CITY OF HARAHAN, LOUISIANA

FINANCIAL STATEMENTS

DECEMBER 31, 2024

 CITY OF HARAHAN, LOUISIANA
TABLE OF CONTENTS
DECEMBER 31, 2024

Statement/
Schedule Page
I. FINANCIAL SECTION
Independent Auditors’ Report 1-3

Government Financial Statements:

Required Supplementary Information (Part 1):
Management’s Discussion and Analysis 4 - 15
Basic Financial Statements:
Government –Wide Financial Statements
Statement of Net Position A 16
Statement of Activities B 17
Fund Financial Statements:
Governmental Funds
Balance Sheet C 18
Reconciliation of the Governmental Funds’ Balance Sheet
to the Statement of Net Position D 19
Statement of Revenues, Expenditures, and Changes
In Fund Balances E 20
Reconciliation of the Governmental Funds’ Statement of Revenues,
Expenditures, and Changes in Fund Balances to the
Statement of Activities F 21

Proprietary Fund:
Statement of Net Position G 22
Statement of Revenues, Expenses, and Changes in Net Position H 23
Statement of Cash Flows I 24
Notes to Financial Statements 25 - 56
II. SUPPLEMENTAL INFORMATION SCHEDULES

Required Supplementary Information (Part 2):

Budgetary Comparison Schedules
General Fund 1 57
Sales Tax Fund 2 58
Fire Sales Tax Fund 3 59
ARPA Fund 4 60
FEMA Fund 5 61
Schedule of Proportionate Share of the Net Pension Liability 6 62
Schedule of Employer Contributions to Each Retirement System 7 63
Supplementary Information:
Schedule of Compensation Paid to City Council Members 8 64
Schedule of Compensation, Benefits, and Other Payments to 9 65
Agency Head
Justice System Funding Schedule – Collecting/Disbursing Entity 10 66
 EisnerAmper LLP
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INDEPENDENT AUDITORS' REPORT

The Honorable Mayor and City Council

City of Harahan, Louisiana

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type
activities, and each major fund of the City of Harahan, Louisiana (the City) as of and for the year ended
December 31, 2024, and the related notes to the financial statements, which collectively comprise the City's
basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, and each major
fund of the City as of December 31, 2024, and the respective changes in financial position, and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Change in Accounting Principle

As discussed in Note 1 to the financial statements, the City adopted new accounting guidance in 2024,
Governmental Accounting Standards Board (GASB) No. 100, Accounting Changes and Error
Corrections - an amendment of GASB statement 62, and No. 101, Compensated Absences. Our opinions
are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.

“EisnerAmper” is the brand name under which EisnerAmper LLP and Eisner Advisory Group LLC and its subsidiary entities provide professional services.
EisnerAmper LLP and Eisner Advisory Group LLC are independently owned firms that practice in an alternative practice structure in accordance with the AICPA
Code of Professional Conduct and applicable law, regulations and professional standards. EisnerAmper LLP is a licensed CPA firm that provides attest services,
and Eisner Advisory Group LLC and its subsidiary entities provide tax and business consulting services. Eisner Advisory Group LLC and its subsidiary entities are
not licensed CPA firms.
Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes
our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that, individually
or in the aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.

 Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control. Accordingly, no such opinion is expressed.

 Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.

 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City's ability to continue as a going concern for a reasonable
period of time.

We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, the schedule of proportionate share of the net pension liability, the schedule of
employer contributions to each retirement system, and budgetary comparison information as listed in the
table of contents be presented to supplement the basic financial statements. Such information is the
responsibility of management and, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context. We
have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for consistency
with management's responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.

EisnerAmper LLP
www.eisneramper.com
Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The Schedule of Compensation Paid to City Council
Members, the Schedule of Compensation, Benefits and Other Payments to the Agency Head, and the
Justice System Funding Schedule – Collecting / Disbursing Entity are presented for purposes of additional
analysis and are not a required part of the basic financial statements. Such information is the responsibility
of management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the Schedule of Compensation Paid to City Council Members, the Schedule of
Compensation, Benefits and Other Payments to the Agency Head, and the Justice System Fundings
Schedule – Collecting / Disbursing Entity are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2025,
on our consideration of the City's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City's internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering City's internal control over
financial reporting and compliance.

EISNERAMPER LLP
Metairie, Louisiana
June 30, 2025

EisnerAmper LLP
www.eisneramper.com
REQUIRED SUPPLEMENTARY INFORMATION (PART 1)
 CITY OF HARAHAN, LOUISIANA

MANAGEMENT’S DISCUSSION AND ANALYSIS

DECEMBER 31, 2024

As financial management of the City government, we offer this narrative overview and analysis of the financial
activities of the City for the year ended December 31, 2024. We encourage readers to consider the information
presented here with the basic financial statements and accompanying notes to the financial statements which
follow this narrative.

FINANCIAL HIGHLIGHTS

• Assets and deferred outflows of the City’s government exceeded its liabilities and deferred inflows at
the close of the most recent fiscal year by $15,799,728 (net position).
• As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund
balance of $7,916,588, an increase of $839,720 from the December 31, 2023 balance of $7,076,868.
• At December 31, 2024, fund balance for the General fund is $2,947,332, which includes nonspendable
fund balance of $51,481, restricted fund balance of $122,611, and an unassigned surplus fund balance
of $2,773,240. This represents a $268,599 increase from the December 31, 2023 balance of $2,678,733.
The unassigned surplus fund balance in the general fund of $2,773,240 represents an increase in
unassigned fund balance of $280,836 from the December 31, 2023 balance of $2,492,404.
• Current liabilities – unearned revenue in the ARPA fund decreased from $2,598,260 to $0, during 2024
due to revenue recognized during the fiscal year.
• Deferred inflows of resources – unavailable revenue in the general fund increased from $274,624 to
$291,472, an increase of $16,848 at December 31, 2024.
• Deferred inflows of resources – unavailable revenue in the proprietary fund (sewer fund) increased from
$400,105 to $406,889, an increase of $6,784 at December 31, 2024.
• The City adopted the provisions of GASB Statement 100, Accounting Changes and Error and
Corrections – an amendment of GASB Statement 62. Under this Statement, the accounting and financial
reporting requirements for accounting changes and error corrections will provide more understandable,
reliable, relevant, consistent, and comparable information for making decisions or assessing
accountability. The City adopted GASB Statement 101, Compensated absences. The unified recognition
and measurement model in this standard results in a liability for compensated absences that more
appropriately reflects when a government incurs an obligation. In addition, the model can be applied
consistently to any type of compensated absences and will eliminate potential comparability issues
between governments that offer different types of leave.
• With the implementation of GASB 101, Compensated Absences, the calculation and recognition of
accrued leave includes an assessment of the leave that is more likely than not to be paid in the future for
leave that has been earned as of the balance sheet date in accordance with City’s policy. This change in
accounting principle required the inclusion of an estimate of sick leave earned as of the balance sheet
date that is more likely than not to be paid out. In accordance with GASB Statement 100, Accounting
Changes and Error Corrections – an amendment of GASB Statement 62, this change in accounting
principle requires the beginning balance of net position to be restated to reflect the change in accrued
leave as of the end of the prior year. As a result of the implementation of GASB Statement 101,
Compensated absences, a restatement of the beginning net position as of December 31, 2023, on the
governmental wide financials and proprietary fund amounts to $719,959 and $10,571, respectively.

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 CITY OF HARAHAN, LOUISIANA

MANAGEMENT’S DISCUSSION AND ANALYSIS

DECEMBER 31, 2024

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The
City’s basic financial statements are comprised of three components: 1) government-wide financial statements,
(2) fund financial statements, and (3) notes to the basic financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the City’s
finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City’s assets, deferred outflows of resources,
liabilities, and deferred inflows of resources, with the difference between them reported as net position. Over
time, increases or decreases in net position may serve as a useful indicator of whether the financial position of
the City is improving or deteriorating.

The statement of activities presents information showing how the City’s net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and
earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally supported
by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to
recover all or a significant portion of their costs through user fees and charges (business-type activities). The
governmental activities of the City include general government, public safety (police and fire), recreation, public
works, sanitation, and interest on debt. The City has one business-type activities, the Sewer fund. The
government-wide financial statements (Statement A and Statement B) can be found on pages 16-17 of this report.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The City, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be
divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds are used to account for essentially the same functions reported as governmental activities
in the government-wide financial statements. However, unlike the government-wide financial statements,
governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well
as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating a government’s near-term financing requirements.

5
 CITY OF HARAHAN, LOUISIANA

MANAGEMENT’S DISCUSSION AND ANALYSIS

DECEMBER 31, 2024

Fund Financial Statements (continued)

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund
balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances
provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains individual governmental funds. Information is presented separately in the governmental
fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund
balances for the General Fund, the Sales Tax Fund, Fire Sales Tax Fund, ARPA Fund, FEMA Fund, and the
Capital Projects Fund, which are considered to be major funds. The City adopts an annual appropriated budget
for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate
compliance with this budget. The basic governmental fund financial statements (Statement C and Statement E)
can be found on pages 18 and 20 of this report.

Enterprise funds are used to report the same functions presented as business-type activities in the government-
wide financial statements. The City maintains one type of proprietary fund. The City uses the enterprise fund
to account for its operations and maintenance of the sewer and water facilities. Proprietary funds provide the
same type of information as the government-wide financial statements, only in more detail.

The basic proprietary fund financial statements (Statement G, Statement H, and Statement I) can be found on
pages 22-24 of this report.

Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary
funds are not reflected in the government-wide financial statements because the resources of those funds are not
available to support the City’s own programs. The accounting used for fiduciary funds is much like that used
for proprietary funds. At December 31, 2024, the City has no fiduciary funds.

Notes to Basic Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements. The notes to basic financial statements can be found on pages
25-56 of this report.

Other Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning general fund and sales tax budgetary comparisons, the net pension
liability, and contributions to defined benefit pension plans. Required supplementary information can be found
at Schedules 1 through 7 on pages 57-63. Additional supplementary information can be found at Schedules 8
through 10 on pages 64-66.

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 CITY OF HARAHAN, LOUISIANA

MANAGEMENT’S DISCUSSION AND ANALYSIS

DECEMBER 31, 2024

Government-Wide Financial Analysis

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In
the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of
resources by $15,799,728 at December 31, 2024. Certain 2023 balances are restated as a result of the
implementation of GASB Statement 101, Compensated Absences, during 2024.

The following table reflects the condensed Statements of Net Position as of December 31, 2024 and 2023:

City of Harahan's Statement of Net Position

December 31
Governmental Activities Business-type Activities Totals
2023 2023
2024 (as restated) 2024 (as restated) 2024 2023
Assets:
Current and other assets $ 10,367,196 $ 9,922,756 $ 800,893 $ 742,757 $ 11,168,089 $ 10,665,513
Restricted assets 540,762 2,220,873 469,126 445,493 1,009,888 2,666,366
Capital assets, net 7,976,265 4,537,813 9,028,396 8,635,421 17,004,661 13,173,234
Other 714,506 724,379 (714,506) (724,379) - -
Total assets 19,598,729 17,405,821 9,583,909 9,099,292 29,182,638 26,505,113

Deferred outflows of resources:

Deferred amounts - net
pension liability 1,267,816 2,079,967 - - 1,267,816 2,079,967
Total deferred outflows 1,267,816 2,079,967 - - 1,267,816 2,079,967

Liabilities:
Current liabilities 1,448,339 3,543,640 202,543 593,489 1,650,882 4,137,129
Long-term liabilities 7,226,021 8,502,697 2,613,617 2,834,021 9,839,638 11,336,718
Total liabilities 8,674,360 12,046,337 2,816,160 3,427,510 11,490,520 15,473,847

Deferred inflows of resources:

Unearned revenue 2,261,945 2,252,783 406,889 400,105 2,668,834 2,652,888
Deferred amounts - net
pension liability 491,372 266,447 - - 491,372 266,447
Total deferred inflows 2,753,317 2,519,230 406,889 400,105 3,160,206 2,919,335

Net Position:
Net investment in capital
assets 7,976,265 3,408,758 6,414,779 5,811,971 14,391,044 9,220,729
Restricted 2,407,346 3,473,884 469,126 445,493 2,876,472 3,919,377
Unrestricted (944,743) (1,962,421) (523,045) (985,787) (1,467,788) (2,948,208)
Net position (deficit) $ 9,438,868 $ 4,920,221 $ 6,360,860 $ 5,271,677 $ 15,799,728 $ 10,191,898

7
 CITY OF HARAHAN, LOUISIANA

MANAGEMENT’S DISCUSSION AND ANALYSIS

DECEMBER 31, 2024

Government-Wide Financial Analysis (continued)

By far, the largest portion of the City’s net position is its $14,391,044 net investment in capital assets (e.g. land,
buildings, streets, machinery, vehicles, sewer system, and equipment); less any related debt used to acquire those
assets that is still outstanding and adding back any unspent bond proceeds. The City uses these capital assets to
provide services to citizens; consequently, these assets are not available for future spending. Although the City’s
investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate
these liabilities.

The City’s net position $2,876,472 represents resources that are subject to external restrictions on how they may
be used for debt service and for repairs and maintenance to the sewer fund. The remaining unrestricted net
position is a deficit of ($1,467,788).

8
 CITY OF HARAHAN, LOUISIANA

MANAGEMENT’S DISCUSSION AND ANALYSIS

DECEMBER 31, 2024

Government-Wide Financial Analysis (continued)

The following table provides a summary of the changes in net position for the year ended December 31, 2024
and 2023:

City of Harahan's Changes in Net Position

December 31
Governmental Activities Business-type Activities Totals
2023 2023
2024 (as restated) 2024 (as restated) 2024 2023
Revenues:
Program revenue:
Charges for services $ 2,213,543 $ 1,719,615 $ 1,163,949 $ 1,004,429 $ 3,377,492 $ 2,724,044

Operating grants and contributions 1,039,608 1,147,396 - - 1,039,608 1,147,396

Capital grants and contributions 3,881,178 650,388 - 577,000 3,881,178 1,227,388
General revenue:
Ad valorem (property) taxes 1,958,449 1,904,147 405,627 393,794 2,364,076 2,297,941
Sales and use taxes 5,145,792 5,099,249 - - 5,145,792 5,099,249
Fines, forfeitures, and other 256,677 243,939 - - 256,677 243,939
Gaming taxes 436,147 421,626 - - 436,147 421,626
Interest income 433,326 537,113 37,170 32,021 470,496 569,134
Loss on disposal of assets (1,300) - - - (1,300) -
Miscellaneous 323,900 220,457 (12,166) (13,165) 311,734 207,292
Insurance proceeds 156,697 715,335 - - 156,697 715,335
Transfers (884,246) (1,267,168) 884,246 1,267,168 - -
Total revenues 14,959,771 11,392,097 2,478,826 3,261,247 17,438,597 14,653,344

Expenses:
General government - other 2,825,571 2,703,646 - - 2,825,571 2,703,646
Public safety - police 2,984,635 2,956,122 - - 2,984,635 2,956,122
Public safety - fire 2,217,476 2,149,788 - - 2,217,476 2,149,788
Public works 662,503 679,190 - - 662,503 679,190
Sewer - - 1,389,643 1,337,348 1,389,643 1,337,348
Sanitation 1,094,252 789,891 - - 1,094,252 789,891
Recreation 594,162 341,741 - - 594,162 341,741
Interest and fiscal charges 62,525 64,281 - - 62,525 64,281
Total expenses 10,441,124 9,684,659 1,389,643 1,337,348 11,830,767 11,022,007

Increase (decrease) in net position 4,518,647 1,707,438 1,089,183 1,923,899 5,607,830 3,631,337

Net position, January 1 4,920,221 3,875,461 5,271,677 3,347,778 10,191,898 7,223,239

Prior Period Adjustment Note 17 - (662,678) - - - (662,678)
Net position, January 1 (restated) 4,920,221 3,212,783 5,271,677 3,347,778 10,191,898 6,560,561

Net position, December 31 $ 9,438,868 $ 4,920,221 $ 6,360,860 $ 5,271,677 $ 15,799,728 $ 10,191,898

9
 CITY OF HARAHAN, LOUISIANA

MANAGEMENT’S DISCUSSION AND ANALYSIS

DECEMBER 31, 2024

Government-Wide Financial Analysis (continued)

Governmental activities increased the City’s net position by $4,518,647 during the year ended December 31,
2024. Key elements of the change in net position are as follows:

• Charges for services increased by $493,928 due to an increase in grant funding from the Capital Project
fund.
• Capital grants and contributions increased $3,230,790 due to the use of ARPA funding and additional
funding form the State of Louisiana.
• Sales and use tax increased by $46,543 primarily due to the more volume of taxes paid.
• Insurance proceeds decreased by $558,638 due to insurance proceeds received related to Hurricane Ida
in the prior year.
• General government – other expenses increased by $121,925 due to the timing of disaster recovery and
emergency response FEMA related expenses incurred as a result of Hurricane Ida and improvements to
the properties damaged from Hurricane Ida.
• Police related expenses increased by $28,513 primarily as a result of the pension expense and
adjustments to the net pension liability as of December 31, 2024.
• Fire related expenses increased by $67,688 primarily as a result of the pension expense and adjustments
to the net pension liability as of December 31, 2024.
• Sanitation expenses increased by $304,361 due to cost from the City’s new service provider.
• Recreation expenses increased by $252,421 primarily as a result of repairs to playground facilities.

Business-type activities increased the City’s net position by $1,089,183 during the year ended December 31,
2024. Key elements of the change in net position are as follows:
• Capital grants decreased by $577,000 due to one-time grant funding from the State in the prior year.
• Transfers-in decreased by $382,922 due to less transfers from the ARPA Fund and Capital Projects
Fund. The increase in net position relates to a transfer-in in the amount of $585,700 from the Capital
Project Fund for capital assets.

Financial Analysis of the Government’s Funds

As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.

Governmental Funds

The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In
particular unassigned fund balance may serve as a useful measure of a government’s net resources available for
spending at the end of the fiscal year.

10
 CITY OF HARAHAN, LOUISIANA

MANAGEMENT’S DISCUSSION AND ANALYSIS

DECEMBER 31, 2024

Governmental Funds (continued)

At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$7,916,588, an increase of $839,720 in comparison with the prior year. This total consists of general fund,
$2,947,332; sales tax fund, $0; fire sales tax fund, $2,407,346; ARPA fund, $0; FEMA fund, ($925,917); and
the capital projects fund, $3,487,827. These fund balances are intended, and in some cases restricted, committed,
or assigned, for specific purposes.

The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the unassigned
fund balance of the general fund was a surplus of $2,773,240. As a measure of the general fund’s liquidity, it
may be useful to compare unassigned fund balance to total fund budget. The unassigned fund balance represents
30.46% of the general fund’s final budgeted expenditures of $9,104,346. During the year ended December 31,
2024, the general fund balance increased by $268,599 due primarily to total revenues/transfers-in in excess of
total expenditures/transfer-out.

The sales tax fund reported fund balance of $0 at December 31, 2024. Sales tax receipts in the sales tax fund are
transferred to the general fund for operations of the City. Sales tax revenue of $3,155,020 increased $138,511 in
comparison to the prior year.

The fire sales tax fund used to account for the sales tax approved by vote in March 2022. The fire sales tax fund
reported fund balance of $2,407,346 at December 31, 2024, due to sales tax receipts in excess of the collection
fees and transfers to the general fund and the capital project fund.

The ARPA fund reported fund balance of $0 at December 31, 2024. During 2024 the City recognized federal
revenue of $2,598,260 and expenditures/transfers out of $2,734,068 for expenses incurred.

The fund balance of the FEMA fund increased by $1,048,092. The increase was primarily due to obligated
FEMA funds for eligible expenses in 2024 for projects at the playground, gymnasium, and other City’s facilities
impacted by Hurricane Ida.

The fund balance of the capital projects fund decreased from $4,980,228 to $3,487,827 during the year ended
December 31, 2024. The decrease of $1,492,401 during 2024 was due to significant capital expenditures
throughout during the fiscal year.

Proprietary funds

The City’s proprietary fund provides the same type of information found in the government-wide financial
statements, but in more detail. The unrestricted net position of the City’s proprietary fund amounted to a deficit
of ($523,045), which is a decrease in the deficit of $462,742 as compared to the prior year unrestricted net
position (deficit) of ($985,787).

