RICHLAND PARISH ASS2SS0R RAYVILLE, LOUISIANA FINANCIAL STATEMENTS PECEMBER 31, 2008

Transcription

1 10^ RICHLAND PARISH ASS2SS0R RAYVILLE, LOUISIANA FINANCIAL STATEMENTS PECEMBER 31, 2008 Under provisions of state law, this report is a public document. Acopy of the report has been submitted to the entity and other appropriate public officials. The report is available forpublic inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court. Release Date 1\ 1^1 o1

2 DECEMBER 31, 2008 TABLE OF CONTENTS Page Independent Auditors' Report 1-2 REQUIRED SUPPLEMENTARY INFORMATION 3 Management's Discussion and Analysis (Unaudited) 4-8 BASIC FINANCIAL STATEMENTS 9 GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS) 10 Statement of Net Assets - Government Activities 11 Statement of Activities 12 FUND FINANCIAL STATEMENTS (FFS) 13 Balance sheet - Governmental Fund 14 Reconciliation of the Governmental Fund Balance Sheet 15 to the Statement of Net Assets Statement of Revenues, Expenditures, and Changes in 16 Fund Balances - Governmental Fund Reconciliation o the Statement of Revenues, Expenditures, 17 and Changes in Fund Balance of the Government Fund to the Statement of Activities Notes to Basic Financial Statements OTHER REQUIRED SUPPLEMENTARY INFORMATION Statement of Revenues, Expenditures, and Changes in Fund Balance Budget (GAAP Basis) and Actual 29 General Fund Additional Reports Independent Auditors' Report on Compliance and Internal Controls Schedule of Findings and Questioned Cost 32

3 Cochran. Clark & Robinson 905 JiJa Slieet PO. Boot 538 Ro»Mte. Louisiana Suson C. Cochfoa CPA AC.Ctafklll. CW Rene6 RobflTson, CR^ ACoocKJScnat CertHled Rjbic Accountcnts (318) (318) Fax (318) INDEPENDENT AUDITORS' REPORT Honorable Emmett "Lee" Brown, III Richland Parish Assessor Rayville, LA We have audited the accompanying financial statements of the governmental activities, and each major fund of Richland Parish Assessor, as of and for the year ended December 31, 2008, which collectively comprise the Assessor's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Richland Parish Assessor's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing 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 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. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Richland Parish Assessor as of December 31, 2008, and the respective changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated May 29, 2009, on our consideration of the Richland Parish Tax Assessor's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant 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

4 Auditing audit. Standards and important for assessing the results of our The management's discussion and analysis and budgetary comparison information on pages 4 through 8 and 29, are not a required part of the basic 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 required supplementary information. However, we did not audit the information and express no opinion on it. Cochran, Clark & Robinson ^/^.C/o^.^'/l^^. Rayville, LA May 29, 2009

5 REQUIRED SITFPLEHENTAKY IHFORMATTON

6 Rayville, Louisiana Management's Discussion and Analysis December 31, 2008 As management of the Richland Parish Assessor, I offer readers of the Richland Parish Assessor's financial statements this narrative overview and analysis of the financial activities of the Richland Parish Assessor for the fiscal year ended December 31, Please read it in conjunction with the basic financial statements and the accompanying notes to the financial statements. Overview Of The Financial Statements This Management Discussion and Analysis document introduces the Assessor's basic financial statements. The annual report consists of a series of financial statements. The Statement of Net Assets and the Statement of Activities (Government-wide Financial Statements) provide information about the financial activities as a whole and illustrate a longer-term view of the Assessor's finances. The Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Fund (Fund Financial Statements) tell how these services were financed in the short term as well as what remains for future spending. Fund Financial Statements also report the operations in more detail than the Government-Wide Financial Statements by providing information about the most significant funds. This report also contains other supplementary information in addition to the basic financial statements themselves. Comparative data for the prior years is only available on a limited basis. Our auditors have provided assurance in their independent auditors' report that the Basic Financial Statements are fairly stated. The auditors regarding the Required Supplemental Information and the Supplemental Information are providing varying degrees of assurance. A user of this report should read the independent auditors' report carefully to ascertain the level of assurance being provided for each of the other parts in the Financial Section. Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the Richland Parish Assessor's finances, in a manner similar to a privatesector business. The statement of net assets presents information on all of the Richland Parish Assessor's 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 Richland Parish Assessor is improving or deteriorating.

