Sidl ANNUAL FINANOAL REPORT ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NEW ORLEANS. LOUISIANA FOR THE YEAR ENDED DECEMBER 31.2009 U'r ider provisions of state law, this report is a public documenl.Acopyofthereporthas been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court. Release Date_ Postlethwaite & Nettervilie A Profetsional Accounting Corporalion www.pncpa.com
Transcript
Sidl
ANNUAL FINANOAL REPORT
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE
NEW ORLEANS. LOUISIANA
FOR THE YEAR ENDED
DECEMBER 31.2009
U'r ider provisions of state law, this report is a public documenl.Acopyofthereporthas been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court.
Management's Discussion and Analysis (Unaudited) 3-15
BASIC FINANCIAL STATEMENTS:
GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS)
Statement of Net Assets A 16
Statement of Activities B 17
FUND FINANDAL STATEMENTS (FFS)
Governmental Funds:
Balance Sheet C 18
Reconciliation of Ae Governmental Funds Balance Sheet to the
Statement of Net Assets D 19
Statement of Revenues, Expenditures, and Changes in Fund Balances E 20-21
Reconciliation of the Governmental Funds Statement of Revenues. Expenditures,
and Changes in Fund Balances to the Statement of Activities F 22
Proprietary Funds:
( Statement of Net Assets G 23
Statement of Revenues, Expenses, and Changes in Fund Net Assets H 24
Statement of Cash Flows [ 25
Fiduciary Funds:
Statement of Fiduciary Net Assets j 26
Statement of Clmnges in Fiduciary Net Assets K 27
NOTES TO FINANCIAL STATEMENTS 28-49 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MANAGEMENT'S DISCUSSION AND ANALYSIS:
SCHEDULE Schedule of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual - General Fund A-1 50 Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Debt Service Fund A-2 51
OTHER SUPPLEMENTARY INFORMATION:
Combining Balance Sheet - Special Revenue Funds B-1 52
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Special Revenue Funds B-2 53
TABLE OF CONTENTS (CONTINUED^
SCHEDULE PAGE
OTHER SUPPLEMENTARY INFORMATION fCONTINUEDl:
Combining Statement of Net Assets - Non-Major Enterprise Funds B-3
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets -Non-Major Enterprise Funds ! B-4
j Combining Stetement of Cash Flows -Non-Major Enterprise Funds B-5
Combining Statement of Fiduciary Net Assets - Agency Funds B-6
Comparative Statements of Activities -Expenses for the years ending December 31,2009,2008, and 2007 C-1
Comparative Balance Sheets -General Fund as of December 31,2009,2008, and2007.... C-2
Comparative Statements of Revenues, Expenditures, and Changes in Fund Balance -General Fund for ihe years ending December 31,2009,2008, and 2007 C-3
SINGLE AUDIT SECTION
Schedule of Expenditures of Federal Financial Awards
Independent Auditors* Report on fiitmial Control Over Financial Reporting and on Compliance and Other Matters Based on an Aiuiit of Financial Statements Performed m Accordance v/iih Government Auditing Standards [
A Prbloitional Accuunling Cotpofoiiori Aiiucioted OKkei in Principni CiricJ o( liio United Sia'cs
WWW, pnc po. com
Independent Auditors' Report
The Honorable Marliii N. Gusman Orleans Parish Criminal Sheriff's Office New Orleans, Ixiuisiana
We have audited the accompanying financial statements of tlie governmental activities, the business-type activities, each major fund, and the ag^egate remaining fund information of the Orleans Parish Ciiminal Sheriffs Office (tlie Office) as of and for the year ended December 31, 2009, which collectively comprise tlie Office's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Office*s management. Our rcsponsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in tiie United States of America and tlie standards applicable to fmancial audits contained in Government Auditing Standards, issued by tlie Comptroller Genei al of the United States. Those standards require that we plan and perform the audit to obtain re^onable assurance about whetlier tlie financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements refen-ed to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Orleans Parish Criminal Sheriffs Office as of December 31, 2009, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.
Li accordance mth Government Auditing Standards, we have also issued our report dated June 11,2010, on our consideration of the Office's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and gi'ant agreements and other matters. The purpose of that report is to de^ribe the scope of our testing of internal control over financial reporting and compliance and tiie results of that testmg, and not to provide an opinion on the internal conti'ol over financial reporting or on compliance. Tliat report is an integi'al pait of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.
30th Floor ~ Energy Centre • 1100 Poydras Street • New Orleans, LA 70163-3000 • Tel: 504.569.2978
Accounting prmciples generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information on pages 3 through 15 and SO through 51, respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic fmancial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of fmancial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary mformation in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic fmancial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Office's basic fmancial statements. The combining, individual nonmajor fund, and comparative financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of State, Local Governments and Non-Profit Organizations, and is also not a required part of the basic financial statements of the Office. The combining and individual nonmajor fund fmancial statements and the schedule of expenditures of federal awards are the responsibility of management and were derived fi"om and relate directiy to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the fmancial statements and certain additional procedures, including comparing and reconciling such information directiy to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.
New Orleans, Louisiana June II, 2010
P&N
REQUIRED SUPPLEMENTARY INFORMATION
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
DECEMBER 31.2009
Management's discussion and analysis of the Orleans Parish Criminal Sheriff's Office's (the Office) financial performance provides a narrative overview and analysis of the Office's financial activities for the year ended December 31, 2009. This discussion and analysis focuses on the current year's ending balances, activities and resulting changes in comparison with the prior year's information. The Office's financial performance is discussed and analyzed within the context of the accompanying fmancial stetements and disclosures following this section.
FINANCIAL HIGHLIGHTS
Government-Wide
The assets of &e Office exceeded its liabilities at December 31, 2009 by $62.8 mUiion (presented as "net assets"). Restricted balances are comprised of •flie following: (1) capital assets, net of related debt, of $60 million, (Z) assets for future intergovernmental transfers of $12.5 million, (3) assets restricted for debt service of $25.3 million, (4) assets restricted for capital improvements net of related unexpended debt proceeds of $3.5 million, and (5) assets restricted for elderly victims assistance of $0.7 million. There are no unrestricted net assets on a government-wide basis available for operations but a shortage of $39.3 million.
The Office's net assets at December 31, 2009 increased by $3.5 million, or 6% over December 31, 2008. The increase in net assets was primarily due to the increase in charges for services coupled with expense cost cutting measure.
Fund Level
At December 31, 2009 the Office's governmental funds reported combmed ending fund balances of $58.6, an increase of $7.6 million from the prior year! The General Fund's fimd balance decreased by $3.9 million to a fund balance of $.5 million. The Capital Projects Fund increased by $6.3 million to a fimd balance of $32 miUion. The Debt Service fund balance increased by $5.2 million to a total flmd balance of $25.3 million.
The General Fund's unreserved fund balance decreased from $.7 million to a deficiency of $ 1.3- mtllion.
Capital Assets
The Office contmues with the reconstruction following Katrina devastation and invested $13.8 million in capital additions primarily fimded through FEMA funds.
OVERVIEW OF THE FINANCIAL STATEMENTS
This Management's Discussion and Analysis document introduces the Office's basic financial statements. The basic financial statements include three parts: (1) government-wide financial statements (accrual basis), (2) fimd financial statements, and (3) notes to the basic financial statements. The Office also includes in this report additional information to supplement the basic financial statements.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The Office's annual report mcludes two government-wide financial statements. These government-wide financial statements are designed to provide readers with a broad overview of the Office's finances, b a manner similar to a private-sector business with its basis in accrual accounting and elimination or reclassification of activities between funds.
The first of these government-wide statements is the Statement of Net Assets. This statement of position presents information that includes all of the Office's assets and liabilities, with the difference reported as net assets. Over time, increases and decreases in net assets may serve as a useful indicator of whether the financial position of the Office as a whole is improving or deteriorating.
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDTTED)
DECEMBER 31.2009
GOVERNMENT-WIDE FINANCIAL STATEMENTS-continued
The second government-wide statement is the Statement of Activities, which reports how the Office's net assets changed during the current year. All cunent year revenues and expei^es are included regardless of when cash is received or paid. The government-wide fmancial statements present governmental activities of the Office that historically are principally supported by per diem charges to the City of New Orleans, the Louisiana Department of Public Safe^ and Corrections, and federal agencies. The primary purpose of these governmental activities is the custody of inmates. The busmess-type activity is the commissary operations. The government-wide financial statements are presented on pages 16 and 17, Exhibits "A" and "B" of this report
FUND FINANCIAL STATEMENTS
Afiind is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Office like other state and local govemments uses fund accounting to ensure and demonstrate compliance with finance-related laws and regulations. Within the basic financial statements, fund financial statements focus on the Office's most significant fiinds rafter than the Office as a whole.
The Office's fiinds are classified into three categories: governmental fimds, proprietary fimds, and fiduciwy fimds as follows:
Governmental fiinds are reported in the fund financial statonents and encompass essentially the same function reported as governmental activities in the government-wide fmancial statements. However, the focus is on the near-term and may be usefiil in the evaluation of a government's near-term financing requirements. The focus is on mflows and outflows of spendable resources, as \w!i as, on balances of spendable resources available at the end of the year.
Since the government-wide focus includes the long-term view, comparisons between these two perspectives may provide insight into the long-term impact of short-term financing decisions. Reconciliations between these two prospectives are provided. The reconciliation between the govemmenrnt fimds balance sheet and the statement of net assete is on page 19, Exhibit "D". The reconciliation between the governmental fiinds statement of revenues, expenditures and changes in fiind balances, and the statement of activities is on page 22, Exhibit "F'.
The basic governmental fund financial statements are presented on pages 18 and 20-21, Exhibits "C" and "E" of this report.
Proprietary fimds are reported m the fund financial statements and report non-major enteiprise funds (commissary operations) and an internal service fund (a self-insurance fiind). The basic proprietary fund financial statements are presented on pages 23-25, Exhibits "G". "H", and'T' of this report.
Fiduciary funds are reported in tiie fund financial statements and i^ort a defined contribution empioyee pension plan and individual prison inmate agency accounts. Activities from Mucmy fimds are not included in the goverament-wide financial statements because the Office cannot use these assets for its operations. The basic fiduciary fimd financial statements are presented on pages 26 and 27, Exhibits'T' and "K" of this report.
NOTES TO THE BASIC FINANCIAL STATEMENTS
The accompanying notes to the financial statements provide infomiation essential to a fiill understanding of the govemraent-wide and fiind fmancial statements. The notes to the financial statements begin on page 28 of this report
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
DECEMBER 31. 2009
OTHER INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Office's budget presentations. Budgetary comparison statements are included as "required supplementary information" for the general fund and debt service fimd. These schedules demonsti^te compliance with the Office's adopted and final revised budgets. Required supplemental information can be found on pages 50 and 51, Schedules "A-l" and "A-2" of this report. This report also includes as other supplementary information certain combinmg statements and statements with comparative data to prior years on pages 52-60. A single audit section, which includes a Schedule of Expenditures of Federal Financial Awards begins on page 61.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following table provides a summary of the Office's net assets:
Assets:
Unrestricted current and other
Restricted
Capital
Total
Liabilities:
Current
Long-teni)
Total
Net Assets:
Investment in capital
assets, net of related ddit
R^tricted for.
Elderiy victims
Debt service
Capital improvements
Intergovernmental transfers
Unrestricted
Total net assets
Governmental Activities
2009
$ 75,157,095
-
73,978,762
149,135,857
35,171,165
51^0,998
86J92.163
60,024,353
737,753
25,349.528
3.501.785
12,487.407
(39,357,1321
$ 62,743.694
2008
$ 68.047,410
59,539
65,205,470
133312,419
12,352,133
61,736,393
74,088,526
•
46,419,204
728,651
20,128,803
2.537.691
13,159,006
(23,749.462)
S 59.223,893
Summan
Business'
2009
$61,313
,
.
6U13
--
- ^
-
-
-
-
613)3
$61313
' of Net Assets
•Type Activities
2008
$ 61313
-.
61313
--
-
-
-
-
-
61313
$ 61313
Primary Government Totals
2009
S 75,218,408
-
73.978.762
149,197,170
35,171,165
51.220.998
86392.163
60.024353
737.753
25349.528
3.501,785
12,487,407
(39,295,819)
$ 62,805,007
2008
$ 68,108,723
59,539
65,205,470
133373,732
12352.133
61,736,393
74.088,526
46,419.204
728,651
20.128,803
2.537.691
13,159,006
(23,688.149)
$ 59.285.206
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE MANAGEMENT'S DISCUSSION AND ANALYSIS OJNAUDJTED)
DECEMBER 31. 2009
GOVERNMENT-WIDE FINA?*^CIAL ANALYSIS-continued
As noted above the net assets of the Office increased by 6% ($62.8 million compared to $59.3 million).
