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VILtAGE OF \ A I CHEZ ANMAL FfNANCIAL REPORT
JUNE 30, 2010
Uncsrprovisions of sta:e law. this report is a puDJic documen-L.Acopyo the report has been submitted to the entity and other appropriate public officiais. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, vi/here appropriate, at the office of the parish clerk of court.
Release Date N O V 0 2 2011
Village of Natchez Financial Report
June 30, 2010
T A B L E O F C O N T E N T S
Exhibit Page
Independent Accountant's Review Report - 1-2
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Assets A 5
Starement of Activities B 6
Fund Financial Statements
Governmental Funds
Balance Sheet-Governmental Funds C 8
Reconciliation ofthe Govemmental Funds Balance Sheet to the Statement of Net Assets D 9
Statement of Revenues, Expenditures and Changes in Fund Balances E 10
Reconciliation ofthe Statement of Revenues, Expenditures and Changes in Fund Balances ofthe Governmental Funds to the Statement of Activities F 11
Proprietary Funds
Statement of Net Assets G 12
Statement of Revenues, Expenses, and Changes in Net Assets H 13
Statement of Cash Flows I 14
Notes to Financial Statements - 16-24
Other Required Supplementary Information
Budgetary Comparison Schedule-General Fund J-i 26 Budgetary Comparison Schedule-LCDBG Fund J-2 . 27
Village of Natchez Financial Report June 30, 2010
T A B L E OF C O N T E N T S (cont'd)
Exhibit Paue Supplementary Information
Independent , ccountant s Report on Applying Agi-eed-Upon Procedures
l..ouisiana Attestation Questionnaire
Management Letter
Management's Response
Status of Prior Year Finding
K
L
M
N
0
28-30
31-32
33
34
35
Johnson, Thomas & Cunningham ('ertiiied Public AtxxnintaiUs
Rcktic G. Johnson. Cf'A - A Professional Coiporation (1927-1996)
Mark D. Thomas, CP.A - A Professional Corporation Roger M. Cii[inint;hani, CI*A - A Professional Coiporation Jessica II. Broadway. CI'A - A Professional Ciorporaiioii Rvan IZ. Todtenbier. CPA - A Professional Coiporation
321 Bienville Street Naichiiochcs. Louisiana 71457
(318)352-3652 l-a.s(318)352-;447
INDEPENDEN r ACCOUNTANT'S REVIEW REPORT
Mayor and Board of Aldennen Village of Natchez P. O. Box 2229 Natchez, LA 71456
We have reviewed the accompanying financial statements of the govenunental activities, the business-type activities, major fund, and the aggregate remaining fund information ofthe Village of Natchez as of and for the year ended June 30, 2010, which collectively comprise the Village's basic financial statements as listed in the Table of Contents. A review includes primarily applying analytical procedures to management's financial data and making inquiries ofthe Village's personnel. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation ofthe financial statements.
Our responsibility is to conduct the review in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. Those standards require us to pciTonii procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements. We believe that the results of our procedures provide a reasonable basis for our report.
Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in confomiity with accounting principles generally accepted in the United States of America.
.Members of AICPA Governmental .Audit Quality Center
Members ofAlCPA Members of Society of Louisiana CPA's
Page 2
Our review was made for the puipose of expressing a conclusion that there are no material modifications that should be made to tlie fmancial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. The budgetary comparison information on page 26 is presented only for purposes of additional analysis and is not a required part of the basic financial statements but is supplementary infomiation required by the Governmental Accounting Standards Board. The infonnation included in the budgetary comparison has been subjected to the inquiry and analytical procedures applied in the review of the basic financial statements, and we are not aware of any material modifications that should be made thereto.
The Village of Natchez has not presented the Management's Discussion and Analysis that the Governmental Accounting Standards Board has determined is necessary to supplement, although not required to be part ofthe basic financial statements.
In accordance with the Louisiana Governmental Audit Guide and the provisions of state law, we have issued a report dated October 7, 2011, on the results of our agreed-upon procedures on page 28 through 30. Pages 31 through 32 present the Louisiana Attestation Questionnaire.
^C ifUKUt, ni,04Ha^ & CuHHJH' A^UK Johnson, Thomas & Cunningham, CPA's
October 7, 2011 Natchitoches, LA 71457
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Village of Natchez Statement of Net Assets
June 30, 2010
Exhibit A Page 5
ASSETS: Current Assets-
Cash & Cash Equivalents Accounts Receivable (net) Due from Sewer Fund Deposits
Total Cunent Assets
Noncurrent Assets-Capital Assets (net)
Total Assets
Governmental Activities
$ 3.797 634
12,350 50
$16,831
39.455
556,286
Business-Type Activities
$ 379 3,219
0 0
S 3,598
1,128.155
SL13L753
Total
S 4,176 3.853
12,350 50
$ 20,429.
