greensburg, louisiana annual financial statements ended ...file/00000261.pdf · 06jul-5 ph |:q3 st....

06JUL-5 PH |:Q3

ST. HELENA PARISH ASSESSORGREENSBURG, LOUISIANA

Annual Financial Statements

As of and for the Two YearsEnded December 31,2005

Under provisions of state law, this report is a publicdocument. A copy 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 ~ - 0

St. Helena Parish AssessorAnnual Financial Statements

As of and for the Two Years Ended December 31,2005

TABLE OF CONTENTSStatement Schedule Page

Independent Auditor's Report 2

Required Supplemental Information (Part I):

Management's Discussion and Analysis 5

Basic Financial Statements:

Governmental Fund Balance Sheet / Statement of Net Assets A 9Statement of Governmental Fund Revenues, Expenditures, and

Changes in Fund Balance / Statement of Activities - 2005 B 10Statement of Governmental Fund Revenues, Expenditures, and

Changes in Fund Balance / Statement of Activities - 2004 C 11

Notes to the Financial Statements 12

Required Supplemental Information (Part II):

Budgetary Comparison Schedule - 2005 la 24

Budgetary Comparison Schedule - 2004 Ib 25

Other Independent Auditor's Reports and Findings and Recommendations:

Summary Schedule of Prior Year Audit Findings 2 27

Corrective Action Plan for Current Year Audit Findings 3 28

Report on Compliance and on the Internal Control Over Financial ReportingBased on an Audit of Financial Statements Performed in Accordancewith Government Auditing Standards 29

Bruce C. Harrell, CPA

Dale H. Jones, CPA

INTERNETwww.teamcpa.com

MEMBERSAmerican Institute of CPAsSociety of Louisiana CPAs

B R U C E H A R R E L La n d C O M P A N Y

109 West Minnesota ParkPark Place Suite 7

Hammond, LA 70403VOICE: (985) 542-6372

FAX: (985)345-3156

P.O. Box 45 - 909 Avenue GKentwood, LA 70444

VOICE: (985) 229-5955FAX: (985) 229-5951

To the Honorable Wesley BladesSt. Helena Parish AssessorGreensburg, Louisiana

We have audited the accompanying financial statements of the governmental activities and the general fund ofthe St. Helena Parish Assessor, a component unit of the St. Helena Parish Police Jury, as of and for the twoyears ended December 31, 2005, which collectively comprise the St. Helena Parish Assessor's basic financialstatements, as listed in the table of contents. These financial statements are the responsibility of themanagement of the St. Helena Parish Assessor. Our responsibility is to express an opinion on these financialstatements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Governmental Auditing Standards,issued by the Comptroller General of the United States. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the basic financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall basic financial statement presentation. Webelieve 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 respectivefinancial position of the governmental activities and the general fund of the St. Helena Parish Assessor, as ofDecember 31, 2005, and the results of its operations for the two years then ended in conformity withaccounting principles generally accepted in the United States of America.

In accordance with Governmental Auditing Standards, we have also issued our report dated June 23, 2006 onour consideration of the St. Helena Parish Assessor's internal control over financial reporting and our tests ofits compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral partof an audit performed in accordance with Governmental Auditing Standards and should be read in conjunctionwith this report considering the results of our audit.

BRUCE HARRELL & CO.CERTIFIED PUBLIC ACCOUNTANTSA Professional Accounting Corporation

To the Honorable Wesley Blades, AssessorSt. Helena Parish Assessor

Page 2

The management's discussion and analysis on pages 5 through 7 and the budgetary comparison schedulesidentified as Schedules la and Ib are not a required part of the basic financial statements but aresupplementary information required by accounting principles generally accepted in the United States ofAmerica. We have applied certain limited procedures, which consisted principally of inquiries of managementregarding the methods of measurement and presentation of the required supplementary information. However,we did not audit the information and express no opinion on it.

Bruce Harrell & Company, CPAsA Professional Accounting Corporation

June 23,2006

Required Supplemental Information - Part IManagement's Discussion and Analysis

St. Helena Parish AssessorGreensburg, Louisiana

Management's Discussion and AnalysisAs of and for the Two Years Ended December 31,2005

Introduction

As management of the St. Helena Parish Assessor, Greensburg, Louisiana (the "Assessor"), we offer readersof the Assessor's financial statements this narrative overview and analysis of the financial activities of theAssessor for the fiscal year ended December 31, 2005 and December 31, 2004. This management discussionand analysis ("MD&A") is designed to provide an objective and easy to read analysis of the Assessor'sfinancial activities based on currently known facts, decisions, or conditions.

This discussion and analysis is designed to (a) assist the reader in focusing on significant financial issues, (b)provide an overview of the St. Helena Parish Assessor's financial activity, (c) identify changes in theAssessor's financial position, (d) identify any significant variations from the Assessor's financial plan, and (e)identify individual fund issues or concerns.

Since Management's Discussion and Analysis (MD&A) is designed to focus on the current year's activities,resulting changes, and currently known facts, please read the following in conjunction with the Assessor'sfinancial statements and footnotes, which follow this section.

