/OJ-?^
Calcasieu Parish Tax Agency Fund
Of fhe Calcasieu Parish School Board
Lake Charles, Louisiana
Financial Statements
As of and for the Year Ended June 30, 2010
Under provisions o\s\Bie law. this r^^^QorX is a public
Document. Acopy of tine repcrihas been submitted to
the entity and otiier appropriate public officials. The
report is available for public inspection at the Baton
F^ouge office of the LegisiativeAuditor and. where
appropriate, at the office of the parish clerk of court.
Release Date
cl^'^hf
Calcasieu Parish Tax Agency Fund
Of the Calcasieu Parish School Board
Table of Contents
Page
INDEPENDENT AUDITORS' REPORT
1 -2
FINANCIAL STATEMENT
Statement of Fiduciary Assets and Liabilities
Notes to the Financial Statements
Index
Notes
4
5-7
OTTiER REPORT JlEQUIRhD BY GOVERNMENT A UDITING STANDARDS
Report on Intemal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Govemment Auditing Standards
8-9
Schedule of Finding and Questioned Costs
OTHER INFORMATION
Corrective Action Plan for Current Year Finding and Questioned Costs
3
10
11
12
ALLEN, GREEN & WILLIAMSON, LLP
Tim Green, CPA
Margie Williamson, CPA
Amy Tyncs, CPA
CERTIFIED PUBLIC ACCOUNTANTS
P. O. Box 6075
Monroe. LA 71211-^075
2441 Tower Drive
Telephone: (318) 388-4422
Monroe, LA 71201
Ihe CPA.
Never Underestimate TTie Value;
Fax: (318)388-4664
Toll-free: {888)741-^205
www.allengreencpa.com
Ainiec BuchauEiB, CPA
Rachel Davis, CPA
Jaime Esswein, CPA
Diane FcrschofF, CPA
Joshua [.egg, CPA
Brian McBride, CPA
Jaunicia Mcrccr, CPA
CiDdy Thomason, CPA
EnrtslL. Allen, CPA
(Rctinx!) 1903-2000
INDEPENDENT AUDITORS^ REPORT
Board Members
Calcasieu Parish Tax Agency Fund
ofthe Calcasieu Parish School Board
Lake Charles, Louisiana
We have audited the accompanying fmancial statement ofthe Calcasieu Parish Tax Agency Fund ofthe Calcasieu
Parish School Board as of June 30, 2010, as listed in the table of contents. This financial statement is the
responsibility ofthe Calcasieu Parish School Board's management. Our responsibility is to express an opinion on this
financial statement based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to fmancial audits contained in Govemment Auditing Standards issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the fmancial statements are free of material misstatement. An audit includes consideration
of intemal control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe School Board's intemal
control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. Wc believe that our audit provides a reiisonable basis for our opinion.
As discussed in Note 1, the fmancial statement presents only the Calcasieu Parish Tax Agency Fund and do not
purport to, and do not, present tairly the financial position ofthe Calcasieu Parish School Board, as of June 30,2010,
and the changes in its financial position for the year then ended, in conformity with generally accepted accounting
principles in the United States of America.
1
Member: AmeHcaa Institute of Certified Public Accountants, Society of Louisiana Certified Public Accountanu,
American Inslttule of Certified Public Accountants Division for CPA Finns,
Employee BcncGt Audit Quabty Center, and the GoverTimtait Audit Quality Center
Bi]ual Opportunity Employer
In our opinion, thefinancia/statement referred to above presents fairly, in all material respects, thefinancialposition
ofthe Calcasieu Parish Tax Agency Fund ofthe Calcasieu Parish School Board, as of June 30,2010, in conformity
with accounting principles generally accepted in the United States of America.
The Calcasieu Parish Tax Agency Fund has not presented the Management's Discussion and Analysis that accounting
principles generally accepted in the United States of America has determined is necessary to supplement, although not
required to be part of, the basicfinancialstatements.
