Vermilion Parish Clerk of Court - Louisiana · Balance sheet - governmental fund 8 Reconciliation of the governmental fund balance sheet to the statement of net assets 9 ... expenditures,

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VERMILION PARISH CLERK OF COURT

Financial Report

Year Ended June 30, 2006

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

Release Date

TABLE OF CONTENTS

Page

Independent Auditors' Report 1 -2

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS)Statement of net assets 5Statement of activities 6

FUND FINANCIAL STATEMENTS (FFS)Balance sheet - governmental fund 8Reconciliation of the governmental fund balance sheet

to the statement of net assets 9Statement of revenues, expenditures, and changes in fund balance -

governmental fund 10Reconciliation of the statement of revenues, expenditures, and

changes in fund balance of governmental fund to the statement of activities 11Statement of agency assets and liabilities - fiduciary funds 12

Notes to basic financial statements 13-23

REQUIRED SUPPLEMENTARY INFORMATIONBudgetary comparison schedule:

General Fund 25

OTHER SUPPLEMENTARY INFORMATION

OTHER FINANCIAL INFORMATIONMajor Governmental Fund -

General Fund - budgetary comparison schedule - revenues 28General Fund - budgetary comparison schedule - expenditures 29-31

Fiduciary Funds -Combining statement of assets and liabilities 32Combining statement of changes in assets and liabilities 33

COMPLIANCE AND INTERNAL CONTROLReport on Internal Control Over Financial Reporting and on

Compliance and Other Matters Based on an Audit ofFinancial Statements Performed in Accordance withGovernment Auditing Standards 35-36

Schedule of findings and questioned costs 37-38Summary schedule of prior year audit findings 39Management's corrective action plan 40

Darnali, Sikes,Gardes Frederick.(A Corporation of CettiBttf Public AeconUnU)

INDEPENDENT AUDITORS' REPORT

The Honorable Diane Meaux BroussardVermilion Parish Clerk of CourtAbbeville, Louisiana

Eugene H. Damall, CPA, Retired 1990Paula D. Bihm, CPA, Deceased 2002

E. Larry Sikes, CPA, CVA, CFP™Danny P. Frederick, CPA

Clayton E. Damall, CPA, CVAEugene H. Damall, III, CPA

Stephanie M. Higginbotham, CPAJohn P. Annato, CPA

J. Stephen Gardes, CPA, CVAJennifer S. Ziegler, CPA, CFP™

Chris A. Miller, CPA, CVAStephen R. Dischler, MBA, CPA

Steven G. Moosa, CPAM. Rebecca Gardes, CPA

Pamela Mayeaux Bonin, CPA, CVAJoan B. Moody, CPA

Kathleen T. Damall, CPAErich G. Loewer, III, MTX, CPA

Raegan D. Maggio, CPABarbara A. Clark, CPALauren V. Hebert, CPA

Michelle M. Bel lard, CPAJeremy C. Meaux, CPA

KevinS. Young, CPABarbara Ann Watts, CPA

Adam J. Curry, CPAChad M. Bailey, CPA

Carol C. Guillory, CPAChristy S. Dew, CPA

Heather N. Clement, CPAVictoria M. LaPrairie, CPA

Emily J. LeBoeuf, CPA

We have audited the accompanying financial statements of the governmental activities and major fund ofthe Vermilion Parish Clerk of Court, a component unit of the Vermilion Parish Police Jury, as of and forthe year ended June 30, 2006 , which collectively comprise the Clerk of Court's basic financial statementsas listed in the table of contents. These financial statements are the responsibility of the Vermilion ParishClerk of Court's management. Our responsibility is to express an opinion on these financial statementsbased on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis of our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities and major fund of the Vermilion Parish Clerkof Court as of June 30, 2006, and the respective changes in financial position for the year then ended inconformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated November 30,2006, on our consideration of the Vermilion Parish Clerk of Court's internal control over financialreporting and our tests of its compliance with certain provisions of laws, regulations, contracts, andgrants. That report is an integral part of an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in considering the results of our audit.

The budgetary comparison information on page 25 is not a required part of the basic financial statementsbut is supplementary information required by accounting principles generally accepted in the UnitedStates of America. We have applied certain limited procedures, which consisted principally of inquiriesof management regarding the methods of measurement and presentation of the required supplementaryinformation. However, we did not audit the information and express no opinion on it.

125 Rue BeauregardLafayette, LA 70508Phone: 337.232.3312Fax: 337,237.3614

1231 E. Laurel AvenueEunice, LA 70535

Phone: 337.457.4164Fax: 337.457.5060

1201 Brashear AvenueSuite 301

Morgan City, LA 70380Phone: 985.384.6264Fax: 985.384.8140

203 S. Jefferson StreetAbbeville, LA 70510Phone: 337.893.5470

Fax: 337.893.5470

Member of:American Institute of

Certified Public Accountants

Society of LouisianaCertified Public Accountants

Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the Vermilion Parish Clerk of Court's basic financial statements. The other supplementaryinformation section is presented for purposes of additional analysis and is not a required part of the basicfinancial statements. Such information has been subjected to the auditing procedures applied in the auditof the basic financial statements and, in our opinion, is fairly presented in all material respects in relationto the basic financial statements taken as a whole.

The Vermilion Parish Clerk of Court has not presented management's discussion and analysis that theGovernmental Accounting Standards Board has determined is necessary to supplement, although notrequired to be part of, the basic financial statements.

