mary jo finley, cfa, inc.app1.lla.la.gov/publicreports.nsf/e6473b7353fd... · financial activities...

DISTRICT ATTORNEY OF THESEVENTH JUDICIAL DISTRICT

Parishes of Catahouta and Concordia, Louisiana

Annual Financial StatementsWith Independent Auditor's Report

As of and for the Year EndedDecember 31,2007

With Supplemental Information Schedules

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

••rn1 e—\

MARY JO FINLEY, CFA, INC.A PROFESSIONAL CORPORATION


Parishes of Catahoula and Concordia, Louisiana

Annual Financial StatementsWith Independent Auditor's Report

As of and for the Year Ended December 31,2007With Supplemental Information Schedules

C O N T E N T S

Statement Page No.

Independent Auditor's Report 3

Required Supplemental Information (Part I)

Management's Discussion and Analysis 6

Basic Financial Statements

Government-Wide Financial Statements:

Statement of Net Assets A 11

Statement of Activities B 12

Fund Financial Statements:

Governmental Funds:

Balance Sheet C 13

Reconciliation of the Governmental Funds Balance Sheet toThe Financial Statement of Net Assets 14

Statement of Revenues, Expenditures, and Changes inFund Balances D 15

-1-

DISTRICT ATTORNEY OF THESEVENTH JUDICIAL DISTRICTParishes of Catahoula and Concordia, Louisiana

Contents, December 31, 2007

Statement Page No.C O N T E N T S (CONTD.)

Reconciliation of the Governmental Funds Statement of Revenues,Expenditures, and Changes in Fund BalancesTo the Statement of Activities 16

Fiduciary - Agency Funds:

Statement of Fiduciary Net Assets E 17

Notes to the Financial Statements 18

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

Budget Comparison Schedule 1 31

Note to Budgetary Comparison Schedule 33

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 36

Schedule of Audit Findings 2 38

Summary Schedule of Prior Audit Findings 3 39

Agency Corrective Action Plan 40

-2-

Member American MARY JO FINLEY, CPA, INC. Member Society ofInstitute of Certified 7 7 I^nisiann CertifiedPublic Accountants A PROFESSIONAL CORPORATION P^bbc AccounteiS

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

Independent Auditor's Report

HONORABLE JOHN JOHNSONDISTRICT ATTORNEY OF THE

SEVENTH JUDICIAL DISTRICTParishes of Catahoula and Concordia, Louisiana

I have audited the basic financial statements of the District Attorney of the Seventh Judicial District, acomponent unit of the Concordia Parish Police Jury, as of December 31,2007, and for the year then ended,as listed in the table of contents. These financial statements are the responsibility of the District Attorneyof the Seventh Judicial District's management. My responsibility is to express an opinion on these financialstatements 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 Seventh Judicial District as of December 31,2007, and thechanges in its financial position for the year then ended in conformity with U.S. generally acceptedaccounting principles.

Management's discussion and analysis, and supplementary information on pages 6 through 9 and 31 through33, 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.

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 Seventh 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.

-3-

Practice Limited to Governmental Accounting, Auditing and Financial Reporting


Concordia Parish, LouisianaIndependent Auditor's Report,

December 31,2007

In accordance with Government Auditing Standards, I have also issued a report dated June 18,2008, on theDistrict Attorney of the Seventh 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 of anaudit performed in accordance with Government Auditing Standards and should be read in conjunction withthis report in considering the results of my audit.

West Monroe^LouisianaJune 18, 2008

-4-

REQUIRED SUPPLEMENTARY INFORMATIONPARTI

-5-

District Attorney of the Seventh Judicial DistrictParishes of Catahoula and Concordia, Louisiana

Management's Discussion and AnalysisDecember 31,2007

As management of the District Attorney of the Seventh Judicial District, I offer readers of the DistrictAttorney of the Seventh Judicial District's financial statements this narrative overview and analysis of thefinancial activities of the District Attorney of the Seventh Judicial District for the fiscal year endedDecember 31, 2007. 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.

Government-wide financial statements. The government-widefinancialstatements are designed to providereaders with a broad overview of the District Attorney of the Seventh Judicial District's finances, in amanner similar to a private-sector business.

