RECEIVED^

2083 JUK 16 AH 10-26

CADDO PARISH FIRE DISTRICT NO. 6KEITHVILLE, LOUISIANA

ANNUAL FINANCIAL REPORTDECEMBER 31,2007

Under provisions of state law, this report is a publicdocument. A copy of the report has been submitted tothe entity and other appropriate public officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.

Release Date

MARSHA O.M1LLICANCERTIFIED PUBLIC ACCOUNTANT

SHREVEPORT, LOUISIANA

CADDO PARISH FIRE DISTRICT NO. 6Keithville. LouisianaDecember 31,2007

TABLE OF CONTENTS

Page

Independent Auditor's Report 1-2

Management's Discussion and Analysis 3-8

Basic Financial Statements:

Government Wide Financial Statements

Statement of Net Assets 9

Statement of Activities 10

Fund Financial Statements

Balance Sheet - Governmental Funds 11

Reconciliation of Fund Balances on the Balance Sheetsfor Governmental Funds to Net Assets of GovernmentalActivities on the Statement of Net Assets 12

Statement of Revenues, Expenditures and Changes inFund Balances - Governmental Funds 13

Reconciliation of the Statement of Revenues, Expendituresand Changes in Fund Balances of Governmental Funds tothe Statement of Activities 14

Notes to Financial Statements 15-24

Required Supplementary Information:

Schedule of Budgetary/GAAP Reporting Reconciliation - General Fund 25

Schedule of Revenues, Expenditures and Changes in Fund Balances -Balances - Budget and Actual (Cash Basis) - General Fund 26

Independent Auditor's Report on Internal Control over Finanical Reportingand on Compliance and Other Matters Based on an Audit of FinancialStatements in Accordance with Governmental Auditing Standards 27-28

Corrective Action Taken on Prior Year Findings 29

Schedule of Findings and Questioned Costs 30

_ars

INDEPENDENT AUDITOR'S REPORT

To the Members of the Board of CommissionersCaddo Parish Fire District No. 6Keithville, Louisiana

I have audited the accompanying basic financial statements of CaddoParish Fire District No. 6, (the District) a component unit of the CaddoParish Commission, as of and for the year ended December 31, 2007, aslisted in the table of contents. These financial statements are theresponsibility of the Caddo Parish Fire District No. 6's management. Myresponsibility is to express an opinion on these basic financialstatements based on my audit.

I conducted my audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits contained in Governmental Auditing Standards, issued bythe Comptroller General of the United States. Those standards requirethat I plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit alsoincludes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. I believe that my audit provides a reasonablebasis for my opinion.

In my opinion, the financial statements referred to above present fairly,in all material respects the position of the District of December 31,2007 and the respective changes in financial position for year then endedin conformity with accounting principles generally accepted in the UnitedStates of America.

The management's discussion and analysis and budgetary comparisoninformation on pages 3 through 8 and 26 and 27, respectively, are not arequired part of the basic financial statements but are supplementaryinformation required by accounting principles generally accepted in theUnited States of America. I have applied certain limited procedures,which consisted principally of inquiries of management regarding themethods of measurement and presentation of the supplementary information.However, I did not audit the information and express no opinion on it.

i 8 1 o WILKINSON| SHREVEPORT, LA 71 1O4-3O36I ( 318 ) 221-3881

! FAX: (318) 221-4641

In accordance with Governmental Auditing Standards, I have alsoissued a report dated May 23, 2008, on my consideration of CaddoParish Fire District No. 4' s internal control over financialreporting and on my tests of its compliance with certain provisionsof laws, regulations, contracts, and grants. The purpose of thatreport is to describe the scope of my testing of internal controlover financial reporting and compliance and the results of thattesting, and not to provide an opinion on the internal control overfinancial reporting or on compliance. That report is an integralpart of an audit performed in accordance with Governmental AuditingStandards and should be read in conjunction with this report inconsidering the results of my audit.

Certified Public AccountantJune 5, 2008

CADDO PARISH FIRE DISTRICT NO. SIXP. O. BOX 292

KEITHVILLE, LA 71047PHONE #318-925-8791

FAX #318-925-8799FID#: 72-1037843

ROBERT GILL, BOARD CHAIRMANJERRY TAYLOR THOMAS WHITEJIMMY COUVILLION PAUL BISON

DAMON JOHNSON. Fire Chief

MANAGEMENT'S DISCUSSION AND ANALYSIS

This section of Caddo Parish Fire District No. 6's annual financial reportpresents our discussion and analysis of the District's financial performanceduring the fiscal year that ended on December 31, 2007. Please read it inconjunction with the District's financial statements, which follow this section.

FINANCIAL HIGHLIGHTS

The District had total net assets of $798,773 at year end which represents anincrease from the prior year of $1,824.

OVERVIEW OF THE FINANCIAL STATEMENTS

These financial statements consist of the following - Management's Discussion andAnalysis (this section), the basic financial statements, and notes to financialstatements. These components are described below:

Basic Financial Statements

This annual report consists of a series of financial statements. The Statementof Net Assets, Statement of Revenues, Expenses, and Changes in Net Assets andCash Flows provide information about the activities of the District as a wholeand present a longer-term view of the District's finances. These statementsinclude all assets and liabilities using the accrual basis of accounting, whichis similar to the accounting used by most private-sector companies. All of thecurrent year's revenues and expenses are taken into account regardless of whencash is received or paid.

