east feliciana parish economic development district...2010 sep 30 ph v\^^ east feliciana parish...

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RECEIVED LEGISLATIVE AUOITQP.

2010 SEP 30 PH V \^^

EAST FELICIANA PARISH ECONOMIC DEVELOPMENT DISTRICT

JACKSON, LOUISIANA

ANNUAL FINANCIAL STATEMENTS

YEAR ENDED JUNE 30. 2009

Under provisions of state law, this report is a public document. A copy 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, where appropriate, at the office of the parish clerk of court.

Release Date


JACKSON, LOUISIANA

ANNUAL FINANCIAL STATEMENTS

AS OF AND FOR THE YEAR ENDED JUNE 30, 2009

PAGE

Management's Discussion and Analysis 1-6

Independent Auditor's Report on Financial Statements 7-8

Report on Compliance and Internal Control over Financial Reporting

Based on an Audit of Financial Statements performed In

accordance with Government Auditing Standards 9-10

Basic Financial Statements:

Government Wide Financial Statements

Statement of Net Assets 11

Statement of Activities 12

Fund Financial Statements:

Balance Sheet - Government Funds 13

Reconcilatlon of the Balance Sheet - Governmental Funds

to the Statement of Net Assets 14

Statement of Revenues, Expenditures, and Changes in" Fund

Balance - Governmental Funds 15-16

Reconcilation of the Statement of Revenues, Expenditures, and Changes

in Fund Balances - Governmental Funds to the Statement of Acti> 17

Notes to Financial Statements 18-27

Required Supplementarv Information

Budgetary Comparison Schedule - General Fund 28

Supplemental Information

Summary Schedule of Findings and Questioned Costs 29

Corrective Action Plan for Current Year Audit Findings 30

MANAGEMENT'S DISCUSSION AND ANALYSIS

EAST FELICIANA PARISH ECONOMIC DEVELOPMENT DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS

June 30, 2009

PAST ACCOMPLISHMENTS:

The East Feliciana Parish Economic Development District a.k.a. EFPEDD held twelve monthly meetings, rotating each meeting between the five municipalities and villages of Norwood, Wilson, Slaugher, Clinton and Jackson.

MASTER PLAN

All throughout the year EFPEDD has diligently focused on the Strategic Master Plan for the parish having our first public meeting at the School Board Office in July 2008, followed by another public meeting September 15, 2008 with Ken Dawson, West Feliciana parish police juror giving a presentation about their progress with the West Feliciana Master Plan. Also, we had Max Conrad. LSU Professor and he brought his planning students to our meeting to work up facts on the parish and help with ideas for the planning. Grants were applied for from USDA and Pennington Foundation with success from Pennington for $50,000, while the USDA grant is still being reviewed. We are working on partnering with the Center for Planning Excellence. In January 2009, EFPEDD sent Board member Mayor Bobbie Bourgeois of Slaugher to the National Smart Growth Conference in New Mexico and she and Slaughter alderman Nick St. Germaine worked up a power point presentation to present at our February board meeting and on March 5, 2009 EFPEDD held a reception for the private investors who donated private funds to the Master Plan where Bobbie repeated the power point presentation and the guests were given an update on the progress ofthe Master Plan.

JACKSON AIRPORT & SUPERIOR HOMES

Both projects have been ongoing for the 7-1 -2008 thru 6-30-2009 year. Dave Bowman, the EFPEDD economic consultant, EFPEDD Chairman, Larry Thomas and EFPEDD treasurer Cameal Woodyear, met with Anthony Marino from Metro Airport to help assess the condition ofthe airport strip and attended several other meetings with DCI Warden Steve Radar, LA State DHH, the Correction Secretary, Jimmy LeBlanc. The year started off with the finalizing of Superior Homes and then through out the year building was worked on and EFPEDD monitored the work all the way up until the time EFPEDD was told it was put on hold by the Superior Home office in North Dakota.

November 2008 - EFPEDD received a grant from ENTERGY to host a reception at the American Film Festival in Santa Monica, CA. The purpose was to promote, market and recruit film business to come to East Feliciana. Larry Thorns, Chairman and Dave Bowman, consultant attended. We started work on the EFPEDD website.