Financial Highlights

Total assets for the fiscal year ending December 31, 2005 on the government-wide statement of netassets were $483,301 at December 31, 2005, and exceeded liabilities in the amount of $456,320 (i.e., netassets). Of the total net assets, $440,463 was unrestricted and available to support short-term operations,with the balance of $15,857 invested in capital assets, net of related depreciation.

Advalorem taxes, the main source of revenue for the assessor's office totaled $258,474 for the currentfiscal year, as compared to $237,496 for the fiscal year ending December 31, 2004.

Total expenses for the fiscal year ending December 31,2005 were $248,384, increasing by $13,677from $234,707 for the prior fiscal year.

Overview of Annual Financial Report

Management's Discussion and Analysis (MD&A) serves as an introduction to the basic financial statementsand supplementary information. The MD&A presents an overview of management's examination and analysisof the Assessor's condition and performance.

The financial statements report information on the Assessor using full accrual accounting methods similar tothose used in private business sector. Financial statements include the Governmental Fund Balance Sheet /Statement of Net Assets, and the Statement of Governmental Fund Revenues, Expenditures, and Changes inFund Balance / Statement of Activities. Because of the simple structure of the Assessor's financial system, thefund statements and the government-wide statements are combined into one reporting format. The Statementof Net Assets provides information about the nature and amount of the Assessor's resources and obligations at

St. Helena Parish AssessorGreens burg, Louisiana

Management's Discussion and AnalysisAs of and for the Two Years Ended December 31,2005

year-end, and provides a basis for evaluating the capital structure of the Assessor and assessing the liquidityand financial flexibility of the Assessor.

The Statement of Activities accounts for the operation of the Assessor's revenues and expenses for the fiscalyear and the resulting change in net assets and provides information on how net assets changed during theyear. This statement measures the success of the Assessor's operations in a format that can be used todetermine if the Assessor has recovered its costs of operation from general revenues.

The notes to the financial statements provide required disclosures essential for providing an understanding ofthe financial statements. The notes present information about the Assessor's accounting policies, significantaccount balances and activities, commitments, and subsequent events, if any. Supplementary informationincludes budget/actual comparative schedules.

Financial Analysis

The purpose of financial analysis is to help determine whether the Assessor is better off as a result of thecurrent year's activities. Since the financial structure is not complicated and Statement A (Condensed FundBalance Sheet / Statement of Net Assets) and Statement B (Statement of Governmental Fund Revenues,Expenditures, and Changes in Fund Balance / Statement of Activities) provide adequate disclosure of accountgroupings per financial statement category, disclosure of general revenues, and expenses on a function basis,these statements are not summarized below. Refer to these statements for the analyses presented below:

Statement of Net Assets

The major components of change for "Current Assets" are a $29,454 increase in cash and $23,542 increase inAdvalorem Tax Receivable.

"Capital Assets" decreased by $3,074, reflecting the depreciation expense recorded for the fiscal year endingDecember 31,2005.

"Current Liabilities" increased by $9,399 primarily due to Retirement Payable of $3,070, plus audit fees andminor increases in payroll taxes payable.

"Total Net Assets" (total assets less total liabilities) increased by $39,960 for the fiscal year ending December31,2005, reflecting the Assessor's attempts to conservatively budget available revenues.

Statement of Activities

While the Statement of Net Assets shows the change in financial position of net assets, the Statement ofRevenues, Expenses, and Changes in Net Assets provides answers to the nature and scope of these changes.The above table gives an indication of how the St. Helena Parish Assessor is being conservatively managed.Revenues increased by $18,889 primarily due to increases in advalorem taxes collected. Expenses for theAssessor remained relatively constant totaling $248,384 at December 31, 2005, increasing by $13,677 from$234,707 for the prior fiscal year. Increases were spread across the salaries and related benefits and officesupplies categories.


Management's Discussion and AnalysisAs of and for the Two Years Ended December 31, 2005

Budgetary Highlights

Other Supplementary Information

In addition to the basic financial statements and accompanying notes, this report also presents certain requiredsupplementary information. Required supplementary information can be found beginning on page 24 of thisreport.

A. Budgetary Comparison Schedule - The Assessor adopts an annual appropriated budget for the GeneralFund. Budgetary comparison statements have been provided for this fund to demonstrate compliance withthe budget, presented as Schedules la and Ib.

B. Analysis of Significant Budget Variances in the Assessor's Salary and Expense Fund:

a. The actual budget for revenues exceeded budgeted revenues by $22,744 primarily because ofincreases in advalorem tax revenue.

b. Expenses did not vary significantly from the original or amended budget, with actual expensesabove budgeted final expenses by $1,781.

Capital Assets

The Assessor's investment in capital assets for its governmental activities as of December 31,2005 amounts to$15,857 ($83,295 cost less $67,438 accumulated depreciation). This investment in capita! assets includes avehicle, office furniture and equipment. The total increase in the Assessor's capital assets net of depreciationfor the current fiscal year was $1,713. Depreciation expense was $5,734 for the fiscal year ending December31,2005.

