Financial Report Year Ended June 30,2010 - app1.lla.state...

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TOWN OF SUNSET, LOUISIANA

Financial Report

Year Ended June 30,2010

Under provisions of state law, this report is a public document A copy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office ofthe Legislative Auditorand, where appropriate, at the office of the parish clerk of court.

Release Date

TABLE OF CONTENTS

Page

Independent Auditors' Report 1-2

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCDU. STATEMENTS (GWFS) Statement of net assets 5 Statement of activities 6

FUND FINANCL\L STATEMENTS (FFS) Balance sheet - govemmental funds 9 Reconciliation ofthe govenmiental funds balance sheet

to the statement of net assets 10 Statement of revenues, expenditures, and changes in fund balances-

govemmental funds 11 Reconciliation ofthe statement of revenues, expenditures, and

changes in fund balances of govemmental funds to the statement of activities 12 Statement of net assets - proprietary fijnd 13 Statement of revenues, expenses, and changes in flind net

assets - proprietary fimd 14 Statement of cash flows - proprietary fund 15-16

Notes to basic financial statements 17-36

REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedules:

General Fund 38 Sales Tax Special Revenue Fund 39

OTHER SUPPLEMENTARY INFORMATION General Fund - budgetary comparison schedule - revenues 41 General Fund - budgetary comparison schedule- expenditures 42-44 Enterprise Fund - departmental analysis of revenues and expenses 45 Enterprise Fimd - comparative statement of revenues, expenses, and changes

in fund net assets - proprietary fiind 46 Schedule of number of ufility customers (unaudited) 47 Schedule of utility rates (unaudited) 48 Schedule of insurance in force (unaudited) 49-50

INTERNAL CONTROL AND COMPLL\NCE Report on Intemal Control over Financial Reporting and on

Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Govemment Auditing Standards 52-53

Summary schedule of current and prior year audit findings and coirective action plan 54

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC C. Burton Kolder, CPA*

RuMcIl F. Chunpigne. CPA*

ViaorR Slaven, CPA*

P. Troy Courville, CPA*

GCTM A Thibodwmx, Jr..CPA*

Robert S. Ctncr. CPA*

Arthur R, Mixon. CPA*

Tynet E. Mixon, Jr^ CPA

Allen J. UBry, CPA

Albert R. Leger. CPAJ>FS,CSA* Penny Angelle Scruggins, CPA Christine L Cousin, CPA Mary T. TWbodeaux. CPA MarshaD W. Guidry. CPA Alan M. Taylor, CPA James R Roy, CPA Robed J. Metz. CPA Kelly M. Doucet, CPA Cheryl L Bartley. CPA Mandy B, Self, CPA Paul L Delcambre, Jr. CPA Wavte F. Arcement. CPA. CVA Kristm B. Dauzat. CPA Richard R. Anderson Sr., CPA Carolyn C. Anderson. CPA

CERTIFIED PUBLIC ACCOUNTANTS

OFFICES

1B3 South Beadle Rd Lafayette. LA 70508 Phone (337) 232-4141 Fax (337) 232-6860

113 East Bridge St. Breaux Brxlge. LA 70517 Phone (337) 332-4020 Fax (337) 332-2867

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

408 West Cotton Street Vllle Platte, LA 70566 Phone (337) 363-2702 Fax (337) 363-3049

332 West Sixth Avenue Oberiin, LA 70655 Phone (337) 63^4737 Fax (337) 639^568

450 East Main Street New Ibena, LA 70560

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

200 South Main Streel Abbevitto, LA 70510

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

1013 Main Street FrarAlln. LA 70538

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

133 East Waddil St Mar1(Bville LA 71351

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

621 Main Street Pineville, LA 71360

Phone (318) 442-4421 Fax (318) 442-9633

INDEPENDENT AUDITORS' REPORT WEBSITE

WWW.KCSRCPAS COM

Retired' Corrad 0. Chapman, CPA' 2006 Harry J. Clostio, CPA 2007

' A Piofsulonal Accounting Corpontton

The Honorable Cecil Lavergne, Mayor, and Members ofthe Board of Aldermen

Town of Sunset, Louisiana

We have audited the accompanying basic fmancial statements of the govemmental activities, the business-type activities, and each major fimd, and the aggregate remaining flind information of the Tov^ of Sunset, Louisiana, as of and for the year ended June 30, 2010, which collectively comprise the Tovm's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Town of Sunset, Louisiana'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 United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General ofthe United States, Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are fi^e 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 financial statements referred to above present fairly, in all material respects, the financial position of the govemmental activities, the business-type activities, and each major fund of the Town of Sunset, Louisiana, as of June 30, 2010, 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 America.

In accordance with Govemment Auditing Standards, we have also issued our report dated November 9, 2010, on our consideration ofthe Town of Sunset, Louisiana's intemal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of intemal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the intemal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Govemment Auditing Standards and should be considered in conjunction with this report in considering the results of our audit.

Member of: AMERICAN INSTITUTE OF CERTFIED PUBLIC ACCOUNTANTS

Member of: SOCIETY OF LOUISIANA


http://WWW.KCSRCPAS

The required supplementary information on pages 38 and 39 is not a required part of the basic financial statements but is supplementary information required by the Govemmental Accounting Standards Board. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

The Town of Sunset has not presented management's discussion and analysis that the Govemmental Accounting Standards Board has determined is necessary to supplement, although not required to be part of, the basic financial statements.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Sunset, Louisiana's fmancial statements as a whole. The other supplementary information on pages 41 through 50 is presented for purposes of additional analysis and is not a required part of the basic financial statements. All of the supplementary information, except for the schedule of number of utility customers, the schedule of utility rates and the schedule of insurance in force, has been subjected to the auditing procedures applied in the audit ofthe basic financial statements and, in our opinion, is fairly stated in relation to the basic financial statements taken as a whole. The schedule of number of utility customers, the schedule of utility rates, and the schedule of insurance in force have not been subjected to the auditing procedures applied in the audit ofthe basic fmancial statements and accordingly, we express no opinion on them.

