Lafayette Parish School Board

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Lafayette Parish School Board

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COMPREHENSIVE ANNUAL FINANCIAL REPORT-* noLAFAYETTE PARISHSCHOOL SYSTEMFor the Fiscal Year EndedJune 30,2004LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LouisianaPrepared by the Business Services Division:Jules A. Gaudin, CPA, MBAAssistant Superintendent of FinanceMatthew W. Dugas, CPADirector of FinanceStephanie N. RichardSenior AccountantJacqueline B. SnowShaun LegerGraphics and Illustrative Design2003/2004 Finance & Accounting Staff:Ron Bert rand, Carol Gaines, Lisa Russell, Stephen Woods, John Dominguc, Deborah McBridc, Amy Fremin,Brent Hebert, Renee Credeur, Donald Garber, Amy Lawrence, Josette Duhon, Barbara Addison,Teresa Duran, Etta Joseph, Cindy Conque, Lisa Hay don, Melissa Green, Yvonne Menard, Kay Ledet,Susan Kinkade, Pat Wooters, Sandra Compton, Carl Mechc, and Robert Simpson


LAFAYETTE PARISHSCHOOL SYSTEM


Lafayette Parish School SystemLafayette, LouisianaComprehensive Annual Financial ReportFor the Fiscal Year Ended June 30, 2004Table of ContentsTable of Contentsi - ivI. Introductory SectionMessage from the SuperintendentLetter of TransmittalGovernment Finance Officers AssociationCertificate of Achievement for Excellence in Financial ReportingAssociation of School Business OfficialsCertificate of Achievement for Excellence in Financial ReportingOrganizational ChartPrincipal & Administrative Officialsvvii-xivxvxvixviixviiiII.Financial SectionIndependent Auditor's Report 1-2Management's Discussion and Analysis 3-16Basic Financial StatementsGovernment-Wide Financial StatementStatement of Net Assets 17Statement of Activities 18Fund Financial StatementsBalance Sheet-Governmental Funds 19Reconciliation of the Governmental Funds Balance Sheet to the Statement ofNet Assets 20Statement of Revenues, Expenditures, and Changes in Fund Balances -Governmental Funds 21Reconciliation of the Statement of Revenues, Expenditures, and Changes inFund Balances of Governmental Funds to the Statement of Activities 22Statement of Net Assets - Group Insurance Internal Service Fund 23Statement of Revenues, Expenses, and Changes in Fund Net Assets - GroupInsurance Internal Service Fund 24Statement of Cash Flows - Group Insurance Internal Service Fund 25-26Statement of Fiduciary Net Assets - Fiduciary Funds 27Statement of Changes in Fiduciary Net Assets - Private Purpose Trust Funds 28Notes to the Basic Financial Statements 29-61


Lafayette Parish School SystemLafayette, LouisianaComprehensive Annual Financial ReportFor the Fiscal Year Ended June 30, 2004Table of ContentsPagefs)Non-Major Capital Projects FundCombining Balance Sheet 93Combining Statement of Revenues, Expenditures, and Changes in FundBalances 94-95Fiduciary FundsCombining Statement of Assets and Liabilities - Agency Funds 97Combining Statement of Changes in Assets and Liabilities 98Comparative Schedule of Cash Receipts and Disbursements - Sales TaxAgency Fund 99Schedule of Changes in Deposits Due Others - School Activity Agency Fund 100Combining Balance Sheet - Private Purpose Trust Funds 101Combining Statement of Changes in Net Assets-Private Purpose Trust Funds 102Capital Assets - Governmental FundsSchedule of General Capital Assets - By Source 103Schedule of Changes in General Capital Assets - By Function 104Schedule of General Capital Assets -By Function 105III. Statistical Section (Unaudited) TableGovernment-wide Revenues by Source-Last Three Fiscal Years (Unaudited) 108 IGovernment-wide Revenues by Function-Last Three Fiscal Years (Unaudited) 109 IIFund Financial Revenues by Source - Last Ten Fiscal Years (Unaudited)110-111 IIIFund Financial Revenues by Function - Last Ten Fiscal Years (Unaudited)112-113 IVProperty Tax Levies and Collections - Last Ten Fiscal Years (Unaudited)114-115 VAssessed and Estimated Actual Value of Taxable PropertyLast Ten Fiscal Years (Unaudited) 116 VIComputation of Direct and Overlapping/UnderlyingGeneral Bonded Debt (Unaudited) 117 VIIProperty Tax Rates - Last Ten Fiscal Years (Unaudited)118-119 VIIIPrincipal Taxpayers (Unaudited) 120 IXComputation of Legal Debt Margin (Unaudited) 121 XState Support and Local Support Per Student - Last Ten Fiscal Years (Unaudited) 122 XIRatio of Net General Bonded Debt To Assessed Value and Net Bonded Debt PerCapita 123 XIIRatio of Annual Debt Service Expenditures for General Bonded Debt to Generaland Special Revenue Fund Expenditures 124 XIIIDemographic Statistics 125 XIVProperty Values, Construction, and Bank Deposits126-127 XVMiscellaneous Statistical Data 128 XVI


Lafayette Parish School SystemLafayette, LouisianaComprehensive Annual Financial ReportFor the Fiscal Year Ended June 30,2004Table of ContentsPagefslIV.Single Audit SectionReport on Compliance and on Internal Control Over FinancialReporting Based on an Audit of Financial Statements Performedin Accordance with Government Auditing Standards 129-130Report on Compliance with Requirements Applicable to EachMajor Program and Internal Control Over Compliance inAccordance with OMB Circular A-l 33 131-132Schedule of Expenditures of Federal Awards 133-135Notes to Schedule of Expenditures of Federal Awards 136Schedule of Findings and Questioned Costs 137Summary Schedule of Current and Prior Year Audit Findingsand Corrective Action Plan 138-145


LAFAYETTE PARISHSCHOOL SYSTEM


LAFAYETTE PARISH SCHOOL SYSTEMLAFAYETTE PxRifi P. O. Drawer 2158 • Lafayette, LA 70502-2158 • (337)236-6800SCHOOL SYSTEMDecember 3, 2004The President and Members of theLafayette Parish School Board113 Chaplin DriveLafayette, Louisiana 70508Dear Board Members:With pleasure, I submit to you the Comprehensive Annual Financial Report (CAFR) of the LafayetteParish School System for the fiscal year ended June 30, 2004.Again last year, we applied for and received the prestigious Government Finance OfficersAssociation's (GFOA) Certification of Achievement for Excellence in Financial Reporting and theAssociation of School Business Officials' (ASBO) Certification of Excellence in Financial Reporting.These awards are important because they represent national acknowledgement from our peers that theLafayette Parish School System has achieved excellence in financial reporting. Receipt of theseprestigious awards also demonstrates that we are using sound financial and accounting reportingpractices and demonstrating conscientious stewardship of public dollars. We are again preparing theCAFR in compliance with national standards and we will submit it with the expectation ofrecognition for the twelfth consecutive year.The Business Services Division is to be commended for their efforts and compliance with the nationalstandards. Further, special recognition is due the many staff members whose leadership and abilityare moving us toward the highest standards of fiscal accountability.Finally, please let me take this opportunity to thank the School Board for their support and direction.Respectfully submitted,imes HTEastbn, Ed.D.Superintendentjbs


LAFAYETTE PARISHSCHOOL SYSTEM


LAFAYETTE PARISH SCHOOL SYSTEMLAFAYETTE PARISH P- O. Drawer 2158 • Lafayette, LA 70502-2158 • (337) 236-6800SCHOOL SYSTEMDecember 3, 2004To the Members of the Board and the Citizens of Lafayette Parish:The Lafayette Parish School System (referred to in this letter as the "School System" and LPSS)is required to issue a complete set of financial statements within six months of the end of thefiscal year. These statements have been prepared in conformity with United States generallyaccepted accounting principles (GAAP) and audited in accordance with generally acceptedauditing standards by a firm of licensed certified public accountants. Therefore, we are pleased tosubmit to you the Comprehensive Annual Financial Report (CAFR) of the Lafayette ParishSchool System for the fiscal year ended June 30, 2004.The CAFR is presented in four sections: introductory, financial, statistical and single audit. Theintroductory section includes this transmittal letter, a copy of the latest Association of SchoolBusiness Officials (ASBO) and Government Finance Officers Association (GFOA) Certificatesand the School System's organizational data. The financial section includes the independentauditors' report, management's discussion and analysis, the financial statements, related notes,required supplementary information and other supplementary information that is not required butconsidered useful by management. The statistical section includes selected financial anddemographic information, generally presented on a multi-year basis. The single audit sectionincludes various reports resulting from a single audit in conformance with the provisions of theSingle Audit Act of 1996 and the U.S. Office of Management and Budget Circular A-133, Auditsof States, Local .Governments, and Non-Profit Organizations.Management RepresentationsResponsibility for both the accuracy of the data and the completeness and fairness of thepresentation, including all disclosures, rests with the members of the Lafayette Parish SchoolBoard ("School Board") and management of the School System. To the best of our knowledgeand belief, the enclosed data are accurate in all material respects and are reported in a mannerdesigned to present in a fair manner the financial position and results of operations of variousfunds and account groups of the School System.


Retail sales in Lafayette Parish have increased each year for the past twelve fiscal yearsincluding the most recent year of July 2003 through June 2004. That fiscal year endedwith an increase of 1.6%. Sales are categorized into ten groups (food, apparel, generalmerchandise, automotive, home furnishings, building materials, miscellaneous services,manufacturers, utilities, and miscellaneous). Six groups (food, apparel, generalmerchandise, building materials, utilities, and miscellaneous) showed an increase in the2003-2004 fiscal year, with the largest increase in the general merchandise group. Theremaining four groups had decreases, with the largest decrease in the home furnishingsgroup. Future building growth, as measured by the dollar value of metro code buildingpermits, decreased 11% for fiscal year ended June 2004. This compared to an increase of28% for the prior fiscal year in which permits reached an all-time record of $321 million.Located at the intersection of interstates 10 & 49, Lafayette Parish continues to developas a distribution center. During the current fiscal year, Schilling Distributing, a beerproduction and distribution company, completed a new $10 million facility in NorthLafayette. Also in the planning stages is a $5 million furniture distribution center whichwill allow same-day delivery to most of south Louisiana.Diversification is a major reason the Lafayette economy has done so well over the pasteleven years. A key player in this process had been the medical industry. Lafayette hasbecome known as a regional medical destination because of its superior health carefacilities. Aging baby boomers are causing a dramatic increase in demand for health careservices. The result is the completion of a new heart hospital and various major medicalexpansions.The Lafayette Parish economy remains strong. The unemployment rate for the parishcontinues to hover at a low 3.4% (April 2004) and the parish is projected to increase insize and wealth in the coming years as it has steadily since 1990. Lafayette continues tobe attractive to new business. In 2003 Entrepreneur magazine ranked Lafayette as thesixth best place in the South and eighteenth in the nation for entrepreneurial activity andsmall business and job growth.Lafayette Parish has experienced high growth rates in some of the smaller communitiesin the southeastern part of the parish. The city of Broussard is currently Louisiana's toprankedcity for business employment growth at 69.7% and is in the top 100 in the U.S.Broussard is also anticipating further economic growth due to the pending extension of amajor road from the city of Lafayette to U.S. Route 90 (future 1-49 corridor) that will runthough the city.The town of Youngsville has experienced population growth of 11% in the past twoyears. This increase in population is fueling new retail and residential developmentsthroughout the town. The first phase of a 2,000 acre project is now underway which willinclude a mix of residential and commercial development. Additional information aboutLafayette and its economy can be found at www.lafayette.org/home.Long-Term Financial. PlanningA difficult challenge faced by the School System is balancing our operational needs withavailable resources. Increased expenditures associated with Schools of Choice programsrequired in a Consent Decree governing court-ordered desegregation, increasededucational costs via lower pupil/teacher ratios, increased health care costs, aging


facilities, and increased utility and fuel costs are just a few of the many items that havecontinued to adversely impact the overall financial condition.Operating expenditures must be reduced if expected increases in educational programsand health care are to be addressed without using the fund balance. The School Boardtook the first step toward addressing this issue by adopting a balanced budget for fiscalyear 2004-2005. One major element of the effort to balance the budget was an increase inthe student/teacher ratio by one student. Increasing the ratio of students to teachers in theclassroom saves operational dollars and also reduces the need for additional facilitiessuch as portable buildings. In addition, the Board has begun a cooperative effort with theChamber of Commerce to bring in a class size expert to evaluate the current class sizesand make a recommendation on how to best target class size reduction dollars to the mosteducationally effective areas and reduce operational expenditures.If sufficient reductions are made in operational expenditures, we may be able to resume anormal level of facility repair and renovations. The facility renovation program could beaccelerated if voters are willing to dedicate a tax increase to such a project. In this case, aportion of the tax proceeds could be dedicated to a bond issue to address the many repairand renovation projects which have been deferred for several years.Cash Management and InvestmentsThe administration's investment policy is to minimize credit and market risks whilemaintaining a competitive yield on its portfolio. Cash that is temporarily idle during theyear can be invested in interest-bearing demand deposits, certificates of deposit, andinvestments backed by the U.S. Government or its agencies. In August of 2003, theSchool System entered into a new banking contract with Iberia Bank. The contractincluded the option of interest bearing checking accounts with a rate based on the 91-dayU.S Treasury Bill rate plus 33 basis points. This rate has consistently been higher thanrates available to the School System using other investment alternatives. Keeping idlecash in these accounts provides both liquidity and maximized returns. As a result, themajority of School System funds have been transferred to interest bearing Iberia Bankchecking accounts.The School System also has funds invested in the Louisiana Asset Management Pool(LAMP). LAMP is an investment pool established as a cooperative endeavor to enableLouisiana public entities to aggregate funds for investment. The pool only includessecurities and other obligations that are permissible under Louisiana State Law. The poolallows daily access to funds without penalty or fee for transfer, deposit or withdrawal.The rates available in the LAMP fund have been consistently a little lower than thoseoffered by Iberia Bank. However, we continue to maintain some balances in LAMP toallow for quick movement of funds if market conditions create a LAMP yield higher thanthe rate available from Iberia Bank.Risk ManagementThe School System has a Risk and Benefits manager on staff whose job is to mitigaterisks. The position's duties include system-wide safety, health care management,property and casualty loss control, and workers' compensation case management. As aresult, we are proactive in reviewing cost trends to ensure that claims management iseffective. Further, when necessary, we pursue independent evaluations of claims. Part ofour risk management program is site-based loss prevention to minimize liability losses.


Finally, we continue our commitment to review all operations in light of claimsexperience with an eye toward reducing losses.In the current fiscal year the self-insured retention per occurrence for property insuranceis $1,000,000; for general liability it is $250,000; for workers' compensation it is$500,000; and for auto liability it is $100,000. A $250,000 designation of fund balancehas been set up in the General Fund to provide a partial source of funds for claims.Post-Employment BenefitsThe School System does provide certain continuing health care and life insurancebenefits for its retired employees. More information on these benefits and their associatedcosts can be found in note 13 of the Notes to the Financial Statements located after theBasic Financial Statements of this document.GFOA Certificate of AchievementThe Government Finance Officers Association of the United States and Canada (GFOA) awardeda Certificate of Achievement for Excellence in Financial Reporting to the Lafayette Parish SchoolSystem for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2003,which is the eleventh year we have received this award. The Certificate of Achievement is aprestigious national award recognizing conformance with the highest standards for preparation ofstate and local financial reports.In order to be awarded a Certificate of Achievement, a governmental unit must publish an easilyreadable and efficiently organized Comprehensive Annual Financial Report, the contents ofwhich conform to program standards. Such reports must satisfy both U. S. generally acceptedaccounting principals and applicable legal requirements.A Certificate of Achievement is valid for only a period of one year. We believe our reportcontinues to conform to Certificate of Achievement program requirements, and we are submittingit to the GFOA to determine eligibility for another certificate.ASBO Certificate of ExcellenceThe Association of School Business Officials of the United States and Canada (ASBO) awarded aCertificate of Excellence in Financial Reporting to the Lafayette Parish School System for ourComprehensive Annual Financial Report for the fiscal year ended June 30, 2003, which is theeleventh year we have received this award.The award certifies that the recipient school system presented its Comprehensive AnnualFinancial Statement to the ASBO Panel of Review for critical review and evaluation and that thereport was judged to have complied with the U. S. principles and practices of financial reportingrecognized by ASBO.Receiving this award is recognition that a school system has met the highest standards ofexcellence in school financial reporting.


A Certificate of Excellence is valid for a period of only one year. We believe our report continuesto conform to Certificate of Excellence program requirements, and we are submitting it to theASBO to determine eligibility for another certificate.AcknowledgementsThe preparation of this report was made possible by the dedicated efforts of the FinanceDepartment staff. All members have our sincere thanks and appreciation for their contributions.We commend the Superintendent and the members of the School Board for their interest andsupport in planning and conducting the financial operations of the School System in a responsibleand progressive manner.Special appreciation is expressed to Jacqueline Snow and Shaun Leger for their contribution indesigning, compiling, and producing this report. We would also like to thank our auditors andtheir clerical staff for their assistance in the coordination and preparation of this document.Finally, we would like to congratulate the accountants employed by the School System. Theseaccountants are Carol Gaines, Ron Bertrand, Brent Hebert, Stephen Woods, John Domingue,Jennifer Nestor, and Lisa Russeil. Their efforts and contributions throughout the year made thepreparation of the 2003/2004 Comprehensive Annual Financial Report a success.Respectfully submitted,Matthew W. Dugas, CPADirector of FinanceStephanie N. RichardSupervisor Budget & AccountingJules A. Gaudin, CPA, MBADeputy Superintendent& Chief Financial Officerjbs


cyOp SCHOOLINTERNATIONALThis Certificate of Excellence in Financial Reporting is presented toLAFAYETTE PARISH SCHOOL SYSTEMFor its Comprehensive Annual Financial Report (CAFR)For the Fiscal Year Ended June 30, 2003Upon recommendation of the Association's Panel of Review which has judged the Reportsubstantially conforms to principles and standards of ASBO's Certificate of Excellence ProgramPresidentExecutive DirectorU&a>


Certificate ofAchievementfor Excellencein FinancialReportingPresented toLafayette Parish SchoolSystem, LouisianaFor its Comprehensive AnnualFinancial Reportfor the Fiscal Year EndedJune 30,2003A Certificate of Achievement for Excellence in FinancialReporting is presented by the Government Finance OfficersAssociation of the United States and Canada togovernment units and public employee retirementsystems whose comprehensive annual financialreports (CAFRs) achieve the higheststandards in government accountingand financial reporting.PresidentExecutive Director


LAFAYETTE PARISH SCHOOL BOARDORGANIZATIONAL CHART


Lafayette Parish School BoardPrincipal OfficialsSchool Board Members(All Board Members are in office for the same four-year term:January 1,2003 through December 31,2006)Michael C. HefnerPresidentDistrict 5Vide-PresidentRicky HardyDistrict 3Board Members:John Earl Guidry, District 1Carl LaCombe, District 2Edward Sam, District 4Beverly Wilson, District 6David Thibodaux, District 7Judy Cox, District 8Kay Gibson, District 9^Administrative Officials«d>James H. Easton, Ed.D.SuperintendentJules A. Gaudin, CPA, MBAAssistant Superintendent of FinanceBurnell LemoineAssistant Superintendent ofInstructional Services


LAFAYETTE PARISHSCHOOL SYSTEM


C Burton Kolder. CPA'Russell F. Champagne, CPA'Victor R Slaven, CPA'Conrad 0 Chapman, CPA'P Troy Courville, CPA"Gerald A. Thibodeaux, Jr., CPA'KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTSWEB SITE:WWW KCSRCPAS COMRobert S Carter. CPAAllen J.UBry, CPAHarry J. Clostio, CPAPenny Angelle Scruggins. CPAChnsline L. Cousin, CPAMary T Thibodeaux. CPAKelly M Doucet. CPAKenneth J. Rachal, CPAChefyl L. Bartley. CPA, CVAMEMBER OF:AMERICAN INSTITUTE OFCERTIFIED PUBLIC ACCOUNTANTSSOCIETY OF LOUISIANACERTIFIED PUBLIC ACCOUNTANTS* A Professional Accounting CorporationINDEPENDENT AUDITORS' REPORTDr. James H. Easton, Superintendent,and Members of the Lafayette Parish School BoardLafayette, LouisianaWe have audited the accompanying financial statements of the governmental activities, each majorfund, and the aggregate remaining fund information of the Lafayette Parish School Board (the School Board),as of and for the year ended June 30, 2004, which collectively comprise the School Board's basic financialstatements as listed in the table of contents. These financial statements are the responsibility of the SchoolBoard's management. Our responsibility is to express opinions on these financial statements based on ouraudit. The prior year comparative information has been derived from the School Board's 2003 financialstatements and, in our report dated November 14, 2003, we expressed unqualified opinions on the respectivefinancial statements of the governmental activities, each major fund, and the aggregate remaining fundinformation.We conducted our audit in accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government Auditing Standards.issued by the Comptroller General of the United States. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free of material misstatement.An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinions.In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, each major fund, and the aggregate remainingfund information of the School Board, as of June 30, 2004, and the respective changes in financial positionand cash flows, where applicable, thereof for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.In accordance with Government Auditing Standards, we have also issued our report dated November12, 2004, on our consideration of the School Board's internal control over financial reporting and on our testsof its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integralpart of an audit performed in accordance with Government Auditing Standards and should be read inconjunction with this report in considering the results of our audit.I S3 South BeadleLafayette. LA 70508Phone (337) 232-4 MlFax(337)232-8660113 Easl Bridge SueetBtcaux Bridge, LA 70517Phone (337) 332-4020Fax (337) 332-2867133 East WaddilMarksville, LA 71351Phone(318)253-9252Fax(318)253-86811234 David Drive, Suite 105Morgan Cily, LA 70380Phone (985) 384-2020Fax (985) 384-3020408 W. Cotlon St/eeiVill« Plane. LA 70586Phone(337)363-2792Fax (337) 363-3049332 W Sixth AvenueOberlin, LA 70655Phone (33 7) 619-4737Fax (337) 639-4568200 South Main StreetAbbeville. LA 70S 10Phone (337) 893-7944Fax (337) 893-7946


The Management's Discussion and Analysis and the other required supplementary information onpages 3 through 15 and 63 through 64, respectively, are not a required part of the basic financial statementsbut are supplementary information required by the Governmental Accounting Standards Board. We haveapplied certain limited procedures, which consisted principally of inquiries of management regarding themethods of measurement and presentation of the required supplementary information. However, we did notaudit the information and express no opinion on it.Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the School Board's basic financial statements. The other supplementary information onpages 65 through 105 is presented for purposes of additional analysis and is not a required part of the basicfinancial statements. The accompanying schedule of expenditures of federal awards included in the SingleAudit Section in the table of contents is presented for purposes of additional analysis as required by U.S.Office of Management and Budget Circular A-133, "Audits of States, Local Governments, and Non-ProfitOrganizations", and is also not a required part of the basic financial statements of the Lafayette Parish SchoolBoard. Such information, except for that portion marked "unaudited" on which we express no opinion, hasbeen subjected to the auditing procedures applied in the audit of the basic financial statements and, in ouropinion, is fairly presented in all material respects in relation to the basic financial statements taken as awhole.Kolder, Champagne, Slaven & Company, LLCCertified Public AccountantsLafayette, LouisianaNovember 12, 2004


Lafayette Parish School BoardLafayette, LouisianaMANAGEMENT'S DISCUSSION AND ANALYSISJune 30, 2004INTRODUCTIONThis section contains a narrative overview and analysis of the financial activities of the LafayetteParish School System ("School System") for the fiscal year ended June 30, 2004. The intent ofManagement's Discussion and Analysis ("MD&A") is to look at the overall financialperformance of the School System using an objective, easily readable analysis of the SchoolSystem's financial activities. Therefore, we encourage readers to consider the informationpresented herein in conjunction with additional information that we have furnished in our Letterof Transmittal, Basic Financial Statements, and the Notes to the Basic Financial Statements.Please reference the Table of Contents for the exact location of those items.FINANCIAL HIGHLIGHTS- The School System's total net assets exceeded its liabilities at the close of the fiscal yearby $60,261,897. Of this amount, $29,311,155 was invested in capital assets, net of relateddebt. $3,770,776 was restricted to teacher salaries and benefits in accordance with thededication of a new sales tax. $12,712,746 was restricted for debt service and$14,197,517 is unrestricted.In the Statement of Activities, expenses of governmental activities were $226,057,066with $33,305,038 of those expenses provided by program revenues from operating grantsand contributions and $2,018,437 provided via charges for services, most of which werefor meals in the food service program.As of the close of the current fiscal year, the School System's governmental fundsreported a combined ending fund balance of $36,844,820. The General Fund accountedfor $13,683,815 of the total with $7,791,672 being unreserved and undesignated.The General Fund experienced a deficiency of revenues and sources over expendituresand uses of $2,251,186. This reduced the fund balance from $15,935,001 to $13,683,815.The School System's 2002 Sales Tax Fund experienced sales tax collections and interestincome of $16,630,047 of which $16,271,609 was expended on teacher salaries andbenefits as dedicated and approved by the voters. The tax was passed in late 2001 andcollections began in January of 2002. hi previous fiscal years the activity associated withthis fund was included in the General Fund. In this and future fiscal years all 2002 taxfund activity will be accounted for and presented in a separate special revenue fund.USING THE COMPREHENSIVE FINANCIAL REPORT (CAFR)This discussion and analysis is intended to serve as an introduction to the School System's BasicFinancial Statements. The School System's Basic Financial Statements are comprised of threecomponents: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3)Notes to the Basic Financial Statements. This report also contains other supplementaryinformation in addition to the Basic Financial Statements themselves.


Lafayette Parish School BoardLafayette, LouisianaMANAGEMENT'S DISCUSSION AND ANALYSISJune 30, 2004Government-wide Financial StatementsThe government-wide financial statements are designed to provide readers with a broad overviewof the School System's finances. These statements include all assets and liabilities using theaccrual basis of accounting which is the same basis used by most private-sector enterprises. Theaccrual basis takes into account all of the Board's current year revenues and expenses regardlessof when paid or received.The Statement of Net Assets presents information on all of the School System's assets andliabilities, with the difference between the two reported as net assets. Over time, increases ordecreases in net assets may serve as a useful indicator of whether the financial position of theSchool System is improving or deteriorating. However, the School System's objective is toprovide services to our students, not to generate profits as commercial entities do. One mustconsider many other non-financial factors, such as the quality of the education provided and thesafety of the schools to assess the overall health of the School System.The Statement of Activities presents information showing how the government's net assetschanged during the most recent fiscal year. All changes in net assets are reported as soon as theunderlying event giving rise to the change occurs, regardless of the timing of the related cashflows. Therefore, revenues and expenses are reported in this statement for some items that willonly result in cash flows in future fiscal periods. Examples of such items may be earned butunused vacation leave or uncollected taxes.Fund Financial StatementsThe School System's fund financial statements provide detailed information about the mostsignificant funds. A fund is a grouping of related accounts that is used to maintain control overresources that have been segregated for specific activities or objectives. The Lafayette ParishSchool System uses fund accounting to ensure and demonstrate compliance with finance relatedlegal requirements and to help it control and manage money for particular purposes. All of thefunds of the School System can be divided into three categories: governmental funds, proprietaryfunds, and fiduciary funds.Governmental FundsMost of the School System's basic services are included in governmental funds, which focus onhow money flows in and out of those funds, the balances that are left at the end of the year andthe amount available for spending in future years. These funds are reported using the modifiedaccrual basis of accounting, which measures cash and all other financial assets that can readily beconverted to cash. Such information may be useful in evaluating a government's near-termfinancing requirements.Because the focus and accounting method of fund financial statements is different from that ofthe government-wide financial statements, a Reconciliation of the Governmental Funds BalanceSheet to the Statement of Net Assets is provided as part of this document.


Lafayette Parish School BoardLafayette, LouisianaMANAGEMENT'S DISCUSSION AND ANALYSISJune 30, 2004The Lafayette Parish School System maintains various individual governmental funds.Information is presented separately in the Governmental Funds Balance Sheet and in thegovernmental funds Statement of Revenues, Expenditures and Changes in Fund Balances for theGeneral Fund, 2002 Sales Tax and the Sales Tax Revenue Bonds, all of which are considered tobe major funds. Data from the other remaining governmental funds are combined into a single,aggregated presentation. Individual fund data for each of these non-major governmental funds isprovided in the form of combining statements elsewhere in this document.The School System adopts an annual unified budget that includes all significant funds in onedocument. During the course of the year, this budget is amended to take into considerationchanges that have occurred affecting revenue and expenditures. A statement showing original andfinal budget compared with actual operating results is provided in the Other RequiredSupplementary Information section for the general and major special revenue funds todemonstrate compliance with this budget.The Sales Tax Revenue Bonds fund is a debt service fund; therefore, a budget comparison is notrequired information. However, the sales tax revenue bonds budget comparison is presented asan optional schedule in Other Supplementary Information. Also in this section is an additionalcomparison of General Fund revenues and expenditures with the budget and the actualexpenditures from the previous year at a greater level of detail. Management feels that this levelof detail will be useful to the reader and provide an easily accessible source of information for thefuture.Proprietary FundsThe School System maintains a Group Insurance Internal Service Fund which is the onlyproprietary fund used. The School System uses this internal service fund as an accounting deviceto accumulate and allocate costs internally among the School System's various functions for itsself-funded health insurance program.Fiduciary FundsThe School System uses fiduciary funds to account for resources held for the benefit of partiesoutside the government. Fiduciary funds are not reflected in the government-wide financialstatements because the resources of those funds are not available to support the School System'sown programs. The School System has six fiduciary funds consisting of two Agency Funds andfour Private Purpose Trust Funds that are described in greater detail on the divider page of theFiduciary Funds section of this document.Notes to the Basic Financial StatementsThe notes provide additional information that is essential to a full understanding of the dataprovided in the government-wide and fund financial statements.


Lafayette Parish School BoardLafayette, LouisianaMANAGEMENT'S DISCUSSION AND ANALYSISJune 30,2004Other InformationIn addition to the Basic Financial Statements and accompanying notes, the report also presentscertain required supplementary information concerning budget comparisons of the General Fundand major Special Revenue Funds. In addition, the School System has chosen to presentsupplementary information that is not required but considered by management to be useful to thereader. This information is located behind the divider page titled "Other SupplementaryInformation (Optional)."Lafayette Parish School System's Net Assets2004 2003Current and other assets $ 72,986,373 $ 71,687,914Capital assets 134,153,135 138,422.160Total Assets 207,139,508 210,110,074Current and other liabilities 36,201,540 31,463,263Long-term liabilities 110,676.071 113,743,289Total Liabilities 146,877,611 145,206,552Invested in capital assets, netof related debt 29,311,155 30,698,003Restricted 16,753,225 16,489,968Unrestricted 14,197,517 17,715,551Total Net Assets $ 60,261,897 $ 64,903,522Net assets may serve over time as a useful indicator of a government's financial position. In thecase of the School System, assets exceeded liabilities by $60,261,897 at the close of the fiscalyear. Of this amount $29,311,155, or 48.6% of total net assets, represents the investment of theSchool System in capital assets net of related debt. Net assets of $14,197,517 that are technicallyunrestricted need to be viewed in light of information in the fund financial statements. Some ofthis unrestricted amount represents funds for expenditures that the School Board has approved orbudgeted but has not been legally obligated to pay. Actions by the School Board do not qualify asrestrictions of net assets in the Basic Financial Statements.Capital assets account for $134,153,135, or 64.8% of total assets. This is reflective of theinvestment in new and improved facilities funded by a series of bond issues in recent years. Thisis further highlighted by the fact that $110,676,071, or 75% of the School System's liabilities,represents long-term debt.