In accordance with Govemment Auditing Standards, we have also issued our report dated January 7,2011, on our
consideration ofthe Calcasieu Parish Tax Agency Fund's intemal control overfinancialreporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The
purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion ofthe intemal control overfinancialreporting
or on compliance. That report is an integral part of an audit performed in accordance with Govemment Auditing
Standards and should be considered in assessing the results of our audit
The information identified in the table of contents as other information has not been subjected to the auditing
procedures applied in the audit ofthefijiancialstatement and, accordingly, we express no opinion on it
ALLEN, GREEN & WILLIAMSON, LLP
Monroe, Louisiana
January 7,2011
Calcasieu Parish Tax Agency Fund
Ofthe Calcasieu Parish School Board
Statemeot of Fiduciary Assets and Liabilities
June 30, 2010
ASSETS
Cash
Accounts receivable sales tax vendors, net
Cash restricted
$
142,146
18,624,503
7,322,815
26,089,464
Total Assets
LIABILITIES
Deposits due others
Taxes paid under protested from restricted assets
18,766,649
7,322,815
$26,089,464
Total Liabilities
The notes to the financial statements arc an integral part of this statement.
3
Calcasieu Parish Tax Agency Fund
Of the Calcasieu Parish School Board
Notes to the Financial Statements
June 30,2010
I>{L)EX
Page
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
5
A.
REPORTING ENTITY
5
B.
FUND ACCOUNTS
5
C.
BASIS OF ACCOUNTING
5
D.
USE OF ESTIMATES
5
NOTE 2 - DEPOSITS
6
NOTE 3 - DEPOSITS DUE OTHERS
6
NOTE 4-ACCOUNTS RECEIVABLE
7
NOTE 5 - COMMIT\ffiNTS AND CONTTNGENCIES
7
NOTE 6 - TAXES PAID UNDER PROTEST
7
NOTE 7 - PRIOR PERIOD ADJUSTMENT
7
Calcasieu Parish Tax Agency Fund
Ofthe Calcasieu Parish School Board
Notes to the Financial Statements
June 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Calcasieu Parish 1 ax Agency Fund
has been formed under joint agreement ofthe Calcasieu Parish School Board, the Calcasieu Parish Police Jury, the
City of Lake Charles, the City of Sulphur, the Town of Iowa, the Town of DeQuincy, the Town of Vinton, the Town
of West Lake, Law Enforcement #1, and the Southwest Tourist Bureau for the collection of sales, use taxes and other
fees, in accordance with Louisiana Revised Statutes 33:2844. The Calcasieu Parish Tax Agency charges the Law
Enforcement #1 district a collection fee of 0.25% yet not to exceed 1.0% of total collections to cover operating costs
ofthe Calcasieu Parish Tax Agency Fund ofthe Calcasieu Parish School Board. The Southwest Tourist Bureau is
charged a collection fee based on a proportionate share ofthe operating cost ofthe Calcasieu Parish Sales Tax
Agency. This collection fee amount varies each month based on the level of operating expenses during that month.
The Calcasieu Parish Tax Agency charges the remaining joint govemmental entities a collection fee of 1% of total
collections to cover operating costs for Calcasieu Parish Tax Agency Fund ofthe Calcasieu Parish School Board. The
minimum amount that shall be paid each year by the Town of Iowa, the Town of Dequincy, and the Town of Vinton
is $1,000.
A. REPORTING ENTITY Forfinancialreporting purposes, in conformance with GASB Statement No, 14, the
Calcasieu Parish Tax Agency Fund is an agency fund of the Calcasieu Parish School Board. Accordingly, the
accompanyingfinancialstatement presents only the accounts ofthe tax agency fund and is not intended to present
fairly the financial position and results of operations of the Calcasieu Parish School Board in conformity with
accounting principles generally accepted in the United States of America. The Calcasieu Parish Tax Agency Fund is
included as part ofthefinancia!statements ofthe Calcasieu Parish School Board.
