Ouachita Parish Sheriff

Ouachita Parish Sheriff,
Ex-Ofiicio Tax Collector
Monroe, Louisiana
Basic Financial Statement
With Independent Auditors' Report
As of June 30,2013
Under provisions of state law, this report is a public
document-A copy of the report has been submitted to
the entity and other appropriate public officials, The
report is available for public inspection at the Baton
Rouge office of the Legislative Auditor and. where
appropriate, at the office of the parish clerk of court.
Release Date
JUN 2 5 20H
OUACHITA PARISH SHERIFF
EX-OFFICIO TAX COLLECTOR
MONROE, LOUISIANA
BASIC FINANCIAL STATEMENT
WITH INDEPENDENT AUDITORS' REPORT
AS OF JUNE 30,2013
TABLE OF CONTENTS
Statement
Page
1
Independent Auditors' Report
Required SupplemeDtal Information:
Management's Discussion and Analysis
Basic Financial Statements:
Statement of Assets and Liabilities - Modified Cash Basis
Notes to the Financial Statements
Schedule
Page
Supplemental Information:
Schedule of Collections, Settlements,
And Unsettled Balances
II
Schedule of Assessed Taxes, Collections,
And Uncollected Balances
13
Schedule of Cash on Hand in Tax Collector Account
14
Affidavit
15
independent Auditors' Report Required by
Government Auditing Standards:
Independent Auditors' Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit ofPinancial Statements Performed in Accordance with
Government Auditing Standards
16
Schedule of Findings and Responses
18
Summary Schedule of Prior Audit Findings
19
Management Letter
21
LITTLE & ASSOCIATES LLC
CERTIFIED PUBUC ACCOUNTANTS
Wm. TODD UTUE, CPA
lodependeot Auditors* Report
Honorable Jay Russell
Ouachita Parish Sheriff,
Ex-Officio Tax Collector
Monroe, Louisiana
Report 00 the Financial Statements
We have audited the accompanying financial statement of the aggregate fund information of the
Ouachita Parish Sheriff, Ex-Officio Tax Collector (the "Tax Collector") as of June 30, 2013, and
the related notes to the financial statements, which collectively comprise the Tax Collector's
basic financial statement as listed in the Table of Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of intemal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance vrith 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 of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers intemal control relevant to the entity's preparation and fair presentation of the financial
PHONE (318) 361-9600
•
FAX (318) 361-9620
•
805 NORTH 31" STREET
•
MONROE, LA 71201
MAIUNQ ADDRESS: P. O. BOX 4058
•
MONROE. LA 71211-4058
statemeDts in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's intemai control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accoimting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
As discussed in Note 1, the Ouachita Parish Sheriff is the Ex-Officio Tax Collector for the
various taxing bodies within Ouachita Parish, and the accompanying financial statement presents
information only on his activities as parish tax collector. Furthermore, the Ouachita Parish
Sheriff, Ex-OfTicio Tax Collector prepares its financial statements on the modified cash basis,
which is a comprehensive basis of accounting other than U. S. generally accepted accounting
principles.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position - modified cash basis of the aggregate fund information of the
Ouachita Parish Sheriff, Ex-Officio Tax Collector as of June 30, 2013, in conformity with the
basis of accounting described in Note 1.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on pages 4-5 be presented to supplement the basic
financial statements. Such information, although not a part of the basic fmancial statements, is
required by the Governmental Accoimting Standards Board who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with the 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 fmancial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Ouachita Parish Sheriff, Ex-Officio Tax Collector's financial
statements. The Schedule of Collections, Settlements, and Unsettled Balances, the Schedule of
Assessed Taxes, Collections, and Uncollected Balances, the Schedule of Cash on Hand in Tax
Collector Account, and the Affidavit are presented for purposes of additional analysis and are not
a required part of the financial statements. All taxes collected by the Ouachita Parish Sheriff, ExOfficio Tax Collector's office are ad valorem taxes.
