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CITY OF YOUNGSVILLE, LOUISIANA

Financial Report

Year EndedJune 30, 2013

Under provisions of state !aw, this report is a public document.Acopyofthe report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropnate, at the office of the parish clerk of court.

Release Date JAN 1 5 2 0 H

C. Burton Kdder. CPA* Russell F. Champagne. CPA* Victor R. Slaven. CPA* Gerald A. Thibodeaux. Jr.. CPA* Robert S. Carter. CPA* Arthur R. Maoa CPA' Penny Angelle Scruggins, CPA Christine C. Ooucet, CPA

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS

LLC

Wanda F. Arcemant CPA.CVA Allen J. LaBry. CPA Albert R. Leger, CPA,PFS.CSA* Marshall W. Guidry. CPA Stephen R Moore. Jr.. CPA.PFS.CFP*.ChFC^ James R. Roy, CPA Robert J. Metz. CPA Alan M. Taylor. CPA Kelly M. Ooucet. CPA Cheryl L. Baniey. CPA Mandy B. Self. CPA Paul L. DelcambPB. Jr.. CPA Kristin 8. Dauzat, CPA Matthe>M E. Margagiio, CPA JaneR. HebertCPA Bryan K. Joubert, CPA Stephen J. Anderson. CPA W. Jeffrey Lowry. CPA Brad E.Kolder. CPA. JD Casey L. Ardoln. CPA

MANAGEMENT LETTER

OFFICES

183 South Beadle Rd. Lafayette. LA 70508 Phone (337) 232-4141 Fax (337) 232-6660

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

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

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

332 West Sixth Avenue Oberiin. LA 70655 Phone (337) 639^737 Fax (337) 639-4566

450 East Main Street New Iberia, LA 70560

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

200 South Main Sbvet Abbeville. LA 70510

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

1013 Main Street Franklin, LA 70536

Phone (337) 82W)272 Fax (337) 82&O290

133EastWaddilSt. MailcsviDe LA 71351

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

1428 Metro Drive Alexandria. LA 71301

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

Retired: Conrad O. Chapman, CPA* 2006

WEBSITE WWW.KCSRCPAS.COM

The Honorable Wilson Viator, Mayor and Members of the Board of Aidermen City of Youngsville, Louisiana

During our audit of the basic financial statements of the City of Youngsville fortheyearended June 30,2013, we noted the following areas in which the efficiency and effectiveness of the operations of the City could be improved. Items 1 and 2 were also included in our management letter dated December 12, 2012 relative to our audit of the June

30,2012 basic financial statements and are mentioned again for re-emphasis.

1. Due to the increasing size of the City's operations, it appears that the current software being utilized may not be sufficient to effectively and efficiently record transactions in an accurate manner to provide financial information to management officials

2. City management should invest any excess cash balances in order to maximize interest earnings.

3. Several cash balances are being improperly reconciled, thus causing incorrect adjustments to the general ledger. This lack of control can leave opportimity for misappropriation if not corrected.

4. The City's sewer department experienced an operating loss of $131,387. Consideration should be given to increasing rates and/or decreasing expenses in this department in order to generate a profit.

We would like to express our appreciation to you and your staff, particularly your office staff, for the courtesies and assistance rendered to us in the performance of our audit. Should you have any questions or need assistance please feel free to contact us.

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

Lafayette, Louisiana December 23,2013

Member of: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

Member of: SOOETY OF LOUISIANA

CERTIFIED PUBLIC ACCOUNTANTS

http://WWW.KCSRCPAS.COM

TABLE OF CONTENTS

Independent Auditors' Report

BASIC FINANCIAL STATEMENTS

Page

1-3

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

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

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

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

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

position - proprietary fund Statement of cash flows - proprietary fund

Notes to basic financial statements

10

11

12

13

14

15 16-17

18-41

REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedules:

General Fund 1968 Sales Tax Special Revenue Fund 1981 Sales Tax Special Revenue Fund 1999 Sales Tax Special Revenue Fund Recreational Facility Sales Tax Special Revenue Fund

OTHER SUPPLEMENTARY INFORMATION

43 44 45 46 47

Statement of net position - compared to prior year totals General and Special Revenue Funds - comparative balance sheet

Major Governmental Funds - Detail budgetary comparison schedules compared to actual for prior year:

General Fund - budgetary comparison schedule - revenues General Fund - budgetary comparison schedule- expenditures 1981 Sales Tax Fund - budgetary comparison schedule - expenditures

49 50

51 52-53

54

(continued)

TABLE OF CONTENTS (continued)

Page

Major Governmental Funds - Schedule of revenues, expenditures, and changes in fund balance - budget (GAAP basis) and actual:

Recreational Facility Sales Tax Fund - budgetary comparison schedule - expenditures 55 General Obligation Bonds Fund 56 Street Improvements and Construction Fund 57 Recreational Facility Construction Fund 58

Schedule of number of utility customers (unaudited) 59 Schedule of insurance in force (unaudited) 60 Combined schedule of interest-bearing deposits - all funds 61 Comparative statement of net position - proprietary fund 62 Comparative departmental analysis of revenues and expenses 63-64 Comparative statement of cash flows - proprietary fund 65-66

INTERNAL CONTROL, COMPLIANCE, AND OTHER MATTERS 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 68-69

Summary schedule of current and prior year audit findings and corrective action plan 70-73

C. Burton Kolder, CPA* Russell F. Champagne, CPA* Victor R, Slaven, CPA* Gerald A. Thibodeaux, Jr., CPA' Roben S. Carter, CPA* Arthur R. Mixon, CPA* Penny Angetle Scruggins, CPA Christine C. Doucet, CPA

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

OFFICES

Wanda F, Arcement. CPA.CVA AllenJ. I jBry, CPA Albert R. Leger, CPA,PFS,CSA' Marshall W. Guidry, CPA Stephen R Moore, Jr., CPA,PFS,CFP*.ChFC' James R. Roy, CPA Robert J, Metz. CPA Alan M. Taylor. CPA Kelly M- Doucet, CPA Cheryl L. Bartley. CPA Mandy B. Self, CPA Paul L Deicambre, Jr., CPA Kristin B. Dauzat CPA Matthew E Margagiio, CPA Jane R. Hebert, CPA Bryan tC Joubert, CPA Stephen J. Anderson, CPA W, Jeffrey Lowry, CPA Brad E. Kolder, CPA, JD Casey L, Ardoin, CPA INDEPENDENT AUDITORS' REPORT

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

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

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

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

332 West Sixth Avenue Oberiin, LA 70655 Phone (337) 6394737 Fax (337) 639-4568

450 East Main Sb-eet New Iberia, LA 70560

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

200 South Main Street Abbeville. LA 70510

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

1013 Main Street Franklin, LA 70538

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

133EastWeddilSt. Marksville LA 71351

Phone (318) 253-9252 Fax (316) 253-8681

1428 Metro Drive Alexandria, LA 71301

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

Retired: Conrad O. Chapman, CPA* 2006

WEBSITE WWW.KCSRCPAS.COM

' A PrcrfessionsI Accounting Coiporatlon

The Honorable Wilson Viator, Mayor, and Members of the Board of Aldermen

City of Youngsville, Louisiana

Report on the Financial Statements

We have audited the accompanying fmancial statements of the governmental activities, the business-type activities, and each major fund of the City of Youngsville, Louisiana, (the City) as of and for the year ended June 30, 2013, and the related notes to the fmancial statements, which collectively comprise the City's basic fmancial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these fmancial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of fmancial statements that are free from material misstatement, whether due to error or fraud.

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller Genera! of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the fmancial statements, whether due to error or fraud. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the fmancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the fmancial statements.

We believe that our audit provides a reasonable basis for our opinions.

Member of: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

Member of: SOCIETY OF LOUISIANA


http://WWW.KCSRCPAS.COM

Opinions

In our opinion, the fmancial statements referred to above present fairly, in all material respects, the fmancial position of the governmental activities, the business-type activities, and each major fund of the City of Youngsville, Louisiana, as of June 30, 2013, and the respective changes in fmancial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 43 through 47 be presented to supplement the basic fmancial statements. Such information, although not a part of the basic fmancial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of fmancial reporting for placing the financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing 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 fmancial 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.

Other Information

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

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Youngsville, Louisiana's basic financial statements. The other supplementary information on pages 49 through 66 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The other supplementary information is the responsibihty of management and was derived from and relate directly to the underiying accounting and other records used to prepare the basic fmancial statements. Such information, except for the budgetary comparison schedules, major governmental fund schedules, schedule of number of utility customers and schedule of insurance in force, has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underiying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, this other supplementary information is fairiy stated in relation to the basic fmancial statements taken as a whole.

The budgetary comparison schedules, major governmental fund schedules, schedule of number of utility customers and schedule of insurance in force have not been subjected to the auditing procedures applied in the audit of the basic financial statements and accordingly, we express no opinion on them. The prior year comparative information on the other supplementary information has been derived from the City of Youngsville's 2012 financial statements, which was subjected to the auditing procedures applied in the audit of the basic financial statement and, in our opinion, was fairly presented in all material respects in relation to the basic financial statements taken as a whole, except for the schedule of number of utility customers which was not subjected to the auditing procedures and on which we expressed no opinion.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 23, 2013, on our consideration of the City of Youngsville, Louisiana's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over fmancial reporting or on compliance. That report is an integral part of an audit performed in accordance v^th Government Auditing Standards in considering the City's internal control over financial reporting and compliance.

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

Lafayette, Louisiana December 23, 2013

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS)


Statement of Net Position June 30.2013

2013

ASSETS Current assets:

Cash and interest-bearing deposits Receivables, net Internal balances Due from other governmental units

Inventory Prepaid items

Total current assets

Noncurrent assets: Restricted assets:

Cash and interest-bearing deposits Investments

Unamortized bond issuance costs Capita] assets:

Land and construction in progress Capital assets, net

Total noncurrent assets

Total assets

LIABILITIES Current liabilities:

Accounts, salaries and other payables Capital lease payable Bonds payable Accrued interest

Total current liabilities

Noncurrent liabilities: Customers' deposits Bonds payable

Total noncurrent liabilities

Total liabilities

NET POSITION Invested in capital assets, net of related debt Restricted for debt service Restricted for water f\ind operations Unrestricted

Total net position

Governmental Activities

$ 4,392,322 704,904 885,466 621,056

5,790 27,798

6,637,336

Business-Type Activities

$ 890,445 360.316

(885.466) --

19,128 384,423

Total

$ 5^282.767 1,065.220

-621.056

5.790 46.926

7.021,759

18,870,820 5.213,369

638,972

19,133,039 22.390,898 66.247.098

72,884.434

1,908,942 -

53,457

1.168.277 13.671,226 16.801.902

17,186.325

20.779.762 5.213,369

692.429

20,301,316 36.062.124 83.049.000

90.070.759

3.408,125 9,559

1.518.000 166.823

5.102,507

_

32.925,252 32.925.252

38.027.759

24.836.662 3,748.689

-6,271,324

$ 34.856,675

388.064 -

278.000 10.448

676,512

229.987 4.411,043 4,641,030

5,317,542

10.996,854 487,139 194,086 190,704

$ 11,868,783

3.796.189 9.559

1.796.000 177,271

5,779,019

229.987 37,336.295 37.566,282

43.345.301

35.833.516 4.235,828

194,086 6.462,028

$ 46.725.458

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

6

CITY OF YOUNGSVILLE. LOUISIANA

Statement of Activities For the Year Ended June 30,2013

Activities Governmental activities:

General government Public safety:

Police Fire

Streets Culture and recreation Interest on long-term debt

Total governmental activities Business-type activities:

Water Sewer Sanitation

Total business-type activities

Total

Expenses CI

$ 1,335,584

1.328,640 346,547

1,354,653

55,577 1.186.640 5.607,641

1,572,119 878,606 643,911

3,094,636

$ 8.702.277

General revenues: Taxes-

Fees, Fines, and

Program Revenues Operating

Grants and larges for Services Contributions

$ 769.798

263.329 --

-

1,033.127

1.537,554 706.809 657.646

2,902,009

$3,935,136

Ad valorem taxes

$

---

--

---

.

$

Sales and use taxes, levied for general purposes Franchise taxes

Capital Grants and

Contributions

$

--

6,144,923

-

6,144,923

23,603 200.000

-

223,603

$ 6,368,526

Grants and contributions not restricted to specific programs -State sources

Interest and investment earnings Miscellaneous

Transfers Total general revenues and transfers

Change in net position

Net position - July 1,2012

Net position - June 30,2013

Net (Expense) Revenues Changes in Net Positic


$ (565.786)

(1,065,311) (346,547)

4,790,270

(55.577)

(1,186.640) 1,570,409

---

_

1,570.409

647.818 6.297.058

400,963

14,853 52,113

119.213 (2,472.630) 5,059,388

6,629,797

28,226,878

$ 34.856.675


$

------

(10.962) 28.203 13.735

30.976

30.976

227,612 --

-1,001 -

2.472,630 2.701.243

2.732,219

9.136,564

$11,868,783

and n

Total

S (565,786)

(1,065,311) (346.547)

4.790,270 (55,577)

(1,186,640) 1,570.409

(10,962) 28.203 13,735

30,976

1.601,385

875.430 6,297,058

400.963

14,853 53,114

119.213 -

7,760,631

9,362,016

37,363,442

$ 46,725.458

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

FUND FINANCIAL STATEMENTS (FFS)

MAJOR FUND DESCRIPTIONS

General Fund

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

Special Revenue Funds

1968 Sales Tax Fund -To account for the receipt and use of proceeds of the City's 1968 1% sales and use tax. The tax is dedicated to constructing, acquiring, extending, improving and/or maintaining sewers and sewerage disposal works, waterworks, public streets, roads, alleys, sidewalks, and drainage facilities, including the purchase of equipment therefore. The tax proceeds may also be funded into bonds or used to pay any bonded or funded indebtedness of the City incurred for such capital purposes, to the extent and in the manner provided by state law.

