Terrebonne Parish Clerk of Courtapp.lla.state.la.us/PublicReports.nsf/2F6B6AEF4D1713BE...TERREBONNE PARISH CLERK OF COURT Houma, Louisiana Annual Financial Report For the Year Ended

TERREBONNE PARISH CLERK OF COURTHouma, Louisiana

Annual Financial ReportFor the Year Ended June 30, 2007

Under provisions of state law, this report is a publicdocument- A copy of the report has been submitted tothe entity and other appropriate public officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of

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STAGNI & COMPANY, LLC

TERREBONNE PARISH CLERK OF COURTAnnual Financial Report

For the Year Ended June 30, 2007

TABLE OF CONTENTSPage

MANAGEMENT'S DISCUSSION & ANALYSIS 1

Financial Section:

INDEPENDENT AUDITOR'S REPORT 7Government Wide F/nancia/ Statements:

Statement of Net Assets 9Statement of Activities 10

Fund Financial Statements:Balance Sheet - Governmental Fund 11Reconciliation of the Balance Sheet - Governmental Fund

to the Statement of Net Assets 12Statement of Revenues, Expenditures and Changes in

Fund Balance - Governmental Fund - General Fund 13Reconciliation of the Statement of Revenues, Expenditures,

and Changes In Fund Balance - Governmental Fund to theStatement of Activities 14

Combining Statement of Fiduciary Net Assets 15Notes to the Financial Statements 16

Required Supplemental Information):

Budgetary Comparison Schedule- General Fund 27

Reports Required by Government Auditing Standards:

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVERFINANCIAL REPORTING BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTSPERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 28

Schedule of Findings and Questioned Costs 30

TERREBONNE PARISH CLERK OF COURTMANAGEMENTS DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED JUNE 30, 2007

Our discussion and analysis of the Terrebonne Parish Clerk of Court's financialperformance provides an overview of the financial activities as of and for the fiscal yearend. Please read it in conjunction with the basic financial statements and theaccompanying notes to the financial statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

This annual report consists of a series of financial statements. The Government-WideFinancial Statements (Statement of Net Assets and the Statement of Activities) provideinformation about the governmental activities as a whole and present a longer-term viewof the finances. Fund Financial Statements (Balance Sheet. Statement of Revenues,Expenditures and Changes in Fund Balance, and Combining Statement of Fiduciary NetAssets) tell how these services were financed in the short term as well as what remainsfor future spending. Fund Financial Statements also report the operations in more detailthan the Government-Wide Statements by providing information about the mostsignificant funds.

Our auditor has provided assurance in his independent auditor's report that the basicfinancial statements are fairly stated. The auditor, regarding the RequiredSupplemental Information is providing varying degrees of assurance. A user of thisreport should read the Independent Auditor's Report carefully to ascertain the level ofassurance being provided for each of the other parts in the Annual Financial Report,

Government-Wide Financial Statements

One of the most important questions asked about finances is, "Is the Terrebonne ParishClerk of Court as a whole better off or worse off as a result of the year's activities?" TheStatement of Net Assets and the Statement of Activities report information on the Clerkof Court as a whole and about its activities in a way that helps answer this question.These statements include all assets and liabilities using the accrual basis of accounting,which is similar to the accounting used by most private-sector companies. All of thecurrent year's revenues and expenses are taken into account regardless of when cashis received or paid.

These two statements report the net assets and changes in them. You can think of netassets—the difference between assets and liabilities—as one way to measure thefinancial health, or financial position. Over time, increases or decreases in net assetsare one indicator of whether its financial health is improving or deteriorating.

TERREBONNE PARISH CLERK OF COURTMANAGEMENT'S DISCUSSION AND ANALYSIS


Fund Financial Statements

The Fund Financial Statements provide detailed information about the most significantfunds—not the Clerk of Court as a whole. Some funds are required to be established byState taws.

The Clerk of Court uses only the governmental type of fund with the followingaccounting approach. Most of the basic services are reported in governmental funds,which focus on how money flows into and out of those funds and the balances left atyear-end that are available for spending. These funds are reported using an accountingmethod called modified accrual accounting, which measures cash and all other financialassets that can readily be converted to cash. The governmental fund statementsprovide a detailed short-term view of the general government operations and the basicservices it provides. Governmental fund information helps you determine whether thereare more or fewer financial resources that can be spent in the near future to finance theClerk of Court's programs. We describe tfie relationship (or differences) betweengovernmental activities (reported in the Statement of Net Assets and the Statement ofActivities) and governmental funds in reconciliations immediately following the fundfinancial statements.

The Clerk of Court is the trustee, or fiduciary, for funds reserved by the Court andAdvanced Costs collected for court expenses. All of these fiduciary activities arereported in a separate Combined Statement of Fiduciary Net Assets. We exclude theseactivities from the other financial statements because the Clerk of Court cannot usethese assets to finance its operations. The Clerk of Court is responsible for ensuringthat the assets reported in these funds are used for their intended purposes.

FINANCIAL HIGHLIGHTS

Our financial statements provide these insights into the results of this year's operations:• Net assets of our governmental activities decreased by $174,436 or

approximately 13%.• During the year, the Clerk had expenses of $4,077,602 that were $318,989

more than the $3,758,613 generated in fees and other revenues forgovernmental programs.