There were several significant changes in net assets. Investment in capital assets net of related debt increased fi-om $46.4 in 2008 to $60.0 million in 2009. Net assets restricted for debt service increased by $5.2 million. Net assets for capital improvements net of une^qiended bond issues increa^d by $1 million. Unrestricted net assete decreased $15.6 million primarily due to operating losses and investment in capital assets.
Approxhnately 96% of the Office's net assets represent ite investment in capital assets (e.g. land, buildings and improvements, maintenance equipment, office fiimiture and equipment, vehicles, and constmction in progress) less any related debt used to acquire diose assets that is still outstanding, liie Office uses these capital assets to provide services to citizens and inmates; consequently, these assets are not available for fiiture spending. AJthough the Office's investment m Its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since capital assets themselves cannot be used to liquidate these UabiliUes. The investment in net capital assets has increased by $13.6 million as the investment in net assets and repayment of debt continued. The restricted net assets mclude $25.3 million set aside to liquidate debt. The amount set aside to liquidate debt increased by $5.2 million primarily as a result of the cooperafive endeavor agreement with the State of Louisiana, which lent fimds through 2009 to service debt service requirement in 2006 thro i^ 2009. Principal and interest will need to be repaid starting in 2012. The Office continued to collect ad valorem taxes in order to repay the debt in the fiiture. The Office is spreading the collection of ad valorem taxes so there will not be an undue hardship on taxpayers to repay the debt in the fiiture. The Office's most recent arbitrage consultant's opinion is that-there is-ne-aFbitragerebateliability as of January 1,2009 and.there is no January 1,2009 liability for excess investment yield.
Funds held for intergovernmental transfers (fimds for other governmental agencies for their capital improvements) remained ^jproximately $13 million. The Office cannot use these funds.
Uiu"estricted net assets are the part of net assets that can be used to fmance day-to-day operations without constraints established by debt covenants, enabling legislation, or other legal requirements. Unrestdcted net assets decreased $15.6 million and are in a deficit position at December 31,2009 of $39.4 million.
Unrestricted current and odser assets increased by $7.1 million due primaiily to the issue of an additional $10 million of bonds.
Capital assets mcreased $8.8 million as the rebuild of the campus continues following the devastation of Katrina. This consists of $13.8 million of additions net of depreciation of $4.9 million and $0.1 million of disposals.
Current Uabihties have increased $22.8 million as a result of the mcrease in accounts payable of $3.5 million and the inclusion of the Special Community Disaster loan of $18 million as current. OPCSO is in the process of asking for loan forgiveness and In the alternative OPCSO can ask for a 5-year renewal of the loan. At this time the State Bond Commission is not accepting paper woik for renewals.
Long term debt decreased by $ 10.5 million. This included the reclassification of tiie $18 miUion Special Community Disaster loan as current and $5.8 million of normal debt payments offset by the additional issuance of $10 million general obligation bond for capital improvements and $5.2 million of additional Louisiana Cooperative Endeavor Agreement Debt.
The net assets of the Office's business-type activities had no change since the profits fi-om the commissary operations were transferred to die General Fund.
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
DECEMBER 31.2009
GOVERNMENT>WIDE FINANCIAL ANALYSIS-continued
The following table provides a summary of the Office's changes in net assets:
Program;
Charges for services
Opera^g grants
Capital grants
Genial:
Ad-valorem taxes
Invc!>tment income
Othw
biterfimd transfers
Summary of Changes in Net Assets
Govermnental Activities Business-Twc Activities Primary Government Totals
2009 2008 2009 2008 2009 2008
$ 42.605^37
4.138,303
10.189.127
6.110,021
720,085
2,596,996
474.161
$ 36,508.255
5,896,845
8,774,633
7.506,259
1,914,796
2,094.555
324,268
$ 524,698 $ 391.808
-
-
-
-
-
-
$ 43,129,935
4.138.303
10.189.127
6,110,021
720.08S
2,596,996
474,161
$ 36,900,063
5.896.845
8.774.633
7.506,259
1,914,796
2,094,555
324,268
Total revenues and other
g){pCTJgs:
Program e^qxnses:
Custody of prisoners
Intact
Commissary and oflier
General:
Loss on disposal of assets
Transfers to other
governmental agencies
Intcrfund transfers
Total expenses and other
66,833.930 63,019.611
60,491,767
1,983,024
742.647
524.698 391,808 67.358,628
68,056.766
1.459,949
96,690 12.104,879
172,325
50.537
474.161
67,540
324^68
96.690
742.647
474,161
63,314.128 81,793.919 524.698 391.808 63,838.826
63,411.419
60,491.767
1,983.024
50.537
68,056,766
1,459.949
67,540
12,104,879
172,325
324.268
82,185,727
Net increase (decrceisc) 3,519,802 (18,774,308) 3.519.802 (18,774.308)
Beginning net assets 59,223,893 77.998,201 61.313 6U13 59^85,206 78.059,514
Ending net a s s ^ $ 62,743,695 S 59,223.893 $ 61.313 $ 61.313 $ 62.805,008 S 59,285,206
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
DECEMBER 31. 2009
GOVERNMENT-WIDE FINANCIAL ANALYSIS-continued
The Office is responsible for one of the core components of the local criminal justice system, which is the operation of the Parish jail system. This responsibility inclildes providing for ihe care, custody, and control of subjects housed in jail facilities, as well as, the processing of all individuals anested within die City of New Orleans. Additionally, the Sheriff serves as the Executive Officer for the Orleans Parish Criminal District Court, which mcludes the execution of all writs, orders, and process^ including warrants and subpoenas, as well as, providing security for the court system. Ancillary fimctions of the Office mclude, but are not limited to: law enforcement patrols, the operation of search and rescue, mounted, K-9, motorcycle, and SWAT units, community service programs, work release programs, and inmate rehabilitation.
Historically, the Office is heavily reliant on housing municipal, state, and federal inmates to support its operations. Pre-Katrina inmate housing revenues provided 83.6% for 2004 of the Office's total revenues from governmental activities. However, for 2009 and 2008 this has decreased to 64% and 58% respectively. Charges for services pre-Katrina for the year ended December 31,2004 were $64.3 million and in 2009 are only $42.6 million. This is a 34% decline in charges for services revenue. TTie prison population was approxunately 6,000 imnates prior to Katrina. Following Katrina, tiiere was a complete evacuation of all inmates. By February 2007 all evacuated inmates and other Orleans Parish mraates were back in the Office's custody. Charges for services increased 17% in 2009 as the average number of prisoners grew from 2,566 average daily population in 2008 to 3,238 average daily population m 2009. Currently the Office is housing approximately 3,500 inmates.
While charges for services have grown FEMA operating and hurricane infrastructure grants have decrea^d. Coital grants from FEMA continue to increase as damaged buildings are rebuilt.or repaired.
Ad valorem tax collections to ftmd debt service decreased 19%. Investment income decreased 62%.
Sfringent cost cutting measures including reduction in overtime and maintenance costs during 2009 resulted in an 11% ($7.6 million) decrease in program expenses for custody of prisoner and other duties. Following Hurricane Katriim, the number of employees decreased from approximately 1,200 enq)Ioyees to less than 400 employees. At December 31, 2009, there were approximately 730 employees which was a reduction of approximately 50 employees from December 31, 2008. A significant amoiuit of overtime due to Hturicane Gustav was also included in 2008. Personnel related expense decreased approxunately $1.6 million in 2009. Contracmal services increased by $6.3 million primarily due to decreased estimates for legal claims, computer consulting and maintenance repairs. Materials and supplies increased by $.5 million. Depreciation continued to increase as buildings are repaired and replaced. Depreciation increased to $4.9 million from the prior years' depreciation of $4.1 million.
Business-type activities are the commissary sales to inmates. Operating income, which is primarily a factor of the number of inmates, increased 34%. The operations of the commissary were outsourced effective August 6,2007.
FINANCIAL ANALYSIS OF THE OFFICE'S FUNDS
As noted earlier, the Office uses fimd accounting to ensm^ and demonstrate compliance with finance related legal requirements and to assist in the management of its budgetary operations.
Governmental Funds
The focus of the Office's governmental funds is to provide information on near-term inflows, outflows and balances ot spendable resources. Such information is usefiil in assessing the Office's financing requirements. In particular, unreserved fund balance may serve as a useftil measure of a government's net resources available for spending at the end of the fiscal year.
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
DECEMBER31.20Q9
FINANCIAL ANALYSIS OF THE OFFICE'S FUNDS-continued
Governmental Funds-continued
As of December 31, 2009 the Office's governmental funds reported combmed ending fimd balances of $58.6 million, an increase of $7.6 million or approximately a 13% increase from the prior year. There is a $1.3 million deficit in unreserved fund balances.
The combined fimd balance is reserved and is not available for new spendu^ because it has afready been conunitted to 1) offset the cost of inventory afready purchased ($1 million), 2) liquidate open purchase orders and signed construction contracts ($.7 million), 3) monies for fiitaire capital projects fbr the Office ($19.5 million) and for other criminal justice agencies ($12.5 million), 4) monies collected to fimd debt ($25.3 million), and 5) monies for the assistance of elderly victims ($.7 million).
Major Governmental Funds
Tlie General Fund is the Office's primary operating fund and largest source of day-to-day service delivery. The (jeneral Fimd's fund balance decreased by $3.9 million.
Despite increases of $7.6 miUion (27%) in charges for the custody of inmates and a cut of $3.7 million (6%) in operating expenses die General Fund had a deficiency of revenues over expenditure of $5.7 million. This deficiency was partially offset by a transfer of $2.6 million of accumulated net assets m tiie Internal Service Fund to the (jeneral Fimd. Federal grants decreased from $14.4 million to $12.2 prunarily due to the end of the Criminal Justice Infi^struclnre Recovery federal grant. There was $1.5 million included in 2008 revenues for this Infrastructure Recovery grant, FEMA funds continue to be received; however, FEMA fimds are primarily for caphal rebuilds and replacement and do not fund current operations.
Total 2009 General Fund expenditures decreased by $6.2 million or 9%. Personnel expenses decreased across all Itmctions as the number of employees decreased and overtime was strictiy monitored. Central Services decreased as the Office has taken a harder stance on settlement of self-msurance claims and the estimate for claims and judgments has been adjusted accordingly. Records and booking costs decreased approxunately $.9 million due partially to. higher costs in 2008 for computer consultii^ for modifications to the billing s> tem arid various costs associated with the opening of the new temporary mtake and processuig center in June 2008. Plant and maintenance costs continued to increase approximately $1 million, partially due to continuing demolition and environmental clean up costs as buildings over 50% damaged by Katrina were demolished. Capital outiay costs increased slightly and some of these costs were paid from the capital projects (bond fmanced) fund instead of FEMA funds, which are included in the General Fund.
The other major governmental fimds are the Capital Projects Fund and the Debt Service Fund. The Capital Projects Fund's fimd balance mcreased by $6.3 million due to the issuance of $10 million of general obligation bonds. The Capital Projects fimd paid $3.3 milhon of die non-FEMA share of the rebuilding efforts. The Debt Service fimd balance increased by $5.2 milUon net of current debt service payments of $6 million. In July 2006, the Office and die State of Louisiana (the State) entered into a Cooperative Endeavor Agreement (the Ag^ment) whereby the State agreed to lend up to $17,256,120 to the Office from State funds on deposit in the Debt Service Assistance Fund, authorized by the Gulf Opportunity Zone Act of 2006 and Act 41 of the First Extraordinary Session of the Louisiana Legislature of 2006. This loan is to assist in payment of debt service requirements for 2006 to 2009 due to disruption of tax bases and revenue streams caused by Hurricanes Katt-ina and Rita. No principal or interest is payable during the initial five year period of the loan. After the expiration of the initial five-year period, ttie loan bears interest at a fixed rate of 4.64 percent. During 2009, $5.2 million was advanced to the Office.
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
DECEMBER 31.2009
FINANCLVL ANALYSIS OF THE OFFICE'S FUNDS-continued
Proprietary Funds
The Enterprise Fund (corranissary fiind) increased its net operating mcome by 46%. This is attributable primarily to the 36% increase in die daily average population from 2008 to 2009. The profits were transferred to the General Fund.
The Internal Service Fund (self-insurance fimd) is funded by "premiums" paid by the General Fund for expected claims for general liabili^, property and casualty and envfronmental. Clahn liabilities are reevaluated periodically. During 2008, claim payments were $12.6 million primarily on one class action suit. During 2009, only $1,9 million was paid out and current year claims and changes in estimate were $.6 milhon.