&

A Corporation of Certified Public Accountants

Abbeville, LouisianaNovember 30, 2006

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS)

VERMILION PARISH CLERK OF COURTAbbeville, Louisiana

Statement of Net AssetsJune 30, 2006

GovernmentalActivities

ASSETS

Cash and cash equivalents $ 444,619Receivables 111,649Prepaid expenditures 42,255Capital assets, net of depreciation 84,078

Total assets 682.601

LIABILITIES

Accounts payable 57,783Long term liabilities

Capital lease payable -Due within one year 2,124Due in more than one year 3,441

Total liabilities 63.348

NET ASSETS

Invested in capital assets, net of related debt 78,513Unrestricted 540.740

Total net assets $ 619.253

The accompanying notes are an integral part of the basic financial statements.

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FUND FINANCIAL STATEMENTS (FFS)


Balance Sheet - Governmental FundJune 30, 2006

Cash and cash equivalentsReceivablesPrepaid expenditures

Total assets

ASSETS

LIABILITIES AND FUND BALANCE

Liabilities:Accounts payable

Total liabilities

Fund balance:Reserved for prepaid expendituresUnreserved:

UndesignatedTotal fund balance

Total liabilities and fund balance

GeneralFund

$444,619111,64942.255

$598.523

$ 57,78357.783

42,255

498.485540.740

$598.523


8


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

June 30, 2006

Total fund balance for the governmental fund at June 30, 2006 $540,740

Cost of capital assets at June 30, 2006 $690,721Less: accumulated depreciation (606.643) 84,078

Capital lease payable:Due within one year (2,124)Due in more than one year (3,441) (5,565)

Total net assets of governmental activities at June 30, 2006 $619.253


9


Statement of Revenues, Expenditures, and Changes in Fund BalanceGovernmental Fund


GeneralFund

Revenues:Licenses and permits $ 17,673Fees, charges and commissions -

Fees for recording legal documents 1,160,987Court costs, fees and charges 331,796Fees for certified copies 47,781

Intergovernmental 75,748Miscellaneous 24,670

Total revenues 1,658,655

Expenditures:Current -

General government -Salaries 799,792Employee benefits 395,032Insurance 15,702Operation and maintenance 165,593Advertising 605Vehicle 12,592Professional services 40,124Miscellaneous 41,976Police jury expenditures 34,346

Capital outlay 19,934Debt service -

Principal 3,487Interest 273

Total expenditures 1,529,456

Excess of revenues over expenditures 129,199

Other financing sources:Proceeds from capital lease 6,580

Total other financing sources 6,580

Excess of revenues and other financialsources over expenditures 135.779

Fund balance, beginning of year 404.961

Fund balance, end of year $ 540.740


10


Reconciliation of the Statement of Revenues, Expenditures, andChanges in Fund Balance of Governmental Fund

To the Statement of ActivitiesYear Ended June 30, 2006

Total net change in fund balance per Statement of Revenues,Expenditures and Changes in Fund Balance $ 135,779

Add: Capital outlay costs which are reported as expenditures in the Statementof Revenues, Expenditures, and Changes in Fund Balance 19,934

Principal payments on long-term debt reported as expenditures in theStatement of Revenues, Expenditures, and Changes in Fund Balance 3,487

Less: Proceeds of capital lease provide current financial resources to GovernmentalFunds but increase liabilities in the Statement of Net Assets. (6,580)

Less: Depreciation expense not recognized as an expenditure in the (26.8361governmental fund

Total change in net assets per Statement of Activities $ 125.784


11


Statement of Agency Assets and Liabilities - Fiduciary Funds

June 30, 2006

AgencyFunds

ASSETS

Cash $1.411.214

LIABILITIES

Due to litigants and others $1,411,214


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Notes to Basic Financial Statements

NOTE 1 PURPOSE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

As provided by Article V, Section 28 of the Louisiana Constitution of 1974, a Clerk of Courtserves as the ex-officio notary public, the recorder of conveyances, mortgages, and other acts;and has other duties and powers provided by law. The Clerk of Court is elected for a four-year term.

Financial Reporting Entity

As the governing authority of the Parish, for reporting purposes, the Vermilion Parish PoliceJury is the financial reporting entity for Vermilion Parish. The financial reporting entityconsists of the primary government (Police Jury), organizations for which the primarygovernment is financially accountable, and other organizations for which the nature andsignificance of their relationship with the primary government are such that exclusion wouldcause the reporting entity's financial statements to be misleading or incomplete.

Governmental Accounting Standards Board Statement No. 14 established criteria fordetermining which component units should be considered part of the Vermilion Parish PoliceJury for financial reporting purposes. The basic criterion for including a potential componentunit within the reporting entity is financial accountability. The GASB has set forth criteria tobe considered in determining financial accountability. The criteria includes:

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

The ability of the Police Jury to impose its will on that organization and/or

The potential for the organization to provide specific financial benefits to orimpose specific financial burdens on the Police Jury.

Organizations for which the Police Jury does not appoint a voting majoritybut are fiscally dependent on the Police Jury.

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 Policy Jury provides the Vermilion Parish Clerk of Court (Clerk) with officespace, operational expenditures and certain capital purchases, the Clerk was determined to bea component unit of the Vermilion Parish Policy Jury, the financial reporting entity. Theaccompanying financial statements present information only on the funds maintained by theClerk and do not present information on the Police Jury, the general government servicesprovided by that governmental unit, or other governmental units that comprise the financialreporting entity.

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NOTE 1 PURPOSE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Basis of Presentation

The accompanying basic financial statements of the Clerk have been prepared in conformitywith governmental accounting principles generally accepted in the United States of America.The Governmental Accounting Standards Board (GASB) is the accepted standard-settingbody for establishing governmental accounting and financial reporting principles.

