Financial Report Year Ended August 31, 2011app1.lla.la.gov/PublicReports.nsf/531E9489CFE... ·...

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CITY OF OPELOUSAS, LOUISIANA

Financial Report

Year Ended August 31, 2011

Under provisions of state !aw this report is a public document A copy of the teport has been submitted to the entity and othei appropnate public otfioals The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and where appropriate at the office of the pansh clerk of court

R a , e a s e D a t e M A R 2 8 2012 ^

TABLE OF CONTENTS

Independent Auditors' Report

BASIC FINANCIAL STATEMENTS

Page

1-2

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS) Statement of net assets Statement of activities

FUND FINANCIAL STATEMENTS (FFS) Balance sheet - governmental funds Reconciliation of the governmental fiinds balance sheet

to the statement of net assets Statement of revenues, expenditures, and changes m fund balances-

governmental ftinds Reconciliation of the statement of revenues, expenditures, and

changes in fund balances of governmental funds to the statement of activities Statement of net assets - proprietary funds Statement of revenues, expenses, and changes in fund net

assets - proprietary funds Statement of cash flows - proprietary funds

8

9

10

11 12

13 14-15

Notes to basic financial statements 16-45

REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedules

General Fund Sales Tax Special Revenue Fund

OTHER SUPPLEMENTARY INFORMATION

47 48

OTHER FINANCIAL INFORMATION Balance sheet - General and Sales Tax funds (with pnor year comparable amounts) Major Governmental Funds (with prior year comparable amounts) -

General Fund - budgetary comparison schedule General Fund - budgetary companson schedule - revenues General Fund - budgetary companson schedule- expenditures Sales Tax Fund - budgetary comparison schedule

Nonmajor Governmental Funds (with prior year comparable amounts) -Combining balance sheet Combining statement of revenues, expenditures, and changes in fund balances

51

52 53-54 55-58

59

61 62

(continued)

TABLE OF CONTENTS (Continued)

Page

Nonmajor Enterprise Fund (with prior year comparable amounts) -Statement of net assets 64 Statement of revenues, expenses, and changes in fund net assets 65 Statement of cash flows 66

Intemal Service Funds (with prior year comparable amounts) -Combining statement of net assets 68 Combining statement of revenues, expenses, and changes m fund net assets 69 Combining statement of cash flows 70

Schedule of insurance in force (unaudited) 71

COMPLIANCE, INTERNAL CONTROL AND OTHER GRANT INFORMATION

Report on Intemal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Fmancial Statements Performed in Accordance with Government Auditing Standards 73-74

Independent Auditor's Report on Comphance with Requirements That Could Have a Direct and Matenal Effect on Each Major Program and on Intemal Control over Compliance in Accordance with OMB Circular A-133 75-76

Schedule of expenditures of federal awards 77 Notes to schedule of expenditures of federal awards 78-79 Schedule of findings and questioned costs 80-81 Schedule of prior audit findings and questioned costs 82 Summary schedule of current and prior year audit findmgs

and correcUve action plan 83-97

C Burton Kolder, CPA" Russell F Champagne CPA Victor R Slaven CPA' P Troy Courvtlle CPA' Gerald A Thibodeaux, Jr CPA* Robert S Carter CPA Arthur R MIxon CPA*

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS

LLC

Penny Angene Scrugglns CPA Christine L Cousin CPA Wanda F Arcement CPA,CVA Allen J LaBry CPA Albert R Leger CPAPFS.CSA* Marshall W Guidry CPA Stephen R Moore Jr, CPA PFS CFP* ChFC" James R Roy CPA Robert J Metz CPA Aian M Taylor CPA Kelly M Doucet CPA Cheryl L Bartey CPA Mandy B Self CPA Paul L Delcambre ^ CPA Knstn B Dauzat CPA Matthew E Margagbo CPA JaneR Hebert, CPA Bryan K. Joubert CPA Stephen J Anderson CPA

Retred Conrad O Chapman CPA* 2006 TynesE Mixon Jr CPA 2011

INDEPENDENT AUDITORS' REPORT

OFFICES

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

113EastBndgeSt Breaux Bridge LA 70517 Phone (337) 332-4020 Fax (337) 332 2867

1234 David Dr StB203 Morgan City IJ^703B0 Phone (985) 384-2020 Fax (985) 364-3020

408 West Cotton Street VillePlaHe LA 70586 Phone (337) 363-2792 Fax (337) 363-3049

332 West Sixth Avenue Oberiin U\ 70655 Phone (337) 639-4737 Fax (337) 639-4568

450 East Mam Street Newlbena LA 70560

Phone (337) 387 9204 Fax (337) 367 9208

200 South Main Street Abbeville LA 70510

Phone (337) 893 7944 Fax (337) 893 7946

1013 Mam Street Franklin LA 70538

Phone (337) 829-0272 Fax (337) 828-0290

133EaslWaddilSI Marksvrile LA 71351

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

621 Majn Street Pineville LA 71360

Phon© (318) 442-4421 Fax (318) 442 9833

A PFotetslonal Accounting CwpwaUon

WEB SITE WWW KCSRCPAS COM

The Honorable Donald Cravins, Sr, Mayor and Members of the Board of Aldermen

City of Opelousas, Louisiana

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Opelousas, Louisiana, as of and for the year ended August 31, 2011, which collectively compnse the City's basic financial statements as listed in the table of contents These financial statements are the responsibility of the City's management 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 Umted States of Amenca and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the Umted States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinions

In our opinion, the fmancial statements referred to above present fairly, in all matenal respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Opelousas, Louisiana, as of August 31, 2011, and the respective changes in financial position and, cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of Amenca

In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2012, on our consideranon of the City of Opelousas, Louisiana's intemal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters The purpose of that report is to descnbe 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 internal control over financial reporting or on comphance That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit

Member of AMERICAN INSTITUTE OF CERTIFIED PUBUC ACCOUNTArJTS

Member of SOCIETY OF LOUISIANA

CERTIFIED PUBUC ACCOUNTANTS

Accounting principles generally accepted in the United States of America require that the budgetary companson information on pages 47 through 48 be presented to supplement the basic financial statements Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements m an appropnate operational, economic, or historical context We have applie(J certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of mquines of management about the methods of prepanng the information and comparing the information for consistency with management's responses to our inquines, the basic financial statements, and other knowledge we obtamed dunng our audit of the basic financial statements We do not express an opimon or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opimon or provide any assurance

The City of Opelousas, Louisiana has omitted management's discussion and analysis that accounting principles generally accepted m the United States of America require to be presented to supplement to the basic financial statements Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements m an appropnate operational, economic, or histoncal context Our opinion on the basic financial statements is not affected by this missing information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Opelousas, Louisiana's financial statements as a whole The other supplementary information on pages 51 through 99 is presented for purposes of additional analysis and is not a required part of the basic financial statements The accompanying schedule of expenditures of federal awards (page 77) is presented for purposes of additional analysis as required by U S Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the financial statements The other financial information, supplemental information, and schedule of expenditures of federal awards are the responsibility of management and were denved from and relate directly to the underlying accountng and other records used to prepare the financial statements The information has been subjected to the auditmg procedures applied in the audit of the financial statements and certain additional procedures, including companng and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted m the United States of Amenca In our opimon, the information is fairly stated m all matenal respects in relation to the financial statements as a whole The schedule of insurance in force has not been subjected to the auditing procedures applied in the audit of the basic financial statements and accordingly, we do not express an opimon or provide any assurance on it The prior year comparative information on the other supplementary information has been denved from the City of Opelousas, Louisiana's 2010 financial statements, which was prepared by other auditors and was subjected to the auditing procedures applied in the audit of the basic financial statements and, in their opinion, was fairly presented in all material respects in relation to the basic financial statements taken as a whole

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

Lafayette, Louisiana February 28, 2012

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS)


Statement of Net Assets August 31, 2011

ASSETS Cash and interest-bearing deposits Receivables, net Intemal balances Due fi'om other governmental units Inventory Restncted assets

Cash and interest-beanng deposits Bond issue costs, net Capital assets, net

Total assets

LIABILITIES Accounts payable and accrued expenses Interest payable Due to other government umts Payable from restricted assets Taxes paid under protest Long-term liabilities

Due within one year Due in more than one year

Total liabilities

NET ASSETS Invested m capital assets, net of related debt Restricted for

Debt service Construction Grant provisions

Unrestricted Total net assets

Governmental Activities

S 3,127,011 748,253 211,116 408,198

38,563

60,035 38,007

18,702,551

23,333,734

1,226,912 3,556

394,471 756,808

3,004

671,947 5,220,365

8,277,063

13,989,101

51,893 --

1,015,677

$15,056,671

Business-Type AcUvities

$ 956,071 1,770,578 (211,116)

-28,067

5,363,988 365,707

25,126,215

33,399,510

205,090 --

965,550 -

1,202,000 15,536,860

17,909,500

8,821,897

1,660.814 2,135,215

271,951 2,600,133

$15,490,010

Total

$ 4,083,082 2,518,831

-408,198

66,630

5.424,023 403,714

43,828,766

56,733.244

1,432,002 3.556

394.471 1,722,358

3,004

1.873.947 20,757,225

26,186,563

22,810,998

1,712,707 2,135,215

271,951 3,615.810

$30,546,681

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

5

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FUND FINANCIAL STATEMENTS (FFS)


Balance Sheet Governmental Funds

August 31, 2011

ASSETS

Cash and cash equivalents Accounts receivable Due from other funds Due from other governmental units Inventory Restricted assets

Interest-beanng deposits

Total assets

General

$1,092,330 18,390

924,296 408.198 38,563

60,035

$2,541,812

Sales Tax Special

Revenue

$ 907.233 -

729,828 --

_

$1,637,061

Other Governmental

$ 104.637 469,600

---

_

$ 574,237

Total

$2,104,200 487,990

1,654,124 408,198

38,563

60,035

$4,753,110

LIABILITIES AND FUND BALANCES

Liabilities Accounts payable and accrued expenses Construction payable Accrued compensated absences Deferred revenue - protest taxes Due to other funds Due to other governmental units

Total liabilities

Fund balances Nonspendable - prepaid items Restncted - debt service Restricted - sales tax dedications Assigned - capital expenditures Assigned - health and welfare Assigned - pubhc safety Unassigned

Total fund balances

Total liabilities and fund balances

$1,137,145 -

16,960 3,004

615.464 394,471

2,167,044

38,563 51,893

-5,138 --

279,174 374,768

$2,541,812

$ 1.422 20,396 14,978

---

36,796

.

-1.600,265

----

1,600,265

$1,637,061

$ 6,533 ---

22,544 -

29.077

.

495.302 -

17,072 18.922 13,864

-545,160

$ 574.237

$1,145,100 20,396 31,938 3,004

638,008 394.471

2,232,917

38,563 547,195

1,600,265 22,210 18,922 13.864

279,174 2,520,193

$4,753,110


8


Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets

August 31, 2011

Total fund balances for governmental funds at August 31, 2011 $ 2,520,193

Total net assets reported for governmental activities in the statement of net assets is different because

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds Those assets consist of Construction in progress $ 364,048 Land 1.835,029 Buildings, net of $3,147,035 accumulated depreciaUon 5.537,900 Improvements other than buildings, net of $6,338,567 accumulated depreciation 7,856,321 Equipment and machinery, net of $3,016,935 accumulated depreciation 3,109,253 18,702,551

Long-term liabilities at August 31, 2011 Capital lease payable (488,654) Bonds payable (4,225,000) Compensated absences (811,240) Municipal Police Employees Retirement Payable (350,458) (5,875.352)

Bond issue costs, net 38,007

Interest payable on accrual basis (3,556)

Net assets of the group self-insurance intemal service fund $(320,319) less net capital assets included above of $4,853 (325,172)

Total net assets of govemmental activities at August 31, 2011 $ 15,056,671


9

CITY OF OPELOUSAS, LOUISL\NA

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

For the Year Ended August 31, 2011

Revenues Taxes Licenses and permits Intergovernmental Public Safety Charges for servjces Fines and forfeits Investment earnings Other

Total revenues

Expenditures Current -

General government Public safety Public works Health and welfare Culture and recreation Economic development

Capital outlay Debt service -

Prmcipal retirement Interest and fiscal charges

Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources (uses) Proceeds from capital lease Sale of capital assets Transfers in Transfers out

Total other financing sources (uses)

Net changes in fund balances

Fund balances (deficit), beginning

Fund balances, endmg

General

$ 2,267,168 855,790

1,754,059 -

138,430 95,341

-294,091

Sales Tax Special

Revenue

$ 8,455,814 ------

1,222,560

Other Govemmental

$ --

30,355 23,548

--

1,529 -

Total

$ 10,722.982 855,790

1,784,414 23,548

138,430 95,341

1,529 1.516.651

5,404,879

645,999 219,955

17,837,364

(12,432,485)

500,000

24,789 12,994,172

13.518,961

1,086,476

(711,708)

9,678,374 55,432

668,126

9,010,248

299,838

(244.406)

(11,609,172) (11.609,172)

(2,598,924)

4,199,189

$ 374.768 $ 1.600,265

(244,406)

789,566

$ 545,160

15,138,685

2,245,903 9,295,719 2.001,093

496,696 1,663,248

143,483 1,125,268

115,558 ---

253,000 -

299.568

232,230 30.027

-31,398

--

6,183

2.593,691 9,325,746 2,001.093

528,094 1,916.248

143,483 1,431,019

645,999 219,955

18,805.328

(3,666.643)

500,000 24,789

12,994,172 (11.609,172)

1,909,789

(1.756,854)

4.277.047

$ 2,520.193


10


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

to the Statement of AcUvities For the Year Ended August 31.2011

Total net changes in fund balances for the year ended August 31, 2011 Statement of Revenues, Expenditures and Changes in Fund Balances $ (1,756,854)

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

Capital outlay which is considered expenditures on the Statement of Revenues, Expenditures and Changes m Fund Balances 1,137,664 Depreciation expense for the year ended August 31, 2011 (1,104,031) 33,633

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 (23,814)

Bond pnncipal retirement considered an expenditure on Statement of Revenues, Expenditures and Changes in Fund Balances 365,000

Net loss of the Intemal Service Funds not included on Statement

of Activities (385,250)

Decrease in long-term compensated absences 11,261

Amortization of bond issue costs (4,676)

Capital lease proceeds which are considered revenues on the Statement of Revenues, Expenditures, and Changes in Fund Balances (500,000)

Capital lease retirement considered an expenditure on Statement of Revenues, Expenditures and Changes in Fund Balances 280,999

Changes in other long-term debt -Municipal Police Employees' ReUrement payable 124,406 Interest payable 1,147 125,553

Total changes in net assets at August 31,2011 per Statement of Activites $(1,854,148)


11


Statement of Net Assets - Proprietary Funds August 3 J, 20] 1

Business -Type Activities - Enterprise Funds

ASSETS

Current assets Cash and cash equivalents Receivables, net

Customers Notes Other

Due from other funds Inventories

Total current assets

Noncurrent assets Restricted assets -

Cash and cash equivalents Capital assets, net of accumulated depreciation Deferred financing costs

Total noncurrent assets

Total assets

Electric Light and

Waterworks

$ 465,763

806,550

213.484 160.912 27.605

1,674.314

5.316.579 12,607,305

342,474

18.266.358

$19,940,672

Sewer

J 348.770

620.126

462 969,358

47,409 12.518.910

23,233 12.589.552

$13,558,910

Other Enterprise

Funds

$141 538

117,503 12.915

271,956

_

$271,956

Total Enterprise

Funds

$ 956 071

1,426.676 ! 17,503 226.399 160,912 28,067

2,915.628

5.363.988 25.126.215

365,707

30.855,910

$33,771,538

Govemmental Activities -

Intemal Service Funds

$1022 812

260.263 79,445

1,362,520

4,853

4.853

$1,367,373

LIABILITIES

Current liabilities (payable from current assets) Accounts payable Claims payable Due to other funds Bonds payable

Total

Current liabilities (payable from restricted assets) Bonds payable Construction payable Customers' meter deposits

Total

Total current liabilities

Noncurrent liabilities Revenue bonds payable Compensated absences

Total noncurrent liabilities

Total liabilities

NET ASSETS

invested in capital assets, net of related debt Restncted for

Insurance claims Bond retirement Constmction Grant provisions

Unrestricted Total net assets (deficit)

Total liabilities and net assets

138,713

336,074

474,787

555.000 78,503

887,047 1,520,550

1,995,337

8.480,000 55,009

8.535.009

10,530,346

3,914,779

1,660,814 2,135.215

1.699,518 9.410,326

$19,940,672

66,377

35,949 647,000 749.326

-

-

749,326

6,988,025 13,826

7,001,851

7.751,177

4,907,118

47,409

853,206 5,807,733

$13,558,910

5

5

-

-

5

-

-

5

-

271,951

271,951

$271,956

205,090

372,028 647,000

1,224.118

555,000 78.503

887.047 1,520,550

2.744,668

15,468,025 68.835

15,536,860

18,281,528

8,821,897

1.660,814 2.182.624

271.951 2.552,724

15.490,010

$33,771,538

46,439 756,808 884 445

1.687.692

-

-

1.687.692

-

.

