Town of Franklinton

Transcription

Town of Franklinton

TOWN OF FRANKLINTON, LOUISIANA
Annual Financial Statements
October 31,2007
Under provisions of state law, this report is a public
document, Acopy of the report has been submitted to
the entity and other appropriate public officials. The
report is available for public inspection at the Baton
Rouge office of the Legislative Auditor and, where
appropriate, at the office of the parish clerk of court.
Release Date
TownofFranklinton
As of and for the Year Ended October 31,2007
With Supplemental Information Schedules
TABLE OF CONTENTS
Statement
Independent Auditor's Report
Page
6
Required Supplemental Information (Part I):
Management's Discussion and Analysis
9
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets
A
19
Statement of Activities
B
20
Balance Sheet, Governmental Funds
C
23
Reconciliation of the Governmental Funds Balance Sheet to the
Government-Wide Financial Statement of Net Assets
D
24
Statement of Revenues, Expenditures, and Changes in Fund Balances
£
25
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
F
27
G
28
Statement of Revenues, Expenses and Changes in Net Assets
H
29
Statement of Cash Flows
I
30
Fund Financial Statements:
Governmental Funds Financial Statements:
Proprietary Fund Financial Statements:
Notes to the Financial Statements
33
Town of Franklinton
TABLE OF CONTENTS
Schedule
Page
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - General Fund - Summary
1
60
Budget and Actual • General Fund - Detail
2
62
Budget and Actual - Special Revenue Fund - Streets and Drainage Sales Tax Fund....
3
66
4
69
5
71
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget (GAAP Basis) and Actual, Special Revenue Fund Police Ad Valorem
6
73
Budget (GAAP Basis) and Actual, Special Revenue Fund Street and Drainage Ad Valorem
7
74
Budget (GAAP Basis) and Actual, Special Revenue Fund Equipment Sales Tax
8
75
Budget (GAAP Basis) and Actual, Special Revenue Fund Building & Facilities Sales Tax
9
76
Budget (GAAP Basis) and Actual, Special Revenue Fund Industrial Development Sales Tax
10
77
Required Supplemental Information (Part It):
Other Supplemental Information:
Non-Major Governmental Funds:
Combining Balance Sheet, Nonmajor Governmental Funds
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances, Nonmajor Governmental Funds
Town of Franklinton
TABLE OF CONTENTS
Schedule
Page
11
78
Comparative Schedule of Net Assets
12
80
Comparative Schedule of Revenues, Expenses and Changes in Net Assets
13
81
Comparative Schedule of Cash Flows
14
82
Combining Schedule of Net Assets by Department
15
84
Combining Schedule of Revenues, Expenses & Changes in Net Assets by Dept...
16
85
Schedule of Revenues, Expenses and Changes in Net Assets
Budget (GAAP Basis) and Actual-Gas Utility System
17
86
Budget (GAAP Basis) and Actual - Water Utility System
18
87
Budget (GAAP Basis) and Actual - Sewer Utility System
19
88
Schedule of Gas, Water and Sewer Rates
20
89
Schedule of Number of Customers
20
89
Schedule of Insurance
21
90
Schedule of Compensation Paid to Board Members
22
91
Budget (GAAP Basis) and Actual, Special Revenue Fund Rural Development Grant
Proprietary Funds - Utility Fund:
Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
92
Schedule of Findings and Responses
94
Schedule of Prior Audit Findings and Questioned Costs
95
This Page Intentionally Left Blank
CERTIFIED PUBLIC ACCOUNTAt^TS
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor, Earle R. Brown
and Board of Aldermen
Town of Franklinton, Louisiana
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the remaining aggregate fund information of
TOWN OF FRANKLINTON, LOUISIANA (the Town), as of and for the year ended
October 31, 2007, which collectively comprise the Town's basic financial statements as listed in
the table of contents. These basic financial statements are the responsibility of the Town's
management. Our responsibility is to express an opinion on these basic financial statements
based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America, and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
As disclosed in Note 20 to the financial statements, the Town has a receivable from the
Federal Emergency Management Administration (FEMA) in the amount of $4,175,000 for
Hurricane Katrina expenditures that were incurred during the year ended October 31,2006. As of
October 31, 2007, this amount remains a receivable in the General Fund. Included in this
receivable is $2,224,765 of requests that were denied by FEMA and are now on appeal.
Although it is uncertain as to the outcome of this appeal, as of the date of this report the Town
considers this receivable to be fully collectible and, accordingly, has not set up an uncollectible
allowance for any part of the receivable.
In our opinion, except for the effects of reporting the receivable from FEMA in fiill on the
General Fund, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund and the aggregate remaining fund information of TOWN OF FRANKLINTON,
LOUISIANA, as of October 31, 2007, and the respective changes in financial position and cash
flows, where applicable, for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
110 VETERANS MEMORIAL BOULEVARD, SUITE 200, METAIRIE. LA 70005-495S • 504.835.5522 - FAX 504.835.5535
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WWW.LAPORTE.COM
RSM McGladrey Network
An Independently Owned Memtof
In accordance with Government Auditing Standards, we have also issued our report dated
April 7, 2008, on our consideration of TOWN OF FRANKLINTON, LOUISIANA'S internal
contro! over financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts, grant agreements, and other matters. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our
audit.
The management's discussion and analysis and the budgetary comparison schedules
identified as Schedules 1 through 3, as listed in the table of contents, are not a required part of the
basic financial statements but are supplemental information required by accounting principles
generally accepted in the United States of America. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement
and presentation of the required supplemental information. However, we did not audit the
information and express no opinion on it.
Our audit was conducted for the purpose of forming an opinion on the financial statements
that collectively comprise the Town's basic financial statements. The accompanying other
supplemental information listed in the table of contents under Other Supplemental Schedules and
identified as Schedule 4 through Schedule 22 is presented for purposes of additional analysis and
is not a required part of the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the financial statements and, in our opinion, is
fairly stated, in all materials respects, in relation to the basic financial statements taken as a
whole.
A Professional Accounting Corporation
April 7, 2008
Required Supplemental Information (Part I)
Town of Franklinton
Introduction
The Town of Franklinton, Louisiana (the Town) is pleased to present its Annual Financial Statements developed
in compliance with Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements Management's Discussion andAnafysis - For State and Local Governments (GASB 34), and related standards.
The Town's discussion and analysis is designed to (a) assist the reader in focusing on significant financial issues,
(b) provide an overview of the Town's financial activity, (c) identify changes in the Town's financial position, (d)
identify any significant variations from the Town's financial plan, and (e) identify individual fund issues or
concerns.
Since Management's Discussion and Analysis (MD&A) is designed to focus on the current year's activities,
resulting changes, and currently known facts, please read it in conjunction with the Town's financial statements.
Financial Highlights
•
At October 31, 2007, the Town's assets exceeded its liabilities by $9,587,044 (net assets). Of this
amount, $4,448,798 (unrestricted net assets) may be used to meet the Town's ongoing obligations to its
citizens.
•
The most significant on-going continuing revenue sources for governmental activities of the Town
consisted of $2,088,812 in sales tax revenues, $312,858 in property taxes, $196,377 in public utility
franchise taxes, and $358,745 for business licenses and permits. Charges for business-type activities of
the utility fund were $1,228,671 in gas charges, $444,685 in water charges and $433,140 in sewer
charges.
•
The Town's significant expenditures in the current year for governmental activities included
$800,130 for general governmental activities, $1,559,928 for police and fire protection, and
$900,926 for public works, including streets and drainage maintenance. Expenses for businesstype activities of the gas, water, and sewer departments totaled $2,499,811.
•
Accrual of revenues and expenditures for the prior fiscal year ending October 31, 2006 for
Hurricane Katrina resulted in a receivable (Due From ) accrued at fiscal year end of $4,175,100,
and a payable of $3,831,592 accrued at fiscal year end for expenditures related to Katrina. As
indicated in Footnote 20 (Contingent Liabilities), the Federal Emergency Management
Administration (FEMA) has not made a final determination on the payment of claims, and the
non-payment of these claims could adversely affect the provision of services by the Town of
Franklinton.
•
For the year ended October 31, 2007, the Town's bonds payable in long term debt for the
proprietary fund decreased by $27,828, due to debt repayments, resulting in ending bonds
payable of $2,502,565. Debt for governmental activities, consisting of sales tax bonds issued
June 12,2002, decreased by debt payments of $758,000 to a principal balance of $1,756,000.
•
The Town completed construction totaling $1,298,298 for two related projects for road
development and sewer improvements for the Industrial Park. Other construction projects, either
in progress or planned at fiscal year end, are summarized in the financial statement footnotes
within Footnote 22 - Subsequent Events.
Town of Franklinton
Overview of the Annual Financial Report
The financial statement focus is on both the Town as a whole and on the major individual funds. Both
perspectives, government-wide and major funds, allow the user to address relevant questions, broaden a basis for
comparison, and enhance the Town's accountability. The statements then proceed to provide an increasingly
detailed look at specific financial activities.
The MD&A is intended to serve as an introduction to the Town's basic financial statements, which consist of
three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the
financial statements. This report also contains other supplementary information in addition to the basic financial
statements.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
Town's finances in a manner similar to a private-sector business. Governmental activities, which normally
are supported by taxes and intergovernmental revenues, and business-type activities, which rely to a
significant extent on fees and charges for support are presented in separate columns along with a total column
for the primary government. If the Town determines that presentation of a component unit (which are other
governmental units for which the Town can exercise significant influences or for which the Primary
Government financial statements would be misleading if component unit information is not presented) is
necessary to allow the reader to determine the relationship of the component unit and primary government,
the component unit information is presented in a separate column of the financial statements or in a separate
footnote. For the current fiscal year, the Town of Franklinton has no component units.
The Statement of Net Assets presents information on the Town's assets and liabilities using the accrual basis
of accounting, in a manner similar to the accounting used by private business enterprises. The difference
between the assets and liabilities is reported as net assets. Over time, the increases or decreases in net assets
and changes in the components of net assets may serve as a useful indicator of whether the financial position
of the Town is improving or deteriorating.
The Statement of Activities presents information showing how the Town's net assets changed during the most
recent fiscal year, focusing on both the gross and net costs of various activities, both governmental and
business-type, that are supported by the Town's general tax and other revenues. This is intended to
summarize and simplify the reader's analysis of the cost of various governmental services and/or subsidy to
various business-type activities.
In both of the government-wide financial statements, the Town's activities are divided into two types:
Governmental activities - Most of the Town's basic services are reported here, including general
government, public safety, streets and sanitation, health and welfare, and culture and recreation. These
activities are financed primarily by property taxes, franchise taxes, sales taxes, fire insurance rebates, and
fines.
Business-type activities - The Town charges a fee to customers to help it cover all of the cost of the
services provided. The Town's water, natural gas, and sewer utility systems are reported in this section.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule, if applicable, are payments-in-lieu of taxes and other charges
10
Town of Frankiinton
between the government's enterprise operations. Elimination of these charges would distort the direct costs
and program revenues reported for the various functions concerned.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The Town, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related and legal requirements. The Town
uses two categories of funds to account for financial transactions: governmental funds and proprietary funds.
Traditional users of governmental financial statements will find the fund financial statements presentation
more familiar.
Governmental funds are used to account for most of the Town's basic services. However, unlike the
government-wide financial statements, governmental fund financial statements focus on how money flows
into and out of those funds and the balances that are left at year-end that are available for spending. These
funds are reported using the modified accrual basis of accounting, which measures cash and all other financial
assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term
view of the Town's general government operations and the basic services it provides. Governmental fund
information helps to determine whether there are more or fewer financial resources that can be spent in the
near future to finance the Town's programs.
Proprietary funds account for water, natural gas, and sewer utility services provided by the Town to its
customers. Proprietary funds statements provide the same type of information as the government-wide
financial statements, but the fund presentation provides more detail.
Because the focus of governmental funds is narrower than that of the government-wide financial statements,
there are differences in the information presented for government funds and for governmental activities in the
government-wide financial statements. Review of these differences provides the reader of the financial
statements insight on the long-term impact of the Town's more immediate decisions on the current use of
financial resources. Both the governmental fund Balance Sheet and the governmental fund Statement of
Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
The notes to the financial statements provide additional information that is essential to a full understanding of
the data provided in the government-wide and fund financial statements.
11
Town of Franklinton
Government-Wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. The
following table provides a summary of the Town's net assets for the current year as compared to the prior year.
Net Assets
2007 and 2006
Business-Type Activities
2«07
2006
Governmental Activities
2007
2006
Assets:
Current and Other Assets
Capital Assets
Total Assets
$
Liabilities:
Long-Term Debt Outstanding
Other Liabilities
Total Liabilities
6,957,213 $ 7,497,110
4.972,883
4.979,595
11,930,096
12,476,705
Total
2007
2006
2,600,708
4.022.196
6,622,904
2,801,991
3.937,160
6,739,151
9,557,921 S 10,299,101
8.995,079
8,916,755
18.553,000
19,215,856
2,055,441
4,098,880
6,154.321
2,393,822
4,533,799^
6.927.621
2,511,854
299,781
2,811,635
2,524,280
351,686
2,875,966
4,567,295
4,398,661
8,965,956
4,918,102
4,885,485
9,803,587
Net Assets:
Invested in Capital Assets, Net
of Related Debt
3,163,430
2,401,312
1,519,631
707,739
4,683,061
3,109,051
Restricted
Unrestricted
Total Net Assets
268,563
2,343,782
5.775,775 $
751,440
2,396,332
5,549,084 $
186,622
2,105,016
3.811,269 S
455,185
4,448,798
9,587,044 $
857,280
5,445,938
9.412.269
S
105,840
3,049,606
3,863,185 $
Approximately forty-nine percent of the Town's net assets reflect its investment in capital assets (land, buildings,
equipment, infrastructure, and improvements) net of any outstanding related debt used to acquire those capital
assets. These capital assets are used to provide services to citizens and do not represent resources available for
future spending. Although the Town's investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital assets
cannot be used to liquidate these liabilities.
Approximately five percent of the Town's net assets represent resources that are subject to external restriction on
how they may be used. The Town's restricted net assets primarily consist of cash for capital projects in
governmental activities and cash reserves required for customer deposits in business-type activities net of
corresponding liabilities.
Approximately forty-six percent of the Town's net assets are unrestricted and may be used to meet the Town's
ongoing obligations to its citizens.
At the end of the current fiscal year, the Town was able to report positive balances in all three categories of net
assets, both for the Town as a whole, as well as for separate governmental and business-type activities. However,
any possible non-payment of claims as noted in Footnote 20 (Contingent Liabilities), would reduce the funds
available for day-to-day operations, and would reduce unrestricted net assets. Accrual of revenues and
expenditures for Hurricane Katrina from previous fiscal periods resulted in a receivable (Due From) accrued at
12
Town of Franklinton
October 31,2006 of $4,175,100, and a payable of $3,831,592. Subsequent to fiscal year end, the Town received
$1,618,563 in FEMA reimbursements.
The Town's activities increased its total net assets by $174,775, with governmental activities increasing net assets
by $226,691 and business-type activities decreasing net assets by $51,916.
In order to further understand what makes up the changes in net assets, the following table provides a summary of
the results of the Town's activities for the current year as compared to the prior year. An analysis of the primary
sources of these changes follows the table.
Changes in Net Assets
For the years ended October 31,2007 and 2006
Revenues:
Program Revenues:
Charges for Services
Capital Grants and Contributions
S
General Revenues:
Taxes
Intergovernmental
Unrealized Gain (Loss)
Interest Income
Donations
Miscellaneous
Gain on Sate of Assets
Total Revenues
Expenses:
General Government
Public Safety
Public Works
Sanitation
Health and Welfare
Transportation
Economic Development
Amortization
Bond Interest Expense
Capital Lease Interest
Water, Gas, and Sewer Utility
Total Expenses
2006
2007
599,021 $
5,000
2,106,496 S
.
2,240,686 $
100,000
.
2006
2,705,517 S
5,000
2,790,492
248,041
2,598,047
584,639
18,675
239,372
224,040
62,568
74,550
2,679,660
7,720,736
2,679,660
7,720,736
(1,098)
108,848
•
96,801
112,815
23,953
-
4,249,733
11,336,309
2,262,675
2,478,187
6,512,408
13,814,496
•
•
2,499,811
•
•
•
2,388,839
800,130
1,559,928
900,926
140,495
326,554
3,749
(6,379)
1,791
110,628
•
2,499,811
876,136
1,293,071
7,563,714
120,055
198,317
5,151
2,499,811
2,388,839
6,337,633
12,566,146
1,159,002
(87,709)
(237,136)
185,220
89,348
87,709
174,775
1,248,350
226,691
5,549,084
1,071,293
4,477,791
5,775,775 $
5,549,084 $
(51,916)
3,863,185
3,81 1,269 J
177,057
3,686,128
3,863,185 S
174,775
9,412,269
9,587,044 $
1,248,350
8,163,919
9,412,269
110,628
33,515
876,136
1,293,071
7,563,714
120,055
198,317
5,151
•
1,791
118,987
-
85
-
-
3,837,822
411,911
(185,220)
$
549,806 S
148,041
Total
2007
2,598,047
584,639
(736)
126,557
224,040
38,615
74,550
800,130
1,559,928
900,926
140,495
326,554
3,749
(6,379)
1,791
Change in Net Assets Before Transfers
Transfers (Out) In
Change in Net Assets
Net Assets, Beginning
Nel Assets, Ending
2007
2006
10,177,307
13
•
19,411
(212)
109,306
28,407
-
(1310)
218,154
61,922
96,801
1,791
118,987
85
2,388,839
Town off Franklinton
The Town's governmental net assets increased by $226,691 or four percent of the prior year ending net assets,
to $5,775,775. The significant factors in this change in net assets are the result of a more normal fiscal period
while trying to continue to eliminate fiscal issues remaining from the impact of Hurricane Katrina in 2005.
