city of crowleyfile/...city of crowley, louisiana we have audited the accompanying financial...

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CITY OF CROWLEY, LOUISIANA

Financial Report

For the Year Ended August 31/2010

Under provisions of state law, this report is a public document. Acopy of the 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 appropriate, at the office of the parish clerk of court.

Release Date ^A'///

TABLE OF CONTENTS

Page

Lidependent Auditors' Report 1-2

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS) Statement of net assets 5 Statement of activities 6

FUND FINANCIAL STATEMENTS (FFS) Balance sheet - governmental funds 9-10 Reconciliation of the governmental funds balance sheet to the statement

of net assets 11 Statement of revenues^ expenditures, and changes in fund balances -

governmental funds 12-13 Reconciliation of the statement of revenues, expenditures, and changes

in fund balances of governmental funds to the statement of activities 14 Statement of net assets - proprietary funds 15 Statement of revenues, expenses, and changes in fund net assets -

proprietary funds 16 Statement of cash flows - proprietary funds 17-18

Notes to basic financial statements 19-50

REQUniEO SUPPLEMENTARY INFORMATION Budgetary comparison schedules:

General Fund 52 Sales Tax Fund 53 One-Half Cent Sales Tax -Salary Fund 54 One-Half Cent Sales Tax - Street Improvement Fund 55

OTHER SUPPLEMENTARY INFORMATION

OTHER FINANCIAL INFORMATION

Major Governmental Funds -

General Fund - budgetary comparison schedule - revenues 58-59

General Fund - budgetary comparison schedule- expenditures 60-63

(continued)

TABLE OF CONTENTS (continued)

Page

Nonmajor Governmental Funds -Combining balance sheet 64 Combining statement of revenues, expenditures, and changes in fund balances 65

Nonmajor Special Revenue Funds -Combining balance sheet 67-68 Combining statement of revenues, expenditures, and changes in fund balances 69-70

Nonmajor Debt Service Fund -Balance sheet 72 Statement of revenues, expenditures, and changes in fund balance 73

Nonmajor Capital Project Funds -Balance sheet 75

Internal Service Funds -

Combining statement of net assets 77 Combining statement of revenues, expenditures, and changes in fund net assets 78 Combining statement of cash flows 79

INTERNAL CONTROL, COMPLIANCE AND OTHER MATTERS Report on internal control over fmancial reporting and on compliance

and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards 81-82

Independent Auditor*s Report on compliance with requirements that could have a direct and material effect on each major program and on internal control over compliance in accordance with OMB Circular A-133 83-84

Schedule of expenditures of federal awards 85 Notes to schedule of expenditures of federal awards 86 Schedule of findings and questioned costs 87-88 Summary schedule of current and prior year audit findings ajid

and management's corrective action plan 89-94

C. Burton Kolder, CPA' Russell r. Charnpas"". CPA" Victor R. Saveri, CPA* P. Troy Courviiie, CPA* Gerald A. Thibodeaux, Jr..CPV Robert S.Caiter, CPA* Afltiur R. Mixon. CPA*

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

Tynee E. Mixon, Jr.. CPA Allen J. LaB.'y.CPA Alisert R. Leger, CPA.PFS.CSA* Penny AngcKc Sc^jgai^s. CPA Cliristino L. Cousin, CPA Mary T. Tblaccieau.*:, CPA MarshatlW. Guidry, CPA Alan M. Tayicr, CPA Jamss R. Roy, CPA Robenj. Meti, CPA Kcliy M, Dour,eI, CPA Cneryl L. Gariley. CPA Mgndy 8. Self. CPA Paul L. Deicamlxe. Jr, CPA Wanda F. Arcemenl, CPA. CVA Kfislin B. Dauzol, CPA Richard R. Andersen Sr. CPA Carolyn C. Andsrscn, CPA

Conrad O. Chapman. CPA* 2006 Harry J, ClosHo. CPA 2007

INDEPENDENT AUDITORS' REPORT

OFFICES

183 Sculh Beadle Rd. Lafayette, IJ* 70508 Phone (337) 232-4141 Fax (337) 232-8620

450 East Main Street New Iberia, LA 70560

Phore (337) 367-S2C4 Fax (337) 367-9203

113 East Bridge St. 200 Soulh Wain Street Breaux Brrdye, LA 70517 Abbeville, LA 70510 Phons (337} 332-4020 Phc^e {337 J 893-7944 Fa^ (337) 332-2857 Fax (337) 893-79.16

1234 David Or. Sic 203 Morgan City, LA 703E0 Phone tS85) 384-2020 Fax (93b) 384-3020

40$ VVssl Ccilon S(.-°et \^lle Platte. LA 70585 Phone (337) 3F.3-:::7S2 Fax (337) 363-3049

332 West Sixth Avenue Oberiin, LA 70555 Phnne (337) 633-4737 Fa\ 1337) 639-4568

1013 Main Sireet FranWin, LA 70538

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

i33EasiWaddiFSi. Marksville LA 71351

Phone (318) 253-9252 Fax (318) 253-8501

621 Mi=iln Sireel PinevilSe, LA 71360

Phone (318) 442-4421 Fax (318) 442-9333

• A ProrcssJonal Accoui irg Corpo(al:crt

WEB StTP WWW.KCSRCPAS.COM

The Honorable Greg A. Jones, Mayor and Members of the City Council City of Crowley, Louisiana

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Crowley, Louisiana, as of and for the year ended August 31. 2010, which collectively comprise the City's basic fmancial statements as listed in the table of contents. These fmancial statements are the responsibility of the City's management. Our responsibility is to express opinions on these fmancial statements based on our audit. The prior year comparative information has been derived from the City's 2009 financial statements and, in our report dated December 29, 2009, we expressed unqualified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information.

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 General of the United States. Tliose standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Crowley, Louisiana, as of August 31, 2010, and the respective changes in financial 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.

Member of; AMERICAN INSTITUTE OF CERTIFIED PUBLLC ACCOUNTANTS

Member of; SOCIETY OF LOUISIANA

CERTIFIED PUBLIC ACCOUNTANTS

http://WWW.KCSRCPAS.COM

In accordance with Government Auditing Standards, we have also issued our report dated January 14, 2011 on our consideration of the Cit>' of Crowley, Louisiana's internal control over financial reporting and on our tests of its compliance with certam provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed m accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

Accounting principles generally accepted in the United States of America require that the required supplementary information, on pages 52 through 55, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the GoveiTimental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain hmited 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 infonnation for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not.provide us with sufficient evidence to express an opinion or provide any assurance.

The Cit>' has not presented management's discussion and analysis that the Governmental Accounting Standards Board has determined is necessary to supplement, although not required to be part of, the basic financial statements.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Crowley, Louisiana's basic financial statements as a whole. The other supplementary information on pages 58 through 79 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards on page 85 is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States. Local Governments, and Non-Profit Organizations, and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciUng such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

Kolder, ChampagnCy Slaven & Company, LLC Certified Public Accountants

A-bbeville, Louisiana January 14,2011

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS)


Stalenicnt of Net Assets August 31, 2010

Primary Government

ASSETS Current assets:

Cash and interest-bearing deposits I.'i vestments Receivables, net

Due from other governmental units

Prepaid expense

Total current assets

Noncurrent assets; Restricted assets;

Interest-bearing deposits

Capital assets, net

Total noncurrent as.set.s

Total assets

Governmental Activities

$ 9.267.734 1,062,441

158,179 845,263 106,902

Business-Type Activities

$ ' 303,115 968

150,027

--

Total

S 9,570,849 1.063.409

308,206 845,263 106,902

11/140,519

681.696

16,520,535

17,202.231

28.642,750

454,110

743,734

15.498,792

16,242,526

16,696,636

11,894,629

1,425,430

32,019,327

33,444,757

45.339,386

LIABILITIES Current liabilities:

Accounts and other payables Contracts payable Claims payable Due to others Deferred revenue Bonds payable Capital lease payable Accrued interest payable

Total current liabilities

Noncurrent liabilities; Bonds payable Capital lease payable

Total noncurrent liabilities

Total liabilities

NET ASSETS Invested in capital assets, net of related debt Restricted for;

Debt service Sales tax dedications

Unrestricted

Total net assets

349,144 10,400

138,696 35,022

191,000 1,067,701

196,463 24,523

2.012,949

6,510,175 526,782

7,036,957

9,049,906

8,219,414

657,173 7,015,514

3,700,743

S 19.592,844

279,995 ----

440,000 --

719,995

4,160,646 -

4.160,646

4,880,641

10.898,146

303,734 -

614,115

5 11.815,995

629,139 10,400

138,696 35,022

191,000 1,507,701

196,463 24,523

2,732,944

10,670,821 526,782

11,197,603

13,930,547

19,117,560

960,907 7,015,514 4,314,858

5 31,408,839

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

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FUND FINANCIAL STATEMENTS (FFS)

MAJOR FUND DESCRIPTIONS

General Fund

The Genera] 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

special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes.

Sales Tax Fund To account for the receipt and use of proceeds of the City's one percent parishwide sales and use tax levied in 1963 and the one-half percent sales and use tax levied in I97S. The one percent sales and use tax is dedicated to the following purposes: (1) public safety, public health, public works, sanitation, general government; (2) maintaining and repairing streets, roads, highways, avenues, drain ditches and canals; and (3) providing for operating expenses of said departments including salaries of personnel and capital outlay. The one-half percent sales and use tax is dedicated to increasing the compensation of all employees of the Cily and for any other lawful corporate or public purpose.

One-Half Cent Sales Tax - Salary Fund To account for the receipt and use of proceeds of the City's one-half percent sales and use tax levied in 1982, which are dedicated for the purpose of City employee salary increases to be divided as follows: (1) 33-1/3% to all employees not otherwise covered herein, (2) 33-1/3% to all fire personnel, and (3) 33-1/3% to all police personnel (to be paid across the board equally).

One-Half Cent Sales Tax - Street Improvement Fund To account for the receipt and use of proceeds of the City's one-half percent sales and use tax levied in 1997, which is dedicated for the purposes of constructing, improving, and resurfacing City streets and to fund the proceeds of the tax into bonds to be issued in series from time to time for such purposes.

Enterprise Fund

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


Balance Sheet Governmental Funds

August 31,2010

ASSETS

Cash and interest-bearing deposits Investments Receivables:

Taxes receivable Accrued interest receivable Other Due from other funds

Due from other governmental units

Prepaid expenses

Total assets

General Fund

$ 1,770,487 1,059.170

135,014 3.335 2.500

100 76,222

106,902

$ 3,153,730

Sales Tax Fund

$1,136,388 K032

_

3,390 --

145,657 -

$1,286,467

One-Half Cent

Sales Tax -Salary Fund

$ 199,620 339

_

---

48,552 _

$ 248,511

LIABILITIES AND FUND BALANCES

Liabilities: Accounts payable Accrued liabilities Contract payable Claims payable Due to other funds Due to others

Total liabilities

Fund balances: Reserved for debt service Unreserved, designated for;

Collision losses Industrial inducement and development Public street improvements

Unreserved, undesignated Unreserved, undesignated, reported In:

Special revenue funds

Total fund balances

Total liabilities and fund balances

$ 94,905 $ 229,215

10,400 2,081

35,022

371,623

---

-

: —

$ --

-

.

-

249,548 35,323

471,786 2,025.450

_

2.782,107

$ 3.153,730

---

-

1,286.467

1,286,467

$1,286,467

---

-

248,511

248,511

$ 248,511

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

One-Half Cent

Sales Tax -Street

Improvement Fund

S 4,898,389 454

_

10,371 --

48,552 -

$ 4,957,766

Other Governmental

Funds

$ 1,312,641 1,446

_

1,181 K226 -

3,510 -

$ 1,320,004

Totals

$ 9,317,525 1,062,441

135,014 18,277 3.726

100 322,493 106,902

$10,966,478

$ 9,825 15,199

--100

-

25,124

$ 104,730 244,414

10,400 2,081

100 35,022

396,747

196,375 196.375

---

-

4,957,766

4,957,766

S 4,957,766

---

-

1,098.505

1,294,880

$ 1,320,004

249,548 35,323

473,786 2,025,450

7,591,249

10,569,731

$10,966,478

10


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

August 31, 2010

Total fund balances for governmental funds at August 31, 2010 SI0,569,731

Total net assets reported for governmental activities in the statement of net assets is different 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 % 5,836,742 Land improvements, net of $19,468 accumulated depreciation 77,870

Buildings and improvements, net of $1,943,795 accumulated depreciation 6,128,187 Infrastructure, net of $406,997 accumulated depreciation 2,135,820 Machinery and equipment, net of $1,379,971 accumulated depreciation 1,527,462 Autos and trucks, net of $1,856,453 accumulated depreciation 814,454 16,520,535

Long-term liabilities at August 31, 2010: Bonds and capital lease payable (8,322,797) Accrued interest payable (24,523) (8,347,320)

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. Those costs consist of:

Bond issue costs, net 21,676

Some revenues are not considered measurable at year end and therefore,

not available soon enough to pay for current year expenditures.