11
 CITY OF HARAHAN, LOUISIANA

MANAGEMENT’S DISCUSSION AND ANALYSIS

DECEMBER 31, 2024

General Fund Budgetary Highlights

The City approved the General fund budget during the year ended December 31, 2024. For the current fiscal
year, the total revenue was more than budgeted revenues by $78,192 and the total expenditures were more than
budgeted expenditures by $297,502.

Material differences between actual results and budgeted amounts are as follows:

• Intergovernmental revenues of $237,355 was more than budgeted intergovernmental revenues in the
amount of $88,663
• Charge for services of $1,113,069 was less than budgeted charge for services in the amount of $74,287.
• Public safety – police expenditures of $2,832,972 were greater than budgeted public safety – police
expenditures in the amount of $271,623.
• Public safety – fire expenditures of $1,856,728 were less than budgeted public safety – fire expenditures
in the amount of $119,339.

12
 CITY OF HARAHAN, LOUISIANA

MANAGEMENT’S DISCUSSION AND ANALYSIS

DECEMBER 31, 2024

Capital Asset and Debt Administration

Capital Assets

The City’s investment in capital assets for its governmental and business type activities as of December 31, 2024
amounts to $17,004,661 (net of accumulated depreciation). This investment in capital assets includes land,
buildings, land improvements, transportation equipment, furniture and equipment, sewer system, and computer
equipment.

City of Harahan, Louisiana

Capital Assets (Net of Depreciation)
December 31, 2024

Business-
Governmental type
Activities Activities Total

Land, land improvement, and buildings $ 6,164,483 $ 13,727 $ 6,178,210

Infrastructure 1,670,998 - 1,670,998
Sewer treatment plant and system - 13,842,879 13,842,879
Transportation equipment 3,284,689 - 3,284,689
Other equipment 2,008,201 - 2,008,201
Furniture and fixtures 80,558 - 80,558
Computer equipment 427,606 - 427,606
Construction in progress 27,658 169,846 197,504
13,664,193 14,026,452 27,690,645

Less: Accumulated Depreciation (5,687,928) (4,998,056) (10,685,984)

$ 7,976,265 $ 9,028,396 $ 17,004,661

Major capital asset events during the current fiscal year included the following:
 Sewer treatment plant improvements in the amount of $984,937 were completed.
 Land improvements and buildings in the amount of $3,709,174 were completed.
 Disposal of transportation equipment in the amount of $401,771 resulted in a loss of $1,300.

Additional information on the City’s capital assets can be found in Note 6 of this report.

13
 CITY OF HARAHAN, LOUISIANA

MANAGEMENT’S DISCUSSION AND ANALYSIS

DECEMBER 31, 2024

Long-Term Debt

At the end of the current fiscal year, the City had total bonded debt outstanding of $1,750,000. The debt
represents bonds secured by specified revenue sources such as the general sales tax. The work for the $4 million
LDEQ loan for improvements to the sewer and water system was completed during the 2022 year. The balance
on the DEQ loan is $2,591,991 as of December 31, 2024. Additional information on long-term obligations can
be found in Note 7 of this report.

Economic Factors and Next Year’s Budget and Rates

The City generally receives approximately 40% of its revenues from sales tax levied by the City and 15% from
ad valorem taxes; therefore, economic indicators are very important in forming the budget estimates for the
City's funds. Revenue assumptions are reviewed by the City Council and the Mayor. The uncertainties of the
national, state, and local economy require prudent budgeting by the City's elected officials. The City continues
to apply for federal and state grants related to infrastructure, improvements, and business development in order
to improve the quality of life for the people of the City.

Located in Harahan is the largest piece of undeveloped property on the east bank of Jefferson Parish. The
approximately 88-acre site is the former home of the Colonial Golf and Country Club. The site is zoned for
approximately 15 acres of commercial development and 73 acres of residential development. In 2018, the City
re-subdivided the approximately 15-acre commercial parcel into 6 commercial parcels. In 2018, the City (under
the previous administration) issued a building permit which allowed for the construction of The Blake, an
estimated $28 million approximate 115 thousand square foot assisted living center located on a portion of the
site of the commercial parcel. The Blake opened in December 2020. In 2021, the City approved an eight (8) lot
residential parcel. Said lots are currently on the market or under development. On June 29, 2021, the Council
approved an Amended Development Agreement (ADA) executed by the Mayor and Developers. The City
should realize an increased property tax impact for the 2024 tax year. This ADA clears the way for further
development of the 88-acre property at a more expedited rate. Development of the entire 88-acre site of expected
high end housing and commercial properties is expected to have a positive impact on City revenues as well as
create a significant number of jobs.

Effective July 1, 2024, the Council has approved an increase in the sewer user charges for residential and
commercial addresses within the City which will increase charges for services revenue in the sewer fund. The
2025 budget includes the full year impact of the increase in sewer user charges. The fire truck for the fire
department is under construction as of December 31, 2024. The City received the fire truck in 2025 and has
budgeted to make the second lease payment related to the financing of the truck in 2025.

In February 2024, the City entered into an agreement with the State of Louisiana Office of Facility Planning and
Control for total funding of $4,705,000 with a 25% match from the City of $1,568,333 for a total project cost of
$6,273,333. The project is funding the related planning and construction of emergency improvements to the
sewer collection system and an overhaul to the treatment system. In May 2024, the City entered into a contract
with a company for an amount not to exceed the standard rate of $800,460 to provide engineering services
throughout the project including design, bidding, construction, surveying, and resident inspection. The City
continues to work with the State of Louisiana Office of Facility Planning and Control to move this project
forward.
14
 CITY OF HARAHAN, LOUISIANA

MANAGEMENT’S DISCUSSION AND ANALYSIS

DECEMBER 31, 2024

Economic Factors and Next Year’s Budget and Rates (continued)

The City continues to work with federal and state agencies and FEMA for reimbursements for expenses incurred
related to Hurricane Ida debris removal, emergency response, and damages to City facilities.

Requests for Information

This financial report is designed to provide a general overview of the finances of the City of Harahan, Louisiana,
for all those with an interest in the government’s finances. Questions concerning any of the information provided
in this report or requests for additional information should be addressed to the Mayor at 6437 Jefferson Highway,
Harahan, Louisiana 70123.

15
 BASIC FINANCIAL STATEMENTS
GOVERNMENT – WIDE FINANCIAL STATEMENTS
 Statement A
CITY OF HARAHAN, LOUISIANA
STATEMENT OF NET POSITION
DECEMBER 31, 2024

Governmental Business Type

Activities Activities Total
Assets:
Cash $ 6,275,183 $ 160,925 $ 6,436,108
Receivables 4,040,532 639,968 4,680,500
Prepaid expenses 51,481 - 51,481
Restricted cash 540,762 469,126 1,009,888
Capital assets
Land and right of way 129,680 13,727 143,407
Construction in progress 27,658 169,846 197,504
Depreciable capital assets, net 7,818,927 8,844,823 16,663,750
Internal balances 714,506 (714,506) -

Total assets $ 19,598,729 $ 9,583,909 $ 29,182,638

Deferred outflows of resources:

Deferred amounts related to net pension liability $ 1,267,816 $ - $ 1,267,816

Total deferred outflows of resources $ 1,267,816 $ - $ 1,267,816

Liabilities:
Accounts, salaries, and other payables $ 1,131,007 $ 202,543 $ 1,333,550
Interest payable 4,408 - 4,408
Unearned revenue 312,924 - 312,924
Long term liabilities
Due within one year 250,000 224,991 474,991
Due after one year 2,836,300 2,388,626 5,224,926
Net pension liability 4,139,721 - 4,139,721

Total liabilities $ 8,674,360 $ 2,816,160 $ 11,490,520

Deferred inflows of resources:

Unavailable revenue $ 2,261,945 $ 406,889 $ 2,668,834
Deferred amounts related to net pension liability 491,372 - 491,372

Total deferred inflows of resources $ 2,753,317 $ 406,889 $ 3,160,206

Net Position:
Net investment in capital assets $ 7,976,265 $ 6,414,779 $ 14,391,044
Restricted 2,407,346 469,126 2,876,472
Unrestricted (944,743) (523,045) (1,467,788)

Total net position $ 9,438,868 $ 6,360,860 $ 15,799,728

See accompanying notes to financial statements.

16
 Statement B
CITY OF HARAHAN, LOUISIANA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2024

Program Revenues
Charges Operating Capital Net (Expense) Revenue and Changes in Net Position
for Grants and Grants and Governmental Business-type
Expenses Services Contributions Contributions Activities Activities Total

Governmental Activities:
General government - other $ 2,825,571 $ 1,100,474 $ 1,039,608 $ 1,679,426 $ 993,937 $ - $ 993,937
Public safety - police 2,984,635 - - 985,839 (1,998,796) - (1,998,796)
Public safety - fire 2,217,476 63,977 - 564,000 (1,589,499) - (1,589,499)
Public works 662,503 - - 321,388 (341,115) - (341,115)
Sanitation 1,094,252 1,049,092 - - (45,160) - (45,160)
Recreation 594,162 - - 330,525 (263,637) - (263,637)
Interest and fiscal charges 62,525 - - - (62,525) - (62,525)
Total governmental activities 10,441,124 2,213,543 1,039,608 3,881,178 (3,306,795) - (3,306,795)

Business-Type Activities:
Sewer 1,389,643 1,163,949 - - - (225,694) (225,694)

Total governmental activities $ 11,830,767 $ 3,377,492 $ 1,039,608 $ 3,881,178 (3,306,795) (225,694) (3,532,489)

General revenues
Taxes:
Ad valorem (property) taxes 1,958,449 405,627 2,364,076
Sales and use taxes 5,145,792 - 5,145,792
Other funding sources, including grants:
Fines, forfeitures, and other 256,677 - 256,677
Other state revenue not restricted to specific programs (gaming revenue) 436,147 - 436,147
Interest income 433,326 37,170 470,496
Loss on disposal of assets (1,300) - (1,300)
Miscellaneous 323,900 (12,166) 311,734
Insurance proceeds 156,697 - 156,697
Transfers in (out) (884,246) 884,246 -
Total general revenues and transfers 7,825,442 1,314,877 9,140,319

Changes in net position 4,518,647 1,089,183 5,607,830

Net position, beginning of year 5,640,180 5,282,248 10,922,428

Change in accounting principle Note 17 (719,959) (10,571) (730,530)

Net position - beginning of the year (restated) 4,920,221 5,271,677 10,191,898

Net position, end of year $ 9,438,868 $ 6,360,860 $ 15,799,728

See accompanying notes to financial statements.

17
BASIC FINANCIAL STATEMENTS
FUND FINANCIAL STATEMENTS
 Statement C
CITY OF HARAHAN, LOUISIANA
GOVERNMENTAL FUNDS - BALANCE SHEET
DECEMBER 31, 2024

Special Revenue Funds

Sales Tax Fire Sales Tax ARPA FEMA Capital
General Fund Fund Fund Fund Projects Fund Total

ASSETS
Cash, unrestricted $ 809,305 $ - $ 2,341,710 $ 2,306,635 $ - $ 817,533 $ 6,275,183
Cash, restricted 291,472 - - - - 249,290 540,762
Receivables 2,360,778 231,844 125,636 - 1,016,274 306,000 4,040,532
Due from other funds 3,846,025 - - - - 2,767,682 6,613,707
Prepaid expenses 51,481 - - - - - 51,481

Total assets $ 7,359,061 $ 231,844 $ 2,467,346 $ 2,306,635 $ 1,016,274 $ 4,140,505 $ 17,521,665

LIABILITIES
Accounts payable $ 238,497 $ - $ - $ 321,869 $ - $ 209,171 $ 769,537
Accrued salaries 361,470 - - - - - 361,470
Due to other funds 1,258,345 231,844 60,000 1,984,766 1,942,191 422,055 5,899,201
Unearned revenue 291,472 - - - - 21,452 312,924
Total liabilities 2,149,784 231,844 60,000 2,306,635 1,942,191 652,678 7,343,132

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue 2,261,945 - - - - - 2,261,945
Total deferred inflows of resources 2,261,945 - - - - - 2,261,945

FUND BALANCES (DEFICIT)

Nonspendable 51,481 - - - - - 51,481
Restricted 122,611 - 2,407,346 - - 249,290 2,779,247
Committed - - - - - 3,238,537 3,238,537
Unassigned 2,773,240 - - - (925,917) - 1,847,323
Total fund balances (deficit) 2,947,332 - 2,407,346 - (925,917) 3,487,827 7,916,588

Total liabilities, deferred inflows,

and fund balances $ 7,359,061 $ 231,844 $ 2,467,346 $ 2,306,635 $ 1,016,274 $ 4,140,505 $ 17,521,665

See accompanying notes to financial statements.

18
 Statement D
CITY OF HARAHAN, LOUISIANA
RECONCILIATION OF THE GOVERNMENTAL FUNDS - BALANCE SHEET
TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2024

Total fund balances – governmental funds $ 7,916,588

The cost of capital assets (land, buildings, furniture, and equipment) purchased or
constructed is reported as an expenditure in governmental funds. The Statement of Net
Position includes those capital assets among the assets of the City as a whole. The cost
of those assets is allocated over their estimated useful lives (as depreciation expense) to
the various programs and reported as governmental activities in the Statement of
Activities. Because depreciation expense does not affect financial resources, it is not
reported in governmental funds.

Capital assets $ 13,664,193

Accumulated depreciation (5,687,928) 7,976,265

Accrual basis recognition of interest expenditures (4,408) (4,408)

Net pension liability balances in accordance with GASB 68:

Deferred outflow of resources - related to net pension liability $ 1,267,816
Net pension liability (4,139,721)
Deferred inflow of resources - related to net pension liability (491,372) (3,363,277)

Long-term liabilities applicable to the City’s governmental activities are not due and
payable in the current period and accordingly are not reported as fund liabilities. All
Liabilities – both current and long-term – are reported in the Statement of Net Position.

Balances at December 31, 2024 are:

Hurricane Recovery Revenue Note $ (1,750,000)
Compensated absences (1,336,300) (3,086,300)

Net position – governmental activities $ 9,438,868

See accompanying notes to financial statements.

19
 Statement E
CITY OF HARAHAN, LOUISIANA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES - GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED DECEMBER 31, 2024

Special Revenue Funds

Sales Tax Fire Sales Tax ARPA FEMA Capital Projects
General Fund Fund Fund Fund Fund Total
REVENUES
Taxes
Ad valorem $ 1,958,449 $ - $ - $ - $ - $ - $ 1,958,449
Sales and use - 3,155,020 1,990,772 - - - 5,145,792
Intergovernmental 237,355 - - - - 700,700 938,055
Franchise fees 426,219 - - - - - 426,219
Licenses and permits 674,255 - - - - - 674,255
Fines and forfeitures 256,677 - - - - - 256,677
Charges for services 1,113,069 - - - - - 1,113,069
Gaming revenue 436,147 - - - - - 436,147
Interest income 67,732 - 104,358 135,808 - 125,428 433,326
Federal revenue - - - 2,598,260 1,384,471 - 3,982,731
Insurance proceeds - - - - - 156,697 156,697
Other 252,307 - - - - 71,593 323,900
Total revenues 5,422,210 3,155,020 2,095,130 2,734,068 1,384,471 1,054,418 15,845,317

EXPENDITURES
General government 2,352,224 172,889 - - 58,910 66,588 2,650,611
Public safety - police 2,832,972 - - - - 881 2,833,853
Public safety - fire 1,856,728 - 179,700 - - 13,254 2,049,682
Public works 553,512 - - - - 50,214 603,726
Sanitation 1,056,756 - - - - - 1,056,756
Recreation 436,256 - - - - 58,268 494,524
Debt service
Principal 250,000 - - - - - 250,000
Interest and fiscal charges 63,400 - - - - - 63,400
Capital outlay - - - 469,269 277,469 3,372,061 4,118,799
Total expenditures 9,401,848 172,889 179,700 469,269 336,379 3,561,266 14,121,351

EXCESS (DEFICIENCY) OF REVENUES

OVER EXPENDITURES (3,979,638) 2,982,131 1,915,430 2,264,799 1,048,092 (2,506,848) 1,723,966

OTHER FINANCING SOURCES (USES)

Transfers in 4,684,384 - - - - 1,600,147 6,284,531
Transfers out (436,147) (2,982,131) (900,000) (2,264,799) - (585,700) (7,168,777)
Total other financing sources (uses) 4,248,237 (2,982,131) (900,000) (2,264,799) - 1,014,447 (884,246)

CHANGE IN FUND BALANCE 268,599 - 1,015,430 - 1,048,092 (1,492,401) 839,720

FUND BALANCE - BEGINNING OF YEAR 2,678,733 - 1,391,916 - (1,974,009) 4,980,228 7,076,868

FUND BALANCE (DEFICIT) - END OF YEAR $ 2,947,332 $ - $ 2,407,346 $ - $ (925,917) $ 3,487,827 $ 7,916,588

See accompanying notes to financial statements.

20
 Statement F
CITY OF HARAHAN, LOUISIANA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2024

Total changes in fund balances – governmental funds $ 839,720

Amounts reported for governmental activities in the Statement of Activities are

different because:

Capital outlays are reported in governmental funds as expenditures. However, in the

Statement of Activities, the cost of those assets is allocated over their estimated useful
lives as depreciation expense. This is the amount by which captial outlays exceeds
depreciation expense and loss of disposal in the project.
Capital outlays $ 4,118,799
Loss on disposal of assets (1,300)
Depreciation expense (679,047) 3,438,452

Change in accrual basis recognition of interest expenditures

Current year adjustment for accrued interest 875

Change in net pension liability and deferred inflows and outflows in accordance with
GASB 68 64,989

In the Statement of Activities, certain operating expenses-compensated absences are

measured by the amounts earned during the year. Loan proceeds provide current
financial resources to governmental funds, but issuing debt increases long-term
liabilities in the Statement of Net Position. Repayment of capital leases is an
expenditures in the governmental funds, but the repayment reduces long-term liabilities
in the Statement of Net Position. In the governmental funds, however, expenditures for
these items are measured by the amount of financial resources used (essentially, the
amounts actually paid).

Compensated absences (75,389)

Payment on Hurricane Loan 250,000

Change in net position of governmental activities $ 4,518,647

See accompanying notes to financial statements.

21
BASIC FINANCIAL STATEMENTS
PROPRIETARY FUND
 Statement G
CITY OF HARAHAN, LOUISIANA
PROPRIETARY FUND
STATEMENT OF NET POSITION
DECEMBER 31, 2024

ASSETS
CURRENT ASSETS
Cash $ 160,925
Accounts receivable 639,968
Due from other funds 18,513
Total current assets 819,406

NON-CURRENT ASSETS
Cash, restricted 469,126
Capital assets not depreciated 183,573
Capital assets, net 8,844,823
Total non-current assets 9,497,522

Total assets $ 10,316,928

LIABILITIES, DEFERRED INFLOWS, AND NET POSITION

CURRENT LIABILITIES
Accounts and other payables $ 202,543
Loan payable, current portion 224,991
Due to other funds 733,019
Total current liabilities 1,160,553

NON-CURRENT LIABILITY
Loan payable 2,367,000
Compensated absences payable 21,626
Total non-current liabilities 2,388,626
Total liabilities 3,549,179

DEFERRED INFLOWS OF RESOURCES - UNAVAILABLE REVENUE 406,889

NET POSITION
Net investment in capital assets 6,414,779
Restricted 469,126
Unrestricted (deficit) (523,045)
Total net position 6,360,860

Total liabilities, deferred inflows of resources, and net position $ 10,316,928

See accompanying notes to financial statements.

