28[~]JL!~'~2GPHq:30 EASTBATONROUGEPARISH

Transcription

1 REC~HEB LEGT'~,~_,~,f;"!~t~,UOTOR 28[~]JL!~'~2GPHq:30 EASTBATONROUGEPARISH BATONROUGE,LOUISIANA ASESOR'SOFICE FINANCIALREPORT December31,202 Certified PublicAcountants Advisors Busines 850UnitedPlazaBoulevard,Suite60,BatonRouge,Louisiana70809.Phone:(25) /[aesimile:(25)

2 TableofContents INDEPENDENTAUDITOR'SREPORTON December31,202 THEGENERALPURPOSEFINANCIALSTATEMENTS! GENERALPURPOSEFINANCIALSTATEMENTS CombinedBalanceShet-AlFundTypesandAcountGroups GeneralFund StatementofRevenue,Expendituresand ExhibitA 4 StatementofRevenue,Expendituresand ChangesinFundBalance NotestoFinancialStatements ChangesinFundBalance-BudgetandActual ExhibitB ExhibitC INDEPENDENTAUDITOR'SREPORTONCOMPLIANCEAND ONINTERNALCONTROLOVERFINANCIALREPORTINGBASED ONANAUDITOFINANCIALSTATEMENTSPERFORMEDIN ACORDANCEWITHGOVERNMENTAUDIT[NGSTANDARDS 18 MANAGEMENTLETER Apendix1-Asesor'sResponsetoManagementLeter 202

3 Public Acountants Busines Advisers INDEPENDENTAUDITOR'SREPORTONTHEGENERALPURPOSE FINANCIALSTATEMENTS HonorableBrianWilson,Asesor EastBatonRougeParishAsesor'sOfice BatonRouge,Louisiana WehaveauditedtheacompanyingeneralpurposefinancialstatementsoftheEastBaton RougeParishAsesor'sOficeasofDecember31,202,andfortheyearthenendedas listedinthetableofcontents.thesegeneralpurposefinancialstatementsarethe responsibilityoftheeastbatonrougeparishasesor'sofice'smanagement.our responsibilityistoexpresanopiniononthesegeneralpurposefinancialstatementsbased onouraudit. Weconductedourauditinacordancewithauditingstandardsgeneralyaceptedinthe UnitedStatesofAmericandthestandardsaplicabletofinancialauditscontainedin GovernmentAuditingStandards,isuedbytheComptrolerGeneraloftheUnitedStates. T/losestandardsrequirethatweplanandperformtheauditobtainreasonableasurance aboutwhetherthegeneralpurposefinancialstatementsarefreofmaterialmistatement. Anauditincludesexamining,onatestbasis,evidencesuportingtheamountsand disclosuresinthegeneralpurposefinancialstatements.anauditalsoincludesasesing theacountingprinciplesusedandsignificantestimatesmadebymanagement,aswelas evaluatingtheoveralgeneralpurposefinancialstatementspresentation.webelievethat ourauditprovidesareasonablebasisforouropinion. Inouropinion,thegeneralpurposefinancialstatementsreferedtoabovepresentfairly,in almaterialrespects,thefinancialpositionoftheeastbatonrougeparishasesor's OficeasofDecember3l,202,theresultsofoperationsfortheyearthenended,in conformitywithacountingprinciplesgeneralyaceptedintheunitedstatesofamerica. 850UnitedPlazaBlvd.,Suite608,BatonRouge,Louisiana70809,Phone:(25) /Facsimilu:(25)

4 InacordancewithGovernmentAuditingStandards,wehavealsoisuedoureportdated June13,203onourconsiderationoftheEastBatonRougeParishAsesor'sOfice's internalcontroloverfinancialreporting,andourtestsofitscompliancewithcertain provisionsoflawsandregulations.thatreportisanintegralpartofanauditperformedin acordancewithgovernmentauditingstandardsandshouldbereadinconjunctionwith thisreportinconsideringtheresultsofouraudit. PROVOST,SALTER,HARPER8~;ALFORD,L.L.C June13,203

5 GeneralPurposeFinancialStatements" December31,202

6 ExhibitA Liabilities Acountspayable Compensatedabsences EquityandOtherCredits Totaliabilities hlvestlnenthigeneralfixedasets Fundbalance Unreserved,undesignated Totalequityandothercredits TotalLiabilities,EquityandOtherCredits 4,196 29,627 $ ,196 4~196 29,627 3,823 SeNoteatoFinancialStatement~ 4

