pineville city court audit

8/19/2019 Pineville City Court audit

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PINEVILLE CITY COURT

Pineville,

Louisiana

ANNUAL

FINANCIAL

REPORT

For the

Year

Ended December

31,2014


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MEMBER

AMERICAN INSTITUTE OF

CERTIFIED PUBLIC A CCO U N TA N TS

MEMBER

SOCIETY OF

LOUISIANA

CERTIFIED PUBUC ACCOUNTANTS

D EBEVEC

CERTIFIED PUBLIC A C C OU NT A NT

INDEPENDENT

AUDITOR S

REPORT

The Honorable G ary Hays

Pineville City Court Judge

Pineville, Louisiana

iwas engaged o

audit the

accompanying financial statements of

the

govern men tal activities, each major fund

and the

aggregate

remaining

fund informa tion

of Pineville

City Court, as

of and

for

the

year ended December

31.

2014, and

the

related

notes

to

the financial

statements,

which collectively

comprise the Court s basic

financial statements

as

listed

in the table

of

contents.

Managem ent s Responsibility

for

the Financiai Statements

Management

is responsible

for the

preparation

and fair

presentation of

these financial statements in

accordance

with accounting

principles

generally

accepted in

the United States of

America; this

includes the

design, implementation, and maintenance

of

internal control relevant

to

the preparation and fair presentation

of

financial statements that

are free from material

misstatement,

whether due to fraud or

error.

Auditor s Responsibility

M y responsibility Is to express

opinions

on these

financial

statements

based

on conducting

the

audit

in

accordance with auditing standards generally accepted in the United States of

America

and the standards

applicable

to financial audits contained in Government Auditing Standards, issued by theComptroller General

of the United

States. Because

of

the

matters described In the basis for disclaimer of opinion paragraph,

however, am not able to obtain sufficient appropriate audit evidence to provide

a

basis for

an

audit

opinion

Basis

for

isclaimer of Opinion

Detailed accounts payable records or

a

formal written agreement on the amounts due to the City o f Pineville

for

the

expenses paid on behalf of the Pineville City Court have not been m aintained and certain prior-year

records and

supporting

data were not

available

for our audit. Also,

the

court has over paid

the wages

and

benefits

of the

Judge and detailed accounts receivable records have not been ma intained

for

current and prior

year

amounts. Therefore, we were notable to obtain sufficientappropriate

audit

evidence about

the

amounts

of

accounts payable and

accounts receivable

that are recorded in

the accompanying

Balance

Sheet and

Statement of

Net Assets

at

December

31,

2014 (stated at (-0-) and

10,988

respectively), as well as

the

amount

of

expenses for over paid

wages

and benefits and expenses paid

by the

City

of

Pineville that

may

have to be reimbursed by

the

Pineville City

Court

for

the year

then ended

December 31,

2014 (stated at

19,989).

1220 WINDSOR

PLACE* ALEXANDRIA, IXIUISIAN A 713 03 *(3 18)443-3

97

7


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isclaimerof Opinion

Because of the significance of the matter described In the Basis for Disclaimer of Opinion paragraph, I have

not been able

to

obtain sufficient appropriate audit evidence

to

provide

a

basis

for

an audit opinion.

Accordingly, do not express an opinion on the financial statements referred to in the first paragraph.

Other Matters

equired Supplementary nformation

Ma nagem ent has om itted the management s discussion and analysis that accounting principles generally

accepted

In

the

United

States of

America

require to

be

presented to supplem ent

the

basic financial

statements.

Such missing

information,

although not a

part

of

the

basic financial statem ents, is required by the Governmental

Accounting Standards Board, who considers it to be an essential part of financ ial

reporting

for placing the

basic

financial statements in a n appropriate operational, economic, or historical

context.

My disclaimer of

opinion

on

the

basic financial

statements is

not affected by this missing information.

Accounting

principles

generally

accepted

in the United

States

of America

require

that the

budgetary

comparison

information

on

pages 27-26 be

presented

to supplement the basic financial statements. Such information,

although not a part of the basic financial statements, is

required by

the Governmental Accounting Standards

Board, who considers

it to be an essential

part

of

financial reporting for placing the

basic

financial statements

in an appropriate

operational,

econom ic, or historical context.

have

applied certain limited proce dures to the

required

supplementary

information in accordance with audit ing s tandards generally accepted in

the

United

States of

America,

which consisted

of inquiries of management

about

the methods of preparing the information

and

comp aring the information

forconsistency

with managem ent's

responses to

my inquiries,

the

basic financial

statements,

and other knowledge

I obtained

during

my

audit of

the

basic financial

statements. Ido not express

an opinion

or provide any

assurance

on

the

information

because the

limited

procedures do

not

provide me

with

sufficient evidence

to

express an

opinion or

provide

any assurance.

ther Information

The Schedule of Com pensation, Benefits and Other Payments to Agency Head or Chief Executive Officer

Is supplemental other information presented for purposes of additional analysis and is not a required part

of the basic financial statements.

This supplemental information has been subjected

to the

auditing procedures applied in the

audit

ofthe basic

financial

statements

and certain additional procedures, includingcomparing and reconciling such nformation

directly to

the underlying accounting and

other records used to prepare the basic financial statements

or to

the basic financial statements themselves, and other

additional

procedures in accordance with auditing

standards generally accepted in

the

United States

of

America. Because

ofthe

matter discussed in

the basis

for disclaimer

of opinion section above,

it is inappropriate to ,

and

I

do

not

express an

opinion

on

the

Schedule

of

Compensation,

Benefits and

Other Payments to Agency Head in

relation

to

the

basic

financial

statements as a whole.


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Other Reporting Required by Government Auditing Standards

In accordance

with Governmen t Auditing

Standards, I

have

also

issued

my

report

dated

January 31, 2016,

on

my

consideration

of

the

Pineville

City Court's internal

control

over

financial

reporting

and

on my

tests of

its compliance with

certain provisions

of laws,

regulations,

contracts, and grant

agreements

and

other

matters. The

purpose

of that

report

is to describe the scope of

my testing

of

internal

control

over financial

reporting and

compliance

and

the results

of that

testing,

and not

to

provide

an opinion

on internal control

over

financial

reporting

or on compliance. That

report

is

an integral part

of

an

audit performed

in

accordancewith

Government AuditingStandards In considering Pineville City

Court s

internal control o ver financial

reporting

and compliance.

Dej^vec,

C P A

illy D e

pevec,

C P A

Alexandria, Louisiana

January

31,

2016


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Pinevi i le , Louisiana

STATEMENT OF N E T P O S I T IO N

G o v e r n m e n t a l Activit ies

D e c e m b e r

31,2014

A S S E T S

ASSETS:

C A S H

A N D

C AS H E Q U I V A L E N T S

93,045

ACCOUNTS

R E CE IVA B L E 5 ,3 3 5

DUE

FR OM OT HE R FUND S 30,542

DUE F R O M

E M P L O Y E E

10,98 8

CAPITAL ASSETS,

NET OF A C C U M U L A T E D D E P R E C I A T I O N 6L894

TOTAL

ASSETS

$201.804

L I A B I L I T I E S

LIABILITIES:

A C C O U N T S P A Y A B L E

$

1 2 . 2 1 1

TOTAL

LIABILITIES 1 2 . 2 1 1

NET

P O S I T I O N :

INVESTMENT

IN C A P I T A L

ASSETS 61,894

RESTRICTED

F O R

B U I L D IN G M A I N T E N A N C EM M P R O V E M E N T S 79,076

UNRESTRICTED

48.623

TOTAL NET POSITION $ 18 9.5 93

The

accompanying

notes

are a n integral

part of this financial

statement.


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PI NEVI L L E C I T Y

C O U R T

Pinevi l le ,

Louisiana

S T A T E M E N T

OF

A C T I V I T I E S

G o v e r n m e n t a l

Activities

F o r the Y ea r E n d e d D e c e m b e r 31,2014

E X P E N S E S

Genera l G o v e r n m e n t :

Salaries and

Fringe

benef i ts

On-behal f

salaries

and benef i ts paid

Legal

& P rofessional

Dues a n d

Subscriptions

Computer Fees

Lease & M a i n ten a n ce Costs

Office

Supplies

Travel & Sem i n a rs

Miscel laneous

Depreciat ion

Total exp en s es

PROGRAM

REVENUES

Charges for Services

Opera t ing Grants a n d Contributions

Tota l program revenues

184 ,481

19,989

5 8 ,220

1 ,4 4 0

21 ,4 4 3

14 ,3 3 2

4,389

12 ,4 4 2

9,73 2

14.863

3 4 1.3 3 1

3 6 5 , 4 0 5

1 9 . 9 8 9

3 8 5 . 3 9 4

Net

program

revenues

G E N E R A L

R E V E N U E S

44,063

Interest earned

Miscel laneous

Tota l Genera l Revenue

Change

in

Net Posi t ion

N E T P O S I T I O N B E G I N N I N G

OF

Y E A R

N E T P O S I T I O N END

OF

YEAR

1 2

6.909

6.921

50,984

13 8 .609

$

189.593

The

accompanying notes

are

an

integral part

of this

financial stalenienl.