The Schedule of Collections, Settlements, and Unsettled Balances, the Schedule of Assessed
Taxes, Collections, and Uncollected Balances, the Schedule of Cash on Hand in the Tax
Collector Account, and the Affidavit is the responsibility of management and was derived from
and relates directly to the underlying accounting and other records used to prepare the financial
statements. Such 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 underlying 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 Schedule of Collections, Settlements, and Unsettled Balances, the
Schedule of Assessed Taxes, Collections, and Uncollected Balances and the Affidavit is fairly
stated in all material respects in relation to the financial statements as a whole.
Other Reporting Required by Government Anditing Standards
In accordance with Government Auditing Standards^ we have also issued our report dated
December 19, 2013, on our consideration of Ouachita Parish Sheritf, Ex-Officio Tax Collector's
internal 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 internal control over financial reporting and
compliance and the results of that testing, and iK)t to provide an opinion on the internal control
over financial reporting or on compliance. That report is an integral part of an audit performed
in accordance with Government Auditing Standards in considering Ouachita Parish Sheriff, ExOfficio Tax Collector's internal control over financial reporting and compliance.
Monroe, Louisiana
December 19,2013
Management*s Discussion and Analysis
OUACHITA PARISH SHERIFF,
EX OFFICIO TAX COLLECTOR
MANAGEMENT'S DISCUSSION AND ANALYSIS
Our discussion and analysis of the Tax Collector Agency Fund of the Ouachita Parish Sheriff, ExOfficio Tax Collector (the "Tax Collector") provides an overview of the Tax Collector's activities
for the year ended June 30, 2013. Please read it in conjunction v^ith the Tax Collector's financial
statement which is on page 6.
FINANCIAL HIGHLIGHTS
• The Tax Collector Agency Fund's primary asset at June 30, 2013, was cash in the amount of
$1,065,602 of which $29,513 vras attributable to protest taxes.
• The Tax Collector Agency Fund's liabilities consisted of funds to be distributed in July 2013
of $1,031,260, $8,377 due to the Ouachita Parish Sheriffs general fund, and protest taxes
and other liabilities totaling $25,965 to be settled at later dates.
USING THIS ANNUAL REPORT
This annual report consists of a financial statement, the Statement of Assets and Liabilities Modified Cash Basis, which provides information about the assets and obligations of the Tax
Collector Agency Fund as a whole.
REPORTING THE TAX COLLECTOR AND THE TAX COLLECTOR'S FUND
Fund Financial Statement
The fund financial statement provides detailed information about the Tax Collector's agency funds.
Only the Fiduciary Fund Type - Agency Fund (Tax Collector Agency Fund) existed as of June 30,
2013. Its assets consisted of deposits in local financial institutions, and its liabilities consisted of
accounts payable and deposits due governmental agencies, including but not limited to, the Tensas
Basin Levee District, Ouachita Parish Police Jury, G.B. Cooley Hospital, West Ouachita Sewerage,
East Ouachita Recreation District, Louisiana Tax Commission, Fourth Judicial District, North
Louisiana Crime Lab, Ouachita Parish School Board, City of Monroe School Board, Ouachita Parish
Tax Assessor, and Ouachita Parish Sheriff.
The Tax Collector Agency Fund is reported using an accounting method called the modified cash
basis of accounting. Under the modified cash basis of accounting, collections are recognized when
received and distributions are recognized when deemed to be payable.
THE TAX COLLECTOR AS A WHOLE
The Tax Collector serves as an agent for the collection of ad valorem taxes, fines, forfeitures, and
other receipts, which are payable to various governmental agencies. As a result, the Tax Collector
does not have any net assets.
ECONOMIC FACTORS
The operations of the Tax Collector's office are funded entirely by the Ouachita Parish Sheriffs
Office. No changes are expected in the operations of the Tax Collector's office for the year ending
June 30, 2014.
CONTACTING THE TAX COLLECTOR'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens and taxpayers with a general overview of the
Tax Collector's finances and to show the Tax Collector's accountability for the money it receives. If
you have questions about this report or need additional rinancial information, contact the Ouachita
Parish Sheriff Office at P.O. Box 1803, Monroe, Louisiana.
