(XeroxneCesaqf copiesfromthis. JEFERSONDAVISCENTRALWATERWORKSDISTRICT ANUALFINANCIALREPORTANDINDEPENDENTAUDITORS'REPORTS WELSH,LouISIANA

Transcription

1 DONOTSENDOUT Fit~COPY ;copyandplace,~e~,ackinf L~) (XeroxneCesaqf copiesfromthis JEFERSONDAVISCENTRALWATERWORKSDISTRICT ANUALFINANCIALREPORTANDINDEPENDENTAUDITORS'REPORTS WELSH,LouISIANA FortheyearEndedJune30,197 Jnaerprovisiolso1statelaw,this reportisapubtco'(y:inr',et.,.f. Copyofther';'~c,~,~.~' "'.'~-~;:;c'~;-tsubmit- A entityand~h,:r..'~[- ~" ""'"=l"h':';)'e:~iepl:b!ic Rcm,jco!fic:it~.~',.,~,. ~,:V:q:-:F!pfor tor_a~dwh;:r~,i)'j':!cg~:;~;veaudi- of(iceoftlicn~;rjl;,~iclerkofcourt -= ~'~'lease ~:r:r:,:c,p:i:~tcathe [)ate-1.2:.~ /'IJ; GRAGSON,CAS DAY~GUILOR~,L.L.P CERTIFIEDpUBLICACOUNTANTS

2 TABLEOFCONTENTS INDEPENDENTAUDITORS'REPORT GENEPJ~LpURPOSEFINANCIALSTATEMENTS BA.LANCESHET STATEMENTOFREVENI/ES,EXPENSESANDCHANGES STATEMENTOFCASHFLOWS INRETAINEDEAP/~INGS STATEMENTOFREVENLv~S,EXPENSESANDCHANGESIN NOq~ESTOFINANCIALSTATEMENTS REPORTONCOMPLIANCEBASEDONANAUDITOFGENERAL RETAINEDEARNINGS-BUDGETANDACTUAL purposefinancialstatementsperformedinacordance REPORTONINTERNALCONTROLSTRUCTUREBASEDONAN WITHGOVEPdCMENTAUDITINGSTANDARDS ADU)ITOFGENERALpURpOSEFINANCIALSTATEMENTS PERFORMEDINACORDANCEWITHGOVERNMENTAUDITING STANDARDS page

3 w.georgegrag!~on,c.p.a. RICHARDW.CASIDAY,C.p.A.(APC RAYMONDGUILORY,JR.,C,P.A. JULIAW.pORTU$,C.P.A. CRAIGA,CHILDRES,.C.p.A. CAMUSCAS'ILE,C,p,A, DAWNRED,C.P.A. MICHELEBOURNE,C.p.A. COYVINCENT.C.F,.A. GRAGSON,CASIDAY&GUILI,OI~,Y,L.L.P CERTIFIEDPUBLICACOUNTANTS INDEPENDENTAUDITORS'REPORT BoardofComisioners JefersonDavisCentralWaterworksDistrict Welsh.Louisiana ONELAKfSIDEpLAZA,SUITE7C~, P.O.DRAWER1B47 LAKECHARLES,LOLD[SIANA706OZI;~4t TELEPHONE(318)43S-19~6 FACSIMILE(318~ July25,197 Wehaveauditedtheacompanyingeneralpurposefinancialstatementsof thejeferson])aviscentralwaterworksdistrict,acomponentunitofthe JefersonDavisParishPoliceJury,asofandfortheyearendedJune30, 197.Thesegeneralpurposefinancialstatementsaretheresponsibilityof thejefersondaviscentralwaterworksdistrictmanagement.our responsibilityistoexpresanopiniononthesegeneralpurposefinancial statementsbasedonouraudit. Weconductedourauditinacordancewithgeneralyaceptedauditing standardsandgovernmentauditingstandards,isuedbythecomptrolergeneral oftheunitedstates.thosestandardsrequirethatweplanandperformthe auditobtainreasonableasuranceaboutwhetherthegeneralpurpose financialstatementsarefreofmaterialmistatement.anauditincludes examining,onatestbasis,evidencesuportingtheamountsandisclosuresin thegeneralpurposefinancialstatements.anauditalsoincludesasesing theacountingprinciplesusedandsignificantestimatesmadebymanagement, aswelasevaluatingtheoveralgeneralpurposefinancialstatement presentation.webelievethatourauditprovidesareasonablebasisforour opinion İnouropinion,thegeneralpurposefinancialstatementsreferedto abovepresentfairly,inalmaterialrespects,thefinancialpositionofthe JefersonDavisCentralWaterworksDistrictasofJune30,197,andthe resultsofitsoperationsandcashflowsofitsproprietaryfundtypeforthe yearthenendedinconformitywithgeneralyaceptedacountingprinciples. Ourauditwasconductedforthepurposeoforminganopiniononthe generalpurposefinancialstatementstakenasawhole.thestatementof Revenues,ExpensesandChangesinRetainedEarnings-BudgetandActualis presentedforpurposesofaditionalanalysisandisnotarequiredpartof thegeneralpurposefinancialstatementsofthejefersondaviscentral WaterworksDistrict.Suchinformationhasbensubjectedtotheauditing proceduresapliedintheauditofthegeneralpurposefinancialstatements and,inouropinion,isfairlypresentedinalmaterialrespectsinrelation tothegeneralpurposefinancialstatementstakenasawhole. InacordancewithGovernmentAuditingStandards,wehavealsoisueda reportdatedjuly25,19onourconsiderationofjefersondaviscentral WaterworksDistrict'sinternalcontrolstructureandareportdatedJuly25, 197onitscompliancewithlawsandregulations.