1,687.692

-

(320,319)

(320,319)

$1,367,373


12


Statement of Revenues, Expenses, and Changes m Fund Net Assets Proprietary Funds


Business -Type AcUviUes - Enterprise Funds

Operating revenues Charges for services

UtilUies Interest Premiums Other

Total operatmg revenues

Operatmg expenses Personal services Supplies and materials Other services and charges Repairs and mamtenance Depreciation and amortization

Total operating expenses

Operatmg income (loss)

Nonoperatmg revenues (expenses) Investment mcome Cleco surcharge Interest and fiscal charges

Total nonoperatmg revenues

(expenses)

Income (loss) before contnbutions and transfers

Capital contnbutions

Income (loss) before transfers

Operating transfers in (out) Transfers in Transfers out

Total operating transfers in (out)

Change in net assets

Net assets, beginnmg

Net assets (deficit), ending

Electric Light and

Waterworks

$ 3,920,105 --

49,799

3,969,904

962,059 339,566 753.032

43.995 572,764

2,671,416

1,298,488

123.778 398.186

(380.016)

141.948

1.440,436

143.849

1,584,285

1,325,000 (2,870,000)

(1,545.000)

39,285

9.371,041

$ 9,410.326

Sewer

$1,719,573 --

29,175

1,748,748

235,381 34,700

455,826 148.350 636.212

1,510.469

238.279

3,798 -

(341.181)

(337,383)

(99.104)

-

(99.104)

560,000 (400.000)

160,000

60.896

5,746,837

$5,807,733

Other Enterprise

Funds

$ -9,173 -

1,506

10,679

_

70 750

--

820

9,859

_

-.

9,859

-

9,859

_

--

9,859

262,092

$271,951

Total Enterprise

Funds

$ 5,639,678 9.173 -

80,480

5,729,331

1,197.440 374.336

1,209,608 192.345

1,208,976

4,182,705

1,546.626

127,576 398.186

(721,197)

(195.435)

1,351,191

143,849

1.495,040

1,885,000 (3,270,000)

(1,385.000)

110,040

15,379.970

$15,490,010



$ -

2,375,748 -

2.375,748

_

-2,783.719

-1,239

2.784.958

(409.210)

23.960 -_

23,960

(385.250)

_

(385.250)

.

-_

(385.250)

64,931

$ (320,319)

The accompanying notes are an integral part of this statement

13

CITY OF OPELOUSAS, LOUISL^NA

Statement of Cash Flows Propnetary Funds


Business -Type Activities - Enterpnse Funds

Cash flows from operatmg activities Cash received from customers General and admmistrative expenses paid Cash payments to suppliers for

goods and services Legal expenses paid Insurance paid Cash payments to employees for services

Net cash provided (used) by operatmg activities

Cash flows from noncapital financial activities Decrease in cash overdraft Cash received from other funds Cash paid to other funds Surcharge and other

Net cash provided (used) by noncapital financing activities

Electric Light and

Waterworks

$ 4,344,337

-

(1.577,099)

--

(963.890)

1,803,348

-1,276.456

(3,104,024) 514,456

(1.313,112)

Sewer

$ 1,673.172

-

(1.067.413)

--

235,782

841,541

-765,075

(383,875)

-

381.200

Other Enterpnse

Funds

$ 49,649

-

(70) (750)

--

48,829

----

-

Total Enterpnse

Funds

$ 6,067.158

-

(2.644,582) (750)

-(728,108)

2,693,718

-2,041,531

(3,487,899) 514,456

(931,912)



$ 2.720.655 (19,000)

(2,362,196)

-(416,961)

-

(77,502)

(198,184) 110,000

--

(88.184)

Cash flows from capital and related financing activities

Purchase of fixed assets Pnncipal on revenue bonds paid Interest on revenue bonds paid

Net cash provided (used) by capital and related financing activities

Cash flows from mvesting activities Interest on investments

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents, beginnmg of period

Cash and cash equivalents, end of penod

(413,178) (525.000) (380,016)

(1.318.194)

123,778

(704,180)

6.486,522

$ 5,782,342

(1.964) (628,013) (341,181)

(971,158)

3.798

255,381

140.798

$ 396,179

-

48.829

92,709

$141,538

(415,142) (1,153,013)

(721.197)

(2.289,352)

127,576

(399.970)

6,720,029

$ 6,320,059

-

23,960

(141.726)

1,164,538

$ 1,022,812

(contmued)

M

CITY OF OPELOUSAS. LOUISIANA

Statement of Cash Flows Propnetary Funds (Continued)

For the Year Ended August 31. 2011

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

Operating mcome (loss) Adjustments to reconcile operating income (loss)

to net cash provided (used) by operating activities Depreciation Amortization of bond issuance cost

Change m assets and liabilities (Increase) decrease m accounts receivable Decrease in inventory Increase (decrease) in accounts payable Increase (decrease) in construction payable Increase in claims payable Increase in customers' meter deposits Increase (decrease) in accrued compensated

absences

Net cash provided (used) by operating achvities

Busmes!

Electric Light and

Waterworks

$ 1,298.488

541,023 31,741

402,012 4,505

(6.976) (498.465)

-32.851

(1,831)

$ 1,803,348

5 -Type Activities

Sewer

$ 238,279

631,984 4.228

(75.576) 44,915 (1,888)

---

(401)

$ 841.541

- Enterpnse

Other Enterpnse

Funds

$ 9,859

.

-

38.970

-----

$ 48,829

Funds

Total Enterpnse

Funds

$ 1.546.626

1.173.007 35.969

365.406 49,420 (8.864)

(498,465)

-32.851

(2,232)

J 2,693,718



$ (409.210)

1,239

-

195,865

-(34,688)

-169,292

-

.

$ (77,502)


15


Notes to Basic Financial Statements

(1) Summary of Significant Accounting Policies

The accompanying financial statements of the City of Opelousas (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to govemmental units GAAP includes all relevant Govemmental Accountmg Standards Board (GASB) pronouncements Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the both the govemment-wide and propnetary fiind financial statements to the extent that those standards do not conflict with or contradict guidance of the GASB Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterpnse ilinds, subject to this same limitation The government has elected not to follow subsequent private-sector guidance. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note

A Financial Reporting Enntv

The City of Opelousas, Louisiana, was incorporated under the provisions of the State of Louisiana per LA R S 33 321-481 The City operates under the Mayor-Board of Aldermen form of government In determining the financial reporting entity, the City complies with the provisions of GASB Statement No 14, "The Financial Reporting Entity " Under provisions of this Statement, the municipality is considered a primary government, since it is a special purpose government that has a separately elected governing body, is legally separate, and is fiscally independent pf other state or local governments As used in GASB Statement No 14, fiscally independent means that the municipality may, without the approval or consent of another govemmental entity, determine or modify its own budget, levy its own taxes or set rates or charges, and issue bonded debt The mimicipality has oversight of other component units that are either, blended into the municipalities' basic financial statements or discretely presented in a separate column in the government-wide financial statements

Blended Component Units

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


Notes to Financial Statements (Contmued)

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 City of Opelousas for financial reporting purposes The basic critenon for including a potential component unit within the reporting entity is financial accountability The GASB has set forth cntena to be considered in determining financial accountability These cntena 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 majonty but are fiscally dependent on the municipality

3 Orgamzations 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 government, its component units, or its constituents

b The pnmary government (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 pnmary government (or its component units) is entitled to, or has the ability to otherwise access, are significant to that primary govemment

4 Orgamzations that are closely related to, or financially integrated with the pnmary government

Discretely Presented Component Umts

Discretely presented component units are separate legal entities that meet the component unit criteria descnbed above, but do not meet the cntena described for blending Currently, the City has no discretely presented component umts

17


Notes to Financial Statements (Continued)

Based on the foregoing criteria, the following govemmental organizations are not considered part of the City and are thus excluded from the accompanying financial statements for the reasons noted

The Opelousas Housing Authority was chartered by the City, and its Board of Directors is appointed by the Mayor and Board of Aldermen However, the City's oversight responsibilities in the management of operations and financial accountability are remote.

The City of Opelousas has no authonty over nor is it involved m the record keeping of the Opelousas Volunteer Fire Department

The Opelousas City Court is operated under the directorship of the Opelousas City Judge who is an elected public official Revenues are derived from court costs and appropnations form the City's General Fund However, the City cannot significantly influence operations nor does it have responsibility for fiscal management

B Basis of Presentaton

Govemmenl-Wide Fmancial Statements (GWFS)

The statement of net assets and statement of activities display information about the reporting govemment as a whole. They include all funds of the reportmg entity. The statements distinguish between govemmental and business-type activities Govenunental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues Business-type activnies are financed m whole or m part by fees charged to extemal parties for goods or services The City of Opelousas' Intemal Service Fund is a govemmental activity Intemal Service Fund activity IS eliminated to avoid "doubling up" revenues and expenses

The statement of activities presents a comparison between direct expenses and program revenues for the busmess-type activities of the City and for each fiinction of the City'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 contnbutions 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 City are organized and operated on the basis of fijnds A fund IS an independent fiscal and accoimting 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 comphance with finance-related legal and contractual provisions The minimum number of funds is maintained consistent with legal and managerial requu"ements

18



The vanous fimds of the City are classified into two categones govemmental and propnetary The emphasis on fund financial statements is on major govemmental and enterprise funds, each displayed in a separate column A fiind is considered major if it is the primary operating fund of the City or meets the following criteria

a Total assets, liabilities, revenues, or expenditures/expenses of that individual govemmental or enterprise fimd are at least 10 percent of the corresponding total for all fiands of that category or type, and

b Total assets, liabilities, revenues, or expenditures/expenses of the individual govemmental or enterpnse fund are at least 5 percent of the coiresponding total for all govemmental and enterpnse fiinds combined

The major fiinds of the City are described below

Govemmental Funds -

The General Fund is the general operating fund of the City 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 taxes and 0 2 percent sales tax that are legally restricted to expenditures for specific purposes

Proprietary Funds -

The Electnc Light and Waterworks Fund accoimts for electncity and water services to residents of the City of Opelousas All activities necessary to provide such services are accounted for in this fiind, including but not limited to, operations, constmction, administration, maintenance, financing and related debt service, and billing and collection

The Sewer Fund accounts for sewer services to the City of Opelousas All activities necessary to provide such services are accounted for in this fund, including but not limited to, operations, construction, administration, maintenance, financing and related debt service, and billing and collection

19



Additionally, the City reports the following fund types

Govemmental Funds -

Special Revenue Funds -

Special revenue funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restncted to expenditures for specific purposes These ftinds account for the revenues and expenditures related to federal, state and local grant entitlement programs

Debt Service Funds -

Debt service funds, estabhshed to meet the requirements of bond ordinances, are used to account for the accumulation of resources and for the payment of general long-term debt principal, interest, and related costs

Capital Projects Funds -

Capital projects funds are used to accoimt for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds)

Proprietary Funds -

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

Enterprise funds

Enterprise funds are used to account for operations (a) that are financed and operated m a manner similar to private business enterpnses - 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 governing body has decided that penodic determination of revenues earned, expenses incurred, and/or net income is appropnate for capital maintenance, public policy, management control, accountability, or other purposes

20



Intemal service funds

Intemal service fijnds 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 urut, or to other govemmental units, on a cost-reimbursement basis Measurement Focus/Basis of Accounting

Measurement focus is a term used to describe "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 assets 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 fiind financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropnate

a All govemmental fimds 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 penod These fiinds use fund balance as their measure of available spendable financial resources at the end of the penod

b The propnetary fimd utilizes an "economic resources" measurement focus The accounting objectives of this measurement focus are the determmation of operatmg mcome, 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 Propnetary fund equity is classified as net assets

Basis of Accounting

In the government-wide statement of net assets and statement of activities, both govemmental and business-type activities are presented using the accrual basis of accounting Under the accrual 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

21



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

The propnetary funds utilize the accrual 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

D Assets, Liabilities and Equity

Cash, interest-bearing deposits, and investments

For purposes of the statement of net assets, cash and interest-beanng deposits include all demand accounts, savings accounts, and certificates of deposits of the City

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

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

Receivables

In the govemment-wide statements, receivables consist of all revenues eamed at year-end and not yet received Major receivable balances for the govemmental activities include sales and use taxes, franchise taxes, grants, police fines, and ambulance fees Business-type activities report customer's utility service and interest earnings 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 uncollectibility of the particular receivable The amount of taxes receivable at year end is not material The allowance for customers' utility receivables was $482,970 at August 31, 2011 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

22



Interfund receivables and payables

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

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

Inventory

Inventory is valued at cost and is recognized as an expenditure under the consumption method Under this method, inventories are recorded as expenditures when they are used

Prepaid Items

Payments made to vendors for services that will benefit penods beyond August 31, 2011, are recorded as prepaid items

Restricted Assets

Restncted assets include cash and interest-beanng deposits of the general fiind and propnetary fund that are legally restncted as to their use The restncted assets m the utility fund are related to the utility meter deposits and revenue bond accounts.

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 government-wide or financial statements Capital assets are capitalized at histoncal 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 City maintains a threshold level of $1,000 or more for capitalizing capital assets

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 Pnor to July 1, 2001, govemmental fiinds' infrastmcture assets were not capitalized These assets have been valued at estimated histoncal cost

23



Depreciation of all exhaustible capital assets is recorded as an allocated expense m 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 useful lives by type of asset is as follows

Buildings and improvements 20-60 years Fumiture and equipment 5-15 years Vehicles 3-15 years Water system 20-50 years Sewerage system 20-50 years Meters 10-20 years

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

Long-term debt

The accounting treatment of long-term debt depends on whether the assets are used in govemmental fiind operations or propnetary fund operations and whether they are reported m the government-wide or ftind financial statements

All long-term debt to be repaid from govemmental and business-type resources is reported as liabilities in the govemment-wide statements The long-term debt consists pnmanly of the public improvement, revenue bonds payable, and utility meter deposits payable

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

Compensated Absences

The City allows employees to accumulate a maximum of one-third of vacation eamed dunng a calendar year Unused vacation in excess of one-third shall be automatically added to the employee's sick leave account They are also allowed to accumulate all of the sick leave they eam dunng a calendar year Upon termination or retirement, an employee shall be paid all of his accumulated vacation pay Upon regular or disability retirement, employees shall be paid, or his beneficiary shall be paid upon employee's death for one-fourth day for each accumulated sick leave day at the regular hourly rate of pay and not exceed one hundred eighty days

24



The employees of the Police Department have 365 days of sick leave a year Each of these employees eam 144 hours of vacation each year After ten years of service, field workers get an additional 12 hours each year and office personnel get an additional 8 hours each year not to exceed 240 hours

The employees of the Fire Department have 365 days of sick leave a year Each of these employees eam 216 hours of vacation leave per year After ten years of service these employees get an additional 24 hours each year not to exceed 240 hours Employees who do not take any sick leave eam an additional 24 hours of vacation leave Also, employees who do not have any injunes on the job during the year eam an additional 24 hours of vacation leave Therefore, the maximum vacation an employee can eam is 360 hours A maximum of one-third of unused vacation shall be accumulated per year

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 fund liability of the govemmental fund that will pay it In the government-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

Equity Classifications

In the govemment-v«de statements, equity is classified as net assets and displayed in three components

a Invested in capital assets, net of related debt - Consists of capital assets including restncted capital assets, net of accumulated depreciation and reduced by the outstandmg balances of any bonds, mortgages, notes, or other borrowmgs that are attnbutable to the acquisition, construction, or improvement of those assets

b. Restncted net assets - Consists of net assets with constraints 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

c Unrestricted net assets - All other net assets that do not meet the definition of "restncted" or "invested in capital assets, net of related debt"

In the fund statements, govemmental fund equity is classified as fund balance The City adopted GASB Statement 54 for the year ended August 31, 2011. As such, fund balances of the govemmental funds are classified as follows

25

CITY OF OPELOUSAS, L0U1SL\NA


a Nonspendable - amounts that caimot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact

b Restncted - amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, 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 City's Mayor and Board of Aldermen, which is the highest level of decision-making authority for the City

d Assigned - amounts that do not meet the cntena to be classified as restncted 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 restncted and unrestricted fund balance is available, the City considers restncted funds to have been spent first When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City has provided otherwise in his commitment or assignment actions

In accordance v«th GASB Statement 54, beginning fund balance for the govemmental funds has been restated as of August 31, 2011

Proprietary fiind equity is classified the same as in the government-wide statements

Revenues. Expenditures, and Expenses

Operating Revenues and Expenses

Operating revenues and expenses for proprietary 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 financmg, noncapital financmg, or investmg activities

Expenditures/Expenses

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

26



In the fund financial statements, expenditures are classified as follows

Govemmental Funds - By Character Propnetary Fund - By Operating and Nonoperatmg

In the fund financial statements, govemmental funds report expenditures of financial resources Propnetary 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 fiinds have been eliminated

Revenue Restnctions

The City has various restnctions placed over certain revenue sources from state or local requirements The pnmary restricted revenue sources include

Revenue Source Legal Restrictions of Use

Sales tax See Note 4 Gas, water and sewer revenue Debt service and utility operations

The City uses unrestncted resources only when restricted resources are fully depleted

Budget and Budgetary Accounting

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

1 The City 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 beginmng 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

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

27



4 After the holding of the public hearing 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 funds from one department, program or function to another or involving increases in expenditures resulting from revenues exceeding amounts estimated require the approval of the Mayor.

