2007 APR-2 PMI2'I8app1.lla.state.la.us/PublicReports.nsf/EAB261F26BA... · 2007 APR-2 PMI2'I8 WEST BATON ROUGE PARISH SCHOOL BOARD PORT ALLEN, LOUISIANA FINANCIAL STATEMENTS YEAR

RECEIVEDLEGIS! AT.'VE AIJOfTO?

2007 APR-2 PMI2'I*8

WEST BATON ROUGE PARISH SCHOOL BOARDPORT ALLEN, LOUISIANA

FINANCIAL STATEMENTS

YEAR ENDED JUNE 30,2006

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

Release Date T^<2- $~ ~ Q 7


TABLE OF CONTENTSJUNE 30, 2006

PAGE

Independent Auditors' Report 1 - 2

REQUIRED SUPPLEMENTARY INFORMATION - PART I

Management's Discussion and Analysis 3 - 7

BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements (GWFS)

Statement of Net Assets 8

Statement of Activities 9

Fund Financial Statements (FFS)

Government Funds

Balance Sheet 10

Reconciliation of the Government Funds Balance Sheetto the Statement of Net Assets 11

Statement of Revenues, Expenditures, and Changes inFund Balances 12

Reconciliation of the Governmental Funds Statement of Revenues,Expenditures, and Changes in Fund Balances to the Statementof Activities 13

Fiduciary Funds

Statement of Fiduciary Net Assets 14

Notes to Financial Statements - June 30, 2006 1 5 - 3 0

WEST BATON ROUGE PARISH SCHOOL BOARDPORT ALLEN. LOUISIANA


(Continued)

PAGEREQUIRED SUPPLEMENTARY INFORMATION - PART II

Major Fund Descriptions 31

Budgetary Comparison Schedules

General Fund 32

Capital Projects Fund 33

Debt Service Fund 34

Educational Facilities Improvement District Fund 35 •

OTHER SUPPLEMENTAL INFORMATION

Non-Major Government Funds

Non-Major Fund Descriptions 3 6 - 3 8

Combined Balance Sheet 39

Combined Statements of Revenues, Expenditures andChanges in Fund Balance 40

Combining Balance Sheet 4 1 - 4 4

Combining Statements of Revenues, Expenditures andChanges in Fund Balance 45 - 50

Agency Fund

Schedule of Changes in Deposit Balances of IndividualSchools - School Activity Funds 51

Other Schedule

Schedule of School Board Members' Compensation 52

11



(Continued)PAGE

Independent Auditors' Report on Compliance and on Internal ControlOver Financial Reporting Based on an Audit of Financial StatementsPerformed in Accordance with Government Auditing Standards 53 - 54

Independent Auditors' Report on Compliance with Requirements Applicableto Each Major Program and Internal Control Over Compliance inAccordance with OMB Circular A-133 55 - 56

Schedule of Expenditures of Federal Awards 57

Notes to the Schedule of Expenditures of Federal Awards 58

Schedule of Findings and Questioned Costs 59 - 60

PERFORMANCE AND STATISTICAL DATA

Independent Auditors'Report on Applying Agreed-Upon Procedures 6 1 - 6 3

Prescribed Schedules 64 - 72

ERIC J. VICKNAIR, CPA ARC(CERTIFIED PUBLIC ACCOUNTANTS)

INDEPENDENT AUDITORS' REPORT

West Baton Rouge Parish School BoardPort Allen, Louisiana

We have audited the accompanying financial statements of the government activities, each majorfund, and the aggregate remaining fund information of


as of and for the year ended June 30, 2006, which collectively comprise the School Board's basicfinancial statements as listed in the table of contents. These financial statements are theresponsibility of School Board's management. Our responsibility is to express an opinion onthese financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financial statements. An audit alsoincludes assessing the accounting principles used and significant estimates made by management,as well as evaluating the overall financial statement presentation. We believe that our auditprovides 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 governmental activities, each major fund, and theaggregate remaining fund information of West Baton Rouge Parish School Board, as of June 30,2006, and the respective changes in financial position, thereof for the year then ended inconformity with accounting principles generally accepted in the United States of America.

The Management's Discussion and Analysis on pages 3 through 7 and budgetary comparisoninformation on pages 32 through 35 are not a required part of the basic financial statements butare supplementary information required by accounting principles generally accepted in the UnitedStates of America. We have applied certain limited procedures, which consisted principally ofinquiries of management regarding the methods of measurement and presentation of thesupplementary information. However, we did not audit the information and express no opinionon it.

(SEND ALL CORRESPONDENCE TO THE BATON ROUGE ADDRESS)

PHONE: (225) 292-1O4O2933 BRAKLEY DRIVE, SUITE B BATON ROUGE. LOUISIANA 7O816 FAX: (225)292-1041564 FERDNAND STREET ST. FRANCISVILLE, LOUISIANA 70775 PHONE: (225) 635-42O4

1

ERIC J. VICKNAIR, CPA APC(CERTIFIED PUBLIC ACCOUNTANTS)

Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the West Baton Rouge Parish School Board's basic financial statements.The accompanying other supplementary information on pages 39 through 52 are presented forpurposes of additional analysis and are not a required part of the basic financial statements. Theaccompanying schedule of expenditures of federal awards is presented for purposes of additionalanalysis as required by U. S. Office of Management and Budget A-133, Audits of States, LocalGovernments, and Non-Profit Organizations, and is also not a required part of the basic financialstatements of West Baton Rouge Parish School Board, Port Allen, Louisiana. The othersupplementary information and the schedule of expenditures of federal awards have beensubjected to the auditing procedures applied in the audit of the basic financial statements and, inour opinion, are fairly stated in all material respects in relation to the basic financial statementstaken as a whole. The information included in the performance and statistical data on pages 64through 72 have not been subjected to the auditing procedures applied in the audit of the basicfinancial statements and, accordingly, we express no opinion on them.

In accordance with Government Auditing Standards^ we have also issued our report dated March27, 2007 on our consideration of West Baton Rouge Parish School Board's internal control overfinancial reporting and our tests of its compliance with laws, regulations, contracts and grants.That report is an integral part of an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report in considering the results of ouraudit.

Baton Rouge, Louisiana ^ 0March 27, 2007 / ^

REQUIRED SUPPLEMENTARY INFORMATION - PART I

Management's Discussion and Analysis

As management of the West Baton Rouge Parish School Board (hereinafter, School Board), weoffer readers of the School Board's financial statements this narrative overview and analysis ofthe financial activities of the School Board for the fiscal year ended June 30, 2006. Weencourage readers to consider the information presented here in conjunction with additionalinformation that we have furnished in our letter of transmittal. All amounts, unless otherwiseindicated, are expressed in thousands of dollars.

Financial Highlights

a The assets of the School Board exceeded its liabilities at the close of the fiscal yearby $15,392 (net assets). Of this amount, $9,992 (unrestricted net assets) may beused to meet the School Board's ongoing obligations to citizens and creditors.

a The School Board's total net assets increased by $3,861.

a The State MFP funds increased by $407 from prior year.

Overview of the Financial Statements

This discussion and analysis are intended to serve as an introduction to the School Board's basicfinancial statements. These basic financial statements are composed of three components: 1)government-wide financial statements; 2) fund financial statements; and, 3) notes to the financialstatements. The financial statements also contain other supplemental information in addition tothe basic financial statements themselves.

Government-wide financial statements. The government-wide financial statements aredesigned to provide readers with a broad overview of the School Board's finances, in a mannersimilar to a private-sector business.

The statement of net assets presents information on all of the School Board's assets andliabilities, with the difference between the two reported as net assets. Over time, increasesor decreases in net assets may serve as a useful indicator of whether the financial positionof the School Board is improving or deteriorating.

The statement of activities presents information showing how the government's net assetschanged during the most recent fiscal year. All changes in net assets are reported as soonas the underlying event giving rise to the change occurs, regardless of the timing of relatedcash flows. Thus, revenues and expenses are reported in this statement for some items thatwill only result in cash flows in future periods (e.g., uncollected taxes and earned by unusedsick leave).

Both of the government-wide financial statements present functions of the School Boardthat are principally supported by taxes and intergovernmental revenues (governmentalactivities). The School Board has no functions or activities which are business-like innature, meaning that they are primarily supported by user fees and charges for services,

such as a municipally owned utility system. The governmental activities of the SchoolBoard include regular and special education programs, support services, administration,maintenance, student transportation and school food services. The School Board containsno other units of government (component units) nor is it contained as a component unit ofany other level of local or state government.

Fund financial statements. A fund is a grouping of related accounts that is used tomaintain control over the resources that have been segregated for specific activities or objectives.The School Board, like other state and local governments, used fund accounting to ensure anddemonstrate compliance with finance-related legal requirements. All of the funds of the SchoolBoard can be divided into two categories: governmental funds and fiduciary funds.

Governmental funds. Governmental funds are used to account for essentially the samefunctions reported as governmental activities in the government-wide fmancials statements.However, unlike the government-wide financial statements, governmental fund financialstatements focus on near-term inflows and outflows of spendable resources, as well as onbalances of spendable resources available at the end of the fiscal year. Such information may beuseful in evaluating a government's near term financing requirements.

Because the focus of governmental funds is narrower than that of the government-widefinancial statements, it is useful to compare the information presented for governmentalfunds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-termimpact of the School Board's financial position. Both the governmental fund balance sheetand the governmental fund statement of revenues, expenditures and changes in fundbalances provide a reconciliation to facilitate this comparison between governmental fundsand governmental activities.

The School Board maintains individual governmental funds. Information is presentedseparately in the governmental fund balance sheet and in the governmental fund statementof revenues, expenditures and changes in fund balance for the General Fund, Debt ServiceFund, Capital Projects Fund and the EFID Sales Tax Fund, all of which are considered tobe major funds. The remaining funds are combined into a single, aggregated presentationunder the label of other governmental funds, which contains all the non-major funds.Individual fund data for each of these non-major funds is provided in the form ofcombining statements elsewhere in the financial statements.

The School Board adopts annual appropriated budgets for all funds except expendituresdriven by grant funds. Budgets for those types of grants funds are submitted by the grantsupervisor to the Louisiana Department of Education, which approves the grant budgetsand, through which flows requests for reimbursement. In virtually all cases, revenuesreceived will equal expenditures and transfers of indirect costs, meaning that these funds donot have fund balances to carry forward to future periods. The School Board does adoptformal budgets for the General Fund, Debt Service Fund, Capital Projects Fund, EFIDSales Tax Fund and those Special Revenue Funds which are funded by local taxes.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit ofoutside parties such as students. Fiduciary funds are not reflected in the government-widefinancial statements because the resources of those funds are not available to support the SchoolBoard's programs. The sole fiduciary fund of the School Board is the School Activity Fund,which contains monies belonging to the schools, their students, and clubs or other activities.

