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VILLAGE OF LISBON Lisbon, Louisiana

Annual Financial Statements

As of and for the Year Ended December 31, 2009

Under 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 ofthe Legislative Auditor and, v̂ rhere appropriate, at the office of the parish clerk of court

Release Date l 0 / .<)//P H

VILLAGE OF LISBON

Lisbon, Louisiana

Annual Financial Statements

As of and for the Year Ended December 31, 2009

C O N T E N T S

Accountant's Compilation Report

Basic Financial Statements:

Govemment-Wide Financial Statements:

Statement of Net Assets

Statement of Activities

Fund Financial Statements:

Govemmental Fund:

Balance Sheet

Statement of Revenues, Expenditures and Changes in Fund Balances

Business-Type Activities:

Statement of Net Assets

Statement of Revenues, Expenses, and Changes in Net Assets

Statement of Cash Flows

Notes to the Financial Statements

Statement Page No.

3

D

F

G

10

11

12

VILLAGE OF LISBON Lisbon, Louisiana Annual Financial Statements As of and for the Year Ended December 31, 2009

C O N T E N T S (Contd.)

Schedule Page No.

Supplemental Information Schedules:

Schedule of Per Diem Paid Aldermen 1 21

Status of Prior Year Findings 2 22

Current Year Findings and Corrective Action Plan 3 23

M. CARLEEN DUMAS Certified Public Accountant

369 Donaldson Road. Calhoun, Louisiana. Telephone 318/644-5726

Accountant's Compilation Report

MAYOR AND BOARD OF ALDERMEN VILLAGE OF LISBON Lisbon, Louisiana

I have compiled the accompanying basic financial statements and supplemental information schedules, as hsted inthe foregoing table of contents, ofthe Village of Lisbon as of December 31, 2009, and for the year then ended, in accordance with standards estab]ishedby Statements on Standards/or Accounting and Review Services issued by the American Institute of Certified Pubhc Accountants.

A compilation is hmited to presenting in the form of financial statements and schedules, infomiation that is the representation of management. I have not audited or reviewed the accompanying financial statements and schedules and, accordingly, do not express an opinion or any form of assurance on them.

Management ofthe village did not adopt a budget for the General Fund, therefore, the budgetary comparison schedule which is supplemental information required by GASB is not included in the acconpanying supplemental information schedules. Additionally, management has elected to omit Management's Discussion and Analysis which is also supplemental information required by GASB. If the omitted uiformation were included in the financial statements, they might influence the user's conclusions about the village's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

/s Carleen Dumas Calhoun, Louisiana Febmary 16, 2010

Member ofthe American Institute of Certified Public Accountants Member ofthe Society of Louisiana of Certified PubUc Accountants

BASIC FINANCIAL STATEMENTS


STATEMENT OF NET ASSETS December 31, 2009

Statement A

GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES TOTAL

ASSETS Cash Investments Receivables (net of allowances for uncollectibles) Other assets Capital assets (net)

TOTAL ASSETS

LIABILITIES Customer deposits

NET ASSETS Invested in capital assets Unrestricted

TOTAL NET ASSETS

$9,444 61,225

14,038

84,707

NONE

14,038 70,669

$84,707

$29,838

2,415 10

10,828

43,091

10,983

10,828 21,280

$32,108

$39,282 61,225

2,415 10

24,866

127,798

10,983

24,866 91,949

$116,815

See accompanying notes and accountant's compilation report.

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BALANCE SHEET - GOVERNMENTAL FUND December 31, 2009

Statement C

ASSETS Cash Investments

TOTAL ASSETS

LLVBILITIES AND FUND BALANCES Liabihties Fund balance - unreserved

TOTAL LIABILITIES AND FUND BALANCES

GENERAL FUND

$9,444 61,225

$70,669

NONE 70,669

$70,669

Reconciliation ofthe Balance Sheet of Govemmental Fund To the Statement of Net Assets:

Fund balance - unreserved - General Fund Amount reported for net assets of govemmental activities

in the Statement of Net Assets (Statement A) is different because: Capital assets used in govemmental activities are not

financial resources and therefore are not reported in the fund

Net assets of govemmental activities (Statement A)

$70,669

14,038 $84,707


Statement D VILLAGE OF LISBON

Lisbon, Louisiana

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUND

For the Year Ended December 31, 2009

GENERAL FUND

REVENUES Franchise taxes $2,899 Licenses and permits 5,393 Rent 4,000 Royalties 333 Investment earnings 1̂ 450

