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ST. JOHN THE BAPTIST PARISH CLERK OF COURT
Financial Report
Year Ended June 30, 2011
prc?v,5;o:is of state la-A'. UVs repoit is a Dublic 6oo\.\'r,\e \̂. Acopy of *ile reL^d has been submitted to the entity ana oiiior appropriate pvio'̂ c ctt'icials. The report Is available for oubiic •nspection at tne Baton Rouge office of '.he Lecjislaiive AiiCiitor and. --Nmxe appropriaie. at the office cf the parish, c!erk ofcourt.
Refea„Oa,.FEB0 8 2012
TABLE OF CONTENTS
Page
INDEPENDENT AUDITORS REPORT 1-2
BASIC FLNANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS
Statement of net assets 5 Statement of activities 6
FUND FINANCIAL STATEMENTS Govemmental Funds -
Balance sheet 9-10 Statement of revenues, expenditures, and changes in fund balances 11-12
Statement of fiduciary net assets 13
Notes to financial statements 14-27
REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedules:
General Fund 29 East Bank Expense Fund 30
Notes to budgetary comparison schedules 31 Schedule of funding progress 32
INTERNAL CONTROL, COMPLIANCE, AND OTHER INFORMATION Report on intemal conU'ol over financial reporting and on compliance and
other matters based on an audit of financial statements performed in accordance with Government Auditing Standards 34-35
Schedule of audit results and findings 36-37
Summary schedule of prior audit findings 38
Corrective action plan for current year findings 39
C. Burlon Koider. CPA* Russoll F. Champagne. CPA* Victor R. Slavon, CPA' P. Troy Courvillc. CPA* Gerald A Thibodeaux. Jr.,CPA* Robert S. Carter, CPA* Arthur R. Mixon. CPA"
KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS
OFFICES
Tynes E. Mixon. Jr., CPA Allen J. LaBry, CPA Albert R. Leger, CPA.PFS.CSA* Penny Angolle Scruggins, CPA Christine L, Cousin, CPA Mary T. Thibodeaux, CPA Marshall W. Guidry, CPA Alan M. Taylor, CPA James R. Roy. CPA Robert J. Motz, CPA Kelly M. Doucet, CPA Cheryl L. Barlley, CPA Mandy B. Self, CPA Paul L. Delcambre, Jr. CPA Wanda F. Arcoment. CPA. CVA Kristin B. Dauzat. CPA Richard R. Anderson Sr.. CPA Carolyn C. Anderson. CPA Matthew E. Margagllo, CPA Jane R, Heberl, CPA
Retired: Conrad O. Chapman, CPA* 2006 Harry J. Clostio, CPA 2007
183 South 3eadloRd. Lafayette. LA 70508 Phono (337) 232-4141 Fax (337) 232 8660
113 East Bridge St. Breaux Bridge, LA 70517 Phone (337) 332-4020 Fax (337) 332-2867
1234 David Dr. Ste 203 Morgan City, LA 70380 Phono (985) 384-2020 Fax (985) 384-3020
408 West Cotton Street Vilto Platto. LA 70586 Phone (337) 363-2792 Fax (337) 363-3049
332 West Sixth Avenue Oberlin. LA 70655 Phone (337) 639-4737 Fax (337) 639-4568
450 East Main Street New Iberia, LA 70560
Phone (337) 367-9204 Fax (337) 367-9208
200 South Main Street Abbeville, LA 70510
Phone (337) 893-7944 Fax (337) 893-7946
1013 Main Street Franklin. LA 70538
Phone (337) 828-0272 Fax (337) 828-0290
133 East Waddil St. Marksville U\ 71351
Phone (318) 253-9252 Fax (318) 253-8681
621 Main Street Pineville, LA 71360
Phone (318) 442-4421 Fax (318) 442-9833
WEB SITE WWW.KCSRCPAS.COU
' A ProlssS'Orai Accnjnting Corporation
INDEPENDENT AUDITOR'S REPORT
The llonorable Eliana DeFrancesch St. John the Bapnst Parish Clerk of Court Edeard, Louisiana
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of St. John the Baptist Parish Clerk of Court (hereinafter "Clerk of Court"), a component unit of the St. John the Baptist Parish Government, as of and for the year ended June 30, 2011, which collectively comprise the Clerk of Court's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Clerk of Court. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance v̂ 'ith audiiing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the govemmental activities, each major fund, and the aggregate remaining fund information of the Clerk of Court, as of June 30, 2011, and the respective changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America.
Member of: AMERICAN INSTITUl E OF CERTIFIED PUBLIC ACCOUNTANTS
Member of: SOCIETY OF LOUISIANA
CERTIFIED PUBLIC ACCOUNTANTS
As discussed in note ID lo the financial statements, effective July 1, 2010, the Clerk of Court implemented the provisions of Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.
In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2011 on our consideration of the Clerk of Court's intemal control over financial reponing and on our tests of ils compliance with certain provisions of laws, regulations, contracts, and grant agreements and olher matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that tesnng, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Govenmient Auditing Standards and should be considered in assessing the results of our audil.
The budgetary comparison schedules and schedule of funding progress on pages 29 through 31 and page 32, respectively, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on them. The Clerk of Court has nol presented management's discussion and analysis that the Governmenlal Accounting StandiU'ds Board has determined is necessary lo supplement, although not required to be part of, the basic financial statements.
Koider, Champagne, Slaven & Company, LLC Certified Public Accountants
Morgan City, Louisiana December 20, 2011
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Statement of Net Assets June 30, 2011
ASSETS
Current asseis; Cash and interest-bearing deposits Receivables, net Due from olher governments Prepaid expenses
Total curreni assets
Noncurrent assets:
Capital asseis, net
Governmental Acdvities
503,513 38,171 33,765
1,107
576,556
51,271
Total assets
LL\BiLlTIES
Accounts, salaries, and other payables Deferred revenue Long term liabilities
Due in more than one year
Total liabilities
627,827
12,635 3,578
164,786
180,999
NET ASSETS
Invested in capital asseis Restricted for special programs
Unrestricted Total net assets
51,271
47,297
348,260
446,828
The accompanying notes arc an integral part of the financial statements.
