OS Ml 28 AMM 35 - Louisiana · 2020. 11. 13. · OS Ml 28 AMM:35 TERREBONNE PARISH ASSESSOR Houma,...

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TERREBONNE PARISH ASSESSORHouma, Louisiana

Basic Financial Statementsand Independent Auditor's ReportsAs of and for the Year Ended

December 31, 2004

Under provisions of state law, this report is a publicdocument. Acopy 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

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C O N T E N T S

PageNo.

Independent Auditor's Report 1

Management's Discussion and Analysis 4

Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Assets 9Statement of Activities 10

Fund Financial Statements (Governmental Funds):

Balance Sheet 12Reconciliation of the Governmental Fund BalanceSheet to the Government-Wide Statement ofNet Assets 13

Statement of Revenues, Expendituresand Changes in Fund Balance 14

Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balance tothe Statement of Activities 15

Notes to the Financial Statements 17

Required Supplementary Information (RSI):

Budgetary Comparison Schedule - General Fund 30

Supplementary Information Schedules:

Summary Schedule of Prior Year Audit Findingsand Corrective Action Plan for Current YearAudit Findings 32

Other Report Required byGovernment Auditing Standards:

Report on Compliance and Internal Controlover Financial Reporting Based on an Auditof Financial Statements Performed inAccordance with Government Auditing Standards 37

KEITH J. ROVIRA A

CERTIFIED PUBLIC ACCOUNTANT

333 I METAIRIE ROAD

METAIRIE. LOUISIANA 7OOOI-5297

(5O4> 831-4O4O FAX

In accordance with Government Auditing Standards. I have also issueda report dated June 16, 2005, on my consideration of the TerrebonneParish Assessor's internal control over financial reporting and raytests of its compliance with certain provisions of laws, regulationsand contracts. That report is an integral part of an auditperformed in accordance with Government Auditing Standards andshould be read in conjunction with this report in considering theresults of my audit.

Management's Discussion and Analysis, as listed in the table ofcontents, is not a required part of the basic financial statements,but is supplementary information required by the GovernmentalAccounting Standards Board. Such information has been subjected tothe auditing procedures applied in the audit of the basic financialstatements and, in my opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as awhole.

My audit was performed for the purpose of expressing an opinion onthe basic financial statements taken as a whole. All otheraccompanying financial information listed as supplementaryinformation in the table of contents is presented for purposes ofadditional analysis and is not a required part of the basicfinancial statements of the Terrebonne Parish Assessor. Suchinformation has been subjected to the auditing procedures applied inthe audit of the basic financial statements and, in my opinion, isfairly stated in all material respects in relation to the basicfinancial statements taken as a whole.

Keith J. RoviraCertified Public Accountant

June 16, 2005

MANAGEMENT'S DISCUSSION AND ANALYSIS


Management's Discussion and AnalysisAs of and for the Year Ended December 31, 2004

The Management's Discussion and Analysis (MD&A) of the TerrebonneParish Assessor's financial performance presents a narrativeoverview and analysis of the assessor's financial activities for theyear ended December 31, 2004. This document focuses on the currentyear's activities, resulting changes, and currently known facts.Please read this document in conjunction with the additionalinformation contained in the basic financial statements.

The MD&A is an element of the new reporting model adopted by theGovernment Accounting Standards Board (GASB) in their Statement No.34, "Basic Financial Statements - and Management's Discussion andAnalysis - for State and Local Governments" issued June, 1999.Comparative information between the current year and prior year isbeing presented in this MD&A.

FINANCIAL HIGHLIGHTS

The minimum requirements for financial reporting on the TerrebonneParish Assessor's office that was established by GASB No. 34 aredivided into the following sections:

(a) Management's Discussion and Analysis(b) Basic Financial Statements(c) Required Supplementary Information (other than MD&A)

Basic Financial Statements:

The basic financial statements present information for the assessoras a whole, in a format designed to make the statements easier forthe reader to understand. The financial statements in this sectionare divided into the two following types:

(1) Government-Wide Financial Statements, which include a Statementof Net Assets and a Statement of Activities. These statementspresent financial information for all activities of the assessorfrom an economic resources measurement focus using the accrual basisof accounting and providing both short-term and long-terminformation about the assessor's overall financial status.

(2) Fund Financial Statements, which include a Balance Sheet and a

TERREBONNE PARISH ASSESSORHouma, Louis iana


Statement of Revenues, Expenses, and Changes in Fund Balance for theGeneral Fund (a governmental fund). These financial statementspresent information on the individual fund of the assessor allowingfor more detail. The current financial resources measurement focusand the accrual basis of accounting used to prepare these statementsis dependent on the fund type. The assessor's only governmentalfund is the General Fund. The statements in this section representthe short-term financing of general government.