BUDGETARY HIGHLIGHTS
The General Fund - When the original 2009 budget was adopted, it was anticipated that the inmate population would increase when die Orleans Parish Prison opened in 2008 and that the federal inmate popuMlon would only decrease slightly. Orleans Parish Prison -was not opened until Februay 2009 and federal mmate stays decreased as they were processed and transferred out more quickly. When the original budget for 2009 was Copied the Office expected to have the vehicle maintenance complex substantially completed and die kitchen warehouse under construction. Construction has not jprogressed as fest as expected. The 2009 budget was amended to reduce custody of prisoner charges by $2.3 million and federal grants by $12.9 million. The cxpenditui-es for the original budget were $94 miUion and were amended to $62.5 million. These reductions in expenditiires correlate to the lower than expected inmate population and die IKS aggressive spending of recovery fiinds.
The Debt Service FUXMI - The 2009 budget was amended to reflect better dian expected collections on ad valorem taxes and increased investment income.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The Office's investment in capital assets, net of accumulated depreciation, as of December 31, 2009, was $74.0 million. Increases to capital assets, primarily fiinded through FEMA, were $13.8 million. Reductions in capital assets were $4.9 million of depreciation and as noted above capital assets were reduced $.1 million for disposals net of accumulated depreciation.
Major capitol events during 2009 include the following: • Completion and opening of the Vehicle Maintenance Facilities • Test pile driving on die new Kitchen Warehouse site • Completion of bid package for ihe Kitchen Warehouse • Improvements and expansion of the Brcrad Street Work Release FaciUties
10
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
DECEMBER 31.2009
CAPITAL ASSETS AND DEBT ADMINISTRATION-continued
The following table provides a comparative summary of capital assets:
2009 2008
Land $ 6,031.547 S 5,907.477
Construction in process $ 12,956,196 $ 4,039,438
Depreciable assets;
Buildings and improvements 64,465,565 61,274,792
Operating equipment 2,902,898 . !,783,120
Furniture and equipment 4,503,797 4,413,203
Vehicles 7,777.280 7,721.507
Total depreciable assets 79,649,540 75.192.622
Less accumulated depreciation 24.6S8.S21 19,934,067
ORLEANS PARISH CRIMINAL SHERIFF'S OFHCE MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
DECEMBER 31.2009
CAPITAL ASSETS AND DEBT ADMlNISTRATION-contiimed
Long-Term Obligations
At die end of the fiscal year, the Office had approximately $74.4 million m long-term obligations as shown in the table below:
General obligation bonds
Certificate of indebtedness
Special Community Disaster Loan
Go Zone (Cooperative Endeavor)
Claims and judgments
Accrued stck and aimual leave
Other
The long-term obligations of the Office increased by 12.17%. Significant increases include the 2009 $10 milHon issuance of general obligation bonds for capital improvements. In 2008 an initial SIO million was issued out of the $63,225 million approved by the voters on October 4, 2008. Other significant increases include the draw of $5.3 million of Go Zone fimds under a $17.3 million Cooperative Endeavor Agreement with the State of Louisiana, which is available to fimd debt service. Principal and interest paymente on the Cooperative Agreement start in 2012. During 2009 the Office retired $5.8 million of bonds and notes payable. Other si^ficant decreases include a net $1.3 million reduction in die estimate of claims and judgments. See Note 9 of the financial statements for additional mformation regarding long-term debt.
In February 2010 the national rating agency, Standard Sc Poor's upgraded the bond rating of the Office's general obligation bonds approved in October 2008 to an "A" rating. This rating is a strong investment grade rating and represent a three-step upgrade fi-om the prior bond rating of BBB.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
Economic Factors
The Metropolitan Report Volume 20, No. 3 published September 2009 by the Division of Busmess and Economic Research University of New Orleans covers the economic activity in the New Orleans meti-opolitan statistical area which includes Jefferson, Orleans, Plaquemmes, St. Bernard, St. Charles, St. John die Baptist and St. Tammany Parishes. The report has die foUowmg highlights. Population fell fi-om 1.3 million people just before Katrina, to a low of about 670,000 in faU 2005. Now the population stands at approximately 1,164,000. The overall recovery of population is 89% of pre-Katrina levels whUe diat of area jobs is 86%. This year, population continues to grow about 2% while the number of jobs feU 0.3% The largest job gains were in local and state government and private educational services. State and local government employment are still only 84% and 80% recovered respectively. The steepest population growth is occuning in Orleans and St. Bernard Parishes showing that recovery is still ongomg in tiiose areas. Orleans population is estimated at 72% of pre Katrina population.
12
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
DECEMBER 31.2009
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES continued
Economic Factors-continued '
The New Orleans Police Department (NOPD) 2009 yearly crime statistics mdicates fliat between 2008 and 2009 there was a 12.34% decrease in total crimes and a 16.07% decrease in per capita crime rates. However, the Office's records of arrested subjects show 56,973 arrests in 2008 and 63,600 arrests in 2009 which is a 12% mcrease in arrests. Arrests for 2010 have decreased to 2008 levels.
Operating Revenues
Historically, the number of inmates housed at the detention fecilities is die primary iactor which impacts die gross revenue available to provide incarceration services to inmates of the City of New Orleans (City), die Louisiana Department of Public Safety and Corrections (DOC), and the federal government (FEDS). The number of inmates held at the detention feciiities at any given time is affected by the number of arrests made by law enforcement authorities and the length of sentences imposed by the courts. Suice Katrina, another major limiting factor is the number of beds available. The per diem paid to the Office to house fliese prisoners varies by type of mmate; whether it is a City inmate, sentenced or unsentenced, a DOC mmate or an mmate of the FEDS. The per diem rate for die City is based on a consent judgment in federal comt. The per diem rate for DOC inmates is based on state statutes, and the per diem for the FEDS is based on negotiated contracts.
Pre-Katrina, the Office had ^proximately 7,200 beds. The average nimiber of inmates per day in 2004 was approximately 5,700. The average per day for 2005 was approximately 6,000 inmates per day until Hurricane Katrina. At die end of 2009 a UtUe over 3,500 beds were avaUable. In February 2009 the opening of the Old Parish Prison added 800 beds. Additional work release beds were also added in 2009. The Office continues to pursue increases with the FEDS md City. Tlie City per diem has not been raised smce July 1, 2003. The Office is also actively pursuing increases m the ntimber of DOC and FEDS inmates.
Operating Expenditures
The largest operational cost for die Office is personnel. The Office had approximately 1,200 employees pre-Katrina. Following the storm, only a core group returned. As facilities came back on line, the Office brought back its personnel. Currentiy, the Office employs approxinately 730 people. In order to be competitive, and to retain and hire the personnel needed to staff the fecilities, raises and salary adjustments were made in prior years. A new temporary jail to house 500 prisoners is expected to open in December 2010 or in the first quarter of 2011. The Office is ag^:essively monitoring and reducing overtime pay. In order to stafFfiar the new facility and to cut overtime during 2010, the Office will be hiring additional staff. Due to Katrina damage, the Office is using the older less efficiently designed detention facilities and is also operating with a staff with less experience than pre-Katrina. These two conditions have the impact of requiring a higher depu^ to inmate ratio than pre-Katrina.
Total expenditures in the 2010 General Fund budget, excluding the cjqjital outlay, are anticipated to increase sli^tly in total. Personnel costs are budgeted to mcrease but contractual and supplies and materials costs will decrease due to continued stringent cost cutting. Capital outlays are projected to increase to $96,600,000 as the recovery pushes forward. Project managers were engaged in December 2008 and this fl«es up OPCSO personnel to concentrate on operations while professional managers can accelerate the recovery process.
Non Operating Revenues and Expenditures
hi post Katrina there are significant oUier revenues and rapenses, which impact the Office. State and federal grants related to the disaster had a significant impact on 2008 and 2009. FEMA total grants are expected to increase to over $250 million (current obligated fimds exceed $204 million). Cumulative recognized FEMA accrual revenues are approxunately $59.3 million. The additional FEMA revenues will be recognized as buildmgs and other reimbursable assets are repaired or replaced.
13
ORLEANS PARISH ORIMINAL SHERIFF'S OFFICE MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
DECEMBER 31. 2009
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES-continued
Non Operating Revenues and Expenditures^continued
The 2010 Budget has a $604 tiiousand operating loss, which was to be fijnded throu^ die beginning fitnd balance at December 31, 2009. The audited fimd balance is insufficient to fimd this loss; however, the Office has received a $6 milUon operating loan to be repaid though fiimre revenues. This loan is due June 30,2011. Also the Orleans Parish Criminal Sheriffs Office effective May 3, 2010 has been consolidated with the Orleans Parish Civil Sheriffs Office and the combined fimd balance is sufficient to fiind the deficit. A revised budget encompassing the Criminal and Civil operations of the consolidated Office has not yet been adopted.
Significant Factors
As noted above effectiw May 3, 2010, the Criminal and Civil Sheriffs departments of Orleans Parish have been consolidated.
The Office has been struck by several hurricanes in the last four years, with the most recent being Hurricane Gustav on September 1, 2008. Fortunately Hurricane Gustav did not cause serious damage to die Office's faciUties. The Office continues the rebuilding process. Federal legislation now allows the forgiveness of Special Communily Disaster Loans. Specific regulations for the forgiveness have been finalized and the Office has asked for forgiveness. It has not been determined if die Office will be eligible for any forgiveness of its SCDL's: hovrever, the Office is optimistic that substantially all the $18 milHon borrowed will be eligible for foi^iveness. This forgiveness will have no impact on the Fund b^ances but will increase'net assets by whatever is forgiven.
Though much progress has been made since Hurricane Katrina, a substantial amount of work is still to be done. In order for the Office to successfiiUy operate in post-Katrina New Orleans, and to meet the needs of the criminal justice sj^tem, the following critical issues need to be addressed: (1) the restoration of additional detention facilities to increase capacity to hold some of New Orleans most violent and repeat offenders: (2) the restoration of our permanent kitchen production facility to adequately provide for the dietary needs of our increasing offender population; (3) rebuild a modem booking facility that can adequately accommodate the increasing intake volume; (4) increase emphasis and fimding to recruit and retain qualified personnel; (5) purchase much needai equipment for employees so they can complete their missions in a safe and effective manner; and (6) expedite the recovery and remediation process between the City of New Orleans and FEMA so that city-owned facilities under the control of the Office can be refiirbished and placed into operation.
These critical issues are all being addressed but many of them entail major capital projects that will take several years to complete. In the meantime the Office continues to seek alternative fimding and to reduce the operational costs of the Office while continuing to provide the essential detention fecilities, which are an integral part of die criminal justice system of the Parish and are needed to protect the citizens of New Orleans.
14
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
DECEMBER 31.2009
CONTACTING THE OFFICE'S FINANCIAL MANAGEMENT
This fmancial report is designed to provide a genera! overview of the Office's finances, comply widi finance-related laws and regulations, and demonstrate the Office's commitment to public accountability. If you have any questions about this report or would like to.request additional financial information contact the Orieans Parish Crimmal Sheriffs Office, 2800 Gravier Street, New Orleans^ Louisiana 70119. The fmancial report is also available on the Louisiana Legislative Auditor's website at wsvw.lla.ia.gov under "Reports & Date".
ORLEANS PARISH CRIMINAL SHERIFFS OFFICE STATEMENT OF NET ASSETS
nRCF.MBER31.2009
Exhibit "A"
ASSETS: Cash and cash equivalents Investments including accrued interest Intergovernmental receivables Internal balances Interfund receivables Other receivables Prepaid expenses Inventories Capital assete, net of accumulated depreciation
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ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS DECEMBER 31. 2009
Exhibit "D"
Total fund balances for governmental funds at December 31,2009
Total net assets reported for governmental activities in the statement of net assets is different because:
Capital asssets used in governmental activities are not financial resources and therefore are not reported in the funds. TTiose assets consist of:
Land Construction in progiess Buildings and improvements, net of $14,418,938 accumulated depreciation Maintenance equipment, net of $1,071,264 accumulated depreciation OfGcc fiimiture and equipment, net gf 53,756,279 accumulated dcpreciaUon Vehicles, net of $5,412,040 accumulated depreciation
$ 58,625,352
6,031,547 12,956,196 50,046.625
1,831,636 747,519
2,365,239
73,978,762
Deferred revenue - Under modified accrual basis of accounting, revenues are not recognized unless they are deemed "available" to fmance the expenditures of the current period. Accrual basis recognition Is not limited to availability, so cumulative deferred revenues must be recorded.
Long-term liabilities applicable to the OfOce's goveramenval activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in government fiinds, but rather is recognized as an expenditure when due. All liabilides (both current and long-term) arc reported in the statement of net assets.
Accrued interest on bonds Bonds payable Bond premium, net of accumulated amortizadon Bond discount, net of accumulated accretion Accnicd annual and sick leave, long-term portion
Total net assets of governmental activities at December 31,2009
2,457,268
(2,280,539) (68,225,187)
(15,224) 816
(1.797,554)
(72,317,688)
$ 62,743,694
The accompanying notes are an intergral part of this statement. 19
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Exhibit "F"
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES.
