DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICIAL … · That report is an integral part of an audit...

DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICIAL DISTRICT OBERLIN, LOUISIANA

A COMPONENT UNIT OF THE ALLEN PARISH POLICE JURY

ANNUAL FINANCLVL STATEMENTS

As of and for the Year Ended December 31,2009

icier provisions of state iaw, this report is a puu,.. document.Acopyofthe report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the LegislativeAuditor and, where appropriate, at the office ofthe parish clerk of court.

Release Date 1 )U [O

CONTENTS

Page

INDEPENDENT AUDITOR'S REPORT 3

BASIC FINANCL\L STATEMENTS:

GOVERNMENT-WIDE FINANCIAL STATEMENTS:

Statement ofNet Assets 6

Statement of Activities 7

FUND FINANCIAL STATEMENTS:

Governmental Funds:

Balance Sheet 9

Reconciliation ofthe Balance Sheet - Govemmental Funds to the Statement of Net Assets 10

Statement of Revenues, Expenditures and Changes in Fund Balances 11

Reconciliation ofthe Statement of Revenues, Expenditures and Changes in Fund Balances of Govemmental Funds to the Statement of Activiti es 12

FIDUCL\RY FUNDS:

Statement ofFiduciary Net Assets - Agency Funds 13

NOTES TO THE FINANCL\L STATEMENTS 15

REQUIRED SUPPLEMENTAL INFORMATION

Budgetary Comparison Schedule General Fund 25 Probation Fund 26

INDEPENDENT AUDITOR'S REPORT SECTION:

Report on Intemal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Govemment Auditing Standards 28

Schedule of Findings & Responses 3 0

Status of Prior Audit Findings 32

Stutzman & Gates, LLC Certified Public Accountants UmmbvM:

Amarfon butfruta o/Cvtffittf PubSc AccounUnti Sootty of LoulttuiB CwOthd PuWC Accountinta

INDEPENDENT AUDITOR'S REPORT

Honorable Todd Nesom District Attomey ofthe Thirty-Third Judicial District A Component Unit ofthe

Allen Parish PoUce Jury P. 0. Box 839 Oberlin, Louisiana

We have audited the accompanying financial statements ofthe govemmental activities, each major fund, and the aggregate remaining fund information of the District Attomey of the Thirty-Third Judicial District, a component unit of the Allen Parish Police Jury, as of and for the year ended December 31, 2009, which collectively comprise the District Attomey's basic financial statements as hsted in the table of contents. These financial statements are the responsibility of the District Attomey of the Thirty-Third Judicial District's management. Our responsibility is to express opmions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted m the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the ComptroUer General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are fi'ee of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financia] position of the govemmental activities, each major fimd, and the aggregate remaining fimd information ofthe District Attorney ofthe Thirty-Third Judicial District, as of December 31,2009, and the respective changes in financial position thereof for the year then ended in confonnity with accounting principles generally accepted in the United States of Amaica.

In accordance with Govemment Auditing Standards, we have also issued our report dated June 22,2010, on our consideration ofthe District Attomey of the Thirty-Third Judicial District's intemal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope ofour testing of mtemal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the intemal control over financial reporting or on compUance. That report is an integral part of an audit perfonned in accordance with Government Auditing Standards and should be considered in assessing the results ofour audit

p. O. Box 123$ Sulphur, Loulsltna 70664-123$ • (337) 533-1700 521N. 8* Street • Kinder, Louisiana 70646 • (337) 739-2101

Honorable Todd Nesom Page 2

The budgetary comparison information on pages 25 and 26 is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementaiy infonnation. However, we did not audit the information and express no opinion on it.

The District Attomey ofthe Thirty-Third Judicial District has not presented management's discussion and analysis that the Govemmental Accounting Standards Board has determined is necessary to supplement, although not required to be a part of, the basic financial statements.

Stut2man & Gates. LLC June 22,2010

BASIC FINANCIAL STATEMENTS

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DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICIAL DISTRICT Oberlin, Louisiana STATEMENT OF NET ASSETS - GOVERNMENTAL ACTIVITIES December 31, 2009

ASSETS

Cunent assets: Cash Prepaid expenses Receivables:

Other govemments Interest

TOTAL CURRENT ASSETS

192,380 1,651

40,300 128

234,459

Noncurrent assets: Capital assets, net accumulated depreciation

LIABILrnES

TOTAL ASSETS 105,365 339,824

Cunent UabiUties: Accounts payable and accrued habilities

TOTAL LL\BILITIES 37,604 37,604

NET ASSETS: Invested in capital assets Unrestricted

TOTAL NET ASSETS $

105,365 196,855 302,220

The accompanying notes are an integral part of this statement.

