Norco Area Volunteer Fire Department - area volunteer fire department, inc. for the year ended december 31.2005 o^^^^^sf state law, ... norco area volunteer fire department, inc. statement

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<ul><li><p>ANNUAL FINANCIAL REPORT</p><p>NORCO AREA VOLUNTEER FIRE DEPARTMENT, INC.</p><p>FOR THE YEAR ENDED</p><p>DECEMBER 31.2005</p><p>of state law, this report is a public</p><p>^^^^^s^oie entity and other appropriate P^ c o*cws. Thereport is available for public inspechon attt ,e B*on</p><p>^^appropriate, a</p><p>E R I C K S E N K R E N T E L &amp;LAPORTEL.LRC E R T I F I E D P U B L I C A C C O U N T A N T S ~&amp; C 0 N S U L T A N T S</p><p>4227 CANAL STREETNEW ORLEANS, LOUISIANA 70119-5996TELEPHONE (504) 486-7275 PAX (504} 482-2516WWW.ERICKSENKRENTEL.COM</p></li><li><p>TABLE OF CONTENTS</p><p>EXHIBIT PAGE</p><p>FINANCIAL SECTION</p><p>INDEPENDENT AUDITORS' REPORT ; 1-2</p><p>REQUIRED SUPPLEMENTARY INFORMATION:</p><p>Managements Discussion and Analysis (Unaudited) 3-5</p><p>BASIC FINANCIAL STATEMENTS:</p><p>GOVERNMENTAL-WIDE FINANCIAL STATEMENTS (GWFS)</p><p>Statement of Net Assets A 6</p><p>Statement of Activities B 7</p><p>FUND FINANCIAL STATEMENTS (FFS)</p><p>Governmental Funds:</p><p>Balance Sheet C 8</p><p>Reconciliation of the Governmental Funds Balance Sheet to theStatement of Net Assets D 9</p><p>Statement of Revenues, Expenditures, and Changes inFund Balances E 10</p><p>Reconciliation of the Statement of Revenues, Expenditures, andChanges in Fund Balances of Governmental Funds to theStatement of Activities F 11</p><p>NOTES TO FINANCIAL STATEMENTS 12-18</p><p>Report on Internal Control Over Financial Reporting and on Complianceand Other Matters Based on an Audit of Financial Statements Performedin Accordance with Government Auditing Standards 19 - 20</p><p>Schedule of Findings and Questioned Costs.... 21 - 22</p><p>Schedule of Prior Year Findings 23</p></li><li><p>--, T f -Y ^ JAMES E.</p><p>E RICKS ENKRENTEL &amp; LAPORTEt L r. .N, Jff.</p><p>CERTIFIED PUBLIC A C C O U N T A N T S &amp; CONSULTANTS</p><p>KENNETH J.</p><p>4227 CANAL STREET W. ERIC POWERS</p><p>NEW ORLEANS, LOUISIANA 70119-5996 ITOFESSIONAL CORPORATIONTELEPHONE (504) 486-7275 - FAX (504) 482-2516 BENJAMIN J. BUCKSEN - RETIRED</p><p>WWW.ERtCKSENKRENTEL.COM J-v- ^ERE KREMTEI. - RE</p><p>INDEPENDENT AUDITORS' REPORT</p><p>Norco Area Volunteer Fire Department, Inc.P.O. Box 321Norco, Louisiana 70079</p><p>We have audited the accompanying financial statements of the governmental activities and eachmajor fund of the Norco Area Volunteer Fire Department, Inc. (the Fire Department) as of andfor the year ended December 31,2005, which collectively comprise the Fire Department's basicfinancial statements as listed in the table of contents. These financial statements are theresponsibility of the Fire Department's management. Our responsibility is to express opinions onthese financial statements based on our audit.</p><p>We conducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America, the Louisiana Governmental Audit Guide and the standards applicable tofinancial audits contained in Government Auditing Standards^ issued by the Comptroller Generalof the United States. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of material misstatementAn audit includes examining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for our opinions.</p><p>In our opinion, the financial statements referred to above present fairly, in all material respects,the respective financial position of the governmental activities and each major fund of the NorcoArea Volunteer Fire Department, Inc. as of December 31,2005, and the respective changes infinancial position, thereof for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.