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TOWN OF CAMPTI, LOUISIANA

ANNUAL FINANCIAL REPORTJUNE 30,2005

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

Release Date_

Town of Campti, LouisianaFinancial Report

June 30, 2005

T A B L E O F C O N T E N T S

Exhibit PageRequired Supplementary Information

Management's Discussion and Analysis - 1 -4

Independent Auditor's Report - 5-6

Basic Financial Statements

Government-Wide Financial Statements

Statement of Net Assets A 9

Statement of Activities B 10

Fund Financial Statements

Governmental Funds

Balance Sheet-Governmental Funds C 12

Reconciliation of the Governmental Funds Balance Sheetto the Statement of Net Assets D 13

Statement of Revenues, Expenditures and Changesin Fund Balances-Governmental Funds E 14

Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balances of theGovernmental Funds to the Statement of Activities F 15

Proprietary Funds

Statement of Net Assets G 16

Statement of Revenues, Expenses and Changesin Net Assets H 17

Statement of Cash Flows I 18

Notes to Financial Statements - 20-32

Town of Campti, LouisianaFinancial Report

June 30, 2005

T A B L E O F C O N T E N T S

Internal Control and Compliance

Report on Internal Control over Financial Reportingand on Compliance and Other Matters Based on anAudit of Financial Statements Performed inAccordance with Government Auditing Standards

Schedule of Prior Year Audit Findings

Schedule of Findings & Questioned Costs

Status of Legislative Auditor's Report Findings

Exhibit Page

J

K

L

M

34-35

36-38

39-44

45

Town of Campti, LouisianaP. O. Box 216

Campti,LA 71411

MANAGEMENT'S DISCUSSION AND ANALYSISfor the Year ended June 30, 2005

The Management's Discussion and Analysis is an element of the reporting model adopted by theGovernmental Accounting Standards Board (GASB) in their Statement No. 34. Certain comparativeinformation is presented to provide an overview of its operations.

Financial Highlights

This annual report consists of a series of financial statements. The Statement of Net Assets and theStatement of Activities provide information about the activities of the Town as a whole and present alonger-term view of the Town's finances. These statements tell how these services were financed in theshort-term as well as what remains for future spending. The Town maintains three funds; twogovernmental funds and a proprietary fund, the water system.

A summary of the basic government-wide financial statements is as follows:

Summary of Statement of Net Assets

June 2005 June 2004

ASSETS:

GovernmentalActivities

$ 64,495Current AssetsCapital Assets, Net ofAccumulated Depreciation 110.319

Total Assets

LIABILITIES:

Accounts PayableCustomer DepositsLong Term Debt

Total Liabilities

NET ASSETS:

$174.:

$ 54,4570

10.236

$ 64.693

Invested in Capital Assets,Net of Related Debt $ 110,319

Unrestricted (Deficit) (198)

Business-Type Governmental Business-TypeActivities Total Activities Activities Total

$ 50,385 $ 114,880 $193,172 $ 65,772 $ 258,944

2.200.725 2.311.044 117.878 2.147.731 2.265.609

S2T425T924 $311.050 $2.213.503 $2.524.:

$ 60,643 $ 115,100 $ 91,21125,952 25,952 0

417.289 427.525 34.236

$ 503.884 $ 568.577 $125.447

$1,764,249 $1,874,568 $117,878(17.023) (17,221) 67.725

84,22225,952

445.327

175,43325,952

479.563

$ 555.501 $ 680.948

$1,675,076 $1,792,954(17.074) 50.651

NET ASSETS

Summary of Statement of Activities

Page 3

June 2005 June 2004Governmental

ActivitiesREVENUES:

Program Revenues:TaxesLicenses & PermitsIntergovernmental-

Beer TaxState Grant

Charge for ServicesInterest & MiscellaneousTransfers In

Total Revenues

EXPENSES:

General GovernmentPublic SafetyPublic WorksOperating ExpenseTransfers Out

$116,02159,994

945194,741

9,63320,59621.000

$422.930

$208,77381,470

00

212.082

Business-TypeActivities

$ 00

00

92,60920,528

212.082

$325.219

$ 000

214,99521.000

GovernmentalTotal Activities

$116,02159,994

945194,741102,24241,124

233.082

$748.149

$208,77381,470

0214,995233.082

$180,09841,167

029,32223,2984,027

0

$277.912

$112,65774,730

4000

52.589


$ 00

0327,241121,954

1,06852.589

$502.852

$ 000

253,1610

Total

$180,09841,167

0356,563145,252

5,09552.589

$780.764

$112,65774,730

400253,16152.589

Total Expenses

Change in Net Assets

$502.325 $235.995 $738.320 $240.376 $253.161 $493.537

Governmental Activities

The Town's assets exceeded its liabilities by $110,121 (net assets) for the year ending June 30, 2005. Thisis a decrease of $75,482 from prior year.

Business Type Activities

The Proprietary Fund, the water system, experienced an operating loss of $77,522 for the year ending June30, 2005. This compares to a $(109,166) loss for the year ended June 30, 2004.

General Fund Budgetary Highlights

The Town did not prepare a budget for the 2004/2005 fiscal year.

Economic Factors and Next Year's Budget

The Town has not prepared a budget for 2005/2006 fiscal year.

Contacting the Town

This financial report is designed to provide our citizens, taxpayers, and creditors with a general overviewof the Town's finances and to show the Town's accountability for the money it receives. Any questionsabout this report or requests for additional information may be directed to the Town at P. O. Box 216,Campti,LA 71411.

Johnson, Thomas & CunninghamCertified Public Accountants

321 Bicnville StreetEddie G. Johnson, CPA - A Professional Corporation (1927-1996) Natchitoches, Louisiana 71457

(318) 352-3652Mark D.Thomas, CPA-A Professional Corporation Fax (318) 352-4447Roger M. Cunningham, CPA - A Professional Corporation

INDEPENDENT AUDITOR'S REPORT

The Honorable Donald Davis, Mayorand the Town Council

197 Edenborne StreetCampti, Louisiana, 71411

We were engaged to audit the accompanying financial statements of the governmental activities, thebusiness-type activities, and each major fund information of the Town of Campti, Louisiana, as of andfor the year ended June 30, 2005, which collectively comprise the Town's financial statements as listedin the table of contents. These financial statements are the responsibility of the Town of Campti'smanagement.

We were unable to obtain the supporting documentation for the financial activities of the Town ofCampti, and we were unable to satisfy ourselves as to the financial activities with other auditingprocedures. These financial activities are included in the government-wide financial statements.

Because of the significance of the matters discussed in the preceding paragraph, the scope of our auditwork was not sufficient to enable us to express an opinion; therefore, we do not express an opinion on thefinancial statements referred to in the first paragraph.

In accordance with Government Auditing Standards, we have also issued our report dated June 16, 2006,on our consideration of the Town of Campti's internal control over financial reporting and on our tests ofits compliance with certain provisions of laws, regulations, contracts, grant agreements, and othermatters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing and not to provide an opinion on theinternal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be considered in conjunctionwith this report in considering the results of our audit.

