MARY JO FINLEY, CPA, INC. - app1.lla.la.gov fileUNION PARISH SHERIFF Farmerville, Louisiana Annual...

, ,.„,„ RECEIVED*„, LEGISLATIVE AUDITOR

2008DEC-I AH 10-19f' SBiD Jli

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UNION PARISH SHERIFFFarmerville, Louisiana

Annual Financial StatementsWith Independent Auditor's Report

As of and for the Year EndedJune 30, 2008

With Supplemental Information Schedules

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

Release Date

MARY JO FINLEY, CPA, INC.A PROFESSIONAL CORPORATION


Annual Financial StatementsWith Independent Auditor's Report

As of and for the Year Ended June 30, 2008With Supplemental Information Schedules

C O N T E N T S

Independent Auditor's Report

Required Supplemental Information (Part I)

Management's Discussion and Analysis

Basic Financial Statements

Government-Wide Financial Statements:

Statement of Net Assets

Statement of Activities

Fund Financial Statements:

Governmental Funds:

Balance Sheet

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

Statement of Revenues, Expenditures, and Changes in Fund Balances

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

Fiduciary - Agency Funds:

Statement of Fiduciary Net Assets

Notes to the Financial Statements

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Page No.

Statement Page No.

A

B

C

D

12

13

14

15

16

18

19

20


Contents, June 30, 2008

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

Schedule Page No.

Required Supplemental Information (Part II):

Budget Comparison Schedules - General Fund 1 31

Note to Budgetary Comparison Schedule 33

Other Supplemental Schedules (Part III):

Fiduciary Fund Type - Agency Funds -Schedule of Changes in Unsettled Balances

Due to Taxing Bodies and Others 2 36

Reports Required by GovernmentAuditing Standards (Part IV)

Independent Auditor's Report Required byGovernment Auditing Standards:

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

Schedule of Audit Findings 3 42

Summary Schedule of Prior Audit Findings 4 43

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

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

Independent Auditor's Report


I have audited the basic financial statements of the Union Parish Sheriff, a component unit of Union ParishPolice Jury, as of June 30,2008, and for the year then ended, as listed in the table of contents. These generalpurpose financial statements are the responsibility of the Union Parish Sheriffs management. Myresponsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with U.S. generally accepted auditing standards and GovernmentAuditing Standards, issued by the Comptroller General of the United States. Those standards require thatI plan and perform the audit to obtain reasonable assurance about whether the general purpose financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the general purpose financial statements. An audit also includesassessing the accounting principles used and significant estimates made by management, as well asevaluating the overall general purpose financial statement presentation. I believe that my audit provides areasonable basis for my opinion.

In my opinion, the basic financial statements referred to above present fairly, in all material respects, thefinancial position of the Union Parish Sheriff as of June 30, 2008, and the changes in its financial positionfor the year then ended in conformity with U.S. generally accepted accounting principles.

Management's discussion and analysis, and supplementary information on pages 6 through 10 and 31through 33, respectively are not a required part of the basic financial statements, but are supplementaryinformation required by the Governmental Accounting Standards Board. I have applied certain limitedprocedures, which consisted principally of inquiries of management regarding the methods of measurementand presentation of the required supplementary information and reviewing the source of selectedinformation. However, I did not audit the information and express no opinion on it.

My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole.The supplemental information schedules listed in the table of contents are presented for the purpose ofadditional analysis and are not a required part of the basic financial statements of the Union Parish SheriffSuch information has been subjected to the auditing procedures applied in the audit of the basic financialstatements and, in my opinion, is fairly presented in all material respects in relation to the basic financialstatements taken as a whole.

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Practice Limited to Governmental Accounting, Auditing and Financial Reporting

UNION PARISH SHERIFFFarmerville, LouisianaIndependent Auditor's Report,

June 30, 2008

In accordance with Government Auditing Standards, I have also issued a report dated November 10, 2008,on my consideration of the Union Parish Sheriffs internal control over financial reporting and my tests ofits compliance with certain provisions of laws, regulations, contracts and grants. That report is an integralpart of an audit performed in accordance with Government Auditing Standards and should be read inconjunction with this report in considering the results of my audit.

West Monrofe^ouisianaNovember 10, 2008

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REQUIRED SUPPLEMENTARY INFORMATIONPARTI

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Management's Discussion and AnalysisJune 30, 2008

As management of the Union Parish Sheriff, I offer readers of the Union Parish Sheriff s financial statementsthis narrative overview and analysis of the financial activities of the Union Parish Sheriff for the fiscal yearended June 30,2008. Please read it in conjunction with the basic financial statements and the accompanyingnotes to the financial statements.

Overview of the Financial Statements

This Management Discussion and Analysis document introduces the Sheriffs basic financial statements.The annual report consists of a series of financial statements. The Statement of Net Assets and theStatement of Activities (Government-wide Financial Statements) provide information about the financialactivities as a whole and illustrate a longer-term view of the Sheriffs finances. The Balance Sheet andStatement of Revenues, Expenditures and Changes in Fund Balance - Governmental Fund (Fund FinancialStatements) tell how these services were financed in the short term as well as what remains for futurespending. Fund Financial Statements also report the operations in more detail than the Government-WideFinancial Statements by providing information about the most significant funds. This report also containsother supplementary information in addition to the basic financial statements themselves.

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

Government-wide financial statements. The government-widefinancialstatements are designed to providereaders with a broad overview of the Union Parish Sheriffs finances, in a manner similar to a private-sectorbusiness.