The only capital asset addition during the current fiscal year was the purchase of 3 LCD-17 inch computermonitors in the amount of $2,097. Additional information on the St. Helena Parish Assessor's capital assetscan be found in note 5 on pages 20-21 of this report.

Future Economic Plans

The goal of the Assessor is to manage tax revenues conservatively. This is reflected in conformance toenacted budgets and in the efforts of the Assessor to control the level of expenditures.

Requests for Information

This financial report is designed to provide a general overview of the Assessor's finances for all those with aninterest in the government's finances. Questions concerning any of the information provided in this report orrequests for additional financial information should be addressed to The Honorable Wesley Blades, Assessor;Post Office Box 607; Greensburg, Louisiana 70441.

7

Basic Financial Statements


Governmental Fund Balance Sheet / Statement of Net AssetsDecember 31,2005

Statement A

AssetsCash and Cash EquivalentsReceivables, Net of Allowance

for UncollectibleCapital Assets, Net of

Accumulated DepreciationTotal Assets

LiabilitiesAccounts PayableClaims PayablePayroll Taxes PayableDeferred Revenue - Advalorem TaxesUncollectible Property Taxes

Total Current Liabilities

Fund BalanceUnreserved

Total Liabilities and Fund Balance

Net AssetsInvestment in Capital Assets, Net of Related DebtUnrestricted

Total Net Assets

GeneralFund

218,915 $

248,529

467,444

4,66211,2454,4974,8506,57731,831

435,613$467,444 $

Adjustments(Note 1)

15,85715,857

(4,850)

(4,850)

Statement ofNet Assets

218,915

248,529

15,857483,301

4,66211,2454,497

6,57726,981

456,320$483,301

15,857440,463456,320

The accompanying notes are an integral part of these statements.

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Statement of Governmental Fund Revenues, Expenditures, and Changesin Fund Balance / Statement of ActivitiesFor the Year Ended December 31,2005

Statement 3

Expenditures / ExpensesSalaries and Related BenefitsLegal and AccountingInsuranceOffice Supplies and ExpenseCapital OutlayTravelDepreciation

Total Expenditures

General RevenuesAd Valorem TaxesState Revenue SharingInterest EarningsOther Revenues

Total General Revenues

Excess of Revenues over Expenditures

Fund Balance/Net Assets - Beginning of Year

Fund Balance/Net Assets - End of Year

GeneralFund(220,013) :

(4,250)(1,571)

(16,582)(2,097)

(234)-

(244,747)

Adjustments(Note 1)

$ - :---

2,097-

(5,734)(3,637)

Statement ofActivities

$ (220,013)(4,250)(1,571)

(16,582)-

(234)(5,734)

(248,384)

258,47419,0517,4353,384

288,344

43,597 (3,637)

392,016

258,47419,0517,4353,384

288,344

39,960

416,360

435,613 $ $ 456,320

The accompanying notes are an integral part of these statements.

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Statement of Governmental Fund Revenues, Expenditures, and Changesin Fund Balance / Statement of ActivitiesFor the Year Ended December 31,2004

Statement C

Expenditures / ExpensesSalaries and Related BenefitsLegal and AccountingInsuranceOffice Supplies and ExpenseRepairs and MaintenanceCapital OutlayTravelDepreciation

Total Expenditures




Fund Balance/Net Assets - Beginning of Year

Fund Balance/Net Assets - End of Year

GeneralFund(209,674) !

(4,000)(1,442)(5,181)(8,611)

(14,675)(623)

-

(244,206)

Adjustments(Note 1)

S----

14,675-

(5,176)9,499

Statement ofActivities

$ (209,674)(4,000)(1,442)(5,181)(8,611)

-(623)

(5,176)(234,707)

232,64620,0486,3455,566

264,605

20,399 '

371,617

4,850---

4,850

14,349

-

237,49620,0486,3455,566

269,455

34,748

381,612

392,016 $ $ 416,360

(Concluded)The accompanying notes are an integral part of these statements.

11


Notes to Financial StatementsAs of and for the Two Years Ended December 31,2005

INTRODUCTION

As provided by Article VII, Section 24 of the Louisiana Constitution of 1974, the assessor is elected by thevoters of the parish and serves a four-year term. The assessor assesses all real and movable property in theparish, subject to ad valorem taxation. The assessor is authorized to appoint as many deputies as may benecessary for the efficient operation of the office and provides assistance to the taxpayers of the parish. Thedeputies are authorized to perform all functions of the office, but the assessor is officially and pecuniarilyresponsible for the actions of the deputies.

The assessor's office is located adjacent to the St. Helena Parish Courthouse in Greensburg, Louisiana. Theassessor employs 3 employees, including one chief deputy. In accordance with Louisiana law, the assessorbases real and movable property assessments on conditions existing on January 1 of the tax year. The assessorcompletes an assessment listing by May 1 of the tax year and submits the list to the parish governing authorityand the Louisiana Tax Commission as prescribed by law. Once the assessment listing is approved, theassessor submits the assessment roll to the parish tax collector who is responsible for collecting anddistributing taxes to the various taxing bodies.

