ST.M A R TIN pa K ISkl A sse SSO R

Transcription

1 ST.M A R TIN pa K ISkl A sse SSO R st.m artinville,louisiana FinancialR eport y ear Ended D ecem ber 31,2002

2 TA BLE O F CON TEN TS Page IN D EPEN D EN T A U D ITO R S'REPO RT 1-2 GEN ERA L PURPO SE FIN AN CIAL STATEM EN TS (COM BINED STATEM ENTS -OVERVIEW ) Com bined balance sheet-governm entalfund type and accountgroup Statem entof revenues,expenditures,and changes in fund balan ce -budget(gaap basis)and actual-governmental fund ty pe -GeneralFund Statementofexpenditurescompared to budget(gaap basis)- GeneralFund N otes to finan cialsta tem ents IN TERN AL CON TRO L A N D COM PLIAN CE Reporton Com plian ce an d on InternalControlO ver FinancialReporting Based on an Auditof FinancialStatem entsperform ed in accordan ce w ith G overnm enta uditin~ Standards Schedule of Priorand CurrentAuditFindingsand M anagem ent's Corrective A ction Plan

3 C Burton KOl,aer.CPA" RUSSelF Champagne CPA" VmtorR Slaven.CPA" Conrad O Chapman,CPA' T~oy Courvile CPA' Gerald A Tr~bodeaux,Jr.,CPA AJlen J.LaBry CPA Har~,J Clostio,CPA PennyAngele Scruggins,CPA Christine L Cousin,CPA Man T Th~bo<Jeaux,CPA KelyM.Douce{,CPA Kennem J Rachal,CPA Chel~ L Bartley,CPA RobertS CartecCPA A Piofe'~k~PalAocou~im9 C~p~et~ KO LD ER,C HA M PA G NE,SLAV EN & C O M PA NY,LLC CERTIFIED PUBLIC ACCOUNTANTS EO.Box 250 Breaux Bridge,LA Phone (337) Fax(337) IN D EPEN D EN T AU D ITO RS'REPO RT W EB StFE W W W KCSRCPAS COM MEMBER OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOCIETY OF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS The H onorable Law rence Patin St.M artin Parish A ssessor W e have audited the accom panying generalpurpose financialstatem ents of the St.M artin Parish A ssessor,as of and forthe yearended D ecem ber 31,2002,as listed in the table of contents. These general purp ose financialstatementsare the responsibility of the St.M artin Parish Assessor. Ourresponsibility isto expressan opinion on these generalpurp ose financialstatem ents based on ouraudit. W e conducted our auditin accordance w ith auditing standardsgenerally accepted in the United States of A m erica. Th ose standards require thatw e plan and perform the auditto obtain reasonable assurance about w hetherthe generalpurpose financialstatem entsare free of m aterialm isstatem ent.an auditincludes exam ining, on a testbasis,evidence supporting the am ountsand disclosuresin the generalpurpose financialstatem ents.an auditalso includesassessing the accounting principlesused and significantestim atesm ade by the St.M artin Parish A ssessor,asw ellasevaluating the overallgeneralpurp ose financialstatem entpresenta tion.w e believe thatourauditprovidesa reasonable basisforouropinion. In ouropinion,the generalpurp ose finan cialsta tem entsreferred to above presentfairly,in allm aterial respects,the financialposition of the St.M artin Parish A ssessor,as of D ecem ber31,2002,and the results of its operationsforthe yearthen ended,in conform ity with accounting principlesgenerally accepted in the United Statesof A m erica. In accordance w ith G overnm enta uditing Sta ndards,w e have also issued a report dated M ar ch 20,2003 on ourconsideration of th e St.M artin Par ish A ssessor'sinternalcontroloverfinancialreporting and ourtestsof itscom pliance w ith certain law s,regulations,contractsand grants. Thatreport isan integralpart of an audit performed in accordancewith GovernmentAuditing Standardsand should be read inconjunctionwith thisreport in considering the results of ouraudit. 183South Beadle Road Lafayette,LA ll3ea~tbridgestmet B~auxBridge,LA Phone(337) Pax( EastW addil Marksvile,LA Phone(3~8) Fax(318) David Drive,Suite 105 M organcity,la Phooe( Fax(985) O8 W.Co.o.st+~ t viii+ Platm.LA Phone(3~7) Fax(3~7)363-3O49 332W SixthAvenue Oberlin.LA Phone(337) Fax( S~ thmain Stru t Abbe vtlle.la 7051I Phone(337) Fax(337)