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DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICLVL DISTRICT Oberlin, Louisiana STATEMENT OF ACnvmES - GOVERNMENTAL ACTIVmES For the Year Ended December 31, 2009

FUNCnONS/PROGRAMS Judicial Activities

Total governmental activities

Program Revenue Expenses Charges for Services Opera

$ 824,780 $ 500,708 $

$ 824,780 $ 500,708 $

GENERAL REVENUES Interest eamed Gaming revenues Intergovemmental Forfeitures Proceeds from sale of vehicles Miscellaneous

Total General Revenues

iting Grants

207,155

207,155

Net (Expense) Revenue and Changes in Net Assets

$ (116,917)

$ (116,917)

788 113,243 90,972 3,334 4,814 5,501

218,652

CHANGES IN NET ASSETS 101,735

NET ASSETS - BEGINNING NET ASSETS-ENDING

200,485 302.220


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FUND FINANCIAL STATEMENTS

DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICIAL DISTRICT Oberlin, Louisiana Balance.Sheet, Govemmental Funds December 3 L 2009

NONMAJOR TOTAL GENERAL WORTHLESS PROBATION GOVERNMENTAL GOVERNMENTAL

FUND CHECK FUND FUND FUNDS FUNDS

ASSETS

Cash

Prepaid expenses Receivables

165,771 1,651

40,428

2,563 4,367 $ 19,679 $

TOTAL ASSETS

LIABILITIES AND FUND BALANCES

Liabilities: Accounts payable and

accmed liabilities

Total LiabiUties

S

$

207,850

37,604

37,604

Fund balances: Unrescrvcd-undesignated 170,246

Total Fund Balances 170,246

TOTAL LIABILITIES AND FUND BALANCES $ 207,850

J • ' —mm

2,563

$ -

2,563

2,563

$ 2,563

4,367 $

4.367

4,367

4,367

19,679

$ -

19,679

19,679

$ 19,679

192,380 1,651

40,428

234,459

$ 37,604

37,604

196,855

196,855

$ 234,459

The accompanymg notes are an integral part of this statement.

DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICL\L DISTRICT RECONCIUATION OF THE BALANCE SHEET - GOVERNMENTAL

FUNDS TO THE STATEMENT OF NET ASSETS December 31,2009

TOTAL FUND BALANCE FOR GOVERNMENTAL FUNDS AT DECEMBER 31.2009 $ 196,855

Total net assets reported for govemmental activities in the statement of net assets is different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds.

Capital assets, net of accumulated depreciation 105.365

TOTAL NET ASSETS OF GOVERNMENTAL ACTIVFTIES AT DECEMBER 31, 2009 $ 3Q2.22Q


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DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICL\L DISTRICT Oberlin, Louisiana GOVERNMENTAL FUNDS Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended December 31, 2009

REVENUES CommusJoiu on fines and forfeitures and

fees for collectioti of worthless checks S Intergovemmental revenues:

Parish police juiy grants Parish school board Federal grants State revenues

Interest earnings Other revenues:

Gaming revenues Wortiiless checks Forfeitures MiscelluKous

TOTAL REVENUES EXPENDrrURES Auto expenses Bank charges Contract Labor Drug education Dues and subscriptjons Insurance

Intergovemmental tiansfers Uce Medical Miscellaneous Office

Postage Public relations Rent Repairs Restitution Salaries and bciKfits Senmiars Telephone Travel Utihties Worthless check disbursements

TOTAL EXPENDITURES

EXCESS (DERCIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES (USES) operating transfers in Opeiatiag transfers out Proceeds from stle of vehicles

Total other fmancing sources (uses)

NET CHANGE IN FUND BALANCE _

FUND BALANCES AT BEGINNING OF YEAR _

FUND BALANCES AT END OF YEAR J _

GENERAL FUND

182.793

90,972 50,000

127.155 30.000

681

113.243 -

3.334 5^11

603,489

11,512 127

1,683 1,023 2,163 4,875

-39,000

266 500

12^50

4.572 333 180

1,870 .

