claiborne parish school board - louisianaapp1.lla.la.gov/publicreports.nsf/95c278cc197f0efc... ·...

Claibonte Parish School BoardHomer, Louisiana

Annual Financial ReportAs of and for the Year Ended June 30,2006

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

Ciaiborne Parish School BoardTable of Contents

Statement PageFINANCIAL SECTION

Independent Auditors' Report 1-2Required Supplemental Information: 3

Management's Discussion and Analysis (MD&A) 4-11Basic Financial Statements:

Government-wide Financial Statements (GWFS) 12Statement of Net Assets A 13Statement of Activities B 14

Fund Financial Statements (FFS) 15Governmental Funds:

Balance Sheet C 16-17Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Assets D 19Statement of Revenues, Expenditures, and Changes in Fund Balances E 20-23Reconciliation of the Governmental Funds Statement of Revenues,Expenditures, and Changes in Fund Balances to the Statement of Activities F 24

Fiduciary Funds:Statement of Assets and Liabilities G 25

Notes to the Basic Financial StatementsIndex 26Notes 27-43

ExhibitREQUIRED SUPPLEMENTAL INFORMATION 44

Budgetary Comparison Schedules 45General Fund 1-1 46Title I 1-2 47Maintenance Funds 1-3 48School Lunch 1-4 49Special Education 1-5 50

Notes to the Budgetary Comparison Schedules 51-53

SUPPLEMENTAL INFORMATION 54Combining Nonmajor Governmental Funds - by Fund Type

Combining Balance Sheet 2 55Combining Statement of Revenues, Expenditures, and Changes hi Fund Balances 3 56-57

Nonmajor Special Revenue Funds 59Combining Balance Sheet 4 60-61Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 5 62-63

Nonmajor Debt Service Funds 64Combining Balance Sheet 6 65Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 7 66

Agency Funds 67Statement of Changes in Fiduciary Assets and Liabilities 8 68School Activities Agency Fund - Schedule of Changes in Deposits Due Others 9 69Sales Tax Agency Fund - Schedule of Changes in Deposits Due Others 10 70

(Continued)

Claiborne Parish School BoardTable of Contents

OTHER SCHEDULES 71Maintenance Fund Accounts

Combining Balance Sheet 11 72-73Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances 12 74-75

Schedule of Compensation Paid Board Members 13 76

SINGLE AUDIT INFORMATION 77Report on Internal Control Over Financial Reporting and on Compliance

and Other Matters Based on an Audit of Financial Statements Performedin Accordance With Government Auditing Standards 78-79

Report on Compliance With Requirements Applicable to Each Major Program andon Internal Control Over Compliance in Accordance With OMB Circular A-133 80-81

Schedule of Expenditures of Federal Awards 82Notes to the Schedule of Expenditures of Federal Awards 83Schedule of Findings and Questioned Costs 84-86

OTHER INFORMATION 87Schedule of Prior Audit Findings 88Corrective Action Plan for Current Year Audit Findings 89-90Management Letter Items

Management Letter 91 -92Status of Prior Management Letter Item 93Independent Accountants' Report on Applying Agreed-upon Procedures 94-96Schedules of Performance and Statistical Data as Prepared By Management 97-106

(Concluded)

ALLEN, GREEN & WILLIAMSON, LLP*&/S** T\ A \ • P. O.Box6075

3(| L//V I r Monroe, LA 71211-6075

'VV' ry*

CERTIFIED PUBLIC ACCOUNTANTS Margie Williamson, CPA

, ^ w . _^.2414FerrandStreet Phone: (318)388-4422 Dw*FM*ofl;a»AMonroe, IA 71201 Fax (318)38&4664

IfcO*. M Tnllfrw* ffiStt 741-0205 Ernest L. Allen. CPANever Underestimate Ttw Value? Toll-tree. {888) 741-ozos (Retired)www.allengrcencpa.com i963 _ 2000

INDEPENDENT AUDITORS' REPORT

Board MembersClaiborne Parish School BoardHomer, Louisiana

Basic Financial Statements We have audited the accompanying financial statements of the governmentalactivities, each major fund and the aggregate remaining fund information of Claiborne Parish School Board, asof and for the year ended June 30, 2006, which collectively comprise the School Board's basic financialstatements, as listed in the table of contents. These financial statements are die responsibility of the SchoolBoard's management Our responsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United Slates ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued bythe Comptroller General of the United States. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free of material misstatement An auditincludes consideration of internal control over financial reporting as a basis for designing audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theSchool Board's internal control over financial reporting. Accordingly, we express no such opinion. An auditincludes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,assessing the accounting principles used and the significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis forour opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of the governmental activities, each major fund and the aggregate remaining fund informationof the School Board as of June 30,2006, and the respective changes in financial position for the year men endedin conformity with accounting principles generally accepted in the United States of America,

In accordance with Government Auditing Standards, we have also issued our report dated February 14,2007 onour consideration of the School Board's internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. Thepurpose of that report is to describe the scope of our testing of internal control over financial reporting andcompliance and the results of that testing, and not to provide an opinion on the internal control over financialreporting or on compliance. That report is an integral part of an audit performed in accordance withGovernment Auditing Standards and should be considered hi assessing the results of the audit

Required Supplemental Information The Management's Discussion and Analysis and the BudgetaryComparison Schedules are not a required part of the basic financial statements but are supplemental informationrequired by the Governmental Accounting Standards Board. We have applied certain limited procedures, whichconsisted principally of inquiries of management regarding the methods of measurement and presentation of therequired supplemental information. However, we did not audit the information and express no opinion on it.

1Also Located in Sbrevtport, Louisiana

Member: American Institute of Certified Public Accountants, Society of Louisiana Certified Public Accountants andAmerican Institute of Certified Public Accountants Diviskm for C? A Finns

Equal Opportunity Employer

Supplemental Information and Other Schedule Our audit was conducted for the purpose of forming opinionson the financial statements of the governmental activities, each major fund, and the aggregate remaining fundinformation of the School Board, which collectively comprise the School Board's basic financial statements.The accompanying information identified in the table of contents as supplemental information and otherschedules are presented for purposes of additional analysis and is not a required part of the basic financialstatements. Such information has been subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financialstatements taken as a whole.

Other Information The information identified in the table of contents as Other Information is presented forpurposes of additional analysis and is not a required part of the basic financial statements of the School Board.Such information has not been subjected to the auditing procedures applied in the audit of the basic financialstatements and, accordingly, we express no opinion on it.

ALLEN, GREEN & WILLIAMSON, LLP

Monroe, LouisianaFebruary 14,2007

Ciaiborne Parish School Board

REQUIRED SUPPLEMENTAL INFORMATION:

MANAGEMENT'S DISCUSSIONAND ANALYSIS (MD&A)

Ciaiborne Parish School BoardManagement's Discussion and Analysis (MD&A)

Our discussion and analysis of Ciaiborne Parish School Board's financial performance provides an overview ofthe School Board's financial activities for the fiscal year ended June 30,2006. Please read it in conjunction withthe School Board's financial statements which follow this Management's Discussion and Analysis.

The Management's Discussion and Analysis (MD&A) is an element of the new reporting model adopted by theGovernmental Accounting Standards Board (GASB) in their Statement No. 34 Basic Financial Statements - andManagement's Discussion and Analysis - for State and Local Governments issued June 1999

The Ciaiborne Parish School Board was created by Louisiana Revised Statute (LSA-R.S.) 17:51 to providepublic education for the children within Ciaiborne Parish. The School Board is authorized by LSA-R.S. 17:81to establish policies and regulations for its own government consistent with the laws of the State of Louisianaand the regulations of the Louisiana Board of Elementary and Secondary Education. The School Board iscomprised often members who are elected for four years.

The School Board operates eight schools within the parish with a total enrollment of 2,763 pupils for the yearended June 30,2006. In conjunction with the regular educational programs, some of these schools offer specialeducation and/or adult education programs. In addition, the School Board provides transportation and schoolfood services for the students.

FINANCIAL HIGHLIGHTS The primary resources available to the School Board are local revenues whichare primarily tax receipts, state revenues which are primarily minimum foundation funding and costreimbursement grants, and federal revenues which are primarily cost reimbursement grants.

The fund balances of all governmental funds decreased $1,133,251. The fund balance of the general fundincreased $385,931 mainly due to reduction in workforce and related expenses.

The Title I Fund is a cost reimbursement fund.

The Maintenance Funds account for the proceeds of ad valorem taxes levied to maintain and improve schoolfacilities in the parish. This fund increased $241,655 during the year mainly due to an increase in revenue andreduction in costs of maintenance due to new facilities.

School Lunch fund balance decreased $37,847 which was due mainly to revenues for current year being $85,099less than expenses for the current year. School Lunch has had a deficit fond balance for 2005 and 2006 of$49,512 and $87,359, respectively.

The Special Education Fund is a cost reimbursement fund.

The total cost of the School Board's programs for the fiscal year was $24,981,333. Federal and state grants paid$4,466,028, charges for services $197,668, MFP $13,753,864, local sales tax $3,349,447 and local ad valoremtaxes $3,521,578.

Parish School BoartManiagemcnt's Discussion and Analysis (M35&A)

USING THIS ANNUAL RIEFOiRT The School Board's annual report consists of a scries of financialstatements that show information for the School Board as a whole, its funds, and its fiduciary responsibilities.The Statement of Net Assets and the Statement of Activities provide information about the activities of theSchool Board as a whole and present a longer-term view of the School Board's finances. Our fund financialstatements are included later in this report. For our governmental activities, these statements tell how wefinanced our services in the short-term as well as what remains for future spending. Fund statements also maygive you some insights into the School Board's overall financial health. Fund financial statements also reportthe School Board's operations in more detail than the government-wide financial statements by providinginformation about the School Board's most significant funds, the General fund, Title I fund, Maintenance funds,School Lunch fund, and the Special Education fund. The remaining statement - the Statement of FiduciaiyAssets and Liabilities presents financial information about activities for which the School Board acts solely asan agent for the benefit of students and parents.

fc^?:^^£/ri^^^i??^^$\£:•>?"*.: *£*'*•-•<$:'" ^!£;::f-^>jp':^

'""%Ss£"Jr'i

Our auditor has provided assurance in his independent auditor's report, located immediately preceding thisManagement's Discussion and Analysis, that the Basic Financial Statements are fairly stated. Varying degreesof assurance is being provided by the auditor regarding the Required Supplemental Information and theSupplemental Information identified above. A user of this report should read the independent auditor's reportcarefully to ascertain the level of assurance being provided for each of the other parts in the Financial Section.

Claiborne Parish School BoardManagement's Discussion and Analysis (MD&A)

Reporting the School Board as a Whole

The Statement of Net Assets and the Statement of Activities

Our analysis of the School Board as a whole begins with the government-wide financial statements. One of themost important questions asked about the School Board is, "Is the School Board as a whole better off or worseoff financially as a result of the year's activities?" The Statement of Net Assets and the Statement of Activities,which appear first in the School Board's financial statements, report information on the School Board as a wholeand its activities in a way that helps you answer this question. We prepare these statements to include all assetsand liabilities, using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account regardless of whencash is received or paid.

These two statements report the School Board's net assets - the difference between assets and liabilities, asreported in the Statement of Net Assets - as one way to measure the School Board's financial health, or financialposition. Over time, increases or decreases in the School Board's net assets - as reported in the Statement ofActivities - are one indicator of whether its financial health is improving or deteriorating. The relationshipbetween revenues and expenses is the School Board's operating results. However, the School Board's goal is toprovide services to our students, not to generate profits as commercial entities do. One must consider manyother non-financial factors, such as the quality of the education provided and the safety of the schools to assessthe overall health of the School Board.

The Statement of Net Assets and Statement of Activities report the following activity for the School Board:

Governmental activities - All of the School Board's services are reported here, including instruction, plantservices, transportation, and food services. Properly taxes, sales taxes, Minimum Foundation Program funds,and state and federal grants finance most of these activities.

Reporting the School Board's Most Significant Funds

Fund Financial Statements

The School Board's fund financial statements provide detailed information about the most significant funds - notthe School Board as a whole. Some funds are required to be established by State law and by bond covenants.However, the School Board establishes many other funds to help it control and manage money for particularpurposes (like the School Food Service) or to show that it is meeting legal responsibilities for using certaintaxes, grants, and other money (like grants the School Board receives from the U.S. Department of Education).The School Board's governmental funds use the following accounting approach:

Governmental funds - All of the School Board's services are reported in governmental funds. Governmentalfond reporting focuses on showing how money flows into and out of funds and the balances left at year-end thatare available for spending. They are reported using an accounting method called modified accrual accounting,which measures cash and all other financial assets that can readily be converted to cash. The governmental fundstatements provide a detailed short-term view of the School Board's operations and the services it provides.Governmental fund information helps you determine whether there are more or fewer financial resources thatcan be spent in the near future to finance the School Board's programs. We describe the relationship (ordifferences) between governmental activities (reported in the Statement of Net Assets and the Statement ofActivities) and governmental funds in reconciliation on Statements D and F.

Ciaiborne Parish School BoardManagement's Discussion and Analysis (MD&A)

The School Board as Trustee

Reporting the School Board's Fiduciary Responsibilities

The School Board is the trustee, or fiduciary, for its student activities funds, and scholarship fund. All of theSchool Board's fiduciary activities are reported in the Statements of Fiduciary Assets and Liabilities. Weexclude these activities from the School Board's other financial statements because the School Board cannot usethese assets to finance its operations. The School Board is responsible for ensuring that the assets reported inthese funds are used for their intended purposes.

THE SCHOOL BOARD AS A WHOLE The School Board's net assets were $14,589,337 at June 30,2006.Of this amount $4,909,040 was unrestricted. Restricted net assets are reported separately to show legalconstraints from debt covenants and enabling legislation that limit the School Board's ability to use those netassets for day-to-day operations. Our analysis below focuses on the net assets, (Table 1) and the change in netassets (Table 2) of the School Board's governmental activities.

Table 1Net AssetsJune 30,

Governmental Activities

Current and other assetsCapital assets

Total assets

Current and other liabilitiesLong-term liabilities

Total liabilities

Net assetsInvested in capital assets, net of debtRestrictedUnrestricted

Total net assets

2006

$ 9,870,37722,011.71931,882.096

3,812,13415,480.62517,292.759

7,502,6282,177,6694.909.040

$14.589.337

2005

$11,202,13420.584.86S31,786,999

1,963,86316,095,07018.058,933

Variance

$(1,331,757)1.426.854

95.097

(151,729)(614.445)(766.174)

5,468,502 2,034,1261,422,500 755,1696.837.064 (1.928.024)

$13.728.066 $ 861.271

The $4,909,040 in unrestricted net assets of governmental activities represents accumulated results of all pastyears operations, ft means that if the School Board had to pay off all of its bills today including all of its non-capital liabilities such as compensated absences, there would be $4,909,040 left.

The results of mis year's operations for the School Board as a whole are reported in the Statement of Activities.Table 2 on the next page, takes the information from that statement and rearranges it slightly so that readers cansee total revenues for the year.

Ciaiborne Parish School BoardManagement's Discussion and Analysis (MD& A)

Table 2Changes in Net Assets

For the Year Ended June 30,

Net Assets - beginningPrior Period AdjustmentNet Assets- RestatedRevenues:Program revenues

Charges for servicesOperating grants and contributionsCapital grants and contributions

General RevenuesAd valorem taxesSales taxesState equalizationOther general revenues

Total revenuesFunctions/Program Expenses:Instruction

Regular programsSpecial programsOther instructional programs

Support servicesStudent servicesInstructional staff supportGeneral administrationSchool administrationBusiness servicesPlant servicesStudent transportation servicesCentral services

Food ServicesCommunity service programsInterest on long-term debt

Total expensesIncrease (decrease) in net assetsNet Assets - ending

Governmental Activities

2006$13,728,066

Q

748,6061,753,577642,733

1,362,037231,568

1,993,8761,307,318

10,2851,692,828

18,021743.877

24.981.333861.271

$14.589.337

2005$10,665,5153.800.300

13,728,066 14,465,815

197,668 193,9124,466,028 4,332,176

0 0

3,521,578 3,391,2883,349,447 2,719,473

13,753,864 13,459,393554.019 402.850

25.842,604 24.499.092

9,521,238 10,107,9882,743,964 2,630,3472,211,405 2,435,842

703,3921,557,465

618,5371,407,593

266,4941,889,9281,124,702

8,3001,745,059

20,244720.951

25.236.842(737.750)

$13.728.065

Variance$ 3,062,551

(3.800300)(737,749)

3,756133,852

0

130,290629,974294,471151.169

1343.512

(586,750)113,617

(224,437)

45,214196,11224,196

(45,556)(34,926)103,948182,616

13985(52,231)(2,223)22,926

(255.509)1.599.021

$ 86L271

Governmental Activities As reported in the Statement of Activities, the cost of all governmental activities thisyear was $24,981,333. The amount that taxpayers ultimately financed for these activities through School Boardtaxes was $20,317,637 because some of the cost was paid by those who benefited from the program $197,668 orby other governments and organizations who subsidized certain programs with grants and contributions$4,466,028. The remaining $20,317,637 was paid by MFP funds of $13,753,864 and other revenues of$554,019 which are mainly interest income and local taxes.


In the table below we have presented the cost of each of the School Board's six largest functions - regularprograms, special programs, Other instructional programs, instructional staff support programs, plant services,and food services as well as each program's net cost (total cost less revenues generated by the activities). Netcost shows the financial burden that was placed on the School Board's taxpayers by each of these functions.Providing this information allows our citizens to consider the cost of each function in comparison to the benefitsthey believe are provided by that function.

