hill, inzina company...richland parish police jury rayvlllf~ louisiana fll'lancial report...

$: HILL, INZINA COMPANY...RICHLAND PARISH POLICE JURY RAYVLLLF~ LOUISIANA Fll'lANCIAL REPORT December 31. 2010 HILL, INZINA & COMPANY Ccnified Public t\,:count.1nts • A Profcs)iolliJl$
RICHLAND PARISH POLICE JURY RAYVLLLF~ LOUISIANA

Fll'lANCIAL REPORT

December 31. 2010

HILL, INZINA & COMPANY Ccnified Public t\,:count.1nts • A Profcs)iolliJl Corporation

70 I F..,,,t Madison Avenue· Bastrop. Louisiana 71220 Tolephune J 18· 281-4492· Fax 31 ~-281-40S7 • F.-mail hillinlina@bell,outh.llel

mailto:hillinlina@bell,outh.llel

CONTENTS

INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

REQUIRED SUPPLEMENTARY INFORMATION (Part I of2)

Management'. di.cu.sion and analysis

BASIC FINANCIAL STATEMENTS

Government-wide financial statements: Stalement of nel as.et. - primary govemmem - governmental aetivilics Stalement of activities - primary government - governmental activities

Fund financial slalements: Balance sheet - governmental funds Sialement of revenues, expenditures. and changes in fund balances governmental funds Reconcilialion of governmental funds balance sheet 10 government-wide statement of net asseLs Reconciliation of governmental funds stalement of revenues. expenditures. and changes in fund balances to government-wide slatement of activities

Notes to tinaneial statements

REQUIRED SUPPLEMENTARY INFORMATION (part 20f2)

Budgetary comp"rison schedules· governmenwl funds: Schedule of revenues. expenditures. "nd changes in fund b"l"nces • budgel "nd "ctu,,1 (non-GAAP budgelary basi.) - governmenlal fund

general fund Schedule of revenues. expenditures.•md ch:.mgcs in fund balances· budget and aclual (non-GAAP budgetary ba.is) - governmental fund

road mainten"nce fund Schedule of revenues, expenditures, and changes in fund balances· budget and aclu,,1 (non-GAAP budgetary basis) - governmental fund drainage maintenance fund

Page(.)

I and 2

3-7

8 9

10

I I and 12

13

14

IS - 36

37 and 38

39

40

Pagefs)

Schedule of revenues, cxpenditures, and changes in fund balances budget and actual (non-GAAP budgetary basi" - governmental fund library fund 41

OTHER SUPPLEMENTARY INFORMATION

Combining financial statements; Combining balance shecl - non-major governmental funds Combining st"lement of revenues, expenditures, and changes in fund balances - non-major guvernmenUlI funds

42

43

Schedule of jurors' compensation Schedule of expenditures of federal awards Note to schedule of expenditures of federal awards

44 45 46

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPUANCE AND OTHER MATIERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDlTING STANDARDS 47 and 48

INDEPE:-IDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HA VB A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND r.-ITERNAL CONTROL OVER COMPUANCE IN ACCORDANCE WITH OMH CIRCULAR A-I 33 49 - 50

SCHEDULE OF FINDINGS AND QUESTIONED COSTS WITH MANAGEMENT'S RESPONSE AND PLANNED CORRECTIVE ACTION 51 - 59

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS 60

HILL, INZINA & COMPANY

INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

Police Jurors Richland Parish Police Jury Rayville. Louisiana

We have audited Ihe accompanying linancial st:ltemcnts of the governmental activincs, each m:ljor fund, and the aggregate remaining flmd information of Richlund Parish Police Jury (the "Jury") a$ of and tor the year ended December 31, :!010. which collectively comprise the basic financial slatements of the Jury's primary government as lisled in the table of contents. These financial statements are the responsibility of the management of the Jury. Our responsibility is to express opiniuns on these linuncial statements b'l,ed on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of Amerka and the standards applieahle to financial audits contained in Govemmcl/t Allditillg S'"I/dard" issued hythe ComptrollerGeneral of the Ullited Stales. Those standards require that we plan and perfonn the audit to obtain reasonable u'Sumnce about whether the financial statemenLs arc free of material misstatement. An audit includes examining, on a test basis. evidence supporting the amllunts and disclosures in thetinallci.l statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evalullting the overall financial stlltemcnt presentation. We believe that our audit provides a reasonable basis tur our opinions.

The finandal stalements do not include linancial dat.1 for the Jury's legally separate component units. AceoUnling principles generally aecepled in the United Stales of Americ:l require the linancial data lor those component unib 10 be reported .....ith the tinancial data of Ihc lury's primary government unless the lUry also issues linaneial slatements for lhe /inancial reporting entity thai include the tlnancial data for it~ component unit';. The Jury hns not i~sl1cd such reporting entity linancial st"kmenls. BecauSl' of this departure from accounting principles generally accepted in the United States of America, the amounts of the as.sel<. liahilities, net asseL', TCVenUes, and e~pcnses

of the aggregate discretely presented component units that would have been reported arc nol known.

10 our opinion. because of the omission of the discretely presenloo component uniLs, as discussed above, the financial slalemCnL\ referred to al>llVc do not present fairly. in conformity with aecouming principles genemlly accepted in the United Siales of America, the linaneial position of the aggregme discretely presented component units or the Jury, as of December 31. 2010. or Ihe changes in financ;,,1 position thereof for the year then ended.

-,-Certilied Public Accountants· A I'rolCs"onal Corporalion

70 I Ea~1 Mndison 1\ \o\"nuc • BaslnJp. Loui~iani1 712.2fJ , Telephone] 1~-!~ t-4492 • F'l\ 31 ~-2~ 1-40S7 • E-mail [email protected]

mailto:[email protected]

In addilion, in our opinion, the linancial statements referred 10 above prescnt fairly, in all material respects. the respective financial position of the governmental activilies and each major fund of the Jury as of December 31, 20 I0, and the respective changes in flllancial position for the ycar then ended in confonnity with accounling principles generally accepted in Ihe United States of America.

In accordance with GOI'emmelll Allditill8 Starulards, we have also issued our repon dated May 24. 20 I I on our consideration of the Jury's inlernal control over financial rcponing and on our lests of its compli.mce wilh certain provisions of laws, regulations. contracls, grant agreements, and· orher matters. The purpose of that repOll is 10 describe lhe scope of our tcsting of internal control over linancial reponing and compliance and the results of that testing. and not to provide an opinion on the inlernal control over finaocial reporting or on compliance. That report is an integral part of an audit performed io accordance wilh Government Auditing Stlllld",ds and should be considered in assessing the results of our audil.

Ouruudil waS conducted for the purpo" of forming opinions on the linancial statements that collectively comprise the basic financial statements of Ihc Jury's primary govemment. Management's discU!;sion amI analysis and the budgetary comparison schedules, presenled as rcquiretl supplemenlary information, are not a required part of the hasic linancial statemenls but are supplemcnlary intormation requiretl by accounting principles generally accepted in the United States of America. We have applied ce.rtain Iimiled procedures. which consisted principally of inquiries of management reganding the methods of measurement and presentation of the required supplementary information. However, we did not audillhc required suppl<menlary information and express no opinion on it. The other ~upplementury informalion is presented for purposes of additional analysis and is also nor a required part of lhe basic linancial stalements. The other supplementary infonnat;on has been subjected 10 the auditing procedures applied in the audit of the basic tinancial statemenls and. in our opinion. is fairly slateu in all material respects in relntion 10

the basic linancia! slatement~ laken as a whole.

151 Hil/. IIdll(/ & Co.

May :!4. 20 I I

-2

HEOUIRED SUPPLEMENTARY INFORMATION !Part lof2)

RICHLAND PARISH POLICE JURY

MANAGEMENT'S DISCUSSION AND ANALYSIS As of and for the Year Ended December 31. 20 I0

As management of Richland Parish Police Jury (the "Jury"), we offer rcaders of thc financial Slatements of the Jury's primary governmenlthis narrative overview and analysis at" the financial .ctivities of the Jury for the Iiscal year cnded December 31, 2010. This discussion and .nalysis of managcment is dc..igned to provide an objectivc and easy-to-read analysis or lhe Jury's financial activities based on currently known facts, decisions, or conditions. It is intcnded to provide readers with a broad overview of the Jury's finances. It is also inlended to providc readers with an analysis oflhe short-term and long-term activities of the Jury based on infomlation pre~nted in the Jinancial rcport and fiscal policies thaI havc been adopted by the Jury. Spccillcally. this section is designed 10 a'Sislthc readers in focusing on signiticant financial issues. provide an overview of the Jury's linancial activity, identify changcs in the Jury's linancial position (its ability to addrcss the ncxt and subsequent years' challenges). identify any material deviations from Ihe fmancial plan \the approved budget). and identify individual issues or concerns.

As with other sections of this financial report, the informalion contained within this discussion and analysis or management should be considered only a part of a greater whole. The readers of this statement should take time to read and evahlllte all ~ections ot" this report. inclliding the I'ootnotes and supplementary information that are provided in addition to this discussion and analysis of management.

Overview of the Financial Statemenl.~

This discussion and analysis is intended 10 serve as an introduction to the Jury's financial Slatements. The Jury's hasic financial statements consist of the following components:

I. Government-wide linancial statements. 2. Fund tinancial statements. 3. Notes to financiul sl:ltemcnl".

In addilion I(llhe basic t'innneial statement,. the Jury also includes in a subse<juent scctil>n of this report addilion,,1 information 10 supplement the bask Iinaneial statements.

-3

1. Government-wide financial st"tements

Government-wide fin"ncial stalements are designed by the GASB Statement No. 34 to change the way in which government tinaneial statements are presented. It now provides readers for the first lime with:l concise "entity-wide" statement of net assets and statement ofactivities, seeking to give the users of the financial stntemcnts a broad overview of the Jury's financial position and results or operations in a manner simil:IT to a private.sector business.

The stmement of net assets presents illfornJation on all or the Jury's assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-seclor companies, with the elimination of internal activities. The ditTerence between assets and liabilities is reported as net :lssets. Over time. increases or decreases ill net assets may serve us a useful indicator of whether the financial position or the Jury is improving or weakening. Evaluation of the overall economic health of the Jury would extend to other nonfinancial f:letors in nddition to the linancial infonnation provided in this report.

The statement or activities presents information detailing how the Jury's net assets changed during the current fiscal year. All current year revcnues ,lOd expense, are included reg:lrdless of when cash is received or paid. An important purpose ofthis statement is to show the financial reliance of the Jury's distinct activities or functions on revenues provided by the citizenry of the parish.

The government-wide financial statements report governmental activities of the Jury that arc principally supponed by laxes and intergovcrnmental revenues. Governmental :lctivities include generJl government, public smety. public works. health and welfare, culture and recreation. and debt service.

2. Fund financial stnlements

A fund is an accountability unit used to maintain control over resources segregated for specitic activili~s or objectives. The Jury uses funds toensure and demonstrate ('ompliance with financerelated laws and regulations. Wilhin the hasic financial swtements. fund linancial statements focus on lhe Jury as a whole with major funds being separ:llcly reported.

The Jury hu.s only one fund type. Governmental funds art: reported in the fand financial statem~[lts and enL:ompa....seS!"entiaJly the same functions reported as governmental activities in lhe government-wide financial statements. However. the focus is very different with fund statements providing a distinctive view of the Jury's governmental funds. These slatements report Shl>rl-t~rm fiscal accountability focusing on th~ use of spendable resources during the ycur and balances of spendable resourc"s avaihlble at the end of the year. They are userul in e",luuting annual financing requirements of governmental programs and commitment of spendable resources for the near-term.

-4.

A$ Ihe government-wide focus includes the long-Iern> view. comparisons belween Ihe$e two per$peelive$ may provide insight inlo the long-term impact of short-term financing decisions. A reconciliation from both lhe governmental fund balance sheet and Ihe statement of revenues. expenditures. and changes in fund balances to the governmenl-wide stalemenIs is provided 10 assist in underslanding the differences between the$e IwO pef$pcctives.

3. Notes 10 linancial statements

The accompanying nOles to the financial statements provide information essenlial to a full undel1ilanding of the government-wide and fund tinancial statements. The notes to the tinancial statements begin immediately following the financial stalements.

Government-Wide Financial Analysis

The following provides a summary or the nel assets of the JUry's governmental aetivilies os of December 31 :

Other assets Capital assets

Total assels

2010 $ 7.399,599

3.114,197 $ 10.513.7%

S

$

2009 6.578.450 2.719.543 9 ?97.993

Olher liabililies Long-term liabilities

TOlal liabiliTies

$ 2.359.927 321.794

$ 2.681.72 I

$

S

1.925,715 515.506

2.461.221

Net assets: Invested in capital assets, net of related Restricled for debt service Unrestricted

debl $ 2,792.403 107,555

4,932,117

$ 2.212.611 96.233

4,527,9?8

Total nel assets $ 7,832.075 $ 6,836,772

As nOled earlioe, net as-sets may serve overlimc as a useful indicator of the Jury's tinalleial position. The Jury will use lhe unrestricted net assets to meet lhe ongoing obligations to users of its services and creditors.

-5

Governmental Aeti vities

The following provides a summary of the Jury"s net asset changes between the two years ended December 31 :

2010 2009

Revenues and special items: Program revenues: Charges for services $ 1,088,070 $ 1,111,897

Operating gr~nts and contributions 714.581 1,027.091

Capital grants and contributions 20,725 37,177

General revenues: Taxes 6,778,447 5,609,054

Intergovernmental 505,422 542,133

Unrestricted investment earnings and miscellaneous 61.545 124,280

Total revenues $ 9,168,790 $ 8,45 1.632

Expense" General government $ 1.051,650 $ 1,093,837

Public safely 548,491 305,588 Public works 5,898,063 4,828.826 Health and welfare 208,190 218,299

Culture and recreation 710,979 604,377 Economic development 48,531 162.944 Debt service 14,256 29,453

Tolal expenses $ 8,480,160 $ 7,243.324

Change in net ..<seIS S 68S,630 $ 1,2U8,3U8

Net asselS - beginning 7,143,445 5,628.464

Nel assets - ending S 7.832,075 $ 6.836,772

The Jury's 10lal revenues incTC:.sed by $717, 158 wbile expenses increased also by S; 1,236,836, The majority ofthe revenue increases was from taxe.< while the majority ofthe expenditure increases was the result of work on FJ::MA and pipeline projects,

Program revenues derive directly from Ihe program itselfor from panie.< outsidelhe Jury's .axpayer.; ur citizenry, As a whole. they reduce Ihe coSI ofthc funclion 10 be fmanced from Ihe Jury's geneml revenues. Geneml revenues are used 10 pay for governmental activities whose COSI is not reduced by program revenues. The Jury IVas heavily relianl on general revenues 10 support governmental operations for both yea,,;. Gener~1 government and public works were the Jury's largest expenses for bolh yean; wilh both also having signilicant lax-bascu (general revenue) funding.