Total revenues 14,075

EXPENDITURES General govemment: Current:

Personal services Operating services Materials and suppHes Other

Total expenditures

NET CHANGE IN FUND BALANCE

FUND BALANCE AT BEGINNING OF YEAR

FUND BALANCE AT END OF YEAR

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Fund to the Statement of Activities:

Net change in fund balance - General Fund $679 Amount reported for govemmental activities in the

Statement of Activities (Statement B) are different because: Govemmental funds report capital outlays as expendimres. However, in the statement of activities, the cost of those assets is allocated over their estimated usefiil lives as depreciation expense. This is the amount by which depreciation expense exceeded capital outlays in the current period. (1,862)

Change in net assets of govemmental activities (Statement B) ($1J83)


1,722 11,366

303 5

13,396

679

69,990

$70,669


STATEMENT OF NET ASSETS - BUSINESS-TYPE ACTIVITIES December 31, 2009

Statement E

ASSETS Current assets:

Cash Accounts receivable (net of allowance for doubtfiil accounts) Other

Total current assets Noncurrent assets:

Capital assets (net of accumulated depreciation) Total assets

LIABILITIES Current habihties - customer deposits

NET ASSETS Invested in capital assets Unrestricted

Total net assets

Water Enterprise

Fund

$29,838 2,415

10 32,263

10,828 43,091

10,983

10,828 21,280

$32,108


Statement F


STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - BUSINESS-TYPE ACTIVITIES


Water Enterprise

Fund

OPERATING REVENUES Water sales

OPERATING EXPENSES Office expense Postage Maintenance and repairs Utihties Materials and supphes Insurance Salaries and payroll taxes Dues and subscriptions Telephone Depreciation Other operating expenses

Total operatuig expenses

OPERATING INCOME (Loss)

NON-OPERATING REVENUES (Expenses) Interest eamed on deposits State grant

Total non-operating revenues

CHANGE IN NET ASSETS

NET ASSETS - BEGINNING

NET ASSETS - ENDING

$36,888

616 596

14,027 3,591 6,089 2,845

20,378 275 136 851

1,044 50,448

(13,560)

25,000 25,008

11,448

20,660

$32,108



STATEMENT OF CASH FLOWS - BUSINESS-TYPE ACTIVITIES For the Year Ended December 31, 2009

Statement G

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Customer deposit receipts, net Payments to suppliers Payments to employees

Net cash provided by operating activities

CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES

State grant Purchase of capital assets

Net cash provided by capital fmancing activities

CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings on bank deposits

NET INCREASE IN CASH

CASH AT BEGINNING OF YEAR

CASH AT END OF YEAR

Reconciliation of Operating Income (Loss) to Net Cash Used by Operating Activities

Operating Loss Adjustments:

Depreciation Decrease in accounts receivable Decrease in customer deposits

Total adjustments Net cash provided by operating activities

Water Enterprise

Fund

$37,203 (75)

(32,253) (17,344) (12,469)

25,000 (3.575) 21,425

8,964

20,874

$29,838

($13,560)

851 315

(za 1,091

See accountant's compilation report and accompanying notes.


Notes to the Financial Statements As of and for the Year Ended December 31, 2009

INTRODUCTION

The Village of Lisbon was incorporated under the provisions ofthe Lawrason Act. The village is govemed by the mayor-board of aldermen form of govemment. The mayor and three aldermen serve four-year terms which expire on December 31, 2009. The village has three part-time employees.

GASB Statement No. 14, r/?ei?eporn'«^£'«?;(y, estabhshed criteria for determining the govemmental reporting entity and component units that should be included within the reporting entity. Under provisions of this Statement, the Village of Lisbon is considered a primary govemment, since it is a special purpose govenmient that has a separately elected goveming body, is legally separate, and is fiscally independent of other state and local govemments. As used in GASB Statement No. 14, fiscally independent means that the municipahty may, without the approval or consent of another govemmental entity, determine or modify its own budget, levy its own taxes or set rates or charges, and issue bonded debt. The village has no component units.

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Government-Wide and Fund Financial Statements

The govemment-wide financial statements (i.e., the statement of net assets and the statement of activities) report infomiation on all ofthe activities ofthe Village of Lisbon. Govemmental activities, which normally are supported by taxes and intergovemmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given fimction or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular Sanction or segment. Taxes, hcenses, and other items not properly included among program revenues are reported instead as general revenues.