The statement of net assets presents information on all of the District Attorney of the Seventh 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 Seventh 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 theSeventh Judicial District, like other state and local governments, uses fund accounting to ensure anddemonstrate compliance with finance-related legal requirements. All of the funds of the District Attorneyof the Seventh Judicial 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 Seventh 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 theSeventh 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 SeventhJudicial District'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 Seventh Judicial Districtexceeded liabilities by $33,976. The District Attorney of the Seventh Judicial District's net assets reflectsits investment in capital assets (e.g., equipment), less any related debt used to acquire those assets that isstill outstanding is more than the total net assets. These assets are not available for future spending.

-7-

An additional portion of the District Attorney of the Seventh Judicial District's net assets representsresources that are subject to external restrictions (e.g., debt service). The balance in unrestricted net assetsis affected by two factors: 1) resources expended, over time, by the District Attorney of the SeventhJudicial District to acquire capital assets from sources other than internally generated funds (i.e., debt),and 2) required depreciation on assets.

STATEMENT OF NET ASSETSGovernmental Funds

2007 2006

ASSETSCash and cash equivalents $49,258 $12,690Receivables 29,521 22,587Capital assets (net of accumulated depreciation) 52,867 50,452

TOTAL ASSETS S131.646 $85.729

LIABILITIESAccounts payable $ 18,692 $ 10,258Payroll withholdings payable 21,055 21,470Bank loan payable 15,000Deferred revenues 2,083Lease payable 7,943 14,830Deposit due others 32,897 20.147

TOTAL LIABILITIES 97.670 66,705

NET ASSETSInvested in capital assets, net of related debt 44,924 35,622Unrestricted (10,948) (16,598)

TOTAL NET ASSETS $33,976 $19,024

STATEMENT OF ACTIVITIESJudicial: 2007 2006

Personal services $439,491 $470,280Operating services 83,371 89,155Materials and supplies 18,848 23,671Travel 13,437 16,976Intergovernmental 727 4,182Depreciation expense 15,432 14,615Interest expense 767 1,102

Total Program Expenses 572,073 619.981Program revenues:

Charges for services 337,455 353,805Commissions on fines and forfeitures 26,236 49,824Operating grants and contributions 213,505 184,464

Total program revenues 577,196 588,093Net Program Expenses 5,123 (31,888)

General revenuesOther 12,629 2Special item - loss on sale of assets (2,800) (3,815)

Change in Net Assets 14,952 (35,701)Net Assets - Beginning of year 19,024 54,725Net Assets - End of year $33,976 $19,024

Financial Analysis of the Government's Funds

As noted earlier, the District Attorney of the Seventh Judicial District uses fund accounting to ensure anddemonstrate compliance with finance-related legal requirements. The focus of the governmental funds isto 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 fiscal year.

As of December 31, 2007, combined governmental fund deficit balance of ($10,948) showed an increaseof $5,650 over December 31,2006. The General Fund's portion of the unreserved, undesignated fund deficitof ($27,897) shows an increase (of approximately $4,068) from the prior year amount.

General Fund Budgetary Highlights

Increases in revenues of the General Fund original budget and the final budget were due to increases in fees,charges, and commissions for services, transfers in, and other revenues and a decrease in commissions onfines and forfeitures. Differences between expenditures of the General Fund original budget and the finalbudget were due primarily to an increase in operating services and transfers out.

Capital Asset and Debt Administration

Capital assets. The District Attorney of the Seventh Judicial District's investment in capital assets forits governmental activities as of December 31, 2007, amounts to $52,867 (net of accumulateddepreciation). This investment includes furniture and equipment. The increase in capital assets was$20,647. There were deletions of $7,000 for the year.

Long-term debt. The District Attorney of the Seventh Judicial District has debt outstanding of $7,943consisting of a lease payable.

Requests for Information

This financial report is designed to provide a general overview of the District Attorney of the SeventhJudicial District's finances for all those with an interest in the government's finances. Questionsconcerning any of the information provided in this report or requests for additional financial informationshould be addressed to the District Attorney of the Seventh Judicial District, Courthouse Building,Vidalia, LA 71373.

-9-

BASIC FINANCIAL STATEMENTS

-10-

Statement ADistrict Attorney of the Seventh Judicial DistrictParishes of Catahoula and Concordia, Louisiana

Governmental ActivitiesStatement of Net Assets

December 31,2007

AssetsCash and cash equivalentsReceivablesCapital assets (net)

Total AssetsLiabilitiesAccounts payablePayroll withholding payableBank loan payableDeferred revenuesLease payableDeposits due others

Total LiabilitiesNet AssetsInvested in capital assets, net of related debtUnrestricted

Total Net Assets

$49,25829,52152,867

$131,646

$18,69221,05515,0002,0837,943

32,897

$97,670

$44,924(10,948)

$33,976

See accompanying notes to basic financial statements.

