St. Mary Parish Council - Louisiana...2012, on our consideration of the St Mary Pansh Council's intemal control over financial reportmg and our tests of its compliance with certam

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ST. MARY PARISH COUNCIL

Primary Government Financial Statements St Mary Parisli, State of Louisiana

Annual Financial Statements with Independent Auditors* Report

And

Independent Auditors' Reports on Intemal Control and Compliance and Other Matters For the Year Ended December 31,2011

Under provisions of state law, this report is a public document Acopy of the report has been submitted to the entity and other appi opnate public officials 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 oanslicleik of court

AUG 2 2 Release Date


C O N T E N T S

PAGE INDEPENDENT AUDITORS' REPORT 1-3

MANAGEMENT'S DISCUSSION AND ANALYSIS (unaudited) 4-13

BASIC FINANCIAL STATEMENTS

Govemmental-Wide Financial Statements

Statement of Net Assets 14

Statement of Activities 15

Fund Financial Statements

Governmental Funds

Balance Sheet 16

Reconciliation of the Govemmental Funds Balance Sheet to Statement of Net Assets 17

Statement of Revenues, Expenditures, and Changes in Fund Balances 18

Reconciliation of the Statement of Revenues, Expenditures, And Changes m Fund Balances of Governmental Funds to Statement of Activities 19

Proprietary Funds

Statement of Net Assets 20

Statement of Revenues, Expenses, and Changes in Net Assets 21

Statement of Cash Flows 22

C O N T E N T S PAGE

BASIC FINANCIAL STATEMENTS (continued)

Budgetary Comparison Schedule - General Fund 23

Budgetary Companson Schedule - Road Construction &

Maintenance Fund 24

Budgetary Comparison Schedule - Sanitation Fund 25

Notes to Financial Statements 26-65

REQUIRED SUPPLEMENTAL INFORMATION

Schedule of Funding Progress (unaudited) 66

SUPPLEMENTARY INFORMATION - NONMAJOR GOVERNMENTAL FUNDS

Combimng Financial Statements - Nonmajor Govemmental Funds 67

Combining Balance Sheet - Nonmajor Govemmental Fimds -Summarized by Fund Type 68

Combining Statement of Revenues, Expenditures, and Changes In Fund Balances - Nonmajor Govemmental Fimds -Summarized by Fund Type 69

Combining Financial Statement - Nonmajor Special Revenue Funds 70-71

Combimng Balance Sheet - Nonmajor Special Revenue Funds 72-74

Combmmg Statement of Revenues, Expenditures, and Changes In Fund Balances - Nonmajor Special Revenue Funds 75-77

Budgetary Companson Schedule - Gaming Receipt Fund 78

Budgetary Companson Schedule - Commumty Grant Fund 79

Budgetary Comparison Schedule - Wards 5 & 8 Sales Tax Fund 80

Budgetary Companson Schedule - Ward 1,2,3,4,7&10 Sales Tax Fund 81

Budgetary Comparison Schedule - Jail Operating & Maintenance Fund 82 •


SUPPLEMENTARY INFORMATION - NONMAJOR GOVERNMENTAL FUNDS (continued)

Budgetary Comparison Schedule - 16th JDC-St Mary Parish Drug Court 83

Budgetary Comparison Schedule - Job Readiness Program 84

Budgetary Comparison Schedule - Boat Landing Permit Fund 85

Budgetary Comparison Schedule - Lawrence J Michel Memorial

Boat Landing Fund 86

Budgetary Companson Schedule - Joe C. Russo Boat Landing Fund 87

Budgetary Comparison Schedule - Jesse Fontenot Memonal


Budgetary Companson Schedule - Marcel Boat Landing Fund 89

Budgetary Companson Schedule- Quintana Boat Landing Fund 90

Budgetary Companson Schedule - Jessie B. Hayes Memorial


Budgetary Comparison Schedule - Burgmeres Boat Landing Fund 92

Budgetary Comparison Schedule - Local Law Enforcement Block

Grant #2 Fund 93

Budgetary Comparison Schedule - Housing Program 94

Budgetary Companson Schedule - DWI Court 95

Budgetary Comparison Schedule - DWI Court - Patient Fee Fund 96

Budgetary Companson Schedule - OJP Enhancement Grant Fund 97

Combimng Financial Statements - Nonmajor Debt Service Funds 98-99

Combining Balance Sheet - Nonmajor Debt Service Funds 100

Combining Statement of Revenues, Expenditures, and Changes In Fund Balances - Nonmajor Debt Service Funds 101 -102

Financial Statements - Nonmajor Capital Project Fund 103


Balance Sheet - Nonmajor Capital Project Fund 104

Statement of Revenues, Expenditures, and Changes

In Fund Balances - Nonmajor Capital Project Fund 105

GENERAL SUPPLEMENTARY INFORMATION

Compensation Paid Council Members and Parish Presidents 106

Schedule of Insurance Policies (unaudited) 107

SUPPLEMENTARY INFORMATION REQUIRED BY OMB CIRCULAR A-133

Schedule of Expenditures of Federal Awards 108

Notes to Schedule of Expenditures of Federal Awards 109

INTERNAL ACCOUNTING CONTROL AND COMPLIANCE AND OTHER MATTERS

Report on Intemal Control over Financial Reportmg and on Compliance and Other Matters Based on an Audit of Financial Statements Performed In Accordance with Govemment Auditmg Standards 110-111

Independent Auditors' Report on Compliance with Requirements that Could Have a Direct and Matenal Effect on Each Major Program and On Intemal Control Over Compliance in Accordance with OMB Circular A-133 112-113

Schedule of Findings and Questioned Costs

Summary of Audit Results 114

Fmdings - Financial Statement Audit 115-117

Fmdings and Questioned Costs - Major Federal Award Programs 118

Summary Schedule of Prior Year Findings and Related Corrective Action Prepared by Management of St. Mary Parish Council 119

Corrective Action Plan Prepared by Management of St. Mary Pansh Council 120-121

PITTS & MATTK

^ ^ a corporation of certified public uccountanis

INDEPENDENT AUDITORS' REPORT

To the St. Mary Pansh Council Franklin, Louisiana

We have audited the accompanying financial statements of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, and the respective budgetary comparisons for the General Fund, Road Constmction & Mamtenance Fund, and Sanitation Fund of the St Mary Pansh Council, as of and for the year ended December 31, 2011, which collectively compnse the basic financial statements of the Council's pnmary govemment as listed m the table of contents as Basic Financial Statements We have also audited the financial statements of each of the Council's nonmajor govemmental funds presented as supplementary information in the accompanying combimng and fund financial statements and individual fund budgetary companson schedules as of and for the year ended December 31, 2011, as listed m the table of contents as Supplementary Information - Nonmajor Govemmental Funds These financial statements are the responsibility of the St Mary Parish Council's management. Our responsibility is to express opinions on these financial statements based on our audit

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards apphcable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General of the Umted States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of matenal misstatement An audit includes examimng, on a test basis, evidence supporting the amounts and disclosures in the financial statements An audit also includes assessmg the accountmg pnnciples used and significant estimates made by management, as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opimons

p o box 2363 - morgan city, louisiana 70381-2363 - (985) 384-7545

The financial statements referred to above mclude only the primary govemment of the St. Mary Pansh Council, which consists of all funds, orgamzations, institutions, agencies, departments, and offices that compnse the Council's legal entity The financial statements do not mclude financial data for the Council's legally separate component umts, which accounting prmciples generally accepted in the United States of America reqmre to be reported with the financial data of the Council's primary govemment As a resuh, the primary govemment financial statements do not purport to, and do not, present fairly the fmanciai position of the reportmg entity of the St Mary Parish Council as of December 31, 2011, and the changes in its financial position and its cash flows, where applicable, for the year then ended in conformity with accounting principles generally accepted in the United States of Amenca In accordance with accounting principles generally accepted in the United States of America, the St Mary Parish Council, has issued separate reporting entity financial statements for which we have issued our report dated June 28, 2012.

In our opmion, the financial statements referred to above present fairiy, in all matenal respects, the respective financial position of the govemmental activities, the business-type activities, each major fund and the aggregate remaimng fund information for the primary govemment of the St Mary Parish Council, as of December 31, 2011, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary compansons for the General Fund, Road Constmction & Mamtenance Fund, and Samtation Fund for the year then ended in conformity with accounting pnnciples generally accepted m the United States of America In addition, in our opinion, the financial statements referred to above present fairly, in all material respects, the respective fmanciai position of each nonmajor govemmental fiind of the primary govemment of the St Mary Parish Council as of December 31, 2011, and the respective changes in financial position, and respective budgetary compansons, where applicable thereof, for the year then ended in conformity with accounting pnnciples generally accepted in the United States of Amenca

In accordance with Govemment Auditing Standards, we have also issued our report dated June 15, 2012, on our consideration of the St Mary Pansh Council's intemal control over financial reportmg and our tests of its compliance with certam provisions of laws, regulations, contracts, and grant agreements and other matters The purpose of that report is to describe the scope of our testmg of intemal control over financial reporting and compliance and the results of that testmg and not to provide an opinion on the intemal control over fmanciai reporting or on compliance. That report is an mtegral part of an audit performed in accordance with Govemment Auditing Standards and should be considered in conjunction with this report in considenng the results of our audit

Accounting pnnciples generally accepted in the Umted States of Amenca require that Management's Discussion and Analysis and Required Supplementary Information - Schedule of Funding Progress, as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Govemmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in appropnate operational, economic, or histoncal context We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the Umted States of Amenca, which consisted of inquines of management about the methods of

prepanng the information and companng the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively compnse the basic financial statements of the Council's primary govemment The accompanying schedule of expenditures of federal awards, required by U.S Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and the information listed as General Supplementary Information in the table of contents are presented for the purposes of additional analysis and are not a required part of the basic financial statements of the Council's primary government Such information, except for that portion marked "unaudited" on which we express no opinion, has been subjected to the auditing procedures applied in the audit of the basic financial statements of the Council's primary govemment, and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves and other additional procedures in accordance with auditing standards generally accepted m the United States of America In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements of the Council's pnmary govemment taken as a whole

Ait^fÔK CERTIFIED PUBLIC ACCOUNTANTS

June 15,2012

MANAGEMENT'S DISCUSSION AND ANALYSIS

ST MARY PARISH COUNCIL

MANAGEMENT'S DISCUSSION AND ANALYSIS

As fmanciai management of the St Mary Pansh Council (Council), we offer readers of these fmanciai statements an overview and analysis of the financial activities of the Council This narrative is designed to assist the reader in focusing on significant financial issues, identify changes in the Council's financial position, identify any material deviations from the approved budget documents, and identify mdividual fund issues and concerns Readers should read the management's discussion and analysis (M D & A) m conjunction with the Council's financial statements and the notes to the financial statements also mcluded in this report

FINANCIAL fflGHLIGHTS

Key financial highlights for the year ending December 31, 2011 include the following

• Assets of the primary govemment (which includes both govemmental and business-type activities) exceeded its liabilities at the close of the year ended December 31, 2011 by approximately $114 million (net assets) Of this amount, approximately 7% or approximately $8 million, (unrestricted net assets) may be used to meet the Council's ongoing obligations to citizens and creditors

• The Council's total net assets increased by approximately $4 1 million during 2011 Govemmental activities net assets increased by $ 6 million dunng 2011, while the business-type acnvities net assets increased by approximately $3 5 million

• As of the close of the fiscal year, the Council's govemmental funds reported combmed endmg fund balances of approximately $20 4 million, using the new fund balance reporting requirements Approximately $745,000 is available for spending at the Council's discretion (unassignedfund balance)

• At December 31, 2011, fund balance for the General Fund, the Council's primary operating fund, was approximately $1 7 million $800,000 is reserved for non-current portion of receivables The remaining $900,000 is unreserved

• Major asset additions include improvements to Thorguson Road, courthouse chiller replacement, landfill expansion and improvements to the Bums Point Recreation area

• Long-term debt at December 31, 2011 includes the issuance of $6 865 million of Public Improvement Sales Tax Bonds for capital improvements throughout the Parish and the issuance of $600,000 Certificates of Indebtedness for capital improvements to a road

OVERVIEW OF THE FINANCIAL STATEMENTS

With the implementation of the Govemmental Accounting Standards Board Statement No 34, the govemment's presentation of the financial statements has been greatly changed This discussion and analysis is intended to serve as an introduction to the Council's basic financial statements These financial statements are for the primary govemment oniy and do not include any component unit financial statements The Council's basic financial statements are comprised of three components' 1) govemment-wide financial statements, 2) fund fmanciai statements and 3) the notes to the financial statements This

report also includes other supplementary' information in addition to the basic financial statements themselves

Government-Wide Financial Statements

The govemment-wide financial statements, which include the Statement of Net Assets and the Statement of Activities, are designed to be similar to private sector business in that all govemmental and business-type activities are consolidated into columns which add to a total for the primary govemment These statements combine the governmental fund's current financial resources with the capital assets and long-term obligations associated with the Council Also presented in the govemment-wide financial statements IS a total column for the business-type activities of the primary govemment

The Statement of Net Assets presents information on all of the Council's assets and liabilities, with the difference between the two reported as net assets Over time, changes in net assets may serve as a useful indicator of whether the financial position of the Council is improving or deterioratmg

The Statement of Activities presents information showing how the Council's net assets changed dunng the most recent fiscal year All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows Thus, revenues and expenses are reported m this statement for some items that will only result in cash flows in future fiscal penods For example, uncollected taxes and eamed but unused vacation leave resuh m cash flows for future periods The focus of the Statement of Activities is on both the gross and net cost of vanous activities that are provided by the govemment's general tax and other revenues This is intended to sununanze information and simplify the user's analysis of the cost of various govemmental services and/or subsidies to various business-type activities

Both of the govemment-wide fmanciai statements distinguish between functions of the Council that are pnncipally supported by taxes and intergovemmental revenues (govemmental activities) from functions that are mtended to recover all or a significant portion of their costs through user fees and charges (business-type activities) The govemmental activities of the Council include general govemment and administration, public safety, public works, sanitation, culture and recreation, health and welfare, urban redevelopment and housing and economic development and assistance The business-type activities of the Council mclude the solid waste landfill, small animal control and Kemper Williams Park The government-wide fmanciai statements can be found on pages 14-15 of this report


A fund is a grouping of related accounts that is used to mamtain control over resources that have been segregated for specific activities or objectives The Council, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements Traditional users of govemmental financial statements will find the fund financial statement presentation more familiar The focus is now on major funds, rather than generic fund types

Governmental Funds - Govemmental funds are used to account for essentially the same functions reported as govemmental activities in the govemment-wide financial statements The governmental major funds presentation is presented on a sources and uses of liquid resources basis This is the manner in which the financial plan is typically developed Unlike the government-wide financial statements, govemmental fund financial statements focus on near-term outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year Such information may be useful in evaluating a govemment's current financing requirements

Because the focus of govemmental funds is narrower than that of the govemment-wide financial statements, it is useful to compare the information presented for govemmental funds with similar information presented for govemmental activities in the govemment-wide financial statements By doing so, readers may better understand the long-term impact of the govemment's near term financmg decisions Both the govemmental funds balance sheet and the govemmental fimd statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between govemmental funds and govemmental activities

The Council maintains 43 govemmental funds Information is presented separately in the Govemmental Fund Balance Sheet and in the Govemmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General, Road Constmction & Maintenance, Sanitation, Capital Improvement, CDBG Recovery, and the Combined Sewer Constmction funds, all of which are considered to be major funds Budgetary companson schedules are also presented for each major fund except for the Capital Improvement and Combined Sewer Construction funds which do not have legally adopted budgets Data from the other 37 funds are combined into a single, aggregated presentation Individual fiind data for each of these non-major govemmental funds is provided in the form of combining statements and individual budgetary comparison schedules, when applicable, elsewhere in this report The basic govemmental funds fmanciai statements can be found on pages 16-25

Proprietary Funds - The Council maintains three separate proprietary or enterprise funds Enterprise funds are used to report the same functions presented as business-type activities m the govemment-wide financial statements The Council uses enterpnse fimds to account for its solid waste disposal plant, recreation park and small animal control operations

Propnetary fiinds provide the same type of information as the government-wide financial statements, only in more detail The proprietary fund financial statements provide separate information for the Reduction and Transfer Fund (solid waste disposal plant) and the Kemper Williams Park fund since both are considered to be major funds of the Council Because the Small Animal Control fiind is the only remammg enterprise fund, it is also being presented in the basic fmanciai statements, even though the Council considers it to be a nonmajor fund

Notes to the Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided m the government-wide and fund financial statements The notes are a required part of the basic financial statements and can be found on pages 26-65

Other Information - In addition to the basic financial statements and accompanying notes, this report also presents certam required supplementary mformation, such as the budgetary comparison schedules for three of the major funds—General Fund, Road Constmction & Maintenance Fund, and Sanitation Fund The Council has chosen to present these schedules as part of the basic financial statements

The supplementary information section referred to earlier m cormection with the non-major governmental funds IS presented immediately following the notes to the financial statements

Also included in this report are the Office of Management and Budget A-133 Single Audit auditor reports, findings and schedules

GOVERNMENT- WIDE FINANCIAL ANALYSIS

The following table reflects the condensed Statement of Net Assets for 2011, with comparative figures fi-om 2010

Assets

Qinmt and other assets

(other than mtemal balances)

Restncted assets

Internal batanoes

Coital assets, net

Total assets

Labilities

QinentLjabilittes

(other than internal balances)

Internal balances

Longterm liabilities

Total liabildies

Net assets

Invested m capital assets.

net of related debt

Restncted

Unrestncted

Total net assets

Governmental Activities

2011

$ 28,760,581

-(6,463^81)

113,687366

135,984.566

4,908,619

-30,955.058

35,863.677

83,729,087

15,646,763

745.039

$100,120,889

2010

$ 22,481,015

-(7,155,452)

114,102,893

129428.456

4,748,997 -

25,197,420

29.946,417

89,060,918

4,325321

6.095,800

$ 99.482.039

Business-type Activities

2011

$ 6321,924

2,695,656

6,463381

17.649,119

33.130,080

1,240,631

-17,859.980

19,100,611

8,042327

(1,482344)

7,46936

$14,029,469

2010

$ 5.932,948

2,429,026

7,155,452

16,107.492

31.624.918

64Z630

-20,400,980

21.043.610

8,888,155

(4,069,660)

5.76Z813

$ 10.581308

Total

2011

$ 35,082.505

2,695.656

-131,336,485

169,114,646

6.149,250 -

48,815.038

54.964,288

91.771.614

14,164.419

8,214325

$114.150358

2010

$ 28,413,963

2,429,026 -

130,210385

161,053374

5391,627 .

45398,400

50,990,027

97,949,073

255,661

11,858,613

smmî

As noted earlier, net assets may serve over time as a useful indicator of a govemment's financial position In the case of the Council, assets of the pnmary govemment exceeded liabilities by approximately $114 million as of December 31,2011, this is an increase of $4 million from 2010 This change in net assets is the net effect of current year activity All of these factors will be discussed m more detail later in this analysis The largest portion of the Council's net assets (80%) or approximately $92 million reflects its investment in capital assets (e.g land, building, equipment, improvements, construction in progress and infrastmcture), less any debt used to acquire those assets that is still outstanding The Council uses these capital assets to provide services to citizens, consequently these assets are not available for future spending Although the Council's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities

An additional portion of the Council's net assets (1 6%) or $2 7 million represents resources that are subject to extemal restriction on how they may be used This amount has increased from the prior year by approximately $260,000 The majonty of restncted net assets are monies set aside for the repayment of debt The remaining balance of imrestncted net assets, approximately $8 million or 7%, may be used to meet the government's ongoing obligations to citizens and creditors

As of December 31, 2011, the Council was able to report positive balances in all three categories of net assets for the govemment as a whole, as well as for its separate governmental activities There was

however, a deficit in restricted net assets in the business-type activities for December 31, 2011 which was caused by the excess of non-capital related long term debt (the liability for landfill closure and post closure care costs) which exceeded the assets set aside for this liabilit>' However, due to new calculation requirements, this deficit decreased by approximately $2 6 million

Governmental Activities Govemmental activities increased net assets by approximately $700,000 Increases in general revenues, particularly Royalty Road Funds, was the main factor in the 2011 increase

Business-type Activities Net assets from business-type activities increased by $3 4 million or approximately 3 3% Revenues increased by approximately $275,000 The operating transfers in of $2 million and the Landfill Closure special item increase of $2 3 million resulted in an increase in net assets

The table on the following page provides a summary for both govemmental and business-type changes in net assets for the year ended December 31,2011 with comparative totals for the year ended December 31, 2010

The Council's total operating revenues for the year ended December 31, 2011 was approximately $34 million and the total cost of all programs and services was $32 million Net assets increased by $1 9 million from operations during the year The following analysis separately descnbes the operations of govemmental and business-type activities

Governmental activities net assets increased by approximately $700,000 in 2011 The cost of all govemmental activities this year was $27 million As shown in the Statement of Activities on the followmg page, the amount that the taxpayers of St Mary Pansh financed through taxes, royalties and assessments was approximately $16.8 million The amount in revenues that was paid by those who directly benefited from the programs was $3 6 million and $9 million was funding received from other govemments and organizations by means of grants and contnbuUons Interest received on investments amounted to approximately $ 150,000

Program revenues, which amounted to approximately $12 5 million covered approximately 47% of total govemmental costs, the remainder was paid with taxes and other revenues, such as investment earnings, royahies, and state revenue sharing

The Council's largest program in govemmental activities is for general govemment, with $6 6 million or 25% of total resources applied thereto Following tiiat is public works (24%), public safety (16%), health and welfare (12%), culture & recreation (9%), and sanitation (8%)

Revenues

Program Revenue

Charges for services

Operating grants and

contributions

Capital grants and

contributions

General Revenues

Sales and use taxes

Ad valorem taxes

Severance taxes

Other taxss, penalties

and mterest

Royalty road funds

State shared revenues

Special assessments

Gain on sale of equipment

Investment income

Proceeds from loss/damage of assets

Total revenues

Expenses General government

Pubhc safety

Pubhc works

Sanitation Cuhure & recreation

Health & Welfare Urban redevelopment

Economic development & assistance

Bad debts

Interest and fees on long-term debt Solid Waste Landfill Small Animal Control Kemper Williams Park

Total e?q)enses Increase (decrease) m net assets before special items and transfers

Special Items

Landfill closure

Transfers

Increase (decrease) in net assets

Net assets - beginning

Prior penod adjustment

Net assess - begmning (as ^justed) Net assets - endmg

St Mar>'Parish Council

Statement of Changes mNel Assets

For the years ended December 31,

Goyemmenial Activities Busmess-typc Activities TotaJ

2011 2010 2011 2010 2011 2010

$ 3,568,029 S 3,231,640 $ 3,944,042 $ 3,573,245

7,184,862 5,611,723 45,107 181,860

1.781,583 2,453,918

6,410,294

4,262,498

922,508

74,941

4,588,933

566,105

5,963

152,352

42.892

29 560.960

6,642,847

4,288,128

6,457,791

2,077,679

2,457,548

3.336,819

228,086

90,296

1,261,470

6,314,918

3.725,057

907,809

46,907

2,868,151

522,276

5,642

241,439 -

25.929,480

6,388,319

4.912,066

6,360,596

2,042,238

2,319,849

3,443,579

227,183

1,298.574

26 840,664

2,720.296

711,296

26 992 404

(1,062,924)

(2.009.000) (2.041958)

99,482,039 102,586,921

(72 446) ;;

99409 593 102.586,921

71,763

4.873,751

2,252,000

2.009 000

(3.104.882) 3,448.161

10,581,308

10 581.308

30,601

4.060,912 3.785 706

3,984,454 4,246,417

312,965 314,160

576.332 569.832

5.130.409

(812,839) (1.344,703)

2.041,958

697.255

9,884,053

9.884.053

$ 7,512,071 $ 6,804,885

7,229,969 5,793,583

1,781,583 2,453.918

6,410,294

4,262,498

922,508

74,941

4,588,933

566,105

5,963

224,115

42,892

33,621.872

6,642,847

4,288,128

6,457,791

2,077,679

2.457,548

3,336,819

6,314,918

3,725,057

907,809

46,907

2,868,151

522,276

5,642

272,040 .

