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1 2,',i NORTHMONROESUBDIVISIONsEWERAGEDISTRICT#1 Ouachltap~trishPoliceJury Monroe,Louisiana A*ofandFortheyearEndedDecember31,201 AUDITREPORT document,ac:opyofthe~eporthasbens!jfj!'~itle(ih lhel~tity~;l(jotherapi,ropriatepublicof[i(i',s,lhu Underprovisionsofstatelaw,thisreportisapublic apropriate,atheoficeoftheparishclelkolcoult I/q~(~l[iS~)v~i!E!i)!eIC/tpi!',:i;l~;p('(:ti/~lO[~}i'b(~lOI Rougeoficeoithe!eg]:;~:hq:Auditolund,wheie ReleaseDate~:)/Jd/(~
2 NORTHMONROESUBDIVISIONSEWERAGEDISTRICT#1 ComponentUnitFinancialStatementsAsofandFortheYearEnded WithNuplenamtalInformationSchedules December31,201 INDEPENDENTAUDITOR'SREPORT 1-2 ProprietaryFund-EnterpriseFund: BalanceShet(AlFundTypesandAcountGroups) 3 ScheduleofRevenues,ExpensesandChangesinRetainedEarnings ScheduleofCashFlows 4 5 NotestotheFinancialStatements 6-1 ScheduleofCompensationPaidBoardMembers IndependentAuditor'sReportonComp"'ianceandonInternalControlover FinancialStatementsPerformedinAcordanceWithGovernment AuditingStmdc~ds ScheduleofVmdingsandQuestionedeosl~fortheyearended December31,201
3 APROFESIONALACOUNTINGCORPORATION 2908CameronStret,SuiteC JIMIESELF,CPA Phone(318~323-46S6Faxf318~ Monroe,LA71201 P T BoardofComisioners NorthMonroeSubdivisionSewerageDistrict#1 Monroe,Louisiana June18,202 IhaveauditedtheacompanyinggeneralpurposefinancialstatementsofNorthMonroe SubdivisionSewerageDistrict#1,acomponentunitofTheOuaehitaParishPoliceJury,asofand fortheyearendeddecember31,201,aslistedinthetableofcontents."laesegeneralpurpose financialstatementsaretheresponsibilityofthedistrict'smanagement.myresponsibilityisto expresanopiniononthesegeneralpurposefinancialstatementsbasedonmyaudit. IconductedmyauditinacordancewithauditingstandardsgeneralyaceptedintheUnitedStates ofamerica.thosestandardsrequirethatiplanandperformtheauditobtainreasonable asuranceaboutwhetherthegeneralpurposefinancialstatementsarefreofmaterialmistatement. Anauditalsoincludesasesingtheacountingprinciplesusedandsignificantestimatesmadeby management,aswelasevaluatingtheoveralfinancialstatementpresentation.ibelievethatmy auditprovidesareasonablebasisformyopinion. Inmyopinion,thegeneralpurposefinancialstatementsreferedtoabovepresentfairly,inal materialrespects,thefinancialpositionofthenorthmonroesubdivisionseweragedistrict#1as ofdecember31,201,andtheresultsofitsoperationsandcashflowsofitsproprietaryfundtypes fortheyearthenendedinconformitywithacountingprinciplesgeneralyaceptedintheunited StatesofAmerica. Myauditwasmadeforthepurposeoforminganopiniononthefinancialstatementstakenasa whole.thefinancialinformationlistedasuplementalinformationschedulesinthetableof contentsispresentedforptuposesofaditionalanalysis,andisnotarequiredpartofthefinancial statementsofnorthmonroesubdivisionseweragedistrict#1.suchinformationhasben subjectedtotheauditingproceduresapliedintheauditofthefinancialstatementsand,inmy opinion,isfairlypresentedinalmaterialrespect.,;inrelationtothefinancialstatementstakenasa whole.