The statement of net assets presents information on all of the Union Parish Sheriffs assets and liabilities,with the difference between the two reported as net assets. Over time, increases or decreases in net assetsmay serve as a useful indicator of whether the financial position of the Union Parish Sheriff is improvingor deteriorating.

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

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

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

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

The Union Parish Sheriff adopts an annual appropriated budget for the general fund. A budgetarycomparison statement is provided to demonstrate compliance with this budget.

Fiduciary funds. Fiduciary (agency) funds are used to account for resources held for the benefit of partiesoutside the government. Since these resources are not available to support the Union Parish Sheriffsprograms, Fiduciary (agency) funds are not reflected in the government-wide financial statement.

Notes to the financial statements. The notes provide additional information that is essential to a fullunderstanding of the data provided in the government-wide and fund financial statements.

Other Information in addition to the basic financial statements and accompanying notes, this report alsopresents certain required supplementary information concerning the Union Parish Sheriffs performance.

The combining schedules for nonmajor governmental funds are presented immediately following therequired supplementary information.

Government-wide Financial Analysis

As noted earlier, net assets may serve over time as a useful indicator of a government's financial position.At the close of the most recent fiscal year, assets of the Union Parish Sheriff exceeded liabilities by$2,316,766. Approximately 18% of the Union Parish Sheriffs net assets reflects its investment in capitalassets (equipment), less any related debt used to acquire those assets that is still outstanding. These assetsare not available for future spending. Although the investment in capital assets is reported net of relateddebt, the resources needed to repay this debt must be provided from other sources.

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An additional portion of the Union Parish Sheriffs net assets represents resources that are subject to externalrestrictions (e.g., debt service). The balance in unrestricted net assets is affected by two factors: 1) resourcesexpended, over time, by the Union Parish Sheriff to acquire capital assets from sources other than internallygenerated funds (i.e., debt), and 2) required depreciation on assets included in the statement of net assets.

The following is a comparative analysis of government-wide data.

STATEMENT OF NET ASSETS

ASSETS 2008 2007

Cash and cash equivalents $ 1,776,394 $ 1,318,811Receivables 254,134 254,754Due from other funds 803 15,400Capital assets (net of accumulated depreciation) 412,761 417,152

TOTAL ASSETS $2.444.092 $2.006.117

LIABILITIESAccounts payable $30,140 $53,408Withholdings payable 74,927Salaries payable 91,188Unearned revenue 14,763Interest payable 1,040Long-term liabilities -

Due within one year 5,998 36.749

TOTAL LIABILITIES 127.326 180.887

NET ASSETSInvested in capital assets, net of related debt 412,761 417,152Unrestricted 1,904,005 1,408,078

TOTAL NET ASSETS $2,316,766 $1.825.230

STATEMENT OF ACTIVITIES

Public safety: 2008 2007

Personal services $2,077,068 $1,805,022Operating services 505,971 535,883Materials and supplies 318,219 218,532Travel 47,473 30,099Debt service - interest 743 5,514Depreciation expense 169,965 158,083Intergovernmental 5,922 6,464

Total Program Expenses 3,125,361 2,759,597Program revenues:

Civil and criminal fees 399,266 320,094Commissions on license and taxes 51,186 50,817Court attendance 7,590 6,596Transportation of prisoners -• 3,002 3,569Bond fees 15,798 19,185Accident reports 17,468 7,934

Total program revenues 494,310 408,195Net Program Expenses (2,631,051) (2,351,402)

General revenues:Taxes:

Ad valorem 565,348 482,541Sales 2,173,497 2,115,805

Grants and contributions not restricted to specific programs:Federal sources $15,743 $85,182State sources 286,801 214,787Local 4,913 3,583

Interest earned 48,641 30,956Miscellaneous 5,524 175Special items:

Gain (loss) on sale of assets 20,067 (7,733)Insurance recovery 2,053

Change in Net Assets 491,536 573,894

NET ASSETS

Beginning of year 1,825.230 1,251,336End of year $2.316.766 $1.825.230

Financial Analysis of the Government's Funds

As noted earlier, the Union Parish Sheriff uses fund accounting to ensure and demonstrate compliance withfinance-related legal requirements. The focus of the governmental funds is to provide information on near-term inflows, outflows, and balances of expendable resources. Such information is useful in assessing thefinancing requirements. In particular, unreserved fund balance may serve as a useful measure of agovernment's net resources available for spending at the end of the fiscal year.

As of June 30,2008, combined governmental fund balances of $1,910,003 showed an increase of $464,136over June 30, 2007.

General Fund Budgetary Highlights

Differences between revenues of the original budget and the final budget were due to an increase in advalorem tax, sales tax, federal grants, state grants, civil and criminal fees, and use of money and property.Differences between expenditures in the original and final budget were due to an increase in personalservices, materials and supplies, travel and other charges, and capital outlay and a decrease in operatingservices.

Capital Asset and Debt Administration

Capital assets. The Union Parish Sheriffs investment in capital assets for its governmental activities asof June 30,2008, amounts to $412,761 net of accumulated depreciation). This investment includes vehicles,furniture, and equipment. The increase in capital assets for the year was $190,107. The decrease of$160,694 was due primarily to the trade in of several old law enforcement vehicles.

Long-term debt. At the end of the fiscal year, Union Parish Sheriff had total debt outstanding, in the formof compensated absences of $5,998. No new leases were entered into during the year ended June 30,2008.During the year ended June 30, 2008, $28,534 of debt was paid in accordance with the lease agreements.

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Requests for Information

This financial report is designed to provide a general overview of the Union Parish Sheriffs finances forall those with an interest in the government's finances. Questions concerning any of the informationprovided in this report or requests for additional financial information should be addressed to the UnionParish Sheriff, P.O. Box 723, Farmerville, LA 71241.