The Management's Discussion and Analysis and the other required supplementary information on pages1 through 4 are not a required part of the basic financial statements but are supplementary informationrequired by accounting principles generally accepted in the United States of America. We have appliedcertain limited procedures, which consisted principally of inquiries of management regarding themethods of measurement and presentation of the other required supplementary information. However,we did not audit the information and express no opinion on it.

Johnson. Thomas & CunninghamJohnson, Thomas & Cunningham, CPA's

June 16, 2006Natchitoches, Louisiana

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDEFINANCIAL STATEMENTS

Town of Campti, LouisianaGovernment-Wide Statement of Net Assets

June 30, 2005

Exhibit APage 9

ASSETS:Cash & Cash EquivalentsRevenue ReceivableDue from Other FundsRestricted Assets-

Cash & Cash EquivalentsCapital Assets - Net

Total Assets

LIABILITIES:Accounts PayableAccrued ExpensesDue to Other FundsCustomer DepositsAccrued InterestLong-Term Debt-

Current PortionLong-Term Portion

Total Liabilities

NET ASSETS:Invested in Capital Assets,Net of Related Debt

Unrestricted (Deficit)Total Net Assets


$ 44,0454,229

16,221

0110.319

$174.814


$ 26,7054,418

0

19,2622,200,725

$2.251.110

Total

$ 70,7508,647

16,221

19,2622.311.044

$2.425.924

4,75349,704

000

10,2360

64.693

$ 63923,75116,22125,952

845

19,187417,289

$ 503,884

$ 5,39273,45516,22125,952

845

29,423417,289

$ 568,577

$110,319(198)

$1,764,249(17.023)

$1,874,568(17.221)

$1.857.347

See notes to financial statements.

Exhibit BPage 10

Town of Campti, LouisianaGovernment-Wide Statement of Activities

June 30,2005

Activities Expenses

Governmental Activities:General Government $208,773Public Safety 81.470

Total GovernmentalActivities 5290,243

Business-Type Activities:Water/Sewer $214.995

Total Business-TypeActivities

Total Government

$214.995

Program RevenuesFees, Finesand Charges Operatingfor Services Grants

O S 194,7419.633 0

$ 9.633 $ 194.741

$ 92,609 $

$ 92.609 $

Net (Expense) Revenueand Changes in Net Assets

Governmental Business-TypeActivities Activities Total

$ (14,032)(71.837)

0 $ (14,032)_0 (71.837)

_Q $ (85.869)

S (122.386) $ (122.386)

$ (122.386) $ (122.386)

mm srm^nGeneral Revenues:

Taxes-Ad ValoremSales Tax

Licenses & PermitsIntergovernmental:

Beer TaxInterest & MiscellaneousTransfers (Net)

Total General Revenuesand Transfers


Net Assets-Beginning of Year

Net Assets-End of Year

$ (85.869)

$ 10,020106,00159,994

94520,596

(191.082)

$ 6.474

$ (79,395)

189.516

S 1 1 Q 1 2 1

$ (122.386)

$ 000

020,528

191.082

$ 211.610

$ 89,224

1.658.002

s,747.226

$ (208.255'

$ 10,020106,00159,994

94541,124

0

$ 218.084

$ 9,829

1.847,518

S1857347


FUND FINANCIAL STATEMENTS

Town of Campti, LouisianaBalance Sheet-Governmental Funds

June 30, 2005

Exhibit CPage 12

Major Funds

ASSETS:Cash & Cash EquivalentsRevenue ReceivablesDue from Other Funds

Total Assets

LIABILITIES:

Accounts PayableAccrued Expenses

Total Liabilities

FUND BALANCES:

Unreserved

Total Liabilitiesand Fund Balances

GeneralFund

$44,0454,229

16.221

$ 4,75349.704

$54.457

$10,038

$64t495

LCDBGFund

$0

0

$0

$00

$0

$0

TotalGovernmental

Funds

$44,0454,229

16.221

$64.495

$ 4,75349.704

$54.457

$10.038

$64.495


Exhibit DPage 13

Town of Campti, LouisianaReconciliation of the Governmental Funds

Balance Sheet to the Statement of Net AssetsJune 30, 2005

Total Fund Balances for the Governmental Funds $ 10,038

Amounts reported for Governmental Activitiesin the Statement of Net Assets are different because:

Capital Assets used in Governmental Activities are notcurrent financial resources and, therefore, are not reportedin the Governmental Funds Balance Sheet-

Capital Assets 208,907Less, Accumulated Depreciation (98,588)

Long-term Liabilities are not due and payable in thecurrent period and, therefore, are not reported in theGovernmental Funds Balance Sheet-

Long-term Debt (10.236)

Total Net Assets of Governmental Activities $110.121


Exhibit EPage 14

Town of Campti, LouisianaStatement of Revenues, Expenditures and Changes in Fund Balances-

Governmental FundsYear Ended June 30, 2005

Major Funds

REVENUES:Taxes-

Ad ValoremSales Tax

Licenses & PermitsIntergovernmental-

Beer TaxState Grant

Charges for ServicesInterest & Miscellaneous

Total Revenues

EXPENDITURES:General GovernmentPublic SafetyCapital Outlay

Total Expenditures

(Deficiency) of Revenuesover Expenditures

OTHER FINANCING SOURCES:Transfers InTransfers Out

Total Other Financing

(Deficiency) of Revenues and OtherSources over Expendituresand Other Uses

Fund Balance-Beginning of Year

Fund Balance-End of Year

GeneralFund

$ (24.695)

$ 21,000(68,141)

$(47,141)

LCDBGFund

0

0

TotalGovernmental

Funds

$ 10,020106,00159,994

94550,8009,63320.596

$257.989

$ 000

0143,941

00

$143.941

$ 10,020106,00159,994

945194,7419,63320.596

$401.930

$206,49476,190

0$282,684

$ 00

143.941$143.941

$206,49476,190143.941$426.625

$ (24.695)

; 21,000(68.141)(47.141)


Exhibit FPage 15

Town of Campti, LouisianaReconciliation of the Statement of Revenues, Expendituresand Changes in Fund Balances of the Governmental Funds

to the Statement of Activitiesfor the Year Ended June 30, 2005

Net Change in Fund Balance-Governmental Funds $(71,836)

Amounts reported for Governmental Activitiesin the Statement of Activities are different because:

Depreciation expense on capital assets is reportedin the Government-wide financial statements, butthey do not require the use of current financialresources and are not reported in the Fund FinancialStatements. Current year depreciation expense is