-11-

Statement BDistrict Attorney of the Seventh Judicial DistrictParishes of Catahoula and Concordia, Louisiana

STATEMENT OF ACTIVITIESDecember 31,2007

EXPENSESJudicial:

Personal servicesOperating servicesMaterials and suppliesTravelIntergovernmentalDepreciation expenseInterest expense

Total Program Expenses

REVENUESProgram revenues:

Charges for servicesCommissions on fines and forfeituresOperating grants and contributions

Total program revenuesNet Program Expenses

General revenuesOtherSpecial item - loss on sale of assets

Change in Net AssetsNet Assets - Beginning of yearNet Assets - End of year

$439,49183,37118,84813,437

72715,432

767572,073

337,45526,236

213,505577,196

5,123

12,629(2,800)14,95219,024

$33,976

The accompanying notes are an integral part of this statement.

-12-

Statement CDISTRICT ATTORNEY OF THESEVENTH JUDICIAL DISTRICT

Parishes of Catahoula andConcordia, Louisiana

GOVERNMENTAL FUNDS

Combined Balance Sheet, December 31, 2007

ASSETSCashReceivablesDue from:

General fundIV-D

TOTAL ASSETS

LIABILITIES ANDFUND EQUITY

Liabilities:Accounts payablePayroll deductions payableBank loan payable

Due to:General fundIV-D

Deferred revenueDeposits due others

Total LiabilitiesFund Equity:

Fund balance -unreserved - undesignatedTotal Fund Equity

TOTAL LIABILITIESAND FUND EQUITY

...MAJOR FUNDS...IV-D

SPECIALGENERAL REVENUE

FUND FUND

$38,24115,886

670

$11,01713,635

738

TOTAL

$49,25829,521

738670

$54,797 $25,390 $80,187

$18,46413,51215,000

7382,08332,89782,694

(27,897)(27,897)

$2287,543

670

8,441

16,94916,949

$18,69221,05515,000

670738

2,08332,89791,135

(10,948)(10,948)

$54,797 $25,390 $80,187

See accompanying notes and accountant's compilation report.

-13-


Reconciliation of Governmental FundsBalance Sheet to the Statement of Net Assets

For the Year Ended December 31, 2007

Total Fund Balance at December 31 Governmental Funds (Statement C) ($10,948)

Cost of capital assets $171,940Less: Accumulated depreciation (119,073) 52,867

Long term liabilities at December 31:Lease payable (7,943)

Net Assets at December 31 (Statement A) $33,976


-14-

Statement DDistrict Attorney of the Seventh Judicial DistrictParishes of Catahoula and Concordia, Louisiana

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


REVENUESIntergovernmental revenues:

Federal grantsState grants

Fees, charges, and commissions for servicesCommissions on fines and forfeituresOther revenues

Total revenues

EXPENDITURESCurrent:

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

IntergovernmentalDebt serviceCapital outlay

Total expendituresExcess (deficiency) of revenues

over expenditures

Other Financing Sources (Use)Transfer inTransfer out

Excess (deficiency) of revenues and other sourcesover expenditures and other use

FUND BALANCES (Deficit) - BEGINNING

FUND BALANCES (Deficit) - ENDING

....Major Funds....

General IV-D Total

$25,000330,75526,23612,629394,620

243,81774,50316,60610,398727

7,65420,647374,352

20,268

29,500(45,700)

4,068

(31,965)($27,897)

$188,505

6,700

195,205

195,6748,8682,2423,039

209,823

(14,618)

45,700(29,500)

1,582

15,367

$16,949

$188,50525,000337,45526,23612,629589,825

439,49183,37118,84813,437727

7,65420,647584,175

5,650

75,200(75,200)

5,650

(16,598)

($10,948)

See accompanying notes to basic financial statements.

