Franklin Parish Sheriff’s Office’s net position totaled approximately $17.7 million as of June 30, according to an audit by Louisiana Legislative Auditor’s report.
Net position is a key determinate on financial health of an organization over a period of time. The department’s net position increased by $3.1 million from the previous year.
Total assets for 2020 amounted to approximately $27.5 million.
Current and other assets were listed at $19.4 million, an increase of $3.5 million from 2019, according to the audit.
Current liabilities amounted to $569,074 with long-term liabilities the largest at $8.6 million.
Revenues totaled approximately $15.2 million for year, according to the audit.
Largest source of revenues came from housing prisoners at $8.4 million followed by federal intergovernmental revenue at $2.6 million. The Sheriff’s office also received $1.3 million in sales taxes and $973,349 in ad valorem taxes.
Additionally, cash and cash equivalents increased $1.2 million from the prior year.
Total expenditures amounted to $11.5 million for the year, according to the audit.
Sheriff’s office spent $7.1 million in public safety while spending $3.7 million in operating services.
Additionally, the sheriff’s office spent $308,978 in materials and supplies and $285,684 in travel and other charges.
At the end of year, Franklin Parish Sheriff’s combined fund balances was a surplus of approximately $19 million. The June 30, 2019 combined governmental fund balance was approximately $15 million.
Auditors David M. Hartt, CPA, of West Monroe, listed one finding in the report.
2020 - 1 Under Collateralized Deposit
Condition: At year end, the funds deposited at Farm Bureau Bank were not fully collateralized.
Cause: Management changed the asset holdings at Farm Bureau Bank to maximize the rate of return while considering the upcoming cash needs of operations. Because the holdings in the account changed, the new account type necessitated a pledge of collateral securities.
Criteria: The amount of the security shall at all time be equal to one hundred percent of the amount of collected funds on deposit of the credit of each depositing authority except that portion of the deposits insured by any governmental agency insuring bank deposits.
Recommendation: Management should review the pledged collateral reports against the bank balance each month to ensure adequate coverage is held at each institution.
Management’s response: Management understands the requirement for all deposits to be fully insured and collateralized. Due to the unusual circumstances during fiscal year 2020 related to the COVID pandemic, and the resulting constraints on management’s time, the additionally pledged collateral on the Farm Bureau Bank holdings did not happen prior to year-end. The asset holdings changed between March 2020 and April 2020, when the pandemic related use of time and resources was at its peak. The funds are now collateralized, and management will periodically review the pledge reports for adequate coverage.