Download - St. Tammany Parish Recreation District No. 2 · ST. TAMMANY PARISH RECREATION DISTRICT # 2 ... CPA May 11, 2005-1 — ... St. Tammany Parish Recreation District No. 2 is pleased to

REPORT

ST. TAMMANY PARISH RECREATION DISTRICT No. 2a Component Unit of

ST. TAMMANY PARISH GOVERNMENTBush, Louisiana

Annual Financial StatementsAs of and for Year

Ended December 31, 2004with Supplemental Information Schedules

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

Release Date_

ST. TAMMANY PARISH RECREATION DISTRICT # 2ST. TAMMANY PARISH GOVERNMENT

Bush, Louisiana

Component Unit Financial StatementsAs of and for the Year Ended December 31, 2004

With Supplemental Information Schedule

C O N T E N T S

Page No.

ACCOUNTANT'S COMPILATION LETTER 1

MANAGEMENT DISCUSSION AND ANALYSIS 2-9

FINANCIAL STATEMENTS

GOVERNMENT-WIDE STATEMENTS:Statement

Statement of Net Assets A 10

Statement of Activities B 11

GOVERNMENTAL FUNDS:

Balance Sheet C 12

Statement of Revenues. Expendituresand Changes in Retained Earnings D 13

NOTES TO FINANCIAL STATEMENTS 14-22

SUPPLEMENTAL INFORMATION

Budgetary Comparison Schedule-General Fund Schedule 1 23

Board of Commissioners Compensation Schedule 2 24

WILLIAM R. DURDEN

82O 11T)I AVJOIUKKKANKI.INTON, L,Oi:iSIANA 7O43K

«>85>8:«)-44i:JFAX (»85)8:W)-44O2

M KM HER MKM HERA. I.C. P. A. L.r.P.A.

Board of CommissionersSt. Tammany ParishRecreation District # 2Bush, Louisiana

I have compiled the accompanying financial statements, of the St. Tammany Parish Recreation DistrictNo, 2, {component unit of St. Tammany Parish Government), and supplemental information, containedin Schedules 1 & 2, which is presented only for supplemental analysis purposes, as of and for the yearended December 31, 2004. These financial statements are reported in accordance with theStatements on Standards for Accounting and Review Services issued by the American Institute ofCertified Public Accountants.

A compilation is limited to presenting in the form of financial statements information that is therepresentation of management. I have not audited or reviewed the accompanying financial statementsand, accordingly, do not express an opinion or any other form of assurance on them.

The management's discussion and analysis and budgetary comparison information, on pages 2through 9 and 23 are not a required part of the basic financial statements but are supplementaryinformation required by the Governmental Accounting Standards Board. I have compiled thesupplementary information from information that is the representation of management, without audit orreview. Accordingly, I do not express an opinion or any other form of assurance on the supplementaryinformation.

William R. Durden, CPA

May 11, 2005

-1 —

Management's Discussion and Analysis

ST TAMMANY PARISH RECREATION DISTRICT NO. 2ST. TAMMANY PARISH GOVERNMENT

Bush, Louisiana


Introduction

St. Tammany Parish Recreation District No. 2 is pleased to present its Annual FinancialReport developed in compliance with Governmental Accounting Standard BoardStatement No. 34, Basic Financial Statements - Management's Discussion and Analysis- For State and Local Governments (hereinafter referred to as GASB 34) and relatedstandards.

The Management's Discussion and Analysis (MD&A) is designed to :

1. assist the reader in focusing on significant financial issues,

2. provide an overview of the District's financial activities,

3. identify changes in the District's overall financial position and results of operationsand assist the user in determining whether the financial position has improved ordeteriorated as a result of the year's operations.

4. identify any significant variations from the original, amended, and final budgetamounts and include any currently known reasons for those variations that areexpected to have a significant effect on future services or liquidity, and

5. identify individual fund issues or concerns.

The information contained within this MD&A should be considered only as part of a whole.The reader of this statement should take time to read and evaluate all sections of thisreport, including the footnotes and other Required Supplemental Information (RSI) that areprovided in addition to this MD&A.

Overview of Annual Financial Report

Management's Discussion and Analysis (MD&A) serves as an introduction to the basicfinancial statements. The District's basic financial statements are comprised of threecomponents: 1) government-wide statements, 2) fund financial statements, and 3) notes tothe financial statements. This report also contains other supplementary information inadditions to basic financial statements themselves.

Government-wide financial statements - The government-wide financial statements aredesigned to provide readers with a board overview of the District's finances, in a mannersimilar to private-sector business. These financial statements are reported using the fullaccrual accounting methods.

-2-


Bush, Louisiana


The statement of net assets presents information on all of the District's assets andliabilities, with difference between the two reported as net assets. Over time, increases ordecreases in nets assets may serve as a useful indicator of whether the financial positionof the District is improving or deteriorating.

The statement of activities presents information showing how the government's net assetschanged during the most recent fiscal year. All changes in net assets are reported as soonas the underlying event giving rise to the change occurs, regardless of the timing of relatedcash flows.

