Franklin Parish Police Jury...Franklin Parish Police Jury Winnsboro, Louisiana Table of Contents...

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FRANKLIN PARISH POLICE JURY Winnsboro, Louisiana

Primary Government Financial Statement With Independent Auditor's Report

As of and for the Year Ended December 31, 2009

With Supplemental Information Schedules

Under provisions of state law, this report is a public document. Acopy ofthe report has been submitted to the entity and other appropnate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parjsh clerk of court.

Release Date

Franklin Parish PoHce Jury Winnsboro, Louisiana

Primary Government Financial Statements With Independent Auditor's Report

As of and for the Year Ended December 31,2009

With Supplementallnforination Schedules

C O N T E N T S

Required Supplemental Infomiation (Part 1) Management's Discussion and Analysis

Statement of Activities

Fund Financial Statements - Governmental Funds:

Balance Sheet

Reconciliation ofthe Governmental Funds Balance Sheet to The Financial Statement of Net Assets

Statement of Revenues, Expenditures, and Changes in Fund Balances

Reconciliation ofthe Govemmental Funds Statement of Revenues, Expenditures, And Changes in Fund Balances to the Statement of Activities

Notes to the Financial Statements

Required Supplemental Information (Part II)

Budget Comparison Schedules - Major Funds

Statement

Independent Auditor's Report

Basic Financial Statements

Govemment-Wide Financial Statements:

Statement of Net Assets A

B

D

Schedule

Page

4

8

11

12

13

14

15

16

18

^ e

36

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Franklin Parish Police Jury Winnsboro, Louisiana Table of Contents (Contd.)

Other Supplemental Schedules

Non-Major Govemmental Funds: Schedule Page

Employee Health Care Plan - Schedule of Funding Progress 2 39

Special Revenue Funds:

Combining Balance Sheet 3 43

Combining Schedule of Revenues, Expenditures and Changes In Fund Balances 4 44

Special Revenue Funds -Maintenance Funds:



Special Revenue Funds -Fire District Funds:



Schedule of Compensation Paid Elected Officials 9 50

Schedule of Expenditures of Federal Av ards 10 51 Other Reports

Report on Compliance and Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance Goveniment Auditing Standards 54

Report on Comphance With Requirements Applicable to Each Major Program and Internal Control Over Comphance in Accordance With 0MB Circular A-133 56

Schedule of Audit Findings 11 58

Schedule of Prior Audit Findings 12 60

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Required Supplemental Information (Part I) Management's Discussion and Analysis

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Franklin Parish Police Jury Winnsboro, Louisiana

Management's Discussion and Analysis December 31,2009

(Unaudited)

As management ofthe Franklin Parish Police Jury, we offer readers ofthe police jury's financial statements this narrative overview and analysis ofthe financial activities ofthe police jury for the year ended December 31,2009. We encourage readers to consider the infomnation presented here, in conjunction with the basic financial statements, and the supplementary information provided in this report in assessing the efficiency and effectiveness of our stewardship of public resources.

Overview ofthe Financial Statements

This discussion and analysis are intended to serve as an introduction to the Franklin Parish Police Jury's basic financial statements. The poHce jury's basic financial statements comprise three components: (1) govemment-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Govemment-wide Financial Statements. The govemment-wide financial statements are designed to provide readers with a broad overview of the Franklin Parish Police Jury's finances, in a manner similar to a private-sector business.

The statement of net assets presents information on all of the Franklin Parish PoHce Jury's assets and habilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a usefiil indicator of whether the financial position ofthe police jury is improving or deteriorating.

The statement of activities presents information showing how the police jury's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the imderlying event giving rise to the change occurs, regardless of timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (for example, earned but not taken annual leave).

Fund Fmancial Statements. A fiind is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Franklin Parish Police Jury, like other state and local governments, uses fimd accounting to ensure and demonstrate compliance with finance-related legal requirements. All ofthe current fiinds ofthe police jury are included in one category - govemmental funds.

Governmental Funds. Govemmental fiinds are used to account for essentially the same functions reported as govemmental activities in the govemment-wide financial statements. However, unlike the govemment-wide financial statements, govemmental fimd financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of

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the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.

Because the focus of govemmental funds is narrower than that ofthe govemment-wide financial statements, it is useful to compare the information presented for govemmental funds with similar information presented for govemmental activities in the govemment-wide financial statements. By doing so, readers may better understand the long-term impact ofthe government's near-term financing decisions. Both the govemmental funds balance sheet and the governmental fimds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between govemmental fiinds and govemmental activities.

The Franklin Parish Police Jury maintains 17 individual govemmental funds. Information is presented separately in the govemmental ftinds balance sheet and in the govemmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, the Road and Bridge, Drainage Maintenance, Parish Equipment, and Sales Tax special revenue funds, which are considered to be a major funds, Data from the other fimds are combined into a single, aggregated presentation. Individual fund data for each of these non-major govemmental funds is provided in the form of combining schedules in the other supplemental information section ofthe report.

Franklin Parish Police Jury adopts an armual appropriated budget for the General Fund and all special revenue funds. Budgetary comparison schedules are provided in the Required Supplemental Information (Part II) for the major funds to demonstrate compliance with this budget.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding ofthe data provided in the govemment-wide and fund financial statements.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain other supplemental information concerning the Franklin Parish Police Jury. The combining statements referred to earlier in connection with non-major govemmental funds are presented immediately following the required supplemental information section.

Govemment-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 ofthe fiscal year, assets ofthe Franklin Parish Police Jury exceeded liabilities by $24,343,508. Of those net assets, $19,121,009 represents the police jury's investment in capital assets net of accumulated depreciation. These assets are not available for future spending. The remaining net assets are made up of bank balances, receivables, and prepaid assets.

Statement of Net Assets Assets

Casli and cash equivalents Receivables Piepuid assets Capital assets (net)

Total Assets Liabilities Bank overdraft Accounts payable

2009

$4,375,203 2;>79,2I7

3.009 19.121,009

$25,778,438

$8,698 283,932

2008

53.765,869 2,558,931

18.517,762 $24,842^62

$253,378

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Payroll withholding payable Compensated absences payable Capital leases payable Due to others Net OPEB obligation Deferred revenues - Protest taxes

Total Liabilities Net Assets Invested in capital assets, net of related debt Unrestricted

Total Net Assets

$35,319 102,809 280.023 20,000

375,484 328.665

$1,434,930

$18,840,986 5.502.522

$24,343,508

$78,927 98,122

10,000

302.411 $742,838

$18,517,762 5J8K962

$24,099,724

Financial Analysis ofthe Government's Funds Franklin Parish Police Jury uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus ofthe govemmental fiinds is to provide information on near-term revenue, expenditures, and balances of expendable resources. This information is used in assessing the financing requirements ofthe police jury. Unreserved fund balances may serve as a useful measure of a govenunent's net resources available for spending at the end ofthe fiscal year.

As of December 31, 2009, combined govemmental fund balances of $5,980,815 showed an increase of S300,731 over December 31,2008. The General Fund's balance of $272,696 showed a decrease of $90,068 fi-om the 2008 balance of $362,764.

Budgetary EQghlights

GENERAL FUND - The differences in revenues were due to increases in licenses and permits, federal funds and operating transfers in and a decrease in other state funds. Expenditures required an increase in finance and administrative, public safety, and operating transfers out.

WORKFORCE INVESTMENT ACT - There were no amendments to the budget

ROAD AND BRIDGE - The differences in revenues were due to increases in federal funds and other state fimds. Expenditures required an increase in public works and capital outlay.

SALES TAX - The differences in expenditures required an increase in public works.

DRAINAGE MAINTENANCE - The differences in expenditures required an increase in public works.

PARJSH EQUIPMENT - The differences in expenditures required an increase in public works and capital outlay.

Capital Asset and Debt Administration

Capital Assets. The Franklin Parish Police Jury's investment in capital assets for its governmental activities as of December 31,2009, amounts to $ 19,121,009 (net accumulated depreciation). This investment includes land, buildings and improvements, infi-astructure roads and bridges, and furniture and equipment. The increase in capital assets for the year was $1,964,561. Reductions in capital assets for the year ended December 31, 2009 were $280,457.

