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TOWN OF CAMPTI, LOUISIANA
ANNUAL FINANCIAL REPORTJUNE 30,2005
Under provisions of state law, this report is a publicdocument. Acopy of the report has been submitted tothe entity and other appropriate public officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.
Release Date_
Town of Campti, LouisianaFinancial Report
June 30, 2005
T A B L E O F C O N T E N T S
Exhibit PageRequired Supplementary Information
Management's Discussion and Analysis - 1 -4
Independent Auditor's Report - 5-6
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Assets A 9
Statement of Activities B 10
Fund Financial Statements
Governmental Funds
Balance Sheet-Governmental Funds C 12
Reconciliation of the Governmental Funds Balance Sheetto the Statement of Net Assets D 13
Statement of Revenues, Expenditures and Changesin Fund Balances-Governmental Funds E 14
Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balances of theGovernmental Funds to the Statement of Activities F 15
Proprietary Funds
Statement of Net Assets G 16
Statement of Revenues, Expenses and Changesin Net Assets H 17
Statement of Cash Flows I 18
Notes to Financial Statements - 20-32
Town of Campti, LouisianaFinancial Report
June 30, 2005
T A B L E O F C O N T E N T S
Internal Control and Compliance
Report on Internal Control over Financial Reportingand on Compliance and Other Matters Based on anAudit of Financial Statements Performed inAccordance with Government Auditing Standards
Schedule of Prior Year Audit Findings
Schedule of Findings & Questioned Costs
Status of Legislative Auditor's Report Findings
Exhibit Page
J
K
L
M
34-35
36-38
39-44
45
Town of Campti, LouisianaP. O. Box 216
Campti,LA 71411
MANAGEMENT'S DISCUSSION AND ANALYSISfor the Year ended June 30, 2005
The Management's Discussion and Analysis is an element of the reporting model adopted by theGovernmental Accounting Standards Board (GASB) in their Statement No. 34. Certain comparativeinformation is presented to provide an overview of its operations.
Financial Highlights
This annual report consists of a series of financial statements. The Statement of Net Assets and theStatement of Activities provide information about the activities of the Town as a whole and present alonger-term view of the Town's finances. These statements tell how these services were financed in theshort-term as well as what remains for future spending. The Town maintains three funds; twogovernmental funds and a proprietary fund, the water system.
Page 2
A summary of the basic government-wide financial statements is as follows:
Summary of Statement of Net Assets
June 2005 June 2004
ASSETS:
GovernmentalActivities
$ 64,495Current AssetsCapital Assets, Net ofAccumulated Depreciation 110.319
Total Assets
LIABILITIES:
Accounts PayableCustomer DepositsLong Term Debt
Total Liabilities
NET ASSETS:
$174.:
$ 54,4570
10.236
$ 64.693
Invested in Capital Assets,Net of Related Debt $ 110,319
Unrestricted (Deficit) (198)
Business-Type Governmental Business-TypeActivities Total Activities Activities Total
$ 50,385 $ 114,880 $193,172 $ 65,772 $ 258,944
2.200.725 2.311.044 117.878 2.147.731 2.265.609
S2T425T924 $311.050 $2.213.503 $2.524.:
$ 60,643 $ 115,100 $ 91,21125,952 25,952 0
417.289 427.525 34.236
$ 503.884 $ 568.577 $125.447
$1,764,249 $1,874,568 $117,878(17.023) (17,221) 67.725
84,22225,952
445.327
175,43325,952
479.563
$ 555.501 $ 680.948
$1,675,076 $1,792,954(17.074) 50.651
NET ASSETS
Summary of Statement of Activities
Page 3
June 2005 June 2004Governmental
ActivitiesREVENUES:
Program Revenues:TaxesLicenses & PermitsIntergovernmental-
Beer TaxState Grant
Charge for ServicesInterest & MiscellaneousTransfers In
Total Revenues
EXPENSES:
General GovernmentPublic SafetyPublic WorksOperating ExpenseTransfers Out
$116,02159,994
945194,741
9,63320,59621.000
$422.930
$208,77381,470
00
212.082
Business-TypeActivities
$ 00
00
92,60920,528
212.082
$325.219
$ 000
214,99521.000
GovernmentalTotal Activities
$116,02159,994
945194,741102,24241,124
233.082
$748.149
$208,77381,470
0214,995233.082
$180,09841,167
029,32223,2984,027
0
$277.912
$112,65774,730
4000
52.589
Business-TypeActivities
$ 00
0327,241121,954
1,06852.589
$502.852
$ 000
253,1610
Total
$180,09841,167
0356,563145,252
5,09552.589
$780.764
$112,65774,730
400253,16152.589
Total Expenses
Change in Net Assets
$502.325 $235.995 $738.320 $240.376 $253.161 $493.537
Governmental Activities
The Town's assets exceeded its liabilities by $110,121 (net assets) for the year ending June 30, 2005. Thisis a decrease of $75,482 from prior year.
Business Type Activities
The Proprietary Fund, the water system, experienced an operating loss of $77,522 for the year ending June30, 2005. This compares to a $(109,166) loss for the year ended June 30, 2004.
Page 4
General Fund Budgetary Highlights
The Town did not prepare a budget for the 2004/2005 fiscal year.
Economic Factors and Next Year's Budget
The Town has not prepared a budget for 2005/2006 fiscal year.
Contacting the Town
This financial report is designed to provide our citizens, taxpayers, and creditors with a general overviewof the Town's finances and to show the Town's accountability for the money it receives. Any questionsabout this report or requests for additional information may be directed to the Town at P. O. Box 216,Campti,LA 71411.
Johnson, Thomas & CunninghamCertified Public Accountants
321 Bicnville StreetEddie G. Johnson, CPA - A Professional Corporation (1927-1996) Natchitoches, Louisiana 71457
(318) 352-3652Mark D.Thomas, CPA-A Professional Corporation Fax (318) 352-4447Roger M. Cunningham, CPA - A Professional Corporation
INDEPENDENT AUDITOR'S REPORT
The Honorable Donald Davis, Mayorand the Town Council
197 Edenborne StreetCampti, Louisiana, 71411
We were engaged to audit the accompanying financial statements of the governmental activities, thebusiness-type activities, and each major fund information of the Town of Campti, Louisiana, as of andfor the year ended June 30, 2005, which collectively comprise the Town's financial statements as listedin the table of contents. These financial statements are the responsibility of the Town of Campti'smanagement.
We were unable to obtain the supporting documentation for the financial activities of the Town ofCampti, and we were unable to satisfy ourselves as to the financial activities with other auditingprocedures. These financial activities are included in the government-wide financial statements.
Because of the significance of the matters discussed in the preceding paragraph, the scope of our auditwork was not sufficient to enable us to express an opinion; therefore, we do not express an opinion on thefinancial statements referred to in the first paragraph.
In accordance with Government Auditing Standards, we have also issued our report dated June 16, 2006,on our consideration of the Town of Campti's internal control over financial reporting and on our tests ofits compliance with certain provisions of laws, regulations, contracts, grant agreements, and othermatters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing and not to provide an opinion on theinternal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be considered in conjunctionwith this report in considering the results of our audit.
Page 6
The Management's Discussion and Analysis and the other required supplementary information on pages1 through 4 are not a required part of the basic financial statements but are supplementary informationrequired by accounting principles generally accepted in the United States of America. We have appliedcertain limited procedures, which consisted principally of inquiries of management regarding themethods of measurement and presentation of the other required supplementary information. However,we did not audit the information and express no opinion on it.
