financial statements of theapp1.lla.la.gov/publicreports.nsf/c7ff9d45a889e...that report is an audit...

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FINANCIAL STATEMENTS OF THE JEFFERSON DAVIS PARISH MOSQUITO

ABATEMENT DISTRICT (A Component Unit of the

Jefferson Davis Parish Police Jury)

JENNINGS^ LOUISIANA

AS OF DECEMBER 31,2012

Richard Builer CPA Services, LLC 742 East Plaquemine Street

Post Office Drawer 1429 Jennings, Louisiana 70546

Under provisions of state lav . 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 appropnate at the office of the parish clerl^of court

Release Date SEP Q 4 2013

JEFFERSON DAVIS PARISH MOSQUITO ABATEMENT DISTRICT

Jennings, Louisiana

TABLE OF CONTENTS

INDLPENDLNI AUOI'IORS* RLPORI 1-2

HASIC IINANCIALSTATEMhNIS GOVF:RNMbNT-WIDL FINANCIAL S FA i FMIINTS (OWI-S) 3

Staieincni of Net Posilion 4 Statement of Activities 5

I UND riNANCIAL STATRMFNTS 6 Baldiiee Sheet - Governmental Funds 7 Reconciliation ot Governmental Fund Balance Sheet to the Statement of Net Position 8 Statement of Revenues, Expenditures and Changes in Fund Balances - Govemnienial Funds 9 Reconciliation of the Statement of Revenues Kxpendilurcs, and Changes in Fund balances -Governmental Funds 10

Notes to the Financial Statements 11-18

REOUIRF:i)SUPPLtMENrARY INFORMATION ]9 General Fund

Budgetary Compdrison Schedule 20

RLQUIRLD BY GOVLRNMbNl AUDITING STANDARDS 21 COMPLIANCH AND INTFRNAL CONTROL 22

Independent Auditor s Report on Internal Controls Over Financial Reporting and on Compliance and Other Matter Based on an Audit of Financial Stalcinenls Periormcd And Other Matters Based on an Audit of Financial Statements Perionncd in Accordance with Government Auditint; Standards 23 - 24

Schedule of Findings and Responses 25

Schedule ot Prior Year I indin^s 26

: «9BCi A s iav i c i sav

INDEPENDENT AUDm)R*S REPORT

Board of Commissioners Jefferson Davis Parish Mosquito Abatement District Jennmgs, Louisiana

Gentlemen: We have audited the accompanying financial statements of the governmental activities and the major fund of the Jefferson Davis Parish Mosquito Abatement District a component unit of the Jefferson Davis Parish Police Jury, as of and for the year ended December 31,2012, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed m the table of contents.

Managemeitt's Responsilnlity for the financial Statements

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

Auditor's Rcsponsitrflity

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accqited in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtam audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, indudmg the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error In making those rt&k assessments, the auditor considers internal control relevant to the entity*s preparation and fair presentation of the financial statements in order to d e s ^ audit procedures that are appropriate in the circumstances, but not for the purpose of expressmg an opmion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by maruigement, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit (^in ton

Optnloos

In our opinion, the financial statements referred to above present &irly, in all material respects, the respective Hnancial position of the governmental activities, and the major fund, and the aggregate remaining fund information of the Jefferson Davis Parish Mosquito Abatement District as of

December 31,2012^ and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

In accordance with Governmental Auditing Standards, we have also issued a report dated May 16, 2013, on our oonsideraiion of the Jefferson Davis Parish Mosquito Abatement District's internal control over Hnancial reporting and on our tests of its compUance with certain provisions of law, regulations, contract,, arid grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal oonurol over Hnancial 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 audit in accordance with Government Auditing Standards and should be considered in assessing the results of our audiL

Accounting prindples generaUy accepted in the United States of America require that budgetary comparison information on page 18 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essentia) part of financial reportmg for placing the basic financial statements m an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the Umted States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic 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

Management has not presented Management's Discussion and Analysis that governmental accounting principles generally accepted m the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic finanaal statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placmg the basic financial statements m an appropriate operational^ economic, or historical context. Our opinion on the basic Hnancial statements is not affected by this missing information.

