town of mamou - louisianaapp1.lla.la.gov/publicreports.nsf/e17dcc28974fc94586257b... ·...

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TOWN OF MAMOU, LOUISIANA

Financial Report

Year Ended December 31,2012

Uri(der provisions of state law. this report is a public document Acopy of the report has been submitted to the entity and other appropriate public officials The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and v /here appropriate at the office of the pansh clerk of court

JUL 0 3 2013 Release Date

C Burton Kolder CPA* Russell F Champasne CPA* Victof R. Slaven CPA-Gerald A. Thibodeaux. Jr CPA* RobeftS Carter. CPA-ArthuT R. Moan. CPA" Penny Angelle Scruggtns. CPA Chnstine C Doucot. CPA

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS

LLC

OFFICES

Wanda F Arcement CPA.CVA Alien J LaBry. CPA Albert R Leoer CPA PFS CSA' Marsnall W Guidry CPA Stephen R Moore Jr CPA.PFS CFP*ChFC** James R Roy CPA Robert J Metz, CPA AlanM Taylor CPA Ketty M. Ooucet. CPA Chery L. Bartley CPA Mandy B SeK CPA Peul U Delcambre Jr CPA Knstm B Dauzat. CPA Matthew E Margaglio CPA JaneR Hebert CPA Bryan K. Joubert. CPA Stephen J Arwlervon CPA W Jeffrey Lowry CPA

Retired-ConrBdO Chapman CPA* 2006 Tynes E Mixon Jr CPA 2011 P Troy Courville, CPA* 2013

163 South Beadle Rd Lafayette LA 70508 Phone (337) 232-4141 Fax (337) 232-8860

113 East Bridge St. Breaux Bridge, LA 70517 Phone (337) 332-4020 Fax (337) 332-2687

1234 David Dr Ste 203 Morgan City. LA 70380 Phone (985) 384-2020 Fax (985) 364-3020

408 West Cotton Street Ville Platte, LA 70588 Phone (337) 383-2792 Fax (337) 363-3049

332 West Sixth Avenue Obedia LA 70655 Phone (337) 63&^737 Fax (337) 639-4568

450 East Main Street Newlbena LA70560

Phone (337) 367-9204 Fax (337) 367-9208

200 South Main Street Abbeville. LA 70510

Phone (337) 633-7944 Fax (337) 693-7948

1013 Main Street Franklin, LA 70538

Phone (337) 628-0272 Fax (337) 628-0290

133 East WaddilSL Mart(8VilleLA71351

Phone (318)253-9252 Fax (318) 253-8681

1426 Metro Dnve Atoxandria. LA 71301

Phone (318) 442-4421 Fax (318) 442-9833

MANAGEMENT LETTER WEBSITE

WWW KCSRCPAS COM

A Pioteistonal Aooountlng Coipontlon

The Honorable Ricky Fontenot, Mayor and Members of the Board of Aldermen

Town of Mamou, Louisiana

We have completed our audit of the basic financial statements of the Town of Mamou, Louisiana for the year ended December 31, 2012, and submit the following recommendation for your consideration

A continuing significant gas loss occurred in the Gas Utility Department. Despite efforts to locate and repair gas leaks, this loss has not significantly decreased firom pnor years The Town should investigate possible reasons for the excess gas loss and continue efforts to reduce the loss.

In conclusion, we express our appreciation to you and your staff, particularly to your office staff, for the courtesies and assistance rendered to us during the performance of our audit. Should you have any questions or need assistance in implementing our recommendations, please feel fi-ee to contact us.

Kolder, Champagne, Slaven & Company, LLC Certified Public Accountants

Lafayette, Louisiana June 21, 2013

Member of AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTA^^'S

Member of SOCIETY OF LOUISIANA

CERTIFIED PUBLIC ACCOUNTAMTS

TABLE OF CONTENTS

Page

Independent Auditors' Report 1-4

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS) Statement of net position 7 Statement of activities 8

FUND FINANCIAL STATEMENTS (FFS) Balance sheet - govemmental funds 11 Reconciliation of the govemmental funds balance sheet

to the statement of net position 12 Statement of revenues, expenditures, and changes in fiind balances-

governmental funds 13 Reconciliation of the statement of revenues, expenditures, and

changes in fund balances of govemmental funds to the statement of activities 14 Statement of net position - proprietary funds 15 Statement of revenues, expenses, and changes in fund net

position - proprietary funds 16 Statement of cash flows - proprietary funds 17-18

Notes to basic financial statements 19-41

REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedules

General Fund 43 Sales Tax Special Revenue Fund 44

OTHER SUPPLEMENTARY INFORMATION

OTHER FINANCIAL INFORMATION Statement of net position (with prior year comparable amounts) 47 Balance sheet - govemmental funds (with prior year comparable amounts) 48 Statement of revenues, expenditures, and changes in fund balances-

governmental funds (with prior year comparable amounts) 49 Major Govemmental Funds (with prior year comparable amounts) -

General Fund - budgetary comparison schedule - revenues 50 General Fund - budgetaiy comparison schedule- expenditures 51-53 Sales Tax Fund - budgetary comparison schedule 54

Schedule of number of utility customers (unaudited) 55 Schedule of insurance m force (unaudited) 56

(continued)

TABLE OF CONTENTS (Continued)

Page

Combined schedule of interest-bearing deposits - all funds 57 Comparative statement of net position - proprietary funds 58 Comparative statement of revenues, expenses, and changes in fiind net

position - proprietary funds 59 Departmental analysis of revenues and expenses - utility fund 60

COMPLIANCE, INTERNAL CONTROL AND OTHER GRANT INFORMATION

Independent Auditor's Report on Intemal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditmg Standards 62-63

Summary schedule of current and prior year audit findings and corrective action plan 64-65

C Burton Kolder CPA* Russell F Champagne CPA* Victor R Slaven. CPA* Gerald A. ThiDodeaux, Jr, CPA' Robert S Carter CPA* Arthur R Mucon. CPA* Penny Angelle Scruggins CPA Chnstirw C Ooucet, CPA

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS

Wenda F Arcement CPA.CVA Allen J LaBry CPA Alben R Leger CPA.PFS CSA* Marshall W Guidry CPA Stephen R Moore Jr CPA,PFS CFP*ChFC' James R Roy CPA Robert J Metz, CPA Alan M Teylor, CPA Keily M Doucst, CPA Cheiyl L Bartley, CPA Mandy B Serf CPA Paul L Delcambre Jr CPA Knstin B Dauzat CPA Matthew E Margaglio. CPA JaneR Hebert CPA Bryan K. Joubert CPA Stephen J Anderson CPA W Jeffrey Lowry CPA

Retrred Conrad 0 Chapman CPA* 2006 TynesE Mixon Jr CPA2011 P Troy Courville CPA'2013

OFFICES

183 South Beadle Rd Lafayette, LA 70508 Phone (337) 232-4141 Fax (337) 232-6660

450 East Mam Street New Ibena LA 70560

Phone (337) 367-9204 Fax (337) 367-9208

113 Best Bridge St. 200 South Main Street Breaux Bndge LA 70517 Abbeville LA 70510 Phone (337) 332-4020 Phone (337) 893-7944 Fax (337) 332-2867 Fax (337) 893-7946

1234 David Dr Ste 203 Mcvgan City. LA 70360 Phone (985) 384-2020 Fax (985) 384-3020

408 West Cotton Street Ville Platte, LA 70586 Phone (337) 363-2792 Fax (337) 363-3049

1013 Mam Street FranMin LA 70538

Phone (337) 828-0272 Fax (337) 828-0290

133EastWaddilSt Maricsville LA 71351

Phone (318) 253-9252 Fax (318) 253-8681

332 West Sixth Avenue 1428 Metro Drrve Oberlin, LA 70655 Alexandna LA 71301 Phone (337) 63»4737 Phone (318) 442^4421 Fax (337) 639-4568 Fax (318) 442-9633

WEB SITE WWW KCSRCPAS COM

' A PrutMSloraJ Accotmtjng COfporBllon INDEPENDENT AUDITORS' REPORT



Report on the Financial Statements

We have audited the accompanying financial statements of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Mamou, Louisiana, as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the basic financial statements of the Town's primary govemment as listed in the table of contents

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, this includes the design, implementation, and maintenance of intemal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards^ issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the nsks of matenal misstatement of the financial statements, whether due to fi-aud or error In making those nsk assessments, the auditor considers intemal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropnate in the

Member of AMERICAN INSTmjTE OF CERTIFIED PUBLIC ACCOUNTANTS

Member of SOCIETY OF LOUISIANA

CERTIFIED PUBLIC ACCOUNTANTS

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's intemal control Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well a evaluating the overall presentation of the financial statements

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions

Basis for Adverse Opinion on Aggregate Discretely Presented Component Units and Qualifled Opinion on Aggregate Remaining Fund Information

The financial statements referred to above do not include financial data for the Town's legally separate component units Accounting pnnciples generally accepted in the United States of America require financial data for those component units to be reported with the financial data of the Town's primary govemment unless the Town also issues financial statements for the financial reporting entity that include the financial data for its component units. The Town has not issued such reportmg entity financial statements The amount by which this departure from accounting principles generally accepted in the United States of America would affect the assets, liabilities, net position, revenues and expenses of the aggregate discretely presented component units is not reasonable determinable In addition, the amount by which this departure from accounting pnnciples generally accepted in the United States of Amenca would affect assets, liabilities, fund balances, revenues, and expenditures of the aggregate fund information is also not reasonably determinable

Adverse Opinion on Aggregate Discretely Presented Component Units

In our opinion, because of the significance of the matter descnbed in the "Basis for Adverse Opinion on Aggregate Discretely Presented Component Units and Qualified Opinion on Aggregate Remaining Fund Information" paragraph, the financial statements referred to above do not present fairly the financial position of the aggregate discretely presented component units of the Town of Mamou, Louisiana, as of December 31, 2012, or the changes in financial position thereof for the year then ended.

Qualified Opinion on Aggregate Remaining Fund Information

In our opinion, except for the matter descnbed in the "Basis for Adverse Opinion on Aggregate Discretely Presented Component Units and Qualified Opinion on Aggregate Remaining Fund Information" paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of the aggregate remaining fiind mfonnation of the Town of Mamou, Louisiana, as of December 31, 2012, and the changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America

Unmodified Opinions

In our opinion, the financial statements referred to above present fairly, in all matenal respects, the respective financial position of the govemmental activities, the business-type activities, and each major fiind of the Town of Mamou, Louisiana, as of December 31, 2012, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting pnnciples generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 43 - 44 be presented to supplement the basic financial statements Such information, although not a part of the basic financial statements, is required by the Govemmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropnate operational, economic, or histoncal context We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained dunng our audit of the basic financial statements We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

The Town of Mamou, Louisiana has omitted management's discussion and analysis that, although not a part of the basic financial statements, is required by the Govemmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context Our opinion on the basic financial statements is not affected by this omitted information

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Mamou, Louisiana's basic financial statements The other supplementary information on pages 47 through 60 is presented for purposes of additional analysis and is not a required part of the basic financial statements

The other supplementary information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such infomiation has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America In our opinion, the other supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole

The schedule of number of utility customers and the schedule of insurance in force have not been subjected to the auditing procedures applied m the audit of the basic financial statements and accordingly, we do not express an opinion or provide any assurance on them The pnor year comparative information included in the other supplementary information has been derived from the Town of Mamou, Louisiana's 2011 financial statements, which was subjected to the auditing procedures applied m the audit of the baste financial statement and, in our opinion, was fairly presented in all material respects in relation to the basic financial statements taken as a whole, except for the schedule of number of utility customers and the schedule of insurance in force which were not subjected to the auditing procedures applied in the audit of the basic financial statements and on which we expressed no opinion

Other Reporting Required by Government Auditing Standards

As described in Note 21 to the financial statements, the Town of Mamou, Louisiana adopted the provisions of GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, in 2012

In accordance with Govemment Auditing Standards, we have issued our report dated June 21, 2013, on our consideration of the Town of Mamou, Louisiana's intemal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters The purpose of that report is to describe the scope of our testing of intemal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on intemal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditmg Standards in considenng the Town of Mamou, Louisiana's intemal control over financial reporting and compliance


Lafayette, Louisiana June 21, 2013

BASIC FINANCLVL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS)


Statement of Net Position December 31,2012

ASSETS Current assets

Cash and interest-bearing deposits Receivables, net Due from other govemmental units Inventory Prepaid items

Total current assets

Noncurrent assets Restricted assets.

