05APR 18 AH!!: 02app.lla.state.la.us/PublicReports.nsf/94F30F4DF0CB999886256FF00… · 05APR 18 AH!!: 02 FRANKLIN PARISH COMMUNICATIONS DISTRICT WINNSBORO, LOUISIANA ANNUAL FINANCIAL

05APR 18 AH!!: 02

FRANKLIN PARISH COMMUNICATIONS DISTRICTWINNSBORO, LOUISIANA

ANNUAL FINANCIAL STATEMENTSWITH INDEPENDENT AUDITOR'S REPORT

AS OF AND FOR THE YEAR ENDED SEPTEMBER 30, 2004

WITH SUPPLEMENTAL INFORMATION SCHEDULES

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, where•^nnrnnriate at the office of the parish clerk of court., at the

Release Date.

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ANNUAL FINANCIAL STATEMENTSAS OF AND FOR THE YEAR ENDED SEPTEMBER 30, 2004

WITH SUPPLEMENTAL INFORMATION SCHEDULES

TABLE OF CONTENTS

Statement Page No.INDEPENDENT AUDITOR'S REPORT 1

REQUIRED SUPPLEMENTAL INFORMATION (PART DManagement's Discussion and Analysis

BASIC FINANCIAL STATEMENTSGovernment-Wide Financial Statements (GWFS)

Statement of Net Assets A 8Statement of Activities B 9

Fund Financial Statements (FFS)Governmental Funds

Balance Sheet C 11Reconciliation of the Governmental Funds Balance Sheet to

Government-Wide Statement of Net Assets D 12Statement of Revenues, Expenditures and Changes in FundBalances E 13

Reconciliation of the Governmental Funds Statement ofRevenues, Expenditures and Changes in FundBalances to Government-Wide Statement ofActivities F 14

Notes to Financial Statements 15

Schedule Page No.REQUIRED SUPPLEMENTAL INFORMATION (PART IT)

Budget Comparison Schedules - General Fund 1 25Notes to Budgetary Comparison Schedule 2 26

REPORTS REQUIRED BY GOVERNMENT AUDITING STANDARDS HP ART rfDIndependent Auditor's Report on Compliance and on InternalControl over Financial Reporting 28

SCHEDULE OF FINDINGS AND QUESTIONED COSTS 3 29

SCHEDULE OF PRIOR YEAR AUDIT FINDINGS 4 30

MARCUS, ROBINSON and HASSELLCERTIFIED PUBLIC ACCOUNTANTS

P. O. BOX 487702 EVADALE DRIVE

TELEPHONE (318) 435-7519WINNSBORO, LOUISIANA 71295

Harvey Marcus, CPA MEMBERJohn Robinson CPA AMERICAN INSTITUTE OFjonn Koomson, w-A CERTIFIED PUBLIC ACCOUNTANTSDoyle Hassell, CPA SOCIETY OF LOUISIANAChristie Fenn, CPA CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR'S REPORT

To the Board of CommissionersFranklin Parish Communications DistrictWinnsboro, Louisiana

We have audited the accompanying financial statements of the Franklin Parish Communications District, as of September 30,2004, and for the year then ended, as listed in the table of contents. These financial statements are the responsibility of theFranklin Parish Communications District's management. Our responsibility is to express an opinion on these basic financialstatements based on our audit.

We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable tofinancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation. We believe that our audit provides areasonable basis for our opinions.

In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position ofthe Franklin Parish Communications District, as of September 30, 2004, and the changes in its financial position for the year thenended in conformity with U.S. generally accepted accounting principles.

As described in Notes 1 and 13 to the financial statements, the District has implemented a new financial reporting model, asrequired by the provisions of GASB Statement No. 34, Basic Financial Statements - and Management's Discussion andAnalysis -for State and Local Governments, as of September 30, 2004.

Management's discussion and analysis, and supplementary information on pages 3-5 and 25-27, respectively are not a requiredpart of the basic financial statements but are supplementary information required by the Governmental Accounting StandardsBoard. We have applied certain limited procedures, which consisted principally of inquiries of management regarding themethods of measurement and presentation of the required supplemental information and reviewing the source of selectedinformation. However, we did not audit the information and express no opinion on it.

Our audit was performed for the purpose of forming opinions on the basic financial statements taken as a whole. Thesupplemental information schedules listed in the table of contents are presented for the purposes of additional analysis and arenot a required part of the basic financial statements of the Franklin Parish Communications District. Such information has beensubjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated inall material respects, in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued our report dated January 24, 2005, on the FranklinParish Communications District's compliance with laws, regulations, contracts and grants, and our consideration of theagency's internal control over financial reporting. That report is an integral part of an audit performed in accordance withGovernment Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

