sabine parish fire protection district, north sabine fire protection district zwolle, louisiana...

NORTH SABINE FIRE PROTECTION DISTRICTZWOLLE, LOUISIANA

FINANCIAL STATEMENTSFOR THE YEAR ENDED

DECEMBER 31, 2005

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

Release Date

NORTH SABINE FIRE PROTECTION DISTRICTZWOLLE, LOUISIANATABLE OF CONTENTS

DECEMBER 31,2005

Exhibit Schedule PageAffidavit - - 1

Independent Auditors' Report - - 2

Management's Discussion and Analysis - - 3

Statement of Net Assets A - 8

Statement of Activities B - 9

Balance Sheet - Governmental Funds C - 10

Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets D - 11

Statement of Revenues, Expenditures, and Changes in Fund Balances- Governmental Funds E - 12

Reconciliation of the Statement of Revenues, Expenditures, and Changes in FundBalances of Governmental Funds to the Statement of Activities F - 13

Notes to the Financial Statements - - 14

Required Supplementary Information - - 19

Statement of Revenues, Expenditures, and Changes in Fund Balances of GovernmentalFunds - Budget (GAAP Basis) and Actual - 1 20

Other Supplementary Information - - 21

Schedule of Compensation Paid Board Members - 2 22

Schedule of Findings and Questioned Costs - 3 23

Report on Compliance and on Internal Control Over Financial Reporting Basedon an Audit of Financial Statements Performed in Accordance with GovernmentAuditing Standards - - 24

Summary Schedule of Prior Audit Findings - 4 25

Corrective Action Plan for Current Year Audit Findings - 5 26

Management Letter - 27

NORTH SABINE FIRE PROTECTION DISTRICTZWOLLE. LOUISIANA

FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 3 I. 2005

Legislative AuditorP. O. Box 94397Baton Rouge, LA 70804-9397

AFFIDAVIT

Personally came and appeared before the undersigned authority, Gary Rivers, President of the North Sabine FireProtection District, who, duly sworn, deposes and says, that the financial statements herewith given presents fairly thefinancial position of the North Sabine Fire Protection District, at December 31, 2005 and the results of operations forthe year then ended in accordance with generally accepted accounting principles as prescribed by the GovernmentalAccounting Standards Board. /

Sworn to and subscribed before me, this 12th day of May , 2006.

HINES, JACKSON & HINES, L.L.C.CERTIFIED PUBLIC ACCOUNTANTS

FRANK S. HINES, CPA P.O. BOX 2188 - 133 EAST FIFTH STREET A. NEILL JACKSON, JR., CPALEWIS C. HINES. CPA NATCHITOCHES, LA 71457 1926-1999E. MERLIN SQUYRES, CPA _________JAY H. SHEFFIELD, CPA Telephone (318) 352-6458

FAX (318) [email protected]

INDEPENDENT AUDITORS' REPORT

North Sabine Fire Protection DistrictP.O. Box 81Zwolle, Louisiana 71486

We have audited the accompanying basic financial statements of the North Sabine Fire Protection District, Zwolle, Louisiana, acomponent unit of the Sabine Parish Police Jury, as of and for the year ended December 31,2005, as listed in the table of contents.These financial statements are the responsibility of management of the North Sabine Fire Protection District. Our responsibility isto express an opinion on these financial statements based on our audit. t

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standardsapplicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basisfor our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the NorthSabine Fire Protection District as of December 31,2005, and the results of its operations for the year then ended in conformity withaccounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated May 12, 2006, on our consideration of theNorth Sabine Fire Protection District's internal control over financial reporting and our tests of its compliance with certain provisionsof laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with GovernmentAuditing Standards and should be read in conjunction with this report in considering the results of our audit.

The Management's Discussion and Analysis and the budgetary information on pages 3 through 7 and 20, respectively, are not arequired part of the basic financial statements but are supplementary information required by the Governmental Accounting StandardsBoard. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methodsof measurement and presentation of the supplementary information. However, we did not audit the information and express noopinion on it.

Our audit was made for the purpose of forming an opinion on the basic financial statements of the North Sabine Fire ProtectionDistrict taken as a whole. The accompanying supplemental schedules listed in the table of contents are presented for purposes ofadditional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relationto the basic financial statements taken as a whole.