Lafayette Parish School BoardLafayette, LouisianaMANAGEMENT'S DISCUSSION AND ANALYSISJune 30,2004Governmental activitiesGovernmental activities decreased the School System's net assets by $4,641,625.Lafayette Parish School System's Statement of ActivitiesGrants and ContributionsProperty TaxesSales and Use TaxesNon-grant State FundingInterest and Misc & ChargesTotal RevenuesInstructionSupport ServicesFood & Community ServicesInterest & Facilities AcquisitionTotal ExpensesChange in Net AssetsNet Assets Beg. of Fiscal YearNet Assets End of Fiscal Year2004$ 33,305,03830,012,45871,284,18981,888,2144,925,542221,415,441144,945,07664,635,45910,374,9996,101,532226,057,066(4,641,625)64,903,522$ 60,261,8972003$ 30,724,90726,876,35670,419,48380,620,6204,079,997212,721,363134,779,65059,940,72910,097,1585,187,786210,005,3232,716,04062,187,482$ 64,903,522Sources of RevenueSales and UseTaxes32.2%Non-grantStateFunding37%PropertyTaxes13.6%Grants &Co ntributio us15%Interest &Misc.2.2%Data Source: Statement of ActivitiesNote: This graph represents information on a government-wide basis using accrual basis accounting.differ from graphical information presented later in this report.Therefore, this graph will


Lafayette Parish School BoardLafayette, LouisianaMANAGEMENT'S DISCUSSION AND ANALYSISJune 30, 2004The largest source of revenues to the School System is non-grant state funding which accountsfor $81,888,214 or 37% of total revenue, >vith the vast majority of that amount generated by theState Minimum Foundation Program (MFP). The MFP is a complicated formula utilizing factorsand district information to allocate state funding to all school districts of the state in an effort toequalize funding gaps between rich and poor districts. This formula takes into account manyaspects of the district including, but not limited to, student population, the district's ability togenerate revenue or relative wealth and the district's effort in generating revenue through localtaxation. The Lafayette Parish School System is considered one of the more wealthy districts withlower-than-average tax rates. As a result, we receive less state funding per student than most ofthe other districts in Louisiana.The second largest source of revenues is sales and use taxes which account for 32.2% of totalrevenue. In late 2001 the voters of Lafayette Parish passed an additional l /2 cent sales taxdedicated to fund teacher salaries and benefits. Collection of this tax accounted for $16,552,925of the sales and use tax revenues reported. In the year of initial collection, this tax increase helpedincrease our MFP state funding by taking advantage of the formula's reward system for districtsthat increase funding efforts through local taxation.Functional ExpensesSupportServices28.6%Instruction64.1%Food &Community. ServicesInterest &FacilitiesAcquisition2.7%Data Source: Statement of ActivitiesNote: This graph represents information on a government-wide basis using accrual basis accounting. Therefore, this graph willdiffer from graphical information presented later in Ms report.The largest category of functional expenses on a government-wide basis is direct instruction.64.1% of our expenses go toward the education of students in regular education, special education


Lafayette Parish School BoardLafayette, LouisianaMANAGEMENT'S DISCUSSION AND ANALYSISJune 30, 2004and vocational education. These costs include classroom teacher and aide salaries and benefits,books, supplies and equipment used in instruction.The second largest category of expenses is support services at 28.6%. These costs include thesalaries and benefits of principals, assistant principals and counselors as well as instructionalsupervisors. This category also includes student transportation, business and computer servicesand related supplies and equipment. Support services will also include plant services like utilitiesand repairs and maintenance of buildings.FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDSThe School System uses funds to control and measure revenues and expenditures of a particularactivity or purpose to ensure and demonstrate compliance with finance-related legal requirements.The focus of governmental funds is to provide information on near-term inflows, outflows andbalances of resources that are available to spend. The information provided in this section isuseful in assessing the financing requirements of the School System at the end of the fiscal year.As of the end of the current fiscal year, the School System's governmental funds reported acombined ending fund balance of $36,844,820. About 61%, or $22,399,007, of this totalconstitutes reserved funds that are not available for new spending because it has already beencommitted to various obligations. An additional $4,156,771 of the total fund balance has beendesignated by the School Board for planned capital projects and various general fundcontingencies as outlined in note 17 of the Notes to the Basic Financial Statements. This leaves$10,289,042 of fund balance that is available for spending or as a source of funds available toguard against economic uncertainties and reductions in revenue.The following schedules present a summary of revenues and expenditures of governmental fundsfor the current fiscal year and the percentage of increase (decrease) from the prior year.Governmental funds' revenue sources increased in total by 4.08%. One of the largest percentageincreases is federal sources of 8.95% which was caused by new federal grants and increases infunding of current grants such as Special Education and the Title programs. The Ad-Valorem taxincrease of 4.95% is the result of new property being added to the property tax roles. The 9.17%increase in other parish sources was mainly due to an increase in E-rate funds.As illustrated in the charts on the following page, Governmental Funds' expenditures increased intotal by 4.56%. The largest percentage increase of 19.18% is in Transportation which was causedby the transportation costs of new programs designed to desegregate the school system and anincrease in the per mile amount paid to contract bus drivers.The largest percentage decrease of 50.63% is in Community Services and was caused by the reclassificationof the expenditures of a grant program for pre-school children to Special Programsin the current fiscal year. The 34.93% decrease in Facilities Acquisition & Construction was dueto a decrease in spending caused by a lack of funds available to address capital needs andrequests.


10Lafayette Parish School BoardLafayette, LouisianaMANAGEMENT'S DISCUSSION AND ANALYSISJune 30, 2004Governmental FundsRevenue Sources2004AmountPercentof TotalIncrease(Decrease)Prom 2003Percent ofIncrease(Decrease)Parish Sources:Ad Valorem TaxesSales TaxesOtherTotal Parish Sources$ 28,206,72171,284,1894,845,273104,336,18312.74% IB 1,330,36532.21% 864,7062.19% 407,10947.14% 2,602,1804.95%1.23%9.17%2.56%State Sources:EqualizationOtherTotal State Sources81,198,8446,761,92387,960,76736.69%3.06%39.74%3,767,500(78,222)3,689,2784.87%-1.14%4.38%Federal SourcesTotal Revenues29,038,222 13.12% 2,386,077 8.95%$ 221335,172 100.00% $ 8,677,535 4.08%Governmental FundsExpenditures2004AmountPercentof TotalIncrease(Decrease)From 2003Percent ofIncrease(Decrease)Instruction:Regular ProgramsSpecial Education ProgramsSpecial ProgramsOtherTotal Instruction85,712,26831,432,87212,080,37210,934,871140,160,38337.62% ! £ 4,816,74213.80% 1,567,8635.30% 860,2934.80% 641,19961.52% 7,886,0975.95%5.25%7.67%6.23%5.96%Support Services:Pupil SupportInstructional Staff SupportGeneral AdministrationSchool AdministrationBusiness ServicesOperations &. MaintanceStudent TransportationCentral ServicesTotal Support Services8,343,6469,655,6433,081,94310,041,1221,599,20614,468,16813,700,1251,613,96362,503,8163.66%4.24%1.35%4.41%0.70%6.35%6.01%0.71%27.44%326,97478,09381 ,97643,590156,8081,096,4252,204,943105,8514,094,6604.08%0.82%2.73%0.44%10.87%8.20%19.18%7.02%7.01%Food ServicesCommunity ServicesFacilities Acquisition & Const.Debt Service9,986,260244,9693,692,84411,233,7534.38%0.11%1.62%4.93%636,387(251,188)(1,982,616)(451,581)6.81%-50.63%-34.93%-3.86%Total Expenditures227,822,025 100.00% S 9,931,759 4.56%


Lafayette Parish School BoardLafayette, LouisianaMANAGEMENT'S DISCUSSION AND ANALYSISJune 30, 2004Ad ValoremTaxes13%Sales Taxes32%Federal Sources13%Other State3%Other Parish2%StateEqualization37%2003-2004 Governmental FundsSupportServices27%Food Services4%Debt Service &Other5%FacilitiesAcquisition &Construction2%Data Source: Statement of Revenues. Expenditures, and Changes in Fund BalancesNote: The. above graphs present information on a fund basis which uses modified accrual accounting. Therefore, this graph willdiffer from graphical information presented earlier in this report.


Lafayette Parish School BoardLafayette, LouisianaRevenues by Major SourceSales TaxesMiDionsSO $10 $20 $30 $40 $50 $60 $70 $80 $902002-2003 2003-2004Fiscal Comparison - Governmental Funds$50 $1502003-2004


Lafayette Parish School BoardLafayette, LouisianaMANAGEMENT'S DISCUSSION AND ANALYSISJune 30, 2004The General Fund is the chief operating fund of the School System. At the end of the currentfiscal year, unreserved fund balance was $9,841,684, while total fund balance was $13,683,815.Unreserved fund balance represents 6% of total General Fund expenditures. Key factors affectingthe General Fund are as follows:The fund balance of the School System's General Fund decreased by $2,251,186 duringthe current fiscal year.The minimum foundation program (MFP) revenues increased by $3,767,500. This wascaused by a combination of increased State funding of the program and an increase of236 students. Student count is a major component of the formula that is used to computethe amount of MFP funding received from the State.Total expenditures in the General Fund increased by $8,048,085 over the previous fiscalyear. This increase was caused by various factors including costs associated with theincreased student count, teacher and staff raises and increased transportation and utilitycosts.For the reader's information and convenience, a detailed breakdown of General Fund revenuesand expenditures is provided in the optional Other Supplementary Information section of thisdocument.The 2002 Sales Tax fund is a special revenue fund created to account for the revenues andexpenditures of a sales tax that was passed by voters in 2001 with actual collections beginning inJanuary of 2002. The tax is dedicated to teacher salaries and benefits. The emphasis of the tax isto fund teacher raises, targeted instructional counseling, teacher professional development, lowerclass size and provide tutoring and extra instruction to students. This fund experienced an excessof revenues over expenditures of $358,438 which contributed to an ending fund balance of$3,770,776. This is the first fiscal year the 2002 tax activity is shown as a separate specialrevenue fund. For the past two fiscal years the activity of the 2002 sales tax was shown as a partof the General Fund,The Sales Tax Revenue Bonds fund is a debt service fund that accumulates monies for thepayment of principal, interest and related expenses for School System debt that is paid by salestax revenues. This fund experienced a deficiency of revenues and other sources over expendituresand other uses of $37,794. A deficiency was budgeted for this fund to reduce the fund balance toa level more compatible with the needs of the fund. This fund experienced a 30% reduction ininterest income caused by reduced interest rates available in the market. Since this is a debtservice fund, budgetary comparisons are not included in Required Supplementary Information.However, a budgetary comparison with comparative actual amounts for the previous fiscal year isprovided in the optional section entitled Other Supplementary Information.Proprietary fundThe School System maintains one proprietary fund that is an internal service fund for the groupinsurance program. Last fiscal year this fund experienced a net income of over two milliondollars. However, this fiscal year rising health care and prescription costs caused the fund to


1/1Lafayette Parish School BoardLafayette, LouisianaMANAGEMENT'S DISCUSSION AND ANALYSISJune 30, 2004dollars. However, this fiscal year rising health care and prescription costs caused the fund toexperience a $439,879 operating loss. In addition, the fund was required to transfer $1,500,000 tothe General Fund for reimbursement of subsidies made in previous fiscal years by the GeneralFund. The ending balance in net assets decreased to $1,070,755. In an effort to eliminate anoperating loss next fiscal year, the plan will increase premiums by 10% effective January 1, 2005.As utilization of the plan increases along with the expected increase in health costs, managementwill continue to explore benefit design options as we face the challenge of weighing benefitchanges against a premium increase or subsidy from the General Fund.General Fund Budgetary HighlightsDifferences between the original budget and the final amended budget were $6,357,163, a 4% netincrease in expenditures and $2,161,518, a small 1% net increase in revenues. The majority of theexpenditure increase was to budget for staff raises of 2.5%. The raises were not included in theoriginal budget because of a delayed State calculation of the dollar amount required to be spenton raises for classroom teachers. Another area of increased budget was in Transportation tobudget for an increase in operational allowance granted to contract drivers by the Board.The School System experienced a negative budget variance in revenues of $995,286. A large partof this variance was caused by an overly optimistic projection of sales tax revenue growth.However, some of this negative variance was offset by a positive variance of $855,453 inexpenditures and $159,760 in other financing sources, leaving an insignificant net positivevariance of $19,927.CAPITAL ASSETS AND DEBT ADMINISTRATIONCapital AssetsThe School System's total investment in capital assets is $218,540,028 an increase of $2,164,331over last fiscal year. This investment includes land, buildings, furniture, equipment andconstruction in progress. The vast majority of this amount consists of buildings andimprovements of $194,871,123. Some of the improvements added this year consist of additionalportable buildings to accommodate the reduction in pupil/teacher ratio, the increase in studentpopulation and the addition of new educational programs. Other improvements include fundsspent to improve female athletic facilities in compliance with Title 9. By function over 92% ofour capital assets are used for pupil support. Additional information on the School System'scapital assets, including information on depreciation, can be found in note 6 of the Notes to theBasic Financial Statements section of this document.DebtIn December of 2003, the School System received loan proceeds of $3,250,000 from the issuanceof certificates of indebtedness. Much of the proceeds were used to purchase portable buildings toaccommodate the implementation of a lower teacher ratio and increased enrollment. Other itemspurchased with these funds were special education school buses and capital improvements onfemale athletic facilities in compliance with Title 9.


Lafayette Parish School BoardLafayette, LouisianaMANAGEMENT'S DISCUSSION AND ANALYSISJune 30, 2004In March of 2004, the School System took advantage of low interest rates available in the marketand issued $12,895,000 of public school refunding bonds and $2,810,000 of general obligationschool refunding bonds. The present value of net savings on the refunding was $181,144 for thegeneral obligation bonds and $964,403 on the public school bonds.The Lafayette Parish School Board Bonds are rated as follows:Moody's InvestorsServicesStandard & PoorsRatings ServiceG.O. Bonds / School District #1Sales Tax Revenue BondsA2A2A+In Louisiana, the limitation of the amount of general obligation debt the School System may issueis 35 percent of its total assessed valuation. The current debt limitation for the Lafayette ParishSchool System is $323,796,839, which is $321,827,942 more than the School System's generalobligation debt applicable to the limitation.The computation of the legal debt margin is disclosed in Table X of the Statistical Section of thisdocument. Additional and more detailed information on the School System's long term liabilitiescan be found in note 9 of the Notes to the Basic Financial Statements section of this document.ECONOMIC FACTORS AND NEXT YEAR'S BUDGETDuring the budget process economic activity and projections are reviewed. At the end of thisfiscal year the Lafayette Parish civilian labor force was 102,200 with an unemployment rate ofonly 3.3%. A local economist predicted an area job growth rate of 1.2% in 2005, which is abovethe State average. The local tax assessor was also contacted who predicted the growth in newproperty added to the rolls to be consistent with the rate of the previous year. These and otherfactors were considered in preparing the School System's budget for the 2004-2005 fiscal year.The unified budget for fiscal year 2004-2005 was adopted in August of 2004. The unified budget,which contained budgets of all funds, totaled expenditures of $269,399,744. The General Fundbudget was adopted with revenues equaling expenditures of $165,387,706. This represents aslight increase of less then 1% over last years General Fund final budget. An increase in theGeneral Fund budget of $800,000 for health care premiums was caused by a 10% rate increaseneeded to keep the self-funded insurance program financially stable. The increase in retirementcosts of $1,500,000 caused by a rise in the mandatory contribution rate for the school system wasthe largest item affecting the General Fund. These and other increased costs were offset byprojected increases in property tax revenues due to a re-assessment year and a 2% growth rate insales tax revenues. In addition, class size was raised by one student to save in excess of$2,600,000. Through a combination of additional revenues and difficult spending cuts,administration was able to present a balanced General Fund budget to the Board for adoption.


Lafayette Parish Schooi BoardLafayette, LouisianaMANAGEMENT'S DISCUSSION AND ANALYSISJune 30, 2004The Group Insurance Internal Service Fund budget for fiscal year 2004-2005 totaled $27,959,602of expenses with a budgeted net loss of $1,398,388. The ending fund balance is budgeted to be$69,077 at the end of fiscal year 2004-2005. The budget includes a 10% increase in premiumseffective January 1, 2005. The budgeted operating loss is due to a delay in implementation of thepremium increase. Management is aware of the potential financial issues related to the fund and isclosely monitoring the ongoing financial status of the fund to determine if a General Fundsubsidy will be necessary to cover the loss of revenue due to the delay in the premium increase.TAX RATES IN EFFECT FOR FISCAL YEAR 2004-2005The Tax rates that will be effective in the 2004-2005 fiscal year are as follows:REQUESTS FOR INFORMATIONProperty TaxesConstitutionalSpecial School TaxSpecial School ImprovementSchool OperationalSchool District #1- DebtTotalRate4.59 mills7.27 mills5.00 mills16.70 mills.72 mills34.28 millsSales and Use TaxesDebt and General Operations -1965 1.0%Dedicated to Six Priorities -1988 .5%Teacher Salaries and Benefits - 2002 .5%Total 2.0%This document is designed to provide a general overview of the Lafayette Parish School System'sfinances for all those with an interest in the finances of the system. Additional information aboutthe School System and individual schools within the system can be found by accessing our websiteat www.lpssonline.com. Questions concerning any of the information provided in this reportor requests for additional financial information should be addressed to:Matthew W. Dugas, C.P.A.Director of FinanceLafayette Parish School SystemPO Box 2158Lafayette LA 70502-2158


GOVERNMENT-WIDEFINANCIALSTATEMENTSLAFAYETTE PARISHSCHOOL SYSTEM


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaStatement of Net AssetsJune 30, 2004 and 2003Governmental Activities2004 2003ASSETSCash and interest-bearing depositsInvestmentsReceivables, netDue from other governmental agenciesPrepaid itemsInventoriesCapital assets:Land and construction in progressCapital assets, netTOTAL ASSETSLIABILITIESAccounts, salaries and other payablesDeferred revenueInterest payableLong-term liabilitiesDue within one yearDue in more than one yearTOTAL LIABILITIESNET ASSETSInvested in capital assets, net of related debtRestricted for:Teachers salaries and benefitsIncomplete contractsDebt serviceUnrestrictedB 49,394,43213,377,152613,8386,581,1531,980,7701,039,0286,326,895127,826,240207,139,50830,813,2864,257,5121,130,7429,291,580101,384,491146,877,61129,311,1553,770,776269,70312,712,74614,197,5175 17,683,03844,743,217151,2536,005,4972,072,1961,032,7135,925,053132,497,107210,110,07428,301,5411,883,8261,277,8968,134,568105,608,721145,206,55230,698,0033,412,338390,24012,687,39017,715,551TOTAL NET ASSETS$ 60,261,897 $ 64,903,522The accompanying notes are an integral part of the basic financial statements.17


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaStatement of ActivitiesFor the Year Ended June 30. 2004Functions/ProgramsGovernmental activities:instruction:Regular programsSpecial education programsVocational education programsOther instructional programsSpecial programsAdult and continuing education programsSupport services:Pupil support servicesInstructional staff support servicesGeneral administrationSchool administrationBusiness servicesPlant servicesStudent transportation servicesCentral servicesNon-instructional services:Food servicesCommunity service programsFacilities acquisition and constructionInterest on long-term debtTotal governmental activitiesProgram RevenuesOperatingCharges for Grants andExpenses Services Contributions$ 88,636,814 $ - $ 903.02132,516.128 267,597 3.202.4733,729,625 - 488,0806,196,146 - 1,295,96612,489,206 56.416 12,620,1611,377,157 - 1.403,6258,623,663 - 889,9719,977,291 - 3,812,4063,184,707 - 11.99610,384,373 - 61,5331,654,045 - 286,40714.962.185 - 128.62214,180,904 - 816.1711.668,291 - 123.09710.121.878 1.694.424 7.261.509253.1211,156,6024,944.930$226,057,066 $ 2.0 1 8.437 $ 33,305,038Net (Expense)Revenue andChanges in Net AssetsGovernmentalActivities$ (87,733,793)(29,046,058)(3,241,545)(4,900,180)187,37126,468(7,733,692)(6,164,885)(3,172,711)(10,322,840)(1,367,638)(14,833,563)(13,364.733)(1,545,194)(1,165,945)(253,121)(1,156,602)(4,944,930)$(190,733,591)General revenues:Taxes:Property taxes, levied for general purposesProperty taxes, levied for debt serviceSales and use taxes, levied for general purposesSales and use taxes, levied for debt serviceState revenue sharingGrants and contributions not restricted to specificprograms:Slate source - Minimum Foundation ProgramState source - salary increaseState source - PIPSInterest and investment earningsMiscellaneousTotal general revenuesChange in net assetsNet assets - July 1.2003Net assets - June 30, 200427,579,650627,07161,780.5529.503,6371,805,73781,198,84420,833668,537732,6052,174.500186,091,966(4,641.625)64,903,522$ 60.261,897The accompanying notes are an integral part of the basic financial statements.


FUND FINANCIALSTATEMENTSLAFAYETTE PARISHSCHOOL SYSTEM


ASSETSCash and interest-bearing depositsInvestmentsReceivables -AccountsNotes receivableAccrued interestDue from other fundsDue from other governmental agenciesOtherPrepaid itemsInventories, at costTotal assetsLIABILITIES AND FUND BALANCESLiabilities:Accounts payableContracts payableRetainage payableAccrued salaries payableClaims payableDue to other fundsDue to other governmental unitsDeferred revenueAccrued liabilitiesNotes payableDeposits payableTotal liabilitiesFund balances-Reserved for -Other purposesDebt serviceTotal fund balances reservedUnreserved -Designated:GeneralCapital ProjectsUndesignated, reported in major fundsUndesignated, reported in nonmajor funds:Special RevenueCapital ProjectsTotal fund balances unreservedTotal fund balancesLAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaBalance Sheet - Governmental FundsJune 30, 2004With Comparative Totals for June 30, 2003General$30,959,183108,401540,565-1,32810,044,246221,493-1,977,052362,430$44,214,698$ 2,599,506--14,202,09067,2643,574,786-61,4689,967,55240,43617,78130,530,8833,842,131-3,842,1312,050,012-7,791,672_-9,841,68413,683,8152002SalesTax$1,598,5673,442,090.--1,347,545----$6,388,202$----2,617,426-----2,617,4263,770,776-3,770,776-.-.3,770,776Sales TaxRevenueBondsOtherGovernmental$ 2,678,064 $ 8,321,3699,541,334 285,327-40,436-785,332 3,683,8326,359,66011,1383.718676,598$13,004,730 $19,382,078$ - $ 502,555227,13158,712--9,638,81318.3852.550,983---12,996.579942,61213,004,730 838,75813,004,730 1,781,370-2,106,7592,104,895392,4754,604,12913,004,730 6,385,4992004$43,557.18313.377,152540,56540,4361,32815,860,9556.581,15311,1381,980,7701,039,028582,989,708$ 3,102,061227.13158,71214,202.09067.26415,831.02518.3852,612,4519,967.55240.43617.78146,144,8888,555,51913,843,48822,399.0072,050,0122,106,7597,791 ,6722,104,895392.47514.445,81336,844,820Totals2003$14,724,27440,771,469107,78675,81898313,439,2286,005,4978,8322,072,1961,032,713$78,238,796J 2,344,625352,825127,56213,477,42834,32713.409.9564,022304,3909,511,79575,81817,31639,660,0648,426,00213,965,28622,391,2881,822,80)2,912,44711,068,850105,842277,50416.187,44438,578,732Total liabilities and fund balances $44,214,698 $6,388.202 $13,004,730 $19,382,078 $82,989,708 $78.238,796The accompanying notes are an integral pan of the basic financial statements.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaReconciliation of the Governmental Funds Balance Sheetto the Statement of Net AssetsJune 30, 2004Total fund balances for governmental funds at June 30, 2004Cost of capital assets at June 30, 2004;Less: Accumulated depreciation as of June 30, 2004:BuildingsMovable property$ 218,540,028$ 36,844,820(74,377,827)(10,009,066) 134,153,135Elimination of interfund assets and liabilitiesDue from other fundsDue to other funds$ 15,860,955(15,860,955)Long-term liabilities at June 30,2004:Bonds and certificates of indebtedness payableCapital lease payableInsurance claims payableCompensated absences payableAccrued interest payable$(104,139,577)(702,403)(3,188,654)(2,645,437)(1,130,742) (111,806,813)Net assets of Group Insurance Internal Service Fund 1,070,755Net assets at June 30, 2004 $ 60,261,897The accompanying notes are an integral part of the basic financial statements.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaGovernmental FundsStatement of Revenues. Expenditures and Changes in Fund BalancesFor the Year Ended June 30, 2004With Comparative Totals tor the Year Ended June 30, 2003REVENUESParish sources:Ad valorem taxesSales taxesOtherTotal parish sourcesState sourcesFederal sourcesTotal revenuesGeneral$ 27,579,65044,701,4392,591,04074,872,12984,045,504151,618159,069,2512002SalesTax$16,552,92577,12216,630,047--16,630,047$Sales TaxRevenueBonds9.503,637139,9209,643,557--9.643,557OtherGovernmental$ 627,071526,1882,037,1913,190,4503,915,26328,886,60435,992,3172004$28,206,72171,284,1894,845,273104,336,18387,960,76729,038,222221,335,172Total2003$ 26,876,35670,419.4834,438.164101.734.00384,271,48926,652,145212,657,637EXPENDITURESCurrent:Instruction -Regular programsSpecial education programsVocational education programsOther instructional programsSpecial programsAdult and continuing education programsSupport services -Pupil support servicesInstructional staff support servicesGeneral administrationSchool administrationBusiness servicesOperation and maintenance of plant servicesStudent transportation servicesCentral servicesNon-instructional services -Food servicesCommunity service programsFacilities acquisition and constructionDebt service:Principal retirementInterest and fiscal chargesTotal expenditures71,887,70226,140,4612,768,4184,626,035213,88922,8987,092,0876,114,8702,963,8359.979.5891,312,79913,928,00313,251,5001,490,866324,189244,9691,059,077_37,632163,458,81913,099,1222,092,863351,49511,410--355.195291,34170.183-----.--.-16,271,609-------3,400---•----4.904,0444.573,9079,481,351725,4443,199,548488,0801,356,46411,866,4831,310,072896,3643,249,43244,52561,533286,407540.165448,625123,0979,662,071-2,633,7671,246,777471,39338,610,24785,712,26831,432,8723,607,9935,993,90912,080,3721,332,9708,343,6469,655,6433,081,94310,041,1221,599,20614,468,16813,700,1251,613,9639,986,260244,9693,692,8446,150,8215,082,932227,822,02680,895,52629,865.0093.695.3485.461,53511,220,0791.136,7898.016.6729,577,5502.999.9679.997.5321,442,39813,371.7431 1 ,495, 1 821,508,1129,349,873496,1575,675,4605,982,2315,703,103217,890,266Excess (deficiency) of revenuesover expenditures(4,389,568)358,438162,206(2,617,930)(6,486,854)(5,232,629)OTHER FINANCING SOURCES (USES)Proceeds from the issuance of debtTransfer to escrow agentTransfers inTransfers outTotal other financing sources (uses)-3,854,040(1,715,658)2,138,382---_13.043,293(13.043,293)-(200,000)(200,000)6,064,492(2,805,000)1,909,108(2,354,040)2,814,56019,107,785(15,848,293)5,763,148(4,269,698)4,752,9424.350,000(3,025,000)2,892,584(2,899,134)1,318,450Excess (deficiency) of revenuesand other sources overexpenditures and other uses(2,251,186)358,438(37,794)196,630(1,733,912)(3,914,179)FUND BALANCES, BEGINNING15,935,0013,412,33813.042,5246,188,86938,578,73242,492,91 1FUND BALANCES, ENDING$ 13,683,815$3,770,776$ 1 3,004,730$ 6,385,499$ 36,844,820$38,578,732The accompanying notes are an integral part of the basic financial statements.


