RECREATION DISTRICT NO. 12 OF ST. TAMMANY PARISH COMPONENT by tex60740

VIEWS: 56 PAGES: 31

									RECREATION DISTRICT NO. 12 OF ST. TAMMANY PARISH
    COMPONENT UNIT FINANCIAL STATEMENTS
       AND SUPPLEMENTARY INFORMATION
           DECEMBER 31, 2006 AND 2005




    Under provisions of state law, this report is a public
    document, Acopy of the report has been submitted to
    the entity and other appropriate public officials. The
    report is available for public inspection at the Baton
    Rouge office of the Legislative Auditor and, where
    appropriate, at the office of the parish clerk of court.

        Release Datefa—^ fo* 0 /
                                     TABLE OF CONTENTS

                                                                           Page

INDEPENDENT ACCOUNTANTS' REPORT                                             1

MANAGEMENT'S DISCUSSION AND ANALYSIS                                        2

GOVERNMENT-WIDE FINANCIAL STATEMENTS

   Statements of Net Assets                                                 4

   Statements of Activities                                                 5

FUND FINANCIAL STATEMENTS

   Combined Balance Sheets - All Fund Types                                 6

   Reconciliations of the Governmental Fund Combined Balance Sheets
      to the Statements of Net Assets                                       7

   Combined Statements of Revenues, Expenditures, and Changes in
      Fund Balances - All Governmental Fund Types                           8

   Reconciliations of the Combined Statements of Revenues, Expenditures,
      and Changes in Fund Balances of Governmental Fund to
      the Statements of Activities                                          9


NOTES TO FINANCIAL STATEMENTS                                               10

SUPPLEMENTAL INFORMATION

   Statements of Revenues, Expenditures, and Changes in Fund Balance
       Budget to Actual (Budgetary Basis) - General Fund                   20

   Schedule of Compensation Paid Elected Officials                          22

OTHER INDEPENDENT AUDITORS' REPORT

   Independent Accountants' Report on Applying Agreed-Upon
       Procedures for Compliance with Laws and Regulations                  23

CURRENT YEAR FINDINGS & MANAGEMENT'S
     CORRECTIVE ACTION PLAN                                                 26

PRIOR YEAR FINDINGS & MANAGEMENT'S
      CORRECTIVE ACTION PLAN                                                27
                        SILVA a ASSOCIATES, LLC
                                                 Certified Public Accountants

Craig A. Silva, CPA
Brent A. Silva, CPA
Tom A. Gurtner, CPA




                                          INDEPENDENT ACCOUNTANTS' REPORT


              Board of Commissioners
              Recreation District No. 12 of St. Tammany Parish
              Folsom, Louisiana

              We have reviewed the accompanying financial statements of the governmental activities of Recreation
              District No. 12 of St. Tammany Parish, as of and for the years ended December 31, 2006 and 2005, which
              collectively comprise the District's basic financial statements as listed in the table of contents, in
              accordance with Statements on Standards for Accounting and Review Services issued by the American
              Institute of Certified Public Accountants. All information included in these financial statements is the
              representation of the management of Recreation District No. 12 of St. Tammany Parish.

              A review consists principally of inquiries of Recreation District No. 12 of St. Tammany Parish's personnel
              and analytical procedures applied to financial data. It is substantially less in scope than an audit in
              accordance with auditing standards generally accepted in the United States of America, the objective of
              which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we
              do not express such an opinion.

              Based on our review, we are not aware of any material modifications that should be made to the
              accompanying financial statements in order for them to be in conformity with accounting principals
              generally accepted in the United States of America.

              The management's discussion and analysis and budgetary comparison information on pages 2 through 3
              and 20, are not a required part of the basic financial statements but are supplementary information required
              by the Governmental Accounting Standards Board. Such information has not been subjected to the inquiry
              and analytical procedures applied in the review of the basic financial statements, but was compiled from
              information that is the representation of management, without audit or review. Accordingly, we do not
              express an opinion or any other form of assurance on the supplementary information.

              In accordance with the Louisiana Government Audit Guide and the provisions of state law, we have issued
              a report dated May 14, 2007, on the results of our agreed-upon procedures for compliance with laws and
              regulations.




              May 14, 2007




1605 Airline Dr., Suite 104                                                                                      4331 Iberville St.
    Metairie, LA 70001                                                                                        Mandeville, LA 70471
  Office: (504) 833-2436                                                                                      Office: (985) 626-8299
   Fax: (504) 833-9101                              www.silvaandassociates.com                                 Fax: (985) 626-9767
Tim Bartholomew, Chairman
    AntoineBrumfield                                                                        ^
       FredO^ald                                                                                                       "Men




                   Management's Discussion and Analysis (MD&A) is a required element of the reporting model
          adopted by the Governmental Accounting Standards Board in their Statement No. 34. Its purpose is to
          provide an overview of the financial activities of the District's office based on currently known facts and
          decisions of conditions. Please read it in conjunction with the District's financial statements, which begin
          on page 4.

                     The basic financial statements include government-wide and government fund statements. The
          government-wide Statement of Net Assets and Statement of Activities present information for all the
          activities of the District's office, from an economic resources measurement, focus using the accrual basis of
          accounting. Primarily for our office the difference between these statements and Governmental funds
          statements is that assets are capitalized and depreciated over their estimated useful life versus expensed in
          the Governmental funds statements. The Balance Sheet - Governmental Funds details the assets and
          liabilities of the governmental funds while the Reconciliation of the Government Fund Balance Sheet to the
          Statement of Net Assets reflects the differences from the amounts reported in the Statement of Net Assets.
          The Statement of Revenues, Expenditures and Changes in Fund Balance reflects the current year receipt
          and disbursement of funds and the Reconciliation statement reports the differences in the changes in fund
          balance to the change in net assets of the Government activities. The differences between the adopted
          budget and the actual activities are reflected in the Budgetary Comparison Schedule - General Fund.

                 The District has been determined to be a component unit of St. Tammany Parish.                    The
          accompanying financial statements only present information in the funds maintained by the District.

          STATEMENT OF NET ASSETS AND STATEMENT OF ACTIVITIES

                    Our analysis of the funds maintained by the District as a whole begins on page 3. The Statement
          of Net Assets and Statement of Activities report information about the funds maintained by the District as a
          whole and about its activities in a way which helps answer one of the most important questions asked about
          the District's finances, "Is the District, as a whole, better off or worse off as a result of the year's
          activities?" These statements include all assets and liabilities using the accrual basis of accounting used by
          most private sector companies. Accrual of the current year's revenues and expenses are taken into account
          regardless of when the cash was received or paid.

                    These two statements report the District's net assets and the changes in them. These net assets,
          the difference between the assets and the liabilities, is one way to measure the District's financial position
          of financial health and over time, increases or decreases in net assets are one indicator of whether its
          financial health is improving or deteriorating.

                   We record the funds maintained by the District as governmental activities in the Statement of Net
          Assets and Statement of Activities.

                   All of the expenses paid from the funds maintained are reported here as governmental activities
          and consist primarily of salaries, insurance, office expenses, interest, and sports related costs. Ad valorem
          taxes and fees from sporting events finance most of the activities of the District.