Jay Russell
Ouachita Parish Sheriff &
Tax Collector
Statement A
OUACHITA PARISH SHERIFF,
EX-OFFICIO TAX COLLECTOR
STATEMENT OF ASSETS AND LIABILITIES - MODIFIED CASH BASIS
JUNE 30,2013
Agency
Funds
ASSETS
Cash
$ 1,065,602
$ 1.065.602
Total Assets
LIABILITIES
Liabilities:
Accounts Payable Clearing
Due to Sheriffs General Fund
Due To Taxing Bodies and Others
$ 1,031,260
8,377
25,965
$ 1,065.602
Total Liabilities
The accompanying notes are an integral part of this statement.
6
Notes to the Financial Statements
OUACHITA PARISH SHERIFF,
EX-OFFICIO TAX COLLECTOR
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,2013
INTRODUCTION
As provided by Article V, Section 27 of the Louisiana Constitution of 1974, the Sheriff of
Ouachita Parish is the Ex-Officio Tax Collector (the "Tax Collector") of the parish and is
responsible for the collection and distribution of ad valorem taxes, fines and costs, bond forfeitures
and fees, and state revenue sharing funds.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.
BASIS OF PRESENTATION
The Govemmental Accounting Standards Board (the "GASH") is the accepted standardsetting body for establishing govemmental accounting and financial reporting principles. The
accompanying basic financial statement, while prepared on the modified cash basis of
accounting, has been presented following the guidelines of GASB Statement No. 34, Basic
Financial Statements-and Management's Discussion and Analysis—for State and Local
Governments (the "Statement"), which was unanimously approved in June 1999 by the
Govemmental Accounting Standards Board.
B.
REPORTING ENTITY
Louisiana Revised Statute 24:517(D) requires the accounts of each parish tax collector to be
audited annually. Accordingly, the accompanying financial statement reflects the assets and
liabilities of the Ouachita Parish Sheriff related only to his responsibility as Ex-Officio Tax
Collector for Ouachita Parish. Amounts included in this financial statement are also included in
the Ouachita Parish Sheriffs annual financial statements.
C.
FUND ACCOUNTING
The Tax Collector uses funds to maintain its financial records during the year. Fund
accounting is designed to demonstrate legal compliance and to aid management by segregating
transactions related to certain Tax Collector functions and activities. A fiind is defined as a
separate fiscal and accounting entity with a self-balancing set of accounts.
Fiduciary Funds
The reporting for fiduciary funds focuses on net assets and changes in net assets. The only
fund accounted for in this category by the Tax Collector is the Tax Collector Agency Fund. The
agency fund is used as a depository for the Tax Collector's collection of ad valorem taxes, fines
and costs, bond forfeitures and fees, and state revenue sharing funds. Disbursements fi-om the
fund are made in the manner prescribed by law. These funds are custodial in nature (assets equal
liabilities) and do not involve measurement of the results of operations. Consequently, the
^ency funds have no measurement focus.
OUACHITA PARISH SHERIFF,
EX-OFFICIO TAX COLLECTOR
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,2013
Fidaciary Funds (Continued)
The Tax Collector collects and disburses ad valorem taxes for municipalities including the
City of Monroe, City of West Monroe, Town of Sterlington, and Town of Richwood for a cost
based fee. They began collecting and disbursing ad valorem taxes for the years of 2011 for the
City of Monroe, City of West Monroe, and the Town of Richwood, and for the years of 2010 for
the Town of Sterlington. The Tax Collector also collects and disburses various fees assessed to
taxpayers, fines, and court costs for the City of Monroe, Town of Sterlington, and the Town of
Richwood.
D.
BASIS OF ACCOUNTING
The accounts of the parish tax collector are established to reflect the collections imposed by
law, the distributions pursuant to such law, and the unsettled balances due various tax recipient
bodies and others. The accompanying financial statement has been prepared on the modified
cash basis of accounting, with collections recognized when received and distributions recognized
when deemed to be payable.
E.
CASH
State law authorizes the sheriff to deposit tax collections in interest bearing accounts with a
bank domiciled in the parish where the fiinds are collected. Further, the sheriff may invest these
deposits in certificates of deposit or other investments permitted by law.
2. DEPOSITS AND CUSTODIAL CREDIT RISK
Deposits are stated at cost, which approximates fair value. Under state law, these deposits, or the
resulting bank balances, must be secured by federal deposit insurance or the pledge of securities.