• The governmental funds reported total ending fund balance of $861,740, ofwhich $622,999 was classified as unreserved. This compares to the prior yearending fund balance of $988,989 showing a decrease of $288,382 or about29%.



The Statement of Net Assets and the Statement of Activities report only one type ofactivity - governmental activities. All of the basic governmental services are reported asthis type. Fines and fees charged to the public finance most of these activities.

TERREBONNE PARISH CLERK OF COURT AS A WHOLE

Our analysis below focuses on the net assets of the governmental-type activities.Condensed Statement of Net Assets

TotalDollar Percent

FY 2007 FY 2006 Change Change

Current and Other AssetsCapital Assets

Total Assets

Current LiabilitiesTotal Liabilities

Invested in Capital AssetsUnrestricted

Total Net Assets

$ 861,740420,598

1,282,338

161,133

$1,006,633306,652

1,313,285

17,644

$(144,893)113,946(30,947)

143,489

-14.4%37.2%-2.4%

813%161,133

420,598700.607

17,644

306,652988,989

143,489

113,946(288.382)

$1,121,205 $1.295,641 $(174,436)

813%

37.2%-29.2%

-15.6%

The Clerk of Court's net assets decreased by $174,436 as a result of this year'soperations. The overall financial position declined during the fiscal year. Unrestrictednet assets—the part of net assets that can be used to finance day-to-day operationswithout constraints established by debt covenants, enabling legislation, or other legalrequirements—absorbed most of the decrease. The balance in net assets representsthe accumulated results of all past years' operations.



Our analysis below focuses on the changes in net assets of the governmental-typeactivities.

Condensed Statement of ActivitiesTotal

Dollar PercentFY 2007 FY 2006 Change Change

Total program expensesTotal program revenuesNet program income

General revenuesChange in Net Assets

Net Assets:Beginning of the yearEnd of the year

$(4,077,602)3,758,613(318,989)

144,553(174,436)

$(3,642,503)3,342,372(300.131)

117,846(182,285)

$ 435,099416,241

18,858

26,707(7,849)

11.5%12.5%6.3%

22.7%-4.3%

1.295.641$ 1,121.205

1,477.926 (182,285)

$ 1,295.641 $(174,436)-12.3%-13.5%

The Clerk of Court's total revenues for the year in governmental activities were$3,903,166 ($3,758,613 in program revenues and $144,553 in general revenues -interest earned). The total cost of all programs and services was $4,077,602 with nonew programs added this year.

FINANCIAL ANALYSIS OF THE CLERK OF COURT'S FUNDS

As we noted earlier, the Clerk of Court uses funds to help it control and manage moneyfor particular purposes. Looking at funds helps you consider whether the Clerk of Courtis being accountable for the resources provided to it but may also give you more insightinto the overall financial health.

As the Clerk of Court completed the year, its governmental fund reported a fundbalance of $700,607. This reflects a decrease of $288,382 from last year. Thisdecrease is primarily the result of the events and programs described within theanalysis of the governmental activities.



GENERAL FUND BUDGETARY HIGHLIGHTS

The original budget for the General Fund was not revised during the fiscal year.

CAPITAL ASSETS

Capital assets included furniture and fixtures, office equipment, automobiles and leasedequipment recorded at historical cost of $1,602,524. Accumulated depreciation of$1,181,926 recorded from the cost of assets resulted in an ending book balance ofassets of $420,598.

This year there were $198,251 of office furniture and equipment (mostly computers,printers and software) of additions, and no deletions recorded to capital assets.Depreciation expense of $84f305 was recorded for the year. More detailed informationabout the capital assets is presented in Note 5 to the financial statements.

LONG TERM OBLIGATIONS

The Clerk of Court had no long-term obligations at June 30, 2007.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES

The Clerk of Court considered many factors when budgeting for the next year, includingincreased or decreased rates and fees to be charged. Another one of those factors isthe new laws and regulations.

Condensed Summary of BudgetedFinances

FY 2008

Anticipated revenues $ 4,260,900

Expenditures:Current 3,944,946

Capital outlay 180.000Anticipated expenditures 4,124,946

Excess of revenues 135,954

Fund Balance:

Beginning of the year 913,256

End of the year $1.049,210

TERREBONNE PARISH CLERK OF COURTMANAGEMENT'S DISCUSSION AND ANALYSIS


The following assumptions are used to compile the 2007-2008 budget:• The salary of the Clerk of Court is fixed by Statute and will remain at $98,000.• There will be a salary increase of 7% for certification.• $432,000 is included to cover the contribution by the office to the Employee

Retirement Fund (11.5% of the employer portion and 8.25% of the employeeportion).

• $75,000 is budgeted for the purchase of new uniforms for employees.• $130,000 is budgeted for the estimated cost of the providing for upgrade to

windows based applications for Civil and Suits and Jury departments.

