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101*1 2M1M.22 RK 9-'39 ST. TAMMANY PARISH ASSESSOR Covington, Louisiana Basic Financial Statements and Independent Auditor's Report As of and for the Year Ended December 31, 2006 Under provisions of state law, this report is a public document Acopy 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

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  • 101*1

    2M1M.22 RK 9-'39

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Basic Financial Statementsand Independent Auditor's ReportAs of and for the Year Ended

    December 31, 2006

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

    Release Date

  • C O N T E N T S

    PageNo.

    Independent Auditor's Report 1

    Management's Discussion and Analysis 4

    Basic Financial Statements:

    Government-Wide Financial Statements:

    Statement of Net Assets 9Statement of Activities 10

    Fund Financial Statements (Governmental Funds):

    Balance Sheet 12Reconciliation of the Governmental Fund BalanceSheet to the Government-Wide Statement ofNet Assets 13

    Statement of Revenues, Expendituresand Changes in Fund Balance 14

    Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balance tothe Statement of Activities 15

    Notes to the Financial Statements 17

    Required Supplementary Information (RSI):

    Budgetary Comparison Schedule - General Fund 30

    Supplementary Information Schedule:

    Summary Schedule of Prior Year Audit Findingsand Corrective Action Plan for Current YearAudit Findings 32

    Other Report Required byGovernment Auditing Standards:

    Report on Internal Control over Financial Reportingand on Compliance and Other Matters Based on anAudit of Financial Statements Performed inAccordance with Government Auditing Standards 34

  • KEITH J. ROVIRACERTIFIED PUBLIC ACCOUNTANT

    3331 METAIRIEROADMETAIRIE, LA 70001-5297

    Fax (504)831-4042(504)831-4040 Email: ROVIRACPAfg.AOL.CQM

    INDEPENDENT AUDITOR'S REPORT

    Honorable Patricia Schwarz CoreSt. Tammany Parish AssessorCovington, Louisiana

    I have audited the accompanying basic financial statements ofthe St. Tammany Parish Assessor as of and for the year endedDecember 31, 2006, which collectively comprise the assessor'sbasic financial statements as listed in the table of contents.These basic financial statements are the responsibility of theSt. Tammany Parish Assessor. My responsibility is to express anopinion on these basic financial statements based on my audit.

    I conducted my audit in accordance with auditing standardsgenerally accepted in the United States of America and thestandards applicable to financial audits contained in theGovernment Auditing Standards, issued by the Comptroller Generalof the United States. Those standards require that I plan andperform the audit to obtain reasonable assurance about whether thebasic financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting theamounts and disclosures in the basic financial statements. Anaudit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating theoverall basic financial statement presentation. I believe that myaudit provides a reasonable basis for my opinion.

    In my opinion, the basic financial statements referred to abovepresent fairly, in all material respects, the financial position ofthe St. Tammany Parish Assessor as of December 31, 2006, and theresults of operations for the year then ended, in conformity withaccounting principles generally accepted in the United States ofAmerica.

  • In accordance with Government Auditing Standards, I have alsoissued a report dated June 6, 2007, on my consideration of theSt. Tammany Parish Assessor's internal control over financialreporting and my tests of its compliance with certain provisions oflaws, regulations and contracts. That report is an integral partof an audit performed in accordance with Government AuditingStandards and should be read in conjunction with this report inconsidering the results of my audit.

    The management's discussion and analysis and budgetary comparisoninformation as listed in the table of contents are not a requiredpart of the basic financial statements, but are supplementaryinformation required by accounting principles generally accepted inthe United States of America. I have applied certain limitedprocedures, which consisted principally of inquiries of managementregarding the methods of measurement and presentation of thesupplementary information. However, I did not audit theinformation, and express no opinion on it.

    My audit was prepared for the purpose of forming opinions on thefinancial statements that collectively comprise the assessor'sbasic financial statements. The supplementary informationschedules listed in the table of contents are presented forpurposes of additional analysis and are not a required part of thebasic financial statements of the St. Tammany Parish Assessor.Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and in myopinion is fairly stated in all material respects, in relation tothe basic financial statements taken as whole.

    Keith J. RoviraCertified Public Accountant

    June 6, 2007

  • MANAGEMENT'S DISCUSSION AND ANALYSIS

  • ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Management's Discussion and AnalysisAs of and for the Year Ended December 31, 2006

    The Management's Discussion and Analysis (MD&A) of the St. TammanyParish Assessor's financial performance presents a narrativeoverview and analysis of the assessor's financial activities forthe year ended December 31, 2006. This document focuses on thecurrent year's activities, resulting changes, and currently knownfacts. Please read this document in conjunction with theadditional information contained in the basic financial statements.The MD&A is an element of the new reporting model adopted by theGovernment Accounting Standards Board (GASB) in their Statement No.34, "Basic Financial Statements - and Management's Discussion andAnalysis - for State and Local Governments" issued June, 1999.Certain comparative information between the current year and prioryear has been presented in the MD&A.