Regular programs instructionSpecial programs instructionOther instructional programsInstructional staff support programsPlant servicesFood servicesA]J others

Totals

Year Ended June 30,2006Governmental Activities

Total Costof Services

$9,521,2382,743,9642,211,4051,753,5771,993,8761,692,8285,064.445

Net Costof Services

$8,931,9151,406,4472,012,6931,026,5651,868,062

463,9134,608.042urzj

2006Total Cost of Services

VersusNet Cost of Services

Year Ended June 30,2005Governmental Activities

Total Cost Net Costof Services of Services

$10,107,988 $9,180,6882,630,347 2,263,2122,435,842 1,132,8541,557,465 944,5161,889,928 1,843,5711,745,059 576,0494,870.213 4.769.864

S25.236.842 $20.710.754

$10,000,000 -

$9,000,000 -

$8,000,000 -

$7,000,000

$6,000,000 -

$5,000,000 -

$4,000,000 -

$3,000,000 -

$2,000,000 -

$1,000,000 -

$0Regular fen. SpocialProg. Other Lin. hsi.Staff Supp. Pbm Scrvkai Food Service All Other

hit. Prog,

El Total Cost of Services I Net Cost of Services

Clatborne Parish School BoardManagement's Discussion and Analysis (MD&A)

THE SCHOOL BOARD'S FUNDS As we noted earlier, the School Board uses funds to help it control andmanage money for particular purposes. Looking at funds helps you consider whether the School Board is beingaccountable for the resources taxpayers and others provide to it but may also give you more insight into theSchool Board's overall financial health.

General Fund Budgetary Highlights As mentioned earlier the School Board revises its budget as it attempts todeal with unexpected changes in revenues and expenditures. (A schedule showing the School Board's originaland final budgets compared with actual results is provided in the required supplemental information section ofthis report.)

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets At June 30,2006, the School Board had $22,011,719 invested in a broad range of capital assets,including land, buildings, and fiirnrture and equipment. This amount represents a net increase (includingadditions, deductions and depreciation) of $1,426,854, or 7 percent, from last year.

Capital Assets at June 30,Governmental Activities

2006 2005 VarianceLand $ 496,279 $ 357,279 $ 139,000Buildings 20,284,127 18,946,413 1,337,714Furniture and equipment 1,231,313 1,281,173 (49,860)Construction in progress 0 0 0

Totals S22.0U.719 $20.584.865 $1.426.854

Debt Administration At June 30, 2006, the School Board had $15,480,625 outstanding verses $16,095,070,which is a decrease of 4%. Under state statute, the School Board is legally restricted from incurring long-termbonded debt in excess of 50% of the assessed value of taxable property. At June 30, 2006, the School Board'soutstanding debt consisted of:

Long Term Obligations at June 30.2006 2005

Qualified zone academy bond $ 259,091 $ 286,364Bonded debt 14,250,000 14,830,000Claims payable 28,000 6,064Compensated absences 943.534 972.642

Total $15.480.625 $16.095.070

Additional information on capital assets and long-term debt can be found in Note 6 and Note 12, respectively, ofthe notes to financial statements.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATESDuring the 2006-2007 year, the Claiborne Parish School Board has plans to continue to reduce staffing throughattrition and to be frugal with spending practices. The tax base of the School Board will be decreasing due tothe closing of local businesses.

10


CONTACTING THE SCHOOL BOARD'S FINANCIAL MANAGEMENT Our financial report isdesigned to provide our citizens, taxpayers, parents, students, and investors and creditors with a generaloverview of the School Board's finances and to show the School Board's accountability for the money itreceives. If you have questions about this report or wish to request additional financial information, contactGinger G. Woodall, Business Manager, at Claiborne Parish School Board, 415 East Main Street, P. O. Box 600,Homer, Louisiana 71040, telephone number (318) 927-3502.

11

Claiborne Parish School Board

BASIC FINANCIAL STATEMENTS:

GOVERNMENT-WIDEFINANCIAL STATEMENTS (GWFS)

12

CLAIBORNE PARISH SCHOOL BOARD

STATEMENT OF NET ASSETSJune 30,2006

Statement A

GOVERNMENTALACTIVITIES

ASSETSCash and cash equivalentsInvestmentsReceivablesInventoryOther assets

Capital assets:

LandCapital assets, net of depreciation

TOTAL ASSETS

LIABILITIESAccounts, salaries and other payabtesUnearned revenueInterest payable on long-term debtLong-term liabilities

Due within one yearDue in more than one year

TOTAL LIABILITIES

5,328,5903,114,0181,399,700

26,4321.637

496,27921.515.440

31.882.096

1,580,78710,295

221,052

1,796,51113.684.114

17.292.759

NET ASSETSInvested in capital assets, net of related debt

Restricted for:Debt ServiceSalaries and benefits

Unrestricted

TOTAL NET ASSETS

7.502,628

1,082,291

1,095,3784.909.040

14.589.337

THE NOTES TO THE BASIC FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT.

13

CLAJBORNE PARISH SCHOOL BOARD

STATEMENT OF ACTIVITIESFor the Year Ended June 30, 2006

Statement B

PROflRAM REVENUES

EXPENSES

CHARGES FOR

SERVICES

OPERATING

GRANTS AND

CONTRIBUTIONS

NET (EXPENSE)

REVENUE AND

CHANGES IN

NET ASSETS

FUNCTIONS/PROGRAMS

Governmental activities:

Instruction:

Regular programs

Special programs

Other instructional programs

Support services:

Student services

Instructional staff support

Genera} administration

School administration

Business services

Plant services

Student transportation services

Central services

Food services

Community service programs

Interest on long-term debt

Total Governmental Activities

$ 9,521,238$ 0$

2,743,964

2,211,405

748,606

1,753,577

642,733

1.362,037

231,568

1,993,876

1.307,318

10,285

1,692,828 197,668

18,021

743.877

24.981.333 197.668

589,323 $

1,337,517

198,712

94,613

727,012

24,854

66,804

12,086

125,814

250,981

553

1,031,247

6,512

0

4.466.028

(8,931,915)

(1,406,447)

(2,012,693)

(653,993)

(1,026,565)

(617,879)

(1,295.233)

(219,482)

(1,868,062)

(1,056,337)

(9,732)

(463,913)

(11,509)

f743.877)

General revenues:

Taxes:

Ad valorem taxes, levied for general purposes 1,935,235

Ad valorem taxes, levied for debt service programs 1,586,343Sales taxes, levied for general purposes 3,349,447

State revenue sharing 55,397

Grants and contributions not restricted to specific programs

Minimum Foundation Program 13,753,864Interest and investment earnings 349,902

Miscellaneous 148.720

Total general revenues

Changes in net assets

Net assets - beginning

Net assets - ending

21.178.908

861,271

13.728.066

14.589.337


14


BASIC FINANCIAL STATEMENTS:

FUND FINANCIAL STATEMENTS (FFS)

15


ASSETSCash and cash equivalentsInvestmentsReceivablesInterfund receivablesInventoryOther assets

TOTAL ASSETS

LIABILITIES AND FUND BALANCES

Liabilities:Accounts, salaries and other

payables

Interfund payablesUnearned revenueClaims payable

Total Liabilities

Fund Balances:Reserved for:

InventoryDebt ServiceSalaries and benefits

Unreserved:Designated for contingenciesDesignated for roofing

Unreserved - UndesignatedGeneral FundSpecial Revenue FundsCapital Projects Funds

Total Fund Balances

TOTAL LIABILITIES ANDFUND BALANCES

GOVERNMENTAL FUNDSBalance SheetJune 30, 2006

GENERAL

$ 2,029,669 $1,851,271

512,3881,901,147

0

1.637

6.296.112

1.324,43027,402

02.302

1.354.134

0

0

1,095,378

556,3120

3,290,2880

0

4.941.978

S 6.296.112 $

TITLE 1

205,6890

325,732000

531.421

60,958470,463

00

531.421

0

0

0

0

0

0

00

0

531.421

MAINTENANCE

FUND

$ 1,018,378393,689

0220.000

00

1.632.067

0220,000

00

220.000

000

0104,872

0

1,307,1950

1.412.067

$ 1.632.067


16

Statement C

SCHOOL

LUNCH

$ 256,559 $

100,000

0

27,402

26,4320

410.393

69,947

417,510

10,2950

497.752

(16,137)

00

0

0

0(71,222)

0

(87.359)

$ 410.393 $

SPECIAL

EDUCATION

256,025

0

131,978

000

388.003

38,101

349,902

0

0

388.003

0

0

0

0

0

00

0

0

388.003

OTHER

GOVERNMENTAL

$ 1,562,270 $

769,058

429,602

000

2.760.930

87,351

663,272

0

0

750.623

0

1,082,291

0

00

0(25,486)953.502

2.010.307

$ 2.760.930 $

TOTAL

5,328,590

3,114,018

1,399,700

2,148,549

26,4321.637

12.018.926

1,580,787

2,148,549

10,2952.302

3.741.933

(16,137)

1,082,291

1,095,378

556,312104,872

3,290,2881,210,487

953.502

8.276.993

12.018.926

17


18


Reconciliation of the Governmental FundsBalance Sheet to the Statement of Net Assets

June 30,2006

Statement D

Total fund balances - governmental funds $ 8,276,993

The cost of capital assets {land, buildings, furniture and equipment) purchased or constructed isreported as an expenditure in governmental funds. The Statement of Net Assets includes those

capita! assets among the assets of the School Board as a whole. The cost of those capital assets

allocated over their estimated useful lives (as depreciation expense) to the various programs

reported as governmental activities in the Statement of Activities. Because depreciation

expense does not affect financial resources, it Is not reported in governmental funds.

Costs of capital assets $ 31,471,022Depreciation expense to date (9.459.3031

22,011,719

Long-term liabilities applicable to the School Board's governmental activities are not due and

payable in the current period and accordingly are not reported as fund liabilities. Alt liabilities -both current and long term - are reported in the Statement of Net Assets.

Balances at June 30, 2006 are:

Long-term liabilities

Quality zone academy bond (259,091)

Bonds payable (14,250,000)

Claims payable (25,698)

Compensated absences payable (943.5341

(15,478,323)

Interest on long-term debt is not recognized in governmental funds until it is due and payable

(usually semi-annually), however, in the Statement of Net Assets that amount of interest

which is payable but not yet due is recognized as a current liability. (221.052>

Net Assets - Governmental Activities $ 14.589.337


19


GOVERNMENTAL FUNDSStatement of Revenues, Expenditures,

and Changes in Fund BalancesFor the Year Ended June 30,2006

REVENUESLocal sources:Taxes:

Ad valoremSates and use

interest earningsFood servicesOther

State sources:EqualizationOther

Federal sources

Total Revenues

EXPENDITURESCurrentInstruction:Regular programsSpecial programsOther instructional programs

Support services:Student servicesInstructional staff supportGeneral administrationSchool administrationBusiness servicesPlant servicesStudent transportation servicesCentral services

Food servicesCommunity service programs

Capital outlayDebt service:Principal retirementInterest and bank charges

Total Expenditures

MAINTENANCEGENERAL

$ 072,670 $3,349.447204,292

0131,050

13,693,864931,34963.581

19.346.253

8,846,6852,354,1451,218,253

688,2591,078,549473,545

1,306,848225,729

1,416,2341,102,507

10,285300,59012,16358,084

00

19.091.876

TITLE 1

0$0000

00

996.146

996.146

00

732,712

0205,24440,746

020

11.566000

5,8580

00

996.146

FUND

962,5650

41,0860

4,898

055,397

0

1.063.946

11,143

00

00

34,57053,016

0460,911104,446

000

140.485

27,2730

831.844

EXCESS (Deficiency) OF REVENUESOVER EXPENDITURES 254.377 $ 0$ 232.102

20

Statement E

SCHOOLLUNCH

$ 0 $

0

7,582197,668

0

60.000

01.019.630

1.284.880

000

00000000

1,369,97900

00

1.369.979

$ (85.099) $

SPECIALEDUCATION

0

0

000

00

622.026

622.026

0

321,8780

10,263223,569

25,215

00

38,0863,015

0

00

0

0

0

622.026

0

OTHERGOVERNMENTAL

$ 1,586,343 $0

96,942

019,306

00

833.296

2.535.887

116,55155,903

226,842

49,209

229.226

69,006

00

3,17360000

2,043,448

580,000

697.100

4.070.518

$ (1. 534.631) S

TOTAL

3,521,578

3,349,447

349,902197,668155,254

13,753,864

986,7463.534.679

25.849.138

8,974,379

2,731,9262,177,807

747,731

1,736,588643,082

1,359,864

225,7491,929,970

1,210,028

10,2851.670,569

18,0212,242,017

607,273697.100

26.982.389

f 1.1 33.251)

(CONTINUED)

21


GOVERNMENTAL FUNDSStatement of Revenues, Expenditures,


OTHER FINANCING SOURCES (USES)Transfers inTransfers out

Total Other Financing Sources (Uses)

Net Change in Fund Balances

FUND BAUVNCES - BEGINNING

FUND BALANCES - ENDING

GENERAL TITLE I

MAINTENANCE

FUND

188,359 $(56.8051

131.554

385,931

4.556.047

S 4.941.978 $

0$

_0

0

0

JL

9.5530

9.553

241,655

1.170.412

1.412.067


22

SCHOOL

LUNCH

SPECIAL

EDUCATION

OTHER

GOVERNMENTAL

Statement E

TOTAL

47,252 $0

0 $ 0 $ 245,1640 (188.359) (245.164)

47.252 0 (188.359) 0

(37,847)

(49.512)

0 (1,722,990) (1,133,251)

Q 3.733.297 9.410.244

(87.359) $ 0 $ 2.010.307 S 8.276.993

(CONCLUDED)

23


Reconciliation of the Governmental FundsStatement of Revenues, Expenditures, and Changes in Fund Balances

to the Statement of ActivitiesFor the Year Ended June 30,2006

Statement F

Total net change in fund balances - governmental funds $ (1,133,251)

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

Capital outlays are reported in governmental funds as expenditures. However, in the Statement ofActivities, the cost of those assets is allocated over their estimated useful lives as depreciation

expense. This is the amount by which capital outlays exceeds depreciation in the period:

Depreciation expense 808,979Capital outlays (2.242.0171

1,433,038

Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduceslong-term liabilities In the Statement of Net Assets. 607,273

In the Statement of Activities, scrapping of capital assets are reported as gain or loss net of thebook value.

Cost of assets scrapped 115,374Accumulated depreciation (109.190V

Net toss 6,184

(6,184)

In the Statement of Activities, certain operating expenses-compensated absences (vacations andsick leave) - are measured by the amounts earned during the year. In the governmental funds,however, expenditures for these items are measured by the amount of financial resources used

(essentially, the amounts actually paid). This year, vacation and sick time used ($1,126,238)exceeded the amounts earned $1,097,130) by $ 29,108 29,108

In the Statement of Activities, claims payable of those daims incurred but not reported are recordedon a long-term basis. En the governmental funds, however, recognize only two months of claimspayable. This year the difference of claims payable between the full and modified accrual is $21,936 (21,936)

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

interest expense Is recognized as the interest accrues, regardless of when it is due. (46.777)

Change in net assets of governmental activities $ 861.271


24


FIDUCIARY FUNDStatement of Fiduciary Assets and Liabilities

June 30,2006 Statement G

ASSETS

Cash and cash equivalents

Total assets

AGENCYFUND

$ 524.479

524.479

LIABILITIESDeposits due others

Total liabilities

524.479

$ 524.479


25

Claiborne Parish School BoardNotes to the Basic Financial Statements

Page

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 27A. REPORTING ENTITY 27B. FUNDS 27

Governmental Funds 27Fiduciary Funds 28

C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING 28Governmental Funds 28

D. CASH AND CASH EQUIVALENTS 30E. INVESTMENTS 30F. SHORT-TERM INTERFUND RECEIVABLES/PAYABLES 31G. ELIMINATION AND RECLASSIFICATIONS 31H. INVENTORY AND PREPAID ITEMS 31I. CAPITAL ASSETS 31J. DEFERRED REVENUES 32K. COMPENSATED ABSENCES 32L. RESTRICTED NET ASSETS 33M. FUND EQUITY OF FUND FINANCIAL STATEMENTS 33N. INTERFUND ACTIVITY 33O. SALES TAX 33P. BUDGETS 33Q. USE OF ESTIMATES 34

NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY 34NOTE 3-LEVIEDTAXES 35NOTE 4 - DEPOSITS AND INVESTMENTS 36NOTE 5-RECEIVABLES 37NOTE 6-CAPITALASSETS 37NOTE 7-RETIREMENTSYSTEMS 38NOTE 8-OTHER POSTEMPLOYMENT BENEFITS 39NOTE 9 - ACCOUNTS, SALARIES, AND OTHER PAYABLES 39NOTE 10 - COMPENSATED ABSENCES 39NOTE 11 - AGENCY FUND DEPOSITS DUE OTHERS 40NOTE 12-LONG-TERM LIABILITIES 40NOTE 13 - INTERFUND ASSETS/LIABILITIES (FFS LEVEL ONLY) 41NOTE 14-INTERFUND TRANSFERS (FFS LEVEL ONLY) 41NOTE 15 - LITIGATION AND CONTINGENCIES 42NOTE 16 - RISK MANAGEMENT , 42NOTE 17 - ON-BEHALF PAYMENTS FOR FRINGE BENEFITS AND SALARIES 42NOTE 18 - ECONOMIC DEPENDENCY 43NOTE 19-FINANCIAL PRESENTATION 43NOTE 20-SUBSEQUENT EVENTS 43

26

Claiborne Parish School BoardNotes to the Basic financial Statements

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying financialstatements of the Claiborne Parish School Board have been prepared in conformity with accounting principlesgenerally accepted in the United States of America (GAAP) as applied to governmental units. TheGovernmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishinggovernmental accounting and financial reporting principles.

