district attorney of the - louisiana legislative · pdf filedistrict attorney of the ... rouge...

3/7

nrr nr ; _r r • ' K.U J lyM J _. J ,' i, 1 ' 1 [ •

DISTRICT ATTORNEY OF THEFIFTH JUDICIAL DISTRICT

Parishes of Franklin, Richland, and West Carroll, Louisiana

Annual Financial StatementsWith Independent Auditor's ReportAs of and for the Two Years Ended

December 31,2004With Supplemental Information Schedules

Under provisions of state taw, this report is a publicdocument Acopy of the report has been submitted tothe entity and other appropriate public officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.

Release Date 7- / ? - Q *?



Annual Financial StatementsWith Independent Auditor's Report

As of and for the Two Years Ended December 31, 2004With Supplemental Information Schedules

C O N T E N T S

Independent Auditor's Report

Required Supplemental Information (Part I)

Management's Discussion and Analysis

Statement Page No.

Basic Financial Statements

Government-Wide Financial Statements:

Statement of Net Assets

Statement of Activities

Fund Financial Statements:

Governmental Funds:

Balance Sheet - December 31, 2004

Balance Sheet - December 31, 2003

Reconciliation of the Governmental Funds Balance Sheet toThe Financial Statement of Net Assets

Statement of Revenues, Expenditures, and Changes inFund Balances - 2004

Statement Page No.

A

B

C

D

11

12

13

14

15

16

-1-

DISTRICT ATTORNEY OF THEFIFTH JUDICIAL DISTRICTParishes of Franklin, Richland, and West Carroll, Louisiana

Contents, December 31, 2004

C O N T E N T S (CONTD.)

Statement of Revenues, Expenditures, and Changes inFund Balances - 2003 F 17

Reconciliation of the Governmental Funds Statement of Revenues,Expenditures, and Changes in Fund BalancesTo the Statement of Activities 18

Fiduciary - Agency Funds:

Statement of Fiduciary Net Assets - 2004 G 19

Statement of Fiduciary Net Assets - 2003 H 20

Notes to the Financial Statements 21

Required Supplemental Information (Part II):Schedule Page No.

Budget Comparison Schedule 1 33

Note to Budgetary Comparison Schedule 37

Reports Required by GovernmentAuditing Standards (Part IV)

Independent Auditor's Report Required byGovernment Auditing Standards:

Independent Auditor's Report on Compliance and InternalControl Over Financial Reporting 40

Schedule of Findings and Questioned Costs 2 42

Summary Schedule of Prior Audit Findings 3 43

-2-

Member American MARY JO FINLEY, CPA, INC. Member Society ofInstitute of Certified ' Louisiana CertifipdPublic Accountants A PROFESSIONAL CORPORATION Public Accountants

116 Professional Drive - West Monroe, LA 71291Phone (318) 329-8880 - Fax (318) 329-8883

Independent Auditor's Report

HONORABLE WILLIAM R. COENEN, JR.DISTRICT ATTORNEY OF THE

FIFTH JUDICIAL DISTRICTParishes of Franklin, Richland, and West Carroll, Louisiana

I have audited the basic financial statements of the District Attorney of the Fifth Judicial District, acomponent unit of the Richland Parish Police Jury, as of December 31, 2004, and for the two years thenended, as listed in the table of contents. These financial statements are the responsibility of the DistrictAttorney of the Fifth Judicial District's management. My responsibility is to express an opinion on thesefinancial statements based on my audit.

I conducted my audit in accordance with U.S. generally accepted auditing standards and GovernmentAuditing Standards, issued by the Comptroller General of the United States. Those standards require thatI plan and perform the audit to obtain reasonable assurance about whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis, evidence supporting the amountsand disclosures in the financial statements. An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overall financial statementpresentation. I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the basic financial statements referred to above present fairly, in all material respects, thefinancial position of the District Attorney of the Fifth Judicial District as of December 31, 2004, and thechanges in its financial position for the two years then ended in conformity with U.S. generally acceptedaccounting principles.

As described in Note 1 to the financial statements, the district attorney has implemented a new financialreporting model, as required by the provisions of GASB Statement No. 34, Basic Financial Statements—andManagement's Discussion and Analysis—for State and Local Governments, as of December 31, 2004.

Management's discussion and analysis, and supplementary information on pages 6 through 9 and 33 through37, respectively are not a required part of the basic financial statements, but are supplementary informationrequired by the Governmental Accounting Standards Board. I have applied certain limited procedures,which consisted principally of inquiries of management regarding the methods of measurement andpresentation of the required supplementary information and reviewing the source of selected information.However, I did not audit the information and express no opinion on it.

-3-

Practice Limited to Governmental Accounting. Auditing and Financial Reporting


Parishes of Franklin, Richlandand West Carroll Parish, Louisiana

Independent Auditor's Report,December 31,2004

My audit was made for the purpose of forming an opinion on the basic financial statements taken as awhole. The supplemental information schedules listed in the table of contents are presented for thepurpose of additional analysis and are not a required part of the basic financial statements of the DistrictAttorney of the Fifth Judicial District. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in my opinion, is fairly presented in all materialrespects in relation to the basic financial statements taken as a whole.

In accordance with Government Auditing Standards, I have also issued a report dated June 28, 2005, onthe District Attorney of the Fifth Judicial District's compliance with laws and regulations, and myconsideration of the agency's internal control over financial reporting. That report is an integral part ofan audit performed in accordance with Government Auditing Standards and should be read in conjunctionwith this report in considering the results of my audit.

West Monroe, LouisianaJune 28, 2005

-4-

REQUIRED SUPPLEMENTARY INFORMATIONPARTI

-5-

District Attorney of the Fifth Judicial DistrictParishes of Franklin, Richland, and West Carroll, Louisiana

Management's Discussion and AnalysisDecember 31,2004

As management of the District Attorney of the Fifth Judicial District, I offer readers of the DistrictAttorney of the Fifth Judicial District's financial statements this narrative overview and analysis of thefinancial activities of the District Attorney of the Fifth Judicial District for the two fiscal years endedDecember 31, 2004. Please read it in conjunction with the basic financial statements and theaccompanying notes to the financial statements.

