village of sicily island - app.lla.state.la.usfile/00000ab2.pdfvillage of sicily island, louisiana...

VILLAGE OF SICILY ISLAND, LOUISIANA

ANNUAL FINANCIAL STATEMENTS

AS OF JUNE 30,2006AND FOR THE YEAR THEN ENDED

U nder 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 /- 3 /<- Q 7

SILASCERTIFIED PUBLIC ACCOUNTANTS and ADVISORS


Annual Financial StatementsAs of and for the Year Ended June 30,2006With Supplemental Information Schedules

CONTENTS

Statement Page

Independent Auditor's Report 1-2

Required Supplemental Information (Part I)

Management's Discussion and Analysis 3-7

Basic Financial Statements

Government-Wide Financial Statements:

Statement of Net Assets A 8

Statement of Activities B 9

Fund Financial Statements:

Governmental Funds:

Balance Sheet C 10

Reconciliation of the Governmental Funds Balance Sheet tothe Government-Wide Financial Statement of Net Assets D 11

Statement of Revenues, Expenditures, and Changes inFund Balances E 12

Reconciliation of the Statement of Revenues, Expenditures,and Changes in Fund Balances of Governmental Fundsto the Statement of Activities F 13

Proprietary Funds:

Statement of Net Assets G 14

Statement of Revenues, Expenses, and Changes in Net Assets H 15

Statement of Cash Flows I 16

Notes to the Financial Statements 17-27

Required Supplemental Information (Part II)

Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual - General Fund 28

Notes to the Required Supplementary Information 29

Statement Page

Reports on Internal Control and Compliance

Report on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of theBasic Financial Statements Performed in Accordance withGovernment Auditing Standards 30-31

Current Year Findings, Recommendations, and Corrective Action Plan — 32

Status of Prior Audit Findings 33

SILAS SIMMONS LLP

CERTIFIED PUBLIC ACCOUNTANTS <z/z2 ADVISORS 209 N. Commerce StreetP.O. Box 1027Natchez, Mississippi 39121-1027Telephone: 601.442.7411Fax: 601.442.8551

www.silassimmons.com

INDEPENDENT AUDITOR'S REPORT

The Honorable Art Goode, Mayorand Members of the Board of AldermenVillage of Sicily IslandSicily Island, Louisiana

We have audited the accompanying financial statements of the governmental activities, the business-typeactivities, each major fund, and the aggregate remaining fund information of Village of Sicily Island,Louisiana, as of and for the year ended June 30, 2006, which collectively comprise the Village's basicfinancial statements, as listed in the Table of Contents. These financial statements are the responsibility ofVillage of Sicily Island, Louisiana's management. Our responsibility is to express opinions on thesefinancial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amountsand disclosures in the financial statements. An audit also includes assessing the accounting principlesused and significant estimates made by management as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, the business-type activities, each major fund,and the aggregate remaining fund information of Village of Sicily Island, Louisiana as of June 30, 2006,and the respective changes in financial position and cash flows, where applicable, thereof for the yearthen ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated December 7,2006,on our consideration of Village of Sicily Island, Louisiana's internal control over financial reporting andour test of its compliance with certain provisions of laws, regulations, contracts and grant agreements,and other matters. The purpose of that report is to describe the scope of our testing of internal controlover financial reporting and compliance and the results of that testing, and not to provide an opinion onthe internal 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 assessing theresults of our audit.

s American Institute of CPAs, Miwiwppi Society of CPAj LMIMMIW Society of CPAj

The management's discussion and analysis and budgetary comparison information on pages 3 through 7and pages 28 and 29, are not a required part of the basic financial statements but are supplementaryinformation required by accounting principles generally accepted in the United States of America. Wehave applied certain limited procedures, which consisted principally of inquiries of managementregarding the methods of measurement and presentation of the required supplementary information.However, we did not audit the information and express no opinion on it.

Natchez, MississippiDecember 7,2006

Required Supplemental Information (Part I)


MANAGEMENT DISCUSSION AND ANALYSIS (MD&A)

YEAR ENDED JUNE 30,2006

INTRODUCTION

The management discussion and analysis (MD&A) of the Village of Sicily Island, Louisiana's financial performanceprovides an overall narrative review of the Village's financial activities for the year ended June 30,2006. The intent of thisdiscussion and analysis is to look at the Village's performance as a whole; readers should also review the notes to thebasic financial statements and the financial statements to enhance their understanding of the Village's financialperformance. The Village has elected not to present data comparing fiscal year 2006 to 2005.

The Village of Sicily Island, Louisiana is located in northeast Louisiana along Highway 15. The population, according tothe 2000 census, is 455. The local economic base is driven mainly by farming.

FIN ANCIAL HIGHLIGHTS

• Assets exceeded liabilities by $2,646,065.

• Total revenues exceeded expenses by $345,449.

• The total capital assets were $2,725,698 and debt associated with capital assets totaled $264,472.

OVERVIEW OF FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the Village of Sicily Island, Louisiana's basicfinancial statements. The Village's basic financial statements comprise three components: 1) government-widestatements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains othersupplementary information in addition to the basic financial statements.

Government-wide financial statements. The government-wide financial statements are designed to provide readerswith a broad overview of the Village's finances, in a manner similar to a private-sector business.

The statement of net assets presents information on all of the Village's assets and liabilities, with the difference betweenthe two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whetherthe financial position of the Village is improving or deteriorating.

The statement of activities presents information showing how the Village's net assets changed during the most recentfiscal year.