7 ExhibitB StatementofRevenue,ExpendituresandChanges GeneralFund YearEndedDecember31,202 infundbalance Revenues Advaloremtaxes Chm-gesforservices $2,717,89 Interest 89,402 Miscelaneous 7, TotalRevenues 2,85,42 Expenditures Curent Generalgovernment Personalservices Otherservicesandcharges 2,070,520 Capitaloutlay Suplies 192,723 36,39 3,173 TotalExpenditures 2,32,815 ExcesofRevenuesOverExpenditures FundBalances 52,627 Begining Ending $3,801,542 SeNotestoFinancialStatements 5

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9 NotestoFinancialStatements 1.SumaryofSignificantAcountingPolicies AsprovidedbyArticleVI,Section24oftheLouisianaConstitutionof1974,theAsesoris electedbythevotersoftheparishandservesafouryearten.theasesorasesesalrealand movablepropertyintheparish,subjectoadvaloremtaxation.theasesorisauthorizedto apointasmanydeputiesasmaybenecesaryfortheficientoperationoftheoficeand providesasistancetothetaxpayersoftheparish.thedeputiesareauthorizedtoperformal functionsoftheofice,butheasesorisoficialyandpecuniarilyresponsiblefortheactionsof thedeputies. TheAsesor'soficeislocatedintheEastBatonRougeParishCourthouseinBatonRouge, Louisiana.TheAsesor'sOficemploys50employes.InacordancewithLouisianalaw,the AsesorbasesrealandmovablepropertyasesmentsonconditionsexistingonJanuary1ofthe taxyear.theasesorcompletesanasesmentlistingbymay1ofthetaxyearandsubmitsthe listotheparishgoverningauthorityandthelouisianataxcomisionasprescribedbylaw. Oncetheasesmentlistingisaproved,theAsesorsubmitstheasesmentroltotheparish taxcolectorwhoisresponsibleforcolectingandistributingtaxestothevarioustaxingbodies. AtDecember31,202,thereare195,264realpropertyasesmentstotaling$2,53,605,40. Thisrepresentsanincreaseof1,873asesmentsandanincreaseof$96,147,180inasesed valueovertheprioryear. A.BasisofPresentation TheacompanyingeneralpurposefinancialstatementsoftheEastBatonRougeParish Asesorhavebenpreparedinconformitywithgeneralyaceptedacountingprinciples (GAP)asapliedtogovernmentalmtits.TheGovernmentalAcountingStandardsBoard (GASB)istheaceptedstandard-setingbodyforestablishingovernmentalacountingand financialreportingprinciples. B.ReportingEntity Asthegoverningauthorityoftheparish,foreportingpurposes,theEastBatonRougeParish CouncilisthefinancialreportingentityfortheEastBatonRougeParish.Thefinancial reportingentityconsistsof(a)theprimarygovernment(theparishcouncil),(b)organizations forwhichtheprimarygovenmaentisfinancialyacountable,and(c)otherorganizationsfor whichnatureandsignificanceoftheirelationshipwiththeprimarygovernmentaresuchthat exclusionwouldcausethereportingentity'sfinancialstatementstohemisleadingor incomplete.

10 NotestoFinancialStatements,Continued December31,202 GovernmentalAcountingStandardsBoardStatementNo.14establishedcriteriafor determiningwhichcomponentunitshouldbeconsideredpartoftheeastbatonrouge ParishCouncilforfinancialreportingpurposes.Thebasicriterionforincludingapotential componentunitwithinthereportingentityisfinancialacountability.thegasbhaset forthcriteriatobeconsideredindeterminingfinancialacountability.thiscriteriaincludes: 1.Apointingavotingmajorityofanorganization'sgoverningbody,and a.theabilityofthecounciltoimposeitswilonthatorganizationand/or b.thepotentialfortheorganizationtoprovidespecificfinancialbenefitstorimpose specificfinancialburdensonthecouncil. 2.Organizationsforwhichthecouncildoesnotapointavotingmajoritybutarefiscaly 3.Organizationsforwhichthereportingentityfinancialstatementswouldbemisleadingif dependentonthecouncil. dataoftheorganizationisnotincludedbecauseofthenatureorsignificanceofthe relationship. BecausethecouncildoesnotapointheAsesor,doesnotprovidefimding(otherthanthe useofacilities),orhaveanycontrolovertheasesor,theasesorhasdeterminedthathe oficeisnotacomponentunitoftheeastbatonrougeparishcouncil.theacompanying financialstatementspresentinformationonlyonthefundsmaintainedbytheasesorando notpresentinformationonthecouncil,thegeneralgovernmentservicesprovidedbythat governmentalunit,ortheothergovernmentalunitsthatcomprisethefinancialreporting entityofeastbatonrougeparish. C.FundAcounting TheAsesorusesfundsandacountgroupstoreportonitsfinancialpositionandtheresults ofitsoperations.fundacountingisdesignedtodemonstratelegalcomplianceandtoaid financialmanagementbysegregatingtransactionsrelatingtocertaingovernmentfunctionsor activities. Afundisaseparateacountingentitywithaself-balancingsetofacounts.Ontheother hand,anacountgroupisafinancialreportingdevicedesignedtoprovideacountabilityfor certainasetsandliabilitiesthatarenotrecordedinthefundsbecausetheydonotdirectly afectnetexpendableavailablefinancialresources.

