vernon parish clerk of court -...

VERNON PARISH CLERK OF COURT Leesv i IIe, Lou i s i ana

Annual Financial Report As of and for the Year Ended June 30, 2014 With Supplemental Information Schedules (With Comparative Totals, June 30, 2013)

VERNON PARISH CLERK OE COURT Leesvi Ile, Louisiana

Annual Einancial Report: As of and Eor the Year Ended June 30, 2014 With Supplemental Information Schedules (With Comparative Totals, June 30, 2013)

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Statement REQUIRED SUPPLEMENTAL INEORMATION (PART I)

Management's Discussion and Analysis

FINANCIAL SECTION:

Independent Auditor's Report

Government-Wide Einancial Statements:

Statement of Net Position A Statement of Activities B

Fund Einancial Statements:

Balance Sheet - Governmental Funds C Reconci I iat ion of the Balance Sheet - Governmental

Fund to the Statement of Net Position D Statement of Revenues, Expenditures, and Changes in

Fund Balance - Governmental Funds E Reconci I iat ion of the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds to the Statement of Activities E

Fiduciary (Agency) Funds - Statement of Net Position G

Notes to the Einancial Statements

REQUIRED SUPPLEMENTAL INEORMATION (PART II):

Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund

Schedule of OPEB Funding Progress

REPORTS REQUIRED BY GOVERNMENT AUDITING STANDARDS:

Report on CompI iance and on Internal Control over Einancial Reporting Based on an Audit of Basic Einancial Statements Performed in Accordance with Government Auditing Standards

Management Letter

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REQUIRED SUPPLEMENTAL INFORMATION (PART I)

VERNON PARISH CLERK OF COURT Leesvi Ile, Louisiana

MANAGEMENTS' DISCUSSION AND ANALYSIS Eor the Year Ended June 30, 2014

ith Comparative Totals Eor the Year Ended June 30, 2013)

The discussion and analysis of the Vernon Parish Clerk of Court's financial performance prov i des an overv i ew ofthe financial act i v i t i es as of and for the yea r ended June 30, 2014, with comparative totals as of and for the year ended June 30, 2013. It should be read in conj unct i on w i th the bas i c f i nanc i a I statements and the accompany i ng notes to the f i nanc i a I statements.

FINANCIAL HIGHLIGHTS

The basic financial statements of the Vernon Parish Clerk of Court, as of and for the year ended June 30, 2014, provides the foI lowing insights into the financial position and the results of operations. Governmental Eund-General Fund reported a surplus of $290,630, a decrease of $201,842, from the prior year. Tota I spend i ng for a I I programs was $1,437,333, for the year. The decrease in revenues and the increase in expenditures is due to a general fluctuation in annual operations.

USING THIS ANNUAL REPORT

The clerk's basic financial statements consists of a series of financial statements that show i n format ion for the clerk as a who Ie, i ts funds, and i ts f i due i a ry respons i b i I i t i es. The Statement of Net Pos i t i on and the Statement of Act i v i t i es prov i de i nformat i on about the act i V i t i es of the clerk as a who Ie and present a Ionger-term v i ew of the clerk's fi nances. Eor the clerk's governmenta I act i v i t i es , these statements report how the clerk fi nances i ts serv i ces i n the short-term as we II as what rema ins for future spend i ng . Fund statements may also provide insights into the clerk's overa I I financial position. Fund financial statements also report the clerk's operations in more detai I that the government-wide f i nanc i a I statements by prov i d i ng i nformat i on about theclerk'sgeneral fund. The rema i n i ng statement, the Statement of Fiduciary Net Position, presents financial information about activities for which the clerk acts solely as an agent for the benefit of others.

The Statement of Net Pos i t i on and the Statement of Act i v i t i es are reported us i ng the accrua I basis of accounting, which is simi lar to the accounting used by most private-sector compan i es. All of the current year's revenues and expenses are reported regard I ess of when cash i s rece i ved and/or pa id. These statements present the governmenta I act i v i t i es ofthe clerk which comprises al I of the clerk's services.

These statements report the clerk's net position - the difference between assets and I i ab i I i t i es , as reported i n the Statement of Net Pos i t i on - as a way to measure the c I erk ' s financial pos i t i on. Increases or decreases in the clerk's net pos i t i on, as reported in the Statement of Activities, are an indicator of whether the clerk's financial position is improving or deteriorating. The difference between revenues and expenses presents the clerk's operating results; however, the clerk's objective is to provide services to the res i dents of the parish and the public in general, and not to generate prof i ts as a commercial enterprise.

The fund financial statements provide detai I information about the general fund of the clerk, but not the clerk as a whole. The general fund is required to be estabi ished by State law to enable the clerk to control and manage financial resources for particular purposes or to demonstrate that the clerk is meet i ng I ega I requ i rements for the expend i ture of revenues.

See Independent Auditor's Report.

Vernon Parish Clerk of Court Leesvi Ile, Louisiana Management's Discussion and Analysis (Continued)

The clerk's servi ces are reported i n governmentaI funds wh i ch focus on show i ng how f i nanc i a I resources flow into and out of funds and the balances remaining at year-end that may be avai lable for future spending, using the modified accrual basis of accounting, which measu res cash and other financial assets that may be read i I y converted to cash. Th i s bas i s of account i ng prov i des a deta i I ed short-term v i ew of the clerk's operat ions and the servi ces it provides. The governmental fund information enables financial statement users to determ i ne whether there are more or fewer f i nanc i a I resources that can be spent in the near future to finance the clerk's programs. The relationship between governmental activities reported in the government-wide financial statements (Statement A and B) and the governmental funds in the fund financial statements (Statement C and E) is presented in a reconci I iat ion on Statements D and F.

FIDUCIARY RESPONSIBILITIES

The clerk is the trustee, or fiduciary, for the Advance Depos it Fund and the Reg istry of the Court Fund. Fiduciary activities are reported in a separate Statement of Fiduciary Net Position. These financial activities are excluded from the clerk's other financial statements because they cannot be used to f i nance i ts operat ions. Theclerk is respons i bIe for ensuring that the assets reported in these funds are used for their intended purposes.