</p><p>In accordance with Government Auditing Standards, we have also issued our report dated June 2,2006, on our consideration of the Norco Area Volunteer Fire Department, Inc.'s internal controlover financial reporting and on our tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements and other matters. The purpose of that report is todescribe the scope of our testing of internal control over financial reporting and compliance andthe results of that testing and not to provide an opinion on the internal control over financialreporting or on compliance. That report is an integral part of an audit performed in accordancewith Government Auditing Standards and should be considered in conjunction with this report inconsidering the results of our audit.</p></li><li><p>E RICKS EN KRENTEL&amp; LAPORTEI.L.P.CERTIFIED PUBLIC ACCOUNTANTS &amp; CONSULTANTS</p><p>Norco Area Volunteer Fire Department, Inc.June 2,2006Page 2</p><p>The management's discussion and analysis information on pages 3 through 5 are not a requiredpart of the basic financial statements but are supplementary information required by accountingprinciples generally accepted in the United States of America. We have applied certain limitedprocedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation of the required supplementary information. However, we did notaudit the information and express no opinion on it.</p><p>June 2,2006</p><p>Certified Public Accountants</p></li><li><p>REQUIRED SUPPLEMENTARY INFORMATION</p></li><li><p>NORCO AREA VOLUNTEER FIRE DEPARTMENT, INC.NORCO, LOUISIANA</p><p>MANAGEMENT'S DISCUSSION AND ANALYSISAS OF AND FOR THE YEAR ENDED DECEMBER 31. 2005</p><p>This section of the Norco Area Volunteer Fire Department (the Fire Department) annualfinancial report presents management's analysis of the Fire Department's financial performancefor the year ended December 31,2005. This analysis should be read in conjunction with theaudited financial statements, which follow this section.</p><p>FINANCIAL HIGHLIGHTS</p><p>1. The Fire Department's net assets increased by $81,080.2. The general revenues of the Fire Department were $321,747.3. The total expenses of the Fire Department were $240,668.</p><p>OVERVIEW OF THE FINANCIAL STATEMENTS</p><p>This report consists of two sections: Management's Discussion and Analysis and auditedfinancial statements. The financial statements also include notes that provide additional detail ofthe information included in the financial statements.</p><p>BASIC FINANCIAL STATEMENTS</p><p>The financial statements of the Fire Department report information about the Fire Departmentusing accounting methods similar to those used by private companies. These financialstatements provide financial information about the activities of the Fire Department.</p><p>The Statement of Net Assets presents the current and long-term portions of assets and liabilitiesseparately,</p><p>The Statement of Revenues, Expenditures and Changes in Fund Balance and the Statement ofActivities presents information on how the Fire Department's net assets changed as a result ofcurrent period operations.</p><p>The following presents condensed financial information of the Fire Department.</p><p>SUMMARY OF NET ASSETSFOR THE YEARS ENDED DECEMBER 31. 2005 AND 2004</p><p>ASSETS</p><p>Current assetsCapital assets, net of accumulateddepreciation</p><p>December 31, December 31,2005 2004</p><p>$ 315,451 $ 251,484</p><p>794,405 797,317</p><p>Total assets S _LJQ</p></li><li><p>NORCO AREA VOLUNTEER FIRE DEPARTMENT, INC.NORCO, LOUISIANA</p><p>MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)AS OF AND FOR THE YEAR ENDED DECEMBER 31.2005</p><p>LIABILITIESDecember 31, December 31,</p><p>2005 2004</p><p>Current liabilities S 20,195 $ 5,220Long-term liabilities 160,000 195,000</p><p>Total liabilities S 180.195 S 200.220</p><p>NET ASSETS</p><p>Invested in capital assets, net ofrelated debt $ 643,172 $ 602,317</p><p>Unrestricted 286.489 246.264</p><p>Total net assets S 929.661 $ 848.581</p><p>Total assets increased by $61,055 (5,8%). This increase was caused primarily by the FEMAgrant receivable of approximately $20,000 and an increase in cash from operations.</p><p>Total liabilities decreased by $20,025 (10%) primarily because of principal payments on long-term debt.