FINANCIAL ANALYSIS OF THE ENTITY

Statement of Net AssetsAs of December 31, 2004 and 2003

2004 2003

Current and other assets $1,131,484 $939,959Capital assets 10.163 5.020

Total Assets 1.141.647 944.979

Current liabilities 13.312 -

Total Liabilities 13.312 -

Net Assets:Invested in capital assets, netof debt 10,163 5,020Unrestricted 1.118.172 939.959

Total Net Assets $1.128,335 $944.979

The assessor does not have any "restricted" net assets. It doeshave "unrestricted" net assets, and those are net assets that do nothave any limitations on what these amounts may be used for.

Net assets of the assessor increased by $183,356 or 19.4%; from 2003to 2004. One of the main causes for this is the increase in advalorem tax revenue.



Statement of Revenues, Expenditures andChanges in Fund Balance

For the year ended December 31, 2004 and 2003

2004 2003

Revenues $1,143,676 $1,107,171Expenditures 965.463 1.076.972

Net Change in Fund Balance $178,213 $30,199

The assessor's total revenues increased by $36,505, or 3.3%, and thetotal cost of all programs and services decreased by $111,509, or10.4%. This was principally due to the decrease in expendituresrelated to the Geographical Information System.

CAPITAL ASSET AND DEBT ADMINISTRATION

At December 31, 2004, the assessor had $176,795 invested in capitalassets, including office furniture, office equipment andautomobiles. This amount represents the total original cost of thecapital assets (before deducting accumulated depreciation), andreflects a net increase (including additions and deductions) of$3,496 over last year's total. The table below lists capital assetsby type, net of accumulated depreciation:

Capital AssetsAs of December 31, 2004 and 2003

2004 2003

Office furniture and equipment, netof accumulated depreciation 510.163

Total $10,163

TKRREBONNE PARISH ASSESSORHouma, Louisiana


Debt:The assessor had no debt outstanding at year end.

VARIATIONS BETWEEN ORIGINAL AND FINAL BUDGETS

Actual total revenues were $214,676 more than budgeted totalrevenues. Actual total expenditures were $44,537 less than budgetedtotal expenditures.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET

The assessor considered the following factors and indicators whensetting up the 2004 budget. These factors and indicators include:(1) costs associated with the design, development and implementationof the Geographical Information System (CIS) mapping project for theparish; (2) ad valorem tax revenue,- (3) additional salaries andrelated costs due to an increase in health care and retirementcontributions; (4) other operating costs of the office in theprocess of providing services to the public. The assessor expectsthat next year's revenues will be sufficient to cover expenses.

CONTACTING THE ASSESSOR

This financial report is designed to provide the citizens,taxpayers, customers, investors and creditors with a generaloverview of the assessor's finances, and to show the assessor'saccountability for the money it receives. If you have any questionsabout this report or need additional financial information, pleasecontact Mr. Gene P. Bonvillain, Terrebonne Parish Assessor atP. 0. Box 5094 in Houma, Louisiana, 70361-5094, or call the officeat 985-876-6620.

BASIC FINANCIAL STATEMENTS

(GOVERNMENT-WIDE FINANCIAL STATEMENTS)


Statement of Net AssetsAs of December 31, 2004

ASSETSCurrent Assets:Cash (Note C)Revenue receivables:Ad valorem taxes (Note A)State revenue sharingIntergovernmental - Reimbursements duefrom Terrebonne Parish ConsolidatedGovernment for the GeographicalInformation System

Total Current Assets

Noncurrent Assets:Capital assets (net of depreciation)

(Note D)

Total Noncurrent Assets

TOTAL ASSETS

83,261

890,36648,040

109.817

1.131.484

10.163

10.163

1.141.647

LIABILITIESCurrent Liabilities:Accounts payable

Total Current Liabilities

TOTAL LIABILITIES

13.312

13.312

13.312

NET ASSETSInvested in capital assetsUnrestricted

TOTAL NET ASSETS

10,1631.118.172

$1,128,335

The accompanying notes are an integral part of this statement.

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TERREBONNE PARISH ASSESSORHouma, Loui s iana

Statement of ActivitiesFor the Year Ended December 31, 2004

EXPENSESGovernmental Activities:General government $ 814,072Intergovernmental expenses -Geographical Information System 151,391Depreciation expense 4.052

Total Expenses 969.515

GENERAL REVENUESAd valorem taxes 895,876Intergovernmental - Reimbursementsfrom Terrebonne Parish ConsolidatedGovernment for the GeographicalInformation System 151,391State revenue sharing 48,041Interest revenue 2,319Other 55.244

Total General Revenue 1.152.871

Change in Net Assets 183,356

Net Assets at Beginning of Year 944.979

Net Assets at End of Year $1.128,335


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BASIC FINANCIAL STATEMENTS

(FOND FINANCIAL STATEMENTS)

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TERREBONNE PARISH ASSESSORHouma, Loui s ianaBalance Sheet

General Fund - Governmental FundDecember 31, 2004

ASSETSCash $ 83,261Revenue receivables:Ad valorem taxes 890,366State revenue sharing 48,040Intergovernmental - Reimbursements duefrom Terrebonne Parish ConsolidatedGovernment for the GeographicalInformation System 109.817