29.715.186

6.388,319

4.912.066

6,360,596

2,042,238

2,319,849

3,443,579

228,086

1,261.470 3,984,454

312,965 576.332

31.624.119

1,907,457

2,252,000

4,159,457

110,063,347

(72,446)

109,990,90]

$100.120.889 $ 99.482.039 $14.029.469 £10.581.308 $114.150.358

227,183

1,298,574 4,246,417

314,160 569.832

32.122.813

(2,407.627)

(2.407,627)

112,470,974

112.470,974

$110 063.347

9

As mentioned previously, the Council's total net assets increased by $4 million during the current year Governmental activities net assets increased by $600,000 Some factors affecting the change in net assets for govemmental activities were

1 Total revenues increased by approximately $3.6 million or 14% The majority of this mcrease was in general revenues which increased by $2 4 million This was mainly due to an mcrease in Royalty Road Funds in 2011

2 Operating expenditures decreased by approximately $150,000 or 5% This small variance is due to vanous usual increases and decreases in all areas of governmental expenses

Busmess-type activities net assets increased by approximately $3.5 million in 2011 Some factors affecting the change m net assets for business-type activities were

1 Revenues increased by approximately $275,000 from the prior year This was mainly due to increases in landfill fees and small animal control fees in 2011

2 Operating transfers from the govemmental funds were approximately $2 million for the year

3 Due to new valuation requirements, there was a reduction in landfill closure and post closure care costs of approximately $2 3 million in 2011 A more detailed description of this can be found in Note 18 to the financial statements on page 62-64

The Reduction and Transfer fund had an excess of revenues over expenses The Small Animal Control and Kemper Williams Park funds, had an excess of expenses over revenues for the year, therefore, they had a negative change in their respective net assets prior to the operating transfers in from the govemmental funds and non-operating revenues The net effect, after transfers, was the overall mcrease m net assets of approximately $3 4 million for all three enterprise funds

FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS

As noted earlier, the Council uses fund accounting to ensure and demonstrate comphance with finance-related legal requirements

Governmental Funds Govemmental fund equity is classified into five categories non spendable, restricted, committed, assigned and unassigned A more detailed description of these classifications can be found in Note 1 to the fmanciai statements on page 40

As of the end of the current year, the Council's govemmental funds reported combined ending fimd balances of approximately $20 4 million, an increase of $7 million in companson with the prior year At the end of 2011, approximately 72% or $14 7 million of this total amount constitutes assigned fund balance $4 I million, or 20%, is restricted for specific uses $800,000 is considered non spendable for a non-current receivable $114,000 is committed and the remaining $745,000 is unassigned

The General Fund is the chief operating fund of the St Mary Parish Council At the end of the fiscal year, total fund balance of the General Fund was approximately $1 7 million $800,000 is non spendable for non-current portion of receivables The remaining $900,000 is unassigned Compared with total fund balance of approximately $1 4 million at the end of 2010, fund balance increased by $300,000 during 2011 The mam contributor to this variance was an mcrease in ad valorem taxes of approximately $450,000.

10

Fund balance in the Road Construction and Maintenance Fund increased by approximately $300,000 This increase is mainly due to an increase in federal and state funds

Propnetary Funds The Council's proprietary' funds provide the same type of mformation found in the govemment-wide financial statements, but in more detail At the end of the current fiscal year, the Council's proprietary funds reported combined ending net assets of approximately $14 million, an increase of $3 4 million in comparison with the prior year

The mam contributor to this increase is realized in the Council's main proprietary fund which is the Reduction and Transfer Fund This fund accounts for the operation of the parish's solid waste disposal plant The Reduction and Transfer Fund also accounts for landfill closure and post closure care costs In 2011, there was a decrease m the costs associated with landfill closure This resulted in a $2 3 million increase in net assts

There are two other propnetaiy funds The Small Animal Control Fund had an increase in net assets of approximately $10,000 and the Kemper Williams Park Fund had a increase in net assets of approximately $99,000

GENERAL FUND BUDGETARY HIGHLIGHTS

The Council made revisions to the original appropnations which resulted in the final amended budget for 2011 Overall these changes resulted in an mcrease in budgeted revenues of approximately $1 1 million or approximately 16% The majority of this amended increase is in the area of federal and state grants and other revenues which makes up $800,000 This difference is due to the Council's policy of not adopting budgets for grants until it is almost certain of the amount and timing of receipt of the grant monies

When actual results for 2011 are compared with the final budget, revenue collections were over budget by $700,000

The actual charges to appropriations (expenditures) were $48,000 below the final budgeted amounts

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets From the schedule below, the Council's investment in capital assets for its govemmental and business-type activities as of December 31, 2011 amounts to $131 million (net of accumulated depreciation) This investment in capital assets includes land, infrastructure, buildings, equipment and fumiture and various constmction projects within the parish

Governmental Business-lype

Activities Activities Total

Land

Land improvements

Construction in progress

Infrastructure

Building

Equipment and furniture

Improvements

Totals

2011

$ 1.870.876

-3,044,947

80,437.505

11.334,655

2.252.446

14.746,937

$ 113.687.366

2010

$ 1.870.876

-656,180

82.578,502

11.804.005

2,548,256

14.645,074

$114,102,893

2011

$ 2,052,372

1,750,227

2.265,874

--

2,317,570

9,263.076

$17,649,119

2010

$ 2,052,372

1.750,227

6.128

--

2.459.376

9.639,931

$15,908,034

2011

$ 3,923.248

1,750,227

5,310.821

80,437,505

11,334,655

4,570.016

24,010,013

$131,336,485

2010

$ 3.923,248

1,750,227

662,308

82.578.502

11,804,005

5,007,632

24,285,005

$130,010,927

11

Major capital asset events during the current fiscal year included the following

• improvements to Harry P Williams Airport south apron - $647,000 • Landfill Cell 4 Expansion - $1 74 million . New Motor Grader - $312,000 • Improvements to Thorguson Road ~ $961,000 • Improvements to the courthouse chiller ~ $373,000

Long-term Debt: The table below reflects the CounciPs long-term debt at December 31, 2011 with comparative figures from 2010 Govemmental activities account for 67% of the total debt at December 31,2011

Governmental Business-type Activities Activities Total

2011 2010 20n 2010 20n 2010

General obligation debt $ 13,532,000 $ 6,919,000 - - $ 13,532,000 $ 6,919,000 Revenue bonds 14,780,000 16,175,000 - - 14,780,000 16,175,000 Public parks

and recreation bonds 1,550,000 1,770,000 - - 1,550,000 1,770,000 Special assessment bonds 18.720 28,082 - - 18,720 28,082 Bonds payable - - $14,640,000 $ 14,950,000 14,640,000 14,950,000 Less original issue

discount - - (68,020) (68^0) (68,020) (68,020) Compensated absences 142,000 164.000 : : 142 000 164,000

Total $ 30.022.720 $ 25.056.082 $14.571.980 $14.881.980 $ 44.594.700 $ 39.938.062

Business-type long-term debt is responsible for $14 6 million or 33% of the Council's total debt This debt IS comprised of two issues—Solid Waste Bonds, Series 2004 that were issued for the purpose of constmcting improvements at the parish landfill and Solid Waste Bonds, Series 2010 that were issued for expansion at the parish landfill The Council's total debt had a net increase of approximately $466,000 during the current fiscal year There were two new debt issues in 2011 $6 S65 million of Public Improvement Sales Tax Bond were issued for capital improvements throughout the Parish and $600,000 Certificates of Indebtedness were issued for capital improvements to a road Additional mformation conceming the Council's long-term debt can be obtained from Note 13 on pages 51 through 56 of this report

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES

In the fiscal year 2012 Budget, ad valorem revenues are budgeted slightly less than the amount of the 2011 actual revenues Property values were reassessed in 2011, and we expect the values to reflect a slight increase m 2012 These revenues reflect 3 1 % of general fimd budgeted revenues and combined with transfers in, provide 50% of budgeted general fimd revenues

After a slight decrease in 2009, sales taxes in the pansh have mcreased in 2011 This trend is expected to continue throughout 2012 In the Road Mamtenance Fund, Royalty Road Revenues are budgeted slightly less than the final revenue for 2011 2011 royalty road revenues mcreased considerably compared to the pnor year and we are continually momtonng these funds. Except for garbage collection rates, which were adjusted in 2006 due to an increase in garbage collection

12

charges under a new contract, the Pansh's rates and charges for services remain the same for 2012, except that Small Ammal Fees have been increased substantially and revenues are budgeted to be about the same as in 2011

These 2012 revenue projections combined with an increase in expenditures i.e fuel costs, insurance, cost of goods, have required the Parish Council to provide a basic budget m order to continue to provide the level of service to its citizens

In 2004 and 2005, the Parish Coimcil had refunded much of its outstanding debt at a lower interest rate in order to lower its annual debt service and in some instances decrease the term In 2008, two more issues were refinanced to obtain lower mterest rates at a substantial savings to the Parish The Parish also refunded outstanding Jail Construction Bonds which provided a lower mterest rate and a decrease in the annual debt service requirement while providing an additional 1.2 million for additional jail improvements to its mechanical systems, its electronic security system and provides for an emergency generator

The Parish issued $6 865 million in Sales Tax Public Improvement bonds m 2011 for the purpose of funding improvements to the St Mary Pansh Courthouse and several other Parish buildings It is anticipated that these funds will be expended over the next two to three years. The annual debt service payment is budgeted in Fund 224, Sales Tax Bond Sinking fund The final payment of the $2,9 million, 2003 Public Improvement Bond will be made in 2012, thereby freeing up the necessary sales tax revenues for this new debt

In 2012, the Parish's economic activity remains strong and steady Sales taxes have increased somewhat as a reflection of that activity. We have been able to sustain a certam level of economic activity in various sectors and anticipate this to continue with an upsv^ng m the latter part of 2012.

In 2006, the voters of St Mary Parish approved to permit the berthing of a nverboat casino in the Pansh In 2007, the casino opened and as part of an agreement, the Parish received additional funds in the form of a direct payment An annual payment was received in 2009,2010,2011 and 2012. These annual payments are expected to continue The casino continues to operate and in addition to the creation of new jobs in the Pansh, the economy continues to receive a positive impact through the purchase of goods and services

REQUESTS FOR INFORMATION

This financial report is designed to provide a general overview of the St Mary Pansh Council's finances for all those with an interest in the Council's finances Questions concermng any of the information provided m this report or requests for additional financial information should be addressed to Henry C LaGrange, Chief Administrative Officer, Fifth Floor—Courthouse, Franklin, LA 70538

13

BASIC FINANCIAL STATEMENTS

ST MARY PARISH COUNCIL Statement of Net Assets

December 31. 2011

ASSETS

Govemmental Business-type Activities Activities Total

Current assets Cash and cash equivalents Investments Receivables (net of allowances

for uncollectibles) Due from component umts Due from other govemments Intemal balances

Total current assets

Noncurrent assets

Restncted cash

Restricted investments

Total restncted assets

Bond issuance cost

Capital assets L,and and improvements

Buildings, net of accumulated depreciation Improvements other than buildings, net of

accumulated depreciation Equipment and furniture, net of accumulated

depreciation Infrastructure, net of accumulated depreciation Construction m progress

Total noncurrent assets

Total

$1,237,298 13.654.654

$383 5,290.828

734,754

$1,237,681 18,945,482

810,181 734,754 1.544,935 1,820.696 1,820,696

11,237.752 99,701 11,337,453 (6,463,381) 6.463,381

22.297.200

1,870.876 11,334,655

14,746,937

2,252,446 80,437,505

3,044.947

113.687,366

$135,984,566

12,589.047

1,844.652

851.004

2,695,656

196,258

3.802,599

9.263,076

2.317,570

2,265,874

20,541.033

$33,130,080

34.886,247

1.844,652

851.004

2,695,656

196,258

5,673,475 11,334,655

24,010.013

4.570.016 80.437,505

5.310.821

134.228.399

$169,114,646

LlABILrriES AND NEF ASSETS

Liabdities

Current liabilmes Accounts payable Contracts payable Retamage payable Accrued habilittes Deferred revenue Accrued mterest payable Current portion of tong-tcrm debt

Total current liabiliues

Noncurrent liabilities Other post-employment benefits Compensated absences Noncurrent portion of long-temi debi L andnil closure costs and post-closure care costs

Total noncunent liabilities

Total liabilities

Net Assets Invested in capital assets, net of related debt Restncted for

Debt service Other purposes

Unrestnaed

Total net assets

Total liabilities and net assets

$1,279,053 5,400

50,159 484,870

17.649 370,126

2 701,362

A 908,619

3.611.700 142.000

27.201 358

30.955,058

35.863.677

83.729.087

2,549.253 13,097,510

745.039

100.120.889

$135 984.566

J225.549

334.848 90.234

590.000

1.240.631

514.000

13.981,980 3.364.000

17.859,980

19.100.611

8,042,527

500 795 (1.983.139) 7.469,286

14,029.469

$33,130,080

$1,504,602 340,248 140 393 484 870

17,649 370.126

3,291,362

6 149,250

4.125,700 142.000

41,183.338 3.364.000

48.815.038

54.964,288

91.771,614

3.050,048 11.114,371 8.214.325

114.150,358

$169,114,646

14

The accompanymg notes are an integral part of these financial statements

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Reconciliation of the Govemmental Funds Balance Sheet to the Statement of Net Assets December 31. 2011

Reconciliation of the total fund balance -- total govemmental funds to the net assets ofgovemmental activities

Total fund balance - Govemmental Funds $20,460,069 Amounts reported for govemmental activities in the Statement of Net Assets

are different because

Capital assets used in govemmental activities are not current financial resources and, therefore, are not reported in the govemmental funds balance sheet 113,687,366

Interest payable on long-term debt does not require current financial resources, and, therefore, interest payable is not reported as a liability in the govemmental funds balance sheet (370,126)

Noncurrent liabilities are not due and payable in the current period and, therefore, they are not reported in the govemmental funds balance sheet

Current portion of long-term debt $2,701,362 Noncurrent portion of long-term debt 27,201,358 Compensated absences 142,000 Other post-employment benefit plans 3,611,700 (33,656,420)

Net assets ofgovemmental activities $100,120,889

17

The accompanying notes are an integral part of these financial statements

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

to the Statement of Activities For the Year Ended December 31, 2011

Reconciliation of the changes m fund balances - total govemmental funds to the change in net assets ofgovemmental activities

Net change in fiind balance - Govemmental Funds $7,164,543

Amounts reported for govemmental activities in the Statement of Activities are different because

Govemmental funds report capital outlay as expenditures However, m the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense This is the amount by which capital outlays $4,708,989 meeting the Council's capitalization policy exceeded depreciation ($5,124,516) in the current period (415,527)

Bond proceeds provide current financial resources to govemmental funds, but issuing debt increase s noncurrent liabilities in the statement of net assets Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces noncurrent liabilities in the statement of net assets

Debt issued Revenue bonds (7,465,000) Repayments of principal on long term debt 2,476,362

Increase m accrued interest (55,082)

Net adjustment (5,043,720)

Some expenses reported in the Statement of Activities do not require the use of current financial resources, therefore, are not reported in govemmental fiinds as expenditures

Other post employment benefits (994,000)

Change in net assets ofgovemmental activities $711,296

19 The accompanying notes are an integral part of these financial statements

SI MARY PARISH COUNCIL

Siaiemem of Net Assets Propnetary Funds

December 31, 2011

Business-type Activities Enterprise Funds

Reducuon and

Transfer Fund

Small Animal Control

Fund

Kemper Williams

Park Fund Total

ASSETS

Current assets Cash and cash equivalents Investments Receivables (net of allowances

for uncollectibles) Due from other governments Advance to other funds

Total current assets

Noncurrent assets Restncted cash Resmcted mvestments

Total restncted assets

Bond issuance cost

Propert)', plant, and equipment (net of accumulated depreciation)

Total noncunent assets

Total assets

$143 5.290,828

707,332 99,701

6.M2,143

12,210,147

1,844.652 851.004

2.695.656

196.258

15.376.508

18.268.421

$30,478,569

$8,320

213,299

221,619

-

41.812

41.812

$263,431

$240

19,102

264,324

283,666

-

2,230,799

2,230,799

$2,514,465

$383 5.290.828

734.754 99,701

6,589,766

12.715,432

1,844,652 851.004

2.695,656

196.258

17,649.119

20,541,032

$33,256,465

LIABILITIES AND FUND EQUITY

LiabUmes Cunent liabilities

Accounts payatde and accrued expenses

Contracts payable Retamage payable Bonds payable wtthm one year Advance from other funds

Total current liabilities

Long-term liabilities Other post-employment benefits Bonds payable (net of unamortized discounts) Landfill closure and

post-closure care costs

Total long-temi Iiabdities

Total iiabiliUes

Net assets Invested in capital assets,

net of related debt Restncted for debt service Restncted for post-closure care Unrestncted

Total net assets

Total liabilities and net assets

$191,187 334,848 90,234

590,000

1.206,269

316,000

13,981.980

3,364.000

I7,66L980

18,868,249

5,769,916 500,795

f 1.983,139) 7.322.748

11.610.320

$30,478,569

$14,138

14 138

88.000

88.000

102,138

41.812

119.48]

J 61.293

$263,431

$20,224

126.385

146.609

110.000

UOMO

256.609

2,230.799

27.057

2.257,856

$2,514,465

$225,549 334,848

90.234 590.000 126,385

1,367,016

514,000

13,981,980

3,364,000

17,859,980

19,226,996

8,042,527 500,795

(1,983,139) 7,469,286

14,029,469

$33,256,465

20

The accompanying notes are an integral part of these fmanciai statements


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

For the Year Ended December 31, 2011

Business-iypc Activities Enterprise Funds

Reduction Small Kemper and Animal Williams

Transfer Control Park Fund Fund Fund Total

Operating revenues Solid waste disposal fees Impound fees Admission fees Campsite fees Special events Other

Total operatmg revenues

Operatmg expenses Personal services Contractual services Supplies Materials Utilities Repaus and mamtenance Landfill closure costs Equipment and rentals Miscellaneous Depreciation Insurance

Total operatmg expenses

Net operatmg mcome (loss)

Non-operating revenues and expenditures

Investment earnings Gifts/donations Other

Debt service Interest Fees

Total non-operating revenues

Income (loss) before special item contribution and transfers

Special Item - Reduction m landfill closure & post closure care costs

$3,553,320

1,155

3,554,475

1.177,593 110,617 55,307

278,500 66,377 175.049 153,000 621,485 15,404

690,151 68,305

3,411,788

142,686

71.516

2,242

(561.144) (11,521)

(498,907)

(356,221)

2,252,000

$189,860

189,860

231,600

8,237 18,255 25,979

6,692 576

16,365 5,261

312,965

(123,105)

185

3.023

3.208

(119,897)

-

$15,563 79,795 51,623 47,157

194,138

332,698 7,082

32,322 7,227

76,006 22,714

20,834 13,845 41,757 21,847

576,332

(382,194)

62 45,107 304

45,473

(336,721)

-

$3,553,320 189,860 15,563 79,795 51,623 48,312

3,938.473

1,741,891 117.699 95,866

303,982 168,362 197,763 153.000 649,011 29,825

748.273 95.413

4,301,085

(362.613)

71,763 45,107 5,569

(561,144) (1U521)

(450,226)

(812,839)

2,252,000

OTHER FINANCING SOURCES

Operatmg fransfers in General Fund Sanitation Fund

Total contributions and transfers

Change m net assets

Net assets, begmnmg of year

Net assets, end of year

1,443,000

1,443.000

3,338,779

8,271,541

$11,610,320

130,000

130,000

10,103

151,190

$161,293

436,000

436,000

99,279

2,158,577

$2,257,856

566,000 1,443.000

2,009,000

3,448,161

10,581,308

$14,029,469

21

The accompanymg notes are an integral pan of these fmanciai statements


Statement of Cash Flows Propnetary Funds

For the Year Ended December 31, 201!