7?LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaReconciliation of the Statement of Revenues, Expenditures, andChanges in Fund Balances of Governmental Fundsto the Statement of ActivitiesFor the Year Ended June 30, 2004Total net change in fund balances for the year ended June 30, 2004 per Statementof Revenues, Expenditures and Changes in Fund Balances $(1,733,912)Add: Facilities acquisition, construction costs and equipment which are consideredas expenditures on Statement 2,742,275Less: Depreciation expense for year ended June 30, 2004 (7,011,300)Add: Bond principal retirement considered as an expenditure on Statement 6,150,821Add: Excess of compensated absences used over compensated absences earned 149,868Add: Excess of insurance claims paid over claims incurred 35,173Add: Difference between interest on long-term debt on modified accrual basis versusinterest on long-term debt on accrual basis 138,002Less: Net loss of the Group Insurance Internal Service Fund (1,853,060)Less: Proceeds from issuance of certificates of indebtedness (19,107,785)Add: Payment to escrow to refund debt 15,848,293Total change in net assets for the year ended June 30, 2004 perStatement of Activities $(4,641,625)The accompanying notes are an integral part of the basic financial statements.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaProprietary Fund - Group Insurance Internal Service FundStatement of Net AssetsJune 30, 2004 and 2003Governmental Activities-Group Insurance Fund2004 2003ASSETSCurrent assets:Cash and interest-bearing depositsInvestmentsReceivables -Accounts$5,837,24960,807$2,958,7643,971,74833,652Total current assets $5,898,056 $6,964,164LIABILITIESCurrent liabilities:Accounts payableClaims payableDue to other fundsDeferred revenueTotal current liabilities$ 34,2903,118,02029,9301,645,0614,827,301$ 30,9912,400,65029,2721,579,4364,040,349NET ASSETSNet assets:Unrestricted 1,070,755 2,923,815Total liabilities and net assets $5,898,056 $6,964,164The accompanying notes are an integral part of the basic financial statements.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaProprietary Fund - Gr.oup Insurance Internal Service FundStatement of Revenues, Expenses and Changes in Fund Net AssetsFor the Years Ended June 30, 2004 and 2003Governmental Activities-Group Insurance Fund20042003OPERATING REVENUECharges for services$25,609,347$24,981,249OPERATING EXPENSESContractual servicesPremium paymentsClaim paymentsOther operating expensesTotal operating expenses999,5611,896,28722,993,750159,62826,049,226839,0341,739,55319,805,947140,27422,524,808OPERATING INCOME (LOSS)NONOPERATING REVENUEInterest earned on interest-bearing deposits and investments(439,879)80,2692,456,44163,726INCOME (LOSS) BEFORE TRANSFERS(359,610)2,520,167TRANSFERS IN (OUT)Transfer to General FundTransfer from General FundTotal transfers in (out)(1,500,000)6,550(1,493,450)6,5506,550NET INCOME (LOSS)NET ASSETS, BEGINNING(1,853,060)2,923,8152,526,717397,098NET ASSETS, ENDING$ 1,070,755$ 2,923,815The accompanying notes are an integral part of the basic financial statements.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaProprietary Fund - Group Insurance Internal Service FundStatement of Cash FlowsFor the Years Ended June 30, 2004 and 2003Cash flows from operating activities:Receipts from interfund services providedClaim paymentsPayments to suppliersPayments to employeesNet cash provided by operating activitiesGovernmental Activities-Group Insurance Fund20042003$25,647,817(22,276,378)(2,969,875)(82,304)319,260$25,037,001(19,865,076)(2,632,872)(77,517)2,461,536Cash flows from noncapital financing activities:Cash received from other fundsTransfer to General FundTransfer from General FundNet cash provided (used) by noncapital financing activitiesCash flows from investing activities:Interest on investmentsNet increase (decrease) in cash and cash equivalentsCash and cash equivalents, beginning of period658(1,500,000)6,550(1,492,792)80,269(1,093,263)6,930,512711,2706,550717,82063,7263,243,0823,687,430Cash and cash equivalents, end of periodReconciliation of operating income (loss) to net cash provided byoperating activities:Operating income (loss)Adjustments to reconcile operating income (loss) to net cash providedby operating activities:Changes in current assets and liabilities:(Increase) decrease in accounts receivableIncrease in accounts payableIncrease (decrease) in claims payableIncrease in deferred revenueNet cash provided by operating activities$ 5,837,249 $ 6,930,512$ (439,879) $ 2,456,441$(27,155)3,299717,37065,625319,26012,9388,472(59,129)42,814$ 2,461,536(continued)


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaProprietary Fund - Group Insurance Internal Service FundStatement of Cash Flows (Continued)For the Years Ended June 30, 2004 and 2003Governmental Activities-Group Insurance Fund2004 2003Reconciliation of cash and cash equivalents per statementof cash flows to the balance sheet:Cash and cash equivalents, beginning of period -Cash and interest-bearing deposits $ 2,958,764 $ 1,751,295Investments, at cost 3,971,748 1,936,135Total cash and cash equivalents 6,930,512 3,687,430Cash and cash equivalents, end of period -Cash and interest-bearing deposits 5,837,249 2,958,764Investments, at cost - 3,971,748Total cash and cash equivalents 5,837,249 6,930,512Net increase (decrease) $(1,093,263) $3,243,082The accompanying notes are an integral part of the basic financial statements.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaStatement of Fiduciary Net AssetsJune 30, 2004With Comparative Totals for June 30, 2003ASSETSAgencyFundsPrivatePurposeTrust Funds 2004Totals2003Cash and interest-bearing depositsInvestments$ 8,834,119320,348$ - $ 8,834,11939,921 360,269$4,522,4274,769,474Total assets9,154,46739,921 9,194,3889,291,901LIABILITIESDue to other governmental unitsSchool activity funds payableTotal liabilities5,952,8883,201,5799,154,4675,952,8883,201,5799,154,4676,214,8033,037,5209,252,323NET ASSETSRestricted for specific purposes$$ 39,921 $ 39,921$ 39,578The accompanying notes are an integral part of the basic financial statements.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaStatement of Changes in Fiduciary Net AssetsPrivate Purpose Trust FundsFor the Years Ended June 30.2004 and 20032004 2003ADDITIONSInterest383 $ 575DEDUCTIONSSpecial programs 40 74Change in net assetsNet assets - beginning343 50139,578 39,077Net assets - ending $39,921 $39,578The accompanying notes are an integral part of the basic financial statements.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements(1) Summary of Significant Accounting PoliciesThe accompanying financial statements of the Lafayette Parish School Board (School Board)have been prepared in conformity with generally accepted accounting principles (GAAP) as appliedto governmental units. GAAP includes all relevant Governmental Accounting Standards Board(GASB) pronouncements. The accounting and reporting framework and the more significantaccounting policies are discussed in subsequent subsection of this note.A. Financial Reporting EntityThe School Board was created by Louisiana Revised Statute (LRS-R.S.)17:51 to provide public education for the children within Lafayette Parish. TheSchool Board is authorized by LRS-R.S. 17:81 to establish policies and regulationsfor its own government consistent with the laws of the State of Louisiana and theregulations of the Louisiana Board of Elementary and Secondary Education. TheSchool Board is comprised of nine members who are elected from nine districts forterms of four years.The School Board operates 41 schools within the parish with a totalenrollment of 30,038 pupils. In conjunction with the regular educational programs,some of these schools offer special education and/or adult education programs. Inaddition, the School Board provides transportation and school food services for thestudents.For financial reporting purposes, the School Board includes all funds andactivities for which the School Board exercises financial accountability. Because theSchool Board members are independently elected and are solely accountable forfiscal matters, which include (1) budget authority, (2) responsibility for fundingdeficits and operating deficiencies, and (3) fiscal management for controlling thecollection and disbursement of funds, the School Board is a separate governmentalreporting entity, primary government.B. Basis ofJVesentatiojiGovernment-Wide Financial Statements (GWFS)The statement of net assets and the statement of activities display informationabout the School Board, the primary government, as a whole. They include all fundsof the reporting entity, which are considered to be governmental activities. TheSchool Board's internal service fund is a governmental activity. Internal service fundactivity iy eliminated to avoid "doubling up" revenues and expenses. Fiduciary fundsare not included in the GWFS. Fiduciary funds are reported only in the Statement ofFiduciary Net Assets at the fund financial statement level.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)The statement of activities presents a comparison between direct expensesand program revenues for each function of the School Board's governmentalactivities. Direct expenses are those that are specifically associated with a program orfunction and, therefore, are clearly identifiable to a particular function. Programrevenues include (a) fees and charges paid by the recipients of goods or servicesoffered by the programs, and (b) grants and contributions that are restricted tomeeting the operational or capital requirements of a particular program. Revenuesthat are not classified as program revenues, including all taxes, are presented asgeneral revenues.Fund Financial StatementsThe accounts of the School Board are organized and operated on the basis offunds. A fund is an independent fiscal and accounting entity with a separate set ofself-balancing accounts. Fund accounting segregates funds according to theirintended purpose and is used to aid management in demonstrating compliance withfinance-related legal and contractual provisions. The minimum number of funds ismaintained consistent with legal and managerial requirements. Fund financialstatements report detailed information about the School Board.The various funds of the School Board are classified into three categories:governmental, proprietary, and fiduciary. The emphasis on fund financial statementsis on major funds, each displayed in a separate column. A fund is considered major ifit is the primary operating fund of the School Board or meets the following criteria:a. Total assets, liabilities, revenues, or expenditures/expenses ofthat individual governmental or enterprise fund are at least 10percent of the corresponding total for all funds of that categoryor type; andb. Total assets, liabilities, revenues, or expenditures/expenses ofthe individual governmental or enterprise fund are at least 5percent of the corresponding total for all governmental andenterprise funds combined.The School Board reports the following major governmental funds:The General Fund is the general operating fund of the School Board. Itaccounts for all financial resources except those required to be accounted for in otherfunds.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)The 2002 Sales Tax Special Revenue Fund accounts for the collection of aone-half cent sales tax dedicated to paying the costs of salaries and related benefits ofclassroom teachers.The Sales Tax Revenue Bond Debt Service Fund accounts for theaccumulated resources for and the payment of the sales tax revenue bonds principal,interest, and related costs.Additionally, the School Board reports the following fund types:Special Revenue FundsSpecial revenue funds account for the proceeds of specific revenue sourcesthat are legally restricted to expenditures for specified purposes. These funds accountfor the revenues and expenditures related to federal, state and local grant andentitlement programs.Debt Service FundsDebt service funds, established to meet requirements of bond ordinances, areused to account for the accumulation of resources for and the payment of generallong-term debt principal, interest, and related costs.Capital Projects FundsCapital projects funds account for financial resources to be used for theacquisition or construction of major capital facilities (other than those financed by theproprietary funds). Separate capital projects funds are maintained to account for aportion of the proceeds of a 1% sales tax, various sales tax revenue bond proceedsand other revenue sources.Proprietary Funds -Proprietary funds are used to account for ongoing organizations and activitiesthat are similar to those often found in the private sector. The measurement focus isbased upon determination of net income, financial position, and cash flows. Thefollowing is the School Board's proprietary fund type:Internal Service FundThe Internal Service Fund is used to account for the accumulation ofresources for and the payment of benefits by the School Board's group self-insuranceprogram.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)Proprietary funds distinguish operating revenues and expenses fromnonoperating items. Operating revenues are derived from contributions made fromthe employer and employees. These revenues are planned to match: (1) expenses ofinsurance premiums in excess of self-insurance amounts; (2) actual claims andestimated liabilities for claims incurred but not yet reported at year-end, and (3)operating expenses. All revenues and expenses not meeting this definition arereported as nonoperating revenues and expenses.Fiduciary Funds -Fiduciary funds account for assets held by the government in a trusteecapacity or as an agent on behalf of other funds within the School Board. The fundsaccounted for in this category by the School Board are the agency funds. The agencyfunds are as follows:School Activity Fund - accounts for assets held by the School Board as anagent for the individual schools and school organizations.Sales Tax Fund - accounts for monies collected on behalf of other taxingauthorities within the parish.Private-purpose trust funds — accounts for the receipt and distribution ofcontributions from private sources restricted for scholarships, student loans, athletics,and educational assistance.C. Measurement Focus/ Basis of AccountingMeasurement focus is a term used to describe "which" transactions arerecorded within the various financial statements. Basis of accounting refers to"when" transactions are recorded regardless of the measurement focus applied.Measurement FocusOn the government-wide statement of net assets and the statement ofactivities, the governmental activities are presented using the economic resourcesmeasurement focus as defined in item b. below. In the fund financial statements, the"current financial resources" measurement focus or the "economic resources"measurement focus is used as appropriate:a. All governmental ftmds utilize a "current financial resources"measurement focus. Only current financial assets and liabilities aregenerally included on their balance sheets. Their operatingstatements present sources and uses of available spendable financialresources during a given period. These funds use fund balance astheir measure of available spendable financial resources at the end ofthe period.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)b. The proprietary (internal service) fund and the private purpose trustfunds utilize an "economic resources" measurement focus. Theaccounting objectives of this measurement focus are thedetermination of operating income, changes in net assets (or costrecovery), financial position, and cash flows. All assets and liabilities(whether current or noncurrent) associated with their activities arereported. Proprietary fund equity is classified as net assets.Basis of Accounting[n the government-wide statement of net assets and statement of activities,the governmental activities are presented using the accrual basis of accounting.Under the accrual basis of accounting, revenues are recognized when earned andexpenses are recorded when the liability is incurred or economic asset used.Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange andexchange-like transactions are recognized in accordance with the requirements ofGASB Statement No. 33 "Accounting and Financial Reporting for NonexchangeTransactions." The effect of interfund activity has been eliminated from thegovernment-wide financial statements.Program revenuesProgram revenues included in the Statement of Activities are derived directlyfrom the program itself or from parties outside the School Board's taxpayers orcitizenry, as a whole; program revenues reduce the cost of the function to be financedfrom the School Board's general revenues.Allocation of indirect expensesThe School Board reports all direct expenses by function in the Statement ofActivities. Direct expenses are those that are clearly identifiable with a function.Indirect expenses of other functions are not allocated to those functions, but arereported separately in the Statement of Activities. Depreciation expense isspecifically identified by function and is included in the direct expense of eachfunction. Interest on general long-term debt is considered an indirect expense and isreported separately on the Statement of ActivitiesIn the fund financial statements, governmental funds are presented on themodified accrual basis of accounting. Under this modified accrual basis ofaccounting, revenues are recognized when "measurable and available." Measurablemeans knowing or being able to reasonably estimate the amount. Available meansbeing collectible within the current period or within 60 days after year-end.Expenditures (including facilities acquisition and construction) are recorded when therelated fund liability is incurred, except for general obligation bond principal andinterest which are reported when due. The governmental funds use the followingpractices in recording revenues and expenditures:


1/1LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)RevenuesFederal and state entitlements (unrestricted grants-in-aid, which include stateequalization and state revenue sharing) are recorded when available and measurable.Expenditure-driven federal and state grants, which are restricted as to the purpose ofthe expenditures, are recorded when the reimbursable expenditures have beenincurred.Ad valorem taxes are recorded in the year the taxes are due and payable. Advalorem taxes are assessed in November, by the Parish Assessor, based on theassessed value and become due on December 31 of each year. The taxes becomedelinquent on January 1. An enforceable lien attaches to the property as of January 1.The taxes are generally collected in December, January, and February of the fiscalyear. Property tax revenues are accrued at fiscal year-end to the extent that they havebeen collected but not received by the Lafayette Parish Tax Collector's Office. Suchamounts are measurable and available to finance current operations.Interest income on time deposits and revenues from rentals, leases, androyalties are recorded when earned.Board.Sales and use tax revenues are recorded in the month collected by the SchoolExpendituresSubstantially all other revenues are recorded when received.Salaries are recorded as expenditures when incurred. Nine-month employeesalaries are incurred over a nine-month period but paid over a twelve-month period.Compensated absences are recognized as expenditures when leave is actuallytaken or when employees (or heirs) are paid for accrued leave upon retirement ordeath.Commitments under construction contracts are recognized as expenditureswhen earned by the contractor.Principal and interest on general long-term obligations are not recognizeduntil due.All other expenditures are generally recognized under the modified accrualbasis of accounting when the related fund liability is incurred.The proprietary, agency and the private purpose trust funds utilize the accrualbasis of accounting. Under the accrual basis of accounting, revenues are recognizedwhen earned and expenses are recorded when the liability is incurred or economicasset used.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)Other Financing Sources (Uses)Transfers between funds that are not expected to be repaid (or any othertypes, such as capital lease transactions, sales of capital assets, debt extinguishments,long-term debt proceeds, et cetera) are accounted for as other financing sources(uses). These other financing sources (uses) are recognized at the time theunderlying events occur.Deferred RevenuesDeferred revenues arise when resources are received before the School Boardhas a legal claim to them, as when grant monies are received prior to the incurrenceof qualifying expenditures or when tuition is received in advance of thecommencement of classes.In subsequent periods, when the School Board has a legal claim to theresources, the liability for deferred revenue is removed from the balance sheet andthe revenue is recognized. The value of commodities provided by the federalgovernment to the School Lunch Program is also included in deferred revenue untilconsumed.D. Assets. Liabilities and EquityCash and interest-bearing depositsFor purposes of the Statement of Net Assets, cash and interest-bearingdeposits include all demand accounts, savings accounts, and certificates of depositsof the School Board. For the purpose of the proprietary fund statement of cash flows,"cash and cash equivalents" include all demand and savings accounts, and certificatesof deposit or short-term investments with an original maturity of three months or lesswhen purchased.InvestmentsUnder state law the School Board may deposit funds with a fiscal agentorganized under the laws of the State of Louisiana, the laws of any other state in theunion, or the laws of the United States. The School Board may invest in UnitedStates bonds, treasury notes and bills, government backed agency securities, orcertificates and time deposits of state banks organized under Louisiana law andnational banks having principal offices in Louisiana. In addition, local governmentsin Louisiana are authorized to invest in the Louisiana Asset Management Pool(LAMP), a nonprofit corporation formed by the State Treasurer and organized underthe laws of the State of Louisiana, which operates a local government investmentpool. At June 30, 2004, all of the School Board's investments are in LAMP, whichare stated at amortized cost.35


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)Interfund receivables and payablesDuring the course of operations, numerous transactions occur betweenindividual funds that may result in amounts owed between funds. Those related togoods and services type transactions are classified as ''due to and from other funds."Short-term interfund loans are reported as 'interfund receivables and payables."Long-term interfund loans (noncurrent portion) are reported as "advances from and toother funds." Interfund receivables and payables between funds within governmentalactivities are eliminated in the Statement of Net Assets.ReceivablesIn the government-wide statements, receivables consist of all revenuesearned at year-end and not yet received. Major receivable balances for thegovernmental activities include ad valorem taxes, sales and use taxes, and federal andstate grants.Prepaid ItemsPayments made to vendors for services that will benefit periods beyond June30, 2004, are recorded as prepaid items.InventoriesThe cost of inventories is recorded as expenditures when consumed ratherthan when purchased. Reserves are established for an amount equal to the carryingvalue of inventories.Inventory of the General Fund consists of school supplies purchased whichare valued at cost (first-in, first-out).Inventory of the School Food Service Special Revenue Fund consists of foodpurchased by the School Board and commodities granted by the United States Foodand Consumer Service through the Louisiana Department of Agriculture. Thecommodities are recorded as revenues and expenditures when consumed.Commodities inventory at year-end is recorded as deferred revenue. All inventoryitems purchased are valued at cost (first-in, first-out), and donated commodities areassigned values based on information provided by the United States Department ofAgriculture.Capital AssetsThe accounting treatment over property, plant and equipment (capital assets)depends on whether they are reported in the government-wide or fund financialstatements.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)In the government-wide financial statements, capital assets are capitalized athistorical cost, or estimated historical cost if actual is unavailable, except for donatedassets, which are recorded at their estimated fair value at the date of donation. TheSchool Board maintains a threshold level of $5,000 or more for capitalizing capitalassets.Depreciation of all exhaustible capital assets is recorded as an allocatedexpense in the Statement of Activities, with accumulated depreciation reflected in theStatement of Net Assets. Depreciation is provided over the assets' estimated usefullife using the straight-line method of depreciation. The range of estimated useful livesby type of asset is as follows:Buildings and improvementsFurniture and equipment20 - 40 years5-15 yearsThe cost of normal maintenance and repairs that do not add to the value ofthe asset or materially extend asset lives are not capitalized.In the fund financial statements, capital assets used in governmental fundoperations are accounted for as facilities acquisition and construction expenditures ofthe governmental fund upon acquisition.The School Board does not possess any material amounts of infrastructurecapital assets, such as sidewalks and parking lots. Amounts expended for such itemsprior to June 30, 2001 were considered to be part of the cost of buildings andimprovements. In the future, if such items are built or constructed, and appear to bematerial in cost compared to all capital assets, they will be capitalized anddepreciated over their estimated useful lives as with all other depreciable capitalassets.Compensated AbsencesTeachers and other nine-month employees accrue ten days sick leave peryear, which may be accumulated. Upon retirement, unused accumulated sick leaveof up to twenty-five days is paid to employees at the employee's current rate of pay,and accumulated sick leave in excess of twenty-five days is used in the retirementbenefit computation as earned service.All twelve-month employees earn from 12 to 18 days of both annual and sickleave each year depending on length of service with the School Board. Uponretirement or death, unused accumulated sick leave of up to 25 days is paid toemployees at the employee's current rate of pay and accumulated sick leave in excessof 25 days is used in the retirement benefit computation as earned service. Annualleave is credited at the end of each fiscal year and must be used in the followingfiscal year or is lost.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)Any employee with a teaching certificate is entitled, subject to approval bythe School Board, to one semester of sabbatical leave after three years of continuousservice or two semesters of sabbatical leave after six or more years of continuousservice. Due to its restrictive nature, sabbatical leave is accounted for as anexpenditure in the period taken and no liability is recorded in advance of thesabbatical.For fund financial statements, vested or accumulated sick leave that isexpected to be liquidated with expendable available financial resources is reported asan expenditure and a current fund liability of the governmental iund that will pay it.In the government-wide statements, amounts of vested or accumulated sick leave thatare not expected to be liquidated with expendable available financial resources arerecorded as long-term debt. No expenditure is reported for these amounts-No liability is recorded for nonvesting accumulating rights to receivevacation pay. A liability has been recorded for up to 25 days of accumulated sickleave for those employees eligible for retirement as of June 30, 2004.At June 30, 2004, employees of the School Board have accumulated andvested $2,645,437 of compensated absence benefits payable. Salary relatedpayments, including the School Board's share of social security taxes, medicare taxesand retirement benefits are not accrued since they are not applicable to sick leavepaid upon retirement.Long-term debtThe accounting treatment of long-term debt depends on whether the assetsare used in governmental fund operations or proprietary fund operations and whetherthey are reported in the government-wide or fund financial statements. Since theSchool Board's only Proprietary Fund is the Self-Insurance Internal Service Fund,which has no long-term debt, all School Board long-term debt is used ingovernmental fund operations.All long-term debt to be repaid from governmental resources are reported asliabilities in the government-wide statements. The long-term debt consists primarilyof general obligation bonds, sales tax bonds, lease revenue bonds, and capital leasepayable. For government-wide reporting, the costs associated with the bonds arerecognized over the life of the bond. As permitted by GASB Statement No. 34, theamortization of the costs of bonds will be amortized prospectively from the date ofadoption of GASB Statement No. 34.Long-term debt for governmental funds is not reported as liabilities in thefund financial statements. The debt proceeds are reported as other financing sourcesnet of the applicable premium or discount and payment of principal and interestreported as expenditures. For fund financial reporting, issuance costs, even ifwithheld from the actual net proceeds received, are reported as debt serviceexpenditures.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)Equity ClassificationsIn the government-wide statements, equity is classified as net assets anddisplayed in three components:a. Invested in capital assets, net of related debt - Consists of capitalassets including restricted capital assets, net of accumulateddepreciation and reduced by the outstanding balances of any bonds,mortgages, notes, or other borrowing that are attributable to theacquisition, construction, or improvement of those assets.b. Restricted net assets - Consists of net assets with constraints placedon the use either by (I) external groups, such as creditors, grantors,contributors, or laws or regulations of other governments; or (2) lawthrough constitutional provisions or enabling legislation.c. Unrestricted net assets - All other net assets that do not meet thedefinition of "restricted" or "invested in capital assets, net of relateddebt."In the fund financial statements, governmental fund equity is classified asfund balance. Fund balance is further classified as reserved and unreserved, withunreserved further split between designated and undesignated. Proprietary fundequity is classified the same as in the government-wide statements.E. Budget PracticesThe proposed budget for 2004 was completed and made available for publicinspection at the School Board office prior to the required public hearing held forsuggestions and comments from taxpayers. The School Board formally adopted theproposed fiscal year 2004 budget on August 20, 2003. In accordance withR.S.17:88(A), parish school boards must adopt the budget no later than Septemberfifteenth of each year. The budget, which included proposed expenditures and themeans of financing them, for the General, Special Revenue, Debt Service and CapitalProjects Funds, was published in the official journal ten days prior to the publichearing.The budgets for the General, Special Revenue, and Debt Service Funds forthe fiscal year 2004 were prepared on the modified accrual basis of accounting,consistent with generally accepted accounting principles (GAAP). The CapitalProjects Funds' budgets were prepared on a project basis and, therefore, are notpresented.Formal budgetary accounts are integrated into the accounting system duringthe year as a management control device, including the recording of encumbrances.With the exception of the multi-year projects in the capital project funds,appropriations lapse at the end of each fiscal year.39


40LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)The level of control over the budget is exercised at the function or programlevel for the General, Special Revenue, and Debt Service Funds, and at the projectlevel for the Capital Projects Funds. The Superintendent and/or assistantsuperintendents are authorized to transfer budget amounts within each fund; however,any supplemental appropriations that amend the total expenditures of any fundrequire School Board approval. As required by state law, when actual revenueswithin a fund are failing to meet estimated annual budgeted revenues by five percentor more, and/or actual expenditures within a fund are exceeding estimated budgetedexpenditures by five percent or more, a budget amendment to reflect such changes isadopted by the School Board in an open meeting. Budgeted amounts included in thefinancial statements include the original adopted budget and all subsequentamendments. Amendments to the budget were not material.F. EncumbrancesEncumbrance accounting, under which purchase orders, contracts and othercommitments for the expenditures of monies are recorded in order to reserve thatportion of the applicable appropriation, is utilized for the General Fund, specialrevenue funds, and capital projects funds. Encumbrances are recorded whenpurchase orders are issued but are not considered expenditures until liabilities forpayments are incurred. Encumbered appropriations lapse at the close of the fiscalyear but are appropriately provided for in the subsequent year's budget.Encumbrances outstanding at year-end are reported as a reservation of fund balanceon the balance sheet.G. Revenue RestrictionsThe School Board has various restrictions placed over certain revenuesources from state or local requirements. The primary restricted revenue sourcesinclude:Revenue SourceSales taxes See Note 11Ad valorem taxes See Note 3Legal Restrictions on UseThe School Board uses unrestricted resources only when restricted resourcesare fully depleted.H. Capitalization of Interest ExpenseIt is the policy of the School Board to capitalize material amounts of interestresulting from borrowings in the course of the construction of capital assets. At June30, 2004 there were no borrowings for assets under construction and no capitalizedinterest expense was recorded on the books.


41LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)1. Use of EstimatesThe preparation of financial statements in conformity with generallyaccepted accounting principles requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure ofcontingent assets and liabilities at the date of the financial statement and the reportedamounts of revenues and expenditures during the reporting period. Actual resultscould differ from those estimates.J. Report ClassificationCertain previously reported amounts for the year ended June 30, 2003 havebeen reclassified to conform to the June 30, 2004 classifications.(2) Cash and InvestmentsA. Cash and Interest-Bearing DepositsUnder state law, the School Board may deposit funds within a fiscal agentbank organized under the laws of the State of Louisiana, the laws of any other state inthe Union, or the laws of the United States. The School Board may invest in directobligations of the United States government, bonds, debentures, notes or otherevidence of indebtedness issued or guaranteed by federal agencies and/or the UnitedStates government, and time certificates of deposit of state banks organized underLouisiana law and national banks having principal offices in Louisiana. At June 30,2004, the School Board has cash and interest-bearing deposits (book balances)totaling $58,228,551 as follows:GovernmentalActivitiesFiduciaryFundsTotalDemand depositsInterest-bearing accountsTime deposits$ 1,736,05647,058,376600,000$ 1,113,4837,593,710126,926$ 2,849,53954,652,086726,926Total $49,394,432 $ 8,834,119 $58,228,551


42LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)These deposits are stated at cost, which approximates market. Under statelaw, these deposits (or the resulting bank balances) must be secured by federaldeposit insurance or the pledge of securities owned by the fiscal agent bank. Themarket value of the pledged securities plus the federal deposit insurance must at alltimes equal the amount on deposit with the fiscal agent bank. These securities areheld in the name of the pledging fiscal agent bank in a holding or custodial bank thatis mutually acceptable to both parties. Deposit balances (bank balances) at June 30,2004, are secured as follows:Bank balances $64,451,111Federal deposit insurance 842,619Pledged securities 63,608,492B. InvestmentsTotal federal insurance and pledged securities $64,451,111The School Board can invest in direct debt securities of the United Statesunless law expressly prohibits such an investment. The School Board's investmentsare categorized to give an indication of the level of risk assumed by it at year-end.Category 1 includes investments that are insured or registered or for which thesecurities are held by the School Board or its agent in the School Board's name.Category 2 includes uninsured and unregistered investments with securities held bythe counterparty's trust department or agent in the School Board's name. Category 3includes uninsured and unregistered investments with securities held by thecounterparty, or by its trust department or agent, but not in the School Board's name.In accordance with GASB Codification Section 150.165, the investment inLAMP is not categorized in the three risk categories provided by GASB CodificationSection 150.164 because the investment is in the pool of funds and thereby notevidenced by securities that exist in physical or book entry form. LAMP isadministered by LAMP, Inc.; a non-profit corporation organized under the laws ofthe State of Louisiana, and is governed by a board of directors comprised ofrepresentatives from various local governments and statewide professionalorganizations. Only local governments having contracted to participate in LAMPhave an investment interest in its pool of assets. While LAMP is not required to be aregistered investment company under the Investment Company Act of 1940, itsinvestment policies are similar to those established by Rule 2-a7, which governsregistered money market funds. The primary objective of LAMP is to provide a safeenvironment for the placement of public funds in short-term, high qualityinvestments.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)The LAMP portfolio includes only securities and other obligations in whichlocal governments in Louisiana are authorized to invest. Accordingly, LAMPinvestments are restricted to securities issued, guaranteed, or backed by the U. S.Treasury, the U. S. Government, or one of its agencies, enterprises, orinstrumentalities, as well as repurchase agreements collateralized by those securities.The dollar weighted average portfolio maturity of LAMP assets is restricted to notmore than 90 days, and consists of no securities with a maturity in excess of 397days. The fair market value of investments is determined on a weekly basis tomonitor any variances between amortized cost and market value. The fair value ofthe School Board's investment in LAMP is the same as the value of the pool shares.Normally, investments are required to be reported at fair value. For purposes ofdetermining participants' shares, investments are valued at amortized cost.Investments in an external investment pool can be reported at amortized cost if theexternal investment pool operates in a manner consistent with the Security ExchangeCommission's (SEC's) Rule 2a7. LAMP is an external investment pool that operatesin a manner consistent with SEC Rule 2a7. LAMP is designed to be highly liquid togive its participants immediate access to their account balances.At June 30, 2004, the School Board's investments totaled $13,737,421 ofwhich $13,377,152 was for governmental activities and $360,269 was for fiduciaryfunds. Investment information is as follows:Interest Reported ApproximateDescription Category Rate Amount Fair ValueLouisiana AssetManagement Pool(LAMP) N/A Variable $ 13,737,421 $ 13,737,421(3) Ad Valorem TaxesAd valorem taxes attach as an enforceable lien on property as of January 1 of each year.During the fiscal year ended June 30, 2004, taxes were levied by the School Board on June 16, 2004and were billed to taxpayers by the Assessor in November 2004. Billed taxes are due by December31, becoming delinquent on January 1 of the following year.The taxes are based on assessed values determined by the Tax Assessor of Lafayette Parishand are collected by the Sheriff. The taxes are remitted to the School Board net of deductions forPension Fund contributions.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)For the year ended June 30, 2004, taxes were levied on property with net assessed valuationstotaling $83 \ ,002,237 and were dedicated as follows:Constitutional school taxSpecial school maintenance and operational taxSpecial school improvement taxSchool operations tax (1985)Total General Fund assessmentSchool District No. 1 (Debt Service Fund)Total assessment4.59 mills7.27 mills5.00 mills16.70 mills33.56 mills0.72 mills34.28 millsGross taxes levied for the current fiscal year totaled $28,521,198. After deductions forvarious pension distributions and uncollectible taxes and collections of back taxes, net taxes remittedto the School Board amounted to $27,170,401.(4) ReceivablesReceivables at June 30, 2004 of $613,838 consisted of the following:Accounts $601,372Accrued interest 1,328Other 11,138$613,838(5) Due from Other Governmental Agencies2004:Due from other governmental agencies of $6,581,153 consisted of the following at June 30,State of Louisiana, Department of Educationfor various appropriations and reimbursements $6,359,660Other municipalities and agencies for variousreimbursements 221,493$6,581,153