1981 Sales Tax Fund -To account for the receipt and use of proceeds of the City's 1981 1% sales and use tax. The tax is dedicated to maintain the City's law enforcement facilities, including the acquisition of equipment and furnishings therefore, the construction and/ or acquisition of buildings to house such facilities, and paying employees' and policemen's salaries.

1999 Sales Tax Fund -To account for the receipt and use of proceeds of the City's 1999 1/2% sales and use tax. The tax is dedicated to constructing, acquiring, improving, maintaining and operating sewers and sewerage disposal works for the City and to be funded into bonds to pay the capital costs thereof to the extent and in the manner permitted by state law.

Recreational Facilities Sales Tax Fund -To account for the receipt and use of proceeds of the City's Recreational Facilities 1% sales and use tax. The tax is dedicated to pay for the debt service on the revenue bonds associated with the acquisition, construction, and equipping of a multi-purpose community center and related infirastructure and recreational facilities and ongoing operation and maintenance of the facilities.

Debt Service Fund General Obligation Bonds Fund -To accumulate monies for payment of $5,000,000 of 2009 sales tax bonds and $8,140,000 of 2011 revenue bonds, which are financed from the collection of the City's 1968 1% sales tax, rededicated in 2006. The fund is also utilized to accumulate monies for payment of $10,000,000 2012 and $9,500,000 2013 Recreational Facility Sales Tax Revenue Bonds, which is financed from the collection of the City's Recreational Facility 1% sales tax. Additionally, the fund is used to accumulate monies for payment of $2,025,000 of 2012 limited tax revenue bonds, which are financed from the collection of ad valorem taxes. Finally, the fund is used to accumulate monies for payment of $848,000 of 2013 sales tax refunding bonds, which are financed from the collection of the City's 1999 1/2% sales tax.

Capi ta l Projects F u n d

Street Improvements and Construction Fund -To account for the improvements and construction of various street projects using proceeds from grant revenue and issuance of general obligation bonds.

Recreational Facility Construction Fund -To account for the construction of the recreational facility and the multi-purpose community center utilizing the proceeds of the $10,000,000 2012 and $9,500,000 2013 Recreational Facility Sales Tax Revenue Bonds and grant revenues.

Enterprise Fund

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


ASSETS Cash and interest-bearing deposits Investments Receivables:

Taxes Accrued interest Due from other governmental units Due fi-om other funds Other

Inventory Prepaid items

Total assets

LIABILITIES AND FUND BALANCES Liabilities:

Accounts payable Contracts payable Retainage payable Accmed liabilities Due to other funds

Total liabilities

Fund balances -Nonspendable (for prepaid items) Restricted:

Sales tax dedications Debt service Capital projects

Unassigned Total fund balances

Total liabilities and fund balances

General

$1,099,479 -

--

74,694 875,864 47.843

-14,104

$2,111,984

$ 85,449 --

29,214 619.224 733,887

14.104

546,934 --

817,059 1,378,097

$2,111,984

1968 Sales Tax

Special Revenue

$ 921 -

495,170 --

1.342.421 ---

$1,838,512

$ ---

492.580 492.580

-

1,345.932 ---

1,345.932

$1,838,512

Balance Sheet Governmental Funds

1981 Sales Tax

Special Revenue

$1,581,998 -

-139

-215.667

--

13,694 $1,811,498

$ 14,983 --

23,817 187.628 226.428

13,694

1.571.376 --.

1.585.070

$1,811,498

June 30.2013

1999 Sales Tax Special

Revenue

$ 991.534 -

---

132,286 ---

$1,123,820

$ ---

321,685 321.685

-

802,135 --.

802,135

$1,123,820

Recreational Facility

Sales Tax Revenue

$ 718,390

159,574 --

54,028 -

5,790 -

$ 937.782

$ 9.844 --

2.690 839

13.373

-

---

924.409 924,409

$ 937,782

General Obligation

Bonds

$ 3,411,174 339,241

---

738,467 ---

$ 4,488,882

$ 29,918 ---

543,452 573,370

-

-3.915,512

--

3,915,512

$ 4.488,882

Street Improvements

and Construction

$

1

$

1

963,531 4,874,128

-2.178

546.362 585.455

---

6.971.654

5,000 991,278 573,409

-842,081

2.411.768

-

--

4,559.886 -

4.559,886

6,971,654


Construction

$14,496,115 -

---

155,760 ---

$14,651,875

$ 1.437.386

205,137 -

206,993 1,849,516

-

--

12.802,359 -

12.802.359

$14,651,875

Totol

$ 23.263.142 5.213,369

654,744 2.317

621,056 4,099.948

47.843 5.790

27.798 $ 33.936.007

$ 145.194 2,428,664

778.546 55.721

3.214.482 6.622,607

27,798

4.266,377 3,915.512

17,362,245 1,741,468

27.313.400

$ 33.936.007

The accompanying notes are an integral part of the basic financial statements. 10


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

June 30,2013

Total fund balances for governmental funds at June 30,2013 $27,313,400

Total net position reported for governmental activities in the statement of net position is difTerent because:

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

Land and construction in progress Buildings, net of $400,145 accumulated depreciation Infrastructure, net of $2,324,699 accumulated depreciation Equipment net of $1,175,008 accumulated depreciation

$19,133,039 1,994,294

19,962,857 433.747 41,523,937

Long-term liabilities at June 30,2013: Capital lease payable Bonds payable Accrued interest payable

(9,559) (34,443.252)

(166,823) (34,619,634)

Bond issue costs which are reported as expenditures in the year incurred in the governmental funds are deferred and amortized in the statement of activities.

Bond issue costs, net of accumulated amortization 638,972

Total net position of governmental activities at June 30,2013 $34.856,675


n


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

For the Year Ended June 30, 2013

Revenues: Taxes Licenses and permits Intergovernmental Fines and forfeits

Miscellaneous

Total revenues

Expenditures: Current -

General government Public safety:

Police Fire

SU-eets Culture and recreation

Capitol outlay

Debt service

Totol expenditures

Excess (deficiency) of revenues

over expenditures

Other financing sources (uses): Issuance of debt Payment to refund debt Discount on issuance of debt Transfers in Transfers out

Totol other financing sources (uses)

Net changes in fund balances

Fund balances, beginning

Fund balances, ending

General

$1,595,715 769,798

14,853 263,329

45.123

2.688,818

1,243.634

-346.012 570,091

-

23.991 57.220

2,240.948

447,870

--

-

6.689 -

6,689

454,559

923.538

$1,378,097

1968 Sales Tax

Special Revenue

$ 1,818,084 ---

496

1.818.580

12.961

------

12.961

1,805,619

--

--

(1,943,113)

(1,943.113)

(137,494)

1.483.426

$ 1,345,932

1981 Sales Tax

Special Revenue

$ 1,271,150 ---

9,065

1,280,215

12.836

1.212,597 ---

91.324 -

1.316,757

(36,542)

(36.542)

1.621.612

$ 1.585,070

1999 Sales Tax

Special Revenue

$ 909,042 ---978

910.020

8.168

-----.

8.168

901,852

--

--

(1.716.183)

(1,716.183)

(814,331)

1,616,466

$ 802,135


Sales Tax Revenue

$ 1.751.848 ---

2,077

1,753,925

28,679

---

55,236 22,007

-

105,922

1.648.003

--

--

(723.594)

(723.594)

924.409

-

$ 924,409

General Obligation

Bonds

$ ---

1,744

1.744

-

-----

1.626.953

1.626,953

(1,625,209)

2.873.000 (2.216.000)

-3.745.593 (914.111)

3.488.482

1.863.273

2.052,239

$3,915,512

Street Improvements

and ConsU^ction

$ -

6.144.923 -

87.690

6,232,613

-

--

10.328 -

9.796.065 -

9.806.393

(3,573,780)

--

--

-

(3.573.780)

8,133,666

$4,559,886


Construction

$ ---

30.203

30,203

-

----

4.909,758 121.991

5.031.749

(5.001.546)

9.500.000 -

(101,748) 68,243

(996,154)

8.470.341

3.468.795

9.333.564

$12,802,359

Totol

$ 7,345,839 769,798

6,159,776 263,329 177,376

14.716.118

1.306.278

1.212.597 346,012 580.419

55.236 14.843.145

1.806,164

20.149,851

(5.433.733)

-

12,373,000 (2,216,000)

(101,748) 3.820.525

(6.293.155)

7.582.622

2,148.889

25.164.511

$27,313,400

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

12


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

to the Statement of Acrivities For the Year Ended June 30,2013

Total net changes in fund balances at June 30,2013 per Statement of Revenues, Expenditures and Changes in Fund Balances $ 2,148,889

The change in net position reported for governmental activities in the statement of activities is different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.

Capital outlay which is considered expenditures on Statement of Revenues, Expenditures and Changes in Fund Balances $ 14,756,538

Depreciation expense for the year ended June 30,2013 (836,653) Loss on sale of capital asset (3,249) 13,916,636

Issuance of debt is reported as financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net assets, however, issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal and transfer to paying agent are recorded as expenditures in the governmental funds but reduce the liability in the statement of activities.

Bond proceeds (12,373,000) Discount on issuance of debt 101,748 Payment to refund debt 2,216,000 Principal payments 658,785 (9,396.467)

Governmental funds report the effect of issuance costs when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.

Issuance costs amortized during the current year, not reflected as an expenditure in the statement. (17,769)

Difference between interest on long-term debt on modified accrual basis versus interest on long-term debt on accrual basis (21,492)

Total changes in net position at June 30, 2013 per Statement of Activities $ 6,629,797


13


Statement of Net Position Proprietary Fund

June 30,2013

ASSETS

Current assets: Cash Receivables:

Accounts receivable (net) Unbilled utility receivables Accrued interest receivable Due from other funds Prepaid Items

Totol current assets

Noncurrent assets: Restricted assets -

Cash Interest-bearing deposits, at cost

Unamortized bond issuance costs Capitol assets:

Land and construction in progress Other capitol assets, net of accumulated depreciation

Totol noncurrent assets

Totol assets

Current liabilities: Accounts payable Contracts payable Retoinage payable Other liabilities Due to other funds Payable fi-om restricted assets -

Revenue bonds Accrued interest

Totol current liabilities

Noncurrent liabilities: Customers* deposits Revenue bonds payable

Totol noncurrent liabilities

Totol liabilities

Invested in capitol assets, net of related debt Restricted for debt service Restricted for water department operations Unrestricted

Totol net position

LIABILITIES

NET POSITION

$ 890,445

255.743 104.516

57 421,662

19,128

1,691,551

1.339.838 569.104

53.457

1,168,277 13,671,226

16,801,902

18.493,453

183,817 157.090 37.255 9.902

1.307.128

278.000 10.448

1,983,640

229,987 4,411.043

4.641.030

6,624.670

10,996,854 487.139 194.086 190.704

$11,868.783

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

14


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

For the Year Ended June 30,2013

Operating revenues: Charges for services -

Water sales Sewer service charges Sanitation charges

Miscellaneous Total operating revenues

Operating expenses: Water department Sewerage department Sanitation department

Total operating expenses

Operating loss

Nonoperating revenues (expenses): Ad valorem taxes Interest income Interest expense Amortization - bond issuance costs Amortization - loss on bond refunding

Total nonoperating revenues (expenses)

Income before contributions and transfers

Capital contributions

Transfers in


Net position, beginning

Net position, ending

$ 1,066,493 585,282 653,923 596,311

2,902,009

1,500,279 838,196 643,911

2,982.386

(80.377)

227.612 1.001

(89,429) (16,580)

(6,241)

116,363

35,986

223,603

2,472,630

2,732,219

9,136,564

$11,868,783


15


Statement of Cash Flows Proprietary Fund

For the Year Ended June 30,2013

Cash flows from operating activities: Receipts from customers Payments to suppliers Payments to employees Other receipts

Net cash provided by operating activities

Cash flows from noncapital financing activities: Cash paid to other funds Transfers from other funds

Net cash provided by noncapital financing activities

Cash flows fi'om capital and related financing activities: Principal paid on revenue bonds payable Interest and fiscal charges paid on revenue bonds payable Proceeds fi'om revenue bonds payable Net increase in customer deposits payable Acquisition of property, plant and equipment Proceeds from ad valorem taxes Proceeds from grants

Net cash used by capital and related financing activities

Cash flows from investing activities: Purchase of interest-bearing deposits Maturities of interest-bearing deposits Interest on investments

Net cash provided by investing activities

Net increase in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

$ 2,269,450 (2.019,030)

(404,349) 596,311 442,382

(644,274) 2,472,630 1,828,356

(1,565,000)

(97,898)

664,436

24.675

(1,447,959)

227,612

223,603

(1,970,531)

(166.648)

166,275

1,041

668

300,875

2,331,864

$ 2,632,739

(continued)

16


Statement of Cash Flows Proprietary Fund - (Continued)

For the Year Ended June 30.2013

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

Operating loss $ (80,377) Adjustments to reconcile operating loss to net cash provided by

operating activities: Depreciation 557,353 Changes in current assets and liabilities:

Increase in accounts receivable (24,593) Increase in unbilled utility receivable (11,655) Increase in prepaid items (U052) Increase in accounts payable 4,897 Decrease in other liabilities (2,191)

Net cash provided by operating activities $ 442,382

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

Cash and cash equivalents, beginning of period -Cash - unrestricted $ 618,808 Cash - restricted 1,150,511 Interest-bearing deposits - restricted 728,820 Less: Interest-bearing deposits with a maturity over three months (166,275)

Total cash and cash equivalents, beginning of period 2,331,864

Cash and cash equivalents, end of period -Cash - unrestricted 890,445 Cash - restricted 1,339,838 Interest-bearing deposits - restricted 569,104 Less: Interest-bearing deposits with a maturity over three months (166,648)

Total cash and cash equivalents, end of period 2,632,739

Net increase $ 300,875

The accompanying notes are an integral part of the basic financial statements. 17


Notes to Basic Financial Statements

(1) Summary of Significant Accounting Policies

The accompanying financial statements of the City of Youngsville (the City) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note.

A. Financial Reporting Entity

The City of Youngsville was incorporated under the provisions of the Lawrason Act. The City operates under the Mayor-Board of Aldermen form of government.