MARCUS, ROBINSON & HASSELL, CPAs

Winnsboro, LouisianaJanuary 25, 2005

REQUIRED SUPPLEMENTAL INFORMATION

PARTI

FRANKLIN PARISH COMMUNICATIONS DISTRICTENHANCED 911

6558 MAIN STREETP. O. BOX 366

WINNSBORO, LOUISIANA 71295PHONE (318) 435-9110 FAX (318) 435-9194

Management's Discussion and Analysis

As management of the Franklin Parish Communications District, we offer readers of the FranklinParish Communications District's financial statements this narrative overview and analysis-of the;financial activities of the Franklin Parish Communications District for the fiscal year' endedSeptember 30, 2004. Please read it j$ conjunction with the basic financial statements-and; theaccompanying notes to the financial fatements,, , K . , . - K >

Financial Highlights £ I ! \ /""• : -, ; \ ,„ ; -I —v;

- Revenue of the District exfeedejtf&xj^njfltfjres b^-$29;509Q. | A •- Year ending September 30, 2005, upgrade to E-911 Equipment, one installment payment

non-recurring of $40,000.00, recurring cost increase of $9,780.00 annuallyr ,\/ _r rt , i -Jnn nnf\f l »^*^"^MH?*Ps™^ i », . , .-„.. \ , <'. , ,

- Year ending September 30, 2005, coTwersiofl of FfankFrWansh E911 mapping system ata cost of $14,5QP:€0, upgrade mjappin| pffegftnti $1 ,§00.00, training~$830.00, totalmapping projectj$17,130.00. _

System 6|touisiana, employer contribution- Year 2005, Parochial Employees' Rrate increasing from 11.75% to 12.75;

- Thestro^fades and improvements;ch&rge remittances and Certificates o

Overview^! the Financial Statements '•

jugh monthly telephone service

/ -**. .-*This discussion and analysis provides an drerVfiSft oOhe fetrfSfeMjiillfc financial statements. Thestatement^^Lnet assets and the statement of activ' ^Bvernmental-wide financial statements)prqvidecimormation about the financial activities as I wboi and illustrate a long-term view of theDfstrjcj's finances. The balance sheet and statemeSrfaifelSvenues, expenditures and crjanges infund "balance - Governmental fund tell how these services were financed in the short terfn as wellas whafriemains for future^Jhe report also contains other supplementary information in addition tothe base financial statement ^ IJ' ' " : """" ' ' ' ' ' ^

In the Independent Auditor's Repprf, the auditor assures that the Basic Financial Statements areaccurately and fairly stated. ThisHndepencTent {Auditor's Regort; should be used to judgelhe levelof assurances provided for each portion in the financial sectloa

N\^Government-wide financial Statements

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These financial statementâre used to present a'"general overall |ook at the tlnances of theFranklin Parish Communications District similar to .a private sector business..** ff i . ./

Statement of Net Assets. By Ate/mining-fie difference between theLas3ets and liabilities of theFranklin Parish Communications District "Net Assets" is determined. By comparing statements ofNet Assets over a period of time, the overall financial trend of the Franklin Parish CommunicationsDistrict can be monitored.



WINNSBORO, LOUISIANA 71295PHONE (3m 435-9110 FAX (318) 435-9194

Statement of Activities. This statement shows changes in the Franklin Parish Communications .District's net assets during the course of the fiscal year and includesrevermes-an&expenses-.TneStatement of Activities reports all changes to net assets asrs'oon as the event affecting net assetsoccurs. T ;

"v*»* f ;

Fund Financial Statements - To comply witHj finance related legal requirements, the/ FranklinParish Communications District groups^latedâccounts into funds. Fund accounting i^ -used bystate and local governments to manage revenues orjesources designated fo[ a specific purpose.

t^y i | C /! ': \ | ';''••, \ , " \

Governmental Funds - information contained, irflhesesfunds may be used tor-determine agovernment's immediate or near-firm [financing- peeds^-sinc© the focus of governmental fundfinancial statements is on immediate bK near tern' revenues and expenses and not only onbalances available at the end of th;e fiscal year. l """"' •' """ '..I, i

Governmental funds account Jof the samepfOncgovernment-wide statemeplrbut is presentejd wihelpful to draw a comparison between the iinformation presented for governmental actibetter understand the/long range impact ofchoose toxuse 'the* reconciliation providegovernmental fund statement of revenue,clearly draw the comparison between thes

A budgetaffômparison statement is pannual adopted appropriated budget.

s aMol/eamBre rf

ation presengo

made foe^vlrn

the Financial Statements - These notesinndrstanding the data presented in the govemm

fffmental activities-found in thefocus. The reader may find it

Jin the governhêjitajlunds withnt-wide financial statements toear-term financing. Ohe maytal fund balance sheet and

in fund balances ({o moreyernmental

pliance with the. District's

additional information which is/helpfuland fund financial statements?

Other information - This_report provides certain required supplementary information above andbeyond fie basic financial sta\^fenis!ar)rfiaccompartying notes regarding! trie financial activities ofthe District L/ U ! f ivi L.1 .' > L/ -M. ! -1 \J : x^ .?•'

Government-wide Financial AnajysisjI

^**

Net assets maylje used to track the District's financial trendpver the course of severalfjscal years.As of September SO, 2004, the Franklin Parish Communications District's excess of Assets overliabilities is $232,08^ Of the District's assets, $12,/582 is fixedj assets (land, Buildings &equipment) and is notavajjable for future spendingfThis fixed asse;ts amount js.. approximately5.4% of the total assets. 1 / !