    FINANCIAL HIGHLIGHTS

    The minimum requirements for financial reporting on the St. TammanyParish Assessor's office that was established by GASB No. 34 aredivided into the following sections:

    (a) Management's Discussion and Analysis(b) Basic Financial Statements(c) Required Supplementary Information (other than MD&A)

    Basic Financial Statements:

    The basic financial statements present information for the assessoras a whole, in a format designed to make the statements easier forthe reader to understand. The financial statements in this sectionare divided into the two following types:

    (1) Government-Wide Financial Statements, which include a Statementof Net Assets and a Statement of Activities. These statementspresent financial information for all activities of the assessorfrom an economic resources measurement focus using the accrualbasis of accounting and providing both short-term and long-terminformation about the assessor's overall financial status.

  • ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Management's Discussion and Analysis (Continued)As of and for the Year Ended December 31, 2006

    (2) Fund Financial Statements, which include a Balance Sheet and aStatement of Revenues, Expenses, and Changes in Fund Balance forthe General Fund (a governmental fund). These financial statementspresent information on the individual fund of the assessor allowingfor more detail. The current financial resources measurement focusand the accrual basis of accounting used to prepare thesestatements is dependent on the fund type. The assessor's onlygovernmental fund is the General Fund. The statements in thissection represent the short-term financing of general government.

    FINANCIAL ANALYSIS OF THE ENTITY

    Statement of Net AssetsAs of December 31, 2006 and 2005

    2006 2005

    Current assets $3,537,769 $3,135,320Capital assets 136.999 108.791

    Total Assets 3.674.768 3.244.111

    Liabilities 32.718 24.707

    Total Liabilities 32.718 24.707

    Net Assets;Invested in capital assets, net ofrelated debt 136,999 108,791

    Unrestricted 3.505.051 3.110.613

    Total Net Assets $3.642.050 $3,219.404

    The assessor does not have any "restricted" net assets. It doeshave "unrestricted" net assets, and those are net assets that donot have any limitations on what these amounts may be used for.

    Net assets of the assessor's office increased by $422,646 or 13.13%from December 31, 2005 to December 31, 2006. This increase is dueprimarily to increases in ad valorem tax revenue.

  • ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Management's Discussion and Analysis (Continued)As of and for the Year Ended December 31, 2006

    Statement of Revenues/ Expenditures andChanges in Fund Balance

    For the years ended December 31, 2006 and 2005

    2006 2005

    Revenues $2,708,933 $2,455,951Expenditures 2.314,495 2.314.354

    Net Change in Fund Balance $394,438 $141,597

    The assessor's total revenues increased by $252,982, or 1.0%, whichwas principally due to the increase in ad valorem taxes receivedduring the year. Total expenditures increased by $141 which isinsignificant to the overall presentation of these financialstatements.

    CAPITAL ASSET AND DEBT ADMINISTRATION

    At December 31, 2006, the assessor had $432,401 invested in capitalassets, including office furniture and equipment and autos. Thisamount represents the total original cost of the capital assets{before deducting accumulated depreciation). The table below listscapital assets and accumulated depreciation:

    Capital AssetsDecember 31, 2006 and 2005

    2006 2005

    Office furniture and equipment $365,092 $304,816Autos 67.309 44.787

    432,401 349,603Less: Accumulated depreciation (295.402) (240.812)

    Total capital assets, net ofaccumulated depreciation $136,999 $108,791

    Debt Administration:The assessor had no debt outstanding at year end.

  • ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Management's Discussion and Analysis (Continued)As of and for the Year Ended December 31, 2006

    ECONOMIC FACTORS AND NEXT YEAR'S BUDGET

    The assessor considered the following factors and indicators whensetting up next year's budget. These factors and indicatorsinclude: (1) revenues to be received from the collection of advalorem taxes and state revenue sharing; (2) additional salariesand related costs due to an increase in health care and othersalary related benefits and costs/ (3) other operating costs of theoffice incurred in the process of providing services to the public.The assessor expects that next year's revenues plus existingavailable net assets carried forward from the previous year will besufficient to cover expenses.

    CONTACTING THE ASSESSOR

    This financial report is designed to provide the citizens,taxpayers, customers, investors and creditors with a generaloverview of the assessor's finances, and to show the assessor'saccountability for the money it receives. If you have anyquestions about this report or need additional financialinformation, please contact , or Ms. Patricia S. Core, St. TammanyParish Assessor, St. Tammany Parish Courthouse, 701 North ColumbiaStreet, Covington, Louisiana 70433, or call the office at985-809-8180.