4 The financialinform ation forthe preceding year,w hich isincluded forcom parative purposes,was taken from the financialreportforthatyear in w hich w e expressed an unqualified opinion on the generalpurp ose financialstatem ents of the St.M artin Parish A ssessor. K older,cham p agne,slaven & Com p any,ll C Certified Public A ccountants Breaux Bridge,Louisiana M arch 20,2003

5 G EN ERA L PURPO SE FIN AN CIA L STA TEM EN TS (COM BINED STATEM ENTS -OVERVIEW )

6 ST.M A RTIN PA RISH A SSESSO R Com bined Balance Sheet-G overnm entalfund Type and A ccountg roup D ecem ber31,2002 A ccount G overnm enta l Fund Type G eneralfund G roup G eneral Fixed A ssets Tota ls (M emorandum Only) A SSETS Cash and investm ents Receivables: A d valorem taxes A llow ance foruncollectibles A ccrued interest V ehicles,m apsand equipm ent $ 802,301 $ 434,745 (51,494) 3, ,994 $ 802,301 $ 785, , ,546 (51,494) (68,644) 3,285 5, , ,356 Tota lassets $ 1,188,837 $ 366,994 $1,555,831 $1,552,227 LIABILITIES AND FUND EQUITY A ccounts payable $ 2,202 $ $ 2,202 $ Fund equity: Investm entin generalfixed assets Fund balances - U nreserved and undesignated Tota lfund equity 1,186,635 1,186, , , ,356 1,186,635 1,180, ,994 1,553,629 1,552,227 Tota lliabilities and fu nd equity $ 1,188,837 $ 366,994 $1,555,831 $1,552,227 The accom panying notesare an integralpartof thisstatem ent. 4

7 ST.M ARTIN PARISH A SSESSOR Statem entof Revenues,Expenditures,and Changesin Fund Balance - Budget(GAAP Basis)and Actual G overnm enta lfund Type -GeneralFund YearEnded Decem ber31,2002 W ith Com parative ActualA m ountsforyearended D ecem ber31, Varian ce - Budget A ctual Favorable (Unfavorable) 2001 A ctual Revenues: Intergovernm enta lrevenues- A d valorem taxes Preparation of tax roll Sta te revenue shar ing Interest O ther 475,000 6,200 73,000 26,500 1,500 $ 469,976 6,038 73,708 24,797 1,655 $ (5,024) (162) 7O8 (1,703) 155 $ 422,337 6,519 73,488 40,228 2,121 Tota lrevenues 582, ,174 (6,026) 544,693 Expenditures: Current- Personnelservicesand related benefits Operating services M aterials and supplies Capita loutlay 458,525 72,000 46, ,589 74,001 49, ,936 (2,001) (2,475) (245) 422,587 30,262 40,700 3,128 Tota lexpenditures 577, ,410 7, ,677 Excessof revenuesover expenditures 4,575 5,764 1,189 48,016 Fund balance,beginning of year 1,180,871 1,180,871 1,132,855 Fund balance,end of year $ 1,185,446 $1,186,635 $ 1,189 $1,180,871 The accom panying notesare an integralpartof thisstatem ent. 5