The financial information for the year ended December 31, 2004, which is included for comparative purposes was taken from thefinancial report for that year in which we expressed an unqualified opinion dated April 5,2005, on the basic financial statements ofthe North Sabine Fire Protection District.

Hines, Jackson & HinesNatchitoches, LouisianaMay 12,2006

-MEMBERS-American Institute of Certified Public Accountants Society of Louisiana Certified Public Accountants


MANAGEMENT'S DISCUSSION AND ANALYSISDECEMBER31.2Q05

The Management's Discussion and Analysis of the North Sabine Fire Protection District's financial performance presentsa narrative overview and analysis of North Sabine Fire Protection District's financial activities for the year endedDecember 31, 2005. This document focuses on the current year's activities, resulting changes, and currently knownfacts. Please read this document in conjunction with the additional information contained in the North Sabine FireProtection District's financial statements, which begin on page 8.

FINANCIAL HIGHLIGHTS

1) The North Sabine Fire Protection District had cash of $171,808 at December 31, 2005 which represents adecrease of $197,740 from prior year end.

2) The North Sabine Fire Protection District had accounts receivable of $274,221 at December 31, 2005 whichrepresents an increase of $67,460 from prior year end.

3) The North Sabine Fire Protection District had accounts payable and accruals of $20,709 at December 31,2005which represents an increase of $5,038 from prior year end.

4) The North Sabine Fire Protection District had total revenues of $377,457 for the year ended December 31,2005which represents a decrease of $386,051 from prior year.

5) The North Sabine Fire Protection District had tax revenues of $259,178 for the year ended December 31,2005which represents an increase of $31,959 from prior year.

6) The North Sabine Fire Protection District had personal services expenses of $28,356 for the year endedDecember 31, 2005 which represents an increase of $4,651 from prior year.

7) The North Sabine Fire Protection District had operating services expenses of $128,629 for the year endedDecember 31, 2005 which represents an increase of $ 14,454 from prior year.

8) The North Sabine Fire Protection District had supplies expenses of $4,118 for the year ended December 31,2005 which represents a decrease of $7,472 from prior year.

9) The North Sabine Fire Protection District had capital asset purchases of $313,188 for the year ended December31, 2005 which represents a decrease of $117,646 from prior year.

OVERVIEW OF THE FINANCIAL STATEMENTS

The following graphic illustrates the minimum requirements for the North Sabine Fire Protection District as establishedby Governmental Accounting Standards Board Statement 34, Basic Financial Statements-and Management's Discussionand Analvsis-for State and Local Governments.


MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)DECEMBER 31.2005

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Management Discussion and Analysis

Basic Financial Statements

Required Supplementary Information(Other than MD&A)

These financial statements consist of three sections - Management's Discussion and Analysis (this section), the basicfinancial statements (including the notes to the financial statements), and required supplementary information.

Basic Financial Statements

This annual report consist of a series of financial statements. The Statement of Net Assets and the Statement ofActivities (on pages 8 and 9) provide information about the activities of the North Sabine Fire Protection District as awhole and present a longer-term view of the District's finances. These statements include all assets and liabilities usingthe accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of thecurrent year's revenues and expenses are taken into account regardless of when cash is received or paid.

The Statement of Net Assets and the Statement of Activities report the District's net assets and changes in them. Youcan think of the District's net assets, the difference between assets and liabilities, as one way to measure the District'sfinancial health, or financial position. Over time, increases or decreases in the District's net assets are one indicator ofwhether its financial health is improving or deteriorating.

Fund financial statements start on page 10. All of the District's basic services are reported in governmental funds, whichfocus on how money flows into and out of those funds and the balances left at year end that are available for spending.These funds are reported using an accounting method called modified accrual accounting, which measures cash and allother financial assets that can readily be converted to cash. The governmental fund statements provide a detailed shortterm view of the District's general government operations and the basic services it provides. Governmental fundinformation helps you determine whether there are more or fewer financial resources that can be spent in the near futureto finance the District's activities as well as what remains for future spending.