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Statement of Activities Year Ended June 30, 2011
Activities Governmental activities:
General government
Expen .scs
Program Revenues
Charges for Services
$ 1,910,027 $ 1,882,364
Nel (Expense) / Revenue and Changes in Net Assets
$ (27,663)
General revenues: Interest and investmenl earnings
Change in net asseis
Nel assets - July 1,2010
Netassets-June 30, 2011
32,273
4,610
442,218
446,828
The accompanyini> notes arc an integral part of the financial statements.
FUND FINANCIAL STATEMENTS
MAJOR FUNDS' DESCRIPTIONS
GENERALFUND
To account for resources traditionally associated with govemments which are not required to be accounted foe in another fund.
SPECIAL REVNUE FUND East Bank Expense Fund
To account for the additional costs assessed in all criminal matters of which the Fortieth Judicial District Court has jurisdiction to be expended for the support ofthe Clerk of Court's branch office on the cast bank of the Mississippi River.
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
ASSETS
Cash and interest-bearing deposils Receivables:
Accounts receivable
Due from other governments
Due from other funds
Prepaid expenses
Total asseis
LL\BIHT1ES AND FUND BALANCE
Liabilities: Accounts payable Accrued payroll liabilities
Due to other funds Deferred revenue
Tolal liabilities
Fund balance: Nonspendable Restricted Unassigned
Total fund balance
Total liabilities and fund balance
Balance Sheet Governmental Funds
June 30, 2011
S
1
General
467,504
20,555 33,765
6,328
1,107
529,259
East Bank Expense
$ 36,009
17,616 -
101,148 -
$ 154.773
Total Governmental
S
L
Funds
503,513
38,171 33,765
107,476
1,107
684,032
$ 12,295 340
-
3,578
16,213
1,107 -
511,939 513,046
S 529,259
$
. —
—
I
--
107,476 -
107,476
47,297 -
47,297
154,773
$ 12,295 340
107,476
3,578
123,689
1,107 47,297
511,939 560,343
$ 684,032
(continued)
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Balance Sheet (continued) Governmental Funds
June 30, 2011
Reconciliation of the governmental funds balance sheet to the staiemeni of of net assets:
Total fund balance for the governmenlal fund al June 30, 2011 $ 560,343
Capital assets used in governmental activities are not financial resources and, therefore, are nol reported in the funds. Those asseis consist of
Furniture, fixtures, and equipment $ 431,442 Less: Accumulated depreciation (380,171) 51,271
Liabililies not due and payable in the current period are therefore are nol reported in the funds
Compensated absences (15,451) Net OPEB obligation (149,335) (164,786)
Tolal net asseis of governmental activities al June 30, 2011 $ 446,828
The accompanying notes are an integral part of the financial statements.
10
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2011
Revenues: Licenses and permits Fees, charges and commissions -
Court costs, fees and charges Recording legal documents Certified copies
Intergovernmental Inieresi earnings
Total revenues
Expenditures: Curreni -
General govemment: Personnel services and related benefits Operating services Maierial and supplies
Capital outlay
Total expenditures
Net change in fund balances
Fund balance, beginning
Fund balance, ending
General
7,365
579,500 935,521 107,871 38,026 32,273
1.700,556
East Bank Expense
Total Governmental
Funds
214,08
214,081
7,365
793,581 935,521 107,871 38,026 32,273
,914,637
1,357,289 186,163 69,346
6,193
1,618,991
81,565
431,481
S 513,046 5
185,125 11,478 5,666
3,966
206,235
7,846
39,451
; 47;297
1,542,414 197,641 75,012
10,159
1,825,226
89,411
470,932
$ 560,343
(continued)
11
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Statement of Revenues, Expenditures, and Changes in Fund Balances (continued) Governmental Funds
Year Ended June 30, 2011
Reconciliation ofthe Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Fund to the Statement of Activities:
Tolal net change in fund balances for the year ended June 30, 2011 per Statement of Revenues, Expenditures and Changes in Fund Balances S 89,411
The change in net assets reported for governmental activities in the statement of activides is different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the coust of those assets is allocated over their estimated useful lives and reported as depreciation expense.
Capital outlay which is considered expenditures on Statement
of Revenues, Expenditures and Changes in Fund Balances 10,159
Depreciaiion expense for the year ended June 30, 2011 (22,380) (12,221)
Some expenses reported in the Statement of Actitives do nol require the use of current financial resources and. iherefore are not reported as expenditures in the govemmental funds:
Prior year compensated absences 17,906 Current year conpensated absences (15,451)
Change in nel OPEB obligation (75,035) (72,580)
Total change in net asseis for the year ended June 30, 2011 per Statement of Activities $ 4,610
The accompanying notes are an intet^ral part of the financial statements.
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Statement of Fiduciary Net Assets June 30, 2011
ASSETS Agency Funds
Cash and interest-bearing deposits $ 2,758,102
LIABILITIES
Due to litigants and others $ 2,758,102
The accompanying notes are an integral part of the financial statements.
13
ST. JOHN THE BAPTIST PARISH CLERK OF COURT
Edgard, Louisiana
Notes to Financial Statements
(1) Summarv of Significant Accounting Policies
The accompanying financial statements of the St. John the Baptist Parish Clerk of Court (Clerk of Court) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note. The accompanying financial siatements have been prepared in conformity with GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - f o r State and Local Governments, issued in June, 1999.
Such accounting and reporting procedures also conform lo the requirements of Louisiana Revised Statutes 24:513 and lo the industry audil guide, Audits of Slate and iMcal Governments.