Because fiscal year 2004 is (rie,/frs^year this reporting model is~1jeing used, comparativeinformation is unavailable for additional government-wide financial analysis. A comprehensivecomparative analysis of government-wide data will be presented after prior years' information isretained.



WENNSBORO, LOUISIANA 71295PHONE (318) 435-9110 FAX (318) 435-9194

Financial Analysis of the Government's Funds

Fund accounting is used by the Franklin Parish Communications District to demonstrate itscompliance with finance related legal requirements/ahd to provide information used in determiningthe government's financing needs. Governmental funds are used to provide information.ohêar-term inflows, outflows, and expendableêsource balances. The unreserved fund balance-may beused to gauge the government's en((of year netresqurces that will be available for spending. '

The Franklin Parish Communicates District's combined governmental fund balances as ofSeptember 30, 2004, is S219.50& The September 30, ^2Q04 combined governmental fundbalances was $189,991. This is an increase of $29,50^ Offie,Septe(nberi30, 2J304 balances,$219,500 is unreserved and undesignated. ' ' "• '.Jx_ i,

General Fund Budgetary HigWiht

While expenditures reported on the final fcdg£t are less ftbeginning of the year^he final adopted bucJHfofSsjtenfceirevenue over the original budget for the fisciByeaVfrhJs is:theT

revenue gqneratifftj resources.

Capital Asset and Debt Administration^—,

X

SrCapital Assets: The Franklin Parish CogovernmentaCactivities as of Septembedepreciationjjfixed assets decreased by $3,690 fof

Request for Information

projected expenditures at the2004 reflects an increase in

suit of slight increases in most

ent in capital assets for its,582 (net of accumulated

This report may be used by all persons with an interest in the financial status of the Franklin ParishCommunications DisÛ^ttfi^cfesighejd!tp| help ifie reader gain;'a-general overall view of theDistrict'sjfinances. Aby question or'reque'st for additional information shouklbe addressgd to theFrankd'nParish Communications District, 6558 Main Street, Winnsboro, Louisiana 71295.7

Debbie B. BrownDirector

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BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDEFINANCIAL STATEMENTS (GWFS)

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STATEMENT AFRANKLIN PARISH COMMUNICATIONS DISTRICT

WEVNSBORO, LOUISIANASTATEMENT OF NET ASSETS

SEPTEMBER 30,2004

ASSETSCash and Cash Equivalents 198,093Accounts Receivable 21,840Capital Assets (net of accumulated depreciation) __12,582

TOTAL ASSETS 232,515

LIABILITIESAccrued Payroll Taxes 433

TOTAL LIABILITIES 433

NET ASSETSInvested in Capital Assets, net of related debt 12,582Unrestricted 219,500

TOTAL NET ASSETS 232,082

See Notes to Financial Statements

STATEMENTSFRANKLIN PARISH COMMUNICATIONS DISTRICT

WINNSBORO, LOUISIANASTATEMENT OF ACTTVnTES

FOR THE YEAR ENDED SEPTEMBER 30,2004

PROGRAM REVENUESOPERATING

AND CAPITALEXPENSES GRANTS

FUNCTIONS/PROGRAMS:Public Safety:

Personal ServicesOperating ServicesMaterials and SuppliesTravel and Other ChargesDepreciation

79,24362,565

3,63242

6,954

Total Government Activities 15 2,43 6

PROGRAM REVENUES:911 Fees911 SignsOther Income

Total Program Revenues

Net Program Expenses

GENERAL REVENUES:Interest Income

Total General Revenues

CHANGES IN NET ASSETS

NET ASSETS AT BEGINNING OF YEAR

-0--0--0--0-

-0-

NET ASSETS AT END OF YEAR


NET (EXPENSE)REVENUES AND

CHANGES INNET ASSETS

79,24365,565

3,63242

6.954

152,436

174,1701,996

195

176.361

23,925

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BASIC FINANCIAL STATEMENTS:

FUND FINANCIAL STATEMENTS (FFS)

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STATEMENT CFRANKLIN PARISH COMMUNICATIONS DISTRICT

WINNSBORO, LOUISIANAGOVERNMENTAL FUNDS

BALANCE SHEETSEPTEMBER 30,2004

GENERALASSETS

Cash 198,093Accounts Receivable 21.840

TOTAL ASSETS 219.933

LIABILITIES AND FUND BALANCELiabilities:Accrued Payroll Taxes 43,3

Total Liabilities 433

Fund Balances:Unreserved 219.500

Total Fund Balance 219.500

TOTAL LIABILITIES AND FUND BALANCE 219,933


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STATEMENT DFRANKLIN PARISH COMMUNICATIONS DISTRICT

WINNSBORO, LOUISIANARECONCILIATION OF THE GOVERNMENTAL FUNDS

BALANCE SHEET TO THE GOVERNMENT-WIDESTATEMENT OF NET ASSETS

SEPTEMBER 30,2004

Total Fund Balances at September 30, 2004 - Governmental Funds (Statement C) 219,500