569,968 13.111 2.778 3,364

55

-669.730

(66,241)

167,168

-4,814

171,982

105,741

64.505

170^46

WORTHLESS CHECK FUND

S 58,817

12

174,367

233.196

235

18.586

174,178 192,999

40,197

-(40.228)

-(40.228)

(31)

2,594

J 2,563

PROBATION 00^ FUND

$ 14U71 J

----

17

-• • -

141,388

-43

----

58.799

--------

1,833

------

60,675

80,713

-(77.592)

-(77.592)

3,!21

1.246

4,367 $

/ERNMENTAL G FUNDS

117.727 S

----

77

----

117,804

-183

----

39.471

--------

25383

------

65,037

52,767

-(49,348)

-(49.348)

3,419

16,260

19,679 S

OVERNMENTAL FUNDS

500,708

90.972 50.000

127,155 30.000

787

113,243 174,367

3,334 5.311

1.095.877

11.512 588

1,683 1,023 2,163 4,875

116.856

39,000 266 500

12,350

4,572

333 180

1,870 27.216

569.968 13.111 2.778 3364

55 174,178 988.441

107.436

167,168 (167.168)

4.814 4.814

112,250

84,605

196,855


11-

DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICIAL DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVmES

For the Year Ended Deceniber 31,2009

Amoimts reported for govemmental activities in the statement of activities are different because:

NET CHANGE IN FUND BALANCE - TOTAL GOVERNMENTAL FUNDS INCREASE $ U2,250

Govemmental funds report capital outlays as expenditures, however, in the statement of activities the capitalized cost of those assets is allocated over their estimated useful hves and reported as d^ireciation expense. This is the amount by which capital outlay exceeded depreciation expense:

Depreciation expense S (10^15) (10.515)

CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 101,735


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DISTRICT ATTORNEY OF THE TPHRTY-THIRD JUDICIAL DISTRICT Oberlin, Louisiana Statement ofFiduciary Net Assets - Agency Funds December 31,2009

AGENCY FUND

ASSETS

Cash and cash equivalents _$ 43,478^

TOTAL ASSETS $ 43,478

LL\BILITIES

Due to other agencies ^ 43,478

TOTAL LIABILrnES $ 43,478


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NOTES TO THE FINANCIAL STATEMENTS

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DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICIAL DISTRICT Oberlin, Louisiana

Notes to the Financial Statements As of and for the Year Ended December 31,2009

INTRODUCTION

As provided by Article V, Section 26 ofthe Louisiana Constitution of 1974, the District Attomey has charge of every criminal prosecution by the state in his district. He is also the representative ofthe state before the grand jury in his district, and is the legal advisor to the grand jury, and performs other duties as provided by law. The District Attomey is elected by the qualified electors of the judicial district for a term of six years. The judicial district encompasses the parish of Allen, Louisiana. The District Attomey has approximately twenty employees.

GASB Statement No. 14, Tiie Reporting Entity, established criteria for determining the govemmental reporting entity and component units that should be included within the reporting entity. Under provisions of this statement, the District Attomey ofthe Thirty-Third Judicial District of Allen Parish is considered a component unit ofthe Allen Parish Police Jury. As a component unit, the accompanying fmancial statements are included within the reporting of the primary government, either blended into those financial statements or separately reported as discrete component units.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Government-Wide and Fund Financial Statements

The govemment-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the District Attomey of the Thirty-Tiiird Judicial District of Allen Parish. For the most part, the effect of interfund activity has been removed from these statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific fimction or sG^aent. Program revenues include 1) charges to customers or applicants who purchase, use or directiy benefit fi*om goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for govemmental funds. Major individual govemmental funds are reported as separate columns in the fund financial statements. All remaining govemmental funds are aggregated and reported as nonmajor funds.

B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The govemment-wide financial statemmts are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when eamed and expenses are recorded

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DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICIAL DISTRICT Oberlin, Louisiana Notes to the Financial Statements ((Continued)



when a liability is incurred, regardless ofthe timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. (Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Govemmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities ofthe ciurent period. For this purpose, the govemment considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accmal accounting. However, debt service expenditures, as well as expenditures related to compensated absaices and clauns and judgments, are recorded only when payment is due.

Reimbursements and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues ofthe current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the govemment. Interfund transfers are made to meet current or anticipated needs.

The District Attomey's office reports the following govemmental fimds:

General Fund - The general operating fund ofthe District Attomey and accounts for all financial resources, except those required to be accounted for in other funds. To account for fines collected and bonds forfeited used to operate the District Attomey's office. Also to account for the State Department of Social Service's grant reimbursement used to fund family and child support enforcement services.

Special Revenue Funds:

Worthless Checks - To account for the collection and processing of worthless checks. Fees collected vary according to the check amount.

Intervention - To account for the pre-trial intervention and diversion programs.

Probation - To account for the probation program.

Additionally, the District Attorney's office reports the following fund types:

Fiduciary funds are used to account for assets held on behalf of outside parties, including other govemments, or on behalf of other funds within the District Attomey. Fiduciary funds include:

Agency Funds:

Forfeiture - To account for the collection and distribution of seized and forfeited assets.

