EASTBATONROUGEPARISH

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1 /;o5~ EASTBATONROUGEPARISH BATONROUGE,LOUISIANA ASESOR'SOFICE FINANCIALREPORT December31,197?Frl,A Cerbhed Public Acountants Advisors Busines 050UnitedPlazaBoulevard.Suite60,BatonRouge,Louisiana70809,Phone:(504) /Facsimile:(504)

2 TableofContents INDEPENDENTAUDITOR'SREPORTON THEGENERALPURPOSEFINANCIALSTATEMENTS December31,197 GENERALPURPOSEFINANCIALSTATEMENTS CombinedBalanceShet-AlFundTypesandAcountGroups NotestoFinancialStatements ExhibitA 34 INDIVIDUALFUNDSTATEMENTS GeneralFund ComparativeStatementofRevenue,Expendituresand ChangesinFundBalances-BudgetandActual ExhibitB 14 INDEPENDENTAUDITOR'SREPORTONCOMPLIANCEAND ONINTERNALCONTROLOVERFINANCIALREPORTINGBASED ONANAUDITOFINANCIALSTATEMENTSPERFORMEDIN ACORDANCEWITHGOVERNMENTAUDITINGSTANDARDS

3 rprtlhl~di;iy,'?~ aljibnhlois ~U,~IP~Ad',%o[~ INDEPENDENTAUDITOR'SREPORTONTHEGENERALPURPOSE FINANCIALSTATEMENTS HonorableFrankGranger,HI,Asesor EastBatonRougeParishAsesor'sOfice BatonRouge,Louisiana WehaveauditedtheacompanyingeneralpurposefinancialstatementsoftheEastBaton RougeParishAsesor'sOficeas&December31,197,andtheindividualfundfinancial statementsoftheeastbatonrougeasesor'soficefortheyearsendeddecember31, 197and196,aslistedintheacompanyingtableofcontents.Thesegeneralpurpose financialstatementsaretheresponsibilityoftheeastbatonrougeparishasesor's Ofice'smanagement.Ouresponsibilityistoexpresanopiniononthesegeneralpurpose financialstatementsbasedonouraudit. Weconductedourauditinacordancewithgeneralyaceptedauditingstandardsand GovernmentAuditingStandards,isuedbytheComptrolerGeneraloftheUnitedStates. Thosestandardsrequirethatweplanandperformtheauditobtainreasonableasurance aboutwhetherthegeneralpurposefinancialstatementsarefreofmaterialmistatement. Anauditincludesexamining,onatestbasis,evidencesuportingtheamountsand disclosuresinthegeneralpurposefinancialstatementsanauditalsoincludesasesingthe acountingprinciplesusedandsignificantestimatesmadebymanagement,aswelas evaluatingtheoveralgeneralpurposefinancialstatementspresentation.webelievethat ourauditprovidesareasonablebasisforouropinion. Inouropinion,thegeneralpurposefinancialstatementsreferedtoabovepresentfairly,in almaterialrespects,thefinancialpositionoftheeastbatonrougeparishasesor'sofice atdecember31,197,inconformitywithgeneralyaceptedacountingprinciples.also, inouropinion,theindividualfundfinancialstatementsreferedtoabovepresentsfairly,in almaterialrespects,theresultsofoperationsofsuchfundfortheyearsthenended,in conformitywithgeneralyaceptedacountingprinciples. InacordancewithGovernmentAuditingStandards,wehavealsoisuedoureportdated April24,198onourconsiderationoftheEastBatonRougeParishAsesor'sOfice's internalcontroloverfinancialreporting,andourtestsofitscompliancewithlawsand regulations. PROVOST,SALTER,HARPER~;ALFORD,L.L.C April24, UltedPla,t0~,IS,fi[,1if1PmLPLoulslal3a70~1f'4Pl-,n~,~I1,'L'I172[,i,~m,I,1~7',175

