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DISTRICT ATTORNEY OF THE THIRTY-FIRSTJUDICIAL DISTRICT

Jennings, Louisiana

Basic Financial StatementsAs of and for the Year Ended December 31, 2006

(Issued June 18,2007, except for Note 12,as to which the date is January 11, 2008)

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

DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTJennings, Louisiana

Basic Financial StatementsAs of and for the Year Ended December 31, 2006

With Supplemental Information Schedules

TABLE OF CONTENTS

Statement Schedule Page

Independent Auditor's Report - - 1-2

Basic Financial Statements: 3Government-wide Financial Statements (GWFS):

Statement of Net Assets A - 4Statement of Activities B - 5

Fund Financial Statements (FFS): 6Governmental Funds:

Balance Sheet C - 7Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Assets D - 8Statement of Revenues, Expenditures, and Changes in Fund Balances E - 9Reconciliation of the Statement of Revenues, Expenditures, and Changes

in Fund Balance of Governmental Funds to the Statement of Activities F - 10Fiduciary Funds:

Statement of Fiduciary Net Assets G - 11Notes to the Basic Financial Statements - - 12-29

Required Supplemental Information 30Budgetary Comparison Schedule- General Fund and Budgeted Major Funds:

General Fund - 1 31Title IV-D Fund - 2 32Drug Forfeiture Fund - 3 33

Notes to Budgetary Comparison Schedules - - 34

Supplemental Information 35Nonmajor Special Revenue Funds:

Combining Balance Sheet - 4 36Combining Statement of Revenues, Expenditures and Changes in Fund Balance - 5 37

Agency Funds:Combining Balance Sheet - 6 38Schedule of Changes in Deposits Due Others - 7 39

Other Reports: 40Independent Auditor's Report on Internal Control Over Financial Reportingand on Compliance and Other Matters Based on an Audit of FinancialStatements Performed In Accordance with Governmental AuditingStandards - _ 41.42

Schedule of Findings and Responses - - 43-46

Management's Status o f Prior Year Audit Findings - . 47

Management's Corrective Actions Plan for Current Year Audit Findings - - 48-50

Mike B. Gillespie, CPA(A Professional Accounting Corporation)

414 E. Nezpique StreetPO Box 1347

Jennings, LA 70546

INDEPENDENT AUDITOR'S REPORT

Honorable Michael C. CassidyDistrict AttorneyThirty-First Judicial DistrictJennings, Louisiana

I was engaged to audit the accompanying financial statements of the governmental activities, each major fund,and the aggregate remaining fund information of the District Attorney of the Thirty-First Judicial District(District Attorney), a component unit of the Jefferson Davis Parish Police Jury, as for the year ended December31, 2006, which collectively comprise the District Attorney's basic financial statements as listed in the table ofcontents. These financial statements are the responsibility of the District Attorney's management. Myresponsibility is to express an opinion on these financial statements based on my audit.

Documentation to support many credit card expenditures were not available for my audit. Therefore, I was notable to satisfy myself with respect to $12,311 of expenditures contained in the accompanying financialstatements, either due to lack of supporting invoices and/or adequately documented business purposes. Inaddition, as disclosed in note 12, subsequent to original report date, June 18, 2007, the Louisiana LegislativeAuditor's Office began a financial examination of the District Attorney's office.

Because of the significance of the matters discussed in the preceding paragraph, the scope of my work was notsufficient to enable me to express, and I do not express, an opinion on the financial statements referred to in thefirst paragraph.

In accordance with Government Auditing Standards, I have also issued my report dated June 18, 2007, and dualdated January 11, 2008 with respect to Finding Item 2006-3, on my consideration of District Attorney's internalcontrol over financial reporting and on my tests of its compliance with certain provisions of laws, regulations,contracts and grants. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and results of that testing, and not to provide an opinion on the internalcontrol over financial reporting or on compliance. That report is an integral part of an audit performed inaccordance with Government Auditing Standards and should be considered in assessing the results of my audit.

The District Attorney has not presented a management's discussion and analysis that accounting principlesgenerally accepted in the United States of America has determined is necessary to supplement, although notrequired to be part of, the basic financial statements. The budgetary comparison information on pages 30 to 33,is not a required part of the basic financial statements but is supplementary information required by accounting

principles generally accepted in the United States of America. I have applied certain limited procedures, whichconsisted principally of inquires of management regarding the methods of measurement and presentation of thesupplementary information. However, I did not audit the information and express no opinion on it.

I was engaged to audit the financial statements that collectively comprise the District Attorney's basic financialstatements. The supplemental information section which includes the combining and individual fund financialstatements and other supplemental information are presented for purposes of additional analysis and are notrequired part of the basic financial statements. As discussed in the third paragraph above, the scope of my workwas not sufficient to enable me to express opinions on the financial position of the governmental activities andthe changes in financial position. Similarly, I am unable to express and do not express an opinion on theaccompanying the combining and individual fund financial statements, and other supplemental information.

, tfftte&foie,Jennings, LouisianaJune 18, 2007, except for Note 12,as to which the date is January 11, 2008

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDEFINANCIAL STATEMENTS (GWFS)

DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTStatement of Net AssetsDecember 31, 2006 Statement A

ASSETSCash $ 488,667Investments 598,770Receivables 76,005Capital assets:

Exhaustible capital assets, net of depreciation 94,997

TOTAL ASSETS 1,258,439

LIABILITIESAccounts payable 14,196Payroll deductions, withholdings, and

accrued salaries payable 24,810Due to other governments 19,343

TOTAL LIABILITIES 58,349

NET ASSETSInvested in capital assets, net of related debt 94,997Unrestricted 1,105,091

TOTAL NET ASSETS $ 1,200,088

The accompanying notes are an integral part of this statement.4

DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTStatement of ActivitiesFor the Year Ended December 31, 2006 Statement B

EXPENDITURES/ EXPENSESJudiciary:

Salaries and related benefits $ 924,706Advertising, dues and subscriptions 33,586Communications 35,275Repairs and maintenance 9,728Professional services 36,135Insurance 7,972Office supplies 57,540Operating supplies 12,095Travel and professional development 82,172Intergovenmental expenditure:

Distribution to other agencies 22,309Distribution to other governments - LACE 221,545

Depreciation expense 31,731Other 61,047

Total Program Expenditures/ Expenses 1,535,841

PROGRAM REVENUESCommission on fines and forfeitures 1,111,225Charges for services 15,647Operating grants and contributions 942.786

Total Program Revenues 2,069,658

Net Program Expenses 533,817

GENERAL REVENUESInterest earned 36,291Miscellaneous 159

Total General Revenues 36,450~

CHANGE IN NET ASSETS 570,267

NET ASSETS- BEGINNING OF YEAR 629,821

NET ASSETS- END OF YEAR $ 1,200,088


BASIC FINANCIAL STATEMENTS

FUND FINANCIAL STATEMENTS (FFS)

DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTBalance SheetDecember 31, 2006 Statement C

ASSETSCashInvestmentsReceivablesInterfund receivables

Total Assets

LIABILITIES AND FUND BALANCESAccounts payablePayroll deductions, withholdings, and

accrued salaries payableDue to other governmentsDeferred revenueInterfund payables

Total Liabilities

FUND BALANCESUnreserved - undesignated

Total Fund Balances

TOTAL LIABILITIES ANDFUND BALANCES

General Fund

84,895 $239,42457,84112,500

394,660 $

9,955 $

23,71319,343

31310,707

64,031

Title IV-D

26,012 g

14,583

40,595 3

147 3

1,099

169

1,415

Drug Forfeiture

S 370,362 $329,772

3,581707

> 704,422 $

> 1,015 $

1,86413,500

16,379

Other Funds

7,398 329,574

11,000

47,972 g

3,079 g

-

3,079

TotalGovernmental

Funds

J 488,667598,77076,00524,207

> 1,187,649

; 14,196

24,81219,3432,346

24,207

84,904

330,629

330,629

394,660 $

39,180

39,180

40,595 $

688,043

688,043

704,422 $

44,893

44,893

47.972 $

1,102,745

1,102,745

1,187,649


DISTRICT ATTORNEY OF THE THIRTY-FIRST DISTRICTReconciliation of the Governmental FundsBalance Sheet to the Statement of Net AssetsDecember 31, 2006 Statement D

Total Ending Fund Balances -Governmental Funds (Statement C) $ 1,102,745

Amounts reported for governmental activities in the statement of net assetsare different because:

Capital assets used in governmental activities are not financial resourcesand therefore are not reported as assets in governmental funds.

Costs of capital assets $ 382,666Accumulated depreciation (287,669) 94,997

Liability for earned but deferred revenue:Deferred interest revenue 2,346

Net Assets (Statement A) $ 1,200,088

The accompanying notes are an integral part of this statement.

DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTGOVERNMENTAL FUNDSStatement of Revenues, Expenditures, and Changes in Fund BalancesFor the Year Ended December 31, 2006 Statement E

REVENUESCommissions on fines and forfeitures 3Intergovernmental revenues:

FederalStateParish

Charges for servicesInterest earningsOther revenues

Total Revenues

EXPENDITURESCurrent:

General government - JudicialSalaries and related benefitsAdvertising, dues and subscriptionsCommunicationsRepairs and maintenanaceProfessional servicesInsuranceOffice suppliesOperating suppliesTravel and professional developmentOther expendituresIntergovernmental expenditures:Distributions to other governments-LACEDistributions to other agencies

Capital outlayTotal expenditures

EXCESS (Deficiency) OF REVENUES OVEREXPENDITURES

OTHER FINANCING SOURCES (USES):Operating transfers inOperating transfers out

Total Other Financing Sources (uses)

NET CHANGES IN FUND BALANCES

FUND BALANCES BEGINNING OF YEAR

FUND BALANCES END OF YEAR 5

GeneralFund

363,253 $

246,165613,394

16,681159

1,239,652

838,16911,08933,3859,064

58

51,07010,96242,35016,778

221,5457,8407,789

1,250,099

(10,447)

Title IV-D

54,93028,297

257

83,484

83,817

1,890

85,707

(2,223)

-

-

(10,447)

341,076

330,629 $

(2,223)

41,403

39,180

DrugForfeiture

711,970

_---

15,601-

727,571

2,72020,966.-

11,992-

3,389674

10,03844,193

_

14,46917,078

125,519

602,052

Other Funds

$ 36,002 3

_--

15,6471,406

-53,055

1,531-664

24,0857,9723,081

45929,784

76

.-

3,54371,195

(18,140)

TotalGovernmental

Funds

; 1,111,225

54,930274,462613,394

15,64733,945

1592,103,762

924,70633,58635,2759,728

36,1357,972

57,54012,09582,17261,047

221,54522,30928,410

1,532,520

571,242

-

_

602,052

85,991

688,043

(18,140)

63,033

$ 44,893 S

571,242

531,503

i 1,102,745


DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTReconciliation of the Statement of Revenues, Expenditures, andChanges in Fund Balance of Governmental Funds to the Statement of ActivitiesFor the Year Ended December 31, 2006 Statement F

Total Net Change in Fund Balance - Governmental Funds (Statement E) $ 571,242

Amounts reported for governmental activities in the statement of activities aredifferent because:

Capital outlays are reported in governmental funds as expenditures. However, inthe statement of activities, the cost of those assets is allocated over their estimateduseful lives as depreciation expense. This is the amount by which depreciationexpense exceeds capital outlays in the period:

Depreciation expense $ (31,731)Capital outlays 28.410 (3,321)

The net effect of various transactions involving capital assets (ie., sales, trade-ins,and contributions) is to decrease net assets

Revenues earned during the period but not yet available:Accrued interest receivable 2,346

Change In Net Assets of Governmental Activities (Statement B) $ 570,267


DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTFIDUCIARY FUNDSStatement of Fiduciary Net AssetsDecember 31, 2006 Statement G

Total AgencyFunds

ASSETSCash $ 95,820Receivables:

Other 120

TOTAL ASSETS $ 95,940

LIABILITIESDue to others $ 95,940

TOTAL LIABILITIES $ 95,940


NOTES TO THE BASIC FINANCIAL STATEMENTS

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Jennings, Louisiana

Notes to the Financial StatementsAs of and for the Year Ended December 31, 2006

INTRODUCTION

Under constitutional provisions and LSA-RS 15.571, the office of the District Attorney is establishedwithin each judicial district. The District Attorney serves a term of six years and takes office on the firstday of January following the election.

As provided by LSA-RS 16:1, the District Attorney represents the state in all civil actions, is in chargeof every criminal prosecution by the state in his district, is the representative of the state before thegrand juries in his district, and is the legal advisor to the grand juries. In addition, the District Attorneycan ex officio be the regular attorney and counsel for the police jury, the parish school board within thedistrict, and all state boards or commissions domiciled therein the members of which, in whole or inpart, are elected by the people or appointed by the governor or other prescribed authority.

The jurisdiction of the District Attorney of the Thirty-First Judicial District is comprised of JeffersonDavis Parish and the office is located in the parish courthouse in the city of Jennings. The staff of theDistrict Attorney is made up of fifteen employees including the District Attorney, four assistant DistrictAttorneys, two investigators, an investigative assistant, a victim's coordinator and six clerical personnel.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. REPORTING ENTITY

The District Attorney is an independent elected official; however, the District Attorney is fiscallydependent on the Jefferson Davis Parish Police Jury. The police jury maintains and operates theparish courthouse in which the District Attorney's office is located and provides funds forequipment and furniture of the District Attorney's office. In addition, the police jury's generalpurpose financial statements would be incomplete or misleading without inclusion of the DistrictAttorney. For these reasons, the District Attorney was determined to be a component unit of theJefferson Davis Parish Police Jury, the financial reporting entity.

The accompanying financial statements present information only on the funds maintained by theDistrict Attorney and do not present information on the police jury, the general governmentservices provided by that governmental unit, or the other governmental units that compromisethe financial reporting entity.

B. BASIS OF PRESENTATION

The accompanying financial statements of the Thirty-First Judicial District have been prepared inconformity with governmental accounting principles generally accepted in the United States ofAmerica. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Theaccompanying basic financial statements have been prepared in conformity with GASBStatement 34, Basic Financial Statements - and Management's Discussion and Analysis -forState and Local Governments, issued in June 1999.

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Jennings, Louisiana


Government-Wide Financial Statements (GWFS)

The government-wide financial statements (GWFS) report information on all of the nonfiduciaryactivities of the District Attorney. For the most part, the effect of the interfund activity has beenremoved from these statements.

The statement of net assets presents information on all of the District Attorney's assets andliabilities, with the difference between the two reported as net assets. Over time, increases anddecreases in net assets may serve as a useful indicator of whether the financial position of theDistrict Attorney is improving or deteriorating.

The statement of activities demonstrates the degree to which the direct expenses of a givenfunction or segment are offset by program revenues. Direct expenses are those that are clearlyidentifiable with a specific function or segment. Indirect expenses of other functions are notallocated to those functions but are reported separately in the statement of activities.

Fund Financial Statements (FFS)

Separate fund financial statements (FFS) are provided for governmental funds and fiduciaryfunds, even though the latter are excluded from the GWFS. Major individual governmental fundsare reported as separate columns in the fund financial statements.

The District Attorney uses funds to maintain its financial records during the year. Fundaccounting is designed to demonstrate legal compliance and to aid management by segregatingtransactions related to certain District Attorney functions and activities. A fund is defined as aseparate fiscal and accounting entity with a self-balancing set of accounts. The following fundtype are used by the District Attorney:

Governmental Funds. Governmental funds account for all or most of the District Attorney'sgeneral activities. These funds focus on the sources, uses, and balances of current financialresources. Expendable assets are assigned to the various governmental funds according to thepurposes for which they may be used. Current liabilities are assigned to the fund from whichthey will be paid. The difference between a governmental fund's assets and liabilities is reportedas fund balance. In general, fund balance represents the accumulated expendable resources whichmay be used to finance future period programs or operations of the District Attorney. Thefollowing are the District Attorney's major governmental funds.

General Fund - The primary operating fund of the District Attorney and it accounts forall financial resources, except those required to be accounted for in other funds. TheGeneral Fund is available for any purpose provided it is expended or transferred inaccordance with state and federal laws and according to District Attorney policy. TheGeneral Fund was established in compliance with Louisiana Revised Statue 15:571.11,

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Jennings, Louisiana


which provides that 12 percent of the fines collected and bonds forfeited be transmitted tothe District Attorney to defray the necessary expenditures of his office.

Title IV-D Special Revenue Fund - The Title IV-D Special Revenue Fund consists ofincentive payments and reimbursement grants from the Louisiana Department of SocialServices, authorized by Act 117 of 1975, to establish family and child support programscompatible with Title IV-D of the social security act. The purpose of the fund is toenforce the support obligation owed by absent parents to their families and children, tolocate absent parents, to establish paternity, and to obtain family and child support.

Drug Forfeiture Special Revenue Fund - The Drug Forfeiture Special Revenue Fundconsists of 20% of the fines collected and bonds forfeited under the Seizure andControlled Dangerous Substances Property Forfeiture Act of 1989 as prescribed underLRS 40:2616. At the discretion of the District Attorney these funds are put in this specialrevenue fund instead of the general fund as allowed by law. As provided by LRS40:2616, these funds can be used for public purposes including, but not limited to use forprosecution, rewards, support and continuing legal education in furtherance of Chapter 26Title 40.

