west baton rouge parish -...

Fire Protection Sub - District No. 1 of

West Baton Rouge Parish

Addis, Louisiana

Annual Financial Statements

Year ended December 31, 2005

Under provisions of state law, this report is a publicdocument. A copy 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 7 "<3 <£ - o 6 _ _ _ .

Prepared By:

W. Kathleen BeardCertified Public Accountant

10191 Bueche Rd.Erwinville, LA 70729

Table of Contents

PAGE

INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS 1 - 2

REPORT ON COMPLIANCE AND ON INTERNAL CONTROLOVER FINANCIAL REPORTING BASED ON AN AUDIT OFFINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITH GOVERNMENT AUDITING STANDARDS 3-4

Management's Discuss ion and Analysis 5-8

Basic Financial Statements:

Government Wide Financial Statements:

Statement of Net Assets 9Statement of Activities 10

Fund Financial Statements:

Combined Balance Sheet - Governmental Funds 11Reconciliation of Balance Sheet to Statement of Net Assets 12Combined Statement of Revenues, Expenditures and Changes in Fund Balance -

Governmental Funds 13Reconciliation of Statement of Revenues, Expenditures and Changes in

Fund Balance to Statement of Activities 14

Notes to the Financial Statements 15-21

REQUIRED SUPPLEMENTARY INFORMATION:

Budgetary Comparison Schedules - General Fund 22 - 23

Schedule of Findings 24

W. Kathleen Beard

Certified Public Accountant10191 Bueche Rd. Erwinville, LA 70729

(225) 627-4537 - FAX (225) 627-4584

INDEPENDENT AUDITOR'S REPORT

To Mr. Carroll P. Bourgeois, Executive in Chargeand Members of the Board of CommissionersFire Protection Sub - District No. 1 of West Baton Rouge Parish

I have audited the accompanying financial statements of the governmental activities of the Fire ProtectionSub - District No. 1 of West Baton Rouge Parish, as of and for the year ended December 31, 2005, whichcollectively comprise the District's basic financial statements as listed in the table of contents. Thesefinancial statements are the responsibility of the Fire Protection Sub - District No.l of West BatonRouge's management. My responsibility is to express an opinion on these basic financial statementsbased on my audit.

I conducted my audit in accordance with auditing standards generally accepted in the United States ofAmerica, and standards applicable to financial audits contained in Government Auditing Standards, issuedby the Comptroller General of the United States. Those standards require that I plan and perform theaudit to obtain reasonable assurance about whether the basic financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the basic financial statements. An audit also includes assessing the accounting principlesused and significant estimates made by management, as well as evaluation the overall basic financialstatement presentation. I believe that my audit provides a reasonable basis for my opinion.

hi my opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities of the Fire Protection Sub - District No. 1 ofWest Baton Rouge Parish as of December 31,2005, and the respective changes in financial position forthe year then ended in conformity with accounting principles generally accepted in the United States ofAmerica.

The Management's Discussion and Analysis and budgetary comparison information on pages 5 through 8and 20 through 21, respectively, are not a required part of the basic financial statements but aresupplementary information required by the Governmental Accounting Standards Board. Suchinformation has been subjected to the auditing procedures applied in the audit of the basic financialstatements and, in my opinion, is fairly presented in all material respects in relation to the basic financialstatements taken as a whole. .

In accordance with Government Auditing Standards, I have also issued my report dated June 28,2006 onmy consideration of Fire Protection Sub - District No. 1 of West Baton Rouge Parish's internal controlover financial reporting and my tests of its compliance with certain provisions of laws, regulations,contracts and grant agreements. The purpose of that report is to describe the scope of my testing ofinternal control over financial reporting and compliance and the results of that testing, and not to providean 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 consideredin assessing the results of my audit. .

My audit was made for the purpose of forming an opinion on the financial statements that collectivelycomprise the Fire Protection Sub- District No. 1 of West Baton Rouge Parish's basic financial statements.The introductory section and budgetary comparison schedules are presented for purposes of additionalanalysis and are not a required part of the basic financial statements. Such information has been subjectedto the auditing procedures applied in the audit of the basic financial statements and, in my opinion, isfairly presented in all material respects in relation to the basic financial statements taken as a whole. .

