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ST. JOHN THE BAPTIST PARISH CLERK OF COURT

Financial Report

Year Ended June 30, 2011

prc?v,5;o:is of state la-A'. UVs repoit is a Dublic 6oo\.\'r,\e \̂. Acopy of *ile reL^d has been submitted to the entity ana oiiior appropriate pvio'̂ c ctt'icials. The report Is available for oubiic •nspection at tne Baton Rouge office of '.he Lecjislaiive AiiCiitor and. --Nmxe appropriaie. at the office cf the parish, c!erk ofcourt.

Refea„Oa,.FEB0 8 2012

TABLE OF CONTENTS

Page

INDEPENDENT AUDITORS REPORT 1-2

BASIC FLNANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS

Statement of net assets 5 Statement of activities 6

FUND FINANCIAL STATEMENTS Govemmental Funds -

Balance sheet 9-10 Statement of revenues, expenditures, and changes in fund balances 11-12

Statement of fiduciary net assets 13

Notes to financial statements 14-27

REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedules:

General Fund 29 East Bank Expense Fund 30

Notes to budgetary comparison schedules 31 Schedule of funding progress 32

INTERNAL CONTROL, COMPLIANCE, AND OTHER INFORMATION Report on intemal conU'ol over financial reporting and on compliance and

other matters based on an audit of financial statements performed in accordance with Government Auditing Standards 34-35

Schedule of audit results and findings 36-37

Summary schedule of prior audit findings 38

Corrective action plan for current year findings 39

C. Burlon Koider. CPA* Russoll F. Champagne. CPA* Victor R. Slavon, CPA' P. Troy Courvillc. CPA* Gerald A Thibodeaux. Jr.,CPA* Robert S. Carter, CPA* Arthur R. Mixon. CPA"

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS

OFFICES

Tynes E. Mixon. Jr., CPA Allen J. LaBry, CPA Albert R. Leger, CPA.PFS.CSA* Penny Angolle Scruggins, CPA Christine L, Cousin, CPA Mary T. Thibodeaux, CPA Marshall W. Guidry, CPA Alan M. Taylor, CPA James R. Roy. CPA Robert J. Motz, CPA Kelly M. Doucet, CPA Cheryl L. Barlley, CPA Mandy B. Self, CPA Paul L. Delcambre, Jr. CPA Wanda F. Arcoment. CPA. CVA Kristin B. Dauzat. CPA Richard R. Anderson Sr.. CPA Carolyn C. Anderson. CPA Matthew E. Margagllo, CPA Jane R, Heberl, CPA

Retired: Conrad O. Chapman, CPA* 2006 Harry J. Clostio, CPA 2007

183 South 3eadloRd. Lafayette. LA 70508 Phono (337) 232-4141 Fax (337) 232 8660

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408 West Cotton Street Vilto Platto. LA 70586 Phone (337) 363-2792 Fax (337) 363-3049

332 West Sixth Avenue Oberlin. LA 70655 Phone (337) 639-4737 Fax (337) 639-4568

450 East Main Street New Iberia, LA 70560

Phone (337) 367-9204 Fax (337) 367-9208

200 South Main Street Abbeville, LA 70510

Phone (337) 893-7944 Fax (337) 893-7946

1013 Main Street Franklin. LA 70538

Phone (337) 828-0272 Fax (337) 828-0290

133 East Waddil St. Marksville U\ 71351

Phone (318) 253-9252 Fax (318) 253-8681

621 Main Street Pineville, LA 71360

Phone (318) 442-4421 Fax (318) 442-9833

WEB SITE WWW.KCSRCPAS.COU

' A ProlssS'Orai Accnjnting Corporation

INDEPENDENT AUDITOR'S REPORT

The llonorable Eliana DeFrancesch St. John the Bapnst Parish Clerk of Court Edeard, Louisiana

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of St. John the Baptist Parish Clerk of Court (hereinafter "Clerk of Court"), a component unit of the St. John the Baptist Parish Government, as of and for the year ended June 30, 2011, which collectively comprise the Clerk of Court's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Clerk of Court. Our responsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance v̂ 'ith audiiing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the govemmental activities, each major fund, and the aggregate remaining fund information of the Clerk of Court, as of June 30, 2011, and the respective changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Member of: AMERICAN INSTITUl E OF CERTIFIED PUBLIC ACCOUNTANTS

Member of: SOCIETY OF LOUISIANA

CERTIFIED PUBLIC ACCOUNTANTS

http://WWW.KCSRCPAS.COU

As discussed in note ID lo the financial statements, effective July 1, 2010, the Clerk of Court implemented the provisions of Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.

In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2011 on our consideration of the Clerk of Court's intemal control over financial reponing and on our tests of ils compliance with certain provisions of laws, regulations, contracts, and grant agreements and olher matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that tesnng, 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 accordance with Govenmient Auditing Standards and should be considered in assessing the results of our audil.

The budgetary comparison schedules and schedule of funding progress on pages 29 through 31 and page 32, respectively, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on them. The Clerk of Court has nol presented management's discussion and analysis that the Governmenlal Accounting StandiU'ds Board has determined is necessary lo supplement, although not required to be part of, the basic financial statements.

Koider, Champagne, Slaven & Company, LLC Certified Public Accountants

Morgan City, Louisiana December 20, 2011

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard, Louisiana

Statement of Net Assets June 30, 2011

ASSETS

Current asseis; Cash and interest-bearing deposits Receivables, net Due from olher governments Prepaid expenses

Total curreni assets

Noncurrent assets:

Capital asseis, net

Governmental Acdvities

503,513 38,171 33,765

1,107

576,556

51,271

Total assets

LL\BiLlTIES

Accounts, salaries, and other payables Deferred revenue Long term liabilities

Due in more than one year

Total liabilities

627,827

12,635 3,578

164,786

180,999

NET ASSETS

Invested in capital asseis Restricted for special programs

Unrestricted Total net assets

51,271

47,297

348,260

446,828

The accompanying notes arc an integral part of the financial statements.