A, REPORTING ENTITY The Claiborne Parish School Board was created by Louisiana Revised Statute(LSA-R.S.) 17:51 to provide public education for the children within Claiborne Parish. The School Board isauthorized by LSA-R.S. 17:81 to establish policies and regulations for its own government consistent with thelaws of the State of Louisiana and the regulations of the Louisiana Board of Elementary and SecondaryEducation. The School Board is comprised of ten members who are elected for four years.

The School Board operates eight schools within the parish with a total enrollment of 2,763 pupils for the yearended June 30,2006. In conjunction with the regular educational programs, some of these schools offer specialeducation and/or adult education programs. In addition, the School Board provides transportation and schoolfood services for the students.

GASB Statement No. 14 established criteria for determining the governmental reporting entity and componentunits that should be included within the reporting entity. Because the School Board has a separately electedgoverning body and is legally separate and fiscally independent, the School Board is a separate governmentalreporting entity. The School Board includes all funds, activities, et cetera, that are within the oversightresponsibility of the School Board.

Certain units of local government over which the School Board exercises no oversight responsibility, such as theparish police jury and municipalities within the parish, are excluded from the accompanying financialstatements. TTiese units of government are considered separate reporting entities and issue financial statementsseparate from those of the School Board.

B. FUNDS The accounts of the School Board are organized and operated on the basis of fluids. A fund is aseparate accounting entity with a self-balancing set of accounts. Fund accounting is designed to demonstratelegal compliance and to aid financial management by segregating transactions relating to certain governmentfunctions or activities.

Funds of the School Board are classified into two categories: governmental and fiduciary. In turn, eachcategory is divided into separate fund types. The fund classifications and a description of each existing fundtype follow:

Governmental Funds Governmental funds account for all or most of the School Board's general activities,including the collection and disbursement of specific or legally restricted monies, the acquisition or constructionof capital assets, and the servicing of long-term debt. The School Board reports the following majorgovernmental funds:

General fund - The general operating fund of the School Board accounts for all financial resources, exceptthose required to be accounted for in other funds.

Title I fund - This fund accounts for federal funds received for the Title I federal program.

Maintenance Fund - The maintenance fund accounts for the proceeds of ad valorem taxes levied tomaintain and improve school facilities in the parish.

27


School Lunch Fimd - This program assists school boards through cash grants and food donations in providing anutritious breakfast and lunch service for school students and encourages the domestic consumption of nutritiousagricultural commodities.

Special Education - This program was designed to provide grants to states to assist them in providing a freeappropriate public education to all children with exceptionalities.

Fiduciary Funds - account for assets held on behalf of outside parties, including other governments, or onbehalf of other funds within the School Board. Fiduciary funds include:

School activities agency fund - accounts for assets held by the School Board as an agent for the individualschools and school organizations.

Sales tax agency fund - accounts for monies collected on behalf of other taxing authorities in ClaiborneParish,

Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results ofoperations.

C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING

Government-Wide Financial Statements (GWFS) The Statement of Net Assets and the Statement ofActivities displays information about the reporting government as a whole. Fiduciary funds are not included inthe GWFS. Fiduciary funds are reported only in the Statement of Fiduciary Assets and Liabilities at the fundfinancial statement level.

The Statement of Net Assets and the Statement of Activities was prepared using the economic resourcesmeasurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses, assets and liabilitiesresulting from exchange and exchange-like transactions are recognized when the exchange takes place.Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognizedin accordance with the requirements of GASB Statement No. 33 "Accounting and Financial Reporting forNonexchange Transactions."

Program revenues Program revenues include 1) charges for services provided, 2) operating grants andcontributions, and 3) capital grants and contributions; program revenues reduce the cost of the function to befinanced from the School Board's general revenues. Charges for services are primarily derived from cafeteriasales. Operating grants and contributions consist of the many educational grants received from the federal andstate government.

Allocation of indirect expenses The School Board reports all direct expenses by function in the Statement ofActivities. Direct expenses are those that are clearly identifiable with a function. Depreciation expense isspecifically identified by function and is included in the direct expense of each function. Interest on generallong-term debt is considered an indirect expense and is reported separately in the Statement of Activities.

Fund Financial Statements (FFS)

Governmental Funds The accounting and financial reporting treatment applied to a fund is determined by hsmeasurement focus. Governmental fund types use the flow of current financial resources measurement focusand the modified accrual basis of accounting. Under the modified accrual basis of accounting revenues are

28


recognized when susceptible to accrual (i.e., when they are "measurable and available"), "Measurable" meansthe amount of the transaction can be determined and "available" means collectible within the current period orsoon enough thereafter to pay liabilities of the current period. The government considers all revenues availableif they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability isincurred, except for unmatured interest on general long-term debt which is recognized when due, and certaincompensated absences and claims and judgments which are recognized when the obligations are expected to beliquidated with expendable available financial resources.

With this measurement focus, only current assets and current liabilities are generally included on the balancesheet. Operating statements of these funds present increases and decreases in net current assets. Thegovernmental funds use the following practices in recording revenues and expenditures:

Revenues

Federal and state entitlements which include state equalization and state revenue sharing are recordedas unrestricted grants-in-aid when available and measurable. Federal and state restricted grants arerecorded when the reimbursable expenditures have been incurred.

Ad valorem taxes are recognized when all applicable eligibility requirements are met and the resourcesare available.

Sales taxes are recognized when the underlying exchange takes place and the resources are available.

Interest income on time deposits and investments is recorded when the interest becomes measurableand available to finance expenditures of the fiscal period.

Expenditures Expenditures are generally recognized under the modified accrual basis of accounting whenthe related fund liability is incurred.

Salaries are recorded as paid. Salaries for nine-month employees are paid over twelve months andaccrued at June 30.

Principal and interest on general long-term debt is recognized when due.

Inventory items are expensed as purchased except for inventory of the school lunch fund which isexpensed as consumed.

Compensated absences are recognized as expenditures when leave is actually taken or upontermination of employment due to retirement or death.

Other Financing Sources (Uses) Transfers between funds that are not expected to be repaid (or othertypes, such as sale of fixed assets, debt extinguishments, and long-term debt proceeds) are accounted for asother financing sources (uses). These other financing sources (uses) are recognized at the time theunderlying events occur.

Fiduciary Funds the agency fund is custodial in nature and does not present results of operations or have ameasurement focus. Agency funds are accounted for using the accrual basis of accounting.

29


D. CASH AND CASH EQUIVALENTS Cash includes amounts in demand deposits, interest-bearingdemand deposits, and money market accounts. Cash equivalents include amounts in time deposits and thoseinvestments with original maturities of 90 days or less. Under state law, the School Board may deposit funds indemand deposits, interest-bearing demand deposits, money market accounts, or time deposits with state banksorganized under Louisiana law and national banks having their principal offices in Louisiana.

Under state law, the School Board may invest in United States bonds, treasury notes, or certificates. These areclassified as investments if their original maturities exceed 90 days; however, if the original maturities are 90days or less they are classified as cash equivalents and are stated at cost.

E. INVESTMENTS Investments are limited by R.S. 33:2955 and the School Board's investment policy. Ifthe original maturities of investments exceed 90 days, they are classified as investments; however, if the originalmaturities are 90 days or less, they are classified as cash equivalents.

The investments are reflected at fair value except for the following which are required/permitted as per GASBStatement No. 31:

1. Investments in nonparticipatins interest-earning contracts, such as nonnegotiable certificates of depositwith redemption terms that do not consider market rates, are reported using a cost-based measure.

2. The School Board reported at amortized cost money market investments and participating interest-earning investment contracts that have a remaining maturity at time of purchase of one year or less.

Definitions:

Interest-earning investment contracts include time deposits with financial institutions (such as certificates ofdeposit), repurchase agreements, and guaranteed investment contracts.

Money market investments are short-term, highly liquid debt instruments that include U. S. Treasuryobligations. The School Board participates in the Louisiana Asset Management Pool, Inc. (LAMP) which isan external investment pool that is not SEC-registered, Because the LAMP is an arrangement sponsored bya type of governmental entity, it is exempt by statute from regulation by the SEC.

The investment objective of the LAMP is the preservation of capital and the maintenance of liquidity and, to theextent consistent with such objective, current yield.

The LAMP was established as a cooperative endeavor to enable public entities of the state of Louisiana toaggregate funds for investment This pooling is intended to improve administrative efficiency and increaseinvestment yield The Board of Directors of LAMP provides certain management and administrative services toLAMP and, through a competitive bidding process, selects a custodial bank and an investment adviser. Thecustodial bank holds the assets of LAMP and the investment decisions are made by the investment advisor.Both the custodial bank and the investment advisor are subject to the review and oversight of LAMP.

An annual audit of LAMP is conducted by an independent certified public accountant. The Legislative Auditorof the state of Louisiana has full access to the records of the LAMP.

The LAMP may invest in U. S. Government Securities and is designed to comply with restriction oninvestments by municipalities, parishes, and other types of political subdivisions imposed under LouisianaRevised Statute 33:2955.

30


The LAMP seeks to maintain a stable net asset value of $1.00 per unit, but there can be no assurance that theLAMP will be able to achieve this objective. The LAMP'S portfolio securities are valued at fair value. TheLAMP operates in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940, asamended, which governs money market funds (although the LAMP is not a money market fund and has noobligation to conform to this rule.) In addition, the LAMP will generally comply with other aspects of that rule,including the requirements that all portfolio securities acquired by the LAMP must have, at the time of purchase,a maximum remaining maturity of 397 days and meet certain additional quality standards and that the LAMPmaintain a dollar-weighted average portfolio maturity of not more than 90 days.

The fair value of the position in the pool is the same as the value of the pool shares.

LAMP issues financial reports which can be obtained by writing: LAMP, Inc., 228 St. Charles Avenue, Suite1123, New Orleans, LA 70130.

F. SHORT-TERM INTERFUND RECEIVABLES/PAYABLES During the course of operations,numerous transactions occur between individual funds for goods provided or services rendered. Thesereceivables and payables are classified as due from other funds or due to other funds on the balance sheet.Short-term interfund loans are classified as interfund receivables/payables.

G. ELIMINATION AND RECLASSIFICATIONS In the process of aggregating data for the statement ofnet assets and the statement of activities, some amounts reported as interfund activity and balances in the fundswere eliminated or reclassified. Interfund receivables and payables were eliminated to minimize the "grossingup" effect on assets and liabilities within the governmental activities column.

H. INVENTORY AND PREPAID ITEMS Inventory items are expensed as purchased except for inventoryof the school food service fund.

Inventory of the school food service special revenue fund consists of food purchased by the School Board andcommodities granted by the United States Department of Agriculture through the Louisiana Department ofAgriculture and Forestry. The commodities are recorded as revenues when received; however, all inventoryitems are recorded as expenditures when consumed. All purchased inventory items are valued at the lower ofcost (first-in, first-out) or market, and commodities are assigned values based on information provided by theUnited States Department of Agriculture.

Certain payments to vendors reflect cost applicable to future accounting periods and are reported as prepaiditems.

L CAPITAL ASSETS Capital assets are recorded at historical cost or estimated historical cost if purchasedor constructed and depreciated over their estimated useful lives (including salvage value). The capitalizationthreshold is $1,000. Donated capital assets are recorded at their estimated fair value at the date of donation.Estimated useful life is management's estimate of how long the asset is expected to meet service demands.

31


Straight line depreciation is used based on the following estimated useful lives:

Description Estimated Lives

Buildings and building improvements 20-40 yearsFurniture and fixtures 5-10 yearsVehicles 5-15 yearsEquipment 5-20 years

Interest during construction is not capitalized on capita] assets.

J. DEFERRED REVENUES Deferred revenues arise when resources are received by the School Boardbefore it has a legal claim to them, as when grant monies are received prior to the occurrence of qualifyingexpenditures. In subsequent periods, when the School Board has a legal claim to the resources, the liability fordeferred revenue is removed and the revenue is recognized.

K. COMPENSATED ABSENCES All 12-inonth employees earn ten days of vacation leave each year.Vacation leave cannot be accumulated. Upon separation of employment, all unused vacation leave is forfeited.

All School Board employees earn from ten to eighteen days of sick leave each year, depending upon the lengthof service. Sick leave can be accumulated without limitation. Upon retirement or death, unused accumulatedsick leave of up to twenty-five days is paid to the employee or to the employee's estate at the employee's currentrate of pay. Under the Louisiana Teachers' Retirement System, and the Louisiana School Employees1

Retirement System, all unpaid sick leave is used in the retirement benefit computation as earned service.

The School Board's recognition and measurement criteria for compensated absences follow:

GASB Statement 16 provides that vacation leave and other compensated absences with similar characteristicsshould be accrued as a liability as the benefits are earned by the employees if both of the following conditionsare met:

A. The employees' rights to receive compensation are attributable to services already rendered.B. It is probable that the employer will compensate the employees for the benefits through paid time off

or some other means, such as cash payments at termination or retirement.

GASB Statement 16 provides that a liability for sick leave should be accrued using one of the followingtermination approaches:

A. An accrual for earned sick leave should be made only to the extent it is probable that the benefits willresult in termination payments, rather than be taken as absences due to illness or other contingencies,such as medical appointments and funerals.

B. Alternatively, a governmental entity should estimate its accrued sick leave liability based on the sickleave accumulated at the balance sheet date by those employees who currently are eligible to receivetermination payments as well as other employees who are expected to become eligible in the future toreceive such payments. The School Board uses this approach to accrue the liability for sick leave.

32


L. RESTRICTED NET ASSETS For the government-wide statement of net assets, net assets are reportedas restricted when constraints placed on net asset use are either;

Externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of othergovernments; Imposed by law through constitutional provisions or enabling legislation.

When both restricted and unrestricted resources are available for use, it is the government's policy to userestricted resources first, then unrestricted resources as they are needed. Restricted net assets reported in theStatement of Net Assets are restricted through enabling legislation.

M, FUND EQUITY OF FUND FINANCIAL STATEMENTS

Reserves Reserves represent those portions of fund equity legally segregated for a specific future use and notappropriable for expenditures.

Designated Fund Balances Designated fund balances represent tentative plans for future use of financialresources.

N. INTERFUND ACTIVITY Interfund activity is reported as either loans, services provided,reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and aresubject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, aretreated as revenues and expenditures/expenses. Reimbursements are when one fond incurs a cost, charges theappropriate benefiting fund and reduces its related cost as a reimbursement. AH other interfund transactions aretreated as transfers. Transfers between governmental funds are netted as part of the reconciliation to thegovernment-wide financial statements.

O. SALES TAX On January 21, 1978 the voters of Claiborne Parish approved the assessment of a onepercent sales tax. The net revenues from the tax, which may be used for any school purpose, are used tosupplement salaries and related benefits of school board employees. The tax is collected by the School Boardand has no expiration date.

Claiborne Parish voters, on September 21, 1996 approved the assessment of a one percent sales tax, to beeffective January 1,1997. Net revenues from the tax are dedicated fifty percent to provide a source of fundingfor salaries and benefits for the employees of the school board and fifty percent for the general fund. The tax iscollected by the School Board and is for a period of five years.

P. BUDGETS

General Budget Practices The School Board follows these procedures in establishing the budgetary datareflected in the combined financial statements:

State statute requires budgets to be adopted for the general fund and all special revenue funds.

Each year prior to September, the Superintendent submits to the Board proposed annual budgets for the generalfund and special revenue funds. Public hearings are conducted, prior to the Board's approval, to obtain taxpayercomments. The operating budgets include proposed expenditures and the means of financing them.

Appropriations (unexpended budget balances) lapse at year-end.

33


Formal budget integration (within the accounting records) is employed as a management control device. AHbudgets are controlled at the function level. Budget amounts included in the accompanying financial statementsinclude the original adopted budget and all subsequent amendments. These revisions were consideredinsignificant by the Board.

Encumbrances Encumbrance accounting, under which purchase orders are recorded in order to reserve thatportion of the applicable appropriation, is not employed. However, outstanding purchase orders are taken intoconsideration before expenditures are incurred in order to assure that applicable appropriations are not exceeded.

Budget Basis of Accounting The major governmental funds' budgets are prepared on the modified accrualbasis of accounting, a basis consistent with accounting principles generally accepted in the United States ofAmerica (GAAP). Budgeted amounts are originally adopted or amended by the Board. Legally, the Board mustadopt a balanced budget; that is, total budgeted revenues and other financing sources including fund balancemust equal or exceed total budgeted expenditures and other financing uses. State statutes require the Board toamend its budgets when revenues plus projected revenues within a fund are expected to be less than budgetedrevenues by five percent or more and/or expenditures within a fund are expected to exceed budgetedexpenditures by five percent or more. The School Board approves budgets at the function level and managementcan transfer amounts between line items within a function.

Q. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principlesgenerally accepted in the United States of America requires management to make estimates and assumptionsthat affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at thedate of the financial statement and the reported amounts of revenues and expenditures during the reportingperiod. Actual results could differ from those estimates.

NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

A. Excess of Expenditures Over Appropriations in individual Funds The following individual fundshad actual expenditures over budgeted expenditures for the year ended June 30,2006:

UnfavorableFund Budget Actual VarianceGeneral Fund $ 18,280,758 $ 19,148,681 $867,923

School Lunch 1,317,905 1,369,979 52,074

Actual expenditures exceeded appropriations as a result of unanticipated expenditures occurring in the month ofJune after the last budget revision.

