Royce T. Scimemi, CPA, APAC Oberlin, LA 70655

Transcription

1 Financial Report For the Year Ended December 31,2013 Royce T. Scimemi, CPA, APAC Oberlin, LA 70655

2 Ward Marshal, City Court of Oakdale & Ward 5 of Allen Parish Financial Report for Year Ended December 31,2013 TABLE OF CONTENTS Page No. Accountants' Compilation Report 1 Basic Financial Statements: Balance Sheet - Governmental Funds 4 Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds 5 Required Supplementary Information General Fund: Budgetary Comparison Schedule 7 Schedule of Findings and Responses 8-9 Summary of Prior Year Findings 10

3 ROYCE T. SCIMEMI, CPA, APAC CERTIFIED PUBLIC ACCOUNTANT Member American Institute of Certified Public Accountants P.O. Box 210 Oakdaie,LA Tele (337) , Fax (337) ACCOUNTANTS' COMPILATION REPORT Member Society of Louisiana Certified Public Accountants Honorable Joseph Lockett, Sr. Ward Marshal, City Court of Oakdale & Ward 5 of Allen Parish October 18,2016 Management is responsible for the accompanying financial statements of the governmental activities and the only major fund of the Ward Marshal, City Court of Oakdale & Ward 5 of Allen Parish (the Marshal), a component unit of the City of, as of and for the year ended December 31, 2013, which collectively comprise the Marshal's basic financial statements, as listed in the table of contents, in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the fmancial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on these fmancial statements. Management has elected not to implement the financial reporting requirements of GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments. The effects of this departure fi-om accounting principles generally accepted in the United States of America have not been determined. Management has elected to omit substantially all of the disclosures required by accounting principles generally accepted in the United States of America. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the Marshal's financial position and results of operations. Accordingly, the financial statements are not designed for those who are not informed about such matters. Supplementary Information Accounting principles generally accepted in the United States of America require that the general fund budgetary comparison schedule on page 7 be presented to supplement the basic fmancial statements. Such information, although not a part of the basic fmancial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic fmancial statements in an appropriate operational, economic, or historical context. This information is the representation of management. This information was subject to our compilation engagement, however, we have not audited or reviewed the required supplementary information and, accordingly, do not express an opinion, a conclusion, nor provide any form of assurance on such information. We are not independent with respect to the Marshal. Royce T. Scimemi, CPA, APAC -1-

4 BASIC FINANCIAL STATEMENTS -2-

5 MAJOR FUND DESCRIPTIONS General Fund To account for resources traditionally associated with governments that are not required to be accounted for in another fund. -3-

6 BALANCE SHEET - GOVERNMENTAL FUNDS December 31,2013 ASSETS Cash Receivables Intergovernmental Total current assets TOTAL ASSETS LIABILITIES Bank overdraft Accoimts payable Accrued liabilities Total cmrent liabilities TOTAL LIABILITIES General Fund $ ,777 $ , , FUND EQUITY Fund Balance Unassigned TOTAL FUND BALANCE TOTAL LIABILITIES AND FUND EQUITY ( ( See Accountants' Compilation Report. -4-

7 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS Year Ended December 31,2013 REVENUES Marshal fees Fees from civil suits Intergovemmental TOTAL REVENUES General Fund $ 26,378 62, ,323 EXPENDITURES Current: Advertising 52 Automobile 4,262 Bank fees 1,177 Contract labor 2,656 Fees to litigants 56,777 Insurance 567 Marshal's fees 5,863 Office 1,169 Payroll taxes 3,510 Professional fees 4,564 Salaries and wages 29,730 Supplies 325 Telephone 2,022 Uniforms 260 Debt Service: Interest 538 Principal TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE - BEGINNING FUND BALANCE - ENDING (4,830) 380 S (4.450'> See Accountants' Compilation Report. -5-

8 REQUIRED SUPPLEMENTARY INFORMATION -6-

9 General Fund Budgetary Comparison Schedule Year Ended December 31,2013 Original/ Variance Final Favorable Budget Actual (Unfavorable) REVENUES Marshal fees $ 60,000 $ 26,378 $ (33,622) Fees from civil suits 35,000 62,392 27,392 Intergovernmental TOTAL REVENUES 117, ,323 (2,677) EXPENDITURES Current Advertising Automobile 5,600 4,262 1,338 Bank fees 100 1,177 (1,077) Contract labor 1,400 2,656 (1,256) Dues and subscriptions Fees to litigants 56,000 56,777 (777) Insurance (67) Marshal's fees 3,750 5,863 (2,113) Office 400 1,169 (769) Payroll taxes 800 3,510 (2,710) Postage Professional fees 2,000 4,564 (2,564) Repairs and maintenance Salaries and wages 33,200 29,730 3,470 Supplies (125) Telephone 1,300 2,022 (722) Travel Uniforms Capital Outlay Debt Service: Interest 1, Principal 9, TOTAL EXPENDITURES , ) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES - (4,830) (4,830) FUND BALANCE - BEGINNING _ FUND BALANCE - ENDING $ $ ) o O O See Accountants' Compilation Report. -7-