Richard Bii May 16,2013

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS)


Statement of Net Position As of December 31,2012

Governnienial Activities

Assets: Cash and Cash Equivalents Receivables - Ad Valorem Taxes, Net of Allowance Property, Plant and Equipment, net

TOTAL ASSETS

1363,515 1,276,881 1,015,846

4 , 1 5 6 ; M 2

Liabilities: Accounts Payable Trade Retirement Payable Payroll Deductions Payable Salaries & Wages Payable Accrued Compensated Absences

Total Liabilities

Net Posirion Investment In Capital Assets, net of related debt Restricted

Total Net Position

The accompanying notes are an int^ral part of the financial statements 4

712 37,805 2,645 14,995 12,619

68.775

1,003,227 3,084,240

4,087,467


Statement of Activities As of December 31,2012

EXPENSES General Office and Administrative Surveillance Control and Equipmeat Maintenance Current Book Deprecl&ttoa

Total Expenses

GENERAL REVENUES Ad Valorem Taxes Penalties and Interest on Taxes Interest Income Corp Grant • FEMA Reimbursement Proceeds from Disposed Assets

Total Revenues

Change in net position

Net Position, Beginaingof Year

Net Position, End of Year

The accompanying notes are an Integral part of the flr^andal statements 5

354,915 263,992 811,286

73359

1,504,052

1,683,627 4,613

45,766 1,842

1.735349

231,797

3355,670

4X)87.467

FUND FINANCIAL STATEMENTS (FFS)


Balartce Sheet • Govemnwntel Funds As of December 31,2012

ASSETS AND OTHER DEBITS

Cash and cash equivalents Receivables * Ad Valorem Taxes Net Rxed Assets

Total Assets

$ 1,863,515 1.276,882 1.015,846 4.156.243

TOTAL ASSETS AND OTHER DEBITS 4.156,243

LIABILITIES AND FUND BALANCE Liabilities:

Accounts Payable Trade Retirement Payable Payroll Deductions Payable Salaries & Wages Payable

712 37.805 15,264 14,995

Total Uabilittes 68.776

Fund Balance Nonspendable - Investments in Fixed Assets Restricted For Jefferson Davis Mosquito Abatement

Total Fund Balance

TOTAL LlABlLITiES AND FUND BALANCE

1.003,227 3,084,240

4.087.467

$ 4.156,243

he accompanying notes are an integral part of the financial statements 7


RWffnffflBtftm frf <jOf r«Tw*«*pl tIttnA n«limr» »»#< To Il»e Statement of Net Portion

AsofDecenaberaL2012

Total fund tialanoe fbrgpveninienial funds at I>ccenil»er 31,2012

T»tal net position leponed (or ggvernmeotal aaivlttes in the staKmeoi of ne4 position ts different l)ecause'

Capital assets used in govemmtatal activities are not financial resources and, thertfom, are not repofled in the funds. Tbose asseb consist of

Buildings, net of 290,8 ISacoumutated depreciation Aiicfafi,ae(of 38,402 aoonBubeaddeprectaiion Equipment, net of 222,814 aocumulated depredation Riraimre, net of 20,382 accumulated deprectaiioa TtaDsportatuN) Equipment, net of 88647 accumulated depieciation

Long leim liabilities, am mt due and payable in the cuncnt period and ihetefore aie not reported as lidnliiies in the funds:

Aocnied oompeDsated absences

Net position at December 31,2012

3,084,240

210386 322,787 206,321

7,944 268.408 14)15346

il2,6ia

Ths oxxHTipenying notes ere an irttegral pari of the flnonolal atatemonts


Statement of Revenue, Expendllures, And Changes In Fund Balances - Governmental Funds

GENERAL REVENUES Ad Vatorem TsDces Penalties and Interest on Taxes Interest Income