This report includes all funds that are controlled by or dependent on the City executive and legislative branches (the Mayor and Board of Aldermen). Control by or dependence on the City was determined on the basis of budget adoption, taxing authority, authority to issue debt, election or appointment of governing body, and other general oversight responsibility.

Based on the foregoing criteria, certain governmental organizations are not part of the City and are thus excluded from the accompanying financial statements. These organizations include the Youngsville Volunteer Fire Department and the Youngsville Auxiliary Police Department. Although the City does provide facilities and some of their financing, no control is exercised over their operations.

B. Basis of Presentation

Government-Wide Financial Statements (GWFS)

The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services.

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

18


Notes to Basic Financial Statements (Continued)

Fund Financial Statements

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

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

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

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

The major funds of the City are described below:

Governmental Funds -

General Fund

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

Special Revenue Funds

1968 Sales Tax Fund-

The 1968 Sales Tax Fund is used to account for the proceeds of a one percent sales and use tax that is legally restricted for expenditures for specific purposes.


The 1981 Sales Tax Fund is used to account for the proceeds of a one percent sales and use tax that is legally restricted for expenditures for specific purposes.


The 1999 Sales Tax Fund is used to account for the proceeds of a half percent sales and use tax that is legally restricted for expenditures for specific purposes.

Recreational Facility Sales Tax Fund -

The Recreational Facility Sales Tax Fund is used to account for the proceeds of a one percent sales and use tax that is legally restricted for expenditures for specific purposes.

19



Debt Service Fund - General Obligation Bonds Fund -

The General Obligation Bonds Fund is used to accumulate monies for payment of the City's general obligation bonds, which are being financed by the 1968, 1999, and Recreational Facilities sales tax revenues, and ad valorem taxes.

Capital Projects Funds

Street Improvements and Construction Fund -

The Street Improvements and Construction Fund is used to account for the improvements and construction of various street projects using proceeds from grant revenue and issuance of bonds.

Recreational Facility Construction Fund -

The Recreational Facility Construction Fund was used to account for the construction of the recreational facility and multi-purpose community center using proceeds from grant revenue and issuance of bonds.

Proprietary Fund -

Enterprise Fund

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

C. Measurement Focus/Basis of Accounting

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

Measurement Focus

On the government-wide statement of net position and the statement of activities, both governmental and business-type activities are presented using the economic resources measurement focus as defined in item b. below.

In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate:

20



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

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

Basis of Accounting

In the government-wide statement of net position and statement of activities, both governmental and business-type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities, and deferred inflows of resources resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

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

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

D. Assets. Deferred Outflows. Liabilities, Deferred Inflows and Equity

Cash and interest-bearing deposits

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

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

21



Interfund receivables and payables

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

Receivables

In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Major receivable balances for the governmental activities include sales and use taxes and fi^nchise taxes. Business-type activities report customer's utility service receivables as their major receivables. Uncollectible utility service receivables are recognized as bad debts through the establishment of an allowance account at the time information becomes available which would indicate the uncollectibility of the particular receivable. The allowance for uncollectibles for customers' utility receivables was $22,786 at June 30, 2013. Unbilled utility service receivables resulting from utility services rendered between the date of meter reading and billing and the end of the month, are recorded at year end.

Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets are reported in the applicable governmental or business-type activities columns in the government-wide or financial statements. Capital assets are capitalized at historical cost or estimated cost if historical is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The City maintains a threshold level of $1,000 or more for capitalizing capital assets.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Prior to July 1, 2001, governmental funds' infrastructure assets were not capitalized. These assets have been valued at estimated historical cost.

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

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

22

CITY OF YOUNGSVILLE. LOUISL\NA


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

Restricted Assets

Restricted assets include cash, interest-bearing deposits and investments that are legally restricted as to their use. The restricted assets are related to capital projects constructions accounts, revenue bond accounts and utility meter deposits.

Long-term debt

The accounting treatment of long-term debt depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or ftind financial statements.

All long-term debt to be repaid from governmental and business-type resources are reported as liabilities in the government-wide statements. The long-term debt consists primarily of the revenue bonds payable and utility meter deposits payable.

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

Compensated Absences

Vacation and sick leave are recorded as expenditures of the period in which paid. Vacation must be taken in the year accrued and cannot be carried over. Sick leave is accumulated by employees at a rate dependent upon number of years of employment. Although sick leave is available for employees when needed, it does not vest nor is it payable at termination of employment. Therefore, no liability has been recorded in the accounts as of June 30, 2013.

Equity Classifications

In the government-wide statements, equity is classified as net position and displayed in three components:

a. Invested in capital assets, net of related debt - Consists of net capital assets reduced by outstanding balances of any related debt obligations and deferred inflows of resources attributable to the acquisition, construction, or improvement of those assets and increased by balances of deferred outflows of resources related to those assets.

23



b. Restricted net position - Net position is considered restricted if the use is constrained to a particular purpose. Restrictions are imposed by external organizations such as federal or state laws or buyers of the City's debt. Restricted net position is reduced by liabilities and deferred inflows of resources related to the restricted assets.

Unrestricted net position - Consists of all other net position that does not meet the definition of the two components and is available for general use by the City.

In the fund financial statements, governmental fund equity is classified as fund balance. As such, fund balances of the governmental funds are classified as follows:

a. Nonspendable - amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact.

b. Restricted - amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments.

c. Committed - amounts that can be used only for specific purposes determined by a formal decision of the City's Mayor and Board of Aldermen, which is the highest level of decision-making authority for the City.

d. Assigned - amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes determined by a formal decision of the City's Mayor and Board of Aldermen.

e. Unassigned - all other spendable amounts.

When an expenditure is incurred for the purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City has provided otherwise in their commitment or assignment actions.

statements. Proprietary fund equity is classified the same as in the government-wide Its.

24



E. Revenues. Expenditures, and Expenses

Operating Revenues and Expenses

Operating revenues and expenses for proprietary funds are those that result from providing services and producing and delivering goods and/or services. It also includes all revenue and expenses not related to capital and related financing, noncapital financing, or investing activities.

Expenditures/Expenses

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

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

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

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

Interfund Transfers

Permanent reallocations of resources between funds of the reporting entity are classified as interfiind transfers. For the purposes of the statement of activities, all interfiind transfers between individual governmental funds have been eliminated.

F. Revenue Restrictions

The City has various restrictions placed over certain revenue sources from state or local requirements. The primary restricted revenue sources include:

Revenue Source Legal Restrictions of Use

Sales Tax See Note 3 Water and Sewer Revenue Debt Service and Utility Operations

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

G. Capitalization of Interest Expense

It is the policy of the City of Youngsville to capitalize material amounts of interest resulting from borrowings in the course of the construction of capital assets. As of June 30, 2013, although bonds were issued for assets under construction, no interest was capitalized due to immateriality.

25



H. Budget and Budgetary Accounting

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

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

2. A summary of the proposed budget is published and the public notified that the proposed budget is available for public inspection. At the same time, a public hearing is called.

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

4. After the holding of the public hearing and completion of all action necessary to finalize and implement the budget, the budget is adopted through passage of a resolution prior to the commencement of the fiscal year for which the budget is being adopted.

5. Budgetary amendments involving the transfer of funds from one department, program or function to another or involving increases in expenditures resulting from revenues exceeding amounts estimated require the approval of the Board of Aldermen.

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

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

I. Bond Discount and Bond Issue Costs

Bond discount and bond issue costs are being amortized by the straight-line method over the life of the related bond.

J. Use ofEstimates

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

K. Report Reclassification

Certain previously reported amounts for the year ended June 30, 2012 have been reclassified to conform to the June 30, 2013 classifications.

26

CFTY OF YOUNGSVILLE, LOUISIANA


(2) Ad Valorem Taxes

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

For the year ended June 30, 2013, taxes of 11.68 mills were levied on property with assessed valuations totaling $75,994,133 and were dedicated for general corporate purposes (3.82 mills), fire protection (4.86 mills), and water services (3 mills).

Gross taxes levied for the current fiscal year totaled $887,769. The taxes are remitted to the City net of deductions for pension fund contributions.

(3) Sales and Use Tax

A. Proceeds of a 1 percent sales and use tax, accounted for in the 1968 Sales Tax Special Revenue Fund, (2013 collections $1,818,084) were rededicated on September 30, 2006 and are dedicated to constructing, acquiring, extending, improving and/or maintaining sewers and sewerage disposal works, waterworks, public streets, roads, alleys, sidewalks, and drainage facilities, including the purchase of equipment therefore. The tax proceeds may also be funded into bonds or used to pay any bonded or funded indebtedness of the City incurred for such capital purposes, to the extent and in the manner provided by state law. As of June 30, 2013, the net sales tax proceeds are dedicated to paying the City's $5,000,000 2009 Sales Tax Bonds and all of the City's outstanding revenue bonds.

B. Proceeds of a 1% sales and use tax levied by the City of Youngsville, accounted for in the 1981 Sales Tax Special Revenue Fund (2013 collections $1,818,084, of which $546,934 was transferred to the General Fund as per special election) are dedicated to providing funds to maintain the City's police force and law enforcement facilities, including the acquisition of equipment and furnishings therefore, the construction and/or acquisition of buildings to house such facilities and paying employees* and policemen's salaries.

On November 15, 2012, a special election was held at which time the citizens of the City voted to rededicate, 50% of the 1981 Sales Tax revenues to the General Fund for a period of two years beginning January I, 2013 and ending December 31, 2014. In addition to the uses authorized in the original sales tax dedication, the rededicated tax may be used to pay for constructing, improving, and maintaining works of public improvement and acquiring equipment therefore; constructing, acquiring, operating and maintaining fire protection facilities and acquiring equipment and furnishings therefore and paying fire department salaries and benefits.

C. Proceeds of a 1/2% percent sales and use tax, accounted for in the 1999 Sales Tax Special Revenue Fund, (2013 collections $909,042) beginning September 1, 2000 are dedicated for constructing, acquiring, improving, maintaining and operating sewers and sewerage disposal works for the City, and to be fimded into bonds to pay the capital costs thereof, to the extent and in the manner provided by state law. As of June 30, 2013, the net sales tax proceeds are dedicated to paying the City's $848,000 Sales Tax Refiinding Bonds, the 2010 Sewer Revenue Bonds, and the Sewer Revenue Refunding Bonds,

27



D. Proceeds of a 1% percent sales and use tax, accounted for in the Recreational Facility Sales Tax Special Revenue Fund, (2013 collections $1,751,848) beginning April 1, 2012 are dedicated for the payment of revenue bonds associated with the acquisition, construction and equipping of a Community Center and related infrastructure and recreational facilities and ongoing operation and maintenance expenses of the facilities, and for any and all other lawful purposes for which the tax may be expended. As of June 30, 2013, the net sales tax proceeds are dedicated to paying the City's $10,000,000 Recreational Facility Sales Tax Revenue Bonds, dated May 23, 2012, and the City's $9,500,000 Recreational Facility Sales Tax Revenue Bonds, dated May 2,2013.

(4) Cash and Interest-Bearing Deposits

Under state law, the City may deposit funds within a fiscal agent bank organized under the laws of the State of Louisiana, the laws of any other state in the Union, or the laws of the United States. The City may invest in certificates and time deposits of the state banks organized under Louisiana law and national banks having principal offices in Louisiana. At June 30, 2013, the City had cash and interest-bearing deposits (book balances) totaling $26,062,529, as follows:

Demand deposits $ 6,908,274 Money market accounts 17,645,633 Time deposits 1,508,622

Total $26.062.529 Custodial credit risk for deposits is the risk that in the event of the failure of a depository

financial institution, the City's deposits may not be recovered or will not be able to recover collateral securities that are in the possession of an outside party. These deposits are stated at cost, which approximates market. Under state law, these deposits, (or the resulting bank balances) must be secured by federal deposit insurance or similar federal security or the pledge of securities owned by the fiscal agent bank. The market value of the pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agent bank. These securities are held in the name of the City or the pledging fiscal agent bank by a holding or custodial bank that is mutually acceptable to both parties. Deposit balances (bank balances) at June 30,2013, are secured as follows:

Bank balances $26,065,568

Federal deposit insurance 1,267,388 Pledged securities (category 3) 24,798,180 Total $26,065,568

Deposits in the amount of $24,798,180 were exposed to custodial credit risk. These deposits are uninsured and collateralized with securities held by the pledging institution's trust department or agent, but not in the City's name (Category 3 deposits). The City does not have a policy for custodial credit risk.

28

(5)

CITY OF YOUNGSVILLE, LOUISL\NA


Investments

As of June 30, 2013, the City had investments in U.S. treasury obligations in the amount of $5,213,369, which represents 100% of the City's investments as of this date. They are being held as a temporary account for the construction of street improvement projects in the City. These investments mature in less than one year and are recorded at fair value. Fair value was determined by obtaining "quoted" year-end market prices. The investments are rated AAA by Standard and Poor's and are guaranteed by the U.S. government. Accordingly, there is no interest rate risk or credit risk associated with these investments.

For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The investments are in the name of the City. Accordingly, the City had no custodial credit risk related to investments at June 30, 2013. The City's does not have a policy for custodial credit risk

(6) Receivables

Receivables at June 30, 2013 of $1,065,220 consist of the following:


General Fund

Accounts (net) $ -Unbilled accounts Sales tax CnhcT 47,843 Interest -

Totals

Recreational 1968 Sales 1981 Sales Facilities Tax Fund Tax Fund Sales Tax $ $

495,170 159.574

139

$ 47,843 $495,170 $ 139 $ 159,574

Street Impr. and

Const.Fund $ -

-

--

2,178 $2,178

Business-type Activities

Utility Fund

$ 255,743 104,516

--

57 $360,316

$

Total 255,743 104,516 654,744 47.843 2.374

$ 1,065,220

(7) Due from (3ther Governmental Units

General Fund: Due from the Louisiana Municipal Advisory and Technical Services Bureau for insurance occupational licenses for the months of May and June, 2013.

Due from the State of Louisiana for beer tax revenues for the second quarter ending June 30,2013.

Street Improvements and Construction Fund: Due fi-om the State of Louisiana for reimbursement of expenditures incurred for the Chemin Metairie Parkway Phase II and the Savoy Road improvement projects.

