INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES

Transcription

1 ^001 GRIFFIN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS Stephen M. Griffin, CPA Rbert J. Furman, CPA INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES T the Bard Members Atchafalaya Basin Levee District Prt Allen, 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 Atchafalaya Basin Levee District (the District) is respnsible fr its financial recrds, establishing internal cntrls ver financial reprting, and cmpliance with applicable laws and regulatins. These prcedures were agreed t by management f the District and the Legislative Auditr, State f Luisiana, slely t assist the users in assessing certain cntrls and in evaluating management's assertins abut the District cmpliance with certain laws and regulatins during the year ended June 30,20n. 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 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). Written plicies and prcedures were reviewed and determined t be adequate fr all primary financial/business functin except fr cntracting and related parties. Fr these tw areas, the District did nt have written plicies and prcedures. 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 10% 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 f the respective ttal assets, liabilities, equity, revenues, and expenses. POST OFFICE BOX 983 AAANDEVILLE, LA NORTH CAUSEWAY BLVD., SUITE 200 MANDEVILLE, VA PHONE: (985) FAX: (985)

2 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. The persn respnsible fr cash cllectins is als respnsible fr psting accunts receivable. All ther cash cllectin respnsibilities are adequately segregated, 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. Detemdne if the recnciled balance fr the final mnth f the fiscal year agrees t the general ledger. Credit Cards Bank recnciliatins have been prepared fr all mnths in the perid cvered by the financial statements. All recnciliatins had evidence f management review. The recnciled balances 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 f the persns wh maintained pssessin f the cards. A list f all active credit cards fr the perid under examinatin was btained frm management, 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) Fr each purchase examined, the charge was supprted by an riginal itemized receipt. Dcumentatin f the business/public purpse (Nte: Fr meal charges, there shuld als be dcumentatin f the individuals participating)

3 Fr each purchase examined, the business purpse fr each charge was clearly dcumented, Other dcumentatin as may be required by plicy (e.g., purchase rder, authrizatin, etc.) Fr each purchase examined, there was n additinal ther dcumentatin required by plicy. Determine if selected purchases effectively circumvented the entity's nrmal prcurement/purchasing prcess and/r the Luisiana Public Bid Law Q.e., large r recurring purchases requiring the slicitatin f bids r qutes). Fr the purchases examined, we determined the purchases did nt effectively circumvent the District's nrmal prcurement/purchasing prcess r the Luisiana Public Bid Law. B. Determine if there is evidence f management review f the tiv selected statements. There was evidence f management review fr the tw statements selected. 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 list f all travel and related expense reimbursements was btained and traced t general ledger withut exceptin. 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 All expenditures were reimbursed in accrdance with written plicy, Fr an apprpriate and necessary business purpse relative t the travel All expenditures reimbursed were fr apprpriate and necessary business purpses.

4 Determine if each expenditure is supprted by: An riginal itemized receipt (i.e., identifies precisely what was purchased) ff^th the exceptin f a limited number f transprtatin receipts fr which cpies f the riginal receipt were submitted, all expenditures were supprted by an riginal itemized receipt Dcumentatin f the business/public purpse (Nte: Fr meal charges, there shuld als be dcumentatin f the Individuals participating) All expenditures dcumented the business/public purpse f the expenditure. Other dcumentatin as may be required by plicy (e.g., authrizatin fr travel, cnference brchure, certulcate f attendance, etc.) Nt applicable. Determine if each expense reprt (including dcumentatin) was reviewed and apprved, in writing, by smene ther than the persn receiving reimbursement. All expense reprts reviewed were apprved in writing by smene ther than the persn receiving the 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 t identify individuals/businesses being paid fr cntracted services and selected the Jive vendrs that were paid the mst mney during the perid. Only ne vendr had a written cntract 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 Nt applicable. (2) Materials and supplies