Johnson. Thomas & CunninghamJohnson, Thomas & Cunningham, CPA's
June 16, 2006Natchitoches, Louisiana
Town of Campti, LouisianaGovernment-Wide Statement of Net Assets
June 30, 2005
Exhibit APage 9
ASSETS:Cash & Cash EquivalentsRevenue ReceivableDue from Other FundsRestricted Assets-
Cash & Cash EquivalentsCapital Assets - Net
Total Assets
LIABILITIES:Accounts PayableAccrued ExpensesDue to Other FundsCustomer DepositsAccrued InterestLong-Term Debt-
Current PortionLong-Term Portion
Total Liabilities
NET ASSETS:Invested in Capital Assets,Net of Related Debt
Unrestricted (Deficit)Total Net Assets
GovernmentalActivities
$ 44,0454,229
16,221
0110.319
$174.814
Business-TypeActivities
$ 26,7054,418
0
19,2622,200,725
$2.251.110
Total
$ 70,7508,647
16,221
19,2622.311.044
$2.425.924
4,75349,704
000
10,2360
64.693
$ 63923,75116,22125,952
845
19,187417,289
$ 503,884
$ 5,39273,45516,22125,952
845
29,423417,289
$ 568,577
$110,319(198)
$1,764,249(17.023)
$1,874,568(17.221)
$1.857.347
See notes to financial statements.
Exhibit BPage 10
Town of Campti, LouisianaGovernment-Wide Statement of Activities
June 30,2005
Activities Expenses
Governmental Activities:General Government $208,773Public Safety 81.470
Total GovernmentalActivities 5290,243
Business-Type Activities:Water/Sewer $214.995
Total Business-TypeActivities
Total Government
$214.995
Program RevenuesFees, Finesand Charges Operatingfor Services Grants
O S 194,7419.633 0
$ 9.633 $ 194.741
$ 92,609 $
$ 92.609 $
Net (Expense) Revenueand Changes in Net Assets
Governmental Business-TypeActivities Activities Total
$ (14,032)(71.837)
0 $ (14,032)_0 (71.837)
_Q $ (85.869)
S (122.386) $ (122.386)
$ (122.386) $ (122.386)
mm srm^nGeneral Revenues:
Taxes-Ad ValoremSales Tax
Licenses & PermitsIntergovernmental:
Beer TaxInterest & MiscellaneousTransfers (Net)
Total General Revenuesand Transfers
Change in Net Assets
Net Assets-Beginning of Year
Net Assets-End of Year
$ (85.869)
$ 10,020106,00159,994
94520,596
(191.082)
$ 6.474
$ (79,395)
189.516
S 1 1 Q 1 2 1
$ (122.386)
$ 000
020,528
191.082
$ 211.610
$ 89,224
1.658.002
s,747.226
$ (208.255'
$ 10,020106,00159,994
94541,124
0
$ 218.084
$ 9,829
1.847,518
S1857347
See notes to financial statements.
Town of Campti, LouisianaBalance Sheet-Governmental Funds
June 30, 2005
Exhibit CPage 12
Major Funds
ASSETS:Cash & Cash EquivalentsRevenue ReceivablesDue from Other Funds
Total Assets
LIABILITIES:
Accounts PayableAccrued Expenses
Total Liabilities
FUND BALANCES:
Unreserved
Total Liabilitiesand Fund Balances
GeneralFund
$44,0454,229
16.221
$ 4,75349.704
$54.457
$10,038
$64t495
LCDBGFund
$0
0
$0
$00
$0
$0
TotalGovernmental
Funds
$44,0454,229
16.221
$64.495
$ 4,75349.704
$54.457
$10.038
$64.495
See notes to financial statements.
Exhibit DPage 13
Town of Campti, LouisianaReconciliation of the Governmental Funds
Balance Sheet to the Statement of Net AssetsJune 30, 2005
Total Fund Balances for the Governmental Funds $ 10,038
Amounts reported for Governmental Activitiesin the Statement of Net Assets are different because:
Capital Assets used in Governmental Activities are notcurrent financial resources and, therefore, are not reportedin the Governmental Funds Balance Sheet-
Capital Assets 208,907Less, Accumulated Depreciation (98,588)
Long-term Liabilities are not due and payable in thecurrent period and, therefore, are not reported in theGovernmental Funds Balance Sheet-
Long-term Debt (10.236)
Total Net Assets of Governmental Activities $110.121
See notes to financial statements.
Exhibit EPage 14
Town of Campti, LouisianaStatement of Revenues, Expenditures and Changes in Fund Balances-
Governmental FundsYear Ended June 30, 2005
Major Funds
REVENUES:Taxes-
Ad ValoremSales Tax
Licenses & PermitsIntergovernmental-
Beer TaxState Grant
Charges for ServicesInterest & Miscellaneous
Total Revenues
EXPENDITURES:General GovernmentPublic SafetyCapital Outlay
Total Expenditures
(Deficiency) of Revenuesover Expenditures
OTHER FINANCING SOURCES:Transfers InTransfers Out
Total Other Financing
(Deficiency) of Revenues and OtherSources over Expendituresand Other Uses
Fund Balance-Beginning of Year
Fund Balance-End of Year
GeneralFund
$ (24.695)
$ 21,000(68,141)
$(47,141)
LCDBGFund
0
0
TotalGovernmental
Funds
$ 10,020106,00159,994
94550,8009,63320.596
$257.989
$ 000
0143,941
00
$143.941
$ 10,020106,00159,994
945194,7419,63320.596
$401.930
$206,49476,190
0$282,684
$ 00
143.941$143.941
$206,49476,190143.941$426.625
$ (24.695)
; 21,000(68.141)(47.141)
See notes to financial statements.
Exhibit FPage 15
Town of Campti, LouisianaReconciliation of the Statement of Revenues, Expendituresand Changes in Fund Balances of the Governmental Funds
to the Statement of Activitiesfor the Year Ended June 30, 2005
Net Change in Fund Balance-Governmental Funds $(71,836)
Amounts reported for Governmental Activitiesin the Statement of Activities are different because:
Depreciation expense on capital assets is reportedin the Government-wide financial statements, butthey do not require the use of current financialresources and are not reported in the Fund FinancialStatements. Current year depreciation expense is
Total Change in Net Assets
See notes to financial statements.
Town of Campti, LouisianaStatement of Net Assets
Proprietary Fund-Water & Sewer FundYear Ended June 30, 2005
Exhibit GPage 16
ASSETS:Current Assets-
Cash & Cash EquivalentsRevenue Receivable
Total Current Assets
Restricted Assets-Cash & Cash Equivalents
Total Restricted Assets
Capital Assets, Net ofAccumulated Depreciation
Total Capital Assets
Total Assets
LIABILITIES:Current Liabilities-
Accounts PayableAccrued ExpensesDue to General Fund
Total Current Liabilities
Current Liabilities Payable from Restricted Assets-Customer DepositsCurrent Maturity of Long-Term DebtAccrued Interest
Total Current Liabilities Payablefrom Restricted Assets
Non-Current Liabilities-Long-Term Debt
Total Liabilities
NET ASSETS:Invested in Capital Assets, Net of Related DebtUnrestricted (Deficit)
Total Net Assets
$ 26,7054.418
$ 31.123
$ 19.262$ 19.262
$2.200.725$2.200.725
$ 63923,75116.221
$ 40.611
$ 25,95219,187
845
$ 45.984
$ 417.289
$ 503.884
$1,764,249(17.023)
See notes to financial statements.
