CADDO CO RRECTIO NAL CENTER Shreveport,Louisiana. FinancialStatem ents June

Transcription

1 CADDO CO RRECTIO NAL CENTER Shreveport,Louisiana FinancialStatem ents June

2 CADDO CO RRECTIO NAL CENTER Shreveport,Louisiana FinancialStatem ents June Table ofcontents FinancialStatem ents: Com bined Balance Sheet-A lfund Types and AccountG roups G eneralfund Statem entofrevenues,expenditures,and Changes in Fund Balance Statem entofrevenues,expenditures, and Changes in Fund Balance- Budgetand Actualon a Budgetary Basis Notes to FinancialStatem ents Supplem entalinform ation Schedules -Fiduciary Funds -Agency Funds Com bining Balance Sheet Schedule ofchanges in Balances Due to Taxing Bodies and Others ndependenta uditor's Report Report on C om pliance and on internalcontrolo ver FinancialReporting Based on an A uditof FinancialStatem ents Perform ed in Accordance W ith G overnm enta uditing Standards

3 C A D D O C O R R EC TIO NA L C EN TER Shreveport,Louisiana Com bined Balance Sheet-A lfund Types and A ccountg roups June 30,2002 (with memorandum only totalsforjune 30,2001) Governm ental Fund Types General Fund Fiducia~ Fund Type- Agency Funds AccountG roups Gene~ l Fixed Assets Genera Long-Term Obligations Totals M em orandum O nlv Assets and OtherDebits Cash and cash equivalents [nvestm ents Receivables Inventory Fixed assets Am ountto be provided foraccrued claim s Am ountto be provided foraccrued vacation $ 2,909,536 $ 30,301 $ 1,536, $ 2,939,837 $ 3,836,284 1,536,360 51, ,501 24,233 24, , ,346,385 71, , Totalassetsandotherdebits $ 4,497,560 $ 30,301 $ 936,501 $ 854,354 $ 6, $7, 121,183 Liabilities,Equity and OtherCredits Liabilities Accounts payables Accrued expenses Due to others Accrued claim s payable Accrued vacation TotalLiabilities 30, $ $ 24, $ 267, ,957 30,301 24, , $ 66, ,401 41,389 60, ,844 1, Equity and othercredits Investm entin generalfixed assets Fund balance Reserved forinventory Unreserved -undesignated 51,664 3,990, , ,664 3, ,671 4,913,204 Totalequity and othercredits 4,041, , Totalliabilities,equity and ethercredits $ 4, $ 936,501 $ 854,354 $6,318,716 $7,121,183 See accompanying notesto financialstatements 1

4 C A D D O C O R R ECTIO NA L C EN TER Shreveport,Louisiana G eneralfund Statem entofrevenues,expenditures,and C hanges in Fund Balance Yearended June 3b,2002 (with comparative amounts forthe yearended June 30,2001) Revenues: Sales tax Intergovernm entalrevenues: State sources: Housing state prisoners State supplementalpay Caddo Parish Sheriff Caddo Parish Com m ission Com m issions forservices -com m issary sales Telephone revenue Interest M isce laneous Totalrevenues $ 8,782,786 $ 7,904,128 2,876, ,255 2,597, , ,804 76, , ,963, , ,000 2,588, , , , ,468,898 Expenditures: Current-public safety: Personalserv ices and related benefits Materials and supplies Statutory charges Contractualcharges Othercharges Capitaloutlay Totalexpenditures 13,101, ,525 1,625,085 1,007, ,346 26, ,680, ,662 1,750, ,884 58,298 50, Excess (deficiency)ofrevenues over(under)expenditures Fund balances atbeginning ofyear Fund balances atend ofyear (943,035) 772,222 4, See accompanying notesto financialstatements 2