11 NotestoFinancialStatements,Continued December31,202 Fundsoftheasesorareclasifiedasgovernmentalfunds.Governmentalfundsacountfor theasesor'sgeneralactivities,includingthecolectionandisbursementofspecificor legalyrestrictedmoniesandtheacquisitionofgeneralfixedasets.governmentalfundsof theasesorinclude: GeneralFund.TheGeneralFund,(knownastheAsesor'sSalaryandExpenseFund)as providedbylouisianarevisedstatute47:1906,istheprincipalfundoftheasesorand acountsfortheoperationoftheasesor'sofice.compensationreceivedfromthevarious taxingbodies,prescribedbyformulainlouisianarevisedstatutes47: ,is acountedforinthisfund.generaloperatingexpendituresarepaidfromthisfund. AcountGroup.Thegeneralfixedasetsacountgroupisusedtoacountforfixedasets notacountedforinproprietaryortrustfunds.thegeneralong-termdebtacountgroupis usedtoacountforgeneralong-termdebtandcertainotherliabilitiesthatarenotspecific liabilitiesofproprietaryortrustfunds. D.BasisofAcounting Theacountingandfinancialreportingtreatmentapliedtoafundisdeterminedbyits measurementfocus.thegeneralfundisacountedforusingacurentfinancialresources measurementfocus.withthismeasurementfocus,onlycurentasetsandcurentliabilities aregeneralyincludedonthebalanceshet.theoperatingstatementofthegeneralfund presentsincreasesandecreasesinetctrentasets.themodifiedacrualbasisof acountingisusedbythegeneralfund.thegeneralfundusesthefolowingpracticesin recordingrevenuesandexpenditures: Revenues.Taxrevenueisrecognizedinthebudgetaryperiodforwhichthetaxesare colected.revenuesarereceivedfromthesherifandtaxcolectorofeastbatonrouge Parishinvaryingperiodicpaymentsastheadvaloremtaxesarecolected.Advaloremtaxes areasesedondecember1,forthecalendaryear,becomedueondecember31,andare consideredpastdueandsubjectopenaltiesifnotpaidbyjanuary31,ofthefolowingyear. Interestrevenueisrecognizedwhenearned. Expenditures.Expendituresaregeneralyrecognizedunderthemodifiedacrualbasisof acountingwhentherelatedfundliabilityisincured.