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES DECEMBER 31.2009
Total net changes in fund balances at December 31,2009 per Statement of Revenues, E:q)cnditHrcs and Changes in Fund Balances $ 7,638.636
I , • • ,
The change in net assets reported for governmental activities in the statement of activities is ditterent bewuKc:
Governmental funds report capital outlays as expenditures. However, in the statement of acdvlrics the cost of those assets is allocated over their estimated useful lives and reported as deprecuttion expense. This is the amount by which capital outlays of $13,836,277 exceeded depreciation expense of $4,962,694., g „_- „ _
Net book value of capital assets disposed during the year (100,290)
New debt issues provide current financial resources to governmental funds, but issuing debt increases long-term Habilities in the statement of net assets. (15.286,216)
Repayments of bond principal arc reported as financing uses in governmental funds and thus contribute to the reduction in fund balance. In the statement of net assets, however, repayment of debt decreases long-term liabilities and docs not affect the statement of activities. 5,830,000
Change in revenue accruals - Under modified accmal basis of accounting, revenues are not recognized unless they arc deemed "available" to finance the expenditures of the current period. Accrual basis recognition is not limited to availabili^, so certain revenues not avaUable for spending arc recognized in the current year.
Under the modified accrual basis of accounting used in the governmental fimds, expenditures are not recognized for transactions that are not normally paid with expendable available financial resources. In the statement of activities, however, which is presented on the accrual basis, expenses and liabilities are reported regardless of when paid. In addition, interest on long-term debt is not recogriized under the modified accrual basis of accounting until due, rather than as it accrues.
Amortization of bond premium 5,058 Accretion of bond discount (3^00) Accrued interest on bonds (707,757) Accrued annual and sick leave 47,690
(658,209)
Internal service fund is used by the Office to charge the costs of claims, judgements, and legal costs to individual funds. The change in net assets of internal service fund is reported with governmental activities. (2.052.7771
Total change in net assets at December 31,2009 per Statement of Activities $ 3.519,801
(724,926)
The accompanying notes are an intergral part of this statement 22
Exhibit "G"
ORLEANS PARISH CRIMINAL SHERIFFS OFFICE STATEMENT OF NET ASSETS
PROPRIETARY FUNDS DECEMBER 31.2009
ASSETS
CURRENT ASSETS: Interfund receivables Restricted assets:
Investments held in escrow
Business-Type Governmental Activities Activities
Enterprise Funds Internal Non-Major Service Funds
61,313 S 4,320.000
2.789
Total current assets 61,313 4.322.789
LIABILITIES AND NET ASSETS
UABIUTIES: Current liabilities: Claims andjudgnients
Total current liabilities
N^ficnrrent liabilities: Claims and judgments 4,322.789
Total noncurrent liabilities
Total liabilities
4,322.789
4.322.789
NET ASSETS: Unrestricted 61.313
Total net assets $ , 61,313 g^ -
The accompanying notes are an intergral part of this statement. 23
Exhibit "H"
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31.2009
OPERATING REVENUES: Sales Less", cost of goods sold
The accompanying notes are an intergral part of this statement 24
ORLEANS PARISH CRIMINAL SHERIFFS OFFICE STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31. 2009
Exhibit "F
CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from inmates and customers Cash received for self-insurance premiums Cash paid to suppliers Cash paid to employees Cash paid for legal services, claims, and judgments
Net cash flows provided by (used in) operating activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTWTTIES: C^h paid to other fimds
Net cash flows used in noncapital financing activities
CASH FLOWS FROM INVESTING ACTIVmES: Interest and dividends received Investment proceeds Investments purchases
Net cash flows provided by investing activities
Net change in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equWalente, ending
RECONCILIATION OF OPERATING INCOME fLOSS^ TO NET CASH PROVIDED BY OPERATING ACTIVITTES: Operating income (loss)
Net cash provided by (used in) operating activities
Business-Type Activities
Enterprise Funds Non-Major
S 524,69S $
(5,739) (44,798)
474.161
(474.161)
(474,161)
-
Governmental Activities
Internal Service Funds
1,866,329 (12,349)
(1.866,329)
(12.349)
89,160 4,541.063
(4,617,874)
12,349
474.161 $ (12.349)
474.161 $ (12,349)
The accompanying notes are an intergral part of this statement. 25
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS DECEMBER 31.2009
Exhibit "J"
ASSETS: Cash and cash equivalents Interest receivable Other receivables Investments
Pension •Trust
36,072
3,455,478
Agency Funds
$ 1,072,409
36,198
Totel assets 3,491,550 1,108,607
LIABILITIES: Due to inmates and others Advance payment on contributions Interfund payables
Total liabilities
32,174
32,174
642,234
466.373
1,108,607
NET ASSETS: Net assets held in trust for pension benefits
Total net assets
3,459,376
3,459,376 $
The accompanying notes are an intergral part of this statement. 26
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS FOR THE YEAR ENDED DECEMBER 31.2009
The accompanying notes are an intergral part of this statement. 27
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS
DECEMBER 31.2009
INTRODUCTION
The Orleans Parish Criminal Sheriffs Office (the Office) was created by the Louisiana Constitution of 1921, Article 7, Section 89.
The Cruninal Sheriff is elected by qualified electors every four years. The Criminal Sheriff is in charge of the direction and supervision of all deputy criminal sheriffs who possess all of the powers and authority granted by law to the Sheriff
Among the powers of the Criminal Sheriff are the keeping of the jails, the preservation of the peace and the apprehension of disturbers of the peace and other pubUc offenders. The Criminal Sheriff is the executive officer of die Criminal District Courts and has the authority to serve citations, summons, subpoenas, notices and other process, and to execute writs, mandates, orders, and judgments directed to him by the Crimmal District Cotuts.
On July 28, 1989, die Orleans Parish Law Enforcement District (the District) was created by Act No. 20 of the 1989 Second Extraordinary Session of the Louisiana Legislature, which Act amended Chapter 26 of Title 33 of the Louisiaiia Revised Statutes. The Criminal Sheriff of the Parish of Orleans is the Chief Executive Officer of the District. The purpose of the District is to provide financmg for the Criminal Sheriff through the levying and collection of tax millages. The proceeds of these tax revenues may be used to fund the operations of the Criminal Sheriffs Office or ftind the repayment of debt.
Louisiana Revised Statute 33:1500 states there shall be one sheriff for the parish of Orieans, effective the first Monday in May 2010 following the election. The offices of the Orleans civil and criminal sheriffs will be consolidated and the separate offices shall be abolished. The sheriff shall have and shall exercise all powers, duties, and functions of the civil sheriff and the criminal sheriff of the parish of Orleans.
(1) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Office's financial statements are prepared in conformity with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local govemments through pronouncements (Statements and interpretations). Govemments are also reqmred to follow the proncfuncements of die Financial Accounting Standards Board (FASB) issued through November 30, 1989 (when applicable) that do not conflict with or contradict GASB pronouncements. Although the Office has the option to ^ply FASB pronoimcements issued after that date to its business-type activities and enterprise funds, die Office has chosen not to do so. The more significant accounting policies established in GAAP and used by the Office are discussed below.
The accompanying basic financial statements have been prepared in conformity with GASB Statement No. 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments, issued in June 1999.
28
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2009
(I) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -(CONTINUED)
Reporting Entity
ITie Orleans Parish Criminal Sheriffs Office is a "primary government'* as defined in GASB pronouncements since the Office is a government, created by State statute that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local govemments. In evaluating how to define the government, for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the reporting entity was made by applying criteria set forth in generally accepted accounting principles. The basic, but not the only, criteria for including a potential component unit within the reporting entity is the governing body's ability to exercise oversight responsibihty. The most significant manifestation of this ability is fmancial interdependency. Other manifestations of the ability to exercise oversight responsibility include, but are not limited to, the selection of governing authority, the designation of man^ement, the ability to significantly influence operations, and ^countability for fiscal matters. A second criterion used in evaluating potential component imits is the scope of public service. Application of this criterion involves considering whe&er the activity benefits the government and/or its citizens, or whether the activity is conducted within the geographic boundaries of the government and is generally available to its citiffins. A third criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financial reladonships, regardless of whether the government is ^ l e to exercise oversight TKponsibilities. Based upon the application of diese criteita, the Orleans Parish Law Enforcement District is included (blended) within the reporting entity.
The Office's basic financial statements include both government-wide (reporting the Office ^ a whole) and fiind financial statements (reporting the Office's major funds). Bodi the government-wide and fimd financial statements categorize primary activities as either governmental or business-type. T^e Office's inmate custody and related general administrative services are classified as govemmentel activities. The Office's inmate commissary is classified as a business-t>pe activity.
In the government-wide Statement of Net Assets (Exhibit A), both the governmental and business-type activities columns (a) are presented on a consolidated basis by column, and (b) are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The Office's net assets are reported in three parts - invested capital assets, net of related debt; resu-icted net assets; and unrestricted net assets. The Office first utilizes reshricted resources to finance qualifying activities.
The government-wide Statement of Activities (Exhibit B) reports bodi gross and net cost of each of the Office's fimctions (custody of inmates) and business-type activities (inmate commissary operations). The fimctions are also supported by general government revenues (mvestment mcome, etc.). The Statement of Activities reduces gross expenses by related program revenues, operating and capital grants. Program revenues must be directly associated with the fimction (custody of prisoners) or a busmess-type activity. Operatmg grants include operating-specific and discretionary grants, while die capital grant column reflects capital-specific grants.
29
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2009
(I) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -(CONTINUED)
The net costs (by fimction or business-type activity) are normally covered by general revenue (investment income, etc.).
The Office does not allocate indirect costs.
The effect of interfimd transactions has been removed from these statements.
This government-wide focus is more on the sustainability of die Office and the change in the Office's net assets residting fi-om current year's activities.
Separate financial statements are provided for fiduciary fimds; however, they are exchided fttim the government-wide financial statements.
Basic Financial Statements - Fund Financial Statements (FFS)
The financial transactions of the Office are reported in individual funds in the fimd financial statements. Each fimd is accounted for by providing a separate set of self-balancing accotmts that comprises its assets, liabiUties, reserves, fimd equity, revenues and expenditures/expenses. The various fimds are reported by generic classification whhin the financial statements.
The following fund types are used by the Office;
Govermnental Funds:
The focus of the governmental fimds* measurement (in the fimd statements) is upon determination of financial position and changes m financial position (sources, uses, and balances of financial resources) rather ttian net income. The following is a description of the major governmental funds of the Office;
General Fund
The General Fund is the primary operating fimd of the Office and it accounts for all financial resources, except those required to be accounted for in other fimds. The General Fund is available for any purpose provided it is expended or transferred in accordance with state and federal laws and according to Office policy.
Capital Projects Fund
The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities by the District that are not financed by the General Fund.
30
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2009
(1) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
-(CONTINUED^
Basic Financial Statements - Fund Financial Statements (FFSV-fcontinned)
Debt Service Fund
The Debt Service Fund is used to account for die accumulation of financial resource to be used for the periodic payment of principal and interest on general long'tenn debt including principal, interest, and relied costs of die District and the Office.
Proprietary Funds:
The focus of proprietaiy fund measurement is upon determmatioa of operating income, changes in net assets, financial position, and cash flows. The generally accepted accounting principles applic^Ie are those simibr to businesses in the private sector.
Proprietary fimds distinguish operating revenues and e)q)enses from non-operating items. Operating revenues and expenses generally result firom providing services and delivering goods in connection with a proprietary fimd's principal ongoing operations. Internal service fund (self-msurance fund) is used by the Office to account for financing of goods or services provuied by one department to other departments of the Office on a cost-reinJ)ursement basis.
The following is a description of the proprietary fimds of the Office:
Enterprise Funds
Enterprise funds are required to be used to account for activities for which a fee is charged to external users for goods or services and Uie activity (a) is financed with debt ttiat is solely secured by a pledge of net revenues, (b) has third party requirements that die cost of providing services, including capital costs, be recovered with fees and charges, or (c) establishes fees and charges based upon a pricing policy designed to recover similar costs.
Internal Service Funds
These funds are used to account for the financing of goods and services provided by an activity to other departments, funds or component units of the Office on a cost-reimbursement basis. Operating expenses of the internal service fimds mclude the costs of claims and judgments, related administrative expenses, and premiums for comrnercial policies. All revenues and expenses not meetmg this defuiitlon are reported as non-operating revenues and expenses.
Fiduciary Funds:
Fiduciary fimds are used to report assets held in a trustee or agency capacity for others and therefore are not available to support Office programs. The reporting focus is on net assets and changes in net assets and are reported using accounting principles similar to proprietary fimds.