The government-wide financial statements outline functions of the Village that are principally supported by propertytaxes and intergovernmental revenues (governmental activities). Fixed assets and related debt is also supported by taxesand intergovernmental revenues.

The government-wide financial statements can be found on pages 8 and 9 of this report.

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources thathave been segregated for specific activities or objectives.

The basic governmental fund financial statements can be found on pages 10 through 16 of this report.




OVERVIEW OF FINANCIAL STATEMENTS - continued

Notes to the financial statements. The notes provide additional information that is essential to a full understanding ofthe data provided in the government-wide and fund financial statements. The notes to the financial statements can befound on pages 17 through 27 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Net assets serve as a useful indicator of a government's financial position. Assets exceeded liabilities by $2,646,065 as ofJune 30,2006.

Net Assets for the period ending June 30,2006

The following is a condensed statement of the Village of Sicily Island, Louisiana's net assets as of June 30,2006:

Governmental Business-TypeActivities Activities Total

Current Assets $ 198,129 $ 61,184 $ 259,313Noncurrent Assets 603,309 2,122,389 2,725,698

Total Assets $ 801,438 $ 2,183,573 $ 2,985,011

Current Liabilities $ 32,979 $ 61,967 $ 94,946Long-term Liabilities : 244,000 244,000

Total Liabilities $ 32.979 $ 305,967 $ 338,946

Net AssetsInvestment in capital assets, net of related debt $ 603,309 $ 1,857,917 $ 2,461,226Restricted for debt service - 8,328 8,328Unrestricted 165,150 11,361 176.511

Total Net Assets $ 768,459 $ 1,877,606 $ 2,646.065

The following is a summary of the statement of activities for the year ended June 30, 2006:

Governmental B usiness-Typ eActivities Activities Total

Revenues:Program revenues $ 637,684 $ 271,982 $ 909,666General revenues and transfers 91,743 (22,215) 69,528

Total revenues and transfers $ 729,427 $ 249,767 $ 979,194




GOVERNMENT-WIDE FINANCIAL ANALYSIS - continued

Expenses:

General and administrativePublic safety:

Police

FirePublic works - sanitation

Interest expenseUtility expense

Total expenses

Decrease in net assets

Net assets June 30, 2005

Net assets June 30, 2006

Governmental Business-Type

Activities Activities

$ 191,405

60,871

15,99734,978

345

$ 303,596

$ 425,831

342,628

$ 768,459

Total

$$

$

$

$

-

-

--

'

330,149

330,149

(80,382)

1,957,988

1,877,606

$ 191,405

60,871

15,997

34,978

345

330,149

$ 633,745

$ 345,449

2,300,616

$ 2,646,065

GOVERNMENTAL ACTIVITIES

The Village of Sicily Island, Louisiana's governmental activities consist of general government public safety (police andfire), public works, and payment of interest expense of long-term debt. Since the revenues generated by the generalgovernment (e.g. fines, property taxes, garbage fees, occupational licenses, franchise taxes, and federal and state grants)were not sufficient to pay all of the expenses of these activities, cash of $23,178 was transferred from the business typeactivities (utility fund) to help pay the costs.

The following presents in graph the information from the Statement of Activities for Governmental Activities:

Governmental Activities - Revenues

16%

ffl Fines $121,462

• Charges for services $58,284

Q Grants $457.938

O Taxes $16,181

IV Other $52,384

ffl Transfers in $23,178




GOVERNMENTAL ACTIVITIES - continued

Governmental Activities - Expenses

10% 1%

49%

IB General Government $191,405

m Police $60,871

DFire $15,997

(3 Sanitation $34,978

• Interest Expense $345

The nolcs to the financial statements should be read to have a full understanding of the data in the government-widefinancial statements.

Business-Type Activities

The Business-Type Activities of the Village are those revenues resulting from fees charged customers. The Village hasthree Business-Type Activities, (water, gas, and sewer) which are accounted for in the utility funds.

The following presents in graphs the information from the Statement of Activities for the Business-Type Activities:

Business-Type Activities - Revenues

34%58%

Business-Type Activities - Expenses

13%

31%

QWater $138,517

• Sewer $54,086

D Gas $137,546

01 Transfers $23,178

18%


MANAGEMENT DISCUSSION AND ANALYSIS (MD&A>


GOVERNMENTAL ACTIVITIES - continued

The notes to the financial statements should be read to have a full understanding of the data in the government-widefinancial statements.

Comments on General Fund Budget

The Village's budget was not revised during the last year. The budgeted expenditures were $276,833 compared to totalexpenditures of $748,727. Revenues were budgeted at $250,950 compared to total revenues of $706,248. Additionalinformation is available on Pages 29 and 30 of Part II of these financial statements.

CAPITAL ASSETS AND DEBT

As of June 30, 2006, the Village had $603,309 invested in capital assets in the general fund and $1,857,917 in theproprietary fund. This year there were additions of $460,790 in the general fund. The following capital assets werepurchased in this year:

General fund:1. Computer $ 2,7622. Ball park fence 6,5553. Water fountain 2,3554. Police van 2,0005. Ball park red dirt 2,8486. Street improvements 444,270

$ 460.790

At the end of the current fiscal year, the Village had outstanding bonded debt of $254,000. Principle payments of $10,000are due to be paid during the next fiscal year. This debt was incurred in 1981 with an original balance of $393,000 with aninterest rate of 5%.