Long-Term Debt. The FrankUn Parish Police Jury had long-term debt at 12/31/09 relating to compensated absences. That total is $102,809. At the end of the fiscal year, the Franldin Parish Police Jury also had debt outstanding, in the form of leases, of $280,023, which will be paid in full within three years. During the year ended December 31,2009, $29,227 of debt was paid in accordance with the debt agreement.

Requests for Information

This financial report is designed to be a summary ofthe Franklin Parish Pohce Jury's finances. If there are any questions regarding any information, a request can be made in writing to the Franklin Parish Police Jury, at 6558 Main Street, Winnsboro, Louisiana 71295. Our telephone number is (318) 435-9429.

Member American M A R Y J O FENfLEY, C P A , I N C . Member Society of Institute of Certified Louisiana Certified Public Accountants ^ PROFESSIOMAL CORPORATION PybUc Accountants

116 Professional Drive - West Monroe, LA 7 1 2 9 1

P h o n e (318) 329-8880 - FELM (318) 3 2 9 - 8 8 8 3

Independent Auditor's Report


I have audited the accompanying financial statements ofthe govemmental activities, each major ilind, and the aggregate remaining fund information of Franklin Parish Pohce Jury as of and for the year ended December 31, 2009, which collectively comprise the basic financial statements ofthe parish's primary govemment as listed in the table of contents. These financial statements are the responsibility of Franklin Parish Police Jury's management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that I 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 significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opmion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position ofthe govemmental activities, major fimds, and the aggregate remaining fimd information for the primary govemment of Franklin Parish Police Jury as of December 31,2009, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Goveinment Auditing Stajidards, I have also issued my report dated February 18,2010, on my consideration ofthe Franklin Parish Police Jury's internal control over financial reporting and on my tests OS its compliance with certain provisions oflaws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of my testing of internal control over financial reportmg and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Governmental Auditing Standards and important for assessing the results of my audit.

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Practice Limited to Gouemmentnl Accounting. Audiiuig and Financial Reporting


Independent Auditor's Report, December 31,2009

Management's discussion and analysis on pages 4 through 7 is not a required part ofthe basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. Ihave applied certain limitedprocedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation ofthe required supplementary information. However, I did not audit the information and express no opinion on it.

My audit was performed for the purpose of forming an opinion on the financial statements that collectively comprise Franklin Parish Police Jury's basic financial statements. The other supplementary information schedules on pages 41 through 51 are presented for the purpose of additional analysis and are not a required part ofthe basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Nan-Profit Organizations, and is also not a required part of the basic financial statements of Franklin Parish Police Jury. Those schedules, and the budgetary comparison schedules on pages 35 through 39 which is supplementary information required by the Govemmental Accounting Standards board, have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, are presented fairly in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, I express no opinion on them.

In accordance with Government Auditing Standards, I have also issued a report dated February 18, 2010, on my consideration ofthe Franklin Parish Police Jury's internal control over financial reporting and my tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Govemment Auditing Standards and should be read in conjunction with this report in considering the results of my audit.

West Monroe, Louisiana February 18,2010

Basic Financial Statements

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statement A Franklin Parish Police Jury

Winnsboro, Louisiana Govemmental Activities Statement of Net Assets

December 31,2009

Assets . , , Cash and cash equivalents $4,375,203 Receivables 2,279,217 Prepaid assets 3,009 Capital assets (net) 19,121,009

Total Assets $25,778,438

Liabilities Bank overdraft $8,698 Accounts payable 283,932 Payroll withholding payable 35,319 Compensated absences payable 102,809 Capital leases payable 280,023 Due to others (damage deposit) 20,000 Net OPEB obligation 375,484 Deferred revenues - protest taxes 328,665

Total Liabihties $1,434,930 Net Assets Invested in capital assets, net of related debt $18,840,986 Unrestricted 5,502,522

Total Net Assets $24,343,508

See accompanying notes to basic financial statements.

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Franklin Parish Police Jury Winnsboro, Louisiana Statement of Activities

For the Year Ended December 31,2009

Statement B

Functions: Govemmental Activities:

General govemment Pubhc safety Public works Health and welfare Culture and recreation Economic development

and assistance Total govemmental activities

Expenses

$919,225 796,731

6,503,225 347,106 123,891

2,717,983 $11,408,161

Charges for

Services

$241,270 31,485

32,525

$305,280

Program Revenues Operating Grants and

Contributions

$29,848 369,826 583,554 41,910

2,622,420 $3,647,558

Capital Grants and

Contributions

$1,533,445

$1,533,445

Net (Expense) Revenue and

Changes in Net Assets

($648,107) (395,420)

(4,386.226) (305.196) (91.366)

(95,563) (5,921,878)

General revenues: Taxes:

Ad valorem taxes Sales taxes State revenue sharing Fire insurance rebate Other taxes, penalties, and interest

Grants and contributions not restricted to specific programs

Licenses and permits Unrestricted investment earnings Gain (Loss) on sale of assets Other

Total general revenues

Change in net assets

Net assets at beginning of year Net assets at end of year

2,012,194 3,587,222

175,659 96,151 14,468

79,082 127,762 42,749

(20,580) 50,955

6,165.662

243,784

24,099,724 $24,343,508


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December 31,2009

Total fund balance - govemmental funds (Statement C) $5,980,815

Amounts reported for govemmental activities in the statement of net assets are different because:

Capital assets used in govemmental activities are not financial resources 19,121,009

Long term liabilities: Compensated absences payable ($102,809) Capital leases payable (280,023) Net OPEB obligation (375,484) (758,316)

Net assets of govemmental activities (Statement A) $24,343,508


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Reconciliation ofthe Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities

For the Year Ended December 31, 2009

Net change in fund balances - total govemmental funds (Statement D) $300,731

Govemmental fimds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated usefiil lives and reported as depreciation expense. This is the amount by v/hich capital outlays ($ 1,964,561) exceeded depreciation ($1,275,736) in the current period. 688,825

The issuance of long term debt (lease) and payments on the leases are treated in govemmental activities as other financing sources and uses, whereas those transactions are not reported in the govemment wide statement of activities but are carries to the statement of net assets. (280,023)

Payments of long-term debt, including contributions to OPEB obligation, are reported as expenditures in govemmental fiinds. However, those amounts are a reduction of long-term liabilities in the Statement of Net Assets and are not reflected in the Statement of Activities. (3 75,484) Govemmental funds do not report gain or loss on disposition of assets. In the Statement of Activities, gain on disposition of assets increased when the asset is disposed. (85,580)

In the Statement of Acfivities, certain operating expenses - compensated absences - are measured by the amounts earned during the year. In the govemmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially, the amounts actually paid). (4,685)

Change in net assets of govemmental activities (Statement B) $243,784


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Notes to the Financial Statements

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

Introduction

The Franklin Parish Police Jury is the goveming authority for Franklin Parish and is a political subdivision ofthe State of Louisiana. The police jury is governed by seven jurors representing the various districts within the parish. The jurors serve four-year temis which expire in January, 2012.

Louisiana Revised Statute 33:1236 gives the police jury various powers in regulating and directing the affairs ofthe parish and its inhabitants. The more notable of those are the powers to make regulations for their own government, to regulate the constmction and maintenance of roads and bridges, to regulate the construction and maintenance of drainage systems, to regulate the sale of alcoholicbeverages, and to provide for the health and welfare ofthe poor, disadvantaged, and imemployed in the parish. Funding to accomplish these tasks is provided by ad valorem taxes, sales taxes, beer and alcoholic beverage permits, state revenue sharing, and various other state and federal grants.

In accomplishing its objectives, the police jury also has the authority to create special districts (component units) within the parish. The districts perform specialized fimctions, such as fire protection, water distribution, sewerage collection and disposal, drainage control, library facilities, and health care facilities.

