Primary Government Financial Statements

Jdoy

DESOTO PARISH POLICE JURY Mansfield, Louisiana

Primary Government Financial Statements

Year Ended December 31.2011 With Supplemental Infomiation Schedules

Under provisions of state law, this report is a public document.Acopyofthereporthas been submitted to the entity and other appropnate pubiic officials. The report is available for public inspection at the Baton Rouge office of the LegislativeAuditor and, where appropriate, at the office of the parish cierk of court.

Release Date J U L 1 8 2 0 1 2

DESOTO PARISH POLICE JURY Mansfield, Louisiana

Table of Contents December 31.2011

Page

Independent Auditor's Report 5-6

Required Supplementary Information - Part I:

Management's Discussion and Analysis 8-18

Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Assets 21

Statement of Activities 23

Fund Financial Statements:

Balance Sheet - Governmental Funds 25-26

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 27

Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 28-29

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Govemmental Funds to the Statement of Activities 30

Proprietary Fund:

Statement of Net Assets 32

Statement of Revenues. Expenses, and Changes in Fund Net Assets 33

Statement of Cash Flows 34

Notes to Financial Statements 36-65

Required Supplementary Information - Part II:

Budgetary Comparison Schedules:

General Fund 68-69

Solid Waste Fund 70

Road Fund 71

Airport Fund 72

DeSoto Parish Police Jury Mansfield, Louisiana

Table of Contents (Continued) December 31,2011

Budgetary Comparison Schedules - (Continued):

Sales Tax Fund 73

Notes to Required Supplementary Infomiation 74

Other Supplementary Information:

Other Govemmental Funds 76

Combining Balance Sheet- Other Governmental Funds 77

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances-Other Govemmental Funds 78-79

Schedule of Compensation Paid to Police Jurors 80

Schedule of Expenditures of Federal Awards 81-82

Notes to the Schedule of Expenditures of Federal Awards 83

Financial Data Schedule 84

Other Reports:

Report on Intemal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Govemment Auditing Standards 86-87

Report on Compliance with Requirements Applicable to Each Major Program and Intemal Control Over Compliance in Accordance With OMB Circular A-133 88-89

Schedule of Findings and Questioned Costs 90-91

Management'sSummaryScheduleof Prior Audit Findings 92-93

Independent Auditor's Report

Johnson, Thomas & Cunningham Certified Public Accountants

Eddie G. Johnson, CPA - A Professional Corporation (1927-1996) 32| Bienville Street Mark D. Thomas. CPA - A Professional Corporation Natchitoches, Louisiana 71457 Roger M. Cunningham, CPA - A Professional Corporation (3*8) 352-3652 Jessica H. Broadway, CPA - A Professional Corporation Fax (318) 352-4447 Ryan E. Todtenbier, CPA - A Professional Corporation

INDEPENDENT AUDITOR'S REPORT

To the Jury Members ofthe DeSoto Parish Police Jury

We have audited the accompanying financial statements ofthe govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund information ofthe DeSoto Parish Police Jury, Mansfield, Louisiana, as of and for the year ended December 31, 2011, which collectively comprise the basic financial statements ofthe Police Jury's primary govemment as listed in the Table of Contents, These financial statements are the responsibility ofthe DeSoto Parish Police July's management. Our responsibility is to express opinions on these financial statements based on our audit.

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

The financial statements do not include financial data for the Police Jury's legally separate component units. Accounting principles generally accepted in the United States of America require the financial data for those component units to be reported with the financial data of the Police Jury's primary govemment unless the Police Jury also issues financial statements for the financial reporting entity that include the financial data for its component units. The Police Juiy has not issued such reporting entity financial statements. Because of this departure from accounting principles generally accepted in the United States of America, the amount of assets, liabilities, net assets, revenues and expenses ofthe aggregate discretely presented component units that would have been presented is unknown.

In our opinion, because of the omission of the discretely presented component units, as discussed above, the financial statements referred to above do not present fairly, in conformity with accounting principles generally accepted in the United States of America, the financial position of the aggregate discretely presented component units ofthe DeSoto Parish Police Jury, as of December 31, 2011, or the changes in financial position thereof for the year then ended.

Members of AICPA Members of AICPA Govemmental Audit Quality Center Members of Society of Louisiana CPA's

In addition, in our opinion, except for the effects of omitting component units, as discussed above, the financial statements referred to above present fairly in all material respects, the financial position of the govemmental activities, business-type activities, each major fund and the aggregate remaining fund information of the DeSoto Parish Police Jury, as of December 31, 2011, and the changes in financial position and, where applicable, cash flow thereof, for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated June 28, 2012, on our consideration of the DeSoto Parish Police Jury's mtemal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of intemal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the intemal control over financial reporting or on compliance.

That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in conjunction with this report in considering the results of our audit.

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 8 through 18 be presented to supplement the basic financial statements. Such information, although not a part ofthe basic financial statements, is required by the Govemmental Accounting Standards Board, which considers it to be an essential part of financial reporting for placing the basic fmancial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the management's discussion and analysis in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. However, the introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements ofthe DeSoto Parish Police Jury's primary govemment. The budgetary comparisons listed as other required supplemental information in the table of contents and the combining nonmajor fimd financial statements, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part ofthe basic financial statements ofthe Jury. The budgetary comparison statements, combining nonmajor fund financial statements and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underiying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

Johnson, Thomas & Cunningham, CPA's

June 28,2012 Natchitoches, Louisiana

Required Supplementary Information - Part I

Managements Discussion and Analysis

DESOTO PARISH POLICE JURY MANAGEMENT'S DISCUSSION AND ANALYSIS

As management ofthe DeSoto Parish Police Jury, Mansfield, Louisiana, (hereafter referred to as the Police Jury) we offer the readers of the Police Jury's financial statements this narrative overview and analysis of the financial activities of the Police Jury as of and for the year ended December 31, 2011. We encourage readers to consider the information presented here in conjunction with the Police Jury's basic financial statements and supplementary infonnation provided In this report in assessing the efficiency and effectiveness of our stewardship of public resources.

FINANCIAL HIGHLIGHTS

The Police Jury's total net assets increased $18,213,277 (21.15%) during 2011 compared to an increase of $14,392,325 (20.06%) the prior year. At December 31,2011, the assets of the Police Jury exceeded its liabilities by $104,334,098 compared to the prior year's ending net assets of $86,133,134. This increase is primarily due to an increase of sales and use taxes and property taxes.

Unrestricted net assets, which represents the amount available to be used to meet ongoing obligations to the citizens of DeSoto Parish and creditors in accordance with the Police Jury's fund designation and fiscal policies decreased $4,081,699 (31.79%) during 2011 to $8,756,788 compared to an decrease of $3,131,139 (19.61%) as of December 31, 2010.

Capital outlays for the year ended December 31. 2011, totaled $32,600,502. This total includes $22,413,665 fbr road constmction. During 2010 capital outlays totaled $9,662,775 with $6,507,872 expended in the road fund.

Material expenditures for road repairs increased $1,102,431 to $6,102,323 from $4,204,757 spent In 2010.

Due to the Increase In property tax collected, the Police Jury retired its $2,198,000 In general obligation bonds funding the courthouse renovation during 2011. As a result of the advance payment, the Police Jury was required to pay a two percent premium of $39,280; however, the Police Jury saved $305,747 in future interest payments.

During 2011 sales taxes increased $438,536 (2.22%) to $20,180,706 from $19,742,170.

Solid waste tipping Iises Increased $388,980 (27.4%) from $1,419,770 during 2010 to $1,808,750 during 2011.

During 2011, the DeSoto Parish Police Jury received $3,211,945 fbr royalties and leasing of its oil, gas. and other liquid or gaseous minerals compared to $3,098,569 In 2010.

The General Fund and Solid Waste Fund made operating transfers of $6,900,000 and $1,600,000, respectively, to the Road Fund during 2011.

The Police Jury's total general and program revenues were $49,000,567 In 2011 compared to $45,653,122 In 2010.

During the year ended December 31, 2011. the Police Jury had total expenses, excluding depreciation of $28,247,876, compared to $28,496,233 in 2010.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis Is intended to serve as an Introduction to the Police Jury's basic financial statements. The Police Jury's basic financial statements Include three components: (1) govemment-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. The basic financial statements include two kinds of financial statements that present different views of the Police Jury - the Govemment-Wide Financial Statements and the Fund Financial Statements. The Notes to the Financial Statements explain some of the Infonnation In the financial statements and provide additional detail. This report also contains additional required supplementary information (budgetary schedules) and other supplementary infonnation In addition to the basic financial statements. These components are described below:

Govemment-Wide Financial Statements

The government-wide financial statements provide a broad overview of the Police Jury's operations In a manner similar to a private-sector business. The statements provide both short-term and long-temri information about the Police Jury's financial position, which assists users in assessing the Police Jury's economic condition at the end of the year. These statements are prepared using the economic resources measurement focus and the accmal basis of accounting similar to methods used by most businesses. These statements report all revenues and expenses connected with the year even if cash has not been received or paid and Include all assets of the Police Jury (including infrastmcture) as well as all liabilities (including long-tenn debt). Additionally, certain eliminations have occurred as prescribed by GASB 34 in regards to interfund activity, payables, and receivables. The govemment-wide financial statements Include two statements:

• The statement of net assets presents information on all of the Police Jury's assets and liabilities, with the difference between the two reported as "net assets". Over time. Increases or decreases In the Police Jury's net assets may serve as a useful indicator of whether the financial position of the Police Jury Is improving or deteriorating.

• The statement of activities presents Infonnation showing how the Police Jury's net assets changed during the most recent year using the full accrual basis of accounting. All changes in net assets are reported as soon as the underiying event giving rise to the change occurs, regardless of the timing of the related cash flows. Therefore, some revenues and some expenses that are reported In this statement will not result in cash flovvs until future years.

These two statements report the Police Jury's net assets and changes In them. You can think of the Police Jury's net assets - the difference between assets and liabilities - as one way to measure the Police Jury's financial health, or financial position. Over time, increases or decreases in the Police Jury's net assets are one Indicator of whether Its financial health is improving or deteriorating. You will need to consider other non-financial factors, however, such as changes in the Police Jury's property tax base, to assess the overall health of the Police Jury.

Both of the above financial statements have separate sections for the two dlffierent types of Police Jury activities. These activities are:

Govemmental Activities - The activities in this section are mostly supported by taxes and intergovemmental revenues (grants). Most services normally associated with a police jury fall Into this category, including general govemment, public safety, public works, sanitation, health and wel^re, cultural and recreation, community development, economic development, and transportation.

Business-type Activities - These functions are normally intended to recover all or a significant portion of their costs through user fees and charges to extemal users of goods and services. The business-type activities of the Police Jury consist of the provision of sewer services.

The Government-Wide financial statements can be found immediately following this discussion and analysis.

Fund Financial Statements

A fund Is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Police Jury, like other state and local govemments, uses fijnd accounting to ensure and demonstrate compliance with finance-related legal requirements.

The fund financial statements focus on Individual parts of the Police Jury government, reporting the Police Jury's operations in more detail than the government-wide statements. The funds of the Police Jury can be divided into two categories. It Is important to note that these fijnd categories use different accounting approaches and should be interpreted differently. The two categories of fijnds are:

• Govemmental funds. Most of the basic services provided by the Police Jury are financed through govemmental fijnds. Govemmental funds are used to account for essentially the same fijnctions reported as govemmental activities in the government-wide financial statements. However, unlike the government-wide financiai statements, the fund financiai statements focus on near-tenn inflows and outflows of spendable resources, as well as on balances of spendable resources at the end of the year. Such information may be useful In evaluating the Police Jury's near-tenn financing requirements. This

approach Is known as using the flow of financial resources measurement focus and the modified accmal basis of accounting. These statements provide a detailed short-temi view of the Police Jury's finances and assists In determining whether there will be adequate financial resources available to meet the current needs ofthe Police Jury.

Because the focus of the governmental funds financial statements is narrower than that of the govemment-wide financial statements, it is useful to compare the information presented for govemmental funds with similar information presented for govemmental activities in the government-wide financial statements. By doing so, users may better understand the long-term Impact of the Police Jury's near-temn financing decisions. Both the govemmental funds balance sheet and the govemmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental fijnds and the govemmental activities. These reconciliations are presented on the page, immediately following each govemmental fijnds financial statement.

The Police Jury maintains thirteen govemmental funds: the General Fund and twelve special revenue fijnds. Information is presented separately In the govemmental funds balance sheet and In the govemmental fijnds statement of revenues, expenditures and changes In fijnd balances fbr the General Fund, the Solid Waste Fund, the Road Fund, the Airport Fund, the Sales Tax Fund, and the WIA Fund, which are classified as major funds. Data from the other non-major governmental funds are combined Into a single, aggregated presentation. Individual fund data for each of these non-major govemmental funds is provided In the fonn of combining statements elsewhere in this report.

The basic govemmental fijnds financial statements can be found immediately following the govemment -wide financial statements.

• Proprietary Funds. These funds are used to show activities that operate more like those of commercial enterprises. Because these fijnds charge fees fbr services provided to outside customers they are known as enterprise funds. Proprietary funds provide the same type of information as the govemment-wide financial statements, only In more detail. Like the govemment-wide financial statements, proprietary fund financial statements use the accmal basis of accounting. There is no reconciliation needed between the govemment-wide financial statements for business-type activities and the proprietary fund financial statements.

The Police Jury has one enterprise fund, the Eastside Sewer Fund, which Is considered a major proprietary fijnd for presentation purposes.

The basic proprietary fund financial statements can be found Immediately following the govemmental fund financial statements.

Notes to the Financial Statements

The notes to the financial statements provide additional Information that Is essential to a fijil understanding of the data provided in the govemment-wide and fund financial statements. The notes to the financial statements can be found Immediately following the funds financial statements.

Required Supplementarv Information

The basic financial statements are followed by a section of required supplementary Infomiation. This section Includes budgetary comparison schedules for the General Fund and major special revenue funds. Annual budgets are prepared on the cash basis. Following the required supplementary information is supplementary Infonnation including a combining balance sheet for other govemmental funds, a combining statement of revenues, expenditures and changes In fijnd balances for other govemmental funds, a schedule of compensation paid to police jurors, and a schedule of expenditures of federal awards that are provided to show additional details.

10

FINANCIAL ANALYSIS OF GOVERNMENT-WIDE ACTIVITIES

Net Assets

As noted eariier, net assets may serve over time as a usefijl indicator of the Police Jury's financial position. The Police Jury's combined net assets (govemmental and business-type activities) totaled $104,346,412 at December 31,2011.

The portion of the Police Jury's net assets, $69,394,641 (66.5%), reflects Its Investment In capital assets such as land, buildings, equipment, sewer plant and improvements, and Infi^stmcture (streets, bridges, lighting, sidewalks and drainage Improvements), less any related debt used to acquire those assets that is still outstanding compared to $37,072,890 (43.04%) as of December 31. 2010. The Police Jury uses these capital assets to provide services to the citizens of the parish; consequently, tiiese assets are not available for future spending. Although tiie Police Jury's Investment in its capital assets Is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

An additional portion ofthe Police Jury's net assets, $26,194,983 (25.1%) compared to $$36,221,757 (42.05%) as of December 31.2010, represents resources that are subject to restrictions on how they may be used.

The remaining of tiie Police Jury's net assets, $8,756,788 (8.39%) and $12,838,487 (14.91%) as of December 31, 2011 and 2010, respectively, is unrestricted and may be used to meet the Police Jury's ongoing obligations to citizens and creditors at tiie discretion of the jurors.

Assets:

Current and other assets

Capital assets

Total assets

Llabnitles:

Current liabilities

Long-term liabliities

outstanding

aher Habilities

Total liabilities

Net Assets

Invested in capital assets

-net of related debt

Restricted

Unrestricted

Total net assets

Governmental

Activities

2011

$ 42,411.077

69.434.452

111.845.529

3.148.898

3.673.352

689.181

7.511,431

69,384.466

26.194.983

8,754.649

$104,334,098

2010

$ 56,686.797

39.382.831

96.069.628

4.161,960

5.533,650

257,938

9,953,548

37.062.715

36.221.757

12,831.608

$ 86,116.080

Business-Type

Activities

2011

$ 3,956

10.175

14.131

1.547

-270

1,817

10,175

-2.139

12.314

2010

$ 7.298

10.175

17.473

152

-270

422

10.175

-6.876

$ 17,051

Total

2011

$ 42,415.033

69,444,627

111.859.660

3.150,445

3,673.352

689.451

7.513.248

69.394.641

26.194.983

8,756.788

$ 104,346.412

1

2010

$ 56,694.095

39,393.006

96,087,101

4,162.112

5.533.650

258.208

9,953,970

37,072,890

36,221,757

12.838,484

$86,133,131

11

Net Assets

$70,000,000 f

$60,000,000

$50,000,000

$40,000,000

$30,000,000 -

$20,000,000

$10,000,000 -] '

$-

2011

2010

&

• . ^ i ^

_< c° <e"

# # # . ^ ^ .^^^ . ^ ^

.o^

<^

O" J ^' .e^ . ^ ,o^^ - ^

^^ C^ <<f>

V „<?

r.^ ?y

V'

.\^

x<^'^^

Changes in Net Assets

$3,434,504 (7.04%) of the Police Jury's total revenues was derived through charges for services during 2011 compared to $3,521,322 (7.71%) for the prior year. $35,588,575 (72.63%) was derived from general revenues including taxes, video poker revenues, state revenue sharing, rent and royalties, sale of assets, and interest compared to $32,830,530 (71.89%) during 2011. The Police Jury received $9,976,488 (20.36%) and $9,316,284 (20.40%) of its total revenues through program grants and contributions during 2011 and 2010, respectively.

The largest expenses were for public works $12,636,561 (41.1%), economic development $3,360,679 (10.91%), general government $5,391,531 (17.52%), sanitation $2,801,479 (9.104%), community development $2,711,919 (8.81%), public safety $1,193,238 (3.88%), health and welfare $1,462,801 (4.75%), transportation $520,251 (1.69%) and animal control $293,683 (.95%). In fiscal year 2011, governmental activity expenses exceeded program revenues resulting in the use of $20,796,066 in general revenues, mostly taxes and prior year accumulated net assets. Net expenses from business-type activities in fiscal year 2011 exceeded revenues by $14,737.