Increase (Decrease) m Cash &. Cash Equivalents

Cash flows from operating activities Received from charges for services Payments to suppliers for goods & services Payments to employees for services

Net cash flows (deficiency) from operating activities

Cash flows from noncapital financmg activities Contnbutions Operating transfers m from other funds Advances to other funds Miscellaneous

Net cash flows from noncapital financmg activities

Cash flows from capital and related fmanciai activities Fixed asset acquisitions Debt payments

Business-type Activities Enterpnse Funds

Reduction and

Transfer Fund

$3,383,364 (1,007,917) (1,112.820

1.262,626

1,442.999 844,534

2,242

2,289,775

(2,468,432) (879,465)

Small Animal Control Fund

%\85,696 (64,593)

(209,937)

(88,834)

130,000 (33,474)

3.023

99,549

(10,900)

Kemper Williams

Park Fpnd

$186,084 (203,812) (334,729)

(352,457)

45.107 436.000

(118.989) 304

362,422

(10,027)

Total

$3,755,144 (1,276.322) (1,657,487)

821.335

45.107 2,008.999

692,071 5,569

2,751.746

(2,489359) (879,465)

Net cash flows (deficiency) from capital and related financing activities

Cash flows from mvestmg activities Investment eanungs Purchase of mvestments

Net cash flows (deficiency) from mvestmg activities

Net mcrease (decrease) m cash and cash equivalents

Cash and cash equivalents at beginnmg of year

Cash and cash equivalents at end of year

Shown m the accompanymg Statement of Net Assets Cash and cash equivalents Restncted cash

Total cash and cash equivalents

(3,347.897) (10.900) (10,027) (3,368.824)

71,516 (17,070)

54,446

258,950

1,585,845

$1,844,795

$143 1.844,652

$1,844,795

185

185

-

-

62

62

240

$240

71.763 (17.070)

54.693

258.950

1,586.085

$1,845,035

22L

Busmess-type Activities

Reduction and

Transfer Fund

Enterpnse Funds


Fund

Kemper Williams

Park Fund Total

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

Adjustments to reconcile operatmg income (loss) to net cash provided by operatmg activities

Depreciation and amortization Decrease (uKêase) m accounts receivable increase (decrease) m accounts payable and

accrued expenses Increase in landfill closure costs Increase m other post-employment beneflts

$142,686

690,151 (171.111)

356,900 153,000 91,000

($123,105)

16,365 (4,163)

(931)

-23,000

($382,194)

41,757 (8.053)

(37,967)

-34,000

($362,613)

748,273 (183,327)

318,002 153,000 148,000

Total adjustments 1.119,940 34.271 29,737 1.183,948

Net cash provided by (used for) operatmg activities $1,262,626 ($88,834) ($352,457) $821,335

22R



Budgetary Comparison Schedule General Fund

For the Year Ended December 31,2011

REVENUES

Taxes Ad Valorem Other taxes, penahies, & interests, etc

Intergovemmental revenues Federal grants State funds

State grants State revenue shanng Severance taxes

Cnminal court fund Licenses & Permits Fees, Charges, & Commission Mosquito Abatement Investment earnings & interest Other revenues

Total revenues

Original PKdgel

$3,199,000 48,000

214,745

500,500 950,000 21.500

796,400 441.575 175,000 109,700

-6,456,420

Final aadgfii

$3,199,000 54,900

511,507

172.800 528.498 950,000 21,500

917,100 483.675 190,000 138.421 342.626

7,510.027

Actual

$3,650,300 74.941

682,288

172.800 566.105 922,508 20,090

941,493 468,977 233,549 133,519 346.316

8,212.886

Variance with Final Budget

Positive (Neeative)

$451,300 20,041

170,781

_ 37,607

(27,492) (1,410) 24,393

(14,698) 43,549 (4,902) 3,690

702,859

EXPENDITURES

Current General govemment

Legislative Judicial Executive Elections Finance and administrative Courthouse Other

Public safety Culture & Recreatio/) Health & Welfare Economic development & assistance Mosquito abatement Airport operations

Capital outlay

Total expendimres

Excess (deflciency) of revenues over (under) expenditures

OTHER FINANCING SOURCES (USES)

Operating transfers ui Sales Tax Bond Sinking Fund Gaming Receipt Fund Marcel Boat Landing Fund Amelia Boat Landing Fund

Operatmg transfers out Small Anunal Control Fund Jail Operating & Maintenance Fund Kemper Williams Park Fund Community Grant Fund

Total other financing sources (uses)

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

Fund balance at beginning of year

Residual equity transfer -special assessment funds

Fund balance at end of year

429,439 871.816 188,102 108.497

1,069.056 1,503.533

785.981 615,715 990,086 774.281 254,506 250,000 297,561

8.138.573

(1,682,153)

1,250,000 170.000 15,000 15,000

(180,000)

(411,000) (20.000)

839,000

(843.153)

633.824

($209,329)

429.439 885,216 188.102 128.641

1,045,404 1.373.033

978,781 753.257 789.811 883,540 254,506 300.000 283,061 103,734

8.396,525

(886,498)

1.250,000 170,000 15,000 15,000

(130,000) (276,000) (436,000) (20,000)

588,000

(298,498)

1.404,114

$1,105,616

423,656 835,080 171,076 124.126 939.650

1,400.755 1.170.465

719.414 947.916 791,356 228.086 272,763 220,178 103,734

8,348,255

(135.369)

1,250,000 170.000 15,000 15.000

(130,000) (276,000) (436,000) (20,000)

588.000

452.631

1,404,114

(83,623)

$1,773,122

5,783 50.136 17,026 4,515

105,754 (27.722)

(191,684) 33,843

(158,105) 92.184 26.420 27.237 62,883

-48,270

751.129

---

. ----

751,129

-

$751,129 23



Budgetary Comparison Schedule Road Construction & Maintenance Fund For the Year Ended December 31, 2011

REVENUES

Intergovemmental revenues Federal grants State funds

State grants Royalty road funds Pansh road transportation funds

Investment earnings & interest Other revenues

Total revenues

Original Budget

Fmal Budget Actual

Vanance with Final Budget

Positive (Negative)

$90,000 4,100,000

475,000 6,000

345,000

5,016,000

525,000

$90,000 4,400,000

475,000 2,000

359,000

5,851,000

S604,547

$89,720 4,588,933

445,847 849

81,900

5,811,796

$79,547

($280) 188,933 (29,153) (1,151)

(277,100) (39,204)

EXPENDITURES

Current Public works

Highways/streets and roads 3.669,076 3,890,773 3,900,614 (9,841) Road supervisor 83,208 117,508 122,106 (4,598) Municipal - highways, streets, and roads 50,000 50,000 50,000 Bndges 336,796 223,796 220,085 3,711 Avoca ferry 191,347 189,757 165,182 24,575

Drainage and flood control - 140,000 226,702 (86,702) Capital outlay 156,006 156,006 -

Total expenditures 4,330,427 4.767,840 4,840,695 (72,855)

Excess of revenues over expenditures 685.573 1,083,160 971,101 (112,059)


Proceeds from bonds Operating transfers in

Sanitation Fund Sales Tax Bond Sinking Fund Paving Senes N Fund Paving Senes 0 Fund

Proceeds from loss/damage of asset Operatmg transfers out

Excess Revenue Bond Sinking Fund




Fund balance (deficits) at end of year

50,000 -

(919,000)

(869,000)

75,000 100,000

174 25,826 81,778

(919,000)

(636,222)

75,000 100,000

166 25,826 42,892

(919,000)

(675,116)

--

(38,886)

-

(38,886)

(183,427)

215,323

$31,896

446,938

(275,156)

$171,782

295,985

(275,156)

(150,945)

$20,829 ($150,945)

24

The accompanymg notes are an mtegral part of these financial statements


Budgetary Comparison Schedule Sanitation Fund


REVENUES

Taxes Sales and use

State funds Local grants

Fees, Charges, & Commission investment eammgs & interest

Total revenues

Original Budget

Final Budget Actual


Positive (Negative^

2,186,000

116,872 1,375,000

13,600

$2,800,000

198,332 1,375,000

13,600

$2,805,525

110,282 1,407,804

12,372

3,691,472 4,386,932 4,335,983

$5,525

(88,050) 32,804 (U228)

(50,949)

EXPENDITURES

Current Public safety Sanitation Health & Welfare

Total expenditures

Excess of revenues over expenditures

197,652 2.030,000

58,354

2,286,006

1,405,466

197,652 2,067,000

139,814

2,404,466

1,982,466

158,978 2,066,291

136,530

2,361,799

1,974,184

38,674 709

3,284

42,667

(8,282)


Operatmg transfers m 3/4% Sales Tax Bond Reserve Fund

Operating transfers out Road Construction and Maintenance Fund Solid Waste Reduction Solid Waste Bond Sinking Fund 3/4% Sales Tax Bond Sinking Fund





3,000 500 500

(25,000) (1,200,000)

(243,000) (792,013)

(2,257,013)

(851,547)

3,786,105

$2,934,558

(75,000) (1,200,000)

(243,000) (792,013)

(2,309,513)

(327,047)

3,800,480

$3,473,433

(75,000) (U00,000)

(243,000) (792,013)

(2,309,513)

(335,329)

3,800,480

$3,465,151

-

-

(8,282)

($8,282)

25



Notes to the Financial Statements December 31, 2011

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

On July 16, 1983, the voters of the parish approved a change in the form of parish govemment from the police jury form of govemment to the pansh council system The newly elected parish council vâs seated on November 26, 1984 The St Mary Parish Council is the governing authonty for St Mary Pansh The parish council consists of eleven members, eight of whom are elected from single-member districts and three elected at large The parish president, elected by the voters of the pansh, is the chief executive officer of the parish and is responsible for canying out the pohcies adopted by the parish council and for exercising such general executive authonty as authorized by the charter

The Council, under the provisions of Louisiana Revised Statutes, enacts ordmances, sets policy and establishes programs m such fields as social welfare, transportation, drainage, industnal inducement and health services

The fmanciai statements of the St Mary Pansh Council have been prepared in conformity VAth generally accepted accountmg pnnciples (GAAP) as applied to govemment units. The Govemmental Accounting Standards Board (GASB) is the accepted standard-settmg body for establishmg govemmental accounting and fmanciai reportmg principles. The more significant of the Council's accounting policies are described below.

The Council implemented GASB Statement No 33, Accounting and Financial Reporting for Nonexchange Transactions and GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis -- for State and Local Govemments during the year ended December 31, 2003 Significant changes required by these Statements mclude a Management's Discussion and Analysis (MD & A) section providing an analysis of the Council's overall financial position and results of operations, the preparation of the financial statements using frill accrual accounting for all of the Council's activities (Govemment-wide Financial Statements), a change in the method for reporting nonexchange transactions and the reporting of infrastructure assets. The major change under full accrual accounting includes reporting fixed assets (net of accumulated depreciation) and long-term liabilities in the Government-wide Financial Statements The Council implemented the provisions of these Statements in 2003 except for the reporting of infrastructure acquired prior to implementation. In 2007 the Council retroactively reported infrastmcture assets (acquired prior to January 1, 2003)

26

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The following is a summary of the significant accountmg policies used in prepanng the financial statements

A Reporting Entity

The GASB has established several criteria for determining the govemmental reporting entity The reporting entity for St. Mary Parish should include the St Mary Parish Council, which as govemmg authonty of the pansh is the primary govemment, and other govemmental entities withm the parish for which the Council has financial accountability Financial accountability is determined by the Council, on the basis of applying the following critena from those established by the GASB

1, Financial benefit or burden 2, Appointment of a voting majonty 3, Imposition of will 4 Fiscally dependent

The GASB requires that certam other organizations be mcluded in the reporting entity although the pnmary govemment is not financially accountable if exclusion from the financial statements would render the reporting entity's financial statements incomplete or misleading

Based on the previous critena, the Council has determined that the following component umts are part of the reporting entity

Component Umt St. Mary Pansh Water &

Sewer Comm. No 1 No 2 No 4

No.5

St. Mary Pansh Library

Hospital Service Dislnct No 1

No 2

No 3

Area Served

Amelia/Siracusa Bayou Vista Chatsworth, St. Joseph,

Irish Bend, Yokely, Sorrell, Websterville, Charenton, St Peter

Four Comers/Glencoe

St Mary Pansh except Morgan City

Wax T .ake Outlet to Jeanerette

Atchafalaya River to Amelia

Atchafalaya River to Wax Lake Outlet

Fiscal Year End

December 31 September 30 September 30

September 30

December 31

September 30

December 31

September 30

Criteria Used

2,3 2,3 2,3

2,3

2,3

2,3

2,3

2,3

27


Component Unit

Fairview Treatment Center

Claire House

Waterworks District No 5

No 6

Sewerage Distnct No 5 No. 7

No. 8

No. 9 No. 11

Wards 5 & 8 Jomt Sewer Comm.

Consolidated Gravity Drainage Distnct. No 1

No 2

Gravity Drainage Distnct No 6

Wax Lake East Drainage Distnct

Sub (jravity Drainage District No 1

Area Served

Bayou Vista (serves clients state-wide)

Bayou Vista (serves clients state-wide)

West of Patterson to Calumet, Verdunville, & Centerville

Chatsworth, St Joseph, Insh Bend, Yokely, Soirell, Websterville, Charenton, St. Peter

Verdunville/Centerville Chatsworth, St Joseph,

Irish Bend, Yokely Cotton Road to Wax

Lake Outlet Charenton Cypremort Pomt Atchafalaya River west

to Wax Lake Outlet

Wax Lake Outlet west to Jeanerette

Atchafalaya River to Bayou Ramos

Bayou Ramos to Bayou Bouef

Berwick, Bayou Vista, Patterson, Calumet

of Gravity Drainage Distnct No 2 Bayou Vista

Cajun Coast Visitors and Convention Bureau

St Mary Pansh Sales and Use Tax Dept

St. Mary Parish

St Mary Parish

Fiscal Year End

June 30

June 30

May 31

September 30

September 30 September 30

September 30

September 30 September 30 September 30

September 30

September 30

September 30

September 30

September 30

September 30

December 31

Criteria Used

1,3

1,3

2,3

2,3

2,3 1,2,3

2,3

1,2,3 1,2,3 2,3

2,3

2,3,4

2,3

2,3

2,3

2,3

1,3,4

28


Component Unit

Recreation District No. 1 No. 2 No 3 No 4 No 5

No. 7

Atchafalaya Golf Course Commission

Fire Protection Distnct No. 1 No 2 No 3 No 7 No 11

No 12

Mosquito Control District No 1

Commumcations Distnct (911)

St Mary Pansh Assessor

St Mary Pansh Clerk of Court

Industnal Development Board ofthePanshof St Mary, Louisiana, Inc

Area Served

Amelia Siracusa Bayou Vista Patterson Four Comers,

Glencoe Sorrell

Centerville, Verdunville

Fiscal Year End

September 30 September 30 September 30 September 30 September 30

September 30

Cntena Used

2,3 1,2,3,4 2,3 2,3 2,3

2,3

St Mary Parish

Cypremort Point Franklm/Ward 3 Amelia Bayou Vista Four Comers, Glencoe,

Son-ell Charenton

Cypremort Point

St Mary Parish

St Mary Pansh

St Mary Pansh

St Mary Parish

September 30 1,2,3,4

December 31 2,3 September 30 1 , 2 , 3 September 30 1,2,3 September 30 2, 3 September 30 2, 3

September 30 2,3

December 31 1,2,3

December 31 2,3,4

December 31 4

June 30 1,4

December 31 2 ,3 ,4

29


The GASB provides for the issuance of primary govemment financial statements which are separate from those of the reporting entity However, a primary govemment's fmanciai statements are not a substitute for the reporting entity's financial statements The Council has chosen to issue financial statements of the primary govemment only As such, the accompanying financial statements are not intended to and do not report in accordance with generally accepted accountmg principles Audit reports for component umts can be obtained from the administrative offices of each component and from the Clerk of the Parish Council.

The parish school board, the St Mary Pansh Sheriff, and the municipal level govemments, are excluded from the accompanying financial statements as they are considered autonomous govemments. These units of govemment issue financial statements separate from that of the Council Also m accordance with GASB, the St Mary Conmiunity Action Committee Association, Inc (CAA) and the West St Mary Parish Port, Harbor, and Terminal Distnct (Port) are considered to be related organizations of the St Mary Parish Council, primary govemment. Several different primary govemments or other bodies appoint members to the board of the Port and CAA but none are considered to be financially accountable because they do not impose their will or have a financial benefit or burden relationship with the Port or CAA

B. Basic Financial Statements - Govemment-wide Financial Statements

The govemment-wide financial statements include the Statement of Net Assets and the Statement of Activities which report all activities of the Council as a whole (the Council does not conduct fiduciary activities) The govemment-wide presentation focuses pnmanly on the sustainability of the Council as an entity and the change in the Council's net assets resulting from the current year's activities For the most part, the effect of interfrmd activity has been removed from these statements Governmental activities generally are financed through taxes, intergovemmental revenues and other nonexchange revenues, are reported separately from business type activities, which rely to a significant extent on fees and charges for support

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues mclude 1) charges to customers or applicants who purchase, use, or directiy benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meetmg the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues

30


C Basic Financial Statements - Fund Financial Statements

The financial transactions of the Council are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that compnse its assets, liabilities, reserves, fund equity, revenues, and expenditures

Funds are classified into three categories* govemmental, proprietary and fiduciary Each category, in tum, is divided into separate "fund types " The following is a description of the funds utilized by the Council.

GOVERNMENTAL FUNDS

General Fund

The General Fund is the pnmary operating fund of the Council. It is used to account for all financial resources, except those required to be accounted for in other funds The Council reports the General Fund as a major fund

Special Revenue Funds

Special revenue funds are used to account for the proceeds of specific revenue sources that are earmarked for expenditures for specified purposes

The Coimcil reports two special revenue funds as major funds as follows*

ROAD CONSTRUCTION AND MAINTENANCE FUND

The Road Constmction and Maintenance Fund accounts for the mamtenance and upkeep of the parish road system Major fmancmg is provided by the State of Louisiana Parish Transportation Funds and Royalty Road funds Use of transportation funds is restncted by Lomsiana Revised Statutes

SANITATION FUND

The Samtation Fund accounts for the disposal and treatment of solid waste and sewerage for the Parish Major financing is from the three-fourths percent sales tax The expenditures are restncted by the three-fourths percent sales tax ordinance

Debt Service Funds

Debt Service Funds are used to account for the accumulation of resources for, and the payment of, long-term debt pnncipal, interest and related costs.

31


Capital Projects Funds

Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by propnetary funds).

The Council reports the three following capital project funds as major funds:

CAPITAL IMPROVEMENT FUND The Capital Improvement Fund accounts for ongoing capital projects, other than major sewerage, major road, or jail construction related projects, funded either by federal, state, or local funds

COMBINED SEWER CONSTRUCTION FUND The Combined Sewer Constmction Fund is used to account for the proceeds of the $10 million sewer bonds and three quarters percent sales tax that is being used to constmct and improve sewer systems withm the Pansh

CDBG RECOVERY FUND The CDBG Recovery Fund accounts for major ongoing capital projects and. is funded by federal funds

PROPRIETARY FUND

Enterpnse Funds

Enterpnse funds are used to account for activities of providmg goods and services to outside parties similar to those found in the private sector, where the determination of net income is necessary or useful to sound financial admimstration

The Council reports two of its three propnetary funds as major funds.

REDUCTION AND TRANSFER FUND

Tlie Reduction and Transfer Fund accounts for the operation of the pansh solid waste disposal plant. All garbage and trash m the westem portion area of the pansh is collected at the reduction station in Berwick All garbage and trash in the eastem portion of the parish is first collected at the transfer station in Franklin and then transfened to the Berwick reduction station for disposal.

32


KEMPER WILLIAMS PARK FUND

The Kemper Williams Park Fund accounts for the operations of Kemper Wilhams Park, a recreational facility available for pansh residents The facility charges its patrons for admission to the park which consists of picmc grounds, campsites, athletic fields, a jogging trail, a drivmg range, and tennis courts

Because the Council only has one remaining proprietary fund it is presented in the basic financial statements, even though the Council considers it to be a nonmajor fund.

SMALL ANIMAL CONTROL FUND

The Small Animal Control Fund accounts for the operation of a small animal pound This fund was established for the collection, housing, and disposal of small stray ammals within St Mary Parish and is funded by the pansh, cities, and public of St Mary Pansh

D. Basis of Accounting

Measurement focus is a term used to descnbed "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied

Government-wide Statements and Propnetary Fund Financial Statements

The government-wide statements and the propnetary fund fmanciai statements are reported using the economic resources measurement focus and the accrual basis of accounting. With this measurement focus, all assets and all liabilities (whether current or noncurrent) are included in determining fmanciai position Under the accmal basis of accounting, revenues are recorded when eamed and expenses are recorded at the time liabilities are incmred, regardless of when the related cash flow takes place

Pnvate-sector standards of accounting and financial reporting issued pnor to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Govemmental Accountmg Standards Board Govemments also have the option of following subsequent private sector guidance for their business-type activities and enterpnse funds, subject to this same limitation The Council has elected not to follow subsequent private-sector guidance

33



Govemmental fimd financial statements are accounted for using the current financial resources measurement focus and the modified accrual basis of accounting With this measurement focus, only cunent assets and cunent liabilities generally are mcluded on the balance sheet Operating statements of these funds present increases ( ie , revenues and other financing sources) and decreases (i.e , expenditures and other financing uses) in net cunent assets

Under the modified accrual basis of accounting, revenues are recogmzed when susceptible to accmal (i.e.,when they become both measurable and available) Measurable means the amount can be determined Available means collectible within the cunent period or soon enough thereafter to pay cunent liabilities (the Council uses a sixty day period after year end).

E Revenues

The following is a summary of the Council's recognition policies for its major revenue sources*

Sales tax revenues are recorded when the taxable sales take place, regardless of when the sales taxes are collected by the St Mary Pansh Council's sales tax department

Ad valorem taxes and the related State Revenue Shanng (which are based on population and homesteads in the Pansh) are recorded in the year the taxes are assessed

Federal and State aid and grants are recorded when the Council has met the requirements of the grant and is entitled to receive the fiinds

Investment eamings are generally recorded when eamed.