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)(6) Capital AssetsCapital assets balances and activity for the year ended June 30, 2004 is as follows:Capital assets notbeing depreciated:LandConstruction in progressOther capital assets:Building and improvementsFurniture and equipmentTotalLess accumulated depreciation:Buildings and improvementsFurniture and equipmentTotalNet capital assetsBalance6/30/2003 Additions Deletions$ 5,771,814 $ - $ -153,239 661,856 260,014193,181,003 1,690,12017,269,641 650,313 577,944216,375,697 3,002,289 837,95868,932,685 5,445,1449,020,852 1,566,156 577,94477,953,537 7,011,300 577,944$138,422,160 $(4,009,011) $ 260,014Balance6/30/2004$ 5,771,814555,081194,871,12317,342,010218,540,02874,377,82910,009,06484,386,893$134,153,135Depreciation expense was charged to governmental activities as follows:Regular programsSpecial education programsVocational education programsOther instructional programsSpecial programsAdult and continuing education programsPupil support servicesInstructional staff support servicesGeneral administrationSchool administrationBusiness servicesOperation and maintenance of plant servicesStudent transportation servicesCentral servicesFood servicesCommunities service programsTotal depreciation expense$ 2,822,7671,035,181118,823197,398397,84443,898274,782317,990101,498330,68552,667476,481451,18753,153328,8788,068$ 7,011,300


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)(7) Accounts. Salaries, and Other PayablesAt June 30, 2004, accounts, salaries, and other payables consisted of the following:Salaries $14,202,090Accrued payroll taxes and payroll related liabilities 9,967,552Group insurance claims payable 3,185,284Accounts 3,136,351Contracts 227,131Retainages 58,712Other liabilities 36,166$30,813,286(8) Short Term DebtDuring the year, the School Board issued anticipation certificates, Series 2003E in order tofund current operations until property tax revenues were received. The certificates were paid off onMarch 1, 2004. Short-term activity for the year ended June 30, 2004, is summarized as follows:BeginningEndingBalance Proceeds Repayment BalanceAnticipation certificates $ - $ 4,900,000 $ 4,900,000 $ -(9) Long-Term LiabilitiesThe School Board issues general obligation bonds, secured by ad valorem taxes, and sales taxrevenue bonds, secured by sales tax collections, to provide for the acquisition and construction ofmajor capital facilities. These bonds are direct obligations and pledge the full faith and credit of theBoard and are generally issued as 20 or 30-year serial bonds. The School Board also issued leaserevenue bonds, secured by General Fund revenues, to finance the purchase of specific equipment usedin the energy efficiency management program. As discussed in Note (9), these bonds were advancerefunded during the current fiscal year.During the fiscal year ending June 30, 2001, the School Board entered into a lease agreementin the amount of $1,345,000 to purchase an IBM AS/400 720 mainframe computer and several schoolbuses. In accordance with Financial Accounting Standard No. 13, the lease met the criteria forrecordation as a capital lease. At June 30, 2004, these assets had a value of $906,027 (net of $438,973of accumulated depreciation), which is included in the furniture and equipment capital asset class.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaMotes to the Basic Financial Statements (Continued)During the fiscal year ended June 30, 2002, the School Board received loan proceeds in theamount of $3,001,060 from a Louisiana Qualified Zone Academy Bond Program (QZAB). The fundsfrom these bonds will be used to make improvements to existing schools.All of the School Board's long-term debt is associated with governmental activities.Workmen's compensation claims are generally liquidated by the General and School Food ServiceSpecial Revenue Funds. Claims and judgments (included in insurance claims) and compensatedabsences are generally liquidated by the General Fund and arbitrage is generally liquidated by thecapital projects funds. Long-term debt currently outstanding is as follows:General obligation bonds:Issued Issue Final Maturity Interest BalanceAmount Date Date Rates Outstanding$2,810,000 03/01 /04 03/01 /09 2.00-2.63 $2,810,000Sales tax bonds:Issued Issue Final Maturity Interest BalanceAmount Date Date Rates Outstanding7,620,000 10/01/95 04/01/15 4.80-5.00 5,730,00060,000,000 04/01/98 04/01/18 4.40-6.00 52,960,0009,950,000 09/01/99 04/01/19 4.70-6.00 9,025,00012,000,000 08/01/01 04/01/21 4.35-5.25 11,210,00012,895,000 03/01/04 04/01/13 2.00-4.00 12,895,000$102,465,000 $ 91,820,000


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)Capital lease, QZAB, and certificates of indebtedness payable:IssuedAmountIssueDateFinal MaturityDateInterestRatesBalanceOutstanding$ 1,345,0003,001,0604,350,0003,250,00006/06/0102/01/0211/26/0212/15/0309/26/0611/01/1511/01/1011/01/134.6803.753.68$ 702,4032,509,9774,015,0003,250,000$11,946,060 $10,477,380A. Changes in General Long-Term LiabilitiesDuring the year ended June 30, 2004, the following changes occurred in long-termliabilities transactions and balances:Balance Balance Due Within7/1/2003 Additions Reductions 6/30/2004 One YearGeneral ObligationBonds $ 3,285,000 $ 2,810,000 $ 3,285,000 $ 2,810,000 $ 530,000Sales TaxRevenue Bonds 96,445,000 12,895,000 17,520,000 91,820,000 5,195,000Capital Lease 915,921 - 213,518 702,403 223,511QZAB Bonds 2,728,236 - 218,259 2,509,977 218,2592002 Certificates ofIndebtedness 4,350,000 - 335,000 4,015,000 510,0002003 Certificates ofIndebtedness - 3,250,000 - 3,250,000 260,000Insurance Claims 3,223,827 1,970,174 2,005,347 3,188,654 1,863,456CompensatedAbsences 2,795,305 336,394 486,262 2,645,437 491,354Unamortized bond related items:$113,743,289 $21,261,568 $24,063,386 $110,941,471 $9,291,580Less: unamortized loss on refunding (413,089)Add: unamortized premium 147,689$110,676,071


49LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)B. Annual debt service requirements to maturity for the general obligation bonds are as follows:Year EndingJune 30 Principal Interest Total20052006200720082009$ 530,000545,000560,000580,000595,000$ 62,09451,49440,59429,39415,619$ 592,094596,494600,594609,394610,619$2,810,000$ 199,195$3,009,195Annual debt service requirements to maturity for the sales tax bonds are as follows:Year EndingJune 30 Principal Interest Total200520062007200820092010-20142015-20192020-2021$ 5,195,0005,440,0005,710,0005,995,0006,300,00034,060,00027,240,0001,880,000$ 4,228,9893,978,1453,714,6383,438,9133,143,11511,423,1303,928,795142,250$ 9,423,9899,418,1459,424,6389,433,9139,443,11545,483,13031,168,7952,022,250$91,820,000$33,997,975$125,817,975Annual debt service requirements to maturity for the capita! lease, QZAB, andcertificates of indebtedness are as follows:Year EndingJune 30 Principal Interest Total200520062007200820092010-20142015-2016$ 1,211,7691,257,2301,313,1801,098,2591,133,2594,136,295327,388$ 288,688248,886207,106163,416129,979217,179-$ 1,500,4571,506,1161,520,2861,261,6751,263,2384,353,474327,388$ 10,477,380 $ 1,255,254 $ 11,732,634


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)(10) Advance RefundingOn March 1, 2004, the School Board issued $2,810,000 of general obligation bonds, Series2004 with an interest rate ranging from 2.00% to 2.63%. The School Board issued the bonds toadvance refund $5,535,000 of general obligation bonds, Series 1993 with an interest rate rangingfrom 4.40% to 5.00%. The School Board transferred the net proceeds along with existing resourcesto an escrow agent to be used to pay off the refunded bonds. This advance refunding was undertakento reduce total debt service payments over the next five years by $225,489 and resulted in aneconomic gain of $194,281.On March 1, 2004, the School Board issued $12,895,000 of sales tax bonds, Series 2004 withan interest rate ranging from 2.00% to 4.00%. The School Board issued the bonds to advance refund$19,000,000 of sales tax bonds, Series 1994 with an interest rate ranging from 4.80% to 4.88%. TheSchool Board transferred the net proceeds along with existing resources to an escrow agent to be usedto pay off the refunded bonds. This advance refunding was undertaken to reduce total debt servicepayments over the next nine years by $964,310 and resulted in an economic gain of $1,088,570.(11) Sales and Use TaxesIn accordance with a proposition approved by the voters of Lafayette Parish on September \ 8,1965, the Schoo! Board collects a one percent sales and use tax on all taxable sales within the Parish.One half of tax proceeds must be used for teachers' salaries and for expenses of operating the schools.The remainder may be used for capital improvements or operational purposes, as the School Boarddetermines, or for the payment of bonded indebtedness.Upon receipt from the Sales Tax Collector, one half of each month's collections is depositeddirectly into the operating accounts of the General Fund. The remaining one half of each month'scollections are used (1) to make required monthly deposits into the sinking fund for Sales TaxRevenue Bonds and (2) to purchase capital improvements or pay school operating expenses from theCapital Improvement Program accounts.At June 30, 2004, various Public School Bonds with outstanding principal balances totaling$91,820,000 were secured by a pledge and dedication of proceeds of the one percent sales and use taxdescribed in the preceding paragraphs.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)In accordance with a proposition approved by the voters on November 21, 1987, the SchoolBoard collects a one-half percent sales and use tax on all taxable sales within the Parish. Uponreceipt from the Sales Tax Collector, each month's collections are deposited directly into a separateaccount within the General Fund. These tax proceeds must be used for the priorities set forth in thesales tax election. During the current fiscal year, these proceeds were expended as follows:Current YearExpendituresFirst, the restoration of a five percent salary reduction for school employees. $ 5,853,974Second, the restoration of the reduction in funding for material of instruction andfor certain educational programs. 708,567Third, to provide up to $250,000 per year for the removal of asbestos from schoolbuildings until completion of project.Fourth, funding to pay on behalf of active and retired employees one half of thetotal premium for employee only coverage of a board approved health plan. 8,784,234Fifth, to provide funding for establishment of certain enhancement programs. 1,318,087Sixth, if proceeds of tax exceed the amounts necessary to fund the above, theexcess will be used exclusively for pay increases of school employees orestablishment of instructional programs. " _Total expenditures $16,664,862The following is a reconciliation of unexpended one-half cent sales tax that is reserved in theGeneral Fund:Sales tax collected $ 16,664,862Balance reserved at June 30,2003 -Amount available to be expended 16,664,862Less: Expenditures 16,664,862Unexpended balance reserved in the General Fund at June 30,2003 $ -In accordance with a proposition approved by the voters on November 17, 2001, the SchoolBoard collects an additional one-half cent sales and use tax on all taxable sales and services within theParish HeHiratpH to paying the costs of salaries and related benefits of classroom teachers and theestablishment of a teachers salary reserve fund.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)The following is a reconciliation of unexpended one-half cent sales tax that is reserved in the2002 Sales Tax Fund:Sales tax collected $ 16,492,297Balance reserved at June 30, 2003 3,412,338Amount available to be expended 19,904,635Add: Interest reserve 67,567Less: Expenditures 16,201,426Unexpended balance reserved in the General Fund at June 30, 2004 $ 3,770,776(12) Retirement PlansSubstantially all employees of the School Board are members of two statewide retirementsystems. In general, professional employees (such as teachers and principals) and lunchroom workersare members of the Teachers' Retirement System of Louisiana; other employees, such as custodialpersonnel and bus drivers, are members of the Louisiana School Employees' Retirement System.These systems are cost-sharing, multiple-employer defined benefit pension plans administered byseparate boards of trustees. Pertinent information relative to each plan follows:A. Teachers' Retirement System of Louisiana (TRS)Plan Description: The School Board participates in two membership plans ofthe TRS, the Regular Plan and Plan B. The TRS provides retirement benefits as wellas disability and survivor benefits. Ten years of service credit is required to becomevested for retirement benefits and five years to become vested for disability andsurvivor benefits. Benefits are established and amended by state statute. The TRSissues a publicly available financial report that includes financial statements andrequired supplementary information for the TRS. That report may be obtained bywriting to the Teachers' Retirement System of Louisiana, Post Office Box 94123,Baton Rouge, Louisiana 70804-9123, or by calling (225) 925-6446.Funding Policy: Plan members are required to contribute 8.0 percent and 5.0percent of their annual covered salary for the Regular Plan and Plan B, respectively.The School Board is required to contribute at an actuarially determined rate. Thecurrent rate is 13.8 and 5.0 percent of annual covered payroll for the Regular Planand Plan B, respectively. Member contributions and employer contributions for theTRS are established by state law and rates are established by the Public RetirementSystems' Actuarial Committee. The School Board's employer contribution to theTRS, as provided by state law, is funded by the State of Louisiana through annualappropriaiions, by deductions from local ad valorem taxes, and by remittances fromthe School Board. The $1,036,320 of payments made by the state and the parish taxcollector on behalf of the School Board is reflected in the accompanying basicfinancial statements as both revenue and expenditures.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)Contributions by plan members and the School Board to the TRS for theyears ending June 30, 2004, 2003, and 2002, were $25,265,128, $23,640,571, and$20,979,929, respectively, equal to the required contributions for each year.B. Louisiana School Employees' Retirement System (LASERS)Plan Description: The LASERS provides retirement benefits as well asdisability and survivor benefits. Ten years of service credit is required to becomevested for retirement benefits and five years to become vested for disability andsurvivor benefits. Benefits are established and amended by state statute. TheLASERS issues a publicly available financial report that includes financialstatements and required supplementary information for the LASERS. That reportmay be obtained by writing to the Louisiana School Employees' Retirement System,Post Office Box 44516, Baton Rouge, Louisiana 70804, or by calling (225) 925-6484.Funding Policy: Plan members are required to contribute 7.5 percent of theirannual covered salary and the school board is required to contribute at an actuariallydetermined rate. In previous years, the School Board had been contributing at therate of 8.5 percent of annual covered payroll. During the fiscal years ended June 30,2003 and 2002, the School Board's contribution requirement to the plan was remittedfrom a credit that was accumulated through prior year excess contributions. Thisexcess resulted from the difference between the actual amount contributed and theactuarially determined rate. Member contributions and employer contributions forthe LASERS are established by state law and rates are established by the PublicRetirement Systems' Actuarial Committee. The School Board's employercontribution for the LASERS is funded by the State of Louisiana through annualappropriations and by remittances from the School Board.Contributions by plan members and the School Board to the LASERS for theyears ending June 30, 2004, 2003, and 2002 were $1,491,922, $654,993, and$600,243, respectively, equal to the required contributions for each year.(13) Post-Retirement Health Care and Life Insurance BenefitsIn accordance with the Employer Health and Welfare Benefit Plan established in November1986, the School Board provides certain continuing health care and life insurance benefits for itsretired employees. Substantially all of the School Board's employees become eligible for thesebenefits if they reach normal retirement age while working for the School Board. The monthlypremiums of these benefits for retirees and similar benefits for active employees are paid jointly bythe employee (approximately 30 percent) and the School Buaid (appiOAJinalcly 70 pciccut). TheSchool Board recognizes the cost of providing these benefits (the School Board's portion ofpremiums) as an expenditure when the monthly premiums are due. The School Board's cost ofproviding these benefits to retirees totaled $2,448,982 for 2004 and encompasses 1,452 formeremployees qualified to receive such benefits.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)(14) Risk ManagementA. Commercial Insurance CoverageThe School Board purchases commercial insurance for property coverage,general liability, and automobile liability. The deductibles per occurrence for thesecoverages are $1,000,000, $250,000 and $100,000, respectively. A fund balancedesignation of $250,000 has been set up in the General Fund to provide funding forany claims that may arise up to the deductibles. Settled claims resulting from theserisks have not exceeded commercial coverage in any of the past three fiscal years.B. Workers' CompensationThe School Board has established a limited risk management program forworkers' compensation. The School Board hired F.A. Richard and Associates(FARA) as administrator for this program. During the fiscal years ended 2004 and2003, $1,965,983 and $1,650,922, respectively, were incurred in benefits andadministrative costs. The School Board purchases commercial insurance forindividual claims in excess of $250,000.The liabilities for unpaid workers' compensation claims are represented bythe outstanding claim reserves. These reserves are estimates of the ultimate potentialpayments to be made on each claim, considering the medical is in litigation; and,considering all expenses which may be required in the handling of the file such ascost of independent medical exams, legal fees and the like.Workers' compensation claims are paid according to established paymentschedules set by the Louisiana legislature and the Department of Labor. Wagebenefits are calculated according to a set formula based on a fee schedule. In somecases, FARA, the third party administrator of Lafayette Parish School System'sworkers' compensation fee schedule. In those cases, claim reserves reflect thediscounted costs.The School Board has no claims for which annuity contracts have beenpurchased.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)C. Reconciliation of Claims Liabilities - Workers' CompensationBeginning ofFisca! YearLiabilityClaims andChanges inEstimatesBenefitPaymentsand ClaimsBalance atFiscalYear-End2002-20032003-2004$ 2,430,024$ 2,665,627$ 1,650,922$ 1,965,983$ 1,415,319$ 1,816,425$2,665,627$2,815,185D. Group Self-InsuranceThe School Board also established a limited risk management program forgroup hospitalization insurance. This plan provides employee health benefits up to$1,000,000 in a lifetime maximum. The School Board purchases commercialinsurance for individual claims in excess of $200,000.The General and Special Revenue Funds of the School Board participate inthe program and make payments to the Self-Insurance Fund based on amountsneeded to pay prior and current year claims. The claims liability of $3,118,020reported in the fund at June 30, 2004, is based on the loss that is probable to havebeen at the date of the financial statements and the amount of the loss that can bereasonably estimated. The School Board currently does not discount its claimsliabilities.E. Reconciliation of Claims Liabilities - Group Hospital izationChanges in the claims liability amount for the group hospital ization riskmanagement program are as follows:2002-20032003-2004Beginning ofFiscal YearLiability$ 2,459,779$ 2,400,650Claims andChanges inEstimates$19,805,947$22,993,748BenefitPaymentsand Claims$19,865,076$22,276,378Balance atFiscalYear-End$2,400,650$3,118,020


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)Claims payable for group hospitalization of $3,118,020 at June 30, 2004 wasdetermined as follows:1. Claims incurred prior to June 30, 2004and paid subsequently:Paid as ofAmountJuly 31,2004 $1,722,284August 31,2004 655,585September 30,2004 211,881 $2,589,7502. Claims incurred prior to June 30, 2004and unpaid at October 31, 2004:a. Pending claims at October 31,2004 13,006b. Unprocessed claims pending andunprocessed at October 31, 2004 549,481Total claims pending and unprocessed 562,487Claim payments as a precentageof total charges incurred 39.53% 222,3753. Provision for claims incurred but not reported 305,895Total claims payable $3,118,020The provision for claims incurred but not reported of $305,895 wascalculated utilizing historical information adjusted for current trends.(15) Commitments and ContingenciesA. Contingent LiabilitiesAt June 30, 2004, the School Board was a defendant in lawsuits principallyarising from the normal course of operations. The School Board's legal counsel hasreviewed the School Board's claims and lawsuits, which are primarily personal injuryclaims, in order to evaluate the likelihood of an unfavorable outcome to the SchoolBoard and to arrive at an estimate, if any, of the amount or range of potential loss tothe School Board. As a result of the review, the various claims and lawsuits havebeen categorized into "probable," "reasonably possible," or "remote," as defined bythe Governmental Accounting Standards Board. The amount of claims and lawsuitswhich have been classified as "reasonably possible" individually range from $85,000to $439,500. It is the opinion of the School Board, after conferring with legalcounsel, that the liability, if any, which might arise from these lawsuits would nothave a material adverse effect on the School Board's financial position.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)B. Grant AuditsThe School Board receives grants for specific purposes that are subject toreview and audit by governmental agencies. Such audits could result in a request forreimbursement by the grantor for expenditures disallowed under the terms andconditions of the appropriate agency. In the opinion of the School Board, suchdisallowances, if any, will not be significant.C. Arbitrage RebateSection 148 of the Internal Revenue Code of 1986, as amended, requires thatissuers of tax-exempt debt make arbitrage calculations annually on bond issues issuedafter August 31, 1986, to determine whether an arbitrage rebate liability existsbetween the issuer and the U.S. Department of the Treasury. Arbitrage is thedifference (or profit) earned from borrowing funds at tax-exempt rates and investingthe proceeds in higher yielding taxable securities.Based upon arbitrage rebate calculations made as of June 30, 2004, for theLafayette Parish School Board, it was determined that no liability existed at June 30,2004.D. Construction CommitmentsThe School Board has construction commitments outstanding at June 30,2004 in the amount of $269,703.(16) Compensation of Board MembersA detail of the compensation paid to individual board members for the year ended June 30,2004 follows:AmountGuidry, John Earl $ 9,600LaCombe, Car) J. 9,600Hardy, Ricky 9,600Sam, Edward 9,600Hefner, Michael 10,200Wilson, Beverly 9,600Thibodaux, David 10.200Cox, Judy 9,600Gibson, Kay 9,600$87,60057


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)(17) Fund Balances, Reserved and DesignatedAt the fund financial statement level, fund balances have been reserved and designated for thefollowing purposes:Governmental fund balances reserved for:General Fund -Inventory $ 362,431Encumbrances 902,649Prepaid items 1,977,051Workers compensation 600,0003,842,131Special revenue funds -Encumbrances 5,744One half cent sales tax 3,770,776Inventory 491,5144,268,034Debt service funds -Debt retirement 13,843,488Capital projects funds -Encumbrances 175,651Incomplete contracts 269,703445,354Total reserved fund balances - governmental funds $22,399,007Private trust fund balances reserved for -Scholarships $ 9,242Student loans 14,982Comeaux High School athletics 2,207Educational assistance 13,490Total reserved fund balances - private trust funds $39,921


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)Governmental fund balances unreserved, designated for:General Fund -Insurance claimsSelf-InsuranceL. D. ConsortiumSubsequent years' expendituresCapital projects funds -Capital expendituresTotal governmental fund balances, unreserved and designated$ 250,000750,0001,4881,048,5242,050,0122,106,759$4,156,771(18) Excess of Expenditures over AppropriationsFor the year ended June 30, 2004, the following funds had actual expenditures overappropriations, at the functional level, as follows.Fund and FunctionGeneral Fund:Regular programsOperation and maintenance of plant servicesSpecial Revenue Funds:Consolidated Special Revenue -Regular programsVocational education programsOther instructional programsSpecial programsAdult and continuing education programsPupil support servicesInstructional staff support servicesSchool administrationBusiness servicesConsolidated Other Federal Programs -Special programsSchool Food Service -FuuU sciDebt Service Fund:Consolidated School District #1 -Debt serviceBudget71,182,44613,463,521430,22612,005652,355128,490196,3354,423693,2727,96523,265254,521,397,624Actual71,887,70213,928,003680,87219,0001,032,411203,347310,7187,0001,097,16712,60536,819266,2049,660,916Excess(705,256)(464,482)(250,646)(6,995)(380,056)(74,857)(114,383)(2,577)(403,895)(4,640)(13,554)(11,683)(263,292)638,703 705,668 (66,965)


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaMotes to the Basic Financial Statements (Continued)(19) Interfund TransactionsA. Interfund receivables and payables, by fund, at June 30, 2004 are as follows:InterfundReceivablesInterfundPayablesMajor funds:General Fund $ 10,044,246 $ 3,574,7862002 Sales Tax 1,347,545 2,617,426Sales Tax Revenue Bond Sinking Fund 785,332 -Total major funds 12,177,123 6,192,212Nonmajor funds:Consolidated Other I ASA 555 1,211,628Consolidated Special Education - 817,344Consolidated Adult Education 403,044 543,392Consolidated Special Revenue 2,874,795 1,625,808Consolidated Federal Programs 22,422 1,932,816Child Development Program - 1,170,971Consolidated Other Federal Programs 114,717 257,791Consolidated Direct Federal - 225,739School Food Service - 1,803,229Consolidated School District#l 1,171 880Capital Improvements Program 250,465 33,2931999 Bond Construction - 1872001 Bond Construction - 232Self-funded Construction 16,663 15.503Total nonmajor funds 3,683,832 9,638,813Internal service fund:Group Self Insurance Fund - 29,930Total $ 15,860,955 $ 15,860,955The amounts due from the General Fund from various other funds are forreimbursements owed for expenditures paid for those funds. The other receivable balancesare for short-term loans.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to the Basic Financial Statements (Continued)B. Transfers consisted of the following at June 30,2004:Transfers In Transfers OutMajor funds:General Fund $ 3,854,040 $ 1,715,658Sales Tax Revenue Bonds - 200,000Total major funds 3,854,040 1,915,658Nonmajor funds:Consolidated Other IASA - 102,485Consolidated Special Education - 175,401Consolidated Adult Education - 47,577Consolidated Federal Programs - 275,591Child Development Program - 159,388Consolidated Other Federal Programs - 3,539Consolidated Direct Federal - 9,715School Food Service 476,640Other Debt Service 1,011,668Capital Improvements Program 420,800 1,580,344Total nonmajor funds 1,909,108 2,354,040Internal service fund:Group Self Insurance Fund 6,550 1,500,000Total $ 5,769,698 $ 5,769,698Transfers are used to (a) move revenues from the fund that statute or budget requiresto collect them to the fund that statute or budget requires to expend them and to (b) useunrestricted revenues collected in the genera! fund to finance various programs accounted forin other funds in accordance with budgetary authorizations.(20) Subsequent EventsIn October 2004 the School Board issued $5,000,000 of anticipation certificates, Series2004B for the purpose of funding operations until property tax revenues are received. The certificateswill bear interest at a rate or rates not to exceed 4.00% per year and will become due on March 1,2005.In October 2004, the School Board authorized the issuance of $4,000,000 of Certificates ofIndebtedness, Series 2004 for the purpose of acquiring, constructing, and improving school andschool related improvements, including necessary fixtures, furnishings and equipment. Thecertificates will bear interest at a rate or rates not exceeding 6.00% per year and are anticipated to beissued on January 19, 2005.


LAFAYETTE PARISHSCHOOL SYSTEM


REQUIREDSUPPLEMENTARYINFORMATIONLAFAYETTE PARISHSCHOOL SYSTEM


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaGeneral FundBudgetary Comparison ScheduleFor the Year Ended June 30, 2004With Comparative Actual Amounts for the Year Ended June 30. 2003REVENUESParish sources:Ad valorem taxesSales taxesOtherTotal parish sourcesState sourcesFederal sourcesTotal revenuesBudgetOriginal$25,815.27045.629,9622,680,28274,125,51483,168,942608,563157,903,019Final$27,488,56646,082,5872,498,64976,069,80283,994,735-160,064,5372004Actual$27,579,65044,701,4392,591,04074,872,12984,045,504151,618159,069,251VariancePositive(Negative)$ 91,084(1,381,148)92,391(1,197,673)50,769151,618(995,286)2003Actual$26,248,98843,704.3312,309,24772,262,56680.9)3.469618,798153,794.833EXPENDITURESCurrent:Instruction -Regular programsSpecial education programsVocational education programsOther instructional programsSpecial programsAdult and continuing education programsSupport services -Pupil support servicesInstructional staff support servicesGeneral administrationSchool administrationBusiness servicesOperation and maintenance of plant servicesStudent transportation servicesCentral servicesNon-instructional services -Food servicesCommunity service programsFacilities acquisition and constructionDebt service:Principal retirementInterest and fiscal chargesTotal expenditures68,428,46525,422,3082,756,2344,494,357231,81023,7486.986,0816,261,4353,028.3659.828.6601,374.68312,942,63012.849,3161 ,539,020340.745301.9761,111.100-36, 1 76157.957.10971,182,44626,445,4582,867,1624,675,237241,13824,7047,267,2446,513,4343,150,24510,224,2261,430,00913,463,52113,366,4511,600,960354,458314,1291,155,818.37,632164,314,27271,887,70226,140,4612,768,4184,626,035213,88922,8987,092,0876,114,8702,963,8359,979,5891,312,79913,928,00313,251,5001,490,866324,189244,9691.059.077-37,632163,458,819(705,256)304,99798,74449,20227,2491,806175,157398,564186,410244,637117,210(464,482)114,9511 10,09430,26969,16096,741.-855,45368.350,70325,191,2632,771,5134,858.105214.04824,0936,888.5256.470.2462,887.5019.910,3821.214.66812.478,92711.170.8891.435,45)289-374168,19668.956748,972268.922155,410.734Excess (deficiency) of revenues over expenditures(54,090)(4,249,735)(4,389,568)(139,833)(1,615,901)OTHER FINANCING SOURCES (USES)Bond proceedsTransfer to escrow agentTransfers inTransfers outTotal other financing sources (uses)-2,503,344(2,449,254)54.090-3,812,731(1,834,109)1,978,622-3,854,040(1,715,658)2.138,382-41,309118,451159,7603,025,000(3,025,000)1,987,271(411,863)1,575.408Excess (deficiency) of revenues and othersources over expendituresand other uses$$(2,271,113)(2,251,186)$ 19,927(40,493)FUND BALANCE, BEGINNING15,935,00115,975,494FUND BALANCE, ENDING$13,683,815$15,935,001GAAP is the budgetary basis used in the preparation of this schedule.


LAFAYETTE PARISH SCHOOL BOARDLafayette, Louisiana2002 Sales Tax Special Revenue FundBudgetary Comparison ScheduleFor the Year Ended June 30. 2004With Comparative Actual Amounts for the Year Ended June 30, 2003REVENUESParish sourcesSales taxesInterestTotal revenues2004BudgetOriginal Final Actual$16,712,34017,75016,730,090$16,712,34017,750$16,552,92577,122VariancePositive(Negative)$(159,415)59,3722003Actual$16,165,25413,65916,730,090 16,630,047 (100,043) 16,178,913EXPENDITURESCurrent:Instruction -Regular programs 13,468,213 13,468,213 13,099,122 369,091 11,698,488Special education programs 2,151.833 2,151,833 2,092,863 58,970 1.869,082Vocational education programs 361,399 361,399 351,495 9,904 313,911Other instructional programs 11,731 11,731 11,410 321 10,190Support services -Pupil support services 365,203 365,203 355,195 10,008 317,215Instructional staff support services 299,550 299,550 291,341 8,209 260,189General administration 72,161 72,161 70,183 1,978 62,679Total expenditures 16,730.090 16,730,090 16,271,609 458,481 14.531,754Excess of revenuesover expenditures $ $ 358,438 $ 358,438 1,647,159FUND BALANCE, BEGINNING 3,412,338 1.765,179FUND BALANCE, ENDING $ 3,770,776 $ 3.412.338GAAP is the budgetary basis used in the preparation of this schedule.


