North Louisiana Criminalistics Laboratoryapp.lla.state.la.us/PublicReports.nsf/76CA4232DAFC97B7862578E... · The North Louisiana Criminalistics Laboratory Commission's total net assets

fTOCX/'

North Louisiana Criirtnallatics Uboratory Cominteslon Shreveport, Louisiana

Rrunclal Statements Wi»i AudUofs Report

As of and For the Year Ended December 31,2010

Underprovisions of state (aw, 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 Legislative Auditor and, where appropnate, at the office of thq parish clerK of court.

Release Date

North Louisiana Crimlnalisttca Laboratory Commission Shreveport, Louisiana

Table of Contents

Independent Audttoia' Report 1 - 2

Required Supplementary Information

Managements Discussion and Analysis 3-8

Basic Rnandal Statemenls:

Govemment-Awide Financtal Statemente

Statement of Net Assets 9

Statement of Acfivities 10

Pund Financial Statements

Balance S h e ^ - Govemnwntal Fund 11

Statement of Revenues, Expenditures, and Clianges in Fund Balances - Govemnnental Fund 12

Reconciliation of the Statement of Revenues, &(penditurss, and Changes in Fund Balances ofGovemmental Fund to the Statement of Activities 13

Notes to the Financial Statement? 14 -22

Required Supplementary Infonnation Budgetary Comparison Schedute 23 Note to Required Supptenêntary informafion 24

Report o n In tern^ Control over Financial Reporting and on Complianocf and Ottier Matters Based on an Audit off Financial Statements Performed in Accordance With (SovammBntAutUting Standards 2 5 - 2 6

Schedules For Louisiana Legislative Auditor Summary Schedule of Prior Year Audit Findings 27 Corrective Action Plan For Current Year Audit Findings 28

COOK & MOREHART

Cer^^Pnt i l ieAcBOtta t ta^

1215 HAWN AVGNl(£ • SHREI^PORT, LOUISIANA TI107* TJO. JOIX. n 2 « > ' SHRCVEPOItT. LOUISIANA 7 1 » M 2 « I

nuVISU MmEMAXT.CTA TELEPROTtEOlOUJnHlS VAX Q18}223-SM1 A.eDIVABl>BAU.C»A V]CIUED.CAS9.C»A

MEMBEIt AKEUCAHINrrmjTE

EnjABTL.HEEK$.CPA CBRTmEOPUBLKACCOONTAKn

fiOOETVOFLOURlAHA GEftnUED n n U C ACCOtJNFANTS

lnc[eDandefit Auditors' Report

North Louisiana CriminaHs^cs Laboratory Commission Shreveport, Louisiana

We have audited the accompanying financial statements of the governmental activities and major fiind of (he North Louisiana Crfminailsecs Laboratory Commission (the 'Commission') as of and for the year ended December 31, 2010, which cdlectiveV comprise the North Louisiana Criminalistics Laboratory Commission's basic financial statements, as listed in the table of contents. These financtal statements are the respon^bility of the North Louisiana Criminalistics Laboratory Commission's managemenL Our responsibility \& to express opinions on these financial statements based on our audit

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standanjs applicable b finandai audits contained in Govemment Auditing Stande/tis, issued by the Comptroller General of the United States. Those standards require that we plan and perfomn the audit to obtain reasonabte assurance about whether the financtal statements are free of material misstatement An audit includes examining, on a test basis, evidence supporting ttie amounts and disclosures in the financial statements. An audit also indudes assessing fi\B accounting principles used and significant estimates made tiy management, as weil as evaluating the overall financial ststament presentation. We betieve that our audit provides a reasonable basis tor our opinions.

In our opinion, the financial statements referred to above present fairly, In ali material respects, the respective financial position of the govemmental activities and msjor fund of the Nortti Louisiana Criminalistics Laboratory Commission as of December 31, 2010, and the respective changes In financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Jn accordance with Govemment Auditing Standards, we have also issued a report dated June 28.2011 on our consideration of the North Louisiana Criminalistics Laboratory Commission's intemal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report Is to describe the scope of our testing of internal control over finandal reporting and compfiance and the results of that testing, and not to provide an opinion on the interna! oontrol aver financial reporting or on compliance. That report is an integral part of an audit perfomred in accordance with Government Auditing ^ndards and should be considered in assessing floe results of our audit

The management's discussion and analysis and budgetary comparison infomnation on pages 3 - B and 23 - 24 are not a required part of the basic Rnandal statements, but are supplementary information required by accounting principles generally accepted In the United States of America. We have applied certain limited procedures, which consisted prtndpaliy of inquires of management regarding the methods of measurement and presentation of the required supplementaiy infonnation. However, we did not audit ttte infonnation and express no opinion on It

Cook & Morehart Certified Pubte Accountants June 28.2011

NORTH LOUISIANA CRIMINALISTICS LABORATORY COMMISSION

MANAGEMENT'S DISCUSSION AND ANALYSIS

Our discussion and analysis of Nortli Louisiana Criminalistics Laboratory Comnussion*s financial perfonnance provides an overview of the North Louisiana Criminalistics Laboratory Commission's financial activities for the fiscal year ended December 31, 2010. Please read it in conjunction with the Commission's financial statements, which begin on page 9.

FINANCIAL HIGHLKGHTS

The North Louisiana Criminalistics Laboratory Commission's net assets decreased by ($136,185)01(5%).

The North Louisiana Criminalistics Laboratory Commission's total revenues were $3.616»717 in 2010 compared to $4,017,688 in 2009,

During the year ended December 31, 2010, the North Louisiana Criminalistics Laboratory Commission had total expenses, excluding depreciation of $3,538,373, compared to $3,339,684 in 2009.

USING THIS ANNUAL REPORT

This annual report consists of a series of iinancial statements. The Statement of Net Assets and the Statement of Activities (on pages 9 and 10) provide information about the activities of the North Louisiana Criminalistics Laboratory Commission as a whole and present a longer-term view ofthe Commission's finances. Fund financial statements start on page 1L For govemmientai activities, these statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the North Louisiana Criminalistics Laboratory Commission's operations in more detail than the government-wide statements by providing information about the North Louisiana Criminalistics Laboratory Commission's most significant fimds.