Overview of the Financial Statements

This Management Discussion and Analysis document introduces the district attorney's basic financialstatements. The annual report consists of a series of financial statements. The Statement of Net Assetsand the Statement of Activities (Government-wide Financial Statements) provide information about thefinancial activities as a whole and illustrate a longer-term view of the district attorney's finances. TheBalance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance - GovernmentalFund (Fund Financial Statements) tell how these services were financed in the short term as well as whatremains for future spending. Fund Financial Statements also report the operations in more detail than theGovernment-Wide Financial Statements by providing information about the most significant funds. Thisreport also contains other supplementary information in addition to the basic financial statementsthemselves.

Our auditor has provided assurance in her independent auditor's report that the Basic Financial Statementsare fairly stated. The auditor, regarding the Required Supplemental Information and the SupplementalInformation is providing varying degrees of assurance. A user of this report should read the independentauditor's report carefully to ascertain the level of assurance being provided for each of the other parts inthe Financial Section.

Go vern ment-widefinancial statements. The government-wide financial statements are designed to providereaders with a broad overview of the District Attorney of the Fifth Judicial District's finances, in a mannersimilar to a private-sector business.

The statement of net assets presents information on all of the District Attorney of the Fifth JudicialDistrict'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 theDistrict Attorney of the Fifth Judicial District is improving or deteriorating.

The statement of activities presents information showing how the government's net assets changed duringthe most recent fiscal year. All changes in net assets are reported as soon as the underlying event givingrise to the change occurs, regardless of timing of related cash flows. Thus, revenues and expenses arereported in this statement for some items that will only result in cash flows in future fiscal periods (forexample, earned, but unused, sick leave).

-6-

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control overresources that have been segregated for specific activities or objectives. The District Attorney of the FifthJudicial District, like other state and local governments, uses fund accounting to ensure and demonstratecompliance with finance-related legal requirements. All of the funds of the District Attorney of the FifthJudicial District can be divided into two categories: governmental funds and fiduciary (agency) funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reportedas governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows andoutflows of spendable resources, as well as on balances of spendable resources available at the end of thefiscal year. Such information may be useful in evaluating a government's near-term financingrequirements.

Because the focus of governmental funds is narrower than that of the government-wide financialstatements, it is useful to compare the information presented for governmental funds with similarinformation presented for governmental activities in the government-wide financial statements. By doingso, 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 statement of revenues, expenditures,and changes in fund balances provide a reconciliation to facilitate this comparison between governmentalfunds and governmental activities.

The District Attorney of the Fifth Judicial District adopts an annual appropriated budget for the generalfund and the special revenue fund. A budgetary comparison statement is provided for the major fundsto demonstrate compliance with this budget.

Fiduciary funds. Fiduciary (agency) funds are used to account for resources held for the benefit of partiesoutside the government. Since these resources are not available to support the District Attorney of theFifth Judicial District's programs, Fiduciary (agency) funds are not reflected in the government-widefinancial statement.

Notes to the financial statements. The notes provide additional information that is essential to a fullunderstanding 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 alsopresents certain required supplementary information concerning the District Attorney of the Fifth JudicialDistrict's performance.

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 District Attorney of the Fifth Judicial Districtexceeded liabilities by $362,767. Approximately 3% of the District Attorney of the Fifth JudicialDistrict's net assets reflects its investment in capital assets (e.g., equipment), less any related debt usedto acquire those assets that is still outstanding. These assets are not available for future spending.

-7-

An additional portion of the District Attorney of the Fifth Judicial District's net assets represents resourcesthat are subject to external restrictions (e.g., debt service). The balance in unrestricted net assets isaffected by two factors: 1) resources expended, over time, by the District Attorney of the Fifth JudicialDistrict 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 ASSETSGovernmental Funds

2004 2003

ASSETSCash and cash equivalents $316,378 $322,132Receivables 40,234 21,835Prepaid expenses 812Capital assets (net of accumulated depreciation) 24,024 12,032

TOTAL ASSETS $381.448

LIABILITIESAccounts payable $1,656 $2,596Payroll withholdings payable 3,916 4,228Long-term debt payable:

Due within one year 3,595Due in more than one year 9,514TOTAL LIABILITIES 18,681 6,824

NET ASSETSInvested in capital assets, net of related debt 10,915 12,032Unrestricted 351,852 337,143

TOTAL NET ASSETS $362.767 $349,175

Financial Analysis of the Government's Funds

As noted earlier, the District Attorney of the Fifth Judicial District uses fund accounting to ensure anddemonstrate compliance with finance-related legal requirements. The focus of the governmental fundsis to provide information on near-term inflows, outflows, and balances of expendable resources. Suchinformation is useful in assessing the financing requirements. In particular, unreserved fund balance mayserve as a useful measure of a government's net resources available for spending at the end of the fiscalyear.

As of December 31, 2004, combined governmental fund balances of $351,852 showed an increase of$14,709 over December 31, 2003. The General Fund's portion of the unreserved, undesignated fundbalance of $285,016 shows an increase (of approximately $15,064) from the prior year amount.

-8-

General Fund Budgetary Highlights

Increases in revenues of the General Fund 2004 original budget and the final budget were due to increasesin fees, charges, and commissions for services and other revenues. Differences between expenditures ofthe 2004 General Fund original budget and the final budget were due primarily to personal services andtravel and other charges.

Increases in revenues of the General Fund 2003 original budget and the final budget were due to increasesin fees, charges, and commissions for services and other revenues. Differences between expenditures ofthe 2003 General Fund original budget and the final budget were due primarily to increases in personalservices, travel and other charges, and capital outlay.