4 APROFESIONALACOUNTINGCORPORATION 2908CameronStret,SuiteC JIMIFSELF,CPA Phone(318) Fax(318)38-0"/24 Monroe,LA71201 InacordancewithGovementAuditingStandards,IhavealsoisuedareportdatedJune18, 202,onmyconsiderationofNorthMonroeSuhdivisionSewerageDistrict#l'sinternalcontrol structureandareportdatejune18,202,onitscompliancewithcertainprovisionsoflaws, regulations,andgrants. JIMIESELF,CPA JUNE18,202
5 NORTIMONROESEWERAGESUBDIVISIONDISTRICT#1 OUACITAPARISIPOLICEJURY Monroe,Louisiana ENTF,RPRISEFUND BalanceShet,December31,201 ASETS Curentasets: Cash(Note2) AcountsReceivable TotalCurentAsets RestrictedAsets: (:ashtotalrestrictedasets Property,PlantandEquipment: Property,PlantandEquipment I,es:AcumulatedDepreciation Netproperty,plant,andequipment TOTALASEI~:,IABI,ITIESANDFUNDEQUITY Liabilities: CurentI,lablitiesPayablefromCurentAsets: AcruedInterestPayable NotesPayable TotalCurentLiabilitiesPayablefromCurentAsets LongTermLiabilities RavenaBondsPayable TotalLongTermLiabilities TotalLiabilities: FundEquity: RetainedEarnings:ReservedforBondPayment RetainedEarnings:Unreserved RetainedEarnings:TotalFundEquity TOTAl.LIABILITIESANDFUNDEQUITY 4,131 12,696 16, ,365 1,020, , ,43 896,625 Theacompanyingnotesareanintegralpartofthistatement, 8,873 10,0 18, ,0 518,0 536,873 52, , , ,625
6 NORI'IMONROESI3WERAGESUBDIVISIONDISTRICT# OUACItlTAPARISHPOLICEJURY Monroe,Louisiana PROPRI'TARYFUND-ENTERPRISEFUND SlalemenlofRevenues,Expensesand ChangesinRetainedEarnings ForTheYearEndedDecember3I,201 OPERATINGREVENUES: SERVICEINCOME TOTALOPERATINGREVENUES OPERATINGEXPENSES: BILINGEXPENSE CtlEMICALS DEPRECIATION INSURANCE LABORATORYEXPENSE LEGAL&PROFESIONAl. OFICEXPENSE RFPAIRS~VlAINTENANCE SUPERVISORY~COUNTING UTI.ITIES BONDREOFES TOTALOPERATINGEXPENSES: OPI.'RATINGINCOME(LOS): NONOPERATINGREVENUES(EXPENSES): INTI'RESTINCOME IN']ERESTEXPENSE "IOTALNONOPERATINGREVENUES(EXPENSES): NI'TINCOME(LOS): RH'AINEDEARNINGSATBEGININGOFYEAR: I',I~'I'AINEI)EARNINGSATENDOFYEAR: ~aqp~infomeo 20 63, ,37.0 1, , ,18.0 1, , , , , , , , ,7~J.6! TIlEACOMPANYINGNO1ESAREANINTEGIL,kLPARTOFTHISTATEMENT
7 MONROE,LOUISIANA NORTIMONROESEWERAGESUBDIVISIONDISTRICT#1 PROPRIETARYFUND-ENTERPRISEFUND STATEMENTOFCASIFLOWS FORTIlEYEARENDEDECEMBER31,201 CASHFLOWSFROMOPERATINGACTIVITIES: NE'}INCOMEFROMOPERATINGACTIVITIES: ADJUSTMENTSTORECONCILENETINCOMETONETCASH CHANGESINASETSANDLIABILITIES: DEPRECIATION PROVIDEDBYOPERATINGACTIVITIES INCREASE/DECREASEINACOUNTSRECEIVABLE INCREASE/DECREASEINACOUNTSPAYABI,E CASIFLOWSFROMINVESTINGACTIVITIES TOTALADJUSTMENTS NETCASHUSEDININVESTINGACTIVITIES CAPITALEXPENDITURES CASItFLOWSFROMFINANCINGACTIVITIES NETCASIPROVIDEDFROMFINANCINGACTIVITIES NE']TOTALCASI!PROVIDEDFROMFINANCINGACT][VI'I PAYMENTOFLONG-TERMDEBT NETBOROWINGSFROMBANK CASIANDCASHEQUIVALENTSATBEGININGOFYEAR: CASIANDCASlEQUIVALENTSATENDOFYEAR: INTERESTPAID DEPRECIATION 26,S81 23,463 THEACOMPANYINGNOTESAREANINTEGRALPARTOFTHISTATEMENT QReOcASI!rtOw~ -18,140 23, ,594-12,59-12,59 10,0-4,0-2,05 16,50 6,0~0 14~49s