10 SCHEDULE OF FINDINGS AND RESPONSES Section I - Summary of Accountants' Results Financial Statements Accountant issued a compilation report on the financial statements. No reportable conditions in internal control over financial reporting and its operation were disclosed. Four non-compliances which were material to the financial statements were disclosed. Section H - Financial Statement Findings 2013-lC Local Governmental Budget Act - Budgetary Authority and Control Condition: Criteria: Effect: Recommendation: Response: Responsible Party: The Marshal did not adopt and make the 2013 original budget available for public inspection until December 24, 2013 as required and therefore may be in violation of Louisiana Revised Statutes 39:1308. La. R.S. 39:1308 requires a political subdivision to have the budget completed and made available for public inspection no later than 15 days prior to the beginning of each fiscal year and adopted before the beginning of the fiscal year. Violation of Local Government Budget Act. The Marshal should prepare, adopt, implement and, if necessary, amend a budget on an annual basis and make it available for public inspection no later than fifteen days prior to the beginning of each fiscal year. The Marshal did adopt and make available the original 2013 budget late in December However, the Ward Marshal adopted and made available its 2014 original budget timely and will continue to comply with the budget requirements in the future. Joseph Lockett, Sr., Ward Marshal C Louisiana Audit Law Condition: Criteria: The Marshal did not have an audit and related work and examination of his financial statements for the fiscal year ended December 31, 2013 submitted to the Louisiana Legislative Auditor by June 30, 2014 and therefore may be in violation of Louisiana Audit Law (La. R.S. 24:513). La. R.S. 24:513 requires governmental audits and related work and examination of quasi-public agencies, as follows: if during the fiscal year revenues and other sources are equal to or less than $50,000 the auditee shall annually file a certification of receiving $50,000 of less in funds along with sworn financial statements as required by La. R.S. 24:514; if during the fiscal year revenues and other sources are equal to or greater than $50,000 but less than $200,000 the auditee shall have an annual compilation of its financial statements, with or without

11 SCHEDULE OF FINDINGS AND RESPONSES - CONTINUED For the Year Ended December 31,2013 Effect: Recommendation: Response: Responsible Party: footnotes; if during the fiscal year revenues and other sources are greater than $200,000 but less than $500,000, the auditee shall have an annual review of its financial statements along with an attestation report in accordance with Louisiana Governmental Audit Guide; and if during the fiscal year revenues and other sources equal to or exceed $500,000, the auditee shall have an annual audit of its financial statements. Possible Violation of the Louisiana Audit Law. The Marshal should timely file its annual compiled financial statements with the Louisiana Legislative Auditor by the statutory deadline of six months after the end of the fiscal year. The Ward Marshal will catch up and file its future reports as timely as possible. Joseph Lockett, Sr., Ward Marshal C Delinquent Payroll Taxes Condition: Criteria: Effect: Recommendation: Response: Responsible Party: Various payroll tax returns and payments were prepared, filed and paid late. Significant penalties have been and will be assessed for failure to file and pay said taxes. The federal and state tax codes require that payroll tax returns and payments be prepared and filed accurately and timely. Late payment and filing penalties of $799 were paid in Management should ensure timely filing of all payroll tax returns to avoid late filing and penalties regardless of availability of cash. Funding should be provided to get current in the payment of these taxes. The Marshal has filed all payroll tax returns due at the date of this report and all payroll taxes are current. Joseph Lockett, Sr., Ward Marshal C Use of Public Money Condition: Criteria: Effect: Recommendation: Response: Responsible Party: A charitable contribution of $100 was made to a local nonprofit organization for charitable purposes. Article 7, Section 14 of the 1974 Louisiana Constitution prohibits the use of funds, credit, property, or things of value of the political subdivision from loaning, pledging, or donating to or for any person, association, or corporation, public or private. Possible violation of Article 7, Section 14 of the 1974 Louisiana Constitution. Management should ensure that donations of this type do not occur in the future and the Marshal's funds are used strictly for allowable public purposes. The Marshal is now aware the he cannot legally make these type of donations will comply in the future. Joseph Lockett, Sr., Ward Marshal -9-

12 SUMMARY OF PRIOR YEAR FINDINGS For the Year Ended December 31, (C) Local Governmental Bndget Act - Budgetary Authority and Control: Corrective Action Taken: According to the Louisiana Local Governmental Budget Act, the budget must be submitted and made available for public inspection not later than fifteen days prior to the beginning of the fiscal year. The Marshal did not adopt an original 2012 budget and may not have complied with the Louisiana Local Government Budget Act, as a result. The Marshal shall comply in the future (C) Louisiana Audit Law: Corrective Action Taken; The Marshal did not comply with La. R.S. 24:514 regarding the timely filing of his 2012 annual compiled financial statements with the Louisiana Legislative Auditor by the due date of June 30, The Marshal will comply in the future. Findings and Questioned Costs for Federal Awards: N/A -10-