LEGISLAliVE AUDITOR I 20D7FEB22 AN IMS Iapp1.lla.state.la.us/PublicReports.nsf/4A56EDCE206FC82D...LEGISLAliVE AUDITOR 20D7FEB22 AN IMS CAPITAL REGION PLANNING COMMISSION. A COMPONENT

IIIIIIIIIIIIIIIIIII

LEGISLAliVE AUDITOR

20D7FEB22 AN IMS

CAPITAL REGION PLANNING COMMISSION.A COMPONENT UNIT OF THE CITY

OF BATON ROIjGE/PARISH OF EAST EATON ROUGE

COMPONENT UNIT FINANCIAL STATEMENTS ANDINDEPENDENT AUDITOR'S REPORTS

JUNE 30. 2006

BATON POUCE. LOUISIANA

Under provisions of state law. this report is a puoiicdocument. 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

Certified Public Accourtams

I

RFCEIVEOLEGISLATIVE AUDITOR

Z001FED22 AM II' 15

CAPITAL REGION PLANNING COMMISSION.A COMPONENT UNIT OF THE CITY

OF BATON ROUGE/PARISH OF EAST BATON ROUGE

COMPONENT UNIT FINANCIAL STATEMENTS ANDINDEPENDENT AUDITOR'S REPORTS

JUNE 30. 2006

BATON ROUGE. LOUISIANA

CONTENTS

II• Audited Financial Statements:

• Independent Auditor's Report Page 1-2

• Required Supplemental Information:

I Management's Discussion and Analysis 3-6

I Government-Wide Financial Statements:

| Statement of Net Assets-Governmental Activities 7

| Statement of Activities - Governmental Activities 8

I Fund-Wide Financial Statements:

I Balance Sheet - Governmental Funds 9

• Reconciliation of Governmental Funds Balance Sheet toStatement of Net Assets 10i

Statement of Revenues, Expenditures, and Changes in FundI Balances- Governmental Funds 11-12

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

to the Statement of Activities 13

— Statement of Fiduciary Net Assets-Fiduciary Funds 14

_ Statement of Changes in Fiduciary Net Assets - Fiduciary Funds 15

i

IStatement of Revenues, Expenditures and Changes in Fund

•Balances - Budget (GAAP Basis) and Actual - GovernmentalFunds 16-17

B Notes to the Basic Financial Statements 18-25

• Other Supplementary Information:

• Supplementary Schedule of Indirect Cost Allocation Plan 26-27

I Schedule of Expenditures of Federal Awards 28

I Notes to the Schedule of Expenditures of Federal Awards 29

| Independent Auditor's Report on Internal Control Over FinancialReporting and on Compliance and Other Matters Based on an

•

Audit of Financial Statements Performed in Accordance withGovernment Auditing Standards.... 30-31

• Independent Auditor's Report on Compliance with RequirementsApplicable to each Major Program and Internal Control over

• Compliance in Accordance with OMB Circular A-133 32-33

• Schedule of Findings and Questioned Costs/Corrective Action Plans 34 - 36

• Summary Schedule of Prior Audit Findings 37

iiiiii

SamslEovrgcofyllPL -^^^^^^^^^^^H

Certified Public Accountants

iiiiiiiiiiiiiiii

Randy J. Bonnecaze, CPA* 2322 Tremont Drive Members American Institute of

R°oS±E. SE£. CPA'A* Baton Rouge, LA 70809 Certified Public Accountants

Femand P. Genre, CPA* Phone: (225) 928-4770Stephen M. Huggins, CPA* pax- (225) 926-0945 1175 Del Este Avenue, Suite BMonica L. Zumo, CPA* ' v * Denham Springs, LA 70726Ronald L, Gagnet, CPA*Douglas J. Nelson, CPA* www.htbcpa.comCeleste D. Viator, CPA*Laura E. Monroe, CPA*R. David Wascom, CPA**A Professional Accounting Corporation

February 16,2007

Independent Auditor's Report

The Commissioners of theCapital Region Planning Commission

Baton Rouge, Louisiana

We have audited the accompanying financial statements of the governmental activities, each majorprogram fund, and the aggregate remaining fund information of the Capital Region PlanningCommission (the Commission), Baton Rouge, Louisiana, a component unit of the City of BatonRouge/Parish of East Baton Rouge, as of and for the year ended June 30,2006, as listed in the table ofcontents- These financial statements are the responsibility of the Commission's management. Ourresponsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government AuditingStandards issued by the Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well as evaluating theoverall financial statement presentation. We believe that our audit provides a reasonable basis for ouropinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of the governmental activities, each major fund, and the aggregate remaining fundinformation of the Commission, as of June 30, 2006, and the changes in the financial position, thereoffor the year then ended in conformity with accounting principles generally accepted in the United Statesof America.

In accordance with Government Auditing Standards, we have also issued our report dated February 16,2007, on our consideration of the Commission's internal control over financial reporting and our tests ofits compliance with certain provisions of laws, regulations, contracts and grants. The purpose of thatreport is to describe the scope of our testing of internal controls over financial reporting and compliance

1

and the results of that testing and not to provide an opinion on internal control over financial reportingor on compliance. That report is an integral part of our audit performed in accordance with GovernmentAuditing Standards and should be used in conjunction with this report in considering the results of ouraudit.

The management's discussion and analysis is not a required part of the basic financial statements but issupplementary information required by the accounting principles generally accepted in the United Statesof America. We have applied certain limited procedures, which consisted principally of inquires ofmanagement regarding the methods of measurement and presentation of the supplementaryinformation. However, we did not audit the information and express no opinion on it.

Our audit was performed for the purpose of forming an opinion on the financial statements taken as awhole. The accompanying Schedule of Expenditures of Federal Awards and Schedule of IndirectCost Allocation Plan are presented for purposes of additional analysis, the first of which is required byU.S. Office of Management and Budget Circular A -133, Audits of States, Local Governments, andNon-Profit Organizations. Neither schedule is a required part of the basic financial statements.Such information has been subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, such information is fairly stated in all material respects inrelation to the financial statements taken as a whole.

Respectfully submitted,

Y. BffUAjtajj LL?

iiiiiiiiiIiiiiiii

CAPITAL REGION PLANNING COMMISSIONMANAGEMENT'S DISCUSSION AND ANALYSIS

The management's discussion and analysis of the Capital Region Planning commission's financial performance presentsa narrative overview and analysis of the Commission's financial activities for the year ended June 30, 2006. Thisdocument focuses on the current year's activities, resulting changes, and currently know facts.

FINANCIAL HIGHLIGHTS

The Commission's assets exceeded its liabilities at the close of the fiscal year 2006 by $738,588, compared with$757,334 last fiscal year.The net assets decreased by $18,746, as opposed to an increase of $3,244 last fiscal year;Operating grants decreased by $306,725 compared to the 2005 fiscal year;Total Commission expenses (net of indirect cost) decreased by $ 240,911or 2.1% in the relation to last fiscalyear;Total Commission revenues decreased by $262,901 or 22.9% in the relation to last fiscal year;

OVERVIEW OF THE FINANCIAL STATEMENTS

This management discussion and analysis is intended to serve as an introduction to the Capital Region PlanningCommission's basic financial statements. The Commission's basic financial statements comprise three components: (1)government-wide financial statements, (2) fund financial statements, and (3) notes to the basic financial statements.Under the new reporting model, the basic financial statements of the Commission will be less complex and presentfinancial information for the Commission as a whole, in a format designed to make the statements easier for the reader tounderstand. The annual financial report includes the Statement of Net Assets; the Statement of Net Activities; BalanceSheet of Governmental type funds; Notes to the Financial Statements. In addition to the basic financial statements andthe accompanying notes, other information in this report presents certain supplementary information concerning indirectcost allocation proposal, and Single Audit reports.