Total Revenues

EXPENDITURES Qeneral Office and Admlnistvative Surveltlanoe

Control and Equipment Matntenanoe

Total Expenditures

OTHER FINANCINQ SOURCES Corp Grant * FEMA Rtf mtnirsement Proceeds From Disposal of Assets

Total Other Rnancing Sources

Total Finandng Sources

{ xcess (Deflctency) of Revenues and Other F inanctng Sources Over Expenditures

F und Balance* Beginning of Year

F und Balance, End of Year

1,683,627 4,613

45.766

1,734,006

354.915 263,992

73,859 611.286

1.504.052

1,842 28,400

30.242

1.764.248

260.197

2.824.044

$ 3.084.240

he accompanying notes are an integral part of the financial statamems 9


ReoocKfliofitiii of the Statcmoit of Revenues, Expenditures, And Fund Balanoefl - Governmental F^mds

YEAR ENDED DECEMBER 31.2012

Tout net changes in fund balance for the year ended Elecember 31,2012 per statemeni of Revenues, Expenditures and changes in Fund Balance S 260.197

Some expenses reported In the stateraent of activittes do not require die use of cunent financial resources and ere not tqimted as expendiUires in ^vernmenial funds

Goveimneot funds tepcRt capUal outlays as expenditures. However, in die statement of activities, die cost of dtose assets is allocated over their estiniated usefkil lives and reported as depteciatKMi expense. (28,400)

Change in net position at December 31.2012 per Statement of Aciiviiies S 231,797

The aooompanylno notes we an mtegrat part of the finanotai aiatemofits 10


Jennings, Louisiana

NOTES TO THE HNANOAL STATEMENTS December 31,2012

1. SUMMARY OF SIGNIFICANT ACCOUNTING P O L i a E S AND NATURE OF OPERATIONS

A Nature of Opftfation The Jefferson Davis Farish Mosquito Abatement District was created by the Jefferson Davis Parish Police Jury under the authority provided by the provisions of Part 1, Chapter 7, of the Louisiana Revised Statutes of 1950, as amended and other constitutionai and statutory authonty supplemental thereto. Jefferson Davis Parish Mosquito Abatement Dtstnct was created for the purpose of providing abatement, control, eradication, and study of mosquitoes and other arthropods of public health importance and all activities incidental thereto. Operations of the District are administered through (he district director and mdudes the use of chemical pestlades, the application of which is accomplished throu£}i the use of aircraft and other motorized vehicles in populated areas. The district operates within Jefferson Davis Parish and is financed ptmarily through ad valorem taxes.

B. Reporting Entity GASB Codification Section 21 established cnteria for determining the governmental reporting entity of component units that should be included within the reporting entity. Oversight responsibility by the police jury is determined on the basis of the following criteria:

1. Financial Accountability 2. Appointment of a Voting Majority 3. Imposition of Will 4. Financial Benefit to or Burden on a Primary Government 5. Financial Accotmtability as a result of Fiscal Dependency

Because the police jury has financial accountability and they appointed a voting majority of the board of commissioners, Jefferson Davis Parish Mosquito Abatement District was determined to be a component unit of the Jefferson Davis Parish PoEce Jury, the governing body of the parish and the governmental body with oversight responsibihty. The accompanying general purpose financial siatements present information only on the funds mamtained t>y the district and do not present infonnaiion on the police Jury, the general governmental services provided by that governmental unit, or the governmental units that comprise the governmental reporting entity.

C Basis of Presentation The accompanying basic financial statements of the District have been prepared in conformity with governmental accounting principles generally accepted in the United States of America. The Governmental AocDuntiiig Standards Board (GASB) is the accepted standard-setting body for establishmg governmental accounting and financial reporbng pnnaples. The accompanying basic financial statements have been prepared in Conformity with GASB Statement 34, **Basic Finandal Statements-and Management's Discussion and Analysis for State and Local Oovernments'*, issued in June 1999.

