NATCHITOCHES HISTORIC DISTRICT DEVELOPMENT COMMISSION STATE OF LOUISIANA

Transcription

1 NATCHITOCHES HISTORIC DISTRICT DEVELOPMENT COMMISSION STATE OF LOUISIANA Independent Accuntants* Reprt n Applying Agreed-Upn Prcedures June 30, 2013

2 GRIFFIN & COAAPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS ^^\P^^^ ^' Griffin CPA Rberl J. Furman, CPA INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES T the Cmmissiners Natchitches Histric District Develpment Cmmissin State f Luisiana Natchitches, Luisiana We have perfrmed the prcedures enumerated belw as they are a required part f the engagement. We are required t perfrm each prcedure and reprt the results, including any exceptins. Management is required t prvide a crrective actin plan that addresses all exceptins nted. Fr any prcedures that d nt apply, we have marked "nt applicable." Management f the Natchitches Histric District Develpment Cmmissin (the Cmmissin) is respnsible fr its linancial recrds, establishing internal cntrls ver financial reprting, and cmpliance with applicable laws and regulatins. These prcedures were agreed t by management f the Cmmissin and the Legislative Auditr, State f Luisiana, slely t assist the users in assessing certain cntrls and in evaluating management's assertins abut the Cmmissin's cmpliance with certain laws and regulatins during the year ended June 30, This agreed-upn prcedures engagement was perfrmed in accrdance with attestatin standards established by the American Institute f Certified Public Accuntants and applicable standards f Gvernment Auditing Standards. The sufficiency f these prcedures is slely the respnsibility f the specified users f this reprt. Cnsequently, we make n representatin regarding the sufficiency f the prcedures described belw either fr the purpse fr which this reprt has been requested r fr any ther purpse General 1. Determine if there are adequate written plicies and prcedures fr the primary financial/business functins f the entity (budgeting, receipts, purchasing, disbursements, payrll/persnnel, cntracting, travel, related parties, and ethics). While the Cmmissin is certain written plicies and prcedures d exist fr all primary financial/business functins, n frmal written plices culd be lcated. 2. Using the financial statements r AFR, perfrm analytical prcedures cmparing current and prir year financial statements, by line item. Identify and btain explanatins fr variances f lov r greater fr line items that are 10% r mre f the respective ttal assets, liabilities, equity, revenues, r expenses. Explanatins were btained fr all variances f 10% r greater fr line items that were 10% r mre fthe respective ttal assets, liabilities, equity, revenues, and expenses. POST OFFICE BOX 983 MANDEVILLE, LA PHONE: (985) FAX; (985) NORTH CAUSEWAY BLVD., SUITE 200 ' MANDEVILLE, LA

3 Cash 1. Prepare a prf f cash fr the perid cvered by the financial statements. A prf f cash was prepared fr the perid cvered by the financial statements withut exceptin. 2. Determine if cash cllectin respnsibilities are adequately segregated t ensure that the persn respnsible fr cash cllectins is nt respnsible fr psting accunts receivable r making depsits. All accunting functins f the Cmmissin are cntracted ut t a Certified Public Accunting firm. The Cmmissin generally receives ne check per year which is mailed directly t the CPA firm. The CPA firm ntifies the Treasurer when the check is received, prepares and makes the depsit, and recrds the depsit in the general ledger. The CPA firm als recnciles the bank accunt. 3. Determine if bank recnciliatins have been prepared fr all mnths in the perid cvered by the financial statements. Determine if there is evidence f management review f the bank recnciliatins. Determine if the recnciled balance fr the final mnth fthe fiscal year agrees t the general ledger. Credit Cards Bank recnciliatins were prepared by the CPA firm fr all mnths in the perid cvered by the financial statements. All bank recnciliatins were apprved by the Cmmissin at their mnthly meetings. The recnciled balance fr the final mnth f the fiscal year did agree t the general ledger. 1. Obtain frm management a listing f all active credit cards (and bank debit cards if applicable) fr the perid under examinatin, including the card numbers and the names fthe persns wh maintained pssessin fthe cards. 2. Obtain the mnthly statements fr all credit/debit cards used during the perid under examinatin and select fr detailed review the largest (dllar amunt) statement fr the tw cards with the mst (dllar amunt) activity: A. Obtain the entity's supprting dcumentatin fr the largest purchase/charge shwn n each selected mnthly statement: Determine if each purchase is supprted by: An riginal itemized receipt (i.e., identifies precisely what was purchased)

