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05APR -4

LASALLE PARISH POLICE JURYJena, Louisiana

Primary Government Financial StatementsWith Independent Auditor's Report

As of and for the Year EndedDecember 31,2004

With Supplemental Information Schedules

Under provisions yi'sUi Is law, this report is a r>-iblicdocument. Acopy of the report has been submitted tothe entity and other Eppropriate public officials. Theroport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.

Release Date

LaSalle Parish Police JuryJena, Louisiana

Primary Government Financial StatementsWith Independent Auditor's Report

As of and for the Year EndedDecember 31, 2004

With Supplemental Information Schedules

C O N T E N T S

Required Supplemental Information (Part I)Management's Discussion and Analysis

Independent Auditor's Report

Basic Financial Statements

Government-Wide Financial Statements:

Statement of Net Assets

Statement of Activities

Fund Financial Statements - Governmental Funds:

Balance Sheet

Statement of Revenues, Expenditures, and Changes in Fund Balances

Notes to the Financial Statements

Required Supplemental Information (Part II)

Budget Comparison Schedules - Major Funds

Other Supplemental Schedules

Non-Major Governmental Funds:

Special Revenue Funds:Combining Balance Sheet

Combining Schedule of Revenues, Expenditures and ChangesIn Fund Balances

Statement

A

B

C

D

Schedule

Page

4

7

10

11

12

14

17

Page

34

40

41

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LaSalle Parish Police JuryJena, LouisianaTable of Contents (Contd.)

Schedule PageOther Supplemental Schedules (Contd.)

Special Revenue Funds -Road Districts:

Combining Balance Sheet 4 42

Combining Schedule of Revenues, Expenditures and ChangesIn Fund Balances 5 43

Schedule of Compensation Paid Elected Officials 6 45

Schedule of Expenditures of Federal Awards 7 46

Other Reports

Report on Compliance and Internal Control Over FinancialReporting Based on an Audit of Financial StatementsPerformed in Accordance Government Auditing Standards 49

Report on Compliance With Requirements Applicable to EachMajor Program and Internal Control Over Compliance inAccordance With OMB Circular A-133 51

Schedule of Findings and Questioned Costs 8 53

Status of Prior Audit Findings 9 56

Agency Corrective Action Plan 57

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Required Supplemental Information (Part I)Management's Discussion and Analysis

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Management's Discussion and AnalysisDecember 31,2004

(Unaudited)

As management of the LaSalle Parish Police Jury, we offer readers of the police jury's financial statementsthis narrative overview and analysis of the financial activities of the police jury for the year ended December31,2004. We encourage readers to consider the information presented here, in conjunction with the basicfinancial statements, and the supplementary information provided in this report in assessing the efficiencyand effectiveness of our stewardship of public resources.

Overview of the Financial Statements

This discussion and analysis are intended to serve as an introduction to the LaSalle Parish Police Jury's basicfinancial statements. The police jury's basic financial statements comprise three components: (1)government-wide financial statements, (2) fund financial statements, and (3) notes to the financialstatements. This report also contains other supplementary information in addition to the basic financialstatements themselves.

Government-wide Financial Statements. The government-wide financial statements are designed to providereaders with a broad overview of the LaSalle Parish Police Jury' s finances, in a manner similar to a private-sector business.

The statement of net assets presents information on all of the LaSalle Parish Police Jury's assets andliabilities, with the difference between the two reported as net assets. Over time, increases or decreases innet assets may serve as a useful indicator of whether the financial position of the police jury is improvingor deteriorating.

The statement of activities presents information showing how the police jury's net assets changed duringthe most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving riseto the change occurs, regardless of timing of related cash flows. Thus, revenues and expenses are reportedin this statement for some items that will only result in cash flows in future fiscal periods (for example,earned but not taken annual leave).

Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control overresources that have been segregated for specific activities or objectives. The LaSalle Parish Police Jury, likeother state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the current funds of the police jury are included in one category -governmental funds.

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

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

The LaSalle Parish Police Jury maintains 22 individual governmental funds. Information is presentedseparately in the governmental funds balance sheet and in the governmental funds statement of revenues,expenditures, and changes in fund balances for the General Fund, the Road and Bridge, CourthouseMaintenance, Garbage District, Library, and Workforce Investment Act special revenue funds, which areconsidered to be a major funds. Data from the other funds are combined into a single, aggregatedpresentation. Individual fund data for each of these non-major governmental funds is provided in the formof combining schedules in the other supplemental information section of the report.

LaSalle Parish Police Jury adopts an annual appropriated budget for the General Fund and all special revenuefunds. Budgetary comparison schedules are provided in the Required Supplemental Information (Part II)for the major funds to demonstrate compliance with this budget.

Notes to the financial statements. The notes provide additional information that is essential to a fullunderstanding of the data provided in the government-wide and fund financial statements.

Other information. In addition to the basic financial statements and accompanying notes, this report alsopresents certain other supplemental information concerning the LaSalle Parish Police Jury. The combiningstatements referred to earlier in connection with non-major governmental funds are presented immediatelyfollowing the required supplemental information section.

Government-Wide Financial Analysis As noted earlier, net assets may serve over time as a usefulindicator of a government's financial position. At the close of the fiscal year, assets of the LaSalle ParishPolice Jury exceeded liabilities by $5,657,483. Of those net assets, $2,933,684 represents the police jury'sinvestment in capital assets net of accumulated depreciation. These assets are not available for futurespending. The remaining net assets are made up of bank balances and receivables.

Financial Analysis of the Government's Funds LaSalle Parish Police Jury uses fund accounting to ensureand demonstrate compliance with finance-related legal requirements. The focus of the governmental fundsis to provide information on near-term revenue, expenditures, and balances of expendable resources. Thisinformation is used in assessing the financing requirements of the police jury. Unreserved fund balancesmay serve as a useful measure of a government's net resources available for spending at the end of the fiscalyear.

As of December 31, 2004, combined governmental fund balances of $2,723,799 showed a decrease of$196,649 over December 31, 2003. The General Fund's balance of $538,947 showed an increase of$251,457 over the 2003 balance of $287,490. This increase was due primarily to the reduction in transfersto other funds for judicial and public works functions.

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The police jury faced several unexpected challenges in 2004. A fire on July 1, 2004 caused extensivedamage to the courthouse, and repairs are still being made there. On November 23,2004, a tornado causedmore damage to the parish, including damage to the parish barn. The voters of LaSalle Parish Police Juryrejected a sales tax that the police jury had hoped would help alleviate some of the strain of the increase incosts of services necessary to the parish.

Budgetary Highlights

Differences between the bottom line of the original budgets and the final budgets were relatively small.Actual numbers for Ad Valorem Taxes and Severance Taxes were slightly lower than expected.Expenditures were higher in areas such as Public Safety, Judicial, and Financial and Administrative.

Capital Asset and Debt Administration

Capital Assets. The LaSalle Parish Police Jury's investment in capital assets for its governmental activitiesas of December 31,2004, amounts to $2,933,684 (net accumulated depreciation). This investment includesland, buildings and improvements, infrastructure roads and bridges, and furniture and equipment. Theincrease in capital assets for the year was $228,802. Reductions in capital assets for the year endedDecember 31, 2004 were $10,360.

Long-Term Debt The LaSalle Parish Police Jury had no long term debt at 12/31/04.

Economic Factors and Next Year's BudgetsThe police jury's financial plan for this upcoming year is underway. The General Fund plans to maketransfers to alleviate deficit balances in the Road and Bridge, Criminal Court, and Airport funds.