Government-Wide Financial StatementsThe government-wide financial statements present information for the Capital Region Planning Commission as a whole, ina format designed to make the statements easier for the reader to understand. This broad overview of the Commission'sfinances is done in a manner similar to private-sector business. The statements of this section include the Statements ofNet assets; the Statement of Activities.

Statement of Net Assets • presents information on all of the Commission's assets and liabilities, with the differencebetween the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicatorof whether the financial position of the Capital Region Planning commission is improving or deteriorating.

Statement of Activities - presents information showing how the Commission's assets changed as a result of current yearoperations. Regardless of when cash is affected, all changes in net assets are reported when the underlying transactionsoccur. As a result, there are transactions included that will not affect cash until future fiscal periods.

Fund financial StatementsA fund is a grouping of related accounts that is used to maintain control over resources that have been segregated forspecific activities or objectives. The Commission, like other state and local governmental entities, uses fund accounting toensure and demonstrate compliance with finance related legal requirements.

IIIIIIIIIIIIIIIIIII

CAPITAL REGION PLANNING COMMISSIONMANAGEMENT DISCUSSION AND ANALYSIS

Governmental funds - are used to account for essentially the same functions reported as governmental activities In thegovernment-wide financial statements. However, unlike the government-wide financial statements, governmental fundfinancial statements focus on near term inflows and outflows of spendable resources, as well as on balances ofexpendable resources at the end of the fiscal year. Such information may be useful in evaluating the Commission's near-term financing requirements.

Because the focus of the governmental funds is narrower than that of the government-wide financial statements, ft isuseful to compare the information presented for governmental funds with similar information presented for governmentalactivities in the government-wide financial statements. By doing so, readers may better understand the long-term impactof the Commissions near-term financing decisions. Both the governmental funds Balance Sheet and the governmentalfunds State of Revenues, Expenditures and Changes in Fund Balances provides a reconciliation to facilitate thiscomparison between governmental funds and governmental activities.

The Commission maintains six individual government funds. Information is presented separable in the government fundsBalance Sheet and in the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances forthe General Fund, Transportation Planning, Transit Planning, Air Quality, and the Economic Development Program, all ofwhich are considered to be major funds. The other two governmental funds are combined into a single, aggregatedpresentation labeled "Non-major Programs".

The Commission adopts an annual appropriated budget for the entity as a whole. Budgetary comparison statements havebeen provided to demonstrate performance of actual results with budgeted amounts.

Fiduciary funds are used to account for resources held for the benefit of parties outside the Commission. Fiduciary fundsare not reflected in the government-wide financial statements because the resources of those funds are not available tosupport the Commission's own programs. The Commission maintains one fiduciary fund (Agency fund) which constitutesan employee retirement account.

FINANCIAL ANALYSIS OF THE COMMISSION

As noted^earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case ofthe Capital Region Planning Commission, assets exceed liabilities by $738,588 at the close of the recent fiscal year whichprovides the Commission with a "healthy" net asset amount.

The Capital Region Planning Commission's Net Assets

Government Activities June 20.2006 June 30.2005(As Restated)

Assets:Current and Other Assets $ 833,475 $ 813,864Capital Assets 24.014 44.630

Total Assets 857.489 858.494

Liabilities:Current Liabilities 58,735 53,461Long-Term Liabilities 60.166 47.699

Total Liabilities 118.901 101.160

Total Net Assets $ 738,588 $ 757,334

IIIIIIIIIIIIIIIIIII

The composite net assets amount of $738,588 as of June 30, 2006 consists of investments in capital assets, andunrestricted net assets in the amounts of $ 24,014 and $714,574 respectively. As of June 30,2005, the composite netassets of $757,334 consisted of investment in capital assets of $44,630 and unrestricted net assets of $712,704.

Unrestricted net assets are those that do not have any limitations for what these amounts may be used. As referred topreviously, net assets of the Commission decreased by $18,746 or 2.5%, from June 30, 2005 to June 30,2006.

The Capital Region Planning Commission's Change in Net Assets

Government Activities June 20.2006 June 30.2005

Revenues:Program Revenue:

Operating Grants $ 686,559 $ 993,284General Revenue:

Dues 94,121 92,124In Kind 53,000 41,000Investment and Other 47.143 17.316

Total Revenues 880.823 1.143.724

Expenses:Program Expense 415,514 664,224Administration Expense 484.055 476.256

Total Expenses 899.569 1.140.480

Increase (Decrease) in Net Assets $ (18,746) $ 3,244

Revenues by Source - Governmental Activities

The Commission's total revenues decreased $262,901 compared to the 2005 fiscal year. The total cost of all programsand services decreased by $240,911 compared with last year.

Capital Assets

At the end of the fiscal year 2006, the Commission had $24,014 invested in a broad range of capita! assets, net of accumulateddepreciation. This amount represents a net decrease of just $ 20,616 ov er last year.

Government Activities

Furniture and EquipmentVehiclesAccumulated Depreciation

Totals

June 20. 2006

$ 319,85343,155

(338.994)

$ 24,014

June 30. 2005

$ 329,43069,992

(354.792)

$ 44,630

BUDGET

The annual budget is proposed by the executive director on an organizational-wide basis, and formally adopted by theBoard of Commissioners. The budget may be amended during the year at the Commission's discretion.

ICONTACTING THE COMMISSION FINANCIAL MANAGEMENT

| This financial report is designed to provide granting agencies, citizens, and oversight bodies with a general overview of theCapital Region Planning Commission's finances.

•If you have any questions about this report, contact the Executive Director, Capital Region Planning commission, PostOffice Box 3355, Baton Rouge, Louisiana 70821-3355.

iIIiIiiiiiiiIiii

IIIIIIIIII GOVERNMENT-WIDE FINANCIAL STATEMENTS

iiiiiiiii

ICAPITAL REGION PLANNING COMMISSION

STATEMENT OF NET ASSETS -• GOVERNMENTAL ACTIVITIES

AS OF JUNE 30,2006

i• ASSETS

Current Assets:

I Cash and Cash Equivalents $ 360,418Investments 304,104Grant Funds Receivable 105,123

• Other Receivables 63,830

Total Current Assets 833,475

Non-Current Assets:• Capital Assets, Net of Accumulated Depreciation 24,014

Total Non-Current Assets 24,014

• Total Assets 857,489

• LIABILITIES

Current Liabilities:• Accounts Payable 1,930

Deferred Revenue 56,805

I Total Current Liabilities 58,735

I Non-Current Liabilities:Accrued Compensated Absences Payable 60,166

Total Non-Current Liabilities 60,166

Total Liabilities 118,901

I Net Assets:Invested in Capital Assets, Net of Related Debt 24,014

• Unrestricted 7 1 49574

Total Net Assets S 738,588

i —The accompanying notes are an integral part of this statement.

i

IIIIIIIIIIIIIIIIIII

CAPITAL REGION PLANNING COMMISSION

STATEMENT OF ACTIVITIES - GOVERNMENTAL ACTIVITIES

Expenses:Auto InsuranceConsultant FeesDeferred CorDues and SutDepreciationEquipment F;Equipment RGeneral InsuiGroup InsuranceLegal and AceMiscellaneousOffice SuppliesPayroll TaxesPostageProfession!PublishingRent - InkindSalariesTelephoneTravel andVehicle Expense

Total Expense!