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DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICIAL DISTRICT Oberlm, Louisiana Notes to the Financial Statements (Continued)



Private-sector standards of accounting and fmancial reporting issued prior to December I, 1989, generally are followed in the govemment-wide financial statements to the extent that those standards do not conflict with or contradict guidance ofthe Govemmental Accounting Standards Board.

As a general rule the effect of interfund activity has been eliminated fiom the govemment-wide financial statements^

When both restricted and unrestricted resources are available for use, it is the District Attomey's policy to use restricted resom-ces first, then unrestricted resources as they are needed.

C. Budgets

A budget is adopted on a basis consistent with generally accepted accounting principles. All annual appropriations lapse at fiscal year end. Encumbrance accounting is not used.

In Dec«nber of each year, the budget is prepared by fimd, fimction and activity, and includes infonnation on the past year, current year estimates and requested appropriations for the next fiscal year.

There was one amendment to the General Fund during the year and the amendment is reflected in the budget comparison. There was one amendment to the Probation Fund during the year and the am^dment is reflected in the budget comparison. A budget was not prepared for the Worthless Checks Fund for 2009.

D. Cash and Cash Equivalents

Cash includes amounts in demand deposits, interest-bearing demand deposits, and time deposits. Cash equivalents include amounts in time deposits and those investments with original maturities of 90 days or less. Under state law, the District Attomey may deposit funds in demand deposits, interest-bearing demand deposits, or time deposits with state banks organized under Louisiana law or any other state of the United States, or under the laws ofthe United States.

E. Investments

Investments are limited by R.S. 33:2955 and the District Attorney's mvestment policy. If the original maturities of investments exceed 90 days, they are classified as investments; however, if the original maturities are 90 days of less, they are classified as cash equivalents.

F. Prepaid Items

The District Attomey records as prepaid assets, expenditures during the current period that will benefit the subsequent period.

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DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICIAL DISTRICT Oberlin, Louisiana Notes to the Financial Statements (Continued)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLIOES

G. Capital Assets

Capital assets, which include property, plant, equipment, and infi-astmcture assets (e.g., drainage stractures, bridges, and similar items), are reported in the govemment-wide financial statements. Capital assets arc capitalized at historical cost. The District Attomey has established a $5,000 capitalization threshold.

The costs ofnormal maintenance and repairs that do not add to the value ofthe asset or materially extend assets hves are not capitalized.

All coital assets, other than land, are depreciated using the straight-line method over the following useful Uves:

Estimated Description Lives

Buildings and building improvements 20-40 years Fimiiture, fixtures and equipment 5-10 years Vehicles 5 years

H. Compensated Absences

The District Attomey's leave policy does not provide for the accumulation and vesting of leave.

I. Fund Balances

Reserves

Reserves represent those portions of fund equity not appropriable for expenditxu'e or legally segregated for a specific use.

J. Estimates

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

K. Interfund Transfers

Transfers are made into the General Fund from the Special Revenue Funds to assist in the payment of normal operating expenditures.

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DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICLVL DISTRICT Oberlin, Louisiana Notes to the Financial Statements (Continued)

NOTE 2 - CASH AND CASH EQUIVALENTS

Custodial credit risk - deposits. Custodial credit risk is tiie risk that in the event of a bank failure, the govemment's deposits may not be retumed to it.

In accordance witii a fiscal agency agreement that is approved by the District Attomey, the District Attomey's office mamtains demand and time deposits through local depository banks that are members of die Federal Reserve System.

Interest rate risk. The District Attorney's office does not have a formal mvestment poUcy that lunits mvestmait maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

Concentration of credit risk. The District Attomey's office places no limit on the amount the District Attomey's office may invest in any one issuer.

At December 31, 2009, the District Attomey has cash and cash equivalents (book balances) totaling $235,858 as follows:

Interest-bearing demand deposits $ 213,883 Time deposits 21,975

Total $ 235,858

These deposits are stated at cost, which approximates market. Under state law, these deposits (or the resulting bank balances) must be secured by federal deposit insurance or the pledge of securities owned by tiie fiscal agent bank. The market value ofthe pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agent. These securities are held in the name ofthe pledging fiscal agent bank in a holding or custodial bank that is mutually acceptable to both parties. At December 31,2009, tiie District Attomey has $291,458 in deposits (collected bank balances). These deposits are secured from risk by $291,458 of federal deposit insurance.