On the revenue side, donations were received through the Franklinton Area Economic Development Fund of
$199,039 to fund the Bruce Street, Webb Street and Industrial Sewer project, and the decrease in
intergovernmental activities reflected no additional accrual or payments received from FEMA for the current
fiscal year ended.. On the expense side the most notable increase was for public safety expenses (police and
fire) rising by $266,857 (21 percent) from 2006. Although police and fire departmental expenses decreased in
many categories, increases were noted in the police department of $123,430 for salaries, $20,064 for benefits,
and $111,632 for insurance.
The Town's business-type net assets decreased by $51,916, or one percent of the prior year ending net assets,
to $3,811,269. Charges for services remained relatively constant while operating expenses for the utility fund
increased by 209,261 (17 percent). Notable increases in expenses were $78,852 for wages, $107,446 for
supplies for gas, water, and sewer lines maintenance, and $67,150 related to depreciation expense charges.
The overall negative change in net assets of $51,916 varies within departments of the business-type fond, with
the Gas department showing a $280,465 positive change in net assets, and the Water and Sewer departments
recording negative changes in net assets of $65,871 and $266,600 respectively. It should also be noted that
the negative change in net assets of $51,916 was lower because of net operating transfers in of $185,220.
Fund Financial Analysis
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental Funds
The focus of the Town's governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the Town's financing requirements.
In particular, unreserved fund balance may serve as a useful measure of the Town's net resources available
for spending at the end of the year.
At the end of the current year, the Town's governmental funds reported combined ending fund balances of
$2,874,498, $385,919 of which is reserved for capital projects, $31,429 reserved for debt service, and
$2,457,150 of which is unreserved and available for spending at the Town's discretion.
This represents a decrease of $515,144 from the prior year's ending balances. The general fund is the chief
operating fund of the Town. At the end of the current year, the total fund balance for the general fund was
$856,038, all of which was unreserved.
Proprietary Funds
The Town's proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail.
14
Town of FrankJinton
Governmental Fund Budgetary Highlights
There were no budget findings for the General Fund indicating that either budgeted revenues and other
sources exceeded actual revenues and other sources by over five percent, or actual expenditures and
other uses exceeded budgeted revenues and other sources or expenditures and other uses by more than
five percent However, Footnote 2 - Stewardship, Compliance, and Accountability lists several budget
findings for other governmental funds. Budget-to-actua! reports for other governmental funds are
presented in the Required Supplementary Information as Schedule 3, and within Supplementary
Information as Schedules 6-11.
Capital Assets and Debt Administration
Capital Assets
The Town's investment in capital assets for its governmental and business-type activities as of October 31,2007
amounts to $8,995,079 (net of depreciation). The total increase in the Town's investment in capital assets for the
current fiscal year was $1,574,010 (net of depreciation).
The following table provides a summary of the Town's capital assets (net of depreciation) at the end of the current
year as compared to the prior year.
Capital Assets (Net of Depreciation)
2007 and 2006
Capital Assets
Land
Buildings and Improvements
Office Furniture and Equipment
Machinery and Equipment
Vehicles
Infrastructure
Construction in Progress
Water Utility System
Gas Utility System
Sewer Utility System
Subtotal Capital Assets
less: Accumulated Depreciation
Capital Assets, Net
Total
2007
2006
2007
2007
2006
2006
514,727 $ 594,527 $
3,300 $
3,300 $ 518,027 $ 597,827
4,365,23*
4,361,628
4,365,238
4,361,628
135,251
125,523
135,251
125,523
1,388,342
1,150,479
1,388,342
1,150,479
872,387
864,737
872,387
864,737
(11,644
74,140
111,644
74,140
199,575
199,575
873,647
873,647
1,029,227
1,029,227
1,029,227
1,029,227
2,559,458
2,552,638
2,552,638
2,559,458
6,840,638
5,487,669
6,840,638
5,487,669
7,587,164
7,171,034
18,019,787
10,432,623
9,946,481
17,117,515
(2.614,281)
(2,191,439) (6,410,427) (6,009,321) (9,024,708) (8,200,760)
S 4,972,883 S 4,979,595 $ 4,022,196 $ 3,937,160 $ 8,995,079 S 8,916,755
15
Town of Franklinton
Significant capital additions for the fiscal year ending October 31,2007, consisted of the following:
•
For governmental funds, Machinery & Equipment increased by $237,863, with the primary additions
including $58,465 for an excavator, $21,000 for a bush hog, and a purchase totaling $119,835 for an Elgin
Pelican Sweeper. Vehicles increased by $37,000 for police and street vehicles. At fiscal year-end the Town
had incurred $199,575 for construction projects and had numerous construction projects planned or in
progress, as more fully described in Footnote 22 - Subsequent Events.
•
For business-type funds, the major increase was for completed construction costs of $1,298,298 consisting of
completed costs of $949,790 for the Section Line Road - Industrial Park Sewer Improvements, and $348,589
for the Bruce Street, Webb Street, and Industrial Park Sewer project. The Town received $199,039 from the
Franklinton Area Economic Development Foundation (FAEDF) as partial reimbursement of the $348,589 in
construction costs.
Long-Term Debt
At October 31,2007, the Town had total debt outstanding of $4,312,018. Of this total, $45,403 (including current
bond and leases payable) is due within one year and $4,266,615 is due within greater than one year. The
following table provides a summary of the Town's outstanding debt at the end of the current year as compared to
the prior year,
Ontstanding Debt
2007 and 2006
Capital Leases
Revenue Bonds
Total Outstanding Debt
Total
2007
2007
2006
2006
2007
2006
$
53,453 $
13,363 $
- $
53,453 $
13,363
1,756,000
2,514,000
2,502,565
2,530,393
4,258,565
5,044,393
$ 1,809,453 $ 2,527,363 $ 2,502,565 $ 2,530,393 $ 4,312,018 $ 5,057,756
Other Factors Affecting the Town
The Town of Franklinton's management approach is conservative. When possible, the Mayor and Aldermen
attempt to provide services for the Town based on existing revenues and to borrow for long-term projects only
when absolutely necessary. The Town actively pursues grant funds to minimize the cost of major projects for its
citizens and has numerous projects either planned or in progress at October 31, 2007. The reader of this
document should refer to financial statement Footnote 22 - Subsequent Events, on page 58. Page 58 lists
$1,658,000 in projects for which the Town of Franklinton has secured grant funding and funding for projects from
other sources. This has the effect of minimizing the cost paid by the local taxpayer. However, the Town is facing
increasing costs and has an obligation to its citizens to maintain or increase the level of services being provided.
In particular, the Police Department faced increased costs of $266,857 at a time when sales tax revenues
decreased by $83,000 and property tax, licenses, and franchise fees remained relatively constant.
The Town also attempts to keep utility rates at the minimum required to cover the costs of utility system
operation. However, gas system rates are largely dependent on the amounts charged the Town for the cost of gas
sold and sewer costs are increased by the cost of compliance to mandatory health department and environmental
protection laws and regulations. Although the Town was able to maintain the same level of revenue through
16
Town of Franklinton
active collection of accounts bided to customers, the Town continues to face increased costs of providing service.
For the fiscal year ending October 31, 2007, the Town was only able to provide services by transferring to the
Utility Fund from other funds a total of $185,520. Without this transfer of funds, the Utility Fund would have
incurred a net loss of $237,136. The transfer of fund affected the General Fund mostly, which showed a loss of
$129,425 and continues to have a primary responsibility to provide public services including police protection.
The transfer of funds to the Utility Fund from other funds decreases the amount of funding available for public
services.
One of the challenges facing the Town is to generate more revenues from the operation of the Utility Fund and to
make the Utility Fund stand on its own so that other funds will be able to provide needed services for its citizens.
Contacting the Town's Financial Management
This financial report is designed to provide the Town's citizens, taxpayers, creditors and investors with a general
overview of the Town's finances and show the Town's accountability for the money it receives. If you have
questions regarding this report or need additional information, contact the Town at 301 11th Avenue, Franklinton,
LA 70438. The phone number for the Town is (985) 839-3560.
17
Basic Financial Statements
Government-Wide Financial Statements
18
Statement A
Town of Franklinton
As of October 31,2007
Primary Government
Business-Type
Governmental
Activities
Activities
Assets
Current Assets:
Cash and Cash Equivalents
Investments
Receivables, Net:
Intergovernmental
Accounts
Interest
Franchise Taxes
Due From Other Funds
Inventory
Bond Issue Cost, Net
Prepaid Insurance
Total Current Assets
Total
1,624,984 $
318,197
41,503 $
1,820,562
1,666,487
2,138,759
4,568,051
9,734
3,966
12,656
25,948
15,820
8,216
101,078
6,688,650
288,264
1,587
6,050
70,072
6,754
36,486
2,271,278
4,568,051
297,998
5,553
12,656
31,998
85,892
14,970
137,564
8,959,928
268,563
268,563
254,430
75,000
329,430
522,993
75,000
597,993
514,727
4,458,156
4,972,883
3,300
4,018,896
4,022,196
518,027
8,477,052
8,995,079
11,930,096
6,622,904
18,553,000
Liabilities
Current Liabilities:
Accounts Payable
Other Accrued Payables
Due To Other Governments
Due To Other Funds
Customer Deposits
Bonds Payable
Capital Leases
Compensated Absences Payable
Accrued Interest on Long Term Debt
Total Current Liabilities
3,903,429
71,712
65,247
6,050
16,165
36,277
4,098,880
75,566
16,669
25,948
135,683
29,238
9,552
7,125
299,781
3,978,995
88,381
65,247
31,998
135,683
29,238
16,165
45,829
7,125
4,398,661
Long Term Liabilities:
Bonds Payable
Capital Leases
Total Long Term Liabilities
1,756,000
37,288
262,153
2,055,441
2,473,327
38,527
2,511,854
4,229,327
37,288
300,680
4,567,295
6,154,321
2,811,635
8,965,956
3,163,430
1,519,631
4,683,061
268,563
2.343,782
5,775,775 $
186,622
2,105,016
3,811,269
455,185
4,448,798
9,587,044
Restricted Assets:
Restricted Cash and Cash Equivalents
Restricted Investments
Total Restricted Assets
Capital Assets:
Land
Capital Assets, Net
Total Capital Assets
Total Assets
Total Liabilities
Net Assets
Invested in Capital Assets, Net of Related Debt
Restricted for:
Capital Projects and Debt Service
Unrestricted
Total Net Assets
$'
-
The accompanying notes are an integral pare of these financial statements.
19
-
$'
Town of Fnnklinton
Statement of Activities
For the year ended October 31,2007
Expenses
General Government
Public Safety
Public Worics
Sanitation
Health and Welfare
Transportation
Amortization
Total Governmental Activities
$
Business-type Activities
Gas
Water
Sewer
Total Badness-type Activities
$
Charges for
Services
800,130 $
1,559,928
900,926
140,495
326,554
3,749
(6,379)
1,791
110,628
3,837,822
358,745 $
75,885
164,391
599,021
1,291,395
526329
682,087
2,499,811 $
1,228,671
444,685
433,140
2,106,496 $
General Revenues:
Taxes;
Property Taxes
Sales Taxes
Franchise Taxes
Intergovernmental
Interest Income
Donations
Miscellaneous
Operating Transfers In (Out)
Gain on Sale of Assets
Total General Revenues and Transfers
Net Assets-Beginning
Net Assets-Ending
The accompanying notes are an integral part of these financial statements.
20
Program Revenues
Operating
Grants &
Capital Grants &
Contributions
Contributions
$
5,000
•
•
•
•
5,000
-
Net (Expenses)
Revenues
(441,385)
(1,479,043)
(900,926)
23,896
(326,554)
(3,749)
6,379
(1,791)
(110.628)
(3J33.8Q1)
(62,724)
(81,644)
(248,947)
$
Statement B
Net (Expenses) Revenues and
Changes of Primary Government
Governmental
Business-Type
Activities
Activities
(441,385) $
(1,479,043)
(900,926)
23,896
(326,554)
(3,749)
6,379
(1,791)
(110,628)
(3,233,801)
•
•
-
$
(62,724)
(81,644)
(248,947)
(393,315)
-
312,858
2,088,812
196,377
584,639
(736)
126,557
224,040
38,615
(185,220)
74,550
3,460,492
341,399
226,691
(51,916)
312,858
2,088,812
196,377
584,639
18,675
239,372
224,040
62,568
19,411
112,815
23,953
185,220
-
-
74,550
3,801,891
174,775
3,863,185
$
3,811,269
(441,385)
(1,479,043)
(900,926)
23,896
(326,554)
(3,749)
6,379
(1,791)
(110,628)
(3,233,801)
(62,724)
(81,644)
(248,947)
(393,315)
•
5,549,084
5,775,775
Total
9,412,269
$
9,587,044
21
Fund Financial Statements
22
Statement C
TownofFranklinton
Balance Sheet - Governmental Funds
Street and
Drainage Sales
Tai Fund
General
Fund
Assets
Cash
Investments
Receivables, Net:
Intergovernmental
Accounts and Other
Franchise Taxes
Inventory
Prepaid Insurance
Restricted Cash
Total Assets
Liabilities and Fund Balances
Liabilities:
Accounts Payable
Retainage Payable
Compensated Absences
Other Accrued Expenses
Due to Other Governments
Due to Other Funds
Total Liabilities
$
$
$
Fund Balances:
Unreserved Fund Balances
Reserved Fund Balances
Total Fund Balances
Total Liabilities and Fund Balances
Total
Governmental
Funds
310,743 $
237,127
666,610 $
-
647,631 $
81,070
1,624,984
318,197
4,318,028
13,700
12,656
161,993
15,820
•
101,078
6,124
5,177,269 $
40,679
15,869
4,106
727,264 $
209,344
•
333,928
4,110
262,439
1,538,522 $
4,568,051
13,700
12,656
511,790
15,820
8,216
101,078
268,563
7,443,055
3,857,031 $
•
36,277
58,317
65,247
304,359
4,321,231
$
-
45,902 $
13,891
•
•
•
187,533
247,326
3,902,933
13,891
36,277
58,317
65,247
491,892
4,568,557
856,038
•
856,038
$
Other
Governmental
Funds
5,177,269 $
727,264
727,264
873,848
417,348
1,291,196
2,457,150
417,348
2,874,498
727,264 $
1,538,522 $
7,443,055
23
Statement D
Town of Franklin ton
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Financial Statement of Net Assets
Amounts reported for governmental activities in the Statement of Net Assets are different
because:
Fund Balances, Total Governmental Funds (Statement C)
2,874,498
Capital assets used in governmental activities are not financial resources and are
therefore not reported in the governmental funds.
4,972,883
Governmental capital assets net of depreciation
Long-term liabilities including bonds payable, loans payable, and compensated
absences are not due and payable in the current period and, therefore, are not reported
in the governmental funds. Current accrued interest on long term debt is also not
reported in the governmental funds.
Bonds Payable
Capital Leases Payable
(1,756,000)
(53,453)
(262,153)
Net Assets of Governmental Activities (Statement A)
5,775,775
24
Statement £
TownofFranklinton
Statement of Revenues, Expenditures and
Changes in Fund Balances - Governmental Funds
General Fund
Revenues
Taxes
Licenses and Permits
Intergovernmental
Fines and Forfeitures
Interest
Donations
Miscellaneous
Total Revenues
Expenditures
General Government
Public Safety:
Police
Fire
Public Works
Sanitation
Health and Welfare
Transportation
Amortization
Capital Outlays
Total Expenditures
Excess of Revenues Over (Under)
Expenditures
Streets and
Drainage
Sales Tax
32,137
78,000
35,975
2,561,757
518,382 $
31,413
549,795
617,359
.