Total

$ 70,855

3,839 74,694

546,362

$ 621,056

29



(8) Capital Assets

Capital asset activity for the year ended June 30,2013 was as follows:

Governmental activities: Capital assets not being depreciated:

Land Construction in progress

Other capital assets: Buildings Infrastructure Equipment

Totals Less accumulated depreciation

Buildings Infrastructure Equipment

Total accumulated depreciation

Governmental activities. capital assets, net

Business-type activities: Capital assets not being depreciated:

Land - sewer system Construction in progress

Other capital assets: Buildings Water system Sewer system Machinery and equipment

Totals Less accumulated depreciation

Water system Sewer system Machinery and equipment

Total accumulated depreciation Business-type activities.

capital assets, net

Balance 07/01/12

$ 753,729 5,214,583

2,381.634 20,827,695

1,632,803 30,810,444

340,127 1,712,391 1,150,625 3,203,143

$27,607,301

$ 236.829 550,468

243,757 6,743,456 9,806,545 1,438,007

19,019.062

2,215,310 2,440,698

362,024 5,018,032

$14,001,030

Additions

$ 66,204 14,476,646

12.805 1,459,861

119,145 16,134,661

60,018 612,308 164,327 836,653

$15,298,008

$ 1,361,437

--

988,336 26.510

2,376,283

219,610 255,458 82.285

557,353

$ 1,818.930

Deletions

$

1,378,123

-

-

143,193 1,521,316

-

-

139,944 139,944

$ 1,381.372

$

980,457

-

--

3,000 983,457

-

-

3,000 3.000

$ 980,457

Balance 06/30/13

$ 819.933 18.313,106

2,394,439 22,287.556

1,608,755 45,423,789

400,145 2,324.699 1.175.008 3.899.852

$41,523,937

$ 236,829 931.448

243.757 6,743,456

10,794,881 1,461,517

20,411,888

2,434,920 2,696,156

441.309 5,572,385

$14,839,503

Construction in progress of $18,313,106 in the governmental activities consists mainly of work performed through June 30, 2013 on the Chemin Metairie Parkway Phase II project ($10,551,421) and the Recreational Facility ($5,132,161). Construction in progress of $931,448 in the business-type activities consists mainly of work performed through June 30.2013 on various sewer projects.

30



Depreciation expense was charged to governmental activities as follows:

General government $ 29,306 Police 117,593 Fire 535 Streets 688,878 Culture and recreation 341

Total depreciation expense $ 836,653

Depreciation expense was charged to business-type activities as follows: Water $ 292.363 Sewer 264,990

Total depreciation expense $ 557,353

(9) Restricted Assets

Restricted assets consisted of the following at June 30,2013:

Chemin Metairie Parkway construction account Recreational Facility construction account Street improvements account Street improvements time deposits Street improvements - investments (project) Bond and interest sinking account Bond reserve account Bond contingency account Customers' deposits Revenue bond construction account LCDBG sewer construction account Ad valorem tax water account

Total restricted assets

(10) Accounts. Salaries, and Other Payables

The accounts, salaries, and other payables consisted of the following at June 30,2013:

Accounts Contracts and retainage Other liabilities

Totals

Governmental Activities .

$ 136.772 14,496.115

319,267 507,492

4,874,128 1,985,914 1,764,501

-

--

--

$24,084,189


$ --

-

-

175,595 378,038 221.954 229,987 704,613

4,669 194,086

$1,908,942

Total $ 136.772

14,496,115 319,267 507,492

4,874,128 2,161,509 2,142,539

221,954 229,987 704,613

4,669 194,086

$25,993,131


$ 145,194 3,207,211

55,720 $3,408,125

Business-Type Activities $183,817

194,345 9,902

$388,064

Total $ 329,011 3,401.556

65.622 $3,796,189

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(11)



Changes in Long-Term Debt

The following is a summary of long-term debt transactions of the City for the year ended June 30,2013:

Long-term debt payable. July 1,2012 Long-term debt issued Long-term debt retired

Long-term debt payable. June 30, 2013


General Obligation

Bonds $24,991,000

12,373,000 (2,819,000)

$34,545,000

Capital Lease

$ 65.344

(55.785) $ 9,559

Business-type Activities

Revenue Bonds

$ 6,269,000

(1.565,000) $ 4,704,000

Long-term debt payable at June 30,2013 is comprised of the following:

General Obligation bonds -

$5,000,000 2009 Sales Tax Bonds, dated May 1, 2009; due in annual installments of $175,000 to $395,000 through May 1, 2029; interest at 4.475 percent, payable from 1968 sales tax revenues, rededicated in 2006

$8,140,000 2011 Revenue Bonds, dated June 1,2011; due in annual installments of $155,000 to $480,000 through July 1, 2041; interest at 4.625 percent, payable fi-om 1968 sales tax revenues, rededicated in 2006

$10,000,000 2012 Recreational Facility Sales Tax Revenue Bonds, dated May 23. 2012; due in annual installments of $350,000 to $680,000 through December 1, 2032; interest at 3.45 percent, payable from 2012 sales tax revenues.

$2,025,000 2012 Limited Tax Revenue Bonds, dated December 5, 2012; due in annual installments of $211,000 to $257,000 through May 1. 2021; interest at 2.25 percent, payable from ad valorem tax revenues.

$848,000 2013 Sales Tax Refiinding Bonds, dated January 31, 2013; due in annual installments of $71,000 to $87,000 through June 1,2023; interest at 2.131 percent, payable from 1999 sales tax revenues.

$9,500,000 2013 Recreational Facility Sales Tax Bonds, dated May 2, 2013; due in annual installments of $510,000 to $570,000 through December 1,2033; interest at 3.625 percent, payable from 2012 sales tax revenues.

Total general obligation bonds payable

Less; Discount on issuance of debt

Net general obligation bonds payable

$ 4,375,000

8,000,000

10,000,000

1,880,000

790,000

9,500,000

34,545.000

(101,748)

$34,443,252

32



Capital leases -

$54,495 tractor lease dated September 15, 2010, due in monthly installments of $1,599, including interest at 3.59%. through September 15, 2013. secured by General Fund revenues $ 4.775

$81,532 escavator lease dated August 15, 2010, due in monthly installments of $2,404, including interest at 3.90%, through August 15, 2013. secured by General Fund revenues 4J^4

$ 9,559

Revenue bonds -

$4,429,000 Sewer Revenue Bonds, Series 2010 dated June 28, 2010; due in annual installments of $204,000 to $242,000 through May 1, 2031; interest at .95%; secured by Utility Fund revenues, 1968 sales tax revenues, rededicated in 2006. and 1999 sales tax revenues $4,023,000

$600,000 Water Revenue Bonds, Series 2009 dated April 6. 2009; due in annual installments of $35,000 to $55,000 through May 1, 2024; interest at 3.73 percent; secured by Utility Fund revenues and 1968 sales tax revenues, rededicated in 2006 480,000

$333,000 Sewer Revenue Refiinding Bonds. Series 2009 dated June 25, 2009; due in annual installments of $36,000 to $42,000 through May 1. 2019; interest at 3.7 percent; secured by Utility Fund revenues, 1968 sales tax revenues, rededicated in 2006, and 1999 sales tax revenues 201,000

Total revenue bonds payable 4,704,000

Less: Unamortized loss on bond refiinding (14,957)

Net revenue bonds payable $4,689,043

In June 2010. the City issued $4,429,000 of .95% interest bearing sewer revenue bonds for the purpose of acquiring, constructing, and installing improvements, extensions and additions to the sewerage system of the City. The bonds were sold to tiie Louisiana Department of Environmental Quality, Clean Water State Revolving Fund (the "Department"). At June 30. 2012, $3,764,564 had been expended on projects and received from the Department. As of June 30. 2013. the remaining $664,436 of bond proceeds was received by the City.

33



The long-term debt is due as follows:

Governmental Activities Bonds

Year ending June 30,

2014 2015 2016 2017 2018

2019-2023 2024-2028 2029-2033 2034^2038 2039-2043

Principal payments

$ 1,518,000 1.454,000 1.411.000 1,453,000 1,495,000 7,664,000 7,775,000 7,590,000 2,385.000 1,800,000

Interest payments

$ 962,410 1,105,904 1,073,807 1,040.492 1.004,165 4.369,305 3.146.633 1,675,870

680,787 181,300

Capital Lease Principal payments

Interest payments

$ 9,559 $ 53

Business-type Activities Bonds

Principal payments

$ 278,000 282,000 290,000 294,000 288,000

1,344,000 1,209,000

719,000

Interest payments

$ 31,677 28,678 25,602 22,300 18.920 57,425 13,201 2,273

Total $34.545,000 $15,240,673 $ 9,559 $ 53 $4,704,000 $ 200.076

(12) Current Year Refundings

On December 5, 2012, the City issued $2,025,000 of Limited Tax Refiinding Bonds, Series 2012 with an interest rate of 2.25%. The bonds were issued at par and after paying issuance costs of $49,918. the net proceeds were $1,975,082. The net proceeds plus $389,353 fi-om existing fiinds were used to currently refund $692,000 of outstanding Fire Station Bonds dated February 28. 2007 with an interest rate of 4.23%, $362,000 of outstanding Fire Station bonds dated November 29, 2007, $260,000 of outstanding 2004 Water Revenue Refunding Bonds with and interest rate of 3.70% and $1,030,000 of 2006 Water Revenue Bonds with an interest rate of 4.1% plus accrued interest and administrative fees. As a result of the current refunding the City reduced its total debt service requirements by $579,839, which resulted in an economic gain (difference between the present values of the debt service fund payments on the old and new debt) of $142,513.

On January 31, 2013, the City issued $848,000 of Sales Tax Refiinding Bonds, Series 2013 with an interest rate of 2.131%. The bonds were issued at par and after paying issuance costs of $28,749, the net proceeds were $819,251. The net proceeds plus $350,399 from existing fiinds were used to currently refund $1,162,000 of outstanding Sales Tax Bonds, Series 2003 with an interest rate of 3.45% plus accrued interest and administrative fees. As a result of the current refunding the City reduced its total debt service requirements by $349,513, net of the existing ftind payment, which resulted in an economic gain (difference between the present values of the debt service fund payments on the old and new debt) of $96,209.

34



(13) Prior Year Debt Defeasance

In prior years, the City defeased $230,000 of 1994 water revenue bonds and $520,000 of 1997 water revenue bonds by creating a separate irrevocable trust fiind. The investments and fixed earnings from the investments are sufficient to fiilly service the defeased debt until the debt is called or matures. For financial reporting purposes, the debt has been considered defeased and therefore, has been removed as a liability fi-om the Ciity's financial statements. As of June 30, 2013. the amount of defeased water revenue debt outstanding but removed from the financial statements amounted to $30,000 of 1994 water revenue bonds and $215,000 of 1997 water revenue bonds.

(14) Flow of Funds: Restrictions on Use - Utilities and Sales Tax Revenues

Utility Revenue Bonds:

A. Under the terms of the bond indentures on outstanding Water Revenue Bonds, Series 2009 dated April 6. 2009, all income and revenues (hereinafter referred to as revenue) of every nature, earned or derived from operation of the Utility System, are pledged and dedicated to the retirement of said bonds, and are to be set aside into the following special funds:

Each month, there will be set aside into a fund called the "City of Youngsville Water Revenue Bond Sinking Fund" (the "Sinking Fund") a sum equal to 1/6 of the interest falling due on the next interest payment date, and a sum equal to 1/12 of the principal falling due on the next principal date on all bonds payable fi-om the Sinking Fund. Transfers fi-om the Sinking Fund should be made to the paying agent bank at least three (3) days in advance of the date on which the payment of principal or interest falls due.

There shall also be set aside into a "City of Youngsville Water Revenue Bond Reserve Fund" (the "Reserve Fund) a sum equal to 20% of the amount required to be paid into the Sinking Fund for each month until such time as there has been accumulated therein a sum equal to the Reserve Fund requirement of $284,554 through 2015. Such amounts may be used only for the payment of maturing bonds and interest on all bonds payable from the Sinking Fund as to which there would otherwise be default.

Funds will also be set aside into a "City of Youngsville Water Revenue (Capital Additions and Contingencies Fund" (the "Contingencies Fund"), the sum of $20,000. Money in this fiind may be used to care for extensions, additions, improvements, renewals and replacements necessaiy to properly operate the System. Money in this fund may also be used to pay principal or interest on the bonds falling due at any time there is not sufficient money for payment in the other bond fiinds. However, the balance may not fall below $10,000.

Additionally, rates should be established and collected in order to generate net operating revenue from the System each year at least equal to 130% of the Reserve Fund requirement.

35



B. Under the terms of the bond indentures on outstanding Sewer Revenue Bonds. Series 2010 dated June 28. 2010 and Sewer Revenue Refiinding Bonds. Series 2009 dated June 25. 2009. all income and revenues (hereinafter referred to as revenue) of every nature, earned or derived from operation of the Utility System, are pledged and dedicated to the retirement of said bonds, and are to be set aside into the following special funds:

Each month, there will be set aside into a fund called the "Sewer Revenue Bond and Interest Sinking Fund" (the Sinking Fund"), an amount sufficient to pay promptly and fully the principal and interest on the outstanding bond by transferring monthly in advance on or before the 20* day of each month a sum equal to the total amount of principal and interest accruing on the bonds for said month. Transfers from the Sinking Fund should be made to the paying agent bank at least three (3) days in advance of the date on which the payment of principal or interest falls due.

There shall also be set aside into a "Sewer Revenue Bond Reserve Fund" (the "Reserve Fund") a sum equal to 25% of the amount required to be paid into the Sinking Fund for each month until such time as there has been accumulated therein a sum equal to the Reserve Fund requirement, which amounts to $144,718 through 2016. Such amount may be used only for the payment of maturing bonds and interest for which sufficient funds are not on deposit in the Sinking Fund and as to which there would otherwise be default.