CONTACTING FINANCIAL MANAGEMENT

This financial report is designed to provide a general overview of our finances and toshow the accountability for the money received. If you have questions about this reportor need additional financial information, contact:

Honorable I. Robert BoudreauxTerrebonne Parish Clerk of Court

P.O. Box1569Houma, LA 70361

985-868-5660

Financial Section

INDEPENDENT AUDITOR'S REPORT

Honorable I. Robert BoudreauxTerrebonne Parish Clerk of CourtHouma, Louisiana

We have audited the accompanying financial statements of the governmental activities andeach major fund of the Terrebonne Parish Clerk of Court, a component unit of theTerrebonne Parish Consolidated Government, as of and for the year ended June 30, 2007,which collectively comprise the basic financial statements as listed in the table of contents.These financial statements are the responsibility of the Terrebonne Parish Clerk of Court'smanagement Our responsibility is to express an opinion on these financial statementsbased on our audit.

We conducted our audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement Anaudit includes examining, on a test basis, evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principlesused and significant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides a reasonable basis forour opinion.

In our opinion, the financial statements referred to above present fairly, in all materialrespects, the respective financial position of the governmental activities and each majorfund of the Terrebonne Parish Clerk of Court as of June 30, 2007, and the respectivechanges in financial position for the year then ended in conformity with accountingprinciples generally accepted in the United States of America.

aO7 LAFAVE AVENUE * THIBOOAUX, LA 7O3Of (985) 447-7326

I 39 B JAMES COMEAUX RD. #8 I 2 • LAFAYETTE, LA 7O5O8 (337) 4O8-QO31

RRMWIDE FAX (965) -446-3O32

EMAIL: [email protected]

MEMBERS: A1CPA • LCPA

Terrebonne Parish Clerk of CourtHouma, LouisianaPage 2

In accordance wrth Government Auditing Standards, we have also issued a report datedDecember 12,2007, on our consideration of the Terrebonne Parish Clerk of Court's internalcontrol over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements and other matters. That report is anintegral part of an audit performed in accordance with Government Auditing Standards andshould be read in conjunction with this report in considering the results of our audit.

The Management's Discussion and Analysis and the Required SupplementaryInformation, as listed in the foregoing table of contents, are not a required part of thebasic financial statements, but are supplementary information required by accountingprinciples generally accepted in the United States of America. The Management'sDiscussion and Analysis and the Required Supplementary Information is theresponsibility of the management of the Terrebonne Parish Clerk of Court. We haveapplied certain limited procedures, which consisted principally of inquiries of managementregarding the methods of measurement and presentation of the supplementary information.However, we did not audit the information and express no opinion on it.

Thibodaux, LADecember 12,2007


TERREBONNE PARISH CLERK OF COURTStatement of Net Assets

June 30, 2007General

ASSETS Fund

See notes to financial statements.9

Cash and cash equivalents $ 181,797Investments 370,000Receivables 116,225Due from Agency Funds 116,110Prepaid Insurance 77,608Capital assets, net of accumulated depreciation 420,598

Total assets 1,282,338

LIABILITIESCurrent:Accounts payable and accrued expenses 161,133

Total liabilities 161,133

NET ASSETSInvested in Capital Assets 420,598Unrestricted 700,607

Total net assets $ 1,121,205

TERREBONNE PARISH CLERK OF COURTStatement of Activities


EXPENSESSalaries and benefitsOffice supplies and expenseInsuranceTravel and Clerk's ExpenseOtherDepreciation

Total program expenses

PROGRAM REVENUESCharges for services

Total program revenues

Net Program (Income) Expense

GENERAL REVENUESInterest earned

Total general revenues

Change in Net Assets

NET ASSETSBeginning of yearEnd of year

2,481,848444,134942,448

7,350117,51784,305

4,077,602

3,758,6133,758,613

(318,989)

144.553144,553

(174,436)

1,295,641$ 1,121.205


TERREBONNE PARISH CLERK OF COURTBalance Sheet - Governmental Fund

June 30, 2007

ASSETS General Fund

Cash and cash equivalents $ 181,797Investments 370,000Receivables 116,225Due from Agency Funds 116,110Prepaid Expenses 77,608

Total assets $ 861.740

LIABILITIES AND FUND BALANCES

Accounts payable and accrued expenses $ 161,133


Total liabilities 161,133

Fund Balance:Reserved for Prepaid Expenditures 77,608Unreserved - undesignated 622,999

Total fund balance 700,607

Total liabilities and fund balances $ 861,740

TERREBONNE PARISH CLERK OF COURTReconciliation of the Balance Sheet- Governmental Fund

to the Statement of Net AssetsJune 30, 2007

Total fund balance - governmental fund (Fund Financial Statement) $ 700,607

Amounts reported for governmental activities In the statement of net assetsare different because:

Capital assets used in governmental activities are not financial resourcesand therefore are not reported in governmental funds.