GASB Statement No. 14, Tlie 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 jury is considered a primary government, since it is a special purpose government that has a separately elected goveming body, is legally separate, and is fiscally independent of other state or local govemments. As used in GASB Statement No. 14, fiscally independent means that the police jury may, without the approval or consent of another govemmental entity, determine or modify its own budget, levy its own taxes or set rates or charges, and issue bonded debt. In accordance with GASB Statement 14, the reporting entity for Franklin Parish consist ofthe primary govemment (poUce jury), (b) organizations for which the primary govemment is financially accountable, and (c) other organizations for which the nature and significance of their relationship with the primary govemment are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.

GASB Statement No. 14 established criteria for determining which component units should be considered part of Franklin Parish Police Jury for financial reporting purposes. The basic criterion for including a potential component unit within the reporting entity is financial accountability. The GASB has set forth criteria to be considered in determining financial accountability. This criteria includes:

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

a. The ability ofthe police jury to impose its will on that organization and/or

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Notes to the Financial Statements (Continued)

b. The potential for the organization to provide specific financial benefits to or impose specific financial burdens on the police jury.

2. Organizations for which the police jury does not appoint a voting majority but are fiscally dependent on the police jury.

3- Organizations for which the reporting entity financial statements would be misleading if data ofthe organization is not included because of the nature or significance of the relationship.

Based on the previous criteria, the police jury has deteraiined that the following component imits are part ofthe reporting entity:

Franklin Parish: Library Tourist Commission Assessor Clerk of Court Sheriff Communications District Hospital Service District No. 1 Sewerage District No. 1 Sewerage District No. 2 Fire District No. 2 Fire District No. 3 Fire District No. 4

Fifth Judicial District Criminal Court Crowville Fire District

Fiscal Year End

December 31 December 31 December 31

June 30 June 30

December 31 December 31

June 30 December 31 December 31 December 31 December 31 December 31 December 31

Criteria Used

1&3 1&3 2&3 2&3 2 & 3 1&3 1&3 1&3 1&3 1&3 1&3 1&3

3 1&3

Considered in the detemiination of component units ofthe reporting entity were the Franklin Parish School Board and the various municipalities in the parish. It was determined that these govemmental entities are not component tmits ofthe Franklin Parish Police Jury reporting entity because they have separately elected goveming bodies, are legally separate, and are fiscally independent ofthe Franklin Parish Police Jury.

GASB Statement 14 provides for the issuance of primary govemment financial statements that are separate fi-om those of the reporting entity. However, the primary government's (police jury*s)

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Franklin Parish Pohce Jury Winnsboro, Louisiana


financial statements are not a substitute for the reporting entity's financial statements. The accompanying primary govemment financial statements have been prepared in conformity with generally accepted accounting principles as applied to govemmental units.

The police jury has chosen to issue financial statements ofthe primary government (police jury) only; therefore, none of the previously listed component units, except as discussed in the following paragraph, are included in the accompanying primary govemment financial statements. These financial statements are not intended to and do not report on the Franklin Parish reporting entity but rather are intended to reflect only the financial statements ofthe primary govemment (police jury).

These primary govemment (police jury) financial statements include all funds and organizations for which the police jury maintains the accoimting records. Organizations for which the police jury maintains the accounting records include the Fifth Judicial District Criminal Court, Fire District No. 2, Fire District No. 3, Fire District No. 4, and the Franklin Parish Tourist Commission.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Govemment-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 ofthe nonfiduciary activities ofthe primary govemment. For the most part, the effect of interfund activity has been removed from these statements. Govemmental activities, which normally are supported by taxes and intergovemmental revenues, are reported separately fi^om business-type activities, which rely to a significant extent on fees and charges for support.

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 function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directiy benefit from 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 aparticular 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 and, where applicable, proprietary and fiduciary funds, even though fiduciary funds are excluded from the govemment-wide financial statements. Major individual govemmental funds and, where applicable, major individual enterprise fimds are reported as separate columns in the fund financial statements.

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

The govemment-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are proprietary and fiduciary fund financial statements, where applicable. Revenues are recorded when earned and expenses are recorded 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.

Goverrmiental fund financial statements are reported using the current financial resources measurement focus and the modified accmal 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 current 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 accrual accoimting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Ad valorem taxes, state revenue sharing, and federal and state grants are all considered to be susceptible to accmal 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 police jury.

The police jury reports the following major govenmiental fimds:

The General Fund is the police jury*s primary operating fund. It accounts for all financial resources ofthe general government, except those required to be accounted for in another fund

The Workforce Investment Act (WIA) Fund accounts for grants from the United States Department of Labor passed through the Louisiana Department of Labor. Grants are subsequently transferred to the Franklin Parish Community Action Association, Incorporated, which administers the program under contract with the police jury. The WIA program provides job training and related assistance to economically disadvantaged individuals. The ultimate goal of the program is to move trainees into permanent, self-sustaining employment.

The Road and Bridge Fund accounts for the constmction, repair, and maintenance of roads and bridges on a parish wide basis. Financing is provided by ad valorem

-21



taxes, state revenue sharing, Parish Transportation Act funds, and operating transfers from the General Fund.

The Sales Tax Fund accounts for the payments made for the garbage pick-up in Franklin Parish. Financing is provided by a one-half cent sales tax paid on purchases made in Franklin Parish.

The Drainage Maintenance Fund accounts for maintenance of storm drainage systems and watershed programs in the parish. Financing is provided by ad valorem taxes.

The Parish Equipment Fund accounts for acquisition and maintenance of police jury equipment. Financing is provided by a parishwide ad valorem tax.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the govemment-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance ofthe Govemmental Accounting Standards Board. Govenmients also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The police jury has elected not to follow subsequent private-sector guidance. As a general rule the effect of interfund activity has been eliminated from the govenmient-wide financial statements.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

When both restricted and unrestricted resources are available for use, it is the police jury's policy to use restricted resources first, then unrestricted resources as they are needed.

C. Deposits and Investments

The police jury*s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. State law and the police jury's investment policy allow the police jury to invest in collateralized certificates of deposits, govemment backed securities, commercial paper, the Louisiana Asset Management Pool (a state sponsored investment pool), and mutual funds consisting solely of govemment backed securities. Investments for the police jury are reported at fair value.

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D. Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end ofthe fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfiind loans) or "advances to/from other funds" (i.e., tiie non-current portion of interfimd loans). All other outstanding balances between funds are reported as "due to/from other funds."

Advances between funds, as reported in the fund financial statements, are offset by a fiind balance reserve account in applicable govemmental fiinds to indicate that they are not available for appropriation and are not expendable available financial resources

All property tax receivables are shown net of an allowance for uncollectibles. Ad valorem taxes are assessed on a calendar year basis and attach as an enforceable lien and become due and payable on the date the tax rolls are filed with the recorder of mortgages. Louisiana Revised Statute 47:1993 requires that the tax roll be filed on or before November 15" . Ad valorem taxes become delinquent if not paid by December 31". The taxes are normally collected in December ofthe current year and January and February ofthe ensuing year. The following is a summary of authorized and levied ad valorem taxes:

Parishwide taxes: General:

Outside mimicipalities Inside municipalities

Equipment Health Unit Drainage maintenance Road equipment and salary adjustment Courthouse maintenance Fire district 2 Fire district 3 Fire district 4

Authorized Millage

3.52 1.76 7.84 3.16 10.77 4.19 3.92 10.42 10.37 10.20

Levied Millage

3.65 1.82 8.12 3.24 11.17 4.26 4.07 10.53 15.00 10.66

Expiration Date

Indefinite Indefinite

2012 2010 2012 2018 2012 2010 2017 2010

The difference between authorized and levied millage is the result of reassessments of taxable property within the parish as required by Article 7, Section 18 ofthe Louisiana Constitution of 1974. The following are the principal taxpayers for the parish and their 2009 assessed valuation (amounts expressed in thousands):

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Franklin Parish Police Jury Wirmsboro, Louisiana