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PINEVILLE

CITY

COURT

Pineviile, Louisiana

BALANCE SHEET GOVERNMENTAL FUNDS

December

31, 2014

General

Fund

Building

Capi ta l

Projects

Fu n d

Total

Governmental

Funds

A S S ETS

Cash in bank

Accounts Receivable

Due f rom employee

Due

f rom A g e n c y

funds

Total assets

$ 18 , 122

5 ,335

10 , 98 8

26.389

S

6 0 . 8 3 4

7 4 , 9 2 3

4 . 1 5 3

7 9 . 0 7 6

$93,045

5 ,335

10,988

30.542

$

139.910

LIABILITIES A N D FUND BALANCES

Liabilities:

Accounts Payable

Total

liabilities

Fund Balances:

Restricted

for Building Maint.

And Improvements

Unassigned

Total Fund Balances

TOTAL

LIABILITIES

AND FUND BALANCES

$ 12.21

1 2 .2 1 1

48.623

48.623

$ 60.834

79,076

79.076

$ 79.076

$

12 . 211

1 2 .2 1 1

79,076

48.623

127.699

$ 139.910

The accompanying notes are an integral

part

of these financial slalemcnls.


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PIN EV ILLE C I TY C O U R T

Pinevi l le , Louisiana

S T A T E M E N T

OF

GOVERNMENTAL F U N D R E V E N U E S , EXPENDITURES, A N D

C H A N G E S IN F U N D B A L A N C E S

F o r th e year e n d e d D e c e m b e r 31,2014

R E V E N U E S

Court

fees , f ines , and

costs

Court costs

Civil

fees-d iscret ionary

Charges

for services

Proba t ion fees

On-beh aif sa la r ies and benef i ts received

Interest

In com e

Miscel laneous

T ota l R even ues

EXPENDITURES

CURRENT-Geiieral Government:

Salaries

a n d Fringe Benef i ts

On-beh a lf sa la r ies

and

benef i ts pa id

Contract Services

Legal &

Professional

Dues

and Subscrip t ions

Computer fees

Lease

& M a i n ten a n ce Costs

Office Supplies

Travel & Sem i n a rs

Miscel laneous

Tota l Curren t Expenditures

C A P I T A L O U T L A Y

Tota l Expenditures

General

Fund

$122,682

102 ,86 1

78,683

19,989

2

6.909

3 3 1.126

184 ,481

19,989

5 8 ,220

1 ,4 4 0

4,389

12 ,4 4 2

9.73 2

290 ,693

290.693

B ui ld i n g

Capital

Projects

Fun d

$61,179

1 0

61.189

21,443

14,332

35,775

3.983

39.758

Total

183 ,86 1

102 ,8 61

78 ,68 3

19 ,98 9

1 2

6.909

3 92.3 15

184,481

19,989

5 8 ,220

1 ,4 4 0

21 ,4 4 3

14 ,3 3 2

4,389

12 ,4 4 2

9.73 2

326,468

3.983

3 3 0.4 5 1

(Cont inued)

The accompanying notes are an integral part of

this

financial s ta tement .


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Pinevi l le , Louisiana

STATEMENT OF GOVERNMENTAL F U N D R E V E N U E S , EXPENDITURES, A N D

CHANGES IN F U N D B A L A N C E S

F o r

the year

e n d e d Decem ber

31,

2014

(CONT INUE D )

General

Fund

B ui ld i n g

Capi ta l

Projects

Fund Tota l

EX ESS OF

REVENUE

OVER

UNDER) XPENDITURES 4 0 , 4 3 3

2 1 , 4 3 1 6 1 , 8 6 4

OTHER

F I N AN C I N G

SOURCES

Tota l other f inancing Sources

0 0 0

NET C H A N G E IN F U N D B A L A N C E S

FUND B A L A NCE ,

B E G I N N I N G

F U N D

B A L A N C E ,

E N D I N G

4 0,4 3 3

8 .190

$ 48.623

21,431

57.645

$ 79.076

61,864

65.835

$ 127.699

The accompanying

notes

are

an integral pan of

this

financial

statement.


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PINEVILLE

CITY COURT

Pinevi l le ,

Louisiana

R E C O N C I L I A T I O N

OF

THE STATEMENT OF R E V E N U E S ,

EXPENDITURES

A N D C H A N G E S IN

F U N D B A L A N C E S

OF G O V E R N M E N T A L

F U N D S

T O

THE STATEMENT OF

A C T I V I T I E S

F o r the Year

E n d e d

D e c e m b e r 31,2014

Net change in fu nd

balances-to ta l

govern m en ta l funds

(fund financial

sta tements)

$ 61,864

A m oun t s

reported for

g o ver nmen t a l activities in the s t a t em en t of activi t ies

(government-wide

financial s ta tements) a re

different because:

Govern m en ta l funds report capi ta l out lays as expenditures in

the

individua l fund. Governm ent act ivi t ies

report depreciation

exp en s e

to allocate the cost of those capi ta l assets over the es t imated useful

Capi ta l out lay 3,983

Deprecia t ion expense

(14,863)

(10,880)

Change in

net

posit ion of

govern m en ta l activities

(govern m en t - w i d e f inancial

statements)

$

50.984

The accompanying

notes are an integral

part

of this reconciliation.

1 0


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PINEVILLE CITY

COURT


COMBINING STATEMENT

OF FIDUCIARY NET POSITION-AGENCY

FUNDS

December

31,2014

A S S E T S

Assets:

Cash

Due from Others

Total Assets

CIVIL

FEES

FUND

$ 527,687

C R I M I N A L

B O N D S

FUND

$ 1 ,061

FINES AND

COURT

COSTS

FUND

$30,358

184

APPEAL

BONDS

FUND

$ 53,570

T O T A L

$612,676

184

$ 527.687 $ 1 .061 $ 30.542

$ 53.570

$ 612.860

L I A B IL I T I E S A N D

N E T

ASSETS

Liabil i t ies:

Advanced court costs

D u e to

judge

Due

to

General

Fund

Due to building Capital Projects

fund

Due

to

others

Total Liabilit ies

N e t Position

Total

Net

Position

459,227

68,460

$

527.687

$ 1.061

$ 1.061

$

26,389

4,153

$

30.542

$ 53.570

$

53.570

0

$ 459,227

68,460

26,389

4,153

54 .631

$ 612.860

The accompanying notes are an integral part of

this f inancial

statement.

1 1


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P I N E V I L L E CITY

COURT

PINEVILLE, LOUISIANA

N O T E S TO THE F I N A N C I A L STATEMENTS

FOR

THE

Y E A R

E N D E D DECEMBER 31, 2014

I N T R O D U C T I O N

The

financia l

statements of the PIN E V ILLE

C I T Y

COURT have

b e e n

prepared in

conformi ty

with

general ly accepted account ing pr inc ip le s (GAAP) as

applied

to

governmenta l

units. The

Govermnenta l

Accounting Standards Board (GASB) is the accepted standard-se t t ing

body

for

establishing

governmental accounting an d

financia l

reporting principles.

The more significant of

the Court's accounting policies are descr ibed be low.

1. SUMMARY

O F S IG N I F I C A N T

A C C O U N T I N G POLICIES

A .

Reporting

Enti ty

Pineville

City

Court

(the Court), a component unit of

the

City of Pinevil le ,

Louisiana,

was established u n d e r the authori ty of Louisiana Revised

Statuses

13;1871-2512.

Its

territorial jurisdict ion extends throughout Wards 9, 10, a n d

1 1

of Rapides Parish

in

which the

city of Pineville is located. TheCourt i s c o m p o s e d of a City Judge

(elected)

a n d a clerk of court

(appoin ted

by

the City Judge).

Funds

f lowing

through

the Court consist mainly of

court

costs

an d penal t ies in

criminal

cases, proba t ion fees, a n d deposits in civil cases. In all criminal

matters ,

the judge

assesses court costs

in

accordance

with state statutes.

The judge

uses these revenues

to

de fray

the operating expenses

of

the court

or

for the

p a y m e n t

of clerica l

fees

a n d

similar expenditures

as

approved by the judge.

The financial statements of

the

Court have been prepared in conformi ty with

accounting

principles general ly accepted in the United Sta tes of America (GAAP) as

applied

to

g o v e r n m e n t a l

units. The

Governmental

Account ing

Standards

Board

(GASB) is the

accep ted s t andard

settingb o d y

for

establishing governmenta l

accounting

and

financia l report ing principles.