31
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2009
(1) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -(CONTINUED)
Basic Financial Statements - Fund Financial Statements (FFS)-(continued)
The following is a description of the fiduciary fimds of the office:
Pension Funds
The pension trust fimd reports resources held in trust and the receipts, investments, and distribution of retirement contributions. The Office's pension trust fiind is lunited to the pension benefits offered through the defined contribution pension plan.
Agency Funds
The agency funds account for assets held by the Office as an agent for inmates and for deposits held pending court action. These funds are custodial in nature (assets equal HabiliUes) and do not involve measurement of results of operations. Consequently, the agency fiinds have no measurement focus, but use the modified accrual basis of accounting.
Basis of Accounting:
Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized in the accounts and reported in the fmancial statements. It relates to the timing of the measurements made regardless of the measurement focus applied.
Accrual
Both governmental and business-type activities in the government-wide fmancial statements and the proprietary and fiduciary fund financial statements are presented on the accraal basis of accounting. Revenues are recognized when earned and expenses are recognized when mcurred.
Modified Accrual
•file governmental fimds financial statements are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e., both measurable and available. "Available" means collectible within die cmrent period or within 60 days after year end. Expenditures are generally recognized under the modified accrual basis of accounting when the related liability is incurred. The exception to this general rule is that principal and mterest on general obligation long-term debt, if any, is recognized when due.
Revenues
Substantially all governmental fund revenues are accrued except for: deferred revenues related to Federal Emergency Management Agency (FEMA) grants which were not collected wifliin 60 days of year end, cash advances on reimbursement grants, and ad valorem taxes not collected within 60 days of year end.
32
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31. 2009
(1) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -(CONTINUED^
Revenues-(continued)
Investment income in proprietary funds, which fmance current operations, are reported as non-operating revenue.
The District's debt service fimd receives ad valorem/property taxes that have been levied on real property in Orleans Parish, Louisiana. The taxes are collected by the City of New Orleans and then remitted to the District. The taxes are levied by the City of New Orleans on the assessed value for all real propoty m Orleans Parish on January l" of the assessment year based upon the assessed value as of the prior August 15*. Taxes are due and payable on January 1*", the date on which an enforceable lien attaches on the property, and are delinquent on February 1*
The Office is authorized under state law to house inmates for Municipal, State, and Federal agencies. In accordance with contracts between the Office and these agencies, the Office bills die agencies a per diem amount for the housmg of inmates. Other revenues of the Office consist of inmate telephone charges, grants, release processing fees, restitution administration fees, and a portion of baU bond fees.
Expenditures
Expenditures are recognized when the related fiind Uability is incurred.
The Sheriffs primary expenditures include salaries and related benefits. Capital expenditures and purchases of various operating supplies are regarded as expendinires at die time purch^ed.
Other Financing Sources (Uses) ^
Transfers between fimds that are not expected to be repaid (and any otiier financing source/use) are accounted for as other financing sources (uses).
Deferred Revenues
Deferred revenues arise when resources are received by the Office before it has a legal claim to fliem, as when grant monies are received before the incurrence of qualifying expenditiu^s. Deferred revenue is also recorded for FEMA receivables and ad valorem taxes recorded but not received within sbrty days. In subsequent periods, when die Office has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and the revenue is recognized.
Budeets
The Office is required by state law to adopt annual budgets for the General Fund and Debt Service Fund. Each budget is presented on the modified accrual basis of accounting that is consistent with generally accepted accoimting principles.
33
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2009
(1) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Bud gets-(contin ued)
The following procedures are followed in establishing the budgetary data reflected in the financial statements:
1. Prior to December l" the Office prepares a budget for the next succeeding fiscal year beginning January l". The operating budget includes proposed expenditures and the means of financing them.
2. A public hearing is conducted, after proper official public notification, to obtam. taxpayer comment.
3. Prior to December 15* the budget is legally enacted through passage of a resolution by the Sheriff.
Cash and Cash Equivalents
Cash includes amounts in demand deposits, interest-bearing demand deposits, and time deposits. Cash equivalents include amounts in time deposits and diose investments with original maturities of 90 days or less. Under state law, the Office may deposit funds in demand deposits, interest-bearing demand deposits, or time deposite with st^e banks organized under Louisiana law or any other state of the United States, or under die laws of the United States.
Investments
Investments are lunited by Louisiana Revised Statute (R.S.) 33:2955 and die Office's investment policy. Louisiana Revised Statute (R.S.) 33:2955 authorizes die Office to invest in (I) direct obligations of the United States Treasury, die principal and interest of which are fully guaranteed by the federal government, (2) bonds, debentures, notes, or other evidence of indebtedness issued or guaranteed by federal agencies or U.S. government instiiunentalities, (3) direct security repurchase agreements of any federal book entry only securities, (4) tune certificates of deposits of state banks organized under die laws of Louisiana and national banks having their principal offices in die state of Louisiana, savings accounts or shares of savings and loan associations, (5) in mutual or trust fund institutions, which are registered with the Securities and Exchange Commission under die Securities Act of 1933 and the Investment Act of 1940, and which have underlymg investinents consisting solely of and limited to securities of the U.S. government or its agencies, or (6) guaranteed investment contracts issued by a bank, financial institution, insurance company or odier entity having one of the two highest short-term rating categories of eidier Standard & Poor's Corporation or Moody's Investors Service, provided diat no such investment may be made except in connection with a financial program approved by the State Bond Commission.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments are stated at fair value as determined by quoted market prices, except that short-term, highly Uquid investments tiiat have a remainmg maturity at die time of purchase of one year or less are shown at amortized cost.
34
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2009
(1) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -(CONTINUED)
Short-Term Interfund Receivablcs/Pavables
During the course of operations, numerous transactions occur between individual fimds for goods provided or services rendered. Th^e receivables and payables are classified as due frtim other funds or due to other funds on the balance sheet Short-term interfund loans are classified as interfimd receivables/payables. Interfimd receivables and payables between fimds withm governmental activities arc eliminated in the statement of net assets. Any residual balances outstanding between the governmental activities and business-type activities are reported m the govemment-wide financial statements as internal balances.
Inventories
. . J hiventory in the General Fund consists of medical and expendable supplies and food items held for consumption and is carried at weighted average cost. The weighted average cost is recorded as an expenditure at the time of consumption.
Prepaid Items
Payments made to vendors for services that will benefit poiods beyond December 31,2009 are recorded as prepaid items in both govemment-wide and fimd financial statements.
Capital Assets
Capital assets are capitalized at historical cost or estimated cost if historical cost is not available. Donated assets are recorded as capital assets at their estimated fau- market value at the date of donation. The Office maintains a threshold level of $5,000 or more for capitalizing capital assets.
Capital assets are recorded in the Statement of Net Assets, and depreciation is recorded in the Statement of Activities. Since surplus assets are sold for an immaterial amount when declared as no longer needed for public purposes, no salvage value is taken Into consideration for depreciation purposes. All capital assets, other than land, are depreciated using the straight-line method over the following usefid lives:
Estimated Description Lives
Buildings and improvements 40 years Maintenance equipment 7 years Office furniture and equipment 5 years Vehicles 5 years
Accrued Annual and Sick Leave
Vacation (annual leave) and sick pay (sick leave) are accrued when ramed. Accumulated annual leave and sick leave as of the end of the year is valued usmg employees* current rates of pay, and die liabiUty for these compensated absences is recorded as a long-term liability m the govenunent-wide financial statements. In the governmental funds financial statements, oidy the current portion is accrued.
35
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCL\L STATEMENTS (CONTINUED)
DECEMBER 31.2009
(1) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLIOES -^CONTINUED)
Accrued Annual and SickLeave-(cQntinued)
Annual leave is accumulated until the employee retires, resigns, or is termmated. Effective January 1, 2008, the maximum amount of annual leave that can be carried forward is 360 hours. Employees with more than 360 hours at January 1, 2008 can carry that amount forward, but cannot mcrease the amount carried forward.
Long-Term Debt and Bond Discounts/Premiums
In the goveaiiment-wide and proprietary fimd financial statements, outstanding debt is reported as a liability. Bond issuance costs and bond discounts or premiums are cqjitalized and amortized/accreted over the terms of the respective bonds using a method that approximates the effective interest method.
The governmental fimd financial statements recognize the proceeds of debt and premiums as other financmg sources of flie current period. Issuance costs are reported as expenditures.
Restricted Net Assets
For die govemment-wide statement of net assets, net assets are reported as restricted when constraints placed on net asset use are either:
1. Externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of other govemments; and/or
2. Inqjosed by law through constitutional provisions or enabling legislation.
Fund Equity
In die fiind financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Any designations of fund balance represent tentative management plans that are subject to cl^nge.
Interfund Transactions
Transactions that constitute rennbursements to a fund for expenditures initially made fi^m it diat are properly applicable to another fimd are recorded as expenditures in the reimbursing fimd and as reductions of expenditures in the fimd that is reimbursed. Nonrecurring or non-routine permanent transfers of equity are reported as residual equity fransfers. All other interfund transactions are reported as transfeis.
36
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31. 2009
(1) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES •(CONTINUED)
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America require management to make estimates and assunqjtions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported revenues, expenditures, and expenses diu-ing the reporting period. Actual results could differ fi-om those estimates.
(2) CASH AND CASH EOUIVALENTS
At December 31,2009, the Office has cash and cash equivalents (book balances) as follows:
Demand deposits $ 795,547
Interest-bearing demand deposits 21,831,656 Certificates of deposit 7,229,275 Other 24.494
Total % 29.880.972
Reconciliation to Government-Wide Statement of Net Assets: Per Government-Wide Statement of Net Assets;
Cash and cash equivalents S 28,808,563 Fiduciary Funds (not inclined in Government-Wide Financial Statements):
Agency Funds 1.072.409
Total S 29.880,972
These deposits are stated at cost, which approxunates market. Custodial credit risk is the rM that in die event of a bank feilure, die government's deposits may not be returned to it. Under state law, titese deposits (or die resulting bank balances) must be secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank. The market value of the plei^ed securhies plus the federal deposit insurance must at alt times equal die amount on deposit with the fiscal agent These securities are held in the name of Uie pledging fiscal agent bank m a holding or custodial bank that is mutually acceptable to both parties.
At December 31, 2009, die carrying amount of the Office's demand deposits and certificates of deposits were $29,856,478, and the bank balances were $16,027,496. Of the bank balances, $1,000,000 was covered by federal depository insurance, and $26,261,712 was covered by pledged securities held by the custodial bank in the name of the fiscal agent bank.
Even though the pledged securities are considered uncollateralized under the provisions of GASB Statement 3, Louisiana R.S. 39:1229 imposes a statutory requirement on the custodial bank to advertise and sell the pledged securities within 10 days of being notified by the Office diat die fiscal agent has failed to 1 ^ deposited fimds upon demand.
37
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2009
(3) INVESTMENTS
As of December 31,2009, die Office's mvestment balances were as follows:
U.S. Treasury Obligations Federal Agency Obligations Money Market Funds Interest receivable
Total
Reconciliation to Government-Wide Statement of Net Assets: Investments mcludlng accrued interest
Per Govemraent-Wide Statement of Net Assets Fiduciary Funds (not included in Government-Wide
Interest rate risk is the risk that changes in market interest rates will adversely affect the fiiir value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The Office has an investment policy that limits investment maturities as a means of managing its exposure to feir vahie losses arising from increasing interest rates.
As of December 31, 2009, die Office had the following investment types and mahorities for investments subject to mterest rate risk.
U.S. Treasury Obligations Federal Agency Obhgations
Remaining Maturity (in Years) Fair Value
$ 1,048,461 25,193,293
S 26,241,754
Less Than One $ 404,397
23,133,492
$ 23.537.889
$
$
1-5 644,064
2,059,801
2,703,865
Credit Risk
As of DecembCT 31, 2009, die Office's investments in Federal Agency Obligations were rated AAA by Moody's.
Concentration of Credit Risk
Excluding investments issued or guaranteed by the U.S. Government, the Office has no mvestments in any single organization that represent five perceiit or more of the Office's investinents.
38
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2009
(4) INTERGOVERNMENTAL RECEIVABLES
The Office is audiorized under state law to house inmates for Municipal, State, and Federal agencies. In accordance with contracts between the Office and diese agencies, the Office bills the agencies a per diem amount for the housing of inmates.
Receivables at December 31,2009 are as follows:
Custody of prisoners: Cify of New Orleans S 4,442,371 Federal Agencies 327,891 State of Louisiana 867,552 Parishes 132.106
5,769,920 Other: FEMA Grants 3.826,948 LCLE and odier grants 166.743
The Office provide an allowance for uncollectible amounts that is based upon historical collection mformation, existing economic conditions, and other relevant information.