Entergy Louisiana, Inc Regency Intrastate Columbia Gulf Transmission Teimessee Gas Pipeline Co Northeast Louisiana Power Bellsouth Telecommunications ANR Pipeline Company Wal-Mart Louisiana, LLC Ron's Warehouse Furniture Wirmsboro State Bank

Total

2009 Assessed Valuation

Percent of Total Assessed

Valuation

$2,486,480 1,808,480 1,696,640 1,417,490 1,409,210 1,328,020 1,238,850 1,073,630

847,873 780,020

$14,086,693

2.97% 2.16% 2.03% 1.69% 1,68% 1,59% 1.48% 1.28% 1.01% 0.93%

16.82%

£. Capital Assets

Capital assets, which include property, plant, equipment, and infi*astructure assets (e.g., roads and bridges) are reported in the applicable govemmental or business-type activities colunms in the govemment-wide financial statements. Capital assets are capitalized at historical cost or estimated cost if historical cost is not available. Approximately 92% ofthe police jury's non-infi-astructure assets are based on actual costs while the remaining 8% are based on the actual historical costs of like items. The cost of infirastructure assets (roads and bridges) acquired prior to 2009 are based on current replacement cost adjusted to their year of acceptance into the parish road system using the U.S. Department of Labor's producer price index. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The police jury maintains a threshold level of $ 1,000 or more for capitalizing capital assets.

The costs of normal maintenance and repafrs that do not add to the value of the assets or materially extend their useful lives are not capitalized.

All capital assets, other than land and constmction in progress, are depreciated using the straight-line method over the following useful lives:

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Franldin Parish Police Jury Winnsboro, Louisiana


Description Infrastructure roads and bridges Buildings and buildmg improvements Furniture and fixtures Vehicles Heavy equipment Other equipment

20 10 5 5 •

5 5

Lives -40 Years - 40 Years - 10 Years - 10 Years - 10 Years - 10 Yenrs

F. Annual and Sick Leave

After one year of service, employees ofthe police jury are granted from 5 to 20 days of annual leave each year, depending upon length of service. Upon resignation or retirement an employee will be compensated for armual leave accumulated to the date of separation, not to exceed 90 days. Any days over 90 will be credited to their retfrement. Employees are granted one day of sick leave for each month of continuous employment and can accumulate up to 90 days sick leave. Employees are not compensated for accumulated sick leave upon separation of service.

Criminal court employees earn from 5 to 10 days of armual leave each year. Sick leave is granted to employees on an as needed basis. Neither armual leave nor sick leave may be accumulated. Employees are not paid for unused armual and sick leave upon separation of service.

The Franklin Parish Tourist Commission has no employees and, therefore, no annual and sick leave policies.

At December 31,2009, employees of the police jury had accumulated and vested S102,809 of employee leave benefits, computed in accordance m\h GASB Codification C60. The liability is recorded within the general long-term obligations account group.

The cost of leave privileges, computed in accordance with the previous codification, is recognized as a current year expenditure within the various fiinds when leave is actually taken or when employees are paid for accmed annual leave upon resignation or retirement, while the cost of leave privileges not requiring current resources is recorded in the general long-term obligations account group.

G, Sales Taxes

On January 19,2002, voters ofthe parish approved the renewal of a one-half of one per cent sales and use tax which is dedicated for the purpose of solid waste collection and disposal.

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Franldin Parish Police Jiuy Winnsboro, Louisiana


The renewal tax is for a period of five years beginning December 1, 2003, and ending November 30, 2008. On November 14,2009, voters ofthe parish approved the renewal of a 1/2% sales and use tax for a period of 5 years. On January 19, 2002, voters of the parish approved the renewal of a one per cent sales and use tax which is dedicated for the constmction, operation, and maintenance of roads and bridges within the parish. The renewal tax is for a period often years beginning July 1,2003, and ending June 30,2013, The police jury entered into an agreement with the Franklin Parish School Board whereby the school board provides collection services for a pro rata fee of the total based on taxes collected by the school board.

On March 5,1985, as provided by Louisiana Revised Statute 33:4574, the police jury levied a two per cent tax on the occupancy of all hotel/motel rooms in the parish. Proceeds ofthe tax are used by the Franklin Parish Tourist Conmnission for the purpose of pramoting tourism in the parish. The Franklin Parish School Board collects and remits the taxes, net of collection costs, to the police jury.

2. CASH AND EQUIVALENTS

Under state law, the police jury may deposit fiinds in demand deposits, interest bearing demand deposits, money market accounts, or time deposits -with state banks organized under Louisiana law and national baiiks having principal offices in Louisiana. At December 31,2009, the pohce jury has cash (book balances), in total of $4,366,505, consisting of demand deposits.

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 ovraed by the 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 m the name ofthe pledging fiscal agent bank in a holding or custodial bank that is mutually acceptable to both parties. Cash (bank balances) at December 31, 2009, are secured in total as follows:

Bank Balances $4,423.139

Federal deposit insurance $475,480 Pledged securities (uncollateralized) 4,008,125

Total $4.483,605

Because the pledged securities are held by a custodial bank in the name ofthe fiscal agent bank rather than in the name ofthe police jury, they are considered uncollateralized (Category 3) under the provisions of GASB Codification C20.106. However, Louisiana Revised Statute 39:1229 imposes a statutory requirement on the custodial bank to advertise and sell the pledged securities within 10 days of being notified by the

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police jury that the fiscal agent bank has failed to pay deposited funds upon demand. Furtlier, LRS 39:1224 states that securities held by a third party shall be deemed to be held in the poHce jury's name.

3. RECEIVABLES

The receivables of $2,279,217 at December 31,2009, are as follows:

Taxes: Ad valorem Sales Alcoholic Beverage

State grants Accounts and other

Total

General Fund

$132,489

3,617 31,187 67,350

$234,643

Special Revenue

Funds

$1,561,163 267,575

192,915 22,921

$2,044,574

Total

$1,693,652 267,575

3,617 224,102

90,271

$2,279,217

4. CHANGES IN CAPITAL ASSETS

Capital assets and depreciation activity as of and for the year ended 12/31/09 is as follows:

Police Jury: Capital assets not being depreciated:

Land Constmction in progress Asset under Capital Lease

Total capital assets not being depreciated Capital assets being depreciated:

Infrastructure - roads Infrastructure - bridges Buildings and improvements Improvements other than buildings Office furniture and equipment Heavy equipment Other equipment Vehicles

Total capital assets being depreciated Less accumulated depreciation for.

Infrastructure - roads Infrastructure - bridges Buildings and improvements

Balance January 1>

$326,766 NONE NONE

326,766

84.413,555 2,354,699 4,765.535 2,593,516

58,054 1,525,614

370,820 1,041.937

97,123,730

(71,415,901) (1,388,644) (2,861,539)

Additions

$215,705 309050 524,955

1,112,656

244,000 2,000

80.950 1,439.606

(759,066) (35,722)

(119,063)

Deletions

NONE

(280,457)

f280.457)

Balance December 31.

$326,766 215,705 309,250 851,721

85,526,211 2,354,699 4,765,535 2,593,516

58,054 1,489,157

372,820 1,122.887

98:282,879

(72,174,967) (1,424,367) (2,980.602)

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Improvements other than buildings Office furniture and equipment Heavy equipment Other equipment Vehicles

Total accumulated depreciation Total capital assets being depreciated (net)

Balance January 1.

($1,114,267) (52,854)

(1.061.694) (270,670) (767,163)

(78,932,732) 18,190,998

Additions ($111,001)

(2,313) (134.012) (29.717) (84,841)

(1,275.736) 163,870

Deletions

$194,877

194,877 (85.580)

Balance December 31.

($1,225,268) (55,167)

(1,000,829) (300387) (852.004)

(80.013,591) 18.269.288

Total capital assets (net) $18.517.764 $688.825 ($85.580) $19.121.009

Depreciation expense as of and for the year ended 12/31/09 was charged as follows:

Amount General government Public safety Public works (including depreciation on road infrastructure) Health and welfare Culture and recreation

Total

$29,725 109,481 967,493 121.375 47,662

$1,275,736

5. PENSION PLAN

Substantially all employees of the Franklin Parish Police Jury are members o f 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 of the police jury are members of Plan A.