The Statement of Net Assets and the Statement of Revenues, Expenses, and Changesin Net Assets report the District's net assets and changes in them. You canthink of the District's net assets, the difference between assets andliabilities, as one way to measure the District's financial health, or financialposition. Over time, increases or decreases in the District's net assets are oneindicator of whether its financial health is improving or deteriorating.

3

FINANCIAL ANALYSIS OF The ENTITY

Net Assets

Net assets may serve over time as a useful indicator of the District's financialposition. The District's assets exceeded liabilities by $798,773 as of December31, 2007.

The District's major assets are its fixed assets of $572,133 representing itsinvestment in capital assets such as land, buildings and improvements, equipmentand furniture, less the related debt used to acquire those assets that is stilloutstanding. The District owed $328108 at year end on the debt used to acquirethose assets that is still outstanding. The District uses these capital assetsto provide services to the citizens of the District; consequently, these assetsare not available for future spending. Revenues needed to repay the related debtwill be provided through tax assessments on property located within the District.

$381,274(48%) of the District's net assets is restricted for debt service. Thesefunds legally must be used to pay interest and principal on the outstandinggeneral obligation bonds.

Caddo Parish Fire District No. 6's Net AssetsDecember 31,

Current assetsCapital assetsTotal assets

Current liabilitiesNoncurrent liabilities

Total liabilities

Invested in capital assets, net of related debtRestricted for debt serviceUnrestricted

2007 2006

$ 621,831 $ 595,801572,133 645.686

1,193,964 1,241,487

67,083328,108395,191

244,025381,274173,474

14,262430,276444,538

215,410307,776273,799

Total net assets $ 798,773 $ 796,949

Changes in Net Assets

The District's net assets increased by $1,824 during the year ended December 31,2007. Approximately 47% (358,855) of the District's total revenue was derivedthrough property taxes, while approximately 43% ($330,003) was derived throughcharges for services (structure fees). Revenues were generally consistent withthe prior year. Expenses incurred by the District are primarily for theprovision of fire protection and emergency medical treatment to the citizens ofthe District. Approximately 40% ($312,128) of the District's expenses are forsalaries and related payroll taxes and employee benefits.

In 2007, activity program revenues exceeded program expenses, resulting in anincrease in net assets of $1,824.

Caddo Parish Fire District No. 6's Changes in Net AssetsFor the Year Ended December 31,

Revenues:Program revenues:Charges for servicesCapital grants and contributions

General revenues:Property taxesInterestIntergovernmentalMiscellaneous

Total revenues

Expenses:Public safety - fire protectionInterest on long-term debt

Total expenses

Increase(Decrease) in net assets

Net assets, beginning of year

Net assets, end of year

2007 2006

$ 330,003

358,85514,69061,18510,631

775,364

753,33520,205

$ 252,51843,502

349,20214,69848,44413,599

721,963

635,06326,537

773,

1,

796,

$798,

450

824

949

773

661,

60,

736,

$796,

600

363

586

949

FINANCIAL ANALYSIS OF THE DISTRICT'S INDIVIDUAL FUNDS

As noted earlier/ the District uses fund accounting to ensure and demonstratecompliance with finance-related legal requirements.

Governmental Funds

The focus of the District's governmental funds is to provide information on thenear-term inflows, outflows, and balances of spendable resources. Suchinformation is useful in assessing the District's financing requirements. Inparticular, unreserved fund balance may serve as a useful measure of theDistrict's net resources available for spending at the end of the year.

As of the end of the current year, the District's governmental funds reportedcombined ending fund balances of $554,748, an increase of $12,501 compared tothe prior year.

Of the combined ending fund balances, $173,474 or approximately 32%, isunreserved and available for spending in the coming year. The remainder of thefund balance is reserved to indicate that it is not available for new spendingbecause it has already been committed (1) to pay debt service, or (2) to purchasecapital assets.

The general fund is the chief operating fund of the District. As a measure ofthe general fund's liquidity, it may be useful to compare the unreserved fundbalance to total fund expenditures. The fund balance of the general funddecreased by $60,997 during 2007. This is approximately a 26% decrease from theprior year.

GENERAL FUND BUDGETARY HIGHLIGHTS

Formal budgetary integration is employed as a management control device duringthe fiscal year. The budget policy of the District complies with state law, asamended, and as set forth in Louisiana Revised Statutes Title 39, Chapter 9,Louisiana Local Government Budget Act (LSA - R.S. 39:1301 et seq.).

The District's budget was amended during 2007.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

The District's investment in capital assets for its governmental activities asof December 31, 2007, totaled $1,384,309 net of accumulated depreciation of$812,176, leaving a book value of $572,133. This investment in capital assetsincludes fire stations (land, buildings and improvements), fire trucks, emergencyresponse vehicles, fire fighting and rescue equipment, office equipment andfurniture (equipment and furniture).

Actual costs to purchase capital assets was $19,774 for the year. Depreciationcharges for the year totaled $93,327.