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

7 Budgets for all fimds are adopted on a basis consistent with generally accepted accounting prmciples (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 City of Opelousas to capitalize matenal amounts of interest resulting from borrowmgs in the course of the constmction of capital assets in the Proprietary Fund At August 31, 2011, there were no bonowings for assets under constmction and no capitalized interest expense was recorded on the books

1 Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting pnnciples 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 dunng the reporting penod Actual results could differ from those estimates

J Reclassification of Prior Year Comparative Figures

Certain prior year comparatives have been reclassified to conform to the current year's presentation

K Other Post-Employment Benefits (OPEB)

The City does not provide any post-employment benefits to retirees other than pension and therefore is not required to report under GASB Statement No 45, Accounting and Financial Reporting by Employers for Post-employment Benefits Other Than Pensions

28



(2) Ad Valorem Taxes

Property taxes are levied each November 1 on the assessed value listed as of the pnor January 1 for all real property, merchandise and moveable property located in the parish Assessed values are established by the St Landry Pansh Assessor's Office and the State Tax Commission at percentages of actual value as specified by Louisiana law. Taxes are due and payable December 31 with interest being charged on payments after January 1 Taxes can be paid through the tax sale date, which is the last Wednesday in June Properties for which the taxes have not been paid are sold for the amount of the taxes For the calendar year ended December 31, 2010, the City levied taxes at 7 03 mills per dollar of assessed valuation on the property within the City for the purpose of providing govemmental services other than the payment of prmcipal and interest on long-term debt The amount of uncollected taxes at year end is not matenal and has not been booked

(3) Deficit Net Assets

The following individual funds had deficits m unrestricted net assets at August 31, 2011

Deficit Amount

Internal Service Fund A $(165,414) Intemal Service Fund G (435,410) Health Self Insurance Fund (539,837)

These deficits will be eliminated by increasing revenues and/or reducing expenditures

(4) Sales and Use Tax

A Proceeds of the 1% sales and use tax levied by authonty of a special election held on November 26, 1966 (2011 collections $3,843,548) are dedicated to the following purposes

Constmction and improving drainage works, purchasing, constmcting, and improving public parks and recreational facilities, and acquiring necessary equipment and furmshings therefore, acquiring, constmcting, improving, and operating a public library and acquiring the necessary land, equipment, and fumishings therefore, acquiring and constructmg waterworks improvements and extensions, opemng, constructing, paving, and improving streets and bridges, constmcting and purchasing street lighting facilities and acquinng and establishing an industrial park, title to all of which shall be public Defraying the cost of mamtaimng sewerage facilities Providing additional funds not to exceed $40,000 dollars annually for the payment of salanes for municipal employees

29



Proceeds of the 1% sales and use tax was initially levied by authority of a special election held on Apnl 5, 1975, and was extended through May 31, 2025 (2011 collections $3,843,548) are dedicated to the following purposes

To constructing, acquinng, improving and/or maintaining of garbage, waste disposal facilities, and waterworks facilities, to constmcting, acquinng, improving and/or maintaining police department stations and facilities, and fire department stations and facilities, to constructing, acquinng, improving, extending and/or maintaimng sewers and sewerage disposal works, streets, sidewalks, and bridges, and purchasing and acquinng the necessary land, equipment, and fumishmg for any of the aft>resaid public works, improvements and facilities, including salanes of employees

Proceeds of the 2% sales and use tax levied by authority of a special election held on October 3, 1993 (2011 collections $768,718) are dedicated for constmction, acquinng, and improving fire, police and street facilities

(5) Cash. Interest-Beanng Deposits

Under state law, the City may deposit funds within a fiscal agent bank orgamzed 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 City may invest in certificates and time deposits of the state banks organized under Louisiana law and national banks having principal offices in Louisiana At August 31, 2011, the City had cash and interest-beanng deposits (book balances) totaling $9,507,105

Custodial credit risk for deposits is the nsk that in the event of the failure of a depository financial institution, the City's deposits may not be recovered or will not be able to recover the collateral securities 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 msurance 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 summary of deposit balances (bank balances) at August 31, 2011, and the related federal insurance and pledged secunties

Institution

American Bank Hancock Bank Liberty Bank

Bank Balance

$3,381,135 3,381,135 2,898,115

$9,660,385

Amount Insured by FDIC

$250,000 250,000 250,000

$750,000

Amount Collateralized by Secunties held by 3rd Party Bank

$3,131,135 3,131,135 2,648,115

$8,910,385

30

(6)

(7)



Receivables

Receivables at August 31,2011 of $2,518,831 consist of the following

Accounts CLECO Loans Grants Assessments Interest Insruance Other

General $ -

------

18,387

$18,387

Restncted Assets

Other Govt Funds

$ ---

5,145 143,179 321,279

--

$469,603


$ ------

260.263 -

$260,263

ELWW $ 806,550

213,484 ------

$1,020,034

Sewer $620,126

-------

$620,126

OREC $ -

-130,418

-----

$130,418

Total $1,426,676

213,484 130,418

5,145 143,179 321,279 260,263

18,387

$2,518,831

The vanous bond mdentures contain significant limitations and restrictions on annual debt service requirements, mamtenance and flow of monies through vanous restricted accounts, minimum accounts to be maintained in various sinking fiinds, and minimum revenue bond coverage A summary of restncted assets by fund as of August 31, 2011 consist of the following

Construction Bond sinking accounts Bond reserve accounts Customers' deposits Ad valorem taxes paid in protest

General Fund

$ 5,138 -

51,893 -

3,004

Electric Light and Waterworks Fund

$2,213,718 9,127

2,206,687 887.047

-

Sewer Fund

$ 1,789 45,620

---

Total

$ 2.220,645 54,747

2.258,580 887,047

3,004

$60,035 $5.316,579 $47,409 $5,424,023

31



(8) Capital Assets

Capital assetactivityforthe year ended August 31, 2011 was as follows

(jovemmental activities Capital assets not bemg depreciated

Land Ck)nstmction in progress

Other capital assets Buildings Improvements other than buildmgs Eqmpment and machinery

Totals Less accumulated depreciation

Buildings Improvements other than buildmgs Equipment and machinery

Total accumulated depreciation

Govemmental activities, capital assets, net

Business-type activities* Capital assets not bemg depreciated

Land C>3nstmction m progress

Other capital assets Buildings Improvements other than buildmg Utility system Machinery and equipment

Totals Less accumulated depreciation

Buildings Improvements other than building Utility system Machinery and equipment

Total accumulated depreciation

Business-type activities, capital assets, net

Balance 09/01/10

$ 1,835,029 492,394

8.688,725 13,572,331 5,672,368

30,260,847

2,979,191 5,782,131 2,805,554

11,566,876

$18,693,971

$ 77,698 3,979,853

64,451 1,253.460

50,089,430 1,345,335

56,810,227

46,085 1,253,460

28,318,285 1,308,325

30,926,155

$25,884,072

Additions

$ 364,048

_ 622,557 643,453

1,630,058

170,718 556,436 378,116

1,105,270

$ 524,788

$ 275,196

_ 1,188,000

-15,346

1,478,542

1,119 631,984 532,970

6,935 1,173,008

$ 305,534

Deletions

$ 492,394

3,790 -

189,633 685,817

2,874 -

166,735 169,609

$ 516,208

$ 1,063.391

_ ---

1,063,391

_

---_

$1,063,391

Balance 08/31/11

$ 1,835.029 364,048

8,684,935 14,194,888 6,126,188

31,205,088

3,147,035 6,338,567 3,016,935

12,502,537

$18,702,551

$ 77,698 3,191,658

64.451 2,441,460

50,089,430 1,360,681

57,225,378

47,204 1,885,444

28,851,255 1,315,260

32,099,163

$25,126,215

32



Depreciation expense was charged to govemmental activities as follows.

General govemment $ 110,766 Pubhc safety 252,529 Public works 536,831 Culture and recreation 154,387 Health and welfare 49,380 Economic development 138 Internal service 1,239

Total depreciation expense $ 1,105,270

Depreciation expense was charged to business-type activifies as follows

Electnc Light and Waterworks 541,023 Sewer 631,985

Total depreciation expense $1,173,008

(9) Accounts Payable and Accmed Expenses

The accounts payable and accrued expenses consisted of the following at August 31, 2011

Sales Other General Tax Govt ELWW Sewer Total

Accounts payable Salaries payable Retirement payable Permit deposits payable Constmction payable Retainage payable Odier

$ 535,662 275,990 302,213 21.079

--

2.200

$ 1,422 ---

20,396 14,978

-

$52,972 ------

$112,582 22,382 3,749 ----

60,490 5,042

845 ----

$ 763,128 303,414 306,807 21,079 20,396 14.978 2,200

Totals $1,137,144 $36,796 $52,972 $138,713 $66,377 $1,432,002

33



(10) Long-Term Debt

Long-term debt payable at August 31, 2011 is compnsed of the following individual issues

Govemmental activities

General obligation bonds -

$4,590,000 Public Improvement Bonds, Senes 2005, due in annual installments of $385,000 to $565,000 through September 1,2020, interst at 4 45%, payable from Sales Tax revenues $4,225,000

Capital leases -

$500,000 lease-purchase agreement dated January 11, 2011 due in monthly installments of $11,191, including mterest at 3 51%, through January 22, 2015, secured by General Fund revenues $ 431,3 86

$81,596 equipment lease dated March 8, 2010, due in monthly installments of $1,494, including interest at 3 90%, through Febmary 8, 2015, secured by General Fund revenues. 57,268

$ 488,654

Municipal Police Employees' Retirement System -

$873,125 liability resulting from the merger of the City's pension obligations for retired members and beneficianes into the Municpal Police Employees' Retirement System of the State of Louisiana (MPERS), due in quarterly installments of $37,773, including interest of 7%, through October 1, 2013, payable from future revenues of the City $350,458

Compensated absences -

Portion of accumulated sick leave of the govemmetnal fiinds that are not expected to require current resources $ 828 200

34



Business-type activities

Revenue bonds -

$1,000,000 Utility Revenue Bonds, Series 1998, due in annual installments of $59,750 to $69,959 through September 1, 2018, interest at 2 45%, payable from sewer fiind revenues $ 415,000

$3,850,899 Utility Revenue Bonds, Senes 1999, due m annual installments of $217,755 to $133,484 through September 1, 2019, interest at 3 45%, payable from sewer fund revenues 1,825,898

$5,000,000 Utility Revenue Bonds, Series 2000, due in annual installments of $334,867 to $673,281 through September 1, 2021, interest at 3 45%, payable from sewer fiind revenues 3,780,241

$2,200,000 Utility Revenue Bonds, Series 2003, due in annual installments of $58,755 to $166,513 through September 1, 2024, interest at 3 45%, payable from sewer fimd revenues 1,613,885

$2,315,000 Utility Revenue Bonds, Senes 2004, due m annual installments of $15,000 to $275,000 through September 1, 2015, interest at 3 65%, payable from electnc light and waterworks revenues 1,040,000

$7,800,000 Utility Revenue Bonds, Senes 2006, due m aimual installments of $195,000 to $635,000 through September 1, 2025, interest at 4% to 5%, payable from electnc light and waterworks revenues 6,495,000

$1,500,000 Utility Revenue Bonds, Series 2007, due in annual installments of $215,000 to $285,000 beginning September 1, 2016 through September 1, 2021, payable from electric light and waterworks revenues \ 500,000

$ 16,670,024

35

CITY OF OPELOUSAS, L0U1SL\NA


The following is a summary of long-term debt transactions of the City for the year ended August 31. 2011

Governmental Activities

Bonds Payable

Public Improvement

Bonds, Series 2005

Capital leases

Municpal Police Employees'

Retirement System payable

Compensated absences payable

Balances

9/1/10

$ 4,590,000

269,653

474,864

851,914

Additions

$ -

500,000

--

Reductions

$ 365,000

280,999

124,406

23,714

Balances

8/31/11

$ 4,225,000

488,654

350,458

828,200

Due Withm

One Year

$ 385,000

136,873

133,114

16,960

Total govemmetental activities $ 6,186,431 $500,000 $ 794,119 $ 5,892,312 $ 671,947

Busmess-type Activities

Accrued compensated absences

Electric Light and Waterworks

Sewer

Utility Revenue Bonds

Refunding Bonds,

Senes 1998-Sewer

Senes 1999-Sewer

Senes 2000-Sewer Senes 2003-Sewer

Senes 2004-Water

Senes 2006-Water Senes 2007-Water

Total busmess-type activities

Total long-term obligations

$ 56,840 $ -

14,227

465,000

2,030,908

3,936,498 1,830,632

1,270,000

6,790,000 1,500.000

17,894,105

$24,080,536 $500,000

$ 1,831

401

50,000

205,009

156,257 216,747

230,000

295,000 -

1,155,245

$1,949,364

$ 55,009

13,826

415,000

1,825,899

3,780,241 1,613,885

1,040,000

6,495,000 1,500,000

16,738,860

$22,631,172

$

-

55,000

215,000

270,000 107,000

245,000

310,000 -

1,202,000

$1,873,947

36



The annual debt service requirements includmg interest to amortize all long-term obligations outstanding at August 31, 2011 are as follows

Govemmental Activities

Year Ending

August 31,

2012 2013 2014 2015 2016

2017-2020

Less mterest

Net

Public Improvement

Bonds

$ 573,013 570,880 573,080 579,390 579,588

2,350.320

5,226,271

(1,001,271)

$ 4,225,000

Capital Leases

$152,219 152.215 152,217 63,401

520,052

(31.398)

$488,654

Police Employees' Retirement

$ 151,092 151,092 75.546

377,730

(27,272)

$ 350.458

Business-type Activities

Year Ending

August 31,

2012 2013 2014 2015 2016

2017-2021

2022-2025

Total

Less mterest DEQfee

Net

Senes 1998

$67,242 60,840 63,998 67,375 65.605

135,753

460,813

(37,713) (8,100)

415,000

Series 1999

$ 287,123 288,631 289.743 285.460 285,980 708,010

-

2.144,947

(278,663) (40,386)

1,825,898

Utility Revenue Bonds Senes 2000

$ 419,320 413,655 412,792 411,535 404,882

2,676,424 -

4,738,608

(840,393) (117,974)

3,780,241

Senes 2003

$ 170,748 170,522 170,137 170,595 170,855 852,262

355,728

2,060,847

(393,587) (53,375)

1,613,885

Senes 2004

$282,960 284,018 284,710 285,038

---

1,136.726

(96,726) -

1,040,000

Senes 2006

$ 581,528 588,353 594,328 594.453 618,940

3,186,450

2,615,290

8,779,342

(2,284,342) -

6,495,000

Senes 2007

$ 67.950 67,950 67.950 67,950 67.950

1,680,747 -

2.020.497

(520.497) -

1,500,000

Compensated absences payable is not amortizable because the timing of the payouts are based on factors outside the City's control

37



On Febmary 3, 2009, the City of Opelousas entered into an operative lease for the Orphan Tram Museum for a total cost of $100 which was paid in full on March 3, 2009 The lease was for a term of 100 years beginmng Febmary 3, 2009 with the option to renew for an additional 100 years

(11) Emplovee Retirement

A Municipal Employees' Retirement System of Louisiana (System)

Plan Descnption - All full-time employees on a permanent basis working at least 35 hours per week, not participating in another public funded retirement system and under age 60 at date of employment are eligible Those individuals paid jointly by a participatmg employer and the parish are not eligible for membership in the System Under Plan A, employees who retire at or after age 60 with at least 10 years of credited service, at or after age 55 Math 25 years of credited service, or at any age with 30 or more years of creditable service are entitled to a retirement benefit, payable monthly for life, equal to 3 percent of their final compensation multiplied by the employee's years of credited service Final compensation is the employee's monthly earnings dunng the 36 consecutive or joined months that produce the highest average The System also provides death and disability benefits. Benefits are established by state statute

The System issues a publicly available financial report that includes financial statements and required supplemental information That report may be obtained by writing to Municipal Employees' Renrement System of Louisiana.