5 CA DDO CO R RECTIO NA L C ENTER S hreveport,louisiana G eneralfund Statem entofrevenues,expenditures and Changes in Fund Balances Budgetand Actualon a Budgetary Basis Yearended June 30,2002 (with comparative amountsforthe yearended June 30,2001) Revenues: Sales tax Intargovem m anta~revenues: State sources: Housing state prisoners State supplem entalpay Basic Training Reim bursem ent Localgrants: Caddo Parish Sheriff Caddo Parish Com m ission Com m issions forservices -com m issary sales Telephone revenue Interest M isce laneous Totalrevenue Budget 2002 Actual Variance - Favorable (Unfavorabte~_ 2001 Actual $ 8,700,000 $ 8,609,309 $ (691) $ 8,380,997 2, ,000 2,000 2,800, , ,000 80, ,934, ,569, , , , ,708 11,737 (2,000) (230,064) (1,074) 8,636 (3,804) 72,539 (30,013.). 2,882, ,000 2,588, , , , Expenditures: Current-public safety: Personalservices and related benefits Matedals and supplies Statutory charges Contractualcharges Othercharges Capitaloutlay Totalexpenditures 13,248,000 1,067, ,000 1,780, , ,701,000 13,059, , ,065 1,013, , ,914 (1,363,065) 766,131 11,705, ,305 1,840, , ,150 (6,150) 57, ,504, ,209 14,776,293 Excess(deficiency)ofrevenuesover(under) expenditures 1,214,000) (1,047,864) 166,196 1,145,396 Fun~ balance atbeginning ofyear ,358,049 4,212,653 Fund balance atend ofyear $ 4,144,049 $ 4,310, See accompanying notesto f~nancialstatements 3

6 CA DDO CO RRECTIO NAL CENTER Shreveport,Louisiana Notes to FinancialStatem ents June Note 1 - Reporting Entity and Sum m ary of Significant Accounting Policies The Caddo CorrectionalCenter ("Center") was created by the Caddo Parish Commission ("Commission")underthe provisions oflouisiana Revised Statute 33:1236 providing forthe maintenance and operation ofa parish prison.the jailisa modern correctionalfacility thathasa m axim um capacity of1,070 m ale and fem ale inm ates, Reporting Entity The basic criterion fordeterm ining w hethera governm entalorganization should be included in a prim ary governm entalunit's reporting entity forfinancialstatem ents is financialaccountability. Financialaccountability includes the appointm ent of a voting majority ofthe organization's governing body and the ability ofthe primary governmentto im pose its wilon the organization orifthere is a financialbenefitburden relationship.in addition,an organization w hich is fisca ly dependenton the prim ary governm entshould be included in its reporting entity. By intergovernmentalagreement between the Caddo Parish Sherif ("Sheriff") and the Commission,the Sherif manages and operates the jailfacility.the Sherif also maintains accounting records, prepares annual budgets, and prepares financial inform ation. The operation ofthe Center is funded by the one-quarter centsales tax.the Sherif receives directly alfunds generated from any source as a resultofoperations atthe jail,including concessions,telephones,and grants,alofwhich are dedicated to the operation ofthe jail facility. U ltim ate responsibility for the facility is vested in the Com m ission. The financial operations ofthe facility are reflected in the financialstatem ents ofthe Com m ission and are notreflected in the financialstatem ents ofthe Sherif. The accom panying financial statem ents present the financial position and results of operations ofthe Center relating only to the Sheriff's responsibility to operate the Center. These statem ents do notreport the expenditures relating to the m aintenance ofthe Center since it is the Com m ission's responsibility to m aintain the Center,nor do these financial statem ents presentthe financialposition orresults ofoperations ofthe Sherif. The accounting policies ofthe Centerconform to genera ly accepted accounting principles as applicable to governm entalunits.the fo low ing is a sum m ary ofthe m ore significantpolicies: Basis of Presentation -The Center's operations are accounted forw ith a separate setof self-balancing accounts that com prise its assets,liabilities,fund balance,revenues,and expenditures. The fo low ing fund types and accountgroups are utilized G overnm ental Fund - The G overnm ental Fund is that fund through w hich m ost governm entalfunctions are financed.the acquisition,use,and balances ofexpendable financialresources and the related liabilities are accounted forthrough the governm ental fund.the G eneralfund is accounted foron a spending or"financialflow " m easurem ent focus.this m eans thatonly currentassets and currentliabilities are genera ly included