Substantially all other revenues are recorded when they become available to the Council

The Council reports defened revenue in its fund fmanciai statements Defened revenues arise when a potential revenue does not meet both the "measurable" and "available" cnteria for recogmtion in the cunent period In subsequent periods, when both revenue recogmtion cntena are met, the liability for defened revenue is removed from the combined balance sheet and revenue is recogmzed.

34


Propnetary funds distinguish operating revenues and expenses from nonoperating items Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's pnncipal ongoing operations. The principal operating revenues of the Council's enterprise funds are charges to customers for sale and services Operatmg expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses

F. Expenses/Expenditures

The government-wide and propnetary fund financial statements recognize expenses under the accrual basis of accounting and records the related liability at the time the expense is mcurred.

In the govemmental fund financial statements, expenditures are generally recogmzed under the modified accmal basis of accounting when the related fund liability is inclined, except pnncipal and interest on long-term debt which is not recogmzed until due

G. Budgets

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

1 Ninety days pnor to the begirmmg of each fiscal year, the Pansh President presents to the Council the annual operatmg budget which was prepared by the Director of Fmance imder the direction of the Chief Administrative Officer

2 The Council then orders a public hearing, notice of which, along with a summary of the budget, will be published ten days prior to the date of the hearing m the official journal of the Council.

3. No later than the second to last regular meetmg of the fiscal year, the Council enacts an ordinance to adopt the armual operating budget for the ensuing fiscal year. The Council may adjust the budget as proposed by the Parish President or amend it, as they see fit, by a vote of the majority of the Coimcil

4 The Pansh President may accept or veto the entire budget as approved by the Council or he may line item veto certain appropriations

35


5. Should the Council and Parish President be unable to adopt a budget prior to the beginmng of the year, then fifty percent of the prior year's budget shall be appropriated for the upcoming year, until such time as a new budget is properly enacted

6. The Director of Fmance, under the direction of the Chief Admimstrative Officer, has the authonty to alter, and must approve all changes in budgeted amounts withm function lines. However, budget adjustments that cross function lines require approval of the Council,

7 Formal budgetary integration is employed as a management control device dunng the year.

8 The General Fund and all Special Revenue Funds with activity have adopted budgets

9. Budget appropnations lapse at year end

10. In the financial statement comparison of the budget to actual amounts, both the original and final amended budget amounts are shown

H Cash and Cash Equivalents

For financial statement purposes, cash and cash equivalents include cash on hand, demand deposits, and short term investments with ongmal matunties of less than three months

Certam short-term interest bearing cash accounts are maintamed on a pooled basis, interest revenue or expense is allocated to each participating fund based upon its pro rata share of the total pooled account balance The overall balance in the pooled account is always a large positive balance However, from time to time an individual fund's proportionate share of the balance may temporarily be negative. This most commonly occurs when a fiind makes an unusually large disbursement such as a payment on a constmction contract or when the fund is awaiting an investment to mature and be placed m its cash account

36


I Investments

The Council invests in bank certificates of deposit (CDs) and extemal investment pools. The CDs (nonparticipating contracts) are recorded at cost, unless there is significant impairment of the credit standing of the issuer The pooled investments are recorded at amortized costs which approximate fair market value

The Council also invests m Federal govemment securities which the Council records at fair value

J Receivables

Receivables are stated at net realizable value after provision for estimated uncollectible accounts.

K Restricted Assets

In the Reduction and Transfer Enterprise Fund certain assets are set aside for certam uses. These amounts are reported as either cash or investments and are reported as restricted assets. At December 31, 2011, these cash and investments are restricted for the following purposes*

Reserved for debt service $ 1,046,002 Reserved for landfill closure costs and post-closure care costs 1,380,861 Reserved for depreciation and contingencies 268,793

$2.695.656

L. Fixed Assets

The accounting treatment over property, plant, equipment (fixed assets) depends on whether they are reported in the government-wide, propnetary fund, or govemmental fimd financial statements

No constmction penod interest was capitalized on fixed assets constmcted during the year because the amount was insignificant

Govemment-wide Statements and Propnetary Fund

In the government-wide and proprietary fund financial statements, fixed assets are accounted for as capital assets. All purchased fixed assets are valued at historical cost Donated fixed assets are valued at their estimated fan- market value on the date received Fixed assets are reported at their historical cost or estimated fair market value less their accumulated depreciation Additions, improvements, and other capital outiays that significantiy extend the useful life of an asset are capitalized Other costs incurred for repairs and maintenance are expensed as incuned.

37


Depreciation is computed using the straight-lme method based on the estimated useful life of the vanous assets The following is a summary of estimated useful lives by classification of the fixed assets

Category Years Buildings 25-40 Equipment and fumiture 5-15 Improvements 20-30 Infrastmcture 25-50


In the fund financial statements, fixed assets used in govemmental fund operation are accounted for as capital ouday expenditures of the govemmental fimd upon acquisition,

M Long-term obligations

In the govemment-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable govemmental activities, business-type activities, or propnetary fund type statement of net assets. Sigmficant bond premiums and discounts, as well as sigmficant issuance costs, are deferred and amortized over the life of the bonds using the effective mterest method. Bonds payable are reported net of the applicable bond premium or discount, if significant Significant bond issuance costs are reported as defened charges and amortized over the term of the related debt.

In the fund financial statements, govemmental fund types recognize bond premiums and discounts, as well as bond issuance costs, dunng the cunent period The face amount of debt issued IS reported as other financing sources Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financmg uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

N Compensated Absences

Employees eam vacation and sick leave annually at varying rates depending upon length of service These compensated absences are allowed to accumulate from penod to period if not used

Upon termmation an employee is compensated for accumulated vacation time, but, employees are not compensated for sick time unless termmation is due to retirement

38


An accmal is made for the amount of compensation the employees will receive in the future based upon services performed in the cunent year for vacation time not used An accmal is also made for accumulated sick time estimated to be paid to employees at retirement Only the portion of this accumulated sick pay estimated to be paid to employees retiring v^thin the next year is recorded as a liabihty within the fund to which the particular employees' salary is allocated, the remaimng liability is included with long-term debt in the Statement of Net Assets. The liability for the long-term portion of this accumulated sick pay, totals approximately $142,000.

The Council's cunent compensated absences, by fund, are approximately as follows:

Major funds General Fund $75,000 Road Constmction and Mamtenance Fund 28,000 Reduction and Transfer Fund 15,000 Kemper Williams Park Fund 4,000

Non-major funds Small Ammal Control Fund 5,000

The entire compensated absence liability is reported on the govemment-wide fmanciai statements. For govemmental funds financial statements, the cunent portion of unpaid compensated absences is the amount that is normally expected to be paid using expendable available financial resources. The noncurrent portion of the liability is not reported

0 Equity Classifications

Government-wide Statements and Proprietarv Fund Statements

Eqmty is classified as net assets and displayed m the three components*

a) Invested in capital assets, net of related debt - Consists of capital assets net of accumulated depreciation and reduced by the outstanding balances of bonds that are attributable to the acquisition, constmction, or improvement of those assets

b) Restncted net assets - Consists of net assets with constraints placed on the use either by (1) extemal groups such as creditors, grantors, contributions, or laws or regulations of other govemments, or (2) law through constitutional provisions or enablmg legislation

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

39



Govemmental fund equity is classified by five categories nonspendable, restncted, committed, assigned and unassigned

a.) Nonspendable - represents those portions of fund equity that cannot be spent because they are not m spendable form or because they are legally or contractually required to be mamtained intact

b) Restncted - represents those portions of fund equity not appropnable for expenditure or legally segregated for a specific future use

c) Committed - represents those portions of fund equity that can be used only for specific purposes pursuant to constraints imposed by formal action of the Council's highest level of decision-making authority. Commitments may be established, modified, or rescinded only through formal actions by the Council

d) Assigned - represents those portions of fund equity that are constrained by the Council's intent to be used for specific purposes, but are neither restricted nor committed

e.) Unassigned - represents those portions of fund eqmty that has not been assigned to other fimds and that has not been restricted, committed, or assigned to a specific purpose within the General fimd

The Council considers amounts to have been expended first out of committed funds, followed by assigned fimds, and then unassigned funds when expenditures are incuned for purposes for which fimds of any unrestncted fund balance classifications have been used

P. Interfund Transfers

Permanent reallocations of resources between fimds of the Council are classified as interfund transfers For the purpose of the Statement of Activities, all interfimd transfers between individual govemmental fimds have been eliminated

Q. Reclassification

Certain items have been reclassified in order to make these fmanciai statements more meaningful and comparative.

R Accounting Estimates

The preparation of financial statements in conformity with generally accepted accounting principles require management to make certain estimates and assumptions that affect the reported amounts and disclosures. Accordingly, actual results could differ from those estimates

40

NOTE 2 - SPECL\L ITEMS

Significant transactions, within the control of management, that are either unusual in nature or infrequent in occunence are special items The Council had the following special Item dunng 2011.

The Council with the assistance of its consulting engineers developed a new operating plan for its municipal solid waste landfill The new operating plan included changes in certain methods and materials to be used in the final closure and post closure of the landfill, which were approved by Louisiana DEQ The changes resulted in a reduction in the landfill closure and post closure care costs of $2,252,000 which is recorded m the Reduction and Transfer Fund's Statement of Revenues, Expenditures, and Changes in Net Assets as a Special Item See Note 18 for additional information

NOTE 3 - PRIOR PERIOD ADJUSTEMENT

The Council over accmed grant revenues in a prior year in the Lawrence J. Michel Memorial Boat Landing Fund This enor was conected by reducing beginning fimd balance and receivables from govemments by $72,446. This adjustment has no effect on cunent year operations

NOTE 4 - FUND DEFICITS

The follovwng individual funds of the Council had deficit fimd balances at December 31, 2011

Deficit Fund Nonmajor Funds:

Jail Operating & Maint Fund DWI Court Jesse Fontenot Memorial Boat Landing Fund OJP Enhancement Grant Fund Lawrence J Michel Jr. Memorial Boat Landing Fund

Amount

$(174,357) (6,146)

(22,644) (1,321)

(23,615)

Fund deficits in the Jail Operating & Mamtenance Fund will be fimded either by fiiture revenues or transfers from the General Fund Deficits in the Jesse Fontenot Memorial Boat Landing Fund, and Lawrence J. Michel Jr Memorial Boat Landmg Fund will be funded by future revenues or transfers from the Boat Landing Permit Fund The deficit in OJP Enhancement (jrant Fund will be fimded by future revenues. The fimd deficit in the DWI Court Fund will be funded either by fiiture revenues or a transfer from the DWI patient Fee Fund

41

NOTE 5 - EXPENDITURES - EXCESS OF ACTUAL OVER APPROPRIATED

Actual expenditures exceeded appropriated expenditures by significant amounts in the following fund for 2011

Fund

Special Revenue Fund Jail Operating & Maintenance Fund 16th Judicial District Drug Court Job Readiness Fund DWI Court

Actual

$1,402,777 1,153,498

92,523 132,671

Budget

$1,240,983 1,098,501

82,121 117,484

Unfavorable Variance

$161,794 54,997 10,402 15,187

Jesse Fontenot Memorial Boat Landing 80,032 54,707 25,325

NOTE 6 - TAXES

Sales Taxes

The Coimcil admimsters a Sales Tax Department that is responsible for the collection and distribution of various sales and use taxes levied within the pansh The Department has agreements v«th the Council, the school board and various municipalities, whereby they agree to reunburse the Department for the cost of collections of the taxes

The proceeds from the one per cent sales and use tax received by the Council are used for constmction and maintenance of roads, constmction and maintenance of navigation chaimels, and water and flood control projects, acquirmg and improving public works and buildings, supplementing salaries of all parish employees, operation of recreational facilities, acquisition, mamtenance and repair of vehicles and machinery, and funding bonds The proceeds of the tax are deposited in the Sales Tax Bond Sinking Debt Service Fund

The proceeds from the three-fourths of one per cent sales and use tax received by the Council are used for constmction, acquisition, extension, improvement, operation and mamtenance of solid waste collection and disposal facilities, sewers and sewerage disposal works, facilities for pollution control and abatement, and fimding bonds issued for these purposes The proceeds of the tax are deposited in the Sanitation Special Revenue Fund

42

NOTE 6 - TAXES (continued)

The proceeds from the three-tenths of one per cent sales and use tax received by the Council are used within Wards 1, 2, 3, 4, 5, 7, 8, and 10 of the parish for acquiring and maintaining electnc lights on streets, roads, alleys and public places, acquiring, improving and extending public works, including drainage and water control extensions, acquinng, constmcting, improving and maintaming fire protection facilities, public safety facilities and equipment, recreational facilities, and public health facilities and equipment The proceeds of the tax are deposited in the Wards 5 and 8 Special Revenue Fund and in tiie Wards 1,2, 3, 4, 7, and 10 Special Revenue Fund

The proceeds from the one-half of one percent sales and use tax received by the Council are used solely for the purposes of paymg the cost of operating and maintaining jail facilities and minimum secunty facilities of the Parish, including the cost of feeding, transporting and clothing pnsoners and providing medical care The proceeds of the tax are deposited in the Jail Operating and Maintenance Special Revenue Fund

Ad Valorem Taxes

Ad valorem taxes are assessed on a calendar year basis in September or October of each year. The taxes become due and payable by December 31 and become delinquent on January 1 Notices regarding seizures are sent out m April with the seizure date being May 1 The taxes are collected on behalf of the Council by the Shenff and then remitted to the Council Most ad valorem taxes are received by the Council in December, January and Febmary.

NOTE 7 - CASH AND CASH EOUIVALENTS AND INVESTMENTS

The Council does not have a formal investment policy related to interest rate risk (the nsk of an investment decreasing m value due to increasing interest rates).

In addition, the Council does not have a formal investment policy related to credit nsk (including concentrations of credit) However the Council does follow state law as to limitations on types of deposits and investments as described below

43

NOTE 7 - CASH AND CASH EOUIVALENTS AND INVESTMENTS (continued)

The Council does not invest in any investments subject to foreign cunency risk

Cash and cash equivalents

Under state law the Council may deposit its funds with certain state and federally chartered financial institutions These deposits are required to be insured or collateralized by the financial institutions

At year end 2011 the carrying amount of the Council's cash was $3,082,333 and the bank balance was $4,179,595 A portion of these balances was covered by federal depository insurance, the uninsured portion of $835,220 was collateralized with secunties held by the financial institutions but not in the Council's name

Investments Under state law the Council may invest in certain federal or federally guaranteed securities, certain bank time certificates of deposit, mutual or trust funds, and in the Louisiana Asset Management Pool (LAMP) LAMP is an extemal investment pool operated to allow local govemment to pool their investment funds LAMP is not registered with the SEC as an investment company LAMP is subject to regulator}' oversight of the Louisiana State Treasurer and the LAMP board of directors Share values for the pool are valued at amortized cost which may vary slightly from the fair value

The following is a summary of investments held by the Council at December 31, 2011

U S Govemment Secunties LAMP (rated AAAm by

Standard & Poors)

Amount $17,716,578

2.079,908 $19,796,486

Percentage of Total

Investments 89%

11% 100%

As of December 31, 2011, the Council had the following investments and maturities

Investment Matunties (in years) Fair Less

Investment Tvpe Value than 1 1 - 5 6 - 10 U S Agencies $17.716.578 $15.547.526 $1.456.440 $712.612

LAMP determines its matunties using the weighted average matunty (WAM) method The WAM of LAMP assets is restncted to not more than 60 days, and consists of no securities with a maturity in excess of 397 days The WAM for LAMP's total investments is 54 days as of December 31, 2011

44

NOTE 8 - RECEIVABLES

Receivables at December 31,

Assessments Current Delinquent

Deferred

Accounts

Total

General

Fpncl

$ 345,837

$ 345.837

2011, are as

Road Const

&. Maint Fund

$ 180,985

$ 180.985

S S mm

follows

Govemmental Funds Maior

Sanitation Fund

29.906

29.906

Combmed Sewer

Construction Fund

$ 216,891

$ 216,891

Total Nonmajor

Govemmenta]

- Funds

$ 5.300

7.878 4,650

18,734

$ 36,562

Total Govemmental

Receivables

$ 5,300

7.878 4,650

792,353

$ 810.181

Nonmaior Govemmental Funds

Assessments Current Delmquent

Deferred

Accounts

Total

Accounts

Gammmg

Recepit Fgr)d

9,369

$ 9,369

Reduction

and Transfer

Fund

$ 707 332

OJP Enhancement

Fund

5,865

$ 5,865

Enterpi

Small

Animal

Control FMPd

$ 8 320

2003 Paving

Delmar

PlUtQ

$ 5,300 7.878

4,650

-$ 17,828

nse Funds

Kemper

Williams

Park Fund

S 19.102

l6thJDC St Mary Parish

Drug Court

$ 3,500

$ 3 500

Total

Enterprise Funds

ReceiYflbl<f5

J 734 754

Total Nonmajor

Govemmental Funds

$ 5,300 7,878

4.650 18,734

$ 36,562

All receivables are net of allowances for uncollectible accounts which are immaterial

The deferred portion of special assessments receivables represents the portion of payments that will be due from property owners in future years An amount equal to this is recorded as deferred revenue in the liability section on the debt service funds' balance sheets Delmquent special assessments represents payments due from property owners that have not been paid

45

NOTE 9 - ADVANCES TO/FROM OTHER FUNDS

Advances to/from other funds as of December 31,2011 consisted of the followmg

Funds Advance due from

General Fund Road Construction Capital Improvement Combined Sewer Const Kemper Williams Park Non Major Govemmental Total

Sanitation

$794,991

958,000

$1,752,991

Funds Advance due to

Reduction and Transfer

$3,942,316 1,327,403

714,888

127,536 $6,112,143


$213,299

$213,299

Kemper Williams

$264,324

$264,324

Non Major Govemmental

Funds

$232,318 1,141,986

141,891 126,385

1,253,556

$2,896,136

Total

$3,942,316 2,354,712 2,334,497 1,099,891

126,385 1,381,092

$11,238,893

The balance of $958,000 advanced to Combined Sewer Construction Fund from Sanitation, and $141,891 of the balance advanced to Combined Sewer Construction Fund from the nonmajor fimds, are not scheduled to be repaid in the upcommg year

Advances between funds arise in one of two ways

When one fund has a shortfall, and funds from another fund are used to cover expenditures. These are not expected to be repaid within the current year

The Council maintains a comingled cash account and periodically one fund temporarily borrows amounts the other funds to cover expenditures

46

NOTE 10 - INTERFUND TRANSFERS

Interfund transfers in for the year ended December 31,2011, consisted of the following

TRANSFER TO TRANSFER FROM

Major Govenimental Funds General Fund

Total General Fund

Road Consniictton &, Maintenance Fund

Total Road Construction &• Mamtenance Fund

Sanitation Fund

Capital Improvement

Sales Tax Bond Sinkmg Fund Gaming Receipt Fund Marcel/Amelia Boat Landing Laurence J Mtche) Boat Landing

Sales Tax Bond and Sinking Fund Sanitation Fund Easy St andS WestSer O Paving Crescent Acres Ser N Paving

3/4% Sales Tax Bond Reserve Fund

Sales Tax Bon and Sinkmg Fund Certificate oflndebmess Sinking Fund

$ 1,250,000 170,000 15,000 15.000

100.000 75,000 25,826

166

6,317.095 591,500

1,450,000

200,992

500

6.908.595

Total Transfers In - Major Govemmental Funds 8,560.087

Non Major Govemmental Funds Jai) Operating & Mainten^ce Fund

Total Jail Operating & Maintenance Fund

Sales Tax Bond Reserve Fund 3/4% Sales Tax Bond Sinking Fund Certificates of Indebtedness Sinking Fund

Total Certificates of Indebtedness Sinking Fund

Community Grant Fund Jessie Fontenot Memonal Boat LD

General Fund Gaming Receipt Fund

Sales Tax Bond Sinking Fund Sanitation Fund Road Construction & Maintenance Fund Gaming Receipt Fund

General Fund Boat Landing Permit Fund

$ 276,000 178,000

$

919,000 367,592

454,000

479,150 792,013

1.286,592

20,000

30,000

JatI Sinking Fund Jail Reserve Fund

Jail Operating & Maintenance Fund Jail Operating & Maintenance Fund

453.977 22,321

Total Transfers In -Non Major Govemmental Funds Tola! Transfers In - Govcmmenial Funds

3,538,053 $ 12.098.140

Business-type Activities Reduction and Transfer Fund Small Animal Control Fund Kemper Williams Park Fund

Total Kemper Williams Park Fund

Total Transfers In - Business-type Activities Total Transfers In

Sanitation Fund General Fund General Fund

$ 1,443,000 130.000 436,000

2.009,000

2.009,000 $ 14,107,140

47

NOTEIO - INTERFUND TRANSFERS (continued)

Interfund transfers out for the year ended December 31,2011, consisted of the follovtnng

TRANSFER FROM TRANSFER TO

Major Govemmental Funds General Fund

Total General Fund

Road Construction & Maintenance Fund

Sanitation Fund

Total Sanitation Fund

Total Transfers Out - Major Govemmental Funds

Small Animal Control Fund Jail Operatmg &. Maintenance Fund Kemper Williams Park Fund Community Grant Fund

Certificates of Indebtedness Sinking Fund

Reduction & Transfer Fund 3/4% Sales Tax Bond Sinking Fund Solid Waste Bond Sinking Fund Road Construction & Maintenance Fund

$ 130,000 276,000 436,000

20,000

1.200,000

792,013

243,000 75.000

862,000

919.000

2,310.013

4.091.013

Non Major Govemmental Funds Gaming Receipt Fund General Fund

Certificates of Indebtedness Sinking Fund Jail Operating & Maintenance Fund

170.000 367,592 178.000

Total Gaming Receipt Fund

Jail Operating & Maintenance Fund

Total Jail Operatmg & Maintenance Fund

Marcel/Amelia Boat Landing

Lawrence J Michel Boat Landing

Boat Landing Pemiit Fund

3/4% Sales Tax Bond Reserve Fund

Sales Tax Bond Sinking Fund

Total Sales Tax Bond Sinking Fund Jail Sinking Fund 16thJDCSt Maiy Parish Drug Court Certificates of Indebtedness Sinking Fund

Jail Sinking Fund Jail Reserve Fund

General Fund

General Fund

Jessie Fontenot Memonal Boat LD

Sanitation Fund

Capital Improvement Fund General Fund Sales Tax Bond Reserve Fund Road Constmction & Maintenance Fund

Jail Constmction Fund Juvenile Incentive Block Grant Capital Improvement Fund

453,977 22.321

Total Transfers Out - Non Major Govemmental Funds

Total Transfers Out - Govemmental Funds

Total Transfers Out

715,592

476,298

15,000

15,000

30,000

500

6.317,095 1,250,000 479,150 100,000

$

$

8,146,245

166

25,826

591,500

10,016.127

14,107.140

14.107,140

Transfers are used to Move revenues from the fund, (hat the budget ordinance requires to collect them to the fund that the budget ordinance requires to expend them.