12 NotestoFinancialStatements,Continued December31,202 E.Budgets Anualy,theAsesor'sOficeadoptsabudgetfortheGeneralFundonthecashbasis, therefore,adjustmentsweremadeonexhibitctoincludeprioryearacrualsandremove curentyearacrualsfromtheactualamountsforcomparisonpurposestothebudgeted amotmts.thebudgetarypracticesincludepublicnotice,inspectionandhearing requirements,whichmustbecompletedpriortodecember15ofeachyear.formal budgetaryintegrationisnotemployedasamanagementcontroldeviceduringtheyear. Budgetedamountsareasoriginalyadopted.TheAsesorhasadministrativeauthorityto makechangesoramendmentswithinvariousbudgetclasifications.noamendmentshave benmadetotheoriginalbudget. F.CashandInvestments Cashincludesamountsindemandeposits,interest-bearingdemandeposits,andtime deposits.cashequivalentsincludeamountsintimedepositsandthoseinvestmentswith originalmaturitiesof90daysorles.understatelaw,theasesormaydepositfundsin demandeposits,interest-bearingdemandeposits,ortimedepositswithstatebanks organizedunderlouisianalaworanyotherstateoftheunitedstates,orunderthelawsof theunitedstates. InvestmentsarelimitedbyLouisianaRevisedStatute(R.S.)3:295andincludecertificates ofdepositandlouisianaasetmanagementpolwhichisauthorizedunderlouisiana RevisedStatute3:1321.Iftheoriginalmaturitiesofinvestmentsexced90days,theyare clasifiedasinvestments;however,iftheoriginalmaturitiesare90daysorles,theyare G.FixedAsets clasifiedascashequivalents.investmentsarereportedatcost.interestisacruedasearned. Fixedasetsarerecordedasexpendituresathetimepurchased,andtherelatedasetsare capitalizedinthegeneralfixedasetacountgroup.nodepreciationhasbenprovidedon generalfixedasetsandnoasetslesthan$50arecapitalizedinthegeneralfixedaset acountgroup.alfixedasetsarevaluedathistoricalcost. H.CompensatedAbsences EmployesoftheAsesor'sOficearnfromfivetotwentydaysofpaidvacationleaveper year,dependingonlengthofservice,andtwelvedaysofpaidsickleave.theyarealowedto acrueuptotwelvevacationdays.thesedaysarerecordedinthelongtermdebtacount

13 NotestoFinancialStatements,Continued December31,202 group.inacordancewithfasbstatementno.16,vestedoracumulatedvacationleaveis acruedandrecordedasearned.inacordancewiththeprovisionofstatementoffinancial AcountingStandardsNo.43,AcountingForCompensatedAbsences,noliabilityis recordedfornonvestingacumulatingrightstoreceivevacationorsickpaybenefits. I.TotalColumnsOnStatements Thetotalcolumnsonthestatementsarecaptioned"MemorandumOnly"toindicatethathey arepresentedonlytofacilitatefinancialanalysis.datainthesecolumnsdonotpresent financialpositionoresultsofoperationsinconformitywithgeneralyaceptedacounting principles.neitherisuchdatacomparabletoaconsolidation. J.RiskManagement TheAsesor'sOficeisexposedtovariousrisksoflosrelatedtotorts;theftof,damageto, andestructionofasets;erorsandomisions,injuriestoemployes;andnaturaldisasters. TheAsesor'sOficepurchasescomercialinsurancepoliciesatlevelswhichmanagement believesisadequatetoprotectheasesor'sofice.setledclaimsresultingfromthese riskshavenotexcededthecomercialinsurancecoverageinanyofthepasthrefiscal K.DeferedCompensationPlan years. TheAsesor'sOficeofersitsemployesadeferedcompensationplancreatedin acordancewithinternalrevenuecode457.theplan,availabletoalful-timemployes oftheasesor'sofice,permitsthemtodeferaportionoftheirsalaryuntilfutureyears. Alamountsofcompensationdefered,alpropertyandrightspurchased,andalincome, property,orightsare(untilpaidornradeavailabletothemployeorotherbeneficiary)in thelouisianapublicemployesdeferedplanandareheldintrnstforthexclusivebenefit oftheparticipantsandtheirbeneficiaries. ParticipantsmaycontributeaportionoftheirsalarywiththeAsesor'sOficematchingup to4%permonth,butotalcontributionsmaynotexcedtheamountdeterminedunderirs regulations.a1contributionsareimediatelyvested.theasesor'soficecontributed $42,038totheplanduringtheyearendedDecember3l,202.

14 NotestoFinancialStatements,Continued 2.LeviedTaxes Thefolowingisasumaryofauthorizedandleviedadvaloremtaxes Thefo December31,202 Authorized Milage Levied Milage Exon-Mobil EntergyGulfStates,Inc. BelsouthComunications GeorgiaPacificCorporation HiberniaNationalBank BankOne 3.CashandCashEquivalents Oilandchemicalrefining Utility Telephonecumpm~y Pulprocesing Comercialbanking Comercialbanking $179,79,210 57,982,360 51,590,760 49,656,890 26,421,30 25,237, % 2.29% 2.04% 1.96% 1.04% 1.0% AtDecember3l,202,theasesorhascashandcashequivalents(bokbalances)consistsofthe folowing: Demandeposits Timedeposits Repurchaseagrements LouisianaAsetManagementPol(LAMP) $ 72,87 59,0 407,764 1~325~037 Thesedepositsarestatedatcost,whichaproximatesmarket.UnderStatelaw,thesedeposits (ortheresultingbankbalances)mustbesecuredbyfederaldepositinsuranceorthepledgeof securitiesownedbythefiscalagentbank.themarketvalueofthepledgesecuritiesplusthe federaldepositinsurancemustataltimesequaltheamountondepositwiththefiscalagent. Thesesecuritiesareheldinthenameofthepledgingfiscalagentbankinaholdingorcustodial bankthatismutualyaceptabletobothparties. 12