The statement of net assets and the statement of activities display information about theDistrict as a whole. These statements distinguish between those activities of District thatare governmental and those that are considered business type activities.

Fund financial statements - A fund is a grouping of related accounts that is used tomaintain control over resource that has been segregated for specific activities orobjectives. The District segregates transactions related to certain functions or activities inseparate funds in order to aid financial management and to demonstrate legal compliance.The modified accrual basis of accounting is used by the governmental funds.

Notes to financial statements - The notes to the financial statements provide requireddisclosure essential to the understanding of the financial statements. The notes presentinformation about the District's accounting policies, significant account balances, andactivities, commitments, contingencies, and subsequent events, if any. Supplementaryinformation includes a comparative budget schedule.

Financial Highlights

• Total assets for the year-ended December 31, 2004 were $1,215,662 andexceeded liabilities in the amount of $331,433 (i.e., net assets). Of the total netassets, $36,475 was unrestricted and available to support short-term operations,with the balance invested in capital assets net of related debt or restricted for long-term debt service.

• Revenues consist of ad valorem taxes, state revenue sharing and recreationprogram fees. The total revenues for the fiscal year ending December 31, 2004were $127,967 representing an approximate increased of 36.88% from totalrevenues for fiscal year December 31, 2003 of $93,488. This increase was due toan increase in ad valorem tax revenue, created by re-assessment of tax propertyfor St. Tammany Parish.

-3-


Bush, Louisiana


• Total long-term debt increased from $520,000 at December 31,2003 to $880,000at December 31, 2004. The increase is due to a new bond issue of $385,000dated November 9, 2004 to be used to construct new ball fields.

Financial Analysis

Statement of Net Assets

Shown below is a condensed comparative Statement of Net Assets for the District. The condensedformat allows the reader to view the overall financial position of the District. An explanation of thecomponents of this statement is included immediately following the table.

Condensed Balance Sheet

December 31, December 31, Dollar Percent2003 2004 Change Change

Total Assets $ 799.260 $ 1,215.662 $ 416,402 52.10%

Total Liabilities $ 609.043 $ 884.229 $ 275.186 45.18%

Net AssetsInvested in Capital AssetsNet of Related Debt 88,886 112,164 23.278 20.75%Restricted for Debt Service 76,554 182,794 106,240 58.12%Unrestricted 24,777 36.475 11,698 32.07%Total Net Assets 190,217 331,433 141,216 74.24%

Total Liabilities andFund Balances $ 799,260 $ 1,215,662 416,402 52.10%

See page 10 for more detailed Statement of Net Assets for the District.

-4-


Bush, Louisiana


The composition of net assets and the change in net assets over time serves as a usefulindicator of a government's financial position. The District's assets at fiscal year-endexceeded liabilities by $331,433 (net assets). Restricted Net Assets of $182,794 consistof cash funds and receivables for debt service. The balance of net assets includes$112,164 Invested in Capital Assets Net of Related DeJM, and $36,475 of Unrestricted NetAssets

The Unrestricted Net Assets of $36,475 are available to meet the ongoing operating needsof the District.

The largest category of net assets is "Restricted for Debt Service" totaling $182,794, or55.15% of net assets. This category is monies and tax receivables, who's use is restrictedto paying current & long-term debt obligations.

The second largest category of net assets is "Invested in Capital Assets, Net of RelatedDebt", totaling $112,164, or 33.84% of net assets. This category reflects the total investedin capital assets (land, building, equipment, etc.) net of any related debt used to acquirecapital assets. These capital assets are used to provide service to citizens and do notrepresent assets available for future spending.

Condensed Statement Of Activities

December 31, December 31, Dollar Percent2003 2004 Change Change

Total Revenues $ 93.488 $ 127.967 $ 34,479 36.88%Expenditures:Operating Expenditures 26,869 20,239 (6,630) -24.68%Interest expense 25,132 24,353 (779) -3.10%Depreciation 26,031 25,397 (634) -2.44%Total Expenditures 78,032 69,989 (8.043) -10.31%

Excess Revenue OverExpenditures 15,456 57,978 42,522 275.12%

Fund Balance, Beginning of Year 143,201 190,217 47,016 32.83%

Prior-Year Adjustment - 83.238 83.238 100.00%

Fund Balance .End of Year $ 158,657 $ 331,433 $ 172,776 108.90%

-5-


Bush, Louisiana


Significant categories of the Statement of Activities are noted below:

The largest source of revenue is ad valorem taxes totaling $113,279 or 88.52% of totalRevenue. Revenue from sports programs total $9,818 and represent 7.67% of totalrevenue.

The major expense items are Interest $24,353, Depreciation $25,397, and Insurance$4,643. These three categories total 77.73% of total expenses of $69,989.

Analysis of Fund Financial Statements

Governmental Funds

The focus of the District's governmental funds is to provide information on near-terminflows, outflows, and balances of spendable resources. Such information is useful inassessing the District's financing requirements. In particular, unreserved fund balancemay serve as a useful measure of the District's net resources available for spending at theend of the year.