Funds will also be set aside into a "Sewer Depreciation and Contingency Fund" (the "Contingency Fund") to care for depreciation, extensions, additions, improvements and replacements necessary to properly operate the System by transferring monthly in advance on or before the 20* day of each month until a sum equal to five percent (5%) of the net revenues for the preceding month, until $100,000 is on deposit therein. Money in this fund shall be used to pay principal and interest on any bonds for the payment of which there is not sufficient money in the Sinking Fund or the Reserve Fund, but if so used, such money shall be replaced as soon as possible thereafter.

Additionally, rates should be established and collected in order to generate net operating revenue from the System each year at least equal to 125% of the Reserve Fund requirement.

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

Sales Tax Revenue Bonds:

C. Under the terms of the bond indentures on outstanding Sales Tax Bonds dated May 1,2009 and June 1,2011. all proceeds derived from the levy and collection of the 1968 sales tax are pledged and dedicated to the retirement of said bonds, and are to be set aside into the following special funds:

36



Each month, there will be set aside into funds called the "Sales Tax Bond Sinking Fund , amounts constituting 1/12 of the interest, administrative fee, and principal due on the outstanding bonds for the bond year. Such transfers shall be fully sufficient to assure the prompt payment of principal and interest installments as they become due and may be used only for such payments.

There will be set aside into a fund called the "Sales Tax Bond Reserve Fund - 2009" an amount of $414,158, a sum equal to the highest combined principal and interest in any future bond year. Such amounts may be used only for the payment of maturing bonds and interest for which sufficient funds are not on deposit in the Bond and Interest Sinking Funds and as to which there would otherwise be default.

D. Under the terms of the bond indenture on outstanding Recreational Facility Sales Tax Revenue Bonds dated May 23, 2012 and May 2, 2013, all proceeds derived from the levy and collection of the 2012 recreational facility sales tax are pledged and dedicated to the retirement of said bonds, and are to be set aside into the following special funds:

Each month, there will be set aside into funds called the "Sales Tax Bond Sinking Fund - 2012", amounts constituting 1/12 of the interest and principal due on the outstanding bonds for the bond year. Such transfers shall be fully sufficient to assure the prompt payment of principal and interest installments as they become due and may be used only for such payments.

There will be set aside into a fimd called the "Sales Tax Bond Reserve Fund - 2012" an amount of $1,349,745 a sum equal to the highest combined principal and interest in any future bond year. Such amounts may be used only for the payment of maturing bonds and interest for which sufficient funds are not on deposit in the Bond and Interest Sinking Funds and as to which there would otherwise be default.

E. Under the terms of the bond indenture on outstanding Sales Tax Refunding Bonds dated January 31, 2013, all proceeds derived from the levy and collection of the 1999 sales tax are pledged and dedicated to the retirement of said bonds, and are to be set aside into the following special funds:

Each month, there will be set aside into funds called the "Sales Tax Bond Sinking Fund - 2013", amounts constituting 1/12 of the interest and principal due on the outstanding bonds for the bond year. Such transfers shall be fully sufficient to assure the prompt payment of principal and interest installments as they become due and may be used only for such payments.

The City of Youngsville was in compliance with all significant limitations and restrictions in the bond indentures at June 30, 2013.

37

CFTY OF YOUNGSVILLE. LOUISIANA


(15) Employee Retirement

All City of Youngsville employees, with the exception of those participating in the Municipal Police Employees' Retirement System, participate in the Social Security System. The City and its employees contribute a percentage of each employee's salary to the System (7.65% contributed by the City, 7.65% by the employee). The City's contribution during the years ended June 30, 2013, 2012 and 2011 amounted to $104,806, $85,373, and $89,033 respectively.

The Chief of Police of the City of Youngsville elected to participate in the Municipal Police Retirement System of Louisiana effective April 1, 1989. This system is a cost-sharing, multiple-employer defined benefit public employee retirement plan (PERS) controlled and operated by a separate board of trustees. All full time police department employees engaged in law enforcement, empowered to make arrests, not having to pay social security and meeting the state statutory criteria are required to participate in the System. Pertinent information relative to this plan follows:

Municipal Police Employees Retirement System of Louisiana (System)

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

The System issues an annual publicly available financial report that includes financial statements and required supplementary information for the System. That report may be obtained by writing to the Municipal Police Employees Retirement System of Louisiana, 8401 United Plaza Boulevard, Baton Rouge, Louisiana 70809-2250, or by calling (225) 929-7411.

Funding Policy - Plan members are required by state statute to contribute 10% of their annual covered salary and the City is required to contribute at an actuarially determined rate. Thecurrent rate is 31% of armual covered payroll. The contribution requirements of plan members and the City are established and may be amended by state statute. As provided by R.S. 11:103, the employer contributions are determined by actuarial valuation and are subject to change each year based on the results of the valuation for the prior fiscal year. The City's contribution to the System for the years ended June 30,2013, 2012 and 2011 was $44,377, $28,731, and $57,764. respectively, equal to the required contributions for each year.

38



(16) Segment Information for the Enterprise Fund

The City of Youngsville maintains one enterprise fund with three departments which provide water, sewerage and sanitation services. Segment information for the year ended June 30, 2013, was as follows:

Total Water Sewerage Sanitation Enterprise

Department Department Department Fund Operating revenues

Operating expenses: Depreciation Other


Operating income (loss)

$1,537,554

292,363 1,207,916 1,500,279

$ 37,275

$ 706,809

264.990 573.206 838,196

$(131,387)

$657,646

-

643,911 643,911

$ 13,735

$2,902,009

557,353 2,425,033 2,982,386

$ (80,377)

(17) Compensation of City Officials

A detail of compensation paid to the Mayor and Board of Aldermen for the year ended June 30,2013 follows:

Wilson Viator, Mayor

Aldermen: Tim Barbier A.J. Bernard Brenda Burley Ken Ritter Dianne McClelland

$ 56,400

9,840 9.840

10,800 9.240 9,840

$105,960

(18) Risk Management

The City is exposed to risks of loss in the areas of health care, general and auto liability, property hazards and workers' compensation. All of these risks are handled by purchasing commercial insurance coverage. There have been no significant reductions in the insurance coverage during the year, nor have settlements exceeded coverage for the past three years.

39



(19) Pending Litigation

The City is a defendant in a lawsuit filed by a vendor. Management is of the opinion that monetary damages would be minimal, in the event the City is unsuccessful in its defense. No accrual was recorded at June 30,2013.

(20) Interfund Transactions

A. Receivables and Payables

Interfund receivables and payables consisted of the following at June 30,2013:

Due to the General Fund from the Utility Fund for reimbursement for expenditures paid $ 687,796

Due to the General Fund from the 1981 Sales Tax Fund for reimbursement for expenditures paid 187,628 Due to the 1968 Sales Tax Fund from the Street and Improvements

Construction Fund for reimbursement for expenditures paid 781,821 Due to the 1968 Sales Tax Fund from the General Obligation Bonds

Fund for reimbursement for expenditures paid 510.200 Due to the 1981 Sales Tax Fund from the 1968 Sales Tax Fund for reimbursement for expenditures paid 198,068

Due to the 1999 Sales Tax from the 1968 Sales Tax Fund for reimbursement for expenditures paid 99,034

Due to the General Obligation Bonds Fund from the General Fund for reimbursement for expenditures paid 569,224

Due to the General Obligation Bonds Fund from the Recreational Facility Construction Fund for reimbursement for expenditures paid 169.242

Due to the Street Improvements and Construction Fund from the Utility Fund for reimbursement for expenditures paid 585,455

Due to the Recreational Facility Construction Fund from the 1999 Sales Tax Fund for reimbursement for expenditures paid 95,500

Due to the Utility Fund from the 1968 Sales Tax Fund for reimbursement for expenditures paid 195,479

Due to the Utility Fund from the 1999 Sales Tax Fund for reimbursement for expenditures paid 226.185

Other 215,978 Total $4,521,610

Summary of balances due from other fiinds reported in fund financial statements:

Due fi^m other funds. Balance Sheet - Governmental Funds $ 4.099.948 Due from other funds, Statement of Net Assets - Proprietary Funds 421,662

Total $4,521,610

40



B. Transfers

Transfers consisted of the following at June 30.2013:

Transfers In Transfers Out Major governmental funds:

General Fund 1968 Sales Tax Special Revenue Fund 1981 Sales Tax Special Revenue Fund 1999 Sales Tax Special Revenue Fund Recreational Facility Sales Tax Special Revenue General Obligation Bonds Fund Recreational Facility Construction Fund

Total governmental funds Proprietary Fund:

Enterprise Fund Total

$ 6.689 -

--

-

3,745,593 68,243

3,820,525

2,472.630 $6,293,155

$ 1,943,113

-

1,716,183 723,594 914,111 996,154

6,293,155

-

$6,293,155

Transfers are used to (a) move revenues from the fiind that statute or budget requires to collect them to the fiind that statute or budget requires to expend them and to (b) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

(21) New Accounting Pronouncements

In April 2012, the Governmental Accounting Standards Board (GASB) issued Statement No. 65. "Items Previously Reported as Assets and Liabilities." This statement clarifies the appropriate reporting of deferred outflows of resources and deferred inflows of resources to ensure consistency in financial reporting. The provisions of GASB No. 65 must be implemented by the City for the year ending June 30, 2014. The effect of implementation on the City's financial statements has not yet been determined.

In June 2012, the GASB approved Statement No. 67, "Financial Reporting for Pension Plans" and Statement No. 68. "Accounting and Financial Reporting for Pensions." GASB Statement No. 67 replaces the requirements of GASB Statement Nos. 25 and 50 relating to financial reporting and note disclosures of pension plans. GASB Statement No. 68 establishes accounting and financial reporting requirements related to pensions for governments whose employees are provided with pensions through plans covered by Statement No. 67. The provisions of GASB Statement No. 67 must be implemented by the pension plans for the year ending June 30, 2014 and provisions of GASB Statement No. 68 must be implemented by the City for the year ending June 30. 2015. The effect of implementation on the City's financial statements has not yet been determined.

(22) Subsequent Event Review

The City's management has evaluated subsequent events through December 23,2013, the date which the financial statements were available to be issued.

41

REQUIRED SUPPLEMENTARY INFORMATION

42

CITY OF YOUNGSVILLE, LOUISIANA General Fund

Budgetary Comparison Schedule For the Year Ended June 30,2013

Revenues: Taxes Licenses and permits Intergovernmental Fines and forfeits Miscellaneous

Total revenues

Bud Original

$1,100,000 462,000 41,000 75,000 22,600

get Final

$1,502,116 731,238

10,176 264,275

53,167

Actual

$1,595,715 769,798

14,853 263,329 45.123

Variance with Final Budget

Positive (Negative)

$ 93,599 38,560 4,677 (946)

(8,044)

1,700,600 2,560,972 2,688,818 127,846


Genera! government Public safety:

Fire Streets

Capital outlay Debt service

Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources (uses): Transfer from (to) Utility Fund Transfer from Recreational Facility Sales Tax Fund Transfer from Debt Service Fund

Total other financing sources (uses)

Net change in fund balance

Fund balance, beginning

Fund balance, ending

1,081,810

282,100 534,200 68,500 3,500

1,970,110

(269,510)

415,000 --

415,000

145,490

923,538

$1,069,028

1,249.066

322,934 499,840

5.730 60,360

2,137,930

423,042

_

---

423.042

923,538

$1,346,580

1,243,634

346,012 570,091 23,991 57,220

2,240,948

447,870

(2,364) 486

8,567 6,689

454,559

923,538

$1,378,097

5,432

(23,078) (70,251) (18,261)

3,140

(103,018)

24,828

(2,364) 486

8,567

6,689

31.517

_

$ 31,517

43

CITY OF YOUNGSVILLE, LOUISIANA 1968 Sales Tax Special Revenue Fund





Budget Original Final Actual

200,026 (236,845) (137,494)

1.483,426 1,483,426 1,483,426


Positive (Negative)

Revenues: Taxes Miscellaneous - interest

Total revenues


General government: Sales tax collection fees Professional fees Office expense

Total expenditures

Excess of revenues over expenditures

Other financing uses: Transfer to Debt Service Fund Transfer to Utility Fund

Total other financing uses

$1,500,000 -

1,500,000

6,500 507,000

-

513.500

986,500

(371,474) (415,000) (786,474)

$1,723,448 -

1,723,448

10,277 6,715

188 17,180

1.706.268

(1.943,113) -

(1,943,113)

$1,818,084 496

1,818,580

7,371 5,590 -

12,961

1,805,619

(1,943,113) -

(1,943,113)

$ 94,636 496

95,132

2,906 1,125

188 4,219

99,351

--

.