·6

Financial Analysis of Governmental Funds

The Jury" s major governmenlal funds and related fund balances as of December 31 were:

2010 2009

General $ 447,585 $ 175,739

Road Mainrenance 1,798,486 2,333,646 Drainage Maintenance 1,197,440 916.009 Library 882,495 663,100

Detennination of the Jury's major governmental funds arc made for e.lCh audit period. All fund balances of the governmental funds were unreserved at each year-end.

Budgetary Highlight.<

Budgets for all required funds wcre adopted for Ihe year ended December 31, 2010 which complied with tin.mcial policies approved by lhe jurors and maintained core Jury services. There were no signilkant (exceeding 5% or more) budget variances in lhe major funds lor the year ended December 31,2010.

Capilal Assel> and Debt Administration

The Jury' s major capital asset additions during the current liseal year were purchasing vehicles and equipment with availabk funds of the Road Maintenance fund. Depreciation of c;lpilal assets of $265.805 for the year ended December 31,2010 w:!.< recorded in the governmentalaetivitie.~of the government-wide financial statemenl~.

During the year ended December 31. 20 I0, the Jury acquired no ncw debt. At the end of the liscal year, the Jury had long-tenn liabilities consisting of ceniticates of deposit and eapilalleases. The long-term liabilities will be liquidaled by either lhe Road Maintenance. Drainage Maintenance, or Counhouse Maintenance Funds.

Economic Factors and Next Ycar's Budgel

The Jury's original budgets for tbe year cnding December 31. 2011 were prepared based on a pr~iecl«1 increase in ad valorem and ~ale, tax revenucs with c.\pcnditures increasing alsll. The 2011 original combined bUdget IOtaled S15.620,480 compared to thc 20 \0 original budget 01'$13.174,350.

Requests for Infonnal ion

This linancial repan is designed to providc a general overview of the Jury's financial picture for all lbose with an interest in the Jury's linanees. Questions concerning any ofthc information provided in thi~ repon, or requests for additional financial information. should be addressed 10 the Secrclaryrrrcasurer, Post Oftice Box 668. Rayville. Louisian.. 71269-0668.

-7

BASIC FINANCIAL STATEMENTS

RICHLAND PARISH POLICE JURY RA YVILLE, LOUISIANA

STATEMENT OF NET ASSETS - PRIMARY GOVERNMENT GOVERNMENTAL ACTIVITIES

December 31 ,2010

ASSETS

Ca~h $ 5,033,795 Certilicat~s of deposil 58,834 R~ceivable~ 2.199,415 ReSJricted asset, Cash 107.555

Capital assets; Land 306,673 Other capital a,sel" n~t of depreciation ? 807.524

Tolal assets $ 10.513,796

L1AB!LlTIES

Accounts payable $ 197.754 Payroll payables 105,881 Accrued illlcrcst 6,706 Deposits held for olhers IOJklO Deferrcd rcvenue 1.970,349 Property laxes paid under prot~st 69,237 Long-term liabilities: Due within One year 143,865 Du~ in more than one year 177.929 TOUlllial>ilitie, 2,681,721:Ii

NET ASSETS

Inv~sted in capital a.ssets. net of rel"t~d debt S 2,792,403 Restricted ror debt ~rvice 107.555 Unre~tri"1ed 4.932,117

Total net aSS~IS $ 7,832,075

Total liahilities and nct U'M:.t, $ 10,513.796

Sec notes to Ii nancial ~tal"mcnts.

-8

RICHLAND PARISH POLICE JURY RA YVIli.E, LOUISIANA

STATEMENT OF ACTIVITIES - PRIMAR Y GOVERNMENT GOVERNMENTAL ACTIVITiES

For the Year Ended December 31. 20 I0

PwgrJnl R£\,cnu('s !'IOI (hp<n"'l

Opcratin~ ('~pilal Revenue aJ1d C1J:trgcs (or Gr:.Jnls and Granl~ and ChOlIl£CS in

F.x-pense:.: SCfvil.:CS Contribulion" COillIihulions :'·kIA...s~... FuncfionrJPmgrams:

Current", Gcner.ll go\'cnUl~nl:

legislilli\'c S 189.%0 5 S 5 $( 189.961)1 Judici:ll 319.475 ~48.6(}8 15.226 ( 5,(,,(11 Elections 27.213 ( 27.~13)

finanl'C lJnu ndministr:JliVl' J75.371 118.692 ( 56.6791 OLher

Public ,.rely 3.19.631 54M91

8.426 48.949

17.375 30'1.278 20.725

(

(

313.K30) 169.5391

Publk 'hurls 5.IN8.063 607.956 314.015 ( -1.976.(92) H~;Jllh ~.lIId wclfar.: lOS. I!/O ( 208.190) Cultul'C Ilnd ~cr~alion 710.979 5.439 1.1.656 ( 691,884/ E('('lnolllil.: d..:vclLlpmcnt 48.531 45.031 ( 3.5001

Debt S\:I"\'j("c;

fnt('.l't'~t 14256 1-1.256)

Tota1 £o'..~rnmclll:tl

ac.::ti"ilic~ S ¥AS(l,160 5 I 01\8070 $ 714581 S 21l.72' $( 6.656,7841

G~ncrul revenues: Ta;(~s $ 6.778.447 Intcrgol;cmlncnLal 505.422 Unrcslric.lcl' in\'t:s1mclll c:.unings .Intl mi"n::l1:.mcous (,1545

°l'olal gellCr.J1 rc\lCJlUC~ S 7.145414

Change in nel as...:t:, 5 6H:HJ.10

~et iL'\.....CI~ • beginning 7 143445

$ 7,8 12,075

See nOles to fmancial ~1'I.m.l\I~.

-9

RICHLAND PARISH POLICE JURY RAYVILLE, LOUISIANA

BALANCESHEET-GOVERNMENTALFUNDS December 31,2010

ASSETS Genernl

Road Maintenance

Drainage Majntenance

Cash Certilieates of deposit Receivables Restricted asset: Cash

Duc from other funds

S 467,847 21.577

857,336

140.435

S 1,797.867

58.789

136.356

S 1,262.675

10,507

14.179

Total assets $ 1.487.195 S 1.993.012 $ I 287.361

L1ABILITLES AND FUND BALANCES

Liabililies: Accounts payable Puyroll payables Deposit, held for other,; Due to other funds Deferred revenue Property taxes paid under protesl TOUllliabilitics

$ 22,656 105,881

81,464 803.734 25.875

$ 1.039.610

$ 128.174

10.000 56,352

S 194.526

$

S

26.02K

63,893

89.921

Fund balances: Reserved for debt service Unreserved and undesignated Total fund balances

$ 447.585

$ 447.585

$ 1.798.486

$ 1.798.486

$

S 1.197.440 1.197.440

TOUllliabilities and fund balance, S 1.487.195 $ 1.993.012 S 1.287.361

Sec notes to Iinaneial slalemenls.

LibrJry Other

Governmental

Total Governmental

Funds

$ 906.500 31,644

992.499

$ 598.906 5,613

227,396

S 5,033.795 58,834

2,146,527

107.555 107.555 290.970

$ 1.930.643 $ 939.470 $ 7.637,681

$

$

9.759

9,061 992.499

36,829 1,048,148

$

$

42,504

80,200 174.116

6.533 303,353

$ 229,121 105,881 10.000

290.970 1,970,349

69,237 $ 2,675.558

$

$ 882.495 882.495

S

$

107,555 528562 636,117

$ 107.555 4854.56ll

$ 4,962.123

S 1,9l0,643 $ 939.470 S 7637,@1

·10

RICHLAND PARISH POLICE JURY RA YVlLLE. LOUISLANA

STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES· IN FUND BALANCES· GOVERNMENTAL FUNDS

For the Year Ended December 3I. 2010

Road Drainage General Maintenance- Maintenance

Revenues: Taxes $ 695,348 $ 3,117,795 $ 1.626,675 Licenses and permils 118,6n Intergovernmental 546.609 526,460 Fees, charges, and commissions for services 36.641 563,881 Fines and forfeiwres 4.779 Interest and miscellaneous 12,142 32.877 5.037

$ 1.414.211 $ 4,241.013 $ 1.631.712

Expendilures: Curren!: General government

Legislative $ 189.960 $ $ Judicial 63,943 Elections 27.213 Finance and administralive 178,045 Olher 46,645

Public safcly 528.690 Public works 4.416.898 1.281,353 Heahh and welfare 73,821 Culture and rccrcolion Economic development 48.531

Debt scrvice 4,174 46,223 65,178 Capilal outlay 34,217 313,052 3,750

S 1.195259 $ 4.776,173 $ 1.350.281

Library Other

Governmental

Total Govemmenlal

Funds

S 849,800

64,891

S 488,829

62,588

S 6,778,447 118.692

1,200,548

$

3,330 2.109 7,659

927.789 $

314,563 3,830

869,1l1O S

603,852 321,451 61545

9,084.515

S

$

70'i,014

~,780

70X 394

$

$

255,532

273,226

35,147 104,056

34,866

7'i2.827

$ 189.960 319,475

27,2\3 178.045 319.871 528,690

5.733,398 177.877 705.6\4 48,531

200,441 3'i3,1l19

S 8.782.934

(continued)

.\ 1

RICHLAND PARISH POLICE JURY RA YVlLLE, LOUISIANA

STATEMENT 01' REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS (Continued)

For the Year Ended December 3 I, 2010

Excess of revenues over expenditures General

$ 218,952 M

$(

Road ninlenance

535,160)

DrJ.in:lge Maintenynce

$ 2~1,431

Other financing sources (uses): Operating transfers in (out) 154)

Nel changes in fund balances $ 218,798 $( 535,160) $ 281,431

Fund balances - beginning 175,739 2,333,646 916,009

Residual equily transfers in (0111) 53,048

Fund balances - ending S 447.585 S 1.798.486 $ 1,197.440

Sec noles to financial stalements.

$ Library

219,395

Total Other Governmenlal

Governmental Funds S ) 16.983 $ 301.601

154

j; 219.395 j; 111.131 $ 301.601

663.100 512.028 4,660,522

53.048)

$ 882.495 5> 636,111 S 4,962,123

-12


RECONCIUAnON OF GOVERNMENTAL FUNDS BALANCE SHEET TO GOVERNMENT-WIDE STATEMENT OF NET ASSETS

December 31, 2010

Total fund balances - governmental funds balance sheet $ 4,962.123

Amounts reponed for governmentaillctivities in statement of net assets are different because:

Certain revenues are not currently available at the end of the Jury's Iiscal year end and are not reported in thc funds. 84,255

Capital assets used in governmental activities are not financial resources and therefore arc not reported in [he funds. 3,114,197

Capital leases, cenificates of indebtedness, and accrued interest arc not due and payable in the current period and therefore are not reponed in the funds. 3211,5()()

Total net assets of govcrnmental activities - government-wide statement of net assets $ 7.832.07~

See notes to financial statements.

- 1.1

R1CHLAND PARISH POUCE JURY RAYVILLE, LOUISIANA

RECONCILIATION OF GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN ruND BALANCES TO

GOVERNMENT-WlDESTATEMENTOF ACTIVITIES December 31, 2010

Net change~ in fund balances - governmental fund~ $ 301,601

Amount~ reported for governmental activities ill s'atemellt of activitie~ arc different because:

Governmental lunds do not report some revenues because they will not be collected for some time <lfter the Jul)"s li~cal year ends <lnd are not "available" revenues. 84,255

Governmental lunds report capital outlay~ as expenditures. However, ill the statement of activities the cost of those assets is allocated over their e~timal<ld useful lives and reponed as depreciation expense, This is the amount by which capital outlay ($353.&19) exceeded depreciation ($265.805) and other ($33) in Ihe current period. 87,981

Compensated absences reponed in the Slalemenl of (.ctivities do nOI require the use of current financial resources and therefore arc not reponed as expenditures in governmental lunds. 28.575

Governmental funds repon principal and interest payments onlong-terrn obligations as an expense when actually paid. However, in the statement of activities. interest is expensed as accrued and priucipal payments are reponed as reductions of the related debt. This is the :lI1lOunt rel<lted to these reponing ditTerences. IR6,?IR

Chungcs in net assets of govcmn1cntal activities - govi,;rnmcnt-widc statement of aClivities $ 68&,630

-14

RICHLAND PARISH POLICE JURY RAYVILLE. LOUISIANA

NOTES TO FINANCIAL STATEMENTS As of ~nd for the Year Ended December 31. 2010

Note 1. Organization and Summary of Significant Accounting Policies

Richland Parish Police Jury (the "Jury") is the governing authority for Richland Parish and is a poliliC:11 subdivision 01 State of Louisiana. The Jury is governed by ninecomlJensatcd jurors representing. by election. the v,,,ious districts within the parish. The jurors serve (our-ye,,, terms that expire on December 3 J. 20 II.

Louisiana Revised Statute 33: 1236 gives the Jury various powers in regulating and directing the affairs of the parish and its inhabitants. '[ne more nOlable of these are the JlOwers to make regulations for its own government; to regulate the construction and maintenance of roads. bridges, and dr.linage systems; to regulate the sale of alcobolic bevemges; and to provide for the health and welfare of Ihe poor. disadvantaged, and unemployed in the parish. Funding to accomplish these tasks in part is provided by ad v~tlorem taxes, sales ta.'{cs. severance taxes. permits, state revenue ~hJring, and various other Slate and federal gr.lnK

The parish is located in northeast Louisiana and its population is appmximmely:! 1.000. Approximately 575 mib of roads are maintained by the parish. The Jury employs approximately 100 people.

In accomplishing its objectives. the Jury also has the authority to creat" special dimicts (component units) within thc parish. The districts perform specialized functions. such as fire protection, water distribution. sewerage collection and disposnl. and health care facilities.

