loX^%
Calcasieu Parish Tax Agency Fund
Of the Calcasieu Parish School.Board
Lake Charles, Louisiana
Finandal Statenients
As of and for the Year Ended June 30,2011
Under provisions of state law, this report is a public
document. Acopy of the report has been submitted to
the entity and other appropriate public officials.The
report is available for public inspection at the Baton
Rouge office ofthe LegislativeAuditor and, where
appropriate, at the office of the parish clerk of court.
Release Date J A N 2 5 2 0 1 2
Calcasten Parish Tax ^ e n c y Fund
Of the Cakasieu Parish School Board
Table of Contents
Page
INDEPENDENT AUDTTORS'REPORT
1-2
FINANCL\L STATEMENT
Statement of Fiduciary Assets and Liabilities
Notes to tbe Fmancial Statements
Index
J
Notes
4
5-7
OTHER REPORT REOUIRED BY GOVERNMENT AUDITING 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 Auditine Standards
8-9
OTHER INFORMATION
Summary Schedule of Prior Year Audit Findmg
10
II
3
ALLEN, GREEN & WILLIAMSON, LLP
CERTIFIED PUBLIC A C C O U N T A I ^ S
Tim Green, CPA
Mai^ie Williamson, CPA
Amy Tynes, CPA
P . O . Box6075
Monroe, I A 71211-6075
2441 Tower Drive
Telephone: (318) 386-4422
Fax: (318);
Monroe, LA 71201
The Cto.
,„
Never URGlerestinate Tte vMue;
Toll-free: (888)741^205
www.allengreencpa.com
Aimos Bndiai^n, CPA
Radiel Davis, CPA
JttineEssw«in,CPA
Diane Fersdiofr, CPA
Jo^ua Legg, CPA
Brian McBride, Q'A
Jaunicia Mercer. CPA
Cindy Thomason, CPA
BmcstL AUen, CPA
(Retiml) 1K3-20DO
INDEPENDENT AUDTTORS' REPORT
Board Members
Calcasieu Parish Tax Agency Fund
ofthe Calcasieu Parish School Board
Lake Charles, Louisiana
We have audited the accompanyingfinancialstatement ofthe Calcasieu Parish Tax Agency Fund ofthe Calcasieu
Parish School Board as of June 30, 2011, as listed in the table of contents. This fmancial statement is the
responsibility ofthe Calcasieu Parish Tax Agency's management. Our responsibility is to express an opinion on this
financial statement based on our audit.
We conducted our audh in accordance with auditing standards generally accepted in the United States of America and
the standards applicable tofinancialaudits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform tiie audit to obtain reasonable
assurance about whether thefinancialstatements 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 Tax Agency's mtemal
control overfinancialreporting. Accordingly, we express no such opinion. An audit also includes examinmg, on a
test basis, evidence supporting the amounts and disclosures in the fmancial statements, assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overallfinancialstatement
presentation. We believe tiiat our audit provides a reasonable basis for our opinion.
As discussed in Note 1, the financial statement ofthe Calcasieu Parish Tax Agency Fund ofthe Calcasieu Parish
School Board is intended to present thefinancialposition that is attributable to the transactions ofthe Calcasieu Parfeh
Tax Agency Fund. They do not purport to, and do not, present fairly thefinancialposition ofthe Calcasieu Parish
School Board, as of June 30,2011, in conformity wfth generaUy accepted accounting principles in the United States
of America.
1
Member: American Instittile of CeniHed Public Accountants, Society of Louisiana Certified Pvblic Accountants,
American IiKtitute of Certified PubUc Acooumaftts Division fbr CPA Firms,
En^loyee Benefit Audit Quality Center, and the Govenunent Audit Quality Center
Equal Oi^XHtunity Employer
In our opmion, thefinancialstatement referred to previously presents M-ly, in all material respects,tiierespective
financial position ofthe Calcasieu Parish Tax Agency Fund ofthe Calcasieu Parish School Board, as of June 30,
2011, in confomiity with accounting principles generally accepted in the United States of America.
