JUh' 6 2013 Pl.Jf3l.C SERVICE

COMMISSION

€2-ZZ

LZ

02

61

8 1-0 1

6-8

L

9

9-6

Z- 1

39Vd

sasuadxg Gu!$e~ado 40 ainpayq

yoday s,Joypny Juapuadapul

SlNXN03

E

SLLN3EI;1I3J4V.LS WI3NINI6 3HL 60 M3IAX3A.0

SLH3ITH3IH WIDNVNId

SISAWNV (INV NOISSDDSSI(I SLLN~~N~~VNVW:

s

33NVH3 L3SSV 'IVLIdV3

088'09O'E$ E9L'P86 $ LZ1'990'Z $ 88L'E96'Z$ E96'6P6 $ 9Z8'E10iZ$

P99'8 1 ZZO'E ZEG'9 1 9 18'L 1 68L'Z 910'9 1

ZEZ'ZOL'Z ZOO'Z'26 OEZ'OLL'L Z16'669'Z Z08'€68 0 11'90L' 1 (99Z'Z9Gi 1) (LZ6'ElO' 1) (8'2'2'8S13) (8L'2'%9' 1) (LZ 1'7190' 1) ( LSZ'EO9)

LGP'P9Z'P 6Z6'9P6' 1 899'80'2'Z OGZ'99Z'P 6Z6'9.t.6' 1 19'2'60E'Z

P60'0'2'2 6ZL'6P 99€'08Z 190'9.b.S ZLE'E9 689'Z6Z 8ZP'ZZ 1 6GP'SZ 696'96 8LS'LZ 1 08P'9Z 868'00 1

- - EZ8'P EZ8'P 6E0'9 6'20'9 96 1 96 1 699 6139 P6Z'ZZ L9Z'P L'20'8 1 9EE'PZ LPP'P 688'6 1 PGE'081 $ '21O'OZ $ LPE'091 $ 6PL'881 $ 9PP'ZZ $ 90'2'991 $

-

PZ1'EZL'Z E 16'L 16 1 LZ'9OZ'L OSt7'9SO'Z 6P8'988 109'69 1' 1 6E8' 16 1 Z98'EZ L86'L9 1 ELL'ZOZ L9P'9Z 90E'9L 1 8ZP'ZZ 1 69P'SZ 696'96 8LE'LZ 1 08P'9Z 868'00 1 PaP!Jlsatl LG8'808' 1 209'898 99Z'OP6 66Z'9ZL' 1 Z06'EE8 L6E'Z68 wa paieiatl 10 PN

'slassv lel!de3 u! palsa~ul :siassv laN

OOP'998 OOP'S9 OOO'Z08 006'PP8 006'69 OOO'S8L spuoq yawdolaAaa IeJntf :E a$oN - sa!$!l!qe!y w~al-6~07

99s'z9 OPP'E 916'8s 8EP'Z9 PLZ'E PZZ'69 99L PL 1% 699 61 099 9L6' 1 1 9L6' 1 1 ELL'11 ELL'11 8L9' 1 L9E 11E'L 886' 1 ZLZ 9LL' 1 OOE'EZ OLS'Z OEL'OZ 9ZL'EZ 099'1 9L0'1Z

000'91 $ - $ 000'91 $ OOO'LL $ - $ 000'LL $

-

8E9'8 68P 6P1'8 ZPP'L EEE 60 1'L

PZ1'EZG'Z$ €16'1.16 $ 1 CZ"SOZ'1 $ 09P'990'Z$ 6P8'988 $ 109'691'1$ JeaA 40 pug 'siassw iaN

Z 1L'LL 1'1 PL8'LP6 8E8'6ZZ'l PZL'EZL'Z E16'L16 1 lZ'90Z' 1 JeaA 40 6u!uu!6aa 'siassw ia~

- suo!inq!Jiuo3 leyde3 leiol OSP'P 09P'P 098 OOE 099 09P'P 09P'P 098 OOE 099 saaj del

:suo!$nq!J$uo=) leyde3

SEL'Z1S 8ES'PS 86 1'897, 9PP'9ZE PLZ'SS ZL 1' 1 LZ 802'9 6t.8 6SE'Fi 698'9 9 16 K6'9 8€€'101 LZL'19 699'9 P6Z'9 889'8 EPP'8P 899' 1 LOO'P8