Cash and interest-bearing deposits Capital assets, net

Total noncurrent assets

Total assets

LIABILITIES Current liabilities

Accounts and other payables Claims payable Advances from grantors Intemal balances

Total current liabilities

Noncurrent liabilities. Customers deposits payable Contingent liabilities

Total noncurrent liabilities

Total liabilities

NET POSITION Invested in capital assets, net of related debt Unrestricted

Total net assets

Govemmental Activities

$1,307,415 116,073

4,233 -

51,296

1,479,017

100,000 3,694,380

3,794,380

5,273,397

106,396 37,859

7,390 42,552

194,197

-25,000

25,000

219,197

3,694,380 1,359,820

$5,054,200

Business-Type Activities

$ 395,695 231,506

-

23,225 13,175

663,601

218,575 3,307,370

3,525,945

4,189,546

62,396 --

(42,552)

19,844

218,575 -

218,575

238,419

3,307,370 643,757

$3,951,127

Total

$1,703,110 347,579

4,233 23,225 64,471

2,142,618

318,575 7,001,750

7,320,325

9,462,943

168,792 37,859

7,390 -

214,041

218.575 25,000

243,575

457,616

7,001,750 2,003,577

$9,005,327

The accompanymg notes are an integral part of the basic financial statements

7 /


Statement of Activities For the Year Ended December 31. 2012

Activities Govemmental activities

General govemment Public safety -

Police Streets Culture and recreation Judicial

Total govemmental activities Business-type activities

Gas Water Sewer

Total business-type activities

Total

Expenses

$ 998,879

1,044,556 419,374 207,742

66,884

2,737,435

521.940 348,440 392,038

Fees Charg<

S

Program Revenues Operating

;, Fines, and Grants and ;s for Services Contributions

146.563 $ 22.957

480,687 18.961 5,000

23.325

650.575

801,401 532,076 468.519

46,918

Capital Grants and

Contributions

$ -

41,673

41.673

35,000

Net (Expense) Changes in


$ (829,359)

(503,235) (414,374) (184,417)

(66,884)

(1.998,269)

Revenues and Net Assets Business-Type

Activities

$

.

314,461 183.636 76,481

Total

$ (829,359)

(503.235) (414,374) (184.417)

(66.884)

(1,998,269)

314,461 183,636 76,481

1,262.418

$3,999,853

1,801,996

$2,452,571 $ 46,918

35,000 574,578

General revenues Taxes-

Ad valorem taxes, levied for general purposes Ad valorem taxes, levied for streets and recreation Sales and use taxes, levied for general purposes Sales and use taxes, levied for capital improvements Sales and use taxes, levied for industry and tourism inducement Franchise taxes

Grants and contributions not restncted to specific programs -

State sources Interest and mvestment earnings Hospital lease revenue Hospital receivable revenue Nursing home lease revenue Miscellaneous

Transfers to component unit Transfers

Total general revenues and transfers

Change in net position

Net position - January 1,2012

Net position - December 31, 2012

68,655 112,015 450,493 183,533 33,370

150,940

8,135 3,939

318,750 468

244,550 138.425

(474,700) 1,320.330

2.558.903

560,634

4,493,566

1,889

574,578

$ 76,673 $(1,998,269) $ 574,578 $(1,423,691)

(1,320.330)

(1.318.441)

(743.863)

4.694,990

68,655 112,015 450,493 183.533

33.370 150.940

8.135 5,828

318,750 468

244,550 138.425 (474,700)

1,240,462

(183.229)

9.188,556

$ 5,054.200 $3,951.127 $ 9,005,327

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

FUND FINANCIAL STATEMENTS (FFS)

FUND DESCRIPTIONS

General Fund

The General Fund is used to account for resources traditionally associated with govemments which are not required to be accounted for in another fund

Special Revenue Fund

Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes

Sales Tax Fund To account for the receipt and use of proceeds of the Town's two 1% sales and use taxes as described below.

The proceeds of the Town's 1986 1% sales tax are dedicated to and used for any lawful corporate purpose of the Town This tax was renewed by the voters of the Town in April 2011

The proceeds of the Town's 1991 1% sales tax are dedicated and divided as follows thirty-five percent (35%) for any lawful corporate purpsoe of the Town; ten percent (10%) for inducing and attracting commerce, industry and tourism in the Town, including the acquisition and improvement of land and buildings there for; and fifty-five percent (55%) for constructing, acquiring, improving and/or extending any work of capital improvement forthe Town

Enterprise Fund

Utility Fund -To account for the provision of gas, water, and sewerage services to residents of the Town. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection

10


Balance Sheet Govemmental Funds December 31,2012

ASSETS

Cash Interest-bearing deposits Receivables*

Taxes Accrued interest Other

Due from other funds Due from other govemmental units Prepaid expenses Restricted cash

Interest-bearing deposits Total assets

General

Sales Tax Special

Revenue Total

$149,080

485,649

115,896

18 159 -

4,233

40,728

100,000

$895,763

$ -666,690

-

-

-

97,881

-

-

_

$764,571

$ 149,080

1,152,339

115,896

18 159

97,881

4,233

40,728

100,000

$1,660,334

LIABILITIES AND FUND BALANCES

Liabilities Accounts and other payables Compensated absences payable Advances from grantors Due to other funds

Total liabilities

Fund balances' Nonspendable Restricted - sales tax dedications Unassigned

Total fund balances

Total liabilities and fund balances

$ 86,083

19,919

168,314

274,316

40,728

580,719

621,447

$895,763

$ 394

7,390

7,784

756,787

756,787

$764,571

$ 86,477

19,919

7,390

168,314

282,100

40,728

756,787

580,719

1,378,234

$1,660,334


11


Reconciliation of the Govemmental Funds Balance Sheet to the Statement of Net Position

December 31,2012

Total fund balances for govemmental fiinds at December 31, 2012 $ 1,378,234

Total net position reported for govemmental activities in the statement of net position is different because

Capital assets used in govemmental activities are not financial resources and, therefore, are not reported in the funds Those assets consist of Construction in progress $ 19,625 Und 269,650 Buildings and improvements, net of $878,832 accumulated depreciation 2,254,924 Infrastructure, net of $ 1,012,544 accumulated depreciation 984,076 Equipment, furniture, and fixtures, net of $505,921 accumulated depreciation 70,854 Vehicles, net of $150,680 accumulated depreciation 95,251 3,694,380

Long-term liabilities at December 31, 2012 Contingent liability (25,000)

Net position of the group self-insurance internal service fund 6,586

Total net position of govemmental activities at December 31,2012 $5,054,200


12


Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds

For the Year Ended December 31, 2012

Revenues* Taxes Licenses and permits Intergovemmental Fines and forfeits Miscellaneous

Total revenues

Expenditures Current -

General govemment Administrative

Public safety. Police

Highways and streets Culture and recreation Judicial

Capital outlay

Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources (uses). Transfers in Transfers out Transfers in (out) - component unit

Total other financing sources (uses)

Net changes in f\ind balances

Fund balances, beginning

Fund balances, ending

General

$ 331,610

146,563

146,091

431,322

714,435

1,770,021

Sales Tax

Special

Revenue

$ 667,396

-

-

-

15,991

683,387

Total

$ 999,006

146,563

146,091

431,322

730,426

2,453,408

917,172 53,259 970,431

1,011,765

375,034

134,131

64,960

101,176

2,604,238

(834,217)

1,907,644

-

(474,700)

1,432,944

598,727

22,720

$ 621,447

-

-

-

-

112,352

165,611

517,776

.

(587,314) -

(587,314)

(69,538)

826,325

$ 756,787

1,011,765

375,034

134,131

64,960

213,528

2,769,849

(316,441)

1,907,644

(587,314)

(474,700)

845,630

529,189

849,045

$ 1,378,234


13


Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Govemmental Funds

to the Statement of Activities For the Year Ended December 31, 2012

Total net changes in fund balances at December 31,2012 per Statement of Revenues, Expenditures and Changes in Fund Balances $ 529,189

The change in net position reported for govemmental activities in the statement of activities is different because

Govemmental funds report capital outlays as expenditures However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense Capital outlay which is considered expenditures on the Statement of Revenues, Expenditures and Changes in Fund Balances $ 213,478 Depreciation expense for the year ended December 31,2012 (185,541) 27,937

Difference between proceeds from the sale of assets on the Statement of Revenues, Expenditures and Changes in Fund Balances and the Gain on Disposal of Assets on the Statement of Activities (969)

Net income of group self-insurance intemal service fund 4,477

Total changes in net position at December 31, 2012 per Statement of Activities $ 560,634

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

14


Statement of Net Position Proprietary Funds

December 31,2012


Cash Interest-bearing deposits Receivables -

Accounts Unbilled utility receivables Accmed interest receivable Other

Due from other fiinds Inventory - natural gas Prepaid items

Total current assets Noncurrent assets

Restncted assets -Interest-beanng deposits

Capital assets, net of accumulated depreciation Total noncurrent assets

Total assets


Accounts and other payables Compensated absences payable Claims payable


Business-type Activities Enterprise Fund

$ 1 395,694

158.098

73,192

8

208

42,552

23,225

13,175

706,153

218,575

3,307,370

3,525,945

4,232,098

58,409

3,987

62,396

Noncurrent liabilities Customers' deposits

Total liabilities

NET POSITION Invested m capital assets, net of related debt Unrestncted

Total net position

218,575

280,971

3,307,370 643,757

$3,951,127

Govemmental Activities Intemal Service Fund

$ 5,996

27,881

10,568

44,445

44,445

37,859 37,859

37,859

6,586

$ 6,586


15


Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds

Year Ended December 31, 2012

Business-type Activities- Govemmental Activities

Operating revenues Charges for services Permits, reconnections and penalties Miscellaneous

Total operating revenues

Operating expenses-Gas department expenses Water department expenses Sewerage department expenses Depreciation expense Self insurance expenses

Total operating expenses

Operating income

Nonoperating revenues (expenses). Interest income

Income before contributions and transfers

Capital contributions

Income before transfers

Transfers out

Change in net assets

Net position, beginning

Net position, ending

Enterprise Fund

$1,724,748 63,729 13,519

1,801,996

505,073 272,914 252,001 232,430

1,262,418

539,578

1,889

541,467

35,000

576,467

(1,320,330)

(743,863)

4,694,990

$3,951,127

Intemal Service Fund

$361,940

361,940

357,463

357,463

4,477

4,477

4,477

4,477

2,109

$ 6,586

The accompanying notes are an integral part of this statement.