As of December 31, 2004, the District's governmental funds reported a combined endingfund balance of $ 592,689, an increase of $491,358 from the prior year. The reason forthe large increase in combined fund balance is the receipt of proceeds from a bond issueof $385,000 without expenditure of these funds for capital improvements. There was alsoan adjustment to the prior-year fund balance of $86,568 to reclassify deferred revenue ofad valorem taxes. Approximately 10% of the total combined fund balance ($58,377)constitutes unreserved fund balance, which is available for spending at the District'sdiscretion. The remainder of the fund balance is reserved-capital project $351,518, -debtservice $182,794. and is not available to spend at the District's discretion.

The General Fund is the primary operating fund of the District. At the end of 2004, theunreserved balance was $58,377. For the year ended December 31, 2004, the fundbalance increased $35,282. The fund balance increase was due largely to a prior-yearadjustment redassifying deferred income to the fund balance ($18,551). Also, revenueincreased $10,068 over the prior-year, while expenditures decreased $4,868.

Budgetary Highlight

The District adopted its 2004 budget at our regular meeting of December 7, 2003. Theboard of commissioners reviews the budget/actual financial figures on a quarterly basis.We amended the budget and approved it at the regular board meeting of July 6, 2004 andNovember 9, 2004, all appropriations lapse at year-end. The budget/actual schedule ispresented below.

-6-


Bush, Louisiana


Budget vs. Actual - Fiscal Year End December 31, 2004

Genera! FundBudget

Year EndedDecember 31,

2004

$ 19,0001,4001,4005,000

---

26,800

2,500200

4,5005,000

10,000--

1,0001,000

3503,5003,600

31,650

$ (4,850)

ActualYear Ended

December 31,2004

$ 24.2761,9071,3006,1253,6931,681

52039,502

2,600273

4,6433,657

-2,6101,772

-4,555

3701,189

3121,700

$ 17,802

Favorable(Unfavorable)

Variance

$ 5,276507

(100)1,1253,6931,681

52012,702

(100)(73)

(143)1,343

10,000(2,610)(U72)1,000

(3,555)(20)

2,3113,5699,950

$ 22,652

Revenues:Advalorem taxesState revenue sharingBuilding usageBasketballConcessions (net of expense)Transfers in from other fundsOther revenue

Total RevenueExpenditures:

AccountingAdvertisingInsuranceBasketball fees & officialsRepairs & MaintenanceSuppliesCapital OutlayPrintingUtilities & telephoneOffice expenseJanitor & yardOther

Total ExpendituresExcess revenues over (under)expenditures

Actual revenues exceeded budget revenues by $12,702, primarily because ad valoremtaxes were up, and concession revenue was not budgeted. Budget expendituresexceeded actual expenditures by $9,950, due to over budget amounts for repairs &maintenance.

-7-


Bush, Louisiana


Capital Assets

At the end of the fiscal year December 31, 2004, the District had $614,055 (net ofaccumulated depreciation) recorded in capital assets. Capital outlays are recorded asexpenditures of the General Fund and as assets in the government-wide financialstatement. Depreciation is recorded on general fixed assets on a government-wide basisusing the straight-line method of depreciation with the following estimated useful lives:

BuildingsParking LotEquipment

31 years10 years

7-10 years

Fixed assets are valued at historical cost or estimated historical cost if actual cost was notavailable. Donated assets are valued at fair market value on the date donated.

Capital asset activity for the year ended December 31, 2004:

LandGymnasiumParking LotEquipmentBallfield In Construction

subtotalLess Accumulated

DepreciationNet Capital Assets

December 31,

$2003

100,034495,025

9,45970,838

-675,356

December 31 ,2004

$ 100,034495,300

9,45972,33528,795

705,923

DollarChange

$275-

1,49728,79530,567

PercentChange

0.00%0.06%0.00%2.11%

100.00%4.53%

(66.470) (91.867) (25,397)$ 608,886 $ 614,056 $ 5,170

38.21%0.85%

Purchases of capital assets for the year ended December 31,2004 included completion ofa/c installation ($275), and the purchase of a floor buffer ($900) and concession cabinets($597). Construction of the Ball Fields (baseball, softball, & football), began in November2004 and are expected to be completed in 2005 at a cost of $385,000.

-8 -


Bush, Louisiana


Long-Term Debt Activity

Long-term debt, consist of two bond issues:

1) General obligation bonds in the amount of $600,000, issued to finance constructionof the gymnasium, and the purchase of recreation equipment. The bonds wereissued September 1, 1998, and have a balance at December 31, 2004 of $495,000.The bonds are financed with ad valorem taxes assessed on property with-in theDistrict. Average annual debt service over the remaining 14 years is $49,439.

2) General obligation bonds in the amount of $385,000, issued to finance constructionof the ball fields, together with necessary furnishings and equipment. The bondswere issued November 1, 2004, and have a balance at December 31, 2004 of$385,000. The bonds are financed with ad valorem taxes assessed on propertywith-in the District. Average annual debt service over the 14 year life of the bonds is$37,046.

The board feels that property tax collections will be sufficient to service the future debt ofthe District. The largest annual debt obligation is $92,242 and occurs in the year 2016.