Town of Campti, LouisianaStatement of Revenues, Expenses and Changes in Net Assets
Proprietary Fund-Water & Sewer FundYear Ended June 30, 2005
Exhibit HPage 17
OPERATING REVENUES:Charges for Services-
Water/SewerConnection FeesMiscellaneous
Total Operating Revenues
OPERATING EXPENSES:DepreciationEquipment ExpenseMiscellaneousOperations & MaintenanceOffice Supplies, Postage & PrintingRetirementSalariesTaxes-PayrollTruck Maintenance & OperationsUtilities & Phone
Total Operating Expenses
Loss from Operations
NON-OPERATING REVENUES (EXPENSES):Loss on Disposal of AssetInterest IncomeInterest Expense
Total Non-operating Revenues (Expenses)
Net Loss Before Contributions & Transfers
TRANSFERS:Transfers InTransfers Out
Total Transfers
Change in Net Assets
Net Assets-Beginning of Year
Net Assets-End of Year
$ 91,4891,120
20.433S 113.042
$ 73,6814,7684,303
17,040774
9,38259,742
1,6371,025
22.515$ 190.564
$ (77.522)
$ (5,323)95
09.108)S (24.336-)
$ (101.858)
212,082(21.000)191.082
5 89,224
1.658.002
See notes to financial statements.
Town of Campti, LouisianaStatement of Cash Flows
Proprietary Fund-Utility FundYear Ended June 30, 2005
Exhibit IPage 18
$ 68,141(21,000)
$ 47.141
95
Cash Flows from Operating Activities:Cash Received from CustomersCash Payments to SuppliersCash Payments to Employees
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non-Capital Financing Activities:Operating Transfers InOperating Transfers Out
Net Cash Provided (Used) byNon-Capital Financing Activities
Cash Flows from Capital Financing Activities:Principal PaymentsInterest PaidChange in Fixed Assets
Net Cash (Used) by Capital Financing Activities
Cash Flows from Investing Activities:Interest Received
Net Cash Provided by Investing Activities
Net Decrease in Cash
Cash-Beginning of Year
Cash-End of Year
Reconciliation of Operating Loss to CashUsed by Operating Activities:Operating LossDepreciation(Increase) Decrease to Accounts ReceivableIncrease (Decrease) to Accounts PayableIncrease (Decrease) to Accrued Liabilities
Net Cash Provided (Used) by Operating Activities
Noncash, investing, capital and financing activities:
During the past year, the Water & Sewer fund received capital assets with a net value of $143,941 from theLCDBG fund.
95
$ (77,522)73,68110,183
(22,836)(6.505)
See notes to financial statements.
Page 20
Town of Campti, LouisianaNotes to Financial Statements
June 30,2005
Introduction:
The financial statements of the Town of Campti have been prepared in conformity with generallyaccepted accounting principles (GAAP) as applied to government units. The GovernmentalAccounting Standards Board (GASB) is the accepted standard-setting body for establishinggovernmental accounting and financial reporting principles. The financial statements of the Town ofCampti, Louisiana are prepared in accordance with generally accepted accounting principles(GAAP). The Town's reporting entity applies all relevant Governmental Accounting StandardsBoard (GASB) pronouncements. Proprietary funds and similar component units apply FinancialAccounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB)opinions issued on or before November 30, 1989, unless the pronouncements conflict with orcontradict GASB pronouncements, in which case GASB prevails. The more significant of theTown's accounting policies are described below.
1. Summary of Significant Accounting Policies:
A. REPORTING ENTITY-
The Town is the basic level of government which has financial accountability and control overall activities related to the Town's operations and services provided. The Town is not includedin any other governmental "reporting entity" as defined by GASB pronouncements, since theTown Mayor and Council members are elected by the public and have decision making authorityto levy taxes, the power to designate management, the ability to significantly influenceoperations and primary accountability for fiscal matters. In addition, there are no componentunits as defined in Governmental Accounting Standards Board Statement 14, which are includedin the Town's reporting entity.
The financial statements of the Town of Campti, Louisiana are prepared in accordance withgenerally accepted accounting principles (GAAP). The Town of Campti, Louisiana's reportingentity applies all relevant Governmental Accounting Standards Board (GASB) pronouncements.Proprietary funds apply Financial Accounting Standards Board (FASB) pronouncements andAccounting Principles Board (APB) opinions issued on or before November 30, 1989, unless thepronouncements conflict with or contradict GASB pronouncements, in which case GASBprevails.
B. BASIS OF PRESENTATION-
Govemment-Wide Financial Statements (GWFS)
The Statement of Net Assets and Statement of Activities report information about the reportinggovernment as a whole. They include all funds of the reporting entity. Governmental activitiesgenerally are financed through taxes, intergovernmental revenues, and other non-exchangerevenues. Business-type activities are financed in whole or in part by fees charged to externalparties for goods or services.
Page 21
Town of Campti, LouisianaNotes to Financial Statements
June 30, 2005
The Statement of Activities presents a comparison between direct expenses and programrevenues for each function of the Town's governmental activities. Direct expenses are those thatare specifically associated with a program or function. Program revenues include (a) fees andcharges paid by the recipient for goods or services offered by the program, and (b) grants andcontributions that are restricted to meeting the operational or capital requirements of a particularprogram. Revenues that are not classified as program revenues, including all taxes, are presentedas general revenues.
C. FUND ACCOUNTING-
The accounts of the Town are organized on the basis of funds. A fund is an independent fiscaland accounting entity with a separate set of self-balancing accounts. Fund accounting segregatesfunds according to their intended purpose and is used to aid management in demonstratingcompliance with finance-related legal and contractual provisions. The minimum number offunds maintained is consistent with legal and managerial requirements.
The Town maintains two funds. They are categorized as a governmental fund and a proprietaryfund. The emphasis on fund financial statements is on major governmental and enterprise funds;each displayed in a separate column. A fund is considered major if it is the primary operatingfund of the entity or meets the following criteria (the Town considers all of its funds to bemajor):
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmentalor enterprise fund are at least 10 percent of the corresponding total for all funds of thatcategory or type; and
b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental orenterprise fund are at least 5 percent of the corresponding total for all governmental andenterprise funds combined.
The major funds of the Town are described below:
Governmental Funds-
General Fund
The General Fund is the general operating fund of the Town. It is used to account for allfinancial resources except those required to be accounted for in another fund.
LCDBG Fund
The Lousisiana Community Development Block Grant Funds are used to account for allfinancial resources used in the improvements to the Town's Water/Sewer System.
Page 22
Town of Campti, LouisianaNotes to Financial Statements
June 30, 2005
Proprietary Fund-
Enterprise Fund
The enterprise funds are used to account for operations (a) that are financed and operated ina manner similar to private business enterprises where the intent of the governing body isthat the costs (expenses, including depreciation) of providing goods or services to the generalpublic on a continuing basis be financed or recovered primarily through user charges; or (b)where the governing body has decided that periodic determination of revenues earned,expenses incurred, and/or net income is appropriate for capital maintenance, public policy,management control, accountability, or other purposes.