22
 Statement H
CITY OF HARAHAN, LOUISIANA
PROPRIETARY FUND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
FOR THE YEAR ENDED DECEMBER 31, 2024

OPERATING REVENUES
Charges for service $ 1,152,200
Sewer impact fees 11,749
Total operating revenues 1,163,949

OPERATING EXPENSES
Supplies, maintenance and repairs 787,410
Depreciation 334,323
Salaries and related benefits 183,098
Miscellaneous 84,812
Total operating expenses 1,389,643

Operating loss (225,694)

NON-OPERATING REVENUES (EXPENSES)

Property tax revenue 405,627
Interest income 37,170
Interest expense (12,166)
Total non-operating revenues (expenses) 430,631

INCOME BEFORE TRANSFERS AND CONTRIBUTIONS 204,937

OTHER FINANCING SOURCES

Transfers out -
Total other financing sources 884,246

CHANGE IN NET POSITION 1,089,183

NET POSITION - BEGINNING OF YEAR 5,282,248

PRIOR PERIOD ADJUSTMENT (NOTE 15) (10,571)

NET POSITION - BEGINNING OF YEAR (AS RESTATED) 5,271,677

NET POSITION - END OF YEAR $ 6,360,860

See accompanying notes to financial statements.

23
 Statement I
CITY OF HARAHAN, LOUISIANA
PROPRIETARY FUND
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2024

CASH FLOWS FROM OPERATING ACTIVITIES

Cash received from customers $ 1,095,956
Cash paid to suppliers for goods or services (1,101,066)
Net cash used in operating activities (5,110)

CASH FLOWS FROM FINANCING ACTIVITIES

Property taxes received 393,299
Change in due to other funds 147,075
Net cash provided by financing activities 540,374

CASH FLOWS FROM CAPITAL ACTIVITIES

Purchase and construction of capital assets (324,570)
Payments on note payable (223,000)
Interest paid (12,166)
Net cash used in capital activities (559,736)

CASH FLOWS FROM INVESTING ACTIVITIES

Interest received 37,170
Net cash provided by financing activities 37,170

NET INCREASE IN CASH AND CASH EQUIVALENTS 12,698

CASH AND CASH EQUIVALENTS: BEGINNING OF YEAR 617,353

CASH AND CASH EQUIVALENTS: END OF YEAR $ 630,051

RECONCILIATION TO AMOUNTS ON THE STATEMENT OF

FINANCIAL POSITION:
Cash $ 160,925
Cash, restricted 469,126
Total cash $ 630,051

RECONCILIATION OF OPERATING LOSS TO NET CASH

PROVIDED BY OPERATING ACTIVITIES:
Operating loss $ (225,694)
Adjustments to reconcile operating loss to
net cash used by operating activities
Depreciation 334,323
Defer inflows of resources - unavailable revenue 6,784
Changes in operating assets and liabilities
Accounts receivable (67,993)
Prepaid expenses 11,250
Accounts and other payables (63,780)

Net cash used in operating activities $ (5,110)

See accompanying notes to financial statements.

24
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(1) Summary of Significant Accounting Policies

The City of Harahan, Louisiana (the City) was incorporated under the provisions of the State of
Louisiana Lawrason Act in 1920 as a village with a population then of 500 people and an area of 2.1
square miles. The City is classified as a city in 1953 with a population of over 10,000 people. The
City's population is approximately 9,400 people.

The City's financial statements include the accounts of all City operations. The City's operations
include police and fire protection, waste collection, parks, recreation, public works, and general
administrative services. In addition, the City owns and operates a local sewer system.

The accounting policies of the City conform to accounting principles generally accepted in the United
States of America as applicable to governmental units. The following is a summary of the more
significant policies:

Reporting Entity

In evaluating how to define the reporting entity, for financial statement purposes, the City has
considered all potential component units. The decision to include a potential component unit was
made by applying the criteria set forth in GAAP which defines the reporting entity as the primary
government and those component units for which the primary government is financially accountable.
Financial accountability is defined as appointment of a voting majority of the component unit’s board,
and either a) the ability to impose will by the primary government, or b) the possibility that the
component unit will provide a financial benefit to or impose a financial burden on the primary
government. Application of this criterion and determination of type of presentation involves
considering whether the activity benefits the government and/or its citizens, or whether the activity
is conducted within the geographic boundaries of the government and is generally available to its
citizens. Based upon the application of these criteria, there were no potential component units
required to be included in this report.

The City's financial statements include operations of all activities over which the City exercises
oversight responsibility. Oversight responsibility is demonstrated through financial interdependency,
selection of governing authority, ability to significantly influence operations, and accountability for
fiscal matters and, as such, the City is a reporting entity.

For financial reporting purposes, the City includes all funds and account groups that are controlled
by or dependent on the Mayor and the City's Council.

Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on
fees and charges for support.

25
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(1) Summary of Significant Accounting Policies (continued)

Government-Wide and Fund Financial Statements (continued)

The statement of activities demonstrates the degree to which the direct expenses of a given function
or segment are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or segment. Program revenues include 1) charges to customers or applicants
who purchase, use, or directly benefit from goods, services, or privileges provided by a given function
or segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds are reported as separate columns in the fund financial statements.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they
are budgeted. Grants and similar items are recognized as revenues as soon as all eligibility
requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
The City considers all revenues available if they are collected within 60 days of the end of the current
fiscal period. Grant funds are considered to be earned when qualifying expenditures are made and all
other grant requirements have been met and, accordingly, when such funds are received, they are
recorded as deferred inflows until earned. Expenditures are recorded when the related fund liability
is incurred, except for unmatured interest on general long-term debt which is recognized when due,
and certain compensated absences and claims and judgments which are recognized when the
obligations are expected to be liquidated with expendable available financial resources.

Property taxes, investment earnings, and charges for services are susceptible to accrual. Other
receipts and taxes become measurable and available when cash is received by the government and
are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of
receipt or earlier if the accrual criteria are met. Expenditure-driven grants are recognized as revenue
when the qualifying expenditures have been incurred and all other grant requirements have been met.

The City reports the following major governmental funds:

General Fund - This fund is the general operating fund of the City and is used to account for all
financial resources except those required to be accounted for in another fund.

26
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(1) Summary of Significant Accounting Policies (continued)

Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)

Sales Tax Fund - This fund is used to account for the sales tax proceeds of the City, which are
transferred to the general fund. The sales tax fund is a special revenue fund and records the
receipts of specific revenue sources (other than expendable trusts or major capital projects) that
are legally restricted to expenditures for specified purposes.

Fire Sales Tax Fund - This fund is used to account for the sales tax proceeds for the City of Harahan
sales tax to support the operations of the fire department.

ARPA Fund - This special revenue fund is used to account for the proceeds from the federal
government for the American Rescue Plan Act (ARPA) and related expenses.

FEMA Fund - This special revenue fund is used to account for the repairs and replacement of
facilities, equipment, and supplies damaged by disasters. The funding is reimbursement grants
through FEMA from Hurricane Ida.

Capital Projects Fund - These funds are used to account for financial resources to be used for the
acquisition or construction of capital facilities (other than those financed by Proprietary Funds).

The City reports the following major enterprise fund:

Sewer Fund - This fund is used to account for the sewerage and water treatment operations of the
City where: (a) it is financed and operated in a manner similar to a private business enterprise, and
(b) the periodic determination of net income is appropriate.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund’s principal ongoing operations. The principal operating
revenues of the City’s proprietary fund are charges to users. Operating expenses include the cost of
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.

Cash

The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-
term investments with original maturities of three months or less from the date of acquisition. The
City’s policy is that deposits can only be made in financial institutions insured by the FDIC.

27
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(1) Summary of Significant Accounting Policies (continued)

Restricted Cash

Certain funds of governmental activities and business-type activities as well as certain resources set
aside for bond or loan repayment, are classified as restricted cash on the Statement of Net Position
because their use is limited by applicable bond covenants. In addition, the General Fund reports
restricted cash for unspent Department of Justice funds and the Capital Projects Fund reports
restricted cash for unspent grant funds from the State of Louisiana.

Receivables

Receivables are reported at their gross value and, where appropriate, are reduced by the estimated
portion that is expected to be uncollectible. Receivables are stated at the amount the City expects to
collect from outstanding balances. The City provides for probable uncollectible amounts through a
provision for bad debt expense and an adjustment to a valuation allowance based on its assessment
of the current status of each account. Balances that are still outstanding after management has used
reasonable collection efforts are written off through a charge to the valuation allowance and a credit
to receivables. At December 31, 2024, the City considers all receivables collectible and no allowance
for doubtful accounts has been recorded.

Prepaid Expenditures

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items.

Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, streets,
sidewalks, and similar items), are reported in the applicable governmental or business type activities
columns in the government-wide financial statements. Capital assets are defined by the City as assets
with an initial, individual cost of more than $5,000. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets, donated works of art
and similar assets, and capital assets received in a service concession arrangement are recorded at
acquisition value.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets’ lives are not capitalized. Major outlays for capital assets and improvements are
capitalized as projects are constructed. Interest incurred during the construction phase of capital
assets of business-type activities is included as part of the capitalized value of the assets constructed.

28
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(1) Summary of Significant Accounting Policies (continued)

Capital Assets (continued)

All depreciable capital assets are depreciated using the straight-line method over the estimated useful
lives as follows:

Building and improvements 10-39 years

Computer equipment 5 years
Furniture and fixtures 7-10 years
Other equipment 5-15 years
Transportation equipment 5-10 years
Infrastructure 25 years
Sewer collection system 20-75 years
Sewer treatment plant 10-50 years

Capital assets are reviewed to evaluate prominent events or changes in circumstances to determine
whether impairment of capital assets has occurred. The City follows guidance in Governmental
Accounting Standards Board (GASB) Statement No. 42, as applicable, to record the effects of capital
asset impairments.

Deferred Inflows and Outflows of Resources

In addition to assets and liabilities, the statement of net position and governmental funds balance
sheet will sometimes report separate sections for deferred outflows of resources and deferred inflows
of resources. These separate financial statement elements, deferred outflows of resources and
deferred inflows of resources, represent a consumption or acquisition of net position that applies to a
future period(s) and so will not be recognized as an outflow of resources (expense) or inflow of
resources (revenue) until that time.

The governmental funds report a deferred inflow of resources for unavailable revenue from property
taxes that were prepaid for the subsequent year. These amounts are deferred and will be recognized
as revenue in the subsequent year. The governmental activities have deferred outflows and inflows
that relate to the net pension liability, which include the City’s contributions subsequent to the
measurement date, which is recognized as a reduction of the net pension liability in the subsequent
year. They also include changes in assumptions, differences between expected and actual experience,
and changes in proportion and differences between City contributions and proportionate share of
contributions, which are deferred and amortized over the average expected remaining service lives
of active and inactive members in the plan.

They also include the net difference between projected and actual earnings on pension plan
investments, which is deferred and amortized over a five-year period.

29
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(1) Summary of Significant Accounting Policies (continued)

Unearned Revenue

The governmental funds report a liability for unearned revenue from proceeds from seized assets and
from intergovernmental receipts that were received. These amounts are deferred and will be
recognized as revenue when eligibility requirements are met, which generally means the proceeds
are spent.

Compensated Absences

The compensated absences liability for the City includes two components, the employees annual
leave and sick leave. The City’s policy permits regular full-time employees to accumulate an amount
of earned but unused annual leave and sick leave benefits. Annual leave and sick leave benefits are
accrued in the period they are earned. For employees with 1 year of continuous service, 1 week of
annual leave is earned per year from the employee’s anniversary date. For employees with between
2 and 5 years of continuous service, 2 weeks of annual leave is earned per year. For employees with
6-9 years of employment, 3 weeks of annual leave is earned per year. For employees with 10-13
years of employment, 4 weeks of annual leave is earned per year. For employees with 14 or more
years of continuous service, 6 weeks of annual leave is earned per year. All regular full-time City
employees earn 2 weeks (10 days) of sick leave time on an annual basis.

All earned annual leave for civil service employees such as the police officers and firemen may be
carried forward with no limitation or maximum. Non-civil service City employees earned annual
leave may be carried forward, not to exceed 120 working days of earned annual leave. Upon
separation of employment, the City's employees are paid in full for all earned but unused annual leave
(subject to limitation for non-civil service employees). Sick leave for all City employees may be
carried forward with no limitation or maximum. Upon separation of employment, the City's
employees are paid earned but unused sick leave at a rate of one day for every three days accrued.

GASB Statement No. 101, Compensated Absences, requires governments to accrue a liability for
compensated absences leave that has not been used if all of the following are true (1) The leave
attributable to services already rendered; (2) The leave accumulates; and (3) the leave is more likely
than not to be used for time off or otherwise paid in cash or settled through non-cash means.

The City has recorded the following liabilities, including the salary-related benefits associated with
the payment of compensated absences as of December 31, 2024:
 Sick leave that is expected to be used based on years of service and five-year average of
hours not forfeited multiplied by current year pay rates
 Vacation leave based on maximum vested amount multiplied by current year pay rates

In the Government Wide Financial Statements and the proprietary fund type statements, the total
compensated absences liability is recorded as an expense and a long-term obligation and allocated on
a functional basis.

30
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(1) Summary of Significant Accounting Policies (continued)

Compensated Absences (continued)

A current liability is recorded for the value of the average prior accumulated leave taken in a year in
the enterprise fund statements. No liability is recorded in the governmental fund financial statements.

Long-term obligations

In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the applicable
governmental activities, business-type activities, or proprietary fund type statement of net position.
Bond premiums and discounts, if material to basic financial statements, are deferred and amortized
over the life of the bonds using the straight-line method.

In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.

Fund Balances

In the fund financial statements, governmental fund balance is reported in five classifications that
comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints
on the specific purposes for which those funds can be spent.

The five classifications of fund balance for the governmental funds are as follows:

Nonspendable - resources which cannot be spent because they are either a) not in spendable form
or b) legally or contractually required to be maintained intact.

Restricted - resources with constraints placed on the use of resources which are either a) externally
imposed by creditors (such as through debt covenants), grantors, contributors or laws or regulations
of other governments or; b) imposed by law through constitutional provisions or enabling
legislation.

Committed - resources which are subject to limitations the government imposes on itself at its
highest level of decision-making authority, the City Council, by formal action or passage of a
resolution.

31
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(1) Summary of Significant Accounting Policies (continued)

Fund Balances (continued)

Assigned - resources that are constrained by the government’s intent to be used for specific
purposes but are neither restricted nor committed. The Council may also assign fund balance as it
does when appropriating fund balance to cover a gap between estimated revenue and appropriations
in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only
exist temporarily. In other words, an additional action does not normally have to be taken for the
removal of an assignment. Conversely, as discussed above, an additional action is essential to
either remove or revise a commitment.

Unassigned - resources which have not been assigned to other funds and that have not been
restricted, committed, or assigned to specific purposes within the general fund. The general fund
should be the only fund that reports a positive unassigned fund balance amount.

When both restricted and unrestricted resources are available for use, it is the City’s intent to use
restricted resources first, then unrestricted resources as they are needed. When committed, assigned,
and unassigned resources are available for use, it is the City’s intent to use committed or assigned
resources first, and then unassigned resources as they are needed.

Net Position

Net position is classified in the following components:

Net investment in capital assets – consists of capital assets, including any restricted capital assets,
net of accumulated depreciation and reduced by the outstanding balances of any bonds, notes, or
other borrowings that are attributable to the acquisition, construction, or improvement of those
assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt
attributable to the unspent proceeds is not included in the calculation of invested in capital assets,
net of related debt. Rather, that portion of the debt is included in the same net position component
as the unspent proceeds.

Restricted net position – consists of constraints placed on net position through external constraints
imposed by creditors (such as through debt covenants), grantors, contributors, or laws or
regulations of other governments or constraints imposed by law through constitutional provisions
or enabling legislation consists of external restrictions imposed by grantors or laws and regulations.

Unrestricted net position – consists of all other net position that does not meet the definition of
restricted or net investment in capital assets.

When an expense is incurred for purposes for which both restricted and unrestricted net position is
available, the City’s policy is to apply restricted net position first.

32
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(1) Summary of Significant Accounting Policies (continued)

Use of Estimates

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

Recent Accounting Pronouncements – Adopted

The City adopted Governmental Accounting Standards Board (GASB) Statement No. 100,
"Accounting Changes and Error Corrections – an amendment of GASB statement No. 62.” The
statement enhances financial reporting requirements for accounting changes and error corrections to
provide more understandable, reliable, relevant, consistent, and comparable information.

The City adopted GASB Statement No. 101, “Compensated Absences”. Under this Statement, a
liability for compensated absences is recognized for leave that has not been used if (a) the leave is
attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely
than not to be used for time off or otherwise paid in cash or settled through noncash means. See Note
17 Prior Period Adjustment.

(2) Budgetary Procedures and Budgetary Accounting

The City's procedures in establishing the budgetary data included in the City’s financial statements
are as follows:

(1) Prior to December 1, the Mayor submits to the City's Council a proposed operating line item
budget for the fiscal year commencing the following January 1. The operating budget includes
proposed expenditures and the means of financing them.
(2) Public hearings are conducted in the City to obtain taxpayer comments.
(3) Prior to January 1, the budget is legally adopted through passage of an appropriation ordinance
by the Council.
(4) The City Council must approve transfers of budgeted amounts between line items within a
department and any revisions that alter the total expenditures of any fund or department.
(5) Formal budgetary integration is employed as a management control device during the year for
the general and special revenue funds. Formal budgetary integration is not employed for debt
service funds because effective budgetary control is alternatively achieved through general
obligation bond indenture provisions. Project-length financial plans are adopted for the capital
project funds and are used as an expenditure control device.
(6) The budgets for the general and special revenue funds are adopted on a basis consistent with
accounting principles generally accepted in the United States of America (GAAP). All
unencumbered and unexpended appropriations lapse at year end.

33
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(2) Budgetary Procedures and Budgetary Accounting (continued)

(7) As required by state law, when actual revenues within a fund are failing to meet estimated
annual budgeted revenue by five percent or more, and/or actual expenditures within a fund are
exceeding estimated budgeted expenditures by five percent or more, a budget amendment to
reflect such changes is adopted in an open meeting.

The City adopted the initial 2024 budget for the general fund, the sales tax fund, the fire sales tax
fund, the ARPA fund, the capital projects fund, and the sewer fund in December 2023. The 2024
budgets were amended before December 31, 2024.

(3) Cash

At December 31, 2024, the City had cash (book balances) totaling $7,445,996 in demand deposits.
The bank balances and collateralization for deposit at December 31, 2024 are as follows:

Total bank balances $ 7,616,047

Federal depository insurance $ 250,000

Pledged securities 7,460,483

Total collateral $ 7,710,483

Collateral - Surplus $ 94,436

Louisiana Revised Statutes authorize the City to invest in United States bonds, treasury notes,
certificates or other obligations of the United States of America, or time certificates of deposit of
state banks organized under Louisiana laws and national banks having principal offices in the State.
Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not
be returned to it under state law. As indicated above the City is not exposed to collateral credit risk
at December 31, 2024, because of the collateral surplus.

Of the total cash shown above, $6,275,183 is unrestricted for governmental activities, which includes
$817,533 committed by nature of the fund for capital improvements. Restricted cash for
governmental activities consists of $291,472 related to asset forfeiture funds and $249,290 related to
capital project funds. Restricted cash of $469,126 for business type activities is restricted under the
terms of the DEQ loan agreement. At December 31, 2024, the business type activities (sewer fund)
reports unrestricted cash of $160,925.

34
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(4) Property Taxes

The City levies an ad valorem tax on real property as of January 1. The tax is due and becomes an
enforceable lien on the property on the first day of the month following the filing of the tax rolls by
the assessor with the Louisiana Tax Commission (usually December 1). The tax is delinquent 30
days after its due date (January 1 of the subsequent year). Taxes are levied based on property values
determined by the Jefferson Parish Assessor’s office. The assessed value at January 1, 2023, upon
which the 2024 levies were based, was $109,775,228.

Ad valorem taxes are recorded as revenue of the period for which levied, thus the 2023 property tax,
which was levied to finance the budget for 2024, was recorded as ad valorem tax revenue for the year
ended December 31, 2024. The 2024 property tax which was levied to finance the 2024 year, is
included as deferred inflows of resources – unavailable revenue at December 31, 2024 and will be
recognized as property tax revenue during the year ended December 31, 2025.