NOTE 3 - RECEIVABLES

The following is a summary of receivables at December 31,2009:

(jeneral Class of Receivable Fund Federal grant $ 10,049 Fines and reimbursements 30,251 Merest 128_

Total $ 40,428

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DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICLVL DISTRICT Oberlin, Louisiana Notes to the Financial Statements (Continued)

NOTE 4 - CHANGES IN CAPITAL ASSETS

The following is a summary of changes in coital assets for the year ending December 31,2009:

Capital assets: Cost at December 31, 2008 Additions Deletions Cost at December 31,2009

Depreciation: Accumulated depreciation -

December 31,2008 Additions Deletions Accumulated depreciation -

December 31, 2009 Capital assets, net of accunnilated

depreciation at December 31, 2009

Building Improvements

$ 120,696 $ --

120,696

(12,706) (3,992)

-

(16,698)

$ 103,998 $

Furniture, Fbttures& Equipment

55,792 $ -.

55,792

(52,841) (2,010)

-

(54,851)

941 $

Vehicles

50,169 $ -

(2U68) 28,801

(45.230) (4,513) 21,368

(28,375)

426 $

Total

226,657 .

(21,368) 205,289

(110,777) (10,515) 21,368

(99,924)

105,365

Depreciation expense was $10,515 for the year 2009.

NOTE 5 - INTERFUND RECIEVABLES, PAYABLES, AND TRANSFERS

The composition of interfund transfers for the year ending December 31,2009 is as follows:

Interfund Tranfers:

From To Amount Intervention Fund Probation Fimd Worthless Checks Fimd

Total

General Fund General Fund General Fund

$ 49,348

77,592

40,228

167,168

The District Attomey's office makes routine transfers between fimds to pay routine expenses that occur during the year.

NOTE 6 - PENSION PLANS

Plan Description. The District Attomey and assistant district attomeys are members ofthe Louisiana District Attomeys Retirement System (System), a cost-sharing, multiple-employer defined benefit pension plan administered by a separate board of tmstees.

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DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICLAL DISTRICT Obcrhn, Louisiana Notes to the Financial Statements (Continued)


Assistant district attomeys who earn, as a minimum, the amount paid by the state for assistant district attomeys and are under tiie age of 60 at the time of original employment and all district attomeys are reqmred to participate in the System. Formembers whojoined the System before July 1,1990, and who elected not to be covered by the new provisions, the following applies: Any member with 23 or more years of creditable service regardless of age may retire with a 3% benefit reduction for each year below age 55, provided that no reduction is applied if the member has 30 or more years of service. Any member with at least 18 years of service may retire at age 55 with a 3% benefit reduction for each year below age 60. In addition, any member with at least 10 years of service may retire at age 60 with a 3% benefit reduction for each year retiring below the age of 62. The retirement benefit is equal to 3% ofthe member's average final compensation multipUed by the number of years of his membership service, not to exceed 100% of his average final compensation.

For members who joined the System after July 1, 1990, or who elected to be covered by the new provisions the following applies: Members are eligible to receive normal retirement benefits if they are age 60 and have 10 years of service credh, are age 55 and have 24 years of service credit, or have 30 years of service credit regardless of age. The nonnal retirement benefit is equal to 3.5% ofthe member's final-average compensation multiplied by years of membership service. A member is eligible for early retirement if he is age 55 and has 18 years of service credit. The early retirement benefit is equal to the normal retirement benefit reduced 3% for each year the member retires in advance ofnormal retirement age. Bttiefits may not exce«l 100% of average final compensation. The System also provides deatii and disabiUty benefits. Benefits are estabUshed or amended by state statute.

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

Funding Policy. Plan members are required by state statute to contribute 7.0% of their annual covered salaiy. Contributions to the System also include .2% ofthe ad valorem taxes collected throughout the state and revenue sharing funds as appropriated by the legislature. The contribution requirraiOTts of plan members may be amended by state statute. The District Attomey, effective July 1,2004, began making a matching contribution which were discontinued during 2007 and reinstated during 2009. As provided by R.S. 11:103, the employer contributions are detemained by actuarial valuation and are subject to change each year based on the results ofthe valuation for the prior fiscal year. Contributions for 2009, 2008, and 2007 totaled $3,487, $0, and $2,387, respectively

Plan Description. SubstantiaUy all other employees of the District Attomey are members of the Parochial Employees' Retirement System of Louisiana (System), a cost-sharing, multiple-employer defined benefit pension plan administered by a separate board of trustees. The System is composed of two distinct plans, Plan A and Plan B, with separate assets and benefit provisions. All employees ofthe District Attorney are members of Plan A.