16


Statement of Cash Flows Propnetary Funds

For the Year Ended December 31,2012

Busmess-type Activities - Govemmental Activities -

Cash flows from operating activities Receipts from customers Payments to suppliers Payments to employees Other receipts

Net cash provided (used) by operating activities

Cash flows from noncapital financing activities Capital contnbutions Transfers to other funds

Net cash used by noncapital financing activities

Cash flows from capital and related financing activities Net increase in customer meter deposits Net acquisition of property, plant and equipment

Net cash used by capital and related financing activities

Cash flows from investing activities Net purchases of interest-beanng deposits with

maturity in excess of ninety days Interest eamed

Net cash provided by investing activities

Net decrease in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of penod

Enterpnse Fund

$1,790,953 (845,537) (200.577)

13.536

758,375

35,000 (704,855)

(669,855)

7,175 (100,900)

(93,725)

Internal Service Fund

$ 362,657 (364.402)

(1,745J

-

-

(1,064) 1.948

884

(4,321)

387.094

$ 382,773

—

L

--.

(1,745)

7.741

5.996

(continued)

17


Statement of Cash Flows Proprietary Funds (Continued)

For the Year Ended December 31,2012

Busmess-type Activities - Govemmental Activities -Enterpnse Fund Intemal Service Fund

Reconciliation of operatmg income to net cash provided (used) by operatmg activities

Operating income Adjustments to reconcile operatmg mcome to net

cash provided (used) by operatmg activities Depreciation Changes in current assets and habihties

Increase accounts receivable Increase in provision for uncollectible accounts Decrease in unbilled utility receivables Decrease m other receivables Increase inventory (Increase) decrease in prepaid items Decrease in provision for accounts payable Decrease in provision for compensated absences payable Decrease in provision for claims payable

Net cash provided (used) by operating activities

Reconciliation of cash and cash equivalents per statement of cash flows to the balance sheet

Cash and cash equivalents, beginnmg of period -Cash - unrestricted Interest-beanng deposits - unrestricted Interest-bearing deposits - restricted

Less Interest'bearmg deposits with maturity in excess of 90 days

Total cash and cash equivalents

Cash and cash equivalents, end of period -Cash - unrestricted Interest-bearing deposits - unrestricted Interest-beanng deposits - resu-icted

Less Interest-bearing deposits with maturity in excess of 90 days

Total cash and cash equivalents

Net decrease

$ 539,578

232,430

(20,879) 11.171 12.184

17 (1.538)

(53) (10.277) (4,258)

$ 758,375

$ 1 406.126 211.400

(230,433) 387,094

395.694 218.575

(231.497) 382.773

$ 4,477

717

1,101

(8,040)

$ J 1 J 4 5 )

$ 7,741

7,741

5.996

5,996

(4,321) $ (1,745)

The accompanymg notes are an integral part of the basic financial statements

18


Notes to Basic Financial Statements

(1) Summary of Significant Accounting Policies

The accompanying financial statements of the Town of Mamou (Town) have been prepared in conformity with generally accepted accounting pnnciples (GAAP) as applied to govemmental units GAAP includes all relevant Govemmental Accounting Standards Board (GASB) pronouncements The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note.

A Financial Reporting Entitv

The Town of Mamou was incorporated on January 4, 1911, under the provisions of the Lawrason Act The Town operates under the Mayor-Board of Aldermen form of govemment

As the municipal goveming authority, for reporting purposes, the Town of Mamou is considered a separate financial reporting entity. The financial reporting entity consists of (a) the primary govemment (municipality), (b) organizations for which the pnmary govemment is financially accountable, (c) other organizations for which the nature and significance of their relationship with the pnmary govemment are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete, and (d) organizations that are closely related to, or financially integrated with the pnmary govemment

Govemmental Accounting Standards Board (GASB) Statement No. 14 as amended by Statement No 39 established criteria for determining which component units should be considered part of the Town of Mamou for financial reporting purposes. The basic cntenon for including a potential component unit within the reporting entity is financial accountability The GASB has set forth cnteria to be considered in determining financial accountability. These criteria include*

1 Appointing a voting majority of an organization's goveming body, and

a The ability of the municipality to impose its will on that organization and/or

b The potential for the organization to provide specific financial benefits to or impose specific financial burdens on the municipality

2 Organizations for which the municipality does not appoint a voting majority but are fiscally dependent on the municipality

19


Notes to Basic Financial Statements (Continued)

3 Organizations for which the reporting entity's financial statements would be misleading if data of the organization is not included because of the nature or significance of the relationship if all of the following conditions exist.

a The economic resources received or held by the organization are entirely or almost entirely for the direct benefit of the primary govemment, its component units, or its constituents

b. The primary govemment (or its component units) is entitled to, or has the ability to otherwise access, a majonty of the economic resources received or held by the separate organization.

c The economic resources received or held by an individual organization that the specific primary govemment (or its component units) is entitled to, or has the ability to otherwise access, are significant to that primary govemment

4 Organizations that are closely related to, or financially integrated with the primary govemment

The following component units are not presented in the accompanying financial statements*

Savoy Cancer Center, Inc

The Savoy Cancer Center, Inc. (a nonprofit organization) was determined to be a component unit but is not presented in the accompanying financial statements The organization's primary function is limited to fundraising activities to provide support for indigent cancer patients The Center is a nonprofit organization incorporated on June 29, 1998 The Center was formed for the purpose of operating and managing a facility for treating cancer patients and is exempt from income taxes under Section 501(c)(3) of the Intemal Revenue Code The direction, administration and management of the Center is governed by a Board of Directors orTmstees of not less than six (6) nor more than ten (10) members The members serve terms of one to three years

Complete financial statements for the component unit may be obtained at the entity's administrative office (Savoy Cancer Center, Inc, 803 Poinciana, Mamou, LA 70554)

20



Savoy Medical Management Group, Inc

Savoy Medical Management Group, Inc (a nonprofit organization) was determined to be a component unit but is not presented in the accompanying financial statements The organization is a nonprofit organization incorporated on November 11, 2009 The organization was formed for the purpose of providing medical and health related services to communities in and around Mamou, Parish of Evangeline, Louisiana, and to those persons or individuals seeking healthcare and is exempt from mcome taxes under Section 504(c)(3) of the Intemal Revenue Code. The sole member of this corporation shall be the Town of Mamou, Louisiana, which shall act through individuals duly elected and then serving on the Town of Mamou Council The management and affairs of this corporation shall be at all times under the direction of the Board of Tmstees which shall at all times consist of at least three (3) but no more than nine (9) members appointed by the sole Member's goveming body The Board of Trustees may include at least two (2) members of the sole Member's goveming body.

Complete financial statements for the component unit may be obtained at the entity's administrative office (Savoy Medical Management Group, Inc, 801 Poinciana, Mamou, LA 70554)

Savoy Medical Center & Savoy Care Center Nursing Home

The Savoy Medical Center and the Savoy Care Center Nursing Home were determined to be component units but are not presented in the accompanying financial statements The Town of Mamou owns the equipment and physical plant operated by Savoy Medical Center, which includes the Town of Mamou Caner Center Building Fund, and Savoy Care Center Nursing Home, Until December 31, 2009, the Town leased the premises, which included the land, buildings, fixtures, improvements and equipment for the hospital facility to Rapides Healthcare System, LLC d^/a Savoy Medical Center for $765,000 annually Effective January 1, 2010, Savoy Medical Management Group, Inc became the successor-in-interest to Rapides Healthcare System, LLC The annual lease payment was fixed at a sum of $765,000 due in monthly installments of $63,750 However, the monthly lease payments for the initial six months did not become due in full until July 2010 Beginning in July 2010, monthly lease payments were scheduled to resume No lease payments were received dunng the fiscal year ended December 31, 2010 Lease payments resumed in January of 2011, however, due to cash flow issues, only five lease payments were made during 2012.

Effective December 31, 2010, operational control of the cancer treatment facility owned by the Town of Mamou and reported in the Town of Mamou Cancer Center Building Fund was transferred to Savoy Medical Center The Town maintains insurance coverage on this facility

21



The Town also leases the premises, which includes the land, buildings, fixtures, improvements and equipment for the nursing home facility to MH3F Healthcare Management, LLC d/b/a Savoy Care Center Nursing Home for $244,530 The lessees agree to pay all taxes, charges, costs and expenses including maintenance, repairs and utilities of the facilities

Complete financial statements for the component unit may be obtained at the entity's administrative office (Savoy Medical Center, 801 Poinciana, Mamou, LA 70554)

These primary govemment financial statements of the Town of Mamou do not include the financial data of the component units described above. These component units' financial data is necessary for reporting in conformity with generally accepted accounting principles.

B Basis of Presentation

Govemment-Wide Financial Statements (GWFS)

The statement of net position and statement of activities display information about the reporting govemment as a whole They include all funds of the reporting entity, except fiduciary funds and component units that are fiduciary in nature The statements distinguish between govemmental and business-type activities. Govemmental activities generally are financed through taxes, intergovemmental revenues, and other non-exchange revenues Business-type activities are financed in whole or in part by fees charged to extemal parties for goods or services.

The statement of activities presents a comparison between direct expenses and program revenues for the business-type activities of the Town and for each function of the Town's govemmental activities Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function Program revenues include (a) fees, fines, and charges paid by the recipients of goods or services offered by the programs, and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program Revenues that are not classified as program revenues, including all taxes, are presented as general revenues

Fund Financial Statements

The accounts of the Town are organized and operated on the basis of funds. A fund IS an independent fiscal and accounting entity with a separate set of self-balancing accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements

22



The various funds of the Town are classified into two categories govemmental and proprietary The emphasis on fund financial statements is on major govemmental and enterpnse funds, each displayed in a separate column A fund is considered major if it is the primary operating fund of the Town or meets the following criteria

a. Total assets, liabilities, revenues, or expenditures/expenses of that individual govemmental or enterpnse fiind are at least 10 percent of the corresponding total for all funds of that category or type, and

b Total assets, liabilities, revenues, or expenditures/expenses of the individual govemmental or enterprise fiind are at least 5 percent of the corresponding total for all govemmental and enterprise funds combined

The major funds of the Town are described below

Govemmental Funds -

The General Fund is the general operating fund of the Town. It is used to account for all financial resources except those required to be accounted for in another fund

The Sales Tax Special Revenue Fund is used to account for the proceeds of two separate one percent sales and use taxes that are legally restncted to expenditures for specific purposes

Additionally, the Town reports the following fund types

Proprietary Funds -

Proprietary funds are used to account for ongoing organizations and activities that are similar to those often found in the private sector. The measurement focus is based upon the determination of net income, financial position, and cash flows The following are the Town's propnetary fund types

Enterprise funds

Enterpnse funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the goveming body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or (b) where the goveming body has decided that periodic determination of revenues eamed, expenses mcuned, and/or net mcome is appropriate for capital maintenance, public policy, management control, accountability, or other purposes The Town applies all applicable principles under the Govemmental Accounting Standards Board (GASB) in accounting and reporting for Its enterpnse fund The Town's enterprise fiind is the Utility Fund

23



Intemal service funds

Intemal service funds are used to account for the financing of goods or services provided by one department or agency or other departments or agencies of the govemmental unit, or to other govemmental units, on a cost-reimbursement basis The Town's intemal service is the Group Health Self Insurance Fund

Measurement Focus/Basis of Accounting

Measurement focus is a term used to descnbe "which" transactions are recorded within the various financial statements Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied.