The number of mills levied for the City is as follows:

2024 budget 2025 budget Expiration

General operations - 1977 1.610 1.550 n/a
General operations - 1982 2.340 2.250 n/a
General operations 4.100 3.940 n/a
Fire protection (general fund) 5.000 4.800 2035
Police salary and benefits (general fund) 5.000 4.800 2028

Sewer maintenance 0.880 0.850 n/a

Sewer construction and maintenance 3.000 2.880 2027

(5) Accounts Receivable

Accounts receivable at December 31, 2024 consisted of the following:

Property tax $ 2,051,048

Sales and use tax 231,844
Fire sales tax 125,637
Franchise fee 101,353
Video poker 34,898
Sanitation services 143,884
FEMA 1,016,275
Due from State of Louisiana 306,000
Other 29,593
Total governmental receivables 4,040,532
Sewer services - propriety fund 261,591
Property tax - propriety fund 378,377
Total propriety fund receivables 639,968
Total government wide receivables $ 4,680,500
35
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(6) Property, Plant, and Equipment

A summary of changes in governmental fund type property, plant, and equipment is as follows:

January 1, December 31,

2024 Additions Deletions Transfers 2024
Non-depreciable assets:
Land $ 129,680 $ - $ - $ - $ 129,680
Construction in progress 1,129,055 37,558 - (1,138,955) 27,658
Total non-depreciable assets 1,258,735 37,558 - (1,138,955) 157,338

Depreciable assets:
Land improvements and buildings 2,325,629 2,570,219 - 1,138,955 6,034,803
Infrastructure 1,670,998 - - - 1,670,998
Transportation equipment 2,808,782 877,678 (401,771) - 3,284,689
Other equipment 1,402,183 606,018 - - 2,008,201
Furniture and fixtures 53,232 27,326 - - 80,558
Computer equipment 427,606 - - - 427,606
Total depreciable assets 8,688,430 4,081,241 (401,771) 1,138,955 13,506,855

Total asset cost 9,947,165 4,118,799 (401,771) - 13,664,193

Accumulated depreciation
Land improvements and buildings (1,663,415) (142,588) - - (1,806,003)
Infrastructure (662,075) (66,840) - - (728,915)
Transportation equipment (1,762,488) (269,919) 400,471 - (1,631,936)
Other equipment (931,826) (160,205) - - (1,092,031)
Furniture and fixtures (42,898) (2,422) - - (45,320)
Computer equipment (346,650) (37,073) - - (383,723)
Total accumulated depreciation (5,409,352) (679,047) 400,471 - (5,687,928)

Capital assets, net $ 4,537,813 $ 3,439,752 $ (1,300) $ - $ 7,976,265

36
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(6) Property, Plant, and Equipment (continued)

During the year ended December 31, 2024, the City recorded net disposals of $1,300.

Depreciation expense was charged to the functions of the governmental activities as follows:

General government - other $ 134,294

Public safety - police 190,776
Public safety - fire 158,066
Public works 58,777
Sanitation 37,496
Recreation 99,638
$ 679,047

A summary of changes in proprietary fund type property, plant, and equipment is as follows:

January 1, December 31,

2024 Additions Deletions Transfers 2024
Non-depreciable assets:
Land $ 7,121 $ - $ - $ - $ 7,121
Right of way 6,606 - - - 6,606
Construction in progress 427,485 169,848 (28,250) (399,237) 169,846
Total non-depreciable assets 441,212 169,848 (28,250) (399,237) 183,573

Depreciable assets:
Sewerage collection system 6,369,369 - - - 6,369,369
Sewerage treatment plant 3,615,487 585,700 - 399,237 4,600,424
Sewer infrastructure 2,873,086 - - - 2,873,086
Total depreciable assets 12,857,942 585,700 - 399,237 13,842,879

Total asset cost 13,299,154 755,548 (28,250) - 14,026,452

Accumulated depreciation
Sewerage collection system (2,720,137) (97,952) - - (2,818,089)
Sewerage treatment plant (1,652,226) (178,908) - - (1,831,134)
Sewer infrastructure (291,370) (57,463) - - (348,833)
Total accumulated depreciation (4,663,733) (334,323) - - (4,998,056)

Capital assets, net $ 8,635,421 $ 421,225 $ (28,250) $ - $ 9,028,396

37
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(7) Long-term Obligations

Governmental Activities

Bonds Payable

Bonds payable at December 31, 2024 consist of the following:

$2,000,000 2021 Series Hurricane Recovery Revenue

Note due in annual installments of $250,000 including
interest through December 1, 2031, at 3.17%,
collateralized by all fund or revenues received that are not
otherwise restricted. $ 1,750,000

The annual debt service to maturity on bonds outstanding as of December 31, 2024 is as follows:

December 31, Principal Interest Total

2025 $ 250,000 $ 55,475 $ 305,475
2026 250,000 47,550 297,550
2027 250,000 39,625 289,625
2028 250,000 31,700 281,700
2029 250,000 23,775 273,775
2030-2031 500,000 23,775 523,775
Total Bonds $ 1,750,000 $ 221,900 $ 1,971,900

For the year ended December 31, 2024, interest expense of the general fund was $63,400.

The City is subject to the Municipal Finance Law of the State of Louisiana, which limits the amount
of net bonded debt (exclusive of revenue and special assessment bonds) the City may have
outstanding up to 10 percent of the assessed valuation. The statutory debt limit and the amount
available for general obligation borrowing as of December 31, 2024 is $10,977,523.

The bond payable has terms specified in the respective agreement in which an event of default would
declare the principal of the bond then outstanding to be due and payable.

Business-Type Activities

Louisiana Department of Environmental Quality Loan

The City entered into an agreement with the Louisiana Department of Environmental Quality
(LDEQ) whereby the LDEQ committed to loan the City $4,000,000 for improvements to the City’s
wastewater system. The loan was advanced in incremental amounts as project costs are incurred. The
indebtedness to the LDEQ is evidenced through the Taxable Sewer Revenue Bonds, Series 2014. No
drawdowns were made on the loan during the year ended December 31, 2024.

38
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(7) Long-term Obligations (continued)

Business-Type Activities (continued)

Louisiana Department of Environmental Quality Loan (continued)

Future principal payments are based on a percent of the outstanding principal amount on the day
before the applicable principal payment date. Interest on the bonds is incurred at the rate of 0.45%,
and the LDEQ administrative fee rate is 0.5%. Interest and administrative fee payments began on
August 1, 2014 and are due semiannually thereafter. The outstanding balance of the loan was
$2,591,991 at December 31, 2024. The loan is secured by user fees within the sewer fund.

The annual debt service to maturity on the LDEQ loan outstanding as of December 31, 2024 including
interest and administrative fee payments are as follows:

December 31, Principal Interest Admin Fee Total

2025 $ 224,991 $ 11,158 $ 12,397 $ 248,546
2026 227,000 10,141 11,268 248,409
2027 229,000 9,115 10,128 248,243
2028 231,000 8,080 8,978 248,058
2029 233,000 7,036 7,818 247,854
2030-2034 1,200,000 19,166 21,295 1,240,461
2035 247,000 136 151 247,287
$ 2,591,991 $ 64,832 $ 72,035 $ 2,728,858

A summary of changes in long-term obligations are as follows for the year ended December 31, 2024:

Business Type
Governmental Activities Activities
Hurricane Net Pension Louisiana
Revenue Note Liability DEQ Loan Total
January 1 $ 2,000,000 $ 5,241,786 $ 2,814,991 $ 10,056,777
Additions - - - -
Reductions (250,000) (1,102,065) (223,000) (1,575,065)
December 31 $ 1,750,000 $ 4,139,721 $ 2,591,991 $ 8,481,712

Due within
one year $ 250,000 $ - $ 224,991 $ 474,991

As of the year ended December 31, 2023, the compensated absences balances for the governmental
and business activities amounts to $1,260,901 and $19,030, respectively.

As of the year ended December 31, 2024, the compensated absences balances for the governmental
and business activities amounts to $1,336,300, and $21,626, respectively.

39
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(8) Interfund Balances and Transfers

Interfund balances as of December 31, 2024 were as follows:

Due from Due to other

other funds funds
Governmental Funds
General fund $ 3,846,025 $ 1,258,345
FEMA fund - 1,942,191
Sales tax fund - 231,844
Fire sales tax fund - 60,000
ARPA fund - 1,984,766
Capital projects fund 2,767,682 422,055
6,613,707 5,899,201
Proprietary Funds
Sewer fund 18,513 733,019
18,513 733,019

Total $ 6,632,220 $ 6,632,220

Interfund transfers for the year ended December 31, 2024 were as follows:

Transfers In Transfers Out

Governmental Funds
General fund $ 5,248,384 $ 1,000,147
Sales tax fund - 2,982,131
Fire sales tax fund - 900,000
ARPA fund - 2,264,799
Capital projects fund 1,600,147 585,700
6,848,531 7,732,777

Proprietary Funds
Sewer fund 884,246 -
884,246 -

Total $ 7,732,777 $ 7,732,777

The City makes routine interfund transfers to allocate financial resources to the funds that receive
benefit from services provided by another fund, or to establish or close out funds, or to allocate funds
for budgeted expenditures. During the year ended December 31, 2024, the general fund transferred
$436,147 to the capital projects fund to provide annual support and the sales tax fund transferred
$2,982,131 to the general fund for operating purposes. During the year ended December 31, 2024,
the fire sales tax fund transferred $900,000 to the general fund to support fire department
operations. During the year ended December 31, 2024, the capital project fund transferred $585,700
to the sewer fund for assets purchased by the capital projects fund. The ARPA fund transferred
$1,164,000 to the capital project fund to provide additional funding for the senior center, police
department, and recreation departments.

40
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(9) Pension Plans

The City of Harahan is a participating employer in two State-wide cost-sharing multiple employer
defined benefit pension plans that include the Municipal Police Employees’ Retirement System
(MPERS) and the Firefighters’ Retirement System (FRS). Article X, Section 29(F) of the Louisiana
Constitution of 1974 assigns the authority to establish and amend benefit provisions of the State-wide
plans to the State Legislature. Each system is administered by a separate board of trustees.

General Information about the Pension Plans

Plan Description - MPERS

The Municipal Police Employees' Retirement System (MPERS) is the administrator of a cost-sharing
multiple-employer plan. Membership in the System is mandatory for any full-time police officer
employed by a municipality of the State of Louisiana and engaged in law enforcement, empowered
to make arrests, providing he or she does not have to pay social security and providing he or she
meets the statutory criteria. The System provides retirement benefits for municipal police officers.
The projections of benefit payments in the calculation of the total pension liability includes all
benefits to be provided to current active and inactive employees through the System in accordance
with benefit terms and any additional legal agreements to provide benefits that are in force at the
measurement date. Benefit provisions are authorized within Act 189 of 1973 and amended by LRS
11:2211- 11:2233.

Plan Description - FRS

The Firefighters' Retirement System (FRS) is the administrator of a cost-sharing multiple-employer

plan. Membership in the System is a condition of employment for any full-time firefighters who earn
more than $375 per month and are employed by any municipality, parish, or fire protection district
of the State of Louisiana in addition to employees of the Firefighters' Retirement System. The System
provides retirement benefits for their members. The projections of benefit payments in the calculation
of the total pension liability includes all benefits to be provided to current active and inactive
employees through the System in accordance with benefit terms and any additional legal agreements
to provide benefits that are in force at the measurement date.

Benefits Provided - MPERS

Membership Prior to January 1, 2013: A member is eligible for regular retirement after he has been
a member of the System and has 25 years of creditable service at any age or has 20 years of creditable
service and is age 50 or has 12 years creditable service and is age 55. A member is eligible for early
retirement after he has been a member of the System for 20 years of creditable service at any age
with an actuarially reduced benefit.

Benefit rates are three and one-third percent of average final compensation (average monthly earnings
during the highest 36 consecutive months or joined months if service was interrupted) per number of
years of creditable service not to exceed 100% of final salary.

41
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(9) Pension Plans (continued)

General Information about the Pension Plans (continued)

Benefits Provided – MPERS (continued)

Upon the death of an active contributing member, or disability retiree, the plan provides for surviving
spouses and minor children.

Under certain conditions outlined in the statutes, the benefits range from forty to sixty percent of the
member's average final compensation for the surviving spouse. In addition, each child under age
eighteen receives benefits equal to ten percent of the member’s average final compensation or $200
per month, whichever is greater.

Membership Commencing January 1, 2013: Member eligibility for regular retirement, early
retirement, disability, and survivor benefits are based on Hazardous Duty and Non-Hazardous Duty
sub plans. Under the Hazardous Duty sub plan, a member is eligible for regular retirement after he
has been a member of the System and has 25 years of creditable service at any age or has 12 years of
creditable service at age 55. Under the Non-Hazardous Duty sub plan, a member is eligible for regular
retirement after he has been a member of the System and has 30 years of creditable service at any
age, 25 years of creditable service at age 55, or 10 years of creditable service at age 60. Under both
sub plans, a member is eligible for early retirement after he has been a member of the System for 20
years of creditable service at any age, with an actuarially reduced benefit from age 55.

Under the Hazardous and Non-Hazardous Duty sub plans, the benefit rates are three percent and two
and a half percent, respectively, of average final compensation (average monthly earnings during the
highest 60 consecutive months or joined months if service was interrupted) per number of years of
creditable service not to exceed 100% of final salary. Upon death of an active contributing member,
or disability retiree, the plan provides for surviving spouses and minor children.

Under certain conditions outlined in the statues, the benefits range from twenty-five to fifty-five
percent of the member’s average final compensation for the surviving spouse. In addition, each child
under age eighteen receives ten percent of average final compensation or $200 per month whichever
is greater. If deceased member had less than ten years of service, beneficiary will receive a refund of
employee contributions only.

Benefits Provided – FRS

Benefit provisions are authorized within Act 434 of 1979 and amended by LRS 11:2251- 11:2272.
The following is a brief description of the plan and its benefits and is provided for general information
purposes only. Participants should refer to the appropriate statutes for more complete information.

Any person who becomes an employee as defined in RS 11:2252 on and after January 1, 1980, shall
become a member as a condition of employment. No person who has attained age fifty or over shall
become a member of the System, unless the person becomes a member by reason of a merger or
unless the System received an application for membership before the applicant attained the age of
fifty. No person who has not attained the age of eighteen years shall become a member of the System.
42
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(9) Pension Plans (continued)

General Information about the Pension Plans (continued)

Benefits Provided – FRS (continued)

Any person who has retired from service under any retirement system or pension fund maintained
basically for public officers and employees of the state, its agencies or political subdivisions, and
who is receiving retirement benefits therefrom may become a member of this System, provided the
person meets all other requirements for membership.

Service credit from the retirement system or pension plan from which the member is retired shall not
be used for reciprocal recognition of service with this System, or for any other purpose in order to
attain eligibility or increase the amount of service credit in this System.

Deferred Retirement Option Plan benefits (DROP) - MPERS

Deferred Retirement Option Plan: A member is eligible to elect to enter the deferred retirement
option plan (DROP) when he is eligible for regular retirement based on the members’ sub plan
participation. Upon filing the application for the program, the employee's active membership in the
System is terminated. At the entry date into the DROP, the employee and employer contributions
cease. The amount to be deposited into the DROP account is equal to the benefit computed under the
retirement plan elected by the participant at date of application. The duration of participation in the
DROP is thirty-six months or less. If employment is terminated after the three-year period, the
participant may receive his benefits by lump sum payment or a true annuity. If employment is not
terminated, active contributing membership into the System shall resume and upon later termination,
he shall receive additional retirement benefit based on the additional service. For those eligible to
enter DROP prior to January 1, 2004, DROP accounts shall earn interest subsequent to the
termination of DROP participation at a rate of half of one percentage point below the percentage rate
of return of the System's investment portfolio as certified by the actuary on an annual basis but will
never lose money. For those eligible to enter DROP subsequent to January 1, 2004, an irrevocable
election is made to earn interest based on the System’s investment portfolio return or a money market
investment return. This could result in a negative earnings rate being applied to the account. If the
member elects a money market investment return, the funds are transferred to a government money
market account.

43
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(9) Pension Plans (continued)

General Information about the Pension Plans (continued)

Deferred Retirement Option Plan benefits (DROP) - FRS

After completing 20 years of creditable service and age 50 or 25 years at any age, a member may
elect to participate in the deferred retirement option plan (DROP) for up to 36 months. Upon
commencement of participation in the deferred retirement option plan, employer, and employee
contributions to the System cease. The monthly retirement benefit that would have been payable is
paid into the deferred retirement option plan account. Upon termination of employment, a participant
in the program shall receive, at his option, a lump-sum payment from the account of an annuity based
on the deferred retirement option plan account balance in addition to his regular monthly benefit. If
employment is not terminated at the end of the 36 months, the participant resumes regular
contributions to the System. No payments may be made from the deferred retirement option plan
account until the participant retires.

Initial Benefit Option Plan - MPERS

In 1999, the State Legislature authorized the System to establish an Initial Benefit Option program.
Initial Benefit Option is available to members who are eligible for regular retirement and have not
participated in DROP. The Initial Benefit Option program provides both a one-time single sum
payment of up to 36 months of regular monthly retirement benefit, plus a reduced monthly retirement
benefit for life. Interest is computed on the balance based on same criteria as DROP.

Initial Benefit Option Plan - FRS

Effective June 16, 1999, members eligible to retire and who do not choose to participate in DROP
may elect to receive, at the time of retirement, an initial benefit option (IBO) in an amount up to 36
months of benefits, with an actuarial reduction of their future benefits. Such amounts may be
withdrawn or remain in the IBO account earning interest at the same rate as the DROP account.

Contributions - MPERS

Contributions for all members are actuarially determined as required by state statutes but cannot be
less than 9.0% of the employee's earnable compensation excluding overtime but including state
supplemental pay. For the years ending/ended June 30, 2024 and 2023, the actuarially determined
contribution rates were 33.93% and 34.33% respectively, of member's compensation. However, for
the years ending/ended June 30, 2024 and 2023, the total actual employer and employee contribution
rate was 34.86% and 31.25%, respectively. For employees hired prior to January 1, 2013 and for
Hazardous Duty members hired after January 1, 2013, the rates were 33.93% and 31.25%,
respectively for the employer and 10.00% for the employee. For all Non-Hazardous Duty members
hired subsequent to January 1, 2013, the rates were 33.93% and 31.25%, respectively for the
employer and 8.0% for the employee.

44
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(9) Pension Plans (continued)

General Information about the Pension Plans (continued)

Contributions – MPERS (continued)

The employer and employee contribution rates for all members whose earnable compensation is less
than or equal to the poverty guidelines issued by the United States Department of Health and Human
Services were 36.43% and 33.75%, respectively, for employers and 7.50% for the employee.

In accordance with state statutes, the system also receives insurance premium taxes as additional
employer contributions. The tax is considered support from a non-contributing entity and
appropriated by the legislature each year based on an actuarial study. The additional sources are used
as employer contributions and are considered support from non-employer contributing entities but
are not considered special funding situations. Non-employer contributions are recognized as revenue
by the system and are excluded from pension expense for the year. Contributions to the pension plan
from the City were $357,100, $339,751, and $280,812 for the years ended December 31, 2024, 2023,
and 2022, respectively.

Contributions - FRS

Contributions for all members are established by statute at 10.0% for wages above poverty and 8.0%
for wages below poverty for the years ending/ended June 30, 2024 and 2023. The contributions are
deducted from the member's salary and remitted by the City.

According to state statute, employer contributions are actuarially determined each year. For the years
ending/ended June 30, 2024 and 2023, the actuarially determined contribution rates were 33.25% and
32.49%, respectively, of member's compensation. However, for the years ending/ended June 30, 2024
and 2023, employer contributions were 33.25% and 33.25%, respectively, of covered payroll above
poverty and 35.25% and 35.25%, respectively, of covered payroll below poverty. The actual rates
differ from the actuarially required rate due to state statutes that require the contribution rate be
calculated and set two years prior to the year effective. Contributions to the pension plan from the
City were $243,415, $250,647, and $227,714 for the years ended December 31, 2024, 2023, and
2022, respectively.

The System also receives insurance premium tax monies as additional employer contributions. The
tax is considered support from a non-contributing entity and appropriated by the legislature each year
based on an actuarial study.

45
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(9) Pension Plans (continued)

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions

At December 31, 2024, the City reported a combined liability of $4,139,721 for its proportionate
share of the Net Pension liabilities (NPL). The NPL for FRS and MPERS was measured as of June
30, 2024 and the total pension liability used to calculate the NPL was determined based on an
actuarial valuation as of those dates. The City's proportion of the NPL was based on a projection of
the City's long-term share of contributions to the pension plan relative to the projected contribution
of all participating employers, actuarially determined.