Reporting tbe North Lonisiana Criminalistics Laboratory Commission as a Whole

Our analysis of the North Louisiana Criminalistics Laboratory Commission as a whole begins on page 9. One ofthe most important questions asked about the North Louisiana Criminalistics Laboratory Commission's finances is "Is the North Louisiana Criminalistics Laboratory Commission as a whole better off or worse off as a result ofthe year's activities?" The Statement of Net Assets and the Statement of Activities report

informadon about the funds maintained by the North Louisiana Criminalistics Laboratory Commission as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. Accmal ofthe current year's revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report the North Louisiana Criminalistics Laboratory Commission's net asseis and changes in them. You can think of the North Louisiana Criminalistics Laboratory Commission's net assets ~ the difference between assets and liabilities - as one way to measure the North Louisiana Criminalistics Laboratory Commission's financial health, or financial position. Over time, increases or decreases in the North Louisiana Criminalistics Laboratory Commission's net assets are one indicator of whether its financial health is improving or deteriorating. You will need to consider other non-financial factors, however, to assess the overall health ofthe Commission.

In the Statement of Net Assets and the Statement of Activities, we record the funds maintained by the North Louisiana Criminalistics Laboratory Commission as govemmental activities:

Govemmental activities - all of the expenses paid fiom the funds maintained by the NcHth Louisiana Criminalistics Laboratoty Commission are reported here which consists primarily of personal services, materials and supplies, contractual and other services, and other program services. Grants and court fees finance most of these activities.

Reporting ihe Commission's Most Significant Funds

Our analysis of the major funds maintained by the North Louisiana Criminalistics Laboratory Commission begins on page 11. The fund financial statements begin on page 11 and 5noAdde detailed information about the most significant funds maintained by the North Louisiana Criminalistics Laboratory Commission^ not the North Louisiana Criminalistics Laboratory Commission as a whole. The North Louisiana Criminalistics Laboratory Commission's govemmental Junds use the following accounting approaches:

Govenmiental funds - All of the North Louisiana Criminalistics Laboratory Cortmiission's basic services are reported in govemmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These fimds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. Tbe goverrmienta] fimd statements provide a detailed short-term view of the North Louisiana Criminalistics Laboratory Commission's general govemment operations and the expenses paid fi^m those fimds. Governmental fund information helps you detennine whether diere are more or fewer fmanciai resources that can be spent in the near future to finance certmn North Louisiana Crimmalistics Laboratory Commission expenses. We describe the relationship (or differences) between govemmental activities (reported m the Statement of Net Assets and the Statement of

Activities) and governmental . <rt(is m a reconciUation at the bottom ofthe fund financial statements.

THE NORTH LOUISIANA CRIMINALISTICS LABORATORY COMMISSION ASAWHOLE

The North Louisiana Criminalistics Laboratory Commission's total net assets changed from a year ago, decreasing fix)m $3,004,728 to $2,868,543. Our analysis below will focus on key elements ofthe total govemmental fimds for the December 31. 2010 and 2009 years.

Table 1 NetAssets

Govemmental Activities 2010 2009

Current and other assets $ 1,249,651 $ 1.368,130 Capital assets 2.006.136 L704J03

Total assets 3^55.787 3.072.433

Current liabilities 347,424 22,969 Long-term liabilities 39.820 44.736

Total liabilities 387.244 67.705

Net assets: Investments in capital assets,

net of related debt U686,696 1,704,303 Restricted - 53,541 Unrestricted 1.181.847 1.246.884

Total net assets

Net assets ofthe North Louisiana Criminalistics Laboratory Commission's governmental activities decreased by ($136,185) or (5%). Unrestricted net assets, the part of net assets that can be used to finance North Louisiana Criminalistics Laboratory Commission expenses without constraints or other legal requirements, decreased from $1,246,884 at December 31,2009 to $1,181,847 atDecember 31.2010.

Table 2 Change in Net Assets

Revenues Program Revenues

Capital grants and contributions Operatii^ grants and contributions

General Revenues Court fees:

OisLrlct courts City courts Mayor courts

Bond fees Fees Act 432 Intergovemmental - state appropriation Interest income MisceUaneous revraues

Total revenues

Expenses Operations - criminalistics laboratory

Increases (decreases) in net assets

Governmental Activities 2010

$ 413,956 -

1,437,374 672,372 119,790 117,933 828,244

^

4.267 22,781

3.616.717

3.752,902

Sf I36 i^

2009

$ 653,280 17,675

1,342.490 682,824 145,564 151.201 810,310 200,000

5,317 9.027

4.017.688

3.527.408

, 490.280

Total revenues decreased ($400,971) or (10%) fiiom total revenues in the year ended December 31, 2009 of $4,017,688 to total revenues of $3,616,717 in the year ended December 31, 2010. The primary reason for the decrease is less funding received fix>m capital grants and state appropriations.

THE COMMISSION'S FUNDS

As the Comnnission completed the year, its governmental funds (as presented in the balance sheet on page 11) reported a combined fimd balance of $707,246, which is lower than last year's fund balance of $1,295,889. The primary reason for the decrease is less funding received firom capital grants and an increase in architect fees related to proposed construction of a new faciUty.

General Fund Budgetary Hlgbligbls

The Commission adopted a budget for its General Fund for the year ended December 31, 2010. There were no amendments to the budget during the year. The Commission's budgetary comparison is presented as required supplementary information and shown on page 24. Highlights for the year are as follows:

• Decreased revenues fiom capital and operating grants^

The Commission's General Fund balance of $707,246 reported on p ^ e 11 differs fium the General Fund's budgetary fimd balance of $801,931 reported in the budgetary cotnparison schedule on page 24. This is primarily due to the Commission budgeting on the cash basis of accounting.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

Al the end of December 31, 2010, the North Louisiana Criminalistics Laboratory Commission had invested $2,006,136 in capital assets, (see table 3 below)

Tables Capital Assets At Year End

(Net of Depreciation)

Ijmd $ Construction in progress Buildings Lab and office equipment Fumiture and fixtures Idle assets Vehicles __

Governmental Activities 2010

76,161 366.341 254,834 787,160

8,681 463.545 49.414

$ 2009

76,161 46,901

274,437 1,186.268

9.429 44,385 66.722

Total

This year's major additions included:

$ L704.3Q3

Construction in progress Lab and office equipment

Total

319,440 202.523

46.901 552.661

More detailed information about the capital assets are presented in Note 7 to the financial statements.

