CONCORDIA PARISH SHERIFF Vidalia, Louisiana

Transcription

1 LEGiSLAFiVE AUDITOR 2007FEB2I AMIh I6 Vidalia, Louisiana Annual Financial Statements and Independent Auditors' Report as of June 30,2006 with Supplemental Information Schedules Under provisions of state law, this report is a public document. A copy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court. Release Date

2 VIDALIA, LOUISIANA TABLE OF CONTENTS Statement Page Management Discussion & Analysis (MD&A) 1-6 Independent Auditors' Report 7-8 Government-Wide Financial Statements (GWFS) 9 Statement of Net Assets A 10 Statement of Activities B 11 Fund Financial Statements (FSS) 12 Balance Sheet - Governmental Fund C 13 Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net Assets D 14 Statement of Revenues, Expenditures and Changes in Fund Balance E Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of the Governmental Fund to the Statement of Activities F 17 Statement of Fiduciary Assets and Liabilities G 18 Notes to the Financial Statements Required Supplementary Information 29 Budgetary Comparison Schedule - Governmental Fund 30 Note to Budgetary Comparison Schedule 31 Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Schedule of Findings and Questioned Costs 34 Schedule of Findings and Questioned Costs 3 5 Summary of Schedule of Prior Audit Findings 36

3 VIDALIA, LOUISIANA TABLE OF CONTENTS Single Audit Act Reports 37 Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A Schedule of Expenditures of Federal Awards 40 Schedule of Findings and Questioned Costs - Single Audit 41 Page

4 VIDALIA, LOUISIANA MANAGEMENT DISCUSSION & ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2006 INTRODUCTION The discussion and analysis (MD&A) of the Concordia Parish Sheriffs financial performance provides an overall narrative review of the Sheriffs financial activities for the year ended June 30, The intent of this discussion and analysis is to look at the Sheriffs performance as a whole; readers should also review the notes to the basic financial statements and the financial statements to enhance their understanding of the Sheriffs financial performance. This discussion and analysis is a new element of required supplementary information specified in the "Governmental Accounting Standards Board's (GASB) Statement No Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments" issued June Certain comparative information between the current year and the prior year is required to be presented. The Concordia Parish Sheriffs office is located on Carter Street in Vidalia, Louisiana, with outlying facilities located in all parts of Concordia Parish. FINANCIAL HIGHLIGHTS The financial statements included in this report provide insight into the financial status for the year. Based upon the operations of the two years ended June 30, 2006, the Concordia Parish Sheriffs net assets increased by $115,023 in 2005 and decreased by $470,626 in This resulted in ending net assets of $10,507,962 in 2005 and $10,037,336 in The beginning cash balance for the Concordia Parish Sheriff was $6,617,995 as of June 30, The ending cash balance at June 30, 2005 was $5,463,827 and it was $5,220,710 at June 30, The Sheriff had $11,068,186 in revenues for the year ended June 30, 2005 and $10,594,408 for the year ended June 30, 2006, which primarily consisted of property taxes, grants, prisoner upkeep and interest income. There was $10,953,163 in expenditures including depreciation of $318,494 for the year ended June 30, 2005 and $11,065,034 in expenditures including depreciation of $392,970 for the year ended June 30, OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the Concordia Parish Sheriffs basic financial statements. The Sheriffs basic financial statements comprise two components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. Governmental-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the Sheriffs finances, in a manner similar to a private-sector business. The statement of net assets presents information on all of the Sheriffs assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the town is improving or deteriorating. -1-

5 VIDALIA, LOUISIANA MANAGEMENT DISCUSSION & ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2006 The statement of activities presents information showing how the Sheriffs net assets changed during the most recent fiscal year. The government-wide financial statements outline functions of the Sheriff that are principally supported by property taxes and intergovernmental revenues (governmental activities). Fixed assets and related debt is also supported by taxes and intergovernmental revenues. The government-wide financial statements can be found on pages of this report. Fund financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the Sheriffs finances, in a manner similar to a private-sector business. The statement of net assets presents information on all of the Sheriffs assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Sheriff is improving or deteriorating. The statement of revenues, expenses and changes in net assets presents information showing how the Sheriffs net assets changed during the most recent fiscal year. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the fund financial statements. The notes to the financial statements can be found on pages 19 to 28 of this report. FUND FINANCIAL ANALYSIS Net assets may serve as a useful indicator of a government's financial position. In the case of the Sheriffs, assets exceeded liabilities by $ 10,037,336 as of June 30, Net Assets for the period ending June 30,2006 The last two year's financial statements are dramatically different from past years as a result of implementing GASB 34. We present comparative data for the two years ended June 30, 2006, which are the two years that GASB 34 has been implemented by the Sheriffs office. The following is a condensed statement of the Concordia Parish Sheriffs net assets as of June 30, 2006 and 2005: -2-