GOVFRNMFNT-WIDF FINANCIAL STATEMENTS (GWFS)

As reported on the Statement of Net Position, (Statement A) the clerk's net position was a deficit of $819, 1 00, at June 30, 2014. This represents a net decrease of $563, 110, from the prior yea r. The $563,110 (deficit), in unassi gned net pos i t i on of governmenta I act i v i t i es represents the accumulated results of alI past year's operations. It means that if the clerk had to pay of f a I I of i ts bills (current liabiliti es) at June 30, 2014, an additional $563,110, to sat i sfy all outstand i ng debts of the Genera I Fund.

As reported in the Statement of Activities (Statement B) the results of this year's operations for the clerk reflected a decrease of $563,110. The decrease is mainly due to the recognition of GASB Statement 45 - Other PostempIoyment Benefits, which requires the clerk to recognize certain I iabi I ities related to retiree medical and I ife insurance benef i ts. The cIerk i ntends to cIoseIy mon i tor futu re expend i tu res with adherence to the approved budget to ensure financial stabi I ity.

FUND FINANCIAL STATEMENTS (FFS)

As reported on the Governmental Fund Balance Sheet (Statement C) the clerk reported total assets of $324,055, this is a decrease of approximately $195,899, from the prior year.

As reported on the Statement of Revenues, Expenditures, and Changes in Fund Balance (Statement F) , the tota I revenues decreased , w i th the decreased act i v i ty i n the o i I and gas industry, by $215,100, and expenditures increased, due to normal market activity, by $36,052, f rom the prior year.

BUDGETARY HIGHLIGHTS

Budgetary i n format i on is presented on Schedu I e 1 demonstrates the I eve I of budgetary contro I exercised by the clerk as we I I as compI lance with State law relating to budgets and the budgetary process.

CAPITAL ASSETS

The capital assets of the clerk of court is I imited to office furniture, equipment and automobi I es . Office space, as required by Louisiana law, is provided by the parish po I ice Jury. At June 30, 2014, capital assets are fuIly depreciated.


Vernon Parish Clerk of Court Leesvi Ile, Louisiana Management's Discussion and Analysis (Continued)

DEBT

The debt of the clerk is comprised of vested interest in leave benefits, $11,806, by empIoyees and the other postempIoyment benef i ts, $1,097,923, re I at i ng to empIoyee med i caI and life insurance benefits. At June 30, 2014, the debt totaled $1,109,730.

CONTACTING THE CLERK OF COURT

The financial report i s des i gned to prov ide a genera I overv i ew of the clerk's fi nances and to show accountab i I i ty for the financial resources rece i ved. Quest i ons about th i s report or requests foradditional financial i nformat i on shou I d be d i rected to the HonorableWi I I ie Deon, Jr., Vernon Parish Clerk of Cou rt, Post Off i ce Box 40, Leesv i I Ie, LA 71449 at phone number 337-238-1384.


HERBIE W. WAY CERTIFIED PUBLIC ACCOUNTANT

55 Terra Avenue Alexandria, LA 71303

318/442-7568 Fax: 318/449-9159

ndependent Auditor's Report

HONORABLE WILLIE DEON, JR. VERNON PARISH CLERK OE COURT Leesvi Ile, Louisiana

REPORT ON THE FINANCIAL STATEMENTS

I have aud i ted the accompany i ng f i nanc i a I statements of the governmentaI act i v i t i es, each ma J or fund, and the aggregate rema i n i ng fund i n format i on of the Vernon Parish Clerk of Court, Leesvi Ile, Louisiana, as of and for the year ended June 30, 2014, and the related notes to the financial statements, which col lectively comprise the basic financial statements, as I isted in the table of contents.

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management i s respons ibie for the preparation and fair presentat i on of these f i nanc i a I statements in accordance with accounting principles generally accepted in the United States of Amer i ca ; this i nc I udes the des i gn , i mp I ementat ion, and ma i ntenance of i nterna I contro I re Ievant to the preparation and fair presentat ion of financial statements that are free from material misstatement, whether due to fraud or error.

AUDITOR'S RESPONSIBILITY

My responsibi I ity is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with auditing standards general ly accepted in the United States of America and the standards appi icable to financial audits conta i ned in Gov e r nme nt Audi ting Standards, i ssued by the ComptroI Ier Genera I of the United States. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material m i sstatement.

An aud i t i nvoIves perform i ng procedures to obta in aud i t ev i dence about the amounts and disclosures in the financial statements. The procedures selected depend on the audi tor ' s J udgment, including the assessment of the risks of mater i a I mi sstatement of the financial statements, whether due to fraud or error. In making those risk assessments , the aud i tor cons i ders i nterna I contro I re I evant to the ent i ty 'spre pa ration and f a i r presentat ion of the financial statements in order to des i gn aud i t procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effect i veness of the enti ty's i nterna I contro I . Accord i ngIy, I express no such opinion. An audit also includes evaluating the appropriateness of the account i ng po I i c i es used and the reasonab I en ess of s i gn i f i cant account i ng est i mates made by management, as we I I as evaluating the overa I I presentation of the financial statements.

I be I ieve that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinions.

OPINIONS

In my opinion, the financial statements referred to above present fairly, in alI mater i a I respects, the respect i ve f i nanc i a I pos i t i on of the governmentaI act i v i t i es, each ma J or fund, and the agg negate rema i n i ng fund in format ion as of June 30, 2014, and the respect i ve changes in f i nanc i a I pos ition for the year then ended i n conform i ty w i th accounting principles generally accepted in the United States of America.

VERNON PARISH CLERK OE COURT Leesvi Ile, Louisiana Independent Auditor's Report (Cont i nued)

REPORT ON SUMMARIZED COMPARATIVE INEORMATION

I have previously audited the June 30, 2013, financial statements, and I expressed an unmodified audit opinion on those audited financial statements in my report dated December 20, 2013. In my opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2013, is consistent, in alI material respects, with the audited financial statements from which it has been derived.

OTHER MATTERS

Account i ng pr i nc i pIes general Iy accepted in the Un i ted States of Amer i ca requ i re that the suppIementary i nformat ion (Part I & II), as li sted in the forego i ng tab Ie of contents be presented to suppIement the bas i c f i nanc i a I statements. Such i nformat i on, a I though not a part of the bas i c f i nanc i a I statements , i s requ i red by the Governmenta I Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. I have appi ied certain I imited procedures to the required supplementary information in accordance with auditing standards general ly accepted i n the Un i ted States of Amer i ca, wh i ch cons i sted of i nqu i r i es of management about the methods ofpreparing i nformat i on and compar i ng the i nformat i on for cons i stency w i th management' s responses to my i nqu i r i es, the bas i c f i nanc i a I statements, and other knowledge I obtained during my audit of the basic financial statements. I do not express an opinion or provide any assurance on the information because the I imited procedures do not prov i de me with sufficient ev i dence to express and opinion or prov i de any assurance.

