Comprehensive Annual Financial Report - St. Tammany Parish ...

ST. TAMMANY PARISH GOVERNMENT
Notes to the Financial Statements 2010
for any unused sick leave earned during the year. At December 31, 2010, the District’s employees had accumulated
annual leave benefits of $70,179, all of which is considered to be non-current.
Recreation District No. 1 – Employees accrue vacation leave at various rates per year depending upon years of
service. At the end of the year, any remaining vacation days may be carried forward to the next year upon approval
of the executive director. Employees accrue sick leave at various rates per year depending upon years of service.
Sick leave is cumulative, but is not paid upon termination of employment. At December 31, 2010, Recreation
District No. 1 has recorded $29,091 in compensated absences payable, all of which is considered current.
Water District No. 2 – Employees of Water District No. 2 earn annual vacation leave based on their years of service.
For one service, they earn one week of vacation leave annually. For two or more years of service, they earn two
weeks of vacation leave annually. Upon termination of service, employees are paid for unused annual vacation leave.
Sick leave is earned at the rate of six days per year. A maximum amount of 60 days of sick leave can be
accumulated; however, all accumulated sick leave lapses upon termination. At December 31, 2010, the District had
accumulated $13,458 of employee leave, all of which is considered a current liability.
Other Component Units – All other discretely presented component units do not have a formal policy relating to
vacation and sick leave.
7. Long-Term Obligations
In the government-wide financial statements, and the proprietary fund types in the fund financial statements, longterm
debt and other long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as
issuance costs, are deferred and amortized over the life of the bonds using the straight-line method.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond
issuance costs, during the current period. The face amount of the debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
8. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balances for amounts that are not
available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of
fund balances represent tentative management plans that are subject to change. In the current year, the primary
government has reserves for encumbrances, debt service, bond retirement and prepaid items in the amounts of
$19,276,855, $6,419,484, $4,586,120 and $11,501, respectively.
9. Comparative Data
Comparative total data for the prior year have been presented only for individual enterprise funds in the proprietary
fund financial statements in order to provide an understanding of the changes in the financial position and operations
of these funds. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent
with the current year’s presentation.
10. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America require management to make estimates and assumptions that affect the reported 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, expenditures, and expenses during the reporting period. Actual results could differ from those
estimates.
II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. Explanation of certain differences between the governmental fund Balance Sheet and the government-wide
Statement of Net Assets
The governmental fund Balance Sheet includes a reconciliation between fund balance – total governmental funds and net
assets – governmental activities as reported in the government-wide Statement of Net Assets. One element of that
56