Debt Administration

The District's outstanding general obligation bond was issued on August 1, 2000in the original amount of $800,000. The obligation is secured by the ability ofthe District to levy property taxes to ensure payment of the debt and wasapproved by a vote of the citizens of the District.

Long-term debt general obligation bond debt decreased by $85,000, the amount ofthe annual principal maturity of the Series 2000 General Obligation Bond.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES

The following economic factors were considered when the budget for the fiscalyear ended December 31, 2008 was prepared.

• Revenues are expected to stay consistent for 2008.

REQUESTS FOR INFORMATION

This financial report is designed to provide a general overview of the financesof the Caddo Parish Fire District No. 6 for all of the District's citizens,taxpayers/ investors/ and creditors. This financial report seeks to demonstratethe District's accountability for the money it receives. Questions concerningany of the information provided in this report or requests for additionalinformation should be addressed to Mr. Damon Johnson/ Fire Chief, Caddo ParishFire District No. 6, P O Box 292, Keithville, Louisiana 71047, or by calling(318) 925-8791.

CADDO PARISH FIRE DISTRICT NO. 6

Statement of Net AssetsDecember 31,2007

Assets

Cash and cash equivalentsAd valorem taxes receivableFire protection service charges receivableAmbulance receivablesCapital assets - net of accumulated depreciation

Total Assets

GovernmentalActivities

23,743365,978209,15622,954572,133

1,193,964

Liabilities

Accounts payableDeferred revenueLong term liabilities:

Payable within one yearPayable after one year

Total Liabilities

26,60840,475

108,418219,690

395,191

Net Assets

Invested in capital assets, net of related debtRestricted for:

Debt serviceUnrestricted

Total Net Assets

244,025

381,274173,474

798,773

The notes to the financial statements are an integral part of this statement.

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CADDO PARISH FIRE DISTRICT NO. 6

Balance SheetsGovernmental FundsDecember 31, 2007

ASSETSCashAd valorem taxes receivableFire protection service charges receivableAmbulance fees receivableDue from other fundsPrepaid insurance

Total Assets

LIABILITIES AND FUND BALANCESLiabilities

Accounts payable and accrualsDeferred revenueDue to other funds

Total Liabilities

Fund BalancesReserved for debt servicesUnreserved

Total Net Assets

Total Liabilities and Fund Balances

General Fund

$ 14,914192,620209,156

22,954

$ 439,644

$ 26,60833,550

206,012

266,170

173,474

173,474

$ 439,644

Debt ServiceFund

$ 8,829 $173,358

206,012

$ 388,199 $

$ - $6,925

6,925

381,274

381,274

$ 388,199 $

Total

23,743365,978209,15622,954

206,012

827,843

26,60840,475

206,012

273,095

381,274173,474

554,748

827,843

The notes to the financial statements are an integral part of this statement.

CADDO PARISH FIRE DISTRICT NO. 6

Reconciliation of Fund Balances on the Balance Sheetsfor Governmental Funds to Net Assets of

Governmental Activities on the Statement of Net AssetsFor the Year Ended December 31, 2007

Fund Balances - Total Governmental Funds $ 554,748

Amounts reported for governmental activities in the statement ofnet assets are different because:

Capital assets used in governmental activities are not financialresources and therefore are not reported in the funds:

Add - capital assets 1,384,309Deduct - accumulated depreciation (812,176)

Certain liabilities, such as bonds payable, are not due and payablein the current period and therefore are not reported in the funds.

Long Term Obligations (328,108)

Net Assets of Governmental Activities $ 798,773

The notes to financial statements are an integral part of this statement.

12

CADDO PARISH FIRE DISTRICT NO. 6

STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES -

Revenues:Ad valorem taxesFire protection feesAmbulance feesIntergovernmental revenues:

State fire insurance rebateState revenue sharingState supplemental payGrantsDonations

Interest earnedMiscellaneous

Total Revenues

Expenditures:Current:

Fire protectionDebt service:

PrincipalInterest

Total Expenditures

GOVERNMENTAL FUNDSFOR THE YEAR ENDED DECEMBER 31. 2007

General Fund Debt Service

$ 192,391 $ 175,501204,655155,603

20,74810,95029,487

1,6001,825

14,104 5867,206

638,569 176,087

679,282 500

17,168 85,0003,116 17,089

699,566 102,589

Total

$ 367,892204,655155,603

20,74810,95029,487

1,6001,825

14,6907,206

814,656

679,782

102,16820,205

802,155

Net changes in fund balance beforeother financing sources

Other Financing Sources:Proceeds from debt

Net changes in fund balance

Fund Balances, Beginning of Year

Fund Balances, End of Year

(60,997)

(60,997)

234,471

$ 173,474

73,498

73,498

307,776

$ 381,274

12,501

12,501

542,247

$ 554,748

The notes to the financial statements are an integral part of this report.