OTHER REPORTING REOUI RED BY GOVERNMENT AUDITING STANDARDS

In accordance with Government Auditing Standards , I have also issued my report dated December 26, 2014, on my cons iderationofthe i nternaI controI over financial report i ng and on my tests of its compI iance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of my testing of internal control over financial reporting and comp I i a nee and the resu I ts of that test i ng , and not to prov ide an opinion on i nterna I contro I over f i nanc i a I report i ng or on compI i anee. That report i s an i ntegra I part of an audit per formed i n accordance with Gov e r nme nt Audi t i ng St andar ds in cons ideringthe entity's internal control over financial reporting and compI iance.

Herbie W. Way Herb i e W. Way Alexandria, Louisiana December 26, 2014

VERNON PARISH CLERK OE COURT Leesv i IIe, Lou i s i ana

STATEMENT OE NET POSITION

June 30, 2014 (With Comparative Totals, June 30, 2013)

Statement A

ASSETS 2014 2013

Cash and cash equivalents Rece ivab1es

$310,095 13,960

$499,040 20,914

TOTAL ASSETS $324,055 $519,954

LIABILITIES

Current 1 i ab i 1 it i es: Accounts, salaries, and withholdings payable Compensated absences payable

Long-term 1iabi1 ities: Compensated absences payable Other post employment benefits payable

$33,425 11,806

1,097,923

$27,482 34,024

714,437

Tota1 L i ab i 1 it i es 1,143,155 775,944

NET POSITION

Invested in capital assets Unrestr i cted (819,100) (255,990)

TOTAL NET ASSETS ($819,100) ($255,990)

The accompanying notes are an integral part of these basic financial statements

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Statement of Activities Eor the Year Ended June 30, 2014 (With Comparative Totals Eor the Year Ended June 30, 2013)

Statement B

EXPENSES

Current - Judicial: Personal services and related benefits Operat i ng serv i ces Materials and supplies Travel and other charges IntergovernmentaI

2014 2013

$1,518,194 $1,498,466 169,176 125,153

43,467 29,281 18,341 43,028 49,424 46,769

TOTAL EXPENSES

PROGRAM REVENUES

Civi I suits and successions Criminal fees and charges E i I i ngs and record i ngs Court attendance Miscellaneous fees and charges

1,798,602 1,742,696

443,232 427,263 117,736 123,498 499,594 724,558 5,260 5,940

144,905 162,039

TOTAL PROGRAM REVENUES

NET (EXPENSE) REVENUE

GENERAL REVENUES

Eederal grants Interest earnings

TOTAL GENERAL REVENUES

CHANGES IN NET POSITION

NET POSITION - BEGINNING OE YEAR

NET POSITION - END OE YEAR

1,210,727 1,443,298

(587,875) (299,398)

17,000 7,764

24,764

7,292

7,292

(563,110) (292,105)

(255,990) 36,116

($819,100) ($255,990)



GOVERNMENTAL EUND Sheet, June 30, 2014 (With Comparative Totals, June 30, 2013)

Statement C

ASSETS 2014 2013

Cash and cash equivalents Rece ivab1es

$310,095 13,960

$499,040 20,914

TOTAL ASSETS $324,055 $519,954

LIABILITIES AND EUND BALANCE

L i ab i 1 i t i es: Accounts, salaries, and withholdings payable $33,425 $27,482

Eund balance - unassigned 290,630 492,472

TOTAL LIABILITIES AND EUND BALANCE $324,055 $519,954

The accompanying notes are an integral part of these basic financial statements.


Reconci I iat ion of the Governmental Eunds Balance Sheet to the Statement of Net Assets June 30, 2014 (With Comparative Totals, June 30, 2013

Statement D

2014 2013

Total Eund Balances - Governmental Eunds $290,630 $492,472

Cost of capital assets Less - accumulated depreciation

$295,574 (295,574) NONE NONE

Long-term 1iabi1 ities - compensated absences Other postemp1oyment benefits

(11,806) (1,097,923)

(34,024) (714,437)

Net Assets ($819,100) ($255,990)


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VERNON PARISH CLERK OE COURT Leesv i IIe, Lou i s i ana GOVERNMENTAL EUND

Statement of Revenues, Expenditures, and Changes in Eund Balances Eor the Year Ended June 30, 2014 (With Comparative Totals Eor the Year Ended June 30, 2013)

Statement E

REVENUES 2014 2013

Civi I suits and successions Criminal fees and charges E i I i ngs and record i ngs Court attendance Eederal grants Interest earnings Miscellaneous fees and charges

Total revenues

EXPENDITURES

Current - Judicial: Personal services and related benefits Operat i ng serv i ces Materials and supplies Travel and other charges IntergovernmentaI

TotaI expend itures

EXCESS OE REVENUES OVER EXPENDITURES

EUND BALANCE AT BEGINNING OE YEAR

EUND BALANCE AT END OE YEAR

$443,232 117,736 499,594

5,260 17,000

7,764 144,905

1 ,235,491

1 ,156,926 169,176

43,467 18,341 49,424

1 ,437,333

(201,842)

492,472

$290,630

$427,263 123,498 724,558

5,940

7,292 162,039

1,450,591

1,157,051 125,153

29,281 43,028 46,769

1,401,281

49,310

443,162

$492,472


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Statement F

VERNON PARISH CLERK OF COURT Leesv i I Ie, Lou i s i ana

Reconci Iiation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities

For the Year Ended June 30, 2014 (With Comparative Totals For the Year Ended June 30, 2013)

Total net change in fund balances - governmental funds

Amounts reported for governmental activities in the Statement of Activities are different because:

Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation expense exceeds capital outlay in the period

In the Statement of Activities, certain operating expenses are measured measured by the amounts incurred during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially, the amounts actuaI Iy pa i d) :

Compensated absences Other postempIoyment benefits

Change in net assets of governmental activities

201 4 2013

($201,842) $49,310

NONE NONE

22,218 42,071 (383,486) (383,486)

($563,110) ($292,105)