Capital Asset and Debt Administration

Capital assets. The District Attorney of the Fifth Judicial District's investment in capital assets for itsgovernmental activities as of December 31,2004, amounts to $24,024 (net of accumulated depreciation).This investment includes furniture and equipment. The increase in capital assets for 2004 and 2003 were$18,195 and $12,341, respectively.

Long-term debt. The District Attorney of the Fifth Judicial District has debt outstanding of $13,109consisting of a lease payable.

Requests for Information

This financial report is designed to provide a general overview of the District Attorney of the Fifth JudicialDistrict's finances for all those with an interest in the government's finances. Questions concerning anyof the information provided in this report or requests for additional financial information should beaddressed to the District Attorney of the Fifth Judicial District, P.O. Box 389, Rayville, LA 71269.

June 28, 2005

-9-

BASIC FINANCIAL STATEMENTS

-10-

See accompanying notes to basic financial statements.

-11-

Statement ADistrict Attorney of the Fifth Judicial District

Parishes of Franklin, Richland, and West Carroll, LouisianaGovernmental ActivitiesStatement of Net Assets

December 31,2004

2004 2003AssetsCash and cash equivalents $316,378 $322,132Receivables 40,234 21,835Prepaid expenses 812Capital assets (net) 24,024 12,032

Total Assets $381,448 $355,999LiabilitiesAccounts payable $1,656 $2,596Payroll withholding payable 3,916 4,228Long-term liabilities:

Due within one year 3,595Due in more than one year 9,514

Total Liabilities 18,681 6,824Net AssetsInvested in capital assets, net of related debt 10,915 12,032Unrestricted 351,852 337,143

Total Net Assets $362,767 $349,175


Statement B

STATEMENT OF ACTIVITIESDecember 31,2004

2004 2003EXPENSESJudicial:

Personal servicesOperating servicesMaterials and suppliesTravelDepreciation expenseInterest expense

Total Program Expenses

REVENUESProgram revenues:

Commissions on fines and forfeituresOperating grants and contributions

Total program revenuesNet Program Expenses

General revenue:Local revenueUse of money and propertyOther revenue

Total general revenue

Change in Net Assets

Net Assets - Beginning of year

Net Assets - End of year

$401,54933,73210,40728,6666,203374

480,931

299,073172,136471,209(9,722)

2,8843,59616,834

23,314

13,592

349,175

$362,767

$349,87636,33812,53124,5785,857

429,180

235,098182,644417,742(11,438)

9,0008,54232,453

49,995

38,557

310,618

$349,175

The accompanying notes are an integral part of this statement.

-12-

Statement CDISTRICT ATTORNEY OF THE

Fifth JUDICIAL DISTRICTParishes of Franklin, Richland, and West Carroll, Louisiana

GOVERNMENTAL FUNDS

Combined Balance Sheet, December 31, 2004

ASSETSCashReceivablesPrepaid expenses

TOTAL ASSETS

LIABILITIES ANDFUND EQUITY

Liabilities:Accounts payablePayroll deducts payable

Total Liabilities

Fund Equity - fund balance - unreserved - undesignated

TOTAL LIABILITIESAND FUND EQUITY

...MAJOR FUNDS...IV-D

SPECIALGENERAL REVENUE

FUND FUND

$288,402

TOTAL

$277,21510,375

812

$39,16329,859

$316,37840,234

812

$69,022 $357,424

$1,2712,1153,386

285,016

$288,402

$3851,8012,186

66,836

$69,022

$1,6563,9165,572

351,852

$357,424

See accompanying notes and accountant's compilation report.

-13-

Statement DDISTRICT ATTORNEY OF THE

Fifth JUDICIAL DISTRICTParishes of Franklin, Richland, and West Carroll, Louisiana

GOVERNMENTAL FUNDS

Combined Balance Sheet, December 31, 2003

ASSETSCashReceivables

TOTAL ASSETS

LIABILITIES ANDFUND EQUITY

Liabilities:Accounts payablePayroll deductions payableTotal Liabilities

Fund Equity: - fund balance - unreserved - undesignated

TOTAL LIABILITIESAND FUND EQUITY

...MAJOR FUNDS ...IV-D

SPECIALGENERAL REVENUE

FUND FUND TOTAL

$262,590 $59,542 $322,13210.491 11.344 21,835

$273,081 $70,886 $343,967

$1,6491,4803,129

269,952

$273,081

$9472,7483,695

67,191

$70,886

$2,5964,2286,824

337,143

$343,967

See accompanying notes and accountant's compilation report.

-14-


Reconciliation of Governmental FundsBalance Sheet to the Statement of Net Assets

For the Two Years Ended December 31, 2004

2004 2003

Total Fund Balances at December 31Governmental Funds (Statement C and D) $351,852 $337,143

Cost of capital assets $102,295 $84,100Less: Accumulated depreciation (78,271) 24,024 (72,068) 12,032

Long term liabilities at December 31:Lease payable (13,109) NONE

Net Assets at December 31 (Statement A)

-15-

Statement EDistrict Attorney of the Fifth Judicial District

Parishes of Franklin, Richland, and West Carroll, LouisianaGovernmental Funds

Statement of Revenues, Expenditures, and Changes in Fund BalancesFor the Year Ended December 31, 2004

REVENUESIntergovernmental revenues:

Federal grantsLocal grants

Commissions on fines and forfeituresUse of money and property - interest earningsOther revenues

Total revenues

EXPENDITURESCurrent:

Judicial:Personal services and related benefitsOperating servicesMaterials and suppliesTravel and other charges

Debt serviceCapital outlay

Total expendituresEXCESS (Deficiency) OF REVENUES

OVER EXPENDITURES

OTHER FINANCING SOURCEProceeds from lease

EXCESS (Deficiency) OF REVENUES AND OTHERSOURCE OVER EXPENDITURES AND OTHER USE

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING

....Major Funds....