Notes to the financial statements. The notes provide additional information that isessential to a full understanding of the data provided in the government-wide and fund financialstatements.

Other information. In addition to the basic financial statements and accompanying notes,this report also presents certain required supplementary information. Included therein are thecombining statements referred to earlier in connection with non-major governmental funds.Also, under the label of other supplementary information can be found data on individual schoolactivity funds, capital assets, and information required to be presented by state statute.

Financial Analysis of the School Board's Funds

As noted earlier, net assets may serve over time as a useful indicator of a government's financialposition. In the case of the School Board, assets exceeded liabilities by $15,392 at the close ofthe most recent fiscal year.

Statement of Net Assets

ASSETSCurrent and other assetsCapital assets

Total assets

June 30,2006 2005

14,04214,239

28,281

$ 11,01415,142

26,156

LIABILITIESCurrent liabilitiesNon-current liabilities

4,0648,825

4,33410291

Total liabilities 12,889 14,625

NET ASSETSInvested in capital assets, net of related debtReserved for debt serviceUnrestricted

Total net assets

Changes in Net Assets

Year Ended June 30,2006 2005

Revenues:Charges for servicesOperating grantsGeneral revenues:

Property taxesSales and use taxesMinimum Foundation ProgramOther

Total revenues

3656,832

3525,234

5,7767,1859,961

53929,047

Expenses:InstructionStudent and staff supportAdministrationPlant servicesStudent transportationFood servicesDebt servicesOther

Total expenses

Increase (decrease) in net assets

Net assets - beginning of year

Net assets - end of year

16,5542,3324,0822,4591,5992,076404147

29,653

16,1012,2114,2072,3411,6902,012490166

29,218

Capital Asset and Debt Administration

Capital assets. The School Board's investment in capital assets as of June 30,2006 amountsto $14,239 (net of accumulated depreciation). This investment includes land, buildings andimprovements, furniture, machinery and equipment.

June 30,

LandBuildings & ImprovementsFurniture & EquipmentLess: Accumulated depreciation

Total, net of depreciation

2006

$ 98628,675

1,094(16,516)

J1A23SL

2005

$ 98628,501

1,163(15,508)$15.142

Long-term debt. At the end of the current fiscal year, the School Board had bonded debtoutstanding of $9,590. This entire amount is from the 1999 Series Refunding bonds.

During the year, bond principal of $1,330 of the 1999 bonds was paid, as was interest in theamount of $495.

Variations Between Original and Final Budgets

During the year, the School Board revised the budget once. Significant changes were increasesto salaries and related benefits.

Economic Factors and Next Year's Budget

According to the West Baton Rouge Parish Tax Assessor, there should be an increase in taxableassessed valuation in the 10% range due to construction of residential homes.

Requests for Information

This financial report is designed to provide a general overview of the School Board's finances forthose with an interest in the government's financial position and operations. Questionsconcerning any of the information provided in this CAFR or requests for additional informationshould be addressed to Adele O. English, Business Manager, West Baton Rouge Parish SchoolBoard, 3761 Rosedale Road, Port Allen, LA 70767.

GOVERNMENT-WIDE FINANCIAL STATEMENTS


STATEMENT OF NET ASSETSJUNE 30,2006

ASSETSCurrent assets

Cash and cash equivalents $ 5,135,253Investments 5,077,127Receivables 3,802,412Inventory 27,182

Non-current assets

Capital assets, net of accumulated depreciation 14,239,250

TOTAL ASSETS 28.281.224

LIABILITIESCurrent liabilities

Accounts, salaries and other payables 2,549,061Interest payable 109,211Bonds payable, due within one year 1,405,000

Non-current liabilitiesCompensated absences payable, due after one year 640,580Bonds payable, due after one year 8.185.000

TOTAL LIABILITIES 12.888.852

NET ASSETSInvested in capital assets, net of related debt 4,649,250Resserved for:

Debt service 751,233Unreserved - Undesignated 9.991.888

TOTAL NET ASSETS 15.392.371

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

West Baton Rouge Parish School Board

Port Allen, Louisiana

FUNCTIONS/PROGRAMS

Governmental activities:

Instruction:

Regular programs

Special programs

Vocational programs

All other programs

Support services:

Student services

Instructional staff support

General administration

School administration

Business services

Plant services

Student transportation services

Central services

Food services

Interest on long term debt

Total Governmental Activities

CHARGES FOR

PROGRAM

REVENUES

OPERATING

GRANTS AND

EXPENSES SERVICES CONTRIBUTIONS

$ 9,049,589

3,034,253

659,904

3,810,035 $ 95,089

1,015,721

1,317,874

2,116,423

1,763,923

202,535

2,458,418

1,598,082

147,302

2,075,923 269,562403,059

29,653,040 364,650

Taxes:

Property taxes, levied for general purposes

Property taxes, levied for debt services

Sales and use taxes, levied for general purposes

State revenue sharing

$ 225,893

334,963

202,541

4,340,320

230,761

150,963

94,192

1,252,086-

6,831,719

NET (EXPENSE) REVENUE

AND CHANGES IN

NET ASSETS

GOVERNMENTAL ACTIVITIES

$ (8,823,696)

(2,699,290)

(457,364)

625,374

(784,960)

(1,166,911)

(2,116,423)

(1,763,923)

(202,535)

(2,458,418)

(1,503,890)

(147,302)

(554,275)

(403,059)

(22,456,670)

4,341,765

1,825,171

8,705,028

105,802

Grants and contributions not restricted to specific purposes:

Minimum Foundation Program

Interest and investment earningsMiscellaneous

Total general revenues and special items

Increase in net assets

Net assets - beginning of year

Net assets - end of year

10,367,933

424,099548,381

26.318.180

3,861,510

11,530,862

15,392,372


FUND FINANCIAL STATEMENTS


GOVERNMENTAL FUNDSBalance SheetJune 30, 2006

ASSETS

Cash and cash equivalents

Investments

Receivables

Interftind receivables

Inventory

TOTAL ASSETS

LIABILITIES AND FUND BALANCES

Liabilities:

Accounts, salaries and other payables

Interfund payables

Total Liabilities

Fund Balances:

Reserved for:

Debt service

Unreserved - Undesignated

Total Fund Balances

TOTAL LIABILITIES AND FUNDBALANCES

GENERAL

$ 3,017,238

74,627

514,662

1,588,723

5,195,250

898,899

898.899

CAPITAL

PROJECTS

$ 540,113

5,002,500

2,500

5,545,113

4,296,351 $ 5,545,113

4.296.351 5.545.113

5,195,250 5,545,113

DEBT

SERVICE

$ 751,234

751.234

$ 751,233

751.233

751,233

OTHER

EF1D GOVERN-

SALES TAX MENTAL

$ 465,210 $ 361,458

392,170 2,893,080

27.182

857,381 3,281,720

$ 36,031 $ 1,614,132

215.694 1,373,029

251.724 2.987.161

605,657 294,560

605.657 294.560

857,381 3,281,721

TOTALS

$ 5,135,253

5.077,127

3,802,412

1,588,723

27.182

15,630.697

$ 2,549,061

1,588,723

4.137.784

751,233

10,741,680

11.492.913

15,630.697


10


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

June 30,2006

Total Fund Balances at June 30,2006 - Governmental Funds $ 11,492,911

Cost of capital assets at June 30, 2006 $ 30,754,761Less: Accumulated depreciation as of June 30,2006:

Buildings and Improvements (15,599,231)Furniture and equipment (916.280) 14,239,250

Elimination of interfund assets and liabilities:Due from other funds 1,588,723Due to other funds (1.588,723)

Long-term liabilities at June 30,2005:Compensated absences payable (640,580)Bonds payable (9,590,000)Accrued interest payable (109.211) (10.339.791)

Net Assets at June 30, 2005 15,392,370


11


GOVERNMENTAL FUNDSStatement of Revenues, Expenditures and Changes in Fund Balances

For the Year Ended June 30,2006

REVENUESLocal Sources:

Taxes:Ad valoremSales and use

Interest earningsCharges for servicesOther

Total Local Sources

State Sources:Minimum Foundation ProgramOther

Total Stale Sources

Federal Sources

TOTAL REVENUES

EXPENDITURES

Current:Instruction:

Regular programsSpecial programsVocational programsAll other programs

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

Debt Service:Principal retirementInterest and bank charges

TOTAL EXPENDITURES

EXCESS (DEFICIENCY) OF REVENUESOVER EXPENDITURES

OTHER FINANCING SOURCES (USES)Interfund transfers inInterfund transfers out

TOTAL OTHER FINANCINGSOURCES (USES)

NET CHANGES IN FUND BALANCES

FUND BALANCES - BEGINNING

FUND BALANCES - ENDING

GENERAL

$ 4,341,7654,394,155

216,06818,589

297,786

9,268,362

9,869,001484,348

10,353,349

19,621,711

8,169,9572,461,310

419,625906,349

747,5861,109,108

985.7061,732,143

185,1782,366,3781,542,731

162,388912

20,789,373

(1,167,662)

3,760,128

3,760,128

2,592,466

1.703.885

4,296,351

CAPITAL DEBT EFIDPROJECTS SERVICE SALES TAX

$ 1,825,171$ 4,310,874

$ 175,645 32,387

120,290295.935 1,857,558 4,310.874

.