Sales taxes 522,770

Some revenues are received before the City has earned them; therefore,

under the accrual basis of accounting they aj-e deferred in the statement of

net assets (191,000)

Net assets of the Internal Service Funds 496.452

Total net assets of governmental activities at August 31, 2010 $ 19,592,844


11


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

For the Year Ended August 31.2010

Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and fees Investment income Mi.see 11 an ecu 5

Total revenues

Expenditures: Current -

General government Public safety Public works Economic development Culture and recreation Cemetery

Capital outlay Debt service -

Principal retirement

Interest and fiscal charges

Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources (uses): Proceeds from capital lease Proceeds from the sale of fixed assets Transfers in Transfers out

Total other financing sources (uses)

Net changes in fund balances

Fund balances, beginning

Fund balances; ending

General i'und

S 2,355,049 533,766

1,292,818 33,865

126.606 98,381

175,071

4.615,556

Sales Tax • Fund

$4,004,664 --

--

22.313 -

4,026,977

One-Half Cent

Sales Tax -Salary Fund

$ 1,334,888 -~

--

1.764 -

1,336,652

1,653.875 5,011.833 2,203.,024

196.867

1,285,136

707.039 174,437

11,232,211

(6,616,655)

406,988 26,090

5,493.010 (8,078)

5,918,010

(698,645)

__3,480,752

S 2,782.107

63.220 --

:

- •

_

-

63,220

3.963,757

_

-~

(4,262,000)

(4,262,000)

(298,243)

1=584,710

SL286,467

22.569 --

-

-

_

-

22,569

1,314.083

_

--

(1.354,010)

(1,354,010)

(39,927)

288,438

$ 248,511


One-Half Cent

Sales Tax -Street Other

Improvemem Governmental Fund Funds Total;

$ 1,334,888 -~ --

61.188 -

1,396,076

$ 315,056 -

32,969 309,514

-19,901

10,391

687,831

$ 9,344,545

533.766 1,325,787

343,379 126.606

203,547

185,462

12,063,092

21,470

------

-

-21,470

1,374,606

_

-779,607

(1,312,190)

(532,583)

842,023

4.115,743

$ 4,957,766

23,484

--

67,971

1,175,552

48,325

92,163

448.507

84,723

1,940,725

(1,252,894)

„

-1,478,822

(823,239)

655,583

(597,311)

_,_L_892,]9I

S 1,294,880

1,784,618

5,011,833 2,203.024

264,838

1,175,552

48,325

1,377,299

1,155,546

259,160

13,280,195

(1.217.103)

406,988 26,090

7.751,439 (7,759,517)

425.000

(792.103)

11,361,834

$10,569,731

13


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

to the Statement of Activities For the Year Ended August 31,2010

Total net changes in fund balances at August 31, 2010 per Statement of Revenues, Expenditures and Changes in Fund Balances

The change in net assets 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

Depreciation expense for the year ended August 31,2010

The proceeds of debt issuances provide current financial resources to govermnental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. This amount represents the net effect of these differences in the treatment of long-term debt and related items.

Governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.

Amortization of bond issue costs

Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue (expense) of the Internal service funds is reported with governmental activities.

The net effect of various miscellaneous transactions involving capital assets, such as sales, trade-ins, and donations, is to decrease net assets.

Difference between interest on long-term debt on modified accrual basis versus interest on long-term debt on accrual basis

Some revenues are received before the City has earned Ihem; therefore, as Uie City earns the revenue, it should be recognized in the statement of activities

(792,103)

$1,377,299 (1,004.202) 373,097

785,151

(12,386)

(213,601)

(106,260)

10,925

33,500

Because some revenues are not measurable at year end, they are not considered

"available" revenues in the governmental funds.

Sales taxes, net effect of adjustments

Total changes in net as.sets at August 31. 2010 per Statement of Activities

58,041

136,364


14

C r n ' OF CROWLEY, LOLiISlANA

Proprietary Funds

Statement of Net Assets August 31, 2010

ASSETS Current assets:


Accounts Interest

Total current assets

Noncurrent assets: Restricted assets -

Interest-bearing deposits

Capital assets, net of accumulated depreciation

Total noncurrent assets

Tola] assets

LIABILITIES

Current liabilities:

Accounts payable

Claims payable

Accrued liabilities

Payable from restricted assets -

Loans payable

Total current liabilities

Business-Type Activities

Utility Fund

S 303,111 968

140,148

9,879

454,106

Enteipiise Funds

Other Enterprise

Fund

$ 4 S

-

.

-

4

-

Total Enterprise

Funds

; 303.115 968

140.148

9,879

454,110

Governmental Activities Internal

Service Fund

S 631.905

-

-

LI 62

633.067

743,734

15,478,792

16,222,526

16.676,632

265,530

14,465

440.000

719,995

20,000

20,000

20,004

743,734

15,498.792

16.242,526

16,696.636

265,530

14,465

440,000

719,995

633,067

136.615

136,615

Noncurrent liabilities:

Loans payable

Total liabilities

NET ASSETS Invested in capital assets, net of related debt Restricted for debt service

Unresti-icted

Total net assets

4,160,646

4,880,641

10,878,146 303,734

614.111

$11,795,991 S

-

20,000 -

4

20,004

4,160,646

4,880,641

10,898.146 303,734

614.115

511,815,995

-

136.615

-

-

496.452

$496,452


15


Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Assets

For the Year Ended August 31, 2010

Operating revenues: Charges for services Other

Total operating revenues

Operating expenses: Salaries and wages Payroll taxes Retirement Group insurance General insurance Claims Telephone and utilities Professional services Collection fees Bad debts Depreciation Gas and oil Repairs and supplies Pretre^tment and inspections Miscellaneous

total operaring expenses

Operating loss

Nonoperating revenues (expenses): Grant revenue

Tax revenue

Interest income Interest expense and other fiscal charges

Total nonoperating revenues (expenses)

Business-Type Activiti I

Utility Fund

S 1,748,286 3,152

1,751,438

281.399 4,580

34,508 70,817 28,573

-89,968 72,783 45,264 15,198

1,001,534 28,182

210,141 19,748 48,405

1,951,100

(199,662)

1,000,000 232,158

18,884 (234,737)

1,016,305

Enterprise Funds Otlier

Enterprise Fund

S --_

---------------,

.

-----

ies -

Total Enterprise

Funds

S 1,748.286 3,152

1,751,438

281,399 4,580

34,508 70,817 28.573

-89,968 72,783 45,264 15,198

1,001,534 28,182

210,141 19,748 48,405

1,951,100

(199,662)

1.000,000

232,158

18,884 (234,737)

1,016,305

Governmental Activities Internal Service Fund

$1,168,952 24,440

1,193,392

----

228,718 1,067,045

-50,047

------

66,386

1,412,196

(218.804)

--

5,203 -

5,203

Income (loss) before transfers

Other financing sources (uses); Transfers in Transfers out


Change in net assets

Net assets, beginning

Net assets, endmg

816,643 816,643 (213,601)

612.603 (604,525)

8,078

824,721

10,971,270

Sn,795,991

--

.

-

20,004

S 20,004

612.603 (604,525)

8,078

824.721

10,991,274

$11,815,995

-_

(213.601)

710,053

S 496,452

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

16


Statement of (J ash Flows Proprietary Funds

For the Year Ended Aueust 31, 2010

Cash flows from operating activities: Receipts ft'om custom^TS Receipts fiom insured Receipts from interfund services provided Payments to suppliers Paym.ents for claims aiid loss time Payments to employees Other receipts

Net cash provided (used) by operating activities

Cash flows from, noncapital financing activities:

Proceeds from taxes levied

Cash paid to other funds

Transfers from other funds

Transfers to other funds

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

Federal grants and other contributions

Acquisition of property, plant and equipment

Net cash used by capital

and related financing activities

Cash flows from investing activities: Purchase of investments and interest-bearing deposits

with maturity in excess of ninety days Proceeds of investments and interest-bearing deposits

with maturity in excess of ninety days Interest on deposits

Net cash provided by investing activities

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents, beginning of year

Cash and cash equivalents, end of year

Business-Type Activities Enterprise Funds

Utility Fund

S 1,752,729

--

(310,534)

-(390.908)

3,152

1,054,439

232,158 249

612,603

(604,525)

240.485

(425,000) (225,463)

1,000,000

(1.644,573)

(1,295,036)

Other Enterprise

Fund

S -

-----: -

---

---

Total Enterprise

Funds

$ 1,752,729 --

(310.534)

-(390,908)

3,152

1,054,439

232,158 249

612,603 (604,525)

240,485

(425,000) (225.463)

1,000,000

(1,644.573)

(1,295,036)

Governmental Activities Internal Service Fund

$ 111,497

1,052.709 (346.533)

(1,029.593) -

29,187

(182,733)

---

---

(973,488) (973,488) (227.675)

—

L.

951,105 29,331

6,948

6,836

66,521

73,357 S

---

-

4

4

951,105 29.3,31

6.948

6.836

66.525

S 73,361

224,459 5,314

2,098

(180,635)

584,865

$ 404,230

(continued)

17


Comparative Statement of Cash Flows

Proprietary Funds (continued)

For the Year Ended August 31, 2010

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

Operating loss Adjustments to reconcile operating loss to

net cash provided (used) by operating activities:

Depreciation (Increase) decrease current assets:

Accounts receivable

Increase (decrease) current liabilities:

Accounts payable Accnied habilities

Claims payable

Net cash provided (used) by

operating activities

Business-Type Activities Enterprise Funds

Utility

Fund

S (199,662)

1.001,534

4,443

247,728

396 -

$1,054,439

Other Enterprise

Fund

S -

-

-

-

--

S -

Total

Enterprise

Funds

$ (199,662)

1,001,534

4,443

247,728

396

-

$1,054,439

Governmental

Activities Internal Service

Fund

5(218,804)

-

-

(1,382) -

37,453

5(182,733)

Reconciliation of cash and cash equivalents per statement

of cash flows to the balance sheet:

Cash and cash equivalents, beginning of period -Cash and interest-bearing deposits - unrestricted Cash and interest-bearing deposits - restricted

Less: Interst-bearing deposits with maturity in excess of 90 days

Total cash and cash equivalents

Cash and cash equivalents, end of period -

Cash and interest-bearing deposits - umestricted

Cash and interest-bearing deposits - restricted

Less: Interst-bearing deposits with maturity

in excess of 90 days


Net increase (decrease)

$ 303,394

714.232

(951,105)

66,521

303,111 743.734

(973,488)

73.357

$ 6,836

$

—

—

$

4

_

4

4

_

4

_

5

-

-

$

303,398 714,232

(95L105)

66.525

303,115

743.734

(973,488)

73,361

6,836

$ 809,324

(224,459)

584,865

631,905

(227,675)

404.230

$(180,635)

The accompanying notes are an integral part uf the basic fmancial statements.


Notes 10 Basic Financial Statements

(1) Siiminarv of Si.trnificant Accounting Policies

The accompanying financial statements of the City of Crowley (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. GAAP includes a.11 relevant Governmental Accounting Standards Board (GASB) pronouncements. In the government-wide financial statements, Financial Accounting Standards Board (FASB) Accounting Standards Codification have been applied unless those standards conflict with or contradict GASB pronouncements, in which case, GASB prevails. 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 Crowley was incorporated on 1886, under the provisions of the Lawrason Act. The City operates under a Mayor-City Council form of government. The City Council is comprised of nine members (one member is elected at large and two members are elected from each of the four wards of the City for terms of four years). The City provides the following services to the residents of the City as authorized by its charter: police and fire protection, street and drainage systems, sewer services, parks and recreation, planning and zoning, and economic development programs.

A financial reporting entity consists of (a) the primary government, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. GASB Statement No. 14, The Financial Reporting Entity, establishes criteria for determining which entities should be considered a component unit and, as such, part of the reporting entity for financial reporting purposes. The basic criteria are as follows:

1. A potential component unit must have separate corporate powers that distinguish it as being legally separate from the primary government. These include the right to incur its own debt, levy its own taxes and charges, expropriate property in its own name, sue and be sued in its own name without recourse to a State or local government, and the right to buy, sell, lease, and mortgage property in its own name.

2. The primary government must be financially accountable for a potential component unit. Financial accountability may exist as a result of the primary government appointing a voting majority of the potential component unit*s governing body; their ability to impose their will on the potential component unit by significantly influencing the programs, projects, activities, or level of services performed or provided by the potential component unit; or the existence of a financial benefit or burden. In addition, financial accountability may also exist as a result of a potential component unit being fiscally dependent on the primary government.

19

CITY OF CROWLEY, LOUISi/\NA

Notes to Basic Financial Statements (Continued)

In some instances, the potential component unit should be included in the reporting entity (even when the criteria above are not met), if exclusion would render the reporting entity's financial statements incomplete or misleading.

Based on the above criteria, the following goveiTimental organization is not considered part of the City and is thus excluded from the accompanying financial statements for the reasons noted below.

Crowley City Marshal - The salaries and related benefits of the Crowley Cit>' Marshal are funded through the City's General Fund as well as the Acadia Parish Police Jury. However, the City cannot significantly influence operations nor does it have responsibility for fiscal management,

B. Basis of Presentation

Govemmeni-Wide Financial Statements (GWTS)

The statement of net assets and statement of activifies display information about the City of Crowley, the primary government, as a whole. They include all funds of the reporting entity, except fiduciary funds. The primary government is reported separately fi om certain legally separate component units for which the primary government is financially accountable. 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 City's internal service funds are a governmental activity. Internal service fund activity is eliminated to avoid "doubling up" revenues and expenses.

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.

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. Fund financial statements report detailed information about the City.

20



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 fimds, each displayed in a separate column. A fund is considered major if it is the primary operating fund of the City, is determined major at management's discretion, 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 tjT^e; 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 -

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

The Sales Tax fund accounts for the proceeds of a one percent parishwide sales and use tax levied in 1963 and the one-half percent sales and use tax levied in 1978. These taxes are dedicated for the specific purposes described in Note 3.

The One-Half Cent Sales Tax - Salary Fund accounts for the proceeds of a one-half cent sales tax levied in 1982, which is dedicated as described in Note 3.

The One-Half Cent Sales Tax - Street Improvement Fund accounts for the proceeds of a one-half cent sales tax levied in 1997, which is dedicated as described in Note 3.