11


Jennings, l/)uisiana

NOTES TO THE FINANQAL STATEMENTS December 31,2012

Govemmem-Wide Financial Statements (GWFS)

The Statement of Net Position and the Statement of Acttviaes display information about the District as a whole. These statements include all the financial activities of the District Information contained in these statements reflects the economic resources measurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange or exctiange-likc transactions are recognized when the exchange occurs (regardless of when cash is received or disbursed). Revenues, expenses, gains, losses, assets and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33, "Accounting and Financial Reporting tor Nonexchange Transactions.

Fund Financial Statements (FFS)

The District uses funds to maintain its finanaal records during the year. Fkind accounting is designed to denK)nstrate legal oompUance and to aid managemem by segregating transactions related to certain District functions and activities. A fund is defined as a separate fiscal and acooimting entity with a self-balancing set of accounts. Various funds are classified into two categories: governmental and fiduciary The emphasis on fiind financial statements is on mtiior funds, each displayed in a separate column. A fund is considered major if it 15 the primary operating fund of the District or its total assets, h'abilities, revenues, or expenditures of the individual governmental fund is at least 10% of the corresponding total for all governmental funds. The funds of the district are described below:

Govemmenial Funds-

General Fund The General Fiind is the general accounting bind of the mosquito abatement district It accounts for all financial resources, except for those required to be accounted for in other funds.

D. 3aaso]fAfflounH'iitg The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental fund types are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases and decreases in ttet current assets

The modified accrual basis of accounting is used by all governmental fond types. Under the modified accrual basis of accounting, revenues are recognized when they become both measurable and available. Measurable means that the amount of the transaction is collectable within ihe current period or soon enough thereafter to be used to pay liabilities of the current period. A one-year availabihty period is used for revenue recognition for all governmental fund type revenues. Expendimres are recorded when the related fund liability is incurred. Principal and interest on long-term debt are recorded as a fund liability when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year

I. fifflsnusS Ad valorem taxes are recorded in the year the taxes are assessed Ad valorem taxes are assessed for the calendar year, become due on November 15th of each year, and become delinquent on December 31si. The taxes are generally collected in December of the current year and January and February of the following year, interest income represents amounts earned on certificates of deposits, repurchase

12

JEFFERSON DAVIS PARISH MOSQUrTO ABATEMENT DISTTRICT

Jennmgs, Louisiana

NOTES TO THE FINANaAL STATEMENTS December 31.2012

agreements and insured money market accounts invested with financial institutions. Interest earned on certificates of deposit is recorded when the certificate matures and the mteiest is available. Interest earned on insured money market accounts and repurchase agreements is recorded when received. Intergovernmental revenue is recorded when received.

2. Egpenditmcs Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and mterest on general long-term debt, which are recognized when due.

3. Other Financing Sources fUses^ Trantfers between funds that are not expected to be repaid and proceeds from the sale of bonds are accounted for as other financing sources (uses) and are recognized when the underlying events occur.

E. Budget Practices Formal budgetary accounting is not employed as part of the accounting system; however, an encumbrance ledger is used for budget comparisons for management control An annual operating budget is adopted each year through the passage of an annual budget and amended as required for the general fund and the same basis of accounting is used to reflect actual revenues and expenditures/expenses recognized on a generally accepted accounting principles basis. Furthermore, the Jefferson Davis Parish Mosquito Abatement District also employs procedures in estabhshing the budgetary data reflected in these general purpose financial statements as follows:

1. A summary of the total proposed budget is published and the public notified that the proposed budget is avaikible foir public inspection. After publication and public hearing the budget is adopted.

2* All appropnauons lapse at year-end

3. The annual budget for the geiteral fund is prepared in accordance with the basis of accounting utilized by that fimd.

Budgeted amounts included m the accompanyii^ general purpose financial statements include any amended budget amounts. The 2013 budget was adopted on December 20,2012, and is in compliance with Act 186 of 1984.