295,935 1,857,558 4,310,874

765,939262,009

44,739131,709

37,37457,803

68,138 83,88731,78017,357

6,494 70,83239,702

79,438

1,330,000495,365

6,494 1,893,503 1,622,569

289,441 (35,945) 2,688.304

(2,326,272)

(2,326,272)

289,441 (35,945) 362,032

5.255.672 787.178 243.625

5,545,113 751,233 605,657

OTHERGOVERN-MENTAL

$ 346,062130,305

476,367

498,932561,962

1,060,894

5,891,210

7,428,471

102.196310,934195,541

2,845,330

230,761150,963

4,823

2,002,788

5,843,336

1,585,135

(1,433,856)

(1,433,856)

151,280

143.277

294,557

TOTALS

$ 6,166,9368,705,028

424,099364,650548,381

16,209,095

10,367,9331,046,311

11.414,244

5,891,210

33,514,549

9,038,0923,034,253

659,9043,883,389

1,015,7211,317,8741,137,7321,763,923

202,5352,448,5281.582,433

162,3882,083,139

1,330,000495,365

30,155,275

3,359,275

3,760,128(3.760,128)

(0)

3,359,274

8.133.637

11,492,911


12


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

the Statement of ActivitiesFor the Year Ended June 30, 2006

Total Net Changes in Fund Balances for year ended June 30, 2006 $ 3,359,274

Add: Capital outlay which is considered expenditures on Governmental Funds

Statement of Revenues, Expenditures and Changes in Fund Balances 209,487

Less Depreciation expense for year ended June 30, 2006 (1,112,376)

Add: Bond principal retirement considered as an expenditure 1,330,000

Add: Excess of compensated absences earned over compensated absences used (17,182)

Add: Difference between interest on long-term debt on modified accrual basis

versus interest on long-term debt on an accrual basis 92,306

Total changes in Net Assets, for year ended June 30, 2006 3,861,509


13


FIDUCIARY FUND

Statement ofFiduciary Net Assets

June 30, 2006

SCHOOL ACTIVITY FUNDS

ASSETSCash and cash equivalentsInvestments

376,18711.000

TOTAL ASSETS

LIABILITIESDeposits due others

TOTAL LIABILITIES

387.187

387.187

387,187


14


NOTES TO FINANCIAL STATEMENTSJUNE 30,2006

INTRODUCTION

The West Baton Rouge Parish School Board (School Board) is a corporate body created underLouisiana Revised Statute (LSA-R.S.) 17:51 to provide public education for the children withinWest Baton Rouge Parish. The School Board is authorized by LSA-R.S. 17:81 to establishpolicies and regulations for its own government consistent with the laws of the State of Louisianaand the regulations of the Louisiana Board of Elementary and Secondary Education. The WestBaton Rouge Parish School Board is comprised often (10) members who are elected from eightdistricts for terms of four years. The Board is charged with the management and operation of theschool system.

The School Board operates ten schools within the parish. Student enrollment as of October 2005was approximately 3,726. In conjunction with regular educational programs, some of theseschools offer special education and/or adult education programs. In addition, the School Boardprovides transportation and school food services for the students.

NOTE#1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The School Board complies with generally accepted accounting principles (GAAP). The GAAPincludes all relevant Governmental Accounting Standards Board (GASB) pronouncements. Inthe government-wide financial statements, Financial Accounting Standards Board (FASB)pronouncements and Accounting Principles Board (APB) opinions issued on or before November30, 1989, have been applied unless those pronouncements conflict with or contradict GASBpronouncements, in which case, GASB prevails.

This financial report has been prepared in conformity with GASB Statement No. 34, BasicFinancial Statements - and Management's Discussion and Analysis -for State and LocalGovernments, issued in June 1999. The following is a summary of the School Board'ssignificant policies:

A. Financial Reporting Entity

GASB Statement No. 14, The Reporting Entity, and GASB Statement No. 39, DeterminingWhether Certain Organizations Are Component Units, establish criteria for determining thegovernmental reporting entity. Under provisions of these Statements the School Board isconsidered a primary government, since it is a special purpose government that has aseparately elected governing body, is legally separate,

15


NOTES TO FINANCIAL STATEMENTSJUNE 30. 2006

(Continued)

A. Financial Reporting Entity (continued)

and is fiscally independent means that the School Board may, without the approval or consentof another governmental entity, determine or modify its own budget, levy its own taxes or setrates or charges, and issue bonded debt. The School Board also has no component unitsdefined by GASB No. 14 and 39 as other legally separate organizations for which the electedSchool Board members are financially accountable. There are no other primary governmentswith which the School Board has a significant relationship.

B, Basis of Presentation

Government-wide Financial Statements.

The Statement of Net Assets and Statement of Activities display information about thereporting government as a whole. They include all funds of the School Board except forfiduciary funds. Governmental activities generally are financed through taxes,intergovernmental revenues, and other non-exchange revenues.

The School Board's basic financial statements consist of the government-wide statements onall of the non-fiduciary funds activities and fund financial statements (individual major fundand combined non-major funds). The statements are prepared in accordance with accountingprinciples generally accepted in the United States of America as applied to governmentalunits. Private sector standards of accounting and financial reporting issued prior toDecember 1, 1989, generally are followed in both the government-wide financial statementsto the extent that those standards do not conflict or contradict guidance of the GASB, inwhich case, GASB prevails.

Program Revenues.

Program revenues included in the Statement of Activities derive directly from partiesoutside the School Board's taxpayers. As a whole, program revenues reduce the costof the function to be financed from the School Board's general revenues.

Allocation of Indirect Expense.

The School Board Reports all expenses by function in the Statement of Activities.Direct expenses are those are clearly identifiable with a function. Indirect expenses ofother functions are not allocated to those functions but are reported separately in theStatement of Activities. Depreciation expense which can be specifically identified byfunction is included in the direct expenses of each Function. Depreciation on buildingsis assigned to "General Administration" function due to the fact that school buildingsserve many purposes. Interest in general long-term debt is considered an indirectexpense and is reported separately.

16


NOTES TO FINANCIAL STATEMENTSJUNE 30, 2006

(Continued)

Fund Financial Statements.

Fund Financial Statements of the reporting entity are organized into funds, each of which isconsidered to be separate accounting entities. Each fund is accounted for by providing aseparate set of self-balancing accounts that constitute its assets, liabilities, find equity,revenues, and expenditures. Funds are organized into two major categories: governmentaland fiduciary. An emphasis is placed on major funds within the governmental category. Afund is considered major if it is the primary operating fund of the School Board or meets thefollowing criteria:

a. Total assets, liabilities, revenues, or expenditures of that individual governmental fundare at least 10 percent of the corresponding total for all governmental funds.

The funds of the School Board are described below:

Governmental Funds

Governmental funds are used to account for all or most of the School Board's generalactivities, including the collection and disbursement of specific and legally restricted monies,the acquisition or construction of general fund assets and the servicing of long-term" debt.Governmental funds include:

1. The general fund is the primary operating fund of the School Board and alwaysclassified as a major fund. It is used to account for all activities except those legally or

administratively required to be accounted for in another fund.

2. The special revenue funds account for the proceeds of specific revenue sources that arelegally restricted to expenditures for specified purposes.

3. The debt service fund accounts for the accumulation of financial resources for thepayment of interest and principle on the general long-term debt.

4. The capital projects fund is used to account for resources restricted for the acquisition,construction or improvement of capital facilities.

17



(Continued)

Fiduciary Funds (Not included in governmental-wide statements)

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

1. The agency fund accounts for assets held by the School Board as an agent for theindividual schools and school organizations. The agency fund is custodial in nature

(assets equal liabilities) and do not involve the measurement of results of operations.

C. Measurement Focus and Basis of Accountability

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

Measurement Focus

On the government-wide Statement of Net Assets and the Statement of Activities,governmental-like activities are presented using the economic resources measurement focus.

In the fund financial statements, the "current financial resources" measurement focus is usedas appropriate:

a. All governmental funds utilize a "current financial resources" measurement focus.Only current financial assets and liabilities are generally included on their balancesheets. Their operating statements present sources and uses of available spendablefinancial resources during a giving period. These funds use fund balance as theirmeasure of available spendable financial resources at the end of the period.

b. Agency funds are not involved in the measurement of results of operations; therefore,measurement focus is not applicable to them.

Basis of Accounting

In the governmental-wide Statement of Net Assets and Statement of Activities,governmental-like activities are presented using the accrual basis of accounting. Under theaccrual basis of accounting, revenues are recognized when earned and expenses are rewardedwhen the liability is incurred or economic asset used.

Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange andexchange-like transactions are recognized when the exchange takes place.

18



(Continued)

In the fund financial statements, governmental funds and agency funds are presented on themodified accrual basis of accounting. Under the modified accrual basis of accounting,revenues are recognized when "measurable and available." Measurable means knowing orbeing able to reasonably estimate the amount. Expenditures (including capital outlay) arerecording when the related fund liability is incurred, except for general delegation bondprincipal and interest which are reported when due.

D. Assets, Liabilities, and Equity

Cash and Cash Equivalents

For the purpose of the Statement of Net Assets, cash and cash equivalents are considered tobe demand deposits, interest-bearing demand deposits and short-term investments (usuallytime certificates of deposits). All of these cited instruments are considered cash equivalents,as long as their original maturities are of three months or less from the date of acquisition.

Under state law, the School Board may deposit funds in demand deposits, interest-bearingdemand deposits, or time deposits with a bank organized under Louisiana law and nationalbanks having principal offices in Louisiana.

Investments

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

Interfund Receivables and Pavables

During the course of operations, numerous transactions occur between individual funds thatmay result in amounts owed between funds. Those related to goods and services typetransactions are classified as "due to and from other funds." Short-term interfund loans arereported as "interfund receivables and payables." Interfund receivables and payables betweenfunds within governmental activities are eliminated in the Statement of Net Assets.

Inventory

Inventories of the School Lunch Special Revenue Fund consist of food purchased by theSchool Board and commodities granted by the United States Department of Agriculturethrough the Louisiana Department of Agriculture and Forestry.

All purchased inventory items are valued at the lower of cost (first-in, first-out) on market,and commodities are assigned values based on information provided by the United StatesDepartment of Agriculture.

19



(Continued)

The commodities are recorded as revenue when received (issued); however, all inventoryitems are recorded as expenditures when consumed.

Prepaid Items

Prepaid items represent costs paid in advance which are applicable to future accountingperiods. An evaluation of such items indicates that any amounts which might be included asprepaid items are generally immaterial and therefore not recorded on neither the government-wide nor fund financial statements.

Receivables

In the government-wide statements, receivables consist of all revenues earned at year-end andnot yet received. Major receivables include sales and use taxes and grants.

In the fund financial statements, material receivables include revenue accruals such as salestax, grants and other intergovernmental revenues since they are usually both measurable andavailable.

Interest and investment earnings are recorded when earned.

Capital Assets

Capital assets, which include land, buildings and improvements, and furniture andequipment, are reported in the government-wide financial statements. Capital assets are notincluded within the depreciable assets (those subject to depreciation) of the School Boardunless they cost on an individual basis $ 5,000 or more and have an estimated useful life ofmore than one year. Items costing less than that are "expensed" at the time of purchase ratherthan depreciated. Depreciable assets do not have and assigned salvage value since anyamount would be generally immaterial.