7 The statement of activi ties presents information showing how the government' B net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Richland Parish Assessor, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Richland Parish Assessor are governmental funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and governmental fund statements of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Richland Parish Assessor adopts an annual appropriated budget for the general fund. A budgetary comparison statement is provided for the major fund to demonstrate compliance with this budget. Motes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information, in addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Richland Parish Assessor's performance.

8 Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. At the close of the most recent fiscal year, assets of the Richland Parish Assessor exceeded liabilities by $1,151,794. Approximately 5% of the Richland Parish Assessor's net assets reflects its investment in capital assets (e.g., equipment), less any related debt used to acquire those assets that is still outstanding. These assets are not available for future spending. The balance in unrestricted net assets is affected by two factors: 1) resources expended, over time, by the Richland Parish Assessor to acquire capital assets from sources other than internally generated funds (i.e., debt), and 2) required depreciation on assets being included in the statement of net assets for the first time. STATEMENT OF NET ASSETS Government Funds ASSETS Cash and interest bearing deposits Accounts Receivable Other Current Assets Capital assets (net) TOTAL ASSETS LIABILITIES Accounts Payable Payroll Tax Payable TOTAL LIABILITIES NET ASSETS Invested in Capital Assets Unrestricted TOTAL NET ASSETS L L L , ,192 6, , ,681 7,142 8,823 60,769,091,025, , , , ,_014 8,800 9,728 18, , ,

9 The following table provides a summary of the Parish Assessor's changes in net assets: SUMMARY OF CHANGES IN NET ASSETS REVENUES I Program: Charges for Services 11,058 11,662 General: Taxes 792, ,941 Fire District Fees 12,569 12,279 Interest 11,379 12,228 Total Revenues 827, ,110 PROGRAM EXPENSES! Operational 570, ,839 Change in Net Assets 257, ,271 Beginning Net Assets 894, ,215 Ending Net Assets 1.151, Financial Analysis of the Government's Funds As noted earlier, the Richland Parish Assessor uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus of the governmental funds is to provide information on near-term inflows, outflows, and balances of expendable resources. Such information is useful in assessing the financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of December 31, 2008, the general fund's governmental fund balances of $1,091,025 showed an increase of $303,387 over December 31, General Fund Budgetary Highlights Differences between revenues of the original budget and the final budget were due primarily to increases in ad valorem taxes. Capital Asset and Debt Administration Capital assets. The Richland Parish Assessor's investment in capital assets for its governmental activities as of December 31, 2008, amounts to $60,769 (net of accumulated depreciation). This investment includes furniture and equipment. There was a decrease of $46,07 9 in capital assets for the year. Long-term debt. The Richland Parish Assessor has no debt outstanding.

10 short-term debt. The Richland Parish Assessor had Accounts Payable of $1,681 and Payroll Tax Payable of $7,142. Revenues. Program Revenues include fees and charges paid by recipients for goods or services. All taxes are presented as general revenues. At December 31, 2008 the Richland Parish Assessor had total Revenue of $827,438 which included Ad Valorem Taxes of $792,432, Fire District Fees of $12,569, Preparing Tax Rolls for Towns of $11,058, and Interest of $11,379. In 2007, the Richland Parish Assessor had total Revenue of $626,110 which included General Revenues: Ad Valorem Taxes of $589,941 and Program Revenues: Fire District Fees of $12,279, Preparing Tax Rolls for Towns of $11,662, and Interest of $12,228. Expenditures. At December 31, 2008, the Richland Parish Assessor had total expenditures of $524,051 which included Salaries and Related Benefits of $442,923, Operating Services of $48,855, Materials and supplies of $14,849, Travel and Other Charges of $17,424. In 2 007, the Richland Parish Assessor had total expenditures of $481,312 which included Salaries and Related Benefits of $411,232, Operating Services of $42,714, Materials and supplies of $12,965, Travel and Other Charges of $11,829 and Capital Outlay of $2,552. Analysis of overall financial position. The General Fund's ending fund balance for 2008 of $1,091,025 reflects an increase of $303,387. In 2007, the fund balance was $787,638. In 2007 the fund balance increased $144,798 from the prior year. Total Assets. At December 31, 2008, the Richland Parish Assessor had total assets of $1,160,617, which included Cash and Interest bearing deposits of $272,294, Current Account Receivables of $821,192, Other Current Assets of $6,362 and Capital Assets (net) of $60,679. Requests for Information This financial report is designed to provide a general overview of the Richland Parish Assessor's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Richland Parish Assessor, 708 Julia Street, Room 115, Rayville, LA