DebtYear Assessment Obligation

2003 $20042005

80,269 $86,56889,503

45,13249,35379,055

Long-term obligations are reported as liabilities in the government-wide financialstatements, and in the debt service fund for governmental fund statements. The scheduleof annual long-term debt obligations is presented in note No. 8 to the financial statements.

Future Economic Plans

The District's management approach is conservative in their action. The Board ofCommissioners actively monitors revenues and expenses, and compares them to theannual budget, and evaluates the costs of proposed expansion projects, tn November2004 the Board was able to pass an additional bond issue without increasing propertytaxes. This $385,000 bond issues will be used to construct the ball fields needed tocomplete the recreation facilities. Land preparation began immediately after passage ofthe bond issue and the Board has been able to secure the donation of lights & poles, andfeels the ball fields will be completed in 2005.

- 9 -

FINANCIAL STATEMENTS

STATEMENT A NetAssets

ST. TAMMANY PARISH RECREATION DISTRICT NO. 2ST. TAMMANY PARISH GOVERNMENT

Bush, LouisianaStatement of Net Assets

December 31,2004

GovernmentalActivities

ASSETS:Cash and cash equivalents $ 223,639Receivables 113,279Investments 260,000Bond Issuance Cost, net of amortization 4,687Capital assets, net of depreciation 485,228Construction in Progress 28,795Land 100,034

Total Assets 1,215,662

LIABILITIES:Accounts payable 2,659Accrued interest 1,570Long-term debt due in one year 45,000Long-term debt due more than one year 835,000

Total Liabilities 884,229

NETASSETS:Invested in capital assets, net of related debt 112,164Restricted for debt service 182,794Unrestricted 36,475

Total Net Assets $ 331.433

See accountant's report and accompanying notes to the financial statements-10-

STATEMENT B Stmt of Activities

ST. TAMMANY PARISH RECREATION DISTRICT NO. 2ST. TAMMANY PARISH GOVERNMENT

Bush, LouisianaSTATEMENT OF ACTIVITIES

For the Year ended December 31, 2004

EXPENSES:Advertising $ 273Accounting 2,600Depreciation 25,397Game fees, officials 3,657Insurance 4,643Interest 24,353Janitor & yard 1,189Office expense, postage 370Professional feesSupplies 2,610Utilities & telephone 4,555Other 342Total Program Expenses 69,989

PROGRAM REVENUES:Ad valorem taxes 113,279State revenue sharing 1,907Basketball program 6,125Gym usage fees 1,300Concessions-net of expenses 3,693Investment earnings 1,143Other 520

Net Program Revenues 127,967

Change in Net Assets 57,978Prior-year adjustment 83,238

Net Assets Beginning of Year 190,217

Net Assets End of Year $ 331,433

See accountant's report and accompanying notes to financial statements.-11 -

STATEMENT C

ST. TAMMANY PARISH RECREATION DISTRICT No.2ST. TAMMANY PARISH GOVERNMENT

Bush, Louisiana

GOVERNMENTAL FUNDS

BALANCE SHEETDecember 31,2004

Governmental Funds

ASSETS AND OTHER DEBITS

ASSETS:Cash and cash equivalentsDue from other fundsReceivables

TOTAL ASSETS AND OTHER DEBITS

LIABILITIES AND FUND BALANCE.

LIABILITIES:Accounts payableDue to other fundsAccrued Interest Paid on Bonds

Total Liabilities

FUND BALANCEFund balance - reservedFund balance - unreserved

Total Equity and Other Credits

TOTAL LIABILITIES AND FUND BALANCE

RECONCILATION:Total Governmental Funds BalanceCapital Assets-net of depreciationLandBond Issuance Cost net of AmortizationTotal Bonded Debt

Net Assets of Governmental Activities

GeneralFund

CapitalProjects

Fund

$ 10,17126,58924,276

$ 378,107

$ 2,659 $

2,659

58,37758,377

26,589

26,589

351,518351,518

DebtServiceFund

$ 95,361

89,003$ 61,036 $ 378,107 $ 184.364

1.5701,570

79,055103.739182,794

$ 61,036 $ 378,107 $ 184,364

TotalGovernmental

Funds

$

$

$

483,63926.589

113,279623.507

2,65926,589

1,57030,818

79,055513,634592,689

$

$

623,507

592,689514,023100,034

4,687(880,000)

$ 331,433

See accountant's report and accompanying notes to the financial statements.