B. FUND ACCOUNTS A fund is a separate accounting entity with a self-balancing set of accounts that comprises
its assets, liabilities, fiind equity, revenues, and expenditures.
Funds are classified into one category, fiduciary. The category, in turn, is divided into separate "fund typyes."
Fiduciary fimds are used to account for assets held for others. The tax agency fund requires the use of a fiduciary
fijnd as described below:
Fiduciary Fund - The Calcasieu Parish Tax Agency Fund is used to account for the collection and distribution
of sales and use taxes imposed by the various taxing authorities within the parish and also occupancy taxes that
are levied on hotel rooms, including overnight camping facilities. The agency fiind is custodial in nature (assets
equal liabilities) and does not involve measurement of results of operations.
C. BASIS OF ACCOUNTING The basis of accounting for an agency fund is the accrual basis. The
measurement focus is custodial, since the fund is not involved with the performance of govemmental services. An
agency fund has no revenues or expenditures and therefore there is no fund balance or need to measure the results of
operations for a period.
D. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date ofthe fmancial statement and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates.
Calcasieu Parish Tax Agency Fund
Of the Calcasieu Parish School Board
Notes to the Financial Statements
June 30, 2010
NOTE 2 - DEPOSITS At June 30, 2010, the Tax Agency has cash and cash equivalents (book balances) totaling
$7,464,961. hicluded in this amount $7,322,815 is restricted assets.
Deposits are stated at cost, which approximates fair value. Under state law, these deposits (or the resuUing bank
balances) must be secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank.
The fair value of the pledged securities plus the federal deposit insurance must at all times equal the amount on
deposit with the fiscal agent. These securities are held in the name ofthe pledging fiscal agent bank in a holding or
custodial bank that is mutually acceptable to both parties.
Custodial Credit Risk - Deposits: The bank balance was $7,464,512. Iji the case of deposits this is dieriskthat in the
event of a bank failure, the Tax Agency fund deposits may not be returned to it. TTie bank balance was fully covered
by federal depository insurance at June 30,2010. Even though the pledge securities are considered uncollateralized
under the provisions of GASB Statement 3, Louisiana Revised Statue 39:1229 imposed a statutory requirement on the
custodial bank to advertise and sell the pledged securities within 10 days of being notified by the Tax Agency the
fiscal agent has failed to pay deposited funds upon request.
NOTE 3 - DEPOSITS DUE OTHERS A summary of changes in deposits due others for the year ended June 30,
2010, is as follows:
BALANCE, Beginning
PLUS: Prior Year Hotel-Motel Tax Receivable
BALANCE, Beginning as restated
% 20,641,007
284,094
20,925,101
ADDITIONS:
Sales tax collections
202,131.498
DEDUCTIONS:
Taxes distributed to others:
Calcasieu Parish School Board
Calcasieu Parish Police Jury
City of Lake Charles
City of Sulphur
Town of Iowa
Town of DeQuincy
To^vn of Vinton
Town of Westlake
Law Enforcement District #1
Southwest Tourist Bureau
Transfer to School Board- Hotel-Motel Collection Fee
82,137.731
30.649.033
42,031,916
11,967,073
1,250,877
1.225,638
832,617
1,940,684
29,461,626
2,772,189
20,566
204,289.950
Total deductions
BALANCE, Ending
$
18,766,649
Calcasieu Parish Tax Agency Fund
Of the Calcasieu Parish School Board
Notes to the Financial Statements
June 30, 2010
NOTE 4 - ACCOUNTS RECEIVABLE The balance in accounts receivable ($ 18,624,503) represents sales tax and
occupancy tax collections in July, 2010 for June sales and the total of delinquent accounts at year end, which is net of
allowance for doubtful accounts of $ 1,515,892.