Capital assets purchased or constructed are recorded at historical cost, or, estimated historicalcost if actual historical cost is not available. Donated capital assets are recorded at estimatedfair market value at the date of donation.

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

Capital assets are depreciated using the straight-line method over useful lives of 40 years forbuildings to 5 to 20 years for furniture and equipment.

20



(Continued)

The School Board does not possess any material amounts of infrastructure assets, such assidewalks and parking lots. Amounts prior to June 30, 2002, for such items were consideredto be part of the cost of the buildings or other immovable property such as stadiums. In thefuture, if such items are built or constructed, and are material in relation to the class of assets,they will be capitalized and depreciated.

Compensated Absences

All twelve-month employees earn from 10 to 20 days of annual (vacation) leave each year,depending on their length of service with the School Board. Annual leave is credited at theend of the fiscal year and must be taken in the following fiscal year.

All School Board employees earn from 10 to 13 days of sick leave each year depending onthe number of months employed. Sick leave can be accumulated without limitation. Uponretirement or death, unused sick leave of up to 25 days is paid to employees (or their heirs) atthe employees daily rate of pay at the time of retirement (or death). Under the TeachersRetirement System of Louisiana (TRSL), the total unused sick leave (including any amountwhich may be compensated or mentioned above), is used in retirement benefit calculations asearned service for leave earned prior to July 1, 1998. For Sick leave earned after June 30,1998 under the TRSL and for sick leave earned under the Louisiana School EmployeesRetirement System (LSERS), all unpaid sick leave, which excludes the above statedcompensated days, is used in retirement benefit computations as earned service.

Sick leave may be accumulated without limitation and is earned on a June 30 fiscal yearbasis. Certified employees may carry their accumulated sick leave from one public schooldistrict to another public school district in Louisiana.

Sabbatical leave may be granted on or for medical leave or for professional and culturalimprovement. Any employee whose position requires a teaching certificate is entitled,subject to approval of the School Board, to one (1) semester of sabbatical leave after threeyears of continuous service with the School Board, or two (2) semesters of sabbatical leaveafter six (6) or more years of continuous service. Sabbatical leave benefits are recorded as anexpenditure in the period paid and are not recorded as a liability on the government-widefinancial statements.

The cost of current leave privileges, as recognized as a current year expenditure in thegovernmental funds when leave is actually taken.

Long-Term Obligations

All long-term obligations are reported as liabilities in the government-wide statements. Thelong-term obligations consist primarily of bonds payables and accrued compensatedabsences.

21



(Continued)

Long-term obligations are not reported as liabilities in the fund financial statements. Debtproceeds are reported as other financing sources and payment of principle and interestreported as expenditures.

Equity Classifications

Government-wide Statements

a. Invested in capital assets, net of related debt - Consists of capital assetsincluding restricted capital assets, net of accumulated depreciation andreduced by the outstanding balances of any bonds that are attributable to theacquisition, construction or improvement of those assets.

b. Restricted net assets - Consist of net assets with constraints placed on useeither by (1) external groups, or (2) law through constitutional provisions orenabling legislation.

Fund Statements

Governmental fund equity is classified as fund balance. Fund balance is furtherclassified as reserved and unreserved with unreserved further split between designatedand undesignated.

Use of Estimates

The preparation of financial statement in conformity with general accepted accountingprinciples in the United State of America requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosures ofcontingent assets and liabilities at the date of the financial statements and the reportedamounts of revenues and expenses/expenditures during the reported period. Actual resultsmay differ from the estimates.

E. Revenues, Expenditures, and Expenses

Sales Tax

The School Board levies two separate sales tax on taxable sales within the Parish. The salestax is collected by West Baton Rouge Parish Department of Revenue and remitted to the Cityin the month following receipt by the Department of Revenue. The Department of Revenuereceives the sales tax approximately one month after collection by vendors.

22



(Continued)

In October, 1965, the voters of the parish approved a permanent one percent sales and usetax. The net proceeds (after deduction for the cost of collection) are dedicated for salaries ofteachers and for the general operations of the schools. Proceeds from this tax are included asrevenue in the General Fund.

In May, 1999, the voters of the parish approved an additional one percent sales and use tax.The net proceeds (after deduction for cost of collection) are dedicated as follows: 1) 45% tobe used for teachers' and support staff salaries; 2) 55% to eliminate operating deficits of theGeneral Fund by providing monies to pay the cost of operation and maintenance of the schoolsystem. Proceeds from this tax is included as revenues in the Educational FacilitiesImprovement District Special Revenue Fund and the General Fund.

Ad valorem taxes

Ad valorem (property) taxes were levied by the School Board on August 18, 2005; based onassessed valuation of property as of January 1, 2005. These taxes become due and payableon November 15 of each year and become delinquent after December 31 of the year levied.

The following are the School Board authorized and levied ad valorem taxes for 2005:

Fund/Purpose Authorized Mills Levied Mills Expiration Date

General Fund

Constitutional 4.39 4.39 Statutory

Maintenance 15.00 15.00 2013

Debt Service variable 8.50 2012

Expenses/Expenditures

In the government-wide financial statements, expenses are reclassified by function.

In the fund financial statements, governmental funds report expenditures of financialresources.

Interfund Transfer

Permanent reallocation of resources between funds of the School Board are classified asinterfund transfers. For the purposes of the Statement of Activities, all interfund transfersbetween individual governmental funds have been eliminated.

23



(Continued)

NOTE #2: STEWARDSHIP, COMPLIANCE. AND ACCOUNTABILITY

A. Budgetary Information

Annual budgets are adopted on the modified accrual basis of accounting for all governmentalfunds. All annual appropriations lapse at year-end.

For the current fiscal year, the proposed budgets for the General Fund, Special Revenue Funds,Capital Projects Fund and Debt Service Fund were presented to the School Board on August 18,2005. The proposed budgets were advertised in the official journal as being available for publicinspection in accordance with state law. A public hearing was held oh September 1, 2005. Theproposed budgets were adopted by the School Board on September 21, 2005.

Encumbrances are recognized within the accounting records for budgetary purposes. Formalbudget integration (within the accounting records) is employed as a management control device.The superintendent of schools is authorized to transfer amounts between line items within fundbudgets. However, when actual revenues within a fund fail to meet estimated annual budgetedrevenues, and/or actual expenditures within a fund exceed estimated budgeted expenditures byfive per cent or more, a budget amendment is adopted by the School Board in an open meeting.

Budgeted amounts included in the accompanying financial statements include the original budgetand all subsequent amendments.

NOTE #3: DETAILED NOTES ON ALL FUNDS

Cash and Cash Equivalents

At June 30, 2006, the School Board had cash and cash equivalent (book balances) totaling$5,511,441 in interest and non-interest bearing demand deposits and certificates of deposit.

These deposits are stated at cost, which approximates market. Under state law, these deposits mustbe secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank.The market value of the pledged securities plus the federal deposit insurance must at all times equalthe amount on deposit with the fiscal agent. These securities are held in the name of the pledgingfiscal agent bank in a holding or custodial bank that is mutually acceptable to both parties.

At June 30, 2006, the bank balance of the deposits is $6,582,390.

Custodial risk is the risk that in the event of a bank failure, the Board's deposits may not be returnedto it. The Board does not have a policy for custodial credit risk. At June 30, 2005, $6,474,614 of thebank balance were exposed to custodial risk.

24



(Continued)

Investments

At June 30, 2006, the School Board holds time certificates of deposit in the amount of $ 4,011,000.These time certificate of deposits are in the name of the School Board. At June 30, 2006$3,911,000 of the investments were exposed to custodial risk.

The School Board holds a United States government bond in the amount of $1,002,500 which issecured by the United States government.

The School Board also holds stock in a private company which was donated by an individual. Thisstock is reported at its quoted market price of $74,627at June 30, 2006.

Receivables

The receivables of $3,802,412 at June 30, 2006 consist of the following:

Class

Taxes

Sales

General

Fund EFID

Capital

Projects Other Total

$ 400,056 $ 392,170 $ 792,226

Intergovernmental

Federal

State

Other

Totals

Capital Assets

83,573

31,033 $ 2,500

$ 2,501,250

391,830

2,501,250

475,403

33,533

$ 514,662 $ 392,170 $ 2,500 $ 2,893,080 $ 3,802,412

Capital assets and depreciation activity as of and for the year ended June 30, 2006, is as follows:

Cost at June 30,2005

Additions

Deletions

Cost at June 3 0,2006

$Land

985,651

985,651

Building &

Improvements

$28,501,153

173,489

28,674,642

Equipment

& Furniture

$ 1,163,470

35,998

(105,000)

1,094,468

Total

$ 30,650,274

209,487

(105,000)

30,754,761

25


NOTES TO FINANCIAL STATEMENTSJUNE 30.2006

(Continued)

Accumulated depreciationat June 30,2005

AdditionsDeletionsAccumulated depreciation

at June 30, 2006

Capital assets, net of depreciationat June 30, 2006 $985,651

$14,521,294 $ 986,841 $15,508,1351,077,937 34,439 1,112,376

(105,000) (105,000)

15,599,231 916,280 16,515,511

$ 1,3075,411 $178,188 $14,239,250

Depreciation expense of $ 1,112,376 for the year ended June 30, 2006 wascharged to the following governmental functions:

Instruction:All other programs $ 135

Support services:General administration 1,078,691Plant services 9,890Student transportation services 15,649Food services 8,011

Total 1,112,376

Accounts, salaries and other current pavables

The payables of $2,549,061 at June 30, 2006, are as follows:

Salaries andrelated benefitsAccounts

Totals

General

$ 869,12129,778

898.899

EFID

$36,031Q

36.031

Other

$1,554,57459,558

1.614.132

Total

$ 2,459,72589336

2.549.061

26



(Continued)

Long-term obligations

The following is a summary of the long-term obligation transactions for the year ended June30,2006:

Bonded Debt Compensated Absences Total

Balance, July 1, 2005 $ 10,920,000 $ 623,398 $ 11,543,398Additions 0 17,182 17,182Deductions (1,330,000) (1.330.000)Balance, June 30,2006 9.590.QQQ 640.580 10.230.580

General Obligation bonds have been issued to provide funds for the acquisition andconstruction of major capital facilities and to refund general obligation bonds andpledge the full forth and credit of the School Board. General obligation bondscurrently outstanding are as follows:

$ 14,560,000 General Obligation School ImprovementRefunding Bonds, Since 1999, issued February 1, 1999

for the purpose of refunding General Obligation SchoolImprovement Bonds, Series 1992 due in annualinstallments of $ 1,330,000 to $ 1,825,000 throughMarch 1, 2012 with interest at 4% to 5% secured byan annual ad valorem tax levy. $ 9,590.000

At June 30,2006, the School Board has accumulated $751,233 in the debt servicefund for future debt retirement. The annual requirements to amortize all bonds atJune 30,2006, including interest of $ 1,666,336 are as follows:

Year EndingJune 30, Amount2007 $ 1,841,8452008 1,850,6452009 1,866,8442010 1,883,5002011 1,897,250Thereafter K916.252

Total 11.256.336

In accordance with LSA - R.S. 39:562, the School Board is legally restricted fromincurring long-term bonded debt in excess of 35% of the assessed value of taxableproperty with the Parish. At June 30, 2006, the statutory limit is $66,850,000 andoutstanding bonded debt totals $ 9,590,000.