15 NotestoFinancialStatements,Continued AtDecember31,202,theasesorhas$1,08,469indeposits(colectedbankbalances).These depositsaresecuredfromriskby$39,0ofederaldepositinsuranceand$689,469ofpledged securitiesheldbythecustodialbankinthenameofthefiscalagentbank(gasbcategory3). Eventhoughthepledgedsecuritiesareconsidereduncolateralized(Category3)underthe provisionsofgasbstatement3,r.s.39:129imposesastatutoryrequirementonthecustodial banktoadvertiseandselthepledgedsecuritieswithin10daysofbeingnotifiedbytheasesor thathefiscalagenthasfailedtopaydepositedfundsupondemand. InacordancewithGASBCodificationSectionI50.126,theinvestmentinLAMPatDecember 31,202($1,325,037)isnotcategorizedinthethreriskcategoriesprovidedbyGASB CodificationSectionI50.125becausetheinvestmentisinthepolofundsandthereforenot evidencedbysecuritiesthatexistinphysicalorbokentryform. LAMPisadministeredbyLAMP,Inc.,anon-profitcorporationorganizedunderthelawsofthe StateofLouisiana.OnlylocalgovernmententitieshavecontractedtoparticipateinLAMPhave aninvestmentinterestinitspolofasets.theprimaryobjectiveoflampistoprovideasafe environmentfortheplacementofpublicfundsinshort-term,highqualityinvestments.the LAMPportfolioincludesonlysecuritiesandotherobligationsinwhich1ocalgovernmentsin LonisianareauthorizedtoinvestinacordancewithLSA-R.S.3:295.Acordingly,LAMP investmentsarerestrictedtosecuritiesisued,guaranted,orbackedbytheu.s.treasury,the U.S.Government,oroneofitsagencies,enterprises,orinstrumentalities,aswelasrepurchased agrementscolateralizedbythosesecurities. EfectiveAugust1,201,LAMP'sinvestmentguidelineswereamendedtopermithe investmentingovernment-onlymoneymarketfunds.inits201regularsesion,thelouisiana Legislature(SenateBilNo.512,Act701)enactedLSA-R.S.3:295(A)(1)(h)whichalowsal municipalities,parishes,scholboards,andanyotherpoliticalsubdivisionsofthestatetoinvest in"investmentgrade(a-i/p-l)comercialpaperofdomesticunitedstatescorporations." EfectiveOctober1,201,LAMP'sInvestmentGuidelineswereamendedtoalowthelimited investmentina-1ora-l+comercialpaper. ThedolarweightedaverageportfoliomaturityofLAMPasetsisrestrictedtonotmorethan90 days,andconsistsofnosecuritieswithamaturityinexcesof397days.lampisdesignedto behighlyliquidtogiveitsparticipantsimediateacestotheiracountbalances.the investmentsinlamparestatedarefairvaluebasedonquotedmarketrates.thefairvalueis determinedonaweklybasisbylampandthevalueofthepositioninthexternalinvestment polisthesameasthevalueofthepolshares.

16 NotestoFinancialStatements,Continued December31,202 LAMP,Inc.isubjectotheregulatoryoversightofthestatetreasurerandtheboardofdirectors LAMPisnotregisteredwiththeSECasaninvestmentcompany. 4.Investments TheAsesor'sinvestmentsarecategorizedintothrecategoriesofcreditrisk: Category1.Insuredorcolateralizedwithsecuritiesheldbythentityorbyitsagentinthe Category2.Colateralizedwithsecuritiesheldbythepledgingfinancialinstitution'strust entity'sname. Category3.Colateralizedwithsecuritiesheldbythepledgingfinancialinstitution'strust departmentoragentinthentity'sname. departmentoragentbutnotinthentity'sname Atfiscalyear-endtheasesor'sinvestmentbalanceswereasfolows Balance Bok 1 Cateoc~ri~ CertificatesofDeposit $1,40,0$40,0$ 2 $1,0,0 3 5.ChangesinGeneralFixedAsets Asumaryofchangesinequipmentfolows. January1, Balance December31, Balance Equipment 202 AditionsDeletions RetirementComitments $475,373$36,39$30,707$481,065 LouisianaAsesors'RetirementFund PlanDescriptionandProvisions.Substantialy,alemployesoftheEastBatonRouge ParishAsesor'sOficearemembersoftheLouisianaAsesors'RetirementSystem 14