The Calcasieu Parish Tax Agency Fund has not presented the Managemenfs Discussion and Analysistiiataccounting
principles generally accepted intiieUnited States ofAmerica has determined is necessary to supplement, altiiough not
required to be part of, tiie basicfinancialstatements.
In accordance whh Goveniment Auditmg Standards, we have also issued oiir report dated December 23,201 honour
consideration oftiie C^casieu Parish Tax Agency Fund's mtemal control over fmancial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The
purpose of that report is to describe tiie scope of our testing of intemal control over financial reporting and
compliance and the results ofthat testing, and not to provide an opinion ofthe intemal control over financial reporting
or on compliance. That report is an integral part of an audit performed m accordance with Govemment Auditing
Standards and should be considered in assessing the results of our audit
The information identified m the table of contents as other infomiation has not been subjected to the auditing
procedures ^)plied in the audit ofthe financial statement and, accordingly, we express no opinion on it
O J J U ^ , )^^JUi^^ ^ U^.>JXsUX^jr^^
ALLEN, GREEN & WILLIAMSON, LLP
Monroe, Louisiana
December 23,2011
Calcasieu Parish Tax Agency Fund
Of the Calcfuieu Parish School Board
Statement of Fiduciary Assets and Liabilities
June 30,2011
ASSETS
Cash
Accounts receivable sales tax vendors, net
Cash restricted
Total Assets
$
115.982
23,806.842
6,018.455
29.941,279
LL\BILrriES
Deposits due others
Taxes paid under protested from restricted assets
Total Liabilities
The notes tottiefinancialstatements are ah integral part of tills statement,
3
23,922.824
6,018.455
$29,941.279
Calcasieu Parish Tax Agency Fund
Of the Calcasieu Parish School Board
Notes to the Finandal Statements
June 30,2011
INDEX
Page
NOTC 1 - SUMMARY OF SIGNIHCANT ACCOUNTING POUCIES
5
A.
REPORTING ENTITY
5
B.
FUND ACCOUNTS,...
C
BASIS OF ACCOUNTING
5
D.
USE OF ESTIMATES
5
«..
5
NOTE 2-DEPOSITS
6
NOTE 3-DEPOSITS DUE OTHERS
6
NOTE 4-ACCOUNTS RECEIVABLE....
7
NOTE 5 - COMMITMENTS AND CONTINGENCIES
7
NOTE 6 - TAXES PAID UNDER PROTEST
7
Calcasieu Parish Tax Agency Fund
Ofthe Calcasieu Parish School Board
Notes to the Financial Statements
June 30,2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Calcasieu Parish Tax Agency Fund
has been formed under joint agreement ofthe Calcasieu Parish School Board, the Calcasieu Parisb Police Jury, the
City of Lake Charles,tiieCity of Sulphur,tiieTown of Iowa,tiieTown of DeQuincy, the Towa of Vmton,tiieTown
of West Lake, Law Enforcement #1, andtiieSouthwest Tourist Bureau for the collection of sales, use taxes and other
fees, m accordance with Louisiana Revised Statutes 33:2844. The Calcasieu Parish Tax Agency charges the Law
Enforcement # 1 district a collectionfeeof 0.25% yet not to exceed 1.0% of totai collections to cover operatmg costs
ofthe Calcasieu Parish Tax Agency Fund of the Calcasieu Parish School Board The Southwest Tourist Bureau is
charged a collection fee based on a proportionate share ofthe operatmg cost ofthe Calcasieu Parish Sales Tax
Agency. This collection fee amount varies each month based on the level of operating e7q>enses during that montii.
The Calcasieu Parish Tax Agency chaiges the remaining joint govemmentai entities a collection fee of 1 % of total
collections to cover operating costs for Calcasieu Parish Tax Agency Fund ofthe Calcasieu Parish Sdiool Board. The
mmunum amount that shall be paid each year by the Town ofIowa,tiieTown of Dequincy, andtiieTown ofVinton
is $1,000.