12

2011

REVENUES

Capital Grants & Contributions

6%

Operating Contrib

14%

Charges for Services 7%

Other revenue 1%

Charges for Services

I Operating Grants & Contr ibut ions

I Capital Grants & Contr ibut ions

I Taxes

Other revenue

Rentals, Leases & Royalties

Interest on Investments

2010

REVENUES

Capital Grants & Contributions

2%

Oper Contributions

19% ther revenue

0%


7%

Charges for Services

I Operating Grants & Contr ibut ions

Capital Grants & Contr ibut ions

I Taxes

Other revenue


Interest on Investments

13

Culture & Recreation

1%

Health & Welfare 5%

Public Safety 4%

Interest Long-term Debt 0%

2011 EXPENSES

I General Government

I Public Safety

I Public Works

I Sanitation

I Culture & Recreation

I Health & Welfare

I Community Development

I Economic Development

I Animal Control

I Transportation

I Sewer

I Interest Long-term Debt


1% 2010

EXPENSES

Health & Welfare

Public Safety

4%

General Government

Public Safety

Public Works

Sanitat ion


Health & Welfare

Communi ty Development

Economic Development

An imal Contro l

Transportat ion

Sewer

interest Long-term Debt Interest Long-term

Debt

0% -Transportat ion

1 %

Animal Control

0%

14

Governmental Activities

Business-Type

Activities Total

Revenues:

Program revenues:

Charges for services

Operating grants

and contributions

Capita) grants

and contributions

General revenues:

Taxes

State revenue sharing

Video poker

Rentals, leases

and royalties

Interest

Gain(los&) on sale of assets

Other

Total revenues

Expenses:

General government

Rjblic safety

Rjblic works

Sanitation

Culture and recreation Health and w elfare

Community development

Economic development

Transportation

Animal control

Sewer

Interest on tong-term debt

Total expenses

Increase (decrease) in net

assets before transfers

and special item

Transfers

Special item-DeSoto Parish

Communications District

Change in net assets

2011 2010

$ 3,435,504

6.886.621

3.089.867

30.285,765

60,225

164,685

3.211,946

1.198,966

405,973

261.016

49,000.568

5,391,529

1.193.238

12.636.561

2.801.479

307,813

1,462,801

2.711,919

3,360.679

520,251

293.683

92.597

18.228,018

(10,000)

18.218.018

$ 3,506,308

8,608.859

707,425

28.795,545

53,348

154,489

3.098,569

814.362

(124,300)

38.517

45,653,122

4.990,225

1.278,896

10.877,700

2,979.232

193,246

1,147,118

2,998,432

5,320.251

379.917

131.913

89.659

30.772.550 30.386,589

Netassets-beginning(restated) 86,116.080

Net assets - ending $104.334.098

15.266.533

(8.500)

(862,953)

14,395,080

71.721,000

2011 2010 2011 2010

$12 ,818 $ 15.014 S 3,448.322 $ 3,521,322

6,886.621 8.608,859

12.818

27.555

27.555

(14.737)

10.000

(4,737)

17,051

15,014

26,269

26,269

(11.255)

8.500

(2.755)

19,806

3,089.867

30.285.765 60.225

164.685

3.211,946 1.198.966

405.973 261.016

707.425

28.795.545 53,348

154,489

3,098,569 814,362

(124,300) 38.517

49,013,386

5.391,529

1.193.238

12,636.561

2,801,479

307,813

1,462.801

2.711.919

3.360.679

520.251

293,683

27.555

92.597

30.800,105

18.213.281

18,213.281

86,133,131

45.668,136

4.990.225

1.278.896

10,877.700

2.979,232

193,246

1.147,118

2,998,432

5,320,251

379.917

131.913

26.269

89.659

30.412.858

15.255,278

(862.953,00)

14,392.325

71,740.806

$86.116.080 $12,314 $ 17.051 $104,346.412 $86.133.131

15

FINANCIAL ANALYSIS OF THE INDIVIDUAL FUNDS

As noted earlier, the Police Jury uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Govemmental Funds

The general govemment functions of the Police Jury are reported in the General, and Special Revenue Funds. The focus of the Police Jury's govemmental funds Is to provide infonnation on the near-tenn Inflows, outflows, and balances of spendable resources. Such information Is useful In assessing the Police Jury's annual financing and budgeting requirements.

Overall, the governmental funds of the Police Jury decreased $14,247,301 (27.16%) in fund balance compared to the prior year.

As of the end of the current year, the General Fund, the Police Jury's chief operating fund, reported an ending fund balance of $12.219,121, a decrease of $6,936,799 (36.21%) compared to the prior year.

During 2011, the General Fund transferred $7,314,700 to other govemmental funds to provide funding fbr their operations and to clear deficit fund balances.

The Solid Waste Fund reported an ending fund balance of $9,302,709, a decrease in fund balance of $244,336 (2.55%) as compared with the prior year.

The Road Fund reported an ending fund balance of $3,532,329, a decrease In fund balance of $5,937,382 (69.7%) as compared with the prior year.

The Airport Fund reported an ending fund balance of $8,491,229, a decrease in fund balance of $3,095,512 (26.72%) as compared with the prior year.

Proprietary Fund

The Police Jury's proprietary fund provides the same type of Information found In the govemment-wide financial statements, but In more detail.

At the end of the current fiscal year, the Police Jury's proprietary fund, Eastside Sewer Fund, reported ending net assets of $12,314, a decrease of $4,737 (27.78%) In comparison with the prior year.

GENERAL FUND BUDGETARY HIGHLIGHTS

Formal budgetary integration Is employed as a management control devise during the fiscal year. The budget policy ofthe Police Jury complies v\n'th state law, as amended, and as set forth In Louisiana Revised Statutes Title 39, Chapter 9, Louisiana Local Govemment Budget Act (LSA - R.S. 39:1301 et seq.).

The budget is prepared on the cash basis and is approved by the Police Jurors following a public hearing. The 2011 budget was adopted on December 27, 2010, with total General Fund expenditures and other financing uses totaling $5,643,912, a decrease of $2,422,753 compared to the prior year final budgeted expenditures.

The Police Jury amended the General Fund Budget because:

• Program and genera! revenues were more than originally budgeted. • Program expenses were less than originally budgeted. • Capital outlays were less than originally budgeted. • Full payment of the general obligation bonds was not originally budgeted. • Transfers in fi'om solid waste were less than originally budgeted. • Transfers to the road fund were more than originally budgeted

16

Actual revenues and other financing sources available for expenditure were $68,964 more than originally budgeted. Actual expenditures and other financing uses were $6,686,895 more than the final budgeted amounts.

CAPITAL ASSET ADMINISTRATION

The Police Jury's Investment In capital assets for its govemmental and business-type activities as of December 31, 2011, totaled $252,561,095, net of accumulated depreciation of $183,126,643. leaving a book value of $69,434,452. This Investment In capital assets consists of land, buildings, equipment, sewer plant and improvements, and infrastructure (streets, bridges, lighting, sidewalks and drainage improvements). The total Increase In the Police Jury's Investment In capital assets for the cun'ent year was $32,600,503 about 12.91% In temns of historical cost Depreciation charges for the year totaled $2,524,678 compared to $1,893,743 for the prior year.

Additions to capital assets during 2011 Included $22,413,665 for road improvements.

DEBT ADMINISTRATION

Due to the increase in property tax collected, the Police Jury retired Its $2,198,000 in general obligation bonds fijnding the courthouse renovation during 2011. As a result of the advance payment, the Police Jury was required to pay a two percent premium of $39,280; however, the Police Jury saved $305,747 In future Interest payments.

As of December 31, 2011, the Police Jury's outstanding long-term liabilities consists of capital leases totaled $49,986. The Police Jury's total outstanding long-temn liabilities decreased $2,270,130 (12.64%) during 2011.

In accordance with Louisiana Revised Statute 39:562, the Police Jury' is legally restricted firom Incurring long-term bonded debt In excess of 10% of the assessed value of taxable property In the parish. At December 31, 2011, the statutory limit was $35,850,793. The Police Jury's total debt outstanding at year end was well below this limitation.

The Police Jury has detennined that Its liability fbr fijture closure and post closure costs related to the solid waste landfill (Mundy Landfill) was $4,113,382 as of December 31, 2011 a decrease of $360,208. The cunent period expense decrease was reported against cun'ent period sanitation expense.

Effiective January 1,2008. the Police Jury implemented Govemment Accounting Standanjs Board Statement Number 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45). Prior to that date, the Police Jury recognized the cost of providing postemployment healthcare benefits as an expense when the benefit premiums were due; financing the cost of tiie other postemployment benefit on a pay-as-you-90 basis. GASB 45 requires a systematic, accrual basis measurement and recognition of postemployment healtiicare benefits cost over a period that approximates employees' years of service. The Police Jury has detennined that Its liability for otiier postemployment benefit obligations was $1,597,132 as of December 31, 2011. This liability and the related annual costs are reported only In the govemment-wide financiai statements.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES

The annual budget is developed to provide efficient, effective and economic uses ofthe Police Jury's resources, as well as, a means to accomplish Uie highest priority objectives. Through the budget, the Police Jurors set the direction ofthe Parish, allocate Its resources, and establish Its priorities.

The following economic factors were considered when the budget fbr the fiscal year ended December 31, 2012 was prepared:

• Sales tax revenues were conservatively projected based on prior year revenues • Ad valorem tax revenues were conservatively projected based on prior year revenues. • Other revenues and expenditures are expected to be consistent with the prior year. • General Fund capital outiays budgeted Includes the construction of Phase ll of the Alumni Park and

upgrades to Industrial Park Ball fields and the David B. Means 4-H Exhibition Building. • The Road Fund budget Includes $3,500,000 for road and bridge materials, $6,850,000 for Capital

Outlays, and $1,432,500 In expenditures for drainage Improvements fijnded in part by a FEMA Hazard Mitigation Grant that was budgeted but did not occur In 2011 as anticipated.

17

• Solid Waste Fund has budgeted $2,681,000 In Capital Expenditures which includes completion of compactor site upgrades and the addition of one new compactor site. Major Permit Modifications to tiie Landfill Operating Pennlt for future development digitals radio system and other equipment

• Solid Waste Transfer of Funds In tiie amount of $1,500,000 to the Road Fund fi-om Tipping Fee revenues.

• The Jail Fund budget Includes $400,000 for roof renovations to the Detention Center.

REQUESTS FOR INFORMATION

This financial report is designed to provide our citizens, taxpayers, and Investors with a general overview of the finances of the DeSoto Parish Police Jury and seeks to demonstrate tiie Police Jury's accountability for Uie money it receives. Questions concerning any of Uie infonnation provided In this report or requests for separate reports of the Police Jury's component units or for additional Information should be addressed to Uie DeSoto Parish Police Jury, P. 0. Box 898, Mansfield, Louisiana 71052, or by calling (318) 872-0738.

18

Basic Financial Statements

Government-Wide Financial Statements

DeSoto Parish Police Jury •Mansfield, Louisiana

Statement of Net Assets December 31,2011

ASSETS Cash and cash equl\£ilents Investments Recelwibles (net of allowances for

uncollectibles) Due from other govemments Inventory Capital assets (net)

Total Assets

LIABILITIES Accounts payable Deferred revenue Deposit balances Due to other govemments Landfill post closure liability Compensated absences Other postemployment benefit obligation Long-temi liabilities:

Due within one year Due In more than one year

Total Liabilities

NET ASSETS Inwsted In capital assets -(net of related debt)

Restricted For Airport District Court Jail Roads Sanitation Witness and juror fees

Unrestricted Total Net Assets

Primary Go>«mment Govemmental

Activities

$ 7,654,811 21,499,982

13,231.279 2.650

22,355 69,434.452

111,845,529

3,148.898 164.425

6.500 518,256

1.768.884 257.350

1,597.132

34.068 15,918

7,511.431

69.384,466

8.468.874 37.100

4,272.859 3,532,328 9,302,079

581,743 8,754,649

$104,334,098

Business-Type Activities

$ 494 -

3,462 --

10,175 14.131

1,547 -270 ----

--

1.817

10.175

------

2,139 $ 12,314

Total

$ 7.655,305 21,499,982

13,234,741 2,650

22.355 69,444.627

111.859.659

3.150,445 164.425

6.770 518.256

1.768.884 257.350

1,597,132

34.068 15,918

7.513.247

69,394.641

8.468.874 37.100

4,272,859 3,532,328 9.302,079

581,743 8.756,789

$ 104.346.412

The notes to the financial statements are an integral part of this statement. See the accompanying independent auditor's report.

21

DeSoto Parish Police Jury miansfield, Louisiana

Statement of Activities Forthe Year Ended December 31,2011

FVogram Revenues

Fu nctions/Prog ram s Primary Government:

Governmental Activit ies

CBeneral government Legislative Judicial Bections Rnance and administration ahe r

Rjbllc safety Rjblk: w orks Sanitation Culture and recreatbn Health and welfare (Community devetopment Economic development Trans portatton Animal Control Interest on tong-term debt

Total Governmental Activities Business-Type Activit ies

Eastside sew er Total Primary Government

B(p enses Charges for

Servfces Operating Grant and Contributtons

Capital Grants & Contrbutions

$ 415.127 2.219,894

71.529 1,285.784 1.399.197 1.193.238

12.636,561 2.801,479

307,813 1.462,801 2,711,919 3.360,679

520,251 293,683

92,597 30,772.552

27.555 $ 30.800.107

$ - 3 932.803

-307.170

--

179.942 1.808.750

--70

-193,254

13,515 -

3.435.504

12,818 $3,448,322 3

1

----

258,268 36.981

--

997.256 2.340,946 3,048,786

202,846 1.538

_ 6,886.621

> 6,886.621

301.479

2.788.388

3.089.867

3.089,867 General Revenues: Ad valorem taxes Sales taxes Severance taxes Tourism taxes Video Raker Investment earnings State revenue sharing Gain on disposal of capital assets Rentals, leases and royalties Other miscellaneous

Transfers: Interfund

Total general revenues and transfer; Changes In Net Assets

Net assets - beginning Net assets - ending

22

DeSoto Parish Police Jury IVIansfield, Louisiana

Statement of Activities For the Year Ended December 31,2011

Net (Expense) Revenue and Changes in Net Assets FYimary


$ (415,127) (1.287,091)

(71.529) (677,135)

(1,399,197) (934,970)

(9,631.250) (992.729) (307.813) (465.545) (370.903) (311,893) (124.151) (278,630) (92,597)

(17.360,560)

(17,360,560)

8,596,679 20.180.706

1,347.644 160.736 164,685

1,198.966 60,225

405,973 3.211,946

261.018

(10.000) 35.578.578 18.218,018 86.116.080

$ 104,334.098

Government

Business-Type Activities

$

$

------------

--

(14.737) (14.737) -

---------

10,000 10,000 (4.737) 17,051 12.314

Total

$ (415,127) (1.287,091)

(71.529) (677.135)

(1,399,197) (934,970)

(9,631.250) (992.729) (307.813) (465,545) (370.903) (311.893) (124,151) (278,630) (92.597)

(17.360.560)

(14.737) (17.375.297)

8.596.679 20,180.706

1,347.644 160.736 164,685

1.198,966 60,225

405.973 3,211.946

261.018

_ 35.588,579 18,213.281 86.133,131

$104,346,412

The notes to the financial statements are an integral part of this statement. See the accompanying Independent auditor's report.

23

Fund Financial Statements

DeSoto Parish Police Jury •Mansfield, Louisiana

Balance Sheet Govemment Funds December 31,2011

ASSETS Cash and cash equi\alents Investments Recei\ables (net of allowance for uncollectibles) Inventory Due flôm other govemments Due fi^m other ftjnds

Total assets

LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Due to other govemments Deposits Defened revenues

Total Liabilities

Fund balances: Non-spendable:

Inventory Restricted for

Airport Judicial Public safety Roads Sanitation Witness and juror fees

Assigned to: Animal control

Unassigned Total fund balances

General Fund

$ 1.376.804 7,159,765 4.130,604

-2.650

125,647 $12,795,472

$ 391.788 -

4 6.500

178.060 576.352

-

------

-12.219.120 12,219,120

Solid Waste

$

J=

$

Fund

174.744 6.348.937 3,154,321

--

310,952 9,988.954

532.174 51.882

--

102.819 686,875

-

----

9,302,079 -

-. -

9,302.079

Major Funds

$

J=

$

Road Fund

602.969 10.674

3,488.257 --

1.074,273 5.176.174

1.554.234 ---

89.612 1.643.846

-

---

3,532,328 --

' --

3,532,328

TOTAL LIABILITIES AND FUND BALANCES $12,795.472 $ 9.988.954 $ 5.176.174

25


Balance Sheet Govemment Funds December 31,2011

Airport Fund

$ 861,487 7,980.604

86,923 22,355

-7.049

$ 8.958.418

Sales Tax Fund

$ 3.020 -

2,093.105 ---

$ 2,096.125

aher Govemmental

Funds

$ 4.635.788 -

278,068 --

207,301 $ 5.121,157

Total Govemmental

Funds

$ 7,654,811 21,499,982 13,231.279

22,355 2,650

1,725,223 $44,136,300

$ 467,189 ----

467,189

$ 20.094 1,557,778

518,253 --

2,096.125

183.418 116,563

--

164.424 463,405

$ 3.148.898 1,725.223

518,257 6.500

534.915 5.933.792

22,355 - - 22,355

8,468,874

8.491,229

$ 8.958,418

-

-

$ 2.096,125

37.100 4.295,273

581.743

143,818 (400,182)

4,657,752

$5,121,157

8,468,874 37,100

4,295,273 3,532.328 9.302.079

581,743

143,818 11,818.938 38.202.508

$44,136,300

The notes to the financial statements are an integral part of this statement. See the accompanying independent auditor's report.

26


Reconciliation of the Balance Sheet of Government Funds To the Statement of Net Assets

December 31,2011

Total Fund Balance, Governmental Funds $ 38.202,508

Amounts reported for govemmental activities in ttie Statementof Net Assets are different because:

Capital assets used in govemmentalactivities are not current financial resources and. ttierefore, are not reported In this fund financial statement but are reported In tiie govemmental activities ofthe Statementof Net Assets

Cost of capital assets $ 252,561,095 Less -Accumulated depreciation (183,126,643) 69,434,452

Certain deferred revenues are reported in the govemmental funds but notin ttie Statementof NetAssets 370,490

Long-term liabilities are not due and payable in the current period and are not Included in ttie fund financial stetements but are Included in ttie govemmentel activities ofthe Stetementof NetAssets

Capital leases (49,986) Landfill post closure liability (1.768,884) Other post em ployment benefit obligation (1,597,132) Compensated absences (257,350) (3.673,352)

NetAssets of Governmental Activities in the Statementof Net Assets $ 104,334.098

The notes to the financial statements are an Integral part of this statement. See the accompanying independent auditor's report.