June 28,2006

W. Kathleen BeardCertified Public Accountant

10191 Bueche Rd. Erwinville, LA 70729(225) 627-4537FAX (225) 627-4584

Member:American Institute of CPAsSociety of Louisiana of CPAs

REPORT ON COMPLIANCE AND ON INTERNAL CONTROLOVER FINANCIAL REPORTING BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITHGOVERNMENT AUDITING STANDARDS

To Mr. Carroll P. Bourgeois, Executive in Charge andMembers of the Board of Commissioners

Fire Protection Sub - District No. 1 of West Baton Rouge Parish

I have audited the accompanying financial statements of the governmental activities of the Fire ProtectionSub - District No. 1 of West Baton Rouge Parish, as of and for the year ended December 31,2005 whichcollectively comprise the Fire Protection Sub - District No. 1 of West Baton Rouge Parish's basicfinancial statements, and have issued my report thereon dated June 28, 2006. I have conducted my auditin accordance with auditing standards generally accepted in the United States of America, and thestandards applicable to financial audits contained in Government Auditing Standards, issued by theComptroller General of the United States.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Fire Protection Sub - District No. 1 of WestBaton Rouge Parish's basic financial statements are free of material misstatement, I performed tests of itscompliance with certain provisions of laws, regulations, contracts and grants, noncompliance with whichcould 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 my audit and,accordingly, I do not express such an opinion. The results of my tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.

Internal Control Over Financial Reporting

In planning and performing my audit, I considered the Fire Protection Sub - District No. 1 of West BatonRouge Parish's internal control over financial reporting in order to determine my auditing procedures forthe purpose of expressing my opinion on the basic financial statements and not to provide assurance onthe internal control over financial reporting. My consideration of the internal control over financialreporting would not necessarily disclose all matters in the internal control over financial reporting thatmight be material weaknesses. A material weakness is a condition in which the design or operation ofone or more of the internal control components does not reduce to a relatively low level the risk thatmisstatements in amounts that would be material in relation to the basic financial statements being auditedmay occur and not be detected within a timely period by employees in the normal course of performing

their assigned functions. I noted no matters involving the internal control over financial reporting and itsoperation that I consider to be a material weakness.

This report is intended for the information of the Executive in charge and members of the Board ofCommissioners of Fire Protection Sub - District No. 1 of West Baton Rouge Parish and the LegislativeAuditor of the State of Louisiana and is not intended to be and should not be used by anyone other thanthese specified parties. Under Louisiana Revised Statute 24:513, this report is distributed by theLegislative Auditor as a public document.

U/. Ibttlu* &«U, GMJune 28, 2006

MANAGEMENTS DISCUSSION AND ANALYSISFIRE SUB - DISTIRCT #7 OF WEST BA TON ROUGE PARISH

FOR THE YEAR ENDED DECEMBER 31, 2005

The Management's Discussion and Analysis of the Fire Sub-District #1 of West Baton Rouge's(hereafter referred to as the District) financial performance presents a narrative overview and analysis ofthe District's financial activities for the year ended December 31, 2005. This document focuses on thecurrent year's activities, resulting changes, and currently known facts.

FINANCIAL HIGHLIGHTS

The District's net assets increased by $ 66,801

The general revenues of the District were $ 159,510

The program revenues of the District were $ 65,613

The total expenditures/expenses of the District were $ 158,322

OVERVIEW OF THE FINANCIAL STATEMENTS

This annual report consists of three parts: Management's Discussion and Analysis, Financial Statementsand Supplementary Information. The financial statements also include notes that provide more detail ofthe information included in the financial statements.

BASIC FINANCIAL STATEMENTS

The financial statements of the District report information about the District using accounting methodssimilar to those used by private sector companies. These statements provide financial information aboutthe activities of the District.

The Statement of Net Assets (p. 9) presents the current and long-term portions of assets and liabilitiesseparately.

The Statement of Activities (p. 10) presents information on how the District's assets changed as a resultof current year operations.

The following presents condensed financial information on the operations of the District:

Current Yearas of and

for theyear ended

December 31,2005

Prior Yearas of andfor the

year endedDecember 31,2004

Current assetsCapital assets

Total assets

Current liabilitiesNoncurrent liabilities

Total liabilities

Invested in capital assets, net of related debtUnrestricted

Total net assets

General revenues

Expenses

Program revenues

Change in net assets

$ 204,373683,476

887,849

52,413126,283

178,696

518,476190,677

$ 709.153

$ 159,510

158,322

1,188

65,613

$ 66.801

$ 334,569438,416

772,985

35,63395,000

130,633

343,416298,936

$ 642.352

$ 148,381

124.155

24,226

$ 24.226

CAPITAL ASSETS

The District's investment in capital assets as of December 31, 2005, amounts to $638,477 (net ofaccumulated depreciation). This investment in capital assets includes land and improvements, buildings,office, line and hydrants, firefighting equipment, vehicles and office furniture and equipment. The totaldecrease in the District's investment in capital assets for the current fiscal year was 55.9%.