21

DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICIAL DISTRICT Oberlin, Louisiana Notes to tiie Financial Statements (Contmued)


AU permanent employees workmg at least 28 hours per week who are paid wholly or in part fiom parish fimds and all elected parish officials are eUgible to participate in tiie System. Under Plan A, employees who retu^ at or after age 60 with at least 10 years of creditable service, at or after age 55 witii at least 25 years of creditable service, or at any age with at least 30 years of creditable service are entitled to a retirement benefit, payable monthly for Ufe, equal to 3% of tiieir final-average salary for each year of creditable service. However, for those employees who were members ofthe supplemental plan only before January 1, 1980, the benefit is equal to 1% of final average salary plus $24 for each year of supplemental-plan-only service eamed before January 1,1980 plus 3% of final-average salary for each year of service credited after the revision date. Final-average salary is the employee's average salary over tiie 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 withdraw their employee contributions, may retire at the ages specified above and receive tiie benefit accmed to their date of termination. The System also provides death and disability benefits. Benefits are estabUshed or amended by state statute.

The System issues an aimual pubUcly available financial report that includes financial statements and requii^ supplementary information for the System. That report may be obtained by writing to the Parochial Employees' Retirement System, Post Office Box 14619, Baton Rouge, Louisiana 70898-4619, or by caUing (225) 928-1361.

Funding Policy. Under Plan A, members are required by state statute to contribute 9.5% of their annual covered salary and the District Attomey is required to contribute at an actuarially determined rate. The 2009 rate is 12.75% of annual covered payroll. Contributions to the System also include one-fourth of 1% (except Orleans and East Baton Rouge parishes) ofthe taxes shown to be coUectible by the tax rolls of each parish. These tax dollars are divided between Plan A and Plan B based proportionately on the salaries ofthe active members of each plan. The contribution requirements of plan members and the District Attomey are established and may be amended by state statute. As provided by R.S. 11:103, the employer contributions are deteraiined by actuarial valuation and are subject to change each year based on the results of the valuation for the prior fiscal year. The District Attomey's contributions to the Syston under Plan A for tiie years ending 2009,2008, and 2007 were $34,826, $43,861, and $47,556 respectively, equal to the required contributions for each year.

NOTE 7 - RISK MANAGEMENT

The District Attomey is exposed to various risks of loss related to torts; theft of, damage to and destmction of assets; errors and omissions; injuries to employees; and natural disasters. The District Attomey maintains commercial insurance coverage covering each of those risks of loss. Management believes such coverage is sufficient to preclude any significant uninsured losses. Settied clauns have not exceeded this commercial coverage in any ofthe past three fiscal years. The District Attomey did not reduce insurance coverage during 2009,

NOTE 8 - ON-BEHALF PAYMENTS FOR FRINGE BENEFITS AND SALARIES

The utiUties used by the District Attomey in the office building that it occupies are paid for by the Men Parish PoUce Jury. The Allen Parish PoUce Jury also pays for certain msurance coverages.

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DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICIAL DISTRICT OberUn, Louisiana

Notes to the Financial Statements (Continued)

NOTE 9 - CHANGES IN AGENCY FUND DEPOSITS DUE OTHERS

A summary of changes m agency fund dqwsits due others follows:

Balance at Balance at End Beginnmg ofYear Additions Reductions ofYear

Agency funds: Forfeiture Fund $ 51,598 $ 8,976 $ 17,096 $ 43,478

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REQUIRED SUPPLEMENTAL INFORMATION

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DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICIAL DISTRICT Obcrhn, Louisiana GENERAL FUND Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended December 31.2009

REVENUES Cominissiotu on fines and other costs

IntergovenimenUl revenues: Parish police juiy grsmts

Parish school board

Federal grama

State revenues

Intenat eamings

Other revenues: Gaming revenues Forfeitures Miscellaneous

ExpENommEs Auto expenses Bank charges Capital Outlay Contract labor Drug education Dues and subscriptions Insurance Lace Medical Miscellaneous Office Postage

Public relations

Rent

Repairs

Salaries tnti benefits

Seminars

TclepbODo

Travel

Unifomtt

Utilities

TOTAL EXPENDITURES

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDrrURES

OTHER FINANCING SOURCES (USES)

Operating transfers in

Proceeds fiom sale of vehicles

Total other financing sources (uses)

NET CHANGE IN FUND BALANCE

FUND BALANCE AT BEGINNING OF YEAR

FUND BALANCE AT END OF YEAR $

745.850

(203.33QJ

165.000

(38.350)

64,505

670,655

j81.055)