The more. significant of the Jury'!' i.ll·c()lInling pl)li(.'i~s O.lrc uL'sl:ribcd below:

Financial Reponing Entity:

As the governing :lUIhority or the parish. for reporting purposes, the Jury is thc linancial reponing entity for Richland P:lrish. The lin:,"cial reporting "nlity consisl.< of (a) the primary government (Jury). (II) organiLutions ror which the primary government is Ii nnncially accountable. and (c') other organizations for which the nature and signilicance of their rclalionship with rhe primary government arc such that exclusion would cause the reponing entity's linandal swtemcnts to be mislcading or incomplete.

-15

NOTES TO HNANCIAL STATEMENTS

Governmental Accounting Standards Board (GASB) Statcment No. 14, Tire Reporting Ell/it)'. established criteria for dctermining the govcrnmcntal reporting entity and componcnt units thai should be considered pan of the Jury for tinancial reporting purposes. The basic criterion for including a potential component unit within the reporting entity is financial accounmbility. Thc GASB has set forth criteria to be considercd in dClennining financial accountability. This criteria includes:

I. Appointing a voting majority of an organization's governing body, and a. the ability of the Jury to impose its will on that organization and/or, b. the potential for the organization to provide specific financial benefits to or

impose specific financial burdens on thc Jury.

2. Organizations for which the Jury does not appoint a voting majority but are fiscally dependent on the Jury.

3. Organizations for which thc reporting enlity financial swtemcnts would be misle:Jding if data of the organiwtion is not included because of thc nature or signiticance of the relationship.

Based on the previous criteria. lhe Jury has detennincd that Ihe following component units are part of the reporting entity:

Fiscal Criteria Component Unit Year End Wed

Fifth Judicial District Criminal Court Fund 12-31 3 Northside Utility District No.2 12-31 I Richland pilrish Hospital Service Districts No, I, lA, IB, and IC 9·30 1 and 2

Start-Girard Fire Protecti,)n Dislriet 12-31 1 Archibald-Alto Firc Protcction Distric! 12-31 1 tlolly Ridge Fire Protcction District 12-31 1 Mangh:lm Fire Protection Di~trict 12-31 J Richland Parish Communications District 12-31 I Richland Parish Firc Protection District No.8 12-31 I Richland Parish Sales and Usc Tax Commission 6-30 2 Ward One Rural fire Prolection District 12-31 I

- 16

NOTES TO FINANCIAL STATEM ENTS

The primary government"s (Jury's) financial statements include. all funds under the Jury's conlrol and certain organizations for which the Jury maintains the accounting records. The Jury mainrains the accounting records for Fifth Judicial Districi Criminal Court Fund. This fund is considered a part of the Jury and is included in the primlll)' government lin:mcial statements. The Jury has chosen to issue financial statements of the primary government (Jury) only; therefore, none of the other previously listed component unilS are included in the accOlnpanying financial sralemcnls. The e1lcet of the omission of these component unilS is unknown.

GASH Statement No. 14 provides for the issuance of primary government fimmcial 'talement, Ihat are separate from those of me reporting entity. However. the primary government" s (Jury' sl financial statements are not a substitute forthe reporting entity's financial statements. The accompanying primarygovernment financial statemenrs have been prepared in conformity with generally accepted accounting principles as applied to governmental units. These l'nancial statemenrs are not intended to and do not n:port on the reporting entity but rather are intended to relleet only the financial statements of the primary government (Jury).

Also considered in the determination of component units of the reporting entity were Richlmd Parish Sherifl: Richland Parish Clerk ofCourt, Richland Parish Tax Assessor. Richland Parish School Board, District Allorney and Judges for Ihe Fifth Judicial District. and the various municipalities and nonprolit entities in the parish. It wa., determined that these governmental and nonprotit entities arc not component units of Richland Parish Police Jury reporting entity. With the exception of the DislricL Allomey and Judges for the Fifth Judicial District. these entities have separately elected governing hodies. arc legally separate. and are fiscally independent of the Jury. They an: considered by the Jury to be separate auWnomous entities and issue financial statements separale from those of Richland Parish Police Jury rep0l1ing entity.

Govemmcnt-Wide Financial Statements:

Tht: gov~rnmt.·nt-widc linancial sta'~mcnt,S; include Ihe ~tat~mt:nt or net assets and the statement uf activities thillrcport financial int'oTllliltion for the primary gO'l.rcmmcn1 (Jury). Individual funds are not displayed bUI the statements report governmental activities. generally supported hy laxes and intcrgovernmental revenues. The Jury has no business-type activities. generally I'naneed in whole or in part with Iccs charged Lo external custolllers.

-17

NOTES TO rINANCIAL STATEMENTS

The statement of aClivities reports the expenses of a given funcliot. of/scI by program revenues directly connected with the functional program. A function is an assembly of similar aclivities alld may illclude ponions of a fUlld or summarize more thall Olle fund locapturelhecxpensesand program revenues associated with adistinct functional activity. Program revenues include: (1) charges for services which repon licenses, permits, fees, fines, forfeitures, and other charges to users of the Jury's services; (2)

operating grants alld contributions which finance annual operating activities; and (3) Cllpital grants and contributions which fund the acquisition, construction. Or rehabilitation of cariml assets. These revenues are subjcct to externally imposed restrictions to these program uses. Taxes and other revenue source·s not properly included with program revenues are reponed as gcner.tl revenues.

fund Financial Slalement.':

Fund tinancial statements are provided for governmental funds with major illdividual govemmcntal funds reponed in separate columns and a composite column for nonmajor g(wemmental funds.

Busis of Accounting. Mcasurement Focus. and Financial Statement Presentation:

The financial statements of the Jury arc preparcd in accordance with generally accepled accounting principle, (GAAP).

The government-wide statements repon using the economic re~ources measurement focus and the accrual basis of accounting generally including the reclassification or elimination ofinternal activity (between or within funds). Revenues are recorded when earned and expenses arc recorded when a liability is incurred, regardless of the timing of related ca.,h tlows. Ad valorem tax revenues are recognized in the yeM for which they are levied while grants are rceogniLcd when grantor eligibility requirements arc met.

Governmental fund financial statements repon using the current finuncial resources measurement focus and the- modified accrual hasis of accounting. Revenue ... arc. recognized when they arc both measurable and available. Available means collectible within the current period or soon cnough thereafter to pay current liabilities. The Jury considers rr.venucs tu be available if they are collected wilhin 60 days of the end uf the fiscal year. Expenditures are reconled when the related fund liability is incurred, ex.:epl for principal ;md interest related to long-rerm debt, as wdl as expenditures related to compensated absences, which are reported as expenditures in the year duc_ Thi, same measurcmetlt rocus and basis ofaccounting is used tocalculateexpcnditures or rederal awards.

,I S

NOTES TO FINANCIAL STATEMENTS

Major revenue sources susceptible to accrual are ad valorem taxes. sales laxes, gross receipts taxes, intergovernmental revenues, and fines:md forfeiture.s. In general, other revenues are recognized when cash is received.

Fund Types:

The Jury reports the following major governmental funds:

Genenll Fund - the general operating fund of Ihe Jury:md accounts for all financial resources. except those required 10 be accounted for in other fund~.

Road Maintenance Fund - constructing, maintaining, and repairing public rouds and bridges in the parish and for acquiring. maintaining. andlor operating road machinery and equ ipment.

Drainage Maintenance Fund - maintaining drainage canals and ditches in the parish and for acquiring, maintaining. andlor operating drainage machinery equipment.

Libmry Fund - maintaining the public libraries.

Budgets and Budgetary Accounting:

Preliminary budgets for the ensuing year = prepared by the secretary/treasurer prior 10 December 3\ of each year. During November. the finance eommitlee reviews the proposed budgets and makes changes as it deems appropriate. Notice of the location and the lIvailability of the proposed bUdgeLs for public inspection and Ihe date of the public hearing In be conducted on the budgets are then advertised in the offieialjournal of the Jury. Prior to its regular December meeting. the Jury conducts a public hearing on the proposed budgets in order to receive comments from residents. Changes are made to the proposed budgets based on Ihe public hearing and the desires of the Jury as a whole. The budget' :lfe then adopted during a December meeting and nolice of adoption. Ihat includes budget summaries. is published in the ofliciaJ journal.

The secretary/treasurer presents necessary hUdgct amendments 10 the Jury during Ihe year when, in her judgement, actual operations nre differing materially from those anticipated in the original budgct. During a regular meeting, the Jury reviews the propose" <lmendments, makes changcs as it deems necessary, and formally adopts the amendments. The formal adoption of amendments is included in the Jury's minutes published in theJury's official journal.

-19


The Jury adopted annual budgets lor all of the governmental funds on December 7. 2009. The annual budgets were prepaJed on a non-GAAP budgetaJy basis of accounting. All budget amendments were approved by the Jury. The budgetary comparison schedules included in the accompanying financial statements include the original and linal adopted budgets. Amending the budgets to actual cash amounts at each December 31 is the common practice of the Jury and such was approved by the Jury on Deeemher 20. 2010. All ,mnual appropriations lapse at flseal year end.

Usc 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 certain reported amounts and di5Closures. Accordingly, actual results could diller from those estimates.

Cash and Cenilicates of Deposit:

Cash includes amounts in demand deposits. Under st.!tc law, the Ju,)' may depnsit funds in demand deposits, interest-hearing demand deposits,ortimcdeposits with state banks organized under Louisiana law or any other stile of the United States, or under the laIVs of the United States.

State law allolVs the Jury to invest in collateralized certificates ofdeposits, government backed securiti"s, commen:ial paper, the state sponsored investment pool, and mutual funds consisting solely of government backed securities.

If the original maturities of time deposits exceed 90 days, they arc elassitied as certificates of deposit. As of December 31, 20 I0, the Jury's investments consisted of non-negotiable certificates of deposit.

Rc:ccivable.~:

Signirlcant re.ceivables include ad valorem tax revenues.

Uncollectible Allowance:

The statements contllin no provision for uncollectible accounts. Jury's management is of the opinion that such allowance would be immaterial in relalion to Ihe financial statements taken as a whole,

-20


Interfund Transaction~:

Activity between funds that are representative of IcndingibolTOwing arrangement:; and other miscellaneous receivables/payables outstanding al the end of the fiscal year arc reported as due to/from other funds (i.e. the eurrenl portion of interfund loans) in the fund financial slatements.

Trdnsfcrs and payments within the reponing entity Ihal nre substantially for the purpo~es of subsidizing operating funclions, funding capital project' and asset acquisitions, or maintaining debt service on a rouline ba~is are reported uS oper.lling transfers between funds ofthe reporting entity. Nonrecurring or nonrouline permanent transfers of net assets llre reported as residual equity transfers.

Interfund transactions arc eliminated in the government-wide fInancial stalements while all are reported in the fund financial statements.

Restrictell Asset

Restricted assels are reported for cash legally reslricted for the specilled purpose of debt service payments.

Whcn both restricted 'md un",slricted resources are available for use. it is the Jury's policy to use restricted resources tirsl. then unreslricted resourccs as needed.

Capilal A~sets and Depreciation:

Capital assets. which include propel1y. plant. and equipment. wilh useful lives of more Ihan one year. arc reported in the government.wide financial Slalemenls. Capilal asseL~

are recorded al historical cosl or estimated cost if historical cost is not available. Donaled assets are stated at fair value on the date of donation.

The Jury generally capitalizes individual infrastructure a'SelS wilh cost of $ 100,000or more and all other asseLs with cost of $2.500 or morc us purchase and eonslruction outlays occur. Jury's rnanagcmenlnpted upon implementing GASH 34 during Ihc year cndell December 31. 2004 not to retroactively repon general infrastruclure assets uS

there was no debt aSsocialed with those llsselS.

The costs of normal maintenance and repairs not adding 10 an asset's value or malerially eXlending its u$CCul life are not capiwlized. Upon disposilion of capital a.<sets, the cost and applicable accumulaled depreciation lire removed from Ihe respeclive ,!Ccounls, and Ihe resulting gain or loss is recorded in operations.


As surplus assets arc sold for an immaterial amount when declared no longer needed for public purpuses, no salvage value is taken into consideration for depredation purposes. All capital assets, othcr Ihan land, are deprecialed using the straight-line method over the following useful lives:

Buildings .md improvements 20 - 40 years Machinery and equipment 5 - 15 years

Deferred Revenue:

The Jury rcpOJ1S deferred revenue which arises when a potential revenue does not meet both the measurable and available criteria for recognition in Ihe current period. In subsequent periods, when both revenue recognition criteria are met. the liability for dt:ferred revenue is remnved and revenue is recognized.

Accumulaled Compensated Absences:

Effective Janual)' 1,2011, the Jury changed its annual leave policy for all employees e"ept for tho"e of the Library and Criminal Court. Employee< will no longer accumulate annual leave and sick pay but will cam paid lime off depending 011 the length of their employmem. Annllalleave accumulated by employees as of December 31, 2010 will be crediled to years of service at retiremenl; therefore, no liability for accumulated compensated absences was recorded in the government-wide IInancial statements.

Employees of the Library cam from ten 10 20 days of annual leave each anniversary year of employment. depending lipan professional statlls. Up to 10 days of annual leave may be accumulated, dcpending upon professional stalus. Upon termination of cmployment, employees may be paid for accumulated annual leave at their current rate of pay. Employees e<:lm 12 days uf sick leave cach year and may accumulate up to 30 days. Employees an: nol paid for Ilonvcsting .ccumulnted sick leave upon termination uf e.mploymcnr.

Management of the Criminal Court Fund has not eSl<Jblished form. I annual or sick leave polici"s.

-22


The lury's recognilion and measurement criteria for compensated absences follows:

GASB Slatement No. 16 provides lhat vacation leave and olher compensaled absences wilh similar characleristics should be accrued as a liability as Ihe benefils are earned by the employees if both of the following conditions are met:

I. The employees' rights to receive cornpcns;.lion are altributable to services already rendered.

2. It is probable Ihat the employer will compensate the employees for the benefits through paid lime off or some olher means, such a.s cash payments at

termination or retirement.

GASB Stutement No. 16 provides thm a liability for sick leave should be accrued using one of the following lennination approaches:

I. An accrual ror earned sick leave should be made only to Ihe extent it is probable that the benelits will result in termination payments. rather than be wken as absences due to illness or other contingencies, such as medical appointments and funerals.

2. Alternatively, a governmental entity should estimale ils accmed sick leave liabilily based on the sick leave accumulated althe bulance sheel date by Ihose employees who eurrenlly are eligible to receive lerminalion payments as well as olher employees who are «peeted to Occome el igible in Ihe future 10 receive such payments.