Major capital asset events during the current fiscal year included the following:

The District purchased a new fire truck at a cost of $220,453 and firefighting equipment totaling$74,241.

DISTRICT'S CAPITAL ASSETS(net of accumulated depreciation)

LandBuildingsLine & HydrantsFirefighting EquipmentVehiclesOffice Furniture & Equipment

2005$ 92,000

235,1097,552

112,936235,303

577

$ 683T477

2004

$ 92,000242,232

7,88153,53741,546

1.220

$ 438.416

DEBT

The District's financial statements reflect a $30,000 current payment due on the Bond Debt covering thecost of Fire Station #3. $65,000 is still outstanding on the building as a long term liability.

The District's financial statements also reflect an $8,717 current payment due on a capital lease forfirefighting equipment. $61,283 is outstanding as a long term liability.

BUDGETARY HIGHLIGHTS

A comparison of the budget to actual operations is a required supplementary statement and is presentedin the accompanying supplementary information. The 2005 budget was revised twice in order to moreclosely reflect the actual expected revenues and expenditures. The first revision increased expendituresfor the purchase of a new fire truck, and the second revision was to reflect additional grant revenuereceived and the related expenditures. The District had budgeted to use $144,076 of accumulated surplusto purchase the new fire truck, however only $133,259 was required.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET

Management considered the following factors when setting the budget for the year ending December 31,2006:

No major expenditures are expected for 2006. The Fire Department continues to strive to keepthe District's equipment and maintenance in excellent condition to maintain their current firerating. Therefore, some equipment may be purchased throughout the year to ascertain this ratingwill remain the same.

Finances for the year 2006 are expected to remain approximately the same as 2005 excluding theeffects of the grants and the fire truck purchase. The 9.2% of sales tax should remain stable.

CONTACTING THE DISTRICT'S MANAGEMENT

This financial report is designed to provide a general overview of the District's finances and todemonstrate the District's accountability for the money it receives. If you have any questions about thisreport or requests for additional information may be directed to Henry Melancon, Fire Chief, Fire Sub-District #1 of West Baton Rouge Parish, Addis, LA 70710.

Basic Financial Statements

Fire Sub-District No. 1 of West Baton Rouge ParishStatement of Net Assets

December 31, 2005 and 2004

Primary GovernmentGovernmental Activities

ASSETS: 2005 2004

Cash and cash equivalents $179,613 $313,294Accounts receivable (net) 15,358 11,762Due from other governments 4,819 5,019Prepaids 4,583 4,495Capital assets:

Non-depreicable: 92,000 92,000Depreciable (net) 591,476 346,416

Total assets 887,849 772,985

LIABILITIES:Accounts payable 563 2,622Accrued interest payable 3,005 3,000Due to other governments 10,128 5,011Non-current liabilities:

Due in one year -Capital lease payable 8,717 0Certificates of indebtness 30,000 25,000

Due in more than one year -Capital lease payable 61,283 0Certificates of indebtness 65,000 95,000

Total liabilities 178,696 130,633

NET ASSETS:Invested in capital assets, net of related debt 518,476 343,416Unrestricted (deficit) 190,677 298,936

Total net assets $709,153 $642,352

The accompanying notes to the financial statements are an integral part of this statement

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Fire Sub-District No. 1 of West Baton RougeBalance Sheet

Governmental FundsDecember 31,2005 and 2004

General Debt Service 2005 2004Fund Fund Total Total

ASSETSCash and cash investments $178,081 $1,533 $179,613 $313,294Receivables -

Intergovernmental - sales tax 15,358 0 15,358 11,762Due from other funds 1,533 1,533 1,938Due from Town of Addis 4,819 0 4,819 5,019Prepaid expenses 4.583 0 4,583 4,495

Total Assets $204.373 $1,533 $205.905 $336.507

LIABILITIES AND FUND BALANCESAccounts payable and accrued liabilities $563 $0 $563 $2,622Due to other funds 0 1,533 1,533 1,938Due to Fire Sub-District No.2 of WBR 10,128 0 10,128 5,011Accrued interest payable 3.005 0 3.005 3,000