Government-Wide Financial Statements (GWFS)

The Statement of Net Assets and the Statement of Activities display information aboutthe Clerk as a whole. These statements include all the financial activities of the Clerk.Information contained in these statements reflects the economic resources measurementfocus and the accrual basis of accounting. Revenues, expenses, gains, losses, assets andliabilities resulting from exchange or exchange-like transactions are recognized when theexchange occurs (regardless of when cash is received or disbursed). Revenues, expenses,gains, losses, assets and liabilities resulting from nonexchange transactions arerecognized in accordance with the requirements of GASB Statement No. 33, Accountingand Financial Reporting for Nonexchange Transactions.

The statement of activities presents a comparison between direct expenses and programrevenues for the Clerk's governmental activities. Direct expenses are those that arespecifically associated with a program or function and, therefore, are clearly identifiableto a particular function. Program revenues include (a) fees and charges paid by therecipients of services offered by the Clerk, and (b) grants and contributions that arerestricted to meeting the operational or capital requirement of a particular program.Revenues that are not classified as program revenues are presented as general revenues.

Fund Financial Statements (FFS)

The Clerk uses funds to maintain its financial records during the year. Fund accountingis designed to demonstrate legal compliance and to aid management be segregatingtransactions related to certain Clerk functions and activities. A fund is defined as aseparate fiscal and accounting entity with a self-balancing set of accounts. The variousfunds of the Clerk are classified into two categories: governmental and fiduciary. Sincethe resources in the fiduciary funds cannot be used for Clerk operations, they are notincluded in the government-wide statements. The emphasis on fund financial statementsis on major funds, each displayed in a separate column. A fund is considered major if itis the primary operating fund of the entity or its total assets, liabilities, revenues, orexpenditures of the individual governmental fund is at least 10 percent of thecorresponding total for all governmental funds. The General Fund of the Clerk isconsidered to be a major fund. The funds of the Clerk are described below:

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Governmental Fund -

General Fund - This fund is the primary operating fund of the Clerk and it accounts forthe operations of the Clerk's office. The General Fund is available for any purposeprovided it is expended or transferred in accordance with state and federal laws andaccording to the Clerk's policy.

Fiduciary Funds -

Fiduciary funds reporting focuses on net assets and changes in net assets. The only fundsaccounted for in this category by the Clerk are agency funds. The agency funds accountfor cash held by the clerk of court as an agent for litigants pending court action. Thesefunds are custodial in nature (assets equal liabilities) and do not involve measurement ofresults of operations. Consequently, the agency funds have no measurement focus, butuse the modified accrual basis of accounting. The agency funds are as follows:

Advance Deposit Fund - The Advance Deposit Fund, as provided by Louisiana RevisedStatute 13:842, is used to account for advance deposits on suits filed by litigants. Theadvances are refundable to the litigants after all costs have been paid.

Registry of the Court Fund - The Registry of Court Fund, as provided by LouisianaRevised Statute 13:475, is used to account for funds which have been ordered by thecourt to be held until judgment has been rendered in court litigation.

Non-Support Fund - The Non-Support Fund, as provided by Louisiana Revised Statute13:848, accounts for the collection and disbursement of fees in criminal cases thathave been sent by the Department of Social Services.

Measurement Focus/Basis of Accounting

Measurement focus is a term used to describe "which" transactions are recorded with thevarious financial statements. Basis of accounting refers to "when" transactions are recordedregardless of the measurement focus applied.

Measurement Focus

On the government-wide statement of net assets and statement of activities, governmentalactivities are presented using the economic resources measurement focus as defined initem b. below. In the fund financial statements, the "current financial resources"measurement focus or the "economic resources" measurement focus is used asappropriate:

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a. The governmental fund utilizes a "current financial resources" measurementfocus. Only current financial assets and liabilities are generally included onits balance sheet. Their operating statement presents sources and uses ofavailable spendable financial resources during a given period. This fund usesfund balance as its measure of available spendable financial resources at theend of the period.

b. The government-wide financial statement utilize an "economic resources"measurement focus. The accounting objectives of this measurement focusare the determination of operating income, changes in net assets (or costrecovery), and financial position. All assets and liabilities (whether currentor noncurrent) associated with its activities are reported. Government-widefund equity is classified as net assets.

Basis of Accounting

In the government-wide statement of net assets and statement of activities, thegovernmental activities are presented using the accrual basis of accounting. Under theaccrual basis of accounting, revenues are recognized when earned and expenses arerecorded when the liability is incurred or economic asset used. Revenues, expenses,gains, losses, assets, and liabilities resulting from exchange and exchange-liketransactions are recognized when the exchange takes place.

Governmental fund financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues arerecognized when they are both measurable and available. Revenues are considered to beavailable when they are collectible within the current period or soon enough thereafter topay liabilities of the current period. For this purpose, the government considers revenuesto be available if they are collected within 60 days of the end of the current fiscal period.Expenditures (including capital outlay) generally are recorded when a liability isincurred, as under accrual accounting. However, debt service expenditures are recordedonly when payment is due.

Assets. Liabilities, and Equity

Cash and interest-bearing deposits

For purposes of the statement of net assets, cash and interest-bearing deposits include alldemand accounts, savings accounts, and certificates of deposits of the Clerk.

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The clerk has established the policy of including all short-term, highly liquid investmentswith maturities of 90 or fewer days in cash and cash equivalents. Under state law, theclerk may deposit funds in demand deposits, interest-bearing demand deposits, or timedeposits with state banks organized under Louisiana law or any other state of the UnitedStates, or under the laws of the United States.