                                Fendlason Community Center • Recreation District #12
                                         13296 Highway 40 • P.O. Box 1211 • Folsom, Louisiana 70437
                                      (985) 796-5045 • Fax (985) 796-5076 • Email: rdi2@bellsouth.net
  GOVERNMENT-WIDE FINANCIAL ANALYSIS

           As noted earlier, net assets may serve over time as a usefijl indicator of an entity's financial
  position. The District's total net assets change from a year ago increased from $546,685 to $630,066.
  This was because ad valorem taxes and net culture and recreation revenue exceeded budget.

           The District's office at December 31} 2006 and 2005 had $169,940 and $135,403 in cash and cash
  equivalents, $243,883 and $219,592 in funds receivable from property taxes or revenue sharing, and net
  capital assets of $906,739 and $914,949, respectively.      Total assets for the period increased from
  $1,269,944 as of December 31, 2005 to $1,311,562. The District had $665,000 and $705,000 in bonds
  payable outstanding as of December 31, 2006 and 2005, respectively.

           Total revenue for the District's office for 2006 and 2005 was $381,855 and $328,566,
  respectively. This was slightly more because Ad Valorem Tax revenue increased in 2005, and concession
  sales and sporting events revenue exceeded budget.

         Expenditures, excluding depreciation expense, were $256,625 and $233,950 for the years ended
  December 31, 2006 and 2005, respectively.

  GENERAL FUND BUDGETARY HIGHLIGHTS

           Favorable variances in charges for services were caused by an increase in sporting events at the
  Park. Unfavorable variances in expenses were caused by the increase sporting events. These increases
  were not anticipated by the Board for 2006. The Board amended the budget during the year to account for
  these changes.

  CAPITAL ASSETS

         The District completed construction of a new playground, purchased a new batting cage and a new
  lawn mower during 2006.

  ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS

           The District considered many factors when setting the operating budget for its general fund for the
  year ended December 31, 2007. As very minimal changes are expected in the next year, anticipated
  revenues will be approximately $169,060, while anticipated expenditures will be approximately 169,060.
  Therefore, the total governmental fund balance is expected to remain constant from prior year.

  CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

            This financial report is designed to provide our citizens and taxpayers with a general overview for
  the funds maintained by the Recreation District #12 of St. Tammany Parish and to show the accountability
  for the money it receives. If you have any questions or need additional information, contact the District's
  office at PO Box 1211, Folsom, Louisiana 70437.




V Jennifer Goings
  Director
                   RECREATION DISTRICT NO. 12 OF ST. TAMMANY PARISH
                             STATEMENTS OF NET ASSETS
                              DECEMBER 31, 2006 AND 2005


                                                                         Governmental Activities
                                                                        2006               2005

                                                    ASSETS

Cash and cash equivalents                                                 169,940            135,403
Due from other governmental agencies                                      234,883            219,592
Capital assets, net                                                       906,739            914,949

  TOTAL ASSETS                                                          1,311,562          1,269,944

                                                  LIABILITIES

Current Liabilites
 Accrued expenses                                                           3,210              3,394
 Deposits                                                                   1,202                  -
 Pension payable                                                            7,320              6,350
                                                                           11,732               ,4
                                                                                               974
Debt
 Due within one year                                                        407
                                                                           4,5                43,750
 Due in more than one year                                                625,708             6,6
                                                                                             6975
                                                                          669,765            713,515

  TOTAL LIABILITIES                                                       681,497            723,259

                                                  NET ASSETS

Invested in capital assets, net of related debt                           236,974            201,434
Restricted for:
  Capital improvements
  Debt service                                                            179,630            171,841
Unrestricted                                                              213,461            173,410

  TOTAL NET ASSETS                                                 $      630,065     !
                                                                                      5      546,685




                       See independent accountants' report and accompanying notes.
                                                    4
                       RECREATION DISTRICT NO. 12 OF ST. TAMMANY PARISH
                      STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS
                         FOR THE YEAR ENDED DECEMBER 31, 2006 AND 2005

                                                          2006
                                                                   PROGRAM REVENUES
                                                                   CHARGES
                                                                     FOR     CAPITAL        NET REVENUES
     FUNCTIONS/PROGRAMS                   EXPENSES                 SERVICES   GRANTS         (EXPENSES)

Governmental Activities
   Culture and recreation                $      298,474                   106,967    29,014 $     (162,493)

    Total governmental activities                                                                 (162,493)

                                        General Revenues
                                         Ad valorem taxes                                          225,638
                                          State revenue sharing                                      9,111
                                         Other                                                       3,559
                                         Interest                                                    7,565

                                             Total general revenue                                 245,873

                                        Change in net assets                                        83,380

                                        Net assets -- beginning of year                            546,685

                                        Net assets - end of year                                   630,065

                                                         2005
                                                                   PROGRAM REVENUES
                                                                   CHARGES
                                                                     FOR     CAPITAL        NET REVENUES
     FUNCTIONS/PROGRAMS                   EXPENSES                 SERVICES  GRANTS          (EXPENSES)

Governmental Activities
   Culture and recreation                      275,798                    88,745                  (187,053)

   Total governmental activities                                                                  (187,053)

                                        General Revenues
                                         Ad valorem taxes                                          215,004
                                         State revenue sharing                                       8,799
                                         Other                                                      10,876
                                         Interest                                                    5,142

                                             Total general revenue                                 239,821

                                        Change in net assets                                        52,768

                                        Net assets — beginning of year                             493,917

                                        Net assets ~ end of year                                   546,685


                            See independent accountants' report and accompanying notes
                                                         5
                          RECREATION DISTRICT NO. 12 OF ST. TAMMANY PARISH
                                    COMBINED BALANCE SHEETS
                                          ALL FUND TYPES
                                         DECEMBER 31, 2006

                                  With Comparative Totals as of December 31.2005

                                                          Governmental Fund Types                      Total
                                                                                                    Governmental
                                                                     Debt          Capital             Funds
                                                     General        Service        Projects       2006       2005
ASSETS
  Cash and cash equivalents                      $      9,040   $        -     $              $     9,040   $    13,265
  Investments                                          61,295         99,605                      160,900       122,138
  Ad valorem taxes receivable, net                    145,500         80,025                      225,525       204,882
  State revenue sharing receivable                      8,858                                       8,858         8,629
  Other receivables                                       500                                         500         6,080

                             TOTAL ASSETS        $ 225,193      $ 179,630      $              $ 404,823     $ 354,995

LIABILITIES AND FUND BALANCE
  Liabilities
    Accrued expenses                             $      3,210   $        -     $              $     3,210   $     3,394
    Deposits                                            1,202                                       1,202
    Pension payable                                     7,320                                       7,320         6,350

   Total liabilities                                   11,732                                      11,732         9,744


 Fund Balance
   Reserved for debt service                                        179,630                       179,630       171,841
   Reserve for capital projects                         6,307                                       6,307
   Unreserved                                         207,154                                     207,154       173,410

   Total fund balances                                213,461        179,630                      393,091       345,251