8 ST.M A RTIN PA RISH A SSESSO R StatementofExpendituresCompared to Budget(GAAP Basis)- GeneralFund Year Ended D ecem ber31,2002 W ith Com par ative ActualAm ounts foryear Ended Decem ber31, Budget A ctual Variance - Favorable (Unfavorable) 2001 A~ual Current: Personnelservices and related benefits - Salaries: A ssessor Deputies Other A llowance Group insurance Pension Payrolltax W orkm an 'scom pensation insurance Defered com pensation 80, ,740 24,000 9,225 69,060 58,250 3,300 3, $ 80, ,321 25,809 8,823 67,139 56,464 3,052 3,731 33,000 $ $ 8,419 (1,809) 402 1,921 1, (31) 1,000 80, ,404 31,451 8,538 63,828 41,703 3,324 1,589 24,500 Totalpersonnelservicesand related benefits 458, ,589 11, ,587 O perating serv ices: Professionalfees 72,000 74,001 (2,001) 30,262 M aterials an d supplies: O ffice suppliesand expense Telephone Postage Dues& subscriptions Training -schoolan d tuition Equipm entm aintenan ce Uniform s Autom obile suppliesan d m aintenan ce 11,000 8,000 2,000 2,000 2,000 3, ,200 13,282 8,084 2,034 2,007 2, ,776 (2,282) (84) (34) (7) (981) (1,Ol1) 5O ,649 7,652 1,000 3, , Tota lm aterialsan d supplies 46,800 49,275 (2,475) 40,700 Capitaloutlay: Ofi ce equipment Totalcapitaloutlay (245) 3, (245) 3,128 Totalexpenditures $ 577,625 $ 570,410 $ 7,215 $ 496,677 The accom panying notesare an integralpartofthisstatem ent.

9 ST.M A RTIN PA RISH A SSESSO R N otes to Finan cialstatem ents (1) Sum m ary of Sin nificanta ccountinz Policies The accounting and reporting policiesof the A ssessorconform to generally accepted accounting principles as applicable to govern m ents. Such accounting and reporting proceduresalso conform to the industry auditguide,a uditsof State and LocalG overnm entalu nits. Th e follow ing isa sum m ary of certain significantaccounting policies: A. FinancialReoortin~,Entity For fin ancialreporting purposes,th e A ssessor includes allfunds,account groups, activities,etcetera,thatare controlled by the A ssessor asan independently elected parish ofi cial. Theactivitiesof the parish policejury,parish schoolboard,otherindependently elected parish officials, and m unicipal level govern m ent are not included w ith in the accom panying financialstatem entsasth ey are considered autonom ous govern m ents. These units of govern m entissue finaneialsta tem entssepar ate from th atof the Parish A ssessor. Th eaccountsof theassessorareorganized on the basisof a fund (GeneralFund)an d an accountgroup,each of w hich isconsidered a separate accounting entity.the operationsof th e GeneralFund,as provided by Louisiana Revised Sta tute 47:1906,ar e accounted forw ith a separate setof self-balan cing accountsth atcom prise itsassets,liabilities,fund equity,revenues an d expenditures. Com pensation received from the various taxing bodies,prescribed by form ula in Louisiana Revised Statu tes 47: ,isaccounted forin thisfund an d general operating expenditures are paid from this fund. C. Fixed A ssetsand Lon~-Term O bli~,ations Fixed as setsused in governmentalfund type operations(generalfixed assets)are ac ounted forin the generalfixed assetsaccountgroup,rath erth an in the GeneralFund.N o depreciation has been provided on fixed as sets. Fixed assetsare valued athistoricalcost. Infrastructure assets as w ellas interestcosts are notcapita lized. Th e accountgr oup isnota "fu nd".itis concerned only w ith the m easurem entof financialposition an d doesnotinvolve m easurem entof results of operations. There are no long-term obligationsatd ecem ber31,2002