Cost of Capital Assets at September 30, 2004Less: Accumulated Depreciation at September 30, 2004

NET ASSETS AT SEPTEMBER 30, 2004 ("STATEMENT At


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STATEMENT EFRANKLIN PARISH COMMUNICATIONS DISTRICT

WINNSBORO, LOUISIANAGOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE

FOR THE YEAR ENDED SEPTEMBER 30,2004

REVENUES911 Fees911 SignsOther IncomeInterest Income

TOTAL REVENUE

EXPENDITURESPersonal ServicesOperating ServicesMaterials and SuppliesTravel and Other ChargesCapital Outlay

TOTAL EXPENDITURES

EXCESS (DEFICIENCY) OF REVENUESOVER EXPENDITURES

FUND BALANCE AT BEGINNING OF YEAR

FUND BALANCE AT END OF YEAR


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GENERAL

178,255

148,746

29,509

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STATEMENT FFRANKLIN PARISH COMMUNICATIONS DISTRICT

WENNSBORO, LOUISIANARECONCILIATION OF GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES ANDCHANGES IN FUND BALANCES TO THE GOVERNMENT-WIDE

STATEMENT OF ACTIVITIESFOR THE YEAR ENDED SEPTEMBER 30, 2004

Total Net Change in Fund Balances - Governmental Funds (Statement E) 29,509

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

Capital outlays are reported in governmental funds as expenditures.However, in the Statement of Activities, thecost of these assets is allocated over their estimated usefullives as depreciation expense. This is the amount by whichdepreciation exceeds capital outlay for the period:

Capital Outlays 3,264Depreciation ( 6.954) (3,690)

Changes in Net Assets of Governmental Activities (Statement B) 25,819


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FRANKLIN PARISH COMMUNICATIONS DISTRICTWINNSBORO. LOUISIANA

NOTES TO FINANCIAL STATEMENTSSEPTEMBER 30, 2004

INTRODUCTION

Franklin Parish Communications District was created by the Franklin Parish Police Jury. The district is governed by a sevenmember board appointed by the police jury. The district is responsible for installation, maintenance and operation of a 911emergency system in Franklin Parish.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. BASIS OF PRESENTATION

The accompanying financial statements of the Franklin Parish Communications District have been prepared in conformity withU.S. generally accepted accounting principles (GAAP) as applied to government units. The Governmental AccountingStandards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financialreporting principles.

In June 1999, the Governmental Accounting Standards Board (GASB) unanimously approved Statement No. 34, Basic FinancialStatements - and Management's Discussion and Analysis for State and Local Governments. Certain of the significant changesin the Statement include the following:

A Management Discussion and Analysis (MD&A) section providing an analysis of the Communications District'soverall financial position and results of operations.

Financial statements prepared using full accrual accounting for all the Communications District's activities.

B. REPORTING ENTITY

The reporting entity for Franklin Parish consists of the Franklin Parish Police Jury, which as governing authority of the parish isthe component unit with oversight responsibility, and other governmental units (component units) within the parish over whichthe police jury exercises oversight responsibility. In accordance with GASB Codification Section 2100, Franklin ParishCommunications District is considered a component unit of the parish reporting entity because: (1) commissioners of thedistrict are appointed by the Franklin Parish Police Jury and, (2) the district provides 911 emergency service to residents withinFranklin Parish. While Franklin Parish Communications District is an integral part of the parish reporting entity and should beincluded within the general purpose financial statements of that reporting entity, GASB Codification Section 2600 provides thata component unit may also issue financial statements separate from those of the reporting entity. Accordingly, theaccompanying financial statements present information only on the financial operations of Franklin Parish CommunicationsDistrict and do not present information on the Franklin Parish Police Jury, the general government services provided by thepolice jury or on other component units that comprise the Franklin Parish reporting entity.

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FRANKLIN PARISH COMMUNICATIONS DISTRICTWEVNSBORO, LOUISIANA

NOTES TO FINANCIAL STATEMENTSSEPTEMBER 30.2004

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

C. BASIC FINANCIAL STATEMENTS - GOVERNMENT-WIDE STATEMENTS

The Communications District's basic financial statements include both government-wide (reporting the CommunicationsDistrict as a whole) and fund financial statements (reporting the Communications District's major fund). Both government-wideand fund financial statements categorize primary activities as either governmental or business type. All activities of theCommunications District are classified as governmental.

The Statement of Net Assets (Statement A) and the Statement of Activities (Statement B) display information about thereporting government as a whole. These statements include all the financial activities of the Communications District.

In the Statement of Net Assets, governmental activities are presented on a consolidated basis and are presented on a fullaccrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term obligations. Netassets are reported in three parts: invested in capital assets, net of any related debt; restricted net assets; and unrestricted netassets.