                                                 $ 225,193      $ 179,630      $              $ 404,823     $ 354,995




                              See independent accountants' report and accompanying notes
                                                           6
                   RECREATION DISTRICT NO. 12 OF ST. TAMMANY PARISH
                  RECONCILIATIONS OF GOVERNMENTAL FUND COMBINED
                   BALANCE SHEETS TO THE STATEMENTS OF NET ASSETS
                              DECEMBER 31, 2006 AND 2005


                                                                            2006             2005

Fund balances - Total governmental fund                                 $     393,091    $    345,251

  Amounts reported for governmental activities in the
   statement of net assets are different because:

  Capital assets used in governmental activities are not
   financial resources and therefore not reported in the funds
      Governmental capital assets                                           1,167,919        1,134,280
      Less accumulated depreciation                                           261,180         219,331
                                                                              906,739          914,949

  Debt used in governmental activities are not financial uses
   and therefore are not reported in the funds
     Debt related to capital assets                                          (669,765)       (713,515)

Net assets of governmental activities                                   $     630,065    $    546,685




                       See independent accountants' report and accompanying notes.
                                                     7
                          RECREATION DISTRICT NO. 12 OF ST. TAMMANY PARISH
                         COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
                       CHANGES IN FUND BALANCES-ALL GOVERNMENTAL FUND TYPES
                                    FOR THE YEAR DECEMBER 31, 2006

                             With Comparative Totals for the Year Ended December 31, 2005

                                                               Governmental Fund Types                          Total
                                                                                                             Governmental
                                                                           Debt           Capital               Funds
REVENUES                                                  General         Service         Projects         2006         2005
  Ad valorem taxes                                    $    145,573    $     80,065    $         -     !K   225,638   $ 215,004
  State revenue sharing                                      9,111             -                             9,111       8,799
  Capital grants                                            29,014             .                            29,014          -
  Interest income                                            2,315           5,250                           7,565       5,142
  Culture and recreation                                   106,967             -                           106,967      88,745
  Other income                                               3,559             -                             3,559      10,876
                                                           296,539          85,315                         381,854     328,566
EXPENDITURES
 Recreation
   Salaries                                                 62,492            _                             62,492      59,582
   Retirement contribution                                   3,478            -                              3,478       2,440
   Concessions                                              26,972            -                             26,972      22,553
   Insurance                                                13,951            -                             13,951      16,708
  Utilities                                                 12,277            -                             12,277      10,637
  Field maintenance                                          2,068            -                              2,068       4,731
  Office expenditures                                       13,224            -                             13,224      13,766
   Other                                                    13,921            400                           14,321       7,449
  Repairs and maintenance                                   12,095            -                             12,095       7,522
  Payroll taxes                                              7,172            -                              7,172       4,878
  Pension contribution                                       7,320            -                              7,320       6,350
  Contract labor                                             2,660            -                              2,660         300
  Legal and professional                                     6,884            -                              6,884       5,340
  Sports                                                    36,380            -                             36,380      34,387
  Rent                                                         622            -                                622         392
 Debt Service
   Principal                                                   -           40,000                           40,000      35,000
   Interest and finance charge                                 -           34,170                           34,170      36,451
 Capital Lease
   Principal                                                 3,750             -                             3,750       3,467
   Interest                                                    539             -                               539         822
 Capital outlay                                                -                            33,639          33,639       3,750
                                                           225,805         74,570           33,639         334,014     276,525
EXCESS (DEFICIENCY) OF REVENUES
 OVER EXPENDITURES                                          70,734          10,745         (33,639)         47,840      52,041

Other Financing Sources (Uses)
  Intergovernmental transfers                              (30,683)         (2,956)         33,639             .
                                                           (30,683)         (2,956)         33,639             -           -
EXCESS(DEFICIENCY) OF REVENUES OVER
 EXPENDITURES AND OTHER SOURCES(USES)                       40,051          7,789                           47,840      52,041
FUND BALANCE
  Beginning of year                                        173,410        171,841                          345,251     293,210
  End of year                                         $    213,461    $ 179,630       $        -      3;   393,091   $ 345,251


                                 See independent accountants' report and accompanying notes.
                     RECREATION DISTRICT NO. 12 OF ST. TAMMANY PARISH
                RECONCILIATIONS OF THE COMBINED STATEMENTS OF REVENUES,
               EXPENDITURES, AND CHANGES IN FUND BALANCE OF GOVERNMENTAL
                             FUND TO STATEMENTS OF ACTIVITIES
                       FOR THE YEAR ENDED DECEMBER 31, 2006 AND 2005


                                                                                               2006           2005

Net changes in fond balances - Total governmental fund                                     $   47,840     $    52,041

     Amounts reported for governmental activities in the statement
      of net assets are different because:

    Governmental funds report capital outlays as expenditures. In the
    statement of activities, the cost of those assets is allocated over
    the estimated useful lives as depreciation expense. This is the
    amount of depreciation over the capital expenditures.                                       (8,210)       (37,740)

    Bond and capital lease agreements provide current financial
    recources to government funds, but issuing debt increases long-
    term liabilites in the statement of net assets. Repayment of principal
    is an expenditure in the governmental funds, but the repayment reduces
    long-term liabilities in the statement of net assets. This is the amount
    by which (proceeds) exceeded repayments
           General obligation bonds                                                            40,000         35,000
           Capital lease agreement                                                              3,750          3,467

Changes in net assets of governmental activities                                           $   83,380     $   52,768




                             See independent accountants' report and accompanying notes.
                                                          9
                     RECREATION DISTRICT #12 OF ST. TAMMANY PARISH

                                NOTES TO FINANCIAL STATEMENTS


NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Recreation District No. 12 of St. Tammany Parish (the "District") was established by Louisiana Revised
Statutes 33:4564 and Police Jury Ordinance PSS No. 92-1596 on May 11, 1992. The District's boundaries
are within the Second Ward of the Parish of St. Tammany. The District is governed by a Board of
Commissioners consisting of five resident property taxpayers, as provided by Louisiana Revised Statutes
33:4564. The St. Tammany Parish Council appoints five commissioners. Each commissioner serves a
term of five years.

This Recreation district was created for the purpose of providing facilities for youth and adult sports
programs to the residents in the Folsom, Louisiana area.

The financial statements of the Recreation District No. 12 of St. Tammany Parish have been prepared in
conformity with U.S. generally accepted accounting principles (GAAP) as applied to governmental units.
The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for
establishing governmental accounting and financial reporting principles. The more significant of the
government's accounting principles are described below.

Reporting Entity

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

Governmental Accounting Standards Board Statement No. 14 established criteria for determining which
component units should be considered part of the St. Tammany Parish Council for financial reporting
purposes. The basic criterion for including a potential component unit with the reporting entity is financial
accountability.

The accompanying financial statements present information only on the funds maintained by the District
and do not present information on the Council, the general government services provided by that
governmental unit, or the governmental units that comprise the financial reporting entity.

Basis of Presentation

Basic Financial Statements - Government-Wide Statements

The District's basic financial statements include both government-wide (reporting the District as a whole)
and fund financial statements (reporting the District's major funds). Both the government-wide and fund
financial statements categorize primary activities as either governmental or business type. There were no
activities of the District categorized as a business type activity.