Investments

Investments are limited by Louisiana Revised Statute (R.S.) 33:2955 and the clerk'sinvestment policy. If the original maturities of investments exceed 90 days, they areclassified as investments; however, if the original maturities are 90 or fewer days, theyare classified as cash equivalents.

Prepaid items

The clerk's policy regarding prepaid expenditures is to record the portion of insurancepremiums and maintenance agreements that is paid during the current fiscal year forfuture periods.

Capital assets

Capital assets, which include property, plant, and equipment, are reported in thegovernment-wide financial statements. Capital assets are capitalized at historical cost orestimated historical cost if purchased or constructed. Donated capital assets are recordedat their estimated fair market value at the date of donation. The Clerk maintains athreshold level of $1,000 for capitalizing capital assets.

The costs of normal maintenance and repairs that do not add to the value of the asset ormaterially extend asset lives are not capitalized.

Depreciation of all exhaustible capital assets is recorded as an expense in the statement ofactivities, with accumulated depreciation reflected in the statement of net assets. Sincesurplus assets are sold for an immaterial amount when declared as no longer needed forpublic purposes, no salvage value is taken into consideration for depreciation purposes.Depreciation is provided using the straight-line method of depreciation over thefollowing estimated useful lives:

EstimatedAsset Class Useful LivesOffice furniture 5-10Equipment 5-10

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Compensated absences

Employees of the Clerk of Court's office earn 5 to 20 days of leave each year dependingon length of service. Such leave is to be used for vacation, sickness, or emergencies.Employees are allowed to carryover a maximum of 15 days of unused leave to thefollowing year. Because the estimated amount that could be paid for leave at year-end isnot material, no accruals have been made for such absences.

Restricted net assets

For government-wide statement of net assets, net assets are reported as restricted whenconstraints placed on net asset use are either:

1. Externally imposed by creditors, grantors, contributors, or laws orregulations of other governments; and

2. Imposed by law through constitutional provisions or enabling legislation.

Fund equity

In the fund financial statements, governmental funds report reservations of fund balancefor amounts that are not available for appropriation or are legally restricted by outsideparties for use for a specific purpose. Any designations of fund balance representtentative management plans that are subject to change.

Revenues. Expenditures and Expenses

Operating revenues and expenses

Operating revenues and expenses are those that result from providing services andproducing and delivering goods and/or services. Revenues and fees, charges andcommissions for services are recorded when the Clerk is entitled to the funds.

Interest on interest-bearing deposits is recorded or accrued as revenue when earned.Substantially all other revenues are recorded when received.

Expenditures/Expenses

In the government-wide financial statements, expenses are classified by function and inthe funds financial statements, expenditures are classified by type.

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Budgetary and Budgetary Accounting

The budget is adopted on a basis consistent with generally accepted accounting principles(GAAP). Budgeted amounts included in the accompanying financial statements are asoriginally adopted or as finally amended by the Clerk of Court. Such amendments were notmaterial in relation to the original appropriations.

The following procedures apply to establishing the budgetary data reflected in the financialstatements:

1. A proposed budget is prepared and submitted to the Clerk of Court for thefiscal year no later than fifteen days prior to the beginning of each fiscal year.

2. A summary of the proposed budget is published and the public is notifiedthat the proposed budget is available for public inspection. At the same time,a public hearing is called.

3. A public hearing is held on the proposed budget at least ten days afterpublication of the call for a hearing.

4. After the holding of the public hearing and completion of all action necessaryto finalize and implement the budget, the budget is legally adopted prior tothe commencement of the fiscal year for which the budget is being adopted.

5. All budgetary appropriations lapse at the end of each fiscal year.

Bad Debts

Uncollectible amounts due for receivables are recognized as bad debts utilizing the directwrite-off method. Although this method is not in conformity with generally acceptedaccounting principles (GAAP), no allowance for uncollectible accounts receivable was madedue to immateriality at June 30, 2006.

Estimates

The preparation of financial statements in conformity with accounting principles generallyaccepted in the United States of America require management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure ofcontingent assets and liabilities at the date of the financial statements and the reportedamounts of revenues and expenditures during the reporting period. Actual results could differfrom those estimates.

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GovernmentalFund Type

$ 17,583

427.036

$ 444.619

FiduciaryFund Type

$ 14,877

1.396.337

$1,411,214

Total

$ 32,460

1.823.373

$ 1,855,833



NOTE 2 CASH AND INTEREST-BEARING DEPOSITS

Under state law, the Clerk may deposit funds with a fiscal agent bank organized under thelaws of the State of Louisiana, the laws of any other state in the union, or the laws of theUnited States, The Clerk may invest in United States bonds, treasury notes, or certificatesand time deposits of state banks organized under Louisiana law and national banks havingprincipal offices in Louisiana. At June 30, 2006, the Clerk of Court has cash and cashequivalents (book balances) totaling $1,854,114 as follows:

Cash and demand depositsMoney market and

savings accounts

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 agent.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. The following is a summary ofdeposit balances (bank balances) at June 30, 2006, and the related federal insurance andpledged securities:

Federal insurance 503,746Pledged securities (Category 3) 1.222.807

Total unsecured deposits $ 215,846

Pledged securities in Category 3 include uninsured or unregistered investments for which thesecurities are held by the broker or dealer, or by its trust department or agent, but not in theClerk of Court's name. Even though the pledged securities are considered uncollateralized(Category 3) Louisiana Revised Statute 39:1229 imposes a statutory requirement on thecustodial bank to advertise and sell the pledged securities within 10 days of being notified bythe Clerk of Court that the fiscal agent has failed to pay deposited ftmds upon demand.