Cost $1,602,524Accumulated Depreciation (1,181,926)

420,598

Total net assets of governmental activities (Government-Wide Financial Statements) $1,121,205

See notes to the financial statements.12

TERREBONNE PARISH CLERK OF COURTStatement of Revenues, Expenditures and Changes in Fund Balance

Governmental Fund - General FundFor the Year Ended June 30, 2007

RevenuesSuits and successions transferred

from the Advance Deposit FundRecording feesFees in criminal casesCertified copiesInterest earnedMortgage certificatesCourt attendanceCancellationsMarriage licensesNotarial feesOther

Total revenues

ExpendituresCurrent - Judiciary:Salaries and benefitsOffice supplies and expenseInsuranceTravel and Clerk's ExpenseOther

Total current expendituresCapital outlay

Total expenditures

Excess (deficiency) of revenuesover expenditures

Fund BalancesBeginning of yearEnd of year

1,181,5171,466,023

221,326523,481144,55337,96820,67661,16211,96247,086

187,4123,903.166

2,481,848444,134942,448

7,350117,517

3,993,297198,251

4,191,548

(288,382)

988.989$ 700.607


TERREBONNE PARISH CLERK OF COURTReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance-

Governmental Fund to the Statement of ActivitiesFor the Year Ended June 30, 2007

Net change in fund balance - governmental fund (Fund Financial Statements) $ (288,382)

Amounts reported for governmental activities in the statement of activitiesare different because:

Governmental funds report capital outlays as expenditures in the individual fund.Governmental activities report depreciation expense to allocate the cost of thosecapital assets over the estimated useful lives of the asset.

Asset purchases capitalized $ 198,251Depreciation expense (84,305)

113,946

Change in net assets of governmental activities $ (174,436)(Government -Wide Financial Statements)


TERREBONNE PARISH CLERK OF COURTCombining Statement of Fiduciary Net Assets

June 30, 2007

Advance Registry ofDeposit the CourtFund Fund

ASSETS

Cash and cash equivalents $ 880,851Investments 2,651,980Accounts receivable 22,594

Total assets

$ 2,971,888

Total

$ 3,852,7392,651,980

22,594

$ 3,555,425 $ 2,971.888 $ 6,527.313

LIABILITIES

Due to governmental funds $ 101,554Due to others 3,453,871

Total liabilities

$ 14,5562,957,332

$ 116,1106,411,203

$ 3,555,425 $ 2,971,888 $ 6,527,313

See notes to the financial statements.15

TERREBONNE PARISH CLERK OF COURTNotes to Financial Statements


INTRODUCTION

The Clerk of Court (LSA-RS 13:781) serves as the parish recorder of conveyances,mortgages, notary public, et cetera. As provided by Article 5, Section 28 of the LouisianaConstitution of 1974, The Clerk of Court serves a four-year term of office. The current termexpires June 30, 2008. The Clerk may appoint deputies with duties and powers providedby law, with the approval of the district judge.

The financial statements of the Terrebonne Parish Clerk of Court have been preparedin conformity with generally accepted accounting principles (GAAP) as applied togovernment units. The Governmental Accounting Standards Board (GASB) is theaccepted standard-setting body for establishing governmental accounting and financialreporting principles. The accompanying basic financial statements have beenprepared in conformity with GASB Statement 34, Basic Financial Statements-andManagement's Discussion and Analysis—for State and Local Governments, issued inJune 1999. The more significant accounting policies established in GAAP and used isdiscussed below.

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

As the governing authority of the parish, the Terrebonne Parish ConsolidatedGovernment is the financial reporting entity for Terrebonne Parish. The ConsolidatedGovernment maintains and operates the parish courthouse in which the clerk of court'soffice is located and provides funds for equipment and furniture of the clerk of court'soffice. Because the clerk of court is fiscally dependent on the Terrebonne ParishConsolidated Government, the clerk of court was determined to be a component unit ofthe Terrebonne Parish Consolidated Government, the financial reporting entity.

The accompanying financial statements present information only on the fundsmaintained by the Clerk of Court and do not present information on the TerrebonneParish Consolidated Government, the general government services provided by thatgovernmental unit, or the other governmental units that comprise the financial reportingentity.

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Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

B. Basic Financial Statements

Government-Wide Financial Statements (GWFS)

The Clerk of Court's basic financial statements include both government-wide(reporting the entity as a whole) and fund financial statements (reporting the entity'smajor funds). Both the government-wide and fund financial statements categorizeprimary activities as the governmental type.

In the government-wide Statement of Net Assets, the governmental activities arepresented on a consolidated basis and are reported on a full accrual, economicresource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The Cleric of Court's net assets are reported in three parts—invested in capital assets, net of related debt; restricted net assets; and unrestricted netassets. The Cleric of Court first utilizes restricted resources to finance qualifyingactivities.

The government-wide Statement of Activities reports both the gross and net cost ofeach of the Clerk of Court's functions. General government revenues also support thefunctions. The Statement of Activities reduces gross expenses (including depreciation)by related program revenues, operating and capital grants. Program revenues must bedirectly associated with the function. Operating grants include operating-specific anddiscretionary (either operating or capital) grants while the capital grants column reflectscapital-specific grants, if any. The net costs by function are normally covered bygeneral revenue (interest income, etc).

This government-wide focus is more on the sustainability of the Clerk of Court as anentity and the change in its net assets resulting from the current year's activities.