At December 31,2005, there are 3,488 real property and movable taxpayer property assessments totaling$35,529,580. This represents an increase of 33 assessments over the prior year.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. BASIS OF PRESENTATION

The accompanying basic financial statements of the St. Helena Parish Assessor have been prepared inconformity with governmental accounting principles generally accepted in the United States ofAmerica. The Governmental Accounting Standards Board (GASB) is the accepted standard-settingbody for establishing governmental accounting and financial reporting principles. The accompanyingbasic financial statements have been prepared in conformity with GASB Statement 34, BasicFinancial Statements-and Management's Discussion and Analysis—for State and Local Governments,issued in June 1999.

B. REPORTING ENTITY

The assessor is an independently elected official; however, the assessor is fiscally dependent on the St.Helena Parish Police Jury. The police jury maintains and operates the parish courthouse in which theassessor's office is located and provides funds for equipment and furniture of the assessor's office. Inaddition, the police jury 's general purpose financial statements would be incomplete or misleadingwithout inclusion of the assessor. For these reasons, the assessor was determined to be a componentunit of the St. Helena Parish Police Jury, the financial reporting entity.

12

St. Helena Parish AssessorGreen sburg, Louisiana


The accompanying financial statements present information only on the funds maintained by theassessor and do not present information on the police jury, the general government services providedby that governmental unit, or the other governmental units that comprise the financial reporting entity.

C. FUND ACCOUNTING

The assessor uses funds to maintain its financial records during the year. Fund accounting is designed todemonstrate legal compliance and to aid management by segregating transactions related to certain taxassessment functions and activities. A fund is defined as a separate fiscal and accounting entity with a self-balancing set of accounts.

Governmental Funds

Governmental funds account for all or most of the assessor's general activities. These funds focus on thesources, uses, and balances of current financial resources. Expendable assets are assigned to the variousgovernmental funds according to the purposes for which they may be used. Current liabilities are assigned tothe fund from which they will be paid. The difference between a governmental fund's assets and liabilities isreported as fund balance. In general, fund balance represents the accumulated expendable resources whichmay be used to finance future period programs or operations of the assessor. The following are the assessor'sgovernmental funds:

General Fund - the primary operating fund of the assessor and it accounts for all financial resources,except those required to be accounted for in other funds. The General Fund is available for anypurpose provided it is expended or transferred in accordance with state and federal laws and accordingto the assessor's policy.

D. MEASUREMENT FOCUS/BASIS OF ACCOUNTING

Fund Financial Statements (FFS)

The amounts reflected in the General and Assessment Funds of Statements A, B, and C are accounted forusing a current financial resources measurement focus. With this measurement focus, only current assets andcurrent liabilities are generally included on the balance sheet. The statement of revenues, expenditures, andchanges in fund balances reports on the sources (i.e., revenues and other financing sources) and uses (i.e.,expenditures and other financing uses) of current financial resources. This approach is then reconciled,through adjustment, to a government-wide view of the assessor's operations.

The amounts reflected in the General and Assessment Funds of Statements A thru C use the modified accrualbasis of accounting. Under the modified accrual basis of accounting, revenues are recognized whensusceptible to accrual (i.e., when they become both measurable and available). Measurable means the amountof the transaction can be determined and available means collectible within the current period or soon enoughthereafter to pay liabilities of the current period. The assessor considers all revenues available if they are

13



collected within 60 days after the fiscal year end. Expenditures are recorded when the related fund liability isincurred, except for interest and principal payments on general long-term debt which is recognized when due,and certain compensated absences and claims and judgments which are recognized when the obligations areexpected to be liquidated with expendable available financial resources. The governmental funds use thefollowing practices in recording revenues and expenditures:

Revenues

Advalorem taxes and related state revenue sharing are recorded in the year the taxes are assessed.Advalorem taxes are assessed on a calendar year basis, become due on November 15 of each year, andbecome delinquent on December 31. They are recorded when assessed.

Compensation for taxing bodies for preparation of tax rolls and notices is recorded in the yearadvalorem taxes are assessed. The compensation is generally received in January and February of theensuing year.

State Revenue Sharing authorized by Act 37 of 1994, is disbursed by the State Treasurer to the parishSheriff for distribution to the eligible taxing authorities. The Sheriff disburses the monies in threeannual payments to the Assessor and because no due date exists for receipt of these payments from theSheriff, they are recorded when received.

Interest income on time deposits is recorded when the time deposits have matured and the income isavailable.

Expenditures

Expenditures, including all salaries, office supplies, and capital outlay are generally recognized underthe modified accrual basis of accounting when the related fund liability is incurred.

Government-Wide Financial Statements (G\VFS)

The column labeled Statement of Net Assets (Statement A) and the column labeled Statement of Activities(Statement B and C) display information about the assessor as a whole. These statements include all thefinancial activities of the assessor. Information contained in these columns reflects the economic resourcesmeasurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses, assets andliabilities resulting from exchange or exchange-like transactions are recognized when the exchange occurs(regardless of when cash is received or disbursed). Revenues, expenses, gains, losses, assets and liabilitiesresulting from nonexchange transactions are recognized in accordance with the requirements of GASBStatement No. 33, Accounting and Financial Reporting for Nonexchange Transactions.