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

Lafayette, Louisiana November 9, 2010

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS)


Statement ofNet Assets June 30, 2010

2010

ASSETS Current assets:

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

Total current assets

Noncurrent assets: Restricted assets:

Cash and interest-bearing deposits Capital assets:

Land Construction in progress Capital assets, net

Total noncurrent assets

Total assets

LL\BILrriES Current liabilities:

Accounts, salaries and other payables Bonds payable Accmed interest

Total current liabilities

Noncurrent liabilities: Customers' deposits Bonds payable

Total noncurrent liabilities

Total liabilities

NET ASSETS Invested in capital assets, net of related debt Restricted for debt service Unrestricted

Total net assets

Govemmental Activities

$ 423,755 303

65,617 21,266 4,157

Business-Type Activities

$ 23,361 62,023

-

(21.266) 3,314

•

Total

$ 447,116 62,326 65,617

-7,471

515,098 67,432

144,140

582,530

144,140

15,000 114,484 251,177

380,661

895,759

50,210 -

935,781

1,130,131

1,197.563

65,210 114,484

1,186,958

1,510,792

2,093,322

73,873 --

73,873

_

-

-

73,873

380,661 -

441,225

$ 821,886

32,771 26,773

215

59,759

86.960 105,468

192,428

252,187

880,523 30.192 34.661

$ 945,376

106,644 26,773

215 133,632

86,960 105.468

192.428

326,060

1,261.184 30.192

475,886

$1,767,262

The accompanying notes are an integral part ofthe basic financial statements.

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FUND FINANCIAL STATEMENTS (FFS)

MAJOR FUND DESCRIPTIONS

General Fund

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

Special Revenue Fund

Sales Tax Fund -To account for the receipt and use of proceeds ofthe Towoi's two 1% sales and use taxes. The taxes are dedicated to constructing, acquiring, extending, improving and/or maintaining sewers and sewerage disposal works, waterworks, public streets, roads, alleys, sidewalks, and drainage facilities, including the purchase of equipment therefore. The 2009 tax also includes municipal buildings, fire protection and police protection, including equipment, facilities and furnishings. Both tax proceeds may also be flinded into bonds or used to pay any bonded or funded indebtedness of the Tovm incurred for such capital purposes, to the extent and in the manner provided by state law.

Debt Service Fund

General Obligation Bonds Fund -To account for the monies remaining from the collection of a 1.88 property tax millage for the payment of 1988 general obligation bonds which are paid off.

Enterprise Fund

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

TOWN OF SUNSET, LOUISL\NA

Balance Sheet Govemmental Funds

June 30. 2010

ASSETS

Cash and interest-bearing deposits Receivables:

Taxes Accmed interest Due from other govemmental units Due from other funds

Prepaid items Total assets

General

$351,407

295 8

65,617 21,266 4,157

$ 442,750

Special Revenue

$70,976

_

-

-

--

$70,976

Debt Service

$ 1,372

_

-

-

--

S 1,372

$

1

Total

423,755

295 8

65,617 21.266 4.157

515.098

LIABILITIES AND FUND BALANCES

Liabilities: Accounts payable Cash bonds payable

Total liabilities

Fund balances -Reserved for prepaid items Unreserved

Total fimd balances

Total liabilities and fund balances

$ 49,738 24,135

49.738 24.135

73.873

4,157 364,720

368,877

$ 442,750

_

70,976

70,976

$70,976

-

1,372

1,372

$ 1,372

73,873

4,157 437,068

441,225

$ 515.098


TOWN OF SUNSET, LOUISLANA

Reconciliation ofthe Govemmental Funds Balance Sheet to the Statement ofNet Assets

June 30, 2010

Total fund balances for govemmental funds at June 30, 2010 $ 441,225

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

Capital assets used in govemmental activities are not fmancial resources and, therefore, are not reported in the funds. Those assets consist of:

Land $ 15,000 Constmction in progress 114,484 Buildings, net of $217,910 accumulated depreciation 28,202 Infrastructure, net of $26,349 accumulated depreciation 49,694 Machinery and equipment net of $1,056,795 accumulated depreciation 173,281 380,661

Total net assets of govemmental activities at June 30,2010 $ 821,886


10


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

For the Year Ended June 30,2010

Revenues: Taxes Licenses and permits Intergovemmental Fines and forfeits Miscellaneous

Total revenues

Expenditures: Current -

General govemment Public safety:

Police Fire

Streets Capital outlay Debt service

Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources (uses): Transfers in Transfers out

Total other financing sources (uses)

Net changes in fund balances

Fund balances beginning

Fund balances, ending

General

$ 240,196 112,260 178,204 173,922 104,449

809,031

369,720

560,031 29,248

193,798 140,960

-

1,293,757

(484,726)

637,872 -

637,872

153,146

215,731

$ 368,877

Special Revenue

$ 498,358 -

--

398

498,756

4,938

-

--

--

4,938

493.818

-

(504,472)

(504.472)

(10,654)

81,630

$ 70,976

Debt Service

$ --

--

122

122

-

-

--

-

151

151

(29)

--

-

(29)

1,401

$ 1,372

Total

$ 738,554 112,260 178.204 173,922 104,969

1,307,909

374,658

560,031 29.248

193.798 140.960

151

1,298,846

9,063

637.872 (504,472)

133,400

142,463

298,762

$ 441,225

The accompanying notes are an integral part ofthe basic fmancial statements.

11


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

to the Statement of Activities For the Year Ended June 30, 2010

Total net changes in fund balances at June 30, 2010 per Statement of Revenues, Expenditures and Changes in Fund Balances $ 142,463

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

Govemmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Govemmental funds do not report gains or losses on sales of assets. They only report the proceeds form the sale.

Capital outlay which is considered expenditures on Statement of Revenues, Expenditures and Changes in Fund Balances $ 140,960

Depreciation expense for the year ended June 30,2010 (109,492) Gain on sale of capital assets 22,659 Proceeds from the sale of capital assets (83,500) (29,373)

Total changes in net assets at June 30,2010 per Statement of Activities $ 113,090

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

12

TOWN OF SUNSET. LOUISIANA

Statement ofNet Assets Proprietary Fund

June 30, 2010

ASSETS Current assets:

Cash and interest-bearing deposits, at cost $ 23,361 Receivables -

Accounts receivable 39,649 Unbilled utility receivables 21,011 Other receivables 1,363

Prepaid Items 3,314

Total current assets 88,698

Noncurrent assets: Restricted assets -

Cash and interest-bearing deposits, at cost 144,140

Capital assets -Land 50,210 Other capital assets, net of accumulated depreciation 935,781

Total noncurrent assets 1,130,131

Total assets 1,218,829

LIABILFTIES Current liabilities: Accounts payable 31,080 Due to other funds 21,266 Other liabilities 1,691 Payable from restricted assets -

Revenue bonds 26,773 Accmed interest 215

Total current liabilities 81,025

Noncurrent liabilities: Customers' deposits 86,960 Revenue bonds payable 105,468

Total noncurrent liabilities 192,428

Total liabilities 273,453

NET ASSETS Invested in capital assets, net of related debt 880,523 Restricted for debt service 3 0,192 Unrestricted 34,661