Information contained in these statements reflects the economic resourcesmeasurement focus and the accrual basis of accounting. Revenues, expenses, gains,losses, assets and liabilities resulting from exchange or exchange-like transactions arerecognized when the exchange occurs (regardless of when cash is received ordisbursed). Revenues, expenses, gains, losses, assets and liabilities resulting fromnon-exchange transactions are recognized in accordance with the requirements ofGASB Statement No. 33, Accounting and Financial Reporting for Non-exchangeTransactions,

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B. Basic Financial Statements (Continued)

Fund Financial Statements (FFS)

The financial transactions of the Clerk of Court are reported in individual funds in thefund financial statements. Each fund is accounted for by providing a separate set ofself-balancing accounts that comprises its assets, liabilities, reserves, fund equity,revenues and expenditures/expenses. The various funds are reported by genericclassification within the financial statements.

Governmental Funds

Governmental funds account for all or most of the clerk's general activities. Thesefunds focus on the sources, uses, and balances of current financial resources.Expendable assets are assigned to the various governmental funds according to thepurposes for which they may be used. Current liabilities are assigned to the fund fromwhich they will be paid. The difference between a governmental fund's assets andliabilities is reported as fund balance. In general, fund balance represents theaccumulated expendable resources that may be used to finance future period programsor operations of the Clerk of Court. The following are the clerk's governmental funds:

General FundThe General Fund (Salary Fund), as provided by Louisiana Revised Statute13:781, is the principal fund of the Clerk of Court and accounts for theoperations of the clerk's office. The various fees and charges due to the clerk'soffice are accounted for in this fund. General operating expenditures are paidfrom this fund.

Fiduciary FundsFiduciary fund reporting focuses on net assets and changes in net assets. Theonly funds accounted for in this category by the clerk are agency funds. Theagency funds account for assets held by the clerk as an agent for litigants heldpending court action. These funds are custodial in nature (assets equalliabilities) and do not involve measurement of results of operations.Consequently, the agency funds have no measurement focus, but use themodified accrual basis of accounting. The Advance Deposit and Registry ofCourt - Agency Funds account for assets held as an agent for others.

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C. Basis of Accounting

Basis of accounting refers to the point at which revenues or expenditures/expenses arerecognized in the accounts and reported in the financial statements, tt relates to the timingof the measurements made regardless of the measurement focus applied.

Accrual: The governmental-type activities in the government-wide financialstatements and fiduciary fund financial statements are presented on the accrualbasis of accounting. Revenues are recognized when earned and expenses arerecognized when incurred.

Modified Accrual: The governmental fund financial statements are presented onthe modified accrual basis of accounting. Under the modified accrual basis ofaccounting, revenues are recorded when susceptible to accrual; i.e., bothmeasurable and available. "Available" means collectible within the current period orwithin 60 days after year-end. Expenditures are generally recognized under themodified accrual basis of accounting when the related liability is incurred. Theexception to this general rule is that principal and interest on general obligation long-term debt, if any, is recognized when due.

D. Cash and Cash Equivalents

Cash includes amounts in demand deposits, interest bearing demand deposits, moneymarket accounts and cash on hand. Cash equivalents include time deposits maturingwithin 90 days. Under state law, the Clerk of Court may deposit funds in demanddeposits, interest bearing demand deposits, money market accounts, or certificates ofdeposit with state banks organized under Louisiana law and national banks having theirprincipal offices in Louisiana.

E. Investments

Investments are limited by Louisiana Revised Statute 25 33:2955 and the Clerk ofCourt's investment policy. If the original maturities of investments exceed 90 days, theyare classified as investments; however, if the original maturities of investments are 90days or less, they are classified as cash and cash equivalents. The Clerk'sinvestments consist of time deposits with maturities between 91 and 270 days.

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F. Capital Assets

Capital assets purchased or acquired with a cost of $500 or more are reported athistorical cost or estimated historical cost. Contributed assets are reported at fairmarket value as of the date received. Additions, improvements and other capital outlaysthat significantly extend the useful life of an asset are capitalized. Other cost incurredfor repairs and maintenance are expensed as incurred. Depreciation on all assets isprovided on the straight-line basis over the following estimated useful lives:

Description EstimatedLives

Office Equipment 5 yearsFurniture & Fixtures 10 yearsAutomobiles 5 yearsLeased Equipment 5 years

G. Interfund Activities

The Clerk of Court transfers interest earned on the investments of the Advance DepositFund to the Salary Fund to be utilized by the Salary Fund in its operations. In thosecases where the physical transfer of assets has not taken place as of year-end, orwhere repayment is expected, these amounts are accounted for through the variousdue to and due from accounts.

H. Clerk's Fees Transferred from Advance Deposit Agency Fund

These fees represent revenue to the Clerk of Court earned from everyday operationssuch as filing suits, preparing notices, etc. for litigants. These fees are collected by atransfer of litigant's money deposited in the Advance Deposit Fund to the Salary Fund.

I. Budgetary Practices1. Prior to the beginning of each fiscal year, the Clerk of Court prepares and

approves a formal budget for the General Fund based upon estimatedrevenues and proposed expenditures for the coming year using the modifiedaccrual basis of accounting.

2. The proposed budget is published in the official journal of the Parish ofTerrebonne and is presented to the public for review and inspection, afterwhich it is finalized and adopted by the elected Clerk of Court of TerrebonneParish.