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NOTE 3 CAPITAL ASSETS

Capital asset activity for the year ended June 30, 2006 was as follows:

Additions DeletionsBalance7/1/2005

Governmental activities:Computer equipment $ 337,679Office equipment 216,994Microfilm equipment 140,717

Total 695.390

Less: accumulated depreciationComputer equipment 291,961Office equipment 182,159Microfilm equipment 130.289

Total 604.409

Net capital assets $ 90.981

1,94011,4146.580

19.934

15,4499,3442.043

26.836

$(10,081)(4,600)(9.921)

(24.602)

(10,081)(4,600)(9.92 n

(24.602)

$ (6.902) $

Balance6/30/2006

$329,538223,807137.376690.721

297,329186,903122.411606.643

$ 84.078

Included in the above balances at June 30, 2006 are assets acquired through capital leases.

Capital leases included in the capital asset listing:

Computer equipmentOffice equipmentOther equipment

$139,17727,80866.647

$233.632

Depreciation expense of $26,836 was charged to the general government function.

NOTE 4 PENSION PLAN

Plan Description - The Vermilion Parish Clerk of Court contributes to the Clerk of CourtRetirement and Relief Fund (Retirement System), a cost-sharing multiple employer definedbenefit pension plan administered by the Clerk of Court Retirement and Relief Fund, a publiccorporation created in accordance with the provisions of Louisiana Revised Statute 11:1501 -1540 to provide retirement, disability and survivor benefits to members throughout the Stateof Louisiana. The Clerk of Court Retirement and Relief Fund issues a publicly availablefinancial report that includes financial statements and required supplementary information.That report may be obtained by writing to the Clerk of Court Retirement and Relief Fund,11745 Bricksome Ave., Suite B-l, Baton Rouge, Louisiana 70816.

21

VERMILIN PARISH CLERK OF COURTAbbeville, Louisiana


NOTE 4 PENSION PLAN (Continued)

Funding Policy - Plan members are required to contribute 8.25% of their annual coveredsalary and the Vermilion Parish Clerk of Court is required to contribute at an actuariallydetermined rate. The current rate is 15.75% of annual covered payroll. The contributionrequirements of plan members and the Vermilion Parish Clerk of Court are established andmay be amended by the Clerk of Court Retirement and Relief Fund. The Vermilion ParishClerk of Court's contributions to the Retirement System for the years ended June 30, 2006,2005, and 2004 were $120,149, $109,474, and $86,826.

NOTE 5 DEFERRED COMPENSATION PLAN

Certain employees of Vermilion Parish Clerk of Court participate in the Louisiana PublicEmployees Deferred Compensation Plan adopted under the provisions of the InternalRevenue Code Section 457. Complete disclosures relating to the Plan are included in theseparately issued audit report for the Plan, available from the Louisiana Legislative Auditor,Post Office Box 94397, Baton Rouge, Louisiana 70804-9397.

NOTE 6 CHANGES IN AGENCY FUND BALANCES

Balance, beginning of yearAdditionsReductions

Balance, end of year

NOTE 7 POST RETIREMENT BENEFITS

AdvancedDeposit

Fund

$ 508,055853,760

(859,643)

Registryof Court

Fund

$3,193,175670,043

(2.963.628)

$ 502,172 $ 899.590

Non-Support

Fund

$ 4,18237,455

(32.185)

$ 9.452

The Vermilion Parish Clerk of Court provides certain continuing health care and lifeinsurance benefits for retired employees. Substantially all of the Clerk's employees becomeeligible for these benefits if they reach normal retirement age while working for the Clerk ofCourt. These benefits for retires and similar benefits for active employees are providedthrough an insurance company whose monthly premiums are paid jointly by the employeesand the Clerk of Court. The Clerk of Court recognizes the cost of providing these benefits(the Clerk's portion of the premiums) as expenditures when the monthly premiums are due.

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NOTE 8 CAPITAL LEASE PAYABLE

The Clerk records items under capital leases as an asset and an obligation in theaccompanying financial statements. Assets under capital leases totaled $233,632 at June 30,2006, as detailed in Note 3. The obligation under capital lease is payable through December2008, with an implied interest rate of 6.150% per annum, with monthly payments of $201.Interest expense totaled $189 for the year ended June 30, 2006. Following is a schedule offuture minimum lease payments under capital lease, together with the present value of the netminimum lease payments as of June 30, 2006.

Year Ending June 30,2006

Less: Amount representing interest

Present value of net minimum lease payments

NOTE 9 OPERATING LEASES

$ 6,019453

$ 5.566

The Clerk is obligated under certain leases accounted for as operating leases. Operatingleases do not give rise to property rights or lease obligations, and the results of the leaseagreements are not reflected in the Clerk's account groups.

Future minimum rental payments required under operating leases that have initial orremaining non-cancelable lease terms in excess of one year as of June 30, 2006 amount to$2,632 and will be paid within the next year.

NOTE 10 EXPENDITURES OF CLERK'S OFFICE PAID BY THE VERMILION PARISH POLICEJURY

Certain operating expenditures of the Clerk's office are paid by the Vermilion Parish PoliceJury and are included in the accompanying financial statements. These expenditures aresummarized as follows:

Book bindingFilm processingMaintenanceSupplies

$ 9,9521,418

17,2385.738

$ 34,346

NOTE 11 RISK MANAGEMENT

The Clerk is exposed to risks of loss in the areas of auto liability, professional liability, andworkers' compensation. All of these risks are handled by purchasing commercial insurancecoverage. There have been no significant reductions in the insurance coverage during theyear.