The fair value of the pledged securities , plus the federal deposit insurance must at all times equal the
amount on deposit with the fiscal agent. 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 sheriff that the fiscal agent bank has failed to pay deposited funds upon demand.
At June 30, 2013, the Tax Collector's carrying amount of deposits (book balances) totaled
$1,065,602 as follows:
Demand deposits
$1,036,089
Certificates of deposits
29.513
Total
Custodial credit risk is the risk that in the event of a bank failure, the government's deposits may
not be returned to it. The Tax Collector does not have a policy for custodial credit risk. As of June
30, 2013, the Tax Collector's bank balances totaled $1,037,687. The Tax Collector did not have any
deposits exposed to custodial credit risk.
OUACHITA PARISH SHERIFF,
EX-OFFICIO TAX COLLECTOR
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,2013
3. CHANGES IN AGENCY FUND - DUE TO TAXING BODIES AND OTHERS
A summary of changes in agency fund deposits due to taxing bodies and others for the year
ended June 30,2013, is as follows:
Balance at June 30,2012
Additions
Reductions
Balance at June 30,2013
$
2,919,197
108,637,791
(111,531,023)
$
25,965
4. TAXES PAID UNDER PROTEST
Louisiana Revised Statute 47:1576 provides that taxpayers, at the time of payment of all taxes
due, may give notice to the tax collector of their intention to file suit for recovery of all or a portion
of the total taxes paid. Upon receipt of this notice, the amount paid shall be segregated and held by
the tax collector for a period of thirty days. If suit is filed within the thirty-day period for recovery
of such amounts, the funds segregated shall be held pending outcome of the suit. If the taxpayer
prevails, the tax collector shall refund the amount due, with interest from the dale the funds were
received by the tax collector. The following is a summary of the transactions relating to protested
taxes:
Tax Roll
1992
1993
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Balance
June 30,
2012
$
Additions
Taxes
Interest
7,434
13,170
56,302
283,657
314,532
262,910
250,830
243,000
264,531
298,100
924,252
$
-
1,367,286
10
16
12
222
801
162
1,449
53
5,669
574
547
348
$2,918,718
$ 1,367,286
$ 9,863
$
-
Reductions
Balance
June 30,
2013
$
$
-
(56,314)
(283,879)
(306,450)
(263,072)
(252,279)
(243,053)
(270,200)
(298,674)
(924,799)
(1,367,634)
$(4,266,354)
7,444
13,186
-
8,883
-
$ 29,513
OUACHITA PARISH SHERIFF,
EX-OFFICIO TAX COLLECTOR
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,2013
5. SUBSEQUENT EVENTS
After the results of the criminal investigation by the Ouachita Parish Sheriffs Office and the Tax
Collector initiated investigative audit by the Legislative Auditor, the Tax Collector filed charges
against a former employee for thefl of fines and costs collected. Subsequent to year end,
November 2013, the former employee was convicted and ordered to make restitution payments
in the amount of $30,000. The former employee also surrendered her pension in the amount of
$23,458.29, which was disbursed to agencies as if they were collected at the time of theft. All
future payments will be disbursed to agencies in the same manner.
The Tax Collector has evaluated subsequent events throu^ December 19, 2013, the date which
the financial statements were available for issue.
10
Supplemental Information
Schedule 1
OUACHITA PARISH SHERIFF,
EX-OFFICIO TAX COLLECTOR
Schedule of CollectioDs, Settlements,
and Unsettled Balances
For the Year Ended June 30,2013
DUE TO TAXING BODIES
AND OTHERS - BEGINNING
OF YEAR
$
COLLECTIONS
Fines, Bond Forfeitures and Costs
Ad Valorem Taxes
Prior Year Taxes
Delinquent Tax Collection Fees
In Lieu of Taxes
State Revenue Sharing
Protest taxes
Interest on:
Demand Deposits
Protested Taxes Held in Escrow
Delinquent Taxes
Deeds, Advertising, Notices, etc.
Total Collections
Loii
..J.