NOTE 5 - COMMITMENTS AND CONTINGENCIES At June 30.2010, the Calcasieu Parish Tax Agency was
involved in multiple litigations. The lawsuits are in regard to taxes paid under protest by various vendors. There are
currently six pending cases where the vendor hasfiledfor a refund of taxes paid under protest. If the Tax Agency
wins these pending cases, then the taxes paid under protest plus statutory interest will be retained by the Tax Agency.
If the Tax Agency loses, then the taxes paid under protest plus statutory interest will be refimded to the vendor.
NOTE 6 - TAXES PAID UNDER PROTEST There is currently $7,322,815 in Taxes Paid Under Protest. There
was one vendor that paid a total of $1,447,236 in taxes paid under protest during the 2009-2010 year. This vendor
paid these taxes in June of 2010 and is seeking a refund for the payment of these taxes. The remaining $5,875,578 is
attributable to various other vendors which have paid taxes under protest and interest that has been eamed on those
payments. Taxes paid under protest are being held in a separate bank account pending the outcome of any litigation
and requests for refunds.
NOTE 7 - PRIOR PERIOD ADJUSTMENT An adjustment of $284,094 was made for the total ofthe hotel-motel
tax that was collected in July 2009 and was not reported as a receivable in the prior year. Therefore, assets were
understated in the prior year by this amoimt.
Otdtred)
ALLEN, GREEN & WILLIAMSON, LLP
1963 B 2000
CERTIFIED PUBLIC ACCOUNTANTS
P. O. Box 6075
Tim Green, CPA
Mareie Williamson, CPA
Amy Tynes, CPA
Monroe, LA 71211-6075
2441 Tower Drive
Telephone; (318) 388-4422
Monroe. LA 71201
IfhtCPA.
Never URderestimate The Value.
Fax: {318)388-4664
Tol[-free: (888)741-0205
www.allengreencpa.com
Aioaec Buchanan, CPA
Rachel Davis, CPA
Jaime Esswein, CPA
Diane Ferschoff, CPA
Joshua Lcgg, CPA
Brian McBride, CPA
Jaunicia Mercer, CPA
Cindy Thomason, CPA
Eimst L AUco, CPA
(Aetircd)
1963 - 200C
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing Standards
Board Members
Calcasieu Parish Tax Agency Fund
ofthe Calcasieu Parish School Board
Lake Charles, Louisiana
We have audited the financial statement ofthe Calcasieu Parish Tax Agency Fund ofthe Calcasieu Parish School
Board as of June 30,2010, and have issued our report thereon dated January 7, 2011. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Govemment Auditing Standards, issued by the Comptroller General ofthe United States.
As discussed in Note 1 ofthe notes to the fmancial statements, thefinancialstatement ofthe Calcasieu Parish Tax
Agency Fund is intended to present only the assets and liabilities ofthe Calcasieu Parish School Board that is
attributable to the transactions ofthe Calcasieu Parish Tax Agency Fund,
Intemal Control Over Financial Reporting
In planning and performing our audit, we considered the Calcasieu Parish Tax Agency Fund ofthe Calcasieu Parish
School Board's intemal control over financial reporting as a basis for designing our auditing procedures for the
purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness ofthe Calcasieu Parish Tax Agency Fund ofthe Calcasieu Parish School Board's intemal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness ofthe Calcasieu Parish Tax
Agency Fund for the Calcasieu Parish School Board's internal control over financial reporting.
A deficiency in intemal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or combination ofdeficiencics, in intemal
control, such that there is a reasonable possibility that a material misstatement ofthe entity'sfinancialstatements will
not be prevented, or detected and corrected on a timely basis.