All permanent employees working at least twenty-eight hours per week who are paid wholly or in part firom 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 with 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 life, equal to 3 per cent of their final average salary for each year of creditable service. However, for those employees who were members of the supplemental plan only before January 1,1980, the benefit is equal to one per cent of final average salary plus $24 for each year of supplemental-plan-only service earned before January 1, 1980, plus 3 per cent of final-average salary for each year of service credited after the revision date. Final average salary is the employee's average salary over tlie 36 consecutive or jomed 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 contribufions, may retire at the ages specified above and receive the benefits accrued to their date of termination. The system also provides death and disability benefits. Benefits are established or amended by state statute.

•28-



The System issues an annual publicly available report that includes financial statements and required supplementary information for the System. That report may be obtained by writing to the Parochial Employees' Retirement System of Louisiana, Post Office Box 14619, Baton Rouge, Louisiana 70898-4619, or by calhng (504) 928-1361.

Under Plan A, members are required by state statute to contribute 9.50 per cent of their annual covered salary and the franklin Parish Police Jury is required to contribute at an actuarially determined rate. The current rate is 12.25 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) ofthe taxes shown to be collectible 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 Franklin Parish Police Jury are established and may be amended by state statute. As provided by Louisiana Revised Statute 11:103, the employer contributions are determined by actuarial valuation and are subject to change each year based on the results ofthe valuation for the prior fiscal year. The Franklin Parish Police Jury's contributions to the System under Plan A for the years ending December 31,2009,2008, and 2007, were $125,582 , $109,413, and $132,257, respectively, equal to the reqiured contributions for each year.

6. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS

Plan Description. The Franklin Parish Police Jury contributes to a single-employer defined benefit healthcare plan ("the Retiree Health Plan"). The plan provides healthcare insurance for eligible retirees for life through the poHce jury's group health insurance plan, which covers both active and retired members. To receive benefits employees must have at least 30 years of service. Benefit provisions are established by the Franklin Parish Police Jury. The Retiree Health Plan does not issue a publicly available financial report

Effective with the Year ending December 31, 2009, the Franklin Parish Police Jury implemented Govemment Accounting Standards Board Statement Number 45, Accounting and Financial Reporting by Employers for Post employment Benefits Other than Pensions (GASB 45). The statement has been implements prospectively. Using this method, the beginning other post employment benefit (OPEB) liability is set at zero and the actuarially determined OPEB liability relative to past service (prior to January I, 2009) will be amortized and recognized as an expense over thirty years.

Funding Policy. The Franklin Parish Police Jury contributes 100% of the cost of current year health care premiums for eligible retired employees. For the year ended December 31,2009, the Franklin Parish Police Jury contributed $ 11,945 to the plan.

Annual OPEB Cost and Net OPEB Obligation. The police jury's annual OPEB cost (expense) is calculated based on the annual required contribution (ARC) ofthe employer. The Franklin Parish Police Jury has elected to calculate the ARC and related information using the alternative measurement method permitted by GASB 45 for employers in plans witii fewer than 100 total plan members. The ARC represents

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a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components ofthe police jury's annual OPEB costs for the year, the amount actually contributed to the plan, and changes in the police jury's net OPEB obligation to the retiree health plan.

Annual required contribution $387,429 Interest on net OPEB obligation None Adjustment to annual reqiiired contribution None

Annual OPEB cost (expense) 387,429 Contributions made (11,945)

Increase in net OPEB obligation 375,484 Net OPEB obligation at beginning of year None Net OPEB obligation at end of year $375,484

The police jury's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the year 2009 was $387,429, 3%, and $11,945, respectively.

Funded Status and Ftmding Progress. As of December 31,2009, the actuarial accrued liabilityfbrbenefits was $2,429,677, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $958,232, and ratio ofthe unfunded actuarial accrued liability to the covered payroll was 253.56%.

The projection of future benefits for an ongoing plan involves estimates ofthe value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status ofthe plan and the annual required contributions ofthe employer are subject to continual revision as actual results are compared v/ith past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and tiie actuarial value of assets, consistent with the long-term perspective ofthe calculations. The following simplifymg assumptions were made:

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Retirement age for active employees - Based on the historical retirement age for the covered group, active members were assumed to retire at age 55 or when they are eligible to receive benefits, whichever occurs later.

Marital status - Marital status of members at the calculation date were assumed to continue throughout retirement

Mortality - Life expectancies were based on mortality tables from the National Center for Health Statistics. The 2003 United States Life Tables for Males and for Females, revised March, 2007, were used.

Turnover - Non-group-specific age-based turnover data from GASB Statement 45 were used as the basis for assigning active members a probability of remaining employed until the assumed retirement age and for developing an expected future working lifetime assumption for purposes of allocating to periods the present value of total benefits to be paid.

Healthcare cost trend rate - The expected rate of increase in healthcare insxirance premiums was based on projections ofthe Office ofthe Actuary at the Centers for Medicare and Medicaid Services. A rate of 5.5% initially, increased to an ultimate rate of 6.1% after ten years, was used.

Health insurance premiums - 2008 age-adjusted health insurance premiums for retirees were used as the basis for calculation ofthe present value of total benefits to be paid..

Inflation rate ~ A long-term inflation assumption of 3.9% was based.on projected changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) in the 2009 Annual Report ofthe Board of Trustees ofthe Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds for an intermediate growth scenario.

Payroll g}'owth rate - The expected long-term payroll growth rate was assumed to equal the rate of inflation.

Based on the historical and expected returns ofthe police jury's short-term investments, a discount rate 2.00% was used. In addition, a simplified version ofthe entry age actuarial cost method was used. The unfimded actuarial liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at December 31, 2008, is thirty years.

7, DUE FROM/TO OTHER FUNDS

The following presents interfund balances due fi^sm and to other funds at December 31,2009.

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Fund General Special Revenue:

Road and Bridge Health Unit Section 8 Drainage Maintenance Road Equipment and Salary Adjustment Parish Equipment Courthouse Maintenance Tourist Commission Criminal Court Unemployment Escrow Fu-e District No. 2 Fire District No. 4

Total

Due To $15,363

$98,865 21

13,838 1,582

75 179 150 584

500 135

$13U92

Due From $61,246

$11,758

678 2,066 2,473

51,210 654

1,207

$131,292

8. CAPITAL LEASES

The police jury records items under capital leases as an asset and an obligation in the accompanymg financial statements. At December 31,2009, the police jury has three capital leases in effect. The leases in effect are for an excavator, a trailer and a truck. The lease for the excavator has an original recorded amount of $ 179,500. Lease obligations are retired from the police jury's parish equipment fund. The second lease for the trailer has an original recorded amount of $40,250. Lease obligations are retired from the police jury's parish equipment fund. The third lease for the truck has an original recorded amount of $89,500. Lease obligation are retired from the police jury's parish equipment fund. The following is a summary of future minimum lease payments, together with the present value of the net minimum lease payments, as of December 31,2009:

Year Principal Interest Total 2010 $70,762 $8,549 $79,311 2011 73,242 6,069 79,311 2012 136,019 2,540 138,559 Present value of net minimum lease $280,023 $17,158 $297,181

9. CHANGES IN GENERAL LONG-TERM OBLIGATIONS

The following is a summary of long-term obligation transactions for the year ended December 31,2009:

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Franklin Parish Pohce Jury Winnsboro, Louisiana


Long-term obligations at January 1 ^ Additions Deductions Adjustments'

Long-term obligations at December 31^^

Compensated Absences

$98,122 $36,203 (41,101)

9,585

Capital Leases NONE

$309,250 (29,227)

Total $98,122

$345,453 (70,328)

9,585

$102,809 $280,023 $382,832

'As discussed in note IG, upon separation from employment, employees are paid for accumulated leave at their current rate of pay. The adjustment is for the purpose of adjusting amounts for annual leave resulting from the differences between beginning and ending rates of pay and to reflect the maximum accumulation of ninety days.