Total Change in Net Assets


Town of Campti, LouisianaStatement of Net Assets

Proprietary Fund-Water & Sewer FundYear Ended June 30, 2005

Exhibit GPage 16

ASSETS:Current Assets-

Cash & Cash EquivalentsRevenue Receivable

Total Current Assets

Restricted Assets-Cash & Cash Equivalents

Total Restricted Assets

Capital Assets, Net ofAccumulated Depreciation

Total Capital Assets

Total Assets

LIABILITIES:Current Liabilities-

Accounts PayableAccrued ExpensesDue to General Fund

Total Current Liabilities

Current Liabilities Payable from Restricted Assets-Customer DepositsCurrent Maturity of Long-Term DebtAccrued Interest

Total Current Liabilities Payablefrom Restricted Assets

Non-Current Liabilities-Long-Term Debt

Total Liabilities

NET ASSETS:Invested in Capital Assets, Net of Related DebtUnrestricted (Deficit)

Total Net Assets

$ 26,7054.418

$ 31.123

$ 19.262$ 19.262

$2.200.725$2.200.725

$ 63923,75116.221

$ 40.611

$ 25,95219,187

845

$ 45.984

$ 417.289

$ 503.884

$1,764,249(17.023)


Town of Campti, LouisianaStatement of Revenues, Expenses and Changes in Net Assets

Proprietary Fund-Water & Sewer FundYear Ended June 30, 2005

Exhibit HPage 17

OPERATING REVENUES:Charges for Services-

Water/SewerConnection FeesMiscellaneous

Total Operating Revenues

OPERATING EXPENSES:DepreciationEquipment ExpenseMiscellaneousOperations & MaintenanceOffice Supplies, Postage & PrintingRetirementSalariesTaxes-PayrollTruck Maintenance & OperationsUtilities & Phone

Total Operating Expenses

Loss from Operations

NON-OPERATING REVENUES (EXPENSES):Loss on Disposal of AssetInterest IncomeInterest Expense

Total Non-operating Revenues (Expenses)

Net Loss Before Contributions & Transfers

TRANSFERS:Transfers InTransfers Out

Total Transfers


Net Assets-Beginning of Year

Net Assets-End of Year

$ 91,4891,120

20.433S 113.042

$ 73,6814,7684,303

17,040774

9,38259,742

1,6371,025

22.515$ 190.564

$ (77.522)

$ (5,323)95

09.108)S (24.336-)

$ (101.858)

212,082(21.000)191.082

5 89,224

1.658.002


Town of Campti, LouisianaStatement of Cash Flows

Proprietary Fund-Utility FundYear Ended June 30, 2005

Exhibit IPage 18

$ 68,141(21,000)

$ 47.141

95

Cash Flows from Operating Activities:Cash Received from CustomersCash Payments to SuppliersCash Payments to Employees

Net Cash Provided (Used) by Operating Activities

Cash Flows from Non-Capital Financing Activities:Operating Transfers InOperating Transfers Out

Net Cash Provided (Used) byNon-Capital Financing Activities

Cash Flows from Capital Financing Activities:Principal PaymentsInterest PaidChange in Fixed Assets

Net Cash (Used) by Capital Financing Activities

Cash Flows from Investing Activities:Interest Received

Net Cash Provided by Investing Activities

Net Decrease in Cash

Cash-Beginning of Year

Cash-End of Year

Reconciliation of Operating Loss to CashUsed by Operating Activities:Operating LossDepreciation(Increase) Decrease to Accounts ReceivableIncrease (Decrease) to Accounts PayableIncrease (Decrease) to Accrued Liabilities

Net Cash Provided (Used) by Operating Activities

Noncash, investing, capital and financing activities:

During the past year, the Water & Sewer fund received capital assets with a net value of $143,941 from theLCDBG fund.

95

$ (77,522)73,68110,183

(22,836)(6.505)


NOTES TO FINANCIAL STATEMENTS

Town of Campti, LouisianaNotes to Financial Statements

June 30,2005

Introduction:

The financial statements of the Town of Campti have been prepared in conformity with generallyaccepted accounting principles (GAAP) as applied to government units. The GovernmentalAccounting Standards Board (GASB) is the accepted standard-setting body for establishinggovernmental accounting and financial reporting principles. The financial statements of the Town ofCampti, Louisiana are prepared in accordance with generally accepted accounting principles(GAAP). The Town's reporting entity applies all relevant Governmental Accounting StandardsBoard (GASB) pronouncements. Proprietary funds and similar component units apply FinancialAccounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB)opinions issued on or before November 30, 1989, unless the pronouncements conflict with orcontradict GASB pronouncements, in which case GASB prevails. The more significant of theTown's accounting policies are described below.

1. Summary of Significant Accounting Policies:

A. REPORTING ENTITY-

The Town is the basic level of government which has financial accountability and control overall activities related to the Town's operations and services provided. The Town is not includedin any other governmental "reporting entity" as defined by GASB pronouncements, since theTown Mayor and Council members are elected by the public and have decision making authorityto levy taxes, the power to designate management, the ability to significantly influenceoperations and primary accountability for fiscal matters. In addition, there are no componentunits as defined in Governmental Accounting Standards Board Statement 14, which are includedin the Town's reporting entity.

The financial statements of the Town of Campti, Louisiana are prepared in accordance withgenerally accepted accounting principles (GAAP). The Town of Campti, Louisiana's reportingentity applies all relevant Governmental Accounting Standards Board (GASB) pronouncements.Proprietary funds apply Financial Accounting Standards Board (FASB) pronouncements andAccounting Principles Board (APB) opinions issued on or before November 30, 1989, unless thepronouncements conflict with or contradict GASB pronouncements, in which case GASBprevails.

B. BASIS OF PRESENTATION-

Govemment-Wide Financial Statements (GWFS)

The Statement of Net Assets and Statement of Activities report information about the reportinggovernment as a whole. They include all funds of the reporting entity. Governmental activitiesgenerally are financed through taxes, intergovernmental revenues, and other non-exchangerevenues. Business-type activities are financed in whole or in part by fees charged to externalparties for goods or services.


June 30, 2005

The Statement of Activities presents a comparison between direct expenses and programrevenues for each function of the Town's governmental activities. Direct expenses are those thatare specifically associated with a program or function. Program revenues include (a) fees andcharges paid by the recipient for goods or services offered by the program, and (b) grants andcontributions that are restricted to meeting the operational or capital requirements of a particularprogram. Revenues that are not classified as program revenues, including all taxes, are presentedas general revenues.

C. FUND ACCOUNTING-

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

The Town maintains two funds. They are categorized as a governmental fund and a proprietaryfund. The emphasis on fund financial statements is on major governmental and enterprise funds;each displayed in a separate column. A fund is considered major if it is the primary operatingfund of the entity or meets the following criteria (the Town considers all of its funds to bemajor):

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

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

The major funds of the Town are described below:

Governmental Funds-

General Fund

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

LCDBG Fund

The Lousisiana Community Development Block Grant Funds are used to account for allfinancial resources used in the improvements to the Town's Water/Sewer System.


June 30, 2005

Proprietary Fund-

Enterprise Fund

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

D. MEASUREMENT FOCUS/BASIS OF ACCOUNTING-

Basis of accounting refers to when revenues or expenditures/expenses are recognized in theaccounts and reported in the financial statements. It relates to the timing of the measurementsmade regardless of the measurement focus applied.