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EAST FELICIANA PARISH ECONOMIC DEVELOPMENT DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS

June 30, 2009

February 2009 - Board member George Turner attended the Special Economic Development Forum at Southeastern University. Dave Bowman, Larry Thomas, Cameal Woodyear, Audrey Faciane had a meeting with Skip Smart, and Patrick Witty with L.E.D. to discuss the airport, bridge, use of school board property. Superior Homes, the Master Plan and possible grants from the State.

May 2009 - EFPEDD nominated WYESCO for the Lantern Award - Also in May, several board members met in Gonzales with Ascension Parish planner Ricky Compton and his associate to discuss problems and roadblocks they have experienced in developing Ascension's Plan.

June 2009 - EFPEDD legislatively extended completion date for the Master Plan to 6/30/2012.

OVERVIEW OF THE FINANCIAL STATEMENTS

The annual report consists of four parts - management's discussion and analysis {this section), the basic financial statements, required supplementary information, and other supplemental information. The basic financial statements include two kinds of statements that present different views of the Library:

• The first two statements on pages 11 and 12 are government-wide financial statements that provide information about the activities of the East Feliciana Parish Economic District as a whole and present a longer-term view of the District's finances.

• The remaining statements starting on page 13 are fixed financial statements that focus on individual parts of the District's government, reporting the District's operations in more detail than the government-wide statements.

• The governmental funds statements tell how general government services were financed in the short term as well as what remains for future spending.

The financial statements also include notes that explain some of the information in the financial statements and provide additional detailed data. The notes are followed by a section of required supplementary information that further explains and supports the information in the financial statements as well as providing budgetary comparison data. The last section ofthe report contains additional supplemental information regarding the governmental fund-general fund. The rest of this overview section of management's discussion and analysis explains the structure of contents of each of the statements.

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EAST FELICIANA PARISH ECONOMIC DEVELOPMENT DISTRICT JACKSON, LOUISIANA

MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30. 2009

Government-wide Statements

The government-wide statements report information about the District as a whole using the accrual basis of accounting, which is similar to that which is used by private sector companies. The statement of net assets on page 11 includes all of the District's assets and liabilities. All ofthe current year's revenues and expenses are accounted for in the statements of activities on page 12, regardless of when cash Is received or paid.

These two statements report the District's net assets and changes in them. Net assets - the difference between the District's assets and liabilities - is one way to measure the District's financial health, or financial position. Over time, increases and decreases in the District's net assets are one indicator of whether its financial health is improving or deteriorating. Other nonfinancial factors will also need to be considered to assess the overall health of the District.

The government-wide financial statements of the District, reports only one type of activity -governmental activities. All ofthe District's basic services are included here, such as district services and general administration.

Fund Financial Statements

The fixed financial statements, beginning on page 13, provide more detail about the District's most significant funds - not the District as a whole. State laws require the establishment of some funds. Funds are accounting devices that the District used to keep track of specific sources of funding and spending for particular purposes.

The District used only the governmental type of fund with the following accounting approach. Most ofthe District's basic services are included in governmental funds, which focus on how cash and other financial assets that can be readily converted to cash flow in and out of those funds, and the balances left at year-end that are available for spending. Those funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can be readily converted to cash. The governmental fund statements therefore provide a detailed short-term view of the District's general government operations and the basic services it provides, and helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the District's programs. Since this information does not include the additional long-term focus of government-wide statements, we provide reconciliations on the subsequent pages that explain the relationship (or difference) between the two different type statements

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MANAGEMENTS DISCUSSION AND ANALYSIS JUNE 30, 2009

FINANCIAL ANALYSIS OF THE EFPEDD AS A WHOLE

Net assets. The EFPEDD's combined net assets increased $27,414 between fiscal years 2008 and 2009. (See Table 1 below)

Current and other assets Capital assets, net

Total assets

Current liabilities

Noncurrent liabilities

Total liabilities

Net assets:

Table 1 District's Net Assets

Governmental Activities

2009

$

$

1.

1,055.484 6.117

1.061,601

110.031 810.000

920.031

Invested in capital assets, net of depreciation

Restricted Unrestricted

Total net assets

6,117 112,117 23.336

$ 141.570

The total cost of all programs and services increased from the prior year. The EFPEDD's expenses cover all services, which it offers to the public. In addition the EFPEDD received additional funds In the form of a State Appropriation of $47,500.