6 VIDALIA, LOUISIANA MANAGEMENT DISCUSSION & ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2006 Current Assets Restricted Assets Noncurrent Assets - Capital Assets Total Assets Year Ended June 30, 2006 $ 6,159,199 $ 5, ,186, ,203, ,250 5,256,285 11,666,783 Current Liabilities Long-term Liabilities Total Liabilities 1,149,267 1,149, , ,967 1,158,821 Net Assets Investment in capital assets, net of related debt Restricted for debt service Unrestricted Total Net Assets 5,027,404 5,009,932 $ 10,037,336 4,684, ,250 5,616,466 $ 10,507,962 A large portion of the Sheriffs net assets ($5,027,404 or 50%) is its investment in capital assets such as equipment and facilities less related debt expended in the acquisition of those assets. Some of the net assets ($207,250 or 2%) were restricted to fund debt service in the event that current operations could do so, but were released when the related debt was repaid in full. The remaining balance of the net assets ($5,009,932 or 50%) may be used to pay current operating expenses. The Sheriff had long-term debt of $ 817,333 at June 30, 2005, of which $591,222 is for the note used to build the corrections facility in prior years. More information concerning this debt may be found on pages of the notes to the financial statements. Total liabilities of $1,149,267 are equal to 11% of the total assets of the Sheriff. The following is a summary of the statement of activities: -3-

7 VIDALIA, LOUISIANA MANAGEMENT DISCUSSION & ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2006 Revenues: Charges for services Public Safety Corrections Mowing General revenues Ad valorem taxes State supplemental pay State revenue sharing Interest Other Grants Total revenues and transfers Year Ended June 30, $ 307,527 6,528, ,036 2,033, , , , , ,595 10,594,408 $ 202,243 6,236, ,419 2,013, , , , ,493 1,495,528 11,068,186 Expenses: Operating expenses Public safety Corrections Mowing Interest expenses Total expenses 4,193,689 6,755, ,493 14,138 11,065,034 3,882,127 6,954,512 84,912 31,612 10,953,163 Increase in net assets $ (470,626) $ 115,023 Net assets July 1 Net assets June 30 10,507,962 10,392,939 $ 10,037,336 $ 10,507,962 Governmental Type Activities The Governmental-Type Activities of the Sheriff include revenues resulting from fines and fees charged, fees charged for the care and feeding of prisoners and contract fees for mowing and upkeep activities. It also includes grants for law enforcement activities and prisoner functions. The following presents in graphs the information from the Statement of Activities for the Governmental-Type Activities: -4-

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9 VIDALIA, LOUISIANA MANAGEMENT DISCUSSION & ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2006 As of June 30, 2005, the Sheriff had outstanding bonded indebtedness of $572,039. Principal payments of $382,072 were due to be paid during this fiscal year. This debt consisted of one issue which is secured by the correctional facility on Highway 15. This debt was scheduled to be paid in full in the year ended June 30, 2007, but was paid off early in May, BUDGET AMENDMENTS Amendments to the budget for revenues resulted from a change in revenues and expenditures from the amounts estimated at the beginning of the year. MANAGEMENT'S COMMENTS The Sheriffs office was heavily involved in assistance to those affected by Hurricane Katrina in August of At the request of the State of Louisiana, officers were dispatched to remove prisoners being held in the New Orleans area and transport those prisoners, both to Concordia Parish facilities and other locations. Additional staff had to be activated to help care for the overload of prisoners being held here. Also, many evacuees were housed here at the Correctional Facility for an extended period of time. There was also provision for assistance to law enforcement in St. Bernard and Plaquemines parishes immediately after the storm. All of the expenses for this project are included in the financial statements. The revenues are being billed for all the Louisiana Sheriffs who provided men and equipment as one billing. We expect to receive these revenues in This revenue is not included in accounts receivable or revenues for the year ended June 30, 2006 since it was not received within 60 days as explained in notes to the financial statements on page 20. The Sheriff expects to have a claim from FEMA for approximately $180,000 related to Hurricane Katrina. Also as a consequence of the expense of recovery from Katrina, certain state contracts for services were discontinued unexpectedly during the fiscal year presented here. These contracts have been renewed in the new fiscal period. It was found that funds were available to be able to pay off the debt connected with the construction of the Correctional Facility here in Concordia Parish. The Sheriffs office can now operate the facility more effectively, continuing to provide jobs to parish residents and maintain a facility owned completely by the residents of Concordia Parish. Through effective management and technology improvements, property tax collections have improved and more funds have been able to be collected and remitted to the various government offices around the parish. REQUEST FOR INFORMATION This financial report is designed to provide citizens, taxpayers, customers and creditors with a general overview of the Sheriffs finances and to show the Sheriffs accountability for the money it receives. Any questions about this report or request for additional information may be directed to Sandy Burget, Administrative Supervisor at (318)