General IV-D Total

$2,884299,073

3,11116,688

$172,136 $172,1362,884

299,073485146

3,59616,834

321,756 172,767 494,523

253,05219,2885,46526,0152,45215,607

321,879

(123)

15,187

15,064

269,952

$285,016

148,49714,4444,9422,651

2,588173,122

(355)

(355)

67,191

$66,836

401,54933,73210,40728,6662,45218,195495,001

(478)

15,187

14,709

337,143

$351,852


-16-


Governmental FundsStatement of Revenues, Expenditures, and Changes in Fund Balances

For the Year Ended December 31,2003

Statement F

REVENUESIntergovernmental revenues:

Federal grantsLocal grants

Commissions on fines and forfeituresUse of money and property - interest earningsOther revenues

Total revenues

EXPENDITURESCurrent:


Capital outlayTotal expenditures

EXCESS OF REVENUES OVER EXPENDITURES

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING

....Major Funds....

General IV-D

$9,000235,098

7,91232,453

$182,644

630

284,463 183,274

Total

$182,6449,000

235,0988,542

32.453467,737

204,96322,8944,46322,5542,483

257,357

27,106

242,846

$269.952

144,91213,4448,0682,0249,858

178,306

4,968

62,223

$67,191

349,87536,33812,53124,57812,341

435,663

32,074

305,069

$337,143


-17-


Reconciliation of Governmental FundsStatement of Revenue, Expenditures, and Changes

in Fund Balances to the Statement of Activities

For the Year Ended December 31, 2004

2004 2003

Total net change in fund balances - governmental funds (Statement E and F) $14,709 $32,074

Amounts reported for governmental activities in the Statementof Activities are different because:

Capital outlays are reported in governmental funds as expenditures. However, in the statementof Activities, the cost of those assets is allocated over their estimated useful lives asdepreciation expense. This is the amount by which capital outlays exceed depreciation for theperiod. 11,992 6,483

Governmental funds report increase in capital lease as an increase in financial resources andan increase in capital outlay for the asset obtained through the lease. In the Statement ofActivities, long term debt is increased when the lease is entered into and decreased as leasepayments are made. (15,187)

Repayment of lease principal is an expenditure in the governmental funds, but the repaymentreduces long-term liabilities in the Statement of Net Assets 2.078

Change in net assets of governmental activities (Statement B)

-18-

Statement GDistrict Attorney of the Fifth Judicial District


Statement of Fiduciary Net Assets - Agency Fund

December 31,2004

SPECIAL WORTHLESSASSET CHECK

FORFEITURE FUND TOTAL

ASSETSCash and cash equivalents $23,000 $2,277 $25.277

LIABILITIESDeposits due others $23,000 $2,277 $25,277

-19-

Statement HDistrict Attorney of the Fifth Judicial District


Statement of Fiduciary Net Assets - Agency Fund

December 31,2003

SPECIAL WORTHLESSASSET CHECK

FORFEITURE FUND TOTAL

ASSETSCash and cash equivalents $14,146 $1.443 $15,589

LIABILITIESDeposits due others

-20-


Notes to the Financial StatementsAs of and for the Year Ended December 31, 2004

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

As provided by Article V, Section 26 of the Louisiana Constitution of 1974, the district attorney has chargeof every criminal prosecution by the state in his district, is the representative of the state before the grandjury in his district, and is the legal advisor to the grand jury. He performs other duties as provided by law.The district attorney is elected by the qualified electors of the judicial district for a term of six years. Thejudicial district encompasses the Parishes of Franklin, Richland, and West Carroll, Louisiana.

The accompanying financial statements of the District Attorney of the Fifth Judicial District have beenprepared in conformity with U.S. generally accepted accounting principles (GAAP) as applied togovernmental units. The Governmental Accounting Standards Board (GASB) is the accepted standardsetting body for establishing governmental accounting and financial reporting principles.

In June 1999, the Governmental Accounting Standards Board (GASB) unanimously approved StatementNo. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and LocalGovernments. Certain of the significant changes in the Statement include the following:

For the first time the financial statements include:

A Management Discussion and Analysis (MD&A) section providing an analysis of the DistrictAttorney's overall financial position and results of operations.

Financial statements prepared using full accrual accounting for all of the District Attorney'sactivities.

These and other changes are reflected in the accompanying financial statements (includingnotes to financial statements).

A. REPORTING ENTITY

As the governing authority of the parish, for reporting purposes, the Richland Parish PoliceJury is the financial reporting entity for Richland Parish. The financial reporting entityconsists of (a) the primary government (police jury), (b) organizations for which primarygovernment is financially accountable, and (c) other organizations for which the nature andsignificance of their relationship with the primary government are such that exclusion wouldcause the reporting entity's financial statements to be misleading or incomplete.

-21-


Parishes of Franklin, Richland, and West Carroll, LouisianaNotes to the Financial Statements (Continued)

Governmental Accounting Standards Board (GASB) Statement No. 14 established criteriafor determining which component units should be considered part of the Richland ParishPolice Jury for financial reporting purposes. The basic criterion for including a potentialcomponent unit within the reporting entity is financial responsibility. The GASB has set forthcriteria to be considered in determining financial accountability. This criteria includes:

1. Appointing a voting majority of an organization's governing body, and:

a. The ability of the district attorney to impose its will on that organization and/or

b. The potential for the organization to provide specific financial benefits to orimpose specific financial burdens on the district attorney.

2. Organizations for which the district attorney does not appoint a voting majority but arefiscally dependent on the district attorney.

3. Organizations for which the reporting entity financial statements would be misleading ifdata of the organization is not included because of the nature or significance of therelationship.