Move receipts restncted to debt service fi'om the funds collecting the receipts to the debt service fund as debt service payments become due, and

Use excess unrestncted revenues collected in one fund to finance various programs accounted for in other funds in accordance with budgetary authorizations

To transfer any assets and liabilities remaining in a fund \îch has ceased operations to a fund continuing to operate

48

NOTE 11 - DUE TO/FROM COMPONENT UNITS

Due from component units at December 31, 2011 consists of the following

Payable to Due From Major Funds

Amount

General Fund Atchafalaya Golf Course Commission portion expected to be repaid currently portion not expected to be repaid currently

$ 595,580 800,000 *

U395,580

Sanitation Fund

Capital Improvements

St Mary Pansh Water & Sewer Comm. No 5 St Mary Parish Water & Sewer Comm No.l St Mary Parish Waterworks District No 5 St Mary Parish Water & Sewer Comm No 2 St Mary Parish Water & Sewer Comm No 4 St. Mary Sewer District No. 5

Hospital Service District No 1

Combined Sewer Construction Fund St Mary Parish Water & Sewer Comm No 4

Total due from component units

6,346 28,893 27,881 53,587 66,760 77,870

261,337

1,532 1,532

162,247 162,247

$ 1,820,696

*The portion not expected to be repaid currently is shown as non-spendable portion of fund balance in the General Fund balance sheet

49

NOTE 12- FIXED ASSETS

C A P f T A L A S S E T S

Capital asset activity for the year ended December 3 1 , 2 0 1 1 , is as follows

Governmental activities Capital assets not being depreciated

Land Construction in progress

Total capital assets not being depreciated

Other capital assets Infrastructure Buildings Equipment and fumiture Improvements

Total other capital assets at histoncal cost

Less accumulated depreciation for Infrastructure Building Equipment and fumiture Improvements

Total accumulated depreciation

Other capital assets, net

Govemmental capital assets, net

Beginning Balance

$ 1,870.876 656,180

2,527,056

125,726,210 17,386.717 10.318.892 19,773.196

173,205,015

(43.147,708) (5,582.712) (7.770.636) (5,128.122)

(61 629.178)

111.575,837

$ 114 102,893 $

Increases

2,571,905

2.571.905

646.451

496.487 $ 994.146

2.137.084

(2.970.586) (469,350) (792,297) (892,283)

(5.124,516)

(2.987.432)

(415 527) $

$

(303.843)

(303,843)

303.843

303.843

-- $

Transfers

(183.138)

(183 138)

183,138

183.138

.

. -

Ending Bfllnqte

$ 1,870,876 3.044,947

4.915,823

126.555,799 17386,717 10.511,536 20.767.342

175.221,394

(46,118,294) (6.052.062) (8,259,090) (6.020.405)

(66.449.851)

108,771,543

$ 113.687,366

Business-type activities

Capital assets not being depreciated Construction in progress Land Land Improvements

Total capital assets not being depreciated

Other capital assets Buildings Equipment Improvements

Total other capital assets at histoncal cost

Less accumulated depreciation for Building Equipment Improvements

Total accumulated depreciation

Other capital assets, net

Business-type activities capital assets, net

Depreciation expense was charged to function as follows

Governmental activities General govemment Public safety Public works Health and welfare Culture and recreation

Total govenunental activities depreciation expense

Business type activities Reduction and Transfer Kemper William Park Small Animat Control

Total business-type activities depreciation expense

$ 6.128 S 2.052,372 1,750,227

3.808.727

4.285.541 7.277,157

10.829,457

22.392.155

(4,285.541) (4.817.781) (1 189,526)

(10,292.848)

12.099.307

$ 15.908 034 S

2,259,746

2.259.746

229,612

229.612

(371.418) (376.855)

(748,273)

(518,661)

1.741.085

861,874 1.281,251 1.770.021

99.593 1.111.777

s

s

$

5 124.516

690.151 41.757 16.365

748 273

(7.889)

(7.889)

- $ 2^65,874 2.052.372

J, 1.750027

6.068.473

4,285,541 7,498,880

10,829.457

22,613.878

(4,285,541) (5,181,310) (1.566.381)

(11.033,232)

11,580.646

17649,119

50

NOTE 13 - LONG TERM DEBT

As of December 31,2011, the govemmental long-term debt is segregated between the amounts to be repaid from govemmental activities and amounts to be repaid from business-type activities.

Govemmental Activities

As of December 31,2011, the govemmental long-term debt of the Council consisted of the following

Public Improvement Sales Tax Bonds $1,255,000 of Public Improvement Sales Tax Refunding bonds, Series ST-2005 were issued on April 1, 2005, for the refimding of Sales Tax Bonds issued April 1, 1996 The bonds bear interest of 3 75 percent and are payable through the year 2016 These bonds are bemg retired from the one percent Sales Tax Bond Sinking Fund $695,000

$2,900,000 of Public Improvement Sales Tax Refundmg Bonds, Series 2003, were issued on October 1, 2003 for the refunding of Sales Tax Bonds issued April 1,1994 The bonds bear interest of 2.0 to 3 7 percent and are payable through the year 2012. The bonds are being retired from the One Percent Sales Tax Bond Sinkmg Fund 405,000

$1,105,000 of General Obligation Refundmg Bonds, Series 2004, were issued on January 1, 2005, for the refunding of General Obligation bonds issued November 1, 1996. The bonds bear interest of 3 75 percent and are payable through the year 2016 These bonds are to be retired from the annual levy and collection of unlimited ad valorem taxes on all property within the Parish's boundaries, excluding the City of Morgan City Although the Council is servicmg the debt on these bonds, the St Mary Pansh Library will be transferring ad valorem taxes to the Council to service the debt These bonds are being paid from the St Mary Pansh Library General Obligation '96 Sinking Fund. 610,000

$1,975,000 of General Obligation Bonds, Series 2005, were issued March 1, 2005, to improve, construct and acquire buildings, equipment, and books for pansh libranes, outside the City of Morgan City The bonds bear interest at rates ranging from 3.8 to 4 75 percent. These bonds are to be retired from ad valorem taxes. Although the Council is servicing these bonds, the St Mary Pansh Library Fund will be expendmg the proceeds and will also be transferring ad valorem taxes to the Council to service the debt. These bonds are being paid from the St. Mary Parish Library General Obligation '96 Sinkmg Fund 1,575,000

51

NOTE 13 - LONG TERM DEBT (continued)

$2,500,000 of General Obligation Bonds, Series 2009, were issued March 1, 2009, to improve, constmct and acquire buildmgs, equipment, and books for the pansh libranes, outside the City of Morgan City. The bonds bear interest at 3.8 to 4 0 percent and are payable through the year 2020. These bonds are to be retired from ad valorem taxes. Although the Council is servicing these bonds, the St. Mary Pansh Library Fund vdll be expending the proceeds and will also be transferring ad valorem taxes to the Council to service the debt These bonds are being paid from the St Mary Pansh Library General Obligation '96 Sinking Fund 2,345,000

$6,865,000 of Public Improvement Sales Tax Bond, Senes 2011 were issued on September 1, 2011, for the acquisition, constmction, improvements, maintenance and repair of roads, capital improvements, public works and buildings, including the acquisition of sites and necessary fixtures, equipment, furmshings and appurtenance The bonds bear interest at 3.0 to 4 25 percent and are payable through the year 2031 These bonds are being retired from the Sales Tax Bond Sinking Fund. 6,865,000

$425,000 of Certificates of Indebtedness, Senes 2006A, were issued on August 22, 2006, to constmct parking facilities at the Atchafalaya Golf Course The certificates bear interest of 4.23 percent and are payable through the year 2016. The certificates are bemg paid by the Certificates of Indebtedness Sinking Fund. 271,000

$300,000 of Certificates of Indebtedness, Series 2006B, were issued on August 22,2006, to pay for improvements and to acquire furnishings and equipment at the Atchafalaya Golf Course The certificates bear interest of 4 23 percent and are payable through the year 2016. The Certificates are being paid by the Certificates of Indebtedness SmbngFund 166,000

$600,000 of Certificate of Indebtedness, Senes 2011 were issued on November 22, 2011, to make capital improvements. The certificates bear interest of 1.93 percent and are payable through the year 2021 The Certificates are being paid by the Certificate of Indebtedness Sinkmg Fund 600,000

REVENUE BONDS $3,575,000 of refunding bonds. Series 2005, were issued on January 1, 2005, for the refunding of revenue bonds issued on September 1, 2000 The bonds bear interest of 4 percent and are payable through the year 2015 These bonds are being retired from the Certificates of Indebtedness Sinking Fund 1,585,000

52


$3,000,000 of public improvement bonds, Series 2007 were issued on August 7, 2007 for constructing road improvement, acquiring equipment and fumiture, and constructing improvement to Recreation District No 2 & No 5 The bonds bear interest of 4 34 percent and are payable through the year 2016 These bonds are being paid by the Certificates of Indebtedness Sinking Fund $ 1,595,000

$6,250,000, Sewerage Sales Tax Bonds, Series 2004, were issued July 1, 2004 to pay the costs of constructing sewerage improvements The bonds bear interest of 4 5 to 5 5 percent and are payable through the year 2024 The bonds are to be retired from the Three-fourths Percent Sales Tax and are paid from the Three-fourths Percent Sales Tax Bond Sinking Fund 4,660,000

$3,750,000, Sewerage Sales Tax Bonds, Senes 2006, were issued Febmary 1, 2006 to pay the cost of constructing sewerage improvements The bonds bear interest of 3 5 to 5 5 percent and are payable through the year 2025 The bonds are to be retired from the Three-fourths Percent Sales Tax and are paid from the Three-fourths Percent Sales Tax Bond Sinking Fund 2,990,000

$1,200,000 Public Building Bonds, Series 2005, were issued January 27, 2005 to acquire, improve, equip, and fumish public buildings The bonds bear mterest of 4 1 percent and are payable through the year 2019 The bonds are to be retired from the Certificates of Indebtedness Sinking Fund 735,000

$2,370,000, Public Parks and Recreation Refunding Bonds, Senes 2008, were issued May 6, 2008, to repay $785,000 of Public Parks & Recreation Bond Senes 2002-A, and $1,570,000 of Public Parks & Recreation Bonds Senes 2002-B The bonds bear interest of 3 38% and are payable through the year 2017 These bonds are to be retired from the excess annual revenues of the Parish and are paid from the Certificate of Indebtedness Sinkmg Fund

1,550,000 $3,490,000 Jail Refunding and Revenue Bonds, Senes 2010, were issued March 1, 2010, to repay $2,290,000 of Revenue Refunding Bonds, Series 2004 and for renovating, improving, and equipping existing Jail Facilities The Bonds bear interest of 3 83 percent and are payable through the year 2020 The bonds are to be retired from the net revenue denved from the operations of the jail facilities and are paid from the Jail Revenue Bond Sinking Fund 3,215,000

53

NOTE 13 - LONG TERM DEBT (contmued)

SPECIAL ASSESSMENT

Paving Certificates

The following special assessment bonds are being retired with the proceeds of special assessment collections as accumulated in each of the four applicable debt service funds for special assessment paving certificates.

It has been the policy of the Council to honor special assessment obligations

$93,616 Paving Certificates, Series 2003, issued May 1,2003, due

In annual installments of $9,362 through May 2013, interest at 4 25% $18,720

Accmed compensated absences-all noncunent 142.000

Total Governmental Activity Debt $30.022.720

Business-type Activities

As of December 31, 2011, the long-term debt payable from proprietary fimd resources consisted of the followmg

$7,600,000 of Solid Waste, Senes 2008, were issued on March 1, 2004 for the purpose of constmcting improvements at the parish landfill The certificates bear interest of 4 4 to 5.4 percent and are payable through the year 2024 The bonds are to be retired from the three-fourths percent sales tax and excess operating revenues from the landfill are to be paid from the Reduction and Transfer Fund

$5,725,000

$8,915,000 of Solid Waste Sales Tax Bonds, Senes 2010, were issued on December 21, 2010 for the purpose of constmcting and acquinng improvements at the parish landfill The certificates bear interest of 3 to 5 percent and are payable through the year 2028 The bonds are to be retired from the three-fourths percent sales tax and excess operating revenues from the landfill and are to be paid from the Reduction and Transfer Fund 8,915,000

Less original issue discount (68.020)

Total Enterpnse Indebtedness $14.57L980

54


At December 31, 2011, $6,555,000 of outstanding bonds are considered defeased

The Council is subject to certain affirmative and negative covenants pursuant to its bond and debt agreements These covenants include but are not limited to

1 Establishment and funding of certain debt service funds 2 Preparation and adoption of budgets 3 Preparation and independent audit of financial statements 4 Restriction as to additional debt issuance 5 Restriction as to investments

Long-term liability activity for the year ended December 31,2011, was as follows

Governmental Activities Bonds payable

General obligation Debt Revenue bonds Public parks and recreation bonds Special assessment bonds

Total bonds payable Other liabilities

Compensated absences Total other liabilities

Govemmental activities long-term liabilities

Busmess-type Activities Bonds payable

Landfill debt Business-type activities long-term

liabilities

Begmnmg Balance Additions Reductions

Endmg Balance

$ 6,919,000 $ 7,465,000 $ (852,000) $ 13,532,000 16,175,000 (1,395,000) 14,780,000 1,770,000 (220,000) 1,550,000

28,082 - (9,362) 18,720

Amounts Due within One Year

$ 987,000 1,475,000

230,000 9,362

24.892.082

164,000 164,000

7.465.000 r2.476.3621 29.880.720

(22,000) 142,000 (22,000) 142,000

$ 25,056,082 $ 7,465,000 $ (2,498,362) $ 30,022,720

$ $ 14,950,000 (68,020) $

$ 14,881,980 $

(310,000) $ 14,640,000 - $ (68,020)

$ (310,000) $ 14,571,980

2.701.362

(14,000)

(14,000)

$

$

$

2,687,362

590,000

590,000

55

NOTE 13 ' LONG TERM DEBT (continued)

Debt Maturity

Debt service requirements (excluding compensated absences and discounts) at December 31, 2011, were as follows.

Governmental Activities - Bonds

Year Ended December 31,

2012 2013 2014 2015 2016

2017-2021 2022-2026 2027-2031

Total

Genera) Obligation Pnncipal

$ 987,000 671,000 701,000 732,000 759,000

3,102,000 3,395,000 3,185,000

S 13,532.000

$

L

Interest

463,993 471,715 446,796 421,084 394,711

1,647,755 1,034,618

372,070

5,252,742

Revenue Bonds Principal

$ 1,475,000 1,540,000 1,605,000 1,670,000 1,305,000 4,805,000 2,380,000

.

$ 14,780.000

$

1

Interest

649,665 584,459 517,640 449,624 378,702

1,161,185 262,134

.

4.003.409

special Assessment Pnncipal

$ 9,362 9.358

--

$ 18,720

$

L

Interest

796 398

-.

1,194

Public Parks and Recreation

Pnncipal

$ 230,000 245,000 255,000 260,000 275,000 285,000

-.

$ 1,550.000

$

$_

interest

52,390 44,616 36,335 27,716 18,928 9,634

--

189,619

2012 2013 2014 2015 2016

2017-2021 2022-2026 2027-2031

Busmess-type Activities

-

$

—

L

Sohd Waste

Landfill Debt

Principal Interest

590,000 620,000 645,000 670,000 695,000

3,980,000 5,040,000 2 400.000

14 640.000

$ 667,234 641,104 615,120 589,841 562,476

2,314,673 1,250,985

121.500

$ 6.762,933

Council's Total Debt

Pnncipal

$ 3,291,362 3,085,358 3,206,000 3,332,000 3,034,000

12,172,000 10,815,000 5,585,000

$ 44,520.720

Interest

$ 1,834,078 1,742,292 1,615,891 1,488,265 1,354,817 5,133,247 2,547,737

493.570

$ 16,209,897

S

—

1

Total

5,125,440 4,827,650 4,821,891 4,820,265 4,388,817

17,305,247 13,362,737 6,078,570

60,730,617

56

NOTE 14 - CONDUIT DEBT OBLIGATION AND ECONOMIC DEVELOPMENT GRANTS

The Council works with the Louisiana Economic Development Corporation (LEDC) to assist certain private entities in expanding their business in order to create jobs in the parish

LEDC assists these pnvate businesses by issuing grants to the Council, that the Council m tum uses to acquire assets to be leased to the private businesses The businesses agree to use the assets to create a specified number of new jobs At the end of the lease, the assets become the property of the business If the businesses fail to create the agreed number of new jobs, the LEDC may reqmre repayment of the grant by the business

In addition, the Council may assist a business by issuing Revenue Bonds in the business's behalf.

In 2011 the LEDC and the Council were assisting five local businesses under these programs.

In 2003, the Council through its component unit, the Industrial Development Board of the Pansh of St Mary, Louisiana, Inc ( I D Board), approved and issued $4 million of Taxable Revenue Bonds in addition, LEDC provided a $1.5 million economic development grant to the business through the Council This was done to provide financial assistance to a business for the acquisition and construction of industrial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying leases Upon repayment of the bonds, ownership of the acqmred facilities transfers to the business served by the bond issuance Neither the Council, nor any political subdivision thereof is obligated m any manner for repayment of the bonds Accordingly, the bonds are not reported as liabilities m the accompanymg financial statements In return for this assistance, the busmess is required to make lease payments to the Coimcil sufficient to fully fund the $4 million m debt and to create a specified number of new jobs. In 2004, the project was completed and all of the proceeds were funded to the pnvate-sector entity. In 2011 the business made all required Ieaseônd payments, but failed to create the number of new jobs specified The outstanding balance of the debt at December 31, 2011 was $1,753,788.

In 2004, the Council and another busmess entered into an economic development award contract with LEDC for $450,000 According to this contract, the Council is responsible for acqmnng and refurbishmg a building, then leasing the building to the pnvate business entity. Under the contract, the private business entity is responsible for startmg and operatmg a business and creating certain jobs in the future The LEDC is responsible for reimbursing the Council for the purchase of the building and renovations up to $450,000 The money is to be used to purchase and refurbish a building to be owned by the Council Upon completion of the renovations, the building is to be leased to the private business entity

Dunng 2005 the Council completed the project and received the final reimbursement from LEDC. The business began its operations in 2005 The busmess failed to create the specified number of jobs in 2011 and in pnor years Due to the business' failure to provide the agreed upon number of jobs, in October 2011 LEDC demanded repayment of pnnciple and interest of $202,269. The business is currently mabng monthly payments of $1,700 on this debt The Council is not responsible for any repayments related to this debt

57

NOTE 14 - CONDUIT DEBT OBLIGATION AND ECONOMIC DEVELOPMENT GRANTS (continued)

In 2006, the Council and another business entered into an economic development award contract With LEDC for $168,000 According to this contract, the Council is responsible for acquiring and refurbishing a building, then leasing the building to the private business entity Under the contract, the pnvate business entity is responsible for operating and expanding a business and creating certain jobs in the future The LEDC is responsible for reimbursing the Council for the purchase of the building and renovations up to $168,000. The money is to be used to purchase and refurbish a building to be ovmed by the Council Upon completion of the renovations, the building is to be leased to the pnvate business entity. Through December 31, 2011 renovations totaling $86,052 were made by the Council and reimbursed by LEDC At December 31, 2011 the project was not complete. The business failed to create the specified number of jobs as of December 31, 2011 Subsequent to year end LEDC terminated the project and requested reimbursement of funds from the business and the Council

In 2007 the 1 D Board issued $2.1 million of Tax Exempt Revenue Bonds to assist with the development of a new business These Bonds are secured solely by properties owned by the business and revenues eamed by the business and a guarantee by its affiliated company. In 2009, all of the approved bond proceeds had been draAvn and utilized by the Company and the project was complete The Company began making principle payments m 2010 and the outstanding balance of the debt was $1,916,628 at December 31, 2011

In addition in 2009, the I D Board issued $2.5 million of Tax Exempt Revenue Bonds to assist with the development of a new business These bonds are secured solely by properties owned by the business and revenues eamed by the business. Dunng 2010, the final $911,000 of the total approved bond proceeds were drawn and utilized by the Company and the project was complete at year end The Company began making pnnciple payments in 2011 and the outstandmg balance of the debt was $2,404,291 at December 31,2011

The Council, nor any political subdivision thereof is obligated in any marmer for repayment of any of the above described debt Accordingly, the debt is not reported as liabilities in the accompanying financial statements

NOTE 15 - VENTURES WITH OTHER GOVERNMENTS

The Council is participating in an agreement with the City of Franklin (City) for the operation of sewerage facilities for the City and surrounding Parish areas The City govemment operates the system including budgetary and financial matters and the Council does not participate m the operation or management of the system The Council reimburses the City for thirty percent of the operating costs. The Council, m tum, is reimbursed for 33% of its share by St. Mary Parish Water and Sewer Commission No 4 The fiscal year for the project ends April 30, 2011

58

NOTE 15 - VENTURES WITH OTHER GOVERNMENTS (continued)

Total revenues for the year ended April 30, 2011, were approximately $269,000, total expenditures were approximately $695,000 Separate balance sheet amounts are not readily available at year end

The City maintains separate financial information for this project, which is mcluded m its financial report for the year ended April 30, 2011, which is available from the Chief Financial Officer of the City of Franklin