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VERNON PARISH CLERK OF COURT Leesvi Me, Louisiana FIDUCIARY FUND TYPE - AGENCY FUNDS

Combining Balance Sheet, June 30, 2014

Statement G

ADVANCE DEPOSIT

FUND

REGISTRY OF COURT

FUND OTHER FUNDS TOTAL

ASSETS Cash and cash equivalents $1 ,340,695 $426,677 $302,645 $2,070,017

L1AB1L1T1ES Unsettled deposits due to others $1 ,340,695 $426,677 $302,645 2,070,017

TOTAL LIABILITIES $1 ,340,695 $426,677 $302,645 $2,070,017


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VERNON PARISH CLERK OE COURT Leesvi Ile, Louisiana

Notes to the Einancial Statements As of and Eor the Year Ended June 30, 2014

NTRODUCTION

As provided by Article V, Section 28 of the Louisiana Constitution of 1974, the clerk of cou rt serves as the ex-of f i c i o nota ry public, the recorder of conveyances , mortgages and other acts, and sha I I have other duties and powers provided by law. The clerk of court is elected for a term of four years.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. BASIS OF PRESENTATION

The accompanying financial statements of the Vernon Parish Clerk of Court have been prepa red i n con form i ty with general ly accepted account i ng pr i nc i pIes (GAAP) as appi led to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for estabi ishing governmental account ing and financial report i ng pr i nc i pIes. The accompany ing basic financial statements has been prepared in conformity with GASB Statement No. 34, Basic Ft nanci al St at ement s — and Manage me nt 's Di s cus s ion and Anal ysis—for St at e and Loc al Governments , issued in June 1999.

B. REPORTING ENTITY

GASB Statement No . 14, The Rep or ting Ent i t y , estabI i shed cr i ter i a for determ i n i ng the governmental reporting entity and component units that should be included within the reporting entity. Under provisions of this Statement, the Vernon Parish Clerk of Court is considered a primary government, since it is a special purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. As used i n GASB Statement No . 14, f i sea My i ndependent means that the Vernon Par i sh Clerk of Court may, without the approval or consent of another governmental entity, determine or modify its own budget and set rates or charges. The Vernon Parish Clerk of Court also has no component un i ts, def i ned by GASB Statement No. 14 as other legal ly separate organizations for which the elected clerk of court are financial ly accountable. With the exception of the unrecorded transaction between the Vernon Parish Pol ice Jury and the clerk of court where the Vernon Parish Pol ice Jury provides, as required by Louisiana law, office space and uti I ities for the clerk of court, there are no other primary governments with which the clerk of court has a significant relationship.

C. FUND ACCOUNTING

The clerk of court uses funds to maintain its financial records during the year. Fund account i ng is des i gned to demonstrate Iega I compI i ance and to a i d management by segregating transactions related to certain functions and activities. A fund is defined as a separate fiscal and accounting entity with a self-balancing set of accounts.

GovernmentaI Funds

Governmental funds account for alI or most of the clerk's general activities. These funds focus on the sources, uses, and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may be used. Current I iabi I ities are assigned to the fund from which they will be paid. The difference between a governmental fund's assets and I iabi I ities is reported as fund balance. In general, the fund ba I ance represents the accumu I a ted expendab I e resources that may be used to finance future operations of the clerk of court. The clerk of court's current operat ions requ ire the use of only governmentaI and fiduciary funds. The governmenta I and f i due i ary fund types used by the c I erk are descr i bed as fo I I ows :

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VERNON PARISH CLERK OE COURT Leesvi Ile, Louisiana Notes to the Basic Einancial Statements (Cent i nued)

General Eund -- as provided by Louisiana Revised Statute 13:781, is the principal fund of the clerk of court and is used to account for the operations of the clerk's office. The various fees and charges due to the clerk's office are accounted for in this fund. General operating expenditures are paid from this fund.

Eiduciary (Agency) Eunds -- fiduciary funds reporting focuses on the net position and changes in net position. The only funds accounted for in this category by the clerk of court are agency funds. The agency funds account for assets held by the clerk as an agent for I itigants held pending court action. Agency funds are custodial in nature (assets equal I iabi I ities) and do not involve measurement of results of operations. The agency funds have no measurement focus, but use modified accrual basis of accounting. The Advance Depos i t and Reg i stry of Court agency funds account for assets he Id as an agent for others.

D. MEASUREMENT FOCUS/BASIS OF ACCOUNTING

Government-Wide Einancial Statements (GWES) - include the Statement of Net Position (Statement A) and the Statement of Activities (Statement B) . These financial statements report the financial pos i t i on and resuIts of operat ions for the clerk of court as a whole. Eiduciary funds are not i ncIuded at th i s I eve I , as they are only reported in the Statement of Eiduciary Net Position at the fund f i nanc i a I statement I eve I . The Government-W i de E i nanc i a I Statements were prepared using the economic resources measurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses, assets and I iabi I ities resulting from exchange or exchange-I ike transactions are recognized when the exchange occurs (regardless of when cash is received or disbursed). Revenues, expenses, ga i ns , I osses , assets and I iabi I iti es resu 11 i ng from nonexchange transact i ons are recognized in accordance with the requirements of GASB Statement No. 33, Acc ount i ng and Fi nanci al Rep or ting f or None x c hange Tr ans act i ons .

Program Revenues - Program revenues included in the Statement of Activities (Statement B) derive directly from users as a fee for services; program revenues reduce the cost of the function to be financed from the general revenues.

Al location of Indirect Expenses - The clerk of court reports al I direct expenses by function in the Statement of Activities (Statement B). Direct expenses are those that are clea riy identifiable with a funct ion. Ind i rect expenses of other functions are not allocated to those functions but are reported separately in the Statement of Activities. Depreciation expense, which can be specifically identified by function, is included in the direct expenses of each function. Depreciation which cannot be specifically identified by function is assigned to the "travel and other charges" function due to the fact that the assets serve multiple purposes.

Eund Einancial Statements (EES) - governmental funds are accounted for using a current financial resou rces measu rement focus. W i th th i s measu rement focus, only current assets and current I iabi I ities are generally included on the balance sheet. The statement of revenues, expenditures, and changes in fund balances reports on the sources (i.e., revenues and other financing sources) and uses (i.e., expend i tures and other f i nanc i ng uses) of current financial resources. Th i s approach d i ffers from the manner i n wh i ch the governmentaI act i v i t i es of the government-wide financial statements are prepared. Governmental fund financial statements therefore include a reconci I iation with brief explanations to better identify the relationship between the government-wide statements and the statements for governmental funds. Eund financial statements report detai led information about the clerk of court. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column.