Total Liabilities 13,695 1,533 15,228 12,571

Fund Balances -Unreserved 190,677 0 190.677 323.936

Total Fund Balances 190,677 0 190.677 323.936

Total Liabilities and Fund Balances $204,373 $1,533 $205.905 $336,507

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

11

Fire Sub-District No. 1 of West Baton Rouge ParishReconciliation of the Balance Sheet to the Statement of Net Assets

Governmental FundsDecember 31,2005 and 2004

Fund Balances - total governmental funds

Amounts reported for governmental activities int the State of Net Assetsare different because:

Capital assets used in governmental activities are not financial resoucestherefore are not reported in governmental funds

Governmental capital assetsLess: accumulated depreciation

Long-term liabilites are not due and payable in the current year andtherefore are not reported in the governmental funds

Net Assets of Governmental Funds

2005$ 190,677

2004323,936

956880(273,404)

683,476

(165,000)

$709,153

662,186(223,770)

438,416

(120,000)

$642,352


12

Fire Sub-District No. 1 of West Baton Rouge ParishStatement of Revenues, Expenditures and Changes in Fund Balance

Governmental FundsYear ended December 31,2005 and 2004

REVENUES:Intergovernmental -Sales taxFire insurance rebateHomeland Security Grant

MiscellaneousInvestment income

Total revenues

EXPENDITURES:Current

Public safetyCapital outlayDebt service -PrincipalInterestTotal Debt Service

Total expenditures

Excess Revenues Over (Under) Expenditures

OTHER FINANCING SOURCES (USES):Proceeds from Capital LeaseTtransfers inTransfers (out)

Total Other Financing Sources (Uses)

Net Change in Fund Balances

FUND BALANCE:Beginning of Year

End of Year

GeneralFund

$149,9426,54164,963

6503,027

225,123

100,308294,694

03,0053,005

398,007

(172,884)

70,0000

(30,375)

39,625

(133,259)

323,936

$190,677

DebtServiceFund

$00000

0

00

25,0005,37530,375

30,375

(30,375)

030,375

0

30,375

0

0

$0

2005Total

$149,9426,54164,963

6503,027

225,123

100,308294,694

25,0008,38033,380

428,382

(203,259)

70,00030,375(30,375)

70,000

(133,259)

323,936

$190,677

2004Total

$138,3486,202

00

3,831

148,381

82,5139,488

25,0007,87532,875

124,876

24,755

033,437(33,437)

0

24,755

299,181

$323,936


13

Fire Sub-District No. 1 of West Baton Rouge ParishReconciliation of the Statement of Revenues, Expenditures and

Changes in Fund Balances to the Statement of ActivitiesGovernmental Funds

December 31,2005 and 2004

Net Change in Fund Balances - total governmental funds

Amounts reported for governmental activities in Statement of Net Assetsare different because:

2005$ (133,259)

2004$24,755

Governmental funds report capital outlays as expenditures. However, inthe Statement of Activities, the cost of those assets is depreciatedover their estimated useful lives:

Expenditures for capital assetsLess current year depreciation

Governmental funds report proceeds of financing by Capital Leaseas other financing sources. However, in the Statement of Activities,the prinical amount of the Capital Lease is reported as a liability

Payment of certificates of indebtedness is an expenditures in thegovernmental funds but the repayment reduces long-term liabilitiesin the Statement of Net Assets

Change in Net Assets of Governmental Funds

294,694(49,634)

245,060

(70,000)

25,000

$66,801

9,488(35,017)

(25,529)

25,000

$24,226


14

Fire Protection Sub - District No. 1 of West Baton Rouge ParishNotes to the Financial Statements

December 31,2005

Introduction

The Fire Protection Sub - District No. 1 of West Baton Rouge Parish was established by the parishgoverning authority, under the provisions of Louisiana Revised Statute 40:1506. The "Sub - District" wascreated to do and perform all acts necessary and proper for the purpose of providing fire protectionservice within the Addis sub - district. The Sub - District is governed by a chief executive officer and aboard of commissioners, in accordance with Louisiana Revised Statute 40:1506, which provides that if amunicipality is included within a sub-district, the governing body of the municipality shall be thegoverning body of the Sub - District. The members of the governing body serve without pay, includingper diem. The Sub - District is a voluntary fire department and has on part - time employee.