1,364,850 $
358,745
451,774
164,391
75,885
-
1,110,335
90,765
551,536
143,494
324,761
3,749
1,621
2,843,620
(281,863) $
1,094,794
152,306
769,665
119,835
156335
107,104
72,760
77,543
3,154
•
895
(6,379)
403,824
811,207
1,217,439
163,525
664,683
143,494
327,915
3,749
1,791
(6,379)
525,280
3,811,162
393,460 $
283,587 $
35,604
896
-
714,815 $
-
Total
Governmental
Funds
2,598,047
358,745
620,443
164,391
75,885
(736)
126,557
227,039
35,975
4^06,346
(Continued)
25
Other
Governmental
Funds
168,669
-
(736)
63,007
149,039
-
395,184
Statement E
Town of FranUinton
Statement of Revenues, Expenditures and
Changes in Fund Balances - Governmental Funds
For die year ended October 31,2007
General Fund
Streets and
Drainage
Sales Tax
Other
Governmental
Funds
Total
Governmental
Funds
Other Financing Sources (Uses)
Bond Principal
Operating Transfers En
Operating Transfers (Out)
Sale of Fixed Assets
Capital Lease Proceeds
Capital Lease Principal
Total Other Financing Sources (Uses)
160,000
(156,431)
154,350
(5,481)
152,438
- $
•
25,000
(402,235)
•
(377,235)
Net Change in Fund Balances
(129,425)
16,225
(401,944)
(515,144)
Fund Balances, Beginning
985,463
711,039
1,693,140
3,389,642
Fund Balances, Ending
856,038
727.264 $
1,291,196 $
m
(Concluded)
26
(758,000) $
(161,548)
717,060
(528,614)
58,465
(12,894)
(685,531)
(758,000)
(161,548)
902,060
(1,087,280)
154,350
58,465
(18,375)
(910,328)
Statement F
Town of Franklinton
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Amounts reported for governmental activities in the Statement of Activities are different
because:
Net Chance in Fund Balances, Total Governmental Funds, Statement E
$
(515,144)
Governmental funds report capita! outlays as expenditures. However, in the statement of
activities the cost of these assets are allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which capital outlays exceeded
depreciation in the current period.
Expenditures for capital assets
Capital asset additions
Construction in progress
Less:
Current year depreciation
S
325,705
199,575
(452,193)
73,087
(154,350)
74,550
(79,800)
Governmental funds report sales of assets based on funds received; whereas the statement
of activities reports the gain or loss on the sale. Thus, the change in net assets differs by
the amounts reported as follows:
Sale of assets reported in fund statements
Gain on sales reported in statement of net assets
Compensated absences payable after one year are not recorded as an expenditure in the
governmental funds, but they are recorded as an expenditure in the statement of activities.
(This entry records the change in compensated absences)
(20,282)
Accrued interest for sales tax bonds is recorded in the government-wide statements only.
Therefore, the difference from the government-wide to fund statements is the increase or
decrease in accrued interest payable as follows:
Prior year balance for accrued interest payable
Current year balance for accrued interest payable
50,920
_
50,920
Repayment of bond principal and capital lease principal is an expenditure in governmental
funds but the repayment reduces long-term liabilities in the statement of net assets.
Proceeds obtained from obtaining long term debt are treated as revenue in governmental
funds but the amounts increase long-term liabilities in the statement of net assets.
Proceeds - capital leases
Principal payments - capital leases
Principal payments - long term debt
(58,465)
18,375
758,000
Change in Net Assets of Governmental Activities, Statement B
27
717,910
$
226,691
Statement G
Town of Fran kiln ton
Statement of Net Assets - Proprietary Funds
As of October 31, 2007
Assets
Current Assets:
Investments
Accounts Receivables, Net
Other Receivables
Inventory - Gas and Supplies
Prepaid Insurance
Restricted Assets:
Restricted Investments
Property, Plant, and Equipment
Land
Property, Plant and Equipment, Net
Total Property, Plant, and Equipment
41,503
1,820,562
288,264
1,587
6,050
70,072
6,754
36.486
2,271,278
254,430
75.000
329.430
3,300
4,018,896
4,022,196
6,622,904
Total Assets
Liabilities
Current Liabilities (Payable From Current Assets):
Accounts Payable
Due To Other Funds
Total Current Liabilities (Payable From Current Assets)
Current Liabilities (Payable From Restricted Assets):
Customer Deposits
Revenue Bonds Payable
Interest Payable on Long Term Debt
Total Current Liabilities (Payable From Restricted Assets)
Bonds Payable
2,473,327
38,527
2,511,854
Total Liabilities
2,811,635
75,566
9,552
16,669
25,948
127,735
135,683
29,238
7.125
172,046
Net Assets
Restricted for:
Unrestricted
186,622
2,105.016
Total Net Assets
3,811,269
1,519,631
28
Statement H
Town of Franklinton
Statement of Revenues, Expenses and
Changes in Net Assets - Proprietary Funds
Business-Type ActivitiesEnterprise Funds
Water
Gas Utility
Utility
Sewer Utility
System
System
System
Operating Revenues
Gas Sales
Less Cost of Gas Sold
Gross Profit on Gas Sales
Water Sales
Sewer Service Charges
Penalties
Other
Total Operating Revenues
1,228,671 $
(936,368)
292,303
$
-
-
444,685
3,797
3,797
7,283
455,765
-
648
296,748
Operating Expenses
Amortization
Bad Debts
Depreciation
Employee Benefits
Insurance
Meter Reading
Repairs and Maintenance
Salaries and Wages
Supplies
Utilities
Other
Total Operating Expenses
47,138
355,027
74,120
26,898
27,200
12,711
59,911
101,876
95,877
35,597
36,097
470,287
Operating Income (Loss)
(58,279)
433,140
3,797
4,631
441,568
276
-
Total
Proprietary
Funds
1,228,671
(936,368)
292,303
444,685
433,140
11,391
12.562
1.194,081
7,220
100,885
52,643
34,274
60,728
614,902
276
4,655
401,106
90,124
101,183
25,422
67,131
312,966
223,519
69,871
143.963
1.440,216
(14,522)
073.334)
(246,135)
10,616
49,402
-
4,127
31,836
(56,042)
4,668
31,577
(67,185)
19,411
112,815
(123,227)
60,018
(20,079)
(30,940)
1,739
(34,601)
(204,274)
(237,136)
333,726
(55,000)
3,820
(35,000)
7,674
(70,000)
345,220
(160,000)
Total Net Assets, Beginning
280,465
1,169,851
(65,781)
253,078
(266,600)
2,440,256
(51,916)
3,863.185
Total Net Assets, Ending
1,450,316 $
187,297 $
2,173,656
3,811.269
4,655
26,342
33,329
45,648
12,711
•
110,205
74,999
-
300,644
29,897
28,335
-
Non ope rating Revenues (Expenses)
Interest Income
Interest Expense
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Contributions and
Transfers
Contributions and Transfers
Operating Transfers In
Operating Transfers Out
29
8,999
Statement I
Town of Franklinton
Statement of Cash Flows -
Proprietary Funds
Enterprise
Fund
Cash Flows From Operating Activities
Received From Customers
Received for Meter Deposit Fees
Other Receipts
Received for Interfund Services
Payments for Operations
Payments to Employees
Net Cash Provided by Operating Activities
2,085,811
(29,005)
10,975
17,302
(1,516,350)
(415,291)
153,442
Cash Flows From Noncapital Financing Activities
Transfers From (To) Other Funds
Net Cash Provided by Noncapital Financing Activities
Cash Flows From Capital and Related Financing Activities
(Payments for) Capital Acquisitions
Principal Proceeds from (Repayments for) Long Term Debt
Interest Payments for Long Term Debt
Net Cash (Used) by Capital and Related Financing Activities
Cash Flows From Investing Activities
Receipt of Interest
Proceeds from sale (Payments) for Investments
Net Cash Provided by Investing Activities
185,220
185,220
(527,869)
(27,828)
(123,227)
(678,924)
112,815
(79,491)
33,324
Net Cash (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Year
(306,938)
602,871
Cash and Cash Equivalents, End of Year
295,933
Reconciliation of Cash and Cash Equivalents to the Statement of Net
Assets:
Cash and Cash Equivalents, Unrestricted
Cash and Cash Equivalents, Restricted
Total Cash and Cash Equivalents
41,503
254.430
295,933
(Continued)
30
Statement I
Town of Franklinton
Statement of Cash Flows Proprietary Funds
Enterprise
Fund
Reconciliation of Operating (Loss) to Net Cash Provided by Operating
Activities
Operating (Loss)
Adjustments to Reconcile Operating Income to Net Cash Provided by
Operating Activities:
Depreciation and amortization
(Increase) in Accounts Receivable
(Increase) in Other Receivable
Decrease in Inventory
(Increase) in Prepaid Insurance
Decrease in Due (to) and from Other Funds
Increase in Accounts Payable
Increase in Compensated Absences
Increase in Accrued Expenses
(Decrease) in Customer Deposits
$
401,382
(32,076)
(1,587)
35,944
(9310)
17,302
7,239
4,666
5,022
(29,005)
$
(Concluded)
Hie accompanying notes are an integral part of these financial statements.
31
(246,135)
153,442
32
Town of Franklinton
Introduction
The Town of Franklinton was incorporated March 7, 1861, under the provisions of a Special Legislative
Charter. The Town operates under a Mayor-Board of Aldermen form of government, with the Mayor and
each of five aldermen elected at-large for four year terms. Franklinton is located in west central
Washington Parish and is the governmental seat of the parish. In 1820, a legislative act created the parish
from the northern section of St. Tammany Parish and the next year another act designated the settlement
of Franklin as the seat of parish government. In 1826, the name was changed to Franklinton to avoid
conflict with another community in St. Mary Parish with the same name. The total population of
Franklinton was reported as 3,657 by the U.S. Census Bureau, Census 2000. The Town provides police
and fire protection, services to maintain or develop streets, drainage, and sanitation, support of recreation
activities, general and administrative services, and utilities services for area residents. Utility services are
provided for 1,027 gas customers, 1,599 water customers, and 1,594 sewer customers. The Town
employs 55 full-time and 1 part-time employees in addition to the Mayor and Board of Aldermen.
Governmental Accounting Standards Board (GASB) Statement No. 14 established criteria for
determining the reporting entity and component units that should be included within the reporting entity.
Under provisions of this statement, the Town of Franklinton is considered a primary government, since it
is a special purpose government that has a separately elected governing body, is legally separate, and is
fiscally independent of other state and local governments. As used in GASB Statement No. 14, fiscally
independent means that the Town may, without the approval or consent of another governmental entity,
determine or modify its own budget, levy its own taxes or set rates or charges, and issue bonded debt.
There are no other component units which the Town of Franklinton has an oversight relationship.
1. Summary of Significant Accounting Policies
A.
Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of nets assets and the statement of changes
in net assets) report information on all nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on fees
and charges for support. Likewise, the primary government is reported separately from certain legally
separate component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset 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 to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are repotted instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds,
even though the latter are excluded from the government-wide financial statements. Major individual
governmental funds and major individual enterprise funds are presented as separate columns in the fund
financial statements*
Town of Franklinton
B.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the 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 thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated 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 be susceptible to accrual and so have been recognized as revenues of the current fiscal
period. Only the portion of special assessment receivable, if any, due within the current fiscal period is
considered to be susceptible to accrual as revenue of the current period. All other revenue items are
considered to be measurable and available only when cash is received by the government.
The Town reports the following major governmental funds:
The General Fund is the Town's primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
The Streets and Drainage Sales Tax Fund accounts for the receipt and disbursement of fifty
percent of a one percent sales tax dedicated for the purpose of constructing, improving, and
maintaining streets and drainage facilities and improvements.
The Town reports the following major proprietary funds:
The Enterprise Funds account for operations (a) that are financed and operated in a manner
similar to private business enterprise where the intent of the governing body is that costs
(expenses, including depreciation) of providing goods or services to the general public on a
continuing basis be financed or recovered primarily through user fees, or (b) where the governing
body has decided that periodic determination of revenues earned, expenses incurred, and/or net
income is appropriate for capital maintenance, public policy, management control, accountability,
or other purposes.
34
Town of Franklinton
Additionally, the government reports the following fund types:
Special Revenue Funds - account for the proceeds of specific revenue sources that are legally
restricted to expenditures for specific purposes.
The Debt Service Fund accounts for resources set aside for payment of principal and interest on
the Series 2002 Certificates of Indebtedness sales tax issue.
The Capital Project Funds accounts for financial resources received and used for acquisition,
construction, or improvement of capital facilities not reported in other governmental fiinds. For
the current fiscal year ended, this includes the Sales Tax Construction Fund and the Grant
Construction Fund.
Private-sector standards of accounting and financial reporting issued prior to December 1,1989, generally
are followed in both the government-wide and proprietary fund financial statements to the extent that
those standards do not conflict with or contradict guidance of the Governmental Accounting Standards
Board. Governments also have the 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. Exceptions to this general rule, if applicable, are payments-in-lieu of taxes and other charges
between the government's enterprise operations. Elimination of these charges would distort the direct
costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the proprietary funds are user charges for the services provided by the enterprise funds. Operating
expenses for enterprise funds and internal service funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Town's policy to use
restricted resources first, then unrestricted resources as they are needed.
C.
Deposits and Investments
The Town's cash and cash equivalents are considered to be cash on hand, demand deposits, and shortterm investments with original maturities of three months or less from the date of acquisition. State law
and the Town's investment policy allow the Town to invest in collateralized certificates of deposit,
government-backed securities, commercial paper, the state-sponsored investment pool, and mutual funds
consisting solely of government-backed securities.
35
Town of Franklintoo
Investments for the Town are reported at fair market value. The state investment pool, LAMP, operates
in accordance with state laws and regulations. The reported value of the pool is the same as the fair value
of the pool shares.
D.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end
of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of intertund
loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). Ali other
outstanding balances between funds are reported as "due to/from other funds." Any residual balances
outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as "internal balances."
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve
account in applicable governmental funds to indicate that they are not available for appropriation and are
not expendable available financial resources.
All trade and property tax receivables are shown net of an allowance for uncollectible amounts.
Property taxes are levied on a calendar year basis and become due on January 1 of each year. The
following is a summary of authorized and levied ad valorem taxes
Authorized
Levied
Collected
Millage
General Corporate Purposes
Police ad volorem
Street and drainage ad valorem
7.24 mills
5.18 mills
7.24 mills
Millage
$
120,191 $
85,994
120,191
Millage
116,476
81,926
114,456
Sales and use taxes are levied at two percent. The proceeds of the 1% sales and use taxes are dedicated
for the purpose of constructing, improving, extending, and maintaining playgrounds and recreational
facilities, public roads, streets, bridges and crossings, sewerage, garbage disposal and water works, and
other works of permanent public improvements in the municipality.
On July 21, 2001, the voters of the Town of Franklinton passed a second 1% sales tax for a period of 10
years. This 1% sales tax is dedicated as follows:
1)
50% for constructing, improving and maintaining streets and drainage facilities and
improvements.
2)
20% for acquiring, improving, maintaining and operating equipment
3)
20% for acquiring, constructing, improving, maintaining and operating public buildings and
facilities.
4)
10% for promoting and encouraging the location and development of commerce and industry,
including land and buildings therefore, with the proceeds of the tax to be subject to being funded
into bonds.
36
Town of Franklinton
E.
Inventories and Prepaid Items
AH inventories are valued at cost using the first-in/first-out method. Inventories of the governmental
funds are recorded as expenditures when consumed rather than when purchased. Certain payments to
vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both
government-wide and fund financial statements.
F.
Restricted Assets
Certain proceeds of the enterprise fond revenue bonds, as well as certain resources set aside for their
repayment, are classified as restricted assets because their use is limited by applicable bond covenants.
G.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar 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 not available. 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.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part of
the capitalized value of the assets constructed.
All capital assets, other than land, are depreciated using the straight-line method over the following useful
lives:
Description
Buildings & Improvements
Infrastructure
Gas System
Water System
Sewer System
H.
Estimated Lives
20 - 40 Years
5 - 1 5 Years
20 - 40 Years
20 - 40 Years
20 - 40 Years
20 - 40 Years
Prior to the fiscal year ending October 31, 2003, employees of the municipality earned annual leave at
varying rates according to years of service. Accrued unused annual leave earned by an employee was
carried forward to the succeeding calendar year until a maximum of twenty days accumulation. On
March 9,2004, the Board of Aldermen passed a Resolution authorizing the conversion of unused annual
37
Town of Franklinton
leave (above the twenty days accumulation) and unused sick leave to retirement credit. The Resolution
dated March 9, 2004, was issued pursuant to Act 999 of the 2001 Regular Session of the Louisiana
Legislative and in accordance with a Memorandum dated January 13, 2002, entitled Conversion of
Unused Annual and Sick Leave to Retirement Credit, as issued by the Municipal Employee's Retirement
System of Louisiana,
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 as issuance costs, are deferred and amortized over the life of the bonds
using the effective interest method. Bonds payable are reported net of the applicable bond premium or
discount. Bond issuance costs are reported as deferred charges 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 bond issuance 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 are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
J.
Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for amounts that
are not available for appropriation or are legally restricted by outside parties for use for a specific
purpose. Designations of fund balance represent tentative management plans that are subject to change.