-15-


Reconciliation of Governmental FundsStatement of Revenue, Expenditures, and Changes

in Fund Balances to the Statement of Activities


Total net change in fund balances - governmental funds (Statement D) $5,650

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

Capital outlays are reported in governmental funds as expenditures. However, in the statement ofActivities, the cost of those assets is allocated over their estimated useful lives as depreciation expense.This is the amount by which capital outlays exceed depreciation for the period. 5,215

Governmental funds do not report gain or loss on disposition of assets. In the Statement of Activities,loss on disposition of assets decreased when the asset is disposed. (2,800)

Repayment of lease principal is an expenditure in the governmental funds, but the repayment reduceslong-term liabilities in the Statement of Net Assets 6,887

Change in net assets of governmental activities (Statement B) $14,952


-16-

Statement EDistrict Attorney of the Seventh Judicial DistrictParishes of Catahoula and Concordia, Louisiana

Statement of Fiduciary Net Assets - Agency Fund

December 31,2007

SPECIAL WORTHLESSASSET CHECK

FORFEITURE FUND TOTAL

ASSETSCash and cash equivalents $943 $31,025 $31,968

LIABILITIESDeposits due others $943 $31,025 $31,968


-17-


Notes to the Financial StatementsAs of and for the Year Ended December 31, 2007

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 Catahoula and Concordia, Louisiana.

The accompanying financial statements of the District Attorney of the Seventh 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. The accompanyingbasic financial statements have been prepared in conformity with GASB Statement 34, Basic FinancialStatements-and Management's Discussion and Analysis -for State and Local Governments, issued in June1999.

A. REPORTING ENTITY

As the governing authority of the parish, for reporting purposes, the Concordia Parish PoliceJury is the financial reporting entity for Concordia 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.Governmental Accounting Standards Board (GASB) Statement No. 14 established criteria fordetermining which component units should be considered part of the Concordia Parish PoliceJury for financial reporting purposes. The basic criterion for including a potential componentunit within the reporting entity is financial responsibility. The GASB has set forth criteria tobe 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 or imposespecific financial burdens on the district attorney.

-18-


Parishes of Catahoula and Concordia, LouisianaNotes to the Financial Statements (Continued)

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 unit ofthe Concordia Parish Police Jury, the financial reporting entity. The accompanying financialstatements present information only on the funds maintained by the district attorney and do notpresent information on the police jury, the general government services provided by thatgovernmental unit, or the other governmental units that comprise the Concordia Parishfinancial reporting entity.

B. BASIC FINANCIAL STATEMENTS - GOVERNMENT-WIDE STATEMENTS

The district attorney's basic financial statements include both government-wide (reporting thedistrict attorney as a whole) and fund financial statements (reporting the district attorney'smajor funds). Both government-wide and fund financial statements categorize primaryactivities as either governmental or business type. All activities of the district attorney areclassified as governmental.

The district attorney reports the following major governmental funds:

The General Fund is the district attorney's primary operating fund. It accounts for allfinancial resources of the general government, except those required to be accountedfor 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.

-19-



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.

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.

-20-



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 asopposed to proprietary funds where the focus of attention is on recovering the cost ofproviding services to the public or other agencies through service charges or user fees. Thedistrict attorney's current operations require the use of only governmental funds. Thegovernmental fund types used 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.

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.

-21-



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.,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:

-22-



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:

EstimatedDescription Lives

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

F. VACATION AND SICK LEAVE

Employees of the district attorney's office receive from 5 to 15 days of non-cumulativevacation leave each year, depending on their length of service. Each employee is allowed 10

-23-



days of sick leave each calendar year. There is no limit on the amount of sick leave that anemployee can accumulate. However, at retirement or termination, the employee forfeits allunused sick leave.

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 31,2007.

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, 2007, the district attorney has cash and cash equivalents (book balances)totaling $81,226.

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 31,2007, total $105,021 and are fully secured by federal deposit insurance.

2. RECEIVABLES

The following is a summary of receivables at December 31, 2007:

Title IV-DSpecial

General RevenueFund Fund Total

Intergovernmental revenues: Federal - Departmentof Health and Human Services $13,635 $13,635

Fees, charges and commissions, etc. $15,886 15,886Total $15,886 $13,635 $29,521

-24-



3. DUE TO/FROM OTHER FUNDS

The following presents interfund balances due from and to other funds at December 31, 2007.

Due from Due toOther OtherFunds Funds

General Fund $670 $738Title IV-D 738 670

Total $1,408 $1,408

4. CHANGES IN CAPITAL ASSETS

A summary of changes in office equipment follows:

Balance, January 1, 2007 $158,293Additions 20,647Deletions (7,000)

Balance at December 31, 2007 171,940

Less accumulated depreciation (119,073)

Net capital assets $52,867

5. PENSION PLAN

The district attorney and assistant district attorneys of the Seventh 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 age55, 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.