27

OQ

c ^

^ ^ g 0) (0

^ 1 O 3 0 . O

.= -" •Ss 2 | l | (oS 0 ) D

(A O a> M O)

n CO

an

dC

h

1 F

unds

ce

mbe

r

8|S

iditu

i rn

me

nded

o a>uj

U l O a> .. >-1 1 c r 0) o > ul ©

a: (^ o 4-«

c

g tf

l i TJ

Ill

D - T J c

CO

° 1

slips to o r*-" o -^

c o o ^ -

CM

O)

co'

<0

CM • CD •

O

IS CsT

to in

• CO

c o o i n ^ e o ^ c o t o c o ^ i o C M t n C M f l O O T - 0 ( D ^ < D ' -' - ^ ^ CM (D CO ^ _ lO_ 0> 0> PO O

<nooo^cc> e o f C o d ^ ' o ' - -* ^ t O t O O C M C O O T T - h - t O

CM O ^ CM ^ CM CM" T-" ^ " co" CM"

m CO * -CO O 5 I D 00 O co" CM' r-" T— CO CO

s S^^'se

'<- CO U) CM •^f T -^ ' i r i • . - CO

^

i n 00

— to ' ^ CO o

s t o o>

. ii°l -<-' -(f* CM'

s g

S I

s to

il o

™ _ 3

O N ; CM CM ^ CM CO CM 00

00 CO r*-CM" CO'

5S IO CM oo"^ " r*. OJ oo OJ C M ' t o '

CO T - t o CM 00 CO t - OJ o>

o> to" •^" ^ CO t o

CM o r*-• * O CD CM h - eo

o t o CO o CM CO OTCM"

^ CM"

m o CO cn

S (3J

O ^ CM lo r- m 1 ^ • O CO oo' in O GO oo

eg CO co"

s CM o 00

r oo"

8

Eo CD_ eo"

CM'

. s^s co' o -vt

s CO

o> cn •<«• CO

111.

25

, 16

4,

96,

s g

CO CO o o • - a> o CO

• CO ^ CO f -

§£-<ES CM"

s

^ m

CO

to <0

£ t ^ »t-o •c CO CL

2

o a. £ t o

s 0 ) " D 0)

c

c

a> (D

1 E 0)

ro * m

1

CD

o • * - <

CO Q)

o c 0)

. c H

3 CQ

1 C

Q . 0 O

OJ c Ss c ro 1 ro

1

S. c «

g g " « E o)? O a m E f O O — 3

E 2

T3 to CD O < OT 03 F

O = c

B c

I - ffi CO

^ IE 5 | £

o

C 0 d c M C 0 l O ' C » O ' - C O i n T - ( D - * C 0 l O

i § CM'

fe CM

^" §§ fe

"O r -r -

5 CM'

CO

CM s -s CM"

§ t o '

1 CM" t o

o i n t o \ n ^ 1 ^

o o 1 ^ CM CM. ^ CM

f o ^ c CO CO

_,_ i n 1 ^ • *

r-" CO CO - r T -

__ O O ts. o o r 00 CO v~ V— f— CJ O ^ CO o o -* OJ'OJ'

•.—«•

S-1 ^ T -

o CM ' d '

__ OJ r^ cn o CM oo r*-"cn

S5 • * " e M ^ lO

j] 00

m CM' c CM oo" t o

5 • lO"

,409

CO

00

. .^§1

1.03

4,

2,54

3,

3,04

8

CO to oo 1 -co r^ co" in ' OJ o CM T -

f ^ i n ! o

Is iCO

oo CM

OJ i n (O

00 ^

o o o o

s

Q Q CO r-" o CO

00 ^ CM CM l^. P CO ^— CO cn OJ t o T - " C M "

CM i n r-r-' m t o

i to

8 C rt To CD •o c 3

u. c •«-

tf) o

=53 S t 8 O-O « a ®

o g g gui 0 5 g-o!5 CO 2 Ul O Q>

5 " >" Q g o

C 1 . d) o I " c d>

E I S

I

I-T3 CO g

CO OT

• t n r-" CM CM

1 ^ to

I to s

T3 -O

£

M

B li-o OT

5"-

1^ o • * •

co" ^ ' CM ^ •«t CM

-*"

S CO CO

CO • *

CO CO 5

CM* • * "

0 0 cn ^ 00 u> -«t

00 0 t o

r K (O • *

CM

t o i n cn 0 CO"

1

_„^ CJ * -» - • * 10 r i 10" CO <n oc 0 If co" »-

cn CM CM

-OJ • v 00

«

t n « to" eo

• s 1 " 0

h -00 r -

r-. 10 Cf

s

^^ CO 00 eo r " CO • ^

-*"

0 0 0 0 ' 0 10 00"

CO T -CO '<-CO h -h-.'OJ CO t o t n • * 10" t n

00 CM CO CM'

cr 10 t o '

§ s CM t n r*-" CM" CO

0

i n

^ 0 10 r-

s (D 10" r-CH

_ 0 0 0 0 0 0

0 00 CD_

0 0 0

s I f ]

^"

CO 10 CO T -CO TT

"1 ' ^ t n

O i h -p S c cn

CO

00 r ; g g CM g

t o 00 CM cn 10 cn • 0 ' 10 r- ' r - ' O J ' 00"

s r; *^ IS s 0 CO CM OJ CD ^

IS ' rt rt C O O

CM t o

,893

T -

rt

OJ

• S

i o to o cn O CD

t n

CM 1 —

Csl |CO 1 ^

^^ rt r-rt cn" CD

o o t^ o o r T - h - T -t^ ^ ' o" tn T- 10

CO CO

rt CN

^ r ' CD

iCO t£J

^^ t o CO O J t -r - OJ co'm

S ^ co'cn " — ' T -

0 CM t -

Oi CM CM T -

c (D

E

*s CO CO

s tz 0 • c ro Q .

2

t f 0 Q .

2 t o

2 0 ) T 3 0) C

c ro (0 ro i3

(D

E 0

ro 4 - 1

w

1 c

I P CD

0 4 - >

CO

0 c

3

ro

1 j 3

Q.a> (U CM

1 D> C

'>. c ro Q .

ro IS

o ^ « ^

V .a __

•a

C CD

u to = 1 .-2 3 ^ ^ !D 'c *i ._ _ ^

to « C O g to ,£ 3 -9 . to i i_ u_

" o- S S i c c

^ £


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

Statement of Activit ies For the Year Ended December 31 , 2011

NetChange in Fund Balances - Governmental Funds $(14,247,299)

Amounts reported fbr govemmental activities In the Statementof Activities are diffisrent because:

Govemmental Funds report capital outlays as expenditures because such outlays use cunent financial resources. However, forgo\«rnmental activities those capital outlays are reported in the Statementof Net Assets and are allocated over their useful lives In the Statement of Activities. This Is the amount by which capital outlays exceed depreciation In the period.

Capital outlays $ 32,600,502 Less- Depreciation expense (2,524,678) 30,075,824

In the statementof activities, only the gainon the sale of tiie Industi'lal park land and other assets Is reported, whereas In the govemmental funds, tiie proceeds from the sale increase financial resources. Thus the change In net assets differs from tiie change in fund balance byttie cost of tiie assets sold. (24,205)

Tlie issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while repayment of principle of long-tenn debt consumes tiie current financial resources of governmental funds. Neither transaction, howe\«r. has any effect on net assets and is not reported in tiie Statementof Activities.

Principal repayment 2,270,130

Because of tiie timing of actual receipt some revenues are not considered "avallable"to pay cun'ent obligations and are not reported In tiie governmental ftjnds. They are, however, reported In ttie Statement pfActlNities

Increase In deferred revenues 219,721

Interest on long-tenn debt in the Statement of Activities differs from the amount reported in the govemmental funds because interest is recognized as an expenditure In ttie funds when It is due and thus requires tiie use of current financial resources. In the Statementof Activities, interest expense is recognized as tiie Interest accmes, regardless of when It is due.

Decrease in accrued interest on capital leases and bonds payable 27,558

Certain Items reported in tiie Statementof Activities do not require ttie use of current financial resources and ttierefore are not reported as expenditures In the govemmental funds

Decrease in liability for com pensated absences 7,040 Increase in liabllityfbr otiier postemployment benefits (470,959) Decrease in llabilityfor landfill postclosure expense 360.208

Change in Met Assets of Governmental Activities $ 18.218018

The notes to ttie financial statements are an Integral part of this statement. See the accompanying independent auditor's report.

30

Proprietary Fund


Statement of Net Assets Proprietary Fund

December 31,2011

Business-Type Activities - Enterprise

ASSETS Current Assets:

Cash and cash equivalents Receivables (net of allowances for uncollectibles)

Total Cument Assets

Non-Current Assets: Capital assets (net of accumulated depreciation)

Total Assets

Fund

Eastside Sewer Fund

$ 494 3,462 3,956

10,175 14,131

LIABILITIES Cunent Liabilities:

Accounts payable 1.547 Total Current Liabilities 1,547

Non-Current Liabilities: Customer deposits 270

Total Liabilities

NET ASSETS Invested in capital assets, net of related debt Unrestricted

Total Net Assets

1,817

10,175 2,139

$ 12.314

The notes to tiie financial statements are an integral part of tiiis statement. See the accompanying independent auditor's report

32


Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Fund

For the Year Ended December 31,2011

Business-Type Activities - Enterprise Fund

OPERATING REVENUES Charges fbr sendees:

Eastside Sewer Fund

$ 12,818

OPERATING EXPENSES General and administrative Professional fees Materials, supplies, and repairs Utilities and communications Depreciation expense Total Operating Expenses

23,400 495

13 3,647

27,555

OPERATING LOSS

Transfers In

CHANGE IN NET ASSETS

TOTAL NETASSETS - Beginning TOTAL NET ASSETS - Ending

(14.737)

10.000

(4,737)

17.051 $ 12.314

The notes to the financial statements are an Integral part of this statement. See the accompanying independent auditor's report.

33


Statement of Cash Flows Proprietary Fund

For the Year Ended December 31,2011

Business-Type Activities - Enterprise Fund

Eastside Sewer Fund

CASH FLOWS FROM OPERATING ACTIVITIES: Cash received fiom customers and users Cash paid to suppliers for goods and services

Net Cash Used by Operating Activities

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES: Transfers firom other fijnds

Net Cash Provided by Non-Capital Financing Activities

NET INCREASE IN CASH AND CASH EQUIVALENTS Cash and Cash Equivalents, Beginning ofYear CASH AND CASH EQUIVALENTS, END OF YEAR

$ 17.439 (26.160) (8.721)

10,000 10,000

1,279 (786)

$ 494

Reconciliation of loss firom operations to net cash used by Operating Activities: Loss fcom operations Adjustments:

(Increase)Decrease in accounts receivable Increase(Decrease) in accounts payable Total Adjustments

Net Cash Used by Operating Activities

Noncash Investing, Capital, and Financial Activities

$ (14.737)

4,621 1.395

6.015

$ (8.722)

None

The notes to tiie financial statements are an Integral part of tills statement. See the accompanying independent auditor's report.

34

Notes to the Financial Statements


Notes to the Financial Statements December 31,2011

Introduction

DeSoto Parish, located in Northwest Louisiana, was established by Act 88 of 1843. The Parish has a population of approximately 26,383. The DeSoto Parish Police Jury (hereinafter refened to as "Police Jury") is the governing authority for DeSoto Parish and is a political subdivision of the State of Louisiana. The Police Jury is govemed by eleven compensated jurors representing the various districts within the parish. The jurors serve four-year terms which expire in January, 2012.

Louisiana Revised Statute 33:1236 gives the Police Jury various powers in regulating and directing the affairs ofthe parish and its inhabitants. The more notable of those are the power to make regulations for their own government, to regulate the constmction and maintenance of roads and bridges, to regulate the construction and maintenance of drainage systems, to regulate the sale of alcoholic beverages, and to provide for the health and welfare of the poor, disadvantaged, and unemployed of the parish. Funding to accomplish these tasks is provided by ad valorem taxes, sales and use taxes, beer and alcoholic beverage permits, state revenue sharing, and various other state and federal grants.

The Police Jury's proprietary fund applies Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989. unless the pronouncements conflict with or contradict GASB pronouncements, In which case GASB prevails. GAAP as applicable to govemments also confonns to the requirements of Louisiana R.S. 24:517 and the guides set forth in the Louisiana Municipal Audit and Accounting Guide and to the industry guide. Audits of State and Local Govemment Units, published by the American Institute of Certified Public Accountants.

GASB Statement No. 14, The Reporting Entity, established criteria for determining the governmental reporting entity and component units that should be included within the reporting entity. Under the provisions of this Statement, the Police Jury is considered a primary govemment since It is a special purpose government that has a separately elected goveming body, is legally separate, and is fiscally independent of other state or local govemments. As used in GASB Statement No. 14, fiscally Independent means that the Police Jury may, without the approval or consent of another govemmental entity, determine or modify its own budget, levy Its own taxes or set rates or charges, or Issue bonded debt.

1. Summary of Significant Accounting Policies

The DeSoto Parish Police Jury's financial statements are prepared in confonnity with generally accepted accounting principles (GAAP). The Govemmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local govemments through its pronouncements (Statements and interpretations). The accompanying basic financial statements have been prepared in confonnity with GASB Statement 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Govemments, Issued In June 1999. The more significant accounting policies established In GAAP and used by the DeSoto Parish Police Jury are discussed below.

A. Reporting Entity

As the goveming authority of the parish, for reporting purposes, the DeSoto Parish Police Jury Is the financial reporting entity for DeSoto Parish. The financial reporting entity consists of (a) the primary govemment (Police Jury), (b) organizations for which the primary government Is financially accountable and (c) other organizations for which the nature and significance of their relationship with the Police Jury is such that exclusion vtfould cause the reporting entity's financial statements to be misleading or Incomplete.

36



1. Summary of Significant Accounting Policies (continued)

A. Reporting Entity (continued)

Govemmental Accounting Standards Board (GASB) Statement No. 14 established criteria for determining which component units should be considered part of the DeSoto Parish Police Jury for financial reporting purposes. The basic criterion for including a potential component unit within the reporting entity is financial accountability. The GASB has set forth criteria to be considered in determining financial accountability.

These criteria include:

1. Appointing a voting majority of an organization's governing body, and:

a. The ability of the Police Jury to impose its will on that organization and/or b. The potential for the organization to provide specific financial benefits to or Impose specific financial

burdens on the Police Jury.

2. Organizations for which the Police Jury does not appoint a voting majority but are fiscally dependent on the Police Jury.

3. Organizations for which the reporting entity financial statements would be misleading If data of the organization is not included because of the nature of significance of the relationship

Based on the previous criteria, the Police Jury has detennined that the following component units are part of the reporting entity:

Component Unit

DeSoto Parish: Library Tourist Ckammission Cleric of Court Communications District Emergency Medical Services Fire Districts:

No. 1 No. 2 No. 3 No. 5 No. 8 No. 9

Fiscal Year End

December 31 December 31

June 30 December 31

June 30

December 31 December 31 December 31 Decemt>er 31 Decemlser 31 Decemk)er 31

Criteria Used

1. 2 and 3 1,2 and 3 2 and 3 1 and 3 1 and 3

1 and 3 1 and 3 1 and 3 l a n d 3 1 and 3 1 and 3

Complete financial statements of the individual component units may be obtained from their respective administration offices or from the DeSoto Parish Police Jury. Mansfield, Louisiana.

The Police Jury has chosen to issue financial statements of the primary government (Policy Jury) only; therefore, none of the previously listed component units are included in the accompanying financial statements.

37




A. Reporting Entity (continued)

GASB Statement No. 14 provides for the issuance of primary govemment financial statements that are separate from those of the reporting entity. However, the primary govemment's (Police Jury) financial statements are not a substitute for the reporting entity's financial statements. The accompanying primary govemment financial statements have been prepared in conformity with generally accepted accounting principles as applied to governmental units except for the exclusion of component units as discussed above.

The financial statements consist of alt funds, organizations, institutions, agencies, departments, and offices that comprise the Police Jury's legal entity and for which the Police Jury maintains the accounting records. These financial statements include the activities of the DeSoto Parish Airport, the DeSoto Parish Community Services. Eastside Sewer District, the Mundy Landfill, and the DeSoto Parish Animal Shelter.

The financial statements do not include financial data for the Police Jury's legally separate component units, which accounting principles generally accepted in the United States of America require to be reported with the financial data of the DeSoto Parish Police Jury's primary government. As a result, the primary govemment financial statements do not purport to, and do not, present fairiy the financial position of the reporting entity of the DeSoto Parish Police Jury and the changes in financial position in conformity with accounting principles generally accepted in the United States of America, but rather are intended to reflect only the financial statements of the primary government (Police Jury).

B. Basis of Presentation

The Police Jury's primary Govemment Basic Financial Statements have been prepared in conformity with govemmental accounting principles generally accepted in the United States of America. The primary Government Basic Financial Statements consist of Govemment-wide Financial Statements, including a Statement of Net Assets and a Statement of Activities, and Fund Financial Statements, which provide a more detailed level of financial infonnation. Both the Govemment-wide and the Fund Financial Statements categorize activities as either govemmental activities or business-type activities.

The Police Jury used funds to maintain its financial records during the year. Each fund is accounted for by a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance, revenues, and expenditures. The individual funds account for the governmental resources allocated to them for the purpose of carrying on specific activities in accordance with laws, regulations, or other restrictions. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions relating to certain govemment functions or activities.

C. Fund Accounting

The funds of the Police Jury are classified into two categories: governmental and proprietary. The Police Jury uses governmental funds to account for all or most of the Police Jury's general activities, including the collection and disbursement of specifically or legally restricted monies (special revenue funds). These funds focus on the sources, uses, and balances of current financial resources. Expendable assets are assigned to the various govemmental funds according to the purposes for which they may be used. Current liabilities are assigned to the fund from which they will be paid. The difference between the govemmental fund's assets and liabilities is reported as fund balance. In general, fund balance represents the accumulated expendable resources which may be used to finance future period programs or operations.