The government-wide financial statements are prepared using the economic resources measurement focus and the accrual basisof accounting. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange or exchange-like transactionsare recognized when the exchange occurs (regardless of when cash is received or disbursed). Revenues, expenses, gains,losses, assets and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements ofGASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions.

Program Revenues - Program revenues included in the Statement of Activities (Statement B) are derived directly from partiesoutside the Communications District's taxpayers or citizenry. Program revenues reduce the cost of the function to be financedfrom the Communications District's general revenues.

Allocation of Indirect Expenses - The Communications District reports all direct expenses by function in the Statement ofActivities (Statement B). Direct expenses are those that are clearly identifiable with a function. Indirect expenses of otherfunctions are not allocated to those functions but are reported separately in the Statement of Activities. Depreciation expense,which can be specifically identified by function, is included in the direct expenses of each function. Interest on general long-term debt is considered an indirect expense and is reported separately on the Statement of Activities.

D. BASIC FINANCIAL STATEMENTS - FUND FINANCIAL STATEMENTS

The financial transactions of the Communications District are reported in individual funds in the fund financial statements.Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactionsrelated to certain government functions or activities. Fund financial statements report detailed information about theCommunications District. The focus of governmental fund financial statements is on major funds rather than reporting fundsay type. Each major fund is presented in a separate column.

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P. BASIC FINANCIAL STATEMENTS - FUND FINANCIAL STATEMENTS, Continued

A fund is a separate accounting entity with a self-balancing set of accounts that comprise its assets, liabilities, fund equity,revenues, and expenditures. Funds are classified into three categories: governmental, proprietary, and fiduciary. Eachcategory, in turn, is divided into separate "fund types". Governmental funds are used to account for a government's generalactivities, where the focus of attention is on the providing of services to the public as opposed to proprietary funds where thefocus of attention is on recovering the cost of providing services to the public or other agencies through service charges oruser fees. Fiduciary funds are used to account for assets held for others. The Communications District's current operationsrequire the use of only governmental funds. The governmental fund types used by the Communications District are describedas follows:

Government Fund Types

General Fund - The General Fund, as provided by Louisiana Revised Statute 13:781, is the principal fund of theCommunications District and is used to account for the operations of the Communications District's office. The various feesand charges due to the Communications District's office are accounted for in this fund. General operating expenditures are paidfrom this fund.

E. BASIS OF ACCOUNTING

Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized in the accounts and reportedin the financial statements. It relates to the timing of the measurement made regardless of the measurement focus applied.

1. Accrual:

Both governmental and business type activities in the government-wide financial statements are presented on theaccrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred.

2. Modified Accrual:

The governmental funds financial statements are presented on the modified accrual basis of accounting. With thismeasurement focus, only current assets and current liabilities are generally included on the balance sheet. Thestatement of revenues, expenditures, and changes in fund balances reports on the sources (i.e., revenues and otherfinancing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approachdiffers from the manner in which the governmental activities of the government-wide financial statements are prepared.Governmental fond financial statements therefore include a reconciliation with brief explanations to better identify therelationship between the government-wide statements and the statements for governmental funds.

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2. Modified Accrual, Continued

Governmental funds and the fiduciary type agency funds use the modified accrual basis of accounting. Under themodified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they becomeboth measurable and available). Measurable means the amount of the transaction can be determined and availablemeans collectible within the current period or soon enough thereafter to pay liabilities of the current period. TheCommunications District considers all revenues available if they are collected within 60 days after the fiscal year end.Expenditures are recorded when the related fund liability is incurred, except for interest and principal payments ongeneral long-term debt which is recognized when due, and certain compensated absences and claims and judgmentswhich are recognized when the obligations are expected to be liquidated with expendable available financial resources.The governmental funds use the following practices in recording revenues and expenditures:

Revenues

Intergovernmental revenues and fees, charges, and commissions for services are recorded when the CommunicationsDistrict is entitled to the funds.

Interest income on time and demand deposits is recorded when the time deposits have matured and the income isavailable.

Substantially all other revenues are recognized when received by the Communications District,

Based on the above criteria, intergovernmental revenue and fees, charges, and commissions for services are treatedas susceptible to accrual.

Expenditures

Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability isincurred.

F. ENCUMBRANCES

Encumbrance accounting is not used in the Communications District's operations.

G. CASH AND CASH EQUIVALENTS

Cash and cash equivalents includes amounts in demand deposits, interest bearing demand deposits, and time deposits. Understate law, the Communications District must deposit funds in demand deposits, interest bearing demand deposits, moneymarket accounts or time deposits with state banks organized under Louisiana law and national banks having their principaloffices in Louisiana.

H. CAPITAL ASSETS

Capital assets are capitalized at historical cost or estimated cost if historical cost is not available. Donated assets are recordedas capital assets at their estimated fair market value at the date of donation.