10 ST.M A RTIN PARISH A SSESSO R Notesto FinancialStatements(Continued) D. Basisof A ccounting, Basisof accounting refers to when revenues and expendituresare recognized in the accounts and reported in the financialsta tem ents.basisof accounting relatesto the tim ing of the m easurem entsm ade,regardlessof the m easurem entfocusapplied. The A ssessor'srecordsare m ainta ined on a cash basisof accounting.h ow ever,the G eneralfund reported in th e accom panying financialsta tem entshasbeen converted to a m odified accrualbasis of accounting using th e follow ing practicesin recording revenues and expenditures: Revenues Com pensation from taxing bodiesand ad valorem taxesare recorded in the yearad valorem taxes are assessed. A d valorem taxes ar e assessed forthe calendaryearan d becom e payable on N ovem ber 15 of each year and due by Decem ber31 of thatyear. Interestincom e isrecorded w hen earned.a llotherrevenues ar e recorded w hen received. Expenditures Expenditures are generally recognized under the m odified accru al basis of accounting w hen th e related fund liability is incurred. Th e A ssessor prepar esa budgetfor th e GeneralFund on the m odified accru albasis of accounting. The budgetis advertised in the oficialpar ish paper,a public hearing is conducted and the budgetisadopted and filed.n oticesof availability,adoption ofbud~ t, et cetera, are published. Budget am ounts included in the accom pan ying finan cial sta tem ents include originaland/or am ended adopted budget am ounts. A llbudgeta ry appropriationslapse atth e end of each year. F. Interest-Bearing,D eoosits Interest-bearing deposits ar e sta ted atcost,w hich approxim atesm ar ket. G. V acation and Sick Leave Each em ployee isallow ed a tw o w eek vacation annually.there isno form alpolicy pertaining to sick leave;sick leave isgranted atthe discretion of the A ssessor.

11 ST.M A RTIN PA RISH A SSESSO R Notesto FinancialStatements(Continued) At the discretion of the A ssessor, em ployees m ay be paid at term ination or retirem entforvacation leave accum ulated during the currentyear.a tdecem ber31,2002, the A ssessor hasno accum ulated leave benefitsrequired to be reported in accordance w ith GA SB Codification C60. H. TotalColum n on Balance Sheet The "tota l" colum n on the balance sheet is captioned "M em oran dum O nly" to indicate thatitispresented only to facilitate financialanalysis.data in thiscolum n does notpresentfinancialposition in conform ity w ith generally accepted accounting principles. N eitheris such data com parable to a consolidation. Encum brances Encum brance accounting, under w hich purchase orders, contracts an d other com m itm ents forthe expenditure of m oniesare recorded in orderto reserve th atportion of the applicable appropriation,is notem ployed by the A ssessorasan extension of form al budgetary integration in th e funds. J. Cash Interest-Bearin~ D epositsand Investm ents Cash an d investm ents include am ounts in dem and deposits,tim e deposits,an d interest-be aring securitiesinvested with thelouisiana AssetM anagementpool(lamp) which are stated atcost.an investm entin th e am oun tof $100,636 atdecem ber31,2002 isdeposited in LAM P,a localgovernm entinvestm entpool. In accordan ce w ith G A SB Codification Section I50.165,the investm entin LAM P isnotcategorized into th e three risk categories provided by G A SB Codification Section because th e investm entis in th e poolof funds and thereby notevidenced by securitiesthatexistin physicalor book entry form.lam P isadm inistered by LAM P,Inc.,a non-profitcorporation organized underthe laws of th e State of Louisiana,and is govern ed by a board of directorscom prised of representa tivesfrom variouslocalgovernm ents and state w ide professionalorganizations. Only localgovernm ents having contracted to participate in LA M P have an investm ent interestin its poolof assets. Theprimary objective oflamp isto provide a safe environm entforthe placem entof public fu nds in short-term,high quality investm ents.the LAM P portfolio includes only securitiesan d other obligationsin w hich localgovernm ents in Louisiana ar e auth orized to invest. Accordingly,LA M P investm entsare restricted to securities issued,guaran teed,orbacked bythe U.S.Treasury,the U.S.govern m ent,orone of its agencies, enterp rises, or instrum enta lities, as w ell as repurchase agreem ents collateralized by those securities.the dollarweighted average portfolio m aturity of LAM P as setsisrestricted to notmore than 90 days,and consistsof no securitieswith a m aturity in excess of 397 days. LAM P is designed to be highly liquid to give its participants im m ediate accessto theiraccountbalances. U nderstate law,th e A ssessorm ay deposit funds in dem and deposits,interest-bearing dem and deposits,m oney m arketaccounts,or tim e depositsw ith state banksorganized underlouisiana law and nationalbanks having principalofficesin Louisiana.