Estimuled accrued compensated ubscnees in an amount considered immalcri,lI resulling' .t'rom unused annual leave for employees oflhe Library allhe end of Ihe liseal year are nOI recorded in the governmem-wide financial statements. No liabilily has been recorded in the government-wide or fund financial Slalement, for the immaterial amounl of accrued salaries earned by Ihe employees us of December 31. 20 IO.

Compensaled ahsences arc paid from Ihe fund responsible for the employee's compensation.

-23


Long-Term Liabilitie,:

In the government-wide financial statements. outstanding debt is reported as liabilities. The fund financial statements recognize proceeds ofdebt as other financing sources of the current period. Expenditures for long-term debt principal and interest payments arc recorded in the fund financial.latements in the year due.

Equity C1a.silications:

In the government-wide linaneial statements, equity is classified a> net assets and cla.silied funher into three componenls:

I. Invested in capital assets, net of related debt - consists of capital assets, net of accumulated depreciation, and reduced by the outstanding balance. of any bonds. mortgages, notes. or other bnrrowings attributable to the acquisition, construction, or improvement of the assets.

2. Restricted· consists of net a<sets with constraint. placed on their use either by (a) external groups such as creditors. gr~nlors, contributors, or laws and regulations of other governments; or (b) law through eonstitutionul provisions or enabling legislation.

3. Unrestricted - consists of nil other assets.

In the fund financial statements. governmental fund balances arc classified as reserved or unreserved with unreserved further classified as undesignated as amounts are available for appropriation and 110t legally restricted for specified purposes. Fund balance is reserved for amounts not available for appropriation or legally restricted for .pecilicd purposes.

Revenue Recognition - Ad Vatorem and Sales Taxes:

Ad valorem tax'" attach as an enforceable Iien on propeny as of the d"te of the tax rolls are filed with the recorder of mongages which. by law, must be on or belcH'C November 15 of each year. Billed taxes become delinquent on January I of the following yeolf. Richland Parish Sherilf bills and collects the Jury's property laxes using the assessed valuesdelern\ined by Richland Parish Tax Assessor. Revenues from ad valorem taxes are recognized as deferred revenue when levied.

-24


Sales/use taxes collected and held by 01 her governments at year end on behalf of the Jury and those colleeled by other governments and remitted to the Jury within 60 days afler December 31 for preceding months are recognized as revenue. The sales/use taxes are collected by Richland Parish Sales and Usc Tax Commission and remitted to the Jury.

Note 2. Deposits with FinanciallnstilUtion<

The following is a summary of cash and certificates ofdeposit (book balances) held by lhe Jury as of December 31. 2010:

.Interest-bearing demand deposils $ 5.141.180 Time deposits 58.834 Petty cash 170

$ 5,200,184

Thesc dcposits are stated at cost. which i1pproximatcs market value. Under state law,these deposits (or the resulting bank balances) must be secured by federal deposit insurance or the pledge of securities owned by the liseal agent bank. The market value of the pledged securities plus the rederal deposit insurance must at all times equal the amount on deposit with the fiscal agent. These securilies were· held in the name of the pledging Iiseal agenl bank in a holding or custodial bank lhut wa< mutually acceptable to both parties.

As of December 31, 2010, the Jury had $5,270.912 in deposits (collected bank balances). These deposits were secured from risk by $250.000 of fedeml deposit insurance and $5,020,932 of pledged seeuritie.' held by the eounrerpany's trust department or agent in the lury's name.

There were no repurchase or reverse repurchase agreements as of December 31. 2010.

-25

NOTES TO RNANCIAL STATEMENTS

Note 3. ReceivabJc~

A summary of receivables as of December 31,2010 is as follows:

Taxes: Au valorem Gross re(:dpIS

Stiles T.iccllses and penni1s Jntergovernmental:

Reer taxes Severance l~t'(cs

P:.trish Trnnspunati()11 At:t Slate and federal gnlms

Fees. chmgcs.•1Od cOlnmisslons for services

Fine's and ro,fejlurc)

S

General

803.734 I,4S0

-3.~69

2.864 7.98J

. 35.069

2.053 28~

Road Maiptcmlm:c

S --

20.139 -

-21.618 17,032

--

Drainage Maintc",mce

$ --

10.507 .

---

$

Lihrary

992,499 -

.

. -

TOlal Oth., Governmental

Govcrnmcnl;J) Funds

$ 174,116 $ 1.970,J49

- 1,480 - 30,646 . 3.869

. 2.864 7,983

21,618 31.367 83,468

- 2,052 21,913 ~2,198

$ 857.336 L 58,789 $ 10.507 S 992.499 $ 227,396 $ 2,146.527

(This page inlentionally prinled in this formal due to spacing restrictions.)

-:'.6


Note 4. Taxes

The following is a summary of authorized and levied ad valorem taxes for the year ended December 31. 20 I0:

Authorized Levied Expiration Millage Millage Date

GenernJ corporate purposes 8.88 888 Perpetual Health unit 1.17 1.17 2018 Library 6.67 6.67 2018

Total ad valorem taxes levied were S1.970350 for the above millages. As of December 31, 20 I0, $69,237 of ad valorem taxes had been paid under protest from prior years' lax levies. No amounts were due from prior year tax levies a.' of December 31, 20 IO.

The following were the principal ad valorem taxpayers for Richland Parish as a whole:

Assessed Ad Valorem Taxpayer Valualion Tax Revenue

Midcontinent Express Pipeline, LLC $ 15,630,490 $ 1,192,821 Gulf South Pipeline Co.. LLC 15.838,98U 1,142,42X Centerpoint Energy Gas Trans. 14,622.080 1,088.704 Gulf Crossing Pipeline 11.82U,390 922,059

For the year ended December31, 2010, sales taxes thai expire on December 31. 2014 were levied as follows:

Rate Purpose 78%ofl% constructing. overlaying, improving. repiliring. and maintaining public

roads and bridges 14l}& or 1% pUrCh3~i: and main1cn:mcc of equipmen. lI~e.d for (.·on~tnlcting.

overlaying, improving, rcp~liril1g:• •.I11d m'linlaining public roads and l:Jridges

8%of 1% maintenance of counhousc 71% of\'z% constructing, improving. and maintaining public drains and drainage

facilities 25% of 1% purchase and maintenance of equipment used in constructing,

improving, and mainwining public drains and druinage facilities 4% of 1% maintenance of counhousc

-27


Note 5. Interfund Receivable~ and Payables

A summary of amount~ due fromlto Olher funds as of December 31, 20 lOis as follow~:

Reed vable Fund Payable Fund General Criminal Court $ 58,856 Road Maintenance Gener,,1 76,423 General Road Maintenance 12,667 Road Maintenance Drainage Maintenance 47,812 Road Maintenance. Heallh Unit 4,450 Road Maintenance Courthouse Maintenance 7,571 Dminage Maintenance Road Maintenance 14,179 Payroll Road Maintenance 29.601 Payroll Drainage Maintenance 13,887 Payroll Library 8,962 Payroll Criminal Court 4,668 Various Various 11.894

$ 290.970

During thecourse ofoperations, numerous transactions occur between individual funds for goods or SCI vices rendered and tor amounts recorded incorrectly. These receivable~ and payables arC classified as due from olher fund~ or due to other funds in thc fund financial statements. The majority of interfund balance~ are expected to be repaid wilhin one year I'rom the dale of the financial statements as funds become available.

-28


NOle 6. Capital Assets and Depreciation

Capital asscls and depreciation aclivity as of and for the year ended December 31,2010 for rhe governmental aClivities is as follows:

Balance Balance

Capital assets not being'dcpreciated: Land

Ianuary I, 2010

$ 306,673

Im,Teases

$

Dc

$

cr~,scs

December 3 I, 2010

S 306,673

Capital asscts being depreciated: Buildings and improvemenls

Machinery and equipment Total capital asselS being ucpn.."C.:iatcd

$ 2.708.112 1,596.017

$ 6.304.129

$ 19,294 334.492

S 353.786

$ ( 258.882)

$( 258882)

S 2,727.406 3,671,627

S 6399033

Less accumul"ted depreciation for: Building~ and improvcmcntltl

Machinery imd equipment Total accumulated depredation

$ 1,171,138 2,720121

$ H91.259

$ 56,946 208.859

S 265.805

$ I

$(

258.882)

258,882)

S 1,228,084 2,670,098

S 3,898,182

Tota) capital assets being. depreciated. net $ 2.412,870 S 87.981 S S 2,500,851

Depreciation expense of thc Jury for lhe yc"rcndcd December 31, 2010 was ch:lfged to the following governmental functions:

General government $ 22,120 Public ,,,rely 19,801 Public works 183,691 Health and welfare 30,813 Culture and recrcalion 9,380

S 265,805

-29


Note 7. Long-Term Liabilities

The following is a summary of long-term obligation transactions for the year ended

December 31. 2010:

Balance· January I, 2010 Retirements

Certificates Bank of Lo,m Indebledness

$ 6,555 S 312.000 ( 6.555) ( 12,l)OO)

Capital Leases

$ 188,311 ( 106.583)

Compensated Absences

$ $ 28,514

( 28.514)

Totals 535,506

{ 213.112l

Balance December 31. 20 I0 /&$==..;.= $ 240,000 $ 81,194 i!!.$==...;.= $ 321.194

The following is a summary of the current (due within one year) and long-term (due in more than one year) portions of long-term obligations as of December 31,2010:

CcrtiriCiltes of Capilal

Indebtedness Leases Totals

Current $ 16,000 $ 61,865 $ 143,865 Long-lernl 164,000 13.929 111.929

S 240,000 $ 81.194 S 321.194

On December 31. 2005, the Jury issued $700.000 ofcertificates of indebtedness to a local tlnancial institution to pay lhe COSIS of acquiring and constructing improvements and renovations to the courthouse, including equipment, fixtures, and furnishings and to pay costs of i>suance of !he ccrti ticates.

The principal of the cenificates is payable annunlly on March I" over a period often years from the issuance date and bear inlerest at a rate or rates not exceeding 5% per annum. Interest is payable on March I" and September I" of each year. The certificates are secured by and payable from a pledge and dedication of the excess of annual revenues of Ihe Jury above statutory, neces>ary, and usual charges in each of the liscaJ years in which the certilicates are outstanding. In March 2008, the Jury paid the lasl two series of the certificates for years 2014 and 2015.

-30


For the payment of the principal and interest onlhe certificates, a special sinking fund was established with the regularly designated fiSl'al agentlxlnk of the Jury. As of December 31,2010, the Jury was in compliance with the funding requirement.

The annual requirements of the Courthouse Maintcnance Fund to amortizc the certiticates of indebtedness of the governmenUlI 'lctivities as of Dccember 31. 2010 arc as follows:

Year Ending December 31 Principal Interest Totals

2011 $ 76,000 $ 18.369 $ 94,369 2012 80.000 14.742 94,742 2013 84.000 6.431 90.431

$ 240.000 $ 39.542 $ 279,542

As ofDecember 31,2010, the Jury had two equipment capital leases in eflcet with original recorded amounlS of $298,687. The following is a schcdule of fulure minimum lease payments togdher with the pre~nt value of the net minimum lease payments 10 be paid from the funds:

Road Drainage Year Ending Maintenance Maintenance December 3 I. Fund Fund Totals

2011 $ 18,822 $ 51,212 $ 70,034 2012 __9"-,.4,,,,1......1 4.656 14,067

Total minimum lease paymenls $ 28.233 $ 55.868 $ 84, 101 Less amoums represenling interest ( 962) ( 1.346) -,(,-----",2.",30",,8,,-,)

Present vlllue of nel minimum lellse payments $ 27,271 $ 54,522 ;g,$~d18'l,1.!.l,7~93~

The Jury incurred and charged (0 expense $15,303 of imerest costs during the yellr ended December 31.2010.

-31.


Note 8. Pension Plan and Olher Pension Liabilities

Plan Description:

Substantially all employees ofthcJury are members of Parochial Employees' Retirement System of Louisiana (the "System"). a cost-sharing. multiple-employer defined benefit pension plan. administered by a separate board of trustees. The System is composed of two distinct plans. Plan A and Plan B. with separate assets lUld benefit provisions. All employees of the Jury arc members of Plan A.

Employee Eligibility Requirements:

All employees working at least 28 hours per week and all elected parish officials are eligible to participate.

Retirement Benefits:

Percent of Minimum Years of Fina I Average

Age Service Factor Si!!ill:x 60 10 3% 30% 55 :!5 3% 75%

Any age 30 3% 90%

Final-average salary is the employee's average salary over Ihe 36 consecutive or joined months thai produces the highest average. The System provides death and disability benefits. Benefits arc established or amended by state statute.

The System issues an annual publicly a,ailable financial report that includes financial statements and required supplementary information. The report may be obtained by writing Parochial Employees' Retirement System. Post Office Box 14619. Baton Rouge. Louisiana 70898-4619. or by calling (225) 928-1361.

-32

NOTES TO FINANClALSTATEMENTS

Funding Policy:

State statute requires covered employees to contribute a percentage oftheirsalaries to the System. As provided by R.S. II: 103. the employer contributions are determined by an actuarial valuation and are subject 10 change each year based on the results of the valuation for the prior fiscal year.

Under Plan A, members arc required by stale statute to contribute 9.5 percent of tbeir annual covered salary amI the Jury is required to contribute at an actuarially determined rate. The current rote is 15.75 percent of annual covered payroll. Contributions to tbe System also include one-fourtb of one percent (except Orleans and East Baton Rouge Parisbes) of tbe tues shown 10 be collectible by the tax rolls of each parish. These lax dollars are divided between Plan A and Plan B baseo proportionately on Ibe salaries of the aclive members of each plan. The Jury's contributious 10 the System under Plan A for tbe years ended December 31. 20 I0, 2009 and 2008 were $246,458. $182.848, and $183.994, respectively, equal 10 the required contributions for each year.

Other Pension Liabilities:

The Jury pays a portion of the salaries for employees of the registrar of voters and Hfth Judicial Dislriet Criminal Court. These employ<cs arc also covered by multipleemployer public employees retirement systems requiring employee andlor employer contributions. The Jury's and employees' comribulions 10 Ihe systems are considered immatcrial with respect \0 Ihe Jury and the benefit systems as a whole.

NOle 9. Residual Equity Transrers

Louisiana Revised Statute 15:571.11 require51hat onc-halfor any balunce remaining in the Criminal Court Fund at year end be tr:lOstcrred 10 the General Fund: therefore, $53,048 was r<corded as due to/from other funds and reported as a residual equity lransfer in the fund finuncial :-;tatements.