The City, Parish, and the St Mary Parish Consolidated Drainage District No. 1 (District) have agreed to set up a fimd for maintenance of the Yokely Pumping Station. Each of the three is to place in a Capital Maintenance Fund money in the amount of $3,333 per year until the amount reaches the sum of $50,000, At any time the fimd falls below $50,000 each entity is to replenish the fund on the same equal basis up to $50,000 The District is in charge of overseeing the Capital Maintenance Fund The District maintains separate financial information for this project, which is included m its financial report for the year ended September 30, 2011, which is available fix>m the Clerk of the St Mary Parish Council Total revenues for the year ended September 30,2011, were approximately $7,000, total expenditures were approximately $9,000 At September 30, 2011, total assets were approximately $18,000 and the total fund balance was approximately $18,000,

In 2009 the City, the Council, and the District entered into another intergovemmental agreement with the State of Louisiana to fimd Phase II of the Yokely Project. The total estimated cost of this phase of the project is $1,666,650, with the State's share being 70% of the cost or $1,166,650 and the local share of the project bemg 30% or $500,000. The City, the Council, and the Distnct are each responsible for one-third of the local share The Council has made payments totaling approximately $40,000 through 2011 The City is in charge of overseeing the project until completion and will mamtain financial information on the project which will be available from the City's Chief Financial Officer,

NOTE 16 - PENSION PLAN AND OTHER POST RETIREMENT BENEFITS

Pension Plan The Coimcil contributes to the Parochial Employees' Retirement System of Lomsiana (Plan A), a cost shanng multiple-employer public employee retirement system administered by a Board of Trustees consisting of seven members The System provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members and beneficianes. The System was established by the Louisiana legislature by Act 205 of 1952 and revised by Act 765 of 1979 The System issues a publicly available financial report that includes financial statements and required supplementary information This report may be obtained by calling the Parochial Employees' Retirement System of Louisiana at (225) 928-1361

Plan members are required to contribute 9.50% of their annual covered salary and the St. Mary Pansh Council is requu-ed to contribute at a rate of 15 75% of annual covered payroll The Council's actual contributions to the System for the years ending December 31,2011, 2010, and

59

NOTE 16 - PENSION PLAN AND OTHER POST RETIREMENT BENEFITS (continued)

2009 were approximately $748,000, $717,000 and $560,000, respectively, and were equal to the required contributions for each year

Other Post Retirement Benefits Background. The Council provides healthcare insurance for their retired employees Govemmental Accounting Standards Board (GASB) Statement No 45, Accounting and Fmanciai Reporting by Employers for Postemployment Benefits Other Than Pensions addresses the reporting requirements that should be followed for local govemments The Council has implemented these changes for the year beginmng, January 1,2008

Plan description. The Council's Retiree Medical Plan is a single-employer defined benefit healthcare plan admimstered by the Council. The plan was established by the Council through Ordinance No. 1379 to provide medical insurance benefits to eligible retirees and their dependents upon retirement. The plan does not issue a financial report

Funding Policy. Ordinance No 1379 provides the authority under which the obligations of the plan members (current employees, retirees and retu*ee's dependents), and the employer (Council) are established or may be amended No contribution is required by employees or retirees; a contribution equal to forty percent of the monthly health care insurance premium is required for each retu-ee's dependent For retirees, the Council pays 100% of their medical benefits and 60% of their dependent's benefits In 2011, the Council's portion of health care fimding cost for retired employees totaled $276,000 The Council has elected to fimd the plan on the "pay-as-you-go" basis, that is paying retiree's and their dependent's insurance premiums when due

Annual OPEB Cost and Net OPEB Obligation. The Parish's annual other post employment benefit (OPEB) cost (expense) is calculated based on the aimual required contribution of the employer (ARC), an amount actuanally determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfimded actuanal liabilities over a penod not to exceed thirty years The followmg tables show the components of the Pansh's armual OPEB cost for the year, the amount actually contributed to the plan, the percentage of aimual OPEB cost contributed to the plan, and the net OPEB obligation at the end of the year.

Annual required contribution $1,493,000 hiterest on net OPEB obligation 120,000 ARC Adjustment (173.000)

Annual OPEB cost (expense) 1,440,000 Contributions made (298,000)

Increase m net OPEB obligation 1,142,000 Net OPEB Obligations - Beginmng of year 2.987,000 Net OPEB Obligations - End of year $4.129.000

60

NOTE 16 - PENSION PLAN AND OTHER POST RETIREMENT BENEFITS (contmued)

Year Ended

12/31/09

12/31/10

Annual OPEB Cost

$1,070,000

1,436,000

% of annual OPEB Cost Contributed

11 8%

19.2%

Net OPEB Oblieation

$1,861,000

2,987,000

12/31/11 1,493,000 20,0% 4,129,000

Funding Status and Funding Progress. As of January 1, 2010, the most recent actuarial valuation, the actuarial accrued liability (AAL) was $11,930,000, all of which was unfunded The covered payroll (armual payroll of active employees covered by the plan) was $6,269,000, and the ratio of the unfunded actuanal accrued liability to the covered payroll was 192 4% As of December 31,2011, the plan had no assets and hence had a funded ratio of zero.

Actuarial valuations of the benefits plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Actuarial determined amounts are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future The schedule of fimding progress presented as required supplemental information following the notes to the financial statements presents information that shows whether the actuanal value of plan assets is increasing or decreasing relative to the actuarial accrued liabilities for benefits

Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the Council and plan members) and mclude the types of benefits provided at the time of valuation and the histoncal pattern of sharing of benefits costs between the employer and plan members to that pomt The projection of benefits for financial reporting purposes does not exphcitiy mcorporate the potential effects of legal or contractual fimdmg limitations on the pattern of cost sharmg between the Council and plan members in the future. The actuanal methods and assumptions used include techniques that are designed to reduce the effect of short term volatility in actuarial accrued liabilities and the actuarial value of assets consistent with the long term perspective of actuanal calculations

In the January 1, 2010, actuanal valuation, the projected unit credit cost method was used The actuarial assumptions included a 4% investment rate of return (net of admimstrative expenses), which is based on the expected long term mvestment returns on the Council's own investments, and on an imtial annual medical trend cost rate of eight percent, and scalmg down to an ultimate rate of five percent The unfunded actuarial accrued liability is being amortized over thirty years using the level dollar amortization method on an open basis

NOTE 17 - COMMITMENTS

In late 2006, the Council entered into an agreement with the Belle of Orleans, LLC (Belle), a riverboat casino approved by pansh voters to be berthed in and operate in Amelia, Louisiana, as the Amelia Belle In lieu of the Council imposing an admission fee upon the Belle's patrons, the Belle has agreed to pay fees to the Council based upon a percentage of its net gaming proceeds for a penod often years Presentiy, the fee is $1,500,000 annually.

The Council entered into a cooperative endeavor agreement with the Law Enforcement District of the Pansh of St. Mary, State of Louisiana (the District) and the Sheriff of St Mary Pansh, Louisiana (the Sheriff). Under this agreement, the Council will transfer a portion of the money received from the Belle to the Sheriff The Sheriff is to provide additional law enforcement services and traffic control activities in certain areas The Council is to pay the Shenff an armual amount of $225,000.

The Council entered into a cooperative endeavor agreement with the Office of the Distnct Attomey of the Sixteenth Judicial District (District Attomey). Under this agreement, the Council mil transfer a portion of the money received from the Belle to the District Attomey for the additional services and activities provided by the Distnct Attomey The Council is to pay the Distnct Attomey an annual sum in the amount of $50,000 which is to be paid on a monthly basis startmg m June 2007.

The Council was awarded a federal grant for approximately $19,500,000 for various infi-astructure and housing redevelopment and rehabilitation projects throughout the parish The grant runs through 2018 No significant activity has taken place m 2011 The Council will be performing these projects in future years.

NOTE 18 - SOLID WASTE LANDFILL CLOSURE AND POST CLOSURE CARE COSTS

The Council provides for the collection and disposal of garbage through the operation of the Reduction and Transfer Fund, an enterprise fimd. As part of this operation, a landfill composed of five areas is maintained. The operation of the landfill is subject to certain federal and state regulations In 1989, the Council ceased operating and closed approximately 40 acres of the landfill which composed areas one and two

62

NOTE 18 - SOLID WASTE LANDFILL CLOSURE AND POST CLOSURE CARE COSTS (continued)

Area 4 was permitted m 2002 and began operations in 2008, it includes approximately 65 acres and is the mam portion of the Parish landfill currently in operation. Area 3A which totals approximately 7 acres is restricted to receiving construction waste and debris and has been used pnmarily for debns from storms. Area 3 covers approximately 40 acres, in 2008 it reached capacity and was capped on an interim basis, it is now available for additional use

Since the Council accepted solid wastes at the landfill site after October 1993, the Council will be responsible for meeting state and federal requirements on the portions of the landfill which operate after that time. Those reqmrements mandate not only ngid landfill closure requirements but also monitoring, remediation and containment requirements for thirty years after closure During 2011 management, with the assistance of consulting engineers, has re-estimated costs for closure of the landfill to be approximately $7,080,000 Costs for postclosure care, monitoring, and containment have been estimated to be approximately $1,470,000 ($49,000 per year for thirty years). These new estimated costs are based upon new materials and technologies developed and approved for landfill closure and post closure monitoring

GASB statement No. 18, which specifies the accounting method to be utilized by goverrmients that operate landfills, became applicable to the Council's operations effective January 1, 1994. GASB No. 18 requires that landfills estimate the total cost of closure and post closure care. Further that the landfill recogmze a portion of these estimated closure and postclosure costs over the operating life of the landfill These closure and postclosure costs should be recognized as a liability and charged as an expense of operations of the landfill each year based upon the amount of landfill space utilized in that year as compared to the total available landfill space.

GASB No. 18 also requires that current costs be adjusted when changes in closure or post closure care plans or landfill operating conditions increase or decrease the estimated costs. The new estimates based upon the new technologies mentioned above resulted in an estimated reduction m landfill closure costs of $3,100,000 and a reduction in landfill post closure care costs of $434,000 for a total reduction of $3,534,000 in ultimate landfill closure and post closure care costs over the life of the landfill The amount of this reduction in estimated costs related to the portion of the landfill used through 2011 is $2,252,000 This amount, which increases net assets, is reported as a Special Item on the Statement of Revenues, Expenses and Changes m Net Assets of the Reduction and Transfer Fund which operates the landfill.

As of December 31, 2011, the Council has recogmzed $3,364,000 as the total estimated closure and post closure care costs based upon the actual utilization through year end compared to estimated available usable landfill space as follows. Area 3 - 88%, Area 3A - 20%, and Area 4 -12%. This leaves approximately $5,186,000 of estimated closure and post closure care costs remaimng to be recognized m future years

It is estimated that the landfill will reach its capacity m approximately 34 years at the current rate of use

63

NOTE 18 - SOLID WASTE LANDFILL CLOSURE AND POST CLOSURE CARE COSTS (continued)

Estimated costs for closure and post closure are based on estimated costs at the cunent time and under the current regulations Future changes in inflation, technology, or regulating requirements could cause these estimated costs to increase or decrease

The Council meets the federal and state financial assurance requirements for operations of landfills, under the financial test or "self-msurance" method The Council has formally set aside $1,381,000 in cash and investments for closure or post closure care costs, which is reported as restricted assets on the balance sheet of the Reduction and Transfer Fund

NOTE 19 • RELATED PARTY

The Council received payment from the St Mary Pansh Sales Tax Department of approximately $10,000 for office rental payments m 2011

The Council made the following payments from the Wards 5 & 8 Sales Tax Fund for recreation related activities dunng the year

St Mary Pansh Recreation Distnct No. 3 $65,000 St Mary Pansh Recreation District No 4 54,000

Payments from the Combined Sewer Construction Fund for sewer related projects to related parties for 2011 were as follows

St Mary Pansh Sewerage District No 11 $ 11,000 St Mary Pansh Sewer Distnct No 7 16,000

Payments made to related parties from Sales Tax, Wards 1,2,3,4,7&10 for vanous projects for 2011, were as follows

St Mary Parish Recreation District No 5 $53,000 St. Mary Parish Recreation Distnct No 7 24,000

The Council made grant payments of $250,000 to the Atchafalaya Golf Course during the year

See Note 8 for the balances m the vanous payable and receivable accounts at December 31, 2011

64

NOTE 20 - RISK MANAGEMENT AND CONTINGENCIES

The Council is exposed to various nsks of loss related to torts, theft or damage to assets, errors and omissions, injuries to employees and natural disasters. In addition, the Council provides certain medical and health care to pansh pnsoners The Council has purchased commercial insurance to protect against loss from most of these perils However, it is the policy of the Council to retain the risk of loss related to the costs of health care benefits for pnsoners

During the year ended December 31, 1996, the Council adopted the provisions of GASB Statement No. 10, which establishes accounting and reporting standards for nsk and insurance related activities of govemmental entities In accordance with the provisions of this statement, the Council is reporting its risk retention activhies m its General Fund

There are no significant reductions in msurance coverages from prior years in the Council's insurance

Settlements in the prior three years have not exceeded insurance coverages.

The Council uses a combmation of past history and specific claim analysis to estimate its hability for unpaid claims The Council does not discount the amount of claims to present value, nor has the Council purchased any annuity contracts to settle estimated liabilities

Changes m the Council's estimated claims liabilities for years ended December 31,2010 and 2011 were:

Liability balance, Jan 1,2010 $22,000 Claims & changes in estimate 420,000 Claims paid (42L000)

Liability balance, Dec 31,2010 21,000 Claims & changes in estimate 592,000 Claims paid (580,000)

Liability balance, Dec 31, 2011 $ 33.000

The total expenditures reported by the Council for claims related to retained nsk for the year ended December 31,2011 totaled $592,000

The Council participates m a number of federally assisted programs These programs are audited in accordance with the Single Audit Act of 1984. Audits of prior years have not resulted in any significant disallowed costs, however, grantor agencies may provide for fiirther examinations Based on pnor experience, the Council's management believes that further examinations would not result in any matenal disallowed costs.

65

REQUIRED SUPPLEMENTAL INFORMATION

ST. MARY PARISH COUNCIL REQUIRED SUPPLEMENTAL INFORMATION

Schedule of Funding Progress for the Council's Retiree Healthcare Plan

Actuanal Actuarial Actuarial Accrued Unfunded Valuation Value of Liability

UAAL as Annual a

AAL Funded Covered Percentage Date Assets (AAL)— (UAAL) Ratio Payroll

(a) Unit Cost

(b) (b-a) (a/b) (c)

of Covered Payroll (Fb-al/c)

1/1/2008 0 $ 8,721,000 $ 8,721,000 0 $ 6,201,000 140.6%

1/1/2010 0 $11,930,000 $11,930,000 0 $6,269,000 192 4%

Unaudited

66

SUPPLEMENTARY INFORMATION NON-MAJOR GOVERNMENTAL FUNDS

ST. MARY PARISH COUNCIL COMBINING FINANCIAL STATEMENTS NON-MAJOR GOVERNMENTAL FUNDS

By Govemmental Fund Type

SPECIAL REVENUE FUNDS

Special revenue fimds are used to account for the proceeds of specific revenue sources that are earmarked for expenditures for specified purposes.

DEBT SERVICE FUNDS

Debt Service Funds are used to account for the accumulation of resources for, and the payment of long-term debt principal, interest and related costs.

CAPITAL PROJECTS FUND

The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by propnetary fimds).

67


Combining Balance Sheet Nonmajor Govemmental Funds - By Fund Type

December 31,2011

ASSETS

Cash and cash equivalents Investments Receivables (net of allowances

for uncollectibles) Due from other governments Advance to other funds

Total assets

Special Revenue Funds

$508,249 1,314,909

18,734 617,422 900,535

$3,359,849

Debt Service Funds

$2,607,849 756,967

17,828 977,010

1,516,245

$5,875,899

Capital Projects

Fund

$479,356

$479,356

Total Nonmajor

Govemmental Funds

$3,116,098 2,071,876

36,562 1,594,432 2,896,136

$9,715,104

LIABILrriES AND FUND EQUITY

Liabilities Accounts payable Accmed liabilities Deferred revenue Due to other govemments Advance from other funds

Total liabilities

Fund equity Fund balances

Restricted for Use in specific geographic areas Debt services

Committed Assigned for

General Govemment Public safety Public works Culture & recreation Health & welfare Urban redevelopment & housing Debt services Capital projects

Unassigned

Total fund equity

Total liabilities and fiind equity

$187,035 13,887

-

10,000 467,236

678,158

1,183,482

114,033

598,484 126,452 149,958 225,989 305,491 205,885

(228,083)

2,681,691

$3,359,849

$835

4,649

799,499

804,983

2,919,379

2,151,537

5,070,916

$5,875,899

$5,680

5,680

473,676

473,676

$479,356

$193,550 13,887 4,649

10,000 1,266,735

1,488,821

1,183,482 2,919,379

114,033

598,484 126,452 149,958 225,989 305,491 205,885

2,151,537 473,676

(228,083)

8,226,283

$9,715,104

68



Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Govenunental Funds - By Fund Type

For the Year Ending December 31, 2011

Total

REVENUES

Taxes Sales and use Ad Valorem

intergovernmental revenues Federal grants State grants Local grants

Riverboat fees Special assessments Licenses & Permits Fees, Charges, & Commission Investment eamings & mterest Other revenues

Total revenues

EXPENDITURES

Current General govemment Public safety Public works Culture & Recreation Health & Welfare Bad debts

Capital outlay Debt service

Principal Interest Fees

Total expenditures

Excess (deficiency) of revenues over (under) expenditures


Proceeds from bonds Operatmg translers in Operating transfers out


Excess of revenues and other sources over expenditures and other uses

Fund balance at beginning of year as previously stated

Prior period adjustment

Furej balance at beginning of year as restated

Residual equity transfer


Special Revenue fWlfiS

$1,659,052

1,097.036 752,388 84.095

1,500,000

21,460 474,656

3.321 3,124

5,595,132

312.125 1.815,181

274.504 397.855

1,778,177

119.062

4,696,904

898,228

504.000 (1.251.890)

(747.890)

150.338

2.603,799

(72,446)

2,531,353

.

$2,681,691

Debt Service fwids

$1,945,717 612,198

5.963

6,096 90

2.570.064

90.296

2,476.362 1,123,092

83,296

3,773,046

(1,202.982)

7,465,000 3,034,053

(8,764.237)

1,734,816

531,834

4,455.459

-

4,455,459

83,623

$5,070,916

Capital Projects

Fund

$500

500

303,304

303,304

(302.804)

-

-

(302,804)

776,480

-

776,480

.

$473,676

Nonmajor Govemmental

Funds

$3,604,769 612,198

1.097,036 752,388 84,095

1.500.000 5.963

21,460 474.656

9.917 3,214

8.165,696

312,125 2,118,485

274,504 397.855

1.778.177 90,296

119,062

2,476,362 1.123,092

83,296

8,773.254

(607,558)

7.465,000 3,538,053

(10,016,127)

986,926

379,368

7.835,738

(72,446)

7.763,292

83,623

$8^26.283

69

The accompanymg notes are an integral part of these fmanciai statements


COMBINING FINANCIAL STATEMENTS & BUDGETARY COMPARISON SCHEDULES NON-MAJOR SPECLAL REVENUE FUNDS

GAMING RECEIPT FUND

The Gaming Receipt Fund is used to account for money received under an agreement with the Amelia Belle Riverboat Casino.

COMMUNITY GRANT FUND

The Commumty Grant Fund is used to account for money received from the Chitimacha Tribe under the commumty grant agreement which ended in 2007

WARDS 5 AND 8 SALES TAX FUND

The Wards 5 and 8 Sales Tax Fund accounts for the proceeds of the three-tenths of one percent sales and use tax levied withm Wards 5 and 8 to acquire and maintain lights, public works, fire protection, recreational, and health facilities.

WARDS 1, 2, 3,4, 7, AND 10 SALES TAX FUND

The Wards 1,2, 3,4, 7, and 10 Sales Tax Fund accounts for the proceeds of the three-tenths of one percent sales and use tax levied within these wards to acqmre and maintain lights, public works, fire protection, recreational, and health facilities

HURRICANE LILI FUND

The Hurricane Lili Fund accounts for money to be received from FEMA for expenditures incurred as a result of damages sustained due to Hurricane Lili This fimd had no activity for the year.

JAIL OPERATING AND MAINTENANCE FUND

The Jail Operating fund is used to account for the proceeds of the one-half of one percent sales and use tax levied in St. Mary Parish to be used solely for the purposes of paying the cost of operating and maintaming jail facilities and mimmum secunty facilities of the Pansh

70

16th JDC - ST MARY PARISH DRUG COURT FUND

The 16th JDC - St. Mary Parish Drug Court fund accounts for the operation of the adult and juvenile outpatient drug court program funded by federal and state grants from the Louisiana Supreme Court

JOB READINESS FUND

The Job Readiness Fund is used to account for Federal and State funds received for the purpose of providing work readiness trainmg and job development/placement for drug court clients and inmates in the Sixteenth Judicial District

BOAT LANDING FUNDS

The various boat landing funds account for funds received from the sale of permits and launch fees to users of the various boat landings located throughout St Mary Pansh

LOCAL LAW ENFORCEMENT BLOCK GRANT #2

The Local Law Enforcement Block Grant #2 fund accounts for the proceeds and expenditures resulting from a grant from the U.S. Department of Justice, This grant is for reducing crime and improving public safety

HOUSING PROGRAM

The Housing Program admimsters the Section 8 Housing Program which covers all of St. Mary Pansh, excluding Morgan City.

DWI COURT

The DWI Court Fund is used to mcrease public safety by ensuring DWI offenders are held accountable for their behavior.

DWI COURT - PATIENT FUND

The DWI Court Patient Fee Fund is used to account for fees received and other expenses related to participants m the DWI Court Program.