99,351

$1,683,452 $1,246,581 $1.345,932 $ 99,351

44

CTTY OF YOUNGSVILLE, LOUISL\NA 1981 Sales Tax Special Revenue Fund

Budgetaiy Comparison Schedule For the Year Ended June 30,2013


Total revenues

Budget Original Final Actual

1,505,700 1,287,293 1,280,215


Positive (Negative)

$1,500,000 $1,284,508 $ 1,271,150 $ (13,358) 5.700 2.785 9,065 6.280

(7.078)


General government Police Capital outlay

Total expenditures

6,500 1,272,015

130,000 1,408,515

10,277 1,155.483

90,000 1,255,760

12,836 1,212,597

91,324 1,316.757

(2,559) (57,114) (1,324)

(60,997)

Net change in fund balance 97,185 31,533 (36.542) (68,075)

Fund balance, beginning 1,621,612 1,621,612 1,621,612

Fund balance, ending $1,718,797 $1,653.145 $ 1,585,070 $ (68,075)

45

CFTY OF YOUNGSVILLE. LOUISIANA 1999 Sales Tax Special Revenue Fund



Total revenues


General government: Sales tax collection fees Professional fees Office expenditures

Total expenditures

Excess of revenues over expenditures

Other financing uses: Transfer to Debt Service Fund Transfer to Utility Fund





Budget Original

$ 750,000

750,000

3,250 4.500

7,750

742,250

(131,899) (1.250,000) (1,381,899)

(639,649)

1,616,466

$ 976,817

Final

$ 861,724 973

862,697

5,139 6,300

82

11,521

851,176

(131,899) (1,564.722) (1,696,621)

(845,445)

1,616,466

$ 771,021

Actual

$ 909,042 978

910,020

3.686 4,465

17

8.168

901.852

(151,461) (1,564,722) (1,716,183)

(814,331)

1,616,466

$ 802,135


Positive (Negative)

$ 47.318 5

47,323

1,453 1,835

65

3,353

43,970

(19,562)

(19.562)

24.408

_

$ 24,408

46

CITY OF YOUNGSVILLE, LOUISIANA Recreational Facilities Sales Tax Special Revenue Fund



Total revenues

Expenditures: General government: Culture and recreation Capital outlay

Total expenditures

Budget Original

$1,500,000

1,500.000

14,355 30,000

230,000 274,355

Final

$1,723,448 1,093

1,724,541

30,277 55,785 22,000

108,062

Actual

$1,751,848 2,077

1,753.925

28.679 55,236 22,007

105,922

Variance wit! Final Budget

Positive (Negative)

$ 28,400 984

29.384

1,598 549

(7) 2,140

Excess of revenues over expenditures ,225,645 1,616,479 1,648,003 31,524

Other financing uses: Transfer to General Fund Transfer to Capital Projects Fund Transfer to Debt Service Fund


(68,243) (663.219) (731,462)

(486) (68,243)

(654,865) (723.594)

486

8,354

8,840

Net change in fiind balance 1,225,645 885,017 924,409 40.364

Fund balance, begirming

Fund balance, ending $1,225,645 $ 885,017 $ 924,409 $ 40,364

47

OTHER SUPPLEMENTARY INFORMATION

48


Statement of Net Position June 30, 2013

With Comparative Totals for June 30, 2012

2013


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


Noncurrent assets: Restricted assets:

Cash and interest-bearing deposits Investments

Unamortized bond issuance costs Capital assets:

Land and construction in progress Capital assets, net


Total assets


$ 4,392,322 704,904 885,466 621,056 27,798

6.631,546

18,870,820 5.213,369

638.972

19,133,039 22,390,898 66,247,098

72.878.644


$ 890,445 360.316

(885,466) -

19,128 384,423

1,908.942 -

53,457

1,168,277 13,671,226 16,801,902

17,186,325

Total

$ 5,282,767 1,065,220

-621,056 46,926

7,015,969

20,779,762 5,213,369

692,429

20,301,316 36.062,124 83,049.000

90,064,969

2012 Total

$ 4,085,226 807,658

-895,049 51,619

5.839,552

15.678,094 6,696,372

726,778

6.755,609 34,852.722 64,709,575

70,549,127

LIABILITIES Current liabilities:

Accounts, salaries and other payables Capital lease payable Bonds payable Accrued interest


Noncurrent liabilities: Customers' deposits Capital lease payable Bonds payable


Total liabilities

NET POSITION Invested in capital assets, net of related debt Restricted for debt service Restricted for water fund operations Unrestricted

Total net position

3,408,125 9,559

1,518,000 166,823

388,064

278,000 10,448

3,796,189 9,559

1.796.000 177,271

2,176,415 55,785

1,286.000 164,248

5,102,507

.

-32,925,252 32,925.252

38.027.759

24.836,662 3.748,689

-6,271.324

$34,856,675

676.512

229,987 -

4,411,043 4,641,030

5,317,542

10.996.854 487,139 194,086 190,704

$ 11,868,783

5,779,019

229,987 -

37.336,295 37.566,282

43.345,301

35.833,516 4,235.828

194,086 6,462,028

$46,725,458

3,682,448

205,312 9,559

29,288,366 29,503.237

33,185,685

29,535,298 2,363,529

41,870 5.422,745

$37,363,442

49


Balance Sheet General and Special Revenue Funds

June 30.2013 With Comparative Totals for June 30. 2012

ASSETS

Cash and interest-bearing deposits Receivables:

Taxes Accrued interest Due from other governmental units Due from other funds Other

Inventory

Prepaid items

Total assets

General 2013

$1,099,479

--

74,694 875,864

47.843 -

14,104

$2,111,984

$

2012

766,683

--

57,868 860,512

8,170 -

20.888

$1,714,121

1968 Sales Tax Revenue

2013

$ 921

495.170 --

1.342.421 --.

$1,838,512

2012

$ 2.512

339.758 --

1,540.489 ---

$1,882,759


2013

$1,581,998

-139

-215.667

--

13.694

$1,811,498

2012

$1,513,261

-104

-157.790

--

12.655

$1,683,810


2013

$ 991,534

---

132,286 ---

$1,123,820

2012

$ 989.731

---

329.484 ---

$1,319,215

Recreational Facility Sales Tax Revenue 2013

$718,390

159,574 --

54.028 -

5.790 -

$ 937.782

2012

$ 41.827

133.366 --

54,029 ---

$229,222

LIABILITIES AND FUND BALANCES

Liabilities: Accounts payable Accrued liabilities

Due to other funds

Total liabilities

Fund balances -Nonspendable (prepaid items) Restricted for sales tax

dedications

Unassigned

Total fund balances

Total liabilities and fund balances

$ 85,449 29,214

619.224

733.887

14.104

546,934 1,363.993

1.378.097

$2,111,984

$ 74.501 23.614

692.468

790,583

20.888

-

902.650

923,538

$1,714,121

$ -

492,580

492.580

-

1.345,932 -

1,345,932

$1,838,512

$ -

399.333

399.333

-

1.483.426 -

1,483.426

$1,882,759

$ 14.983 23.817

187,628

226,428

13,694

1.571.376 -

1,585,070

$1,811,498

$ 16.672 26,934 18.592

62.198

12.655

1.608.957 -

1.621.612

$1,683,810

$ -

321,685

321.685

-

802,135 -

802,135

$1,123,820

$ -

(297.251)

(297.251)

-

1.616,466 -

1.616.466

$1,319,215

$ 9,844 2,690

839

13,373

-

924,409 -

924,409

$937,782

$ --

229,222

229.222

-

---

$229,222

50

CITY OF YOUNGSVILLE, LOUISL\NA General Fund

Budgetary Comparison Schedule - Revenues For the Year Ended June 30, 2013

With Comparative Actual Amounts for the Year Ended June 30, 2012

2013

Taxes: Ad valorem taxes Rededication from 1981 Sales Tax Franchise - electric Franchise - gas Franchise - cable

Licenses and permits: Occupational licenses Insurance occupational licenses Codes and permits

Budget Original

$ 625,000 -

375,000 50,000 50,000

1,100,000

12.000 150,000 300,000 462,000

Final

$ 646,432 438,940 333,296 36,500 46,948

1,502,116

13,567 170,571 547,100 731,238

Actual

$ 647,818 546,934 324,536 28,589 47,838

1,595,715

14,825 215,041 539,932 769,798


Positive (Negative)

$ 1,386 107,994

(8,760) (7,911)

890 93.599

1,258 44,470 (7,168) 38,560

2012 Actual

$ 587.501 -

334,321 36,901 48.014

1,006.737

13,125 178,983 314,343 506.451

Intergovernmental; State of Louisiana

Beer taxes 11.000 41,000

10,176 10,176

14,853

14,853

4,677

4,677 12,819 12,819

Fines and forfeits: Fines and court costs

Miscellaneous: Interest Sale of capital assets Other sources

Total revenues

75.000 264,275 263,329 (946) 104,014

100 5,000

17,500 22,600

$1,700,600

6,000 47,167 53,167

$2,560,972

34,500 10,623 45,123

$2,688,818

28,500 (36,544) (8,044)

$ 127,846

2,688 17,003 19,691

$1,649,712

51

CITY OF YOUNGSVILLE. LOUISL\NA General Fund

Budgetary Comparison Schedule - Expenditures For the Year Ended June 30.2013

With Comparative Actual Amounts for the Year Ended June 30.2012

2013

General government: Administrative -

Compensation - mayor and council Other salaries Payroll taxes and retirement Group insurance Utilities and telephone Mayor's expense Advertising Repairs and maintenance Inspection fees Dues and publications Professional fees General insurance Office supplies Computer expense Janitorial expense Convention expense Community relations Uniform expense Engineering Radio rent Beepers Contract services Annexation Mardi Gras expense Miscellaneous

Total administrative

Magistrate court -Professional fees Court supplies

Total magistrate court

Total general government

Budget Original

$ 103.560 117.500 35,000 35.000 10.000 15.000 13,000 15,000

300,000 2,500

50,000 50.000 30,500

-7,500 6,500

10.000 2.000

90,000 2,500 1,750

25,000 75,000 8,000

76.500 1,081.810

-' .

1.081.810

Final

$ 105.960 124.896 36,936 26,367 10.155 14.441 22,787 22,300

458.459 3,091

71,167 46,667 35,020 19,853 6,507 1,524 9.500 2,867

95,555 320

1,675 51,973 49,704 9.333 4,535

1,231.592

17.007 467

17,474

1,249,066

Actual

$ 105,960 88,417 27.483 28,335 10.428 15.607 22,711 18.739

446,095 2,318

84,582 40,320 39,789 14,368

1.318 1.283

27.212 3,171

121,265 240

1,632 77,056 46,602 6.975 3,898

1.235.804

7.830 -

7.830

1.243.634


Positive (Negative)

$ -36,479 9,453

(1.968) (273)

(1,166) 76

3,561 12.364

773 (13,415)

6,347 (4.769) 5.485 5.189

241 07.712)

(304) (25.710)

80 43

(25.083) 3.102 2.358

637 (4.212)

9.177 467

9.644

5.432

2012 Actual

$ 103.560 139,275 23.617 28,176 9,422 9,396

16,039 16,968

262.811 1.977

58.154 44,869 34,677 14,544 6.267 6.602

10.390 1.683

78.012 186

1,504 28,581 84,079 8,381 5.071

994.241

6.225 .

6.225

1.000,466

52 (continued)

CITY OF YOUNGSVILLE, LOUISIANA General Fund

Budgetary Comparison Schedule - Expenditures (Continued) For the Year Ended June 30,2013

With Comparative Actual Amounts for the Year Ended June 30,2012

2013

Public safety: Fire-

Appropriation to volunteer fire department (ad valorem taxes)

Insurance Professional fees Contract labor Miscellaneous

Total fire

Streets and drainage: Salaries Payroll taxes and retirement Group insurance General insurance Contract labor Legal fees Telephone and utilities Supplies, materials and repairs Office supplies Auto and truck expense Street lighting Engineering fees Uniforms Miscellaneous

Total streets and drainage

Capital outlay: General government -

Office equipment Fire - land Highways and streets -

Equipment

Total capital outlay

Debt service: Retirement of principal Interest and fiscal charges

Total debt service

Total expenditures

Budget Original

130,000 10,000 12,000

130,000 100

282.100

149,000 25,000 20,000 19,000 50.000

200 •

100,000 2,500

35,000 110.000 20,000

1,000 2,500

534,200

68.500 -

-

68.500

-3.500

3.500

$1.970.110

Final

168,500 8.667

11,000 134.267

500

322.934

117.447 14,887 23.333 18.000 47.493

500 13.372

123.133 1.600

36,780 93,233

1,628 367

8.067

499.840

5.730 -

-

5.730

58.667 1,693

60.360

$2,137,930

Actual

195.910 7.488

12,440 130.174

-

346.012

119.440 15.152 25.075 15.552 52.200

(540) 9.919

196,772 1.513

37.163 95.063

801 540

1,441

570,091

18,619 4.000

1.372

23,991

55.785 1,435

57.220

$2,240,948


Positive (Negative)

(27.410) 1.179

(1,440) 4.093

500

(23.078)

(1.993) (265)

(1.742) 2.448

(4,707) 1.040 3.453

(73.639) 87

(383) (1.830)

827 (173)

6,626

(70,251)

(12,889) (4.000)

(1.372)

(18.261)

2,882 258

3.140

$(103,018)

2012 Actaal

127.027 8.974

10.690 57,442

63

204.196

105,777 18,244 14.088 17.948 41.082

120 9.055

104.454 1,972

30,919 90,866 4.775

808 2,337

442,445

5.250 -

29.500

34.750

66.215 3,787

70,002

$1,751,859

53

CITY OF YOUNGSVILLE, LOUISL\NA 1981 Sales Tax Special Revenue Fund

Budgetaiy Comparison Schedule - Expenditures For the Year Ended June 30,2013


2013

General government-Sales tax collection fees Professional fees


Police -Salaries Payroll taxes and retirement Group insurance Repairs and maintenance Office supplies and expense Dues and subscriptions Telephone and utilities Insurance Auto expense Uniforms and supplies Marshall's expense Janitorial expense Act 474, 152, 562 and 977 expense Training Conference fees Community relations Professional fees Animal control Radio rent Miscellaneous

Total police

Capital outlay-Police autos Police equipment Building improvement - awning Police - parking lot


Total expenditures

Budget Original

$ 6,500 -

6,500

626,502 148,873 93,000 25,000 25.000 2,500

25,000 70,000 99,500 10,000

500 2,000

20,500 10,000 2.500

500 16,000 42,000 6.140

46,500

1,272,015

60,000 50.000

-20.000

130.000

$1,408,515

Final

$ 5.277 5.000

10.277

619.500 125.563 69.447 4.833

19.000 2,500

31.000 60,500

104,500 10,000

500 2,000

35,500 10,000 2.500

500 8.000

42.000 6,140 1,500

1,155.483

50,000 40,000

--

90,000

$1,255,760

Actual

$ 7.371 5,465

12.836

619.769 125.965 74.271 5,256

18,324 1,261

34,093 60,047

103.106 16.194

-600

72,957 1,073 2.282 -

15.421 56,301 4.260 1.417

1.212,597

50.746 40.578

--

91.324

$1,316,757


Positive (Negative)

$ (2.094) (465)

(2.559)

(269) (402)

(4,824) (423) 676

1.239 (3.093)

453 1.394

(6,194) 500

1.400 (37.457)

8,927 218 500

(7,421) (14,301)

1.880 83

(57,114)

(746) (578) . .