The following is a summary of certain significant accounting policies:
A. Financial Reporting Entity
As provided by Article V, Section 28 of the Louisiana Constitution of 1974, a Clerk of Court serves as the ex-officio notary public, the recorder of conveyances, mortgages and other acts, and shall have olher duties and powers provided by law. A Clerk of Court is elected for a term of four years.
These financial statements only include funds and activides that are controlled by the Clerk of Court as an independently elected parish official. The Clerk of Court is a component unit of the St. John the Baptist Parish Govemment. The Clerk of Court is fiscally dependent on the St. John the Baptist Parish Governmeni since the Clerk of Court's offices are located in the Parish Courthouse, the upkeep and maintenance of the courthouse is paid by the Parish Govemment and certain operaiing expenditures of the Clerk of Court's office are paid by the Parish Government.
As an independently elected official, the Clerk ofCourt is solely responsible for the operations of her office, which includes the hiring or retention of employees, authority over budgeting, responsibility for deficits, and the receipt and disbursement of funds. Certain units of local governmeni over which the Clerk of Court exercises no oversight responsibility, such as the parish school board, other independently elected officials, and municipalities within the parish, are excluded from the accompanying financial statements. These units of governmeni are considered separate reporting eniiiies and issue financial statements separate from that of the Clerk ofCourt.
14
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Notes to Financial Statements (continued)
B. Basis of Presentation
Government-Wide Financial Statements
The statement of net assets and statement of activities display informadon about the reporting governmeni as a whole. They include all funds of the reporting entity, which are considered to be governmenlal activities. Fiduciary funds are nol included in the government-wide financial statements. Fiduciary funds are reported only in the Statement of Fiduciary Net Asseis at the fund financial statement level.
The statement of activides presents a comparison between direct expenses and program revenues for each function of the Clerk of Court's governmenlal activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular funcdon. Program revenues include (a) fees and charges paid by the recipients for goods or services offered by the programs, and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particulaj* program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Siatements
The accounts of the Clerk of Court are organized and operated on the basis of funds. A fund is an independent fiscal and accouniing entity with a separate set of self-balancing accounts. Fund accounting segregates funds according lo their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.
The various funds of the Clerk of Court are classified into two categories: governmental and fiduciary. The emphasis on fund financial statements is on major governmental funds. A fund is considered major if it is the primary operating fund of the entity or meets the following criteria:
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmenlal fund are at least 10 percent of the corresponding total for all funds of that category or lype; and
b. Tolal asseis, liabilities, revenues, or expenditures/expenses of the individual governmental fund are at least 5 percent of the corresponding total for all governmenlal funds combined.
15
ST. JOHN THE BAPTIST PARISH CLERK OF COURT
Edgard, Louisiana
Notes to Financial Statements (continued)
The major funds of the Clerk of Court are described below:
Governmental Funds -
General Fund The General Fund, as provided by Louisiana Revised Statute 13:781, is the
principal fund of the Clerk of Court and is used to account for the operadons of the Clerk of Court's office. The various fees and charges due lo the Clerk of Court's office are accounted for in this fund. General operating expenditures are paid from this fund.
East Bank Expense Special Revenue Fund
As provided by Louisiana Revised Statute 13:851, an addiuonal cost is assessed in all criminal cases of which the Fordeth Judicial District Court has jurisdicdon. This additional cosl provides support for the Clerk of Court's branch office located on the east bank of the Mississippi River. The collection of the addiuonal cost and related expenses of the east bank office are accounted for in this fund.
Additionally, the Clerk ofCourt reports the following fund lype:
Fiduciary Funds -
Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of other funds within the Clerk of Court. The funds accounted for in this category by the Clerk of Court are the agency funds. The agency funds are as follows:
Advance Deposit Fund - accounts for advance deposils on suits filed by litigants.
Registry of the Court Fund - accounts for funds which have been ordered by the court to be held until judgment has been rendered in court lidgadon.
Criminal Juror Fund - accounts for funds from the parish for criminal court proceedings pending court actions.
Measurement Focus/Basis of Accouniing
Measurement focus is a term used lo describe "which" transactions are recorded within the various financial statements. Basis of accouniing refers to "when" transactions are recorded regardless of the measurement focus applied.
16
ST. JOHN THE BAPTIST PARISH CLERK OF COURT
Edgard, Louisiana
Notes lo Financial Statements (continued)
Measurement Focus
On the government-wide statement of net asseis and the statement of activities, governmenlal activities are presented using the economic resources measurement focus as defined in item b. below. In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate:
a. The governmental fund utilizes a "current financial resources" measurement focus. Only curreni financial asseis and liabilities arc generally included on its balance sheet. Their operating statement presents sources and uses of available expendable financial resources during a given period. This fund uses fund balance as its measure of available expendable financial resources at the end of the period.
b. The government-wide financial statement utilizes an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operadng income, changes in nel assets (or cost recovery) and financial posiuon. All asseis and liabililies (whether curreni or noncurrent) associated with its acdvides are reporied.
Basis of Accounting
The government-wide statement of net assets and statement of acdvides and the staiemeni of fiduciary nel asseis are presented using the accrual basis of accounting. Under the accrual basis of accounnng, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, asseis, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.
Governmental fund financial statements are reported using the curreni financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered lo be available when they are collectible within the current period or soon enough thereafter lo pay liabilides of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures (including capital outlay) generally are recorded when a liability is incurred, as under accrual accouniing. However, debt service expenditures are recorded only when payment is due.
17
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Notes to Financial Statements (continued)
D. Assets, Liabilities and Equity
Cash and interest-bearing deposits
For purposes of the statement of net assets, cash and interest-bearing deposits include all demand accounts, savings accounts, and certificates of deposils of the Clerk of Court.
Capital Asseis
Capital assets, which include furniture, fixtures, and equipmenl, are reported in the governmenlal activities column in the government-wide financial statements. Capital assets are capitalized at historical cost or esdmated cost if historical cosl is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The Clerk of Court maintains a threshold level of $500 or more for capitalizing assets. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asseis lives are not capitalized.