F. Cash and Cash Equivalents For reporting purposes, c a ^ and cash equivalents include demand accounts and repurchase agreements. Under state law, the Jefferson Davis Mosquito Abatement District may deposit funds within a fiscal agent bank organized under the laws of the United States, or under the laws of the State of Louisiana, or any other stale in the union. Further, the district may invest in time deposits or certificates of deposit of slate banks oiganized under Louisiana Law and nati(HiaI banks having principle offices in Louisiana, or in obligations guaranteed by the federal government.

The Jefferson Davis Pansh Mosquito Abatement District had cash and cash equivalents totaling $ 1,863^15 at December 31,2012.

13


Jennii^gs, Louisiana

NOTES TO THE FINANQAL STATEMENTS December 31,2012

Custodial Risk at December 31.2012 was as foUows:

Deposits insured by the FDIC or FSLIC $ 49136S

Deposits and repurchase agreements which are uninsured and unregistered, with pledged securities held by counterparty, not in Districts name 1372,150

G. Receivables . .^ . • All leceivabfes are reported at Oieir net values, which is the gross receivable less the estimated portion that is expected to be uncollectible.

H. Fixed Assets Capital assets acqwied or constructed for general governmental operations are recorded as expenditures in the fund financial slatemenis and are capitalized and depredated over time m the government-wide financial statements.

I. Fund Eouitv In the govcmment-wide statements, equity is classified as net assets and displayed in three components:

1. Invested in capital assets, net of related debt - consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstandmg balances of any bonds, mortgages, notes, or other bonowii^ that arc allribuiablc, to the acquisition, construction, or improvement of those

2. Restricted net posilion - consist of restricted assets with constraints placed on the use either by (1) external groups such as ciediiors, grantors, contributors, or laws or regulations of other governments; « (2) law through constitutional provisions or enabling legislation.

3. Unrestricted net posilion - all other net assets that do not meet the definition of *'reslncied" or **inve8ted in capital assets, net of related debt

In the fond statements, ©wemmcnlal fund equity is classified as fimd balance. FUnd balance is forther classified as follows:

The mosquito district adopted GASB Statement No. 54for the year ended December 31,2012. As such, fond balances of the governmental fons are classified as follows:

1. Nonspendable: amounts that cannot be spent either because they arc in nonspcnable form or because they are legally or contractually required to l>e maintained intact.

2. Restricted: amounts that can be spent for specific purposes because of constitutionai provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulation of other goverrunents

14

JEFFERSON DAVIS PARISH MOSQUfTO ABATEMENT DISTRICT

Jeimings, Louisiana

NOTES TO THE FINANCIAL STATEMENTS December 31,2012

3. Committed: amounts that can be used only for spedfic purposes determined by a formal action of the mosquito district board The board is the highest level of decision making authority for the mosquito district. Commitments may be established, modified, or resdnded only through ordinances or resolutions by the board.

4. Assigned: amounts diat do not meet the criteria to be classified as restricted or committed, but that are intended to be used for specific purposes. Under the mosquito district's adopted policy, only the board may assign amounts for specific purposes

5. Unassigned:

Notts^ndable: $ 1,003,227 Restricted. -0-Gomnutted: -0-Assigned: -0-Unassigned: 3.084.240

Total S 4,087,467

6. When an expenditure is incurred for purposes for which both restricted and unrestricted funds to have been spent first. When an expenditure is incurred ofr wich comitte, assigned, or unassigned fimd balances are available, the mosquito district considers amounts to have b^n spent first out of committee fonds, then assigned fonds, and finally unassigned fonds, as needed, unless the board has provided otherwise in the commitment or assignment actfons.

J. Vacation and Sick Leave Full time employees accme vacation leave at varying rates depending on years of service. Vacation leave must be used in Ihe year it is accrued. An employee who resigns with proper notice may be paid up to 80 hours of unused vacation leave.

Empfoyees accrue sick leave at varying rates depending on years of service. Employees are allowed to carryover up to 80 hours of accrued sick leave.