  • BASIC FINANCIAL STATEMENTS

    (GOVERNMENT-WIDE FINANCIAL STATEMENTS)

  • ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Statement of Net AssetsAs of December 31, 2006

    ASSETSCurrent Assets:Cash and cash equivalents {Note C) $379,360Investments (Note D) 529,339Revenues receivable:Ad valorem taxes 2,509,879State revenue sharing 87,786Other 31.405

    Total Current Assets 3.537,769

    Noncurrent AssetsCapital assets, net of depreciation (Note E) 136.999

    Total Noncurrent Assets 136.999

    TOTAL ASSETS 3.674.768

    LIABILITIESCurrent Liabilities:Accounts payable 15,090Payroll deductions payable 17,628

    TOTAL LIABILITIES 32,718

    NET ASSETSInvested in capital assets, net of related debt 136,999Unrestricted 3.505.051

    TOTAL NET ASSETS $3,642,050

    The accompanying notes are an integral part of this statement

  • 10

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Statement of ActivitiesFor the Year Ended December 31, 2006

    EXPENSESGovernmental Activities:Salaries and related expenses $2,030,198Operating services 173,369Education 6, 935Office materials and supplies 48,321Professional services 13,050Travel and other related expenditures 12,330Capital outlay 30,022Depreciation expense 57,590

    Total Expenses 2,371,815

    GENERAL REVENUESAd valorem taxes 2,518,468State revenue sharing 83,729Interest earnings 41,115Capital assets donated by

    St. Tammany Parish government 85,798Other 65.351

    Total General Revenues 2,794,461

    Change in Net Assets 422,646

    Net assets at beginning of year 3,219.404

    Net assets at end of year $3,642,050

    The accompanying notes are an integral part of this statement.

  • 11

    BASIC FINANCIAL STATEMENTS

    {FUND FINANCIAL STATEMENTS)

  • 12

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Balance SheetGeneral Fund - Governmental Fund

    December 31, 2006

    ASSETSCash and cash equivalents (Note C) $ 379,360Investments (Note D) 529,339Revenues receivable:Ad valorem taxes 2,509,879State revenue sharing 87,786Other 31.405

    TOTAL ASSETS $3.537,769

    LIABILITIES AND FUND BALANCELiabilities:Accounts payable $ 15,090Payroll deductions payable 17,628

    Total Liabilities 32,718

    Fund balance:Unreserved-undesignated 3,505.051

    TOTAL LIABILITIES & FUND BALANCE $3,537.769

    The accompanying notes are an integral part of this statement.

  • 13

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

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

    December 31, 2006

    Total Fund Balance - Governmental Fund $3,505,051

    Amounts reported for governmental activitiesin the Statement of Net Assets are differentbecause:

    Capital assets used in governmentalactivities are not current financialresources and, therefore, are notreported in the Governmental FundsBalance Sheet. This amount representscapital assets net of accumulateddepreciation. 136.999

    Total Net Assets of Governmental Activities $3,642,050

    The accompanying notes are an integral part of this statement.

  • 14

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Governmental Fund Type - General FundStatement of Revenues, Expenditures,

    and Changes in Fund BalanceFor the Year Ended December 31, 2006

    REVENUESAd valorem taxes $2,518,468State revenue sharing 83,729Interest earnings 41,115Other 65.621

    Total Revenues 2.708.933

    EXPENDITURESSalaries and related expenditures 2,030,468Operating services 173,369Education 6,935Office materials and supplies 48,321Professional services 13,050Travel and other related expenditures 12,330Capital outlay 30.022

    Total Expenditures 2.314,495

    Excess of Revenues over Expenditures 394,438

    Fund Balance at Beginning of Year 3.110.613

    Fund Balance at End of Year $3,505,051

    The accompanying notes are an integral part of this statement.

  • 15

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Reconciliation of the Statement of Revenues, Expendituresand Changes in Fund Balance of the Governmental Fund

    to the Statement of ActivitiesFor the Year Ended December 31, 2006

    Net Change in Fund Balance - Governmental Funds $394,438

    Amounts reported for governmental activitiesin the Statement of Activities are differentbecause:

    Capital assets donated to the assessor's officeby St. Tammany Parish municipal government 85,798

    Governmental funds report capital outlays asexpenditures. However, in the Statement ofActivities, the cost of those assets isallocated over their estimated useful livesas depreciation expense. This is the amountof depreciation that was charged in thecurrent year. (57.590)

    Change in Net Assets of Governmental Activities $422,646

    The accompanying notes are an integral part of this statement.

  • 16

    NOTES TO THE FINANCIAL STATEMENTS

  • 17

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Notes to the Financial StatementsDecember 31, 2006

    INTRODUCTION

    As provided by Article VII, Section 24 of the LouisianaConstitution of 1974, the assessor is elected by the voters of theparish and serves a four year term. The assessor assesses all realand movable property in the parish subject to ad valorem taxation.The assessor is authorized to appoint as many deputies as may benecessary for efficient operation of the office and provideassistance to the taxpayers of the parish. The deputies areauthorized to perform all functions of the office, but the assessoris officially and pecuniarily responsible for the actions of thedeputies.