PUrl;uant to Louisiana Revised 5t:,lute 15:255. Ihe OtT-DUly Orneers Fund is 10 transfer to the Criminal COLIn Fund by January 31" of the tollowing year, all surplus monies. In January 20 10, S15,439 was lransferrcd from the Orr-Duty Ofticers Fund 10 the Criminal Court Fund. Accordingly, for lhe year ended December 31,2010. $15,439 was reported as a residual equily transter.

·33

NOTES TO fiNANCIAL STATEMENTS

Note 10. Operating LeDses

As of December 31, 2010, the Jury had entered into eight equipment operating leases having initial or remaining noncancellable terms in excess of one year. The annual commitments under these leases are as follows:

YeDr Ending December 31, Totals

2011 S 247.244

2012 200.357

2013 70.626

2014 29.645

$ 547.872

The Jury made rental payments of $94.030 from the Road Maintemmce Fund and $136,240 from lhe Drainage Maintenance Fund during the YC<lr cnded December 31, 2010 undcr these operating leases.

Note II. On-Behalf Payments for Salaries

For the year ended Dceember 3\, 20 I0, the Jury recognized revenues and ex~ndilures of $15.226 in salary supplements and related payroll taxes from State of Louisiana with the salary supplements being paid to justices of the peace and constables.

NOle 11. Contingencies and Risk Munngement

The Jury is exposed 10 various risks of loss related to Ions; thert of, damage to. and destruction of assels; errors and omissions; injuries to employees; Dnd natural disasters. The Jury c=ies commercial insurance for all risks of loss. including worker.;' compell~ati()n. The.re h.we be~n no ~ignificant reductions in insumnce coverage from co\'erag~ in the prior year. Settlements have nol exceeded insurance l"OVen1gc for each of

the past three tiscal yems.

As of Decembcr 31. 2010, there were two pending Or threatened litigations invotving the Jury. As of me dale of this repon. legal counsel for the Jury advised that no danmge amount was staled in the inilial pleading, of one case and a response h" been ftled with the Equal Employment Opponunily Commission regarding the other case.

•34

NOTES TO FJNANCIAL STATEMENTS

The Jury participates in numerous state :md federal grant programs, which are governed by variOUS rules and regulations of the gruntor agencies. COS" charged to the respective grant programs are subject to audit and adjustment by the grantor agencies: therefore, to the extent that the Jury has not complied with the rules and regulations governing the gmnts. refunds ofany money received may be required and theeollectibility of any related reeeiwbic. if any. as of December31. 2010 maybe impaired, In the opinion of the Jury's managemen1, there are no known signilieanteontingent liabilities as of December 31. 20 I0 relating to compliance with the rules and regulations governing the respective grants; therefore, no pmvision has been recorded in the accompanying financial statemenlS for such contingencies.

Note U. Commitmenls

In May 2011, the Jury expended llilothe" approximate $200,000 to finalize the Severe Repetitive Loss Program originally funded back in 2009.

The Louisiana Department of Natural Resources en1cred into an agreement with the Jury to ",sist with implementing a lighting pr~iect totaling S 139,000. As of December 31, 2010. only $17,375 of the funds had been expended, The remaining funds must be expended by March 31, 2012.

The Jury's legal coun>c1 has advised that the Jury may expect to receive $500,000 in 2011 and another $500,000 in 2012 for road damages caused by a pipeliner contractor. Damages will be received but the exact amounts are still being negotiated as of the date of this report.

On Decemkr 3, 2010. the Jury entered into a community development contract for a S382,670 streel project. As of December 31, 2010, the Jury had incurred project co~t of only $31,367.

Note 14. Subsequenl Events

Subsequent events were evalu;oted through M;oy 24, 2011. which is the day the financial sMoments werc avuilable to be issued. and it wa, determined that no significant events had occurred requiring disclosure.

-35


Note 15. New Accounting Pronouncement

In 2009. the Govemmentnl AecuunlingStnndards Bonrd (GASB) approved Statement No. 54, Fund Balance ReporTing {Illd Govenrmenral Fund Type DeJinirions that requires fund balnnces for the Jury's governmental funds 10 be displayed in various classifIcations depicting the relative strength of the spending constraints placed on thc purposes for which resources may be used. The provisions of Statemcnt No. 54 must be implemented by the Jury forthe year ending Decembcr 31, 20 II and implemenuuion will require the Jury to n:state e.isting fund bnlnnces for the governmental funds.

-36·

REOUIRED SUPPLEMENTARY INFORMATION (part 20f2)

RICHLAND PARISH POLICE JURY RA YVILLE. LOUISIANA

SCHEDULE OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)

GOVERNMENTAL FUND· GENERAL FUND Forthc Year Ended December 31. 2010

Vadanct Budget Favorable

Original Final Actual (Unfavorable) Revenues:

Taxes S ~81.000 $ 651,774 $ 688.990 S 37.216 Licenses and permits 99,500 117,500 118.323 813 Intergovcrnmenti.ll 313.500 527,603 530,756 3,153 Fccs.charge~.and

commi~sions for services 18.500 47,481 37.91 J 9,570) Fines and forfeitures 4.000 5.090 5.091 1 Interest and misccllnnl'Ous 5,500 2.851 11.286 1.435

S 812,000 $ 1,3)9.299 $ 1.392357 $ 31.058

Expenditures: Current

Genera] government: Lcgisl'lli\'c $ 210.130 $ 177,091 $ 188.994 $( 11.9(3) Judicial 67,701 63,356 63.943 ( 587) Elcclions 32.804 24.683 24.666 17 Fin;,mcc and administrative 122.036 181.572 172,972 8,roO Other 39,16\ 35,743 46,312 W,569)

Publ ic salely 281,404 283,783 533.290 249,507) Health and welfnre 73.354 73,893 72,743 1,150 Economic de\lelopment and assistallce IUO.OOO 45.031 48.531 3,50m

Debt ,l;ervice 4.174 4,174) Capital outlay 5.()()O , 16.381 53,251 263,130

S 938.690 :> 1.201531 $ 1.208876 $( 7,343)

(continued)

-37·


SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)

GOVERNMENTAL FUND - GENERAL FUND (Continued) Forthe Year Ended December 31, 20 I0

E:<cess (ddiciency) of revenues over e:<pt:nuitures $(

BuOriginal

116,6\1()

dget

S

Final

157,766 S

Actoal

183.481

Vnriance FlJyorJ.ole

(Unfavorable)

S 25,715

Other financing sources (us,cs.): Opcralin. IrJn~lCr. in (0111) 20.000 811 ( 154) 965)

Net change, in fund balances $1 96,(90) $ 158,577 S 183,327 S 24.750

Fund balanCC'5 - Ocginning (non-GI\AP 'md GhAP budgetary basis) 81.690 191,690 175,739 ( 15.951 )

Residual equity transfer in 11.000 23.122 53,048 29,926

Fund balances - cnding (non-GAAP budgetary basis) $ 1 373.389 $ 412.114 $ 38,715

Adjustments 10 generally accepled 3ccounling principles: ReVenlJl~ a,-,cruals Deferred revenliC DCeruals Expenditure .ccmal.

145.242 123.386)

13.615

Fund bl.llance - cnding (GAAP l'msis) $ 447.585

-38


SCHEDULE OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS;

GOVERNMENTAL FUND - ROAD MAINTENANCE FUND For the Year Ended December 31.2010

Revenues; Taxc~

Intergovernmenfal

Fcc~"ha~es.and

cmnmi~sionl' for services Inwrcq and misccllaneou!i

Expe.ndilures: Current:

Publi" works Debt service Capiml Olillay

Excess (deticiency) of revenues over e'tJXnditure$;

O\hcr financlng. sources (uses): Operating lr;Ul<ters in (OUl)

Net ch;:mges in fund balances

Fund !>.11"nces - beginning (nun-GAAP and GAAP blldgelary bas;,)

Fund balances - ending (non-GAAP budgel:lry basis,

Adjuslmcnts to !!cncrally accepted tl.cl:ounting principles: RCVf'nlU~ accrual'\ Expenditure a"ruals

FUllo balance - ending (GAAP basis)

Budget Original Final Acmal

Variance w

Favorable (Unfavorable)

$ 2.042.987 522,500

$ 3,157.984 552,599

$ 3,099.206 531.483

$( (

58.7781 21, 116)

573.881 16.499

563.881 33.410

( 10.000) 16,911

$ 2.~65,487 $ 4.300.963 $ 4.227.980 $I 72.983)

$ 3.530.154 $ 4,433.942 $ 4.373,799 $ 60,143 46,223 ( 46,223)

J04.5IXI 339.351 31.l052 26,299 .$ 3,ij34,6,'4 S 4773.293 $ 4.7'33,074 S 40.219

$( 1.269,/(7) $( 472,330) $( 505,094) S( 32.764)

( 2m,OOO)

$( 1,469,167) $( 472,3301 $[ 505.094) $( 32,764)

1.469,167 I 279,000 2.333.646 1.054,646

S $ 806,670 S 1.828.552 .$ 1.021.882

13.567 43,(33)

S 1,798.486

RICHLAND PARISH POLlCE JURY RAYVILLE. LOUISIANA

SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)

GOVERNMENTAL FUND - DRAINAGE MAINTENANCE FUND For the Year Ended December 31, 20 I0

Variance -Budgct Favorable

Origil131 Final Ac,ual lUnl(l\'ornble) Revenuc~:

T<lx.es S 1.()23,080 $ 1,602,099 $ 1.602,099 $ Intergovernmel1~l1 72,500 Interest and mist'clluneou!i 2902 2,902

S 1.09';,580 $ 1.602.099 $ 1.605,001 $ 2 9(r.!

Expenditures: Currelll:

Publk works $ IA77,5KO S 1.156.970 $ 1.245.yg I $I 89,011) De.bl ",rvice 65.178 ( 65,178) Capila' ou,lay 264,000 199915 3.750 196.165

$ 1.741.580 $ 1,356,885 $ 1.3\4909 $ 41976

N~t changes in funo balances $( 646.(00) S 245.214 $ 290.092 S 44.878

Fund balances - beginning (non-GAAP and CiAAP budFtary b,bi,) 646JXXI 842,500 916JKl!! 73,509

Fund balances - cnding lnon-GAAP budgetary basis) $ S 1.087,714 S 1.206.101 S 118387

Adjustments to generally accepted occounting principles: Ex.pc:ndilure Jccruals 8.6611

Fund balance - ending (GAAP basi,) $ 1.1 ~7A411

-40


SCHEDULE OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES, BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)

GOVERNMENTAL FUND - LIBRARY FUND For the Year Endcd December 31, 2010

Variance -Budgel FUVOTOlble

Orieinal Final Actual <Unfavorable) Revenues: T;:lxes $ 500,000 $ R17,000 $ 849,800 $ 32.800 Imergove:mmcmal 69.729 67.656 64.891 ( 1,765) Fees. charges, and commission!:l for servkes 2.500 2.500 3.330 830 Fines ;md forfciture.'lO 1.250 2.950 2.109 ( 841) Inlcresl and miscellaneous 31.800 26°00 7.659 ( IK~41)

$ 60S 279 S 9 I6,306 $ 927789 S 11.483

EJIO(X."mJiture:-: Current:

CUllUJ"C. ano recreation S 833,939 $ 1.523.046 $ 709.143 S 813.903 C..piral outlay 67.000 278CJ (,4,220

S 833.93<) $ 1.590.C146 $ 711913 $ 878.113

E.~ccss (deficiency) of revenues over expenditures 5( 228,660) $( 673.740) $ 215.866 $ 889.606

Other financing sources (u,",,): Operaliog tmnsfers in (ourI 12.0001 ( 12JXlO) 12·000

Net ch,lnges in fund haJiJnce~ $( 240,(60) $( 685,740) S 215,866 S 901,606

Fund b..lances - beginning (non-GAAP and GAAP hudgelary basis) 566 169 685.740 663.100 22.640)

I'und Ixllances - ending (nnn·GAAP budge",ry basi') 325.509 S $ 87R.966 $ &78.%6

AdjuslmenlS to genc:mlly acc~ptcd

aceuuntlog principles: Revenue accruals 141,575 Deferred revenue accruOlls 135,37/1)l. E,pcndilUre accruals ( 2,670)

Fund bol:lflCC . cnding (Gi\i\P h..,is) $ RR2495 -41

OTHER SUPPLEMENTARY TNI'ORMATION


COMBINING BALANCE SHEET - NON-MAJOR GOVERNMENTAL FUNDS December 3J• 20 I0

Total Non-Major

Health Off-DUlY Criminal CourlJ'1ousc CapiUlI GovcrnmcrllaJ

1J.ni! Officers Qll!rl M:tinl~J1iITlCC ~ Fundl

ASSETS

C.,h $ 353.185 $ 20,621 S 101.655 S 12'2.839 S $ 598,906

Ccnific:lIC9 o( dClXisil 5,613 5.613

Rccl:i\lJblc~ 114,116 1.493 IS,c31 2,189 31.367 ~21,396

RC~lrktc:d "~5cl:

Cash 107555 101.555

T01:J.I.15sel~ $ "11514 $ 22,110 S 110886 $ 2~~.58J $ 31.367 S 939,470

LIABILITIES AND FUND BALANCES

LiJ.hj(j(ics: ACCl1UJ'l(!) payab~ S ~.(j56 S $ 3314 $ 5.161 S 31,367 $ 42,504 Due 10 other funds 1i.133 6:l.524 \0,543 80.200 Deferred TCYCIlue 114,1\6 174,116

Property taxes prJ ill under proll:SI 6.513 6.533

TUfa) \iubiJitics S 1~8,X3K $ S 6/i,838 $ 16.310 $ 31.361 S 303.353

Fund b,illalll"C~:

Re~rvc:d (or debt .service: $ - S· S - S J<l7.555 $ $ 107.SS5 Unrc!>Cr"Iet.l and undcsi£.n:J.lctl __J44,67(, ~21.W 53JI48 108.118 ~'1K5tl:'

Total fund h.:llancc.(. S 344,616 S 2") I'm $ 51,048 $ ~16273 S 636.117

TOlalliJhililics ..md fund b3lilm:t:s ,~ Sl1514 S ~2 I:?O $ 119,886 S 231.SH3 S 31.367 $ 919.41U

-42


COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES· NON-MAJOR GOVERNMENTAL RlNDS

Forthe Year Ended Dccemb<:r 31,2010

TOla)