TOTAL ASSETS $1.131.484

LIABILITIES AND FOND BALANCELiabilities:Accounts payable $ 13.312

Total Liabilities 13,312

Fund balance - unreserved and undesignated 1.118.172

TOTAL LIABILITIES AND FUND BALANCE $1,131.484


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TERREBONNE PARISH ASSESSORHouma, Lou i s i ana

Reconciliation of the Governmental Fund Balance Sheetto the Statement of Net Assets

December 31, 2004

Total Fund Balance - Governmental Fund $1,118,172

Amounts reported for governmental activitiesin the Statement of Net Assets are differentbecause:

.Capital assets used in governmentalactivities are not current financialresources and, therefore, are notreported in the Governmental FundsBalance Sheet. 10.163

Total Net Assets of Governmental Activities $1,128.335


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Statement of Revenues, Expendituresand Changes in Fund Balance

General Fund - Governmental FundFor the Year Ended December 31, 2004

REVENUESAd valorem taxes $ 895,876Intergovernmental - Reimbursementsfrom Terrebonne Parish ConsolidatedGovernment for the GeographicalInformation System 151,391

State revenue sharing 48,041Interest revenue 2,319Other 46.049

Total Revenues 1.143.676

EXPENDITURESSalaries and related expenditures 653,482Intergovernmental expenditures - GeographicalInformation System 151,391

Operating services and maintenance 72,662Office materials and supplies 14,830Travel and other charges 1,911Capital outlay 9,751Professional services 61.436

Total Expenditures 965.463

Excess of Revenues over Expenditures 178,213

Fund Balance at Beginning of Year 939.959

Fund Balance at End of Year $1,118.172

The accompanying notes are an integral part of this statement

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TKRREBONNE PARISH ASSESSORHouma, Louisiana

Reconciliation of the Statement of Revenues, Expendituresand Changes in Fund Balance of the Governmental Fund

to the Statement of ActivitiesFor the Year Ended December 31, 2004

Net Change in Fund Balance - Governmental Funds $178,213

Amounts reported for governmental activitiesin the Statement of Activities are differentbecause:

Governmental funds report capital outlays asexpenditures. However, in the Statement ofActivities, the cost of those assets isallocated over their estimated useful livesas depreciation expense. 5.143

Change in Net Assets of Governmental Activities $183.356


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NOTES TO THE FINANCIAL STATEMENTS

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Notes to the Financial StatementsDecember 31, 2004

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

IntroductionAs provided by Article VII, Section 24 of the LouisianaConstitution of 1974, the assessor is elected by the votersof the parish and serves a four year term. The assessorassesses all real and movable property in the parish, subjectto ad valorem taxation. The assessor is authorized toappoint as many deputies as may be necessary for theefficient operation of the office and provide assistance tothe taxpayers of the parish. The deputies are authorized toperform all functions of the office, but the assessor isofficially and pecuniarily responsible for the actions of thedeputies.

The assessor's office is located in the Terrebonne ParishCourthouse in Houma, Louisiana. In accordance with Louisianalaw, the assessor bases real and movable property assessmentson conditions existing on January 1 of the tax year. Theassessor completes an assessment listing during the tax yearand submits the list to the parish governing authority andthe Louisiana Tax Commission, as prescribed by law. Once theassessment listing is approved, the assessor submits theassessment roll to the parish tax collector, who isresponsible for the collection and distribution of taxes tothe various taxing bodies.

1. Basis of AccountingIn April of 1984, the Financial Accounting Foundationestablished the Governmental Accounting Standards Board(GASB) to promulgate generally accepted accountingprinciples and reporting standards with respect toactivities and transactions of state and localgovernmental entities. The GASB has issued aCodification of Governmental Accounting and FinancialReporting Standards (GASB Codification). Thecodification and subsequent GASB pronouncements arerecognized as generally accepted accounting principlesfor state and local governments. The accompanyingfinancial statements have been prepared in accordancewith such principles.

In addition, the Terrebonne Parish Assessor adopted theprovisions of Governmental Accounting Standards BoardStatement No. 34, Basic Financial Statements - andManagement's Discussion and Analysis - for State andLocal Governments for the first time this year. The

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TERREBONNK PARISH ASSESSORHouma, Louisiana


NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

assessor will be treated as a governmental-type activityfor financial reporting purposes in this audit. Theminimum requirements for the Terrebonne ParishAssessor's office established by GASB Statement No. 34are divided into the following sections:(a) Management's Discussion and Analysis, (b) BasicFinancial Statements, and (c) Required SupplementaryInformation (other than MD&A).

The accompanying financial statements of the TerrebonneParish Assessor present information only as to thetransactions of the programs of the assessor asauthorized by Louisiana statutes and administrativeregulations. Basis of accounting refers to whenrevenues and expenses are recognized and reported in thefinancial statements. Basis of accounting relates tothe timing of the measurements made, regardless of themeasurement focus applied.