Due to the increasing costs of Public Safety, the police jury deferred any equipment purchases for the 2005budget year. The 2005 General Fund budget is projected to end up with a positive balance even though weexpect to expend more than our revenues.

Requests for Information

This financial report is designed to be a summary of the LaSalle Parish Police Jury's finances. If there areany questions regarding any information, a request can be made in writing to the LaSalle Parish Police Jury,at PO Box 1288, Jena, Louisiana 71342. Our telephone number is (318) 992-2101.

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Member American MARY JO FlNLEY, CPA, INC. Member Society ofInstitute of Certified Louisiana CertifiedPublic Accountants A PROFESSIONAL CORPORATION Publlc Accountants

116 Professional Drive - West Monroe, LA 71291Phone (318) 329-8880 - Fax (318) 329-8883

Independent Auditor's Report


I have audited the accompanying financial statements of the governmental activities, each major fund, andthe aggregate remaining fund information of LaSalle Parish Police Jury as of and for the year endedDecember 31, 2004, which collectively comprise the basic financial statements of the parish's primarygovernment as listed in the table of contents. These financial statements are the responsibility of LaSalleParish Police Jury's management. My responsibility is to express an opinion on these financial statementsbased on my audit.

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

The financial statements referred to above include only the primary government of LaSalle Parish whichconsist of all funds, organizations, institutions, agencies, departments, and offices that comprise the policejury's legal entity. The financial statements do not include financial data of the police jury's legally separatecomponent units, which accounting principles generally accepted in the United States of America requireto be reported with the financial data of the parish's primary government. As a result, the primarygovernment financial statements do not purport to, and do not, present fairly the financial position of thereporting entity of LaSalle Parish as of December 31,2004, and the changes in its financial position for theyear then ended in conformity with accounting principles generally accepted in the United States of America.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financialposition of the governmental activities, major funds, and the aggregate remaining fund information for theprimary government of LaSalle Parish Police Jury as of December 31,2004, and the respective changes infinancial position thereof for the year then ended in conformity with accounting principles generally acceptedin the United States of America.

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Practice Limited to Governmental Accounting, Auditing and Financial Reporting


Independent Auditor's Report,December 31,2004

As discussed in Note 1, the police jury has implemented a new financial reporting model, as required by theprovisions of GASB Statement No. 34, Basic Financial Statements - and Management's Discussion andAnalysis -for State and Local Governments, as of December 31, 2004.

Management's discussion and analysis on pages 4 through 6 is not a required part of the basic financialstatements but is supplementary information required by the Governmental Accounting Standards Board.I have applied certain limited procedures, which consisted principally of inquiries of management regardingthe methods of measurement and presentation of the required supplementary information. However, I didnot audit the information and express no opinion on it.

My audit was performed for the purpose of forming an opinion on the financial statements that collectivelycomprise LaSalle Parish Police Jury's basic financial statements. The budgetary comparison schedules onpages 33 through 37, which is supplementary information required by the Governmental AccountingStandards Board and the other supplementary information schedules on pages 40 through 46 are presentedfor the purpose of additional analysis and are not a required part of the basic financial statements. Thoseschedules have been subjected to the auditing procedures applied in the audit of the basic financialstatements and, in my opinion, are presented fairly in all material respects in relation to the basic financialstatements taken as a whole.

West Monroe, LouisianaMarch 21,2005

Basic Financial Statements

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Governmental ActivitiesStatement of Net Assets

December 31,2004

Statement A

AssetsCash and cash equivalentsReceivablesCapital assets (net)

Total AssetsLiabilitiesCash overdraftAccounts payablePayroll withholding payableDeferred revenues - protest taxes

Total LiabilitiesNet AssetsInvested in capital assets, net of related debtUnrestricted

Total Net Assets

$1,471,6372,331,7752.933,684

$6,737,096

$558,526330,714

1,162189,211

$1,079,613

$2,933,6842,723,799

$5,657,483

See accompanying notes to basic financial statements.

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Statement BLaSalle Parish Police Jury

Jena, LouisianaStatement of Activities

For the Year Ended December 31, 2004

Functions:Governmental Activities:

General governmentPublic safetyPublic worksHealth and welfareCulture and recreationEconomic development and assistanceTransportationIntergovernmental

Total governmental activities

Expenses

$1,448,995321,319

1,965,93570,579

458,9093,587,585

15,81540,994

Chargesfor

Services

$157,415

5,800

Program RevenuesOperating CapitalGrants and Grants and

Contributions Contributions

$41,18848,833

253,899

$27,8243,565,901

Net (Expense)Revenue andChanges inNet Assets

($1,250,392)(272,486)

(1,712,036)(70,579)

(425,285)(21,684)(15,815)(40,994)

$7.910.131 $163.215 S3 .909.821 $27.824 (3,809,271)

General revenues:Taxes:

Ad valorem taxesState revenue sharingOther taxes, penalties, and interest

Grants and contributions not restricted tospecific programs

Licenses and permitsUnrestricted investment earningsOther

Total general revenues

Change in net assets

Net assets at beginning of year

Net assets at end of year

2,052,77965,4636,390

1,091,66638,382

110,243207,929

3,572.852

(236,419)

5,893,902


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Reconciliation of Governmental Funds Balance Sheet toStatement of Net Assets

December 31,2004

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of net assets are different because:Capital assets used in governmental activities are not financial resources 2,933,684

Net assets of governmental activities ^


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Reconciliation of the Statement of Revenues, Expendituresand Changes in Fund Balances to the Statement of Activities

For the Year Ended December 31, 2004

Net change in fund balances - total governmental funds ($196,649)

Governmental funds report capital outlays as expenditures. However, in the statement ofactivities the cost of those assets is allocated over their estimated useful lives and reportedas depreciation expense. This is the amount by which capital outlays ($228,802) exceededdepreciation ($268,572) in the current period. (39,770)

Change in net assets of governmental activities ($236.419)


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Notes to the Financial Statements

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Notes to the Financial StatementsAs of and for the Year Ended December 31, 2004

Introduction

The LaSalle Parish Police Jury is the governing authority for LaSalle Parish and is a political subdivision ofthe State of Louisiana. The police jury is governed by ten jurors representing the various districts within theparish. The jurors serve four-year terms which expire in January, 2008.

Louisiana Revised Statute 33:1236 gives the police jury various powers in regulating and directing the affairsof the parish and its inhabitants. The more notable of those are the powers to make regulations for their owngovernment, to regulate the construction and maintenance of roads and bridges, to regulate the constructionand maintenance of drainage systems, to regulate the sale of alcoholic beverages, and to provide for the healthand welfare of the poor, disadvantaged, and unemployed in the parish. Funding to accomplish these tasks isprovided by ad valorem taxes, sales taxes, beer and alcoholic beverage permits, state revenue sharing, andvarious other state and federal grants.

In accomplishing its objectives, the police jury also has the authority to create special districts (componentunits) within the parish. The districts perform specialized functions, such as fire protection, water distribution,sewerage collection and disposal, drainage control, library facilities, and health care facilities.

In June, 1999, the Governmental Accounting Standards Board (GASB) unanimously approved Statement No.34, Basic Financial Statements and Management's Discussion and analysis for State and Local Governments.Certain of the significant changes in the statements include the following:

For the first time the financial statements include:

A Management Discussion and Analysis (MD&A) providing an analysis of the police jury's overallfinancial position and results of operations.