38




C. Fund Accounting (continued)

The following are the Police Jury's govemmental funds;

General Fund - The General Fund is the primary operating fund of the DeSoto Parish Police Jury. All financial resources, except those required to be accounted for in another fund, are accounted for in the General Fund.

Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue resources (other than special assessments, expendable trusts or major capital projects) that are iegaliy restricted to expenditure for specific purposes.

Proprietary funds are used to account for ongoing organizations and activities that are similar to those often found in the private sector. The measurement focus is based upon determination of net income, financial position, and cash flovtfs. The following is the Police Jury's proprietary fund type:

Enterprise Funds - Enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises- where the intent of the goveming body is that costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the goveming body has decided that the periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.

D. Measurement Focus and Basis of Accounting

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

Govemment-Wide Financial Statements (GWFS)

The Statement of Net Assets and the Statement of Activities report infomiation on all the financial activities of the Police Jury. Individual funds are not displayed, but the statements distinguish governmental activities, which are nonnally supported by taxes and intergovernmental revenues, from business-type activities, which rely to a significant extent on fees and charges for support. The effect of most interfund activity is eliminated from these financial statements.

Infonnation contained in these statements reflects the "economic resources" measurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange or exchange-like transactions are recognized when the exchange occurs (regardless of when cash is received or disbursed). Revenues, expenses, gains, losses, assets and liabilities resulting from non-exchange transactions are recognized in accordance with the requirements of GASB Statement No. 33, Accounting and Financial Reporting for Non-exchange Transactions. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

39




D. Measurement Focus and Basis of Accounting (continued)

Govemment-Wide Financial Statements (GWFS) (continued)

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment of Police Jury activities is offset by program revenues. Direct expenses are those that are cleariy identifiable with a specific function or segment. A function is an assembly of similar activities and may include portions of a fund or summarize more than one fund to capture the expenses and program revenues associated with a distinct functional activity. The Police Jury does not allocate indirect expenses to functions in the Statement of Activities. Program revenues included in the Statement of Activities are (1) derived directly from charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function. (2) operating grants and contributions, and (3) capital grants and contributions. For identifying to which function program revenue pertains, the determining factor for charges for services is which function generates the revenue. For grants and contributions, the detennining factor is to which functions the revenues are restricted. Revenues not classified as program revenues are presented as general revenues, which include ad valorem taxes, sales taxes, franchise taxes, severance taxes, beer taxes, state revenue sharing, rents and re}yalties, interest, and other unrestricted revenues. Program revenues reduce the cost of the function to be financed from the Police Jury's general revenues.

Fund Financial Statements (FFS)

The fund financial statements report financial information by major and nonmajor funds. The emphasis of fund financial statements is on major govemmental and enterprise funds, each of which is displayed in a separate column. Nonmajor funds are aggregated and presented in a single column.

A fund is considered major if it is the primary operating fund of the Police Jury or if it meets the following criteria:

a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least ten percent (10%) of the corresponding total for all funds of that category or type.

b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental or enterprise fund are at least five percent (5%) of the corresponding total for all govemment and enterprise funds combined.

c. The Police Jury's management believes that the fund is particutariy important to the financial statement users.

40



Summary of Significant Accounting Policies (continued)


Fund Financial Statements (FFS) (continued)

The Police Jury's major funds are described as follows:

Major governmental funds:

General Fund - The General Fund is the primary operating fund of the Police Jury. It accounts for all activities except those required to be accounted for in other funds.

Solid Waste Fund - The Solid Waste Fund is a special revenue fund used to account for the construction and operation of the parish solid waste collection and disposal facilities. Financing is provided by ad valorem tax, a sales and use tax, and fees for services.

Road Fund - The Road Fund is a special revenue fund used to account for the operations and maintenance of parish highways, streets, and bridges. Financing is provided by the State of Louisiana Parish Transportatron Fund, ad valorem taxes, sales taxes, and state revenue sharing funds.

Airport Fund - The Airport Fund is a special revenue fund used to account for the operation and maintenance of a parish airport facility. Financtng is primarily provided by rents and royalties, federal and state grants, fees, and interest earned on investments

Sales Tax Fund - The Sales Tax Fund accounts for the collection of the one percent sales and use tax. Expenditures of the fund are limited to expenses necessary and reasonable for the collection and administration of the sales tax program. After paying these necessary expenses, alt remaining sales tax revenues are disbursed to the Road Fund, the Jail Fund, the Solid Waste Fund, and the DeSoto Parish Library in accordance with the percentages established in the tax proposition.

All other govemmental funds are considered non-major funds.

Major Business-Type Funds:

Proprietary Fund - The Enterprise Fund (Eastside Sewer Fund) accounts for the operations of the Police Jury's sewer system. Business-type funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing goods and services in connection vkflth the fund's ongoing operation. Financing of the Enterprise Fund is provided by user fees and transfers from the General Fund.

Govemmental Fund Financial Statements - The amounts reflected in the Govemmental Fund Financial Statements are accounted for using the "current financial resources" measurement focus. With this measurement focus, only current assets and cun'ent liabilities are generally included on the balance sheet. When the "cun'ent financial resources" measurement focus is used, amounts recorded as assets exclude capital assets and the acquisition of capital assets is treated as expenditure. Furthemiore, long-tenn debts are excluded from amounts reported as liabilities. Proceeds from issuing long-term debt are reported as an other financing source and repayment of long-temn debt is reported as an expenditure. The statement of revenues, expenditures, and changes in fund balance reports on the sources (i.e.. revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approach is then reconciled, through adjustment, to a government-wide view ofthe Police Jury's operations.

41


Notes to the Financial Statements December 31, 2011




The amounts reflected in the Govemmental Fund Financial Statements use the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The Police Jury considers all revenues available if they are collected within 60 days after the fiscal year end. Expenditures are recorded when the related fund liability is incurred; however, principle and interest on general obligation long-temn debt is recognized when due.

The governmental funds use the following practices in recording revenues and expenditures:

Federal and state entitlements (which include state revenue sharing) are recorded as unrestricted grants-in-aid when available and measurable. Revenue from federal and state grants is recognized when all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when resources are required to be used or the year when use is first pemnitted; matching requirements, in which the Parish must provide local resources to be used for a specified purpose; and expenditure requirements, in which the resources are provided to the Police Jury on a reimbursement basis.

Ad valorem taxes and the related state revenue sharing are recorded in the year the taxes are assessed. Ad valorem taxes are assessed on a calendar year basis and attach as an enforceable lien and become due and payable on the date the tax rolls are filed with the recorder of mortgages. Louisiana Revised Statute 47:1993 requires that the tax roll be filed on or before November 15 of each year Ad valorem taxes become delinquent if not paid by December 31. The taxes are generally collected in December of the current year and January and Febmary of the ensuing year.

Sales tax revenues are recorded in the period in which the underlying exchange has occun'ed.

Gaming tax revenues are recorded in the period during which the exchange transactions on which the tax is imposed occur.

Fines, forfeitures, fees, and court costs are recognized in the period they are collected by the DeSoto Parish Sheriff.

Royalties are recognized in the period the underiying exchange transaction occurs.

Interest earnings on deposits are recorded when earned and interest eamings on deposits with financial institutions are recorded when credited to the Police Jury.

Those revenues susceptible to accrual are sales taxes, property taxes, franchise taxes, grants, oil and gas royalties, interest revenue and charges for services. Substantially all other revenues, including rents, fines, pemnits, and license revenues are not susceptible to accrual because generally they are not measurable until received in cash.

Salaries and related benefits are recorded when employee services are provided.

Commitments under construction contracts are recognized as expenditures when earned by the contractor.

42






Purchases of various operating supplies are recorded as expenditures in the accounting period in which they are purchased.

Substantially all other expenditures are recognized, as expenditures when the related fund liability has been incurred.

Transfers between funds that are not expected to be repaid, sales of assets, proceeds from the sale of bonds, capitalized leases, compensation for loss of assets, and the proceeds from accmed interest on the sale of bonds are accounted for as other financing sources (uses) in the Statement of Revenues, Expenditures, and Changes in Fund Balances. These other financing sources (uses) are recognized at the time the underiying events occur.

Proprietary Fund Financial Statements - The financial statements of the proprietary fund are reported using the "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. The amounts reflected in the Proprietary Fund Financial Statements use the accmal basis of accounting. All assets and liabilities (whether current or non-cun-ent) associated with their activities are reported.

E. Budgets

The Policy Jury uses the following budget practices:

Budgets for most govemmental funds are adopted annually on the cash basis of accounting. Preliminary budgets for the ensuing year are prepared by the treasurer during October of each year. During the month of November, the finance committee reviews the proposed budgets and makes changes as it deems appropriate. The availability of the proposed budgets for public inspection and the date of the public hearing on the budgets are then advertised in the offlcial journal. Usually during its regular December meeting, the Police Jury holds a public hearing on the proposed budgets in order to receive comments from the public and other interested parties. Changes are made to the proposed budgets based on the public hearing and the desires of the Police Jury as a whole. The budgets are usually adopted during the regular December meeting and notice is published in the official journal.

The treasurer presents necessary budget amendments to the Police Jury during the year when, in her judgment, actual operations differ materially from those anticipated in the original budgets. During a regular or special meeting, the Police jury reviews the proposed amendments, makes changes as it feels necessary, and fomnally adopts the amendments. The adoption of the amendments is included in the Police Jury minutes published in the official joumal.

Budget comparison schedules included in the accompanying financial statements present the original adopted budgets and the final amended budgets.

The Police Jury exercises budgetary control at the functional level. Within functional levels, the treasurer has the authority to make amendments as necessary. Unexpended appropriations lapse at year-end and must be reappropriated in the next year's budget to be expended. The Police Jury does not utilize encumbrance accounting in its budget practices.

43




F. Cash and Cash Equivalents and Investments

Cash and cash equivalents include cash on hand, amounts in demand deposits, interest bearing demand deposits, time deposits (certificates of deposit), and short-tenn, highly liquid investments with original maturities of ninety (90) days or less when purchased. Under state law, the Police Jury may deposit funds with a fiscal agent organized under the laws of Louisiana, the laws of any other state in the union, or the laws of the United States. The Police Jury may invest in United States bonds, treasury notes and bills, govemment backed agency securities, or certificates and time deposits of state banks organized under Louisiana law and national banks having principal offices in Louisiana. In addition, local Louisiana govemments are authorized to invest in the Louisiana Asset Management Pool (U\MP), a nonprofit corporation formed by the State Treasurer and organized under the laws of the State of Louisiana, which operates a local govemment investment pool.

The Police Jury has adopted an investment policy limiting investments to;

• Direct United States Treasury obligations • Bonds, debentures, notes, or other evidence of indebtedness issued or guaranteed by federal agencies

provided that such obligations are backed by the full faith and credit of the United States of America. • Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by U. S. government

instmmentalities. which are federally sponsored. • Direct security repurchase agreements of any federal book entry. • Time certificates of deposit of any bank domiciled or having a branch offlce in the state of Louisiana, savings

accounts or shares of savings and loan associations and savings banks as defined by R.S. 6:703(16) or (17), or share accounts and share certificate accounts of federally or state<hartered credit unions issuing time certificates of deposit.

• Mutual or trust fund institutions which are registered with the Securities and Exchange Commission under the Securities Act of 1933 and the Investment Act of 1940. and which have underiying investments consisting solely of and limited to securities of the United States govemment or its agencies.

• Guaranteed investment contracts issued by a bank, financial institution, insurance company, or other entity having one of the two highest short-temn rating categories of either Standard & Poor's Corporation or Moody's Investors Service.

• Investment grade (A-1/P-1) commercial paper of domestic United States corporations.

Investments are stated at cost, which approximates martlet value. The Police Jury's investments comply with Louisiana Statutes (LSA R.S. 33:2955).

44



Summary of Significant Accounting Policies (continued)

G. Receivables

In the govemment-wide financiai statements, receivables consist of all revenues eamed at year-end and not yet received. Major receivables for the governmental activities include ad valorem taxes, sales and use taxes, severance taxes, fees for services, and federal grant revenues. Business-type activities report customer's sewer sen ice charges as its major receivables. The Police Jury uses the allowance method to account for bad debts for 3d valorem taxes, sanitation (tipping) fees and sewer service charges. Under this method, an estimate is made of the expected bad debts included in the year-end receivables. The provision for bad debts is recorded as a current expenditure with a corresponding increase to the allowance for doubtful accounts. Accounts receivable are reported in the financial statements net of the allowance account. Subsequent charge-offs or recoveries of specific accounts respectively decrease or increase the altowance account.

H. Prepaid Expenses

Payments made to vendors for services that will benefit periods beyond December 31, 2011 are recorded as prepaid expenses.

I. Interfund Transactions

Resources belonging to particular funds are commonly shared with other funds that need access to additional resources. When resources are provided without the expectation of repayment, the transaction is reported as a transfer and is treated as a source of income by the recipient and as an expenditure or expense by the provider. If repayment is expected, these receivables and payables are classified as "Due from other funds" or "Due to other funds".

Nonrecurring or non-routine permanent transfers of equity are reported as residual equity transfers.

In preparing the govemment-wide financial statements, transfers are eliminated to present net transfers for govemmental activities and business-type activities. In addition, interfund receivables and payables are eliminated to present a net balance for each type of activity.

J. Inventory

Inventory consists of fuel located at the airport. The fuel inventory is valued at cost using the first in/first out (FIFO) method. The costs of the fuel inventory are recorded as expenditures when consumed rather than when purchased in both government-wide and fund financial statements

K. Capital Assets

Capital assets which include property, plant, equipment, worths of art and historical treasures, and infrastmcture assets (consisting of roads, bridges, curt)s and gutters, streets and sidewalks, drainage systems, lighting systems, and similar items) are reported in the applicable govemmental or business-type activities columns in the govemment-wide financial statements and in the fund financial statements for proprietary funds. All capital assets, other than land, are depreciated using the straight-line method over their estimated useful lives, ranging from 5 to 50 years depending upon the expected durability of the particular asset Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of net assets.

45




K. Capital Assets (continued)

All purchased and constmcted capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets are valued at their estimated fair maricet value on the date received. The Police Jury has adopted a capitalization threshold of $100,000 on infrastmcture capital assets and $5,000 on other capital assets for reporting purposes. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives or improve their efficiency or capacity are not capitalized.

Assets reported in the fund financial statements for govemmental funds exclude capital assets. The govemmental funds financial statements report the acquisition of capital assets as expenditures.

L. Deferred Revenues

Deferred revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Defen'ed revenues also arise when the Police Jury receives resources before it has a legal claim to them, as when grant monies are received prior to the occurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria have been met or the Police Jury has a legal claim to the resources, the liability for deferred revenue is removed from the balance sheet and revenue is recognized.

M. Compensated Absences

Vested or accumulated vacation leave or compensatory time eamed that is expected to be liquidated with expendable available financial resources are reported as expenditures and a fund liability of the govemmental fund that will pay it. Amounts of compensated absences not expected to be liquidated with expendable available financial resources are not reported in the fund financial statements. No accmed current expenditures are reported in the govemmental funds, as the amounts are considered immaterial. The full liability and related costs are reported in the govemment-wide financial statements. The non-cunent portion represents a reconciling item between the fund and govemment-wide statements.

Employees of the Police Jury eam from 5 to 20 days of vacation leave each year, depending on length of sen/ice. After April 1, 2006, employees may cany fonvard up to 240 hours of accumulated eamed annual leave not taken. Employees with more than 240 hours at April 1, 2006 are limited to that amount. Upon separation from service, the accumulated vacation leave, up to the date of separation, is paid.

Full-time employees of the Police Jury accme sick leave benefits which are calculated on the basis of a "benefit year" at the rate of 1 day per month. Unused sick leave is allowed to accumulate without limit. Unused sick leave benefits will not be paid to employees upon tennination of employment.

N. Sales Taxes

DeSoto Parish has a 1% sales and use tax appnaved by the voters on May 16,1981. for an indefinite period of time. The tax, after all necessary costs for collection and administration, is dedicated to constmcting, acquiring, extending, improving, and maintaining the parish library (25 percent), parish roads (50 percent), parish jail facilities (10 percent), and solid waste collection and disposal facilities (15 percent).

46




O. Hotel-Motel Tax

The DeSoto Parish Police Jury, by Ordinance No. 2 dated June 13,1984, levied a tax based on state statute upon the occupancy of hotel and motel rooms and overnight camping facilities within the parish Current state statute sets this tax at 3 percent. The tax, after collection costs not to exceed 6 percent, is restricted for purposes of attracting conventions and tourists to the parish.

P. Use of Estimates

The preparation of financial statements In confonnity with accounting principles generally accepted in the United States of America require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenditures, and expenses during the reporting period. Actual results could differ from those estimates.

Q. Long-Term Obligations

The accounting treatment of long-tenn debt depends upon whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the govemment-wide or fund financial statements. All long-term debt to be repaid from governmental and business-type resources is reported as liabilities in the govemment-wide financial statements. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as defen'ed charges and amortized over the temn of related debt. Interest expense on long-tenm debt is recognized in the govemment-wide financial statements as the interest accrues, regardless of when it is due.

Long-tenn debt for govemmental funds is not reported as liabilities in the fund financial statements. In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of the debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

The accounting for proprietary fund long-temn debt is the same in the fund statements as it is in the govemment-wide statements.

The Police Jury's long-temn debt consists of general obligation bonds, certificates of indebtedness, and capital leases.

47




R. Fund Equity

In the government-wide financial statements equity (the difference between assets and liabilities) is classified as net assets and is reported in three components:

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

b. Restricted net assets - Consists of net assets with constraints placed on the use by (1) external groups, such as creditors, grantors, or laws or regulations of other govemments; or (2) law through constitutional provisions or enabling legislation.

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

Beginning with the fiscal year ended December 31, 2010, the DeSoto Parish Police Jury implemented GASB Statement No, 54, Fund Balance Reporting and Govemmental Fund Type Definitions. This Statement provides more cleariy defined fund balance categories to make the nature and extent of the constraints placed on a govemment's fund balance more transparent. The governmental fund financial statements present fund balances based on classificafions that comprise a hierarchy that is based primarily on the extent to which the Police Jury is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent.