Revenue RecognitionRevenues are recognized using the full accrual basis ofaccounting; therefore, revenues, including ad valoremtaxes, state revenue sharing, intergovernmental revenue,interest and other revenues of the assessor, arerecognized in the accounting period in which they areearned and become measurable.

Ad valorem taxes are assessed on a calendar year basis,become due on November 15 of each year, and becomedelinquent on December 31. They are recognized asrevenue in the year the taxes are assessed.

Intergovernmental revenue - The assessor receivesrevenue in the form of reimbursements from TerrebonneParish Consolidated Government for the GeographicalInformation System (G.I.S.) mapping program. Theassessor is developing a state-of-the-art computerizedmapping system which is funded by all parish taxingbodies on a prorated basis. As the assessor expends themonies out of his general fund's fund balance to fundthis program, the parish government reimburses him forhis costs, usually on a quarterly basis.

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Expense RecognitionExpenses are also recognized on the accrual basis;therefore, expenses, including salaries, operatingservices and expenses, intergovernmental expenses, etc.are recognized in the period incurred, if measurable.

2. Reporting EntityAs the governing authority of the parish, for reportingpurposes, the Terrebonne Parish Consolidated Governmentis the financial reporting entity for Terrebonne ParishThe financial reporting entity consists of(a) the primary government {Terrebonne ParishConsolidated Government), (b) organizations for whichthe primary government is financially accountable, and(c) other organizations for which nature andsignificance of their relationship with the primarygovernment are such that exclusion would cause thereporting entity's financial statements to bemisleading or incomplete.

Governmental Accounting Standards Board StatementNo. 14 established criteria for determining whichcomponent units should be considered part of theTerrebonne Parish Consolidated Government for financialreporting purposes.

The basic criterion for including a potential componentunit within the reporting entity is financialaccountability. The GASB has set forth criteria to beconsidered in determining financial accountability.This criteria includes:

1. Appointing a voting majority of an organization'sgoverning body, and

a. the ability of the parish government toimpose its will on that organization,and/or

b. the potential for the organization toprovide specific financial benefits to,or impose specific financial burdenson, the parish government.

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2. Organizations for which the parish governmentdoes not appoint a voting majority, but arefiscally dependent on the parish government.

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

Even though the assessor is an independently electedofficial, and is legally separate from the parishgovernment, the exclusion from the parish government'sfinancial statements would cause the parish government'sfinancial statements to be misleading or incomplete.Also, the assessor is fiscally dependent on the parishgovernment when the parish government has approvalauthority over the assessor's capital budget. Theparish government has approval authority over theassessor's capital budget because office space isfurnished to the assessor by the parish government andtitle to real property is in the name of the parishgovernment. Because of these reasons, the assessor isdetermined to be a component unit of the TerrebonneParish Consolidated Government.

3. Fund AccountingThe assessor uses a fund (General Fund) to report on itsfinancial position and the results of its operations.Fund accounting is designed to demonstrate legalcompliance and to aid financial management bysegregating transactions relating to certain governmentfunctions or activities. A fund is a separateaccounting entity with a self-balancing set of accounts.

The assessor's General Fund is classified as agovernmental fund. Governmental funds account forgeneral activities, including the collection anddisbursement of specific or legally restricted moniesand the acquisition of general fixed assets.

The General Fund, as provided by Louisiana RevisedStatute 47:1906, is the only fund of the assessor andaccounts for the operation of the assessor's office. Advalorem tax revenue authorized by Act 292 of 1985 isaccounted for in this fund. General operatingexpenditures are paid from this fund.

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TERRKBONNE PARISH ASSESSORHouma, Louisiana



4. BudgetsThe proposed budget for 2004 was published in theofficial journal and made available for publicinspection on December 17, 2003, A public hearing washeld and the budget was adopted on December 30, 2003.Appropriations lapse at year end. The original adoptedbudget was amended and advertised on December 10, 2004.A public hearing was held and the budget was adopted onDecember 30, 2004.

The budget is legally adopted and amended, as necessary,by the assessor. It is prepared and reported on theaccrual basis of accounting. Formal budget integrationis employed as a management control device during theyear. The assessor reserves all authority to makechanges to the budget. When actual revenues fail tomeet budgeted revenues by five per cent or more and/oractual expenditures exceed budgeted revenues by five percent or more, a budget amendment to reflect such changeis adopted by the assessor. Budgeted amounts includedin the accompanying financial statements include theoriginal adopted budget and any subsequent amendments,if applicable.

5. CashCash includes amounts in a demand deposit account.Under state law, the assessor may deposit funds indemand deposits, interest bearing demand deposits, moneymarket accounts, or certificates of deposit with statebanks organized under Louisiana law and national bankshaving principal offices in Louisiana.

6. Ad Valorem Tax ReceivablesThere was no provision made for uncollectible advalorem tax receivables because the amount was based onactual ad valorem taxes received in 2005.