Financial statements prepared using full accrual accounting for all of the police jury's activities,including infrastructure (roads).

A change in the fund financial statements to focus on the major funds.

These and other changes are reflected in the accompanying financial statements (including notes to thefinancial statements). The police jury has elected to implement the general provisions of the Statement in thecurrent year.

GASB Statement No. 14, The Reporting Entity, established criteria for determining the governmentalreporting entity and component units that should be included within the reporting entity. Under provisions

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Notes to the Financial Statements (Continued)

of this Statement, the jury is considered a primary government, since it is a special purpose government thathas a separately elected governing body, is legally separate, and is fiscally independent of other state or localgovernments. As used in GASB Statement No. 14, fiscally independent means that the police jury may,without the approval or consent of another governmental entity, determine or modify its own budget, levy itsown taxes or set rates or charges, and issue bonded debt. In accordance with GASB Statement 14, thereporting entity for LaSalle Parish consist of the primary government (police jury), (b) organizations for whichthe primary government is financially accountable, and (c) other organizations for which the nature andsignificance of their relationship with the primary government are such that exclusion would cause thereporting entity's financial statements to be misleading or incomplete.

GASB Statement No. 14 established criteria for determining which component units should be consideredpart of LaSalle Parish Police Jury for financial reporting purposes. The basic criterion for including apotential component unit within the reporting entity is financial accountability. The GASB has set forthcriteria to be considered in determining financial accountability. This criteria includes:

1. Appointing a voting majority of an organization's governing body, and:

a. The ability of the police jury to impose its will on that organization and/or

b. The potential for the organization to provide specific financial benefits to orimpose specific financial burdens on the police jury.

2. Organizations for which the police jury does not appoint a voting majority but are fiscallydependent on the police jury.

3. Organizations for which the reporting entity financial statements would be misleading ifdata of the organization is not included because of the nature or significance of therelationship.

Based on the previous criteria, the police jury has determined that the following component units arepart of the reporting entity:

Fiscal CriteriaComponent Unit Year End UsedLaSalle Parish:

Sheriff June 30 2 & 3Clerk of Court June 30 2 & 3Assessor December 31 2 & 3Library December 31 1 & 3Community Action December 31 1 & 3Economic Development Board December 31 1 & 3

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Component UnitAmbulance Service DistrictHospital Service District No. 1Hospital Service District No. 2Recreation District No. 1Recreation District No. 5Recreation District No. 10Recreation District No. 22Industrial District No. 1Sewerage District No. 1Waterworks District No. 1Communications District

East Jena Fire District #1Eden-Fellowship Fire DistrictLittle Creek SearcyRogers-Nebo Fire DistrictSummerville RosefieldWhitehall Fire DistrictTwenty-eighth Judicial District Criminal Court

FiscalYear End

December 3 1September 30September 30December 3 1December 3 1December 3 1December 3 1December 3 1December 3 1December 3 1December 3 1December 3 1December 3 1December 3 1December 3 1December 3 1December 3 1December 3 1

CriteriaUsed1&31&31&31&31 & 31&31 & 31 & 31&31&31&31&31&31&31&31&31 & 32 & 3

Considered in the determination of component units of the reporting entity were the LaSalle ParishSchool Board, the District Attorney and Judges for the Twenty-Eighth Judicial District, and thevarious municipalities in the parish. It was determined that these governmental entities are notcomponent units of the LaSalle Parish Police Jury reporting entity because they have separately electedgoverning bodies, are legally separate, and are fiscally independent of the LaSalle Parish Police Jury.

GASB Statement 14 provides for the issuance of primary government financial statements that areseparate from those of the reporting entity. However, the primary government's (police jury's)financial statements are not a substitute for the reporting entity's financial statements. Theaccompanying primary government financial statements have been prepared in conformity withgenerally accepted accounting principles as applied to governmental units.

The police jury has chosen to issue financial statements of the primary government (police jury) only;therefore, none of the previously listed component units, except as discussed in the followingparagraph, are included in the accompanying primary government financial statements. Thesefinancial statements are not intended to and do not report on the LaSalle Parish reporting entity butrather are intended to reflect only the financial statements of the primary government (police jury).

The primary government financial statements include all funds, account groups, and organizations forwhich the police jury maintains the accounting records. The organizations for which the police jury

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maintains the accounting records are considered part of the primary government (police jury) andinclude the LaSalle Parish Library and the Twenty-Eighth Judicial District Criminal Court.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net assets and the statement ofchanges in net assets) report information on all of the nonfiduciary activities of the primarygovernment. For the most part, the effect of interfund activity has been removed from thesestatements. Governmental activities, which normally are supported by taxes and intergovernmentalrevenues, are reported separately from business-type activities, which rely to a significant extent onfees and charges for support.

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

Separate financial statements are provided for governmental funds and, where applicable, proprietaryand fiduciary funds, even though fiduciary funds are excluded from the government-wide financialstatements. Major individual governmental funds and, where applicable, major individual enterprisefunds are reported as separate columns in the fund financial statements.

B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurementfocus and the accrual basis of accounting, as are proprietary and fiduciary fund financial statements,where applicable. Revenues are recorded when earned and expenses are recorded when a liability isincurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues inthe year for which they are levied. Grants and similar items are recognized as revenue as soon as alleligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognized as soonas they are both measurable and available. Revenues are considered to be available when they arecollectible within the current period or soon enough thereafter to pay liabilities of the current period.For this purpose, the government considers revenues to be available if they are collected within 60

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days of the end of the current fiscal period. Expenditures generally are recorded when a liability isincurred, as under accrual accounting. However, debt service expenditures, as well as expendituresrelated to compensated absences and claims and judgments, are recorded only when payment is due.

Ad valorem taxes, state revenue sharing, and federal and state grants are all considered to besusceptible to accrual and so have been recognized as revenues of the current fiscal period. All otherrevenue items are considered to be measurable and available only when cash is received by the policejury.

The police jury reports the following major governmental funds:

The General Fund is the police jury's primary operating fund. It accounts for all financialresources of the general government, except those required to be accounted for in another fund

The Road and Bridge Fund accounts for the construction, repair, and maintenance of roads andbridges on a parish wide basis. Financing is provided by ad valorem taxes, state revenue sharing,Parish Transportation Act funds, and operating transfers from the General Fund.

The Courthouse Maintenance Fund accounts for ad valorem taxes and state revenue sharing fundsdedicated to maintenance of the parish courthouse and jail facilities.

The Garbage District No. 1 Fund accounts for operation and maintenance of the parish widegarbage disposal program. Financing is provided by ad valorem taxes and state revenue sharing.

The Library Fund accounts for ad valorem taxes and state revenue sharing funds dedicated for theoperation of the parish library.

The Workforce Investment Act (WIA) Fund accounts for grants from the United StatesDepartment of Laborpassed through the Louisiana Department of Labor. Grants are subsequentlytransferred to the LaSalle Parish Community Action Association, Incorporated, which administersthe program under contract with the police jury. The WIA program provides job training andrelated assistance to economically disadvantaged individuals. The ultimate goal of the programis to move trainees into permanent, self-sustaining employment.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,generally are followed in both the government-wide and proprietary fund financial statements to theextent that those standards do not conflict with or contradict guidance of the GovernmentalAccounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation.The police jury has elected not to follow subsequent private-sector guidance.