12 ST.M A RTIN PA RISH A SSESSO R Notesto FinancialStatements(Continued) K. Post-Em olovm enth ealth Care Benefits A llem ployeesw ho retire from the A ssessor'sofi ce are eligible forpost-retirem ent health care benefits. The A ssessorcurrently fundsthe costsof these benefits,butth e A ssessorisnotrequired to do so.if the Assessor'sofi ce should everexperience difi culty funding these costs,this practice would be discontinued.the costs of retirees'health car e benefits are recognized as an expenditure when paid. For 2002,th ose costs totaled approxim ately $6,888. (2) Cash an d Interest-Bearing Deposits U ndersta te law,th e A ssessorm ay depositfu nds w ithin a fiscalagentbank organized under the law s of th e State of Louisian a,the law s of any othersta te in th e U nion,or th e law s of th e U nited States. The A ssessorm ay investin certificatesand tim e depositsof state ban ksorganized under Louisiana law and nationalbanks having principalofi ces in Louisiana.AtDecem ber31,2002,the Assessorhas cash and interest-bearing deposits(book balances)totaling asfollows: D em and deposits Tim e deposits Total $ 11, ,270 $ _.0] These depositsare stated atcost,which approximatesmarket.understate law,thesedeposits(or theresulting bank balances),mustbesecured by federaldepositinsuranceorthe pledge of securities owned by the fiscalagentbank. Th e m arketvalue of the pledged securities plus the federaldeposit insurance m ustatalltim esequalth e am ounton depositw ith the fiscalagentbank.these securities are held in the nam e of th e pledging fiscalagentbank in a holding orcustodialbank thatis m utually acceptableto both parties. Depositbalan ces(bank balances)atdecember31,2002,aresecured as follow s: Bank balances Federaldepositinsurance Pledged securities(category 3) Totalsecured deposits $651, ,586 $ 802,097 Pledged securities in Category 3 include uninsured orunregistered investm entsforw hich the securitiesare held by the brokerordealer,orby itstrustdepartm entoragent,butnotin the A ssessor's name. Even though the pledged securitiesare considered uncolateralized (Category 3)Louisiana Revised Statute 39:1229 im posesa statutory requirem enton the custodialbank to advertise and sellthe pledged securities w ithin 10 daysof being notified by the Assessorthatthe fiscalagenthas failed to pay deposited fu nds upon dem and. 10

13 ST.M A RTIN PARISH A SSESSOR Notesto FinancialStatements(Continued) The A ssessor had only one investm ent on w hich G A SB Sta tem ent N o.31 applied. This investm entwas an investm entin LA M P. G A SB Sta tem entn o.31requiresthatinvestm ents,thatfall w ithin the definitions of said statem ent,be recorded atfairvalue.however,statem entno.31also states that investm ents in an externalinvestm ent poolcan be reported at am ortized cost if th e extern al investm entpooloperatesin a mannerconsistentwith thesecurity Exchange Commission's(SEC's)Rule 2a7. LA M P isan externalinvestm entpoolthatoperates in a m annerconsistentw ith SEC Rule 2a7. LAM P isalso regulated by the Treasury of the State of Louisiana and fairvalue of the position in the poolisthe sam e as th e value of poolshares. AtDecem ber31,2002 the A ssessor'sinvestm ent,atcost,is$100,636.the am ortized costof this investm entatdecem ber31,2002 is$100,777.because costapproxim atesam ortized cost,the carrying value wasnotadjusted. (3) A d V alorem Taxes A d valorem taxesatach asan enforceable lien on property asof January Iof each year.d uring the currentfiscalyear,taxes w ere levied in June and billed to the taxpayers by th e St.M artinparish Sherif in N ovem ber.billed taxesare due by Decem ber3 I,becom ing delinquenton Jan uary 1of the follow ing year. A n allow ance isestablished fordelinquenttaxes to th e extentth atcollection has not occurred in the tw o m onthsfollow ing th e close of th e calendar year. The taxes are based on assessed valuesdeterm ined by the St.M artin Parish Tax A ssessorand are collected by the Sheriff.The taxesare rem itted to the Tax A ssessornetof deductionsforpension fund contributions. A d valorem taxesare budgeted and recorded in th e year levied and billed. Forth e yearended D ecem ber31,2002,specialassessm entdistrictta xesw ere levied atth e rate of 3.63 m illson property w ith assessed valuationstotaling $120,924,423. Totalspecialassessm entdistricttaxeslevied during 2002 were $438,959. Taxesreceivable at Decem ber31,2002,was$434,745 and the allowance foruncollectible receivableswas$51,494.