The following table reflects the City's proportionate share of the Net Pension Liability for each of the
pension plans, the proportion at June 30, 2024 and the change compared to the June 30, 2023
proportion.

Increase
Net Pension Proportionate
(Decrease) on
Liability at June Rate at June
June 30, 2023
30, 2024 30, 2024
Rate
Multiple Employer Cost Sharing Plans:
Municipal Police Employees' Retirement System $ 2,705,295 0.298599% -0.019937%
Firefighters' Retirement System 1,434,426 0.254757% -0.032744%
Total - Multiple Employer Cost Sharing Plans: $ 4,139,721

The following table reflects the City’s recognized pension expense plus the City’s amortization of
change in proportionate share and difference between employer contributions and proportionate share
of contributions for each of the pension plans for the year ended December 31, 2024.

Pension
Expense
Municipal Police Employees' Retirement System $ 500,656
Firefighters' Retirement System 334,015
$ 834,671

46
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(9) Pension Plans (continued)

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions (continued)

At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources.

Deferred Outflows of Deferred Inflows of

MPERS
Resources Resources
Differences between expected and actual experience $ 146,472 $ (81,836)
Changes of assumptions - -
Net difference between projected and actual earnings on
pension plan investments 75,205 -
Changes in proportion and differences between Employer
contributions and proportionate share of contributions
Change in proportion 152,347 (227,428)
Difference in contributions 60,669 -
Employer contributions subsequent to the measurement date 236,133 -
Total $ 670,826 $ (309,264)

Deferred Outflows of Deferred Inflows of

FRS
Resources Resources
Differences between expected and actual experience $ 107,693 $ (34,114)
Changes of assumptions 61,365 -
Net difference between projected and actual earnings on
pension plan investments 14,510 -
Changes in proportion and differences between Employer
contributions and proportionate share of contributions
Change in proportion 288,920 (147,994)
Difference in contributions 224 -
Employer contributions subsequent to the measurement date 124,278 -
Total $ 596,990 $ (182,108)

Summary totals of deferred outflows of resources and deferred inflows of resources by pension plan
are presented below.

Deferred Outflows of Deferred Inflows of

Resources Resources
Municipal Police Employees' Retirement System $ 670,826 $ (309,264)
Firefighters' Retirement System 596,990 (182,108)
$ 1,267,816 $ (491,372)

47
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(9) Pension Plans (continued)

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions (continued)

Deferred outflows of resources related to pensions resulting from the City’s contributions subsequent
to the measurement date will be recognized as a reduction of net pension liability in the year ended
December 31, 2025. The following table lists the pension contributions made subsequent to the
measurement period for each pension plan.

Subsequent
Contributions
Municipal Police Employees' Retirement System $ 236,133
Firefighters' Retirement System 124,278
$ 360,411

Other amounts reported as deferred outflows of resources and deferred inflows of resources related
to pensions will be recognized in pension expense as follows:

Year MPERS FRS Total

2025 $ (37,360) $ 50,298 $ 12,938
2026 313,878 223,897 537,775
2027 (118,853) (4,058) (122,911)
2028 (32,237) (5,196) (37,433)
2029 - 39,444 39,444
2030 - (13,781) (13,781)
$ 125,429 $ 290,604 $ 416,033

48
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(9) Pension Plans (continued)

Actuarial Assumptions

MPERS FRS
Valuation Date June 30, 2024 June 30, 2024
Actuarial Cost Method Entry Age Normal Cost Entry Age Normal Cost
Actuarial Assumptions:
Expected Remaining
Service Lives 4 years 7 years, closed period
Investment Rate 6.75% net of investment expenses 6.90% (net of investment expenses, including
of Return inflation)

Inflation Rate 2.50% per annum 2.50% per annum

Mortality For annuitants and beneficiaries, the Pub- For active members, mortality was set equal to the
2010 Public Retirement Plans Mortality Pub-2010 Public Retirement Plans Mortality Table
Table for Safety Below-Median Healthy for Safety Below-Median Employees.
Retirees multiplied by 115% for males and
125% for females, each with full For annuitants and beneficiaries, mortality was set
generational projection using the MP2019 equal to the Pub-2010 Public Retirement Plans
scale was used. Mortality Table for Safety Below-Median Healthy
Retirees.
For disabled lives, the Pub-2010 Public
Retirement Plans Mortality Table for Safety For disabled retirees, mortality was set equal to the
Disable Retirees multiplied by 105% for Pub-2010 Public Retirement Plans Mortality Table
males and 115% for females, each with full for Safety Disabled Retirees.
generational projection using the MP2019
scale was used. In all cases the base table was multiplied by 105%
for males and 115% for females, each with full
For employees, the Pub-2010 Public generational projection using the appropriate MP-
Retirement Plans Mortality Table for Safety 2019 scale.
Below-Median Employees multiplied by
115% for males and 125% for females,
each with full generational projection using
the MP2019 scale was used.

Salary Increases Vary from 14.10% in the first two years of service
Salary to 5.20% after 3 or more years; includes inflation
Years of Service Growth Rate and merit increases
1-2 12.30%

Above 2 4.70%

Cost of Living Adjustments The present value of future retirement For the purpose of determining the present value of
benefits is based on benefits currently being benefits, COLAs were deemed not to be
paid by the System and includes previously substantively automatic and only those previously
granted cost-of-living increases. The granted were included.
present values do not include provisions for
potential future increases not yet authorized
by the Board of Trustees.

49
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(9) Pension Plans (continued)

Actuarial Assumptions (continued)

The following table lists the methods used by each of the pension plans in determining the long-term
rate of return on pension plan investments.

MPERS FRS
The forecasted long-term expected rate of return on pension For each year, the actuary determines the reasonable range of
plan investments was determined using a building-block the actuarial valuation interest rate, an expected long-term
method in which best-estimates ranges of expected future real portfolio rate of return and standard deviation based upon the
rates of return (expected returns, net of pension plan System’s target asset allocation and a long-term time horizon.
investment expense and inflation) are developed for each These rates were based on an analysis of the System’s
major asset class. These ranges are combined to produce the portfolio along with expected longterm rates of return,
long-term expected rate of return by weighting the expected standard deviations of return, and correlations between asset
future real rates of return by target asset allocation percentage classes collected from several investment consulting firms in
and by adding expected inflation and an adjustment for the addition to the System’s investment consultant, NEPC. Using
effect of rebalancing/diversification. The resulting forecasted these values and assuming that future portfolio returns are
long-term rate of return is 7.86% for the year ended June 30, normally distributed, ten thousand trials of returns over the
2024. upcoming thirty years were performed. The results of these
trials were organized into percentiles and a reasonable range,
equal to the 40th through 60th percentiles, was set. For the
fiscal year ended June 30, 2024, the reasonable range was set
at 6.73% through 7.91% and the Board of Trustees elected to
set the System’s assumed rate of return at 6.90% for Fiscal
2024.

Best estimates of the arithmetic real rates of return for each major asset class included in the MPERS’
and FRS’ target asset allocations as of June 30, 2024 are summarized in the following table.

Long-Term Expected
Target Allocation
Real Rate of Return
Asset Class MPERS FRS MPERS FRS
Equity 52.00% 54.00% 3.14% 6.47%
Fixed Income 34.00% 30.00% 1.07% 2.25%
Alternatives 14.00% 16.00% 1.03% 7.82%
Total 100.00% 100.00% 5.24% 16.53%
Inflation 2.62% 2.50%
Expected Arithmetic Nominal Return 7.86% 19.03%

50
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(9) Pension Plans (continued)

Actuarial Assumptions (continued)

Discount Rate

The projection of cash flows used to determine the discount rate assumed that plan member
contributions will be made at the current contribution rate and that sponsor contributions will be made
at rates equal to the difference between actuarially determined contribution rates and the member
rate. Based on those assumptions, each of the pension plan’s fiduciary net position was projected to
be available to make all projected future benefit payments of current plan members. Therefore, the
long-term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liability. The discount rate used to measure the total
pension liability for MPERS and FRS was 6.75% and 6.90% for the year ended June 30, 2024.

Sensitivity of the Proportionate Share of the NPL to Changes in the Discount Rate

The following presents the City’s proportionate share of the Net Pension Liability using the discount
rate, as well as what the City’s proportionate share of the Net Pension Liability would be if it were
calculated using a discount rate that is one percentage point lower or one percentage point higher than
the current rate.

Current
1.0% Decrease Discount Rate 1.0% Increase

MPERS
Rates 5.75% 6.75% 7.75%
City's proportionate share of NPL $ 4,018,648 $ 2,705,295 $ 1,608,899

FRS
Rates 5.90% 6.90% 7.90%
City's proportionate share of NPL $ 2,381,448 $ 1,434,426 $ 644,518

Support of Non-employer Contributing Entities

Contributions received by a pension plan from non-employer contributing entities that are not in a
special funding situation are recorded as revenue by the respective pension plan. The City recognizes
revenue in an amount equal to their proportionate share of the total contributions to the pension plan
from these non-employer contributing entities.

51
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(9) Pension Plans (continued)

Support of Non-employer Contributing Entities (continued)

During the year ended December 31, 2024, the City recognized revenue as a result of support received
from non-employer contributing entities for the following amounts for each pension plan:

Non-Employer
Contributing Entity
Revenue
Municipal Police Employees' Retirement System $ 77,670
Firefighters' Retirement System 79,437
$ 157,107

Pension Plan Fiduciary Net Position

MPERS and FRS issue publicly available financial reports that include financial statements and
required supplementary information for the systems. Detailed information about each system’s
fiduciary net position is available in these separately issued financial reports. These reports may be
obtained by visiting the Louisiana Legislative Auditor’s website at www.lla.la.gov and searching
under the Reports section.

Payables to the Pension Plans

The City recorded accrued liabilities to each of the Retirement Systems for the year ended December
31, 2024 mainly due to the accrual for payroll at the end of each of the fiscal years. The amounts due
are included in liabilities under the amounts reported as accounts, salaries, and other payables. The
balance due to each for the retirement systems at December 31, 2024 is as follows:

December 31, 2024

MPERS $ 63,826
FRS 24,060
$ 87,886

(10) Commitments and Contingencies

Risk Management

The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. During the year ended
December 31, 2024, the City carried insurance through various commercial carriers to cover all risks
of loss. The City has no settled claims resulting from these risks that exceeded its commercial
coverage in any of the past three fiscal years.

52
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(10) Commitments and Contingencies (continued)

Litigation

The City is a defendant in several lawsuits. Damages are generally covered by insurance less
deductible for risks retained by the City. The City and its attorneys have reviewed these claims and
lawsuits in order to evaluate the likelihood of an unfavorable outcome to the City and to arrive at an
estimate, if possible, of the amount or range of potential loss to the City. As a result of such a review,
loss contingencies which could be reasonably estimated, have been categorized as "probable",
"reasonably possible", and "remote", as defined in Governmental Accounting Standards Board
Codification Section C50- Claims and Judgements. The City does not believe any potential loss to
the City from any of these lawsuits would have a material impact on the financial statements, as such
no amounts are recorded at December 31, 2024.

Grant Funding

The City participates in a number of federal, state, and local programs which are governed by various
rules and regulations. Costs charged to the respective grant programs are subject to audit and
adjustment by the grantor agencies; therefore, to the extent that the City has not complied with the
rules and regulations governing the grants, refunds of any money received and the collectability of
any related receivable as of December 31, 2024 might be impaired. In the City’s opinion, there are
no significant contingent liabilities relating to compliance with the rules and regulations governing
federal, state, and local grants; therefore, no provision has been recorded in the accompanying
financial statements for such contingencies. Audits of prior years have not resulted in any significant
disallowed costs or refunds. Any costs that would be disallowed would be recognized in the period
agreed upon by the grantor agency and the City.

The City recorded federal assistance revenue from the following programs for the year ended
December 31, 2024.

ARPA Fund
American Rescue Plan Act (ARPA) $ 2,598,260

FEMA Fund
Federal Emergency Management Agency (FEMA) 1,384,471

Total Federal Revenue $ 3,982,731

During the year ended December 31, 2024, the City recognized federal revenue of $2,598,260 from
ARPA funding. At December 31, 2024, the City has no unearned revenue related to unspent ARPA
funds.

53
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(11) Sales Tax

A sales tax of 9.75% was collected on purchases in the City of Harahan during the 2024 year. Of the
9.75% total, 5.0% is levied by the state of Louisiana and 4.75% by Jefferson Parish, for itself and
other local government subdivisions within the Parish. Of the 4.75% levied by Jefferson Parish, 2.0%
is dedicated to the Jefferson Parish School Board and 2.75% is collected for the benefit of the City of
Harahan. Sales tax amounts are dedicated to the general operations of the City and to support law
enforcement. The Jefferson Parish Sheriff’s Office (a separate reporting entity) collects all Jefferson
Parish taxes, except on motor vehicle sales, and retains a collection commission on the share going
to local governments. The state collects parish taxes on motor vehicle sales and remits them back to
the parish of registration. These sales tax amounts are recorded in the sales tax fund.

On March 26, 2022, the voters authorized the City to levy and collect a tax of 0.8%, in perpetuity,
commencing July 1, 2022, upon the sale at retail, the use, the lease or rental, the consumption, and
storage for use or consumption, of tangible personal property and on sales of services in the City, all
as defined by law, with the proceeds of the tax, to be used for the purpose of operating the fire
department of the City, including payment of salaries, insurance and other expenses of the fire
department of the City. These sales tax amounts are recorded in the fire sales tax fund.

(12) Deficit Fund Balance

The FEMA Fund had a deficit in unassigned fund balance of $925,917, as of December 31, 2024.
This deficit in fund balance should be covered by future receipts from FEMA under the Public
Assistance Program. If amounts recovered from FEMA are insufficient to cover the deficit (as well
as any future deficits as a result of disallowed costs), then amounts will need to be transferred from
the general fund in order to cover the deficits or shortfalls.

(13) Hurricane Ida

On August 29, 2021, Hurricane Ida struck the Louisiana gulf coast causing considerable damage to
the Greater New Orleans area and the temporary relocation of some of the population of Jefferson
Parish and the surrounding areas. The City experienced substantial damage to properties including a
firehouse, gymnasium, and sewer facilities. The City incurred costs relating to emergency response
in the immediate days and weeks following the storm. Also, the City incurred costs related to debris
removal throughout the entire City in the weeks and months following the storm. The recreational
facilities were damaged by the debris removal and related cleanup in the aftermath of the hurricane.
During the year ended December 31, 2024, the City received insurance proceeds of $71,961 for
damages caused by Hurricane Ida.

During the year ended December 31, 2024, the City recognized FEMA revenue of $1,384,471 for
damages caused by Hurricane Ida.

54
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(14) Fire Truck Lease Agreement

In 2023, the City entered into a new lease agreement for the purchase of a fire truck. The total cost
of the vehicle is $1,400,433 and will be financed through a capital lease agreement over 15 years at
an interest rate of 4.76%. In June 2024, the City made the first interest payment in the amount of
$83,606. The City took delivery of the fire truck in February 2025 and therefore no amounts related
to the fire truck are included in the 2024 financial statements.

(15) Agreement with the State of Louisiana

In February 2024, the City entered into an agreement with the State of Louisiana Office of Facility
Planning and Control for total funding of $4,705,000 with a 25% match from the City of $1,568,333
for a total project cost of $6,273,333. The project is funding the related planning and construction of
emergency improvements to the sewer collection system and an overhaul to the treatment system. In
May 2024, the City entered into a contract with a company for an amount not to exceed the standard
rate of $800,460 to provide engineering services throughout the project including design, bidding,
construction, surveying, and resident inspection. As of December 31, 2024, there were no amounts
drawn and outstanding.

(16) Restricted Fund Balance and Net Position

Restricted fund balance consisted of the following as of December 31, 2024:

Governmental Funds
Police compensation $ 122,611
Fire department 2,407,346
Capital projects 249,290
$ 2,779,247

Restricted net position consisted of the following as of December 31, 2024:

Proprietary Funds
Debt service $ 242,247
Repairs and maintenance 226,879
$ 469,126

55
 CITY OF HARAHAN, LOUISIANA

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024

(17) Prior Period Adjustment

The City adopted GASB 101 – Compensated absences that was effective January 1, 2024. The impact
on the net position of the City as of December 31, 2023, is as follows:

Governmentwide (Govermental Activities)

Net position as previously reported, December 31, 2023 $ 5,640,180

Change in accounting principle (719,959)
Net position, as restated, December 31, 2023 $ 4,920,221

Proprietary Fund
Net position as previously reported, December 31, 2023 $ 5,282,248
Change in accounting principle (10,571)
Net position, as restated, December 31, 2023 $ 5,271,677

56
REQUIRED SUPPLEMENTARY INFORMATION (PART 2)
 Schedule 1
CITY OF HARAHAN, LOUISIANA
GENERAL FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED DECEMBER 31, 2024

Variance -
Initial Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Ad valorem taxes $ 1,939,927 $ 1,958,148 $ 1,958,449 $ 301
Intergovernmental 198,506 148,692 237,355 88,663
Franchise fees 484,279 453,585 426,219 (27,366)
Fees, licenses and permits 578,096 633,979 674,255 40,276
Fines and forfeitures 337,062 270,719 256,677 (14,042)
Charges for services 1,179,900 1,187,356 1,113,069 (74,287)
Gaming revenue 400,000 403,835 436,147 32,312
Interest income 106,319 52,195 67,732 15,537
Other 240,514 235,509 252,307 16,798
Total revenues 5,464,603 5,344,018 5,422,210 78,192

EXPENDITURES
General government - other 2,153,747 2,296,672 2,352,224 (55,552)
Public safety - police 2,647,453 2,561,349 2,832,972 (271,623)
Public safety - fire 2,053,060 1,976,067 1,856,728 119,339
Public works 452,554 520,083 553,512 (33,429)
Sanitation 1,116,000 1,057,033 1,056,756 277
Recreation 370,573 378,674 436,256 (57,582)
Debt service - principal 249,281 250,000 250,000 -
Debt service - interest 65,000 64,468 63,400 1,068
Capital outlay - - - -
Total expenditures 9,107,668 9,104,346 9,401,848 (297,502)

DEFICIENCY OF REVENUES
UNDER EXPENDITURES (3,643,065) (3,760,328) (3,979,638) (219,310)

OTHER FINANCING SOURCES (USES)

Transfers in 3,953,908 3,968,927 4,684,384 715,457
Transfers out (400,000) (403,835) (436,147) (32,312)
Total other financing sources 3,553,908 3,565,092 4,248,237 683,145

CHANGE IN FUND BALANCE (89,157) (195,236) 268,599 463,835

FUND BALANCE - BEGINNING OF YEAR 2,678,733 2,678,733 2,678,733 -

FUND BALANCE - END OF YEAR $ 2,589,576 $ 2,483,497 $ 2,947,332 $ 463,835

See accompanying independent auditors' report.

57
 Schedule 2
CITY OF HARAHAN, LOUISIANA
SALES TAX FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED DECEMBER 31, 2024

Variance -
Initial Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Sales and use tax revenue $ 3,231,856 $ 3,241,391 $ 3,155,020 $ (86,371)
Interest income 1,944 3,164 - (3,164)
Total revenues 3,233,800 3,244,555 3,155,020 (89,535)

EXPENDITURES
General government 180,541 175,628 172,889 (2,739)
Total expenditures 180,541 175,628 172,889 (2,739)

EXCESS OF REVENUES
OVER EXPENDITURES 3,053,259 3,068,927 2,982,131 (86,796)

OTHER FINANCING USES

Transfers out (3,053,908) (3,068,927) (2,982,131) (86,796)
Total other financing (uses) (3,053,908) (3,068,927) (2,982,131) (86,796)

CHANGE IN FUND BALANCE (649) - - -

FUND BALANCE - BEGINNING OF YEAR - - - -

FUND BALANCE - END OF YEAR $ (649) $ - $ - $ -

See accompanying independent auditors' report.