174>000

174,000

92.945

64,505

26,155 157,450

s

TOTAL REVENUES _

BUDGETED ORIGINAL

155,500 S

91.000 40,000

120,000 30,000

1.000

100,000 5,000

. 542.500

10,000 500

1,000 500 500

2,750 7.500

-750 600

10,000

3,200

750 -

200 690,000

10,000

5,000

2,500 100

-

FINAL

164,800 $

91,000

50.000 135,000 32,500

1,000

112,000 3.300

-589,600

10,000 500

uoo 100

uoo 2,200 5,500

35,750 300

3,225 U.OOO

4,500

750

-430

571.400

13,500

2.500

3.500 100

-

ACTUAL

182,793

90,972

50,000 127.155 30.000

681

113,243 3.334

5.311

603,489

11.512 127

-1,683

1,023

2,163 4,875

39,000 266 500

12.350

4,572

333 ISO

1.870

569,968

13,111

2.778

3364

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VARIANCE FAVORABLE

(UNFAVORABLE)

S 17,993

(28)

-(7,845) (2.500)

(319)

1,243 34

5,311

13,889

(1.512) 373

1,200 (1.583)

177 37

625 (3.250)

34 2.725 1,650

C72)

417 (180)

(1.440)

1.432

389 (278)

136 100 (55)

669.730

(66,241)

167,168

4.814

171.982

105,741

64,505

170,246 $

925

14,814

(6.832)

a.oi8)

12,796

12.796

Notes to the Sdiedule:

Tbe budget is adopted on a basii consistent with generally accepted accounting principles. There was one amendment to the budget in 2009.

AU of the expenditures, except ^ foHowing, were amended more than 10%: auto expenses, bank charges, public relations, rent, unifonns, & utilities.

The followiDg revenues were amended by more than 10%; School board grant, federal grants, gaming, & forfeitures.

The accompanying notes are an integral part of this statement

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DISTRICT ATTORNEY OF THE THIRTY-THIRD JUDICIAL DISTRICT Oberlin, Louisiana PROBATION FUND Statement of Revenues, Expenditures, and (Changes in Fund Balances - Budget and Actual For Ac Year Ended December 31,2009

REVENUES Commissions on fines and other costs $ Interest earnings

TOTAL REVENUES EXPENDITURES Bank charges Intergovernmental transfers Restitution

TOTAL EXPENDITURES

EXCESS (DEFICIENCY) OF REVENUES OVEREXPENDITURFS

OTHER FINANCING SOURCES (USES) Operating transfers out

Total other financing sources (uses)

NET CHANGE IN FUND BALANCE

FUND BALANCE AT BEGINNING OF YEAR

FUND BALANCE AT END OF YEAR $

BUDGETED ORIGINAL

75,000

75,000

-

75,000

(75,000) (75,000)

U 4 6

1^46

$

$

FINAL

84,000 100

84,100

-

84.100

(84.100) (84.100)

1,246

1,246

ACTUAL

$ 141,371 17

141,388

43 58,799

1,833 60,675

80,713

(77,592) (77,592)

3,121

1,246

$ 4,367

VARIANCE FAVORABLE

(UNFAVORABLE)

S 57,371 (83)

57.288

(43) (58,799)

(1.833) (60.675)

(3.387)

6,508 6.508

3,121

S 3,121

Notes to the Schedule: The budget is adopted on a basis consistent with generally accepted accounting principles. There was one amendment to the budget in 2009. The eKpenditure and other fmandng uses were underbudgetcd by S54,167.

The accompanying notes are an integral part of this statemenL

26

INDEPENDENT AUDITOR'S REPORT SECTION

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stutzman & Gates, LLC Certified Public Accountants Uwmbcn:

AmvicmntnMttttitmofCwiaitdPitblhActountMna Society ot lJ>ui$lan» Ctftaitit PubBe AceoimttntM

REPORT ON INTERNAL CONTROL OVER FINANCL\L REPORTING AND ON COMPLL^CE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Honorable Todd Nesom District Attomey ofthe Thirty-Third Judicial District A Component Unit ofthe

Allen Parish Police Jury P. 0. Box 839 Oberlin, Louisiana

We have audited the financial statements ofthe District Attomey ofthe Thirty-Third Judicial District as of and for the year ended December 31,2(K)9, and have issued our report thereon dated June 22,2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards ^plicable to financial audits contained m Government Auditing Standards, issued by the (Comptroller General ofthe United States.

Intemal Control Over Financial Reporting

In planning and performing our audit, we considered the District Attomey ofthe Thirty-Third Judicial District's intemal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness ofthe District Attomey ofthe Thirty-Third Judicial District's intemal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness ofthe District Attomey ofthe Thirty-Third Judicial District's intemal control over financial reporting.