4 JEFERSONDAVISCENTRALWATERWORKSDISTRICT BalanceShet June30,197 ASETS Cash Investments Acountsreceivable $179, Prepaidexpenses Restrictedasets Bondsinkingfund 28,4. 7, $18,015 79,732 30,387 4,386 Bondreservefund Cash Bondcontingencyfund Cash Customerdeposits Cash 51,393 3,205 31,262 Fixedasets(net) Constructionperiodinterest(net Investments 9,402 12,905 4,374 2,658,263 71,704 65,468 2,76,87 $317924$ ,473 67~856 LIABILITIES Acountspayable Acruedliabilities Payablefromrestrictedasets 7,797$ Revenuebond 2,383 6,936 Revenuebondspayable Acruedinterest Customerdeposits 8,370 2,329 28,137 FUNDEQUITY TOTALIABILITIES 71,704 7,397 ~,014,801 1,13_~19_% i~023,171 28,341 1,137,647 69,473 Contributedcapital Retainedearnings Reservedfordebtservice 1,163,3531,23,614 UnreservedTOTALFUNDEQUITY 2,046, , TOT/~LI;~BILITIES/dqDFLTNI)~:QUITY $3&179,24=~4$ ,087,620 52,803 Theacompanyingnotesareanintegralpartofthes%financialstatements CRAGSON,CA~IDAY&GU LORY,L.L.P. CERTIFIEOPUBLICACOUNTANlr6-4-

5 JEFERSONDAVISCENTRALWATERWORKSDISTRICT StatementofRevenues,ExpensesandChangesinRetainedEarnings YearEndedJune30,197 OPERAT][NGREVENUES Charclesforservices Advaloremtaxes(net) Instalatlon~ Penaltiesandreconectfes Miscelaneous Gainonsaleofixedasets TOT/~LOPERATINGREVEh~S OPERATINGEXPENSES Advertising Amortization Autorental Chemicals Com;D~nication Contractlabor Convention Depreciation Dues Fuel Insurance-e~ployes Insurance-other Miscelaneous Ofice Perdiem Postage Printing Profesionalfes Repairsandmaintenance Retirement Salaries Suplies Taxesandlicenses Utilities Watersamples TOTALOPERATINGEXPENSES OPEKATINGINCOME NON-OPERATINGREVENUES(EXPENSES) ~nterestincome ]interestexpense 197, 196 $230, ,920 6,308 5, , ,38 2, , i0,576 1,560 2,845 13,92 8,656 1, , ,10 29,272 3,387 68,768 10,347 5,254 26, ,515 $235,960 12,408 6,916 5,470 7,070 37, ,38 1,950 13,481 2,46856 i13,192 1,246 2,505 i,4 8, ,90 2,428 1,181 3,10 10,593 3,132 67,735 14,141 5, ,923 53,083 75,901 18,508 (1~3,159) (94.651) 14,21 (13,895) (9,684) Theacompanyingnotesareanintegralpartofthesefinancialstatements GRACSDN,CASIDAY&GUIL~ORY.L.L.P. CEFiPTIFIL~DPUBLICAC(~'UNTANTS

6 StatementofRevenues,ExpensesandChangesinRetainedEarnings-Continued JEFERSONDAVISCENTRALWATERWORKSDISTRICT YearEndedJune30,197 $(41,568)$(23,783) RETAI]~EDEARNINGS-BEGINING INCREASEINRETAINEDEAP~NINGS 60,261 18,693 60,261 36,478 RETAINEDEId~NINGS-ENDING s82=~=~69 864,06 827,528 Theacompanyingnotesareanintegralpartofthesefinancialstatements GRAGSON,CASlDAY~GUILORY,L.L.P. CERTIF ~OPUBt.ICACOUNTANTS -6-