NORTH SAB1NE FIRE PROTECTION DISTRICTZWOLLE. LOUISIANA

MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)DECEMBER31.2005

FINANCIAL ANALYSIS OF THE ENTITY

Statement of Net AssetsAs of Year End

2005 2004Current and other assets $ 480,277 $ 576,309Capital assets, net 993,663 881.988

Total Assets $ 1.473.940 S 1.458.297

Other liabilities $ 20,709 $ 15,671Compensated Absences payable 0 0

Total Liabilities 20,709 15,671

Net assetsInvestment in capital assets, net of related debt 993,663 881,988Unrestricted 459,568 560.638

Total Net Assets 1,453.231 1,442.626

Total Liabilities and Net Assets S 1,473.940 S 1.458,297

Net assets of the North Sabine Fire Protection District's increased by $10,605 or 0.74% from the previous fiscal year.The increase is the result of program and general revenues exceeding operating expenses during the fiscal year ended2005 (See table below).

Statement of ActivitiesFor the Year Ended

2005 2004General government

Expenses $ (366,852) S (325,594)Program revenues

Capital grants and contributions 57.883 477.380

Subtotal (308,969) 151,786

General revenues 319.574 286,128

Change in net assets S 10.605 $ 437,914

The North Sabine Fire Protection District's total revenues decreased by $386,051 or 50.56% from the previous year.The total cost of all programs and services increased by $41,258 or 12.67% from the previous year.


MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)DECEMBER 31, 2005

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

At the end of 2005, the North Sabine Fire Protection District had $993,663, net of depreciation, invested in a broadrange of capital assets (See table below). This amount represents a net increase (including additions and deductions)of $111,675 or 12.66% from the previous year.

Capital Assets at Year End(Net of Depreciation)

2005 2004Land $ 30,115 $ 30,115Construction in progress 0 0Buildings and building improvements 231,674 187,610Automobiles 255,013 295,467Machinery and equipment 476,861 368.796

Total $ 993.663 S 881.988

This year's major additions included:

Building and building improvements $ 76,247Automobiles $ 32,000Machinery and equipment $ 204,941

This years's major retirements included:

None.

Debt

The North Sabine Fire Protection District had $0 in compensated absences payable outstanding at year end comparedto SO at the previous year end, no change, as shown in the table below.

Outstanding Debt at Year End

2005 2004

Compensated absences payable J£ 0

Totals $ 0

New debt during the year included:

None.

NORTH SAB1NE FIRE PROTECTION DISTRICTZWOLLE, LOUISIANA

MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)DECEMBER 31.2005

VARIATIONS BETWEEN ORIGINAL AND FINAL BUDGETS

Actual revenues were $61,543 less than budgeted amounts due to intergovernmental revenues being less than expected.

Actual expenditures were $43,753 less than budgeted amounts due to capital outlay expenditures being less thanexpected.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET

The North Sabine Fire Protection District's elected officials considered the following factors and indicators when settingnext year's budget, rates and fees. These factors and indicators include:

1) Taxes2) State revenue sharing3) Intergovernmental revenues (state and local grants)4) Miscellaneous revenues

The North Sabine Fire Protection District does not expect any significant changes in next year's results as compared tothe current year.

CONTACTING THE NORTH SABINE FIRE PROTECTION DISTRICT'S MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a generaloverview of the North Sabine Fire Protection District's finances and to show the North Sabine Fire Protection District'saccountability for the money it receives. If you have questions about this report or need additional financial information,contact Gary Rivers, President, Post Office Box 81, Zwolle, Louisiana 71486.

NORTH SABINE FIRE PROTECTION DISTRICTZWQLLE, LOUISIANA

STATEMENT OF NET ASSETSDECEMBER 31. 2005 AND 2004

EXHIBIT A

2005 2004ASSETS

Current AssetsCashAccounts receivablePrepaid expenses

Total Current Assets

Noncurrent AssetsCapital assets, net

Total Assets

171,808 $274,22134,248 _

480,277

993,663

369,548206,761

0576,309

881.988

1,473,940 $ 1,458.297

LIABILITIES AND NET ASSETSLIABILITIES

Current LiabilitiesAccounts payable and accruals

Total Current Liabilities

Noncurrent LiabilitiesCompensated absences payable

Total Liabilities

NET ASSETSInvestment in capital assets, net of related debtUnrestricted

Total Net Assets

Total Liabilities and Net Assets

$ 20.709 $20,709

0

20,709

993,663459,568

1,453,231

$ 1.473.940 $

15,67115,671

0

15,671

.881,988560,638

1,442,626

1,458.297

The accompanying notes are an integral part of this statement.