REQUEST FOR INFORMATION

This financial report is designed to provide citizens, taxpayers, customers, and creditors with a general overview of theVillage's finances and to show the Village's accountability for the money it receives. Any questions about this report orrequest for additional information may be directed to Alice Perry, Town Clerk, Village of Sicily Island, Louisiana.

Basic Financial Statements

Government-Wide Financial Statements


STATEMENT OF NET ASSETS

JUNE 30,2006

8STATEMENT A

ASSETSCash and cash equivalentsReceivables (net of allowances for uncollectibles)Restricted assetsAccrued interest incomeCapital assets (net)

Total assets

LIABaiTIESAccounts, salaries, and other payablesPayable from restricted assetsMeter depositsCompensated absences payableBonds payable/ due within one yearBonds payable, beyond one year

Total liabilities

NET ASSETSInvested in capital assets, net of related debtRestricted for debt serviceUnrestricted

Total net assets

Business-Governmental Type

Activities Activities

$

$

$

$

$

$

162,963 $ 27,675 $35,166 24,949

8,328232

603309 2,122,389

801,438 S 2.183,573 $

32,237 $ 4,538 $10,47236,957

74210,000

244,000

32,979 S 305.967 $

603309 $ 1,857,917 $8328

165,150 11,361

768,459 $ 1.877.606 $

Total

190,63860,1158,328

2322,725,698

2.985,011

36,77510,47236,957

74210,000

244,000

338.946

2*461,2268328

176,511

2,646.065

The accompanying notes are an integral part of this financial statement

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Fund Financial Statements

Governmental Funds


BALANCE SHEETGOVERNMENTAL FUNDS

JUNE 30,2006

10STATEMENT C

ASSETSCash and cash equivalentsReceivables (net of allowances for uncollectibles)

Total assets

Maior Funds

General Fund

$ 162,96235,166

$ 198,128

CapitalProject Fund

$ 1

$ 1

TotalGovernmental

Funds

$ 162,96335,166

$ 198,129

LIABILITIES AND FUND BALANCESLiabilities:Accounts, salaries, and other payables

Total liabilities

Fund balances:Unreserved, reported in:General Fund

Total fund balances

Total liabilities and fund balances

32,237 $_

32.237 $_

165,891 $_

165,891 $_

198.128 $_

32,237

32,237

165,892

165,892

198,129

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

11STATEMENT D


RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEETTO THE GOVERNMENT-WIDE FINANCIAL STATEMENT OF NET ASSETS

JUNE 30,2006

Amounts reported for governmental activities in the Statement of Net Assets are different because:

Fund Balances, Total Governmental Funds (Statement C) $ 165,892

Capital assets used in governmental activities are not financialresources and, therefore, are not reported in the governmental funds 603,309

Long-term liabilities including bonds payable are not due andpayable in the current period and, therefore, are not reportedin the governmental funds.Compensated absences (742)

Net Assets of Governmental Activities (Statement A) $ 768.459


REVENUESTaxes:Ad valoremFranchise

Occupational licensesBeer taxIntergovernmental revenues:State and local

Fines and forfeituresCharges for servicesInvestment earningsOther revenues

Total revenues

EXPENDITURESGeneral governmentPublic safety:PoliceFire

Public works:Sanitation

Capital outlayDebt service:PrincipalInterest

Total expenditures

Excess (deficiency) of revenuesover (under) expenditures

OTHER FINANCING SOURCES OJSES1Transfers in

Total other financing sources (uses)

Net change in fund balance

Fund balances - beginning

Fund balances - ending

ISLAND, LOUISIANA

12STATEMENT E

RES, AND CHANGES IN FUND BALANCESNTAL FUNDS

41

$

?

$

$

$

$

$

$

$

)ED JUNE 30, 2006

Major FundsCapital

General Fund Project Fund

10,247 $5,934

15,227964

13,668 444,270121,46258,2843,551

32,642

261.979 $ 444,270

188,035 $

49,95312,747

33,52716,520 444,270

3,331345 $

304,458 $ 444,270

f42,479) $

23,177 $ 1

23,177 $ 1

(19,302) $ 1

185,193

165,891 S 1

TotalGovernmental

Funds

$ 10,2475,934

15,227964

457,938121,46258,2843,551

32,642

$ 706,249

$ 188,035

49,95312,747

33,527460,790

3 31$ 345

$ 748,728

$ f42,479}

$ 23,178

$ 23,178

$ (19,301)

185,193

$ 165.892


13STATEMENT F


FOR THE YEAR ENDED JUNE 30,2006

Amounts reported for governmental activities in the Statement of Activities are different because:

Net Change in Fund Balances, Total Governmental Funds (Statement E) $ (19,301)

Governmental funds report capital outlays as expenditures. However, in thestatement of activities the cost of those assets is allocated over their estimateduseful lives and reported as depreciation expense. This is the amount by whichcapital outlays exceeded depreciation in the current period. 440,356

The issuance of long-term debt (bonds, leases, etc.) provides current financialresources to governmental funds, while the repayment of the principal oflong-term debt consumes the current financial resources of governmentalfunds. Neither transaction, however, has any effect on net assets. Also,governmental funds report the effect of issuance costs, premiums, discounts,and similar items when debt is issued, whereas these amounts are deferredand amortized in the statement of activities. This amount is the net effectof these differences in the treatment of long-term debt and related items. 3,331

Some expenses reported in the governmental funds do not require the use ofcurrent financial resources and, therefore, are not reported as expendituresin the statement of activities. 1,443