Statement of Activities Year Ended June 30, 2011

Activities Governmental activities:

General government

Expen .scs

Program Revenues

Charges for Services

$ 1,910,027 $ 1,882,364

Nel (Expense) / Revenue and Changes in Net Assets

$ (27,663)

General revenues: Interest and investmenl earnings

Change in net asseis

Nel assets - July 1,2010

Netassets-June 30, 2011

32,273

4,610

442,218

446,828

The accompanyini> notes arc an integral part of the financial statements.

FUND FINANCIAL STATEMENTS

MAJOR FUNDS' DESCRIPTIONS

GENERALFUND

To account for resources traditionally associated with govemments which are not required to be accounted foe in another fund.

SPECIAL REVNUE FUND East Bank Expense Fund

To account for the additional costs assessed in all criminal matters of which the Fortieth Judicial District Court has jurisdiction to be expended for the support ofthe Clerk of Court's branch office on the cast bank of the Mississippi River.


ASSETS

Cash and interest-bearing deposils Receivables:

Accounts receivable

Due from other governments

Due from other funds

Prepaid expenses

Total asseis

LL\BIHT1ES AND FUND BALANCE

Liabilities: Accounts payable Accrued payroll liabilities

Due to other funds Deferred revenue

Tolal liabilities

Fund balance: Nonspendable Restricted Unassigned

Total fund balance

Total liabilities and fund balance

Balance Sheet Governmental Funds

June 30, 2011

S

1

General

467,504

20,555 33,765

6,328

1,107

529,259

East Bank Expense

$ 36,009

17,616 -

101,148 -

$ 154.773

Total Governmental

S

L

Funds

503,513

38,171 33,765

107,476

1,107

684,032

$ 12,295 340

-

3,578

16,213

1,107 -

511,939 513,046

S 529,259

$

. —

—

I

--

107,476 -

107,476

47,297 -

47,297

154,773

$ 12,295 340

107,476

3,578

123,689

1,107 47,297

511,939 560,343

$ 684,032

(continued)


Balance Sheet (continued) Governmental Funds

June 30, 2011

Reconciliation of the governmental funds balance sheet to the staiemeni of of net assets:

Total fund balance for the governmenlal fund al June 30, 2011 $ 560,343

Capital assets used in governmental activities are not financial resources and, therefore, are nol reported in the funds. Those asseis consist of

Furniture, fixtures, and equipment $ 431,442 Less: Accumulated depreciation (380,171) 51,271

Liabililies not due and payable in the current period are therefore are nol reported in the funds

Compensated absences (15,451) Net OPEB obligation (149,335) (164,786)

Tolal net asseis of governmental activities al June 30, 2011 $ 446,828

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

10


Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds


Revenues: Licenses and permits Fees, charges and commissions -

Court costs, fees and charges Recording legal documents Certified copies

Intergovernmental Inieresi earnings

Total revenues

Expenditures: Curreni -

General govemment: Personnel services and related benefits Operating services Maierial and supplies

Capital outlay

Total expenditures

Net change in fund balances

Fund balance, beginning

Fund balance, ending

General

7,365

579,500 935,521 107,871 38,026 32,273

1.700,556

East Bank Expense

Total Governmental

Funds

214,08

214,081

7,365

793,581 935,521 107,871 38,026 32,273

,914,637

1,357,289 186,163 69,346

6,193

1,618,991

81,565

431,481

S 513,046 5

185,125 11,478 5,666

3,966

206,235

7,846

39,451

; 47;297

1,542,414 197,641 75,012

10,159

1,825,226

89,411

470,932

$ 560,343

(continued)

11


Statement of Revenues, Expenditures, and Changes in Fund Balances (continued) Governmental Funds


Reconciliation ofthe Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Fund to the Statement of Activities:

Tolal net change in fund balances for the year ended June 30, 2011 per Statement of Revenues, Expenditures and Changes in Fund Balances S 89,411

The change in net assets reported for governmental activities in the statement of activides is different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the coust of those assets is allocated over their estimated useful lives and reported as depreciation expense.

Capital outlay which is considered expenditures on Statement

of Revenues, Expenditures and Changes in Fund Balances 10,159

Depreciaiion expense for the year ended June 30, 2011 (22,380) (12,221)

Some expenses reported in the Statement of Actitives do nol require the use of current financial resources and. iherefore are not reported as expenditures in the govemmental funds:

Prior year compensated absences 17,906 Current year conpensated absences (15,451)

Change in nel OPEB obligation (75,035) (72,580)

Total change in net asseis for the year ended June 30, 2011 per Statement of Activities $ 4,610

The accompanying notes are an intet^ral part of the financial statements.


Statement of Fiduciary Net Assets June 30, 2011

ASSETS Agency Funds

Cash and interest-bearing deposits $ 2,758,102

LIABILITIES

Due to litigants and others $ 2,758,102

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

13


Edgard, Louisiana

Notes to Financial Statements

(1) Summarv of Significant Accounting Policies

The accompanying financial statements of the St. John the Baptist Parish Clerk of Court (Clerk of Court) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note. The accompanying financial siatements have been prepared in conformity with GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - f o r State and Local Governments, issued in June, 1999.

Such accounting and reporting procedures also conform lo the requirements of Louisiana Revised Statutes 24:513 and lo the industry audil guide, Audits of Slate and iMcal Governments.

The following is a summary of certain significant accounting policies:

A. Financial Reporting Entity

As provided by Article V, Section 28 of the Louisiana Constitution of 1974, a Clerk of Court serves as the ex-officio notary public, the recorder of conveyances, mortgages and other acts, and shall have olher duties and powers provided by law. A Clerk of Court is elected for a term of four years.