Measurement Focus

On the govemment-wide statement of net position and the statement of activities, both govemmental and business-type activities are presented using the economic resources measurement focus as defined in item b below

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

a All govemmental funds utilize a "current financial resources" measurement focus Only current financial assets and liabilities are generally included on their balance sheets Their operating statements present sources and uses of available spendable financial resources during a given period These funds use fiind balance as their measure of available spendable financial resources at the end of the period

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

Basis of Accounting

In the govemment-wide statement of net position and statement of activities, both govemmental and business-type activities are presented using the accmal basis of accounting. Under the accmal basis of accounting, revenues are recognized when eamed and expenses are recorded when the liability is incurred or economic asset used Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place

24



Govemmental fund financial statements are reported using the current financial resources measurement focus and the modified accmal basis of accounUng Revenues are recognized as soon as they are both measurable and available Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period For this purpose, the govemment considers revenues to be available if they are collected within 60 days of the end of the current fiscal period Expenditures (including capital outlay) generally are recorded when a liability is incurred, as under accmal accounting However, debt service expenditures are recorded only when payment is due

The proprietary funds utilize the accmal basis of accounting Under the accmal basis of accounting, revenues are recognized when eamed and expenses are recorded when the liability is incurred or economic asset used

Program revenues

Program revenues included in the Statement of Activities are denved directly from the program itself or from parties outside the Town's taxpayers or citizenry, as a whole, program revenues reduce the cost of the function to be financed from the Town's general revenues

D Assets, Deferred Outflows. Liabilities, Deferred Inflows and Equity

Cash, interest-bearing deposits, and investments

For purposes of the statement of net position, cash and interest-bearing deposits include all demand accounts, savings accounts, and certificates of deposits of the Town

Under state law, the Town may invest in United States bonds, treasury notes, or certificates Investments are stated at amortized cost

For the purpose of the proprietary funds statement of cash flows, "cash and cash equivalents" include all demand and savings accounts, and certificates of deposit or short-term investments with an onginal maturity of three months or less

Receivables

In the govemment-wide statements, receivables consist of ail revenues eamed at year-end and not yet received Major receivable balances for the govemmental activities include ad valorem and sales and use taxes Business-type activities report customer's utility service receivables as their major receivables Uncollectible ad valorem taxes or utility service receivables are recognized as bad debts at the time information becomes available which would indicate the uncoUectibility of the particular receivable At December 31, 2012 and 2011, an allowance for ad valorem taxes was considered unnecessary due to immateriality. The allowance for customers' utility receivables was $203,508 and $192,337 at

25



December 31, 2012 and 2011, respectively Unbilled utility service receivables resulting from utility services rendered between the date of meter reading and billing and the end of the month, are recorded at year-end

Interfund receivables and payables

During the course of operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as "due to and from other funds." Short-term interfund loans are reported as "interfund receivables and payables."

Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds " Interfund receivables and payables between funds within govemmental activities are eliminated in the statement of net position

Inventory

Inventory of the Utility Fund consists of natural gas being held as storage on behalf of the Town by the Louisiana Municipal Gas Authonty and is valued at a pnce per MCF determined by the Louisiana Municipal Gas Authority Supplies and parts on hand are considered immaterial and have been accounted for using the purchase method

Prepaid Items

Payments made to vendors for services that will benefit periods beyond December 31,2012, are recorded as prepaid items.

Restncted Assets

Restncted assets include cash and interest-bearing deposits of the general fund and proprietary fund that are legally restricted as to their use The restncted assets in the utility fund are related to the utility meter deposits The restricted assets in the general fund are related to contingent liabilities ansing out of workman's compensation claims in existence at the time the Town purchased the hospital

Capital Assets

Capital assets, which include property, plant, equipment, and infrastmcture assets, are reported in the applicable govemmental or business-type activities columns in the govemment-wide or financial statements Capital assets are capitalized at historical cost or estimated cost if historical is not available Donated assets are recorded as capital assets at their estimated fair market value at the date of donation The Town maintains a threshold level of $1,000 or more for capitalizing capital assets

26

TOWN OF MAMOU, LOUISL\NA


The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized Prior to July 1, 2001, govemmental funds* infrastmcture assets were not capitalized These assets have been valued at estimated histoncal cost

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

Buildings 40 years Equipment 5 years Utility system and improvements 20-40 years Infrastructure 20 years

In the fund financial statements, capital assets used in govemmental fund operations are accounted for as capital outlay expenditures of the govemmental fund upon acquisition Capital assets used in proprietary fund operations are accounted for the same as in the govemment-wide statements

Long-term debt

The accounting treatment of long-term debt depends on whether the assets are used in govemmental fiind operations or proprietary fund operations and whether they are reported in the govemment-wide or fund financial statements.

All long-term debt to be repaid from govemmental and business-type resources are reported as liabilities in the govemment-wide statements The long-term debt consists of utility meter deposits payable and contingent liabilities arising out of workman's compensation claims in existence at the time the Town purchased the hospital

Long-term debt for govemmental fiinds is not reported as liabilities in the fiind financial statements The debt proceeds are reported as other financing sources and payment of principal and interest reported as expenditures The accounting for proprietary fund long-term debt is the same in the fund statements as it is in the govemment-wide statements

Compensated Absences

Sick leave is eamed at the rate of one day for each month worked, with a limit of twelve days per year An employee may not carry over or accumulate more than forty-eight days of sick leave from one year to another Sick leave is not payable at termination of employment Vacation leave is eamed over an anniversary year basis at the rate of one day for each month worked, with a limit of twelve days per year An employee may not carry over or accumulate vacation leave from one employment anniversary date to another

27



For fund financial statements, vested or accumulated leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a current fiind liability of the govemmental fiind that will pay it In the govemment-wide statements, amounts of vested or accumulated leave that are not expected to be liquidated with expendable available financial resources are recorded as long-term debt

For fund financial statements, vested or accumulated leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a current fiind liability of the govemmental fund that will pay it In the govemment-wide statements, amounts of vested or accumulated leave that are not expected to be liquidated with expendable available financial resources are recorded as long-term debt.

Deferred Outflows of Resources and Deferred Inflows of Resources

In some instances, the GASB requires a govemment to delay recognition of decreases in net position as expenditures until a fiiture period In other instances govemments are required to delay recognition of increases in net position as revenues until a future penod. In these circumstances, deferred outflows of resources and deferred inflows of resources result from the delayed recognition of expenditures or revenues, respectively There were no deferred outflows of resources and deferred inflows of resources as of December 31,2012

Equity Classifications

In the govemment-wide statements, equity is classified as net position and eH in three cnmnonents displayed in three components

Invested in capital assets, net of related debt - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, constmction, or improvement of those assets

Restncted - Consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Constraints may be placed on the use either by (1) extemal groups such as creditors, grantors, contributors, or laws or regulations of other govemments, or (2) law through constitutional provisions or enabling legislation

Unrestncted - Net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in either of the other two categories of net position.

28



In the fund statements, govemmental flind equity is classified as fund balance Fund balances of the govemmental fiinds are classified as follows

a Nonspendalbe - amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact

b Restricted - amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are extemally imposed by creditors, grantors, contnbutors, or the laws or regulations of other govemments

c Committed - amounts that can be used only for specific purposes determined by a formal decision of the Town's Mayor and Board of Aldermen, which is the highest level of decision-making authonty for the Town Commitments may be established, modified, or rescinded only through ordinances or resolutions approved by board members

d Assigned - amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes

e Unassigned - all other spendable amounts.

When an expenditure is incurred for the purposes for which both restricted and unrestricted fund balance is available, the Town considers restncted funds to have been spent first When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Town considers amounts to have been spent first out of committed funds, then assigned fiinds, and finally unassigned funds, as needed, unless the Town has provided otherwise in its commitment or assignment actions

Proprietary fund equity is classified the same as in the govemment-wide statements

E. Revenues, Expenditures, and Expenses

Operating Revenues and Expenses

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

29



Expenditures/Expenses

In the govemment-wide financial statements, expenses are classified by function for both govemmental and business-type activities.

In the fund financial statements, expenditures are classified as follows

Govemmental Funds - By Character Proprietary Fund - By Operating and Nonoperating

In the fund financial statements, govemmental fiinds report expenditures of financial resources Proprietary funds report expenses relating to use of economic resources.

Interfund Transfers

Permanent reallocations of resources between funds of the reporting entity are classified as interfund transfers For the purposes of the statement of activities, all interfund transfers between individual govemmental funds have been eliminated

Revenue Restrictions

The Town has vanous restrictions placed over certain revenue sources from state or local requirements The primary restricted revenue sources include*

Revenue Source Legal Restnctions of Use

Sales tax See Note 3 Gas, water and sewer revenue Utility operations

The Town uses unrestricted resources only when restricted resources are fully depleted

Budget and Budgetarv Accounting

The Town follows these procedures in establishing the budgetary data reflected in the financial statements

1 The Town Clerk prepares a proposed operating budget for the fiscal year and submits it to the Mayor and Board of Aldermen not later than fifteen days prior to the beginning of each fiscal year

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

30



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

4 After the holding of the public heanng and completion of all action necessary to finalize and implement the budget, the budget is adopted prior to the commencement of the fiscal year for which the budget is being adopted.

5 Budgetary amendments involving the transfer of fimds from one department, program or fimction to another or involving increases in expenditures resulting from revenues exceeding amounts estimated require the approval of the Board of Aldermen

6 All budgetary appropnations lapse at the end of each fiscal year

7 Budgets for all funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgeted amounts are as originally adopted or as amended by the Board of Aldermen. Such amendments were not material in relation to the onginal appropriations.

H Capitalization of Interest Expense

It IS the policy of the Town of Mamou to capitalize material amounts of interest resulting from borrowings in the course of the constmction of capital assets in the Propnetary Fund At December 31, 2012 there was no capitalized interest recorded on the books

I Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting penod Actual results could differ from those estimates

J Reclassifications

Certain previously reports amounts for the year ended December 31, 2011 have been reclassified to conform to the December 31, 2012 classifications

31



(2) Ad Valorem Taxes

Ad valorem taxes attach as an enforceable lien on property as of January 1 of each year Taxes are levied by the Town in September or October and are actually billed to taxpayers in December. Billed taxes become delinquent on January I of the following year. The Town bills and collects its own property taxes Property tax revenues are recognized when levied to the extent that they result in current receivables

For the year ended December 31, 2012, taxes of 19 75 mills were levied on property with assessed valuations totaling $8,845,050 and were dedicated as follows*

General corporate purposes 7,30 mills Streets and recreation maintenance 12,45 mills

Total 19 75 mills

Total taxes levied were $174,670 Taxes receivable at December 31, 2012 were $80,057

(3) Sales and Use Tax

A. Proceeds of the 1% sales and use tax levied by the Town of Mamou (2012 collections $333,698) are dedicated for any lawful corporate purposes of the Town

B, Proceeds of the 1% sales and use tax levied by the Town of Mamou in 1991 (2012 collections $333,698) are dedicated to the following purposes

Thirty-five percent (35%) for any lav^l corporate purposes of the Town, ten percent (10%) for inducing and attracting commerce, industry and tourism in the Town, including the acquisition and improvement of land and buildings there for, and fifty-five percent (55%) for constmcting, acquinng, improving and /or extending any work of capital improvement for the Town

(4) Cash, Interest-Bearing Deposits

Under state law, the Town may deposit funds within a fiscal agent bank organized under the laws of the State of Louisiana, the laws of any other state in the Union, or the laws of the United States, The Town may invest in certificates and time deposits of the state banks organized under Louisiana law and national banks having pnncipal offices in Louisiana, At December 31, 2012, the Town had cash and interest-bearing deposits (book balances) totaling $2,021,685 as follows*

Demand deposits $ 88,497 Money market accounts 1,601,691 Time deposits 331,497

Total $ 2,021,685

32



Custodial credit nsk for deposits is the risk that in the event of the failure of a depository financial institution, the Town's deposits may not be recovered or will not be able to recover the collateral secunties that are in the possession of an outside party These deposits are stated at cost, which approximates market Under state law, these deposits, (or the resulting bank balances) must be secured by federal deposit insurance or similar federal security or the pledge of securities owned by the fiscal agent bank The market value of the pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agent bank These secunties are held in the name of the pledging fiscal agent bank by a holding or custodial bank that is mutually acceptable to both parties The following is a summao' of deposit balances (bank balances) at December 31, 2012, and the related federal insurance and pledged securities*

Bank balances

Insured

Uninsured and collateral held by pledging bank not in Town's name

Total

$ 2,086,430

$ 861,548 1,224,882

$ 2,086,430

(5) Receivables

Receivables at December 31,2012 of $347,579 consist of the following.