D. MEASUREMENT FOCUS/BASIS OF ACCOUNTING-
Basis of accounting refers to when revenues or expenditures/expenses are recognized in theaccounts and reported in the financial statements. It relates to the timing of the measurementsmade regardless of the measurement focus applied.
Accrual Basis - Government-Wide Financial Statements (GWFS)
The Statement of Net Assets and the Statement of Activities display information about the Townas a whole. Both of these statements have been prepared using the economic measurement focusand the accrual basis of accounting. Revenues, expenses, gains, losses, assets, and liabilitiesresulting from exchange and exchange-like transactions are recognized when the exchange takesplace.
Modified Accrual Basis - Fund Financial Statements (FFS)
The accounting and financial reporting treatment applied to a fund is determined by itsmeasurement focus. Governmental fund types use the flow of current financial resourcesmeasurement focus and the modified accrual basis of accounting. Under the modified accrualbasis of accounting, revenues are recorded when susceptible to accrual; i.e., when they are bothmeasurable and available. "Measurable" means the amount of the transaction can be determinedand "available" means collectible within the current period or soon enough thereafter to payliabilities of the current period. The Town considers all revenues "available" if they arecollected within 60 days after year-end. Expenditures are generally recorded under the modifiedaccrual basis of accounting when the related liability is incurred. The exceptions to this generalrule are that (1) unmatured principal and interest on long-term debt, if any, are recorded whendue and (2) claims and judgments and compensated absences are recorded as expenditures whenpaid with expendable available financial resources.
Page 23
Town of Campti, LouisianaNotes to Financial Statements
June 30, 2005
E. CASH AND INTEREST-BEARING DEPOS1TS-
For purposes of the Statement of Net Assets, cash and interest-bearing deposits include alldemand accounts and savings accounts of the Town.
F. CAPITAL ASSETS-
Capital assets, which include property, plant, and equipment, are reported in the governmentalactivities column in the government-wide financial statements. Capital assets are capitalized athistorical cost or estimated cost if historical cost is not available. Donated assets are recorded ascapital assets at their estimated fair market value at the date of donation. The Town maintains athreshold level of $2,500 or more for capitalizing capital assets.
The costs of normal maintenance and repairs that do not add to the value of that asset ormaterially extend the life of that asset are not capitalized.
Depreciation of all exhaustible capital assets is recorded as an expense in the Statement ofActivities, with accumulated depreciation reflected in the Statement of Net Assets. Depreciationis provided over the assets' estimated useful lives using the straight-line method of depreciation.The range of useful lives by type of asset is as follows:
Buildings and improvements 40 yearsEquipment and vehicles 5-10 yearsUtility system and improvements 40 years
In the fund financial statements, capital assets used in governmental fund operations areaccounted for as capital outlay expenditures of the governmental fund upon acquisition. Capitalassets used in proprietary fund operations are accounted for the same as in the government-widestatements.
G. RESTRICTED ASSETS-
Restricted assets include cash, interest-bearing deposits, and investments of the proprietary fundthat are legally restricted as to their use. The restricted assets are related to utility bond covenantaccounts and customer deposits.
H. COMPENSATED ABSENCES-
There is no formal leave policy for the Town; therefore, no entry is made to record compensatedabsences.
Page 24Town of Campti, Louisiana
Notes to Financial StatementsJune 30, 2005
I. EQUITY CLASSIFICATIONS-
In the government-wide statements, equity is classified as net assets and displayed in threecomponents:
a. Invested in capital assets, net of related debt—Consists of capital assets including restrictedcapital assets, net of accumulated depreciation and reduced by the outstanding balances ofany bonds, mortgages, notes, or other borrowings that are attributable to the acquisition,construction, or improvement of those assets.
b. Restricted net assets—Consists of net assets with constraints placed on their use either by (1)external groups such as creditors, grantors, contributors, or laws or regulations of othergovernments; or (2) law through constitutional provision or enabling legislation.
c. Unrestricted net assets—All other net assets that do not meet the definition of "restricted" or"invested in capital assets, net of related debt".
In the fund statements, governmental fund equity is classified as fund balance. Fund balance isfurther classified as reserved and unreserved, with unreserved further split between designatedand undesignated.
J. OPERATING REVENUES AND EXPENSES-
Operating revenues and expenses for proprietary funds are those that result from providingservices and producing and delivering goods and/or services. It also includes all revenue andexpenses not related to capital and related financing, noncapital financing, or investing activities.
K. EXPENDITURES/EXPENSES-
In the government-wide financial statements, expenses are classified by function for bothgovernmental and business-type activities.
In the fund financial statements, expenditures are classified as follows:
Governmental Funds - By CharacterProprietary Fund - By Operating and Nonoperating
In the fund financial statements, governmental funds report expenditures of financial resources.Proprietary funds report expenses relating to use of economic resources.
L. BUDGET AND BUDGETARY ACCOUNTING-
Prior to the beginning of each fiscal year, the Town adopts a budget for the next fiscal year. Thebudget is open for public inspection. All budgetary appropriations lapse at the end of the fiscalyear. The budget is prepared on the modified accrual basis of accounting. For the year endedJune 30, 2005, the Town did not prepare a budget.
Page 25
Town of Campti, LouisianaNotes to Financial Statements
June 30, 2005
M. INTERFUND TRANSACTIONS-
Legally authorized transfers are treated as interfund transfers and are included in the results ofoperations of both governmental and proprietary funds.
2005Operating Operating
Transfers In Transfers Out
General Fund $ 21,000 $212,082Utility Fund 212.082 21.000
Totals S191rQ82 $191.082
N. LONG-TERM OBLIGATIONS-
In the government-wide financial statements, long-term debt is reported as liabilities in theapplicable governmental activities statement of net assets.
In the fund financial statements, governmental fund types recognize debt issued reported as otherfinancing sources. Repayment of the principal and interest is shown as an expenditure.
O. ESTIMATES-
The preparation of financial statements in conformity with accounting principles generallyaccepted in the United States of America, require management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure of contingentassets and liabilities at the date of the financial statement and the reported amounts of revenue,expenditures, and expenses during the reporting period. Actual results could differ from thoseestimates.
2. Ad Valorem Taxes
The Town levies taxes on real and business personal property located within the boundaries of theTown. Property taxes are levied by the Town on property values assessed by the Natchitoches ParishTax Assessor and approved by the State of Louisiana Tax Commission.
Page 26
Town of Campti, LouisianaNotes to Financial Statements
June 30, 2005
The Town bills and collects property taxes. The Town recognizes property tax revenues whenlevied.
Property Tax CalendarAssessment date January 1Levy date August 31Tax bills mailed October 15Total taxes are due December 31Penalties and interest added January 31Lien date January 31Tax sale May 15
For the year ended June 30, 2005, taxes of 5.75 mills were levied.
Total taxes collected were $10,020 for 2005, and no provision for uncollectibles is made.
3. Cash and Cash Equivalents:
The Town has cash, cash equivalents, and time deposits (bank balances) of $89,952.
The deposits are stated at cost which approximates market. Under state law these deposits and theresulting bank balances must be secured by federal deposit insurance or the pledge of securitiesowned by the fiscal bank. The market value of the pledged securities plus the federal depositinsurance must at all times equal or exceed the amount on deposit with the fiscal agent. At June 30,2005, these deposits were fully insured by FDIC Insurance.