13

CADDO PARISH FIRE DISTRICT NO, 6

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

of Governmental Funds to the Statement of ActivitiesFor the Year Ended December 31. 2007

Amounts reported for governmental activities in the statement ofactivities are different because:

Net Change in Fund Balances - Total Governmental Funds $ 12,501109,906

Governmental funds report capita! outlays as expenditures.However, in the statement of activities the cost of these assetsis allocated over their estimated useful lives and reported asdepreciation expense. This is the amount by which depreciationexpense ($93,327) exceeds capital outlay ($19,774). ( 73,553)

Repayment of bond principal is an expenditure in the governmentalfunds, but the repayment reduces long-term liabilities in thestatement of net assets and does not result in an expense in thestatement of activities. 85,000

Repayment of principal on debt is an expenditure in thegovernmental funds, but the repayment reduces long-term liabilities in thestatement of net assets and does not result in an expense in the statementof activities. 17,168

Revenues in the statement of activities that do not provide current financialresources are not reported as revenues as funds in the governmental funds

Property taxes and service charges (structure fees) (39,292)

Change in Net Assets of Governmental Activities $ 1.824

The notes to financial statements are an integral part of this statement.

14

CADDO PARISH FIRE DISTRICT NO. 6

Notes to Financial StatementsDecember 31,2007

INTRODUCTION

The Caddo Parish Fire District No. 6 ("the District") was created by the Caddo Parish Commission by ordinance asprovided under the Louisiana Revised Statutes 40:1496. The District is comprised of property in Southwest CaddoParish and is governed by a board of commissioners, who are appointed by the Caddo Parish Commission. The purposeof the District is to provide fire protection and emergency services to residents of the District.

/. Summary of Significant Accounting Policies:

The accompanying financial statements of the District have been prepared in conformity with generally acceptedaccounting principles as prescribed by the Governmental Accounting Standards Board (GASB). In June 1999 theG ASB issued Statement 34, Basic Financial Statements - and Management's Discussion and Analysis -for Stateand Local Governments, and Statement 35, Basic Financial Statements - and Management's Discussion andAnalysis -for Public Colleges and Universities. These Statements establish new financial reporting requirementsfor state and local governments and public colleges and universities throughout the United States. They requirenew information and restructure much of the information that governments have presented in the past.Comparability with reports issued in prior years is affected.

The District has implemented GASB Statement No. 34, Basic Financial Statements - and Management'sDiscussion andAnalysis -for State and Local Governments: GASB Statement No. 37. Basic Financial Statements- and Management's Discussion and Analysis -for State and Local Governments: Omnibus; GASB StatementNo. 38, Certain Financial Statement Note Disclosures; and Government Accounting Standards BoardInterpretation No. 6, Recognition and Measurement of Certain Liabilities and Expenditures in Governmental FundFinancial Statements.

Reporting Entity

The basic criterion for determining whether a governmental department, agency, institution, commission, publicauthority, or other governmental organization should be included in a primary governmental unit's reporting entityis financial accountability. The Governmental Accounting Standards Board has set forth criteria to be consideredin determining financial accountability. These criteria include appointing a voting majority of an organization'sgoverning body and (1) the ability of the primary government to impose its will on that organization or (2) thepotential for the organization to provide specific financial benefits to, or impose specific financial burdens on theprimary government.

The District is a component unit of the Caddo Parish Commission, the financial reporting entity. The Commissionis financially accountable for the District because it appoints a voting majority of the board and has the ability toimpose its will on the District.

The accompanying financial statements present information only on the funds maintained by the District and donot present information on the Commission, the general government services provided by that governmental unit,or the other governmental units that comprise the financial reporting entity.

15

CADDO PARISH FIRE DISTRICT NO. 6Notes to Financial Statements

December 31,2007

/. Summary of Significant Accounting Policies (continued):

Government-Wide and Fund Financial Statements

The government-wide financial statements (the statement of net assets and the statement of activities) reportinformation of all nonfiduciary activities of the District. The statement of activities demonstrates the degree towhich the direct expenses of a given function segment, or component unit are offset by program revenues. Directexpenses are those that are clearly identifiable with a specific function, segment, or component unit. Programrevenues include charges to customers who purchase, use or directly benefit from goods, services, or privilegesprovided by a given function, segment or component unit. Program revenues include grants and contributions thatare restricted to meeting the operational or capital requirements of a particular function, segment, or componentunit. Taxes and other items not properly included among program revenues are reported instead as generalrevenues. The District consists of one program, fire protection.

Governmental fund financial statements are provided for the District. The District consists of three governmentalfunds.

Measurement Focus, Basis of Accounting and Financial Statement Presentation

Government-Wide Accounting- In accordance with Government Accounting Standards Board Statement No. 34,the District has presented a Statement of Net Assets and a Statement of Activities for the District as a whole.Government-wide accounting is designed to provide a more comprehensive view of the government's operationsand financial position as a single economic entity.

Policies specific to the government-wide statements are as follows:

Eliminating Internal Activity - Interfund receivables and payables are eliminated in the Statement of Net Assets.

Application of FA SB Statements and Interpretations - Reporting on governmental type and business-type activitiesare based on FASB Statements and Interpretations issued after November 30, 1989, except where they confl ict orcontradict GASB pronouncements.

Capitalizing Assets -Tangible or intangible assets used in operations with an initial useful life that extends beyondone year are capitalized. Equipment, furniture and fixtures, and buildings are recorded at their historical costs andare depreciated using the straight-line method of depreciation over their estimated useful lives. They are reportednet of accumulated depreciation on the Statement of Net Assets

Program Revenues - The Statement of Activities presents two categories of program revenues - (1) charges forservices; and (2) operating grants and contributions.