7 on the balance sheet.reported fund balance (netcurrent assets) is considered a m easure of "available spendable resources." G overnm entalfund operating statem ents presentincreases (revenues and otherfinancing sources)and decreases (expenditures and otherfinancing uses)in netcurrentassets.accordingly,the GeneralFund is said to presenta sum m ary of sources and uses of "available spendable resources" during a reporting period. The G eneralfund,as provided by Louisiana Revised Statute 33:1422,is the principal fund ofthe Centerand accounts forthe operations ofthe Center.The Center's prim ary source ofrevenue is a 1/4-centsales tax and appropriations from the Com m ission and the Sheriff.O thersources ofrevenue include perdiem forhousing state prisoners,state supplem ental pay for deputies, telephone revenue, and com m issary sales. G eneral operating expenditures are paid from this fund. Fiduciary Funds -Fiduciary funds are used to accountforassets held by the Centerin a trustee capacity or as an agent for individuals, private organizations, and other governm entalunits. Agency Funds - Agency Funds are used to account for assets held in a trustee capacity.the Center's Agency Funds are used for the receipt and disbursem ent of funds forinm ates ofthe Caddo CorrectionalCenter. The Agency Funds are custodialin nature (assets equalliabilities)and do notpresentresults ofoperations or have a m easurem entfocus. A ccount Groups - Account groups are used to establish accounting control and accountability forthe Center's generalfixed assets and generallong-term obligations, The G eneralfixed Assets AccountG roup is established to accountfora lfixed assets of the Center. The General Long- Term O bligations Account G roup is established to accountfora llong-term obligations ofthe Center. Basis of A ccounting -Basis ofaccounting refers to when revenues and expenditures are recognized in the accounts and reported in the financialstatem ents.basis of accounting relates to the tim ing of the m easurem ents m ade,regardless of the m easurem entfocus applied. The G overnm entalfund is accounted for using the m odified accrualbasis of accounting. Underthe m odified accrualbasis ofaccounting,revenues are recorded w hen susceptible to accrual,i.e.,both m easurable and available. Expenditures are recognized w hen the related fund liability is incurred. The GeneralFund uses the fo lowing practices in recording revenues and expenditures Revenues Intergovernm ental revenues and com m issions for services are recorded w hen the C enteris entitled to the funds. Sales taxes held by the interm ediary co lecting agency are recognized as revenue nterestincom e on tim e deposits is recorded as earned Substantia ly a lotherrevenues are recorded w hen received

8 Expenditures G overnm entalfund expenditures are genera ly recognized underthe m odified accrua basis ofaccounting w hen the related fund liability is incurred. The Fiduciary Funds (Agency Funds)use the folowing practices in recording additions and reductions: A dditions A dditions are genera ly notsusceptible to accrualbecause they are notm easurable until received in cash. How ever,som e additions becom e m easurable before being received and are accrued accordingly. Reductions Reductions are genera ly recognized under the m odified accrualbasis of accounting w hen the related fund liability is incurred. B udgetary A ccounting - The Center utilizes the fo low ing procedures in establishing the budgetary data forthe G eneralfund: 1) During June,the Sherif's ofice prepares the proposed operating budgetforthe fiscal year com m encing the fo low ing July 1. The operating budget includes proposed expenditures and the m eans offinancing them. 2) A public hearing is held on the proposed budget. 3) The adopted budgetis published in the oficialjournalpriorto the commencementof the fiscalyearforw hich the budgetis being adopted. 4) A public hearing is held forproposed amendments to the budget. 5) Amendedbudgetispublished inoficialjournal. 6) A lbudgetary appropriations lapse atthe end ofeach fiscalyear. 7) The budgetis prepared on the basis of cash estimates,which means thatfor budgetary purposes revenues are budgeted in the yearof receiptratherthan the yearearned,and expenditures are budgeted in the yearpaid ratherthan in the year incurred.inventory purchases are recorded as expenditures atthe tim e ofpurchase ratherthan underthe consum ption m ethod. Expenditures m ay notlega ly exceed appropriations on a fund basis. Encum brances and Budget = Encum brance accounting, under w hich purchase orders are recorded to reserve that portion of the applicable appropriation, is not em ployed. How ever, form alintegration ofthe budget into the accounting records is em ployed as a m anagem ent controldevice.budgetam ounts included in the accom panying financialstatem ents include the originaladopted budgetand a lsubsequentam endm ents. Inventory - Inventory consists ofdietary item s.inventory is valued atcostand is recorded as expenditures underthe consum ption m ethod using the first-in,first-outcostm ethod. Reported inventory is equa ly ofsetby a fund balance reserve thatindicates thatthis portion of fund balance does notconstitute available spendable resources even though itis a com ponent ofnetcurrentassets.