Additionally the following are the District Attorney's nonmajor governmental funds:

Worthless Check Collection Fee Special Revenue Fund - The Worthless CheckCollection Fee Special Revenue Fund consists of fees collected in accordance withLouisiana Revised Statute 16:15, which provides for a specific fee whenever the DistrictAttorney's office collects and processes a worthless check. Expenditures from this fundare at the sole discretion of the District Attorney and may be used to defray the salariesand the expenses of the office of the District Attorney, but may not be used to supplementthe salary of the District Attorney.

Pre-Trial Intervention Special Revenue Fund - The Pre-Trial Intervention SpecialRevenue Fund was established by the District Attorney to isolate the program revenuesand expenditures. The program is a diversion program which is offered to selected non-violent offenders as an alternative to prosecution. Participants receive coordinatedassistance in job placement, educational and vocational referrals, personal and groupcounseling, and referrals to other community agencies appropriate to their needs. Therevenues for this fund are derived from charges for services to participants and operatingtransfers from other funds of the District Attorney.

Fiduciary Funds. Fiduciary funds account for assets held on behalf of outside parties,including other governments, or on behalf of other funds within the District Attorney. TheDistrict Attorney's fiduciary funds include:

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Jennings, Louisiana


Escrow Agency Fund - The Escrow Agency Fund was created to account for collectionsby the District Attorney's office which are to be distributed to other agencies and victimsof crimes. This fund is custodial in nature (assets equal liabilities) and does not involvethe measurement of results of operations.

Drug Asset Seizure Agency Fund - The Drug Asset Seizure Agency Fund wasestablished in compliance with Louisiana Revised Statute 40:2616, which provides thatthe proceeds of any sale and any monies forfeited or obtained by judgment or settlementunder the Seizure and Controlled Dangerous Substances Property Forfeiture Act of 1989shall be deposited into a special trust fund until the court determines equitabledistribution of these funds. This agency fund is custodial in nature (assets equalliabilities) and does not involve the measurement of results of operations. The lawprovides that the District Attorney shall administer expenditures from this fund in thefollowing priority:

• For satisfaction of any bona fide security interest or lien.• Thereafter, for payment of all proper expenses of the proceedings for forfeiture and

sale, including expenses of seizure, maintenance of custody, advertising, and courtcosts.

• The remaining funds are to be allocated 60% to the law enforcement agency oragencies making the seizure, 20% to the criminal court fund, and 20% to any DistrictAttorney's office that handles the forfeiture action for the state.

Worthless Check Escrow Agency Fund - This fund was established to account forcollections of worthless check restitution and fees to be distributed to victims and othergovernment agencies. This fund is custodial in nature (assets equal liabilities) and doesnot involve the measurement of results of operations.

C. MEASUREMENT FOCUS / BASIS OF ACCOUNTING


The amounts reflected in the General Fund, Major Funds, and Other Funds, of Statement C andE, are accounted for using a current financial resources measurement focus. With thismeasurement focus, only current assets and current liabilities are generally included on thebalance sheet. The statement of revenues, expenditures, and changes in fund balances reports onthe sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and otherfinancing uses) of current financial resources. This approach is then reconciled, throughadjustment, to a government-wide view of District Attorney operations.

The amounts reflected in the General Fund, Major Funds, and Other Funds, of Statement C andE, 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

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and available). Measurable means the amount of the transaction can be determined and availablemeans collectible within the current period or soon enough thereafter to pay liabilities of thecurrent period. The District Attorney considers all revenues available if they are collected within60 days after the fiscal year end. Expenditures are recorded when the related fund liability isincurred, except for interest and principal payments on general long-term debt which isrecognized when due, and certain compensated absences and claims and judgments which arerecognized when the obligations were expected to be liquidated with expendable availablefinancial resources. The governmental funds use the following practices in recording revenuesand expenditures:

RevenuesIntergovernmental revenues and fees, charges for services, and commissions on fines andforfeitures are recorded when the District Attorney is entitled to the funds or earlier if susceptibleto accrual criteria are met. Investment earnings are recorded as earned since they are measurableand available. Substantially all other revenues are recorded when received.

ExpendituresExpenditures are generally recognized under the modified accrual basis of accounting when therelated fund liability is incurred.

Other Financing Sources (Uses)Transfers between funds that are not expected to be repaid are accounted for as other financingsources and uses in the accounting period in which the transfers occur. Proceeds from the sale offixed assets and insurance proceeds received on damaged fixed assets are also accounted for asother financing sources and are recognized when received.


The Statement of Net Assets (Statement A) and the Statement of Activities (Statement B) displayinformation about the District Attorney as a whole. These statements include all the financialactivities of the District Attorney. Information contained in these columns reflects the economicresources measurement focus and the accrual basis of accounting. Revenues, expenses, gains,losses, assets and liabilities resulting from exchange or exchange-like transactions are recognizedwhen the exchange occurs (regardless of when cash is received or disbursed). Revenues,expenses, gains, losses, assets and liabilities resulting from nonexchange transactions arerecognized in accordance with the requirements of GASB Statement No. 33, Accounting andFinancial Reporting for Nonexchange Transactions.

Program Revenues - Program revenues included in the Statement of Activities (Statement B)are derived directly from District Attorney's users as a fee for services; program revenues reducethe cost of the function to be financed from the District Attorney's general revenues.

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Jennings, Louisiana


D. DEPOSITS AND INVESTMENTS

Deposits and investments include amounts in demand deposits, interest-bearing demand deposits,and money market accounts. Under state law, the District Attorney may deposit funds in demanddeposits, interest-bearing deposits, money market accounts, or time deposits with state banksorganized under Louisiana Law or any other state of the United States, or under the laws of theUnited States.

Investments are limited by Louisiana Revised Statute (R.S.) 33:2955 since the District Attorneydoes not have a formal investment policy. Funds which are available for investment and aboveimmediate cash requirements can be invested in statutorily sanctioned investments includingdirect U.S. Treasury obligations, bonds, debentures, notes issued by or guaranteed by federalagencies, or certificates, or time certificates of deposit in any bank domiciled or having a branchoffice in Louisiana or any other federally insured investment. Statutorily sanctioned investmentsalso include funds invested with external local government investment pools such as LouisianaAssets Management Pool.

When investments are present in the financial statements they are reflected at fair value exceptfor the following which are permitted per GASB Statement 31, Accounting and FinancialReporting for Certain Investments and for External Investment Pools:

Investments in nonparticipating interest-earning contracts, such as nonnegotiablecertificates of deposit with redemption terms that do not consider market rates, are reportedusing a cost-based measure. Interest-earning investment contracts include time depositswith financial institutions (such certificates of deposit), repurchase agreements, andguaranteed investment contracts.

Money-market investments and participating interest-earning investment contracts thathave a remaining maturity at time of purchase of one year or less are reported at amortizedcost. Money market investments are short-term, highly liquid debt instruments that includeU.S, Treasury obligations.

E. SHORT-TERM INTERFUND RECEIVABLES / PAYABLES

During the course of operations, numerous transactions occur between individual funds forgoods provided or services rendered. These receivables/ payables are classified as interfundreceivable/payables on the FFS balance sheet. Short-term interfund loans are also classified asinterfund receivables/ payables.

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Jennings, Louisiana


F. CAPITAL ASSETS


In the fund financial statements, fixed assets used in governmental fund operations are accountedfor as capital outlay expenditures of the governmental fund upon acquisition.


In the government-wide financial statements, fixed assets are accounted for as capital assets.Capital assets are capitalized at historical cost or estimated historical cost if historical cost is notavailable. Donated assets are recorded as capital assets at their estimated fair market value at thedate of donation. The District Attorney maintains a threshold level of $300 or more forcapitalizing capital assets. Additions, improvement and other capital outlays that significantlyextend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenanceare expensed as incurred.

Depreciation of all exhaustible capital assets is recorded as an expense in the Statement ofActivities, with accumulated depreciation reflected in the Statement of Net Assets. Depreciationis provided over the assets' estimated useful lives using the straight-line method of depreciation.The estimated useful life by type of assets is as follows:

Vehicles 5 yearsImprovements 5-20 yearsFurniture and equipment 5-10 yearsOther 5-20 years

G. COMPENSATED ABSENCES

The District Attorney has the following policy relating to vacation and sick leave:

Vacations

Clerical personnel are granted ten working days per year for the first through the fifth year ofservice, fifteen working days per year for the sixth through the twelfth year; and twenty workingdays per year for service beyond twelve years. Primarily all of the clerical personnel's salariesare paid by the police jury's criminal court fund. This part of the vacation liability applies to thepolice jury and not the District Attorney's office. However, vacation time must be taken beforethe end of the year or it is forfeited. The District Attorney does not allow vacation time toaccumulate or vest beyond year end.

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Jennings, Louisiana


All District Attorneys and the administrative and investigative assistants are authorized tenworking days per year for the first year of service, then fifteen working days per year for thesecond through tenth year of service; and twenty-five days per year after ten years of service.