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MANAGEMENTS DISCUSSION AND ANALYSIS JUNE 30, 2009

Governmental Activities

Table 2 Changes in District's

Revenues Program Revenues

Charges for services State and local grants and donations

Other Revenues Tota! revenues

Expenses General governmental

Total expenses

Increase in net assets

Net Assets

Governmental Activities 2009

-0-

93.643 $93,643

66.229 $66,229

$27,414

FINANCIAL ANALYSIS OF THE EFPEDD'S FUNDS

As the EFPEDD completed the year, its governmental funds reported a combined fund balance of $1,055,484, reflecting an increase over the prior year. All, but $112,117 of this fund balance is unrestricted and undesignated.

General Fund Budgetary Highlights

During the year, the EFPEDD operated well within its budget and found no need to amend it. Both revenues and expenditures were in favorable positions due to constant oversight and monitoring procedures.

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MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2009

CAPITAL ASSET

Capital Assets

At June 30, 2009 the EFPEDD had invested $6,117 in capital assets. (See Table 3).

Table 3 District's Capital Assets

(net of accumulated depreciation)

Governmental Activities 2009

Office Equipment 6.117 Total $6.117

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES

The entity is dependent on the State of Louisiana for its revenue. Therefore the entities future revenues are expected to be lower with the current year. The budget for 2010 is approximately the same as for 2009.

CONTACTING THE EFPEDD'S FINANCIAL MANAGEMENT

The financial report is designed to provide our parishioners, taxpayers, investors and creditors with a general overview of the District's financial and to demonstrate the Library's accountability for the money it receives. If you have questions about this report or need additional information, contact Mr. Corneal Woodyear, Treasurer, P. 0. Box 667, Jackson, Louisiana 70748.

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INDEPENDENT AUDITOR'S REPORT

W. RANDALL PEAY, LTD. (A Professional Accounting Corporation)

W. RANDALL PEAY CERTIFIED PUBLIC ACCOUNTANT

POST OFFICE BOX 8344 CLINTON, LOUISIANA 70722

(225)683-9515 Member:

American Institute of Certified Public Accountants Society of Louisiana Certified Public Accountants

Independent Auditor's Report

Board of Directors East Feliciana Parish Economic Development District Jackson, Louisiana

I have audited the accompanying basic fmancial statements of the East Feliciana Parish Economic Development District, as of and for the year ended June 30, 2009. These basic financial statements are the responsibility ofthe East Feliciana Parish Economic Development District. My responsibility is to express an opinion on these basic financial statements based on my audit.

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

In my opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position ofthe East Feliciana Parish Economic Development District, as of June 30,2009 and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America..

In accordance with Govemment Auditing Standards, I have also issued a report dated May 31,2010, on my considerafion ofthe East Feliciana Parish Economic Development District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Govemment Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

The Management's Discussion and Analysis and budgetary comparison information as listed in the foregoing table of contents, are not a required part ofthe basic financial statements, but are supplementary information required by the Govemmental Accounting Standards Board. I have applied certain limited procedures, which consisted principally of inquires of management regarding the methods of measurement and presentation ofthe supplementary information. However, I did not audit the information and express no opinion on it.

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My audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's basic financial statements. The accompanying supplemental information schedules and other information as listed in the foregoing table of contents are presented for the purpose of additional analysis and are not a required part ofthe basic financial statements ofthe East Feliciana Parish Economic Development District. Such information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Clinton, Louisiana May 31, 2010

W. RANDALL PEAY, LTD. (A Professional Accounting Corporation)

W, RANDALL PEAY CERTIFIED PUBUC ACCOUNTANT

POST OFFICE BOX 8344 CLINTON, LOUISIANA 70722

(225)683-9515 Member:

American Institute of Certified Public Accountants Society of Louisiana Certified Public Accountants

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

AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Board of Directors East Feliciana Parish Economic Development District Jackson, Louisiana

I have audited the financial statements ofthe East Feliciana Parish Economic Development District, as of and for the year ended June 30,2009, and have issued my report thereon dated May 31,2010. I conducted my audit in accordance with auditing standards generally accepted in the Untied States of America and the standards applicable to financial audits contained in Govemment Auditing Standards, issued bv the Comptroller General ofthe United States.

Intemal Control Over Financial Reporting

In planning and performing my audit, I considered the East Feliciana Parish Economic Development District's intemal control over financial reporting as a basis for designing my auditing procedures for the purpose of expressing my opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness ofthe Entity's intemal control over financial reporting. Accordingly, I do not express an opinion on the effectiveness ofthe Entity's intemal control over financial reporting.