27



(Continued)

Compensated absences payable consist of the portion of accumulated sick leave of thegovernmental funds that is not expected to require current resources. The liability for compensatedabsences is computed only at the end of each fiscal year; therefore, the $17,182 reflected above asdeductions to compensated absences is the net leave benefits earned and paid during the year.

NOTE #4: OTHER INFORMATION

Retirement Systems

Substantially all employees of the School Board are members of one of two statewide retirementsystems. In general, professional employees (such as teachers and principals), and lunchroomworkers are members of the Teachers Retirement System of Louisiana (TRS); other employees,such as custodial personnel and bus drivers, are members of the Louisiana School EmployeesRetirement System (LSERS). The systems are cost-sharing, multiple-employer defined benefitpension plans administered by separate boards of trustees. Pertinent information relative to eachplan follows:

Teachers Retirement System of Louisiana (TRS)

The TRS consists of three (3) membership plans: Regular A, Plan A and Plan B. The TRSprovides retirement benefits as well as disability and survivor benefits. Ten years of service creditis required to become vested for disability and survivor benefits.

Benefits are established and amended by state statute. The TRS issues a publicly availablefinancial report that includes financial statements and required supplementary for the TRS. Thatreport may be obtained by writing to the Teachers' Retirement System of Louisiana, Post OfficeBox 94123, Baton Rouge, Louisiana, 70804-9123, or by calling (225) 925-6446.

Plan members are required to contribute 8.0%, 9.10% and 15.9% of their annual-covered salary forthe Regular Plan, Plan A and Plan B, respectively. The school board is required to contribute at anactuarially determined rate. The current rate is 15.5% of an annual-covered payroll for all threemembership plans. Member contributions and employer contributions for the TRS are establishedby state law and rates are established by the Public Retirement Systems Actuarial Committee. Theschool board's employer contribution for the TRS, as provided by state law, is funded by the Stateof Louisiana through annual appropriations, by deductions from local ad valorem taxes and byremittances from the school board.

The school board's contributions to the TRS for the years ending June 30, 2006, 2005 and 2004were $2,161,537, $ 1,871,531, and $ 1,601,224 respectively, equal to the required contributions foreach year.

28



(Continued)

Louisiana School Employees' Retirement System (LSERS)

The LSERS provides retirement benefits as well as disability and survivor benefits. Then years of servicecredit is required to become vested for retirement benefits and five years to become vested for disabilityand survivor benefits. Benefits are established and amended by state statute. The LSERS issues a publiclyavailable financial report that includes financial statements and required supplementary information for theLSERS. That report may be obtained by writing to the Louisiana School Employees' Retirement System,Post Office Box 44516, Baton Rouge, LA 70804, or by calling (225) 925-6484.

Plan members are required to contribute 7.50% of their annual-covered salary and the school board isrequired to contribute at an actuarially determined rate. The School Board is required to contribute at anactuarially determined rate. The current rate is 18.4%.

Member contributions and employer contributions for the LSERS are established by state law and rates areestablished by the Public Retirement Systems' Actuarial Committee. The school board's employercontribution for the LSERS is funded by the State of Louisiana through annual appropriations.

The school board's contributions to the LSERS for the years ending June 30, 2006, 2005 and 2004 were$ 136,795, $145,034, and $86,610.

Post-Employment Benefits

In addition to providing pension benefits, the school board provides certain health care and life insurancebenefits for its retired employees. All of the school board's employees may become eligible for thosebenefits if they reach normal retirement age while working for the school board.

The school board's contributions are financed on a pay-as-you-go basis. The cost of retiree health careand life insurance benefits is recognized as an expenditure as premiums are paid. The cost of providingthese benefits for the retirees for the year ended June 30, 2006 totaled $ 1,258,625. The number of retireescurrently receiving benefits is 227.

Litigation and Claims

At June 30, 2006, the School Board is defendant in several pending lawsuits, which are being handled byoutside counsel. The ultimate resolution of these lawsuits cannot be presently determined and noprovision for any liability that may result from such claims have been made in the financial statements.

29


NOTES TO FINANCIAL STATEMENTSJUNE 30,2006

(Continued)

Leases

The School Board is the lessor of land under cancelable operating leases expiring in 2008.

School Board Members' Compensation

The schedule of compensation paid to School Board members is presented in compliance withHouse Concurrent Resolution No. 54 of the 1979 Session of the Louisiana Legislature. Thecompensation of School Board members is included in the general administrative expenditures ofthe General Fund. In accordance with Louisiana Revised Statutes 17:56, the School Boardmembers have elected the monthly payment method, each member of the School Board receives$800 per month.

The total compensation for the year ended June 30, 2006 was $ 96,000.

Expenditures of Federal Awards and Audit Findings Resolution

In accordance with Office of Management and Budget Circular A- 133, schedules of expendituresof federal awards, follow-up and corrective action taken on prior audit findings, if any, andcorrective action plans for current year findings, if any, are presented.

30

REQUIRED SUPPLEMENTARY INFORMATION - PART II


MAJOR FUND DESCRIPTIONSYEAR ENDED JUNE 30, 2006

GENERAL FUND

The General Fund is used to account for resources traditionally associated with the School Boardwhich are not legally required or required by sound accounting practices to be accounted for inanother fund.

CAPITAL PROJECTS FUND

The Contingency Fund accounts for financial resources to be used for the renovation of majorcapital facilities.

DEBT SERVICE FUND

The Debt Service Fund accounts for the accumulation and payment of General Obligation SchoolImprovement Refunding Bonds, Series 1999.

EDUCATIONAL FACILITIES IMPROVEMENT DISTRICT FUND

The Educational Facilities Improvement District (EFID) Special Revenue Fund accounts for 55% ofa one (1) percent sales and use tax levied within the Parish dedicated to salaries.

31

31


GENERAL FUNDBudgetary Comparison ScheduleFor the Year Ended June 30, 2006


Taxes:Ad valoremSales and use

Interest earningsCharges for servicesOther

Total Local Sources


Total State Sources

TOTAL REVENUES

EXPENDITURESCurrent:

Instruction:Regular programsSpecial programsVocational programsAll other programs

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

Capital Outlay

TOTAL EXPENDITURES


OTHER FINANCING SOURCES (USES)Interfund transfers-inInterfund transfers-out


NET CHANGES IN FUND BALANCE

BUDGETORIGINAL

4,309,4603,400,000

50,00017,500183,250

7,960,210

9,676,008451.330

10,127,338

18,087,548

7,775,1502,308,613434,479637,385

833,7061,091,964985,043

1,676,068188,301

2,058,7211,531,859192,214

19,713,503

(1,625,955)

2,077,030(450,000)

1,627.030

1,075

BUDGETFINAL

4.309,4603,400,000

50,00017,500

183,2507,960,210

10.337,03345K330

10,788,363

18,748,573

7,775,1502,308,613

434,479887,385

833,7061,091,964

985,0431,676,068

188,3012,058,7211,531.859

192.214

19,963.503

(1,214,930)

2,077,030(450,000)

1,627,030

412,100

ACTUAL(Budgetary

Basis>

4,341,7654,394,155

216,06818,589

297,7869,268,362

9,869,001484,348

10,353,349

19,621,711

8,169,9572,461,310

419,625906,349

747,5861,109,108

985,7061,732,143

185,1782,366,3781,542,731

162,388912

20,789,373

(1,167,662)

3,760,128

3,760,128

2,592,466

32


CAPITAL PROJECTS FUNDBudgetary Comparison ScheduleFor the Year Ended June 30, 2006


Interest EarningsOther

Federal Sources

BUDGETORIGINAL

$ 175,30042,000

BUDGETFINAL

175,30042,000

ACTUAL(Budgetary

Basis')

$ 175,645120,290

TOTAL REVENUES


Support Services:Genera] Administration

Operation and Maintenance

Plant Services

TOTAL EXPENDITURES

217,300

199,530

199,530

217,300

199,530

199,530

295,935

6,494

6,494

NET CHANGES IN FUND BALANCE 17,770 17,770 289,441

33


DEBT SERVICE FUNDBudgetary Comparison Schedule



Taxes:Ad valorem

Interest earnings

TOTAL REVENUES

BUDGETORIGINAL

1,768,00015,000

1,783,000

BUDGETFINAL

1,768,00015,000

1,783,000

ACTUAL(Budgetary

Basis)

1,825,17132,387

1,857,559


General administrationDebt service:

Principal retirementInterest and bank charges

TOTAL EXPENDITURES

60,500

1,330,000495,365

1,885,865

60,500

1,330,000495,365

1,885,865

68,138

1,330,000495,365

1,893,503

NET CHANGES IN FUND BALANCE (102,865) (102,865) (35,945)

34


EFID Sales TaxBudgetary Comparison Schedule

For the Year Ended June 30, 2006


Taxes:Sales and use

TOTAL REVENUES



Support Services:Student servicesInstructional staff supportGeneral administrationSchool administrationBusiness servicesPlant servicesStudent transportation servicesSchool food services

TOTAL EXPENDITURES


OTHER FINANCING SOURCES (USES)Interfund transfers-inInterfund transfers-out


NET CHANGES IN FUND BALANCE

BUDGETORIGINAL

3,300,000 $

3,300,000

1,800,000

(1,771,000)

(1,771,000)

BUDGETFINAL

4,310,000

4,310,000

2,686,000

(2,327,000)

(2,327,000)

ACTUAL(Budgetary

Basis)

$ 4,310,874

4,310,874

747,000189,00041,000125,000

30,00050,00080,00027,00013,00057,00080,00061,000

1,500,000

789,000260,00042,000129,000

35,00055,00083,00031,00017,00067,00040,00076,000

1,624,000

765,939262,00944,739131,709

37,37457,80383,88731,78017,35770,83239,70279,438

1,622,569

2,688,304

(2,326,272)

(2,326,272)

29,000 359,000 362,032

35

OTHER SUPPLEMENTARY INFORMATION


NON-MAJOR GOVERNMENT FUNDSYEAR ENDED JUNE 30, 2006

SPECIAL REVENUE FUNDS

Special revenue funds are used to account for specific revenues that are legally restricted toexpenditures for particular purposes.