B. Deficit Fund Balances The following fund has a deficit in the fund balance at June 30,2006:Deficit

Fund AmountSchool Lunch $87,359Starting Points 43,763

Management expects to correct these deficits by reducing expenditures.

34


NOTE 3 - LEVIED TAXES The School Board levies taxes on real and business personal property locatedwithin Claiborne Parish's boundaries. Property taxes are levied by the School Board on property values assessedby the Claiborne Parish Tax Assessor and approved by the State of Louisiana Tax Commission.

The Claiborne Parish Sheriffs Office bills and collects property taxes for the School Board. Collections areremitted to the School Board monthly.

Property Tax Calendar

July 14,2005January 1,2005On or about November 15,2005December 31,2005January 01, 2006

Millage rates adoptedLevy dateTax bills mailed

Due dateLien date

Assessed values are established by the Claiborne Parish Tax Assessor each year on a uniform basis at thefollowing ratios of assessed value to fair market value:

10% land15% machinery10% residential improvements

15% industrial improvements15% commercial improvements25% public service properties, excluding land

A revaluation of all property is required after 1978 to be completed no less than every four years. The lastrevaluation was completed for the tax roll of January 1,2005. Total assessed value was $76,210,680 in calendaryear 2005. Louisiana state law exempts the first $7,500 of assessed value of a taxpayer's primary residencefrom parish property taxes. This homestead exemption was $17,880,566 of the assessed value in calendar year2005.

State law requires the sheriff to collect property taxes in the calendar year in which the assessment is made.Property taxes become delinquent January 1 of the following year. If taxes are not paid by the due date, taxesbear interest at the rate of 1.25% per month until the taxes are paid. After notice is given to the delinquenttaxpayers, the sheriff is required by the Constitution of the State of Louisiana to sell the least quantity ofproperty necessary to settle the taxes and interest owed.

All property taxes are recorded in the general, special revenue maintenance fund and sinking fund. Revenues insuch funds are recognized in the accounting period in which an enforceable legal claim arises. Estimateduncollectible taxes are those taxes based on past experience which will not be collected in the subsequent yearand are primarily due to subsequent adjustments to the tax roll. The School Board uses the lien date to establishthe enforceable legal claim date. No receivable has been recorded for 2006 property taxes because the lien dateis subsequent to year end.

The tax roll is prepared by the parish tax assessor in November of each year. The collection of the 2005property taxes occurs in December, and January and February of the next year. As a result, no property taxesreceivable for 2005 taxes is included on the accompanying balance sheet because none is available within 60days of the School Board's year-end.

Historically, virtually all ad valorem taxes receivable are collected since they are secured by property.Therefore, there is no allowance for uncollectible taxes.

35

Claibome Parish School BoardNotes to the Basic Financial Statements

The following is a summary of authorized and levied (tax rate per $ 1,000 Assessed Value) ad valorem taxes:

Authorized LeviedMillage Millage Expiration Date

Parish-wide taxes:Constitutional 5.00 6.07 IndefiniteMaintenance 5.44 5.9 2016Maintenance 5.44 5.9 2016

District TaxesSpecial revenue funds:

District No.l 4.25 4.04 2012DistrictNo.il 3.60 4.14 2006DistrictNo. 13 12.66 12.59 2012District No. 16 4.00 4.73 2009District No. 26 10.00 10.73 2011

Debt Service fundsDistrict No. 11 Variable 31.50 2016DistrictNo. 13 Variable 35.42 2007

NOTE 4 - DEPOSITS AND INVESTMENTS At June 30, 2006, the School Board had the followinginvestments;

Investment type Maturities Fair ValueLouisiana Asset

Management Pool (LAMP) Less than 1 year $2,914,018

Interest Rate Risk: The School Boards' policy does not address interest rate risk.

Credit Risk: The School Board invests in certificates of deposit, which do not have credit ratings. The SchoolBoard's investment in LAMP was rated AAAM by Standard & Poor's. The School Boards' policy does notaddress credit rate risk.

Custodial Credit Risk-Deposits: At year-end, the School Board's carrying amount of deposits was $6,053,069(including $265,758 in certificate of deposits) and the bank balance was $7,176,846. These deposits arereported as follows: Statement A- cash and cash equivalents, $5,328,590, Statement A-investments, $200,000,Statement G-cash and cash equivalents $524,479. Of the bank balance,- $423,730 was covered by federaldepository insurance or by collateral held by the School Board's agent in the School Board's name (GASBCategory 1). The remaining bank balance of $6,753,116 was collateralized with securities held by the pledgingfinancial institution's trust department or agent but not in the School Board's name (GASB Category 3). Eventhough the pledged securities are considered uncollateralized (Category 3) under the provision of GASBStatement No. 3, Louisiana Revised Statute 39:1229 imposes a statutory requirement on die custodial bank toadvertise and sell the pledged securities within 10 days of being notified by the School Board that the fiscalagent has failed to pay deposited funds upon demand. The School Board's policy does not address custodialcredit risk.

36


NOTE 5 - RECEIVABLES The balance of receivables at June 30, 2006, is shown below. The School Boardexpects to collect the full amount; therefore, no allowance for doubtful accounts has been established.

Intergovernmental - grants:FederalState

Local sources:Sales tax

Total

NOTE 6 - CAPITAL ASSETSfollows:

Governmental activitiesLandConstruction in progressExhaustible capital assets

BuildingsFurniture and equipment

TotalLess accumulated depreciation

BuildingsFurniture and equipment

TotalGovernmental activities

Capital assets, net

General Title I

$ 0 $ 325,732200,808 0

311,580 0$ 512,388 $ 325,732

TS Capital asset balances

BalanceBeginning

$ 357,279 $0

25,246,0093,741,091

29,344,379

6,299,5962,459,9188,759,514

$ 20,584.865 $

Special OtherEducation Governmental TOTAL

$ 131,978 $0

0$ 131,978 $

and activity for the

Additions

139,000 $1,903,260

1,903,260199,757

4,145,277

561,621247,358808,979

3,336,298 $

429,602 $

0429,602 $ 1,

year ended June

Deletions

01,903,260

23,83691,538

2,018,634

19,91189,279

109,190

1,909,444

887,312200,808

311,580399,700

30, 2006 is as

Balance Ending

$ 496,2790

27,125,4333,849,310

31,471,022

6,841,3062,617,9979,459,303

$ 22.011.719

Depreciation expense was charged to governmental activities as follows:

Regular programsSpecial programsVocational educatins programsOther instructional programsAdult education programsStudent servicesInstructional staff supportSchool administationBusiness servicesPlant servicesStudent transportation servicesFood services

Total depreciation expense

554,03012,03816,70811,6895,202

87516,9892,1735,819

63,90697,29022,260

808,979

37


NOTE 7 - RETIREMENT SYSTEMS

Plan description Substantially all School Board employees participate in either the Teachers' RetirementSystem or the School Employees' Retirement System (the Systems), which are cost-sharing, multiple-employerpublic employee retirement systems (PERS). Benefit provisions are ultimately approved and amended by theLouisiana Legislature.

Participation in the Teachers' Retirement System is divided into two plans - the Teachers' Regular Plan and theTeachers' Plan A. In general, professional employees (such as teachers and principals) and lunchroom workersare members of the Louisiana Teachers1 Retirement System (TRS); other employees, such as custodial personneland bus drivers, are members of the Louisiana School Employees' Retirement System (LSERS). Generally, allfull-time employees are eligible to participate in the system.

With respect to the Teachers' Retirement System Regular Plan, normal retirement is at age 60 with ten years ofservice, or at any age with 20 years of service. The formula for annual maximum retirement benefits isgenerally two percent (with less than 25 years of service) or 2.5 percent (with 25 or more years of service) timesthe years of creditable service times the average salary of the 36 highest successive months (plus $300applicable to persons becoming members prior to July 1,1986).

Under the Teachers' Retirement System Plan A, normal retirement is generally at any age with 30 or more yearsof creditable service, at age 55 with at least 25 years of creditable service and at age 60 with at least ten years ofcreditable service. The retirement benefit formula is generally three percent times the years of creditable servicetimes the average salary of the 36 highest successive months plus $24 per year of service.

Employees participating in the School Employees' Retirement System are eligible for normal retirement after30 years of service, or after 25 years of service at age 55 or after ten years of service at age 60. The maximumretirement allowance is computed at 2.5 percent times the highest 36 months of average salary, times the yearsof service plus a supplement of $2,00 per month times the years of service.

Both TRS and LSERS issue annual financial reports. The reports can be obtained by telephoning or writing tothe following:

Teachers1 Retirement System of Louisiana Louisiana School Employees' Retirement SystemPost Office Box 94123 Post Office Box 44516Baton Rouge, Louisiana 70804-9123 Baton Rouge, Louisiana 70804(225) 925-6446 (225) 925-6484

Funding Policy Each system is administered and controlled at the state level by a separate board of trustees,with contribution rates approved and amended by the Louisiana Legislature. Benefits of the systems are fundedby employee and employer contributions. Benefits granted by the retirement systems are guaranteed by the stateof Louisiana under provisions of the Louisiana Constitution of 1974. The School Board's employer contributionfor the TRS, as provided by state law, is funded by deductions from local ad valorem taxes, and by remittancesfrom the School Board. For the LSERS, the School Board's employer contribution is funded through annualappropriations.

In addition, the employer does not remit to the Teachers' Retirement System, Regular Plan or Plan A, theemployer's contribution for the professional improvement program (PIP) portion of payroll. The PIPcontribution is made directly to the Retirement System by the state of Louisiana.

38


Contribution rates (as a percentage of covered salaries) for active plan members as established by the LouisianaLegislature for the year ended June 30,2006, are as follows:

Louisiana Teachers1 Retirement System:RegularPlan A

Louisiana School Employees' Retirement System

Employee Employer

8.00%9.10%7.50%

15.90%15.90%18.40%

Total covered payroll of the School Board for TRS - Regular Plan, TRS - Plan A, and LSERS for the year endedJune 30, 2006, amounted to $12,219,802, $40,786 and $945,877, respectively. Employer contributions for theyear ended June 30,2006 and June 30,2005 are as follows:

.TRS

AnnualActuarially

RequiredContribution

$2,178,4742,173,161

Percentageof AnnualRequired

ContributionPaid

87.03%89.24%

AnnualActuarially

RequiredContribution

$177,310166,214

Percentageof AnnualRequired

ContributionPaid

81.39%104.57%

Fiscal Year EndedJune 30,2005June 30,2006

Annual actuarially required contributions for each plan above is based on the plan's annual financial report forthat year except for the year ended June 30, 2006. Each annual actuarially required contribution for die yearended June 30,2006, is based upon each plan's annual financial report for the year ended June 30, 2005, whichis the latest information available.

NOTE 8 - OTHER POSTEMPLOYMENT BENEFITS The School Board provides certain continuing healthcare and life insurance benefits for its retired employees. Substantially all of the School Board's employeesbecome eligible for these benefits if they reach normal retirement age while working for the School Board.These benefits for retirees and similar benefits for active employees are provided through the State EmployeesGroup Insurance Program. The cost of retiree benefits for the year totaled $864,521 for 163 retirees.

The cost of benefits for current employees is paid jointly by the employee and the School Board. The SchoolBoard's portion of the cost is recognized as an expenditure when the monthly premiums are due.

NOTE 9 - ACCOUNTS, SALARIES, AND OTHER PAYABLES Payables at year-end are as follows:

SalariesAccounts

Total

$

A.

General1,314,630

9,8001,324,430

SchoolTitle I Lunch

$

$

60,115 $843

60,958 $

69,9470

69,947

Special OtherEducation Governmental

$

$

38,101 $0

38,101 $

31,02156,33087,351

$

$

TOTAL1,513,814

66,9731,580,787

NOTE 10 - COMPENSATED ABSENCES At June 30, 2006, employees of the School Board haveaccumulated and vested $943,534 of employee leave benefits, including $13,681 of salary-related benefits.These employee leave benefits are computed hi accordance with GASB Codification Section C60.

39


NOTE 11 - AGENCY FUND DEPOSITS DUE OTHERS A summary of changes in agency fund depositsdue others for the year follows:

Balance, Balance,Beginning Additions Reductions Ending

Agency funds:Sales tax fund $ 0 $ 5,797,212 $ 5,797,212 $ 0School activities fund 459,276 985,102 919,899 524,479

Total $ 459,276 $ 6,782,314 $ 6,717,111 $ 524,479

NOTE 12 - LONG-TERM LIABILITIES The following is a summary of the long-term obligationtransactions for the year:

Governmental ActivitiesBonds Payable:

Qualified zone academy bondGeneral obligation bonds

Claims PayableCompensated absencesGovernmental Activities

Long-term liabilities

BeginningBalance

$ 286,36414,830,000

6,064972,642

$16,095,070

Additions

$ 00

60,4741,097,130

$ 1,157,604

Deletions

$ 27,273580,00038,538

1,126,238

$ 1,772,049

Ending balance

$ 259,09114,250,000

28,000943,534

$ 15,480,625

Amounts DueWithin One

Year

$ 27,273615,00028,000

1,126,238

$ 1,796,511

Payments on the general obligation bonds payable that pertain to the School Board's governmental activities aremade by debt service funds. The compensated absences liability attributable to the governmental activities willbe liquidated by several of the School Board's governmental funds.

District 11District 13Total generalobligation bonds

Original FinalIssue Date Issue Interest Rate Payment Due

6/01/01 $8,100,000 4.45 - 7.00 20219/01/02 8,400,000 3.75 - 6.50 2022

Interest toMaturity

$3,047,2153,146.138

PrincipalOutstanding$ 6,920,000

7.330.000

$6.193.353 $14.250.000

In February 2002, the School Board received $375,000 from Qualified Zone Academy Bonds. The QualifiedZone Academy Bond Program is a federal program offered to school districts to acquire interest-free debt forselected projects. The federal government covers all the interest on the bonds.

40


All principal and interest requirements are funded in accordance with Louisiana law by the annual ad valoremtax levy on taxable property within the parish. At June 30,2006, the School Board has accumulated $1,082,291in the debt service funds for future debt requirements. The notes and bonds are due as follows:

Qualified ZoneAcademy Bond

$

$

PrincipalPayments

27,27327,27327,27327,27327,273

122,726--

259,091Si.!!'.',1.!.1.1 ...I.-...-- ;..,..

General Obligation BondsPrincipalPayments

$ 615,000645,000685,000720,000755,000

4,430,0005,750,000

650,000$ 14,250,000

InterestPayments

$ 663,155634,145599,070569,970535,770

2,146,2481,014,120

30,875$ 6,193,353. i-j i— 1-1

Total$ 1,305,428

1,306,4181,311,3431,317,2431,318,0436,698,9746,764,120

680,875$ 20,702,444

Year Ending June 30,200720082009201020112012-20162017-20212022

Total

In accordance with Louisiana Revised Statute 39:562, the School Board is legally restricted from incurringlong-term bonded debt in excess of 50 percent of the assessed value of taxable property. At June 30,2006, thestatutory limit was $38,105,340 and outstanding net bonded debt totaled $13,167,709.

Long term debt is paid by the debt service funds. The compensated absences liability attributable to thegovernmental activities will be liquidated 100% by the general fund.

NOTE 13 - INTERFUND ASSETS (FFS LEVEL ONLY)Interfund Receivable/Payable:

Receivable Fund Payable Fund AmountGeneral Fund Special Education $ 349,902General Fund School Lunch 417,510General Fund Other Governmental 663,272General Fund Title 1 470,463Other Governmental General Fund 27,402Maintenance Funds Maintenance Funds 220,000

Total $ 2,148,549

The purpose of the interfund assets/liabilities was to cover current-year expenditures on cost reimbursementprograms until the reimbursement requests are received.

NOTE 14 - INTERFUND TRANFERS (FFS LEVEL ONLY)

Fund Transfer In Transfer OutGeneral Fund $ 188,359 $ 56,805Maintenance Fund 9,553Lunch Fund 47,252Other governmental 188,359

Total $ 245,164 $ 245,164

41


The purpose of interfund transfers was due mainly to the school food service as a result of the food service'sexpenditures exceeding the current-year revenues, and from the Hurricane Relief fund to the General Fund forgrant revenues from Hurricane Katrina and Hurricane Rita.

NOTE 15 - LITIGATION AND CONTINGENCIES

Litigation At June 30, 2006, the School Board was involved in various litigations. It is the opinion of legalcounsel for the School Board that ultimate resolution of these lawsuits would not materially affect the financialstatements.

Grant Disallowances The School Board participates in a number of state and federally assisted grant programs.The programs are subject to compliance audits under the single audit approach. Such audits could lead torequests for reimbursement by the grantor agency for expenditures disallowed under terms of the grants. SchoolBoard management believes that the amount of disallowances, if any, which may arise from future audits willnot be material.

Tax Arbitrage Rebate Under the Tax Reform Act of 1986, interest earned on the debt proceeds in excess ofinterest expense prior to the disbursement of the proceeds must be rebated to the Internal Revenue Service(IRS). Management believes there is no tax arbitrage rebate liability at year end.

NOTE 16 - RISK MANAGEMENT The School Board is exposed to various risks of loss related to torts; theftof, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Arisk management program for workers' compensation was established by the School Board several years ago.The general fund pays claims, claim reserves and administrative costs of the program. The School Board hascontracted with a third parry administrator to handle all workers' compensation claims.

Changes in the claims amount for the two years ended June 30,2006 were as follows:

Beginning ofFiscal Year

Liability$ 2,075

6,064

Claims andChanges inEstimates

$ 55,21160,474

Benefit Paymentand Claims

$ 51,22238,538

Ending of FiscalYear Liability

$ 6,06428,000

Years Ended June 30.2004-20052005-2006

Claims payable of $28,000 as of June 30, 2006, has been accrued as a liability. The liability at June 30, 2006,was provided by the third-party administrator. The liability does not include incremental costs.