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As a general rule the effect of interfund activity has been eliminated from the government-widefinancial statements. Elimination of these charges would distort the direct costs and program revenuesreported for the various functions concerned.

Amounts reported as program revenues include 1) charges to customers or applicants for goods,services, or privileges provided, 2) operating grants and contributions, and 3) capital grants andcontributions. Internally dedicated resources are reported as general revenues rather than as programrevenues. Likewise, general revenues include all taxes.

When both restricted and unrestricted resources are available for use, it is the police jury's policy touse restricted resources first, then unrestricted resources as they are needed.

C. Deposits and Investments

The police jury' s cash and cash equivalents are considered to be cash on hand, demand deposits, andshort-term investments with original maturities of three months or less from the date of acquisition.State law and the police jury's investment policy allow the police jury to invest in collateralizedcertificates of deposits, government backed securities, commercial paper, the Louisiana AssetManagement Pool (a state sponsored investment pool), and mutual funds consisting solely ofgovernment backed securities. Investments for the police jury are reported at fair value.

D. Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements outstanding at theend of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion ofinterfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans).All other outstanding balances between funds are reported as "due to/from other funds."

Advances between funds, as reported in the fund financial statements, are offset by a fund balancereserve account in applicable governmental funds to indicate that they are not available forappropriation and are not expendable available financial resources

All property tax receivables are shown net of an allowance for uncollectibles. Ad valorem taxes areassessed on a calendar year basis and attach as an enforceable lien and become due and payable on thedate the tax rolls are filed with the recorder of mortgages. Louisiana Revised Statute 47:1993 requiresthat the tax roll be filed on or before November 15th. Ad valorem taxes become delinquent if not paidby December 31sl. The taxes are normally collected in December of the current year and January andFebruary of the ensuing year. The following is a summary of authorized and levied ad valorem taxes:

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AuthorizedMillage

LeviedMillage

ExpirationDate

Parish wide taxes - maintenance:ParishHealth unitRoad and bridgeCourthouseLibrary

District taxes:Garbage District No. 1Road Maintenance Districts:

No. 1No. 2No. 3No. 4No. 5No. 6No. 7No. 8No. 9No. 10

3.801.069.607.687.00

10.00

10.006.565.00

10.0010.0010.0010.006.43

10.007.00

4.221.21

10.658.527.46

10.65

Indefinite2013201420142005

2008

9.667.544.879.468.9510.4618.687.179.617.02

2010201320132009201320132009200920062013

The difference between authorized and levied millage is the result of reassessments of taxable property withinthe parish as required by Article 7, Section 18 of the Louisiana Constitution of 1974. The following are theprincipal taxpayers for the parish and their 2004 assessed valuation (amounts expressed in thousands):

Sustainable Forest L.L.C.ANR Pipeline CompanyCenturytelGaranEntergyHunt Petroleum CorporationHunt Forest Products, IncGeorga-PacificTexas Gas Transmission Corp.Southern Heritage Bank

Total

2004AssessedValuation$4,278,0802,893,1202,549,7502,318,8502,275,1001,493,4401,446,3301,429,6401,139,6201,027,600

$20,851,530

Percentof TotalAssessed

Valuation7.28%4.92%4.34%3.94%3.87%2.54%2.46%2.43%1.94%1.75%

35.47%

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E. Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads andbridges) are reported in the applicable governmental or business-type activities columns in thegovernment-wide financial statements. Capital assets are capitalized at historical cost or estimatedcost if historical cost is not available. Approximately 87% of the police jury's non-infrastructureassets are based on actual costs while the remaining 13% are based on the actual historical costs oflike items. Approximately 97% of the library's non-infrastructure assets are based on actual costswhile the remaining 3% are based on the actual historical costs of like items The cost of infrastructureassets (roads and bridges) acquired prior to 2004 are based on current replacement cost adjusted totheir year of acceptance into the parish road system using the U.S. Department of Labor's producerprice index. Donated assets are recorded as capital assets at their estimated fair market value at thedate of donation. The police jury maintains a threshold level of $2,000 or more for capitalizing capitalassets.

The costs of normal maintenance and repairs that do not add to the value of the assets or materiallyextend their useful lives are not capitalized.

All capital assets, other than land, are depreciated using the straight-line method over the followinguseful lives:

EstimatedDescription LivesInfrastructure roads and bridges 20 - 40 YearsBuildings and building improvements 10 - 40 YearsFurniture and fixtures 5 - 1 0 YearsVehicles 5 - 1 0 YearsHeavy equipment 5 - 1 0 YearsOther equipment 5 - 1 0 Years

F. Annual and Sick Leave

Employees of the police jury earn from 5 to 20 days of vacation leave each year, depending on theirlength of service. Vacation leave may not be accumulated unless there is specific approval by thesuperintendent or the secretary-treasurer. Employees earn 10 days of sick leave each year plus 2additional days for each year of service with the parish. Sick leave may be accumulated to a maximumof 90 days. Upon retirement, unused sick leave is used in the retirement benefit computation as earnedservice.

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Employees of the district attorney (paid from the Criminal Court Special Revenue Fund) earn 10 daysof vacation leave each year that may be accumulated. Employees earn 10 days of sick leave each yearplus 2 additional days for each year of employment. Sick leave may be accumulated to a maximumof 90 days.

Regular employees of the LaSalle Parish Library earn from 12 to 22 days of vacation leave each yearwhile professional staff earn from 24 to 34 days, both depending on their length of service. Vacationleave may not be accumulated. Employees earn sick leave at the rate of 12 days each year. Sick leavemay be accumulated to a maximum of 90 days. Upon retirement, unused sick leave is used in theretirement benefit computation as earned service.

At December 31, 2004, employee leave benefits requiring recognition in accordance with GASBCodification Section C60 were determined to be immaterial. The cost of leave privileges, computedin accordance with the previous codification, is recognized as a current-year expenditure within thevarious funds when leave is actually taken or when employees are paid for accrued vacation leaveupon retirement.

2. CASH AND EQUIVALENTS

Under state law, the police jury may deposit funds in demand deposits, interest bearing demand deposits,money market accounts, or time deposits with state banks organized under Louisiana law and national bankshaving principal offices in Louisiana. At December 31, 2004, the police jury has cash, net of overdrafts,(book balances), in total of $913,111.

These deposits are stated at cost, which approximates market. Under state law, these deposits, or the resultingbank balances, must be secured by federal deposit insurance or the pledge of securities owned by the fiscalagent bank. The market value of the pledged securities plus the federal deposit insurance must at all timesequal the amount on deposit with the fiscal agent. These securities are held in the name of the pledging fiscalagent bank in a holding or custodial bank that is mutually acceptable to both parties. Cash (bank balances)at December 31, 2004, are secured in total as follows:

Bank Balances $1,085,465

Federal deposit insurance $102,616Pledged securities (uncollateralized) 2,582,408

Total $2.685,024

Because the pledged securities are held by a custodial bank in the name of the fiscal agent bank rather thanin the name of the police jury, they are considered uncollateralized (Category 3) under the provisions of GASB

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Codification C20.106. However, Louisiana Revised Statute 39:1229 imposes a statutory requirement on thecustodial bank to advertise and sell the pledged securities within 10 days of being notified by the police jurythat the fiscal agent bank has failed to pay deposited funds upon demand. Further, LRS 39:1224 states thatsecurities held by a third party shall be deemed to be held in the police jury's name.