4 Dcumentatin f the business/public purpse (Nte: Fr meal charges, there shuld als be dcumentatin fthe individuals participating) Other dcumentatin as may be required by plicy (e.g., purchase rder, authrizatin, etc.) Determine if selected purchases effectively circumvented the entity's nrmal prcurement/purchasing prcess and/r the Luisiana Public Bid Law (i.e., large r recurring purchases requiring the slicitatin f bids r qutes). B. Determine if there is evidence f management review f the tw selected statements. Travel and Expense Reimbursement 1. Obtain a listing f all travel and related expense reimbursements during the perid under examinatin and trace t the general ledger fr cmpleteness. Select fr review the three persns wh were reimbursed the mst mney: The Cmmissin des nt have any travel r related expense reimbursements during the perid under examinatin. A. Obtain all f the expense reimbursement reprts f each selected persn, including the supprting dcumentatin, and chse the largest expense reprt frm each persn t review in detail: Determine if each expenditure is: Reimbursed in accrdance with written plicy (e.g., rates established fr meals, mileage, ldging, etc.) and applicable laws Fr an apprpriate and necessary business purpse relative t the travel Determine if each expenditure is supprted by: An riginal itemized receipt (i.e., identifies precisely what was purchased)

5 Dcumentatin f the business/public purpse (Nte: Fr meal charges, there shuld als be dcumentatin fthe individuals participating) Other dcumentatin as may be required by plicy (e.g., authrizatin fr travel, cnference brchure, certificate f attendance, etc.) Determine if each expense reprt (including dcumentatin) was reviewed and apprved, in writing, by smene ther than the persn receiving reimbursement. Cntracts 1. Review accunting recrds (e.g., general ledgers, accunts payable reprts, etc.) fr the perid under examinatin t identify individuals/businesses being paid fr cntracted services (e.g., prfessinal, technical, etc.). Select the five "vendrs" that were paid the mst mney during the perid and determine if there is a frmal/written cntract that supprts the services arrangement. We reviewed the accunting recrds fr the perid under examinatin and identified tw individuals/businesses being paid fr cntracted services. Bth vendrs selected had frmal/written cntracts that supprted the services arrangement. 2. Obtain a listing f all active cntracts and the expenditures made during the perid under examinatin and trace t the general ledger fr cmpleteness. Select fr detailed review, the largest (dllar amunt) cntract in each f the fllwing categries that was entered int during the perid. (1) Services The Cmmissin perfrmed several public wrk prjects during the perid. In cnnectin with thse prjects, the Cmmissin did utilize the services f an engineer and a landscape architect. Due t the amunts paid being belw the dllar threshld requiring public bid, the Cmmissin did nt slicit public bids nr were written cntracts btained with the service prviders. (2) Materials and supplies

6 (3) Public wrks The Cmmissin perfrmed several public wrks prjects during the perid. Due t the amunts paid being belw the dllar threshld requiring public bid, the Cmmissin did nt slicit public bids nr were written cntracts btained with the cntractrs. A. Obtain the selected cntracts and the related paid invices and: Determine if the cntract is a related party transactin by btaining management's representatin. Management represented that nne f the service prviders and cntractrs paid during the perid were related parties. Determine if the transactin is subject t the Luisiana Public Bid Law r Prcurement Cde: If yes, determine if the entity cmplied with all requirements (e.g., slicited qutes r bids, advertisement, selected lwest bidder, etc.) If n, determine if the entity prvided an pen and cmpetitive atmsphere (a gd business practice) fr the transactin/wrk. Per discussin with Cmmissin persnnel, the Cmmissin searched fr tw years t find a cntractr authrized t perfrm the wrk needed n the histric lcatins. The cntractr utilized was the nly ne wh culd be lcated wh was authrized t perfrm this wrk. The Cmmissin selected the engineer and landscape architect based n their familiarity with the prjects. Determine if the cntract was amended. If s, determine whether the riginal cntract cntemplated r prvided fr such an amendment. Furthermre, determine if the amendment is utside the scpe f the riginal cntract, and if s, whether it shuld have been separately bid and cntracted. Select the largest payment frm each f the 3 largest cntracts selected abve and determine if the invice(s) received and payment cmplied with the terms and cnditins fthe cntract. Determine if there is dcumentatin f bard apprval, if required.