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I. Budgetary Practices (continued)

3. A certified copy of the budget is then filed with the Chief Executive orAdministrative Officer of the Tenrebonne Parish Consolidated Government

4. Any amendments to the budget are published in the Clerk of Court'sofficial journal.

5. Budgetary integration is employed as a management tool.6. Encumbrances accounting, under which purchase orders, contracts, and

other commitments for the expenditure of monies recorded in order toreserve that portion of the applicable appropriation, is not employed bythe Clerk of Court.

J. Compensated Absences

The employees of the Clerk of Court are allowed a fixed number of days for vacationand sick leave each year. This policy does not provide for the accumulation or vestingof leave. Accordingly, the Clerk of Court has recorded no accrual for employee leavebenefits.

K. Restricted Net Assets

For government-wide statement of net assets, net assets are reported as restrictedwhen constraints placed on net asset use are either:

1. externally imposed by creditors (such as debt covenants), grantors,contributors, or laws or regulations of other governments; and

2. imposed by law through constitutional provisions or enabling legislation.

L. Fund Equity Reservations

In the fund financial statements, governmental funds report reservations of fundbalance for amounts that are not available for appropriation or are legally restricted byoutside parties for use for a specific purpose. Any designations of fund balancerepresent tentative management plans that are subject to change.

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M. Use of Estimates

The preparation of financial statements in conformity with generally acceptedaccounting principles requires management to make estimates and assumptions thataffect the reported amounts of assets and liabilities and disclosure of assets andliabilities at the date of the financial statements and the reported amounts of revenuesand expenses during the reporting period. Actual results could differ from thoseestimates.

N. Due to Terrebonne Parish Consolidated Government

R.S. 13:785 requires that every four years (at the close of the term of office) the clerk ofcourt must pay the parish treasurer the portion of the General Fund's fund balance thatexceeds one-half of the revenues of the clerk's last year of his term of office, whichamount shall be limited to no more than that which was received by the clerk inaccordance with R.S. 1784 (A) during said term in office. At June 30, 2007, there wasno amount due the parish treasurer as this was not the last year of the clerk's four-yearterm of office, and no determination of the amount that will be due, if any, can be madeat this time.

Note 2 DEPOSITS AND INVESTMENTS

State law requires deposits (cash and certificates of deposit) of all political subdivisions tobe fully collateralized at all times. Acceptable collateralization includes FDIG insurance andsecurities purchased and pledged to the political subdivision. Obligations of the UnitedStates, the State of Louisiana and certain political subdivisions are allowed as security fordeposits. Obligations furnished as security must be held by the political subdivision, or withan unaffifiated bank or with a trust company for the account of the political subdivision.

The Clerk of Court has balances of deposits at year-end as follows:

Cash and cash equivalent

Certificates of depositTotals

Balances

Reported$4,034,536

3,021,980

$7,056,516

Bar*

$4,490,529

3,021,980

$7,512,509

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Note 2



DEPOSITS (CONTINUED)

Custodial credit risk is the risk that in the event of a bank failure, the Clerk's deposits maynot be returned to it. The Clerk does not have a written policy for custodial credit risk. Asof year-end $6,712,509 of the Clerk's bank balance of $7,512,509 was exposed tocustodial credit risk. These deposits were uninsured and collateralized with securities heldby the pledging financial institution's trust department or agent, but not in the Clerk's name.

At year-end, cash and certificates of deposit in excess of the FDIC insurance werecollateralized by securities held by unaffiliated banks for the account of the depositors. TheGovernmental Accounting Standards Board (GASB), which promulgates the standards foraccounting and financial reporting for state and local governments, considers thesesecurities subject to custodial credit risk. Even though the pledged securities areconsidered uncollateralized (Category 3) under the provisions of GASB Statement 3, R.S.39:1229 imposes a statutory requirement on the custodial bank to advertise and sell thepledged securities within 10 days of being notified by the clerk of court that the fiscal agenthas failed to pay deposited funds upon demand.

NoteS RECEIVABLES

Receivable balances are as follows:

Class of Receivables

AccountsInterestRefunds dueFees in criminalcasesSupport enforcement

Totals

Salary Fund

$ 54,2124,922

83510,867

45,389

$116,225

Agency FundsAdvanced

Cost

$ 22,594

$ 22,594

23



Note 4 INTERFUND ASSETS/LIABILITIES

The balances receivable from/payable to General Fund, Advance Deposit Fund, andRegistry of the Court are as follows:

General Fund

Advance Deposit

Registry of the Court

Totals

Receivables$116,110

$116,110

Payabies

$101,554

14,556

$116,110

Noted CAPITAL ASSETS

Capital assets and depreciation activity for the year follows:

$ 421,899 $ 828,742 $ 17,009 $ 136,624 $ 1,404,273198,251 - - 198,251

136,624 1,602,524421,899 1,026,993

256,27521,544

1,097,62184,305

687,71462,761

136,624 1,181,926

$ 144,079 $ 276,519 $ $ 420,598

$ 21,544 $ 62,761 $ $ 84,305

24



Note 6 POST-RETIREMENT BENEFITS

The Clerk of Court provides certain continuing health care and life insurance benefitsfor retired employees. Substantially all of the Clerk's employees become eligible forthese benefits if they reach normal retirement age while working for the Clerk of Court.These benefits for retirees and similar benefits for active employees are providedthrough an insurance company whose monthly premiums are paid entirely by the Clerkof Court. For the year ending June 30, 2007, the cost of the benefits for 9 retireestotaled $50,075.