    The assessor has one office located in Covington and one office inSlidell in St. Tammany Parish. In accordance with Louisiana law,the assessor bases real and movable property assessments onconditions existing on January 1 of the tax year. The assessorcompletes an assessment listing for the tax year and submits thelist to the parish governing authority and the Louisiana TaxCommission, as prescribed by law. Once the assessment listing isapproved, the assessor submits the assessment roll to the parishtax collector, who is responsible for collecting and distributingtaxes to the various taxing bodies located in the parish.

    NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    1. Basis of PresentationThe accompanying basic financial statements of theSt. Tammany Parish Assessor have been prepared inconformity with generally accepted accountingprinciples (GAAP) as applied to governmental units.The Governmental Accounting Standards Board (GASB) isthe accepted standard-setting body for establishinggovernmental accounting and financial reportingprinciples.

    The St. Tammany Parish Assessor has adopted theprovisions of Governmental Accounting Standards BoardStatement No. 34, Basic Financial Statements - andManagement's Discussion and Analysis - for State andLocal Governments. The assessor will be treated as agovernmental-type activity for financial reportingpurposes in this audit. The minimum requirements forthe St. Tammany Parish Assessor's office established by

  • 18

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Notes to the Financial StatementsDecember 31, 2006

    NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

    GASB Statement No. 34 are divided into the followingsections: (a) Management's Discussion and Analysis,(b) Basic Financial Statements, and (c) RequiredSupplementary Information (RSI) other than MD&A.

    The accompanying financial statements of the presentinformation only as to the transactions of the programsof the assessor as authorized by Louisiana statutes andadministrative regulations. Basis of accounting refersto when revenues and expenses are recognized andreported in the financial statements. Basis ofaccounting relates to the timing of the measurementsmade, regardless of the measurement focus applied.

    Revenue RecognitionRevenues are recognized using the full accrual basis ofaccounting. Therefore, ad valorem taxes, state revenuesharing and interest earnings are recognized in theaccounting period in which they are earned and becomemeasurable.

    Ad valorem taxes are assessed on a calendar year basis,become due on November 15 of each year, and becomedelinquent on December 31.

    Expense RecognitionExpenses are also recognized on the accrual basis;therefore, expenses, including salaries and relatedbenefits, general operating expenses, travel andautomotive, office supplies and expenditures, etc. arerecognized in the period incurred, if measurable.

    2. Reporting EntityFor financial reporting purposes, in conformance withGASB Codification Section 2100, the assessor is anindependently elected official who operates his officewithout oversight responsibility to the parishgoverning authority, the St. Tammany Parish Council.Louisiana revised statutes give each assessor controlover all of their operations. This includes the hiring

  • 19

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Notes to the Financial StatementsDecember 31, 2006

    NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

    and retention of employees, authority overbudgeting, responsibility for funding deficits andoperating deficiencies, and fiscal management forcontrolling the collection and disbursement of funds.

    Therefore, the assessor reports as an independentreporting entity and the financial statements includeonly the transactions of the St. Tammany ParishAssessor. Furthermore, the St. Tammany Parish Council,the parish's governing authority, does not include theassessor as a component unit in its comprehensiveannual financial report.

    3. Fund AccountingThe assessor uses a fund (General Fund) to report onits financial position and the results of itsoperations. Fund accounting is designed to demonstratelegal compliance and to aid financial management bysegregating transactions relating to certain governmentfunctions or activities. A fund is a separateaccounting entity with a self-balancing set ofaccounts.

    The assessor's General Fund is classified as agovernmental fund. Governmental funds account forgeneral activities, including the collection anddisbursement of specific or legally restricted moniesand the acquisition of capital assets.

    The General Fund, as provided by Louisiana RevisedStatute 47:1906, is the only fund of the assessor andaccounts for the operation of the assessor's office.Ad valorem tax revenue authorized by Act 292 of 1985 isaccounted for in this fund. General operatingexpenditures are paid from this fund.

    4. BudgetsThe original proposed budget for the year endedDecember 31, 2006, was made available for publicinspection at the assessor's office and advertisedon December 12, 2005. This budget was adopted onDecember 29, 2005, after a public hearing on thatday. The original budget was amended and made

  • 20

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Notes to the Financial StatementsDecember 31, 2006

    NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

    available for public inspection at the assessor'soffice and advertised on December 14, 2006. Theamended budget was adopted on December 29, 2006, aftera public hearing on that day.

    All budgets were prepared on the modified accrual basisof accounting. The assessor reserves all authority tomake changes to the budget. Formal budget integrationwithin the accounting records is employed as amanagement control device during the year. Budgetedamounts included in the accompanying financialstatements include the original adopted budget and allsubsequent amendments. All appropriations contained inthe budget lapse at year end.