OJP ENHANCEMENT GRANT FUND

The OJP Enhancement Grant Fund is used to account for operation of a specialty track for 18-25 year olds in drug court

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77


Budgetary Companson Schedule Gaming Receipt Fund


REVENUES Local grants Riverboat fees Investment eamings & interest

Total revenues

Original Budget

$37,124 1,500,000

1,500

1,538,624

Final Budget

$40,019 1,500,000

1,500

1,541,519

Actual

$36,896 1,500,000

1,163

1,538,059


Positive (Negative")

($3,123)

(337)

(3,460)

EXPE?ÎTURES

Current General govemment Public safety Public works Culture & Recreation Health & Welfare

Total expenditures

239,500 325,500

61,000 7,500

105,000

239,500 325,500

63,895 76,960

105,000

239,500 343,498

62,353 76,960 5,000

-(17,998)

1,542 -

100,000

738,500 810,855 727,31 83,544

Excess (deficiency) of revenues over (under) expenditures 800,124 730,664 810,748 80,084

OTHER FINANCING SOURCES (USES) Operatmg transfers out

General Fund Jail Operatmg & Maintenance Fund Excess Revenue Bond Sinking

Total other financmg sources (uses)




(170,000) (178.000) (367,592)

(715,592)

84,532

488,718

$573,250

(170,000) ($178,000) (367,592)

(715,592)

15,072

617,361

$632,433

(170,000) (178,000) (367,592)

(715,592)

95,156

617,361

$712,517

-

-

80,084

$80,084

78

The accompanymg notes are an mtegral part of these fmanciai statements


Budgetary Comparison Schedule Community Grant Fund


Original Budget

Final Budget Actual


Positive (Neeative)

REVENUES

Investment eamings & interest

Total revenues

EXPENDITURES

Current Public works

Street lighting

Total expenditures



Operating transfers in General Fund

Total other financmg sources (uses)


$20,000

20,000

(20,000)

20,000

20,000

$175

75

20,000

20,000

(19,825)

20,000

20,000

175

$188

188

17,923

17,923

(17,735)

20,000

20,000

2,265

$i:

2,077

2,077

2,090

2,090



134,000 147,693 147,693

$134,000 $147,868 $149,958 $2,090

79



Budgetary Companson Schedule Wards 5 & 8 Sales Tax Fund


REVENUES

Taxes Sales and use

Investment eamings & interest

Total revenues

EXPENDITURES

Current General govemment Public safety

Fire fighting Public works

Street lightmg Wax Lake East Drajnage Djstrjct Waterworks Djst #5

Culture & Recreation Bayou Vista Recreation Area Town of Berwick Recreation Distna #3 Recreation District #4

Total expenditures


Original Budget

Final Budget Actual


Positive fNegative")

$277,000 1,150

278,150

$345,000 800

345,800

$335,425 793

336,218

3,300

10,000

55.000 5.000

38,000 3,000

65,000 54,000

233,300

3,300

19,555

55,000 5,000

12,601

38,000 3,000

65,000 54,000

255,456

1,659

18,083

47,517 3,461

12,600

36,250 3,000

65,000 53,528

241,098

($9,575) (7)

(9,582)

1,641

1,472

7,483 1,539

1,750

13,885

44,850 90.344 95,120 4,303



536,820

$581,670

628.912

$719,256

628,912

$724,032 $4,303

80



Budgetary Comparison Schedule Wards 1, 2, 3, 4, 7, & 10 Sales Tax Fund For the Year Ended December 31, 2011

Onginai Budaet

Final Budget Actual


Positive (Negative)

REVENUES

Taxes Sales and use Local grants

Investment eamings & interest Other revenues

Total revenues

EXPENDITURES

Current General govemment Public safety

Fire fighting Aduh Correctional Institute

Public works Water & Sewer #4 Sidewalks & crosswalks Street lighting Sewerage

Culture & Recreation Elizabeth B Davis Park Hebert-Washington Park City of Franklin Baldwin & Charenton Recreation St Joseph Recreation Area Sorrell Park Other

Capital outlay Centerville Park Sorrell Park

Total expenditures


Fund balance at beginmng of year


$367,000

1,200

368,200

50,523 1,500

. 10,000

125,800 27,000

87,034 68,933 3,333

100 4,500

-93,695

-

472,418

(104,218)

361,807

$257,589

$330,000 36,088

500

366,588

46,975

50,523 1,500

12,000 -

120,800 -

52,034 35,233 7,833

100 4,500

-93,695

4,000 5,000

434,193

(67,605)

389,683

$322,078

$388,680 36,088

461 300

425,529

21,975

41,523 1,500

11,862

118,788 -

21,071 27,193 4,333

5,280 300

93,826

3,111 5,000

355,762

69,767

389,683

$459,450

$58,680 -

(39) 300

58,941

25,000

9,000 -

138

2,012

30,963 8,040 3,500

100 (780) (300) (131)

889 -

78,431

137,372

-

$137,372



Budgetary Companson Schedule Jail Operating & Maintenance Fund


Original Budget

Final Budget Actual


Positive flNJepative^

REVENUES

Taxes Sales and use

Fees, Charges, & Commission Investment eamings & interest

Total revenues

EXPENDITURES

Current Public safety

$850,000 404,000

(1,000)

$950,000 364,000

(1,000)

$934,947 400.474

(526)

($15,053) 36,474

474

1,253,000 1,313,000 1,334,895


Fund balance at begmning of year

Fund balance (deficit) at end of year

276,891

872

$277,763

84,891

(84,177)

$714

(90.180)

(84,177)

($174,357)

21,895

Administration Adult Correctional Institution Cost for Juvenile Pnsoners Aduh Con^tional Institution - Morgan City Jail

Total expenditures



Operating transfers m General Fund Gaming Receipt Fund

Operating transfers out Jail Sinking Fund Jail Reserve Fund


98,000 715,983 40,000

135.000

988.983

264.017

276.000 178.000

(420,120) (21,006)

12,874

98,000 947,983 80.000

115,000

1,240,983

72,017

276,000 178,000

(420,120) (21,006)

12,874

88,155 1,096,614

97,990 120,018

1,402,777

(67,882)

276,000 178,000

(453,977) (22,321)

(22,298)

9,845 (148,631) (17,990)

(5,018)

(161,794)

(139,899)

33,857 1,315

35,172

(175.071)

($175,071)

82



Budgetary Companson Schedule 16th JDC - St Mary Parish Drug Court For the Year Ended December 31, 2011

REVENUES

Federal grant State grant Local grant Patient fees

Total revenues

Onginal Budget

$163,125 936.000

1,099,125

Final Budget

$291,332 797.866

30.000

1,119,198

Actual

$545,561 589.609

11,111 32.674

$1,178,955


Positive fNeeative)

$254,229 (208,257)

11.111 2.674

59,757

EXPENDITURES

Current Health and welfare

Personal services and benefits Operating services Supplies Professional services Lab fees

Total expenditures





453.167 163.191 83,643

271,500 108,200

1,079,701

19.424

19,424

109,524

$128,948

428,867 156,591 76,193

322,900 113,950

1.098.501

20,697

20,697

109,524

$130,221

581.558 115,884 88,852

250,053 117.151

1.153,498

25,457

25,457

109,524

$134,981

(152,691) 40,707

(12,659) 72,847 (3,201)

(54,997)

4,760

4,760

-

$4,760

83

The accompanymg notes are an mtegral part of these financial statements


Budgetary Companson Schedule Job Readiness


REVENUES Intergovernmental Revenues

Federal Grants State Grants

Interest Eammgs Total Revenues

EXPENDrrURES

Current Health & Welfare

Total expenditures


Fund balance at the beginmng of year

Fund balance at the end of year

Ongial Budget

$100,000 20.000

1,000 121,000

Final Budget

$60,000 2,530

200 62,730

Actual

$63,525 17,193

206 80,924

Vanance with Fmal Budget

Positive (Neeative)

$3,525 14,663

6 18,194

82,121 82,12:

82.121 82.121

92,523

92.523

38,879 (19,391) (11,599)

220,877 168,455 168,455

$259,756 $149,064 $156,856

(10.402) (10,402)

7,792

$7,792

The accompanying notes are an mtegral part of these financial statements

84


Budgetar>' Comparison Schedule Boat Landing Permit Fund


REVENUES

Licenses & Permits Investment eamings & mterest

Total revenues


Operating transfers out Jesse Fontenot Memorial Boat Landmg Fund


Original Budeet

$20,000 200

20,200

-

Final Budget

$20,000 350

20,350

(30.000)

(30,000)

Actual

$21,460 52

21,512

(30,000)

(30,000)

Variance with Fmal Budget

Positive (Negative)

$1,460 (298)

1,162

-

Excess of revenues and other sources over expenditures and other uses

Fimd balance at beginning of year


20,200

47,142

(9,650)

30,524

$67,342 $20,874

(8,488)

30,524

$22,036

1,162

$1,162

85



Budgetary Comparison Schedule Lawrence J Michel, Jr Memorial Boat Landing Fund


REVENUES


Total revenues

Onginal Budget

$1,200 -

1,200

Final Budget

$1,200 (15)

1,185

Actual

$1,267 (15)

1,252


Positive (Negative)

$67 -

67

EXPENDITURES


Capital outlay Culture & Recreation

Total expenditures

55,765

55,765

7,800

1,000

8,800

7,800

666

8,466

334

334

Excess (deficiency) of revenues over (under) expenditures (54,565) (7,615) (7,214) (267)


Operating transfers out General Fund


(15,000)

(15,000)

(15,000)

(15,000)

(15,000)

(15,000)

Excess (deficiency) of revenues and other sources over (under) expendimres and other uses

Fund balance (deficits) as previously stated

Pnor penod adjustment



(69,565) (22,615) (22,214) (267)

70,765

70,765

$1,200

71,045

71,045

$48,430

71,045

(72.446)

(1,401)

($23,615)

(72,446)

(72,446)

($72,713)

86



Budgetary Comparison Schedule Joe C Russo Boat Landing Fund

For the Year Ended December 31.201

REVENUES Fees, Charges, & Commission Investment eamings & interest

Total revenues

Onginal Budget

$3,500 10

3,510

Final Budget

$3,500 20

3,520

Actual

$3,236 20

3,256


Positive (Negative)

($264) 0

(264)

EXPENDITURES


Total expenditures




30,104 1,502 1,165 337

30,104

(26,594)

30.104

$3,510

1,502

2,018

14,002

$16,020

1,165

2,091

14,002

$16,093

337

73

-

$73

87

The accompanying notes are an integral part of these financial statements.


Budgetary Comparison Schedule Jesse Fontenot Memorial Boat Landing Fund

For the Year Ended December 31. 2011

Onginal Budget

Final Budget Actual


Positive (Negative)

REVENUES

Intergovemmental revenues Federal grants Fees, Charges, & Commission Investment eamings & interest

Total revenues

$12,000 1,000

13,000

$14,321 12,000

(175)

$14,322 13,924

(161)

$1 1,924

14

26,146 28,085 1,939

EXPENDITURES Capital outlay

Culture & Recreation

Total expenditures

5,000

5,000

54,707

54,707

80,032

80,032

(25,325)

(25,325)

Excess (deficiency) of revenues over (under) expenditures 8,000 (28,561) (51,947) (23,386)

OTHER FINANCING SOURCES Boat Landing Permit Fund


30,000

30,000

30,000

30,000

Excess (deficiency) of revenues and other sources over (under) expenditures and other uses 8,000 1,439 (21,947) (23,386)

Fund balance at beginning of year 5,000 (697) (697)

Fund balance (deficit) at end of year $13,000 $742 ($22,644) ($23,386)

88



Budgetary Comparison Schedule Marcel Boat Landing Fund

For the Year Ended December 31. 2011

REVENUES

Fees. Charges, & Commission Investment eamings & interest

Total revenues

Onginal Budget

$8,000 250

8,250

Final Budget

$8,000 250

8,250

Actual

$8,967 130

9,097


Positive (Negative)

$967 (120)

847

EXPENDITURES


Total expenditures

8,000

8,000

2,000

2,000

,040

1,040

960

960

Excess (deficiency) of revenues over (under) expenditures 250 6,250 8,057 1,807


Operating transfers out General fund


(15,000)

(15,000)

(15,000)

(15,000)

(15,000)

(15,000)

Excess (deficiency) of revenues and other sources over (under) expenditures and other uses (14,750) (8,750) (6,943) 1,807



100,000

$85,250

101,488

$92,738

101,488

$94,545 $1,807

89



Budgetary Comparison Schedule Qumtana Boat Landing Fund


REVENUES

Fees, Charges, & Commission Investment eammgs & interest

Total revenues

EXPENDITURES

Capital Outlay Culture & Recreation

Total expenditures


Fund balance at beginnmg of year


Original Budget

$9,000 400

9,400

196,788

196,788

(187,388)

196,788

$9,400

Fmal Budget

$2,000 125

2,125

42,500

42,500

(40,375)

69,796

$29,421

Actual

$1,389 104

1,493

28,714

28,714

(27,221)

69,796

$42,575


Positive (Negative)

($611) (21)

(632)

13,786

13,786

13,154

-

$13,154

90



Budgetary Comparison Schedule Jessie B Hayes Memorial Boat Landing Fund


REVENUES

Fees, Charges, & Commission Investment eamings & mterest

Total revenues

Original Budget

$2,500 50

2,550

Final Budget

$2,800 50

2,850

Actual

$3,083 46

3,129


Positive rNegative)

$283 (4)

279

EXPENDFTURES




2,550

32,619

$35,169

2,850

33,307

$36,157

3,129

33,307

$36,436

279

$279

91



Budgetary Companson Schedule Burguieres Boat Landing Fund


REVENUES


Total revenues

Onginal Budget

$2,500 10

2,510

Final Budget

$2,725 25

2,750

Actual

$3,329 28

3,357


Positive (Negative)

$604 3

607

EXPENDITURES

Capital ouday Culture & Recreation

Total expenditures




21,310

21,310

(18,800)

21,310

$2,510

11,395

11,395

(8.645)

21,395

$12,750

10,448 10,448

(7,091)

21,395

$14,304

947

947

1,554

-

$1,554

92



Budgetary Comparison Schedule Local Law Enforcement Block Grant # 2 Fund


Original Budget

Final Budget Actual

Variance with Fmal Budget

Positive (Negative)

REVENUES

Intergovemmental revenues Federal grants

Total revenues

40,000

40,000

$47,000

47,000

$50,639

50,639

$3,639

3,639

EXPENDITURES


Total expenditures 40,480

40,480

45,980

45,980

48,991

48,991

(3,011)

(3,011)

Excess (deficiency) of revenues over (under) expenditures 1,020 1,648 628

Fund balance (deficits) at begmnmg of year 565 (135) (135)

Fund balance (deficits) at end of year 565 $885 $1,513 $628


93


Budgetary Comparison Schedule Housing Program


REVENUES

Intergovemmental revenues Federal grants

hivestment eamings & interest Other revenues

Total revenues

EXPENDI'iURES

Current Urban redevelopment & housing

Housing assistance payments Administrative costs

Total expenditures

Original & Final Budget

$399,500

10,000

409,500

278,000 131,500

409,500

Actual

$417,124 875

2,824

420,823

259,470 127,654

387,124


Positive fNegative)

$17,624 875

(7,176)

11,323

18,530 3,846

22,376

Excess (deficiency) of revenues over (under) expenditures 33,699 33,699

Fund balance at beginning of year 172,186 113,941

Fund balance (deficit) at end of year $205,885 $147,640

94


REVENUES

Federal Grant Interest Eammgs

Total Revenue

EXPENDITURES


Budgetary Comparison Schedule DWI Court


Original Budget

Final Budget Actual

Vanance Final Budget

Postive (Negative)

$134,000

134,000

$140,000

140,000

$145,586 (56)

145,530

$5,586 (56)

5,530

Health & Welfare Total Expenditure

Excess of (deficiency) of revenues over (under) expenditures)

Fund balance at the beginning of year

Fund balance (deficits) at the end of year

117,484

117,484

16,516

$16,516

117,484 132,671 117,484

22,516

(19,005)

$3,511

132,671

12,859

(19,005)

($6,146)

(15,187)

(15,187)

($9,657)

($9,657)

95



Budgetary Comparison Schedule DWI Court - Patient Fee Fund


REVENUES Fees, Charges, & Commission Investment eammgs & interest

Total revenues

EXPENDITURES Current

Health & Welfare

Total expenditures

Original Budget

$1,000 -

1,000

-

-

Final Budget

$5,700 -

5,700

200

200

Actual

$6,313 13

6,326

175

175


Positive fNegative)

$613 13

626

25 -

Excess (deficiency) of revenues over (under) expenditures 1,000 5,500 6,151 626

Fund balance at beginnmg of year 6,120 7,503 7,503

Fund balance (deficit) at end of year $7,120 $13,003 $13,654 $626

96



Budgetary Comparison Schedule OJP Enhancement Crrant


Original & Final

Budget Actual


Positive (Negative)

REVENUES Federal Grant

Total revenues

$5,865

5M5

$5,865

5,865

EXPENDITURES Current

Health & Welfare Total expenditures

16,055

16,055

7,186

7,186

$8,869

8,869

Excess (deficiency) of revenues over (under) expenditures (10,190) (1,321) 8,869

Fund balance at begmnmg of year

Fund balance (deficit) at end of year ($10,190) ($1,321) $8,869

97


ST. MARY PARISH COUNCIL COMBINING FINANCIAL STATEMENTS DEBT SERVICE FUNDS - NON MAJOR

SALES TAX BOND SINKING FUND

The Sales Tax Bond Sinking Fund accounts for the Council's share of a one percent sales tax which is to be used for the retirement of the 2005 bond issue totaling $1,255,000, the 2003 bond issue totaling $2,900,000, and the 2011 bond issue totaling $6,865,000., Any amounts accumulated in excess of debt service requirements can be used by the pansh for any lawful purpose.

SALES TAX BOND RESERVE FUND 1996,2003,2011

The Sales Tax Bond Reserve Fund 1996, 2003 is a reserve fund required by the 2005 $1,255,000 bond issue indenture, the 2003 $2,900,000 bond issue indenture, and the 2011 $6,865,000 bond issue indenture

THREE-FOURTHS PERCENT SALES TAX BOND RESERVE FUND

The Three-Fourths Percent Sales Tax Bond Reserve Fund is a reserve fund required by the $6,250,000 2005 Sewerage Sales Tax Bond issue indenture and the $3,750,000 2007 Sewerage Sales Tax Bond issue mdenture

THREE-FOURTHS PERCENT SALES TAX BOND SINKING FUND

The Three-Fourths Percent Sales Tax Bond Sinking Fund accumulates that portion of the three-fourths percent sales tax needed for the payment of 2005 $6,250,000 sewerage sales tax bond issue and 2007 $3,750,000 sewerage sales tax bond issue

LIBRARY GENERAL OBLIGATION 1996 SINKING FUND

The Library General Obligation Sinking Fund accoimts for the transfer of ad valorem taxes fi'om the Library Fund and payment of the 2005 $1,105,000, 2005 $1,975,000, and 2009 $2,500,000 of general obligation bonds

98

CERTIFICATES OF INDEBTEDNESS, (1997, 2000, 2002 A & B, 2007 A & B, and 2011) SINKING FUND

The Certificate of Indebtedness, (1997, 2000, 2008, and 2011) Fund accounts for the transfer of gaming receipts from the Gaming Receipt Fund and repayment of the $3,000,000 Public improvement Bonds and the transfer of revenues from the Road Construction and Mamtenance Fund for repayment of the $3,575,000 Road Refunding Bonds This fund also accounts for the transfer of revenues for the repayment of the $2,370,000 Public Parks and Recreation Refunding Bonds, the $800,000 Certificates of Indebtedness, the $1,200,000 Public Buildmg Bonds, the $425,000 Certificates of Indebtedness, the $75,000 Certificates of Indebtedness, the $300,000 Certificates of Indebtedness, and the $600,000 Certificates of Indebtedness.

PAVING FUNDS

The Debt Service Paving Funds account for the financing of construction of street pavmg improvements along certam streets withm the Parish with the property owners paying part of the cost.