A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement ofthe entity's financial statements that is more than inconsequential will not be prevented or detected by the enfity's intemal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the entity's intemal control.

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

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the East Feliciana Parish Economic Development District's financial statements are fi-ee of material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of my audit, and accordingly, I do not express such an opinion. The results of my tests disclosed an instances of noncompliance or other matters that are required to be reported under Govemment Auditing Standards.

On October 30, 2009 East Feliciana Parish Economic Development District was notified of its noncompliance status with regards to a Cooperative Endeavor Agreement with Superior Homes of Louisiana and the Louisiana Department of Economic Development ( See Note 11).

This report is intended solely for the information and use of the East Feliciana Parish Economic Development District's management, others within the entity, and the Legislative Auditor and is not intended to be and should not be used by anyone other than these specified parties.

Clinton, Louisiana May 31, 2010

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BASIC FINANCIAL STATEMENTS


STATEMENT OF NET ASSETS JUNE 30.2009

ASSETS Cash and cash equivalents Accounts Receivable Capital assets net of depreciation Investment Restricted Assets: Cash for Building Cash in Strategic Master Plan

Total Assets

26,883 34,251 6,117

882,233

17.767 94,350

$ 1.061,601

LIABILITIES AND NET ASSETS

Liabilities Accounts Payable Mortgage Payable Accrued Interest Expense

Total Current Liabilities

Mortgage Payable

Total Long Term Liabilities

Total Liabilities

2,886 90.000 17,145

810.000

110.031

810,000

920.031

Net Assets Unrestricted net assets Temporarily restricted;

Cash for Building Gash Stragegic Master Plan

Investment in Capital Assets

Total net assets

23.336

17.767 94.350

6.117

141,570

See accountant's report 11


STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30. 2009

Expenses

Program Revenues

Operating

Charges for Grants and

Services Contributions

net (Expense)

Revenue and

Changes in

Net Assets

Governmental

unit

FUNCTIONS PROGRAMS

Governmental activities

Program

Donations - restricted

Total program activities

$66,229 $0

66.229 0

General Revenues:

Interest and investment earnings

$69,293 $24,350

93.643

$3,064

$24,350

27.414

0

Total general revenues and special items 0

Changes in Net Assets

Net assets - July 1, 2008 - as restated

27,414

114.156

Net assets - June 30,2009 $141 .CT

See Accountant's Report

12


GOVERNMENTAL FUNDS

BALANCE SHEET

JUNE 30.2009

General

Fund

ASSETS

Cash and cash equivalents

Accounts Receivable

Investments

Cash for Building

Cash in Strategic Master Plan

TOTAL ASSETS

LIABILITIES AND FUND BALANCES

LIABILITIES

Accounts payable

Mortgage payable

Accrued interest expense

TOTAL LIABILITIES

FUND BALANCE

Unreserved-undesignated

Cash for Building Cash Strategic Master Plan

TOTAL FUND BALANCES

TOTAL LIABILITES AND FUND BALANCES

$26,883

$34,251 $882,233

$17,767

94,350

$1,055,484

2.886

900,000

$17,145

920.031

23.336

17,767

94.350

135,453

$1.055,484


13


RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS

JUNE 30.2009

Total fund balances - Governmental Funds $135,453

Cost of captial assets at June 30,2009 10,458

Less: accumulated depreciation as of June 30, 2009 (4,341) 6,117

Total net assets at June 30, 2009 - Governmental Acitivites


. 14

EAST FELICIANA PARISH ECONOMIC DEVELOPMENT DISTRICT GOVERNMENTAL FUND

STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED JUNE 30. 2009

Revenue State of Louisiana appropriation Grant - AFM Expenses Greater Baton Rouge Economic District Donations - Master Plan

$ $

47,500 3.000 18,793 24,350

Total revenue

Expenditures

Director Fees AFM Expenses Office supplies Web site Meetings Donations Interest Miscellaneous Postage Printing Professional contracts Repairs & maintenance Rent Travel Professional fees Utilities Pest Control Capital outlay