In the fund financial statement, governmental fund balance is presented in five possible categories:

• Nonspendable—resources which cannot be spent because they are either (a) not in spendable fomn (such as prepaid items); or (b) legally or contractually required to be maintained intact.

• Restricted—resources with constraints placed on the use of resources that are either (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislafion.

• Committed—resources which are subject to limitations or constraints to specific purposes the government imposes upon itself at its highest level of decision making (the Jury). These amounts cannot be used for any other purpose unless government takes the same highest level action to remove or change the constraint.

• Assigned—resources neither restricted nor committed for which the Police Jury has a state intended use as established by the Jury or a body or official (Parish Treasurer) to which the Police Jury has delegated the authority to assign amounts for specific purposes.

• Unassigned—resources which cannot be properly classified in one of the other four categories. The General Fund is the only fund that reports a positive unassigned fund balance amount.

The Police Jury establishes (and modifies and rescinds) fund balance commitments and assignments by passage of an ordinance or resolution.

At December 31, 2011, $26,217,397 of the Police Jury's net assets were restricted by enabling legislation. $22,355 was non-spendable held as inventory. $143,818 was assigned and $11,818,938 was unassigned.

The Police Jury would typically use restricted fund balances first, followed by committed resources and assigned resources as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first and to defer the use of these other classified funds.

48




S. Risk Management

The Police Jury is exposed to various risks of loss related to torts; theft of, damage to, and destmction of assets; errors and omissions; injuries to employees; and natural disasters. The Police Jury canies commercial insurance for the risk of loss including automobile liability, general liability, property damage, wori<ers compensation, errors and omissions, and surety bonds. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any ofthe past three fiscal years.

2. Ad Valorem Taxes

The Police Jury levies taxes on real and business personal property located within the boundaries of DeSoto Parish. Property taxes are levied by the Police Jury on property values assessed by the DeSoto Parish Tax Assessor and approved by the State of Louisiana Tax Commission.

The DeSoto Parish Sheriff's office bills and collects property taxes for the Police Jury. Collections are remitted to the Police Jury monthly. The Police Jury recognizes property tax revenues when levied.

The property tax calendar

Assessment date Levy date Tax bills mailed Total taxes are due Penalties & interest added Tax sale

January 1,2011 June 30. 2011 October 15,2011 December 31,2011 January 31,2012 May 16,2012

A revaluation of all property is required to be completed not less than every four years. The last revaluation was completed for the roll of January 1.2008. Total assessed value was $595,761,003 in 2011. Louisiana state law exempts the first $75,000 of assessed value of a taxpayer's primary residence from parish property taxes. This homestead exemption was a total of $39,328,962 of the assessed value in 2011. For the year ended December 31, 2011 the Police Jury authorized ad valorem tax millages of 16.88 mills and levied taxes of 16.88 mills.

The following is a summary of authorized and levied ad valorem taxes for the primary government for the year ended December 31. 2011:

Ma)dmum Autiiorized Le\Aed E qoiration Milage Millage Millage Date

Parishwide taxes: General Fund Road Maintenance Landfill Courthouse Maintenance Courthouse Building

3.74 5.00 5.11 1.02

Variable

3.61 4.82 4.93 1.02

Variable

3.61 4.82 4.93 1.02 2.50

Indefinite 2013 2015 2017 2011

49



2. Ad Valorem Taxes (continued)

The following are the principal taxpayers for the parish and their 2011 assessed valuations:

international Paper Co EXCO Partners Operating Partnership El Paso Production Company Chesapeake Operating. Inc Enterprise Gathering, LLC Southwestem Electric Povwer C^hesapeake lîdstream CLECO Power, LLC Trinidad Drilling ETC Tiger Drilling

Total

Manufacture Oil & Gas Oil & Gas a i & G a s Oil & Gas Utility CMl&Gas Utility Oil & Gas Oil & Gas

2011 Assessed Valuation

r $ 66.914.911 48.217.876 36.012,407 25.576.738 22.819.881 21,805.495 18.504,445 17,334,343 15.920,044 13,737.830

$286,843,970

2011 Assessed

Tax

$ 962.236 693.373 517,858 367,793 328.150 313.563 266.094 249.268 228,930 197.550

$ 4,124,816

Percent OfTotal

Assessed Valuation

16.85% 12.14% 9.07% 6.44% 5.75% 5.49% 4.66% 4.36% 4.01% 3.46%

72.23%

3. Cash and Cash Equivalents and Investments

Cash and Cash Equivalents:

At December 31,2011. the Police Jury has cash and cash equivalents (book balances) totaling $7,655,305 as follows:

Demand deposits US. Governnent Money lUbrket

Total

$ 7,183,627 471.678

$ 7,655.305

The Police Jury uses a master bank account for cash management purposes. At year-end certain individual funds report negative cash balances. At December 31,2011, the Community Services Fund had a negative cash balance of $518,063. As a result of the use of the master bank account, the cash overdraft of the Community Action Fund is being financed from monies of other funds.

The Louisiana Department of Environmental Quality requires a pennit holder of a solid waste processing or disposal facility to provide assurance that funds will be available when needed for closure and/or post closure care of a facility. In order to provide this assurance for the Mundy Landfill, on March 26, 2009, the Police Jury entered into a tmst agreement with a financial institution to establish a tmst fund for the benefit of the Louisiana Department of Environmental Quality. The tmst holds a certificate of deposit in favor of the Louisiana Department of Environmental Quality in the amount of $4,113,382.

50



3. Cash and Cash Equivalents and Investments (continued)

Investments:

At December 31,2011. the Police Jury has the following investments and maturities. trwestn-BHt Wbturities (in Years)

Type of Investment

U.S Government Securities

Louisiana Asset tenagen1ent Rx)l

Oertif Icates of Deposit

Total investments

Fair Value

$13,991,347

1.966.417

5.542,218

$21,499,982

Less Than 1Year

$ 1.460.164

1,966.417

5.542,218

$ 8.968,799

1 - 5 Years

$8,721,345

$8,721,345

6 - 1 0 Years

$ 803.111

$ 803,111

Over 10 Years

$3,nn6,/2/

$3,006,727

Investment valuation. The U.S. govemment securities are stated at fair value based on market quotations. Certificates of deposit are stated at cost, which approximates martlet value. The investments in LAMP are stated at fair value based upon quoted maricet rates. The fair value is detennined on a weekly basis by LAMP and the value of the position in the extemal investment pool is the same as the value of the pool shares.

The cash and investments of the DeSoto Parish Police Jury are subject to the following risks:

Custodial Credit Risk:

Under state law, these deposits (or the resulting bank balances) must be secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank. The mari et value of the pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agent. These securities are held in the name of the pledging fiscal agent bank in a holding or custodial bank that is mutually acceptable to both parties.

Louisiana Revised Statute 39:1229 imposes a statutory requirement on the custodial bank to advertise and sell the pledged securities within 10 days of being notified by the Police Jury that the fiscal agent bank has failed to pay deposited funds upon demand. Further, Louisiana Revised Stature 39:1224 states that securities held by a third party shall be deemed to be held in the Police Jury's name.

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the govemment will not be able to recover its deposits. At year end, the Police Jury had collected bank balances of $14,116,946 which were fully protected by $950,000 of federal depository insurance and pledged securities with a maricet value of $13,116,945 held by the custodial banks in the name of the Police Jury.

Interest Rate Risk:

This is the risk that changes in mari<et interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in mari et interest rates. The Policy Jury does not have a fomnal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. However, as a means of offsetting exposure to interest rate risk, the Policy Jury diversifies its investments by security type and institution.

51



3. Cash and Cash Equivalents and Investments (continued)

Credit Risk:

Generally, credit risk is the risk that an issuer of a debt type investment will not fulfill its obligation to the holder of the investment. U.S. govemment securities or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk exposure. The Police Jury's investments comply with Louisiana Statutes (LSA R.S. 33:2955). Under state law. the Police Jury may deposit funds with a fiscal agent organized under the laws of Louisiana, the laws of any other state in the union, or the laws of the United States. The Police Jury may invest in United States bonds, treasury notes and bills, govemment backed agency securities, or certificates and fime deposits of state banks organized under Louisiana law and national banks organized under Louisiana law and national banks having principal offices in Louisiana.

Investments held at December 31, 2011 include $1,966,417, invested with the Louisiana Asset Management Pool (LAMP), a local govemment investment pool. The Louisiana Asset Management Pool is administered by LAMP, Inc., a non-profit corporation organized under the laws of the State of Louisiana. Only local govemment entities having contracted to participate in LAMP have an investment interest in its pool of assets. The primary objective of LAMP is to provide a safe environment for the placement of public funds in short term, high quality investments. The LAMP portfolio includes only securifies and other obtigafions in which local governments in Louisiana are authorized to invest in accordance with LSA-R.S. 33:2955. .

The dollar weighted average portfolio maturity of LAMP assets is restricted to not more than 90 days, and consists of no securities with a maturity in excess of 397 days. LAMP is designed to be highly liquid to give its participants immediate access to their account balances.

LAMP, Inc. is subject to the regulatory oversight of the state treasurer and the board of directors. LAMP is not registered with the SEC as an investment company.

52



4. Receivables

The following is a summary of receivables at December 31,2011:


Ad vatoremtax Sales and use taxes Severance tax Tourism tax Federal Grants State Grante:

Parish transportation fund Video poker Other state grants

Fees, charges, and comnrissions Rnes and forfeitures Rents and royalties Interest Other

General Fund

$ 2,846.871 -

507,516 19,037

183,880

-62,430

147,793 8.205

-415,342

36,048 7.484

Solid V\ibste Fund

$ 2,944.556

---

---

292.847 ---780

Road Fund

$ 2,867.943 -

507,516 --

114.587

-36.980 8,170

----

Airport Fund

$ ----

---

7,100 -

27.628 50.545

1,650

Allowance

Total receivables

4,234.606 (104.002)

3.238.184 (83.863)

3.535,196 (46,940)

86.923

$ 4,130.604 $ 3,154.321 $ 3,488.257 $ 86.923

Governmental Activities Business-Type

Activities

Ad vatoremtax Sales and use taxes Severance tax Tourism tax Federal Grants State Grants:

Parish transportatton fund Video poker Other state grarrts

Fees, charges, and comiissions Rnes and forfeitures Rents and royalties Interest ahe r

Allowance

Total receivables

Sales Tax Fund

$ 2.093.105

---

--------

2,093,105

-

$ 2,093.105

Other GovernrTBntal

$

$

53

Funds

---

183,529

---380

90,764 --

3,395 278.068

*

278,068

Biterprise Fund

Eastside Sewer

$

$

----

-. -

3.462 ----

3,462 -

3.462

Total

$ 8,659,371 2,093.105 1,015.032

19.037 367.409

114.587 62.430

184,773 320.164

90,764 442,970

86,593 13.309

13.469.546 (234,805)

$13,234,741



5. Interfund Assets, Interfund Liabilities, and Operating Transfers

In the ordinary course of business, the Police Jury routinely transfers resources between its funds. Transfers are used to (1) move revenues from the fund required by statute or budget to collect them to the fund required by statute or budget to spend them, and (2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

Tr9n$f?rln General Fund Road Fund Road Fund General Fund Community Mion Eastside Sewer

Fund

Animal SerMces Fund

Tf?n?ferQMt Criminal Court Solid Wbste Fund General Fund Wtness & Jurors Fund General Fund General Fund General Fund

Anount $ 37,100 1,600,000 6,900,000

60,000 47,000 10.000

357,700 $9,011,800

Interfund balances, on the fund financial statements at December 31,2011, consisted of the following:

Receivabte Fund

(Beneral Fund Road Fund Sales Tax Fund Jail Fund Solid V\^ste Fund Criminal Court Fund Airport Fund Rental Assistance Fund Homeland Security Fund Total

$

$

Due From

125,647 1,074,273

-207.301 310,952

-7,049

--

1,725,222

$

J=

PueTP

_ -

1.557,778 -

51,882 69,774

-188

45.600 1.725.222

54



6. Capital Assets

Capital asset activity for the year ended December 31,2011, was as follows:

Govemmental activities: Capital assets not being depreciated:

Land Land Improvements - Groundworic Constmction in progress Total assets not being depreciated

Capital assets being depredated: Buildings and improvements Land Improvements - Stmctures Fumiture and equipment Infi stmcturo

Total assets being depreciated

Less accumulated deprodation for Buildings and improvements Land Improvements - Stmctures Fumiture and equipment Infirastmcture

Total accumulated depredation

Total capital assets - net

Balance January 1,2011

$ 1.985,145

3,554.647 5.539.792

23,856.091

8.254,162 182.350.613 214.460.866

9.867,159 1,005

4,200.425 166,549.237 180,617.826

$ 39,382.832

Editions

$ 1.810.836

211,906 2.022,742

2.096.119 442.218

2.643.750 25.395.674 30.577.761

595.868 13.467

822.570 1.092,773 2.524,678

$30,075,825

Deletions/ Redassifi cations

$ (4.402)

(1,249.209) (1.253.611)

-

(35,664) 1.249.209 1,213.545

(15,861) -

(15,861)

(24.205)

Balance December 31.

2011

$ 1,980.743 1,810,836 2.517,344 6.308,923

25,952.210 442,218

10,862.248 208,995.496 246,252,172

10,463,027 14,472

5.007,134 167,642,010 183.126,643

$ 69,434.452

Depreciafion expense of $2,524,678 for the year ended December 31. 2011, was charged to the following govemmental functions:

General govemment: Legislative Judidal Elections Finance and administrative

Public safety Public works Sanitation Cultural and recreation Health and welfare Community development Transportation

Total

$ 51.933 319,027

7.757 2,661

205,128 1.034,731

709,592 75.093 12.622 16,325 89,809

$ 2.524.678

55



6. Capital Assets (continued)

Balance January 1,

2011 Ailditions Deletions

Business-Type Activities: Capital assets not being depredated:

Land $ 10,175 $

Balance December 31.2011

$ 10,175 Capital assets being depredated:

Sewer system Treatnent plant

Total assets being depredated

Less accumulated depredation ton Sewer system Treatinent plant

Total accumulated deprecation

Total capital assets - net

373,375 101,180 474,555

373,375 101,180 474,555

$ 10,175 $

373,375 101.180 474.555

373,375 101.180 474,555

$ - $ 10,175

7. Accounts Payable and Accrued Expenses

Accounts payable and accmed expenses at December 31.2011, consists of the following:

Governmental Activities: General Fund Road Fund Solid VV^te Fund Airport Fund Sales Tax Fund Other Governmental Funds

Total Govemmental Activities

Business-Type Activities: Eastside Sewer Fund

Total accounts payable

. Fâble to Vendors

$ 214.176 1.511.282

510.162 465.630 20.094

168,146 2.889.490

1,547 $ 2.891,037

F^roll Liabilities

$ 177.613 42,952 22.012

1.559.34 -

15.273 259,409

-$ 259,409

Total Payables

$ 391.788 1,554.234

532.174 467,189 20,094

183,419 3.148,898

1.547 $ 3,150,445

8. Due to Other Govemments

Effective July 1, 2004, the Police Jury transfen-ed the responsibility for the accounfing and administration of the DeSoto Parish Library to the DeSoto Parish Library Board of Control. On that date, responsibility for the assets and liabilities ofthe DeSoto Parish Library was assumed by the DeSoto Parish Library Board of Control.

The DeSoto Parish Police Jury collects sales taxes that are dedicated to the DeSoto Parish Library. As of December 31, 2011, $518.2537 of sales taxes collected by vendors dedicated to the library are reported in the Sales Tax Fund as "Due to Other Governments."

56



9. Deferred Revenues

Deferred revenues in the govemmental funds amounted to $534,915 at December 31. 2011. This amount represents $370,491 of ad valorem taxes assessed but not collected within the time period required to meet the "available" criteria for recognition in the cunent period and $164.4245 of federal grant monies received under the Section 8 Program prior to the occun'ence of qualifying expenditures.

10. Pension Plan

Plan Description. Substantially all employees of the DeSoto Parish Police Jury are members of the Parochial Employees Retirement System of Louisiana (System), a cost-sharing, mulfiple employer defined benefit pension plan administered by a separate board of tmstees. The System is composed of two disfinct plans. Plan A and Plan B. with separate assets and benefit provisions. All employees of the police jury are members of Plan B.

All pennanent employees working at least twenty eight (28) hours per week who are paid wholly or in part from parish funds and all elected parish officials are eligible to participate in the System. Under Plan B, employees who refire at or after age sixty two (62) with at least ten (10) years of creditable service, at or after age fifty five (55) with at least thirty (30) years of creditable service, are entitled to a retirement benefit, payable monthly for life, equal to two percent (2%) of their final-average monthly salary in excess of $100 for each year of creditable service. Furthemnore, employees with at least ten (10) years of creditable sen/ice. but less than thirty (30) years, may take eariy refirement benefits commencing at or after age sixty (60), with the basic benefit reduced three percent (3%) for each year retirement precedes age sixty two (62), unless he has thirty (30) years of creditable sen/ice. In any case, monthly refirement benefits paid under Plan B cannot exceed one hundred percent (100%) of final average salary. Final-average salary is the employee's average salary over the thirty six (36) consecutive or joined months that produce the highest average. Employees who temninate with at least the amount of creditable service stated above, and do not withdraw their employee contributions, may refire at the ages specified above and receive the benefits accmed to their date of temnination. The System also provides death and disability benefits. Benefits are established or amended by state statute.

The System issues an annual publicly available financial report that includes financial statements and required supplementary information for the System. That report may be obtained by writing to the Parochial Employees' Retirement System. Post Office Box 14619. Baton Rouge. Louisiana 70898-4619, or by calling (225) 928-1361.

Funding Policy. Under Plan B, members are required by state statute to contribute three percent (3%) of their annual covered salary in excess of $1,200 and the DeSoto Parish Police jury is required to contribute at an actuarially detennined rate. The current rate is six percent (6.25%) of annual covered payroll. Contributions to the system include one-fourth of one percent (one percent for Orieans and East Baton Rouge Parishes) of the taxes shown to be collectible by the tax rolls of each parish. These tax dollars are divided between Plan A and Plan B based proportionately on the salaries of the active member of each plan. The contribution requirements of plan members and the DeSoto Parish Police Jury are established and may be amended by the state statute. As provided by Louisiana Revised Statute 11:103, the employer contributions are detemnined by actuarial valuation and are subject to change each year based on the results of the valuation for the prior fiscal year. The DeSoto Parish Police Jury's contributions to the System under Plan B for the years ending December 31. 2011.2010. and 2009 were $448,114, $434,433, and $229,526, equal to the required contributions for each year.