A. REPORTING ENTITY For financial reporting purposes, m confonnance whh GASB Statement No. 14, tiie
Calcasieu Parish Tax Agency Fund is an agency fiind of the Calcasieu Parish School Board. Accordingly, tiie
accompanyingfinancialstatement presents only the accounts ofthe tax agency fund and is not intended to present
fahlytiiefinancial position ofthe Calcasieu Parish School Board in conformity witii accounting principles generally
accepted m the United States of America. The Calcasieu Parish Tax Agency Fund is mcluded as part oftiie fhiancial
statements oftiie Calcasieu Parish School Board.
B. FUND ACCOUNTS A fund is a separate accounting entity witii a self-balancmg set ofaccounts that comprises
its assets, liabilities,fimdequity, revenues, and expenditures.
'
Funds are classified into one category, fiduciaiy. The category, in turn, is divided into separate "fund types."
Fiduciaiyfimdsare used to account for assets held for others. The tax agency fund requires the use ofa fiduciary
fimd as described below:
Fiduciary Fund - The Calcasieu Parish Tax Agency Fund is used to account fortiiecollection and distribution
of sales and use taxes imposed by fhe various taxing authorities within the parish and also occupancy taxes tiiat
are levied on hotel rooms, mcluding ovemigjit campingfecilities.The ^ency fund is custodial in nature (assets
equal liabilities) and does not mvolve measurement of results of operations.
C. BASIS OF ACCOUNTING The basis of accounting for an agency fimd is tiie accrual basis. The
measurement focus is custodial, since thefiindis not involved with the perfomiance of govemmentai services. An
agency fund has no revenues or expenditures and thereforetiiereis no fimd balance or need to measure the results of
operations for a period.
D. USE OF ESTIMATES The preparation of financial statements in conformity witii generally accepted
accounting principles requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contmgent assets and liabiiities attiiedate ofthe fmancial statement and tiie
reported amounts of revenues and expenses during tiie reporting period. Actual results could differ fiom tiiose
estimates.
Calcasieu Parish Tax Agency Fund
Ofthe Calcasieu Parish Scbool Board
Notes to the Financial Statemenis
June 30,2011
NOTE 2 - DEPOSITS At June 30,2011, the Tax Agency has cash and cash equivalents (book balances) totalmg
$6,134,437. Included hitiiisamount $6,018,455 is restricted assets.
Deposits are stated at cost, which approximates Mr value. Under state law, these deposits (or the resulting bank
balances) must be secured by federal deposit msurance or the pledge of securities owned by the fiscal agent bank.
The &ir value oftiie pledged securities plus tiie federal deposit msurance must at all times equal tiie amount on
deposit witii thefiscalagent These securities are held m the name oftiie pledging fiscal agent bank m a holding or
custodial bank that is mutually acceptable to both parties.
Custodial Credh Risk - Deposits: The hank balance was $6,149,33 3. Intiiecase ofdepositstiiisistiierisk that m tiie
event ofa bankfeilure,the Tax Agency fund deposits may not be retumed to it. The bank balance was eith^ covered
byfederaldepositoty insurance or pledged securities held by the Tax Agency's agent but not in the Tax Agency's
name. Eventiioughthe pledge securities are considered uncollateralized under the provisions ofGASB Statement 3,
Louisiana Revised Statue 39:1229 imposed a statutory requirement on tiie custodial bank to advertise and sell the
pledged securities witiiin 10 days of bemg notified by the Tax Agency fhe fiscal agent has failed to pay deposited
fimds upon request.
As afiduciaiyfund oftiie Calcasieu Parish School Board, the Tax Agency follows the School Board's policies. The
School Board's policy addresses custodial risk by requiring fiinds on deposit to be collateralized by pledged
"approved securities" as specified by State Statute to adequately protect the fimds of fhe School Board.