Accounts Unbilled utility Allowance for uncollectible accounts Ad valorem Franchise tax Interest Other

Totals

Govemmental Activities $ -

-

-

80,057 35,839

18 159

$ 116,073

Business type Activities $361,606

73,192 (203,508)

-

-

8 208

$231,506

Total $361,606

73,192 (203,508)

80,057 35,S39

26 367

$ 347,579

(6) Due from Other Govemmental Units

Amounts due from other govemmental units of $4,233 at December 31, 2012 consisted of the following

General Fund* State of Louisiana - beer tax revenues receivable Evangeline Pansh Police Jury - state prisioner housing reimbursement

$ 1,965 2,268

$ 4,233

33



(7) Restncted Assets

A Restncted assets in the General Fund pertain to prior year hospital revenue claims and consisted of the following at December 31, 2012

Worker's compensation claims deposits $ 100,000

B Restricted assets in the Enterpnse Utility Fund consisted of the following at December 31, 2011.

Customers'deposits $ 218,575

(8) Capital Assets

Capital asset activity for the year ended December 31,2012 was as follows:

Govemmental activities Capital assets not being depreciated

Land Ptaza mural Constmction in progress

Other capital assets Buildmgs and improvements Infrastructure

Equipment, fiimiture and fixtures

Vehicles

Totals

Less accumulated depreciation Buildings and improvements Infrastructure

Equipment, furniture and fixtures

Vehicles

Total accumulated depreciation

Govemmental activities. capital assets, net

Balance

01/01/12

$ 269,650

13,503 -

3,068,283

1,906,426

571,695 212,324

6,041,881

793.633 963,756 482.220 134.860

2.374,469

$ 3,667,412

Additions

$ -

19,625

51,970 90.194

5.079 46.610

213,478

85.199 48,788 23.700 27.854

185,541

$ 27.937

Deletions

$ --

---

13,002

13,002

---

12.033

12,033

$ 969

Balance

12/31/12

$ 269,650

13,503 19,625

3.120,253 1.996,620

576.774

245,932

6,242,357

878.832 1,012.544

505.920 150,681

2,547,977

$ 3,694,380

34



Balance 01/01/12

$ 63,910 -

455,037 2,409,272 3,944,134 1,266,773

8,139,126

452.775 1.777.130 1,894,288

576,033

4,700.226

$ 3,438.900

Additions

$ 15,250

-

39,450 -

46.200

100,900

2.262 73,654

117,385 39.129

232,430

$ (131,530)

Deleuons

$ -

. --

27,067

27,067

_

--

27.067

27.067

$

Balance 12/31/12

$ 63,910 15,250

455,037 2,448.722 3,944.134 1,285.906

8,212,959

455,037 1.850,784 2.011,673

588,095

4.905,589

$ 3.307,370

Business-type activities Capital assets not being depreciated

Land * sewer system Construction m progress

Other capital assets Gas system Water system Sewer system Machinery and equipment

Totals Less accumulated depreciation

Gas system Water system Sewer system Machinery and equipment

Total accumulated depreciation

Busmess-type activities, capital assets, net

Depreciation expense was charged to govemmental activities as follows

General govemment Police Highways and streets Culture and recreation Judicial

Total depreciation expense

Depreciation expense was charged to business-type activities as follows.

Gas Water Sewer

Total depreciation expense

$ 30,458 34,671 44,743 73.611 2,058

$ 185,541

$ 16,867 75,526

140,037

$ 232,430

35



(9) Accounts and Other Pavables

The accounts and other payables consisted of the following at December 31, 2012*


$ 71,600 14,877 19,919

$ 106,396

Business-type Activities

$ 55,600 2,809 3,987

$ 62,396

Total

$ 127,200 17,686 23,906

$ 168,792

Accounts payable Salaries payable Compensated absences payable

Totals

(10) Long-Term Debt

Revenue bonds - In 1999, the Town issued $5,000,000 of revenue bonds for the constmction of the Savoy Cancer Center facility. On January 19, 2006, the Town issued $3,289,000 of revenue bonds, Series 2006, to reftind $3,170,000 of revenue bonds. Series 1999 These bonds are reported on the financial statements of Savoy Medical Management Group, Inc , a component unit of the Town (see Note 1) At December 31,2012 there were $720,000 of bonds outstanding.

(11) Employee Retirement

A Social Security System

Employees of the Town of Mamou who are not eligible to participate in any other retirement system are members of the Social Security System The Town and Its employees contribute a percentage of each employee's salary to the System (7.65 percent contributed by the Town, 5.65 percent contnbuted by the employee) The Town's contributions during the years ending December 31, 2012 and 2011 amounted to $85,064 and $88,841, respectively.

B Municipal Police Employees Retirement Svstem of Louisiana (System)

Plan Description - All full-time police department employees engaged in law enforcement are eligible to participate in the System Employees who retire at or after age 50 with at least 20 years of creditable service or at or after age 55 with at least 12 years of creditable service are entitled to a retirement benefit, payable monthly for life, equal to 3 1/3% of their final-average salary for each year of creditable service Final average salary is the employee's average salary over the 36 consecutive or joined months that produce the highest average. Employees who terminate with at least the amount of creditable service stated above, and do not withdraw their employee contributions, may retire at the ages specified above and receive the benefit accmed to their date of termination The System also provides death and disability benefits Benefits are established by state statute

36



The System issues an annual publicly available financial report that includes financial statements and required supplementary information for the System That report may be obtained by writing to the Municipal Police Employees Retirement System of Louisiana, (225)929-7411.

Funding Policy - Plan members are required by state statute to contribute 10 0% of their annual covered salary and the Town is required to contribute at an actuarially determined rate The current rate is 31% of annual covered payroll. The contribution requirements of plan members and the Town are established and may be amended by state statute As provided by R S 11 103, the employer contributions are determined by actuarial valuation and are subject to change each year based on the results of the valuation for the prior fiscal year The Town's contnbutions to the System for the years ending December 31, 2012 and 2011 were $8,613 and $5,346, respectively, equal to the required contributions for each year

(12) Litigation and Claims

At December 31, 2012, the Town is involved in several lawsuits claiming damages. In the opinion of the Town's legal counsel, the only exposure to the Town would be any costs in defense of the lawsuits with no liability to the Town in excess of insurance coverage The Town also has worker's compensation claims that are unlikely to be settled due to the individuals having permanent disabilities and are currently receiving medical care The only exposure to the Town would be administrative fees with no liability in excess of insurance coverage See Note 14.

(13) Risk Management

A. Commercial Insurance Coverage

The Town is exposed to risks of loss in the areas of health care, general and auto liability, property hazards and workers* compensation All of these risks are handled by purchasing commercial insurance coverage There have been no significant reductions in the insurance coverage during the year.

B Group Self-Insurance

Effective July 1, 1998, the Town established a self-insurance health plan to account for and finance its uninsured risk of loss for commercial group health insurance The plan is administered by Southern Benefit Services, and the plan year ends on June 30 of each year Under this plan, Lloyds of London agreed to reimburse the Town for specific incurred claims related to any one covered employee or dependent which exceeds the retention by the Town, which is $30,000 For the plan year ending June 30, 2012, Lloyds of London will reimburse the Town for aggregate incurred claims during the period of insurance less any amounts paid with respect to the specific incurred claims No claims will be reimbursed until all claims in excess of the specific attachment point of $355,596 exceed a comdor of the greater of the product of the enrollment times the factors of $45 05 per employee or the

37



annual comdor of $20,000 Monthly payments are calculated based on the number of employees with single coverage multiplied by a funding factor of $646 and the number of employees with family coverage multiplied by a funding factor of $1,604. The Town currently funds the plan based upon actual claims incurred instead of the funding factors discussed above

The General and Utility Funds of the Town participate m the program and make payments to the Self-Insurance Fund based upon amounts needed to pay pnor and current year claims The claims liability of $37,859 reported in the fiind at December 31, 2012 is based on the loss that is probable at the date of the financial statements and the amount of the loss that can be reasonably estimated. The Town currently does not discount its claims liabilities

Reconciliation of Claims Liabilities

Claims payable, January 1, 2012 $ 45,899

Insurance claims incurred for year ended December 31,2012 206,390 Payments made for the year ended December 31,2012 (214,430)

Claims payable, December 31, 2012 $ 37,859

Claims payable of $37,859 at December 31,2012 was determined as follows:

A Claims incurred prior to December 31,2012 and paid in January 1, 2013 through March 31, 2013 $ 34,545

B Provision for claims incurred but not reported 3,314

Total claims payable $ 37,859

The provision for claims incurred but not reported of $3,314 was calculated utilizing historical information adjusted for current trends

(14) Contingent Liabilities

At December 31, 2012, the Town had contingent liabilities in the amount of $25,000 consisting of workers* compensation claims which are the result of the prior operations of the hospital facility owned by the Town The Town has certificates of deposit totaling $100,000 held as secunty for these claims

38



(15) Enterpnse Fund Contracts

The Town of Mamou, under contract dated January 1, 1997, is required to purchase its natural gas from the Louisiana Municipal Gas Authority. The contract automatically renews annually unless notice is given in writing six months in advance The Town purchased natural gas dunng the year ended December 31, 2012 in the amount of $255,797 of which $34,995 was owed for purchases for the month of December 2012

(16) Segment Information for the Enterprise Fund

The Town of Mamou maintains one enterprise fimd with three departments, which provide gas, water, and sewerage services Segment information for the year ended December 31, 2012, was as follows

Operating revenues

Operating expenses Depreciation Other


Operating income

Gas Department

$801,401

16,867 505,073

521,940

$279,461

Water Department

$ 532,076

75,526 272,914

348,440

$183,636

Sewer Department

$468,519

140,037 252,001

392,038

$ 76,481

Total Enterprise

Fund

$1,801,996

232,430 1,029,988

1,262,418

$ 539,578

(17) Compensation of Town Officials

A detail of compensation paid to the Mayor and Board of Aldermen for the year ended December 31,2012 follows

Ricky Fontenot, Mayor

Aldermen Leisa Deshotel Freddie Matthew Scott Christ Charles Reed Robin Young

Total

$ 24,000

9,000

9,000

9,000

9,000

9,000

$ 69,000

39



(18) Interfiind Receivables/Payables

A. A summary of interfund receivables and payables at December 31, 2012 follows

Interfund Interfund Receivables Payables

Major govemmental funds General Fund Sales Tax Fund

Proprietary funds Enterprise Fund

Group Health Self-Insurance Intemal Service Fund

Total

The receivable in the Group Health Self-Insurance Fund is for amounts owed from various other funds for their share of health insurance premiums. The amounts due from the General Fund to various other funds are for short-term loans.