Total Expenditures

Excess of revenues over expenditures

Fund balance - July 1, 2008

Fund balance - June 30, 2009

11,350 2,928 1.192

109 1,389 3,500

17,145 604 410

1.895 12,000

778 1,200 5,242

800 1,200

146 2.886

93.643

64.774

28.869

31.885

60,754

See Accountant's Report 15


RECONCILATION OF THE GOVERNMENTAL FUNDS

STATEMENT OF REVENUES. EXPENDITURES. AND

CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES

JUNE 30. 2009

Net change in fund balances - total govenmental funds $28,869

Accounts reported for governmental activities in the statement of activities

are different because:

Governmental 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 expenses. This Is the amount which

depreciation exceeded capital outlays In the current period:

Deprecialton expense (4,341)

Capital outlays 2,886 (1,455)

Changes in net assets of governmental activities £27.414


16

EAST FELICIANA PARISH ECONOMIC DEVELOPMENT DISTRICT JACKSON. LOUISIANA

NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 2009

INTRODUCTION

The East Feliciana Parish Economic Development District is a political subdivision ofthe State of Louisiana erected under RS 33:2740.62 in 2005 for the primary object and purpose of promoting and encouraging economic and industrial development and tourism opportunities, stimulating the economy through renewed commerce, industry, research and tourism, and for the utilization and development of natural and human resources ofthe area by providing job opportunities within the boundaries of East Feliciana Parish. The District shall be govemed by a thirteen member board of commissioners. All commissioners shall be qualified voters and taxpayers within East Feliciana Parish during their temi of office and shall reside or shall have their principal place of business or profession in or own property in East Feliciana Parish. The East Feliciana Parish Development District office is located in Jackson, Louisiana.

Note#l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Presentation

The accompanying basic financial statements ofthe East Feliciana Parish Economic Development District have been prepared in conformity with govemmental accounting principles generally accepted in the Untied States of America. The Govemmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing govemmental accounting and financial reporting principles. The accompanying basic financial statements have been prepared in conformity with GASB Statement 34, Basic Financial Statements and Management's Discussion and Analysis - for State and Local Govemment, issued in June 1999.

B. Reporting Entitv

Govemmental Accounting Standards Board No. 14 established criteria for determining component units. The basic criterion for including a potential component unit within the reporting entity is financial accountability. The GASB has set forth criteria to be considered in determining financial accountability. This criteria includes:

I. Appointing a vofing majority of an organization's governing body.

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(Continued)

C . Fund Accounfing

The EFPEDD uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid management by segregating transactions related to certain functions and activities.

A fund is a separate accounting entity with a self-balancing set of accounts. On the other hand, an account group is a financial reporting device designed to provide accountability for certain assets and liabilifies that are not recorded in the funds because they do not directly affect net expendable available financial resources.

Funds ofthe EFPEDD are classified as govemmental funds. Govemmental funds account for the district's general acdvifies, including the coUecfion and disbursement of specific or legally restricted monies, the acquisition or constmction of general fixed assets, and the servicing of general long-term obligations. Govemmental funds ofthe district include:

D. Govemmental Funds

Govemmental funds account for all or most ofthe district's general activities. These funds focus on the sources, uses, and balances of current financial resources. Expendable assets are assigned to the various govemmental funds according to the purposes for which they may be used. Current liabilities are assigned to the flind from which they will be paid. The differences between a govemmental fund's assets and liabilifies is reported as fund balance. In general, fund balance represents the accumulated expendable resources which may be used to finance future period programs or operations of the district. The following are the district's govemmental funds:

General fund - the primary operating fund ofthe district. It accounts for all financial resources, except those required to be accounted for in other funds. The General Fund is available for any purpose provided it is expended or transacted in accordance with state and federal laws and according to the district policy.

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Special Revenue Funds

The special revenue funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.

E. .Measurement Focus/Basis of Accounting

Government-Wide Financial Statements (GWFS)

The Statement of Net Assets and the Statement of Acfivities display information about the District as a whole. These statements include all the financial activities of the District. Information contained in these statements refiect the economic resources measurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange or exchange-like transactions are recognized when the exchange occurs (regardless of when each is received or disbursed). Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transacfions are recognized in accordance with the requirements of GASB Statement no. 33, Accounting and Financial Reporting for Nonexchange Transactions.

F. Measurement Focus/Basis of Accounting (continued)

Program Revenues - Program revenues included in the column labeled Statement of Activities (Statement B) are derived directly from District users as a fee for services; program revenues reduce the cost ofthe function to be financed from the library's general revenues.