See accountant's compilation report. -12-

VILLAGE OF LISBON Notes to the Financial Statements

Separate financial statements are provided for govemmental funds and business-type activities fiinds. All individual govemmental fiinds and individual enterprise funds are reported as separate columns in the fimd financial statements.

B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The govemment-wide financial statements are reported using the economic resources measurement focus and the accmal basis of accounting, as are the business-type fund financial statements. Revenues are recorded when eamed and expenses are recorded when a habihty is incurred, regardless ofthe timing of related cash flows. Grants and similar items are recognized as revenue as soon as all ehgibihty requirements imposed by the provider have been met.

Govemmental fiind fmancial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay habilities ofthe current period. For this purpose, revenues are considered to be available if they are collected within 60 days ofthe end ofthe current fiscal period. Expenditures generally are recorded when a habihty is incurred, as under accmal accounting.

Franchise taxes, licenses and permits, and mterest associated with the current fiscal period are all considered to be susceptible to accmal and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the village.

The Village of Lisbon reports the following govemmental fiind:

General Fund

The General fimd is the general operating fund ofthe village and accounts for all financial resources of the general govemment.

The Village of Lisbon reports the following business-type activity fimd:

Water System Enterprise Fund

The Water System Enterprise fimd accounts for the operations ofthe village water system.



Private-sector standards of accounting and financial reporting issued prior to December 1,1989, generally are followed inthe govemment-wide and business-type activities fimd financial statements to the extent that those standards do not conflict with or contradict guidance ofthe Govemmental Accounting Standards Board. Govemments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise fiinds, subject to the same hmitation. The village has elected not to follow subsequent private-sector guidance.

As a general mle, the effect of interfiind activity is ehmmated from the govemment-wide fmancial statements.

Amounts reported as program revenues include charges to customers for goods, services, or privileges provided and operating grants. General revenues include franchise taxes, occupational hcenses, investment income, and other miscellaneous revenues.

Business-type activities fiinds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and dehvering goods in connection with the fiind's ongomg operations. The Water System Enterprise Fund's operating revenues consist of charges for water sales. Operating expenses for enterprise funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting these definitions are reported as nonoperating revenues and expenses.

C, Deposits and Investments

Cash includes amounts in interest-bearmg demand deposits. State law allows the village to invest m collateralized certificates of deposits, govemment-backed securities, commercial paper, the state sponsored investment pool, and mutual funds consisting solely of govemment-backed securities. If the original maturities 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. At December 31, 2009, the village's investments consist of nonnegotiable certificates of deposits with original maturities that exceed 90 days that are reported in the accompanying financial statements at cost.

D. Receivables

All receivables are generally shown net of an allowance for uncollectible amounts. These statements contain no provision for uncollectible accounts. The village is of the opinion that such an allowance would be immaterial in relation to the financial statements taken as a whole.



E. Capital Assets

Capital assets, which include the original water system and inprovements, land, buildings, and equipment are reported in the appUcable govemmental or business-type activities columns in the govemment-wide financial statements. Capital assets are capitalized at historical cost or estimated cost. Approximately 98 percent ofthe village's capital assets have been capitalized at cost and the remaining 2 percent have been capitalized at estimated cost based on the historical cost of sunilar assets. The Village of Lisbon maintains a threshold level of $1,000 or more for capitalizmg capital assets. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset's life are not capitalized.

All capital assets, other than land, are depreciated using the straight-hne method over the following useflil hves:

Estimated Lives

Infrastmcture - water system and unprovements 25 years Buildings 40 years Equipment 5-15 years

F. Fund Equity

In the fimd 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 a specific purpose. Designations of fiind balance represent tentative management plans that are subject to change. At December 31, 2009, the village's govemmental fund balance was unreserved and undesignated.

G. Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assunptions that affect certain reported amounts of assets and liabihties, disclosures, and revenues, expenditures, and expenses during the reporting period. Actual resuhs could differ from those estimates.



STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

Budget Information

The Village of Lisbon did not adopt a budget for the General Fund for the year ended December 31,2009.