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Governmental funds and the agency fund use the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recogn i zed when suscept i b I e to accrua I (i.e., when they become both measurab I e and ava i IabIe) . MeasurabIe means the amount of the transact i on can be determ i ned and avai lable means col IectibIe within the current period or soon enough thereafter to pay I iabi I ities of the current period. The clerk of court considers alI revenues ava i I ab I e if they are co I I ected w i th i n 60 days after the f i sea I year end . Expend i tures are recorded when the re I a ted fund I i ab i I i ty i s i ncurred , except for i nterest and principal payments ongeneral I ong-term debt wh i ch is recogn i zed when due, and certain compensated absences and claims and Judgments which are recognized when the obi igat ions are expected to be I iqui dated with expendable ava i lable financial resources . The governmenta I funds usethe fol I ow i ng pract i ces in recording revenues and expenditures:

Revenues

Recordings, cancellations, court attendance, criminal costs, et cetera, are recorded in the year in which they are earned.

Interest i ncome on t i me depos i ts i s recorded when the t i me depos i ts have matured and the income is avai lable.

Substantial ly al I other revenues are recognized when received by the clerk of cou rt.

Based on the above, recordings, court attendance, criminal costs, et cetera are subj ect to accruaI .

Expend i tu res

Expenditures are generally recognized under the modified accrual basis of accounting when the related fund I iabi I ity is incurred.

Deferred Revenues

The clerk of court reports deferred revenues on its fund financial statements baI anee sheet. Deferred revenues ar i se when resources are rece i ved by the clerk of court before a legal claim to them exists, as when grant monies are received before the i ncurrence ofqual ifying expend i tures. I n subsequent per i ods, when the clerk of court has a legal claim to the resources, the I iabi I ity for deferred revenue i s removed from the comb i ned baIance sheet and the revenue i s recogn i zed.

E. BUDGET PRACTICES

A proposed budget is publ ished in the official Journal at least ten days prior to a publ ic hearing. The publ ic hearing is held at the clerk's office during the month of June for comments from taxpayers. The proposed budget is then legal ly adopted by the clerk and amended during the year, as necessary. Budgets are estabi ished and control led by the clerk at the object level of expenditure. Appropr iations lapseat year-end and must be reappropr i a ted for the f o I I ow i ng year to be expended. Although formal budgetary integration is not employed as a management cent ro I dev i ce , the bookkeeper prov i des theclerkof cou rt with month I y compar i sons as a means of controI I i ng expend i tures. Budgeted amounts i ncIuded i n the accompany i ng f i nanc i a I statements i nc I ude the or i g i na I adopted budget amounts and a I I subsequent amendments.

15


E. ENCUMBRANCES

Encumbrance accounting, under which purchase orders are recorded in order to reserve that port ion of the appi i cable appropriation, is not empIoyed. However, outstand ing purchase orders are taken i nto cons i derat i on before expend i tures are incurred in order to assure that appI icable appropriations are not exceeded.

G. CASH AND CASH EQUIVALENTS

Cash includes amounts in demand deposit, interest bearing demand deposits, and money market accounts. Cash equivalents include amounts in time deposits and those i ncome-produc ing i tems with original matu r i t i es of usua I I y 90 days or I ess. Under state I aw, the clerk of court may depos it funds in demand depos i ts, i nterest bear i ng demand depos i ts, money market accounts, or t i me depos i ts w i th state banks organ i zed under Louisiana I aw and national banks having their principal offi ces in Louisiana. Under state law, the clerk of court may invest in United States bonds, treasury notes, or certificates. These are classified as investments if the i r or i g i na I matur i t i es exceed 90 days; however, i f the or i g i na I matur i t i es are 90 days or less, they are classified as cash equivalents.

H. INVESTMENTS

In accordance with Louisiana Revised Statute (LSA-R.S.) 32:2955, the clerk of cou rt, upon deter m ination of the ava i I ab i I i ty of funds in excess of i mmed i ate cash requirements, may invest in direct United States Treasury obI igations; bonds, debentures, notes, or other evidence of indebtedness guaranteed by federal agencies or United States government instrumental ities, provided that such ob I igations are backed by the f u I I faith and credit of the United States government; and savings accounts and certificates of deposit of state banks organized under the laws of Louisiana or national banks having their principal offices in the state of Louisiana. Additionally, the clerk of court may invest

i n mutua I or trust fund institutions (limi ted to 25 per cent of the funds considered avai lable for investment under this section) provided that they are registered with the Securities and Exchange Commission under the Securities Act of 1933 and the i n vestment Act of 1940 and have underlying i n vestments cons i st i ng solely of secur i t i es of the Un i ted States government or i ts agenc i es. Investments are stated at fair value.

I. INTERFUND RECEIVABLES/PAYABLES

During the course of operat i ons , numerous transact i ons occur between i nd i v i duaI funds for goods and services provided or rendered. These receivables and payables are classified as interfund receivables and payables on the fund financial statements but are el iminated for reporting purposes on the government-wide financial statements. Included in these transactions, are the fees that are transferred from the Advance Deposit Agency Fund. These fees represent fees earned by the clerk of court from cont i nu i ng operat ions and are transferred from

I itigant's money deposited in the Advance Deposit Agency Fund.

J. CAPITAL ASSETS

Capital assets are capital ized at historical cost. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The clerk of court ma i nta i ns a threshoId I eve I of $2,500 or more for cap i taI i z i ng capital assets for reporting purposes. Capital assets are recorded in the government-w ide financial statements, but are not reported in the fund financial statements. S i nee surpI us assets aresold for an i mmater i a I amount when dec I ared as no longer needed for publ ic purposes, no salvage value is taken into cons ideration for deprec i at i on purposes. All cap i taI assets are deprec i ated us i ng the stra i ght-I i ne method over the foI Iow i ng usefuI I i ves:

16


Estimated Useful

Descr i pt i on L i fe (Years)

Office equipment 5

Eurniture and fixtures 5

Automob i Ies 5

K. COMPENSATED ABSENCES

Emp I oyees earn from 5 to 25 days of vacat i on I eave each year , depend i ng on I ength of serv i ce. Vacat ion Ieave can only be accumuI ated with spec i f i c approvaI by the clerk of court. Employees earn one day of sick leave each month and may accumulate a maximum of 45 days. Employees, with proper notice given concerning retirement or resignation, are paid up to 45 days of accumulated sick leave at their current rate of pay . The cost of I eave pr i v i I eges , computed i n accordance with general ly accepted governmental accounting principles, is recognized as a current-year expenditure in the General Eund when leave is actual ly taken. The

I iabi I i ty related is reported on the Government-Wide Einancial Statements, with only the current portion of the I iabi I i ty reported in the Eund Einancial Statements.