The

GASB

periodical ly

updates its codification of

the

existing G o v e r n m e n t a l A c c o u n t in g a n d

Financial Report ing

Standards , w h i c h

along

with subsequent

GASB p r o n o u n c e m e n t s (Statements

a n d

interpretations),

constitutes

GAAP for governm enta l uni t s .

In evaluating

how

to

de f ine

the entity for

financial p u r p o s e s , m a n a g e m e n t h a s

considered ail potent ia l component units. The decision to inc lude a potential

component

unit in the

report ing

entity was

m a d e

by

applying

the

criteria

set forth in

GAAP. Generally, c o m p o n e n t units are legal ly separate organizat ions

for

w h i c h

the

elected

officials or appoin ted board membersof the pr imary g o v e r n m e n t are f inancial ly

accountable.

12


16/64


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NOTES

TO THE FINANCIAL STATEMENTS

FOR

THE

YEAR ENDED DECEMBER31,

2014

(CONTINUED)

B. Presentation (contd.)

G o ve r n m e n t - Wide Financial S t a t e m e n t s

The Sta tement of

Activities

presents a c o m p a r i s o n between

direct expenses a n d

program

revenues

for each function of the Court's governmenta l activities. Direct

expenses

are

those

that

are specifically

associa ted with

a function a n d therefore

clearly

ident if iable

to

tha t pa rt icular

function. The

Cour t does not

allocate indirect

expenses

to

funct ions

in

the

Statement

of Activi t ies. The Sta tem ent of

Activities

reports the

expenses to

funct ion

offset b y

program revenues d i rect ly conn ected

with the

funct ional

program.

A

funct ion

is

an

assembly of similar

activities

a n d may include portionsof

a fund or summarize more than onefund tocapture the expenses a n d program revenues

associa ted

wi th

a distinct functional

act ivi ty. Program

revenues

include: (1)

charges

for services

which

report

court costs an d

proba t ion

fees;

(2)

operating

grants

a n d

contributionsw h i c h finance

amiua l

opera t ing activities inc luding restricted inves tment

income , if any; and (3) capital grants a n d cont r ibut ions w hich fund the acquisition,

construction,

or

rehabilitation of capital assets,

if

any. These

revenues are

subject

to

ex te rna l ly imposed restrictions to these program

uses. For

identifying

to

w h i c h

function program

revenue pertains, the de te rmining factor for charges for services is

w hich funct ion gen e ra te s

the revenue.

For

grants

a n d

contributions,

the

de te rmining

factor is to w h i c h functions the revenues are restricted. Revenues not classified as

program revenues

are

presented as genera l

revenues ,

w h i c h

include interest a n d

other

unrestr icted reve nues. The

comparison of

program revenues

a n d expenses

ident if ies

the

extent

to

w h i c h e a c h p r o g r a m is se lf- financing or d r a w s f r o m

the

gene ra l revenues

of the Court.

C. Fund Financia l Statements

The Court uses

the funds a n d account

groups

to

report on i ts f inan cia l posi t ion

a n d

the

resultsof itsoperations. F u n d

accounting

is

des igned to

demonstratel ega l com pl iance

and to

aid

financial

management

b y

segregat ing

transactions

relating

to

certa in

g o v e r n m e n t

functions or

activities. A fu n d

is

a separa te

accounting entity

with a se lf-

ba lancing

set

of accounts.

14


18/64

PINEVILLE

C I T Y

COURT

PINEVILLE, L O U I S I A N A

NOTES

TO THE

FINANCIAL

STATEMENTS

FOR

THE

YEAR ENDED DECEMBER 31,

2014

(CONTINUED)

G o ve r n m e n t a l Funds

Governmenta l

funds account for

all

or

m o s t of

the Court'activities. These

funds

focus

on the sources, uses, and balan ces of current

financial

resources. Expendable asse ts are

assigned to the various governm enta l funds according to the purposes for which they

m a y be

used.

Current

liabilities are

assigned

to the

fund f rom

which

they

wil l be paid.

Thedi f fe rence be tw een a governmenta l

fund's

asse ts

a n d liabilitiesis

reported asfund

balance.

In

general, fund

balan ce represents

the accum ula ted

expendable

resources

that

m a y b e used to finance

future period

programs or operations

of

the

Court .

The

fund

ba lances are classified into five poss ib le ca tegorie s w hich focus on

the

constra ints of

spending . The categories are

non spendab le ,

restr icted, committed, ass igned a n d

unassigned.

The following are the Court's

governmenta l fhnds:

General

Fund

The

Genera l

Fund,

as

provided

by

sta te law ,

is the

principal fund

of the Court a n d

accounts for

the operations

for the

Court's

office. The various

fees

and cha rges due to

the Court's office are accounted for in

this

fund. Gene ra l operating expendi tures are

paid

f r o m

this fund.

Building Capital Projects Fund

The Bui ld ing Capi ta l

Projects

Fund accounts

for

court

fees assessed

under Revised

Statute 13:1910. All monies collected under this statute

are dedicated

exclus ive ly

to

the acquisition, leasing, construction, equipping , a n d maintenanceof n e w an d existing

city

courtsa n d

for h e

maintenancea n d p a y m e n t

of any b o n d

indebtedness

on

any such

existing facilities. Management plans to use these fees for

acquisition

of equipment

a n d bui ld ing renovations a n d improvements .

Fiduciary Funds

Fiduciary

funds account for assetshe ld on beha l f of outside parties,a n d

focuses

on

Net

Position a n d changes

in

Net Position.

1 5


19/64

PINEVILLE

C I T Y

COURT

PINEVILLE, L O U I S I A N A

NOTES TO THE

FINANCIAL

STATEMENTS

FOR THE

YEAR

ENDED DECEMBER

31, 2014

(CONTINUED)

The fiduciary fund

includes

the fol lowing:

gency

Funds

All

a g e n c y

funds are custodial in

nature

(assets

equal liabilities)

a n d d o not involve

m e a s u r e m e n t of resultsofopera t ions, but use the modified accrual basis of accounting.

T h e a g e n c y

funds the court

m ainta ins a re the

following:

civil

fees, criminal bonds,

f ines an d cour t costs a n d a p p e a l

bonds.

D .

M e a s u r e m e n t Focus/Basis of Account ing

F u n d Financial Statements(FFS)

The accounting a n d financial

report ing

t rea tment ap pl ied to a fund is

de te rmined

b y

i t s measurement focus. All gove rnmenta l

funds

are accounted for using a

cuiTent

financia l

resources measurement

focus.

With this measurement focus, only current

asse ts and

cuiTent liabilities are

genera l ly include d on

the

balance sheet. The

statement

of revenues, expenditures, a n d c h a n g e s in fund ba lance reports onthe sources a n d uses

of current financial resources. The

m odified accrual

basis of accounting is used by the

fund financial

statements

(FFS). Under

the

modif ied

accrual

basis of account ing ,

revenues

are

recognized when suscept ib le

to

accrual

(i.e., when

t hey become

both

m e a s u ra b l e a n d available).

"Measurab le"

means collectible within the current

period

or soon enough thereafter

to

be

used to

p a y

liabilities

of the current

period.

D . Measurement Focus/Basis of Account ing (contd.)

The

governm enta l funds use the fo l low ing prac t ices in recording revenues a n d

expenditures:

Revenues

The hotel motel taxes

are

recorded in the year in w h i c h

they are earned.

Interest earnings on time deposits are recorded when the time deposi ts have

matured a n d the interest is avai lable .

Substantially

all

other revenues are recorded when received.

1 6


20/64


PINEVILLE,

LOUISIANA

NOTES TO THE FINANCIAL STATEMENTS

FOR

THE YEAR ENDED

DECEMBER

31,

2014

(CONTINUED

D . Measurement Focus/Basis

of

Accounting

(contd.)

Expenditures

Purchases of

various opera t ing

supplies are recorded

as

expendi tures in the

accounting

per iod they a re purchased. Com pensa ted absences are

recognized

as expenditures when leave is actual ly taken or

the

employees

(or

heirs) are

pa id

for accrued leave upon retirement or death.

Salaries are recorded

as

expenditures w h e n earned.

Principal and interest on gene ra l long- te rm deb t

are recognized

when due.

Substantially all other expenditures

are

recognized w h e n the related

fund

liability has

been

incurred.

Other Financins Sources

Uses)

Transfers

be tween funds tha t

are not

e x p e c t e d to

be

repaid, sa les

ofassets a n d

capitalized leases a re accounted foras other f inancing sources (uses). These

other financing

sources

(uses) are recognized at the time

the

underlying

events occur.