58
 Schedule 3
CITY OF HARAHAN, LOUISIANA
FIRE SALES TAX FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED DECEMBER 31, 2024

Variance -
Initial Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Sales and use tax revenue $ 1,500,000 $ 2,028,293 $ 1,990,772 $ (37,521)
Interest income 32,325 103,535 104,358 823
Total revenues 1,532,325 2,131,828 2,095,130 (36,698)

EXPENDITURES
Public safety - fire 125,000 184,098 179,700 (4,398)
Total expenditures 125,000 184,098 179,700 (4,398)

EXCESS OF REVENUES
OVER EXPENDITURES 1,407,325 1,947,730 1,915,430 (32,300)

OTHER FINANCING USES

Transfers out (900,000) (900,000) (900,000) -
Total other financing (uses) (900,000) (900,000) (900,000) -

CHANGE IN FUND BALANCE 507,325 1,047,730 1,015,430 (32,300)

FUND BALANCE - BEGINNING OF YEAR 1,391,916 1,391,916 1,391,916 -

FUND BALANCE - END OF YEAR $ 1,899,241 $ 2,439,646 $ 2,407,346 $ (32,300)

See accompanying independent auditors' report.

59
 Schedule 4
CITY OF HARAHAN, LOUISIANA
ARPA FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED DECEMBER 31, 2024

Variance -
Initial Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Federal revenue $ - $ 1,732,955 $ 2,598,260 $ 865,305
Interest income 100,000 138,141 135,808 (2,333)
Total revenues 100,000 1,871,096 2,734,068 862,972

EXPENDITURES
General government - 68,955 - 68,955
Capital Outlay - - 469,269 (469,269)
Total expenditures - 68,955 469,269 (400,314)

EXCESS OF REVENUES
OVER EXPENDITURES 100,000 1,802,141 2,264,799 1,263,286

OTHER FINANCING USES

Transfers out (100,000) (1,802,141) (2,264,799) 462,658
Total other financing (uses) (100,000) (1,802,141) (2,264,799) 462,658

CHANGE IN FUND BALANCE - - - -

FUND BALANCE - BEGINNING OF YEAR - - - -

FUND BALANCE - END OF YEAR $ - $ - $ - $ -

See accompanying independent auditors' report.

60
 Schedule 5
CITY OF HARAHAN, LOUISIANA
FEMA FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED DECEMBER 31, 2024

Variance -
Initial Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Federal revenue $ - $ 124,387 $ 1,384,471 $ 1,260,084
Total revenues - 124,387 1,384,471 1,260,084

EXPENDITURES
General government - - 58,910 (58,910)
Interest and fiscal charges - - - -
Capital outlay 1,000,000 836,379 277,469 (558,910)
Total expenditures 1,000,000 836,379 336,379 (617,820)

EXCESS (DEFICIENCY) OF REVENUES

UNDER EXPENDITURES (1,000,000) (711,992) 1,048,092 1,877,904

CHANGE IN FUND BALANCE (1,000,000) (711,992) 1,048,092 1,760,084

FUND BALANCE (DEFICIT) - BEGINNING OF

YEAR (1,974,009) (1,974,009) (1,974,009) -

FUND BALANCE (DEFICIT) - END OF YEAR $ (2,974,009) $ (2,686,001) $ (925,917) $ 1,760,084

See accompanying independent auditors' report.

61
 Schedule 6
CITY OF HARAHAN, LOUISIANA
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
COST SHARING PLANS ONLY
FOR THE YEAR ENDED DECEMBER 31, 2024 (*)

Employer's
proportionate share
Employer's Employer's of the net pension Plan fiduciary net
proportion of the proportionate share liability (asset) as a position as a
Year ended net pension of the net pension Employer's percentage of its percentage of the
June 30 liability (asset) liability (asset) covered payroll covered payroll total pension liability

Municipal Police Employees' Retirement System

2024 0.2986% $ 2,705,295 $ 1,029,997 262.6508% 75.8402%

2023 0.3185% $ 3,365,323 $ 950,118 354.2005% 71.3030%
2022 0.2812% $ 2,874,005 $ 878,177 327.2694% 70.7991%
2021 0.3343% $ 1,781,932 $ 797,258 223.5076% 84.0881%
2020 0.2840% $ 2,625,127 $ 1,009,725 259.9844% 70.9450%
2019 0.2365% $ 2,148,061 $ 745,771 288.0323% 71.0078%
2018 0.2691% $ 2,274,785 $ 710,290 320.2614% 71.8871%
2017 0.1930% $ 1,684,561 $ 574,178 293.3865% 70.0815%
2016 0.2201% $ 2,062,451 $ 631,991 326.3418% 66.0422%
2015 0.2158% $ 1,690,340 $ 574,637 294.1579% 70.7303%

Firefighters Retirement System

2024 0.2548% $ 1,434,426 $ 751,468 190.8832% 81.6785%

2023 0.2875% $ 1,876,463 $ 769,823 243.7525% 77.6898%
2022 0.2251% $ 1,587,443 $ 678,545 233.9481% 74.6773%
2021 0.2237% $ 792,646 $ 571,421 138.7149% 86.7825%
2020 0.2119% $ 1,468,788 $ 550,956 266.5890% 72.6117%
2019 0.1969% $ 1,232,670 $ 475,766 259.0917% 73.9643%
2018 0.1971% $ 1,133,545 $ 439,205 258.0902% 74.7634%
2017 0.1669% $ 956,531 $ 389,641 245.4903% 73.5479%
2016 0.1702% $ 1,113,458 $ 383,833 290.0892% 68.1550%
2015 0.1793% $ 967,772 $ 381,072 253.9604% 72.4475%

Schedule is intended to show information for 10 years.

(*) The amounts presented were determined as of the measurement date (year ended June 30)

62
 Schedule 7
CITY OF HARAHAN, LOUISIANA
SCHEDULE OF EMPLOYER CONTRIBUTIONS TO EACH RETIREMENT SYSTEM
COST SHARING PLANS ONLY
FOR THE YEAR ENDED DECEMBER 31, 2024

Contributions in
relation to the
Year ended Contractually contractually Contributions as a
December required required contribution Contribution Employers covered percentage of
31 contribution (1) (2) deficiency (excess) payroll (3) covered payroll

Municipal Police Employees' Retirement System

2024 $ 357,100 $ 357,100 $ - $ 1,052,616 33.93%

2023 $ 339,751 $ 339,751 $ - $ 1,014,366 33.49%
2022 $ 280,812 $ 280,812 $ - $ 877,262 32.01%
2021 $ 269,977 $ 269,977 $ - $ 965,013 27.98%
2020 $ 349,162 $ 349,162 $ - $ 852,805 40.94%
2019 $ 260,978 $ 260,978 $ - $ 806,037 32.38%
2018 $ 225,800 $ 225,800 $ - $ 717,127 31.49%
2017 $ 202,309 $ 202,309 $ - $ 646,954 31.27%
2016 $ 160,576 $ 160,576 $ - $ 525,053 30.58%
2015 $ 190,359 $ 190,359 $ - $ 621,844 30.61%

Firefighters Retirement System

2024 $ 243,415 $ 243,415 $ - $ 732,075 33.25%

2023 $ 250,647 $ 250,647 $ - $ 753,832 33.25%
2022 $ 227,714 $ 227,714 $ - $ 674,708 33.75%
2021 $ 188,641 $ 188,641 $ - $ 571,421 33.01%
2020 $ 165,498 $ 165,498 $ - $ 550,956 30.04%
2019 $ 134,329 $ 134,329 $ - $ 494,853 27.15%
2018 $ 125,245 $ 125,245 $ - $ 456,040 27.46%
2017 $ 115,668 $ 115,668 $ - $ 446,279 25.92%
2016 $ 90,633 $ 90,633 $ - $ 341,374 26.55%
2015 $ 108,362 $ 108,362 $ - $ 383,587 28.25%

Schedule is intended to show information for 10 years.

(1) Employer contribution rate multiplied by employer's covered employee payroll

(2) Actual employer contributions remitted to Retirement systems
(3) Employers covered payroll amount for the year ended December 31 of each year

63
SUPPLEMENTARY INFORMATION
 Schedule 8
CITY OF HARAHAN, LOUISIANA
SCHEDULE OF COMPENSATION PAID TO CITY COUNCIL MEMBERS
FOR THE YEAR ENDED DECEMBER 31, 2024

Jason Asbill $ 15,500

Tommy Budde 15,500
Eric Chatelain 15,500
Paul Johnston 15,500
Michael Ricks 15,500
$ 77,500

See accompanying independent auditors' report.

64
 Schedule 9
CITY OF HARAHAN, LOUISIANA
SCHEDULE OF COMPENSATION, BENEFITS,
AND OTHER PAYMENTS TO AGENCY HEAD
FOR THE YEAR ENDED DECEMBER 31, 2024

Agency Head Name: Tim Baudier, Mayor

Purpose Amount
Salary $ 77,495
Benefits - Medical 9,122
Benefits - Vision 74
Benefits - Life 210
Benefits - Accident 203
Car Allowance 956
$ 88,060

See accompanying independent auditors' report.

65
 Schedule 10
Justice System Funding Schedule - Collecting/Disbursing Entity
As Required by Act 87 of the 2020 Regular Legislative Session
Identifying Information
Entity Name City of Harahan
LLA Entity ID # (This is the ID number assigned to the entity by the Legislative Auditor for identification purposes.) 2176
Date that reporting period ended (mm/dd/yyyy) December 31, 2024
Second Six
First Six Month Month Period
Period Ended Ended
Cash Basis Presentation 6/30/2024 12/31/2024

Beginning Balance of Amounts Collected (i.e. cash on hand) $ - $ -

Add: Collections
Civil Fees (including refundable amounts such as garnishments or advance deposits ) - -
Bond Fees - -
Asset Forfeiture/Sale - -
Pre-Trial Diversion Program Fees - -
City of Harahan, Criminal Court Costs/Fees 61,921 88,066
City of Harahan, Criminal Fines - Contempt 20,925 27,053
City of Harahan, Court Fines 30,263 46,291
City of Harahan, Technology fee 4,393 6,303
City of Harahan, Appearance fee 5,940 9,093
Restitution - -
Probation/Parole/Supervision Fees - -
Service/Collection Fees (e.g. credit card fees, report fees, 3rd party service fees) 1,272 1,916
Interest Earnings on Collected Balances - -
Other (do not include collections that fit into more specific categories above) - -

Subtotal Collections 124,714 178,722

Less: Disbursements To Governments & Nonprofits:

City of Harahan, Criminal Court Costs/Fees - -

City of Harahan, Criminal Fines - Other - -
ACT 50 Crimestoppers INC. - Crimestoppers 638 958
ACT 440 Louisiana Commission on Law Enforcement - Louisiana Commission on Law Enforcement 634 958
ACT 250 Crime Victims Reparations Fund - Louisiana Commission on Law Enforcement 195 113
Indigent Defender Fund - Public Defenders Office 11,028 16,975
ACT 152 Trial Court Case Management - Treasurer State of Louisiana 955 1,438
ACT 654 Traumatic Head & Spinal Cord Injury - DHH - Traumatic Head and Spinal Cord Injury Trust Fund Program 808 1,565
ACT 131 LA Judicial College - Louisiana Supreme Court 159 239
ACT 508 Disability Affairs Trust Fund - Disability Affairs Trust Fund - -

Less: Amounts Retained by Collecting Agency

Collection Fee for Collecting/Disbursing to Others Based on Percentage of Collection - -
Collection Fee for Collecting/Disbursing to Others Based on Fixed Amount - -
Amounts "Self-Disbursed" to Collecting Agency (must include a separate line for each collection type, as applicable ) - Example:
Criminal Fines - Other (Additional rows may be added as necessary ) - -
City of Harahan, Criminal Court Costs/Fees 48,776 67,736
City of Harahan, Criminal Fines - Contempt 20,925 27,053
City of Harahan, Court Fines 30,263 46,291
City of Harahan, Technology fee 4,393 6,303
City of Harahan, Appearance fee 5,940 9,093

Less: Disbursements to Individuals/3rd Party Collection or Processing Agencies

Civil Fee Refunds - -
Bond Fee Refunds - -
Restitution Payments to Individuals (additional detail is not required) - -
Other Disbursements to Individuals (additional detail is not required) - -
Payments to 3rd Party Collection/Processing Agencies - -

Subtotal Disbursements/Retainage 124,714 178,722

Total: Ending Balance of Amounts Collected but not Disbursed/Retained (i.e. cash on hand) - -

Ending Balance of "Partial Payments" Collected but not Disbursed (only applies if collecting agency does not disburse partial
payments until fully collected ) - This balance is included in the Ending Balance of Amounts Collected but not Disbursed/Retained
above. - -

Other Information:

Ending Balance of Total Amounts Assessed but not yet Collected (i.e. receivable balance ) - -

Total Waivers During the Fiscal Period (i.e. non-cash reduction of receivable balances, such as time served or community service ) - -

See accompanying independent auditors' report.

66
 CITY OF HARAHAN

REPORTS ON COMPLIANCE AND INTERNAL CONTROL

DECEMBER 31, 2024

CITY OF HARAHAN

CONTENTS

PAGE

Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards 1

Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control
Over Compliance Required by the Uniform Guidance and the Schedule of Expenditures
of Federal Awards 3

Schedule of Expenditures of Federal Awards 6

Notes to Schedule of Expenditures of Federal Awards 7

Schedule of Findings and Questioned Costs 9

Summary Schedule of Prior Audit Findings 13

 EisnerAmper LLP
8550 United Plaza Blvd.
Suite 1001
Baton Rouge, LA 70809
T 225.922.4600
F 225.922.4611
www.eisneramper.com

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS

To the Honorable Mayor and the City Council

City of Harahan, Louisiana

We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States (Government Auditing Standards), the financial
statements of the governmental activities, the business-type activities, and each major fund of the City of
Harahan (the "City"), as of and for the year ended December 31, 2024, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements, and have issued our report
thereon dated June 30, 2025.

Report on Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) as a basis for designing the audit procedures that are appropriate
in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not
express an opinion on the effectiveness of the City's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements, on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the City's financial
statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,
yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we considered to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that have not been identified.

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City's financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements, noncompliance with which could have a direct and material effect on the financial
statements. However, providing an opinion on compliance with those provisions was not an objective of
our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances
of noncompliance or other matters that are required to be reported under Government Auditing Standards
and which are described in the accompanying schedule of findings and questioned costs as items 2024-
001 and 2024-002.

“EisnerAmper” is the brand name under which EisnerAmper LLP and Eisner Advisory Group LLC and its subsidiary entities provide professional services.
EisnerAmper LLP and Eisner Advisory Group LLC are independently owned firms that practice in an alternative practice structure in accordance with the AICPA
Code of Professional Conduct and applicable law, regulations and professional standards. EisnerAmper LLP is a licensed CPA firm that provides attest services,
and Eisner Advisory Group LLC and its subsidiary entities provide tax and business consulting services. Eisner Advisory Group LLC and its subsidiary entities are
not licensed CPA firms.
The City's Response to Findings

Government Auditing Standards requires the auditor to perform limited procedures on the City's response
to the findings identified in our audit and described in the accompanying schedule of findings and
questioned costs. The City's response was not subjected to the other auditing procedures applied in the
audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control
or on compliance. This report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City's internal control and compliance. Accordingly, this
communication is not suitable for any other purpose.

EISNERAMPER LLP
Baton Rouge, Louisiana
June 30, 2025

EisnerAmper LLP
www.eisneramper.com
 EisnerAmper LLP
8550 United Plaza Blvd.
Suite 1001
Baton Rouge, LA 70809
T 225.922.4600
F 225.922.4611
www.eisneramper.com

INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM
GUIDANCE AND THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

To the Honorable Mayor and the City Council

City of Harahan, Louisiana

Report on Compliance for the Major Federal Program

Opinion on the Major Federal Program

We have audited the City of Harahan's (the City) compliance with the types of compliance requirements
identified as subject to audit in the OMB Compliance Supplement that could have a direct and material
effect on the City's major federal program for the year ended December 31, 2024. The City's major federal
program is identified in the summary of auditors' results section of the accompanying schedule of findings
and questioned costs.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to
above that could have a direct and material effect on its major federal program for the year ended
December 31, 2024.

Basis for Opinion on the Major Federal Program

We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards
and the Uniform Guidance are further described in the Auditors' Responsibilities for the Audit of Compliance
section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion on compliance for the major federal program.
Our audit does not provide a legal determination of the City's compliance with the compliance requirements
referred to above.

Responsibilities of Management for Compliance

Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City's
federal programs.

“EisnerAmper” is the brand name under which EisnerAmper LLP and Eisner Advisory Group LLC and its subsidiary entities provide professional services.
EisnerAmper LLP and Eisner Advisory Group LLC are independently owned firms that practice in an alternative practice structure in accordance with the AICPA
Code of Professional Conduct and applicable law, regulations and professional standards. EisnerAmper LLP is a licensed CPA firm that provides attest services,
and Eisner Advisory Group LLC and its subsidiary entities provide tax and business consulting services. Eisner Advisory Group LLC and its subsidiary entities are
not licensed CPA firms.
Auditors' Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally
accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect
material noncompliance when it exists. The risk of not detecting material noncompliance resulting from
fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material if there is a substantial likelihood that, individually or
in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance
about the City's compliance with the requirements of the major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing
Standards, and the Uniform Guidance, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on
a test basis, evidence regarding the City's compliance with the compliance requirements referred
to above and performing such other procedures as we considered necessary in the circumstances.

• Obtain an understanding of the City's internal control over compliance relevant to the audit in order
to design audit procedures that are appropriate in the circumstances and to test and report on
internal control over compliance in accordance with the Uniform Guidance, but not for the purpose
of expressing an opinion on the effectiveness of the City's internal control over compliance.
Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.

Other Matters

The results of our auditing procedures disclosed an instance of noncompliance which is required to be
reported in accordance with the Uniform Guidance and which is described in the accompanying schedule
of findings and questioned costs as item 2024-003. Our opinion on the major federal program is not
modified with respect to this matter.

Government Auditing Standards requires the auditor to perform limited procedures on the City's response
to the noncompliance findings identified in our compliance audit described in the accompanying schedule
of findings and questioned costs. The City's response was not subjected to the other auditing procedures
applied in the audit of compliance and, accordingly, we express no opinion on the response.

Report on Internal Control over Compliance

Our consideration of internal control over compliance was for the limited purpose described in the Auditors'
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies
in internal control over compliance that might be material weaknesses or significant deficiencies in internal
control over compliance and therefore, material weaknesses or significant deficiencies may exist that were
not identified. We did not identify any deficiencies in internal control over compliance that we consider to
be material weaknesses. However, as discussed below, we did identify a certain deficiency in internal
control over compliance that we consider to be a significant deficiency.

EisnerAmper LLP
www.eisneramper.com
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or a combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a federal program will not
be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type
of compliance requirement of a federal program that is less severe than a material weakness in internal
control over compliance, yet important enough to merit attention by those charged with governance. We
consider the deficiency in internal control over compliance described in the accompanying schedule of
findings and questioned costs as items 2024-003 and 2024-004 to be significant deficiencies.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, no such opinion is expressed.

Government Auditing Standards requires the auditor to perform limited procedures on the City's response
to the internal control over compliance findings identified in our compliance audit described in the
accompanying schedule of findings and questioned costs. The City's response was not subjected to the
other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on
the response.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

We have audited the financial statements of the governmental activities, the business-type activities, and
each major fund of the City, as of and for the year ended December 31, 2024, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements. We issued our report
thereon dated June 30, 2025, which contained unmodified opinions on those financial statements based
on our audit. Our audit was performed for the purpose of forming opinions on the financial statements that
collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal
awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a
required part of the basic financial statements. Such information is the responsibility of management and
was derived from and relates directly to the underlying accounting and other records used to prepare the
basic financial statements. The information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our opinion,
the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic
financial statements as a whole.