(1.324)

$ (60,997)

2012 Actual

$ 7.285 6.955

14,240

481,406 93,003 77,483 7.394

22,497 1,197

31,275 69,253 89,295 12,835

-1,650

12,179 815

3.160 400

4.436 46.119 4,560

74

959,031

43,418 17.936 5.360 »

66,714

$ 1.039.985

54

CITY OF YOUNGSVILLE. LOUISIANA Recreational Facilities Sales Tax Special Revenue Fund

Budgetary Comparison Schedule - Expenditures For the Year Ended June 30,2013

With Comparative Actual Amounta for the Year Ended June 30,2012

2013

General government-Sales tax collection fees Professional fees


Culture and recreation Salaries Payroll and retirement Group insurance Advertisisng Auto expense Computer expense Contributions Engineering Marketing Office supplies and expense Rent expense Repairs and maintenance Telephone and utilities Miscellaneous

Total culture and recreation

Capital outlay Recreational facility - equipment

Total expenditures

Budget Original

$ 6,500 7,855

14,355

-

-

-

-

-

-

-

-

30,000 -

-

-

--

30,000

230,000

$ 274,355

Final

$ 10.277 20,000 30.277

12.000 1,200

385 2,500 2,000 -

-

2,000 30,000 3,200 -

2,500 --

55,785

22.000

$108,062

Actual

$ 7,106 21,573 28,679

11,921 1,174

359 2,447 2,000

834 500

3,554 25,375 3,272

795 2,477

484 44

55.236

22.007

$105,922


Positive (Negative)

$ 3.171 (1.573) 1,598

79 26 26 53

-

(834)

(500) (1.554) 4.625

(72) (795)

23 (484) (44) 549

(7)

$ 2,140

2012 Actual

$ 898 -

898

-

-

-

-

-

-

-

-

-

-

-

-.

.

-

$ 898

55

CITY OF YOUNGSVILLE, LOUISL^NA Debt Service Fund

General Obligation Bonds

Schedule of Revenues, Expenditures, and Changes in Fund Balance -Budget (GAAP Basis) and Actual For the Year Ended June 30,2013


Budget

2013

Actual


Positive (Negative)

2012 Actual

Revenues (interest) $ 1,744 1,744 98

Expenditures: Debt service -

Retirement of principal Interest and fiscal charges Debt issuance costs

Total expenditures

Deficiency of revenues over expenditures

Other financing sources (uses): Issuance of debt Payment to relnnd debt Transfers from 1968 Sales Tax Fund Transfers from 1999 Sales Tax Fund Transfers from 1981 Sales Tax Fund Transfers from Recreational Sales Tax Fund Transfers from Capital Projects Fund Transfers from General Fund Transfers to Utility Fund

603,000

946,082

80,000

1,629,082

(1,629,082)

603,000

945,286

78,667

1,626.953

(1,625,209)

796

1,333

2,129

3,873

510.000

501,690

1,011.690

(1,011.592)

2,873,000

(2,216,000)

1,943,113

131,899

663,219

996,154

-

(905,544)

2.873,000

(2,216,000)

1,943,113

151,461

654,865

996,154

(8.567)

(905,544)

19.562

(8.354)

(8,567)

872,795 132,178 186,820 72,842

352,785 136,834

Total other financing sources




3,485,841 3,488,482

1,856.759 1,863,273

2,052.239 2,052,239

2,641

6,514

$3,908.998 $3,915,512 $ 6,514

1,754,254

742.662

1.309,577

$2.052,239

56

CITY OF YOUNGSVILLE. LOUISIANA Capital Projects Fund

Street Improvements and Construction Fund



2013

Revenues: Intergovernmental -

State of Louisiana: Department of Treasury

Miscellaneous -Donation - property for Savoy Road Interest Other sources

Total revenues

Expenditures: Current - streets -

Repairs and maintenance Capital outlay - streets -

Land - Savoy Road project LA Hwy 92 and Hwy 734 Overlay Chemin Metairie Parkway Phase 11 and 111 Bonin and Chemin Metairie Road Impr. Hwy 92 Realignment Telephone, Griffin and Chemin Agreeable Southlake, Minolta, N. Laravierre Fortune/Bonin Roundabout Downtown Improvements Miscellaneous street projects


Total expenditures




Budget

$ 6.142.286

62.204 7,414

14.365 6.226.269

-

62.204 1.259.818 6,200,160 1.489.078

---.

481.846 226.177

9.719,283

9,719,283

(3.493.014)

8,133,666

$ 4,640.652

Actual

$ 6,144,923

62.204 7.550

17.936 6.232.613

10,328

62.204 1.272.381 6.215.675 1.514,526

----

471,087 260,192

9,796,065

9,806,393

(3.573.780)

8,133.666

$ 4,559,886


Positive (Negative)

$ 2,637

-136

3,571 6.344

(10.328)

-(12.563) (15.515) (25.448)

----

10,759 (34,015) (76.782)

(87.110)

(80,766)

.

$ (80,766)

2012 Actual

$ 6,895,260

• 19.513 6,570

6.921,343

-

-67,495

3.045,571 276,434

2.127,539 826.220 431,509 264,543 108,423 145,884

7,293,618

7,293,618

(372,275)

8.505.941

$ 8,133,666

57

CITY OF YOUNGSVILLE, LOUISUVNA Capital Projects Fund

Recreational Facility Construction Fund


With Comparative Actual Amounts for the Year Ended June 30, 2012

2013

Revenues - interest:

Expenditures: Debt service - bond issuance costs Capital outlay - culture and recreation -

Recreational facility Multi-purpose community center

Total coital outlay

Total expenditures

Deficiency of revenues over expenditures

Other financing sources (uses): Issuance of debt Discount on issuance of debt Transfer from Facility Sales Tax Fund Transfer to Debt Service

Total other financing sources (uses)




Budget

$ 28,795

131,700

4,812,997 61,425

4,874,422

5,006,122

(4,977,327)

9,500,000 (101,748)

68,243 (996,154)

8.470,341

3,493.014

9,333.564

$12,826,578

AcUial

$ 30,203

121,991

4,848.333 61,425

4,909,758

5,031.749

(5,001,546)

9,500,000 (101,748)

68,243 (996,154)

8,470,341

3,468,795

9,333,564

$12,802,359


Positive (Negative)

1.408

9.709

(35.336) -

(35,336)

(25,627)

(24,219)

----

.

(24,219)

_

$ (24,219)

2012 Actual

$ 99

162.422

283.827 42.525

326.352

488,774

(488,675)

10,000,000 -

175,024 (352,785)

9,822,239

9,333,564

_

$9,333,564

58

CITY OF YOUNGSVILLE, LOUISIANA Enterprise Fund

Utility Fund

Schedule of Number of Utility Customers (Unaudited)

June 30. 2013 and 2012

Records maintained by the City indicated the following number of customers were being served during the months of June 30, 2013 and 2012:

Department 2013 2012

Water (metered) Sewerage Garbage

3,701 2,754 3.649

3,294 2,375 3,282

59

CITY OF YOUNGSVILLE. LOUISL\NA

Schedule of Insurance in Force (Unaudited)

June 30,2013

Description of Coverage

Policy Expiration Coverage

Date Amounts

Workmen's compensation: Employer's liability

Surety bonds: Cindy Broussard, Secretary Becky Gondron, City Clerk Position Bond

Automobile liability

Automobile comprehensive and collision coverage

Buildings, contents and machinery: Property coverage Wind and hail damage

Fire and terrorism

Law enforcement officer's liability

Public official's errors and omissions

General liability

Equipment

01/01/14 $ 500,000

03/15/15 08/16/13 06/27/14

05/01/14

05/01/14

09/06/13 09/06/13

09/06/13

05/01/14

05/01/14

05/01/14

05/01/14

10,000 15,000

602,662

500,000

1,000,000

3,016,575 1.500,000

500,000

500,000

500,000

500,000

584,836

60


Combined Schedule of Interest-Bearing Deposits June 30.2013

Term Maturity

Date Interest

Rate Amount

Sales Tax Funds: Iberia Bank -

Interest-bearing deposits Whitney Bank -

Certificate of deposit Certificate of deposit Certificate of deposit Certificate of deposit Certificate of deposit Certificate of deposit Certificate of deposit

Total sales tax funds

Street Improvements and Construction Capital Projects Fund: Gulf Coast Bank-

Certificate of deposit Total Street Improvements and Construction Fund

Recreation Facility Construction Capital Projects Fund: Iberia Bank -

Interest-bearing deposits

Debt Service Fund: Iberia Bank -

Interest-bearing deposits

Utility Fund: Whitney Bank -

Interest-bearing deposits Certificate of deposit Ortificate of deposit Certificate of deposit Certificate of deposit Certificate of deposit Certificate of deposit Certificate of deposit

Community First Bank -Certificate of deposit Certificate of deposit Certificate of deposit Certificate of deposit

Total Utility Fund

Total all fiinds

N/A

365 days 365 days 365 days 365 days 365 days 365 days 365 days

365 days

N/A

N/A

N/A 365 days 180 days 365 days 365 days 60 days

365 days 365 days

365 days 365 days 365 days 365 days

N/A

06/09/13 06/09/13 06/09/13 06/09/13 06/09/13 06/27/13 06/27/13

08/01/13

N/A

N/A

N/A 01/07/12 12/18/11 07/07/11 01/07/12 07/12/11 07/07/11 04/08/12

01/03/12 10/08/11 01/03/12 12/28/11

various

0.50% 0.50% 0.50% 0.50% 0.50% 0.15% 0.15%

0.65%

various

various

various 0.15% 0.10% 0.15% 0.15% 0.02% 0.15% 0.15%

0.10% 0.25% 0.10% 0.10%

$ 718.748

115.722 115,722 115.722 115.722 115,722 127,936 127,936

1.553.230

507.492 507,492

14.496.115

2.028,314

402.456 16.976 20.073 27.185 8,811 7,045 9,091

34,220

10,890 10,824 10,809 10.724

569.104

$19,154.255

61

CITY OF YOUNGSVILLE. LOUISIANA Enterprise Fund

Utility Fund

Statement of Net Position June 30.2013

With Comparative Amounts for June 30,2012


Cash Receivables:

Accounts receivable (net) Unbilled utility receivables Accrued interest receivable Due from other fiinds Prepaid items


Noncurrent assets: Restricted assets -

Cash Interest-bearing deposits, at cost

Unamortized bond issuance costs Capital assets:

Land and construction in progress Other capital assets, net of accumulated depreciation


LIABILITIES

Total assets

Current liabilities: Accounts payable Contracts payable Retainage payable Other liabilities Due to other funds Payable from restricted assets -Revenue bonds Accrued interest


Noncurrent liabilities: Customers' deposits Revenue bonds payable


Total liabilities

NET POSITION Invested in capital assets, net of related debt Restricted for debt service Restricted for water department operations Unrestricted

Total net position

2013 2012

$ 890.445 $ 618.808

255.743 104.516

57 421,662 19.128

1.691.551

1.339.838 569,104 53.457

1.168,277 13.671.226

16.801.902

18.493.453

183,817 157,090 37,255 9.902

1,307.128

278,000 10.448

1.983.640

229.987 4.411.043

4.641,030

6.624.670

10.996.854 487.139 194,086 190.704

$11,868,783

231.150 92.861

96 195.478 18.076

1.156.469

1.150.511 728,820 70.037

787.297 13.213.733

15.950.398

17,106.867

178.920 226.124 20.353 12.093

1.725.218

450.000 18,917

2.631.625

205.312 5.133.366

5.338.678

7,970.303

8,253.431 456.621 41.870

384,642

$ 9,136,564

62

CITY OF YOUNGSVILLE. LOUISL\NA Enterprise Fund

Utility Fund

Departmental Analysis of Revenues and Expenses For the Year Ended June 30.2013

With Comparative Amounts for the Year Ended June 30,2012

Operating revenues: Customer service charges Miscellaneous

Total operating revenues

Operating expenses: Salaries Payroll taxes and retirement Group insurance Sewer tests Water purchases Maintenance and repairs Contract labor/ maintenance fees Utilities and telephone Professional fees Engineer fees General insurance Office expense Supplies and parts Garbage collection fees Depreciation Miscellaneous


Operating income (loss)

Nonoperating revenues (expenses): Ad valorem taxes Interest income Interest expense Loss on sale of capital assets Paying agent fees Amortization - bond issuance costs Amortization - loss on bond refiinding

Total nonoperating revenues (expenses)

Income before contributions and operating transfers

Capital contributions

Transfers in


Net position, beginning

Net position, ending

Totals 2013

$ 2.305.698 596,311

2.902,009

359,115 45,234 43,289 3,125

342.823 616,274 47,352 90.316 62.597 16.779 88.675 4,918 61,751

623,743

557.353 19.042

2,982,386

(80.377)

227,612 1,001

(89.429) --

(16.580) (6.241)

116,363

35.986

223.603

2,472.630

2.732,219

9,136.564

$11,868,783

2012

$ 2,131.100 302.028

2,433.128

227.708 32,853 21,133

2.531 309.933 353.344 51.720 74,348 44.452 6.828

102.613

4.701 70.794

530.874

486,975 22.073

2.342.880

90.248

206.419 1.127

(120.643) (177) (139)

(6,024)

(6,241)

74.322

164.570

90.831

293.583

548.984

8.587.580

$ 9.136.564

63

Water 2013

$1,066,493 471,061

1,537,554

173.679 21.726 25,966 -

342.823 473,183 2.377 27,882 34,627 1,823

44.475 4.719

42,365 -

292.363 12.271

1.500.279

$ 37.275

2012

$ 994.918 218,540

1.213,458

110.423 17.699 9.862 -

309.933 291.544

120 21.148 29,117 4,470 51.485 4.581 53,884 -

288.166 14.540

1.206.972

$ 6.486

Sewerage

2013

$ 585.282 121.527

706.809

172.323 21.802 15.610 3,125 -

143,091 44,975 62.434 27.970 14.956 44,200

199 19,386 -

264.990 3.135

838.196

$(131,387)