Accrual Basis - Government-Wide Financial Statements (GWFS)

The Statement of Net Assets and the Statement of Activities display information about the Townas a whole. Both of these statements have been prepared using the economic measurement focusand the accrual basis of accounting. Revenues, expenses, gains, losses, assets, and liabilitiesresulting from exchange and exchange-like transactions are recognized when the exchange takesplace.

Modified Accrual Basis - Fund Financial Statements (FFS)

The accounting and financial reporting treatment applied to a fund is determined by itsmeasurement focus. Governmental fund types use the flow of current financial resourcesmeasurement focus and the modified accrual basis of accounting. Under the modified accrualbasis of accounting, revenues are recorded when susceptible to accrual; i.e., when they are bothmeasurable and available. "Measurable" means the amount of the transaction can be determinedand "available" means collectible within the current period or soon enough thereafter to payliabilities of the current period. The Town considers all revenues "available" if they arecollected within 60 days after year-end. Expenditures are generally recorded under the modifiedaccrual basis of accounting when the related liability is incurred. The exceptions to this generalrule are that (1) unmatured principal and interest on long-term debt, if any, are recorded whendue and (2) claims and judgments and compensated absences are recorded as expenditures whenpaid with expendable available financial resources.


June 30, 2005

E. CASH AND INTEREST-BEARING DEPOS1TS-

For purposes of the Statement of Net Assets, cash and interest-bearing deposits include alldemand accounts and savings accounts of the Town.

F. CAPITAL ASSETS-

Capital assets, which include property, plant, and equipment, are reported in the governmentalactivities column in the government-wide financial statements. Capital assets are capitalized athistorical cost or estimated cost if historical cost is not available. Donated assets are recorded ascapital assets at their estimated fair market value at the date of donation. The Town maintains athreshold level of $2,500 or more for capitalizing capital assets.

The costs of normal maintenance and repairs that do not add to the value of that asset ormaterially extend the life of that asset are not capitalized.

Depreciation of all exhaustible capital assets is recorded as an expense in the Statement ofActivities, with accumulated depreciation reflected in the Statement of Net Assets. Depreciationis provided over the assets' estimated useful lives using the straight-line method of depreciation.The range of useful lives by type of asset is as follows:

Buildings and improvements 40 yearsEquipment and vehicles 5-10 yearsUtility system and improvements 40 years

In the fund financial statements, capital assets used in governmental fund operations areaccounted for as capital outlay expenditures of the governmental fund upon acquisition. Capitalassets used in proprietary fund operations are accounted for the same as in the government-widestatements.

G. RESTRICTED ASSETS-

Restricted assets include cash, interest-bearing deposits, and investments of the proprietary fundthat are legally restricted as to their use. The restricted assets are related to utility bond covenantaccounts and customer deposits.

H. COMPENSATED ABSENCES-

There is no formal leave policy for the Town; therefore, no entry is made to record compensatedabsences.

Town of Campti, Louisiana

Notes to Financial StatementsJune 30, 2005

I. EQUITY CLASSIFICATIONS-

In the government-wide statements, equity is classified as net assets and displayed in threecomponents:

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

b. Restricted net assets—Consists of net assets with constraints placed on their use either by (1)external groups such as creditors, grantors, contributors, or laws or regulations of othergovernments; or (2) law through constitutional provision 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".

In the fund statements, governmental fund equity is classified as fund balance. Fund balance isfurther classified as reserved and unreserved, with unreserved further split between designatedand undesignated.

J. OPERATING REVENUES AND EXPENSES-

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

K. EXPENDITURES/EXPENSES-

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

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

Governmental Funds - By CharacterProprietary Fund - By Operating and Nonoperating

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

L. BUDGET AND BUDGETARY ACCOUNTING-

Prior to the beginning of each fiscal year, the Town adopts a budget for the next fiscal year. Thebudget is open for public inspection. All budgetary appropriations lapse at the end of the fiscalyear. The budget is prepared on the modified accrual basis of accounting. For the year endedJune 30, 2005, the Town did not prepare a budget.


June 30, 2005

M. INTERFUND TRANSACTIONS-

Legally authorized transfers are treated as interfund transfers and are included in the results ofoperations of both governmental and proprietary funds.

2005Operating Operating

Transfers In Transfers Out

General Fund $ 21,000 $212,082Utility Fund 212.082 21.000

Totals S191rQ82 $191.082

N. LONG-TERM OBLIGATIONS-

In the government-wide financial statements, long-term debt is reported as liabilities in theapplicable governmental activities statement of net assets.

In the fund financial statements, governmental fund types recognize debt issued reported as otherfinancing sources. Repayment of the principal and interest is shown as an expenditure.

O. ESTIMATES-

The preparation of financial statements in conformity with accounting principles generallyaccepted in the United States of America, require management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure of contingentassets and liabilities at the date of the financial statement and the reported amounts of revenue,expenditures, and expenses during the reporting period. Actual results could differ from thoseestimates.

2. Ad Valorem Taxes

The Town levies taxes on real and business personal property located within the boundaries of theTown. Property taxes are levied by the Town on property values assessed by the Natchitoches ParishTax Assessor and approved by the State of Louisiana Tax Commission.


June 30, 2005

The Town bills and collects property taxes. The Town recognizes property tax revenues whenlevied.

Property Tax CalendarAssessment date January 1Levy date August 31Tax bills mailed October 15Total taxes are due December 31Penalties and interest added January 31Lien date January 31Tax sale May 15

For the year ended June 30, 2005, taxes of 5.75 mills were levied.

Total taxes collected were $10,020 for 2005, and no provision for uncollectibles is made.

3. Cash and Cash Equivalents:

The Town has cash, cash equivalents, and time deposits (bank balances) of $89,952.

The deposits are stated at cost which approximates market. Under state law these deposits and theresulting bank balances must be secured by federal deposit insurance or the pledge of securitiesowned by the fiscal bank. The market value of the pledged securities plus the federal depositinsurance must at all times equal or exceed the amount on deposit with the fiscal agent. At June 30,2005, these deposits were fully insured by FDIC Insurance.