2. CHANGES IN AgCUMULATED DEPREClATtON AND CAPITAL ASSETS Summary of changes:

Accumulated Deoreciation

$ 661,063

73,859

Assets S 1,701.772

61,138

Balance at December 31, 2011 Additions: 2012 Deductions: 2012 25.288 37.430 Balance at December 31,2012 $ 709.634 % 1.725.480

3 COMPENSATED ABSENCES Ai December 31,2012. employees of the mosquito abatement district have accumulated and vested $ 12.619 of employee leave t>enefits, which is recorded in long-term obliganons.

15


Jennings, Louisiana

NOTES TO THE FINANCIAL STATEMENTS Decei r^r31 ,2012

4. AD VALOREM TAXES Hie following is a summary of authorized and levied ad valorem taxes:

The mosquito abatement district was authorized to levy up to 11 SOmilts in ad valrem taxes for the year, however, during the year, Ihe district's board passed a resolution to roll back the miUage to 8.70 mills, and received that amount in ad valorem taxes for the year ended December 31.2012.

The fotfowing are the 10 largest piindpal taxpayers for the district:

Taxpayer K M Pipeline, IXC Tennessee Gas Pipeline Co. Entergy Gulf States LA LLC Cofomal Pipeline Co. Heliooip Energy Co. Florida Gas Transportation Co. Enterprise Lou-Tex NOLPipeline Texas Cias Transmission, LLC Targa Midstream Services LLC Riceland Petroleum (JO.

Type of Business Construction Gas Utitity Construction Energy Transportation Construction Gas Oil Oil

2012 Assessed Valuation

$2,045,448 737.803 673378 446,355 431,750 397,142 374,426 202,506 192,634 190386

Percentage ofTotal Assessed 8.42% 3.04 2.77 1.84 1.78 1.64 1.54 0.83 0.79 0.78

5. PENSION PLAN Substantially all eo^loyees of the mosquito abatement district are members of the Parochial Enqtloyees Retirement System of Louisiana (System), a multiple-employer (cost-sharing) public employee retirement system (PERS), controlled and administered by a separate board of trustees. The pension plan issues a stand-afone finandal report, which is available to the public. The System is Composed of two distinct plans. Plan A and Plan B, with separate assets and beitefits provisions. Employees of the district are tnembers of Plan A.

All permanent employees working at least 28 hours per week and who are paid wholly or in part from the district's fonds are eligible to partiapate in the systeoL Under Plan A, empfoyees may retire at or after age 60 with at least 10 years of credible 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 enniled to a retirement benefit, payable monthly for life, equal to 3% of their final-average salary for each year of credible service. However, for those eiqiloyees who were members of the supplemental plan only prior to January 1,1980, the benefit ts equal to one per cent of the final-average salary plus $ 24 for each year of supplemental-plan-only service earned prior to January 1,1980. Final average salary Is the empfoyee's average salary over the 36 consecutive or joined months that produce the highest average. Empfoyees who terminate with at least the amount of credible service stated above and who do not withdraw iheir empfoyee oontnbutions may retire at the ages spedfied above and receive the benefit accrued to their date of termination. The system also provides death and disability benefits. Benefits are established by state statute

Contributions to the system indude one-fourth of one per cent of the taxes shown to be collectible (>y (he tax rolls of each parish, except Orieans and East Baton Rouge Parishes. These tax dollars are divided between Plan A and nan B based proportionately on the salaries of the active members of each plan. State statute requires covered employees to contribute a percentage of their salaries to the System. As provided by the

16

JEFFERSON DAVIS PARISH MOSOUfTO ABATEMENT DISTRICT

Jennings, Louisiana

NOTES TO THE FINANCIAL STATEMENTS December 31,2012

Louisiana Revised Statute 11:103, the employer contributions are determined by actuarial evaluation and are subject to char\ge each year based on the results of the valuatfon for the prior year.