    5. Cash, Cash Equivalents and InvestmentsCash includes amounts in interest bearing demanddeposits. Cash equivalents include amounts incertificates of deposit. Under state law, the assessormay deposit funds in demand deposits, money marketaccounts, or certificates of deposit with state banksorganized under Louisiana law and national banks havingtheir principal offices in Louisiana.

    Under state law, the district may invest in UnitedStates bonds, treasury notes or certificates, and otherinvestments backed by the full faith and credit of theUnited States.

    All investments are stated at cost.

    6. ReceivablesReceivables are made up of ad valorem taxes, staterevenue sharing and payments in lieu of taxes. Forcurrent year, ad valorem tax receivables were recordednet of an estimated 3% uncollectible amount.

  • 21

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Notes to the Financial StatementsDecember 31, 2006

    NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

    7. Capital AssetsCapital assets are recorded at either historical costor estimated historical cost and are depreciated overtheir estimated useful lives (excluding salvage value).Any donated capital assets are recorded at theirestimated fair value at the date of donation.Estimated useful life is management's estimate of howlong the asset is expected to meet service demands.Straight-line depreciation is used based on thefollowing estimated useful lives: autos, officefurniture and equipment = 5 years.

    8. Long-term ObligationsThere were no long-term obligations at December 31,2006.

    9. Compensated AbsencesEmployees of the assessor's office earn twelve toeighteen days of vacation leave per year and six toeighteen days of sick leave per year depending on thenumber of their years of service with the office. Oneday of vacation leave is earned for each month ofservice. One-half day of sick leave is earned for eachmonth of service. Vacation leave must be taken duringthe year earned, and cannot be accumulated. Upontermination, resignation or retirement employees arenot paid for any unused vacation or sick leave earned.At December 31r 2006, there were no accumulated orvested benefits related to vacation and sick leave thatrequire disclosure in accordance with GASBCodification C60.

    10. EncumbrancesEncumbrance accounting is not utilized due to thenature of operations and the ability of management tomonitor budgeted expenditures on a timely basis.

    11. Use of EstimatesThe preparation of financial statements in conformitywith generally accepted accounting principles requiresmanagement to make estimates and assumptions thataffect certain reported amounts and disclosures.Accordingly, actual results could differ from thoseestimates.

  • 22

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Notes to the Financial StatementsDecember 31, 2006

    NOTE B - LEVIED TAXES

    Ad valorem taxes of 2.66 mills were authorized and levied forthe operation of the assessor's office for the year.

    The following are the principal taxpayers for the parish:

    Taxpayer

    Central La. Elect. Co.BellSouth Inc.Hibernia National Bank

    Type ofBusiness

    UtilityTelephoneBank

    AssessedValuation

    $33,243,58020,458,31011.665.004

    $65,366.894

    Percentage ofTotal Assessed

    Valuation

    3.42%2.101.20

    6.72%

    The total assessed valuation for all taxpayers atDecember 31, 2006, was $972,743,530. This figure wasused in calculating the percentage of the "assessedvaluation of each of the ten largest taxpayers" listedabove to the "total assessed valuation for all taxpayers."

    NOTE C - CASH AND CASH EQUIVALENTS

    At December 31, 2006, the carrying amounts (book balances)of all cash and cash equivalents of the assessor were asfollows:

    Interest bearing checking accountand certificates of deposits

    Total

    $379,360

    $379,360

    These deposits are stated at cost, which approximatesmarket. Under state law, these deposits, or the resultingbank balances, must be secured by federal depositinsurance or the pledge of securities owned by the fiscalagent bank. The market value of the pledged securitiesplus the federal deposit insurance must at all times equalthe amount on deposit with the fiscal agent. These

  • 23

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Notes to the Financial StatementsDecember 31, 2006

    NOTE C - CASH AND CASH EQUIVALENTS (CONTINUED)

    securities are held in the name of the pledging fiscalagent bank in a holding or custodial bank that is mutuallyacceptable to both parties. At December 31, 2006, theassessor had $428,830 in deposits (collected bank balances).At December 31, 2006, these deposits were secured from riskby $314,052 of federal deposit insurance and $114,778 ofpledged securities held by the custodial bank in the name ofthe fiscal agent bank.

    Louisiana Revised Statute 39:1229 imposes a statutoryrequirement on the custodial bank to advertise and sellthe pledged securities within 10 days of being notifiedby the assessor that the fiscal agent has failed to paydeposited funds upon demand.

    NOTE D - INVESTMENTS

    At December 31, 2006, the assessor held the following typesof investments:

    Type of InvestmentLouisiana Asset ManagementPool (LAMP)

    Cost/CarryingAmount

    $529,339

    MarketValue

    $529,339

    Louisiana Asset Management Pool (LAMP):In accordance with GASB Codification section 150.126, thedistrict's investment in the LAMP account, a localgovernment investment pool, is not categorized in the threerisk categories provided by GASB Codification Section150.125 because the investment is in the pool of funds andtherefore not evidenced by securities that exist in physicalor book entry form.