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•TERREBONNB PARISH ASSESSORHouma, Louisiana



7. Capital AssetsCapital assets are recorded at either historical cost orestimated historical cost and are depreciated over theirestimated useful lives {excluding salvage value). Anydonated capital assets are recorded at their estimatedfair value at the date of donation. Estimated usefullife is management's estimate of how long the asset isexpected to meet service demands. Straight-linedepreciation is used based on the following estimateduseful lives: office furniture and equipment - 5 years;automobiles - 5 years.

Assets paid for by the parish government are notincluded in the assessor's capital assets.

8. Compensated AbsencesEmployees of the assessor earn from ten to fifteen daysof vacation leave each year depending on length ofservice, and ten days of sick leave. Leave benefits donot vest or accumulate and must be taken in the yearearned. Payment is not made for accumulated leave uponretirement, resignation or termination of employment.The cost of current leave privileges, computed inaccordance with GASB Codification Section C60, isrecognized as a current year expenditure in the GeneralFund when the leave is actually taken.

9. Long-term ObligationsThere were no long-term obligations at December 31,2004.

10. EncumbrancesEncumbrance accounting is not utilized by the assessordue to the nature of operations and the ability ofmanagement to monitor budgeted expenditures on a timelybasis.

11. Use of EstimatesThe preparation of financial statements in conformitywith generally accepted accounting principles requiresmanagement to make estimates and assumptions that affectcertain reported amounts and disclosures. Accordingly,actual results could differ from those estimates.

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NOTE B - LEVIED TAXES

In 2004, the assessor was authorized to levy up to 1.96 millsin ad valorem taxes. A 1.96-mill ad valorem tax was leviedfor the year ended December 31, 2004.

The following are the principal taxpayers for the parish:

TaxpayerHilcorp EnergyBellSouthThe Offshore CoApache Corp.Tenneco Gas

Type ofBusinessOil CompanyTelephoneDrillingOil CompanyPipeline Co.

2004AssessedValuation

$12,882,76010,572,5209,603,3908,355,4807.929.370

549.343,520

Percentageof TotalValuation

2.79%2.292.071.811.72

10.68%

The total assessed valuation for all taxpayers atDecember 31, 2004, was $461,860,250. This figure wasused in calculating the percentage of the "2004 assessedvaluation of each of the principal taxpayers" to the"assessed valuation for all taxpayers."

NOTE C - CASH

At December 31,as follows:

2004, the assessor had cash (book balances)

Checking account (demand deposit)

Total

$83.261

$83,261

These deposits are stated at cost. Under state law, thesedeposits (or the resulting bank balances) must be secured byfederal deposit insurance or the pledge of securities ownedby the fiscal agent bank. The market value of the pledgedsecurities plus the federal deposit insurance must at alltimes equal the amount on deposit with the fiscal agent.These securities are held in the name of the pledging fiscal

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TKRREBONNE PARISH ASSESSORHouma, Loui s iana


NOTE C - CASH (CONTINUED)

agent bank in a holding or custodial bank that is mutuallyacceptable to both parties. At December 31, 2004, theassessor had $106,103 in deposits (collected bank balances).These deposits were secured from risk by $100,000 of federaldeposit insurance, and $6,103 of securities pledged.

Although the bank balances were secured by the FDIC andpledged securities at year end, Louisiana Revised Statute39:1229 imposes a statutory requirement on the custodial bankfor securities pledged to safeguard deposits of the assessorduring the year and to advertise and sell the pledgedsecurities within 10 days of being notified by the assessorthat the fiscal agent has failed to pay deposited funds upondemand.

NOTE D - CAPITAL ASSETS

The capital assets used in the governmental-type activitiesare included on the Statement of Net Assets of the assessorand are capitalized at historical cost. Depreciation of allexhaustible capital assets used by the assessor is charged asan expense against operations. Accumulated depreciation isreported on the Statement of Net Assets. Depreciationexpense for financial reporting purposes is computed usingthe straight-line method over the useful lives of the capitalassets and is reported in the Statement of Activities.

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TERREBONNE PARISH ASSESSORHouma, Loui s iana


NOTE D - CAPITAL ASSETS (CONTINUED)

A summary of changes in capital assets and accumulateddepreciation during the year is listed as follows:

Capital AssetsOffice furniture& equipment

Automobiles

Total

Balance12/31/03

$142,82630.473

$173.299

Additions

$9,195

$9.195

Retire-ments

$5,699

$5,699

Balance12/31/04

$146,32230.473

$176,795

Less Accumulated Depreciation forOffice furniture& equipment $137,806 $4,052

Automobiles 30.473 -

Total $168.279 $4.052

$5,699

$5.699

$136,16030.473

$166.632

NOTE E - PENSION PLAN

Plan DescriptionSubstantially all employees of the Terrebonne ParishAssessor's office are members of the Louisiana Assessor'sRetirement System (System), a multiple-employer (costsharing), public employee retirement system, controlledand administered by a separate board of trustees.