Vacation time must be used before the end of the year or it is forfeited. The District Attorneydoes not allow vacation time to accumulate or vest beyond year end.

Sick Leave

Each employee shall accrue sick leave at the rate of one day per month, the first five years, andthen one and a half days per month for all years thereafter. Accumulated sick leave cannotexceed 180 days. Employees cannot be paid for accrued sick leave when they resign, retire or areterminated.

The cost of current leave privileges, computed in accordance with GASB Codification SectionC60, is recognized as current year expenditure in the governmental funds when the leave isactually taken. As of December 31, 2006, the District Attorney did not have a liability foraccrued vacation leave since this benefit does not vest past year end. Therefore the financialstatements do not contain a liability for unpaid vacation pay. The District Attorney does notaccrue a liability for nonvesting accumulating rights to receive sick pay benefits as allowed byGASBC60.611.

H. FUND EQUITY


Governmental fund equity is classified as fund balance. Fund balance is further classified asreserved and unreserved, with unreserved displayed as either designated or undesignated. In thefund financial statements, governmental funds report reservations of fund balance for amountsthat are not available for appropriations or are legally restricted by outside parties for use for aspecific purpose. Any designations of fund balance represent tentative management plans thatare subject to change.


Equity is classified as net assets and displayed in three components:

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

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Jennings, Louisiana


Restricted net assets - Consists of net assets with constraints placed on the use either by externalgroups such as creditors, grantors, contributors, or laws or regulations of other governments; orlaw through constitutional provisions or enabling legislation.

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

When both restricted and unrestricted resources are available for use, it is the District Attorney'spolicy to use restricted resources first, then unrestricted resources as they are needed.

I. INTERFUND TRANSACTIONS

Transactions that constitute reimbursements to a fund for expenditures initially made from it thatare properly applicable to another fund are recorded as expenditures in the reimbursing fund andas reductions of expenditures in the fund that is reimbursed. Nonrecurring or non-routinepermanent transfers of equity are reported as residual equity transfers. All other interfundtransactions are reported as operating transfers.

J. ESTIMATES

The preparation of financial statements in conformity with accounting principles generallyaccepted in the United States of America require management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure of contingentassets 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 thoseestimates.

K. ELIMINATIONS AND RECLASSIFICATIONS

In the process of aggregating data for the statement of net assets and the statement of activities,some amounts reported as interfund activity and balances in the fund financial statements wereeliminated or reclassified. Interfund receivables and payables were eliminated to minimize the"grossing up" effect on assets and liabilities within the governmental activities.

21


Jennings, Louisiana


2. DEPOSITS AND INVESTMENTS

DepositsBank Reported

Deposit Type Balances Amount

Cash -demand deposits $ 178,590 $ 131,777Cash-nonnegotiable certificates of deposit $ 452,710 $ 452,710

Totals $ 631,300 $ 584,487

Under state law, these deposits (or the resulting bank balances) must be secured by federal depositinsurance or the pledge of securities owned by the fiscal agent bank. The market value of the pledgedsecurities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscalagent. These securities are held in the name of the pledging fiscal agent bank in a holding or custodialbank.

Custodial credit risk is the risk that in the event of a bank failure, the District Attorney's deposits maynot be returned to it. The District Attorney's deposit policy for custodial credit risk requires that alluninsured deposits must be secured with acceptable collateral as defined in LRS 38:1221 valued atmarket. As of December 31, 2006, the District Attorney had deposits (collected bank balances) totaling$631,300. Of these bank deposit balances, none were exposed to custodial credit risk.

Even though pledged securities are considered subject to custodial credit risk under the provisions ofGASB Statement 40, Deposits and Investment Risk Disclosures, R.S. 39:1229 imposes a statutoryrequirement on the custodial bank to advertise and sell the pledged securities within 10 days of beingnotified by the District Attorney that the fiscal agent has failed to pay deposited funds upon demand.

InvestmentsInvestmentMaturities(in Years)

Investment Type Fair Value Less Than1 Year

Louisiana Asset Management Pool (LAMP) $ 368,998 $ 368,998U.S. Treasury Bills 229,520 228,817Govt. Money Market Account 955 955

Totals $ 599,473 $ 598,770

Credit risk is defined as the risk that an issuer or other counterparty to an investment will not fulfill itsobligations. The District Attorney does not have a written investment policy, but does adhere to State

22


Jennings, Louisiana


laws regarding allowable investments. LAMP has a Standard & Poor's Rating of AAAm. Rating forinvestments in U.S. Treasury Bills and Government money market account were not available.

For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, theDistrict Attorney will not be able to recover the value of its investments or collateral securities that arein the possession of an outside party. Investments in external investment pools are not exposed tocustodial credit risk because of their natural diversification and the diversification required by theSecurities and Exchange Commission. Investments in U.S. Treasury Bills and Government MoneyMarket accounts do not require collateralization since they are statutorily permissible securities or thefunctional equivalent to a direct investment in statutorily permissible securities. Statutorily permissibleinvestments are guaranteed or backed by the U.S. Treasury, the U.S. Government or one of its agencies,enterprises or instrumentalities, and therefore are not considered to be exposed to custodial credit risk.

LAMP, a local government investment pool, is administered by LAMP, Inc., a non-profit corporationorganized under the laws of the State of Louisiana, which was formed by an initiative of the StateTreasurer in 1993. While LAMP is not required to be a registered investment company under theInvestment Company Act of 1940, its investments policies are similar to those established by Rule 2a7,which governs registered money market funds. The primary objective of LAMP is to provide a safeenvironment for the placement of public funds in short-term, high quality investments. The LAMPportfolio includes only securities and other obligations in which local governments in Louisiana areauthorized to invest. Accordingly, LAMP investments are restricted to securities issued, guaranteed orbacked by the U.S. Treasury, the U.S. Government or one of its agencies, enterprises orinstrumentalities, as well as repurchase agreements collateralized by those securities. The dollarweighted average portfolio maturity of LAMP assets is restricted to not more than 90 days, and consistsof no securities with a maturity in excess of 397 days. The fair value of investments is determined on aweekly basis to monitor any variances between amortized cost and fair value. For purposes ofdetermining participants' shares, investments are valued at amortized cost. The fair value ofparticipants' position is the same as the value of the pool shares. LAMP is designed to be highly liquidto give it participant's immediate access to their account balances. Investments in LAMP at December31, 2006 amounted to $368,998 and are classified on the Statement of Net Assets as "Investments".

A reconciliation of deposits and investments as shown on the Statement of Net Assets is as follows:

Reported amount of deposits $ 584,487Reported amount of investments 599,473

Total $ 1,183,960

Reported in financial statements:Government-wide $ 1,088,140Fiduciary funds 95,820

Total $ 1,183,960

23


Jennings, Louisiana


3. RECEIVABLES

Accounts receivable at year end are as follows:

Class of Receivable

Due from other governmentsFines and forfeituresLACE programOperating subsidiesTitle FV-D administrativePayments

Less allowance for uncollectibleInterest Receivable

Total

GeneralFund

$ 22,649 $19,34315,536

313

$ 57,841 $

Drug OtherTitle IV-D Forfeiture Funds

- $ - $ - $

14,414

169 3,581

14,583 $ 3,581 $ - $

Total

22,64911,98923,389

14,414

4,063

76,005^^— —r— — — s-

4. INTERFUND RECEIVABLES AND PAYABLES

Interfund balances at year end were as follows:

Due FromGeneral Drug Other

Fund Title FV-D Forfeiture Funds Total$ - $

70710,000

10,707

- $ 12,500 $

1,00013,000

- $ 12,500707

10,0001,000

24,207

Fund Due ToGeneralDrug ForfeitureWorthless CheckPretrial Intervention

The $10,000, $12,500, and the $1,000 amounts listed above represent temporary loans to other funds.These amounts are expected to be repaid within the next fiscal year.

All remaining balances resulted from the timing lag between the dates that (1) interfund goods andservices are provided or reimbursable expenditures occur, (2) transactions are recorded in the accountingsystem, and (3) payments between funds are made.

24


Jennings, Louisiana


5. CAPTIAL ASSETS

Capital assets and depreciation activity is as follows:

VehiclesImprovementsEquipment and furnitureOther

Total

Less accumulated depreciationfor:

VehiclesImprovementsEquipment and furnitureOther

Total accumulateddepreciation

Capital assets, net

BalanceBeginning

49,161 $69,555

240,9747,569

367,259 $

Additions

19,070 $-

11,332-

30,402 $

Deletions

14,995---

14,995

$

$

20,97343,573200,0284,367

268,941

98,318

10,1414,05516,2461,289

31,731

(1,329)

13,003

13,003

1,992

EndingBalance

53,23669,555252,3067,569

382,666

18,11147,628216,2745,656

287,669

94,997

5. PENSION PLANS

A. Louisiana District Attorney's Retirement System

Plan Description. The District Attorney and assistant District Attorneys are members of the LouisianaDistrict Attorneys Retirement System (System), a cost-sharing, multiple-employer defined benefitpension plan administered by a separate board of trustees.