November 10,2008

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BASIC FINANCIAL STATEMENTS

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STATEMENT OF NET ASSETSJune 30, 2008

Statement A

ASSETSCash and cash equivalentsReceivablesDue from other fundsCapital assets (net of accumulated depreciation)

TOTAL ASSETS

LIABILITIESAccounts payableSalaries payableLong-term liabilities:

Due within one year

TOTAL LIABILITIES

NET ASSETSInvested in capital assets, net of related debtUnrestricted

TOTAL NET ASSETS

$1,776,394254,134

803412,761

$2,444,092

$30,14091,188

5,998

127,326

412,7611,904,005

$2,316,766

The accompanying notes are an integral part of this statement.

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Statement BUNION PARISH SHERIFF

Farmerville, LouisianaSTATEMENT OF ACTIVITIES

June 30, 2008

Public safety:Personal services $2,077,068Operating services 505,971Materials and supplies 318,219Travel 47,473Debt service - interest 743Depreciation expense 169,965Intergovernmental 5,922

Total Program Expenses 3,125,361Program revenues:

Civil and criminal fees 399,266Commissions on license and taxes 51,186Court attendance 7,590Transportation of prisoners 3,002Bond fees 15,798Accident reports 17,468

Total program revenues 494,310Net Program Expenses (2,631,051)

General revenues:Taxes:

Ad valorem 565,348Sales 2,173,497

Grants and contributions not restricted to specific programs:Federal sources 15,743State sources 286,801Local 4,913

Interest earned 48,641Miscellaneous 5,524Special items:

Gain on sale of assets 20,067Insurance recovery 2,053

Change in Net Assets 491,536

NET ASSETSBeginning of year 1,825,230End of year $2.316.766


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Statement CUNION PARISH SHERIFF

Farmerville, LouisianaGOVERNMENTAL FUND

Balance Sheet, June 30, 2008

ASSETSCash and cash equivalents $1,776,394Receivables 254,134Due from other funds 803

TOTAL ASSETS $2,031,331

LIABILITIES AND FUND EQUITYLiabilities:

Accounts payable $30,140Salaries payable 91,188

Total Liabilities 121,328Fund equity fund balance -unreserved - undesignated 1,910,003

TOTAL LIABILITIESAND FUND EQUITY $2,03 U31


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Reconciliation of Governmental FundsBalance Sheet to the Statement of Net Assets

For the Year Ended June30, 2008

Total Fund Balances at June 30, 2008 - Governmental Funds (Statement C) $1,910,003

Cost of capital assets at June 30, 2008 $1,331,413Less: Accumulated depreciation as of June 30, 2008 (918,652) 412,761

Long-term liabilities at June 30, 2008 -Compensated absences payable 5,998 (5,998)

Net Assets at June 30,2008 (Statement A) S2.316,766


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Statement DUNION PARISH SHERIFF

Farmerville, LouisianaGOVERNMENTAL FUND TYPE - GENERAL FUND

Statement of Revenues, Expenditures, andChanges in Fund Balance

For the Year Ended June 30,2008

REVENUESTaxes:

Ad valoremSales

Intergovernmental revenues:Federal grantsState grants:

State supplemental payState revenue sharing (net)Other

Local grantsFees, charges, and commissions for services:

Civil and criminal feesCommissions on licenses and taxesCourt attendanceTransportation of prisonersBond feesAccident reports

Use of money and propertyOther

Total revenues

EXPENDITURESPublic safety:

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

Debt ServiceCapital outlayIntergovernmental

Total expenditures

$565,3482,173,497

15,743

136,737109,21840,8464,913

399,26651,1867,5903,002

15,79817,46848,641

5,5243,594,777

2,079,285505,971318,21947,47330,317

190,1075,922

3,177,294

(Continued)

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Statement DUNION PARISH SHERIFF

Farmerville, LouisianaGOVERNMENTAL FUND TYPE - GENERAL FUNDStatement of Revenues, Expenditures, and

Changes in Fund Balance

EXCESS OF REVENUESOVER EXPENDITURES $417,483

OTHER FINANCING SOURCES:Proceeds from disposal of assets 44,600Proceeds from insurance 2,053

Total Other Financing Sources 46,653

EXCESS OF REVENUES AND OTHERSOURCES OVER EXPENDITURES 464,136

FUND BALANCE AT BEGINNING OF YEAR 1,445,867

FUND BALANCE AT END OF YEAR $1,910.003

(Concluded)


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Reconciliation of Governmental FundsStatement of Revenue, Expenditures, and Changes

in Fund Balances to the Statement of Activities

For the Year Ended June 30, 2008

Total net change in fund balances - governmental funds (Statement D) $464,136

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

Capital outlays are reported in governmental funds as expenditures. However, in thestatement of Activities, the cost of those assets is allocated over their estimated usefullives as depreciation expense. This is the amount by which capital outlay exceedsdepreciation in the period: 20,142

Governmental funds do not report gain or loss on disposition of assets. In the Statement ofActivities, the difference in gain or loss on disposition of assets and sale of assets is reported. (24,533)

In the Statement of Activities, certain operating expenses - compensated absences are measuredby the amounts earned during the year. In the governmental funds, however, expenditures forthese items are measured by the amount of financial resources used (essentially., the amountsactually paid). 2,217

Interest on long-term debt in the Statement of Activities differs from the amount reported in thegovernmental funds because interest is recognized as an expenditure in the funds when it is due,and thus requires the use of current financial resources. In the Statement of Activities, however,interest expense is recognized as the interest accrues, regardless of when it is due. 1,040