SUPPLEMENTARYINFORMATION(OPTIONAL)LAFAYETTE PARISHSCHOOL SYSTEM


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaGeneral FundSchedule of RevenuesBudget (GAAP Basis) and ActualJune 30, 2004With Comparative Actual Amounts for the Year Ended June 30, 2003REVENUESParish sources:Ad valorem taxesSales taxesInterest on interest-bearing depositsRentals, leases and royaltiesOther -Tuition (summer school anddrivers education)MiscellaneousBudget$ 27,488,56646,082,587250,000450,000283,3551,515,2942004Actual$ 27,579,65044,701,439337,997514,342267,5971,471,104Variance -Favorable(Unfavorable)$ 91,084(1,381,148)87,99764,342(15,758)(44,190)2003Actual26,248,98843,704,331385,031504,627305,8451,113,744Total parish sources76,069,80274,872,129(1,197,673)72,262,566State sources:State Public School Fund - equalizationOther -Salary increaseRevenue sharingTransportation of non-public studentsPIPSNon-public textbooksTotal state sources80,755,4092,4001,775,196617,411660,152184,16783,994,73580,755,40920,8331,805,737617,411668,537177,57784,045,504_18,43330,541-8,385(6,590)50,76976,977,411647,1531,803,810567,305738,313179,47780,913,469Federal sources:Federal grants151,618151,618618,798Total revenues$160,064,537$159,069,251$ (995,286)


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaGeneral FundSchedule of ExpendituresBudget (GAAP Basis) and ActualFor the Year Ended June 30, 2004With Comparative Actual Amounts for the Year Ended June 30. 2003EXPENDITURESCurrent:Instruction - regular programs:Salaries -Kindergarten teachersElementary teachersSecondary teachersTeachers' aidesSubstitute teachersSabbatical leavePurchased servicesInstructional materials and suppliesEmployee benefitsEquipmentRepairs and maintenanceTextbooksMiscellaneousTotal instruction - regular programsBudget$ 4,017,59135,275,18810,414,40291 1,3601,193,548349,170136,140725,45015,607,828416,367155,0821,961,33318,98771,182,4462004Actual$ 4,081,04535,813,88510,865.830906,6751,359,390259,200108,391639,18215,418,706335.872134,0811,960,3785.06771,887.702Variance -Favorable(Unfavorable)$ (63,454)(538,697)(451,428)4,685(165,842)89,97027,74986,268189,12280,49521,00195513,920(705,256)2003ActualS 3,744,53634,410,5501 1,658,061714,2121,024,897280,764107,369610,42414,050,303404,890144,1401,196,3544,20368,350,703Instruction - special education programs:Salaries -TeachersSpeech therapistsAidesSubstitutesSabbatical leavePurchased servicesTravelEquipmentEmployee benefitsMaterial and suppliesGifted textbooks/equipment12,631,0152,207,6824,273,250435,12692,67652,89652,56651,0696,083,603441,169124,40612,515.1312,168,3564.156,042495,53591,26754,68051,92241,1966,043,680401,957120,695115,88439,326117.208(60,409)1,409(1,784)6449,87339,92339,2123,71112,849,1472,181,1823,746,200380,903101,48858,31843,11956,5295,402,230286,73085,417Total instruction - special educationprograms26,445,45826,140,461304,99725,191,263Instruction - vocational education programs:SalariesSuppliesEquipmentRepairs and maintenancePurchased servicesEmployee benefits2,028,257138,93481,2543,38585,913529,4191,970,402111,32576.3673,36982,571524,38457,85527,6094,887163,3425,0352,095,60569,80639.37953942,217523,967Total instruction - vocational educationprograms2,867,1622,768,41898.7442.771.513(continued)


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaGeneral FundSchedule of ExpendituresBudget (GAAP Basis) and Actual (Continued)For the Year Ended June 30, 2004With Comparative Actual Amounts for the Year Ended June 30, 2003Budget2004ActualVariance -Favorable(Unfavorable)2003ActualInstruction - other instructional programs:SalariesRental of equipmentEquipmentRepairs and maintenanceEmployee benefitsPurchased servicesOther3,666,2315,14636,669941,84050024,8513,636,6953,69635,491934,013-16,14029,5361,4501,1787,8275008,7113,858,0371,74813,91838.190926,5757619.561Total instruction - other instructional programs4.675,2374,626,03549,2024.858.105Special program expenses:Employee benefits241,138213,88927,249214.048Instruction - adult and continuing education programsEmployee benefitsTravelMaterial and supplies15,5571,0908,05713,8081,0908,0001,749-5715,2061,0627,825Total instruction - adult and continuingeducation programs24,70422,8981.80624.093Support services - pupil support services:Visiting teachers and supervisors -SalariesTravel and otherGuidance services -Counselor salariesClerical/secretarial salariesTravelSuppliesRepairs and maintenanceOtherHealth personnel -SalariesOtherStudent assessment and appraisal -SalariesClerical salariesSupplies185,00330,1132,843,73843,7439,82066,6292,70030,300297,65224,8531,956,20579,58245.627184,445203522,792,33840.7568,68362,6312,42122,345277,50124,3721,937,63478,14317,4895589.76151,4002,9871,1373,9982797,95520,15148118,5711,43928,138168,2564,6642,888,66836,8474,27547.3924,02817.137293,4367,1881,88732663,33714,952(continued)


LAFAYETTE PARISH SCHOOL BOARDLafayette. LouisianaGeneral FundSchedule of ExpendituresBudget (GAAP Basis) and Actual (Continued)For the Year Ended June 30. 2004With Comparative Actual Amounts for the Year Ended June 30,20032004Other pupil support -SalariesSupplies and materialsRepairs and maintenanceEmployee benefitsBudget135,33942,6201,4521.471,868Actual115,93538,1781,3561,467,508Variance -Favorable(Unfavorable)19,4044,442964,3602003Actual121,03030,6501,299,339Total support services - pupil supportservices7.267,2447,092,087175,1576,888,525Support services - instructional staff supportservices:Salaries -Instructional directors and supervisorsSupervisors - special areasSecretarial assistanceTravelConferences, workshops and evaluationsPurchased educational servicesSupplies and materialsEquipmentLibrary expenditures -SalariesLibrary booksEmployee benefits577,1871,307,057198,68039,2477.772525,871342,137335,5211,797,269352,1691.030,524526,4581,176,241198,41130,538i,896350,340362,589299,1351,808,515344,2111,016,53650,729130,8162698,7095,876175,53!(20,452)36,386(11,246)7,95813,988414,5471,706,547169,88143,4337,134348,679239,786432,9401,823,777339,122944,400Total support services - instructionalstaff support services6,513,4346,114,870398,5646,470,246Support services - general administration:School Board members -Mileage and per diemLegal and accounting servicesAdvertisingClaims paidFees for tax collections -Pension Fund deductionsSales tax office expenseElection feesInsuranceOther board expendituresSuperintendent -SalarySecretarial salariesTravelOther87,600388,106-139,087310,171452,625-887,50017,300157,05369,86821,5491 1,04287,600281,245-105,618310,171452,625-874,06414,710156,93071,35214,9863,637-106,861-33,469.--13,4362,590123(1,484)6,5637,40587,600430,3599,380220,915308,847431,21711,505598,09410,957129,10767,95512,1393,576(continued)


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaGeneral FundSchedule of ExpendituresBudget (GAAP Basis) and Actual (Continued)For the Year Ended June 30. 2004With Comparative Actual Amounts for the Year Ended June 30. 2003Assistant superintendents -SalaryTravelSecretarial salariesOtherMaterial and suppliesEquipmentEmployee benefitsTotal support services - generaladministrationBudget170,40216,784179,20314,10210,9117,912209,0303,150,2452004Actual169,76115,053175,8058,6798,9207,912204,7672,963,835Variance -Favorable(Unfavorable)6411,7313,3985,4231,991-4,263186,4102003Actual162,94722,509164,9175,5698,6374,000197,2712,887,501Support services - school administration:Salaries -Principals and assistant principalsSecretaries and clerksTravelTelephone service for schoolsMaterials, supplies and otherEquipmentEmployee benefitsTotal support services - schooladministration5,471.2842,293,39217,110154,24888,52734,7192.164,94610,224,2265.363,7882,192.7099,728152,61169,78131,1272.159.8459,979,589107.496100,6837,3821,63718,7463,5925.101244,6375,258,8182,159,2669,089331,77671,64634,0922,045,6959,910,382Support services - business services:Salaries -Accounting and clerical staffPurchasing and warehouseAdvertisingContracted servicesTravelMaterial and suppliesEmployee benefitsOffice equipmentPostageRepairs and maintenanceTotal support services - businessservices614,293293,53119,88725,7612,235125,112288,8607,09749,8973.3361,430,009603,717293,03219,10316,2341,41744,090287,0644,47742,5401,1251,312,79910,5764997849,52781881,0221,7962,6207,3572,211117,210568,032278,33413,66215,2951,60439,153246,42015,95331,6464.5691,214,668(continued)


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaGeneral FundSchedule of ExpendituresBudget (GAAP Basis) and Actual (Continued)For the Year Ended June 30, 2004With Comparative Actual Amounts for the Year Ended June 30, 20032004Support services - operation and maintenance ofplant services:Salaries -Supervisor of maintenanceOther maintenance personnelCustodial personnelClericalUtilitiesInsuranceTelephoneRepair and upkeep of buildingsRentalsRepair and upkeep of equipmentTravelEquipmentMaintenance suppliesContracted servicesEmployee benefitsGasolineBudget148,0451,401,6343,386,746118,8332,290,290731,559360,4471,152,16555,982537,268-201,2471,178,571105,4551,705,04990,230Actual148,0421,361,7752,995,323118,5633,380.746730,215338,8521,134,25561,212518,390-165,9321,085,460105,3461,672,530111,362Variance -Favorable(Unfavorable)339,859391,423270(1,090.456)1,34421,59517,910(5,230)18.878-35,31593,11110932.519(21.132)2003Actual93,0151,322,0752,889,95588,8642,963,286986,96499,017587,34467,238659,48851212,6551,058,909103,9941,268,78477,288Total support services - operationand maintenance of plant services13,463,52113.928,003(464.482)12,478,927Support services - student transportation services:Supervisor -SalarySupplies and otherSalaries -Bus driversBus attendantsSubstitutesClericalOtherBus drivers' lease and operating allowanceRepairs and maintenanceCost of gasoline, tires and oilInsuranceRentalEquipmentEmployee benefits25,935168,0784,437,61 1810,312597,62183,959248,2273,933,17664,322284,95544,639326,75562,8002,278,06125,689159.3884,405,409810,219601,64483,734243,2793,933.08455,049351,69144,131326,75554,9652,156,4632468,69032,20293(4,023)2254,948929,273(66,736)508-7,835121.5982,63726,5474,311,964598,822573,84380,815237,9702,918,945178,448361,47344,131302,3208,4151,524,559Total support services - studenttransportation services13,366,45113,251,500114,95111,170,889(continued)


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaGeneral FundSchedule of ExpendituresBudget (GAAP Basis) and Actual (Continued)For the Year Ended June 30, 2004With Comparative Actual Amounts for the Year Ended June 30, 2003Support services - central services:Personnel services -SalariesOtherPublic information services -SalariesEquipmentOther expendituresData processing -SalariesPurchased servicesOther expendituresEquipmentMaterials and suppliesEmployee benefitsTotal support services - central servicesBudget282,794156,230125,56259,42070,003315,151149,98339,62123,936190,157188,1031,600,9602004Actual287,586154,519123,65059,35437,780255,763145,80527,47922,665189,167187,0981,490,866Variance -Favorable(Unfavorable)(4,792)1,7111,9126632,22359,3884,17812,1421,2719901.005110.0942003Actual317,11292,069139,1037,35647,049273,190118,09013,8059,047207,8622 JO. 7681,435,451Food services:Employee benefitsRepairs and maintenanceFood purchasesOtherTotal food services259,28845,17050,000-354,458229,98844,92749,274-324,18929.300243726-30.269225.74547,013-16,616289,374Community service programs:Civic appropriationsEquipmentSalariesTravelMaterials and suppliesOther expendituresEmployee benefits232,7801,80038,7077252,32025,94011,857173,6621,62538,7077601,88116,64411,69059,118175-(35)4399,296167101,843-37.76249297916,04111,079314,129244,96969,160168,196Facilities acquisition and construction:1.155,8181,059,07796,74168,956Debt service:Principal retirementInterest and fiscal chargesTotal debt service37,63237,63237,63237,632--748,972268,9221,017,894TOTAL EXPENDITURES$164,314,272$163,458,819$ 855,453$155,410.734


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSales Tax Revenue Bonds Debt Service FundBudgetary Comparison ScheduleFor the Year Ended June 30, 2004With Comparative Actual Amounts for the Year Ended June 30, 20032004REVENUESBudgetActualVarianceFavorable(Unfavorable)2003ActualParish sources -Sales taxInterest9,558,071161,7089,503,637139,920$ (54,434) $ 9,556,639(21,788) 201,788Total revenues9,719,7799,643,557(76,222) 9,758,427EXPENDITURESCurrent:Support services -General administrationDebt service:Principal retirementInterest and fiscal charges13,7004,810,0004,748,3563,4004,904,0444,573,90710,300(94,044)174,4493,3004,555,0005,008,517Total expenditures9,572,0569,481,35190,7059,566,817Excess of revenuesover expenditures 147,723 162,206 14,483 191,610OTHER FINANCING SOURCES (USES)Proceeds from the issuance of debtTransfer to escrow agentTransfers inTransfers out(200,000)13,043,293 13,043,293(13,043,293) (13,043,293)(200,000) -(500,000)Total other financing sources (uses)(200,000)(200.000)(500,000)Excess (deficiency) of revenuesand other sources overexpenditures and other uses $ (52,277) (37,794) $ 14,483 (308,390)FUND BALANCE, BEGINNING 13,042,524 13,350,914FUND BALANCE, ENDING $13,004,730 $13,042,524


LAFAYETTE PARISH SCHOOL BOARDLafayette. LouisianaNonmajor Governmental FundsCombining Balance Sheet - By Fund TypeJune 30.2004With Comparative Totals for June 30, 2003SpecialRevenueDebtServiceCapitalProjects2004Totals2003ASSETSCash and interest-bearing depositsInvestmentsReceivables:Notes receivableDue from other fundsDue from other governmentalagencies -State Department of EducationOtherOtherPrepaid itemsInventory, at cost$ 4,712,369 $839,932-.3,415,533 1,1716,359.660-4,2243,718676,598$ 2,769,068285,32740,436267,128-6,914--$ 8,321,369 $285,32740,4363,683,8326,359,660-11,1383,718676,5986.193.9255,349.96675,8181.460,2395,595.3794,1168.832174,869696,748TOTAL ASSETS$15,172.102 $841,103$ 3,368,873$19,382,078 $ 19,559,892LIABILITIES AND FUND BALANCESLiabilities:Accounts payableContracts payableRetainage payableDue to other fundsDue to other governmental unitsDeferred revenueTotal liabilities$ 413,328 $ ---9,588,718 88018,3852.549,518 1,46512,569,949 2.345$ 89,227227,13158,71249,215--424,285$ 502,555 $227,13158,7129,638,81318,3852,550,98312,996,579579.673352.825127.56212,064,0194.022242,92213,371.023Fund balances:Reserved for encumbrancesReserved for inventoryReserved for incomplete contractsReserved for debt retirementUnreserved, designated for capital expendituresUnreserved, undesignatedTotal fund balances5,744491.514--2,104,895838,7582.602,153 838,758175,651-269,703-2,106,759392,4752,944,588181,395491,514269,703838,7582,106,7592,497,3706,385,49945,538512,923390,240922,7622,912.4471.404.9596,188,869TOTAL LIABILITIES ANDFUND BALANCES$15,172,102 $841,103 $3,368,873 $19,382,078 $19,559,892


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Governmental FundsCombining Statement of Revenues, Expenditures and Changes in Fund Balances - By Fund TypeFor the Year Ended June 30, 2004With Comparative Totals for the Year Ended June 30, 2003REVENUESParish sources -Ad valorem taxesSales taxesOtherState sourcesFederal sourcesTotal revenuesSpecialRevenue$-1,943,4273,915,26328,886,60434,745,294DebtServiceCapitalProjects$ 627,071 $526,18811,440 82,324--638,511 608,5122004Totals2003$ 627,071 !; 526,188627,368993,2592,037,1913,915,26328,886,60435,992,3171,913,4703,358,02026,033,34732,925,464EXPENDITURESCurrent;Instruction -Regular programsSpecial education programsVocational education programsOther instructional programsSpecial programsAdult and continuing education programsSupport services -Pupil support servicesinstructional staff support servicesGeneral administrationSchool administrationBusiness servicesOperation and maintenance of plant servicesStudent transportation servicesCentral servicesNon-instructional services -Food servicesCommunity servicesFacilities acquisition and constructionDebt service:Principal retirementInterest and fiscal charges725,4443,199,548488,0801,295,96611,866,4831,310,072889,9713,249,43211,99661,533286,407128,622198,760123,0979,662,071-•------60,4986,393-26,339 6.190--411.543249,865---2,633,7671,246,777470,559 834725,4443,199,548488,0801 ,356,46411,866,4831,310,072896,3643.249,43244,52561.533286,407540,165448,625123,0979,662,071-2,633,7671.246,777471,393846,3352,804,664609,924593,24011,006,0311,112,696810,9322,847,11546,48787,150227,730892,816324,29372,6619,060,499327,9615,606,504678,259425,664Total expenditures33,497,4821,743,675 3,369,09038,610,24738,380,961Excess (deficiency) of revenuesover expenditures1,247,812(1,105,164) (2,760,578)(2.617,930)(5,455,497)OTHER FINANCING SOURCES (USES)Proceeds from certificates of indebtednessProceeds from the issuance of debtTransfer to escrow agentTransfers inTransfers outTotal other financing sources (uses)--476,640(773,696)(297,056)3,250,0002,814,492(2,805,000)1,011,668 420,800(1,580,344)1,021,160 2,090,4563,250,0002,814,492(2,805,000)1,909,108(2,354,040)2,814,5601,325,000--905,313(1,987,271)243,042Excess (deficiency) of revenuesand other sources overexpenditures and other usesFUND BALANCES, BEGINNING950,7561,651,397(84,004) (670,122)922,762 3,614,710196,6306,188,869(5,212,455)11,401,324FUND BALANCES, ENDING$2,602,153$ 838,758 $ 2,944,588$ 6,385,499 : $6,188,869


NON-MAJORREVENUESPECIALFUNDSSpecial Revenue Funds are used to account for specific revenues that are legallyrestricted to expenditures for specific purposes.Consolidated Other (NCLB)The purpose of this fund is to account for federal funds received under Title II,III, IV, and V of the No Child Left Behind (NCLB) Act of 2001. These funds areused for various purposes including, but not limited to, staff development, drugeducation, innovative educational programs, and the purchase of equipment andcomputers for classrooms. Some of the funds are also used to support non-publicschools.Consolidated Special EducationThe purpose of this fund is to account for several federal and state programsrestricted to exceptional children with disabilities and the gifted. Donationsrestricted for use in handicapped programs are accounted for in this fund.Consolidated Adult EducationThe purpose of this fund is to account for federal, state, or local programs for adult,young adult, and early childhood education. These sources are utilized to provideinstruction to adults working toward high school diplomas, to provide counselingto potential high school dropouts, to provide instruction in vocational education tochildren with disabilities, and to provide continuing education courses.Consolidated Special RevenueThe purpose of this fund is to account for state and federal programs that providesupplemental education programs for high-risk children and teacher training.


Consolidated Federal ProgramsThe Consolidated Federal Programs Special Revenue Fund accounts for Title I,other federally funded programs, donations, and programs for pre-school andhomeless children. Title I of the No Child Left Behind (NCLB) Act of 2001 providesfunds for supplementary instruction with emphasis on reading and math. Thefederal funds for Title I are allocated and administered by the state for at-riskstudents.Child Development ProgramThe purpose of this fund is to account for federal funds used in the Headstart andLA-4 programs. Headstart funds provide a quality early childhood education forthree- and four-year-old children meeting federal poverty guidelines. LA-4 fundsprovide a quality pre-school education for every four-year-old child qualifying forfree/reduced lunch.Consolidated Other Federal ProgramsThe purpose of this fund is to account for federal funds used to break the cycle ofpoverty and illiteracy by integrating early childhood education, adult education,parenting education and parent and child interactive activities to ensure high riskchildren have equal opportunity.Consolidated Direct FederalThese federal funds support academic achievement by planning and implementationof small, safe, and successful learning environments in large public highschools. These funds also support programs to raise student achievement byimproving teachers' knowledge, understanding, and appreciation of AmericanHistory.School Food ServiceThe purpose of this fund is to account for the provision of meals to school children,including the breakfast and lunch programs. All activities necessary to provide suchmeals are accounted for in this fund including, but not limited to, administration,operations, and maintenance.


LAFAYETTE PARISHSCHOOL SYSTEM


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Special Revenue FundsCombining Balance SheetJune 30, 2004With Comparative Totals for June 30, 2003Consolidated Consolidated Consolidated ConsolidatedOther Special Adult SpecialNCLB Education Education RevenueASSETSCash and interest-bearing depositsInvestmentsReceivables:Due from other fundsDue from other governmentalagencies -State Department of EducationOtherPrepaid itemsInventory, at cost7,339 $ 16,520 $ 30,907 $ 819555 403,044 2,874,7951,232,709 842,220 270,608 1,123,61489TOTAL ASSETS$1,240,603 $ 858,829 $ 704,559$3,999,228LIABILITIES AND FUND BALANCESLiabilities:Accounts payableDue to other fundsDue to other governmental unitsDeferred revenueTotal liabilities$ 26,490 $ 24,876 $ 8,1761,211,628 817,344 543,3922,485 - 1481,240,603 842,220 551,716$ 7,6161,625,8086692,365,0193,999,112Fund balances:Reserved for encumbrancesReserved for inventoryUnreserved, undesignatedTotal fund balances47316,609 152,37016,609 152,843116116TOTAL LIABILITIES ANDFUND BALANCES $1,240,603 $ 858,829 $ 704,559 $3,999,228


ConsolidatedConsolidated Child Other Consolidated SchoolFederal Development Federal Direct Food TotalsPrograms Program Programs Federal Service 2004 200340,340 $ 1,359,123 $ 6,124 $ 137,053 $3,114,144 $ 4,712,369 $ 6,083,797509,11322,422 - 114,717 - - 3,415,533 1,393,1841,994,665 460,519 161,229 97,346 176,750 6,359,660 5,595,3794,135 - - - - 4,224 1,9183,718 - - - 3,718 174,869676,598 676,598 696,748$2,061,562 $ 1,823,360 $ 282,070 $ 234,399 $3,967,492 $15,172,102 $14,455,008128,746 $ 3,555 $ 12,199 $ 8,660 $ 193,010 $ 413,328 $ 545,5981,932,816 1,170,971 257,791 225,739 1,803,229 9,588,718 12,012,53415,083 - - - 18,385 4,022184,499 2,549,518 241,4572,061,562 1,189,609269,990234,399 2,180,73812,569,94912,803,611-633,7515,271-6,809491,5141,295,2405,744491,5142,104,89511,019512,9231,127,455633,75112,0801,786,7542,602,1531,651,397$2,061,562 $ 1,823,360 $ 282,070 $ 234,399 $ 3,967,492 $ 15,172,102 $ 14,455,00877


78LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Special Revenue FundsCombining Statement of Revenues, Expenditures and Changes in Fund BalancesFor the Year Ended June 30, 2004With Comparative Totals for June 30, 2003ConsolidatedOtherNCLBConsolidatedSpecialEducationConsolidatedAdultEducationConsolidatedSpecialRevenueREVENUESParish sourcesState sourcesFederal sourcesTotal revenues$-2.691,2602,691.260$ 6,571106,0904,337,0594,449,720$ 16,603-2,035,0592,051,662£*3,365,73834,2013,399,939EXPENDITURESCurrent:Instruction -Regular programsSpecial education programsVocational education programsOther instructional programsSpecial programsAdult and continuing education programsSupport services -Pupil support servicesInstructional staff support servicesGeneral administrationSchool administrationBusiness servicesOperation and maintenance of plant servicesStudent transportation servicesCentral servicesNon-instructional services -Food servicesCommunity servicesFacilities acquisition and constructionTotal expenditures---2,327.572-40,635212,2253,4002622.3 n2.370-2.588,7753003,184,591----453,229494,32039315,94816,57833,54572,4904,271,3943,964-412,569186,191112,726999,354121,82466,025-7,436-443-1,910,532680,872-19,0001,032,411203,347310,7187,0001,097,167-12,60536,819--3,399,939Excess (deficiency) of revenuesover expenditures102,485178,326141,130OTHER FINANCING SOURCES (USES)Transfers inTransfers outTotal other financing sources (uses)(102,485)(102.485)(175,401)(175,401)(47,577)(47,577)--Excess (deficiency) of revenues and other sourcesover expenditures and other usesFUND BALANCES, BEGINNING-2,92513,68493,55359,290116FUND BALANCES, ENDINGSS 16,609$ 152,843S 116


ConsolidatedFederalPrograms$ 131,1327,147,7017,278,83337,14114,9577,8185,646,920101,267741,3517,90023.741224,57563,33011,647123,0971.1557,004,899273,934(275,591)(275,591)(1,657)1,657ChildDevelopmentProgram$ 56,4164,594,6394,651,055-_3.309,7146,009413,831-1,5416,12428,8681 14,623--3,880,7 10770,345(159,388)(159,388)610,95722,794$ - $ 633,751ConsolidatedOtherFederalPrograms548,567548,56756,51169,546266,204160,007ConsolidatedDirectFederal237,764237,7643,167SchoolFoodServiceTotals224,51330366552,268(3,701)(3,539)(3,539)228,0499,715(9,715)(9,715)(7,240)19,320$ 12,080 $1,732,705443,4357,260,3549,436,4949,660,9169,660,916(224,422)476.640476,640252,2181,534,536$ 1,786,7542004$ 1,943,4273,915,26328,886,60434,745,294725,4443,199,548488,0801,295,96611,866,4831,310,072889,9713,249,43211,99661,533286,407128,622198,760123,0979,662,071--33,497,4821,247,812476,640(773,696)(297,056)950,7561,651,397$ 2,602,1532003$ 1,726,7173,358,02026,033,34731,118,084846,3352,804,664609,924566,87811,006,0311,112,696810,9322,847,11510,30387,150227,730178,099306,19672,6619,060,499327,961320,80031,195,974(77,890)371,542(817,619)(446.077)(523,967)2,175,364$ 1,651,397


80LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Special Revenue FundConsolidated Other NCLBSchedule of Revenues, Expenditures, and Changes in Fund BalanceBudget (GAAP Basis) and ActualFor the Year Ended June 30,2004With Comparative Actual Amounts for the Year Ended June 30, 2003REVENUESParish sourcesFederal sourcesTotal revenuesBudget2004Actual2,699,006 2,691,2602,699,006 2,691,260Variance -Favorable(Unfavorable)(7,746)(7,746)2003Actual> 25,8212,200,5352,226,356EXPENDITURESCurrent:Instruction -Special programsSupport services -Pupil support servicesInstructional staff support servicesGeneral administrationSchool administrationBusiness servicesOperation and maintenance of plant servicesNon-instructional services -Food servicesTotal expenditures2,335,318 2,327,57240,635212,2253,4002622,3112,37040,635212,2253,4002622,3112,3702,596,521 2,588,7757,7467,7461,997,0265,000119,0032,4001252,5347002,126,788Excess ofrevenuesover expenditures102,485 102,48599,568OTHER FINANCING USESTransfers out(102,485) (102,485)(99,568)Excess of revenues overexpenditures and other usesFUND BALANCE, BEGINNINGFUND BALANCE, ENDING


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Special Revenue FundConsolidated Special EducationSchedule of Revenues, Expenditures, and Changes in Fund BalanceBudget (GAAP Basis) and ActualFor the Year Ended June 30,2004With Comparative Actual Amounts for the Year Ended June 30, 2003REVENUESParish sourcesState sourcesFederal sourcesTotal revenues$Budget106,0904,406,8894,512,9792004Actual$ 6,571106,0904,337,0594,449,720Variance -Favorable(Unfavorable)$ 6,571-(69,830)(63,259)2003Actual$ 8,480112,0193,720,2323,840,731EXPENDITURESCurrent:Instruction -Regular programsSpecial education programsSupport services -Pupil support servicesInstructional staff support servicesGeneral administrationSchool administrationBusiness servicesOperation and maintenance of plant servicesStudent transportation servicesTotal expenditures3053,233,935460,252501,97939916,19516,83534,06573,6134,337,5783003,184,591453,229494,32039315,94816,57833,54572,4904,271,394549,3447,0237,65962472575201,12366,1842,780,009335,880435,18830310,44212,48739,09051,5703,664,969Excess of revenuesover expenditures175,401178,3262,925175,762OTHER FINANCING USESTransfers out(175,401)(175,401)^(171,813)Excess of revenues overexpenditures and other uses$2,925$ 2,9253,949FUND BALANCE, BEGINNING13,6849,735FUND BALANCE, ENDING$ 16,609$ 13,68481


82LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Special Revenue FundConsolidated Adult EducationSchedule of Revenues, Expenditures, and Changes in Fund BalanceBudget (GAAP Basis) and ActualFor the Year Ended June 30, 2004With Comparative Actual Amounts for the Year Ended June 30,2003REVENUESParish sourcesState sourcesFederal sourcesTotal revenues$Budget-2,087,4772,087,4772004Actual$ 16,603-2,035,0592,051,662Variance -Favorable(Unfavorable)$ 16,603-(52,418)(35,815)2003Actual$ 17,130319,1101,986,6752,322,915EXPENDITURESCurrent:Instruction -Regular programsVocational education programsOther instructional programsSpecial programsAdult and continuing education programsSupport services -Pupil support servicesInstructional staff support servicesSchool administrationOperation and maintenance of plant servicesTotal expenditures4,053421,845190,377115,2611,021,823124,56367,5107,6034531,953,4883,964412,569186,191112,726999,354121,82466,0257,4364431,910,532899,2764,1862,53522,4692,7391,4851671042,95691,099420,759201,265159,4461,111,563114,38899,64712,8035,1082,216,078Excess of revenuesover expenditures133,989141,1307,141106,837OTHER FINANCING USESTransfers out(47,577)(47,577)_(57,424)Excess of revenuesover expenditures and other usesS 86.41293,553$ 7,14149,413FUND BALANCE, BEGINNING59,2909,877FUND BALANCE, ENDING$ 152,843$ 59,290


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Special Revenue FundConsolidated Special RevenueSchedule of Revenues, Expenditures, and Changes in Fund BalanceBudget (GAAP Basis) and ActualFor the Year Ended June 30,2004With Comparative Actual Amounts for the Year Ended June 30, 20032004REVENUESState sourcesFederal sourcesBudget$ 3,309,81238,524Actual$ 3,365,73834,201Variance -Favorable(Unfavorable)$ 55,926(4,323)2003Actual$2,472,95830,925Total revenues3,348,3363,399,93951,6032,503,883EXPENDITURESCurrent:Instruction -Regular programsVocational education programsOther instructional programsSpecial programsAdult and continuing education programsSupport services -Pupil support servicesInstructional staff support servicesSchool administrationBusiness services670,53818,7121,016,741200,260306,0026,8941,080,51512,41436,260680,87219,0001,032,411203,347310,7187,0001,097,16712,60536,819(10,334)(288)(15,670)(3,087)(4,716)(106)(16,652)(191)(559)690,695-338,241235,7811,133_1,216,79611,6529,585Total expenditures3,348,3363,399,939(51,603)2,503,883Excess of revenuesover expenditures$SFUND BALANCE, BEGINNING116116FUND BALANCE, ENDING$ 116$ 11683


84LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Special Revenue FundConsolidated Federal ProgramsSchedule of Revenues, Expenditures, and Changes in Fund BalanceBudget (GAAP Basis) and ActualFor the Year Ended June 30, 2004With Comparative Actual Amounts for the Year Ended June 30, 2003REVENUESParish sourcesFederal sourcesTotal revenuesBudget$7,287,1337,287,1332004ActualVariancePositive(Negative)$ 131,132 $ 131,1327,147,701 (139,432)7,278,833 (8,300)2003Actual$ 11,2036,443,8926,455,095EXPENDITURESCurrent:Instruction -Regular programsSpecial education programsVocational education programsOther instructional programsSpecial programsSupport services -Pupil support servicesInstructional staff support servicesGeneral administrationSchool administrationBusiness servicesOperation and maintenance of plant servicesStudent transportation servicesCentral servicesNon-instructional services -Food servicesTotal expenditures37,14114,957-7,8185,653,563101,267741,3517,90023,741224,57563,33011,647123,0971,1557,011,54237,14114,957_7,8185,646,920 6,643101,267741,3517,90023,741224,57563,33011,647123,0971,1557,004,899 6,64320,04024,65516126,5814,692,123196,691657,5317,60021,593197,351104,998153,46572,6617106,176,160Excess of revenuesover expenditures275,591273,934 (1,657)278,935OTHER FINANCING USESTransfers out(275,591)(275,591)(277,594)Excess (deficiency) of revenues overexpenditures and other usesS(1,657) S (1,657)1,341FUND BALANCE, BEGINNING1,657316FUND BALANCE, ENDING$ -$ 1,657