2012

$537,643 73.488

611,131

89,708 11.555 9,862 2,531 -

61,800 51,600 53,200 15.335 2,358 51.127

120 7.535 -

198,810 3.768

559.309

$^51,822

Sanitation 2013

$ 653.923 3,723

657,646

13.113 1,706 1,713 -

----

-----

623,743 -

3,636

643,911

$ 13,735

2012

$ 598,540 9.999

608,539

27,577 3.599 1.409 -

-• -

--

----

9,375 530,874

-

3,765

576,599

$ 3U94q

64

CITY OF YOUNGSVILLE, LOUISIANA Enterprise Fund

Utility Fund

Statement of Cash Flows For the Year Ended June 30,2013


Cash flows from operating activities: Receipts from customers Payments to suppliers Payments to employees Other receipts


Cash flows from noncapital financing activities: Cash received (paid) to/from other fiinds Transfers from other fiinds

Net cash provided by noncapital financing activities

Cash flows from capital and related financing activities: Principal paid on revenue bonds payable Interest and fiscal charges paid on revenue bonds payable Proceeds from revenue bonds payable Net increase in customer deposits payable Acquisition of property, plant and equipment Proceeds from ad valorem taxes Proceeds from grants

Net cash used by capital and related financing activities

Cash flows from investing activities: Purchase of interest-bearing deposits Maturities of interest-bearing deposits Interest on investmenta

Net cash provided by investing activities

Net increase in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

2013 2012

$ 2,269,450 (2,019,030) (404,349)

596,311

442,382

(644,274) 2,472,630

1,828,356

(1,565,000) (97.898) 664,436 24,675

(1,447,959) 227,612 223,603

(1,970.531)

(166,648) 166,275

1,041

668

300,875

1.946.235

$ 2,247,110

$ 1,981,727

(1.449,518) (234,922)

185,272

482,559

779,087 293,583

1,072,670

(223.000) (104.929) 3,000,035

13,256 (4,304,813)

197,423 90,831

(1.331,197)

(166,275) 165,607

1,079

411

224,443

1,721,792

$ 1,946.235

^5 (continued)

CITY OF YOUNGSVILLE, LOUISL^NA Enterprise Fund

Utility Fund

Statement of Cash Flows (Continued) For the Year Ended June 30,2013


2013 2012 Reconciliation of operating income (loss) to net cash provided by

operating activities: Operating income (loss)

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

Depreciation Changes in current assets and liabilities:

(Increase) decrease in accounts receivable Increase in unbilled utility receivable Increase in prepaid items Increase in accounts payable Increase (decrease) in other liabilities


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

Cash and cash equivalents, beginning of period -Cash - unrestricted Interest-bearing deposits - unrestricted Cash - restricted Interest-bearing deposits - restricted Less: Interest-bearing deposits with a maturity over three months

Total cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period -Cash - unrestricted Cash - restricted Interest-bearing deposits - restricted Less: Interest-bearing deposita with a maturity over three months

Total cash and cash equivalents, end of period

Net increase

$ (80.377) $ 90.248

557,353 486,975

(24,593)

(11,655)

(1.052)

4,897

(2,191)

6,942

(6,540)

(7,606)

20,156

4,173

$ 442.382 $ 594.348

$ 618.808 $ 223,500

1,150,511 728,820

(166,275)

2.331.864

890.445 1.339,838

569,104 (166.648)

2.632.739

1.121.428 542.471

(165.607)

1,721,792

618.808 1,150,511

728.820 (166,275)

2,331,864

$ 300,875 $ 610,072

66

INTERNAL CONTROL,

COMPLLMVCE,AND

OTHER MATTERS

67

C Burton Kolder. CPA* Russdl F. Champaene, CPA* Victor R. Slaven. CPA* Gerald A. Thibodeaux. Jr., CPA* Robert S. Carter. CPA* Arthur R. Mborn. CPA* Penny AngeDe Souogins, CPA Christine C. Douoet, CPA

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

Wanda F. Arcement, CPA,CVA AUen J. LBBiy. CPA Albert R. Leoer. CPA.PPS.CSA* htarshaBW. Guidry, CPA Stophan R Moore, Jr., CPA.PFS.CFP*.ChFC** James R. Roy, CPA Robert J. Metz. CPA Alan M Taytor. CPA Kelly M. Doucet, CPA Cheryl L Bartley. CPA Mandy 8. Self, CPA Paul L Deicambre, Jr., CPA Kristin B. Dauzat. CPA Matthew E. MargaoTto. CPA Jane R Hebert, CPA Bryan K. Joubert, CPA Stephen J. Anderson, CPA W. Jeffrey Lowry. CPA Brad E. KoMer, CPA. JD Casey L. A ^ d ^ ^ CPA

Retired: Conrad 0. Chapman, CPA* 2006

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

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

OFFICES

1B3 South Beadto Rd. Lafayette. LA 70508 Phone (337) 232-4141 Fax (337) 232-8660

^n£e9\BiW8eSL Breaux Brtdge. LA 70517 Phone (337) 332-4020 Fax (337) 332-2867

1234 David Dr. Ste 203 Morgan City, LA 70380 Phone (985) 384-2020 Fax (885) 384-3020

408 West Cotton Street ViUe Platte. U 70566 Phone (337) 363-2792 Fax (337) 363-3049

332 West Sixth Avenue Oberiin, LA 70655 Phone {337)63*4737 Fax (337) 63»4S68

4S0 East litein Street New Iberia. LA 70560

Phone (337) 367-9204 Pax (337) 367-8208

200 South Man Street AbbeviDe, LA 70510

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

1013 Main Street FranUin. U 70538

Phone (337) 8264)272 Fax(337) 82641290

133E8StWadcfilSt MarksvlDo LA 71351

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

1428 Metro Drive Alexandria. LA 71301

Phorw (318)442-4421 Pax (318) 442-9833

WEBSITE WWW.KCSRCPASCOM

* A PratMilORtl AcGOunSng Corporstton ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The Honorable Wilson Viator, Mayor and Members of the Board of Aldermen

City of Youngsville, Louisiana

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to fmancial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the fmancial statements of the governmental activities, the business-type activities, each major fimd , and the aggregate remaining ftmd information of the City of Youngsville, Louisiana (the City) as of and for the year ended June 30, 2013, and the related notes to the fmancial statements, which collectively comprise the City's basic fmancial statements and have issued our report thereon dated December 23,2013.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the fmancial statements , but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over fmancial reporting that might be significant deficiencies or material weaknesses, and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying summary schedule of current and prior year audit findings and management's corrective action plan, we identified certain deficiencies in internal control over fmancial reporting that we consider to be material weaknesses.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying summaiy schedule of current and prior year audit findings and management's corrective action plan as items 13-1(IC) ,13-2(IC). and 13-3(IC) to be material weaknesses. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

68 Member of: AMERICAN INSinVTE OF CERTIFIED PUBLIC ACCOUNTA^^TS

Member of: SOCIETY OF LOUISIANA


http://WWW.KCSRCPASCOM

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

We also noted certain matters concerning financial operations that we have reported to the management of the City in a separate tetter dated December 23,2013.

The City of Youngsville, Louisiana's Response to Findings

The City's response to the findings identified in our audit is described in the accompanying summary schedule of current and prior year audit findings and management's corrective action plan. The City's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

Purpose of this Report

This report is intended solely to describe the scope of our testing of internal control and compliance and the results of that testing , and not to provide an opinion on the effectiveness of the entity's internal control and compliance. This report is an integral part of an audit performed in accordance with Government Auditing Statements in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Under Louisiana Revised Statute 24:513, this report is distributed by the Louisiana Legislative Auditor as a public document.

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

Lafayette, Louisiana December 23,2013

Member of: Member of: C S ^ ' R E O P U B S ^ I C C O U M T A N T S fiO SOCIETY OF LOUISIANA UtRTIFIED PUBLIC ACCOUNTANTS O V CERTIFIED PUBLIC ACCOUNTANTS


Summary Schedule of Current and Prior Year Audit Findings and Corrective Action Plan Year Ended June 30,2013

Fiscal Year Finding Initially

Ref. No. Occurred Description of finding

Corrective Action Taken

CURRENT YEAR (6/30/13) -

Internal Control: 13-I(IC) Due to the small number of employees, the City of

Youngsville did not have adequate segregation of functions within the accounting system.

13-2(IC) 06/30/08

13-3(IC) 6/30/2013

Management Letter: I3-4(ML) 06/30/12

The City does not have a staff person who has the qualifications and training to apply generally accepted accounting principles (GAAP) in recording the entity's financial transactions or preparing its financial statements, including the related notes.

The City does not have adequate controls over recordation of transactions and monthly reconciliations of account balances. Specifically, in the areas of utility accounts receivable and customer meter deposits, monthly reconciliations to subsidiary ledgers are not being properly reconciled. Variances must be investigated to determine the source of the differences.

At 6/30/13, it was noted that the City maintains approximately $6,900,000 of non-interest bearing cash accounts. The City should invest any excess cash balances in order to maximize interest earnings.

No

No

No

Corrective Action Planned

N/A No response is considered necessary.

The City has evaluated the cost vs. benefit of establishing internal controls over the preparation of financial statements in accordance with GAAP, and determined that it is in the best interests of the govemment to outsource this task to its independent auditors, and to review the draft financial statements and notes prior to approving them and accepting responsibility for their contents and presentation.

Management will implement adequate controls over recordation of transactions and monthly reconciliations of account balances. All variances will be investigated to determine the source of the differences.

The City will consider investing excess cash balances.

Name of Contact Person

Becky L. Gondron, City Clerk

Becky L. Gondron. City Clerk

Anticipated Completion

Date

N/A

N/A



Immediately

Immediately

(continued)

70


Summary Schedule of Current and Prior Year Audit Findings and Corrective Action Plan (Continued)

Year Ended June 30, 2013

Ref. No.


Occurred CURRENT YEAR (6/30/13)( continued)

Management Letter (continued):

Description of finding


13-5 (ML) 06/30/13

13-6(ML) 06/30/12

13-7(ML) 06/30/13

The City has several bank accounts that are not being properiy reconciled. Review of bank reconciliations and bank statements indicated that deposits were shown as cleared in the accounting system, but did not clear the bank. Outstanding checks and deposits should remain on the bank reconciliations until shown as cleared on bank statements. The lack of controls in this area leave opportunity for misappropriation if not corrected.

Due to the increasing size of the City's operations, it appears that the current software being utilized may not be sufficient to effectively and efficiently record transactions in an accurate manner to provide financial information to management ofT/cials.

The City's sewer department experienced an operating loss of $131,387 . Consideration should be given to increasing rates and/or decreasing expenses in this departments in order to generate a profit.

No

No

No

Corrective Action Planned

Management will review cash reconciIiation procedures with necessary parties and verify that reconciliations are properly prepared in the flitiu'e.

Management will consider enhancing the current software programs or purchasing software which wilt process information in an efficient and accurate manner. Additional accounting consultations will also be evaluated in order to improve the financial reporting system.

Management will evaluate the current sewer charges and will closely monitor the operating expenses in this department and make necessary changes.






Date

Immediately

Immediately

Immediately

(continued)

71

CITY OF YOUNGSVILLE. LOUISL^NA


Year Ended June 30. 2013


Ref No. Occurred Description of finding


PRIOR YEAR (6/30/12)-

Internal Control: 12-1(IC) Due to the small number of employees, the City of

Youngsville did not have adequate segregation of functions within the accounting system.

12-2(IC) 06/30/08 The City does not have a staff person who has the qualifications and training to apply generally accepted accounting principles (GAAP) in recording the entity's financial transactions or preparing its financial statements, including the related notes.

Compliance: 12-3(C) 6/30/2012 The City of Youngsville failed to comply with

Louisiana Revised Statute (R.S.) 42.1113.A.(l)(a) which states "No public servant shall bid on or enter into any contract, subcontract, or other transaction that is under the supervision or jurisdiction of the agency of such public servant."

Corrective Action Plarmed

N/A No response is considered necessary.

No The City has evaluated the cost vs. benefit of establishing internal controls over the preparation of financial statements in accordance with GAAP, and determined that it is in the best interests of the goverrunent to outsource this task to its independent auditors, and to review the draft financial statements and notes prior to approving them and accepting responsibility for their contents and presentation.

No Management has been informed of the situation and has agreed to comply with this statute in the future.

Anticipated Name of Completion

Contact Person Date



Becky L. Gondron. City Clerk

N/A

N/A

Immediately

Management Letter: 12-4(ML) 06/30/05 City personnel should properly maintain a monthly

customer meter deposit listing which should be agreed to the general ledger on a monthly basis.

No

72

A computer-generated meter deposit listing Becky L. will be printed on a monthly basis and Gondron. reconciled to the general ledger account City Clerk balance.

Immediately

(continued)



Year Ended June 30,2013


Ref No. Occurred Description of finding


PRIOR YEAR (6/30/12)( continued) -

Management Letter (continued): 12-5(ML) 06/30/05 City persormel should agree all balance sheet

accoLmts in each fund to supporting documentation (schedules, subsidiary ledgers, etc.) on a monthly basis. This procedure will allow for correct recordation and reporting of revenues and expenditures/expenses and will ensure accurate monthly financial statements.

12-6(ML) 06/30/12 At 6/30/12, it was noted that the City mainUins approximately $6,000,000 of non-interest bearing cash accounts. The City should invest any excess cash balances in order to maximize interest earnings.

12-7(ML) 06/30/12 During the performance of the armual audit, niunerous adjusting ' journal entries were required to properly record accounts receivable and/or to correct errors made by the client in posting collections. Accoimts receivable should be reconciled to the general ledger on a monthly basis.

12-8(ML) 06/30/12 Due to the increasing size of the City's operations, it appears that the current software being utilized may not be sufficient to effectively and efficiently record transactions in an accurate manner to provide financial information to management officials.

No

No

No

No

Corrective Action Plarmed

Monthly reconciliations of all balance sheet accounts will be performed by appropriate personnel and balances will be agreed to the general ledger.

The City vnW consider investing excess cash balances.



Management will consider enhancing the current software programs or purchasing software which will process information in an efficient and accurate manner. Additional accounting consultations will also be evaluated in order to improve the financial reporting system.


Management will prepare accounts receivable Becky L. reconciliations and compare them to the general Gondron, ledger balance to ensure that all collections are City Clerk properly recorded.



Date

Immediately

Immediately

Immediately

Immediately

73

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