Assistant District Attorneys who earn, as a minimum, the amount paid by the state for assistant DistrictAttorneys and are under the age of 60 at the time of original employment and all District Attorneys arerequired to participate in the System. For members who joined the System before July 1, 1990, and whoelected not to be covered by the new provisions, the following applies: Any member with 23 or moreyears of creditable service regardless of age may retire with a 3 percent benefit reduction for each yearbelow age 55, provided that no reduction is applied if the member has 30 or more years of service. Anymember with at least 18 years of service may retire at age 55 with a 3 percent benefit reduction for eachyear retiring below the age of 60. In addition, any member with at least 10 years of service may retire atage 60 with a 3 percent benefit reduction for each year retiring below the age of 62. The retirement

25


Jennings, Louisiana


benefit is equal to 3 percent of the member's average final compensation multiplied by the number ofyears of his membership service, not to exceed 100 percent of his average final compensation.

For members who joined the System after July 1, 1990, or who elected to be covered by the newprovisions the following applies: Members are eligible to receive normal retirement benefits if they areage 60 and have 10 years of service credit, are age 55 and have 24 years of service credit, or have 30years of service credit regardless of age. The normal retirement benefit is equal to 3.5 percent of themember's final-average compensation multiplied by years of membership service. A member is eligiblefor early retirement if he is age 55 and has 18 years of service credit. The early retirement benefit isequal to the normal retirement benefit reduced 3 percent for each year the member retires in advance ofnormal retirement age. Benefits may not exceed 100 percent of average final compensation. The Systemalso provides death and disability benefits. Benefits are established or amended by state statue.

The System issues an annual publicly available financial report that includes financial statements andrequired supplementary information for the System. That report may be obtained by writing to theLouisiana District Attorneys Retirement System, 2109 Decatur Street, New Orleans, Louisiana 70116-2091, or by calling (504) 947-5551.

Funding Policy. Plan members are required by state statute to contribute 7.0 percent of their annualcovered salary and the District Attorney is required to contribute at an actuarially determined rate. Thecurrent rate is 6.00 percent of annual covered payroll. Contributions to the System also include .2percent of the ad valorem taxes collected throughout the state and revenue sharing funds as appropriatedby the legislature. The contribution requirements of plan members and the District Attorney areestablished and may be amended by state statute. As provided by Louisiana Revised Statute 11:103, theemployer contributions are determined by actuarial valuation and are subject to change each year basedon the result of the valuation for the prior fiscal year. The District Attorney's contributions to the Systemfor the years ending December 31, 2006, 2005, and 2004 were $12,498, $10,798, and $4,367,respectively, equal to the required contributions for each year.

B. Parochial Employees' Retirement System of Louisiana (PERS)

Plan Description. Substantially all employees, exclusive of the District Attorney and the assistantDistrict Attorneys of the District Attorney's office are members of the Parochial Employees' RetirementSystem of Louisiana (System), a cost-sharing multiple-employer defined benefit pension planadministered by a separate board of trustees. The System is composed of two distinct plans, Plan A andPlan B, with separate assets and benefit provisions. All participating employees of the District Attorneyare members of Plan A.

All permanent employees working at least 28 hours per week who are paid wholly or in part from parishfunds and all elected parish officials are eligible to participate in the System. Under Plan A, employeeswho retire at or after age 60 with at least 10 years of creditable service, at or after age 55 with at least 25years of creditable service, or at any age with at least 30 years of creditable service are entitled to aretirement benefit, payable monthly for life, equal to 3 percent of their final-average salary for each yearof creditable service. However, for those employees who were members of the supplemental plan only

26


Jennings, Louisiana


prior to January 1, 1980, the benefit is equal to one percent of their final average salary plus $24 for eachyear of supplemental-plan-only service earned prior to January 1, 1980. Final-average salary is theemployee's average salary over the 36 consecutive or joined months that produce the highest average.Employees who terminate with at least the amount of creditable service stated above and do notwithdraw their employee contributions may retire at the ages specified above and receive the benefitaccrued to their date of termination. The System also provides death and disability benefits. Benefits areestablished by state statute.

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

Funding Policy. Under Plan A, members are required by state statute to contribute 9.5% of their annualcovered salary and the District Attorney of the Thirty-First Judicial District is required to contribute at astatutory rate based on actuarially determined computations. The current rate is 12.75% of coveredpayroll. Contributions to the System also include one-fourth of one percent of the taxes shown to becollectible (except for Orleans and East Baton Rouge parishes) by the tax rolls of each parish. These taxdollars are divided between Plan A and Plan B based proportionately on the salaries of the activemembers of each plan. The contribution requirements of plan members and the District Attorney of theThirty-First Judicial District are established and may be amended by state statute. As provided byLouisiana Revised Statute 11:103, the employer contributions are determined by actuarial valuation andare subject to change each year based on the result of the valuation for the prior fiscal year. The DistrictAttorney of the Thirty-First Judicial District's contribution to the System under Plan A for the yearending December 31, 2006, 2005, and 2004 was $34,969, $32,057, and $28,088, respectively, equal tothe required contribution for each year.

6. CONTINGENCIES

The District Attorney participates in a number of federal and state financial assistance programs. Theseprograms are subject to further financial and compliance audits by the grantor agencies. The amount, ifany, of expenditures which may be disallowed by the granting agencies cannot be determined at thistime. Based on prior experience, the District Attorney feels such amounts, if any, would be immaterial tothe financial statements.

27


Jennings, Louisiana


7. EXCESS OF EXPENDITURES OVER APPROPRIATIONS

The following individual funds had actual expenditures over budgeted appropriations for the year endedDecember 31,2006:

Fund

GeneralDrug ForfeitureWorthless Check

OriginalBudget

$ 1,175,802 $34,57023,386

FinalBudget

1,175,802 $34,57023,386

ActualAmount

1,250,099 $125,51949,247

UnfavorableVariance

74,29790,94925,861

All of the above unfavorable variances were funded by either current year excess of revenues overbudgeted amounts or prior year fund balances.

8. ON-BEHALF PAYMENTS FOR FRINGE BENEFITS AND SALARIES

The Jefferson Davis Parish Police Jury's General Fund and Criminal Court Fund, and the State ofLouisiana pay a portion of the salaries and benefits of the District Attorney's office. These on-behalfpayments have been recorded in the accompanying financial statements, in accordance withGovernmental Accounting Standards Board Statement 24 as intergovernmental revenues andexpenditures as follows:

Intergovernmental Revenues:State $ 191,160Parish 289,825

Total $ 480,985

Expenditures:Salaries and related benefits $ 480,985

The above amounts include $9,412 paid to the District Attorneys Retirement System and $34,969 paidto the Parochial Employees' Retirement System of Louisiana for pension contributions for the DistrictAttorney's employees.

10. RELATED PARTY TRANSACTIONS

Certain operating expenditures of the District Attorney's office have been reimbursed by the ParishPolice Jury, as required by Louisiana law, and are included in the accompanying financial statements asexpenditures. The reimbursements paid by the Police Jury are recorded as intergovernmental revenue inthe accompanying financial statements. These expenditures include among other things the provision of

28


Jennings, Louisiana


office facilities including utilities and insurance. These expenditures have been recorded in the financialstatement as follows:

Salaries and related benefits $ 289,825Communications 25,172Office Supplies 42,056Other Expenditures 23,589Capital Outlay 10,756

Total $ 391,398

Accounts receivable for related amounts at year end amounted to $15,610.

11. RISK MANAGEMENT

The District Attorney's office is exposed to various risks of loss related to torts; theft of, damage to, anddestruction of assets; errors and omissions; injuries to employees; and natural disasters. The DistrictAttorney carries commercial insurance for errors and omissions. All other risks of loss are covered bycommercial insurance provided by the Police Jury. Settled claims resulting from these risks have notexceeded commercial insurance coverage in any of the past three fiscal years.

12. UNCERTAINTY

Subsequent to June 18, 2007, the original date for this report, the Louisiana Legislative Auditor's Officebegan a financial examination of the 31st Judicial District Attorney's office. As of January 11, 2008, theeffects on the accompanying financial statements of this examination are not known.