These financial statements only include funds and activides that are controlled by the Clerk of Court as an independently elected parish official. The Clerk of Court is a component unit of the St. John the Baptist Parish Govemment. The Clerk of Court is fiscally dependent on the St. John the Baptist Parish Governmeni since the Clerk of Court's offices are located in the Parish Courthouse, the upkeep and maintenance of the courthouse is paid by the Parish Govemment and certain operaiing expenditures of the Clerk of Court's office are paid by the Parish Government.

As an independently elected official, the Clerk ofCourt is solely responsible for the operations of her office, which includes the hiring or retention of employees, authority over budgeting, responsibility for deficits, and the receipt and disbursement of funds. Certain units of local governmeni over which the Clerk of Court exercises no oversight responsibility, such as the parish school board, other independently elected officials, and municipalities within the parish, are excluded from the accompanying financial statements. These units of governmeni are considered separate reporting eniiiies and issue financial statements separate from that of the Clerk ofCourt.

14


Notes to Financial Statements (continued)

B. Basis of Presentation

Government-Wide Financial Statements

The statement of net assets and statement of activities display informadon about the reporting governmeni as a whole. They include all funds of the reporting entity, which are considered to be governmenlal activities. Fiduciary funds are nol included in the government-wide financial statements. Fiduciary funds are reported only in the Statement of Fiduciary Net Asseis at the fund financial statement level.

The statement of activides presents a comparison between direct expenses and program revenues for each function of the Clerk of Court's governmenlal activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular funcdon. Program revenues include (a) fees and charges paid by the recipients for goods or services offered by the programs, and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particulaj* program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Siatements

The accounts of the Clerk of Court are organized and operated on the basis of funds. A fund is an independent fiscal and accouniing entity with a separate set of self-balancing accounts. Fund accounting segregates funds according lo their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.

The various funds of the Clerk of Court are classified into two categories: governmental and fiduciary. The emphasis on fund financial statements is on major governmental funds. A fund is considered major if it is the primary operating fund of the entity or meets the following criteria:

a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmenlal fund are at least 10 percent of the corresponding total for all funds of that category or lype; and

b. Tolal asseis, liabilities, revenues, or expenditures/expenses of the individual governmental fund are at least 5 percent of the corresponding total for all governmenlal funds combined.

15


Edgard, Louisiana


The major funds of the Clerk of Court are described below:

Governmental Funds -

General Fund The General Fund, as provided by Louisiana Revised Statute 13:781, is the

principal fund of the Clerk of Court and is used to account for the operadons of the Clerk of Court's office. The various fees and charges due lo the Clerk of Court's office are accounted for in this fund. General operating expenditures are paid from this fund.

East Bank Expense Special Revenue Fund

As provided by Louisiana Revised Statute 13:851, an addiuonal cost is assessed in all criminal cases of which the Fordeth Judicial District Court has jurisdicdon. This additional cosl provides support for the Clerk of Court's branch office located on the east bank of the Mississippi River. The collection of the addiuonal cost and related expenses of the east bank office are accounted for in this fund.

Additionally, the Clerk ofCourt reports the following fund lype:

Fiduciary Funds -

Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of other funds within the Clerk of Court. The funds accounted for in this category by the Clerk of Court are the agency funds. The agency funds are as follows:

Advance Deposit Fund - accounts for advance deposils on suits filed by litigants.

Registry of the Court Fund - accounts for funds which have been ordered by the court to be held until judgment has been rendered in court lidgadon.

Criminal Juror Fund - accounts for funds from the parish for criminal court proceedings pending court actions.

Measurement Focus/Basis of Accouniing

Measurement focus is a term used lo describe "which" transactions are recorded within the various financial statements. Basis of accouniing refers to "when" transactions are recorded regardless of the measurement focus applied.

16


Edgard, Louisiana

Notes lo Financial Statements (continued)

Measurement Focus

On the government-wide statement of net asseis and the statement of activities, governmenlal activities are presented using the economic resources measurement focus as defined in item b. below. In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate:

a. The governmental fund utilizes a "current financial resources" measurement focus. Only curreni financial asseis and liabilities arc generally included on its balance sheet. Their operating statement presents sources and uses of available expendable financial resources during a given period. This fund uses fund balance as its measure of available expendable financial resources at the end of the period.

b. The government-wide financial statement utilizes an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operadng income, changes in nel assets (or cost recovery) and financial posiuon. All asseis and liabililies (whether curreni or noncurrent) associated with its acdvides are reporied.

Basis of Accounting

The government-wide statement of net assets and statement of acdvides and the staiemeni of fiduciary nel asseis are presented using the accrual basis of accounting. Under the accrual basis of accounnng, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, asseis, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

Governmental fund financial statements are reported using the curreni financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered lo be available when they are collectible within the current period or soon enough thereafter lo pay liabilides of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures (including capital outlay) generally are recorded when a liability is incurred, as under accrual accouniing. However, debt service expenditures are recorded only when payment is due.

17



D. Assets, Liabilities and Equity

Cash and interest-bearing deposits

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

Capital Asseis

Capital assets, which include furniture, fixtures, and equipmenl, are reported in the governmenlal activities column in the government-wide financial statements. Capital assets are capitalized at historical cost or esdmated cost if historical cosl is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The Clerk of Court maintains a threshold level of $500 or more for capitalizing assets. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asseis lives are not capitalized.