3. RECEIVABLES

The following is a summary of receivables at December 31, 2004:

Taxes - Ad valoremGrants - StateOther

Total

GeneralFund

$172,062108,690

15,453$296,205

SpecialRevenue

Funds$1,927,488

78,65229,430

$2,035,570

Total$2,099,550

187,34244,883

$2,331,775

4. CHANGES IN GENERAL FIXED ASSETS

Depreciation expense for the year was charged to the following governmental functions:

Police Jury:Capital assets not being depreciated - LandCapital assets being depreciated:

Infrastructure - roads and bridgesBuildings and improvementsOffice furniture and equipmentHeavy equipmentOther equipmentVehicles

Total capital assets being depreciated

Total police jury capital assets

Library:Capital assets not being depreciated - LandCapital assets being depreciated:

BooksVehiclesBuildingsFurnitureEquipment

Total library assets being depreciated

BalanceJanuary 1.

$477,208

20,000

AdditionsBalance

Deletions December 31.

$477,208

75,839,5961,729,713

150,4742,284,628

259,29996.896

80,360.606

80,837,814

$44,300147,272

191,572

191,572

75,839,5961,729,713

194,7742,431,900

259,29996,896

NONE 80.552.178

NONE 81,029,386

20,000

513,55244,382

299,40756,67390,292

1,004.306

29,840

7.39037,230

($2,944)

(7,416)fl 0.360)

540,44844,382

299,40756,67390.266

1,031,176

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Total library capital assets

Total capital assets being depreciated

Total capital assets

Less accumulated depreciation for:Infrastructure - roads and bridgesBuildings and improvementsOffice furniture and equipmentHeavy equipmentOther equipmentVehiclesBooks

Total accumulated depreciation

Total capital assets being depreciated (net)

Total capital assets (net)

BalanceJanuary 1. Additions Deletions

BalanceDecember 31.

$1,024,306 $37,230 ($10,360) $1,051,176

$81,583.354

$82.080,562

($74,053,160)(1,529,292)

(286,749)(2,280,346)

(259,299)(114,648)(365.172)

($78,235)(17,875)(47,787)(10,448)

(8,876)(105,351)

$7,416

2,944

($74,131,395)(1,547,167)

(327,120)(2,290,794)

(259,299)(123,524)(467,579)

(78,888,666) (268,572) 10,360 (79,146,878)

S2.436.476

NONE $2.933.684

Depreciation expense for the year was charged to the following governmental functions:

General governmentPublic safetyPublic works (including depreciation on road infrastructure)Health and welfareCulture and recreation

Total

Amount$40,156

2,42689,0709,188

127,732

5. PENSION PLAN

Substantially all employees of the LaSalle Parish Police Jury are members of the Parochial EmployeesRetirement System of Louisiana (System), a cost-sharing, multiple-employer defined benefit pension planadministered by a separate board of trustees. The System is composed of two distinct plans, Plan A andPlan B, with separate assets and benefit provisions. All employees of the police jury are members of PlanA.

All permanent employees working at least twenty-eight hours per week who are paid wholly or in partfrom parish funds and all elected parish officials are eligible to participate in the System. Under Plan A,employees who retire at or after age 60 with at least 10 years of creditable service, at or after age 55 withat least 25 years of creditable service, or at any age with at least 30 years of creditable service are entitledto a retirement benefit, payable monthly for life, equal to 3 per cent of their final average salary for each

-27-



year of creditable service. However, for those employees who were members of the supplemental plan onlybefore January 1, 1980, the benefit is equal to one per cent of final average salary plus $24 for each yearof supplemental-plan-only service earned before January 1, 1980, plus 3 per cent of final-average salaryfor each year of service credited after the revision date. Final average salary is the employee's averagesalary over the 36 consecutive or joined months that produce the highest average. Employees whoterminate with at least the amount of creditable service stated above, and do not withdraw their employeecontributions, may retire at the ages specified above and receive the benefits accrued to their date oftermination. The system also provides death and disability benefits. Benefits are established or amendedby state statute.

The System issues an annual publicly available report that includes financial statements and requiredsupplementary information for the System. That report may be obtained by writing to the ParochialEmployees' Retirement System of Louisiana, Post Office Box 14619, Baton Rouge, Louisiana 70898-4619,or by calling (504) 928-1361.

Under Plan A, members are required by state statute to contribute 9.50 per cent of their annual coveredsalary and the LaSalle Parish Police Jury is required to contribute at an actuarially determined rate. Thecurrent rate is 11.75 per cent of annual covered payroll. Contributions to the system also include one-fourthof one per cent (except Orleans and East Baton Rouge Parishes) of the taxes shown to be collectible by thetax rolls of each parish. These tax dollars are divided between Plan A and Plan B based proportionatelyon the salaries of the active members of each plan. The contribution requirements of plan members andthe LaSalle Parish Police Jury are established and may be amended by state statute. As provided byLouisiana Revised Statute 11:103, the employer contributions are determined by actuarial valuation andare subject to change each year based on the results of the valuation for the prior fiscal year. The LaSalleParish Police Jury's contributions to the System under Plan A for the years ending December 31, 2004,2003, and 2002, were $119,472, $76,944, and $75,142, respectively, equal to the required contributions foreach year.

6. POST RETIREMENT GROUP INSURANCE BENEFITS

The LaSalle Parish Police Jury provides certain continuing health care benefits for its retired employees.Substantially all of the police jury's employees become eligible for these benefits if they reach normalretirement age while working for the police jury. These benefits for retirees and similar benefits for activeemployees are provided through an insurance company whose monthly premiums are paid jointly by theemployee and by the police jury. The police jury recognizes the cost of providing these benefits (policejury's portion of premiums) as an expenditure when paid during the year, which was $483,999, for 2004,Of that amount, $4,413, was for retiree benefits.

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7. RISK MANAGEMENT

The police jury is exposed to various risk of loss related to torts; theft of, damage to, and destruction ofassets; liability; and injuries to employees and others. To handle risk of loss, the police jury maintainscommercial insurance covering; automobile liability; general liability; public officials liability; and worker'scompensation and employer's liability. No claims were paid on any of the policies during the past threeyears which exceeded the policies' coverage amounts.

8. FUND DEFICITS

At year end the Road and Bridge, Criminal Court and Airport funds have deficit fund balances of $72,409,$84,429 and $10,214, respectively. Transfers will be made from the General Fund in an effort to eliminatethese deficits.

9. WORKFORCE INVESTMENT ACT PROGRAM

The LaSalle Parish Police Jury participates in the Workforce Investment Act (WIA) Program fundedthrough the Louisiana Department of Labor by the United States Department of Labor. The police jury isa member of the Sixth District Service Delivery Area (SDA), which consists of Avoyelles, Catahoula,Concordia, Grant, LaSalle, and Winn Parishes. On March 3, 1983, the members of the Sixth DistrictService Delivery Area entered into a multi-jurisdictional consortium agreement for the purpose of carryingout programs and activities as authorized by the WIA. This agreement named the president of the LaSalleParish Police Jury as the authorized representative of all the units of government signatory to the agreement.In addition, the agreement stated that the entity designated as the grant recipient would receive the fundsfor the consortium area and be held ultimately liable for the funds.

The Sixth District Service Delivery Area is comprised of three elements:

1. Private industry council (PIC) - consists of 15 members representing a cross section ofthe SDA population. The PIC is responsible for providing guidance for programdevelopment and for monitoring the operations of the administrative entity.