29

REQUIRED SUPPLEMENTAL INFORMATION

30

DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTGENERAL FUNDBudgetary Comparison ScheduleFor the Year Ended December 31, 2006

REVENUESCommissions on fines and forfeituresIntergovernmental revenues:

FederalStateParish

Charges for servicesInterest earningsOther revenues

Total Revenues


General government - JudicialSalaries and related benefitsAdvertising, dues and subscriptionsCommunicationsRepairs and maintenanaceProfessional servicesInsuranceOffice suppliesOperating suppliesTravel and professional developmentOther expendituresIntergovernmental expenditures:Distributions to other govern ments-LACEDistributions to other agencies

Capital outlay

Total Expenditures

Excess (Deficiency) of Revenues overExpenditures



NET CHANGES IN FUND BALANCE

FUND BALANCE BEGINNING OF YEAR

FUND BALANCE END OF YEAR

Schedule 1

Budgeted

Original

$ 334,905

17,226201,218548,780

2,4508,674

621

1,113,874

773,3219,905

39,1268,9517,0938,397

51,89713,84960,1248,202

176,886-

18,051

1,175,802

(61,928)

Amounts

Final

334,905 $

17,226201,218548,780

2,4508,674

621

1,113,874

723,3219,905

39,1268,9517,0938,397

51,89713,84960,1248,202

176,886-

18,051

1,125,802

(11,928)

ActualAmounts

363,253 $

-

246,165613,394

-16,681

159

1,239,652

838,16911,08933,3859,064

58-

51,07010,96242,35016,778

221,5457,8407,789

1,250,099

(10,447)

VarianceFinal Budget

Positive(Negative)

28,348

(17,226)44,94764,614(2,450)8,007(462)

125,778

(114,848)(1,184)5,741(113)

7,0358,397

8272,887

17,774(8,576)

(44,659)(7,840)10,262

(124,297)

1,481

-

-

(61,928)

341,076

$ 279,148

(11,928)

341,076

$ 329,148 $

(10,447)

341,076

330,629 $

1,481

.

1,481


DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTSPECIAL REVENUE FUNDSTITLE IV-D PROGRAM FUNDBudgetary Comparison ScheduleFor the Year Ended December 31, 2006

REVENUESIntergovernmental revenues:

FederalState

Charges for servicesInterest earnings

Total Revenues


General government - JudicialSalaries and related benefitsAdvertising, dues and subscriptionsCommunicationsOffice suppliesOperating suppliesTravel and professional developmentOther expendituresIntergovernmental expenditures:Distributions to Police Jury

Total Expenditures




NET CHANGE IN FUND BALANCE



Schedule 2

Budgeted Amounts

Original

$ 58,914 $31,723

-

90,637

83,843

1,850

1,9451,980

89,618

1,019

Final

58,914 $31,723

-

90,637

83,843

1,850

1,9451,980

89,618

1,019

ActualAmounts

54,930 $28,297

257

83,484

83,817

1,890

-

-

85,707

(2,223)


Positive(Negative)

(3,984)(3,426)

257

(7,153)

26

(1,890)1,850

1,9451,980

3,911

(3,242)

-

.

1,019

41,403

$ 42,422 $

1,019

41,403

42,422 $

(2,223)

41,403

39,180 $

(3,242)

_

(3,242)


DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTSPECIAL REVENUE FUNDSDRUG FORFEITURE FUNDBudgetary Comparison ScheduleFor the Year Ended December 31, 2006

REVENUESCommissions on fines and forfeituresInterest earnings

Total Revenues


General government - JudicialAdvertising, dues and subscriptionsProfessional servicesOffice suppliesOperating suppliesTravel and professional developmentOther expendituresIntergovernmental expenditures:Distributions to other governments-LACEDistributions to Police JuryDistributions to other agencies

Capital outlay

Total Expenditures




NET CHANGE IN FUND BALANCE



Schedule 3

Budgeted Amounts

Original

$ 1,627 $2,255

3,882

10,329

4,007

20,234

34,570

(30,688)

Final

700,000 $2,255

702,255

10,329

4,007

720,234

734,570

(32,315)

ActualAmounts

711,970 $15,601

727,571

20,96611,9923,389

67410,03844,193

14,46917,078

125,519

602,052


Positive(Negative)

11,97013,346

25,316

(10,637)(11,992)

618(674)

(10,038)676,041

(14,469)(17,078)

609,051

634,367

-

.

(30,688)

85,991

$ 55,303 $

(32,315)

85,991

53,676 $

602,052

85,991

688,043 $

634,367

634,367


DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTNotes to Budgetary Comparison ScheduleFor the Year Ended December 31, 2005

A. BUDGETARY PRACTICES

General Budget Practices The District Attorney follows the following procedures in establishing budgetary datareported in the accompanying budgetary comparison schedule:

Pursuant to the Louisiana Government Budget Act (LSA-RS 39:1301-1314), the District Attorney is required to adoptan annual budget no later than fifteen days prior to the beginning of each fiscal year.

Each year prior to December 15th, the District Attorney develops a proposed annual budget for the general fund and allspecial revenue funds. The operating budget includes proposed expenditures and the means of financing them. Theproposed budget is advertised as available for public inspection at least 10 days prior to final adoption simultaneouslywith a notice of the date of public hearing. At the conclusion of the public hearing the budget is adopted by theDistrict Attorney through a formal budget resolution.

Appropriations (unexpended budget balances) lapse at end of fiscal year.

Encumbrance accounting, under which purchase orders are recorded in order to reserve that portion of the applicableappropriation, is not employed.

Formal budget integration (within the accounting records) is not employed as a management control device. Allbudgets are controlled at the object level. Budget amounts included in the accompanying financial statements includethe original budget and all subsequent amendments. All budget revisions are approved by the District Attorney.

Budget Basis of Accounting All governmental funds budgets are prepared on the modified accrual basis ofaccounting, a basis consistent with accounting principles generally accepted in the United States of America (GAAP).Legally, the District Attorney cannot budget total expenditures and other financing uses which would exceed totalbudgeted revenues and other financing sources including beginning fund balance. State statutes require the DistrictAttorney to amend the budgets to prevent overall projected revenues, expenditures, or beginning fund balance fromcausing an adverse budget variance of five percent or more in an individual fund. The District Attorney approvesbudgets at the object level and management is allowed to transfer amounts between line items within an object.

B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS IN INDIVIDUAL MAJOR FUNDS

The following budgeted major funds had actual expenditures over budgeted expenditures for the fiscal year:Final Unfavorable

Major Fund Budget Actual VarianceGeneral Fund $ 1,125,802 $ 1,250,099 $ 124,297Worthless Check Fund 23,386 49,247 25,861

Reason for unfavorable variance: General fund variance was due primarily to higher than anticipated salaries andbenefits and distributions of LACE to other governments. Drug forfeiture special revenue fund variance was due tohigher than anticipated advertising expenses for drug education and promotion programs. Worthless Check Fundspecial revenue fund variance was due to higher that anticipated travel and professional development expenses.

34

SUPPLEMENTAL INFORMATION

35

JEFFERSON DAVIS PARISH SCHOOL BOARDNONMAJOR SPECIAL REVENUE FUNDSCombining Balance SheetDecember 31,2006 Schedule 4

ASSETSCashInvestmentsReceivablesDue from other funds

TOTAL ASSETS

LIABILITIES AND FUND BALANCESAccounts payableSalaries and wages payablePayroll deductions, withholdings, and

accrued salaries payableDue to other governmentsDeferred revenueDue to other funds

Total Liabilities

FUND BALANCESUnreserved - undesignated

Total Fund Balances

TOTAL LIABILITIES ANDFUND BALANCES

WorthlessCheck Fund

6,271 $29,574

10,000

45,845

3,079

3,079

42,766

42,766

$ 45,845 $

PretrialIntervention

Fund

1,127 $

1,000

2,127

2,127

2,127

Total

7,39829,574

11,000

47,972

3,079

3,079

44,893

44,893

2,127 $ 47,972

36

JEFFERSON DAVIS PARISH SCHOOL BOARDNONMAJOR SPECIAL REVENUE FUNDSCombining Statement of Revenues, Expenditures, and Changes in Fund BalancesFor the Year Ended December 31, 2006 Schedule 5

REVENUESCommissions on fines and forfeituresIntergovernmental revenues:

FederalState

Charges for servicesUse of money and propertyOther revenues

Total Revenues


General government - JudicialSalaries and related benefitsAdvertising, dues and subscriptionsCommunicationsRepairs and maintenanaceProfessional servicesInsuranceOffice suppliesOperating suppliesTravel and professional developmentOther expendituresIntergovernmental expenditures:Distributions to other agencies

Capital outlayTotal Expenditures

EXCESS (Deficiency) OF REVENUESOVER EXPENDITURES


Total other financing sources (uses)

NET CHANGES IN FUND BALANCES

FUND BALANCES BEGINNING OF YEAR

FUND BALANCES END OF YEAR

WorthlessCheck Fund

36,002 $

5601,406

37,968

1,531

66410,185

3,081459

29,784

3,54349,247

(11.279)

(11,279)

54,045

42,766 $

PretrialIntervention

Fund

15,087

15,087

13,9007,972

76

21,948

(6.861)

(6,861)

8,988

Total

36,002

15,6471,406

53,055

1,531

66424,0857,9723,081459

29,78476

3,54371,195

(18.140)

2,127 $

(18,140)

63.033

44,893

37

DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTAGENCY FUNDSCombining Balance SheetDecember 31, 2006 Schedule 6