-12-

STATEMENT D


Bush, Louisiana

GOVERNMENTAL FUNDS

Statement of Revenues, Expendituresand Changes in Fund Balance

For the Year Ended December 31, 2004

Revenues:Ad valorem taxesState revenue sharingInterest earnedBasketball programRentalConcessions - net of expensesOther revenues

Total Revenues

Expenditures:AdvertisingInsuranceGame fees, officialsSuppliesCapital OutlayLegal and accountingUtilities and telephoneOffice expense, bank chargesJanitor & YardDebt service:

Principal retirementInterest

Bond Issuance CostOther

Total expenditures

Excess (deficiency) of revenues over(under) expenditures

Other Financing Sources (Uses)Bond Sale proceedsTransfers from other fundsTransfers to other funds

Net change in fund balances

Prior-Year AdjustmentFund balance, January 1, 2004

Fund balance, December 31, 2004

RECONCILATION:Change in Fund BalanceCapital purchasesPrincipal retirementDepreciation expenseBond Sale ProceedsBond Issuance CostAmortization of Bond Ccost

Change in Net Assets

General

24,2761,907

6,1251,3003,693

52037,821

2734,6433,6572,6101,7722,6004,555

3701,189

3121,700

16,121

385,0001,681

(385,000)17,802

17.48023.095

$ 58,377

DebtService

89,003

1,143

90,146

25,00024.3534,687

31154.351

35,795

4,687

40,482

65,75876,554

CapitalProjects

28,795

28,795

(28,795)

385,000(6,368)

349,837

1,681

$ 182,794 $ 351.518

Total

113,2791,9071,1436,1251,3003,693520

127.967

2734,6433.6572,61030.5672,6004.555370

1,189

25,00024,3534,687342

104,846

23.121

385,000391,368(391,368)408,121

83,238101,330

$ 592,689

$ 408,12130,56725,000

(25.397)(385,000)

4,687

~$ 57,978

See accountant's report and accompanying notes to the financial statements.

-13-

NOTES TO FINANCIAL STATEMENTS


Bush, Louisiana

Notes to the Financial StatementsFor the year Ended December 31, 2004

NOTE 1 - DESCRIPTION OF COMPONENT UNIT AND REPORTING ENTITY

INTRODUCTION

The St. Tammany Parish Recreation District No. 2 (district) was created by Legislative Act 1988, No. 658 as a pilotprogram to foster and encourage recreational activities and related programs on a parish wide basis, incooperation with all political subdivisions and interested private parties of St. Tammany Parish. As provided byLouisiana Revised Statute 40:1496, the District is governed by a five member board, who are resident propertytaxpayers of the district. The board members are referred to as the Board of Commissioners. The parishgoverning authority appoints them for terms of two to four years. The board members are not compensated fortheir services. The District is located in Bush, Louisiana. The District has completed construction of a gym, and isconstructing baseball and Softball fields to complete a sports complex in Bush, Louisiana.

Reporting Entity

As the governing authority of the parish, for reporting purposes, the St. Tammany Parish Government is thefinancial reporting entity for St. Tammany Parish. The financial reporting entity consists of (a) the primarygovernment, parish council, (b) organizations for which the primary government is financially accountable, and (c)other organizations for which nature and significance of their relationship with the primary government are suchthat exclusion would cause the reporting entity's financial statements to be misleading or incomplete

GASB Statement No. 14, The Reporting Entity, established criteria for determining the governmental reportingentity and component units that should be included within the reporting entity. The basic criterion for including apotential component unit within the reporting entity is financial accountability. The GASB has set forth criteria to beconsidered in determining financial accountability. The criteria includes:

1. Appointing a voting majority of an organization's governing body, and

a. The ability of the parish government to impose its will on that organization and/or

b. The potential for the organization to provide specific financial benefits to or impose specificfinancial burdens on the parish government.

2. Organizations for which the parish government does not appoint a voting majority but are fiscallydependent on the parish government.

3. Organizations for which the reporting entity financial statements would be misleading if data of theorganization is not included because of the nature or significance of the relationship.

Because the parish government appoints a voting majority of the District's governing board and the parishgovernment has the ability to impose its will on the District, the District was determined to be a component unit ofthe St. Tammany Parish Government, the financial reporting entity. The accompanying financial statementspresent information only on the funds maintained by the District and do not present information on the parishgovernment, the general government services provided by that governmental unit, or the other governmental unitsthat comprise the financial reporting entity.

14-


Bush, Louisiana

Notes to the Financial Statements (Continued)For the year Ended December 31, 2004

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements of the St. Tammany Parish Recreation District No. 2 have been preparedin conformity with generally accepted accounting principles of the United States of America (GAAP) as applied togovernment units. Under Governmental Accounting Standards Board Statement No. 34, a statement of net assetsand a statement of activities are prepared, which are presented on the accrual basis of accounting. Thesignificant differences are the reporting of 1) capital outlays as assets and corresponding depreciation, 2) longterm debt obligations as liabilities in the government-wide statement. The Governmental Accounting StandardsBoard (GASB) is the accepted standard setting body for establishing governmental accounting and financialreporting principles.

A. BASIS OF PRESENTATION

Government-Wide StatementsThe statement of net assets and the statement of activities displays, information about the District, as a

whole. These statements distinguish between those activities of the District that are governmental and thosethat are considered business type activities.

Fund Financial StatementsDuring the year, the District segregates transactions related to certain functions or activities in separate

funds in order to aid financial management and to demonstrate legal compliance.

B. FUND ACCOUNTING

The District uses funds to maintain its financial records during the year. A fund is a separate accountingentity with a self-balancing set of accounts.