Debt Administration

Long-term liabilities ofthe Commission are summarized as follows;

Table 4 Long-derm Liabilities at Year End

Govenmiental Gov«mmeiitaI Activities Activities

2010 2009

Compensated absences

More detailed information about the long-term liabilities are presented in Note 6 to the financial statements.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS

The North Louisiana Crimuialistics Laboratory Commission's management considered many factors when setting a fiscal year December 31, 2011 budget. Amounts available for appropriation and expenditures are e;q>ected to be consistent with the 2010 budget.

The Comnussion anticipates receivmg Capital Outlay funding for use in the Planning Phase ofthe new North Louisiana Forensic Science Center.

CONTACTING THE COMMISSION'S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens and taxpayers vrith a general overview of the finances for those funds maintained by the North Louisiana Criminalistics Laboratory Commission and to show the North Louisiana Criminalistics Laboratory Commission's accountability for the money it receives. If you have questions about this report or need additional financial information, contact die Director of the North Louisiana Criminalistics Laboratory Commission at 1115 Brooks Street, Shreveport, Louisiana 71101.

North Louisiana Criminalistics Laboratory Commission Shreveport. Louisiana

Statement of Net Assets December 31,2010

ASSCTS

Cash Accounts receivable Prepaid expenses Capital assets (net)

Total assets

LIABILITIES

Accounts payable Accrued Uabilities Long-term llat>iltties:

Compensated absences Due within one year

Total liabilities

NETASSETS Investment in capital assets, net of related debt Unrestricted

Total net assete

Govemmental Activities

804,770 420,384 23,997

2.006.136

3,255.787

327,993 19,431

39,820

387.244

1,686.696 1.181.647

$ 2j68;543

The accompanying notes are an integral part of the financial statements.

9

North Louisiana Criminalistics Uboratory Comm^sion Shreveport Loulstana Statement of Activities

For the Year Ended D^»mber 31,2010

GOVERNMENTAL ACTtVITIES Expenses:

Operations - criminaiifittcs laboratory $ 3,752.902

Program revenues;

Capital grants and contributions

Net program expenses

413,956

(3.338.946)

General revenues:

Court fees: Oistrict courts City courts Mayor courts

Bond fees Fees Act 432 Interest income Miscellaneous

Total general revenues

Change in net assets

Net assets - beginning

Net assets - ending

1,437,374 672,372 119,790 117,933 828,244

4.267 22.781

3.202.761

(136.185)

3.004.728

$ 2.668.543


10

North Louisiana Criminalistics laboratory Commission Shreveport Louisiana

Balance Sheet Govemmental Fund December 31.2010

General Fund

Assets

Cash Accounts receivable

Total assets

Liabilities

Accounts payable Accnied fiablHttes Deferred revenue

Total liabilities

Fund balances

Unreserved

Total fund balances

Amounts reported for govemmental activities in the statement of activities are different t)ecause:

The nonallocation method of accounting for prepayments is used in the fund statements, since the prepayment does not provide expendable financial resources.

Long-term liabilities, including compensated absences, are not due and payable In the cunent period and therefore are not reported in the funds.

Capital assets used In governmental activities are not nnanciat resources and therefore are not reported in the funds.

Grant / contractual revenues not received within the period of availabitity are not recognized in the govemmental funds.

Net assets of govemmental activities

$ 804,770 420.884

$ 1.225.654

327.993 19.431

170.984

SI 8.408

707.246

707.246

23,997

(39,820)

2.006,136

170.984

$ 2.868.543


11

North Louisiana Criminalistics Laboratory Commission Shreveport, Louisiana

Statement of Revenues, Expenditures, and Changes in Fund Balances Govemmental Fund

Forthe Year Ended December 31,2010

Revenues Court fees:

District courts City courts Mayor courts

Intergovemmental ~ grant revenue Bond fees Fees Act 432 Interest income Mi&caltaneous

Total revenues

Expenditures Operations:

Auto expense Building m»ntsnance Accrediation expense Dues and subscriptions Freight Insurance - general Insurance - health Laboratory equipment maintenance Laboratory supplies Professional fees Office supplies Document examiner DNA Ottier services Retirement expense Salaries Payroll taxes Training Travel Utilities

Capital outlay Total experiditures

Excess of revenues over expenditures

Fund balance, beginning ofyear

Fund talance, end of year

General Fund

1,434.092 672,372 123,900 266,793 118.075 628,943

4.267 22.781

3.471.223

13.264 81,909

3,156 12.890 2.357

63.297 250.689

12.453 112.525

15.130 70,822 29,900

419,082 5,514

308.099 1,967.589

23.164 33.328 36,286 76,249

521.963 4.059.866

(588,643)

1,295,889

$ 707.246

The accompanying notes are an integral part of the finandal statements.

12

North Louisiana Criminafistlcs Laboratory Commission Shreveport, Louisiana

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Baianoes of Govemmental Fund to the Statement of Activities

For the Year Ended December 31,2010

Net change in fund balances - totai governmental fund $ (588,643)

Amounts reported for governmental acfivities in the statement of activities are different because:

The nonallocation method of accounting for prepayments is used In the fUnd statements, since the prepayment does not provide expendable finarvcial resources. 216

Some expenses reported in the statement of actfvib'es do not require the use or cunent finanda) resources and theieffore are not reprted as expenditures in the govemmental funds. 4,916

Grant / contractual revenues not received within the period of availability are not recpgnized in the govemmental funds. 145,493

Govemmental funds report capital outlays as expendftunss. However, In the statement of activities, the cost off those assete Is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays ($521,983) exceeded depreciation ($214,529) in the cunent period. 307,434

A loss on disposal of capital assets is reoonjed in the statement of actiwties, but is not recognized in the fund statements. (5,601)

Change in net assete of govemmental activities $ (136,165)

The accompanying notes are an integral part of the financial statemente.