10 SWITZER, HOPKINS & MANGE Certified Public Accountants POST OFFICE BOX 478 FERRIDAY, LOUISIANA DENNIS R. SWITZER, CPA H. MYLES HOPKINS, CPA SUSAN L. MANGE, CPA JOHN M. JONES, CPA NORTH E.E. WALLACE BLVD. FERRIDAX LOUISIANA TELEPHONE (318) FAX (318) OFFICES IN NATCHEZ, MISSISSIPPI INDEPENDENT AUDITORS' REPORT Honorable Randy J. Maxwell Concordia Parish Sheriff Vidalia, Louisiana We have audited the accompanying financial statements of the governmental activities, each major ftmd and the aggregate remaining fund information of the Concordia Parish Sheriff as of and for the year ended June 30, 2006, which collectively comprise the Sheriffs basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Sheriff. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. hi our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Concordia Parish Sheriff as of June 30, 2006, and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America. hi accordance with Government Auditing Standards, we have also issued our report dated January 22, 2007 on our consideration of the Concordia Parish Sheriffs internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. -7-

11 Honorable Randy J. Maxwell Concordia Parish Sheriff Page Two The management's discussion and analysis and budgetary comparison information on Page 3 through 6 and Page 32 are not a required part of the financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Concordia Parish Sheriffs basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, and is not a required part of the basic financial statements of the Concordia Parish Sheriff. The schedule of expenditures of federal awards have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. Ferriday, Louisiana January 22, 2007 * -8-

12 GOVERNMENT - WIDE FINANCIAL STATEMENTS (GWFS) -9-

13 GOVERNMENT-WIDE FINANCIAL STATEMENTS STATEMENT OF NET ASSETS JUNE 30, 2006 Statement A ASSETS Cash and Cash Equivalents $ 5,220,710 Accounts Receivable 121,501 Accrued Interest Receivable 10,734 Due from Other Governmental Units 769,575 Commodities Inventory 12,580 Prepaid Expenses 24,099 Capital assets - net 5,027,404 Total Assets $ 11,186,603 LIABILITIES Accounts and Other Accrued Payables 628,579 Payroll and Related Liabilities 175,800 Long-term liabilities: Due within one year 344,888 Total Liabilities 1,149,267 NET ASSETS Invested in Capital Assets 5,027,404 Unrestricted 5,009,932 Total Net Assets $ 10,037,336 The accompanying notes are an integral part of the basic financial statements. -10-

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15 FUND FINANCIAL STATEMENTS (FSS) -12-

16 BALANCE SHEET - GOVERNMENTAL FUND JUNE 30, 2006 Statement C ASSETS Cash and Cash Equivalents $ 5,220,710 Accounts Receivable 121,501 Accrued Interest Receivable 10,734 Due from Other Governmental Units 769,575 Commodities Inventory 12,5 80 Prepaid Expenses 24,099 Total Assets $ 6,159,199 LIABILITIES Accounts and Other Accrued Payables 628,579 Payroll and Related Liabilities 175,800 Total Liabilities 804,379 FUND BALANCE Unrestricted 5,354,820 Total Assets and Fund Balance $ 6,159,199 The accompanying notes are an integral part of the basic financial statements. -13-

17 RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET TO THE STATEMENT OF NET ASSETS JUNE 30, 2006 Statement D Total Fund Balances for Governmental Funds (Statement C) $ 5,354,820 Total Net Assets reported for governmental activities in the statement of net assets is different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of: Land 87,500 Building improvements, net of $1,008,207 accumulated depreciation 3,911,352 Automobiles and equipment, net of $1,170,461 accumulated depreciation 1,028,552 Total Capital Assets 5,027,404 Long-term liabilities, including compensated absences are not due and payable in the current period and therefore, are not reported in the governmental funds. Accrued compensated absences 344,888 Net Assets of Governmental Activities at June 30, 2006 (Statement A) $ 10,037,336 The accompanying notes are an integral part of the basic financial statements. -14-