NOTE 3 - DEPOSITS DUE OTHERS A summaiy of changes m deposits due otiiers fortiieyear ended June 30,
2011, is as follows:
BALANCE, Bt^ming
$ 18,766,649
ADDITIONS:
Sales tax collections
212,646373
DEDUCTIONS:
Taxes distributed to otiiers:
Calcasieu Parish School Board
Calcasieu Parish Police Jury
City of Lake Charles
City of Sulphur
Town of Iowa
Town of DeQuincy
Town of Vinton
Town of Westiake
Uw EnforcemMt District #1
Soutiiwest Tourist Bureau
Transfer to School Board- Hotel-Motel CoUection Fee
Total deductions
82,703,886
30.799.637
42,751.774
12,520.805
1.283.525
U91,397
814,002
2.030.100
30,184.962
3.086,059
24.051
207,490,198
BALANCE, Ending
$ 23,922,824
Calcasieu Parish Tax Agency Fund
Ofthe Calcasieu Parish School Board
Notes to the Financial Statements
June 30,2011
NOTE 4 - ACCOUNTS RECEIVABLE ITie balance m accounts receivable ($23,806,842) represents sales tax and
occupancy tax collections in July, 2011 for June sales and the total of delinquent accoimts at year end, which is net of
allowance for doubtful accounts of $1,616,577.
NOTE 5 - COMMITMENTS AND CONTINGENCIES At June 30.2011,tiieCalcasieu Parish Tax Agency was
involved hi multiple litigations. The lawsuits are in regard to taxes paid under protest by various vendors. Th«B are
cunentiy six pending cases wheretiievendor 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 tiie Tax Agency loses, thentixetaxes paid under protest plus statutory interest will be refunded totiievendor.
NOTE 6 - TAXES PAH) UNDER PROTEST There is cunentiy $6,018,455 in Taxes Paid Under Protest There
were two vendors whose sales tax pmd under protest totalmg $1,828,305 was released during the 2010-2011 year.
The current balance is attributable to various 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.
ALLEN, GREEN & WILLIAMSON, LLP
CERTIFIED PUBLIC ACCOUI^ANTS
Tim Green, CPA
Mar^e WiUiamson, CPA
Amyl^iiBS.CPA
P.O. Box6075
Monroe. LA 7 1 2 1 1 - 6 0 7 5
2441 Tower Drive
Telephone: (318) 388-4422
Monroe. LA 71201
The CPA.
-.
Fax: (318) 388-4684
TotMree: (888)741-0205
Hever Utuierestimatente valuer
www.allengreencpa.com
Aimee Bachanan, CPA
Rachel Davis, CPA
iaime Essweio. CPA
Diane Feisdiofl^ CPA
iQshua Legg, CPA
&ianMcBnde,CPA
JauDtcia Mercer, CPA
Dndy Tliomasai, CPA
B«ftLAIka,CPA
0U(ind) 1963-2000
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 Standard?
Board Members
Calcasieu Parish Tax Agency Fund
ofthe Calcasieu Parish School Board
Lake Charles, Louisiana
We have audited thefinancialstatement ofthe Calcasieu Parish Tax Agency Fund ofthe Calcasieu Parish School
Board as ofJune 30,2011, and have issued our report th^^on dated December 23,2011. We conducted our audit m
accordance with auditing standards genemlly accepted m the United States of America and the standards q)plicable to
financial audits contamed m Govemment Auditmg Standards, issued by the Comptroller General oftiie United States.
As discussed m Note 1 oftiie notes to the fhiancial statements, thefinancialstatement ofthe Calcasieu Parish Tax
Agency Fund is intended to present only tiie asse^ and liabilities oftiie Calcasieu Parish School Boatd that is
attributable to the transactions ofthe Calcasieu Parish Tax Agency Fund.