13


Notes to Finandal Stetements December 31,2010

INTRODUCTION

The North Louisiana Criminalistics Laboratory Commission (the Commission) was created In accordance wltti Louisiana Revised Statues 40:2261-2266.3. for crime detection, prevention. Investâtion and other related activities In connection with criming investigations. The Laboratory Commission serves the Louisiana parishes of Avoyelies, Bienvitie, Bossier, Caddo, Caldwel!. Catahoula. Claiborne, Concordia, DeSoto, East Carmll, Frantdin, Grant. Jad^son, LaSalles, Lincoln, Madison. Morehouse, Natchitoches. Ouachita, Rapides. Red River, Richland, Sabine, Tensas. Union, Vernon. Webster, West CanoJI and Winn.

The membership of the Commission consists of the coroner, sheriff, and Commission attomey of the parish in which the Commission is domidled, which is Caddo Parish, to sen/e during their elective terms of office, together with one person from each of ti>e twenty-nine (29) parishes virtiich the Commission serves. Those persons are appointed by the respective goveming authorities of the parishes and serve for a period of two years or until a successor is appointed. The Commissioners serve without pay.

(1) Summary of Significant Accounting Policies

The North Louisiana Criminalistics Laboratory Cômmission's financial statemente are prepared in conformity with generally accepted acoountirig prindples (GAAP). The Governmental Accounting Standards Board (GASB) Is responsible for establishing (3AAP for state and tocal govemmente through ite pronouncemente (Statemente and Interpretations). The accompanying basic financial statemente have been prepared in confonnity virtth GASB Statement 34, Sasfc Fmanciai âtements - and Managements Discussion atid Analyst - for State and Local Governments, issued in June 1999. The more significant accounting poUdes established in GAAP and used by the North Louisiana Criminafistics Laboratory Commission are discussed below.

A. Reporting Entity

Louisiana Revised Statue 40:2265 states that the Commission is created as a foody poTitfc with the right to sue and be sued, acquire ar y and all property necessary for ite operations, to incur debt to accept gifts and donations, and to establish njles and regufations tor fhe condud of Ite affairs. For those reasons and due to the nature of ite operations covering twentyHfiine (29) parishes, the Commission ts considered a legally separate local public entity and it Is not considered a component unit of any parish or other local govemment

B. Basic Finandal Statemente - Govemment-Wlde Statemente

The North Louisiana Criminafistics laboratory Commission's basic finandal statemente indude both govemment-wide (reporiing the funds maintained by the North Louisiana Criminalistics Laboratory Commission as a whole) and fund finandal statentente (reporting the North Louisiana CriminaTistics Laboratory Commls^n's major funds). Both the government-wide and fund financial statemente cat^rize primary actês ss either govemmentel or tnj&iness type. The North Louisiana Cnminalistics Laboratory Commission's general fiind Is dassified as govemmental activjbea. The North Louisiana Crinninallstics Laboratory Commission does not have any business-type activities.

(Continued)

14


Notes to Financial Statemente December 31.2010

(Continued)

In the govemment-wide Statement of Net Assete, the govemmentel activities column is presented on a consolidated basis and is reported on a full accmal, economic resouroe basis, which recognizes alt long-tenn assete and receivables. The North Louisiana Criminafistics Laboratory Commission's net assete are reported in three parts - invested in capital assete, restricted, and unrestricted net assets.

The govemment-wide Statement of Activities reporte both the gross and net cost of each of the North Louisiana Criminalistics Laboratory Commission's functions. The functions are supported by general govemment revenues and program revenues consisting of operating and capital grante and contributions. The Stetement of Activittes reduces gross expenses (induding d^redation) by any related program revenues, which must be directly assodated wi^ the function. The net coste (by Unction) are covered tiy general revenues.

This govemment-wide focus is more on the sustainability of the North Louisiana Criminalistics Laboratory Commission as an entity and the dtange in the North Louisiana Criminalistics Laboratory Commissbn's net assete resulting from the current year's activities.

C. Basic Finandai Statemente - Fund Financial Statemente

The finandal transactions of the North t-ouislana Criminalistics Lalxiratory Commission are recorded in individual funds in the fund financial stetemente. Each fund is accounted for by providing a separate set of setf-balancing accounte that comprises fte assete, liabilities, reserves, fund equity, revenues and expenditures. The various funds are reported by generic classification within ttie financial stetemente.

The follcwing fund types are used by the North Louisiana Ciiminalisttcs Laboratory Commission:

Govemmentel Funds - ttte focus of ttie govemmental funds' measurement (in ttie fund statemente) is upon determinatbn of finandal position and changes In financial position (sources, uses, and balances of finandal resources) mther ttian vpon net income. The fblloviflng Is a description of the govemmental funds of ttie North Louisiana Criminalistics Laboratory Commission:

a. General funds are ttie general operating fUnds of the North Louteiana Criminalistics Lat}oratory Commission. They am used to account fbr ail finandal resources except those required to be accounted fbr in another fund.

The emphasis in fUnd finandal statemente is on tiie major funds in ttte govemmental category. GASB Stetement No. 34 sete forth minimum criteria (percentage of ttie assete, liabilities, revenues, or expendjtures/expenses of either fimd category or ttie govemmentel and enterprise combined) for the determination of major funds. The Commission's general fund was determined to be a major fund.

(Continued)

15


Notes to Rnandal Statemente December 31,2010

(Continued)

0. Basis of Accounting

Basis of accounting refisrs to ttie point at which revenues or expenditures are recognized in ttie accounte and r^xsrted In ttie financial statemente. It relates to ttie timing of ttie measuremente made regardless of the measurement focus applied.

1 Accrual:

The govemmenlal funds in the govemment-wide financial statemente are presented on ttie accrual basis of accounting. Revenues are recognized when eamed and expenses are recognized when Incuned.