Non-Major 1I"',llh OIT-D"'y Criminal Courthouse C.pll.1 G\lVcrnmcntal Unil Officers COUI'l ~hinlt:nam::C' frniccIs Funds

Revenue!'!: T:..L't~ S 149.93& $ $ $ 33&.&91 $ S 4&&,829 Inlergovernmental 13.846 17,375 31.367 62.5MM Fr.:cs. tharges. and c(lnlmi!tSions for Sc:Tvkcs Fines Jnd forlC'itun::s 20.134 293.&29 3)4.563 Interest and miscellaneous 1.049 36 1.142 1.60' 3,830

S 1M,833 S 20.770 S 29-l.97 I $ Vi7.M69 S 3U67 $ 869,810

ExpcnJilUrl.·!'l: Curren!:

General govcmlll':nl: Judicial $ $ 2,95lJ $ 2.":!.S~2 $ $ S 2555.12 Olh~r 273.226 27.3_~26

Puhlic work~ .1.626 3).~2) 35,147 Ilcalth and welfare 104.056 104,056

Debl SCTviu:. 84.866 84.866 $ I();I.OS!' S 2.9\0 $ :!52 58~ $ 361.718 $ 31521 75' M27~

Exccl'!- (dclidcncy) of Ic"·t:nuc.... llVCT c:\pc'ndilulcS $ (-1..1.777 S 17.M2U S 42.3~Y $< 3.8~9·1 $( 154) $ 116.983

Ocher finandng M'lUn:Cs.: Operating ltansrcrs in 154 1~4

NCl ~hilngc!'i in fund D.llant:es S f$.'.777 ~ 17.S}O S '1"2••1K9 $, .1.X49J S S 117.137

fum) bahll1cc~ - bc&innillg .!X:'.89l) 19.73') 4~L!(Il) :!20.12.2 572.{)~H

R~!o\idual cquily Irunslcr:in (OUIl 15,4391 ( .17 (ij~) 5JJ)48.

fund hillall~;c!' • ~nding $ 344,676 $ 22.I~O $ 53.04S $ 116.273 S ~ 636 In

-43

RICHLAND PARISH POLICE JURY RAYVrLLE. LOUISIANA

SCHEDULE OF JURORS' COMPENSATION For the Year Ended December 31, 201 0

The schedule of compensation paid to jurors is presented in compliance with House Concurrent Resolution No. 54 of the 1979 Session of the Louisiana Legislature. Compensation of the jurors is included in the legislative expenditul"Cs of the General Fund. In accordance with Louisiana Revised Slutute 33: 1233, the Jury h" elected the monthly payment method of compensation. Under this method. the jurors each received $1,000 per month as follows:

Jesse Washington $ 12.000 Willie Tatum 12,000 Steve Lofton 12.000 Ronald Gilley 12,000 Judy Green 12.000 Kenneth Me Kay J2,000 Althan Smith 12.000 Sharon D. Gce 12.000 William Moo,.., 12,000

Total jurors' c'lJmpcnsalion $ 108.000

-44

RICHLAND PARISH POLICE JURY RAYVll.LE, LOUISIANA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2010

Pass-Through Federal Entity

Federal GrantorlPiJ.<s-Through CFDA Identifying GrJntorlProgram Title Number Number Ex penditurcs

Department of Homeland Securityl Homeland Security and Emergency Prepnrednessl Dis:l.<ter Grants· Public Assistance 97,036 1603-DR-LA. Project 0002 $ 15.180 Disaster Gr.ultS - Public Assistance 97036 1668 and 1786 155.391 Hazard Mitigation Graut 97,039 HMPG 1603-022-0003 200,075 Ha7.ard Mitigation Granl 97,039 1603n-083-0001 30,000 EMPG 2008, 2009. and 2010 97,042 Various 60,959 SHSP 2008 and 2009 Equipment 97(}67 Vnriolls 49,278 Severc Loss Repetitive Program 97,110 SRL-PJ-06-LA-2009-OO6 95,954 Total Department of Homeland Security $ 606,837

Depanment or Housing! Louisiana Division of Administration! Community Development Block Grants 14228 B-1O-DC-22-0001 31,367

Department 01' Energyl Louisiana Department of Natural Resourcesl

ARRA Re,new Louisiana Energy ElIiciency and Conservation Block Grant 8l.m EEA-1039 17.375

Towl espenditll«S of federal awards ,$ 655.579

See nOle to scheLlule of expenditures of feLler'll awards,

45

RICHLAND PARISH POLlCE JURY RAYVlLLE, LOUISIANA

NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended Decembcr 31,2010

Note I. Basis of Presentation

Thc schedule of expendilures of federal awards includes the federal grant activity of the Jury and is being presented on the modified accru:!1 basis of :lCeounting. The infonnalion in !his scheuu!c is presented in accordance with the ICquirements ofOMB Circular A- \33, AuailS of Swre.l. Local Govemlllellis. and Nan-Profil Orgllllizalimr.\·, Thcrefore. some amounts presented in this schedule may differ from amounts presented in. or used in the presentation of, the financial statements.

-46


INDEPENDENT AUDITOR'S REPORT ON INIERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMEQ IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS


We have audired the financial statemems of lhe governmental activitics. each major fund. and the aggregate remaining fund infonllation of Richland Parish Police Jury (the "Jury"). as ofand for the year ended December 31, 20 I0, which collective! y comprise Ihe basic financial statements of the Jury's primary govcrnmenl and have issued our report thereon dated May 24. 2011. 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 G,werlllll£1lI Alldilillg Sl<l1ldnrd', issued by the Comptroller General of the United States.

Internal Control Over Financi'll Reporting

In planning and pcrformingour audit, we considered theJury' s internalconlrol over tinancial reporting as a basis for designing our aUdiling procedures forthe purpose ofexprcssing ouropinions on the financial stalements. but nol for the purpose ofexpressing an opinion on Ihe elTectiveness of Ihe Jury's imemal comrol over linancial reporting. Accordingly, we do not express an npinion on Ihe effectiveness of the Jury's internal conlrol over limll1cial reporting.

Our consideration of imc",al comrol over tinaneial reporting was for the limiled purpose described in Ihe preceding paragrJph and was not designed to idenlify all deficiencies in internal conlrol owr /inaneial reponing that mighl be significanl detidencies or material weaknesses and therefore. lhere can he no assurance th,u all deliciencies, significanl deficiencies. Or malerial weaknesses have been identi ticd. Howevcr, as d...,..;ribed in the accompanying schedule of findings and questlonctl costs, we idclllified certain dettc'cncies in intemal control ovcr Iinancial reporting Ihal we consider 10 bc material weaknesses.

-47Certified Public Ac('ounr;.\nt~ • A. Pr()f(;s!-iional Corporation

70 J E"s! M"di'on 1\venue' Bastrop. Louisiana 71210 Telephone 31 ~-281-44')2 • Fa.\ J I1\-28 1-4jIIP • E-mail [email protected]

A deficiency in internal control exists when the design or operation of a control does not allow management or employees. in the normal coun;e of perfonning their assigned functions, to prevent, or deteet and correct misstatements on a timely basis. A material weakne.ss is a deficiency. or a combination of deficiencies. in internal control such that there is a reasonable possibility that a material misstatement of the Jury's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies describe;! in the accompanying schellu!e of findings and questioned costs as items 2010-1. 20 I0-2, and 2010-4 10 be material weaknesses.

Compliance and Other Malters

As pan of obtaining reasonable assurance about whether the Jury's financial statements are free ofmaterial misstatement. we perfonned tests of its compliance with cenain provisions of laws, reguh\tions, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination offimmcial statement ;unounts. However, providing an opinion on compliance witb Ibose provisions was not an objective of our audit and. accordingly, we do nol express such an opinion. The results of our t",ts disclosell instanccs of noncompliance or otber matters Ihat are required to be reported under Government Auditing Standards and whicb arc described in tbe accompanying schedule of lindings and questioned cosls as items 2010·2 and 2010-3.

Tbe Jury' s responses to tbe tindings identified in ouraudit are described in the accompanying schedule of findings and questioned costs. We did not audit the Jury's responses and, accordingly, we express no opinion on them.

This report is intended solely for the infomlation and use of management, juron;, otbers within the Jury, rederal awarding agencies. and pllss-tbrough entities und is not imcndellto be and should not be used by anyone olher lban these specifled panies. However, under Louisiana Revised Statute 24:513. this repon is distributed by Loui.iana Legislative Auditor as a public document.

lsi Hill. III:i"', & Co.

May 24. 201 I

-48·


INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REOUIREMENTS THAT COULD HAVE A DIRECf AND MATERIAL EFI'ECf ON EACH MAJOR

PRQGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133


Compliance

We have audited lhecompliance of Richland Parish PoliccJury (the "Jury"). with thc types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Comp/ill/lce SlIpp/emell/ that could havc a dircct and material effect on each of the Jury's major rederal programs for the year cnded December 31. 2010. The Jury's major feder.tl programs are· identitied in the summary of auditor's r"sulrs section of the accompanying schedule of Iimlings and questioned costs. Compliance wilh the requirements orlaws. regulations, contracts. and grants applicable 10 ils major federal programs is the responsibility oflhe Jury's management. Our responsibility is to express an opiniun 011 lhe Jury's ct1lllpliance based on Our audit.

We conducted our audit uf compliance ill "ccurdance with auditing standards generally acccpted in the United Stales of America; the standarus applicable to financial audits contained in G",'enmrelll AI/ditillg SlIIndards. issued by Iile Cvmplroller General oflhe Uniled Statcs; and OMB Circular A-133, AI/di,., of Stotes. LoCli/ G,,,.emmCl/ts, al/d NOli-Profit Orgallizmion•. Those standards and OMS Circular A-133 require thal we plan alld pcrfonn the audit to obtain reasonable assurance about whether noncompliance with thetypcsorcomplianee requirements referred roobovc that could have 0 direci and material effect on a major federal program occurred. An audit includes examining, 00 a le.t basis. evidence about the Jury's compliance with those r~qlliremen[l; and pcrforming such other pnx:edurcs as we con,idered nccessary in the circumstances. We believe thaI our audit pruvides a rcasonable basis ll" our opinion. Our audit does not provide a legal detcrmination of the Jury's compliancc with those rCljuircments.

In our opinion, the Jury, complied, in all maleri:d respects, with the compliance requirements referred to above that could have a dircct and mattrial effect on eacb of its major federal programs lor the year ended December J I. 20 IO.

-49Ccrtilitd I'ublk Aceounlnnls' " Profe,sional Corporation

701 East Madison Avt:lIuc· Ba.,trop. wuisian3 71220 Telephone 318-281 ·4492 • F'L' 31 R-2R 1-4087 • 1i-lIlail hi lJill/.ina@bdl"""h.nOl

Internal Control OverComoliance

Management of the Jury is responsible for establishing and maintaining effective internal control ovc.r c.ompliance with requirements oflaws, regulations, contracts. and granLs appl icable to federal prognuns. In planning and performing our audil, we considered the Jury's internal conlrol overcompliance with Ihe requirements that could have a direcI and material effect on a major federal program in order to determine the auditing procedures for the purpose ofexpressing our opinion on compliance and to tesl and report on internal control over compliance in accordance with OMB Circular A-133. but not for the purpose of expressing an opinion on the effecliveness of internal control over compliance. Accordingly. we do not e.press an opinion on the effectiveness of the Jury's internal control over compliance.

Our consideration of internal controt over. compliance was for the limited purpose descrihed in the preceding par:'graph and was not designed to identify all deficiencies in internal control over compliance thaI might be signitieant deficiencies or material weaknesses and therefore. there can be no assurance thaI all delieiencies, significant delieieneies. or malerial weaknesses have been identilied. However, as discussed below, we idenlilied certain delieicncies in inlernal control over compliance that we consider to be material weaknesses.

A dericien,'y in internal control over compliance e.isls when Ihe design or operation of a conlrol ovcr compliance dues not allow management or employees. in the normal course of pelt'onning their assigned funclions, 10 prevent. or detect and correc!. noncompliance wilh a type of compliance requirement of a federal program on a timely basis. A material weakness in inlemal control over eompliancc is a deficiency, or combination of deficiencies. in intemal conlTol over compliance, such thaI there is reasonable possibility that material noncompliance with a type of compliance requirement of a l<:deral program will not be. prevented. or detect~d and corrected. On a timely basis. We consider Ihe deficiency in intemal control over compliance desuibed in Ihe accompanying schedule of findings and questioned costs as item 2010·5 to be a material weakness.

The Jury's response to Ihe findings identified in our audit are described in the accompanying schedulc of lindings and <juestioned costs. Wc did not audit Ihe Jury's response and, aeconlingly. we express no opinion On the rcsponses.

This report is intt.'mJcd solely for the information •.lntl lise of management. jurors. others within the Jury, federal awarding agencies. and pass-through entilies and is not intended In be and should not be used by anyone other Ihan these specilied parties. However_ under Louisiana Revised Slatute 24:513. this report is di<tributed hy Louisiana Legislative AudilOr as a public documcn!.

lsi Hill. l/l~;/l" & Co.

May 24.2011

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SCHEDULE OF FINDINGS AND QUESTIONED COSTS WITH MANAGEMENT'S RESPONSE AND PLANNED CORRECTIVE ACTION

As of and for Ihe Year Ended December 31, 20 t 0

We have audited (he financial statements of the governmenul' aCliv;ties, each major fund, and the aggregate remaining fund infonnation of Richland Parish Police Jury (lhe "Jury"), as of and for lhe yellr ended December 31, 20 I 0, which colleclively comprise the basic financial stalements of the lury's primary government and have issued our reporllhereon daled May 24, 2011. We conduclcd our audit ill accordance with audiling slandards genemlly accepled in the United Stales of America; the standards applicable to linaneial audits contained in Governmel/t AI/dilil/g Stalldard." i>sued by the Comptroller General of the United Slates; and the provisions of OMB Circular A-133, AlIdir.. o!Starcs. Local Goven/mellls. al/d NOli-Profit Orgallizations. Our audit of the financial statemenlsa" of December 31,20 I0 resultcd in alllinqualified opinion on the primary government's governmental aetivilies, each major fund. und the aggregate remaining fund infoonalion. An adverse opinion was rendered on the uggregatc. discretely presented component units.