Funds of the District are classified as governmental funds. Governmental funds account for the District'sgeneral activities, including the collection and disbursements of specific or legally restricted monies, theacquisition or construction of general fixed assets, and the servicing of general long-term debt. Governmentalfunds of the District include:

a. General Fund - the general operating fund of the District accounts for all financial resources, exceptthose, required to be accounted for in other funds.

b. Debt Service Fund - accounts for transactions relating to resources retained and used for thepayment of principal and interest on those long-term obligations recorded in the General Long-termDebt Account Group.

c. Capital Projects Fund - accounts for financial resources received from the issuance of generalobligation bonds and used for the acquisition, construction, or improvement of capital facilities notreported in the other governmental funds.

-15-

ST. TAMMANY PARISH RECREATION DISTRICT #2ST. TAMMANY PARISH GOVERNMENT

Bush, Louisiana


C. GOVERNMENT-WIDE FINANCIAL STATEMENTS

The government-wide financial statements (i.e., the statement of net assets and the statement of changes innet assets) report information on all activities of the District. For the most part the effect of inter-fund activityhas been removed from these statements. Governmental activities, which normally are supported by taxesand inter-governmental revenues, are reported separately from business-type activities, which rely to asignificant extent on fees and charges for support.

The statement of activities demonstrates the degree, to which the direct expenses, of a given function orsegment, are offset by program revenues. Direct expenses are those expenses that are clearly identifiablewith a specific function or segment. Program revenues include 1) charges to customers or applicants whopurchase, use or directly benefit from goods, services or privileges provided by a given function or segmentand 2) grants and contributions that are restricted to meeting the operational or capital requirements of aparticular function or segment. Taxes and other items not properly included among program revenues wouldbe reported as general revenues.

D. BASIS OF ACCOUNTING

The accounting and financial reporting treatment applied to a fund is determined by the fund's measurementfocus. With this measurement of focus, only current assets and current liabilities generally are included on thebalance sheet in the fund statements. Long-term assets and long-term liabilities are included in thegovernmental-wide statements. Operating statements, of governmental funds, present increases in revenues,and other financing sources, and decreases in expenditures and other financing uses in current assets.

The government-wide financial statements are reported using the economic resources measurement focusand the accrual basis of accounting. With this measurement focus, all assets and all liabilities associated withthe operation of these activities are included on the statement of net assets. Revenues are recorded whenearned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

The modified accrual basis of accounting is used by governmental funds. The accounting and financialreporting treatment applied to a fund is determined by its measurement focus. Governmental funds areaccounted for using a current financial resources measurement focus. With this measurement focus, onlycurrent assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases and decreases in net current assets. Effective for financial statements issuedafter June 30, 2000, GASB Statement 33, Accounting and Financial Reporting for Non-exchangeTransactions, defines a non-exchange transaction as a transaction whereby the government gives or receivesvalue without directly receiving or giving equal value in return. Property taxes are imposed non-exchangerevenues, which result from assessments imposed on non-governmental entities including individuals. Assetsshould be recognized when the government has an enforceable lien or legal claim to the resources, or theresources are received, whichever occurs first. Revenues are recognized in the period when use of theresources is required or first permitted by time requirements, for example for property taxes, the period forwhich (budget period) they are levied, or at the same time the assets are recognized, if no time requirementshave been established. Resources received or recognized as receivable before the time requirements aremet should be recognized as deferred revenue. However, for revenue to be recognized under the modifiedaccrual basis, the measurable and available criteria must also be met. Governmental funds use the followingpractices in recording revenues and expenditures:

-16-


Bush, Louisiana


Revenues

Revenues are recognized in the accounting period they become available and measurable. State revenuesharing is recorded when received. Ad valorem taxes become a lien against the assessed property onassessment date or levy date therefore; a receivable is recorded at this time.

Expenditures

Under the modified accrual basis of accounting, expenditures are recorded when the related fund liability isincurred.

E. BUDGETS

The budget for the year ending December 31, 2004 was adopted at the District's December 7, 2003 regularmeeting. The budget was amended twice during 2004, first on July 6, 2004 and again on November 9, 2004.The 2005 budget was presented and adopted at the District's regular meeting in November 2004. Allappropriations lapse at year-end.

F. ENCUMBRANCES

The District does not use encumbrance accounting.

G. CASH AND CASH EQUIVALENTS

Cash includes amounts in demand deposits, interest bearing demand deposits, and time deposits. Cashequivalents include amounts in time deposits and those investments with original maturities of 90 days or less.Under state law, the District may deposit funds in demand deposits, interest-bearing demand deposits, moneymarket accounts, or time deposits with state banks organized under Louisiana law and national banks havingtheir principal offices in Louisiana.

H. PREPAID ITEMS

The District uses the non-allocation method of recording prepaid expenses.

I. CAPITAL ASSETS

Capital assets are recorded as expenditures of the General Fund and as assets in the government-widefinancial statement. Interest costs incurred during construction are not capitalized. Depreciation is recordedon general fixed assets on a government-wide basis using the straight-line method and the followingestimated useful lives:

Buildings 31 yearsParking Lot 10 yearsEquipment 5-7 years

Fixed assets are valued at historical cost or estimated historical cost if actual cost was not available. Donatedassets are valued at fair market value on the date donated.