Fund Financial Statements (FFS)

The amounts reflected in the General Fund of the Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balance are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. The statement of revenues, expenditures, and changes in fund balances reports on the sources (i.e. revenues and other fmancing sources) and used (i.e. expenditures and other funding uses) of current financial resources. This approach is then reconciled, through adjustment, to a govemment-wide view ofthe library's operations (See the reconciliation statements).

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(Confinued)

The amounts reflected in the General Fund in the FFS use the modified accmal basis of accounting. Under the modified accmal basis of accounting, revenues are recognized when susceptible to accmal (i.e., when they become both measurable and available). Measurable means the amount ofthe transaction can be determined and available means collectable within the current period or soon enough thereafter to pay liabilifies ofthe current period. The District considers all revenues available if they are collected within 60 days after the fiscal year end. Expenditures are recorded when the related fund liability is incurred, except for interest and principal payments on general long-term debt which is recognized when due, and certain compensated absences and claims and judgements which are recognized when the obligations are expected to be liquidated with expendable available financial resources. The govemmental funds use the following practices in recording revenues and expenditures:

G. Measurement Focus/Basis of Accounting (continued)

Revenues

Where grant revenue is dependent upon expenditures by EFPEDD, revenue is recognized when the related expenditures are incurred.

Interest income on time deposits (certificates of deposit) is recorded when eamed.

Substantially all other revenues are recorded when received.

Expenditures

Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred..

Other Financing Sources (Uses)

Transfers between funds, which are not expected to be repaid, are accounted for as other financing sources (uses) and are recorded when incurred.

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(Continued)

H. Budgets

The treasurer directs the preparation of a proposed budget annually and submits it the Board for adoption.

A summary of the proposed budget, along with the public hearing, details the availability ofthe proposed budget for public inspecUon, are advertised in the official journals at least ten days prior to the date of the public hearing. After the public hearing is held, the budget is formally adopted at a regular board meeting. A summary ofthe adopted budget is published in the official joumal.

Formal budget integration is employed as a management control device during the year.

Budgetary amendments require the approval ofthe board. All budgetary appropriations lapse at the end ofthe year.

Budgetary amounts included in the accompanying financial statements reflect the original adopted budget and all budget amendments.

I. Encumbrances

The district does not use encumbrance accounting..

J. Cash and Cash Equivalents

Cash includes amounts in demand deposits, interest-bearing deposits, and time deposits.. Cash equivalents include amounts in time deposits and those investments with original maturities of 90 days or less. Under state law, the district may deposit funds in demand deposits, interest-bearing demand deposits, or time deposits with state banks organized under Louisiana law or any other state ofthe Untied States, or under the laws ofthe United States.

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(Continued)

K. Investments

Investments are limited by Louisiana Revised Statue (R.S.) 33:2955 and the District's investment policy. If the original maturiues of investments exceed 90 days, they are classified as investments; however, if the original maturities are 90 days or less, they are classified as cash equivalents.

L .Prepaid Expenses

There were no prepaid expenses at June 30, 2009.

M.. Capital Assets

Capital assets are capitalized at historical cost or estimated historical cost if historical cost is not available. Donated assets are recorded at their estimated fair market value at the date of donation. The district maintains a threshold level of $500 or more for capitalizing capital assets.

Capital assets are recorded in the Statement of Net Assets and Statement of Activities. Since surplus assets are sold for an immaterial amount when declared as no longer needed for public purposes, no salvage value is taken into consideration for depreciation purposes. All capital assets are depreciated using the straight-line method over the following useful lives.

Equipment & Fumiture 5 - 7 years

N. Restricted Net Assets

For govemment-wide statement of net assets, net assets are reported as restricted when constraints placed on net asset use are either:

a. extemally imposed by creditors (such as debt covenants), grants, contributors, or laws or regulations of other govemments; and

b. imposed by law through constitutional provisions or enabling legislafion.

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NOTES TO THE FINANCLM:. STATEMENTS JUNE 30. 2009

(Continued)

O. Fund Equity

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

P .Useof Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make esfimates and assumpfions that affect the reported amounts of assets and liabilifies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Note #2 CASH AND CASH EQUIVALENTS

These deposits are stated at cost which approximates market. Under state law, these deposits must be secured by federal deposit instu^ance or the pledge of securifies owned by the fiscal agent bank. The market value ofthe pledged securities plus the federal deposit insurance must at all times equal the amount of deposit with the fiscal agent.