Funding Policy - Plan members are required to contnbute 9 25 percent of their annual salary and the City is required to contribute at an actuanally determined rate The City was required to contnbute 14 25% of the annual covered payroll until June 30, 2011 As of July 1, 2011, the current rate was changed to 16 75% of annual covered payroll The contribution reqmrements of the plan members and the City are established and may be amended by the System's Board of Trustees The City's contnbutions to the System for the years ended August 31, 2011. 2010, and 2009 were $588,228. $522,559. $470,263, respectively, equal to the required contnbutions for each year

B Mimicipal Police Employees Retirement System of Louisiana (System)

Plan Descnption - All full-time police department employees engaged in law enforcement are eligible to participate m 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 accrued to their date of termination The System also provides death and disability benefits Benefits are established by state statute

38



The System issues an annual publicly available financial report that mcludes 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 7 5% of their aimual covered salary until June 30, 2011 As of July 1, 2011, the current rate was changed to 10% of their armual covered salary The City is required to contnbute at an actuarially determined rate The rate was 25% of armual covered payroll until June 30, 2011 As of July 1, 2011, the current rate was changed to 26 5% 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 RS 11 103, the employer contnbutions 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 August 31, 2011, 2010, and 2009 were $810,973. $445,311. and $277,528, respectively, equal to the required contributions for each year

State of Louisiana-Firefighters' Retirement System (System)

Plan Descnption - All fiill-time fire department employees are eligible to participate in the System Employees who retire at or after age 50 with at least 20 years of credited service, or at or after age 55 with at least 12 years of credited service are entitled to a retirement benefit payable monthly for life, equal to 3 1/3 percent of their average final compensation multiplied by the employee's years of credited service Final compensation is the employee's monthly eammgs during the 36 consecutive or joined months that produce the highest average. The System also provides death and disability benefits Benefits are established by state statute

The Firefighters' Retirement System issues a publicly available financial report that includes financial statements and required supplemental information That report may be obtamed by writing to Firefighters' Retirement System

Funding Policy - Plan members were required to contribute 8% of their annual covered salary until June 30, 2011 As of July 1, 2011, the current rate was changed to 10% of armual covered salary The City is required to contribute at an actuanally determined rate This rate was 21 5% of annual covered payroll until June 30, 2011 As of July 1, 2011. the rate changed to 23 25% of annual covered payroll The contribution requirements of Plan members are established and may be amended by the System's Board of Tmstees The City's contributions to the System for the years ended August 31, 2011, 2010, and 2009 were $480,727, $377,936, and $269,250, respectively, equal to the required contnbutions for each year

39



B Louisiana State Employees' Retirement System (LASERS)

Plan Descnption - All full-time employees are eligible Employees who retire with 30 years of credited service at any age, or at or after age 55 with at least 25 years of credited service, or at or after age 60 with at least 10 years of credited service, or with 20 years of credited service at any age with actuanally reduced benefits are entitled to a retirement benefit payable monthly for life, equal to 2 5% of their final average compensation for every year of creditable service An additional $300 is applied if they joined LASERS before July 1, 1986 Benefits may not exceed 100% of four final average compensations Most employees reach 100% of final average compensation at 40 years of membership service credit Final average compensation is the average annual eamed compensation received dunng the 36 highest months of successive employment, or the highest joined months of employment if service was mtermpted Averages for part-time service are based on pay that would have been received if employment had been full-time The System also provides death and disability benefits

The Louisiana State Employees' Retirement System issues a publicly available financial report that mcludes financial statements and requires supplemental information That report may be obtained by writing to LASERS

Funding Policy - Plan members are required to contnbute 11 5% of their annual covered salary The City was required to contnbute 22% of annual covered payroll as established by the State of Louisiana until June 30, 2011 As of July 1, 2011, the rate was changed to 31 8% of aimual covered payroll The City's contnbutions to the System for the years ended August 31. 2011. 2010, and 2009 were $7,951, $6,568, and $6,271, respectively, equal to the required contnbutions each year

(12) Litigation and Claims

At August 31, 2011, the City is involved m several lawsuits claiming damages In the opinion of the City's legal counsel, the only exposure to the City would be any costs in defense of the lawsuits with no liability to the City in excess of insurance coverage The City 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 City would be administrative fees with no liability in excess of insurance coverage See Note 13

(13) Risk Management

A Self-Insurance

The City maintains vanous self-insurance accounts for general and auto liability, workmen's compensation benefits and health insurance (accounted for in Intemal Service Fund G. Workmen's Compensation Fund and Health Self Insurance Fund, respectively) as of August 31, 2011 Most fiinds of the City participate m the self-insurance fiinds by making payments based on premiums necessary to cover claims, administrative costs, and commercial insurance premiums, if applicable

40



For the fiscal year ending August 31. 2011, the City was self-insured for the first $300,000 of each claim relating to workmen's compensation insurance The City IS covered under an insurance contract for the excess liability

For the fiscal year ending August 31, 2011. the City had two plans relating to the heahh insurance If the individual is covered under the first plan, the City was self-insured for the first $60,000 per person and the insurance company would cover the difference. If the individual is covered under the second plan, the City was self-insured for the fu-st $40,000 per person and insurance stops paying claims

A reconciliation of claims liabilities which is included in the financial statements as accounts payable and accmed expenses and claims payable for the self-insurance funds follows

pnning balance

Claims incurred Claims paid

img balance

Intemal Service FundG

$ 420,000

8,335 (141,594)

$ 286,741

Workmen's Compensation Fund

$ -

564,894 (564.894)

$ -

Health Self Insurance Fund

$ 167,516

1.943,821 (1,641,270)

$ 470.067

Total

$ 587.516

2.517.050 (2,347,758)

$ 756,808

(14) Commitments and Contingencies

The City received fiinding under grants from vanous federal and state agencies The agency grants specify the purpose for which the grant monies are to be used The grants are subject to audit by the granting agency or its representative

41



(15) Interfund Receivables/Pavables

A A summary of interfund receivables and payables at August 31. 2011 follows

Major govemmental funds General Fund Sales Tax Fund

Non-major Special Revenue Funds

Proprietary fimds Electric Light and Waterworks Fund Sewer Fund

Non-major propnetary fimd

Intemal Service Fund A Intemal Service Fund G Health Self Insurance Fund

Total

Interfund Receivables

$ 924.296 729,828

160,912

79,445

$ 1,894,481

Interfund Payables

$ 615.464

22.544

336.074 35.949

5

245,000 144,445 495.000

$ 1,894,481

Transfers consisted of the following at August 31. 2011

Major govemmental funds General Fund Sales Tax Special Revenue Fund

Propnetary fimds Electnc Light and Waterworks Fund Sewer Fund

Total

Transfers In

$ 12,994.172 -

1,325,000 560,000

$14,879,172

Transfers Out

$ 11,609,172

2,870,000 400,000

$14,879,172

Transfers are used to (a) move revenues from the fiind 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 m the general fund to finance various programs accounted for in other fiinds in accordance with budgetary authonzations.

42



(16) Segment Information for the Enterprise Fund

The City of Opelousas maintains two enterpnse funds, each with one department, which provide water and sewerage services Segment information for the year ended August 31, 2011, was as follows

Operating revenues

Operating expenses Depreciation Other


Operating mcome

Electnc Lights and

Waterworks

$3,969,904

572,764 2,098,652

2,671,416

$1,298,488

Sewer Department

$ 1,748,748

636,212 874,257

1,510,469

$ 238.279

Total Enterpnse

Funds

$5,718,652

1,208,976 2,972,909

4.181,885

$1,536,767

(17) Accounts Receivable - Utility Funds

As of August 31, 2011. the customer receivables recorded m the Electric Light and Waterworks Fund and Sewer Fund are net of allowances for uncollectible accounts These allowances are $255,974 and $226,996, respectively

As of August 31, 2011, customer receivables include unbilled revenue for the Electric Light and Waterworks Fund and Sewer Fund of $449,515 and $398,626, respectively These amounts represent revenue eamed which is not billed until the next billing cycle

Billed accounts receivable Unbilled accounts receivable Allowance for uncollectibles

Net accounts receivable

ELWW Sewer Total

$613,009 449,515

(255.974)

$806,550

$448,496 398,626

(226-996)

$620,126

$1,061,505 848,141

(482.970)

$1,426,676

43


Notes to Financial Statements (ConUnued)

(18) Compensation of Town Officials

A detail of compensation paid to the Mayor and Board of Aldermen for the year ended August 31,2011 follows

Donald Cravins, Mayor

Aldermen Julius Alsander Louis Butler Jr Blair Briggs Reggie Tatum Jackie Martin Joe Charles Dale Pefferkom Harvey Darboime

Salary Car

Allowance Total

$ 71,739 $ 7,980 $ 79,719

16,390 16.390 12,293 17,659 16,390 13,244 4,098 4,415

$172,618

4.200 4,200 2.800 4.200 4.200 2,800 1,400 1,400

$ 33,180

20,590 20.590 15,093 21,859 20,590 16.044 5,498 5,815

$205,798

(19) Enterprise Fund Contracts

A. Franchise Agreement with CLECO

On May 14, 1991. the City of Opelousas entered into a Franchise Agreement with Central Louisiana Electnc Company. Inc (CLECO) for operating and distributing electricity within the corporate limits of the City The primary term of this Agreement shall be for a period of 10 years from August 11, 1991 to August 11, 2001, with the option granted to CLECO to renew such Agreement for 3 additional 10 year periods The City of Opelousas renewed this agreement for a second period of 10 years from August 11, 2011 to August 11, 2021

The City shall continue to ovm its electnc distnbution system within the City, but enters into an operating Agreement with CLECO whereby CLECO is granted the full nght to use and operate same and to repair and replace Imes, poles, and other equipment as and when deemed necessary for the purpose of efficiently maintaining the system The electnc distnbution system does not include the City's power plant and CLECO has no rights or obligations relative to the power plant All improvements made by CLECO are to be purchased by the City at the end of the lease at cost less depreciation

Under the terms of the Agreement, that for and m consideration of the city granting to CLECO the franchise and the right to use the City's electric distribution system, CLECO binds and obligates itself to pay the following

1 The sum of $ 1,200,000 upon execution of the Agreement

44

CITY OF OPELOUSAS, LOUISL^>IA


2 A monthly payment of $170,00 for 120 months beginning August 11, 2001 for operations

3 A franchise fee of equal to 4% of the amounts received by CLECO from the sale and delivery of electnc energy at retail for residential and commercial purposes, commencing August 11, 2011 This amount shall be paid monthly and the annual amount shall be no less than $350,000

CLECO shall also bill and collect for and on behalf of the City a consumer service charge, the amount of which will be added to each consumer's bill on a cost per kilowatt-hour basis The amount of this surcharge shall be determined by the Mayor and Board of Aldermen of the City

B Franchise Agreement with SLEMCO

On March 1, 2006, the City of Opelousas entered into a franchise agreement with Southwest Louisiana Membership Corporation (SLEMCO) for operating and distnbutmg electncity v/ithin the corporate limits of the City of Opelousas, with the exception of the "Excluded Area " The excluded area is defined as all areas that were within the Opelousas city limits as those city limits existed in August, 1991 when the City leased its city-owned electrical system to Central Louisiana Electnc Company (CLECO)

The pnmary term of the agreement shall be for a period of 6 years and 6 months commencing on March 1, 2006 and ending on August 11, 2011 The City of Opelousas renewed this agreement for a period of 10 years from August 11, 2011 to August 11, 2021

The City entered into an operating agreement with SLEMCO whereby SLEMCO is granted the nght and privilege of constructing, erecting, maintaining, and operating SLEMCO's electric transmission and distribution lines and systems, for the purpose of selling, servicing, handling, and distributing electricity and electnc energy within the corporate limits of the City as they existed on March 1, 2006 and as thereafter extended on SLEMCO lines, including poles, lines, wires, insulators, transformers, services, arms, braces, guys, and all other necessary or usual attachments and appurtenances, along, across, over, under and on the streets, lanes, highways, public roads, and other pubhc places in the City, with the exception of the "Excluded Area "

Under the terms of the agreement, that for and in consideration of the City granting to SLEMCO the franchise and the nght to operate SLEMCO's electric transmission and distnbution line and systems, SLEMCO binds and obligates itself to pay the following

1 The sum of $373,708 upon execution of the agreement 2 A monthly franchise fee of equal to 4% of gross revenue collected by SLEMCO

from its retail sale and delivery of electric energy in the City

(20) Subsequent Event Review

The City has evaluated subsequent events through Febmary 28, 2012, the date which the financial statements were available to be issued.

45

REQUIRED SUPPLEMENTARY INFORMATION

46

CITY OF OPELOUSAS. LOUISIANA General Fund

Budgetary Comparison Schedule For the Year Ended August 31, 2011

Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Other

Total revenues


General government Public safety Public works Health and welfare Culture and recreation Economic development


Principal retirement Interest and fiscal charges

Total expenditures


Other financing sources (uses) Proceeds from capital lease Sale of capital assets Transfers in


Excess of revenues and other sources over expenditures and other uses

Fund balances (deficit), beginnmg

Fund balances (deficit), ending

Budget Ongmal

$ 2,190,500 $

857,450 1,217,685

170,675 115.000 296,214

4,847,524

Final

2,206.000

854,400 1.474.703

151.875 92.000

281.414

5,060.392

Actual

$ 2,267.168

855,790 1,754,059

138,430 95,341

294,091

5,404,879

Variance with Final Budget

Positive

(Negative)

$ 61,168

1,390 279,356 (13,445)

3,341 12,677

344,487

2,295.205 8,878,809 2,050,110

570.301 1,846,604

183.758 343.428

500.005 228.130

16,896.350

(12,048.826)

.

-12,260.000

12,260.000

211.174

(711,708)

$ (500,534)

2,329,715 9.351,078 2,016,135

523.040 1,795,672

141,025 1.096.365

488,700 227,430

17,969,160

(12,908,768)

500,000 27,000

13,094,200

13,621,200

712,432

(711,708)

$ 724

2,245,903 9.295,719 2,001.093

496,696 1.663,248

143,483 1.125,268

645,999 219.955

17,837.364

(12,432.485)

500.000 24.789

12,994,172

13,518,961

1.086.476

(711,708)

$ 374.768

83,812 55,359 15,042 26,344

132,424 (2,458)

(28,903)

(157.299) 7.475

131,796

476.283

.

(2.2U) (100.028)

(102.239)

374.044

_

$ 374,044

47

CrrY OF OPELOUSAS, LOUISL^NA Sales Tax Special Revenue Fund

Budgetary Comparison Schedule For the Year Ended August 31,2011

Revenues Taxes Other

Total revenues


General govemment Culture and recreation

Capital outlay

Total expenditures


Other financing uses Transfers in (out)

Budget Original

$ 8.600,000 128,000

8,728.000

112,500 253.000

365,500

8.362,500

(10,945,000)

$

_

{

Final

8,600,000 1,235,000 9.835,000

119,600 253,000 161,844

534,444

9,300.556

11,609,200)

Actual

$ 8,455,814 1,222,560 9,678,374

115,558 253,000 299,568 668,126

9,010,248

(11.609.172)


Positive (Negative)

$(144,186) (12,440)

(156,626)

4,042

(137.724)

(133,682)

(290,308)

28

Deficiency of revenues and other sources over expenditures and other uses

Fund balances, beginning

Fund balances (deficit), endmg

(2,582,500) (2,308,644) (2,598.924) (290.280)

4.199,189 4,199,189 4,199,189

$ 1.616,689 $ 1.890.545 $ 1,600.265 $(290,280)

48

OTHER SUPPLEMENTARY INFORMATION

49

OTHER FINANCIAL INFORMATION

50

CITY OF OPELOUSAS, LOUISLA.NA General and Sales Tax Funds

Balance Sheet August 31, 2011

With Comparative Actual Amounts for August 31, 2010

ASSETS

Cunent assets Cash and cash equivalents Receivables Due from other funds Due from other govemmental units Inventory

Total cunent assets

General 2011

$1,092,330 18,390

924,296 408,198 38,563

2,481.777

$

2010

395,246 146,188 740.865 292.683

40.130 1,615,112

Sales Tax 2011

$ 907,233 -

729,828 --

1,637.061

2010

$3,495,565 362,412 700,000

--

4,557,977

Noncurrent assets Restncted assets

Cash and cash equivalents Total assets

LL^ILITIES AND FUND BALANCES

Liabilities. Accounts and other payables Contracts payable Retainage payable Accmed compensated absences Deferred revenue - protest taxes Due to other fimds Due to other govemmental units

Total liabilities

Fund balances (deficit) -Nonspendable - prepaid items Restncted - debt service Restncted - sales tax dedications Assigned - capital expenditures Unassigned

Total fund balances (deficit)

Total liabilities and fiind balances

60,035 $2,541,812

$1,137,145 --

16.960 3,004

615.464 394.471

2.167,044

38,563 51.893

-5,138

279,174

374,768

$2,541,812

256,828 $ 1,871,940

$ 1,568,181 48,793 37.408 29,413 2,950

502,432 394,471

2,583,648

40,130 94,024

-159,854

(1.005,716) (711.708)