D . Measurement Focus/Basis of

Account ing (contd.)

Government Wide Financial Statements ( G W F S )

The Statement of Net

Position a n d the Statement

of

Activities

display

information

about

the Court

as a whole .

T hese statements

include a l l

the

financial activities of the

Alexandria/Pineville Area Convent ion

and

Visi tors Court. It doesn't inc lude the

fiduciary

funds. Informa t ion conta ined

in these statements

reflect the

economic

resources m e a s u r e m e n t

focusan d

the accrual basisof accounting.

Revenues ,

expenses,

gains, losses,

assets,de fe r red out f lows

of resources, liabilities a n d in f lows of resources

f r o m exchange

or exchange ike transactions

a re recognized when the exchang e

occurs

(regardless of

when

cash isreceived or

disbursed).

Revenues,expenses, gains, losses,

assets, deferred outflows of

resources,

liabilities a n d deferred in f lows of resources

resulting from non-exchange transactions are

recognized

in accordance with the

requirements

of

Section

N50.

17


21/64


PINEVILLE,

LOUISIANA

NOTES TO THE FINANCIALSTATEMENTS

FOR THE

YEAR

ENDED DECEMBER

31,

2014

(CONTINUED

D .

Measurement

Focus/Basis of

Accounting (contd.)

Government Wide Financial Statements ( G W F S )

Prosram Revenues

Program revenues inc luded in the Statement of Activi t ies are

der ived

direct ly from

users

as

a

fee

for services an d in te rgovernmenta l revenues for

providing tourism

services;

program revenues

reduce the cost

of

the

function to

b e

f inanced f r o m

general

revenues.

E . Budgetary Practice

Budgets are a d o p t e d on the cash ba sis of accounting for the G enera l Fund.

On-behalf

payments for salaries,

re la ted ben efi ts ,

a n d insurance

pa id

b y

the City of Pineville ai-e

not

includedin the

repor ted

budget . Actual amounts are adjusted fo r changes in

routine

accruals for receivables

an d

payab les because theses changes are

immater i a l

to the

financial statements.

All

annual appropriations lapse at the e n d of

the

fiscal year.

Budgets are

prepared

by

the

clerk

of

court

and subm i tted to

the judge

for approva l

prior

to the beg imi ing of

the Court's

fiscal year. All budg ets arecontrolled at the fund level.

As conditions warrant , budge tary amendments are prepared

by

the

clerk if

court and

submitted to the

judge

for

his

approval.

B u d g e t e d a m o u n t s s h o w n in

the

accompanying

budge ta ry comp ar ison

schedules

re f lec t a l l amend m ents ,

if

any.

F . Cash

and

Cash

Equivalents

Under state law,

the

Court m a t deposi t fundswith a fiscal agent bank organized under

the lawsof the

State

of

Louisiana ,

the lawsof

a n y

other state in

the Union ,

orthe laws

of

the

Uni ted

States.

Cash c ons isted

of amounts in demand deposi t

accounts.

In thegovernmental

fund

an d a g e n c y funds,

cash

a n d cashequivalents include

amounts

in all

demand

deposits,

interest

bearing

d e m a n d

deposits a n d

t ime

deposits with

original maturities of th ree months or less f r o m the date of acquisition.

G .

Accounts

Receivable

Receivables are charged aga ins t income

as

they become uncollect ible . In the opinion

ofmanagement,

all

accounts receivable werecollectible and an a l low ance for doubtful

accounts

was

not considered necessary.

18


22/64

P I N E V I L L E

C I T Y COURT

P I N E V I L L E , LOUISIANA


FOR THE YEAR

ENDED DECEMBER

31, 2014

(CONTINUED

H. Short- term Inter fund Rece ivablcs /Payables

Duiing the courseof opera t ions,

numerous

transactions occur

b e t w e e n

individual flinds

for

goods provided

or

services

rendered. These receivablesand payables are classified

as due from/to othe r funds in the fund financial statements. These

interfund

rece ivab le s /payab les are el iminated for reporting in the Sta tement of Net Position.

1.

Prepaid

Expenses

In the Government-Wide Financial Statements, expenses paid for the fo l lowing fiscal

year ,

if any, are repor ted

as

prepa id expenses since the expense

benefi ts

the next fiscal

year.

In the

Fund Financia l

Statements,

these

prepa id items

are recorded as

expenditures when paid.

H. Capital Assets

In the Government-Wide Financial Statements,

capita l

assets

are capi ta l ized

and

depreciated

on a

straight-line

method ove r

their estimated

useful

lives. The Court

has

adopted

a capitalization threshold of $250 for report ing purposes. All purchased

capital assets

are

va lued at cost where historica l

records are

ava i lab le and

at

an

estimated historica l cost w h e r e n o historical records

exist.

Dona ted capi tal assets, if

any, are valued at

their

estimatedfair marke t valueon the date

received.

Expenditures

tha t

extend the useful lives of

capita l

assets

b e y o n d

their

ini t ia l est imated

useful

lives

or

improve their

efficiency or capac i ty are capitalized, whereasexpendi tures for repairs

a n d maintenance

are

expensed.

All capital assets are deprecia ted us ing

the

straight-line method

over

th following

useful

lives:

Est ima ted

Description

Lives

Furniture & Equipment

7 - 1 0

years

Office

Equipment 3-7

years

Records Storage Building 1 5 years

Leasehold

Improvements 39 years

1 9


23/64


PINEVILLE,

LOUISIANA

NOTES TO THE FINANCIAL

STATEMENTS

FOR THE

YEAR ENDED

DECEMBER

31, 2014

(CONTINUED

H.

Capital

Assets (contd.)

in the Fund Financia l S ta temen ts , capi ta l assets are not capi ta l ized in the funds used

to

acquire or cons t ruc t them.

Instead,

capital acquisition an d construct ion are

reflected as expenditures

in

g o v e r n m e n t a l funds. N o

provision

is made for

deprecation on capita l asse ts in the

F u n d

Financial Statements since the full cost is

recorded as

expenditures at

the t ime

of purchase.

1. Advanced Court

C o st s

A d v a n c e d court costs presen ted in the Statementof Fiduciary Net Posit ions represent

m o n e y

received in

connect ion wi th c iv i l suits. The plaint iff

of

each civi l suit

is

required to make a n a d v a n c e p a y m e n t to

cover the

cost incurred

by

the court

in

processing

the

suit. These cash advances remain in the advanced cour t cost account

until they are ea rned , at

w h i c h

time

they

are disbursed

to

the proper entities, or

until

the case

has b e e n dismissed

a n d

the rem aining

amount

refunded.

J.

Restricted

N et Posi t ion

For

government-wide

Sta tement

of Net Position,

Net Posi t ion are reported as

restricted when constraints placed on net asset use are either:

1.

ex te rna l ly im posed b y

creditors (such

as

debt

covenants) ,

grantors,

contributors, or laws or regulations of othe r gove rnments ; and

2.

i m p o s e d

by

law th rough constitutional provisions or enabling

legisla t ion.

K . Eu n d Equity

In the

fund

financia l statements, g o v e r m n e n t a l funds report reservat ions of fund

balance for amounts

that

are not avai lable for

appropr ia t ion

or are legal ly

restr icted

b y outside

parties for

use

for

a

specific purpose.

A n y designat ions of fund

balance

represent tentative m a n a g e m e n t p l a n s thatare subject to change . The des igna t ions are

as follows:

2 0


24/64


PINEVILLE,

LOUISIANA

NOTES TOTHE

FINANCIAL

STATEMENTS

FOR

THE YEAR

ENDED DECEMBER 31,

2014

(CONTINUED

L . F u n d E q u i t y

(contd.)

1 Non-spendable:

A m o u n t s

that

are

not in spendable fo r m or

are

legally or

contractually required to be

mainta ined

intact.

The court does not

have any

non-spendable funds at year end.

2

Restricted:

Amounts tha t are legal ly restr icted

b y

outside parties,

constitutional

provisions,

or

enab l ing

legislation

requiring a specia l

purpose.

3

Committed:

Am ounts tha t

have

b e e n forma l ly

set aside

b y

a

government

for

use for specific purposes , com m itm ents

are made a n d

can

be resc inded

only

via resolution of the

govermnent

board or authority.

4 Assigned: The organizat ion intends

to

s p e n d resourceson specific purposes

expressed by the judge. The court does not

have

any ass igned funds at year

end.

5

Unassigned: F u n d balance that has n ot been assigned to other fu n d s a n d that

has not

been re s t r ic ted , com m it ted

or assigned

to

specific purposes.

M .