Charges for services are those revenues arising from exchange or exchange like transactions with external partiesthat purchase, use or directly benefit from the programs goods, services or privileges. Service charges (structurefees) are reported as charges for services.

Operating grants and contributions, whether operating or capital in nature, are revenues arising from receipts thatare restricted for operating purposes of a program. Supplemental salaries paid to the firefighters by the State ofLouisiana, state revenue sharing, and fire insurance rebates are reported as operating grants and contributions.

16

CADDO PARISH FIRE DISTRICT NO. 6Notes to Financial Statements

December 31,2007

Summary of Significant Accounting Policies (continued):

Measurement Focus, Basis of Accounting and Financial Statement Presentation (continued)

Restricted Net Assets - Restricted net assets are those for which a constraint has been imposed either external ly orby law. Resources restricted for a specific purpose are exhausted before unrestricted net assets are used.

Government-Wide Financial Statements - The government-wide financial statements are reported using theeconomic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earnedand expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grantsand similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider havebeen met.

Government Fund Financial Statements - The Governmental financial statements are reported using the currentfinancial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized assoon as they are both measurable and available. Revenues are considered to be available when they are collectiblewithin the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, theDistrict considers revenues to be available if they are collected within 60 days of the end of the current fiscal year.Principal revenue sources considered are susceptible to accrual include property taxes, service fees, and intereston investments. Other revenues are considered to be measurable and available only when cash is received by theDistrict.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Modifications to theaccrual basis of accounting include:

Interest on general long-term obligations is recognized when paid.

Fund Accounting

The financial activities of the District are recorded in individual funds, each of which is deemed to be a separateaccounting entity. The District uses fund accounting to report on its financial position and the results of itsoperations. Fund accounting is designed to demonstrate legal compliance and to aid financial management bysegregating transactions relating to certain government functions or activities. A fund is a separate accountingentity with a self-balancing set of accounts.

Funds of the District are classified as governmental funds. Governmental funds account for the District's generalactivities, including collection and disbursement of specific or legally restricted monies, the acquisition,construction or improvement of capital assets, and the servicing of long-term debt. Governmental funds of theDistrict include:

General Fund-the general operating fund of the District and accounts for all financial resources, except thoserequired to be accounted for in other funds.

Debt Service Fund - accounts for transactions relating to resources retained and used for the payment ofprincipal and interest on the long-term obligations.

17

CADDO PARISH FIRE DISTRICT NO. 6Notes to Financial Statements

December 31,2007

/. Summary of Significant Accounting Policies (continued):

Budgeting and Budgetary Control

A budget for the ensuing year is prepared by the fire chief and approved by the board of commissioners prior toDecember 31st of each year. The proposed budget is prepared on a cash basis of accounting that is a comprehensivebasis of accounting other than Generally Accepted Accounting Principles (GAAP). The budget is legally adoptedand amended, as necessary, by the board of commissioners. The board reserves all authority to make changes tothe budgets. Unexpended appropriations lapse at year end and must be re-appropriated in the next year's budgetto be expended. The budget was amended in 2007.

Formal integration of the budget into the accounting records is employed as a management control device. Budgetamounts included in the accompanying financial statements include the original adopted budget and all subsequentamendments.

Cash and Cash Equivalents

Cash includes amounts in demand deposits and interest-bearing demand deposits. Cash equivalents includeamounts in time deposits and those investments with original maturities of 90 days or less when purchased. Understate law, the District may deposit funds in demand deposits, interest-bearing demand deposits, or time depositswith state banks organized under Louisiana law or any other state of the United States, or under the laws of theUnited States.

Use of Estimates

The preparation of financial statements generally requires management to make estimates and assumptions thataffect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dateof financial statements and the reported amounts of revenues and expenditures during the reporting period. Actualresults could differ from those estimates.

Capital Assets

The District's assets are recorded at historical cost. Capital assets are recorded as expenditures in the governmentalfund financial statements. Additions, improvements and other capital outlays that significantly extend the useful1 ife of an asset are capitalized. Other costs incurred for repairs and maintenance are charged to expense as incurredDepreciation expense is recorded in the government-wide financial statements using the straight-line method overthe useful lives of the assets. All assets of the District are reported in the accompanying financial statements.

Compensated Absences

Compensated absences for vacation and sick leave do not accrue past the calendar year and are not paid for if nottaken.

18

CADDO PARISH FIRE DISTRICT NO. 6Notes to Financial Statements

December 31,2007

/. Summary of Significant Accounting Policies (continued):

Long-term Obligations

In the government-wide financial statements, debt principal payments of both government and business-typeactivities are reported as decreases in the balance of the liability reported on the Statement of Net Assets. In thefund financial statements, debt principal payments of the governmental funds are recognized as expenditures whenpaid.

Receivables

Accounts receivable in all funds report amounts that have arisen in the ordinary course of business and are fullycollectible.

Governmental fund type receivables consist primarily of amounts due for property taxes and charges for service(structure fees and ambulance fees).