18 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUND FOR THE YEAR ENDED JUNE 30, 2006 Statement E REVENUES Ad valorem taxes $ 2,033,216 Intergovernmental revenues Federal funds: Grants: Correctional 439,820 Public safety 94,931 State funds: State revenue sharing 129,190 State supplemental pay 141,321 State grants: Correctional 36,000 Public safety 100,844 Mowing contract 381,036 Miscellaneous 223,120 Fees, charges and commissions: Hydro patrol and disasters 39,742 Sheriffs sales 27,029 Fines and forfeitures 40,646 Civil and criminal fees 54,785 Feeding and keeping prisoners-jail 68,422 Feeding and keeping prisoners-cpcf 6,131,010 Telephone commissions 218,816 Commissary sales 25 5,990 Interest income 178,490 Total revenues 10,594,408 EXPENDITURES Public safety Personal services and related benefits 3,083,220 Operating services 727,791 Materials and supplies 16,686 Travel and other charges 76,932 Capital outlay 117,757 Total public safety 4,022,386 The accompanying notes are an integral part of the basic financial statements. -15-

19 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUND FOR THE YEAR ENDED JUNE 30, 2006 Statement E Correctional facility: Personal services and related benefits $ 5,243,945 Operating services 1,195,332 Materials and supplies 132,880 Capital outlay 48,295 Debt service: Principal paid 572,039 Interest paid 14,138 Total correctional facility 7,206,629 Grass mowing contract: Operating services 34,721 Materials and supplies 44,861 Total grass mowing contract 79,582 Total expenditures 11,308,597 (DEFICIENCY) OF REVENUES OVER EXPENDITURES (714,189) FUND BALANCE AT BEGINNING OF YEAR 6,069,010 FUND BALANCE AT END OF YEAR $ 5,354,821 The accompanying notes are an integral part of the basic financial statements. -16-

20 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE OF THE GOVERNMENTAL FUND TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2006 Statement F Net change in Fund Balance at June 30, 2006 per Statement of Revenues, Expenditures and Changes in Fund Balance (Statement E) $(714,190) The change in Net Assets reported for Governmental Activities in the Statement of Activities is different because: Principal payments on loans 572,039 Governmental Funds report Capital Outlays as expenditures. However, in the Statement of activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital Outlay which is considered an expenditure in Statement of Revenues, Expenditures and Changes in Fund Balance 166,052 Depreciation Expense (392,970) Expenditures in Statement of Activities that do not involve current financial resources: Book value of equipment abandoned (1,963) Accrued compensation absences (99,594) Changes in Net Assets at June 30, 2006 per Statement of Activities (Statement B) $ (470,626) The accompanying notes are an integral part of the basic financial statements. -17-

21 STATEMENT OF FIDUCIARY NET ASSETS JUNE 30, 2006 Statement G ASSETS Cash and cash equivalents Accounts receivable TOTAL ASSETS SHERIFFS FUNDS $ 82,859 68,296 TAX COLLECTOR FUND $ 79,164 11,628 INMATE FUND $ 237,022 1,798 TOTAL $ 399,045 81, ,155 90, , ,767 LIABILITIES Due to taxing bodies and others $ 151,155 $ 90,792 $ 238,820 $ 480,767 The accompanying notes are an integral part of the basic financial statements. -18-

22 VIDALIA, LOUISIANA NOTES TO THE FINANCIAL STATEMENTS AS OF AND FOR THE YEAR JUNE 30, 2006 INTRODUCTION As provided by Article V, Section 27 of the Louisiana Constitution of 1974, the Sheriff serves a four-year term as the chief executive office of the law enforcement district and ex-officio tax collector of the parish. The sheriff administers the parish jail system and exercises duties required by the parish court system, such as providing bailiffs, executing orders of the court, and serving subpoenas. As the chief law enforcement officer of the parish, the Sheriff has the responsibility for enforcing state and local laws and ordinances within the territorial boundaries of the parish. The Sheriff provides protection to the residents of the parish through on-site patrols and investigations and serves the residents of the parish through the establishment of neighborhood watch programs, anti-drug abuse programs, et cetera. In addition, when requested, the sheriff provides assistance to other law enforcement agencies within the parish. As the ex-officio tax collector of the parish, the Sheriff is responsible for collecting and distributing ad valorem property taxes, state revenue sharing funds, fines, costs and bond forfeitures imposed by the district court. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. BASIS OF PRESENTATION The accompanying basic financial statements of the Concordia Parish Sheriff have been prepared in conformity with governmental accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board (GASB) is the accepted standards setting body for establishing governmental accounting and financial reporting principles. The accompanying basic financial statements have been prepared in conformity with GASB Statement 34, "Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments," issued in June B. REPORTING ENTITY The Sheriff is an independently elected official; however the Sheriff is fiscally dependent on the Concordia Parish Police Jury. The Police Jury maintains and operates the parish courthouse in which the sheriffs office is located and provides funds for equipment and furniture of the Sheriffs office. Because the Sheriff is fiscally dependent on the Police Jury, the Sheriff was determined to be a component unit of the Concordia Parish Police Jury, the financial reporting entity. The accompanying financial statements present information only on the funds maintained by the sheriff and do not present information on the police jury, the general government services provided by that governmental unit, or the other governmental units that comprise the financial reporting entity. C. FUND ACCOUNTING The Sheriff uses funds to maintain its financial records during the year. Fund accounting is designed to demonstrate legal compliance and to aid management by segregating transactions related to certain sheriff functions and activities. A fund is defined as a separate fiscal and accounting entity with a self-balancing set of accounts. -19-