9 Fixed A ssets and Long-Term Liabilities -The accounting and reporting treatm entapplied to the fixed assets and long-term liabilities associated w ith the Center are determ ined by its m easurem entfocus where the focus is upon determ ination of changes in financialposition ratherthan upon netincom e determ ination. Fixed assets used in governmentalfund type operations (generalfixed assets)are accounted for in the G eneralfixed Assets Account G roup, rather than in governm entalfunds.such assets are valued at historicalcost,if purchased and atfair m arketvalue at date of gift,if donated.no depreciation has been provided forassets accounted forin the GeneralFixed A ssets AccountG roup. Long-term liabilities expected to be financed from governm entalfunds are accounted forin the G enerallong-term O bligations AccountG roup,notin the G eneralfund. The two accountgroups are not"funds." They are concerned only w ith the m easurem entof financialposition.they are notinvolved w ith m easurem entofresults ofoperations. Because oftheirspending m easurem entfocus,expenditure recognition forgovernm entalfund types is lim ited to exclude am ounts represented by noncurrent liabilities.since they do not afectnetcurrentassets,such long-term am ounts are notrecognized as governm entalfund type expenditures orfund liabilities.they are instead reported as liabilities in the G enerallong- Term O bligations AccountG roup. A ccrued Vacation ~Em ployees ofthe Centerearn from 10 to 20 days ofvacation leave each year, depending upon their length of service. Em ployees resigning or heirs of deceased em ployees m ay be paid for unused vacation leave attheircurrentrate of pay.sick leave is granted atthe discretion ofthe Sheriff,butem ployees are notpaid foraccum ulated sick leave upon retirem ent or resignation.the Center accrues costs incurred for vacation leave in the GeneralLong-Term O bligations AccountG roup.accrued sick leave benefits are notaccrued due to the Center's policy of notpaying benefits upon term ination.no accrualis m ade in the G eneral Fund because the current portion of the liability does not exceed a norm alyear's accum ulation ofbenefits and is deem ed im m aterial. Investm ents -Investm ents are reported atfairvalue based on quoted m arketprices.fairvalue is the am ount at which a financialinstrum ent could be exchanged in a current transaction betw een w iling parties,otherthan in a forced orliquidation sale. State statues genera ly authorize the Center to invest in direct United States Treasury obligations;indebtedness issued orguaranteed by federalgovernmentalagencies (provided such obligations are backed by the fulfaith and creditofthe U.S.government);indebtedness issued or guaranteed by federa ly sponsored U.S.governm ent agencies;tim e certificates of depositofstate banks organized underthe law s of Louisiana and nationalbanks having their principalofice in the state oflouisiana;orm utualortrustfund institutions w hich are registered w ith the Securities and Exchange Com m ission. In addition, localgovernm entalentities in Louisiana are authorized to investin the Louisiana AssetManagementPoolInc.(LAMP),a nonprofitcorporation form ed by an initiative ofthe State Treasurer and organized underthe law s ofthe State oflouisiana,w hich operates a localgovernm entinvestm entpool.