7 Payrll and Persnnel 1. Obtain a lisfing f emplyment cntracts/salaries in frce during the perid under examinatin and trace t the general ledger fr cmpleteness. Select the five highest paid emplyees and: Determine if payments issued during the perid under examinatin were dne in strict accrdance with the terms and cnditins f the cntract r pay rate structure. Determine if changes made t hurly pay rates/salaries during the perid under examinatin were apprved in writing and in accrdance with plicy. 2. Select the attendance and leave recrds fr ne pay perid in which leave has been taken by at least ne emplyee and: Determine if all emplyees are dcumenting their daily attendance and leave (e.g., vacatin, sick, etc.). (Nte: Generally, an elected fficial is nt eligible t earn leave and des nt dcument his/her attendance and leave. Hwever, if the elected fficial is earning leave accrding t plicy and/r cntract, the fficial shuld dcument his/her daily attendance and leave.) Determine if supervisrs are apprving, in writing, the attendance and leave f all emplyees. Determine if the entity is maintaining accurate written leave recrds (e.g., hurs earned, hurs used, and balance available) n all eligible emplyees. 3. Select the tw largest terminatin payments (e.g., vacatin, sick, cmpensatry time, etc.) made during the perid under examinatin. Determine if the payments were supprted by adequate dcumentatin, made in strict accrdance with plicy and/r cntract, and prperly apprved.

8 Budget 1. Obtain a cpy fthe legally adpted budget and all amendments. N exceptin nted. 2. Trace the budget adptin and amendments t the minute bk. N exceptin nted. 3. Cmpare the ttal revenues and ttal expenditures f the final budget t actual ttal revenues and ttal expenditures n the financial statements r AFR. Reprt variances f 10% r greater. Debt Service N variances f 10% r greater were nted. 1. If debt was issued during the financial statement perid, verify that State Bnd Cmmissin apprval was btained, as applicable. 2. Determine cmpliance with applicable debt cvenants. Crrective Actin 1. Obtain management's respnse and crrective actin plan fr any exceptins nted in the abve agreed-upn prcedures. General Finding: The Cmmissin culd nt lcate written plicies and prcedures fr the primary financial/business functins f the entity (budgeting, receipts, purchasing, disbursements, payrll/persnnel, cntracting, travel, related parties, and ethics). Respnse: The Cmmissin will develp new plicies and prcedures fr the primary financial/business functins fthe entity. Cash Finding: Cash cllectin respnsibilities are nt adequately segregated in that the same party receives the checks, prepares and makes the depsits, recrds the depsits n the general ledger, and recnciles the bank accunt.

9 Respnse: The Cmmissin's nly revenue surce is funds received frm the State f Luisiana. The Cmmissin receives ne check fr the same amunt in Nvember f each year. Since there is nly ne depsit made per year, the Cmmissin wuld knw immediately if the depsit was nt made. We feel that the system in place is sufficient fr the Cmmissin. Cntracts Finding: The Cmmissin did nt btain written cntracts fr any f its public wrks prjects r the related engineering and architectural services. Respnse: The Cmmissin fllwed all rules and regulatins as required by state and lcal gvernment statutes in prcuring services and had n prjects that required bids r cntracts in fiscal year Hwever, we will develp written plicies and prcedures regarding btaining written cntracts fr public wrks prjects in the future. We were nt engaged t perfrm, and did nt perfrm, an audit, the bjective f which wuld be the expressin f an pinin n management's assertins. Accrdingly, we d nt express such an pinin. Had we perfrmed additinal prcedures, ther matters might have cme t ur attentin that wuld have been reprted t yu. This reprt is intended slely fr the use f management f the Cmmissin and the Legislative Auditr, State f Luisiana, and shuld nt be used by thse wh have nt agreed t the prcedures and taken respnsibility fr the sufficiency f the prcedures fr their purpses. Under Luisiana Revised Statute 24:513, this reprt is distributed by the Legislative Auditr as a public dcument. QuffUt tc Cmpany, C September 5, 2013