All full-time employees who are under the age of 60 at thetime of original employment and are not drawing retirementbenefits from any other public retirement system inLouisiana are required to participate in the System.Employees who retire at or after age 55 with at least 12years of credited service or at or after age 50 with at least30 years of credited service are entitled to a retirementbenefit, payable monthly for life, equal to 3percent of their final-average salary for each year ofcredited service, not to exceed 100 per cent of theirfinal-average salary. Final-average salary is the employee'saverage salary over the 36 consecutive or joined months that

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NOTE E - PENSION PLAN (CONTINUED)

produce the highest average. Employees who terminate with atleast 12 years of service and do not withdraw their employeecontributions may retire at or after age 55 and receive thebenefit accrued to their date of termination. The Systemalso provides death and disability benefits. Benefits areestablished by state statute.

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

Funding PolicyFor all of 2004, plan members (employees) were required bystate law to contribute 8.0 percent of their annual coveredsalary into the retirement system. For the period of January1, 2004 to September 30, 2004, the assessor (employer) wasrequired to contribute 14.0 percent of an employee's annualcovered payroll into the System. For the period October 1,2004 to December 31, 2004, the employer's rate increased to14.5 percent. Contributions to the System also includeone-fourth of one percent (one percent for Orleans Parish) ofthe taxes shown to be collectible by the tax rolls of eachparish, plus revenue sharing funds appropriated by thelegislature. The contribution requirements of plan membersand the Terrebonne Parish Assessor are established and may beamended by state statute. As provided by Louisiana RevisedStatute 11:103, the employer contributions are determined byactuarial valuation and are subject to change each year basedon the results of the valuation for the prior fiscal year.The assessor's (employer) contributions to the System for theyears ending December 31, 2004, 2003 and 2002 were $61,294,$67,099 and $53,050, respectively, equal to the requiredcontributions for each year.

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TKRREBONNE PARISH ASSESSOR -Houtna, Louisiana


NOTE F - DEFERRED COMPENSATION PLAN

The assessor offers his employees a deferred compensationplan created in accordance with Internal Revenue Code Section457. The plan, which is available to all the assessor'semployees, permits employees to defer a portion of theirsalary until future years. The deferred compensation amountis not available to employees until termination, retirement,death or unforeseeable emergency. The assessor has nofiduciary responsibility to the administration of this plan.Participants, themselves, decide on the types of investmentsin which to invest their deferrals, and the plansadministration is performed by an organization which isseparate from the assessor's office. In this regard, thereare no reporting requirements which need to be applied forthis plan arrangement.

Contributions made into the plan on behalf of participatingemployees totaled $585 for the year. Deferrals on deposit inthe plan had a balance totaling $23,224 at December 31, 2004.This balance is stated at fair market value.

NOTE G - POSTRETIREMENT HEALTH CARE AND LIFE INSURANCE BENEFITS

The assessor provides certain continuing health care and lifeinsurance benefits for retired employees. Employees becomeeligible for these benefits if they reach normalretirement age while working for the assessor. Thesebenefits for retirees and similar benefits for activeemployees are paid monthly and jointly by the retiree,employee and the assessor. The assessor recognizes the costof providing these benefits (assessor's portion of premiums)as an expenditure when paid during the year. For the year,the cost of health care and life insurance benefits paid bythe assessor for retirees and active employees, totaled$39,588 and $116,653, respectively.

NOTE H - LEASES

As of December 31, 2004, there were no future annual leasecommitments for the assessor, nor were there any operating orcapital leases outstanding.

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TERREBONNE PARISH ASSESSORHoutna, Louisiana


NOTE I - COMPENSATED ABSENCES

No payment is made for accumulated leave upon retirement,resignation or termination of employment. Therefore, therewas no liability to be reported for compensated absences atDecember 31, 2004.

NOTE J - EXPENDITURES OF THE ASSESSOR NOT INCLUDED IN THE FINANCIALSTATEMENTS

Louisiana R.S. 33:4713 requires the Terrebonne ParishConsolidated Government to provide the assessor with allnecessary office space, utilities, furniture, equipment,supplies, and maps. During the year ended December 31, 2004,the parish government provided office space, utilities, andjanitorial services on a limited basis. The value of theseitems are not reflected in the accompanying financialstatements.

NOTE K - LITIGATION

At December 31, 2004, according to the assessor's legalcounsel, there was no pending or threatened litigation whichwould require a liability to be recorded on the financialstatements.