10. RISK MANAGEMENT

The police jury is exposed to various risk of loss related to torts; theft of, damage to, and destruction of assets; liability; and injuries to employees and others. To handle risk of loss, the police jury maintains commercial insurance covering; automobile liability; general liability; public officials liability; and worker's compensation and employer's liabiUty. No claims were paid on any ofthe policies during the past three years which exceeded the policies' coverage amounts.

11. WORKFORCE INVESTMENT ACT PROGRAM

The Workforce Investment Act Fimd (WIA) accounts for federally funded job assistance programs designed to develop job skills for economically disadvantaged parishes of Richland, Franklin, Tensas, Madison, East Carroll, Caldwell, and Jackson. Funding is provided by the United States Department of Labor through the Louisiana Department of Labor. Funds are subsequently transferred to the administrative entity (subrecipient) for actual operation ofthe program.

12. LITIGATION AND CLAIMS

At December 31, 2009, the police jury is involved in several lawsuits. Although the total amount of potential liability cannot be detemiined at this time, any damages awarded would be covered under the police jury's insurance. In the event there is an unfavorable outcome, the police jury's maximum loss would be limited to the insurance deductible amoimt. No provision for the potential liability has been made in the accompanying financial statements.

-33-

*^ww&«,fe„ -»"^«/-«.„.,,^,„,,^

'34-


Required Supplementary Information Budgetary Comparison Schedules for Major Funds


Preliminary budgets for the ensuing year are prepared by the secretary/treasurerprior to November of each year. During November, the finance committee reviews the proposed budgets and makes changes as they deem appropriate. The availability ofthe proposed budgets for pubhc inspection and the date ofthe public hearing on the budgets are then advertised in the official journal. During its regular December meeting, the police jury holds a public hearing on the proposed budget in order to receive comments from residents. Changes are made to the proposed budgets based on the public hearing and the desires of the police jury as a whole. The budgets are then adopted during the police jury's regular December meeting, and a notice is published tn the official journal.

During the year, the police jury receives monthly budget comparison statements which are used as a tool to control the operations ofthe parish. The secretary/treasurer presents necessary budget amendments to the police jury during the year when, in his judgement, actual operations are differing materially from those anticipated in the original budget. The jury, during a regular meeting, reviews the proposed amendments, makes changes as they feel necessary, and formally adopts the amendments. The adoption ofthe amendments is included in police jury minutes published in the official journal.

The police jury exercises budgetary control at the function level. Unexpended appropriations lapse at year end and must be reappropriated in the next year's budget to be expended.

For the year ended December 31, 2009, modified accmal based budgets were adopted for the General Fund and all special revenue fimds. Budgetary comparison schedules include the original budgets and all subsequent amendments.

-35-

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Franklin Parish Police Jury Employee Health Care Plan

December 31, 2009

Schedule of Funding Progress

Schedule 2

Actuarial Valuation

Date

December 31, 2008

Actuarial Value of Assets

Actuarial Accrued Liability (AAL)

Unfunded Actuarial Accrued Liability (UAAL)

Funded Ratio

Covered Payroll

$0 $2,429,677 S2,429,677 0.00% $958,232

UAAL as a Percentage of Covered

Payroll

253.56%

Note: Generally accepted govemmental accounting prmciples (GASB Codification Po50.131-132) require that the schedule present information from the last three actuarial valuations. Because the requirements of GASB 45 were implemented starting with the year ended December 31,2009, only one year is available. Additional information will be added after each of the next two valuations. Subsequent to that, information will be presented for the latest three valuations.

•39-

Other Supplemental Schedules

-40-


SUPPLEMENTAL INFORMATION SCHEDULES

As of and for the Year Ended December 31, 2009

SPECL\L REVENUE FUNDS

MAINTENANCE FUNDS

Courthouse Maintenance Fund The Coiirthouse Maintenance Fund accounts for maintenance ofthe courthouse building, equipment, and grounds. Financing is provided by a parishwide ad valorem tax and state revenue sharing funds.

Health Unit Maintenance Fund

The Health Unit Maintenance Fund accounts for maintenance ofthe parish health unit and the local share ofthe health unit operation. Financing is provided by ad valorem taxes and state revenue sharing funds.

WORKFORCE INVESTMENT ACT FUND

The Workforce Investment Act (WIA) Fund accounts for grants from the United States Department of Labor passed through the Louisiana Department of Labor. Grants are subsequently transferred to the Franklin Parish Community Action Association, Incorporated, which administers the program under contract with the police jury. The WIA program pro vides job training and related assistance to economically disadvantaged individuals. The ultimate goal ofthe program is to move trainees into permanent, self-sustaining employment.

ROAD EQUIPMENT AND SALARY ADJUSTMENT FUND

The Road Equipment and Salary Adjustment Fund accoimts for purchases of equipment and annual compensation of employees of tlie parish. Financing is provided by ad valorem taxes, and state revenue sharing ftmds.

SECTION 8 HOUSING FUND

The Section 8 Housing Fund provides housing assistance payments to participating owners onbehalf of ehgible tenants to provide decent, safe, and sanitary housing for very low income families at rents they can afford. Housing assistance payments are used to make up the difference between the approved rent due to the owner for the dwelling unit and the occupant family's required contribution towards the rent.

Assisted families are required to contribute up to 30 per cent of their adjusted family income towards rent. Funding is provided through the United States Department of Housing and Urban Development.

WTFNESS FEE FUND

The Witness Fee Fund was established to pay off-duty law enforcement officers. Financing is provided by fines paid by defendants who are found guilty.

-41-

CRIMINAL COURT FUND

The Criminal Court Fund accounts for all criminal court expenses. Financing is provided by criminal costs and fines.

TOURIST COMMISSION FUND

The Tourist CommissionFund accounts for the promotion of tourism within Franklin Parish. Financing is provided by a two per cent hotel/motel sales tax.

UNEMPLOYMENT ESCROW

The Unemployment Escrow Fund accounts forthe jury's self-insurance program. Funds are provided by transfers from other funds.

FIRE DISTRICT NO. 2

The Fire District Fxmd No. 2 accounts for operations ofthe fire district. Financing is provided by ad valorem taxes.

FIRE DISTRICT NO. 3

The Fire District Fund No. 3 accounts for operations ofthe fire district. Financing is provided by ad valorem taxes.

FIRE DISTRICT NO. 4

The Fire District Fund No. 4 accounts for operations ofthe fire district. Financing is provided by ad valorem taxes.

-42-

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OTHER GOVERNMENTAL FUNDS - MAINTENANCE FUNDS

Combining Balance Sheet, December 31,2009

Schedule 5

ASSETS Cash and cash equivalents Receivables Due from other funds

TOTAL ASSETS

LIABILITIES AND FUND EQUITY

Liabilities: Accounts payable Due to other fiinds Deferred revenue - protest taxes

Total liabilities Fund Equity - fiind balances -

unreserved -undesignated

TOTAL LIABILITIES AND FUND EQUITY

COURTHOUSE

$276,000

203,770

179

$479,949

HEALTH UNIT

$182,038

162,215

21

$344,274

TOTAL

$458,038

365,985

200

$824,223

$9,406

654

31,749

41,809

438,140

$479,949

$15,786

25,284

41,070

303,204

$344,274

$25,192

654

57,033

82,879

741,344

$824,223

-45-

Schedule 6 FRANKLIN PARISH POLICE JURY

Winnsboro, Louisiana OTHER GOVERNMENTAL FUNDS - MAINTENANCE FUNDS

Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances


HEALTH COURTHOUSE UNIT TOTAL

REVENUES Taxes - Ad valorem State fiinds - state revenue sharing Use of money and property Other revenues