8 NORTHMONROESUBDIVISIONSEWERAGEDISTRICT#1 AsofandFortheYearEndedDecember31,201 NotesToTheFinancialStatements OFOUACHITAPARISH INTRODUCTION TheNorthMonroeSubdivisionSewerageDistrict#1wasorganizedunderprovisionsofLouisiana revisedstatute(lsa-rs)bytheouachitaparishpolicejuryin1968toprovideaseweragesystemfor aproximately80people.thedistrictisoperatedbyahoardofivecomisioners,apointedbythe OuachitaParishPoliceJury. 1.SUMARYOFSIGNIFICANTACOUNTINGPOLICIES A.BASISOFPRESENTATION Theacompanyingcomponentunitf~acialstatementsoftheNorthMonroeSubdivision SewerageDistrictofOuachitaParishavebenpreparedinconformitywithgeneraly aceptedacountingprindples(gap)asapliedtogovernmentalunits.thegovernmental AcountingStandardsBoard(GASB)istheaceptedstandard-setingbodyforestablishing governmentalaceo~ingandfinancialreportingprinciples. B.REPORTINGENTITY JuryisthefinancialreportingentityforOuachitaParish,Thefinancialreportingentityconsists of(a)theprimarygovernment(policejury),(lo)organizationsforwhichtheprimary Asthegoverningauthorityoftheparish,foreporting~,theOuachitaParishPolice governmentisfinancialyacountable,and(e)otherorganizationsforwhichnatureand significanceoftheirelationshipwiththeprimarygovernmentaresuchthatexclusionwould causethereportingentity'sfinancialstatementstobemisleadingorincomplete. GovementalAcountingStandardsBoardStatementNo.14establishedcriteriafor determiningwhichcomponentunitshouldbeconsideredpartoftheouachitaparishpolice Juryforfinancialreportingpurposes.Thebasiccriterionforincludingapotential componentunitwithinthereportingentityisfinancialac~zotmtability.thegasbhaset forthcriteriatobeconsideredindeterminingfinancialacountability.thiscriteria includes: Apointingavotingmajorityofanorganization'sgoverningbody,and a, b Theabilityofthepolicejurytoimposeitswilonthatorganization and/or Thepotentialfortheorganizationtoprovidespecificfinancial benefitstorimposespecificfinancialburdensonthepolicejury
9 NORTHMONROESUBDIVISIONSEWERAGEDISTRICT#1 OFOUACHITAPARISH NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED) butarefiscalydependentonthepoliejury. Organizationsforwhichfilepolicejurydoesnotapointavotingmajority misleadingifdataoftheorganizationisnotincludedbecauseofthenature Organizationsforwhichtherepotingentityfinancialstatementswouldbe orsignificanceoftherelationship. Becausethepolicejuryhastheauthoritytoperformtheabovethresteps,thedistrictwas determinedtobeacomponentunitoftheouaehitaparishpolicejury,thefinancial reportingentity.theacompanyingfinancialstatementspresentinformationonlyonthe fundsmaintainedbythedistrictandonotpresentinformationonthepolicejury,the generalgovernmentservicesprovidedbythatgovernmentalunit,ortheothergovernmental unitsthatcomprisethefinancialreportingentity. C.FUNDACOUNTING