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Special Revenue FundChild Development ProgramSchedule of Revenues, Expenditures, and Changes in Fund BalanceBudget (GAAP Basis) and ActualFor the Year Ended June 30, 2004With Comparative Actual Amounts for the Year Ended June 30, 2003REVENUESParish sourcesFederal sourcesTotal revenuesBudget4,604,4184,604,4182004Actual; 56,4164,594,6394,651,055Variance -Favorable(Unfavorable)56,416(9,779)46,6372003Actual$ 24,8954,559,0894,583,984EXPENDITURESCurrent:Instruction -Special programsSupport services -Pupil support servicesInstructional staff support servicesSchool administrationBusiness servicesOperation and maintenance of plant servicesStudent transportation servicesNon-instructional services -Community servicesTotal expendituresExcess of revenuesover expendituresOTHER FINANCING USESTransfers out3,309,7146,009413,8311,5416,12428,8681 14,623723,7083,309,7146,009413,8311,5416,12428,8681 14,6233,880,710 3,880,710770,345(159,388) (159,388)3,596,3596,305318,95030,5355,77328,903101,161327,9614,415,94746,637 168,037(202,256)Excess (deficiency) of revenuesover expenditures and other uses564,320 610,957$ 46,637(34,219)FUND BALANCE, BEGINNING22,79457,013FUND BALANCE, ENDING$ 633,751$ 22,79485


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Special Revenue FundConsolidated Other Federal ProgramsSchedule of Revenues, Expenditures, and Changes in Fund BalanceBudget (GAAP Basis) and ActualFor the Year Ended June 30, 2004With Comparative Actual Amounts for the Year Ended June 30, 2003REVENUESFederal sources2004Budget Actual$544,124 $548,567Variance -Favorable(Unfavorable)$ 4,4432003Actual$740,544EXPENDITURESCurrent:Instruction -Regular programsVocational education programsOther instructional programsSpecial programsSupport services -Pupil support services56,51169,546254,521160,00756,51169,546266,204160,007(11,683)44,501189,004791325,296152,668Total expenditures540,585552,268(11,683)712,260Excess (deficiency) of revenuesover expenditures3,539(3,701)(7,240)28,284OTHER FINANCING USESTransfers out(3,539)(3,539)(8,964)Excess (deficiency) of revenuesover expenditures and other usesFUND BALANCE, BEGINNINGFUND BALANCE, ENDING(7,240) $ (7,240)19,320$ 12,08019,320$ 19,32086


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Special Revenue FundConsolidated Direct FederalSchedule of Revenues, Expenditures, and Changes in Fund BalanceBudget (GAAP Basis) and ActualFor the Year Ended June 30,2004With Comparative Actual Amounts for the Year Ended June 30,2003REVENUESFederal sources2004Budget Actual; 237,764 $237,764Variance -Favorable 2003(Unfavorable) ActualEXPENDITURESCurrent:Instruction -Regular programsSupport services -Instructional staff support servicesGeneral administrationOperation and maintenance of plant servicesTotal expenditures3,167224,51330366228,0493,167224,51330366228,049----Excess of revenuesover expendituresOTHER FINANCING USESTransfers outExcess of revenues overexpenditures and other usesFUND BALANCE, BEGINNINGFUND BALANCE, ENDING9,7159,715(9,715) (9,715)87


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Special Revenue FundSchool Food ServiceSchedule of Revenues, Expenditures, and Changes in Fund BalanceBudget (GAAP Basis) and ActualFor the Year Ended June 30, 2004With Comparative Actual Amounts for the Year Ended June 30,20032004REVENUESBudgetActualVarianceFavorable(Unfavorable)2003ActualParish sourcesState sourcesFederal sources$1,826,789456,5556,863,200$1,732,705443,4357,260,354$ (94,084)(13,120)397,154$1,639,188453,9336,351,455Total revenues9,146,5449,436,494289,9508,444,576EXPENDITURESCurrent:Non-instructional services -Food servicesFacilities acquisition and constructionTotal expenditures9,397,624 9,660,916 (263,292) 9,059,089320,8009,397,624 9,660,916 (263.292) 9,379,889Deficiency of revenuesover expenditures(251,080)(224,422)26,658(935,313)OTHER FINANCING SOURCESTransfers in463,520476,64013,120371,542Excess (deficiency) of revenuesand other sources overexpenditures $ 212,440 252,218 $ 39,778 (563,771)FUND BALANCE, BEGINNING 1,534,536 2,098,307FUND BALANCE, ENDING $1,786,754 $1,534,536


NON-MAJOR DEBTSERVICE FUNDSDebt Service funds are used to account for the accumulation of resources for thepayment of debt principal, interest, and related costs.Consolidated School District #1The purpose of the fund is to accumulate funds for payment of one remainingbond issue. The bonds were issued by Consolidated School District No. 1 for thepurpose of acquiring land for building sites and playgrounds, purchasing, erectingand/or improving school buildings and other related facilities, acquiring necessaryequipment and furnishings and asbestos abatement. The bond issue is financedby a special property tax on property within the territorial limits of ConsolidatedSchool District No. 1 (Lafayette Parish).Other Debt ServiceThe purpose of this fund is to account for debt service expenditures that are notdirectly related to bond issues. Such debt includes certificates of indebtedness,lease financing, and qualified zone academy bonds (QZAB). This debt usuallyhas shorter terms and does not require a reserve fund or specific identificationof resources used to pay the debt. In an effort to more clearly disclose the totaldebt obligation of the School Board, this fund was established to allow specificidentification of debt obligations previously accounted for in various other funds.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Debt Service FundCombining Balance-SheetJune 30, 2004 and 2003With Comparative Totals for June 30, 2003ConsolidatedSchoolDistrict #1OtherDebtServiceTotals2004 2003ASSETSCash and interest-bearing depositsInvestmentsReceivables:Due from other fundsDue from other governmentalagencies$839,932 $1,171$839,932M71$ 53,341866,7704,116TOTAL ASSETS$841,103 $ $841,103 $924,227LIABILITIES AMD FUND BALANCESLiabilities:Deferred revenueDue to other fundsTotal liabilities1,465 $8802,345$ 1,4658802,345$ 1,465:,465Fund balance:Reserved for debt retirement838,758838,758 922,762TOTAL LIABILITIES ANDFUND BALANCES $841,103 $ $841,103 $924,227OQ


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Debt Service FundsCombining Statement of Revenues, Expenditures and Changes in Fund BalancesFor the Year Ended June 30,2004With Comparative Totals for June 30, 2003REVENUESParish sources -Ad valorem taxesOtherConsolidatedSchoolDistrict#]$ 627,07111,440OtherDebtService2004627,07111,440Totals2003627,36813,743Total revenues638,511638,511641,111EXPENDITURESCurrent:Support services -General administrationDebt service:26,33926,33926,319Principal retirement480,000766,7771,246,777460,000Interest and fiscal charges225,668244,891470,559183,323Total expenditures732,0071,011,6681,743,675669,642Deficiency of revenuesover expenditures(93,496) (1,011,668) (1,105,164)(28,531)OTHER FINANCING SOURCES (USES)Bond proceedsTransfer to escrow agentTransfers in2,814,492(2,805,000)1,011,6682,814,492(2,805,000)1,011,668Total other financing sources (uses)9,4921,011,6681,021,160Deficiency of revenuesand other sources overexpenditures and other uses(84,004)(84,004)(28,531)FUND BALANCES, BEGINNING922,762922,762951,293FUND BALANCES, ENDING$ 838,758 S $ 838,758 $ 922,762


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Debt Service FundConsolidated School District #1Schedule of Revenues, Expenditures, and Changes in Fund BalanceBudget (GAAP Basis) and ActualFor the Year Ended June 30,2004With Comparative Actual Amounts for the Year Ended June 30, 2003Budget2004ActualVarianceFavorable(Unfavorable) 2003REVENUESParish sources -Ad valorem taxesInterest$ 597,50410,800$ 627,07111,440$ 29,567640$ 627,36813,743Total revenues608,304638,51130,207641,111EXPENDITURESCurrent:Support services -General administrationDebt service:Principal retirementInterest and fiscal chargesTotal expenditures44,000 26,339 17,661480,000158,703682,703480,000225,668732,007(66,965;(49,304;26,319460,000183,323669,642Deficiency of revenuesover expenditures (74,399) (93,496) (19,097) (28,531)OTHER FINANCING SOURCES (USES)Proceeds from the issuance of debtTransfer to escrow agent2,814,492 2,814,492(2,805,000) (2,805,000)Total other financing sources (uses)9,492 9,492Deficiency of revenuesand other sources overexpenditures and other uses(74,399)(84,004)(9,605) (28,531)FUND BALANCE, BEGINNING922,762922,762951,293FUND BALANCE, ENDING $ 848,363 £ 838,758 $ (9,605) $ 922,762


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Debt Service FundOther Debt ServiceSchedule of Revenues, Expenditures, and Changes in Fund BalanceBudget (GAAP Basis) and ActualFor the Year Ended June 30, 2004With Comparative Actual Amounts for the Year Ended June 30, 2003Budget2004ActualVarianceFavorable(Unfavorable) 2003REVENUESEXPENDITURESDebt service:Principal retirementInterest and fiscal charges1,124,412355,077766,777244,891357,635110,186Total expenditures1,479,4891,011,668467,821Deficiency of revenuesover expenditures (1,479,489) (1,011,668) 467,821OTHER FINANCING SOURCESTransfers in 1,479,489 1,011,668 (467,821)Excess (deficiency) of revenuesand other sources overexpendituresFUND BALANCE, BEGINNINGFUND BALANCE, ENDING92


NON-MAJOR CAPITALPROJECTSFUNDSCapital projects funds are used to account for capital asset acquisition, construction,and improvements of public school facilities.Capital Improvements ProgramThe purpose of this fund is to account for the portion of the proceeds of the onepercent sales tax deposited on a monthly basis and dedicated to the purchase ofcapital improvements and equipment purchases.1999 Bond Construction FundProceeds from a $9,950,000 bond sale in early fiscal year 2000 were deposited tothis fund to complete the projects begun in the 1998 construction fund.Self-Funded Construction FundProceeds from a portion of the one percent sales tax are deposited on a monthlybasis to fund minor renovations and improvements. This allows a more timely andconscientious response to some of the renovations and improvement needs of theschool system.2001 Bond Construction FundProceeds from a $12,000,000 bond sale were deposited to this fund to constructa new elementary school of choice focusing on technology and the arts.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Capital Projects FundsCombining Balance SheetJune 30, 2004With Comparative Totals for June 30, 2003CapitalImprovements 1999 Bond Self-Funded 2001 BondProgram Construction Construction ConstructionTotals2004 2003ASSETSCash and interest-bearing depositsInvestmentsReceivables:Notes receivableDue from other fundsOther$679,59040,436250,4656,914$507,892 $ 1,565,846285,32716,663$ 15,740 $2,769,068285,32740,436267,1286.91456,7873,974,08375,81867,0556,914TOTAL ASSETS$977,405$507,892 $ 1,867,836 $ 15,740 $3,368,873 $ 4,180,657LIABILITIES AND FUND BALANCESLiabilities:Accounts payableContracts payableRetainage payableDue to other fundsTotal liabilities$ 67,12133.293100,414$ 4,9449,282187(4.41317,162227,13149,43015,503309,226232232$ 89.227227.13158,71249.215424.28534.075352,825127,56251.485565,947Fund balances:Reserved for encumbrances 173,219 1,440 992Reserved for incomplete contracts - - 269,703Unreserved -Designated for capital expenditures 311,297 492,039 1,287,915Undesignated 392,475 - -Total fund balances 876,991 493.479 1.558,61015,50815,508175,651269.7032.106,7592,944,58834,519390,2402,912,447277,5043,614,710TOTAL LIABILITIES ANDFUND BALANCES $977,405 $507,892 $1.867,836 $ 15,740 $3.368,873 $ 4,180,657


94LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNonmajor Capital Projects FundsCombining Statement of Revenues, Expenditures and Changes in Fund BalancesJune 30. 2004With Comparative Totals for June 30, 2003CapitalImprovements 1999 Bond Self-Funded 2001 BondProgram Construction Construction Construction2004Totals2003REVENUESParish sources:Sales taxesInterestMiscellaneousTotal revenues$326.18813,74234,748374,6787,0847,084$ 200,00026,217226,217533533$526.188 $993,25947.576 107,42434.748 65.586608,512 1,166,269EXPENDITURESCurrent.Other instructional programs •Equipment 60,498 60,498 26,362Pupil support services -Equipment6,3936.393General administration -Audit servicesLiability insuranceRepairs and maintenanceEquipment6,1906.1905,0802.8751,9106,1906,1909,865Operation and maintenance of plant servicesGrounds upkeep, repairs and maintenanceVehicle purchasesLease of buildingsProfessional and technical services304t.620409.326411.2502932935971,620409,326411.54345,89019.437425.218224.172Student transportation services -Equipment249,865249,86518.097


LAFAYETTE PARISH SCHOOL BOARDLafayette. LouisianaNonmajor Capital Projects FundsCombining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)For the Year Ended June 30, 2004With Comparative Totals for June 30,2003CapitalImprovements 1999 Bond Self-Funded 2001 Bond TotalsProgram Construction Construction Construction 20042003Facilities acquisition and constructionSalaries and employee benefitsArchitect and engineeringConstruction of buildingsImprovements to existing buildingsBuilding acquisitionsFurniture and equipmentLand improvementsProfessional and technical servicesMaterials and suppliesMiscellaneousDebt service;Principal retirementInterest and fiscal charges--205,0121,102,930---1 10,865-1,418,80783483415 117,3109.174 77,534119,01797.767 618,751 87,177..25,7631 72 2,29015,69843,892 400107.128 1,020,255 87,577..117,32586,708119,0171,008,7071,102,93044,292-25,763113,32715,6982,633,767834834113,777148,187936,5522,307,975919,611793,5892,25042,8452,81018,1085,285,704218,259242,341460,600Total expenditures2,153,837107,128 1,020,548 87,5773,369,0906,515,345Deficiency of revenuesover expenditures(1,779,159)(100,044) (794.331) (87,044)(2,760,578)(5,349,076)OTHER FINANCING SOURCES (USES)Proceeds from ihe issuance of deb!Transfers from other fundsTransfers to other fundsTotal other financing sources (uses)3,250,000420,800(1,580,344)2,090,456...3,250,000420,800(1,580,344)2,090,4561,325,000533,771(1,169,652)689,119Excess (deficiency) of revenuesand other sources overexpenditures and other uses311,297(100,044) (794,331) (87,044)(670,122)(4,659,957)FUND BALANCES. BEGINNING565,694593,523 2.352,941 102,5523,614,7108,274,667FUND BALANCES, ENDING$ 876.99) $493,479 S 1.558,610 $ 15,508 $ 2,944.588 $3,614.71095


LAFAYETTE PARISHSCHOOL SYSTEM


FIDUCIARYFUNDSAgency FundsSales Tax Fund: The purpose of this fund is to account for the collection anddistribution of sales and use taxes collected by the School Board on its own behalfand on the behalf of the Lafayette Parish Government and other taxing authoritieswithin Lafayette Parish.School Activity Fund: The purpose of this fund is to account for individual schoolfunds on deposit in various bank accounts.Private Purpose FundsThe Afro-American Education Fund: The purpose of this fund is to account forcontributions from private sources restricted to the provision of scholarship aid todeserving African-American students.The Student Loan Fund: The purpose of this fund is to provide loans to worthyhigh school graduates to enable them to continue their education. It is providedfor in Louisiana Revised Statute 17:1751 and has been inactive since it was established.The Kleban Trust Fund: The purpose of the fund is to account for contributionsfrom private sources restricted to the purchase of an award for an outstandingathlete at Comeaux High School.The Jowella Ardoin Trust Fund: The purpose of this fund is to account for thecontributions from fellow employees, friends and family that were to originally beused for a reward leading to the arrest and conviction of the intruder that took herlife. In 1999, a suspect confessed and the funds were set aside, as stipulated, tohelp cover future educational costs for her grandchildren.


97LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaAgency FundsCombining Statement of Assets and LiabilitiesJune 30, 2004With Comparative Totals for June 30, 2003ASSETSSatesTax FundSchoolActivityFundsTotals2004 2003Cash and interest-bearing depositsInvestments$5,951,5581,330$2,882,561319,018$8,834,119320,348$4,522,4274,729,896Total assets $5,952,888 $3,201,579 $9,154,467 $9,252,323LIABILITIESLiabilities:Due to other governmental unitsSchool activity funds payable$5,952,888 $ - $5,952,888 $6,214,8033,201,579 3,201,579 3,037,520Total liabilities $5,952,888 $3,201,579 $9,154,467 $9,252,323


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaAgency FundsCombining Statement of Changes in Assets and LiabilitiesFor the Year Ended June 30, 2004SALES TAX FUNDBalanceJuly 1,2003AdditionsDeductionsBalanceJune 30,2004ASSETSCash and interest-bearing depositsInvestmentsTOTAL ASSETS$1,800,8814,413,922$6,214,803$144,553,10011,703,619$156,256,719$140,402,42316,116,211$156,518,634$5,951,5581,330$5,952,888LIABILITIESDue to other governmental units$6,214,803$144,553,100$144,815,015$5,952,888SCHOOL ACTIVITY FUNDSASSETSCash and interest-bearing depositsInvestmentsTOTAL ASSETS$2,721,546315,974$3,037,520$ 10,362,6313,044$ 10,365,675$ 10,201,616$ 10,201,616$2,882,561319,018$3,201,579LIABILITIESSchool activity funds payable$3,037,520 $ 10,365,675 $ 10,201,616 $3,201,579TOTALS - ALL AGENCY FUNDSASSETSCash and interest-bearing depositsInvestmentsTOTAL ASSETSLIABILITIESDue to other governmental unitsSchool activity funds payableTOTAL LIABILITIES$4,522,4274,729,8966,214,8033,037,520$154,915,73111,706,663144,553,10010,365,675150,604,03916,116,211144,815,01510,201,616$8,834,119320,348$9,252,323 $166,622,394 $166,720,250 $9,154,4675,952,8883,201,579$9,252,323 $ 154,918,775 $ 155,016,631 $9,154,467


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSales Tax Agency FundComparative Schedule of Cash Receipts and DisbursementsFor the Years Ended June 30, 2004 and 2003RECEIPTSSales taxesHotel/motel taxInterest on investmentsTotal receipts2004 2003$143,046,5211,423,20183,378144,553,100$138,479,1211,257,57684,880139,821,577DISBURSEMENTSCollection costs:SalariesEmployer's contribution to retirement expenseGroup insuranceOffice supplies and equipmentPrintingPostageTelephoneComputer servicesLegal and professional feesTravelOffice space and utilitiesOtherTax proceeds distributed to taxing authorities, net ofcollection costsTotal disbursementsIncrease (decrease) in cash and investmentsCASH AND INVESTMENTS BALANCE, BEGINNING359,60651,70136,3669,7521,60335,3886,79224,549458,6478,94241,97835,4521,070,776143,744,239144,815,015(261,915)6,214,803339,34749,50937,6399,7363,67534,7216,89521,571412,3536,25240,60928,171990,478138,517,764139,508,242313,3355,901,468CASH AND INVESTMENTS BALANCE, ENDING$ 5,952,888$ 6,214,803


100LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSchool Activity Agency FundSchedule of Changes in Deposits Due OthersFor the Year Ended June 30,2004SchoolsAcadian MiddleAcadiana HighAlleman MiddleBoucher ElementaryBreaux, Paul MiddleBroadmoor ElementaryBroussard MiddleBurke ElementaryCarencro Heights ElementaryCarencro MiddleCarencro HighComeaux HighK. Drexel ElementaryDuson ElementaryEvangeline ElementaryErnest Gallet ElementaryJ. W. Faulk ElementaryJ.W. James ElementaryJudice MiddleL. Leo Judice ElementaryLafayette MiddleLafayette HighG. T. LindonLive OakEdgar Martin MiddleMilton ElementaryS. J. Montgomery ElementaryMoss AnnexN. P. Moss MiddleMyrtle Place ElementaryNorthside HighOssun ElementaryPlantation ElementaryPrairie ElementaryRidge ElementaryScott MiddleTruman ElementaryVermilion ElementaryWestside ElementaryWoodvale ElementaryYoungsville MiddleLafayette Parish Career CenterLafayette CharterAdult EducationCAPS/LAPS - LeRosenBalanceJuly 1,2003$ 30,121248,20555,4975,72164,76953,09851,23361,71912,77565,241161,874518,92844,74713,11018,61053,35022,93827,26347,41135,68829,302327,91250,12768,767106,49160,00380,73811,12814,99514,527128,70410,92924,28670,97128,307138,27915,5967,10824,788134,75669,99414,3733,634-9,507Additions$ 169,32!1,060,163367,27661,371278,024237,539185,740204,05045,095203,963900,1031,112,211113,15851,8841 13,040273,49736,397167,942191,20152,97188,6541,119,362212,47182,265418,302245,307117,65122,256114,53963,215391,369117,562237,661282,995194,398203,50418,00829,19569,810231,333168,30185,3188,2356,89312,125Deductions$ 172,8731,061.604357,89553.828301.876217,903197,483211,73647,842205,665877.3931,129,1711 17,87751,562100,105267,37838,554171,154170,17749,99787,2571,074,457212,38190,076410,071230,7621 10,77819.89499,86252,892420,210104,814214,633281,554200,335184,20320,53931,20966,420232,260157.08677,8918,8311,1869,942BalanceJune 30, 2004$ 26.569246,76464,87813,26440,91772,73439,49054,03310,02863,539184,584501,96840,02813,43231,54559,46920,78124.05168,43538,66230,699372,81750,21760,9561 14,72274,54887,61113,49029,67224,85099,86323,67747,31472,41222,370157,58013,0655,09428,178133,82981,20921,8003,0385,70711,690TOTAL BALANCES$ 3,037,520$ 10,365,675$10,201,616$ 3.201.579


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaPrivate Purpose Trust FundsCombining Balance SheetJune 30,2004With Comparative Totals for June 30, 2003ASSETSA fro-AmericanEducationFundStudentLoanFundKJebanTrustFundJowellaArdoinTrustFundTotals2004 2003Investments 9,242 14,982 2,207 13,490 39,92! 39,578Total assets $9,242 $14,982 $2,207 $13,490 $39,921 $39,578FUND BALANCESFund balances:Reserved for specific purposesTotal fund balances9,242 14,982 2,207 13,490 39,92 i 39,578$9,242 $14,982 $2,207 $13,490 $39,921 $39,578101


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaPrivate Purpose Trust FundsCombining Statement of Changes in Net AssetsFor the Year Ended June 30,2004With Comparative Totals for June 30,2003Afro-AmericanEducationFundStudentLoanFundKlebanTrustFundJowellaArdoinTrustFundTotals2004 2003ADDITIONSParish sources -Interest$ 89143 S 22129 $ 383 $ 575DEDUCTIONSSpecial programs404074Excess (deficiency) of revenuesover expendituresNET ASSETS, BEGINNING899,153143 (18) 129 343 50114,839 2,225 13,361 39,578 39,077NET ASSETS, ENDING$9,242$14,982 $2,207 $13,490 $39,921 $39,578102


CAPITAL ASSETSGOVERNMENTALILAFAYETTE PARISHSCHOOL SYSTEM


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSchedule of Capital Assets - By SourceJune 30,2004 and 2003CAPITAL ASSETSLandBuildings and improvementsFurniture and equipmentConstruction in progressTOTAL CAPITAL ASSETS2004 20035,771,814194,871,12317,342,010555,0815,771,814193,181,00317,269,641153,239$218,540,028 $216,375,697INVESTMENT IN CAPITAL ASSETS FROM:General and Capital Projects FundsFederal and state grantsSchool Food Service FundDonated land$213,888,5541,016,5072,958,783676,184$211,804,5261,026,5502,868,437676,184TOTAL INVESTMENT IN CAPITAL ASSETS $218,540,028 $216,375,697


104LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSchedule of Changes in Capital Assets - By FunctionFor the Year Ended June 30,2004Function July 1,2003 Additions Deductions June 30,2004SUPPORT SERVICESPupil support services $ 199,729,983 $ 2,028,103 $ 252,933 $ 201,505,153Instructional staff support services 1,262,476 - - 1,262,476General administration services 3,639,713 - - 3,639,713Business and central services 2,473,623 - - 2,473,623Operation and maintenanceof plant services 1,211,766 - - 1,211,766Student transportation services 7,904,897 312,330 325,011 7,892,216Total support services 216,222,458 2,340,433 577,944 217,984,947Construction in progress 153,239 661,856 260,014 555,081TOTAL CAPITAL ASSETS $216,375,697 $ 3,002,289 £ 837,958 5218,540,028


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSchedule of Capital Assets - By FunctionJune 30, 2004FunctionLandBuildingandImprovementFurnitureandEquipmentTotalsSUPPORT SERVICESPupil support servicesInstructional staff support servicesGeneral administration servicesBusiness and central servicesOperation and maintenanceof plant servicesStudent transportation services$5,715,428-33,50022,886--$191,582,638-2,833,859454,626--$ 4,207,0871,262,476772,3541,996,1111,211,7667,892,216$201,505,1531,262,4763,639,7132,473,6231,211,7667,892,216TOTAL SUPPORTSERVICESConstruction in progress$5,771,814 $ 194,871,123 $ 17,342,010 217,984,947555,081TOTAL CAPITAL ASSETS $218,540,028


LAFAYETTE PARISHSCHOOL SYSTEM


LAFAYETTE PARISHSCHOOL SYSTEM


LAFAYETTE PARISHSCHOOL SYSTEM


108LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LouisianaTable 1GOVERNMENT-WIDE REVENUES BY SOURCE (1)Last Three Fiscal Years (2)(Unaudited)FiscalYearGrants &ContributionsPropertyTaxesSales &Use TaxesNon-grantStateFundingInterest,Miscellaneous& ChargesTotal20022003200424,959,36930,724,90733,305,03825,298,07426,876,35630,012,45859,603,84570,419,48371,284,18976,520,39880,620,62081,888,2144,779,1654,079,9974,925,542191,160,851212,721,363221,415,441(1) Includes revenues from all governmental and internal service funds.(2) Only the last three fiscal years are shown because government-wide financial statements were not requireduntil GASB 34 was implemented.Source: Lafayette Parish School System


109LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LouisianaTable IIGOVERNMENT-WIDE EXPENSES BY FUNCTION (1)Last Three Fiscal Years (2)(Unaudited)FiscalYearInstructionSupportServicesFood&CommunityServicesInterest &FacilitiesAcquisitionTotal200220032004123,332,247134,779,650144,945,07654,462,57459,940,72964,635,4599,355,19910,097,15810,374,9995,579,3025,187,7866,101,532192,729,322210,005,323226,057,066(1) Includes expenses from all governmental and internal service funds.(2) Only the last three fiscal years are shown because government^wide financial statements were notrequired until GASB 34 was implemented.Source: Lafayette Parish School System


110LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LouisianaFUND FINANCIAL REVENUES BY SOURCE (1)Last Ten Fiscal Years(Unaudited)FiscalYear1995199619971998199920002001200220032004Ad ValoremTaxes13,012,90613,720,96816,919,45617,918,37518,787,67419,898,76220,943,95525,298,07426,876,35628,206,721LOCALSalesTaxes36,137,26039,451,68243,312,35347,982,99648,460,22249,369,48051,986,70759,603,84370,419,48371,284,189Other LocalRevenue6,357,8347,097,0427,358,7828,168,7139,634,0997,499,5736,919,6925,153,8454,438,1644,845,273(1) Includes revenues from all governmental funds.Source: Lafayette Parish School System


Table IIIFEDERALFederalRevenue15,494,45815,981,69916,961,24217,660,72619,493,18619,835,77017,994,99621,354,22926,652,14529,038,222StateEqualization62,255,44163,688,64567,182,38869,785,31671,754,28469,380,74267,909,36673,496,68676,977,41 180,755,409STATEOther StateRevenue7,677,6485,391,7585,009,2847,374,3127,032,8486,128,3906,006,3876,167,7847,294,0787,205,358Total140,935,547145,331,794156,743,505168,890,438175,162,313172,112,717171,761,103191,074,461212,657,637221,335,172Total Revenues1999-2004Jl 221,335,172^x^!2,657,637^^19^074,461•— m m^^175,162,313 |72,] 12,717 171,761,1031 999 2000 200 1 2002 2003 2004


LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LousianaFUND FINANCIAL EXPENDITURES BY FUNCTION (1)Last Ten Fiscal Years(Unaudited)Supporting ServicesFiscalYearInstructionRegularProgramsInstructionSpecialProgramsPupilSupportInstructionalStaffSupportGeneralAdministrationSchoolAdministration199519961997199819992000200120022003200452,295, 50254,096, 61061,432, 22661,711, 55467,835, 13967,156, 98967,844, 82373,884, 74880,895, 52685,712, 26826,913,56928,719,98431,216,70437,242,43040,275,80140,215,32939,218,18244,663,69451,378,76054,448,1165,624,2745,998,3626,459,1416,431,5246,760,4806,575,6416,620,9157,513,0038,016,6728,343,6464,685,7084,906,2765,100,9678,796,6188,627,3958,064,4407,081,4647,401,7489,577,5509,655,6431,361,9152,171,6252,089,4062,273,2812,129,3082,142,6751,949,6662,468,2392,999,9673,081,9436,263,2927,081,2297,222,1377,704,6718,192,7038,057,1418,335,0239,092,9729,997,53210,041,122(1) Includes expenditures from all governmental funds, excludes expenditures for debt service and facilitiesacquisition and constructionSource: Lafayette Parish School System


Table IVSupporting ServicesOtherBusinessService840,0251,1979831,2301,0641,1791,2691,3661,4421,599,980,390,213,521,113,089,684,398,206CentralServices11111048924940742868972074,3633895106491,43211508613776167817584112963SupportServices25242627282729323438731,993819,240562,316742,442312,393318,494548,108332,839712,955399,522Total124129142,765,916,007,020,174,259154,207,096164,587162,219163180200212,517,156,516,989,087,511,529,472,895,429Total Expenditures1999-2004$220,000,000$200,000,000$180,000,000$160,000,000$140,000,000$120,000,000$100,000,000$80,000,000$60,000,000164,587,516 162,219,989 163,517,0871999 2000 2001 2002 2003 20041 17