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BALANCE SHEETGOVERNMENTAL FUNDS

DECEMBER 31. 2005 AND 2004

EXHIBIT C

ASSETSCashAccounts receivablePrepaid expenses

Total Assets

2005

171,808 $274,221

34.248

480,277 $

2004

369,548206,761

Q

576309

LIABILITIES AND FUND BALANCESLIABILITIES

Accounts payable and accrualsTotal Liabilities

FUND BALANCESUnreserved

Total Fund Balances

Total Liabilities and Fund Balances

20.709 $20,709

459.568

459.568

480.277 $

15.67115,671

560.638

560.638

576.309

The accompanying notes are an integral part of this statement. 10

EXHIBIT DNORTH SABINE FIRE PROTECTION DISTRICT

ZWOLLE, LOUISIANARECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET ASSETSDECEMBER 31. 2005

Total Fund Balances for Governmental Funds (Exhibit C) $ 459,568

Total Net Assets reported for governmental activities in the statement of net assetsis different because:

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

Land $ 30,115Buildings and building improvements, net of $204,291 in

accumulated depreciation 231,674Automobiles, net of $890,557 in accumulated depreciation 255,013Machinery and equipment, net of $200,204 in

accumulated depreciation S 476.861Total Capital Assets 993,663

Long-term liabilities, including compensated absences payable, are not dueand payable in the current period and therefore are not reported in the fundliabilities. 0

Total Net Assets of Governmental Activities (Exhibit A) $ 1.453.231


EXHIBIT ENORTH SABINE FIRE PROTECTION DISTRICT

ZWOLLE. LOUISIANASTATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDSFOR THE YEARS ENDED DECEMBER 31. 2005 AND 2004

2005 2004REVENUESTaxes $ 259,178 $ 227,219State revenue sharing 29,425 29,062Intergovernmental revenues 57,883 477,380Interest income . 3,029 2,417Miscellaneous 27,942 27.430

Total Revenues 377,457 763,508

EXPENDITURESGeneral government

Personal services 28,356 23,705Travel 0 0Operating services 128,629 114,175Supplies 4,118 11,590Professional services 4,236 3,381

Capital outlay 313,188 430,834Total Expenditures 478,527 583,685

Excess/(Deficiency) Of Revenues Over Expenditures (101,070) 179,823

Fund Balance, Beginning of year 560,638 380,815

Fund Balance, End of year $ 459,568 $ 560,638


EXHIBIT FNORTH SABINE FIRE PROTECTION DISTRICT

ZWOLLE. LOUISIANARECONCILIATION OF THE STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN

FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIESFOR THE YEAR ENDED DECEMBER 31. 2005

Net Change in Fund Balances-Total Governmental Funds (Exhibit E) $ (101,070)

The change in Net Assets reported for governmental activities in the statement of activities isdifferent because:

Governmental funds report capital outlays as expenditures. However, in the statement ofactivities the cost of those assets is allocated over their estimated useful lives and reportedas depreciation expense. This is the amount by which capital outlay ($313,188) exceedsdepreciation ($201,513) in the current period. 111,675

Some expense reported in the statement of activities, such as compensated absences, do notrequire the use of current financial resources and therefore are not reported as expendituresin governmental funds. 0

Change in Net Assets of Governmental Activities (Exhibit B) $ 10,605


NORTH SABINE FIRE PROTECTION DISTRICT2WOLLE. LOUISIANA

NOTES TO THE FINANCIAL STATEMENTSDECEMBER 31. 2005

The North Sabine Fire Protection District was created by the Sabine Parish Police Jury, as authorized by LouisianaRevised Statute 40:1492, for the purpose of providing fire protection within the District. The District is governed bya board of six commissioners appointed by the Police Jury, Town of Zwolle, Village of Converse, Village of PleasantHill and Village of Noble.

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Accounting

In April of 1984, the Financial Accounting Foundation established the Governmental Accounting Standards Board(GASB) to promulgate generally accepted accounting principles and reporting standards with respect to activities andtransactions of state and local governmental entities. The GASB has issued a Codification of Governmental Accountingand Financial Reporting Standards (GASB Codification). This Codification and subsequent GASB pronouncements arerecognized as generally accepted accounting principles for state and local governments. The accompanying financialstatements have been prepared in accordance with such principles.