23

REQUIRED SUPPLEMENTARY INFORMATION

24


Budgetary Comparison ScheduleGeneral Fund


Revenues:Licenses and permitsFees, charges and commissions -

Court costs, fees and chargesFees for recording legal documentsFees for certified copies

IntergovernmentalMiscellaneous

Total revenues

Expenditures:Current -

General government -SalariesEmployee benefitsInsuranceOperation and maintenanceAdvertisingVehicleProfessional servicesMiscellaneousPolice jury expenditures

Capital outlayDebt service -

PrincipalInterest

Total expenditures

Excess of revenuesover expenditures

Other financing sources:Proceeds from capital lease

Excess of revenues and otherfinancial sources over expenditures

Fund balance, beginning of year

Fund balance, end of year

BudgetOriginal Final

ActualAmounts

333,7501,017,200

50,00075,00023.750

1.512.700

19,125

19,125

404.961

$ 13,000 $ 17,500 $ 17,673

333,7501,105,900

47,00079,50024,025

1.607,675

331,7961,160,987

47,78175,74824,670

1.658.655

38,025

38,025

404.961

129.199

6,580

135,779

404.961

Variance WithFinal BudgetPositive or(Negative)

$ 173

(1,954)55,087

781(3,752)

64550.980

789,400382,00016,300171,250

70013,20038,00033,60040,0006,000

3,000125

1,493,575

799,300413,60015,755176,000

70013,00039,70042,01049,50017,500

2,50085

1,569,650

799,792395,03215,702165,593

60512,59240,12441,97634,34619,934

3,487273

1,529,456

(492)18,568

5310,407

95408(424)34

15,154(2,434)

(987)H88)

40,194

91.174

6,580

97,754

$ 424.086 $ 442.986 $ 540.740 $ 97.754

25

OTHER SUPPLEMENTARY INFORMATION

26

OTHER FINANCIAL INFORMATION

27


General Fund

Budgetary Comparison Schedule - RevenuesYear Ended June 30, 2006

Budget

Licenses and permits:Marriage licensesPassports

Total licenses and permits

Fees, charges and commissions:Court costs, fees, and charges -

Criminal costsCourt attendance reportingFax feesCopy card feesJury summons feesNotorial feesOtherStamp Copies

Total court costs, fees and charges

Fees for recording legal documents:RecordingsCancellationsMortgage certificatesSuits and successions

Total fees for recording legal documents

Fees for certified copies

Intergovernmental:Appropriation from Police JuryFederal grant - non-support

Total intergovernmental

Miscellaneous:Interest earnedClerks supplementOther

Total miscellaneous

Total revenues

Original

$ 6,0007,00013.000

30,00011,5007,500

250,00030,000

-4,750

-333,750

520,0002,00045,000450.200

1.017.200

50.000

40,00035.00075,000

6,50016,500750

23.750

Final

$ 5,50012.00017.500

33,0008,5006,500

240,00025,000

10015,6505.000

333.750

620,0001,10058,000426.800

1.105.900

47.000

49,50030.00079.500

5,30017,6501.075

24.025

ActualAmounts

5,40312.27017.673

29,4358,5606,496

246,40522,480

15013,1325.138

331.796

665,5041,180

56,442437.861

1.160.987

47.781

49,50026.24875.748

5,55317,650

1.467


(97)270173

(3,565)60(4)

6,405(2,520)

50(2,518)

138(1.954)

45,50480

(1,558)11.06155.087

781

(3.752)(3.752)

253

39224.670 645

$1.512.700 $1,607,675 $1.658,655 $ 50.980

28


General Fund

Budgetary Comparison Schedule - ExpendituresYear Ended June 30, 2006


ActualAmounts


Expenditures:Salaries -

ClerkDeputiesOthers

Total salaries

Employee benefits -Pension fundUniforms & related itemsPayroll taxesDeferred compensationHospitalization insurance

Total employee benefits

Insurance -Deputy liabilityErrors and omissionsFire and casualtyWorkers' compensation

Total insurance

Operation and maintenance -Office:

SuppliesPrintingPostage/box rentalMaintenance

Book bindingRental - microfilm storageTelephone/faxEquipment maintenanceEquipment rentalSoftware maintenanceSupplies - computerSupplies - copy cardShipping

Total operation and maintenance

106,400660,000

23,000789.400

110,0007,5009,000

20,500235.000382.000

30011,700

3004.000

16.300

45,0007,500

19,00010,0005,0002,000

13,00027,00012,00025,000

4,750500500

171.250

103,800667,00028.500

799.300

120,0005,0009,500

22,100257.000413.600

23011,700

5253,300

15.755

45,0006,500

20,50010,0001,6002,900

14,00020,00019,50025,00010,000

1.000176.000

103,038668,22028.534

799.792

120,1495,2309,393

22,121238.139395.032

14511,700

5303.327

15.702

44,6625,429

20,5896,8681,5682,872

12,57520,67717,67124,9926,733

957165.593

762(1,220)

(34)(492^

(149)(230)107(21)

18.86118.568

85

(5)(27^53

3381,071

(89)3,132

3228

1,425(677)

1,8298

3,267

4310.407

(continued)

29


General Fund

Budgetary Comparison Schedule - Expenditures (Continued)Year Ended June 30, 2006

Advertising -GeneralPublic notice

Total advertising

Automobile -RentalOperation and maintenanceInsurance

Total automobile

Professional services -AccountingLegalProgramScanning

Total professional services

Miscellaneous -Dues and subscriptionsClerk's supplemental compensationElection costsTravel and conventionsOther

Total miscellaneous

Police jury expenditures -Book bindingFilm processingEquipment maintenancePurchase of supplies