At June 30, 2009 the District has unrestricted cash and cash equivalents (book balances) totaling $26,883.

Note #3 RESTRICTED ASSETS

Restricted assets consist ofthe following, $17,767 fi-om the State of Louisiana regarding the building and land acquision and $94,350 restricted for the use ofthe Stragific Master Plan ofthe parish, which will be used as matching funds when the amount raised from business and individuals reaches approximately $150,000.

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(Continued)

Note #4 RECEIVABLES

The following is a summary of receivables at Jime 30, 2009:

Greater Baton Rouge Chamber $4,698 State of Louisiana 29.553

Total $34.251

Note #5 CAPITAL ASSETS

Capital assets and depreciation activity as of and for the year ended June 30, 2009 is as follows:

Balance Balance Govemmental Activifies June 30.2008 Addifions Deletions June 30.2009

Office Equipment 7.572 2.886 0 10.458

Total $ 7.572 $2.886 J 0 $10.458

Less accumulated depreciation:

Office Equipment 2.250 2.091 ^Ob 4.341

Total $ 2.250 $2.091 -0- $ 4.341

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(Continued)

Note #6 LITIGATION AND CLAIMS

The District is not involved in litigation at June 30, 2009.

Note #7 BOARD MEMBERS PER DIEM

The board members are not paid per diem nor compensation for their service.

Note #8 RELATED PARTY TRANSACTIONS

There are no related party transactions that require disclosure.

Note #9 RISK MANAGEMENT

The East Feliciana Parish Economic Development District is exposed to various risks of loss including injuries to criminal or property damage, theft and other possible related claims. The District purchases commercial insurance to minimize this risk of loss from these types of occurrences.

Note # 10 COMMITMENTS

On April 18,2008 the EFPEDD entered into a Cooperafive Endeavor Agreement with the Louisiana Department of Economic Development and Superior Homes of Louisiana LLC.

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(Continued)

Note #10 COMMITMENTS (Continued)

The purpose of this Loan (which may be converted into a Grant, provided Superior Homes of Louisiana LLC's employment obligations are met and sufficient credits are applied to the Loan) is to provide funding for the costs in connection with the acquisition of property, building renovation and constmction, and other site preparation and improvements by the East Feliciana Parish Economic Development District, the sponsoring entity, in order to serve and accommodate the location ofthe improvements are to be leased by the East Feliciana Parish Economic Development District to the Superior Homes of Louisiana LLC for its business operations. The Superior Homes of Louisiana LLC will be manufacturing residential modular homes to be sold to developers, contractors and dealers. The Superior Homes of Louisiana LLC also plans to enter new markets through the constmction of commercial office buildings.

On July 28, 2009 the land and building was purchased for $700,000 with another $200,000 advanced for repairs and renovations on the building.

The EFPEDD and Superior Homes of Louisiana LLC will be required to repay the Loan Award amount, being the principal sum of $900,000, which shall bear interest at the current U.S. Treasury Rate for 10-year bank financing, being 3.81% per annum from the date of January 1, 2009, unfil fully paid, said loan to be repaid in ten (10) annual payment of principal and interest each being in the sum of $122,127.57, beginning January 15, 2010, and one such payment being due and payable on the same day of each succeeding calendar year thereafter until all are fully paid.

NOTE #11 SUBSEQUENT EVENTS

On October 30, 2009 the EFPEDD and Superior Homes of Louisiana LLC were notified that they were in a noncompliance status with regards to the Economic Development Award Program Loan.

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(Continued)

Note #11 SUBSEQUENT EVENTS (Continued)

The EFPEDD default ofthe loan agreement raises substantial doubt of its ability to continue as a going concem. EFPEDD is currently working with the State to resolve this matter.

In Febmary 2010 the EFPEDD placed the property on the market to be sold.