IMPROVING AMERICA'S SCHOOL ACT (IASA) FUNDS

Title I of the IASA is a program for economically and educationally deprived school children which isfederally financed, state-administered, and locally operated by the School Board. The Title I servicesare provided through various projects that are designed to meet the special needs of educationallydeprived children. The activities supplement, rather than replace, state and locally mandated activities.

Title II of the IASA is a federally funded program to provide financial assistance to improve the skillsof teachers and instruction in mathematics, science, computer learning, foreign language, and toincrease the access of all students to this instruction.

Title IV of the IASA is a federally funded program that provides project grants to school systems toassist in developing programs of drug abuse education and prevention that are coordinated with relatedcommunity efforts and resources.

Title V of the IASA is a federally funded program whose funds are used to encourage comprehensivesystematic school reform, upgrade instructional and professional development to align with highstandards, strengthen accountability and promote the coordination of resources to improve education forall children.

Reading First State Grants (a related program to Title I) of IASA is a federally funded program toensure that all children in America read well by the third grade.

Class Size Reduction (a related program to Title VI) of IASA is a federally funded program to reduceclass sizes, particularly in the early grades, using highly qualified teachers to improve educationalachievement for regular and special needs children.

VOCATIONAL EDUCATION FUND

Vocational Education is a federally funded program restricted to expenditures for salaries, supplies andequipment to be used in vocational education programs. It consists of funds derived from the Carl D.Perkins Funds.

36


NON-MAJOR GOVERNMENT FUNDSYEAR ENDED JUNE 30. 2006

(Continued)

SPECIAL EDUCATION FUNDS

The IDEA (Individuals with Disabilities Education Act) Fund accounts for two federally financedprograms which provide free education in the least restricted environment to children withexceptionalities.

PRE GED TANF

Pre-GED/Skills Option Program is a federal program comprised of a counseling and guidancecomponent, a pre-GED academic component, a workplace readiness component and a skills instructioncomponent for students who are at risk.

EARLY CHILDHOOD

The Early Childhood program is a state program that enhances the developmental readiness of the fouryear old students in the program and provide an opportunity for greater success in kindergarten.

STARTING POINTS :

The Starting Points program is a federally funded program designed to acclimate at risk four year oldsto an early educational setting so that they may be better prepared for kindergarten.

K-3 READING AND MATH INITIATIVE

During state legislative sessions, funds were appropriated to strengthen the reading and mathematicsskills of public school children in grades K-3. funds may be used for additional materials, in-serviceteacher training and hiring additional teachers.

EDUCATION EXCELLENCE FUND

This fund was created form the tobacco settlement monies received by the State of Louisiana. Thefunds derived, therefore are constitutionally dedicated into three separate trust funds dedicated tohealthcare and education.

SCHOOL LUNCH FUND

School Lunch is a program that provides nourishing meals to students in all grades. This program issupplemented by both federal and state funds that are based on reimbursement and participation.

37


NON-MAJOR GOVERNMENT FUNDSYEAR ENDED JUNE 30, 2006

(Continued)

KATRINA FUNDS

Katrina funds consist of funds provided for local educational agencies to assist with the cost ofeducating students displaced by Hurricanes Katrina and Rita as well as funds provided to assist withdamages caused by Hurricane Katrina.

OTHER FUNDS

Other funds consist of certain smaller programs funded through state grants and federal grants approvedby the State Board of Elementary and Secondary Education and which are to be used for localinitiatives.

AGENCY FUNDS

The Agency Fund accounts for assets held as in a fiduciary capacity by the School Board.

SCHOOL ACTIVITY AGENCY FUND

The School Activity Agency Fund accounts for monies generated by the individual schools and schoolorganizations. While these accounts are under the supervision of the School Board, they belong to theindividual schools or their student bodies and are not available for use by the School Board.

38


NONMAJOR SPECIAL REVENUE FUNDSCombined Balance Sheet

June 30, 2006

ASSETSCash and cash equivalentsReceivablesInterfiind receivables

Inventory

361,4582,893,080

27,182

TOTAL ASSETS 3.281.720

LIABILITIES AND FUND BALANCESLiabilities:

Accounts, salaries and other payablesInterftmd payables

1,614,1321,373,029

TOTAL LIABILITIES

Fund BalancesUnreserved - Undesignated

TOTAL FUND BALANCES

2.987.161

294.560

294.560

TOTAL LIABILITIES AND FUND BALANCES 3,281,721

39


NONMAJOR SPECIAL REVENUE FUNDSCombined Statement of Revenues, Expenditures and

Changes in Fund BalancesFor the Year Ended June 30,2006


Charges for servicesOther

Total Local Sources

346,062130.305

476.367

State Sources:

Minimum Foundation ProgramOther

Total State Sources

Federal Sources

498,932561,963

1,060,895

5,891,210

TOTAL REVENUES 7.428.472

EXPENDITURES:

Current:Instruction:

Regular programsSpecial programsVocational programs

All other programsSupport Services:

Student servicesInstructional staff supportGeneral administrationSchool administrationBusiness servicesPlant servicesSchool food services

102,196310,934195,541

2,845,330

230,761150,963

4,8232,002,788

TOTAL EXPENDITURES 5.843.336

EXCESS (DEFICIENCY) OF REVENUES

OVER EXPENDITURES 1.585.136

OTHER FINANCING SOURCES (USES):Interfund transfers-out

TOTAL OTHER FINANCING SOURCES (USES)

(1,433,856)

(1,433,856)

EXCESS (DEFICIENCY) OF REVENUESOVER EXPENDITURES AND OTHER USES

FUND BALANCE - BEGINNING

151,280

143.278

FUND BALANCE - ENDING 294,558

40

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REVENUES:Local Sources:



Federal Sources

TOTAL REVENUES

EXPENDITURES:Current:


Support Services:Student servicesInstructional staff supportGeneral administrationSchool administrationBusiness servicesPlant servicesSchool food services

TOTAL EXPENDITURES






FUND BALANCE - ENDING

TITLE I

820,489

685,385

103,698

789,083

31,406

(31,406)

(31,406)

TITLE ICSRP

164,427

161,414

161,414

3,013

(3,013)

(3,013)

TITLE II

$ 820,489 $ 164,427 $ 293,916

293,916

287,645

287,645

6,271

(6,272)

(6,272)

45







Federal Sources

TOTAL REVENUES




TOTAL EXPENDITURES







TITLE IV

1,000

18,151

19,151

18,406

18,406

745

(233)

(233)

512

1,065

TITLE V

13,047

12,649

12,649

397

(398)

(398)

READINGFIRST

13,047 $ 338,473

338,473

327,090

327,090

11,382

(11,383)

(11,383)

1,577

46






VOCATIONAL SPECIAL Pre GEDEDUCATION EDUCATION TANF


Federal Sources

TOTAL REVENUES




TOTAL EXPENDITURES







$ 8,429

53,206 609,383 $ 13,100

53,206

53,206

53,206

617,812

310,934

230,76147,265

4,823

593,783

24,029

(24,029)

(24,029)

13,100

13,100

13,100

47


NONMAJOR SPECIAL REVENUE FUNDS

Combining Statement of Revenues, Expenditures and Changes in Fund BalancesFor the Year Ended June 30, 2006



EARLY STARTINGCHILDHOOD POINTS

STATE K-3READING

INITIATIVE


Federal Sources

99,802

$ 577,501

59,389

TOTAL REVENUES 99,802 577,501 59,389




99,802 528,219 59,389

TOTAL EXPENDITURES 99,802 528,219 59,389

EXCESS (DEFICIENCY) OF REVENUESOVER EXPENDITURES 49,282

OTHER FINANCING SOURCES (USES):Interfund transfers-out (6,512)

TOTAL OTHER FINANCING SOURCES (USES) (6,512)



42,770

FUND BALANCE - ENDING 42,770

48



For the Year Ended June 30, 2006



EDUCATIONEXCELLENCE

FUND

GBRTECH PREPFUND

SCHOOLLUNCH

$ 269,562


Federal Sources

TOTAL REVENUES




TOTAL EXPENDITURES







83,678

83,678

89,096

89,096

(5,418)

$ 149,298

149,298

142,334

142,334

6,964

(6,964)

(6,964)

498,932

1,252,086

2,020,580

2.002.788

2,002,788

17,791

(5,418)

23,023

17,791

8,416

17,605 26,207

49




KATRINAFUNDS




Federal Sources $ 1,576,164

OTHERFUNDS

76,500129,305

310,665

11,968

TOTAL

346,062130,305

498,932561,963

5,891,210

TOTAL REVENUES 1,576,164 528,439 7,428,472




TOTAL EXPENDITURES


232.518

232,518

1,343,646

432,813

432,813

95.626

102,196310,934195,541

2,845,330

230,761150,963

4,8232.002.788

5,843,336

1,585,136






(1,343,646)

(1,343,646)

(1,433,856)

(1,433,856)

(0) 95,626

110,775

151,281

143,278

206,401 294,559

50


AGENCY FUNDSchedule of Changes in Deposit Balances

of Individual SchoolsFor the Year Ended June 30, 2006

SCHOOL ACTIVITY AGENCY FUND

Brusly Elementary SchoolBrusly High SchoolBrusly Middle SchoolChamberlin Elementary SchoolCohn Elementary SchoolDevall Middle SchoolLukeville Upper Elementary SchoolPort Allen Elementary SchoolPort Allen High SchoolPort Allen Middle School

TOTAL

BALANCEJULY I,

BALANCEJUNE 30,

2005 ADDITIONS DEDUCTIONS

$ 15,709 $52,79337,24922,314

3,68744,89965,7617,125

85,8216,200

55,161 $410,772139,88750,77539,79668,34289,39837,768

217,28042,204

52,180 $380,285128,20150,86239,97068,809

110,01837,376

200,67037,383

2006

18,69083,28048,93522,227

3,51344,43245,141

7,517102,431

11,021

341,558 $ 1,151,383 $ 1,105,754 $ 387,187

51


SCHEDULE OF SCHOOL BOARD MEMBERS'JUNE 30, 2006

C. A, Altazan, Jr.

Cynthia M. Crochet

George A. Chustz

Cecile Gauthreaux

Ronald P. Lebianc

Jason Manola

Michael Maranto

Charles Morgan

Paul C. Pattan, Sr.