Depreciation of ail exhausdble capital as.sets is recorded as an expense in the statement of activities, with accumulated depreciadon reflected in the statement of net assets. Depreciadon is provided over the assets* esdmated useful lives using the straight-line method of depreciaiion. The range of estimated useful lives by type of asset is as follows:

Furniture, fixtures and equipment 5-10 years

Compensated Absences

Employees of the Clerk of Court's office earn 5 to 20 days of vacation leave each year depending on length of service. In addition, employees earn 12 days of sick leave each year. Employees may carry over 5 days of vacation leave based on their anniversary date. Sick leave may accumulate indefinitely up to two hundred forty (240) hours. Upon resignation or retirement, employees may, at the discretion of the Clerk of Court, be paid for unused vacation at the employee's current rate of pay.


Edgard, Louisiana


Equity Classificadons

In the govemment-wide statements, equity is classified as net asseis and displayed in three components:

a. Invested in capital assets, net of related debt - consists of capital assets including restricted capital assets, net of accumulated depreciadon and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisidon, construcdon, or improvement of those assets.

b. Restricted net asseis - consists of net assets with consiraints placed on their use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through consdtudonal provisions or enabling legisladon.

c. Unrestricted net assets - all other nel assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt."

Effecdve July 1, 2010, the Clerk of Court implemented the provisions of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. Fund balance for the Clerk of Court's governmenlal funds is displayed depicting the relative strength of the spending constraints placed on the purposes for which resources can be used. In the governmenlal fund financial statements, fund balances are classified as follows:

a. Nonspendable - amounts that cannot be spent either because they are in nonspendable form (such as inventories and prepaid amounts) or because they are legally or contractually required to be maintained intact.

b. Restricted - amounts that can be spent only for specific purposes because of consututional provisions or enabling legisladon or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments.

c. Committed - amounts that can be used only for specific purposes determined by a formal action of the government's highest level of decision-making authority.

d. Assigned - amounls the governmeni intends lo use for specific purposes that do nol meet the criteria to be classified as restricted or committed.

c. Unassigned - amounts that arc available for any purpose; these amounts can be reported only in the Clerk of Conn's General Fund.

19


Notes to Financial Siatements (condnued)

Expenditures and Expenses

In the government-wide financial statements, expenses are classified by funcdon. In the fund financial statements, expendilurcs are classified by character and function.

Budgetary and Budgetarv Accounting

The Clerk of Court follows these procedures in establishing the budgetary data reflected in the financial statements:

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

2. A summary of the proposed budget is published and the public is nodfied that the proposed budget is available for public inspecdon. At the same Ume, a public hearing is called.

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

4. After the holding of the public hearing and compledon of all acdon necessary to finalize and implement the budgei, the budget is legally adopted prior to the commencement of the fiscal year for which the budgei is being adopted.

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

6. The budgei is adopted on a basis consistent with generally accepted accoundng principles (GAAP). Budgeted amounts included in the accompanying financial statements are as originally adopted or as finally amended by the Clerk ofCourt.

Bad Debts

Uncollecdble amounls due for receivables are recognized as bad debts by direct write-off at the ume informadon becomes available which would indicate the uncollectibility of the pardcular receivable. Although the specific charge-off method is not in conformity with generally accepted accoundng principles (GAAP), no allowance for uncollectible accounts receivable was made due to immateriality al June 30, 2011.


Notes lo Financial Statements (condnued)

(2) Cash and Interest-Bearing Deposits

Under stale law, the Clerk of Court may deposit funds within a fiscal agent bank organized under the laws of the State of Louisiana, the laws of any other slate in the union, or the laws of the United States. The Clerk of Court may invest in United States bonds, treasury notes, or certificates and lime deposils of stale banks organized under Louisiana law and nadonal banks having principal offices in Louisiana. At June 30, 2011, the Clerk of Court has cash and cash equivalents (book balances) totaling $3,261,615 as follows:

Governmental Fiduciary Acdvides Funds Total

Cash and interest-bearing deposits $ 503,513 $2,758,102 $3,261,615

Under state law, deposits, (or the resulfing bank balances) must be secured by federal deposit insurance or similar federal security or the pledge of securities owned by the fiscal agent bank. The market value of the pledged securifies plus the federal deposit insurance must al all umes equal the amount on deposit with the fiscal agent bank. These securities are held in the name of the Clerk of Court or the pledging fiscal agent bank by a holding or custodial bank that is mutually acceptable to both parties. Deposit balances (bank balances) at June 30, 2011, are secured as follows:

Bank balances $ 3.534,767

Federal insurance $ 2,334,767

Pledged securities 1,200,000

Total federal insurance and pledged securifies $ 3,534,767

Custodial credit risk for deposils is the risk that in ihe event of the failure of a depository financial institution, the Clerk of Court's deposils may not be recovered or will not be able to recover collateral securifies that are in the possession of an outside party. As of June 30, 2011, the Clerk of Court's total bank balances were fully insured and collateralized with securities held in the name of the Clerk of Court by the pledging financial institution's agent and iherefore not exposed to custodial credit risk.

(3) Due From Olher Governments

Amounls due from other govemments consist ofthe following at June 30, 2011:

Government-wide and fund financial statements: St. John the Bapdsl Parish Sheriffs Department State of Louisiana District Attorney for the Fortieth Judicial District District Court for the Fortieth Judicial District Louisiana Department of Public Safely

Total

$

$

26,966

3.828

1,290

256 1,425

33,765



(4) Capital Assets

Capital asset balances and aefivity for the year ended June 30, 2011 is as follows:

Furniture, fixtures and equipment

Less; Accumulated depreciafion

Nel capital assets

Depreciafion expense of $22,380 was charged to the general governmeni funcfion.