LSZ'8E 999' 1

P6Z'G 889'8

- -

L80'€9 991'09 699'9

- EW'8P 899' 1 LOO'P8

E1L'EOl P89'19 692'9 9L6'P 6LZ'6 P89'6P OE9 Z96'P8

OOZ'8E P06' 1

9L6'P 6LZ'6

- E L6'P9 08L'69 69Z'S

-

P89'6P 069 Z96'98

998'OLZ 9L0'8Z 06L'ZPZ OZ8'9LZ OPZ'LZ 089'8PZ 9L0'8Z 9L0'8Z - OPZ'LZ OPZ'LZ

OP1'E OPL'E OZB'P OZ6'P 099'6SZ $ - $ O99'6EZ $ 099'6PZ $ - $ 099'EPZ $

1 1QZ ZLOZ

Z8L'ZOE $ ZLP'GP $ OCE'L9Z $ LZ1'91E $ 9Z6'8P $ ZOZ'L9Z $ JeaA 40 PU3 'sJualeA!nbz use3 pue use3

POL'ZPZ LOO'EQ L69'66 1 Z8L'ZOS ZLP'SP 0 1E'LGZ JeaA 40 6u!uu!6ag 'sJuajen!nb3 yse3 pue use=>

8L0'09 99P'Z E 19'LE; 9PS'S 1 EWE 268'6 use=) u! (aseanaa) aseaJaq JaN

ZL1'11 08 Z60' 1 1 881'01 zz 991'01 -- - - - 80P'6 80P'6 808'6 809'6

P9L' 1 08 P89' 1 08L zz 89L

09P'P OSP'P 098 OOE 099

1

01

11

616'SP6'1$ - $- $ 6Z6'1;P6'1$ 686' 1P LPE'El ZI 1'1 LSL'9LL 1390'8E 13913'oz 9EZ19E€ EGE'88 1 69L'L. 1P 9L9'1Ei LES'L

68E'LP LPS'E 1 I1 1'z LGL'9LL 9G0'8E Ei91;'oz 9EZ'9E€ EGS'88 1 69L'L 1P 9L13'I.G LE'L

- 19€'60E'Z E6L 8913'80E'Z - EPG'E E66'S OW

GEO'Z6 E8E'8 986'EZ S08'6 68Z' 1 1 L11'8L1 9EL'LE P66'LG8 9ZE'66 1139'0Z8 8 1L'E 11 8Z€'8

SEO'Z6 €8E'8 986'SZ Z9P'E 68Z' 11 L11'8L1 9SL'LE P66'LS8 9ZE'66 1G9'0Z8 81L'Ell 8ZE'8

LZC'Z90'1$ - $ OOZ'8E $ LZ6'610'1$ LLL'6E - 980' 1 989'8s 9EZ'E 1 Z80'Z LEE'6 1P E89'9E P80'L 1 ZL 1'8L 1 OSL'66 PL6'LLZ L08'OZ LEE'L

8E 8 9s9'9 1 LL Z6P' 1 SZL'S LSL'E EiSE'8 ZE0'1 98

$- $

861'E1 PLO'Z 96L'EOP 909'9E Z69'9 1 LPP'lL1 €86'96 6 L9'60Z GLL'6 1 19Z'L

- $

LSZ'E09 $ - $ E16'P9 $ 8EE'8E9 $ - 1Z1'E 8LE'E LSZ - 119'6 L90'L 6L9'0 1 - ZL8'9 6EE'L L9P - SZE'L 8ZO' 1 1 EOL'E - 9PZ'E LPE'E 96 - Z6L'9 8 10'L 9zz - 696'E LSL'09 069'P9 - PL8'9 1 6Z9'L 1 99L

OLZ'9ZZ - 091'LL 0 1 L'80Z LP9'LE - 668'P 1 8P9'ZZ 908'PL 1 - ELP'91 E6E'86

- 99S'I 099'69 9z0'99

009'PP $ - $ 000'1 $ 009'EP $

El

asuadxq jqaa paz!uoweun 3

000'sEC $ (000's) OOO'OP1

000'8 %s ozoz 000'1 1 %s 8ZOZ 000'8 %s 6 1OZ 000' 1 1 %I; LZOZ 000'L %9 8 1OZ 000'1 c %9 9zoz 000'L %s L 1oz 000'0 1 %E; 9zoz 000'L %s 91oz 000'0 1 %s PZOZ 000'9 %9 5; coz 000'6 %9 EZOZ 000'9 %9 PLOZ 000'6 %9 zzoz 000'9 %G E coz 000'8 %s czoz 000's $ %s zcoz

junowv awl ' 1 henuey Junowy aleu '1 henuey jsa~ajui ajea AyJnjeyy pa~ajui qea Aj!-lnjeyy