K.
Comparative Data/Reclassifications
Comparative total data for the prior year have been presented only for individual enterprise funds in the
fund financial statements in order to provide an understanding of the changes in the financial position and
operations of these funds. Certain amounts presented in the prior year data have been reclassifled in order
to be consistent with the current year's presentation.
L.
Extraordinary and Special Items
Extraordinary items are transactions or events that are both unusual in nature and infrequent in
occurrence. Special items are transactions or events within the control of the municipality, which are
either unusual in nature or infrequent in occurrence.
M.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America require management to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reported period.
Actual results could differ from those estimates.
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Town of Franklinton
N.
Reconciliations of Government-Wide and Fund Financial Statements
Explanation of certain differences between the governmental fund balance sheet and the government-wide
statement of net assets is presented in Statement D of the basic financial statements. Explanation of
certain differences between the governmental fund statement of revenues, expenses, and changes in fund
balances and the government-wide statement of activities is presented in Statement F of the basic
financial statements.
2. Stewardship, Compliance and Accountability
The Town uses the following budget practices:
1. The Town Clerk prepares a proposed budget and submits same to the Mayor and Board
of Aldermen no later than fifteen days prior to the beginning of each fiscal year.
2. A summary of the proposed budget is published and the public notified that the proposed
budget is available for public inspection. At the same time, a public hearing is called.
3.
A public hearing is held on the proposed budget at least ten days after publication of the
call for the hearing.
4. After the holding of the public hearing and completion of all action necessary to finalize
and implement the budget, the budget is adopted through passage of an ordinance prior to
the commencement of the fiscal year for which the budget is being adopted.
5. After the holding of the public hearing and completion of all action necessary to finalize
and implement the budget, the budget is adopted through passage of an ordinance prior to
the commencement of the fiscal year for which the budget is being adopted.
6. Budgetary amendments involving the transfer of funds from one department, program or
function to another or involving the increase in expenditures resulting from revenues
exceeding amounts estimated, require the approval of the Board of Aldermen.
7. All budgetary appropriations lapse at the end of each fiscal year.
8. Budgets for the general and enterprise funds are adopted on a basis consistent with
generally accepted accounting principles (GAAP). Budgets for enterprise funds are
presented on the accrual basis of accounting. Other governmental funds are presented on
the modified accrual basis of accounting. Accordingly, the budgetary comparison
schedules present actual expenditures in accordance with the accounting principles
generally accepted in the United States on a basis consistent with the legally adopted
budgets as amended. AH budgetary amounts presented reflect the original budget and the
amended budget (which have been adjusted for legally authorized revisions of the annual
budget during the year).
The proposed budget for October 31, 2007 was made available for public inspection on
September 20, 2006. The proposed budget, prepared on the modified accrual basis of
accounting, was published on September 20, September 27, and October 4, 15 days prior to
39
Town of Franklinton
the public hearing which was held at the Town of Franklinton's City Hall on October 10,
2006, for comments by taxpayers. The budget was legally adopted by the board of aldermen
on October 24,2006.
The following funds had actual revenues and other sources below budgeted revenues and other sources, or
actual expenditures and other uses over budgeted expenditures and other uses, resulting in unfavorable
variances greater than 5% which were in violation of the Local Government Budget Act, for the fiscal
year ended October 31,2007:
Final Budget
Expenditures
Streets and Drainage Ad Valorem
Equipment Sales Tax Fund
Industrial Development Sales Tax
$
29,800 $
207,950
241,300
Actual
81,633 $
264,480
436,355
Unfavorable
Variance
(51,833)
(56,530)
(195,055)
The expenditure variance above in the Streets and Drainage Ad Valorem fund occurred since a bush hog
totaling $21,000 was purchased at fiscal year end, with the purchase occurring subsequent to year-end
planning for budget amendments.
The negative expenditure variance in the Equipment Sales Tax was due to a year-end entry recording a
$58,465 equipment purchase for the water department in the Enterprise Fund. The capital lease is
recorded in the Equipment Sales Tax Fund since lease payments will initially be made from sales tax
proceeds. Responsibility for payment of the lease will be transferred to the Enterprise Fund as funds
become available.
The negative variance in the Industrial Development Sales Tax fund occurred for two reasons. A total of
$34,856 was recorded at fiscal year end for accounts payable. In addition, reimbursements of $149,039
from the Franklinton Area Economic Development Foundation (FAEDF) for construction projects were
reclassified at fiscal year end to a revenue account. Reimbursement had previously been credited to an
expenditure account.
The Town of Franklinton has indicated that they will more closely monitor budget-to-actual revenue and
expenditure levels at fiscal year end and modify the budget accordingly.
40
Town of Franklinton
3. Cash and Cash Equivalents
At October 31, 2007, the Town has cash and cash equivalents (book balances), as fol lows:
Demand Deposits
$
$
2,189,480
2,189,480
These deposits are stated at cost, which approximates market. Under state law, these deposits (or the
resulting bank balances) must be secured by federal deposit insurance or the pledge of securities owned
by the fiscal agent bank. The market value of the pledged securities plus the federal deposit insurance
must at all times equal the amount on deposit with the fiscal agent. These securities are held in the name
of the pledging fiscal agent bank in a holding or custodial bank that is mutually acceptable to both parties.
At October 31, 2007, the Town has $3,194,517 in deposits (collected bank balances), within one bank,
consisting of $2,710,877 in demand deposits and $483,640 in time and savings deposits (certificates of
deposit). The demand deposits are secured from risk by $100,000 of federal deposit insurance and
$2,610,877 of pledged securities held by the custodial bank in the name of the fiscal agent bank (GASB
Category 3). The time and savings deposits are secured from risk by $100,000 of federal deposit
insurance and $383,640 of pledged securities held by the custodial bank in the name 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 pledged securities within 10 days of being notified by the municipality that
the fiscal agent has failed to pay deposited funds upon demand.
4. Investments
Investments are categorized into these three categories of credit risk:
1. Insured or registered, or securities held by the town or its agent in the Town's name
2. Uninsured and unregistered, with securities held by the counterparty's trust department or agent
in the Town's name
3. Uninsured and unregistered, with securities held by the counterparty, or by its trust department or
agent but not in the Town's name
All investments held by the Town fall into category 1 credit risk, defined as "insured or registered, or
securities held by the Town or its agent in the Town's name." In accordance with GASB 31, Accounting
and Financial Reporting for Certain Investments and for External Investment Pools, all investments are
carried at fair market value, with the estimated fair market value based on quoted market prices.
41
Town of Franklinton
At October 31,2007, the Town's investment balances were as follows:
Government National Mortgage Association
(GNMA)
Maturity Date
January 20,2014 $
March 20,2028
April 20,2014
May 20,2032
Carrying
Fair Market
Amount
Value
3,020 S
2,970
1,931
1,965
4,113
3,844
1,626
1,581
10,724
10,326
December 1,2008
February 15,2015
March 27,2018
September 15,2018
June 11,2021
January 15,2023
February 15,2025
May 15,2030
April 15,2034
646
250,000
170,000
149,204
141,385
160,000
85,000
60,000
8,972
1.025,207
762
247,275
165,806
150,015
143,457
154,170
80,067
59,637
8,354
1,009,543
Federal National Mortgage Association
(FNMA)
May 30,2023
June 25,2033
49,450
14,585
64,035
48,105
12,419
60,524
Federal Home Loan Bank
(FHLB)
April 19,2011
69,310
69,090
Money Market
580,636
580,636
Certificates of Deposit
483,640
483,640
Federal Home Loan Mortgage Corporation
(FHLMC)
Total $
2,233,552 $
2,213,759
All investments are stated on the balance sheet (carrying value) at market value. All investments are in
the name of the Town and are held at the Town's office. Because these investments are in the name of
the Town and are held by the Town or the Town's agent, the investments are considered insured and
registered, Category (1), in applying the credit risk of GASB Codification Section 150.164.
Interest Rate Risk: The Town does not have a formal investment policy that limits investments maturities
as a means of managing its exposure to fair value arising from increasing interest rates.
42
Town of Franklinton
5. Receivables
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet
received. Allowances for uncollectible accounts are based upon historical trends and the period aging and
write-off of accounts receivable. Major receivables balances for the governmental activities include sales
taxes, franchise taxes, occupational licenses, and fines. Business-type activities report utilities earnings as
their major receivable.
In the fund financial statements, material receivables in governmental funds include revenue accruals
such as sales tax, franchise taxes, occupational licenses, fines, and other similar intergovernmental
revenues since they are usually both measurable and available. Non-exchange transactions collectible but
not available are deferred in the fund financial statements in accordance with modified accrual, but not
deferred in the government-wide financial statements in accordance with the accrual basis. Interest and
investment earnings are recorded only if paid within 60 days since they would be considered both
measurable and available. Proprietary fund revenues consist of all revenues earned at year-end and not
yet received. Utility accounts receivable comprise the majority of proprietary fund receivables.
Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging
and write-off of accounts receivable.
The Governmental Fund receivables at October 31,2007 consist of the following:
Government Receivables
Accounts
Special
Capital Project
General Fund Revenue Funds
Funds
$
9,734 $
- $
- $
Total
9,734
Taxes:
Sales Tax Receivable
Franchise Tax
Intergovernmental:
Federal Emergency Management Agency
State of Louisiana
LA Department of Tramporation - Council on Aging
Accrued Interest
Total Government Receivables
$
77,104
12,656
4,174,617
7,804
58,503
3,966
4,344,384 $
77,104
4,250
81,354 $
-
154,208
12,656
168,669
168,669 $
4,174,617
180,723
58,503
3,966
4,594,407
For financial statement presentation, sales tax receivable amounts are included within the category of
intergovernmental revenues.
43
The Enterprise Fund accounts receivable at October 31,2007 consist of the following:
Accounts Receivable
Current
31-60 Days
61 - 90 Days
Over 90 Days
Subtotal
Less Allowance for Bad Debt
Unbilled Receivables
Total Accounts Receivable
Enterprise
Fund
154,185
14,064
4,182
6,077
178,508
178,508
109,756
288,264
6. Restricted Assets
The following is a listing of the restricted assets for the fund financial statements on October 31,2007:
The Restricted Assets for all funds at October 31,2007 consist of the following:
Debt Service
Capital Project
Fond
Funds
Restricted Assets
General Fund
- $
271,830 S
•
Customer Deposits
Bond Contingency Account
•
(9,391)
Bond Sinking Account
Construction Account
6,124
•
Police Reserve and Deposits
Investments - Customer Deposits
•
$
6TI24
(9,391) $
271,830 $
44
Enterprise
Fund
• $
58,621
59,623
18,619
60,222
75,000
329,430 $
Total
271,830
58,621
59,623
9,228
60,222
6,124
75,000
597,993
Town of Franklinton
7, Intel-fund Receivables/Payables
The following is a detailed list of interfund balances for fund financial statements on October 31,2007:
Due From
Other Funds
Intel-fund Balances
General Fund
Ad Valorem Police
Ad Valorem Streets and Drainage
Sales Tax Streets and Drainage
Sales Tax Equipment
Sales Tax Buildings and Facilities
Sales Tax Industrial Devlopment
Enterprise Fund
Debt Service Fund
Special Revenue Funds
Ad Valorem Police
General Fund
Enterprise Fund
Capital Projects Fund
General Fund
Enterprise Fund
General Fund
Sales Tax Equipment
Sales Tax Equipment
General Fund
General Fund
General Fund
Capital Projects Funds
Sales Tax Construction Fund
Ad Valorem Police
Debt Service Fund
General Fund
Enterprise Fund
Ad Valorem Police
General Fund
Total Interfund Balances
Due To Other
Funds
2,700 $
240,750
100,000
5,685
21,739
35,592
18,016
1,050
40,820
2,700
5,000
33,556
240,750
7,932
100,000
10,869
5,000
4,348
5,685
5,000
4,348
2,174
35,592
33,556
40,820
5,000
1,050
517,840 $
45
7,932
18,016
517,840
Town of Franklinton
The reason for the interfund receivables/payables balances is the General Fund pays expenses of other
funds and is reimbursed as funds are available. In addition, the Ad valorem Streets and Drainage Fund is
due reimbursement from the General Fund, pending final determination of amounts due from FEMA.
8. Capital Assets
The following is a summary of the changes in capital assets for governmental activities for the fiscal year
ended October 31,2007:
Ending
Beginning
Governmental Activities Capital Assets:
Balance
Balance
Increases
Decreases
Capital Assets Not Being Depreciated:
514,727
Land
594,527 $
(79,800) $
- $
Construction in Progress
199,575
199,575
Total Capital Assets Not Being Depreciated
594,527
199,575
714,302
(79,800)
Capital Assets Being Depreciated:
4,361,628
3,610
4,365,238
1,150,479
1,388,342
237,863
125,523
9,728
135,251
•
864,737
Vehicles
37,000
872,387
(29,350)
Infrastructure
37,504
111,644
74,140
Total Capital Assets Being Depreciated
6,576,507
6,872,862
325,705
(29,350)
Less Accumulated Depreciation for:
(815,550)
(190,713)
(1,006,263)
(638,771)
(129,660)
(768,431)
•
(76,441)
(93,767)
(17,326)
Vehicles
(653,512)
(107,601)
29,350
(731,763)
Infrastructure
(7,165)
•
(14,057)
(6,892)
Total Accumulated Depreciation
(2,191,439)
(452,192)
29,350
(2,614,281)
Total Capital Assets Being Depreciated, Net
4,385,068
(126,487)
4,258,581
Total Governmental Activities Capital Assets,
Net
4,979,595 $
73,088 $
4,972,883
(79,800) $
Depreciation was charged to governmental functions as follows:
General Government
Public Safety
Public Works
30,814
191,210
230,169
452,193
Construction in progress of $199,575 consists of $161,536 incurred for the Business Park Property
Acquisition and Development project, $30,906 for initial costs of the Industrial Site Building/Grand Iste
Shipyards project, and $7,133 for initial costs of the Airfield Lighting and NAVAIDS Improvements
project.
46
Town of Franklinton
Capital assets and depreciation activity as of and for the year ended October 31, 2007 for
activities is as follows:
Beginning
Balance
Increases
Decreases
Business - Type Activities Capital Assets:
Capital Assets Not Being Depreciated:
3,300 $
- $
$
Land
424,651
(1,298,298)
873,647
Construction in Progress - Sewer System
424,651
Total Capital Assets Not Being Depreciated
876,947
(1,298,298)
Capital Assets Being Depreciated:
1,029,227
Gas Utility System
2,552,638
6,820
•
5,487,669
1,352,969
Total Capital Assets Being Depreciated
9,069,534
1,359,789
Less Accumulated Depreciation for:
(913,954)
(26,342)
Gas Utility System
(74,120)
(1,740,559)
(300,644)
(3,354,808)
(6,009,321)
Total Accumulated Depreciation
(401,106)
Total Capital Assets Being Depreciated, Net
3,060,213
958,683
Total Business-Type Activities Capital Assets,
$
Net
3,937,160 $
1,383,334 $
(1,298,298) $
business-type
Ending
Dilute.
3,300
3,300
1,029,227
2,559,458
6,840,638
10,429,323
(940,296)
(1,814,679)
(3,655,452)
(6,410,427)
4.018,896
4,022,196
During the fiscal year, construction was completed at a total cost of $1,298,298, consisting of $949,709
for the Section Line/Industrial Sewer Improvements project, and $348,589 for the Bruce Street, Webb
Street, and Industrial Park Sewer Improvements project. The Franklinton Area Economic Foundation
(FAEDF) provided a total of $199,039 for reimbursement of costs for the Bruce Street, Webb Street, and
Industrial Park Sewer Improvements project.
47
Town of Franklintoo
9. Interfiled Transfers
The following is a detailed list of interfund transfers reported in the fund financial statements on
October 31,2007:
Interfund Transfers
General Fund
Police Advalorem
Enterprise Fund
Special Revenue Funds
Ad Volorem Police
General Fund
General Fund
Sales Tax Construction Capital Projects Fund
Debt Service Fund
Sales Tax Equipment
Enterprise Fund
Capital Projects Fund
Debt Service Fund
Debt Service Fund
General Fund
Enterprise Fund
Capital Project Funds
Capital Projects Funds
Sales Tax Construction Fund
Sales Tax Equipment
Grant Construction Fund
Debt Service Fund
Sales Tax Equipment
Enterprise Fund
Sales Tax Equipment
Industrial Development Fund
General Fund
Total Interfund Transfers
48
Transfers In
$
Transfers Out
- $
12,910
160,000
25,000
-
25,000
22,900
95,621
12,910
132,842
269,393
12,894
-
97,961
-
122,451
22,900
-
236,605
45,709
132,842
14,803
12,994
12,894
30,906
269,393
97,961
122,451
$
12,994
236,605
95,621
1,247,280 $
160,000
1,247,280
Town of Franklinton
The primary reason for the transfers was to transfer fimds from the sales tax revenue funds for debt
service and equipment and construction projects per requirements of the 2002 Sales Tax Bond Issue.