JAIL SINKING FUND

The Jail Sinking Fund accounts for the payment of $3,490,000 Senes 2010 Jail Revenue and Refunding Bonds, and the transfer of excess revenues over expenditures from the Jail Operating Fund

JAIL RESERVE FUND

The Jail Reserve Fund is a reserve fund requked by the $3,490,000 Series 2010 Jail Revenue and Refunding Bonds

99

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102

ST. MARY PARISH COUNCIL FINANCIAL STATEMENTS

CAPITAL PROJECTS FUND - NON MAJOR

JAIL CONSTRUCTION FUND

The Jail Construction Fund accounts for the financing and construction of the new St Mary Parish Law Enforcement Center and renovations to the existing jail facility in the courthouse

103


Balance Sheet Nonmajor Capital Projects Fxmd

December 31,2011

ASSETS

Jail Construction

Fund

Investments $1 Advance to other funds 479,355

Total assets 479,356

LIABILITIES AND FUND EQUITY

Accounts Payable 5,680

Total liabilities 5,680

Fund equity Fund balances

Assigned for capital projects 473,676

Total fund equity 473,676

Total liabilities and fund equity $479,356

04

The accompanying notes are an integral part of these fmanciai statements


Statement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Capital Project Fund

For the Year Ending December 31,2011

Jail Construction

Fund REVENUES Investment eamings & interest $500

Total revenues 500

EXPENDITURES

Capital outlay Public safety 303,304

Total expenditures 303,304

Excess (deficiency) of revenues over (under) expenditures (302,804)

Fund balance at beginning of year 776,480

Fund balance at end of year $473,676

105

The accompanying notes are an mtegral part of these financjaJ statements

GENERAL SUPPLEMENTARY INFORMATION

St. Mary Parish Council Compensation Paid Council Members and Pansh President


Steve Bierhorst Gary Duhon Albert Foulcard Logan Fromenthal, Jr David Hanagnff Glen Hidalgo Craig Mathews Charles E Middleton Paul Naquin, Jr Kenneth Smgleton Kevm Voisin Charles A. Walters

Parish President

$ 10,158 9,600 9,642 5,400 5,400 5,400 5,400 5,400

12,000 5,400 5,400 5,400

$ 84,600

06

ST. MARY PARISH COUNCIL Schedule of Insurance Policies In Force For the Year Ended December 31, 2011

Coverage

Property and Extended Coverage

General Liability

Auto Liability Coverage

Public Entity Management Liability Coverage

Amounts or Limits

$22,683,430

$1,000,000

$1,000,000

$1,000,000

Expires

06/15/2012

12/31/2012

12/31/2012

12/31/2012

Comoanv

AXIS Surplus Ins Co

Ace American Ins Co

Ace American ins Co

Ace Amencan Ins Co

Public Entity Employment Practices (Liability Protection Coverage)

Employee Benefit Plans Administration (Liability Protection Coverage)

Workers' Compensation and Employer's Liability

Equipment Floater

Airport Liability

Ferry-Hull and Machinery

Feny-Protection & Indemnity

$1,000,000 12/31/2012 Ace American 1ns Co

$1,000,000

$1,000,000

$7,904,071

$1,000,000

$75,000

$1,000,000

12/31/2012

12/31/2012

06/15/2012

09/29/2012

05/16/2012

05/16/2012

Ace Amencan Ins Co

PGRMA

CNA Municipal Group

ACE Property & Casualty Insurance Co

Alianz Globbal

Lloyds' of London

Unaudited

07

SUPPLEMENTARY INFORMATION REQUIRED BY OMB CIRCULAR A-133

08L

St Mary Parish Council

Schedule of Expenditures of Federal Awards


FEDERAL GRANTOR/

PASS-THROUGH GRANTOR NAME/

PROGRAM TITLE

FEDERAL

CFDA REVENUE EXPENDrrURES

NUMBER RECOGNIZED INCURRED

U.S. Department of the Interior

Fish and Wildlife Service

Sport Fish Restoration Program

Bureau of Land Management

Payment in Lieu of Taxes

15 605 $ 14.322 $ 1,735

15 226 6,404

Bureau of Ocean Energy Management, Regulation and

Enforcement

Coastal Impact Assistance Program (ClAP)

Total U S Department of Interior

15 426 1,159.812 1.159,812

U.S. Department of Housing and Urban Development

Gulf of Mexico Energy Security Act (GOMESA)

Passed through Louisiana Office of Community

Development Disaster Recovery

Conmiuntty Development Block Grants/State's

Program and Non-Entitlement Grants in Hawaii

Passed through Louisiana Department of Social

Services Office of Community Services

14 None 737 737

Emergency Shelter Grants

Housing - Federal Housing Commissioner

Section 8 Housing Choice Vouchers

14231

14 871

19,813

425.612

19,813

387.127

Total U S Department of Housing and Urban Development L635 162 L_596,677

U.S. Department of Transportation

Federal Aviation Admininistration Airport Improvement

Program 20 106 39,365 39,365

Alcohol Traffic Safety and Drunk Driving Prevention Incentive Grant 20 601 145.586 131.419

Total U S Department of Transportation 184.95] 17P.784

U.S. Department of Energy

Passed through State of Louisiana - Department of

Natural Resources

ARRA - Energy Efficiency and Conservatioti Block

Grant Program (EECBG) 81 128 346,670

Tota! U S Department of Energy 346.670 346,670

FEDERAL GRANTOR/ PASS-THROUGH GRANTOR NAME/

PROGRAM TFTLE

FEDERAL CFDA REVENUE EXPENDrrURES

NUMBER RECOGNIZED INCURRED

U.S. Department of Education Office of Assistant Secretary for Special Educational

and Rehabilitation Services

Passed through Louisiana Rehabilitation Services

Rehabilitation Services Vocational Rehabilitation Grants to States K4 126 63,525 63,525

Total US Department of Education 63.525 63.525

Department of Homeland Security Passed through the Louisiana Department

of Military Affairs - Office of Emergency Preparedness

Disaster Grants • Public Assistance 97 036 653,597 653.597

Passed through State of Louisiana Office of State Police

Homeland Secunty Grant Program

Passed through Governor's Office of Homeland Security and Emergency Preparedness

Hazard Mitigation Grant

Total Department of Homeland Secunty

97 067 294.437

97 039 72,361

336.175

72.361

1,020,395 1.062,133

U.S. Department of Health and Human Services Cities Readiness Initiative Grant (CRI) 93 069 16,783

Passed through Louisiana Supreme Court Drug Court Office

Temporary Assistance for Needy Families (TANF) 93 558 545.561 545.561

Passed through Louisiana Office for Addictive Disorders

Substance Abuse and Mental Health Services Projects of Regional National Significance 93 243 274.853 274.853

Block Grants for Prevention and Treatment of Subastance Abuse

Total U S Department of Health and Human Services

U.S. pgparTipent pf JMgtl?? Juvenile Accountability Block Grant

Drug Court Discretionary Grant Program

Total US Department of Justice

Total Primary Govemment Federal Financial Assistance

93 959 8,li: 8.1i:

16 523

16 585

845,309

10,000

5.865

15,865

$ 5.292.415 $

828,526

10,000

7,187

17.187

5,247,049

08R

The accompanying notes are an integral part of this schedule


Notes to Schedule of Expenditures of Federal Awards For the Year Ended December 31,2011

Note 1 - SIGNIFICANT ACCOUNTING POLICIES

The accompanying schedule of expenditures of federal awards is a summary of activity of the Council's federal award programs presented on the basis of accoimting in accordance with generally accepted accountmg pnnciples for fund accounting.

Note 2 - DEPARTMENT OF HOMELAND SECURITY

The following is a detail of revenues and expenditures from the Department of Homeland Secunty

Disaster Grants - Public Assistance (CFDA 97 036)

Funds Revenue Expenditures General Fund - Mississippi River Flood $49,049 $ 49,049 Road Constmction and Mamtenance Fund - Mississippi River Flood 604,548 604,548

Total Public Assistance Grants $653.597 $653.597

Homeland Security Grant Program (CFDA 97 067)

The Homeland Secunty Grant Program is made up of two separate grants shown as follows.

Funds Revenue Expenditures

Emergency Management Performance Grants 2008 $132,811 $132,811 Emergency Management Performance Grants 2010 46,806 46,806 General Fund - State Homeland Secunty Grant Program 2009 114,820 114,820 General Fund - State Homeland Secunty Grant Program 2010 - 41.738

Total Homeland Security Grant Program $294.437 $336.175

Hazard Mitigation Grant (CFDA 97 0391

The Hazard Mitigation Grant is made up three separate grants shown as follows

Fund Revenue Expenditures

General Fund - Hazard Mitigation Grant $28,347 $28,347 General Fund - HMPG - Generators 4,018 4,018 General Fund - HMPG - Rep Loss Structures 39.996 39,996

Total Hazard Mitigation Grant $72.361 $72.361

109

INTERNAL ACCOUNTING CONTROL AND COMPLIANCE AND OTHER MATTERS

PITTS & MATTE ^ a corporation of

certified public accountants

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Chairman and Members of the Council St Mary Pansh Franklin, Louisiana

We have audited the accompanying financial statements of the govemmental activities, the business-type activities, each major ftmd, and the aggregate remaimng fund information, and the respective budgetary comparisons for the General Fund, Road Construction & Maintenance Fund, and Samtation Fund of the St Mary Parish Council (Council), as of and for the year ended December 31, 2011, which collectively comprise the basic financial statements of the Council's pnmary govemment and have issued our report thereon dated June 15, 2012 We conducted our audit in accordance with auditing standards generally accepted in the Umted States of Amenca and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General of the United States

Intemal Control Over Financial Reporting

In planmng and performing our audit, we considered the Council's intemal control over financial reporting as a basis for desigmng our auditing procedures for the purpose of expressmg our opmion on the financial statements, but not for the purpose of expressing an opmion on the effectiveness of the Council's intemal control over financial reporting Accordingly, we do not express an opimon on the effectiveness of the Council's intemal control over fmanciai reporting

A deficiency in intemal control exists when the design or operation does not allow management or employees, m the normal course of performing their assigned functions, to prevent, or detect and conect misstatements on a timely basis A matenal weakness is a deficiency, or a combination of deficiencies, in intemal control such that there is a reasonable possibility that a matenal misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis

10

p o box 2363 - morgan city, lomsiana 70381-2363 - (985) 384-7545

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

Compliance and Other Matters

As part of obtaimng reasonable assurance about whether the Council's financial statements are free of matenal misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opmion The results of our tests disclosed instances of noncompliance that are required to be reported under Govemment Auditing Standards which are described in the accompanymg schedule of findmgs and questioned costs as items 2011-1 and 2011-2.

The Council's response to the findings identified m our audit are described in the accompanymg schedule of findings and questioned costs We did not audit the Council's response and, accordingly, we express no opimon on it.

This report is intended solely for the use of management, the Finance Committee of the Council, federal awarding agencies, pass-through entities, and the Legislative Auditor of the State of Louisiana and is not intended to be and should not be used by anyone other than these specified parties However, under Louisiana Revised Statute 24:513, this report is considered a public record and may be distributed by the Legislative Auditor

CERTIFIED PUBLIC ACCOUNTANTS

June 15,2012

111

PITTS & MATTE m. a corporation of certified public accountants

INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR

PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

Chairman and Members of the Council St Mary Pansh Franklin, Louisiana

Compliance

We have audited the St Mary Pansh Council's (Council) compliance with the types of compliance requirements described in OMB Circular A-133 Compliance Supplement that could have a direct and matenal effect on each of the Council's major federal programs for the year ended December 31, 2011. The Council's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of fmdings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the Council's management Our responsibility is to express an opinion on the Council's compliance based on our audit

We conducted our audit of compliance m accordance with auditmg standards generally accepted in the Umted States of Amenca, the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General of the United States, and OMB Circular A-133. Audits of States. Local Govemments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance reqmrements referred to above that could have a direct and material effect on a major federal program occurred An audh includes examining, on a test basis, evidence about the Council's compliance with those requirements and performmg such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opmion Our audit does not provide a legal determination on the Council's compliance with those requirements

In our opimon, the Council, complied, m all matenal respects, with the requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2011

112

p o box 2363 - morgan cjtyjouisiana 70381-2363 - (985)384-7545

Intemal Control Over Compliance

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

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

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

This report is intended solely for the information and use of management, the Finance Committee of the Council, federal awarding agencies, pass-through entities and the Legislative Auditor of the State of Louisiana and is not intended to be and should not be used by anyone other than these specified parties However, under Louisiana Revised Statute 24 513, this report is considered a public record and may be distnbuted by the Legislative Auditor

/%s / / ^ ^ ^ CERTIFIED PUBLIC ACCOUNTANTS

June 15, 2012

113

ST. MARY PARISH COUNCIL SCHEDULE OF FINDINGS AND QUESTIONED COSTS


A SUMMARY OF AUDIT RESULTS

1. The auditors' report expresses an unqualified opinion on the basic financial statements of the St Mary Pansh Council's primary govemment.

2 No matenal weaknesses were disclosed during the audit of the primary govemment financial statements that are required to be reported in the Report on Intemal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Govemment Auditing Standards

3. Two instances of noncompliance material to the pnmary govemment financial statements of the St. Mary Pansh Council were disclosed during the audit

4 No findings related to the audit of major federal award programs are reported in the Independent Auditor's Report on Compliance with Requirements that Could Have a Direct and Matenal Effect on Each Major Program and on Intemal Control Over Compliance in Accordance with OMB Circular A-133

5 The auditors' report on compliance for the major federal award programs for the St. Mary Parish Council expresses an unqualified opinion on all major federal programs.

6. No audit findings relative to the major federal award programs for the St Mary Pansh Coimcil are reported in Part C of this Schedule

7 The programs tested as major programs include.

Commumty Development Block Grants/States Program and Non-Entitlement Grants In Hawaii (CFDA No 14.228)

ARRA-Energy Efficiency and Conservation Block Grant Program (EECBG) (CFDA No. 81 128)

Disaster Grants - Public Assistance (CFDA No 97.036)

8 The threshold for distinguishing types A and B programs was $300,000

9 St Mary Pansh Council was determined to be a low risk auditee

114

B FINDINGS - FINANCIAL STATEMENT AUDIT

NONCOMPLIANCE

ITEM NO 2011-1 Budget Monitoring

Auditors' Comments Condition. Dunng the course of the audit for the year ended December 31,2011, it was noted that

several of the Pansh's individual funds needed budget amendments that were not made

Cntena: State Statute, the St. Mary Pansh Charter, and the St Mary Parish budget ordmance require that budgets be amended when certain conditions exist These conditions are explained in detail below. The Parish Charter and the budget ordinance are more restrictive than State Statute.

Effect- Failure to amend budgets to recogmze anticipated shortfalls or surpluses in funds prevents the govemmental body from effectively curtailing or expanding projects and/or services in accordance with actual available resources

Cause. Although the cause of the above condition was not fully determined the following appears to have a significant effect Although the Parish makes accruals for payables and receivables at year end, adjustments are not made in the interim penod. When significant differences exist between payables and receivables from year to year, the amount of funds that appear to be available or costs that appear to have been incurred can be distorted Failure to recognize the effect of these differences can lead to variances between budgeted and actual activity.

Recommendation. The Council should fine tune its ongoing budget monitoring program to periodically consider accruals for major revenues and expenditures

A more detailed description of the conditions and criteria is presented below

Auditors' Detailed Comments According to the budget ordinance, the Administration shall notify the Council within thirty days of an actual account fluctuation from budget of five percent, up or down, m revenues or expenditures Notification was not made and the following budgets were not amended although the following actual revenues exceeded budgeted revenues by five percent or more-

Funds, Local Law Enforcement Block (jrant #2 Fund Wards 1,2,3,4,7&10 Sales Tax Fund 16^ JDC-St. Mary Pansh Drug Court Job Readiness Fund Boat Landing Permit Fund Jessie Fontenot Memorial Boat Landing Fund

Actual Amount

50,639 425,529 ,178,955

80,924 21,512 28,085

Budgeted Amount

$ 47,000 366,588

1,119,198 62,730 20,350 26,146

Variance $ 3,639 58,941 59,757 18,194 1,162 1,939

Percent 7 8%

16 1% 5 4%

29.0% 5 8% 7.5%

115

Notification was not made and the following budgets were not amended although actual expenditures were less than budgeted expenditures by five percent or more

Funds

Wards 1,2,3,4,7 & 10 Sales Tax Fund

Gaming Receipt Fund Wards 5 & 8 Sales Tax Fund Community Grant Fund Quintana Boat Landing Fund Housmg Program OJP Enhancement Grant Fund

Actual Amount

$355,762 727,311 241,098

17,923 28,714

387,124 7,186

Budgeted Amount

$434,193 810,855 255,456 20,000 42,500

409,500 16,055

Variance

$78,431 83,544 13,885 2,077

13,786 22,376 8,869

Percent

18.1% 10.3% 5.4% 9.0%

32.5% 5.5%

55.3%

Notification was not made and the following budgets were not amended although actual expenditures exceeded budgeted expenditures by five percent or more

Funds

Jail Operating & Mamtenance Fund 16^ JDC-St Mary Parish Drug Court Job Readiness Fund DWI Court Jessie Fontenot Memonal Boat Landmg Fund Local Law Enforcement Block Grant #2 Fund

Management's Response

Actual Amount

$1,402,777 1,153,498

92,523 132,671 80,032 48,991

Budgeted Amount

$1,240,983 1,098,501

82,121 117,484 54,707 45,980

Vanance

$161,754 54,997 10,402 15,187 25,325 3,011

Percent

13.1% 5.1%

12.7% 13.0% 46.3% 6.6%

Budget monitonng is an area that is continually monitored to project amounts to as close as possible to anticipated year end results With the lead time required for ordinance introduction and layover, as prescribed m our Parish Charter, it is sometimes difficult to anticipate revenues and expenditures through year end Budget vanances will continue to be momtored on a monthly basis and budget adjustments will be recommended to the Council when vanances exceed the percentages as specified m the budget ordinance

116

ITEM NO 2011-2 FUND DEFICITS

Auditors' Comments

Condition. During the course of the audit it was noted that certain funds had deficit fund balances

Critena. State statute prohibits expending amounts in excess of fund balance, revenues, and other financmg sources.

Effect. Violation of state statute

Cause. For the special revenue funds and capital projects fimds, the Council expended amounts in excess of fund balance, revenues, and other financing sources

Recommendation A detailed study should be made to develop additional or altemative funding sources or to consider reallocatmg existing funding

The following individual funds were in violation of state statutes and had deficit fimd balances at year end

Deficit Fund Amount

Special Revenue Funds Jail Operating & Maintenance Fund $( 174,3 5 7) DWI Court (6,146) Jesse Fontenot Memonal Boat Landing Fund (22,644) Lawrence J Michel Jr. Memorial Boat Landing Fund (23,615) OJP Enhancement Grant Fund (1,321)

Management's Response-

Fund Deficits m the Jail Operating & Mamtenance Fund will be funded either by future revenues or transfers from the General Fund. The deficit m the DWI Court Fund will be funded either by future revenues or transfers from the DWI Patient Fee Fund The deficit in the Jesse Fontenot Memorial Boat Landing Fund and the Lawrence J Michel Jr Memonal Boat Landing Fund will be funded by future revenues or transfers from the Boat Landing Permit Fund The deficit in OJP Enhancement Grant Fund will be funded by future revenues.

117

C FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT

NONE

118

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND RELATED CORRECTFVE ACTION PREPARED BY MANAGEMENT OF ST MARY PARISH COUNCIL

Items of Noncompliance

Item No 2010-1 Budget Monitonng

Condition- Dunng the course of the audit for the year ended December 31,2010, h was noted that several of the Pansh's individual funds needed budget amendments that were not made

Corrective Action This has not been conected

Item No 2010-2 Fund Deficits

Condition: Dunng the course of the audit, it was noted that certain funds had deficit fund balances.

Conective Action. This has improved significantly but has not been totally conected.

Intemal Control and Compliance Matenal to Federal Awards

NONE

119

^ -*--*- -*-

PAUL R NAQUIN, JR., PRESIDENT FIFTH FLOOR - COURTHOUSE

FRANKLIN, LOUISIANA 70538-6198

HENRY -BO' LAGRANGE CHEEF ADMlNISTTUm^ OFFICER

OtRECrOR OF RNANCE PAUL J GOVERfMALE CPA CGFM

DIRECTOR OF PERSONNEL TAMMY DOUCET

DIRECTOR OF PLANNING AND ZONNtNG TAMMY LUKE

June 15, 2012

Mr Daryl G Purpera, CPA, ORE Legislative Auditor State of Louisiana

P 0 Box 94397 Baton Rouge, LA 70804-9397

Dear Mr Purpera

The St Mary Parish Government respectfully submits the following corrective action plan relative to findings in the audit for the year ended December 31. 2011 *

DCRECTOR OF PUBUC WORKS GEORGE MIKHAEL PE MSCE

DIRECTOR OF ECONOMIC DEVELOPMENT FRANK G FINK

FFtANKLIN (337)B2B-4100

FAX <337) 828-4092

E-mail aamtn@simarypartshla gov

OFFICE HOURS 8 00AM TOl2fiOPM 100 PM TO 4 30 PM

Findings - Financial Statement Audit Noncompliance

Item No 2011-1 Budaet Monitonng

Management's Response Budget monitoring is an area that is continually monitored to project amounts to as close as possible to anticipated year end results With the lead time required for ordinance introduction and layover, as prescribed in our Pansh Charter, it is sometimes difficult to anticipate revenues and expenditures through year end Budget vanances wilt continue to be monitored on a monthly basis and budget adjustments will be recommended to the Council when vanances exceed the percentages as specified in the budget ordinance

Item 2011-2 Fund Deficits

Management's Response The fund Deficit in the Jail Operating & Maintenance Fund will be funded either by future revenues or transfers from the General Fund The deficit in the DWI Court Fund will be funded either by future revenues or transfers from the DWI Patient Fee Fund The deficit tn the Jesse Fontenot Memonal Boat Landing Fund and the Lawrence J Michel. Jr Memonal Boat Landing Fund will be funded by future revenues or transfers from the Boat Landing Permit Fund

120

Mr Daryl G Purpera, CPA, CFE Legislative Auditor State of Louisiana

The deficit in the OJP Enhancement Grant Fund will be funded by future revenues

Any questions conceming this corrective action plan should be directed to Mr. Paul J Govemale, Director of Finance, or Mr Henry C LaGrange, Chief Administrative Officer

Sincerely,

Paul J Govemale, CPA. CGFM Director of Finance St Mary Pansh Govemment

121

^ ST MARY PARISH GOVERNMENT - ^ - ^ - ^ - * - i ' * - - ^ - * - - * - - * - i

HENRY -BO- lAQRANQE CHIEP AOMMSTRATIVE 0FRCS1

OnECrOR OF FINANCE PAUL J GOVERNALE, CRA. OQFM

OtRECTOR OP PER30NNB. TAMMY DOUCET

DIRECTOR OF PLANMNQ AND Z9NN1AX3 TAMMY LUKE

DtRECTOn OP PU8UQ WORKS QEORQE MIKHAEL. R E , MSCE

DIRBCTOR OF EOONOhOC DEVELOPM&rr FRANKanNK

FRANKUN (337)828^100

FAX (337) 628-4092

E-man admlntSfstmaiypertshlagov

OFRCE HOURS 8-00 A.M T012-00 PJVI 1*00 PiWi TO 4.30 PM.

PAUL P. NAQUIN, JR., PRESIDENT FIFTH FLOOR - COURTHOUSE

FRANKLIN, LOUISIANA 70538-6198

June 15, 2012

Mr. Daryl G. Purpera. CPA. CFE Louisiana Legislative Auditor P.O. 60X94397 Baton Rouge, LA 70804-9397

RE: St. Mary Parish Govemment - Primary Govemment Update on Possible Fraud - FY 2010

Dear Mr. Purpera,

I am writing to give you an update on the two possible instances of fraud that occun-ed within the St. Mary Parish Govemment during the year ended December 31,2010.

The first instance involved a former employee recording time in the payroll system which was not worthed. We received full restitution in this matter and it was turned over to the local law enforcement agencies. We consider this matter to be resolved.

The second instance Involved a fomner employee located at our Kemper Williams Pari< location who misappropriated park revenues. This matter was also turned over to local law enforcement agencies. We may receive funds from court ordered restitution In the future. We consider this matter to be resolved

Sincerely,

Paul J. Govemale. CPA, CGFM Director of Finance St. Mary Parish Govemment

Documents

St. Mary Parish Council - Louisiana...2012, on our consideration of the St Mary Pansh Council's intemal control over financial reportmg and our tests of its compliance with certam