Because the police jury maintains and operates the parish courthouse in which the districtattorney's office is located and provides partial funding for equipment, furniture and suppliesof the district attorney's office, the district attorney was determined to be a component unitof the Richland Parish Police Jury, the financial reporting entity. The accompanyingfinancial statements present information only on the funds maintained by the district attorneyand do not present information on the police jury, the general government services providedby that governmental unit, or the other governmental units that comprise the Richland Parishfinancial reporting entity.

B. BASIC FINANCIAL STATEMENTS - GOVERNMENT-WIDE STATEMENTS

The district attorney's basic financial statements include both government-wide (reportingthe district attorney as a whole) and fund financial statements (reporting the districtattorney's major funds). Both government-wide and fund financial statements categorizeprimary activities as either governmental or business type. All activities of the districtattorney are classified as governmental.

The district attorney reports the following major governmental funds:

-22-



The General Fund is the district attorney's primary operating fund. It accounts forall financial resources of the general government, except those required to beaccounted for in another fund.

The Title IV-D Fund consists of incentive payments and reimbursement grants fromthe Louisiana Department of Social Services, authorized by Act 117 of 1975, toestablish family and child support programs compatible with Title IV-D of the SocialSecurity Act. The purpose of the fund is to enforce the support obligation owed byabsent parents to their families and children, to locate absent parents, to establishpaternity, and to obtain family and child support.

The Statement of Net Assets (Statement A) and the Statement of Activities (Statement B)display information about the reporting government as a whole. These statements include allthe financial activities of the district attorney.

In the Statement of Net Assets, governmental activities are presented on a consolidated basisand are presented on a full accrual, economic resource basis, which recognizes all long-termassets and receivables as well as long-term obligations. Net assets are reported in three parts;invested in capital assets, net of any related debt; restricted net assets; and unrestricted netassets. The district attorney first uses restricted resources to finance qualifying activities.

The government-wide financial statements are prepared using the economic resourcesmeasurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses,assets and liabilities resulting from exchange or exchange-like transactions are recognizedwhen the exchange occurs (regardless of when cash is received or disbursed). Revenues,expenses, gains, losses, assets and liabilities resulting from nonexchange transactions arerecognized in accordance with the requirements of GASB Statement No. 33, Accounting andFinancial Reporting for Nonexchange Transactions.

Program Revenues - Program revenues included in the Statement of Activities (Statement B)are derived directly from parties outside the district attorney's taxpayers or citizenry. Programrevenues reduce the cost of the function to be financed from the district attorney's generalrevenues.

Allocation of Indirect Expenses - The district attorney reports all direct expenses by functionin the Statement of Activities (Statement B). Direct expenses are those that are clearlyidentifiable with a function. Indirect expenses of other functions are not allocated to thosefunctions but are reported separately in the Statement of Activities. Depreciation expense,which can be specifically identified by function, is included in the direct expenses of eachfunction.

-23-



C. BASIC FINANCIAL STATEMENTS - FUND FINANCIAL STATEMENTS

The financial transactions of the district attorney are reported in individual funds in the fundfinancial statements. Fund accounting is designed to demonstrate legal compliance and to aidfinancial management by segregating transactions related to certain government functions oractivities.

Fund financial statements report detailed information about the district attorney. The focus ofgovernmental fund financial statements is on major funds rather than reporting funds by type.Each major fund is presented in a separate column.

A fund is a separate accounting entity with a self-balancing set of accounts that comprise itsassets, liabilities, fund equity, revenues, and expenditures. Funds are classified into threecategories; governmental, proprietary, and fiduciary. Each category, in turn, is divided intoseparate "fund types". Governmental funds are used to account for a government's generalactivities, where the focus of attention is on the providing of services to the public as opposedto proprietary funds where the focus of attention is on recovering the cost of providing servicesto the public or other agencies through service charges or user fees. The district attorney'scurrent operations require the use of only governmental funds. The governmental fund typesused by the district attorney is described as follows:

Governmental Fund Type

General Fund (DistrictAttorneys' Expense)

The General Fund was established in compliance with Louisiana Revised Statute 15:571.11,which provides that twelve per cent of the fines collected and bonds forfeited be transmittedto the district attorney to defray the necessary expenditures of his office.

Special Revenue Funds

Special revenue funds are used to account for the proceeds of specific revenue sources suchas federal and state grants and fees for services. Those revenues are legally restricted, eitherby grant agreement or state law, to expenditures for specified purposes such as family andchild support programs, and specified expenses of the district attorney's office.

-24-



Fiduciary Fund Type - Agency Fund

The agency worthless check fund is used as a depository for partial payments on thecollection of worthless checks. Disbursements are made to merchants and to the sheriffsoffice when full amount is collected. The agency fund is custodial in nature (assets equalliabilities) and does not involve measurement of results of operations. The Special AssetForfeiture Agency Fund accounts for all transactions involving money seized duringcontrolled substance cases, sale of property seized during controlled substance cases andlater declared forfeited by the courts, and the distribution of the above funds in accordancewith Louisiana Revised Statute 40:2616. The fund was created by the Seizure andControlled Dangerous Substance Property Forfeiture Act of 1989 and became effectiveJanuary 1,1990.

D. BASIS OF ACCOUNTING

Basis of accounting refers to the point at which revenues or expenditures/expenses arerecognized in the accounts and reported in the financial statements. It relates to the timing ofthe measurement made regardless of the measurement focus applied.

1. Accrual:

The governmental type activities in the government-wide financial statements arepresented on the accrual basis of accounting. Revenues are recognized when earned andexpenses are recognized when incurred.

2. Modified Accrual:

The governmental fund financial statements are presented on the modified accrual basisof accounting. With this measurement focus, only current assets and current liabilities aregenerally included on the balance sheet. The statement of revenues, expenditures, andchanges in fund balances reports on the sources (i.e., revenues and other financingsources) and uses (i.e., expenditures and other financing uses) of current financialresources. This approach differs from the manner in which the governmental activitiesof the government-wide financial statements are prepared. Governmental fund financialstatements therefore include a reconciliation with brief explanations to better identify therelationship between the government-wide statements and the statements forgovernmental funds.