Repayment of lease principal is an expenditure in the governmental funds, but the repaymentreduces long-term liabilities in the Statement of Net Assets 28,534

Change in net assets of governmental activities (Statement B) $491,536


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Statement £UNION PARISH SHERIFF

Farmerville, LouisianaStatement of Fiduciary Net Assets - Agency Funds

June 30, 2008

TAXCOLLECTOR CIVIL CRIMINAL

FUND FUND FUND TOTAL

ASSETSCash and equivalents $216,060 $33,644 $85,185 $334,889

LIABILITIESUnsettled deposits due to:

Accounts payableOther funds'Others

Total Liabilities $216,060 $33,644 $85,185 $334,889

$22,344436

193,280

$4092

33,512$275

84,910

$22,384803

311,702

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Notes to the Financial StatementsAs of and for the Year Ended June 30,2008

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

As provided by Article V, Section 27 of the Louisiana Constitution of 1974, the sheriff servesa four year term as the chief executive officer of the law enforcement district and ex-officio taxcollector of the parish. The sheriff also administers the parish jail system and exercises dutiesrequired by the parish court system, such as providing bailiffs, executing orders of the court,serving subpoenas, et cetera. As the ex-officio tax collector of the parish, the sheriff isresponsible for the collection and distribution of ad valorem property taxes, parish occupationallicenses, state revenue sharing funds, sportsmen licenses, and fines, costs, and bond forfeituresimposed by the district court.

The sheriff has the responsibility for enforcing state and local laws, ordinances, et cetera, withinthe territorial boundaries of the parish. The sheriff provides protection to the residents of theparish through on-site patrols, investigations, et cetera, and serves the residents of the parishthrough the establishment of neighborhood watch programs, anti-drug abuse programs, et cetera.Additionally, the sheriff, when requested, provides assistance to other law enforcement agencieswithin the parish.

The accompanying financial statements of the Union Parish Sheriff have been prepared inconformity with U.S. generally accepted accounting principles (GAAP) as applied togovernmental units. The Governmental Accounting Standards Board (GASB) is the acceptedstandard setting body for establishing governmental accounting and financial reportingprinciples. The accompanying basic financial statements have been prepared in conformity withGASB Statement 34, Basic Financial Statements-and Management's Discussion and Analysis-far State and Local Governments, issued in June 1999.

A. REPORTING ENTITY

As the governing authority of the parish, for reporting purposes, the Union Parish Police Juryis the financial reporting entity for Union Parish. The financial reporting entity consists of (a)the primary government (police jury), (b) organizations for which primary government isfinancially accountable, and (c) other organizations for which the nature and significance oftheir relationship with the primary government are such that exclusion would cause thereporting entity's financial statements to be misleading or incomplete.

Governmental Accounting Standards Board (GASB) Statement No. 14 established criteria fordetermining which component units should be considered part of the Union Parish Police Jury

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Notes to the Financial Statements (Continued)

for financial reporting purposes. The basic criterion for including a potential component unitwithin the reporting entity is financial responsibility. The GASB has set forth criteria to beconsidered in determining financial accountability. This criteria includes:

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

a. The ability of the police jury to impose its will on thatorganization and/or

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

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

3. Organizations for which the reporting entity financial statements would bemisleading if data of the organization is not included because of the nature orsignificance of the relationship.

Because the police jury maintains and operates the parish courthouse in which the sheriffsoffice is located and provides partial funding for equipment, furniture and supplies of thesheriffs office, the sheriff was determined to be a component unit of the Union Parish PoliceJury, the financial reporting entity. The accompanying financial statements presentinformation only on the funds maintained by the sheriff and do not present information on thepolice jury, the general government services provided by that governmental unit, or the othergovernmental units that comprise the Union Parish financial reporting entity.

B. BASIC FINANCIAL STATEMENTS - GOVERNMENT-WIDE STATEMENTS

The sheriffs basic financial statements include both government-wide (reporting the sheriffas a whole) and fund financial statements (reporting the sheriffs major fund). Bothgovernment-wide and fund financial statements categorize primary activities as eithergovernmental or business type. All activities of the sheriff are classified as governmental.

The Statement of Net Assets (Statement A) and the Statement of Activities (Statement B)display information about the reporting government as a whole. These statements include allthe financial activities of the sheriff, except for fiduciary funds. Fiduciary funds are reportedonly in the Statement of Fiduciary Net Assets at the fund financial statement level.

In the Statement of Net Assets, governmental activities are presented on a consolidated basisand are presented on a full accrual, economic resource basis, which recognizes all long-term

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assets and receivables as well as long-term obligations. Net assets are reported in three parts;invested in capital assets, net of any related debt; restricted net assets; and unrestricted netassets.

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

Program Revenues - Program revenues included in the Statement of Activities (Statement B)are derived directly from parties outside the sheriffs taxpayers or citizenry. Program revenuesreduce the cost of the function to be financed from the sheriffs general revenues.

Allocation of Indirect Expenses - The sheriff reports all direct expenses by function in theStatement of Activities (Statement B). Direct expenses are those that are clearly identifiable witha function. Indirect expenses of other functions are not allocated to those functions but arereported separately in the Statement of Activities. Depreciation expense, which can bespecifically identified by function, is included in the direct expenses of each function. Intereston general long-term debt is considered an indirect expense and is reported separately on theStatement of Activities.

C. BASIC FINANCIAL STATEMENTS - FUND FINANCIAL STATEMENTS

The financial transactions of the sheriff are reported in individual funds in the fund financialstatements. Fund accounting is designed to demonstrate legal compliance and to aid financialmanagement by segregating transactions related to certain government functions or activities.