The School Board continues to carry commercial insurance for all other risks of loss. Settled claims resultingfrom these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

NOTE 17 - ON-BEHALF PAYMENTS FOR FRINGE BENEFITS AND SALARIES On-behalf paymentsfor fringe benefits and salaries are direct payments made by an entity (the paying agent) to a third-party recipientfor the employees of another, legally separate entity (the employer entity). GASB Statement No. 24 requiresemployer governments to recognize revenue and expenditures or expenses for these on-behalf payments.

The state of Louisiana made pension contributions (regarding Professional Improvement Program) directly tothe Teachers' Retirement System of Louisiana on behalf of the School Board in the amount of $9,953. Thisamount was recognized as state revenue with a corresponding expenditure in the applicable fund from which thesalary was paid.

42

Claibome Parish School BoardNotes to the Basic Financial Statements

NOTE 18 - ECONOMIC DEPENDENCY Statement of Financial Accounting Standard (SFAS) No. 14requires disclosure in financial statements of a situation where one entity provides more than 10% of the auditedentity's revenues. The Minimum Foundation Funding provided by the state to all public school systems inLouisiana is primarily based on October 1 student count The state provided $13,753,864 to the School Board,which represents approximately 53% of the School Board's total revenue for the year.

NOTE 19 - FINANCIAL PRESENTATION Major funds reflected in this report are the General Fund, Title I,Maintenance Funds, School Lunch, and Special Education. Last year the General Fund, Title I, MaintenanceFunds, and Capital Projects Fund-District 13 were the major funds.

The Governmental Accounting Standards Board Statement No. 34, commonly referred to as the New ReportingModel established a criteria determining which funds are the most prominent funds of a government. Theseprominent funds are required to be separately displayed in the basic financial statements. The computation ofthe major fund is made annual. Accordingly, the display of specific major funds in the basic financial statementschanges frequently.

NOTE 20 - SUBSEQUENT EVENTS The School Board issued Qualified Zone Academy Bonds (QZAB) inSeptember, 2006 in the amount of $1,635,000. Also, the School Board purchased eight school buses for$438,656 after year end.

43


REQUIRED SUPPLEMENTAL INFORMATION

44


Budgetary Comparison Schedules

General Fund and Major Special Revenue Funds With Legally Adopted Annual Budgets

GENERAL FUND The general fund accounts for all activities of the School Board except those that areaccounted for in other funds.

TITLE I Title I improves the educational opportunities of educationally deprived children by helping themsucceed in the regular school program, attain grade level proficiency and improve achievement in basic andmore advanced skills. It is designed primarily to provide instructional activities to educationally deprivedchildren that reside in low-income areas who have been selected on the basis of a needs assessment. Theseservices supplement, not supplant, those normally provided by state and local educational agencies.

MAINTENANCE FUNDS The maintenance funds account for the proceeds of ad valorem taxes levied tomaintain and improve school facilities in the parish. The Parish wide Maintenance Fund is financed by a Parishwide ad valorem tax levy to provide additional support to operate and maintain all school facilities in the parish.Districts No. 11, No. 13, No. 16 and No. 26, Maintenance Funds are financed by an ad valorem tax levy for eachdistrict, which provides additional funds to operate and maintain school facilities in the respective districts.

SCHOOL LUNCH This program assists school boards through cash grants and food donations in providing anutritious breakfast and lunch service for school students and encourages the domestic consumption of nutritiousagricultural commodities.

SPECIAL EDUCATION This program was designed to provide grants to states to assist them in providing afree appropriate public education to all children with exceptionalities.

45


GENERAL FUNDBudgetary Comparison ScheduleFor the Year Ended June 30, 2006

Exhibit 1-1

BUDGETARY FUND BALANCES, BEGINNING $

Resources (inflows)

Local sources:

Taxes:Ad valoremSales and useInterest earnings

Other

State sources:Equalization

OtherFederal sourcesTransfers from other funds

Amounts available for appropriations

Charges to appropriations (outflows)

Instruction:

Regular programs

Special programs


Support services:

Student services

Instructional staff supportGeneral administration


Business services

Plant servicesStudent transportation services

Central services

Food servicesCommunity service programs

Capital OutlayTransfers to other funds

Total charges to appropriations

BUDGETARY FUND BALANCES, ENDING $

VARIANCE WITH

FINAL BUDGETBUDGETED

ORIGINAL

$ 5,970,146

949,0002,643,580

131,500

289,920

13,533.732

937,96565,000

602.745

25.123.588

8,938,156

2,270,275

1,086,056

651,295

943,838472,335

1,329,090

214,0281,458,350

1,109,7207,400

258,2118,284

060.000

18.807.038

AMOUNTS

FINAL

$ 4,556,047 $

973,0003,343,802

127,500

124,260

13,533,732

977,59863,581

805.000

24.504.520

8,692,352

2,073,600

1,118,180

553,127

1,035,311

471,535

1,302.621

227,458

1,347,238

1,118,3837,798

275,53212,097

0850.52Q

19.085.758

$ 6.316.550 $ 5.418.762 $

ACTUAL

AMOUNTS

4,556,047 $

972,6703.349,447

204,292

131,050

13,693,864931,34963,581

188.359

24.090.659

8,846,685

2.354,145

1,218.253

688,259

1,078,549

473,545

1.306.848

225,729

1,416,234

1,102,50710,285

300,59012,16358.08456.805

19.148.681

4.941.978 $

POSITIVE(NEGATIVE!

0

(330)5,645

76,792

6,790

160,132

(46,249)0

(616.641)

(413.861)

(154,333)

(280.545)

(100,073)

(135,132)

(43,238)

(2,010)

(4,227)

1,729

(68,996)

15.876(2,487)

(25,058)(66)

(58,084)793.721

(62.923)

(476.784)

46


TITLE IBudgetary Comparison ScheduleFor the Year Ended June 30,2006

Exhibit 1-2


Resources (inflows)Federal sourcesTransfers from other funds


Charges to appropriations (outflows)Instruction:


Support services:Instructional staff support

General administrationBusiness services

Plant services

Student transportation servicesCommunity service programsCapital Outlay

Transfers to other funds



VARIANCE WITH

FINAL BUDGET

BUDGETEDORIGINAL

$ 0

1,154,2660

1.154.266

914,182

171,63146,000

10

10,7830

11,66000

1.154.266

$ 0

AMOUNTSFINAL

$ 0$

1,033,3440

1.033.344

760,065

212,89942,263

20

11,997

0

6,10000

1.033.344

$ 0$

ACTUALAMOUNTS

0$

996,1460

996.146

732,712

205,24440,746

20

11,5660

5,85800

996.146

9$

POSITIVE

(NEGATIVE)

0

(37,198)0

(37.198)

27,353

7,6551,517

0

431

0242

00

37.198

0

47


MAINTENANCE FUNDSBudgetary Comparison ScheduleFor the Year Ended June 30,2006

Exhibit 1-3


Resources (inflows)

Local sources:

Taxes:

Ad valorem

Interest earnings

Other

State sources:

Other

Transfers from other funds

Bond proceeds



Instruction:

Regular programs


Support services:

General administration


Business services

Plant services


Capital Outlay

Debt services:Principal paymentsInterest and bank charges




BUDGETED AMOUNTS

ORIGINAL

$ 809,338 $

941,000

23,280

0

59,500

00

1.833.118

7.400

1,300

33,000

51,800

40

451,955

89,46052,500

27,300

00

714.755

$ 1.118.363$

FINAL

1,170,412$

962,472

7,7014,898

45,943

00

2.191.426

10,643

0

34,569

49,877

0

367,339

96,699140,487

27,273

0220.000

946.887

1.244.539 $

VARIANCE WITH

FINAL BUDGET

ACTUAL POSITIVE

AMOUNTS (NEGATIVE)

1,170,412 $

962,565

41,086

4,898

55,397

9,553

0

2.243.911

11,143

0

34,570

53,016

0

460,911

104,446140,485

27,27300

831.844

1.412.067 $

0

9333,385

0

9,454

9,553Q

52.485

(500)

0

(1)(3,139)

0

(93.572)

(7,747)

2

00

220.000

115.043

167.528

48


SCHOOL LUNCHBudgetary Comparison ScheduleFor the Year Ended June 30,2006

Exhibit 1-4


Resources (inflows)Local sources:

Interest earningsFood services

State sources:Equalization

Federal sourcesTransfers from other funds



Support services:

Food servicesTransfers to other funds


BUDGETARY FUND BALANCES, ENDING

VARIANCE WITH

FINAL BUDGET

BUDGETED

ORIGINAL

$ 303,800

2,700207,215

60,0001,000,000

61.000

1.634.715

1.534,5570

1.534.557

$ 100.158

AMOUNTSFINAL

$ (49,512) $

5,500200,249

60,0001,005,780

57.922

1.279.939

1,317,9050

1.317.905

$ (37.966) £

ACTUALAMOUNTS

(49,512) $

7,582197,668

60,0001,019,630

47.252

1.282.620

1,369,9790

1.369.979

(87.359) $

POSITIVE(NEGATIVE*

0

2.082(2,581)

013.850

(10.670)

2.681

(52.074)0

(52.074)

(49.393)

49


SPECIAL EDUCATIONBudgetary Comparison ScheduleFor the Year Ended June 30, 2006

Exhibit 1-5

BUDGETARY FUND BALANCES, BEGINNING

Resources (inflows)Federal sourcesTransfers from other funds



Instruction:

Special programs

Support services:

Student services

Instructional staff support


Plant services




BUDGETARY FUND BALANCES, ENDING £

VARIANCE WITH

FINAL BUDGETBUDGETED AMOUNTS ACTUAL POSITIVE

ORIGINAL

$ 146.438 $

525.0000

671.438

252,045

10,870

210,538

21,980

26,392

3,175

0

525.000

$ 146.438 $

FINAL AMOUNTS (NEGATIVE)

0$

635.340

0

635.340

328,763

10,476

228,353

25,750

38,895

3,103

0

635.340

0$

0 $

622,026

0

622.026

321,878

10,263

223,569

25.215

38,086

3.015

0

622.026

0$

0

(13,314)0

M3.314>

6,885

213

4,784

535

809

880

13.314

0

50

Claiborne Parish School BoardNotes to the Budgetary Comparison Schedules

For the Year Ended June 30,2006

A. BUDGETS

Formal budget integration (within the accounting records) is employed as a management control device. Allbudgets are controlled at the function level. Budget amounts included in the accompanying financial statementsinclude the original adopted budget and all subsequent amendments. These revisions were consideredinsignificant by the Board.

Budget Basis of Accounting The major governmental funds' budgets are prepared on the modified accrualbasis of accounting, a basis consistent with accounting principles generally accepted in the United States ofAmerica (GAAP). Budgeted amounts are originally adopted or amended by the Board. Legally, the Board mustadopt a balanced budget; that is, total budgeted revenues and other financing sources including fund balancemust equal or exceed total budgeted expenditures and other financing uses. State statutes require the Board toamend its budgets when revenues plus projected revenues within a fund are expected to be less than budgetedrevenues by five percent or more and/or expenditures within a fund are expected to exceed budgetedexpenditures by five percent or more. The School Board approves budgets at the function level and managementcan transfer amounts between line items within a function.

B. EXCESS OF EXPENDITURES OVER BUDGET

Final Budget Actual Variance$18,280,758 $19,148,681 ($867,923)

1,317,905 1,369,979 ( 52,074)

51

CLAiBORNE PARISH SCHOOL BOARD

Notes to Budgetary Comparison SchedulesFor the Year Ended June 30,2006

Note C - Budget to GAAP Reconciliation - Explanation of differences

between budgetary inflows and outflows and GAAP revenues

and expenditures

Sources/inflows of resources:

Actual amounts (budgetary basis) "available for appropriation"

from the Budgetary Comparison Schedule

The fund balance at the beginning of the year is a budgetary

resource but is not a current year revenue for financial

reporting purposes

Transfers from other funds are inflows of budgetary resources

but are not revenues for financial reporting purposes

Total revenues as reported on the Statement of Revenues,

Expenditures, and Changes in Fund Balances -

Governmental Funds

Uses/outflows of resources:

Actual amounts (budgetary basts) 'Total charges to

appropriations" from the Budgetary Comparison Schedule

Transfer to other funds are outflows of budgetary resources

but are not expenditures for financial reporting purposes

Total expenditures as reported on the Statement of Revenues,Expenditures, and Changes in Fund Balances -Governmental Funds

GENERAL MAINTENANCEFUND TITLE I FUNDS

$ 24,090,659$ 996,146$ 2,243,911

(4,556,047)

(188.3591

19.346.253

19,148,681

(56.905)

0 (1,170,412)

0 (9.5531

996.146

996,146

1063.946

831,844

$ 19.091.876 S 996.146 $ -831.844

52

SCHOOL SPECIALLUNCH EDUCATION

$ 1,282,620 $ 622,026

49,512 0

(47.252} a

1.284.880 622.026

1,369,979 622,026

Q a

$ 1.369.979 $ 622.026

53


SUPPLEMENTAL INFORMATION:

COMBINING NONMAJOR GOVERNMENTALFUNDS

54


NONMAJOR GOVERNMENTAL FUNDSCombining Balance Sheet - By Fund Type

June 30, 2006

Exhibit 2

ASSETS


Investments

Receivables

TOTAL ASSETS


Liabilities:

Accounts, salaries and other payables

Interfund payables

Total Liabilities

Fund Balances:

Reserved for Debt Service

Unreserved and undesignated:

Special RevenueCapital Projects

Total Fund Balances

TOTAL LIABILITIES AND FUND BALANCES £

CAPITAL

PROJECTS

SPECIAL

REVENUE

$ 253,447 $0

429.602

683.049

45,263663.272

708.535

0

(25,486)0

f25.486

$ 683.049 $

DEBT FUND-

SERVICE DISTRICT 13

1,068,782 $13,509

0

1.082.291

00

0

1,082,291

00

1.082.291

1.082.291 $

240,041 $755,549

0

995.590

42,0880

42.088

0

0953.502

953.5Q2

995.590 $

TOTAL

1,562,270769,058429.602

2.760.930

87,351663.272

750.623

1,082.291

(25,486)953.502

2.010.307

2760.930

55


NONMAJOR GOVERNMENTAL FUNDSCombining Statement of Revenues, Expenditures,

and Changes in Fund Balances - By Fund TypeFor the Year Ended June 30, 2006

Exhibit 3

REVENUES

Local sources:

Taxes:

Ad valoremInterest earnings

Other

Federal sources

Total Revenues

EXPENDITURES

Current:Instruction:Regular programs

Special programs


Support services:

Student servicesInstructional staff support



Capita! outlay

Debt service:Principal retirement

Interest and bank charges

Total Expenditures

EXCESS (Deficiency) OF REVENUESOVER EXPENDITURES

SPECIAL

REVENUE

$ 0 $369

19,306833.296

852.971

116,55155,903226.842

49,209229,22614,3813,173600

00

695.345

$ 157.626 S

DEBT

SERVICE

1,586,343 $15,765

00

1.602.109

000

00

54,625000

580,000697.100

1.331.725

270.383 $

CAPITALPROJECTS

DISTRICT 13

0 $80.808

00

80.808

000

00000

2,043,448

00

2.043.448

H. 962.640) S

TOTAL

1,586,34396,94219.306833.296

2.535.887

116,55155,903226,842

49,209229,22669,0063,17360

2,043,448

580,000697.100

4.070.518

(1.534.631)

(CONTINUED)

56

CLA1BORNE PARISH SCHOOL BOARD

NONMAJOR GOVERNMENTAL FUNDSCombining Statement of Revenues, Expenditures,

and Changes in Fund Balances,- By Fund TypeFor the Year Ended June 30, 2006

Exhibits

OTHER FINANCING SOURCES (USES)

Transfers out



FUND BALANCES - BEGINNING


SPECIAL

REVENUE

(188.359)

(30,733)

5.247

$ (25.486) $

DEBT

SERVICE

0 $

0

270,383

811.908

1.082.291 $

CAPITAL

PROJECTS

DISTRICT 13

0

(1r962,640)

2.916.142

953.502 $

TOTAL

(188.359)

<188.360V

(1,722,990)

3.733.297

2.010.307

(CONCLUDED)

57


' (£*•••'

58

Claibome Parish School BoardNonmajor Special Revenue Funds

TITLE n This program provides funds to the school board for projects that are designed to improve the skillsof teachers and instruction in the areas of mathematics, science, computer learning, and foreign languages and toincrease fee accessibility of such instruction to all students.

TITLE V This program provides funds to the school board to a) assist local educational reform efforts, b) tosupport efforts to accomplish the National Education Goals, c) to implement promising educational reformprograms, d) to provide a continuing source of innovation and educational improvement, including support forlibrary services and instructional and media materials, and e) to meet the special educational needs of at-risk andhigh cost students.

DRUG-FREE SCHOOLS This program provides funds to the school board for the establishment, operation,and improvement of local programs of drug abuse prevention, early intervention, rehabilitation referral, andeducation in elementary and secondary schools.

HURRICANE This fund accounts for federal revenue received for displaced students due to Hurricane Ritaand Hurricane Katrina,

VOCATIONAL EDUCATION This program was designed to make the United States more competitive in theworld economy by developing more fully the academic and occupational skills of all segments of thepopulation, principally through concentrating resources on improving education programs leading to academicand occupational skills needed to work in a technologically advanced society.