23 VDDALIA, LOUISIANA NOTES TO THE FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2006 Governmental Funds Governmental funds account for all or most of the sheriffs general activities. These funds focus on the sources, uses and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may be used. Current liabilities are assigned to the fund from which they will be paid. The difference between a governmental fund's assets and liabilities is reported as fund balance. In general, fund balance represents the accumulated expendable resources which may be used to finance future period programs or operations of the sheriff. The following is the sheriffs governmental fund: General Fund - the primary operating fund of the sheriff and it accounts for all financial resources, except those required to be accounted for in other funds. The General Fund is available for any purpose provided it is expended or transferred in accordance with state and federal laws and according to sheriff policy. Fiduciary Funds Fiduciary fund reporting focuses on net assets and changes in net assets. The only funds accounted for in this category by the sheriff are agency funds. The agency funds account for assets held by the sheriff as an agent for various taxing bodies (tax collections), for deposits held pending court action and deposits held for inmates. These funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Consequently, the agency funds have no measurement focus, but use the modified accrual basis of accounting. D. MEASUREMENT FOCUS/BASIS OF ACCOUNTING Fund Financial Statements (FFS) The amounts reflected in the General Fund, of Statements C and D, are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. The statement of revenues, expenditures, and changes in fund balances reports on the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approach is then reconciled, through adjustment, to a government-wide view of sheriff operations. The amounts reflected in the General Fund, of Statements C and D, use the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The sheriff considers all revenues available if they are collected within 60 days after the fiscal year end. Expenditures are recorded when the related fund liability is incurred, except for interest and principal payments on general long-term debt which is recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. The governmental funds use the following practices in recording revenues and expenditures: -20-

24 VIDALIA, LOUISIANA NOTES TO THE FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2006 Revenues Ad valorem taxes and the related state revenue sharing are recorded in the year taxes are due and payable. Ad valorem taxes are assessed on a calendar year basis, become due on November 15 of each year, and become delinquent on December 31. The taxes are generally collected in December^ January and February of the fiscal year. Intergovernmental revenues and fees, charges and commissions for services are recorded when the sheriff is entitled to the funds. Interest on interest-bearing deposits is recorded or accrued as revenues when earned. Substantially all other revenues are recorded when received. Expenditures In the government-wide financial statements, expenses are classified by function. In the fund financial statements, expenditures are classified by character and function. Government-Wide Financial Statements (G\VFS) The Statement of Net Assets (Statement A) and the Statement of Activities (Statement B) display information about the sheriff as a whole. These statements include all the financial activities of the sheriff. Information contained in these columns reflect the economic resources measurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange or exchange-like transactions are recognized when the exchange occurs (regardless of when cash is received or disbursed). Revenues, expenses, gains, losses, assets and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions. Program Revenues - Program revenues included in the Statement of Activities (Statement B) are derived directly from sheriff users as a fee for services; program revenues reduce the cost of the function to be financed from the sheriffs general revenues. D. BUDGETS The Sheriff uses the following budget practices: 1. The Sheriff prepares a proposed budget for the general fund in June of each year for the year beginning July A summary of the proposed budget is published and the public notified that the proposed budget is available for public inspection. At the same time, a public hearing is called. 3. A public hearing is held on the proposed budget at least ten days after publication of the call for the hearing. -21-

25 VIDALIA, LOUISIANA NOTES TO THE FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, After the holding of the public hearing and completion of all action necessary to finalize and implement the budget, the budget is adopted by the Sheriff. 5. All budgetary appropriations lapse at the end of each fiscal year. 6. Budgets are adopted on an accrual basis. 7. There was one amendment to the budget during the year ended June 30, F. CASH AND CASH EQUIVALENTS Cash includes amounts in demand deposits, interest-bearing demand deposits and time deposits. Under state law, the Sheriff may deposit funds in demand deposits, interest-bearing demand deposits, or time deposits with state banks organized under Louisiana law or any other state of the United States, or under the laws of the United States. G. INVENTORIES Inventory of the Sheriffs General fund consists of food purchased by the Sheriff and commodities granted by various governmental agencies. The commodities are recorded as revenues when received; however, all inventory items are recorded as expenses when consumed. All purchased inventory items are stated at cost, which is determined by the first-in, first-out method. H. PREPAID ITEMS Certain payments for insurance reflect cost applicable to Mure accounting periods and are recorded as prepaid items in both government wide and fund financial statements. L CAPITAL ASSETS Capital assets, which include land, buildings, furniture, fixtures and equipment and vehicles, are reported in the statement of net assets. Capital assets are capitalized at historical cost or estimated cost if historical is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The Sheriff maintains a threshold level of $500 or more for capitalizing capital assets. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation reflected in the statement of net assets. Depreciation is provided over the assets' estimate useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows: Vehicles Buildings Furniture, fixtures and equipment 5-10 years years 5-20 years In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. -22-