Total net assets $ 945.376


13


Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Fund

For the Year Ended June 30, 2010

Operating revenues: Charges for services -

Gas sales Water sales Sew er charges

Miscellaneous Total operating revenues

Operating expenses: Gas department Water department Sewer department

Total operating expenses

Operating income

Nonoperating revenues (expenses): Interest income Interest expense

Total nonoperating revenues (expenses)

Income before transfers

Transfers out

Change in net assets

Net assets, beginning

Net assets, ending

$ 283,934

221,319

143,544

28,442

677,239

214,817

222,688

136,389

573,894

103,345

581

(6,480)

(5,899)

97,446

(133,400)

(35,954)

981.330

$ 945,376


14


Statement of Cash Flows Proprietary Fund


Cash flows from operating activities: Receipts from customers $ 648,797 Payments to suppliers (391,448) Payments to employees for payroll and benefits (88,439) Other receipts 28,442

Net cash provided by operating activities 197,352

Cash flows fi"om noncapital financing activities: Transfers to other funds (133,400)

Cash flows from capital and related financing activities: Principal paid on revenue bonds payable (25,597) Interest and fiscal charges paid on revenue bonds payable (6,581) Net change in meter deposits 2,502 Acquisition of property, plant and equipment (20,126)

Net cash used by capital and related financing activities (49,802)

Cash flows from investing activities: Interest on investments 581

Net decrease in cash and cash equivalents 14,731

Cash and cash equivalents, beginning of period 152,770

Cash and cash equivalents, end of period $ 167.501

(continued)


Statement of Cash Flows Proprietary Fund - (Continued)


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

Operating income

Adjustments to reconcile operating income to net cash provided by Of>erating activities: Depreciation Changes in current assets and liabilities:

Decrease in accounts receivable Decrease in unbilled utility receivable Increase in other receivables Decrease in accounts payable Decrease in other liabilities

Net cash provided by operating activities

$ 103,345

92,514

2,961 3,252 (280)

(3,973) (467)

94,007

$ 197,352

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

Cash and cash equivalents, beginning of period, restated Cash and interest-bearing deposits - unrestricted Cash and interest-bearing deposits - restricted

Total cash and cash equivalents

$ 15,657 137,113 152,770

Cash and cash equivalents, end of period -Cash and interest-bearing deposits - unrestricted Cash and interest-bearing deposits - restricted

Total cash and cash equivalents

23,361 144,140 167,501

Net decrease $ 14,731


16


Notes to Basic Financial Statements

(1) Summarv of Significant Accounting Policies

The accompanying financial statements of the Town of Sunset (Town) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to govemmental units. GAAP includes all relevant Govemmental Accounting Standards Board (GASB) pronouncements. In the govemment-wide financial statements and the fund financial statements for the proprietary fiind. Generally Accepted Accounting Standards (ASC) on or before November 30, 1989, have been applied unless those standards conflict with or contradict GASB pronouncements, in which case. GASB prevails. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note.

A. Financial Reporting Entitv

The Town of Sunset was incorporated under the provisions ofthe Lawrason Act. The Town operates under the Mayor-Board of Aldermen form of govemment.

Govemmental Accounting Standards Board (GASB) Statement No. 14 established criteria for determining the govemmental reporting entity and component units that should be included within the reporting entity for financial reporting purposes. Under provisions of this Statement, this report includes all funds that are controlled by or dependent on the Tovm executive and legislative branches (the Mayor and Board of Aldermen). Control by or dependence on the Town was determined on the basis of budget adoption, taxing authority, authority to issue debt, election or appointment of goveming body, and other general oversight responsibility. The Town has no components and therefore, none are presented in the govemment-wide financial statements.

B. Basis of Presentation

Govemment-Wide Financial 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 reporting entity. The statements distinguish between govemmental and business-type activities. Govemmental activities generally are financed through taxes, intergovenmiental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to extemal parties for goods or services.

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

17

TOWN OF SUNSET, LOUlSL\NA

Notes to Basic Financial Statements (Continued)

Fund Financial Statements

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

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

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

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

The major funds ofthe Town are described below:

Govemmental Funds -

General Fund

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

Special Revenue Fund

Sales Tax Fund -

The Sales Tax Fund is used to account for the proceeds ofthe two 1% sales and use taxes that are legally restricted to expenditures for specific purposes.

Debt Service Fund - General Obligation Bonds Fund -

The General Obligation Bonds Fund is used to account for the monies remaining from the collection of a 1.88 property tax millage dedicated for the payment of 1988 general obligation bonds which are paid off.

18



Proprietary Fund -

Enterprise Fund

Enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent ofthe goveming body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the goveming body has decided that periodic determination of revenues eamed, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Town of Sunset's enterprise fund is the Utility Fund.

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 ofthe 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 appropriate:

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

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

19



Basis of Accounting

In the govemment-wide statement of net assets and statement of activities, both govemmental and business-type activities are presented using the accmal basis of accounting. Under the accmal basis of accounting, revenues are recognized when eamed and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33 "Accounting and Financial Reporting for Nonexchange Transactions."

Govemmental fund financial statements are reported using the current financial resources measurement focus and the modified accmal 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 period. For this purpwse, the govemment considers revenues to be available if they are collected within 60 days ofthe end ofthe current fiscal period. Expenditures (including capital outlay) generally are recorded when a liability is incurred, as under accmal accounting. However, debt service expenditures are recorded only when payment is due.

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

D- Assets, Liabilities and Equitv

Cash and interest-bearing deposits

For purposes ofthe statement of net assets, cash and interest-bearing deposits include all demand accounts, savings accounts, and certificates of deposits of the Tovra. For the purpose of the proprietary fund statement of cash flows, "cash and cash equivalents" include all demand and savings accounts, and certificates of deposit or short-term investments with an original maturity of three months or less.

Interfund receivables and payables

During the course of operations, numerous transactions occur between individual fimds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as "due to and from other funds." Short-term interfiind loans are reported as "interfund receivables and payables." Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund receivables and payables between funds within govemmental activities are eliminated in the statement of net assets.

20



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 and franchise taxes. Business-type activities report customer's utility service receivables as their major receivables. Uncollectible utility service receivables are recognized as bad debts through the establishment of an allowance account at the time information becomes available which would indicate the uncollectibility ofthe particular receivable. The allowance for uncollectibles for customers' utility receivables was $2,823 at June 30, 2010. Unbilled utility service receivables resulting from utility services rendered between the date of meter reading and billing and the end ofthe month, are recorded at year-end.