</p><p>Total net assets increased by $81,080 (9.5%) as a result of operations.</p><p>SUMMARY OF REVENUES, EXPENDITURES/EXPENSESAND CHANGES IN NET ASSETS</p><p>FOR THE YEARS ENDED DECEMBER 31. 2005 AND 2004</p><p>December 31, December 31,2005 2004</p><p>General revenues $ 321,748 $ 335,000Expenditures/ expenses (240,668) (290,024)</p><p>Change in net assets S 81.080 S 44.976</p><p>The change in net assets increased by $36,104 (80%). A decrease in grant income caused anoverall decline in general revenues. This decline was offset by a decrease in operating expenses.</p></li><li><p>NORCO AREA VOLUNTEER FIRE DEPARTMENT, INC.NORCO, LOUISIANA</p><p>MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)AS OF AND FOR THE YEAR ENDED DECEMBER 31.2005</p><p>CAPITAL ASSETS</p><p>Following is a schedule of capital assets, net of accumulated depreciation:</p><p>December 31, December 31,2005 2004</p><p>Land $ 52,533 $ 41,644Buildings and improvements 484,587 525,656Equipment 112,422 138,669Computers 2,840 2,296Vehicles 142.023 89.052</p><p>Total capital assets, net ofaccumulated depreciation $ 794.405 S 797.317</p><p>The major additions to capital assets during 2005 consisted of land, vehicles and various fireequipment.</p><p>LONG-TERM DEBT</p><p>At December 31, 2005, the Fire Department had $160,000 in long-term debt which consisted ofbonds payable. During the year, the Fire Department's long-term debt decreased by $35,000.</p><p>This report is designed to provide a general overview of the Fire Department and to demonstratethe Fire Department's accountability for its finances. If you have any questions about this reportor need additional information, please contact Kenny Wenning, Norco Area Volunteer FireDepartment, P.O. Box 321, Norco, Louisiana 70079.</p></li><li><p>BASIC FINANCIAL STATEMENTS</p></li><li><p>Exhibit "A"</p><p>NORCO AREA VOLUNTEER FIRE DEPARTMENT, INC.STATEMENT OF NET ASSETS</p><p>DECEMBER 31. 2005</p><p>ASSETS:Cash $ 255,457Grant receivable 20,880Due from Parish 11,587Prepaid expenses 27,527Capital assets, net of accumulated depreciation 794,405</p><p>Total assets 1,109,856</p><p>LIABILITIES:Accounts payable 12,862Accrued interest payable 7,333Bonds payable:</p><p>Due within one year 60,000Due after one year 100,000</p><p>Total liabilities 180,195</p><p>NET ASSETS:Invested in capital assets, net of related debt 643,172Unrestricted 286,489</p><p>Total net assets $ 929,661</p><p>The accompanying notes are an integral part of this statement6</p></li><li><p>Exhibit "B'</p><p>NORCO AREA VOLUNTEER FIRE DEPARTMENT, INC.STATEMENT OF ACTIVITIES</p><p>FOR THE YEAR ENDED DECEMBER 31. 2005</p><p>GOVERNMENTAL ACTIVITIES:Public safety - fire protection</p><p>Total expenses</p><p>Net (expense) from governmental activities</p><p>GENERAL REVENUES:Sales tax-1/8 centAd valorem taxFire insurance rebateOther revenues</p><p>Total general revenues</p><p>Change in net assets</p><p>Net assets - beginning</p><p>Net assets - ending</p><p>240,668</p><p>240,668</p><p>(240,668)</p><p>142,400123,42816,57639,344</p><p>321,748</p><p>81,080</p><p>848,581</p><p>$ 929,661</p><p>The accompanying notes are an integral part of this statement7</p></li><li><p>Exhibit "C"</p><p>NORCO AREA VOLUNTEER FERE DEPARTMENT, INC.BALANCE SHEET</p><p>DECEMBER 31.2005</p><p>CashGrant receivableDue from ParishPrepaid expenses</p><p>Total assets</p><p>ASSETS</p><p>LIABILITIES AND FUND BALANCE</p><p>LIABILITIES;Accounts payable</p><p>Total liabilities</p><p>FUND BALANCE;Reserved for prepaid expensesUnreserved</p><p>Total fund balance</p><p>Total liabilities and fund balance</p><p>$</p><p>$</p><p>$</p><p>255,45720,88011,58727,527</p><p>315,451</p><p>12,862</p><p>12,862</p><p>27,527275,062</p><p>302,589</p><p>$ 315,451</p><p>The accompanying notes are an integral part of this statement</p></li><li><p>Exhibit "D"</p><p>NORCO AREA VOLUNTEER FIRE DEPARTMENT, INC.RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET</p><p>TO THE STATEMENT OF NET ASSETSFOR THE YEAR ENDED DECEMBER 31. 