Indirect Expenses /

Total Expense

Program RevenueOperating Grants

Net Program E

General Revenues:Dues AssessmeiInkind RevenueInvestment InaOther Revenue

FOR THE YEAR ENDED JUNE 30,

Total

ice $ 2,663ees 68,456mpensation 55,147bscription 4,355i 23,514'acilities Maintenance 6,082lental 504xance 5,399ance 88,831^counting 11,199is 6,511ies 6,011s 4,953

1,907Education 6,408

2,1761 53,000

519,1326,608

jito Allowance 21,396ense 5,317

erases 899,569

ses Allocation

enses net of Indirect Cost 899,569

:nues:rants 686,559

am Expense (Revenue) 213,010

mes:ment 94,121aue 53,000ncome 5,347ue 41,796

eral Revenues 194,264

Net Assets (18,746)

sginning of Year as Restated 757,334

indofYear $ 738,588

2006

Administration

$ 2,6636,606

55,1473,968

23,5146,082

5045,399

88,83111,1994,7323,9114,9531,907-

1,62853,000

188,2006,6089,8865,317

484,055

(405,061)

78,994

_

78,994

Project Studiesand Planning

$61,850

-387

---

'---

1,7792,100--

6,408548

-330,932

-11,510

-

415,514

405,061

820,575

686,559

134,016

The accompanying notes are an integral part of this statement.8

IIIIIIIIII FUND-WIDE FINANCIAL STATEMENTS

iiiiiiiii

IIIIIIIIIIIIIIIIIII


BALANCE SHEET - GOVERNMENTAL FUNDS

AS OF JUNE 30,2006

Assets:Cash and Cash EquivalentsInvestmentsGrant Funds ReceivableInterfund ReceivablesOther Receivables

Liabilities:Accounts PayableInterfund PayablesDefered Revenues

Total Liabilities

Fund Balances:Unreserved, Undesignated Reported in:

General FundSpecial Revenue Funds

Total Fund Balances

General

$

$

$

n:

Fund

360,418304,104

-105,12363,830

833,475

1,93056,805

58,735

774,740

Transport Transit AirPlanning Planning Quality

$ $ $-

46,367 17,241 41,515..

$ 46,367 $ 17,241 $ 41,515

$ $ $ -46,367 17,241 41,515

46,367 17,241 41,515

.

774,740

$=ss:

833,475ss==;.==^——

$ 46,367 $ 17,241 $ 41,515


1111111111•i111

11111

TotalEconomic Non-Major Governmental

Development Programs Funds

$ $ - $ 360,418304,104105,123

56,805 - 161,92863,830

$ 56,805 $ - $ 995,403

$ $ - $ 1,930161,928

56,805 - 56,805

56,805 - 220,663

774,740

774,740

$ 56,805 $ - $ 995,403

IIIIIIIIIIIIIIIIIII


RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCESHEET TO THE STATEMENT OF NET ASSETS

FOR THE YEAR ENDED JUNE 30,2006

Total Fund Balances-Governmental Funds $ 774,740

The cost of capital assets (land, buildings, furniture and equipment)purchased or constructed is reported as an expense in governmental funds.The Statement of Net Assets includes those capital assets among the assetsof the Commission as a whole. The costs of those assets allocated over theirestimated useful lives (as depreciation expense) is reported in theStatement of Activities. Because depreciation does not effect financialresources, it is not reported in governmental funds.

Cost of Capital Assets $ 363,008Accumulated Depreciation (338,994)

24,014Elimination of Interfund Assets and Liabilities

Interfund Assets 161,928Interfund Liabilities (161,928)

Long-term liabilities applicable to the Commission's governmental activitiesare not due and payable in the current period and accordingly are notreported as fund liabilities. All liabilities both current and long-term arereported in the Statement of Net Assets.

Accrued Compensated Absences (60,166)

Net Assets - Governmental Activities $ 73 8,588


1111•

1

1v

1•

1•

1

1•i

1•

11


STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES -GOVERNMENTAL FUNDS

FOR THE YEAR ENDED JUNE 30, 2006

General Transport Transit

Revenues:Federal FundingLocal Funding:Dues AssessmentOutside Agency Local MatchSpecial Planning Projects

Inkind RevenueOther IncomeInvestment Income

Total Revenues

Expenditures:Current:

Auto InsuranceConsultant FeesDeferred CompensationDues and SubscriptionsEquipment and Facilities MaintenanceEquipment RentalGeneral InsuranceGroup InsuranceLegal and AccountingMiscellaneousOffice SuppliesPayroll TaxesPostageProfessional EducationPublishingRent - InkindSalariesTelephoneTravel and Auto AllowanceVehicle Expenses

Capital Outlay

Total Expenditures

Fund Planning Planning

$ - $ 418,613 $ 162,795

94,1212,620.

53,00040,323

5,347

195,411 418,613 162,795

2,6636,606 61,850

55,1473,968 87 2006,082

5045,399

88,83111,1994,732 1,573 2043,911 2,1004,9531,907

5,483 5551,628 548

53,000175,733 199,740 89,782

6,6089,886 7,403 2,7025,3174,045

452,119 278,784 93,443

(CONTINUED)11

AirQuality

$ 41,515

.

-----

41,515

_

------------_

--

18,667----

18,667

III111•V1111111•

11111

TotalEconomic Non-major Governmental


$ 41,966 $ - $ 664,889

94,1212,620

21,670 21,67053,00040,3235,347

41,966 21,670 881,970

2,66368,45655,147

100 - 4,3556,082

5045,399

88,83111,199

2 - 6,5116,0114,9531,907

370 - 6,4082,176

53,00022,743 - 506,665

6,6081,405 - 21,396

5,3174,045

24,620 - 867,633

111

Indirect Cost Allocations1 Total Expenditures Net of

Indirect Cost Allocations

• Excess (Deficiency) of Revenuesover Expenditures

| Other Financing Sources (Uses):Transfers In

• Transfers (Out)

Net Other Financing Sources (Uses)

™ Net Change in Fund Balances

I Fund Balances, Beginning of Year -As Restated

( Fund Balances, End of Year

iiiiiiii

The accompanying notes are an integral j

General Transport Transit AirFund Planning Planning Quality

(405,061) 244,483 109,893 22,848

47,058 523,267 203,336 41,515

148,353 (104,654) (40,541)

27,901 104,654 40,541(161,917)

(134,016) 104,654 40,541

14,337

760,403

$ 774,740 $ $ $ -

part of this statement.12

111111111

111111111

TotalEconomic Non-major Governmental


27,837

52,457 - 867,633

(10,491) 21,670 14,337

10,491 - 183,587(21,670) (183,587)

10,491 (21,670)

14,337

760,403

$ $ - $ 774,740

1111I11•p

1

11••

1


RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OFREVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES TO

STATEMENT OF ACTIVITIES


Total Net Changes in Fund Balances - Governmental Funds $

Capital outlays are reported in governmental funds as expenditures.However in the Statement of Activities, the cost of those assets isallocated over their estimates useful lives as depreciation expense.The amount by which capital outlays exceed depreciation is describedas follows:

Capital outlays which were capitalized 4,045Depreciation expense (23,514)

Cost basis of capital assets retired during year

Elimination of interfund transactions:

Transfers in 183,587Transfers out (183,587)

14,337

(19,469)(1,147)

IIIIII

In the Statement of Activities, certain operating expenses-compensated absences and vacation- are measured by the amountearned during the year. In the governmental funds however,expenditures for these items are measured by the amount of thefinancial resources used (essentially, the amounts actually paid).This year, vacation and sick time earned exceeded the amountsused by the following amount. (12,467)

Change in Net Assets of Governmental Activities $ (18,746)



STATEMENT OF FIDUCIARY NET ASSETS - FIDUCIARY FUNDS

AS OF JUNE 30,2006

iiiii

ASSETS

Investments $ 1,111,830

LIABILITIES

• Total Assets $ 1,111,830

ii

Net Assets Held in Trust for Pension Benefits $ 1,111,830

iTotal Liabilities

iThe accompanying notes are an integral part of this statement.i

11111i1

11111I1111


STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS - FIDUCIARY FUNDS

AS OF JUNE 30, 2006

Additions:Contributions:

Employer $ 50Plan Members 3

Total Contributions 54

Investment Income (Net of Expenses) 73

Total Additions 128

Deductions:Benefits 15

Total Deductions 15

Change in Net Assets 113

Net Assets Held in Trust for Pension Benefits:Beginning of Year 998

End of Year $ 1,111


,650,898

,548

,836

,384

,087

,087

,297

,533

,830


STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

I

III

I

II

II

BUDGET CGAAP BASIS) AND ACTUAL - GOVERNMENTAL FUNDS


Revenues:Federal FundingState FundingLocal Funding:

Dues AssessmentOutside Agency Local MatchSpecial Planning Projects

Inkind RevenueInvestment IncomeOther Income

Total Revenues

Expenditures:Current:

Auto InsuranceConsultant FeesContingencyDeferred CompensationDues and SubscriptionsEquipment and Facilities MaintenanceEquipment RentalGeneral InsuranceGroup InsuranceLegal and AccountingMiscellaneousOffice SuppliesPayroll TaxesPostageProfessional EducationPublishingRent - InkindSalariesTelephone

OriginalBudget

$1,220,0033,200

94,1212,000

20,00048,0004,000-

1,391,324

7,000209,796

15,00075,0007,000

25,0002,0007,500

109,00015,00025,00012,0006,5002,500

10,00010,00048,000

691,52810,000

FinalBudget

$1,220,0033,200

94,1212,000

20,00048,0004,000-

1,391,324

7,000209,796

15,00075,000

7,00025,000

2,0007,500

109,00015,00025,00012,0006,5002,500

10,00010,00048,000

691,52810,000

ActualAmounts

$664,889-

94,1212,620

21,67053,0005,347

40,323

881,970

2,66368,456

-55,1474,3556,082

5045,399

88,83111,1996,5116,0114,9531,9076,4082,176

53,000506,665

6,608

Variance

$(555,114)(3,200)

-620

1,6705,0001,347

40,323

(509,354)

4,337141,34015,00019,8532,645

18,9181,4962,101

20,1693,801

18,4895,9891,547

5933,5927,824

(5,000)184,863

3,392

(CONTINUED)16

I_ Original Final Actual• Budget Budget Amounts Variance

i

iThe accompanying notes are an integral part of this statement.

I 17

Travel and Auto Allowance 30,000 30,000 21,396 8,604

I Vehicle Expenses 8,000 8,000 5,317 2,683Capital Outlay 45,000 45,000 4,045 40,955

• Total Expenditures 1,370,824 1,370,824 867,633 503,191

Indirect Cost Allocations -

Total Expenditures Net of IncludingIndirect Cost Allocations 1,370,824 1,370,824 867,633 503,191

I Excess (Deficiency) of Revenuesover Expenditures 20,500 20,500 14,337 (6,163)

I Other Financing Sources (Uses):Transfers In - - 183,587 (183,587)

• Transfers (Out) - - (183,587) 183,587

Net Other Financing Sources (Uses) - - - -

• Net Change in Fund Balances 20,500 20,500 14,337 (6,163)Fund Balances, Beginning of Year -

I As Restated 760,403 760,403 760,403 -

Fund Balances, End of Year $ 780,903 $ 780,903 $774,740 $ (6,163)

I

IIIIIIIIIIIIIIIIIII


NOTES TO THE BASIC FINANCIAL STATEMENTS

JUNE 30,2006

Note 1 - Summary of Significant Accounting Policies -

Basis of Presentation

The accounting and reporting policies of the Commission conform to accounting principlesgenerally accepted in the United States of America as applicable to governmental units. TheGovernmental Accounting Standards Board (GASB) is the accepted standard-setting body forestablishing governmental accounting and financial reporting principals. Such accounting andreporting procedures also conform to the requirements of Louisiana Revised Statutes 24:517 and tothe industry audit Guide, Audits of State and Local Governmental Units.

The 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.

Financial Reporting Entity

The financial reporting entity consists of (a) the primary government (board), (b) organizations forwhich the primary government is financially accountable, and (c) other organizations for whichnature and significance of their relationship with the primary government are such that exclusionwould cause the reporting entity's financial statements to be misleading or incomplete.

The Governmental Accounting Standards Board (GASB) issued Statement No.39, determiningwhether certain organizations are component units, amends GASB 14 to provide additionalguidance to determine whether certain organizations for which the primary government is notfinancially accountable should be reported as component units based on the nature and significanceof their relationship with the primary government. Generally, it requires reporting, as a componentunit, an organization that raises and hold economic resources for the direct benefit of agovernmental unit and is effective for periods beginning after June 15,2003.

Organizations that are legally separate, tax-exempt entities and that meet all of the followingcriteria should be discretely presented as component units. These criteria are:

1. The economic resources received or held by the separate organization are entirely or almostentirely for the direct benefit of the primary government, its component units, or itsconstituents.

2. The primary government, or its component units, is entitled to, or has the ability to otherwiseaccess, a majority of the economic resources received or held by the separate organization.

3. The economic resources received or held by an individual organization that the specificprimary government, or its component units, is entitled to, or has the ability to otherwiseaccess, are significant to that primary government.

18

IIIIIIIIIIIIIIIIIII

Based on the application of the above criteria, it was determined the Capital Region PlanningCommission has no potential component unit. As a result, this report includes all funds and accountgroups which are controlled by or dependent on the Commission or Board of Commissioners.Control by or dependence on the Commission was determined on the basis of budget adoption,and other general oversight responsibility.

The Commission is a component unit of the City of Baton Rouge\Parish of East Baton Rouge. TheCommission does not act as an oversight unit for any component units.

Fund Accounting

The District uses fund accounting to report on its financial position and the results of its operations.Fund accounting is designed to demonstrate legal compliance and to aid financial management bysegregating transactions relating to certain government functions or activities. A fund is a separateaccounting entity with a self-balancing set of accounts. Revenues are accounted for in theseindividual funds based upon the purpose for which they are to be spent and the means by whichspending activities are controlled. The funds presented in the financial statements as described asfollows:

Governmental Fund Types

Governmental funds account for the Commission's general activities, including the collection anddisbursement of specific or legally restricted monies, the acquisition or construction of generalfixed assets, and the servicing of general long-term debt. Governmental funds of the Commissioninclude:

1. General Fund - the general operating fund of the Commission and accounts for all financialresources, except those required to be accounted for in other funds.

2. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds ofspecific revenue sources that are legally restricted to expenditures for specific purposes. Thesefunds account for the revenues and expenditures related to federal, state and local grantprograms established for various objectives.

Fiduciary Fund Types

Fiduciary Funds are used to account for assets held by the Commission in a trustee capacity. TheCommission maintains one fiduciary fund type, pension trust fund. The Trust Fund is used toreport fiduciary resources held in trust and the receipt, investment and distribution of retirementcontributions.

Measurement Focus/Basis Of Accounting

Basic Financial Statements - Government-Wide Financial Statement (GWFS)

The Statement of Net Assets and the Statement of Activities displays information about thereporting government as a whole. Fiduciary funds are not included in the GWFS. Fiduciary funds arereported only in the Statement of Fiduciary Net Assets at the fund financial statement level.

The GWFS were prepared using the economic resources measurement focus and the accrual basis ofaccounting. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange or

19

IIIIIIIIIIIIIIIIIII

exchange-like transactions are recognized when the exchange occurs (regardless of when cash isreceived or disbursed). Revenues, expenses, gains, losses, assets and liabilities resulting fromnonexchange transactions are recognized in accordance with the requirements of GASB StatementNo. ?>3>, Accounting and Financial Reporting for Nonexchange Transactions.