Depreciation of ail exhausdble capital as.sets is recorded as an expense in the statement of activities, with accumulated depreciadon reflected in the statement of net assets. Depreciadon is provided over the assets* esdmated useful lives using the straight-line method of depreciaiion. The range of estimated useful lives by type of asset is as follows:
Furniture, fixtures and equipment 5-10 years
Compensated Absences
Employees of the Clerk of Court's office earn 5 to 20 days of vacation leave each year depending on length of service. In addition, employees earn 12 days of sick leave each year. Employees may carry over 5 days of vacation leave based on their anniversary date. Sick leave may accumulate indefinitely up to two hundred forty (240) hours. Upon resignation or retirement, employees may, at the discretion of the Clerk of Court, be paid for unused vacation at the employee's current rate of pay.
ST. JOHN THE BAPTIST PARISH CLERK OF COURT
Edgard, Louisiana
Notes to Financial Statements (continued)
Equity Classificadons
In the govemment-wide statements, equity is classified as net asseis and displayed in three components:
a. Invested in capital assets, net of related debt - consists of capital assets including restricted capital assets, net of accumulated depreciadon and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisidon, construcdon, or improvement of those assets.
b. Restricted net asseis - consists of net assets with consiraints placed on their use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through consdtudonal provisions or enabling legisladon.
c. Unrestricted net assets - all other nel assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt."
Effecdve July 1, 2010, the Clerk of Court implemented the provisions of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. Fund balance for the Clerk of Court's governmenlal funds is displayed depicting the relative strength of the spending constraints placed on the purposes for which resources can be used. In the governmenlal fund financial statements, fund balances are classified as follows:
a. Nonspendable - amounts that cannot be spent either because they are in nonspendable form (such as inventories and prepaid amounts) or because they are legally or contractually required to be maintained intact.
b. Restricted - amounts that can be spent only for specific purposes because of consututional provisions or enabling legisladon or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments.
c. Committed - amounts that can be used only for specific purposes determined by a formal action of the government's highest level of decision-making authority.
d. Assigned - amounls the governmeni intends lo use for specific purposes that do nol meet the criteria to be classified as restricted or committed.
c. Unassigned - amounts that arc available for any purpose; these amounts can be reported only in the Clerk of Conn's General Fund.
19
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Notes to Financial Siatements (condnued)
Expenditures and Expenses
In the government-wide financial statements, expenses are classified by funcdon. In the fund financial statements, expendilurcs are classified by character and function.
Budgetary and Budgetarv Accounting
The Clerk of Court follows these procedures in establishing the budgetary data reflected in the financial statements:
1. A proposed budget is prepared and submitted lo the Clerk ofCourt for the fiscal year no later than fifteen days prior to the beginning of each fiscal year.
2. A summary of the proposed budget is published and the public is nodfied that the proposed budget is available for public inspecdon. At the same Ume, a public hearing is called.
3. A public hearing is held on the proposed budget at least ten days after publication of the call for a hearing.
4. After the holding of the public hearing and compledon of all acdon necessary to finalize and implement the budgei, the budget is legally adopted prior to the commencement of the fiscal year for which the budgei is being adopted.
5. All budgetary appropriations lapse al the end of each fiscal year.
6. The budgei is adopted on a basis consistent with generally accepted accoundng principles (GAAP). Budgeted amounts included in the accompanying financial statements are as originally adopted or as finally amended by the Clerk ofCourt.
Bad Debts
Uncollecdble amounls due for receivables are recognized as bad debts by direct write-off at the ume informadon becomes available which would indicate the uncollectibility of the pardcular receivable. Although the specific charge-off method is not in conformity with generally accepted accoundng principles (GAAP), no allowance for uncollectible accounts receivable was made due to immateriality al June 30, 2011.
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Notes lo Financial Statements (condnued)
(2) Cash and Interest-Bearing Deposits
Under stale law, the Clerk of Court may deposit funds within a fiscal agent bank organized under the laws of the State of Louisiana, the laws of any other slate in the union, or the laws of the United States. The Clerk of Court may invest in United States bonds, treasury notes, or certificates and lime deposils of stale banks organized under Louisiana law and nadonal banks having principal offices in Louisiana. At June 30, 2011, the Clerk of Court has cash and cash equivalents (book balances) totaling $3,261,615 as follows:
Governmental Fiduciary Acdvides Funds Total
Cash and interest-bearing deposits $ 503,513 $2,758,102 $3,261,615
Under state law, deposits, (or the resulfing bank balances) must be secured by federal deposit insurance or similar federal security or the pledge of securities owned by the fiscal agent bank. The market value of the pledged securifies plus the federal deposit insurance must al all umes equal the amount on deposit with the fiscal agent bank. These securities are held in the name of the Clerk of Court or the pledging fiscal agent bank by a holding or custodial bank that is mutually acceptable to both parties. Deposit balances (bank balances) at June 30, 2011, are secured as follows:
Bank balances $ 3.534,767
Federal insurance $ 2,334,767
Pledged securities 1,200,000
Total federal insurance and pledged securifies $ 3,534,767
Custodial credit risk for deposils is the risk that in ihe event of the failure of a depository financial institution, the Clerk of Court's deposils may not be recovered or will not be able to recover collateral securifies that are in the possession of an outside party. As of June 30, 2011, the Clerk of Court's total bank balances were fully insured and collateralized with securities held in the name of the Clerk of Court by the pledging financial institution's agent and iherefore not exposed to custodial credit risk.
(3) Due From Olher Governments
Amounls due from other govemments consist ofthe following at June 30, 2011:
Government-wide and fund financial statements: St. John the Bapdsl Parish Sheriffs Department State of Louisiana District Attorney for the Fortieth Judicial District District Court for the Fortieth Judicial District Louisiana Department of Public Safely
Total
$
$
26,966
3.828
1,290
256 1,425
33,765
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Notes lo Financial Statements (continued)
(4) Capital Assets
Capital asset balances and aefivity for the year ended June 30, 2011 is as follows:
Furniture, fixtures and equipment
Less; Accumulated depreciafion
Nel capital assets
Depreciafion expense of $22,380 was charged to the general governmeni funcfion.