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Program Revenues - Program revenues included in the column labeled Statement of Activities (Statement B)are derived directly from the Assessor's users as a fee for services; program revenues reduce the cost of thefunction to be financed from the assessor's general revenues.

Reconciliation

The reconciliation of the items reflected in the funds columns to the Statement of Activities (Statements B andC) and Statement of Net Assets (Statement A) for the year ended December 31,2005 is as follows:

Statement A (Statement of Net Assets) - Fiscal Year Ending December 31,2005:

Unreserved Fund Balance - December 31, 2005Capital Assets, Net of Accumulated DepreciationElimination of Deferred Revenues - TaxesNet Assets of Governmental Activities - December 31, 2005

Amount$ 435,613

15,8574,850

$ 456,320

Statement B (Statement of Activities) - Fiscal Year Ending December 31,2005;

Net Change in Fund Balance - December 3 1 , 2005Add Capital Expenditures Reported on Governmental Fund StatementLess Depreciation Expense Reported for Governmental ActivitiesChange in Net Assets of Governmental Activities

Amount$ 43,597

2,097-5,734

$ 39,960

Statement B (Statement of Activities) - Fiscal Year Ending December 31,2004:

Net Change in Fund Balance - December 31, 2004Add Deferred Revenue-Advalorem Taxes Reported on Governmental ActivitiesAdd Capital Expenditures Reported on Governmental Fund StatementLess Depreciation Expense Reported for Governmental ActivitiesChange in Net Assets of Governmental Activities

Amount$ 20,399

4,85014,675-5,176

$ 34,748

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E. BUDGETS

The assessor uses the following budget practices:

The Assessor prepares a budget at the beginning of each calendar / fiscal year based upon prior yearexpenditures and anticipated revenues for the budget year. The proposed budget was prepared on the modifiedaccrual basis (GAAP) of accounting and was made available for public inspection. The Assessor formallyadopted the budget for 2005 on November 30, 2004. The budget was amended on September 30, 2005. Allappropriations lapse at year-end.

Formal budget integration (within the accounting system) is not employed as a management control device.During the fiscal year, the Assessor compares actual revenues and expenditures to budgeted revenues andexpenditures. If actual revenues are falling short of budgeted revenues by five percent or more or if actualexpenditures to date plus projected expenditures for the remainder of the year exceed the budgetedexpenditures by five percent or more, the original budget is amended by the Assessor. Budgeted amountsincluded in the accompanying financial statements include the original adopted budget and all subsequentamendments.

F. ENCUMBRANCES

There is no encumbrance accounting procedure used in this office.

G. CASH EQUIVALENTS AND INVESTMENTS

Cash includes amounts in demand deposits, interest-bearing demand deposits, and money market accounts.Cash equivalents include amounts in time deposits. Under state law, the assessor may deposit funds indemand deposits, interest-bearing demand deposits, money market accounts, or time deposits with state banksorganized under Louisiana law and national banks having principal offices in Louisiana.

Under state law, the assessor may invest in United States bonds, treasury notes, or certificates. These areclassified as investments if their original maturities exceed 90 days; however, if the original maturities are 90days or less, they are classified as cash equivalents. Investments are stated at cost.

H. INVENTORY

The St. Helena Parish Assessor utilizes the "purchase method" of accounting for supplies in the governmentalfunds whereby expendable operating supplies are recognized as expenditures when purchased. As a result, theSt. Helena Parish Assessor did not record any inventory at December 31,2005.

I. PREPAID ITEMS

None

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J. CAPITAL ASSETS

Capital assets are capitalized at historical cost or estimated cost if historical cost is not available. Donatedassets are recorded as capital assets at their estimated fair market value at the date of donation.

Capital assets are recorded in the Statement of Net Assets and Statement of Activities. Since surplus assets aresold for an immaterial amount when declared as no longer needed for public purposes, no salvage value istaken into consideration for depreciation purposes. All capital assets, other than land, are depreciated usingthe straight-line method over the following useful lives:

Description

FurnitureEquipmentVehicles

Estimated Lives

7 Years5 Years5 Years

K. COMPENSATED ABSENCES

The assessor has the following policy relating to vacation and sick leave:

All full-time employees earn annual leave based on years of service. Employees with three years or less ofservice earn ten days of annual leave each year. Employees with over three years of service earn fifteen daysof annual leave each year. An employee can accumulate and carry over up to ten days of annual leave.

Should an employee leave the employ of the Assessor's office prior to the completion of a year, that employeewill be paid for a maximum of twenty-five annual leave days based on time of service.

Each full-time employee of the St. Helena Parish Assessor's office shall accumulate one day of sick leave foreach month that they remain in the employ of the Assessor's office but not to exceed a cumulative total ofsixty days. Employees will not be paid for accumulated sick leave, and leave must be used for actual illness.