L. FUND EQUITY

Effective for fiscal years ending June 30, 2013, the district implemented the requirements of GASB Statement No. 54, "Eund Balance Reporting and Governmental Eund Type Def initions." This statement prov i des more c I ea r I y def i ned fund ba I a nee categories to make the nature and extent of constraints placed on government's fund balance more transparent. The foI lowing classifications describe the relative strength of spending constraints:

Nonspendable Eund Balance - amounts that are not in spendable form; i .e., inventory, prepaid expenses, etc.

Restricted Eund Balance - amounts constrained to specific purposes by their prov i ders; i.e., grantors, bondhoIders, and higher I eve Is of government through constitutional provision or enabi ing legislation.

Committed Eund Balance - amounts constrained to specific purposes, by the clerk of cou rt, using i ts h i ghest I eve I of dec i s i on-mak ing authori ty. These fund ba I a noes can not be used for any other purpose un I ess the clerk of court takes the same highest level action to remove or modify the constraint.

Assigned Eund Balance - amounts the clerk of court intends to use for a specific purpose. Intent is expressed by the clerk of court.

Unassigned Eund Balance - amounts that are avallable for unrestricted expenditure. Positive amounts are reported only in the General Eund.

The clerk of court, estabi ishes fund balance commitments and assignments by passage of a resoIut i on, typ i caI Iy uses restr i cted fund baI anoes first, f o I I owed by committed, assigned, and unassigned fund balances when an expenditure is i ncurred for purposes for wh i ch amounts i n any of these cI ass i f i cat i ons couId be used .

17


M. EXTRAORDINARY AND SPECIAL ITEMS

Extraord i nary i tems are transact i ons or events that are both unusual innatureand infrequent in occurrence. Special items are transactions or events within the control of the clerk of court, which are either unusual in nature or infrequent

i n occu r rence.

N. USE OF ESTIMATES

The preparation of financial statements , i n conform i ty w i th account i ng pr i nc i pIes general Iy accepted in the Un i ted States of Amer i ca, requ i res management to make estimates and assumptions that affect the reported on the basic financial statements and the related note disclosure at the date of the financial statements. Actual results could differ from those estimates.

2. CASH AND CASH EQUIVALENTS

Under state I aw, the clerk may depos it fundswithina fi sea I agent bank organ i zed under the laws of the State of Louisiana, the laws of any other state in the union, or the laws of the United States. The clerk may invest in certificates and time deposits of state banks organ i zed under Louisiana I aw and national banks having principal offi ces

i n Lou i s i ana.

At June 30, 2014, the clerk has cash and cash equivalents as foI lows:

GOVFRNMFNTAI FUND - GFNFRAI FUND

Petty cash $250

Demand deposits 127,845

Time and certificates of deposit 1 82,000

Total Governmental Fund - General Fund 310,095

FIDUCIARY FUNDS - AGENCY FUNDS

Demand deposits

Time and certificates of deposit

Total Fiduciary Funds - Agency Funds

$444,371

1,625,646

2,070,017

Total Cash and Equivalents $2,380,112

These deposits are stated at cost, which approximates market. Under state law, these depos i ts, or the resu11 i ng bank baI anoes, must be secured by federaI depos i t i nsuranee or the pledge of securities owned by the fiscal agent bank. The market value of the p I edged secur i t i es p I us the federa I depos i t i nsu ranee must at a I I t i mes equa I the amount on deposit with the fiscal agent bank. These securities are held in the name of the pIedg i ng f i sea I agent bank in a holding or custod iai bank that is mutuaI Iy acceptab I e to both parties. At June 30, 2014, the clerk has cash and cash equivalents (col I ected balances) of $2,434,570, with $1,334,570 being considered uncollateral ized under generally accepted accounting principles.

Even though the pi edged secur i t i es are cons i dered unco I IateraI i zed, Lou i s i ana Rev i sed Statute 39:1229 i mposes a statutory requ i rement on the custod iaI bank and/or financial institution to advertise and seI I the pledged securities within 10 days of being not i f i ed by the c I erk that the f i sea I agent bank has fa i I ed to pay depos i ted funds upon demand.


3. CAPITAL ASSETS

Capital assets and depreciation activity for the year ended June 30, 2014, fo I lows:

Capital assets - June 30, 2013 $295,574

Less - accumulated depreciation (295,574)

Net Capital Assets - June 30, 2014 NONE

4. LONG-TERM DEBT

The f o I lowing is a summary of the changes in long-term debt for the year ended June 30, 2014:

Other PostempIoyment Compensated

Benefits Absences Total

Beg i nn i ng Ba1ance $714,437 $34,024 $748,461 Add i t i ons 418,934 62,721 481,655 Deduct i ons (35,448) (84,939) (120,387)

End ing Ba1ance $1 ,097,923 $11,806 $1,109,730

Current 1 iabi 1 ities $11,806 $11,806 Long-term 1 iabi 1 ities 1 ,097,923 1,097,923

Tota 1 1 ,097,923 11,806 1,109,730

5. PENSION PLAN

Substantial ly al I employees of the Vernon Parish clerk of court are members of the Louisiana Clerks of Court Ret i rement and Re I i ef Eund ( "System"), a mu11 i pIe-empI oyer, pub I i c empIoyee ret i rement system (PERS), contro I I ed and adm i n i stered by a separate board of trustees.