TheNorthMonroeSubdivisionSewerageDistrict#1ofOuachitaParishisorganizedand operatedonafundbasiswherebyaself-balancingsetofacounts(enterprisefund)is operationsarefinancedandoperatedinamanersimilartoaprivatebusinesenterprise, maintainedthatcomprisesitsasets,liabilities,fundequity,revenues,andexpenses.the wheretheintentofthegoverningbodyisthathecost(expenses,includingdepreciation)of providingservicesonacontinuingbasisbefinancedorecoveredprimarilythroughuser charges. D.BASISOFACOUNTING Theacountingandfinancialreportingtreatmentapliedtoafundisdeterminedbyits Withthismeasurementfocus,alasetsandaliabilitiesasociatedwiththeoperationof measurementfocus.theenterprisefundisaecountedforonaflowofeconomic resourcesmeasurementfocusandadeterminationofnetincomeandcapitalmaintenance. thisfundisincludedonthebalanceshet.theenterprisefundusestheacrualbasisof acounting.revenuesarerecognizedwhenearnedandexpensesarerecognizedathetime liabilitiesareincured.theenterprisefund.usesthefolowingpracticesin recordingcertainrevenuesandexpenses: Revenuescomistofincomefromusersofthesewerlineinthedistrict.Bilingis donemonthly,andthepaymentsarecolectedandeposited;interestincomeisa resultofbankacountsbearinginterest. Expensesarereportedwhentheliabilityocurs.Majorexpensesare
10 NORTHMONROESUBDIVISIONSEWERAGEDISTRICT#1 OFOUACHITAPARISH NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED) Supervisory LegalandProfesional 16,353 1,741 Utilities 3629 E.CASHANDCASHEQUIVALENTSANDINVESTMENTS Cashincludesamountsindemandeposits,interest-bearingdemandeposits,andother moneymarketaceoums.cashequivalentsincludeamountsintimedepositsandthose investmentswithoriginalmaturitiesof90daysorles.understatelaw,thedistrictmay depositfundsindemandeposits,interest-bearingdemandeposits,moneymarket acxmnts,ortimedepositswithstatel~mkso~anitedunderlouisianalawandnational bankshavingtheirprincipaloficesinlouisiana. Understatelaw,thedistrictmayinvestinUnitedStatesbonds,treasurynotes,or certificates.theseareclasifiedasinw,~stm~siftheiroriginalmaturitiesexced90days; however,iftheoriginalmaturitiesare90daysorles,theyareclasifiedascash equivalents.thedistricthasnoinvestments. Certainprocedsofthenterprisefundresourcesaresetasideforspedfiepaymentsand areclasifiedonthebalanceshetasrestrictedasetsbecausetheiruseislimitedby aplicablerequirements. Briefly,thefundsandprovisionsrelatingtheretoareasfolows: BondRedemptionFund:Restrictionforanualpaymentofprincipaland interest. thefund,netofacumulatedepreciation.constructionperiodinterestisimaterialandisnot Fixedasetsofthedistrictarevaluedathistoricalcostandareincludedonthebalanceshetof operations.depreciationiscomputedusingtheswaight-linemethodovertheestimatedusefulives ofperiodsfrom5to40years. capitalized.depredationofalexhau~'blefixedasetsischargedasanexpense against H.COMPENSATEDABSENCES Thedistrictdoesnothaveaformaleavepolicy Long-termliabilitiesarerecognizedwithinthenterprisefund.