1 \ALAFAYETTE PARISH SCHOOL SYSTEMLafayette, LouisianaPROPERTY TAX LEVIES AND COLLECTIONSLast Ten Fiscal Years(Unaudited)CURRENTCURRENTASSESSMENTCOLLECTIONTAXTAXYEARYEARLEVYCOLLECTIONS (2)1994199534,211,83234,098,9451995199635,778,73835,695,4601996199739,491,25939,309,0211997199843,534,76943,482,9381998199943,147,94945,946,4591999200048,062,19747,753,2602000200150,897,85250,897,8502001200259,933,18957,405,6582002200363,897,73363,897,7182003200469,215,47369,215,484(1) Because interest and penalties are included, this percentage may exceed 100%.(2) Records of parish-wide tax collections obtained from the Lafayette Parish Sheriff Department-Tax Collectors Division.Source:Lafayette Parish School System & Lafayette Parish Sheriff Department Tax Collector Division


Table V%OFCURRENT TAXCOLLECTEDINTERESTANDPENALTIESTOTALTAXCOLLECTIONSRATIO OFTAXCOLLECTIONSTO LEVY (1)99.7%99,8%99.5%99.9%106.5%99.4%100.0%95.8%100.0%100.0%28,25449,26750,98949,00353,803174,78685,98482,731110,26279,67634,127,19935,744,72739,360,01043,531,94146,000,26247,928,04650,983,83357,488,38964,007,98069,295,16099.8%99.9%99.7%100.0%106.6% (1)99.7%100.2% (1)95.9%100.2% (1)100.1% (1)Property Tax Collections1995-2004$70,000,000$60,000,000$50,000,000 -$40,000,000 -$30,000,000$20,000,000$10,000,000 -$01995 1996 1997 1998 1999 2000 2001 2002 2003 2004


116LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LouisianaTable VIASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYLast Ten Fiscal Years(Unaudited)ASSESSEMENTYEARCOLLECTIONYEAR(1)TOTALASSESSEDVALUE(0TOTALTAXABLEVALUEESTIMATEDACTUALVALUERATIO OFASSESSED TOESTIMATEDVALUE19941995199619971998199920002001200220031995199619971998199920002001200220032004545,302,878691,859,146736,912,486783,185,323824,767,112879,927,7161,016,794,8541,063,999,0411,106,861,6671,213,764,199374,982,463394,084,426482,702,506520,232,400559,232,867592,233,411747,278,456794,612,876831,002,237925,133,8272,542,364,9563,231,671,7433,375,909,3303,512,304,3973,656,893,0803,800,907,8205,010,727,3235,161,547,6705,346,052,9706,061,235,78314.7%12.2%14.3%14.8%15.3%15.6%14.9%15.4%15.5%15.3%(1) The difference in total assessed value and total taxable value is due to ahomestead exemption of $75,000.NOTE: The following are the assessment rates:Land, net of homestead exemptionsResidential, net of homestead exemptionsAll others10%10%15%SOURCE: Lafayette Parish Tax Assessor


117LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LouisianaTable VIICOMPUTATION OF DIRECT AND OVERLAPPING/UNDERLYING GENERAL BONDED DEBTJune 30,2004(Unaudited)JurisdictionGeneralObligationBonded DebtOutstandingPercentageApplicabletoGovernmentAmountApplicabletoGovernmentDirect:Lafayette Parish School Board $ 2,810,000 100% $ 2,810,000Overlapping:Parish of LafayetteLafayette Parish Bayou Vermilion DistrictTotal Overlapping$ 18,606,000$ 18,606,000100% $ 18,606,000100%$ 18,606,000Underlying:Lafayette Public Power AuthorityTown of BroussardCity ofCarencroCity of ScottTown of YoungsvilleTotal Underlying$ 91,780,0004,595,1932,840,000780,0002,040,000$102,035,193100%100%100%100%100%$ 91,780,0004,595,1932,840,000780,0002,040,000$102,035,193Grand Total$123,451,193$123,451,193Source: Respective governmental entities


118LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LouisianaPROPERTY TAX RATES(Per $ 1,000 of Assessed Value)Last Ten Fiscal Years of Collection(Unaudited)1995 1996 1997Parish Tax 3.16 3.16 3.16Parish Tax (City) 1.58 1.58 1.58Airport Maintenance 1.46 1.46 1.46Courthouse and Jail Maintenance 2.34 2.34 2.34Library Maintenance n/a n/a n/aBridge and Maintenance 3.56 3.56 4.17Health Unit 1.01 1.01 1.01Juvenile Detention Home Maintenance 1.17 1.17 1.17Drainage Maintenance 2.68 2.68 2.82Teche Vermilion Fresh 1.00 1.00 1.00Water Maintenance n/a n/a n/aMinimum Security Facility Maintenance 2.06 2.06 2.06Public Improvement Bonds (B & I) 3.24 4.67 3.92Mosquito Abatement n/a n/a n/aSchool Tax (Constitutional) 4.59 4.59 4.59Special School Tax 7.27 7.27 7.27Special School Improvement Maintenance Operations 5.00 5.00 5.00School District #1 (B & I) 2.22 2.10 1.60Law Enforcement District 16.79 16.79 16.79Fire Protection District #1 (B & I) n/a n/a n/aFire Protection & Waterworks District #2 (B & I) n/a n/a n/aRoad District #1 (B & I) n/a n/a n/aRoad District #2 (B & I) n/a n/a n/aSchool - 1985 Operation 16.70 16.70 16.70Assessment District 1.62 1.62 1.62Library 1997-2006 2.48 2.91 2.91Lafayette Economic Development Authority 2.00 2.00 2.00Lafayette Parish Bayou Vermilion (B & I) 1.25 1.25 1.25Lafayette Parish Bayou Vermilion Maintenance 0.75 0.75 0.75Library 1999-2008 1.61 1.61 1.61Library 2003-2013 n/a n/a n/aSub-District of DDA 9.33 9.33 9.33_94.87 96.61 96.11Source: Parish of Lafayette Assessor-2004 Grand Recapitulation of the Assessment Roll for Lafayette Parish.


Table VIII1998 1999 2000 2001 2002 2003 20043.161.581.462.34n/a4.171.011.172.851.00n/a2.063.89n/a4.597.275.000.9016.79n/an/an/an/a16.701.622.912.001.250.751.61n/a9.333.161.581.462.34n/a4.171.011.172.851.00n/a2.063.89n/a4.597.275.000.9016.79n/an/an/an/a16.701.622.912.001.250.751.61n/a9.333.051.531.412.25n/a4.010.971.132.741.00n/a1.983.68n/a4.597.275.000.8016,79n/an/an/an/a16.701.562.801.920.450.751.55n/a9.333.051.521.412.25n/a4.011.001.132.741.00n/a1.983.101.504.597.275.000.8016.79n/an/an/an/a16.701.562.801.920.450.751.55n/a10.363.051.521.412.25n/a4.011.001.132.741.00n/a1.983.101.504.597.275.000.8016.79n/an/an/an/a16.701.562.801.920.450.751.55n/a10.363.051.521.412.25n/a4.011.001.132.741.00n/a1.983.101.504.597.275.000.8016.79n/an/an/an/a16.701.562.801.920.450.751.55n/a10.363.051.521.712.25n/a4.010.991.133.341.00n/a1.982.501.504.597.275.000.7216.79n/an/an/an/a16.701.562.801.790.200.751.551.6410.1595.41 95.41 93.26 95.23 95.23 95.23 96.49


170LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LouisianaTable IXPRINCIPAL TAXPAYERSFor the Year Ended June 30, 2004(Unaudited)TaxpayerType ofBusinessPercentAssessedTotalValuation Valuation (1)Bell South & SubsidiariesCommumications$29,268,5002.41%Stuller, Inc.Manufacturing13,082,9201.08%Iberia Savings BankFinancial Services11 ,68 1,9700.96%Bank OneFinancial Services10,616,1350.87%Wai Mart/SamsRetail Sales10,172,9400.84%Southwest LA Electric Memership Corp.Utilities8,883,0500.73%Halliburton Energy ServicesOilfield Service8,497,8300.70%Columbia HospitalsMedical7,366,2400.61%Baker Huges Oilfield OperationsOilfield Service6,681,2900.55%Cox CommunicationsCommunications6,495,6100.54%$112,746,485 9.29%(1) The total assessed valuation is based on the Abstract of Assessments, Parish of Lafayette-2004,in the amount of $1,213,764,199Source: Lafayette Parish Tax Assessor


LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LouisianaTable XCOMPUTATION OF LEGAL DEBT MARGINJune 30, 2004(Unaudited)Assessed Valuation $925,133,827Debt Limitation - 35% of Total Assessed Value $323,796,839Debt Applicable to Limitation:Total General Obligation Bonded Debt $2,810,000Less: Amount Available for Repaymentof General Obligation Bonds 841,103Total General Oligation Debt Applicable to Limitation 1,968,897Legal Debt Margin $321,827,942Source: Lafayette Parish School System121


122LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LouisianaTable XISTATE SUPPORT AND LOCAL SUPPORT PER STUDENTLast Ten Fiscal Years(Unaudited)FiscalYearNumberofStudentsStateSupportStateSupportPerStudentsTotalStudentExpendituresTotalCost PerStudent (1)LocalSupportLocalSupportPerStudents199519961997199819992000200120022003200430,37430,85730,65330,84330,47930,46629,31429,50929,80230,03869,933,08969,080,40372,191,67277,159,62878,787,13275,509,13273,900,79979,664,46784,271,48987,960,7672,3022,2392,3552,5022,5852,4782,5212,7002,8282,928123,192,131126,909,141137,483,915152,440,927162,853,034161,630,133164,767,381180,156,511200,529,472212,895,4294,0564,1134,4854,9425,3435,3055,6216,1056,7297,08840,444,69844,190,12251,525,16860,398,88764,301,58365,285,50068,390,52078,029,26790,168,19693,445,6031,3321,4321,6811,9582,1102,1432,3332,6443,0263,111(1) Includes General Fund and Special Revenue Funds, since these funds are more representative ofoperational cost, excluding debt service and capital projects funds.Source: Lafayette Parish School SystemTotal Cost Per Student (1)1995 1996 1997 1998 1999 2000 2001 2002 2003 2004


LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LousianaTable XIIRATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE ANDNET BONDED DEBT PER CAPITALast Ten Fiscal Years(Unaudited)FiscalYearPopulation(1)AssessedValue (2)GrossBondedDebtFundsAvailablein DebtServiceFundNetBondedDebtRatio ofNet BondedDebt toAssessedValueNetBondedDebt PerCapita19951996199719981999178,305180,222181,363184,521187,001374,982,463394,084,426482,702,506520,232,400559,232,8677,255,0006,700,0006,115,0005,495,0004,990,000633,616700,402850,3901,004,2181,127,9266,621,3845,999,5985,264,6104,490,7823,862,0741.8%1.5%1.1%0.9%0.7%373329242120002001200220032004188,620192,448192,714192,591194,239592,233,411747,278,456794,612,876831,002,237925,133,8274,595,0004,180,0003,745,0003,285,0002,810,0001,087,299996,463952,758924,227841,1033,509,7013,183,5372,792,2422,360,7731,968,8970.6%0.4%0.4%0.3%0.2%1917141210(1) Source: Lousiana Tech Survey ( 1995-1999, 2001-2004)U.S. Census (2000)(2) Source: Lafayette Parish Assessor - Collection Year Assessed Values.(3) Actual/Projection not available until January, 2005. Based on population count of previous year.123


124LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LousianaTable XIIIRATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERALBONDED DEBT TO TOTAL GENERAL AND SPECIAL REVENUE FUND EXPENDITURESLast Ten Fiscal Years(Unaudited)FiscalYearPrincipalPaymentsInterestPaymentsTotalDebt ServiceTotal Generaland SpecialRevenue FundExpendituresRatio of DebtService toTotal GeneralExpenditures1995199619971998199920002001200220032004(1)(1)(1)(1)0)(1)(1)(1)5,520,0006,015,0003,570,0004,690,0005,295,0045,427,9054,739,2765,239,6725,982,2316,150,8213,196,4832,939,9732,704,2022,745,7985,331,8635,317,3475,275,8935,443,2645,703,1035,082,9328,716,4838,954,9736,274,2027,435,79810,626,86710,745,25210,015,16910,682,93611,685,33411,233,753124,765,020129,916,174142,007,259154,207,096164,587,516162,219,989163,517,087180,156,511200,529,472212,895,4296.99%6.89%4.42%4.&2%6.46%6.62%6.12%5.93%5.83%5.28%Tolal Debt Service1999-200419992000 2001 2002 2003 2004Source: Lafayette Parish School System(1) Includes debt service payments made by the General Fund and Capital Improvements ProgramFund, excluding any bond issuance costs.


LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LousianaTable XIVDEMOGRAPHIC STATISTICSLast Ten Fiscal Years(Unaudited)Public SchoolsPrivate SchoolsYearEndedJune 30EstimatedPopulationTotalUnemploymentRate(l)TotalSchoolEnrollmentNumberofStudentsNumberofStudents%ofTotalStudents1995199619971998199920002001200220032004178,305180,222181,363184,521187,001188,620192,448192,714192,591194,239(2)(2)(2)(2)(2)(2)(2)(2)(2)(2)6.3%4.7%4.7%4.5%4.7%4.3%4.2%4.9%5.3%5.2%37,19638,24137,42537,33837,75337,63436,62737,10937,54737,49630,37430,85730,65330,84330,47930,46629,31429,50929,80230,0386,7636,9106,9417,0747,2747,1687,3137,6007,7457,45818.2%18.1%18.5%18.9%19.3%19.0%20.0%20.5%20.6%19.9%(1) U.S. Department of Labor(2) Lousiana Tech SurveyTotal Enrollment for Public and Private Schools40,00035,00030,00025,00020,00015,00010,0005,00001995 1996 1997 1998 1999 2000 2001 2002 2003 2004125


126LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LouisianaPROPERTY VALUES, CONSTRUCTION, AND BANK DEPOSITSLast Ten Years(Unaudited)Lafayette Parish Property Value (1)AssessmentYearCollectionYearResidentialandCommercialLandResidentialCommercialAgriculturalStateAssessed1994199519961997199819992000200120022003(4) 199519961997199819992000200120022003200479,529,637104,726,587107,984,543112,622,878116,725,142123,696,613143,152,432147,713,892151,994,430171,328,974198, 111,506257, 726,429267, 571,340279, 112,490291, 739,160308,348,433406,065,778417,597,262433, 116,447496, 145,517213,940,395275,420,190305,938,693334,178,055357,149,910386,603,100403,070,319432,902,970457,320,431481,329,1853,144^103,162,3403,126,3303,077,4703,042,2402,939,5602,992,0352,921,2072,876,0892,648,07350,577,03050,823,60052,291,58054,194,43056,110,66058,340,01061,514,29062,863,71061,554,26062,312,4501I) Lafayette Parish Tax Assessors Office(2) Parish Of Lafayette, Metro Code(3) F.D.I.C. - Total demand deposits from Lafayette Parish Banks & Thrifts @ 6/30/04.(4) Residential and commercial property values previously included land values. Subsequent to 1994, landvalues are shown separately.


Table XVCommercialConstruction (2)ResidentialConstruction (2)Total Units Total Units TotalBankDeposits (3)(Millions)545,302,878691,859,146736,912,486783,185,323824,767,112879,927,7161,016,794,8541,063,999,0411,106,861,6571,213,764,1996189819412670102941059627,943,42755,920,64749,159,78844,790,54592,149,64267,540,76545,064,26793,562,693105,693,80774,067,76278069383776171862851068284891776,985,96367,313,15587,122,76684,054,15191,562,47083,677,62073,833,80091,700,483112,918,401132,937,4781,941,3441,796,8542,112,3462,369,0182,278,0192,290,0322,509,9002,463,0002,683,4752,780,545177


128LAFAYETTE PARISH SCHOOL SYSTEMLafayette, LouisianaXVIMISCELLANEOUS STATISTICAL DATA(Unaudited)-SIXTH LARGEST SCHOOL PARISH IN THE STATE-Year of Organization: 1870-Geographical Area:270 Square Miles-Parish Population: 194,239-Accreditation:Southern Association ofColleges and SchoolsNumber of Schools in Lafayette ParishStudent EnrollmentElementary 24 Elementary 13,949Middle 11 Middle 7,758High 6_ High 8,331Total 41 Total 30,038Number of Teachers and Level of DegreeNumber of% ofDegree Teachers TotalBachelor of Arts 1,570 65.6%Masters Degree 565 23.6%Masters Degree +30 197 8.2%Educational Specialist 56 2.3%Doctorate 7_ 0.3%Total 2,395 100.0%Enrollment Projections2005 29,8142006 30,1912007 30,5512008 30,8472009 30,875Source: Lafayette Parish School System


yDITLAFAYETTE PARISHSCHOOL SYSTEM


KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTSC. Burton Kolder. CPA"Russell F. Champagne. CPA*Victor R. Slaven. CPA*Conrad O. Chapman, CPA'WEB SITE:P Troy Courville, CPA' ^^ KCSRCPAS COMGeraW A Thibodeaux. Jr., CPA'WWW.KCSRCPAS.COMRoberts. Carter. CPAKennath J. Rachal. CPACheryl L. Barttey. CPA. CVA•AM.MAtt^cfewnfenREPORT ON COMPLIANCE AND ON INTERNAL CONTROLOVER FINANCIAL REPORTING BASED ON AN AUDIT OFFINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITH GOVERNMENT AUDITING STANDARDSMEMBER OF:AMERICAN INSTITUTE OFCERTO PUBLIC ACCOUNTANTSSOCIETY OF LOUISIANACERTIFIED PUBLIC ACCOUNTANTSDr. James H. Easton Superintendent,and Members of the Lafayette Parish School BoardLafayette, LouisianaWe have audited the financial statements of the governmental activities, each major fund, and theaggregate remaining fund information of the Lafayette Parish School Board, (the School Board) as of and forthe year ended June 30, 2004, which collectively comprise the School Board's basic financial statements andhave issued our report thereon dated November 12, 2004. We conducted our audit in accordance withauditing standards generally accepted in the United States of America and the standards applicable tofinancial audits contained in Government Auditing Standards, issued by the Comptroller General of theUnited States.ComplianceAs part of obtaining reasonable assurance about whether the School Board's financial statements arefree of material misstatement, we performed tests of its compliance with certain provisions of laws,regulations, contracts, and grants, noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of our audit, and accordingly, we do not express such an opinion. The resultsof our tests disclosed an instance of noncompliance that is required to be reported under GovernmentAuditing Standards and which is described in the accompanying summary schedule of current and prior yearaudit findings and corrective action plan as item 04-1 (C).Internal Control Over Financial ReportingIn planning and performing our audit, we considered the School Board's internal control overfinancial reporting in order to determine our auditing procedures for the purpose of expressing our opinionson the financial statements and not to provide assurance on the internal control over financial reporting.However, we noted a certain matter involving the internal control over financial reporting and its operationthat we consider to be a reportable condition. Reportable conditions involve matters coming to our attentionrelating to significant deficiencies in the design or operation of the internal control over financial reportingthat, in our judgment, could adversely affect the School Board's ability to record, process, summarize, andreport financial data consistent with the assertions of management in the financial statements. The reportablecondition is described in the accompanying summary schedule of current and prior year audit findings andcorrective action plan as item 04-2 (1C).183 South Beadle 1 13 East Bridge Street 133 East Waddil 1234 David Drive, Suite 105 408 W. Cotton Street 332 W. Sixth Avenue 200 South Main StreetUfiyette. LA 70508 Breaux Bridge, LA 70517 Marksville, LA 71351 Morgan City, LA 70380 Ville Platte, LA. 70586 Oberiin. LA 70655 Abbeville, LA 70SIOPhone(337) 232-4141 Phone (337) 332-4020 Phone(3IS) 253-9252 Phone (985) 384-2020 Phone (337) 363-2792 phone (337) 639-1737 Phone (337) 893-7944Fax (337) 232-8660 Fax (337) 332-2867 Fax (318) 253-868 1 Fax (985) 384-3020 Fax (,337) 363-3049 Fax (337) 639-4568 Fax (337) 893-7946


A material weakness is a condition in which the design or operation of one or more of the internalcontrol components does not reduce to a relatively low level the risk that misstatements in amounts thatwould be material in relation to the financial statements being audited may occur and not be detected within atimely period by employees in the normal course of performing their assigned functions. Our considerationof the internal control over financial reporting would not necessarily disclose all matters in the internal controlthat might be reportable conditions and, accordingly would not necessarily disclose all reportable conditionsthat are also considered to be material weaknesses. However, we believe the reportable condition describedabove is a material weakness.This report is intended for the information of the School Board, the School Board's management, andfederal awarding agencies and pass-through entities and is not intended to be and should not be used byanyone other than these specified parties. However, this report is a matter of public record and its distributionis not limited.Kolder> Champagne, Slaven & Company, LLCCertified Public AccountantsLafayette, LouisianaNovember 12,2004130


C. Burton Kolder. CPA"Russell F. Champagne, CPA*Victor R. Slavan. CPA"Conrad O. Chapman. CPA'P. Troy Courville. CPA*Gerald A. Thibodeaux. Jr.. CPA'HOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTSF.WWW www.Ki,SRCPA!>.t,UMKCSRCPAS COMRoberts. Carter, CPAKenneth J. Rachal, CPAChwyl L. Bartley, CPA. CVAMEMBER OF:AMERICAN INSTITUTE OFCERT1FIE ° **ACCOUNTANTSSOCIETY OF LOUISIANACERTIREDPUBUCACCOUNTANTS* A Professional Accounting CorporationREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLETO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVERCOMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A- 133Dr. James H. Easton, Superintendentand Members of the Lafayette Parish School BoardLafayette, LouisianaComplianceWe have audited the compliance of the Lafayette Parish School Board (the School Board) with thetypes of compliance requirements described in the U. S. Office of Management and Budget (OMB) CircularA-133 Compliance Supplement that are applicable to each of its major federal programs for the year endedJune 30, 2004. The School Board's major federal programs are identified in the summary of auditor's resultsSection of the accompanying schedule of findings and questioned costs. Compliance with the requirements oflaws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility ofthe School Board's management. Our responsibility is to express an opinion on the School Board'scompliance based on our audit.We conducted our audit of compliance in accordance with auditing standards generally accepted inthe United States of America; the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits ofStates. Local Governments and Non-Profit Organizations. Those standards and OMB Circular A-133 requirethat we plan and perform the audit to obtain reasonable assurance about whether noncompliance with thetypes of compliance requirements referred to above that could have a direct and material effect on a majorfederal program occurred. An audit includes examining, on a test basis, evidence about the School Board'scompliance with those requirements and performing such other procedures as we considered necessary in thecircumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does notprovide a legal determination of the School Board's compliance with those requirements.In our opinion, the School Board complied, in all material respects, with the requirements referred toabove that are applicable to its major federal program for the year ended June 30,2004.183 South BeadleLafayette,LA 70508Phone (337) 232-4 141Fax (337) 232-8660113 East Bridge StreetBreaux Bridge, LA 70S 17Phone (337) 332-4020Fax (337) 332-2867133 East WsddilMarksville. LA 71351Phone (318) 253-9252Fax (318) 253-86811234 David Drive, Suite 105Morgan City, LA 70380Phone (985) 384-2020Fax (985) 384-3020408 W. Cotton StreetVille Matte, LA 70586Phone (337) 363-2792Fax (337) 363-3049332 W. Sixth AvenueOberlin, LA 706S5Phone (337) 639^737Fax (337) 639-4568200 South Main StreetAbbeville. LA 70510Phone (137) 893-7944Fax (337) 893-7946


132Internal Control Over ComplianceThe management of the School Board is responsible for establishing and maintaining effectiveinternal control over compliance with the requirements of laws, regulations, contracts and grants applicable tofederal programs. In planning and performing our audit, we considered the School Board's internal controlover compliance with requirements that could have a direct and material effect on a major federal program inorder to determine our auditing procedures for the purpose of expressing our opinion on compliance and totest and report on the internal control over compliance in accordance with OMB Circular A-133.Our consideration of the internal control over compliance would not necessarily disclose all mattersin the internal control that might be material weaknesses. A material weakness is a condition in which thedesign or operation of one or more of the internal control components does not reduce to a relatively low levelthe risk that noncompliance with applicable requirements of laws, regulations, contracts, and grants thatwould be materia! in relation to a major federal program being audited may occur and not be detected within atimely period by employees in the normal course of performing their assigned functions. We noted nomatters involving the internal control over compliance and its operation that we consider to be materialweaknesses.This report is intended for the information of the School Board, the School Board's management, andfederal awarding agencies and pass-through entities and is not intended to be and should not be used byanyone other than these specified parties. However, this report is a matter of public record and its distributionis not limited.Kolder, Champagne, Slaven & Company, LLCCertified Public AccountantsLafayette, LouisianaNovember 12,2004


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSchedule of Expenditures of Federal AwardsFor the Year Ended June 30,2004Federal Grantor/Pass-Through Grantor/Program TitleProjectNumberCFDANumberRevenueRecognizedExpendituresU. S. Department of Education:Direct Program:Project SaveS184K00010784.184K123,674123,674Project FactT293B00005484.293B21,46021,460Project LifeT294A02009284.294A1 1,0371 1,037Smaller Learning CommunitiesV215L03205084.2 15L103,909103,909Teaching American HistoryU2 15X03002884.2I5X133,855133,855Passed through State Department of Education:Adult Education State Grant Programs -Adult Education Basic ProgramAdult Education Program CarryoverAdult Eduction Family LiteracyAdult Eduction Family LiteracyAdult Education Language/CivicsAdult Education English/CivicsAdult Education One Stop CenterAdult Education One Stop CenterAdult Education CorrectionsAdult Literacy Partnership0444-28, 0344-280244-28-C0343-280443-280307-280407-280313-280413-280423-2860363784.002A84.002A84.002A84.002A84.002A84.002A84.002A84.002A84.002A84.002A356,2577,711(05145,5388,54211,0933554,12815,538213.564762,831356,2577,711105145,5388,54211,0933554,12815,53896,579645,846After School Learning Center -21st Century Community Learning Centers03-CC-2884.287C365,685365,685Advanced Placement Fee -Advanced Placement Fee Payment Program280426-2884.330A513513Vocational Education-Basic Grants to States -Carl Perkins Basic GrantCarl Perkins Basic Grant280402-28280302-28-C84.048A84. 048 A369,4388,508377,946369,4388,508377,946Safe and Drug Free Schools & Comm. -IASA Title IV C/O 03IASA Title IV FY 04IASA Title IV FY 03IASA Title IV C/O 0303-70-28-C/O 0404-70-2803-70-2802-70-0884.186A84.186A84.186A84.186A41,151126,9002,95211,753182,75641,151126,9002,95211,753182,756Special Education-Preschool Grants -SPED IDEA-PartB, 3-5SPED IDEA-PartB, 3-503-P1-2804-P1-2884. 173 A84.173A30,517146,96230,517146,962Special Education-Grants to States -SPED IDEA-Part BSPED IDEA-Part BSPED IDEA-SupplementalLA. Assistive Technology03-B1-2803-B 1-28,04-61-2828-03-B8-282803TR2884.027A84.027A84.027A84.027A1,175,7692,818,729139,46825,6154,337,0601,175,7692,818,729139,46825,6154,337,060(continued)


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSchedule of Expenditures of Federal Awards (Continued)For the Year Ended June 30, 2004Federal Grantor/Pass-Through Grantor/Program TitleProjectNumberCFDANumberRevenueRecognizedExpendituresTitle I Grants to Local Education Agencies -Title I-Part A Basic GrantIASA Title 103-TI-28,04-TI-2803-T1-28C/00484.0 1 OA84.0 10A6,658,818488,8837,147,7016,658,818488,8837,147,701Innovative Education Program Strategies -IASA Title VIASA Title VI03-80-28, 04-80-2802-00-2884.298A84.298A136,7373,121139,858136,7373,121139,858English Language Acquisition -IASA Title III Student InfluxIASA Title III FY 04IASA Title III FY 0304-S3-28, 03-S3-282804-60-2803-60-2884.365A84.365A84.365A29,33231,85914,02475,21529,33231,85914,02475,215Eisenhower Professional Development State Grants -IASA Title HIASA Title IIIASA Title II04-50-28, 03-50-2803-50-28 C/O 0302-50-28 C/O 0384.28 1 A84.281A84.281 A1,848,58665,57813,5801,927,7441,848,58665,57813,5801,927,744Education for Homeless Children and Youth -HomelessHomeless04-HI-28, 03-H1-2802-HI-28-C84.I96A84.196A72,1312,58474,71572,1312,58474,715Even Start-State Educational Agencies -Even StartEven Start04-F1-28, 03-FI-2802-FI-28-C84.213C84.213C241,12912,411253,540241,12912,411253,540Temporary Assistance For Needy Families-Adult Ed LEA/LCTCSAdult Ed Fame 1STEarly Childhood DevelopmentTANF-Pre GEDFamily/Adult Literacy WorkkeysStarting Points Preschool03LG-28590507CFMS#6016860336-28, 280436-2803WK-280438-2893.55893.55893.55893.55893.55893.55853,10664,1963,307,75649,271147,920120,5613,742,81053,106105,4673,039,20456,511147,920103,6663,505,874Refugee Children -Refugee Children School Impact04-X3-28, 03-X3-2893.57620,67120,671Education Technology State Grant-Enhancing Education through Technology0449-28, 0349-2884.3 1 8X173,975173,975Total U.S. Department of Education19,976.95519.623.034U.S. Department of Transportation:Passed through State Department of Transportation -Preteen Pedalers Program744-28-000720.20534,20134,201(continued)134


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSchedule of Expenditures of Federal Awards (Continued)For the Year Ended June 30,2004Federal Grantor/Pass-Through Grantor/Program TitleProjectNumberCFDA RevenueNumber Recognized^ ExpendituresU.S. Department of Health and Human Services:Passed through State Department of Social Services-Family Independence Work Program 583407Child Care 58893493.55878,06393.558 1,082,88478,063740,475Passed through the Louisiana Supreme CourtTruancyN/A93.558160,004160,004Passed through SMILE Community Action Agency-Head StartTotal U.S. Department of Health and Human ServicesN/A93.600 204,000204,0041,559,152 1,216,747U.S. Department of Labor:Passed through local Workforce Investment Act Office -W.I.A. Comp. Training for Youth Development 595, 592W.l.A. Innovative Youth Training Program 594, 59117.250A17.250A61,08829,05661,08829,056Total U.S.Department of Labor90,14490,144Food and Consumer Service:Passed through State Department of Agriculture -USDA CommoditiesN/A10.550543.507550,524Passed through State Department of Education -National School Lunch Program -National School Lunch-School MilkAfter School Snack ProgramN/AN/A10.555A10.555A4,965.796121,4415,087,2374,965,796121,4415,087,237School Breakfast Program -National School Breakfast ProgramN/A10.553A1,302,7801,302,780Summer Food Service Program for Children -Summer Food Service ProgramN/A10.559A326,829326,829Total Food and Consumer Service7,260,3537,267,370U.S. Department of Defense.NJROTC ProgramN/AN/A151,618151,618TOTAL FEDERAL AWARDS$ 29,038,222 $ 28,348,913135


136LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaNotes to Schedule of Expenditures of Federal AwardsYear Ended June 30, 2004(1) GeneralThe accompanying Schedule of Expenditures of Federal Awards presents the activity of allfederal financial assistance programs of the Lafayette Parish School Board (the School Board). TheSchool Board reporting entity is defined in Note 1 to the basic financial statements for the year endedJune 30, 2004. All federal financial assistance received directly from federal agencies is included onthe schedule as well as federal financial assistance passed through other government agencies. Thefollowing programs are considered major federal programs of the School Board: School FoodService.(2) Basis of AccountingThe accompanying Schedule of Expenditures of Federal Awards is presented using themodified accrual basis of accounting, which is described in Note 1 to the School Board's basicfinancial statements for the year ended June 30, 2004.(3) Relationship to Fund Financial StatementsFederal financial assistance revenues are reported in the School Board's fund financialstatements as follows:From federal sources:General Fund $ 151,618Special Revenue Funds 28,886,604Total $29,038,222(4) Relationship to Federal Financial ReportsAmounts reported in the Schedule of Expenditures of Federal Awards agree with the amountsreported in the related federal financial reports except for the amounts in reports submitted as of adate subsequent to June 30,2004, which will differ from the schedule by the amount of encumbrancesas of June 30,2004.


137LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSchedule of Findings and Questioned CostsYear Ended June 30,2004Part I.Summary of Auditor's Results:1. An unqualified report was issued on the financial statements.2. A reportable condition in internal control was disclosed by the audit of the financialstatements. The reportable condition was considered to be a material weakness.3. There was one material instance of noncompliance.4. No reportable conditions in internal control over the major program were disclosed by theaudit of the financial statements.5. An unqualified opinion was issued on compliance for the major programs.6. The audit disclosed no audit findings required to be reported under Section 510(a) of CircularA-133.7. The following program was considered to be a major program: School Food Service.8. The dollar threshold used to distinguish between Type A and Type B programs, as describedin Section 520(b) of Circular A-133 was $850,467.9. The auditee did qualify as a low-risk auditee under Section 530 of Circular A-133.Part II.Findings which are required to be reported in accordance with generally accepted GovernmentalAuditing Standards:Compliance Findings-See Compliance Finding 04-1 (C) on the Summary Schedule of Current and Prior Year AuditFindings and Corrective Action Plan.Internal Control -See Internal Control Finding 04-2 (1C) on the Summary Schedule of Current and Prior YearAudit Findings and Corrective Action Plan.Part III. Findings and questioned costs for Federal awards which include audit findings as defined in Section510(a) of Circular A-133:There are no findings that are required to be reported under the above guidance.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSummary Schedule of Current and Prior Year Audit Findingsand Corrective Action PlanFor the Year Ended June 30, 2004Fiscal YearFindingCorrectiveInitiallyActionRef. No Occurred Description of Finding TakenCURRENT YEAR (6/30/04) --Compliance:04-1 (C) 2003 The School Board violated Article 7 Section 14 of the Louisiana Noconstitution by expending school activity funds on meals and gifts duringthe fiscal year ended June 30, 2004.Internal Control:04-2 (1C) 2004 The School Board did not properly follow the established control Noprocedures to insure complete and accurate fixed asset listings. Thefixed asset records should be supported by adequate supportingdocumentation.138


Corrective Action PlanName ofContactPersonAnticipatedDate ofCompletionManagement has spent considerable efforts to come to a resolution on this issue.Under the guidance of our auditors and the Louisiana Legislative Auditor, wehave created a new policy setting up a special fund to handle issues of employeeappreciation without violating Article 7 Section 14 of the Louisiana Constitution.However, the adoption of the policy by the School Board has been delayed toallow input from site administrators who are questioning some of the details ofthe policy and what exactly would cause a violation of the law. Discussions areongoing on this issue with the goal of quickly bringing a policy to the Board thatwould both meet the needs of the school and not violate any laws.Matt Dugas,Director ofFinance2/16/05In the past management implemented the proper procedures to adequately insurecomplete and accurate fixed asset listings. Part of the process of setting up theproper procedures, as recommended by literature available on the subject, was toraise the threshold to a more manageable level. The raising of the thresholdprovided greater control over a smaller number of more valuable assets.Unfortunately, the State informed us that the threshold had to be set to $1,000 forfixed assets even though Federal grant regulations allow a threshold of $5,000.The lowering of the threshold substantially increased the number of assets thathad to be tracked even though the dollar value of the assets is consistent withprior years. In addition, the staff member in charge of accounting for fixed assetsexperienced a life threatening illness which, unknown to management, caused aloss of focus on the area. Now that management is aware of the problem, staffingissues have been addressed. Beginning in January of 2005, a clerical levelemployee will be assigned to deal with some of the volume issues caused by thelower threshold. This person will be under the direction of a new staffaccountant hired to replace the retiring employee formerly in charge of fixedassets.Matt Dugas,Director ofFinance6/30/05(continued)139


140LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSummary Schedule of Current and Prior Year Audit Findingsand Corrective Action PlanFor the Year Ended June 30, 2004Ref. NoFiscal YearFindingInitiallyOccurredDescription of FindingCorrectiveActionTakenManagement Letter Continued:04-3(ML) 2004 The School Board is paying cell phone bills for some employees. Some ofthe invoices appear to be excessive and paid 100% by the School Boardwith no reimbursement for personal usage.Yes04-4(ML) 2004 The School Board has had and is continuing to encounter budget shortfallsin its General Fund. Prior to the final acceptance of a grant award, thebudget, grant, and financial departments should determine the cost impactto the general fund and report this to the Board for approval. The Boardshould develop a policy to require that all costs involved in administeringgrant awards be paid by the grant funding.No04-5(ML) 2004 For the past several years, the General Fund has been experiencingdeficiencies of revenues over expenditures which has caused a continuingdecline in the fund balance. The Board should consider reviewing theGeneral Fund expenditures to determine ways to reduce spending bypossibly eliminating programs and/or expenditures that may not have beencost beneficial. Additionally, class sizes should be reveiewed and theSchool District should consider setting these limits to operate within therevenues available.No


141Corrective Action PlanName ofContactPersonAnticipatedDate ofCompletionA new procedure was put in place to prevent abuse of cell phones in the system. Thenew procedure requires that most employees that are determined to need a cell phonefor their position must get their own personal cell phone. The School System thenprovides a flat reimbursement allowance that is determined by the need of the positionbeing held by the employee. The employee must furnish an invoice proving that theyspent at least the amount of the flat reimbursement for the cell phone they used forSchool System business. If the actual amount spent is less than the reimbursement rate,the employee will only receive reimbursement for the amount spent. Employees havingcell phones that remain in the name of the School System are required to highlightpersonal calls each month and submit a check for the personal percentage of the bill.MattDugas,Directorof Finance6/30/04The Grants Adminstration & Management Office is currently in the process of Dr. James 6/30/05developing standard practices and procedures for receiving, processing, and evaluating Easton,requests from schools and departments requiring grant money. This will include, but is Supt.not limited to, the review of the proposed grant application, including budget detail., bythe grants office, financial/accounting department, and appropriate instructionaldepartment prior to application submission. Additionally, the Grants Office ispresently developing a specific policy identifying what grants officially require boardapproval as there are serveral mini-grants which are controlled at the school campuslevelthat do not require board approval. Finally, specific policies addressing theadministration and management of awarded grants with respect to total grant selfsufficiencyare under development.The budget adopted for the 2004-2005 fiscal year has revenue equaling expenditures. Matt 6/30/05Part of the effort in reaching this balance was an increase of class size by one student to Dugas,save in excess of $2,600,000. Through a combination of additional revenues and Directordifficult spending cuts, the administration was able to present a balanced General Fund of Financebudget to the Board for adoption. The Board, in conjunction with the Chamber ofCommerce, has brought in a class size expert to help the Board focus its class reductioneffort to the most educationally effective areas. A Board retreat is planned to takeplace before the budgeting process for fiscal year 2005-2006 gets underway to set goalsand spending priorities.(continued)


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSummary Schedule of Current and Prior Year Audit Findingsand Corrective Action PlanFor the Year Ended June 30, 2004Ref. NoFiscal YearFindingInitiallyOccurredManagement Letter (Continued):Description of Finding04-6 (ML) 2004 During the fiscal year ended June 30, 2004, the Group Self -Insurance Fundexperienced an operating loss of $439,879. Consideration should be givento exploring plan adjustments in order for the fund to be self-sufficient.Additionally, procedures should be established in order to ascertain thatamounts due to the fund for reimbursements from the stop-loss insuranceare calculated correctly and properly remitted.CorrectiveActionTakenNo04-7(ML) 2002 Management should closely monitor operation of the School Food ServiceDepartment. During the fiscal year ended June 30, 2004, the fund incurreda deficiency of revenues over expenditures (before transfers) of $224,422.The Board should explore ways to increase revenues and/or reduceexpenditures in order for the fund to be self-sufficient and not require anytransfers from the General Fund.No142


Corrective Action PlanName ofContactPersonAnticipatedDate ofCompletionThe health insurance program continues to face increases in prescription drug costs, Ramona 6/30/05and this fiscal year rising health care and prescription costs caused the fund to Bernard,experience a $439,879 operating loss. In an effort to eliminate an operating loss next Director offiscal year, the plan increased premiums by 10% effective January 1, 2005. As Humanutilization of the plan increases along with the expected increase in health costs, Resourcesmanagement will continue to explore benefit design options as we face the challenge of &Riskweighing benefit changes against a premium increase or subsidy from the General Mgmt.Fund. Additionally, management in the insurance department, with assistance fromHealth-Plus Consulting, is in the process of reviewing options concerning the stop-lossprogram. One of the options being reviewed is to pull the stop-loss coverage fromBlue Cross and assign it to another vendor, since we have concerns that Blue Cross isnot diligently monitoring large claims. We are also exploring the option of placing theclaims administration of the plan with another TPA. Our goal is to find a partner whoshares fully in our commitment to control claims costs through disease managementand other measures. We believe there are other ways to mitigate claims other thanlimiting benefits.A large part of the operating deficit is due to a conscious decision to upgrade and Jules 6/30/05replace obsolete and broken kitchen equipment in our cafeterias. The decision to feed Gaudin,every child regardless as to whether they have paid for their meal or not has also Deputycontributed to the situation. To offset these issues we are pursuing increasing our extra Supt.andsales and our after school snack program as well as realizing receivables due through a CFOcollection agency. Of course, we will continue to have old equipment to replace in FY04-05 and we are also acquiring new computer equipment for the entire operation. Weare mindful of the deficit and our fund balance and we believe these actions willultimately strengthen and improve our operating and financial posture.143


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSummary Schedule of Current and Prior Year Audit Findingsand Corrective Action Plan (continued)For the Year Ended June 30, 2004Fiscal YearFindingInitiallyRef. No OccurredPRIOR YEAR (6/30/03)--Compliance:Description of FindingCorrectiveActionTaken03-1 (C) 2003 The School Board violated Article 7 Section 14 of the Louisianaconstitution by expending school activity funds on meals and giftsduring the fiscal year ended June 30, 2003.NoManagement Letter:03-2(ML) 2002 Management should closely monitor operations of the SchoolFood Service Department. During the fiscal year ended June 30,2003, the fund incurred a deficiency of revenues overexpenditures (before transfers) of $935,313 as compared to theprior year deficiency of $474,059. The Board should exploreways to increase revenues and/or reduce expenditures.No03-3(ML) 2000 The School Board's average class sizes were below the Boardmandated class size policy. The School Board should allowmanagement to approve additional discretionary variances abovethe Board approved ratios, in order to keep average class sizes asclose to the board mandated pupil/teacher ratio as possible. Theaverage class sizes are approximately half the size of themaximum class size regulated by the State of Louisiana. It is alsorecommended that the Board consider raising the class size closerto the State mandated maximum.Partial144


Corrective Action PlanName ofContactPersonAnticipatedDate ofCompletionIn the future, school officials will adhere to Article 7 Section 14of the Louisiana Constitution by disallowing the expenditures ofschool activity fund monies for the purchase of gifts and meals.During the current school year the administration plans to set up aprivate purpose trust fund to accept donations to provide moniesfor employee appreciation items and events. The plan is tomanage the fund centrally yet provide accounting for revenuesand expenses by individual sites. The use of such a fund has beenapproved by the Louisiana Legislative Auditor and does notviolate Article 7 Section 14 of the Louisiana Constitution.Matt Dugas,Director ofFinance6/30/04The administration will closely monitor School Food Service Matt Dugas,Department operations in an effort to reduce expenditures, Director ofspecifically, reviewing employee costs, and reduce future Financedeficiencies of revenues over expenditures in that fund.6/30/04The Board has given administration flexibility to allow certaindiscretionary variances in class sizes to avoid splitting classes intounits significantly smaller than the Board approved ratios. Inaddition, a new acting Human Resource director has been placedinto position. This new director has a greater emphasis oncompliance with set formula and disclosure to the Board ofindividuals hired and funding sources for each position. Undernew leadership, a committee approach with representation fromthe financial area will be utilized to ensure that the hiring processdoes not exceed budgetary allocations.Matt Dugas,Director ofFinance6/30/04145


LAFAYETTE PARISHSCHOOL SYSTEM


KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTSC. Burton Kolder, CPA* DCmi/rrvRussell F. Champagne, CPA* i\ GL11 V C. UVictor R. Slaven, CPA'j £ f | C ( A 7 | \' C «, M n t T fi OConradO. Chapman, CPA* " " ' ' ' '- ' J . ^'UllUlt WEBSITEP. Trt>y Courville CPA' WWW.KCSRCPAS.COMGerald A. Thibodeaux, Jr., CPA* Q^ Qr-p O Q DU W. 01,Robert S. Carter, CPAAllen J. LaBry, CPAHarry J. Clostio, CPAPenny Angelle Scruggins. CPAChristine L Cousin, CPAMary T. Thibodeaux, CPAKelly M. Doucet, CPAPA A cvA• A Professional Accounting CorporationMANAGEMENT LETTERMEMBER OF.AMERICAN INSTITUTE OFCERTIFIED PUBLIC ACCOUNTANTSSOCIETY OF LOUISIANACERTIFIED PUBLIC ACCOUNTANTSDr. James H. Easton, Superintendent,and Members of the Lafayette Parish School BoardLafayette, LouisianaDuring our audit of the basic financial statements of the Lafayette Parish School Board for the year endedJune 30, 2004, we noted certain areas in which improvements in the accounting system and financial practices ofthe School Board should be considered.(1) Management should closely monitor operations of the School Food Service Department.During the fiscal year ended June 30, 2004, the fund incurred a deficiency of revenues overexpenditures (before transfers) of $224,422. The Board should explore ways to increaserevenues and/or reduce expenditures in order for the fund to be self-sufficient and notrequire any transfers from the General Fund.(2) The School Board is paying cell phone bills for some employees. Some of the invoicesappear to be excessive and paid 100% by the School Board with no reimbursement forpersonal usage.(3) The School Board has had and is continuing to encounter budget shortfalls in its GeneralFund. Prior to the final acceptance of a grant award, the budget, grant, and financialdepartments should determine the cost impact to the General Fund and report this to theBoard for approval. The Board should develop a policy to require that all costs involved inadministering grant awards be paid by the grant funding.(4) For the past several years, the General Fund has been experiencing deficiencies of revenuesover expenditures which have caused a continuing decline in the fund balance. The Boardshould consider reviewing the General Fund expenditures to determine ways to reducespending by possibly eliminating programs and/or expenditures that may not have beencost beneficial. Additionally, class sizes should be reviewed and the School District shouldconsider setting these limits to operate within the revenues available.(5) During the fiscal year ended June 30, 2004, the Group Self-Insurance Fund experienced anoperating loss of 439,879. Consideration should be given to exploring plan adjustments inorder for the fund to be self-sufficient. Additionally, procedures should be established inorder to ascertain that amounts due to the fund for reimbursements from the stop-lossinsurance are calculated correctly and properly remitted.183 South Beadle 113 East Bridge Street 133 East Waddil 1234 David Drive, Suite 105 408 W. Conon Street 332 W. Sixth Avenue 200 South Main SlreelLafayette, LA 70508 Breaux Bridge, LA 70517 Marksville, LA 71351 Morgan City, LA 70380 Ville Plane, LA 70586 Oberlin, LA 70655 Abbeville, LA 70510Phone (337) 232-4141 Phone (337) 332-4020 Phone(ilS) 253-9252 Phone (985) 384-2020 Phone (337) 363-2792 Phone{337) 639-4737 Phone (337) 893-7944Fax (337) 232-8660 Fax (337) 332-2867 Fax (JIS) 253-8681 Fax (985) 3S4-W20 Fax (337) 363-3049 Fax (337) 639-4568 Fax (337) 893-7946


Dr. James H. Easton, Superintendent,and Members of the Lafayette Parish School BoardPage 2We would like to express our appreciation to you and your staff, particularly your office staff, for thecourtesies and assistance rendered to us in the performance of our audit. Should you have any questions or needassistance, please feel free to contact us.Kolder, Champagne, Slaven & Company, LLCCertified Public AccountantsLafayette, LouisianaNovember 12, 2004


LAFAYETTE PARISH SCHOOL BOARDSPECIAL AGREED-UPON PROCEDURESREPORT ON SCHOOL BOARDPERFORMANCE MEASURESFiscal Year Ended June 30, 2004


TABLE OF CONTENTSSchedulePageIndependent Accountants' Report onApplying Agreed-Upon Procedures 1 - 4General fund instructional and support expendituresand certain local revenue sources 1 5Education levels of public school staff 2 6Number and type of public schools 3 7Experience of public principalsand foil-time classroom teachers 4 8Public school staff data 5 9Class size characteristics 6 10Louisiana educational assessment program(LEAP) for the 21st century 7 11The graduation exit exam for the 21st century 8 12The IOWA tests 9 13


KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTSC. Burton Kolder, CPA"Russell F. Champagne, CPA"Victor R. Slaven, CPA"Conrad 0. Chapman, CPA" WEB g[TE!; CPA ", - WWW.KCSRCPAS.COMibodeaux, Jr., CPA"Roberts. Carte,, CPAAllen J. LaBry CPAHarry J.UOSIIOUPAPenny Angelle Scruggins, CPA• A Professional Accounting CorporationINDEPENDENT ACCOUNTANT'S REPORTON APPLYING AGREED-UPON PROCEDURESMEMBER OF.AMERICAN INSTITUTE OFCERTIFIED PUBLIC ACCOUNTANTSSOCIETY ° F LOUISIANACERTOEDPUSUC ACCOUNTANTSDr James Easton, Superintendentand Members of the Lafayette Parish School BoardLafayette, LouisianaWe have performed the procedures included in the Louisiana Governmental Audit Guide andenumerated below, which were agreed to by the management of Lafayette Parish School Board and theLegislative Auditor, State of Louisiana, solely to assist users in evaluating management's assertions about theperformance and statistical data accompanying the annual financial statements of Lafayette Parish SchoolBoard and to determine whether the specified schedules are free of obvious errors and omissions as providedby the Board of Elementary and Secondary Education (BESE) Bulletin. This agreed-upon proceduresengagement was performed in accordance with standards established by the American Institute of CertifiedPublic Accountants and applicable standards of Government Auditing Standards. The sufficiency of theseprocedures is solely the responsibility of the specified users of the report. Consequently, we make norepresentation regarding the sufficiency of the procedures described below either for the purpose for whichthis report has been requested or for any other purpose.are asOur procedures and findings relate to the accompanying schedules of supplemental information andfollows:I. General Fund Instructional and Support Expenditures and Certain Local RevenueSources (Schedule 1)1. We selected a random sample of 25 transactions and reviewed supportingdocumentation to determine if the sampled expenditures/revenues are classifiedcorrectly and are reported in the proper amounts for each of the followingamounts reported on the schedule:• Total General Fund Instructional Expenditures,• Total General Fund Equipment Expenditures,• Total Local Taxation Revenue,• Total Local Earnings on Investment in Real Property,• Total State Revenue in Lieu of Taxes,• Nonpublic Textbook Revenue, and• Nonpublic Transportation Revenue.There were no exceptions noted.183 South Beadle 113 Gut Bridge Street 133 East Waddil 1234 David Drive, Suite 105 408 W. Cotton Street 332 W Sixth Avenue 200 South Main StreetLafayette, LA 70508 Breaux Bridge, LA 70517 Marksville, LA 71351 Morgan City, LA 70380 Ville PLatte, LA 70586 Oberlin, LA 70655 Abbeville. LA 70510Phone (337) 232-4141 Phone (337) 332-4020 Phone (118) 253-9252 Phone (985) 384-2020 Phone (337) 363-2792 Phone (337) 639-4737 Phone (337) 893-7944Fax (337) 232-8660 Fax (337) 332-2867 Fax (318) 253-8681 Fax (985) 384-3020 Fax (337) 363-3049 Fax (337) 639-4568 Fax (337) 893-79461


II. Education Levels of Public School Staff (Schedule 2)2. We reconciled the total number of full-time classroom teachers per the schedule"Experience of Public Principals and Full-time Classroom Teachers" (Schedule4) to the combined total number of full-time classroom teachers per this scheduleand to school board supporting payroll records as of October 1st.There were no exceptions noted.3. We reconciled the combined total of principals and assistant principals per theschedule "Experience of Public Principals and Full-time Classroom Teachers"(Schedule 4) to the combined tota] of principals and assistant principals per thisschedule.There were no exceptions noted.4. We obtained a list of full-time teachers, principals, and assistant principals byclassification as of October 1st and as reported on the schedule. We traced arandom sample of 25 teachers to the individual's personnel file and determine ifthe individual's education level was properly classified on the schedule.There were no exceptions noted.III. Number and Type of Public Schools (Schedule 3)5. We obtained a list of schools by type as reported on the schedule. We comparedthe list to the schools and grade levels as reported on the Title 1 Grants to LocalEducational Agencies (CFDA 84.010) application and/or the National SchoolLunch Program (CFDA 10.555) application.There were no exceptions noted.IV. Experience of Public Principals and Full-time Classroom Teachers (Schedule 4)6. We obtained a list of full-time teachers, principals, and assistant principals byclassification as of October 1 and as reported on the schedule and traced the samesample used in procedure 4 to the individual's personnel file and determined ifthe individual's experience was properly classified on the schedule.There were no exceptions noted.V. Public Staff Data (Schedule 5>7. We obtained a list of all classroom teachers including their base salary, extracompensation, and ROTC or rehired retiree status as well as full-time equivalentas reported on the schedule and traced a random sample of 25 teachers to theindividual's personnel file and determined if the individual's salary, extracompensation, and full-time equivalents were properly included on the schedule.There were no exceptions noted.2


We recalculated the average salaries and full-time equivalents reported in theschedule.There were no exceptions noted.VI. Class Size Characteristics (Schedule 6)9. We obtained a list of classes by school, school type, and class size as reported onthe schedule and reconciled school type classifications to Schedule 3 data, asobtained in procedure 5. We then traced a random sample of 10 classes to theOctober 1st roll books for those classes and determined if the class was properlyclassified on the schedule.There were no exceptions noted.VII.Louisiana Educational Assessment Program (LEAP) for the 21st Century(Schedule 7)10. We obtained test scores as provided by the testing authority and reconciled scoresas reported by the testing authority to scores reported in the schedule byLafayette Parish School Board.There were no exceptions noted.The Graduation Exit Exam for the 21st Century (Schedule 8)11. We obtained test scores as provided by the testing authority and reconciled scoresas reported by the testing authority to scores reported in the schedule byLafayette Parish School Board.There were no exceptions noted.IX. The Iowa Tests (Schedule 9)12. We obtained test scores as provided by the testing authority and reconciled scoresas reported by the testing authority to scores reported in the schedule byLafayette Parish School Board.There were no exceptions noted.We were not engaged to, and did not, perform an examination, the objective of which would be theexpression of an opinion on management's assertions. Accordingly, we do not express such an opinion. Hadwe performed additional procedures, other matters might have come to our attention that would have beenreported to you.


This report is intended solely for the use of management of Lafayette Parish School Board, theLouisiana Department of Education, the Louisiana Legislature, and the Legislative Auditor, State ofLouisiana, and should not be used by those who have not agreed to the procedures and taken responsibility forthe sufficiency of the procedures for their purposes. Under Louisiana Revised Statute 24:513, this report isdistributed by the Legislative Auditor as a public document.Kolder, Champagne, Slaven & Company, LLCCertified Public AccountantsLafayette, LouisianaDecember 7,2004


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSCHEDULE 1General Fund Instructional and Support Expendituresand Certain Local Revenue SourcesFor the Year Ended June 30, 2004General Fund Instructional and Equipment ExpendituresGeneral fund instructional expenditures:Teacher and student interaction activities -Classroom teacher salariesOther instructional staff activitiesEmployee benefitsPurchased professional and technical servicesInstructional materials and suppliesInstructional equipmentTotal teacher and student interaction activitiesOther instructional activitiesPupil support activitiesLess: Equipment for pupil support activitiesNet pupil support activitiesInstructional staff servicesLess: Equipment for instructional staff servicesNet instructional staff servicesTotal general fund instructional expendituresTotal general fund equipment expendituresCertain Local Revenue SourcesLocal taxation revenue:Constitutional ad valorem taxesRenewable ad valorem taxDebt service ad valorem taxUp to 1% of collections by the Sheriff on taxesother than school taxesSales and use taxesTotal local taxation revenueLocal earnings on investment in real property:Earnings from 16th section propertyEarnings from other real propertyTotal local earnings on investment in real propertyState revenue in lieu of taxes:Revenue sharing - constitutional taxRevenue sharing - other taxesRevenue sharing - excess portionOther revenue in lieu of taxesTotal state revenue in lieu of taxesNonpublic textbook revenueNonpublic transportation revenue68,859,1229,460,33023,107,999252,6543,225,237504,1977,047,984(9,982)6,047,601(299,135)$ 105,409,539218,9807,038,0025,748,466S 118,414,987$ 1,147,0503,676,92123,199,518703,21161,254,364$ 88,834,014$ 362,998125.871$ 488,869$ 1,805,737$ 1,805,737$ 177,577$ 617,411


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSCHEDULE 2Education Levels of Public School StaffAs of October 1,2003CategoryLess than a bachelor's degreeBachelor's degreeMaster's degreeMaster's degree + 30Specialist in educationPh. D. or Ed. D.TotalFull-time Classroom TeachersCertificated UncertificatedNumber | Percent Number] Percent1,51655320152122,33464.96%23.69%8.61%2.23%0.51%100.00%3333100.00%100.00%Principals & Assistant PrincipalsCertificated UncertificatedNumber | Percent Number Percent39312129341.94%33.33%22.58%2.15%100.00%-


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSCHEDULE 3Number and Type of Public SchoolsFor the Year Ended June 30, 2004ElementaryMiddle/Junior highSecondaryCombinationTotalTypeNumber24116344Note: Schools opened or closed during the fiscal year are included in this schedule.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSCHEDULE 4Experience of Public Principals and Full-time Classroom TeachersAs of October 1,2003Assistant principalsPrincipalsClassroom teachersTotal0-1 Yr.12-1962082-3 Yrs.9-1601694-10 Yrs.221752456311-14 Yrs.-1429530915-19 Yrs.2633734520-24 Yrs.1827928825+ Yrs.11576578Total47462,3672,460


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSCHEDULE 5Public School Staff DataFor the Year Ended June 30, 2004Average classroom teachers' salaryincluding extra compensationAll ClassroomTeachers40,267.00Classroom TeachersExcluding ROTCand Rehired Retirees40,267.00Average classroom teachers' salaryexcluding extra compensation40,102.0040,072.00Number of teacher full-time equivalents (FTEs) used incomputation of average salaries2,0962,090Note: Figures reported include all sources of funding (i.e., federal, state, and local) but exclude employeebenefits. Generally, retired teachers rehired to teach receive less compensation than non-retired teachers andROTC teachers receive more compensation because of a federal supplement. Therefore, these teachers areexcluded from the computation in the last column. This schedule excludes day-to-day substitutes andtemporary employees.


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSCHEDULE 6Class Size CharacteristicsAs of October 1,2003School TypeElementaryElementary activity classesMiddle/Junior highMiddle/Junior high activity classesHighHigh activity classesCombinationCombination activity classesPercent78.8%81.6%60.3%47.7%43.8%48.7%99.3%100.0%1-20Number66442711342619423341361Percent20.6%16.8%35.4%21.0%39.9%31.7%0.7%0.0%Class Size Range21 -26 27-33Number Percent173 0.6%88 0.8%665 4.3%115 19.2%857 16.3%217 13.9%1 0.0%0 0.0%Number54811053509500Percent0.0%0.8%0.0%12.1%0.0%5.7%0.0%0.0%34+Number0406603900Note: The Board of Elementary and Secondary Education has set specific limits on the maximum size of classesat various grade levels. The maximum enrollment in grades K-3 is 26 students and maximum enrollment ingrades 4-12 is 33 students. These limits do not apply to activity classes such as physical education, chorus, band,and other classes without maximum enrollment standards. Therefore, these classes are included only as separateline items.10


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSCHEDULE 7Louisiana Educational Assessment Program (LEAP) for the 21st CenturyFor the Year Ended June 30, 2004District AchievementLevel ResultsStudentsGrade 4AdvancedMasteryBasicApproaching basicUnsatisfactoryTotalEnglish Language Arts200420032002Number Percent Number Percent Number Percent675008985183412,324321392215403621,0085392632,2122164624121194489206492532,3895193827112004Number! Percent67 3412 17909 39454 20482 212,324Mathematics2003Number Percent1004029924172992,2105184519132002Number Percent773409465594662,388314402320District AchievementLevel ResultsStudentsGrade 8AdvancedMasteryBasicApproaching basicUnsatisfactoryTotal2004Number j Percent49 2565 23853 36544 22410 172,421Science2003Number Percent334618946183042,3101203927132002Number | Percent71 3492 22827 38523 24288 132,2012004Number Percent493411,0636033592,415214442515Social Studies2003Number Percent73101,1005473402,3040134824152002Number Percent353141,0334623522,19621447211611


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSCHEDULE 8The Graduation Exit Exam for the 21st CenturyFor the Year Ended June 30, 2004District AchievementLevel ResultsStudentsGrade 10AdvancedMasteryBasicApproaching basicUnsatisfactoryTotalEnglish Language Arts200420032002Number Percent Number Percent Number Percent434728183572311,921224431912132579254364112,042113452120263358734423231,9991174422162004Number Percent2703977392482761,9301421381314Mathematics20032002Number j Percent Number Percent209 10410 19730 34310 15473 222,1322223556722975462,0921117321426District AchievementLevel ResultsStudentsGrade 1 1AdvancedMasteryBasicApproaching basicUnsatisfactoryTotal2004Number Percent703636723512311,687421402114Science2003Number Percent343037793682571,7412174521152002Number Percent392825953483491,6132173722222004Number Percent152419163461671,685114542110Social Studies2003Number Percent222648523582441,7401154921142002Number Percent131597583023821,61411046192412


LAFAYETTE PARISH SCHOOL BOARDLafayette, LouisianaSCHEDULE 9The IOWA TestsFor the Year Ended June 30, 20042004Composite20032002Test of basic skills (ITBS)Grade 3Grade 5Grade 6Grade 7626150545959465656545659Tests of educational development (ITED)Grade 9575451Scores are reported by National Percentile Rank. A student's National Percentile Rank shows the student'srelative position or rank as compared to a large, representative sample of students in the same grade from theentire nation. A student with a score of 72 indicates that the student scored the same or better than 72percent of the students in the norm group.13

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