17 NotestoFinancialStatements,Continued ("System"),aCOStsharing,multiplemployerdefinedbenefitpensionplanadministeredbya December31,202 separateboardoftrustes. Alfultimemployeswhoareundertheageof60athetimeoforiginalemploymentand whoarenotdrawingearnedretirementbenefitsfromanyotherpublicretirementsystemin LouisianarerequiredtoparticipateintheSystem.Employeswhoretireatorafterage5 withatleast12yearsofcreditedservice,orwhoretireatorafterage50withatleast30years ofcreditedservice,arentitledtoaretirementbenefit,payablemonthlyforlife,equalto3% oftheirfinalaveragesalaryforeachyearofcreditedservice,notoexced10%oftheir finalaverage.finalaveragesalaryisthemploye'saveragesalaryoverthe36consecutive orjoinedmonthsthatproducethehighestaverage.employeswhoterminatewithatleast12 yearsofservice,andwhodonotwithdrawtheiremployecontributions,mayretireatorafter age5andreceivethebenefitacruedtotheirdateoftermination.thesystemalsoprovides deathandisabilitybenefits.benefitsarestablishedbystatestatute. TheSystemisuesananualpubliclyavailablefinancialreporthatincludesfinancial statementsandrequiredsuplementaryinformationforthesystem.thatreportmaybe obtainedbywritingtothelouisianaasesors'retirementsystem,postoficebox1469, BatonRouge,Louisiana ,orbycaling(25) DescriptionofFundingPolicy.Planmembersarerequiredbystatestatutetocontribute8.0 percentoftheiranualcoveredsalaryandtheeastbatonrougeparishasesorisrequired tocontributeatanactuarialydeterminedrate.thecurentrateis14.0percentofanual coveredpayrol.contributionstothesystemalsoincludeone-fourthofonepercent(one percentfororleansparish)ofthetaxeshowntobecolectiblebythetaxrolsofeachparish, plusrevenuesharingfundsapropriatedbythelegislature.thecontributionrequirementsof planmembersandtheeastbatonrougeparishasesorarestablishedandmaybe amendedbystatestatute.asprovidedbylouisianarevisedstatute1:103,themployer contributionsaredeterminedbyactuarialvaluationandaresubjectochangeachyearbased ontheresultsofthevaluationforthepriorfiscalyear.theeastbatonrougeparish Asesor'scontributionstotheSystemfortheyearsendingDecember31,202,201and 20were$173,34,$15,401and$90,087respectively,equaltotherequiredcontributions 7.PostRetirementComitments foreachyear. TheAsesor'sOficeprovidescertainhealthcareandlifeinsuralacebenefitsforetired employes.substantialyaloftheasesor'soficemployesmaybecomeligibleforthose benefitsiftheyreachnormalretirementagewhileworkingfortheofice.thecostoftheretire healthcareandlifeinsurancebenefitsisreco~aizedasexpendituresasmonthlypremiumsare 15

18 NotestoFinancialStatements,Continued paid.for202,thosecoststotaled$13,657.thenumberofretire'scurentlyreceiving December31,202 benefitsis2. 8.GASB34Implementation ]1June19,theGovernmentalAcountingStandardsBoard(GASB)unanimouslyaproved forstateandlocalgovernments.gasbstatementno.34establishednewfinancialreporting StatementNo.34,BasicFinancialStatements-andManagement'sDiscusionandAnalysis- requirementsforalstateandlocalgovernmentsandconsistsofthefolowing: A.ManagementDiscusionandAnalysis(MD&A)sectionprovidingananalysisofthe governmententity'soveralfinancialpositionandresultsofoperations. B.BasicFinancialStatements Government-widefinancialstatementspreparedusingtheconomicresources measurementfocusandtheacrualbasisofacounting.thesestatementsare designedtoprovideabroadoverviewofagovernmententity'sfinances,ina 2.Fundfinancialstatements,consistingofaseriesofstatementsthatfocusona manersimilartoprivatesectorbusines. government'smajorgovernmentalfunds,usingthemodifiedacrualbasisof acounting,andenterprisefunds,ifany. 3.Notestothefinancialstatementsthatincludevariousdisclosuresforthe government-wideandfundfinancialstatementstoensurethatacompletepicture 4.Requiredsuplementaryinformation,suchasbudgetarycomparisonschedules ispresented. Inadition,thisnewGASBstatementrequiresdepreciationexpensetobereportedinthe government-widefinancialstatements.however,depreciationexpensewilnotbereportedin thefundstatementsthatusethemodifiedacrualbasisofacounting. TheAsesor'soficewilimplementhegeneralprovisionsofGASBStatementNo.34bythe fiscalyearendingdecember31,204.