The accompanying financial statements of the North Sabine Fire Protection District present information only as to thetransactions of the programs of the North Sabine Fire Protection District as authorized by Louisiana statutes andadministrative regulations.

Basis of accounting refers to when revenues and expenses are recognized and reported in the financial statements. Basisof accounting relates to the timing of the measurements made, regardless of the measurement focus applied.

The accounts of the North Sabine Fire Protection District are maintained in accordance with applicable statutoryprovisions:

Revenue RecoRnitionRevenues are recognized using the full accrual basis of accounting; therefore, revenues are recognized in theaccounting period in which they are earned and become measurable.

Expense RecognitionExpenses are recognized on the accrual basis; therefore, expenses, including salaries, are recognized in theperiod incurred, if measurable.

B. Budgetary Accounting

Formal budgetary accounting is employed as a management control. The North Sabine Fire Protection District preparesand adopts a budget each year in accordance with Louisiana Revised Statutes. The operating budget is prepared basedon prior year's revenues and expenditures and the estimated increase therein for the current year, using the full accrualbasis of accounting. The District amends its budget when projected revenues are expected to be less than budgetedrevenues by five percent or more and/or projected expenditures are expected to be more than budgeted amounts by fivepercent or more. All budget appropriations lapse at year end.

14


NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)DECEMBER 31.2005

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. Cash and Cash Equivalents

For the purpose of the Statement of Cash Flows and consistent with GASB Statement 9, the North Sabine Fire ProtectionDistrict defines cash and cash equivalents as follows:

Cash - includes not only currency on hand but also demand deposits with banks or other financial institutions and otherkinds of accounts that have the general characteristics of demand deposits in that the customer may deposit additionalfunds at any time and also effectively may withdraw funds at any time without prior notice or penalty.

Cash equivalents - includes all short term, highly liquid investments that are readily convertible to known amounts ofcash and are so near their maturity that they present insignificant risk of changes in value because of interest rates.Generally, only investments which, at the day of purchase, have a maturity date no longer than three months qualifyunder this definition.

D. Receivables

All receivables are reported at their gross value and, where applicable, are reduced by the estimated portion that isexpected to be uncollectible.

E. Bad Debts

Uncollectible accounts receivable are recognized as bad debts through the establishment of an allowance account at thetime information becomes available which would indicate the uncollectibility of the particular receivable. At December31, 2005, $0 were considered to be uncollectible.

F. Capital Assets

Capital assets are carried at historical costs. Depreciation of all exhaustible capital assets used by the North Sabine FireProtection District are charged as an expense against operations in the Statement of Activities. Capital assets net ofaccumulated depreciation are reported on the Statement of Net Assets. Depreciation is computed using the straight linemethod over the estimated useful life of the assets, generally 10 to 40 years for buildings and building improvementsand 5 to 10 years for moveable property. Expenditures for maintenance, repairs and minor renewals are charged toearnings as incurred. Major expenditures for renewals and betterments are capitalized.

G. Compensated Absences

The North Sabine Fire Protection District does not have full time employees; therefore, no liability for compensatedabsences has been recorded in the accompanying financial statements.

H. Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires managementto make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingentassets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses duringthe reporting period. Actual results could differ from those estimates.

15

NORTH SAB1NE FIRE PROTECTION DISTRICT2WOLLE. LOUISIANA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)DECEMBER 31. 2005

NOTE 2 DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS

A. Deposits with Financial Institutions

For reporting purposes, deposits with financial institutions including savings, demand deposits, time deposits, andcertificates of deposit. Under state law the North Sabine Fire Protection District may deposit funds within a fiscal agentbank selected and designated by the Interim Emergency Board. Further the Fund may invest in time certificates ofdeposit of state banks organized under the laws of Louisiana, national banks having their principal office in the state ofLouisiana, in savings accounts or shares of savings and loan associations and savings banks and in share accounts andshare certificate accounts of federally or state chartered credit unions.