Capital Assets

Capital assets, which include property, plant, equipment, and infrastmcture assets, are reported in the applicable govemmental or business-type activities columns in the govemment-wide or fmancial statements. Capital assets are capitalized at historical cost or estimated cost if historical is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The Tovra 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. Prior to July 1, 2001, governmental funds' infi-astmcture assets were not capitalized. These assets have been valued at estimated historical cost.

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

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

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

21



Restricted Assets

Restricted assets include cash and interest-bearing deposits ofthe proprietary fiind that are legally restricted as to their use. The restricted assets are related to the revenue bond accounts and utility meter deposits.

Long-term debt

The accounting treatment of long-term debt depends on whether the assets are used in govemmental fund operations or proprietary fund operations and whether they are reported in the govemment-wide or fiind 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 primarily of the revenue bonds payable and utility meter deposits payable.

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

Compensated Absences

Vacation and sick leave are recorded as expenditures of the period in which paid. Vacation must be taken in the year accmed and cannot be carried over. Sick leave is accumulated by employees at a rate dependent upon number of years of employment. Although sick leave is available for employees when needed, it does not vest nor is it payable at termination of employment. Therefore, no liability has been recorded in the accounts as of June 30, 2010.

Equity Classifications

In the govemment-wide 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 restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, constmction, or improvement of those assets.

22


Notes to Basic Financiai Statements (Continued)

b. Restricted 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 "restricted" or "invested in capital assets, net of related debt."

In the fiind statements, govemmental fund equity is classified as fund balance. Fund balance is further classified as reserved and unreserved, with unreserved further split between designated and undesignated. Proprietary fund equity is classified the same as in the govemment-wide statements.

E. Revenues, Expenditures, and Expenses

Operating Revenues and Expenses

Operating revenues and expenses for 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 financing, noncapital financing, or investing activities.

Expenditures/Expenses

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

In the fiind financial statements, expenditures are classified as follows:

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

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

Interfiind Transfers

Permanent reallocations of resources between fiinds 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.

23



Revenue Restrictions

The TowTi has various restrictions placed over certain revenue sources fi'om state or local requirements. The primary restricted revenue sources include:

Revenue Source Legal Restrictions of Use Sales Tax See Note 3 Utility Fund Revenue Debt Service and Utility Operations

The Town uses unrestricted resources only when restricted resources are fiilly depleted.

Budget and Budgetary Accounting

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

1. Prior to June 15, the Town Clerk submits to the Mayor and Board of Aldermen a proposed operating budget for the fiscal year commencing the following July 1.

2. A summary ofthe 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 hearing is held on the proposed budget at least ten days after publication ofthe call for the hearing,

4. After the holding of the public hearing and completion of all action necessary to finalize and implement the budget, the budget is adopted through passage of a resolution 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 fiinction to another or involving increases in expenditures resulting from revenues exceeding amounts estimated require the approval ofthe Board of Aldermen.

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

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

24



H. Use of Estimates

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

(2) Ad Valorem Taxes

Ad valorem taxes attach as an enforceable lien on property as of January 1 of each year. The taxes are based on assessed values determined by the Tax Assessor of St. Landry Parish and are collected by the Sheriff. Taxes were billed to taxpayers by the Assessor in November and are due by December 31, becoming delinquent on January 1 ofthe following year. Tovm property tax revenues are budgeted in the year billed.

For the year ended June 30, 2010, taxes of 6.56 mills were levied on property with assessed valuations totaling $16,756,260 and were dedicated for general corporate purposes.

Gross taxes levied for the current fiscal year totaled $109,748. The taxes are remitted to the Town net of deductions for Pension Fund contributions.

(3) Sales and Use Tax

Proceeds of two 1 percent sales and use taxes (accounted for in the Sales Tax Fund - a special revenue fiind) levied by the Town of Sunset (2010 collections $498,358) are dedicated to the following purposes:

Constmcting and purchasing municipal, fire and police department facilities, fiimishings and equipment; opening, constmcting, and improving drains, drainage canals, and subsurface drainage; constmcting. acquiring, or improving any work of public permanent improvement; and purchasing and acquiring all equipment and fiimishing for the public works, buildings, improvement, and facilities ofthe Town of Sunset.

(4) Cash and Interest-Bearing Deposits

Under state law, the Town may deposit fimds within a fiscal agent bank organized under the laws of the State of Louisiana, the laws of any other state in the Union, or the laws of the United States. The Tovm may invest in certificates and time deposits of the state banks organized under

25



Louisiana law and national banks having principal offices in Louisiana. At June 30. 2010, the Town had cash and interest-bearing deposits (book balances) totaling $591,256 as follows:

Demand deposits $ 405,232 Money maricet accounts 143,135 Time deposits 42,889

Total $591,256

Custodial credit risk for deposits is the risk that in the event of the failure of a depository financial institution, the Town's deposits may not be recovered or will not be able to recover 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 ofthe pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agent bank. These securities are held in the name of the Town or the pledging fiscal agent bank by a holding or custodial bank that is mutually acceptable to both parties. Deposit balances (bank balances) at June 30, 2010, were exposed to custodial credit risk as follows:

Bank balances $625,715

Federal deposit insurance 625,715 Uninsured and collateral held by the pledging bank or other agency

but not in the name ofthe Town -

Total FDIC insurance and collateral $ 625,715

(5) Receivables

Receivables at June 30, 2010 of $62,326 consist ofthe following:

Ad valorem taxes Accounts Unbilled Other

Totals

Govemmental Activities General

Fund $ 295

-

-

8

$ 303

Business-type Activities Utility Fund

$ -

39,649 21,011

1,363

$ 62,023

Total $ 295

39.649 21,011

1,371

$ 62,326

26



The schedule of aged accounts for the Utility Fund accounts receivable as of June 30, 2010 was as follows:

Current 30 days 60 days 90 days

Total

$32,365 4,042 1,849 1,393

$39,649

(6) Due from Other Govemmental Units

Due from other govemmental units consisted ofthe following:

Franchise Fees License Fees Beer Tax Racino Revenue Fire Insurance Rebate Other

Total

Govemmental Activities

$

$

32,728 17,854 1,876 3,533 8,126 1,500

65,617

(7) Restricted Assets

Restricted assets consisted ofthe following at June 30,2010:

Customers' deposits Revenue bond depreciation and contingency Sewer reserve account