1,167,610
SL188.039
LIABILITIES: Cunent Liabilities-
Accounts Payable Payroll Liabilities Due to General Fund
; 18,023 4,098
0
S 2,098 2,652
12,350
$ 20,121 6,750
12,350
Total Liabilities S22,121 $ 17,100 $ 39,221
ET ASSETS: Invested in Capital A.ssets, Net of Related Debt
Unrestricted (Deficit) $39,455
(5,290) $1,128,155
f 13,502) $1,167,610
(18,792)
Total Net Assets $34.165 SLl 14.653 $U4LMS
See accompanying notes and independent accountant's review report.
VillageofNaiche-;
Statement of Aciiviiies
June 30, 2010
L.\hibil li
Pa ye 6
Activiiies IZ.xpcnses
Program Revenues Net (R.\pcnse) Revenue
and C!hanLies in Net Assets ("haruL'S Operating Cranls Capilal Grants
for and and Ciovernmcnt I3usiness-Type
Services Conuilnitions Coniributions .'\ctivitics Aciiviiies Tota
Governmental Activities: General Government S31M58 S3 7.821 5242,045 SO S(3(o92j 0 S (36,592)
Business-I'ype .Aciiviiies:
Sewer
lota! Government
114.193 54.101
S4JQ,651 S H ^ Z S242M5.
Ciencral Revenues, 'faxes Interest Oilier
fotal General Revenues
Change in Net Assets
.Net .Assets July 1.2009
Net As.sets June 30, 2010
SU
(60,092) (60,092)
Sn 6.592) S (60.092) $_m.(iM)
S 12,702
22
J^JJB
5 22,518
$( 14.074)
48,239
.SJi4J.65
5
-
S
s
.1
0
22
85
107
(59.985)
J 74.638
SiaL4.653
S
-
5.
S
J
12,702
44
9,879
22.625
(74,059J
,222.877
SI.I48.SI8
See aeeompiMiying nOles and indcpcndeni aceoumanls review report.
FUND FINANCIAL S f ATEMENTS
Exhibit C Paiie 8
ASSETS:
Cash & Cash Equivalents Accounts Receivable Due from Sewer Fund Deposit
Total Assets
LIABILITIES:
Village of Natchez Balance Sheet-Governmental Funds
.Iune30, 2010
Mai or Funds General LCDBG
Fund Fund
$ 3,797 $0 634 0
12,350 0 50 0
S16.S11 SQ
Total Governmental
Funds
S3,797 634
12,350 50
SI 6.831
Accounts Payable Payroll Liabilities
$18,023 4.098
$0 0
SI 8,023 4,098
Total Liabilities
FUND BALANCE:
Unreserved
Total Liabilities and Fund Balance
S22,121
$ (5,290)
$16,831
$0
SO
$2
$22,121
S (5.290)
S16.831
See accompanying notes and independent accountant's review report.
Exhibit D Pa^c 9
Village of Natchez Reconciliation ofthe Governmental Fund
Balance Sheet to the Statement of Net Assets June 30, 2010
Total Fund Balance for the Governiiienlal Fund at June 30. 2010 S (5,290)
Total Net Assets reported for Governmental Activities in the Statement of Net Assets is different because:
Capital Assets used in Govemmental Activities are not financial resources and, therefore, are not reported in the fund. Those assets consist of:
Land, Equipment, Buildings, and Vehicles 84,779 Less: Accumulated Depreciation (45,324)
Total Net Assets of Govemmental Activities at June 30, 2010 S 34.165
See accompanying notes and independent accountant's review report.
Exhibit E Page 10
Village of Natchez Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 2010
Revenues: Taxes-
Ad Valorem Sales Tax
Liccn.ses &. Permits Franchise Fee Fines Intergovernmental -
State Grant Beer Tax
Miscellaneous-Interest Other
"fotal Revenues
Expenditures: General Government Debt Service
Total Expenditures
(Deficiency) of Revenues over Expenditures
Fund Balance-Beginning of Year
Fund Balance-End of Year
Mai or General
Fund
$ 3,420 9,282
920 10,365 26,323
0 213
22 9,171
S59,716
S64,698 2,532
$67,230
$(7,514)
2.224
s_(5.22fi)
Funds LCDBG
Fund
$ 0 0 0 0 0
242,045 0
0 97
$242,142
$242,142 0
$242,142
S 0
0
S _ _ Q
Tolal Govemmental
Funds
S 3,420 9,282
920 10,365 26,323
242,045 213
22 9,268
$301,858
$306,840 2.532
$309,372
S (7,514)
2,224
$_£5.290)
See accompanying notes and independent accountant's review report.