Intemal Control Over Financial Reportmg
Management oftiie Calcasieu Parish Tax Agency Fund oftiie Calcasieu Parish School Board is responsible for
establishmg and mamtainmg effective internal control overfinancialrq)orting. In planning and performmg our audit,
we considered the Calcasieu Parish Tax Agency Fund's intemal control over fmancial reporting as a basis for
designing our auditing procedures for the purpose of expressmg our opmion on thefinancialstatements, but not for
the purpose of expressmg an opmion on the effectiveness ofthe Calcasieu Parish Tax Agency Fund's mtemal control
over financial reportmg. Accordmgly, we do not express an opmion on the effectiveness oftiie Calcasieu Parish Tax
Agency Fund's internal control overfinancialreporting.
A deficiency m mtemal control exists when tiie design or operation of a control does not allow management or
employees, m the normal course of performing theh assigned fimctions, to prevent, or detect and correct
misstatements on a thnely basis. A material weakness is a deficiency, or combination of deficiencies, ui mtemal
control, such that there is a reasonable possibility that a material misstatement ofthe entity's fmancial statements will
not be prevented, or detected and corrected on a timely basis.
Our consideration of intemal control over financial reporting was for the limited puipose described m the firet
paragraph ofthis section and was not designed to identify all deficiencies m intemal control over fmancial reporting
tfiat mi^t be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in
intemal control overfinancialreporting that we consider to be material weaknesses, as defined above.
8
Member American lostitnte of Ceitified PubKc Aceouotants. SOCK^ {^Louisiana Ceitified PuMic Acconntaals,
American lost&ute of Ceitifie)] Publio Acoountants DivisionforCPA Finns,
Einpkiyee Beo^t Andit QuaUty Center, and Oie Govenmieot Andft Quality Center
E(tiial C^)p(s1ani^&[iI)]oyer
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Calcasieu Parish Tax Agency Fund ofthe Calcasieu
Parish School Board's fmancial statement isfi^eofmaterial misstatement, we performed tests of its compliance with
certam provisions of laws, regulations, contracts, and grant agreements, noncompliance witii which could have a
direct and material effect on the determination of financial statement amounts. However, providmg an opuiion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an
opmion. The results of our tests disclosed no mstances of noncompliance or other matters that are requu^ to be
reported under Govemment Auditing Standards.
This report is mtended solely for the information and use of the Board, management, otiiers witiiin the entity,
Calcasieu Parish Police Juiy,tiieCity of Lake Charles, the City of Sulphur,tiieTown of Iowa, Town of DeQumcy,
Town of Vinton, Town of West Lake, Law Enforcement District #1, and Southwest Tourist Bureau, and is not
mtended to be and should not be used by anyone otiiertiianthe specified parties. Although tiie mtended use of tiiis
letter may be lunited, under Louisiana Revised Statute 24:513 this letter is distributed bytiieOffice ofthe Louisiana
Legislative Auditor as a public document
Qjdj,^^ /iAJLft^ ^ \)3/JX)<f....y^,^,..f^
ALLEN, GREEN & WILLL\MSON, LLP
Monroe, Louisiana
December 23,2011
ixf
Calcasieu Parish Tax Agency Fund
OTHER INFORMATION
10
Calcasieu Parish Tax Agency Fund
Of the Calcasieu Parish School Board
Summary Schedule of Prior Year Audit Finding
For Year Ended June 30,2011
Reference # and title:
10-Fl
Intemal Control Over Sales Tax Collections
Condition: During the testing of sales tax collectionsremittedto the Sales Tax Agency, it was noted that the Sales
Tax Agency is not documenting the date sales tax retums are received. Therefore, the auditor was unable to
determine ifthe funds collected were deposited in a timely manner.
Corrective action taken: The Sales Tax Department implemented procedures that provides for date stamping all
returns received on the acmal date they are received by the tax office. Written procedures associated with this
requirement were prepared and included in our current office's practices and procedures.
11