Total restricted assets

Business-Type Activities $ 90,106

32,804 21.230

$ 144,140

27



(8) Capital Assets

Capital asset activity for the year ended June 30, 2010 was as follows:

Govemmental activities: Capital assets not being depreciated:

Land and constmction in progress Other capital assets:

Buildings Infrastmcture Equipment

Totals

Less accumulated depreciation Buildings Infrastmcture Equipment

Total accumulated depreciation

Govemmental activities, capital assets, net

Business-type activities: Capital assets not being depreciated:

Land Other capital assets:

Utility system and extensions Machinery and equipment

Totals Less accumulated depreciation

Utility system and extensions Machinery and equipment

Total accumulated depreciation

Business-type activities, capital assets, net

Balance 07/01/09

$ 75,841

273,436 76,043

1,203,600

1,628,920

239,056 22,860

956,970

1,218,886

$ 410,034

$ 50,210

5,581,027 14,743

5,645,980

4,568,232 19,369

4,587,601

$1,058,379

Additions

$

—

—

1

$

—

1

114,484

-

-26,476

140,960

6,178 3,489

99,825

109,492

31,468

-

20,126 -

20,126

92,001 513

92,514

(72,388)

Deletions

$

L

$

L

60,841

27,324 --

88,165

27,324 --

27,324

60,841

-

_

--

-

_

Balance 06/30/10

$ 129,484

246,112 76,043

1,230,076

1,681,715

217,910 26,349

1,056,795

1,301,054

$ 380,661

$ 50,210

5,601,153 14,743

5,666,106

4,660,233 19,882

4,680,115

$ 985,991

28



Depreciation expense was charged to govemmental activities as follows:

General govemment $ 4,221 Police 38,888 Fire 59,815 Streets 6,568

Total depreciation expense $ 109,492

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

Water $ 42,115 Gas 12,542 Sewer 37,857

Total depreciation expense $ 92,514

(9) Accounts. Salaries, and Other Payables

The accounts, salaries, and other payables consisted ofthe following at June 30, 2010:

Govemmental Business-Type Activities Activities Total

Accounts Cash Bonds Other liabilities

$ 49.738

24.135

$31,080

1,691

$ 80,818

24,135

1,691

Totals $ 73.873 $ 32.771 $106,644

29



(10) Changes in Long-Term Debt

The following is a summary of long-term debt transactions of the Town for the year ended June 30,2010:

Business-type Activities

Long-term debt payable, July 1, 2009 Long-term debt issued Long-term debt retired

Long-term debt payable, June 30, 2010

Long-term debt payable at June 30, 2010 is comprised ofthe following:

Revenue bonds -

$410,000 1995 Sewer Utility Revenue Bond, dated Febmary 17, 1995; due in monthly installments of $2,681 through Febmary 2015; interest at 4.5 percent; secured by Utility Fund revenues $ 132 241

Revenue Bonds

$ 157,838

(25,597)

$ 132,241

The long-term debt is due as follows:

Year ending June 30,

2011

2012

2013

2014

2015

Total

Business-type Activities Principal payments

26,773 28,003 29,289 30,635 17,541

$ 132,241

Interest payments

5,404 4,174 2,887 1,542

247

$ 14,254

30



(11) Flow of Funds: Restrictions on Use - Utilities Revenues

Utility Revenue Bonds:

Under the terms ofthe Bond indenture on outstanding Public Utility Bonds dated Febmary 17, 1995, all income and revenues (hereinafter referred to as revenue) of every nature, eamed or derived from operation of the Utility System, are pledged and dedicated to the retirement of said bonds, and are to be set aside into the following special funds:

Each month, there will be set aside into a fund called the "Bond and Interest Sinking Fund" the amount of $2,681 each month. Such transfers shall be fully sufficient to assure the prompt payment of principal and interest installments as they become due and may be used only for such payments.

There shall also be set aside into a "Bond Reserve Fund" the amount of $135 each month until the amount of $32,177 has been accumulated therein. Such amounts may be used only for the payment of maturing bonds and interest coupons for which sufficient fiinds are not on deposit in the Bond and Interest Sinking Fund and as to which there would otherwise be default.

Funds will also be set aside into a "Contingency Fund" at the rate of $243 each month. Money in this fund may be used for the making of extraordinary repairs or replacements to the system which are necessary to keep the system in operating condition and for which money is not available as a maintenance and operation expense. Money in this fiind may also be used to pay principal or interest on the bonds falling due at any time there is not sufficient money for payment in the other bond funds.

All ofthe revenues received in any fiscal year and not required to be paid in such fiscal year into any of the above noted funds shall be regarded as surplus and may be used for any lawful corporate purpose.

The Town of Sunset was in compliance with all significant limitations and restrictions in the bond indentures at June 30, 2010.

31



(12) Emplovee Retirement

All employees are members of one ofthe following retirement systems:

Federal Social Security System Municipal Employees' Retirement System of Louisiana

Municipal Police Employees' Retirement System of Louisiana

Pertinent information relative to each plan follows:

A. Federal Social Security System All employees of the Tovm of Sunset are members of the Federal Social

Security System. The Town and its employees contribute a percentage of each employee's salary to the System (7.65% contributed by the Town; 7,65% by the employee). Total covered wages for the year ended June 30, 2010 was $701,315. The Town's contribution during the year ended June 30, 2010 amounted to $43,482.

B. Municipal Employees' Retirement Svstem of Louisiana System

Eligible employees of the Town participate in the Municipal Employees' Retirement System, which is a cost-sharing, multiple-employer defined benefit public employee retirement system. The plan is controlled and administered by a separate board of tmstees. Pertinent information relative to the plan follows:

Plan Description - The System is composed of two distinct plans. Plan A and Plan B, with separate assets and benefit provisions. All employees of the municipality are members of Plan A.

All permanent employees working at least 35 hours per week who are not covered by another pension plan and are paid wholly or in part from municipal fiinds and all elected municipal officials are eligible to participate in the System. Under Plan A, employees who retire at or after age 60 with at least 10 years of creditable service, at or after age 55 with at least 25 years of creditable service, or at any age with at least 30 years of creditable service are entitled to a retirement benefit, payable monthly for life, equal to 3% of their final-average salary for each year of creditable service. Furthermore, employees with at least 10 years of creditable service, but less than 30 years, may take early retirement benefits commencing at or after age 60, with the basic benefit reduced 3% for each year retirement precedes age 62, unless he has at least 30 years of creditable service. Final-average salary is the employee's average salary over the 36 consecutive or joined months that produce the highest average. Employees who terminate with at least the amount of creditable service stated above, and do not withdraw their employee contributions, may retire at the ages specified above and receive the benefit accmed to their date of termination. The System also provides death and disability benefits. Benefits are established or amended by state statute.