Exhibit F Page 11
Village of Natchez Reconciliation ofthe Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Fund
to the Statement of Activities for the Year Ended June 30, 2010
Total Net Change in Fund Balance at June 30, 2010. per Statement of Revenues, Expenditures and Changes in Fund Balance $ (7,514)
The Change in Net Assets reported for Govemmental Activities in the Statement of Activities is different because:
Repayment of debt principal is an expenditure in the governmental fund, but the repayment reduces long-temi liabilities in the Statement of Net Assets 3,058
Depreciation Expense is reported in the government-wide Statement of Activities, but does not require the use of current financial resources. Therefore, depreciation expense is not reported as an expenditure in the governmental funds. Current year depreciation expense is (9,618)
Total changes in Net Assets at June 30, 2010, per Statement of Activities S( 14.074)
See accompanying notes and independent accountant's review report.
Village of Natchez Statement of Net Assets
Proprietary Fund Year Ended June 30, 2010
Exhibit G Pase 12
ASSETS: Current Assets:
Cash & Cash Equivalents Accounts Receivable Less, Allowance for Doubtful Accounts
Total Current Assets
Noncurrent Assets: Capital Assets-
Land Other Capital Assets, net of depreciation
Total Noncurrent Assets
Total Assets
LIABILITIES: Current Liabilities:
Accounts Payable Payroll Liabilities Due to General Fund
Total Liabilities
NET ASSETS: Invested in Capital Assets, net of related debt Unrestricted
Total Net Assets
$ 379 24,535
(21,316)
$ 3,598
S 9,196 1,118,959
$1,128,155
$1.131,753
S 2,098 2,652
12.350
$ 17T00
$1,128,155 (13,502)
$1J_14.653
See accompanying notes and independent accountant's review report.
Village of Natchez Statement of Revenues, Expenses, and Changes in Net Assets
Proprietary Fund For the Year Ended June 30, 2010
Exhibit H Page 13
OPERATING REVENUES: Charges for Scr\'ices
OPERA'f ING EXPENSES: Depreciation Personnel Utilities/Telephone Repairs & Maintenance Supplies Dues &: Licenses Bad Debt Expense Other
Total Operating Expenses
Operating Income (Loss)
OTHER REVENUES AND EXPENSES: Interest Income Miscellaneous Income
Total Other Revenues
Change in Net Assets
Net Assets-Beginning of Year
Net Assets-End of Year
$
$
$
s
$
$
S
54,101
52,316 24,675 17,258 6,012 1,918 1,722 8,529 L763
114,193
(60.092)
22 85
107
(59,985)
LI 74,638
$1.LL4.653
See accompanying notes and independent accountant's review report.
Village of Natchez Statement of Cash Flows
Proprietary Fund June 30, 2010
Exhibit I Page 14
Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid to employees
Net Cash Provided (Used) by Operating Activities
Cash Flows from Noncapital Financing Activities: Other income
Cash Flows from Investing Activities: Interest Income
Net Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Business Type Activities
$57,158 (35,826) (23.167)
S (LS351
S 85
22
RECONCILIATION OF INCOME FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Income (Loss) from Operations
ADJUSTMENTS TO RECONCILE INCOME FROM OPERATIONS TO NEF CASH PROVIDED (USED) BY OPERATING ACTIVI TIES: Depreciation Changes in Assets and Liabilities-
(Increasc) Decrease in Net Accounts Receivable Increase (Decrease) in Accounts Payable Increase (Decrease) in Payroll Liabilities
Net Cash Provided by (Operating Activities
S(60,092)
52,316
3,057 1,376 1,508
$_(I..B15)
See accompanying notes and independent accountant's review report.
NOTES TO FINANCIAL STAfEMENTS
Paue 16
Village of Natchez Notes to Financial Statements
Jiuie30, 2010
Introduction:
The Village of Natchez, Louisiana was incorporated under the provisions ofthe Lawrason act. The Village operates under an elected Mayor-Board of Aldermen fomi of govemment and provides the following services as authorized by its charter: public safety (police), street, sanitation, public utilities and general administrative services.
I. Summary of Significant Accounting Policies:
A. REPORTING ENTITY-
Thc Village is the basic level of government which has financial accountability and control over all activities related to the Village operations and services provided. The Village is not included in any other governmental ''reporting entity" as de/ined by GASB pronouncements, since the Village Mayor and Board of Aldermen are elected by the public and have decision making authority to levy taxes, the power to designate managemenl, the ability to significantly influence operations and primary accountability for fiscal matters. In addition, there are no component units as defined in Governmental Accounting Standards Board Statement 14. which are included in the Village's reporting entity.