-25-



For members who joined 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 3.5 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 maybe 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 Seventh Judicial Districts' contributions to the System for the year ending December 31,2007,2006and 2005 were $1,218, $3,817 and $3,569, respectively. There were no required contributions for the lasttwo quarters in 2007.

Substantially all other employees of the Seventh Judicial district are members of the Parochial EmployeesRetirement System of Louisiana (System), a cost-sharing, multiple-employer defined benefit pension planadministered by a separate board of trustees. The System is composed of two distinct plans, Plan A and PlanB, with separate assets and benefit provisions. All employees of the district attorney are members of PlanA.

All permanent employees working at least twenty-eight hours per week who are paid wholly or in partfrom parish funds and all elected parish officials are eligible to participate in the System. Under Plan A,employees who retire at or after age 60 with at least 10 years of creditable service, at or after age 55 withat least 25 years of creditable service, or at any age with at least 30 years of creditable service are entitledto a retirement benefit, payable monthly for life, equal to 3 per cent of their final average salary for eachyear of creditable service. However, for those employees who were members of the supplemental planonly before January 1, 1980, the benefit is equal to one per cent of final average salary plus $24 for eachyear of supplemental-plan-only service earned before January 1, 1980, plus 3 per cent of final-average

-26-



salary for each salary for each year of service credited after the revision date. Final average salary is theemployees' average salary over the 36 consecutive or joined months that produce the highest average.Employees who terminate with at least the amount of creditable service stated above, and do not withdrawtheir employee contributions, may retire at the ages specified above and receive the benefits accrued totheir date of termination. The system also provides death and disability benefits. Benefits are establishedor 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 ParochialEmployees' Retirement System of Louisiana, Post Office Box 14619, Baton Rouge, Louisiana 70898-4619, or by calling (504) 928-1361.

Under Plan A, members are required by state statute to contribute 9.50 per cent of their annual coveredsalary and the Seventh Judicial District is required to contribute at an actuarially determined rate. Thecurrent rate is 13.25 per cent of annual covered payroll. Contributions to the system also include one-fourth of one per cent (except Orleans and East Baton Rouge Parishes) of the taxes shown to be collectibleby the tax rolls of each parish. These tax dollars are divided between Plan A and Plan B basedproportionately on the salaries of the active members of each plan. The contribution requirements of planmembers and the Seventh Judicial District are established and may be amended by state statute. Asprovided 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 Seventh Judicial Districts' contributions to the System under Plan A for the years ending December31, 2007, 2006, and 2005, were $29,964, $30,778, and $29,063, respectively, equal to the requiredcontributions for each year.

6. 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 31,2007, is comprised of a lease-purchaseagreement for the purchase of a 2004 Ford Expedition, entered into on January 14,2004, due in 60 monthlyinstallments of $632 through January, 2009, with an interest rate of 6.00 per cent per annum.

The following is a summary of future minimum lease payments, together with the present value of the netminimum lease payments, as of December 31, 2007:

Year20082009

Total minimum lease payments

Principal$7,311

632$7,943

Interest$277

2$279

Total$7,588

634$8,222

-27-



7. CHANGES IN GENERAL LONG-TERM OBLIGATIONS

The following is a summary of changes in long-term obligation transactions for the year ended December31,2007:

Long-term obligations at January 1, 2007 $14,830Additions NONEDeductions (6,887)

Long-term obligations at December 31, 2007 $7,943

8. CHANGES IN AGENCY FUND BALANCES

A summary of changes in unsettled deposits due to others for the year ended December 31,2007, follows:

Balance, January 1, 2007 $17,609Additions 240,081Reductions (225,722)

Balance, December 31,2007 $31,968

9. LITIGATION AND CLAIMS

At December 31, 2007, the district attorney is not involved in any litigation, nor is he aware of anyunassorted claims.

10. 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.

11. FUND DEFICITS

At December 31, 2007, the General Fund has a deficit fund balance of $27,897. The deficit will beeliminated by reducing expenditures.