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

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

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governmental and fiduciary funds. The governmental and fiduciary fund types used by thesheriff are described as follows:

Governmental Fund Type

General Fund - The General Fund, as provided by Louisiana Revised Statute 13:781, is theprincipal fund of the sheriff and is used to account for the operations of the sheriffs office. Thevarious fees and charges due to the sheriffs office are accounted for in this fund. Generaloperating expenditures are paid from this fund.

Fiduciary Fund Type - Agency Funds

The agency funds are used as depositories for civil suits, cash bonds, taxes, fees, et cetera.Disbursements from the funds are made to various parish agencies, litigants in suits, et cetera,in the manner prescribed by law. Agency funds are custodial in nature (assets equal liabilities)and do not involve measurement of results of operations.

D. BASIS OF ACCOUNTING

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

1. Accrual:

Both governmental and business type activities in the government-wide financialstatements are presented on the accrual basis of accounting. Revenues are recognizedwhen earned and expenses are recognized when incurred.

2. Modified Accrual:

The governmental funds financial statements are presented on the modified accrual basisof accounting. With this measurement focus, only current assets and current liabilities aregenerally included on the balance sheet. The statement of revenues, expenditures, andchanges in fund balances reports on the sources (i.e., revenues and other financing sources)and uses (i.e., expenditures and other financing uses) of current financial resources. Thisapproach differs from the manner in which the governmental activities of the government-wide financial statements are prepared. Governmental fund financial statements thereforeinclude a reconciliation with brief explanations to better identify the relationship betweenthe government-wide statements and the statements for governmental funds.

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Governmental funds and the fiduciary type agency funds use the modified accrual basis ofaccounting. Under the modified accrual basis of accounting, revenues are recognized whensusceptible to accrual (i.e., when they become both measurable and available). Measurablemeans the amount of the transaction can be determined and available means collectible withinthe current period or soon enough thereafter to pay liabilities of the current period. The sheriffconsiders all revenues available if they are collected within 60 days after the fiscal year end.Expenditures are recorded when the related fund liability is incurred, except for interest andprincipal payments on general long-term debt which is recognized when due, and certaincompensated absences and claims and judgments which are recognized when the obligations areexpected to be liquidated with expendable available financial resources. The governmental fundsuse the following practices in recording revenues and expenditures:

Revenues

Ad valorem taxes and the related state revenue sharing are recorded in the year thetaxes are due and payable. Ad valorem taxes are assessed on a calendar year basisand attach as an enforceable lien and become due and payable on the date the taxrolls are filed with the recorder of mortgages. Louisiana Revised Statute 47:1993requires that the tax roll be filed on or before November 15 of each year. Ad valoremtaxes become delinquent if not paid by December 31. The taxes are normallycollected in December, January, and February of the fiscal year.

Interest income on time deposits is recorded when the time deposits have maturedand the income is available.

Substantially all other revenues are recognized when received by the sheriff.

Based on the above criteria, intergovernmental revenue and fees, charges, andcommissions for services are treated as susceptible to accrual.

Expenditures

Expenditures are generally recognized under the modified accrual basis ofaccounting when the related fund liability is incurred.

E. CASH AND CASH EQUIVALENTS

Under state law, the sheriff may deposit funds in demand deposits, interest bearing demanddeposits, money market accounts, or time deposits with state banks organized under Louisianalaw and national banks having principal offices in Louisiana. At June 30,2008, the sheriff hascash and equivalents (book balances) totaling $2,111,283 follows:

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Demand deposits $2,008,301Time deposits 102,782Petty cash 200

Total $2,111,283

These deposits are stated at cost, which approximates market. Under state law, these deposits,or the resulting bank balances, must be secured by federal deposit insurance or the pledge ofsecurities owned by the fiscal agent bank. The market value of the pledged securities plus thefederal deposit insurance must at all times equal the amount on deposit with the fiscal agentbank. These securities are held in the name of the pledging fiscal agent bank in a holding orcustodial bank that is mutually acceptable to both parties. Cash and cash equivalents (bankbalances) at June 30, 2008, are secured as follows:

Bank balances $2,416,723

Federal deposit insurance $200,000Pledged securities (uncollateralized) 3,953,171

Total $4,153,171

Because the pledged securities are held by a custodial bank in the name of the fiscal agent bankrather than in the name of the sheriff, they are considered uncollateralized (Category 3) under theprovisions of GASB Codification C20.106; however, Louisiana Revised Statute 39:1229imposes a statutory requirement on the custodial bank to advertise and sell the pledged securitieswithin 10 days of being notified by the sheriff that the fiscal agent has failed to pay depositedfunds upon demand. Further, LRS 39:1224 states that securities held by a third party shall bedeemed to be held in the sheriffs name.

F. SALES TAX

The voters of the parish approved the continuance of a 1/2 of one percent sales and use tax andto levy an additional 1A of one percent sales and use tax for ten (10) years, beginning April 1,2002. The proceeds of the sales tax are dedicated for the purpose of providing additionalfunding for the law enforcement district. The sheriffs office has entered into an agreementwith the Union Parish School Board for collection of the tax. For its services, the school boardreceives one per cent (1%) of gross collections, not to exceed $12,000 for a calendar year.

G. CAPITAL ASSETS

Capital assets are capitalized at historical cost or estimated cost if historical cost is not availableDonated assets are recorded as capital assets at their estimated fair market value at the date ofdonation. The sheriff maintains a threshold level of $500 or more for capitalizing capital assets.