Basic Financial Statements - Fund Financial Statements (FFS)

Fund financial statements report detailed information about the Commission. The focus ofgovernmental financial statements is on major funds rather than reporting funds by type. Eachmajor fund is presented in a separate column. Non-major funds are aggregated & presented in asingle column.

Governmental Funds

The accounting and financial reporting treatment applied to a fund is determined by itsmeasurement focus. All governmental fund types are accounted for using a current financialresources measurement focus. With this measurement focus, only current assets and currentliabilities generally are included on the balance sheet. Operating statements of these funds presentincreases (i.e., revenues, and other financing sources) and decreases (i.e., expenditures and otherfinancing uses) in net current assets.

Pension trust funds recognize employer and participant contributions hi the period in whichcontributions are due and the Commission has made a formal commitment to provide thecontributions. Retirement benefits and refunds are recognized when due and payable in accordancewith the terms of the Plan.

The modified accrual basis of accounting is used by Governmental Funds. Under the modifiedaccrual basis of accounting, revenues are recognized when susceptible to accrual (i.e.5 when theybecome both measurable and available). Measurable means the amount of the transaction can bedetermined and available means collectible within the current period or soon enough thereafter(generally 60 days) to be used to pay liabilities of the cuirent period. Expenditures are recordedwhen the related fund liability is incurred. The Governmental Funds use the following practices inrecording revenues and expenditures

Revenues - Federal and state entitlements are recorded when available and measurable. Federal andstate grants as well as local match monies which are restricted as to the purpose of the expendituresare recorded when the reimbursable expenditures have been made. Local member assessments arerecorded in the year the assessments are due and payable. Such amounts are measurable andavailable to finance current operations. Investment income and in kind revenues are recorded whenearned. Substantially all other revenues are recorded when received.

Expenditures - All expenditures are generally recognized under the modified accrual basis ofaccounting when the related fund liability is incurred.

Deferred Revenues - Deferred revenues arise when resources are received before the Commissionhas a legal claim to them, such as when grant monies are received prior to the incurrence ofqualifying expenditures. Grant funds receivable arise when resources are expended on qualifiedgrant expenditures and have not been reimbursed by the funding agency. In subsequent periods,when the Commission has a legal claim to the resources or receives the reimbursement, the liabilityfor deferred revenue or receivable asset is removed and the revenue is recognized.

20

IIIIIIIIIIIIIIIIIII

D. Budget Practices And Budgetary Accounting

The Commission budget, prepared in accordance with generally accepted accounting principles,is proposed by the executive director on an organization-wide basis, and formally approved andadopted by the Board of Commissioners. The budget may be amended during the year at theCommissioners1 discretion. These appropriations lapse at year-end and any unexpendedappropriations are rebudgeted in the subsequent year. Accordingly, encumbrances are notprovided for hi the financial statements.

E. Cash. Cash Equivalents And Investments

Cash includes amounts in demand deposits, interest-bearing demand deposits, and money marketaccounts. Cash equivalents include amounts hi time deposits or investments with original maturitydates of less than 90 days. It is the Commissions policy only to invest in insured or compensatedgovernmental backed securities.

F. Accrued Compensated Absences

The Commission's full-time employees who work year-round are granted vacation hi varyingamounts up to a maximum of 21 days per year. The cumulative amount of leave which can becarried forward is the amount earned over the last two years of employment. The Commission'spolicy specifically prohibits the payment of any accumulated sick leave at separation andconsequently no sick leave is accrued.

G. Indirect Cost Allocations

Allocable indirect costs are initially charged to the General Fund during the year. The Commissionuses the prior year rate hi estimating indirect costs to be charged the special revenue funds duringthe year for billing purposes. At the end of each year the actual indirect cost rate and charges to thespecial revenue funds are computed and appropriate adjustments are made. Allocable indirect costsexclude equipment purchases and payroll benefit costs, but provide for depreciation of capital assetscomputed over estimated useful lives of three to ten years. The indirect costs are then allocated tothe special revenue funds based on direct salaries.

H. Capital Assets

Capital assets are recorded at historical or estimated historical cost for assets where actual historicalcost is not available and depreciated over their estimated useful lives. Donated capital assets arerecorded at their estimated fair market value at the date of donation. The costs of normalmaintenance and repairs that do not add value of the asset or materially extend asset lives are notcapitalized.

I. Estimates

The preparation of financial statements hi conformity with accounting principles generally acceptedhi the United States of America requires management to make estimates and assumptions that affectthe reported amounts and disclosures of contingent assets or liabilities as of the date of the financialstatements and the reported amounts of revenues and expenses during the reporting period. Actualresults could differ from those estimates.

21

IIIIIIIIIIIIIIIIIII

Note 2 - Cash, Cash Equivalents, and Investments -

Cash and Cash Equivalents

At June 30, 2006, the carrying amount of the Commission's Cash and Cash Equivalents totaled5360,418, and the confirmed bank balances totaled $377,703, Cash and Cash Equivalents arestated at cost, which approximates market. Under state law, these deposits (or the resulting bankbalances) must be secured by federal deposit insurance or the pledge of securities owned by thefiscal agent bank. The market value of the pledged securities plus the federal deposit insurancemust at all times equal the amount on deposit with the fiscal agent bank. The following is asummary of cash and cash equivalents at June 30,2006.

Deposits in Bank AccountsOther (Money

Cash Market Accounts) TotalDeposits in Bank Accounts per

Balance Sheet $ 181,144 $ 179,274 $ 360,418

Bank Balances (Category 3 Only):a. Uninsured and Uncollateralized $ 33,696 $ - $ 33,696b. Uninsured and Collateralized with

Securities Held by the PledgingInstitution -

c. Uninsured and Collateralized withSecurities Held by the PledgingInstitution's Trust Department orAgent, but not in the Entities Name - - -

Total Category 3 Bank Balances $ 33,696 $ - $ 33,696

Total Bank Balances (Regardlessof Category) $ 198,429 $ 179,274 $377,703

Custodial Credit Risk - Deposits, hi the case of deposits, this is the risk that in the event of abank failure, the Commission's deposits may not be returned to it. As of June 30,2006, $33,696 ofthe Commission's bank balance of $377,703 was exposed to custodial credit risk because it wasuninsured and uncollateralized.

Investments

Custodial Credit Risk - Investments. Custodial credit risk for investments is the risk that in theevent of the failure of the counterparty to a transaction, the Commission will not be able to recoverthe value of investment or collateral securities that are in the possession on an outside party.Investments are exposed to custodian credit risk if the securities are uninsured and unregistered andare either held by the counterparty, or by the counterparty's trust department or agent but not in thename of the Commission. At June 30, 2006, all of the Commission's investments were securedfrom risk completely through SIP C insurance coverage.

22

IIIIIIIIIIIIIIIIIII

Interest Rate Risk - Investments

Interest rate risk is defined as the risk that changes in interest rates will adversely affect the fairvalue of investments. Also, investments can be highly sensitive to changes hi interest rates dueto their terms or characteristics. One of the ways that the Commission manages its exposure tointerest rate risk is by purchasing a combination of shorter term and longer term investments andby timing cash flows from maturities so that a portion of the portfolio is maturing or coming closeto maturity evenly over time as necessary to provide the cash flow and liquidity needed foroperations.