11. Postemployment Benefits

Plan Description - The Police Jury administers a single-employer defined benefit healthcare plan. The plan provides lifetime healthcare insurance for eligible refirees through the Police Jury's group health insurance plan, which covers both active and retired members. Substantially all of the Police Jury's employees become eligible for these benefits if they reach nonnal refirement age while working for the Police Jury.

57

DeSoto Parish PoHce Jury Mansfield, Louisiana


11. Postemployment Benefits (continued)

The Police Jury contributes 75 percent of the cost of current-year premiums for eligible refired plan members. Plan members receiving benefits contribute 25 percent of their premium costs.

Annual OPEB Cost and Net OPEB Obligation - Until 2008, the Police Jury recognized the cost of providing postemployment healthcare benefits as an expense when the benefit premiums were due. financing the cost of the other postemployment benefit on a pay-as-you-go basis. Effective January 1, 2008. the Police Jury implemented Govemment Accounting Standards Board Statement Number 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45). GASB 45 requires the long-temn cost of retirement health care benefits to be detennined on an actuarial basis and reported similar to pension plans. The Police Jury contracts with an actuarial consultant to provide an actuarial valuation of the OPEB liability under GASB 45. The requirements of GASB 45 are being implemented prospectively. Accordingly, for financial statement purposes, no liability was reported for the other post employment benefits at the date of transition.

Funding Policy - GASB Statement 45 does not mandate the prefunding of the postemployment benefits liability. The Police Jury cunêntly funds these payments on a pay-as-you-go basis. No assets have been segregated and restricted to provide post employment benefits. For the year ended December 31, 2011, the Police Jury contributed $25,359 for healthcare for eight refired members.

Annual OPEB Cost-The Police Jury's annual other postemployment benefit (OPEB) cost (expense) is calculated based on annual required contribution of the employer (ARC). The ARC was calculated using the unit credit actuarial cost method. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The remaining amortization period at December 31. 2011 was twenty-six years.

The following table shows the annual OPEB cost and the net OPEB obligafion for the year ended December 31, 2011 and the two prior years:

Annual Percentage of Year Discount OPEB OPEB Cost Net OPEB

Ended Rate Cost Contributed Obligation 2009 4.00% $ 391,977 11.36% $ 694,888 2010 4.00% 479,067 9.97% 1.126,173 2011 4.00% 496.318 5.11% 1.597.132

58




Funded Status and Funding Progress - The following table shows components of the Police Jury's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Police Jury's net OPEB:

Nonnal cost at year end $ 450.623 Amortization of UAAL 42.350

Annual required contribution 492.973

Interest on net OPEB obligation 45,047 Adjustment to annual required contribution (41,702)

Annual OPEB cost (expense) 496,318 Contribution made (25,359)

Increase in net OPEB obligation 470,959 Net OPEB obligation - beginning of year 1,126,173

Net OPEB obligation - end of year $ 1,597.132

The Police Jury has 99 active and 8 refired employees participating in the system with an actuarial accmed liability of $3,866,925. As noted above, actuarial accmed liability is unfunded.

Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events in the future. Examples include assumptions about future employment, mortality, and healthcare cost trend. Amounts detemnined regarding the annual required contributions of the Police Jury are subject to confinual revision as actual results are compared to past expectations and new esfimates are made about the future. The Police Jury's actual liability will vary from these estimates and will not be known until such fime that all eligibility is exhausted and all benefits are paid.

Actuarial Methods and Assumptions - Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and indude the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that are designed to reduce short-term volafility in actuarial accmed liabilities. Significant methods and assumptions were as follows:

Discount rate for valuing liabilities - The investment rate of return was detennined to be 4.00% per annum, compounded annually.

Retirement age for active employees - Active plan members were assumed to retire as follows:

Age Male Female 55-58 5^65 66+

18.0% 140%

100.0%

18.0% 14.0%

100.0%

Mortality - Life expectancies were based on the RP-2000 Combined Healthy Mortality Table published by the Society of Actuaries.

59




Tumo\/er-Active plan members were assumed to withdraw as follows:

Years Sewce

1 2 3 4 5

M 9-14 15-17 18+

Male 20.0% 16.0% 15.0% 11.0% 10.0% 8.0% 6.0% 3.0% 1.0%

Female 20.0% 16.0% 15.0% 11.0% 10.0% 8.0% 6.0% 3.0% 1.0%

Coverage assumption -100% of employees who elect coverage while in active employment and who are eligible for retiree medical benefits are assumed to elect continued medical coverage in retirement. Active employees with life insurance coverage are assumed to elect refiree life insurance coverage.

Healthcare cost trend rate - The expected rate of increase in healthcare insurance premiums varied from a rate of 7.00% initially, reducing .10% annually.

Health insurance premiums - The gross premiums for pre-65 retirees for 2011 is $527 per month. Post-65 retirees' premiums are approximately $160 per month.

12. Long-Term Debt and Capitalized Leases

The following is a summary of the long-term debt obligation transactions for the year ended December 31,2011:

Total

General Obligation

Refijnding Bonds Series 2008

Capital Leases

Beginning Balances $ 2,198,000 $ 122.116 $2,320,116 Additions - -Deductions (2.198,000) (72.130) (2.270.130)

Ending Balances $ $ 49,986 49,986

Due VWtinin One Year - $ 34,068 $ 34,068

In 2011. the Police Jury pre-paid all ofthe Series 2008 General Obligation Refunding Bonds. As a result of the advance payment, the Police Jury was required to pay a two percent premium of $39,280; however, the Police Jury saved $305,747 in future interest payments.

In accordance with Louisiana Revised Statute 39:562, the Police Jury is legally resti-icted from incuning long-temn bonded debt in excess of 10% of the assessed value of taxable property in the parish. At December 31. 2011, the statutory limit was $35,850,793.

60



12. Long-Term Debt and Capitalized Leases (continued)

Capital Leases

The Police Jury has incun-ed various lease obligations for the acquisition of property and equipment for the Solid Waste Fund and the Airport Fund. The related fund provides debt sen/ice for the capital leases. Equipment acquired by capital leases is included in capital assets. The related capital lease obligations are induded in long-temn liabilities.

The following is a summary of future minimum lease payments, together with the present value of the net minimum lease payments, as of December 31,2011:

Year Ending December 31. 2012 2013 2014 2015 2016 Thereafter

Total minimum lease payments Less amount representing interest

$ 34,646 5,400 5.400 5,400

450 -

51,296 (1.310]

Present value of net minimum lease pavments $ 49.986

13. Landfill Closure and Post Closure Costs

The Police Jury ufilizes the Solid Waste Fund to account for closure and post closure care costs for the Mundy Landfill. In accordance with state and federal regulations, the Parish is required to place a final cover on all active landfill cells when closed and to perfonn certain maintenance and monitoring functions for thirty years after closure.

Although closure and post closure care costs will be paid only near or after the date that the landfill stops accepting waste, the Parish reports a portion of these closure and post closure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date.

The $1,768,884 reported as landfill closure and post closure care liability at December 31. 2011, represents the cumulative amount reported to date based on the use of 44 percent of the estimated capacity of the landfill. The Parish will recognize the remaining estimated cost of closure and post closure care as the remaining esfimated capacity is filled. The estimated final liability for closure and post closure care costs is $4,019,780 at December 31, 2011, which is a decrease of $1,261,140 from the prior year due to an estimate revision.. The Police Jury expects to close the landfill in 2060. These estimated costs are associated with flood control upgrades, remediation of possible greund water contamination, and control of methane gas. There is the potential for these esfimates to change due to inflation, deflation, technology, or change in laws or regulations.

. The Police Jury has this liability funded by a dedicated certificate of deposit in the amount of $4,113,382.

61



14. Compensated Absences

Compensated absences represent accumulated and vested emptoyee leave benefits computed in accorelance with the accounfing principles generally accepted in the United States of America. The liability for compensated absences is computed only at the end of the fiscal year. Compensated absences are paid by the fund that pays the related salaries. As of December 31, 2011, the police jury's compensated absences payable in accordance with GASB Statement No. 16 for all funds amounted to 13,616 hours with a resulting liability of $257,350.

Changes in compensated absences during 2011 are as follows:

Beginning Balance Additions Deductions A\alable lease Adjusted fbr limitation

Net available

$ 264,390 89,589 (89.193) 264.786

(7.436) $ 257,350

15. Operating Leases

The Police Jury has nine (9) long-temn equipment rental agreements which are classified as operafing leases:

725 Caterpillar Articulated Truck - sixty (60) month non-cancellable lease dated June 16, 2006. with a monthly rental of $4,557.33. Total payments made during 2011 were $27,344 with the tease expiring on June 16,2011.

Max Rosco Tack Distributor - sixty (60) month non-cancellable lease dated June 16, 2006, with a monthly rental of $1,874.27. Total payments made during 2011 were $9,371 with the lease expiring on June 16. 2011.

Caterpillar D6TLGP Track-type Tractor - forty-eight (48) month non-cancellable lease dated May 28,2010. with a monthly rental of $6,175.08.

Caterpillar 12H Motor Grader - sixty (60) month non-cancelable lease dated May 2, 2008. with a monthly rental of $2,481.68.

Caterpillar 12H Motor Grader - sixty (60) month non-cancelable lease dated May 2, 2008. with a monthly rental of $2,481.68

Caterpillar RM-300 BWR Reclaimer - sixty (60) month non-cancelable lease dated May 22, 2008. with a monthly rental of $5,821.87.

Caterpillar IT38H Front-end Loader - sixty (60) month non-cancelable lease dated February 9, 2009, with a monthly rental of $3,010.29.

Caterpillar 140M Motor Grader - sixty (60) month non-cancelable lease dated Febmary 23,2009, with a monthly rental of $3.109.16.

Caterpillar RM-300 Road Reclaimer - sixty (60) month non-cancelable lease dated May 18, 2009, with a monthly rental of $5,996.69.

62



15. Operating Leases (continued)

Caterpillar CS-433E ASR Pad Foot Drum Kit - sixty (60) month non-cancelable lease dated May 18, 2009, with a monthly rental of $1,875.30.

Caterpillar 8515 Paver - sixty (60) month non-cancelable lease dated May 25, 2009. with a monthly rental of $2,149.12.

Total cost for these leases during 2011 was $433,925.

Following are the minimum annual rental payments for non-cancellable operafing leases as of December 31, 2011:

2012 2013 2014

Caterpillar Track Type Tractor Caterpillar 12H Motor (Brader Caterpillar 12H Motor Grader Caterpillar RM-300 B\NR Redaimer Caterpillar IT38H Front-end Loader Caterpillar 140M Motor Grader Caterpillar RM-300 Road Redaimer Caterpillar CS-433E ASR Pad FootDmm Kit Caterpillar 8515 Paver

74.101 29,780 29,780 69,862 36,123 37.310 71.960 22,504 25,789

74.101 12.408 12.408 29.109 36.123 37.310 71.960 22.504 25,789

30,875.00 ---

3.010 618

23,987 7,501 8.596

Total $ 397,209 $ 321.712 $ 74,587

16. Workforce Investment Act Program

The DeSoto Parish Police Jury participates in the Wori^force Investment Act Program funded through the Louisiana Department of Labor by the United States Department of Labor. The Police Jury is a member of the Seventh Planning District which is comprised of ten (10) parishes. On August 16, 1983, the members of the Seventh Planning District, consisting of the Parishes of Bienville. Bossier. Caddo, Claiborne, DeSoto, Lincoln, Natchitoches, Red River, Sabine, and Webster and the Seventh Planning District Service Delivery Area (SDA) Private Industry Council entered into an agreement. This agreement designated the president ofthe DeSoto Parish Police Jury as the chief elected official of the SDA and the DeSoto Parish Police Jury as the WIA grant recipient. This agreement names the Coordinating and Development Corporation (CDC) as the administrative entity.

The SDA is comprised of three elements:

1. Private Industry Council (PIC) - Consists of 15 members representing a cross-section ofthe SDA population. The PIC is responsible for providing guidance for program development and for monitoring the operations of the administrative entity.

2. Designated Chief Elected Official - This is a police jury president elected by his peers from the Seventh Planning District. His responsibilities are the same as the PIC.

3. Administrative Entity - The organization selected by the PIC to administer the program is the Coordinating and Development Corporation (CDC) located in Shreveport, Louisiana. All action by the administrative entity must be approved by the PIC and the designated chief elected offidal.

63



16. Workforce Investment Act Program (continued)

In August 1983, the designated chief elected official notified the Assistant Secretary of Labor, State of Louisiana, that the Coordinafing and Development Corporation (CDC) was designated as the administrative entity for the SDA and that all funds and copies of con-espondence should be sent to the CDC. This notification also stated that all bookkeeping and program documents would be maintained by the CDC. Further, in September 1983, the DeSoto Parish Police Jury appointed the Executive Vice President of the CDC as the contracting officer for the WIA Program to act on behalf of the Police Jury. Since that date, the contracting officer has signed all documents on behalf of the grant recipient.

The DeSoto Parish Police Jury is the designated grant recipient and (1) has accepted full responsibility for funds expended under the grant. (2) has assured the Louisiana Department of Labor that all funds provided will be expended according to limitations set forth in the Wori^force Investment Act. federal and state regulafions. and the approved job training plan, and (3) that it will reimburse the Louisiana Department of Labor for any questioned costs which are ultimately disallowed by the United States Department of Labor.

Funds are provided by the Louisiana Department of Labor through a letter of credit anângement into a bank account in the name of the CDC which operates the day-to-day activifies of the program. This arrangement was authorized in September 1983, by the designated chief elected official.

17. Commitments and Contingencies

Grant Audit

The Police Jury receives grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could result in a request for reimbursement for disallowed costs under the tenns of the agreements. In the opinion of management, such disallowance, if any, would not be significant.

Lawsuits

At December 31,2011, the Police Jury was involved in three lawsuits seeking damages from the Police Jury. The Police Jury believes that the claims are without merit and intends to vigorously defend its position. The legal counsels for the Police Jury have opined that the combined maximum potential exposure to the Police Jury arising from these suits will not exceed $102,750. However, it is the legal counsels' opinion that the likelihood that the Police Jury will prevail in these lawsuits is good. Any potential liability accming to the Police Jury as a result of these lawsuits, which is over and above insurance coverage limits; is expected to be immaterial to its financial position; therefore, no provision has been made in the financial statements.

18. Subsequent Events

On April 5,2012. the DeSoto Parish Police Jury entered into an agreement with the Mansfield Female College Museum (a non-profit organization) to fund $500,000 in renovations to the museum located in Mansfield.

Management has evaluated subsequent events through June 29. 2012, which is the date the financial statements were available to be issued.

19. Related Party Transactions

Procedures, obsen/ations, and inquiries did not disclose any related party transactions for the fiscal year ended December 31.2011.

64



20. Deficit Fund Balances

At December 31, 2011, the Community Services Fund reported a deficit fund balance of $400,182. As stated in Note 3, the Community Services Fund also has a cash deficit of $518,063 at year end. Management expects to eliminate these deficits by an operating transfer from the General Fund.

65

Required Supplementary Information - Part II

Budgetary Comparison Schedules

3

. £ CM 3

0) CO

u (0 0) « " c

o "5 CIO t

P 2 « = iJ CL O *C IL V

E O 4> Q 0)

O c o «

Q

o c 7 O ® c

1;! ®

m r o

nanc

e W

ith

lal

Bud

get

Pos

itive

N

egaf

ive)

^ u : - ]

126.

167

(415

,881

)

« ^ « ^

i2 S* 15 •« " (A

9 P "o is < 5 5 " < 01

^ §

766,

77

7,

IO

g

i <o"

istm

ents

ud

geta

ry

Bas

is

^ m ? o <!. .,_,

. - ^ . ^ 8,

868

8,78

0

T - CO

52-S£

,„^

r*." o o ^

_ § (_j

**

i n T -1 ^ N-T - CD i r i " CO 00 CD

o ^ f - " C D "

CO Sr oo ^ LO LO K

"(5 c I I

O CM

? f : Q~CO' ft o>

CD'

CM

S CO CO CO CD"

•8 Q CM ^ 1 ^ CO CM ^ " O i

S?! i n '

CM V -O) (Vj"

s i n

S o CD T - w m CD r S CD O T -

T - i n ^ CD o 00 in Oi cM ^ ' co" 5[^

m - r CD 3r 1^ o5 O) CO r^ oo" oi" co"

T - CM

«>

S S S S S !? CO in in CD o ?5 cjT co' CM" O " ^ " o "

' s fg "S?

</>

T - r ^ r ^ o a > o o h - c o i n r ^ o c 3 ) i n T - ^ T - o o c o C M C O C O ^ C O C O C D I O C O CM 3 ^ CM" T-" 1 - " co" CM" CM" CM"

T - ^ CM CM ^

<^

00 I ^ C M Q J C M C O O O C D C O C J S i - C D O O i n o 5 ^ C M C 3 ) ^ c o o o c M c n m c n c o c o o o o o Q " in r " r*-" a> oo" co' o ' T-" m" O O T - C D C D O J O T - C O T - O COCM 0 > C D T - C M C 0 C 0 O

</>

§§S||§ i§§fei§

| S | 35

1,

544,

,1

42,

C^

§ § l i § i S | g g | | '

' g g g CO T- o u^ CM

«>

_ f~> PQ ( ^ O) O CD C M " T - '

•^ S

m ^3 CD

co'

,_ o CM CO CO f~^

'

tpt CO f*t 05 O CD oo' CD' CJ> ^

CM"

CO O

00 O) CD h-"

__ g o> co' i n

T -

CM CO oo fS

C5 CO m S o ^ J "

O CO

8 S oo" CD" a> T -

CM"

— RI ^ CM CD h-T

,,_ CD

S; o>" CD

^3 ^ 3 C3 C^ O O

§ie CM CM"

00 C7>

-* s f o N-'

_„^ CD

55 i n

s CO

o o o m" CJ> CM

g s

s ^ ^" h- '

i t n

1 ^

ilHI s -K -s a c

UJ

c

(0

•S5 (A - ^ !c o

*5 £ "£ " (0 n -Q-o 15 •5

s»s •£ c — 0) C -D (0 <!> (0 (A

• ^ C

d) O l

£€ to Q-1 o o o c o (0 (Q

^ 0) 0) *-•€ <u

5 CO (A 0)

"5 c 0}

c Q. a>oo

g.2 o'5 0. o

(0 0)

I :-.C h.