Change in Net Assets of Governmental Activities (Statement B) S 425.831


Proprietary Funds

14STATEMENT G


STATEMENT OF NET ASSETSPROPRIETARY FUNDS

JUNE 30,2006

Major Fund

ASSETSCurrent assets

Cash and cash equivalentsReceivables (net of allowancesfor uncollectibles)

Accrued interest incomeTotal current assets

Noncurrent assetsRestricted assetsCash and cash equivalentsCapital assets (net ofaccumulated depreciation)

Total noncurrent assets

Total assets

LIABILITIESCurrent liabilitiesAccounts, salaries, and otherpayables

Meter depositsTotal current liabilities

Current liabilities payablefrom restricted assetsAccrued interest payable fromrestricted assets

Current portion of long-term debtTotal current liabilitiespayable from restrictedassets

Noncurrent liabilitiesLong-term debt

Total noncurrent liabilities

Total liabilities

NET ASSETSInvested in capital assets,net of related debt

Restricted for debt servicesUnrestricted

Total net assets

Business-Type Activities - Enterprise Fund

$

$

$

$

$

$

$

$

$

$$

$

$

$

Water

27,515 $

9,152232

36,899 ft

- $

805,873805,873 $

842.772 ft

2,459 $36,95739,416 $

- $-

- $

- $- $

39,416 ft

805,873 $.

(2,517]803,356 ft

Sewer

114

6,087-

6,201

8,328

1,013,8611,022,189

1.028390

61-

61

10,47210,000

20,472

244,000244,000

264.533

749,3898,3286,140

763.857

$

$

$

$

$

$

$

$

$

$$

$

$

$

Gas

46

9,710-

9,756

302,655302,655

312.411

2,018-

2,018

.

_

2,018

302,655-

7,738310393

$

$

$

$

$

$

$

$

$

$?

$

$

$

Totals

27,675

24,949232

52,856

8,328

2,1223892,130,717

2.183.573

4,53836,95741,495

10,47210,000

20,472

244,000244,000

305,967

1,857,9178,328

113611,877.606



STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETSPROPRIETARY FUNDS


15STATEMENT H

Malor Fund

OPERATING REVENUESCharges for servicesOther operating revenue

Total operating revenues

OPERATING EXPENSESSalaries and payroll taxesContract servicesLegal and accountingMaterials and suppliesRepairs and maintenanceInsuranceDepreciationUtilities and telephoneBad debtsMiscellaneous

Total operating expenses

Operating income (loss)

Nonoperating revenues(expenses)

Interest earningsInterest expense

Total nonoperating revenues(expenses)

Income before transfersTransfer in/(out)

Change in net assets

Total net assets - beginning

Total net assets - ending

Business-Tvpe Activities - Enterprise FundWater Sewer

$

$

$

$

$

$

$

$

$

$

73,719 $1,899

75,618 $

38,087 $5,0884,5687,884

12,5552,890

43,78213,9032,0987,662

138,517 $

(62,899} $

779 $-

779 $

(62,120) $21,069

(41,051) $

844,406

803.355 $

50,418 $1,008

51,426 $

7,751 $-----

29,1761,9981,286

27

40,238 $

11,188 $

184 $(13,848)

(13,664) $

(2^76) $(22,392)

(24,868) $

788,727

763,859 S

Gas

142,465 $2,473

144,938 $

7,751 $--

110,012305

2016,581

-2,702

175

137,546 $

7,392 $

- $-

- $

7,392 $(21,855)

(14,463) $

324,855

310392 $

Totals

266,6025,380

271,982

53,5895,0884,568

117,89612,8602,910

89,53915,9016,0867,864

316,301

(44,319)

963(13,848)

(12,885)

(57,204)(23,178)

(80382)

1,957,988

1.877.606



STATEMENT OF CASH FLOWSPROPRIETARY FUNDS


16STATEMENT I

Cash Flows From Operating ActivitiesReceipts from customers and usersPayments to suppliersPayments to employees

Net cash provided f operating activities

Cash Flows From Noncapital Financing ActivitiesTransfers to other funds

Net cash used for noncapital financing activities

Cash Flows From Capital and Related Financing ActivitiesPrincipal paid on capital debtInterest paid on capital debt

Net cash used for capital andrelated financing activities

Cash Flows from Investing ActivitiesInterest on temporary investments

Net cash provided by investing activities

Net decrease in cash and cash equivalents

Cash and cash equivalents, beginning of year

Cash and cash equivalents, end of year

Reconciliation of Operating Income to Net CashProvided (Used) By Operating Activities

Operating loss

Adjustments to Reconcile Operating IncomefLossl to Net Cash Provided by Operating Activities

DepreciationChange in assets and liabilities(Increase) decrease in:Accounts receivable - customers

Increase (decrease) in:Accounts payableCustomer deposits

Total adjustments

Net cash provided by operating activities

Enterprise FundUtility Fund

$ 268,883(176,870)(50,615141398

(23.178)(23.178)

(10,000)(13,2491

(23.2491

989989

(4,040)

40.043

36.003

(443191

89,539

(3,099)

(4,932)4.209

85.717

41398


Notes to the Financial Statements

17


NOTES TO THE FINANCIAL STATEMENTS


INTRODUCTION

Village of Sicily Island, Louisiana is a municipal corporation governed by an elected mayor. The Village wasincorporated August 21,1995 under provisions of the Lawrason Act. The purpose of the municipality is to provide utilityservices, public safety (police and fire), sanitation, and general administrative services. The Board of Aldermen consistsof three elective members and they are paid $554 per month. The Village is located in the northeastern portion ofCatahoula Parish, Louisiana. The population of Sicily Island is 455 persons. The Village has 5 hill-time employees.Village of Sicily Island, Louisiana has approximately 502 utility customers.