Information about the sensitivity of the fair values of the Commission's investments to marketinterest rate fluctuations is provided by the following table that shows the distribution of theCommission's investments by maturity:

Investment Type 12mthsorless 13to24mths 25 to 60 mths >60 mths Total

SecuritiesTime Deposits

Total

$ 123,707

$ 123,707

$ -112.060

$112,060

$ -68.337

$ 68,337

$ -

$ -

$ 123,707180.397

$304,104

Credit Risk - Investments

The credit risk of investments is the risk that the issuer or counterparty will not meet its obligations.This credit risk is measured by the credit quality ratings of investments in debt securities as describedby nationally recognized statistical rating organizations (rating agencies) such as Standard & Poor's(S&P) and Moody's. Both groups of investment types maintained a "AAA" credit rating during the2006 fiscal year.

Concentration of Credit Risk - Investments

The concentration of credit risk is the risk of loss that may occur due to the amount of investmentin a single issuer (not including investments issued or guaranteed by the U.S. government,investments in mutual funds or external investment pools).

The investment policy of the Commission contains no limitations on the amount that can be investedin any one issuer beyond that stipulated by the State of Louisiana Investments hi any one issuer(other than U.S. Treasury securities and mutual funds) that represent 5% or more of totalCommission investments are as follows:

Issuer Investment Type Reported Amount

Merrill LynchMerrill LynchMerrill LynchBank One

Time DepositsTune DepositsTime DepositsTime Deposits

$ 24,46640,03346,20141,393

Total $ 152,093

23

IIIIIIIIIIIIIIIIIII

Note 3 - Capital Assets -

A summary of changes in capital assets are as follows:

July 1.2005 Additions Deletions June 30.2006Capital Assets:

Furniture Fixtures, Office Equipment $ 329,430Vehicles 69,992Accumulated Depreciation (354.792)

$ 4,045-

(23.514)

$ (13,622)(26,837)

39312

$319,85343,155

(338.994)

Capital Assets, net $ 44,630 $(19,469) $ (1,147) $ 24,014

Depreciation expense amounted to $23,514 for 2006.

Note 4 - Deferred Compensation Plan -

The Commission offers its employees a deferred compensation plan created in accordance withInternal Revenue Code Section 457. The assets of the Plan are held in trust for the exclusivebenefit of the participants and their beneficiaries. The custodian thereof for the exclusive benefitof the participants holds the custodial account for the beneficiaries of this plan, and the assets maynot be diverted to any other use. The administrators are agents of the employer for purposes ofproviding direction to the custodian of the custodial account from time to time for the investmentof the funds held in the account, transfer of assets to or from the account, and all other matters.The plan, available to all full-time employees meeting specific length of service criteria, permitsthem to defer a portion of then: salary, for federal income tax purposes, until future years. Thedeferred compensation is not available to employees until termination, retirement, death orunforeseeable emergency. The Commission funds the plan by making contributions to a planadministrator, on a monthly basis, at rates ranging from 7.5% to 12.5% of the employees'compensation. The contribution rate for employees is based on their employment longevity. Theplan administrator offers a variety of investment alternatives directly to the participant. Commissionemployees have collectively selected a fund which consists of investments in insurancecompanies -

• rated A or above as to claims paying ability by Mood/s rating service,• similarly rated by other major rating services, or,• approved by the plan administrator's internal credit analysis function where no rating service is

available.

No more than 35% of the portfolio is invested with any single insurance company. The rates ofreturn since the fund's inception in 1984 range from 6.80% to 11.75% per annum.

Note 5 - Federal Grants -

The Commission participates in a number of federally-assisted grant programs. Although the grantprograms have been audited in accordance with the Single Audit Act through June 30, 2006, theseprograms are still subject to financial and compliance audits and resolution of previously identifiedquestioned costs. The amount, if any, of expenditures which may be disallowed by the grantingagencies cannot be determined at this time, although the Commission expects such amounts, if any tobe immaterial.

24

IIIIIIIIIIIIIIIIIII

Note 6 - Prior Period Adjustment -

A prior period adjustment was made to the net assets of the Commission to restate the accountsreceivable and deferred revenue balance as of June 30,2005.

Government-Wide Fund-WideFinancial Statements Financial Statements

Net Assets/Fund Balances at June 30,2005, asOriginally Reported $ 529,895 $ 532,964

To Restate the Accounts Receivable and DeferredRevenue Balance of Federal Grant Funds 227,439 227.439

Net Assets/Fund Balances at June 30,2005, asRestated $ 757,334 $ 760,403

Note 7 - Employee Theft -

The Commission's staff upon discovery of the apparent misuse of public funds notified the DistrictAttorney's office and Legislative Auditor's office and requested assistance in this matter. As aresult of allegations received by the State of Louisiana Legislative Auditor, a compliance audit wasperformed to substantiate or refute the allegations. As documented in the State of LouisianaLegislative Auditor's report dated September 6, 2006, several occurrences of employee theft werenoted. The total amount of the unauthorized transactions was $79,922, of which $40,323 related toprior fiscal years. The Commission was able to obtain restitution of $18,027 from the employeeupon termination prior to year-end. A receivable from a claim filed with the insurance companyforihe remaining $61,895 is reflected in these financial statements. These funds were receivedsubsequent to year-end and prior to the issuance of this report. The unauthorized transactions of$40,323 that relate to prior years have been reflected in these financial statements as other income.

25

OTHER SUPPLEMENTARY INFORMATION

11

1••

1•

1•

1•i

1•

11•

1•

1


SUPPLEMENTARY SCHEDULE OF INDIRECT COST ALLOCATION PLAN


Expenses:Auto InsuranceConsultant FeesDues and SubscriptionsDepreciationDeferred CompensationEquipment and Facilities MaintenanceEquipment RentalGeneral InsuranceGroup InsuranceLegal and AccountingMiscellaneousOffice SuppliesPayroll TaxesPostageProfessional EducationPublishingRent - InkindSalariesTelephoneTravel and Auto AllowanceVehicle ExpensesCapital Outlay

Total Expenditures

Adjustmentsto arrive

General Fund at AllocableExpenditures Cost

$ 2,663 $6,606 (6,606)3,968

23,51455,147 (55,147)6,082

5045,399

88,831 (88,831)11,1994,732 (4,732)3,9114,9531,907_

1,62853,000

175,733 (82,639)6,6089,8865,3174,045 (4,045)

$ 452,119 $ (218,486)

Reconcilation of

AllocableAdministrative

Cost

$ 2,663-

3,96823,514

-6,082

5045,399-

11,199-

3,9114,9531,907-

1,62853,00093,0946,6089,8865,317-

$ 233,633

Allocable General and AdministrativeCosts to General Fund Expenditures:

Allocable General and Administrative CostsAdd:

Equipment PurchasesDeferred Compensation, Miscellaneous,Group InsurancePay Add

Deduct:Depreciation

General Fund Expenditures per Audit Report

See auditor's report.