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REQUIRED SUPPLEMENTARY INFORMATION

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TERREBONNB PARISH ASSESSORHouma, Lou i s i ana

Required Supplementary InformationGeneral Fund - Governmental Fund

Statement of Revenues, Expenditures, and Changes inFund Balance - Budget (GAAP Basis) and Actual

For the Year Ended December 31, 2004

Variancewith FinalBudget

REVENUESAd valorem taxesState revenuesharingInterest earningsOther/miscellaneous

Total Revenues

EXPENDITURESSalaries and relatedexpendituresOperating services &maintenanceOffice materials andsuppliesProfessional servicesTravel and otherchargesOtherCapital outlay

Total Expenditures

Excess (Deficiency) ofRevenues overExpenditures

Fund Balance atBeginning of Year

Fund Balance at Endof Year

BudaetedOriginal

$750,000

50,00025,000250.000

1,075,000

750,000

95,000

25,000150,000

10,000-

40,000

1,070,000

5,000

474,000

$479,000

AmountsFinal

$800,000

48,0001,00080,000

929,000

770,000

95,000

25,00090,000

10,000-

20,000

1,010.000

(81,000)

900,000

$819,000

ActualAmounts

$895,876

48,0412,319

197,440

1,143,676

653,482

72,662

14,83061,436

1,911151,3919,751

965,463

178,213

939,959

$1,118,172

Positive(Negative)

$ 95,876

411,319

117,440

214.676

116,518

22,338

10,17028,564

8,089(151,391)10,249

44,537

259,213

39,959

$299,172


31

SUPPLEMENTARY INFORMATION SCHEDULE

32


Supplementary Information ScheduleSummary Schedule of Prior Year Audit Findings and

Corrective Action Plan for Current Year Audit FindingsFor the Year Ended December 31, 2004

I have audited the accompanying basic financial statements ofthe Terrebonne Parish Assessor as of and for the year endedDecember 31, 2004, and have issued my report thereon datedJune 16, 2005. I conducted my audit in accordance with generallyaccepted auditing standards and the standards applicable tofinancial audits contained in Government Auditing Standards, issuedby the Comptroller General of the United States. My audit of thefinancial statements as of December 31, 2004 resulted in anunqualified opinion.

Section I - Summary of Auditor's Report and Findings

Finding No. 1There was one material weakness in internal control that was areportable condition which required disclosure in the current-yearand prior-year audit reports (Finding No. 1).

Finding No. 2There were several related instances of noncompliance with federaland state employment tax reporting laws that are required to bereported in the current-year audit report as follows:

(1) In the first instance, during 2004 and 2005, the assessor wasnotified by letter from the Louisiana Department of Revenue andTaxation that certain monthly state withholding tax forms(form L-l) were not received by its office. After furtherinvestigation, it was determined that state withholding tax forms(form L-l) for the tax periods December, 2001, July, 2004 throughDecember, 2004 and February, 2005 were not received by theLouisiana Department of Revenue and Taxation. The total penaltiesincurred for these delinquent filings are $2,295.18 as of May 27,2005. The assessor and his bookkeeper feel confident that theywill be successful in getting these penalties reversed.

(2) During the investigation noted above, it was furtherdiscovered that the assessor's office was due refunds from theLouisiana Department of Revenue and Taxation totaling $36,252.62

33


Supplementary Information Schedule (Continued)Summary Schedule of Prior Year Audit Findings and


due to overpayments of state withholding taxes from prior taxperiods. Apparently, the assessor's bookkeeper was incorrectlycalculating the amount of monthly state withholding taxes due andremitting that incorrect amount. In July, 2004, the assessorreceived the entire $36,252.62 back from the Louisiana Departmentof Revenue and Taxation and deposited it back into his office'schecking account.

(3) In a separate instance, in February, 2005, the assessor'soffice received a letter from the Internal Revenue Service statingthat it would be conducting a compliance check of the employmenttax records of his office. The results of this compliance checkindicated that the assessor is required to: (a) start keeping trackof the personal use of his office's vehicle by he and hisemployees; (b) institute a written policy and procedure on cellphone usage to start accounting for any personal use of office cellphones by all employees; (c) begin to include into an employee'sincome the cost of group-term life insurance that is more than thecost of $50,000 of coverage as calculated by IRS tables; and (d)file forms 1099-MISC for years 2003 and 2004 for payments made toindividuals for services, including legal services, provided to theassessor's office. The compliance check also determined that theassessor's office completed forms 941, Employer's Quarterly FederalTax Return for all quarters beginning with June 30, 1997 and endingDecember 31, 2004, but the IRS had no record of receiving theseforms. The same was true for forms W-2, Employees Wages and TaxStatements for years 1998 to 2004. The IRS review of the office'semployment tax records also showed that many quarterly forms 941for the periods from September, 2000 to December, 2004 periodsshowed overpayments of federal withholding taxes which were carriedforward from one quarterly tax return (form 941) to the next in acumulative fashion. All the tax forms are currently beingprocessed by the IRS, and the results will be forthcoming.

Corrective Action and Additional Explanation:The assessor's office has given the IRS copies of all the requiredforms 941, W-2 and 1099-MISC for all the years requested. Inaddition, the assessor intends to cooperate fully with the IRS inan effort to bring these matters to a resolution.

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The assessor has stated that since he took office as TerrebonneParish Assessor back in 1997 his bookkeeper has maintained theresponsibility of preparing, signing and filing all of his office'spayroll tax forms. The assessor believed all along, that theseforms were being filed timely and that the IRS was receiving them.