1. Summary of Significant Accounting Policies

A. Basis of Presentation

The accompanying financial statements of Fire Sub - District No. 1 of West Baton Rouge Parishhave been prepared in conformity with generally accepted accounting principles (GAAP) asapplied to governmental funds. The Governmental Accounting Standards Board (GASB) is theaccepted standard-setting body for establishing governmental accounting and financial reportingprinciples. The accompanying basic financial statements have been prepared in conformity withGASB Statement 34, Basic Financial Statements - and Management's Discussion and Analysis -for State and Local Governments, issued in June 1999.

B. Reporting Entity

The Fire Protection Sub - District does not possess all the corporate powers to make it a legallyseparate entity and the Town of Addis holds the Sub - District's corporate powers. For thisreason, the Sub - District is a component unit of the Town of Addis, the financial reporting entity.

The accompanying financial statements include the accounts of Fire Sub-District No. 1'soperations and do not present any information on the Town, the general government servicesprovided by that governmental unit, or the other governmental units that comprise the financialreporting entity.

GASB Statement No. 14, The Financial Reporting Entity, established criteria for determiningwhich component units should be considered part of a larger governmental reporting entity forfinancial reporting purposes. The basic criteria are as follows:

- the organization is legally separate (can sue and be sued in their own name)- the Sub-District holds the corporate powers of the organization- the Sub-District appoints a voting majority of the organization's board- the Sub-District is able to impose its will on the organization- the organization has the potential to impose a financial benefit/burden on the Sub-District- there is fiscal dependency by the organization on the Sub-District

15


December 31,2005

1. Summary of Significant Accounting Policies (Continued)

C. Fund Accounting

The accounts of Fire Sub - District No. 1 of West Baton Rouge Parish are organized on the basisof funds and account groups, each of which is considered to be a separate accounting entity. Theoperations of each fund or account group are summarized by providing a separate set of self-balancing accounts which include assets, liabilities, fund equity, revenues and expenses orexpenditures, as appropriate. Government resources are allocated to and accounted for inindividual funds based upon the purposes for which they are to be spent and the means by whichspending activities are controlled. The following funds and account groups are utilized by the Sub- District:

Governmental Funds Types:

The General Fund is the main operating fund of the Sub-District. This fund is used to account forfinancial resources except those required to be accounted for in another fund.

The Debt Service Fund is used to account for the accumulation of resources for, and the paymentof long-term debt principal and interest.

D. Measurement Focus/Basis of Accounting

Government - Wide Financial Statements

The government-wide financial statements include the statement of net assets and the statement ofactivities. These statements report financial information for the Sub-District as a whole and reflectthe economic resources measurement focus and the accrual basis of accounting. Revenues,exchange or exchange-like transactions are recognized when the exchange occurs (regardless ofwhen cash is received or disbursed). Revenues, expenses, gains, losses, assets and liabilitiesresulting from non-exchange transactions are recognized in accordance with the requirements ofGASB Statement No. 33, Accounting and Financial Reporting for Non-exchange Transactions.

Program Revenues - Program revenues reported in the Statement of Activities are deriveddirectly from Sub-District users as a fee for services, program revenues reduce the cost of thefunction to be financed from the Sub-District's general revenues.

16


December 31,2005


D. Measurement Focus/Basis of Accounting (Continued)

Fund Financial Statements

The amounts reflected in the Governmental Funds Balance Sheet and Statement of Revenues,Expenditures and Changes in Fund Balance are accounted for using a current financial resourcesmeasurement focus. With this measurement focus, only current assets and current liabilities aregenerally included on the balance sheet. The statement of revenue, expenditures and changes in fundbalances reports the sources (i.e. revenue and other financing sources) and uses (i.e. expenditures andother financing uses) of current financial resources. Reconciling statements are presented to reconcilefund financial statement's balance sheet to government-wide financial statement's net assets and toreconcile fund financial statement's revenues, expenditures and changes in fund balances togovernment-wide statement's of activities change in net assets.

E. Budgets

The Sub - District follows these procedures in establishing the budgetary data reflected in thesefinancial statements:

1. The Executive in charge prepares a proposed budget and submits same to the Board ofCommissioners prior to the beginning of each year.

2. The budget is adopted through passage of a resolution at a special meeting prior to thebeginning of the fiscal year.

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

4. Budgets for the General Fund are adopted on a basis consistent with generally acceptedaccounting principles (GAAP). Budgeted amounts are as originally adopted, or as amendedfrom time to time by the Board of Commissioners.