Funds were also transferred primarily between the General Fund and Enterprise Fund to fund operating
requirements per budget approvals.
10. Accounts, Salaries, and Other Payables
The Governmental Fund payables at October 31,2007 are as follows:
Special
Revenue
Governmental Funds Payable
General Fund
Funds
Accounts:
3,831,592 $
Hurricane Katrina Related
$
25,439
38,769
Other
21,762
Accrued Salaries
Retainage Payable
36,277
-
Capital
Projects
Funds
$
-
Total
$
13,891
-
3,831,592
64,208
21,762
13,891
36,277
Due to Other Governments:
65,247
36,555
-
4,016,872 $
38,769
Due to Council on Aging
Other
Total Government Funds Payable
$
7,133
$
21,024 $
65,247
43,688
4,076,665
The Enterprise Fund payables at October 31, 2007 are as follows
Total
Enterprise Funds Payable
Accounts
Accrued Salaries
Other
Total Enterprise Funds Payable
S
$
Water Utility
Gas Utility
Sewer Utility
57,604 $
17,962 $
$
2,265
2,024
2,023
4,890
3,579
1,083
8,843
2,069
(555)
73,602 $
25,634 $
2,551 $
Enterprise
Fund
75,566
6,312
9,552
10,357
101,787
11. Short-Term Debt
The Town had no short-term debt outstanding at October 31, 2007, other than the current portions of
revenue bonds payables described in the long term debt footnote.
49
Town of Franklinton
12. Long-Term Obligations
The following is a summary of long-term obligation transactions for the year ended October 31,2007:
Beginning Balance
$
Additions
Deletions
Ending Balance
$
Capital
Revenue Bonds
Leases
13,363 $
2,514,000 $
58,465
(18,375)
(758,000)
53,453 $
1,756,000 $
Total
Capital
Long-Term
Leases
Revenue Bonds
Obligations
- $
2,530,393 $
5,057,756
58,465
(27,828)
(804 303)
2,502,565 $
4,312,018
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 the long-term obligations:
Total
Capital
Capital
Long-Term
Leases
Revenue Bonds
Leases
Revenue Bonds
Obligations
Current Portion
$
16,165 S
S
- $
29,238 $
45,403
Long-Term Portion
37.288
1,756,000
2,473,327
4,266,615
$
53,453 $
1,756,000 $
$"
2,502,565 $
4,312,018
Bonds Payable as of October 31,2007 are as follows:
Bonds Payable
End of Year
Business Type:
Dated 06/03/02
$2,923
Business Type:
Dated 12/31/06
$6,102
Business Type:
Dated 03/29/06
$135,841
Governmental:
Dated 06/12/02
$483,210
$ 560,000 of Sewer Revenue Bonds, Series 2002
, due in monthly installments of principal and interest of
, through 06/03/2032, interest at 4.75%.
$1,250,000 of Water Revenue Bonds
, due in monthly installments of principal and interest of
, from 01/26/1997 to 12/26/2036, interest at 5.125%.
$ 900,000 of Certificate of Indebtedness Sewer 2006
, due in annual installments of principal and interest ranging up to
, from 04/01/2007 to 02/01/2016, interest at 4.75%.
$ 3,520,000 Certificates of Indebtedness, Series 2002
, due in annual installments of principal and interest ranging up to
, from 11/01/2011, interest at 4.75%.
50
508,632 $
1,093,933
Due Within One
Year
11,169
18,069
900,000
1,756,000
4,258,565 $
29,238
Town of Franklinton
The annual requirements to amortize all debt outstanding at
payments of $1,855,504 are as follows:
Water
Sewer
Year Ending
Sewer Cert
Revenue
Revenue
10/31/07
Bonds
oflndebt
Bonds
42,750 $
73,218 $
2008
35,078 $
73,218
134,518
2009
35,078
73,218
2010
35,078
134,934
35,078
73,218
2011
135,113
135,054
73,218
35,078
2012
366,090
542355
2013 to 2017
175392
366,090
2018 to 2022
175392
366,090
175^92
2023 to 2027
366,090
2028 to 2032
163,699
305,075
2033 to 2037
$
865,265 $ 1,124,724 $ 2,135,525 $
October 31, 2007, including interest
Govt'lCertof
Indebt
41,705 $
480,744
481,913
482,084
483,210
1,969,656 $
Govt'lCapital
Leases
18,508 $
15,162
12,894
12,894
12,894
•
•
72352 $
Total
211,259
738,720
738,037
738,387
739,454
1,083,837
541,482
541,482
529,789
305,075
6,167,522
Dedication of Proceeds and Flow of Funds - 2% Sales and Use Tax
Proceeds of the initial one percent sales, totaling $1,051,997 in collections for 2007 including State P&M
sales tax collections, and use tax levied by the Town are dedicated with the revenues derived from said
sales and use tax to be used for the purpose of constructing, improving, extending, and maintaining
playgrounds and recreational facilities; public roads, streets, bridges and crossings; sewerage, garbage
disposal and water works, and other works of permanent public improvements in the municipality.
On July 21,2001, the voters of the Town of Franklinton passed a second 1% sales tax for a period of 10
years. This 1% sales tax is dedicated as follows:
1)
50% for constructing, improving and maintaining streets and drainage facilities and
improvements. Collections for 2007, including State P&M sales tax collections,
were $518382.
2)
20% for acquiring, improving, maintaining and operating equipment. Collections for
2007, including State P&M sales tax collections, were $207,353.
3)
20% for acquiring, constructing, improving, maintaining and operating public
buildings and facilities. Collections for 2007, including State P&M sales tax
collections, were $207,353.
4)
10% for promoting and encouraging the location and development of commerce and
industry, including land and buildings thereof, with the proceeds of the tax to be
subject to being funded into bonds. Collections for 2007, including State P&M sales
tax collections, were $103,676.
51
Town of Franklinton
13. Flow of Funds, Restrictions on Use - Enterprise Fund and Government Fund Bonds
Sewer Revenue Bonds - Series 2002
The Sewer Revenue Bonds, Series 2002, issued by the United States Department of Agriculture, Rural
Utilities Service, require that all income and revenues earned or derived from the operation of the system
be deposited in the Revenue Fund. Out of the funds on deposit in the Revenue Fund, after reasonable and
necessary expenses of operating the system have been paid, moneys are to be transferred to the Sinking
Fund, the Reserve Fund and/or the Contingency Fund as provided in the Resolution.
The Sinking Fund is designed to achieve a proper matching of revenues and debt service on the bonds
with each bond year. The municipality is required by the Resolution to make monthly deposits into the
Sinking Fund no later than the 20th day of each month, a sum of $2,924. Amounts deposited in the
Sinking Fund will be applied to the payment of principal and interest on the bonds in the bond year of
their receipts. The municipality has elected to make these payments monthly to RUS.
The Reserve Fund is maintained solely for the purpose of paying the principal of and interest on bonds
payable from the Sinking Fund as to which there would otherwise be default. A sum of $147 per month
must be deposited into this fund no later than the 20* day of each month until $35,078 is on deposit
therein. This Reserve Fund is fully funded at October 31,2007 with a balance maintained of $10,538.
The Contingency Fund is established to care for depreciation, extensions, additions, improvements,
renewals and replacements necessary to operate properly the System, by transferring from the Water
Revenue Fund on or before the 20th day of each month of each year a sum of $147. The amount to be
deposited per month is to increase to $293 per month once $35,078 has been accumulated in the Reserve
Fund. In addition to caring for depreciation, extensions, additions, improvements, renewals and
replacements necessary to properly operate the System, the money in the Contingency Fund may also be
used to pay the principal of and the interest on the bonds including any additional pari passu bonds issued
hereafter in the manner provided by the Resolution, for the payment of which there is not sufficient
money in the Sinking Fund or Reserve Funds. This Contingency Fund is fully funded at October 31,
2007 with a balance maintained of $10,538.
Water Revenue Bonds
The Water Revenue Bonds, Series 1996, issued by the United States Department of Agriculture, Rural
Utilities Service, require that all income and revenues earned or derived from the operation of the system
be deposited in the Revenue Fund. Out of the funds on deposit in the Revenue Fund, after reasonable and
necessary expenses of operating the system have been paid, moneys are to be transferred to the Sinking
Fund, the Reserve Fund and/or the Contingency Fund as provided in the Resolution.
The Sinking Fund is designed to achieve a proper matching of revenues and debt service on the bonds
with each bond year. For purposes of this certificate, "Bond Year" shall mean 1 year period ending on
each principal payment date of the bonds, which is December 26. The municipality is required by the
Resolution to make monthly deposits into the Sinking Fund no later than the 20th day of each month, a
sum of $6,101. Amounts deposited in the Sinking Fund will be applied to the payment of principal and
interest on the bonds in the bond year of their receipts. The Town has elected to make these payments
monthly to RUS.
52
Town of Franklinton
The Reserve Fund is maintained solely for the purpose of paying the principal of and interest on bonds
payable from the Sinking Fund as to which there would otherwise be default. The Reserve Fund is
established by depositing $306 monthly into the Reserve Fund commencing with the month following the
completion of the project. This fund is fully funded as of October 31,2007, with a balance maintained of
$46,807.
The Contingency Fund is established to care for depreciation, extensions, additions, improvements,
renewals and replacements necessary to operate properly the System, by transferring from the Water
Revenue Fund on or before the 20th day of each month of each year a sum of $321, provided such sum is
available as provided in the Resolution. In addition to caring for depreciation, extensions, additions,
improvements, renewals and replacements necessary to properly operate the System, the money in the
Contingency Fund may also be used to pay the principal of and the interest on the bonds including any
additional pari passu bonds issued hereafter in the manner provided by the Resolution, for the payment of
which there is not sufficient money in the Sinking Fund or Reserve Funds. This Fund is fully funded at
October 31, 2007, with a balance maintained of $49,085
Certificates of Indebtedness, Series 2006 - Sewer Bonds
On March 29, 2006, the Town of Franklinton issued $900,000 of Certificates of Indebtedness, Series
2006, for the purpose of financing sewer improvements. Under the terms of the bond agreement, the
Certificates shall be secured by and payable solely from a pledge and dedication of the excess of annual
revenues of the Issuer above statutory, necessary and usual charges in each of the fiscal years during
which the Certificates are outstanding, subject to the payment of the principal and interest falling due on
the Prior Lien Certificates. For the payment of the principal of and the interest on the Certificates, there is
hereby created a special fund to be known as *Town of Franklinton, State of Louisiana , Certificates of
Indebtedness, Series 2006, Sinking Fund", said Sinking Fund to be established with the regularly
designated fiscal agent of the Issuer. The Issuer shall deposit in said Sinking Fund monthly in advance on
or before the 20th of each month, commencing February 2006, a sum equal to one-sixth of the interest
falling due on the next interest payment date for the period February, 2006 through January, 2008 and
thereafter 1/6 of the interest falling due on the next interest payment date and one-twelfth of the principal
falling due on the next principal payment date, together with such additional proportionate sum as may be
required to pay said principal and interest as the same fall due. At October 31, 2007, this Fund was fully
funded with a balance of $14,685.
Certificates of Indebtedness, Series 2002 - Sales Tax Bonds
The issuer, the Town of Franklinton, agrees to budget annually a sum of money sufficient to pay the
interest and principal on the Certificates as the same become due and to levy and collect in each year
taxes, including, but not limited to, the issuer's 1 % sales and use tax authorized to be levied through
September 20, 2011, pursuant to an election held in the Issuer on July 20, 2001, 90% of the avails of
which are authorized to be expended for the purposes for which the Certificates are issued, and to collect
other revenues within the limits prescribed by law, sufficient to pay the principal of and the interest on the
Certificates after the payments in such years of all statutory, necessary and usual charges.
During the fiscal year ended October 31, 2007, the Town of Franklinton accumulated sufficient funds to
fund the annual debt service installment of $429,708, due November 1, 2007, paying the required debt
installment on October 31, 2007. However, the required monthly deposit of $40,820 for October 2007
was incorrectly deposited in the General fund. This resulted in a negative cash balance of $9,391 at
53
fiscal year end for the Debt Service fund. Funds due from the General Fund to the Debt Service fund
were transferred after fiscal year end.
14. Retirement Systems
Substantially all employees of the Town of Franklinton are members of the following statewide
retirement systems: Municipal Employees Retirement System of Louisiana or Municipal Police
Employees Retirement System of Louisiana. These systems are a cost-sharing, multiple-employer public
employee retirement system (PERS), controlled and administered by a separate board of trustees.
Pertinent information relative to each plan follows:
A. Municipal Employee Retirement System of Louisiana (System)
Plan Description. The System is composed of two distinct plans, Plan A and Plan B, with separate assets
and benefit provisions. All employees of the municipality are members of Plan B.
All permanent employees working at least 35 hours per week who are not covered by another pension
plan and are paid wholly or in part from municipal funds and all elected officials are eligible to participate
in the System. Under Plan B, employees who retire at or after age 60 with at least 10 years of creditable
service or at or after age 55 with at least 30 years of creditable service are entitled to a retirement benefit,
payable monthly for life, equal to 3 per cent of their final-average salary for each year of creditable
service. Furthermore, with at least 10 years of creditable service, but less than 30 years, an employee may
take early retirement benefits commencing at age 60, with the basic benefit reduced 3 per cent for each
year retirement precedes age 60, unless he has at least 30 years of creditable service. In any case,
monthly retirement benefits paid under Plan B cannot exceed 100 percent of final-average salary. Finalaverage salary is the employee's average salary over the 36 consecutive or joined months that produce the
highest average. Employees who terminate with at least the amount of creditable service stated above and
do not withdraw their employee contributions may retire at the ages specified above and receive the
benefit accrued to their date of termination. The System also provides death and disability benefits.
Benefits are established by state statute.
The System issues an annual publicly available financial report that includes financial statements and
required supplemental information for the System. That report may be obtained by writing to the
Municipal Employees Retirement System of Louisiana, 7937 Office Park Boulevard, Baton Rouge,
Louisiana 70809, or calling (225) 925-4810.
Funding Policy. Under Plan B, members are required by state statute to Contribute 5.0 percent of their
annual covered salary and the Town of Franklinton is required to contribute at an actuarially determined
rate. The current rate is 11.75 percent of annual covered payroll. The Town of Franklinton's
management has decided to pay two percent of the employees part, thus increasing the Town of
Franklinton's pension percentage to 13.75 percent. Contributions to the System also include one-fourth
of one percent (except Orleans and East Baton Rouge Parishes) of the taxes shown to be collectible by the
tax rolls of each parish. These tax dollars are divided between Plan A and Plan B based proportionately
on the salaries of the active members of each plan. The contribution requirements of plan members and
the Town of Franklinton are established and may be amended by state statute. As provided by Louisiana
Revised Statute 11:103, the employer contributions are determined by actuarial valuation and are subject
to change each year based on the results of the valuation for the prior fiscal year.
54
Town of Franklinton
The Town of Franklinton contributions to the System under Plan B for the years ending October 31, 2007
and 2006 were $83,150, and $72,844, respectively, equal to the required contributions for each year.
B. Municipal Police Employees Retirement System of Louisiana (System)
Plan Description. All full-time police department employees engaged in law enforcement are required to
participate in the System. Employees who retire at or after age 50 with at least 20 years of creditable
service or at age 55 with at least 12 years of creditable service are entitled to a retirement benefit, payable
monthly for life, equal to 3 1/3 percent of their final-average salary for each year of creditable service.
Final-average salary is the employee's average salary over the 36 consecutive or joined months that
produce the highest average. Employees who terminate with at least the amount of creditable service
stated above, and do not withdraw their employee contributions, may retire at the ages specified
previously and receive the benefit accrued to their date of termination. The System also provides death
and disability benefits. Benefits are established by state statute.
Municipal Police Employees Retirement System of Louisiana, 8401 United Plaza Boulevard, Baton
Rouge, Louisiana 70809-2250, or by calling (225) 929-7411.
Funding Policy. Plan members are required by state statute to Contribute 7.5 percent of their annual
covered salary and the Town of Franklinton is required to contribute at an actuarially determined rate.
The current rate is 15.5 percent of annual covered payroll. The contribution requirements of plan
members and the Town of Franklinton are established and may be amended by state statute. As provided
by Louisiana Revised Statute 11:103, the employer contributions are determined by actuarial valuation
and are subject to change each year based on the results of the valuation for the prior fiscal year. The
Town of Franklinton contributions to the System under Plan B for the years ending October 31,2007 and
2006 were $81,112 and $61,048, respectively, equal to the required contributions for each year.