    LAMP is administered by LAMP, Inc., a non-profit corporationorganized under the laws of the State of Louisiana. Onlylocal government entities having contracted to participatein LAMP have an investment interest in its pool of assets.

  • 24

    ST, TAMMANY PARISH ASSESSORCovington, Louisiana

    Notes to the Financial StatementsDecember 31, 2006

    NOTE D - INVESTMENTS (CONTINUED)

    The primary objective of LAMP is to provide a safeenvironment for the placement of public funds in short-term,high quality investments. The LAMP portfolio includes onlysecurities and other obligations in which local governmentsin Louisiana are authorized to invest in accordance withLSA-R.S. 33:2955. Accordingly, LAMP investments arerestricted to securities issued, guaranteed, or backed bythe U.S. Treasury, the U.S. Government, or one of itsagencies, enterprises, or instrumentalities, as well asrepurchase agreements collateralized by those securities.

    Effective August 1, 2001, LAMP'S investment guidelines wereamended to permit the investment in government-only moneymarket funds. In its 2001 Regular Session, the LouisianaLegislature (Senate Bill No. 512, Act 701) enacted LSA-R.S.33:2955(A)(1)(h) which allows all municipalities, parishes,school boards, and any other political subdivisions of theState to invest in "Investment grade (A-l/P-1) commercialpaper of domestic United States corporations." EffectiveOctober 1, 2001, LAMP'S Investment Guidelines were amendedto allow the limited investment in A-l or A-1+ commercialpaper.

    The dollar weighted average portfolio maturity of LAMPassets is restricted to not more than 90 days, and consistsof no securities with a maturity in excess of 397 days.LAMP is designed to be highly liquid to give itsparticipants immediate access to their account balances.The investments in LAMP are stated at fair value based onquoted market rates. The fair value is determined on aweekly basis by LAMP and the value of the position in theexternal investment pool is the same as the value of thepool shares.

    LAMP, Inc. is subject to the regulatory oversight of thestate treasurer and the board of directors. LAMP is notregistered with the Securities and Exchange Commission as aninvestment company.

  • 25

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Notes to the Financial StatementsDecember 31, 2006

    NOTE E - CAPITAL ASSETS

    The capital assets used in the governmental-type activitiesare included on the Statement of Net Assets of the assessorand are capitalized at historical cost. Depreciation of allexhaustible capital assets used by the assessor is chargedas an expense against operations. Accumulated depreciationis reported on the Statement of Net Assets. Depreciationexpense for financial reporting purposes is computed usingthe straight-line method over the useful lives of thecapital assets and is reported in the Statement ofActivities.

    A summary of changes in capital assets and accumulateddepreciation during the year is listed as follows:

    Capital AssetsOffice furnitureand equipment

    Autos

    Total

    Balance12/31/05

    $304,81644.787

    BalanceAdditions Deletions 12/31/06

    $60,27630,022

    $349,603 $90,298

    $365,09267.309

    $432,401

    Less Accumulated Depreciation for -Office furnitureand equipment $222,898 $51,586

    Autos 17.914 6,004

    Total $240,812 $57,590

    $274,48420.918

    $295,402

    NOTE F - PENSION PLAN

    Plan DescriptionSubstantially all employees of the St. Tammany ParishAssessor's office are members of the Louisiana Assessor'sRetirement System (System), a cost-sharing,multiple-employer defined benefit pension planadministered by a separate board of trustees.

  • 26

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Notes to the Financial StatementsDecember 31, 2006

    NOTE F - PENSION PLAN {CONTINUED}

    All full-time employees who are under the age of 60 at thetime of original employment and are not drawing retirementbenefits from any other public retirement system inLouisiana are required to participate in the System.Employees who retire at or after age 55 with at least 12years of credited service or at or after age 50 with atleast 30 years of credited service are entitled to aretirement benefit, payable monthly for life, equal to 3percent of their final-average salary for each year ofcredited service, not to exceed 100 percent of theirfinal-average salary. Final-average salary is theemployee's average salary over the 36 consecutive orjoined months that produce the highest average. Employeeswho terminate with at least 12 years of service and do notwithdraw their employee contributions may retire at or afterage 55 and receive the benefit accrued to their date oftermination. The System also provides death and disabilitybenefits. Benefits are established by state statute.

    The System issues an annual publicly available financialreport that includes financial statements and requiredsupplementary information for the System. That report maybe obtained by writing to the Louisiana Assessor'sRetirement System, Post Office Box 1786, Shreveport,Louisiana 71166-1786, or by calling (318)425-4446.