ADULT EDUCATION This fund accounts for allotments of federal Adult Education State-AdministeredProgram funds from the Louisiana Department of Education to provide adult education programs in the parish.

MF.mrATD This fund accounts for federal and state programs that provide financial assistance and relatedservices to handicapped students.

STARTING POINTS This program accounts for funds from the United States Department of Health andHunian Services through the Louisiana Department of Education. The purpose of the program is to provide forearly childhood development of at-risk four year old children in full day preschool programs.

PRESCHOOL This fund is designed to provide grants to assist states in providing free appropriate publiceducation to preschool children with exceptionalities age three through five years,

STRATEGIES TO EMPOWER PEOPLE fSTEP) This program provides opportunities for work-eligibleindividuals to receive job training employment and supportive services to enable them to become self-sufficient

59


NONMAJOR SPECIAL REVENUE FUNDSCombining Balance Sheet

June 30, 2006

ASSETSCash and cash equivalentsInvestments

ReceivablesInterfund receivables

Inventory

TOTAL ASSETS


Liabilities:Accounts, salaries and other payables

Interfund payables

Unearned revenue

Total Liabilities

Fund Balances:Reserved for inventory

Unreserved and undesignated

Total Fund Balances

TOTAL LIABILITIES AND FUND BALANCES

DRUG FREE

TITLE II TITLE V SCHOOLS HURRICANE

$ 100,874 $0

83,947

0

0

184.821

23,321

161,5000

184.821

00

0

$ 184.821 $

31,456$0

75,544

0

0

107.000

0

107,000

0

107.000

0

0

0

107.000 $

2,121 $0

59,126

00

61.247

3,590

57,6570

61.247

00

0

61.247$

00

188,359

0

0

188.359

0

188,359

0

188.359

00

0

188.359

60

Exhibit 4

VOCATIONAL ADULT STARTING

EDUCATION EDUCATION MEDICAID

$ 29,234 $0

16,3120

0

45.546

1,30144,245

0

45.546

0

0

0

£ 45.546 $

27,643$0

5.1520

0

32.795

6,326

26,4690

32.795

0

0

0

32.795 $

15,958 $0

00

0

15.958

1,903

0

0

1.903

0

14.055

14.055

15.958 $

STRATEGIES

TO EMPOWER

POINTS PRESCHOOL PEOPLE

13,101 $0

0

0

0

13.101

8,82248,042

0

56.864

0

f43.763>

f43.763>

13.101 $

19,338 $0

1,162

0

0

20.500

0

20,5000

20.500

00

0

20.500 $

13,722 $0

0

0

0

13.722

0

9,5000

9.500

0

4.222

4.222

13.722 $

TOTAL

253,4470

429,602

00

683.049

45,263

663,2720

708.53$

0

<25.4£6)

(25.486^

683.049

61


NONMAJOR SPECIAL REVENUE FUNDSCombining Statement of Revenues, Expenditures,


REVENUES

Local sources:

Interest earningsOther

Federal sources

Total Revenues

EXPENDITURES

Current:Instruction:Regular programs

Special programs


Support services:Student servicesInstructional staff support



Total Expenditures

EXCESS (Deficiency) OF REVENUES

OVER EXPENDITURES

OTHER FINANCING SOURCES (USES)Transfers out

Total Other FinancingSources (Uses)




DRUG FREE

TITLE II TITLE V SCHOOLS HURRICANE

$ 0$0

337.136

337.136

99.18600

0225,666

12,284

00

337.136

0

0

0

0

0

$ 0$

0$

0

83.924

83.924

17,3650

66,038

0

0

521

0

0

83.924

0

0

0

0

0

O S

0$

0

39.493

39.493

0

0

0

39,1980

97

198

0

39.493

0

0

0

0

0

O S

0

0

188.359

188.359

0

0

0

0

0

0

0

0

0

188.359

(1 88.359^

f 188.359)

0

0

0

62

Exhibits

STRATEGIES

VOCATIONAL ADULT STARTING TO EMPOWER

EDUCATION EDUCATION MEDICAID POINTS PRESCHOOL PEOPLE

$ 0$0

51.623

51.623

00

40,523

9,7721,328

000

51.623

0

0

0

0

0

$ 0$

0 $0

34.870

34.870

00

34,157

0622

0910

34.870

0

0

0

0

0

O S

369 $19,306

0

19.675

024,536

0

000

9800

25.516

( 5.841)

0

0

(5.841)

19.896

14.055 S

0 $0

56.525

56.525

00

86,124

00000

86.124

(29.599)

0

0

(29.599)

(14.164)

(43.763) $

0$0

36.441

36.441

031,367

0

2391,6101,2611,904

60

36.441

0

0

0

0

0

O S

0 $0

4.925

4.925

00

(D

00

21900

218

4.707

0

0

4,707

(485)

4.222 $

TOTAL

36919,306

833.296

852.971

116,55155,903

226,841

49,209229,226

14,3823,173

60

695.345

157.626

(188.35$)

(188.359)

(30,733)

5.247

(25.488)

63

Claiborne Parish School BoardNonmajor Debt Service Funds

DISTRlCTNO.il

DISTRICT NO. 13

The debt service funds are used to accumulate monies to pay outstanding bond issues. The bonds were issuedby the respective school districts to acquire lands for building sites and to purchase, erect, and improve schoolbuildings, equipment, and furnishings. The bond issues are financed by an ad valorem tax on property withinthe territorial boundaries of the respective wards

64


NONMAJOR DEBT SERVICE FUNDSCombining Balance Sheet

June 30, 2006

Exhibits

ASSETSCash and cash equivalentsInvestments

TOTAL ASSETS

DISTRICTNO. 11

DISTRICT

NO. 13

634.854 447.437

TPTAl

$ 621,345$ 447,437$ 1,068,782

13.509 Q. 13.509

1.082.291


Liabilities:Accounts, salaries and other payables

Total Liabilities

Fund Balances:Reserved for debt service 634.854 447.437 1.082.291

Total Fund Balances

TOTAL LIABILITIES ANDFUND BALANCES

634.854 447.437

$ 634.854 $ 447.437 $

1.082.291

1.082.291

65

CLAfBORNE PARISH SCHOOL BOARD

NONMAJOR DEBT SERVICE FUNDSCombining Statement of Revenues, Expenditures,

and Changes in Fund BalancesFor the Year Ended June 30, 2006

Exhibit?

REVENUES

Local sources:

Taxes:Ad valorem

Interest earnings

Total Revenues

DISTRICT

NO. 11

DISTRICT

NO. 13

$ 829,673 $13.326

842.999

756,6702.439

759.109

Total

1,586,34315.765

1.602.108

EXPENDITURES

Current:Support services:General administration

Debt service:Principal retirement

Interest and bank charges

Total Expenditures

EXCESS (Deficiency) OF REVENUES

OVER EXPENDITURES



28,480 26,145 54,625

285,000

356.920

670.400

172,599

462.255

295,000

340.180

661.325

97,784

349.653

580,000

697.100

1.331.725

270,383

811.908

$ 634.854 £ 447.437 $ 1.082.291

66

Claiborne Parish School BoardAgency Funds

SCHOOL ACTIVrrES FUND The activities of the various individual school accounts are accounted for inthe school activities agency fund. While the accounts are under the supervision of the School Board, theybelong to the individual schools or their student bodies and are not available for use by the School Board.

SALES TAX FUND The sales tax fund accounts for monies collected on behalf of the other taxing authoritiesin Claiborne Parish. Upon receipt of sales tax returns and monies, the School Board remits a check to the otherauthorities monthly.

67


AGENCY FUNDSStatement of Changes In Fiduciary Assets and Liabilities

For the Year Ended June 30, 2006Exhibits

Balance,Bealnnina Additions Deductions

Balance,Endina

ASSETSCash and cash equivalents






459.276

459.276

459,276

459.276

459.276

459.276

459.276

SCHOOL ACTIVITIES

985.102 $ 919.899 S 524.479

524.479985.102

985.102

985.102

********SALES TAX**"

5.797.212

5.797.212

5.797.212

5.797.212

****** ****TQT A I *******

6.782.314

6.782.314

6.782.314

919.899

919.899

919.899

5.797.212

5.797.212

5.797.212

5.797.212

HM*

6.717.111

6.717.111

6.717.111

524.479

524.479

524.479

524.479

524.479

459.276 £ 6.782.314 $ 6.717.111 $ 524.479

68


SCHOOL ACTIVITIES AGENCY FUNDSchedule of Changes in Deposits Due Others

For the Year Ended June 30,2006

Exhibits

SCHOOL

Athens High

Haynesville Elementary

Haynesville Junior/Senior High

Homer Elementary

Homer Junior High

Homer High

Pineview High

Summerfield High

Total

Balance, Balance,Beainnina Additions Deductions Endina

$ 5,541 $

40,986

161,542

83,819

57,169

53,781

20,281

36.157

53,426 $

64,311

268,952

196,992

62,229

167,249

53,766

118.177

53,781 $

59,725

242,816

181,345

49,130

154,049

57,947

121.106

5,186

45,572

187,678

99,466

70,268

66,981

16,100

33.228

459.276 $ 985.102 $_ 919.899 $ 524.479

69


SALES TAX AGENCY FUND -Schedule of Changes in Deposits Due Others

For the Year Ended June 30,2006Exhibit 10

DEPOSIT BALANCE AT BEGINNING OF YEAR

ADDITIONS:Sales tax collections 5.797.212

SETTLEMENTS:School Board General Fund: 3,307,508

Fees for Audit of Sales Tax Vendors 60,232

Police Jury 915,400Town of Homer 1,011,918Town of Haynesville 480,304Junction City 21.850

Total settlements 5.797.212

DEPOSIT BALANCE AT END OF YEAR

70


OTHER SCHEDULES

71


MAINTENANCE FUND ACCOUNTSCombining Balance Sheet

June 30, 2006

PARI8HWIDE DISTRICT 1 DISTRICT 11

ASSETS


Investments

Interfund receivables

TOTAL ASSETS


Liabilities:

Interfund payables

Total Liabilities

Fund Balances:

Designated for roofing

Unreserved and undesignated

Total Fund Balances

TOTAL LIABILITIES AND FUND BALANCES

$ 305,613 $131,797220.000

657.410

0

0

0657.410

657.410

114,955 $00

114.955

0

0

0114.955

114.955

92,871 $42,894

0

135.765

220.000

220.000

0(84.235*

(84.2351

235,897202,787

0

438.684

0

0

104,872333.812

438.684

$ 657.410$ 114.955$ 135.765 $_ 438.684

72

Exhibit 11

DISTRICT 16 DISTRICT 26 TOTAL

158,734 $16,211

0

110,308 $00_

1,018,378393,689220.000

174.945 110.308 1.632.067

220.000

0

0174.945

174.945

£ 174.945 $

0

0110.308

110.308

110.308 $

220.000

104,8721.307.195

1.412.067

1.632.067

73


MAINTENANCE FUND ACCOUNTSCombining Schedule of Revenues, Expenditures,

and Changes In Fund BalancesFor the Year Ended June 30,2006

PARISHWIDE DISTRICT 1 DISTRICT 11 DISTRICT 13

REVENUESLocal sources:Taxes:

Ad valoremInterest earningsOther

State sources:Other

Total Revenues

EXPENDITURESCurrent:Instruction:Regular programsOther instructional programs

Support services:General administrationSchool administrationBusiness servicesPlant servicesStudent transportation services

Capital outlayDebt service:Principal retirement

Tola! Expenditures

EXCESS (Deficiency) OF REVENUESOVER EXPENDITURES

OTHER FINANCING SOURCES (USES)

Transfers in





$ 443,319 $12,093

0

23.670

479.082

7,2900

15,31253,016

0 .234,749101,930

0

0

412.297

66.785

9.553

9.553

76,338

581.072

$ 657.410 $•

38,526 $2,815

0

0

41.341

00

1,37300

2,40200

9.091

12.866

28.475

0

0

28,475

86.480

114.955$

109,042 $3,506

0

5.250

117.798

00

3,74300

57,0750

866

0

61.684

56.114

0

0

56.114

(140.349^

(84.235* $

268,95715,3854.898

26.477

315.717

3,8530

10,64300

130,7512,516

136,483

0

284.246

31.471

0

0

31,471

407.213

438.684

74

DISTRICT 16

$ 63,372 $4,388

0

0

67.760

00

2,12800

20,72700

9.091

31.946

35.814

0

0

35,814

139.131

$ 174.945 $

DISTRICT 26

39,349 $2,899

0

0

42.248

00

1,37100

15,2070

3,136

9.091

28.805

13.443

0

0

13,443

96.865

110.308$

Exhibit 12

TOTAL

962,56541,0864,898

55.397

1.063.946

11,1430

34,57053,016

0460,911104,446140,485

27.273

831.844

232.102

9.553

9.553

241,655

1.170.412

1.412.067

75


Schedule of Compensation Paid Board MembersAs of and For the Year Ended June 30,2006

Exhibit 13

The schedule of compensation paid School Board members is in compliance with House Concurrent ResolutionNo. 54 of the 1979 Session of the Louisiana Legislature. Compensation of the School Board members isincluded in the general administrative expenditures of the general fund. In accordance with Louisiana RevisedStatute 11:56) the School Board members have elected the monthly payment method of compensation. Underthis method, each member of the School Board receives $400 per month.

Board Member

William H. Maddox, President

Vera R Walker Meadors, Vice President

Danny Lee

Joe M. Lee

A. D. Williams

Stanley O. Edwards

Thomas F. Davidson

AlmeterH. Willis

E. Blake Hemphill

B. Stewart Griffin

Total

76

Claibome Parish School Board

SINGLE AUDIT INFORMATION

77

ALLEN, GREEN & WILLIAMSON, LLPCERTIFIED PUBLIC ACCOUNTANTS

„ u^7, DianeFeischoff.CPAMonroe, LA 71211-6075 AmvTvnes CPA

2414 Ferrand Street Phone: (318)3OM422 Amy rynes, CFA-r ™* Monroe. IA 71201 Fax (318)388-4864 :Ine CPA. u

Never UwteresSmate The valuer --«,„-«« Ernest L, Allen, CPATolMree: (888)741-0205 (Retired) ^

www.allengreencpa.com

Report on Internal Control Over FinancialReporting and on Compliance and Other Matters Based on an Audit of Financial Statements

Performed in Accordance With Government Auditing Standards

Board MembersClaibome Parish School BoardHomer, Louisiana

We have audited the financial statements of the governmental activities, each major fund, and the aggregateremaining fund information of Claiborne Parish School Board, as of and for the year ended June 30, 2006,which collectively comprise the School Board's basic financial statements and have issued our report thereondated February 14,2007. We conducted our audit in accordance with auditing standards generally accepted inthe United States of America and the standards applicable to financial audits contained in Government AuditingStandards* issued by the Comptroller General of the United States.

Internal Control Over Financial ReportingIn planning and performing our audit, we considered the School Board's internal control over financial reportingin order to determine our auditing procedures for the purpose of expressing our opinion on the financialstatements and not to provide an opinion on the internal control over financial reporting. However, we notedcertain matters involving the internal control over financial reporting and its operation that we consider to bereportable conditions. Reportable conditions involve matters coming to our attention relating to significantdeficiencies in the design or operation of the internal control over financial reporting that, in our judgment,could adversely affect the School Board's ability to initiate, record, process, and report financial data, consistentwith the assertions of management hi the financial statements. Reportable conditions are described in theaccompanying schedule of findings and questioned costs as items 06-F1 and 06-F3.

A material weakness is a reportable condition in which the design or operation of one or more of the internalcontrol components 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 not bedetected within a timely period by employees in the normal course of performing their assigned functions. Ourconsideration of the internal control over financial reporting would not necessarily disclose all matters in theinternal control that might be reportable conditions and accordingly would not necessarily disclose all reportableconditions that are also considered to be material weaknesses. However, we believe that none of the reportableconditions described above are material weaknesses.

Management Letter ItemHowever, we noted an immaterial instance of noncompliance, which we have reported to management of theSchool Board hi a separate letter dated February 14,2007.

78Also Located a Shnsveport, Louisiana

Member American Institute of Certified Public Accountants, Society of Louisiana Certified Public Accountants endAmerican Institute of Certified Public Accountants Division for CPA Finns


Compliance and Other MattersAs part of obtaining reasonable assurance about whether the School Board's financial statements are free ofmaterial misstatement, we performed tests of its compliance whh certain provisions of laws, regulations,contracts and grants agreements, noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed one instance of noncompliance or other matters that is required to be reported underGovernment Auditing Standards which is described in the accompanying Schedule of Findings and QuestionedCosts as item 06-F2.

This report is intended solely for the information and use of the Board, management, federal awarding agencies,and pass-through entities and is not intended to be and should not be used by anyone other than these specifiedparties. Although the intended use of this letter may be limited, under Louisiana Revised Statute 24:513 thisletter is distributed by the Office of the Louisiana Legislative Auditor as a public document.