7 JEFERSONDAVISCENTRALWATERWORKSDISTRICT StatementofCashFlows YearEndedJune30,197 CASHFbOWSFROMOPER/~TINGACTIVITIES Adjustmentstoreconcileoperating Operatingincome(los) incometonetcashprovidedby $53, operatingactivities Amortization (Increase)decreasein ~[ncrease(decrease)in Acountsreceivable i0,( 2, Prepaidexpenses 38 75, ) 13,192 2, Acountspayable (2, Acruedexpenses Acruedinterestpayable ~ZETCASHFLOWSFROMOPERATING CASHFLOWSFROMCAPITAL~RELATEDFINAIqCING ACTIVITIES 54(204) 1, , , (17 ACTIVITIES Contributionsfromcustomers Procedsfromsaleofixedasets Ac~isitionofixedasets 2,231 Principalpaidonrevenuebonds 3,0 Interestpaidonrevenuebonds NETCASHFLOWSFROMCAPITAL CASHFLOWSFROMINVESTINGACTIVITIES RELATEDFIN2dgCINGACTIVITIES (13,159) (4,203) (7,397) (21,985) (6,460) I19,528)(139,06) 13,895) InterestOninvestments NETINCREASE(DECREASE)INCASHAND 18,508 14,21 CASH/UCDCASHEQUIVALEN~gSATBEGININGOFYE~ CASHEQUIVALENTS 6,672 CASHANDCASHZQUIVALENTSATEICDOFYEAR $ ,56 $ ,270 6,286 Theacompanyingnotesareanintegralpartofthesefinancialstatements GRAGSON,CASIDAY~GUILORY,L.L.P. CERTIFIEDPUeḶIC.ACOUNTANTS -7o-

8 JEFERSONDAVISCENTRALWATERWORKSDISTRICT NotestoFinancialStatements June30,3.97 NOTEA-sUMARyOFSIGNIFICA~TACOiINTINGPOLICIES TheJefersonDavisCentralWaterworksDistrictisapolitical subdivisionofthestateoflouisiana.itwascreatedunderthe provisionsoflouisianarevisedstatues3:381forthepurposeof providingwatertotheruralareaofcentraljefersondavisparish.the districtis~overnedbyaboardofcomisionerscomposedofivemembers apointedbythejefersondavisparishpolicejury. ThefinancialstatementsoftheJefersonDavisCentralWaterworks Districthavebenpreparedinconformitywithgeneralyacepted acountingprinciples(gap)asapliedtogovernment%units.the GovernmentalAcozn%tingStandardsBoard(GASB)istheaceptedstandardsetingbodyforestablishingovernmentalacountingandfinancial reportingprinciples.themoresignificantofthegovernment's acountingpoliciesaredescribedbelow. I.ReportingEntity OASBStatementNo.24establishedcriteriafordeterminingthe governmentalreportingentityandcomponent%nlitsthatshouldbeincluded withinthereportingentity,forfinancialreportingpurposes,in conformancewithgasbstatementno.14,thejefersondaviscentral WaterworksDistrictincludesalfunds,acountgroups,etcetera,that arewithintheoversightresponsibilityofthejefersondaviscentral WaterworksDistrict. Asthegovernin~authority,foreportingpurposes,theJefDavisParish PoliceJuryisthefinancialreportingentity,Thefinancialreporting entityconsistsof(a)theprimarygovernment~(b)organizationsfor whichtheprimarygovernmentisfinancialyacountable,and(c)other organizationsforwhichthenatureandsignificanceoftheirelationship withtheprimarygovernmentaresuchthatexclusionwouldcausethe reportingentity'sfinancialstatementstobemisleadingorincomplete. GovernmentalAcountingStandardsBoardStatementNo.14established criteriafordeterminingwhichcomponent%u~itshouldbeconsideredpart ofthejefdavisparishpolicejuryforfinancialreportingpurposes. Thebasicriterionforincludingapotentialcomponent%u%itwithinthe reportingentityisfinancialaco~itability.thegasbhasetforth criteriatobeconsideredindeterminingfinancialacountability,eased upontheaplicationofthesecriteria,jefersondaviscentral WaterworksDistrictisacomponent:unitoftheJefDavisParishPolice Jury'sreportingentity ĠRAGSOP4,CASIPAY~GUILORY,L.L.I: Continued CERTIF'IEbPUBLICACOUNTANTS -8-