4 GeneralPurposeFinancialStatements

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6 NotestoFinancialStatements 1.SumaryofSignificantAcountingPolicies AsprovidedbyArticleVI,Section24oftheLouisianaConstitutionof1974,theAsesoris electedbythevotersoftheparishandservesafouryearterm.theasesorasesesalrealand movablepropertyintheparish,subjectoadvaloremtaxation.theassesorisauthorizedto apointasmanydeputiesasmaybenecesaryfortheficientoperationoftheoficeandprovides asistancetothetaxpayersoftheparish.thedeputiesareauthorizedtoperformalfunctionsof theofice,butheasesorisoficialyandpecuniarilyresponsiblefortheactionsofthedeputieṣ TheAsesor'soficeislocatedintheEastBatonRougeParishCourthouseinBatonRouge, Louisiana.TheAsesor'sOficemploys59employes,including58deputies.Inacordance withlouisianalaw,theasesorbasesrealandmovablepropertyasesmentsonconditions existingonjanuary1ofthetaxyear.theasesorcompletesanasesmentlistingbymay1of thetaxyearandsubmitsthelistotheparishgoverningauthorityandthelouisianatax Con'mus:onasprescribedbylaw.Oncetheasesmentlistingisaproved,theAsesorsubmits theasesmentroltotheparishtaxcolectorwhoisresponsibleforcolectingandistributing taxestothevarioustaxingbodies. AtDecember31,197,thereare193,205realpropertyasesmentstotaling$1,984,916,760. Thisrepresentsanincreaseof10,231asesmentstotaling$120,624,80overtheprioryear, causedprimarilybytheincreasingnumberofnewbusinesesandnewconstructionintheparish duringtheyear. A.BasisofPresentation TheacompanyingeneralpurposefinancialstatementsoftheEastBatonRougeParish Asesorhavebenpreparedinconformitywithgeneralyaceptedacountingprinciples (GAP)asapliedtogovernmentalunits.TheGovernmentalAcountingStandardsBoard (GASB)istheaceptedstandard-setingbodyforestablishingovernmentalacountingand financialreportingprinciples. B.ReportingEntity Asthegoverningauthorityoftheparish,foreportingpurposes,theEastBatonRougeParish CouncilisthefinancialreportingentityfortheEastBatonRougeParish.Thefinancial reportingentityconsistsof(a)theprimarygovernment(theparishcouncil),(b)organizations forwhichtheprimarygovernmentisfinancialyacountable,and(c)otherorganizationsfor whichnatureandsignificanceoftheirelationshipwiththeprimarygovernmentaresuchthat exclusionwouldcausethereportingentity'sfinancialstatementstobemisleadingor incomplete.

7 NotestoFinancialStatements,Continued GovernmentalAcountingStandardsBoardStatementNo.14establishedcriteriafor December31,197 determiningwhichcomponentunitshouldbeconsideredpart&theeastbatonrougeparish Councilforfinancialreportingpurposes.Thebasicriterionforincludingapotential componentunitwithinthereportingentityisfinancialacountability.thegasbhasetforth criteriatobeconsideredindeterminingfinancialacountability.thiscriteriaincludes: 1.Apointingavotingmajorityofanorganization'sgoverningbody,and a.theabilityofthecounciltoimposeitswilonthatorganizationand/or bthepotentialfortheorganizationtoprovidespecificfinancialbenefitstorimpose specificfinancialburdensonthecouncil. 2.Organizationsforwhichthecouncildoesnotapointavotingmajoritybutarefiscaly 3.Organizationsforwhichthereportingentityfinancialstatementswouldbemisleadingif dependentonthecouncil. dataoftheorganizationisnotincludedbecauseofthenatureorsignificanceofthe relationship. BecausethecouncildoesnotapointheAsesor,doesnotprovidefunding,orhaveany controlovertheasesor,theasesorwasdeterminednotobeacomponentunitofthe EastBatonRougeParishCouncil.Theacompanyingfinancialstatementspresent informationonlyonthefundsmaintainedbytheasesorandonotpresentinformationon thecouncil,thegeneralgovernmentservicesprovidedbythatgovernmentalunit,ortheother governmentalunitsthatcomprisethefinancialreportingentityofeastbatonrougeparish. C.FundAcounting TheAsesorusesfundsandacountgroupstoreportonitsfinancialpositionandtheresults ofitsoperations.fundacountingisdesignedtodemonstratelegalcomplianceandtoaid financialmanagementbysegregatingtransactionsrelatingtocertaingovernmentfunctionsor activities. Afundisaseparateacountingentitywithaself-balancingsetofacounts.Ontheother hand,anacountgroupisafinancialreportingdevicedesignedtoprovideacountabilityfor certainasetsandliabilitiesthatarenotrecordedinthefundsbecausetheydonotdirectly afectnetexpendableavailablefinancialresources.