Proprietary Funds -

The City reports the following major enterprise fund:

Utility Fund

The Ufility fund is used to account for operations (a) that are financed and operated in a manner similar to private business enteiprises - 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 cliarges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incun'ed, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The City applies all applicable FASB Accounting Standards Codification

21



pronouncements issued after November 30, 1989 in accounting and reporting for its enterprise fund. Additionally, the City reports the following fund types:

Special revenue funds

Special revenue funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specific purposes.

Debt service funds

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

Capital projects funds

Capital projects funds are used to account for financial resources to be used to acquire, construct, or improve capital facilities not reported in other governmental funds.

Proprietary Funds -

Proprietary funds are used to account for ongoing organizations and activities that arc similar to those often found in the private sector. The measurement focus is based upon determination of net income, financial position, and cash flows.

Internal Service Funds -

Internal service funds are used to accoimt for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental unit, or to other govemmenlal imits, on a cost-reimbursement basis. The City's internal service funds are the Workmen's Compensation Fund and the Employee Benefit Plan 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 "when" transactions are recorded regardless of the measurement focus applied.

Measurement Focus

On the government-wide statement of net assets 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.

22



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

a. All governmental funds utilize a "current financial resources" measurement focus. Only current financial assets and liabihties 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 assets (or cost recovery), financial position, and cash flows. All assets and liabilities (whether curtent or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net assets.

Basis of Accounting

In the government-wide statement of net assets and statement of activities, both governmental and business-type activities are presented using the accrual basis of accounting. Under llie 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, and liabilities 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 accoimting. 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.

Program revenues

Program revenues included in the Statement of Activities are derived directly from the program itself or from parties outside the City's taxpayers or citizenry, as a whole; program revenues reduce the cost of the fimction to be financed from the City's general revenues.

23



Allocation of indirect expenses

The City reports all direct expenses by function in the Statement of Activities. Direct expenses are those that are clearly identifiable with a function. Indirect expenses of other functions are not allocated to those functions, but are reported separately in the Statement of Activities. Depreciation expense is specifically identified by function and is included in the direct expense of each function. Interest on general long-term debt is considered an indirect expense and is reported separately on the Statement of Activities.

D. Assets, Liabilities and Equity

Cash, interest-bearing deposits, and investments

For purposes of the statement of net assets, cash and interest-bearing deposits include all demand accounts, savings accounts, and certificates of deposits of the City.

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

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 when purchased.

Interfund receivables and payables

During the course of operafions, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as "due to and from other funds." Short-term interfiind 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 assets.

Receivables

In the government-wide statements, receivables consist ofall revenues earned at year-end and not yet received. Major receivable balances for the governmental activities include ad valorem and sales and use taxes. Business-type activities report customer's utility service receivables as their major receivables. Uncollectible utility service receivables are recognized as bad debts using the direct write-off method at the time information becomes available which would indicate the uncollectibility of the particular receivable. At August 31, 2010, an allowance for ad valorem taxes was considered unnecessary due to immateriality.

24

CTTY OF CROWLEY, LOUISIANA


Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in the applicable governmental or business-t>'pe 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 $1,500 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 September 1, 2003, 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 useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows:

Buildings and improvements 5-40 years Machinery and equipment 5-15 years Sewer plant 20-40 years Autos and tnicks 5 years

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

Restricted Assets

Restricted assets include cash and interest-bearing deposits of the proprietary fund that are legally restricted as to their use. Tlie restricted assets are related to revenue bond accounts.

Deferred Revenues

Deferred revenues arise when resources are received before the City has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when the City has a legal claim to the resources, the liability for defen-ed revenue is removed from the balance sheet and the revenue is recognized.

25



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 fund financial statements.

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

All long-term debt to be repaid from governmental resources is reported as liabilities in the government-wide statements. For government-wide reporting, the costs associated with the bonds are recognized over the life of the bond. As permitted by GASB Statement No. 34, the amortization of the costs of bonds will be amortized prospectively from the date of adoption of GASB Statement No. 34.

Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. The debt proceeds are reported as other financing sources and payment of principal and interest reported as expenditures. For fund financial reporting, issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures. The accounting for proprietary fund long-term debt is the same in the fund statements as it is in the government-wide statements.

Bond discounts/issuance costs

In governmental funds, bond discounts and issuance costs are recognized in the current period. In the govemment-wide statements, bond discounts and issuance costs are deferred and amortized over the terms of the bonds to which such discounts and costs apply.

Compensated Absences

After one year of employment with the City, each full-time employee is entitled to one week paid vacation, which is to be taken within the next year of employment. After two consecutive years of employment with the City, each full-time employee is entitled to tv 'O weeks paid vacation and for each year of employment thereafter. Annual vacation is not accumulated and compensation in lieu of vacation is not paid. Upon tennination, any accumulated vacation time is paid togetiier with any wages due as of the effective date of the employee's termination. No accrual is recorded for this as the amount at August 31, 2010 is determined immaterial.

All persons employed full-time by the city shall be entitied to a 15 day sick leave during each calendar year, which leave may be accumulated for a two-year period for a term of 30 full days if not used during the year which same accrues. Sick leave may not accumulate for more than two calendar years, and if not used during the year in which same accrues, may be used in subsequent years. Sick leave is not paid at termination.

26



Compensatory leave shall be earned at time and one-half rate for overtime work and work required on an observed holiday. However, any employee who accrues 240 hours of compensatory leave shall, for any additional overtime hours or work, be paid overtime compensation at time and one-half rate. Upon separation, each employee shall be paid the value of his/her accrued compensatory leave in a lump sum at a rate not less than the average regular rate received during the last three years of employment or the final rate received, whichever is higher. At August 31, 2010, the City has no material accumulated leave benefits required to be reported in accordance with GASB Statement No. 16 "Accounting for Compensated Absences".

Equity Classifications

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

a. Invested in capital assets, net of related debt - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowing that are attributable to the acquisition, construction, or improvement of those assets.

b. Restricted net assets - Consists of net assets with constraints placed on the use either by (1) extemal groups, such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. At August 31, 2010, the City reported $7,976,421 of restricted net assets, which is restricted by debt covenants or enabling legislation.

c. Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt."

hi the fund financial statements, governmental fund equity is classified as fund balance. Fund balance is further classified as reseiTed and unreserved, with unreserved further split between designated and undesignated. Proprietary fund equity is classified the same as in the govemment-wide statements.

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.

27



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, govemmental fimds 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 interfund transfers. For the purposes of the statement of activities, all interfund transfers between individual govemmental funds have been eliminated.

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

Ad valorem tax (30.25 mills) See Note 2 Sales tax See Note 3 Sewer revenues See Note 11

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

Budgets and Budgetary Accounting

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

1. The City Clerk prepares a proposed operating budget for the fiscal year and submits it to the Mayor and Cily Council not later than fifteen days prior to the beginning of each fiscal year.

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.

28



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. Budgetar>' 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 approvalof the Council.

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

7. Budgets for all funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgeted amounts are as originally adopted or as finally amended by the Council.

Ti. • Capitalization of Interest Expenses

It is the policy of the City of Crowley to capitalize material amounts of interest resulting from borrowings in the course of the construction of capital assets in the Proprietary Fund. At August 31,2010, there was no capitalized interest expense.

I. . Use of Estimates

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 amounts of revenues and expenditures during the reporting period. Actual results could differ firom those estimates.

(2) Ad Valorem Taxes

Ad valorem taxes attach as an enforceable lien on property as of January I of each year. Taxes are levied by the City in October and are actually billed to taxpayers in November. Billed taxes become delinquent on January 1 of the following year. The City bills and collects its own propert)' taxes using the assessed values determined by the tax assessor of Acadia Parish. Property tax revenues are recognized when levied to the extent that they result in current receivables.

29



For the year ended August 31, 2010, taxes of 30.25 mills were levied on property with assessed valuations totaling $66,424,630 and were dedicated as follows:

General corporate purposes 7.00 mills Street maintenance 5.00 mills Public buildings and drainage 5.00 mills Public recreation and parks 3,00 mills Disposal plant maintenance 3.50 mills Cemetery tax 0.75 mills Youth recreation tax 1.00 mills Fire and police 5.00 mills

Total 30.25 mills

Total taxes levied were $2,009,388. Taxes not collected during the year are considered uncollectible.

(3) Dedjcation of Proceeds and Flow of Funds - Sales and Use Tax

The proceeds of the 1% sales and use tax and the .5% sales and use tax levied by the City of Crowley that became effective on May 1, 1963 and February 1,1978, respectively, are accounted for in the Sales Tax Fund (2010 collections $4,004,664) and are dedicated for the following purposes:

1% Sales and Use Tax -

1. Public safety, public health, public works, sanitation, general government,

2. Maintaining and repairing streets, roads, highways, avenues, drainage ditches and canals, and

3. Providing for operating expenses of said departments including salaries of personnel and capital outlay.

.5% Sales and Use Tax -

1, Increasing the compensation ofall employees of the city, and

2. For any other lawful corporate or public purpose.

30

CITY OF CROWLEY, LOUISMNA


ITie proceeds of a .5% sales and use tax levied by the City that became effective on April 1, 1982 are accounted for in the One-Half Cent Sales Tax - Salary Fund (2010 collections $1,334,888) and are dedicated for the following purpose:

To be used for the purpose of City employee salaiy increases to be equally divided:

1. 33-1/3% to all employees not otherwise covered herein,

2. 33-1/3% to all fire personnel, and

3. 33-1/3% to all police personnel (increase to be paid across the board equally).

The proceeds of a .5% sales and use tax levied by the City that became effective on April 1, 1997 are accounted for in the One-Half Cent Sales Tax - Street Improvement Fund (2010 collections $1,334,888) and are dedicated for the following purposes:

1. Constructing, improving, and resurfacing Cily streets, and

2. To fund the proceeds of the tax into bonds to be issued in series from time to time for such purposes.

(4) Cash. Interest-Bearing Deposits and Investments

A. 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 state banks organized under Louisiana law and national banks having principal offices in Louisiana. At August 31, 2010, the City has cash and interest-bearing deposits (book balances) totaling $10,996,279 as follows:

Demand deposits Money market accounts Savings Time deposits Petty cash

Total

Govemmental

S

1

Activities

1,730,844 18,502

1,737,233 6,461,151

1,700

9,949,430

Business-type

$

i

Activities

68,648 -

4,713 973,488

-

1,046,849

$

L

Total

1,799,492 18,502

1,741,946 7,434,639

1,700

10,996,279

31

CITY OF CROWXEY, LOUISL\NA


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 the 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 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 pledging fiscal agent bank in a holding or custodial bank that is mutually acceptable to both parties. Deposit balances (bank balances) at August 31, 2010, are secured as follows:

Bank balances $ 10,993,033

Federal deposit insurance 3,587,756 • Pledged securities 7,405,277

Total S 10,993,033

As of August 31, 2010, the City's total bank balances were fully insured and collateralized with securities held in the name of the City by the pledging financial institution's agent and, therefore, they were not exposed to custodial credit risk.

Livestments

In accordance with GASB Codification Section 150.165, the investment in LAMP is not categorized in the three risk categories provided by GASB Codification Section 150.164 because the investment is in the pool of funds and thereby not e\'idenced by securities that exist in physical or book entry form. LAMP is administered by LAMP, Inc.; a non-profit corporation organized under the laws of the State of Louisiana, and is governed by a board of directors comprised of representatives from various local governments and statewide professional organizations. Only local governments having contracted to participate in LAMP have an investment interest in its pool of assets. While LAiMP is not required to be a registered investment company under the Investment Company Act of 1940, its investment policies are similar to those established by Rule 2-a7, which govems registered money market funds. The primary objective of LAMP is to provide a safe environment for the placement of public funds in short-term, high quality investments.

32

CITT OF CROWLEY, LOUISIANA


The LAMP portfolio includes only securities and other obligations in which local governments in Louisiana are authorized to invest. Accordingly, LAJvIP investments are restricted to securities issued, guaranteed, or backed by the U. S. Treasury, the U. S. Government, or one of its agencies, enterprises, or instrumentalities, as well as repurchase agreements collateralized by those securities. The dollar weighted average portfolio maturity of LAMP assets is restricted to not more than 90 days, and consists of no securities with a maturity in excess of 397 days. The fair market value of investments is determined on a weekly basis to monitor any variances between amortized cost and market value. The fair value of the School Board's investment in LAMP is the same as the value of the pool shares. Normally, investments are required to be reported at fair value. For purposes of determining participants' shares, investments are valued at amortized cost. Investments in an extemal investment pool can be reported at amortized cost if the extemal investment pool operates in a manner consistent with the Security Exchange Commission's (SEC's) Rule 2a7. LAMP is an extemal investment pool that operates in a manner consistent with SEC Rule 2a7. LAMP is designed to be highly liquid to give its participants immediate access to their account balances.

At August 31, 2010, the City's investments (book balance) totaled $1,063,409. The carrying amounts and approximate market values of investments at August 31, 2010 are summarized as follows:

Reported Amount/

Fair Value Fund

Major govemmental funds:

General

Interest Description Rate

Unrealized Cost Gain

Sales Tax

1/2 Cent Sales Tax - Salary

1/2 Cent Sales Tax - St. Imp.