Note 7 EMPLOYEE RETIREMENT SYSTEM

Substantially all employees of the Clerk of Court are members of the Louisiana Clerksof Court Retirement and Relief fund (System), a multiple-employer (cost-sharing),public employee retirement system (PERS), controlled and administered by a separateboard of trustees. Contributions of participating clerks are pooled within the System tofund accrued benefits, with contribution rates approved by the Louisiana Legislature,

All regular employees earning a minimum of $ 500 per month and who are under theage of 60 at the time of original employment are eligible to participate in the system.The System also provides death and disability benefits. Benefits are established bystate statute.

The System issues an annual publicly available financial report that includes financialstatements and required supplementary information for the System. That report may beobtained by writing to the Louisiana Clerks of Court Retirement and Relief Fund, 11745Bricksome Avenue, Suite B1, Baton Rouge, Louisiana, 70816, or by calling (225) 293-1162.

Funding Policy, Plan members are required by state statue to contribute 8.25percent of their annual covered salary and the Clerk of Court is required tocontribute at an actuarially determined rate. The actuarially determined rate was8 percent of annual covered payroll for the year ending June 30, 2007.Contributions to the System also include one-fourth of one percent (one-half ofone percent for Orleans Parish) of the taxes shown to be collectible by the taxrolls of each parish. The contribution requirements of plan members and theClerk of Court are established as amended by state statute. As provided byLouisiana Revised Statute 11:103, the employer contributions are determined byactuarial valuation and are subject to change each year based on the results tofund accrued benefits, with contribution rates approved by the LouisianaLegislature.

25



Note 7 EMPLOYEE RETIREMENT SYSTEM (CONTINUED)

Effective July 1, 1999, the Louisiana Senate passed Bill #556 allowing the individualClerk's of Court to elect to pay both the employee and employer contributions into thisretirement system. The Terrebonne Parish Clerk of Court has elected to do so for theyear ending June 30, 2005, 2006, and 2007.

The Clerk of Court's contribution for the years ending June 30, 2005, 2006 and 2007were $455,075 (19.75% of covered payroll), $449,608 (19.75% of covered payroll), and$469,460 (19-75% of covered payroll) respectively, which were equal to the requiredcontributions for each year.

Note 8 LITIGATION

There is no litigation pending against the Clerk of Court's office that is required to bedisclosed in accordance with Statement of Financial Accounting Standards No. 5.

Note 9 RISK MANAGEMENT

GENERAL LIABILITY INSURANCE

The Clerk of Court is exposed to various risks of loss related to tort, theft of, damage to,and destruction of assets; errors and omissions; injuries to employees; and naturaldisasters. The Clerk of Court purchases commercial insurance policies for any and altclaims relating to the above types of risks.

The Clerk's payment of the deductible is the only liability associated with these insurancepolicies. There has been no significant reduction in insurance coverage in the prior year.The amount of settlements has not exceeded insurance coverage for each of the past threefiscal years.

HEALTH INSURANCE

The Clerk of Court provides health and life insurance to employees through the LouisianaClerk of Court Association. Under this insurance program, the Clerk pays initial premiumsbased on the level of the employee's participation and has no further liabilities on anyclaims.

26

Required Supplemental Information

TERREBONNE PARISH CLERK OF COURTBudgetary Comparison Schedule - Genera/ Fund

For the Year Ended June 30, 2007Variance

RevenuesSuits and successions transferred

from the Advance Deposit FundRecording feesFees in criminal casesCertified copiesInterest earnedMortgage certificatesCourt attendanceCancellationsMarriage licensesNotarial feesOther

Total revenues

ExpendituresCurrent-Judiciary:Salaries and benefitsOffice supplies and expenseInsuranceTravel and Clerk's ExpenseOther

Total current expendituresCapital outlay

Total expendituresExcess (deficiency) of revenues

over expenditures

Budgeted AmountsOriginal

$ 1,410,0001,320,000

252,000480,000168,00042,00021,60072,00012,00024,000

174,600

Final

$ 1,410,0001,320,000

252,000480,000168,00042,00021,60072,00012,00024,000

174,600

Actual

$ 1,181,5171.466,023

221,326523,481144,55337,96820,67661,16211,96247,086

187,412

Favorable(Unfavorable)

$ (228,483)146,023(30,674)43,481(23,447)(4,032)

(924)(10,838)

(38)23,08612,812

3,976,200

2,525,016334,500834,500

6,900131,020

3,831,936220,000

4,051,936

(75,736)

3,976,200

4,051,936

(75,736)

3,903,166

4,191,548

(288,382)

(73,034)

2,525,016334,500834,500

6,900131,020

3,831,936220,000

2,481,848444,134942,448

7,350117,517

3,993,297198,251

43,168(109,634)(107,948)

(450)13,503

(161,361)21,749

(139.612)

(212,646)