8 NotestoFinancialStatements,Continued Fundsoftheasesorareclasifiedasgovernmentalfunds.Governmentalfundsacountfor theasesor'sgeneralactivities,includingthecolectionandisbursementofspecificorlegaly restrictedmoniesandtheacquisitionofgeneralfixedasets.governmentalfundsofthe asesorinclude: GeneralFundTheGeneralFund,(knownastheAsesor'sSalaryandExpenseFund)as providedbylouisianarevisedstatute47:1906,istheprincipalfundoftheasesorand acountsfortheoperationoftheasesor'sofice.compensationreceivedfromthevarious ta>an~bodies,prescribedbyformulainlouisianarevisedstatutes47: ,is acountedforinthisfund.generaloperatingexpendituresarepaidfromthisfund. D.BasisofAcounting Theacountingandfinancialreportingtreatmentapliedtoafundisdeterminedbyits measurementfocus.thegeneralfundisacountedforusingacurentfinancialresources measurementfocus.withthismeasurementfocus,onlycurentasetsandcurentliabilities aregeneralyincludedonthebalanceshet.theoperatingstatementofthegeneralfund presentsincreasesandecreasesinetcurentasets.themodifiedacrualbasisof acountingisusedbythegeneralfundthegeneralfundusesthefolowingpracticesin recordingrevenuesandexpenditures: RevenuesTaxrevenueisrecognizedinthebudgetaryperiodforwhichthetaxesare colectedrevenuesarereceivedfromthesherifandtaxcolectorofeastbatonrouge Parishinvaryingperiodicpaymentsastheadvaloremtaxesarecolected.Advaloremtaxes areasesedondecember1,forthecalendaryear,becomedueondecember31,andare consideredpastdueandsubjectopenaltiesifnotpaidbyjanuary31,ofthefolowingyear. Interestrevenueisrecognizedwhenearned. Expenditures.Expendituresaregeneralyrecognizedunderthemodifiedacrualbasisof acountingwhentherelatedfundliabilityisincured. E.Budgets Anualy,theAsesor'sOficeadoptsabudgetfortheGeneralFundonabasisconsistent withgeneralyaceptedacountingprinciples.thebudgetarypracticesincludepublicnotice, inspectionandhearingrequirements,whichmustbecompletedpriortodecember15ofeach year.formalbudgetaryintegrationisnotemployedasamanagementcontroldeviceduring theyear.budgetedamountsareasoriginalyadopted.theasesorhasadministrative authoritytomakechangesoramendmentswithinvariousbudgetclasifications.no amendmentshavebenmadetotheoriginalbudget.

9 NotestoFinancialStatements,Continued F.CashandInvestments December31,197 Cashincludesamountsindemandepositsaswelashorterminvestmentswithamaturity datewithinthremonthsofthedateacquiredbytheasesor'sofice.understatelaw,the asesormaydepositfundsindemandeposits,interest-beatingdemandeposits,ortime depositswithstatebanksorganizedunderlouisianalaworanyotherstateoftheunited States,orunderthelawsoftheUnitedStates. Understatelaw,theasesormayinvestinUnitedStatesbonds,treasurynotes,orcertificates ofdepositinlouisianabanks,oranyotherfederalyinsuredinvestment. G.FixedAsets Fixedasetsarerecordedasexpendituresathetimepurchased,andtherelatedasetsare capitalizedinthegeneralfixedasetacountgroupnodepreciationhasbenprovidedon generalfixedasets.alfixedasetsarevaluedathistoricalcost. H.CompensatedAbsences Vacationandsickleavebenefitsmustbetakenintheyearearnedandnocaryoverofunused leaveisalowed.inacordancewiththeprovisionofstatementoffinancialacounting StandardsNo.43,AcountingForCompensatedAbsences,noliabilityisrecordedfor I.TotalColumnsOnStatements nonvestingacumulatingrightstoreceivevacationorsickpaybenefits. Thetotalcolumnsonthestatementsarecaptioned"MemorandumOnly"toindicatethathey arepresentedonlytofacilitatefinancialanalysis.datainthesecolumnsdonotpresent financialpositionoresultsofoperationsinconformitywithgeneralyaceptedacounting principles.neitherisuchdatacomparabletoaconsolidation. J.RiskManagement TheAsesor'sOficeisexposedtovariousrisksoflosrelatedtotorts;thet~of,damageto, andestructionofasets;erorsandomisions,injuriestoemployes;andnaturaldisasters. Theasesor'sOficepurchasescomercialinsurancepoliciesatlevelswhichmanagement believesisadequatetoprotectheasesor'sofice.setledclaimsresultingfromtheserisks havenotexcededthecomercialinsurancecoverageinanyofthepasthrefiscalyears.