Atley D. Walker, Sr.

Total

COMPENSATION

$ 9,600

9,600

9,600

9,600

9,600

9,600

9,600

9,600

9,600

9,600

96.000

52


INDEPENDENT AUDITORS' REPORT ON COMPLIANCEAND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED

ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED INACCORDANCE WITH GOVERNMENT AUDITING STANDARDS


We have audited the financial statements of West Baton Rouge Parish Board, Port Allen, Louisianaas of and for the year ended June 30,2006, and have issued our report thereon dated March 27,2007. We conducted our audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States.

COMPLIANCE

As part of obtaining reasonable assurance about whether West Baton Rouge Parish School Board,Port Allen, Louisiana's financial statements are free of material misstatement, we performed tests onits compliance with certain provisions of laws, regulations, contracts and grants, noncompliancewith which could have a direct and material effect on the determination of financial statementamounts. However, providing an opinion on compliance with those provisions was not an objectiveof our audit and, accordingly, we do not express such an opinion. The results of our tests disclosedno instances of noncompliance that are to be reported under Government Auditing Standards.

INTERNAL CONTROL OVER FINANCIAL REPORTING

In planning and performing our audit, we considered West Baton Rouge Parish School Board, PortAllen, Louisiana's internal control over financial reporting in order to determine our auditingprocedures for the purpose of expressing our opinion on the financial statements and not to provideassurance on the internal control over financial reporting. Our consideration of the internal controlover financial reporting would not necessarily disclose all matters in the internal control overfinancial reporting that might be material weaknesses. A material weakness is a condition in whichthe design or operation of one or more of the internal control components does not reduce to arelatively low level the risk that misstatements in amounts that would be material in relation to thefinancial statements being audited may occur and not be detected within a timely period byemployees in the normal course of performing their assigned functions. We noted no mattersinvolving the internal control over financial reporting and its operation to be material weaknesses.


PHONE: (225) 292-1O4O2933 BRAKLEY DRIVE, SUITE B BATON ROUGE. LOUISIANA 70816 FAX: (225)292-1041564 FERDNAND STREET ST. FRANCISVILLE, _OUISIANA 7O775 PHONE: (225) 635-4204


This report is intended solely for the information and use of management, the State of LouisianaLegislative Auditor, and federal awarding agencies and pass-through entities and is not intended tobe and should not be used by any one other than these specified parties. By provisions of state law,this report is a public document and it has been distributed to appropriate public officials.

There were no comments related to noncompliance or to the internal control structure noted in theaudit for the year ended June 30, 2005.

c nBaton Rouge, Louisiana l/l**- yMarch 27, 2007 /

54


INDEPENDENT AUDITORS' REPORT ON COMPLIANCEWITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND

INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCEWITH OMB CIRCULAR A-133


Compliance

We have audited the compliance of West Baton Rouge Parish School Board, Port Allen, Louisiana withthe types of compliance requirements described in the U.S. Office of Management and Budget (OMB)Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for theyear ended June 30, 2006. West Baton Rouge Parish School Board, Port Allen, Louisiana's major federalprograms are identified in the summary of auditors' results section of the accompanying schedule offindings and questioned costs. Compliance with the requirements of laws, regulations, contracts andgrants applicable to each of its major federal programs is the responsibility of West Baton Rouge ParishSchool Board, Port Allen, Louisiana's management. Our responsibility is to express an opinion on WestBaton Rouge Parish School Board, Port Allen, Louisiana's compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in theUnited States of America; the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits ofStates, Local Governments and Non-Profit Organizations. Those standards and OMB Circular A-133require that we plan and perform the audit to obtain reasonable assurance about whether noncompliancewith the types of compliance requirements referred to above that could have a direct and material effect ona major federal program occurred. An audit includes examining, on a test basis, evidence about WestBaton Rouge Parish School Board, Port Allen, Louisiana's compliance with those requirements-andperforming such other procedures as we considered necessary in the circumstances. We believe that ouraudit provides a reasonable basis for our opinion. Our audit does not provide a legal determination onWest Baton Rouge Parish School Board, Port Allen, Louisiana's compliance with those requirements.

In our opinion, West Baton Rouge Parish School Board, Port Allen, Louisiana complied, in all materialrespects, with the requirements referred to above that are applicable to each of its major federal programsfor the year ended June 30, 2006.


2933 BRAKLEY DR.VE, SU.TE B BATON m^ LOUISIA|S|A 7ftftlfi

564 FERDNAND STREET ST. FRANCISVILLE, LOUISIANA 7O775 PHONE: (225) 63542O4


Internal Control Over Compliance

The management of West Baton Rouge Parish School Board, Port Allen, Louisiana is responsible forestablishing and maintaining effective internal control over compliance with requirements of laws,regulations, contracts and grants applicable to federal programs. In planning and performing ouraudit, we considered West Baton Rouge Parish School Board, Port Allen, Louisiana's internal controlover compliance with requirements that could have a direct and material effect on a major federalprogram in order to determine our auditing procedures for the purpose of expressing our opinion oncompliance and to test and report on internal control over compliance in accordance with OMBCircular A-133.

Our consideration of the internal control over compliance would not necessarily disclose all mattersin the internal control that might be material weaknesses. A material weakness is a condition inwhich the design or operation of one or more the internal control components does not reduce to arelatively low level the risk that noncompliance with applicable requirements of laws, regulations,contracts and grants that would be material in relation to a major federal program being audited mayoccur and not be detect within a timely period by employees in the normal course of performing theirassigned functions. We noted no matters involving the internal control over compliance and itsoperation that we consider to be material weaknesses.

Schedule of Expenditures of Federal Awards

We have audited the basic financial statements of West Baton Rouge Parish School Board, PortAllen, Louisiana as of and for the year ended June 30, 2006, and have issued our report thereon datedMarch 27, 2007. Our audit was performed for the purpose of forming an opinion on the basicfinancial statements taken as a whole. The accompanying schedule of expenditures of federal awardsis presented for purposes of additional analysis as required by OMB Circular A-133 and is not arerequired part of the basic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and , in our opinion, is fairly stated,in all material respects, in relation to the basic financial statements taken as a whole.

This report is intended solely for the information and use of management, the State of LouisianaLegislative Auditor, and federal awarding agencies and pass-through entities and is not intended tobe and should not be used by any one other than those specified parties. However, this report is amatter of public record and its distribution is not limited.

There were no comments related to compliance noted in the audit for the year ended June 30, 2005.

Baton Rouge, LouisianaMarch 27, 2007

56


SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFor the Year Ended June 30, 2006

FEDERAL GRANTOR/PASS THROUGH GRANTOR/PROGRAM NAME OR CLUSTER TITLE

FederalCFDA Number

Pass ThroughGrantorNumber Expenditures

United States Department of AgriculturePassed through Louisiana Department of Agriculture & Forestry

Food Distribution

Passed through Louisiana Department of EducationChild Nutrition Cluster

School Breakfast Program

National School Lunch ProgramSummer Food Service Program for Children

Total United States Department of Agriculture

United States Department of EducationPassed through Louisiana Department of Education

Vocational Education - Basic Grants - Carl Perkins

Special Education - Grants to States - (IDEA Part B)

Special Education - Preschool GrantsSpecial Education - Grants to States - Pro GED/Skills Options Program

Title I, CSRP Cohort 3Title I, Grants to Local Educational Agencies - Part A Basic

Title II, Part A, Teacher and Principal Training & Recruiting Fund

Title IV, Safe and Drug-Free Schools and Communities - State Grants

Title V, Innovative Program Strategies

Reading First

Enhancing Education Through Technology

Emergency Impact Aid for Displaced Students

Passed through Louisiana Community & Technical College SystemGreater Baton Rouge Tech Prep Consortium

Total United States Department of Education

United States Department of Health and Human Services

Passed through Louisiana Department of Health and Hospitals

Starting Points Preschool Program - TANF

Total United States Department of Health and Human Services

United States Department of Homeland SecuirilyPassed through State Department of Homeland Security

Emergency PreparednessPublic Assistance Grants

Total United States Department of Homeland Security

10.550

10.553

10.555

10.559

93.558

N/A

N/A

SFS-05

SFS-05

SFSP-03-03

28-05-38-61

97,036

85,419

835,803

299,025

14,046

1,234,293

84.048

84.027A84. 173 A

84.027A84.332A

84.01 OA

84.367A

81.186A84.298A

84.357A

84.3 18X

84.938C

84.243A

JB-04-02-61 -C,2fc-05-02-6V

28-05-B1-6128-05-PI-6128-03-BG-61

28-04-T6-61-C

04-TI-61,05-T1-61

28-05-50-61

28-05-70-61

28-05-80-61

28-03-RF-6I. 28-04-RF-6I

28-05-49-61:

S938C060045

SB61/04-05TP

53,206

593,79814,475

13,100164,427

820,489

293,916

18,151

13,047

338,473

11,9681,394,021

149,298

3,878,368

534,731

534,731

182.143

182142

Total Expenditures 5,647,392

THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT57


NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSYEAR ENDED JUNE 30. 2006

Note #1: BASIS OF PRESENTATION

The accompanying schedule of expenditures of federal awards includes the federal grantactivity of the West Baton Rouge Parish School Board and is presented on the modifiedaccrual basis of accounting. The information in the schedule is presented in accordancewith the requirements of OMB Circular A-133, Audits of States, Local Governments,and Non-Profit Organizations. Therefore, some amounts presented in this schedule maydiffer form amounts presented in, or used in the preparation of the general purposefinancial statements.

Note #2: FOOD DISTRIBUTION

Non-monetary assistance is reported in the schedule at the fair market value of thecommodities received and disbursed. At June 30, 2006, the School Board had foodcommodities totaling $17,110 in inventory.