The financial statements of the Village of Natchez, Louisiana are prepared in accordance with generally accepted accounting principles (GAAP). The Village of Natchez's reporting entity applies all relevant Govemmental Accounting Standards Board (GASB) pronouncements. Proprietary funds apply Financial Acct)unting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989, unless the pronouncements conflict with or contradict GASB pronouncements, in which case GASB prevails.
B. BASIS OF PRESENTATION-
Govemment-Wide Financial Statements (GWFS)
The Statement of Net Assets and Statement of Activities report information about the reporting govemment as a whole. They include all funds of the reporting entity. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange revenues.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the Village's govemmental activities. Direct expenses are those that are specifically associated with a program or function. Program revenues include (a) fees and charges paid by the recipient for goods or services offered by the program, and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that arc not classified as program revenues, including all taxes, are presented as eeneral revenues.
Paue I 7
Village of Natchez. Notes to Financial Stalomcnls
June 30. 2010
C. FUNDACCOLINIING-
The accounts ofthe Village are organized 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 maintained is consistent with legal and managerial requirements.
The Village maintains three funds. Two are categorized as govermnental funds and one as a proprietary fund. The emphasis on fund financial statements is on major governmental and enterprise funds; each displayed in a separate column. A fund is considered major if it is the primary operating fund ofthe entity or meets the following criteria:
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent ofthe corresponding total for all funds of that category or type; and
b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined.
The Village considers all funds to be major:
Governmental Fund-
(jcneral Fund
The General Fund is-thc general operating fimd of the Village. It is used to account for all financial resources except those required to be accounted for in another fimd.
LCDBG Fund
To account for all financial resources received for the LCDBG Street Program.
Proprietary Fund-
Enteiprise_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 governing 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 tlirough user charges; or (b)
Page 18
Village of Natchez Notes to Financial Statements
June 30, 2010
where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Village's enterprise fund is the Sewer Fund.
D. MEASUREMENT FOCUS/BASIS OF ACCOUTsITING-
Basis of accounting refers to when revenues or expenditures/expenses are recognized in the accounts and reported in the financial statements. It relates to the timing of the measurements made regardless ofthe measurement focus applied.
Accmal Basis - Govemment-Wide Financial Statements (GWFS)
The Statement of Net Assets and the Statement of Activities display information about the Village as a whole. Both of these statements have been prepared using the economic measurement focus and the accrual basis of accounting. Revenues, expenses, gains, los.ses, assets, and liabilities resuUing from exchange and exchange-like transactions are recognized when the exchange takes place.
Modified Accmal Basis - Fund Financial Statements (FFS)
The accounting and financial reporting treatment applied to a fund is detemiined by its measurement focus. Govemmental fund types use the flow of current financial resources measurement fi)cus and the modified accmal basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accmal; i.e., when they are both measurable and available. "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The Village considers all revenues "available" if they are collected within 60 days after year-end. Expenditures are generally recorded under the modified accmal basis of accounting when the related liability is incurred. The exceptions to this general mle are that (I) unmatured principal and interest on long-tenn debt, if any, are recorded when due and (2) claims and judgments and compensated absences are recorded as expenditures when paid with expendable available financial resources.
E. CASH AND INTEREST-BEARING DEPOSITS-
For purposes of the Statement of Net Assets, cash and interest-bearing deposits include all demand accounts, savings accounts, and certificates of deposit ofthe Village.
P-diic 19
Village of Natchez Notes to Financial Statements
June 30. 2010
F. CAPITAL ASSETS-
Capital assets, which include property, plant, and equipment, are reported in the governmental activities column in the govemment-wide financial statements. Capital assets are capitalized at historical cost or estimated cost if historical cost is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The Village maintains a threshold level of $500 or more for capitalizing capital assets.
The costs of normal maintenance and repairs that do not add to the value of that asset or materially extend the life of that asset are not capitalized.
Depreciation of all exhaustible capital assets is recorded as an 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 useful lives by type of asset is as follows;
Buildings and improvements 40 years Equipment and vehicles 3-10 years Utility system and improvements 10-50 years
In the fimd financial statements, capital assets used in govemmental fund operations are accounted for as capital outlay expenditures ofthe governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government-wide statements.
G. COMPENSATED ABSENCES-
'fhe vested or accumulated vacation leave ofthe Village's employees has not been recorded. The amount of accumulated benefits in excess of one year's normal amount would be immaterial. Unused vacation time lapses at the end of each calendar year.
In accordance with the provisions of Slatemeni of Financial Accounting Standards No. 43, Accounting for Compensated Absences, no liability is recorded for non-vesting accumulating rights to receive sick pay benefits.
H. 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 accumuiated 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.