Fund BalancesBeginning of yearEnd of year

988.992 988.992 988.989$ 913,256 $ 913.256 $ 700.607 $ (212.649)

27

Reports Required byGovernment Auditing Standards

STAGNI & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTTS & CONSULTANTS

REPORT ON INTERNAL CONTROL OVERFINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON

AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITHGOVERNMENT AUDITING STANDARDS

Honorable I. Robert BoudreauxTerrebonne Parish Clerk of CourtHouma, Louisiana

We have audited the financial statements of the governmental activities and each majorfund of the Terrebonne Parish Clerk of Court, a component unit of the Terrebonne ParishConsolidated Government as of and for the year ended June 30, 2007, which collectivelycomprise the basic financial statements and have issued our report thereon datedDecember 12, 2007. We conducted our audit in accordance with auditing standardsgenerally accepted in the United States of America and the standards applicable tofinancial audits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States.

Internal Control over Financial Reporting

In planning and performing our audit, we considered the Terrebonne Parish Clerk of Court'sinternal control over financial reporting as a basis for designing our auditing procedures forthe purpose of expressing our opinions on the financial statements, but not for the purposeof expressing an opinion on the effectiveness of the internal control over financial reporting.Accordingly, we do not express an opinion on the effectiveness of the internal control overfinancial reporting.

A control deficiency exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, toprevent or detect misstatements on a timely basis. A significant deficiency is a controldeficiency, or combination of control deficiencies, that adversely affects the ability to initiate,authorize, record, process, or report financial data reliably in accordance with generallyaccepted accounting principles such that there is more than a remote likelihood that amisstatement of the financial statements that is mope than inconsequential will not beprevented or detected by the internal control.

2O7 LAFAYE AVENUE • THIBODAUX, LA 7Q3O1 <985) 447-7226 FIRMWIDE FAX (965) 446-3O32

! 39 B JAMES COMEAUX RD. #8 I Z * LAFAYETTE, LA 7O5OS (337) 4Q8-OO31 EMAIL: [email protected]

MEMBERS: AICPA • LCPA

Terrebonne Parish Clerk of CourtHouma, LouisianaPage 2

A material weakness is a significant deficiency, or combination of significant deficiencies,that results in more than a remote likelihood that a material misstatement of the financialstatements will not be prevented or detected by the internal control.

Our consideration of internal control over financial reporting was for the limited purposedescribed in the first paragraph of this section and would not necessarily identify alldeficiencies in internal control that might be significant deficiencies or material weaknesses.We did not identify any deficiencies in internal control over financial reporting that weconsider to be material weaknesses, as defined above.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Terrebonne Parish Clerk ofCourt's financial statements are free of material misstatement, we performed tests of itscompliance with certain provisions of laws, regulations, contracts and grant agreements,noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of our audit and, accordingly, we do not express such anopinion. The results of our tests disclosed no instances of noncompliance that are requiredto be reported under Government Auditing Standards.

This report is intended solely for the information and use of management and theLegislative Auditor and is not intended to be and should not be used by anyone other thanthese specified parties. Under Louisiana Revised Statute 24:513, this report is distributedby the Legislative Auditor as a public document.

Thibodaux, LouisianaDecember 12,2007

29


TERREBONNE PARISH CLERK OF COURTSCHEDULE OF FINDINGS AND QUESTIONED COSTS


We have audited the financial statements of the governmental activities and each majorfund of the Terrebonne Parish Clerk of Court, a component unit of the TerrebonneParish Consolidated Government as of and for the year ended June 30, 2007, whichcollectively comprise the basic financial statements and have issued our report thereondated December 12, 2007. We conducted our audit in accordance with auditingstandards generally accepted in the United States of America and the standardsapplicable to financial audits contained In Government Auditing Standards, issued bythe Comptroller General of the United States.

Our audit of the financial statements resulted in an unqualified opinion.Section I - Summary of Auditor's Reports

a. Report on Internal Control and Compliance Material to the Financial Statements

Internal ControlMaterial Weaknesses NoSignificant Deficiencies No

ComplianceCompliance Material to Financial Statements No

b. Federal Awards N/A - NO FEDERAL AWARDS RECEIVED

Internal ControlMaterial Weaknesses N/ASignificant Deficiencies N/A

Type of Opinion On Compliance Unqualified ^Qualified DFor Major Programs Disclaimer DAdverse DAre their findings required to be reported in accordance with Circular A-133, Section.510(a)? D Yes D Noc. Identification of Major Programs N/A - WO FEDERAL AWARDS RECEIVED

CFDA Number (s) Name of Federal Program (or Cluster)

Dollar threshold used to distinguish between Type A and Type B Programs:$_Is the auditee a low-risk' auditee, as defined by OMB Circular A-133? D Yes Q No

Section II - Financial Statement Findings

NONESection III - Federal Award Findings and Questioned Costs

N/A - NO FEDERAL AWARDS RECEIVED

30


Documents

Terrebonne Parish Clerk of Courtapp.lla.state.la.us/PublicReports.nsf/2F6B6AEF4D1713BE...TERREBONNE PARISH CLERK OF COURT Houma, Louisiana Annual Financial Report For the Year Ended