Monroe, LouisianaFebruary 14, 2007

79

ALLEN, GREEN & WILLIAMSON, LLP Margie WUHamso^CPACERTIFIED PUBUC ACCOUNTANTS -

™ ™.<Monroe,LA 71211-6075 AmvTvneLCPA2414 Ferrand Street Phone: (318)388-4422 Amy Tynes, CFAMonroe, LA 71201 Fax: (318)388-4664 -

vi ™- _ , ««..—,... __*- Ernert L. Allen, CPANever UndmShmu The VKue?1 T<**« (888)741-0205


Report on Compliance With Requirements Applicable toEach Major Program and on Internal Control Over

Compliance in Accordance With OMB Circular A~133

Board MembersCiaiborne Parish School BoardHomer, Louisiana

ComplianceWe have audited the compliance of Ciaiborne Parish School Board with the types of compliance requirementsdescribed in the U. S. Office of Management and Budget (OMB) Circidar A-133 Compliance Supplement thatare applicable to each of its major federal programs for the year ended June 30,2006. The School Board's majorfederal programs are identified in the summary of auditors1 results section of the accompanying schedule offindings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grantsapplicable to each of its major federal programs is the responsibility of the School Board's management. Ourresponsibility is to express an opinion on the School Board's compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the UnitedStates of America; the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, LocalGovernments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we planand perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major federalprogram occurred. An audit includes examining, on a test basis, evidence about the School Board's compliancewith those requirements and performing such other procedures as we considered necessary in the circumstances.We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legaldetermination on the School Board's compliance with those requirements.

In our opinion, the School Board complied, in all material respects, with the requirements referred to above thatare applicable to each of its major federal programs for the year ended June 30,2006.

Internal Control Over ComplianceHie management of the School Board is responsible for establishing and maintaining effective internal controlover compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. Inplanning and performing our audit, we considered the School Board's internal control over compliance withrequirements that could have a direct and material effect on a major federal program in order to determine ourauditing procedures for the purpose of expressing our opinion on compliance and to test and report on internalcontrol over compliance in accordance with OMB Circular A-133.

80Also Located m Shreveport, Louisiana

Member: American Institute of Certified Public Accountants, Society of Louisiana Certified Public Accountants andAmerican Institute of Certified Public Accountants Division for CPA Finns


Our consideration of the internal control over compliance would not necessarily disclose ali matters in theinternal control that might be material weaknesses. A material weakness is a reportable condition in which thedesign or operation of one or more of the internal control components does not reduce to a relatively low levelthe risk that noncompliance with applicable requirements of laws, regulations, contracts and grants caused byerror or fraud that would be material in relation to a major federal program being audited may occur and not bedetected within a timely period by employees in the normal course of performing their assigned functions. Wenoted no matters involving the internal control over compliance and its operation that we consider to be materialweaknesses.

Schedule of Expenditures of Federal AwardsWe have audited the financial statements of the governmental activities, each major fund, and the aggregateremaining fund information of the School Board, as of and for the year ended June 30, 2006, and have issuedour report thereon dated February 14, 2007. Our audit was performed for the purpose of forming opinions onthe financial statements that collectively comprise the School Board's basic financial statements. Theaccompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis asrequired by OMB Circular A-133 and is not a required part of the basic financial statements. Such informationhas been subjected to the auditing procedures applied in the audit of the basic financial statements and, in ouropinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

This report is intended solely for the information and use of the Board, management, federal awarding agencies,and pass-through entities and is not intended to be and should not be used by anyone other than these specifiedparties. Although the intended use of this letter may be limited, under Louisiana Revised Statute 24:513 thisletter is distributed by the Office of the Louisiana Legislative Auditor as a public document



81

Claiborne Parish School BoardSchedule of Expenditures of Federal AwardsAs of and For the Year Ended June 30,2006

FEDERAL GRANTOR/PASS-THROUGH GRANTOR/PROGRAM NAME

CFDANumber

Pass-ThroughGrantor No.

CASH FEDERAL AWARDSUnited States Department of Agriculture

Passed through Louisiana Department of Education:School Breakfast ProgramNational School Lunch Program

Total Child NutritionSchools and Roads - Forestry

Total United States Department of AgricultureUnited States Department of Education

Passed Through Louisiana Department of Education:Adult Education - State Grant ProgramTitle I Grants to Local Educational AgenciesSpecial Education:

Grants to States (Part B)Preschool Grants

Vocational Education:Basic Grants to States

Title IV (Safe and Drug Free Schools)Title II Part A Improving Teacher QualityRural Education Achievement Program (REAP)Hurricane Education Recovery Act ProgramsTitle V

Total United States Department of EducationUnited States Department of Health and Human Services

Passed Through the Louisiana Department of Education:Child Care and Development Block Grant (Starting PointsPreschool)

TOTAL CASH FEDERAL AWARDS

10.55310.555

10.665

84.00284.010

84.02784.173

84.04884.18684.367

84.358B84.938C84.298A

NONE

NONE

28-06-44-1428-06-T1-14

28-06-B1-1428-06-P1-14

28-06-02-1428-06-70-1428-06-50-1428-06-RE-14

NONE28-06-80-14

Expenditures

93.558 2806 EP 14

$ 277,342658.438935,78063,581

999.361

34,870996,146

622,02636,441

51,62339,493

337,13676,842

188,3597.082

2,390,018

61.4503.450.829

United States Department of AgriculturePassed Through Louisiana Department of Agriculture and

Forestry:Food Distribution (Commodities)

TOTAL FEDERAL AWARDS

NONCASH FEDERAL AWARDS

10.550 NONE 83.850$3.534.679

82

Claiborne Parish School BoardNotes to the Schedule of Expenditures of Federal Awards

As of and For the Year Ended Jane 30,2006

NOTE 1 - GENERAL The accompanying Schedule of Expenditures of Federal Awards presents the activity ofall federal awards programs of the Claiborne Parish School Board. The School Board reporting entity is definedin Note 1 to the School Board's basic financial statements. Federal awards received directly from federalagencies, as well as federal awards passed through other government agencies, are included in the schedule.

NOTE 2 - BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards ispresented using the modified accrual basis of accounting, which is described in Note 1 to the School Board'sbasic financial statements.

NOTE 3 - RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Federal awards revenues arereported in the School Board's basic financial statements as follows:

Major funds:General Fund $ 63,581Title I 996,146School Lunch 1,019,630Special Education 622,026

Nonmajor Special revenue funds:Title IV (Safe and Drug Free Schools) 39,493Title H 337,136Title V 83,924Vocational Education 51,623Adult education 34,870Starting points 56,525Preschool 36,441Strategies to empower people 4,925Hurricane Education Recovery Act Programs 188,359

Total $3.534.679

NOTE 4 - RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Amounts reported in theaccompanying schedule agree with the amounts reported in the related federal financial reports except forchanges made to reflect amounts in accordance with accounting principles generally accepted in the UnitedStates of America.

NOTE 5 - MATCHING REVENUES For those funds that have matching revenues and state funding, federalexpenditures were determined by deducting matching revenues from total expenditures.

NOTE 6 - NONCASH PROGRAMS The commodities received, which are noncash revenues, are valuedusing prices provided by the United States Department of Agriculture.

83

Claiborne Parish School BoardSchedule of Findings and Questioned CostsAs of and For the Year Ended June 30,2006

PART I - Summary of the Auditors' Results

Financial Statement Audit

i. The type of audit report issued was unqualified.

ii. There were two reportable conditions required to be disclosed by Government Auditing Standards,issued by the Comptroller Genera! of the United States of America. The reportable conditions werenot considered to be material weaknesses.

iii. There was one instance of noncompliance considered material, as defined by the GovernmentAuditing Standards, to the financial statement.

Audit of Federal Awards

iv. There were no reportable conditions required to be disclosed by OMB Circular A-133.

v. The type of report the auditor issued on compliance for major programs was unqualified.

vi. The audit disclosed no audit findings which the auditor is required to report under OMB CircularNo. A-133, Section .510(a).

vii. The major federal programs are:

Special Education ClusterGrants to State (Part B) 84.027Preschool Grants 84.173

Title I Grants to Local Educational Agencies 84.010

Title II Part A - Improving Teacher Quality 84.367

viii. The dollar threshold used to distinguish between Type A and Type B programs as described in OMBCircular A-133, Section .520(b) was $300,000.

ix. The auditee does qualify as a low-risk auditee under OMB Circular A-133, Section .530.

84

Claiborne Parish School BoardSchedule of Findings and Questioned Costs

As of and For the Year Ended June 30,2006

PART II - Findings related to the financial statements which are required to be reported in accordancewith Government Auditing Standards generally accepted in the United States of America:

Reference # and title; 06-F1 Sates Tax Procedures

Entity-wide or program/department specific: This finding is entity-wide.

Criteria or specific requirement: Good cash management requires that cash receipts be deposited in a timelymanner. AG&W consider deposits within three banking days as being timely. Good internal control proceduresrequire assignment of job responsibilities in such a way as to divide the accounting function between two ormore people so that if transactions were processed that were not consistent with management's policies and/orerrors were made in the accounting process, these transactions would be discovered by the School Board'spersonnel in the process of performing their assigned duties within a timely period and the necessary correctionscould be made.

Condition found; While testing cash receipts for the Sales Tax funds, it was noted that 2 of 25 tested were notdeposited in a timely manner (within three business days). Also there were 12 of 25 receipts where the datereceived was not marked on the report. There were 9 out of 25 instances where it was not possible to determineif the deposits were made timely. The sales tax collector has been opening mail, logging receipts, and alsoentering the receipts into the system.

Possible asserted effect (cause and effect):

Cause: Receipts have not been dated to ensure that they get deposited in a timely manner, and in someinstances, were not deposited in a timely manner. The sales tax clerk now opens mail, logsreceipts, and enters them into the system.

Effect: Cash deposits were not made timely by the School Board. There is not an adequate separation ofduties.

Recommendations to prevent future occurrences: The School Board should date all receipts with the datereceived and ensure that all receipts are deposited timely (within three business days). The School Board shouldreassign duties between the sales tax clerk and another individual in order to have better internal control over theaccounting function.

Reference # and title 06-F2 Late Submission of the Audit Report

Criteria or specific requirement; In accordance with LSA-R.S. 24:513 A(5Xa) "Audits should be completedwithin six months of the close of the entity's fiscal year."

Condition found: The audit report was filed with the Legislative Auditor's office after the deadline.


Cause: The field work was not started until after the due date of December 31,2006. This was due to keypersonnel being out for medical reasons.

Effect; The audit report was not filed timely.

85

Claiborne Parish School BoardSchedule of Findings and Questioned CostsAs of and For the Year Ended June 30,2006

Recommendations to prevent future occurrences: Efforts should be made to have personnel cross-trained tofill in for absent personnel.

Reference # and title: 06-F3 Student Activity Funds

Entity-wide or program/department specific: This finding is entity-wide.

Criteria or specific requirement: Student Activity Funds, consisting of fund raising money, club accounts andother activities, are maintained by the individual schools. The principal's office collects and disburses funds forthese accounts and maintains the accounting records. The school principals are responsible for proper internalcontrol and accounting of these funds. The School Board is required to ensure that internal control andaccounting of these funds are being performed properly,

Condition found: When testing school activity funds at three schools, the following was noted:

• 5 outstanding checks did not clear in the subsequent month's bank statement.• 14 deposits were not made on a timely basis.• 11 individual receipts did not match the deposit total.• 15 individual receipts within the deposits could not be traced to supporting documentation.• 1 invoice amount did not agree with the check amount.• 1 invoice was not supported by proper documentation.• 4 invoices' date was not current when compared to the date of the check.• 1 expenditure was not in accordance with the School Board's purchasing policy.


Cause: The schools are not following the guidelines set by the School Board.

Effect: The internal control procedures are not being properly followed at these schools, which lead toweaker internal controls than prudent.

Recommendations to prevent future occurrences: The School Board should stress to the principals andbookkeepers the importance of good internal control procedures over the student activity funds as well asestablish a system to randomly review student activity funds to ensure internal control procedures are beingfollowed.

86


OTHER INFORMATION

87

Claiborne Parish School BoardSchedule of Prior Year Audit Findings


Reference # and title; 05-F1 Student Activity Funds

Condition; : Student Activity Funds, consisting of fund raising money, club accounts and other activities, aremaintained by the individual schools. The principal's office collects and disburses funds for these accounts andmaintains the accounting records. The school principals are responsible for proper internal control andaccounting of these funds. The School Board is required to ensure that internal control and accounting of thesefunds are being performed properly.

When testing school activity funds at three schools, the following was noted:• 2 bank reconciliations did not have support for interrund transfers• 2 bank reconciliations did not agree to the general ledger balance.• 23 deposits were not made timely according to the School Board policy.• 21 deposits could not be matched to individual receipts• 1 disbursement was not canceled to prevent duplicate payment.• 14 disbursements were not supported by proper documentation.• 11 disbursements were not paid timely.

Corrective action taken: See current-year finding 06-F3.

Reference # and title: 05-F2 Employee Time Certifications

Condition: The School Board is required to have employees, whose salary is charged 100% to federalprograms, certify that the employee is spending 100% of their time on that particular program hi which thesalary is being charged to. This certification of time should be completed on a semi-annual basis.

When testing payroll disbursements in the federal programs tested, it was noted that the School Board is nothaving employees certify that they are spending 100% of their time on the program in which their salary is beingcharged.

Corrective action taken: Employee time certifications are now being completed by the Personnel Manager.

88

Claiborne Parish School BoardCorrective Action for Current-Year Audit Findings


Reference # and title; 06-F1 Sales Tax Procedures

Condition; While testing cash receipts for the Sales Tax funds, it was noted that 2 of 25 tested where notdeposited in a timely manner (within three business days). Also there were 12 of 25 receipts where the date wasreceived was not marked on the report. There were 9 out of 25 instances where it was not possible to determineif the deposits were made timely. The sales tax collector has been opening mail, logging receipts, and alsoentering the receipts into the system.

Corrective action planned; The School Board will log each check received per day. Also, receipts will betimed stamped and an employee will be appointed to calculate deposits, other than the Sales Tax Collector, andthen make the deposits within three business days.

Contact person responsible for corrective action:Ginger Woodall, Business Manager Telephone: (318) 927-3502Claiborne Parish School Board Fax: (318) 927-9184415 East Main StreetHomer, LA 71040

Anticipated completion date; Immediately.

Reference # and title; 06-F2 Late Submission of Audit Report

Condition: The audit report was filed with the Legislative Auditor's office after the deadline.

Corrective action planned: The Business Manager for the School Board was on sick leave for the time periodof November through December and records were not completed in time to file current year audit timely. Theaudit for the 2006-2007 should be submitted to the Legislative Auditor's office by the required deadline.

Contact person responsible for corrective action:Ginger Woodall, Business Manager Telephone: (318) 927-3502Claiborne Parish School Board Fax: (318) 927-9184415 East Main StreetHomer, LA 71040

Anticipated completion date; December 31,2007.

Reference # and title; 06-F3 Student Activity Funds

Condition; Condition found; When testing school activity funds at three schools, the following was noted:

• 5 outstanding checks did not clear in the subsequent month's bank statement.• 14 deposits were not made on a timely basis.• 11 individual receipts did not match the deposit total.» 15 individual receipts within the deposits could not be traced to supporting documentation.• 1 invoice amount did not agree with the check amount.• 1 invoice was not supported by proper documentation.• 4 invoices' date was not current when compared to the date of the check.• 1 expenditure was not in accordance with the School Board's purchasing policy.

89

Claiborne Parish School BoardCorrective Action for Current-Year Audit Findings


Corrective action planned; Schools will be randomly audited by the central office on a semi-annual basis.Any school not acceptable will be audited by the central orifice until all findings are cleared.

Contact person responsible for corrective action;Ginger Woodall, Business Manager Telephone: (318) 927-3502Claiborne Parish School Board Fax: (318) 927-9184415 East Main StreetHomer, LA 71040

Anticipated completion date: Immediately.

90

ALLEN, GREEN & WILLIAMSON, LLPCERTIFIED PUBLIC ACCOUNTANTS

P.O. Box 6075Monroe, LA 71211-6075

2414 Fenand Street Phone: (318) 388-4422Monroe, LA 71201 Fax: (318)388-4664

www.altengreencpa.com

Management Letter


In planning and performing our audit of the financial statements of the governmental activities, each major fund,and the aggregate remaining fund information of the Claiborne Parish School Board, as of and for the yearended June 30,2006, which collectively comprise the School Board's basic financial statements, we consideredthe School Board's internal control to plan our auditing procedures for the purpose of expressing our opinion onthe financial statements and not to provide assurance on internal control.

However, during our audit, we noted a certain matter involving other operational matter that is presented foryour consideration. This letter does not affect our report dated February 14, 2007 on the basic financialstatements of the School Board. We will review the status of mis comment during our next audit engagementOur comment and recommendation, all of which have been discussed with appropriate members ofmanagement, is intended to result in other operating efficiency. We will be pleased to discuss this comment infurther detail at your convenience, to perform any additional study of these matters, or to assist you inimplementing the recommendation. Our comment is summarized as follows:

06-M1 Capital Assets Listing

Comment When performing physical inspection at three schools and tracing 30 assets from asset to listing and30 assets from listing to asset, the following items were noted:

* Seven of the assets could not be traced from listing to asset• Two of the assets could not be traced from asset to listing.

Recommendation: The School Board should have procedures to ensure that all capital assets at the school aretagged and added to the listing. If for some reason the date or amounts are unknown, the asset should still belisted but with zero cost. The School Board should also establish procedures in which if assets are disposed,transferred or scrapped, that the person in charge of the asset listing is given the proper information in order toupdate the capital assets listing.

Management's response: The School Board will send representatives from the central office to complete thephysical inventory for the year. They will be verifying the fixed asset list Each school will be responsible innotifying the central office of transfers, scrapping or disposing of equipment on standardized forms.