4. Restricted Assets - Proprietary Fund Type:

Restricted assets of the Utility Fund were applicable to the following at June 30, 2005:

2005

Bond Sinking Fund $ 4,129Bond Contingency Account 8,033Customer Deposits Account 6,729Bond Reserve Account 371

Cash $19,262


June 30,2005

5. Capital Assets:

Capital assets and depreciation activity for the year ended June 30, 2005, are as follows:


Capital Assets Not DepreciatedLandConstruction in Progress

Capital Assets DepreciatedBuildings & ImprovementsFurniture, Fixtures & Equipment

Total Assets

Accumulated Depreciation:Building & ImprovementsFurniture, Fixtures & Equipment

Total Accumulated Depreciation

Net Capital Assets


Capital Assets Not DepreciatedLandConstruction in Progress

Capital Assets DepreciatedBuildingsWater/Sewer SystemMachinery & Equipment

Balance07-01-04

$ 43,75014,531

65,52885,098

$ 208,907

$ 20,08970.940

Additions

$ 00

00

$ 0

$ 2,0595,500

Deletions

$ 00

00

$ 0

$ 00

Balance06-30-05

$ 43,75014,531

65,52885.098

$ 208.907

$ 22,14876.440

$ 91.029 $ 7.559 0 $ 98.588

Balance07-01-04

& 2,690375,991

32,8142,752,709

120.442

Additions

$ 00

0519,932

0

Deletions

$ 0375,991

00

17.266

Balance06-30-05

$ 2,6900

32,8143,272,641

103.176

Total Assets $3.284.646 $519.932 $393.257 $2.200.725


June 30, 2005

Page 28


Accumulated Depreciation:BuildingsWater/Sewer SystemMachinery & Equipment

Total Accumulated Depreciation

Net Capital Assets

Depreciation expense of $7,559 was charj

General GovernmentalPolice

Balance07-01-04

$ 27,6061,039,558

69.751

$1.136.915

$2r 147/731

Additions

$ 1,09468,8183.769

$ 73.681

$446,251

jed to the following governmental

$2,279$5,280

Deletions

$ 000

$ 0

function:

Balance06-30-05

$ 28,7001,108,376

73.520

$1.210.596

6. Long-Term Debt:

The following is a summary of long-term debt of the Town of Campti, Louisiana, for the year endedJune 30, 2005:

GovernmentalActivitiesSales TaxRefund

$34,2360

24,000


NotePayable

$33,3700

13.436

CapitalLease

$17,2660

17.266

BondPayable

$422,0200

5,478

Utility FundTotal

$472,6560

36.180

Balance at June 30, 2004Debt IssuedDebt Retired

Balance at June 30, 2005

Governmental Activites

As of June 30, 2005, the governmental long-term debt of the Town consisted of the followng:

Sales Tax Refund-$68.236 to be repaid for overpayment ofsales tax from Hercules, Inc. from November 2000 throughJanuary 2002. A repayment plan was made with Hercules,Inc. through the Natchitoches Tax Commission, to refundthe overpayment, dated August 13,2003, due in monthlyinstallments of $2,000, with no interest.

Balance at June 30, 2005


June 30, 2005

Business-Type Activities

As of June 30, 2005, the long-term debt from proprietary fund resources consisted of the following:

NotePavable-$38,615 noted dated February 2004, due in monthlyinstallments of $ 1,171, interest at 4%, secured by computer equipment. $ 17,934

Revenue Bonds-$448.000 Water Revenue Bonds, dated September 16,1997, due in monthly installments of $2,141, interest 4.88%, securedby revenues earned by the Town from the operation of the water system. 416,542

Total Long-Term Debt $436,476Less, Current Maturities (19.187)

Long-Term Debt, Net of Current Maturities S417.289

The annual debt service requirements to maturity for all debt outstanding as of June 30, 2005, is asfollows:

Year EndingJune 30

2006200720082009

2010-20142015-20192020-20242025-20292030-20342035-2038

Totals

Governmental ActivitiesSales Tax Refund

Principle

Business-Type ActivitiesBond & Note Payable

Principle Interest

$ 18,91413,8306,0386,33936,76246,88659,79876,26697,27074.373

$ 20,83620,05419,65919,35891,72481,60068,68852,22031,2166,349


June 30, 2005

7. Pension Plan:

The Town's employees became members of the Municipal Employees Retirement System ofLouisiana after June 30, 1996. This system is a cost-sharing, multiple-employer defined benefitpension plan administered by a separate board of trustees. Pertinent information for the retirementsystems follows:

Municipal Employees Retirement System of Louisiana (Svsteni)-

Plan Description-The System is composed of two distinct plans, Plan A and Plan B, with separateassets and benefit provisions. All employees of the municipality are members of Plan B.

All permanent employees working at least 35 hours per week who are not covered by anotherpension plan and are paid wholly or in part from municipal funds and all elected municipal officialsmeeting the requirements of the system are eligible to participate in the System. Under Plan B,employees who retire at or after age 60 with at least 10 years of creditable service or 30 years ofcreditable service, regardless of age, are entitled to a retirement benefit, payable monthly for life,equal to 2 percent 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 thatproduce the highest average. Employees who terminate with at least the amount of creditable servicestated above, and do not withdraw their employee contributions, may retire at the ages specifiedabove and receive the benefit accrued to their date of termination. The System also provides deathand disability benefits. Benefits are established or amended by state statute.

The System issues an annual publicly available financial report that includes financial statements andrequired supplementary information for the System. That report may be obtained by writing to theMunicipal Employees Retirement System of Louisiana, 7937 Office Park Boulevard, Baton Rouge,Louisiana 70809, or by calling (225) 925-4810.

Funding Policv-Under Plan B, members are required by state statute to contribute 5.00 percent oftheir annual covered salary and the Town of Campti is required to contribute at an actuariallydetermined rate. The current rate is 4.5 percent of annual covered payroll. Contributions to theSystem also include one-fourth of one percent (except Orleans and East Baton Rouge Parishes) of thetaxes shown to be collectible by the tax rolls of each parish. These tax dollars are divided betweenPlan A and Plan B based proportionately on the salaries of the active members of each plan. Thecontribution requirements of plan members and the Town of Campti are established and may beamended by state statute. As provided by Louisiana Revised Statute 11:103, the employercontributions are determined by actuarial valuation and are subject to change each year based on theresults of the valuation for the prior fiscal year. The Town of Campti's contributions to the Systemunder Plan B for the year ending June 30, 2005 were $4,422, equal to the required contributions forthe year. Contributions for the year ended June 30, 2004 were $4,960, and $4,570 for 2003.


June 30,2005

8. Litigation:

At July 30, 2005, the Town was not involved in any civil suit.

9. Flow of Funds, Restriction on Use-Water Revenue:

Under the terms of the bond indenture relating to Water Bonds, all income and revenues (hereinafterreferred to as revenue) of every nature, earned or derived from operations of the Water System, arepledged and dedicated to the retirement of said bonds, and are to be set aside into the followingspecial accounts:

Period Sinking(Dav/Month/Year) Fund

9/20/97-8/20/37 $ 1,820

9/20/98 - 8/20/37 2,141.44

Reserve Fund

Commencing with the monthfollowing completion of andacceptance of the waterworksimprovements financed withthe proceeds of the Bonds,a sum of $91 must be depositedmonthly into this fund.

A sum of $108 per month mustbe deposited into this fund until$25,697.28 has been accumu-lated therein.

Contingency Fund

Commencing with the monthfollowing completion of andacceptance of the waterworksimprovements financed withthe proceeds of the Bonds, asum of $ 123 per month mustbe deposited into this fund.

Payments continue as de-scribed above.