11 NORTHMONROESUBDIVISIONSEWERAGEDISTRICT#1 OFOUACHITAPARISH NOTESTOTHEFINANCIALSTATEMEN'I~(CONTINUED) J.FUNDEQUITY ContributedCapital Grants,entitlements,orshar~revenuesreceivedthatarerestrictedforthe acquisitionorconstructionofcapitalasetsarerecordedascontributedcapital Contributedcapitalisnotamortized. Reservesrepresenthoseportionsofundequitylegalysegregatedforaspecific futureuse. CASHANDCASHEQUIVALENTS At~ber31,201,thedistric,~hascashandcashequivalents(bokbalances) totaling~ DemandDepo~ asfolows: RestrictedCash _10,365 4,131 Thesedepositsarestatedatcost,wlfichaproxinmtesmarket.Understatelaw,thesedepositsmustbe somredbyfederaldepositinsuranceorthepledgeofsecuritiesownedbythefiscalagentbank.the marketvalueofthepledgedse~mdtiesplusthefederaldepositinmncemustataltimesequalthe amountondepositwiththefiscalagent.thesesecuritiesareheldinthenameofthepledgingfiscal agentbankinaholdingorcustodialbankthatisnmtualyaceptabletobothparties.atdecember31, 201,thed/stricthas$14,4_~indeposits(oalectedbankbalances).Thesedepositsaresecuredfi-om riskby$10,0ofederaldepositinsurance. Eventhoughthepledgeds~uifiesareconsidereduncolatctalized(Category3)undertheprovisions ofgasbstater~t3,/xdsianarevisedstatute39"129imposesastatutoryrequireraentonthe custodialbanktoadvertiseandselthepledgedso:urifieswithin10daysofbeingnotifiedbythedistrict thathefiscalagenthasfailedtopaydeposited~adsupondemand. 3.RECEIVABLES Thefolowingisasumaryofreceivablesat~ber31,201 ClasofReceivable CurentAsets Total Managementhasdeteninedthatheamountsofthereoeivablesthatareuncolectibleareimaterial; 12,696 12,696 therefore,noprovisionforuncolectiblereceivabl.~hasbenincludedinthesefumncialstatements. 9
12 NORTHMONROESUBDIVISIONSEWERAGEDISTRICT#I OFOUACHITAPARISH NOTESTOTHEFINANCIALSTATEMENTS(CONTI[NUED) 4.FIXEDASETS AsununaryofixedasetsatDecember31,201,folows Property,Plant& Equipment 1,020,349 Acumulated Depredation 150,916 Net 869,43 TOTAL PENSIONPLAN Thedistricthasnopensionplanandnosalaries. 6.LONG-TERMLIABILITIES Thefolowingisasumaryoflong-termtransactionsduringtheyear: Long-termliabilitypayableat Totaliability Lescurentportion Long-termliabilitypayableat , "SewerRevenueBonds,Series19oftheNorthMomoeSewerDistrict#1oftheParishofOuachita, State&Louisiana,"$52.0,datedMarch1,19,interestrate,payableinanualinstalments ofvariousamounts,includinginterest;duethefirstdayofmarch. TheanualrequireanentstoamortizealIong-te~mdebtoutstandingasofl)ecmnl~31,19,areas folows:note:noprincipalpaymentwasuntil
13 NORTHMONROESUBDIVISIONSEWERAGEDISTRICT#1 OFOUACHITAPARISH NOTESTOTHEFINANCIALSTATEMENTS(CONTE~VOED) 20O Amount Rate 4,0 9,0 10,0 10,0 1,0 1,0 12,0 12,0 13,0 14,0 14,0 398,0 7.OTHERPOST-EMPLOYMENTBENEFrs None. 8.RELATEDPARTYTRANSACTIONS None. 9.LITIGATIONANDCLAIMS 10.SUBSEQUENTEVENTS None. None. 12.ENCUMBRANCEACOUNTINGISNOTUSED. 1.1
14 SUPLEMENTALINFORMATION
15 NORTHMONROESUBDIVISIONSEWERAGEDISTRICT#1 SuplementalInformationSchedule Monroe,Louisiana AsofandfortheyearthenendedDecember31,201 COMPENSATIONPAIDTOBOARDMEMBERS ConcurentResolutionNo.54ofthe1979SesionoftheLouisianaLegislature. ThefolowingsehoduleofcompensationpaidtoboardmembersispresentedincompliancewithHouse ScheduleofCompensationPaidBoardMembersasofandfortheYearEnded December31,201 HerbertManley-Chairman 10BastropDrive Monroe,LA GeorgeDent 307RayDrive Monroe,LA MichaelGren 203HolyRidge Monroe,LA ScotHolder 205BastropDr Monroe,LA71203 AnitaJones RayDr Monroe,LA