10 W hile LAM P is not required to be a registered investm ent com pany under the Investm ent Com pany Actof 1940,its investm entpolicies are sim ilarto those established by Rule 2-a-7, w hich governs registered m oney m arketfunds,the LAM P portfolio includes only securities and otherobligations in w hich localgovernm ents in Louisiana are authorized to invest.the do lar weighted average portfolio m aturity oflam P investm ents is restricted to notm ore than 90 days and consists ofno securities w ith m aturity in excess of397 days.the fairvalue o,finvestm ents is determ ined on a weekly basis to m onitorany variances between am ortized cost.lam P is designed to be highly liquid to give participants im m ediate access to theiraccountbalances. Forfinancialreporting purposes,investm ents w ith the LAM P are treated as cash equivalents. Reservations of Fund Balance - Reserves represent these portions of fund balance not appropriable forexpenditure orlegaliy segregated fora specific future use. Claim s and Judgm ents -Claims and judgments are recorded as expenditures in governmental funds for the am ount that w il be liquidated w ith current available financial resources. The rem ainderofany liability is recorded in the G enerallong-term O bligations AccountG roup. Com parative TotalData -Com parative am ounts and totaldata forthe prioryearhave been presented in the accom panying financialstatem ents to provide an understanding ofchanges in the C enter's financialposition. Total Colum ns - Amounts in the "Totals (Memorandum Only)" columns of the financial statem ents representa sum m ation ofthe com bined financialstatem entline item s ofthe G eneral Fund, Fiduciary Fund, General Fixed Assets Account G roup, and the G eneral Long-Term O bligations Account G roup and are presented for analyticalpurposes only.the sum m ation includes fund types and account groups that use diferent bases of accounting.therefore, amounts shown in the "Totals (Memorandum Only)" columns are not comparable to a consolidation and do notrepresentthe totalresources available forthe C enter. Use of Estim ates - The preparation of financial statem ents in conform ity w ith genera ly accepted accounting principles requires m anagem entto m ake estim ates and assum ptions that afect the reported am ounts of assets and liabilities and disclosure of contingentassets and liabilities at the date of the financial statem ents and the reported am ounts of revenues, expenditures, expenses, and other financing sources and uses during the reporting period. Actualresults could differfrom those estim ates. Note 2 -Budgetary Data Budgets and BudgetBasis of A ccounting -The budgetis adopted on a cash basis which m eans that for budgetary purposes revenues and expenditures are recorded in the year received (paid)ratherthan in the yearearned (incurred).inventory items are also recorded at the tim e purchased ratherthan w hen consum ed. Revisions m ade to the originalg eneralfund expenditures budgetwas as fo lows G eneralfund O riginal Budget $ 15,635,000 Total Revision $ 1,066,000 $ Revised Budget ,000

11 Adjustments necessary to convertthe excess ofrevenues overexpenditures atthe end ofthe yearon the budgetary basis to a basis consistentw ith genera ly accepted accounting principles (GAAP)are as folows: Excess ofrevenuesand otherfinancing sources over(under) expenditures and otherfinancing uses (budgetary basis) ($ 1,047,804 Accrualofexpenditures atjune 30,2002 Accrualofexpenditures atjune 30,2001 Accrualofsales tax and otherrevenue atjune 30,2002 A ccrualofsales tax and otherrevenue atjune 30,2001 Netrevenue and expenditure accruals Excess ofexpenditures over(under)revenuesand other financing sources (GAAP basis) 943,035 Note 3 =C ash and C ash Equivalents A ldeposits ofthe Centerare held by area financialinstitutions.atjune 30,2002,the carrying amountofthe Center's cash deposits was $2,939,837 and the bank balance was $3,725,316. The diference in the bank balance and the carry ing am ountis due to the outstanding checks at June 30,2002.Ofthe bank balance,$100,000 was covered by federaldepository insurance (GASB Category 1)and $3,625,316 was co[lateralized with securities held by the pledging financialinstitution's trustdepartmentoragent,butin the Center's name (GASB Category 2). Note 4 - Receivables Receivables in the G eneralfund atjune are as fo low s Sales tax Intergovernm entalrevenues: State funds -housing state prisoners Caddo Parish Com m ission -inm ate subsistence Supplem entalpay Refunds and reim bursem ents Telephone revenue O ther Total 481, , ,136 63,074 ' 149,796 26,