9 JEFERSONDAVISCENTRAJLWATERWORKSDISTRICT NotestoFinancialStatements-Continued June30,197 NOTEA-SUF~4ARYOFSIGNIFICA/~TACODIWTINGPOLICIES-CONTINI/ED 2.Fu2]dAcounting TheJefersonDavisCentralWaterworksDistrictusesafundtoreporton itsfinancialpositionandtheresultsofitsoperations,fund acountingisdesignedtodemonstratelegalcomplianceandtoaid financialmanagementbysegregatingtransactionsrelatingtocertain governmentfunctionsoractivities.afundisaseparateacounting entitywithaself-balancingsetofacounts. ThefolowingfundisusedbytheDistrict EnterpriseFund- rodrietarvfund~roe TheEnterpriseFundisusedtoaco~%tforoperationsthatarefinanced andoperatedinamanersimilartoprivatebusinesenterpriseswhere thecosts(expenses,includingdepreciation)ofprovidingwaterservices tothegeneralpubliconacontinuingbasisisfinancedthroughuser charges. 3.BasisofAcounting Theacountingandfinancialreportingtreatmentapliedtoafundis determinedbyitsmeasurementfocus.alproprietaryfundsareacounted foronaflowofeconomicresourcesmeasurementfocus.withthis measurementfocus,alasetsandaliabilitiesasociatedwiththe operationofthesefundsareincludedonthebalanceshet.fundequity retainedearningscomponents.proprietaryfund-typeoperatingstatements presentincreases(e.g.,revenues)andecreases(e.g.,expenses)inet (i.e.,netotalasets)isegregatedintocontributedcapitaland totalasets. TheDistrictconsiderspropertytaxesasavailableiftheyarecolected within60daysafteryearend.thoserevenuesusceptibletoacrualare propertytaxes,interestrevenueandchargesforservices. Theacrualbasisofacountingisutilizedbyproprietaryfundtypes Underthismethod,revenuesarerecordedwhenearnedandexpensesare recordedathetimeliabilitiesareincured. Continued GRAGSON,CASIDAY4~:GUILO~I{y,L.L.P. CERTIFIEDPUBLtCACOUNTANTS -9-

10 JEFERSONDAVISCENTRALWATERWORKSDISTRICT NotestoFinancialStatements-Continued June NOTEA-SUFEvL~J~YOFSIGNIFICA/qTACOLrNTINGPOLICIES~CONTINUED 4.CashandInvestments Cashincludesamountsindemandepositsandtimedepositswithoriginal maturitiesof90daysorles.understatelaw,thedistrictmaydeposit ~undsindemandeposits,interest-bearingdemandeposits,moneymarket acounts,ortimedepositswithstatebanksorganizedunderlouisianalaw andnationalbankshavingtheirprincipaloficesinlouisiana. Thesedepositsarestatedatcost,whichaproximatesmarket.Under statelaw,thesedeposits(ortheresultingbankbalances)mustbe securedbyfederaldepositinsuranceorthepledgeofsecuritiesownedby thefiscalagentbank.themarketvalueofthepledgedsecuritiesplus thefederaldepositinsurancemustataltimesequaltheamounton depositwiththefiscalagent.thesesecuritiesareheldinthenameof thepledgingfiscalagentbankinaholdingorcustodialbankthatis mutualyaceptabletobothparties.atjune30,197,thedistricthas $273,395indeposits(colectedbankbalances).Thesedepositsare securedfromriskby$5,616ofederaldepositinsuranceand$267,79of pledgedsecuritiesheldbythecustodialbankinthenameofthefiscal agentbank. Investments ThefolowingaretheinvestmentsOftheDistrict,whicharecategorized togiveanindicationofthelevelofriskasumedbythedistrictat year-end.category1includesinvestmentsthatareinsuredoregistered orforwhichthesecuritiesareheldbythedistrictoritsagentinthe nameofthedistrict.category2includesuninsuredandunregistered investmentsforwhichthesecuritiesareheldbythebroker'sordealer's trustdepartmentoragentinthenameofthedistrict.thereareno Category2investments.Category3includesuninsuredandunregistered investmentsforwhichthesecuritiesareheldbythebrokerordealer,or byitstrustdepartmentoragentbutnotinthenameofthedistrict. TherearenoCategory3investments. U.S.Government 1 Category 2 3 Carying AmountMarket Value Securities $- Continued GRAGSON,CASIDAY~GUILORY,L.F. CERTIFIEDPUBLICACOUNTANTS -10-