The (Commission's primary revenue source consiste of fees assessed In accordance with Louisiana Revised Stetue 40:2264 on criminal cases prosecuted under state stetues, parish ordinances, or dty ordinances in any mayor's, city, or district court of the Stete of Louisiana sitting within a parish served by the Commission. The fees are assessed in accordance witti fee schedule as listed in Louisiana Revised Stetue 40:2264 and are $10 and $S0 per case depending on the type of offense. Rênue is recorded based upon the period collected by various courte. Interest income is recorded when eamed. Donations are recorded when received in cash, because ttiey are generally not measurable until actually received. Federal and stete grante are recorded when ttie Commission is entitied to ttie funds. Grant funds received but not yet expended are reconJed as resen/ed fund baianoes and restricted net assete until ttiose funds are utilized for intended purposes of ttie grants.

2. Modified Accrual:

The govemmentat funds foiandaf stetemente are presented on ttie modified accmal basis of accounting. Under modified accrual basis of accounting, revenues are recorded when susceptible to accrual: Le., botii measurable and aval]at>le. 'Available' means collectible wittiin the cunent period or wittiin 60 days after year end. Expenditures are generally recognized under tine modified accaial basis of accounting when tfie related liability is Incurred. The exception to this rule is ttiat principal and interest on general obr^tion long-temi debt if any, is recognized when due. Depreciation is not recognized in the govemmentel fund finanda/ statemente.

E. Budgete

The System Director and Executive Secretery prepare a proposed budget and do ttie following:

(1) Submit It to tt^s Board of CommisEionerB fbr approval. (2) Submit it to all goveming auttiorities of ttie parishes which ttie Commission sen/es In

onier to obtain at least a majority approval. (3) All budgetery appmpriatiors lapse at ttie end of each fiscal year. (4) The basis of accounting applied to budgâry date Is presented on ttie cash basis of

accounting.

(Continued)

16



(Continued)

F. Cash, Cash Equlvalente, and Investtnente

C ash indudes amounte In petty cash, interest-bearing demand deposits, and money maritet accounte. Cash equlvalente indude amounte in time deposite and those investmente witti original maturities of 90 days or less. Under state law. the Commission may depos'rt funds in demand deposite. interest-bearing demand deposite. or mon^ maricet accounte witti state banks organized under Louisiana law or any ottier state of tt^ United States, or under tiie laws of ttie United States.

Investtnente are limtted by Louisiana Revised Stetue (R.S.) 33:2955. ff tiie original maturities of Investtnente exceed 90 days, ttiey are dassified as investtnente; however, If ttie original maturities are 90 days or less, tt^ are dassified as cash equrvalente. Investmente are carried at cost, wtvch approximates markeL

G. Capital Assete

Capitel assete purchased or acquired vntti an original cost of $2,500 or more are reported at historical cost or estimated hi^rical cost Contributed assete are reported at fab maricet value as of ttie date received. Additions, improvemente, and ottier capitel outlays ttiat significantiy extend the useful life of an asset are capitalized. Other coste incurred for repairs and maintenance are expensed as incuned. The Federal (govemment has a reversionary interest in property purchased witti federal funds. Ite disposition as well as the ownership of any proceeds ttierefrom Is subject to federal regulations.

Depredation on an assete is provided on ttie sttaight-line basis over ttie following estimated useful rives:

Buildings 20 - 40 years Vehides 10-15 years Equipment 5-35 years Furniture / Fixtures 6 -35 years

R Compensated Absences

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

Employees of ttie Commission eam ffom 8 hours to 16 hours per month of sick leave each year and finom 6 hours to 14 hours per montti of vacation teave each year, depending on their lengths of service. Upon separation of employment unused vacation leave can be paid to ttie employee. Side leave will not be paid upon separation of service. Effective January 1, 1998, vacation leave unused in a given year in excess of 40 hours may not be carried fonvard. Accumulated unused vacation leave as of December 31, 1997 was allowed to be can-led fonward. Unused sick leave is allovi«d to accumutete. The cost of teave privileges, computed in accordance witti ttie above policy, is recognized as a cun^nHear expenditure witiiin ttie general fund when teave is actually teken.

(Continued)

17

North Louisiana Criminalistics Laboratory Commfssion Shreveport. Louisiana

Notes to Finandal Stetemente December 31,2010

(Continued)

\. Use of Estimates

Management uses estimates and assumptions in preparing finandal stetemente. Those estimates and assumptions affect ttie reported amounte of assete and liabilities, ttie disdosure of contingent assete and liabilities, and reported revenues and expenses. Aduaf resuite couM differ from ttiose estimates.

J. Prepaid Items

Certein paymente to vendors reflect coste appllcabte to future accounting periods and are recorded as prepaid item s in the govemment-wide finandal stetemente.

K. NetAssets

Net assete represent the difference t^tween assete and liabilities. Net assete invested In capitel assete consist of capitel assete. net of accumulated depreciatton, reduced by ttie outetending balance of any borrowing used for the acquisition, construction, or improvement of those assete. Net assete are reported as restricted when ttiere are limltetlons imposed on ttieir use etther Uirough constitutional provisions or enabling legislation adopted by ttie disttict or through extemal restrictions imposed by creditors, grantors, or lavkrs or regulations of other govemmente. The commission's policy is to first apply restiicted resources when an expense is incurred for purposes for which botti restricted and unrestilded net assete are available.