14 ST.M A RTIN PA RISH A SSESSO R Notesto FinancialStatements(Continued) (4) Changesin GeneralFixed Assets A sum m ary of changesin generalfixed assets follow s Balance at January 1, 2002 A dditions D eletions Balance at Decem ber31, 2002 M aps O fi ce equipm ent Com puterequipm ent V ehicles $ 283,250 32,155 3,971 51, $ - (4,907) $ 283,250 27,793 3, Totalgeneral fixed assets $ $ 545 $(4.907) $ (5) Pension Plan Plan D escription: The St.M artin Parish A ssessor contributes to the Louisiana A ssessors' Retirem entfund,a cost-sharing m ultiple em ployerdefined benefitpension plan adm inistered by a separate board of trustees.provisionsof the plan are setforth in the Louisiana Revised Statutes11:1401 through 11:1483 to provide retirem ent,disability and survivor benefits for th e assessors an d th eir perm anent,full-tim e em ployees. The Board of Trustees of the Louisian a Assessors'Retirem entfund issues a publicly available financial report that includes finan cial statem ents and required supplem entary inform ation.thatreportm ay be obtained by writing to the Board of Trustees,Louisian a A ssessors'retirem entfund,p.o.box 14699,Baton Rouge,Louisian a, Funding Policy: D uring the m onths of Jan uary th rough Septem ber2002,plan m em bers w ere required to contribute 8 percentof theirannualcovered salary and th e assessor w asrequired to m ake contributions of percentof the salaries. In October2002 the assessor'srequired contribution increased to 14 percent.in addition,the System receives one forth of one percentof th e taxes show n to be collected on the tax rolls of each par ish and revenue sharing fundsasappropriated each year by legislature.the em ployer'snetactuar ially required contribution forth e year ended Septem ber30,2002 w as percentof covered payroll.th e St.M artin Parish A ssessor's contributionsto the Retirem ent System forthe yearsended Decem ber3 I,2002,2001and 2000 were $56,464,$41,703,and $34,495 respectively. 12

15 ST.M A RTIN PA RISH A SSESSO R Notesto FinancialStatements(Continued) (6) Operating LeaseCommitments The Assessorisobligated underan operating lease agreem entfora Xerox copier.th e initialleas e on the copierwas for an initialterm of three years beginning Decem ber,1999 w ith m onth ly paym ents of $175.Thislease was replaced with a new lease foran additionalthree yearterm beginning in July 2002 w ith m onthly paym entsof $176.Th e lease paym entsforthe rem aining yearsare asfollow s: $ 2,112 2,112 1,232 $ 5~456 (7) Litigation Th e A ssessor'soffice has been nam ed in one law suit. M anagem entand legalcounselforthe A ssessorar e of the opinion thatthislaw suitw illnotresultin any significantm onetary losses.therefore, there hasbeen no accrualon the balance sheetatd ecem ber 31,2002. (8) Risk M anagement The A ssessorisexposed to risksof loss in the areasof generaland auto liability and w orkers' com pensation. Th ose risks are handled by purchasing com m ercialinsurance. Th ere have been no significantreductions in insuran ce coverage during the currentyear. (9) Expendituresof theassessorpaid by the Parish Government The A ssessorsoffice islocated in the St.M artin Parish Courthouse.Th e upkeep and m aintenan ce of the courthouse ispaid by the St.M artin Par ish G overn m ent.in addition,the Parish Governm entalso pays som e of th e Assessor's operating expenditures. Th ese expenditu res are notreflected in the accom pan ying finan cialsta tem ents. 13