Al I regular employees who are under the age of 60 at the time of original employment are requ i red to pa rt i c i pate in the system. Emp I oyees who ret ire at or a fter age 55 with at least 12 years of credited service are entitled to a retirement benefit, payable monthly for I ife, equal to 3 percent of their finaI-average salary for each year of credited service, not to exceed 100 per cent of their finaI-average salary. Eina I-average sa I ary is the emp I oyee ' s average sa I ary over the 36 consecut i ve or J o i ned months that produce the highest average. Employees who terminate with at least 12 years of serv i ce, and who do not w i thd raw their empIoyee centr i but i ons, may ret ire at or a fter age 55 and receive the benefit accrued to their date of termination. The system also provides death and disabi I ity benefits. Benefits are estabi ished by state statute.

The System i ssues an annual publicly ava i lable financial report that i nc I udes financial statements and required supplementary information for the System. That report may be obta i ned by wr i t i ng to the Louisiana Clerks of Court Ret i rement and Re I ief Eund, 11745 Br i cksome Avenue, Su i te B1 , Baton Rouge, Louisiana 70816, or by ca I I ing (504) 293-1162.

19


6. OTHER POST EMPLOYMENT BENEEITS

Plan Description - the Vernon Parish Clerk of Court's defined benefit postempIoyment hea I thcare plan prov i des med i ca I , denta I , and I i fe i nsu ranee benef i ts to el i g i b I e ret i re employees and their beneficiaries. The plan is affi I iated with the Louisiana Clerks of Cou rt Insu ranee Trust, a mu11 i pIe-empI oyer postempIoyment hea11hea re adm i n i stered by the Louisiana Clerk of Court Association.

Eunding Pol icy - the contribution requirements of the plan members and the clerk are estab I i shed and may be amended by the board of trustees ofthe LouisianaClerks of Court Insurance Trust. The clerk contributes 50% of the cost of current year premiums for el igible retired plan members and 50% of the cost for retired members' spouses and dependent ch i Idren. Eor the year June 30, 2014, the clerk contributed $35,448 to the plan.

Annual and Net OPEB Obi igation - for 2014, the clerk's annual other postempIoyment benef it (OPEB) cost/expense i s caIcuI ated based on annual requ i red contr ibution ofthe empI oyer (ARC), an amount actua r i a I I y determ i ned i n accordance with the pa rameters of GASB Statement 45 . The ARC represents the I eve I of funding that, if pa id on an ongoing basis, is projected to cover normal costs each year and to amortize any unfunded actuarial I iabi I ities (or funding excess) over a period not to exceed thirty years. The f o I I ow i ng tab I e shows the components ofthe clerk's annual OPEB costs for the year , the amount actually contributed to the plan, and changes in the clerk's net OPEB obi igation to the health plan:

Normal costs (including interest) $352,194

Amortization of unfunded accrued I iabi I ity 66, 740

Annual OPEB expense 418,934

Contribution made (35 , 448)

Increase in NPOB expenses $383,486

Net OPEB obi igation at beginning of year 714,437

Net OPEB Obi igation at End of Year $1,097,923

Actuarially accrued I iabi I ity (AAL) $5,882,844

Actuarial value of plan assets NONE

Unfunded actuarially accrued I iabi I ity (UAAL) $5,882,844

Unfunded portion of UAAL 0.00%

Covered payrol I of plan participants $605,935

UAAL as a percentage of covered payrol I 881 .89%

20


Eunded Status and Eunding Progress - the projection of future benefits for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probab i I i ty of occurrence of events far i nto the future. ExampIes i ncIude assumpt i ons about future employment, mortal ity, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information foI lowing the notes to the financial statements, presents multi-trend information about whether the actuarial value of plan assets i s i ncreas i ng or decreas i ng over t i me re I at i ve to the actuar i a I accrued

I iabi I ities for benefits.

Methods and Assumpt i ons - proj ect i ons of benef i ts for financial report i ng purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that po i nt. The actuar i a I methods and assumpt i ons used i ncIude techn i ques that are des i gned to reduce the efforts of short-term vo I at i I i ty i n actuar i a I accrued I iabi I i t i es and actuarial value of assets, consistent with the long-term perspective of the ca I cuI at i ons.

In the June 30, 2009, actuar i a I va I uat i on , the entry age actuar i a I cost method was used . Based on the clerk's short-term investment portfol io, a discount rate of 2 percent was used. In addition, the actuarial assumptions included in the annual healthcare cost trend rate of 10% initial ly, reduced by decrements to an ultimate rate of 5.5 percent a fter 1 0 yea rs . The clerk's un funded actua r i a I I i ab i I i ty i s be i ng amort i zed as a I eve I percentage of projected payrolI on an open basis over 30 years.

7. RISK MANAGEMENT

The clerk's office is exposed to various risks related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.

The clerk has obtained commercial insurance for alI the aforementioned risks and settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

21


CHANGES IN AGENCY EUND BALANCES

A summary of changes in agency fund balances due to others fo11ows:

ADVANCE DEPOSIT

FUND

REGISTRY OF COURT

FUND OTHER FUNDS 2014

UNSETTLED DEPOSITS AT BEGINNING OF YEAR $1,227,674 $454,064 $296,851 $1,978,589

ADDITIONS

Suits and successions Court costs, fees and charges Interest earned on investments

869,791 8,624

61 ,011 959 72, 310

498

930,801 81,893

498

Tota1 add i t i ons 878,415 61 ,969 72,808 1 ,013,191

Tota 1 2,106,089 516,033 369,659 2,991,780

REDUCTIONS

Clerk's costs (transferred to Genera 1 Fund)

Settlements to 1 itigants and others Local sheriff's costs Other sheriff's and clerk's costs

443,232 238,012 61,640 22,510

89,356 40,821 24,000 2,193

484,053 351,368 63,833 22,510

Total reductions 765,394 89,356 67,014 921,763

UNSETTLED DEPOSITS AT END OF YEAR $1,340,695 $426,677 $302,645 $2,070,017

22

REQUIRED SUPPLEMENTAL INFORMATION (PART II)

SCHEDULE 1

VERNON PARISH CLERK OF COURT Leesv i I Ie, Lou i s i ana GENERAL FUND

Budgetary Comparison Schedule For the Year Ended June 30, 2014

VARIANCE ORIGINAL FINAL FAVORABLE BUDGET BUDGET ACTUAL (UNFAVORABLE)

REVENUES

CivlI suits and successions Cr i m i naI su i ts F i I i ng and record i ng General revenue

Total revenues

EXPENDITURES

Current: General government - Judicial :

Personal service and related benefits Operating servlces Materials and supplies Travel and other charges IntergovernmentaI