11 JEFERSONDAVISCENTR/~LWATERWORKSDISTRICT NotestoFinancialStatements-Continued June30,197 NOTEA-SUb,MARYOFSIGNIFICANTACOUNTINGPOLICIES-CONTINUED 5.AcountsReceivable Uncolectibleamoznltsdueforeceivablesarerecognizedasbadebtsat thetimejnfo2~ationbecomesavailablewhichwouldindicatethathe particulareceivablei8notcolectable.thismethodoesnotresultin achargetobadebtsthatismaterialydiferentfromtheamounthat wouldbechargedifthereservemethodwereused. 6.ConstructionPeriodInterest ~nterestcostsof$90,740duringoriginalconstructionperiodofplant wascapitalizedandisbeingamortizedoverthetermoftheoriginalbond isueusingthestraight-linemethod.amortizationexpensewas$2,38 fortheyearendedjune30, StatementofCashFlows Forpurposeofthestatementofcashflows,theDistrictconsidersal highlyliquidebtinstrumentspurchasedwithamaturityofthremonths orleswhenpurchasedtobecashequivalents.thestatementreflects endingcashandcashequivalentsof$273,28whichrepresents unrestrictedamountsof$179,28andrestrictedamountsof$94,0. 8.Budgets AnenterprisefuI~dbudgetisadoptedonabasisconsistentwithgeneraly aceptedacountingprinciples.alanualapropriationslapseat fiscalyearend. Onorbeforethelastmetingofeachyear,thebudget~spreparedby yearestimatesandrequestedapropriationsforthenext:fiscalyear. functionandactivity,andincludesinformationonthepastyear,curent Theproposedbudgetispresentedtothegovernment'sBoardof Comisionersforeview.Theboardholdsapublichearingandmayad to,subtractfromorchangeapropriations,butmaynotchangetheform ofthebudget.anychangesinthebudgetmustbewithintherevenuesand reservesestimated. Expendituresmaynotlegalyexcedbudgetedapropriationsathe activitylevel. Continued GRAGSON,CASIDAY~GUILORY,L.L.R CERTf~IEOPUBLICACOUNTANTS ĪI"

12 JEFERSONDAVISCENTRALWATERWORKSDISTRICT NotestoFinancialStatements-Continued June NOTEA-SU~94A~yOFSIGNIFICANTACOUNTINGPOLICIES-CONTINUED 9.ComparativeData Comparativetotalsfortheprioryearhavebenpresentedinthe acompanyingfinancialstatementsinordertoprovideanunderstandingof changesinthegovernment'sfinancialpositionandoperations. NOTEB-ADVALOREMTA~ES FortheyearendedJune30,197taxesof9.09milswereleviedon propertywithasesedvaluationstotaling$14,065,830andwere dedicatedasfolows: Generaloperations Totaltaxesleviedwere$129, mils PropertytaxmilageratesareadoptedinJulyforthecalendaryearin whichthetaxesareleviedandrecorded.altaxesaredueand colectiblewhentheasesmentrolsarefiledonorbeforenovember15 ofthecurentyear,andbecomedelinquentafterdecember31.property taxesnotpaidbythendoffebruaryaresubjectolien. NOT~C~FIXEDASETS Asumaryofchangesinfixedasetsfortheyearisasfolows Distributionsystem Furniture,fixtures&equipment Machineryandequipment Land Lesacumulatedepreciation TOTALS BegiruningFixedAsets ofyear $3,534,875 7, ,174 19,90 3,725, $27687 GRAGSON,CASIDAY~GUILORY,L.L.p CERTIFIEDPUBLICACOUNTANTS -12- Net Aditions 45 (6,525) Endof Year $3,534,875 8, , ,90 3,719,618 1,061,35 Continued

13 O~FERSONDAVISCENTRALWATERWORKSDISTRICT NotestoFinancialstatements-Continued June30,197 NOTEC-FIXEDASETS-CONTINLrED Depreciationexpensewas$i0,576fortheyearendedJune30,197. Alpurchasedfixedasetsarevaluedathistoricalcost.Thecostof normalmaintenanceandrepairsthatdonotadtothevalueoftheaset ormaterialyextendasetlivesarenotcapitalized.improvementsare capitalizedandepreciatedovertheremainingusefulivesofthe relatedfixedasets,asaplicable. Depreciationhasbenprovidedoverthestimatedusefulivesofthe asetsusingthestraight-linemethod.thestimatedusefulivesareas folows: Distributionsystem Machineryandequipment Furniture,fixtureandequipment i0 years NOTED-LONG-TERMDEBT A.DebtOutstanding ThefolowingisasumaryofbondtransactionsoftheDistrictforthe yearendedjune30,197: Bondspayable,Julyi,196 Bondsretired $1,030,568 BONDSpAYABLEJ-ONE30,197$ 7,397 BondspayableatJune30,197arecomprisedofthefolowingindividual isue: GRAGSON,CASIDAY~GUILORY,L.L.]I' CERTIFIEDPUBLICACOUNTANTS -13- Continued