Interfund Transactions

In the governmental funds, t ransact ions tha t constitute re imbursements

to

a fund for

expenditures initially made f rom

it that

are

prope r ly

applicable

to

ano ther

fund

are

recorded as

expenditures in

the reimbursing

fund

a n d as reductions of expenditures

in

the

fund

that is re imbursed.

All

other interfund transactions

are

reported as

transfers.

N .

Use

of

Estimates

The preparation of financia l statements in conformity with general ly accepted

accounting principles

requires

m a n a g e m e n t

to

make estimates a n d assumpt ions

that

affect

the

reported

amounts of assets a n d

liabilities

and d isc losure of assets a n d

liabilities at the date of the

financia l

statements a n d the

repor ted am ounts

of revenues

an d

expenses

during the report ing period.

Actual

results

could

differ f rom those

estimates.

2 1


25/64

P I N E V I L L E C I T Y

COURT

P I N E V I L L E ,

LOUISIANA


FOR THE YEAR ENDED DECEMBER 31,

2 0 1 4

(CONTINUED

O .

Clerk's Salary S u p p l e m e n t a n d on-behalf Payments

The

salaries

of

the

judge ,

clerk

of

court, a n d

d e p u t y clerks

are paid

direct ly by

the

City

of Pineville. The Court pays an agreed-upon amount to the City of Pineville

to

supplement the

salary

of

the clerk

a n d d e p u t y clerks.

The

on-behalf payments

inc luded in

the

financia l s ta tem ents represent

the amount paid by

the City of

Pineville

tha t is not re imbursed

by

the court .

2. C A S H

A t D e c e m b e r

31, 2014, the

Court

has cash a n d

cash

equivalents (book

ba lances) totaling

$705,721, as follows:

Governmental

A g e n c y

Activities Fund Funds

D e m a n d D e p o s it s

Inc luding

Interest

bearing

d e m a n d deposits $ 93.045

$ 612.676

Total

$

93.045

$612.676

These deposits are sta ted at cost,

w h i c h

approximates market. Under state

law,

these

deposits (or the resulting

bank ba lances)

must be

secured b y

the federal dep osi t insuranceor

the pledge of securities o w n e d

by

the fiscal agent bank. The m arke t va lue of the p l e d g e d

securities

plus

the federal deposi t insurance

must

at all times equal

the amount

on deposit

with

the fiscal agent bank.

These securi t ies are he ld in

the

name of the p ledging

fiscal

agent

bank in a holding or custodial bank that is mutually acceptable to

both

parties.

A t December 31, 2014, the Court's g o v e r n m e n t a l activities fund has

$126,216

in deposits

(col lec ted bank balances).

T hese

deposits are secured from

risk by

$126,216 of

federal

deposit insurance

and

n o

pledged

securi t ies he ld by the 3 ^ ^ par ty custodial bank in the name

of

the

Court

(GASB

Category

1).

The a g e n c y

funds

had deposi ts(collected bank

balances)

of $621,810 a n d were insured b y the federa l deposit insurance for $123,784 and $498,026

in

p l e d g e d

securities, (Category 2).

2 2


26/64


PINEVILLE,

LOUISIANA


FOR THE

YEAR

ENDED DECEMBER 31,2014

(CONTINUED)

2. CASH

(contd.)

Custodia l

Credit Risk: For

deposits,

custodial

credit

risk

is

the

risk tha t

in

event of

the

bank

fa i lure , the

court's

funds

aren't

returned. At yea r e n d the

Court's

deposi t s were entirely

covered by

FDIC

insurance or

by

colla tera l held b y the Court or

its agent

in the Court's

n a m e .

E v e n

though

the

pledged securi t ies

are

considered un-colla tera l ized

(Category

3 )

under

the

provisions of

GASB

Statement 3, R.S. 39:1229 i m p o s e s a sta tutory requirement

on the

custodia l bank to advertise and sel l the p ledged securities within 1 0 days of being notified

by

the Court that the fiscal

agent

has

fa i led to

p ay

deposi ted

funds u p o n d e m a n d . (This

disclosure should acknowledge

any viola t ions

of state law

re la t ing

to adequate pledged

securities.)

4. B A D DEBTS

Uncollectible amounts

due

for t ax payer fees receivables are recognized

as

bad deb ts through

the

establishment of

ana l low ance account at

the time

in forma t ion becom es ava ilab le

which

w o u l d indicate the uncollect ibi l i ty of the part icular receivable . All am ounts a re considered

collectible a n d the allowance

account

has

not

been established.

5.

ON-BEHALF PAYMENTS

On-beha l f payments made b y

the City

of Pineville $117,596

Less: Amounts paid

to

the

City of Pineville ("97.607 )

Net amount of on-behalf p a y m e n t s

$

19.989

2 3


27/64

PINEVILLE CITY

COURT



FOR THE YEAR

ENDED

DECEMBER

31,2014

(CONTINUED)

5 CAPITAL ASSETS

A summaryof

prope r ty

a n d

equipment

a n d accumulated

deprecia t ion a t D e c e m b e r

31,2014

follows:

Property and Equipment

Furniture

&

equipment

Leasehold

improvements

Total

Balance

12/31/13

$

246,724

3 9 , 0 0 0

$ 285.724

Additions

3,983

Dele t ions

$ 3.983

Balance

12/31/14

$

250,707

39,000

$

289.707

Furniture equ ipment

Leasehold Improvement s

Total

Balance

12/31/13

$209,117

3.833

212.950

Accumulated

Deprecia t ion

Additions

$

13,863

1.000

$ 14.863

Dele t ions

Balance

12/31/14

$

222,980

4.833

$227.813

6. INTERFUND RECEIVABLES

A N D PAYABLES(due

to/due

f rom)

The interfund balances are primari ly

the result

of the gene ra l fund loaning m o n e y toa g e n c y

funds

to

temporarily cover expenses unti l funds

are

received. The

fo l lowing

is a summary

of amounts due f ro m a n d d u e

to

other funds:

Receivable F u n d

P a v a b l e F u n d A m o u n t

Genera l fund

Capital Project fund

A g e n c y fund

A g e n c y fund

$

26,389

$ 4 ,153

24


28/64

P I N E V I L L E C I T Y COURT

P I N E V I L L E , LOUISIANA

N O T E S T O

THE F I N A N C I A L STATEMENTS

F O R THE Y E A R

E N D E D DECEMBER 31, 2014

( C O N T I N U E D )

7. P E N S IO N P L A N

The Court contributes to

the

Louisiana State Employees' Retirement Sys tem

(LASERS),

a

cost sharing mult ip le -employe r , pub l ic employee retirement sys tem, cont ro l led

and

administered b y

a

separa te board of trustees. All state

employees ,

excep t

certa in

classes

e x c l u d e d by

statute,

b e c o m e m e m b e r s of L A S E R S asa

condition

of

e m p l o y m e n t

unless they

e lect to

continue as

a cont r ibuting mem ber in

a n y

other re t i rement system for w h i c h they are

eligible for membership.

Elected

officia ls and

officials

appoin ted by the Governor may, at

their option, become

m e m b e r s of LASERS.

L A S E R S

provides

re t irement ,

death, a n d disability

benefi ts

to p lan members

and

beneficiaries. Benefi ts

are

established by

state statute.

The Louisiana

State

Employees'

Retirement System issurs a public ly available financial report tha t includes

finanacial

statements a n d

requi red supplemen ta ry

information. That

report

m a y be obta ined

b y writing

to

LouisianaState

Employees'

Ret i rment System,

P.O.

Box 44213, Baton Rouge , LA 70804-

4213, b y calling (800) 256-3000, or be visi t ing www.laseronline.ora.

Covered employees

are

required by

state

statute to

contribute

11 .5 %of their

salary to the

plan.

The court contributes an ac tua r ia l ly de te rmined rate, w h i c h at year end w a s set at 36.3%

of

the member's

annual salary. Contributions

to

LASERS for

the years

e n d e d

December 31,

2 0 1 3 ,

2012

and 2014 were

$38,879,

$42,335

a n d $10,414

respect ive ly, which exceeds

the

required contributions for the year 2014 .

8. OPERATING LEASES

The court is

committed

under various opera t ing leases for officeequipment . Lease expenditures for

office equipment for theyear ended

D e c e m b e r

312014, amounted

to

$5,964.

Future

minimum lease

p a y m e n t s

for

these leases

are

as

fo l lows:

Office equipment

2 0 1 5 $3.312

Total

$3.312

2 5

http://www.laseronline.ora/http://www.laseronline.ora/


29/64

PINEVILLE CITY

COURT



FOR THE YEAR

ENDED

DECEMBER 31,

2 0 1 4

(CONTINUED)

9. LITIGATION

A N D

CLAIMS

The court

has

no outs tanding Lawsui ts .

10.