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H. CAPITAL ASSETS. Continued

Capital assets are recorded in the GWFS, but are not reported in the FFS. Since surplus assets are sold for an immaterialamount when declared as no longer needed for public purposes by the Communications District, no salvage value is taken intoconsideration for depreciation purposes. All capital assets, other than land, are depreciated using the straight-line method overthe following useful lives:

Depreciation Estimated LivesVehicles 5 YearsFurniture & Fixtures 3-20 Years

I. RISK MANAGEMENT

The Communications District is exposed to various risks related to torts, damage-to, and destruction of assets; errors andomissions; injuries to employees; and natural disasters.

The District obtains its insurance coverage from the Franklin Parish Police Jury. The Franklin Parish Police Jury has joinedtogether with other parish governments to form the Louisiana Rural Parish Insurance Cooperative, a public entity risk poolcurrently operating as a common risk management and insurance program for Louisiana parish governments. The FranklinParish Police Jury pays an annual premium to the pool for its general and professional liability insurance coverage.

J. BAD DEBTS

Uncollectible accounts receivable are charged directly against earnings when they are determined to be uncollectible. Use ofthis method does not result in a material difference from the valuation method required by generally accepted accountingprinciples. Management feels all receivables at year end are collectible and no allowance for bad debts is necessary.

K. ESTIMATES

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States ofAmerica require management to make estimates and assumptions that affect the reported amounts of assets and liabilities anddisclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues,expenditures, and expenses during the reporting period. Actual results could differ from those estimates.

L. BUDGET PRACTICES

The proposed budget for the fiscal year ended September 30, 2004, was made available for public inspection on September 30,2003. The proposed budget was prepared on the modified accrual basis of accounting. The budget was legally amendedSeptember 30, 2004 by the Communications District.

All expenditure appropriations lapse at year end. Unexpended appropriations and any excess of revenues over expendituresare carried forward to the subsequent year as beginning fund balances.

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NOTES TO FINANCIAL STATEMENTSSEPTEMBER 30. 2004

M. VACATION AND SICK LEAVE

Employees earn up to 21 days of noncumulative vacation leave and 10 days of noncumulative sick leave each year. There areno accumulated or vested benefits relating to vacation and sick leave that require accrual or disclosure to conform withgenerally accepted accounting principles.

NOTE 2 - CASH AND CASH EQUIVALENTS

For the purpose of these financial statements, the Communications District considers cash and cash equivalents to be amountsheld in demand deposits, interest bearing demand deposits, and time deposits.

At September 30,2004 the Communications District has cash and cash equivalents (book balances) totaling $198,093 as follows:

Statement of_Net Assets

Demand Deposits 198.093

TOTAL 198.093

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

At September 30,2004, the Communications District has $203,592 in deposits (collected bank balances). These deposits aresecured from risk by $200,000 of federal deposit insurance and $91,057 of pledged securities held by the custodial bank in thename of the fiscal agent bank (GASB Category 3).

Even though the pledged securities are considered uncollateralized (Category 3) under the provisions of GASB Statement 3,Louisiana Revised Statute 39:1229 imposes a statutory requirement on the custodial bank to advertise and sell the pledgedsecurities within 10 days of being notified by the Communications District that the fiscal agent has failed to pay depositedfunds upon demand.

The Communications District was adequately collateralized at both banks.

NOTE 3 - RECEIVABLES

The receivables at September 30, 2004, are as follows:

GeneralClass of Receivable FundFees, Charges, and Commissions for Services 21,840

TOTAL 21.840

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FRANKLIN PARISH COMMUNICATIONS DISTRICTWTNNSBORO, LOUISIANA

NOTES TO FINANCIAL STATEMENTSSEPTEMBER 3Q. 2004

NOTE 4 - CAPITAL ASSETS

A summary of changes in capital assets for the year ended September 30, 2004 follows:

Capital AssetsOffice Furniture and EquipmentVehicles

Accumulated DepreciationOffice Furniture and EquipmentVehicles

Net Capital Assets

BalanceSeptember 30,

2003

118,23116,615

134,846

110,5438,031

Additions

4,692

4,692

Deletions

4,265-0-

4,265

2,837-0-

BalanceSeptember 30,

2004

118,65816,615

135,273

111,33711,354

The capital asset balance at September 30, 2003, has been restated to include accumulated depreciation in accordance withGASB Statement No. 34.

NOTE 5 - PENSION PLAN

All employees of the Franklin Parish Communications District's office are members of the Parochial Employees RetirementSystem of Louisiana (System), a cost-sharing, multiple-employer defined benefit pension plan administered by a separate boardof trustees. The System is composed of two distinct plans, Plan A and Plan B, with separate assets and benefit provisions. AHemployees of the Communications District are members of Plan A.