4. Restricted Assets - Proprietary Fund Type:
Restricted assets of the Utility Fund were applicable to the following at June 30, 2005:
2005
Bond Sinking Fund $ 4,129Bond Contingency Account 8,033Customer Deposits Account 6,729Bond Reserve Account 371
Cash $19,262
Page 27
Town of Campti, LouisianaNotes to Financial Statements
June 30,2005
5. Capital Assets:
Capital assets and depreciation activity for the year ended June 30, 2005, are as follows:
GovernmentalActivities
Capital Assets Not DepreciatedLandConstruction in Progress
Capital Assets DepreciatedBuildings & ImprovementsFurniture, Fixtures & Equipment
Total Assets
Accumulated Depreciation:Building & ImprovementsFurniture, Fixtures & Equipment
Total Accumulated Depreciation
Net Capital Assets
Business-TypeActivities
Capital Assets Not DepreciatedLandConstruction in Progress
Capital Assets DepreciatedBuildingsWater/Sewer SystemMachinery & Equipment
Balance07-01-04
$ 43,75014,531
65,52885,098
$ 208,907
$ 20,08970.940
Additions
$ 00
00
$ 0
$ 2,0595,500
Deletions
$ 00
00
$ 0
$ 00
Balance06-30-05
$ 43,75014,531
65,52885.098
$ 208.907
$ 22,14876.440
$ 91.029 $ 7.559 0 $ 98.588
Balance07-01-04
& 2,690375,991
32,8142,752,709
120.442
Additions
$ 00
0519,932
0
Deletions
$ 0375,991
00
17.266
Balance06-30-05
$ 2,6900
32,8143,272,641
103.176
Total Assets $3.284.646 $519.932 $393.257 $2.200.725
Town of Campti, LouisianaNotes to Financial Statements
June 30, 2005
Page 28
Business-TypeActivities
Accumulated Depreciation:BuildingsWater/Sewer SystemMachinery & Equipment
Total Accumulated Depreciation
Net Capital Assets
Depreciation expense of $7,559 was charj
General GovernmentalPolice
Balance07-01-04
$ 27,6061,039,558
69.751
$1.136.915
$2r 147/731
Additions
$ 1,09468,8183.769
$ 73.681
$446,251
jed to the following governmental
$2,279$5,280
Deletions
$ 000
$ 0
function:
Balance06-30-05
$ 28,7001,108,376
73.520
$1.210.596
6. Long-Term Debt:
The following is a summary of long-term debt of the Town of Campti, Louisiana, for the year endedJune 30, 2005:
GovernmentalActivitiesSales TaxRefund
$34,2360
24,000
Business-TypeActivities
NotePayable
$33,3700
13.436
CapitalLease
$17,2660
17.266
BondPayable
$422,0200
5,478
Utility FundTotal
$472,6560
36.180
Balance at June 30, 2004Debt IssuedDebt Retired
Balance at June 30, 2005
Governmental Activites
As of June 30, 2005, the governmental long-term debt of the Town consisted of the followng:
Sales Tax Refund-$68.236 to be repaid for overpayment ofsales tax from Hercules, Inc. from November 2000 throughJanuary 2002. A repayment plan was made with Hercules,Inc. through the Natchitoches Tax Commission, to refundthe overpayment, dated August 13,2003, due in monthlyinstallments of $2,000, with no interest.
Balance at June 30, 2005
Page 29
Town of Campti, LouisianaNotes to Financial Statements
June 30, 2005
Business-Type Activities
As of June 30, 2005, the long-term debt from proprietary fund resources consisted of the following:
NotePavable-$38,615 noted dated February 2004, due in monthlyinstallments of $ 1,171, interest at 4%, secured by computer equipment. $ 17,934
Revenue Bonds-$448.000 Water Revenue Bonds, dated September 16,1997, due in monthly installments of $2,141, interest 4.88%, securedby revenues earned by the Town from the operation of the water system. 416,542
Total Long-Term Debt $436,476Less, Current Maturities (19.187)
Long-Term Debt, Net of Current Maturities S417.289
The annual debt service requirements to maturity for all debt outstanding as of June 30, 2005, is asfollows:
Year EndingJune 30
2006200720082009
2010-20142015-20192020-20242025-20292030-20342035-2038
Totals
Governmental ActivitiesSales Tax Refund
Principle
Business-Type ActivitiesBond & Note Payable
Principle Interest
$ 18,91413,8306,0386,33936,76246,88659,79876,26697,27074.373
$ 20,83620,05419,65919,35891,72481,60068,68852,22031,2166,349
Page 30
Town of Campti, LouisianaNotes to Financial Statements
June 30, 2005
7. Pension Plan:
The Town's employees became members of the Municipal Employees Retirement System ofLouisiana after June 30, 1996. This system is a cost-sharing, multiple-employer defined benefitpension plan administered by a separate board of trustees. Pertinent information for the retirementsystems follows:
Municipal Employees Retirement System of Louisiana (Svsteni)-
Plan Description-The System is composed of two distinct plans, Plan A and Plan B, with separateassets and benefit provisions. All employees of the municipality are members of Plan B.
All permanent employees working at least 35 hours per week who are not covered by anotherpension plan and are paid wholly or in part from municipal funds and all elected municipal officialsmeeting the requirements of the system are eligible to participate in the System. Under Plan B,employees who retire at or after age 60 with at least 10 years of creditable service or 30 years ofcreditable service, regardless of age, are entitled to a retirement benefit, payable monthly for life,equal to 2 percent 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 thatproduce the highest average. Employees who terminate with at least the amount of creditable servicestated above, and do not withdraw their employee contributions, may retire at the ages specifiedabove and receive the benefit accrued to their date of termination. The System also provides deathand disability benefits. Benefits are established or amended by state statute.
The System issues an annual publicly available financial report that includes financial statements andrequired supplementary information for the System. That report may be obtained by writing to theMunicipal Employees Retirement System of Louisiana, 7937 Office Park Boulevard, Baton Rouge,Louisiana 70809, or by calling (225) 925-4810.
Funding Policv-Under Plan B, members are required by state statute to contribute 5.00 percent oftheir annual covered salary and the Town of Campti is required to contribute at an actuariallydetermined rate. The current rate is 4.5 percent of annual covered payroll. Contributions to theSystem also include one-fourth of one percent (except Orleans and East Baton Rouge Parishes) of thetaxes shown to be collectible by the tax rolls of each parish. These tax dollars are divided betweenPlan A and Plan B based proportionately on the salaries of the active members of each plan. Thecontribution requirements of plan members and the Town of Campti are established and may beamended by state statute. As provided by Louisiana Revised Statute 11:103, the employercontributions are determined by actuarial valuation and are subject to change each year based on theresults of the valuation for the prior fiscal year. The Town of Campti's contributions to the Systemunder Plan B for the year ending June 30, 2005 were $4,422, equal to the required contributions forthe year. Contributions for the year ended June 30, 2004 were $4,960, and $4,570 for 2003.
Page 31
Town of Campti, LouisianaNotes to Financial Statements
June 30,2005
8. Litigation:
At July 30, 2005, the Town was not involved in any civil suit.