RISK

MANAGEMENT

The court

is

exposed

to

various r isks of loss re la ted

to

torts;

dam age to , the ft of

or

destruction

of assets,errors a n d omissions, injuries to employees a n d thepublic;

an d

natural disasters. The

City

of Pineville

cairies com m ercia l insurance inc luding workers' compensa t ion

a n d

employee

health a n d accident insurance. In addition,

the

Court carries

f idel i ty bond s

on the

clerks. No

claims from these risks havee x c e e d e d c o m m e r c i a l insurance coverage in a n y of thepast three

years.

26


30/64

PI N EV I LLE C I TY C O U R T

Pinevilie, Louis iana

S TATEM EN T OF REVENUES, EXPEN DI TU RES AND C H AN G ES

IN

FUND BALANCE

BU DG ET

AND ACTUAL

-

G E N E R A L F U N D

FOR T HE

Y EA R EN DED

D E C E M B E R 3 1 ,

2 0 1 4

BUDGETED AMOUNTS

REVENUE

Courl fees,

fines, and costs

Court costs

Civil fees-discretionary

Charges for services

Probation

fees

On-behalf salaries and benefits received

Interest Income

Miscellaneous

Total

Revenues

ORIGINAL

$288,300

FINAL

$288,300

288,300 288,300

ACTUAL

fSKE

NO-I-E

"A"l

$122 ,682

102 ,861

78,683

19,989

2

6,909

331,126

VARIANCE

FAVORABLE

(UNFAVORABLEt

( 1 6 5 , 6 1 8 )

1 0 2 , 8 6 1

7 8 , 6 8 3

1 9 , 9 8 9

2

6 , 9 0 9

4 2 , 8 2 6

EXPENDITURES

CURRENT-Gcneral Government

Salaries & Fringe Benefits

On-behalf salaries and benefits p a id

Contract Services

Legal &

Professional

Dues

& Subscriptions

Conpuler

fees

Lease & Maint,,

Office Supplies

Travel & Seminars

Miscellaneous

Total

Current

Expenditures

2 6 4 , 5 0 0

7 , 5 0 0

2 , 0 0 0

9 , 0 0 0

5 , 3 0 0

2 8 8 3 6 6

2 6 4 , 5 0 0

7 , 5 0 0

2 , 0 0 0

9 , 0 0 0

5,300

2 8 8 , 3 6 6

184,481

19,989

58,220

1,440

4,389

12 ,442

9,732

296,693"

80,019

(19,989)

0

(58,220)

(1,440)

7 , 5 0 0

2,000

4,611

(12,442)

(4,432)

(2,393)

CAPITAL

OUTLAY:

Total Expenditures'

2 8 8 , 3 0 0 2 8 8 , 3 0 0

2 9 0 , 6 9 3

0

( 2 , 3 9 3 )

T he

accompanying

notes are

an

integral part of

this

financial s ta tement

(Continued)

2 7


31/64

PI N EV I LLE C I TY C O U R T


S TATEM EN T OFREVENUES,

E X P E ND IT UR E S

A ND C H AN G ES

IN

FU N D B A L A N C E

BU DG ET A N D A C TU A L - G E N E R A L

FUND

F O R

T HE

YE A R

E N D E D D E C E M B E R

3 1 ,

2 0 1 4

(CONTINUED)

BUDGETED

AMOUNTS

ORI GI NA I . FINAL

ACTUAL

ISEE

NOTE

"A")

VARIANCE

FAVORABLE

(UNFAVORABLE

E X C E S S ( D E F ) OF

R E V E N U E S

O V E R E X P E N D I T R U E S

O T H E R

F I N A N C I N G S O U R C E S ( US E S ):

O p era t i n g Tra n s fer s Out

Total O t h e r Financing

sources

(uses)

40,433

0

40,433

Excess O f Revenues and O t h e r

Financing

Sources over

(Under) Expenditures a n d O t h e r

Financing

Uses

0 0 40,433

40,433

F U N D

B A L A N C E , BE G I N N I N G

FUND

BA LA N C E ,

ENDING

8,190

$8,190

8,190

$8,190

8,190

$48,623

0

$40^433

T he

accompanying

noles are

an

integral part of

tliis

financia l s ta teme nt

28


32/64

PI N EV I LLE C I TY

C O U R T


ST A T E M E NT

OF R EV EN U ES,

E X P E ND IT UR E S

A ND C H AN G ES

IN

FU N D

BALANCE

BU DG ET AND ACTUAL

•

G E N E R A L

FUND

FOR

T HE

Y EA R

EN DED

D E C E M B E R

31 , 2014

(CONTINUED)

Note A Explanation of differences between Revenues Expenditures

and Other

Financing

Sources

for

the General Fund on a

Budgetary

Basis

and

General Fund on a GAAP Basis.

Revenues

Actual revenues (budgetary basis) $288,300

Adjustnicnls:

The

Court docs

not budget on-bchalf

support

received front

the

City of Pineville 19,989

Total

revenues on

the

Statement of Revenues,

Expenditures, and Changes

in

Fund

Balances

$308,289

Expenditures

Actual

expenditures (budgetaiy basis)

$288,300

Adjustments

The Court does not budget on-behalf expenditures

paid

by the City of Pineville 19,989

Total

expenditures on

the

Statement

of Revenues,

Expenditures, and

Changes in Fund Balances

$308,289

T he

accompanying

notes

are an

integral

part

of this

financial

s t a t e me n t

29


33/64

PINEVILLE

CITY

COURT


O T H E R REPORTS

REQUIRED B Y

G O V E R N M E N T A U D IT I N G S T A N D A R D S

The following

pages

contain the report on

internal

control structure an d

c o m p l i a n c e

with laws

and

regulations required b y Government Audi t ing

Standards issued

b y the Com ptro l le r General of the

United States. The paragraph on in ternal control structure is based solely on the audit of the general

purpose

financial

statements a n d inc ludes where appropriate,

any deficiencies and/or

material

weaknesses.

The paragraph on compl iance

with laws

and regula tions

is,

l ikewise , based solely on

the audit of the gene ra l purpose financia l statements a n d presents, w h e r e applicable, compliance

matters that w o u l d be

materia l

to

the genera l

purpose

financia l s ta tements.

30


34/64

MEMBER

AMERICAN INSTITUTE OF

CERTIFIED PUBLIC A CCO U N TA N TS

M E M B E R

SOCIETY OF

L OU I SI A NA

CERTIFIED PUBUC ACCOUNTANTS

D EBEVEC

CERTIFIED PUBUC

A C C OU NT A NT

INDEPENDENT AUDITOR'S REPORT

ON

INTERNALCONTROL OVER

FINANCIAL REPORTING

A N D

ON COMPLIANCE A N D

OTHER MATTERS

BASED

ON A N AUDIT

OF FINANCIAL

STATEMENTSPERFORMED

IN

ACCORDANCE WITH GOVERNMENT

AUDITING STANDARDS

Honorable

G ary Hays

Pineville City Cour t Judge

Pineville,

Louisiana

1 was engaged

to

audit , in accordance with

the

auditing s tandards genera l ly

accepted

in

the

Uni ted

States of Americaan d thes tandards applicable

to

financia l audits

conta ined

in Government Auditing

Standards

issued

by

the Com ptro lle r

General of

the United

Sta tes, the financial statements of the

governmental activities,

each major

fund

and

the

aggrega te remaining fund information of

the

Pineville

City

Court,

as

of a n d for the y e a r e n d e d D e c e m b e r 31, 2 0 1 4 , a n d the related notes to the

financial

statements,

which col lec t ive ly

comprise the

Pinevil le City

Court

's basic f inancia l

statements a n d have issued

m y

report

thereon

da ted January 31 , 2016.

Internal Control

over Financial Reporting

In planning a n d per forming m y audit of the financia l statements, I conside red the Pineville

City

Court's internal

control over f inancia l

reporting

(internal con trol)

to determine the auditprocedures

that are

appropriate

in the circumstances for

the

purpose of express ing

m y opinions

on

the

financia l

statements, but not for the purpose of expressing an opinionon the effect iveness of the Pineville City

Court's internal control. Accordingly, I d o not express an

opinion

on the effectiveness of The

Pineville City

Court's in ternal

control.

M y consideration of internal control

was

for

the

l imited purpose

described in the

preceding

paragraph and w a s n o t d e s ig n e d to identify all deficiencies in in ternal

control

that m i g h t b e materia l

weaknesses

or significant deficiencies a n d therefore,

m ate ria l w eaknesses

or significant

deficiencies

may exist

that

were

not identified.

However,as

descr ibed

in

t h e a c c o m p a n y i n g

schedule

of f indings

a n d questionedcosts, I ident if ied

certain

deficiencies in in ternal control tha t I consider o be m ate r ia l

weaknesses.