2. Designated chief elected official - this is a police jury president elected by his peersfrom the Sixth District Service Delivery Area. His responsibilities are the same as thePIC.

3. Administrative entity - the organization selected by the PIC and the consortium toadminister the program. All actions by the administrative entity must be approved bythe PIC and the designated chief elected official.

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The LaSalle Parish Police Jury is the designated grant recipient and the LaSalle Community ActionAssociation, Incorporated, is the designated administrative entity named in its grant award from theLouisiana Department of Labor. As grant recipient, the LaSalle Parish Police Jury has (1) accepted fullresponsibility for funds expended under the grant and (2) assured the Louisiana Department of Labor thatall funds provided will be expended in accordance with the requirements of Workforce Investment Act, allapplicable federal and state regulations and policies and procedures, and the approved job training plan.Furthermore, in the Multi-Jurisdictional Consortium Agreement, the LaSalle Parish Police Jury hasaccepted ultimate liability for the grant funds.

The LaSalle Community Action Association, Incorporated, is the designated administrative entity for theSixth Service Delivery Area to administer and operate the day-to-day activities of the program. Funds areprovided by the Louisiana Department of Labor through a letter of credit arrangement into a bank accountin the name of the police jury. A request is made by the administrative entity to the police jury for fundsto operate the program. The police jury then issues a check to the administrative entity. Grant fundstotaling $3,565,901 were requested by the administrative entity for the year ended December 31,2004. Thefunds are included in the accounts of the police jury.

10. JOINT VENTURE

On February 12,1990, the LaSalle Parish Police Jury entered into a joint venture agreement with the GrantParish Police Jury for the purpose of developing and operating the LaSalle/Grant Parish Landfill. Thepolice juries shared equally in the operation of the landfill. The LaSalle/Grant Parish Landfill governingboard is comprised of six police jurors, three from each parish. The agreement provides that the operationsare totally separate from the LaSalle Parish and Grant Parish Police Jury operations, and have separatechecking accounts, separate bookkeeping, auditing, equipment, et cetera. The revenues were providedequally by both police juries involved.

On September 15, 1994, the district entered into a contract for management of the landfill withTransAmerican Waste Industries, Incorporated. The ownership of the landfill remains with the LaSalleParish Police Jury. TransAmerican is responsible for all permits and licenses; compliance with all federal,state, parish and municipal laws and regulations; and workers' compensation insurance, liability insuranceand auto insurance. Additionally, TransAmerican is solely responsible for properly closing the landfill, forall required post-closure activities, and for compliance with all state, federal, and local laws concerninglandfill closure. Each police jury receives royalties in the aggregate of five per cent of landfill receipts fromsolid waste deposited at the landfill during the contract term. The initial term of the contract is 25 years.The district may renew the contract for an additional term of 25 years.

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11. LITIGATION AND CLAIMS

At December 31, 2004, the police jury is involved in several lawsuits. Although the total amount ofpotential liability cannot be determined at this time, any damages awarded would be covered under thepolice jury's insurance. In the event there is an unfavorable outcome, the police jury's maximum loss wouldbe limited to the insurance deductible amount. No provision for the potential liability has been made in theaccompanying financial statements.

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Required Supplemental Information (Part II)

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Required Supplementary InformationBudgetary Comparison Schedules for Major Funds

For the Year Ended December 31,2004

Preliminary budgets for the ensuing year are prepared by the secretary/treasurer prior to November of eachyear. During November, the finance committee reviews the proposed budgets and makes changes as theydeem appropriate. The availability of the proposed budgets for public inspection and the date of the publichearing on the budgets are then advertised in the official journal. During its regular December meeting, thepolice jury holds a public hearing on the proposed budget in order to receive comments from residents.Changes are made to the proposed budgets based on the public hearing and the desires of the police juryas a whole. The budgets are then adopted during the police jury's regular December meeting, and a notice ispublished in the official journal.

During the year, the police jury receives monthly budget comparison statements which are used as a tool tocontrol the operations of the parish. The secretary/treasurer presents necessary budget amendments to thepolice jury during the year when, in his judgement, actual operations are differing materially from thoseanticipated in the original budget. The jury, during a regular meeting, reviews the proposed amendments,makes changes as they feel necessary, and formally adopts the amendments. The adoption of the amendmentsis included in police jury minutes published in the official journal.

The police jury exercises budgetary control at the function level. Unexpended appropriations lapse at yearend and must be reappropriated in the next year's budget to be expended.

For the year ended December 31, 2004, modified accrual based budgets were adopted for the General Fundand all special revenue funds. Budgetary comparison schedules include the original budgets and allsubsequent amendments.

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Budgetary Comparison Schedule - General FundFor the Year Ended December 31, 2004

Schedule 1

Budgeted AmountsVariance WithFinal Budget

RevenuesTaxes:

Ad valoremOther taxes, penalties, & interest

Licenses and permitsIntergovernmental revenues:

Federal funds - In lieu of taxesState funds:

State revenue sharing (net)Severance taxesFire insurance rebateRural developmentOther

Fees, charges, and commissions for servicesUse of money and propertyOther revenue

Total revenues

ExpendituresCurrent:

General government:LegislativeJudicialElectionsFinance and administrativeOther general government

Public safetyPublic worksHealth and welfareCulture and recreationEconomic development and assistance

IntergovernmentalTotal expenditures

Excess (Deficiency) of Revenues over Expenditures

Other Financing Source (Use)Proceeds from insuranceOperating transfers out

Total other financing source (use)Excess (Deficiency) of Revenues and Other Source

over Expenditures and Other Use

Fund Balance - Beginning

Fund Balance - Ending

Original

$171,4159,00038,260

12,0001,100,000

6,30028,76030.000

1,395,735

191,478127,99741,983173,2603,900

143,45012,98125,6001,20015,29638.100775,245

620,490

(652,000)(652,000)

(31,510)

132,571

$101.061

Final

$171,4159,79739,333

894

12,0001,100,000

6,30029,20230,000

1,398,941

173,600131,44746,132194,36011,691168,85067,89216,6001,50015,30038,100865,472

533,469

(252.000)(252,000)

281,469

132,571

$414,040

Actual

$168,1415,78638,382

1,134

14,8611,054,989

41,18833,414

6,76828,0132.250

1,394,926

180,006151,01165,109290,4869,904

270,06067,89211,166937

12,92240,994

1,100.487

294,439

203,869(246,851)(42,982)

251,457

287,490

$538,947

Positive (Neeative)

($3,274)(4,011)(951)

240

2,861(45,011)41,18833,414

468(1,189)(27,750)(4,015)

(6,406)(19,564)(18,977)(96,126)1,787

(101,210)

5,434563

2,378(2.894)

(235,015)

(239,030)

203,8695.149

209,018

(30,012)

154.919

$124,907

(Continued)

-34-


Budgetary Comparison Schedule - Road and Bridge FundFor the Year Ended December 31, 2004

Schedule 1

Variance WithFinal Budget

Positive

RevenuesTaxes - Ad valoremIntergovernmental revenues:

Federal funds - In lieu of taxesState funds:

State revenue sharing (net)Other

Use of money and propertyTotal revenues

ExpendituresCurrent - Public Works:

Personal servicesOperating servicesMaterials and suppliesTravel and other charges

Total expenditures

Excess (Deficiency) of Revenues over Expenditures

Other Financing Source (Use)Operating transfers inOperating transfers out

Total other financing source (use)Excess (Deficiency) of Revenues and

Other Source over Expendituresand Other Use

Fund Balance - BeginningFund Balance - Ending

Budget

$432,272

10,00040,000

500482,772

589,180221,092218,500

4,0001,032,772

(550,000)

550,000

550,000

NONE

NONENONE

Actual

$424,355

604

13,53981,161

387520,046

579,665206,964123,010

5,580915,219

(395,173)

(91,187)(91,187)

(486,360)

413,951($72,409)

(Negative)

($7,917)

604

3,53941,161

(113)37,274

9,51514,12895,490(1,580)

117,553

(154,827)

(550,000)(91,187)

(641,187)

(486,360)

413,951($72,409)

(Continued)

-35-

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-38-


SUPPLEMENTAL INFORMATION SCHEDULESAs of and for the Year Ended December 31, 2004

SPECIAL REVENUE FUNDS

PUBLIC WORKS FUNDS

ROAD DISTRICT FUNDS

The road district funds account for road maintenance and construction, equipment purchases, and upkeepwithin the boundaries of each district. Financing is provided primarily by ad valorem taxes and staterevenue sharing.