Page 20
Village of Natchez Notes to Financial Statements
June 30, 2010
b. Restricted net assets—Consists of net assets with constraints placed on their use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other govemments; or (2) law tluough constitutional provision 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 debf \
In the fund statements, governmental fund equity is classified as fund balance. Fund balance is further classified as reser\'cd and unreser\^ed, with unreserved fiirther split between designated and undesignated.
I. ESTl.MATES-
Thc preparation of financial statements in confomiity with accounting principles generally accepted in the United States of America, require 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 financial statement and the reported amounts of revenue, expenditures, and expenses during the reporting period. Actual results could differ from those estimates.
J. OPERATING REVENUES AND EXPENSES-
Operating revenues and expenses for proprietary funds are those that result from providing sei-vices and producing and delivering goods an(d/or services. It also includes all revenue and expenses not related to capital and related financing noncapital financing, or investing activities.
K. EXPENDITURES/EXPENSES-
In the govemment-wide financial statements, expenses are classified by function for both govemmental and business-type activities.
In the fund financial statements, expenditures arc classified as follows:
Govemmental Funds - By Character Proprietary Fund - By Operating and Nonoperating
In the fund financial statements, govemmental funds report expenditures of financial resources. Proprietary fiands report expenses relating to use of economic resources.
L. BUDGET-
Prior to the beginning of each fiscal year, the Village adopts a budget for the next fiscal year. The budget is open for public inspection. All budgetary appropriations lapse at the end ofthe fiscal year. The budget is prepared on the modified accrual basis of accounting.
Page 21
Village of Natchez Notes to Financial Statements
June 30, 2010
.M. RWENTORIES-
Purchases of various operating supplies are regarded as expenditures at the time purchased and inventories of such supplies (if any) are not recorded as assets at the close ofthe fiscal year.
N. SHORT-TERM INTERFUND RECEIVABLES/PAYABLES-
During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "due fi'om other funds" or "due to other funds" on the balance sheet. Short-tcmi interfund loans are classified as "interfund rcceivablcs/payables".
O. BAD DEBTS AND ALLOWANCES-
Allowance for uncollectible amounts due for customers' utility receivables are recognized as bad debts at the time they become more than 90 days old. At June 30, 2010, this was $21,316.
2. Cash and Cash Equivalents:
For reporting purposes, cash and cash equivalents include demand deposits, savings accounts, and certificates of deposit. At June 30, 2010, the Village had cash and cash equivalents (collected bank balances) totaling $4,561. Cash and cash equivalents are stated at cost, which approximates market. Under Louisiana law, these deposits must be secured by federal deposit insurance or the pledge of securities owned by the bank. The market value of the pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the bank. These pledged securities are held in the name of the pledging bank in a holding or custodial bank in the fomi of safekeeping receipts held by the Village. The deposits at June 30, 2010, were fully secured by FDIC Insurance.
3. Property Taxes:
The Village levies taxes on real and business personal property located within its boundaries. Property taxes are levied by the Village on property values assessed by the Natchitoches Parish Tax Assessor and approved by the State of Louisiana Tax Commission.
Village property tax revenues are recognized when levied and are recorded as current receivables.
The property tax calendar is as follows:
Assessment Date January I
Levy Date June 1 Tax Bills Mailed November 15 Total Taxes are Due December 31 Penalties and Interest are Added January 1 Lien Date No Set Policy Tax Sale No Set Policy
Pa^e
Village of Natchez Notes to Financial Statements
June 30, 2010
Property taxes levied for the current year arc recognized as revenues, even though a portion is collectible in the period subsequent to the levy year. Assessed values are established by the Natchitoches Parish Tax Assessor each year on a uniform basis at the following percent of fair market value:
Land Residential Industrial Machinery Commercial Public Service (excluding land)
10% 10% 15%. 15%o 15% 25%
A reevaluation of all property is required to be completed no less than every four years. A reevaluation was completed for the tax roll of January 1, 2008.
Tax collections for the year were $3,420.
4. Capital Assets:
Capital asset activity for the year ended June 30, 2010, is as follows:
Govemmental Activifies
Land Office Furniture, Fixtures
& Equipment Vehicles
Tolal Costs
Less, Accumulated Depreciation Office Furniture, Fixtures
&, Equipment Vehicles
Balance 07-01-09
S 1,600
40,717 42.462
$84,779
Additions
$
$ _
0
0 0
0
Deletions
$0
0 0
$0
Balance 06-30-10
$ L600
40,717 42,462
$84,779
Total Accumulated Depreciation $35.706
Net Capital Assets
$17,303 18,403
$35,706
$4£^73
$1,166 8,452
$9,618
SIMIS.)