Total revenues

EXPENDITURES Current - general government Health and welfare Capital outlay

Total expenditures

EXCESS OF REVENUES OVER EXPENDITURES

OTHER FINANCING USE Operating transfers out

EXCESS OF REVENUES OVER EXPENDITURES AND OTHER USE FUND BALANCES AT

BEGINNING OF YEAR

FUND BALANCES AT END OF YEAR

$225,694 $179,668 $405,362 20,948 16,676 37,624 2,798 1,992 4,790

375 375 249,815

214,378

2,000

216,378

33,437

33,437

404,703

$438,140

198,336

132,865

132,865

65,471

(47,230)

18,241

284,963

$303,204

448,151

214,378

132,865

2,000

349,243

98,908

(47,230)

51,678

689,666

$741,344

-46-

Schedule 7


OTHER GOVERNMENTAL FUNDS - FIRE DISTRICT FUNDS

Combining Balance Sheet, December 31,2009

FIRE FIRE FIRE DISTRICT 2 DISTRICT 3 DISTRICT 4 TOTAL

ASSETS Cash and cash equivalents Receivables Due fix)m other fiinds

TOTAL ASSETS

LIABILiriES AND FUND EQUITY

Liabilities: Accounts payable Deferred revenue - protest taxes

Total liabilities Fund Equity - fijnd

balances -unreserved -undesignated

TOTAL LIABILITIES AND FUND EQUITY

$180,980 $132,736 $183,834 $497,550 69,280 18.951 43,776 132,007

500 135 635

$250,760 $151,687 $227,745 $630,192

$14,846 $3,447 $5,655 $23,948 47,567 11,073 1,209 59,849 62,413 14,520 6,864 83,797

188,347 137,167 220,881 546,395

$250,760 $151,687 $227,745 $630,192

-47-


OTHER GOVERNMENTAL FUNDS - FIRE DISTRICT FUNDS

Schedule 8

Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances


FIRE FIRE FIRE DISTRICT 2 DISTRICTS DISTRICT 4 TOTAL

REVENUES Taxes - Ad valorem State funds - Fire insurance rebate Fees, Charges and Commissions for Services Use of money and property

Total revenues

EXPENDITURES Current - public safety Capital outlay

Total expenditures

NET CHANGE IN FUND BALANCE

FUND BALANCES AT BEGINNING OF YEAR

FUND BALANCES AT END OF YEAR

$66,468 8,923

31,485 1.763

108,639

118,214

11,000 129,214

(20,575)

208,922

SI 88.347

$31,762 4.255

1,040 37,058

15,249

15^249

21,809

115,358

$137,167

$58,212 8,805

2,027 69,044

25,946

60,000 85,946

(16,902)

237,783

$220,881

$156,442 21,984 31,485 4,830

214,741

159,409

71,000 230,409

(15,668)

562,063

$546,395

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SUPPLEMENTAL INFORMATION SCHEDULES As of and for the Year Ended December 31,2009

COMPENSATION PAID POLICE JURORS

The schedule of compensation paid to police jurors is presented in compliance with House Concurrent Resolution No. 54 ofthe 1979 Session ofthe Louisiana Legislature. Compensation ofthe policejurors is included in the legislative expenditures of the General Fund. In accordance with Louisiana Revised Statute 33:1233, the police jury has elected the monthly payment method of compensation. The president receives $900 per month, and the other jurors receive $750 per month.

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Winnsboro, Louisiana

Schedule of Compensation Paid Police Jurors For the Year Ended December 31, 2009

Ricky Campbell $9,000 Troy Hendry 9,000 Harvey GuunbeDot (President) 10,800 Jackie R. Johnson 9,000 Leroy Scott 9,000 Buddy Parks 9,000 James Harris 750 Ray Young NONE

Total $56,550

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Schedule of Expenditures of Federal Awards For the Year Ended December 31,2009

FEDERAL GRANTOR/ PASS-THROUGH GRANTOR/ PROGRAM NAME

United States Department of Labor Passed through Louisiana Department of Labor:

Workforce Investment Act - Adult Program Workforce Investment Act - Youth Activities Workforce Investment Act - Dislocated Workers

Total Department of Labor United States Department of Commerce

Public Safety Interoperable Communications Grant Public Safety Interoperable Cbntniunications Grant

United States Department of Housing and Urban Development Direct program - Lower-Income

Housing Assistance Program Total Department of Housing and Urban Development

United States Department of Homeland Security Homeland Security Grant Program Disaster Grants Disaster Grants

SHSP-F^2005

SHSP-FY2006 Total Department of Homeland Security

Federal Emergency Management Agency

Hazard Mitigation Grant Program

Total Federal Emergency Management Agency

United States Department of Interior Direct program - Payment in Lieu of Taxes

Total United State Department of Interior Total Federal Financial Assistance

CFDA NUMBER

17.258 17.259 17.260

11.555 11.555

14.156

97.067 97.036 97.036

97.067

97.067

97.039

15.000

PASS-THROUGH

GRANT NUMBER

N/A N/A N/A

2008-IO-T8-0011 PSIC 2007

N/A

N/A N/A N/A

2005-GE-T5-0004

2006-GE-T6-0069

htMA-1603-DR-0079

N/A

FEDERAL EXPENDITURES

$480,630 704,328 769.213

1.954,171

222 44.598 44.820

41.910 41.910

31,179 35,633

730,658

18,304

35,952 851.726

203,938

203.938

172 172

$3,096,737

FOOTNOTES: (1) The Schedule of Expenditures of Federal Awards was prepared on the modified accrual basis of accounting. (2) The Workforce Investment Act Cluster and Technical Assistance for Needy Families are reported for the year ended June 30, 2009.

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f Other Reports

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Independent Auditor's Reports on Compliance with Laws, Regulations, Contracts, and Grants,

and Internal Control

The following independent Auditor's reports on compliance with laws, regulations, contracts, and grants and internal control are presented in compliance with the requirements of Govemment Auditing Standards, issued by the Comptroller General ofthe United States; the U. S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Govemments, and Non-Profit Organizations; the Single Audit Act Amendments of 1996; and ihc Louisiana Govemmental Audit Guide, issued by the Society of Louisiana Certified Public Accountants and the Louisiana Legislative Auditor.

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Member American MARY JO FINLEY, CPA, INC. Member Society of Institute of Certified Louisiana Ccrtiiied Public Accountants -^ PROFESSIONAL CORPORATION Public Accountants


P h o n e (318) 329-8880 - Fax (318) 3 2 9 - 8 8 8 3

Report on Internal Control Over Financial Reporting and on Compliance and Other Matters

Based on an Audit of Financial Statements Performed in Accordance Government Auditing Standards


I have audited the basic financial statements ofthe Franklin Parish Police Jury as of and for the year ended December 31, 2009 and have issued my report thereon dated February 18,2010. I conducted my audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General ofthe United States.

Internal Control Over Financial Reporting In planning and performing my audit, I considered Franklin Parish Police Jury's internal control over financial reporting as a basis for designing my auditingprocedures for the purpose of expressing my opinion on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Franklin Parish Police Jury's internal control over financial reporting. Accordingly, I do not express an opinion on the effectiveness ofthe Franklin Parish Police Jury's internal control over financial reporting.

A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing then- assigned fimcfions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Franklin Parish Police Jury's financial statements that is more than inconsequential will not be prevented or detected by the Franklin Parish Police Jury's internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Franklin Parish Police Jury's internal control.

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Practice Limited tn Govemmentnl Accounting. Auditing and Financinl Reporting

FRANKLIN PARISH POLICE JURY Wirmsboro, Louisiana Independent Auditor's Report on Compliance

And Internal Control Over Financial Reporting, etc. December 31, 2009

My consideration of internal control over financial reporting was for the hmited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies m internal control that might be significant deficiencies or material weaknesses. I did not identify any deficiencies in internal 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 Franklin Parish Police Jury's basic financial statements are te of material misstatement, I performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial amounts. However, providing an opinion on comphance with those provisions was not an objective of my audit and, accordingly, I do not express such an opinion. The results of my tests disclosed one instance of noncompliance or other matters that is required to be reported under Govemment Auditing Standards and is included as finding 09-01 in the accompanying schedule of audit findings.