19 NotestoFinancialStatements,Continued December31,202 9.CompensatedAbsences AtDecember31,202,employesoftheAsesor'sOficehaveacumulatedandvested $29,627ofacruedvacationbenefits,whichwascomputedinacordancewithGASB CodificationSectionC60.Theamountisrecordedwithinthegeneralong-termdebtacount group.

20 Certified Public Busines Advisors INDEPENDENTAUDITOR'SREPORTONCOMPLIANCEANDONINTERNAL CONTROLOVERFINANCIALREPORTINGBASEDONANAUDITOF FINANCIALSTATEMENTSPERFORMEDINACORDANCEWITH GOVERNMENTAUDITINGSTANDARDS HonorableBrianWilson,Asesor EastBatonRougeParishAsesor'sOfice BatonRouge,Louisiana WehaveauditedthegeneralpurposefinancialstatementsoftheEastBatonRougeParish Asesor'sOficeasofandfortheyearendedDecember31,202,andhaveisuedour reporthereondatedjune13,203.weconductedourauditinacordancewithauditing standardsgeneralyaceptedintheunitedstatesofamericandthestandardsaplicable tofinancialauditscontainedingovernmentalauditingstandards,isuedbythe ComptrolerGeneraloftheUnitedStates. AspartofobtainingreasonableasuranceaboutwhethertheEastBatonRougeParish Asesor'sOfice'sgeneralpurposefinancialstatementsarefreofmaterialmistatement, weperformedtestsofitscompliancewithcertainprovisionsoflawsandregulations, noncompliancewithwhichcouldhaveadirectandmaterialefectonthedeterminationof financialstatementamounts.however,providinganopiniononcompliancewiththose provisionswasnotanobjectiveofourauditand,acordingly,wedonotexpresuchan opinion.theresultsofourtestsdisclosednoinstancesofnoncompliancethatarerequired tobereportedundergovernmentauditingstandards. InternalControlOverFinancialRenortine Inplaningandperformingouraudit,weconsideredtheEastBatonRougeParish Asesor'sOfice'sinternalcontroloverfinancialreportinginordertodetermineour auditingproceduresforthepurposeofexpresingouropiniononthegeneralpurpose financialstatementsandnotoprovideasuranceontheinternalcontroloverfinancial reporting.ourconsiderationoftheinternalcontroloverfinancialreportingwouldnot necesarilydisclosealmatersintileinternalcontroloverfinancialreportingthatmightbe materialweakneses.amaterialweaknesisaconditioninwhichthedesignoroperation 850UnitedPlozaBlvd.,Suite60,BatonRouge,Louisiana70909,Phone:(25) /Facsimile:{2U)

21 ofoneormoreoftheinternalcontrolcomponentsdoesnotreducetoarelativelylowlevel theriskthatmistatementsinamountsthatwouldbematerialinrelationtothegeneral pul"posefinancialstatementsbeingauditedmayocurandnotbedetectedwithinatimely periodbyemployesinthenormalcourseofperformingtheirasignedfunctions.we notednomatersinvolvingtheinternalcontroloverfinancialreportinganditsoperation thatweconsidertobematerialweakneseṣhowever,wenotedothermatersinvolving theinternalcontroloverfinancialreportingandotheroperationalmatersthatwehave reportedtoeastbatonrougeparishasesor'soficeinaseparateleterdatedjune13, 203. ThisreportisintendedfortheinformationoftheAsesor,managementandtheLouisiana LegislativeAuditorandisnotintendedtobeandshouldnotbeusedbyanyoneotherthan thesespecifiedparties.however,thisreportisamaterofpublicrecordandits distributionisnotlimited. PROVOST,SALTER,HARPER&~JALFORD,L.L.C June13,203