2,919,197
6,830,588
96,176,869
391,686
584,273
604,178
2,711,861
1,078,872
182,052
6,120
8,370
62,922
108,637,791
13,470
225
2,014,009
68,431
19,515
590
10
21,768
58,209
55,083
of Agriculture and Forestry
and Fisheries
nsas
Law Enforcement
commission
Wildiire
autifiil
ent of Public Safety
CMIS
12,861,347
34,125,265
36,787,621
1,809,139
366,670
1,312,959
1,385,266
12,508
Fund
IHolicerJuiy
School Boards
Assessor
Clerk of Court
East Ouachita Recreation District
G.B. Cooley Hospital
West Ouachita Sewerage District
II
Schedule 1 (Continued)
OUACHITA PARISH SHERIFF,
EX-OFFICIO TAX COLLECTOR
Schedule of Collections, Settlements,
and Unsettled Balances
For the Year Ended June 30,2013
Fourth Judicial District:
District Attorney
Indigent Defender Board
District Court
Judicial Expense Fund
North Louisiana Criminalistics Laboratory
Delinquent Tax Collection Costs
Refund of Taxes, Etc.
Pension Funds
Crime Stoppers
Municipalities
Total Distributions
968,588
976,941
962,379
183,608
367,335
584,262
1,972,701
2,501,165
36,717
12,065,242
111,531,023
INCREASE (DECREASE) IN DUE TO TAXING BODIES AND OTHERS
DUE TO TAXING BODIES AND
OTHERS - END OF YEAR
(2,893,232)
25,965
12
Schedule 2
OUACHITA PARISH SHERIFF,
EX-OFFICIO TAX COLLECTOR
Schedule of Assessed Taxes, Collections,
and Uncollected Balances
For the Year Ended June 30,2013
TAXING AUTHORITY
Law Enforcement
Parish Schools - Parishwlde
Parish Schools - School Maintenance/Operations
Parish Schools - East Ouachita School Bond
Monroe City Schools - Maint/Qper/Add Supp
Monroe City Schools - Bonds
Parish General Fund
Parish Wide - Library Maintenance
Parish Wide - Health Unit
Parish Wide - Mosquito Abatement
Parish Wide • GB Cooley Hospital
Parish Wide - Detention Home
Parish Wide - Jail Maintenance and Improvements
Parish Wide - Assessment District
Municipal - Sterlinqton General Fund
Forestry Fee / Per Acre
Tertsas Basin Levee District
Parish Fire Maintenance
East Ouachita Recreation Maintenance
Road Light District Fees
LA Tax Commission
City of Monroe
City of West Monroe
MunidDat - Richwood General and Maintenance
TOTAL
NOTE:
TAXES ASSESSED
$
11.302.247.16
3.051.275.11
14,225.520.34
6.635.249.61
9,511.652.10
3.442,506.32
2.878.346.22
6.971.737.40
690,657.97
1.483,994.26
1.343.937.99
2.463.900.30
8.586.329.47
1.698.620.22
85.779.22
13.459.40
2.008.706.54
8.760.265.45
1,360.127.72
135,801.75
17.542.16
10,606.489.55
1.210.741.06
78.304.71
S
98.563.192.03
TAX ADJUSTMENTS
S
(175.327.091
(56.401.301
(262.951,241
(269.499.361
(99.181.411
(35.896.271
(51.430.301
(108.149.681
(10.713.631
(23.019.821
(20.848,091
(38.221.441
(133,196.351
(26,349.591
(301.011
(10.461
(39.232.801
(196.172,891
(65.425.881
$
.
$
(90.285.751
(4.345,701
m&A7)
(1.707,340.531
$
TAXES DUE
11.126.920.07
2.994.873.81
13,962,569.10
6.365.750.25
9.412.470.69
3.406.610.05
2.826.915.92
6.863.587.72
679.944.34
1.460.974.44
1,323.089.90
2.425.078.86
8.453.133.12
1.672.270.63
85.478.21
13.448.94
1.969.473.74
8,564.092.56
1.294.701.84
135.801.75
17.542.16
10.516.203.80
1.206.395.36
77.918.24
96,855,845,50
TAXES COLLECTED
$
11.048.794.73
2.975.836.09
13.873.814.63
6,320.850.21
9.335,766.23
3.378.848.93
2,807.189.65
8.815.396.35
675,169.89
1.450.715.45
1.313.800,48
2,408,647.77
8.393.781.92
1.060.529.08
85,187.42
13.445.37
1.954.639.66
8.505.684.79
1.286.703.65
135.765.00
17.515.67
10,439.976.96
1.201.206.59
77.002.05
$
96.176,868.57
UNCOLLECTED
TAXES
S
78.125.34
19.037.72
88.754.47
44.900.04
76.704.46
27.701.12
19.726.27
48.191.37
4.774.45
10,258,99
9,289.42
17.031.09
59.351.20
11,741.55
290.79
3.57
14,834.08
58.407.77
7.998.19
36.75
26.49
76.226.84
5,188.77
316.19
$
678,976.93
Ail uncollected taxes are due to the liable party refusing to pay. The Ouadiita Parish Tax Collector uses Archon, a
collection agency, to collect delinquent taxes, at no cost to the taxpayers. All fees assessed by Archon are charged to
the liable party and not the Tax Collector.