    Funding PolicyFor all of 2006, plan members (employees) were required bystate law to contribute 8.0 percent of their annual coveredsalary into the retirement system. For the period ofJanuary 1, 2006 to September 30, 2006, the assessor(employer) was required to contribute 14.0 percent of anemployee's annual covered payroll into the System. For theperiod October 1, 2005 to December 31, 2006, the employer'srate decreased to 13.5 percent. Contributions to the Systemalso include one-fourth of one percent (one percent forOrleans Parish) of the taxes shown to be collectible by thetax rolls of each parish, plus revenue sharing appropriatedby the legislature. The contribution requirements of planmembers and the assessor are established and may be amendedby state statute. As provided by Louisiana Revised Statute11:103, the employer contributions are determined byactuarial valuation and are subject to change each yearbased on the results of the valuation for the prior fiscal

  • 27

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Notes to the Financial StatementsDecember 31, 2006

    NOTE F - PENSION PLAN (CONTINUED)

    actuarial valuation and are subject to change each yearbased on the results of the valuation for the prior fiscalyear. The assessor's (employer) portion of contributions tothe System for the years ended December 31, 2006, 2005 and2004, were $174,411, $181,154, and $157,122 respectively,and these amounts equaled the required contributions forthose years.

    In addition, the assessor paid the employees' portion ofannual contributions to the System for the years endedDecember 31, 2006 and 2005 and the amounts were $100,608 and$100,822, respectively and these amounts equaled therequired contribution amounts for those years.

    NOTE G - POSTEMPLOYMENT HEALTH CARE AND LIFE INSURANCE BENEFITS

    The St. Tammany Parish Assessor provides certain continuinghealth care and life insurance benefits for retiredemployees. Substantially all of the assessor's employeesbecome eligible for these benefits if they reach normalretirement age while working for the assessor. Thesebenefits for retirees and similar benefits for activeemployees are provided through the Louisiana AssessorsInsurance Fund. Monthly premiums for all fulltime employeesare paid totally by the assessor. On the other hand, theassessor pays only for the retirees' premiums themselves andnot their spouses or dependents. The assessor recognizesthe cost of providing these benefits as an expenditure whenpaid during the year. For the year ended December 31, 2006,the total cost of benefits paid by the assessor for allactive employees and retirees was $352,530 and $30,148,respectively.

  • 28

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Notes to the Financial StatementsDecember 31, 2006

    NOTE H - LEASES

    Operating LeaseOperating leases are all leases that do not meet thecriteria of capital leases. The assessor's office was thelessor under two vehicle operating leases. All of therequired monthly lease payments for both leases were madeduring the year and they totaled $16,069.

    There were future lease commitments for only one of thevehicle leases listed above, which totaled $10,343

    There were no other operating or capital leases.

    NOTE I - EXPENDITURES OF THE ASSESSOR NOT INCLUDED IN THEFINANCIAL STATEMENTS

    Louisiana R.S. 33:4713 requires the parish council toprovide the assessor with all necessary office space,utilities, furniture equipment, supplies and maps. Duringthe year, the council provided office space, utilities andjanitorial services on a limited basis. The value of theseitems are not reflected in the accompanying financialstatements. Under this arrangement, the assessor has oneoffice located in Covington and one in Slidell in St.Tammany Parish.

    NOTE J - LITIGATION

    There was no pending or threatened litigation against theassessor's office at December 31, 2006, which would have amaterial adverse effect on the financial statements.

  • 29

    REQUIRED SUPPLEMENTARY INFORMATION (RSI)

  • 30

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Required Supplementary InformationGeneral Fund - Governmental Fund Type

    Statement of Revenues, Expenditures, and Changes inFund Balance - Budget (GAAP Basis) and Actual

    For the Year Ended December 31, 2006

    REVENUESAd valorem taxesState revenue sharingInterest earningsOther

    Total Revenues

    Budgeted AmountsOriginal

    $2,200,00095,00030,00030.000

    Final

    $2,300,00095,00035,00040.000

    2.355.OOP 2,470,OOP

    ActualAmounts

    $2,518,46883,72941,11565.621

    2.708.933

    Variancewith FinalBudgetPositive(Negative)

    $218,468(11,271)6, 11525,621

    238.933

    EXPENDITURESSalaries and relatedexpenditures

    Operating servicesEducationOffice materials andsuppliesProfessional servicesTravel and other relatedexpenditures

    Capital outlay

    Total Expenditures 2.295,OOP 2.469.OOP 2,314.495

    2,000,115,25,

    110,10,

    20,15,

    000OOPPOP

    000000

    OPP000

    2, 120,190,20,

    67,25,

    20,27,

    OOPOOPPPO

    000000

    OOPPPO

    2,030,173,

    6,

    48,13,

    12,30,

    468369935

    321P50

    330022

    89,16,13,

    18,11,

    7,(3,

    532631P65

    679950

    670022

    Excess (Deficiency) ofRevenues overExpenditures

    Fund Balance atBeginning of Year

    Fund Balance atEnd of Year

    60,000

    2.426,383

    1,OPO

    2,420,383

    394,438

    3.IIP.613

    154.5P5

    393,438

    690.230

    $2,486,383 $2,421,383 $3,5P5,051 $1,083.668

    The accompanying notes are an integral part of this statement.