26 VIDALIA, LOUISIANA NOTES TO THE FINANCIAL STATEMENTS AS OF AND FOR THE YEAR JUNE 30, 2006 J. COMPENATED ABSENCES The Sheriff has the following policy relating to vacation and sick leave: After one year of service, employees of the Sheriffs office receive five working days of noncumulative vacation leave. For each year thereafter, they receive a total of ten working days of noncumulative vacation leave. Employees receive the same number of cumulative sick leave days, which are not payable upon termination or retirement. The sheriffs recognition and measurement criteria for compensated absences follows: GASB Statement No. 16 provides that vacation leave and other compensated absences with similar characteristics should be accrued as a liability as the benefits are earned by the employees if both of the following conditions are met: a. The employees' rights to receive compensation are attributable to services already rendered. b. It is probable that the employer will compensate the employees for the benefits through paid time off or some other means, such as cash payments at termination or retirement. GASB Statement No. 16 provides that a liability for sick leave should be accrued using one of the following termination approaches: a. An accrual for earned sick leave should be made only to the extent it is probable that the benefits will result in termination payments, rather than be taken as absences due to illness or other contingencies, such as medical appointments and funerals. b. Alternatively, a governmental entity should estimate its accrued sick leave liability based on the sick leave accumulated at the balance sheet date by those employees who currently are eligible to receive termination payments as well as other employees who are expected to become eligible in the future to receive such payments. The current portion of the liability for compensated absences should be reported in the fund financial statements. The current portion is the amount left unpaid at the end of the reporting period that normally would be liquidated with expendable available financial resources. The remainder of the liability is adjusted into the entity-wide on Statements A and B. S. ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenditures, and expenses during the reporting period. Actual results could differ from those estimates. -23-

27 VIDALIA, LOUISIANA NOTES TO THE FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2006 NOTE 2 - EXCESS OF EXPENDITURES OVER APPROPRIATIONS The Sheriff has actual expenditures over budged appropriations as follows: Original Final Unfavorable Budget Budget Actual Variance General Fund $ 11,295,218 $ 11,277,997 $ 11,308,595 $ (30,601) NOTE 3 - LEVIED TAXES The Sheriff is the ex-officio tax collector of the parish and is responsible for the collection and distribution of ad valorem taxes. Ad valorem taxes attach as an enforceable lien on property as of January 1 of the following year. The taxes are based on assessed values determined by the Concordia Parish Tax Assessor and are collected by the Sheriff. The taxes are remitted to the appropriate taxing bodies net of deduction for assessor's compensation and pension fund contributions. The following is a summary of Concordia Parish levied ad valorem taxes for 2006: DESCRIPTION Parish Tax: General Alimony Tax Library Highway, Drainage and Building Upkeep Health Unit Assessor Sheriffs Law Enforcement Sheriffs Special School Constitutional School New Construction School Maintenance Fifth Louisiana Levee District Recreation District No. 1 Recreation District No. 2 Recreation District No. 3 Fire District No. 1 Fire District No. 2 Debt Service Fire District No. 2 Maintenance Forestry Tax Levied Millaee 2.78M 8.45M 9.94M.80M 1.98M 8.62M 12.00M 3.08M 12.55M 27.11M 3.86M 2.74M 6.29M 3.89M 3.15M 2.40M 6.75M $.08/Acre Authorized Millaee 2.78M 8.45M 9.94M.80M 1.98M 8.62M 12.00M 3.08M 13.00M 27.11M 3.86M 2.92M 6.29M 4.00M 3.15M 3.00M 6.94M $.08/Acre Expiration Date N/A N/A N/A N/A N/A -24-