9. Flow of Funds, Restriction on Use-Water Revenue:
Under the terms of the bond indenture relating to Water Bonds, all income and revenues (hereinafterreferred to as revenue) of every nature, earned or derived from operations of the Water System, arepledged and dedicated to the retirement of said bonds, and are to be set aside into the followingspecial accounts:
Period Sinking(Dav/Month/Year) Fund
9/20/97-8/20/37 $ 1,820
9/20/98 - 8/20/37 2,141.44
Reserve Fund
Commencing with the monthfollowing completion of andacceptance of the waterworksimprovements financed withthe proceeds of the Bonds,a sum of $91 must be depositedmonthly into this fund.
A sum of $108 per month mustbe deposited into this fund until$25,697.28 has been accumu-lated therein.
Contingency Fund
Commencing with the monthfollowing completion of andacceptance of the waterworksimprovements financed withthe proceeds of the Bonds, asum of $ 123 per month mustbe deposited into this fund.
Payments continue as de-scribed above.
10. Related Parties:
For the year ended June 30, 2005, the Town had made a payment to the Mayor's wife for decorationsand food in violation of state law.
11. Compensation Paid to the Mayor and Council Members:
Donald Davis - MayorOtha BemstineCynita NashRose CalvetDavid JacksonMary Collins
$2,460580640580640480
Total
Page 32
Town of Campti, LouisianaNotes to Financial Statements
June 30, 2005
12. Receivables:
The following is a summary of receivables at June 30, 2005:
General ProprietaryClass of Receivable Fund Fund
Tax, Licenses and Permits-Franchise Tax $ 889 $ 0Sales Tax 1,810 0
Other Receivables 1,530 4.418
Total $4,229 $4.418
Johnson, Thomas & CunninghamCertified Public Accountants
321 Bienville StreetEddie G. Johnson, CPA - A Professional Corporation (1927-1996) Natchitoches, Louisiana 71457
(318) 352-3652Mark D. Thomas, CPA-A Professional Corporation Fax (318) 352-4447Roger M. Cunningham, CPA - A Professional Corporation
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTINGAND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITHGOVERNMENT A UDITING STANDARDS
The Honorable Donald Davis, Mayorand the Town Council
197 Edenborne StreetCampti, Louisiana, 71411
We were engaged to audit the financial statements of the governmental activities, the business-typeactivities, each major fund, and the aggregate remaining fund information of the Town of Campti as ofand for the year ended June 30, 2005, which collectively comprise the Town of Campti's basic financialstatements and have issued our report thereon dated June 16, 2006. We did not express an opinion on thefinancial statements described above because we were unable to obtain supporting documentation for thefinancial activities of the Town of Campti.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Town of Campti's internal control over financialreporting in order to determine our auditing procedures for the purpose of expressing our opinions on thefinancial statements and not to provide an opinion on the internal control over financial reporting.However, we noted certain matters involving the internal control over financial reporting and itsoperation that we consider to be reportable conditions. Reportable conditions involve matters coming toour attention relating to significant deficiencies in the design or operation of the internal control overfinancial reporting that, in our judgment, could adversely affect the Town of Campti's ability to initiate,record, process, and report financial data consistent with the assertions of management in the financialstatements. Reportable conditions are described in the accompanying Schedule of Findings andQuestioned Costs as items 2005-1, 2005-3, 2005-4, 2005-5, 2005-6, 2005-10, 2005-11, 2005-12, 2005-13,and 2005-14.
A material weakness is a reportable condition in which the design or operation of one or more of theinternal control components does not reduce to a relatively low level the risk that misstatements causedby error or fraud in amounts that would be material in relation to the financial statements being auditedmay occur and not be detected within a timely period by employees in the normal course of performingtheir assigned functions. Our consideration of the internal control over financial reporting would notnecessarily disclose all matters in the internal control structure that might be reportable conditions and,accordingly, would not necessarily disclose all reportable conditions that are also considered to bematerial weaknesses. However, we believe that all of the reportable conditions described above arematerial weaknesses.
Exhibit JPage 35
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Campti's financial statements arefree of 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 materialeffect on the determination of financial statement amounts. However, providing an opinion oncompliance with those provisions was not an objective of our audit, and accordingly, we do not expresssuch an opinion. The results of our tests disclosed instances of noncompliance or other matters that arerequired to be reported under Government Auditing Standards and which are described in theaccompanying Schedule of Findings and Questioned Costs as items 2005-2, 2005-7, 2005-8, 2005-9,2005-15, and 2005-16.
This report is intended solely for the information and use of the Town of Campti, the Division ofAdministration for the Office of Community Development, and the Louisiana Legislative Auditor, and isnot intended to be and should not be used by anyone other than these specified parties. However, underLouisiana Revised Statute 24:513, the report is distributed by the Legislative Auditor as a publicdocument.
Johnson. Thomas & CunninghamJohnson, Thomas & Cunningham, CPA's
June 16,2006Natchitoches, Louisiana
Exhibit KPage 36
Town of Campti, LouisianaSchedule of Prior Year Findings and Questioned Costs
Year Ended June 30, 2005
2002-1 Finding - Late submission of annual audit.Status - This is a repeat finding for 2003, 2004, and appears as Finding 2005-1 for the year.
2002-3 Finding - Payroll tax forms (941 's) not filed.Status - This is a repeat finding for 2003, 2004, and appears as Finding 2005-2 for the yearended June 30,2005.
2002-4 Finding - Water/Sewer System accounting system inadequate.Status - This is a repeat finding for 2003, 2004, and appears as Finding 2005-3 for the yearended June 30, 2005.
2003-1 Finding - Late submission of annual audit.Status - This is a repeat finding for 2004, and appears as Finding 2005-1 for the year endedJune 30, 2005.
2003-2 Finding - Minute Book not available.Status - This is a repeat finding for 2005, Legislative Auditor's Report dated September 14,2005, and appears as Finding 2005-4 for the year ended June 30, 2005.
2003-3 Finding- Untimely Payroll Tax Report.Status - This is a repeat finding for 2002, 2004, and appears as Finding 2005-2 for the yearended June 30,2005.
2003-4 Finding - Inadequate listing of assets.Status - This is a repeat finding for 2004, Legislative Auditor's Report dated September 14,2005, and appears as Finding 2005-5 for the year ended June 30, 2005.
2003-5 Finding - Overall internal controls inadequate.Status - This is a repeat finding for 2004, Legislative Auditor's Report dated September 14,2005, and appears as Finding 2005-6 for the year ended June 30, 2005.
2003-6 Finding - Inadequate collateralization of bank accounts.Status - This is a repeat finding for 2004, however this finding is cleared for the year endedJune 30, 2005.
2003-8 Finding - Unfavorable budget variance.Status - Not applicable for 2004 or 2005 as a budget was not prepared.
2004-1 Finding - Separation of duties.Status - Cleared as of June 30, 2005.
Exhibit KPage 37
Town of Campti, LouisianaSchedule of Prior Year Findings and Questioned Costs (continued)
Year Ended June 30, 2005
2004-2 Finding - Untimely completion of audit.Status - This is a repeat finding for 2002, 2003, and appears as Finding 2005-1 for the yearended June 30, 2005.
2004-3 Finding - Budget not adopted for General Fund.Status - This is a repeat finding and appears as Finding 2005-7 for the year ended June 30,2005.
2004-4 Finding - Debt not approved by State Bonding Commission.Status - Cleared as of June 30, 2005.
2004-5 Finding - Noncompliance with Public Bid Laws.Status - Cleared as of June 30, 2005.