16 ST.M AR TIN PA RISH A SSESSO R Notesto FinancialStatements(Continued) (10) D eferred Com oensation Plan The A ssessoroffers itsem ployeesa deferred com pensation plan created in accordance w ith InternalRevenue Code(IRC)Section 457.Theplan,available to allassessoremployees,permitsthem to defera portion of theirsalary untilfuture years. The deferred com pensation isnotavailable to em ployeesuntilterm ination,retirem ent,death,orunforeseeable em ergency. A llam ounts of com pensation deferred underthe plan,allproperty an d rights purchased w ith those amounts,and allincomeatributableto those amounts,property,orrightsare (untilpaid ormade available to the employeeorotherbeneficiary)held in a trust,custodialaccountorannuity contractby theassessordescribed in IRC 457(g)forthe exclusive benefitof theparticipants and theirbeneficiaries. (11) New Reporting Standard In June 1999,the GovernmentalAccounting StandardsBoard (GASB)issued Statement34 "Basic Finan cial Statem ents and M anagem ent's D iscussion and A nalysis for State and Local G overnm ents." This Sta tem entestablishes new finan cialreporting requirem ents for state and local govern m ents throughoutthe United States. W hen im plem ented,itw illrequire new inform ation and restructure m uch of the inform ation thatgovern m entshave presented in the past. Com par ability w ith reports issued in allprioryears w illbe affected. The St.M artin Parish Assessor isrequired to im plem entthis standard for the fiscalyearending D ecem ber 31,2004. The A ssessorhas notyet determ ined the fullim pactthatadoption of G A SB Sta tem ent34 w illhave on the finan cialsta tem ents. 4

17 INTERNAL CO NTR O L AND C O M PLIA N CE 15

18 c.bur~ KC~der,CPA" RusselF Cnambe gne,cpa" Vie(ofR Slaven,CPA" Conrad O Chapman,CPA" l:tt~oycouwlfle,cpa" Ge{ald A Thibobe aux,jr,cpa AlenJ La~ tcpa HamyJ Ck~sUO,CPA Penny Ange~le Scruggins.CPA Chnst~neL Cousin,CPA Man/T TPabodeaux,CPA Kely M Doucet,CPA Kenneth 3 RachaLCPA Cbe ~ L Barfley,CPA RobertS Carter.CPA KO LD ER,C H A M PA G N E,SLAV EN & C O M PA NY,LLC CERTIFIED PUBLIC ACCOUNTANTS EO.Box 250 BreauxBridge,LA Phone(337) Fax(337) REPORT ON COM PLIAN CE AN D "'~"~'~'~ '~ ~ '~ ON IN TERN AL CON TRO L OV ER FIN AN CIA L RE PO RTIN G BA SED ON AN A U D IT O F FIN AN CIA L STA TEM EN TS PERFO RM ED IN A CCO RDAN CE W ITH G OVERN M EN T AUDITIN G STAN DAR D S W EB SITE: W W W.KCSRCPAB CON MEMBER OF: AMERICAN INSTfUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOCETY OFLOUISIANA C ERTIEED PUBLIC ACCOUNTANTS The Honorable Law rence Patin St.M artin Parish A ssessor W e have audited the generalpurpose financialstatem entsof the St.M artin Parish A ssessor as of and for the yearended D ecem ber31,2002,and have issued ourreport thereon dated M arch 20,2003.W e conducted our auditin accordance w ith auditing standardsgenerally accepted in the U nited Statesof A m erica and th e sta ndards applicable to financialauditscontained ingovernm enta uditing Standards,issued by the Com ptrollergeneralof the U nited Sta tes. Com pliance A s part of obtaining reasonable assurance aboutw hetherth e St.M artin Parish Assessor's generalpurp ose financialstatem ents are free of m aterialm isstatem ent,we perform ed tests of its com pliance with certain provisions of law s,regulations,contracts and grants, noncom pliance w ith w hich could have a directand m aterial effecton the determ ination of financialsta tem entam ounts.h ow ever, providing an opinion on com plian ce w ith thoseprovisionswasnotan objective ofourauditand,accordingly,wedo notexpresssuch an opinion.th e resultsof ourtestsdisclosed no instancesof noncom pliance thatare required to be reported underg ovem m ent A uditing Standards. InternalControlO verfinancialrenortin~, In planning and perform ing ouraudit,w e considered the St.M artin Parish Assessor'sinternalcontrolover finan cialreporting in orderto determ ine ourauditing proceduresforthe purp ose of expressing ouropinion on the generalpurp ose financialsta tem entsand notto provide assurance on the intern alcontroloverfinan cialreporting. H ow ever,w e noted a certain m atterinvolving the intern alcontroloverfinancialreporting and itsoperation that w e considerto be a reportable condition.reportable conditionsinvolve m atterscom ing to ouratention relating to significantdeficiencies in the design oroperation of the intern alcontroloverfinancialreporting that,in our judgment,could adversely affectthe St.M artin Parish Assessor'sabilityto record,process,summarizeand report financialdata consistentw ith the assertionsof m anagem entin the generalpurpose financialsta tem ents. The reportable condition noted isdescribed in the accom panying schedule of prior an d currentauditfindingsand m anagem ent'scorrective action plan asitem Lafayene,LA Phone(337) I13EastBridge Stree{ BreauxB ridge,i.a Phone(337) Fax (337) EastW addd M arksvdle.la Phone(318) Fax(318) David [)rive.suite 105 MorganCity. LA Phone(985) Fax(985) W Col(onSIr(~l ViI)e P~aue,LA Phone(337) Fax(337)363-30A9 332W.Sixth Avenue Oberl,n,LA Phone(337) Fax1337) S~ th M ainslrccl Abbcville.LA 705][ phone(337)8937%~j Fax(337)