S..;tion I . Summary of Auditor's Reports

~. Report on Internal Control Over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Slalements Performed in Accordance with Govemmetll A/ldiri/lf( Stalldards

Inlernal Control Significant Deficiencies iii Yes 0 No Material Weaknesses Iil Yes tJ No

Compliance Material to Financial Statements III Yes 0 No

b. Report on Compliance With Requirements That Could Hi.lve u Direct and Mi.\tcrial Effect on Each Major Progmm and on Inlernal Control Over Compliance in Accordance With OMB Circular A-133

Type of Opinion on Compliance Unquuliticd .. Qualif,ed tJ

for M~ljor ProgrUl n~ Disclaimer 0 Adve",e [J

Internal Control Significant Deftciencies lBI Yes t:l No Material Weaknes~s Iil Yes tJ No

Arc lhere tindings requiretl m he reported in accordance with Circular A.133, Section .510(a)'> Ill! Yes 0 No

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c. Idcntification of Major Programs: CfDA Number 97.036 Disaster Grants - Public Assistance

CFDA Numbcr97.039 Hazard Mitigation Grant

Dollar threshold used to distinguish between Type A and Type B Programs $300,000 Is the auditee a 'Iow risk' auditee, as defined by OMB Circular A-D3? Yes IlII No

Section [[ - Financial Statement Findings

2010-1 Inadequatc Scgregation of Duties (initially cited in first audit conducted by our firm as of and for the two years cnded December 31, 1992)

Criteria: Adequate segregation of duties is essential to a proper internal control struclure,

Condition: The segregation of duties is inadequate to provide effective internal control.

Cause: The condition is due to economic limirutions.

Effect: Not determined.

Recommendation: No action is recommended.

Management's response and planned correclive at'lion: Management does not have enough empluyees to adequately

segregate the duties: however, changes have bcen made· in the office 10 help ensure a system of checks and halances.

2010-2 Improvement of Internal Conlrols and Compliance (initially cited as of and fm the year ended December 31. 2(0))

Criteria: Management is responsible for establishing and implem~ntil1g

internal control policies and procedures thm provide reasonable assurancc tnat asset>; arc ~afegllarclcd against loss resulring from unuuthorized use and lhat transaclions ;,u-e execuled in accordance with management's authorization.

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Condition: The Jury adopted another policy manual elTective January 1,2011 that addresses onlyemployee mailers. All employees of the Jury arc not clear ,L' to the precedence of this manual over the previously adopted manuallhat addresses numerous policies and procedures or even if the previous manual is still authoritutive.

A police juror has been requested by the Jury's legal counsel to relUrn to the Jury for bidding and selling again a van thatlhe juror came into possession during 2009 under queslionablceircumstances.

The Jury's OEP director serving in 2010 let for bids. via the Jury's orticial journal, Ihe purchase of I J generators without the jurors' approval. A purchase order for the generators COSling $200.075 was issued and signed by the OEP direclor and assistant secretary/treasurer even with the vendor noting in writing on Ihe hids that they did not meet OEP (funding source) specifications. The jurors voted in Junc 201 0 to request that the vendor meet or exceed the specificalions listed on the specification sheets as advenised or tOme and ger the generators that were delivered. No evidence was provided that the vendordid ordid not meet the specifications bdore the generators were actually paid for in July 2010.

Thc OEPdirector serving during 2010 did not provide, as rcquested. documentation supporting other local governmental enlities taking possession of approximately $40.000 of mdios purchased with federal funds during 1010.

No fonnal action has been taken by the Jury, as recommended in writing by the Assistant District Anorney, as to the rehiring or termination of an employee that had previously heen suspended in 2009.

While performing \h" current audit. the audilor was ~dvised that neilher Ihe Jury nor lhe Assistant Dislrict Anomey I,,,d inquired timher as to written notification d~ted January 30, 200~ from an Assistant Attorney General 10 the Jury lhat an investigation was being made into the "possible misllse of governmental material" regarding a gravel situation. Neither was any funher inlormation available concerning an incident/discipline report dated August 17. 2009 tilcd describing a Juryemployee using aJury-owned bulldof.cr 10 spread spOil on his prorcrty.

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Cause:

Two other possible misuses by two individual jurors were brought to the auditor's attention in early 201 \ at which time the Assistant District Attorney was advised by the auditor of the reported allegations. Upon inquiry of the Assistant Districl Attorney at the beg.inning of the actual audit fieldwork in May 2011, no investigations had begun. Additional evidence obtained while performing the audit procedures relative to the two situations and another recent allegation of fraud involving a third juror has been provided directly 10 the Assistant District Attorney.

To lest compliance with Ihe Jury's policies and procedures (mentioned also in the tirst paragmph of this seclion) and the Parish Transportation Fund Act, work order.<, work sehedulc.s. work requests, usage reports, etc. related to several different projects were requested from the parish road nmnager but very limited infonnation was provided, none sufficient to determine compliance.

The Jury did not fomlally adopt the multi-year capital road improvement plan nor has the Jury adopted a plan for roads in need of major maintenance by using the exact procedures outlined for the capital improvement road plan, both mandated by the Jury's slated policies and procedures.

Out of 13 individual purchases oiequipment during the period under audit, each costing between $10,000 and less than $30,000. documentation that at least three tclephone or facsimile quotes were mad. availablc tor only seven pieces of equipment. Neither was evidence made available that the other equipment was purchased under ,t"le contract Ihereby avoiding the requirement to obtain al least three quoles.

As the result of unresolved findings \Iolcd in the Jury's lasllwo audit reports. the Legislative Auditor is requiring the Jury to have certain agr~cd-upon pnx:edures performed 10 test its internal controls uno compliance with laws nnd regulations. A repon on the results of the procedures perfonned is due to the Legislalive Auditor's ollice nO laterth"t August 31, 20 II.

Employees of the Jury (including Ihe jurors) have not accepted the value of such internal control procedures and the possible consequences of noncompliance.

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EITect: The failure to establish or to adhere to e~tablished intern,l controls or to comply with cen,in provisions of laws, regulalion~. contract'. and gmnt agreements could result in a loss of assets from unauthorized use or disposition or from trnn~actions thai are not in accordance with management's authorization.

Recommendation: The two policy manuals in etTect should be revised into one with strict adherence to all standing policies being mandated.

The Jury should immediately take po~~es~ion of the van.

Legal documentation should be obtained from each local govemment;.ol entity in posses>ion of the radios and generator~.

When thejuro~approve cenain actions. evidence ~hould be retained documenting that such actions were taken.

Recommendations of the lury's legal counsel and Legislative Auditor should be taken under advisement and formal action taken if ne<:essitated.

In accordance with LA R. S. 24:5~3. an agency he,d of an auditee who has actual knowle{)ge of any misappropriation of the publit· funds or assets of the agency shall immediately notify, in writing,the Legislative Auditor and the Di~triet Attorney. Agency head means the chief executive or administrative officer of an agency or any member of a hoard ur commission who exercises supcrvi~ion over the agency according to LA R.S. 42: 1102.

Appropriate actions should be taken by the Jury upon receiving the re~ull~ of the investigations hundled by the local district attorney's and a!lomey genem!'s oniees.

The provisions of [he Pari~h Tran~portalion AC:I Fund should b~

strictly coml,lied with to avoid possible loss or revenue sources and such compliance be documented and retained. The Legislative Auditor's website has readily available very pcnin~nl infonnation and suggested forms. schednles, etc. relutive to not only this act but many other areas of int~re~t to the Jury.

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M~lnagemcnl's

response and planned corrective action:

In accordance with lhe Public Bid Law (LA R.S. 38:2212.11, purchases of mmerials and supplies totaling between $10,000 and less thm 530,000 requirc obtaining al least three telephone or facsimile quotes, obtaining wrillen confimllltion of the aecepled offer, and nolation oflhe reason for rejection if the lowest bid is not accepted.

Revi~ions will be made to combine the two policy and procedure manuals into one. Title to the van has been returned to Ihe Jury but not the van itself. The Jury is trying to obtain ducumentmion from the stalC funding agency as to those in possession of the radios. The Assistant District Altomey advised the Jury to pay forlhe generators. The suspended employee WaS not fired. The employee was ordered by a supervisor 10 spread the spoil. The Assistnnt District Allomey has either referred the allegations 10 the Richland Parish Sheritrs Office or is still revicwing them irllernally. Compliance with the Jury's policies and procedures and the Parish Transportation Fund Act is under review by the Jury's labor commillee. The Jury will adopt a multi-year capital road improvement plan as mandated.

2010-3 Repayment of Amounts Due to Olher I'ullds (initially cited as of and for the year ended December 31. 20041

Criteria:

Condition:

Deposits to and expenditures from individual funds should be restricted to those amounts authorized by state statutes, tax propositions. budget ordinances. and management's authoriwlion.

Amounts have been recorded as payable to other funds resulting from deposit~ being m"de to or payments being made from incorrect funds, coding errors. and for re,idual equity transfers required by law.

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Cau,e: The majority of the doll'lf amounts recorded as being payable to Olher funds as of December 31. 2010 resulted from transfers being made only from the Road Maimenanee and Drainage Maintenance Funds to the checking accounl from which health insurance premiums were being paid for all funds. Of the tolal 5290,970 interfund amoums recorded as of December 31.2010, approximately $90.000 was allributable tothe paymenlofthese premiums. Another approximate 570,000 was allributable to amounts owed to the Payroll Fund for 20 I(} retirement contributions that wcre recorded as current expe",;es in the individual funds bUl not actually transferred 10 the Payroll Fund and in lurn paid to the retirement system unlil January 20 II .

Effect: The affected individual funds should have access to the amounts to which they are legally emilled.

Recommendation: As funds become available, amounts due to other funds should be repaid.

Management's responsc and planned correelive aclion: Funds will be reimbursed.

2010·4 Imernal Control over Fimmcial Reponing l initially cited as of and for Ihe year ended December 31, 2(07)

Criteria: Management of the Jury should have suitable skill, knowledge. or esperienee to prepare linanei.1 statements, the related footnotes. and Ihe supplementary informalion in accordance with accounting principles generally accepled in the United States of America. Intell1al controls should be adopted and implemented to prevent. deleet, or wrrec' a misstatemcnt in the tmancial s!Utemen!s. related footnotes. or ~upplemcn,ary infonmnion.

Condition: Although management of the Jury docs notaclUally prepare and draft Ihe linancial statements. the related fOO,"01C.5, and the ~uppkmental

information. they do have Ihe capability and experience to oversee the process. They provide all of the informalion 10 be included and Ihey understand the prt~enlation.

Cause: The condition is due to economic limitations.

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Effect: Misstatements in the financial statements, related footnotes, or supplementary information may not he detected within a timely period.

Recommendation: No aClion is recommended.

Molnagement's response and planned corrective action: We concur with the finding but it is not economically feasible for

corrective action 10 be taken.

Section III - Fedeml Awards Findings and Questioned Cnsts

2010-5 Internal Control Over Compliance

Department of Homeland Security Hawrd Mitigation Grant- CFDA Number 97.039

Criteria: Managemenl is responsible for establishing and implementing internal conlrol policies and procedures that provide reasonahle assurance that lransaclions are execUled in accordance with man:Jgt:lllcnt'~ authorization,

Condition: The Jury's OEP director serving in 2010 let for bids, via the Jury's ofticial journal. the purcha.'e of II generators without the jurors' approval. A purchase order for the genermllrs costing S200,075 was issued :md signed by the OEP director and assistant secretary/lreasurereven with the vendor noting in writing on the bids that they did not meet OEP (funding source) specifications. The jurors voted in June 2010 to request that the vendor meet or exceed the specifications listed on the spccilications sheets as advertised or come •.md get tne generators tnnl were deliver('d. No evidence was provided Ihal the vendor did or did not meel the specificalions before the genemtors were actually paid for in July 2010.

Cau~e: Employees of the Jury (induding the jurors) have not accepted the value of such internal control procedures.

Effect: The failure 10 establish or to adhere to established internal controls could result in transactions lh,tl are not in accordance with management's authurizatiun.

-5X

Recommendation: Action. should be taken only as approved and as directed by the Jury.

Management' • response and pl,mned corrective action: The Assistant District Attorney advised the Jury 10 pay for the

generator,.

Section IV - Management Letter

None issued.

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RICHLAND PARISH POLlCE JURY RAYVILLE. LOUISIANA

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS For lhe Year Ended December 31. 2010

Section I - Internal Control and Compliance Material to Financial Statements

2009-1 Inadequate Segreg,'tion of Dulie.

Adequ:'le segregation of duties is essential to a proper internal control structure. Unresolved· 2010-1.

2009-2 Improvemenl of Controls Over Expenditures/Di.,bursements

Internal control polk.s and procedures have nol been established or implemented 10 provide reasonable assumnce Ihat assets are safeguarded against loss resulling from unauthorized use and that transactions are executed in accordance with man:,gement's authorization. Unrc.solved - 20 I0-2.

2009-3 Repayment of Amounts Due to Other Funds

Deposit5to and expenditure.< from individual funds should be rcstricttd to Ihose amounts aUlhorized by slate statule<. Lax propositions, budgel ordin:mces. and management's authorization. Unrc.solved - 2010-3.

2009-4 Inlernal Cont",1 over Financial Reporting

Managemem of the Jury should have the capability and experience to prepare and dmft the tinancial stalements anti rel"le,1 footnotes. Unrcsolv"d·2DI0-4.

Section II - Management Lener

None issued.

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REPORT ON APPLYlNG AGREED-UPON PROCEDURES

December 31, 2010

HILL, INZINA & COMPANY Certified Public Accountants· A Professional Corporation

70 I East Madison Avenue· Bastrop, Louisiana 71220 Telephone 318-281-4492· Fax 3 I8-281-4087 • E-mail [email protected]

INDEPENDENT ACCOUNTANTS REPORT ON APPLYING AGREED-UPON PROCEDURES

Police Jurors Richland Parish Police Jury Rayville, Louisiana

We have performed the procedures included in the Louisiana Government Audit Guide and enumerated below as they are a required part of the audit engagement. We are required to perform each procedure and report the results, including any exceptions. Management of Richland Parish Police Jury (the "Jury)" is required to provide a corrective action plan that addresses all exceptions noted.

Management of the Jury is responsible for its financial records, establishing internal controls over financial reporting, and compliance with applicable laws and regulations. These procedures were agreed to by management of the Jury and the Legislative Auditor, State of Louisiana, solely to assist the users in assessing certain controls and in evaluating management's assertions about the Jury's compliance with certain laws and regulations during the year ended December 31,2010 included in the accompanying Louisiana Attestation Questionnaire.