EISNERAMPER LLP
Baton Rouge, Louisiana
June 30, 2025

EisnerAmper LLP
www.eisneramper.com
 CITY OF HARAHAN
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
DECEMBER 31, 2024

Federal
Assistance Federal
Federal Grantor/Program or Cluster Title Listing Number Grant Number Expenditures

United States Department of Homeland Security

Passed through Louisiana Governor's Office of Homeland
Security and Emergency Preparedness:
Disaster Grants - Public Assistance (Presidentially Declared
Disasters) 97.036 FEMA-DR-4611 $ 1,384,471

Total United States Department of Homeland Security 1,384,471

United States Department of Treasury

Direct Program
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 None 2,598,260

Total United States Department of Treasury 2,598,260

Total Expenditures of Federal Awards $ 3,982,731

See the accompanying notes to the Schedule of Expenditures of Federal Awards. 6

CITY OF HARAHAN
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED DECEMBER 31, 2024

1. Basis of Presentation

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal
grant activity of the City of Harahan (the City) under programs of the federal government for the year
ended December 31, 2024. The information in this Schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The
City’s reporting entity is defined in Note 1 to the financial statements for the year ended December 31,
2024. Federal awards received directly from federal agencies, as well as federal awards passed
through other government agencies, are included on the Schedule.

2. Summary of Significant Accounting Policies

Expenditures reported on the accompanying Schedule are reported on the modified accrual basis of
accounting, which is described in Note 1 to the City’s financial statements. Such expenditures are
recognized following the cost principles contained in accordance with the Uniform Guidance wherein
certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some
amounts presented in this schedule may differ from amounts presented, or used in the preparation of,
the basic financial statements.

3. Relationship to Financial Statements

Federal award expenditures are reported in the City’s financial statements as follows:

Federal Sources
ARPA fund
American Rescue Plan Act (ARPA) $ 2,598,260

FEMA fund
Federal Energency Management Agency (FEMA) 1,384,471
Total federal revenue $ 3,982,731

4. De Minimis Cost Rate

During the year ended December 31, 2024, the City has elected not to use the 10-percent de minimis
indirect cost rate allowed under the Uniform Guidance.

5. Amounts Passed Through to Subrecipients

During the year ended December 31, 2024, the City did not pass through any federal funds to
subrecipients.

6. Disaster Grant – Public Assistance Listing 97.036

The FEMA grant expenditures are reported on the SEFA when 1) FEMA has approved the project
application, and 2) eligible expenditures have been incurred. During the year ending December 31,
2024, FEMA approved $1,384,471 of eligible expenditures, of which $947,780 and $436,691 were
incurred during the years ending December 31, 2023, and 2022, respectively.

7
CITY OF HARAHAN
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED DECEMBER 31, 2024

Part I – Summary of Auditors’ Results

Financial Statement Section

Type of auditors’ report issued on the financial statements Unmodified

Internal control over financial reporting:

 Material weakness(es) identified? No

 Significant deficiency(ies) identified? No

Noncompliance material to financial statements noted? Yes

Federal Awards Section

Internal controls over major programs:

 Material weakness(es) identified? No

 Significant deficiency(ies) identified that are not considered

to be material weaknesses? Yes

Type of auditors’ report issued on compliance for major program: Unmodified

Any audit findings disclosed that are required to be reported in

accordance with the Uniform Guidance? Yes

Identification of major program:

COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – 21.027

Dollar threshold used to distinguish between Type A and Type B programs: $750,000

Auditee qualified as a low-risk auditee under Section 530 of the Uniform Guidance: No

8
CITY OF HARAHAN
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED DECEMBER 31, 2024

Part II – Financial Statement Findings Section

2024-001 BUDGET ACT

Criteria: Louisiana Revised Statue 39.1311 requires governments to amend their

budgets when revenues and other financing sources are falling short of
the budget by 5% or more and when expenditures and other uses are
exceeding the budget by 5% or more.

Condition: For the year ended December 31, 2024, the actual expenditures and
other uses of the American Rescue Plan Act (ARPA) fund of $2,734,068
exceeded the budgeted expenditures and other uses of $1,871,096, by
$862,972, resulting in an unfavorable variance that exceeded 5%. The
City is not in compliance with LA Revised Statue 39:1311 for the year
ended December 31, 2024.

Cause: The amended budget approved by the City in December 2024 did not
include amended expenditure amounts for the ARPA Fund when actual
expenditures and other uses exceeded budgeted expenditures and other
uses by more than 5%.

Effect: The City is not in compliance with LA Revised Statue 39:1311 for the
year ended December 31, 2024.

Recommendation: The City should ensure budget amendments are adopted during the year
whenever actual expenditures and other uses exceed budgeted
expenditures and other uses by more than 5%.

Management’s response: The City concurs with the finding described above.

9
CITY OF HARAHAN
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED DECEMBER 31, 2024

2024-002 COMPLIANCE AND INTERNAL CONTROL UNDER PUBLIC BID LAW

Criteria: The Louisiana Public Bid Law (RS 38:2211). is the set of laws that
governs contracts for public works and the purchase of materials and
supplies by public entities that meet certain threshold requirements
called the “contract limit” (minimum), set at $60,000 for materials and
supplies and $250,000 for public works. The purpose of the public bid
law is to ensure that public entities receive the best possible price when
using public funds for the procurement of materials and supplies or public
works. The Public Bid Law is a prohibitory law founded on public policy
and therefore public entities must strictly comply with its provisions
absent express exception in law.

Public entities must advertise and award contracts to the lowest

responsible and responsive bidder. This involves a public advertisement
of the project or purchase, followed by a public opening and reading of
the bids.

Condition: For the year ended December 31, 2024, four expenditures totaling
$279,986 were selected for testing. All expenditures were for one project,
with one vendor. The project exceeded the materials and supplies
threshold of $60,000 and public works threshold of $250,000. The City
was unable to provide any written bid support for the project.

Cause: The City did not adhere to compliance with Public Bid Law and its
established procurement policy. The City did not maintain appropriate
records needed to evidence compliance with Public Bid Law
requirements.

Effect: The City may enter into contracts with vendors that do not provide the
best possible price when using public funds for the procurement of
materials and supplies or public works.

Recommendation: The City should strengthen controls to ensure appropriate consideration

to competitors is given and adequate documentation is maintained with
respect to procurement of materials and supplies or public works under
Louisiana Public Bid Law.

Management’s response: The City concurs with the finding described above.

10
CITY OF HARAHAN
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED DECEMBER 31, 2024

Part III – Federal Awards Findings and Questioned Costs Section

2024-003 PROCEDURES OVER PREPARATION OF THE SCHEDULE OF EXPENDITURES OF

FEDERAL AWARDS

Criteria: The City should have systems of internal accounting control which
ensures the schedule of expenditures of federal awards (SEFA) is
presented in accordance with Title I U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance) on a timely
basis.

Universe/Population: Not applicable.

Condition: The City did not perform final reconciliations of the American Rescue Plan
Act (ARPA) and the Federal Emergency Management Agency (FEMA)
expenditures necessary to prepare an accurate and complete SEFA on a
timely basis.

Cause: Due to the complexity of the calculations for recognizing ARPA and FEMA
expenditures on the SEFA, the City provided adjustments to the original
SEFA provided to the auditors.

Effect: The original SEFA required adjustments necessary to correct the

balances reported as federal expenditures for ARPA and FEMA.

Questioned Costs: For the purposes of this finding, there were no questioned costs.

Recommendation: The City should strengthen its controls over the reconciliation of federal
program expenditures and associated calculations to ensure the
information and balances that are accumulated and reported on the
SEFA are an accurate representation of federal expenditures and based
on the reporting requirements provided in the federal award and the
compliance supplement.

Management’s
Response: The City concurs with the observation and will implement procedures in
2025 as recommended.

11
CITY OF HARAHAN
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED DECEMBER 31, 2024

2024-004 COMPLIANCE AND INTERNAL CONTROL OVER PROCUREMENT – ARPA

Assistance Listing: 21.027 Coronavirus State and Local Fiscal Recovery Funds

Criteria: The American Rescue Plan Act (ARPA) provided significant funding to
state, local, and tribal governments to address the public health and
economic impacts of the COVID-19 pandemic. These funds are subject
to the Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (2 CFR Part 200), which include the
specific standards under Public Bid Law.

Condition: For the year ended December 31, 2024, twelve vendors with
expenditures totaling $ 2,179,730 were selected for testing. We noted for
one of the vendors selected for testing, the City was unable to provide
any contract or bid support for the project, which incurred $434,190 of
expenditures during the year.

Universe/Population: The total population for procurement considerations was all vendors of
the American Rescue Plan Act whose transactions for the year ended
December 31, 2024, exceeded the micro-purchase threshold of $10,000.
Payroll and benefit-related transactions were excluded from the
population. Based on these requirements, the population consisted of
twenty-three vendors totaling $2,790,345.

Sample size : A sample of 12 vendors were selected for testing based on those with
total expenditures over $10,000 during the fiscal year.

Cause: The City did not adhere to compliance with Uniform Guidance Federal
regulations per 2 CFR section 200.320 and its established procurement
policy. The City did not maintain appropriate records needed to evidence
compliance with Bid Law requirements.

Effect: The City may enter into contracts with vendors that do not provide the
best possible price when using public funds.

Questioned Costs: For the purposes of this finding, there were no questioned costs.

Recommendation: The City should strengthen controls to ensure appropriate consideration

to competitors is given and adequate documentation is maintained with
respect to procurement in accordance with federal Uniform Guidance
requirements.

Management’s response: The City concurs with the finding described above.

12
CITY OF HARAHAN
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS

Part II – Financial Statement Findings Section

2023-001 BUDGET ACT

Criteria: Louisiana Revised Statue 39.1311 requires governments to amend their

budgets when revenues are falling short of the budget and when
expenditures and other uses are exceeding the budget by more than 5%.

Recommendation: The City should ensure budget amendments are adopted during the year
whenever actual expenditures and other uses exceed budgeted
expenditures and other uses by more than 5%.

Status: Not resolved. See repeat finding 2024-001.

Part III – Federal Awards Findings and Questioned Costs Section

2023-002 REPORTING

United States Department of Treasury – 21.027 Coronavirus State and Local Fiscal Recovery Funds

Criteria: Department of Treasury regulations set the criteria for Performance

Reports. These reports are due quarterly and / or annually from grantees.
Performance Reports must be submitted and reviewed within a certain
timeframe based upon the recipient type. Reports should be supported
by applicable accounting and performance records.

Recommendation: The City should establish a formalized control to monitor timely

submission of Performance Reports.

Status: Resolved.

13
 CITY OF HARAHAN
6437 Jefferson Highway
Harahan, Louisiana 70123
Phone (504) 737-6383
FAX (504) 737-6384
MAYOR CITY COUNCIL
TIM BAUDER JASON D. ASBILL
TOMMY BUDDE
MUNICIPAL CLERK ERIC CHATELAIN
CARRIE HEUSTIS PAUL JOHNSTON
MIKE RICKS

June 30, 2025

Eisner Arnper, LLP

1 Galleria Blvd, Suite 2100
Metairie, Louisiana 70001

Subject: Response to audit findings in accordance with Government Auditing Standards and the
Uniform Guidance

The following are the City of Harahan's (the City) responses to the internal control and compliance findings
observed in the financial statement audit for the year ended December 31, 2024.

2024-01 Budget Act

The City concurs with the observation, which was limited to the ARPA fund, and will implement
procedures in 2025 as recommended.

2024-02 Compliance and Internal Control under Public Bid Law

The City concurs with the observation and will implement procedures in 2025 as recommended.

2024-03 Procedures over Prenaration of the Schedule of expenditures of Federal Awards

The City concurs with the observation and will implement procedures in 2025 as recomrnended.

2024-04 Compliance and Internal Control over Procurement

The City concurs with the observation and will implement procedures in 2025 as recommended.

Please let us know if you need additional information. The Mayor, Tim Baudier, is responsible for the
corrective action plan on these items and the anticipated completion date is December 3I, 2025.

Respectfull

Tim Baudier
Mayor
 CITY OF HARAHAN

REPORT ON STATEWIDE
AGREED-UPON PROCEDURES ON COMPLIANCE
AND CONTROL AREAS

FOR THE YEAR ENDED DECEMBER 31, 2024

CITY OF HARAHAN

CONTENTS

Page

Independent Accountants’ Report on Applying Agreed-Upon Procedures 1

Schedule A: Agreed-Upon Procedures Performed and Associated Findings 2 – 13

Schedule B: Management’s Response and Corrective Action Plan 14

 EisnerAmper LLP
8550 United Plaza Blvd.
Suite 1001
Baton Rouge, LA 70809
T 225.922.4600
F 225.922.4611
www.eisneramper.com

INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES

To the Council Members of the City of Harahan and the Louisiana Legislative Auditor

We have performed the procedures enumerated in Schedule A on the control and compliance (C/C) areas
identified in the Louisiana Legislative Auditor's (LLA's) Statewide Agreed-Upon Procedures (SAUPs) of the
City of Harahan (the City) for the fiscal period January 1, 2024 through December 31, 2024. The City's
management is responsible for those C/C areas identified in the SAUPs.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the
intended purpose of performing specified procedures on the C/C areas identified in the LLA's SAUPs for
the fiscal period January 1, 2024 through December 31, 2024. Additionally, the LLA has agreed to and
acknowledged that the procedures performed are appropriate for its purposes. This report may not be
suitable for any other purpose. The procedures performed may not address all the items of interest to a
user of this report and may not meet the needs of all users of this report and, as such, users are responsible
for determining whether the procedures performed are appropriate for their purposes.

The procedures we performed, and the associated findings are summarized in the attached Schedule A,
which is an integral part of this report.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our
engagement in accordance with attestation standards established by the AICPA and the standards
applicable to attestation engagements contained in Government Auditing Standards issued by the
Comptroller General of the United States. We were not engaged to and did not conduct an examination or
review, the objective of which would be the expression of an opinion or conclusion, respectively, on those
C/C areas identified in the SAUPs of the City for the fiscal period January 1, 2024 through
December 31, 2024. Accordingly, we do not express such an opinion or conclusion. Had we performed
additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements related to our agreed-upon procedures engagement.

The purpose of this report is intended solely to describe the scope of testing performed on those C/C areas
identified in the SAUPs, and the result of that testing, and not to provide an opinion on control or compliance.
Accordingly, this report is not suitable for any other purpose. Under Louisiana Revised Statute 24:513, this
report is distributed by the LLA as a public document.

EISNERAMPER LLP
Baton Rouge, Louisiana
June 30, 2025

“EisnerAmper” is the brand name under which EisnerAmper LLP and Eisner Advisory Group LLC and its subsidiary entities provide professional services.
EisnerAmper LLP and Eisner Advisory Group LLC are independently owned firms that practice in an alternative practice structure in accordance with the AICPA
Code of Professional Conduct and applicable law, regulations and professional standards. EisnerAmper LLP is a licensed CPA firm that provides attest services,
and Eisner Advisory Group LLC and its subsidiary entities provide tax and business consulting services. Eisner Advisory Group LLC and its subsidiary entities are
not licensed CPA firms.
CITY OF HARAHAN

AGREED-UPON PROCEDURES PERFORMED AND ASSOCIATED FINDINGS

DECEMBER 31, 2024

Schedule A

1) Written Policies and Procedures

A. Obtain and inspect the entity’s written policies and procedures and observe whether they address each
of the following categories and subcategories (if applicable to public funds and the entity’s operations):

i. Budgeting, including preparing, adopting, monitoring, and amending the budget.

Exception noted. The City’s written policies and procedures over budgeting do not include
amending the budget. No other exceptions were found as a result of this procedure.

ii. Purchasing, including (1) how purchases are initiated; (2) how vendors are added to the vendor
list; (3) the preparation and approval process of purchase requisitions and purchase orders; (4)
controls to ensure compliance with the Public Bid Law; and (5) documentation required to be
maintained for all bids and price quotes.

No exception noted.

iii. Disbursements, including processing, reviewing, and approving

No exception noted.

iv. Receipts/Collections, including receiving, recording, and preparing deposits. Also, policies and
procedures should include management’s actions to determine the completeness of all
collections for each type of revenue or agency fund additions (e.g., periodic confirmation with
outside parties, reconciliation to utility billing after cutoff procedures, reconciliation of traffic ticket
number sequences, agency fund forfeiture monies confirmation).

No exception noted.

v. Payroll/Personnel, including (1) payroll processing, (2) reviewing and approving time and
attendance records, including leave and overtime worked, and (3) approval process for employee
rates of pay or approval and maintenance of pay rate schedules.

No exception noted.

vi. Contracting, including (1) types of services requiring written contracts, (2) standard terms and
conditions, (3) legal review, (4) approval process, and (5) monitoring process.

Exception noted. The City’s written policies and procedures over contracting do not
include standard terms and conditions of contracts. No other exceptions were found as a
result of this procedure.

vii. Travel and Expense Reimbursement, including (1) allowable expenses, (2) dollar thresholds
by category of expense, (3) documentation requirements, and (4) required approvers.

No exception noted.

2
CITY OF HARAHAN

AGREED-UPON PROCEDURES PERFORMED AND ASSOCIATED FINDINGS

DECEMBER 31, 2024

Schedule A

viii. Credit Cards (and debit cards, fuel cards, purchase cards, if applicable), including (1) how
cards are to be controlled, (2) allowable business uses, (3) documentation requirements, (4)
required approvers of statements, and (5) monitoring card usage (e.g., determining the
reasonableness of fuel card purchases).

No exception noted.

ix. Ethics, including (1) the prohibitions as defined in Louisiana Revised Statute (R.S.) 42:1111-
1121, (2) actions to be taken if an ethics violation takes place, (3) system to monitor possible
ethics violations, and (4) a requirement that documentation is maintained to demonstrate that all
employees and officials were notified of any changes to the entity’s ethics policy.

No exception noted.

x. Debt Service, including (1) debt issuance approval, (2) continuing disclosure/EMMA reporting
requirements, (3) debt reserve requirements, and (4) debt service requirements.

No exception noted.

xi. Information Technology Disaster Recovery/Business Continuity, including (1) identification

of critical data and frequency of data backups, (2) storage of backups in a separate physical
location isolated from the network, (3) periodic testing/verification that backups can be restored,
(4) use of antivirus software on all systems, (5) timely application of all available system and
software patches/updates, and (6) identification of personnel, processes, and tools needed to
recover operations after a critical event.

No exception noted.

xii. Prevention of Sexual Harassment, including R.S. 42:342-344 requirements for (1) agency
responsibilities and prohibitions, (2) annual employee training, and (3) annual reporting.

Exception noted. The City’s written policies and procedures over prevention of sexual
harassment do not include annual reporting. No other exceptions were found as a result
of this procedure.

2) Board or Finance Committee

Procedures were not performed in the current year (Year 2) in accordance with LLA guidelines.

A. Obtain and inspect the board/finance committee minutes for the fiscal period, as well as the board’s
enabling legislation, charter, bylaws, or equivalent document in effect during the fiscal period, and:

i. Observe whether the board/finance committee met with a quorum at least monthly, or on a
frequency in accordance with the board’s enabling legislation, charter, bylaws, or other equivalent
document.

3
CITY OF HARAHAN

AGREED-UPON PROCEDURES PERFORMED AND ASSOCIATED FINDINGS

DECEMBER 31, 2024

Schedule A

ii. For those entities reporting on the governmental accounting model, observe whether the minutes
referenced or included monthly budget-to-actual comparisons on the general fund, quarterly
budget-to-actual comparisons, at a minimum, on all proprietary funds, and semi-annual budget-
to-actual comparisons, at a minimum, on all special revenue funds. Alternatively, for those entities
reporting on the not-for-profit accounting model, observe that the minutes referenced or included
financial activity relating to public funds if those public funds comprised more than 10% of the
entity’s collections during the fiscal period.

iii. For governmental entities, obtain the prior year audit report and observe the unassigned fund
balance in the general fund. If the general fund had a negative ending unassigned fund balance
in the prior year audit report, observe that the minutes for at least one meeting during the fiscal
period referenced or included a formal plan to eliminate the negative unassigned fund balance in
the general fund.

iv. Observe whether the board/finance committee received written updates of the progress of
resolving audit finding(s), according to management’s corrective action plan at each meeting until
the findings are considered fully resolved.

3) Bank Reconciliations

A. Obtain a listing of entity bank accounts for the fiscal period from management and management’s
representation that the listing is complete. Ask management to identify the entity’s main operating
account. Select the entity’s main operating account and randomly select 4 additional accounts (or all
accounts if less than 5). Randomly select one month from the fiscal period, obtain and inspect the
corresponding bank statement and reconciliation for each selected account, and observe that:

A listing of bank accounts was provided and included a total of 13 bank accounts. Management
identified the City’s main operating account. No exceptions were noted as a result of performing
this procedure.