-17-


Bush, Louisiana


J. COMPENSATED ABSENCES

The District does not have any full time compensated employees and therefore does not have a policy relatingto vacation and sick leave.

K. LONG-TERM OBLIGATIONS

Long-term obligations are reported in the government-wide financial statements as liabilities.

L. FUND BALANCE RESERVES

Reserves

Reserves represent those portions of fund equity not appropriable for general operation expenditures orlegally segregated for a specific future use.

Designated Fund Balances

Designated fund balances represent tentative plans for future use of financial resources.

NOTE 3-LEVIED TAXES

On July 18,1998, the voters of the District passed two propositions to provide funding for the recreation facilities:

a. A 3 mill ad valorem tax was approved for the purpose of acquiring, constructing, improving, maintaining oroperating parks, playgrounds, recreation centers and other recreational facilities in the District for a period of10 years beginning in 1998. For the period covered by these financial statements, the millage was set at 3mills.

b. A proposition was also passed to issue general obligation bonds in the amount of $600,000. to run 20years for purchasing, acquiring, constructing and improving parks, playgrounds, recreation centers and otherrecreational facilities, together with the necessary furnishings and equipment there for, title to which shall bein the public. Bonds shall be payable from ad valorem taxes, the millage of which was set at 11 mills for theperiod covered by these financial statement

11 mill tax (less pension deduction)

3 mill tax (less pension deduction)

-18-


Bush, Louisiana


NOTE 4 - CASH AND CASH EQUIVALENTS

At December 31, 2004 the District has cash and cash equivalents totaling $223,639, as follows:

Demand deposits $ 30,960C D's with 90 days or less maturity 192,679

Total cash and cash equivalents $ 223,639

These deposits are stated at cost, which approximates market. Under state law, these deposits (or the resultingbank balances) must be secured by federal deposit insurance or the pledge of securities owned by the fiscal agentbank. The market value of the pledged securities plus the federal deposit insurance must at all times equal theamount on deposit with the fiscal agent. These securities are to be held in the name of the pledging fiscal agentbank in a holding or custodial bank that is mutually acceptable to both parties. At December 31, 2004 the Districthad $31,860, in deposits (collected bank balances, including certificates of deposit). These deposits were securedfrom risk by $100,000, of federal deposit insurance and $528,328, of pledged securities held by the custodial bankin the name of the fiscal agent bank (GASB Category 3). Even though the pledged securities are considereduncollateralized under the provisions of GASB Statement 3, Louisiana Revised Statute 39:1229 imposes astatutory requirement on the custodial bank to advertise and sell the pledged securities within 10 days of beingnotified by the District that the fiscal agent has failed to pay deposited funds upon demand.

NOTE 5-INVESTMENTS

Investments consist of cash of $260,000 in Bank Certificates of Deposits with maturities of more than 90 days asfollows:

120 day Certificate $ 160,000180 day Certificate 100.000

Total $ 260.000

These investments are stated at cost, which approximates market. These deposits are secured by federal depositinsurance of $100,000 plus the $528,328 of pledged securities as stated in note 3.

NOTE 6 - RECEIVABLES

The following is a summary of receivables at December 31, 2004:

Class of receivable Ad valorem taxes

General Fund-Ad Valorem Taxes $ 24,276Debt Service Fund-Ad Valorem Taxes 89,003

Total receivables $ 113,279

These balances will be collected during the period from January 1,2004 to May 31, 2004.-19-


Bush, Louisiana


NOTE 7 - CAPITAL ASSETS

Capital asset activity for the year ended December 31, 2004.

Capital assets not being depreciated:Land

Capital assets being depreciated:Buildings and improvementsMachinery & equipment

Total capital assets being depreciatedLess accumulated depreciation for:

Buildings and improvementsMachinery & equipment

Total accumulated depreciationTotal Capital assets being depreciated-net

Total capital assets-net of depreciation

BalanceJanuary 1,

2004

100.034

504,48470.838

575,322

(35,556)(30,814)

Additions Deductions

(18,030)(8,002)

(66.370) (26.032)508,952 (26,032)

BalanceDecember 31,

2004

100,034

504.48470.838

575,322

(53,586)(38,816)(92.402)482,920

The District's threshold for inclusion of assets on the capital asset list is $500. Assets are recorded atcost and depreciation is calculated on the straight-line basis

NOTE 8 - GENERAL LONG-TERM DEBT

The following is a summary of the long-term obligation transactions during 2004:

BalanceJanuary 1,

2004 Additions Payments$ 520,000 $ 25,000

$ 385,000$ 520,000 $ 385,000 $ 25,000

BalanceDecember 31,

2004$

$

495.000385,000880,000

AmountDue InOne Year$ 25,000

20.000$ 45,000

General long-term obligations are comprised of the following issues:

a. 1998 General obligation bonds dated September 1,1998 with an original issue amount of $600,000, maturingSeptember 1, 2018, and bearing interest at rates of 3.5% to 6.65%. Principal is due annually on September 1 andinterest is due semi-annually on March 1 and September 1. These bonds were issued for the purpose ofpurchasing, acquiring, constructing and improving parks, playgrounds, recreation centers and other recreationalfacilities, together with the necessary furnishings and equipment, said bonds to be payable from ad valorem taxes.The annual requirements to amortize these General Obligation Bonds outstanding at December 31, 2004,including interest of $221.500, are as follows:

-20-


Bush, Louisiana

Notes to the Financial Statements (Continued)For the Year Ended December 31, 2004

Year EndingDecember 31, Principal Interest Total

2005 25,000 23,353 48,3532006 25,000 22,328 47.3282007 30,000 21,278 51,2782008 30,000 19,852 49,8522009 30,000 17,857 47,857

2010-2014 175,000 69,323 244,3232015-2018 180,000 23,154 203,154

$ 495,000 $ 197,145 $ 692,145

b. On September 18, 2004 the voters of the District passed a proposition to issue general obligationbonds in the amount of $385,000, for acquiring, constructing and improving parks, playgrounds,recreation centers and other recreational facilities, together with the necessary furnishings andequipment there for, title to which shall be in the public. The bonds were dated November 1, 2004,and will mature September 1, 2018. The bonds bear interest at rates of 1.5% to 6.0%. Principal isdue annually on September 1 and interest is due semi-annually on March 1 and September 1. Thebonds are payable from the same ad valorem taxes as the bond issue listed in paragraph "a". Theannual requirements to amortize these General Obligation Bonds outstanding at December 31, 2004,including interest of $133,642 are as follows;

Year EndingDecember 31. Principal Interest Total

2005 $ 20,000 $ 10,702 $ 30,7022006 20,000 12,823 32,8232007 20,000 12,802 32,8022008 25,000 12,783 37,7832009 25,000 12,757 37,757

2010-2014 140,000 54,250 194,2502015-2018 135.000 17,525 152,525

$ 385.000 _$ 133,642 _$ 518,642

-21 -


Bush, Louisiana

Notes to the Financial Statements (Continued)For the Year Ended December 31, 2004

NOTE 9 - FUND BALANCE - RESERVE

The reserved fund balance is funds set aside to pay the next annual installment of the generalobligation bonds.

NOTE 10 - LITIGATION AND CLAIMS

As of December 31, 2004, there were no litigations or claims against the district.

NOTE 11 - RELATED PARTY TRANSACTIONS

There were no related party transactions during the year 2004.

NOTE 12 - SUBSEQUENT EVENTS

No subsequent events occurred affecting the financial statements.

-22-

SUPPLEMENTAL INFORMATION

Schedule 1

ST TAMMANY PARISH RECREATION DISTRICT # 2ST. TAMMANY PARISH GOVERNMENT

Bush, Louisiana

GOVERNMENTAL FUNDS

Statement of Revenues, Expendituresand Changes in Fund Balance -

Budget and Actual - General FundFor the Year Ended December 31, 2004

Revenues:Ad valorem taxesState revenue sharingBuilding usageBasketballConcessions (net of expense)Transfer In from Other FundsOther revenue

Total Revenues

Expenditures:AccountingAdvertisingInsuranceBasketball fees & officialsRepairs and maintenanceSuppliesCapital OutlayProfessional FeesPrintingUtilities & TelephoneOffice expenseJanitor & yardOther

Total expenditures

Excess of revenues over (under)expenditures

Fund balance, January 1,2004

Prior-Year adjustment

Fund balance, December 31, 2004

OriginalBudget

$ 17,0001.3502,5001,5001,500

-500

24,350

2,000200

6,0005,500

20,0001,700

-1,0001,0005,975

2502,5002,100

48,225

(23,875)

27,000

„

S 3,125

GeneralAmended

Budget

$ 19.0001,4001,4005,000

---

26,800

2,500200

4,5005,000

10,000--

1,0001,000

3503,5003,600

31,650

(4.850)

10,075

_

$ 5,225

Fund

Actual

$ 24,2761.9071,3006,1253,6931.681

52039,502

2,600273

4,6433,657

-2,6101,772

--

4,555370

1,18931

21,700

17,802

23.095

17,480

$ 58,377

Variance

$ 5,276507

(100)1,1253,6931,681

52012,702

(100)(73)

(143)1,343

10,000(2.610)(1,772)

-1.000

(3,555)(20)

2,3113,5699,950

$ 22,652

See accountant's report

-23-

Schedule 2


Bush, Louisiana

COMPENSATION PAID BOARD MEMBERS

The schedule of compensation paid to board members is presented in compliance with HouseConcurrent Resolution No. 54 of the 1979 Session of the Louisiana Legislature.

The Board of Commissioners of the District consists of five members appointed by the St.Tammany Parish Government.

Board members were not paid any compensation for the year ended December 31, 2004.

See accountant's report

-24-

Download - St. Tammany Parish Recreation District No. 2 · ST. TAMMANY PARISH RECREATION DISTRICT # 2 ... CPA May 11, 2005-1 — ... St. Tammany Parish Recreation District No. 2 is pleased to

Top Related