5 Nt applicable, (3) Public wrks A list f all cntracts fr the perid was btained and included ne cntract fr public wrks. This cntract was fr the cnstructin f the District's administrative ffice in Prt Allen. A. Obtain the selected cntracts and the related paid invices and: Determine If the cntract Is a related party transactin by btdning management's representatin. We btained management's representatins that the cntract was nt with a related party. 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.) The cntract was subject t the Luisiana Public Bid Law. The District cmplied with all aspects f the law. If n, determine if the entity prvided an pen and cmpetitive atmsphere (a gd business practice) fr the transactin/wrk. Nt applicable. 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. The cntract was amended as a result f the District desiring t reduce the verall cst f the prject and thus did nt require a separate bid. Select the largest payment frm each f the 3 largest cntracts selected abve and determine if the lnvice(s) received and payment cmph'ed with the terms and cnditins f the cntract. The payments reviewed cmplied with the terms and cnditins f the cntract Determine if there is dcumentatin f bard apprval, if required. The cntract was apprved by the Bard in a public meeting.

6 Payrll and Persnnel L Obtain a listing 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: i 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. During ur review f the five highest paid emplyees, it was nted that fr ne emplyee the pay rate fr the year was entered fr $0.01 less than the actual apprved rate per the persnnel recrds. This was due t runding differences when the payrll rate was calculated. This resulted in the emplyee being underpaid by $27,44 during the perid under examinatin. All ther pigments were made at the crrect pay rate, Determine if changes made t hurly pay rates/salaries during the perid under examinatin were apprved in writing and in accrdance with plicy. Nt applicable - there were n changes t pay rates during the perid under examinatin. 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.) Fr the payrll perid selected, attendance and leave were prperly dcumented fr au emplyees. Determine if supervisrs are apprving, in writing, the attendance and leave f all emplyees. Fr the payrll perid selected, supervisrs prperly apprved all attendance and leave fr 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. Fr the payrll perid selected, it was determined the District is maintaining accurate written leave recrds n all eligible emplyees.

7 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. Budget The tw largest terminatin payments made during the perid under examinatin were reviewed withut exceptin. Bth payments were supprted by adequate dcumentatin, made in strict accrdance with plicy, and were prperly apprved. 1. Obtain a cpy f the legally adpted budget and all amendments. Nt applicable - because the District's financial statements are included in the State's cmprehensive annual financial reprt, they are nt required t cmply with the Luisiana Lcal Gvernment Budget Act 2. Trace the budget adptin and amendments t the minute bk. Nt tqrphcable - because the District's financial statements are included in the State's cmprehensive annual financial reprt, they are nt required t cmply with the Luisiana Lcal Gvernment Budget Act 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 Nt applicable - because the District's financial statements are included in the State's cmprehensive annual financial reprt, they are nt required t cmply with the Luisiana Lcal Gvernment Budget Act 1. If debt was issued during the financial statement perid, verify that State Bnd Cmmissin apprval was btained, as applicable. Nt applicable, 2. Determine cmpliance with applicable debt cvenants. Nt (qfplicable. Crrective Actin 1. Obtain management's respnse and crrective actin plan fr any exceptins nted in the abve agreed-upn prcedures.

8 General Finding: The District did nt have written plicies and prcedures fr cntracts and related party transactins. Respnse: The District is currently in the prcess f develping written plicies and prcedures fr cntracts and related party transactins. Cash Finding: The persn respnsible fr cash cllectins is als respnsible fr psting accunts receivable. Respnse: The District intends t segregate cash cllectin respnsibilities further such that the persn respnsible fr cash cllectins is nt als respnsible fr psting accunts receivable. Travel and Expense Reimbursement Finding: Fr an expense reprt examined, cpies f transprtatin receipts were submitted fr reimbursement instead f the riginal receipt Respnse: The District will require riginal itemized receipts n all future travel and ej^ense reimbursements. Payrll and Persnnel Finding: During ur review f the five highest paid emplyees, it was nted that fr ne emplyee the pay rate fr the year was entered fr $0.01 less than the actual apprved rate per the persnnel recrds. This was due t runding differences when the payru rate was calculated. This resulted in the emplyee being underpaid by $27.44 during the perid under examinatin. Respnse: The District will reimburse the emplyee fr the underpayment f wages nted in these prcedures. 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 District 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 snfiiciency f the prcedures fr their purpses. Under Luisiana Revised Statute 24:513, this reprt is distributed by the Legislative Auditr as a public dcument August 31,2011