This agreed-upon procedures engagement was performed in accordance with attestation standards established by the American Institute of Certified Public Accountants and applicable standards of Government Auditing Standards. The sufficiency of these procedures is solely the responsibility of the specified users of this report. Consequently, we make no representation regarding the sufficiency' of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

Our applied procedures, together with any findings follow:

Financial Management

I. Determine if management (chiefexecutive and board members) was presented with timely and accurate monthly financial statements, including budget-to-actual comparisons on funds (General Fund, Special Revenue Fund, Utility Fund, etc.) of the entity, during the year under examination.

Monthly hudget-to-actual comparisons for the period under examination were ohserved in hinders with other information provided at monthly meetings for each juror. The Jury's Secretaryrrreasurer stated that on occasion the financial statements were taken hy the jurors from the hinders for later review or that the information was mailed in lieu of placing it in the hinders so jurors could timely review hefore the meeting.

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2. If management was deficit spending during the period under examination, determine if there is a formaUwritten plan to eliminate the deficit spending and whether management is monitoring the plan.

No instances of deficit spending during the period under examination were noted or disclosed by management of the Jury.

3. Determine if there are adequate written policies and procedures for the financiallbusiness functions of the entity (e.g., budgeting, receipts, purchasing. disbursements, payroll, etc.).

The Jury's procedure manual that was effective during the period under examination included policies specifically related to:

- centralized accounting, purchasing, and disposal procedures - equipment purchasing - payroll, personnel, and administration.

Credit Cards

I. Obtain from management a listing of all active credit cards (and bank debit cards if applicable) for the period under examination, including the card numbers and the names of the persons who maintained possession of the cards.

[Note: There are three types of credit cards: a) general (e.g., VISA, MasterCard, etc.), b) store (e.g., Wal-Mart, Office Depot, Sam's Club, etc.); and c) gasoline (e.g., Fuelman, Exxon, etc.)]

Management asserted that the only active credit cards of the Jury for the period under examination were Wal-Mart and Fuelman.

2. Obtain and evaluate the adequacy of the entity's written policies and procedures for credit cards (and debit cards if applicable).

The Jury had no written policies and procedures for credit cards effective for the period under examination but management of the J:ury advised that an employee must come to the Secretaryffreasurer's office to get the sole Wal-Mart card after obtaining a purchase order and before making the actual purchase. Those employees permitted to make Fuelman purchases each have access to cards and must enter security codes before a purchase is made.

3. Obtain the monthly statements for all credit cards (general, stores, and gasoline) used during the period under examination and select for detailed review, the two largest (dollar amount) statements for each card. (Note: For a debit card, select the two monthly bank statements with the largest dollar amount of debit charges):

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A. Obtain the entity's supporting documentation for the purchases/charges shown on the selected monthly statements:

• Determine if each purchase is supported by:

o An original itemized receipt (i.e., identifies precisely what was purchased)

o Documentation of the business/public purpose (Note: For meal charges, there should also be documentation of the individuals participating.)

o Other documentation as may be required by policy (e.g., purchase order, authorization, etc.).

• Determine if each purchase is:

o Reasonable in amount

o For an appropriate and necessary business purpose relative to the entity.

• Determine if any purchases were made for personal purposes, and iF so, determine the date(s) of reimbursement.

• Determine if any purchases effectively circumvented the entity's normal procurement/purchasing process and/or the Louisiana Public Bid Law (i.e., large or recurring purchases requiring the solicitation of bids or quotes).

We obtained a listing of all checks written by the Jury to Wal-Mart and Fuelman during the period under examination and selected for detailed review the two largest individual checks paid to each vendor. We examined supporting documentation for each of the four payments and found that each:

• had original, itemized receipts - had documentation of apparent business/public purpose - had evidence of receipt - had a purchase order issued, if applicable - appeared to be reasonable in amount - appeared to be for an appropriate and necessary business purpose relative to the

Jury • appeared to not be made"for personal purposes - appeared not to circumvent the Jury's normal procurement/purchasing process

and/or the Louisiana Public Bid Law.

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B. Determine if there was any duplication of expenses by comparing all travel and related purchases to the appropriate person's expense reimbursement report(s).

No duplication of expenses were noted or disclosed by management of the Jury.

C. Determine ifeach monthly credit card statement (including supporting documentation) was reviewed and approved, in writing, by someone other that the person making the purchases. [Note: Requiring such approval may constrain the legal authority ofcertain public officials (e.g., mayor of a Lawrason Act municipality).

The credit card statements were reviewed and approved by someone other than the person making the purchases but not specifically in writing. The Secretaryrrreasurer or the assistants reviewed each statement before payment, matching with purchase orders, reviewing for sales tax or late payment assessments, checking accuracy, etc. The jurors considered the adopted budgets as approval for expenditures.

D. Determine if finance charges andlor late fees were assessed on the monthly statements.

Three cents oflate charges were assessed on each of the two monthly statements from Wal-Mart but were not paid by the Jury.

Travel and Expense Reimbursement

1. Obtain and evaluate the adequacy of the entity"s written policies and procedures fortravel and expense reimbursement.

The Jury's written policies and procedures that were effective during the period under examination did not include the Jury's standing policy of reimbursing travel, meals, and related costs at the state's going rate. Revised policies and procedures of the Jury that officially became effective January 1,2011 do include the policy.

2. Obtain a listing of all travel and related expense reimbursements during the period under examination and select for review, the one person who was reimbursed the most money:

A. Obtain all of the expense reimbursement reports of the selected person, including the supporting documentation, and choose the three largest expense reports to review in detail (Note: Choose 100% for review if there are less than three expense reports.):

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• Determine if each expenditure is:

o Reimbursed in accordance with written policy (e.g., rates established for meals, mileage, lodging, etc.)

o Reasonable in amount

o For an appropriate and necessary business purpose relative to the travel.

• Determine if each expenditure is supported by:

o An original itemized receipt (i.e., identifies precisely what was purchased) [Note: An expense that is reimbursed based on an established per diem amount (e.g., meals) generally does not require a receipt.]

o Documentation of the business/public purpose (Note: For meal charges, there should also be documentation of the individuals participating)

o Other documentation as may be required by policy (e.g., authorization for travel, conference brochure, certificate of attendance, etc.).

• Determine if any of the expenditures were for personal purposes (e.g., extended hotel stays before or after training class, meals for spouses, entertainment, etc.).

• Determine ifeach expense report (including documentation) was reviewed and approved, in writing, by someone other than the person receiving reimbursement.

Per review of the Jury's year-to-date general ledgers for all funds' expense accounts with descriptive titles including travel, meals, or conferences, the one person to whom the Jury paid the largest reimbursements had only two expense reports. These reports were selected for detailed review and all expenses:

• were reimbursed in accordance with the written policies of the Jury or Richland Parish Library

- appeared to be reasonable in amount - were for an appropriate and necessary business purpose relative to the travel - were supported by an original itemized receipt, if applicable - were supported by documentation as to the business/public purpose • were supported with payment of registration fees - appeared to not have been for personal purposes except for a $30 luncheon ticket

for a spouse - were reviewed and approved, in writing, by someone other than the person

receiving reimbursement.

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B. Detennine if there was any duplication of expenses by comparing the expense reports to charges/purchases made on credit card(s).

No duplication of expenses were noted or disclosed by management of the Jury.

Contracts

1. Obtain and evaluate the adequacy of the entity's written policies and procedures for contracts/contracting, including leasing.

The Jury had no written policies and procedures specifically for contracts/contracting, including leasing, effective for the period under examination but did have written centralized accounting and purchasing procedures.

2. Detennine if the entity has centralized control and oversight of contracts to ensure that services/deliverables received and payments made comply with thetenns and conditions of the contracts.

The SecretarylTreasurer's office was ultimately responsible for compliance with the terms and conditions of contracts, including leases, The Jury's written procedures specifically state that records for all accounting and purchasing shall be maintained on a parish-wide basis and no record shall be kept on a ward or other s':lb-parish basis,

3. Review accounting records (e.g., general ledgers, accounts payable reports, etc.) for the period under examination to identify individualslbusinesses being paid for contracted services (e.g., professional, technical, etc.). Select the five "vendors" that were paid the most money during the period and detennine if there is a fonnal/written contract that supports the services arrangement and payments.

Review of the accounting records for the period under examination disclosed only four individualslbusinesses being paid for contracted services. FonnaVwritten contracts were available for each.

4. Obtain a listing of all active contracts and the expenditures made during the period under examination. Select for detailed review, the largest (dollar amount) contract in each of the following categories that was entered into during the period.

( I) Services

(2) Materials and supplies

(3) Public works

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A. Obtain the selected contracts and the related paid invoices and:

• Detennine if the contract is a related party transaction.

• Detennine if the transaction is subject to the Louisiana Public Bid Law:

o If yes, detennine if the entity complied with all requirements (e.g., solicited quotes or bids, advertisement, selected lowest bidder, etc.)

o If no, detennine if the entity provided an open and competitive atmosphere (a good business practice) for the transaction/work.

• Detennine if the contract was awarded under the request for proposals (RFP) method. If so, obtain all proposals and the evaluation/scoring documents to detennine if the contract was awarded to the most responsible offeror whose proposal was the most advantageous taking into consideration price and other evaluation factors set forth in the RFP.

• Determine if the procurement was made "off' state contract (as opposed to following the competitive bidding requirements of the Louisiana Public Bid Law). If so, detennine if the board fonnally adopted the use of the Louisiana Procurement Code (R.S. 39:1551(755), the set of laws that govern most state agencies' purchases of certain services, materials and supplies, and major repairs.

• Detennine if the procurement related to homeland security and was made from federal General Services Administration (GSA) supply schedules. If so, detennine if the entity (I) utilized a Louisiana licensed distributor; (2) used the competitive ordering procedures of the federal GSA; and (3) received prior approval from the director of the State Office of Homeland Security and Emergency Preparedness, or his designee.

• Determine if the entity "piggybacked" onto another agency's contract. If so, detennine if there is documentation on file that clearly demonstrates the contract was a previously bid, viable contract and the price paid by the entity was the same as that contract's bid price.

• Determine if the contract was amended. If so, detennine whether the original contract contemplated or provided for such an amendment. Furthennore, determine if the amendment is outside the scope of the original contract, and if so, whether it should have been separately bid and contracted.

• Detennine if the invoices received and payments made during the period complied with the tenns and conditions of the contract.

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• Determine if there is written evidence that the entity's legal advisor reviewed the contract and advised entering into the contract.

• Determine if there is documentation of board approval, if required.

Only two other contracts were entered into during the period under examination but no payments were made under either during the period. All of the four aforementioned contracts were for professional services. The "vendor's" contract under which the most money was paid during the period under examination was selected for detailed review.

The contract was not: • a related party transaction - subject to Louisiana Public Bid Law - awarded under the request for proposals method - made "orr' state contract - related to homeland security nor made from federal General Services

Administration supply schedules - "piggybacked" onto another agency's contract • amended - required to undergo review by the Jury's legal advisor.

The invoices received and payments made during the period under examination complied with the terms and conditions of the contract and the contract was approved by the Jury.

Payroll and Personnel

I. Obtain and evaluate the adequacy ofthe entity's written policies and procedures for payroll and personnel.

In December 2010, the Jury approved another policy manual related only to payroll and personnel policies that became effective January 1, 2011. This policy manual contains provisions for employment, employment status and records, employee benefit programs, timekeeping/payroll, work conditions and hours, leaves of absence, conduct and disciplinary action, and miscellaneous. The Richland Parish Library has its own separate payroll and personnel policies and procedures.

2. Obtain a listing of employment contracts/agreements in force during the period under examination. Select the largest (dollar amount) employment contract and determine if all payments issued during the period under examination were done in strict accordance with the terms and conditions of the contract.

No employment contracts/agreements in force during the period under examination were noted or disclosed by management of the Jury.

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3. Select the attendance and leave records for one pay period and:

• Determine if all employees are documenting their daily attendance and leave (e.g., vacation, sick, etc.). (Note: Generally, an elected official is not eligible to earn leave and does not document hisfher attendance and leave. However, if the elected official is earning leave according to policy and/or contract, the official should document hisfherdaily attendance and leave.)

• Determine if supervisors are approving, in writing, the attendance and leave ofall employees.

• Determine if the entity is maintaining accurate written leave records (e.g.. hours earned, hours used, and balance available) on all eligible employees.

Attendance and leave records for the April 15, 2010 pay period were selected. All employees required to document their daily attendance and leave were doing so. Supervisors approved, in writing, the attendance and leave of all of the 59 individual records selected for testing except for three (5%).

As the payroll and personnel policies of all of the Jury's employees were totally revised effective January 1, 2011, except for the employees of the Richland Parish Library, the accuracy of written leave records for the April 15, 2010 pay period was not tested for this period. Instead, the correctness of paid time off accrued under the revised policy for each employee with ten years of eligible service as ofJanuary 1,2011 with the Jury were verified with 100% accuracy. Also, none of the Richland Parish Library's employees leave time as of December 31, 2010 exceeded the maximum allowed under its separate policy.

4. Select the five highest paid employees and determine if changes made to their hourly pay rates/salaries during the period under examination were approved in writing and in accordance with policy.

The Jury had no formaUwritten policy in effect regarding pay increases for the period under examination. Three of the five highest paid employees pay rates changed from the first payroll check in 2010 to the last in 2010. All of the changes were approved by the Jury with such approval documented in the Jury's official minutes.

5. Select the five largest termination payments (e.g., vacation, sick, compensatory time, etc.) made during the period under examination. Determine if the payments were supported by adequate documentation, made in strict accordance with policy and/or contract, and properly approved.

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The Jury only made five termination payments during the period under examination. The payments were:

• supported by adequate documentation - made in accordance with the standing policies effective at the time of payment - not required to have any other specific approval.

Three of the five termination payments were governed by the Jury's policies while the other two were governed by Richland Parish Library's separate policies. The Jury's written policy, effective at the time of the termination payments relative to payment of annual leave upon retirement or separation of employment, was to pay employees for up to ten days of annual leave or transfer the leave toward retirement. But the Jury's standing policy was to pay for all unused annual leave upon retirement or separation. One of the payments was for 112 hours of unused leave.

6. Detennine if any employees were also being paid as contract labor during the period of the examination.

No instances of employees being paid as contract labor during the period under examination were noted or disclosed by management of the Jury.

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

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

lsI Hill. Inzina & Co.

June 24,2011

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hill, inzina company...richland parish police jury rayvlllf~ louisiana fll'lancial report...

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