C. Firefighters Retirement System of Louisiana (System)
Plan Description. Membership in the Louisiana Firefighters Retirement System is mandatory for all fulltime firefighters employed by a municipality, parish, or fire protection district that did not enact an
ordinance before January 1, 1980, exempting itself from participation in the System. Employees are
eligible to retire at age 55 with at least 12 years of creditable service or at or after age 50 with at least 20
years of creditable service. Upon retirement, members are entitled to a retirement benefit, payable
monthly for life, equal to 3 1/3 per cent of their final-average salary for each year of creditable service,
not to exceed 100 per cent of their final-average salary. Final-average salary is the employee's average
salary over 36 consecutive or joined months that produce the highest average. Employees who terminate
with at least 12 years of service and do not withdraw their employee contributions may retire at or after
age 55 (or at or after age 50 with at least 20 years of creditable service at termination) and receive the
benefit accrued to their date of termination. The System also provides death and disability benefits.
Benefits are established by state statute.
Firefighters' Retirement System Post Office Box 94095, Baton Rouge, Louisiana 70804, or by calling
(225) 925-4060.
55
Town of Franklinton
Funding Policy. Plan members are required by state statute to contribute 8.0 percent of their annual
covered salary and the Town is required to contribute at an acruarially determined rate. The current rate
is 13.75 percent of annual covered salary. The contribution requirements of plan members and the Town
are established and may be amended by state statute. As provided by Louisiana Revised Statute 11:103,
the employer contributions are determined by actuarial valuation and are subject to change each year
based on the results of the valuation for the prior year. There was one participant in the retirement plan
for firefighters for the fiscal year ending October 31, 2007. Total employer contributions were $3,561
and $4,820 in the fiscal years ending October 31,2007 and 2006 respectively.
15. Other Post Employment Benefits
The Town of Franklinton provides health care insurance for employees who retire who are either over the
age of 62 or are on disability with twenty years of service. These benefits are provided until the retiree
becomes eligible for Medicare. For the year ended October 31, 2007 the Town of Franklinton had no
retirees eligible for this benefit.
During 2004, the GASB issued GASBS No. 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits Other Than Pensions. For the purposes of this standard the Town of
Franklinton is considered a phase two government, which would warrant implementation of GASB No.
45 for the fiscal year ending October 31, 2009. GASB No. 45, requires a government to record an
actuarially determined liability for the present value of the unfunded portion of other post retirement
employee benefits such as health insurance on the government wide statement of net assets.
For the year ended October 31, 2007, employee health insurance expense totaled $175,097, which
represents approximately three percent of total government wide expenses.
16. Transportation Grant Subcontracted to Washington Parish Council on Aging, Inc.
The Town has entered into subcontracts with the Washington Parish Council on Aging, Inc. assigning all
rights and liabilities under the grant agreements and contracts in order that the Council on Aging can
administer the grants. The Town is the program sponsor and is legally and financially obligated in
connection with fulfilling these grant agreements.
17. Segment Information - Enterprise Fund
The enterprise fund of the Town of Franklinton accounts for the collection of gas, water, and sewer user
fees, and the provision of services to support the gas, water and sewer systems. Segment information of
the enterprise fund is presented in the following statements that comprise the set of financial statements:
Individual enterprise fund statements are included as columns in the combining statement of net assets;
combining statements of revenues, expenses, and changes in net assets - proprietary fund type; and
combining statement of cash flows - proprietary fund type and notes to the basic financial statements.
18. Reserved and Designated Fund Balances/Net Assets
At October 31, 2007, the Sales Tax Construction Fund had a reserved fund balance of $385,919 for future
construction and expenditures per requirements of the 2002 Sales Tax Ordinance, and the Sales Tax Debt
56
Town of Franklinton
Service had reserved fund balance of $31,429 representing reservation of funds for debt service for the
2002 sales tax bond issue.
19. Risk Management
The Town is exposed to various risks of loss related to theft, damage, or destruction of assets, torts,
injuries, natural disasters, and many other unforeseeable events. The Town purchases commercial
insurance policies and bonds for any and all claims related to the aforementioned risks. The Town's
payment of the insurance policy deductible is the only liability associated with these policies and bonds.
There has been no significant decrease in insurance coverage from the prior year.
In order to control insurance costs and concurrently manage the risks of loss, the Town of Franklinton
during April 2004 increased the deductible on general liability insurance from $5,000 to $25,000 for each
loss occurrence. The deductible has subsequently been increased to $100,000, and the board of aldermen
has approved a plan for funding estimated deductibles. As of October 31, 2007, a total of $67,660 has
been transferred to a separate insurance account designated for funding the deductible, and additional
funds will be transferred to this account as funds become available.
20. Contingent Liabilities
Hurricane Katrina Disaster
As with other Louisiana communities, the Town of Franklinton incurred extensive damage to
infrastructure because of Hurricane Katrina. The Town made timely application to the U.S. Federal
Emergency Management Administration (FEMA) and completed all contracted work. As of the date of
this financial report, a determination has not been made on the final amounts for which the Town of
Franklinton will be reimbursed. As of October 31,2006, a total receivable of $4,174,617 was recorded as
Due From FEMA, and a payable of $3,831,592 has been recorded for expenditures related to Hurricane
Katrina. Of the total receivable at October 31, 2006, $2,224,765 represented requests that have been
denied by FEMA because the prices used in the request have been deemed to be unreasonable. On
August 10, 2006, an appeal was filed to FEMA for reimbursement of the amounts denied. That appeal is
still pending as of the date of this report and adequate documentation is not available as of the date of this
report to revise the amount that may be denied by FEMA. If the funds accrued as Due From FEMA, or a
portion of funds Due From FEMA, are not paid to the Town of Franklinton, non-payment of the funds
and the liability related to the expenditures incurred for Hurricane Katrina damages could adversely affect
the ability of the Town of Franklinton to fund the day-to-day operations of the Town.
Other Contingent Liabilities
At October 31, 2007, the Town has several suits pending or threatened litigation. As of the date of this
report, the extent to which some of these suits are covered by insurance, the outcome of these suits, and
any probable loss amount cannot be readily determinable.
Effective November 1, 2004, the Town of Franklinton approved a new health insurance policy and
elected to pay the $1,000 deductible per employee, if necessary. The Town expects a worse-case scenario
in which V4 of the employee's $1,000 health insurance deductibles will need to be paid by the Town in the
fiscal year ending October 31, 2007. On this basis, the Town recorded a contingent liability, payable
within the next fiscal year, of $24,500 and allocated $18,000 of the estimated expenditure to various
57
Town of Franklinton
departments within the General Fund, and the remaining estimated expenditure of $6,500 to water, sewer,
and gas departments within the Enterprise Fund.
21. On-Behalf Payments by the State of Louisiana
For the fiscal year ended October 31, 2007, the State of Louisiana made on behalf payments in the form
of supplemental pay to the Town's policemen. In accordance with GASB 24, the Town recorded $58,019
of on behalf payments as revenue and as an expenditure in the General Fund.
22. Subsequent Events
At October 31, 2007, the Town of Franklinton had construction in progress, or planned construction for
the following projects:
1) Airfield Lighting and NAVAEDS Improvements - At October 31, 2007 the Town of Franklinton had
incurred initial costs of $7,133, with total grant award from the State of Louisiana estimated at
$500,000.
2) Industrial Site Building/Grand Isle Shipyards - At October 31, 2007 the Town of Franklinton had
incurred $30,906 for initial engineering costs, with total costs estimated at $685,000. This is a joint
project between the Town of Franklinton and the Franklinton Area Economic Development
Foundation (FAEDF) that will provide approximately 100 new jobs. Contract documents for the
completed building provide for the lease payment to be applied first to fire and hazard insurance
premium with the balance split between the Town of Franklinton and FAEDF at predetermined
percentages. The Town was also notified on December 17, 2007 that they will receive a State grant
of $300,000 to apply to the building costs.
3) Business Park Property Acquisition and Development - A total of $161,536 was incurred in costs by
the Town at fiscal year end, with total costs estimated at $201,000. This project includes State
funding for construction of an access road to the Industrial Park. The Town has also been notified
that they will receive an additional $150,000 for paving the access road.
4) Franklinton City Hall and MVD building - This project is to be funded from sales tax proceeds of the
1% sales tax approved by the voters on July 21, 2001, and will fund construction costs to house the
State of Louisiana motor vehicle department and to expand the town hall. Plans are to assess a fee of
$3.00 per driver's license issued, with funds collected to be dedicated towards offsetting the costs of
construction. Estimated costs for the building are $222,500, with plans to be developed for expanded
parking for the motor vehicle department and town.
5) Preservation of Historic Steam Engine. Funds of $50,000 will be provided by the State of Louisiana
for preservation of the steam engine located at the Franklinton fairgrounds.
58
Required Supplemental Information (Part II)
59
Schedule 1
TownofFranklinton
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual
General Fund - Summary
Budgeted Amounts
Final
Original
Revenues
Taxes
Intergovernmental
Interest
Donations
Miscellaneous
Total Revenues
Expenditures
General Government
Public Safety:
Police
Fire
Public Works
Sanitation
Health and Welfare
Transportation
Capital Outlays
Total Expenditures
Excess Revenues (Expenditures)
Actual Amounts
GAAF Basis
Variance
Favorable
1,400,000 S
337,000
381,549
155,000
55,000
10,000
28,000
39,550
2,406,099
1,427,249 $
358,000
431,374
161,000
73,000
12,500
28,000
98,335
2,589,458
1,364,850 S
358,745
451,774
164,391
75,885
32,137
78,000
35,975
2,561,757
(62,399)
745
20,400
3,391
2,885
19,637
50,000
(62,360)
(27,701)
597,150
619,630
617,359
2,271
1,042,449
95,000
530,175
122,000
222,460
3,700
180,000
2,792,934
1,083,726
180,574
541,075
140,000
272,070
3,700
180,000
3,020,775
1,110,335
90,765
551,536
143,494
324,761
3,749
1,621
2,843,620
(26,609)
89,809
(10,461)
(3,494)
(52,691)
(49)
178,379
177,155
(386,835)
J431,317)
(281,863)
149,454
Continued
The accompanying notes are an integral part of this statement.
60
Schedule 1
TowDOfFranklinton
Schedule of Revenues, Expenditures, and Changes in Fond Balances - Budget to Actual
General Fund - Summary
Budgeted Amounts
Original
Final
309,369 $
160,000 $
90,000
154,350
Actual Amounts
GAAP Basis
Variance
Favorable
(Unfavorable)
160,000 $
(156,431)
154,350
(246,431)
(5,481)
(5,481)
309,369
404350
152,438
(251,912)
(77,466)
(26,967)
(129,425)
(102,458)
985,463
985,463
985,463
907,997 $
958,4% $
(Concluded)
61
856,038 $ • _
__ ^^^^^^^_
(102,458)
Schedule!
Town of Franklinton
General Fund-Detail
Budgeted Amounts
Final
Original
Taxes
Ad Valorem
Sales Taxes
Franchise Taxes
Total Taxes
Variance
Favorable
118,000 $
1,062,000
220,000
1,400,000
118,000 $
1,069,249
240,000
1,427,249
116,476 $
1,051,997
196,377
1,364,850
(U524)
(17,252)
(43,623)
(62,399)
Intergovernmental
Federal Grants
State Grants
Supplemental Pay - Police
Police Jury Rebate
Council on Aging Grant
Other
Total Intergovernmental
145,000
8,000
•
56,000
170,000
2,549
381,549
145,000
8,000
56,000
218,000
4,374
431,374
5,000
30,913
58,019
56,328
271,938
29,576
451,774
(140,000)
22,913
58,019
328
53,938
25,202
20,400
Other Revenues
Interest
Donations
Miscellaneous
Total Other Revenues
337,000
155,000
55,000
10,000
28,000
39,550
624,550
358,000
161,000
73,000
12,500
28,000
98,335
730,835
358,745
164,391
75,885
32,137
78,000
35,975
745,133
745
3,391
2,885
19,637
50,000
(62,360)
14,298
2,406,099
2,589,458
2,561,757
(27,701)
Total Revenues
$
Actual Amounts
GAAP Basis
Continued
62
Schedule 2
Town of Franklinton
General Fund - Detail
Budgeted Amounts
Final
Original
General Government
Salaries
Benefits
Payroll Taxes
General and Administrative
Insurance
Vehicle Expenses
Other operating
Professional Fees
Supplies
Utilities
Total Genera! Government
Actual Amounts
GAAP Basis
Variance
Favorable
252,900
62,000
19,500
8,600
113,000
7,500
54,150
45,000
19,500
15,000
597,150
260,900
67,000
19,500
6,000
114,400
10,000
55,930
54,200
17,700
14,000
619,630
263,306
70,012
19,362
6,830
104,113
5,361
56,152
63,261
14,969
13,993
617359
(2,406)
(3,012)
138
(830)
10,287
4,639
(222)
(9,061)
2,731
7
2,271
600,573
85,500
55,376
39,000
189,000
30,000
1,000
15,000
12,000
15,000
1,042,449
627,000
80,000
55,376
39,550
199,000
38,000
(63,584)
(1,112)
(343)
42,925
(2,281)
(2,604)
15,000
13,400
16,000
1,083,726
690,584
81,112
55,719
(3,375)
201,281
40,604
400
15,518
13,425
15.067
1,110,335
27,306
8,003
2,203
1,991
24,687
5354
4,409
5,652
3,670
7.490
90,765
(306)
95,000
27,000
7,992
2,200
92,000
24,665
5,350
3,397
6,800
3,670
7,500
180,574
1,137,449
1,264,300
1.201.100
Public Safety:
Police
Salaries
Benefits
Payroll Taxes
Insurance
Vehicle Expenses
Other operating
Supplies
Telephone
Utilities
Total Police
400
(518)
(25)
933
(26,609)
Fire
Salaries
Benefits
Payroll Taxes
Genera) and Administrative
Insurance
Vehicle Expenses
Other operating
Supplies
Telephone
Utilities
Total Fire
Total Public Safety
95,000
-
Continued
See accompanying notes and accountant's report
63
(U)
(3)
90,009
(22)
(4)
0,012)
1,148
89,809
63.200
Schedule!
TownofFranklinton
General Fund-Detail
Budgeted Amounts
Final
Original
Public Works
Salaries
Benefits
Payroll Taxes
Insurance
Vehicle Expenses
Supplies
Total Public Works
Actual Amounts
GAAP Basis
Variance
Favorable
233,860
76.900
17,200
60,000
75,715
16,500
50,000
530,175
248,860
85,700
17,800
58,000
75,815
25,200
29,700
541,075
253,232
86,474
18,002
56,445
76,034
27,291
34,058
551,536
(4,372)
(774)
(202)
1,555
(219)
(2,091)
(4,358)
(10,461)
Other operating
Total Sanitation
122,000
122,000
140,000
140,000
143,494
143.494
(3,494)
(3,494)
Health and Welfare
Salaries
Benefits
Payroll Taxes
Insurance
Other operating
Total Health and Welfare
16,000
6,180
1,200
1,130
350
197,600
222,460
18,000
7,140
1,400
1,130
400
244,000
272,070
18,559
(559)
(55)
9
1,127
5
(53,218)
(52,691)
Transportation
Utilities
Total Transportation
2,200
1,500
3,700
2,600
1,100
3,700
2,674
180,000
180,000
1,621
178,379
2,792,934
3,020,775
2,843,620
177.155
(281,863)
149,454
Sanitation
Capital Outlays
Total Expenditures
(386,835)
Continued
64
(431,317)
7,195
1,391
3
395
297,218
324,761
1,075
3,749
(74)
25_
(491
Schedule!
TownofFranklinton
Schedule of Revenues, Expenditures, and Changes in Fond Balances - Budget to Actual
General Fond - Detail
Budgeted Amounts
Original
Final
$
309,369 $
160,000 $
90,000
154,350
Actual Amounts
GAAP Basis
160,000 $
(156,431)
154,350
Variance
Favorable
(246,431)
(5,481)
(5,481)
309,369
404,350
152,438
(251,912)
(77,466)
(26,967)
(129,425)
(102,458)
•
985,463
985,463
985,463
$
958,496 $ •
907,997 $ ^^^^=^^=
=—^= 856,038 $
Concluded
The accompanying notes are an integral part of this statement
65
(102,458)
Schedule 3
TownofFranklinton
Special Revenue Fund * Streets and Drainage Sales Tax
Budgeted Amounts
Original
Final
Revenues
Sales Taxes
Interest
Total Revenues
Expenditures
Public Works
Amortization
Capital Outlays
Total Expenditures
518,000 $
31,000
549,000
Actual Amounts
GAAP Basis
518,000 $
31,000
549,000
29,400
514,000
543,400
382
413
795
514,000
543,400
35,604
896
119,835
156,335
(6,204)
(896)
394,165
387,065
5,600
5,600
393,460
387,860
Operating Transfers En
25,000
25,000
25,000
25,000
25,000
(402,235)
(377,235)
(402,235)
(402,235)
30,600
30,600
16,225
711,039
711,039
711,039
(14,375)
.
741,639 $
741,639 $
-727,264 $ «
(14,375)
29,400
518,382 $
31,413
549,795
Variance
Favorable
66
i
Other Supplemental Information
67
Non-Major Governmental Funds
Special Revenue Funds;
Police Ad Valorem - To account for the receipt and disbursement of a five (5) mill ad
valorem tax dedicated for the purpose of maintaining and improving the police department.