(5) Accounts and Other Payables

The accounts and other payables consisted of the following at June 30, 2011:

(6)

Balance 07/01/10

$ 421,283 357,791

S 63,492

Additions $ 10,1-59

22,380

$ (12,221)

Deiefions $

-

$

Balance 06/30/11

$ 431,442 380,171

$ 51,271

Accounts Accrued payroll liabilities

Tolal

Pension Plan

Governmental Acfivifies

$ 12,295 340

$ 12,635

Plan Description. Substanfially all employees of the Clerk of Court are members of the Louisiana Clerks of Court Refirement and Relief Fund (System), a cost sharing, multiple-employer defined benefit pension plan administered by a separate board of trustees.

All regular employees who are under the age of 60 at the fime of original employment are required to participate in the System. Employees who retire at or after age 55 with at least 12 years of credited service are enfided to a refirement benefit, payable monthly for life, equal to 3% of their final-average salary for each year of credited service, not to exceed 100% of their final-average salary. Final-average salary is the employee's average salary over the 36 consecutive or joined months that produce the highest average. Employees who terminate with al least 12 years of service and do nol withdraw their employee conlribufions may retire at or after age 55 and receive the benefit accrued to their dale of termination. The System also provides death and disability benefits. Benefits are established and amended by stale statute.

The Clerk of Court Retirement and Relief Fund issues an annual publicly available financial repori that includes financial sialements and required supplementary informafion. That report may be obtained by writing lo the Clerk of Court Retirement and Relief Fund. 11745 Bricksome Ave., Suite B-1, Baton Rouge, Louisiana 70816.

97


Notes lo Financial Statements (confinued)

Funding Policy. Plan members are required by state statute to contribute 8.25% of their annual covered salary and the Clerk of Court is required to contribute at an actuarially determined rate. The curreni rate is 17.75% of annual covered payroll. Contribufions to the System also include one-fourth of one percent of the taxes shown to be collecfible by the lax rolls of each parish. The contribution requiremenis of plan members and the Clerk of Court are established and may be amended by state statute. As provided by R.S. 11:103, the employer conlribufions are determined by actuarial valuafion and are subject to change each year based on the results of the valuafion for the prior fiscal year. The Clerk of Court pays employee and employer pension contribufions. The Clerk of Court's conlribufions to the System for the years ending June 30, 2011, 2010, and 2009, were $261,607, 5232,268, and $189,785, respecfively, equal to the required conlribufions for each year.

(7) Postemployment Benefits Other than Pensions

Effective with the fiscal year beginning July 1, 2009, the Clerk of Court implemented Governmeni Accounfing Standards Board Statement Number 45, Accounting and Financial Reporting hy Employers for Postemployment Benefits Other than Pensions (GASB 45). The requirements of GASB 45 are being implemented prospecfively. Accordingly, for financial reporfing purposes, no liability is reported for postemployment benefits liability al the date of transition.

Plan Description. The Clerk of Court's defined benefit postemployment health care plan ("the Refiree Health Plan") provides medical, dental and life insurance benefits lo eligible refired employees and their beneficiaries. The Redree Health Plan is affiliated with the Louisiana Clerks of Court Insurance Trust ("LCCIT"), an agent mulfiple-employer postemployment healthcare plan administered by the Louisiana Clerks of Court Associafion. The plan does not issue a publicly available financial report.

Funding Policy. The contribufion requirements of plan members and the Clerk of Court are established and may be amended by the LCCIT board of trustees. The Clerk of Court contributes 50% of the cost of the current-year premiums for eligible retired plan members and 0% of the cost for refired plan members' spouses and dependent children. For fiscal year 2011, the Clerk of Court contributed $15,758 to the plan and the retirees contributed $23,525.

Annual OPEB Cosl and Net OPEB Obligafion. The Clerk of Court's annual other postemployment benefit ("OPEB") cost (expense) is calculated based on the annual required contribution of the employer ("ARC"), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents the level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabililies (or funding excess) over a period not to exceed thirty years.

23



The following table shows the components of the Clerk of Court's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Clerk of Court's net OPEB obligation to the Retiree Health Plan:

Annual required contribufion $ 90,374 Interest on nel OPEB obligafion 2,972 Adjustmeni to annual required contribufion (2,553)

Annual OPEB cost (expense) 90,793 Contribufions made (15,758)

Increase in net OPEB obligation 75.035 Net OPEB obligafion - beginning of y&m 74.300

Net OPEB obligation - end of year $ 149.335

The Clerk of Court's annual OPEB cosl, the percentage of annual OPEB cost contributed to the plan, and the nel OPEB obligafion for fiscal year 2011 and 2010 are as follows:

Fiscal Percentage of Year Annual Annual OPEB Net OPEB Ended OPEB Cost Cosl Contributed Obligafion

6/30/2011 $90,793 17.4% 5149,335 6/30/2010 $87,821 15.4% 574,300

The year ended June 30, 2010 was the implementafion year of GASB 45 and the Clerk of Court has elected to implement the standard prospectively. Therefore, comparafive data is only available for two years. In future years, three-year trend informafion will be presented.

Funded Status and Funding Progress. As of July I, 2009, the actuarial accrued liability for benefits was $1,022,249, all of which was unfunded. The covered payroll (annual payroll of acfive employees covered by the plan) was $922,324, and the ratio of the unfunded actuarial accrued liability to the covered payroll was I 10.8%.

The projection of future benefit payments for an ongoing plan involves esfimates ofthe value of reported amounts and assumptions about the probability of occurrence of events into the future. Examples include assumpfions about future employment, mortality, and the healthcare cosl trend. Amounts determined regarding the funding status of the plan and the annual required coniributions of the employer are subject lo confinual revision as actual results are compared wilh past expectafions and new estimates are made about the future. The schedule of funding progress, presented as required supplementary informafion following the notes lo the financial statements, presents multiyear trend information about whether the actuarial value of the plan asseis is increasing or decreasini: over time relafive to the actuarial accrued liabilifies for the benefits.