10. Related Parties:

For the year ended June 30, 2005, the Town had made a payment to the Mayor's wife for decorationsand food in violation of state law.

11. Compensation Paid to the Mayor and Council Members:

Donald Davis - MayorOtha BemstineCynita NashRose CalvetDavid JacksonMary Collins

$2,460580640580640480

Total


June 30, 2005

12. Receivables:

The following is a summary of receivables at June 30, 2005:

General ProprietaryClass of Receivable Fund Fund

Tax, Licenses and Permits-Franchise Tax $ 889 $ 0Sales Tax 1,810 0

Other Receivables 1,530 4.418

Total $4,229 $4.418

INTERNAL CONTROL AND COMPLIANCE

Johnson, Thomas & CunninghamCertified Public Accountants

321 Bienville StreetEddie G. Johnson, CPA - A Professional Corporation (1927-1996) Natchitoches, Louisiana 71457

(318) 352-3652Mark D. Thomas, CPA-A Professional Corporation Fax (318) 352-4447Roger M. Cunningham, CPA - A Professional Corporation

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

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITHGOVERNMENT A UDITING STANDARDS

The Honorable Donald Davis, Mayorand the Town Council

197 Edenborne StreetCampti, Louisiana, 71411

We were engaged to audit the financial statements of the governmental activities, the business-typeactivities, each major fund, and the aggregate remaining fund information of the Town of Campti as ofand for the year ended June 30, 2005, which collectively comprise the Town of Campti's basic financialstatements and have issued our report thereon dated June 16, 2006. We did not express an opinion on thefinancial statements described above because we were unable to obtain supporting documentation for thefinancial activities of the Town of Campti.

Internal Control over Financial Reporting

In planning and performing our audit, we considered the Town of Campti's internal control over financialreporting in order to determine our auditing procedures for the purpose of expressing our opinions on thefinancial statements and not to provide an opinion on the internal control over financial reporting.However, we noted certain matters involving the internal control over financial reporting and itsoperation that we consider to be reportable conditions. Reportable conditions involve matters coming toour attention relating to significant deficiencies in the design or operation of the internal control overfinancial reporting that, in our judgment, could adversely affect the Town of Campti's ability to initiate,record, process, and report financial data consistent with the assertions of management in the financialstatements. Reportable conditions are described in the accompanying Schedule of Findings andQuestioned Costs as items 2005-1, 2005-3, 2005-4, 2005-5, 2005-6, 2005-10, 2005-11, 2005-12, 2005-13,and 2005-14.

A material weakness is a reportable condition in which the design or operation of one or more of theinternal control components does not reduce to a relatively low level the risk that misstatements causedby error or fraud in amounts that would be material in relation to the financial statements being auditedmay occur and not be detected within a timely period by employees in the normal course of performingtheir assigned functions. Our consideration of the internal control over financial reporting would notnecessarily disclose all matters in the internal control structure that might be reportable conditions and,accordingly, would not necessarily disclose all reportable conditions that are also considered to bematerial weaknesses. However, we believe that all of the reportable conditions described above arematerial weaknesses.

Exhibit JPage 35

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Town of Campti's financial statements arefree 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 materialeffect on the determination of financial statement amounts. However, providing an opinion oncompliance with those provisions was not an objective of our audit, and accordingly, we do not expresssuch an opinion. The results of our tests disclosed instances of noncompliance or other matters that arerequired to be reported under Government Auditing Standards and which are described in theaccompanying Schedule of Findings and Questioned Costs as items 2005-2, 2005-7, 2005-8, 2005-9,2005-15, and 2005-16.

This report is intended solely for the information and use of the Town of Campti, the Division ofAdministration for the Office of Community Development, and the Louisiana Legislative Auditor, and isnot intended to be and should not be used by anyone other than these specified parties. However, underLouisiana Revised Statute 24:513, the report is distributed by the Legislative Auditor as a publicdocument.

Johnson. Thomas & CunninghamJohnson, Thomas & Cunningham, CPA's

June 16,2006Natchitoches, Louisiana

Exhibit KPage 36

Town of Campti, LouisianaSchedule of Prior Year Findings and Questioned Costs

Year Ended June 30, 2005

2002-1 Finding - Late submission of annual audit.Status - This is a repeat finding for 2003, 2004, and appears as Finding 2005-1 for the year.

2002-3 Finding - Payroll tax forms (941 's) not filed.Status - This is a repeat finding for 2003, 2004, and appears as Finding 2005-2 for the yearended June 30,2005.

2002-4 Finding - Water/Sewer System accounting system inadequate.Status - This is a repeat finding for 2003, 2004, and appears as Finding 2005-3 for the yearended June 30, 2005.

2003-1 Finding - Late submission of annual audit.Status - This is a repeat finding for 2004, and appears as Finding 2005-1 for the year endedJune 30, 2005.

2003-2 Finding - Minute Book not available.Status - This is a repeat finding for 2005, Legislative Auditor's Report dated September 14,2005, and appears as Finding 2005-4 for the year ended June 30, 2005.

2003-3 Finding- Untimely Payroll Tax Report.Status - This is a repeat finding for 2002, 2004, and appears as Finding 2005-2 for the yearended June 30,2005.

2003-4 Finding - Inadequate listing of assets.Status - This is a repeat finding for 2004, Legislative Auditor's Report dated September 14,2005, and appears as Finding 2005-5 for the year ended June 30, 2005.

2003-5 Finding - Overall internal controls inadequate.Status - This is a repeat finding for 2004, Legislative Auditor's Report dated September 14,2005, and appears as Finding 2005-6 for the year ended June 30, 2005.

2003-6 Finding - Inadequate collateralization of bank accounts.Status - This is a repeat finding for 2004, however this finding is cleared for the year endedJune 30, 2005.

2003-8 Finding - Unfavorable budget variance.Status - Not applicable for 2004 or 2005 as a budget was not prepared.

2004-1 Finding - Separation of duties.Status - Cleared as of June 30, 2005.

Exhibit KPage 37

Town of Campti, LouisianaSchedule of Prior Year Findings and Questioned Costs (continued)


2004-2 Finding - Untimely completion of audit.Status - This is a repeat finding for 2002, 2003, and appears as Finding 2005-1 for the yearended June 30, 2005.

2004-3 Finding - Budget not adopted for General Fund.Status - This is a repeat finding and appears as Finding 2005-7 for the year ended June 30,2005.

2004-4 Finding - Debt not approved by State Bonding Commission.Status - Cleared as of June 30, 2005.

2004-5 Finding - Noncompliance with Public Bid Laws.Status - Cleared as of June 30, 2005.

2004-6 Finding - Louisiana Compliance Questionnaire not approved.Status - This is a repeat finding and appears as Finding 2005-8 for the year ended June 30,2005.

2004-7 Finding - Inadequate records of disbursements.Status - This is a repeat finding for 2005, Legislative Auditor's Report dated September 14,2005, and appears as Finding 2005-9 for the year ended June 30, 2005.