(2) New Accounting Standards

The GASB has Issued ttie following statement which will become efliBctive for fiscal year beginning January 1. 2011: GASB Statement No. 54, "Fund Balance Reporting and Government Fund Type £te/&iffibns.' The objective of tfiis Stetement te to enhance the usefulness of fund balance infomnation by providing clearer fund batence dassifications that can be more consistently applied and by darifying the existing govemmental fund type definitions, Tbe categories of fund batence presented in the Crime Lab's finandal statemente wilt change as a result of implementing ttiis Stetement

(3) Cash and Cas\\ Equivalents

At December 31.2010, tiie Commission had cash and cash equlvalente (book balances) foteiing $804,770 in Interest bearing demand deposit and savings accounte. These deposite are stated at cost, v^k:h appnDXimates maricet Under stete law. ttiese deposite (or ttie resulting bank balances) must be secured by federal deposit insurance or ttie pledge of securitres owned by ^ e fiscal agent bank. The market value of ttie pledged securities plus ttie federal deposit Insurance must at all ^mes equal ttie amount on deposit witii ttie fiscal agent Custodtel credit risk is ttie risk that in the event of a bank failure, ttie govemment's deposite may not be retumed to it As of December 31, 2010, $449,637 of ttie Commission's bank balances toteling $949,637 were exposed to custodial credit risk as uninsured and coiteteral hald by ttie pledging bank's ttust department not in the Distticfs name.

(Continued)

18


Notes to Financial Stetemente December 31,2010

(Ckmtinued)

Even ttiough ttie ptedged securities are consklered uncollateralized (Category 3) under ttie provisions of GASB Statement No. 3. Louisiana Revised Statute 39:1229 imposes a statutory requlFement on ttie custodial bank to advertise and sell ttie pledged securities wittiin 10 days of being notified by tiie Commission ttiat ttie fiscal agent has teiled to pay deposited hjnds upon demand.

(4) Recâbles

The fotiowing is a summary of receivables at December 31, 2010:

Court fees Bond fees Capital outiay Ottier

Tote!

$ 237.260 17.369

165.092 1.163

^ 420.884

(5) Risk Management

The Commisston purchases commerdal insurance to provide woricers compensation coverage and general (iabiiity and property insurance. There were no significant reductions in insurance covâge from ttie prioryear.

(6) Long-temi Debt

At December 31, 2010, employees of ttie Commission have accumulated and vested $56,412 of emptoyee leave benefite. whk^ was computed in accordance witti GASB Codification Section C60.

Activity for ttie year ended December 31.2010. was as follows:

Beginning PqISPCg Additions Reductions

y 13P.1ga y 154.7QS) Comp isated absences

Less amounte due wittiin period of availability

Totel ton -term liabilities, govemment-wide statements

Ending Batence

Amounts Due VWhin

One Year

( 16.5911

t 39.B2Q

(Continued)

19

North Loulaana Criminalistics Laboratory Commission Shreveport Louisiana

Notes to Finandal Statemente December 31,2010

(Continued)

(7) Capitet Assete

Capital asset activity for ttie year ended December 31.2010, was as foihiws:

Govemmentat Activities: Capital assete, not being

depredated: land Constmction in progress

Total capitel assete. not being depnsdated

Capital assete. being depredated Buiklings Lab and office equipment Idle assete FumltUFS and fixtures Vehides

Total capitel assete, being depredated at historical cost

Less accumulated depredation: Buiklings Lab and office equipment Idle a s s ^ Fumiture and fixtures Vehtotes

Tote accumulated depreciation

Total capital assete, being depredated, net

(3ovemmentei activities capitel assete, net

Balance at Jan. 1.2010

$ 76.161 46.901

123,062

960,532 2,763.613

162.601 40,796

146.761

4,074,303

(686,095) (1.577.345)

(118.216) (31.367) (80,039)

(2,493,0^)

1,581,241

$1,704,303

Transfers

$

(419,160) 419,160

$

Additions

$ 319.440

319,440

202,523

202.523

(19.603) (1B2.471)

(748) (11.707)

(214.629)

(12,006)

$ 307,434

Deletions

$

(42,366)

(42.368)

36.765 36,765

(5,601)

$ (5.601)

Balance at Dec. 1,2010

$ 76,161 366,341

442.502

960,532 2,546.976

581.761 40.796

104.395

4.234,460

(705.698) (1,759,816)

(118,216) (32,115) (54.981)

(2,670,826)

1,663,634

$2,006,136

Depreciation expense for ttie yearended December3l. 2010 was $214,529.

(Continued) 20


Notes to Ftnandal Stetemente December 31,2010

(Continued)

(8) Penskin Plan

Substentially. all employees of ttie Commission are members of ttie Parochial Employees Retirement System of Louisiana (System), a cost sharing, multipte-emptoyer defined benefit pension plan administered by a separate board of bustees. The System is composed of two distinct plans, Pten A and Plan B, with separate assete and benefit provisions. All emptoyees of the Commisston are members of Plan A.

Ail pemianent employees woricing at least 28 hours per week who are pakl wholly or in part from Commission funds are eligible to partidpate in Uie System. Under Plan A. employees who retire at or after age 60 witti at least 10 years of creditable service, at or after age 55 wttti at least 25 years of crediteble service, or at any age with at least 30 years of creditable servuê are entitied to a retirement benefit, payable montttly for life, equal to 3 percent of ttieir final-average salary for each year of crediteble service. However, for those employees who were members of tine supptementel plan only before January 1, 1980, Uie benefit is equal to one percent of flnal average salary plus $24 for each year of supptemental-plan-only service eamed before January 1.1980. Final-average salary is ttie empk>yee's average satery over the 36 consecutive or joined monttte mat produce the highest average. Emptoyees who terminate witti at least the amount of crediteble service steted above and do not withdraw th^r employee conblbutions may retire at the ages spedfied above and receive the benefits accrued to their date of termination. The System also provkdes death and disability benefite. Benefite are esteblished or amended by stete stetute.

The System issues an annual publtoty available finandal report ttiat Includes financial stetements and required supplementary information for tiie System. That report may be obteined by writing to the Parochial Emptoyees' Retirement System, Post Office Box 14619. Baton Rouge, Louisiana 70898-4619, or by calling (504) 928-1361.

Under Plan A, members are required by state stetute to contiibute 9.5 percent of ttieir annual covered satery and the Commisston is required to contribute at an actuarially determined rate. The rate for 2010 was 15,75 percent of annual covered payroll. Conttfbutions to the System also indude one-fourth of one percent (except Orieans and East Baton Rouge Parishes) of Uie taxes shown to be collectible by the tax rolls of each parish.

These tax dollars are divided k)etween Plan A and Plan B tiased proportionately on ttie salaries of the active memt}ers off each plan.