ASSETSCashReceivables:

Others

TOTAL ASSETS

EscrowFund

DrugAsset

SeizureFund

32,930

33

48,389

87

32,963 48,476

WothlessChecksEscrowFund

14,501

14,501

Total

95,820

120

95,940

LIABILITIESDue to others

TOTAL LIABILITIES

32,963 48,476

32,963 48,476

14,501 95,940

14,501 95,940

38

DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTAGENCY FUNDSSchedule of Changes in Deposits Due OthersDecember 31,2006

Balance at Beginning of Year

Additions:Restitution collectedFunds seized and auction proceedsInterest earned

Total Additions

Deductions:Distributed to victimsDistributed to defendantsDistributed to sheriffDistributed to district attorneyDistributed to criminai court fundDistributed to indigent defender boardDistributed to state policeProceedings and forfeiture expenses

Total Deductions

Balance at End of Year

11,588 25,165 139,262

Schedule 7

EscrowFund30,085

14,46610,500

24,966

Drug AssetsSeizure

Fund3,474,195

158,22138,878

197,099

WorthlessChecks

Escrow Fund12,497

191,991

191,991

Total3,516,777

206,457168,72138,878

414,056

176,015

2,6253,1502,6252,100

--

22,088

74,957710,085711,970

-2,058,924

41,7173,622,818

7,99342,732

-

-

--

189,987

85,575755,967714,595

2,1002,058,924

41,7173,834,893

32,963 $ 48,476 $ 14,501 $ 95,940

39

OTHER REPORTS REQUIRED BYGOVERNMENTAL AUDITING STANDARDS

40

Mike B. Gillespie, CPA(A Professional Accounting Corporation)

414 E. Nezpique StreetPO Box 1347

Jennings, LA 70546

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTA UDITING STANDARDS

Honorable Michael C. CassidyDistrict AttorneyThirty-First Judicial DistrictJennings, Louisiana

I was engaged to audit the financial statements of the governmental activities, each major fund, and theaggregate remaining fund information of the District Attorney of the Thirty-First Judicial District (DistrictAttorney), a component unit of the Jefferson Davis Parish Police Jury, as of and for the year endedDecember 31, 2006, which collectively comprise the District Attorney's basic financial statements and haveissued my report thereon dated June 18, 2007, except for Note 12, as to which the date is January 11, 2008.Except as discussed in the preceding sentence, I conducted my audit in accordance with auditing standardsgenerally accepted in the United States of America and the standards applicable to financial audits containedin Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing my audit, I considered the District Attorney's internal control over financialreporting as a basis for designing my auditing procedures for the purpose of expressing my opinions on thefinancial statements but not for the purpose of expressing an opinion on the effectiveness of the DistrictAttorney's internal control over financial reporting. Accordingly, I do not express an opinion on theeffectiveness of the District Attorney's internal control over financial reporting.

My consideration of the internal control over financial reporting was for the limited purpose described in thepreceding paragraph and would not necessarily identify all deficiencies in the internal control over financialreporting that might be significant deficiencies or material weaknesses. However, as discussed below, Iidentified certain deficiencies in internal control over financial reporting that I consider to be significantdeficiencies.

A control deficiency exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent or detect misstatementson a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, thatadversely affects the District Attorney's ability to initiate, authorize, record, process, or report financial datareliably in accordance with generally accepted accounting principles such that there is more than a remotelikelihood that a misstatement of the District Attorney's financial statements that is more thaninconsequential will not be prevented or detected by the District Attorney's internal control. I consider the

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deficiencies described in the accompanying schedule of findings and responses, as items 2006-1, 2006-2,2006-3, to be significant deficiencies in internal control over financial reporting.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results inmore than a remote likelihood that a material misstatement of the financial statements will not be preventedor detected by the District Attorney's internal control.

My consideration of the internal control over financial reporting was for the limited purpose described in thefirst paragraph of this section and would not necessarily identify all deficiencies in the internal control thatmight be significant deficiencies and, accordingly, would not necessarily disclose all significant deficienciesthat are also considered to be material weaknesses. However, of the significant deficiencies described above,I consider items 2006-2 and 2006-3 to be material weaknesses.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether District Attorney's financial statements are free ofmaterial misstatement, I 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 thedetermination of financial statement amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of my audit and, accordingly, I do not express such an opinion. The resultsof my tests disclosed instances of noncompliance or other matters that are required to be reported underGovernment Auditing Standards and which are described in the accompanying schedule of findings andresponses as items 2006-3, 2006-4, and 2006-5.

The District Attorney's response to the findings identified in my audit is described in the accompanyingschedule of findings and responses. I did not audit the District Attorney's responses and, accordingly, Iexpress no opinions on them.

This report is intended for the information of the District Attorney, management, others within thisorganization, and the Louisiana Legislative Audit Advisory Council and is not intended to be and should notbe used by anyone other than these specified parties. However, this report is a matter of public record and itsdistribution is not limited.

Tttt&e %. fytteyue. &>*.Jennings, LouisianaJune 18, 2007, except for Finding Item 2006-3,as to which the date is January 11,2008

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DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTSCHEDULE OF FINDINGS AND RESPONSES

For the Year Ended December 31, 2006

SECTION I - SUMMARY OF AUDITOR'S RESULTS

1. The auditor's report disclaimed an opinion on the financial statements of the District Attorney of theThirty-First Judicial District.

2. Three control deficiencies were disclosed during the audit of the financial statements as is reported in theIndependent Auditor's Report on Internal Control Over Financial Reporting and on Compliance andOther Matters Based on an Audit of Financial Statements Performed in Accordance with GovernmentAuditing Standards.

3. Two instances of noncompliance material to the financial statements of the District Attorney of theThirty-First Judicial District were disclosed during the audit.

4. Since the District Attorney of the Thirty-First Judicial District did not require a Single Audit, a report onreportable conditions concerning internal control over major federal award programs was not applicable.

5. Since the District Attorney of the Thirty-First Judicial District did not require a Single Audit, an auditor'sreport on compliance for the major federal award programs was not applicable.

6. Since the District Attorney of the Thirty-First Judicial District did not require a Single Audit, a report ofaudit findings relative to the major federal award programs was not applicable.

7. A management letter was not issued.

8. The programs tested as major programs included:

CFDA No. Program Name

Not applicable Not applicable

9. The threshold used for distinguishing between Type A and B federal award programs was not applicable.

10. A statement as to whether the auditee qualified as a low-risk auditee under OMB Circular Q-133 was notapplicable.

SECTION II - INTERNAL CONTROL AND COMPLIANCE FINDINGS

Current Year Findings:

Item: 2006-1Finding/Specific Requirement: Lack of Segregation of DutiesCondition: Lack of segregation of duties exists in the cash area.Cause of Condition: Certain personnel perform accounting duties in the cash area which under internalcontrol standards are considered incompatible activities.Effect of Condition: Creates risks to safeguarding of cash balances.Recommendation: If feasible, management should employ better segregate of duties in the cash area. Theindividuals that have authority to sign checks should not be the same person that prepares checks and alsomaintains the general ledger system. Also, checks should not be returned to the preparer after checks havebeen signed. Ideally they should be mailed by someone not associated with the check preparing process or

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the maintaining of the general ledger system. Also, the worthless check collections should not be handled bythe same person that posts the collections to the system.Management Response: The auditor is aware that I am unable to better segregate these duties, due to thelimited number of employees. The auditor is also aware that I have implemented other measures to offset thissituation. I do not allow the person collecting money orders or certified checks (no cash allowed) to depositmoney. The items collected are deposited on a daily basis most of the time. Although checks are returned tothe preparer after obtaining the necessary signatures, I personally sign 95% of the checks in this office. I alsoreview each bank statement before I give them to her for reconciliation. The preparer is an extremely honestand conscientious person. Accordingly, I do not plan to change the segregation of duties; however, I willremove the preparer as a signatory on the bank accounts.

Item: 2006-2Finding/Specific Requirement: Controls over investments.Condition: Investments and earnings on investments were not properly recorded in Forfeited Drug AssetsSpecial Revenue Fund general ledger.Cause of Condition: Investments were not being reconciled on a periodic basis to the general ledger bybookkeeper. This condition allowed purchases of new investments to be reported as expenditures. Inaddition, reinvestment of earnings on investments were not recorded in the general ledger.Effect of Condition: Investments in the Forfeited Drug Assets Special Revenue Fund were understated onbooks by $570,432 and investment earnings were understated by $13,884. Audit adjustments were made andapproved by management to correct this situation.Recommendation: Procedures should be implemented requiring the reconciliation of investments to thegeneral ledger system on a monthly basis.Management Response: I agree with the auditor's findings, and we will implement the proceduressuggested.