24



Methods and Assumpfions. Projecuons of benefits for financial reporfing purposes are based on the substanfive plan (the plan as understood by the employer and plan members) and include the lype of benefits provided at the time of each valuafion and the historical pattern of sharing or benefit costs between the employer and plan members to that point. The actuarial methods and assumpfions used include techniques that are designed to reduce short term volatility in actuarial accrued liabililies and the actuarial value of assets, consistent with the long-term perspective of the calculafions.

In the July 1, 2009 actuarial valuafion, the entry age actuarial cost method was used. Based on the Clerk of Court's short-term investment portfolio, a discount rate of 4.0% was used. In addition, the actuarial assumpfions included an annual healthcare cost trend rate of 10% inifially, reduced by decrements to an ulfimate rate of 5.5% after 10 years. The Clerk of Court's unfunded actuarial liability is being amorfized as a level percentage of projected payroll on an open basis over 30 years.

(8) Changes in Long-term liabilities

The following is a summary of long-term liabiUly transacfions of the Clerk of Court for the year ending June 30, 2011:

07/01/10 Addifions Reducfions 06/30/11

Compensated Absences $ 17,906 $ 15,451 $ 17,906 S 15,451

In prior years, compensated absences have typically been liquidated by the Clerk of Court's General Fund.

(9) Fund Balance

Fund balance is classified as nonspendable, restricted, committed, assigned, and/or unassigned based primarily on the extent to which the Clerk of Court is bound to observe constraints imposed upon the use of the resources in the govcrnmenlai funds. The constraints placed on fund balance for the major governmental funds and all other governmental funds are presented as follows:

East Bank General Expense Tolal

Fund balances: Nonspendable -

Prepaid items

Restricted for -Special programs

Unassigned Total fund balances

S 1,107

-

511,939

$ 513,046

S

47,297

_

$ 47,297

$ 1,107

47,297

511,939 5 560,343

25



(10) Changes in Agencv Fund Balances

A summary of changes in agency fund unsettled deposils follows:


,gency funds: Advance Deposit Registry of Court Criminal Juror

Totals

Unsettled Deposils

at Beginning of Year

$1,917,963 634,789

5,375 $2,558,127

Addifions

$1,239,290 319,063

57,313 $1,615,666

Reductions

$1,023,633 334,943

57,115 $1,415,691

Un.settled Deposils at End of Year

52,133,620 618,909

5,573 52,758,102

(11) Deferred Compensation Plan

The Clerk of Court offers its employees participafion in the Louisiana Public Employees Deferred Compensation Plan adopted by the Louisiana Deferred Compensafion Commission and established in accordance with Internal Revenue Code Secfion 457. Complete disclosures relafing to the Plan are included in the separately issued audil report for the Plan, available from the Louisiana Legislafive Auditor, Post Office Box 94397, Baton Rouge, Louisiana 70804-9397.

The Clerk of Court's conlribufions lo the Plan for the year ending June 30, 2011, 2010, and 2009, were $37,973, 536,772, and $34,127, respecfively.

(12) Risk Management

The Clerk of Court is exposed lo risks of loss in the areas of auto liability, professional liability and workers' compensafion. All of these risks are handled by purchasing commercial insurance coverage. There have been no significant reducfions in the insurance coverage during the year.

(13) Excess Fund Balance

LSA-RS 13:785 requires that every four years (at the close ofthe term of office), the Clerk of Court must pay the parish treasurer the porfion of the General Fund's fund balance that exceeds one-half of the revenues of the Clerk of Court's last year of her term of office. The potential liability to the parish is limited to amounts received by the Clerk of Court from the parish for necessary office furniture, equipment, and record books. At June 30, 2011 there was no amount due the parish treasurer because fund balance did not exceed one-half of recorded revenues.

26

ST. JOHN THE BAPTIST PARISH CLERK OF COURT Edgard. Louisiana


(14) Expenditures of the Clerk of Court Paid bv the St. John the Bapfist Parish Govemment

The Clerk of Court's office is located in the St. John the Baptist Parish Courthouse. The upkeep and maintenance of the courthouse are paid by the St. John the Bapfist Parish Council. In addifion, the Parish Council also pays some of the Clerk of Court's operafing expenditures. These expenditures are not reflected in the accompanying financial statements.

REQUIRED SUPPLEMENTARY INFORMATION

28


Budgetary Comparison Schedule General Fund


Budget

Original Final Actual

Variance with Final Budget

Pos i five (Negative)

Revenues: Licenses and permits Fees, charges and commissions

8,000 $ 7,100 $ 7,365 S 265

Court costs, fees and charges Fees for recording legal documents Fees for certified copies

Intergovemmental Interest earnings

Total revenues

Expenditures: Current -

General govemment: Personnel services and related benefits Operafing services Material and supplies

Debt service

Capital oufiay

Total expenditures

Net change in fund balances



493,000 914,000

70,000 80,000 50.000

1,615,000

1,396,000 191,800 95,200 23,000 20,000

1,726,000

(111,000)

(188.733)

5 (299,733)

569,500 879,500

87,900 48,700 31,000

1,623,700

1,286,250 208,900

87,700 20,000 20,000

1,622,850

850

186,966

$ 187,816

579,500 935,521 107,871 38,026 32,273

1,700,556

1,357,289 186,163 69,346

-6,193

1,618,991

81,565

431,481

$ 513,046

10,000 56,021 19,971

(10,674) 1,273

76,856

(71,039) 22,737 18,354 20,000 13,807

3,859

80,715

244,515

$ 325,230

See accompanying notes to budgetary comparison schedules.