22 Certilied PublicAoDunlanto Busines Advisors MANAGEMENTLETER HonorableBrianWilson,Asesor EastBatonRougeParishAsesor'sOfice BatonRouge,Louisiana InplaningandperformingourauditofthefinancialstatementsoftheEastBatonRouge ParishAsesor'sOficefortheyearendedDecember31,202,weconsideredtheOfice's internalcontrolinordertodetermineourauditingproceduresforthepurposeofexpresing anopiniononthefinancialstatementsandnotoprovideasuranceoninternalcontrol. However,duringouraudit,webecameawareofmatersthatareoportunitiesfor strengtheninginternalcontrolsandoperatingeficiency.wepreviouslyreportedonthe Ofice'sinternalcontrolinoureportdatedJune13,203.Thisleterdoesnotafectour reportdatedjune13,203onthefinancialstatementsoftheeastbatonrougeparish Asesor'sOfice. Wewilreviewthestatusofthesecomentsduringournextauditengagement.Wehave alreadydiscusedthesecomentswithapropriatemembersofmanagement,madwewil bepleasedtodiscusthesecomentsinfurtherdetailatyourconvenience,toperformany aditionalstudyofthismater,ortoasistyouinimplementingtherecomendations.our comentsareasfolows: PuleyforUseofCelularPhones TheEastBatonRougeAsesor'sOficedoesnothaveaformalpolicyfortheuseof celularphones.aformalpolicywouldprovideguidanceforthebusinesuseandcareof DuringtheyearendedDecember31,202theOfice'sfundswereusedtopayforcelular chargestotaling$84.(aproximately$37amonthperphone)theasesor'soficehas twocelularphonesthatareasignedtotheasesorandhischiefdeputy.althoughthe costforeachphonewascustomarilywithintheplanlimitsthereisnoevidenceofreview forproprietyandreasonablenesofphoneusage. TheEastBatonRougeParishAsesor'sOficeshouldadoptaformalpolicyforthe businesuseofcelularphonesandreviewthedetailedmonthlybiltoensurethathe policyisbeingfolowed. 8B50UnitedPlazaBlvd.,Suile60,BaronRouge,Louisiana70909,P~I~:(25) /Facsimile:(25)

23 SeniorCitizenExemotion Inacordancewitharticle7:18(G)(1)oftheLouisianaConstitution,residentialproperty receiving"homesteadexemption"isentitledtoaspecialasesmentlevelifitisowned andocupiedbyapersonorpersonsixty-fiveyearsorolderwhoqualifybasedontheir personalincomelevel. Thelawstatesthat"aneligibleownershalaplyforthespecialasesmentlevelbyfilinga signedaplicationestablishingthatheownerqualifiesforthespecialasesmentlevelwith theasesoroftheparish".thelawdoesnotspecifywhethertheasesorhasadutyto verifytheowner'statementofeligibilityonsuchaplication.ourpreliminaryresearch indicatesthatasesorsinlouisianareaplyingavarietyofmethodsinanefecto complywiththislaw. TheEastBatonRougeParishAsesor'sOficeiscomplyingwiththislawasitinterpretsit byrequiringownerstofileasignedaplicationstatingthatheyareligibleforthespecial asesment. WerecomendyourequestheLouisianaTaxComisiontoisueguidelinesthatcanbe usedbylouisianasesorstofulfiltherequirementsofthislaw. PROVOST,SALTER,HARPER&ALFORD,LC June13,203 21

24 O ASESOR June23,203 Provost,Salter,Harper&Alford,L.L.C 850UnitedPlazaBlvd.,Suite60 BatonRouge,LA70809 InresponsetoyourmanagementleterdatedJune13,203,pleasebeadvisedthatwebelievewe areincompliancewiththelawsandregulationsthatarerelevantotheeastbatonrougeparish Asesor'sofice.Wedoapreciateyourstaf'srecomendationsforoportunitiestoimprove ouroperatingpractices. Policyforuseofcelulart~hones Althoughwebelievetheofice'scelphoneusageisveryreasonable,wedosethebenefitof documentingaformalpolicyandwildocumenthatpolicyinwriting.wewilalsoreviewthe detailedmonthlyinvoicestoensurethathepolicyisbeingfolowed. SeniorCitizenExemt~tion BasedonyourecomendationwewilrequestheLouisianaTaxComisiontoisue guidelinesrelativetotheverificationoftheligibilityrequirementsofthelaw. Weapreciatetheprofesionalismofyourstafduringtheconductofthisauditengagement Sincerely, EastBatonRougeParish 2 2ST.LOUISTRET-ROM126/BATONROUGE,LOUISIANA70802/(25)