I t ie following provides other discfosures required by GASB 27: 12/31/12

Required Contributfon Rates: Empfoyees 9.50% Emptoyer 15.75% Current Year Covered Payroll S 398,298

6. RESTRICTED FUND BALANCE The district received distributions of protested ad valorem taxes that are restricted by law until the protest has been cleared. The restrictfon is as follows:

Any fonds received as payment of taxes under protest shall be used only for nonrecurring expenses except for any such fonds pledged as security for any bonds or other evidences of indebtedness and for any such fonds when the propositfon approving the millage provides specifically for another intended purpose. The govermng authority of any jurisdictfon shall not use any such fonds for nonrecurring expenses in a manner, which will displace, replace, or supplant fonds, which were otherwise available for such nonrecumtig expenses.

At December 31,2012 the district held $ 0 of such funds as restricted cash and restncted fond balance.

7. COMPENSATION OF COMMISSIONERS As provided by Louisiana Revised Statute 33:7723 the board of commissioners serve without compensatfon.

8. USE OF ESTIMATES The preparation of Jefferson Davis Pansh Mosquito Abatement District's financial statements in conformity with generally accepted accounting prindples requires management to make estimates and assumptions that affect the reported amounts of assets and liabUibes and disclosure of contingent assets and liabilities at the date of the finandal statements and the reported amounts of revenues and expenses dunng the reporting period. Actual results could differ from those estimates.

9 OFF BALANCE SHEET RISK The district purchases oommerdal insurance to reduce the risk of loss due to liability daims and foss due to physical damage to fixed assets should they occur.

10. SUBSQUENT EVENTS Management evaluated subsequent events through May 16,2013, the date these finandal statements were available to be issued, to evaluate whether such evenu warrant adjustment to any reported amounts or inclusion of additional finandal disdosures. No such adjustments or disdosures were judged necessary.

17

jrj-l-IERSON DAVIS PARISH MOSQUI TO ABATtMLNI DlSFRICr

Jennings Louisiana

N() \ \:S TO 1 HIE FINANCl AI VIA I r,MKNI S December 31, 2012

11 Nl-W ACCOUNN'VING PRONOUNCEMrN IS During the fiscal year ending December 31, 2012, the Jcrterson Davis Parish Mosquito Abatement Districi adopted (i ASB 63. Fmanaal Reportma, of Deferred Outjhw s of Resources Deferred Inflows of Resources and Net Position which provides guidance for reporting deferred outflows and resources deterred inflows ol resources, and net position in a statement ol financial position and related disclosures The statement ot net assets IS renamed the statement of net position and includes the following elements assets, deferred outflows of resources, liabilities deferred inflows of resources, and net position

In April 2012, the Government Accounting Standards Board (GASB) issued Statement No 65. /lems Previously Repttrtcd as A s.sels and Uabihtws The statement clarifies the appropriate reporting of deferred outflows of resources or deferred inflows of resources to ensure consistency in financial reporting The provision of GASB 65 must be impleinenied by the JefTerson Davis Parish Mosquito Abatement Hisirict for the year ending December 31, 2013 The efleci of implementation on the JefTerson Davis Parish Mosquito Abatement District s financial statements has not yet been deternimed

IK

REQUIRED SUPPLEMENTARY INFORMATION

19


COMPONEMT UNIT BUDGETARY COMPARISON SCHEDULES QENERALFUND

For the Year Ended December 31.2012

Excess (Deficiency) ol Revenues and Other Rnarwing Sources Over Experwlitures

Fund Balance. Beginning of Year

Fund Balance. End of Year

260,195

2.824,045

$ 3.084.240

The accompanying notes are an integral part of the financial statements 20

REVENUES Ad Valorem Taxes Penahtes and Interest on Taxes Interest Income Corp Gr«nt - FEMA Reimbursement

Total Revenues

EXPENDITURES General Office and Adnnlnistrattve Surveillance Control and Equipment Maintenance

Total Expenditures

OTHER FINANCING SOURCES FEMA Reimbursement Proceeds From Disposal of Assets Budgeted From Prior Fund Balance Total Other Rnancing

Budget

$ 1.683.627 3.000

45.000 2.000

1,733.627

336.034 284.600 865.725

1,486,359

0 0 0 0

Actual

$ 1,683.627 4.613

45.766 1342

1.735.848

428.774 263,992 811.286

1,504.052

0 28.400

0 28,400

Variance Favorable (Unfavorable)