  • 31

    SUPPLEMENTARY INFORMATION SCHEDULE

  • 32

    ST. TAMMANY PARISH ASSESSORCovington, Louisiana

    Supplementary Information ScheduleSummary Schedule of Prior Audit Findings and

    Corrective Action Plan for Current Year Audit FindingsFor the Year Ended December 31, 2006

    I have audited the accompanying basic financial statements ofthe St. Tammany Parish Assessor as of and for the year endedDecember 31, 2006, and have issued my report thereon datedJune 6, 2007. I conducted my audit in accordance with generallyaccepted auditing standards and the standards applicable tofinancial audits contained in Government Auditing Standards, issuedby the Comptroller General of the United States. My audit of thefinancial statements as of December 31, 2006, resulted in anunqualified opinion.

    Section 1 - Summary of Auditor's Report and Findings

    There were no material weaknesses in internal control and no otherreportable conditions which required disclosure in this auditreport.

    There were no instances of noncompliance that were required to bereported in this audit report.

    There were no other findings required to be reported, and nomanagement letter was issued for the current audit period.

    There were no prior-year audit findings.

    The St. Tammany Parish Assessor did not receive any federal fundsduring the twelve months ended December 31, 2006.

    Contact Person:Ms. Patricia S. CoreSt. Tammany Parish Assessor

    St. Tammany Parish Courthouse701 North Columbia StreetCovington, Louisiana 70433Phone #: 985-809-8180

  • 33

    OTHER REQUIRED REPORT

  • 34

    KEITH J. ROVIRACERTIFIED PUBLIC ACCOUNTANT

    3331METAIRIE ROADMETAIRIE, LA 70001-5297

    Fax (504)831-4042(504)831-4040 Email: RQVIRACPAfoiAQL.COM

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

    FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITH GOVERNMENT AUDITING STANDARDS

    Honorable Patricia Schwarz CoreSt. Tammany Parish AssessorCovington, Louisiana

    I have audited the financial statements of the St. Tammany ParishAssessor as of and for the year ended December 31, 2006, and haveissued my report thereon dated June 6, 2007. I conducted my auditin accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financialaudits contained in Government Auditing Standards, issued by theComptroller General of the United States.

    Internal Control Over Financial ReportingIn planning and performing my audit, I considered the St. TammanyParish Assessor's internal control over financial reporting as abasis for designing my auditing procedures for the purpose ofexpressing my opinion on the financial statements, but not for thepurpose of expressing an opinion on the effectiveness of theSt. Tammany Parish Assessor's internal control over financialreporting. Accordingly, I do not express an opinion on theeffectiveness of the St. Tammany Parish Assessor's internal controlover financial reporting.

    A control deficiency exists when the design or operation of acontrol does not allow management or employees, in the normalcourse of performing their assigned functions, to prevent or detectmisstatements on a timely basis. A significant deficiency is a

  • 35

    control deficiency, or combination of control deficiencies, thatadversely affects the assessor's ability to initiate, authorize,record, process, or report financial data reliably in accordancewith general accepted accounting principles such that there is morethan a remote likelihood that a misstatement of the assessor'sfinancial statements that is more than inconsequential will not beprevented or detected by the assessor's internal control.

    A material weakness is a significant deficiency, or combination ofsignificant deficiencies that results in more than a remotelikelihood that a material misstatement of the financial statementswill not be prevented or detected by the assessor's internalcontrol.

    My consideration of internal control over financial reporting wasfor the limited purpose described in the first paragraph of thissection and would not necessarily identify all deficiencies in theinternal control that might be significant deficiencies or materialweaknesses. I did not identify any deficiencies in internalcontrol over financial reporting that I consider to be materialweaknesses, as defined above.

    Compliance and Other MattersAs a part of obtaining reasonable assurance about whether theSt. Tammany Parish Assessor's financial statements are free ofmaterial misstatement, I performed tests of its compliance withcertain provisions of laws, regulations and contracts,noncompliance with which could have a direct and material effect onthe determination of the financial statement amounts. However,providing an opinion on compliance with those provisions was not anobjective of my audit, and accordingly, I do not express such anopinion. The results of my tests disclosed no instances ofnoncompliance or other matters that are required to be reportedunder Government Auditing Standards.

    This report is intended solely for the information and use ofmanagement, and the State of Louisiana Legislative Auditor, andshould not be used for any other purpose. This restriction is notintended to limit the distribution of this report which, uponacceptance by the State of Louisiana Legislative Auditor, is amatter of public record.

    Keith J. RoviraCertified Public Accountant

    June 6, 2007