(5) INTERFUND RECEIVABLES. PAYABLES AND TRANSFERS
The composition of mterfund balances at December 31,2009 is as follows:
Receivable Fund
General Fund
General Fund
Internal Service Fund
Debt Service Funds
Capital Projects Fund
Non-major Governmental Funds
Non-major Enterprise Funds
Payable Fund
Agency Funds $
Non - Major Governmental
General Fund
General Fund
General Fund
General Fund
General Fund _
J
Amount
466,372
480
4,320,000
1,309,629
2,507,793
49,546
61313
8,715.133
All of the remaming balances result from the time lag between die dates tiiat reimbursable expenditures occur, interfimd goods and services are provided, and payments between funds are made. Periodically, the Commissary Fund (a non-major Enterprise Fund) ti-ansfers its operating profits to the General Fund.
39
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2009
(5) INTERFUND RECEIVABLES. PAYABLES AND TRANSFERS-^CONTINUED>
A summary of interfimd transfers for the year ended December 31,2009 is as follows:
Transfers In;
Transfers Out: General Fund Self-Insurance Non-major Enterprise Funds
s
£
General Fund
2,099,210 474,161
2.573,371
$
$
Debt Service Fund
763,900
763,900
$
$
Total
763,900 2,099^10
474,161
3337,271
(6) PREPAID EXPENSES
Payments made prior to December 31, 2009 diat will benefit periods beyond Decemb^ 31, 2009 are recorded as prepaid expenses. Prepaid expenses at December 31,2009 consist of prepaid pension expense of$32,174.
(7) CAPITAL ASSETS
Capital assets and depreciation activity as of and for the year ended December 31,2009 are as follows:
December 31, 2008
Capital assets not being depreciated: Land $ Construction in progress
Total non-depreciable assets
Capital assets being depreciated: Buildings and improvements Operating equipment Office furniture and equipment Vehicles
Total depreciable assets
Totals S
5,907,477 5,948.965
11,856,442
58,613,681 2,534,704 4,413,203 7,721,507
73.283,095
85,139.537
Addition
S 124,070 12,563.023
12,687,101
296,092 368,194 90,594
394,302
1,149,182
£ 13,836,275
DispcKals
$ - $
(338,529)
(338,529)
$ (338,529) $
Reclass
(5,555,7?22_.
(5,555,792)
5.555,792
5,555,792
December 31, 2009
$
$
6,031,547 12,956,196
18,987,743
64,465,565 2,902,898 4,503,797 7,777,280
79,649,540
98,637,283
40
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31. 2009
(7) CAPITAL ASSETS-fCONTINUED^
December 31, 2008
Less accumulated depreciation: Buildings and improvements $ Operating equipment Office fiimiture and equipment Vehicles Total accumulated
Depreciation expense in the amount of 4,962,694 was charged to custody of inmates.
The Office has active construction projects as of December 31, 2009 totahng $12,956,196. The major continuing project is die kitchen/warehouse and central plant. The remaining commitinents on the active construction projects at December 31,2009 total approximately $294,000.
(8) PENSION PLANS
The Orleans Parish Crimmal Sheriffs Office provides pension benefits fiar substantially all of Its employees through a defined contribution pension plan, a defined benefit pension plan, and a deferred compensation plan. All eligible employees hh^d before July 1, 1997 were given the option to remain in the defined contribution pension plan or participate m a new defined benefit plan. All fidl-time eligible employees hired on July 1, 1997 or thereafter, are required to participate in the new defined benefit plan. Part-time employees are required to participate in die defined contribution pension plan at their date of employment. Employee participation in the deferred compensation plan is optional.
(a) Defined Contribution Pension Plan
In the defined contribution plan, benefits depend solely on amounts contributed to the Plan plus investment earnings. The Plan requires that botii the employees and the Office contribute to the plan.
The Office contributes 9.8% of each participating employee's wages for those who are employed on the last day of the year or w^o have withdrawn during the year due to a minimum required distribution, retirement, disability or death. Participating employees are required to contribute 9.8% of their wages. Employees may also make additional voluntary contributions to the Plan. Such additional amounts are not matched wholly or in part by the Office. The maximum contribution an employee amy make, which consists of both required and voluntary amounts, is 19.8% of the employee's wages. Employees become partially vested in the Office's contributions (and earnings allocated to die employee's account) after completmg four years of service.
41
! ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE , NOTES TO FINANCIAL STATEMENTS (CONTINUED) 1 DECEMBER 31. 2009
(8) PENSION PLANS-f CONTINUED)
(a) Defined Contribution Pension Plan-fcontinued)
The vestmg percentage increases annually until the employee completes eight years of service at which time they become fully vested.
Forfeitures of unvested portions are available to the Office to reduce fiiture contributions.
The Office made no contributions ui 2009. Forfeitures of $101,936 m 2009 were credited to the benefit of the employer for the year ended December 31,2009. The employees contributed to the Plan through payroll withholdmgs a total of $128,374 for the year ended December 31, 2009, which represents both the required and additional voluntary contributions.
(b) Defined Benefit Pension Plan
Effective July I, 1997, the Office contributes to die Louisiana Sheriffs Pension & Relief Fund (die "System"), a cost-sharing multiple-employer defined benefit public employee retirement system (PERS). The System is a statewide public rethement system for die benefit of sheriffe and theh staffs, which is administered and controlled by a separate board of trustees. The System was estabUshed and provided for within LSA-RS 11:2171 of die Louisiana Revised Statutes.
Confaibutions of participating sheriffs, togedier with shared local and state revenues, are pooled witiim the System to fimd accrued benefits. Both employer and employee contribution rates are approved by the Louisiana Legislature. The System provides retirement and disability benefits, annual cost of living adjustments, and deadi benefits to plan members and beneficiaries. The System issues a publicly available financial report that includes financial statements and required supplementary information for the System. That report may be obtained by writmg to Sheriffs Pension & ReUef Fund, P.O. Box 3163, Monroe, Louisiana 71210-3163 or by calling (318) 362-3I9I.
In addition to ad valorem and insurance premium taxes that are remitted to the System (which constitute die major funding of the System), plan members are currently required by state statute to contribute 10% of gross salary. The Sheriff is requhed to con&ibute at an actuarially determm«l rate. The current employer's rate is 11% of annual covered payroll.
The confributions for the year ended December 31,2009 were as follows:
Percent of Amount Covered Paymll
I Employee $ 2,909,969 10% Employer $ 3,200,965 11%
The Office's confributions to the System for die years ended December 31, 2008,2007, and 2006 were $3,192,321, $2,889,372, and $2,078,617, respectively, which is equal to die required contribution for each year.
42
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2009
(8) PENSION PLANS-(CONTINUED)
(c) Deferred Compensation Plan
Effective September 1.2001, die Office adopted a deferred compensation plan administered by the Louisiana Deferred Compensation Commission. The Louisiana l^ibllc Employees Deferred Compensation Plan (the "Plan") was established pursuant to IRC Section 457 and Louisiana R.S. 43:1301-1308. For 2009 the Plan allowed employees to contribute up to die lesser of $15,500 for employees 49 years of age or younger; $20,500 for employees 50 years of age or older ($31,000 for those ehgible for catch-up) or 100% of theh salary. The Office matches contributions up to the lesser of $15,000 (employees 49 yeara of age or younger) or $20,000 (employees 50 years of age or older) or $30,000 for those eligible for catch-up or 9.8% of each pailicipant's salary. Employees contributed througji payroll withholdings a total of $761,250 and the Office made matching contributions of $713,022 for the year ended December 31,2009.
(9) LONG-TERM DEBT OBLIGATIONS
The following is a summary of the long-term obligation ti:ansactions for the year ended December 31, 2009:
General Obligation Refunding Bonds (Series 1997): $25,255,000 originally issued with interest rates rangmg from 3.85% to 4.95%, matining May I, 1998 tiu-ough May 1,2010, secured by collections of ad valorem taxes.
General Obligation Bonds (Series 2001); $27,000,000 originally issued with mterest rates ranging from 3.75% to 5.00%, maturing March I, 2002 through March 1,2016, secured by collections of ad valorem taxes.
General Obligation Bonds (Series 2008): $10,000,000 origmally issued with interest rates rangmg from 3.55% to 4.05%, maturing September 1,2009 through September 1,2018, secured by collections of ad valorem taxes.
General Obligation Bonds (Series 2009): $10,000,000 originally issued with interest rates ranging from 3.35% to 3.80%, maturing September 1,2010 through September 1,2018. secured by collections of ad valorem taxes.
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2009
(9) LONG-TERM DEBT OBLIGATIONS-fCONTINUED)
Balance at December 31,
2008 Additions Reductions
Balance at December 31.
2009
Due Withm
One Year
Special Community Disaster Loan: $18,029,067 originally issued with mterest rate of 2.69%, maturing m 2010, secured by revenues of the Office. 18,029,067
Cooperative Endeavor Agreement with State of Louisiana: $17,256,120 originally issued witii an interest rate of 4.64% (interest payable begiraimg January, 2012; principal payable beginning July, 2012), maturing July 15, 2026, secured by revenues of the Office.
Certificates of Indebtedness, (Series 2002): $6,000,000 originally issued with an interest rate of 5%, maturmg January 1,2004 through January I, 2012, secured by a pledge and dedication of tiie excess of aimual revenues of die Office. 2,755.000
18,029,067 18,029,067
11,969,904 5,286,216 17,256,120 .
(640.000) 2.115.000 670,000
Other liabilities: Claims and judgments Accrued annual and sick leave Bond premium, net of.
accumulated amortization Bond discoimt, net of
accumulated accretion
58,768,971
5,644.700 1,860.244
20,282
(4.016)
1536,216
601,168 1,670,675
-
-
(5,830,000)
(1,923,079) (1,733,366)
(5.058)
3,200
68,225,187
4,322,789 1,797,553
15,224
(816)
24,959,067
-15,000
4,413
-
$17.558,059 $f9.488.303^ ^ 74.359.937 ^ 2 ^ 1 S A m
44
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO F1NANCL\L STATEMENTS (CONTINUED)
DECEMBERS!. 2009
(9) LONG-TERM DEBT OBLIGATlONS-fCONTINUEDt
Following is a summary of bond and note prmcipal and interest expense:
Interest expense on long-term debt for the year ended December 31,2009 was $ 1,983,024.
During December 2005, the Office entered into a long-term agreement with the Federal Emergency Management Agency under tiie Special Purpose Disaster Loan (SPDL) Act of 2005, as a result of the major disaster declaration of Au^ist 29, 2005 for Hurricane Katrina. The Office has drawn down the total $18,029,067 available funds as of December 31,2009. The loan is for a term of five years, which may be extended, at an interest rate of 2.69%. Inchided in accrued interest is $1,824,539 of interest related the Special Disaster Loan. The total term of the loan imder Section 417(a) of the Stafford Act normally may not exceed ten years, but in extenuating circumstances involving financial hardship, the local government may request an additional period b^ond ten years to repay the indebtedness. Simple interest accrues from the date of each disbursement. Payments of principal and interest are deferred until the end of die five year period plus extensions, if any. In 2007 Congress authorized FEMA to forgive all or part of the Special SPDL's. The Office has applied for loan forgiveness and a determination has not yet been made. The Office intends to ask for die 5-year extension of die loan provided for in the Stafford Act
In July 2006, the Office and the State of Louisiana (the State) entered into a Cooperative Endeavor A^ement whereby die State agreed to lead up to $17,256,120 fi-om State fiinds on deposit in the Debt Service Assistance Fund, authorized by the Gulf Opportunity Zone Act of 2005 and Act 41 of die First Extraordinary Session of the Louisiana Legislamre of 2006, to ^sist in payment of debt service requirements from 2006 dirough 2009 due to disruption of tax bases and revenue streams caused by Hurricanes Katrina and Rita. No principal or interest is payable during the mitial five year period of the loan. After the expiration of the initial five year period, die loan shall bear interest at a fixed rate of 4.64%. Principal payments on the bonds begin in July 2012 and the loan will mature m July 2026. Interest is payable semi-annualiy on January 15 and July 15 beginning January 2012. TTie loan may be prepaid witiiout penalty or premium. The Office has tiie right to request one extension of its obligation to begin payments under tiie loan not to exceed five years. The Office had drawn on the loan in 2009 for $5,286,216, for principal and interest payments.
On February 15, 2001, tiie District issued $27,000,000 of General Obligation Bonds (Series 2001), for repairmg, renovating, unproving, and constructing feciUties for the Orleans Parish Crimmal Sheriffs Office, District Attorney, C:riminal Disti-ict Courts, Clerk of Criminal District Court, Juvenile Court, and Municipal and Traffic Court. One half; or $13.5 million, was allocated to governmental agencies odier tiian the Office.