GASB Statement No. 14, The Reporting Entity, established criteria for determining the governmental reporting entity andcomponent units that should be included within the reporting entity. Under provisions of this Statement, themunicipality is considered a primary government since it is a special purpose government that has a separately electedgoverning body, is legally separate, and is fiscally independent of other state or local governments. As used in GASBStatement No. 14, fiscally independent means that the municipality may, without the approval or consent of anothergovernmental entity, determine or modify its own budget, levy its own taxes or set rates or charges, and issue bondeddebt

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets)report information on all of the nonfiduciary activities of the government. For the most part, the effect of interfundactivity has been removed from these statements. Governmental activities, which normally are supported by taxesand intergovernmental revenues, are reported separately from business-type activities, which rely to a significantextent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment areoffset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted tomeeting the operational or capital requirements of a particular function or segment. Taxes and other items notproperly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds and proprietary funds. Major individualgovernmental funds and major individual enterprise funds are reported as separate columns in the fund financialstatements.

B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and theaccrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned andexpenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes arerecognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue assoon as all eligibility requirements imposed by the provider have been met.

18




NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

B. Measurement focus, Basis of Accounting, and Financial Statement Presentation (continued)

Governmental fund financial statements are reported using the current financial resources measurement focus andthe modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.Revenues are considered to be available when they are collectible within the current period or soon enough thereafterto pay liabilities of the current period. For this purpose, the government considers revenues to be available if they arecollected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liabilityis incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related tocompensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to besusceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue itemsare considered to be measurable and available only when cash is received by the government.

The municipality reports the following major governmental funds:

The General Fund is the mxrnkipality's primary operating fund. It accounts for aU financial resouxces of thegeneral government, except those required to be accounted for in another fund.

The Capital Project Fund is used to account for revenue generated by capital contributions. The proceeds arethen passed to the other funds, depending on the project at hand.

The municipality reports the following major proprietary funds:

The Utility Fund is used to account for the provision of gas and water utilities, as well as sewer services toresidents of the Village and some residents of the Parish. All activities necessary to provide such services areaccounted for in this fund, including, but not limited to, administration, operations, maintenance, financing, andrelated debt service and billing and collection.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally arefollowed in both the government-wide and proprietary fund financial statements to the extent that those standards donot conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also havethe option of following subsequent private-sector guidance for their business-type activities and enterprise funds,subject to this same limitation. The government has elected not to follow subsequent private-sector guidance.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.Elimination of these charges would distort the direct costs and program revenues reported for the various functionsconcerned.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, orprivileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internallydedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenuesinclude all taxes.

19





B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenuesand expenses generally result from providing services and producing and delivering goods in connection with aproprietary fund's principal on-going operations. Operating expenses for enterprise funds include the cost ofsales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses notmeeting this definition are reported as nonoperating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the municipality's policy to use restrictedresources first, then unrestricted resources, as they are needed.

C Deposits and Investments

The municipality's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-terminvestments with original maturities of six months or less from the date of acquisition. State law allows themunicipality to invest in collateralized certificates of deposit, government-backed securities, commercial paper, thestate sponsored investment pool, and mutual funds consisting solely of government-backed securities.

D. Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of thefiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or"advances to/from other funds" (i.e., the noncurrent portion of interfund loans). All other outstanding balancesbetween funds are reported as "due to/from other funds". Any residual balances outstanding between thegovernmental activities and business-type activities are reported in the government-wide financial statements as"internal balances".

All trade and property tax receivables are shown net of an allowance for uncollectible accounts. Uncollectibleamounts due for ad valorem taxes and customer's utility receivables are recognized through the establishment of anallowance account at the time information becomes available, which would indicate the uncollectibility of theparticular receivable.

The Village annually levies ad valorem taxes in accordance with state statute for the fiscal year ended June 30. Taxbills are prepared and delivered in October with payment due from the date of receipt to the last day of February.Because of the due dates noted previously, ad valorem taxes are not considered to be available resources of the fiscalyear to which they apply and are, therefore, not accrued at the end of the fiscal year.

The Village bills and collects its own property taxes using the assessed values determined by the Tax Assessor ofCatahoula Parish.

For the year ended June 30, 2006, taxes of 7.80 mills were levied on property with assessed valuations totaling$1,620,540, after abatements and exemptions and were dedicated as follows:

General corporate purposes 7.80 mills

Total taxes levied were $10,247

20




NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

E. Inventories

For both governmental and proprietary funds, purchase of various operating supplies are regarded as expendituresor expenses at the time purchased, and inventories of such supplies (if any) are not recorded as assets at the close ofthe fiscal year. For the year ending June 30, 2006, these amounts were considered to be immaterial

F. Restricted Assets - Utility Fund

Restricted assets represent resources that must be expended in a specific manner. Restrictions of this nature areimposed by various contractual obligations including grant agreements and bond covenants. In situations where it ispermissible to spend restricted resources, the Village typically depletes the available restricted resources beforeconsuming unrestricted resources. Restricted assets were applicable to the following at June 30,2006:

Depreciation Fund $ 964Reserve Fund 893Sinking Fund 6,471

| 8.328

G. Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (i.e., roads, bridges, sidewalks, andsimilar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are capitalized at historical cost or estimated cost if historical cost is notavailable. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation.The municipality maintains a threshold level of $500 or more for capitalizing capital assets used in the governmentalfunds.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets livesare not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurredduring the construction phase of capital assets of business-type activities is included as part of the capitalized value ofthe assets constructed.