In the government-wide Statement of Net Assets, the governmental activity column (a) is presented on a
consolidated basis by column, (b) and is reported on a full accrual, economic resource basis.

The government-wide Statement of Activities reports both the gross and net cost of the District's function.
The Statement of Activities reduces gross expenses by related program revenues, operating and capital
grants. Program revenues must be directly associated with the function. Operating grants include
operating-specific and discretionary (either operating or capital) grants while capital grants reflects capital-
specific grants.


                                                      10
                     RECREATION DISTRICT #12 OF ST. TAMMANY PARISH

                                NOTES TO FINANCIAL STATEMENTS


NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)

The net costs (by function) are normally covered by general revenue (interest and investment earnings,
etc.)-

The District does not allocate indirect costs.

The government-wide focus is more on the sustainability of the District as an entity and the change in the
District's net assets resulting from the current year's activities.

Basic Financial Statements - Fund Accounting

The District uses fund accounting to report on its financial position and the results of its operations. Fund
accounting is designed to demonstrate legal compliance and to aid financial management by segregating
transactions related to certain government functions or activities.

A fund is a separate accounting entity with a self-balancing set of accounts.

Funds are ordered into three major categories: governmental, proprietary, and fiduciary. Funds within each
major category are grouped by fund type in the financial statements. The funds used by the District are as
follows:

         Governmental Fund Types

         Governmental fund types are those through which general governmental functions of the District
         are financed. The acquisition, use and balances of the District's expendable financial resources
         and the related liabilities are accounted for through governmental funds. The following are the
         District's governmental fund types:

                  General Fund

                  The general fund is the main operating fund of the District. This fund is used to account
                  for all financial resources not accounted for in other funds.

                  Debt Service Fund

                  The debt service fund accounts for transactions relating to resources retained and used for
                  the payment of principal and interest on those long-term obligations.

                  Capital Protects Fund

                  The capital projects fund accounts for financial resources received and used for the
                  acquisition, construction, or improvement of capital facilities not reported in other
                  governmental funds.




                                                     11
                      RECREATION DISTRICT #12 OF ST. TAMMANY PARISH

                                NOTES TO FINANCIAL STATEMENTS


NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)

Revenues - Exchange and Non-Exchange Transactions

Revenue resulting from exchange transactions, in which each party gives and receives essentially equal
value, is recorded on the accrual basis when the exchange takes place. On a modified accural basis,
revenue is recorded in the fiscal year in which the resources are measurable and become available.
Available means that the resources will be collected within the current fiscal year or are expected to be
collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the District,
available means expected to be received within thirty-one days of fiscal year-end. Under the modified
accrual basis, only interest is considered to be both measurable and available at fiscal year-end.

Nonexchange transactions, in which the District receives value without directly giving value in return,
includes grants and donations. On an accrual basis, revenue from grants and donations is recognized in the
fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing
requirements, which specify the year when the resources are required to be used or the fiscal year when use
is first permitted, matching requirements, in which the District must provide local resources to be used for a
specific purpose, and expenditure requirements, in which the resources are provide to the District on a
reimbursement basis. On a modified accural basis, revenue from nonexchange transactions must be
available before it can be recognized.

Expenses/Expenditures

On an accrual basis of accounting, expenses are recognized at the time they are incurred. The measurement
focus of governmental fund accounting is on decreases in net financial resources/(expenditures) rather than
expenses. Expenditures are generally recognized in the accounting period in which the related fund
liability is incurred, if measurable.

Basis of Accounting

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.
All governmental funds are accounted for using a current financial resources measurement focus. With this
measurement focus only current assets and current liabilities generally are included on the balance sheet.
The operating statement of the fund presents increases (i.e., revenues and other sources) and decreases (i.e.,
expenditures and other uses) in net current assets.

All governmental fund types and agency funds use the modified accrual basis of accounting. Under the
modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become both measurable and available). "Measurable" means the amount of the transaction can be
determined and "available" means collectible within the current period or soon enough thereafter to be used
to pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred.
Principal and interest on general long-term debt are recorded as fund liabilities when due.

Those revenues of the District susceptible to accrual are ad valorem taxes, state revenue sharing, grants and
interest. Substantially all other revenues are recorded when received.

Budget and Budgetary Accounting

Formal budgetary accounting is employed as a management control device during the year for the general
fund. Formal budgetary accounting is not employed for the debt service fund because effective control is
alternatively achieved through the indenture provisions of the Certificate.

The budget is adopted for the general fund on a basis consistent with U.S. generally accepted accounting
principles (GAAP). All appropriations, which are not expended, lapse at year-end.

                                                      12
                     RECREATION DISTRICT #12 OF ST. TAMMANY PARISH

                                 NOTES TO FINANCIAL STATEMENTS


NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)

Encumbrances

Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not
employed by the District.

Cash and Cash Equivalents

Cash includes amounts in demand deposits and certificates of deposits, if any.

Louisiana revised statutes authorize the District to invest in (1) United States bonds, treasury notes or
certificates, or time certificates of deposit of state banks organized under the laws of Louisiana or national
banks having their principal offices in the State of Louisiana, an investment as stipulated in LSA-R.S.
39:1271, or any other federally insured investments or (2) in mutual or trust fund institutions, which are
registered with the Securities and Exchange Commission under the Securities Act of 1933 and the
Investment Act of 1940, and which have underlying investments consisting solely of and limited to
securities of the U.S. Government or its agencies.

Capital Assets

Capital assets are reported in the government-wide financial statements at historical cost. Additions,
improvements, or other capital outlays greater than $500 that significantly extend the useful life of an asset
are capitalized. Donated fixed assets, if any, are valued at their estimated fan: market value on the date
received. Costs incurred for repairs and maintenance are expensed as incurred. Depreciation on all assets
is provided on a straight-line basis over the following estimated useful lives:

         Building and improvements                          10 to 40 years
         Furniture and equipment                             5 to 10 years

Use of Estimates in the Preparation of Financial Statements

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

Ad Valorem Taxes

Ad valorem taxes are normally levied in November and billed in December. These taxes are due in January
of the following year. Any unpaid taxes are collected in connection with an auction held in May. The
Sheriff's department bills and collects the District's ad valorem taxes.

Ad valorem taxes are levied based on property values determined by the St. Tammany Parish Assessor (a
separate entity). All land and residential improvements are assessed at 10 percent of its fair market value,
and other property at 15 percent of its fair market value. The District was authorized to levy an ad valorem
tax of 10 mills on May 2, 1999, commencing in 1999 and ending in the year 2009. The tax is to be used for
the purpose of acquiring, constructing, improving, maintaining, or operating parks, playgrounds, recreation
centers, and other recreational facilities within the boundaries of Ward 2 of St. Tammany Parish.

The District's ad valorem tax revenues are recognized when levied to the extent that they are determined to
be currently collectible.

                                                       13
                     RECREATION DISTRICT #12 OF ST. TAMMANY PARISH

                                NOTES TO FINANCIAL STATEMENTS


NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)

Allowance for Uncollectible Receivables

The District's primary revenue source, ad valorem taxes, become delinquent if not paid by March 1
following the year of assessment. Unpaid taxes attach as an enforceable lien of property. The Board of
Commissioners determined, based on research of historical information of other entities, that current
collections are approximately 96.0% of the tax levy. At December 31, 2006 and 2005, the amount of
estimated uncollectible receivables was $7,875 and $8,373.