11 BASIC FINANCIAIi STATEMENTS

12 GOVERNMENT-WIDE FINANCIAL STATEMENTS (6HFS) 10

13 Rayville, Louisiana Statement of Net Assets - Government Activities December 31, 2008 ASSETS Cash and interest-bearing deposits Accounts Receivable (net) Other Current Assets Capital Assets (net) 272, ,192 6,362 60,769 Total Assets 1.160,617 LIABILITIES Accounts Payable Payroll Tax Payable 1,681 7,142 Total Liabilities 8,823 NET ASSETS Invested in Capital Assets Unrestricted Total Net Assets 60,769 1, See Auditors' Report. The accompanying notes are an integral part of the basic financial statements. 11

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15 FUND FINANCIAL STATEMENTS (FFS) 13

16 Rayville, Louisiana Balance Sheet - Governmental Fund December 31, 2008 ASSETS Cash and Interest bearing Deposits 272,294 Accounts Receivable (net) 821,192 Other Current Assets Total Assets 1, LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable Payroll Tax Payable 1, 7, Total Liabilities 8, 823 Fund Balance Fund balance - unreserved, undesignated Fund balance - reserved Total Fund Balance Total Liabilities and Fund Balance 1,,091,,025 1,,091,,025 1,. P?9,,,84 8 See Auditors' Report. The accompanying notes are an integral part of these financial statements. 14

17 Rayville, Louisiana Reconciliation of the Governmental Fund Balance to the Statement of Net Assets December 31, 2006 Sheet Total fund balance for the Governmental Fund 1,091,025 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 oft Equipment, furniture and fixtures, net of accumulated depreciation 60,769 Total Net Assets of Governmental Activities 1,.151, 7.94 See Auditors' Report. The accompanying notes are an integral part of these financial statements. 15

18 Rayville, Louisiana Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Fund For the Year Ended December 31, 2008 Revenues Ad Valorem Taxes Fire District Fees Other Revenue - preparing tax rolls, etc Interest Total Revenues 792,,432 12,,569 11,,058 11,, ,,438 Expenditures Current - General Government: Personnel Services and Related Benefits 442,923 Operating Service 48,855 Materials and Supplies 14,849 Travel and Other Charges 17,424 Total Expenditures 524,051 Excess (deficiency) of Revenues over expenditures 303,387 Fund Balance - Beginning of Year 787,636 Fund Balance - End of Year 1,091,025 See Auditors' Report. The accompanying notes are an integral part of these financial statements. 16

19 Rayville, Louisiana Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of the Governmental Fund to the Statement of Activities For the Year Ended December 31, 2008 Total net changes in fund balance per Statement of Revenues, Expenditures, and Changes in Fund Balances 303,387 The change in net assets reported for Governmental Activities in the Statement of Activities is different because: Less: Depreciation expense [46,079) Total Changes in Net Assets per Statement of Activities 257,308 See Auditors' Report. The accompanying notes are an integral part of these financial statements. 17