14 JEFERSONDAVISCENTRALWATERWORKSDISTRICT NotestoFinancialStatements-Continued June NOTED-LONG-TERMDEBT-CONTINI/ED B.DebtServiceRequirementstoMaturity TheanualreqlirementstoamortizealdebtsOutstandingasofJune30 197,includinginterestpaymentsof$1,801,257areasfolows: YearEndingJune30, Thereafter OnJune18,197,theBoardauthorizedtheisuanceof$1,132,0of taxablewaterrevenuerefundingbonds,series197torefundthebonds datedaprili,1989.hibernianationalbankhasagredtopurchasethe 197refundin~bondsat8.0%interestefectiveAugust1,197.The estimatednetsavingsfromthisrefundingisaproximately$650,0. NOTE-COMPONENTSOFRESTRICTEDASETS Enterprise~nd:RevenueRevenueRevenue Cashand SinkinqReserveContinqencyDeposits-Totals Bond Bond Bond Customer Certainprocedsofenterprisefundrevenuebondsareclasifiedas investments$3,205$51,393$9,402$71,704$165,704 restrictedasetsonthebalanceshetbecausetheiruseislimitedby aplicablebondcovenants.the1'bondsinking"acountisusedto segregateresourcesacumulatedfordebtservicepaymentsoverthenext twelvemonths.the"bondreserve"acountisusedtoreportresources setasidetomakeupotentialfuturedeficienciesintherevenuebond sinkingacount.the"bondcontingency"acountisusedtoreport resourcesetasidetometunexpectedcontingenciesortofundaset renewalsandreplacements. Continued GRAGSON,CASIDAY~GUILORY,L.L.P CERT;FJEDPUSkfCACOUNTANTS -14-

15 JEFERSONDAVISCENTRALWATERWORKSDISTRICT NotestoFinancialStatements-Continued June30,197 NOTE-COMPONENTSOFRESTRICTEDASETS-CONTINUED Theamou/~tofretainedearningsreservedforevenuebondretirementis detailed'asfolows: Restrictedasets:revenuebondsinking,reserve Les:Curentmaturitiesofrevenuebonds,payable andcontingencyfunds Acruedinterest,payablefromrestrictedasets $94,0 28,137 8,370 RetainedEarningsReserved $st=l~2/493 NOTEF-COhTI'RIBiVfEDCAPITAL Duringtheyear,contributedcapita]-changedbythefolowingamount CONTRIBUTEDCAPITAL,BEGINING Curentyeardepreciationonfixedasets $1,23,614 acquiredbyfundsexternalyrestricted forcapitalexpendituresthatreduce CONTRIBUTEDCAPITAL,ENDING contributedcapital ~60,261 NOTEG-PERDIEM Totalperdiempaidconsistedofthefolowing: LeJ.Clement BilyPrecht,Jr. PaulStark $90 RuselTouchet 840 EdmundWalker $4, GRAGSON,CASI')AY~GUILORY,LP. CERTIFIEDpUBLICACOUN'[ANTS -15-

16 GRAGSON,CASI)AY&GUILORY,L.L.R (103,40)194,65~)8,749 JEFERSONDAVISCENTRALWATERWORKSDISTRICT NotestoFinancialStatements-Continued NOTEH-RISKMAMA~EMENT June30,197 TheDistrictisexposedtovariousrisksoflosrelatedtotorts;theft of,damagetoandestructionofasets;erorsandomisions;injuries toemployes;andnaturaldisasters.thedistrictmaintainscomercial believesuchcoverageisuficientoprecludeanysignificant uninsuredlosestothedistrict.setledclaimshavenotexcededthis insurancecoveragecoveringeachofthoserisksoflos.management c:omercialcoverageinanyofthepasthrefiscalyears.

17 JEFERSONDAVISCENTRA/,WATERWORKSDISTRICT StatementofRevenues,Expenses BudgetandChangesinRetainedEarningsandActual YearEndedJune30,197 OPERATINGREVENUES Chargesforservices Advaloremtaxes(net) Instalations Penaltiesandreconectfes Miscelaneous TOTA]~OPERATINGE~-EIqUES OPERATINGEXPENSES Adw~rtising Amortization Autorental Chemicals Comunication Contractlabor Convention Depreciation Dues Fuel Insurance-employes Insurance-other Miscelaneous Ofice Perdiem Postage Printing Profesionalfes Repairsandmaintenance Retirement Salaries Suplies Taxesandl~enses Utilities Watersamples TOTALOPERATINGEXPENSES OPEPJ~TINGINCOME NON-OPERATINGREVENUES(EXPENSES) Interestincome Interestexpense Variance Favorable Budqet[_Actual(Unfavorable $218,0 18,0 4,0 4,0O ,950 16,0 3,0 1, ,801 1,50 3,30 15,0 i,0 1,450 1,50 4,20 3,0 1,0 3,20 19,152 3,40 68,70 17,0 5,260 32,0 1,0 294,9~ $230,907$ 125,920 6,308 5, ,59_8 68 2,38 2,319 14,293 2, ,576 1,560 2,845 13,92 8,656 1, ,260 2, ,10 29,272 3,387 68,768 i0,347 5,254 26,79 _640 ~16,515 12,907 7,920 2,308 1, , ,38(369 1, , (30,75)(60) 45 1,078 2,34(283) 715(60) (i0,120)132 6,6536 5,21360 (21,532) 49,01753,0834,06 i0,018,5088,508 (13.40)(13,159) 241 (I03.40)~94,65!),B,749 Theacompanyingnotesareanintegralpartofthesefinancialstatements GRAGSON,CASIDAY~GUILORY,L.L.E