$ (0) 1.613

766 (158)

2 ja i

(92,740) 20.608 54.439

(17.693)

0 28.400

0 28.400

260.195

2.824.045

8 3.084.240

REQUIRED BY GOVERNMENT AUOmNG STANDARDS

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COMPLIANCE

AND

INTERNAL CONTROL

22

%*l Tmsstn SERVICE^^HF

INDEPENDENT AUTOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN

AUDIT OF FINANCTAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERSMENTAVDITINC STANDARDS

Board of Commissioners JefTerson Davis Parish Mosquito Abatement District Jennings. Louisiana

Wc have audited, in accordance with the audiUng standards generally accepted in the United States of America and the standarvts applicable to financial audits contained in Goverrtmeni Audifing Standards issued by the Comptroller General of the United States, the financial statements of the govemmcnUU activities of Jefferson Davis Parish Mosquito Abatement Dtstnct as of and for the year ended December 31,2012. and the related notes to the financial statements, which collectively comprise the District's basic financiaJ stal&^enxs and have issued our rqwTt thereon dated May 16.2012

Internal Control Over Financial Reporting

In planning and performing our audit of the finanaal statements, we considered Jefferson Davis Pansh Mosquito Abatement Distna*s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressmg our opinions on the financial statements, but not for the purpose of expressing an opmion on the effectiveness of Jefferson Davis Parish Mosquito Abatement District's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Jefferson Davis Pansh Mosquito Abatement District's internal control over financial repotting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the nomial course of performing their assigned ftmcbons. to prevent, or detect and correct, misstatements on a timely basis A matenal weakness is a deficiency, or a combination of deficiencies, in internal control, such that Oiere is a reasonabh possibility that a matenal misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely t>asts A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance

Our constderatjon of intemal control was for the limited purpose descnbed in the first paragraph of this section and was not designed to identify all deficienaes in intemal control that might be material weaknesses or, significant deficienaes Given these limitations, during our audit we dtd not identify any deficiencies m intemal control that we consider to be matenal weaknesses However, matenal weaknesses may exist that have not been identified

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Compliance and Other Matters

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

Purpose of this Report

The purpose of this report is solely to describe the scope or our testing of intemal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance This report is an integral part of an audit performed in accordance with Govemment Auditing Standards in considering the entity's intemal control and compliance Accordingly, this communication is not suitable for any other purpose However, under Louisiana Revised Statue 24 513, this report is distnbuted by the Legislative Auditor as a public document

Richard BulIer CPA Services LLC Jennings, Louisiana

May 16,2013

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Jefferson Davis Pansh Mosquito Abatement Dtstnct

Schedule of Findings and Responses As of December 31,2012

SBCnONI Summary of Auditor's Reports

a. Report on Iniemal Control and Compliance Material to the Financial Statements

Internal Control Material Weaknesses _ Yes _ S J i o

Compliance Con^anoe Matenal to Financial Statements Yes . J ^ N o

b. Federal Awards

There were no Federal Program Expenditures

c Identification of Major Programs.

There were no Federal Program Expenditures

d. Management Letter

No man^ement letter was Issued for the year ended December 31,2011

SECTION 11 Finandal Statement Finding

No Findings to Report

SECTION III Federal Award Findings and Questioned Costs

There were no matters reported.

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Jefferson Davis Pansh Mosquito Abatement District

Schedule of Prior Year Findings Asof December 31,2012

SECTION I INTERNAL CONTROL AND OOMPUANCE MATERLM. TO THE FINANaAL STATEMENTS NO FINDINGS TO REPORT

SECTION II INTERNAL CONTROL AND COMPLIANCE MATERIAL TO FEDERAL AWARDS NO FINDINGS TO REPORT

SECTION III MANAGEMENT LHTTER NO FINDINGS TO REPORT

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financial statements of theapp1.lla.la.gov/publicreports.nsf/c7ff9d45a889e...that report is an audit...

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