28 VIDALIA, LOUISIANA NOTES TO THE FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2006 NOTE 4 - CASH AND CASH EQUIVALENTS At June 30, 2006, the Sheriff has cash and cash equivalents, book balances, totaling $5,220,710 as follows: Interest-bearing demand deposits $ 972,419 Time deposits 4,248,291 Total $ 5,220,710 These deposits are stated at cost, which approximates market. Under state law, these deposits (or resulting bank balances) must be secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank. The market value of the pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agent. At June 30, 2006, the Sheriff had $5,839,010 in deposits (collected bank balances). These deposits are secured from risk by $400,000 of federal deposit insurance and $5,439,010 of pledged securities held by the custodial bank in the name of the fiscal agent bank. NOTE 5 - ACCOUNTS RECEIVABLE The accounts receivable at June 30, 2006 are as follows: Imate accounts $ 62,700 Telephone commissions 17,766 Other 41,035 Total $ 121,501 NOTE 6 - DUE FROM OTHER GOVERNMENT UNITS Amounts due from other government units at June 30, 2006 were as follows: United States Treasury: Federal grants $ 23,894 State of Louisiana: Prisoner Upkeep 693,977 Mowing 43,034 Other 8,670 Total $ 769,

29 VIDALIA, LOUISIANA NOTES TO THE FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2006 NOTE 7 - CAPITAL ASSETS A summary of the Concordia Parish Sheriffs capital assets follows: Capital assets not being depreciated Land Balance 6/30/2005 $ 87,500 $ Additions $ Retirements Balance 6/30/2006 $ 87,500 Capital assets being depreciated Furniture, fixtures and equipment Buildings and improvements Total Less accumulated depreciation Furniture, fixtures and equipment Buildings and improvements Total 2,054,077 4,919,560 6,973,637 Balance 6/30/2005 $ 932, ,708 1,804, , ,052 Additions $ 257, , ,970 21,117 21,117 Retirements $ 19,154 19,154 2,199,012 4,919,560 7,118,572 Balance 6/30/2006 $ 1,170,461 1,008,207 2,178,668 Total being depreciated 5,168,785 (226,918) 1,963 4,939,904 Capital assets, net S 5,256,285 S (226,918) $ 1,963 $ 5,027,404 Depreciation expense was charged to governmental activities as follows: Public safety Corrections Grass mowing Total $ 237, ,759 21,911 $ 392,970 NOTE 8 - LONG-TERM LIABILITIES AND RESTRICTED ASSETS The following is a summary of long-term liability transactions and balances for the year ended June 30, 2006: Notes payable Compensated absences Total Amounts Beginning Ending Due Within Balance Additions Retirements Balance One Year $ 572,039 $ - $ 572,039 $ - $ 245,294 99, , ,888 $ 817,333 $ 99,594 $ 572,039 $ 344,888 $ 344,

30 VIDALIA, LOUISIANA NOTES TO THE FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2006 NOTE 9 - PENSION PLAN Plan Description - Substantially all employees of the Concordia Parish Sheriffs Office are members of the Louisiana Sheriffs Pension and Relief Fund (System), a multiple-employer (cost-sharing), public employee retirement system (PERS), controlled and administered by a separate board of trustees. All sheriffs, deputies and other employees who are found to be physically fit, who earn at least $400 per month depending on year employed, and who were at least age 18 years or older at the time of original employment are required to participate in the System. Employees are eligible to retire at or after age 55 with at least 12 years of credited service and receive a benefit, payable monthly for life, equal to a percentage of their final-average salary for each year of credited service. The percentage factor to be used for each year of service is 3.33 percent for each year of total service. In any case, the retirement benefit cannot exceed 100 percent of their final-average salary. Final-average salary is the employee's average salary over the 36 consecutive or joined months that produce the highest average. Employees who terminate with at least 12 years of service and do not withdraw their employee contributions may retire at or after age 55 and receive the benefit accrued to their date of termination as indicated previously. Employees who terminate with at least 20 years of credited service are also eligible to elect early benefits between ages 50 and 55 with reduced benefits equal to the actuarial equivalent of the benefit to which they would otherwise be entitled at age 55. The System also provides death and disability benefits. Benefits are established or amended by state statute. Members are not required to make any contributions to the plan. The Concordia Parish Sheriffs Office is required to contribute at an actuarially determined rate. The combined rate is 20.75% of annual covered payroll. The Concordia Parish Sheriffs Office contributions for the year ending June 30, 2006 were $1,301,505. The Louisiana Sheriff Pension and Relief fund issues a publicly available Actuarial Valuation and required supplementary information. That information may be obtained by writing to Sheriffs Pension and Relief Fund, 6554 Florida Blvd., Suite 215, Baton Rouge, LA or by calling (800) NOTE 10 - POST RETIREMENT BENEFITS The Concordia Parish Sheriff provides group health, dental and life insurance benefits to retirees who are at least 55 years of age and who are entitled to receive benefits from the Louisiana Sheriffs Pension and Relief Fund. The fiscal year cost of these benefits, which were established by legislative act in the year 2001, was $3,546. The retired employees are not required to contribute any of the cost of this benefit. At June 30, 2006, one retired employee was a participant. -27-