Reservations of Fund Balance

The District records reservations for portions of fund equity which are legally segregated for specific future
use or which do not represent available expendable resources and therefore, are not available for
appropriations or expenditure in the governmental fund balance sheet. Unreserved fund balance indicates
that portion of fund equity, which is available for appropriations, in future periods. Fund equity reserves
have been established for payables in the capital project funds and for the future debt service in the Debt
Service Fund. If restricted and unrestricted assets are available for the same purpose, then restricted assets
will be used before unrestricted assets.

Net Assets

Net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net
of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding
balance of any debt proceeds used for the acquisition, construction, or improvements of those assets. Net
assets are reported as restricted when there are legal limitations imposed on their use by District legislation
or external restrictions by creditors, grantors, laws or regulations of other governments.

Long-Term Obligations

Expenditures for principal and interest payments for long-term obligations are recognized in the
governmental funds when due.

Interfund Transactions

During the course of normal operations, the District has numerous transactions between funds. Interfund
transactions are generally classified as the following:

         Transfers are reported as "Other Financing Sources and Uses" in the governmental funds, as
         "Transfers In" by the recipient fund, and "Transfers Out" by the disbursing fund.

         On the government funds balance sheet, receivables and payables resulting from short-term
         Interfund loans are classified as "Due to Other funds". These amounts are eliminated on the
         statement of net assets.

Deferred Revenues

The District reports unearned deferred revenue in the governmental fund balance sheet. Deferred and
unearned revenue arises when potential revenue does not meet both the measurable and available criteria
for recognition in the current period. In general, monies received within thirty-one days after year-end are
considered to have been for prior year services.




                                                      14
                    RECREATION DISTRICT #12 OF ST. TAMMANY PARISH

                               NOTES TO FINANCIAL STATEMENTS


NOTE B - CASH AND CASH EQUIVALENTS

At December 31, 2006 and 2005, the District had cash and cash equivalents (book balances) totaling $9,040
and $13,265, respectively, in non-interest bearing demand deposits. The collected bank balances of
$12,707 and $18,624, respectively are secured from risk by $100,000 in federal deposit insurance. The
District's cash was not in excess of the FDIC insurance during 2006 and 2005.

NOTE C - INVESTMENTS

Investments of $160,900 and $122,138 at December 31, 2006 and 2005, respectively, are invested in the
Louisiana Asset Management Pool, Inc. (LAMP). These investments are stated at fair value based on
quoted market rates. The fair value is determined on a weekly basis by LAMP and the value of the external
pool is the same as the value of the pool shares. In accordance with GASB Codification Section 150.165,
the investment in LAMP is not categorized in the three risk categories provided by GASB because the
investment is in a pool of funds thereby not evidenced by securities that exist in physical or book entry
form. LAMP is administered by LAMP, Inc., a non-profit corporation organized under the laws of the
State of Louisiana, and is governed by a board of directors comprised of representatives from various local
governments and statewide professional organizations. Only local governments having contracted to
participate in LAMP have an investment interest in its pool of assets. The primary objective of LAMP is to
provide a safe environment for the placement of public funds in short-term, high quality investments. The
LAMP portfolio includes only securities and other obligations in which local governments in Louisiana are
authorized to invest. Accordingly, LAMP investments are restricted to securities issued, guaranteed, or
backed by the U.S. Treasury, the U.S. Government, or one of its agencies, enterprises, or instrumentalities;
as well as repurchase agreements collateralized by those securities. Effective in 2001, government-only
money market funds and Investment grade (A-l/P-1) commercial paper of domestic United States
corporations were also included. The dollar weighted average portfolio maturity of LAMP assets is
restricted to not more than 90 days, and consists of no securities with a maturity in excess of 397 days.
LAMP is designed to be highly liquid to give its participants immediate access to their account balances.

NOTE D - FIXED ASSETS

Fixed assets and depreciation activity as of and for the years ended December 31, 2006 for the primary
government are as follows:

                                           January 1,                        December, 31
                                             2006       Additions Transfers      2006
        Equipment                        $       47,119 $  10,933 $        - $      58,052
        Park land and improvements            1,087,161    22,706          -     1,109,867
        Construction in progress                      -         -          -             -

                                             1,134,280       33,639            -        1,167,919
        Less:
        Accumulated depreciation
        Equipment                       $       24,070        2,559             -         26,629
        Park land and improvements             195,261       39,290             -        234,551

                                               219,331       41,849            -          261,180

        Net Fixed Assets                $      914,949                              $     906,739




                                                    15
                    RECREATION DISTRICT #12 OF ST. TAMMANY PARISH

                               NOTES TO FINANCIAL STATEMENTS


NOTE D - FIXED ASSETS (continued)

Fixed assets and depreciation activity as of and for the years ended December 31, 2005 for the primary
government are as follows:

                                           January 1,                         December, 31
                                             2005       Additions Transfers      2005
        Equipment                        $       47,119 $        - $        - $      47,119
        Park land and improvements            1,067,837     19,324          -     1,087,161
        Construction in progress                 15,574              15,574                -

                                               1,130,530         19,324     15,574        1,134,280
        Less:
        Accumulated depreciation
        Equipment                                19,412           4,658                      24,070
        Park land and improvements              158,428          36,833                     195,261

                                                177,840          41,491                    219,331

        Net Fixed Assets                 $      952,690                               $     914,949

Depreciation expense for the years ended December 31, 2006 and 2005 was $41,849, and $41,491,
respectively.

NOTE E - CERTIFICATES OF INDEBTEDNESS

The District pursuant to an election, and authority granted by the State Bond Commission, was authorized
to levy a tax of 5.5 mills for the period from 1999 through 2009. In conjunction with the authorization, the
District issued its certificates of indebtedness to a bank in the original amount of $900,000. The purpose of
the issuance of the certificates of indebtedness was for the purchasing, acquiring, constructing, and
improving parks, playgrounds, recreation centers and other recreational facilities. These certificates have a
maturity of twenty (20) years beginning in June 1999 and bear interest ranging from 3.50% to 5.00%.
Principal payments are due annually on June 1 and interest is payable on June 1 and December 1 of each
year. Interest paid for the year ended December 31, 2006 and 2005 was $34,170 and $3 6,451, respectively.

Annual debt service requirements to maturity are as follows:

                        Year Ending           Principal        Interest       Total

                           2007              $ 40,000      $ 32,020           $ 72,020
                           2008                45,000        29,626             74,626
                           2009                45,000        27,320             72,320
                        2010-2014             265,000       101,754            366,754
                        2015-2018             270,000        28,250            298,250

                                             $665,000      $218,970          $883,970




                                                     16
                     RECREATION DISTRICT #12 OF ST. TAMMANY PARISH

                                 NOTES TO FINANCIAL STATEMENTS

NOTE F - CAPITAL LEASES

In March 2004, the District entered into a lease purchase agreement for the acquisition of a John Deere
tractor for $14,669. The monthly lease payment is $357, which includes principle and interest at 7.9%.
The lease expires February 2008. This lease agreement qualifies as a capital lease for accounting purposes
and therefore, the asset and debt has been recorded in the statement of net assets. Interest paid for the years
ended December 31, 2006 and 2005 was $539 and $822, respectively.