-28-



12. FEDERAL FINANCIAL ASSISTANCE

For the year ended December 31,2007, the district attorney participated in the following federal financialassistance programs:

FEDERAL GRANTOR/PASS-THROUGH GRANTOR NAME/

PROGRAM TITLE

PASS-THROUGHGRANTOR'S

NUMBERCFDA

NUMBER EXPENDITURES

UNITED STATES DEPARTMENTHEALTH AND HUMAN SERVICESPassed through Louisiana Department of Social

Services - Child Enforcement Title IV-D 509089 13.783 $188,505

-29-

Required Supplemental Information (Part II)

-30-

Schedule 1District Attorney for the 7th Judicial District

Parishes of Catahoula and Concordia, LouisianaBudgetary Comparison Schedule - General Fund


RevenuesIntergovernmental revenues - state funds

Department of Social ServicesFees, charges and commissions for servicesCommissions on fines and forfeituresOther revenues

Total revenues

ExpendituresCurrent:


IntergovernmentalDebt serviceCapital outlay

Total expenditures

Excess (Deficiency) of Revenuesover Expenditures

Other Financing Sources (Use)Proceeds from sale of assetsTransfer inTransfer out

Total Other Financing Sources (Use)

Excess (Deficiency) of Revenues and OtherSource over Expenditures and Other Use

Fund Balance - BeginningFund Balance - Ending

Budgeted Amounts

Variance WithFinal Budget

Original

$25,000240,00035,0002,000

302,000

247,62534,17515,00010,000

2001,000

20,000328,000

(26,000)

38,000(12,000)26,000

NONE

NONENONE

Final

$25,000274,000

18,0006,000

323,000

247,12544,00012,00010,00023,000

1,00018,875

356,000

(33,000)

60,000(27,000)33,000

NONE

NONENONE

Actual

$25,000330,75526,23612,629

394,620

243,81774,50316,60610,398

7277,654

20,647374,352

20,268

29,500(45,700)(16,200)

4,068

(31,965)($27,897)

(Negative)

$56,7558,2366,629

71,620

3,308(30,503)(4,606)

(398)22,273(6,654)(1,772)

(18,352)

53,268

(30,500)(18JOO)(49,200)

4,068

(31,965)($27,897)

(Continued)

-31-

Schedule 1District Attorney for the 7th Judicial District


Budgetary Comparison ScheduleIV-D Fund


RevenuesIntergovernmental revenues - FederalFees, charges, and commissions for services

Total revenues

ExpendituresCurrent:


Total expendituresExcess of Revenues

over ExpendituresOther Financing Source (Use)

Transfer inTransfer out

Excess of Revenues and other Sourceover Expenditures and other Use

Fund Balance - BeginningFund Balance - Ending

Budget

$188,5056,700

195,205

195,6748,8682,2423,039

1,582

15,367

Actual

$188,5056,700

195,205

195,6748,8682,2423,039

209,823 209,823

(14,618) (14,618)

45,700 45,700(29,500) (29,500)

1,582

15,367$16,949 $16,949

Variance WithFinal Budget

Positive (Negative)

NONE

NONE

NONENONE

(Concluded)

-32-

District Attorney for the 7th Judicial DistrictParishes of Catahoula and Concordia, Louisiana

Required Supplementary InformationBudgetary Comparison Schedules for Major Funds

For the Year Ended December 31,2007

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.

-33-

REPORTS REQUIRED BYGOVERNMENT AUDITING STANDARDS

PART III

-34-

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.

-35-

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 71291

Phone (318) 329-8880 - Fax (318) 329-8883

Report on Internal Control Over FinancialReporting and on Compliance and Other Matters

Based on an Audit of Financial Statements Performedin Accordance Government Auditing Standards

HONORABLE JOHN JOHNSONDISTRICT ATTORNEY OF THESEVENTH JUDICIAL DISTRICT


I have audited the basic financial statements of the District Attorney of the Seventh Judicial District as ofand for the year ended December 31, 2007, and have issued my report thereon dated June 18, 2008. Iconducted 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.

Internal Control Over Financial ReportingIn planning and performingmy audit, I considered District Attorney of the Seventh Judicial District's internalcontrol over financial reporting as a basis for designing my auditing procedures for the purpose ofexpressing my opinion on the basic financial statements, but not for the purpose of expressing an opinionon the effectiveness of the District Attorney of the Seventh Judicial District's internal control over financialreporting. Accordingly, I do not express an opinion on the effectiveness of the District Attorney of theSeventh Judicial District's internal control over financial reporting.