(5) Accounts and Other Payables
The accounts and other payables consisted of the following at June 30, 2011:
(6)
Balance 07/01/10
$ 421,283 357,791
S 63,492
Additions $ 10,1-59
22,380
$ (12,221)
Deiefions $
-
$
Balance 06/30/11
$ 431,442 380,171
$ 51,271
Accounts Accrued payroll liabilities
Tolal
Pension Plan
Governmental Acfivifies
$ 12,295 340
$ 12,635
Plan Description. Substanfially all employees of the Clerk of Court are members of the Louisiana Clerks of Court Refirement and Relief Fund (System), a cost sharing, multiple-employer defined benefit pension plan administered by a separate board of trustees.
All regular employees who are under the age of 60 at the fime of original employment are required to participate in the System. Employees who retire at or after age 55 with at least 12 years of credited service are enfided to a refirement benefit, payable monthly for life, equal to 3% of their final-average salary for each year of credited service, not to exceed 100% of their final-average salary. Final-average salary is the employee's average salary over the 36 consecutive or joined months that produce the highest average. Employees who terminate with al least 12 years of service and do nol withdraw their employee conlribufions may retire at or after age 55 and receive the benefit accrued to their dale of termination. The System also provides death and disability benefits. Benefits are established and amended by stale statute.
The Clerk of Court Retirement and Relief Fund issues an annual publicly available financial repori that includes financial sialements and required supplementary informafion. That report may be obtained by writing lo the Clerk of Court Retirement and Relief Fund. 11745 Bricksome Ave., Suite B-1, Baton Rouge, Louisiana 70816.
97
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Notes lo Financial Statements (confinued)
Funding Policy. Plan members are required by state statute to contribute 8.25% of their annual covered salary and the Clerk of Court is required to contribute at an actuarially determined rate. The curreni rate is 17.75% of annual covered payroll. Contribufions to the System also include one-fourth of one percent of the taxes shown to be collecfible by the lax rolls of each parish. The contribution requiremenis of plan members and the Clerk of Court are established and may be amended by state statute. As provided by R.S. 11:103, the employer conlribufions are determined by actuarial valuafion and are subject to change each year based on the results of the valuafion for the prior fiscal year. The Clerk of Court pays employee and employer pension contribufions. The Clerk of Court's conlribufions to the System for the years ending June 30, 2011, 2010, and 2009, were $261,607, 5232,268, and $189,785, respecfively, equal to the required conlribufions for each year.
(7) Postemployment Benefits Other than Pensions
Effective with the fiscal year beginning July 1, 2009, the Clerk of Court implemented Governmeni Accounfing Standards Board Statement Number 45, Accounting and Financial Reporting hy Employers for Postemployment Benefits Other than Pensions (GASB 45). The requirements of GASB 45 are being implemented prospecfively. Accordingly, for financial reporfing purposes, no liability is reported for postemployment benefits liability al the date of transition.
Plan Description. The Clerk of Court's defined benefit postemployment health care plan ("the Refiree Health Plan") provides medical, dental and life insurance benefits lo eligible refired employees and their beneficiaries. The Redree Health Plan is affiliated with the Louisiana Clerks of Court Insurance Trust ("LCCIT"), an agent mulfiple-employer postemployment healthcare plan administered by the Louisiana Clerks of Court Associafion. The plan does not issue a publicly available financial report.
Funding Policy. The contribufion requirements of plan members and the Clerk of Court are established and may be amended by the LCCIT board of trustees. The Clerk of Court contributes 50% of the cost of the current-year premiums for eligible retired plan members and 0% of the cost for refired plan members' spouses and dependent children. For fiscal year 2011, the Clerk of Court contributed $15,758 to the plan and the retirees contributed $23,525.
Annual OPEB Cosl and Net OPEB Obligafion. The Clerk of Court's annual other postemployment benefit ("OPEB") cost (expense) is calculated based on the annual required contribution of the employer ("ARC"), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents the level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabililies (or funding excess) over a period not to exceed thirty years.
23
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Notes lo Financial Statements (continued)
The following table shows the components of the Clerk of Court's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Clerk of Court's net OPEB obligation to the Retiree Health Plan:
Annual required contribufion $ 90,374 Interest on nel OPEB obligafion 2,972 Adjustmeni to annual required contribufion (2,553)
Annual OPEB cost (expense) 90,793 Contribufions made (15,758)
Increase in net OPEB obligation 75.035 Net OPEB obligafion - beginning of y&m 74.300
Net OPEB obligation - end of year $ 149.335
The Clerk of Court's annual OPEB cosl, the percentage of annual OPEB cost contributed to the plan, and the nel OPEB obligafion for fiscal year 2011 and 2010 are as follows:
Fiscal Percentage of Year Annual Annual OPEB Net OPEB Ended OPEB Cost Cosl Contributed Obligafion
6/30/2011 $90,793 17.4% 5149,335 6/30/2010 $87,821 15.4% 574,300
The year ended June 30, 2010 was the implementafion year of GASB 45 and the Clerk of Court has elected to implement the standard prospectively. Therefore, comparafive data is only available for two years. In future years, three-year trend informafion will be presented.
Funded Status and Funding Progress. As of July I, 2009, the actuarial accrued liability for benefits was $1,022,249, all of which was unfunded. The covered payroll (annual payroll of acfive employees covered by the plan) was $922,324, and the ratio of the unfunded actuarial accrued liability to the covered payroll was I 10.8%.
The projection of future benefit payments for an ongoing plan involves esfimates ofthe value of reported amounts and assumptions about the probability of occurrence of events into the future. Examples include assumpfions about future employment, mortality, and the healthcare cosl trend. Amounts determined regarding the funding status of the plan and the annual required coniributions of the employer are subject lo confinual revision as actual results are compared wilh past expectafions and new estimates are made about the future. The schedule of funding progress, presented as required supplementary informafion following the notes lo the financial statements, presents multiyear trend information about whether the actuarial value of the plan asseis is increasing or decreasini: over time relafive to the actuarial accrued liabilifies for the benefits.