The assessor will be putting additional internal controls in placeto prevent any of these situations from repeating themselves in thefuture. After the bookkeeper prepares the employment tax reportingdocuments (forms 941, W-2, etc.) and the payroll tax deposits (forfederal and state withholding taxes), someone else in theassessor's office will be independently verifying and checking thecorrectness of those documents before they are mailed out or thedeposits made.

There were no other findings, required to be reported, and nomanagement letter was issued for the current audit period.

The Terrebonne Parish Assessor did not receive any federal fundsduring the twelve months ended on December 31, 2004.

Anticipated Completion Date: Not applicable.

Contact Person:Gene P. Bonvillain,Terrebonne Parish AssessorP. 0. Box 5094Houma, Louisiana 70361-5094Phone #: 985-876-6620

35




Section II - Financial Statement Finding

Finding No.: 1 (Segregation of Duties)

Fiscal Year Finding Initially Occurred: Has existed frominception.

Finding Described: The size of the assessor's operations and itslimited staff preclude an adequate segregation of duties and otherfeatures of an adequate system of internal accounting control.

Corrective Action and Additional Explanation: The assessor isaware of this inadequacy in the internal control structure,however, he feels that to employ such controls would not be costbeneficial. No action will need to be taken.

Anticipated Completion Date: Not applicable.

Contact Person:Gene P. Bonvillain,Terrebonne Parish AssessorP. O. Box 5094Houma, Louisiana 70361-5094Phone #: 985-876-6620

36

OTHER REPORT REQUIRED BYGOVERNMENT AUDITING STANDARDS

KEITH J. ROVIRA 3?

CERTIFIED PUBLIC ACCOUNTANT

333 I METAIRIE ROAD

METAIRIE. LOUISIANA 7OOO1-5ZO7

83I-4O4O FAX (5O-a) 631-4042

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVERFINANCIAL REPORTING BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITH GOVERNMENT AUDITING STANDARDS

Honorable Gene P. BonvillainTerrebonne Parish AssessorA Component Unit of theTerrebonne Parish Consolidated GovernmentHouma, Louisiana

I have audited the basic financial statements of the TerrebonneParish Assessor, a component unit of the Terrebonne ParishConsolidated Government, as of and for the year ended December 31,2004, and have issued my report thereon dated June 16, 2005. Iconducted tny audit in accordance with auditing standards generallyaccepted in hte United States of America and the standardsapplicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States.

As a part of obtaining reasonable assurance about whether theTerrebonne Parish Assessor's basic financial statements are free ofmaterial misstatement, I performed tests of its compliance withcertain provisions of laws, regulations and contracts,noncompliance with which could have a direct and material effect onthe determination of the financial statement amounts. However,providing an opinion on compliance with those provisions was not anobjective of my audit, and accordingly, I do not express such anopinion. The results of my tests disclosed one instance ofnoncompliance that is required to be reported under GovernmentAuditing Standards. This issue is described in the accompanyingSchedule of Audit Findings in the Supplementary Information sectionof this audit report and is referenced as Finding No. 2.

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Internal Control Over Financial ReportingIn planning and performing my audit, I considered the TerrebonneParish Assessor's internal control over financial reporting inorder to determine my auditing procedures for the purpose ofexpressing my opinion on the basic financial statementsand not to provide assurance on the internal control over financialreporting. However, I noted a matter involving the internalcontrol over financial reporting and its operations that I considerto be reportable condition. Reportable conditions involve matterscoming to my attention relating to significant deficiencies in thedesign or operation of the internal control over financialreporting that, in my judgement, could adversely affect theassessor's ability to record, process, summarize and reportfinancial data consistent with the assertions of management in thebasic financial statements. This reportable condition is describedin the accompanying Schedule of Audit Findings in the SupplementaryInformation section of this audit report and is referenced asFinding No. 1.

A material weakness is a reportable condition in which the designor operation of one or more of the internal control components doesnot reduce to a relatively low level the risk that misstatements inamounts that would be material in relation to the basic financialstatements being audited may occur and not be detected within atimely period by employees in the normal course of performing theirassigned functions. My consideration of the internal control overfinancial reporting would not necessarily disclose all matters inthe internal control that might be reportable conditions and,accordingly, would not necessarily disclose all reportableconditions that are also considered to be material weaknesses.However, I considered the reportable condition described above tobe a material weakness.

This report is intended solely for the use of management and theState of Louisiana Legislative Auditor and should not be used forany other purpose. This restriction is not intended to limit thedistribution of this report which, upon acceptance by the State ofLouisiana Legislative Auditor, is a matter of public record.

Keith J. RoviraCertified Public Accountant

June 16, 2005

OS Ml 28 AMM 35 - Louisiana · 2020. 11. 13. · OS Ml 28 AMM:35 TERREBONNE PARISH ASSESSOR Houma,...

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