The conttibution requiremente of plan members and ttie Commission are esteblished and may be amended by Stete stefajte. As provided by Louisiana Revised Stetute 11:103, the employer contiibutions are determined by actuarial valuation and are subject to change each year based on ttie resuite of ttie valuation for ttie prior fiscal year. The Commisston's contributions to Oie System under Plan A forthe years ending December 31.2010, 2009, and 2008. were $308,099, $222,572. and $198,423, respectively, equal to ttie required contributions for each year.

(Continued)

21

North Louistena Criminalistics Laboratory Commission Shreveport, Louisiana


(Continued)

(9) Commitment

In March 2008. ttie Commission entered into a cooperative endeavor agreement witti ttie State of Louisiana for approximately $4,875,000 for ttie purpose of renovating, repiacing, and expanding ite existing facilities, and/or constructing new fadlities. The Commission has signed a contract in relation to ttiis project for appnncimately $1,615,000 for architectural services. Of ttiis amount, approximately $366,341 has been Incurred as of December 31,2010.

(10) Contingency

The Commission Is the defendant tn a tewsuit In the opinton of legal counsel for ttie Commission, the amount of any damages awarded cannot be reasonably estimated at this time.

(11) Subsequent Events

Subsequent evente have been evaluated ttirough June 28, 2011. the date the finandat stetemente were availabte to be issued.

22

North Louisiana Criminalistics Labofslory Commission Shreveport Louisiana

Required Supplementery Infomiation Sdiedule d Revenues. ExpencHtures. and Changes In Fund Batences-

Budget (Cash Baals) and Actual For ttie Year Ended December 31.2010

Revenues Court fees;

Dlsttid courts City courts Mayor courte

GiaiH revenue Bond fees Fees coUeded Act 432 Interest Income Mliscdianeous

Total revenues

Budgeted Amaunte Original & Final

$ 1.400.000 S 770.000 145.800 300.000 155,000 aoo.Doo

10,000 25,000

Actual

1,441,551 661,646 133,990 270.635 122.981 830.950

4.267 22.781

Variance witti Final Budget

Positive (Negative)

$ 41,551 (108.354) (12.210) (29,365) (32,019) 30,950 (6.733) (2.219)

Excess (deftoiency) of revenues over (undeO expenditures

Fund balance, beginning ofyear

Fund balance, end ofyear

3,605,800

Expenditures Operations:

Auto expense 15,000 Building m^ntenance 60,000 Dues and subscriptions 12,000 Freight 2.500 Grant expenses 300,000 Insurance - general 90.000 Insurance-heatih 250,000 t-eboratory equipment maintenance 25.000 Laboratory supplies 150,000 Legal end accounting 9,500 Accreditation expense 16.000 Office supplies 42.000 ONA supplies 425,000 Doojment examiner 27.600 Other senrices 1,000 Retirement expense 321.000 Salaries 2,043,500 Payroll taxes 25,000 Training 30,000 Travel 30,000 Utilities 82,600

Capital outlay 45.600 Totel expenditures ^ 4.003.100

3,488.401

See eocompanying notes to the required supplementery sciiedule.

23

13.265 81.909 12.890 2,357

258,996 63,297

250,889 12,453

110.987 15.130 3.156

70.821 322,069 29.900 5,514

308,099 1.962,217

23,163 3S.177 37.449 76.249 40.426

3.739.413

(251,012)

1.052.943

801.931 $

(117.399)

1,735 (21.909)

(890) 143

41,004 26.703

(889) 12.547 39,013 (5.630) 12.844

(28.821) 102.931

(2.300) (4,514) 12.901 81.283

1.837 (8,177) (7.440) 6,251 5.074

263.687

146.288

152,450

Nortti Louisiana Criminalistics Laboratory Commisston Shreveport, Louisiana

Note to Required Supptementary Information December 31,2010

The Commssion'8 budget is adopted on a cash basis for all fonds. Them were no amendment to the 2010 budget. Ttie budget comparison schedute induded in the accompanying finandal stetemente indudes ttie original and adopted budgete. The schedule below recondtes excess (defictency) of revenues and ottier sources over expenditures and ottier uses on ttie budget basis witti GAAP basis:

General Fund

Excess of revenues and ottier sources over expenditures and ottier uses (budget basis) $ (251.012)

Adjustmente: Revenue accniais-net (17,176) Expenditure accruals - net _ (320.453^

Excess of revenues and ottier sources over expenditures and other uses [GAAP basis)

24

COOK&MOIU;HART

Certified ntbUcAaxitifUmts

12IS HAWN AVKNUi: • SHMVBPfHtT. LOUISIANA 71107 • P.O. BOX t t m • SHREVKVOBT, LOUISIANA 71137-S14n

TRAVIS H. MOBEHART. OA lELKPHONE (31B) aM-5415 FAX (31«) » 2 . « 4 l A. EDWARD BAlU CPA VKKIED CASE, CPA

MEMBER. AMEXICANIKSrmnE

STUART L.IEEKS.CrA CERVIHEDfWUC AOCOUNTAlfrS

SOCIETY o r LDUtSlANA CERTITBD PUBLIC ACCOUNTANTS

Rwiort on Intemal Conttol Over Financial Reoortina and on ComDiianoe and Ottier Matters Based on an Audit of Finandal

Statements Performed In Accordance Witfi Government Auditina Standards

To ttie Members of ttie Boanj of Commisstoners North Louisiana Crmiinailstics

Labwsôry Commission

We have audited ttie finandal statements of the govemmental activities and maior fund of ttie Nortti Louisiana Criminalistics Laboratory Commission ss of and for ttie year ended December 31, 2010, which cdledlvely comprise the North Louisiana Criminalistics Laboratory Commission's basic financ»l statements, and have issued our report ttiereon dated June 28, 2011. We conducted our audit in accordance wrtti auditing standards generally accepted in ttie United States of America and tiie standards applicable to financial audits contained in Govemment AudSing Standards, issued by tiie Comptroller General of the United States.