$ 1,871,940

-

$1,637,061

$ 1,422 20,396 14,978

----

36,796

--

1.600,265 --

1,600,265

$1,637,061

-

$4,557,977

$ 358,788 ------

358,788

--

4,199,189 --

4,199,189

$4,557,977

51

CFFY OF OPELOUSAS. LOUISL\NA General Fund

Budgetary Companson Schedule For the Year Ended August 31, 2011

With Comparative Actual Amounts for August 31,2010

2011

Revenues Taxes Licenses and permits Intergovernmental Charges for services Fmes and forfeits Miscellaneous

Total revenues


General govemment Public safety Public works Health and welfare Culture and recreation Economic development


Principal retirement Interest and fiscal charges

Total expenditures


Other financmg sources (uses) Proceeds from capital lease Sale of capital assets Transfers m Transfers out


Net changes m fimd balances

Fund balances (deficit), beginnmg

Fund balances (deficit), ending

Budget

$ 2,206.000 854,400

1,474,703 151.875 92,000

281,414

5,060.392

2,329,715 9.351,078 2.016,135

523,040 1,795,672

141.025 1,096,365

488,700 227,430

17,969.160

(12,908.768)

500.000 27,000

13,094,200 -

13,621,200

712,432

(711,708)

$ 724

Actual

$ 2.267,168 855,790

1,754,059 138,430 95,341

294.091

5,404,879

2.245,903 9,295.719 2.001,093

496,696 1,663,248

143,483 1,125.268

645,999 219,955

17.837,364

(12,432,485)

500,000 24,789

12,994,172 -

13,518,961

1,086,476

(711,708)

$ 374,768

Vanance with Budget Positive

(Negative)

$ 61,168 1.390

279.356 (13.445)

3.341 12,677

344,487

83,812 55,359 15,042 26.344

132,424 (2,458)

(28,903)

(157.299) 7,475

131,796

476.283

-(2,211)

(100.028) -

(102.239)

374.044

-

$ 374,044

2010 Actual

$ 2,130,800 837,929

1,588,029 169,547 115,949 329.117

5,171,371

2,157,146 8,693,743 2,079.474

446,407 1.686,241

196,719 1,447,839

518,443 232,641

17,458,653

(12.287,282)

81,596 -

10,847.314 (395,000)

10,533,910

(1.753,372)

1.041,664

$ (711,708)

52

CITY OF OPELOUSAS, LOUISIANA General Fund

Budgetary Comparison Schedule - Revenues For the YearEnded August 31, 2011

With Comparative Actual Amounts for the Year Ended August 31 2010

2011

Taxes Ad valorem Franchise Hotel/Motel

Total taxes

Licenses and permits Occupational licenses Beer and liquor permits Building permits Other

Total licenses and pemiits

Intergovernmental Federal sources -

FEMA Fu-efighter Training Grant ACT 562 Training Grant LA Hwy Safety Commission Grant DARE Reimbursement Grant Integrated Criminal APPR Grant JAG Grant Historic Preservation Fund Grant Cherry Street Park project Hazard Mitigation Grant Streetscape Grant

State of Louisiana sources -Beer taxes Highway maintenance Video poker Insurance rebate Orphan Train Grant AmeriCorps Vista Grant Bayou drainage project Miscellaneous tourism grants Miscellaneous police grants

Other sources -Housing authority Racino revenue LACE program Solid waste road appropriation DBA reimbursements Pansh Govemment reimbursement -

Prisoner housing Tourist salanes

Total intergovernmental

Budget Original

$ 932,000 1,168,500

90,000 2,190.500

790,000 42,000 6,550

18,900 857.450

50,703 -

20.000 33,000

------

32,000 15,000

106,000 70,000

385,000 10,000

-3,982 -

-400,000 60,000

-7,000

20,000 5,000

1,217,685

Fmal

$ 1,012,000 1.102.000

92,000 2.206,000

795,000 42,000 9.000 8,400

854.400

50.703 4,000

20.000 63,000 14,000

-4,000

97,000 -

75,000

37,000 10,000

100,000 70,000

385,000 10,000 20,000

-50,000

-312.000 125.000

-18,000

5,000 5,000

1,474,703

Actual

$1,005,115 1,167.006

95.047 2,267,168

799,857 39,610 8,145 8,178

855.790

45.375 4,000

23,669 62,021 13.551 22,508 3,982

156,977 35.000 74.905

45,069 14.890 86,695 67,932

385.000 7,000

19,479 -

50,000

68,932 363,964 178,677

-20.807

-3.626

1,754,059

Variance with Fmal Budget

Positive (Negative)

$ (6,885) 65.006 3.047

61,168

4,857 (2,390)

(855) (222)

1,390

(5,328) -

3.669 (979) (449)

22,508 (18)

59.977 35.000

(95)

8.069 4,890

(13.305) (2,068)

-(3.000)

(521) --

68,932 51,964 53,677

-2,807

(5,000) (1,374)

279,356

2010 Actual

$ 922,356 1.134,467

73,977 2,130,800

776,833 41,341

7,169 12,586

837,929

-1,200

49,912 38.623 5,682 -

4,146 ---

46.603 14,890 97,395 62,078

486,351 19,888

-2,474

18.030

92,666 370.012 138,600 96,447 12,334

25,708 4,990

1,588,029

(continued)

53

aTY OF OPELOUSAS, LOUISIANA General Fund

Budgetary Comparison Schedule - Revenues (Continued) For the Year Ended August 31, 2011

With Comparative Actual Amounts for the Year Ended August 31, 2010

2011

Charges for Services Inspection fees Park fees Sports sponsorships Grass cutting Police security Other

Total charges for services

Fmes and court costs

Miscellaneous Interest Tourism Donations Rent Cable - pole rental spied and Music festival Workers compensation Insurance reimbursement Other sources

Total miscellaneous

Total revenues

Budget Ongmal

74,000 73.450 9,000 5,000 -

9,225 170.675

115,000

62,000 23,450 -

88,164 29,000 65.000

--

28.600 296,214

$4,847,524

Final

45,000 73,150 9,800

12.500 1,000

10,425 151,875

92,000

16.500 23,350 -

81,964 29,000 32,000

--

98,600

281,414

$ 5,060,392

Actual

33,784 69,456 8,955

13.484 781

11,970 138.430

95.341

17,141 25,021

950 78,589

-30.811 21,899

-119,680 294,091

$5,404,879

Vanance with Final Budget

Positive (Negative)

(11,216) (3,694)

(845) 984

(219) 1.545

(13.445)

3.341

641 1.671

950 (3.375)

(29,000) (1.189) 21,899

-21,080 12,677

$344,487

2010 Actual

76,145 65,613 8,628 7,312 2,175 9,674

169,547

115,949

50,785 25.288

8,265 96.302 28,890 34,895 32,466 10,537 41.689

329,117

$5,171,371

54


Budgetary Companson Schedule - Expenditures For the Year Ended August 31, 2011


2011

Current General govemment -

Executive Personal services Supplies and matenals Other services and charges Repairs and maintenance Allocated expenditures -

services performed for for other departments

Judicial City Court -

Personal services Supplies and matenals Other services and charges Repairs and maintenance

Marshall's office -Personal services Supplies and matenals Other services and charges Repairs and mamtenance

Administration Purchasing -

Personal services Supplies and matenals Other services and charges Repairs and maintenance

Civil Service -Personal services Supplies and matenals Other services and charges Repairs and mamtenance

General -Supplies and matenals Other services and charges Repairs and maintenance

Total genera] govemment

Budget Original

$ 1.065,353 $ 55,950

355,216 57,255

(315,300)

385.230 10,000 92.509

8.000

195,503 962

4,135 4.600

95,627 2,850 8,750

11,164

110,007 1,861

14,049 150

12,500 58,834 60.000

2.295,205

Final

1,020,903 46,950

407,366 41,300

(315.300)

385.930 11,200 76,080 22,529

195,503 1.125 4,485 7,370

113,100 2,425

10,800 9.700

108,402 1,953

14,110 150

11,000 47.634

105,000

2.329,715

Actual

$ 987,663 45,179

429,527 35.786

(308.500)

384.076 13.442 76,323 19,880

198.701 1,145 4,677 7,367

110.387 1.632

11.306 5,447

105.199 1.898

14,129 -

9,079 42,075 49.485

2,245,903


Positive (Negative)

$ 33.240 1,771

(22,161) 5.514

(6,800)

1.854 (2.242)

(243) 2.649

(3,198) (20)

(192) 3

2.713 793

(506) 4.253

3.203 55

(19) 150

1.921 5,559

55,515

83,812

2010 Actual

$ 929,923 69.056

422.812 101,481

(301,592)

341,801 15.408 67,554 17,185

192,996 1,305 4,955 9,002

91,071 1.139 8,111 4.214

102.735 4.355 7.412

138

9,322 32,117 24.646

2,157,146

(continued)

55

CITY OF OPELOUSAS. LOUISIANA General Fund

Budgetary Companson Schedule - Expenditures (Continued) For the Year Ended August 31, 2011


2011

Public Safety -Police

Personal services Supplies and materials Other services and charges Repairs and maintenance

Fire department Personal services Supplies and materials Other services and charges Repairs and maintenance

Total public safety

Public Works -Streets and drainage


Municipal garage Personal services Supplies and matenals Other services and charges Repairs and maintenance

Total public works

Health and Welfare -Code enforcement


Total health and welfare

Budgel Onginal

4,684.477 120,500 518,510 336.500

2.954,882 76,000

122,440 65.500

8.878,809

1.250,247 50.000

375,978 135,600

195,879 17,064 7,136

18,206

2,050,110

442,691 11.750 97,150 18,710

570.301

Final

4.909,542 130,176 561,800 456,100

3,038,550 72,500

116,910 65.500

9,351,078

1,253.545 50,000

347.940 178.450

153.000 18,575 6,750 7,875

2,016,135

392,330 16,100 94,560 20,050

523.040

Actual

4.955.834 125.249 613.797 433.034

2.962,203 35,240

105,744 64,618

9.295,719

1,225,745 55,259

368,543 184.229

140.437 16.042 6,192 4.646

2,001,093

377,424 8,899

90.186 20,187

496,696


Positive (Negative)

(46,292) 4,927

(51,997) 23.066

76,347 37.260 11.166

882

55,359

27,800 (5,259)

(20,603) (5,779)

12,563 2,533

558 3,229

15,042

14,906 7,201 4,374 (137)

26,344

2010 Actual

4.315,515 136.226 662,662 422.365

2,911,696 54,560

122,911 67,808

8.693,743

1,188.175 65,585

420.447 255.145

120.461 11,366 4.033

14.262

2.079,474

334,240 8,170

82,998 20,999

446,407

(continued)

56




2011

Culture and recreation -Recreation Division

Personal services Supplies and matenals Other services and charges

Parks admimstraUon Personal services Supplies and materials Other services and charges Repairs and maintenance

Tounsm Personal services Supplies and materials Other services and charges Repairs and maintenance

Museum Personal services Supplies and matenals Other services and charges Repairs and maintenance

Total culture and recreation

Economic development -Community Development


Total economic development

Budget Ongina!

133.268 24.300 49,000

711,177 38.500

171,515 112,667

214,470 17,400

167,932 53,575

99,068 5.050

37,782 10,900

1,846,604

122,145 2.325

58,088 1,200

183,758

Fmal

108,268 23,650 43,400

709,027 38,500

167,215 120,667

196,620 18,300

163,650 53,575

94.068 6.550

39.582 12.600

1,795,672

90.350 575

49,550 550

141.025

Actual

93.478 17,228 36.205

701.263 34,767

166,199 71,818

171.505 14,687

158.046 53.770

92,836 6,350

33,427 11,669

1,663,248

89,007 439

53.603 434

143.483

Vanance with Fmal Budgel

Positive (Negative)

14,790 6,422 7,195

7,764 3,733 1.016

48.849

25.115 3,613 5.604 (195)

1,232 200

6.155 931

132,424

1,343 136

(4.053) 116

(2.458)

2010 Actual

106,077 26,133 35,328

683.654 44,308

140,651 93,843

179,287 21,954

159,704 73,690

79,136 5,833

21,934 14.709

1,686,241

137,014 851

58,852 2

196,719

(continued)

57




2011

Capita! outlay -General govemment

Executive Administration General

Public safety Police department Fire department

Public works Streets and drainage

Health and welfare Code enforcement

Culture and recreation Parks administration Tounsm

Museum Total capital outlay

Debt service -Retirement of pnncipal Interest Commissions

Total debt service

Total expenditures

Budget Onginal

2.000

45.000

-55,803

-

41,453

155.000 44.172

-

343.428

500.005 227,830

300

728.135

$16,896,350

Final

7.600

57,000

519.335 55.803

44,150

87,500

149.000 175,977

-

1,096,365

488.700 227.130

300

716.130

$17,969,160

Actual

-

100.814

532,887 81.791

93,076

60,000

129,795 126,905

-

1,125,268

645,999 219,655

300

865,954

$17,837,364


Positive (Negative)

7,600

(43.814)

(13,552) (25.988)

(48.926)

27,500

19,205 49,072

-

(28,903)

(157.299) 7,475 -

(149,824)

$ 131,796

2010 Actual

101,100

175,437

116,215 28.695

133,381

259,462

371,638 260,911

1,000

1.447,839

518.443 232,341

300

751.084

$17,458,653

58

CITY OF OPELOUSAS, LOUISIANA Special Revenue Fund

Sales Tax Fund

Budgetaiy Companson Schedule For the Year Ended August 31,2011

With Comparative Actual Amounts for the Year Ended August 31,2010

2011

Revenues Taxes Other

Total revenues

Budget Onginal Fmal

$ 8,600.000 $ 8,600,000 128,000 1.235.000

8,728,000 9,835,000

Actual

$ 8,455.814 1,222,560 9.678.374


PosiUve (Negative)

$(144,186) (12,440)

(156,626)

2010 Actual

$ 8.369.759 107,389

8,477.148

Expenditures Current-

General government Other services and charges Repairs and mamtenance Allocated expenditures for services

performed by other departments Executive -

Other services and charges

107.500 5.000

115,100 4,500

110.964 4,594

4.136 (94)

116.624 3.828

253.000 253,000 253.000 246.000 Total general govemment

Capital Ouday

Total expenditures

Excess of revenues over expenditures

Oth^ financmg uses Transfers &om (to) -

General Fund Sewer Fund Electnc Light and Waterworks Fund

Total other financmg uses

Excess (deficiency) of revenues and other sources over expenditures and other uses

Fund balance, beginning

Fund balance, endmg

365,500

_

365,500

8,362.500

(9.060.000) (560,000)

(1,325,000) (10,945.000)

11,310,500

4,199,189

$ 15,509.689

372,600

161,844

534,444

9.300,556

(9,724,200) (560,000)

(1,325.000) (11,609.200)

(2,308,644)

4.199,189

$ 1,890,545

368,558

299,568

668,126

9.010,248

(9.724,172) (560,000)

(1,325,000) (11,609,172)

(2,598.924)

4,199.189

$ 1,600,265

4,042

(137,724)

(133,682)

(290,308)

28 --

28

(290,280)

-

$(290,280)

366.452

.

366,452

8.110.696

(7,702,301) (735,311)

(1,609,667) (10,047,279)

(1.936.583)

6.135.772

$ 4,199,189

59

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS Special revenue funds are used to accoimt for specific revenues that are legally restricted to expenditures for particular purposes

Louisiana Community Development Block Grant (LCDBG) Fund Accounts for monies reimbursed from the Louisiana Community Development Block Grant for street improvements

Police Department Detective Fund Accounts for monies transferred from the General Fund to be used for detective investigation

Emergency Shelter Grant Fund Accounts for funds received from the State of Louisiana Department of Social Services for the purpose of rehabilitation and operations of the New Life Center and Light House Mission

Police Witness Fee Fund Accoimts for monies transferred from the General Fund to be used for witness fees

Police Seized Fund Accounts for monies received when drug assets are made and money is seized

Industrial Park Fund Accounts for funds received from the sale of land, lease income, or rental income in the City's Industrial Park. The funds received are not restricted

Myrtle Grove Cemetery Fund Accounts for funds received from the sale of lots in Myrtle Grove Cemetery These funds are used for the operating and capital expenditures for the Cemetery

DEBT SERVICE FUND

Local Assessment Fund

Accumulates monies for payment of Paving Certificates, Senes 1996 of $71,049 The Paving Certificates were retired by assessments on the real properties along those applicable portions of streets within corporate limits.