29


Budgetary Comparison Schedule East Bank Expense Fund Year Ended June 30, 2011

Variance with Final Budeet

Revenues: Fees, charges and commissions -

Court costs, fees and charges Interest earnings

Total revenues

Expenditures: Curreni -

Personnel services and related benefits Operating services Material and supplies

Capital outlay Tolal expenditures

Nel change in fund balances



Bu( Original

5 145,000 -

145,000

154,000 11,000 3,000 5,000

173,000

(28,000)

8,083

5 (19,917)

Igei

$

-

L

Final

185,000 85

185,085

158,150 12,000 4,500 5,000

179,650

5,435

36,119

41,554

Actual

S 214,081 -

214,081

185,125 11,478 5,666 3,966

206,235

7,846

39,451

S 47,297

Posifive (Negative)

$ 29,081 (85)

28,996

(26,975) 522

(1,166) 1,034

(26,585)

2,411

3,332

$ 5,743

See accompanying notes to budgetary comparison schedule.

30


Notes to Budgetary Comparison Schedules

(1) Basis of Accounting

The budgei is adopted on a basis consistent with accounfing principles generally accepted in the United Slates of America (GAAP). Budgeted amounls are as originally adopted or as finally amended by the Clerk of Court.

(2) Excess of Expenditures over Appropriafions

The following fund incurred expenditures in excess of appropriafions for the year ended June 30,2011:

Special Revenue Fund: East Bank Expense Fund $ 26,585

The excess expenditures were covered by available fund balance in the respective fund.


Schedule of Funding Progress Postemployment Benefits Other than Pensions

YearEndedJune 30,2011

Actuarial Valuation

Date

6/30/2009

Actuarial Value of

Assets (a)

$0

Actuarial Accrued Liabihty

(AAL)-Entry Age (b)

$1,022,249

Unfunded AAL

(UAAL) (b-a)

$1,022,249

Funded Ratio (a^)

0.0%

Covered Payroll

(c)

$922,234

UAAL as a Perceritage Of Covered

Payroll ((b-a)/c)

110.8%

32

INTERNAL CONTROL, COMPLIANCE, AND OTHER INFORMATION

33

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC Ru!rjrF.'c.l:lnp'g'';.cHA- CERTIFIED PUBLIC ACCOUNTANTS Victor R Slaven, CPA- O F F I C E S P. Troy Courville, CPA* ^ ^ ^ ^ ^ ^ ^ ^ ^ ^

Gerald A. Thiboduiiux. Jr .CPA' 133 g ^ , j ^ 3^^^ ,^ f^^ ^ ^ ^ast Main Street

Robert S. Carter, CPA' Laiayetle.LA 70608 New Iberia. LA 70560 Arthur R. Mixon. CPA' p^^^^ (33^^ 232-4141 Phone (337) 367-9204

Fax (337) 232-8660 Fax (337) 367-9208 Tynes E. Mixon.Jr. . C^A

Allen J. LaBry. CPA 113 EastBridge Si. 200 South Main Street Albert R. L^ger. CPA.PFS.CSA' Breai^x Br.dge. LA 70517 Abbevil le. LA 70510 Penny Angelie Scruggins. CPA p ^ ^ ^ (337j 332.4020 Phone (337) 893-7944 Christine L. Cousin. CPA ^.^^ ,337j 332.2867 Fax (337) 893-7946 MaryT.Th ibodeaux. CPA

MarshaWW Gaa i y .CP f^ 1234 David Dr. Ste 203 1013 Main Sireet Alan M.Taylor. CPA Morgan City. LA 70380 Franklin, LA 70538 James R. Roy, CPA p ^ ^ ^ ^gggj 384-2020 Phono (337) 828-0272 Robert J. Metz. CPA P^,, ^gggj 384-3020 Fax (337) 828-0290 Ke l l yM. Douce: . CPA

Cheryl L. Bariley. CPA ^ g ^ ^ ^ Cotton Street 133 East Waddi l St.

I ? n ^ ^ " ' t ' . ^ ' " ^ ' ' ' ^ " ^ - ^ ^ ^ °^86 Marksville LA 71351 Paul L Delcambre. Jr. U ' A f ^ ^ ^ (337j 3C3-2792 Phone (318) 253-9252 Wanda F. Areement. CPA. CVA Fax (337) 363-3049 Fax (318) 253-8681 Kristin B. Dauzat. CPA

Richard R. Anderson Sr.. CPA 332 West Sixth Avenue 621 Main Street Carolyn C. Andersu.1. CPA ^ ^ ^ - ^ ^ LA 70655 Pineville. LA 71360

Phone (337) 639-4737 Phone (318) 442-4421 Fax (337) 639-4568 Fax (318) 442-9833 Retired:

Conrad 0 . Chapman. CPA' 2 M 6 Harry J .Clost io .CPA 2007 W E B S I T E

. ^ , . WWW.KCSRCPAS.COM • A Profassona. Acctunting Coruo'at.a."

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDFIING STANDARDS

The Honorable Eliana DeFrancesch St. John the Bapnst Parish Clerk ofCourt Edgard, Louisiana

We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Si. John the Baptist Parish Clerk of Court (hereinafter "Clerk of Court"), a component unit of the St. John the Baptist Parish Government, as of and for the year ended June 30, 2011, which collectively comprise the Clerk of Court's basic financial statements, and have issued our report thereon dated December 20, 2011. Wc conducted our audit in accordance with audiiing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control over Financial Reporting

The Clerk ofCourt and management is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the Clerk of Court's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk of Court's internal control over financial reporting. Accordingly, we do nol express an opinion on the effectiveness of the Clerk of Court's iniernal control over financial reporting.

Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. Ilowever, as described in the accompanying schedule of audit results and findings, we identified a certain deficiency in internal control over financial reporting that we consider to be material a weakness.