Governmental funds use the modified accrual basis of accounting. Under the modifiedaccrual basis of accounting, revenues are recognized when susceptible to accrual (i.e.,

-25-



when they become both measurable and available). Measurable means the amount of thetransaction can be determined and available means collectible within the current periodor soon enough thereafter to pay liabilities of the current period. The district attorneyconsiders all revenues available if they are collected within 60 days after the fiscal yearend. Expenditures are recorded when the related fund liability is incurred, except forinterest and principal payments on general long-term debt which is recognized when due,and certain compensated absences and claims and judgments which are recognized whenthe obligations are expected to be liquidated with expendable available financialresources. The governmental funds use the following practices in recording revenues andexpenditures:

Revenues

Commissions on fines and bond forfeitures are recorded in the year they are collected by theparish tax collector.

Fees from the collection of worthless checks are recorded in the year they are collected.Grants are recorded when the district attorney is entitled to the funds. Interest income ontime deposits is recorded when the time deposits have matured and the interest is available.Substantially all other revenues are recorded when received.

Based on the above criteria, commissions on fines and bond forfeitures, and grants have beentreated as susceptible to accrual.

Expenditures

Expenditures are generally recognized under the modified accrual basis of accounting whenthe related fund liability is incurred.

E. CAPITAL ASSETS

Capital assets are capitalized at historical cost or estimated cost if historical cost is notavailable Donated assets are recorded as capital assets at their estimated fair market value atthe date of donation.

Capital assets are reported in the government-wide financial statements but not in the fundfinancial statements. Since surplus assets are sold for an immaterial amount when declared asno longer needed for public purposes by the district attorney, no salvage value is taken intoconsideration for depreciation purposes. All capital assets, other than land, are depreciatedusing the straight-line method over the following useful lives:

-26-



EstimatedDescription Lives

Furniture and fixtures 5-10 yearsVehicles 5 -15 yearsEquipment 5-20 years

F. VACATION AND SICK LEAVE

All employees are entitled to two weeks of non-cumulative vacation leave and seven daysof non-cumulative sick leave each year. Unused vacation and sick leave cannot be carriedforward to the succeeding year. At December 31, 2004, there are no accumulated and vestedbenefits relating to vacation and sick leave that require accrual or disclosure.

G. RISK MANAGEMENT

The district attorney is exposed to various risk of loss related to torts; theft of, damage to, anddestruction of assets; errors and omissions; and injuries to employees. To handle such risk ofloss, the district attorney maintains commercial insurance policies covering his automobile,professional liability and surety bond coverage. No claims were paid on any of the policiesduring the past three years which exceeded the policies' coverage amounts. There were nosignificant reductions in insurance coverage during the year ended December 31, 2004.

H. CASH AND CASH EQUIVALENTS

Under state law, the district attorney may deposit funds within a fiscal agent bank organizedunder the laws of the State of Louisiana, the laws of any other state in the union, or the lawsof the United States. The district attorney may invest in certificates and time deposits of statebanks organized under Louisiana law and national banks having principal offices in Louisiana.At December 31, 2004, the district attorney has cash and cash equivalents (book balances)totaling $341,655.

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 ofsecurities owned by the fiscal agent bank. Deposit balances (bank balances) at December 31,2004, total $361,924 and are fully secured by federal deposit insurance and pledged securities.

-27-



2. RECEIVABLES

The following is a summary of receivables at December 31, 2004:

GeneralFund

Title IV-DSpecial

RevenueFund Total

Intergovernmental revenues: Federal - Departmentof Health and Human Services

Fees, charges and commissions, etc.Total

$29,859$10,375

$29,85910,375

$10,375 $29,859 $40,234

3. CHANGES IN CAPITAL ASSETS

A summary of changes in capital assets follows:

Balance, January 1, 20032003:AdditionsDeletions2004:AdditionsDeletionsBalance at December 31, 2004Less accumulated depreciation

Net capital assets

$71,760

12,340NONE

18,195NONE

102,295(78,271)

4. PENSION PLAN

The district attorney and assistant district attorneys of the Fifth Judicial District are members of theLouisiana District Attorneys Retirement System (System), a cost-sharing, multiple-employer defined benefitpension plan administered by a separate board of trustees.

Assistant district attorneys who earn, as a minimum, the amount paid by the state for assistant districtattorneys and are under the age of 60 at the time of original employment and all district attorneys arerequired to participate in the System. For members who joined the System before July 1, 1990, and whoelected not to be covered by the new provisions, the following applies: Any member with 23 or more yearsof creditable service regardless of age may retire with a 3 percent benefit reduction for each year below age

-28-



55, provided that no reduction is applied if the member has 30 or more years of service. Any member withat least 18 years of service may retire at age 55 with a 3 percent benefit reduction for each year below age60. In addition, any member with at least 10 years of service may retire at age 60 with a 3 percent benefitreduction for each year retiring below age 62. The retirement benefit is equal to 3 percent of the members'average final compensation multiplied by the number of years of his membership service, not to exceed 100percent of his average final compensation.

For members who j oined the System after July 1,1990, or who elected to be covered by the new provisionsthe following applies: Members are eligible to receive normal retirement benefits if they are age 60 and have10 years of service credit, are age 55 and have 24 years of service credit, or have 30 years of service creditregardless of age. The normal retirement benefit is equal to 3.5 percent of the members' final averagecompensation multiplied by years of membership service. A member is eligible for early retirement if heis age 55 and has 18 years of service credit. The early retirement benefit is equal to the normal retirementbenefit reduced by 3% for each year the member retires in advance of normal retirement age. Benefits maynot exceed 100 percent of average final compensation. The System also provides death and disabilitybenefits. Benefits are established or amended by state statute.