1220

WINDSOR

PLACE'ALEXANDRIA,

L O UISIAN A

71303'(J18)443-3977


35/64

A

de f ic iency in in ternal control exists

w h e n

the des ign or opera t ion of a control does not allow

management or

employees ,

in the

n o r m a l

courseof

per forming their ass igned

functions, to

prevent ,

or

detect

and correct , miss ta tements on a t imely basis. A materia l weakness is a deficiency, or a

combination of deficiencies, in internal control such

tha t

there is a reasonable possibility that a

material

miss ta tement of the

entity's

financial

s ta tements

wi l l

not

b e

prevented, or

de tec ted

a n d

corrected on a

t imely

basis. I consider

the

deficiencies descr ibed in

the

accompanying schedule of

findings a n d

quest ioned

costs

to

be material weaknesses ; 2014-1,2014-2,2014-3,2014-4, 2014-5 ,

2014-6,

2014-7 , 2014-8 , 2014-9 ,

2014-10,

2014-11 , 2014-12 ,

2014-13, 2014-14, 2 0 1 4 - 1 5 a n d

2014-16, 2 0 1 4 - 1 7 A N D 2014-18 .

Compliance a n d O t h e r Matters

As

par t of obta in ing reasonab le

assurance

about

whether the Pineville City Court's

financia l

statements are free from materia l misstatement, I per formed tests of its compliance with certa in

provisions

of

l aws ,

regula t ions,

contracts,

and gran t

agreements ,

noncompliance

with

which

could

have

a

direct an d mater ial

effect on

the

de te rmina t ion

of

financia l statement

amounts.

However ,

providing

an opin ion on compliance with those provis ions w as n ot an

objective

of m y audi t, and

accordingly, I do not express s u c h a n opinion. The results of m y tests disc losed

instances

of

noncompliance or

other

matters that are required to be

repor ted

u n d e r G o v e r n m e n t

Audi t ing

Standards

a n d w h i c h are described in the a c c o m p a n y i n g schedule of findings and quest ioned costs

as

items2014-1,2014-2,2014-3,2014-4, 2014-5,2014-6,2014-7,2014-8,2014-9,2014-10,2014-

11,

2014-12,

2 0 1 4 - 1 3 , 2 0 1 4 - 1 4 ,

2014-15,

2014-16. 2014-17 ,

2014-18.

Pineville

City

Court's Response

to

Findings

The Pineville

City

Court's response to the findings ident i f ied in m y audit are descr ibed in the

accompanying

Correct ion

Action

Plan.

The

Pinevil le City

Court'sresponse was

not subjected

to the

auditing

procedures appl ied in the audit of

the

f inancial statements and, accordingly, 1 express n o

opinion on it .

32


36/64

Purpose

of

th is Re port

The

purpose

of this report

is

solely

to describe the

scope of m y

testing

of internal control

a n d

compliance a n d the results of

tha t

testing, a n d not

to

prov ide a n opinionon the effectiveness of the

entity's

internal control

or

on

compliance. This

report

is

an

integra l

par t

of an audit

performed

in

accordance

w i t h G o v e r n m e n t Auditing Standards in considering

the

entity's internal control a n d

compliance. Accordingly, this communication is

not sui table

for

any o the r

purpose.

Billy

Debevec, C P A

Alexandria, Louisiana

January 31, 2 0 1 6

33


37/64

PINEVILLE C IT Y C O U R T

SCHEDULE

OF F I N D I N G S A N D

Q U E S T I O N E D COSTS

For the Year

E n d e d

D ec em ber 31, 2014

I

ha ve audi ted the f inancial s tatements of t he Pinevil le

City

Court

as

of D e c e mb e r 31,2014 an d have is sued

my repor t the reon da ted Januaiy 31, 2016. I conducted

m y audi t in

a c c ord a n c e with Un i ted Sta tes genera l ly

accep ted aud i t ing s tandards

a n d the

standards app l icable to

financial audits

con ta ined in

G o v e r n m e n l

Auditing

Standards, issued by the Com ptrolle r Genera l of the United

States.

My audi t of the f inancial s tatements as

of a n d

for

the

year

e n d e d

D e c e mb e r

31,2014 resul ted

in

a disclaimer of

opin ion on

t he

governm enta l ac t ivi t ies ,

e a c h

major

fund,

a n d

t he aggregate remain ing fund information (agency fund).

Section

1-Summary

of

Auditor's

Reports

a. Repor t on Internal Control an d Comp l i a n c e Material

to

t he F inanc ia l S ta t em en ts

Internal

control

Material

Weaknesses V

Y e s

^ N o Signif icant

Def ic ienc ies Y e s No

Compl iance

on Com pl iance Ma ter ia l to F inanc ia l Sta tements V Y e s No

Section

II-Financial Statement Findings:

14-1 Financial Statement Preparation

Criteria: An appropriate and effective system

of

internal

control

over financial

reporting

includes controls over transactions

and

the preparation of

the financial statements

which

would prevent or detect

errors

or

irregularities in the

financial

statements.

Condition: Pineville

City

Court was notified in

the 2012 2013

audit report

that they do

not have

personnel with the technical accounting

expertise

to prepare

Generally

Accepted

Accounting

Principles

(GAAP) financial

statements

including footnote

disclosures.

34


38/64

PIN E V ILLE CITY CO U R T

SCHE DULE OF FINDINGS AND QUE ST IO N E D CO ST S

For the Y e a r

En d ed Decem ber

31 ,

2014

(continued)

14-1 Financial Statement Preparation ( c o m )

Condi t ion

(cent)

A de f ic iency in operation

exists

when the pe rson pe r forming

the

control does not

possess the

necessa ry

authority or

competence

to

per form the control effect ive ly. Additionally, a mater ia l w e a k n e s s

is

a

deficiency, or

a combina t ion

of deficiencies, in in ternal

control,

such that there s a

reasonable

possibility that

a

mater ial misstatement

of

the

Pinevil le

City Court's

financial

statements

wil l

not be

prevented, or de tec ted and corrected in a t ime ly basis.

Effect : As

a

result

of

Judge Terre l l not

adopting a n d

i m p l e m e n t i n g a

better

accounting sys tem wi th increased controls over the accounting

transactions and f inancial

s ta tement prepa ra t ion ,

errors or

i iTegularities were not de tec ted in a t ime ly manner.

Recommendation:

The

Pineville City

Court

should cont rac t for

outside

monthly

accountingassistance

f rom

a

CPA

w h o i s on

the

Legisla t ive

Auditor's

websiteof

approved

G o v e r n m e n t a l

Cert if ied

Public

Accountants.

B y

contracting for outside accounting assistance, the court w i l lcontinue

to have expertly t rained assistance

a t a reduced and reasonab le cost

compared to hiring in house.

Response :

See

the

Correct ive Action Plan.

14-2 Segregat ion of Duties

Criteria: Segregation of

duties

is required

to

have

an ap propr ia te

an d effective

sys tem of in ternal control over financial data.

Condi t ion One em ployee h as cont ro l ove r checks , prepares checks, signs the

checks

a n d

prepares

the

bank

reconciliation

Effect:

Due to the l im i ted num ber of people w o r k i n g

for

the cou rt ,

m a n y

of

the critical duties

are

c o m b i n e d a n d

assigned

to

ava i lab le em ployees .

Present ly , a single individual preforms

the

majori ty of the account ing

functions.

3 5


39/64

14-2

Segregation

of Duties ( c o m . )

Recommendation:

Duties

shou ld b e segrega ted to serve

as a

check and ba lance in order

to

mainta in an effect ive internal

control.

The account ing functions of

check

prepara t ion, check

signing a n d bank

reconcil ia t ion should

be

separa ted.

Response:

See

the

Correct ive Action Plan.

14-3 Louisiana Uncla imed P rop er t y

Criteria:

Funds

held by

the court which have not been claimed one

year

after the

checks have been

disbursed,

should

be

transmitted to

the

State of Louisiana

according to the unclaimed property laws.

Condition:

The Civil

Agency Fund has checks which

are

unclaimed and

older

than one

year.

These

funds should

have

been sent back to the State of Louisiana.

Effect:

Recommendation:

The

court

is violation of the

Louisiana unclaimed

property

laws.

The unclaimed property should be reported

on

the correct form and

sent

to

the State

of Louisiana.

Response:

See

the Corrective Action Plan.

14-4 I R S form

1099

Misce l laneous I n c o m e

Criteria:

Form 1099s should be comp leted for all

non

employees who were paid more

than

$600

for services

they

performed.

Condition

Some of the 10 99s were comp leted incorrectly and

mailed

out.