45
(9)
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCL\L STATEMENTS (CONTINUED)
DECEMBER 31.2009
LONG-TERM DEBT OBLIGATIONS-fCONTINUED^
Tlie status of the funds allocated to tiie otiier agencies is as follows:
Agency
Orleans Parish District Attorney Orleans Parish Criminal District Courts Orieans Parish Clerk of Criminal
District Coints Orleans Parish Juvenile Court Orleans Parish Municipal and Traffic Court
Origmal Balance
$ 2,500,000 8,500.000
800,000 1,000,000
700.000
Transferred to otiier Aeencies
$ 1.173.357 1,174,975
205347 5,085
534.111
Estimated Interest Earned
$ 385,237 1.309,807
123,276 154,095 107.866
Remaining Balance at
December 31, 2009
$ 1,711,880 8.634,832
717,929 1,149,010
273.755
Resti-icted for intergovernmental transfers $ 13,500,000 ^ 3.092.875
On October 4, 2008, the voters of the Orleans Parish authorized the District to issue general obligation bonds not exceeding $63,225,000 for constructing, improving, renovating and repairing jails and other facilities for the Crimmal Sheriff ($40,890,000), District Attorney ($3,290,000), Clerk of Criminal District Court ($2,825,000), Juvenile Court ($3,720,000), Municipal and Traffic Court ($7,500,000), and New Orleans Foraisic Center ($5,000,0W)). The 20-year bonds are payable from ad valorem taxes. There have been two emissions of tiie bonds; $10,000,000 was issued December 1,2008 and a second $10,000,000 was issued March 1,2009.
(10) RISK MANAGEMENT
The Orieans Parish Criminal Sheriffs Office manages its risks internally and sete aside assets for claim settiements in its internal service fund, die Self Insurance Fund. The fiind services claims for various risks of loss to which the Office is exposed, including general liabiUty. property and casualty, and environmental. The Office has limited commercial msurance on some heavy equipment and buses. The Office also has physical damage policies for selected vehicles. The Office has some flood and property policies. The City of New Orleans provides workmen's compensation coverage.
Self Insurance Fund liabilities are reported when it is probable that a loss has occurred and tiie amount of tiiat loss can be reasondsly estimated. Claims liabilities depend on such complex fectors as inflation, changes in legal doctrines, and damage awards. Claims liabilities are reevaluated periodically to take into consideration recentiy setded claims, the frequency of claims, and otiier economic and social factors. The estimate for claims liability mcludes an esthnate for incurred but not reported (IBNR) liabihties and also includes amounts for selected incremental claun adjustment expenses related to specific claims and other claim adjustment expenses regardless of whetiier allocated to specific claims. Attorney fees are recorded as incurred and are not included in tiie liability. Estimated recoveries, for example, from salvage or subrogation,'are anotiier component of tiie claims liability estimate.
46
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2009
(10) RISK MANAGEMENT-(CONTINUED>
TTie Orleans Parish Criminal Sheriffs Office is a defendant in various lawsuits pertaining to material matters. As of December 31,2009, on the advice of le^l counsel, $4,322,789 has been accrued m the Self Insurance Fund to ftmd outstandmg claims. Changes in the balances of claims liabilities during the last two yeai^ were as follows;
Fiscal Year 2008 2009
Liability at, Beeinnins
$ 15310,000 $ 5.644.700
Current-Year Claunsand Changes in Estimates
$ 2,940,650 $ 601,168
Claim Payments
S 12,605,950 $ 1,923,079
Liability at End
$ 5,644,700 $ 4,322.789
At December 31,2009, die Self Insurance Fund held $4,322,789 in assets designated for payment of these and fiiture claims.
(11) ON-BEHALF PAYMENTS
The accompanying basic financial statements do not include certain portions of tiie Office's expenses paid directiy by the City of New Orleans. These expenses include certain building space, utilities, office supplies, gasolme and certam major repairs among others.
Hospitalization premiums, unemployment benefits, and workers' compensation premiums paid by the City of New Orleans on behalf of the Office toteled $5343.490 and are included in die accompanymg financial statements as revenues and expenditures in the General Fund. The recorded hospitalization mcludes the post employment benefit of health insinance to retirees who either have thirty years of service; are a member of the Louisiana Sheriff s Pension&ReliefFundandretire with 20 years ofservice at 50 years of age or older; or are a member of the Orleans Parish Criminal Sheriffs Employees Retirement Plan witii eight years ofservice and 55 years of age or older.
(12) COMPENSATION OF SHERIFF
In accordance with Louisiana Revised Statute 33:1421, tiie Sheriff of Orleans Parish was paid tiie foliowmg compensation for preserving the peace, arresting public offendere, and keeping of tiie jail. He is also the executive officer of the District.
Salary $ 143,262 Expense allowance $ 14,326
(13) ECONOMIC DEPENDENCY
The Office derives a material part of its revenues from per diem charges for tiie housing of federal, state, and municipal prisoners. These revenues are received from the City of New Orleans, the State of Louisiana Department of Corrections and various Federal agencies. For die year ended December 31,2009. revenues from tiiese sources totaled $35,782,379.
47
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2009
(14) CONTINGENCIES
Litigation
The Office is a defendant m various lawsuits. As discussed in note 10, the Office is self-insured with respect to claims. The Office and its attorneys have reviewed these clauns and lawsuits in order to evaluate die likelihood of an unfavorable outcome and to provide as estimate of its exposure to potential loss. This estimate could change in the near term due to the litigation envhonment.
Intergovenmiental Assistance
The Office participates in certain local, state and federal financial assistance programs. Amounts received from grantor agencies are subject to audit and adjustment by grantor agencies, principally tiie federal government. Any disallowed claims, including amounts aheady collected, may constitute a liability. The amount, if any of expenditures fliat may be disallowed by the grantor cannot be determined at this time, although the Office expects the amount, if any, to be immaterial.
The Office of Inspector General - OIG has issued a report questioning $2,472,000 of costs relating to certain grants from 2005 through 2009 related to hurricane Kaftina. No amounts have been accrued as tiie ultimate outcome of tiiis matter is undetermined at this time. The Office is not in agreement witii the OIG*s findings.
(15) NATURAL DISASTER
On August 29, 2005, Hurricane Katrina, a major hurricane, struck southeastern Louisiana and tiie Mississippi and Alabama Gulf Coast. The Office incurred significant hurricane-related expenses and property losses. As of December 31, 2009, tfie Office has received reimbursements from the Federal Emergency Management Association (FEMA) of $56,822,684.
Included in accounts receivable at December 31, 2009 is $1,369,680 of reimbursements from FEMA received witiiin 60 days after December 31, 2009 and $2,457,268 of additional accruals related to FEMA. Unobligated FEMA grants, which are awaiting fmal approval and are expected to be reunbursed for $669,227 of 2009 recorded expenditin^s, are not recorded in accounts receivable. Advances and receipts for unrecorded expenses of $4,455,971 are recorded as a payable to die State of Louisiana, the pass through agency for FEMA fiinds. No additional insurance proceeds are expected to be recovered. FEMA obligated grants total $205,135,833 at December 31,2009.
(16) GASB STATEMENT NO. 45
In June 2004 the Governmental Accountmg Standards Board (GASB) issued Statement No. 45 "Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions", which addresses the accounting and reporting requfrements for flie costs and habilities associated wifli such benefits. This Statement improves the relevance and useftihiess of fmancial reporting by (a) requiring systematic, accrual-basis measurement and recognition of otiier post employment benefits (OPEB) cost (expense) over a period tiiat approximates employees' years ofservice and (b) providing information about actuarial accrued liabilities associated witii OPEB and whetiier and to what extent progi-ess is hemg made m fimding the plan
48
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31. 2009
(16) GASB STATEMENT NO. 4S-fcontinued^
This Statement is effective for periods be^nnlng after December 15,2007 for phase 2 govemments (those with total annual revenues grater than $10 million, but less tiian $100 milUon.) The City of New Orleans is currently responsible for all OPEB's related to the Office. The benefits are paid directiy by the City of New Orleans. These payments are included in the on-behalf payments made to the Office by the City of New Orleans. For the year ending December 31, 2009, the total on-behalf payments made were $5,343,490.
(17) SUBSEQUENT EVENTS
On January 14, 2010, the Office entered into a contract for $76,780,000 for die constiiiction of the new kitchen, warehouse and central plant. The contract will be funded prunarily through FEMA proceeds and the remainder through bond funds.
49
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MANAGEMENT'S DISCUSSION AND ANALYSIS
Schedule "A-I"
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE SCHEDULE OF REVENUES, EXPENDfTURES, AND CliANGES IN FUND BALANCES -
BUDGET AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED DECEMBER 31. 2QQ9
REVENUES: Custody of prisoners:
City of New Orieans charges State of Louisiana Department of Corrections charges Fcdcial charges Other charges
On-behalf payments Other income State supplemental pay Federal grants
Totd revenues
EXPENDITURES: Cenu-al services Court services Security ^rvices Administrative services Records and booking InniEUe services Grants and special programs Plant and maintenance and coital outlays
Total expenditures
Deficiency of revenues over expenditures
OTHER FINANCING SOURCES fUSESh '
Proceeds fi-om sale of assets Proceeds from Special Community Disaster Ujan Transfers in
Transfers (out)
Total other financing sources (uses)
Net change in fund balance
FUND BALANCES. BEGINNING
FUND BALANCES. ENDING
Variance With Budgeted Amounts
Original
$ 24,500,000 $ 4,600,000 5,885,000
-3,500,000 4,521,000 2,480,000
37,850,000
Final
26,700,000 $ 6.900,000 1,950.000
183,000 4,000,000 3.872,400 2,545,000
11,000,000
Actual Amounts
25,736,149 6,910,823 1,968,630
166,777 5.343,490 3,808,044 2,54L894
12,202.798
Final Budget -Over (Under)
$ 36,149 10.823 18,630
(16,223) 1,343,490
(64,356) (3,106)
1,202,798
5,000,000 440,000
(763,900)
4,676.100
(6,027,900)
6,067,125
83,336,000 57.150.400 59,678,605 2,528.205
5,610,235 4,177,714
19,133,061 7.112,715 4,310,805
12,034,169 347,190
41314,111
4,615,932 4,070,009
16,656.388 4,997,664 4,484,043
12,678,870 190.195
14,782,174
3,284,725 3,974,851
19,026,874 2,983,188 6.296.249
11,870,684 321,724
17,649.704
(1,331,207) (95,158)
2.370,486 (2,014,476) 1.812,206 (808,186) 131,529
2,867.530
94,040,000 62.475.275 65.407.999
12.600
2,609,210 (763.900)
1,857,910
(3,466.965)
4,413.436
2,932,724
(10.704,000) (5,324.875) (5.729.394)
3,599
2,573.371 (763,900)
1.813.070
(3,916.324)
4,413,436
(404,519)
(9,001)
(35,839)
(44,840)
(449,359)
1 ^ 39,225 .422012 $ im^m
See Auditor's Report. 50
Schedule "A-2"
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - DEBT SERVICE FUND FOR THE YEAR ENDED DECEMBER 31. 2009
Budgeted Amounts Original Final
Actual Amounts
Variance With Fmal Budget -Over (Under)
REVENUES: Investment income Ad valorem tax revenue
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE COMBINING STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUNDS FOR THE YEAR ENDED DECEMBER 31. 2009
Scholarship Elderiy Victims Benevolent Fund Fund Fund Total
REVENUES: Investment income Other income
Total revenues
EXPENDITURES: Miscellaneous
Total expenditures _^
Excess (deficiency) of revenues over expenditures
FUND BALANCES, BEGINNING 11,645
FUND BALANCES, ENDING £ 11.645
$
L.