20 Rayville, Louisiana Notes to Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES As provided by Article VII, Section 24 of the Louisiana Constitution of 1974, the Assessor is elected by the voters of the parish and serves a term of four years. The Assessor assesses all real and movable property in the parish, subject to ad valorem taxation. The Assessor is authorized to appoint as many deputies as necessary for the efficient operation of his office and to provide assistance to the taxpayers of the parish. The deputies are authorized to perform all functions of the office, but the Assessor is officially and pecuniary responsible for the actions of the deputies. The accounting and reporting policies of the Assessor conform to generally accepted accounting principles as applicable to governments. Such accounting and reporting procedures also conform to the requirements of Louisiana Revised statutes 24:513, as well as any applicable requirements set forth by Audi ts of State and Local Govemments, the industry audit guide issued by the American Institute of Certified Public Accountants; and the Louisiana Governmental Audit Guide. The following is a summary of certain significant accounting policies: A. Financial Reporting Entity As the governing authority of the parish, for reporting purposes, the Richland Parish Police Jury is the financial reporting entity for Richland Parish. The financial reporting entity consists of (a) the primary government (police jury), (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Because the Police Jury maintains and operates the parish courthouse in which the Assessor's office is located, the Assessor was detennined to be a component unit of the Richland Parish Police Jury, the financial reporting entity. The accompanying financial statements present information only on the funds maintained by the Assessor and do not present information on the Police Jury, the general government services provided by the Police Jury, or the other governmental units that comprise the financial reporting entity. See Auditors' Report.. 18

21 Rayville, Louisiana Notes to FinancialiStatements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. Basis of Presentation Government-Wide Financial Statements (GWFS) The statement of net assets and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. The statement of activities presents a comparison between direct expenses and program revenues for each function of the Assessor's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) fees and charges paid by the recipients for goods or services offered by the programs, and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. C. Fund Accounting The accounts of the Assessor are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a separate set of self-balancing accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements. The Assessor maintains only one fund. It is categorized as a governmental fund. The emphasis on. fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. A fund is considered major if it is the primary operating fund of the entity or meets the following criteria: a. Total assets, liabilities, or revenues. or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; and. b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental or enterprise fund are at least S percent of the corresponding total for all governmental and enterprise funds combined. See Auditors' Report. 19

22 Rayville, Louisiana Notes to Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The major fund of the Assessor is described below: Governmental Fund - General Fund The General Fund is the general operating fund of the Assessor. It is used to account for all financial resources except those required to be accounted for in another fund. D. Measurement Focus/Basis of Accounting Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied. Measurement Focus On the government-wide statement of net assets and the statement of activities, governmental activities are presented using the economic resources measurement focus as defined in item b. below. In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate: a. The governmental fund utilizes a "current financial resources" measurement focus. Only current financial assets and liabilities are generally included on its balance sheet. Their operating statement presents sources and uses of available spendable financial resources during a given period. This fund uses fund balance as its measure of available spendable financial resources at the end of the period. b. The government-wide financial statement utilizes an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net assets { or cost recovery) and financial position. All assets and liabilities (whether current or noncurrent) associated with its activities are reported. Government-wide fund ecjuity is classified as net assets. See Auditors' Report. 20

23 Rayville, Louisiana Notes to Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Basis of Accounting In the government-wide statement of net assets and statement of activities, the government activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures (including capital outlay) generally are recorded when a liability is incurred, as under accrual account ing. However, debt service expenditures are recorded only when payment is due. E. Assets, Liabilities And Equity Cash and interest-bearing deposits For purposes of the statement of net assets, cash and interest-bearing deposits include all demand accounts, savings accounts, and certificates of deposits of the Assessor. Capital Assets Capital Assets, which include property, plant and equipment, are reported in the governmental activities column in the government-wide financial statements. Capital assets are capitalized at historical cost or estimated cost if historical cost is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The Assessor maintains a threshold level of $2,500 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. See Auditors' Report. 21