Schedule 3
OUACHITA PARISH SHERIFF,
EX-OFFICIO TAX COLLECTOR
Cash on Hand in
Tax Collector Acconnt
For the Year Ended Jnne 30,2013
Cash on hand
1,036,089.00
14
STATE OF LOUISIANA, PARISH OF OUACHITA
AFFIDAVIT
JAY RUSSELL, SHERIFF OF OUACHITA PARISH
BEFORE ME, Ihe undersigned authority, personally cante and appeared, Jay Russell, the
sheriff of Ouachita Parish, State of Louisiana, who after being duly sworn, deposed and
said:
The following infomiation is true and correct:
$1,036,089 is the amount of cash on hand in the tax collector account on June
30, 2013.
He further deposed and said:
All itemized statements of the amount of taxes collected for tax year 2012, by
taxing authority, are true and correct
All itemized statements of ail tax^ assessed and uncollected, which indicate
the reasons for the failure to collect by taxing authority, are true and
correct
Jf^Rus^, Sheriff of
Ouachita Parish
SWORN to and subscribed before me, Notary, this
2013, in my office in
P^vof DM/I/MJMA. .
. Louisiana.
(Signature)
P.(innit.
//ae-(Print).# llfiiKi 7</
Notary Public
(Commission)
LITTLE & ASSOCIATES LLC
CERTIFIED PUBLIC ACCOUNTANTS
Wm. TODD LITTUE, CPA
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
Independent Auditor's Report
Honorable Jay Russell,
Ouachita Parish Sheriff,
Ex-Officio Tax Collector
Monroe, Louisiana
We have audited, in accordance with the 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 of the United States, the financial
statements of the aggregate ftmd information of the Ouachita Parish Sheriff, Ex-Officio Tax
Collector, as of and for the year ended June 30, 2013, and the related notes to the financial
statements, which collectively comprise the Ouachita Parish Sheriff, Ex-Officio Tax Collector's
basic financial statements, and have issued our report thereon dated December 19,2013.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Ouachita Parish
Sheriff, Ex-Officio Tax Collector's internal control over financial reporting (internal control) to
determine the audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of Ouachita Parish Sheriff, Ex-Officio Tax Collector's internal
control. Accordingly, we do not express an opinion on the effectiveness of the Ouachita Parish
Sheriff, Ex-Officio Tax Collector's internal control.
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 internal control, such that there is a reasonable
possibility that a material misstatement of Ouachita Parish Sheriff, Ex-Officio Tax Collector's
financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is
less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
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PHONE (318) 3S1-90OO
•
FAX (318) 381-9620
•
805 NORTH 31**^ STREET
•
MONROE, LA71201
MAILING ADDRESS: P. O, BOX 4058
•
MONROE. LA 71211-4058
Our consideration of internal control was for the limited purpose described in die first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Ouachita Parish Sheriff, Ex-0£ficio
Tax Collector's financial statement is free from 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 material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not exfH^ss such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
We noted certain matters that we reported to management of the Ouachita Parish Sheriff, ExOfficio Tax Collector in a separate letter dated December 19, 2013.
Purpose of thb Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the Ouachita Parish Sheriff, Ex-Officio Tax Collector's internal control or on compliance. This
report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Ouachita Parish Sheriff, Ex-Officio Tax Collector's internal control
and compliance. Accordingly, this communication is not suitable for any other purpose.