Streets and Drainage Ad valorem - To account for the receipt and disbursement of a seven
(7) mill ad valorem tax dedicated for the purpose of maintaining and improving streets and
drainage.
Equipment Sales Tax - To account for the receipt and disbursement of 20% of a 1% sales
tax dedicated for the purposes of acquiring, constructing, improving, maintaining and
operating public buildings and facilities.
Buildings and Facilities Sales Tax - To account for the receipt and disbursement of 20
percent of a one percent sales tax dedicated for the purposes of acquiring, constructing,
improving, maintaining and operating public buildings and facilities.
Industrial Development Sales Tax - To account for the receipt and disbursement of 10% of
a 1% sales tax dedicated for the purposes of promoting and encouraging the location and
development of commerce and industry, including land and building therefore, with the
proceeds of the tax to be subject to being funded into bonds.
Rural Development Grant - To account for the receipt and disbursement of a grant from the
State of Louisiana for the purpose of providing financial assistance to purchase new
equipment at an industrial development location.
Capital Project Fund:
Sales Tax Construction - To account for use of the proceeds of the 2002 Certificates of
Indebtedness for the construction of facilities.
Grant Construction - To account for use of grant funds and contributions for the
constructions of improvements and facilities. This fund was created to account for projects
that will not be financed primarily by sales tax proceeds.
Debt Service Fund:
Sales Tax Debt Service - To account for resources set aside for payment of principal and
interest on the 2002 Certificates of Indebtedness sales tax issue.
68
TownofFranklinton
Combining Balance Sheet Nonmajor Governmental Funds
Police Ad
Valorem
Assets
Cash
Investments
Receivables, Net:
Intergovernmental
Restricted Cash
Total Assets
Liabilities and Fund Balances
Liabilities:
Accounts Payable
Retainage Payable
Due to Other Funds
Total Liabilities
$
Streets and
Drainage Ad
Valorem
2,064 $
283,211 $
81,070
33,556
$
35,620 $
$
1,395 $
Special Revenue
Building and
Equipment Facilities Saks
Sales Tax
Tax
23,065 $
16,270
4,348
1,644
16,270
4,348
1,644
248,682
612,963 $
S=^=^SSS
-
150,603 $
$
=
45,327
•^ $ =
172,865 $
^=^SSS^B
-
$
Industrial
Development
Sales Tax
154,260
8,135
2,174
822
165,391
^S
^^^^H^=
2,518 $
34,856
7,700
9,095
100,000
100,000
10,685
10,685
2,518
35,592
70,448
Fund Balances:
Unreserved Fund Balances
Reserved Fund Balance
Total Fund Balances
26,525
512,963
34,642
170,347
94,943
26,525
512,963
34,642
170,347
94,943
Total Liabilities and Fund Balances $
35,620 $
612,963 $
45,327 $
172,865 $
165,391
(Continued)
See Independent Auditor's Report
69
Schedule 4
Debt Service
Capital Project
Rural
Development
Grant
$
34,428
Sale Tax
Construction
$
-
Debt
Service
Fund
Grant
Construction
$
161,536
$
-
Total Nonmajor
Governmental
Funds
$
7,133
40,820
$
34,428 $
$
$
271,830
433,366
(9,391)
31,429 $
209,344
333,928
4,110
262,439
1,538,522
$
7,133 $
$
7,133 $
-
7,133
-
45,902
13,891
187,533
247,326
31,429
31,429
873,848
417,348
1,291,196
31,429 $
1,538,522
13,891
33,556
47,447
$
34,428
$
647,631
81,070
34,428
385,919
385,919
34,428 $
433,366 $
7,133 $
(Concluded)
70
TownofFrankJidton
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances •
Nonmajor Governmental Funds
Special Revenue
Police Ad
Valorem
Revenues
Ad Valorem Taxes
Sales Tax
Grants
Donations
Interest
Unrealized Gain (Loss) on Investments
Total Revenues
Streets and
Drainage Ad
Valorem
Equipment
Sales Tax
Building and
Facilities
Sales Tax
Industrial
Development
Sales Tax
81,926 $
-
114,507 $
-
S
207,353
- $
207,353
.
103,676
.
1,948
.
83,874
18,158
(736)
131,929
.
597
207,950
6,955
214,308
149,039
9,790
262,505
23,286
34,182
94,838
Expenditures
General Government
Public Safety
Police
Fire
Public Works
Health and Welfare
Amortization
Capital Outlays
Total Expenditures
97,629
33,756
131,385
60,633
•
21,000
81,633
7,220
19,393
16,910
3,154
358
70,310
140,631
2,255
53,367
•
358
90,162
.
•
179
(6,379)
65,403
154,041
Excess of Revenues Over Expenditures
(47,511)
50,296
67,319
124,146
108,464
-
-
Bond Principal Payments
Interest Expense
Capital Lease Principal Payments
_
.
12,910
12,910
•
-
•
(122,451)
(122,451)
22,900
(282,314)
(259,414)
(150,950)
245,893
(34,601)
61,126
50,296
462,667
14,829
19,813
1,695
168,652
26,525 $
512,963 $
34,642 S
170347 $
(Continued)
71
-
58,465
(12,894)
12,894
(110,955)
(52,490)
94,943
Schedule*
DeMServfct
Capital Project
Rural
Development
Grant
$
-
Sale Tax
Construction
$
-
$
161,536
1,601
1,601
13,45!
174,987
.
• $
10,507
10,507
196,433
518,382
168,669
149,039
63,007
(736)
1,094,794
.
152306
175,316
175,316
•
•
•
38,039
38,039
.
•
•
•
-
107,104
72,760
77,543
3,154
895
(6,379)
403,824
811,207
(329)
(30,906)
10,507
283,587
147,645
(12,894)
134,751
.
•
•
•
30,906
30,906
(758,000)
(161,548)
489,805
•
(429,743)
(758,000)
(161,548)
58,465
(12,894)
717,060
(528,614)
(685,531)
m
(419,236)
450,665
(401,944)
1,693,140
.
•
$
- $
•
7,133
•
7,133
.
.
•
•
-
1,601
Total Nonnajor
Governmental
Funds
Debt
Service
Grant
Construction
1,601
32,827
134,422
251,497
34,42* $
385,919 $
^^K=SS9^^=^=
$
—
31,429 S
=55=3==: —
(Concluded}
72
1,291,196
Scheduled
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget (GAAP Basis) to Actual
Special Revenue Fund - Police Ad Valorem
Budgeted Amounts
Original
Final
Actual Amounts
GAAP Basis
Variance
Favorable
(Unfavorable)
Revenues
Ad Valorem Taxes
Interest
Total Revenues
81,000 $
2,000
83,000
81,000 $
2,000
83,000
81,926 S
1,948
83,874
Expenditures
Public Safety:
Police
Other operating
Supplies
Capital Outlays
Total Expenditures
38,285
21,150
13,100
56,000
128,535
38,285
21,150
13,100
56,000
128,535
63,538
22,779
11,312
33,756
131,385
(25,253)
(1,629)
1,788
22,244
(2,850)
(45,535)
(45,535)
(47,511)
(1,976)
12,900
12,900
12,910
10
12,900
12,900
12,910
10
(32,635)
(32,635)
(34,601)
61,126
61,126
61,126
28,491 $
28,491 $
26,525 $
73
926
(52)
874
(1,966)
_
(1.966)
Schedule?
Special Revenue Fund • Streets and Drainage Ad Valorem
Variance
Budgeted Amounts
Budgeted
Original
Final
Actual Amounts
Amounts
GAAP Basis
Favorable
Jj
(Unfavorable)
Revenues
Ad Valorem Taxes
Grants
Interest
Miscellaneous
Total Revenues
J
114,000 $
114,000 $
114,507 J
507
18,158
(736)
131,929
3,658
(736)
3,429
29,800
60,633
21,000
81,633
(30,833)
(21,000)
(51,833)
98,700
98,700
50,296
(48,404)
98,700
98,700
50,296
462,667
462,667
462,667
(48,404)
_
561,367 $
561,367 $
512,963 $
(48,404)
14,500
14,500
128,500
128,500
Public Works
Capital Outlays
Total Expenditures
29,800
29,800
29,800
Expenditures
$
74
Schedules
TownofFrankJinton
Schedule of Revenues, Expenditures, and Changes In Fund Balances • Budget (GAAP Basis) to Actual
Special Revenue Fund - Equipment Sales Tax Fund
Budgeted Amounts
Original
Final
Revenues
Sales Taxes
Interest
Miscellaneous
Total Revenues
210,000 $
900
(850)
210,050
Actual Amounts
GAAP Basis
210,000 $
900
(850)
210,050
207,353 $
597
207,950
Variance
Favorable
(Unfavorable)
(2,647)
(303)
850
(WOO)
Expenditures
General Government
Public Safety;
Police
Fire
Public Works
Health and Welfare
Amortization
Capital Outlays
Total Expenditures
20,400
20,400
23,286
(2,886)
6,700
15,800
16,900
3,150
47,500
110,450
6,700
15,800
16,900
3,150
47,500
110,450
7^20
19,393
16,910
3,154
358
70,310
140,631
(520)
(3,593)
(10)
(4)
(358)
(22,810)
(30,181)
99,600
99,600
67,319
(31281)
Bond Principal
Total Otter Financing Sources (Uses)
(97,500)
(97,500)
(97,500)
(97,500)
12,894
(110,955)
58,465
(12,894)
(52,490)
97,500
12,894
(110,955)
58,465
(12,894)
45,010
2,100
2,100
14,829
19,813
19,813
19,813
21,913 $
21,913 $
^•^M^^^M
75
34,642 $
=
12,729
_
12,729
Schedule 9
TownofFranklinton
Special Revenue Fund - Buildings and Facilities Sales Tai Fund
Budgeted Amounts
Original
Final
Revenues
Sales Taxes
Interest
Total Revenues
210,000 $
7,000
217,000
210,000 $
7,000
217,000
Actual Amounts
GAAP Basis
207,353 $
6,955
214,308
Variance
Favorable
(Unfavorable)
(2,647)
(45)
(2,692)
Expenditures
General Government
Public Safety:
Police
Fire
Amortization
Total Expenditures
33,800
33,800
34,182
(382)
2,200
53,500
89,500
2,200
53,500
89,500
2,255
53,367
358
90,162
(55)
133
(358)
(662)
127,500
127,500
124,146
(3,354)
(122,000)
(122,000)
Bond Principal
.
(122,000)
_
-
122,000
(122,000)
(122,451)
(122,451)
(122,451)
(451)
5,500
5,500
1,695
(3,805)
168,652
168,652
168,652
174,152 $
174,152 $
170,347 $
76
m
(3,805)
Schedule 10
TownofFranklintoD
Special Revenue Fund - Industrial Development Sales Tax Fund
Actual Amounts
GAAP Basis
Budgeted Amounts
Original
Final
Variance
Favorable
(Unfavorable)
Revenues
Sales Taxes
Donations
Interest
Total Revenues
100,000 $
9,800
109,800
100,000 $
•
9,800
109,800
103,676 $
149,039
9,790
262,505
3,676
149,039
(10)
152,705
Expenditures
General Government
Amortization
Capital Outlays
Total Expenditures
3,800
130,500
107,000
241,300
3,800
•
130,500
107,000
241,300
94,838
179
(6379)
65,403
154,041
(91,038)
(179)
136,879
41,597
87,259
(131,500)
(131,500)
108,464
239,964
22,900
(282,314)
(259,414)
22,900
(282,314)
(259,414)
-
•
-
(131,500)
(131,500)
(150,950)
(19,450)
245,893
245,893
245,893
-
114,393 $
114,393 $
$
77
94,943 $
(19,450;
Schedule 11
Town of Fraoklinton
Special Revenue Fund - Rural Development Grant Fund
Budgeted Amounts
Final
Original
Revenues
Interest
Miscellaneous
Total Revenues
$
$
Actual Amounts
GAAP Basis
Variance
Favorable
(Unfavorable)
1,601 $
1,601
1.601
1,601
1,601
1,601
Expenditures
Capital Outlays
Total Expenditures
$
32,827
32,827
32,827
32,827 $
32,827 $
34,428 $
78
1,601
Business-Type Funds
Proprietary Funds:
Gas Utility System -
To account for the provision of gas services to the residents
of the Town. All activities necessary to provide such
services are accounted for in this fund, including, but not
limited to, administration, operations, maintenance, financing
and related debt service, and billing and collection.
Water Utility System*
To account for the provision of water services to the residents
of the Town. All activities necessary to provide such
services are accounted for in this fund, including, but not
limited to, administration, operations, maintenance, financing
and related debt service, and billing and collection.
Sewer Utility System -
To account for the provision of sewer services to the
residents of the Town. All activities necessary to provide
such services are accounted for in this fund, including, but
not limited to, administration, operations, maintenance,
financing and related debt service, and billing and collection.