12 Note 5 -GeneralFixed Assets A sum m ary ofchanges in generalfixed assets fo low s Balance July 1~2001 Additions Retirem ents and other adjustments Balance June A utom obiles,ofice furniture and equipment $ 938 Com puterequipm ent $ 98,838 ($ 543 5, ,119 ) $ 820, $ 1,046,595 $ 104,025 ($ 216,119 ) $ 936,501 Note 6 Long-Term O bligations A sum m ary ofchanges in accrued com pensated absences and accrued claim s fo low s C laim s A ccrued Vacation Balance,July 1,2001 Netchange Balance.June $ ( $ 42,404 $ 775,844 18,171 } 54, $ 830,121 Note 7-Defined BenefitPension Plan Description of Plan - The Center provides retirem ent, death, and disability benefits to substantia ly a lof its em ployees through the Sherif's Pension and Relief Fund of Louisiana ("System"),a cost-sharing multiple-employer public employee statewide retirement system ("PERS"),controled and administered by a separate board oftrustees.a lsherifs and al deputies who are found to be physica ly fitatthe tim e oforiginalem ploym entare required to participate in the System. Funding Status and Progress - Benefitprovisions are established in accordance with Louisiana State Statute.The System issues a publicly available financialreport that includes financial statem ents and required supplem entary inform ation.thatreport m ay be obtained by w riting to the Board of Trustees ofthe C enters'pension and Relief Fund of Louisiana,P.O.Box 3162, M onroe.la Funding Policy -Contributionsto the System include one-halfofone percent(0.50% )ofthe taxes show n to be co lectible by the tax ro ls ofeach parish and a directappropriation from the State oflouisiana.state statute requires covered em ployees to contribute a percentage oftheir salaries to the System. As provided by Louisiana Revised Statute 11:103, the em ployer contributions are determined by an actuarialvaluation and are subjectto change each year based on the results ofthe valuation forthe priorfiscalyear.covered em ployees w ere required to contribute 9.8%,9.7%,and 9.7% oftheirsalary forthe years ended June 30,2002,2001 and 2000,respectively.The Sherif is required to contribute 6% forthe years ended June 30,2002 and 2001and 5% for the year ended June 30,2000,of covered em ployees'salaries. The 10

13 Center's contributions forthe years ended June 30,2002,2001 and 2000 were $661,077, $512,310 and $470,148,respectively,equalto the required contribution for each year. In accordance w ith G ASB Statem ent No.27, A ccounting for Pensions by State and Local Governm ental Em ployers, the net pension obligation w as determ ined to be zero. Prior to adoption ofg A SB 27,the C enterdid notreporta pension liability forthe System. Note 8 -Postretirem entbenefits In addition to the pension benefits described in Note 7,the Centerprovides certain continuing postretirem ent health care and life insurance benefits through the Louisiana Sheriff's Association G roup Benefits Plan in accordance w ith state statutes to a lretired em ployees w ho were participants of the plan prior to their retirem ent date.the prem ium s for retiree health insurance are paid by the Center w ith life or dependent care prem ium s being paid by the retiree.the Centerrecognizes the costofproviding these benefits as an expenditure on a payas-you-go basis when the m onthly prem ium s are due. AtJune 30,2002,there were twentyfive (25)retirees receiving benefits.the Center's costofbenefits provided to retirees was approxim ately $131,041for2002. Note 9 -Changes in A gency Fund Balances A sum m ary ofchanges in agency fund balances due to others fo lows Balance July 1, 2001 Additions Reductions Agency Funds: Inmate PersonalFund $ 21,357 $ 959,822 $ Inm ate W elfare Fund 20, Balance June 30, ,963 $ 30,216 78, Total $ 41,389 $ 1,018,656 $ 1,029,744 $ 30,301 Note 10 -C ontingencies,litigation,and Claim s Litigation AtJune 30,2002,the Centeris nam ed as defendantin severallaw suits.in the opinion ofthe Center's legalcounsel,no claim s orsuits existforwhich there is insufi cientinsurance coverage and resolution ofthese m atters w ilnothave a m aterialadverse efecton the financialcondition ofthe Center. Claim s Accrued claims payable of $24,233 have been established for the long-term portion of a settlementthatis to be paid atapproximately $18,000 for2003 and atapproximately $12,000 peryearfor2004 and Risk M anagem ent The Center is exposed to various risks of loss related to torts; theft of, dam age to and destruction ofassets;and errors and om ission.these risks are handled by the Centerthrough the purchase of various com m ercial insurance policies w ith vary ing coverage lim its, deductibles,and prem ium s based on the type ofpolicy.no significantreductions in insurance coverage from coverage in the prior year occurred and no claim s exceeded the Center's insurance coverage foreach ofthe pastthree years.