The system issues an annual publicly available report that includes financial statements and requiredsupplementary information for the System. That report may be obtained by writing to the Louisiana DistrictAttorneys Retirement System, 2109 Decatur Street, New Orleans, Louisiana 70116-2091, or by calling (504)947-5551.

Plan members are required by state statute to contribute 7.0 per cent of their annual covered salary and thedistrict attorney is required to contribute at an actuarially determined rate. The current rate is 3.75 per centof annual covered payroll. Contributions to the system include .2 per cent of the ad valorem taxes collectedthroughout the state and revenue sharing funds as appropriated by the legislature. The contributionrequirements of plan members and the district attorney are established and may be amended by state statute.As provided by Louisiana Revised Statute 11:103, the employer contributions are determined by actuarialvaluation and are subject to change each year based on the results of the valuation for the prior fiscal year.The district attorney made no contributions to the system for the years ending December 31, 2003 and2002. The Fifth Judicial Districts' contributions to the System for the year ending December 31, 2004,was $3,319, equal to the required contributions for the year.

5. LEASES

The district attorney's office records items under capital leases as an asset and an obligation in theaccompanying financial statements. Capital leases at December 31,2004, is comprised of a lease-purchaseagreement for the purchase of a 2004 Chevrolet Impala, entered into on June 4, 2004, due in 48 monthlyinstallments of $350.27 through May, 2008, with an interest rate of 5.3 per cent per annum.

-29-



The following is a summary of future minimum lease payments, together with the present value of the netminimum lease payments, as of December 31, 2004:

Year Payments2005 $4,2032006 4,2032007 4,2032008 1,752

Total minimum lease payments 14,361Less - amount representing interest (1,252)

Present value of net minimum lease payments $13.109

6. CHANGES IN GENERAL LONG-TERM OBLIGATIONS

The following is a summary of changes in long-term obligation transactions for the two years endedDecember 31,2004:

Long-term obligations at January 1, 2003 NONEAdditions:

2003 NONE2004 $15,187

Deductions:2003 NONE2004 (2,078)

Long-term obligations at December 31,2004 $13,109

7. CHANGES IN AGENCY FUND BALANCES

A summary of changes in unsettled deposits due to others for the two years ended December 31, 2004,follows:

Balance, January 1, 2003 $53,865Additions:

Year ended December 31, 2003 392,786Year ended December 31, 2004 454,929

Reductions:Year ended December 31, 2003 (431,062)

-30-



Year ended December 31, 2004 ($445,241)

Balance, December 31, 2004 $25.277

8. LITIGATION AND CLAIMS

At December 31, 2004, the district attorney is not involved in any litigation, nor is he aware of anyunasserted claims.

9. EXPENDITURES OF THE DISTRICT ATTORNEYNOT INCLUDED IN THE FINANCIAL STATEMENTS

The accompanying financial statements do not include certain expenditures of the district attorney paid outof the funds of the criminal court, the parish police jury, or directly by the state.

-31-

Required Supplemental Information (Part II)

-32-

Schedule 1District Attorney for the 5th Judicial District


Budgetary Comparison ScheduleGeneral Fund


RevenuesLocal grantsCommissions on fines and forfeituresUse of money and properly - interest earningsOther revenues

Total revenues

ExpendituresCurrent:


Debt serviceCapital outlay

Total expenditures

Excess (Deficiency) of Revenuesover Expenditures

OTHER FINANCING SOURCES (Use)Proceeds from lease

Excess (Deficiency) of Revenues and OtherSource Over Expenditures

Fund Balance - BeginningFund Balance - Ending

Budgeted Amounts

Variance WithFinal Budget

Original

$6,000205,0005,00020,000236,000

215,00020,0005,00020,000

3,000263,000

(27,000)

(27,000)

244,446$217,446

Final

$5,000237,0002,50035,000279,500

255,00020,0005,00025,000

16,000321,000

(41,500)

(41,500)

244,446$202,946

Actual

$2,884299,073

3,11116,688

321,756

253,05219,2885,46526,0152,45215,607321,879

(123)

15,187

15,064

269,952$285,016

(Negative)

($2,116)62,073

611(18,312)42,256

1,948712(465)

(1,015)(2,452)393(879)

41,377

15,187

56,564

25,506$82,070

(Continued)

-33-



Budgetary Comparison ScheduleGeneral Fund


Budgeted Amounts

Revenues

Local grantsCommissions on fines and forfeituresUse of money and property - interest earningsOther revenues

Total revenues




Excess of Revenues over Expenditures

Fund Balance - Beginning

Fund Balance - Ending


Original

$9,000191,4002,00015,000217,400

190,00015,0002,0008,000

215,000

2,400

274,126

$276,526

Final

$9,000235,0007,00030,000281,000

205,00023,0004,00023,0003,000

258,000

23,000

274,126

$297,126

Actual

$9,000235,098

7,91232,453284,463

204,96322,8944,46322,5542,483

257,357

27,106

242,846

$269,952

(Negative)

$98912

2,4533,463

37106(463)446517643

4,106

(31,280)

($27,174)

(Continued)

-34-



Budgetary Comparison ScheduleIV-D Fund


RevenuesIntergovernmental revenues - FederalUse of money and property - interest earnedOther revenue

Total revenues






Budgeted Amounts


Orieinal

$182,644600

183,244

145,00014,0008,0003,0003,000

173,000

10,244

67,104$77,348

Final

$182,644600

183,244

152,00016,0006,5003,0005,000

182,500

744

67,104

$67,848

Actual

$172,136485146

172,767

148,49714,4444,9422,6512,588

173,122

(355)

67,191$66,836

(Negative)

($10,508)(115)146

(10,477)

3,5031,5561,558349

2,4129,378

1,099

87($1,012)

(Continued)

-35-



Budgetary Comparison ScheduleIV-D Fund


RevenuesIntergovernmental revenues - FederalUse of money and property - interest earned