9,661 $ -
9.661
559
559
9,102
728,651
737.753 S
19 200
219
1,629
1,629
(1.410)
7.484
6 07^
$
s=
9,680 200
9,880
2,188
2,188
7,692
747.780
755.472
See Auditor's Report. 53
Schedule "B-3"
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE COMBINING STATEMENT OF NET ASSETS
NON-MAJOR ENTERPRISE FUNDS DECEMBER 31.2009
CURRENT ASSETS: Interfund receivable
Total current assets
ASSETS
Commissary
Total Non-Major Community Enterprise
Service Funds Funds
59.955 $ 1,358 $ 61,313 59.955 _L1S8 61.313
NET ASSETS
NET ASSETS: Unrestricted 59,955 1,358 61,313
Total net assets t 59.955 1 XM. £ a m
See Auditor's Report 54
ScheduIe"B-4"
ORLEANS PARISH CRIMINAL SHERIFFS OFFICE COMBINING STATEMENT OF REVENUES. EXPENSES, AND CHANGES IN FUND NET ASSETS
NON-MAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED DECEMBER 31.2009
OPERATING REVENUES: Sales Less: cost of goods sold
Gross profit
Total operating revenues
OPERATING EXPENSES:
Personnel costs
Total operating expenses
Operating income
TRANSFERS:
Transfers out
Change in net assets
NET ASSETS, BEGINNING
NET ASSETS. ENDING
Ckjmmissaiy
$ 524,698 (5,739)
518,959
518,959
44,798
44,798
474,161
(474,161)
Community Service Funds
$
-
Total Non-Major Enterprise
Funds
$ 524.698 (5,739)
518.959
518.959
44,798
44,798
474,161
(474,161)
59,955 1.358 61,313
See Auditor's Report 55
Schedule "B-5"
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE COMBINING STATBMEKr OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS FOR THE YEAR ENDHD DECEMBER 31.20Q9
Community Total Non-Major Service Enterprises
Commissary Fund Funds
CASH FLOWS FROM OPERATING ACTIVITIES: Cash received firom inmates and customers S 524,698 $ Ca.sh paid to suppliers (5,739) Cash paid to employees (44,79}})
Net casli flows provided by operating activities 474,161
f:ASH FLOWS FROM NONCAFITAL FINANCING ACTIVITIES: Cash paid lo other funds (474.161)
Net cash flows used in noncapital financing activhies , (474,161)
Net change in cash and cash equivalents
Cash and cash equivalents, beginning :_
Cash and cash equivalents, ending S
RECONCH^UTION OF OPERATING INCOME TO NF.T CASH FROVIPEP SY OPERA nNG ACTIvm£.Si Operating income $ 474,161 $_
Net cash provided by operating acdvities $ 474,161 $
s 524.698 (5.739)
f44.798^
474.161
(474.161)
(474.161)
-
$
S
s
474,161
474, !61
Sec Auditor's Report 56
ScheduIe"B-6"
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE COMBINING STATEMENT OF FIDUCIARY NET ASSETS
AGENCY FUNDS DECEMBER 31.2009
ASSETS: Cash Other receivables
Total assets
LIABILITIES: Due to inmates and others Interfund payable
Total liabilities 20,457,234 13.444,459 11,474,239
FUND BALANCES: Reserved for:
Inventory Prepaid expenses Encumbrances
Unreserved: Designated for retirement of Special Community Disaster Loan
Undesignated
1,034,968 32,174
733,179
(1,303,209)
1.051,690 134,110
2,483.000
744.636
882,812 276.728
7,355,455
8,000.000 7,000.818
Total fund balance 497.112 4,413,436 23,515.813
Total liabilities and fiind balances ^-09' 4 346 17 857.895 ^ 34.990052
See Auditor's Report 59
Schedule "C-3'
ORLEANS PARISH CRIMINAL SHERIFFS OFFICE COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IK FUND BALANCES - GENERAL FUND
FOR THF. YEAR? gNPP." PECEMBER 31.2009.2008, AND 2007
2009 2008 2007
REVENUES: Custody of inmates:
City of New Orleans chtffges State of Louisiana Dq)artment of Correctioiis charges Fedo-al charges Other charges
Investmcnl income On-bdialf payments Other income SifUe supplemenuil pay Federal grants Rcstitution/adniinistratJon Release proccsiiing fees
Total revenues
EXPENDITURES: CMiliat services Court services Security services Administrative services Records and booking Inmate services Grants and special programs Plant and maintenance Miscellaneous Debt retiiemcBt Interest paymenu Capital outlays
Total expenditures
Deficiency of revenues over expenditures
OTHER FINANCING SOURCES fUSES). INCLUDING TRANSFERS Proceeds from insurance Proceeds from sale of assets Transfers in Transfers (out)
Total other financing sources (uses), including transfcjs
ORLEANS PARISH CRIMINAL SHERIFFS OFFICE SCHEDULE OF EXPENDITURES OF FEDERAL FINANCIAL AWARDS
FOR THE YEAR ENDED DFrFMBER 31. 2009
Funding Agoicies/ Fropam Title
Federal CFDA
Number Grant
Number Disbursements/ Expenditures
VS. Department of Justice
Pass-Through Awards:
Office of Justice Pro^anis, Bureau of Justice Assistance Passed through Louisiana Commission on Law Enforcement and Administration of Criminal Justice
Recovery Act - Edward Byrne Memorial Jnsiicc Assistance Grant -Correctional Contraband Control
Byrne Formula Grant Prt^am Street Reduction of Violent Crime
Edward Byrne Memorial Justice Assistance Grant - Crime Activity Patrol
PaKcd through City of New Orleans Ed\vard Byrne Memorial Justice Assistance Grant
Office of Community Oriented Policing Services Passed dirough New Orleans Police and Justice Foundation
Disaster Recovery
OfSce of Justice Programs. Ofiice of Juvenile Justice and Delinquency Prevention
Passed ttraugh Louisiana Commission on Law Enforcement and Administration of Criminal Justice
Deliquency Prevention Program Deliquency Prevoition Pro-am
Juvenile Account^ility Incentive Block Grants (JAIBG) Curfew Center Renovation Court Diversion Curfew Center
Total U.S. Department of Justice
( j ^ . Department of ffometand Scctiritv
Pass-Throurfi Awards:
Louisiana Office of Homeland Security and Emergency Preparedness Disaster Grants - Public Assistance
Total U.S. Dq)artment of Homeland Security
U.S. Dcparjmenl of Hcnlth and Human Services
Pass-Throufi
State of Louisiana, Department of Health and Hospitals Office of Public Health
HIV PrevKition Activities - HeaWi Department Based •
Tot^ U.S. Dqiarlment of Healdi and Human Services
Total Federal Awards
16.803
16.738
16.738
B82-8-099
B06-9-006
B07-9-005
16.738 2009-DJ-BX-0980
16.710
97.036
93.940
Y07-8-005
FEMA
200-20003-02367
50,782
6,650
76.567
63,567
69,981
16.548 16.548
16.523 16.523 16.523
W05-9-002 W05-9-001
A05-8-040 A06-8-033 A07-8-022
34,604 7,684
56,793 43.48S 4,275
416388
11321.862 (M)
11,321,862
14,264
14,264
$ 11.752.514
Sec .Auditor's Report, 61
(M) - Represents a "Major pro-am under OMB Circuit A-133
Notes to the Schedule of E»pgndttures of Federal Awards
Notel This schedule of expenditures of fedo-al awards includes the federal grant activity of the Orieans Parish Criminal Sheriffs Office and is presented on the accrual basis of accounting. The inform&ti(»i in this schedule is presented in accottlance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profil Oi^anizations, Thcrerore. some amounts presented in this schedule may differ fram amounts presented in, or used in preparation of, tlic basic financial statements.
Note 2 The Office received a Special Community Disaster Loan (tlie "Ixan") from the federal goveniinent in 2005 and 2006 in the total amount of $18,029,067. The terms of the Loan call for interest to accrue at 2.69% annually to be repaid with the principal when the Loan becomes due in 2010.
Sec Auditor's Report 62
Postlethwaite & Nettervilie
A frofeiiionol Accoonling CcrpoiuliiW AsiDcioiwii OHk«i in Priiicipol Cilies of iha United States
WWW, p ftc po. com
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
Tlie Honorable Mariin N. Gusman Orleans Parish Criminal Sheriffs Office:
We have audited the financial statements of the governmental activities, the busiuess-type activities, each major fund, and the aggregate remaining fund information of Orleans Parish Criminal Sheriffs Office (the Office) as of and for tiie year ended December 31, 2009, which collectively comprise the Office's basic fmancial statements and have issued oiu" report thereon dated June 11, 2010. We conducted our audit in accordance with auditing standards generally accepted in tlie United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
III plaiming and perfonuing our audit, we considered the Office's internal conh-ol over financial reporting as a basis for designmg our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on tlie effectiveness of the Office's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of tlie OiTice's internal control over financial reporting.
A deficiency in internal control exists when tlic design or operation of a control does not allow maKagement or employees, in the normal course of perfonning their assigned functions, to prevent, or defect and con-ect misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that tliere is a reasonable possibility that a material misstatement of tlie entity's financial statements will not be prevented, or detected and coirected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above.
63
30th Floor - Energy Centre < 1100 Poydras Street • New Orieans. LA 70163-3000 • Tel: 504.569.2978 2324 Severn Avenue • Metairie, LA 70001 • Tel; 504.837.5990 • Fax: 504.834.3609
Compliance and Other Matters
As part of obtaining reasonable assurance about whetiier the Office's financial statements are fi^e of material misstatement, we perfonned tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance witli which could have a du-ect and material effect on the determination of fmancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matteis that are required to be reported under Government Auditing Standards.
This report is ijitended solely for the infonnation and use of tlie Office, the Office's management; federal, state and city awarding agencies; and the Louisiana Legislative Auditor and is not intended to be and should not be used by anyone other tiian these specified parties. However, under Louisiana Revised Stamte 24:513, this report is distributed by die Legislafive Auditor as a public document.
-2^,
New Orleans, Louisiana June 11, 2010
64
P&N
Postlethwaite & Nettervilie
A fVofeisional Accountii^ Coipca'iori Associoud OHk^i in Piincipol Cilim of l Q Untliid Sicituv
www.pncpa.com
REPORT ON COMPLIANCE WIIH REQUIREMENTS APPUCABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Tlie Honorable Mariin N. Gusman Orleans Parish Criminal Sheriffs Office:
Compliance
We have audited the compliance of the Orleans Parish Criminal Sheriff's Office (the Office) with the fypes of compliance requirements described in tiie V. S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement tliat are applicable to each of its major federal programs for the year ended December 31, 2009. The Office's major federal program is identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is tlie responsibili^ of the Office's management. Our responsibility is to express an opinion on the Office's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; tlie standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance witli the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit mcludes examining, on a test basis, evidence about the Office's compliance with those requirements and perfonning such other procedures as we considered necessary in the cucumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the Office's compliance with tliose requirements.
In our opinion, the Office complied, in all material respects, with the requirements referred to above that are applicable to its major federal progi'am for the year ended December 31,2009.
Internal Control Over Compliance
The management of the Office is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and perfonning our audit, we considered tlie Office's internal control over
65
30th Floor-Eneiqv Centre • 1100 Poydras Street • New Orieans, lA 70163-3000 • Tel. 504.569,2978 2324 Severn Avenue • Melairie, LA 70001 • Tel: 504.837.5990 • Fax: 504.834.3609
compliance with requirements tliat could have a direct and mateiial effect on a major federal pro^m in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of intemai control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Office's internal control over compliance.
A control deficiency in the Office's intemai control over compliance exists when the desigji or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program oil a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Office's ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by tlie Office's intemai control.
A material weakness is a significant deficiency, or combinafion of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by die Office's intemai control
Our consideration of internal control over compliance was for the limited puiposc described in the first paragraph of this section and would not necessarily identify all deficiencies in intemai control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above.
This report is intended solely for tlie information and use of the Office, the Office's management; federal, state and city awarding agencies; and the Louisiana Legislative Auditor and is not intended to be and should not be used by anyone other than these specified parties. However, under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a pubhc document.
(^tM^su^^Tjlllli^ New Orleans, Louisiana June 11,2010
66
P&N
ORLEANS PARISH CRIMINAL SHERIFF'S OFFICE
Schedule of Findings and Questioned Costs
Year ended December 31,2009
(1) Summarv of Auditors' Results
(a) The type of report issued on the basic financial statements: unqualified opinion
(b) Significant deficiencies in intemai control were disclosed by the audit of tlie fmancial statements: no; Material weaknesses: no
(c) Noncompliance which is material to the financial statements: no
(d) Significant deficiencies in intemai control over major program: no; Material weaknesses: no
(e) The type of report issued on compliance for major program: unqualified opinion
(f) Any audit findings which are required to be reported tmder Section 510(a) of OMB Circular A-133:110
(g) Major program:
United States Itepartment of Homeland Secmity - Disaster Grants - Public Assistance -passed through Louisiana Office of Homeland Security and Emergency Preparedness (CFDA number 97.036)
(1») Dollar threshold used to distinguish between Type A and Type B programs: $352.575
(i) Auditee qualified as a low-risk auditee under Section 530 of OMB Circular A-133: yes
(2) Findings Relating to the Financial Statements Reported in accordance with Government Auditing Standards: None
(3) Findings and Questioned Costs relating to Federal Awards: None
67
ORLEANS PARRISH CRIMINAL SHERIFF'S OFFICE , New Orleans, Louisiana
Summary Schedule of Prior Audit Findings
Year ended December 31,2009
SECTION I INTERNAL CONTROL AND COMPLIANCE MATERIAL TO THE FINANCIAL STATEMENTS No Findings
SECTION n INTERNAL CONTROL AND COMPLIANCE MATERIAL TO FEDERAL AWARDS No Findings