OOO'L99 $ (000'1 1) 000'8L9

000'8Z 000'81 000'LZ 000'9z 000'9z 00o'z;z OOO'PZ OOO'PZ 000'EZ ooo'zz ooo'zz 000' 1 I 000'1z ooo'oz ooo'oz 000'6 1 000'6 1

8POZ LPOZ 9POZ EiPOI PPOZ EPOZ ZPOZ 1 POI OPOZ 6EOZ 8EOZ LEOZ 9EOZ 9EOZ PSOZ EEOZ ZEOZ

000'8 1 0002 1 0002 1 000'9 1 000'9 1 000's 1 000'9 1 000's 1 OOO'P 1 OOO'PL 000'E 1 000'E 1 000'E 1 ooo'z 1 ooo'z 1 ooo'z 1 000' 1 1 000' 11

%OS'Z %OG'Z %OTZ %OG'Z %OS'Z %OS'Z %OFZ %OTZ %OG'Z %OEi'Z %OEi'Z %OG'Z %OG'Z %OCZ %Oz;'Z %OI;'Z %Oz;"Z %OS'Z

zioz 'LE JaqwaDaa ana amqi?g zioz '1 hneuey 6U!Jnpyy

1 1oz 'LE Jaqwaaaa ana aaueleg OEOZ 6ZOZ 8ZOZ LZOZ 9zoz szoz PZOZ EZOZ 2101 LZOZ ozoz 6 1OZ 8 1OZ L 1oz 91oz s 1oz PLOZ E LOZ

oOo'sE1 $ (EiLL'O9)

SZE'Z 1 SL9'Z 1 000'2 1 OOE'Z 1 009'11 $

Junowy

L 1oz 91oz z; 1oz PLOZ

91

OOO'L99 $ (Z96'LPE) Z96'P 10' 1 LE L'LL8

006'69 $ (99Z'LZ) 991'18 LZ0'8P EOP'9 '309'9 OLL'9 '3 16'9 96'3'9 $

junouy ,

006'69 !$ 006'8 $ 000'1'3 $ (009'E) (009) (000'E) OOP'E9 OOP'6 OOO'P9 009'9 000' 1 00'3'9 %9 006'9 006"3 008'9 OOE'9 ooz'9 OOL'P OOL'P 00 L'P 00 L'P 00 1'P 009'E

006 006 008 008 OOL OOL OOL 009 009 009 009

000'9 000'9 000'9 00'3'P 009'P OOO'P OOO'P 009'E OO9'E OOG'E 000'E

%9 ?'a9 %9 %E; %9 %9 %G %9 %9 %'3 %9

009'E $ 009 $ 000'E $ %9 E LOZ Junowj a tl aPkl ' 1 henuey

81

61

061'90Z $ 8EP'GL $ ZSL'681 $ P8P'91Z $ 691'91 $ 9ZE'OOZ $ sasuadxg Gu!$e~ado lei01

LZL'19 999' 1 991'09 P89' 19 P06'1 08L'69 Z9L Z9L EZE 16 1 11L'P 886 P1O'G L8Z'O 1 E08'G 9L9 000'9 089'1Z

- 11 10 1 PO€' 1 6E 1

1 1L'P 886 COO' 1 98 1'0 1 66P'P LEV 000'9 089'11

ZEE'P ESZ' 1 9P 1 LL8'6 SOO'L 8ZL 000'9 OZO'ZE

- -

zo 1 999' 1 9P

-

- - 699'9 699'9 692'9 69Z'S 699'9 699'9 6ZZ'G 6ZZ'G - -

OP OP

- PGZ'9 P6Z'9 9L6'P 9L6'P 09 1 09 1 6E9 6E9 1LS 1 LE G09'P 909'P 909'P 909'P

- - - - - - -

- 889'8 889'8 6LZ'6 6LZ'6 z1z ZLZ 661 667:

- - -

- - - 6 19 619 - 1LL'E 1LL'E 99L'E 99L'E

909'P 909'P 909'P 909'P

- -

- EPP'88 EPP'8P P89'6.b P89'6P L 1E'Z L 1E'Z 808'7: 808'2: -

- 6ZP 6ZP EOZ' 1 EOZ' 1 OOP OOP 8PP' 1 8PP' 1 666 666 OPE OPE 008'Z 008'2 998'1 9P8'Z 86P'LP 86t7'1.t. OP0'1P OPO'LP

- -

-

- 899'1 899' 1 OE9 OE9

LOO'P8 $ - $ LOO'P8 $ 196'98 $ - $ Z96'P8 $

01

53z9'53 (€EO' 1z) (80P"; 1) 609'L (10 1'06) (Z69'ZZ) (ssol) awo3ul 6u!ge~ad()

OP9'L 868'99Z 86 1'89Z 1 PE E19c1LZ ZL 1 ' 1LZ sasuadxy Gu!$e~ado lei01 (5353 1) POZ'9 6E'9 OE 1 P90'9 PE6'9 aUO3Ul UeyJ Jay$() 'Saxel

€8Z'89 9z9 L19'1 1L9'6 ZLG'Z 969' 1 1 8EO' 1 P6E'P LEP'Z 6P6'Z 060'L8 000'9 Z9E'Z9

L80'€9 886 €00' 1 5381'01 L LE'Z LL8'11 899' 1 66P'P 9EP' 1 008'Z LOO'P8 000'9 8LO'E9

69P (668) zzz

(61 1) (9ZL) (9z1) L8

(Ob) E9Z' 1 9z 1

(LO 1)

-

Z8E'99 P53P 89E 999'6 E80'Z L 1z'z 1 L 1L OOP'9 98Z'Z 1L6'Z 9538'P8 000'9 090'EL

E 16'P9 E6Z' 1 9P 1 SLL'6 808'Z GPE'Z 1 OE9 OPP'S EZ0'1 9P8'Z Z96'P8 000'9 090'EL

1Z

S1 ESS'PS 8ES'PS (P18) 09P'PS PLZ'SS - (PP 1) SOL 6P8 9 16 S 16

09 - -

LO c

(0 1)

Z

-

-

1 LE'8E 11 zo 1 61€

P6Z' 1 8Z8 ELL'S 0 LZ'6

LSZ'8S 11 10 1 z1z

PO€' 1 8Z8 CLL'S 0 LZ'6

-

OOZ'8E

zo 1

06Z S9S' 1 OZP 8SL'E 011'6

- OOZ'8E

zo 1 66Z E9S S9S' 1 P99 9SL'E 0 LZ'6

-

8S0'1 $ 8EO'LZ $ 9L0'8Z $ (LE) $ LLZ'LZ $ OPZ'LZ $

zz

EZ

JAMES D. SPURLOCK CertijTed Public Accountant

306 EAST MAIN STREET SCOTTSVILLE, KENTUCKY 42164

PHONE: (270) 237-3450 FAX: (270) 239-3450

BPI? 1 2013 PUBLIC SERVICE

COIViMlSSlON

INDEPENDENT AUDITOR’S REPORT

To the Commissioners Fountain Run Water District # I Fountain Run, Kentucky

I have audited the accompanying financial statements of Fountain Run Water District #1 as of and for the years ended December 3 1,2012 and 201 1 as listed in the table of contents. These financial statements are the responsibility of the Fountain Run Water District #1’s management. My responsibility is to express an opinion on these financial statements based on my audit.

1 conducted my audits in accordance with auditing standards generally accepted in the TJnited States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of Fountain Run Water District # I as of December 3 1 , 2012 and 201 1 , and the results of its operations, changes in net assets and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, I have also issued my report dated March 26,2013, on my consideration of the Fountain Run Water District #1’s internal control over financial reporting and on my tests of its compliance with certain of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of my testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and important for assessing the results of my audits.

The management’s discussion and analysis and budgetary comparison information on pages 3 through 5 and 20 through 2 1 , respectively, are not a required part of the basic financial statements, but are supplementary information required by accounting principles generally accepted in the United States of America. I have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and Presentation of the required supplementary information. However, I did not audit the information and express no opinion on it.

1

My audit was conducted for the purpose of forming an opinion on the financial statements that comprise the Fountain Run Water District # 1’s basic financial statements. The accompanying schedule of operating expenses is presented for purposes of additional analysis and is not required parts of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

r‘\

Jam &4QJ* . Spurlock Public Accountant

March 26,201 3

\

2