All capital assets, other than land, are depreciated using the straight-line method over the following useful lives:

Description Estimated LivesGovernmental activities:Land improvements 30 yearsBuildings 40 yearsVehicles 5-15 yearsMachinery and equipment 5-15 years

21



FOR THE YEAR ENDED JUNE 30, 2006


G. Capital Assets (continued)

Description Estimated LivesBusiness-type activities/Enterprise Fund:Buildings 25 yearsInfrastructure 20-50 yearsMachinery and equipment 10-20 yearsVehicles 5 years

H. Compensated Absences

Each full-time employee is credited with one day of vacation leave for each month worked. The employee's vacationleave will begin to accumulate upon finishing a six-month probation period. Employees are allowed five days of sickleave up until his or her first anniversary date arrives. After his or her first anniversary, the employee shall earn sickleave at the rate of ten days per anniversary date. In accordance with GASB Statement No. 16, the Village hadaccrued compensated absences of $742 as of June 30,2006.

I. Long-Term Obligations

In the government-wide financial statements, and the proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities,business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well asissuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bondspayable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferredcharges and amortized over the term of the related debt.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bondissuance costs, during the current period. The face amount of the debt issued is reported as other financing sources.Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances arereported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, arereported as debt service expenditures.

J. Fund Equity

In the fund financial statements, governmental funds report reservations of fund balance for amounts that are notavailable for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations offund balance represent tentative management plans that are subject to change.

K. Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the UnitedStates of America requires management to make estimates and assumptions that affect the reported amounts of assetsand liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reportedamounts of revenues, expenditures, and expenses during the reporting period. Actual results could differ from thoseestimates.

22





L. Reconciliations of Government-Wide and Fund financial Statements

Explanation of certain differences between the governmental fund balance sheet and the government-wide statementof net assets is presented in Statement D of the basic financial statements. Explanation of certain differences betweenthe governmental fund statement of revenues, expenses, and changes in fund balances and the government-widestatement of activities is presented in Statement F of the basic financial statements.

NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

Budgets and Budgetary Accounting

The Village follows procedures established by Louisiana Revised Statute in the preparation and adoption of its annualoperating budgets as follows:

1. The Village prepares a proposed budget and submits same to the Mayor and Board of Aldermen no later thanfifteen days prior to the beginning of each fiscal year.

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

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

4. After the holding of the public hearing and completion of all action necessary to finalize and implement thebudget, the budget is adopted through passage of an ordinance prior to the commencement of the fiscal year forwhich the budget is being adopted.

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

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

7. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgetamounts are as originally adopted, or as amended from time to time by the Board of Aldermen.

NOTE 3 - CASH AND CASH EQUIVALENTS

At June 30,2006, the municipality had cash and cash equivalents (book balances) totaling $198,965 as follows:

Demand deposits $ 22,688Interest-bearing demand deposits 41,957Time deposits 134,099Cash on hand 222

Total S 198.966

23




NOTE 3 - CASH AND CASH EQUIVALENTS (continued)

These deposits are stated at cost, which approximates market Under state law, these deposits (or the resulting bankbalances) must be secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank. Themarket value of the pledged securities plus the federal deposit insurance must at all times equal the amount on depositwith the fiscal agent These securities are held in the name of the pledging fiscal agent bank in a holding or custodialbank that is mutually acceptable to both parties.

At June 30, 2006, the municipality had $631,477 in deposits (collected bank balances). These deposits are secured fromrisk by $200,000 of federal deposit insurance and $335312 of pledged securities held by the custodial bank in the name ofthe fiscal agent bank (GASB Category 3). On June 30,2006, the Village received a grant totaling $396,259, which causedthem to be under collateralized by $96,165. On the same day, checks were written to cover the full amount Without thegrant, the Village would have been over collateralized by $300,094.

Even though the pledged securities are considered uncollateralized (Category 3) under the provisions of GASB Statement3, R.S. 39:1229 imposes a statutory requirement on the custodial bank to advertise and sell the pledged securities within10 days of being notified by the municipality that the fiscal agent has failed to pay deposited funds upon demand.

NOTE 4 - RECEIVABLES

The receivables of $60,115 at June 30, 2006, were as follows:

___ _ Class of ReceivableTaxes:Ad valoremSales and use

AccountsOtherAllowance for uncollectibles

Total

GeneralFund

EnterpriseFund Total

750 $

$

5,14315,67314,215

(615)35.166 S

-34,694

-(9,745)24.949

7505,143

50,36714,215

S 60.115

Uncollectible amounts due for customers' utility receivables are recognized as bad debts through the establishment of anallowance account at the time information becomes available which would indicate the uncollectibility of the receivable.

NOTE 5 - INTERFUND RECEIVABLES/PAYABLES

There were no interfund receivables or payables at June 30,2006.