The Assessor's recognition and measurement criterion for compensated absences follows:

GASB Statement No. 16 provides that vacation leave and other compensated absences with similarcharacteristics should be accrued as a liability as the benefits are earned by the employees if both of thefollowing conditions are met:

i. The employees rights to receive compensation are attributable to services already rendered.

ii. It is probable that the employer will compensate the employees for the benefits through paid time offor some other means, such as cash payments at termination or retirement.

GASB Statement No. 16 provides that a liability for sick leave should be accrued using one of the followingtermination approaches:

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1. An accrual for earned sick leave should be made only to the extent it is probable that the benefits willresult in termination payments, rather than be taken as absences due to illness or other contingencies,such as medical appointments and funerals.

ii. Alternatively, a governmental entity should estimate its accrued sick leave liability based on the sickleave accumulated at the balance sheet date by those employees who currently are eligible to receivetermination payments as well as other employees who are expected to become eligible in the future toreceive such payments,

Only the current portion of the liability for compensated absences should be reported in the fund. The currentportion is the amount left unpaid at the end of the reporting period that normally would be liquidated withexpendable available financial resources.

No provision for accrued compensated absences is required at December 31, 2005, as the amount is notmaterial.

L. LONG-TERM OBLIGATIONS

The St. Helena Parish Assessor has no long-term obligations as of December 31,2005.

M. ESTIMATES

The preparation of financial statements is conformity with accounting principles generally accepted in theUnited States of America require management to make estimates and assumptions that affect the reportedamounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financialstatements and the reported amounts of revenues, expenditures, and expenses during the reporting period.Actual results could differ from those estimates.

2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

A. BUDGETARY INFORMATION

Annual budgets are adopted on a basis consistent with generally accepted accounting principles. Allannual appropriations lapse at year-end. See Note 1 regarding operating budgets. The Assessorcomplied with the local budget act.

B. DEPOSITS AND INVESTMENT LAWS AND REGULATIONS

In accordance with state law, all uninsured deposits of funds in financial institutions must be securedwith acceptable collateral valued at the lower market or par. As reflected in Note 3 regarding cash andcash equivalents, the Assessor complied with the deposits and investments laws and regulations.

C. DEFICIT FUND EQUITY

As of December 31, 2005, the Assessor did not have a deficit in fund equity.

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3. CASH EQUIVALENTS AND INVESTMENTS

At December 31, 2005, the Assessor has cash and cash equivalents (book balances) totaling $218,915 asfollows:

Demand DepositsInterest-Bearing Demand Deposits

TOTAL

$

$

-218,915218,915

The demand deposits are stated at cost, which approximates market. Under state law, these deposits (orresulting bank balances) must be secured by Federal deposit insurance or the pledge of securities owned by thefiscal agent bank. The market value of pledged securities plus the Federal deposit insurance must at all timesequal the amount on deposit with the fiscal agent. These securities are held in the name of the pledging fiscalagent bank in a holding or custodial bank that is mutually acceptable to both parties. At December 31, 2005,the Assessor had $218,915 in collected bank balances, and $-0- in a certificate of deposit, totaling $218,915.These deposits were secured from risk by $ 100,000 of Federal deposit insurance, and pledged securities of$118,915 held by the custodial bank in the name of the fiscal agent bank (GASB Category 3).

i

Even though the pledged securities are considered uncollateralized (Category 3) under the provisions of GASBStatement 3, Louisiana Revised Statute 39:1229 imposes a statutory requirement on the custodial bank toadvertise and sell the pledged securities within 10 days of being notified by the Assessor that the fiscal agenthas failed to pay deposited funds upon demand.

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4.


TAXABLE PROPERTIES AND LEVIED TAXES

Total taxable property valuation was $35,529,380 for the year ended December 31, 2005, an increase of$1,977,940 of property value from 2004. This increase is due to an increase in the total assessed value in theparish, primarily attributable to new businesses and business consolidations. The authorized millage of 7.46was levied in 2005, the same millage as levied in 2004. The following are the principal taxpayers (top ten) forthe parish:

Taxpayer

Transcontinental Gas PipelineDixie Electric Membership Corp.Florida Gas Transmission Co.Century Tel of East LAEntergy Gulf States, Inc.Soterra, LLCWeyerhaeuserCapline SystemAmerchol CorporationColonial Pipe Line Company

Business Type

Public UtilityPublic UtilityPublic UtilityPublic UtilityPublic UtilityTimber CompanyTimber CompanyPublic UtilityManufacturingTimber Company

$

$

2005Assessed

Valuation

5,461,1602,540,3202,236,2402,327,6401,723,1001,667,080

933,150858,840741,880865,680

19,355,090

Percentage ofTotal Assessed

Valuation

28.22%13.12%11.55%12.03%8.90%8.61%4.82%4.44%3.83%4.48%

100.00%

5. CAPITAL ASSETS

A summary of changes in capital assets for 2005 and 2004 follows:

Capital AssetsVehiclesOffice Furniture & EquipmentTotal Capital Assets

Less: Accumulated DepreciationTotal

$

$

Balance01/01/05

5,40075,79881,198

61,70419,494

$

$

Additions

-2,0972,097

5,734-3,637

$

$

Deletions

---

--

$

$

Balance12/31/05

5,40077.89583,295

67.43815,857

20



Capital AssetsVehiclesOffice Furniture & EquipmentTotal Capital Assets

Less: Accumulated DepreciationTotal

$

$

Balance01/01/04

5,40061,12366,523

56,5289,995

$

$

Additions

-14.67514,675

5.1769,499

$

$

Deletions

--

--

$

$

Balance12/31/04

5,40075/79881,198

61J0419,494

6. PENSION PLAN

Plan Description. Substantially all employees of the St. Helena Parish Assessor's office are members of theLouisiana Assessors' Retirement System (System), a cost-sharing, multiple-employer defined benefit pensionplan administered by a separate board of trustees.

All full-time employees who are under the age of 60 at the time of original employment and are not drawingretirement benefits from any other public retirement system in Louisiana are required to participate in theSystem. Employees who retire at or after age 55 with at least 12 years of credited service or at or after age 50with at least 30 years of credited service are entitled to a retirement benefit, payable monthly for life, equal to3% of their final-average salary for each year of credited service, not to exceed 100% of their final-averagesalary. Final-average salary is the employee's average salary over the 36 consecutive or joined months thatproduce the highest average. Employees who terminate with at least 12 years of service and do not withdrawtheir employee contributions may retire at or after age 55 and receive the benefit accrued to their date oftermination. The System also provides death and disability benefits. Benefits are established or amended bystate statute.

The System issues an annual publicly available financial report that includes financial statements and requiredsupplementary information for the System. That report may be obtained by writing to the Louisiana Assessors'Retirement System, Post Office Box 1786, Shreveport, Louisiana 71166-1786, or by calling (318) 425-4446.

Funding Policy. Plan members are required by state statute to contribute 7.0% of their annual covered salaryand the St. Helena Parish Assessor is required to contribute at an actuarially determined rate. The current rateis 14.0% of annual covered payroll. Contributions to the System also include one-fourth of 1% (1% forOrleans Parish) of the taxes shown to be collectible by the tax rolls of each parish, plus revenue sharing fundsappropriated by the legislature. The contribution requirements of plan members and the Parish Assessor areestablished and may be amended by state statute. As provided by R.S. 11:103, the employer contributions aredetermined by actuarial valuation and are subject to change each year based on the results of the valuation forthe prior fiscal year. The St. Helena Parish Assessor's contributions to the System for the years endingDecember 31, 2005, and 2004, were $24,068, and $22,893, respectively, equal to the required contributions foreach year.

21



7. ACCOUNTS, SALARIES, AND OTHER PAYABLES

Payables of $31,831 at December 31, 2005, consist of $4,662 accounts payable, $11,245 claims payable asnoted in Footnote 9, $4,497 payroll taxes payable, $4,850 deferred advalorem taxes, and $6,577 estimateduncollectible property taxes.

8. EXPENDITURES OF THE ASSESSOR NOT INCLUDED IN THE FINANCIALSTATEMENTS

The St. Helena Parish Police Jury pays all utility expenses for the Assessor's office and these expenses are notincluded in the accompanying financial statements. The St. Helena Parish Assessor has determined thisamount to be immaterial to the operation of the Assessor's office.

9. LIGITATION AND CLAIMS

The former St. Helena Parish Assessor, Chaney L. Phillips had filed a petition for additional compensation andwages in proceedings entitled Chaney L Phillips vs. Wesley Blades in his capacity as Assessor for St. HelenaParish bearing number 16,393 on the docket of the 21st Judicial District Court in and for the Parish of St.Helena. Chaney L. Phillips was seeking $7,266 plus legal interest from the date of the filing of this petition onJanuary 25, 1999 and all costs associated with the filing of this petition. A final determination was made on theamount due under the above court case and per determination by the U.S. District Court the liability for claimspayable at December 31, 2005, was adjusted to the amount paid by the Assessor's Office on May 19, 2006, of$11,245.

In a case not directly related to the above settlement, it was determined that restitution was due the Assessor'soffice by Chaney L. Phillips, in the amount of $33,223, as determined by the United States District Court inUnited States vs. Emerson C. Newman and Chaney L Phillips, on April 21, 1998. As of December 31, 2005,the Assessor's Office has received a total of $11,894 in restitution with a balance of $21,329 restitution stilldue the Assessor's Office. Because of the difficulty and uncertainty of predicting future payment amounts orfinal resolution, only the amount remaining as due is disclosed in these footnotes to the financial statements.

10. SUBSEQUENT EVENTS

There are no subsequent events as of the date of this report that would alter or materially affect thefinancial data disclosed in this report.