233,633

4,045and Consultant Fees 66,485

88,83182,639

(23,514)

$ 452,119

26

1111•

1••

11•

—1

11•

11

1•_1

11


SUPPLEMENTARY SCHEDULE OF INDIRECT COST ALLOCATION PLAN


Direct Salaries:FTALA-90-X250FTALA-80-X013FTALA-80-X014PL 736-1 7-0342EDA 08-83-03912Ridesharing 737-96-1600

Total Direct Salaries Federal Programs

Payroll Benefit Cost:Pay AddInsurance

Total Payroll Benefit Cost

Indirect Cost Allocation Computation:Overhead RatePayroll Rate

Indirect Cost Rate

Overhead Rate Computation:Adjusted Overhead Costs

Total Direct Salaries

Payroll Benefit Rate Computation:Total Payroll Benefit Costs

Total Direct Salaries

Total Indirect Cost:Direct Salaries (Federal Programs)Indirect Cost Rate

Indirect Cost computed on Federal Programs

Indirect Cost agreed upon for non-Federal special projects

Total Indirect Cost

See auditor's report.27

2006

$

$sssssa

$

$^^=S

$

$^S=

$

$=

$

70,471539

18,772199,74022,74318,667

330,932=BS SSSS

82,63988,831

171,470=S5^S=^^

0.7060.518

1.224

233,633

330,932^==^=

171,470

330,932' ^ SSSSSSSSS

330,9321.224

= $ 0.706=====

= $ 0,518

$ 405,061

-

$ 405,061

1CAPITAL REGION PLANNING COMMISSION

I

•

iii

ii

••

iiiii

SUPPLEMENTARY SCHEDULE OF EXPENDITURES


Federal Grantor/Pass-Through CFDAAgency/Program Identification Number

U. S. DEPARTMENT OF TRANSPORTATION

Passed through Louisiana Departmentof Transportation and Development;

Technical Studies Grant:LA-80-X014 20.505LA-90-X250 20.505LA-80-X013 20.507

Highway Research, Planningand Construction:

State Project No.LA-736-17-0342 20.205LA-737-96-1600 Ridesharing 20.205

Total U. S. Department of Transportation

U. S. DEPARTMENT OF COMMERCE

Economic Development AdministrationArea Planning Assistance ProgramAward No. 08-83-03912 11.302

Total U. S. Department of Commerce

Total Expenditures

See auditor's report.28

OF FEDERAL AWARDS

2006

Federal Shareof Program

Expenditures

$ 33,400128,311

1,085

418,61341,514

622,923

41,966

41,966

$ 664,889*— «^^- ' '—• —

TotalProgram

Expenditures

$ 41,750160,389

1,356

523,26641,514

768,275

52,457

52,457

$ 820,732

IIIIIIIIIIIIIIIIIII


Note 1 -General -

The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federalawards programs of the Capital Region Planning Commission (the Commission), Baton Rouge,Louisiana, The Commission's reporting entity is defined in note 1 of the Commission's financialstatements. All federal awards received directly from federal agencies, as well as federal awardspassed through other government agencies are included on the schedule.

Note 2 - Basis Of Accounting

The accompanying Schedule of Expenditures of Federal Awards is presented using the modifiedaccrual basis of accounting which is described in note 1 of the Commission's basic financialstatements. Revenues are recognized to the extent of expenditures.

Note 3 - Relationship To Financial Statements

Federal awards expenditures are reported in the Commission's basic financial statements ascomponents of the Transportation Planning, Transit Planning, Air Quality, Economic Development,and Nonmajor Programs columns in the Statement of Revenues, Expenditures and Changes inFund Balances on page 11 and 12.

Note 4 - Relationships To Federal Financial Reports

Amounts reported in the accompanying schedule agree with the amounts in the related federalfinancial reports.

Note 5 - Major Federal Awards

The dollar threshold of $300,000 was used to distinguish between Type A and Type B federalprograms. For those funds that have matching revenues and state funding, federal expenditures weredetermined by deducting matching revenues from total expenditures.

29

IIIIIIIIIIIIIIIIIII

INDEPENDENT AUDITOR'S REPORT ON INTERNALCONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHERMATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITHGOVERNMENT AUDITING STANDARDS

IIIIIIIIIIIIIIIIII


Randy J. Bonnecaze, CPA* 23 22 Tremont Drive Members American Institute ofJoseph D. Richard, Jr., CPA* fi Rouee T A 70809 Certified Public AccountantsRonnie E. Stamper, CPA* & 'Fernand P. Genre, CPA* Phone: (225) 928-4770Stephen M. Huggins, CPA* pax- (225) 926-0945 *175 Este Avenue, Suite BMonica L. Zumo, CPA* ' v ' Denham Springs, LA 70726Ronald L. Gagnet, CPA*Douglas J. Nelson, CPA* www.htbcpa.comCeleste D. Viator, CPA*Laura E. Monroe, CPA*R. David Wascom, CPA**A Professional Accounting Corporation l7CDrU*liy 1 Oj £\J\J I



We have audited the financial statements of the Capital Region Planning Commission (theCommission), Baton Rouge, Louisiana, a component unit of the City of Baton Rouge/Parish of EastBaton Rouge, as of and for the year ended June 30, 2006, and have issued our report thereon datedFebruary 16, 2007. We conducted our audit in accordance with auditing standards generally acceptedin the United States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the Commission's internal control over financialreporting in order to determine our auditing procedures for the purpose of expressing our opinion onthe financial statements and not to provide an opinion on the internal control over financial reporting.However, we noted certain matters involving the internal control over financial reporting and itsoperation that we consider to be reportable conditions. Reportable conditions involve matters comingto our attention relating to significant deficiencies in the design or operation of the internal control overfinancial reporting that, in our judgment, could adversely affect the Commission's ability to initiate,record, process, and report financial data consistent with the assertions of management in the financialstatements. Reportable conditions are described in the accompanying schedule of findings andquestioned costs as items 2006-1 and 2006-2.

A material weakness is a reportable condition in which the design or operation of one or more of theinternal control components does not reduce to a relatively low level the risk that misstatements causedby error or fraud in amounts that would be material in relation to the financial statements being auditedmay occur and not be detected within a timely period by employees in the normal course of performingtheir assigned functions. Our consideration of the internal control over financial reporting would notnecessarily disclose all matters in the internal control that might be reportable conditions and,accordingly, would not necessarily disclose all reportable conditions that are also considered to bematerial weaknesses. However, we believe that none of the reportable conditions described above is amaterial weakness.

30

IIIIIIIIIIIIIIIIIII

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Commission's financial statements arefree of material misstatement, we performed tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements, noncompliance with which could have a direct andmaterial effect on the determination of financial statement amounts. However, providing an opinionon compliance with those provisions was not an objective of our audit, and accordingly, we do notexpress such an opinion. The results of our tests disclosed instances of noncompliance or other mattersthat are required to be reported under Government Auditing Standards, and which are described in theaccompanying schedule of findings and questioned costs as items 2006-3 - 2006-5.

In addition, the State of Louisiana Legislative Auditor performed a compliance audit on the CapitalRegion Planning Commission and issued a report dated September 6,2006. This report is available onthe State of Louisiana Legislative Auditor's website at www.lla.state.la.us. The report's identificationnumber is 06202022. Compliance issues addressed in the report principally related to 1) unauthorizedpayments and expenditures, 2) improper leave and severance payments, and 3) poor business practices.Management's responses to these matters are included in that report.

This report is intended solely for the information and use of the Commission, the Commission'smanagement and the Federal awarding agencies and pass-through entities, such as the State ofLouisiana and Legislative Auditor's Office, and is not intended to be and should not be used by anyoneother than these specified parties. However, under the provisions of Louisiana Revised Statute 24:513,this report is distributed by the legislative auditor as a public document and its distribution is notlimited.


f. BauAaut&j LL?

31

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCEWITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAMAND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE

WITH OMB CIRCULAR A-133

IIIIII


Randy J. Bonnecaze, CPA* 2322 Tremont Drive Members American Institute ofJoseph D. Richard, Jr CPA* fi Rouge LA 70809 Certified Public AccountantsRonnie E. Stamper, CPA* & 'FernandP.Genre,CPA* Phone: (225) 928-4770Stephen M. Huggins, CPA* Fax: (225) 926-0945 AMonica L. Zumo, CPA* v Denham Springs, LA 70726Ronald L. Gagnet, CPA*Douglas J. Nelson, CPA* www.htbcpa.comCeleste D. Viator, CPA*Laura E. Monroe, CPA*R. David Wascom, CPA*

*A Professional Accounting Corporation

February 16,2007



Compliance

We have audited the compliance of the Capital Region Planning Commission (the Commission), BatonRouge, Louisiana, a component unit of the City of Baton Rouge/Parish of East Baton Rouge, with thetypes 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 forthe year ended June 30, 2006. The Commission's major federal programs are identified in thesummary of auditor's results section of the accompanying schedule of findings and questioned costs.Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of itsmajor federal programs is the responsibility of the Commission's management. Our responsibility is toexpress an opinion on the Commission'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 hi GovernmentAuditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMBCircular A-133 require that we plan and perform the audit to obtain reasonable assurance aboutwhether noncompliance with the types of compliance requirements referred to above that could have adirect and material effect on a major federal program occurred. An audit includes examining, on a testbasis, evidence about the Commission's compliance with those requirements and performing suchother procedures as we considered necessary hi the circumstances. We believe that our audit providesa reasonable basis for our opinion. Our audit does not provide a legal determination on theCommission's compliance with those requirements.