Our consideration of intemal control over financial reporting was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in intemal control overfinancialreportmg
that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in
intemal control over fmancial reporting that we consider to be material weaknesses, as defined above. However, we
identified a certain deficiency in internal control overfinancialreporting, described in the accompanying schedule of
findings and questioned costs as item 10-Fl that we consider to be a significant deficiency in intemal control over
financial reporting. A significant deficiency is a deficiency, or a combination of deficiencies, in mtemal control that
is less severe than a material weakness, yet important enough to merit attention by those charged with govemance.
8
Member: American Institute ofCemTieil Public Accountants, Society of Louisiana Certified Public Accountants,
American Institute of Certiiicd Public Accountants Division for CPA Finns,
Employee Benefit Audit Quality Center, and the Oovemmcat Audit Quait^ Center
Equal opportunity FjDployer
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Calcasieu Parish Tax Agency Fund ofthe Calcasieu
Parish School Board'sfinancialstatement is free of material misstatement, we perfonned tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
The Calcasieu Parish Tax Agency Fimd ofthe Calcasieu Parish School Board's response to thefindingidentified in
our audit is described in the accompanying corrective action plan for current yearfindingsand quesfioned costs. We
did not audit the Tax Agency's response and, accordingly, we express no opinion on it.
This report is intended solely for the information and use of the Board, management, others within the entity,
Calcasieu Parish Police Jury, the City of Lake Charles, the City of Sulphur, the Town of Iowa, Town of DeQuincy,
Town of Vinton, Town of West Lake, Law Enforcement District 3^1, and Southwest Tourist Bureau, and is not
intended to be and should not be used by anyone otlier than the specified parties. Although the intended use of this
letter may be limited, under Louisiana Revised Statute 24:513 this letter is distributed by the Office ofthe Louisiana
Legislative Auditor as a public document.
ALLEN, GREEN & WILLL\MSON, LLP
Monroe, Louisiana
Januar>'7,2010
Calcasieu Parish Tax Agency Fund
Of the Calcasieu Parish School Board
Schedule of Finding and Questioned Costs
For Year Ended June 30, 2010
Reference # and title:
10-Fl
Internal Control Over Sales Tax Collections
Entity-wide or program/department specific: Thisfindingis entity-wide.
Criteria or specific requirement: Good intemal controls over sales tax collections should include procedures to
ensure proper documentation of timeliness of sales tax deposits.
Condition: During the testing of sales tax collections remitted to the Sales Tax Agency, it was noted that the Sales
Tax Agency is not documenting the date sales tax returns are received. Therefore, the auditor was unable to
determine if the funds collected were deposited in a timely manner.
Possible asserted effect (cause and effect):
Cause: The Sales Tax Agency does not document the date sales tax retums are received at fhe Agency to
begin processing.
Effect: The funds collected from sales tax returns could possibly be deposited untimely, which weakens
intemal control.
Recommendations to prevent future occurrences: The Sales Tax Agency should implement procedures lo
document the date sales tax returns are received, either through stamping the date on the return, keeping a collection
log, or initialing and dating the return.
10
Calcasien Parish Tax Agency Fund
OTHER INFORMATION
Calcasieu Parish Tax Agency Fund
Ofthe Calcasieu Parish School Board
Corrective Action Plan for Current Year Finding and Questioned Costs
For Year Ended June 30, 2010
Reference # and title:
10-Fl
Internal Control Over Sales Tax Collections
Condition: During the testing of sales tax collections remitted to the Sales Tax Agency, it was noted that the Sales
Tax Agency is not documentmg the date sales tax retums are received. Therefore, the auditor was unable to
determine if the funds collected were deposited in a tunely manner.
Corrective action planned: The Sales Tax Department will implement procedures that will provide for date
stamping all retums received on the actual date they are received by the tax office. Written procedures associated
with this requirement will be prepared and included in our current office's practices and procedures.
Person responsible for corrective action plan:
Karl Bruchhaus, Chief Financial Officer
3310 Broad Street
Lake Charles, LA 70615
Phone: 337-217-4000
Fax: 337-217-4011
Anticipated completion date: Febmary 1,2011.
12