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Capital assets are recorded in the GWFS, but are not reported in the FFS. Since surplus assetsare sold for an immaterial amount when declared as no longer needed for public purposes by thesheriff, no salvage value is taken into consideration for depreciation purposes. All capital assets,other than land, are depreciated using the straight-line method over the following useful lives:

EstimatedDescription Lives

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

H. VACATION AND SICK LEAVE

All employees are granted from one to two weeks of vacation leave each year, dependingon length of service. Vacation leave must be taken in the year granted and may not beaccumulated and carried forward to succeeding years. Sick leave is earned at a rate ofeight hours per month, and may not be accumulated and carried forward to succeedingyears.

I. RISK MANAGEMENT

The sheriff is exposed to various risk of loss related to torts; theft of, damage to, anddestruction of assets and errors and omissions. To handle such risk of loss, the sheriffmaintains commercial insurance policies covering his automobiles and surety bond coverage.No claims were paid on any of the policies during the past three years which exceeded thepolicies' coverage amounts. There were no significant reductions in insurance coverageduring the year ended June 30, 2008.

2. RECEIVABLES

The General Fund receivables of $254,134 at June 30, 2008, are as follows:

Class of receivablesTaxes-Sales Tax $197,047Taxes-Ad valorem Tax 4,633State grants 12,932Transporting prisoners 813Court attendance 7,548Civil fees 26,673Other 4,488

Total $254,134

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3. CHANGES IN CAPITAL ASSETS

A summary of changes in office furnishings, vehicles, and equipment follows:

Adjusted balance at June 30, 2007 $1,302,000Additions 190,107Deletions (160,694)

Balance at June 30, 2008 1,331,413Less accumulated depreciation (918,652)

Net Capital Assets $412,761

4. PENSION PLAN

Substantially all employees of the Union Parish Sheriffs office are members of the Louisiana SheriffsPension and Relief Fund (System), a cost-sharing, multiple-employer defined benefit pension planadministered by a separate board of trustees. All sheriffs and all deputies who are 18 years or older at thetime of original employment, who earn not less than $400 per month if employed after September 7,1979and before January 1,1991; $550 if employed between January 1,1991 and December 31,1999; and $800if employed after January 1,2000 are required to participate in the System. Employees are eligible to retireat or after age 55 with at least 12 years of credited service and receive a benefit, payable monthly for life,equal to 3-33 percent of their final-average salary for each year of credited service. The retirement benefitcannot exceed 100 per cent of their final-average salary. Final-average salary is the employee's averagesalary over the 36 consecutive or joined months that produce the highest average. Employees who terminatewith at least 12 years of service and do not withdraw their employee contributions may retire at or after age55 and receive the benefit accrued to their date of termination as indicated previously. Employees whoterminate with at least 20 years of credited service are also eligible to elect early benefits between ages 50and 55 with reduced benefits equal to the actuarial equivalent of the benefit to which they would otherwisebe entitled at age 55. The System also provides death and disability benefits. Benefits are established oramended by state statute.

The System issues an annual publicly available financial report that includes financial statements andrequired supplementary information for the System. That report may be obtained by writing to the LouisianaSheriffs Pension and Relief Fund, 6554 Florida Blvd., Suite 215, Baton Rouge, Louisiana 70806, or bycalling (800) 586-9049.

Plan members are required by state statute to contribute 10 percent of their annual covered salary and theUnion Parish Sheriff is required to contribute at an actuarially determined rate. The current rate is 11 percentof annual covered payroll. Contributions to the System also include one-half of one percent of the taxesshown to be collectible by the tax rolls of each parish and funds as required and available from insurancepremium taxes. The contribution requirements of plan members and the Union Parish Sheriff are establishedand may be amended by state statute. As provided by Louisiana Revised Statue 11:103, the employer

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contributions are determined by actuarial valuation and are subject to change each year based on the resultsof the valuation for the prior fiscal year. The Union Parish Sheriff s contributions to the System for the yearsended June 30, 2008, 2007, and 2006 were $170,242, $142,882, and $143,323, respectively, equal to therequired contributions for each year.

5. POST RETIREMENT BENEFITS

The Union Parish Sheriff provides certain health care and life insurance benefits for retired employees.Substantially all of the sheriffs employees become eligible for these benefits if they reach normal retirementage while working for the sheriff. These benefits for retirees and similar benefits for active employees areprovided through an insurance company whose monthly premiums are paid jointly by the employee and thesheriff. The sheriff recognizes the cost of providing these benefits (the sheriffs cost of premiums) as anexpenditure when the monthly premiums are due, which was $293,260 for the year ended June 30, 2008.Of this amount, $9,440 was for retiree benefits.

6. DUE FROM/TO OTHER FUNDS

Individual balances due from/to other funds at June 30, 2008, are as follows:

Due From Due To

General Fund $803Agency Funds:

Civil Fund $92Criminal Fund 275Tax Collector Fund 436

Total $803 S803

7. CHANGES IN AGENCY FUND BALANCES

A summary of changes in agency fund balances due to taxing bodies and others follows:

Balance, July 1,2007AdditionsDeletions

Balance, June 30,2008

TaxCollector

Fund$420,5876,765,767

(6,993,074)

$193,280

CivilFund

$34,2361,549,575

(1,550,299)

$33,512

CriminalFund

$56,078651,394

(622,562)

$84,910

Total$510,901

8,966,736(9,165,935)

$311.702

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8. CHANGES IN GENERAL LONG-TERMOBLIGATIONS

The following is a summary of long-term obligation transactions for the year ended June 30, 2008:

Compensated CapitalAbsences Leases Total

Long-term obligations at July 1,2007 $8,215 $28,534 $36,749Additions 8,825 8,825Deductions (11,042) (28,534) (39,576)

Long-term obligations at June 30,2008 $5,998 NONE $5,998

The capital lease paid off during the current audit period.