Total revenues






Budgeted Amounts


Original

$175,0001,200

176,200

135,00014,0007,0002,0002,000

160,000

16,200

67,443$83,643

Final

$175,0001,200

176,200

143,00017,0007,0002,00010,000179,000

(2,800)

67,443$64,643

Actual

$182,644630

183,274

144,91213,4448,0682,0249,858

178,306

4,968

62,223$67,191

(Negative)

$7,644(570)7,074

(1,912)3,556(1,068)

(24)142694

(7,768)

(5,220)$2,548

(Concluded)

-36-

District Attorney for the 5th Judicial DistrictParishes of Franklin, Richland, and West Carroll, Louisiana

Required Supplementary InformationBudgetary Comparison Schedules for Major Funds


The proposed budget, prepared on the modified accrual basis of accounting, is made available for publicinspection at least fifteen days prior to the beginning of each fiscal year. The budget is then legally adoptedby the district attorney and amended during the year, as necessary. The budget is established and controlledby the district attorney at the object level of expenditure. The district attorney does not utilize encumbranceaccounting. Appropriations lapse at year-end and must be reappropriated for the following year to beexpended. All changes in the budget must be approved by the district attorney.

Formal budgetary integration is employed as a management control device during the year. Budgetedamounts included in the accompanying financial statement include the original adopted budget amounts andall subsequent amendments.

-37-

REPORTS REQUIRED BYGOVERNMENT AUDITING STANDARDS

PART III

-38-

Independent Auditor's Report Requiredby Government Auditing Standards

The following independent auditor's report on compliance with laws, regulations, contracts and internalcontrol is presented in compliance with the requirements of Government Auditing Standards, issued by theComptroller General of the United States, and the Louisiana Governmental Audit Guide, issued by theSociety of Louisiana Certified Public Accountants and the Louisiana Legislative Auditor.

-39-

Member American MARY JO FINLEY, CPA, INC. Member Society ofInstitute of Certified Louisiana CertifiedPublic Accountants A PROFESSIONAL CORPORATION Public Accountants

116 Professional Drive - West Monroe, LA 71291Phone (318) 329-8880 - Fax (318) 329-8883

Independent Auditor's Report on Compliance andInternal Control Over Financial Reporting

HONORABLE WILLIAM R. COENEN, JR.DISTRICT ATTORNEY OF THEFIFTH JUDICIAL DISTRICT

Parishes of Franklin, Richland,and West Carroll, Louisiana

I have audited the general purpose financial statements of the District Attorney of the Fifth Judicial Districtas of and for the year ended December 31, 2004 and have issued my report thereon dated June 28, 2005.I conducted my audit in accordance with U.S. generally accepted auditing standards and the standardsapplicable to financial audits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States.

ComplianceAs part of obtaining reasonable assurance about whether the District Attorney of the Fifth Judicial District'sfinancial statements are free of material misstatement, I performed tests of its compliance with certainprovisions of laws, regulations, contracts and grants, noncompliance with which could have a direct andmaterial effect on the determination of financial amounts. However, providing an opinion on compliancewith those provisions was not an objective of my audit and, accordingly, I do not express such an opinion.The results of my tests disclosed no instances of noncompliance that are required to be reported underGovernment Auditing Standards.

Internal Control Over Financial ReportingIn planning and performing my audit, I considered the District Attorney of the Fifth Judicial District'sinternal control over financial reporting in order to determine my auditing procedures for the purpose ofexpressing my opinion on the financial statements and not to provide assurance on the internal control overfinancial reporting. My consideration of the internal control over financial reporting would not necessarilydisclose all matters in the internal control over financial reporting that might be material weaknesses. Amaterial weakness is a condition in which the design or operation of one or more of the internal controlcomponents does not reduce to a relatively low level the risk that misstatements in amounts that would bematerial in relation to the financial statements being audited may occur and not be detected within a timelyperiod by employees in the normal course of performing their assigned functions. I noted no mattersinvolving the internal control over financial reporting and its operation that I consider to be materialweaknesses.

-40-

Practice Limited to Governmental Accounting, Auditing and Financial Reporting

DISTRICT ATTORNEY OF THE FIFTHJUDICIAL DISTRICTParishes of Franklin, Richland,and West Carroll, Louisiana

Independent Auditor's Report on ComplianceAnd Internal Control Over Financial Reporting, etc.December 31,2004

This report is intended solely for the information and use of the District Attorney of the Fifth JudicialDistrict, the Louisiana Legislative Auditor, and management of the district attorney's office and is notintended to be and should not be used by anyone other than these specified parties. Although the intendeduse of these reports may be limited, under Louisiana Revised Statutes 24:513, this report is distributed bythe Legislative Auditor as a public document.

West Monroe, LouisianaJune 28,2005

-41-

Schedule 2

DISTRICT ATTORNEY OF THE FIFTHJUDICIAL DISTRICT


Schedule of Findings and Questioned CostsFor the Year Ended December 31, 2004

A. SUMMARY OF AUDIT RESULTS

1. The auditor's report expresses an unqualified opinion on the general purpose financialstatements of District Attorney of the Fifth Judicial District.

2. No instances of noncompliance material to the financial statements of District Attorney ofthe Fifth Judicial District were disclosed during the audit.

3. No reportable conditions relating to the audit of the financial statements are reported in theIndependent Auditor's Report on Internal Control.

B. FINDINGS - FINANCIAL STATEMENTS AUDIT

None

-42-

Schedule 3

DISTRICT ATTORNEY OF THE FIFTHJUDICIAL DISTRICT


Summary Schedule of Prior Audit FindingsFor the Year Ended December 31, 2004

There were no audit findings reported in the audit for the two years ended December 31,2002.

-43-

district attorney of the - louisiana legislative · pdf filedistrict attorney of the ... rouge...

Documents