5. Expenditures may exceed budgeted amounts providing funds are available and subsequent tothe board's approval.

6. Formal budgetary integration is employed as a management control device. Budgeted amountsincluded in the accompanying financial statements include the original adopted budget and allsubsequent amendments. All budgetary appropriations lapse at the end of each fiscal year.

F. Encumbrances

Encumbrance accounting is not employed by the Sub - District.

17

Fire Sub - District No. 1 of West Baton Rouge ParishNotes to the Financial Statements

December 31,2005


G. Capital Assets

Capital assets are capitalized at historical cost. Donated assets are recorded as capital assets attheir estimated fair market value at the date of donation. The Sub-District maintains a thresholdlevel of $500 or more for capitalized capital assets.

Capital assets are recorded in the Statement of Net Assets and the Statement of Activities. Sincesurplus assets are sold for an immaterial amount when declared as no longer needed for publicpurposes, no salvage value is taken into consideration for depreciation purposes. All capital assetsother than land are depreciated using the straight line method over the following useful lives:

Furniture and office equipment 5 yearsFirefighting equipment 10 yearsVehicles 5-15 yearsBuildings 40 yearsLines and hydrants 25 years

H. Compensated Absences

Employees of the District work part - time, and therefore, the District does not have a formal leavepolicy.

2. Deposits and Investments

Deposits (Cash) - The Sub - District's deposits are stated at cost, which approximates market. Understate law, these deposits (or resulting bank balances) must be secured by federal deposit insurance orthe pledge of securities owned by the fiscal agent bank. The market value of the pledged securitiesplus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agentbank. These securities are held in the name of the pledging fiscal agent bank in a holding or custodialaccount that is mutually acceptable to both parties.

At December 31, 2005, the carrying amount (book balance) of the Sub - District's deposits (cash) was$178,081 and the bank balance was $248,959. Of the bank balance, $103,908 was covered by federaldepository insurance, $11,271 was covered by Securities Investor Protection Corporation (SIPC) andthe remaining balance of $88,432 was secured by deposit collateral consisting of pledged securitieshaving a market value of $350,000, held in the fiscal agent bank's name.

Even though the pledged securities are considered uncollateralized (Category 3) under the provisionsof GASB Statement 3, R.S. 39:1229 imposes a statutory requirement on the custodial bank toadvertise and sell the pledged securities within 10 days of being notified by the government that thefiscal agent has failed to pay deposited funds upon demand.

18


December 31,2005

2. Deposits and Investments

Investments -

Under state law, the District may invest in United States Bonds, treasury notes or certificates andcertificates of deposit. These are classified as investments if their original maturities exceed 90 days.At year end the Sub - District held investments in US Agency Securities comprised of FNMA bondshaving a fair value of $49,727.

3. Capital Assets

Capital assets and depreciation activity as and for the year ended December 31,2005 is as follows:

Governmental Activities

Non-depreciable: Land

Contsruction in progress

Total Non-depreciable

Depreciable:

Buildings

Lines & Hydrants

Firefighting equipment

Vehicles

Office furniture & equipment

Total Depreciable

Less: Accumulated depreciation

Buildings

Lines & Hydrants

Firefighting equipment

Vehicles

Office furniture & equipment

Total

Net Book Value

Governmental Activities Capital Assets, net

Balance1/1/2005

$ 92,000

0

92,000

284,980

8,209

145,544

119,097

12,357

570,186

42,747

32892,007

77,550

11,137

223,770

346,416

$438,416

Increases

$00

0

0

74,241

220,453

0

294,694

7.124

32814,841

26,698

643

49,634

BalanceDecreases 12/31/2005

$ - $ 92,0000 00 92,000

284,980

8,209

219,785

339,550

12,357

0 864,880

49,871

657

106,849

104,247

11.780

0 273.404

591,476

$683,476

Depreciation expense charged to functions of the primary government as follows:

Public safety - fire $ 49,634

49.634

19


December 31,2005

4. Long-Term Debt

Fire Protection District No. 1 of West Baton Rouge Parish and Fire Protection Sub-District No. 1 ofWest Baton Rouge Parish enter into a Local Services Agreement, effective April 1,1998 for thepublic purposes of providing for the financing, construction, operation and maintenance of the newfire station in the Sub-district and the ownership, operation and maintenance thereof by the Sub-District. The agreement stipulates that the District shall act as conduit issuer for and on behalf of theSub-District as necessary for incurring debt on behalf of and for the use and benefit of Sub-DistrictNo.l under LRS 40:1506. The agreement further states that Sub-District agrees to make all paymentsrequired to pay principal of and interest on the certificate as they respectively fall due from its portionof the District's parish-wide 1/2 of 1% sales tax above statutory, necessary and usual charges of theSub-District in each of the fiscal years during which the Certificate is outstanding.