PARISH TRANSPORTATION FUND

The Parish Transportation Fund accounts for state funds provided under the Parish Transportation Act.

AIRPORT FUND

The Airport Fund accounts for the operation of the parish airport and related improvements. Financing isprovided primarily by interest earned on time deposits.

HEALTH UNIT FUND

The Health Unit Fund accounts for the local share of the cost of providing public health services in the parish.Financing is provided by ad valorem taxes and state revenue sharing.

FAIR FUND

The Fair Fund accounts for the maintenance of facilities for the Jena and the North Central Louisiana Fairgrounds. The ad valorem tax and state revenue sharing were discontinued in 1992.

CRIMINAL COURT FUND

The Criminal Court Fund accounts for fines and forfeitures imposed by the Twenty-Eighth Judicial DistrictCourt and district attorney conviction fees in criminal cases. These revenues and operating transfers from theGeneral Fund are used to finance the operation of the criminal court of LaSalle Parish.

-39-

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SUPPLEMENTAL INFORMATION SCHEDULESAs of and for the Year Ended December 31, 2004

COMPENSATION PAID POLICE JURORS

The schedule of compensation paid to police jurors is presented in compliance with House ConcurrentResolution No. 54 of the 1979 Session of the Louisiana Legislature. Compensation of the police jurors isincluded in the legislative expenditures of the General Fund. In accordance with Louisiana Revised Statute33:1233, the police jury has elected the monthly payment method of compensation. The president receives$1,000 per month, and the other jurors receive $700 per month.

-44-

Schedule 6LASALLE PARISH POLICE JURY

Jena, Louisiana

Schedule of Compensation Paid Police JurorsFor the Year Ended December 31, 2004

Eual Douglas $8,450John Carter, President 12,050Jerry Harris 8,450Larkin Jackson 8,450Wayne Richardson 8,450David Crooks 8,450Cullen Paul 273Tim Mitchell 8,177Doyle Deville 8,450Bobby Ray Francis 8,450Ben Reid 8,450

Total $88,100

-45-

Schedule 7


Schedule of Expenditures of Federal AwardsFor the Year Ended December 31, 2004

PASS-THROUGHFEDERAL GRANTOR/ CFDA GRANT FEDERALPASS-THROUGH GRANTOR/ PROGRAM NAME NUMBER NUMBER EXPENDITURES

United States Department of LaborPassed through Louisiana Department of Labor:

Workforce Investment Act - Adult Program 17.258 N/A $1,711,406Workforce Investment Act - Youth Activities 17.259 N/A 1,250,525Workforce Investment Act - Dislocated Workers 17.260 N/A 603,970

Total Department of Labor 3,565,901United States Department of Housing and UrbanPassed through Office of the Governor, Division ofAdministration - Community Development Block Grant -

PF- Program 14.228 581817 48,833

United States Department of InteriorDirect program - Payment in Lieu of Taxes 15.000 N/A 3,867

Total Federal Financial Assistance $3,618,601

FOOTNOTES:(1) The Schedule of Expenditures of Federal Awards was prepared on the modified accrual basis

of accounting.

-46-

Other Reports

-47-

Independent Auditor's Reports on Compliance withLaws, Regulations, Contracts, and Grants,

and Internal Control

The following independent Auditor's reports on compliance with laws, regulations, contracts, and grantsand internal control are presented in compliance with the requirements of Government Auditing Standards,issued by the Comptroller General of the United States; the U. S. Office of Management and Budget (OMB)Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; the Single Audit ActAmendments of 1996; and the Louisiana Governmental Audit Guide, issued by the Society of LouisianaCertified Public Accountants and the Louisiana Legislative Auditor.

-48-

Member American MARY JO FINLEY, CPA, INC. Member Society ofInstitute of Certified Louisiana CertifiedPublic Accountants A PROFESSIONAL CORPORATION Public Accountants


Report on Compliance and Internal Control Over FinancialReporting Based on an Audit of Financial Statements Performed

in Accordance Government Auditing Standards


I have audited the basic financial statements of LaSalle Parish Police Jury as of and for the year endedDecember 31, 2004, and have issued my report there on dated March 21, 2005. I conducted my audit inaccordance with auditing standards generally accepted in the United States of America and the standardsapplicable to financial audits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States.

ComplianceAs part of obtaining reasonable assurance about whether LaSalle Parish Police Jury's basic financialstatements are free of material misstatement, I performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effecton the determination of financial amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of my audit and, accordingly, I do not express such an opinion. The resultsof my tests disclosed one instance of noncompliance that are required to be reported under GovernmentAuditing Standards and are included as finding 04-01 in the accompanying schedule of findings andquestioned costs.

Internal Control Over Financial ReportingIn planning and performing my audit, I considered LaSalle Parish Police Jury's internal control over financialreporting in order to determine my auditing procedures for the purpose of expressing my opinion on thebasic financial statements and not to provide assurance on the internal control over financial reporting. Myconsideration of the internal control over financial reporting would not necessarily disclose all matters inthe internal control over financial reporting that might be material weaknesses. A material weakness is acondition in which the design or operation of one or more of the internal control components does not reduceto a relatively low level the risk that misstatements in amounts that would be material in relation to the basicfinancial statements being audited may occur and not be detected within a timely period by employees inthe normal course of performing their assigned functions. I noted no matters involving the internal controlover financial reporting and its operation that I consider to be material weaknesses.

-49-


LaSalle Parish Police juryJena, Louisiana

Independent Auditor's Report on Complianceand Internal Control Over Financial Reporting, etc.

December 31,2004

This report is intended for the information of the members of LaSalle Parish Police Jury, management ofthe police jury, federal awarding agencies and pass-through entities, and the Legislative Auditor, and is notintended to be and should not be used by anyone other than these specified parties. Although the intendeduse of this report may be limited, under Louisiana Revised Statute 24:513, it is issued by the LegislativeAuditor as a public document.

West Monroe, LouisianaMarch 21,2005

-50-

Member American MARY JO FINLEY, CPA, INC. Member Society ofInstitute of Certified Louisiana CertifiedPublic Accountants A PROFESSIONAL CORPORATION Public Accountants


Report on Compliance With RequirementsApplicable to Each Major Program and Internal Control

Over Compliance in Accordance With OMB Circular A-133


ComplianceI have audited the compliance of LaSalle Parish Police Jury with the types of compliance requirementsdescribed in the U. S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement thatare applicable to its major federal program for the year ended December 31, 2004. LaSalle Parish PoliceJury's major federal program is identified in the summary of auditor's results section of the accompanyingschedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contractsand grants applicable to its major federal program is the responsibility of LaSalle Parish Police Jury'smanagement. My responsibility is to express an opinion on LaSalle Parish Police Jury's compliance basedon my audit.