Other funds

Major proprietary fund:

Utility fund

U.S. Treasury Notes and 5.5%-Securities 7.00% $ 992,563 $ 65,682

LAMP Variable 925

LAMP Variable

LAMP Variable

LAMP Variable

LAMP Variable

LAMP Variable

1,032

339

454

1,446

968

$ 1,058,245 925

1,032

339

454

1,446

968

S 997,727 S 65,682 $ 1,063,409

33



(5) Receivables

Receivablesat August 31, 2010 of $308,206 consistof the following: Franchise

Accounts Fees Interest Other Total Govemmental activities:

General Fund Sales Tax Fund 1/2 Cent Sales Tax - Street

Lmprovement Fund Internal Service Fund Other govemmental funds

Business-type activities: Utility Fund

Totals

Due from Other Govemmental Units

S

1

--

--

-

140,148

140,148

$135,014 -

--

-

-

$135,014

S 3,335

3,390

10,371 1,162 1,181

9,879

$ 29,318

$

L

2,500 -

--

1,226

-

3,726

$140,849 3,390

10,371 1,162 2,407

150,027

$308,206

Amounts due from other govemmental units consisted of the following at August 31, 2010:

Acadia Parish School Board for sales taxes collected but not remitted $ 765,531 Acadia Parish Police Jury for 2% fire insurance proceeds 53,162 Crowley City Court for court costs, officer fees, and witness fees 23,060 State of Louisiana for motor vehicle fees ' 3,510

Total $ 845,263

34



(7) Restricted Assets

Restricted assets consisted of the following at August 31, 2010:

Govemmental activities:

Sales Tax Bond Sinking Fund $ 196,375

Sales Tax Bond Reserve Fund 485,321

Total governmental activities 681,696

Business-type activities: Sewer Revenue Bond and Interest Sinking Fund 26,731 Sewer Revenue Bond Reserve Fund 567,003 Sewer Revenue Bond Renewal and Replacement Fund 150,000

Toal business-type activities 743,734

Total restricted assets $ 1,425,430

35



(8) Capital Assets

Capital asset activity for the year ended August 31 , 2010 was as follows:

Govemmental activities; Capital assets not being depreciated:

Land Construction in progress

Other capital assets: Land improvements Buildings and improvements Infrastmcturc Machinery and equipment

Autos and trucks

Totals

Less accumulated depreciation

Land improvements Buildings and improvements Infrastmcture Machinery and equipment Autos and tnicks

Total accumulated depreciation

Governmental activities, capital assets, net

Business-type activities: Capital assets not being depreciated:

Land Consmiction in progress

Other capital assets: Buildings and improvements Sewer plant Machinery and equipment

Autos and tmcks

Totals

Less accumulated depreciation Buildings and improvements Sewer plant Macliincry and equipment Autos and tmcks

Total accumulated depreciation

Business-type activities, capita] assets, net

Balance

09/01/09

$ 642,989 4,585,485

97,338 7,984,167 2,556,017 2,620,290 2,806,208

21,292,494

14,601

1,619,119 231,320

1,266,762 1,906,994

5,038,796

$ 16,253,698

$ 835.382 54,433

180,848 22,747,677

485,515 276,585

24,580,440

168,281 8,958,322 386,870 211,220

9.724,693

$ 14,855,747

Additions

$ 664,430

_

87,815 2,165

499,117 139,137

1,392,664

4.867 324,676 175,677 276,525 222,457

1,004,202

$ 388,462

S 270,717

-

1.417,489 10.806 -

1,699,012

443 948.894 34,763 17.434

1,001,534

$_ 697,478

Deletions

$ 56,162

-

-15,365

211,974 274.438

557,939

_

--

163,316 272.998

436,314

$ 121,625

$ 54.433

_

-38,580 18,416

111,429

_

38,580 18,416 -

56,996

S 54,433

Balance 08/31/10

$ 642.989 5,193.753

97,338 8,071,982 2,542,817'

2,907,433 2.670.907

22,127,219

19,468 1,943.795 406,997

1,379,971 1,856.453

5,606,684

$16,520,535

$ 835,382 270,717

180,848 24,165,166

457,741 258.169

26,168,023

168.724 9,868,636 403.217 228,654

10,669,231

$15,498,792

36

CITY OF CROWLEY, LOUISL-WA


Depreciation expense was charged to govemmental activities as follows:

General govemment $ 114,630 Public safery 388,683 Public works 288,682 Economic development 7,704 Culture and recreation 200,500 Cemetery 4.003

Total depreciation expense $1,004,202

Depreciation expense was charged to the business-type activities as follows.

Sewer $1,001,534

(9) Accounts, Salaries, and Other Payables

The accounts, salaries, and other payables of $629,139 consisted of the following at August 31,2010:

Govemmental Business-type Activities Activities Total

Accounts $ 104,730 $265,530 $ 370,260 Payroll liabilities 244,414 14,465 258,879

Totals $ 349,144 $279,995 $ 629,139

37



(10) Long-Term Liabilities

Long-term liabilities at August 31, 2010 are comprised of the following individual issues;

Govemmental activities -

Bonds pavable;

$4,830,000 Sales Tax Improvement Bonds, Series ST-1997A due in annual installments of $190,000 to $470,000 through June 1, 2012, at interest rates of 5.00% to 7.00%. The debt will be retired from proceeds of a special one-half percent sales tax. $915,000

$4,040,000 General Obligation Street Improvement Bonds, Series ST-1997B due in annual installments of $160,000 to $390,000 through June 1, 2012, at interest rates of 4.80% to 7.00%. The Debt will be retired from proceeds of property taxes. 765,000

$6,450,225 Louisiana Local Government Environmental Facilities and Conmiunity Development Authority Revenue Bonds, Series 2000A due in monthly installments of $2,700 to $38,925 through November 25, 2029, at a variable interest rate determined and reset weekly. The debt will be retired from excess annual revenue. 5.664 825

Total bonds payable $7,344,825

Less: unamortized bond issuance costs n i 676)

Net bonds payable 7,323,149

Other long-term debt:

The Municipal Police Employee's Retirement System (MPERS) liability was incurred July 1, 1984. This liability resulted from the merger of the City's pension obligations for retired members and beneficiaries into the MPERS of the Stale of Louisiana. The MPERS liability is due in quarterly installments of $21,644, including interest at 7.00% over a 30 year period, which commenced July 1, 1984. This debt will be retired from future revenues of the City. 254 727

Total governmental activities long-term liabilities 5 7 577 §75

38



Business-type activities -

Revenue bonds pavable;

$4,457,430 Sewer Revenue Bonds, Series 1995, due in annual installments of $170,000 to $280,000 through September, 2016; interest rate of 2.95%; to be retired from excess annual sewer revenues.

$2,783,189 Sewer Revenue Bonds, Series 2000, due in annual installments of $105,000 to $190,000 through March, 2022; interest rate of 3.95%; to be retired from excess annual sewer revenues.

$1,350,000 Sewer Revenue Bonds, Series 2006, due in annual installments of $40,000 to $95,000 through September, 2028; interest rate of 2.95%; to be retired from excess annual sewer revenues.

S 1,582,430

1,818,189

,265,000

Total business-type activities long-term liabilities

Less: unamortized bond issuance costs

Net business-type activities long-term liabilities

The long-term liabilities are due as follows;

Govemmental Activities Business-type Activities

4,665,619

(64,973)

$ 4,600,646

Year Ending August 31,

2011 2012 2013 2014 2015

2016-2020 2021-2025 2026-2030

Totals

Principal Payments

1,067,701 1.121,576

277,106 226,944 216,200

1,264,100 1,645,700 1,780,225

$ 7,599,552

Interest Payments

191,340 139,219 84,574 76,758 72,444

295,067 176,441 49.449

$ 1,085,292

Principal Payments

440,000 455,000 470,000 485,000 500,000

1,457,430 583,189 275,000

$ 4,665,619

Interest Payments

155,818 141,438 126,565 103,088 86,477

272,682 84,083 16,372

$ 986,523

Total

1,854,859 1,857,233

958,245 891,790 875,121

3,289,279 2,489,413 2.121,046

$14,336,986

39

CITY OF CROWLEY, LOUISLANA


Changes in General Long-Term Liabilities

During the year ended August 31, 2010, the following changes occurred in long-term liabilities transactions and balances:

Governmental activities: Bonds payable -

Sales Tax Street Improvement Bonds Series ST-1997A

General Obligation Street Improvement Bonds, Series ST-1997B

Revenue Bonds, Series 2000A

Total bonds payable

Other long-term liabilities

MPERS hability Total governmental

activities

Balance 9/1/2009

$ 1,340,000

1,120,000

5,832,125

8,292,125

322,485

$ 8,614,610

Additions

$

-

-

-

-

$

Less: unamortized bond issuance costs

Business-type activities: Sewer Revenue Bonds,

Series 1995 Sewer Revenue Bonds,

Series 2000 Sewer Revenue Bonds,

Series 2006 Total business-

type activities

Less: unamortized b

$ 1,827,430

1,953,189

1,310,000

$

-

-

$ 5,090,619 $

>ond issuance costs

Reductions

$ 425,000

355,000

167,300

947,300

67,758

$ 1,015,058

$ 245,000

135,000

45,000

$ 425.000

Balance 8/31/2010

$ 915,000

765,000

5,664,825

7,344,825

254,727

7,599,552

(21,676)

$ 7,577,876

$ 1,582,430

1,818,189

1,265,000

4,665,619

(64,973)

S 4,600,646

Due Within 1

$

—

1

S

$

One Year

445,000

375,000

175,200

995,200

72,501

1.067,701

255,000

140,000

45,000

440,000

40

CTTY OF CROWLEY, I,OUISIANA


(11) Flow of Funds: Restrictions on Use - Sewer Revenues

Under the tenns of the loan and pledge agreements with the Louisiana Department of Environmental Quality, all revenues derived from the operation of the utilities system are to be deposited into an account designated as the Sewer Revenue Fund and said account is to be maintained and administered in the following order of priority and for the following express purposes:

(a) The payment of all reasonable and necessary expenses of operating and maintaining the utilities system.

(b) Each month there shall be set aside into tiie Sewer Revenue Bond Sinking Fund on or before the 20 '* day of each month an amount equal to the principal, interest, and administrative fee accming with respect to the bonds for such calendar month together with such additional proportionate sum as may be required to pay such principal, interest, and administrative fee as fhcy become due.

(c) Each month, there shall be set aside into the Revenue Bonds Debt Service Reserve Fund on or before the 20'' day of each month a sum at least equal to 25% of the amount required to be paid into the Sewer Revenue Bond Sinking Fund until such time as there has been accumulated the lesser of (1) 10% of tlie proceeds of the bonds, or (2) tiie maximum scheduled principal and interest requirements for any succeeding year.

(d) Funds shall be set aside into the Sewer System Renewal and Replacement Fund to provide for extensions, additions, improvements, renewals, and replacements necessary to properly operate the utilities system. Transfers shall be made on or before the 20* day each month until the Fund equals $150,000.

All required transfers were made for the year ended August 31, 2010,

(12) Department of Environmental Quality Revolving Loans

During the 1996 fiscal year, the City Council approved a resolution to issue a maximum of $12,000,000 of Sewer Revenue Bonds, Series 1995 A to the Louisiana Department of Environmental Quality, to be issued in two or more series with the initial principal amount for the bonds being $4,500,000. The City entered into a loan and pledge agreement with the Department of Environmental Quality that allows the City to make draws of the $4,500,000 commitment as construction funds are expended for the construction and modification of wastewater treatment facilities. At August 31, 2010, amounts dra^^ l to date totaled $4,457,430.

During the 2000 fiscal year, the City Council approved a resolution to issue an additional $3,000,000 of Sewer Revenue Bonds to the Louisiana Department of Environmental Quality, issued as a parity obligation amount to the Series 1995A Bonds of $4,500,000. The City entered into a loan and pledge agreement with the Department of Environmental Quality that allows the City to make draws of the $3,000,000 commitment as construction funds are expended for the construction and modification of wastewater treatment facilities. At August 31, 2010, amounts drawn to date totaled $2,783,189.

41

CITY OF CROWLEY, LOUISL^NA


During the 2007 fiscal year, the City Council approved a resolution to issue an additional $1,350,000 of Sewer Revenue Bonds to the Louisiana Department of Environmental Qualit>', issued as a parity obligation amount to the Series 1995A Bonds of $4,500,000 and the Series 2000 Bonds of $3,000,000. The City entered into a loan and pledge agreement with the Department of Environmental Quality that allows the City to make draws of the $1,350,000 commitment as construction funds are expended for the construction and modification of wastewater treatment facilities. At August 31, 2010, amounts drawn to date totaled $1,350,000.

(13) gmployee Retirement

Substantially all employees of the City are members of the following statewide retirement systems; Municipal Employees' Retirement System of Louisiana, Municipal Police Employees' Retirement System of Louisiana, Firefighters Retirement System of Louisiana or Louisiana State Employees' Retirement System. Pertinent infonnation relative to each plan follows:

A. Municipal Employees Retirement Svstem of Louisiana (System)

Plan Description - The Municipal Police Employees' Retirement System (the System) is a cost-sharing multiple-employer public employee retirement system (PERS) as established and provided for by R.S. 11:1731 of the Louisiana Revised Statutes (LRS). The System is composed of two distinct plans. Plan A and Plaii B, with separate assets and benefit ptrovisions. All employees of the municipality are members of Plan A.

All permanent employees working at least 35 hours per week who are not covered by another pension plan and are paid wholly or in part from municipal funds and all elected municipal officials are eligible to participate in the System. Under Plan A, employees who retire at or after age 60 with at least 10 years of creditable service, at or after age 55 with at least 25 years of creditable service, or at any age with at least 30 years of creditable service are entitied to a retirement benefit, payable monthly for life, equal to 3% of their final-average salary for each year of creditable service. Final-average salary is the employee's average salary over the 36 consecutive or joined months that produce the highest average. Employees who terminate with at least the amount of creditable ser\ace 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 disabilit>' benefits. Benefits are established or amended by state statute.

The System issues an aimual 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 Employees Retirement System of Louisiana, 7937 Office Park Boulevard, Baton Rouge, Louisiana 70809, or by calling (225)925-4810.