Deposits in bank accounts are stated at cost, which approximates market. Under state law, these deposits must besecured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank. The market value of thepledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agentbank. These pledged securities are held in the name of the pledging fiscal agent bank in a holding or custodial bank thatis mutually acceptable to both parties. The deposits at December 31, 2005 were secured as follows:

CashCertificatesof Deposit Total

Deposits in bank accounts per balance sheet

Bank Balances (Category 3 Only, If Any)a. Uninsured and uncollateralizedb. Uninsured and uncollateralized with securities held by

the pledging institutionc. Uninsured and uncollateralized with securities held by

the pledging institution's trust department or agentbut not in the entity's name

Total Category 3 Bank Balances

Total Bank Balances (All Categories Including Category3 Reported Above)

0 $

CashCertificatesof Deposit Total

212,960 $ 0 $ 212.960

212,960

The following is a breakdown by banking institution and amount of the balances shown above:

Banking Institution AmountSabine State Bank $

Total S

B. Investments

At December 31, 2005, the North Sabine Fire Protection District had investments of $0.

212.960

16

NORTH SAB1NE FIRE PROTECTION DISTRICT2WOLLE. LOUISIANA


NOTE 3 ACCOUNTS RECEIVABLE

The following is a summary of accounts receivable at December 31, 2005:

Class of ReceivableTaxes $ 264,435State revenue sharing 9,786Other 0

Total S 274.221

NOTE 4 CAPITAL ASSETS

A summary of the North Sabine Fire Protection District's capital assets at December 31, 2005 follows:

Balance BalanceDecember 31, December 31,

2004 Additions Retirements 2005Capital Assets, not being depreciated

Land S 30,115 $ 0 $ 0 S 30,115Total Capital Assets, not being depreciated 30,115 0 0 30,115

Capital Assets, being depreciatedBuildings and building improvements 359,718 76,247 0 435,965Less accumulated depreciation (172,108) (32.183) 0 (204,291)

Total Buildings and building improvements 187,610 44,064 0 231,674

Automobiles 1,113,570 32,000 0 1,145,570Less accumulated depreciation (818.103) (72.454) 0 (890.557)

Total Automobiles 295,467 (40,454) 0 255,013

Machinery and equipment 472,124 204,941 0 677,065Less accumulated depreciation (103,328) (96.876) 0 (200,204)

Total Machinery and equipment 368,796 108.065 0 476.861Total Capital Assets, being depreciated 851.873 111.675 0 963.548

Total Capita] Assets, net $ 881,988 S 111.675 S 0 S 993.663

NOTE 5 ACCOUNTS PAYABLE AND ACCRUALS

The following is a summary of accounts payable at December 31, 2005:

Class of PayableVendor $ 10,486Ad valorem taxes-retirement system . 9,305Payroll taxes 918

Total $ 20,709

17



NOTE 6 LEASES

The North Sabine Fire Protection District was not obligated under any noncancellable capital or operating leasecommitments at December 31, 2005.

NOTE 7 LITIGATION

The North Sabine Fire Protection District was a defendant in one lawsuit as of December 31, 2005. Although theoutcome of this lawsuit is not determinate at this stage of the proceedings, the potential losses not covered by applicableinsurance is not considered to be significant in relation to the District's overall financial condition.

18

REQUIRED SUPPLEMENTARY INFORMATION

19

SCHEDULE INORTH SAB1NE FIRE PROTECTION DISTRICT

ZWOLLE. LOUISIANASTATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES OF

GOVERNMENTAL FUNDS - BUDGET (GAAP BASIS) AND ACTUALFOR THE YEAR ENDED DECEMBER 31, 2005

REVENUESTaxesState revenue sharingIntergovernmental revenuesInterest incomeMiscellaneous

Total Revenues

EXPENDITURESGeneral government

Persona! servicesTravelOperating servicesSuppliesProfessional services

Capital outlayTotal Expenditures

Excess/(Defkiency) Of Revenues Over Expenditures

Fund Balance, Beginning of year

Fund Balance, End of year

Original/FinalBudget

195,00020,000

202,0002,000

20.000439,000

30,9400

112,7005,2006,500

366.940522.280

(83,280)

560.638

Actual

259,17829,42557,883

3,02927,942

377,457

28,3560

128,6294,1184,236

313.188478,527

(101,070)

560.638

VarianceFav./(Unfav.)