CAPITAL PROJECTS FUNDS

Capital Projects Fund To account for excess momes from CLECO settlement and other sources designated to be used for operating transfers to other funds as designated by management

1995 Capital Projects Fund To account for the expenditures associated with the acquisition of equipment and improving of public buildings financed by Certificates of Indebtedness, Series 1995

60

CITY OF OPELOUSAS. LOUISIANA Nonmajor Govemmental Fimds

Combining Balance Sheet August 31.2011

With Comparative Totals as of August 31, 2010

ASSETS

Cash and cash equivalents Receivables -

Accounts Special assessments Accrued interest

TOTAL ASSETS

Special Revenue

5.142

Debt Service

Capital Projects

Totals 2011

143.179 321,279

5,142 143,179 321,279

2010

$56,721 $ 30,844 $17,072 $104,637 $ 86,247

5,137 220,590 481,918

$61.863 $495,302 $ 17,072 $574,237 $793,892

LIABILITIES AND FUND BALANCES

Liabilities Accoimts payable and accrued expenses Due to other funds

Total liabilities

Fund balances Restncted - debt service Assigned - public safety Assigned - health and welfare Assigned - capital expenditures

Total fund balances

TOTAL LIABILITIES AND FUND BALANCES

$ 6,533 $ 22,544

$29,077

32,786 495,302

$ - $495,302 $ 13.864 18,922

17,072

17,072

$ 6,533 $ 4,290

22,544 36

$ 29,077 $ 4.326

$495,302 $727,070 13,864 26,125 18,922 19.594 17,072 16,777

545,160 789,566

$61,863 $495,302 $ 17,072 $574,237 $793,892

61

CITY OF OPELOUSAS. LOUISIANA Nonmajor Govemmental Funds

Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended August 31, 2011

With Comparative Totals for August 31, 2010

Revenues Intergovernmental Public Safety Interest Other

Total revenues

Expenditures

Current -General govemment

Executive department Public safety Health and welfare Assessment charge-off Capital outlay

Total expenditures

Special Revenue

$ 30.355 23,548

772 -

54,675

-30,027 31.398

-6.183

67,608

Debt Service

$ -462

-462

---

232,230 -

232,230

Capital Projects

$ --295

-

295

------

Totals 2011

$ 30,355 $ 23,548

1,529 -

55,432

-30.027 31,398

232,230 6,183

299,838

2010

20,176 33,642 2,397 3,041

59,256

6,800 29,191 20,176

241,985 -

298.152


Other financing uses Operating transfers uses

Excess (deficiency) of revenues and other sources over expenditures and other uses

Fund balance, beginmng

Fund balance, ending

(12,933) (231,768) 295 (244.406) (238,896)

(2,513)

(12.933) (231,768) 295 (244.406) (241.409)

45.719 727.070 16,777 789,566 1.030,975

$ 32,786 $ 495,302 $17,072 $ 545,160 $ 789,566

62

NONMAJOR ENTERPRISE FUND

Rural Economic and Community Development Grant Fund

Accounts for grant funds to be used to establish a revolving loan fund to facilitate the development of small and emerging private business, industry, and related employment for improving the economy m mral communities

63

CITY OF OPELOUSAS. LOUISIANA Nonmajor Enterpnse Fund


Statement of Net Assets August 31, 2011

With Comparative Actual Amoimts for August 31,2010

ASSETS

Cash and cash equivalents Receivables

Notes receivable, net Interest receivable

Total assets

LIABILITIES

Liabilities Due to other funds

2011 2010

$141,538

117,503

12,915

271.956

$ 92,709

157,879

11,509

262,097

NET ASSETS Restncted for grant provisions $271,951 $ 262,092

64

CITY OF OPELOUSAS, LOUISIANA Noimiajor Enterprise Fund


Statement of Revenues, Expenses, and Changes in Fund Net Assets For the Year Ended August 31, 2011


Operating revenues Charges for services

Miscellaneous Interest

Total operating revenues

Operating expenses Supplies Legal fees


Operating income

Net assets, begirming

Net assets, ending

2011 2010

$ 1.506 9.173

10,679

70 750 820

9,859

262,092

$271,951

$ -8,842 8,842

63 -

63

8,779

253,313

$ 262,092

65

CITY OF OPELOUSAS, LOUISIANA Nonmajor Enterprise Fund


Statement of Cash Flows For the Year Ended August 31, 2011


2011 2010 Cash flows from operating activities

Cash received from customers $ 49,649 $43,428 Cash payments for supplies (70) Cash payments for legal fees (750) (62)

Net cash provided by operating activities 48,829 43,366

Net increase in cash 48,829 43,366

Cash and cash equivalents, begirmmg of period 92,709 49,343

Cash and cash equivalents, end of penod $141.538 $ 92,709

Reconciliation of operating income to net cash provided by operating activities:

Operating income $ 9.859 $ 8.779 Adjustments to reconcile operating income to net cash

provided by operating activities Decrease in accounts receivable 38,970 34,586 Increase in accounts payable - 1_

Net cash provided by operating activities $ 48,829 $ 43,366

66

INTERNAL SERVICE FUNDS

Internal Service Fund A Accounts for the billing to various funds and the payment for automobile claims This fund also accounts for the momes held in a claims account for self-msurance purposes in connection with the above coverage

Internal Servjce Fund G Accounts for the billing to various funds and the payment of general liability claims This fund also accounts for the monies held in a claims account for self-insurance purposes in connection with the above coverage

Workmen's Compensation Fund Accounts for the billing to the vanous funds and the payment of insurance premiums for workmen's compensation coverage This fund also accounts for the monies held in a claims account for the self-insured portion of each claim for the above coverage

Health Self-Insurance Fund Accounts for the collection of health insurance premiums and the payment of individual claims

67


Combming Statement of Net Assets Intemal Service Funds

August 31.2011 With Comparative Actual Amounts for August 31. 2010

Intemal Intemal Service Service

Workmen's Health Self CompensaUon Insurance Totals

ASSETS

CURRENT ASSETS Cash and cash equivalents Accounts receivable Due fi'om other funds

Total current assets

NONCURRENT ASSEI'S Capital assets

Equipment, net

Total assets

1

$

$_

Fund A

141 -

79.445 79.586

-

79,586

FundG

$

—

L

5.787 --

5,787

4,853

10,640

Fund

$731,588 102.242

-833,830

-

$833,830

Fund

$ 285,296 158.021

-443,317

-

$443,317

2011

$1,022,812 260,263 79,445

1,362.520

4,853

$1,367,373

2010

$1,164,538 456,128

555 1,621,221

6,092

$1,627,313

LIABILITIES AND NET ASSETS

Cash overdraft Accounts payable Clarnis payable Due to other fiinds

Total liabilities

NET ASSETS Restncted for msiu-ance claims

Total net assets (deficit)

Total liabilities and net assets

$ ---

245.000

245.000

(165,414) (165.414)

$ 79,586

S -14,864

286,741 144.445

446,050

(435,410) (435,410)

$ 10,640

$ -13,488

--

13.488

820,342 820,342

$ 833,830

$ -18.087

470,067 495,000

983.154

(539,837) (539,837)

$ 443.317

$ 46,439

756,808 884,445

1,687,692

(320,319) (320,319)

$1,367,373

$ 198,184 81,127

587.516 695.555

1.562,382

64,931 64,931

$1,627,313

68


Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Intemal Service Funds

For the Year Ended August 31, 2011 With Comparative Actual Amounts for August 31, 2010

Internal btemal Workmen's Health Self Service Service Compensation Insurance Totals

Operatmg revenues premiums

Operating expenses Claims Depreciation Insurance Administrative and other

Total operaUng expenses

Operating loss

Nonoperatmg revenues (expenses) Invesliiient income

Loss before operaUng transfers

Other financing sources Operating transfers in

Change in net assets

Net assets (deficit), beginning

Net assets (deficit), endmg

Fund A

$ 350,213

386.455 3.000

389.455

(39.242)

1.213

(38,029)

(38.029)

(127,385)

$(165,414)

FundG

$ 152.973

141,594 1,239

30,506 6,000

179,339

(26.366)

365

(26.001)

(26.001)

(409.409)

$(435,410)

Fund

$ 242.704

564,894

10.000

574.894

(332,190)

17.852

(314.338)

(314,338)

1,134.680

$ 820,342

Fund

$1,629,858

1,641.270

1,641.270

(11,412)

4,530

(6,882)

(6.882)

(532,955)

$ (539.837)

2011

$2,375,748

2.347.758 1,239

416.961 19.000

2.784.958

(409.210)

23,960

(385.250)

(385,250)

64,931

$ (320.319)

2010

$1,941,328

2,021.755 1,304

424.453 19.000

2,466,512

(525,184)

43,662

(481,522)

395,000

(86.522)

151.453

$ 64.931

69


Combining Statement of Cash Flows Interna! Service Funds

For the Year Ended August 31, 2011 With Comparative Actual Amounts for August 31,2010

Cash flows from operating activities Premiums received General and administrative expenses paid Claims paid Insurance paid

Net cash provided (used) by operating activities

Cash flows fi-om noncapital financing activities Decrease in cash overdraft Cash received from (paid to) other funds

Net cash provided (used) by noncapital

and related financmg activities

Cash flows from investmg activities Interest earnings

Net increase (decrease) in c^h and cash equivalents

Cash and cash equivalents, beginnmg of the year

Cash and cash equivalents, end of the year

Intemal Service Fund A

$ 350,213 (3.000)

-(386.455)

(39.242)

-(35,000)

(35,000)

1.213

(73.029)

73,170

$ 141

hitemal Service FundG

$ 152.973 (6,000)

(260.399) (30,506)

(143,932)

-145,000

145,000

365

1,433

4,354

$ 5.787

Workmen's Compensation

Fund

$ 157.659 (10,000)

(564,894)

-

(417,235)

--

_

17,852

(399.383)

1,130,971

$ 731,588

Health Self Insurance

Fund

$ 2,059,810

-(1.536.903)

-

522,907

(198,184) -

(198,184)

4.530

329,253

(43,957)

$ 285,296

Totals 2011

$ 2,720,655 (19.000)

(2.362.196) (416,961)

(77,502)

(198,184) 110.000

110.000

23,960

(141,726)

1,164,538

$ 1,022.812

2010

$ 1,775.210 (19,000)

(2,315,278) (424,453)

(983,521)

-793,184

793,184

43,662

(146,675)

1.311.213

$ 1,164,538

Reconciliation of operating loss to net cash provided (used) by operating activmes

Operatingloss $(39,242) $(26,366) $(332,190) $ (11,412) $ (409,210) $ (525,184) Adjustments to reconcile operating

loss to net cash provided (used) by operatmg activmes

Depreciation - 1,239 - - 1.239 1.304 Changes in assets and liabilities

Accounts receivable Accounts payable Claims payable -

Net cash provided (used)

by operatmg activities $ (39,242) $(143,932) $ (417,235) $ 522,907 $ (77,502) $ (983.521)

1,000 13,454

(133.259)

(98.533) 13,488

-

293,398 (61 630) 302,551

195,865 (34,688) 169,292

(166,118) 68.374

(361,897)

70

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COMPLIANCE, INTERNAL CONTROL

AND

OTHER GRANT INFORMATION

72

C Burton Kolder CPA Russell f Champagne CPA ViaorR Slaven CPA* P Troy Courville CPA* Gerald A Thibodeaux Jr CPA* Robert S Carter CPA* Arthur R Mixon. CPA*

Penny Angelle Scruggins CPA CIvisline L Cousin CPA Wanda F Arcement CPA CVA Allen J LaBry CPA Albert R Leaer CPA.PFS CSA' Marshall W Guidry CPA Stephen R Moore Jr CPA,PFS CFP* CnFC^ James R Roy CPA Robert J Metz CPA Alan M Taylor CPA KsUyM Doucet, CPA Cheryl L Bartley CPA Mandy B Self CPA Paul L Dalcambro. Jr CPA Kristin B Dauzat, CPA Matthew E MargagHo CPA Jane R Hebert CPA Bryan K Joubert CPA Stephen J Anderson CPA

Retired Conrad O Chapman CPA* 2006 Tynes E Mbcon Jr CPA 2011

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

A Piofeiiional Accounbng Corporaliofi

OFFICES

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

113EastBndgeSt Breaux Bridge LA 70517 Phone (337) 332-4020 Fax (337) 332 2867

1234 David Dr Ste 203 Morgan City LA 70360 Phone (985) 364-2020 Fax (965) 384-3020

408 West Cotton Street Ville Platte LA 70568 Phone (337) 383-2792 Fax (337) 363-3049

332 Wesl Sixth Avenue Oberiin LA 70655 Phone (337) 83^737 Fax (337) 839-4568

450 East Mam Street Newlbena LA70560

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

200 South Main Street Abbeville LA 70510

Phone (337) 893-7944 Fax (337) 893-7946

1013 Main Street Franklin LA 70538

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

133EastWBddilSt MarksvilleLA7l351

Phone (316) 253 9252 Fax (318) 253-6681

621 Main Street Pineville LA 71360

Phone (316) 442 4421 Fax (318) 442-9833

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

WEBSITE WWW KCSRCPAS COM



We have audited the financial statements of the govemmental activities, the business-type activities, each major fund, and the aggregate remaimng fimd information of the City of Opelousas, Louisiana, as of and for the year ended August 31, 2011, which collectively compnse the City of Opelousas, Louisiana's basic financial statements and have issued our report thereon dated February 28, 2012 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

Intemal Control Over Financial Reporting

In planning and performing our audit, we considered the City of Opelousas, Louisiana's intemal control over financial reporting as a basis for designing our auditing procedures 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 City of Opelousas, Louisiana's intemal control over financial repomng Accordingly, we do not express an opinion on the effectiveness of City of Opelousas, Louisiana's intemal control over financial reporting

Our consideration of intemal control over financial reporting was for the limited purpose descnbed in the preceding paragraph and was not designed to identify all deficiencies in intemal control over financial reporting that might be significant deficiencies, or matenal weaknesses, and therefore, there can be no assurance that all deficiencies, significant deficiencies, or matenal weaknesses have been identified However, as descnbed in the accompanying summary schedule of current and prior year audit findings and corrective action plan, we identified certain deficiencies in intemal control over financial reportmg that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies.

Member of AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 73


CERTIFIED PUBLIC ACCOUNTAf^S

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 We consider the deficiencies descnbed in the accompanying schedule of findings and questioned costs to be material weaknesses as Items #11-4, #11-5, and #11-9

A significant deficiency is a deficiency, or a combination of deficiencies, m intemal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance We consider the deficiencies described in the accompanying summary schedule of current and prior year audit findings and corrective action plan to be significant deficiencies as Items # 11-1, #11-2, #11-3, #11-6, #11-7, #11-8, #11-10, #11-11, #11-12, #11-13, and #11-14

Compliance and Other Matters

As part of obtainmg reasonable assurance about whether the City of Opelousas, Louisiana's financial statements are free of material misstatement we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statements amounts However, providing an opimon 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 instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying summary schedule of current and prior year audit findings and corrective action plan as Items #11-15 and #11-16

We noted a certain other matters that we have reported to management of the City of Opelousas, Louisiana m a separate letter dated February 28, 2012

The City of Opelousas, Louisiana's responses to the findmgs identified m our audit are described in the accompanying summary schedule of current and pnor year audit findings and corrective action plan We did not audit the City of Opelousas, Louisiana's responses and, accordingly, we express no opimon on it

This report is intended solely for the information of the City's management and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties Although the mtended use of this report may be limited, under Louisiana Revised Statute 24 513, this report is distnbuted by the Legislative Auditor as a public document

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


74

C Burton Kolder CPA* Russell F Champagne CPA* Victor R Slaven CPA* P Troy Courville CPA* Gerald A. Thibodeaux Jr CPA* Roberts Carter CPA' Arthur R Mixon CPA'

Penny Angelle Scruggins CPA Chnsline L Cousin, CPA Wanda F Arcement CPA.CVA Allen J LaBry CPA /ybert 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 Taylor CPA Kelly M DouceL CPA Cheryl L Bartley CPA Mandy B Self CPA Paul L Delcambre Jr CPA Knstin B Dauzat CPA Matthew E MargagUo CPA Jane R Hebert, CPA Bryan K Joubert CPA Stephen J Anderson CPA


OFFICES

163 South Beadle Rd Lafayette LA 70508 Phone (337) 232-^141 Fax (337) 232 6660

450 East Mam Street New Iberia LA 70560

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

113 East Bndge SI 200 South Mam Street BreauxBndge LA70517 Abbeville, LA70510 Phone (337) 332-4020 Phone (337) 893-7944 Fax (337) 332-2867 Fax (337) 893-7946

Retired Conrad 0 Chapman. CPA* 2006 Tynes E Mixon, Jr CPA 2011

1234 David Dr Ste 203 Morgan City LA 70380 Phone (965) 3S4-2020 Fax (985) 384-3020

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

332 West Sixth Avenue Oberiin, LA 70655 Phone (337) 639-4737 Fax (337) 639-4568

1013 Main Street FranWin LA 70538

Phone (337) 828-0272 Fax (337) 628-0290

133EastWaddilSI Mart(svilte LA 71351

Phone (316) 253-9252 Fax (318) 253-6661

621 Main Street Pineville LA 71360

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

' A Profemonnl Accounting Corporation INDEPENDENT AUDITOR^S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND

MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN

ACCORDANCE WITH OMB CIRCULAR A-133

WEB SITE WVWV KCSRCPAS COM



Cpmpliance

We have audited the City of Opelousas, Louisiana's compliance with the types of compliance requirements described in the OMB Circular A-J33 Compliance Supplement that could have a direct and matenal effect on each of the City of Opelousas, Louisiana*s major federal programs for the year ended August 31, 2011 The City of Opelousas, Louisiana's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the City of Opelousas, Louisiana's management Our responsibility is to express an opinion on the City of Opelousas, Louisiana's compliance based on our audit

We conducted our audit of compliance in accordance with auditing standards generally accepted in the Umted States of America, the standards apphcable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements refened to above that could have a direct and material effect on a major federal program occurred An audit includes examimng, on a test basis, evidence about the City of Opelousas, Louisiana's compliance with those requirements and performing such other procedures as we considered necessary m the circumstances. We believe that our audit provides a reasonable basis for our opinion Our audit does not provide a legal determination on the City of Opelousas, Louisiana's compliance with those requu-ements

Member of AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 75


CERTIFIED PUBUC ACCOUNTANTS

In our opimon, the City of Opelousas, Louisiana complied, in all matenal respects, with the comphance requirements referred to above that could have a direct and matenal effect on each of its major federal programs for the year ended August 31,2011

Intemal Control Over Compliance

Management of the City of Opelousas, Louisiana is responsible for establishing and maintaining effective intemal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs In planmng and performing our audit, we considered the City of Opelousas, Louisiana's intemal control over compliance with the requirements that could have a direct and matenal effect on a major federal program to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on intemal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of intemal control over compliance Accordingly, we do not express an opinion on the effectiveness of the City of Opelousas, Louisiana's intemal control over compliance

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis A material weaknesses in internal control over compliance is a deficiency, or combination of deficiencies, in intemal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis

Our consideration of intemal control over compliance was for the limited purpose descnbed in the first paragraph of this section and was not designed to identify all deficiencies in intemal control over compliance that might be deficiencies, significant deficiencies, or matenal weaknesses We did not identify any deficiencies in intemal control over compliance that we consider to be matenal weaknesses, as defined above

This report is intended for the information of the City of Opelousas, Louisiana's management, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties Although the intended use of this report may be limited, under Louisiana Revised Statute 24 513, this report is distnbuted by the Legislative Auditor as a pubhc document



76


Schedule of Expenditures of Federal Awards Year Ended August 31, 2011

Federal Grantor / Pass-Through Grantor / Program Name

Federal CFDA Disbursements/

Number Expenditures

U.S Department of Housing and Urban Development Passed-through State of Louisiana Department of Social Services

Emergency Shelter Grants Program

Economic Development Initiative - Special Project, Neighborhood Initiative and Miscellaneous Grant *

U S Environmental Protection Agency Passed-through State of Louisiana Department of

Environmental Quality ARRA - Capitalization Grants for Clean Water *

II S Department of Education Passed-through State of Louisiana Department Education Safe and Drug Free Schools and Communities

State Grants

l) S Department of Justice Passed-through Louisiana Commission on Law Enforcement

and Administration on Criminal Justice Edward Byme Memorial Formula Grant Program Edward Byme Memonal Justice Assistance Grant Program

US Department of Intenor Histonc Preservation Fund Grants - In-Aid

US Department of Homeland Securitv Assistance to Firefighters Grant Hazard Mitigation Grant

U j Department of Transportation Passed-through Louisiana Highway Safety Commission

State and Commumty Highway Safety

14 231

14 251

66 458

84 186

16 579 16 738

15 904

97 044 97 039

20 600

$ 30,355

231,882

143,849

62,021

4,000 36,059

3,982

45,375 35,000

17.281

TOTAL FEDERAL EXPENDITURES $ 609,804

Indicates Major Program

77


Notes to Schedule of Expenditures of Federal Awards Year Ended August 31, 2011

(1) General

The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Opelousas, Louisiana (the "City") The City's reporting entity is defined in Note 1 to the pnmary govemment financial statements for the year ended August 31, 2011 All federal financial assistance received directly from federal agencies is included on the schedule as well as federal financial assistance passed through other govemment agencies The U S Environmental Protection Agency Passed through State of Louisiana Department of Environmental Quality - Capitalization Grants for Clean Water program and the U.S. Department of Housing and Urban Development Economic Development Initiative Special Projects program were considered to be major federal programs

(2) Basis of Accounting

The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is descnbed in Note 1 to the City's pnmary govemment financial statements for the year ended August 31,2011

(3) Subrecipients

The federal expenditures of the Emergency Shelter Grants Program presented in the schedule, were federal awards provided to subrecipients by the City as follows.

Subrecipient Title Opelousas Housing Corporation

d/b/a New Life Center Lighthouse Mission

CFDA#

14 231 14 231

Amount Provided

$13,772 16,583

$30.355

78


Notes to Schedule of Expenditures of Federal Awards (Continued) Year Ended August 31,2011

(3) Relationship to Pnmary Govemment Financial Statements

Federal financial assistance revenues/expenditures are reported in the City's primary govemment financial statements as follows

From federal sources Govemment Fund Types -

Special Revenue Funds $ 30,355 General Fund 435,600

Propnetary Fund Type -Electric Light and Waterworks Fund 143.849

Total federal expenditures reported in the Schedule of Expenditures of Federal Awards S609.804

(4) Relationship to Federal Financial Reports

Amounts reported m the Schedule of Expenditures of Federal Awards agree with the amounts reported in the related financial reports

79


Schedule of Findings and Questioned Costs Year Ended August 31, 2011

Part I Summary of Auditor's Results.

1 The auditor's report expresses an unqualified opinion on the financial statements of the City of Opelousas for the year ended August 31,2011

2 There were fourteen significant deficiencies in mtemal control disclosed by the audit of the financial statements

3 There were two instances of noncompliance disclosed by the audit of the financial statements

4 There were no sigmficant deficiencies in intemal control over major programs disclosed by the audit of the financial statements

5 An unqualified opimon was issued on compliance for the major programs

6 There were no audit findings that are required to be reported in accordance with Section 510(a) of Circular A-133 reported in this schedule

7 The major programs were

U S. Environmental Protection Agency Passed through State of Louisiana Department of Environmental Quality - Capitalization Grants for Clean Water CFDA No 66 458.

U S Department of Housing and Urban Development - Direct Programs - Economic Development Initiative - Special Project, Neighborhood Initiative and Miscellaneous Grants CFDA No 14 251

8 The dollar threshold used to distinguish between Type A and Type B programs, as described in Section 520(b) of Circular A-133 was $300,000

9 The auditee did not qualify as a low-risk auditee under Section 530 of Circular A-133

Part II Findings that are required to be reported in accordance with generally accepted Govemmental Auditing Standards

See Findings #11-01 through #11-20 on the Summary Schedule of Cunent and Pnor Year Audit Findings and Conective Action Plan

80


Schedule of Findings and Questioned Costs (Continued) Year Ended August 31,2011

Part III Findings and questioned costs for Federal awards which include audit findings as defined in Section 510ra1 of Circular A-133

There were no audit findings that are required to be reported in accordance with Section 510(a) of Circular A-133

81


Schedule of Prior Audit Findings and Questioned Costs Year Ended August 31, 2011

Part I Findings that are required to be reported in accordance with generally accepted Govemmental Auditing Standards

See Summary Schedule of Current and Pnor Year Audit Findings and Corrective Action Plan

Part 11 Findmgs and questioned costs for Federal awards which include audit findings as defined m Section 510(a) of Circular A-133

See Items #10-11 and 10-12 in the Summary Schedule of Cunent and Prior Year Audit Findmgs and Corrective Action Plan

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INDEPENDENT AUDITORS' REPORT ON APPLYING AGREED-UPON PROCEDURES

Fiscal Year Ended August 31,2011

0 Burton Koider CPA" Russell F Champagne CPA" Victor R Slaven CPA* P Troy Courville CPA' Gerald A Thibodeaux Jr CPA' Robert S Carter CPA* ArttiurR Mixon, CPA'


OFFICES

Tynes E Mixon, Jr CPA Allen J LaBry CPA Albert R Leger, CPA PFS CSA-Penny Angelle Scri^gins CPA Christine L Cousin, CPA MaryT Thibodeaux CPA Marshall W Guidry CPA Alan M Taylor CPA James R Roy CPA RtrtjertJ Metz, CPA Kelly M Doucet CPA Cheryl L Battley CPA MantiyB Self CPA Paul L DelCEtfnbre. Jr CPA Wanda F Arcement CPA CVA Knstin B Dauzat CPA Richard R Anderson Sr, CPA Carolyn C Anderson, CPA Matthew E Margaglio CPA Jane R, Hebert, CPA

Retired Conrad 0 Chapman CPA'2D06 Harry J Clostio. CPA 2007

INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES


113 East Bridge St BreauxBndge LA 70517 Phone (337) 332-4020 Fax (337) 332-2867

1234 David Dr Sto203 Morgan City LA 70380 Phona (985) 384 2020 Fax {985J 384-3020

408 West Cotton Street Ville Platte, U 705B6 Phone (337) 363-2792 Fax (337) 363 3049

332 Wesl Sixth Avenue Oberiin LA 70655 Phone (337) 639-4737 Fax (337) 639-4568

450 Easi Mam Street Newlbena LA70560

Phone (337) 367-9204 Fax (337) 367-9206

200 South Mam Street Wjbeville LA 70510

Phone (337) 693-7944 Fax (337) 893-7946

1013 Main Street Franklin. LA 70538

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

133EastWaddilSt Mail(svilleLA71351

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

621 Main Street Pineville U 71360

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

WEBSITE WWW KCSRCPAS COM

' A Professional Accounting Corporation

Mr Donald Cravins, Sr, Mayor and Members of the City Council

Opelousas, Louisiana

We have performed the procedures mcluded in the Louisiana Government Audit Guide and enumerated below, which were agreed to by the management of the City of Opelousas, Louisiana and the Legislative Auditor, State of Louisiana, solely to assist the users m evaluating management's assertions about the City of Opelousas, Louisiana's compliance with certain laws and regulations during the period ended August 31, 2011 included m the accompanying Louisiana Attestation Questionnaire Management of the City of Opelousas, Louisiana is responsible for its financial records and compliance with applicable laws and regulations This agreed-upon procedures engagement was performed in accordance with attestation standards established by the Amencan Institute of Certified Public Accountants and applicable standards of Government Auditing Standards The sufficiency of these procedures is solely the responsibility of the specific users of this report Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose

/. Financial Management

1 Determine if management (chief executive and board members) was presented with timely and accurate monthly financial statements, including budget-to-actual comparisons on funds (General Fund, Special Revenue Fund, Utility Fund, etc ) of the entity, durmg the year under examination

Each month the board is provided monthly financial statements with budget to actual comparisons for the General Fund, the Electric Light and Waterworks Fund, and the Sewer Fund

If management was deficit spending during the period under exammation, determine if there is a formal/wntten plan to eliminate the deficit spending and whether management is monitoring the plan

Member of AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS


CERTIFIED PUBLIC ACCOUNTANTS

Based upon discussions with the City Clerk, the City has no formal/wntten plan to eliminate deficit spending as of August 31, 2011 The current administration has taken many measures to reduce spending during the fiscal year They feel currently that they have eliminated deficit spending Administration is continuing to look at all facets of operations for areas of improvement and/or reduce spending or take cost saving measurements The general fund budget adopted on February 14, 2012 for the fiscal year ended August 31, 2012 reflects a current surplus of $552,212

3 Determine if there are written policies and procedures for the following financial/business functions of the entity*

a Budgeting, includmg preparing, adopting, monitoring, and amending the budget

The City does not have written policies and procedures for budgeting Based upon discussions with the City Clerk, the City follows the Louisiana Budget Act

b Purchasing, mcludmg (1) how purchases are initiated, (2) how vendors are added to the vendor list, (3) the preparation and approval process of purchase requisitions and purchase orders, (4) checks and balances to ensure compliance with the public bid law, and (5) documentation required to be maintained for all bids and price quotes

The City has a formal written purchasing policy in place This policy was updated and amended during the fiscal year ended August 31, 2011 and appears to include all elements listed above

c Disbursements, includmg processing, reviewing, and approving

The City's purchasing policy addresses how invoices are reviewed and approved pnor to being submitted to the accounts payable department for payment The policy does not address policies and procedures subsequent to the initiation of the transaction

d Receipts, including receiving, recording, and prepanng deposits

Based upon inquires of the City Clerk, the City currently has no written policies and procedures for handling receipts as of August 31, 2011

//. Credit Cards

1 Obtain from management a listing of all active credit cards (and bank debit cards if applicable) for the penod under examination, mcluding the card numbers and the names of the persons who maintained possession of the cards

We obtained a listing of all active credit cards for the penod under examination The City utilizes three types of credit cards, a general credit card (VISA), a store credit card (Wal-Mart), and fuel credit cards (FleetRite Net)

The Wal-Mart credit cards are stored in a lock box maintamed by the Mayor's secretary Authonzed individuals must sign out the card from the Mayor's secretary

The Visa card is stored in the City Clerk's office Authonzed users must sign out this card from the City Clerk This card was obtained at the end of the fiscal year ended August 31, 2011 There were no transactions on this card for the period under exammation

The list of FleetRite Net cards is maintained by the Chief Administrative Officer A card is issued for each city vehicle and is kept in the respective vehicle's glove compartment Each authonzed user is issued a pin number which must be entered in order to use the card

2 Obtain and review the entity's written policies and procedures for credit cards (and debit cards if apphcable) and determine if the following is addressed.

• How cards are to be controlled • Allowable busmess uses • Documentation requirements • Required approvers • Monitoring card usage

The City's credit card policy addresses how credit cards are to be controlled The policy also addresses allowable business uses for the fuel credit cards only The City's policy also requires that a receipt be turned in for all credit card purchases The policy does not address the allowable business uses for the Wal-Mart and Visa cards, any additional documentation requirements to be included with the receipt, required approvers and the monitoring of card usage

3 Obtain the monthly statements for all credit cards (general, stores, and gasoline) used dunng the period under examination and select for detailed review, the two largest (dollar amount) statements for each card (Note For a debit card, select the two monthly bank statements with the largest dollar amount of debit charges)

The monthly statements for ail credit cards used during the period under examination were obtamed The two largest (dollar amount) statements for each card were selected for detailed testing

A Obtain the entity's supportmg documentation for the purchases/charges shown on the selected monthly statements.