This report is mtended solely for the information and use of the Franklin Parish Police Jury, management, and the Legislative Auditor and is not intended to be and should not be used by anyone 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 public document.

West Monroe, Louisiana February 18, 2010

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Member American MARY JO FINLEY, CPA, INC. Member Society of Institute of Certified Louisiana Certified Public Accountants ^ PROFESSIONAL CORPORATION p^bUc Accountants


P h o n e (318) 329-8880 - Fax (318) 3 2 9 - 8 8 8 3

Report on Compliance With Requirements Applicable to Each Major Program and Internal Control

Over Compliance in Accordance With OMB Circular A-133

Franklin Parish Police Jxny Winnsboro, Louisiana

Compliance I have audited the compliance of Franklin Parish Police Jury with the types of compliance requirements described in the U. S. Office ofManagemejit and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to its major federal program for the year ended December 31,2009. Franklin Parish Police Jury's major federal program is identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to its major federal program is the responsibility of Franklin Parish Police Jury's management. My responsibility is to express an opinion on Franklin Parish Police Jury's compliance based on ray audit.

I conducted my audit of comphance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Govemments, andNon-Profit Organizations. Those standards and OMB Circular A-133 require that I plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Franklin Parish Police Jury's compliance with those requirements and performing such other procedures as I considered necessary in the circumstances. I believe that my audit provides a reasonable basis for my opinion. My audit does not provide a legal determination on Franklin Parish Police Jury's compliance with those requirements.

In my opinion, Franklin Parish Police Jury complied, in all material respects, with the requhements referred to above that are applicable to its major federal program for the year ended December 31,2009. The results of my auditing procedures disclosed no mstances of noncompliance with those requu-ements that are required to be reported in accordance with OMB Circular A-133.

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Prnciice Limited io Govemmentnl Accounting. Auditing and Financinl Reporting


Report on Compliance With Requirements Applicable to Each Major Program and Internal Control Over Compliance, etc.

December 31,2009

Internal Control Over Compliance The management of Franklin Parish PoUce Jury is responsible for establishing and maintaining effective internal control over compliance with requirements oflaws, regulations, contracts and grants applicable to federal programs. In planning and performing my audit, I considered Franklin Parish Police Jury's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine my auditing procedures for the purpose of expressing my opinion on compliance and to test and report on internal control over compliance in accordance with OMBCu-cularA-133.

A control deficiency is an entity's internal control over compliance 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 noncompliance with a type of compliance requirement of a federal program on a timely basis. A sigfiiflcant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more inconsequential will not be prevented or detected by the entity's internal control.

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

This report is intended for the information ofthe members of Franldin Parish Police Jury, management ofthe police jury, federal awarding agencies and pass-through entities, and the Legislative Auditor, and is not intended to be and should not be used by anyone other than these specified parties. Although the intended use of this report may be limited, under Louisiana Revised Statute 24:513, it is issued by the Legislative Auditor as a public document.

^H?^i&x., West Monroe, Louisiana February 18, 2010

^ ^ ^ - — ^ ^ - ^ ^ ^ ^

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Schedule of Audit Findings For the Year Ended December 31,2009

A. SUMMARY OF AUDIT RESULTS

1. The auditor's report expresses an unqualified opinion on the primary govemment financial statements ofthe Franldin Parish Police Jiiry.

2. No significant deficiencies relating to the audit ofthe financial statements is reported in the Independent Auditor's Report on Compliance and Internal Control Over Financial Reporting.

3. One instance of noncompliance material to the financial statements ofthe Franklin Parish Police Jury is reported in the Auditor's Report on Compliance and Internal Control Over Financial Reporting.

4. No significant deficiencies relating to the audit of the major federal award programs are reported in the Auditor's Report on Compliance With Requhrements AppHcable to Major Programs and Internal Control Over Compliance.

5. The auditor's report on compliance for die major federal award programs for the Franklin Parish Police Jury expresses an unquahfied opim'on.

6. No audit findings relative to the major federal award programs for the Franklin Parish Police Jury are reported.

7. The Workforce Investment Act (WIA) Cluster was tested as major programs and consisted of the following individual programs:

CFDA No. Workforce Investment Act - Adult Program 17.258 Workforce Investment Act - Youth Activities 17.259 Workforce Investment Act - Dislocated Workers 17.260

8. The threshold for distinguishing Type A and B programs was $300,000.

9. The Franklm Parish Police Jury was determined to be a low-risk auditee.

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Schedule of Audit Findings (Continued) For the Year Ended December 31, 2009

B. FINDINGS - FINANCIAL STATEMENTS AUDIT

09-01 Need to Comply With Budget Act

Finding; Thepolicejury did not comply with the Local Govemment Budget Act LSA-R.S. 39:1310-1311 requires, among other things, that the police jury amend an individual fund's budget when actual revenues and other sources to date plus projected amounts to year-end are failing to meet budgeted amounts by five percent or more and/or when actual expenditures and other uses to date plus projected amounts to year-end are exceeding budgeted amounts by five percent or more. The General fund budgeted revenues and other sources exceeded actual revenues by approximately 16%. Parish Equipment actual expenditures also exceeded budgeted amounts by approximately 15%. The Unemployment Escrow fund budgeted revenue amounts exceeded actual revenues by approximately 5% and actual expenditures exceeded budgeted expenditures by approximately 204%.

Recommendation: Both management and the finance committee must have monthly financial statementswith which to monitor and control expenditures. Because thepolicejury as a body is ultimately responsible for compliance with laws and regulations, the finance committee should take an active role in reviewing and monitoring financial activity and any budget deficiencies should be corrected.

C, FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT

None

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Scheduled FRANKLIN PARJSH POLICE JURY


Sunmiary Schedule of Prior Audit Findings For the Year Ended December 31,2009

08-1 Finding: The police jury did not comply with the Local Govemment Budget Act.

Recommendation: Budget comparisons should be monitored monthly to assure compliance with the Local Govemment Budget Act.

Status: The finding has not been corrected and is included in the current year Schedule of Audit Findings as Finding 09-01.

08-2 Finding: The police jury needs to improve internal control over all funds.

Recommendation: Both management and the finance committee must have monthly financial statements with which to monitor and control revenues and expenditures. Because the police jury as a body is ultimately responsible for compliance with laws and regulations, the finance conmiittee should take an active role in reviewing and monitoring financial activity.

Status: The finding has been corrected.

•60-

OFFICERS:

President Ricky Campbell jurors i^frankfinparfsh.arg

Vice President Buddy Parks jurors® Iranklinparlsh.org

Parish Superintendent Greg HumphrleB grag.fppj® beUsouth.net

„umnit»n«,„

6556 MAIN STREET • WINNSBORO, LA 71295 PHONE {318) 435-9429 • FAX (318) 435-9420

OFFICERS:

Treesurer/Office Manager Sam Wiggins samvflggins©(ranklinparl5h.org

Secwtary Johnnie L. Wesley [email protected]

Director of Emergency Prepardness Mitch Reynolds [email protected]

February IS, 2010

Louisiana Legislative Auditors Office Steve Theriot, Legislative auditor P.O. 80X94397 1600 North Third Street Baton Rouge, LA 70804

Mr. Theriot;

I am writing in response to the findings ofthe FY2009 audit performed by Mary Jo Finley, CPA, Inc. regarding non-comptiance writh the Local Government Budget Act. The Franklin Parish Police Jury Finance Committee and the Parish Treasurer will make an extra effort to monitor each fund every month to ensure proper adjustments are made in a timely manner.

Sincerely,

/ & j y ( f , . , y i M ^ Rickey Campbell Parish Persident

CtetrfctT Ricky Campbell

DlstrfctZ K. W. -Buddy- Parks

District 3 James Harris

m^fBEBSl District 4

Trov Hendrv Districts

Lerov Scoll District 6

HpfUfHr HAU RiiimhfllW District 7

.l»rltlo.tnhncnn

mailto:[email protected]

mailto:[email protected]

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