24
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Notes to Financial Statements (continued)
Methods and Assumpfions. Projecuons of benefits for financial reporfing purposes are based on the substanfive plan (the plan as understood by the employer and plan members) and include the lype of benefits provided at the time of each valuafion and the historical pattern of sharing or benefit costs between the employer and plan members to that point. The actuarial methods and assumpfions used include techniques that are designed to reduce short term volatility in actuarial accrued liabililies and the actuarial value of assets, consistent with the long-term perspective of the calculafions.
In the July 1, 2009 actuarial valuafion, the entry age actuarial cost method was used. Based on the Clerk of Court's short-term investment portfolio, a discount rate of 4.0% was used. In addition, the actuarial assumpfions included an annual healthcare cost trend rate of 10% inifially, reduced by decrements to an ulfimate rate of 5.5% after 10 years. The Clerk of Court's unfunded actuarial liability is being amorfized as a level percentage of projected payroll on an open basis over 30 years.
(8) Changes in Long-term liabilities
The following is a summary of long-term liabiUly transacfions of the Clerk of Court for the year ending June 30, 2011:
07/01/10 Addifions Reducfions 06/30/11
Compensated Absences $ 17,906 $ 15,451 $ 17,906 S 15,451
In prior years, compensated absences have typically been liquidated by the Clerk of Court's General Fund.
(9) Fund Balance
Fund balance is classified as nonspendable, restricted, committed, assigned, and/or unassigned based primarily on the extent to which the Clerk of Court is bound to observe constraints imposed upon the use of the resources in the govcrnmenlai funds. The constraints placed on fund balance for the major governmental funds and all other governmental funds are presented as follows:
East Bank General Expense Tolal
Fund balances: Nonspendable -
Prepaid items
Restricted for -Special programs
Unassigned Total fund balances
S 1,107
-
511,939
$ 513,046
S
47,297
_
$ 47,297
$ 1,107
47,297
511,939 5 560,343
25
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Notes lo Financial Statements (continued)
(10) Changes in Agencv Fund Balances
A summary of changes in agency fund unsettled deposils follows:
Year Ended June 30, 2011
,gency funds: Advance Deposit Registry of Court Criminal Juror
Totals
Unsettled Deposils
at Beginning of Year
$1,917,963 634,789
5,375 $2,558,127
Addifions
$1,239,290 319,063
57,313 $1,615,666
Reductions
$1,023,633 334,943
57,115 $1,415,691
Un.settled Deposils at End of Year
52,133,620 618,909
5,573 52,758,102
(11) Deferred Compensation Plan
The Clerk of Court offers its employees participafion in the Louisiana Public Employees Deferred Compensation Plan adopted by the Louisiana Deferred Compensafion Commission and established in accordance with Internal Revenue Code Secfion 457. Complete disclosures relafing to the Plan are included in the separately issued audil report for the Plan, available from the Louisiana Legislafive Auditor, Post Office Box 94397, Baton Rouge, Louisiana 70804-9397.
The Clerk of Court's conlribufions lo the Plan for the year ending June 30, 2011, 2010, and 2009, were $37,973, 536,772, and $34,127, respecfively.
(12) Risk Management
The Clerk of Court is exposed lo risks of loss in the areas of auto liability, professional liability and workers' compensafion. All of these risks are handled by purchasing commercial insurance coverage. There have been no significant reducfions in the insurance coverage during the year.
(13) Excess Fund Balance
LSA-RS 13:785 requires that every four years (at the close ofthe term of office), the Clerk of Court must pay the parish treasurer the porfion of the General Fund's fund balance that exceeds one-half of the revenues of the Clerk of Court's last year of her term of office. The potential liability to the parish is limited to amounts received by the Clerk of Court from the parish for necessary office furniture, equipment, and record books. At June 30, 2011 there was no amount due the parish treasurer because fund balance did not exceed one-half of recorded revenues.
26
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard. Louisiana
Notes to Financial Statements (continued)
(14) Expenditures of the Clerk of Court Paid bv the St. John the Bapfist Parish Govemment
The Clerk of Court's office is located in the St. John the Baptist Parish Courthouse. The upkeep and maintenance of the courthouse are paid by the St. John the Bapfist Parish Council. In addifion, the Parish Council also pays some of the Clerk of Court's operafing expenditures. These expenditures are not reflected in the accompanying financial statements.
REQUIRED SUPPLEMENTARY INFORMATION
28
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Budgetary Comparison Schedule General Fund
Year Ended June 30, 2011
Budget
Original Final Actual
Variance with Final Budget
Pos i five (Negative)
Revenues: Licenses and permits Fees, charges and commissions
8,000 $ 7,100 $ 7,365 S 265
Court costs, fees and charges Fees for recording legal documents Fees for certified copies
Intergovemmental Interest earnings
Total revenues
Expenditures: Current -
General govemment: Personnel services and related benefits Operafing services Material and supplies
Debt service
Capital oufiay
Total expenditures
Net change in fund balances
Fund balance, beginning
Fund balance, ending
493,000 914,000
70,000 80,000 50.000
1,615,000
1,396,000 191,800 95,200 23,000 20,000
1,726,000
(111,000)
(188.733)
5 (299,733)
569,500 879,500
87,900 48,700 31,000
1,623,700
1,286,250 208,900
87,700 20,000 20,000
1,622,850
850
186,966
$ 187,816
579,500 935,521 107,871 38,026 32,273
1,700,556
1,357,289 186,163 69,346
-6,193
1,618,991
81,565
431,481
$ 513,046
10,000 56,021 19,971
(10,674) 1,273
76,856
(71,039) 22,737 18,354 20,000 13,807
3,859
80,715
244,515
$ 325,230
See accompanying notes to budgetary comparison schedules.