2005</p><p>Fund balance - total governmental funds $ 302,589</p><p>Amounts reported for governmental activities in the Statement of Net Assetsare different because:</p><p>Net capital assets used in governmental activities are not financial resourcesand, therefore, are not reported in the governmental funds. 794,405</p><p>Long-term liabilities, including bonds payable, are not due and payable inthe current period and, therefore, are not reported in the governmentalfunds. Interest on long-term debt is not accrued in governmental funds,but rather is recognized as an expenditure when due. All liabilities (bothcurrent and long term) are reported in the Statement of Net Assets.</p><p>Accrued interest payable (7,333)Bonds payable (160,000)</p><p>Net assets of governmental activities $ 929,661</p><p>The accompanying notes are an integral part of this statement9</p></li><li><p>Exhibit "E"</p><p>NORCO AREA VOLUNTEER FIRE DEPARTMENT, INC.STATEMENT OF REVENUES, EXPENDITURES AND</p><p>CHANGES IN FUND BALANCEFOR THE YEAR ENDED DECEMBER 31, 2QQ5</p><p>REVENUES:Sales tax -1/8 centAd valorem taxFire insurance rebateOther revenues</p><p>Total revenues</p><p>EXPENDITURES:Utilities:</p><p>ElectricityGasInternetTelephoneWater</p><p>Equipment:MaintenanceFuelInsurance</p><p>Buildings:Maintenance</p><p>Personnel:Training</p><p>Firefighting expenditures:Fire supplies</p><p>Miscellaneous:Accounting and auditingDues and subscriptionsOffice expenseMeetings and other</p><p>Capital outlay:Equipment purchases and building additions</p><p>Debt repayment:Debt retirementInterest expense</p><p>Total expenditures</p><p>Excess of revenues over expenditures</p><p>FUND BALANCE, BEGINNING OF YEAR</p><p>FUND BALANCE, END OF YEAR</p><p>142,400123,42816,57639,344</p><p>321,748</p><p>9,8261,937</p><p>8483,0231,309</p><p>22,7623,969</p><p>30,748</p><p>7,801</p><p>1,797</p><p>3,711</p><p>3,700633</p><p>2,06313,340</p><p>114,689</p><p>35,00010,949</p><p>268,105</p><p>53,643</p><p>248,946</p><p>302,589</p><p>The accompanying notes are an integral part of this statement10</p></li><li><p>Exhibit "F"</p><p>NORCO AREA VOLUNTEER FIRE DEPARTMENT, INC.RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND</p><p>CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSTO THE STATEMENT OF ACTIVITIES</p><p>FOR THE YEAR ENDED DECEMBER 31. 2005</p><p>Net change in fund balance - governmental fund $ 53,643</p><p>Amounts reported for governmental activities in the Statement of Activitiesare different because:</p><p>Governmental funds report capital outlays as expenditures. However inthe Statement of Activities the cost of those assets is allocated overtheir estimated useful lives and reported as depreciation expense. This isthe amount by which capital outlays of $114,689 was exceeded bydepreciation expense of $117,601 in the current period. (2,912)</p><p>Repayments of bond and note principal are reported as financing uses ingovernmental funds and thus contribute to the reduction in fund balance.In the statement of net assets, however, repayment of debt decreases thelong-term liabilities and does not affect the statement of activities. 35,000</p><p>Under the modified accrual basis of accounting used in the governmentalfunds, interest on long-term debt is not recognized until due, ratherthan as it accrues. (4,651)</p><p>Change in net assets of governmental activities $ 81,080</p><p>The accompanying notes are an integral part of this statement11</p></li><li><p>NORCO AREA VOLUNTEER FIRE DEPARTMENT, INC.NOTES TO FINANCIAL STATEMENTS</p><p>DECEMBER 31.2005</p><p>(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</p><p>Reporting Entity</p><p>The Norco Area Volunteer Fire Department, Inc. (Fire Department) receives fundingfrom local and state government sources and must comply with the concomitantrequirements of these funding source entities. However, the Fire Department is a"primary government" and is not included as a component unit of any other St. CharlesParish governmental "reporting entity" as defined in GASB pronouncements, since theentity is a non-profit corporati...</p></li></ul>