2004-8 Finding - Lack of evidence supporting capital assets.Status - This is a repeat finding for 2005 and appears as Finding 2005-10 for the year endedJune 30, 2005.

2004-9 Finding - Late filing and payment of payroll taxes and retirement.Status - This is a repeat finding for 2005 and appears as Finding 2005-11 for the year endedJune 30, 2005.

2004-10 Finding - Inadequate collateralization of bank accounts.Status - Cleared as of June 30, 2005.

2004-11 Finding - Inconsistent billing of water and sewer charges.Status - This is a repeat finding for 2005, and appears as Finding 2005-12 for the year endedJune 30, 2005.

2004-12 Finding - Inadequate records for revenue.Status - This is a repeat finding for 2005, Legislative Auditor's Report dated September 14,2005, and appears as Finding 2005-13 for the year ended June 30, 2005.

Exhibit KPage 38

Town of Campti, LouisianaSchedule of Prior Year Findings and Questioned Costs (continued)


2004-13 Finding - Lack of control over tickets.Status - This is a repeat finding for 2005, Legislative Auditor's Report dated September 14,2005, and appears as Finding 2005-14 for the year ended June 30, 2005.

2004-14 Finding - Late filing and payment of sales tax.Status - This is a repeat finding for 2005 and appears as Finding 2005-15 for the year endedJune 30, 2005.

2004-15 Finding - Non-payment of insurance premiums.Status - This is a repeat finding for 2005 and appears as Finding 2005-16 for the year endedJune 30, 2005.

2004-16 Finding - Unidentified meter deposits.Status - This is a repeat finding for 2005 and appears as Finding 2005-17 for the year endedJune 30, 2005.

2004-17 Finding - Mayor's Court fines being held.Status - This is a repeat finding for 2005 and appears as Finding 2005-18 for the year endedJune 30, 2005.

Exhibit LPage 39

Town of Campti, LouisianaSchedule of Findings and Questioned Costs


2005-1 Late Submission of Annual Audit

Finding-

The Town is required by state law to have an annual audit performed and submitted to theState within six months after the end of its fiscal year. For the year ended June 30, 2005, theTown's books were in such a condition that the report could not be completed within therequired time-frame. Repeat finding from 2003 and 2004.

Recommendation-

The Town should institute procedures to ensure the Town's records are properly maintainedand available to the auditor within 45 days after the end of the fiscal year.

2005-2 Payroll Tax Forms & Retirement Reports not Filed

Finding-

Payroll tax forms and retirement reports were not prepared or filed in a timely manner. Repeatfinding from 2003 and 2004.

Recommendation-

The Town should ensure all required tax and retirement reports are prepared, submitted andpayments made in a timely manner.

2005-3 Water/Sewer Accounting System Inadequate

Finding-

The Town's accounting system is not being used properly. Management is not approvingeither error corrections or adjusting entries to change customer records. Individual accountshaving sizable changes between months are not investigated. Daily receipts not reconciled todata in the system. Repeat finding from 2003 and 2004.

Recommendation-

Town management should ensure: all changes made to customer's accounts are approved andrecords maintained as to why changes were made; daily cash receipts are balanced to theWater/Sewer System to ensure proper customer account balances.

Exhibit LPage 40

Town of Campti, LouisianaSchedule of Findings and Questioned Costs (continued)


2005-4 Minute Book not Available

Finding-

Louisiana Law requires that a "municipal minutes" book be maintained by the Town Clerk.For the year ended June 30, 2005, this was not done.

Recommendation-

The Town management should implement procedures to ensure that proper and legallyrequired minutes of public meetings are maintained.

2005-5 Inadequate Listing of Assets

Finding-

Louisiana Law requires the Town to maintain an inventory list of all capital assets owned bythe Town, including land, building, and equipment. For the year ended June 30, 2005, theTown did not have such a list. Repeat finding from 2004.

Recommendation-

The Town should conduct a physical inventory and prepare an asset listing showing, at aminimum, a description of the asset; year acquired; cost or estimated cost and useful life attime of acquisition.

2005-6 Overall Internal Control Inadequate

Finding-

The Town does not have adequate procedures in place to ensure that (1) disbursements areproperly supported by invoice, (2) employee time records are properly maintained, (3) policetickets are accounted for, (4) invoices are approved before payments are made, (5) receipts anddisbursements are recorded in proper fund, and (6) personnel records are kept up to date.Repeat finding from 2004.

Recommendation-

Town management should ensure there are written procedures on all day-to-day operations andthat all employees are aware of and follow the procedures.

Exhibit LPage 41



2005-7 Budget not Adopted for General Fund

Finding-

Louisiana Law requires that the Town prepare and approve a budget for the General Fund. Forthe year ended June 30, 2005, the Town did not adopt a budget for its General Fund. Repeatfinding from 2004.

Recommendation-

The Town needs to establish procedures to ensure that a properly prepared budget is presentedfor adoption and during the year, any required budget amendments are processed.

2005-8 Louisiana Compliance Questionnaire not Approved

Finding-

The Louisiana Governmental Audit Guide requires the questionnaire to be completed andapproved by the Town Council at the commencement of the audit.

Recommendation-

Procedures should be established to ensure that the questionnaire is completed, approved andgiven to the auditor at the commencement of the audit.

2005-9 Inadequate Records of Disbursements

Finding-

As stated in the audit for the year ended June 30, 2004, and the Legislative Auditor's Reportdated September 14, 2005, there were few copies of invoices to support disbursements madeduring the year.

Recommendation-

Town management should ensure that all disbursements are supported by invoices and are filedin such a manner that this information can be provided to the auditor, hi addition, theserecords of disbursement (public records) need to be maintained for the number of yearsrequired by state law.

Exhibit LPage 42



2005-10 Lack of Evidence Supporting Capital Assets

Finding-

We were unable to determine if during the year capital assets were either purchased ordisposed of due to the lack of documentation to support any changes. Repeat finding from2004.

Recommendation-

Town management should establish procedures to ensure all documentation supportingincreases in capital assets are maintained in an orderly manner. See Finding 2005-5 and 2005-9 for additional recommendations concerning capital asset and supporting documentation.

2005-11 Late Filing and Payment of Payroll Taxes

Finding-

All payroll operations are in need of review by Town management to include timely filing ofpayroll reports, on-time payment of taxes due, proper use of sign-in sheets and time cards, andmaintenance of individual payroll records. See Legislative Auditor's Report dated September14,2005.

Recommendation-

Town management should re-write the payroll procedures including time and attendancepolicies and ensure all payroll reports and payments are made on time.

2005-12 Inconsistent Billing of Water/Sewer Charges

Finding-

The monthly billings for Water/Sewer charges were not prepared each month, not all bills weresent to customers, and there was no follow-up in delinquent accounts. See LegislativeAuditor's Report dated September 14, 2005, for additional findings.

Recommendation-

Town management should establish written procedures and policies on how the billing andcollection system should apply to the Town. The Town management should establish reportingrequirements to ensure, on a monthly basis, that all requirements for billing and collection offees are being followed.