The following is a summary of future annual lease payments:


                        Year Ending             Principal           Interest           Total

                               2007              $      4,057        $;        232 $     4,289
                               2008                       708                   7          715
                                                 $      4,765        $;        239 $     5,004

NOTE G - LONG-TERM OBLIGATIONS

The following is a summary of the changes in long-term obligations as of December 31,2006 and 2005,
respectively:

                                          January 1,                                    December 31, Due within
                                            2006         Additions        Reductions        2006      one year

Certificates of indebtedness          $       705,000       $           - $    40,000 $          665,000 $   40,000
Capital lease                                   8,515                           3,750              4,765      4.057
                                      $       713,515       $           - $    43,750 $          669,765 $   44,057



                                          January 1 ,                                    December 3 1 , Due within
                                            2005            Additions     Reductions        2005        one year

Certificates of indebtedness          $       740,000       $           - $    35,000 $        705,000 $     40,000
Capital lease                                  11,982                           3,467            8,515        3,750
                                      $       751,982       $           - $    38,467 $        713,515 $     43,750

NOTE H - RETIREMENT PLAN

The District has a salary deferral plan qualified under Section 401(k) of the Internal Revenue Code. The
plan covers employees who have attained age 21 and have completed 1000 hours of service in a 12-month
eligibility computation period. The District has the option to match or provide discretionary contributions
to the plan. Employees may make contributions to the plan up to the maximum amount allowed by the
Internal Revenue Code if they wish. Plan expenses were $3,478 and $2,440 for the year ended December
31, 2006 and 2005, respectively.




                                                            17
                     RECREATION DISTRICT #12 OF ST. TAMMANY PARISH

                               NOTES TO FINANCIAL STATEMENTS

NOTE I - CONSTRUCTION COMMITMENTS

The District had one major project outstanding for construction of an irrigation system at Magnolia Park as
of December 31, 2004 that was completed in 2005. As of December 31, 2004, total project cost was
approximately $19,000 and $3,000 remained outstanding on the project. The project was completed and
capitalized in 2005 at a total cost of $19,324. No construction commitments were outstanding for the year
ended December 31, 2006.

NOTE J - INTERFUND BALANCES AND TRANSFERS

There were no interfund balances outstanding as of December 31, 2006 and 2005.

During the year ended December 31, 2005, $2,956 of revenue sharing funds were transferred out of the
general fund and put into the debt service fund. The capital project fund transfers of $33,639 from the
general fund were to purchase and install a playground which was partially funded by St. Tammany Parish.

During the year ended December 31, 2005, $24,826 of revenue sharing funds were transferred out of the
general fund and put into the debt service fund. The capital project fund transfers of $3,750 from the
general fund were to close the irrigation system project partially funded by a rural development grant.

NOTE K - HURRICANE KATRINA

On August 29, 2005, the District was impacted by Hurricane Katrina. The Hurricane caused building
damage and downed trees around the park. As of December 31, 2005, the District incurred $3,000 in
debris clean-up costs, and was reimbursed $4,740 by FEMA for these and future costs. As of December
31, 2005 the District was reimbursed $9,905 by its insurance company for damage incurred to facilities,
and incurred $2,405 in repair costs. A batting cage was destroyed during the storm that was on order as of
December 31, 2005 and the costs of those repairs were not incurred until 2006. The excess of insurance
coverage over damages incurred as of December 31, 2005 covered the cost of replacing the batting cage.

After the storm, the Red Cross used the park to set up an aid station. The District incurred costs associated
with the Red Cross* occupation of the park, and was subsequently reimbursed by the Red Cross for those
costs. As of December 31, 2005 the District had incurred $3,541 in costs associated with the Red Cross,
and accrued for the reimbursement from the Red Cross. As of December 31, 2005 the District had accrued
for a $3,541 reimbursement from the Red Cross that was received on January 18, 2006.

The net effect of costs and reimbursements associated with Hurricane Katrina are recorded as
miscellaneous income/(expense) in the statement of activities and changes in net assets as part of other
general revenues.

No costs associated with the Hurricane are included in the District's financial statements for the year ended
December 31,2006.




                                                     18
SUPPLEMENTARY INFORMATION
                       RECREATION DISTRICT NO. 12 OF ST. TAMMANY PARISH
                  STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
                 BALANCE - BUDGET TO ACTUAL (BUDGETARY BASIS) - GENERAL FUND
                                FOR THE YEAR DECEMBER 31, 2006


                                                                           GENERAL FUND                     Variance
                                                            Original          Amended                       Favorable
REVENUES                                                    Budget             Budget         Actual      (Unfavorable)

  Ad valorem taxes                                      $     118,000       $   128,158   $    138,254    $     10,096
  State revenue sharing                                         8,600             8,882          9,111             229
  Capital grants                                                    -            28,620         29,014             394
  Interest income                                                 500             2,232          2,315              83
  Culture and recreation, net                                  14,310            25,440         43,615          18,175
  Other income                                                    500                 -          3,559           3,559
                                                              141,910           193,332        225,868          32,536
EXPENDITURES
  Recreation
   Salaries                                                    56,462            55,932         62,492          (6,560)
   Retirement contribution                                      2,489             2,489          3,478            (989)
   Concessions
   Insurance                                                   15,302            13,951         13,951             (0)
   Utilities                                                   11,600            12,548         12,277            271
   Field maintenance                                            8,900             2,069          2,068              1
   Office expenditures                                         16,695            16,674         13,224           3,450
   Other                                                        3,835            14,265         13,921            344
   Repairs and maintenance                                     10,000            16,678         12,095           4,583
   Payroll taxes                                                5,089             7,172          7,172                -
   Contract labor                                               1,800             3,290          2,660             630
   Legal and professional                                       5,800             7,371          6,884             487
   Rent                                                           500              500             622            (122)
  Capital lease                                                                                                       _
   Principal                                                           -          3,750          3,750
   Interest                                                            -           539             539               -
 Capital outlay
                                                              138,472           157,228        155,134           2,094

EXCESS (DEFICIENCY) OF REVENUES
 OVER EXPENDITURES                                              3,438           36,104          70,734         34,630

Other Financing Sources (Uses)
  Intergovernmental transfers                                                                  (30,683)        (30,683)
                                                                       "              -        (30,683)        (30,683)
EXCESS(DEFICIENCY) OF REVENUES OVER
 OVER EXPENDITURES AND OTHER
 SOURCES (USES)                                                 3,438           36,104          40,051           3,947
                                                                                                                     _
Fund balance -beginning of year                               173,410           173,410        173,410

Fund balance ~ end of year                              $     176,848       $   209,514   $    213,461    $      3,947




                                See independent accountants' report and accompanying notes.
                                                             20
                       RECREATION DISTRICT NO. 12 OF ST. TAMMANY PARISH
                  STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
                 BALANCE - BUDGET TO ACTUAL (BUDGETARY BASIS) - GENERAL FUND
                                FOR THE YEAR DECEMBER 31,2005