In our opinion, the Commission, complied, hi all material respects, with the requirements referred toabove that are applicable to each of its major federal programs for the year ended June 30, 2006.However, the results of our auditing procedures disclosed an instance of non-compliance with thoserequirements, which is required to be reported in accordance with OMB Circular A-133 and which isdescribed in the accompanying schedule of findings and questioned costs as item 2006-3.

32

IIIIIIIIIIIIIIII

Internal Control Over Compliance

The management of the Commission, is responsible for establishing and maintaining effective internalcontrol over compliance with requirements of laws, regulations, contracts, and grants applicable tofederal programs. In planning and performing our audit, we considered the Commission's internalcontrol over compliance with requirements that could have a direct and material effect on a majorfederal program in order to determine our auditing procedures for the purpose of expressing ouropinion on compliance and to test and report on the internal control over compliance in accordancewith OMB Circular A-133.

We noted a certain matter involving the internal control over compliance and its operation that weconsider to be a reportable condition. A reportable condition involves a matter coming to our attentionrelating to significant deficiencies in the design or operation of the internal control over compliancethat, in our judgment, could adversely affect the Commission's ability to administer a major federalprogram in accordance with the applicable requirements of laws, regulations, contracts, and grants.The reportable condition is described in the accompanying schedule of findings and questioned costsas item 2006-3.

A material weakness is a reportable condition in which the design or operation of one or more of theinternal control components does not reduce to a relatively low level the risk that noncompliance withapplicable requirements of laws, regulations, contracts and grants caused by error or fraud that wouldbe material in relation to a major federal program being audited may occur and not be detected within atimely period by employees in the normal course of performing their assigned functions. Ourconsideration of the internal control over compliance would not necessarily disclose all matters in theinternal control that might be reportable conditions and, accordingly, would not necessarily disclose allreportable conditions that are also material weaknesses. However, we believe that none of thereportable conditions described above is a material weakness.

In addition, the State of Louisiana Legislative Auditor performed a compliance audit on the CapitalRegion Planning Commission and issued a report dated September 6,2006. This report is available onthe State of Louisiana Legislative Auditor's website at www.lla.state.la.us. The report's identificationnumber is 06202022. Compliance issues addressed in the report principally related to 1) unauthorizedpayments and expenditures, 2) improper leave and severance payments, and 3) poor business practices.Management's responses to these matters are included in that report.

This report is intended solely for the information and use of the Commission, the Commission'smanagement, and the federal awarding agencies and pass-through entities, such as the State ofLouisiana and the Legislative Auditor's office, and is not intended to be and should not be used byanyone other than these specified parties. However, under the provisions of Louisiana Revised Statute24:513, this report is distributed by the legislative auditor as a public document and its distribution isnot limited.


Y. BffUA&totoJj LL?

ii 33

1111•

1

1•

11


SCHEDULE OF FINDINGS AND QUESTIONED COSTS


(1) Summary of Auditors' Results

Financial Statements

Type of auditors' report issued: Unqualified.

• Material weakness(es) identified?• Reportable condition(s) identified that are

not considered to be material weaknesses?

Noncompliance material to financial statements noted?

Federal Awards

Internal control over major programs:

• Material weakness(es) identified?• Reportable conditions) identified that are

not considered to be material weaknesses?

Yes x no

x Yes none reported

Yes x no

Yes x no

x Yes none reported

Type of auditors' report issued on compliance for major programs: Unqualifiediii-

Any audit findings disclosed that are requiredto be reported in accordance with section 5 1 0 (a )of Circular A-133?

Identification of major program:

CFDA Number20.205

x Yes no

Name of Federal ProgramHighway Planning and Construction

— • The threshold for distinguishing types A & B programs was program expenditures exceeding

ii

$300,000.• The System did quality as a low-risk auditee.

(2) Findings Relating to the Financial Statements Reported in accordance with Government AuditingStandards:

2006-1 - Investments

Finding:

During the current year, it was noted that the Merrillreconciled to the monthly statement at June 30, 2006. The

34

Lynch investment account had not beenappropriate adjusting entries were proposed

and recorded to properly reflect the investment balance at June 30,2006.

Recommendation:

We recommend that the investment account balance in the general ledger be reconciled with theinvestments statement on a monthly basis.

Management's Response:

Management concurs with this finding and will make every effort to reconcile the investmentstatements on a monthly basis.

2006-2 -Reconciliations

Finding:

During the current year, it was noted that various balance sheet accounts were not reconciled as of June30, 2006. In addition, there were several mispostings to these accounts noted during our testing.However, the appropriate adjusting journal entries have been proposed and recorded to reflect thecurrent general ledger balances as of June 30,2006.

Recommendation:

We recommend that all balance sheet accounts be reconciled on a regular basis.


Management concurs with this finding and will make every effort to reconcile all balance sheetaccounts on a regular basis.

2006-3 - Payroll

Finding:

During the current year, it was noted that payroll checks had been issued to employees prior to the endof the pay period.

Recommendation:

We recommend that all payroll checks be issued to the employees on or subsequent to the last day ofthe appropriate pay period.


Management concurs with this finding and will no longer issue payroll checks prior to the last day ofthe pay period.

35

IM 2006-4 - Inadequate Security for Deposits

Finding:

| In the current year, approximately $33,696 of the $377,703 of deposits with financial institutions wasunsecured at June 30,2006.

| LA. Rev. Statute 39:1225, requires that balances on deposit with financial institutions are to be securedby a pledge of securities in amounts which at all times are to be equal to 100% of the amount of

I collected funds on deposit to the credit of the depositing authority in excess of federally insured limits.Unsecured deposits are subject to loss in the event of failure of the financial institution.

• Recommendation:

We recommend that management take the necessary steps to obtain adequate security for deposits in• excess of FDIC insurance.


• Management concurs with this finding and will take the necessary steps to obtain adequate security fordeposits hi excess of FDIC insurance.

• 2006-5 - Failure to Complete Audit Report Within Six Months of the Close of the Fiscal Year -(LSA-R.S.24:513):

Finding:

I During .the current year, due to the numerous findings noted in the report of the Legislative Auditors• and prior period adjustments noted in our report, the Commission failed to comply with the above

revised statute regarding timely completion of their audit report. The current audit was not completed• and submitted to the Legislative Auditor until January 2007.

Recommendation:

We recommend that all future audit reports be submitted timely as required by the revised statute_ mentioned above.


• Management concurs with this finding and plans to submit all future reports timely.

• (3) Findings and Questioned Costs Relating to Federal Awards:

See finding 2006-3 in (2) above.

iii 36


-

• No prior year audit findings.

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


ii• 37

Documents

LEGISLAliVE AUDITOR I 20D7FEB22 AN IMS Iapp1.lla.state.la.us/PublicReports.nsf/4A56EDCE206FC82D...LEGISLAliVE AUDITOR 20D7FEB22 AN IMS CAPITAL REGION PLANNING COMMISSION. A COMPONENT