$0 0
SO
$Q
$18,469 26,855
$45,324
$39,455
Village of Natchez Notes to Financial Statements
June 30, 2010
Paee 23
Business-Type Activities
Capital Assets Not Depreciated Land
Capital Assets Depreciated Sewer System
Total Costs
Less, Accumulated Depreciation Sewer System
Net Capital Assets
Balance 07-01-09
$ 9,196
1.909.212
$1,918,408
$ 737,937
Sl.l 80.471
Additions
$ 0
0
S 0
$52,316
$(52,316)
Deletions
$0
0
SO
$0
SQ
Balance 06-30-10
$ 9,196
1,909,212
$1,918,408
$ 790,253
$1,128,155
Depreciation expense of $9,618 was charged to the general government function, and $52,316 was charged to the business-type activities.
5. Lone-Term Liabilities:
The Village had a note payable on the purcha.se of a new police car payable at $316.62 per month for 48 months. As of June 30, 2010, this note has been paid in full.
6. Compensation Paid to the Mayor and Board of Aldemien:
During 2010, the following amounts were paid to the Mayor and Board of Aldennen:
Rosia L. Humphries/ Mayor Edna Jones Gerald Johnson Henrietta Byrd
$4,675 764
1,699 764
Total %1J.02
7. Receivables:
The following is a summary of receivables at June 30, 2010, less allowance for uncollectibles;
Class of Receivable General Fund Proprietary Fund Total
Water & Sewer Sales S 0 Other 634
$3,219 0
$3,219 634
Total $624 $3,219 $3^52
Paee 24
Village of Natchez Notes to Financial Statements
June 30, 2010
8. Inierfimd Receivable and Pavable Balances:
Fund Interfund
Receivables
$12,350
0
512,350
Interfund Payables
$ 0
12,350
Si2,3.5Q
General Fund-Sewer System
Scwcr System-General Fund
Totals
9. Sales lax Revenue:
The voters of Natchez passed a one percent (1%) sales and use tax. The proceeds ofthe sales tax are to be used for any lawful corporate purpose.
10. Pension Plan:
All employees ofthe Village of Natchez, including police officers (other than elected officials) are covered under the Social Security System. The employees pay 7.65% of their total salaries into the system, while the Village pays in a like amount. Data concerning the actuarial status of this system is not available. Future deficits in this system will be financed by the Federal government and the Village has no further liability to the system.
11. Confiiment Liability:
The Village currently owes federal and state payroll taxes for the year ended June 30, 2010. The Internal Revenue Service aiid the Louisiana Department of Revenue have been contacted. The total amount of this liability cannot be detemiined at this time.
12. Subsequent Events:
Management has evaluated events through October 7, 2011, the date which the financial statements were available for issue. There were no items to be reported as subsequent events.
OTHER REQUIRED SUPPLEMENTARY INFORMATION
Village of Natchez General Finid
Bvidgeiary Comparison Schedule For the Year Ended June 30, 2010
EAhibitJ-l Paee 26
REVENUES: Taxes-
Ad Valorem Sales Tax
Licenses & Permits Franchise Fee Fines Intergovernmental-
State Beer Tax Miscellaneous-
Interest Other
Total Revenues
EXPENDITURES: General Government Debt Service
Total Expenditures
(Deficiency) of Revenues over Expenditures
Fund Balance-Beginning of Year
Fund Balance-End of Year
Budeet Orieinal/Final
$ 6.000 6,000 3.325 6,000 3.000
Actual
S 3,420 9.282
920 10,365 26,323
Variance Favorable
(Unfavorable)
$ (2,580) 3,282
(2,405) 4,365
23.323
77 213 136
1,000 2,137
S 27,539
$103,361 0
$103,361
S (75,822)
2.224
$ (73.,5J)8)
22 9,171
$59,716
$64,698 2,532
$67,230
$(7,514)
2.224
$.a?2Q)
(978) 7.034
$32,177
$38,663 (2,532)
536,131
$68,308
0
S68.3Q8
See independent accountant's review report.
Village of Natchez LCDBG Fund
Budgetary Comparison Schedule For the Year Ended June 30, 2010
Exhibit J-2 Page 27
REVENUES: LCDBG-State Other
Budget Orieinal/Final
$242,045 0
Actual
S242.045 97
Variance Favorable
(Unfavorable)
S 0 97
Total Revenues
EXPENDFTURES:
Streets
Excess of Revenues over Expenditures
Fund Balance-Beginning of Year
Fund Balance-End of Year
$242,045 $242,142 $97
242,045
; 0
0
; Q
242,
$
$
.142
0
0
= n
(97)
$ 0
0
$ J
Sec independent accountant's review report.