Net Assets/Fund Balances

Jn the Statement of Net Assets, the differences between a government's assets and liabilities are recorded as netassets. The three components of net assets are as follows:

Invested in Capital Assets, Net of Related Debt - This category records capital assets net of accumulateddepreciation and reduced by any outstanding balances of bonds, mortgages, notes or other borrowingattributable to the acquisition, construction or improvement of capital assets.

Restricted Net Assets - This category records net assets that are restricted by external sources such as banksor by law are reported separately as restricted net assets.

Unrestricted Net Assets ~ This category represents net assets not appropriable for expenditures or legallysegregated for a specific future use.

In the Balance Sheet of governmental funds, fund balances are segregated as follows:

Reserved- The reserved fund balances for governmental funds represent the amount that has been legallyidentified for specific purposes.

Unreserved - The unreserved fund balances for governmental funds represent the amount available forbudgeting future operations.

19

CADDO PARISH FIRE DISTRICT NO. 6Notes to Financial Statements

December 31,2007

2. Cash and Cash Equivalents:

At December 31, 2007, the District has cash and cash equivalents as follows:

Book BankInterest-bearing demand deposits S 23.743 S 36.653

These deposits are stated at cost, which approximates market. Under state law, these deposits must be secured byfederal deposit insurance or the pledge of securities owned by the fiscal agent bank. The market value of thepledged securities plus the federal deposits insurance must at all times equal the amount on deposit with the fiscalagent. These securities are held in the name of the pledging fiscal agent bank that is mutually acceptable to bothparties. At December 31, 2007, the District has were secured from risk by federal deposit insurance.

3. Ad Valorem Taxes and Structure Fees:

The District levies taxes on real and business personal property within its boundaries on November 1st of each year.Property taxes are due before December 31sl and attach as an enforceable lien on property as of January 1sl of thefollowing year.

On April 29, 1995, the voters of the District authorized a ten (10) year ten (10) mi l l ad valorem tax. The purposeof the tax is for maintaining and operating fire protection facilities, purchasing fire trucks and other fire fightingequipment, and pay ing the cost of obtaining water for fire protection purposes, including charges for fire hydrantrentals and services. .

On November 20, 1999, the voters of the District approved the issuance of general obligation bonds and thecorresponding ad valorem taxes to be levied for debt service. The amount levied for 2007 was 9 mills .

For the year ended December 31, 2007, total ad valorem taxes of 19 mil ls were levied on property with assessedvaluations totaling $19,857.710 after the application of homestead exemptions and adjudicated property. Totaltaxes levied at December 31,2007, for debt retirement and for operation were 178,719 and $ 198,577, respectively.

The voters of the District also approved the levying of a $75 service charge (structure fee) for each residential orcommercial structure. Total service charges levied at December 31, 2007, were $215,625.

20

CADDO PARISH FIRE DISTRICT NO. 6Notes to Financial Statements

December 31,2007

4. Receivables:

A summary or receivables at December 31, 2007, which are fully collectible, follows:

General Debt Service

Fund Fund Total

Ad valorem taxes $ 192,620 $ 173,358 $ 365.978Ambulance fees 22,954 - 22,854Service charges 209,156 - 209.156

$ 424,730 $ 173,358 S 598,088

5. Capital A ssets:

Capital asset activity for the year ended December 31, 2007 was as follows:

• Beginning EndingBalance Additions Balance

Government activities;

Capitall assets, beingdepreciated:

Buildings & improvements 409,320 - 409,320Equipment & furniture 84.1061 19.774 862.835

Total 1.360,948 19,774 1,380,722

Less accumulated depreciation:Buildings & improvements (156,283) (14,238) (170,521)Equipment (562,566) (79.237) (841,442)

Total (718,849) (93,327) (812,176)Land 3,587 - 3,587

Net capital assets 645,686 ( 73,553) 572,133

21

CADDO PARISH FIRE DISTRICT NO. 6Notes to Financial Statements

December 31,2007

6. Risk Management:The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors andomissions; injuries to employees; and natural disasters. The District carries commercial insurance for all risks of loss, includingworkers' compensation. There were no significant reductions in insurance coverage from the prior year.

7. Pension Plan:

Firefighter's Retirement System of Louisiana

Plan Description

Substantially all employees of the District are members of the Louisiana Firefighters' Retirement System (System), a cost-sharing, multiple-employer defined benefit pension plan administered by a separate board of trustees.

Membership in the Louisiana Firefighters' Retirement System is mandatory for all full-time firefighters employed by amunicipally, parish, or fire protection district that did not enact an ordinance before January I, 1980, exempting itself fromparticipation in the System. Employees are eligible to retire at or after age 55 with at least 12 years of creditable service or ator after age 50 with at least 20 years of creditable service. Upon retirement, members are entitled to a retirement benefit,payable monthly for life, equal to 3 1/3 percent of their final-average salary for each year of creditable service, not to exceed100 percent of their final-average salary.

Final-average salary is the employee's average salary over the 36 consecutive or joined months thai produce the highestaverage. Employees who terminate with at least 12 years of service and do not withdraw their employee contributions mayretire at age 55 (or at or after age 50 with at least 20 years of creditable service at termination) and receive the benefit accruedto their date of termination. The System also provides death and disability benefits. Benefits are established or amended bystate statute.