79
Schedule 12
Comparative Schedule of Net Assets - Proprietary Fund Type
As of October 31,2007 and 2006
Enterprise Funds
2007
Assets
Current Assets:
Investments
Receivables, Net
Accounts
Other Receivables
Inventory - Gas and Supplies
Bond Issue Costs, Net
Prepaid Insurance
41,503 S
1,820,562
Restricted Assets:
Restricted Investments - Customer Deposits
Land
Total Assets
Liabilities
Current Liabilities (Payable From Current Assets);
Accounts Payable
Due To Other Funds
Current Liabilities (Payable From Restricted Assets):
Customer Deposits
Bonds Payable
Total Liabilities
Net Assets
Restricted for:
Unrestricted
Total Net Assets
80
225,599
1,721,660
256,188
288,264
1,587
6,050
70,072
6,754
36,486
2,271,278
6,050
106,016
7,030
27,176
2,349,719
254,430
75,000
329,430
377,272
75,000
452,272
3,300
4,018,896
4,022,196
3,300
3,060,213
6,622,904
6,739,151
75,566
9,552
16,669
25,948
127,735
68,327
8,990
53,375
8,646
139,338
135,683
29,238
7,125
172,046
164,688
40,536
7.125
212,349
2,473,327
38,527
2,511,854
2,489,857
34,423
2,524,280
2,811,635
2,875,967
1,519,631
707,739
186,622
2,105,016
3,811,269 5
2006
3,937,160
105,840
3,049,606
3,863,185
Schedule 13
Town ofFranklinton
Comparative Schedule of Revenues, Expenses ind Changes in Net Assets
Proprietary Fund Type
Enterprise Funds
2006
2007
Operating Revenues
Gas Sales
1,228,671 $
(936,368)
292,303
Water Sales
Penalties
Other
444,685
433,140
11,391
12,562
1,194,081
442,332
450,499
28,407
1,193,038
Depreciation
Employee Benefits
Insurance
Meter Reading
Professional Fees
Salaries and Wages
Supplies
Utilities
Other
401,106
110,538
101,183
25,422
67,131
65,815
312,966
223,519
69,871
62,665
1,440,216
333,956
80,576
108,077
38,314
87,940
61,139
234,114
116,073
108,894
61,872
1,230,955
(246,135)
(37,917)
Realized Gain (Loss) on Investmetns
Interest Income
Interest Expense
19,411
112,815
(123,227)
8,999
(210)
(2)
109,306
(81,829)
27,265
Income (Loss) Before Contributions and Transfers
(237,136)
(10,652)
Capital Contributions
345,220
(160,000)
100,000
117,709
(30,000)
(51,916)
3,863,185
177,057
3,686,128
3,811,269 $
3,863,185
1,347,855
(1,076,055)
271,800
Operating Expenses
Nonoperating Revenues (Expenses)
Contributions and Transfers
81
Schedule 14
TownofFrankJinton
Enterprise Funds
2007
2006
Cash Flows From Operating Activities
Received From Customers
Received (Paid) for Meter Deposit Fees
Other Receipts
Received for Interfund Services
Payments for Operations
Payments to Employees
$
2,085,811 $
(29,005)
10,975
17,302
(1,516,350)
(415,291)
153,442
2,328,394
4,408
28,407
(1,708,765)
(317,555)
334,889
Cash Flows From Noncapital Financing Activities
Transfers From (To) Other Funds
Net Cash Provided (Used) by Noncapital Financing Activities
185,220
185,220
87,709
87,709
Cash Flows From Capital and Related Financing Activities
Capital Contributions Received
(Payments for) Capital Acquisitions
Principal Proceeds from (Repayments for) Long Term Debt
Interest Payments for Long Term Debt
Net Cash (Used) by Capital and Related Financing Activities
(527,869)
(27,828)
(123,227)
(678,924)
100,000
(993,420)
873,514
(74,704)
(94,610)
Cash Flows From Investing Activities
Receipt of Interest
Proceeds from sale (Payments) for Investments
Net Cash Provided (Used) by Investing Activities
112,815
(79,491)
33,324
109^05
(189,241)
(79,936)
Net Cash Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Year
Cash and Cash Equivalents, End of Year
(306,938)
602,871
295,933 $
248,052
354,819
602,871
41,503 $
254,430
295,933 $
225,599
377,272
602,871
Reconciliation of Cash and Cash Equivalents to the Statement of Net
Assets:
Cash and Cash Equivalents, Unrestricted
Cash and Cash Equivalents, Restricted
Total Cash and Cash Equivalents
(Continued)
82
$
$
$
Schedule 14
Enterprise Funds
2007
2006
Reconciliation of Operating Income (Loss) to Net Cash Provided (Used)
by Operating Activities
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided
by Operating Activities:
Depreciation and amortization
(Increase) Decrease in Accounts Receivable
(Increase) Decrease in Other Receivable
(Increase) Decrease in Inventory
(Increase) Decrease in Prepaid Insurance
(Increase) Decrease in Due (to) and from Other Funds
Increase (Decrease) in Accounts Payable
Increase (Decrease) in Compensated Absences
Increase (Decrease) in Accrued Expenses
Increase (Decrease) in Customer Deposits
(Concluded)
83
$
(246,135) $
(37,917)
$
401,382
(32,076)
(1,587)
35,944
(9,310)
17,302
7,239
4,666
5,022
(29,005)
153,442 $
334,232
87,708
(52,641)
8,166
(39,974)
(2,872)
33,779
4,408
334,889
Schedule 15
Town of Franklinton
Combining Schedule of Net Assets - Proprietary Fund Type - Utility Funds
For the yea r ended October 31,2007
Gas
Water
Sewer
(15,938) $
405,040
62,626
64
•
52,165 $
491,478
70,827
77
1,050
24,677
6,754
12,162
659,190
Total
Assets
Current Assets:
Investments
Other Receivables
Inventory
Prepaid Insurance
5,276 $
924,044
154,811
1,446
5,000
36,269
12,162
1,139,008
9,126
•
12,162
473,080
Restricted Assets:
Restricted Investments - Customer Deposits
12,274
50,000
62,274
143,078
25,000
168,078
Land
88,930
88,930
41,503
1,820,562
288,264
1,587
6,050
70,072
6,754
36,486
2471,278
99,078
254,430
75,000
329,430
3,300
744,779
748,079
3,185,187
3,185,187
3,300
4,018,896
4,022,1%
1,290^12
1,389,237
3,943,455
6,622,904
Current Liabilities (Payable From Current Assets):
Accounts Payable
Due To Other Funds
57,604
4,890
11,108
7,932
81,534
17,962
3,579
4,093
714
26,348
1,083
1,468
17,302
19,853
75,566
9,552
16,669
25,948
127,735
Current Liabilities (Payable From Restricted Assets);
Customer Deposits
62,821
62,821
72,862
18,069
90,931
11,169
7,125
18^94
135,683
29,238
7,125
172,046
Bonds Payable
19,333
19,333
1,075,864
18,704
1,094,568
1,397,463
490
1,397,953
2,473,327
38,527
2,511,854
163,688
1,211,847
1,436,100
2,811,635
Total Assets
99,078
-
Liabilities
Total Liabilities
Net Assets
Restricted for:
Unrestricted
Total Net Assets
1,519,631
$
84
186,622
2,105,016
3,811,269
Schedule 16
Combining Schedule of Revenues, Expenses and Changes in Net Assets
Proprietary Fund Type - By Department
Gas
Operating Revenues
Gas Sales
S 1,228,671 $
(936,368)
292,303
Water Sales
Penalties
Other
Operating Eipenses
Depreciation
Employee Benefits
Insurance
Meter Reading
Professional Fees
Salaries and Wages
Supplies
Utilities
Other
Water
-
-
-
444,685
3,797
3,797
7,283
455,765
648
296,748
-
Total
Sewer
$
-
$
-
1,228,671
(936,368)
292,303
444,685
433.140
11,391
12,562
1,194,081
433,140
3,797
4,631
441,568
300,644
37,089
28,335
32,586
355,027
74,120
33,913
27,200
12,711
59,911
9,000
101,876
95,877
35,597
20,082
470,287
(58,279)
(14,522)
1173,334)
(246,135)
10,616
49,402
60,018
4,127
31,836
(56,042)
(20,079)
4,668
31,577
(67,185)
(30,940)
19,411
112,815
(123,227)
8,999
1,739
(34,601)
(204,274)
(237,136)
333,726
(55,000)
3,820
(35,000)
7,674
(70,000)
345,220
(160,000)
280,465 $
(65,781) $ (266,600)
(51,916)
3,863,185
3,811,269
26,342
39,536
45,648
12,711
13,000
110,205
74,999
-
401,106
110,538
101,183
25,422
67,131
65,815
312,966
223,519
69,871
62,665
1,440,216
7,220
43,815
100,885
52,643
34,274
9,997
614,902
Interest Income
Interest Expense
-
Income (Loss) Before Transfers
Transfers
$
$
85
Schedule 17
TowDofFranklinton
Schedule of Revenues, Eipenses and Changes IB Net Assets
Budget (GAAP Basis) and Actual, Proprietary Fund Type, Gas Utility System
Budget
Variance
Favorable
(Unfavorable)
Actual
Operating Revenues
Gas Sales
1,440,000 $
(970,844)
469,156
1,228,671 $
(936,368)
292,303
(211,329)
34,476
(176,853)
Other
550
469,706
3,797
648
296,748
3,797
98
(172,958)
Operating Eipenses
Bad Debts
Depreciation
Employee Benefits
Insurance
Meter Reading
Professional Fees
Salaries and Wages
Supplies
Other
Total Operating Eipenses
28,000
41,475
52,600
17,000
10,000
110,210
47,000
31,900
338,185
4,655
26,342
39,536
45,648
12,711
13,000
110,205
74,999
27,931
355,027
(4,655)
1,658
1,939
6,952
4,289
(3,000)
5
(27,999)
3,969
(16,842)
131,521
(58,279)
(189,800)
6,000
10,616
49,402
10,616
43,402
6,000
60,018
54,018
137,521
1,739
(135,782)
Transfers
(70,000)
333,726
(55,000)
333,726
15,000
67,521 $
280,465 $
212,944
Nonoperating Revenues (Eipenses)
Interest Income
Interest Expense
Total Nonoperating Revenues (Eipenses)
86
Schedule 18
TownofFranklinton
Budget (GAAP Basis) and Actual, Proprietary Fund Type, Water Utility System
Budget
Actual
Variance
Favorable
(Unfavorable)
Operating Revenues
Water Sales
Other
460,000 $
11,400
471,400
444,685 $
3,797
7,283
455,765
05,315)
3,797
(4,117)
(15,635)
Operating Expenses
Depreciation
Employee Benefits
Insurance
Meter Reading
Professional Fees
Salaries and Wages
Supplies
Utilities
Other
75,000
38,815
31,300
14,000
41,000
6,000
108,150
48,000
36,000
63,800
462,065
74,120
33,913
2730
12,711
59,911
9,000
101,876
95,877
35,597
20,082
470,287
880
4,902
4,100
1,289
(18,911)
(3,000)
6,274
(47,877)
403
43,718
(8,222)
9,335
(14,522)
(23,857)
Interest Income
Interest Expense
12,000
(56,175)
(44,175)
4,127
31,836
(56,042)
(20,079)
4,127
19,836
133
24,096
(34,840)
(34,601)
239
Transfers
(50,000)
3,820
(35,000)
3,820
15,000
(84,840) $
(65,781) $
19,059
87
Scheduled
TownofFranklinton
Schedule of Revenues, Expenses ind Changes in Net Assets
Budget (GAAP Basis) and Actual, Proprietary Fund Type, Sewer Utility System
For the year ended October 31,200?
Budget
Operating Revenues
Sewer Charges
Other
Actual
Variance
Favorable
(Unfavorable)
442,700 $
4,000
446,700
433,140 $
3,797
4,631
441,568
(9,560)
3,797
631
(5,132)
Depreciation
Employee Benefits
Insurance
Professional Fees
Salaries and Wages
Supplies
Utilities
Other
250,000
32,900
37,200
25,000
48,500
92,700
35,000
60,000
64,650
645,950
300,644
37,089
28,335
7,220
43,815
100,885
52,643
34,274
9,997
614,902
(50,644)
(4,189)
8,865
17,780
4,685
(8,185)
(17,643)
25,726
54,653
31,048
(199,250)
(173,334)
25,916
20,300
(24,000)
(3,700)
4,668
31,577
(67,185)
(30,940)
4,668
11,277
(43,185)
(27,240)
(202,950)
(204,274)
(1324)
(70,000)
7,674
(70,000)
7,674
-
(272,950) $
(266,6001 $
6,350
Operating Expenses
Interest Income
Interest Expense
Transfers
Schedule 20
TowiLofFranklinton
Schedule of Gas, Water and Sewer Rates
Gas
$
$
$
$
Residential Rates
6.000
1.164
1.152
1.104
•
•
First 500 Cubic Feet
Per 1 00 Cubic Feet for Next 3,500 Cubic Feet
Per 1 00 Cubic Feet for Next 1 6,000 Cubic Feet
Per 100 Cubic Feet for all over 20,000 Cubic Feet
Industrial Rates
Based Price Per MCF Plus 67%
$
$
$
$
6.500
1.200
1.176
1.152
-
Commercial Rates
First 500 Cubic Feet
Per 100 Cubic Feet for Next 9,500 Cubic Feet
Per 1 00 Cubic Feet for Next 30,000 Cubic Feet
Per 100 Cubic Feet for all over 40,000 Cubic Feet
Water
$
$
Residential Rates
13.00 - First 3,000 Gallons
1.00 - Per l,OOOGa1lonsofWaterover3,OOOGallons
i
s
Residential Rates
14.00 • First 5,000 Gallons
2.00 • Per 1,000 Gallons of Water over 5,000 Gallons
Gas
Water
Sewer
Total
Commercial Rates
$ 20.00 - First 3,000 Gallons
$ 1.00 - Per 1 ,000 Gallons of Water over 3,000 Gallons
Sewer
Commercial Rates
T 18, IX) - First 5,000 Gallons
$ 1.00 - Per 1,000 Gallons of Water over 5,000 Gallons
Schedule of Number of Customers
Residential
Commercial
Industrial
823
201
1,241
358
1,241
353
3,305
912"
Commerical customers have a meter size larger than the residential size (3/4") = 24.
89
Total
1,027
1,599
1,594
4,220
Schedule 21
Town of Franklinton
Schedule of Insurance
Insurance Company /
Policy Number
Praetorian Insurance
PSILA0001598
PSILA0001550
PSILAOOOI597
Western Surety Company
68486705
68486705
OU66022A
Coverage
Commercial Property
General Liability (occurr/aggreg)
Commercial Automobile
Inland Marine (Scheduled)
Fidelity Bond: Mayor
Fidelity Bond: Clerk
Fidelity Bond: Limit each for Clerk,
and two Assistant Clerks
Amount
1,820,879
1 mil/2mil
Period
4/4/2007 to
4/4/2008
1,000,000
300,000
200,000
200,000
15,000
4/9/2007 to
4/9/2007 to
9/14/2007 to
4/9/2008
4/9/2008
9/14/2008
Louisiana Workers Comp
Corporation
LWCC 72437
Workers Compensation at Statutory
Limitations:
Employers Liability (each accident)
Employees Liability (each accident)
Disease, Policy Limit
Old Republic
PR-149108
Airport Liability
1,000,000
2/19/2007 to
2/19/2008
Professional Government
0202-0509
0202-0510
Law Enforcement Liability
Public Officials Errors & Omissions
1,000,000
1,000,000
4/4/2007 to
4/4/2008
90
11/15/2007 to 11/15/2008
100,000
100,000
Schedule 22
Town of Franklinton
Schedule of Compensation Paid to Board Members
Name and Title / Contact Number
Compensation
Received
Address
Earle Brown, Mayor
(985) 839-2175
1109 Lynnwood
Franklinton, LA 70438
$
29,500
John L. Daniel, Alderman
(985) 839-2382
30910th Avenue
6,000
Florence R. Manning, Aldenvoman
(985) 839-4291
P.O. Box 684
6,000
T.J. Butler, Aldermen
(985) 839-3436
727 18th Avenue
6,000
Wayne Flemming, Aldermen
(985) 839-0173
150712th Avenue
6,000
Wi lliam Durden, Aldermen
(985) 839-4413
820 11 th Avenue
6,000
$ 5 9 3 0 0
^^s^=^=
Terms end December 31, 2008 for Board Members
91
OMIGHAND
CERTIFIED PUBLIC ACCOUNTANTS
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor, Earle R. Brown
and Board of Aldermen
Town of Franldinton, Louisiana
We have audited the financial statements of TOWN OF FRANKLINTON, LOUISIANA (the
Town), as of and for the year ended October 31, 2007, and have issued our report thereon dated
April 7, 2008. We conducted our audit in accordance with auditing standards generally accepted in
the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Town's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion
on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of
the Town of Franklinton, Louisiana's internal control over financial reporting. Accordingly, we do
not express an opinion on the effectiveness of the Town of Franklinton, Louisiana's internal control
over financial reporting.
A control deficiency exists when the design or operation of control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent and detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the entity's ability to initiate, authorize, process, or report
financial data reliably in accordance with generally accepted accounting principles, such that there
is more than a remote likelihood thai a misstatement of the Town's financial statements thai is more
than inconsequential will not be prevented or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements will
not be prevented or detected by the Town's internal control.
Our consideration of the internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies in
internal control that might be significant deficiencies or material weaknesses. We did not identify
any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.
110 VETERANS MEMORIAL BOULEVARD, SUITE 200, METAIRIE, LA 70005-4958 * 504.835.5522 • FAX 504.835.5535
5100 VILLAGE WALK, SUITE 202, COVINCTON, LA 70433-4012 • 985.892.5850 • FAX 985.892.5956
5153 BLUEBONNET BOULEVARD, SUITES, BATON ROUGE, LA 70809 • 225.296.5150 • FAX 225.296.5151
WWW.LAPORTE.COM
RSM McGladrey Network
An Independently Owned Member
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, noncompHance with which could have a direct
and material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and, accordingly,
we do not express such an opinion. The results of our tests disclosed an instance of
noncompliance that is required to be reported under Government Auditing Standards and is
described in the accompanying schedule of findings and responses.
The Town's response to the findings identified in our audit is described in the accompanying
schedule of findings and responses. We did not audit the Town's response and, accordingly,
express no opinion on it.
This report is intended solely for the information and use of the management of TOWN OF
FRANKLINTON, LOUISIANA, and the Legislative Auditor of the State of Louisiana, and is not
intended to be, and should not be, used by anyone other than those specified parties. Under
Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public
document.
A Professional Accounting Corporation
April 7, 2008
Town of Franklinton
Schedule of Findings and Responses
For the Year Ended October 31,2007
2007 - 1
Failure to Amend Budget
Condition
Actual expenditures of the Streets and Drainage Ad Valorem Fund
exceeded budgeted expendiutres resulting in an unfavorable
variance of $51,833 or 174%. Actual expenditures of the
Equipment Sales Tax Fund exceeded budgeted appropriations
resulting in an unfavorable variance of $56,530 or 27%. Also,
actual expenditures of the Industrial Development Sales Tax Fund
exceeded budgeted appropriations resulting in an unfavorable
variance of $195,055 or 81%.
Effect
Violation of LRS 39:1310.
Criteria
LRS 13; 1310 requires the government to amend its budget when it
sees that revenues are falling short of budget and expenditures are
exceeding budget by more than 5%
Recommendation
The Town should review its budget to actual reports more
frequently.
Management
Response
The Town will review its budgetary comparison reports more
closely and will adopt budget as necessary.
Town of Franklinton
Schedule of Prior Audit Findings and Questioned Cost
For the Year Ended October 31, 2006
2006 -1
Noncompliance with FEMA regulations (CFDA 97.036)
This finding has been resolved. The debris removal projects were
completed in the year ended October 31,2006.
2006 - 2
Inadequate collatcraliztion of bank deposits.
This finding has been resolved.
2006 - 3
Failure to Amend Budget
This finding has not been resolved. See current year finding 2007-1.
TOWN OF FRANKLINTON
301 Eleventh Avenue
Franklinton, Louisiana 70438
Earle R Brown, Sr, Mayor
Phone 985-839-3569
Fax 985-839-3552
John L. Daniel
William R. Durden
M. Wayne Fleming
Florence Manning
April 7, 2008
Legislative Audit Advisory Committee
P.O. Box 94397
Baton Rouge, LA 70804-9397
To Whom It May Concern:
I am writing in response to a compliance finding included in the audit of the Town of
Franklinton for the year ended October 31,2007.
2007-1
Louisiana law requires the government to amend its budget when it sees
that revenues and expenditures are falling short or exceeding budgeted
amounts by 5%. The Town did not amend its budget accordingly during
the year. We will review our budget to actual reports more frequently.
Sincerely,
Earle R. Brown, Sr.
Mayor

Town of Franklinton

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