louisiana. Except as discussed in the preceding sentence, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town of Mamou, Louisiana's intemal control over financial reporting (intemal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of Mamou, Louisiana's intemal control Accordingly, we do not express an opinion on the effectiveness of the Town of Mamou, Louisiana's intemal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis A material weakness is a deficiency, or a combination of deficiencies, in intemal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in intemal control that is less severe than a material weakness, yet important enough to merit attention by those charged with govemance.
Member of* AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 62
Member of SOCIETY OF LOUISIAAW
CERTIFIED PUBLIC ACCOUNTANTS
Our consideration of intemal control was for the limited purpose descnbed in the first paragraph of this section and was not designed to identify all deficiencies in intemal control that might be material weaknesses or, significant deficiencies Given these limitations, during our audit we did not identify any deficiencies in intemal control that we consider to be material weaknesses However, material weaknesses may exist that have not been identified
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Mamou, Louisiana's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and matenal effect on the determination of financial statement amounts However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Govemment Auditmg Standards.
The purpose of this report is solely to descnbe the scope of our testing of intemal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's intemal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditmg Standards in considering the entity's intemal control and compliance Accordingly, this communication is not suitable for any other purpose Although the intended use of this report may be limited, under Louisiana Revised Statute 24*513, this report is distributed by the Legislative Auditor as a public document.
Kolder, Champagne, Slaven & Company, LLC Certified Public Accountants
Lafayette, Louisiana June 21,2013
63
TOWN OF MAMOU. LOUISIANA
Summary Schedule of Current and Prior Year Audit Findmgs and Corrective Action Plan
Year Ended December 31, 2012
Fiscal Year Fmdmg Initially
Ref No Occurred Description of findmg
CURRENT YEAR (12/31/12) -
Intemal Control
There were no intemal control findmgs to be reported
Compliance
There were no compliance findmgs to be reported
Management Letter
12-1 (ML) 2006
Corrective Action Taken
A continuing significant gas loss occurred Despite efforts to locate and repair gas leaks, this loss has not significantly decreased from pnor years The Town should investigate possible reasons for the significant gas loss and contmue efforts to reduce the loss
Corrective Action Planned
Name of Anticipated Contact Completion Person Date
The Town will continue to investigate possible reasons for the mcreasing gas loss and contmue efforts to reduce the loss
Guy Pucheu, Town Clerk
12/31/13
PRIOR YEAR(12/31/11)--
Intemal Control
II-I(IC) 2011
Compliance
11-2(C) 2011
The Town did not have adequate controls m place to ensure compliance with the Budget Law, as specified in 11-2(C) below
The Town did not amend the Sales Tax Special Revenue Fund budget m accordance with LSA-RS 39 13n(A)(2) that states when total actual expenditures and other uses plus projected expenditures and other uses for the remainder of the year are exceeding the total budgeted expenditures by five percent or more, the budget must be amended Total expenditures exceeded budgeted expenditures by 41% or $47,340
Yes
Yes
(continued)
64
TOWN OF MAMOU, LOUISIANA
Summary Schedule of Current and Prior Year Audit Findings and Corrective Action Plan (Contmued)
Year Ended December 31, 2012
Ref No
Fiscal Year Fmdmg Initially
Occurred Description of fmding
Corrective Action Taken
PRIOR YEAR(12/31/n)~
Management Letter
11-3(ML) 2006 A continuing significant gas loss occurred Despite efforts to locate and repair gas leaks, this loss has not significantly decreased from pnor years The Town should investigate possible reasons for the significant gas loss and contmue efforts to reduce the loss
11-4(ML) 2011 The Town should take measures to replenish the fund balance of the General Fund Current fund balance is $22,720 The Town should have a fund balance level that can sustain its operations for at least two months, assuming no incoming revenues The Town should evaluate General Fund revenues and expenditures to determine where revenues could be increased or expenditures decreased in order to replenish the fund balance
Corrective Action Planned
Name of Contact Person
Anticipated Completion
Date
No See current year finding 12-1 (ML)
Yes
65