10 NotestoFinancialStatements,Continued 2.LeviedTaxes Thefolowingisasumaryofauthorizedandleviedadvaloremtaxes December31,197 Authorized Mileae Mileap( Levied Asesor'sSalaryandExpenseFund Thefolowingaretheprincipaltaxpayersfortheparish(amountsexpresedinthousands) T TweofBusines Asesed Valuation TotalAsesed Exon Percentageof Valuation SouthCentralBel GulfStatesUtilities Oilandchemicalrefining Telephonecompany GeorgiaPacificCorporation Utility 157,632,090 BankOne BatonRougeWaterWorks Pulprocesing Comercialbank 51,509,430 5,205,190 Utility 28,740,740 25,902,80 15,124,

11 NotestoFinancialStatements,Continued 3.CashDepositsandInvestments Depositsandinvestmentsarecariedatcostandconsistofthefolowing Carying Amount December31,197 Balance Bank Cash,includingcertificatesofdepositwithamaturitydate withinthremonths Insured(FDIC) Uninsured $563,534$585,72 Colateralheldbythepledgingbank,butnotinthe Asesor'sname(category3) 20_0 Investments,consistingofcertificatesofdepositwitha _ maturitydateinexcesofthremonthshavingamarket valueaproximatingthecaryingamount Insured(FDIC) Umnsured Colateralheldbythepledgingbank,butnotinthe 60,060,0 Asesor'sname(category3) 4040 $1763_534$I78572 I_0.0I_0.0 Thesedepositsarestatedatcost,whichaproximatesmarketUnderstatelaw,thesedeposits(or theresultingbankbalances)mustbesecuredbyfederaldepositinsuranceorthepledgeof securitiesownedbythefiscalagentbank.themarketvalueofthepledgedsecuritiesplusthe federaldepositinsurancemustataltimesequaltheamountondepositwiththefiscalagent. Thesesecuritiesareheldinthenameofthepledgingfiscalagentbankinaholdingorcustodial bankthatismutualyaceptabletobothparties. Eventhoughthepledgedsecuritiesareconsidereduncolateralized(Category3)underthe provisionsofgasbstatementno.3,louisianarevisedstatute39:129imposesastatutory requirementonthecustodialbanktoadvertiseandselthepledgedsecuritieswithin10daysof beingnotifiedbytheasesorthathefiscalagenthasfailedtopaydepositedfundsupondemand.

12 NotestoFinancialStatements,Continued 4.ChangesinGeneralFixedAsets December31,197 Asumaryofchangesinequipmentfolows January1, Balance 197 Aditions Deletions December31 Balance Equipment $5,93$3,937$ $589, RetirementComitments LouisianaAsesors'RetirementFund PlanDescrspnonandPrortsonsSubstantialy,alemployesoftheEastBatonRouge ParishAsesor'sOficearemembersoftheLouisianaAsesors'RetirementSystem ("System"),acostsharing,multiplemployerdefinedbenefitpensionplanadministeredbya separateboardoftrustes. Alfultimemployeswhoareundertheageof60athetimeoforiginalemploymentand whoarenotdrawingearnedretirementbenefitsfromanyotherpublicretirementsystemin LouisianarerequiredtoparticipateintheSystem.Employeswhoretireatorafterage5 withatleast12yearsofcreditedservice,orwhoretireatorafterage50withatleast30years ofcreditedservice,arentitledtoaretirementbenefit,payablemonthlyforlife,equalto3% oftheirfinalaveragesalaryforeachyearofcreditedservice,notoexced10%oftheirfinal averagefinalaveragesalaryisthemploye'saveragesalaryoverthe36consecutiveor joinedmonthsthatproducethehighestaverage.employeswhoterminatewithatleast12 yearsofservice,andwhodonotwithdrawtheiremployecontributions,mayretireatorafter age5andreceivethebenefitacruedtotheirdateoftermination.thesystemalsoprovides deathandisabilitybenefits.benefitsarestablishedbystatestatute. TheSystemisuesananualpubliclyavailablefinancialreportthatincludesfinancial statementsandrequiredsuplementaryinformationforthesystem.thatreportmaybe obtainedbywritingtothelouisianaasesors'retirementsystem,postoficebox1786, Shreveport,Louisiana ,orbycaling(318) DescriptionofFundingPohcv.Planmembersarerequiredbystatestatutetocontribute70 percentoftheiranualcoveredsalaryandtheeastbatonrougeparishasesorisrequired tocontributeatanactuarialydeterminedrate.thecurentrateis5.0percentofanual coveredpayrol.contributionstothesystemalsoincludeone-fourthofonepercent(one 10