Jolinson, Thomas & Cuniiiughani Ceitiiied Public: AccoimlaiUs
Cddif <:>. -lotinson. C \ \ \ - A ProH'Ssioiu'sl Coiitontion (1927-1'>9&)
Mark I). Thnnus. CPA - A Prolcssioiial CorpuriHiun [<iig(_-i- M. Cunninghiini, CP.A - A Prod'ssional Cuqxnaiion Jessica i 1. Uttjadway. C:i'.'\ - A Professional Coiporation kyan U. Toiltenbior. C:PA - .A l*Rit'i.-ssional Coq.Knatioii
321 IJiciivillu Sired N'an:hiu')chc!j. Louisiana 71457
(318)352-3652 FnvCilXnS''-44-17
INDEPENDENT ACCOUN fANT^S REPORT ON APPLYING AGREED-LT»ON PROCEDURES
Mayor and Board of Aldemien Village of Natchez P. 0 . ^ 2 1 6 Natchez, LA 71016
We have perfomicd the procedures included in the Louisiana Governmental Audit Guide and enumerated below, which were agreed to by the management ofthe Village of Natchez and the Legislative Auditor, State of Louisiana, solely to assist the users in evaluating management's assertions about the Village of Natchez's compliance with certain laws and regulations during the year ended June 30, 2010, included in the Louisiana Attestation Questionnaire. This agreed-upon procedures engagement was performed in accordance with standards established by the American Institute of Certified Public Accountants and applicable standards of Government Auditing Standards. The sufficiency of these procedures is solely the responsibility ofthe specilied users ofthe 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.
PUBLIC BID LAW
1. Select all expenditures made during the year for materials and supplies exceeding $30,000, or public works exceeding $150,000, and determine whether such purchases were made in accordance with LSA-RS 38:2211-2251 (the public bid law).
No expenditures found to be in violation.
CODE OF ETI l i es FOR PUBLIC OFFICIALS AND PUBLIC EMPLOYEES
2. Obtain from management a list ofthe immediate fan^ily members of each board member as defmed by LSA-RS 42:1101-1124 (the code of ethics), and a list of outside business interests of all board members and employees, as well as their immediate families.
Management provided us with the required list including the noted information.
Members of AICPA GovL^mrnental .Auclii Quality Cenier
Mcnibcr-sot AICPA Members of Society of Louisiana CPA's
Exhibit K Paiie 29
3. Obtain from management a listing of all employees paid during the period under examination.
Management provided us with the required list.
4. Determine whether any of those employees included in the listing obtained from management in agreed-upon prt)cedures (3) were also included on the listing obtained from management in agreed-upon procedures (2) as immediate family members.
None found.
BUDGETINfG
5. Obtain a copy ofthe legally adopted budget and all amendments.
Management provided us with a copy ofthe original budget. There were no amendments during the year.
6. Trace the budget adoption to the minute book.
We traced the adoption ofthe original budget to the minute book.
7. Compai'e the revenues and expenditures of the final budget to actual revenues and expenditures to determine if actual revenues failed to meet budgeted revenues by 5% or more or if actual expenditures exceed budgeted amounts by 5% or more.
Both actual revenues and expenditures were within the 5% variance allowed.
ACCOUNTING AND REPORTING
8. Randomly select 6 disbursements made during the period under examination and:
(a) trace payments to supporting documentation as to proper amount and payee:
We examined supporting documentation for one of the six disbursements and found that the payment was for the proper amount and made to the correct payee. Documentation was not located for the other five disbursements.
(b) determine if payments were properly coded to the correct fund and general ledger account:
One disbursement appeared to be coded correctly. Documentation was not located for the other five disbursements.
(c) detemiine whether payments received approval from proper authorities:
Inspection of supporting documentation showed written approval for one disbursement. Documentation was not located for the other five disbursements.
Exhibit K. Paue 30
MEE'flNGS
9. Examine evidence indicating that agendas for meetings recorded in the minute book were posted or advertised as required by LSA-RS 42:1 through 42:12 (the open meetings law).
The Village is only required to post a notice of each meeting and the accompanying agenda on the door ofthe Village's office building. Management has asserted that such documents were properly posted.
DEB'f
10. Examine bank deposits for the period under examination and detennine whether any such deposits appear to be prt>ceeds of bank loans, bonds or any other indebtedness which have not been approved by the State Bond Commission.
We inspected copies of all bank deposits for the period under examination and noted no deposits that appeared to be proceeds of bank loans, bonds, or other indebtedness that had not been approved by the State Bond Commission.
AF^VANCES AND BONUSES
11. Examine payroll records and minutes for the year to determine whether any payments have been made to employees that may constitute bonuses, advances, or gifts.
None found.
Our prior report, dated July 6, 2010, did not contain any comments or unresolved matters.
We were not engaged to, and did not, perform an examination, the objective of which would be the expression of an opinion on management's assertions. Accordingly, we do not express such an opinion. Had wc 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 management ofthe Village of Natchez 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.