64,1789,425

(144,117)1,0297.942

(61,543)

2,5840

(15,929)1,0822,264

53JS243.753

(17,790)

0

477.358 $_ 459.568 $ (17.7901

Supplementary information. Presented as additional analytical data. 20

OTHER SUPPLEMENTARY INFORMATION

21

SCHEDULE 2NORTH SABINE FIRE PROTECTION DISTRICT

ZWOLLE. LOUISIANASCHEDULE OF COMPENSATION PAID BOARD MEMBERS

DECEMBER 31.2005

Ellzy Anderson $ 360Albert Ezernack 540Jerry McDonald 540Gary Rivers, President 315Jim Veuleman 450Doug Williams 315

Total $ 2,520

The schedule of compensation paid to board members was prepared in compliance with House Concurrent ResolutionNo. 54 of the 1979 Session of the Louisiana Legislature.

In accordance with Louisiana Revised Statute 40:1498, members, including police jurors serving ex-officio, may be paidper diem of $30 for attending board meetings - not to exceed two meetings in one calendar month.

Supplementary information. Presented as additional analytical data. 22

SCHEDULESNORTH SABiNE FIRE PROTECTION DISTRICT

2WOLLE. LOUISIANASCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED DECEMBER 31. 2005

SECTION #1 SUMMARY OF AUDITORS' RESULTS

FINANCIAL STATEMENTS1. Type of auditors' report issued. Unqualified

2. Internal control over financial reporting:a) Material weaknesses identified? Noneb) Reportable conditions identified not considered to be

material weaknesses? Nonec) Noncompliance material to the financial statements noted? None

SECTION #2

FINANCIAL STATEMENT FINDINGS

2005-01 Actual revenues for the District were $61,543 (14.02 percent) less than budgeted amounts in 2005.

2005-02 Board members were paid a per diem of $45.00 for attending board meetings during 2005.

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MINES, JACKSON & HINES, L.L.C.CERTIFIED PUBLIC ACCOUNTANTS

FRANK S, HINES, CPA P.O. BOX 2188 -133 EAST FIFTH STREET A. NEILL JACKSON, JR., CPALEWIS C. HINES, CPA NATCHITOCHES, LA 71457 1926-1999E. MERLIN SQUYRES, CPAJAY H. SHEFFIELD, CPA Telephone (318) 352-6458

FAX (318) [email protected]

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVERFINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTSPERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

North Sabine Fire Protection DistrictP.O. Box 81Zwolle, Louisiana 71486

We have audited the basic financial statements of the North Sabine Fire Protection District, Zwolle, Louisiana, acomponent unit of the Sabine Parish Police Jury, as of and for the year ended December 31, 2005, and have issued ourreport thereon dated May 12, 2006. We conducted our audit in accordance with auditing standards generally acceptedin the United States of America and the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States.

ComplianceAs part of obtaining reasonable assurance about whether the North Sabine Fire Protection District's financial statementsare free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,contracts and grants, noncompliance with which could have a direct and material effect on the determination of financialstatement amounts. However, providing an opinion on compliance with those provisions was not an objective of ouraudit and, accordingly, we do not express such an opinion. The results of our tests disclosed two instances ofnoncompliance that are required to be reported under Government Auditing Standards. A description of the findingscan be found in findings 2005-01 and 2005-02 of the accompanying Corrective Action Plan For Current Year AuditFindings, Schedule 5.

Internal Control Over Financial ReportingIn planning and performing our audit, we considered the North Sabine Fire Protection District's internal control overfinancial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on thefinancial statements and not to provide assurance on the internal control over financial reporting. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control overfinancial reporting that might be material weaknesses. A material weakness is a condition in which the design oroperation of one or more of the internal control components does not reduce to a relatively low level the risk thatmisstatement in amounts that would be material in relation to the financial statements being audited may occur and notbe detected within a timely period by employees in the normal course of performing their assigned functions. We notedno matters involving the internal control over financial reporting and its operations that we consider to be materialweaknesses.

This report is intended solely for the information and use of the North Sabine Fire Protection District and the LegislativeAuditor of the State of Louisiana and is not intended to be, and should not be, used by anyone other than the specifiedparties. Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a publicdocument.