                                                                  GENERAL FUND                        Variance
                                                   Original          Amended                          Favorable
REVENUES                                           Budget             Budget            Actual      (Unfavorable)

  Ad valorem taxes                             $     118,000       $   117,163      $    138,712    $     21,549
  State revenue sharing                                7,000             8,629             8,799             170
  Interest income                                        275             1,300             1,435             135
  Culture and recreation                              18,460            18,641            88,745          70,104
  Other income                                           500            13,238            10,876          (2,362)
                                                     144,235           158,971           248,567          89,597
EXPENDITURES
 Recreation
   Salaries                                           55,969              56,322          59,582          (3,260)
   Retirement contribution                             2,489               3,398           2,440             958
   Concessions                                                                  -         22,553         (22,553)
   Insurance                                          13,740              13,981          16,708          (2,727)
   Utilities                                          12,800              11,778          10,637           1,142
   Field maintenance                                   9,200               4,681           4,731              (50)
   Office expenditures                                13,900              11,896          13,766          (1,870)
   Other                                               4,660               8,596           7,449           1,147
   Repairs and maintenance                            14,000              12,296           7,522           4,773
   Payroll taxes                                       4,881               4,655           4,878            (223)
   Pension contribution                                                         -          6,350          (6,350)
   Contract labor                                                               -            300            (300)
   Legal and professional                              4,600               5,515           5,340             175
   Sports                                                   -                   -         34,387         (34,387)
   Rent                                                  600                 392             392                -
  Capital lease
   Principal                                                -                 -            3,467          (3,467)
   Interest                                                 -                 -              822            (822)
 Capital outlay                                        7,396             7,396                 -           7,396
                                                     144,235           140,906           201,324         (60,417)

EXCESS (DEFICIENCY) OF REVENUES
 OVER EXPENDITURES                                            -           18,065          47,243          29,180

Other Financing Sources (Uses)
  Intergovernmental transfers                                                            (28,576)        (28,576)
                                                              ~                ~         (28,576)        (28,576)
EXCESS(DEFICIENCY) OF REVENUES OVER
 OVER EXPENDITURES AND OTHER
 SOURCES (USES)                                               -           18,065          18,667             604

Fund balance — beginning of year                     154,743           154,743           154,743                .

Fund balance ~ end of year                     $     154,743       $   172,807      $    173,410    $        604




                                   See independent accountants' report.
                                                   21
                    RECREATION DISTRICT NO. 12 OF ST. TAMMANY PARISH
                   SCHEDULE OF COMPENSATION PAID TO BOARD MEMBERS
                         FOR THE YEAR ENDED DECEMBER 31, 2006




Board Member                                                                          Amount

Timothy Bartholomew
P.O. Box 181, Folsom, LA 70437                                                        $    -0-

Fred Oswald
404 Deerfield Rd., Folsom, LA 70437                                                       -0-

Richard Lonnie Allen
81296 Jim Loyd Rd., Folsom, LA 70437                                                      -0-

William R. Richardson
P.O. Box 825, Folsom, LA 70437                                                            -0-

Antoine Brumfield
84091 Celia Brumfield Rd., Folsom, LA 70437                                               -0-




                        See independent accountants' report and accompanying notes.
                                                     22
                           SILVA & ASSOCIATES, LLC
                                                    Certified Public Accountants

Craig A. Silva, CPA
BrentA.Silva,CPA
Tom A. Gurtner, CPA



                                    INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING
                                       AGREED-UPON PROCEDURES FOR COMPLIANCE
                                             WITH LAWS AND REGULATIONS


              Board of Commissioners
              Recreation District No. 12 of St Tammany Parish
              Folsom, Louisiana

              We have performed the procedures included in the Louisiana Government Audit Guide and enumerated
              below, which were agreed to by the management of the Recreation District No. 12 of St, Tammany Parish
              and the Legislative Auditor, State of Louisiana, solely to assist the users in evaluating management's
              assertions about the District's compliance with certain laws and regulations during the years ended
              December 31, 2006 and 2005, included in the accompanying Louisiana Attestation Questionnaire. This
              agreed-upon procedures engagement was performed in accordance with standards established by the
              American Institute of Certified Public Accountants and applicable standards of Government Auditing
              Standards. The sufficiency of these procedures is solely the responsibility of the specified users of the
              report. Consequently, we make no representation regarding the sufficiency of the procedures described
              below either for the purpose for which mis report has been requested or for any other purpose.

                                                               Public Bid Law

              1.      Select all expenditures made during the year for material and supplies exceeding $20,000, or public
                      works exceeding $100,000, and determine whether such purchases were made in accordance with
                      LSA-RS 38:2211-2251 (the public bid law).

                          The District did not purchase any items exceeding $20,000.

                                        Code of Ethics for Public Officials and Public Employees

              2.      Obtain from management a list of the immediate family members of each board member as defined by
                      LSA-RS 42:1101-1124 (the code of ethics), and a list of outside business interests of all board
                      members and employees, as well as their immediate families.

                          The District provided us with the required list including the noted information.

              3.      Obtain from management a listing of all employees paid during the period under examination.

                          The District provided us with the required list including the noted information.


              4.      Determine whether any of those employees included in the listing obtained from management in
                      agreed-upon procedure (3) were also included on the listing obtained from management in agreed-
                      upon procedure (2) as immediate family members.

                          None of the employees included on the list provided by the District [agreed-upon procedure (3)]
                          appeared on the list provided by management in agreed-upon procedure (2).

1605 Airline Dr., Suite 104                                                                                         4331 Iberville St.
    Metairie, LA 70001                                                                                          Mandeville, LA 70471
  Office: (504) 833-2436                                                                                        Office: (985) 626-8299
   Fax: (504)833-9101                                www.silvaandassociates.com                              Fax: (985) 626-9767
                                               Budgeting

5.   Obtain a copy of the legally adopted budget and all amendments.

          The District provided us with a copy of the adopted original budget and the adopted budget as
          amended.

6.   Trace the budget adoption and amendments to the minute book.

          We traced the adoption of the original budget to the minutes of a meeting held on December 14,
          2005 which indicated that the budget had been adopted by the commissioners of the District. An
          amended budget was then traced to the minutes of a meeting held on December 11, 2006.

7.   Compare the revenues and expenditures of the final budget to actual revenues and expenditures to
     determine if actual revenues failed to meet budgeted revenues by 5% or more or if actual expenditures
     exceed budgeted amounts by 5% or more.

          We compared the revenues and expenditures of the amended budget to actual revenues and
          expenditures. Total actual revenues and expenditures for the year did not exceed the amended
          budgeted amounts by more than 5%.

                                       Accounting and Reporting

8. Randomly select 6 disbursements made during the period under examination and:

     a)   trace payments to supporting documentation as to proper amount and payee;

                  We examined supporting documentation for each of the six selected disbursements and
                  found that the payment was for the proper amount and made to the correct payee.

     b) determine if payments were properly coded to the correct fund and general ledger account; and

                  All of the payments were properly coded to the correct fund and general ledger account.

     c)   determine whether payments received approval from proper authorities.