18 StatementofRevenues,ExpensesandChangesinRetainedEarnings- JEFERSONDAVISCENTRA/JWATERWORKSDISTRICT BudgetandActual-Continued YearEndedJune30,197 Variance Favorable NETLOS $(54,383)$(41,568)$12,815 BudgetActual(Unfavorable) Adcurentyear'sdepreciationonfixed asetsacquiredbyfundsexternaly restrictedforcapitalexpenditures thatreducecontributedcapital 60,26160,261 INCREASEINRETAINED RETAI~/SDEARNINGS-BEGINING EARNINGS 5,878 RETAINEDEARNINGS-ENDING 864,06 864,06 18,693 12,815 Theacompanyingnotesareanintegralpartofthesefinancialstatements GRAGSON,CASIDAYt~GUILORY,L.L.E CERTIFIEDPUBLICACOUNTANTS -3.8-

19 GIA(;SON,CASIDAY&(I;1JILORY,L.L.P CERTIFIEDPUBLICACOUNTANTS W,G~ORG~GRAG(~ON,C,P.A, RfCHARDW.CASI{}AY,C.P.A,(Apc RAYMONDGUILORy,JR.,C,P.A. JULfAqN.pORTUS,C.P.A. CRAIGA.CHILORES,C.P.A. LAKECHARLES,LOU}SIANA70602~B47 ONELAKESIDEPLAZA,SUITE7(~C) CAMUSCAS'FILE,C.p.A. TELEPHONE(318) P,O,DRAWER184) D~.WNREC,D,C.P.^, FACSIMILE(3I8)4:)9-136 MICHEL.EBOURNE,C.P,A, COYVINCENT,C,F'.A, FINANCIA3LSTATEMENTSPERFORMEDINACORDANCEWITH INDEPENDENTAUDITORS'REPORTONCOMPLIANCE BASEDONANAUDITOFGENERALpURPOSE GOVERNMENTAUDITINGSTANDARDS BoardofComisioners July25,197 JefersonDavisCentralWaterworksDistrict Welsh.Louisiana DavisCentralWaterworksDistrict,acomponentunitoftheJefersonDavis ParishPoliceJury,asofandfortheyearendedJune30,197,andhave WehaveauditedthegeneralpurposefinancialstatementsoftheJeferson isuedoureporthereondatedjuly25,197. standardsandgovernmentauditingstandards,isuedbythecomptrolergeneral oftheunitedstates.thosestandardsrequirethatweplanandperformthe Weconductedourauditinacordancewithgeneralyaceptedauditing auditobtainreasonableasuranceaboutwhetherthegenera],purpose financialstatementsarefreofmaterialmistatement. JefersonDavisCentralWaterworksDistrictistheresponsibilityof management.aspartofobtainingreasonableasuranceaboutwhetherthe Compliancewithlaws,regulations,contractsandgrantsaplicabletothe financialstatementsarefreofmaterialmistatement,weperformedtestsof thedistrict'scompliancewithcertainprovisionsoflaws,regulations, contractsandgrants.however,theobjectiveofourauditofthegeneral purposefinancialstatementswasnotoprovideanopiniononoveral compliancewithsuchprovisions.acordingly,wedonotexpresuchan opinion. requiredtobereportedundergovernmentauditingstandards. Theresultsofourtestsdisclosednoinstancesofnoncompliancethatare BoardofComisioners.However,thisreportisamaterofpublicrecordand Thisreportisintendedfortheinformationofthemanagementandthe itsdistributionisnotlimited. -19-