The System issues an annual publicly available financial report that includes financial statements and required supplementaryinformation for the System. That report may be obtained by writing to the Firefighters' Retirement System. Post Office Box94095, Baton Rouge, Louisiana 70804, or by calling (225) 925-4060.

Funding Policy

Plan members are required by state statute to contribute 8.0% of their annual covered salary and the District is required tocontribute at an actuarially determined rate. The employer contribution rate ranges from 13..75% of annual covered payrollto 15.5%. The contribution requirements of plan members and the District are established and may be amended by state statute.As provided by Louisiana Revised Statute 11:103, the employer contributions are determined by actuarial valuation and aresubject to change each year based on the results of the valuation for the prior fiscal year. The District's contributions to theSystem for the year ending December 31, 2007 was $26,023 based on eligible wages of $ 177,532.

CADDO PARISH FIRE DISTRICT NO. 6Notes to Financial Statements

December 31,2007

8. Per Diem Paid to Commissioners:

The District has a voluntary board; therefore, no per diem amounts were paid during this period.

,416

9. Long-Term Obligations:

A summary of change in long-term debt Balance Principal Balance1/01/2007 Payments 12/31/2007

General Obligation Bonds $ 375,000 ( 85,000) $ 290,000Ford Motor Credit 42,196 (13,138) 29,058Capital Leases Payable 13,080 ( 4,030) 9,050

Totals $430,276 $102,168 $328,108

On September 1, 2000, the District sold $470,000 of general obligation bonds dated August 1, 2000, due in annual installments of$20,000 to $45,000 through August I, 2015. The interest rate ranges from 5.0% to 7.0%. The bonds are secured by levy andcollection of ad valorem taxes.

The annual requirements to amortize obligation bonds outstanding as of December 31, 2007, areas follows:

YearEnding Principal Interest Total

200820092010

Total

Ford Motor Credit represents monies borrowed for an ambulance bearing interest at 6.%, payable in 4 annual installments of $ 17,683.

Capital leases payable represents monies borrowed for the purchase of equipment bearing interest at 8.5%, payable in 4 installments

of $5.142.

90,00095,000105,000290,000

12,6487,9062,73023,284

102,648102,906107.730313,284

23

CADDO PARISH FIRE DISTRICT NO. 6

Notes to Financial Statements

December 31,2007

10, On-Behalf Payments for Fringe Benefits and Salaries:

Supplemental salary payments are made by the State directly to certain firemen employed by the District. GASB Statement

No. 24 requires that on-behalf payments be recognized as both revenue and expenditure by an employer government entity.

In accordance with this Statement, $29,487 has been recognized as both intergovernmental revenue (state supplemental pay)

and salaries in the General Fund.

/ /. Due To/From Other Funds:

As of December 31,2007, interfund receivables and payable resulting from various interfund transactions were as follows:

Due From Due to

Other Other

Funds Funds

General Fund $ - $ 206,012

Debt Service Fund 206,012 -__

$ 206,012 $ 206.012

24

CADDO PARISH FIRE DISTRICT NO. 6Budgetary/GAAP Reporting Reconciliaton

December 3 1, 2007

Budqetarv/GAAP Reporting Reconciliation

Revenues:Ad valorem taxesFire protection service feesAmbulance feesIntergovernmental

State fire insurance rebateState revenue sharingState supplemental pay

Interest earnedMiscellaneousTotal revenues

Expenditures:Current fire protection:

Ambulance expenseCollection expenseEmployee benefitsFirefighters retirementGas, oil and fuelInsuranceMedical suppliesOffice supplies and expensesPayroll taxesPension fund contributionProfessional FeesPublic relationsRepair and maintenanceSalariesStation suppliesTraining and travelUniformsUtilitiesCapital outlay

Total fire protectionDebt service

Total expendituresExcess Revenues

Over ExpendituresFund Balances, BeginningFund Balances, Ending

General

Actual onGAAP Basis

$ 192,391204,655155,603

20,74810,95029,48714,10410,631

638,569

162,19414,51721,11426,38210,71570,666

8098,050

19,21311,78314,826

1,10014,698

245,4186,6178,1953,891

19,32019,774

679,28220,284

699,566

(60,997)234,471173,474

FundAdjustment to

BudgetaryBasis

$ (13,004)(13,112)(18,146)

-(270)

5,727(29,487)

--

(74,019)

159,818(2)--

(193)(2,019)

(702)(296)

(1,507)-

(2,313)-

(1,791)(29,487)

(516)1,195(313)110

-(37,834)

-(40,210)

-(33,809)

Actual onBudgetary

Basis

$ 179,387191,543137,457

20,47810,950

-14,10410,631

564,550

159,81814,51521,11426,38210,52268,647

1077,754

17,70611,78312,5131,100

12,907215,931

6,1019,3903,578

19,43019,774

639,07220,284

659,356

(94,806)

25

CADDO PARISH FIRE DISTRICT 6Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual

(Cash Basis)General Fund

Fot the Year Ended December 31, 2007

Revenues:Ad valorem taxesFire protection service feesAmbulance feesIntergovernmental

State fire insurance rebateState revenue sharing

Interest earnedMiscellaneousTotal revenues

Expenditures:Current fire protection:

Ambulance expenseCollection expenseEmployee benefitsFirefighters retirementGas, oil and fuelInsuranceMedical suppliesOffice supplies and expensesPayroll taxesPension fund contributionProfessional FeesPublic relationsRepair and maintenanceSalariesStation suppliesTraining and travelUniformsUtilitiesCapital outlay

Total fire protectionDebt service

Total expendituresExcess Revenues

Over ExpendituresFund Balances, BeginningFund Balances, Ending

BudgetedOriginal

$ 212,293211,275545,500

17,00014,00010,000

1751,010,243

174,37616,90222,00025,00010,00055,000

75012,6025,3509,0006,0001,000

20,000175,000

4,1009,5004,000

17,50041,941

610,0215,000

615,021

395,222234,471

$ 629,693

AmountsFinal

$ 179,387191,543137,467

20,47810,95014,10410,915

564,844

180,87314,51721,70826,02310,49468,649

3301,3415,145

11,78312,5131,100

13,083213,908

10,0419,3903,578

19,43033,587

657,493-

657,493

(92,649)234,471

$ 141,822

Actual

$ 179,387191,543137,457

20,47810,95014.10410,631

564,550

159,81814,51521,11426,38210,52268,647

1077,754

17,70611,78312,5131,100

12,907215,931

6,1019,3903,578

19,43019,774

639,07220,284

659,356

(94,806)234,471

$ 139,665

Variancewith FinalBudgetPositive

(Negative)

$-

(10)

--.

(284)(294)

21,0552

594(359)(28)

2223

(6,413)(12,561)

---

176(2,023)3,940

---

13,81340,779

(20,284)20,495

(11,568)

$ (11,568)

26

Marsha O. Millican

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTINGAND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDITOF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS

The the Members of the Board of CommissionersCaddo Parish Fire District No. 6Keithville, Louisiana

I have audited the basic financial statements of Caddo Parish Fire District No. 6 (the District), a component unitof the Caddo Parish Commission, as of and for the year ended December 31, 2007, and have issued my reportthereon dated June 6, 2008. I conducted my audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing my audit, I considered Caddo Parish Fire District No. 6's internal control overfinancial reporting as a basis for designing my auditing procedures for the purpose of expressing my opinion onthe financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District'sinternal control. Accordingly, I do not express an opinion on the effectiveness of the District's internal control,

A control deficiency exists when the design or operation of a control does not allow management or employees, inthe normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. Asignificant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects theDistrict's ability to initiate, authorize, record, process, or report financial data reliably in accordance withgenerally accepted accounting principles such that there is more than a remote likelihood that a misstatement ofthe District's financial statements that is more than inconsequential will not be prevented or detected by theDistrict's internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in morethan a remote likelihood that a material misstatement of the financial statements will not be prevented or detectedby the District's internal control.

My consideration of internal control was for the limited purpose described in the second paragraph and would notnecessarily identify all deficiencies in internal control that might be significant deficiencies or materialweaknesses. I did not identify any deficiencies in internal control that I consider to be material weaknesses, asdefined above.

81O W I L K I N S O N

SHREVEPORT, UA 71 1 O4-3O36

(318) 221-3881

FAX: (318) 221-4641

27

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Caddo Parish Fire District No. 6's financial statementsare free of material misstatement, I 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 thedetermination of financial statement amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of my audit and, accordingly, I do not express such an opinion. The results of mytests disclosed an instance of noncompliance or other matters that are required to be reported under GovernmentAuditing Standards.

This report is intended solely for the information and use of management, the Board of Commissioners, andfederal and state awarding agencies and is not intended to be and should not be used by anyone other than thesespecified parties. Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor asa public document.

Certified Public AccountantJune 6,2008

28

Caddo Parish Fire District No. 6

Corrective Action Taken on Prior Year Findings

For the Year Ended December 31, 2007

Finding 2006-1: The District is not in compliance with the requirements of the 2000 Series GeneralObligation Bond Indenture.

Status: Unresolved.

Finding 2006-2: The District's credit card was used for a personal expenditure.

Status: Resolved.

29

Caddo Parish Fire District No. 6

Schedule of Findings and Questioned Costs

For the Year Ended December 31, 2007

1. The auditor's report expresses an unqualified opinion on the financial statements.

2. No significant deficiencies relating to the audit of the financial statements were reported asmaterial weaknesses in the District's internal control.

3. One instance of noncompliance material to the financial statements of the District wasdisclosed during the audit.

Finding/Noncompliance

Finding #2007-1:Condition: The 2000 Series General Obligation Bond Indenture requires property tax collections dedicatedto debt service be deposited in a separate bank account and be used only for debt service.

Criteria: On March 12, 2007, the District transferred $90,000 from the debt service bank account to anoperating LAMP account to be used for operating costs of the ambulance service.

Cause: The District began operating an ambulance service in 2006. These monies were used to fund theoperating costs of the ambulance service.

Effect: The District is not in compliance with the requirements of the 2000 Series General Obligation BondIndenture.

Recommendation: 1 recommend the District comply with the provisions of the 2000 Series GeneralObligation Bond Indenture and use restricted funds only for their intended purpose.

Management's Response: We concur with the finding. The general fund wil l repay the debt service fundfrom ambulance revenues in 2008.

30