14 C A D D O C O R R EC TIO NA L C EN TE R S hreveport,louisiana Fiduciary Funds -A gency Funds Com bining Balance Sheet June Assets Cash and cash equivalents Receivable Totalassets Inm ate W elfare Fund Inm ate Personal Fund Tota 30, Liabilities D ue to others Totalliabilities $ $ $ 30,216 $ 30,216 $ $ See accompanyingindependentauditors'report. 12

15 C A D D O C O R R EC T IO NA L C EN TE R S hreveport,louisiana Fiduciary Funds -A gency Funds Schedule of Changes in Balances Due to O thers Forthe yearended June 30,2002 Inm ate W elfare Fund Inm ate Personal Fund Tota Balances,July 1, ,032 $ 21,357 $ Additions: Deposits -inm ates Telephone com m issions Intereston investm ents O theradditions Totaladditions 58, ,567 58, Reductions Purchases ofpersonalitem s Subscriptions Teacherservices G eneralsupplies O fice equipm entand fixtures Inm ate supplies Educationalprogram s Refunds to inm ates 912 5,780 7,331 1,239 27,595 11, ,780 7,331 1,239 27,595 11,154 Otherreductions(medical/dentalservices) Totalreductions Balances.June See accompanying independentauditors'reporṭ 13

16 R O B ER TS,CH E R RY & CO M PAN Y Certified Public A ccountant& Consultants The Honorable Steve Prator Caddo CorrectionalCenter Shreveport,Louisiana: ndependenta uditor's Report W e have audited the accom panying financialstatem ents ofthe Caddo CorrectionalCenter,a com ponent unitofthe Caddo Parish Com m ission forfinancialreporting purposes,as ofand forthe yearended June 30,2002,as listed in the foregoing table ofcontents.these financialstatem ents are the responsibility of the Caddo Parish Sherif's m anagem ent.o ur responsibility is to express an opinion on these financial statem ents based on ouraudit. W e conducted ourauditin accordance with auditing standards generaly accepted in the United States of Am erica and the standards applicable to financialaudits contained in Governm enta uditing Standards, issued by the Com ptro ler G eneralof the United States.Those standards require that we plan and perform the audit to obtain reasonable assurance about w hether the financialstatem ents are free of m aterialm isstatem ent.an auditincludes exam ining,on a testbasis,evidence supporting the am ounts and disclosures in the financialstatem ents.an auditalso includes assessing the accounting principles used arid significant estim ates m ade by m anagem ent, as w e l as evaluating the overa l financial statem entpresentation.w e believe thatourauditprovides a reasonable basis forouropinion. As described in Note 1,the accom panying financialstatem ents ofthe Caddo CorrectionalCenterpresent the financialposition and results ofoperations ofonly thatportion ofthe funds and accountgroups ofthe Cadde Parish Sherif thatis attributable to the operations ofthe Caddo CorrectionalCentercovered in the intergovernm entalagreem entexecuted between the Caddo Parish Com m ission and the Caddo Parish Sherif. In our opinion,the financialstatem ents referred to above present fairly,in a lm aterialrespects,the financialposition ofthe Caddo CorrectionalCenteras ofjune 30,2002,and the results ofits operations forthe yearthen ended in conform ity w ith accounting principles generally accepted in the United States of Am erica. In accordance w ith Governm enta uditing Standards',w e have also issued a reportdated Septem ber18, 2002,on ourconsideration ofthe Caddo CorrectionalCenter's internalcontroloverfinancialreporting and on ourtests of its com pliance with certain provisions of laws,regulations,contracts and grants.that reportis an integralpartofan auditperform ed in accordance w ith Governm entauditing Standards and should be read in conjunction with thisreportin considering the results ofouraudit, O urauditwas m ade forthe purpose ofform ing an opinion on the financialstatem ents taken as a whole. The accom panying supplem entalinform ation schedules listed in the foregoing table of contents are presented forpurposes ofadditionalanalysis and are nota required partofthe basic financialstatem ents ofthe Caddo CorrectionalCenter.Such information has been subjected to the auditing procedures applied in the auditofthe basic financialstatem ents and,in ouropinion,is fairly stated in a lm aterial respects in relation to the basic financialstatem ents taken as a w hole. A Corporation ofcertified Public Accountants Shreveport,Louisiana Septem ber18,2002 RO BERTS,C HERRY and CO M PANY 14 A Corporstlon of Cerlfled P ublic A ccountants o P.O.BOX 4278 ~ SHREVEPORT,LA e (318) ~ FAX (318)