22

Required Supplemental Information - Part I

Budgetary Comparison Schedules

23


Budgetary Comparison ScheduleYear Ended December 31,2005

Schedule la



ExpendituresSalaries and Related BenefitsLegal and AccountingInsuranceOffice Supplies and ExpenseCapital OutlayTravel

Total Expenditures


Fund Balance - Beginning of Year

Fund Balance - End of Year

OriginalBudget

250,295 $20,000

6,5002,500

279,295

220,406-

1,45021,900

-1,000

244,756

34,539

392,016

426,555 $

FinalBudget

235,200 $20,000

7,5002,900

265,600

220,295-

1,52120,900

-250

242,966

22,634

392,016

414,650 $

2005Actual

258,47419,0517,4353,384

288,344

220,0134,2501,571

16,5822,097

234244,747

43,597

392,016

435,613

VarianceFavorable

(Unfavorable)

$ 23,274(949)

(65)484

22,744

282(4,250)

(50)4,318

(2,097)16

0,781)

20,963

.

$ 20,963

See independent auditor's report.

24


Budgetary Comparison ScheduleYear Ended December 31,2004

Schedule Ib



ExpendituresSalaries and Related BenefitsLegal and AccountingInsuranceOffice Supplies and ExpenseRepairs and MaintenanceCapital OutlayTravel

Total Expenditures


Fund Balance - Beginning of Year

Fund Balance - End of Year

OriginalBudget

238,134 $20,163

6,5004,324

269,121

207,3714,0001,442

16,217-

5,600450

235,080

34,041

371,617

405,658 $

FinalBudget

238,134 $20,163

6,5004,324

269,121

209,4494,0001,442

16,217-

14,000450

245,558

23,563

371,617

395,180 $

2004Actual

232,64620,048

6,3445,567

264,605

209,6744,0001,4425,1818,611

14,675623

244,206

20,399

371,617

392,016

VarianceFavorable

(Unfavorable)

$ (5,488)(115)(156)1,243

(4,516)

(225)--

11,036(8,611)

(675)(173)

1,352

(3,164)

,

$ (3,164)

See independent auditor's report.

25

Other Independent Auditor's Reportsand Findings and Recommendations

26


Schedule 2Summary Schedule of Prior Year Audit Findings

For the Year December 31,2005

Section I - Internal Control and Compliance Material to the Financial Statements

No Findings for Section I.

Section n - Internal Control and Compliance Material to Federal Awards

Not Applicable.

Section HI - Management Letter

No Findings for Section III.

(Concluded)

27


Schedule 3Corrective Action Plan for Current Year Audit Findings

For the Year December 31,2005

Section I - Internal Control and Compliance Material to the Financial Statements

No Findings for Section I.

Section IE-Internal Control and Compliance Material to Federal Awards

Not Applicable.

Section D3 - Management Letter

No findings for Section III.

(Concluded)

28

Bruce C. Harrell, CPA

Dale H. Jones, CPA

INTERNET IVH !• II FAX: (985);

www.teamcpa.com

MEMBERSAmerican Institute of CPAs B R u C E H A R R E L L P.O. Box 45 - 909 Avenue GSociety of Louisiana CPAs ,«. C o M P AJi_Y Kentwood, LA 70444

' certified Public A™*!*™ VOICE: (985) 229-5955FAX: (985) 229-5951

REPORT ON COMPLIANCE AND ON THE INTERNAL CONTROL OVER FINANCIALREPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Honorable Wesley BladesSt. Helena Parish AssessorGreensburg, Louisiana

We have audited the financial statements of the St. Helena Parish Assessor, Greensburg, Louisiana, as of andfor the two years ended December 31, 2005, which collectively comprise the Assessor's basic financialstatements and have issued our report thereon dated June 23, 2006. We conducted our audit in accordancewith auditing standards generally accepted in the United States of America and the standards applicable tofinancial audits contained in Government Auditing Standards, issued by the Comptroller General of the UnitedStates.

Compliance

As part of obtaining reasonable assurance about whether the Assessor's financial statements are free ofmaterial misstatement, we performed tests of the Assessor's compliance with certain provisions of laws,regulations, contracts, and grants, noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of our audit and accordingly, we do not express such an opinion. The resultsof our test disclosed no instances of noncompliance that are required to be reported under GovernmentAuditing Standards.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the St. Helena Parish Assessor's internal control overfinancial reporting in order to determine our auditing procedures for the purpose of expressing our opinion onthe financial statements and not to provide assurance on the internal control over financial reporting. Ourconsideration of the internal control over financial reporting would not necessarily disclose all matters in theinternal control that might be material weaknesses. A material weakness is a condition in which the design oroperation of one or more of the internal control components does not reduce to a relatively low level the riskthat misstatements in amounts that would be material in relation to the financial statements being audited mayoccur and not be detected within a timely period by employees in the normal course of performing theirassigned functions. We noted no matters involving the internal control structure over financial reporting thatwe consider to be material weaknesses.

29

BRUCE HARRELL & COMPANYCERTIFIED PUBLIC ACCOUNTANTSA Professional Accounting Corporation

To the Honorable Wesley BladesSt. Helena Parish AssessorPage 2

This report is intended for the information of management, the Legislative Auditor and federal awardingagencies and pass-through entities. However this report is a matter of public record and its distribution is notlimited.

Bruce Harrell & Company, CPAsA Professional Accounting Corporation

June 23,2006

30

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