A control deficiency exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent or detect misstatementson a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies,that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliablyin accordance with generally accepted accounting principles such that there is more than a remote likelihoodthat a -misstatement of the District Attorney of the Seventh Judicial District's financial statements that ismore than inconsequential will not be prevented or detected by the District Attorney of the Seventh JudicialDistrict's internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results inmore than a remote likelihood that a material misstatement of the financial statements will not be preventedor detected by the District Attorney of the Seventh Judicial District's internal control.

-36-

Practice Limited to Governmental Accounting, Auditing and Financial Reporting

DISTRICT ATTORNEY OF THESeventh JUDICIAL DISTRICT

Parishes of Catahoula and Concordia, LouisianaIndependent Auditor's Report on Compliance

And Internal Control Over Financial Reporting, etc.December 31,2007

My consideration of internal control over financial reporting was for the limited purpose described inthe first paragraph of this section and would not necessarily identify all deficiencies in internal controlthat might be significant deficiencies or material weaknesses. I did not identify any deficiencies ininternal control over financial reporting that I consider to be material weaknesses, as defined above.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether District Attorney of the Seventh JudicialDistrict's basic financial statements are free of material misstatement, I performed tests of its compliancewith certain provisions of laws, regulations, contracts and grants, noncompliance with which could havea direct and material effect on the determination of financial amounts. However, providing an opinionon compliance with those provisions was not an objective of my audit and, accordingly, I do not expresssuch an opinion. The results of my tests disclosed one instance of noncompliance or other matters thatis required to be reported under Government Auditing Standards and is included as finding 07-01 in theaccompanying schedule of audit findings..

This report is intended solely for the information and use of the District Attorney of the Seventh JudicialDistrict, management, and the Legislative Auditor and is not intended to be and should not be used byanyone other than these specified parties. Although the intended use of these reports may be limited,under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a publicdocument.

West Monroe^ouisianaJune 18, 2008

-37-

Schedule 2

DISTRICT ATTORNEY OF THE SEVENTHJUDICIAL DISTRICT


Schedule of Audit FindingsFor the Year Ended December 31, 2007

A. SUMMARY OF AUDIT RESULTS

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

2. One instance of noncompliance material to the financial statements of District Attorneyof the Seventh Judicial District was disclosed during the audit.

3. No significant deficiencies relating to the audit of the financial statements are reportedin the Independent Auditor's Report on Internal Control.

B. FINDINGS - FINANCIAL STATEMENTS AUDIT

Finding 07-01 Need to Comply with Louisiana Local Government Budget Act

Finding: The district attorney's office did not comply with the LocalGovernment Budget Act. LS A-R.8.39:1310-1311 requires, among otherthings, that the district attorney's office amend an individual fund'sbudget when actual revenues and other sources to date plus projectedamounts to year-end are failing to meet budgeted amounts by five percentor more and/or when actual expenditures and other uses to date plusprojected amounts to year-end are exceeding budgeted amounts by fivepercent or more. The General Fund actual expenditures and other usesexceeded budgeted amounts by approximately 10%.

Recommendation: I recommend that the district attorney comply withall the requirements of the Louisiana Local Government Budget Act.Also, the district attorney should amend each budget as required by thestatutes.

-38-

Schedule 3

DISTRICT ATTORNEY OF THE SEVENTHJUDICIAL DISTRICT


Summary Schedule of Prior Audit FindingsFor the Year Ended December 31, 2007

There were no audit findings reported in the audit for the year ended December 31,2006.

-39-

ASSISTANTSBradley R. Burger

Ronnie Q McMillinChristopher Boothe

John C. ReevesKarla Shirley-McHand

4001 Carter StreetSuite 9

Vldalia, LA 71373

June 18,2008

Office oftfie ^District AttorneySeventh (udicial District

Catahouta and Concordla Parishes

John rf. JofinsonDistrict Attorney

DISTRICT DIRECTORPaul Scott

INVESTIGATORSJohn Loomls

Hugh Matthews

318-336-5526318-336-5412

Fax: 318-336-9790

Office of Legislative AuditorState of LouisianaP. 0. Box 94397Baton Rouge, LA 70804-9397

RE: 7th Judicial District Attorney2007 Audit

Dear Sir:

In response to the budget findings in our 2007 audit, please be advised that the budget willbe maintained and amended as needed.

Should you have any questions, please do not hesitate to call me.

onDistrict AttorneyJFJ/lc

mary jo finley, cfa, inc.app1.lla.la.gov/publicreports.nsf/e6473b7353fd... · financial activities...

Documents