Item: 2006-3Finding/Specific Requirement: Credit Card Expenditure ControlsCondition: Documentation of some credit card expenditures was not available during audit fieldwork.Cause of Condition: Documentation to support many credit card purchases chosen hi my test of transactionswas not available during audit fieldwork. My cash disbursements test contained eight checks in payment of94 individual credit card transactions totaling $19,925.28. Of these transactions tested, 43 (45.7%) weremissing itemized receipts totaling $7,220.43. Of the transactions tested, 59 (62.82%) totaling $10,802.18 didnot contained documented business purposes.Effect of Condition: I was unable to determine the business purpose, necessity, or reasonableness of theseexpenditures or if the purchases benefited the District Attorney's office. At least $856.63 of theseexpenditures incurred during an out of town trip to Atlanta, Georgia during the timeframe from December30, 2005 to December 31, 2005, did not appear to have a business purpose associated with the DistrictAttorney's office.Recommendation: I recommend that management implement a credit card usage policy that: 1) outlinesguidelines and restrictions for credit card usage, 2) requires employees to turn in all receipts, includingitemized receipts for meal purchases, 3) requires documentation of the business purpose and attendees of allmeals charged to District Attorney credit cards, and 4) prohibits use of credit cards for personal purchases.All credit card users should sign a form acknowledging their understanding of the policy. In addition, Irecommend that any expenditures contained in the aforementioned population not associated with necessary

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expenditures of the District Attorney's office should be reimbursed to the District Attorney's officeimmediately.Management Response: I believe that better communication between this office and the auditor during hisfield work could have been resolved most, if not all, of this finding. I do agree that we should develop acredit card usage policy, and have any employee card user sign a statement acknowledging their receipt andunderstanding of the policy.

Item: 2006-4Findings/ Specific Requirement: Budgetary Authority and ControlCondition: Actual expenditures varied adversely with budgeted amounts in General Fund and WorthlessCheck Special Revenue Fund by five percent or more. This condition also occurred in 2005 and was reportedas item 2005-2.Cause of Condition: Bookkeeper did not monitor, amend budget, or notify the District Attorney in writingbefore year end that the actual expenditures exceeded budgeted amounts by more than five percent.Effect of Condition: Budget control and monitoring procedures were not in compliance with LRS 39:1311.Recommendation: Management should implement procedures that will ensure compliance with LRS39:1311.Management Response: Although I agree with the auditor's finding, he fails to state that we attempted toamend the budget in December, 2006, to comply with this provision. We will meet with the auditor to obtaina better explanation of how he arrived at his figures, and then implement the procedures suggested in order tobe in compliance with La R.S. 39:1311.

Item: 2006-5Finding/Specific Requirement: Expenditure ComplianceCondition; Incurrence of an expenditure which may be in noncompliance with expenditure restriction lawsof Louisiana.Cause of Condition: An expenditure in the amount of $1,291.81 paid to a catering company duringDecember of 2006, which contained a description "for Christmas party", was reported in meals expense inWorthless Check Special Revenue Fund.Effect of Condition: This expenditure may be in noncompliance with Article VII, Section 14 of the 1974Louisiana Constitution which contains the constitutional standard for the lawful use of public funds andproperty.Recommendation: Management should obtain an opinion from the Louisiana State Attorney General'soffice to determine whether this type of expenditure is allowable.Management Response: I require employees to attend a meeting at the end of the year in order to discusswhat we did right and wrong during the preceding year, and how we can improve services to ourconstituents. This meeting is held after hours, because it is impossible to gather everyone during businesshours. Moreover, I believe it is important to have the employees' respective spouses or significant othersthere, so they can better understand the duties and stress of this office. Then, they can be supportive andunderstanding of the employees, and our performance will be better. The office does provide food in lieu ofovertime pay, which is acceptable to all. I believe this meeting definitely improves the overall performanceof this office. Finally, we have been having this meeting every year for seventeen years, and nothing wassaid by the auditor, until the new bookkeeper referred to the meeting as a party. I agree that the term"Christmas Party" was an incorrect and inappropriate term on the check. I agree that office funds may not be

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used for a party; however, I believe office funds may be used to provide refreshments at an office meeting,conference, seminar, etc.

Prior Year Findings:

See item 2006-4 for description.

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DISTRICT ATTORNEY OF THE THIRTY-FIRST JUDICIAL DISTRICTJennings, Louisiana

MANAGEMENT'S STATUS OF PRIOR YEAR AUDIT FINDINGSFor the Year Ended December 31, 2006

SECTION I - Internal Control and Compliance Findings:

See current year findings for response to item 2006-4.

SECTION H - Internal Control and Compliance Material to the Federal Awards:

No findings reported.

SECTION IH - Management Letter:

No findings reported.

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MICHAEL C. CASSIDYDISTRICT ATTORNEY

31 ST JUDICIAL DISTRICT

STATE OF LOUISIANA

POST OFFICE BOX 1 388

JENNINGS, LOUISIANA 7O5A6TELEPHONE (337) 824-1893

FAX (337) 824-3311

BENNETT R. LA POINTASSISTANT DISTRICT ATTORNEY

KEVIN D. HILUCANASSISTANT DISTRICT ATTORNEY

STAGEY C. NAQUINASSISTANT DISTRICT ATTORNEY July 2,2007

RICHARD M. ARCENEAUXASSISTANT DISTRICT ATTORNEY

CHRIS A. MYERSINVESTIGATIVE ASSISTANT

RODNEY M. STEEDADMINISTRATIVE ASSISTANT

Mr. Mike Gillespie, CPAP.O. Box 1347Jennings, LA 70546

RE: 2006 Audit

Dear Mr. Gillespie:

As you know, I question some of your findings in the 2006 audit; however, I do agree thatbetter internal controls should improve the situation. My particular responses to your findings areas follows:

ITEM 2006-1

The auditor is aware that I am unable to better segregate these duties, due to the limitednumber of employees. The auditor is also aware that I have implemented other measures to offsetthis situation. I do not allow the person collecting money orders or certified checks (no cashallowed) to deposit the money. The items collected are deposited on a daily basis most of the time.Although checks are returned to the preparer after obtaining the necessary signatures, I personallysign 95% of the checks in ths office. I also review each bank statement before I give them to her forreconciliation. The preparer is an extremely honest and conscientious person. Accordingly, I do notplan to change the segregation of duties; however, I will remove the preparer as a signatory on thebank accounts.

ITEM 2006-2

I agree with the auditor's findings, and we will implement the procedures suggested.

ITEM 2006-3

I believe that better communication between this office and the auditor during his fieldworkcould have resolved most, if not all, of this finding. I do agree that we should develop a credit card

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July 2, 2007Page 2

usage policy, and have any employee card user sign a statement acknowledging their receipt andunderstanding of the policy.

ITEM 2006-4

Although I agree with the auditor's finding, he fails to state that we attempted to amend thebudget in December, 2006, to comply with this provision. We will meet with the auditor to obtaina better explanation of how he arrived at his figures, and then implement the procedures suggestedin order to be in compliance with La R.S. 39:1311.

ITEM 2006-5

I require employees to attend a meeting at the end of the year in order to discuss what we didright and wrong during the preceding year, and how we can improve services to our constituents.This meeting is held after hours, because it is impossible to gather everyone during business hours.Moreover, I believe it is important to have the employees' respective spouses or significant othersthere, so they can better understand the duties and stress of this office. Then, they can be supportiveand understanding of the employees, and our performance will be better. The office does providefood in lieu of overtime pay, which is acceptable to all. I believe this meeting definitely improvesthe overall performance of this office. Finally, we have been having this meeting ever year forseventeen years, and nothing was said by the auditor, until the new bookkeeper referred to themeeting as a party.

I agree that the term "Christmas Party" was an incorrect and inappropriate term on the check.I agree that office funds may not be used for a party; however, I believe office funds may be used toprovide refreshments at an office meeting, conference, seminar, etc.

If you have any questions, please do not hesitate to call.

Sincerely,

MICHAEL C. CASSIDYDISTRICT ATTORNEY

MCC/cc

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Addendum to Management's Corrective Action Plan for Current Year Audit Findings(Updated corrective action for Finding Item 2006-3, dated January 11,2008)

The issue at hand regarding credit card receipts was primarily the result of a misinterpretation ofthe documentation guidelines. Additionally, my staff and I were not aware that the businesspurpose had to be written on each receipt. I have reimbursed the office for several credit cardtransactions that did not have proper supporting documentation, and have provided supportingdocumentation on several other transactions. I have also reimbursed the office for transactionswherein the office credit card was used mistakenly. I have taken corrective actions to ensure thatthe office credit card now has a unique appearance to avoid unintentional use on non-office relatedpurchases. I have also instituted a new credit card policy that outlines the guidelines andrestrictions for credit card usage, and requires proper receipts. All employees with an office creditcard have signed a statement acknowledging their receipt and understanding of this new policy.

THIS CORRECTIVE ACTION PLAN HAS BEEN PREPARED BY MANAGEMENT

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