NOTE 6 - CAPITAL ASSETS

Capital assets and depreciation activity as of and for the year ended June 30,2006, were as follows:



FOR THE YEAR ENDED JUNE 30, 2006

24

NOTE 6 - CAPITAL ASSETS (continued)

Governmental activities:Capital assets, not being depreciatedLand

Total capital assets, not beingdepreciated

Capital assets being depreciatedBuildingsLand improvementsMachinery and equipmentStreet improvementsVehicles

Total capital assets beingdepreciated

Less accumulated depreciation for:Buildings and structuresImprovements other than buildingsMachinery and equipmentStreet improvementsVehicles

Total accumulated depreciationTotal capital assets beingdepreciated, net

Business-type activities:Capital assets, not being depreciatedLand

Total capital assets, not beingdepreciated

Capital assets being depreciatedBuildingsInfrastructureMachinery, equipment, and vehicles

Total capital assets beingdepreciated

Less accumulated depreciation for:BuildingsInfrastructureMachinery, equipment, and vehicles

Total accumulated depreciation $.Total capital assets beingdepreciated, net

Beginning

$

$

$

$

$

$

$

$

$

$

$

$

$

9

Balance

13,000

13,000

69,00913,92086,424

-221,386

390,739

(21,448)(503)

(38,569)

(180,266)(240,786)

162,953

39,280

39,280

24,3833,038,060

181,667

3,244,110

(22,183)(882,653)(166,625)

(1,071,461)

2.211.929

Increases

$

?

$

?

$

?

$

$

*

$

?

$

?

$

9,4035,117

444,2702,000

460,790

(2,107)-

(5,2%)

(13,031)(20,434)

440,356

-_

(551)(81,127)(7,862)

(89,540)

(89,540)

Decreases

$

$

$

$

$

$

$

$

$

$

$

$

$

$

- $

- $

- $----

- $

- $--_

- $

- $

- $

- $

- $-_

- $

- $-.- $

- $

EndingBalance

13,000

13,000

69,00923,32391,541

444,270223,386

851,529

(23,555)(503)

(43,865)

(193,297)(261,220)

603309

39,280

39,280

24^833,038,060

181,667

3,244,110

(22,734)(963,780)(174,487)

(1,161,001)

2.122389

25




NOTE 6 - CAPITAL ASSETS (continued)

Depreciation expense of $20,434 for the year ended June 30,2006, was charged to the following governmental functions:

$ 4,817GenenA gavemmerAPublic safety:PoliceFire


Total

10,9183,249

1.450

NOTE 7 - INTERFUND TRANSFERS

Interfund transfers during the year ended June 30,2006, were as follows:

General fundCapital projects fundWater fundGas fundSewer fund

Totals

Operating TransfersIn Out

23,1771

21,06921,85522,392

.44,242

Transfers are primarily used to move funds from the Proprietary Funds to the General Fund to cover expenses of generaloperations.

NOTE 8 - ACCOUNTS, SALARIES, AND OTHER PAYABLES

The payables of $36,775 at June 30,2006, were as follows:

GeneralFund

WithholdingsAccounts

EnterpriseFund Total

13,169 $19.068

136 $4.402

13,30523,470

Total .32237 $_ 4.538 $_ 36.775

26




NOTE 9 - LONG-TERM OBLIGATIONS

The following is a summary of the long-term obligation transactions for the year ended June 30, 2006:

Bonded CompensatedDebt Absences Total

Long-term obligations at beginning of year $ 264,000 $ 2,187 $ 266,187Additions -Deductions 10,000 1,445 11,445Long-term obligations at end of year $ 254.000 $ 742 $ 254.742

The following is a summary of the current (due in one year or less) and the long-term (due in more than one year)portions of long-term obligations as of June 30, 2006:

Bonded CompensatedDebt Absences Total

Current portion $ 10,000 $ 742 $ 10,742Long-term portion 244,000 - 244,000

Total $ 254.000 $ 742 S 254.742

Long-term debt consisted of a $393,800 Sewer Revenue Bond dated September 2, 1981, due in annual installments of$9,000 to $23,000 through September 2,2021 with interest rate of 5%.

A schedule of maturities of long-term debt follows for the years ended June 30:

Year ended Principal Interest Total20062007200820092010

2011-20152016-20202021

Interest incurred in connection with long-term debt totaled $13,848 and the entire balance has been presented as a directexpense of the Village sewer system.

NOTE 10 - SALES AND USE TAX REVENUES

Village of Sicily Island receives hard surface road tax and sanitation tax from Catahoula Parish.

$

10,00011,00011,00012,00012,00075,000

100,00023,000

254,000 $

12,70012,20011,65011,10010,50042,50021,2501,150

123.050 $

22,70023,20022,65023,10022,500

117,500121,25024,150

377.050

27




NOTE 11 - RETIREMENT SYSTEM

Beginning in February 2004, Village of Sicily Island offers its employees a voluntary savings plan under Section 457(b) ofthe Internal Revenue Code. The plan, available to all employees, permits them to defer a portion of their salary untilfuture yeais. Distributions are available if the employee terminates employment, becomes disabled, letiies, 01 dies.Distributions are also available to meet immediate and unexpected financial hardship needs. The Village also establisheda 401(a) plan, which allows matching up to 3% of the employees' gross compensation, only if the employee participated inthe 457(b) plan. To be eligible for this plan, the employee must have completed at least 90 days of service. Electedofficials are not permitted to participate in the 401(a) plan. As of June 30,2006, Village of Sicily Island has accrued $11,057in matching contributions.

NOTE 12 - COMPENSATION OF THE GOVERNING BOARD

The Governing Board of Village of Sicily Island, Louisiana consists of a Mayor and three Board of Aldermen. For thefiscal year ended June 30,2006, the following compensations were paid:

Salary

Art Goode, Mayor $ 6,645Gloria Anderson, Alderwoman 6,645Emma Hilliard, Alderwoman 6,645Derrick Frazier, Alderman 6,645

Totals $ 26.580

NOTE 13 - RISK MANAGEMENT

The Village is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors andomissions; injuries to employees; and natural disasters. The Village carries commercial insurance for these risks. Settledclaims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscalyears.