32



The system issues an annual publicly available fmancial report that includes financial statements and required supplementary information for the System. That report may be obtained by writing to the Municipal Employees' Retirement System of Louisiana, 7937 Office Park Boulevard, Baton Rouge, Louisiana 70809 or by calling (504) 925-4810.

Funding policy - Under Plan A, members are required by state statute to contribute 9.25% of their annual covered salary and the Tovm is required to contribute at an actuarially determined rate. The current rate is 13.50% of annual covered payroll. Contributions to the System also include one-fourth of 1% (except Orleans and East Baton Rouge parishes) of the taxes shown to be collectible by the tax rolls of each parish. These tax dollars are divided between Plan A and Plan B based proportionately on the salaries of the active members of each plan. The contribution requirements of plan members and the Town are established and may be amended by state statute. As provided by R.S. 11:103, the employer contributions are determined by actuarial valuation and are subject to change each year based on the results ofthe valuation for the prior fiscal year. The Town's contributions to the System under Plan A for the years ending June 30, 2010, 2009, and 2008 were $30,638, $20,748, and $22,817 respectively, equal to the required contributions for each year.

Municipal Police Employees' Retirement System of Louisiana (Svstem)

Eligible employees of the Town participate in the Municipal Police Employees' Retirement System, which is a cost-sharing, multiple-employer defined benefit public employee retirement system. The plan is controlled and administered by a separate board of tmstees. Pertinent information relative to the plan follows:

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

The System issues an annual publicly available financial report that includes financial statements and required supplementary information for the System, That report may be obtained by writing to the Municipal Police Employees' Retirement System, 8401 United Plaza Boulevard, Room 270, Baton Rouge, Louisiana 70809-7017.

33



Funding Policy - Plan members are required by state statute to contribute 7.5% of their armuai covered salary and the Tovm is required to contribute at an actuarially determined rate. The current rate is 13.5% 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 R.S, 11:103, the employer contributions are determined by actuarial valuation and are subject to change each year based on the results of the valuation for the prior fiscal year. The contributions to the System for the years ending June 2010, 2009, and 2008 were $2,569, $2,161, and $2,998 respectively, equal to the required contributions for each year.

(13) Segment Information for the Enterprise Fund

The Tovm of Sunset maintains one enterprise fund with three departments which provide water, sewerage and gas services. Segment information for the year ended June 30, 2010, was as follows:

Operating revenues

Operating expenses: Depreciation Other


Operating income

Compensation of Town Officials

Water Department

$ 241,952

42,115 180,573

222,688

$ 19,264

Sewerage Department

$ 147,703

37,857 98,532

136,389

$ 11,314

Gas Depaitinent

$ 287,584

12,542 202,275

214,817

$ 72,767

Total Enterprise

Fund

$ 677.239

92,514 481,380

573,894

$ 103,345

A detail of compensation paid to the Mayor and Board of Aldermen for the year ended June 30, 2010 follows:

Cecil Lavergne, Mayor

Aldermen: Dalton Belson Melanie White Charles James Bemice Smith Joseph Meche

$ 10,800

6,000 6,000 6,000 6,000 6.000

$ 40.800

34



(15) Pending Litigation

The Town is a defendant in various claims and lawsuits claiming damages. Management and legal counsel is of the opinion that monetary damages would be minimal, if any, in excess of insurance coverage.

(16) Risk Management

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

(17) Interfund Transactions

A. Receivables and Payables

Due to the General Fund from the Utility Fund for reimbursement for expenditures paid $ 21,266

B. Transfers

Transfers In Transfers Out Major govemmental fiinds:

General Fund Sales Tax Special Revenue Fund

Proprietary Fund: Enterprise Fund

Total

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 unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetaiy authorizations.

$ 637,872

$ 637,872

$ -504,472

133,400

$637,872

35



(18) Subsequent Event Review

The Town's management has evaluated subsequent events through November 9, 2010, the date which the financial statements were available to be issued.

(19) New Accounting Pronouncements

The Govemmental Accounting Standards Board (GASB) issued Statement 54 "Fund Balance Reporting and Govemmental Fund Type Definitions." The Tovm is required to implement this standard for the fiscal year ended June 30, 2011. The Tovm has not yet determined the fiill impact that adoption of GASB Statement 54 will have on the financial statements.

36

REQUIRED SUPPLEMENTARY INFORMATION

37

TOWN OF SUNSET, LOUISLVNA General Fund

Budgetary Comparison Schedule For the Year Ended June 30,2010

Net change in fund balance

Fund balance, begiiming

Fund balance, ending

Budget

Original Final Actual

Variance with Final Budget

Positive (Negative)

Revenues: Taxes Licenses and permits Intergovemmental Fines and forfeits Miscellaneous

Total revenues

Expenditures: Current -

General govemment Public safety:

Police Fire

Streets Capital outlay

Total expenditures

Deficiency of revenues over expenditures

Other financing sources: Transfer from Utility Fund

Transfer from Sales Tax Fund

Total other financing sources

$ 258,000 91,000 71,000

255,000 53,000

728,000

318,000

531,000 43,500

200.000 99,000

1,191,500

(463,500)

90,000

384,000

474,000

$ 235,000 94,000

110,000 164,000 59,000

662,000

360,000

618,000 40,000

174,000 61,000

1,253,000

(591,000)

120,000

430,000

550,000

$ 240,196 112,260 178,204 173,922 104,449

809,031

369,720

560,031 29,248

193,798 140,960

1,293,757

(484,726)

133,400

504,472

637,872

$ 5,196 18,260 68,204

9,922 45,449

147,031

(9,720)

57,969 10,752

(19,798) (79,960)

(40,757)

106,274

13,400

74,472

87,872

10,500 (41,000) 153,146 194,146

215,731 215,731 215.731

$ 226.231 $ 174,731 $ 368,877 $194,146

38

TOWN OF SUNSET, LOUISLVNA

Sales Tax Special Revenue Fund

Budgetary Comparison Schedule


Revenues:

Taxes

Miscellaneous - interest

Total revenues

Expenditures:

Current -

General govemment:

Sales tax collection fees

Miscellaneous

Total expenditures

Excess of revenues

over expenditures

Other fmancing uses:

Transfer to General Fund

Net change in fund balance

Fund balance, beginning

Fund balance, ending

Budget

Original

$447,000

447.000

Final

$503,000

503,000

Actual

$498,358 398

498,756

Variance with

Final Budget

Positive

(Negative)