24 Rayville, Louisiana Notes to Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Deprecation of all exhaustible capital assets is recorded as an expense in the statement of activities, with accumulated depreciation reflected in the statement of net assets. Depreciation is provided over the assets' estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows: Furniture, fixtures and equipment 5-10 years Compensated Absences Depending on length of service, employees receive from ten to fifteen days of noncumulative vacation leave each year. Sick leave, which is noncumulative, is earned at the rate of five days each year and one day for every working year over three years, not to exceed fifteen days. There are no accumulated and vested benefits related to vacation and sick leave that require accrual or disclosure. Equity Classifications In the government-wide statements, equity is classified as net assets and displayed in three components: a. Invested in capital assets, net of related debt - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b. Restricted net assets - Consists of net assets with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws and regulations of other governments; or (2) law through constitutional provisions of enabling legislation. c. Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt." In the fund statements, governmental fund equity is classified as fund balance. Fund balance is further classified as reserved and unreserved, with unreserved further split between designated and undesignated. See Auditors' Report. 22

25 Rayville, Louisiana Notes to Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. Revenues, Expenditures, And Expenses Revenues Ad valorem taxes are recorded in the year the taxes are due and payable. Ad valorem taxes are assessed on a calendar year basis, attach as an enforceable lien, and become due and payable on the date the tax rolls are filed with the recorder of mortgages. Louisiana Revised Statute 47:1993 requires that the tax roll be filed on or before November 15 of each year. Ad valorem taxes become delinquent if not paid by December 31. The taxes are normally collected in December of the current year and January and February of the ensuing year. Fees for preparing tax rolls are recorded in the year prepared. Interest income on time deposits is recorded when the time deposits have matured. Interest income on demand deposits is recorded monthly when the interest is earned and credited to the account. Based on the above criteria, ad valorem taxes, and fees for preparing tax rolls have been treated as susceptible to accrual. Expenditures/Expenses In the government-wide financial statements, expenses are classified by character and function. In the fund financial statements, expenditures are classified by character. G. Budgetary Practices The proposed budget for the General Fund, prepared on the modified accrual basis of accounting. Is made available for public inspection at least fifteen days prior to the beginning of each fiscal year. The budget is then legally adopted by the Assessor and amended during the year, as necessary. The budget is established and controlled by the Assessor at the object level of expenditure. Appropriations lapse at year-end and must be reappropriated for the following year to be expended. All changes in the budget must be approved by the Assessor. Formal budgetary integration is employed as a management control device during the year. The budget was amended for the year ended December 31, See Auditors' Report. 23

26 Rayville, Louisiana Notes to Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) H. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires 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 and expenditures during the reporting period. Actual results could differ from those estimates. NOTE 2 - ACCOUNTS RECEIVABLE AND PRINCIPAL TAXPAYERS Accounts Receivable are reported net of an allowance for uncollectible accounts of $26,119. As provided by Louisiana Revised Statute 47:192 5, the assessor is authorized to levy an ad valorem tax in lieu of pro rata deductions from ad valorem taxing authorities. The authorized millage should be an amount necessary to provide no less ad valorem taxes than that received by the assessor in the initial year. The Richland Parish Assessor levied 8.50 mills for 2008 to provide funding for the office. The following are the principal taxpayers assessed valuation: Centerpoint Energy Gas Gulf South Pipeline Co., LP Southeast Supply Header SAPA Extrusions ANR Pipeline Co- Entergy Louisiana, Inc. Jim Taylor Chevrolet, LLC Bellsouth Telecommunications, Inc. Richland State Bank Columbia Gulf Transmission Co. for the parish and their Assessed Valuation 11,681,750 9,934,030 3,998,000 3,330,720 3,057,080 2,645,170 2,067,750 1,851,420 1,403, ,510 Percent of Total Assessed Valuation 12.02% 10.22% 4.11% 3.43% 3.15% 2.72% 2.13% 1.91% 1.44% 1.31% Total 41,247f % See Auditors' Report. 24