From the listing provided, we selected 5 bank accounts (1 main operating and 4 randomly) and
obtained the bank reconciliations for the month ending July 31, 2024, resulting in 5 bank
reconciliations obtained and subjected to the below procedures.

i. Bank reconciliations include evidence that they were prepared within 2 months of the related
statement closing date (e.g., initialed and dated, electronically logged);

No exception noted.

ii. Bank reconciliations include written evidence that a member of management or a board member
who does not handle cash, post ledgers, or issue checks has reviewed each bank reconciliation
within 1 month of the date the reconciliation was prepared (e.g., initialed and dated, electronically
logged); and

Exception noted. Of the 5 bank accounts selected, 4 bank reconciliations were not
reviewed within 1 month of the date the reconciliation was prepared.

iii. Management has documentation reflecting it has researched reconciling items that have been
outstanding for more than 12 months from the statement closing date, if applicable.

Exception noted. Of the 5 bank accounts selected, 1 bank reconciliation had reconciling
items that have been outstanding for more than 12 months from the statement closing
date. There was no documentation evidencing management has researched these
reconciling items.

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CITY OF HARAHAN

AGREED-UPON PROCEDURES PERFORMED AND ASSOCIATED FINDINGS

DECEMBER 31, 2024

Schedule A

4) Collections (excluding electronic funds transfers)

A. Obtain a listing of deposit sites for the fiscal period where deposits for cash/checks/money orders (cash)
are prepared and management’s representation that the listing is complete. Randomly select 5 deposit
sites (or all deposit sites if less than 5).

A listing of deposit sites was provided and included a total of one deposit site. No exceptions
were noted as a result of performing this procedure.

From the listing provided, we selected the 1 deposit site and performed the procedures below.

B. For each deposit site selected, obtain a listing of collection locations and management’s representation
that the listing is complete. Randomly select one collection location for each deposit site (e.g. 5
collection locations for 5 deposit sites), obtain and inspect written policies and procedures relating to
employee job duties (if there are no written policies or procedures, then inquire of employees about
their job duties) at each collection location, and observe that job duties are properly segregated at each
collection location such that:

A listing of collection locations for the deposit site selected in procedure #4A was provided and
included a total of 4 collection locations. No exceptions were noted as a result of performing
this procedure.

From the listing provided, we randomly selected 1 collection location for the 1 deposit site.
Review of the City’s written policies and procedures or inquiry with employee(s) regarding job
duties was performed in order to perform the procedures below.

i. Employees responsible for cash collections do not share cash drawers/registers;

No exception noted.

ii. Each employee responsible for collecting cash is not also responsible for preparing/making bank
deposits, unless another employee/official is responsible for reconciling collection documentation
(e.g. pre-numbered receipts) to the deposit;

No exception noted.

iii. Each employee responsible for collecting cash is not also responsible for posting collection
entries to the general ledger or subsidiary ledgers, unless another employee/official is
responsible for reconciling ledger postings to each other and to the deposit; and

No exception noted.

iv. The employee(s) responsible for reconciling cash collections to the general ledger and/or
subsidiary ledgers, by revenue source and/or custodial fund additions, is (are) not also
responsible for collecting cash, unless another employee verifies the reconciliation.

No exception noted.

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CITY OF HARAHAN

AGREED-UPON PROCEDURES PERFORMED AND ASSOCIATED FINDINGS

DECEMBER 31, 2024

Schedule A

C. Obtain from management a copy of the bond or insurance policy for theft covering all employees who
have access to cash. Observe that the bond or insurance policy for theft was in force during the fiscal
period.

No exception noted.

D. Randomly select two deposit dates for each of the 5 bank accounts selected for Bank Reconciliations
procedure #3A (select the next deposit date chronologically if no deposits were made on the dates
randomly selected and randomly select a deposit if multiple deposits are made on the same day).
Alternatively, the practitioner may use a source document other than bank statements when selecting
the deposit dates for testing, such as a cash collection log, daily revenue report, receipt book, etc.
Obtain supporting documentation for each of the 10 deposits and:

We randomly selected 2 deposit dates for each of the 5 bank accounts selected in procedure
#3A. We obtained supporting documentation for each of the deposits and performed the
procedures below. This resulted in a total of 2 deposits selected for testing, as some accounts
did not have any deposits during the fiscal year.

i. Observe that receipts are sequentially pre-numbered.

No exception noted.

ii. Trace sequentially pre-numbered receipts, system reports, and other related collection
documentation to the deposit slip.

No exception noted.

iii. Trace the deposit slip total to the actual deposit per the bank statement.

No exception noted.

iv. Observe that the deposit was made within one business day of receipt at the collection location
(within one week if the depository is more than 10 miles from the collection location or the deposit
is less than $100 and the cash is stored securely in a locked safe or drawer).

No exception noted.

v. Trace the actual deposit per the bank statement to the general ledger.

No exception noted.

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CITY OF HARAHAN

AGREED-UPON PROCEDURES PERFORMED AND ASSOCIATED FINDINGS

DECEMBER 31, 2024

Schedule A

5) Non-payroll Disbursements (excluding card purchases, travel reimbursements, and petty cash
purchases)

Procedures were not performed in the current year (Year 2) in accordance with LLA guidelines.

A. Obtain a listing of locations that process payments for the fiscal period and management’s
representation that the listing is complete. Randomly select 5 locations (or all locations if less than 5).

B. For each location selected under #5A above, obtain a listing of those employees involved with non-
payroll purchasing and payment functions. Obtain written policies and procedures relating to employee
job duties (if the agency has no written policies and procedures, then inquire of employees about their
job duties), and observe that job duties are properly segregated such that:

i. At least two employees are involved in initiating a purchase request, approving a purchase, and
placing an order or making the purchase;

ii. At least two employees are involved in processing and approving payments to vendors;

iii. The employee responsible for processing payments is prohibited from adding/modifying vendor
files, unless another employee is responsible for periodically reviewing changes to vendor files;

iv. Either the employee/official responsible for signing checks mails the payment or gives the signed
checks to an employee to mail who is not responsible for processing payments; and

v. Only employees/officials authorized to sign checks approve the electronic disbursement (release)
of funds, whether through automated clearinghouse (ACH), electronic funds transfer (EFT), wire
transfer, or some other electronic means.

C. For each location selected under #5A above, obtain the entity’s non-payroll disbursement transaction
population (excluding cards and travel reimbursements) and obtain management’s representation that
the population is complete. Randomly select 5 disbursements for each location, obtain supporting
documentation for each transaction and

i. Observe whether the disbursement, whether by paper or electronic means, matched the related
original itemized invoice, and that supporting documentation indicates that deliverables included
on the invoice were received by the entity, and

ii. Observe whether the disbursement documentation included evidence (e.g., initial/date, electronic
logging) of segregation of duties tested under procedure #5B above, as applicable.

D. Using the entity’s main operating account and the month selected in Bank Reconciliations procedure
#3A, randomly select 5 non-payroll-related electronic disbursements (or all electronic disbursements if
less than 5) and observe that each electronic disbursement was (a) approved by only those persons
authorized to disburse funds (e.g., sign checks) per the entity’s policy, and (b) approved by the required
number of authorized signers per the entity’s policy. Note: If no electronic payments were made from
the main operating account during the month selected the practitioner should select an alternative
month and/or account for testing that does include electronic disbursements.

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CITY OF HARAHAN

AGREED-UPON PROCEDURES PERFORMED AND ASSOCIATED FINDINGS

DECEMBER 31, 2024

Schedule A

6) Credit Cards/Debit Cards/Fuel Cards/Purchase Cards (Cards)

A. Obtain from management a listing of all active credit cards, bank debit cards, fuel cards, and purchase
cards (cards) for the fiscal period, including the card numbers and the names of the persons who
maintained possession of the cards. Obtain management’s representation that the listing is complete.

A listing of all active credit cards, bank debit cards, fuel cards, and purchase cards (cards) for
the fiscal period was provided. No exceptions were found as a result of performing this
procedure.

B. Using the listing prepared by management, randomly select 5 cards (or all cards if less than 5) that
were used during the fiscal period. Randomly select one monthly statement or combined statement for
each card (for a debit card, randomly select one monthly bank statement). Obtain supporting
documentation, and

From the listing provided, we randomly selected 5 cards (4 credit cards and 1 fuel card) used in
the fiscal period. We randomly selected one monthly statement for each of the 5 cards selected
and performed the procedures noted below.

i. Observe whether there is evidence that the monthly statement or combined statement and
supporting documentation (e.g., original receipts for credit/debit card purchases, exception
reports for excessive fuel card usage) were reviewed and approved, in writing (or electronically
approved) by someone other than the authorized card holder (those instances requiring such
approval that may constrain the legal authority of certain public officials, such as the mayor of a
Lawrason Act municipality, should not be reported; and

No exception noted.

ii. Observe that finance charges and late fees were not assessed on the selected statements.

No exception noted.

C. Using the monthly statements or combined statements selected under procedure #6B above, excluding
fuel cards, randomly select 10 transactions (or all transactions if less than 10) from each statement,
and obtain supporting documentation for the transactions (e.g., each card should have 10 transactions
subject to inspection). For each transaction, observe that it is supported by (1) an original itemized
receipt that identifies precisely what was purchased, (2) written documentation of the business/public
purpose, and (3) documentation of the individuals participating in meals (for meal charges only). For
missing receipts, the practitioner should describe the nature of the transaction and observe whether
management had a compensating control to address missing receipts, such as a “missing receipt
statement” that is subject to increased scrutiny.

We randomly selected 10 transactions (or all transactions if less than 10) for 4 of the 5 cards
selected in procedure #6B (1 fuel card excluded), for a total of 24 transactions selected for
testing, and performed the specified procedures.

No exception noted.

8
CITY OF HARAHAN

AGREED-UPON PROCEDURES PERFORMED AND ASSOCIATED FINDINGS

DECEMBER 31, 2024

Schedule A

7) Travel and Travel-Related Expense Reimbursements (excluding card transactions)

Procedures were not performed in the current year (Year 2) in accordance with LLA guidelines.

A. Obtain from management a listing of all travel and travel-related expense reimbursements during the
fiscal period and management’s representation that the listing or general ledger is complete. Randomly
select 5 reimbursements, and obtain the related expense reimbursement forms/prepaid expense
documentation of each selected reimbursement, as well as the supporting documentation. For each of
the 5 reimbursements selected:

i. If reimbursed using a per diem, observe that the approved reimbursement rate is no more than
those rates established either by the State of Louisiana or the U.S. General Services Administration
(www.gsa.gov);

ii. If reimbursed using actual costs, observe that the reimbursement is supported by an original
itemized receipt that identifies precisely what was purchased;

iii. Observe that each reimbursement is supported by documentation of the business/public purpose
(for meal charges, observe that the documentation includes the names of those individuals
participating) and other documentation required by “Written Policies and Procedures”, procedure
#1A(vii); and

iv. Observe that each reimbursement was reviewed and approved, in writing, by someone other than
the person receiving reimbursement.

8) Contracts

Procedures were not performed in the current year (Year 2) in accordance with LLA guidelines.

A. Obtain from management a listing of all agreements/contracts for professional services, materials and
supplies, leases, and construction activities that were initiated or renewed during the fiscal period.
Alternatively, the practitioner may use an equivalent selection source, such as an active vendor list.
Obtain management’s representation that the listing is complete. Randomly select 5 contracts (or all
contracts if less than 5) from the listing, excluding the practitioner’s contract, and

i. Observe whether the contract was bid in accordance with the Louisiana Public Bid Law (e.g.,
solicited quotes or bids, advertised), if required by law;

ii. Observe whether the contract was approved by the governing body/board, if required by policy
or law (e.g. Lawrason Act, Home Rule Charter);

iii. If the contract was amended (e.g., change order), observe that the original contract terms
provided for such an amendment and that amendments were made in compliance with the
contract terms (e.g., if approval is required for any amendment, the documented approval); and

iv. Randomly select one payment from the fiscal period for each of the 5 contracts, obtain the
supporting invoice, agree the invoice to the contract terms, and observe that the invoice and
related payment agreed to the terms and conditions of the contract.

9
CITY OF HARAHAN

AGREED-UPON PROCEDURES PERFORMED AND ASSOCIATED FINDINGS

DECEMBER 31, 2024

Schedule A

9) Payroll and Personnel

Procedures were not performed in the current year (Year 2) in accordance with LLA guidelines.

A. Obtain a listing of employees/elected officials employed during the fiscal period and management’s
representation that the listing is complete. Randomly select 5 employees/officials, obtain related paid
salaries and personnel files, and agree paid salaries to authorized salaries/pay rates in the personnel
files.

B. Randomly select one pay period during the fiscal period. For the 5 employees/officials selected under
procedure #9A above, obtain attendance records and leave documentation for the pay period, and

i. Observe that all selected employees/officials documented their daily attendance and leave (e.g.,
vacation, sick, compensatory);

ii. Observe whether supervisors approved the attendance and leave of the selected employees or
officials;

iii. Observe that any leave accrued or taken during the pay period is reflected in the entity’s
cumulative leave records; and

iv. Observe the rate paid to the employees or officials agrees to the authorized salary/pay rate found
within the personnel file.

C. Obtain a listing of those employees or officials that received termination payments during the fiscal
period and management’s representation that the list is complete. Randomly select two employees or
officials and obtain related documentation of the hours and pay rates used in management’s termination
payment calculations and the entity’s policy on termination payments. Agree the hours to the
employee’s or official’s cumulative leave records, agree the pay rates to the employee’s or official’s
authorized pay rates in the employee’s or official’s personnel files, and agree the termination payment
to entity policy.

D. Obtain management’s representation that employer and employee portions of third-party payroll related
amounts (e.g., payroll taxes, retirement contributions, health insurance premiums, garnishments,
workers’ compensation premiums, etc.) have been paid, and any associated forms have been filed, by
required deadlines.

10) Ethics

A. Using the 5 randomly selected employees/officials from procedure “Payroll and Personnel” procedure
#9A, above obtain ethics documentation from management, and

i. Observe whether the documentation demonstrates that each employee/official completed one
hour of ethics training during the calendar year as required by R.S. 42:1170; and

No exception noted.

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CITY OF HARAHAN

AGREED-UPON PROCEDURES PERFORMED AND ASSOCIATED FINDINGS

DECEMBER 31, 2024

Schedule A

ii. Observe whether the entity maintains documentation which demonstrates that each employee
and official were notified of any changes to the entity’s ethics policy during the fiscal period, as
applicable.

The City did not have any changes to the ethics policy during the fiscal year, thus this
step is not applicable.

B. Inquire and/or observe whether the agency has appointed an ethics designee as required by R.S.
42:1170.

No exception noted.

11) Debt Service

Procedures were not performed in the current year (Year 2) in accordance with LLA guidelines.

A. Obtain a listing of bonds/notes issued during the fiscal period and management’s representation that
the listing is complete. Select all bonds/notes on the listing, obtain supporting documentation, and
observe that State Bond Commission approval was obtained for each bond/note issued as required by
Article VII, Section 8 of the Louisiana Constitution.

B. Obtain a listing of bonds/notes outstanding at the end of the fiscal period and management’s
representation that the listing is complete. Randomly select one bond/note, inspect debt covenants,
obtain supporting documentation for the reserve balance and payments, and agree actual reserve
balances and payments to those required by debt covenants (including contingency funds, short-lived
asset funds, or other funds required by the debt covenants).

12) Fraud Notice

Procedures were not performed in the current year (Year 2) in accordance with LLA guidelines.

A. Obtain a listing of misappropriations of public funds and assets during the fiscal period and
management’s representation that the listing is complete. Select all misappropriations on the listing,
obtain supporting documentation, and observe that the entity reported the misappropriation(s) to the
legislative auditor and the district attorney of the parish in which the entity is domiciled as required by
R.S. 24:523.

B. Observe that the entity has posted on its premises and website, the notice required by R.S. 24:523.1
concerning the reporting of misappropriation, fraud, waste, or abuse of public funds.

11
CITY OF HARAHAN

AGREED-UPON PROCEDURES PERFORMED AND ASSOCIATED FINDINGS

DECEMBER 31, 2024

Schedule A

13) Information Technology Disaster Recovery/Business Continuity

Procedures were not performed in the current year (Year 2) in accordance with LLA guidelines.

A. Perform the following procedures:

i. Obtain and inspect the entity’s most recent documentation that it has backed up its critical data
(if there is no written documentation, then inquire of personnel responsible for backing up critical
data) and observe evidence that such backup (a) occurred within the past week, (b) was not
stored on the government’s local server or network, and (c) was encrypted.

ii. Obtain and inspect the entity’s most recent documentation that it has tested/verified that its
backups can be restored (if there is no written documentation, then inquire of personnel
responsible for testing/verifying backup restoration) and observe evidence that the
test/verification was successfully performed within the past 3 months.

iii. Obtain a listing of the entity’s computers currently in use and their related locations, and
management’s representation that the listing is complete. Randomly select 5 computers and
observe while management demonstrates that the selected computers have current and active
antivirus software and that the operating system and accounting system software in use are
currently supported by the vendor.

B. Randomly select 5 terminated employees (or all terminated employees if less than 5) using the list of
terminated employees obtained in Payroll and Personnel procedure #9C. Observe evidenced that the
selected terminated employees have been removed or disabled from the network.

C. Using the 5 randomly selected employees/officials from Payroll and Personnel procedure #9A, obtain
cybersecurity training documentation from management, and observe that the documentation
demonstrates that the following employees/officials with access to the agency’s information technology
assets have completed cybersecurity training as required by R.S. 42:1267. The requirements are as
follows:

 Hired before June 9, 2020 - completed the training; and

 Hired on or after June 9, 2020 - completed the training within 30 days of initial service or
employment.

14) Prevention of Sexual Harassment

A. Using the 5 randomly selected employees/officials from “Payroll and Personnel” procedure #9A, obtain
sexual harassment training documentation from management, and observe that the documentation
demonstrates each employee/official completed at least one hour of sexual harassment training during
the calendar year as required by R.S. 42:343.

No exception noted.

B. Observe that the entity has posted its sexual harassment policy and complaint procedure on its website
(or in a conspicuous location on the entity’s premises if the entity does not have a website).

No exception noted.

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CITY OF HARAHAN

AGREED-UPON PROCEDURES PERFORMED AND ASSOCIATED FINDINGS

DECEMBER 31, 2024

Schedule A

C. Obtain the entity’s annual sexual harassment report for the current fiscal period, observe that the report
was dated on or before February 1, and observe that the report includes the applicable requirements
of R.S. 42:344:

i. Number and percentage of public servants in the agency who have completed the training
requirements;

No exception noted.

ii. Number of sexual harassment complaints received by the agency;

No exception noted.
iii. Number of complaints which resulted in a finding that sexual harassment occurred;

No exception noted.

iv. Number of complaints in which the finding of sexual harassment resulted in discipline or
corrective action; and

No exception noted.

v. Amount of time it took to resolve each complaint.

No exception noted.

13
CITY OF HARAHAN

MANAGEMENT’S RESPONSE AND CORRECTIVE ACTION PLAN

DECEMBER 31, 2024

Schedule B

Management has reviewed and will address the exceptions noted above. See attached response.

14
 CITY OF HARAHAN
6437 Jefferson Highway
Harahan, Louisiana 70123
Phone (504) 737-6383
FAX (504) 737-6384
MAYOR CITY COUNCIL
TIM BAUDIER
JASON D. ASBILL
TOMMY BUDDE
MUNICIPAL CLERK ERIC CHATELAIN
CARRIE HEUSTIS PAUL JOHNSTON
MIKE RICKS

June 24, 2025

Eisner Amper, LLP

1 Galleria Blvd, Suite 2100
Metairie, Louisiana 70001

Subject: Management's Response to the Statewide Agreed upon Procedures

The following are the City of Harahan's (the City) responses to the items identified in the Statewide
Agreed-Upon Procedures Report for the year ended December 31, 2024.

1. Written Policies and Procedures: The City concurs with the.observation and will adopt
additional language to the policies prior to December 31, 2025.

2. Bank reconciliations: The City concurs with the observation. The City will implement
procedures in 2025 to ensure that bank reconciliations are reviewed within one month of
the preparation and that outstanding items in excess 12 months will be researched.

Please let us know if you need additional information.