31 VIDALIA, LOUISIANA NOTES TO THE FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2006 NOTE 11 - CHANGES IN FIDUCIARY FUND TYPE - AGENCY FUND BALANCES The following is a summary of changes in agency fund unsettled balances for the year ended June 30, 2006: Balance Balance July Additions Reductions June Funds Sheriffs $ 126,335 $ 767,263 $ 742,443 $ 151,155 Tax Collector 46,194 10,140,128 10,095,530 90,792 Inmate 109,706 1,405,229 1,276, ,820 $ 282,235 $12,312,620 $12,114,088 $ 480,767 NOTE 12 - EXPENDITURES OF THE SHERIFF'S OFFICE PAID BY THE PARISH POLICE JURY The Sheriffs office is located in the parish courthouse. Expenditures for operation and maintenance of the parish courthouse, as required by state statute, are paid by the Concordia Parish Police Jury and are not included in the accompanying financial statements. NOTE 13 - LITIGATION The Sheriffs Office was involved in one lawsuit at June 30, It is not possible at present for the Concordia Parish Sheriffs legal counsel to predict the outcome or the range of potential loss, if any, that may result from those actions. No provision for any liability that may result has been made in the financial statements, but the lawsuit is considered to be within the Sheriffs insurance limits and therefore should not have any effect on its financial statements. The Concordia Parish Sheriff is not aware of any claims or assessments that should be reflected in the accompanying financial statements. NOTE 14 - RISK MANAGEMENT The Concordia Parish Sheriff is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees, and natural disasters. The Sheriff maintains commercial insurance coverage covering each of those risks of loss. Management believes such coverage is sufficient to preclude any significant uninsured losses to the Sheriff. -28-

32 REQUIRED SUPPLEMENTARY INFORMATION -29-

33 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND YEAR ENDED JUNE 30, 2006 BUDGET VARIANCE WITH FINAL BUDGET POSITIVE REVENUES Ad valorem taxes Intergovernmental revenues Federal Fund: Grants State Funds: State revenue sharing State supplemental pay State and other grants Mowing contract Miscellaneous Fees, charges and commissions: Hydro patrol and disasters Sheriffs sales Fines and forfeitures Civil and criminal fees Feeding and keeping prisoners-jail Feeding and keeping prisoners-cpcf Telephone commissions Commissary sales Interest income ORIGINAL FINAL $2,060,600 $2,040, , , , , , ,400 65,000 30,000 65, ,000 6,142, , , , , , , , , , ,910 30,000 44,000 54,160 80,000 6,095, , , ,416 ACTUAL $2,033, , , , , , , ,645 27,029 40,646 54,785 68,422 6,054, , , ,490 (NEGATIVE) $ (6,784) 14,251 (2,810) (14,679) 1,344 42,036 (7,833) (145,265) (2,971) (3,354) 625 (11,578) (41,617) (27,684) (92,010) (926) Total revenues 11,402,320 10,893,663 10,594,408 (299,255) EXPENDITURES Public safety Correctional facility Grass mowing contract 4,017,338 7,224,880 53,000 4,202,358 7,004,009 71,630 4,022,386 7,206,630 79, ,972 (202,621) (7,952) Total expenditures 11,295,218 11,277,997 11,308,598 (30,601) (Deficiency) of revenues over expenditures 107,102 (384,334) (714,190) (329,856) Fund balance, beginning 6,069,010 6,069,010 6,069,010 _ Fund balance, ending $6,176,112 $5,684,676 $5,354,820 $ (329,856) The accompanying notes are an integral part of the basic financial statements. -30-

34 NOTE TO BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED JUNE 30, 2006 General Budget Policies A proposed budget, prepared on the modified accrual basis of accounting, is published in the official journal at least ten days prior to the public hearing. A public hearing is held at the Concordia Parish Sheriffs office during the month of June for comments from taxpayers. The budget is established and controlled by the sheriff at the object level of expenditure. Appropriations lapse at year-end and must be reappropriated for the following year to be expended. Formal budgetary integration is employed as a management control device during the year. Budgeted amounts included in the accompanying budgetary comparison schedule include the original adopted budget amounts and all subsequent amendments. Budget Basis of Accounting All governmental funds' budgets are prepared on the modified accrual basis of accounting. Budgeted amounts are as originally adopted or as amended by the Sheriff. Legally, the Sheriff must adopt a balanced budget; that is, total budgeted revenues and other financing sources including fund balance must equal or exceed total budgeted expenditures and other financing uses. State statutes require the Sheriff to amend its budgets when revenues plus projected revenues within a fund are expected to be less than budgeted revenues by five percent or more and/or expenditures within a fund are expected to exceed budgeted expenditures by five percent or more. -31-