(O .Q C T 3 E O C 0) w 3 !^ (0 — u

lil

11 m r

o

§ " 111

< CQ

5 5

o

s oo" .1 s

CD

oo" 1. 1 1 i

,. O O N o o S-T - r ^ • » -

h-" ^ ' o" ^ s; iS CO CO

K c/>

^ f CM

^ [sC

Q8 (D

__ o o> CO S T-" m "

SIP O^CT)"

1 00 h i n

? 1 ^

c/>

«>

, 1 • i ^

I i </»

„.^

8 | ^ K •^" O cn ^ in CO CO

K

^ ^ •^ CM •^ fsj"

S CO

,_ O CJ> o •*-00 o>

gs cô>'

C7>

T—

O i

CM CM"

<

,.. ^D C? C? ^3 C? O CO h^ O 00' ^ ' o ' •^ s; Jfi

CO CO

o o CD" 1 ^ CO co;

... CD 0>

CD a> co" in" CM m

K cj>'

CO CO CM O i CM

- ^

s

CM Tt ,

V>

1 T—" 1 ^ 00

. S | CM" oo' to r^ 95, CO

<D

^ co"

^ i n "

t f>

c H

| |

1 ^ i ' - '

2 8

1

O W

.£

1 (D

1 |2

8 CO

E T3

0)

1

o> c "E

1

§ 1 ? 3

1 1

8

1 T3

i

C 0)

E d)

CO <0 (0

Ic *-*

-c CO

-c o Q. 2 CO

\_ Q. O .•K

I D TJ

-2 C

3 (0

c 0) C -D CO

a> CO CO

c 0) E

4_>

(0 lo I D

o c CD C IE (U

^ *-• 5 tn

Q c

c ^ OJO)

1"° c» c

• > *

c (0 a. E (J o 01 0}

0) a> W

F F CO

8.2 • - to O 3

Q . O

•='2

COS

0) Q

.Sf CM 3

"O ' -O CO

. C k O _ 0)

« l l o £ « to ** •c o a)

c B - g Q

^ s : m

« w (5 f 5 OQ 1 .

/ :-i -

i n OJ CO CM O CO

^ f > ! CM " -

C/>

i n c ^

^ s

^ 5 = < DQ

CQ

m CO CO T— O CO

1 ^ CM T - CD

€/»

r^

s § r^

r ^ a> t l) CO

^ 5

T - O) 1 ^ t o

Sf^ ^^b €A

g ^ • ^

00

SS r^ in 00 ^ t—\ 1^.. oo a> •*- CO © *

s CM O CO f ^ OO

CO

c o E <

• o

CQ

1 u.

O CM

8 5 O CO m CM T - CO

<

CM

5 — OO 1 ^ I ^

(0

O CM

8 5 S S

CM

5 iB m

ii

O OO

CD CM

§ 8 §

«»

n Q

•—*l (^ ^

C7> CO

m ' o '^

O) i n

o

f:S m CM a> a>

CM" ^ "

s§ 1 ^ CM' CD

§ a>

r-"

§ ^

c/>

o o o o o o o" o" o oo CO

o o o ^ CM i n

—

^^ oo i n 1 ^ T -• * - - ^

CO t o 1 ^ ^ CD uS

O i

1 ^ CO CM ro r^ on oo

m

s ^ - oo O - ^ 00 O i i n " T-" CO C3> jgt

<f>

1 s . 00

s i

S CO CO ( D T f

O T - ^— o>" ^ " ^ " CO t o ^ •<- T T CO

CM" ^ "

l § fe'^

§ § t~-

i g <»

. t~j t J ( ^ c ?

' o o o o O CO

— ^

^ ^\ f ^

o o CM i n

— • ^

.. S¥2 CO ^

5f CM i n

cn

CT) h -o CM

(_) CO CD

<

s 1 CM

s g

§ m

• ^

8

S

o o o o CO OO

s

O) i n i n in 1^ cn to

CO CO CO in" f - y

CO

</>

CM CM

t'y t J s s s^

O) s g tn

1^

in CM

t ^

^— I

o o o o o -^ o ~ o ' O 00 CO

8 o

a> m X * -

r^ m T— T—

r- ' ^ CO t o r - ^ 1 ^ i n

tn

oo O) to CM CO

on c^

o o CM

") 8 8 CM

^

r^ ^

;=s :?S TT r^ T - CO

1 m CO i n

ce

^ E iR

B ^ >< 3

£5 (0

|1 E (0 E -o

S u_ O

£3

| ^ § ^ B O

>. . . . 1 ^ 1 . 1 1 2 |

B (0

v>

3 =

B) g m

III

c (D

Q) to

4 - >

CO w

!c

? r to

t r o a. 2 w

- i _ Q. O

-•t^ "TO ^

rf c

i c <D

C T3 to

a> to CO

"c (U

Q) 4 _ *

to lo to

o c CD c

M -

(D . C

** £ CO a> 4 . ^

o c 0)

. c 1 -

C

R © o

l " " O) c >» c to Q .

E o t J tD a> ^ a> a>

CO

O)

C O) c c

T3

12 e S * ^ ^ *S "5 15 .^ 2 E CO t " (D

• CO z O l ^ |i=

0) I

0) _ o

c c

• D T3 C C 3 3

U . U -

0) to

0 ~

3

0) CO £ w u a>

CO .Q c E O "D <)>

O - o C 3 « £ - I to u . Q

t ^ E to © jp ,£ o o -o — to ^ UJ

to to

f 5 m r

o

o tn

.c ^ i § g i ?

nanc

e na

l Bu

Pos

iti

Neq

ati

^ K - ]

. ^ ^ ^

.984

.3

21

•*- oo

§.G € ^

„..^

^ O

S

to

lo-£ =3 3

£ . _ "S "^ D) iS "D iS ^ CQ CO

O S oo" h-" CM 00 • ^ • * -

CM" CO"

« ^ ^

§ m"

o oo"

j2 £• c to § D) W « "§ (S = CQ 5 £

_,, s hik. 1

^ ^

^

- K N .

JM

CO Tj-

o o> CO" CD"

T—

8 cn" 5 cn"

Z3 o E <

"§ CQ

1 iZ

o o Q O R cii

$ 2.

630

16,2

26.2

8

o> CM

00 oo"

lo c

•^ o

o o> ^ 3 CO O CM

8 S O CM CM" O "

T -

<^

cn oo CM

gf CM CM"

1^ tn To S m" cn" m CM CM T -

§ N-

m" CM

s m ' " T —

—

1 , s i n ' • ^ "

T -

—

J

s m '^" T -

—

¥ ^

58 8 CO cn £>•" ffi t - tn cn TT

? : R I

cn CD - ^ cn •<- CM m " 10" CM" CO CD 00

o CM m O) CO CD cn i n CO in" K CO" CO O ' f -•<- 00 - ^

^"Rl

CO ffi cn h-" CM CM CM'

s 00'

^

s

,-

% CM" s in"

""

i co"

f t t " 1

0 Q ' tl-lt i n co"

... CD ' "

in h* CM" O >

CO ^

K e n

in in

K i r -

CM"

s CO

^ — —

1 00" f t

^ f

1

^.^

8 . 00" 0 ^

„_.

8 00" (~i 1

^

r 00

h-T ^ S

CO

c8 N."

s? 5 00

8 Q" ^3 LO 00'

.. CO ' ^ CO 1 ^ h-~ c n CO CO cn -^ in cn

% CM' c^ in co'

RI

cn CO CM

s in

s

^^ ^3 fpt 0

CO h* in

g 0 ' Q"

s 00'

C3 f t

0 Q '

S 00'

. ^ 3 ^~ f ^ ^—

0 r 00" cn CO CO CM ^

t£o)"

^-T -

r T - ~

CO CM CM"

CO CD m CO a> CO 1^ " CD" as cn" o "

tn CO CM

95" m cn"

. f t t ^

0

g" CO h-T »—

1

^^ f ^ CM

8 ^ Q" ^ 8 5 K e n

CM

$ ^ ? CM"

c

E

lo % CO . ^

•B o ^ o .

t r CO to -u c^ o — ' t i to T3

s > ^ •£ c — 0) C -D to C

2R to 0) ^ co"^ r^ c — 0) O)

E-i is to « Q. 1 o o o c u to to ^ » (D * -

. C <D — 0) O CO (0 0) «-• o c 0)

o

8.2 : = to

J P ' =

a. o

to 0) Q. I? 7; to

COS 0) Q

o • -CO CO

.8 i f 2 P o «>

0 . 0 O 3 "o £» -o iS £

ffi ^

8 5 | 1 8

^ IT

. f t CM

S 8 O) K 00 cn i n m

€/>

CM

s K

j 3 &• c to CO - -5.2

5 s

O CM <D Q T- CO co"^ ' g> o 71- " ^

SSi CO T f CO 00' cn 00 1 - CO

i A

cn

£ g 0

1 "D

£ Q)

-S 3 CD

15 c ir

15 _c ra S

0 0 ^ 3 ~? m 0 8fe

00

v>

0 0 0 0 i n 0 ^ ^~ r^ T T ^~*

w^

Q f|—|t

m 0 cn

Q ^ 3 m CO' T—

CO

i!S§

fli S £

o cn CO LO •»- CM ^ ' c o '

o T-

8S o"cp" Tf s .

co"

1 ^ 1 ^ ^ CO o t o CO Tf T-

co'-^" CM T -T f CM

S

8

1

8

8

g" CO'

1

If in

i •? • * - •

to 'c E T3

to tu CJ c to c

-.^ (0

T- cn § t

i 1 1 1 (59)

i

e^

o o tn ^ CO m

| K § , , (3

4,

26,

(467

,

fe

i

t ^

0 CM

s" CM T f

cn m 0

a> CM CO

1 1 1 _ „ . ^ O i ^~ i n Tf 0 1 ^

5 s CM i n

G : - •

CM CO CD

S" CM CO"

0 0 00 In ' "

8

^" Tf"

CM

in

§ CO

i/>

| 8 m"

8

T—

1 o> CM

CO

• 1

a> 00 CM m co" T-"

1 3 ^ 3 ) ^ f ^ 0 CD i n CM

f t f t

LO O)"

m"

^^ g 0 _r

i n

1

i

§ § in

s s T -

1^ 3 1 CO"

!8 c:

(0

{8 y

^ ^ 3 o ^ CO

!8 to _

8 •" a>

8.1

o

il||il|fi..i i? ,2.1

o w g

o to

•il 5 S,

^ 6

a>

I

^^ CM

^ S" 0 CO

T " "

s s" m T - ~ T -

05

S o> ^ CO"

€ ^

o>

tD I I

(D tu O O c c

•O "D C C

i2 £

tD

Q) 4 - i

ro lo CO

!c

i • c

• e 0 Q .

2 CO

ro i _ Q . 0

_-* "ro "6 O)

c c ro £ ro i2 c (D

E tD .*!: ro m 15 0 c ro c

U-V x : • - •

B tn Q>

4 - 1

0 c 0) J= H

3 ro *.» c <D • D C

a 0) c>j

?>-'^ cn c

• > .

c ro Q.

E ( 0

ro tu £ (D (D CO

8.2 ~ 0)

p = Q- O

• C 2 to o

O c o 5 COS 0) Q

3 1 . "D o « CM

O T-"

m |< 0)

o t » Q

^ to « £»C0-o ro c <^ lU

ffi ^

g^

iill

C (0

< 5

< "8

CQ

a

<e

to £» IB'SiSlo

Act

u

Am

ou

(Bud

ge

Bas

i §

«/>

s g

o>

8 O CO'

w

w

cn

ce

<e

€e

c^

c tD

E 0) 13 lo CO . *J

^ o : : : Q-

o 2 "£ « ro -i-Q. O

A i to -o *— ^ m TO

— 0) C -D ro c 2 8. ro © C O

c — O O)

i5 ro lo Q.

is § g 8 ro ro • ^ ^ tu *-x: © t ; <» o CO CO ©

•5 c

l.i.i O) c c cn

c T3 C ©

© ©

o o g>ro ro ESS O T 3 T 3

Z U . U -

©


Notes to Budgetary Comparison Schedules Year Ended December 31, 2011

Budgetary Information

The budgets are prepared in accordance with accounting principles generally accepted in the United States of America. Budgets for most govemmental funds are adopted annually on the cash basis of accounting. Budgets for some capital project funds are adopted on a project-length basis. Because the budgets adopted on a project-length basis primarily sen/e as a management control function, no comparison between budgeted and actual amounts for major funds (if any) budgeted on this basis is provided in these financial statements.

The Louisiana Local Govemment Budget Act provides that "the total of proposed expenditures shall not exceed the total of estimated funds available for the ensuing year". The "total estimated funds available" is the sum of the respective estimated fund balances at the beginning of the year and the anticipated revenues for the cunrent year.

Preliminary budgets for the ensuing year are prepared by the treasurer during October of each year. During the month of November, the finance committee reviews the proposed budgets and makes changes as it deems appropriate. The availability of the proposed budgets for public inspection and the date of the public hearing on the budgets are then advertised in the ofFiclal joumal. Usually during its regular December meeting, the Police Jury holds a public hearing on the proposed budgets in order to receive comments from the public and other interested parties. Changes are made to the proposed budgets based on the public hearing and the desires of the Police Jury as a whole. The budgets are usually adopted during the regular December meeting and notice is published in the official joumal.

Louisiana Revised Statute (LSA-R.S.) 39:1311 requires the chief executive or administrative officer of the Police Jury to advise the Jury in writing when:

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

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

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

The treasurer presents necessary budget amendments to the Police Jury during the year when, in her judgment, actual operations differ materially from those anticipated in the original budgets. During a regular or special meeting, the Police Jury reviews the proposed amendments, makes changes as it feels necessary, and fonnally adopts the amendments. The adoption of the amendments is included in the Police Jury minutes published in the official joumal.

The Police Jury exercises budgetary control at the functional level. Within functional levels, the treasurer has the authority to make amendments as necessary.

Expenditures may not legally exceed appropriations at the fund level. Appropriations that are not expended lapse at year-end. The budgets were amended throughout the year. The budget comparison schedules present the original adopted budgets and the final amended budgets.

74

other Supplementary Information


Other Governmental Funds Year Ended December 31,2011

Workforce Investment Act Fund WIA)

The Workforce Investment Act (WIA) Fund Is a special revenue fund used to account for grants from the United States Department of Labor passed through the Louisiana Department of Labor. Grants are subsequently transferred to the Coordinating and Development Corporation, which administers the program under contract with the Police Jury. The WIA program provides job training and related assistance to economically disadvantaged individuals. The ultimate goal of the program is to move trainees into permanent self-sustaining employment

Jail Fund

The Jail Fund accounts for the constmction, improvement, and maintenance of parish jail facilities. Financing is primarily provided by sales taxes.

Witness and Juror Fund

The Witness and Juror Fund maintains the court costs assessed and collected from criminal defendants who are convicted or plead guilty or no contest in district court From these costs the police jury pays the compensation and mileage for jurors as required by R. S. 3049. The fund also accounts for fees collected in court proceedings to reimburse other govemmental entities for the expense of off-duty taw enforcement personnel to be witnesses in court.

Criminal Court Fund

The Forty-second Judicial District Criminal Court Fund is established under Section 571.11 of Title 15 of the Louisiana Revised Statutes of 1950, which provides that fines and forfeitures imposed by the district court and district attomey conviction fees in criminal cases be transfened to the parish treasurer and deposited into a special account, to be used for the expenses of the criminal court of tiie parish. Expenditures are made from tiie fund on motion of ttie district attomey and approval of the district judges.

Rental Assistance Fund

The Rental Assistance Fund increases affordable housing choices for very low income households in the parish by allowing families to chose privately owned rental housing in high demand markets. Financing is provided by grants from the United States Department of Housing and Urban Development (Section 8).

Community Services Fund

The Community Semces Fund accounts for tiie distribution of surplus food commodities provided by tiie United States Department of Agricufture, cash grants in lieu of commodities, community services block grants, low Income home energy assistance programs, weatherization assistance programs, and other federal grants. Assistance Is provided in the areas of employment education, better use of income, adequate housing and environment and assistance for emergency needs.

Animal Control

The Animal Control Fund accounts for the constnjction, improvement maintenance and operation of tiie parish animal conti-ol facility.

Homeland Security Fund

The Homeland Security Fund is used to account for grants obtained through the State of Louisiana Division of Administi^tion for domestic preparedness and hurricane relief

Supplementary Infonnation Presented for purposes of additional analysis only.

76

H o '5

Q- Q

n o

coS ©

o CM

© ro s o-g S M © ®

ill O O ©

11 •a c

a if i 2 < -E

<3 • a

?. I f t

s ^' * 0

5 o

s y >

§ co~ ?5

eo

' 5> n

8 r- "

^

1

^-T CM

IO

t f *

CM

O i

$ «

183,418

115,563

164.424

t />

28,918

45,600

«»

i

CO

6

S c3 1 .ffl

<

(O p

cn o 5 I ?S

S5 te IO T -

?

1

t / *

^ T -

8

i

S s

1 s

.

CO

IB

(D

s

i

8 [2 ' S? 52 g t - (M h i . 00 ^ N." V) ^ " co" O "

* gJ S ? ?

CM IO h -h - '

i8 • * '

• *

J

h -t o T-_

T - " CM

lO"

t />

pj o>

s »>

5"

8

8 8

c o CO

ro

ro ro

£ "o ^*s !> ro o r

is fc o © ^

S- 3 §•?

CO o •a © c: © CO ©

tu £

sr (0 to

I I « 1^ ™ -b .a 2 «

n § g

l l ^ 2

o t

£ 2 O .3.

1 s I I i

1

3 l i

5 "s ."5

(0 o O)

g «

£L O £ - <

O c O « c o S ©

o " ^ c "O eo <o E !R - 3 S2

M U. •& © — C.