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REQUIRED SUPPLEMENTAL INFORMATION

EAST FELICIANA PARISH ECONOMIC DEVELOPMENT DISTRICT GENERAL FUND

BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED JUNE 30, 2O09

REVENUES State of Louisiana-Appropreation Baton Rouge Chamber

TOTAL REVENUES

Final

$47,500 $18,794

66,294

Actual

$47,500 $18,794

66,294

Variance with Final Budge Favorable

(Unfavorable)

$0 $0

0

EXPENDITURES General Govemment:

Current operating: Marketing AFM Expenses Office supplies Web site Donations Meetings Meals

Miscellaneous Postage Printing Professional contracts Rent Promotionsl Repairs & maintenance Recruiting Travel Professional fees Utilities

TOTAL EXPENDITURES

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES

EXCESS (DIFFICENCY) OF REVENUES OVER EXPENDITURES

FUND BALANCES

Beginning of year l_

End of year

2,500 0

2,000 110

0 1,200

0 365 425

2,000 20,000

800 2,600 1,000 3,500 9,000

800 1,200

0 2,928 1,192

109 3,500 1,389

0 603 410

1,895 23,351

1,200 0

924 0

5,242 800

1,200

47,500

18,794

18,794

31,885

44,743

21,551

21,551

31,885

2,500 (2,928)

808 1

(3,500) (189)

0 (238)

15 105

(3,351) (400)

2,600 76

3,500 3,758

0 0

2.757

2,757

2,757

$50,679 $53,436 $2,757


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SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30. 20Q9

We have audited the fmancial statements ofthe governmental activities, business-type activities, each major fund and the remaining fund information ofthe East Feliciana Parish Economic Development District, which collectively comprise the basic fmancial statements as listed in the table of contents, as of and for the year ended June 30,2009, and have issued our report thereon dated May 31,2010. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Our audit ofthe fmancial statements as of June 30,2009, resulted in an unqualified opinion.

Section 1 Summary of Auditor's Reports

1. Report on Compliance and Intemal Control Material to the Financial Statements

Compliance Material Weakness No Control Deficiency(ies) No

Intemal Control Material Weakness No Control Deficiency(ies) No

2. Federal Awards

Compliance Material Weakness No Control Deficiency(ies) No

Intemal Control Material Weakness No

Control Deficiency(ies) No

Section H Financial Statement Findings

2009-1 Compliance with Audit Law

Criteria: Under Louisiana Revised Statute 24:513, the EFPEDD is required to perform an audit annually to be submitted to the Louisiana Legislative Auditor no later than six months following the close of its fiscal year on June 30'*'.

Condition/Effect: EFPEDD did not submit its annual audit report by December 31,2009.

Recommendation: EFPEDD should make every effort to comply with the audit law. Towards this end, EFPEDD should engage an auditor before year end.

Questioned Costs: There is no cost related to this recommendation unless additional help is obtained. The amount ofthe obligation and the annual expense cannot be determined at this time.

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SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30. 2009

2009 - 2 - Compliance with the cooperative endeavor agreement.

The East Feliciana Parish Economic Development District and Superior Homes of Louisiana LLC were placed in default on October 30, 2009 by the Louisiana Economic Development Corporation. Actually the defaulting party was Superior Homes of Louisiana LLC as they failed to live up to the cooperative endeavor agreement to open a mobile home constmction facility in Clinton, Louisiana. Superior Homes of Louisiana LLC blames the economic conditions in the State of Louisiana for their defaulting on the agreement.

Condition/Effect: EFPEDD was not financially liable to fulfill its obligation regarding the cooperative endeavor agreement. EFPEDD offered the land and building for sale with a real estate agent so as to pay the State of Louisiana the $900,000 loan.

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MANAGEMENT'S CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30.2009

Section I Internal Control and Compliance Material to ttie Financial Statements

2009-1 Compliance with Audit Law

Recommendation: EFPEDD should make every effort to comply with the audit law. Towards this end, it may be necessary to consider additional help following the close ofthe fiscal year.

Response: Please refer to management's response in the schedule of findings and questioned costs.

2009-2 Compliance with the Cooperative Endeavor Agreement

Recommendation: Either sell the land and building or have Louisiana Economic Development file suit against Superior Homes of Louisiana LLC.

Response: EFPEDD's board of Directors are trying to work this problem out with Louisiana Economic Development Corporation.

I

Section 11 Internal Control and Compliance Material to Federal Awards

N/A

Section III Management Letter

N/A •

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SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED JUNE 30. 2Q09

There were no findings reported in the audit report for the year ended June 30,2008, because the report was a compilation report.

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east feliciana parish economic development district...2010 sep 30 ph v\^^ east feliciana parish...

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