29
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Budgetary Comparison Schedule East Bank Expense Fund Year Ended June 30, 2011
Variance with Final Budeet
Revenues: Fees, charges and commissions -
Court costs, fees and charges Interest earnings
Total revenues
Expenditures: Curreni -
Personnel services and related benefits Operating services Material and supplies
Capital outlay Tolal expenditures
Nel change in fund balances
Fund balance, beginning
Fund balance, ending
Bu( Original
5 145,000 -
145,000
154,000 11,000 3,000 5,000
173,000
(28,000)
8,083
5 (19,917)
Igei
$
-
L
Final
185,000 85
185,085
158,150 12,000 4,500 5,000
179,650
5,435
36,119
41,554
Actual
S 214,081 -
214,081
185,125 11,478 5,666 3,966
206,235
7,846
39,451
S 47,297
Posifive (Negative)
$ 29,081 (85)
28,996
(26,975) 522
(1,166) 1,034
(26,585)
2,411
3,332
$ 5,743
See accompanying notes to budgetary comparison schedule.
30
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Notes to Budgetary Comparison Schedules
(1) Basis of Accounting
The budgei is adopted on a basis consistent with accounfing principles generally accepted in the United Slates of America (GAAP). Budgeted amounls are as originally adopted or as finally amended by the Clerk of Court.
(2) Excess of Expenditures over Appropriafions
The following fund incurred expenditures in excess of appropriafions for the year ended June 30,2011:
Special Revenue Fund: East Bank Expense Fund $ 26,585
The excess expenditures were covered by available fund balance in the respective fund.
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Schedule of Funding Progress Postemployment Benefits Other than Pensions
YearEndedJune 30,2011
Actuarial Valuation
Date
6/30/2009
Actuarial Value of
Assets (a)
$0
Actuarial Accrued Liabihty
(AAL)-Entry Age (b)
$1,022,249
Unfunded AAL
(UAAL) (b-a)
$1,022,249
Funded Ratio (a^)
0.0%
Covered Payroll
(c)
$922,234
UAAL as a Perceritage Of Covered
Payroll ((b-a)/c)
110.8%
32
INTERNAL CONTROL, COMPLIANCE, AND OTHER INFORMATION
33
KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC Ru!rjrF.'c.l:lnp'g'';.cHA- CERTIFIED PUBLIC ACCOUNTANTS Victor R Slaven, CPA- O F F I C E S P. Troy Courville, CPA* ^ ^ ^ ^ ^ ^ ^ ^ ^ ^
Gerald A. Thiboduiiux. Jr .CPA' 133 g ^ , j ^ 3^^^ ,^ f^^ ^ ^ ^ast Main Street
Robert S. Carter, CPA' Laiayetle.LA 70608 New Iberia. LA 70560 Arthur R. Mixon. CPA' p^^^^ (33^^ 232-4141 Phone (337) 367-9204
Fax (337) 232-8660 Fax (337) 367-9208 Tynes E. Mixon.Jr. . C^A
Allen J. LaBry. CPA 113 EastBridge Si. 200 South Main Street Albert R. L^ger. CPA.PFS.CSA' Breai^x Br.dge. LA 70517 Abbevil le. LA 70510 Penny Angelie Scruggins. CPA p ^ ^ ^ (337j 332.4020 Phone (337) 893-7944 Christine L. Cousin. CPA ^.^^ ,337j 332.2867 Fax (337) 893-7946 MaryT.Th ibodeaux. CPA
MarshaWW Gaa i y .CP f^ 1234 David Dr. Ste 203 1013 Main Sireet Alan M.Taylor. CPA Morgan City. LA 70380 Franklin, LA 70538 James R. Roy, CPA p ^ ^ ^ ^gggj 384-2020 Phono (337) 828-0272 Robert J. Metz. CPA P^,, ^gggj 384-3020 Fax (337) 828-0290 Ke l l yM. Douce: . CPA
Cheryl L. Bariley. CPA ^ g ^ ^ ^ Cotton Street 133 East Waddi l St.
I ? n ^ ^ " ' t ' . ^ ' " ^ ' ' ' ^ " ^ - ^ ^ ^ °^86 Marksville LA 71351 Paul L Delcambre. Jr. U ' A f ^ ^ ^ (337j 3C3-2792 Phone (318) 253-9252 Wanda F. Areement. CPA. CVA Fax (337) 363-3049 Fax (318) 253-8681 Kristin B. Dauzat. CPA
Richard R. Anderson Sr.. CPA 332 West Sixth Avenue 621 Main Street Carolyn C. Andersu.1. CPA ^ ^ ^ - ^ ^ LA 70655 Pineville. LA 71360
Phone (337) 639-4737 Phone (318) 442-4421 Fax (337) 639-4568 Fax (318) 442-9833 Retired:
Conrad 0 . Chapman. CPA' 2 M 6 Harry J .Clost io .CPA 2007 W E B S I T E
. ^ , . WWW.KCSRCPAS.COM • A Profassona. Acctunting Coruo'at.a."
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER
MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDFIING STANDARDS
The Honorable Eliana DeFrancesch St. John the Bapnst Parish Clerk ofCourt Edgard, Louisiana
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Si. John the Baptist Parish Clerk of Court (hereinafter "Clerk of Court"), a component unit of the St. John the Baptist Parish Government, as of and for the year ended June 30, 2011, which collectively comprise the Clerk of Court's basic financial statements, and have issued our report thereon dated December 20, 2011. Wc conducted our audit in accordance with audiiing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control over Financial Reporting
The Clerk ofCourt and management is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the Clerk of Court's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk of Court's internal control over financial reporting. Accordingly, we do nol express an opinion on the effectiveness of the Clerk of Court's iniernal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. Ilowever, as described in the accompanying schedule of audit results and findings, we identified a certain deficiency in internal control over financial reporting that we consider to be material a weakness.