2004-6 Finding - Louisiana Compliance Questionnaire not approved.Status - This is a repeat finding and appears as Finding 2005-8 for the year ended June 30,2005.
2004-7 Finding - Inadequate records of disbursements.Status - This is a repeat finding for 2005, Legislative Auditor's Report dated September 14,2005, and appears as Finding 2005-9 for the year ended June 30, 2005.
2004-8 Finding - Lack of evidence supporting capital assets.Status - This is a repeat finding for 2005 and appears as Finding 2005-10 for the year endedJune 30, 2005.
2004-9 Finding - Late filing and payment of payroll taxes and retirement.Status - This is a repeat finding for 2005 and appears as Finding 2005-11 for the year endedJune 30, 2005.
2004-10 Finding - Inadequate collateralization of bank accounts.Status - Cleared as of June 30, 2005.
2004-11 Finding - Inconsistent billing of water and sewer charges.Status - This is a repeat finding for 2005, and appears as Finding 2005-12 for the year endedJune 30, 2005.
2004-12 Finding - Inadequate records for revenue.Status - This is a repeat finding for 2005, Legislative Auditor's Report dated September 14,2005, and appears as Finding 2005-13 for the year ended June 30, 2005.
Exhibit KPage 38
Town of Campti, LouisianaSchedule of Prior Year Findings and Questioned Costs (continued)
Year Ended June 30, 2005
2004-13 Finding - Lack of control over tickets.Status - This is a repeat finding for 2005, Legislative Auditor's Report dated September 14,2005, and appears as Finding 2005-14 for the year ended June 30, 2005.
2004-14 Finding - Late filing and payment of sales tax.Status - This is a repeat finding for 2005 and appears as Finding 2005-15 for the year endedJune 30, 2005.
2004-15 Finding - Non-payment of insurance premiums.Status - This is a repeat finding for 2005 and appears as Finding 2005-16 for the year endedJune 30, 2005.
2004-16 Finding - Unidentified meter deposits.Status - This is a repeat finding for 2005 and appears as Finding 2005-17 for the year endedJune 30, 2005.
2004-17 Finding - Mayor's Court fines being held.Status - This is a repeat finding for 2005 and appears as Finding 2005-18 for the year endedJune 30, 2005.
Exhibit LPage 39
Town of Campti, LouisianaSchedule of Findings and Questioned Costs
Year Ended June 30, 2005
2005-1 Late Submission of Annual Audit
Finding-
The Town is required by state law to have an annual audit performed and submitted to theState within six months after the end of its fiscal year. For the year ended June 30, 2005, theTown's books were in such a condition that the report could not be completed within therequired time-frame. Repeat finding from 2003 and 2004.
Recommendation-
The Town should institute procedures to ensure the Town's records are properly maintainedand available to the auditor within 45 days after the end of the fiscal year.
2005-2 Payroll Tax Forms & Retirement Reports not Filed
Finding-
Payroll tax forms and retirement reports were not prepared or filed in a timely manner. Repeatfinding from 2003 and 2004.
Recommendation-
The Town should ensure all required tax and retirement reports are prepared, submitted andpayments made in a timely manner.
2005-3 Water/Sewer Accounting System Inadequate
Finding-
The Town's accounting system is not being used properly. Management is not approvingeither error corrections or adjusting entries to change customer records. Individual accountshaving sizable changes between months are not investigated. Daily receipts not reconciled todata in the system. Repeat finding from 2003 and 2004.
Recommendation-
Town management should ensure: all changes made to customer's accounts are approved andrecords maintained as to why changes were made; daily cash receipts are balanced to theWater/Sewer System to ensure proper customer account balances.
Exhibit LPage 40
Town of Campti, LouisianaSchedule of Findings and Questioned Costs (continued)
Year Ended June 30, 2005
2005-4 Minute Book not Available
Finding-
Louisiana Law requires that a "municipal minutes" book be maintained by the Town Clerk.For the year ended June 30, 2005, this was not done.
Recommendation-
The Town management should implement procedures to ensure that proper and legallyrequired minutes of public meetings are maintained.
2005-5 Inadequate Listing of Assets
Finding-
Louisiana Law requires the Town to maintain an inventory list of all capital assets owned bythe Town, including land, building, and equipment. For the year ended June 30, 2005, theTown did not have such a list. Repeat finding from 2004.
Recommendation-
The Town should conduct a physical inventory and prepare an asset listing showing, at aminimum, a description of the asset; year acquired; cost or estimated cost and useful life attime of acquisition.
2005-6 Overall Internal Control Inadequate
Finding-
The Town does not have adequate procedures in place to ensure that (1) disbursements areproperly supported by invoice, (2) employee time records are properly maintained, (3) policetickets are accounted for, (4) invoices are approved before payments are made, (5) receipts anddisbursements are recorded in proper fund, and (6) personnel records are kept up to date.Repeat finding from 2004.
Recommendation-
Town management should ensure there are written procedures on all day-to-day operations andthat all employees are aware of and follow the procedures.
Exhibit LPage 41
Town of Campti, LouisianaSchedule of Findings and Questioned Costs (continued)
Year Ended June 30, 2005
2005-7 Budget not Adopted for General Fund
Finding-
Louisiana Law requires that the Town prepare and approve a budget for the General Fund. Forthe year ended June 30, 2005, the Town did not adopt a budget for its General Fund. Repeatfinding from 2004.
Recommendation-
The Town needs to establish procedures to ensure that a properly prepared budget is presentedfor adoption and during the year, any required budget amendments are processed.
2005-8 Louisiana Compliance Questionnaire not Approved
Finding-
The Louisiana Governmental Audit Guide requires the questionnaire to be completed andapproved by the Town Council at the commencement of the audit.
Recommendation-
Procedures should be established to ensure that the questionnaire is completed, approved andgiven to the auditor at the commencement of the audit.
2005-9 Inadequate Records of Disbursements
Finding-
As stated in the audit for the year ended June 30, 2004, and the Legislative Auditor's Reportdated September 14, 2005, there were few copies of invoices to support disbursements madeduring the year.
Recommendation-
Town management should ensure that all disbursements are supported by invoices and are filedin such a manner that this information can be provided to the auditor, hi addition, theserecords of disbursement (public records) need to be maintained for the number of yearsrequired by state law.
Exhibit LPage 42
Town of Campti, LouisianaSchedule of Findings and Questioned Costs (continued)
Year Ended June 30, 2005
2005-10 Lack of Evidence Supporting Capital Assets
Finding-
We were unable to determine if during the year capital assets were either purchased ordisposed of due to the lack of documentation to support any changes. Repeat finding from2004.
Recommendation-
Town management should establish procedures to ensure all documentation supportingincreases in capital assets are maintained in an orderly manner. See Finding 2005-5 and 2005-9 for additional recommendations concerning capital asset and supporting documentation.
2005-11 Late Filing and Payment of Payroll Taxes
Finding-
All payroll operations are in need of review by Town management to include timely filing ofpayroll reports, on-time payment of taxes due, proper use of sign-in sheets and time cards, andmaintenance of individual payroll records. See Legislative Auditor's Report dated September14,2005.
Recommendation-
Town management should re-write the payroll procedures including time and attendancepolicies and ensure all payroll reports and payments are made on time.
2005-12 Inconsistent Billing of Water/Sewer Charges
Finding-
The monthly billings for Water/Sewer charges were not prepared each month, not all bills weresent to customers, and there was no follow-up in delinquent accounts. See LegislativeAuditor's Report dated September 14, 2005, for additional findings.