Total police jury expenditures

BudgetOriginal

200500700

8,0003,5001.700

13.200

16,0001,0001,000

20.00038.000

2,00018,500

-12,500

60033.600

12,0001,000

19,0008,000

40,000

Final

200500700

7,5003,8001,700

13.000

15,0002,700

-22.00039.700

2,00019,0006,250

13,2001.560

42.010

17,8001,700

25,0005,000

49,500

ActualAmounts

130475605

6,8724,0201,700

12,592

14,4902,4371,750

21.44640.124

2,20719,2636,252

12,7581.496

41.976

9,9521,418

17,2385,738

34,346


702595

628(220)

-408

510263

(1,750)554

(424^

(207)(263)

(2)442

6434

7,848282

7,762(738)

15,154(continued)

30


General Fund

Budgetary Comparison Schedule - Expenditures (Continued)Year Ended June 30, 2006


ActualAmounts


Capital outlay -Computer equipmentOffice equipment

Total capital outlay

Debt service -Principal - capital leaseInterest - capital lease

Total debt service

Total expenditures

1,0005.0006.000

3,000125

3.125

2,00015.50017.500

2,50085

2.585

8,52011.41419.934

3,487273

3.760

(6,520)4.086

(2.434)

(987)(188)

(1.175)

$1.493.575 $1.569.650 $1.529.456 $_ 40.194

31


Agency Funds

Combining Statement of Assets and LiabilitiesJune 30, 2006

Advance Registry Non-Deposit of Court Support Total

ASSETS

Cash $502.172 $ 899.590 $ 9,452 $1.411.214

LIABILITIES

Due to litigants and others $502.172 $ 899.590 $ 9.452 $1.411.214

32


Agency Funds

Combining Statement of Changes in Assets and LiabilitiesYear Ended June 30, 2006

Advance Registry Non-Deposit of Court Support Total

ASSETS

Balances, beginning of year $ 508.055 $3.193.175 $ 4.182 $3.705.412

Additions:Deposits in civil suits 833,212 - - 833,212Security bond deposits 20,548 - - 20,548Deposits by order of the court - 647,077 - 647,077Interest earnings - 22,966 - 22,966Deposits in non-support suits - ~ 37.455 37.455

Total additions 853.760 670.043 37.455 1.561.258

Total 1.361.815 3.863.218 41.637 5.266.670

Reductions:Payments by order of the court - 2,962,908 - 2,962,908Refund of deposits 183,956 - - 183,956Clerk's fees transferred to general fund 437,159 720 26,248 464,126Sheriffs fees - local 58,599 - 3,917 62,516Sheriffs fees - other parishes 49,094 - 2,020 51,114Commissioner of insurance - report fee 310 - - 310Court reporter fees 1,140 - - 1,140Attorney fees 2,931 - - 2,931Battered women's fees 2,660 - - 2,660Curator fees 933 - - 933Secretary of state fees 4,335 - - 4,335Court of appeal fees 1,672 - - 1,672Witness and other fees 200 - - 200Law library fees 5,788 - - 5,788Judges support compensation fees 25,670 - - 25,670Judicial costs 20,004 - - 20,004Payments to police jury 65.192 : : 65.192

Total reductions 859.643 2.963.628 32.185 3.855.456

Balances, end of year $ 502.172 $ 899.590 $ 9.452 $1.411.214

LIABILITIES

Due to litigants and others, beginning of year $ 508,055 $3,193,175 $ 4,182 $3,705,412

Additions 853,760 670,043 37,455 1,561,258

Reductions 859.643 2.963.628 32.185 3.855.456

Due to litigants and others, end of year $ 502.172 $ 899.590 $ 9.452 $1.411.214

33

COMPLIANCE

AND

INTERNAL CONTROL

34

Darnall, Sikes,Gardes Frederick.(A Gxporadoa of Cattted Public AnoantMt*)

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTINGAND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTSPERFORMED IN ACCORDANCE WITHGOVERNMENT AUDITING STANDARDS

The Honorable Diane Meaux BroussardVermilion Parish Clerk of CourtAbbeville, Louisiana

Eugene H. Darnall, CPA, Retired 1990Paula D. Bihro, CPA, Deceased 2002

E. Larry Sikes, CPA, CVA, CFP™Danny P. Frederick, CPA

Clayton E. Darnall, CPA, CVAEugene H. Darnall, IH, CPA

Stephanie M. Higginbotham, CPAJohn P. Armato, CPA

J. Stephen Gardes, CPA, CVAJennifer S. Ziegler, CPA, CFP™

Chris A. Miller, CPA, CVAStephen R. Diachler, MBA, CPA

Steven G. Moosa, CPAM. Rebecca Gardes, CPA

Pamela Mayeaux Benin, CPA, CVAJoan B. Moody, CPA

Kathleen T. Darnall, CPAErich G. Loewer, III, MIX, CPA

Raegan D. Maggio, CPABarbara A. Clark, CPALauren V. Hebert, CPA

Michelle M. Bellard, CPAJeremy C. Meaux, CPA

Kevin S. Young, CPABarbara Ann Watts, CPA

Adam J. Curry, CPAChad M. Bailey, CPA

Carol C. Guillory, CPAChristy S. Dew, CPA

Heather N. Clement, CPAVictoria M. LaPrairie, CPA

Emily J. LeBoeuf, CPA

We have audited the financial statements of the Vermilion Parish Clerk of Court, a component unit of theVermilion Parish Police Jury, as of and for the year ended June 30, 2006, and have issued our reportthereon dated November 30, 2006. We conducted out audit in accordance with auditing standardsgenerally accepted in the United States of America and the standards applicable to financial auditscontained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the Vermilion Parish Clerk of Court's internalcontrol over financial reporting in order to determine our auditing procedures for the purpose ofexpressing our opinion on the financial statements and not to provide assurance on the internal controlover financial reporting. However, we noted certain matters involving the internal control over financialreporting and its operation that we consider to be reportable conditions. Reportable conditions involvematters coming to our attention relating to significant deficiencies in the design or operation of theinternal control over financial reporting that, in our judgment, could adversely affect the Vermilion ParishClerk of Court's ability to record, process, summarize, and report financial data consistent with theassertions of management in the financial statements. The reportable conditions are described in theaccompanying summary schedule of current year audit findings and corrective action plan as items 06-1and 06-2.