Member ol: Member of: AMERICAN INSTITUTE OF " ^ 4 SOCIETY OF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS " CERTIFIED PUBLIC ACCOUNTANTS
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or deled and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Clerk of Court's financial siatements will nol be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying schedule of audit results and findings as item 201 l-l to be a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Clerk of Court's financial statements are free of material misstatement, we performed tesls of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tesls disclosed an instance of noncompliance or other matter that is required lo be reported under Government Auditing Standards and is described in the accompanying schedule of audit results and findings as item 2011-2.
The Clerk of Court's responses to the findings identified in our audil are described in the accompanying corrective action plan for current year findings. We did nol audit the Clerk of Court's responses and, accordingly, we express no opinion on the responses.
This report is intended solely for the information and use of the Clerk of Court, management and others within the organization, and the Louisiana Legislative Auditor and is not intended to be and should not be used by anyone other than these specified parties. Although the intended use of this report may be limited under the provisions of Louisiana Revised Statutes 24:513, this report is distributed by the Louisiana Legislative Auditor as a public document in accordance with Louisiana Revised Statute 44:6.
Koider, Champagne, Slaven & Company, LLC Certified Public Accountants
Morgan City, Louisiana December 20, 2011
35
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Schedule of Audit Results and Findings Year Ended June 30, 2011
Part I. Summary of Auditor's Results:
The auditor's report expresses an unqualified opinion on the financial statements ofthe governmental activities, each major fund (General Fund and East Bank Expense Fund), and the aggregate remaining fund information.
A material weakness in internal control was disclosed by the audit ofthe financial statements.
The results of our test disclosed an instance of noncompliance which is required lo be reported under Governmeiu Auditing Standards and is shown as item 2011-2 in Part II.
A management letter was nol issued.
Part II. Findings required to be reported in accordance with Governmental Auditing Standards:
A. Internal Control
2011-1 Segregafion of dufies
CONDITION: Accouniing and financial functions are not adequately segregated.
CRITERIA: Internal control is a process effected by those charged with governance, management, and other personnel designed to provide reasonable assurance about the achievement of objecfives with regard to reliability of financial reporfing, effecfiveness and efficiency of operalions, and compliance with applicable laws and regulafions. The Clerk of Court's internal control over financial reporting includes those policies and procedures that pertain to the Clerk of Court's ability to record, process, summarize, and report financial data consistent with the asserfions embodied in either annual financial statements or interim financial statements, or both.
CAUSE: The cause of the conditions is the failure to design and implement policies and procedures necessary to achieve adequate internal control.
EFFECT: Failure to adequately segregate accounting and financial functions increases the risk that errors and/or irregularities including fraud and/or defalcations may occur and not be prevented and/or detected.
RECOMMENDATION: The additional costs required to achieve the desired benefit may not be economically feasible.
36
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Schedule of Audil Results and Mndings (confinued) Year Ended June 30, 2011
B. Compliance
2010-3 Budget Variance
CONDITION: Budget variance in excess of 5% was incurred in the General Fund.
CRITERIA: Louisiana Revised Statute 39:1311 states, in perfinent part, the following:
"A. The adopted budget and any duly authorized adopted amendments shall form the framework from which the chief executive or administrative officers and members of the governing authority of the polifical subdivision shall monitor revenues and control expenditures. The chief executive or administrafive officer for a political subdivision subject to public participafion shall advise the governing authority or independently elected official in wrifing when:
(1) Total revenue and other sources plus projected revenue and other sources for the remainder of the year, within a fund, are failing to meet total budgeted revenues and other sources by five percent or more.
(2) Tolal actual expendilurcs and other uses plus projected expenditures and other uses for the remainder of the year, within a fund, are exceeding the total budgeted expenditures and olher uses by five percent or more.
(3) Actual beginning fund balance, within a fund, fails to meet esfimated beginning fund balance by five percent or more and fund balance is being used to fund current year expenditures.
CAUSE: The condifion results from a failure to properly monitor the revenues and expenditures ofthe East Bank Expense Fund.
EFFECT: The Clerk of Court may not prevent and/or detect compliance violations due to over expenditure of the appropriated budget, and/or errors or irregularities on a fimely basis.
RECOMMENDATION: We recommend that the Clerk of Court periodically compare actual aefivity to budgeted amounls and adopt budgetary amendments as necessary to cause compliance with state statute.
Part III. Findings and quesfioned costs for federal awards required to be reported in accordance with Office of Management and Budget Circular A-133:
The requirements of OMB Circular A-133 do not apply to the Clerk of Court.
37
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Summary Schedule of Prior Audit Findings Year Ended June 30. 2011
A. Internal Control -
2010-1 - Segregafion of Duties
CONDITION: Accounting and financial funclions are not adequately segregated.
RECOMMENDATION: Due to the size of the operation and the cost-benefit of additional personnel, it may nol be feasible to achieve complete segregation of duties.
CURRENT STATUS: See schedule of audit results and findings item 201 M.
2010-2-Applicafion of GAAP
CONDITION: Management and staff lack the training and expertise in the selecfion and applicafion of GAAP in the financial staiemeni preparation process.
RECOMMENDATION: The additional costs required to achieve the desired benefit may not be economically feasible.
CURRENT STATUS: This finding is no longer applicable.
B. Compliance-
There were no findings previously reported under ihis section.
C. OMB A-133-
This seclion was not applicable.
38
ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana
Correcfive Acfion Plan for Current Year Findings Year Ended June 30, 2011
2011-1 - Segregafion of Dufies
CONDITION: Accouniing and financial funcfions are not adequately segregated.
MANAGEMENT'S RESPONSE: Not Applicable
201 \~2 - Budget Variance
CONDITION: Budget variance in excess of 5% was incurred in the Easibank Expense Fund.
MANAGEMENT'S RESPONSE: We will more closely monitor budget to actual comparisons and adopt the necessary amendments to insure compliance with state statues.
39