58

38

Type of auditors' report issuedon compliance for major programs. Unqualified

Any audit findings disclosedthat are required to bereported in accordance withSection 510(a) of CircularA-133? Yes


SCHEDULE OF FINDINGS AND QUESTIONED COSTSYEAR ENDED JUNE 30. 2006

SECTION 1: SUMMARY OF AUDITORS' RESULTS

Financial Statements

Type of auditors' report issued Unqualified

Internal control over financial reporting:

Material weakness(es) identified? Yes

Reportable condition(s)identified that are notconsidered to be materialweakness? Yes

Noncompliance material tofinancial statements noted? Yes

Federal awards

Internal control over major programs:

Material weakness(es) identified? Yes

Reportable condition(s)identified that are notconsidered to be materialweakness(es)? Yes

X No

X NoneReported

X No

X No

X NoneReported

X None

59


SCHEDULE OF FINDINGS AND QUESTIONED COSTSYEAR ENDED JUNE 30.2006

(Continued)

Identification of major programs:

CFDA No.(s)84.938C93.558

Dollar threshold used todistinguish between type Aand type B programs:

Auditor qualified as low-risk auditee?

Name of Federal Program or ClusterEmergency Impact Aid for Displaced StudentsStarting Points

$ 300.000

X Yes No

SECTION II: FINANCIAL STATEMENT FINDINGS

No matters were required to be reported.

SECTION III: FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were required to be reported.

40 60

PERFORMANCE AND STATISTICAL DATA


Supplementary Schedules Required byLouisiana Revised Statute 24:514(1)For the Year Ended June 30,2006

The following nine (9) schedules are presented in compliance with Act 472 ofthe 1999 Regular Session of the Louisiana Legislature. These schedules presentin summary form certain financial, statistical and performance data which are requiredto be included in the financial statements of all Louisiana public school boards,effective for annual financial statements issued on or after June 30, 2002.

ERIC J. VICKNA1R, CPA ARC(CERTIFIED PUBLIC ACCOUNTANTS)

INDEPENDENT AUDITORS' REPORTON APPLYING AGREED-UPON PROCEDURES


We have performed the procedures included in the Louisiana Governmental Audit Guide andenumerated below, which were agreed to by the management of West Baton Rouge Parish SchoolBoard, Port Allen, Louisiana, and the Legislative Auditor, State of Louisiana, solely to assist users inevaluating management's assertions about the performance and statistical data accompanying theannual financial statements of West Baton Rouge Parish School Board and to determine whether thespecified schedules are free of obvious errors and omissions as provided by a Board of Elementary andSecondary Education (BESE) Bulletin. This agreed-upon procedures engagement was performed inaccordance with standards established by the American Institute of Certified Public Accountants andapplicable standards of Government Auditing Standards. The sufficiency of these procedures is solelythe responsibility of the specified users of the report. Consequently, we make no representationregarding the sufficiency of the procedures described below either for the purpose for which this reporthas been requested or for any other purpose.

Our procedures and findings related to the accompanying schedules of supplemental information andare as follows:

General Fund Instruction and Support Expenditures and Certain Local Revenue Sources {Schedule 1)

1. We selected a random sample of 25 transactions and reviewed supporting documentation todetermine if the sampled expenditures/revenues are classified correctly and are reported in the properamounts for each of the following amounts reported on the schedule:

Total General Fund Instructional Expenditures,

Total General Fund Equipment Expenditures,

Total Local Taxation Revenue,

Total Local Earnings on Investment in Real Property,

Total State Revenue in Lieu of Taxes,

Nonpublic Textbook Revenue, and

i jSENpALL CORRESPONDENCE TO THE BATON ROUGE ADDRESS)Nonpublic I ransportation Revenue. rtii^r F PHONE: (225) 292-1O4O

2933 BRAKLEY DRIVE, SUITE B BATON ROUGE, LOUISIANA 7O816 FAX: (225) 292-1O41564 FERDNAND STREET ST. FRANCISVILLE, LOUISIANA 70775 PHONE: (225) 635-4204

61


2. We found no differences as a result of the procedures.

Education Levels of Public School Staff (Schedule 2)

3. We reconciled the total number of full-time classroom teachers per the schedule"Experience of Public Principals and Full-time Classroom Teachers" (Schedule 4) to thecombined total number of full-time classroom teachers per this schedule and to school boardsupporting payroll records as of October 1, 2005.

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

5. We obtained a list of full-time teachers, principals, and assistant principals by classificationas of October 1, 2005 and as reported on the schedule. We traced a random sample of 25teachers to the individual's personnel file and determined if the individual's education levelwas properly classified on the schedule.


Number and Type of Public Schools (Schedule 3)

I. We obtained a list of schools by type as reported on the schedule. We compared the list tothe schools and grade levels as reported on the National School Lunch Program (CFDA10.555) application.


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

9. We obtained a list of full-time teachers, principals, and assistant principals by classificationas of October 1, 2005 and as reported on the schedule and traced the same sample used inprocedure 5 to the individual's personnel file and determined if the individual's experience wasproperly classified on the schedule.


Public Staff Data (Schedule 5)

I1. We obtained a list of all classroom teachers including their base salary, extra compensationand ROTC or rehired retiree status as well as full-time equivalent as reported on the scheduleand traced a random sample of 25 teachers to the individual's personnel file and determined ifthe individual's salary, extra compensation, and full-time equivalents were properly includedon the schedule.

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


Class Size Characteristics (Schedule 6)

14. We obtained a list of classes by school, school type, and class size as reported on the scheduleand reconciled school type classifications to Schedule C data, as obtained in procedure 5. We thentraced a random sample of 10 classes to the October 1, 2005 roll books for those classes anddetermined if the class was properly classified on the schedule.


Louisiana Educational Assessment Program (LEAP) for the 2st Century (Schedule 7)

16. We obtained test scores as provided by the testing authority and reconciled scores as reportedby the testing authority to scores reported in the schedule.


The Graduation Exit Exam for the 21st Century (Schedule 8)

1 8. We obtained test scores as provided by the testing authority and reconciled scores as reportedby the testing authority to scores reported in the schedule.


The Iowa Tests (Schedule 9)

20. We obtained test scores as provided by the testing authority and reconciled scores as reportedby the testing authority to scores reported in the schedule.

21 . We found no differences as a result of the procedures.

We were not engaged to, and did not, perform an examination, the objective of which would be theexpression of an opinion on management's assertions. Accordingly, we do not express such anopinion. Had we performed additional procedures, other matters might have come to our attentionthat would have been reported to you.

This report is intended solely for the user of management of West Baton Rouge Parish SchoolBoard, Port Allen, Louisiana, the Louisiana Department of Education, the Louisiana Legislature,and the Legislative Auditor, State of Louisiana, and should not be used by those who have notagreed to the procedures and taken responsibility for the sufficiency of the procedures for theirpurposes. Under Louisiana Revised Statute 24:513, this report is distributed by the LegislativeAuditor or as a public document.

Baton Rouge, Louisiana C n £i<J*a*r C/VMarch 27, 2007 *^

63

Schedule 1WEST BATON ROUGE PARISH SCHOOL BOARD


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

General Fund Instructional and Equipment ExpendituresGeneral Fund Instructional Expenditures:

Teacher and Student Interaction Activities:Classroom Teacher Salaries $ 8,585,889Other Instructional Staff Activities 854,045Employee Benefits 3,357,659Purchased Professional and Technical Services ] 74,222Instructional Materials and Supplies 709,053Instructional Equipment 13,283

Total Teacher and Student Interaction Activities $ 13,694,151

Other Instructional Activities 287,605

Pupil Support Activities 783,838Less: Equipment for Pupil Support Activities -

Net Pupil Support Activities 783,838

Instructional Staff Services 1,166,036Less: Equipment for Instructional StaffServices -

Net Instructional Staff Services LI 66.03 6

Total General Fund Instructional Expenditures 13,931,630

Total General Fund Equipment Expenditures 13,283

Certain Local Revenue Sources

Local Taxation Revenue:Constitutional Ad Valorem Taxes 942,644Renewable Ad Valorem Taxes 3,220,879Debt Service Ad Valorem Taxes 1,825,171Up to 1% of Collections by the Sheriff on Taxes Other than School Taxes 178,242Sales and Use Taxes 8,705,028

Total Local Taxation Revenue 14,871,964

Local Earnings on Investment in Real Property:Earnings from 16th Section Property 120,630Earnings from Other Real Property -

Total Local Earnings on Investment in Real Property 120,630

State Revenue in Lieu of Taxes:Revenue Sharing - Constitutional Tax 44,153Revenue Sharing - Other Taxes 61,650Revenue Sharing - Excess PortionOther Revenue in Lieu of Taxes -

Total State Revenue in Lieu of Taxes 105,803

Nonpubtic Textbook Revenue 13,768

Nonpublic Transportation Revenue 74,000

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WEST BATON ROUGE PARISH SCHOOL BOARDPort Allen, Louisiana

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

Schedule 3

TypeElementaryMiddle/Jr. HighSecondaryCombination

Total

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Public School Staff DataFor the Year Ended June 30, 2006

All ClassroomTeachers

Classroom TeachersExcluding ROTC

and Rehired Retirees

Average ClassroomTeachers' SalaryIncluding Extra Compensation

Average ClassroomTeachers' SalaryExcluding Extra Compensation

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

$ 34,792

$ 34,175

270.00

$ 34,309

$ 34,124

267.00

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The IOWA TestsFor the Year Ended June 30, 2006

Composite2006 2005 | : 2004

Test of Basic Skills (1TBS)Grade 3Grade 5Grade 6Grade 7

41%40%43%46%

53%56%47%53%

52%51%47%48%

Tests if Educational Development (1TED)[Grade 9 49%| 46%| 45%

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

72

Documents

2007 APR-2 PMI2'I*8app1.lla.state.la.us/PublicReports.nsf/EAB261F26BA... · 2007 APR-2 PMI2'I*8 WEST BATON ROUGE PARISH SCHOOL BOARD PORT ALLEN, LOUISIANA FINANCIAL STATEMENTS YEAR

2007 APR-2 PMI2'I8app1.lla.state.la.us/PublicReports.nsf/EAB261F26BA... · 2007 APR-2 PMI2'I8 WEST BATON ROUGE PARISH SCHOOL BOARD PORT ALLEN, LOUISIANA FINANCIAL STATEMENTS YEAR