• c o c £ 0

- .S UJ

2 1^ ro

ill > O a>

© E B *S CO O) c

E o o

CM • GO

O O)

(8 in CM" to

I I CM

I O CO •<- 0 0 •*-

co' CM" h*' uf ^ ' * - CO e o CO —

s

M

I I I I LO • )

I I W I I I l O

§ oo CM CO CM"

, , ^ , i CO o> IO" CM' i tc u? ?5 CM"

<

T3

l l 8

TJ C « i . (0 o (0 ^

^ T3 (0 5

1 I CM

CM CM I I I t (o oo '

CM" ^ "

oo I I ^

fv. CO J

t »

s 1 1 1 CO

S" CM

S r ^ 1 1

" i o" CM

cn CM

• oo

CM

I I I I CM I I

I I • I I I I

§

V M

E ^ 2 E

. S CO

« § -> « c o) s;

| 5 l | l | l l |

o o «

-O 0) (0 ..g

- "o)

S t g) o CD " O (0

6 8

fe in

00

. § S 1 5 § 1

I S I

O CO CO

?!g iC 98 8 in CM ^ CM"

1 1

ss ' ® CO

<o" CO" o> in

r

8 i OO"

(O 0) O)' in

"

g O) <P •T

rt

CM

O

^ • 1 1

5?

CO

i I ^ I

I I I I ^>. ,1

s

'

1

in

ai co"

5. CM

§ ~

9 g

S CD

i g i CO

>» c o m

J-ro

il "(3 g E g

^ T ro g ro o i ^

III o b o vS ^ 8-

S- = (0 o

TJ © C © CO ©

iS <3 < « •-

© ro

o'5 Q. O £ - »

ro ©

o c Q « COS © Q

r- O

o « •o to ^

« £ i:

= "I •O © © c E Q CL k M X © -0

UJ > c

3 !K «

C £ ^ © * ; >" > o ©

© E © ro CO D» c "E

E o o

1 5

1 -•& JJS ^ •

_ 3

l l

00 CM T -

1 T -

8 "

^ ^ O) T -

S

Ii 1

Q 0 ©

g"

t

g h~

g

00 •«r CM CM r-_ 0 0 G> OJ CD T-- CM"

P" in S!? ? s

ss r^ 0

Cv| 10 h -

te <o V

«» ^ Ri

00 t— 00

f

l l 5.1

— "D 'ro

8

CM --I 0

SS

r CM

^ ^

10 (7)

^

S CO

0 CM

s

f«k CO CN CO

r ^ CM

i

K CM CM

—-H CM 00

g

0 0

^ r-CO

CO

^ r

s

s F CM

^

CO

>. ro c ro ro

il C TJ

^ ™ CO o r ^

£ o © g. 9- =>

C0£ TJ ©


Schedule of Compensation Paid to Police Jurors For the Year Ended December 31,2011

The schedule of compensation paid to police jurors is presented in compliance with House Concurrent Resolution No. 54 of the 1979 Session of the Louisiana Legislature. Compensation of the police jurors is included in the legislative expenditures of the General Fund. In accordance with Louisiana Revised Statute 33:1233, The Police Jury has elected the monthly payment method of compensation. Under this method the jurors, except for the president, receive $1,600 per month for perfonning the duties of their office. The president ofthe Police Jury receives an additional $400 ($2,000) each month.

B. Dewayne Mitchell, President Emel Jones- Vice-President Greg Baker Jarrel O. Burch Richard Fuller JeffHeard Fred Jones Sylvester Mayweather A. W. McDonald. Jr. Jeny Moncrief Reggie Roe Total

Salary

$ 24.000 19.200 19,200 19.200 19,200 19,200 19,200 19,200 19,200 19.200 19.200

$216,000

Expense Rei mbursements

$

J

562 107 767 475 676 604

4,956 229 872

1.346 885

11.479

The tenn of cun'ent police jurors expires on January 9, 2012.

Supplementary Information Presented for purposes of additional analysis only.

80

© n

o 3 Q. o

ro .© 0 . ^

O c o « coS ©

ro ^

< CM

o © o

So S © c l ©UJ

UJS

© ?

o CO

O C

o >

ft O 3

< UJ O CD

o

n r ^ r f ' • H h -

h -rt> (O oJ • H

H

g 00 IO CO

o o IO h -

O h-

^ 00

3' S

o r-t ^ 0 ) ^ CO

r- lo in ^ O) 00

O h -CM csl

h -(O

w I- 8 12 r- h- h- S S SS «« CO

'^^ " ^ CO o3

CM CM

o _

M i i I-»

-i I K g Ii Q: ^ •£ < O o

5

r - ID CO r-i O) <£ Oi " ^ O) i n " CO iQ CO ' S

r - . l o CO •H cr> (O O i -^ <T) l o CO in

h- in CO iH cn to Ol ^ o>

?3

I*- in

03 CO m O

§ s s

8 8 § CM CM CM

CO CO CM CM

CO Q ,

m c c

•D — C 0)

U. C

ii < < • : Q : Q : Q : < <

T3 3 < _ CD (0

(0 o

o E a o

> O (0

« S . a CL

1^^

X o

o a,

^ o

E £

^ I °- q Q > (o E " 2 w o :

c O 3

c © m o

>- © to. * ^

CO

CO ' - ' « •a i -

« £ 1 S IS

3 S CM (J)

ro <u

Q S.

CD OJ

a 8 ^ ?5

S ' CO CO 00 CD to CM TH

CM O) CO 01 <J>

•"' S 8 ^ ^

C M CM CM C M CM C M

h - r - r»- h -

S 8 8 8

o CO

' co >, ro c ro

"TO c o

T J

ro O CO CO © CO o

© g .

T3 © c © CO ©

o

c:

£ 8

5 ^ ^ ! § i © fes E 2 © «

ro ^

P <D

S O LU

C D CM C M CM

E £ ro ro rS) ^ o o a . a . i - V .

O U

CO to T3 T3 C C ro JD © 03 £ E o o X X

B B

£ E ro o Sb X 2 H -a o

t o »-

' ? ro © © Q Is ^ o 0) K

© ro •Si « ^ •— O 3 0. o £ - J

.^-6 k mS ro © Q - i ?

5 c

Si ©

Q

n • "

| 5 < C M ^ H •>

o ro ! ^ £ o S-o » Q) ^ • 3 £ c © U J

X «

lij s ?^ ro

©

S 5

15 <

S 5

a:

o 3

S 2 £ S

w

OC < UJ o m u_ s

" 8" 8

s - |

o g

g a IO in

Q . CO

« d E

11 §1 • : ro 2 2 M

ro Q. © Q

ro c ro

S

a C

5 o (0 f!

3 1 5

> ro « a • a

o ^

i£ ^

2 w • ^ ©

as tn' to

111 I 2 S a § Si ^ 1 ^ © I -ro < ; -D

in i E & ^ i I ^ i I

S § o h -co

S i n (*i Oi

0) c o z

s o r- a t

8 <3

2s

8 s LO m 01

I - «

"B CD _

III Ill 1^

I Si

C3

W CD

i I

l l

ro ^

11 If I l l

Sis CO T 4

•

00

^ 0 )

a> CD

^ TH

00

^ 0 )

0 ) CD

^ TH

CM l ^ r-TF o> T-t

CO

00 IO

^ ' H

^ h .

to

oo IO

^ TH

^ h -

co

ro

QQ

$4 TA 00

CM CM

3 S v^ r^ oo 00

n •" ro

i§ © §.

I

f l u © c: £

2 8 il £

.? I

I s

O o

II

€3 © c UJ

E o

ro <-'

i 2 •3 ( 0

5 c

5 «

<

DeSoto Parish Police Jury IVIansfield, Louisiana

Notes to the Schedule of Expenditures of Federal Awards For the Year Ended December 31,2011

1. Basis of Presentation

The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Police Jury and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Govemments, and Non-Profit Organizations. Therefore, some of the amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the primary government financial statements.

83


Financial Data Schedule For the Year Ended December 31,2011

Line Item No.

I l l 128

190

342-010 347

310

600

70710 70300 71500 71400 70000

91300 91000

97300

90000

Description Cash -unrestricted Fraud Recovery

Total Assets

Defened revenue- Operating Subsidy Inter-pnjgram Due To

Total Current UabUities

Total Liabilities and Equity/Net Assel

Management Fee Net Tenant Rental Revenue Other Revenue Fraud Recovery Total Revenue

Management Fee Total Operating- Administrati\e

Housing assistance payments

Total Expenses

$ $

$

$ $

$

$

$ $ $ $ $

$ $

$

$

Total Project

164,588 25

164,613

164.424 189

164,613

164.613

113,112 877.211

9.325 4.812

1,004.460

134.789 134.789

869.671

1.004.460

As per finding 11-02, these amounts have not been submitted electronically to HUD.

Supplementary Infonnation Presented for purposes of additional analysis only.

84

OTHER REPORTS


Edtiie G. Johnson, CPA - A Professional Corporation (1927-1996)

Mark D. Thomas, CPA - A Professional Corporation Roger M. Cunningham, CPA - A Professional Corporation Jessica H. Broadway, CPA - A Professional Corporation Ryan E. Todtenbier, CPA - A Professional Corporation

321 Bienville Street Natchitoches, Louisiana 71457

(318)352-3652 Fax (318) 352-4447

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Jury Members ofthe DeSoto Parish Police Jury

We have audited the financial statements ofthe govemmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the DeSoto Parish Police Juiy, Mansfield, Louisiana, as of and for the year ended December 31, 2011, which collectively comprise the basic financial statements ofthe Police Jury*s primary govemment and have issued our report thereon dated June 28, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards^ issued by the Comptroller General ofthe United States.

Intemal Control Over Financial Reporting

In planning and performing our audit, we considered the DeSoto Parish Police Jury*s intemal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Police Jury's intemal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness ofthe Police Jury's intemal control over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in intemal control such that there is a reasonable possibility that a material misstatement ofthe entity's financial statements will not be prevented, or detected and corrected on a fimely basis.

Our consideration of intemal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in intemal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in intemal control over financial reporting that we consider to be material weaknesses as described above.

Members of AICPA Governmental Audit Quality Center

Members of AICPA Members of Society of Louisiana CPA's

86

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Jury's fmancial statements are free 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 and materia! effect on the determination of fmancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed one instance of noncompliance or other matters that is required to be reported under Govemment Auditing Standards and which is described in the accompanying schedule of findings and questioned costs as 11-01.

The DeSoto Parish Police Jury's responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the Jury's responses, and, accordingly, we express no opinion on them.

This report is intended solely for the information and use ofthe DeSoto Parish Police Jury's management, the Louisiana Legislative Auditor, and interested state and federal agencies and is not intended to be and should not be used by anyone other than these specified parties. However, under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.



87


Eddie G. Johnson, CPA - A Professional Corporation (1927-1996)

Mark D. Thomas, CPA - A Professional Corporation Roger M. Cunningham, CPA - A Professional Corporation Jessica H. Broadway, CPA - A Professional Corporation Ryan E. Todtenbier, CPA - A Professional Corporation

321 Bienville Street Natchitoches, Louisiana 71457

(318)352-3652 Fax (318) 352-4447

REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE

IN ACCORDANCE WITH OMB CIRCULAR A-133

To the Jury Members ofthe DeSoto Parish Police Juiy

Compliance

We have audited the compliance of the DeSoto Parish Police Jury with the types of compliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on each of the DeSoto Parish Police Jury's major federal programs for the year ended December 31, 2011. The DeSoto Parish Police Jury's major federal programs are identified in the summary of auditor's results section ofthe accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility ofthe DeSoto Parish Police Jury's management. Our responsibility is to express an opinion on the DeSoto Parish Police Jury's compliance based on our audit.

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

As described in item 11-02 in the accompanying schedule of findings and questioned costs, the DeSoto Parish Police Jury did not comply with requirements regarding financial reporting that is applicable to its Section 8 Housing Choice Vouchers. Compliance with such requirements is necessary, in our opinion, for DeSoto Parish Police Jury to comply with the requirements applicable to that program.

Members of AICPA Govemmental Audit Quality Center

Members of AICPA Members of Society of Louisiana CPA's

88

In our opinion, except for the noncompliance described in the preceding paragraph, the DeSoto Parish Police Jury complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2011.

Intemal Control over Compliance

The management ofthe DeSoto Parish Police Jury is responsible for establishing and maintaining effective intemal control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the DeSoto Parish Police Jury's intemal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on intemal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of intemal control over compliance. Accordingly, we do not express an opinion on the effectiveness ofthe DeSoto Parish Police Jury's intemal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of perfonning their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in intemal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.

Our consideration of intemal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in intemal control that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in intemal control over compliance that we consider to be material weaknesses, as defined above.

DeSoto Parish Police Jury's response to the finding identified in our audit is described in the accompanying schedule of findings and questioned costs. We did not audit the DeSoto Parish Police Jury's response and, accordingly, we express no opinion on the response.

This report is intended solely for the information and use of management, others within the organization. Police Jury members, federal awarding agencies, and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. However, under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.

Johviôm Thomas6r CiA^wUvi ham/, CPA'y




Schedule of Findings and Questioned Costs Year Ended December 31, 2011

A. Summary of Audit Results

The following summarize the audit results in accordance with OMB Circular A-133-.

Financial Statements:

1. The Auditor's report expresses an unqualified opinion on the primary govenunent's govemmental activifies, business type activities, each major fund, and the aggregate remaining fund informafion and expresses an adverse opinion on the missing aggregate discretely presented component unit opinion unit.

2. The Report on Intemal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards reports no reportable conditions related to intemal control over financial reporting.

3. The Report on Intemal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards reports one condition of noncompliance material to the financial statements.

4. Management's Summary Schedule of Prior Audit Findings is included in the financial statements.

Federal Awards:

5. The Independent Auditor's Report on Compliance with Requirements that Could Have a Direct and Material Effect on Each Major Program and on Intemal Control Over Compliance in Accordance with OMB Circular A-133 expresses an unqualified opinion related lo intemal control.

6. The Independent Auditor's Report on Compliance with Requirements that Could Have a Direct and Material Effect on Each Major Program and on Intemal Control Over Compliance in Accordance with OMB Circular A-133 expresses a qualified opinion related to compliance.

7. The Independent Auditor's Report on Compliance with Requirements that Could Have a Direct and Material Effect on Each Major Program and on Intemal Control Over Compliance in Accordance with OMB Circular A-133 reports one finding required to be reported in accordance with Circular A-133, Section 510(a).

8. Idenfification of major programs:

• CFDA #17.258,17.259, and 17.260 - Workforce Investment Act Cluster • CFDA #14.871 - Low-Income Housing Assistance Program • CFDA #93.568 - Low Income Energy Assistance Program • CFDA #17.245 - Trade Adjustment Assistance Integration • CFDA #81.042 - Weatherization Assistance for Low Income Persons

9. The threshold for disfinguishing between Type A and Type B programs was $300,000.

10. The DeSoto Parish Police Jury does not qualify as a low-risk Auditee.

90


Schedule of Findings and Questioned Costs Year Ended December 31, 2011

B. FINDINGS IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The following finding relates to the financial statements and is required to be reported in accordance with Government Auditing Standards.

Compliance-

11-01 Public Bid Law

Criteria - Louisiana Revised Statutes (LSA-R.S.) 38:2211-2296 requires that all public works projects costing more than $150,000 be subject to the Public Bid Law.

Condition - During the year ended December 31, 2011, the Jury entered into an agreement with a road constmction company to haul and spread asphah on several parish roads. The company was paid $1,126,047 for this work. Since the total project exceeded $150,000, the Jury should have used the Public Bid Law requirements to award this project, but failed to do so.

Effect - The Jury is not in compliance with Louisiana Revised Statutes conceming bid procurement.

Recommendation - The Jury should adhere to its policies and should ensure that all public works with costs that exceed $150,000 are awarded through the bid process.

Management Response -When the project began, the Parish Administrator obtmned quotes for the hauling and spreading ofthe asphalt. As the jobs grew, he confinued to use the same contractor in order to expedite the repairs. Management agrees with the finding and is currently complying with the bid requirement.

C. FINDINGS AND QUESTIONED COSTS FOR MAJOR FEDERAL AWARDS PROGRAMS

The following finding relates to the major federal programs and is required to be reported in accordance with OMB A-133.

Compliance-

11-02 Financial Reporting

Criteria - The Uniform Financial Reporting Standards require Section 8 Housing Choice Vouchers to submit fimely GAAP-based unaudited financial information electronically to HUD.

Condition - For the years ended December 31, 2010 and 2011, the Jury failed to submit fimely GAAP-based unaudited financial informafion electronically to HUD.

Efi ect - The Jury is not in compliance with the Uniform Financial Reporting standards conceming financial reporting.

Recommendation - The Jury should adhere to the standards required by the Office of Management and Budget.

Management Response - The reports will be submitted for 2010 and 2011 in order to be in compliance and will be submitted as required in the fiiture.

91


Mansêment's Summary Schedule of Prior Audit Findings Year Ended December 31,2011

COMPLIANCE:

10-1

Condition - The Police Jury's annual financial audit was not completed and filed with the Louisiana Legislative Auditor on or before June 30,2011.

Current Status - For the year ended December 31,2011, this condition was cleared.

10-2

Condition - The total actual revenues and other sources within the WIA Fund and the General Fund failed to meet total budgeted revenues and other sources by five percent or more. The total actual expenditures and other uses within the WIA Fund and the Solid Waste Fund exceeded the total budgeted expenditures and other uses by five percent or more.

Current Status - For the year ended December 31, 2011, this condition was cleared.

10-3

Condition - During 2010, the Police Jury discovered a misappropriafion of public funds.


10-4

Condition - As of December 31, 2010, the Police Jury had $194,632 deposited with Merrill Lynch in cash/money accounts.


10-5

Condition - As of December 31, 2010, the Police Jury's deposits with financial institufions were not fiilly protected fi-om loss by FDIC insurance and the pledge of collateralizing securities.


10-6

Condition - Parish fiinds were provided to another entity without a cooperative endeavor agreement being executed.


92


Management's Summary Schedule of Prior Audit Findings Year Ended December 31, 2011

10-7

Condition - The fair market value of materials and labor provided to the Police Jury by third parties during 2010 was not documented and retained.


10-8

Condition - As of December 31,2010, securities with a fair market value of $22,175,575 were maintained in management accounts with a national brokerage firm.


93

Documents

Primary Government Financial Statements