13 NotestoFinancialStatements,Continued percentfororleansparish)ofthetaxeshowntobecolectiblebythetaxrolsofeachparish, plusrevenuesharingfundsapropriatedbythelegislature.thecontributionrequirementsof planmembersandtheeastbatonrougeparishasesorarestablishedandmaybeamended bystatestatute.asprovidedbylouisianarevisedstatute1:103,themployer contributionsaredeterminedbyactuarialvaluationandaresubjectochangeachyearbased ontheresultsofthevaluationforthepriorfiscalyear.theeastbatonrougeparish Asesor'scontributionstotheSystemfortheyearsendingDecember31,197,196,and 195were$80,241,$86,930,and$79,392respectively,equaltotherequiredcontributions foreachyear. 6.PostRetirementComitments TheAssesor'sONceprovidescertainhealthcareandlifeinsurancebenefitsforetired employes.substantialyaloftheasesor'soficemployesmaybecomeligibleforthose benefitsiftheyreachnormalretirementagewhileworkingfortheonce.thecostoftheretire healthcareandlifeinsurancebenefitsisrecognizedasexpendituresasmonthlypremiumsare paid.for197,thosecoststotaled$45,525.

14 IndividualFundStatements 12

15 GeneralFund Thegeneralfundisusedtoacountforesourcestraditionalyasociatedwithgovernmentwhicharenot December31,197 requiredlegalyorbysoundfinancialmanagementobeacountedforinanotherfund

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17 CertiflBd PublicAcountants ~uct,ese Adv,su,s INDEPENDENTAUDITOR'SREPORTONCOMPLIANCEANDONINTERNAL CONTROLOVERFINANCIALREPORTINGBASEDONANAUDITOF FINANCIALSTATEMENTSPERFORMEDINACORDANCEWITH GOVERNMENTAUDIT1NGSTANDARDS HonorableFrankGranger,I,Asesor EastBatonRougeParishAsesor'sOfice BatonRouge,Louisiana WehaveauditedthegeneralpurposefinancialstatementsoftheEastBatonRougeParish Assesor'sOficeasofandfortheyearendedDecember31,197,andhavetsuedour reporthereondatedapril24,198.weconductedourauditinacordancewthgeneraly aceptedauditingstandardsandthestandardsaplicabletofinancialauditscontainedin GovernmentalAudztmgStandards,isuedbytheComptrolerGeneraloftheUmtedStates. AspartofobtainingreasonableasuranceaboutwhethertheEastBatonRougeParish Asesor'sOfice'sgeneralpurposefinancialstatementsarefreofmaterialmistatement, weperformedtestsofitscompliancewithcertainprovisionsoflaws,regulations,and contracts,noncompliancewithwhichcouldhaveadirectandmaterialefectonthe determinationofinancialstatementamounts.however,providinganopinionon compliancewiththoseprovisionswasnotanobjectiveofourauditand,acordingly,wedo notexpresuchanopinion.theresultsofourtestsdisclosednoinstancesof noncompliancethatarerequiredtobereportedundergovernmentauditingstandards. Inplaningandperformingouraudit,weconsideredtheEastBatonRougeParish Asesor'sOfice'sinternalcontroloverfinancialreportinginordertodetermineour auditingproceduresforthepurposeofexpresingouropiniononthegeneralpurpose financialstatementsandnotoprovideasuranceontheinternalcontroloverfinancial reporting.ourconsiderationoftheinternalcontroloverfinancialreportingwouldnot necesarilydisclosealmatersintheinternalcontroloverfinancialreportingthatmightbe materialweakneses.amaterialweaknesisaconditioninwhichthedesignoroperation ofoneormoreoftheinternalcontrolcomponentsdoesnotreducetoarelativelylowlevel theriskthatmistatementsinamountsthatwouldbematerialinrelationtothegeneral UntiedPlazaBindSn,teIlU,~iO~Juq~[nJt~tan,~7Ol~ObPliot-:,14"I/~,[a~i.d,'tJlte'79075

18 purposefinancialstatementsbeingauditedmayocurandnotbedetectedwithinatimely periodbyemployesinthenormalcourseofperformingtheirasignedfunctions.wenoted nomatersinvolvingtheinternalcontroloverfinancialreportinganditsoperationthatwe considertobematerialweakneses. ThisreportisintendedfortheinformationoftheAsesor,managementandtheLouisiana LegislativeAuditor.However,thisreportisamaterofpublicrecordanditsdistributionis notlimited. PROVOST,SALTER,HARPER~ALFORD,L.L.C April24,198 16