Monroe, Louisiana
December 19,2013
17
OUACHITA PARISH SHERIFF,
EX-OFFICrO TAX COLLECTOR
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED JUNE 30.2013
SECTION I - SUMMARY OF AUDIT RESULTS
Financial Statements
Unqualified
Type of auditors' report issued:
Internal control over financial reporting:
• Material weakness(es) identified?
• Significant dericiency(ies) identified?
Noncompliance material to financial statements noted?
yes
yes
X no
X none reported
yes
X no
Federal A wards
Internal control over major programs:
None
SECTION 11 - FINANCIAL STATEMENT FINDINGS
None reported.
SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
None reported.
18
OUACHITA PARISH SHERIFF,
EX-OFFICIO TAX COLLECTOR
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE YEAR ENDED JUNE 30, 2013
In connection with our audit of the financial statement of the Ouachita Parish Sheriff, ExOfBcio Tax Collector as of June 30,2013, in accordance with the Louisiana
Governmental Audit Guide, we also have reviewed the status of prior year findings. The
following presents the status of those findings.
FINDINGS - FINANCIAL STATEMENTS AUDIT
The Legislative Auditor performed an Investigative Audit in September 2012 and this is
their finding.
Finding 2012-01 - Cash Collections Not Deposited
Condition and Criteria: Records of the Ouachita Parish SherifTs Oflice (OPSO) and the
Louisiana Depaitment of Public Safety indicate that fiom June 23, 2010, throu^ October 28,
2011, former OPSO cashier, failed to deposit cash collections of fines, fees, and court costs
payments totaling at least $50,387 into the OPSO bank account. These cash collections represent
amounts owed by offenders, but they were wisely recorded as credits for time served in jail rather
than being properly recorded as credits for cash collected from offenders. This scheme allowed
cash to be removed from the daily collections without detection.
Response: OPSO will employ a two-pronged approach to address these recommendations.
Items 1, 5, and 6 will be addressed procedurally, through policy development. Items 2, 3, and 4
will be addressed through software development currently underway.
Responses Based on Policy & Procedure Development
The LLA first recommends the development of written procedures for the collections of fines and
costs, as a means of ensuring consistency and accountability. OPSO now has a comprehensive
written policy in place that details all aspects related to the collection of court fines and costs.
The policy has been approved by the Administration Division and copies are kept in the Fines &
Costs office, as well as the Division Commander's desk.
in regards to Item 5, the LLA recommends a separation of duties of who collects, balances, and
prepares the deposit for the fines drawer on a daily basis. Indeed, it is now standard procedure
that these tasks are to be completed b separate staff members. Additionally, this is reflected in
the aforementioned written procedure manual.
In Item 6, the LLA also recommends written approval of jail-time credits, both time served and
Sheriff Good Time, by the Tax Division Commander. Accordingly, a procedure has been so
designed in which the division supervisor reviews and initials time served calculations which are
also filed in the day's business documentation. This procedure is also documented in the
procedure manual.
Responses Based on Software Management & Development
In July 2012, the Sheriffs Office signed a professional services contract with a software
development firm to create an integrated data management system that would accomplish inter19
OUACHITA PARISH SHERIFF,
EX-OFFICIO TAX COLLECTOR
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE YEAR ENDED JUNE 30, 2013
agency data sharing as well as comprehensive data management projects within the Sheriffs
Office. One major focus of this initiative includes Fines and Costs process. This software
initiative will effectively address the LLA^s three remaining recommendations.
In items 2 and 3, the LLA recommends individual logs-on and an edit log for the Fines & Costs
software. In response, individual logs-on for the current AS 400 have been issued to the staff
members. However, upon the development of the new software, each division employee will
have a separate login and collection activity will be logged into an edit log so individual financial
transactions can be traced to unique users. For Sheriff Good-Time releases, the jail will fax/email
approvals which are then signed/authorized by a supervisor (someone other than person entering
data). These approvals are then filed with each day's deposit/business documents.