A material weakness is a condition in which the design or operation of one or more of the internal controlcomponents does not reduce to a relatively low level the risk that misstatements caused by error or fraudin amounts that would be material in relation to the financial statements being audited may occur and notbe detected within a timely period by employees in the normal course of performing their assignedfunctions. Our consideration of the internal control over financial reporting would not necessarilydisclose all matters in the internal control that might be reportable conditions and, accordingly, would notnecessarily disclose all reportable conditions that are also considered to be material weaknesses.However, we believe that the reportable condition 06-1 described above is a material weakness.

125 Rue BeauregardLafayette, LA 70508Phone: 337.232.3312

Fax: 337.237.3614

1231 E. Laurel AvenueEunice, LA 70535

Phone: 337.457.4164Fax: 337.457.5060

1201 Brashcar AvenueSuite 301

Morgan City, LA 70380Phone: 985.384.6264Fax: 985.384.8140

203 S. Jefferson StreetAbbeville, LA 70510Phone: 337.893.5470

Fax: 337.893.5470

Member of:American Institute of

Certified Public Accountants

Society of LouisianaCertified Public Accountants

35

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Vermilion Parish Clerk of Court's financialstatements are free of material misstatement, we performed tests of its compliance with certain provisionsof laws, regulations, contracts and grant agreements, noncompliance with which could have a direct andmaterial effect on the determination of financial statement amounts. However, providing an opinion oncompliance with those provisions was not an objective of our audit, and accordingly, we do not expresssuch an opinion. The results of our tests disclosed an instance of noncompliance that is required to bereported under Government Auditing Standards that is described in the accompanying schedule of currentyear findings and corrective action plan as item 06-3.

This report is intended solely for the information and use of the Vermilion Parish Clerk of Court'smanagement, and federal awarding agencies and is not intended to be and should not be used by anyoneother than these specified parties. However, under Louisiana Revised Statute 24:513, this report isdistributed by the Legislative Auditor as a public document.

A Corporation of Certified Public Accountants

Abbeville, LouisianaNovember 30, 2006

36


Schedule of Findings and Questioned CostsYear Ended June 30, 2006

Part I: Summary of Auditor's Results

FINANCIAL STATEMENTS

Auditor's Report - Financial Statements

An unqualified opinion has been issued on Vermilion Parish Clerk of Court financialstatements as of and for the year ended June 30,2006.

Reportable Condition - Financial Reporting

Two reportable conditions in internal control over financial reporting were disclosed during theaudit of the financial statements and are reported as 06-land 06-2 in Part II.

Material Noncompliance - Financial Reporting

We noted one instance of material noncompliance during the audit of the financial statementsand is shown on item 06-3 in Part II.

FEDERAL AWARDS

This section is not applicable for the fiscal year ended June 30, 2006.

Part II: Findings Relating to an Audit in Accordance with Government Auditing Standards

06-1 Inadequate Segregation of Accounting Functions

Finding: Due to the small number of accounting personnel, the Vermilion ParishClerk of Court did not have adequate segregation of accounting functions within theaccounting system.

06-2 Deferred Compensation Plan - Employer Matching Contribution

Finding: The Clerk of Court participates in the Louisiana Public Employees DeferredCompensation Plan. The Clerk of Court elected from the inception in the year 2000 tomatch employees elective contributions up to 5% of compensation. During the audit,we noted that the matching contribution for certain employees was incorrectlycalculated.

06-3 Unsecured Registry of Court Deposits

Finding: Louisiana Revised Statute 39:1225 requires that funds on deposit be securedby federal deposit insurance or the pledge of securities. As of June 30, 2006, theVermilion Parish Clerk of Court had certain Registry of Court funds on deposit at localfinancial institutions which exceeded FDIC insurance but were not fully secured bypledged securities.

37


Schedule of Findings and Questioned Costs (Continued)Year Ended June 30,2006

Part III: Findings and Questioned Costs Relating to Federal Programs

At June 30, 2006, the Vermilion Parish Clerk of Court did not meet the requirements to have asingle audit in accordance with OMB Circular A-133, therefore this section is not applicable.

38


Summary Schedule of Prior Year Audit FindingsYear Ended June 30, 2006

05-1 Inadequate Segregation of Accounting Functions

Finding: Due to the small number of accounting personnel, the Vermilion Parish Clerk ofCourt did not have adequate segregation of accounting functions within the accounting system.

Status: This finding is unresolved. See finding 06-1.

39


Management's Corrective Action PlanYear Ended June 30, 2006

Response to Finding 06-1:

The Vermilion Parish Clerk of Court will segregate accounting functions to the extent possible.


The Vermilion Parish Clerk of Court will correct the employee match for prior years and properlycalculate the employee match for current and future periods.


The Vermilion Parish Clerk of Court will contact the financial institutions to assure that the proper valueof securities is pledged.

40

Documents

Vermilion Parish Clerk of Court - Louisiana · Balance sheet - governmental fund 8 Reconciliation of the governmental fund balance sheet to the statement of net assets 9 ... expenditures,