Funding Policy - Under Plan A, members are required by state statute to contribute 9.25% of their annual covered salary and the City is required to contribute at an actuarially determined rate. The rate for 2010 was 13.5% of annual covered payroll.

42



Contributions to the System also include one-fourth of \% (except Orleans and East Baton Rouge parishes) of the taxes shown to be collectible by the tax rolls of each parish. These tax dollars are divided between Plan A and Plan B based proportionately on the salaries of the active members of each plan. The contribution requirements of plan members and the City arc established and may be amended by state statiite. As provided by R.S. 11:103, the employer contributions are dctennined 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 contributions to the System for the years ending August 31, 2010, 2009, and 2008 were $281,537, $262,160, and $265,702, respectively, equal to the required contributions for each year.

B. Municipal Police Employees Retirement System of Louisiana (Svstem)

Plan Description - The Municipal Police Employees' Retirement System (the System) is a cost-sharing multiple-employer public employee retirement system (PERS).

All full-time police otTicers employed by a municipality of the State of Louisiana and engaged in law enforcement, empowered to make arrests, providing they do not have to pay social security and providing they meet the statutory criteria are required to participate in the System. Employees who retire at or after age 50 with at lea.st 20 years of creditable service or at or after age 55 with at least 12 years of creditable service are entitied 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 the 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 termwation. 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 infonnation for the System. That report may be obtained by calling the Municipal Police Employees Retirement System of Louisiana, (225) 929-7411.

Funding Policy - Plan members are required by state statute to contribute 7.5% of their annual covered salary and the City is required to contribute at an actuarially determined rate. The rate for 2010 was 11.0% of annual 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 contributions to the System for the years ending August 31, 2010, 2009, and 2008 were $185,048, $123,162, and $146,328, respectively, equal to the required contributions for each year.

43

CTTY OF CROWLEY, LOUISL\NA


C. Firefighters' Retirement System of Louisiana

Plan Description - The Firefighters' Retirement System (the System) is a cost-sharing multiple-employer public retirement system (PERS), as established and provided for by R.S. 11:2251 tiirough 2269 of the Louisiana Revised Statutes (LRS).

Membership in the Louisiana Firefighters' Retirement System is mandatory for a full-time firefighters employed by a municipality, parish, or fire protection district that did not enact an ordinance before January 1, 1980, exempting itself from participation in the System. Employees are eligible to retire at or after age 55 with at least 12 years of creditable service or at or after age 50 with at least 20 years of creditable service. Upon retirement, members are entitied to a retirement benefit, payable monthly for life, equal to 3 1/3% of their final-average salary for each year of creditable service, not to exceed 100% of their final-average salary. Final-average salary is the employee's average salary over the 36 consecutive or joined months that produce the highest average. Employees who terminate with at least 12 yeai's of service and do not withdraw their employee contributions may retire at or after age 55 (or at or after age 50 with at least 20 years of creditable service at termination) and receive the benefit accrued to their date of termination. The System also provides death and disability benefits. Benefits are established or amended by state statute.

The System issues an annual pubhcly available financial report that includes financial statements and required supplementary information for the System. That report may be obtained by writing lo the Firefighters' Retirement System, Post Office Box 94095, Baton Rouge, Louisiana 70804, or by calling (225) 925-4060.

Funding Policy - Plan members are required by state statute to contribute 8.0% of their annual covered salary and the City is required to contribute at an actuarially determined rate. The rate for 2010 was 13.75% of annual 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 oH the valuation for the prior fiscal year. The City's contributions to the System for the years ending August 31, 2010, 2009 and 2008 were $203,742, $149,061, and $153,206, respectively, equal to the required contributions for each year.

D. Louisiana Slate Employees' Retirement Svstem

Plan description - The Louisiana State Employees' Retirement System (the System) is a single-employer public employee retirement system established under the provisions of Titie H, Section 401, of the Louisiana Revised Statutes of 1991, controlled and administered by a separate board of tnistees.

All State permanent employees are mandated by State Law to participate in the System and all elected or appointed officials are eligible to participate in the System. Employees who retire at or after age 60 with at least 10 years of creditable service, at or after age 55 with 25 years of creditable service, or at any age with at least 30 years of creditable service are entitled to a retirement benefit payable monthly for life, equal to

44



3.5% of their average annual compensation for every year of service plus $300. Average compensation is the employee's monthly earnings during the 36 consecutive months that produce the highest average. Employees who terminate with at least the amount of creditable service stated previously and who do not withdraw their employee contributions, may retire at the ages specified previously and receive the benefit accrued to their date of termination. The System also provides death and disability benefits. Benefits arc established by State statute.

The Louisiana State Employees' Retirement System issues a publicly available financial report that includes financial statements and required supplementaiy information. That report may be obtained by writing Louisiana State Employees' Retirement System, Post Office Box 44213, Baton Rouge, Louisiana 70804-4213.

Funding policy - Plan members (judges) are required to contribute 11.50% of their annual covered salary and the City is required to contribute at an actuarially determined rate. The current rate is IS.6% of annual covered payroll. The contribution requirements of Plan members and the City are established and may be amended by the System's Board of Trustees. The City's contributions to the System for the years ended August 31, 2010, 2009, and 2008 were $4,537, $4,429, and $5,652, respectively, equal to the required contributions for each year.

(i4) Commitments and Contingencies

Litigation

At August 31, 2010, the City of Crowley was a defendant in several lawsuits. Reserves for claims losses are established and recorded as liabilities of the Risk Management Fund when information available indicates that it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. The City's legal counsel has reviewed the claims and lawsuits, in order to evaluate the likelihood of an unfavorable outcome to the City and to arrive at an estimate, if any, of the amount or range of potential loss to the City not covered by insurance. As a result of the review, there are no claims and lawsuits that an unfavorable outcome would materially affect the financial statements. Also, the City may be exposed to losses for which the amounts cannot be determined at this time.

Grant Audits

The City receives federal and state grants for specific purposes that are subject to review and audit by federal and state agencies. Such audits could result in a request for reimbursement by these agencies for expenditures disallowed under the terms and conditions of the appropriate agency. In the opinion of City management, such disallowances, if any, will not be significant to the City's financial statements.

45

CITY OF CROWLIiY, LOUISIANA


(15) Leases

A. Operating Lease

The City entered into a lease of premises with option to purchase agreement with La Pac Manufacturing, Inc. (La Pac) on September 23, 2006. These leases are for an initial term of five years. Under this lease the Cily is to receive from La Pac a monthly rental of $2,792, due on the 1 ' day of each month for a term of 10 years, commencing on September 1, 2006. The agreement will automatically renew for an additional term of ten years unless lessee shall cancel this lease. As part of the agreement. La Pac elected in advance to pre-pay the City $325,000 for which the lessee is relieved of the obligation of monthly rental payments equivalent to 116.4 months. The $325,000 was received by the City in fiscal year 2006 and set up as defeired revenue and is being amortized over the 116.4 months. Income recognized for the year ended August 31, 2010 was $33,500. The future minimum rentals for this agreement is as follows:

2011 $ 33,500

2012 33,500

2013 33,500

2014 33,500

2015 33,500

2016 23,500

Total $191,000

B- Capital Lease

In November 2007, the City entered into a lease agreement as lessee financing the acquisition of two new fire pumper apparatus. In September and November 2009, the City entered into two lease agreements as lessee financing the acquisition of a gradall and a street sweeper. The lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date. The future minimum lease obligation and the net present value of the minimum lease payments as of August 31, 2010 were as follows:

46



2011 $231,257

2012 231,257

2013 231,257

2014 94,032

2015 13,543

Total minimum lease payments 801,346 Less; amount representing interest (78,101)

Present value of minimum lease payments $723,245

At August 31, 2010, the equipment is included in capital assets with a cost of $1,010,918 and accumulated depreciation of $190,129. Depreciation expense of $84,441 was recorded for these assets at August 31, 2010.

( 6) Compensation of City Officials

A detail of compensation paid to the Mayor and Aldermen for the year ended August 31 2010 follows:

Mayor: Greg Jones $ 64,088

Council Members: Steven C. Premeaux - Mayor pro-tem 8,100 Vernon Martin 6,900 Mary T. Melancon 6,900 Laurila D. Pete 6,900 Kathleen M. Valdetero 6,900 Lyle Fogleman 6,900 Todd Whiting 6,900 Jeffery Dore 6,900 Elliot J. Dore 6,900

$ 127,388

(17) Risk Management

A. Workmen's Compensation and Commercial Insurance Coverage

Effective February 1, 1994, the City established a risk management program for its workman's compensation coverage and accounts for it in the Workmen's Compensation Fund. Interfund premiums arc paid into this fund and are available to pay claims and administrative costs.

47


Notes to Basic financial Statements (Continued)

The City adopted the provisions of GASB Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues. As required by the standard, a reconciliation of claims liabilities is shown below. All funds of the City participate in the program and make payments to the Workmen's Compensation Fund based on premiums needed to pay prior and cuiTcnt year claims, administrative costs, and commercial insurance premiums and to establish a reserve for losses relating to catastrophes.

For the year ended August 31, 2010, the claims liability of $36,531 was reported in the Group Insurance Fund. The claims liability is based on the requirements of GASB Statement No. 10, which are that a liability for claims be reported as of the financial statement date if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

Reconciliation of Claims Liabihties

2010 2009

Unpaid claims, beginning $ 47,037 S 38,508 Claims incuired 170,459 210,148 Claims payments (180,965) (201,619)

Unpaid claims, ending $ 36.531 $ 47,037

Claims payable of $36,531 at August 31, 2010 consisted of claims incurred prior August 31, 2010 and paid in September, 2010 tiirough October, 2010.

B. Group Self- Insurance

Effective May 1, 1990, the City established a risk management program for its group health and life insurance coverage and accounts for it in the Employee Benefit Plan Fund. Both the employer and employees' share of premiums are paid into tliis fund and are available to pay claims and administrative costs. Interfund premiums are based primarily upon the insured fund's number of participants.

The City adopted the provisions of GASB Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues. As required by the standard, a reconciliation of claims liabilities is shown below. For the year ended August 31, 2010, the claims liability of $100,084 was reported in tbe Employee Benefit Plan Fund. The claims liability is based on the requirements of GASB Statement No. 10, which are that a hability for claims be reported as of the financial statement date if information prior to the issuance of the fmancial statements indicates that it is probable that a liability has been inciured and the amount of the loss can be reasonably estimated.

48

CITY OF CROWLEY, LOUISL\NA


Reconciliation of Claims Liabihties

Unpaid claims, beginning Claims incurred Claims payments

Unpaid claims, ending

2010

S .52,125 927,724

(879,765)

2009

$ 19,232 604,982

(572,089)

$ 100,084 $ 52,125

Claims payable of $100,084 at August 31, 2010 consisted of claims incurred prior to August 31, 2010 and paid in September, 2010 through November, 2010.

(18) hiterfund Receivables/Payables and Interfund Transfers

A. A summary of interfund receivables and payables at August 31, 2010 follows:

Interfund Receivables

Major governmental funds; General Fund

Other govemmental funds

Total major governmental funds

$ 100

100

Interfund Payables

100

100

The amounts due from the General Fund to various other funds are for reimbursements owed for expenditures paid for those funds.

B. Interfund transfers consisted of the following at August 31, 2010:

Major govemmental funds: General Fund Sales Tax Fund 1/2 Cent Sales Tax - Salaiy Fund 1/2 Cent Sales Tax - Street Improvement Fund

Other govemmental funds

Total govemmental funds

Proprietary funds: Enterprise Fund

Total

Transfers In Transfers Out

$ 5,493,010

-

-

779,607

1,478,822

7,751,439

612,603

$ 8,364,042

$ 8,078

4,262,000

1,354,010

1,312,190

823,239

7,759,517

604,525

$ 8,364,042

49



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

(19) Subsequent Events

The City evaluated subsequent events through Januar>' 14, 2011, the date which the financial statements were available to be issued.

(20) New Accounting Pronouncements

In March 2009, the Govemmental Accounting Standards Board (GASB) approved Statement No. 54, "Fund Balance Reporting and Govemmental Fund Type Definitions (Statement)". The statement will require fund balances for each of the City's governmental funds to be displayed in various classifications depicting the relative strength of the spending constraints placed on the purposes for which resources can be used. The provisions of GASBS No. 54 must be implemented by the City for the fiscal year ending August 31, 2011. Implementation will require the City to restate existing fund balances for the govemmental funds.

50

REQUUiED SUPPLEMENTARY INFORMATION

51

CITY OF CROWLEY, LOUISIANA General Fund

Budgetary Comparison Schedule

For the Year Ended August 3 L 2010

Revenues:

Taxes

Licenses and permits

Intergovernmental

Charges for services

Fines and fees

Investment income

Miscellaneous

Total revenues

Budget Original

$2,478,650 522,600.