All permanent employees working at least twenty-eight hours per week who are paid wholly or in part from parish funds and allelected parish officials are eligible to participate in the System. Under Plan A, employees who retire at or after age 60 with atleast 10 years of creditable service, at or after age 55 with at least 25 years of creditable service, or at any age with at least 30years of creditable service are entitled to a retirement benefit, payable monthly for life, equal to 3 percent of their final-averagesalary for each year of creditable service. However, for those employees who were members of the supplemental plan onlybefore January 1, 1980, the benefit is equal to one percent of final-average salary plus $24 for each year of supplemental-plan-only service earned before January 1, 1980, plus 3 percent of final-average salary for each salary for each year of servicecredited after the revision date. Final-average salary is the employee's average salary over the 36 consecutive or joined monthsthat produce the highest average. Employees who terminate with at least the amount of creditable service stated above and donot withdraw employee contributions may retire at the ages specified above and receive the benefit accrued to their date oftermination. The System also provides death and disability benefits. Benefits are established or amended by State statute.

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NOTES TO FINANCIAL STATEMENTSSEPTEMBER 30, 2004

NOTE 5 - PENSION PLAN, Continued

The System issues an annual publicly available financial report that includes financial statements and required supplementaryinformation for the System. That report may be obtained by writing to the Parochial Employees' Retirement System ofLouisiana, P. 0. Box 14619, Baton Rouge, Louisiana 70898-4619, or by calling (504) 928-1361.

Under Plan A, members are required by state statute to contribute 9.50% of their annual covered salary and the Franklin ParishCommunications District is required to contribute at an actuarially determined rate. The current rate is 11.75% of annualcovered payroll. Contributions to the System also include one-fourth of one percent (except Orleans and East Baton RougeParishes) of the taxes shown to be collectible by the tax rolls of each parish. These tax dollars are divided between Plan A andPlan B based proportionately on the salaries of active members of each plan. The contribution requirements of plan membersand the Franklin Parish Communications District are established and may be amended by state statute. As provided by R.S.11:103, the employer contributions are determined by actuarial valuation and are subject to change each year based on theresults of the valuation for the prior fiscal year. The Franklin Parish Communications District's contributions to the Systemunder Plan A for the years ending September 30, 2004, 2003 and 2002 were $6,708, $4,650 and $3,734, respectively, equal to therequired contributions for each year.

NOTE 6 - POSTEMPLOYMENT BENEFITS

The Franklin Parish Communications District does not provide continuing health care and life insurance benefits for retirees.

NOTE 7 - ON-BEHALF PAYMENTS

The Communications District's office is located in the parish courthouse annex. Expenditures for operation and maintenance ofthe courthouse annex, as required by Louisiana Revised Statute 33:4715, are paid by the Franklin Parish Police Jury.

NOTE 8 - CHANGES IN ACCOUNTING PRINCIPLES AND RESTATEMENT OF FUND BALANCE

For the fiscal year ended September 30,2004, the Communications District implemented Governmental Accounting StandardsBoard (GASB) Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis -for State andLocal Governments; GASB Statement No. 37, Basic Financial Statements for State and Local Governments: Omnibus; GASBStatement No. 38, Certain Financial Note Disclosures; and GASB Interpretation No. 6, Recognition and Measurement ofCertain Liabilities and Expenditures in Governmental Fund Financial Statements.

At September 30, 2004, there was no effect on fund balances as a result of implementing GASB Statements 37 and 38.

GASB Statement No. 34 creates new basic financial statements for reporting on the Communications District's financialactivities. The financial statements now include government-wide financial statements prepared on the accrual basis ofaccounting and governmental fund financial statements prepared on the modified accrual basis of accounting, which presentinformation for individual major funds rather than by fund type.

The beginning net asset amount for governmental programs reflects the change in fund balance for governmental funds atSeptember 30,2003, caused by the conversion to GASB Statement No. 34.

GASB Interpretation No. 6 clarifies the application of standards for modified accrual recognition of certain liabilities andexpenditures in areas where differences have arisen, or potentially could arise, in interpretation and practice.

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NOTE 8 - CHANGES IN ACCOUNTING PRINCIPLES AND RESTATEMENT OF FUND BALANCE. Continued

GovernmentalFunds

Fund balances, September 30,2003 as originally presented 189,991

GASB Statement No, 34 Adjustment:Capital asset, net 16,272

Governmental activities net assets, September 30,2003 206,263

NOTE #9 - LITIGATION AND CLAIMS

At September 30, 2004, the Communications District is involved in no lawsuits.

NOTE 10 - SCHEDULE OF COMPENSATION PAID BOARD MEMBERS

The following is a list of board members and the amount of compensation paid to each:

Steve Pylant -0-Don Brown -0-Mitch Reynolds -0-Bill McLemore -0-Miles Kiper -0-Eugene Parker -0-Preston Mingo -0-

-0-

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REQUIRED SUPPLEMENTAL INFORMATION

PART II

24


BIJDGETARY COMPARISON SCHEDULEGENERAL FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2004

BUDGETED AMOUNTSORIGINAL FINALBUDGET BUDGET

REVENUES911 Fees911 SignsOther IncomeInterest Income

TOTAL REVENUE

EXPENDITURESPersonal ServicesOperating ServicesMaterials and SuppliesTravel and Other ChargesCapital Outlays