9. LITIGATION AND CLAIMS

The Union Parish Sheriffis not involved in any litigation at June 30,2008, nor is he aware of any unassortedclaims.

10.

The Union Parish Sheriffs office is located in the parish courthouse. The cost of maintaining and operatingthe courthouse, as required by Louisiana Revised Statute 33:4715, is paid by the Union Parish Police Jury.

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REQUIRED SUPPLEMENTARY INFORMATION

PART II

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BUDGETARY COMPARISON SCHEDULEGENERAL FUND


Schedule 1

REVENUESTaxes:

Ad valoremSales

Intergovernmental revenues:Federal grants - federal revenueState grants:

State supplemental payState revenue sharing (net)Other state grants

Local grantFees, charges, and commissions

for services:Civil and criminal feesCommissions on licenses and taxesCourt attendanceTransportation of prisonersBond feesAccident reports

Use of money and propertyOther revenue

Total revenues

EXPENDITURESPublic safety:

Current:Personal services and benefitsOperating servicesMaterials and suppliesTravel and other charges

Debt serviceCapital outlayIntergovernmental

Total expenditures

EXCESS OF REVENUESOVER EXPENDITURES

ORIGINALBUDGET

$450,0001,900,000

10,000

83,00098,00020,500

293,00012,0002,5003,00025,0006,00015,00014,700

2,932,700

1,875,581533,950241,00037,708111,00075,000

2,874,239

58,461

FINALBUDGET

$550,0002,025,000

16,719

120,000109,00017,575

316,00013,0002,5002,20023,00017,50040,0008,100

3,260,594

2,055,581505,000331,00058,00036,000180,000

3,165,581

95,013

ACTUAL{BUDGETARY

BASIS)

$565,3482,173,497

15,743

136,737109,21840,8464,913

399,26651,1867,5903,00215,79817,46848,6415,524

3,594,777

2,079,285505,971318,21947,47330,317190,1075,922

3,177,294

417,483

VARIANCEFAVORABLE

(UNFAVORABLE)

$15,348148,497

(976)

16,737218

23,2714,913

83,26638,1865,090802

(7,202)(32)

8,641(2,576)

334,183

(23,704)(971)

12,78110,5275,683

(10,107)(5,922)(11,713)

322,470

(Continued)

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BUDGETARY COMPARISON SCHEDULEGENERAL FUND

Schedule 1

OTHER FINANCINGSOURCES

Proceeds from disposal of assetsProceeds from insurance

Total financing sources

EXCESS OF REVENUES AND OTHERSOURCES OVER EXPENDITURES

FUND BALANCES ATBEGINNING OF YEAR

FUND BALANCES ATEND OF YEAR

ORIGINALBUDGET

$7,000

7,000

65,461

FINALBUDGET

$2,050

2,050

ACTUAL VARIANCE(BUDGETARY FAVORABLE

BASIS) (UNFAVORABLE)

$44,6002,05346,653

97,063 464,136

900,000 1,445,867 1,445,867

$965,461 $1,542.930 $1.910.003

$44,6003

44,603

367,073

NONE

$367,073

(Concluded)

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NOTE TO BUDGETARY COMPARISON SCHEDULEFor the Year Ended June 30, 2008

A proposed budget, prepared on the modified accrual basis of accounting, is published in the officialjournal at least ten days prior to the public hearing. A public hearing is held at the Union Parish Sheriffsoffice during the month of June for comments from taxpayers. The budget is then legally adopted by thesheriff and amended during the year, as necessary. The budget is established and controlled by the sheriffat the object level of expenditure. Appropriations lapse at year-end and must be reappropriated for thefollowing year to be expended.

Formal budgetary integration is employed as a management control device during the year. Budgetedamounts included in the accompanying budgetary comparison schedule include the original adoptedbudget amounts and all subsequent amendments.

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OTHER SUPPLEMENTARY INFORMATION

PART III

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SUPPLEMENTAL INFORMATION SCHEDULESAs of and For the Year June 30, 2008

FIDUCIARY FUND TYPE - AGENCY FUNDS

TAX COLLECTOR FUND

Article V, Section 27 of the Louisiana Constitution of 1974, provides that the sheriff will serve as thecollector of state and parish taxes and fees. The Tax Collector Fund is used to collect and distribute thesetaxes and fees to the appropriate taxing bodies.

CIVIL FUND

The Civil Fund accounts for funds held in civil suits, sheriffs sales, and garnishments and payment torecipients in accordance with applicable laws.

CRIMINAL FUND

The Criminal Fund accounts for the collection of bonds, fines, and court costs in criminal matters andpayment to recipients in accordance with applicable laws.