1,815,500

36,205

106,000 112,250 172,015

5,243,220

Final

$2,336,350 522,600

1,459,500

34,205

126,000

87,250 158,515

4,724,420

Actual

$2,355,049

533,766 1,292,818

33,865

126,606 98,381

175,071

4,615,556

Variance with Final Budget

Positive (Negative)

$ 18,699 11,166

(166,682)

(340)

606

11,131 16,556

(108,864)


General government Public safety Public works Economic development




Total expenditures

1,434,680

4,958,980 1,891,910

160,000 1,500,500

745,033 244,067

10.935,170

1,642,430

4,930,480 2,232,835

222,000 1,353,095

706,633 177,967

11,265,440

1,653.875

5,011,833 2,203,024

196,867

1,285,136

707,039 174,437

11,232,211

(11,44.5)

(81.353) 29,811

25,133

67,959

(406) 3,530

33,229

Deficiency of revenues

over expenditures (5,691,950) (6,541,020) (6,616,655) (75,635)

Other financing sources (uses):

Proceeds from capital lease

Proceeds from sale of capital assets Transfers in

Transfers out


Net change in fund balance

Fund balance, begimiing

Fund balance, ending

-

-5,457,310

-

5,457,310

(234,640)

3,480,752

$3,246,112

-

25,000 5,493,010

-

5.518,010

(1,023,010)

3,480,752

$2,457,742

406,988

26,090 5,493.010

(8,078)

5,918,010

(698,645)

3,480,752

$2,782,107

406,988

1,090 -

(8,078]

400.000

324,365

_

$ 324,365

52

CITY OF CROWLEY, LOUISIANA Sales Tax Fund

Budgetary Comparison Schedule For the Year Ended August 31, 2010

Revenues; Taxes

Investment income

Total revenues

Budget Original

$4,635,000 85,000

4,720,000

Final

$3,935,000 40,000

3,975,000

Actual

$4,004,664 22,313

4,026,977


Positive (Negative)

S 69,664

(17,687)

51,977

Expenditures:

Current -

General govemment

Total expenditures

Excess of revenues over expenditures

Other financing uses; Transfers out


Fund balance, beginning


172,725

172,725

1,584,710

62,225

62,225

63,220

63,220

4,547,275 3,912,775 3,963.757

(4,547,275) (4,362,000) (4,262,000)

(449,225) (298,243)

1,584,710 1,584,710

(995)

(995)

$ 1,584,710 $ 1,135.485 $ 1,286,467

50,982

100,000

150,982

$ 150,982

53

CITY OF CROWLEY. LOUISIANA One-Half Cent Sales Tax - Salary Fund

Budgetary Comparison Schedule For the Year Ended August 3 L 2010

Revenues: Taxes

Investment income

Total revenues

Original Budget

$1,545,000 400

1,545,400

Final Budget

$1,311,667 400

1,312,067

Actual

$1,334,888 1,764

1,336,652


Positive (Negative)

$ 23.221 1,364

24,585

Expenditures:

Current -

General govemment

Total expenditures


Other financing uses: Transfers out

26,375

26,375

22,875

22,875

22.569

22,569

1.519,025 1,289,192 1,314,083

(1,423.010) (1,354,010) (1,354.010)

306

306

24,891




96,015 (64.818) (39,927) 24,891

288,438 288,438 288,438 -

$ 384,453 $ 223,620 $ 248,511 $ 24,891

54

CITY OF CROWLEY, LOUISL\NA One-Half Cent Sales Tax - Street hnprovement Fund

Budgetar>^ Comparison Schedule For the Year Ended Auc^ust 31, 2010

Revenues; Taxes

Investment income

Total revenues

Original

Budget

$1,545,000 130,000

1,675,000

Final Budget

$1,311,667 130,000

1,441,667

Actual

$1,334,888 61,188

1,396,076


Positive (Negative)

$ 23,221

(68,812)

(45,591)


General goveiTimenl

Total expenditures


Other financing uses: Transfers in Transfers out

Total other financing

sources (uses)

24,750

24,750

21.250

21,250

21,470

21,470

1,650,250 1,420,417 1,374,606

779,607 779,607 (766,190) (1,312,190) (1,312,190)

(766,190) (532,583) (532,583)

(220)

(220)

(45,811)




884,060 108,227 842,023

4,115,743 4,115,743 4,115,743

(45,811)

$4,999.803 $4,223,970 $4,957,766 $ (45,811)

55

OTHER SUPPLEMENTARY INFORMATION

56

OTHER FINANCIAL INFORMATION

57


Budgetary Comparison Schedule - Revenues For the Year Ended August 31,2010

With Comparative Actual Amounts for the Year Ended August 31, 2009

2010

Taxes;

.Ad valorem

Electric franchise

Gas franchise

'telephone franchise

Cable TV franchise

Water franchise

In lieu of tax payments

Interest and penalties on taxes

Total taxes

Licenses and permits;

Occupational licenses

Insurance licenses

Liquor licenses

Building permits

Chain store licenses

Other licenses and permits

Total licenses and permits

Intergovernmental: Beer tax revenue Video poker tax revenue 2% fire insurance proceeds Federal grants State grants

Total intergovernmental

Charges for services:

Lot cutting fees

Animal control fees

Frame and grate income

State highway clean-up fees

Miscellaneous fees

Total charges for sepr'ices

Bu Original

$1,470,150

637,000

135,000 61.000

100,000 61,000

10,000

4,500

2,478,650

220,000

230,000

28,600

24,000 11,500

8,500

522,600

28,000 478,000

58,000 1,019,000

232,500

1,815,500

6,000

1,000

2,000 24.730

2,475

36,205

dget

Final

$1,461,350

524,000

115.000

61,000

100,000 61,000

10.000

4,000

2,336,350

220,000

230.000 28,600

24,000 11,500

8,500

522,600

26,000 408,000

58,000

569,250 398,250

1,459,500

5,000

100 2,000

24,730

2,375

34,205

Actual

51,459,128 542,411

111,225

50.576

112,781

62,109

10,000 6.819

2,355,049

227,448

231.909

31,486 24,605

10.676 7,642

533,766

26,337 419,313

53,162

498,493 295,513

1,292,818

4,069

80 1,265

24,730 3,721

33.865

Variance with

Final Budget

Positive (Negative)

$ (2,222) 18.411

(3,775) (10,424)

12,781

1,109 -

2,819

18,699

7.448

1,909

2,886 605

(824)

(858)

11,166

337 11,313 (4,838)

(70,757) (102,737)

(166,682)

(931)

(20)

(735) -

L346

(340)

2009 Actual

$1,431,584

568,999

134,943

57,807

107,206

61,597

10.000

3,979

2,376,115

219,930

228,389 28,396 19,907

1L225

8,486

516,333

27,995

463,711 59.549

3,696,936 369.269

4,617,460

7,328

445 800

24,730 3,744

37,047

(continued)

CITY OF CROWLEY, LOUISUNA

General Fund

Budgetary Comparison Schedule - Revenues (Continued)

For the Year Ended August 31,2010

With Comparative Actual Amounts ibr the Year Ended August 31, 2009

2010

Fines and fees:

Court fines and fees

Investment income

Miscellaneous:

Rental of property

July-fete fundraiser

Mardi Gras fundraiser

Gas and oil royalties

Miscellaneous police revenues

Retirees insurance reimbursements

Other

Total miscellaneous

Total revenues

Budget

Onginal

106,000

112,250

94,240

3,500

14,000

7,500

18,525

16,500

17,750

172,015

$5,243,220

Final

126,000

87,250

87,240

3,500

12,000

5,500

22,025

16,500

1L750

158,515

$4,724,420

Actual

126,606

98,381

86,795

2,464

11,984

8,377

24,840

20,854

19,757

175,071

$4,615,556

Variance with

Final Budget

Positive

(Negative)

606

11,131

(445)

(1,036)

(16)

2,877

2,815

4,354

8,007

16,556

$ (108.864)

2009

Actual

97.827

139,897

92,315

2,813

14,077

12,951

19,532

19,174

271.577

432,439

$8,217,118

59


Budgetary Comparison Schedule - Expenditures For the Year Ended August 31, 2010

With Comparative Actual Amounts for the Year Ended August 31, 2009

2010

General govemment -Administrative;

Salaries and wages Payi-oU taxes Retirement Group insurance General insurance Office expense Telephone and utilities Professional services Computer expense Convention and schools Dues Publication expense Tax roll expense Collision loss Disaster expense Repairs and maintenance Miscellaneous

Total administrative

Courts; Salaries and wages Payioll taxes Retirement Group insurance

General insurance City court appropriation Telephone and utilities Miscellaneous

Total courts

Total general government

Budg Original

S 518,600 8.875

59,500 129,860 30,000 26.000 12.500 85,500 39,500 20,500

5,000 35,100 10,000

107,250 1,500

. 15,500 73,425

1,178.610

126,525 2,005

24,460 40,830

10,500 45,000 2,750 4,000

256.070

1,434,680

;et Final

$ 518.600 8,875

59,500 132,860 30,000 26.000 10,500 88.500 46.500 21,500

5,000 35,100 10.000

257.250 39.500 15,500 81.175

1,386.360

133,525 2,130

25,835 44.705

10.500 31,350 2,750 5,275

256,070

1,642,430

Actual

$ 506,118 7,618

58.812 132,415 29,408 16,542 10,960

210,052 48,087 19,171 4,018

19,698 9,478

233,057 31,869 14.661 51,234

1,403,198

131,630 • 2,019

25.446 43,127

9,828 31.350 2,532 4,745

250,677

1,653.875


Positive (Negative)

S 12,482 1,257

688 445 592

9,458 (460)

(121,552) (1.587) 2,329

982 15,402

522 24,193

7,631 839

29,941

(16,838)

1,895 111 389

1,578

672 -218 530

5,393

(11,445)

2009 Actual

$ 510,400 7.757

57,414 124,206 27,872 24,371 11,115 82,437 36.905 18,636 3,632

21.541 9,187

97,496 69,162 16,908 61,640

1,180,679

119,317 1,663

23,514 33,308

9,587 30,000

-7.622

225,011

1,405,690

(continued)

60


Budgetary Comparison Schedule - Expenditures (Continued) For tbe Year Ended August 31, 2010

With Comparative .Actual Amounts for the Year Ended August 31, 2009

2010

Budget

Original Final Actual

Variance with

Final Budget Positive

(Negative) 2009

Actual

Public safety -Fire department:

Salaries and wages Payroll taxes Retirement Group insurance General insurance Telephone and utilities Gas and oil Repairs and supplies Uniforms

Extemal appropriations Fire prevention Miscellaneous

Total fire department

1.231.000

23,850 175.625

259,085

63,000

45,500

17,000 81.900

13,000

12,000 9.050

29,300

1.211,000 23.850 175,625 259,085

63,000

45,500

17,000

89,400

13,000 12,000

9.050 23.300

1,204,724

22,702 206,141

250.530

64,298 43,662

13,913 87,737

11,895

12,000 2,456 9,372

6,276 1.148

(30,516)

8,555

(1,298)

1,838 3.087

1.663

1,105

-6.594

13,928

L 186,208 21.999 158,147

237,128 59,892

44,828

12,867 65,284

12,178

12,000

16,158 15,532

1,960,310 L94L8I0 1,929,430 12,380 1,842,221

Police department: Salaries and wages Payroll taxes Retirement Group insurance General insurance Office expense Telephone and utilities Computer expense Gas and oil Repairs and mainienanacc Conventions and schools Building rental Miscellaneous

Total police department

1,542,750

26,300 173,650 310,650

165,000 10,500 59.000 15,500 95,000 69,100

20,000 82,125 30,900

1,542,750

26,300 173,650

310,650 165.000 10,500 59.000

15,500 95,000 69.100 20.000 82,125 30,900

1,500.276 26.154

206,983 313,132

173,462 47,273 51,850 13,182

118,931

117,589 11,616 91,339 50.544

2,600,475 2,600,475 2,722.331

1,462,756 25.078 148.723 278,148 161,966 7,662

47,099 13,457 78,468 88,604 15.447 83,895 51,830

(121,856) 2,463,133

42,474 146

(33,333) (2,482)

(8,462) (36.773) 7,150 2,318

(23,931) (48,489) 8,384 (9,214)

(19,644)

(continued)

61


Budgetary Compaiison Schedule - Expenditures (Continued) For the Year Ended August 31. 2010

With Comparative Actual Amounts for the Year Ended August 31,2009

2010

Code enforcement: Salaries and wages Payroll taxes Retirement Group insurance General insurance Office expense Telephone and utilities Gas and oil Repairs and supplies Trash clean-up Animal control Miscellaneous

Total code enforcement

Total public safety

Public works -Drainage and public buildings:

Salaries and wages Pa>Toll taxes Retirement Group insurance General insurance Telephone and utilities Professional services Gas and oil Repairs and maintenance Miscellaneous

Total drainage and public buildings

Budget Original

217,800 3,555

29.000 49,815 17.500 4,500 6,750

10,500 16.500 12,000 6,650

23,625

398,195

4,958,980

364,200 5,625

48.250 81.435 33.500 53,100 25,000 20,000 53,500 13,550

698,160

Final

207,800 3,555

29,000 49,815 17,500 4,500 6,750

10,500 16,500 12,000 6.650

23.625

388,195

4,930,480

314,200 5.625

40,750 66,435 33,500 53,100 15,000 20.000 53,500 13,550

615,660

Actual

203,927 3,426

27,003 40,629 17,428 5,946 7,382

12,823 12,457 23,535

5,516 -

360.072

5,011,833

288,474 5.297

36,512 64,733 33,354 44,811 8,576

19.874 44,272 12,282

558.185

Variance with Fmal Budget

Positive (Negative)

3.873 129

1,997 9,186

72 (1.446)

(632) (2,323) 4,043

(11,535) 1,134

23,625

28,123

(81,353)

25.726 328

4,238 1,702

146 8,289 6,424

126 9,228 1,268

57,475

2009 Actual

202.855 3,315

26,496 44,472 16.594 4,527 6.173 8,832

38,661 23,407

7,186 18,240

400.758

4,706,112

298,023 5.584

36,482 55,S6Z 31.825 42,274 49.056 17,265 56.423 12,881

605,681

(continued)

62

CITY OF CRO\VLEY. LOUISIANA General Fund

Budgetary Comparison Schedule - Expenditures (Continued) For the Year Ended August 31, 2010

With Comparative Actual Amounts for the Year Ended August 31,2009

2010

Street department: Salaries and wages Payroll taxes Retirement Group insurance General insurance Gas and oil Repairs and supplies Asphalt, gravel, shell, and sand Street signs and signals Street and traffic lights Rice festival expense Tree expense Mosquito control Contract labor Miscellaneous