17 R O B ER TS,CH ER RY & C O M PA N Y Certified Public Accountants,Consultants Reporton Com pliance and on InternalControlOverFinancialReporting Based on an A uditof FinancialStatem ents Perform ed in A ccordance W ith G overnm enta uditing Standards The Honorable Steve Prator Caddo Parish Sherif Shreveport,Louisiana: W e have audited the financialstatem ents ofthe Caddo CorrectionalCenteras ofand forthe yearended June 30,2002,and have issued ourreportthereon dated Septem ber18,2002.w e conducted ourauditin accordance w ith auditing standards genera ly accepted in the United States ofam erica and the standards applicable to financialaudits contained in Govern m entauditing Standards, issued by the Com ptro ler G eneralofthe United States. Com pliance As part of obtaining reasonable assurance about w hether the Caddo Correctional Center's financial statem ents are free ofm aterialm isstatem ent,we perform ed tests ofits com pliance with certain provisions of law s,regulations,contracts and grants,noncom pliance w ith w hich could have a directand m aterial efecton the determ ination offinancialstatem entam ounts.however,providing an opinion on com pliance with those provisions was notan objective ofourauditand,accordingly,we do notexpress such an opinion.the results ofourtests disclosed no instances ofnoncom pliance thatare required to be reported underg overn m enta uditing Standards. InternalControlOverFinancialReporting In planning and perform ing ouraudit,we considered the Caddo CorrectionalCenter's internalcontrolover financialreporting in orderto determ ine ourauditing procedures forthe purpose ofexpressing ouropinion on the financialstatem ents and notto provide assurance on the internalcontroloverfinancialreporting. O urconsideration ofthe internalcontroloverfinancialreporting would notnecessarily disclose a lm atters in the internalcontroloverfinancialreporting thatm ightbe m aterialweaknesses.a m aterialweakness is a condition in which the design oroperation ofone orm ore ofthe internalcontrolcom ponents does not reduce to a relatively low levelthe risk thatm isstatem ents in am ounts thatwould be m aterialin relation to the financial statem ents being audited m ay occur and not be detected w ithin a tim ely period by em ployees in the norm alcourse ofperform ing theirassigned functions.w e noted no m atters involving the internalcontroloverfinancialreporting and its operation thatw e considerto be m aterialweaknesses. However, w e noted other m atters involving the internal control over financial reporting and other operationalm atters thatw e have reported to the Sherif in a separate letterdated Septem ber18,2002. This reportis intended solely forthe inform ation and use ofthe Caddo Parish Sherif,m anagem ent,the State oflouisiana Legislative Auditor,and federalaw arding agencies and pass-through entitles and is not intended to be and should notbe used by anyone otherthan these specified parties. A Corporation ofcertified Public Accountants Shreveport,Louisiana Septem ber18,2002 RO BERTS,CHERRY and CO M PANY 15 A Corporatlo~ of Certit~ed Public Accouuta~ts ~ P.o.Box 4278 ~ SHREVEPORT,LA )278 ~ (318) ~ ~'AX (318)