27 Rayvi11e, Lou is iana Notes to Financial Statements NOTE 3 - CASH AND INTEREST-BEARING DEPOSITS Under state law, the Assessor may deposit funds within a fiscal agent bank organized under the laws of the State of Louisiana, the laws of any other state in the Union, or the laws of the United States. The Assessor may invest in certificates and time deposits of state banks organized under Louisiana law and national banks having principal offices in Louisiana. At December 31, 2008 the Assessor has cash and interest-bearing deposits (book balances) as follows: Demand Deposits 11,029 Time Deposits 261, ,294 These deposits are stated at cost, which approximates market. Under state law, these deposits (or the 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 bank. These securities are held in the name of the pledging fiscal agent bank in a holding or custodial bank that is mutually acceptable to both parties. Deposit balances (bank balances) at December 31, 2008 are secured as follows: Bank Balances 279^ 344 Federal Deposit Insurance 279,344 NOTE 4 - CAPITAL ASSETS Capital asset balances and activity for the year ended December 31, 2008 are as follows: Balance Balance 1/01/08 Additions Deletions 12/31/08 Capital Assets: Equipment, furniture and fixtures 197, ,377 Less accumulated depreciation: Equipment, furniture and fixtures 90,529 46,079 _;^ 136,608 Net Capital Assets 106,g4g ^0^769 Depreciation expense of $46,079 was charged to the general government function. See Auditors' Report. 25

28 Rayville, Louisiana Notes to Financial Statements NOTE 5 - PENSION PLAN Substantially all employees of the Richland Parish Assessor's office are members of the Louisiana Assessor's Retirement System (system), a multiple-employer (cost-sharing), public employee retirement system (PERS), controlled and administered by a separate board of trustees. The system provides retirement, death, and disability benefits to plan members and beneficiaries. Benefits are established by statute. The system issues an annual publicly available report that includes financial statements and required supplementary information for the system. That report may be obtained by writing to the Louisiana Assessor's Retirement System, Post Office Box 1786, Shreveport. Louisiana or by calling (318) Plan members are required by state statute to contribute a percentage of their annual covered salary and the Richland Parish Assessor is required to contribute at an actuarially determined rate. During the year ended December 31, 2008, the employee rate remained at 8%, and the employer rate was 13.5%., Contributions to the system include.0025% of the taxes shown to be collectible by the tax rolls of each parish. The contribution requirements of plan members and the Richland Parish Assessor are established and may be amended by state statute. As provided by Louisiana Revised Statute 11:103, the employer contributions are determined by actuarial valuation and are subject to change each year based on the results of the valuation for the prior fiscal year. The payroll covered by the plan and the Richland Parish Assessor's required contribution to the system are as follows: Payroll Covered 269,577 Required Contribution 36,128 In the current year the required contribution was funded 100%. required contribution was also funded 100% in 2003 through The NOTE 6 - DEFERRED COMPENSATION PLAN The Richland Parish Assessor offers its employees participation in a Deferred Compensation Plan adopted and established in accordance with Internal Revenue Code Section 457. The plan, available to all Assessor's employees, permits the employees to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or proof of hardship. The Assessor's Office provides a match of up to $200 per month for employees participating in the plan. See Auditors' Report. 26

29 Rayville, Louisiana Notes to Financial Statements NOTE 7 - POST EMPLOYMENT BENEFITS The Richland Parish Assessor provides certain continuing health care insurance benefits for its retired employees. Substantially all of the assessor's employees become eligible for these benefits if they reach normal retirement age while working for the assessor. These benefits for retirees are provided through an insurance company whose monthly premiums are paid by the assessor until the end of the calendar year in which the employee retires. The assessor recognizes the cost of providing these benefits as an expenditure when the monthly premiums are paid. These premiums are financed on a "pay-as-you-go" basis. There was nothing paid in post employment benefits in NOTE 8 - RELATED PARTY TRANSACTIONS The Richland Parish Assessor's office is located in the court house of Richland Parish. The Police Jury provides the office space for the Assessor's office. Minor repairs, electricity, water, and sewer fees are all paid by the Police Jury. NOTE 9 - LEASES The Richland Parish Assessor has entered into the following operating leases. The assessor entered into an operating lease agreement for a Konica copier printer, model Payments of the lease of the Konica 7235 began in January The lease calls for 48 payments of $227. The lease can be terminated with a 30 day notice. The lease ended during the current year. In September 2008, the Assessor entered into an operating lease agreement for a Bizhub copier printer model C353. The lease calls for 60 payments of $284. The Richland Parish Assessor leases a vehicle under three year cancelable operating lease agreements. The agreement requires the assessor to buy and maintain liability and physical damage insurance and to maintain and repair the vehicles to keep them in good working order and condition. At the end of the lease, the assessor may be required to pay an additional charge to lessor for excess wear and excess mileage. If the leases are terminated before the three year term has expired, a similar charge may be required. On June 1, 2006, the assessor entered into an operating lease agreement for a 2007 Chevrolet Avalanche Truck. The lease agreement required an initial payment of $1,304 plus 36 monthly payments of $496. See Auditors' Report. 27