91Also Located in Snreveport, Louisiana

Member American Institute of Certified Public Accountants, Society of Louisiana Certified Public Accountants andAmerican Institute of Certified Public Accountants Division for CPA Finns


Our audit procedures are designed primarily to enable us to form opinions on the financial statements of thegovernmental activities, each major fund, and the aggregate remaining fund information of the School Board, asof and for the year ended June 30, 2006, which collectively comprise the School Board's basic financialstatements, and therefore, may not reveal all weaknesses in policies and procedures that may exist

This report is intended solely for the information and use of the Board, management, federal awarding agencies,and pass-through entities and is not intended to be and should not be used by anyone other than theses specifiedparties. Although the intended use of these reports may be limited, under Louisiana Revised Statute 24:513 thisreport is distributed by the Office of the Louisiana Legislative Auditor as a public document

Allen, Green & Williamson, LLP


92

Claiborne Parish School BoardStatus of Prior Year Management Letter Item

June 30,2006

05-M1 Capital Assets Listing

Comment: When performing physical inspection at three schools and tracing 30 assets from asset to listing and30 assets from listing to asset, the following items were noted:

• Three of the assets could not be traced from listing to asset* Seven of the assets could not be traced from asset to listing.

Recommendation: The School Board should have procedures to ensure that all capital assets at the school aretagged and added to the listing. If for some reason the date or amounts are unknown, the asset should still belisted but with zero cost The School Board should also establish procedures in which if assets are disposed,transferred or scrapped, that the person in charged of the asset listing is given the proper information in orderupdate the capital assets listing.

Management's response: See current year management letter item 06-M1.

93

Tim Green, CPA

ALLEN, GREEN & WILLIAMSON, LLP Ma^eWiUiamson-CPA

CERTIFIEDPUBUC ACCOUNTANTS Di Far CPA

ThcCPA. „, iir ^T^^?£Mf Aroytynes^CPANewUiKferotfmatBtoVWue!1' Monro^LA 73211-6075

2414 Fenand Street Phone: (318) 388-4422Monroe, LA 71201 Fax: (318) 388^664 Ernest L. ADw, CPA

To free; (888,741 .205 (11^1963-2000


INDEPENDENT ACCOUNTANTS1 REPORTON APPLYING AGREED-UPON PROCEDURES


We have performed the procedures included in the Louisiana Governmental Audit Guide and enumerated below,which were agreed to by the management of the Claiborne Parish School Board, Homer, Louisiana, and theLegislative Auditor, State of Louisiana, solely to assist users in evaluating management's assertions about theperformance and statistical data accompanying the annual financial statements of the School Board and todetermine whether the specified schedules are free of obvious errors and omissions as provided by the Board ofElementary and Secondary Education (BESE). This agreed-upon procedures engagement was performed inaccordance with standards established by the American Institute of Certified Public Accountants and applicablestandards of Government Auditing Standards. The sufficiency of these procedures is solely the responsibility ofthe specified users of the reports. Consequently, we make no representation regarding the sufficiency of theprocedures described below either for the purpose for which this report has been requested or for any otherpurpose.

Our procedures and findings relate to the accompanying schedules of supplemental information and are asfollows:

General Fund Instructional and Support Expenditures and Certain Local Revenue Sources (Schedule 1)

1. We selected a random sample of 25 transactions and reviewed supporting documentation to determine if thesampled expenditures/revenues are classified correctly and are reported in the proper amounts for each ofthe following amounts reported on the schedule:

• Total General Fund Instructional Expenditures,

• Total General Fund Equipment Expenditures,

• Total Local Taxation Revenue,

• Total Local Earnings on Investment in Real Property,

• Total State Revenue in Lieu of Taxes,

• Nonpublic Textbook Revenue, and

• Nonpublic Transportation Revenue.

94Abo Located in Sbreveport, Louisiana

Member American Institute of Certified Public Accountants. Society of Louisiana Certified Public Accountants andAmerican Institute of Certified Public Accountants Division tor CPA Finns


Comment: No exceptions were noted when testing the 25 transactions. However, in preparation of theschedule, total expenditures in the general fund column of the APR were included; only instructionalexpenditures in the general fund column of the APR should have been picked up. Total revenues should havebeen included when only revenues in the general fund column were included.

Management's Response: Schedule was revised.

Education Levels of Public School Staff (Schedule 2)

2. We reconciled the total number of full-time classroom teachers per the schedule "Experience of PublicPrincipals and Full-time Classroom Teachers" (Schedule 4) to the combined total number of full-timeclassroom teachers per this schedule and to school board supporting payroll records as of October 1.

Comment: The total number of full-time classroom teachers per the schedule did not reconcile to school boardsupporting payroll records as of October 1. One teacher was included that was not hired until January 2006.


3. We reconciled the combined total of principals and assistant principals per the schedule "Experience ofPublic Principals and Full-time Classroom Teachers" (Schedule 4) to the combined total of principals andassistant principals per this schedule.

Comment: No exceptions were noted as a result of applying agreed-upon procedures.

4. We obtained a list of full-time teachers, principals, and assistant principals by classification as of October 1and as reported on the schedule. We traced a random sample of 25 teachers to the individual's personnel fileand determine if the individual's education level was properly classified on the schedule.


Number and Type of Public Schools (Schedule 3)

5. We obtained a list of schools by type as reported on the schedule. We compared the list to the schools andgrade levels as reported on the Title I Grants to Local Educational Agencies (CFDA S4.010) applicationand/or the National School Lunch Program (CFDA 10.555)

Comment: There were no exceptions noted as a result of applying the agreed upon procedures.

Experience of Public Principals and Full-time Classroom Teachers (Schedule 4)

6. We obtained a list of full-time teachers, principals, and assistant principals by classification as ofOctober reported on the schedule and traced the same sample used in procedure 4 to the individual'spersonnel file and determined if the individual's experience was properly classified on the schedule.

Comment: Two exceptions were noted; however, it did not change the employee's category on the schedule.

Public Staff Data (Scheduled)

7. We obtained a list of all classroom teachers including their base salary, extra compensation, and ROTC orrehired retiree status as well as full-time equivalent as reported on the schedule and traced a random sampleof 25 teachers to the individual's personnel file and determined if the individual's salary, extracompensation, and full-time equivalents were properly included on the schedule.

95


8. We recalculated the average salaries and full-time equivalents reported in the schedule.

Comment: The October PEP report was used in preparing this schedule. The June PEP report should be usedfor this calculation.


Class Size Characteristics Schedule 6)

9. We obtained a list of classes by school, school type, and class size as reported on the schedule andreconciled school type classifications to Schedule 3 data, as obtained in procedure 5. We then traced arandom sample of 10 classes to the October 1 roll books for those classes and determined if the class wasproperly classified on the schedule.


Louisiana Educational Assessment Program {LEAP) for the 21st century (Schedule 7)

10. We obtained test scores as provided by the testing authority and reconciled scores as reported by the testingauthority to scores reported in the schedule by the School Board.


The Graduation Exit Exam for the 21st Centwy(Schechde 8)

1 1 . We obtained test scores as provided by the testing authority and reconciled scores as reported by the testingauthority to scores reported in the schedule by the School Board.


The Iowa TestsfSchedide 9)

12. We obtained test scores as provided by the testing authority and reconciled scores as reported by the testingauthority to scores reported in the schedule by the School Board.


This report is intended solely for the use of management of the Claiborae Parish School Board, the LouisianaDepartment of Education, the Louisiana Legislature, and the Legislative Auditor, State of Louisiana, and shouldnot be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of theprocedures for their purposes. Under Louisiana Revised Statute 24:513, this report is distributed by theLegislative Auditor as a public document



96

Schedule 1

CLAIBORNE PARISH SCHOOL BOARDHomer, Louisiana

General Fund Instructional and Support Expendituresand Certain Local Revenue SourcesFor the Year Ended June 30,2006

Genera! Fund Instructional and Equipment ExpendituresGeneral Fund Instructional Expenditures:Teacher and Student Interaction Activities:

Classroom Teacher Salaries 7,419,934.00Other Instructional Staff Activities 1,508,829.00Employee Benefits 3,019,025.00Purchased Professional and Technical Services 1,144.00Instructional Materials and Supplies 381,845.00Instructional Equipment -

Total Teacher and Student Interaction Activities 12330777

Other Instructional Activities 31007

Pupil Support Activities 689192Less: Equipment for Pupil Support Activities 0

Net Pupil Support Activities 689192

Instructional Staff Services 1078458Less: Equipment for Instructional Staff Services p_

Net Instructional Staff Services 1078458

Total General Fund Instructional Expenditures 14129434ssssBBaenvntnssa

Total General Fund Equipment Expenditures 112577

Certain Local Revenue SourcesLocal Taxation Revenue:Constitutional Ad Valorem Taxes 456092Renewable Ad Valorem Tax 1405885Debt Service Ad Valorem Tax 1586343Up to 1 % of Collections by the Sheriff on Taxes Other than School Taxes 73259Sales and Use Taxes 3295448

Total Local Taxation Revenue 6817027

Local Earnings on Investment In Real Property:Earnings from 16th Section Property 0Earnings from Other Real Property 7404

Total Local Earnings on Investment in Real Property 7404

State Revenue in Lieu of Taxes:Revenue Sharing - Constitutional Tax 33358Revenue Sharing • Other Taxes 87820Revenue Sharing - Excess Portion 0Other Revenue in Lieu of Taxes 0

Total State Revenue in Lieu of Taxes 121178

Nonpubllc Textbook Revenue

NonpuWfc Transportation Revenue

97

Schedule 2


Education Levels of Public School StaffAs of October 1,2005

Category

Less than a Bachelor's Degree

Bachelor's Degree

Master's Degree

Master's Degree + 30

Specialist in Education

Ph, D.orEdD.

Total

Full-time Classroom Teachers

Certificated

Number

0

146

36

29

0

2

213

Percent

0.00%

6870%

16.80%

13.50%

0.00%

1.00%

100.00%

Uncertlficated

Number

0

0

0

0

0

0

0

Percent

0,00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

Principals & Assistant Principals

Certificated

Number

0

0

4

9

0

0

13

Percent

0.00%

0.00%

30.80%

69.20%

0,00%

0.00%

100.00%

Uncertlficated

Number

0

0

0

0

0

0

0

Percent

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

98

Schedule 3


Number and Type of Public SchoolsFor the Year Ended June 30,2006

Type

Elementary

Middle/Jr. High

SecondaryCombination

Total

Number

2

1

1

4

8

Note: Schools opened or closed during the fiscal year are included in this schedule.

99

Schedule 4


Experience of Public Principals and Full-time Classroom TeachersAs of October 1,2005

Assistant Principals

Principals

Classroom Teachers

Total

0-1 Yr.

0

0

20

20

2-3 Yrs.

0

0

25

25

4-10 Yrs.

0

0

65

65

11-14 Yrs.

1

1

15

17

15-1 9 Yrs.

0

1

23

24

20-24 Yrs.

0

4

9

13

25+ Yrs.

1

5

56

62

Total

2

11

213

226

100

Schedule 5


Public School Staff DataFor the Year Ended June 30,2006

All ClassroomTeachers

Classroom TeachersExcluding ROTC

and Rehired Retirees

Average ClassroomTeachers' SalaryIncluding Extra Compensation

$37,363.00 $34,707.00

Average ClassroomTeachers' SalaryExcluding Extra Compensation

$37,094.00 $34,517.00

Number of Teacher Full-timeEquivalents (FTEs) used inComputation of Average Salaries

218 200

Note: Figures reported include all sources of funding (i.e., federal, slate, and local) but exclude employeebenefits. Generally, retired teachers rehired to teach receive less compensation than non-retired teachersand ROTC teachers receive more compensation because of a federal supplement. Therefore, theseteachers are excluded from the computation in the last column. This schedule excludes day-to-daysubstitutes and temporary employees.

101


Class Size CharacteristicsAs of October 1,2005

Schedule 6

School Type

Elementary

Elementary Activity Classes

Middle/Jr. High

Mddle/Jr. High Activity Classes

High

High Activity Classes

Combination

Combination Activity Classes

Class Size Range

1-20

Percent

87

0

68

65

76

90

78

81

Number

260

0

60

11

109

27

362

68

21-26

Percent

1.3

0

28

24

22

10

19

16

Number

4

0

25

4

31

3

89

13

27-33

Percent

4.4

27

4

5.5

2

0

3

1

Number

13

4

3

1

3

0

14

1

34+

Percent

7.3

73

0

5.5

0

0

0

2

Number

22

11

0

1

0

0

0

2

Note: The Board of Elementary and Secondary Education has set specific limits on the maximum size ofclasses at various grade levels. The maximum enrollment in grades K-3 is 26 students and maximumenrollment in grades 4-12 is 33 students. These limits do not apply to activity classes such as physicaleducation, chorus, band, and other classes without maximum enrollment standards. Therefore, these classesare included only as separate line items.

102

Schedule 7


Louisiana Educational Assessment Program (LEAP) for the 21st CenturyFor the Year Ended June 30,2006

ResultsStudents

Grade 4

Advanced

Mastery

Basic

Approaching Baste

Unsatisfactory

Total

English Language Arts

2006Number (Percent

0 0

18 9

95 47

43 24

43 21

204

2005Number Percent

4 2

24 12

90 44

54 26

33 16

205

2004Number | Percent

0 0

25 13

79 41

52 27

38 20

194

Mathematics


4 2

25 12

90 44

40 20

45 22

204

2005Number) Percent

4 2

32 16

82 40

45 22

42 20

205

2004Number [Percent

5 3

27 14

70 36

42 22

50 26

194

ResultsStudents

GradesAdvancedMasteryBasicApproaching Basic

Unsatisfactory

Total

Science

2006Number Percent

2 118 954 2675 36

61 29

210

2005Number) Percent

3 220 162 3465 36

30 17

180

2004Number) Percent

0 019 858 2654 24

95 42

226

Social Studies

2006Number) Percent

0 012 656 2774 35

68 32

210

2005Number Percent

0 016 877 3656 26

64 30

213

2004Number Percent

1 011 568 3074 33

71 32

225

103


The Graduation Exit Exam for the 21st CenturyFor the Year Ended June 30,2006

Schedule 8

Results

Students

Grade 10

Advanced

Mastery

Basic

Approaching Basic

Unsatisfactory

Total


2006

Number | Percent

0 0

8 5

73 43

41 24

48 28

170

2005Number Percent

0 0

15 10

58 39

54 37

20 14

147

2004Number Percent

2 1

20 11

71 39

60 33

30 16

183

Mathematics |

2006

Number | Percent

6 4

19 11

59 35

39 23

46 27

169

2005

Number) Percent

3 2

14 10

51 35

28 19

50 34

146

2004

Number | Percent

9 5

24 13

74 41

31 17

43 24

181

Results

Students

Grade 11

Advanced

Mastery

Basic

Approaching Bask:

Unsatisfactory

Total

Science

2006

Number [Percent

6 5

9 7

23 18

58 46

31 24

127

2005Number Percent

1 1

17 11

61 40

44 29

28 19

151

2004

Number | Percent

2 1

15 10

64 42

52 34

19 13

152

Social Studies |

2006Number Percent

1 1

11 9

51 40

34 27

30 24

127

2005

Number Percent

1 1

9 6

59 40

48 32

31 21

148

2004

Number | Percent

0 0

8 5

81 53

40 26

23 15

152

104

Schedule 9


The IOWA and (LEAP TestsFor the Year Ended June 30,2006

IOWA Test

Iowa Test of Basic Skills (ITBS)Grades

Grades

Grade 6Grade/

Tests of Educational Development (ITED)

Grades

Composite

2005

52504246

41

2004

51464446

44

Scores are reported by National Percentile Rank. A student's National Percentiie Rank shows thestudent's relative position or rank as compared to a large, representative sample of students in thesame grade from the entire nation. A student with a score of 72 indicates that the student scored thesame of better than 72 percent of the students in the norm group.

(LEAP Test

District Achievement Level Result*Students

Brade3

AdvancedMasteryBasicApproaching BasteUnsatisfactory

Totai

English Language Arts2006

Number | Percent

1 121 12

79 45

41 2334 19

176

Mathematics2006

Number f Percent

5 3

21 12

81 46

40 23

29 16

176

Science2006

Number | Percent

2 1

21 12

72 41

63 36

18 10

176

Sotial Studies2006

Number | Percent

0 0

15 9

76 43

64 31

31 18

176

District Achievement Level ResultsStudents

QradesAdvancedMasteryBasteApproaching BasteUnsatisfactory

Total

English language Arts2006

Number J Percent

2 1

22 12

76 42

51 28

26 16

179

Mathematics2006

Number j Percent

2 125 14

86 47

33 1834 19

179

science2006

Number | Percent

0 013 7

61 34

71 40

34 19

179

Social Studies2006

Number) Percent

3 2

5 3

72 40

52 29

47 26

179

District Achievement Level Result*;Students

GradesAdvancedMasteryBasicApproaching BasicUnsatisfactory

Total

English Language Arts2006

Number j Percent

2 121 12

77 45

50 29

21 12

171

Mathematics2006

Number | Percent

3 212 7

60 47

36 22

39 22

171

Science2006

Number | Percent

0 o15 964 37

66 39

26 15

171

Social Studies


3 26 4

67 30

54 32

41 24

171

105

District Achievement Lev*! ResultsStudentsGrade 7

Advanced

Mastery

BasicApproaching Baste

UnsatisfactoryTotal



4 219 9

88 43

76 37

19 9

206

Mathematics


1 0

5 2

81 39

64 31

65 27

206

Science


0 0

9 4

45 22

107 62

45 22

206

Social Studies


1 0

2 1

89 43

70 34

44 21

206

District Achievement Level ResultsStudents

orsdeSAdvanced

Mastery

BasicApproaching Baste

Unsatisfactory

Tola*

Enallftti Language Arts


1 1

19 10

68 34

89 45

21 11

toa

Mathematics


4 2

15 8

79 42

46 24

46 24

189

106

claiborne parish school board - louisianaapp1.lla.la.gov/publicreports.nsf/95c278cc197f0efc... ·...

Documents