Johnson, Thomas & Cunningham, CPA's
October 7, 2011 Natchitoches, Louisiana
ViLLAfiFOI-NAlCilFZ
l.OLUSI.AXA AT i 1:STA IH JN 'Jl.'l-Sl iONNAlKF
John .Oil, liioiijiis !.*;.• Ciiiiiiiiiuliiiiri, CI'A's 321 Hicnville Street N;iu.iutoch.:s. LA Vl'Iti?
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Johnson, Thomas & Cunninghani Cerlilled PLil>lic Accoiiiitaiirs
[•ddicG. Johnson. CPA - A I'rofcssional Corporation (1927-1996)
Matk D. 'I'hnmas. CI'A •• A ProieH.sional Corporation Roger M. Cunninghani, CPA - A Prolession:il Coipoiation Jessica H. Broadway. CPA - A Professional Corporation Ryan li. 'lodtenbier, CPA - A Professional Corporation
321 Bienville Street Natchitoches. Louisiana 71457
(.^18)352-3652 hax(31S).j52-4447
October 7, 2011
Village of Natchez c/o iMayor Edna Jones P. O. Box 229 Natchez, LA 71456
RE: Management Letter Review Report - June 30, 2010
We have pcrfomied our review of the Village of Natchez for the year ended June 30, 2010, and have applied certain agreed-upon procedures. As part of these procedures, we have the following information to report to you.
1. Louisiana State Law requires that the annual report be subniilled to the Legislative Auditor within six months after the end of their fiscal year. For the year ended June 30, 2010, the Village did not provide the Village's books to the auditor in sufficient time to allow the report to be issued on time. We recommend the Village instimtc procedures to ensure that the books are available within 45 days after the end ofthe year.
2. Louisiana State Law requires that all documents used to support the receipt/expenditure of public funds be maintained for a period of five (5) years after the end ofthe fiscal year. For the year ended June 30, 2010, the Village was unable to provide proper documentation for either the receipts or the expenditures for the General Fund or Utility Fund. We recommend the Village contact other villages or accounting firms to determine the best procedures for the Village of Natchez to use to properly document both the collection and disbursement of public fiinds.
3. Louisiana State Law prohibits budgeted expenditures from exceeding the total of estimated funds available. For the year ended June 30, 2010, the Village had approved a budget for the General Fund in which budgeted expenditures exceeded the estimated available funds for the year. We recommend that the Village ensure that subsequent budgets comply with state law.
Sincerely,
Johnson. Thomas & Cunningham, CPA's
Members of AICPA Governmental Audit Qualitv Center
Members of AICPA Members of Society of Loiii.siana CPA's
Village of Natchez ' W o . iii>v229
N;itel ic/ , I.A "\4M>
rjciohtr?. 2GI
Loiiisi;iiia Lei!,i,';laiivL' Auditor 160(1 North Third Strvu Baton Kt-uijH-, 1 A '^PSO.':
KH; Njanayeinent Letter Review Report-June . O.. 20iO
Tlic fol'o'.sinL; i:-. our t^.^fion-ie '..> (he nuit!;tui;nn;ift letter j.-isiied lo us hv the (nni .lohn.'ion. rii'.inijs * . Cunnin^ii;nn. CP.A s for the ye.;: ended June ..'*,*, 2010:
.\lnna^emcnt'sCorrcciive_As'!..i.O.J.J...P.hn
L:i'.L- Kcpori - We uiM institLite procedure.-, to en-tne that the Dooks are ;tv:!ilable within •15 itHvs lifter the end ofthe year.
Lack of nocnnscnirttion • We will contaei other vilkijies or accoinitinj; linns to determine the t)e:U [liiiccdinvs tW di;; Vill.me ' i f Niitehe/. io n<.e to [voperly doennicin both the !.t.!llection uiid dishurseincnt of public fund-i.
IJuditet - We veil! ensure tluii the Vilhigc is in compliance with :?taie I.'iw uhen ap[)rijvit!ii,;iniendinii die budget.
Piense contact u. i f there are any t|nestions tetzardiii^ our lesptjnses.
Sincerelv. .--•,
• { ^ ' y ^ Z • ' ^ . 4 . 1 ^ ' ^ ^ - ' • ' - ' ^ ^^ ' Hdnti Jone;, Mayor ViMn-^- of Natchez,
Non-C'ompl i ancc-
09~0L Lata Report
Exhibit O Pa^c 35
Village of Natchez Schedule of Prior Year Finding
Year Lnded June 30, 2010 ^
Finding - Loinsiana stale laws requires that the Village have an annual audit performed and submitted to the Legislative Auditor within six (6) months after the clo.se of their fiscal year. For the year ended June 30, 2009, this requirement was not met.
Status - Repeat finding for June 30, 2010. See management letter.