19 A m aterialw eakness isa condition in w hich the design oroperation of one orm ore of the internalcontrol com ponentsdoesnotreduce to a relatively low levelthe risk thatm isstatements in amountshatwould be m aterial in relation to the financialstatem entsbeing audited may occurand notbe detected within a tim ely period by em ployeesin the norm alcourse of perform ing th eirassigned functions.o urconsideration of the internalcontrol overfinancialreporting would notnecessarily disclose allm atersin the internalcontrolthatm ightbe reportable conditionsand,accordingly,would notnecessarily disclose allreportable conditions thatare also considered to be m aterialweaknesses.however,w ebelieve the reportable condition identified asitem 02-1in the schedule of prior and currentauditfindingsand m anagem ent'scorective action plan isa m aterialw eakness. This reportisintended forthe inform ation and use of m anagem entand othersw ithin th e organization an d is notintended to be and should notbe used by anyone oth erth an th ese specified parties. K older,cham p agne,slaven & C om p any,ll C Certified Public Accountants Breaux Bridge,Louisiana M ar ch 20,2003

20 ST.M A RTIN PA RISH A SSESSO R Schedule of Priorand CurrentA uditfindingsand M anagem ent's Corrective A ction Plan Y earended D ecem ber31,2002 PriorY earfindings Com pliance There w ere no findings thatw ere required to be reported underthe above. InternalControlO verfinancialreoortim, Item 01-1-Inadecluate Segregation of A ccounting Functions Finding: Due to the sm allnum berof em ployees,th e A ssessor did nothave adequate segregation of functionsw ithin th e accounting system. Status: U nresolved. See item 02-1 M an a~,em entletteritem s There w ere no m anagem entleteritem satd ecem ber31,2001 (continued) 18

21 ST.M A RTIN PA RISH A SSESSO R Schedule of Priorand CurrentA uditfindingsand M anagement'scorrective ActionPlan (Continued) Y earended D ecem ber31,2002 1I. CurrentY earfindingsand M ana~em ent'scorrective A ction Plan: Com pliance There are no findings thatar e required to be reported underthe above InternalControlO verfinancialrenortin~ Item 02-1-Inadequate Se~re~zation of A ccountin~ Functions Finding: Due to the sm allnumberof employees,the Assessordid nothave adequate segregation of functionsw ithin the accounting system. M anagem ent'scorrective A ction Plan Law rence L.Patin,A ssessor,has determ ined thatitisnotcosteffective to achieve com plete segregation of duties w ith in th e accounting departm ent.n o plan isconsidered necessary. M anagem entleteritem s There are no m anagem entleteritem satd ecem ber31,