30 Rayville, Louisiana Notes to Financial Statements NOTE 9 - LEASES (continued) A schedule of lease payments made during the year ended December is as follows: Bizhub Copier 567 Konica Copier 2, Avalanche 6,446 NOTE 10- RISK MANAGEMENT The Assessor 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 Assessor has obtained coverage from various commercial insurance companies to reduce the exposure to these risks. See Auditors' Report. 28

31 OTHER REQUIRED SDPPLEMENTARr INFORMATION

32 Rayville, Louisiana Statement Of Revenues, Expenditures, And changes In Fund Balance Budget (Gaap Basis) And Actual - Governmental Fund Type For The Year Ended December 31, 2008 (Unaudited) Revenues Ad Valorem Taxes Fire District Fees Other Revenue - preparing tax rolls, etc. Interest Original Budget 585,000 11,000 11,000 2,000 Amended Budget 775,000 11,000 9,300 3,400 Actual 792,432 12,569 11,058 11,379 Variance Favorable (Unfavorable) 17,432 1,569 1,758 7,979 Total Revenues 609, , ,438 28,738 Expenditures Current - General Government: Personnel Services and Related Benefits Operating Service Materials and Supplies Travel and Other Charges Capital Outlay 452,160 49,700 14,000 15,016 6, ,000 55, ,000 19,000 6, ,923 48,855 14,849 17,424-27,077 6,145 1,151 1,576 6,000 Total Expenditures 536, ,051 41,949 Excess ( deficiency) of Revenues over expenditures 72, ,7 70,687 Fund Balance - Beginning of Fund Balance - End of Year Year 787,638 1,091,025 See Auditors' Report. these statements. The accompanying notes are an integral part of 29

33 Cochran, Clark & Robinson <?05 JJO Sheet PO. BCK 538 RoyvB. Uxisicno AcoooKifionoiceni^pjdkiAcco^tcx^ Suson C. Cochfon. Cf*^ (318) A,C. Oark ill. CW (318) Pene6 Robinson. CFW Fox (318) 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 Richland Parish Assessor Rayville, LA We have audited the financial statements of the governmental activities and each major fund of Richland Parish Assessor, as of and for the year ended December 31, 2008, which collectively comprise the Richland Parish Assessor's basic financial statements and have issued our report thereon dated May 29, We conducted our audit in accordance with auditing 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered Richland Parish Assessor's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Richland Parish Assessor's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Richland Parish Assessor's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Richland Parish Assessor's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Richland Parish Assessor's financial statements that is more than inconsequential will not be prevented or detected by the Richland Parish Assessor's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Richland Parish Assessor's internal control. 30

34 Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Richland Parish Assessor's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management, and is not intended to be and should not be used by anyone other than these specified parties. Cochran, Clark & Robinson (^^^>e^.alj_i/.i^^_^ Rayville, LA May 29,

35 RAYVILLE, LOUISIANA Schedule of Findings and Questioned Costs For the Year Ended December 31, 2008 A. SUMMARY OF AUDIT RESULTS 1. The Auditors' report expresses an unqualified opinion on the financial statements of the Richland Parish Assessor. 2. No instances of noncompliance material to the financial statements of the Richland Parish Assessor were disclosed during the audit. 3. NO significant deficiency relating to the audit of the financial statements are reported in the Independent Auditors' Report on Internal Control. B. FINDINGS - FINANCIAL STATEMENTS AUDIT None 32