On May 27,1998 the governing board of Fire Protection Sub-District No. 1 approved a Resolutionauthorizing the incurring of debt and the issuance of a Certificate of Indebtedness, Series 1998 A ofWest Baton Rouge Parish Fire Protection District No. 1, for the use and benefit of Fire ProtectionSub-District No. 1 of West Baton Rouge Parish for the purpose of constructing and purchasing a firestation. This Certificate is issued as a single, fully registered certificate in the principal amount of$250,000 with an interest rate of 5% per annum, and is subject to prepayment prior to maturity, inwhole or in part, at a price of par and accrued interest on July 1, 2000 and any business day thereafter,upon thirty days notice. This certificate is secured by and payable as to principal and interest from anirrevocable pledge and dedication of the pledged revenues of the Sub- District. Debt Servicerequirements to maturity are as follows:

December 30, Principal Interest Total Paid2006 $ 30,000 $ 4,750 $ 34,7502007 30,000 3,250 33,2502008 35,000 1/750 36.750

Totals $ 95,000 $ 9,750 $104,750

On January 19,2005 the Sub-District entered into an agreement with Hibernia National Bank for the leasepurchase of a fire truck. The amount financed was $70,000 at a rate of 4.5454% interest for a term of 6years. Annual payments are due January 20th. Minimum lease payments to maturity are as follows:

Year Principal Interest Total2006200720082009201020112012

$ 70.000 $ 13.292 $ 83.292

20

$ 8,717 $

9,113

9,5289,961

10,41310,88711,382

3,182 $

2,7862,371

1,938

1,486

1,012517

11,89911,89911,89911,89911,89911,89911,899


December 31,20055. Economic Dependence

Sales tax revenues are collected by the West Baton Rouge Parish Sales Tax Department for the WestBaton Rouge Fire Protection District No. 1 (the District). The Fire Sub - District No. 1 of West BatonRouge Parish participates with other sub - districts in the District sales tax revenue, receiving 9.2% ofthe District's distributable portion. Sales tax revenues comprise 67% of total revenue received by theSub - District in 2005

6. Agreement with the Town of Addis

The Fire Sub - District entered into a local services agreement with the Town of Addis in January1992 to provide fire protection within the Town. Under the terms of the agreement, the Town hasagreed to do the following:

1. Lease all vehicles, equipment, and supplies belonging to the Town and for the use of the AddisVolunteer Fire Department to the Sub - District, provided that the Sub - District shall bear the costof insurance coverage on all vehicles, equipment and supplies, said coverage to be approved bythe Town with certificates of such insurance to be presented.

2. Permit the Sub - District to use the Town's existing fire stations and Old Town Hall during the termof the agreement, provided that the Sub - District shall provide insurance coverage thereon at leastequal to the amount which the Town has in force on the date of the agreement and further providedthat the Town is listed as an additional insured on the policy. However, insurance costs as to Station#2 shall be fifty (50%) percent to Town and Fifty (50%) percent to Sub District.

7. Risk Management

The Sub-District purchases commercial insurance to protect against risk of loss in these areas:workers' compensation liability, general liability, law enforcement liability, public officials' errorsand omissions, automobile liability and physical damage coverage and property fire coverage. Therehave been no significant reductions in coverage from the prior year and settlements have not exceededcoverage in the past three years.

21

Required Supplementary Information

Fire Sub-District No. 1 of West Baton Rouge Parish

Budgetary Comparison Schedule

General Fund

For the Year Ended December 31, 2005

Actual

REVENUES

Sales tax

Fire insurance rebate

Homeland Security Grant

Forestry Grant

Miscellaneous (Task Force)