16 APROFESIONALACOUNTINGCORPORATiON JIMIESELF,CPA Phone(318) Fax(318) CameronStret,SuiteC Monroe,LA71201 INDEPENDENTAUDITOR'SREPORTONCOMPLIANCEANDONINTERNALCONTROLOVER FINANCIALREPORTINGBASEDONANAUDITOFINANCIALSTATEMENTSPERFORMED BoardofComisioners NorthMonroeSubdivisionSewerageDistrict#1 Monroe,Louisiana June18,202 IhaveauditedthegeneralpurposefinancialstatementsoftheNorthMonroeSubdivisionSewerage District#1,acomponentunitoftheOuachitaParishPoliceJury,asofandfortheyearended December31,201andhaveisuedmyreporthereondatedJune18,202.Iconductedmyaudit inacordancewithgeneralyaceptedauditingstandardsandthestandardsaplicabletofinancial auditscontainedingovernmentauditingstandards,isuedbythecomptrolergeneralofthe UnitedStates. Compliance Aspartofobtainingreasonableasurancealx)utwhetherNorthMonroeSubdivisionSewerage District#1,Monroe,La.'s,generalpurposefinaneialstatementsarefreofmaterialmistatement,I perfomledtestsofitscompliancewithcertainprovisionoflaws,regulations,contractsandgrants, noncompliancewithwhichcouldhaveadirectandmaterialefectonthedeterminationofinancial statementamounts.however,providinganopiniononcompliancewiththoseprovisionswasnot anobjectiveofmyauditand,acordingly,idonotexpresuchanopinion.theresultsofmytests disclosednoinstancesofnoncompliancethatarerequiredtobereportedundergovernment AuditingStandards. ntemalcontroloverfinancialredortinu Inplaningandperformingmyaudit,IconsideredNorthMonroeSubdivisionSewerageDistrict #1,Monroe,La.'s,internalcontroloverfinancialreportinginordertodeterminemyauditing proceduresforthepurposeofexpresingmyopiniononthegeneralpurposefinancialstatements andnotoprovideasuranceontheintemalcontroloverfinancialreporting.myconsiderationof theintemalcontroloverfinancialreportingwouldnotnecesarilydisclosealmatersintheinternal controloverfinancialreportingthatmightbematerialweakneses.amaterialweaknesisa ].3
17 conditioninwhichthedesignoroperationofoneormoreoftheinternalcontrolcomponentsdoes notreducetoarelativelylowleveltheriskthatmistatementsinamountsthatwouldbematerialin relationtothegeneralpurposefinancialstatementsbeingauditedmayocurandnotbedetected withinatimelyperiodbyemployesinthenomlalcourseofperfomaingtheirasignedfunctions.i notednomatersinvolvingtheinternalcontroloverfinancialreportinganditsoperationthati considertobematerialweakneses. ThisreportisintendedfortheinformationoftheNorthMonroeSubdivisionSewerageDistrict#1's managementandthelouisianalegislativeauditor.however,thisreportisamaterofpublic recordanditsdistributionisnotlimited. Monroe,Louisiana A June18,202
18 AProfesionalAcountingCorporation 2908CameronStret,SuiteC Jimi~Self,CPA Phone(318) Fax(318) Monroe,Louisiana71201 ScheduleofF~ Fort~YearEnded~bor31,201 andqo~doedcosts IhaveauditedthefinancialstatementsofNorthMonroeSubdivisionSewerageDistrictasofand fortheyearendeddecember31,201,andhaveisuedmyreportdatedjuno18,201.1 conductedmyauditinacordancewithgeneralyaceptedauditingstandardsaplicableto financialauditscontainedingovernmentauditingstandards,isuedbythecomptrolergeneral oftheunitedstates.[andtheprovisiansofombcirculara-13.]myauditofthefinancial statementsasofdecember31,201resumedinanunqualifiedopinion(qualified,adverse, diselaime0. SotionISumaryofAuditor'sReports a.reportoninternalcontrolandcompliancematerialtothefinancialstatements InternalControl Compliance MaterialWeakneses_yesXnoReportableConditions_yesXno CompliancenmterialtoFinancialStatements_yesXno ScheduleofPriorYearfindingsfortheyearendedDecember31,20I~-nono
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