NOTE 14 - CONTINGENT LIABaiTIES

Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principallythe federal government. Any disallowed claims, including amounts already collected, may constitute a liability of theapplicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined atthis time although the Village expects such amounts, if any, to be immaterial.

Required Supplemental Information (Part II)

28

VaLAGE OF SICILY ISLAND, LOUISIANA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL

GENERAL FUND


RevenuesTaxesLicenses and permitsIntergovernmental revenuesFines and forfeituresCharges for servicesOther

Total revenues

ExpendituresCurrentGeneral governmentPublic safety:PoliceFire


Debt service:PrincipalInterest

Total expenditures

Excess (deficiency) of revenues over(under) expenditures

Other Financing Sources (Uses)Transfers in

Total other financing sources(uses)

Net Change in Fund Balance

Fund Balance atBeginning of Year

Fund Balance atEnd of Year

Budgeted AmountsOriginal

$

$

$

$

$

$

$

$

$

31,10016,00020,000

107,00053,30023550

250,950

151,535

94,8608,073

22,365

276,833

(25,883)

26,000

26,000

117

176,498

176,615

$

$

$

$

$

$

$

$

$

Final

31,10016,00020,000

107,0005330023550

250,950

151,535

94,8608,073

22,365

276,833

(25,833)

26,000

26,000

117

176,498

176,615

Variance WithFinal Budget

PositiveActual (Negative)

$

$

$

$

$

$

$

$

$

33,145 $15,22713,668

121,46258,28420,193

261,979 $

204,555 $

49,95312,747

33,527

3,331345

304,458 $

(42,479) $

23,177 $

23,177 $

(19302) $

185,193

165,891 $

2,045(773)

(6332)14,4624,984(3357)11,029

(53,020)

44,907(4,674)

(11,162)

(3,331)(345)

(27,625)

(16596)

(2,823)

(2,823)

(19,419)

8,695

(10.724)


29


NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION


NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

Budgetary Comparison Schedule

1. Basis of Presentation

The Budgetary Comparison Schedule presents the original legally adopted budget the final legally adopted budgetthe actual data on the GAAP basis, and variances between the final budget and the actual data.

2. Budget Amendments and Revisions

The budget is adopted by the Board of Aldermen. Amendments can be made on the approval of the Board ofAldermen. No amendments have been made from the original adopted budget A budgetary comparison ispresented for the General Fund and each major special revenue fund consistent with accounting principles generallyaccepted in the United States of America. There were no major special revenue funds.

Reports on Internal Control and Compliance

30

^ww*^"'

SILAS SIMMONS LLP

CERTIFIED PUBLIC ACCOUNTANTS ard ADVISORS 209 N. Commerce Street

P.O. Box 1027Natchez, Mississippi 39121-1027Telephone: 601.442.7411Fax: 601.442.8551

www.sllas8lmmons.com

REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF THE BASIC FINANCIAL STATEMENTSPERFORMED IN ACCORDANCE WITHGOVERNMENT AUDITING STANDARDS

The Honorable Art Goode, Mayorand Members of the Board of AldermenVillage of Sicily IslandSicily Island, Louisiana

We have audited the financial statements of the governmental activities, the business-type activities, andeach major fund of Village of Sicily Island, Louisiana, as of and for the year ended June 30, 2006, whichcollectively comprise Village of Sicily Island, Louisiana's basic financial statements, and have issued ourreport thereon dated December 7, 2006. We conducted our audit in accordance with auditing standardsgenerally accepted in the United States of America and the standards applicable to financial auditscontained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Village of Sicily Island, Louisiana's internal controlover financial reporting in order to determine our auditing procedures for the purpose of expressing ouropinions on the financial statements and not to provide an opinion on the internal control over financialreporting. However, we noted certain matters involving the internal control over financial reporting andits operation that we consider to be a reportable condition. Reportable conditions involve matters comingto our attention relating to significant deficiencies in the design or operation of the internal control overfinancial reporting that, in our judgment, could adversely affect Village of Sicily Island, Louisiana'sability to record, process, summarize, and report financial data consistent with the assertions ofmanagement in the financial statements. The reportable conditions are described in the accompanyingSchedule of Current Year Findings, Recommendations, and Corrective Action Plan as item numbers 03-02,05-05,06-01, and 06-02.

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 that might be reportable conditions and,accordingly, would not necessarily disclose all reportable conditions that are also considered to bematerial weaknesses. However, we consider the reportable condition 03-02 described above to be amaterial weakness.

American Institute of CPA,', Miuiuippi Society of CPA,i Latiuiiana Society of CPA.'

31

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Village of Sicily Island, Louisiana's financialstatements are free of material misstatement, we performed tests of its compliance with certain provisionsof laws, regulations, contracts, and grants, 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 one instance of noncompliance that is required to bereported under Government Auditing Standards, which are described in the accompanying Schedule ofCurrent Year Findings, Recommendations, and Corrective Action Plan as items 04-01 and 06-03.

This report is intended for the information of the Mayor, Members of the Board of Aldermen,management of Village of Sicily Island, Louisiana, and Legislative Auditor of the State of Louisiana, andis not intended to be and should not be used by anyone other than these specified parties. UnderLouisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a publicdocument.

Natchez, MississippiDecember 1,2006

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