3. DEPOSITS IN FINANCIAL INSTITUTIONS

At December 31, 2009, the village has cash and investments (book balances) as follows:

Interest bearing checking accounts Investments - certificates of deposit

Total

$39,282 61,225

•'̂ 100 507

These deposits are stated at cost, which approximates market. Under state law, these deposits, or the resulting bank balances, must be secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank. The market value ofthe pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agent. These securities are held in the name ofthe pledging fiscal agent bank m a holding or custodial bank that is mutually acceptable to both parties. At December 31, 2009, the Village of Lisbon had $102,457 in deposits (collected bank balances). These deposits are fully secured from risk by federal deposit insurance.

4. RECEIVABLES

The following is a summary of receivables at December 31, 2009:

Water General Enterprise

Fund Fund Total

Accounts Allowance for doubtfiil accounts

Total

CAPITAL ASSETS

$2,415 $2,415 NONE NONE NONE

NONE $2,415 $2,415

Capital assets and depreciation activity as of and for the year ended December 31,2009, is as follows:


VILLAGE OF LISBON Notes to the Fmancial Statements

Balance at Balance at January 1, December 31,

2009 Increases Decreases 2009 Govemmental activities: Capital assets not being

depreciated - land Capital assets being

depreciated: Buildings Equipment Total capital assets being

depreciated Less accumulated depreciation

for: Buildings Equipment

Total accumulated depreciation

Total assets bemg depreciated. net

Business-type activities: Capital assets being

depreciated: Water system and

improvements Equipment

Total capital assets being depreciated

Less accumulated depreciation for: Water system and

improvements Equipment

Total accumulated depreciation

Total assets being depreciated. net

$1,000

$77,500 5,898

$83,398

62,600 5,898

68,498

$14,900

$100,588 3,063

103,651

93,159 2,388

95,547

$8,104

NONE

1,862

1,862

($1,862)

$3,575

3,575

761 90

851

$2,724

=

NONE

NONE

NONE = • . =

NONE

NONE

NONE

$1,000

$77,500 5,898

$83,398

64,462 5,898

70,360

$13,038

$104,163 3,063

107,226

93,920 2,478

96,398

$10,828

See accountant's compilation report. 17-


Depreciation expense of $1,862 for the year ended December 31, 2009 was charged to the general govemment govemmental fiinction and $851 was charged to business-type activities.

6. RISK MANAGEMENT

The village purchases commercial insurance to reduce the risk of loss resulting from property damage or habihty claims. There have been no significant reductions in insurance coverage from coverage in the prior year. Settlements have not exceeded insurance coverage m any ofthe past three fiscal years.

See accountant's compilation report.

SUPPLEMENTAL INFORMATION SCHEDULES



SUPPLEMENTAL INFORMATION SCHEDULES As of and For the Year Ended December 31, 2009

COMPENSATION PAID ALDERMEN

The schedule of per diempaid aldermen is presented in compliance with House Concurrent Resolution No. 54 ofthe 1979 Session ofthe Louisiana Legislature. Compensation ofthe aldermen is included in salary expense ofthe General Fund. In accordance with Louisiana Revised Statute 33:405, the aldermen receive $350 each year.

STATUS OF PRIOR YEAR FINDINGS

The follow-up and corrective action taken on all prior year fmdings is presented m Schedule 2.

CURRENT YEAR FINDINGS AND CORRECTIVE ACTION PLAN

The corrective action plan for current year findings is presented in Schedule 3.


Schedule I VILLAGE OF LISBON

Lisbon, Louisiana

Schedule of Per Diem Paid Aldermen For the Year Ended December 31, 2009

Jerry Clements $350 Marilyn Myers 350 Andy Roberts 350

Total $1,050

See accountant's compilation report. -21

Schedule 2 VILLAGE OF LISBON

Lisbon, Louisiana

STATUS OF PRIOR YEAR FINDINGS For the Year Ended December 31, 2009

Reference Number

N/A

Fiscal Year

Finding Initially

Occurred

2007

Description of Finding

Budgeted expenditures exceeded estimated funds available.

Corrective Action Taken

No "

Planned Corrective

Action

See Current Year Findines.

See accountant's compilation report. •22-

Schedule 3 VILLAGE OF LISBON

Lisbon, Louisiana

CURRENT YEAR FINDINGS AND CORRECTIVE ACTION PLAN


Reference Number

N/A

Description of Findmg

The village did not adopt a budget for the General fiind for the year ended December 31,2009.

Corrective Action Planned

For all fiiture years, the village wiU adopt an armual budget for the General Fund.

Name of Contact Person

Wayne Tanner, Mayor

Anticipated Completion

Date

12/31/10


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