B Transfers consisted of the following at December 31,2012

Transfers In

$ -

97,881

42,552

27,881

$ 168,314

$ 168,314 -

-

.

$ 168,314

Transfers Out

$ 587,314

587,314

1,320,330

$1,907,644

Major govemmental fiinds General Fund $ 1,907,644 Sales Tax Special Revenue Fund -

Total govemmental funds 1,907,644

Proprietary funds Enterprise Fund -

Total $1,907,644

Transfers are used to (a) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and to (b) use unrestncted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations

(19) Operating Lease Revenues

The Town has negotiated the lease of Savoy Medical Center and Savoy Care Center Nursing Home. Effective January 1. 2010, the Town agreed to lease Savoy Medical Center to Savoy Medical Management Group, Inc for an initial pnmary term of 5 years beginning January 1, 2010 with options for four additional terms of five years each In the lease agreement addendum the Town

40



agreed to defer the monthly lease payments of $63,750 for a period of six months beginning January I, 2010 to help the new operators (Savoy Medical Management Group, Inc) build working capital. The Town received all lease payments in 2011 and five lease payments in 2012

Under the Savoy Care Center Nursing Home agreement, the Town will receive $18,525 per month thm March 2010 and $20,378 beginning in Apnl 2010 on a month-to-month basis commencing on Febmary 1, 2005 Beginning in Apnl 2013. the Town will receive $36,200 per month through March 2018

(20) Economic Dependencv

The Town of Mamou owns a hospital facility and nursing home within the Town The hospital IS leased to Savoy Medical Management Group, Inc operating as Savoy Medical Center for $765,000 per year (See Note 1 A 4) The nursing home is leased to MH3F Healthcare Management, LLC operating as Savoy Care Center Nursing Home for $244,530 per year These leases provide a significant portion of the Town's total revenues If the Town were to cease receiving these lease revenues, the Town's ability to continue to provide services at present levels would be threatened

(21) New Accounting Pronouncements

Dunng the fiscal year ended December 31, 2012, the Town of Mamou, Louisiana adopted GASB 63, "Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position," which provides guidance for reporting deferred outflows of resources, deferred inflows of resources, and net position in a statement of financial position and related disclosures The statement of net assets is renamed the statement of net position and includes the following elements assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position

In Apnl 2012, the Govemmental Accounting Standards Board (GASB) approved Statement No 65. "Items Previously Reported as Assets and Liabilities" This statement clarifies the appropnate reporting of deferred outflows of resources and deferred inflows of resources to ensure consistency in financial reporting Also in Apnl 2012, the Govemmental Accounting Standards Board (GASB) approved Statement No 66, "Technical Corrections -- 2012'*. This statement enhances the usefulness of financial reports by resolving conflicting accounting and financial reporting guidance that could dimmish the consistency of financial reporting The provisions of GASB Nos. 65 and 66 must be implemented by the Town of Mamou, Louisiana for the year ending December 31, 2013 The effect of implementation on the Town of Mamou, Louisiana's financial statements has not yet been determined

(22) Subsequent Event Review

The Town has evaluated subsequent events through June 21, 2013, the date which the financial statements were available to be issued.

41

REQUIRED SUPPLEMENTARY INFORMATION

42

TOWN OF MAMOU, LOUISIANA General Fund

Budgetary Comparison Schedule For the Year Ended December 31. 2012

Revenues Taxes Licenses and permits Intergovemmental Fines and forfeits Miscellaneous

Total revenues

Expenditures. Current -


Public safety Police


Capital outlay

Total expenditures

Deficiency of revenues over expenditures

Other financing sources (uses) Transfers from -

Utility Fund Sales Tax Fund

Transfer to component unit


Excess of revenues and other sources over expenditures and other uses

Fund balance, beginning

Fund balance, ending

Budget Onginal

$ 355,000 $ 145,000 88,000

420,000 1,035,000

2,043,000

Final

355.000 145.000 146.000 450.000 733.410

1,829,410

Actual

$ 331,610 146,563 146,091 431,322 714,435

1,770,021

Variance with Final Budget

Positive (Negative)

$ (23,390) 1,563

91 (18.678) (18.975)

(59,389)

745,000 987,851 917,172 70,679

1,030,000 471,000 179,000 108.000 15.000

2,548,000

(505,000)

173,000 802,000

(445,000)

530,000

25,000

22,720

$ 47.720

1,035,000 458,000 151,800 78,400 51,603

2.762,654

(933,244)

1.219.555 497,490

(445,000)

1,272,045

338,801

22,720

$ 361,521

1.011.765 375.034 134.131 64,960

101,176

2,604,238

(834,217)

1,320,330 587,314

(474,700)

1,432.944

598,727

22,720

$ 621,447

23.235 82,966 17,669 13,440

(49,573)

158,416

99.027

100,775 89.824

(29.700)

160,899

259,926

_

$ 259,926

43

TOWN OF MAMOU, LOUISIANA Sales Tax Special Revenue Fund

Budgetary Comparison Schedule For the Year Ended December 31,2012

Revenues Taxes Miscellaneous -

Interest Other

Total revenues


General govemment Capital outlay

Total expenditures

Budget Onginal

$ 636,480

2,000

638,480

Final

$670,140

2,000 11.000

683,140

Actual

$667,396

1.866 14,125

683,387

Vanance with Final Budget

Positive (Negative)

$ (2,744)

(134) 3,125

247

57,480 238,000

44,140 237,000

295,480 281,140

53.259 112,352 165,611

(9.119) 124,648 115,529

Excess of revenues over expenditures 343,000 402,000 517,776 115,776

Other financing uses Transfers out (802,000) (597,490) (587.314) 10.176

Deficiency of revenues over expenditures and other uses



(459.000) (195,490) (69,538) 125,952

826,325 826.325 826,325

$ 367,325 $630,835 $ 756,787 $ 125,952

44

OTHER SUPPLEMENTARY INFORMATION

45

OTHER FEVANCUL INFORMATION

46

TOWN OF MAMOU. LOUISIANA

Statement of Net Position December 31, 2012

With Comparative Totals for December 31. 2011

2012

ASSETS Current assets.

Cash and interest-bearing deposits Receivables, net Due from other govemmental units Inventory Prepaid items

Total current assets

Noncurrent assets. Restncted assets -

Cash and interest-bearing deposits Capital assets, net

Total noncurrent assets

Total assets


Accounts and other payables Claims payable Advances from grantors Intemal balances


Noncurrent liabilities. Customers deposits payable Contingent liabilities

Total noncurrent liabilities

Total liabilities

NET POSITION Invested in capital assets, net of related debt Unrestricted

Total net position


$1,307,415 116.073

4,233 -

51,296 1,479.017

100,000 3.694,380 3.794,380

5.273.397

106.396 37,859 7,390

42,552

194,197

-25,000 25,000

219.197

3,694,380 1,359,820

$5,054,200

Business-Type Activities

$ 395,695 231,506

-23,225 13,175

663.601

218,575 3,307,370 3,525,945

4,189.546

62,396 --

(42.552)

19,844

218,575 -

218,575

238.419

3,307,370 643.757

$3,951,127

Total

$1,703,110 347.579

4.233 23.225 64.471

2.142,618

318,575 7,001,750

7,320,325

9,462.943

168,792 37,859 7,390 -

214,041

218,575 25,000

243,575

457.616

7,001.750 2.003.577

$9,005,327

2011 Totals

$1,752,864 400.349

1.864 22.110 64.511

2,241,698

311,400 7,106,312 7,417,712

9,659,410

188.555 45.899

--

234,454

211,400 25,000

236,400

470,854

7,106.312 2.082,244

$9,188,556

47


Balance Sheet Govemmental Funds December 31, 2012

With Comparative Amounts as of December 31, 2011

2012

ASSEIS

Cash Interest-bearing deposits Receivables

Taxes Accmed interest Other

Due from other funds Due from other govemmental units Prepaid expenses Restricted cash*

Interest-bearing deposits Inventory

Total assets

General

$ 149,080 485.649

115,896 18

159 -

4,233 40.728

100.000 -

$ 895.763

Sales Tax Special

Revenue

$ -666.690

---

97,881 -

-

--

$764,571

Total

$ 149.080 1.152.339

115.896 18

159 97.881 4.233

40.728

100.000 -

$1,660,334

2011

$ 375,804 963,192

101,567 32

63,975 130,201

1.864 39.720

100.000 423

$1,776,778

LIABILITIES AND FUND BALANCES

Liabilities Accounts and other payables Compensated absences payable Advances from grantors Due to other funds

Total liabilities

Fund balances -Nonspendable Restricted - sales tax dedications Unassigned (deficit)

Total fiind balances

Total liabilities and fund balances

$

1

86.083 19,919

-

168,314

274,316

40.728 -

580,719

621,447

895,763

$ 394 -

7.390 -

7.784

_

756.787 -

756.787

$764,571

$ 86,477 19,919 7,390

168,314

282,100

40.728 756.787 580.719

1,378,234

$1,660,334

$ 89.457 22,167

-

816.109

927.733

40,143 826,325 (17,423)

849,045

$1,776,778

48

TOWN OF MAMOU. LOUISL\NA

Statement of Revenues, Expenditures, and Changes in Fund Balances-Govemmental Funds

For the Year Ended December 31,2012 With Comparative Actual Amounts for the Year Ended December 31, 2011

2012

Revenues: Taxes Licenses and permits Intergovemmental Fines and forfeits Miscellaneous

Total revenues



Public safety Police


Capital outlay

Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources (uses) Transfers m Transfers out Transfers in (out) - component unit


Net changes in fund balances



General

$ 331,610

146,563

146,091

431.322

714,435

1.770.021

Sales Tax

Special

Revenue

$ 667.396

-

-

-

15.991

683,387

Total

$ 999,006

146,563

146,091

431,322

730,426

2.453,408

2011

$1,005,247

145,922

103,470

408,341

1,144,324

2.807.304

917,172 53,259 970,431 815,094

1,011.765

375,034

134.131

64.960

101.176

2,604,238

(834,217)

1.907.644

(474.700)

1.432.944

598,727

22,720

$ 621,447

112,352

165,611

517,776

(587,314)

(587,314)

(69,538)

826,325

$ 756.787

1,011,765

375.034

134,131

64,960

213,528

2,769.849

(316,441)

1,907,644

(587.314)

(474,700)

845,630

529.189

849.045

$1,378,234

1,066,046

399,318

149,317

90.012

117,970

2,637,757

169,547

663.415

(267.718)

(1.400)

394,297

563,844

285,201

$ 849.045

49


Budgetary Comparison Schedule - Revenues For the Year Ended December 31, 2012

With Comparative Actual Amounts for the Year Ended December 31. 2011

2012

Budget

Original Final Actual

Variance with Fmal Budget

Positive 2011 (Negative) Actual

Taxes Ad valorem Franchise -

Electric Telephone Cable TV

Total taxes

Licenses and permits Occupational licenses Permits

Total licenses and permits

Intergovemmental Federal grants -

USDA Dept of Justice ARRA

State of Louisiana -Beer taxes Highway maintenance DARE State grants

Housing of state prisioners Housing Authority

Total intergovemmental

Fines and forfeits

Fines and court costs

Miscellaneous Interest Hospital lease revenue Hospital receivable revenue Nursing home lease revenue Hospital workers compensation recoveries Recreation complex Other sources