Mines, Jackson & HinesNatchitoches, LouisianaMay 12, 2006

-MEMBERS-American Institute of Certified Public Accountants Society of Louisiana Certified Public Accountants 24

SCHEDULE 4NORTH SAB1NE FIRE PROTECTION DISTRICT

ZWOLLE. LOUISIANASUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS

FOR THE YEAR ENDED DECEMBER 31, 2005

Ref. No.

Fiscal YearFindingInitially

Occurred Description of Findine

CorrectiveAction Taken

(Yes, No,Partially)

Planned CorrectiveAction/Partial

CorrectiveAction Taken

Nothing came to our attention that would require disclosure under Government Auditing Standards.

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SCHEDULESNORTH SABINE FIRE PROTECTION DISTRICT

ZWOLLE. LOUISIANACORRECTIVE ACTION PLAN FOR CURRENT YEAR AUDIT FINDINGS

FOR THE YEAR ENDED DECEMBER 31. 2005

Name(s) of AnticipatedRef. No. Description of Finding Corrective Action Planned Contact Person(s) Completion Date

2005-01 Actual revenues for the District The District will closely monitor Nick Spann 06/30/2006were $61,543 (14.02 percent) its budget and make amendments Fire Chiefless than budgeted amounts in to it as necessary to accurately2005. reflect expected revenues and

expenditures and to satisfy legalrequirements.

2005-02 Board members were paid a per The District will change its Nick Spann 06/30/2006diem of $45.00 for attending policy of paying board members Fire Chiefboard meetings during 2005. a per diem of $45.00 for

attending board meetings to$30.00. In addition, the boardmembers will repay the extra perdiem of $15.00 received forattending board meetings in2005.

26

HINES, JACKSON & MINES, L.L.C.CERTIFIED PUBLIC ACCOUNTANTS

FRANK S. HINES, CPA P.O. BOX 2188 -133 EAST FIFTH STREET. A. NEILL JACKSON. JR., CPALEWIS C. HINES, CPA NATCHITOCHES, LA 71457 1926-1999E. MERLIN SQUYRES, CPAJAY H. SHEFFIELD, CPA Telephone (318) 352-6458

FAX (318) 352-0404office® hjhcpa.biz

Board of CommissionersNorth Sabine Fire Protection DistrictZwolle, Louisiana 71486

We are writing this letter as a follow-up to our recent audit of the basic financial statements of the North Sabine FireProtection District, Zwolle, Louisiana, a component unit ofthe Sabine Parish Police Jury, as of December 31, 2005, andfor the year then ended. We offer the following observations and recommendations, which are intended to help improvecompliance, record keeping procedures and general operations ofthe District and are intended to be constructive innature:

1) Existing Conditions:

We noted that actual revenues for the District were $61,543 (14.02 percent) less than budgeted amounts in2005.

LSA-R.S. 39:1310 requires the District to amend its budget whenever actual revenues and expenditures areprojected to be less than or exceed budgeted amounts by more than five percent.

Recommended Action:

We suggest the District's adopted budget be closely monitored and amended whenever there has been a changein operations upon which the original adopted budget was developed. Care should be exercised to maintainactual revenues and expenditures within the five percent limit established by statute.

Management's Response:

The District will closely monitor its budget and make amendments to it as necessary to accurately reflectexpected revenues and expenditures and to satisfy legal requirements.

2) Existing Conditions:

We noted that board members were paid a per diem of $45.00 for attending board meetings during 2005.

LSA-R.S. 40:1498 limits board members per diem to $30.00 for attending board meeting, not to exceed twomeetings in one calendar month.

Recommended Action:

We suggest the District change its policy of paying board members a per diem of $45.00 for attending boardmeetings to $30.00. In addition, we suggest board members repay the extra per diem of $15.00 received forattending board meetings in 2005.

-MEMBERS-American Institute of Certified Public Accountants Society of Louisiana Certified Public Accountants 27

Page #2

Management's Response:

The District will change its policy of paying board members a per diem of $45.00 for attending board meetingsto $30.00. In addition, the board members will repay the extra per diem of $ 15.00 received for attending boardmeetings in 2005.

These comments and recommendations are not all inclusive and are not intended to be critical of anyone. We would liketo thank the District's management and staff for their courtesy and cooperation during our engagement. If you have anyquestions or concerns, please let us know.

Hines, Jackson & NinesNatchitoches, LouisianaMay 12, 2006

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