Cap ItaI out I ay

TotaI expend Itures

EXCESS (Deficiency) OF REVENUES OVER EXPENDITURES

FUND BALANCES AT BEGINNING OF YEAR

FUND BALANCES AT END OF YEAR

$450,684 129,892 741,795 189,887

$450,684 129,892 741,795 189,887

$443,232 117,736 499,594 174,929

1 ,512,258 1 ,512,258 1 ,235,491

1,259,695 143,079

35 ,544 6,723

25,140 19,612

1,006,413 143,079 35,544 6,723

25,140 19,612

156,926 169,176

43,467 18,341 49,424

1,489,793 1 ,236,511

22,465

460,735

$483,200

275,747

576,855

$852,602

1 ,437,333

(201,842)

492,472

$290,630

($7,452) (12,156)

(242,201) (14,958)

(276,767)

(150,513) (26,097) (7,923)

(11,618) (24,284) 19,612

(200,822)

(477,589)

(84,383)

($561,972)

See independent auditor's report.

24

Vernon Parish Clerk of Court LeesvI IIe, Lou IsI ana Ret Iree HeaIthca re Plan June 30, 2014

Schedule of Fund I no Procress

Schedule 2

Actua rial

Va I uatI on

Date

June 30, 2013

June 30, 2010

ActuarI a I

Va I ue

of Assets

ActuarI a I

Accrued

LI a bI I Ity

(AAL)

$5,882,844

$1,842,266

Unfunded

Actua rial

Accrued

LIabI I Ity

(UAAL)

$5,882,744

$1 ,842,266

Funded

Rat I o

0.00%

0.00%

Covered

PayroI I

$605,935

$605,935

UAAL as a

Percentage

of Covered

PayroI I

881.89%

304.04%

See independent auditor's report.

25


55 Terra Avenue Alexandria, LA 71303

318/442-7568 Fax: 318/442-9495

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


I have audi ted, i n accordance with auditing standa rds general Iy accepted in the Un i ted States of America and the standards appi icable to financial audits contained in Gov e r nme nt Audi ting Standards i ssued by the ComptroI Ier Genera I of the Un i ted States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Vernon Parish Clerk of Court, Leesvi Ile, Louisiana, as of and for the year ended June 30, 2014, and the related notes to the financial statements , wh i ch co I I ect i ve I y compr isethebasic financial statements of the primary government and have issued my report thereon dated December 26, 2014.

Internal Control Over Financial Reporting

In planning and performing my audit of the financial statements, I considered the ent i ty's i nternaI controI over financial report i ng (i nternaI controI) to determ i ne the auditing procedures that are appropriate in the circumstances for the purpose of expressing my opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial report i ng. Accord i ngIy, I do not express an opinion on the effect i veness of internal control over financial reporting.

A def i c i ency i n i nterna I controI ex i sts when the des i gn or operat ion of a controI does not al low management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A mater i a I weakness is a def i c i ency, or comb inationofdeficienci es, i n i nternaI controI , such that there is a reasonab I e poss i b i I i ty that a mater i a I m i sstatement oftheenti ty ' s financial statements will not be prevented , or detected and cor rected on a t i me Iy bas i s. A s i gn i f i cant def i c i ency is a def i c i ency, or comb ination of deficienci es, i n i nternaI control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

My consideration of internal control over financial reporting was for the I imited purpose described in the first paragraph of this section and was not designed to identify alI deficiencies in internal control that might be material weaknesses or s i gn i f i cant def i c i enc i es. G i ven these I i m i tat ions, during my aud i t I did not i dent i fy any deficiencies in internal control I consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

CompI iance and Other Matters

As part of obta i n i ng reasonabIe assurance about whether ent i ty's f i nanc i a I statements are free of material misstatement, I performed tests of its compI iance with certain prov i s i ons of Iaws, reguI at i ons, contracts, and grant agreements, noncompI i anee w i th which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compI iance with those provisions was not an objective of my audit, and accordingly, I do not express such an opinion. The resuIts of my tests d i scIosed no i nstances of noncompI i ance or other matters that are required to be reported under Government Auditing Standards.

26

VERNON PARISH CLERK OE COURT Leesvi Ile, Louisiana GAO Report: (Cont i nued)

Purpose of this Report

The purpose of this report is solely to describe the scope of my testing on internal contro I and comp I i a nee and the resu I ts of that test i ng , and not to prov ide an opinion on the effectiveness of the entity's internal control or compI iance. This report is an i nteg ra I partofan audit per formed i n accordance with Gov e r nme nt Audi t i ng St andar ds in considering the entity's internal control and compI iance. Accordingly, this commun i cat i on is not su i tab Ie for any other purpose. Under Louisiana Rev i sed Statute (LSA-R.S.) 24:513, this report is d i str i buted by the Louisiana Leg i sI at i ve Aud i tor as a publ ic document.

Herbie W. Way Herb i e W. Way Alexandria, Louisiana December 26, 2014

27

VERNON PARISH CLERK OE COURT Leesvi Ile, Louisiana GAO Report: (Cont i nued)

ScheduIe 3


55 Ter ra Avenue Alexandria, LA 71303

318/442-7568 Eax: 318/449-9159

MANAGEMENT LETTER FOR THE YEAR ENDED JUNE 30, 2014


The resuIts of my procedures d i so I osed the fo I I ow i ng areas of concern as i f re Iafes to possible noncompI iance with Louisiana law:

2014-1 The General Fund budget, as adopted by the clerk of court, may not have compI ied with Louisiana law as it relates to adopting and amending anuuaI budgets s i nee the revenues and expend i tures reported unfavorabIe variances in excess of 5 percent.

Louisiana requires that the budget be amended when:

Act ua I revenues p I us ant i c i pa ted revenues to year-end are f a i I i ng to meet budgeted revenues by 5 percent or more. Revenues reported an unfavorable variance of 22.40 percent.

Act ua I expend i tures p I us ant i c i pa ted expend i tures to year-end are exceeding budgeted revenues by 5 percent or more. Expenditures reported an unfavorable variance of 13.97 percent.

Management has provided written assurances that future budgets wi I I be monitored and amended in accordance with Louisiana law.

Respectfully submitted,

Herbie W, Way Herbie W. Way Certified Publ ic Accountant Alexandria, Louisiana December 26, 2014

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vernon parish clerk of court -...

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