20 W.~EORGIEGRAGSON,C,p,A. mchardw.ca~may.c.p.a,~apc RAYMONDGUILOIty,JR.,C.P,A, JULIAW.PORTUS,C,P,A, CR&IGA.C,HILDRIES,C,P.A, CAMUSCASTILIE,C,P.A. DAWNREbD,C,P.A, MICHEL~BOURNE,C.p,A, CO'.(VINCEN~r.C.pA, GRA(;SON,CASIDA~t"&(;!Jl~LOl~t~,L.I.P CERTIFIEDPUBLICAC:ON'rANTS oni:.lakesideplaza,suite?~ p.o.draweris4~ LAKECHARLES,LOUtSlAIMA70602-$84"~ TELEPHONE(:~I8)439-19{}6 FACSIMILE(31B) INDEPENDENTAUDITORS'REPORTONINTERNALCONTROL STRUCTUREBASEDONANAUDITOFGENERALPURPOSEFINANCIAL STATEMENTSPERFORMEDINACORDANCEWITH GOVERNMENTAUDITINGSTANDARDS BoardofComisioners JefersonDavisCentralWaterworksDistrict Welsh,Louisiana July25,197 WehaveauditedthegeneralpurposefinancialstatementsoftheJeferson DavisCentralWaterworksDistrict,acomponentunitoftheJefersonDavis ParishPoliceJury,asofandfortheyearendedJune30,197,andhave isuedoureporthereondatedjuly25,397. Wehaveconductedourauditinacordancewithgeneralyacepted auditingstandardsandgovernmentauditingstandards,isuedbythe ComptrolerGeneraloftheUnitedStates.Thosestandardsrequirethatwe planandperformtheauditobtainreasonableasuranceaboutwhetherthe generalpurposefinancialstatementsarefreofmaterialmistatements. ThemanagementoftheJefersonDavisCentralWaterworksDistrictis responsibleforestablishingandmaintaininganinternalcontrolstructurẹ Infulfilingthisresponsibility,estimatesandjudgmentsbymanagementare requiredtoasesthexpectedbenefitsandrelatedcostsofinternalcontrol structurepoliciesandprocedures.theobjectivesofaninternalcontrol structurearetoprovidemanagementwithreasonable,butnotabsolute, asuzancethatasetsaresafeguardedagainstlosfromunauthorizeduseor dispositionandthatransactionsarexecutedinacordancewithmanagement's authorizationandrecordedproperlytopermithepreparationofgeneral purposefinancialstatementsinacordancewithgeneralyaceptedacouhting principles.becauseofinherentlimitationsinanyinternalcontrol structure,erorsoriregularitiesmayneverthelesocurandnotbe detected.also,projectionofanyevaluationofthestructuretofuture peribdsisubjectotheriskthatproceduresmaybecomeinadequatebecause ofchangesinconditionsorthathefectivenesofthedesignandoperation ofpoliciesandproceduresmaydeteriorate. -20-

21 statementsofthejefersondaviscentralwaterworksdistrict,fortheyear endedj'0ne30,397,weobtainedanunderstandingoftheinternalcontrol Inplaninsandperformingourauditofthegeneralpurposefinancial structure.withrespectotheinternalcontrolstructure,weobtainedan understandingofthedesignofrelevantpoliciesandproceduresandwhether theyhavebenplacedinoperation,andweasesedcontrolriskinorderto determineourauditingproceduresforthepurposeofexpresingouropinionon thegeneralpurposefinancialstatementsandnotoprovideanopiniononthe internalcontrolstructure.acordingly,wedonotexpresuchanopinion. itsoperationthatweconsidertobeareportableconditionunderstandards establishedbytheamericaninstituteofcertifiedpublicacountants. Wenotedacertainmaterinvolvingtheinternalcontrolstructureand Reportableconditionsinvolvematerscomingtouratentionrelatingto significantdeficienciesinthedesignoroperationoftheinternalcontrol structurethat,inourjudgement,couldadverselyafecthentity'sability torecord,proces,sumarize,andreportfinancialdataconsistentwiththe asertionsofmanagementinthegeneralpurposefinancialstatements. segregationofdutieswithinitsinternalcontrolstructure.however,because ofthedistrict'sizeandresources,propersegregationofdutiesisnot ThereportableconditionisthatheDistrictdoesnothaveadequate feasible. operationofoneormoreoftheinternalcontrolstructurelementsdoesnot reducetoarelativelylowleveltheriskthaterorsoriregularitiesin Amaterialweaknesisareportableconditioninwhichthedesignor amountsthatwouldbematerialinrelationtotbegeneralpurposefinancial statementsbeingauditedmayocurandnotbedetectedwithinatimelyperiod byemployesinthenormalcourseofperformingtheirasignedfunctions. disclosealmatersintheinternalcontrolstructurethatmightbe reportableconditionsand,acordingly,wouldnotnecesarilydiscloseal Ourconsiderationoftheinternalcontrolstructurewouldnotnecesarily reportableconditionsthatarealsoconsideredtobematerialweaknesesas definedabove.however,webelievethereportableconditiondescribedabove isnotamaterialweaknes. BoardofComisioners.However,thisreportisamaterofpublicrecordand itsdistributionisnotlimited. Thisreportisintendedfortheinformationofthemanagementandthe GRAGSON,(~ASIDAY&GUILORY,L.LI'. CERTIFIEOpUBh'~ACOUNTANTS