Total miscellaneous

Total revenues

$ 190,000

128.000 16.000 21,000

355.000

140.000 5,000

145.000

45.000 5.000

7.000 5.000

20,000 --

6.000 88.000

420,000

2.000 765,000

-244,000

-9,000

15,000

1.035,000

$2,043,000

$ 190,000

128,000 16.000 21,000

355,000

140,000 5,000

145.000

39,500 4,500

7.000 5,000

20,000 17,000 47,000 6,000

146,000

450.000

2,000 382.522

-244.530

-10.000 94,358

733,410

$1,829,410

$ 180.670

114,792 15.864 20.284

331,610

142.773 3.790

146.563

37.260 4,413

8,135 5,000

18.961 16.957 49.365 6,000

146,091

431,322

2,073 318,750

468 244.550

61.680 9.200

77,714 714,435

$1,770,021

$ (9.330)

(13,208) (136) (716)

(23,390)

2,773 (1,210)

1,563

(2.240) (87)

1,135 -

(1.039) (43)

2,365 -

91

(18.678)

73 (63,772)

468 20

61,680 (800)

(16,644)

(18,975)

$ (59.389)

$ 193.800

127,264 15,995 21.391

358,450

145,303 619

145,922

--

7,686 5,000

20,028 20,000

-6.000

58,714

408,341

2,254 765,000

490 244,530

32.450 10.290 24,001

1,079,015

$2,050,442

50


Budgetary Comparison Schedule - Expenditures For the Year Ended December 31,2012

With Comparative Actual Amounts for the Year Ended December 31.2011

2012

Current General govemment -

Administrative Mayor and council salanes Other salaries and wages Group insurance Insurance Payroll taxes Materials and supplies Advertisements and recordings Legal fees Accounting and auditing Professional fees Miscellaneous Utilities and telephone Repairs and maintenance Training Hospital workers' comp claims

Total administrative

Public safety -Police:

Salaries Payroll taxes Retirement contribution Group insurance Utilities and telephone Insurance Auto Gas and repairs Professional fees Court and lab fees Miscellaneous Supplies Training

Total police department

Budget Original

$ 69,000 213,000 150,000 50,000 25.000 28,000

5,000 20,000 49.000 58.000 15.000 17,000 13,000 3,000

30.000

745,000

447,000 40,000

5,000 200.000

36,000 118,000 68,000 15,000

1,000 40,000 18,000 42,000 -

1,030,000

Final

$ 69,000 196,000 90,000 50,000 25,000 26,000

4,000 176,000 47,000

173,000 10,000 15,000 14.000 4,000

88.851

987,851

480.500 43.000

8.500 140.000 36.000

111,000 71.000 20,000

1,000 50,000 33,000 39,000

2,000

1.035,000

Actual

$ 69,000 189,923 69.151 44,766 22.354 28,072

7,802 169,526

13,030 171,838 24,014 14,398 11,472 3.573

78.253

917,172

457,449 42.792

8,613 138,302 32,993

135.204 60,514 19,726

980 50,672 23.952 38,498

2,070

1,011,765


Positive (Negative)

$ -6,077

20,849 5,234 2,646

(2.072) (3,802) 6,474

33.970 1.162

(14.014) 602

2,528 427

10,598

70,679

23,051 208

(113) 1,698 3,007

(24,204) 10,486

274 20

(672) 9,048

502 (70)

23,235

2011 Actual

$ 69,000 209,751

88.325 48.448 25.498 33.482

8,933 12.301 13.580 72,038 25,979 16.422 10,026 4,093

85,908

723,784

453.588 42,225

5,346 189,267 35.346

133,179 59.458 29.864

125 45,558 26.909 43,195

1,986

1,066,046

(contmued)

51


Budgetary Comparison Schedule - Expenditures (Continued) For the Year Ended December 31,2012

With Comparative Actual Amounts for the Year Ended December 31, 2011

2012

Highways and streets -Salanes Payroll taxes Maintenance and supplies Lighting Group insurance Telephone Insurance Miscellaneous Auto Equipment rental Professional fees

Total highways and streets

Culture and recreation -Salaries Payroll taxes Repairs and maintenance Matenals and supplies Auto Utilities and telephone Insurance Miscellaneous Cleaning and janitonal

Total culture and recreation

Budget Ongmal

110,000 10,000 36,000 57,000

150.000 3,000

55,000 17,000 31,000

-2.000

Fmal

119,000 10,000 67,000 53,000 87,000 3,000

75,000 17,000 25,000

-2,000

Actual

111,643 10,121 64,083 47,594 29,637

3,469 70,591 15,570 20,295

378 1,653


Positive (Negative)

7,357 (121)

2.917 5,406

57,363 (469)

4,409 1.430 4,705 (378) 347

2011 Actual

110,103 9,696

37,894 55,467 75,707

2,924 67,011 16,018 22,824

1,051 623

471,000

8,000 1.000

14.000 14.000

1.000 49.000 91.000 1.000

179,000

458.000

14,000 14,000 1,300

48,000 70,000 1,000 3,500

151,800

375,034

17,104

14,283 991

47,005 51,640

13 3,095

134,131

82.966

(3,104) (283) 309 995

18.360 987 405

17,669

399,318

8,039

772 10,194

14,923 1,444

50,724 58,009

12 5,200

149,317

(continued)

52


Budgetary Companson Schedule - Expenditures (Continued) For the Year Ended December 31,2012

With Comparative Actual Amounts for the Year Ended December 31, 201

2012

Judicial -Salaries Payroll taxes Insurance Group insurance Matenals and supplies Repairs and maintenance Telephone Professional fees Miscellaneous

Total judicial

Capital outlay: General govemment

Building improvements

Public safety -Police-

Vehicles and equipment

Culture and recreation Building improvements

Total capital outlay

Total expenditures

Budget Original

62,000 4.000 1.000

35,000 3,000 1,000 2,000 --

108,000

-

15,000

-

15,000

$2,548,000

Final

37.000 3,000 1,000

19,000 1,400 -

2,000 15,000

-

78,400

-

51,603

-

51,603

$2,762,654

Actual

35,960 3.062

551 9,878 1,442

95 1,972

12,000 -

64.960

51,970

49,206

-

101,176

$2,604,238

Variance with Final Budget

Positive (Negative)

1,040 (62) 449

9,122 (42) (95) 28

3.000 -

13.440

(51,970)

2.397

-

(49.573)

$158,416

2011 Actual

52.152 4.450

730 25.236 3.652 1,325 2,262 -205

90,012

-

22.841

9.950

32.791

$2,461,268

53

TOWN OF MAMOU. LOUISIANA Special Revenue Fund

Sales Tax Fund

Budgetary Comparison Schedule For the Year Ended December 31.2012

With Comparative Actual Amounts forthe Year Ended December 31. 2011

2012

Revenues Taxes Intergovemmental Miscellaneous

Interest Appropriation from -

Mamou Gravity Drainage Distnct #5 Other

Total revenues

Budget Original

$ 636.480 -

2.000

-16.000

654,480

Final

$670,140 -

2.000

-11,000

683,140

Actual

$667,396 -

1,866

-14.125

683,387


Positive (Negative)

$ (2.744) -

(134)

-3,125

247

2011 Actual

$ 646,797 44,756

1.400

17,925 45.984

756.862


General govemment Audit and accounting Miscellaneous Industry and tounsm inducement

Total general govemment

Capital outlay -General govemment

Roofat city hail Public safety

Vehicles Building improvements

Highways and streets Street improvements

Culture and recreation Walking trail Equipment Plaza pavilhon improvements Improvements to ballpark parking tots

Total capital outlay

Total expenditures

Excess of revenues over expenditures

Other financing sources (uses) Transfers from (to) -

Utility Fund General Fund


Excess (deficiency) of revenues over expenditures and other uses

Fund balance, beginning

Fund balance, ending

-12.480 45.000

57.480

-

.

-13.140 31.000

44.140

-

6.890 13,369 33,000

53,259

-

.

(6,890) (229)

(2.000)

(9.119)

-

.

6.280 12.885 72,145 91.310

17,940

12,050 85.000

85.000

60,000 8.000

238,000

295.480

359,000

(802,000)

(802,000)

(443,000)

826,325

$ 383.325

85,000

85,000

60.000 7,000

237,000

281.140

402.000

(100,000) (497.490) (597.490)

(195.490)

826.325

$630,835

19.625

58.700

31.544 2.483

112,352

165,611

517,776

(587,314)

(587,314)

(69.538)

826.325

$ 756.787

65.375

26.300

28.456 4.517

124.648

115,529

115.776

100,000 (89,824)

10.176

125.952

-

$ 125.952

-

17,925

17.264 20.000 85.179

176,489

580,373

(267,718)

(267,718)

312,655

513,670

$ 826,325

54

TOWN OF MAMOU, LOUISIANA Enterprise Fund

Utility Fund

Schedule of Number of Utility Customers (Unaudited)

December 31, 2012

Records maintained by the Town indicated the following number of customers were being serviced dunng the month of December 2012 and 2011

Department 2012 2011

Gas (metered) Water Sewerage

1,027 1,717 1,267

1,030 1,709 1,258

55


Schedule of Insurance In Force (Unaudited)

December 31,2012

Description of Coverage

Workmen's compensation -Employer's liability- policy limit Bodily injury by accident Bodily injury by disease

Surety bonds -Fidelity bond

Commercial general liability -Premises/operations Products/completed operations Boiler and Machinery - equipment Medical payments per person Medical payments per accident Fire legal liability

Law enforcement oflficers* comprehensive liability

Automobile liability

Public ofTicials' errors and omissions liability

Commercial fire and extended coverage -Buildings Contents Boiler and machinery - equipment Vehicle physical damage

Coverage Amounts

Statutory 500,000 100,000 100,000

160,000

500,000 500,000 525,000

1,000 10,000 50,000

500,000

500,000

500,000

6,261.300 3.400.000 2,025,000

103,385

56


Combined Schedule of Interest-Bearing Deposits - All Funds December 31.2012

Major Govemmental Funds: General Fund -

Certificate of Deposit - Worker's Comp Security Savings Account - Hospital Revenue Interest-bearing checking - General Interest-bearing checking - Payroll Interest-beanng checking - Insurance Contingency

Total General Fund

Special Revenue Funds -Sales Tax Fund

Interest-bearing checking - Sales Tax Fund Interest-bearing checking - Construction Account

Total Sales Tax Fund

Total Govemmental Funds

Proprietary Fund Utility Fund

Operating Account -Interest-bearing checking Certificate of Deposit

Water Revenue Fund -Interest-bearing checking Interest-bearing checking

Meter Deposit Fund -Certificate of Deposit Interest-bearing checking

Total Proprietary Fund

(C) (J) (J) (J) (S)

(S) (S)

Interest Rate

0 65% 0.40% 0.15% 0 15% 0 20%

0 15% 0.20%

Matunty Date

11/21/13 N/A N/A N/A N/A

N/A N/A

Total Book Value ,

$ 100,000 127,376 333,754 23,692

827

585,649

651,811 14,879

666,690

1,252,339

(C) (J)

(S) (S)

(S) (J)

0.15% 0.75%

0.15% 0 20%

0 35% 0.15%

N/A 03/16/13

N/A N/A

07/28/13 N/A

143.512 48,934

71,995 31,976

182,563 135,289

614,269

Total Interest-bearing Deposits and Investments - All Funds $1,866,608

Certificates of deposit, savings account and interest-bearing checking accounts with —

(C) Citizens Bank, Ville Platte, Louisiana (J) Jeff Davis Bank, Mamou, Louisiana (S) Sabine State Bank, Many, Louisiana

57


Comparative Statement of Net Position Proprietary Funds

December 31, 2012 and 2011


Cash Interest-beanng deposits Receivables -

Accounts, net Unbilled utility receivables Accrued interest receivable Other

Due from other funds Inventory - natural gas Prepaid items

Total current assets Noncurrent assets

Restricted assets -Interest-beanng deposits

Capital assets, net of accumulated depreciation Total noncurrent assets

Total assets

LIABILITIES Current liabilities*

Accounts and other payables Compensated absences payable Claims payable


Noncurrent liabilities Customers' deposits

Total liabilities

NET POSITION Invested in capital assets, net of related debt Unrestncted

Total net position

Busmess-type Activities Enterpnse Fund

Govemmental Activities Intemal Service Fund

2012 2011

1 395,694

1 406,126

2012 2011

$ 5,996 $ 7,741

158,098

73,192

8 208

42,552

23,225

13,175

706,153

218.575

3,307,370

3.525.945

4,232,098

58,409 3,987

-62,396

218,575

280,971

3,307,370

643,757

$3,951,127

148,390

85,376

67 225

658,027

21,687

13,122

1,333,021

211.400

3,438.900

3,650.300

4,983,321

68,686 8,245

-76,931

211,400

288,331

3,438,900

1,256,090

$4,694,990

----

27.881

-10,568

44,445

.