Effect:

The

n o n e m p l o y e e s

could have

report ing

and t ax

prob lems

on

their

personal re turns. Also,

the error

could cause the

n o n - e m p l o y e e

to

report the ir income

incorrectly

or could have a in forma t ion match

prob lem

wi th the In te rna l Revenue

Service . The result

could b e

penalt ies for the court.

36


40/64

14-4

I R S

f o r m 1099 M iscellaneou s I n c o m e

Recommendation:

The 1099s should be checked for cler ical accuracy and m ai led only

after the

amounts have

b e e n verified.

Then,

they

should be

filed

on

ha nd wi th the courts

suppor ting docum ents .

Response:

S e e the Corrective Action Plan.

14-5 IRS form W-2

Criteria:

Revenue

Ruling

2006-18

cites

Internal

Revenue Code

section 3401(a) in

defining w ages

to

include all remuneration

for

seivices

performed by

an

employee

for his employer. Code

section

3401© def ines

employees as

elected

officials

of

state

or local government.

Condition

Effect:

As an

elected official, all

of

Phillip

Terrell's

remunerat ion should have been

included

on the employee form W-2. Consequently, $20,005

in

payments

to

him

were

reported

on

form

1099

and was

excluded from the form W-2.

A s a result

of

the mishandling of his pay, his personal

taxes

could be

miscalcula ted . If he

off

set his business expenses against his

emp loy ee earnings, ins tead of

i temizing

the appropriate

un

re imbursed

employee

bus in ess exp en s es

on Schedule-A,

the personal

taxes could be understated. Also, the resul t could be penalties for the

court.

Recommendation: All

remunera t ion

for services rendered by

employees

should b e

repor ted on form W-2.

Response:

S e e

t he

Corrective Action

Plan.

14-6 Lack

of

Writ ten Policies

Regarding Food

P u rch a s e s

Criteria:

F ood

purchases from court

fun d s

s hould be

m a d e

only for the

benef i t

of

thecourt. Those purchasess hould be m ad e in accordance with the

court's

wri t ten

policies

govern ing

those pu rchases . Also,

the policies

should

require

food

purchased

with

court funds to be included on the

W-2

of

the employees

w h o

benef i t ted if the amounts

are

more

than

a

de minimis amount.

37


41/64

14-6

Lack

of Written Policies

Regarding

Food

Purchases

{ c o m . )

Condition

Effect

Food purchases w e r e m a d e at

the

local restaurants without

wri t ten

policies governing

h o w t h e

m o n e y is to be spent or reported.

There

could b e

una l lowed

disbursements that the courtcould

lose

or

not get back. Also, there could be tax fo r m reporting penalt ies.

R e c o m m e n d a t i o n : The court should establish clear writ ten policies governing all

food

purchases

made

with

court fund s.

Response:

See the Corrective Act ion Plan.

14-7

L A S E R S

Retirement Contributions

Criteria:

For the year

e n d e d

June

3 0 , 2 0 1 4 , LASERS retirement

requires

Judges & Judicial

Employees

Hired be fore 1 /01 /11

to

contribute the

employer's por t ion of the

ret i rement expense

at 36.3%.

an d

the

employees' port ion a t a

ra te

of

11.5%.

These percentages

should

b e

appl ied to

the

approved salary of the

p ay

period.

Condition

The Pineville City Court incorrect ly contributed

the

employee's

re t i rement

share

w ithout w i thhold ing the

amount from

Judge Phil l ip

Terrell's payroll.

Effect:

A s

a

result

ofnot withholding the

11 .5%

fr o m Judge

Phillip

Terrell's

salary, the

court will have

to

operate

the

court

activities

without

those funds.

Recommendation:

The amount

pa id

for

re ti rem ent expense should

b e c h e c k e d to ensure

tha t the percentages used agrees w i th t h e L A S E R S retirement system.

Addit ionally,

the court should

seek to recover

the

unauthorized

disbursement of retirement funds.

Response:

See the

Corrective Action Plan.

3 8


42/64


43/64

14-9 FALSIFICATION OF RECORDS ( c o m )

Effect :

Asa

result

of

not hav in g

adequately trained account ing personnel and

Judge Terre l l e lec t ing in last year's audit to g o without that

assistance,

the

re t i rement

earnings records for Judge Terrell were

inflated. Consequent ly ,

this

w o u l d increase his re t i rement income

above t he amoun t

authorized

b y law an d

force

the Pineville

City

Court to operate w i thout a l l

their

funds.

Recommendation:

The audit s hould be

referred to

theLouisiana

State

S u p r e m e Court for

invest igat ion. Additionally,

the Pineville City C our t should contract

wi th

outside assis tance

to

determine

if

false

reports

wer e

filed

in prior

years .

Response:

See the Correc t ive Action Plan.

14-10 C O D E OF GOVERNMENTAL

ETHICS

Criteria:

It is essential to the proper operation of

d emocr a t i c

government that

elected

officials and public

e m p l o y e e s

be i n d ep en d en t an d impartial;

tha t

gov er n men ta l decisions

and pol icy be

m a d e in t he

proper

channel

of the gov er n men ta l structure; that public off ice and employment not

be used for pr ivate

gain

other thanthe

r emun er a tion p r ov id ed

by

law;

a n d that there be public confidence in the

in tegri ty

of government.

The

a t t a inment of

one or

m o r e of

these ends

is impaired when a

conflict

exists

between the

pr ivate

interests of a n elec ted official

or

a

public emp loy ee

a n d

his duties as such. The

public

interest,

therefore, requires that the law protect

agains t

such

conflicts

of

interest and that it establish appropriate ethical s tandards with respect

to the conduct

of

elected

officials and publ ic

emp loy ees without

creating unnecessary barriers to public service.

4 0


44/64

1 4 - 1 0

CODE

OF

GOVERNMENTAL ETHICS

c o n t )

Condition: The Louis iana State Supreme Court notifies the Pineville City

Court

on a n an n ua l basis of

the w a g e amount tha t can be

paid

to District

Judges . In

accordance with state law,

the

salary

of

city

court judges

shall

in n o

case exceed

the sa lary

of

the

District Court

Judges in

the

judicial district in w h i c h the

city cour t

is located. Judge Phillip

Ter re l l was em p loy ed b y the

Pineville

City Court during 2014 from

the period

January 1 , 2014 through Mar ch 14 ,

2 0 1 4

or for

a

total of

7 3

days.

The District Court Judges are authorized to be paid $143,

2 53

fortheyearending June30,2014. That

calcula tes to $392.47

per

day. Accordingly , Judge Phil l ip Terrell's

salaiy

should

not

exceed

$28,650.

The

amount

of

his

private gain

that

exceeds

the amount

provided

b y

law is as fol lows:

City of

Pineville w a g e s

$4,059

La Supreme Court wages 9 ,2 7 3

Pineville City Court

Contract

p a y m e n t s

2 0 .005 $33,337

Un r ecov er ed

e m p l o y e e

Retirement p ay men t s (2 014) 2,506

Unrecovered e m p l o y e e

Retirement

p a y m e n t s

Pa id in 2014 for the y ear (2 013 )

3 .795

Total salaries and unauthorized benefits

39,638

Less the

a m o u n t

authorized (28.6501

EXCESS SALARIES

A N D

B E N E F I T S

O R PRIVATE

G A I N A M O U N T 10.988

Effect:

A s

a

result

of

not adopting

a n d

imp lemen t in g

a

better accounting

sys tem with

increased

controls over the accoun t in g transactions

a n d

f inancia l statement

preparation, errors

or

irregularities

wer e n ot

detec ted in

a

timely manner. The Pinevi l le Ci ty Court

will

be

financially limited

as

a

result

of Judge

Phillip

Terrell's inaction to

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45/64

14-10 CODE OF GOVERNMENTAL ETHICS ( c o m )

Effect

(com.):

con-ect the internal

control weakness caused

by

a de f ic iency

in

the

ope ra t ions thatw ere repor ted to h i m in the 2 0 1 2 & 2 0 1 3 audit report .

The

Pineville

City Court Clerk or Clerks w h o p e r fo r m e d

those

acts

should

also be looked at

to

de te rmine if

further

actions against them

is

required.

Recommendation:

The

Pineville

City Cour t should send these

findings

to

the

Louisiana

State Supreme Court so that t hey can invest iga te . Also, the Pineville

City Cour t should cont rac t wi th an outside Certified Public

Account ing firm to look at

prior

years for over payments , advance

payments ,

false

re t irement reports

a n d

e thics

violations.

Response:

See the Corrective Act ion P lan .

14-11

MALFEASANCE IN

OFFICE

Criteria:

A .

Malfeasance in office

is committed

w h e n any

public

officer or

publ ic employee shall:

(1 ) In ten t iona l ly refuse or fail to per form any duty lawfully required

of him,

as such

officer or

employee ;

or

(2) In ten t io

pineville city court audit

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