Investment income

Total revenues

EXPENDITURES

Public safety - Fire Protection Services

Salaries

Fringe benefits - Fica

Utilities - Station #1



Telephone

Computer cable

Expense allowance

Gas and oil

Office supplies

Postage

Printing

Repairs to equipment

Repairs to buildings

Dues and subscriptions

Tools and supplies

Miscellaneous

Insurance and bonds

Uniforms

Training

Computer upgrade

First aid supplies

Legal services

Accounting services

Official journal

Cleaning

Computer maintenance

Equipment maintenance

Radio repairs

Dispatcher

Fireman

Capital outlay

Debt Service - Interest Expense

Total expenditures

Budaeted Amounts

Original Revision #1

$142,000

6,500

0

0

0

3,000

151,500

3,200

340

2,000

900

5,000

2,000

700

1,000

2,000

500

300

150

6,000

1,000

500

4,500

2,000

19,000

1,500

1,000

1,000

1,500

1,000

2,000

1,000

200

1,200

600

250

8,000

17,800

10,000

0

98,140

$142,000

6,500

0

0

650

3,000

152,150

3,200

340

1,500

900

6,000

2,000

500

1,000

2,000

500

300

150

5,000

1,000

1,000

4,500

4,500

19,000

2,200

1,500

1,000

1,000

1,500

3,700

1,000

200

1,200

1,100

250

8,000

17,800

160,000

0

253,840

Final

$145,000

6,500

64,963

5,086

650

3,000

225,199

3,500

340

1,500

1,100

6,000

2,000

500

1,000

2,500

500

300

150

6,500

500

1,000

9,500

5,500

20,500

2,700

1,500

0

1,000

1,500

3,700

1,500

0

1,200

1,100

250

6,000

17,800

235,135

0

336,275

Amounts Variance with

Budgetary Final Budget

Basis Over (Under)

$149,942

6,541

64,963

0

650

3,027

225,123

3,200

245

798

1,486

5,098

1,778

357

800

2,208

198

260

0

6,697

87

978

8,470

6,002

19,940

2,261

1,497

0

432

438

3,700

1,397

0

1,100

1,169

0

9,078

20,637

294,694

3,005

398,007

$4,942

41

0

(5,086)

0

27

(76)

300

95

702

(386)

902

222

143

200

292

302

40

150

(197)

413

22

1,030

(502)

560

439

3

0

568

1,063

0

103

0

100

(69)

250

(3,078)

(2,837)

(59,559)

(3,005)

(61,732)

2004

Actual

Amounts

$138,348

6,202

0

0

0

3,831

148.381

3.000

230

2,675

980

3,243

1,717

605

0

1,513

803

404

0

7,561

1,025

362

4,401

5,097

17,169

54

899

147

143

1,444

2,000

1,000

0

2.108

577

199

4,495

18,664

9,488

0

92,001

22

Fire Sub-District No, 1 of West Baton Rouge Parish

Budgetary Comparison Schedule

General Fund

For the Year Ended December 31,2005

Excess (Deficiency) of Revenues

Over Expenditures

OTHER FINANCING SOURCES (USES):

Proceeds from Capital Lease

Transfers (out) - Debt Service

Transfers (out) - Special Fund

Total Other Financing Sources (Uses)

Excess (Deficiency) of Revenues and Other

Financing Sources over Expenditures

and Other Financing (Uses)

Fund Balance Allocation

Excess (Deficiency) of Revenues

Over Expenditures

Actual

Amounts Variance with

Budaeted Amounts

Original

53,360

0

(33,000)

(20,360)

(53,360)

Revision #1

(101,690)

0

(33,000)

(20,360)

(53.360)

Final

(111,076)

0

(33,000)

0

(33,000)

Budgetary

Basis

(172,884)

70,000

(30,375)

0

39,625

Final Budget

Over (Under)

(61,808)

70,000

2,625

0

72,625

2004

Actual

Amounts

56,380

0

(33,437)

0

(33,437)

0

0

$0

(155,050)

155,050

$0

(144,076)

144,076

$0

(133,259)

133,259

$0

10,817

(10,817)

$0

22,943

0

$22,943

23

Fire Protection Sub-District No. 1 of West Baton Rouge ParishSchedule of Findings

For the Year Ending December 31, 2005

A. Summary of Audit Results

1. The auditor's report expresses an unqualified opinion on the basic financial statements of the FireProtection Sub-District No. 1 of West Baton Rouge Parish.

2. No reportable conditions were disclosed during the audit of the basic financial statements in thereport on compliance and on internal control over financial reporting based on an audit offinancial statements performed in accordance with Government Auditing Standards.

3. No instances of noncompliance material to the basic financial statements of the Fire Protection Sub-District No. 1 of West Baton Rouge Parish were disclosed during the audit.

B. Findings - Financial Statements Audit

There were no findings.

C. Prior Year Findings

There were no findings.

24

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