$ (4,642) 398

(4,244)

2,000

1,000

3,000

2.000

LOOO

4,917

21

3,000 4,938

444,000 500,000 493,818

(2.917)

979

(U938)

(6,182)

(384,000) (430,000) (504,472) (74,472)

60,000 70,000 (10,654) (80,654)

81,630 81,630 81,630

$141,630 $151,630 $ 70,976 $(80.654)

39

OTHER SUPPLEMENTARY INFORMATION

40


Budgetary Comparison Schedule - Revenues For the Year Ended June 30, 2010

Taxes: Ad valorem taxes Franchise - electric Franchise - telephone Franchise - cable

Licenses and permits: Licenses Building permits House moving and plumbing permits

Intergovemmental: State of Louisiana-

Racino revenue Beer taxes Fire insurance rebate Grass cutting State grant St. Landry parish solid waste district

Federal Housing Authority

Fines and forfeits:

Fines and court costs

Miscellaneous: Insurance reimbursement First response donations Miscellaneous

Total revenues

Budget Original

$100,000 150,000

5,000 3,000

258,000

88,000 3,000 -

91,000

45,000 5,000 9,000 7,000 -

--

5,000

71,000

255,000

25,000 3,000

25,000

53,000

$728,000

Final

$108,000 120,000

5,000 2,000

235.000

90.000 4,000

-

94,000

40,000 6,000 9,000 7,000

26,000 --

22,000

110,000

164,000

30.000 3.000

26,000

59,000

$662,000

Actual

$109,748 123,832

5,054 1,562

240,196

107,907 4.233

120

112.260

44.565 6.687 8.126 6,792 9,630 3,850

98,554 -

178,204

173,922

8,260 3,518

92,671

104,449

$809,031


Positive (Negative)

$ 1,748 3,832

54 (438)

5.196

17.907 233 120

18,260

4,565 687

(874) (208)

(16.370) 3,850

98,554 (22,000)

68,204

9,922

(21,740) 518

66,671

45,449

$ 147.031

41

TOWN OF SUNSET, LOUISIANA General Fund

Budgetary Comparison Schedule - Expenditures For the Year Ended June 30, 2010

General govemment: Salaries - mayor and council Other salaries Payroll taxes Retirement Office supplies and postage Insurance Telephone and electricity Travel, seminars, and conventions Advertising, dues, and publications Repairs and maintenance Preparation of tax roll Consulting Legal and accounting Coroner's expense Miscellaneous

Total general govemment

Public safety: Police department -

Salaries Payroll taxes Retirement Office supplies and postage Uniforms Materials and repairs Insurance Telephone and electricity Prisoner meals Auto Miscellaneous Gasoline Crime lab Dmg testing Conventions and conferences

Total police department

Budget Original

$ 45.000 95,000

8,000 10,000 17,000 60.000 13.000 9.000 4.000 4,000 3,000 2.000

34.000 2,000

12,000

318,000

335,000 26,000 4,000

14,000 2,000 8,000

90,000 11,000 2,000 8,000 5,000

18.000 3,000 2.000 3,000

531,000

Final

$41,000 109,000

8,000 10,000 18,000 68,000 20,000 16,000 8,000

14,000 2,000 -

29.000 2,000

15,000

360,000

397,000 34,000 4.000

15,000 1,000 6,000

115,000 9,000 1,000 8,000 6,000

17,000 2,000 2,000 1,000

618,000

Actual

$ 40,800 100,379

3.918 13.770 23.047 78,733 11,351 15,343 12.647 2.718 1.993 -

29,361 400

35,260

369,720

393.673 38.937 2,569

17.510 663

1.832 61.592

7,333 617

8.115 8,789

14,791 1,550 1,280

780

560.031


Positive (Negative)

$ 200 8,621 4,082

(3,770) (5.047)

(10,733) 8,649

657 (4,647) 11.282

7 -(361)

1,600 (20,260)

(9,720)

3,327 (4.937) 1,431

(2,510) 337

4,168 53.408

1,667 383

(115) (2.789) 2,209

450 720 220

57,969

(continued)

42

TOWN OF SUNSET. LOUISIANA General Fund

Budgetary Comparison Schedule - Expenditures (Continued) For the Year Ended June 30. 2010

Public safety: Fire department -

Salaries Payroll taxes Supplies and repairs Auto Office expense Insurance Telephone and electricity Miscellaneous Gasoline

Total fire department

Streets: Salaries Payroll taxes Retirement Materials and supplies Uniforms Repairs and maintenance Miscellaneous Shell, gravel, dirt and hot mix Electricity Contract labor Grass cutting Insurance Tractor and backhoe Gasoline and diesel Animal control Welding Station Tmck

Total streets

Budget Original

2,392 208

5,400 3.000 -

24,000 5,000 2,000 1,500

Final

6,440 560

2,000 1.000 -

22,000 5,000 2,000 1,000

Actual

7,827 581

2,120 969 184

9,608 5,248 2,255

456


Positive (Negative)

(1,387) (21)

(120) 31

(184) 12,392

(248) (255) 544

43,500

50,000 4,000 4,000 5,000 2,000

10,000 5.000 6,000

42,000

45.000 10.000 15.000 2.000

200,000

40,000

38,000 3,000 4,000 7,000

5,000 3,000 9,000

40,000 4.000

46.000 3.000

11.000 1.000

29,248

72,565 8,617 6,474 6,769

214 3.039 1,189 7,563

31,709 3,849

310 37,673

3,262 3,933

123 530

5,022 957

174,000 193,798

10,752

(34,565) (5,617) (2,474)

231 (214)

1,961 1.811 1,437 8,291

151 (310)

8,327 (262)

7,067 877

(530) (5,022)

(957) (19,798)

(continued)

43


Budgetary Comparison Schedule - Expenditures (Continued) For the Year Ended June 30,2010

Capital outlay: General govemment -

Buildings Public safety -

Police - equipment Street department

Total capital outlay

Total expenditures

Budget Original Final

15,000 84,000

37,000

24,000

99,000 61,000

Actual

114,484

26,476

140,960


Positive (Negative)

(77,484)

(2.476)

(79,960)

$1,191,500 $1,253,000 $1,293,757 $ (40,757)

44

TOWN OF SUNSET, LOUISLVNA Enterprise Fund

Utility Fund

Departmental Analysis of Revenues and Expenses For the Year Ended June 30, 2010

Total Gas Water Sewer Operating revenues:

Customer service charges Miscellaneous

Total operating revenues

Operating expenses: Salaries Payroll taxes Retirement Gas purchases Maintenance and repairs Telephone and electricity Legal and accounting fees Engineering fees Insurance Office expense Auto expense Supplies and parts Meter reading expense Survey and analysis Depreciation Miscellaneous


Operating income (loss)



Income before contributions and transfers

Transfers out



Net assets, ending

$ 648.797 28.442

677.239

75.290 2,755

10,394 101,888 49,433 47,158

1,560 9,072

46,395 10.580 11.100 52.689 18.428 10.545 92,514 34,093

573,894

103,345

581 (6,480)

(5,899)

97,446

(133,400)

(35,954)

981,330

$ 945,376

$283,934 3,650

287,584

26,401 1,485 1,869

101,888 29,712

304 112

-

3,362 3,397 1,274 9,805 8,426 5,625

12,542 8,615

214.817

$ 72.767

$221,319 20.633

241,952

24.348 574

4.760 -

1,678 28,478

-

8,291 34,383

7,183 3,110

34,478 10,002 1,500

42,115 21.788

222,688

$ 19,264

$143,544 4.159

147.703

24,541 696

3,765 -

18,043 18,376 1,448

781 8,650 -

6,716 8,406 -

3,420 37,857 3,690

136,389

$ 11,314

45

TOWN OF SUNSET, LOUISLVNA

Comparative Statement of Revenues. Expenses, and Changes in Fund Net Assets Proprietary Fund

For the Years Ended June 30, 2010 and 2009

2010 2009 Operating revenues:

Charges for services -Gas sales Water sales Sewer charges

Miscellaneous

Total operating revenues

Operating expenses: Gas department Water department Sewer department


Operating income



Income before transfers

Transfers out


$ 283,934

221,319

143,544

28,442

677,239

214,817

222,688

136,389

573,894

103,345

581 (6,480)

(5,899)

97,446

(133,400)

$ 263,095

208,274

136,510

41,344

649,223

229,221

200,694

194,281

624,196

25,027

780 (7,703)

(6.923)

18.104

(93,297)

(35.954) (75,193)


Net assets, ending

981,330 1.056,523

$ 945.376 $ 981,330

46

TOWN OF SUNSET, LOUISIANA Enterprise Fund

Utility Fund

Schedule ofNumber of Utility Customers (Unaudited)

June 30, 2010

Records maintained by the Tovm indicated the following number of customers were being serviced during the month of June 2010:

Number of Customers Type Gas Water Sewer

Commercial 23 62 33 Residential 410 1,093 959

47

TOWN OF SUNSET, LOUISIANA Enterprise Fund

Utility Fund

Schedule of Utility Rates (Unaudited)

June 30, 2010

Records maintained by the Town indicated the following utility rates were being charged to customers during the fiscal year ended June 30,2010:

Service

Water Sewer - commercial Sewer - residential Gas

Base Rate

$10,0-2000 gallons $10, 0-3000 gallons $6.50, 0-2000 gallons $11.88, 0-500 cubic feet

Additional Charges

.14 cents per gallon thereafter $1.25 per 1000 gallons thereafter $1.25 per 1000 gallons thereafter $1.25 per cubic feet thereafter

Note: Commercial and residential rates were the same for water and gas.

48

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INTERNAL CONTROL

AND

COMPLLVNCE

51

C, Bunon Kolder. CPA* Rimdl F. ChimptgM. CPA* Vicior R. SItven, (H'A* P. Troy Courville, CPA' GOTW A. TTiibodem*. Jr.CPA* Roben S- Caner, CPA* Anhur R Mixon, CPA*

TyneiE Mixon. Jr., CPA Alien J, LaBry. CPA Albwt R. Leger. CPA.PFS.CSA* Penny Angollo ScnJ0S»n8. CPA Christirw L Cousin. CPA Mary T. Thitxxteaux, CPA Marahall W. GiicJry. CPA Alan M. Teytor. CPA Jameo R. Roy, CPA RObett J. Metz, CPA KoJIy M. Doocel. CPA Cheryt L. Bartley. CPA Mandy B Self, CPA Paul L Delcambre. Jr. CPA Wanda F. Arcement. CPA, CVA Kristin B. Dauzat. CPA Richard R. Anderson ST., CPA Carofyn C. Anderson. CPA

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

Retired: Conrad 0. Chapman, CPA' 2006 Harry J. Clostio. CPA 2007

* A Pnrfnsional Accoufttbig CorporaUon

OFFICES

183SotithBe8dteRd. Lafayette. LA 70508 Phooe (337) 232-4141 Fax (337) 232-B660

113 East BrrdQeSL Breaux Bridge. LA 70517 Phone (337) 332-4020 Fax (337) 332-2867

1234 David Dr. Ste 203 (*»roan City. LA 70380 Phone (965) 364-2020 Fax (965) 384-3020

408 Wast Cotton Street ViDe Platte. LA 70586 Phooe (337) 363-2792 Fax (337) 363-3049

332 West Sixth Avenue Oberlffi. LA 70655 Phooe (337) 639-4737 Fax(337)i

450 East htoin Street New ttwrta, LA 70560

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

200 South Main Street Abbeville. U 70510

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

1013 Main Street Franklin, LA 70538

Phone (337) 8 2 6 ^ 7 2 Fax (337) 826-0290

133 East WadcflSL htertwviile LA 71351

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

621 Main Street Pneville, LA 71360

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

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCL\L STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

WEBsrrt www, KCSRCPAS.COM

The Honorable Cecil Lavergne, Mayor and Members ofthe Board of Aldermen

Town of Sunset, Louisiana

We have audited the fmancial statements of the govemmental activities, the business-type activities, each major fund, and the aggregate remainmg fund information ofthe TOVVTI of Sunset, Louisiana (the Town) as of and for the year ended June 30, 2010, which collectively comprise the Town's basic financial statements and have issued our report thereon dated November 9, 2010. 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 Govemment Auditing Standards issued by the Comptroller General ofthe United States.

Intemal Control Over Financial Reporting

In planning and perfonning our audit, we considered the Town's intemal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's intemal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Town's intemal control over financial reporting.

A deficiency in intemal 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 ofthe entity's financial statements will not be prevented, or detected and corrected on a timely basis.

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

Member of. AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 52

Member of: SOCIETY OF LOUISIANA


http://KCSRCPAS.COM

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Town'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 statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Govemment Auditing Standards.

This report is intended solely for the mformation of management and is not intended to be and should not be used by anyone other than these specified parties. However, under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.

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

Lafayette, Louisiana November 9,2010

53

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