Intemal Conttol Over Financial Reoortino

In planning and perfomiing our audit, vire considered the Nortti Ixiulsiana Criminalistics Laboratory Commission's Intemal conttol over finandal reporting as a basis tor designing our auditing procedures tor ttie purpose of expressing our opinions on ttie financial stetements, but not tor the purpose of expressing an opinion on ttie effediveness of the North Louisiana Criminalistics L^tnralory Commission's Internal conttol over finandal reporting. Accordingly, we do not express an opinion of the effectiveness of ttie North Louisiana Criminalistics Laboratory Commission's intemal over financial reporting.

A deticiency fn intemai contmi exists wrhen the design or operation of a contt-ol does not altow management or employees, in the normal course of perfonning their assigned functions, to prevent or detect and corred misstatemente on a timely basis. A material wealmess is a deficiency, or a combination of defidendes, in internal conttol such ttiat there is a reasonable possibility ttiat a material misstetement of the entity's finandal statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of imemal control over finandal reporting was for ttie limited purpose described in the first paragraph of ttiis section and was not designed to Identify all defidendes in Intemal contrd over financial reporting Uiat might be defidendes, significant deficiencies, or material wealtnesses. We did not identify any deficiencies in intemal contrd over finandal reporting ttiat we consider to be material vreaknesses, as defined above. However, we Identified a certain deficiency in Intemal conttol over financial reporting, described in the accompanying corrective action pten tor current year audit findings as item 2010-1 ttiat we consider to be a significant deficiency In Intemal control over financial reporting. A signfficant deficiency is a defidency. or a combination of defidendes, in Internal oontirol ttiat is less severe ttian a material weakness, yet important enough to merit attention by ttiose charged witti govemance.

25

Compliance and Ottier Matters

As part of obtaining reasonable assurance about whettier ttie North t-ouisiana Criminalistics L^>oratory Commisston's finandal statements are free of material misstetement, we performed teste of ite oompfianoe witti certain provisions of taws, regulations, contracte, and grant agreemente, noncomplianca writti which could have a dlred and material effect on ttie determination of financial statement amounts. However, providing an opinion on compliance witii those provistons was not an objective of our audit, and accordingly, we do not express such an opinion. The resutts of our teste disctosed no instences of noncompliance or ottier matters that are required to te reported under Government Auditing Standards.

North Ixniisiana Criminalistics Laboratory Commissian's response to the finding identified in our audit is described in ttie accompanying corrective action plan tor cunent year audit findings. We dki not audit North Louisiana Criminalistics Latioratory Commission's response and accordingly, we express no opinion on it

This report Is intended solely tor the intonnation and use of management and ottiers within the organization and is not intended to be and shoukJ not be used by anyone ottier than these secified parties.

Cook & Morehart Certified Public Accountente June 26,2011

26

North Louisiana Criminalistics Laboratory Shreveport, Louisiana

Summary Schedule of Prior Year Audit Findings Schedute For Louisiana Legistetive Auditor

December 31.2010

There was one signiftcant defictency for ttie prior year audit for ttie year ended December 31.2009. as described below:

2009-B1 Significant t)ericlency - Financial statement Preparation

Condition: Management Is responsibte tor establishing and malnteining intemal conbols, Including monitoring, and tor the fair presentetion In the finandal stetemente of financial position, resuite of operations, and cash flows, induding ttie notes to finandal statements, in conformity vritti U.S. generally accepted accounting prindples. As part of the aud'rf, management requested us to prepare a draft of your ftnancial stetements. induding ttie related notes to finandal statemente. This condition is intentional by management based upon ttie agency's financial comptexlty. atong witti ttie cost effectiveness of acquiring the ability to prepare financial stetemente In accordance witti generally accepted accounting prindples. Management reviewed, approved, and accepted responsibility fbr those ftnandal stetemente prior to ttieir issuance.

Recommendation: Whetiier or not it would be cost effective to cure a conttol deficiency is not a fector in applying Statement on Auditing Standards (SAS) 115's reporting requiremente. Because pmdent management requires that ttie potential benefit tram an intemal control must exceied ite cost, it may not be practical to conect all the defidehdes an auditor reporte under SAS 115. In Uiis case we do not believe that curing the significant defidency described above woukl be cost effective or practical and accordingly do not believe any corrective action is necessary.

Current Status: See repeat finding in current year audit

27

Nortti Louisiana Criminalistics Laboratory Shreveport, Louisiana

(^nective Actton Plan For Cunent Year Audit Findings Schedule For Louistena Legislative Auditor

December 31.2010

There is one significant defidency tor the cunrent year audit fbr ttie year ended December 31,2010. as described below:

2010-1 SIgnifieant Deficiency - Financial Statement Preparation

Conditkm: Management is responsible tor establishing and maintaining Intemal conttois. Induding monitoring, and tor ttie fair presentetion In tiie finandal stetemente of financial position, resuite of operations, and cash ftows, induding ttie notes to financial statemente, in contomnity witii U.S. generally accepted accounting principles. As pari of tfie audit, management requested us to prepare a draft of your finandal statemente, induding the reteted notes to finandal stetemente. This condition is intenttonal t}y management based upon me agency's financial complexity, atong witii Uie cost eftectiveness of acquiring the ability to prepare finandal statements in accordance with generally accepted accounting principles. Management reviewed, approved, and accepted responsibility for ttiose financial stetemente prior to their Issuance.

Recommenda^n: Whettier cr not it would be cost eftedive to cure a control deficiency is not a fador in applying Statement on Audifa'ng Stendanis (SAS) llS's reporting requiremente. Because pnjdent management requires that ttie potential benefit from an intemal conttol must exceed its cost, it may not be practical to coniect all the defidendes an auditor reports under SAS 115. In ttiis case we do not believe ttiat curing ttie stgntticant defidency described above would be cost effective or practical and accordingly do not believe any corrective action Is necessary.

Managements Response: We agree witti the recommendation.

28

North Louisiana Criminalistics Laboratoryapp.lla.state.la.us/PublicReports.nsf/76CA4232DAFC97B7862578E... · The North Louisiana Criminalistics Laboratory Commission's total net assets

Documents