• Determine if each purchase is supported by

o An original itemized receipt (i e , identifies precisely what was purchased)

Of the 60 Wal-Mart credit card transactions tested, two purchases were not supported by an ongmal itemized receipt. Based upon a review of the sign out log, the card was properly signed out on the day of the transactions by an authonzed user The City does not require departments to turn in receipts for fuel purchases using the FleetRite Net fuel credit cards

o Documentation of the business/public purpose (Note For meal charges, there should also be documentation of the individuals participating)

Based upon review of the 60 Wal-Mart credit card transactions test, it appears that a specific business/public purpose is only documented when purchases are made for a specific function or event In other instances, e g, purchases of supplies, only the department code is included on the receipt

o Other documentation as may be required by policy (e g , purchase order, authorization, etc)

The City's purchasing policy requires that a purchase order be obtained for all purchases greater than $300 Based upon discussions with the City Clerk, the Accounts Payable Clerk and the Mayor's secretary, the purchase order number should be included on the receipt turned in to support the purchase However, there were no purchase order numbers mcluded on the receipts for purchases greater than $300 that were examined through our tests

• Determine if each purchase is

o In accordance with thresholds or guidelines established in the policies and procedures

The City's purchasing pohcy requires a purchase order for all purchases of $300 or greater Based upon review of the activity for the two months selected, it appears that there have been occasions m which the card is used multiple times on the same day by the same individual for the same type of purchase In these instances each transaction is less than $300 Discussions with City personnel revealed this is done because the purchasing policy lunits purchases without a purchase order to under $300 They further explained that a transaction is defined by the action of the cashier at the store As a result, by using this definition, if an individual purchases items totaling greater than $300 but had the purchases run up separately by the cashier, then the individual is not in violation of the purchasing policy Based upon discussions with the Chief Administrative Officer, the City's management does not agree with this interpretation

Based upon review of credit card transactions for the two months selected, purchase orders were not obtained for transactions greater than $300

Based upon review of the credit card sign out log, it was noted that the Wal-Mart credit cards are regularly not retumed withm the required time frame prescribed in the City's credit card policy

o For an appropriate and necessary business purpose relative to the entity

There were no exceptions noted as a result of procedures performed

• Determine if any purchases were made for personal purposes If there are purchases made for personal purposes, determine the date(s) of reimbursement


• Determine if any purchases effectively circumvented the entity's normal procurement/purchasing process and/or the Louisiana Public Bid Law (i e , large or recurring purchases requiring the solicitation of bids or quotes)

The City's purchasing pohcy requires a purchase order for all purchases of $300 or greater Based upon review of the activity for the two months selected, it appears that there have been occasions in which the card is used multiple times on the same day by the same individual for the same type of purchase. In these instances each transaction is less than $300 Discussions with City personnel revealed this is done because the purchasing policy limits purchases without a purchase order to under $300 They further explained that a transaction is defined by the action of the cashier at the store As a result, by using this definition, if an individual purchases items totaling greater than $300 but had the purchases run up separately by the cashier, then the individual is not in violation of the purchasing policy Based upon discussions with the Chief Administrative Officer, the City's management does not agree with this interpretation

Based upon review of credit card transactions for the two months selected, purchase orders were not obtained for transactions greater than $300

There were no instances of noncompliance with the Louisiana Public Bid Law identified

B Determine if there was any duplication of expenses by comparing all travel and related purchases to the appropriate person's expense reimbursement report(s)


C Determme if each monthly credit card statement (including supportmg documentation) was reviewed and approved, in writing, by someone other than the person making the purchases [Note- Requiring such approval may constrain the legal authority of certain public officials (e g, mayor of a Lawrason Act municipality )

The Wal-Mart credit card statements are reviewed by the Mayor's secretary Through this process she matches submitted receipts to the statement The Visa statement is reviewed by the City Clerk The FleetRite Net fuel purchases statement is reviewed by the Chief Administrative Officer These individuals code the various invoices/purchases but do not actually initial their review Based upon discussions with the City Clerk, the coding of the expenditures alerts the accounts payable clerk that the invoice has been reviewed Also each disbursement must have three signatures The invoices are attached to the checks when presented for signature. According to the City Clerk, this process allows for further review

D Determine if finance charges and/or late fees were assessed on the monthly statements

Based upon review of the credit card statements, it appears that payments are made consistently late The City is also consistently paying finance charges and late fees.

i n . Travel and Expense Reimbursement

1 Obtain and review the entity's written policies and procedures for travel and expense reimbursement and determine if the following is addressed

a Allowable expenses b Dollar thresholds by category of expense c Documentation requirements d Required approvers

There were no exceptions noted as a resuh of procedures performed

2 Obtain a listing of all travel and related expense reimbursements during the period under examination and select for review, the one person who was reimbursed the most money

A. Obtain all of the expense reimbursement reports of the selected person, including the supporting documentation, and select the three largest (dollar) expense reports to review in detail (Note If there are only three or less expense reports, review all (100%) of them )

• Determine if each expenditure is

o Reimbursed in accordance with written policy (e.g , rates established for meals, mileage, lodgmg, etc


o In accordance with thresholds or guidelines established m the policies and procedures


o For an appropriate and necessary business purpose relative to the travel


• Determine if each expenditure is supported by

o An original itemized receipt (i e , identifies precisely what was purchased) [Note An expense that is reimbursed based on an estabhshed per diem amount (e g , meals) generally does not require a receipt ]


o Documentation of the business/public purpose (Note For meal charges, there should also be documentation of the individuals participating)


o Other documentation as may be required by policy (e g, authorization for travel, conference brochure, certificate of attendance, etc )


• Determine if any of the expenditures were for personal purposes (e g , extended hotel stays before or after training class, meals for spouses, entertainment, etc)


• Determine if each expense report (including documentation) was reviewed and approved, m writing, by someone other than the person receiving reimbursement


B Determine if there was any duplication of expenses by companng the expense reports to charges/purchases made on credit card(s)


IK Contracts

1 Obtain and review the entity's written policies and procedures for contracts/contracting, mcludmg leasing, and determine if the following is addressed

• Types of services requiring v^ritten contracts • Standard terms and conditions • Legal review • Approval process • Monitoring process

The City currently does not have written policies and procedures for contracts/contracting, includmg leasing

2 Determme if the entity has centralized control and oversight of contracts to ensure that services/deliverables received and payments made comply with the terms and conditions of the contracts

The City does not have centralized control and oversight of contracts to ensure that services/deliverables received and payments made comply with the terms and conditions of the contracts

2 Obtain and review the accounting records (e g, general ledgers, accounts payable vendor history reports, invoices, etc ) for the period under exammation to identify individuals/businesses being paid for contracted services (e g, professional, technical, etc ) Select the five "vendors" that were paid the most money during the period and for each.

• Determine if there is a formal/written contract that supports the services arrangement and the total amount paid


• Determme the business legitimacy of the vendor if not known by the auditor (e g, look-up the vendor on the LA Secretary of State's website).


4. Obtain a listing of all active contracts and the expenditures made durmg the period under examination Select for detailed review, the largest (dollar amount) contract in each of the following categories that was entered into dunng the period.

(1) Services (2) Matenals and supplies (3) Public works


A Obtam the selected contracts and the related paid invoices and

• Determine if the contract is a related party transaction


• Determine if the transaction is subject to the Louisiana Pubhc Bid Law

o If yes, determine if the entity complied with all requirements (e g, solicited quotes or bids, advertisement, selected lowest bidder, etc )


o If no, determine if the entity provided an open and competitive atmosphere (a good business practice) for the transaction/work


• Determine if the contract was awarded under the request for proposals (RFP) method If done so, obtain all proposals and the evaluation/scoring documents to determine if the contract was awarded to the most responsible offeror whose proposal was the most advantageous taking into consideration price and other evaluation factors set forth in the request for proposals

This attribute was not applicable to the contract tested

Determine if the procurement was made "off state contract (as opposed to following the competitive bidding requirements of the Louisiana Public Bid Law) If done so, determine if the board formally adopted the use of the Louisiana Procurement Code (R S 39 1551-1755), the set of laws that govern most state agencies' purchases of certain services, materials and supplies, and major repairs

Vehicles were purchased under state contract in connection with one contract tested Although the City has a procurement policy in place, there is no documentation evidencing whether or not the board formally adopted the use of the Louisiana Procurement Code (R S 39 1551-1755)

Determme if the procurement related to homeland security and was made from federal General Services Administration (GSA) supply schedules If done so, determine if the entity (1) utilized a Louisiana licensed distributor, (2) used the competitive ordering procedures of the federal GSA, and (3) received prior approval from the director of the State Office of Homeland Security and Emergency Preparedness, or his designee


Determine if the entity "piggybacked" onto another agency's contract If done so, determine if there is documentation on file that clearly demonstrates the contract was a previously bid, viable contract and the price paid by the entity was the same as that contract's bid pnce


Determine if the contract was amended. If done so, determine whether the original contract contemplated or provided for such an amendment Furthermore, determine if the amendment IS outside the scope of the original contract, and if so, whether it should have been separately bid and contracted


Determine if the invoices received and payments made during the period complied with the terms and conditions of the contract


Determine if there is written evidence that the entity's legal advisor reviewed the contract and advised entering into the contract

There was no documentation available to determine if the City's legal advisor reviewed the contract and advised prior to entenng into the contract except in one instance

Determine if there is documentation of board approval, if required


V, Payroll and Personnel

1 Obtam and review the entity's written policies and procedures for payroll and personnel and determme if they address the processing of payroll, including reviewing and approving of time and attendance records, including leave and overtime worked

The City's civil service manual addresses these topics for all civil service employees The City also has written personnel policies and procedures for unclassified employees

2 Obtain a listing of employment contracts/agreements in force during the period under examination Select the largest (dollar amount) employment contract and determine if all payments issued during the penod under examination were done in strict accordance with the terms and conditions of the contract.

The City does not have any employment contracts at August 31, 2011

3 Select the attendance and leave records for one pay period and.

• Determine if all employees are documenting their daily attendance and leave (e g , vacation, sick, etc ) (Note Generally, an elected official is not eligible to eam leave and does not document his/her attendance and leave However, if the elected official is eaming leave according to policy and/or contract, the official should document his/her daily attendance and leave )


• Determme if supervisors are approving, in writing, the attendance and leave of all employees

All employee timesheets for the pay period ending June 25, 2011 were examined In two instances the employee did not sign their timesheet as required In three instances, a supervisor did not sign the timesheet as required

• Determine if the entity is maintaining accurate wntten leave records (e g , hours eamed, hours used, and balance available) on all eligible employees


4 Select the five highest paid employees and determine if changes made to their hourly pay rates/salaries during the period under examination were approved in writing and m accordance with policy


5 Select the five largest termination payments (e g , vacation, sick, compensatory time, etc ) made during the period under examination Determine if the payments were supported by documentation, made in strict accordance with policy and/or contract, and properly approved


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6 Determine if any employees were also being paid as contract labor during the period of the examination


We were not engaged to perform, and did not perform, an audit, the objective of which would be the expression of an opinion on management's assertions Accordingly, we do not express such an opinion Had we performed additional procedures, other matters might have come to our attention that would have been reported to you

This report is intended solely for the use of the management of the City of Opelousas, Louisiana and the Legislative Auditor, State of Louisiana, and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes Under Louisiana Revised Statute 24 513, this report is distributed by the Legislative Auditor as a public document


Lafayette, Louisiana Febmary 15,2012

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City of Opelousas Management's Conective Action Plan

June 30, 2011

/. Financial Management

Findmg - Question 3(a) The City does not have written policies and procedures for budgeting Based upon discussions with the City Clerk, the City follows the Louisiana Budget Act

Recommendation- We recommend that the City prepare and adopt formal wntten policies and procedures for budgeting which includes policies and procedures for preparing, adopting, monitoring, and amending the budget

Conective Action Plan We will adopt formal written policies and procedures for budgeting to be mcluded in the City's administrative policies and procedures manual

Finding - Question 3(c) The City's purchasing policies and procedures do not completely address the processing, reviewing, and approvmg of disbursements

Recommendation We recommend that consideration be given to amending the City's purchasmg policy to include policies and procedures for the processing of disbursements by the accounts payable department

Conective Action Plan We will implement the auditor's recommendation

Finding - Question 3(d) The City has no written policies and procedures for receipts, including receiving, recording, and preparing deposits

Recommendation We recommend that the City adopt policies and procedures for receipts, includmg receiving, recording, and preparing deposits The need for segregation of duties needs to be considered when draftmg these policies and procedures Someone independent of the deposit function and the recording of receipts should stamp all checks 'for deposit only' and list all receipts received in the mail Subsequently, the list should be compared to the actual deposits

Conective Action Plan The City has developed and adopted formal written policies and procedures for budgeting which include policies and procedures for prepanng, adopting, monitonng, and amending the budget This policy was formally adopted on Febmary 1, 2012

//. Credit Cards

Finding - Question 2 The City's credit card pohcy does not address the allowable business uses for the Wal-Mart and Visa cards, any additional documentation requirements to be included with the purchase receipt, required approvers and the monitoring of card usage

Recommendation We recommend that the City's credit card policy be amended to include an explanation of allowable business uses for the Wal-Mart and Visa credit cards The policy should also address documentation requirements, required approvers, authorized users, and how the card usage IS monitored

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June 30, 2011

Conective Action Plan The City's credit card policy will be evaluated and amended to include an explanation of allowable business uses for the Wal-Mart and Visa credit cards. The amended policy will also address documentation requirements, required approvers, authonzed users, and how the card usage is monitored

Finding - Question 3(A) Two of the 60 Wal-Mart credit card transactions reviewed were not supported by the original receipt and/or supporting documentation of the business/public purpose The City does not require departments to turn in receipts for fiiel purchases made using the FleetRite Net fuel credit cards Purchase orders are not being obtained for purchases greater than $300 Authorized users are also splitting transactions in order to reduce the transaction total to below the $300 purchase order requirement threshold Authonzed users are not retuming credit cards within the City's prescribed time frame

Recommendation We recommend that the City enforce its policy that credit card expenditures not be accepted and paid for unless all the required documentation is submitted If the employee cannot provide adequate documentation such amounts charged on the credit card should be reimbursed by the employee Consider having the employees who use credit cards sign an authorization form authorizing the City to withhold unallowable credit cards charges firom payroll as a deduction if the policy is not adhered to We also recommend that the City take steps to conect employees' mistaken interpretation of the City's purchasmg policy and enforce its policy that purchase orders be obtained for all purchases of $300 or greater We also recommend that the City take steps to enforce the provision in the credit card policy addressing the time frame in which credit cards must be retumed

Conective Action Plan* The City will implement procedures to more strictly enforce cunent purchasmg policies As of Febmary 1, 2012, any purchases m excess of $300 will require a purchase order. No department will be allowed to make purchases that total more than $300 m the same day unless a purchase order is obtamed Department heads were also reminded that all receipts and credit cards are to be retumed within 24 hours of signing out the credit card

Fmding - Question 3(D) The City is bemg charged finance fees and late charges on credit cards as a result of consistently making payments late

Recommendation Procedures should be implemented to ensure the timely payment of all credit card statements in order to eliminate finance fees and late charges

Corrective Action Plan The City will modify the manner in which credit card payments are made These payments will be included in the monthly appropriations that are paid on the first of each month to ensure that payments are remitted m a timely manner and to also ensure that no additional late fees are incuned

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June 30, 2011

/ / / . Contracts

Finding - Questions 1 and 2 The City cunently does not have written policies and procedures for contracts/contracting, including leasing The City does not have centralized control and oversight of contracts to ensure that services/deliverables received and payments made comply with the terms and conditions of the contracts

Recommendation The City should adopt and implement formal written policies and procedures for contracts/contracting These policies and procedures should address the types of services requiring written contracts, standard terms and conditions, legal review requirements, the approval process, and the monitoring process The City should also consider developing and implementing centralized control and oversight over contracts/contractmg

Conective Action Plan. The City will adopt and implement policies and procedures whereas someone is specifically identified with oversight responsibility of all contracts and that a list of all contracts is maintained summarizing significant provisions of such contracts

/K Payroll and Personnel

Finding - Question 3 All employee timesheets for the pay period ending June 25, 2011 were examined In two mstances the employee did not sign their timesheet as required In three instances, a supervisor did not sign the timesheet as required

Recommendation We recommend that steps be taken to ensure all timesheets are signed by both the employee and theu* supervisor as required

Conective Action Plan The City will implement the auditor's recommendation

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C Burton Kolder CPA* Russell F Champagne CPA' Victor R Slaven, CPA* P Troy Courville, CPA' Gerald A Thibodeaux, Jr CPA' Roberts Carter CPA* Arthur R Mixon CPA*

Penny Angelle Scnjggins CPA Chrtstine L Cousin CPA Wanda F Arcement CPA, CVA Allen J LaBry CPA Albert R Leger CPAPFSCSA* MarshallW Guidry CPA Stephen R Moore Jr, CPA,PFS,CFP*ChFC** James R Roy, CPA Robert J Metz, CPA AlanM Taylor CPA Kelly M Doucet CPA Cheryl L Bartley CPA Mandy B Self, CPA Paul L Delcambre Jr, CPA Kristin B Dauzat CPA Matthew E Margaglio CPA Jane R Hebert, CPA Bryan K. Joi*ert, CPA Stephen J Anderson CPA

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS

LLC

Retired Conrad 0 Chapman CPA* 2006 Tynes E Mixon, Jr, CPA 2011

OFFICES


450 East Main Street Newlbena LA 70560

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

113 East Bndge St 200 South Mam Street BreauxBndge U 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 Morgan City LA 70380 Phone (965) 384-2020 Fax (985) 384-3020

408 West Cotton Street Vitle Platte LA 705B6 Phone (337) 363-2792 Fax (337) 363-3049

332 West Sixth Avenue Oberiin U 70655 Phone (337) 639-4737 Fax (337) 639-4568

1013 Mam Street Franklin, LA 70536

Phone (337) 828-0272 Fax (337) 826-0290

133 East Waddil St Marksville LA 71351

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

621 Mam Street Pineville LA 71360

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

' A ProfeGSional Accountmg Cotporatun

WEB SITE WWW KCSRCPAS COM

MANAGEMENT LETTER



We have completed our audit of the basic financial statements of the City of Opelousas, Louisiana for the year ended August 31, 2011, and subrmt the followang recommendations for your consideration*

(1) The City of Opelousas named the North Park Civic Center m honor of a living person, which is a violation of Louisiana Revised Statute 42*267

(2) All employee timesheets for the pay period endmg June 25,2011 were examined In two mstances, the employee did not sign their timesheet as required. In three instances, a supervisor did not sign the timesheet as reqmred We recommend that steps be taken to ensure all timesheets are signed by both the employee and their supervisor as reqmred

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 m implementing our recommendations, please feel firee to contact us

Kolder, Champagne, Slaven & Companyy LLC Certified Public Accountants


Member of AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUrJTANTS

MefTiber of SOCIETY OF LOUISIANA

CERTIFIED PUBLIC ACCOUNTANTS

Financial Report Year Ended August 31, 2011app1.lla.la.gov/PublicReports.nsf/531E9489CFE... ·...

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