Exhibit LPage 43



2005-13 Inadequate Records for Revenues

Finding-

There were not sufficient records of revenues received as few, if any, documents weremaintained. The Town is required to maintain the public records for a minimum of three years.

Recommendation-

Town management should ensure that all documents are retained as required by law. SeeLegislative Auditor's Report dated September 14, 2005, for additional comments ondocumentation retention and recording of receipts.

2005-14 Lack of Control over Tickets

Finding-

The Town did not control the issuance of citation books to police officers as required by statelaw. See the Legislative Auditor's Report dated September 14, 2005, for additional commentsconcerning the citation books.

Recommendation-

Town management and the Campti Police Department should ensure that all requirements oflaw are being properly applied to the issuance and control of citation books.

2005-15 Late Filing and Payment of Sales Tax

Finding-

The Town did not make timely payments or file timely sales tax reports as required by thestate.

Recommendation-

Town management should establish procedures to ensure that all sales tax reports andremittance are sent to the State on or before the due date.

Exhibit LPage 44



2005-16 Non-payment of Insurance

Finding-

The Town failed to pay the Louisiana Municipal Risk Management Agency for liabilityinsurance for the year ended June 30, 2005.

Recommendation-

Town management should negotiate with the Louisiana Municipal Risk Management Agencyto resolve this matter.

2005-17 Unidentified Meter Deposits

Finding-

Customer deposits for meter deposits cannot be identified to an individual or if some of thesefunds should be applied to delinquent accounts or refunded to customers. Repeat finding from2004.

Recommendation-

Town management should develop a method to identify customer deposits.

2005-18 Mayor's Court Fines

Finding-

Funds collected by the Mayor's Court represent income to the Town and other governments.The Town is unable to determine the proper disposition between the Town and othergovernments.

Recommendation-

The Town should determine which amounts are due to the respective agencies and remit same.Repeat finding from 2004.

Exhibit MPage 45

Town of CamptiStatus of Legislative Auditor's Report

Dated September 14, 2005For the Year Ended June 30, 2005

Finding: Failure to maintain public records.Status: Unresolved.

Finding: Financial obligations. IRS lien and liability insurance.Status: Unresolved.

Finding: Budget not prepared for fiscal year 2004/2005.Status: Unresolved.

Finding: Lack of disbursement documentation and improper payments.Status: Unresolved.

Finding: Improper posting of property tax.Status: Unresolved.

Finding: Improper sales tax distribution.Status: Unresolved.

Finding: Improper billing/collecting water and sewer user fees.Status: Unresolved.

Finding: Lack of lease agreements for Town owned property.Status: Unresolved.

Finding: Improper handling & transfer of grants.Status: Unresolved.

Finding: Requirements of bond resolutions not complied with.Status: Unresolved.

Town of CaraptiCMftfrti, LA 71411

Town Response to Finding of 2005 Audit

Late Submission of Annual audit 2005-1

As of March 2005» the former Town Clerk was whired. All Town records will beproperly maintained and av«)«ble to the auditor within 43 days after flic end of thefiscal year.

Payroll Tax Forms A Retirement Reports not filed 2005-2

Payroll Us forms and retirement reports for 2003 and 2004 have been completed and filed, ak>ngwith payments. The first quarts' of 2005 was not filed on time. (See Text Above. Town Clerk)The last three quarters of 2005 was on time.

Water/Sewer Accounting System Inadequate 2005-3

In March 2005, the former Water Clerk was rchired; along with this rehiring was improvements tothe Water/Sewer accounting system. Accounts arc balance daily Any changes to customer accountsare approved by the Mayor or Council

Minute Book not Available 2005-4

Since Match 2005, minutes for fill public meetings have been kept and published in the local newspaper.

Inadequate Listing Of Assets 2005-5

A listing of all Town Assets have been established with time purchased, expected life, description of properly andcost and value of assets,

Overall Internal Control Inadequate 2005-0

The Town has a Purchase Order and Requisition system in place. All employees are required to clock mand out of work. Tne mayor signs off cm all invoices. Since March 2005, all receipts and disbursements arerecorded In the proper fund The Mayor's Court Clerk ensures thai all police tickets arc accounted for.

Budget not Adopted for General Fund 2005-7The Town has establish procedure* to ensure that a properly prepared budget is presented for adoption duringthe year. A Genera) fund budget was adopted for the fiscal 2006.

Louisiana Compliance Questionnaire not Approve 2005-8

Procedures have been established to ensure thai the questionnaire will be completed, approved andgiven to the auditor at the bcginniDK of the audit

Inadequate Records of Disbursements 2005-9

The Town has an accounting system in place. The mayor signs off cm alt invoices, these records willbe kept as required by Louisiana Law, Our records will be available to the auditor.

Lack of Evidence Supporting Capitol Assets 2005-10

The Town now has a current list of all Capital Assets on file.

Late Filing and Payment of Payroll Taxes 2005-11

Payroll Taxes have been filed and paid on time since March 2005. A payment plan has been negotiated with tncIRS to pay beck taxes.

Inconsistent Billing of Water/Sewer Charges 2005*12

Town of Campti water bUls are mailed out around the 3rt of each month. Late fees aw added to unpaidaccounts at 8:00 a,m. on the 21" of each month. Accounts not paid by the 26* of the month are added10 the disconnect list and are charged a $20.00 reconnect fee. Bills are not adjusted unless there was anerror in the meter reading or approval by the Mayor, Receipts are reconciled to data in the system daily.

Inadequate Records for Revenues 2005-13

There is an invoice and purchase order for anything that the Town purchases. The Mayor signs off on thesedocuments. As of March 2005, All Town documents ate stamped of date received and filed in an appropriatemanner. These documents will be maintained as required by law.

Lack of control over Tickets 2005-14

As of now, all citation books are issued by the Town Clerk. Citation books are to be returned to theTown Cleric before any other citation books are issued to The Police Department

Late Filing and Payment of Sales Tax 2005-15

All delinquent Sales Taxes have been paid. Sales Tax Reports and Remittance are sent to the Statein a timely manner now.

Non-payment of Insurance 2005-16

fowo management has negotiated with the Louisiana Municipal Risk Management Agency to resolve this matterFhe Town now has liability insurance.

Unidentified Meter Deposit 2005-17

After getting software system on line, there is a listing of customer accounts oa file.

Mayor's Court Fines 2005-18

Fines for traffic citations are being collected and distributed to the following agencies: Ware Vouch Center,North Louisiana Crime Laboratory Commission, Louisiana Commission on Law Enforcement, Court CaseManagement Information Systems before the 10* of each month

Summary

The Town of Campti has had procedures and policies to ensure compliance of State Laws. This present Councilcan't explain why these procedures and policies weren't followed during tbe fiscal years 2002*2003,2003-2004and the first quarter of 2005. We assure you that these procedures will be followed until the end of this term.

town of campti - lla default...

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