The new software project will also address the integration recommendation listed in Item 4. The
software will include the development of an electric docket create by the District Attorney's
Office which would be auto-populated on the Court Bailiffs computer prior to court. The Bailiff
will enter each case disposition/settlement in the software during court in real time. This
information would be instantly available to Tax Collector's Office, although it will not be
editable. Essentially, this software will completely eliminate the vulnerability characteristic of a
manual calculation process. Additionally, the new software will generate daily reports of credits
given against data elements used for calculations and variance will be investigated by the Tax
Division supervisor.
Status: Cleared
Narrative Action: Former OPSO cashier was arrested in 2012 and has since been found guilty
and ordered to pay restitution in the amount of $30,000. Ms. Ford's pension in the amount of
$23,458.29 was surrendered to OPSO and these funds have been distributed to agencies as if they
were collected/distributed at the time of the theft.
Individual log-ins have been assigned for each employee collecting Fines/Costs. Written
procedures have been developed and segregation of duties for the collection, reconciliation and
depositing of funds has been completed. Any Credit for Time Served or Sheriff Good Time
requires written supervisor approval and each component of the calculation is reviewed prior to
credit given. Data Intention Software development has been a much slower process than
originally planned due to interfaces with multiple agencies. Design phase is complete and testing
has begun.
Report Period: June 30,2012
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LITTLE & ASSOCIATES ixc
CERTIFIED PUBLIC ACCOUNTANTS
Whi. TOOD LITTIE. CPA
December 19,2013
Ouachita Parish Sheriff,
Ex-Ofificio Tax Collector
Monroe, LA
In planning and performing our audit of the financial statements of Ouachita Parish
Sheriff, Ex-Officio Tax Collector as of and for the year ended June 30, 2013, in
accordance with auditing standards generally accepted in the United States of America,
we considered Ouachita Parish Sheriff, Ex-Ofificio Tax Collector's internal control over
financial reporting (internal control) as a basis for designing our audit procedures for the
purpose of expressing our opinion on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Ouachita Parish Sheriff, Ex-Officio Tax
Collector's internal control. Accordingly, we do not express an opinion on the
effectiveness of the Ouachita Parish Sheriff, Ex-Ofificio Tax Collector's internal control.
However, during our audit we became aware of a few matters that are opportunities for
strengthening internal controls and operating efficiency. The memorandum that
accompanies this letter summarizes our comments and suggestions regarding those
matters are included in ML-2013-01. We previously reported on the Ouachita Parish
Sheriff, Ex-Ofificio Tax Collector's internal control in our report dated December 19,
2013. This letter does not affect our report dated December 19, 2013, on the financial
statements of the Ouachita Parish Sheriff, Ex-Officio Tax Collector.
We will review the status of these conunents during our next audit engagement. We have
already discussed many of these comments and suggestions with various Ouachita Parish
Sheriff, Ex-Ofificio Tax Collector personnel, and we will be pleased to discuss them in
further detail at your convenience, to perform any additional study of these matters, or to
assist you in implementing the recommendations.
Sincerely,
Little & Associates, LLC
21
PHONE (318) 381-#600
•
FAX (318) 361-9620
•
806 NORTH 31" STREET
•
MONROE, lA 71201
MAILING ADDRESS: P. O. BOX 4056
•
MONROE. LA 71211-4066
ML-2013-01
Transfer and record convenience fee in a rimelv manner
The Ouachita Parish Sheriff, Ex-Officio Tax Collector did not record the convenience
fee, charged to process online payments, and did not transfer the fee balance in the
amount of $8,377 to the Sheriffs General Fund by the end of the fiscal year, ended June
30, 2013. We suggest the Tax Collector adopt the policy of recording and transferring
the fees due to the Sheriffs General Fund on a monthly basis. The adoption of a monthly
policy for monthly recording and transfer of the convenience fees will help ensure the
timeliness of the recording and transfer process.
Auditee Response and Plan:
OPSO began processing on-line payments in 2010 accepting both electronic checks and
credit card charges. A small convenience fee is charged to cover the costs incurred for
these transactions. Due to a discrepancy with individual credit card charges being
rejected these fund were not transferred to OPSO General Fund until all discrepancies
were reconciled which occuned after the fiscal year. Reconciliations of diese funds will
be completed by the end of the fiscal year and where possible on a monthly basis.
Person Responsible for Corrective Action:
Craig Rambin
300 St. John, Room 102
Monroe, LA 71201
22