I conducted my audit of compliance in accordance with auditing standards generally accepted in the UnitedStates of America; the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, LocalGovernments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that I planand perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major federalprogram occurred. An audit includes examining, on a test basis, evidence about LaSalle Parish Police Jury'scompliance with those requirements and performing such other procedures as I considered necessary in thecircumstances. I believe that my audit provides a reasonable basis for my opinion. My audit does notprovide a legal determination on LaSalle Parish Police Jury's compliance with those requirements.

In my opinion, LaSalle Parish Police Jury complied, in all material respects, with the requirements referredto above that are applicable to its major federal program for the year ended December 31,2004. The resultsof my auditing procedures disclosed no instances of noncompliance with those requirements that arerequired to be reported in accordance with OMB Circular A-133.

-51-



Report on Compliance With RequirementsApplicable to Each Major Program andInternal Control Over Compliance, etc.

December 31,2004

Internal Control Over ComplianceThe management of LaSalle Parish Police Jury is responsible for establishing and maintaining effectiveinternal control over compliance with requirements of laws, regulations, contracts and grants applicable tofederal programs. In planning and performing my audit, I considered LaSalle Parish Police Jury's internalcontrol over compliance with requirements that could have a direct and material effect on a major federalprogram in order to determine my auditing procedures for the purpose of expressing my opinion oncompliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.

My consideration of the internal control over compliance would not necessarily disclose all matters in theinternal control that might be material weaknesses. A material weakness is a condition in which the designor operation of one or more of the internal control components does not reduce to a relatively low level therisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that wouldbe material in relation to a major federal program being audited may occur and not be detected within atimely period by employees in the normal course of performing their assigned functions. I noted no mattersinvolving the internal control over compliance and its operation that I consider to be material weaknesses.

This report is intended for the information of the members of LaSalle Parish Police Jury, management ofthe police jury, federal awarding agencies and pass-through entities, and the Legislative Auditor, and is notintended to be and should not be used by anyone other than these specified parties. Although the intendeduse of this report may be limited, under Louisiana Revised Statute 24:513, it is issued by the LegislativeAuditor as a public document.

West Monroe, LouisianaMarch 2 1,2005

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Jena, Louisiana

Schedule of Findings and Questioned CostsFor the Year Ended December 31, 2004

A. SUMMARY OF AUDIT RESULTS

1. The auditor's report expresses an unqualified opinion on the primary government financialstatements of the LaSalle Parish Police Jury.

2. No reportable conditions relating to the audit of the financial statements are reported in theIndependent Auditor's Report on Compliance and Internal Control Over Financial Reporting.

3. One instance of noncompliance material to the financial statements of the LaSalle Parish Police Juryis reported in the Auditor's Report on Compliance and Internal Control Over Financial Reporting.

4. No reportable conditions relating to the audit of the major federal award programs are reported inthe Auditor's Report on Compliance With Requirements Applicable to Maj or Programs and InternalControl Over Compliance.

5. The auditor's report on compliance for the major federal award programs for the LaSalle ParishPolice Jury expresses an unqualified opinion.

6. No audit findings relative to the major federal award programs for the LaSalle Parish Police Juryare reported.

7. The Workforce Investment Act (WIA) Cluster and Louisiana Community Development BlockGrant (LCDBG) were tested as a major programs and consisted of the following individualprograms:

CFDANo.Workforce Investment Act - Adult Program 17.258Workforce Investment Act - Youth Activities 17.259Workforce Investment Act - Dislocated Workers 17.260

8. The threshold for distinguishing Type A and B programs was $300,000.

9. The LaSalle Parish Police Jury was determined to be a low-risk auditee.

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Schedule of Findings and Questioned Costs (Continued)For the Year Ended December 31, 2004

B. FINDINGS - FINANCIAL STATEMENTS AUDIT

04-01 Need to Comply With Budget Act

Finding: The police jury did not comply with the Local Government Budget Act. LSA-R.S.39:1310-1311 requires, among other things, that the police jury amend an individual fund'sbudget when actual revenues and other sources to date plus projected amounts to year-end arefailing to meet budgeted amounts by five percent or more and/or when actual expenditures andother uses to date plus projected amounts to year-end are exceeding budgeted amounts by fivepercent or more. General Fund actual expenditures and other uses exceeded budgeted amountsby approximately 21%. The requirement also applies to funds with anticipated expenditures of$250,000 or more. The police jury had five special revenue funds which met the threshold.Consequently, of those five funds which met the threshold, one had an unfavorable variance inrevenues and other sources. The Road and Bridge fund budgeted revenues and other sourcesexceeded actual amounts by approximately 50%. Furthermore, two funds had unfavorablevariances in expenditures and other uses. The Courthouse Maintenance and Garbage Districtfunds expenditures and other uses exceeded budgeted amounts by approximately 9% and 20%,respectively.

Recommendation: Both management and the finance committee must have monthly financialstatements with which to monitor and control expenditures. Because the police jury as a bodyis ultimately responsible for compliance with laws and regulations, the finance committee shouldtake an active role in reviewing and monitoring financial activity.

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Schedule of Findings and Questioned Costs (Continued)For the Year Ended December 31, 2004

C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERALAWARD PROGRAMS AUDIT

None

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Jena, Louisiana

Summary Schedule of Prior Audit FindingsFor the Year Ended December 31, 2004

The audit report for the year ended December 31, 2003 contained no audit findings.

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JOHN CARTERPresident

LARKIN JACKSONVice President

KAY SMITHSec. Treos.

ABBIE CONLEYAsst. Sec. Treos.

EUAL DOUGLASDistrict 1

JOHN CARTERDistrict 2

JERRY HARRISDistrict 3

LaSalle Parish Police JuryR O. Box 1288 • Jena, Louisiana 71342

Phone (318) 992-2101 • Fax (318) 992^2103LARKIN JACKSON

District 4

WAYNE RICHARDSONDistrict 5

DAVID A. CROOKSDistrict 6

TIM MITCHELLDistrict 7

DOYLE DEVILLEDistrict 8

BOBBY RAY FRANCISDistrict 9

BEN REIDDistrict 10

March 30,2005

Mr. Steve Theriot, CPALegislative Auditor1600 North Third StreetBaton Rouge, Louisiana 70802

RE: Audit Findings

Dear Mr. Theriot:

In response to the findings related to the Budget and the Parish Transportation ofthe LaSalle Parish Police Jury, we offer the following response:

04-01 Need to Comply With Budget Act

Financial reports have been complied monthly to insure that the finance committeeis able to review and more closely monitor the financial activity.

Kay and Abbie have been authorized to work as many hours as necessary to bringthe financial records up to date. This will further provide the information necessaryfor the Police Jury to review and monitor its financial activity.

Sincerely,

Jerry HarrisVice-PresidentLaSalle Parish Police Jury

MEETING DATE: 2nd Monday of each month, 6:00 p.m., Police Jury Meeting Room, Courthouse

lasalle parish police jury - louisianaapp1.lla.la.gov/publicreports.nsf/6124af8f3a0cf9f... · the...

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