--

44,445

-37.859

37.859

.

37,859

_

6,586

$ 6,586

---717

27,881

-11,669

48,008

.

--

48,008

-45,899

45,899

.

45,899

,

2,109

$ 2,109

58


Comparative Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds

Years Ended December 31,2012 and 2011

Business-type Activities-Enterprise Fund

2012 2011

Govemmental Activities-Intemal Service Fund 2012 2011

Operating revenues Charges for services Permits, reconnections and penalties Miscellaneous


Operating expenses* Gas department expenses Water department expenses Sewerage department expenses Depreciation expense Amortization expense Self insurance expenses


Operating income

Nonoperating revenues (expenses) Interest income

Income before contributions and transfers

Capital contributions

Income before transfers

Transfers out

Change in net assets

Net position, beginning

Net position, ending

$1,724,748 63,729 13,519

1.801,996

576.467

(1,320.330)

(743.863)

4,694.990

$3,951,127

$1,745,946 68.354 12,614

1,826,914

$361,940 $682,596

786,399

(395,697)

390,702

4,304,288

$4,694,990

361,940 682,596

505,073

272,914

252,001

232,430

1,262,418

539,578

1,889

541.467

35,000

604,996

301.441

288.196

202,480

4,942

1,402,055

424,859

3,022

427.881

358,518

357,463

357,463

4.477

4,477

621,031

621,031

61,565

61,565

4,477 61.565

4,477 61,565

2,109 (59,456)

$ 6,586 $ 2,109

59

TOWN OF MAMOU, LOUISIANA Enterprise Fund

Utility Fund

Departmental Analysis of Revenues and Expenses Years Ended December 31, 2012 and 20 U

Totals Gas Water Sewer

Operating revenues Customers service charges Permits, reconnections and penalties Miscellaneous


Operating expenses: Salanes Payroll taxes Group Insurance Gas purchased Maintenance and supplies Safe water dnnking fee Lab fees Depreciation expense Amortization expense Utilities Telephone Truck operation Bad debt expense Insurance Miscellaneous Professional fees Training


Operating income

2012

$1,724,748 63,729 13,519

1,801,996

195,906 16,769 79,033

255,797 152.793

4,752 5,700

232,430 -

133.927 6,618

28,378 10,061 82,891 6,510

47,373 3,480

1,262,418

$ 539,578

2011

51,745,946 68,354 12,614

1,826,914

220,936 18,200

126,177 323,353 140,377

4,752 5,670

202,480 4,942

135,697 6,589

29,277 22,179 92,200 7,626

55,724 5,876

1,402,055

$ 424,859

2012

$764,226 28,041 9,134

801,401

77,619 6,702

24,698 255,797 56,337

--

16,867 -

5,704 3,365

12,655 4,941

26,428 4,077

26,750 -

521,940

$279,461

2011

$ 772,079 30,076 8,906

811,061

82,298 6,749

37,853 323.353

52,859 --

7,969 -

6.524 3,199

11,011 9.758

28,679 4,624

35.545 2,544

612,965

$ 198,096

2012

$511,072 19.119 1,885

532.076

54,885 4,643

24,698 -

55,591 4,752 1,175

75,526 -

74.555 -

7,409 3,119

27,501 1,237

11,254 2,095

348,440

$183,636

2011

$516,803 20.506

1.416 538,725

58,769 4,743

37,853 -

56,385 4,752 -

75,372 -

79,272 -

8.009 7,406

27,611 1,177

13,942 1,522

376,813

$161,912

2012

$449,450 16,569 2,500

468,519

63,402 5,424

29,637 -

40,865 -

4,525 140,037

-53,668 3.253 8.314 2,001

28,962 1,196 9,369 1,385

392,038

$ 76,481

2011

$457,064 17,772 2,292

477,128

79,869 6,708

50.471 -

31.133 -

5.670 119,139

4,942 49,901 3,390

10,257 5,015

35,910 1,825 6,237 1,810

412,277

$ 64,851

60

COMPLIANCE

AND

INTERNAL CONTROL

61

C Burton Kolder CPA' Russell F Champegne CPA* Victor R Slaven. CPA" Gerald A. ThitxxJeaux. Jr CPA* Rat)ertS Carter CPA* Arthur R Mixon CPA' Penny Angelle Scnjogins CPA CtvisttneC Ooucet, CPA

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS

Wanda F Arcement, CPA.CVA Allen J LaBry, CPA Albert R. Leoer CPA.PFS CSA* Marshall W Gutdry, CPA Stephen R Moore Jr CPA,PFS.CFP* ChFC' James R Roy, CPA Robert J Metz. CPA Alan M Taylor. CPA Kelly M Doucet CPA Cheryl L Bartley CPA Mandy B Self CPA PaulL Detcambre. Jr .CPA Knstin B Dauzat. CPA Matthew E Margaofio CPA JaneR Hebert CPA Bryan K. Joubert. CPA Stephen J Anderson. CPA W Jeffrey Lowry, CPA

Retired Conrad 0 Chapman CPA* 2006 Tynes E Mwon, Jr CPA 2011 P Troy Courville CPA* 2013

' A Pfufnsional AccounUng Corporation

OFFICES

183 South Beadle Rd Lafayette LA 70508 Phone (337) 232-4141 Fax (337) 232-8660

450 East Main Street New Iberia, LA 70560

Phone (337) 367-9204 Fax (337) 367-9208

113 East Bndoe SL 200 South Main Street Breaux Bndge LA 70517 Abbeville LA 70510 Phone (337) 332-4020 Phono {337) 893-7944 Fax (337) 332-2867 Fax (337) 893-7946

1234 David Dr Ste 203 Morsan City. LA 70380 Phone (985) 364-2020 Fax (985) 384-3020

408 West Cotton Street Ville Platte LA 70586 Phorw (337) 36^-2792 Fax (337) 363-3049

332 West Sixth Avenue Oberiin LA 70655 Phone (337) 63W737 Fax (337) 63»-4S68

1013 Mam Street Franklin LA 70538

Phono (337) 828-0272 Fax (337) 828-0290

133 East WaddilSL Marksville LA 71351

Phone (318) 253-9252 Fax (318) 253-8681

1428 Metro Dnve Alexandria. LA 71301

Phone (318) 442-4421 Fax (318) 442-9833

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON

AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNK4ENTAUDITING STANDARDS

WEBSrTE WWW KCSRCPAS COM



We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the govemmental activities, the business-type activities, and each major fund of the Town of Mamou, Louisiana, as of and forthe year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the Town of Mamou, Louisiana's basic financial statements and have issued our report thereon dated June 21, 2013 The report on the Town of Mamou, Louisiana was adverse because the financial statements do not include financial data of all component units of the Town of Mamou, Louisiana. Except as discussed in the preceding sentence, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Town of Mamou, Louisiana's intemal control over financial reporting (intemal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of Mamou, Louisiana's intemal control Accordingly, we do not express an opinion on the effectiveness of the Town of Mamou, Louisiana's intemal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis A material weakness is a deficiency, or a combination of deficiencies, in intemal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in intemal control that is less severe than a material weakness, yet important enough to merit attention by those charged with govemance.

Member of* AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 62

Member of SOCIETY OF LOUISIAAW

CERTIFIED PUBLIC ACCOUNTANTS

Our consideration of intemal control was for the limited purpose descnbed in the first paragraph of this section and was not designed to identify all deficiencies in intemal control that might be material weaknesses or, significant deficiencies Given these limitations, during our audit we did not identify any deficiencies in intemal control that we consider to be material weaknesses However, material weaknesses may exist that have not been identified

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Town of Mamou, Louisiana's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and matenal effect on the determination of financial statement amounts However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Govemment Auditmg Standards.

The purpose of this report is solely to descnbe the scope of our testing of intemal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's intemal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditmg Standards in considering the entity's intemal control and compliance Accordingly, this communication is not suitable for any other purpose Although the intended use of this report may be limited, under Louisiana Revised Statute 24*513, this report is distributed by the Legislative Auditor as a public document.


Lafayette, Louisiana June 21,2013

63

TOWN OF MAMOU. LOUISIANA

Summary Schedule of Current and Prior Year Audit Findmgs and Corrective Action Plan


Fiscal Year Fmdmg Initially

Ref No Occurred Description of findmg

CURRENT YEAR (12/31/12) -

Intemal Control

There were no intemal control findmgs to be reported

Compliance

There were no compliance findmgs to be reported

Management Letter

12-1 (ML) 2006

Corrective Action Taken

A continuing significant gas loss occurred Despite efforts to locate and repair gas leaks, this loss has not significantly decreased from pnor years The Town should investigate possible reasons for the significant gas loss and contmue efforts to reduce the loss

Corrective Action Planned

Name of Anticipated Contact Completion Person Date

The Town will continue to investigate possible reasons for the mcreasing gas loss and contmue efforts to reduce the loss

Guy Pucheu, Town Clerk

12/31/13

PRIOR YEAR(12/31/11)--

Intemal Control

II-I(IC) 2011

Compliance

11-2(C) 2011

The Town did not have adequate controls m place to ensure compliance with the Budget Law, as specified in 11-2(C) below

The Town did not amend the Sales Tax Special Revenue Fund budget m accordance with LSA-RS 39 13n(A)(2) that states when total actual expenditures and other uses plus projected expenditures and other uses for the remainder of the year are exceeding the total budgeted expenditures by five percent or more, the budget must be amended Total expenditures exceeded budgeted expenditures by 41% or $47,340

Yes

Yes

(continued)

64


Summary Schedule of Current and Prior Year Audit Findings and Corrective Action Plan (Contmued)


Ref No

Fiscal Year Fmdmg Initially

Occurred Description of fmding

Corrective Action Taken

PRIOR YEAR(12/31/n)~

Management Letter

11-3(ML) 2006 A continuing significant gas loss occurred Despite efforts to locate and repair gas leaks, this loss has not significantly decreased from pnor years The Town should investigate possible reasons for the significant gas loss and contmue efforts to reduce the loss

11-4(ML) 2011 The Town should take measures to replenish the fund balance of the General Fund Current fund balance is $22,720 The Town should have a fund balance level that can sustain its operations for at least two months, assuming no incoming revenues The Town should evaluate General Fund revenues and expenditures to determine where revenues could be increased or expenditures decreased in order to replenish the fund balance

Corrective Action Planned

Name of Contact Person

Anticipated Completion

Date

No See current year finding 12-1 (ML)

Yes

65

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