Recommendation-
Town management should establish written procedures and policies on how the billing andcollection system should apply to the Town. The Town management should establish reportingrequirements to ensure, on a monthly basis, that all requirements for billing and collection offees are being followed.
Exhibit LPage 43
Town of Campti, LouisianaSchedule of Findings and Questioned Costs (continued)
Year Ended June 30, 2005
2005-13 Inadequate Records for Revenues
Finding-
There were not sufficient records of revenues received as few, if any, documents weremaintained. The Town is required to maintain the public records for a minimum of three years.
Recommendation-
Town management should ensure that all documents are retained as required by law. SeeLegislative Auditor's Report dated September 14, 2005, for additional comments ondocumentation retention and recording of receipts.
2005-14 Lack of Control over Tickets
Finding-
The Town did not control the issuance of citation books to police officers as required by statelaw. See the Legislative Auditor's Report dated September 14, 2005, for additional commentsconcerning the citation books.
Recommendation-
Town management and the Campti Police Department should ensure that all requirements oflaw are being properly applied to the issuance and control of citation books.
2005-15 Late Filing and Payment of Sales Tax
Finding-
The Town did not make timely payments or file timely sales tax reports as required by thestate.
Recommendation-
Town management should establish procedures to ensure that all sales tax reports andremittance are sent to the State on or before the due date.
Exhibit LPage 44
Town of Campti, LouisianaSchedule of Findings and Questioned Costs (continued)
Year Ended June 30, 2005
2005-16 Non-payment of Insurance
Finding-
The Town failed to pay the Louisiana Municipal Risk Management Agency for liabilityinsurance for the year ended June 30, 2005.
Recommendation-
Town management should negotiate with the Louisiana Municipal Risk Management Agencyto resolve this matter.
2005-17 Unidentified Meter Deposits
Finding-
Customer deposits for meter deposits cannot be identified to an individual or if some of thesefunds should be applied to delinquent accounts or refunded to customers. Repeat finding from2004.
Recommendation-
Town management should develop a method to identify customer deposits.
2005-18 Mayor's Court Fines
Finding-
Funds collected by the Mayor's Court represent income to the Town and other governments.The Town is unable to determine the proper disposition between the Town and othergovernments.
Recommendation-
The Town should determine which amounts are due to the respective agencies and remit same.Repeat finding from 2004.
Exhibit MPage 45
Town of CamptiStatus of Legislative Auditor's Report
Dated September 14, 2005For the Year Ended June 30, 2005
Finding: Failure to maintain public records.Status: Unresolved.
Finding: Financial obligations. IRS lien and liability insurance.Status: Unresolved.
Finding: Budget not prepared for fiscal year 2004/2005.Status: Unresolved.
Finding: Lack of disbursement documentation and improper payments.Status: Unresolved.
Finding: Improper posting of property tax.Status: Unresolved.
Finding: Improper sales tax distribution.Status: Unresolved.
Finding: Improper billing/collecting water and sewer user fees.Status: Unresolved.
Finding: Lack of lease agreements for Town owned property.Status: Unresolved.
Finding: Improper handling & transfer of grants.Status: Unresolved.
Finding: Requirements of bond resolutions not complied with.Status: Unresolved.
Town of CaraptiCMftfrti, LA 71411
Town Response to Finding of 2005 Audit
Late Submission of Annual audit 2005-1
As of March 2005» the former Town Clerk was whired. All Town records will beproperly maintained and av«)«ble to the auditor within 43 days after flic end of thefiscal year.
Payroll Tax Forms A Retirement Reports not filed 2005-2
Payroll Us forms and retirement reports for 2003 and 2004 have been completed and filed, ak>ngwith payments. The first quarts' of 2005 was not filed on time. (See Text Above. Town Clerk)The last three quarters of 2005 was on time.
Water/Sewer Accounting System Inadequate 2005-3
In March 2005, the former Water Clerk was rchired; along with this rehiring was improvements tothe Water/Sewer accounting system. Accounts arc balance daily Any changes to customer accountsare approved by the Mayor or Council
Minute Book not Available 2005-4
Since Match 2005, minutes for fill public meetings have been kept and published in the local newspaper.
Inadequate Listing Of Assets 2005-5
A listing of all Town Assets have been established with time purchased, expected life, description of properly andcost and value of assets,
Overall Internal Control Inadequate 2005-0
The Town has a Purchase Order and Requisition system in place. All employees are required to clock mand out of work. Tne mayor signs off cm all invoices. Since March 2005, all receipts and disbursements arerecorded In the proper fund The Mayor's Court Clerk ensures thai all police tickets arc accounted for.
Budget not Adopted for General Fund 2005-7The Town has establish procedure* to ensure that a properly prepared budget is presented for adoption duringthe year. A Genera) fund budget was adopted for the fiscal 2006.
Louisiana Compliance Questionnaire not Approve 2005-8
Procedures have been established to ensure thai the questionnaire will be completed, approved andgiven to the auditor at the bcginniDK of the audit
Inadequate Records of Disbursements 2005-9
The Town has an accounting system in place. The mayor signs off cm alt invoices, these records willbe kept as required by Louisiana Law, Our records will be available to the auditor.
Lack of Evidence Supporting Capitol Assets 2005-10
The Town now has a current list of all Capital Assets on file.
Late Filing and Payment of Payroll Taxes 2005-11
Payroll Taxes have been filed and paid on time since March 2005. A payment plan has been negotiated with tncIRS to pay beck taxes.
Inconsistent Billing of Water/Sewer Charges 2005*12
Town of Campti water bUls are mailed out around the 3rt of each month. Late fees aw added to unpaidaccounts at 8:00 a,m. on the 21" of each month. Accounts not paid by the 26* of the month are added10 the disconnect list and are charged a $20.00 reconnect fee. Bills are not adjusted unless there was anerror in the meter reading or approval by the Mayor, Receipts are reconciled to data in the system daily.
Inadequate Records for Revenues 2005-13
There is an invoice and purchase order for anything that the Town purchases. The Mayor signs off on thesedocuments. As of March 2005, All Town documents ate stamped of date received and filed in an appropriatemanner. These documents will be maintained as required by law.
Lack of control over Tickets 2005-14
As of now, all citation books are issued by the Town Clerk. Citation books are to be returned to theTown Cleric before any other citation books are issued to The Police Department
Late Filing and Payment of Sales Tax 2005-15
All delinquent Sales Taxes have been paid. Sales Tax Reports and Remittance are sent to the Statein a timely manner now.
Non-payment of Insurance 2005-16
fowo management has negotiated with the Louisiana Municipal Risk Management Agency to resolve this matterFhe Town now has liability insurance.
Unidentified Meter Deposit 2005-17
After getting software system on line, there is a listing of customer accounts oa file.
Mayor's Court Fines 2005-18
Fines for traffic citations are being collected and distributed to the following agencies: Ware Vouch Center,North Louisiana Crime Laboratory Commission, Louisiana Commission on Law Enforcement, Court CaseManagement Information Systems before the 10* of each month
Summary
The Town of Campti has had procedures and policies to ensure compliance of State Laws. This present Councilcan't explain why these procedures and policies weren't followed during tbe fiscal years 2002*2003,2003-2004and the first quarter of 2005. We assure you that these procedures will be followed until the end of this term.