                  Inspection of documentation supporting each of the six selected disbursements indicated
                  approvals from the accountant and the chairman of the Board of Commissioners.

                                                Meetings

9.   Examine evidence indicating that agenda for jneetings recorded in the minute book were posted or
     advertised as required by LSA-RS 42:1 through 42:12 (the open meetings law).

                  The District is only required to post a notice of each meeting and the accompanying
                  agenda on the door of the District's office building. Management has asserted that such
                  documents were properly posted and we examined evidence supporting such assertion.

                                                   Debt

10. Examine bank deposits for the period under examination and determine whether any such deposits
    appear to be proceeds of bank loans, bonds, or like indebtedness.

                  We inspected copies of all bank deposit slips for the period under examination and noted
                  no deposits which appeared to be proceeds of bank loans, bonds, or like indebtedness.
                                         Advances and Bonuses

1 1 . Examine payroll records and minutes for the year to determine whether any payments have been made
     to employees, which may constitute bonuses, advances, or gifts.

                 A reading of the minutes of the District for the year indicated no approval for the
                 payments noted. We also inspected payroll records for the year and noted no instances
                 which would indicate payments to employees, or the Board of Commissioners which
                 would constitute bonuses, advances, or gifts.

Our prior year report, March April 9, 2006, included a comment and unresolved matter pertaining to actual
revenues and expenditures with unfavorable variances exceeding 5% of budgeted amounts has been
resolved and is not included as a comment in the current year report.

We were not engaged to, and did not, perform an examination, the objective of which would be the
expression of an opinion on management's assertions. Accordingly, we do not express such an opinion.
Had we performed additional procedures, other matters might have come to our attention that would have
been reported to you.

This report is intended solely for the use of management of the Recreation District #12 of St. Tammany
Parish and the Legislative Auditor, State of Louisiana, and should not be used by those who have not
agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes.
Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public
document.




May 14, 2007
          RECREATION DISTRICT #12 OF ST. TAMMANY PARISH

CURRENT YEAR FINDINGS & MANAGEMENT'S CORRECTIVE ACTION PLAN

                 FOR THE YEAR ENDED DECEMBER 31, 2006


We have no findings for the year ended December 31, 2006




                                        26
                    RECREATION DISTRICT #12 OF ST. TAMMANY PARISH

        PRIOR YEAR FINDINGS & MANAGEMENT'S CORRECTIVE ACTION PLAN

                          FOR THE YEAR ENDED DECEMBER 31, 2006


During 2005, we noted the following finding and management's response:

        Finding:

        Local Government Budgeting Act LSA-R.S. 39:1310 requires the Comptroller (or his/her
        equivalent) to notify the Board of Commissioners in writing during the year when actual revenues
        fail to meet budgeted revenues by 5% or more, or when actual expenditures exceed budgeted
        expenditures by 5% or more.          Furthermore, LSA-R.S. 39:1309 requires the Board of
        Commissioners to amend the budget upon being notified.

       It does not appear the District complied with these requirements. There are several instances of
       expenditures exceeding budget by 5% or more, with no evidence of notification.

        Response:

        The District's Board of Commissioners made a blanket amendment to the budget to cover all line
        items that were over or under by 5%. Each item was reviewed to see if they were over or under
        and then the blanket amendment was made instead of each individually. This amendment was
        made at the December 2005 board meeting.

        Items that were not covered in this amendment include sports revenue and expenses, and a lease of
        equipment. These items were not included in budget numbers and therefore were not part of the
        amendment. This was an oversight on the part of management and will be included next year.




                                                  27
                         LOUISIANA ATTESTATION QUESTIONNAIRE
                        (For Attestation Engagements of Government)

                                                  (Date Transmitted)

Silva & Associates. LLC
4331 Iberville Street
Mandeville. LA 70471
                                                                          (Auditors)

In connection with your review of our financial statements as of [date] and for the year then
ended, and as required by Louisiana Revised Statute 24:513 and the Louisiana Governmental
Audit Guide, we make the following representations to you. We accept full responsibility for our
compliance with the following laws and regulations and the internal controls over compliance with
such laws and regulations. We have evaluated our compliance with the following laws and
regulations prior to making these representations.

These representations are based on the information available to us as of (date of
completion/representations).

Public Bid Law

It is true that we have complied with the public bid law, LSA-RS Title 38:2212, and, where
applicable, the regulations of the Division of Administration, State Purchasing Office..
                                                                                    Yes^/1 No [ ]

Code of Ethics for Public Officials and Public Employees

It is true that no employees or officials have accepted anything of value, whether in the form of a
service, loan, or promise, from anyone that would constitute a violation of LSA-RS 42:1101-1124.
                                                                                    YesL/] No[ ]

It is true that no member of the immediate family of any member of the governing authority, or the
chief executive of the governmental entity, has been employed by the governmental entity after
April 1,1980, under circumstances that would constitute a violation of LSA-RS 42:1119.
                                                                                 YesL/] No[ ]

Budgeting

We have complied with the state budgeting requirements of the Local Government Budget Act
(LSA-RS 39:1301-14) or the budget requirements of LSA-RS 39:34.
                                                                             Yes [/} No [ ]

Accounting and Reporting

All non-exempt governmental records are available as a public record and have been retained for
at least three years, as required by LSA-RS 44:1,44:7,44:31, and 44:36.
                                                                               Y e s \ A No[ ]

We have filed our annual financial statements in accordance with LSA-RS 24:514, 33:463, and/or
39:92, as applicable.                                                                 .
                                                                              Yes[/]No[ ]

We have had our financial statements audited or compiled in accordance with LSA-RS 24^613.
                                                                              Yes[/No[ ]
Meetings

We have complied with the provisions of the Open Meetings Law, provided in RS 42:1 through
42:12.                                                                              /
                                                                              YesM No[ ]

Debt

It is true we have not incurred any indebtedness, other than credit for 90 days or less to make
purchases in the ordinary course of administration, nor have we entered into any lease-purchase
agreements, without the approval of the State Bond Commission, as provided by Article VII,
Section 8 of the 1974 Louisiana Constitution, Article VI, Section 33 of the 1974 Louisiana
Constitution, and LSA-RS 39:1410.60-1410.65.
                                                                                    Yes[/] No[ ]

Advances and Bonuses

It is true we have not advanced wages or salaries to employees or paid bonuses in violation of
Article VII, Section 14 of the 1974 Louisiana Constitution, LSA-RS 14:138, and AG opinion 79-
729.
                                                                                          No[

We have disclosed to you all known noncompliance of the foregoing laws and regulations, as well
as any contradictions to the foregoing representations. We have made available to you
documentation relating to the foregoing laws and regulations.

We have provided you with any communications from regulatory agencies or other sources
concerning any possible noncompliance with the foregoing laws and regulations, including any
communications received between the end of the period under examination and the issuance of
this report. We acknowledge our responsibility to disclose to you any known noncompliance
which may occur subsequent to the issuance of your report.

                                                          Secretary                        Date

                                                          Treasurer                         Date

                                                          President        &/(/   /O ~? Date

								
To top