Member ol: Member of: AMERICAN INSTITUTE OF " ^ 4 SOCIETY OF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS " CERTIFIED PUBLIC ACCOUNTANTS

http://WWW.KCSRCPAS.COM

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or deled and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Clerk of Court's financial siatements will nol be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying schedule of audit results and findings as item 201 l-l to be a material weakness.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Clerk of Court's financial statements are free of material misstatement, we performed tesls of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tesls disclosed an instance of noncompliance or other matter that is required lo be reported under Government Auditing Standards and is described in the accompanying schedule of audit results and findings as item 2011-2.

The Clerk of Court's responses to the findings identified in our audil are described in the accompanying corrective action plan for current year findings. We did nol audit the Clerk of Court's responses and, accordingly, we express no opinion on the responses.

This report is intended solely for the information and use of the Clerk of Court, management and others within the organization, and the Louisiana Legislative Auditor and is not intended to be and should not be used by anyone other than these specified parties. Although the intended use of this report may be limited under the provisions of Louisiana Revised Statutes 24:513, this report is distributed by the Louisiana Legislative Auditor as a public document in accordance with Louisiana Revised Statute 44:6.

Koider, Champagne, Slaven & Company, LLC Certified Public Accountants

Morgan City, Louisiana December 20, 2011

35


Schedule of Audit Results and Findings Year Ended June 30, 2011

Part I. Summary of Auditor's Results:

The auditor's report expresses an unqualified opinion on the financial statements ofthe governmental activities, each major fund (General Fund and East Bank Expense Fund), and the aggregate remaining fund information.

A material weakness in internal control was disclosed by the audit ofthe financial statements.

The results of our test disclosed an instance of noncompliance which is required lo be reported under Governmeiu Auditing Standards and is shown as item 2011-2 in Part II.

A management letter was nol issued.

Part II. Findings required to be reported in accordance with Governmental Auditing Standards:

A. Internal Control

2011-1 Segregafion of dufies

CONDITION: Accouniing and financial functions are not adequately segregated.

CRITERIA: Internal control is a process effected by those charged with governance, management, and other personnel designed to provide reasonable assurance about the achievement of objecfives with regard to reliability of financial reporfing, effecfiveness and efficiency of operalions, and compliance with applicable laws and regulafions. The Clerk of Court's internal control over financial reporting includes those policies and procedures that pertain to the Clerk of Court's ability to record, process, summarize, and report financial data consistent with the asserfions embodied in either annual financial statements or interim financial statements, or both.

CAUSE: The cause of the conditions is the failure to design and implement policies and procedures necessary to achieve adequate internal control.

EFFECT: Failure to adequately segregate accounting and financial functions increases the risk that errors and/or irregularities including fraud and/or defalcations may occur and not be prevented and/or detected.

RECOMMENDATION: The additional costs required to achieve the desired benefit may not be economically feasible.

36


Schedule of Audil Results and Mndings (confinued) Year Ended June 30, 2011

B. Compliance

2010-3 Budget Variance

CONDITION: Budget variance in excess of 5% was incurred in the General Fund.

CRITERIA: Louisiana Revised Statute 39:1311 states, in perfinent part, the following:

"A. The adopted budget and any duly authorized adopted amendments shall form the framework from which the chief executive or administrative officers and members of the governing authority of the polifical subdivision shall monitor revenues and control expenditures. The chief executive or administrafive officer for a political subdivision subject to public participafion shall advise the governing authority or independently elected official in wrifing when:

(1) Total revenue and other sources plus projected revenue and other sources for the remainder of the year, within a fund, are failing to meet total budgeted revenues and other sources by five percent or more.

(2) Tolal actual expendilurcs and other uses plus projected expenditures and other uses for the remainder of the year, within a fund, are exceeding the total budgeted expenditures and olher uses by five percent or more.

(3) Actual beginning fund balance, within a fund, fails to meet esfimated beginning fund balance by five percent or more and fund balance is being used to fund current year expenditures.

CAUSE: The condifion results from a failure to properly monitor the revenues and expenditures ofthe East Bank Expense Fund.

EFFECT: The Clerk of Court may not prevent and/or detect compliance violations due to over expenditure of the appropriated budget, and/or errors or irregularities on a fimely basis.

RECOMMENDATION: We recommend that the Clerk of Court periodically compare actual aefivity to budgeted amounls and adopt budgetary amendments as necessary to cause compliance with state statute.

Part III. Findings and quesfioned costs for federal awards required to be reported in accordance with Office of Management and Budget Circular A-133:

The requirements of OMB Circular A-133 do not apply to the Clerk of Court.

37


Summary Schedule of Prior Audit Findings Year Ended June 30. 2011

A. Internal Control -

2010-1 - Segregafion of Duties

CONDITION: Accounting and financial funclions are not adequately segregated.

RECOMMENDATION: Due to the size of the operation and the cost-benefit of additional personnel, it may nol be feasible to achieve complete segregation of duties.

CURRENT STATUS: See schedule of audit results and findings item 201 M.

2010-2-Applicafion of GAAP

CONDITION: Management and staff lack the training and expertise in the selecfion and applicafion of GAAP in the financial staiemeni preparation process.

RECOMMENDATION: The additional costs required to achieve the desired benefit may not be economically feasible.

CURRENT STATUS: This finding is no longer applicable.

B. Compliance-

There were no findings previously reported under ihis section.

C. OMB A-133-

This seclion was not applicable.

38


Correcfive Acfion Plan for Current Year Findings Year Ended June 30, 2011

2011-1 - Segregafion of Dufies

CONDITION: Accouniing and financial funcfions are not adequately segregated.

MANAGEMENT'S RESPONSE: Not Applicable

201 \~2 - Budget Variance

CONDITION: Budget variance in excess of 5% was incurred in the Easibank Expense Fund.

MANAGEMENT'S RESPONSE: We will more closely monitor budget to actual comparisons and adopt the necessary amendments to insure compliance with state statues.

39

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