Our consideration of intemal control over financial rq^orting was for the limited purpose described in the preceding paragraph and was not designated to identify all deficiencies in intemal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying schedule of findings and responses, we identified certain deficiencies in intemal control over financial reporting that we consider to be material weaknesses.

A deficiency in intemal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weaioiess is a deficiency, or a combination of deficiencies, in intemal control such that there is a reasonable possibility that a material misstatement ofthe entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying schedule of findings and responses to be material weaknesses. Sec items 2(X)9-1,2(X)9-2, and 2009-3.

p. a Box 1238 Sulphur, Louisiana 70664-1238 • (337) 533-1700 S21N. fi* Street • Kinder, IjMisiana 70648 • (337) 736-2101

District Attomey ofthe Thirty-Third Judicial District Page 2

CompUance and Other Matters

As part of obtaining reasonable assurance about whetho- the District Attomey ofthe Thirty-Third Judicial District's financial statements are fipee of material misstatement, we performed tests of its compliance with certain provisions of laws, regulatioiis, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed instances of noncompliance or other matters that are required to be reported under Govemment Auditing Standards and which are described m the accompanying schedule of findings and responses as item 2009-3.

The District Attomey ofthe Thirty-Third Judicial District's response to the findings identified in oiu" audit are described in the accompanying schedule of findings and responses. We did not audit the District Attomey of the Thirty-Third Judicial District's response and, accordingly, we express no opinion on it.

This report is intended solely for the infonnation and use of management, the District Attomey ofthe Thirty-Third Judicial District, the Allen Parish Police Jury, and the Legislative Auditor and is not intended to be and should not be used by anyone other than these specified parties. Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.

4^c^ / Stutzman & Gates, LLC June 22,2010

District Attomey of the Thirty-Third Judicial Distnct Scbednle of Findings & Responses

For tbe Year Ended December 31,2009

2009-1 Segregation of Duties

Condition: Because ofthe entity's size and the hmited number of accounting pCTSonnel, it is not feasible to maintain a complete segregation of duties to achieve effective intemal control.

Criteria:

Effect:

RecoDMnendation:

Response:

Effective intemal control requires adequate segregation of duties among client pCTsonnel.

Without proper segregation of duties, errors within the financial records or fi^ud could go imdetected.

To the extent cost effective, duties should be segregated and management should attempt to mitigate this weakness by supervision and review procedures.

We concur with this recommendation. Management has implemented supervision and review procedures to the extent possible.

2009-2 Controls over Financial Reporting

Condition:

Criteria:

Effect:

Recommendation:

In our judgment, the personnel ofthe Office ofthe District Attomey ofthe Thirty-Third Judicial District do not have the specialized accounting training necessary to generate the financial statements, together with related notes in accordance with generally accepted accounting principles (GAAP).

The Auditing Standards Board recently issued guidance to auditors related to entity's intemal controls over financial reporting. Many small organizations rely on their auditor to generate the armual financial statements including footnotes. SAS No. 112 emphasizes that the auditor carmot be part of your system of intemal control over financial reporting.

Material misstatements in financial statements could go undetected.

In our judgment, due to the lack of resources available to management to correct this material weakness in financial reporting, we recommend management mitigate this weakness by having a heightened awareness of all transactions being reported.

Response: We concur with this recommendation. Management has implemented supervision and review procedures to the extent possible.

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District Attomey ofthe Thirty-Third Judicial District Schedule of Findings & Responses

For the Year Ended December 31,2009

2009-3 Local govemment budget act - Budgetary authority and control

Condition:

Criteria:

The Probation Fund budget did not reflect transfers to other govemment agencies and other uses. Actual expenditures and other uses exceeded budgeted expenditures and other uses by 65% in the Probation Fund for the year ended December 31,2009.

La.Rev.StaL §39:1311 (A)(2). Whenever total actual expenditures and other uses plus projected expenditures and other uses for the remainder ofthe year, within a fimd, are exceeding budgeted expenditures and other uses by five percent or more, the budget shall be amended.

Effect:

Recommendation:

Response:

Violation of local govemment budget act

The District Attomey ^ould amend the budget whenever actual expenditures and other uses plus projected expenditures and other uses exceed budgeted expenditures and other uses by five percent or more.

We concur with this recommendation. The District Attomey will amend its budget whenever necessary in the future.

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http://La.Rev.StaL

District Attomey ofthe Thirty-Third Judicial Distnct Status of Prior Audit Findings

For the Year Ended December 31,2009

2008-1 Segregation of Duties

Corrective action taken - Due to lack of sufficient financial resources, this finding cannot be resolved.

2008-2 ContTjOls over Financial Reporting

Corrective action taken - Due to lack of sufScient financial resources, this finding cannot be resolved.

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