164,150-0--0-370

164,520

70,01383,1403,9574,0003,000

TOTAL EXPENDITURES 164,110

EXCESS (DEFICIENCY^ OFREVENUES OVER EXPENDITURES

FUND BALANCE AT BEGINNINGOF YEAR

FUND BALANCE AT END OF YEAR

410

171.258

171,668

171,4711,996

29337

173,833

79,26462,5675,087

42K81Q

148,770

25,063

ACTUAL

174,1701,996

1951.894

178,255

79,24362,5653,632

423.264

148,746

29,509

189.991

219,500


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SCHEDULE 1

VARIANCE WITHFINAL BUDGET

FAVORABLE(UNFAVORABLE')

2,699-0-166

1.557

4,422

212

1,455-0-

f 1.4541

24

4,446

18.733

23,179

SCHEDULE 2FRANKLIN PARISH COMMUNICATIONS DISTRICT

WINNSBORO, LOUISIANANOTE TO BUDGETARY COMPARISON SCHEDULE

FOR THE YEAR ENDED SEPTEMBER 30, 2004

A proposed budget is prepared on the modified accrual basis of accounting. The budget is then legally adopted by theCommunications District and amended during the year, as necessary. The budget is established and controlled by theCommunications District at the object level of expenditure. Appropriations lapse at year end and must be reappropriated for thefollowing year to be expended.

Formal budgetary integration is employed as a management control device during the year. Budgeted amounts included in theaccompanying budgetary comparison schedule include the original adopted budget amounts and all subsequent amendments.

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REPORTS REQUIRED BYGOVERNMENT AUDITING STANDARDS

PART IV

27

MARCUS, ROBINSON and HASSELLCERTIFIED PUBLIC ACCOUNTANTS

P. O. BOX 487702 EVADALE DRIVE

TELEPHONE (318) 435-7519WINNSBORO, LOUISIANA 71295

Harvey Marcus, CPA MEMBERJohn Robinson TPA AMERICAN INSTITUTE OFJohn Robinson, CPA CERTIFIED PUBLIC ACCOUNTANTSDoyle Hassell, CPA SOCIETY OF LOUISIANAChristie Fenn, CPA CERTIFIED PUBLIC ACCOUNTANTS

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

To the Board of CommissionersFranklin Parish Communications DistrictWinnsboro, Louisiana

We have audited the basic financial statements of the Franklin Parish Communications District, as of and for the year endedSeptember 30, 2004, and have issued our report thereon dated January 24,2005. We conducted our audit in accordance withauditing standards generally 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.

ComplianceAs part of obtaining reasonable assurance about whether the Franklin Parish Communications District's financial statementsare free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contractsand grants, noncompliance with which could have a direct and material effect on die determination of financial statementamounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, andaccordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that arerequired to be reported under Government Auditing Standards.

Internal Control Over Financial ReportingIn planning and performing our audit, we considered the Franklin Parish Communications District's internal control overfinancial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financialstatements and not to provide assurance on the internal control over financial reporting. Our consideration of the internalcontrol over financial reporting would not necessarily disclose all matters in the internal control over financial reporting thatmight be material. A material weakness is a condition in which the design or operation of one or more of the internal controlcomponents does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation tothe financial statements being audited may occur and not be detected within a timely period by employees in the normal courseof performing their assigned functions. We noted no matters involving the internal control over financial reporting and itsoperation that we consider to be material weaknesses.

This report is intended for the information and use of the Franklin Parish Communications District, management of the District,interested state agencies, and the Legislative Auditor of Louisiana and is not intended to be and should not be used by anyoneother than these specified parties. Although the intended use of these reports may be limited, under Louisiana Revised Statute24:513 this report is distributed by the office of the Louisiana Legislative Auditor as a public document.

MARCUS, ROBINSON & HASSELLJanuary 25, 2005

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SCHEDULE 3SCHEDULE OF FINDINGS AND QUESTIONED COSTS

AS OF AND FOR THE YEAR ENDED SEPTEMBER 30.2004

PART I - SUMMARY OF THE AUDITOR'S RESULTS

Financial Statement Auditi. The type of audit report issued was unqualified.

ii. There were no reportable conditions required to be disclosed by Government Auditing Standards issued by theComptroller General of the United States.

iii. There were no instances of noncompliance considered material, as defined by the Government Auditing Standards, tothe financial statement.

Audit of Federal AwardsNo federal awards received.

PART H - FHVDING(S) RELATING TO THE FINANCIAL STATEMENTS WHICH ARE REQUIRED TO BE REPORTED INACCORDANCE WITH GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS:

NONE

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SCHEDULE 4SCHEDULE OF PRIOR YEAR FINDINGS

AS OF AND FOR THE YEAR ENDED SEPTEMBER 30, 2004

There were no audit findings reported in the audit for the year ended September 30,2003.

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Documents

05APR 18 AH!!: 02app.lla.state.la.us/PublicReports.nsf/94F30F4DF0CB999886256FF00… · 05APR 18 AH!!: 02 FRANKLIN PARISH COMMUNICATIONS DISTRICT WINNSBORO, LOUISIANA ANNUAL FINANCIAL