Total street depailment

Total public works

Economic development -July-Fete fundraiser Mardi Gras Fundraiser Tourism and promotion

Total economic development

Capital outlay

Debt service -



Total debt service

Total expenditures

Budget Original

455,500 6,920

57,000 105,780 56,000 60.000 83.000 29,000 10,000

210,000 15,000 25.000 36.000 25,000 19,550

1,193,750

1,891,910

30.000 30,000

100,000

160.000

1.500,500

745,033 244,067

989,100

$10,935,170

Final

420,500 6,920

57,000 95,780 56,000 60,000

563,000 29,000 10,000

210,000 37,850 10,000 36.000 5,000

20,125

1.617,175

2.232,835

30,000 38,000

154,000

222.000

1.353,095

706.633 177,967

884,600

511,265,440

Actual

402,059 6,316

52,038 91,948 57,400 48,830

649,384 31,966 26,401

180,975 38,630 3,509

36,246 2,150

16,987

1,644,839

2;203,024

24.492 35,854

136,521

196.867

1.285,136

707,039 174,437

881,476

$11,232,211


Positive (Negative)

18,441 604

4,962 3,832

(1,400) 11,170

(86,384) (2,966)

(16,401) 29,025

(780) 6,491 (246)

2,850 3,138

(27.664)

29,811

5.508 2,146

17,479

25.133

67,959

(406) 3,530

3,124

S 33,229

2009 Actual

412,767 6,272

52,367 95,241 53,983 28,906

140,901 28.407 6,641

203.869 11.622 3,251

29.742 -

20,466

1,094,435

1,700,116

30,542 31,603 99,029

161.174

4,529,416

609,832 214,310

824,142

$13,326,650

63

CITY OF CROWLEY, LOUISIANA Nonmajor Governmental Funds

Combining Balance Sheet August 31, 2010

Special Revenue

Debt Service

Capital Projects Total

ASSETS

Cash and interest-bearing deposits

Investments Receivables:

Accrued interest receivable Due firom other govemmental agencies Other receivables

Total assets

$1,116,166 1,446

1,181 3,510 1,226

$1,123,529

$196,375 -

---

$196,375

$

1-

100 -

---

100

$1,312,641 1,446

1,181 3,510 1,226

$1,320,004


Liabilities: Accounts payable Accrued liabilities Due to other funds

Total liabilities

$ 9,825 15,199

25,024 100

100

9,825 15,199

100

25,124

Fund balances: Reserved for debt service Unreserved, undesignated

Total fund balances 1,098,505

196,375

,098.505 196,375

196,375 1,098,505 1,294,880

Total liabilities and fund balances $1.123,529 $196,375 $ 100 $1,320,004

64

CITY OF CROWLEY, LOUISIANA Nonmajor Govemmental Funds

Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended August 31, 2010

Revenues; Taxes Intergovernmental Charges for services Investment income Miscellaneous

Total revenues

Special

Revenue

$ 315,056

32,969

309,514

13,678

10,391

681,608

Debt

Service

$ -

-

-

6,223 -

6,223

Total

S 315,056

32,969 309,514

19,901

10,391

687,831


General govemment Economic development Culture and recreation Cemetery




Total expenditures

22,781

67,971

1,175,552

48,325

92,163

23,507

11,898

1,442,197

703 -

-

-

-

425,000

72,825

498,528

23,484

67,971

1,175,552

48,325

92,163

448,507

84,723

1,940,725

Deficiency of revenues over expenditures (760,589) (492,305) (1,252,894)

Other financing sources (uses): Transfers in Transfers out

Total financing sources (uses)

932,632 (43,632)

889,000

546,190

(779,607)

(233,417)

1,478,822

(823,239)

655,583

Net changes in fund balances 128,411 (725,722) (597,311)

Fund balance, beginning 970,094 922,097 L892.191

Fund balance, ending S 1,098,505 S 196.375 $ 1,294,880

65

NONMAJOR SPECIAL REVENUE FUNDS

Industrial Inducement Fund The Industrial Inducement fund is a restricted fund to be used for industrial development.

Rice City Civic Center Fund The Rice City Civic Center fund accounts for the receipt and disbursement of funds used in the maintenance and operation of the civic center.

Youth Recreation Operation Fund The Youth Recreation Operation fund accounts for the receipt and disbursement of funds to be used in the daily operations of the youth center.

Youth Recreation Building Maintenance Fund T'he Youth Recreation Building Maintenance fund accounts for the receipt and disbursement of funds received from the sales tax fund to be used for the maintenance of the youth center buildings.

Cemetery Maintenance Fund The Cemetery Maintenance fund accounts for the receipt and disbursement of funds used in the maintenance of the City cemetery.

Cemetery Development Fund The Cemetery Development fund accoimts for the receipt and disbursement of the proceeds from the sale of cemeter>' plots. Proceeds are used for the development and maintenance of the new section of the South Crowley Cemetery.

Motor Vehicle Facility Fund The City owns the facility that is used by the State Motor Vehicle Department. The State reimburses a fee to the City and this fund is to account for the collection and disbursement of those fees. The fees changed from $2.00 per eligible transaction to $3.00 effective July 1, 2003.

Main Street Fund This fund is for operation and management expenses of main street projects.

66

CITY OF CROWLEY, LOUISIANA Nonmajor Special Revenue Funds

Combining Balance Sheet August 31, 2010

Industrial Inducement

Fund

Rice City Ci\'ic

Center Fund

Youth Recreation Operation

Fund

Youth Recreation Building

Maintenance Fund

ASSETS


Accrued interest receivable

Due from other govemmental agencies

Other

Total assets

$538,506

526

$ 15,493 $ 156,216 $ 136,069 458 384

1,226

$539,032 S 15,493 $ 157,900 $ 136.453


Liabihties: Accounts payable Accrued liabilities

Total liabilities

$ 1, 630 328

1,958

4,562 9,293

13,855

2,803 2,707

5,510

Fund balances: Unreserved - undesignated

Total liabilities and fund balance

539,032 13,535 144,045 130,943

$539,032 $ 15,493 $ 157,900 $ 136,453

67

Motor Cemetery Cemetery Vehicle Main

Maintenance Development Facility Street Fund • Fund Fund Fund Total

S 184.780

266

655 -

-

$185,701

$ 10,459

-

-

-

-

$ 10,459

$ 39.479

338

-

3,510

-

$ 43,327

$

L=

35,164

-

_

-

-

35,164

$ 1,116,166

1,446

1,181

3,510

1,226

$ 1,123,529

$ - $ 237 $ 593 $ 9,825

1,444 :___ - 1,427 15,199

1,444 - 237 2,020 25,024

184,257 10,459 43,090 33,144 1,098,505

$185,701 $ 10,459 $ 43,327 $ 35,164 $ 1.123,529

68

CITY OF CROWLEY, LOUISIANA Nonmajor Special Revenue Funds

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended August 31,2010

Revenues: Taxes Intergovernmental Charges for services Investment income Miscellaneous

Total revenues

Industrial Inducement

Fund

$ ---

10,416 -

10,416

Rice City Civic

Center Fund

$ --

15,477 --

15,477

Youtli Recreation

• Operation Fund

S 198.972 10.814

221.742 304

4,209

436,041

Youth Recreation Building

Maintenance Fund

S 66,324 19,655

-518

-

86,497


General government Economic development Culture and recreation Cemetery

Capital outlay Debt Service -


Interest and other fiscal charges

Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources (uses): Transfers in

Transfers out

Total financing sources (uses)

Net changes in fund balances

Fund balances, beginning

Fund balances, ending

"

-

-

-

-

-

J ^

78,186

-

3,282

1,661

83,161

"

882,714

10,655

15,074

7,630

916,073

"

214,652

81,508

5,151

2,607

303,918

10.416 (67,684) (480,032) (217,421)

-_

10,416

528.616

$539,032

80,000 -

80,000

12,316

1.219

S 13,535

549,500

(5,132)

544,368

64,336

79,709

$ 144,045

247,382 -

247,382

29,961

100,982

$ 130,943

69

Motor Cemetery Cemetery Vehicle Main

Maintenance Development Facility Street Fund Fund Fund Fund Total

$ 49,760 --

2,179 -

51,939

$ -

2,800 --

2,800

$

-

-69,495

261 -

69,756

S 2.500 --

6,182

8.682

$

~

315,056 32.969

309,514 13,678 10,391

681.608

---

48,078 -

-

-

48,078

3,861

-

-

3,861

180,396

$184,257

---247

-

-

-

247

2,553

-

_

2,553

7,906

$ 10,459

22.749 1.101 ---

-

-

23,850

45,906

(38,500)

(38,500)

7,406

35,684

$ 43,090 3

-66,870

---

-

-

66,870

(58,188)

55,750 -

55.750

(2,438)

35,582

; 33,144

22,781 67,971

1,175,552 48,325 92,163

23.507

11.898

1.442.197

(760,589)

932,632

(43,632)

889,000

128,411

970,094

$ 1,098,505

70

NONMAJOR DEBT SERVICE FUND

1997 Street Improvement Sales Tax Bond Sinking Fund

To accumulate monies for payment of the $4,830,000 Refunding Certificates of Indebtedness, Series 1997A. Debt service is financed by transfers from the Sales Tax Fund.

71

CITY OF CROWLEY, LOUISIANA Nonmajor Debt Service Fund


Balance Sheet August 31,2010

ASSETS

Cash and interest-bearing deposits $ 196,375

LIABILITIES AND FUND BALANCE

Liabilities $

Fund balance: Reserved for debt service 196,375

Total liabilities and fund balance $ 196,375

72

CITY OF CROWLEY, LOUISIANA Nonmajor Debt Service Fund


Statement of Revenues, Expenditures and Changes in Fund Balance For the Year Ended August 31,2010

Revenues: Interest on investments $ 6,223


General government Debt service -

Principal retirement Interest and fiscal charges

Total expenditures

703

425,000 72,825

498,528

Deficiency of revenues over expenditures (492,305)

Other financing sources (uses):

Transfers in

Transfers out


546,190

(779,607)

(233,417)



(725,722)

922,097

Fund balance, ending $196,375

73

NONMAJOR CAPITAL PROJECTS FUND

LCDBG Sewer Improvement Fund

To account for sewer improvements within the City. Improvements are funded by federal gi-ants.

74

CITY OF CROWLEY, LOUISIANA Nonmajor Capital Projects Fund

LCDBG Sewer Improvement Fund

Balance Sheet August 31, 2010

ASSETS

Cash and interest-bearing deposits $ 100

LIABILITIES AND FUND BALANCE

Liabilities: Due to other funds $ 100

Fund balance: Unreserved, undesignated -

Total liabilities and fund balance $ 100

75

INTERNAL SERVICE FUNDS

Worlcman's Compensation Fund

To account for the accumulation of funds designated for payment of liability insurance premiums, costs of the risk management department, and satisfaction of claims made against the City.

Employee Benefit Plan Fund

To account for the accumulation of funds from self-insurance sources and from employees. Funds are also dedicated to the payment of health insurance premiums, and the satisfaction of health care claims incurred by employees and their dependents.

76

ASSETS

CITY OF CROWLEY, LOUISIANA Internal Service Funds

Combining Statement of Net Assets

August 31, 2010

Employee Workman's Benefit

Compensation Plan Fund Fund Total

Current assets: Cash and interest-bearing deposits Accrued interest receivable

Total assets

$320,525 $311,380 $631,905 1,162 - 1,162

321,687 311,380 633,067

LIABILrriES

Current liabilities; Claims payable 36,531 100,084 136,615

NET ASSETS

Unrestricted $285,156 $211,296 $496,452

77

CITY OF CROWLEY, LOUISL\NA Internal Sei-vice Funds

Combining Statement of Revenues, Expenses and Changes in Fund Net Assets For the Y'ear Ended August 31, 2010

Operating revenues: Charges for services Miscellaneous

Total operating revenues

Operating expenses: Insurance premiums Claims Loss time

Professional services Miscellaneous

Total operating expenses

Workman's Compensation

Fund

S 286,697 -

286,697

59.908 153,027

34,253 47,684

176

295,048

Employee

Health Insurance

Fund

$ 882,255 24,440

906,695

168,810 879,765

-2,363

66,210

1,117,148

Total

$ 1,168,952 24,440

1,193,392

228,718 1,032,792

34,253 50,047 66,386

1,412.196

Operating loss

Nonoperating revenues: Investment income

(8,351)

3,649

(210,453)

1.554

(218,804)

5,203

Change in net assets

Net assets, begiraiing

Net assets, ending

(4,702) (208.899) (213,601)

289,858 420,195 710,053

$ 285,156 S 211,296 $ 496,452

78

CITY OF CROWLEY. LOUISIANA Internal Service Funds

Combining Statement of Cash Flows

For the Year Ended Augusi 31, 2010

Cash flows from operating activities: Receipts fron; insured Receipts from interfund services provided Payments to suppliers Payments for claims and loss lime Other receipts

Net cash used by operating activities

Cash flows from investing activities;

Purchase of Interest-bearing deposits with maturity

in excess of ninety days

Proceeds of interest-bearing deposits with maturity

in excess of ninety days

Investment income

Net cash provided by investing activities

Net decrease in cash and cash equivalents

Cash and cash equivalents, beginning

Cash and cash equivalents, ending

Reconciliation of operating loss to net cash used by operating activities: Operating loss

Adjustments to reconcile operating lo,ss to net cash (used) provided by operating activities -Changes in current assets and liabilities

Decrease in accounts payable (Decrease) increase in claims payable

Net cash used by operating activities

Reconciliation of cash and cash equivalents per statement

of cash flows to the balance sheet:

Cash and cash equivalents, beginning of period -

Cash and interest-bearing deposits - unrcslricled

Less: Interest-bearing deposits with maturity



Cash and cash equivalents, end of period -

Cash and interest-bearing deposits - unrestricted

Less: Interest-beaj'ing deposits with maturity



Net decrease

Workman's Compensation

Fund

S 281,950

(108,323)

(197,786) 4,747

(19,412)

Employee

Benefit Plan

Fund

$ 111.497 $ 770,759

(238,210)

(831,807) 24,440

(163,321)

Total

111,497

1.052.709 (346.533)

(1.029,593) 29,187

(182,733)

(227,675)

224,459

3,760

544

(18,868)

U!,7I8

S 92,850

(555) (10,506)

S 336,177

(224.459)

111,718

320,525

(227,675)

92.850

1,554

1,554

(161,767)

473,147

(827) 47.959

473,147 S

473,147

311,380

31L380

(227,675)

224,459

5.314

2,098

(180,635)

584,865

311,380 $ 404.230

$ (8,351) $ (210,453) $ (218,804)

37.453

S (19,412) $ (163.321) $ (181,351)

809,324

(224,459)

631,905

(227,675)

404.230

$ (18,868) S (161,767) S (180,635)

79

INTERNAL CONTROL,

COMPLIANCE,

AND

OTHER MATTERS

SO

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC L' r?.?;?;pS.«.cPA- CERTIFIED PUBUG ACCOUNTANTS Vicior R. Slaven. CPA' OFF ICES P Troy Coiin-'iile. CPA* Gerald A. rtiiboceaux.^Jr.,CPA' , (,3 53 , ^ gp-j^jif. RJ 4=0 pgg, ^3,^ si^gg, Robert S. Cafler, CPA' Latayetie. LA /050a Hew bsria. LA 70550 Ar(h-jfR. Mixon, CPA' p^one p37j 232-1141 PTionfi <337> 367-9204

Fax (337) 232-8550 Fax (33') 367-920B Ty.ies E. Mixon. J'., CPA Alien J. LaBry. CPA -,13 £35, gn jge gj. 200 Souih Wain Sireef Aloerl R. Lcoer. CPA.PfS.uSA* Bfeaux Bridge. LA 70517 Abbeville. LA 70510 Penr.y Angelle Scruggms. CPA p^pne (337) 332-'i02C Phcne (537) 893-7944 Chrisimt; L. Coiisin, CPA Pax f337) 332-2867 Fax (537) 893-7946 h*3ry T. Ttiibcdea'j.n, CPA F/arsnall W. Guidry. CPA 1234 David Df. Sie 203 1013 Main Street Alan M. Taylor. CPA Morgan Cily, LA 70330 FrsnKNn. LA 70530 Jarnes R. Koy. CFV\ Pf,gpg -gggj 33^.2020 Pfionc (33?; 325-0272 R'.il>P(l J. Mslz, CPA Pa^ (gggj ( .1,3020 Fax (337) 826-0290 KellyM. Doucci .CPA Cheryl L. Baniey, CPA 4, 3 . ves; Coiion SIreet 133 Cost Waddil St. Wardy B. Sesf. CPA y^lg p,3,,g_ , ^ - Q gg Warksville LA 71351 Pay; L. Oeicarrbrt:. J.-. CPA pi,^,,^ ^ j j ^ j 363-2792 Phone (318) 253-9252 Wantla F. Arcemsnl, CPA, CVA Fg^ 337,353-3049 Fox (318) 253-6631 Kristin G. Oauzat. CPA Richard R. .Anderson Sr. CPA 332 west Sixl?i Avenue 621 Wain Strce! Carolyn C. Anderson. CPA Oberlin. LA 70555 PinevjJIe, LA 71360

Phone (337} 639-'1737 Phone (318) •142-/iJ21 Fax (337) 633-4668 Fax (318) 442-9833 Rclired:

Conrad 0, Chapman. CPA* 2005 Harry J. Closlio. CPA 2007 ,^^=0 giyg

~ ~ ~ WWW.KCSRCPAS.COM • A Pfo(M5«rai /www.iing Co(p(»a:n;pi

MPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING ANl") ON COMPLIANCE AND OTl-IER .MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED TN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The Honorable Greg A- Jones, Mayor and Members of the City Council City of Crowley, Louisiana

We haye audited the accompanying financial statements of the govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Crowley, Louisiana, as of and for the year ended August 31, 2010, which collectively comprise the City's basic financial statements and have issued our report thereon dated January 14, 20n. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fmancial audits contained in Govemment Auditing Standards, issued by the Comptroller General of the United States-

Intemal Control Over Financial Reporting

In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for tlie puipose of expressing an opinion on the effectiveness of the City's internal conliol over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting.

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, m 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.

Member of: Member of: AMEZRfCAN INSTITUTE Or „ . SOCIETY Of LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS O i CtRTIrlED PUBLIC ACCOUNTANTS

http://WWW.KCSRCPAS.COM

http://www.iing

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material wealoiesses, as defined above. However, we identified certain deficiencies in internal control over financial reporting, described in the accompanying summary schedule of current and prior year audit findings and management's corrective action plan as item lO-l(IC) to be a significant deficiency in internal control over financial reporting. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material v 'eakness, yet important enough to merit attenfion by those charged with governance.

Comphance 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, providmg 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 instances of noncompliance or other matters that are required to be reported under Govemment Auditing Standards and which are described in the accompanying summary schedule of current and prior year audit findings and management's corrective action plan as items 10-2(C), 10-3(C), and 10-4(C).

The City of Crowley's response to the findings identified in our audit is described m the accompanying summaiy schedule of current and prior year audit findings and management's corrective action plan. We did not audit the City*s response and, accordingly, we express no opinion on it.

This report is intended solely for the information and use of the Mayor, the City Council, the City's management, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. However, under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.

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

Abbeville, Louisiana January 14,2011

82

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC R.SF.SlSpas"'^; CPA- CERTIFIED PUBLIC ACCOUNTANTS Victof R. Siaven. CPA" OFF ICES P. Troy Coufvijle. CPA* Gerald A. Thibodeaux. Jr..CPA- ,93 gp^h Qg . \ j ^ ^ ^CQ ^^^^ âjn street Robert S. Carter, CPA* Lafayslte. LA 70508 Maw Ibpria. LA 70560 A'lhurR. M:xop, CPA' Pho.-i© (337) 232-4141 Ptione (337) 567-9204

Fax (337) 232-5550 Fax (i37) 567-9208 Tynes E. Mlxon, Jr.. CPA Alien J. LaBry. CPA 1,3 ^^î g j igg g, 200 South Main Street ASUort R. Logor. CPA.PFS.CS.A- Bro jux Brldgu, LA70517 Atbt-ville. LA70510 Penny Argclle Scruggms, CPA p ^ ne (337) 332-4020 Phone (337} 093-7944 Christine L Ccusin, CPA p. ^ j337j jss-aee? Fax f337) 893-7945 Mtiry T. Thihodoaux. C. A MDrshcli W. Gyldry. CPA ^234 David Dr. Ste 203 1013 Main Street Alan P.r Taylor. CPA Mtigan City. LA 703SO FrartOin, LA 70538 Jcrr.es R. Roy, Ci A Phgn^ gsj 334.202O Phone (337) 828-0272 Robsri J. Mets. CPA Pa,. ggg. 38.4,3020 Fax (337) 828-0230 Kelly M. Doucol, CPA ' Cheryl L. Banley. CPA d^g ^ , 5, Action Street 133 East Waddil Si Mandy B. Self. CPA ViKe pj^tig (_ ôggg Marksville LA 71351 Peul L. Dolcambrc. Jr. CPA pônj. .,337^ 363-2792 Phone (318) 253-9252 VVanfla F. Arcenier.t, CPA, CVA Pax [337) 363-30-19 Fax (316) 253-8631 JCibtin B. Dauzat. CPA Richard R. Anderson Sr. CPA 332 v ,B5, gj^-h Avenue 621 Main Street Carolyn C. Anderson. CPA Oberlin, LA 70655 PinevNie. LA 71360

Phone (337) 639-4737 Phone (318) •142^421 f*< *' '=''- Fax (337) 639-4568 Fax (31-3) -s^-gSSS Conrad 0. Chapnan. CPA" 2006 _ , Harry J. Clostio. CPA 2007 ^.^^^ g|-j-^

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INDEPENDEiNT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON

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

The Honorable Greg A. Jones, Mayor and Members of tlie City Council City of Crowley, Louisiana

Compliance

We have auiiited City of Crowley's compliance with the types of compliance requirements described in the COMB') Circular A-133 Compliance Supplement tliat could have a direct and material effect on the City of Crowley's major federal program for the year ended August 31, 2010. The City's major federal program is identified in the summary of auditor's results section of tlie accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is tlie responsibility of the Cit>''s management. Our responsibility is to express an opinion on the City's compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States. Local Governments and Non-Profit Oiânizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessaiy in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our auiJit does not provide a legal determination of the City's compliance with those requirements.

Member of: Member of: AMERICAN inSTITUTEOF _ ^ SOCIETY OF LOUISIANA CtRTiFIED PUBLIC ACCOUNTANTS OJ> CERTIFIED PUBLIC ACCOUNTANTS

http://KCSRCPAS.COM

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended August 31,2010.

Internal Control Over Compliance

Management of the City is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal progi'ams. In planning and perfoiTning our audit, we considered the Cit>'''s internal control over compliance with requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance.

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

Our consideration of the internal conti'ol over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above.

This report is intended solely for the information and use of the Mayor, the City Council, the City's management, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. However, under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.

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

Abbeville, Louisiana January 14,2011

84

CITY OF CROWLEY, LOUISL\NA

Schedule of Expenditures of Federal Awards For the Year Ended A ugust 31,2010

Federal Grantor/Pass-Through Grantor/Program Name

U.S. Department of Justice: Passed tlu'ough the Louisiana Commission on Law

Enforcemcnt'Evangeline Law Enforcement Council Edward Bynie Memonal Justice Assistance

Grant Program Information System Upgrade Information System Upgrade FY 2007 Equipment

Total Edward Byrne Memorial Justice

Assistance Grant Program

U.S. Department of Transportation: Passed through the State Department of

Transportation -Highway Planning and Construction (Federal

Aid Highway Program) Highway Planning and Construction (Federal

Aid Higliway Program) Total Highway Planning and Construction

Alcohol Open Container Requirements

Total Department of Transportation

Environmental Protection Agency:

Passed through the State Department of

Environmental Quality -

Capitalization Grants for Clean Water State

Revolving Funds

Sewer Revenue Bonds, Series 2009 *

U.S. Department of Homeland Security: Passed through State of Louisiana, Military

Department, Office of Homeland Security and Emergency Preparedness -

Disaster Grants - Public Assistance (iVcsidentiaJly Declared Disasters)

Total

CFDA Number

20.607

66.458

97.036

Pass -Tlirough

Identifying No.

20.205 DEMO-TCSP-0102(508)

20.205 ENH-0102(508)

737-01-0106

N/A

N/A

Expenditures

16.738 16.738 16.738

B08-4-024E02 B08-4-024E04

2007-GE-T7-0019

S 5,n4 568

14,320

20.002

222,860

198,337

421,197

16,663

437,860

,000,000

40,631

S 1,498,493

* Denotes major program.

85

City of Crowley Crowley, Louisiana

Notes to Schedule of Expenditures of Federal Awards For the Y'ear Ended August 31, 2010

(1) General

The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Crowley. The City reporting entity is defined in Note 1 to the basic financial statements for the year ended August 31, 2010. All federal financial assistance received directly from federal agencies is included on the schedule as well as federal financial assistance passed through other government agencies. The following program is considered a major federal program of the City: Capitalization Grants for Clean Water State Revolving Funds -Sewer Revenue Bonds, Series 2009.

(2) Basis of Accounting

The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the City's basic financial statements for the year ended August 31, 2010.

86


Schedule of Findings and Questioned Costs For the Year Ended August 31,2010

Part L Summarv of Auditor's Results:

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

2. One significant deficiency disclosed during the audit of the basic financial statements is reported in the accompanying schedule of cuirent and prior year audit findings and management's corrective action plan. The significant deficiency noted is not considered to be a material wealcness.

3. There were three material instances of noncompUance.

4. No significant deficiencies in internal control over the major program were disclosed by the audit of the basic financial statements.

5. An unqualified opinion was issued on compliance for the major program.

6. The audit disclosed no findings required to be reported under Section 510(a) of Circular A-133.

7. The following program was considered to be a major program:

Environmental Protection Agency passed through the State Department of Environmental Quality: Capitalization Grants for Clean Water State Revolving Funds - Sewer Revenue Bonds, Series 2009, CFDA 66.458.

8. The dollar threshold used to distinguish between Type A. and Type B programs, as described in Secfion 520(b) of Circular A-133 was $300,000.

9. The auditee did not qualify as a low-risk auditee under Section 530 of Circular A-133.

Part II. Findings which are required to be reported in accordance with generallv accepted Govemmental Auditing Standards:

A. Internal Control Findings -

See internal control finding lO-l(lC) on the accompanying schedule of current and prior year audit findings and management's corrective action plan.


Schedule of Findings and Questioned Costs (Continued) For the Year Ended August 31, 2010

B. Compliance Findings -

See compliance findings 10-2(C), 10-3(C), and 10-4(C) on the accompanying schedule of current and prior year audit findings and management's corrective action plan.

C. Other Matters ~

There were no other matters required to be reported.

Part m. Findings and questioned costs for Federal awards which include audit findings as defined in Section 5]0(a) of Circular A-133:

There are no findings and questioned costs related to federal programs.

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