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FIDUCIARY FUND TYPE - AGENCY FUNDS

Schedule of Changes in Unsettled BalancesDue to Taxing Bodies and Others


Schedule 2

UNSETTLED BALANCES DUETO TAXING BODIES ANDOTHERS, JUNE 30,2007

ADDITIONSDeposits:

Sheriffs salesFines and costsGarnishments

Other additionsTaxes, fees, etc.,

Total additionsTotal

REDUCTIONSDeposits settled to:

Louisiana Forestry CommissionLouisiana Tax Commission

Union Parish:Sheriffs General FundPolice JurySchool BoardAssessorClerk of CourtEast Union HospitalTri-Ward HospitalWard Five Fire DistrictSpencer-West Sterlington Fire DistrictDistrict 7 Fire DistrictDistrict 1 Fire DistrictNortheast Union Fire DistrictNorth Union Fire DistrictBernice Fire DistrictMunicipalities

Pension fundsCMISDistrict attorneyIndigent defender board

(Continued)

TAXCOLLECTOR CIVIL CRIMINAL

FUND FUND FUND

$420,587 $34,236 $56,078

1,378,417651,394

136,91934,239

6,765,7676,765,767 1,549,575 651,3947,186,354 1,583,811 707,472

29,1592,482

734,265 244,873 195,8762,109,966 25,0972,233,311485,1195,684 59,537 26,567

407,731215,077120,04620,17339,318180,87387,43525,92755,7211,061 14,347

174,0002,37060,78164,841

TOTAL

$510,901

1,378,417651,394136,91934,239

6,765,7678,966,7369,477,637

29,1592,482

1,175,0142,135,0632,233,311485,11991,788407,731215,077120,04620,17339,318180,87387,43525,92755,72115,408174,0002,37060,78164,841

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FIDUCIARY FUND TYPE - AGENCY FUNDSSchedule of Changes in Unsettled Balances

Due to Taxing Bodies and Others, 2008

Schedule 2

TAXCOLLECTOR

FUNDCIVILFUND CRIMINAL

REDUCTIONS: (CONTD.)Deposits settled to: (Contd.)

LA Rehabilitation ServiceCriminal court fundJudicial district courtLitigantsNorth Louisiana Crime LabLouisiana Commission on Law EnforcementRedemptions

Other reductionsTotal reductions

UNSETTLED BALANCES DUETO TAXING BODIES ANDOTHERS, JUNE 30, 2008

TOTAL

$49,16416,562

6,993,074

$207,846

1,038,0431,550,299

$3,665132,79946,732

19,43313,203

16,851622,562

$3,665132,79946,732207,84619,43313,20349,164

1,071,4569,165,935

$193,280 $33.512 .910 $311,702

(Concluded)

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REPORTS REQUIRED BYGOVERNMENT AUDITING STANDARDS

PART IV

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Independent Auditor's Report Requiredby Government Auditing Standards

The following independent auditor's report on compliance with laws, regulations and contracts, and internalcontrol over financial reporting are presented in compliance with the requirements of Government AuditingStandards, issued by the Comptroller General of the United States and the Louisiana Governmental AuditGuide, issued by the Society of Louisiana Certified Public Accountants and the Louisiana LegislativeAuditor.

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

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

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

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


I have audited the basic financial statements of the Union Parish Sheriff, a component unit of the UnionParish Police Jury, as of and for the year ended June 30, 2008 and have issued my report thereon datedNovember 10,2008. I conducted my audit in accordance with U.S. generally accepted auditing standardsand the standards applicable to financial audits contained in Government Auditing Standards, issued bythe Comptroller General of the United States.

Internal Control Over Financial ReportingIn planning and performing my audit, I considered Union Parish Sheriffs internal control over financialreporting as a basis for designing my auditing procedures for the purpose of expressing my opinion onthe basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of theUnion Parish Sheriffs internal control over financial reporting. Accordingly, I do not express an opinionon the effectiveness of the Union Parish Sheriffs internal control over financial reporting.

A control deficiency exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent or detect misstatementson a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies,that adversely affects the entity's ability to initiate, authorize, record, process, or report financial datareliably in accordance with generally accepted accounting principles such that there is more than a remotelikelihood that a misstatement of the Union Parish Sheriffs financial statements that is more thaninconsequential will not be prevented or detected by the Union Parish Sheriffs internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results inmore than a remote likelihood that a material misstatement of the financial statements will not beprevented or detected by the Union Parish Sheriffs internal control.

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Practice Limited to Governmental Accounting, Auditing and Financial Reporting


Independent Auditor's Report on ComplianceAnd Internal Control Over Financial Reporting, etc.June 30, 2008

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

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Union Parish Sheriffs basic financialstatements are free of material misstatement, I performed tests of its compliance with certain provisionsof laws, regulations, contracts and grants, noncompliance with which could have a direct and materialeffect on the determination of financial amounts. However, providing an opinion on compliance withthose provisions was not an objective of my audit and, accordingly, I do not express such an opinion.The results of my tests disclosed no instances of noncompliance or other matters that is required to bereported under Government Auditing Standards.

This report is intended solely for the information and use of the Union parish sheriff, management, andthe Legislative Auditor and is not intended to be and should not be used by anyone other than thesespecified parties. Although the intended use of these reports may be limited, under Louisiana RevisedStatute 24:513, this report is distributed by the Legislative Auditor as a public document.

West Monroe, LouisianaNovember 10, 2008

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Schedule 3UNION PARISH SHERIFF

Farmerville, Louisiana

Schedule of Audit FindingsFor the Year Ended June 30, 2008

A. SUMMARY OF AUDIT RESULTS

1. The auditor's report expresses an unqualified opinion on the general purpose financialstatements of the Union Parish Sheriff.

2. No instances of noncompliance material to the financial statements of the Union ParishSheriff were disclosed during the audit.

3. No significant deficiencies relating to the audit of the financial statements are reported in theIndependent Auditors' Report on Internal Control.

B. FINDINGS - FINANCIAL STATEMENTS AUDIT

None

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Schedule 4UNION PARISH SHERIFF

Farmerville, Louisiana

Summary Schedule of Prior Audit FindingsFor the Year Ended June 30, 2008

There were no audit findings reported in the audit for the year ended June 30, 2007.

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MARY JO FINLEY, CPA, INC. - app1.lla.la.gov fileUNION PARISH SHERIFF Farmerville, Louisiana Annual...

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