C H O C TA W R O A D LA N D F ILL (A JointVenture ofthe W ashington Parish Governm ent

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1 06 OFFICIAL FILE CO PY DO NOT SEND OUT (Xerox necessary copies from this oopy ~,nd PLACE BACK in FILE) C H O C TA W R O A D LA N D F ILL (A JointVenture ofthe W ashington Parish Governm ent o O 0 0 e G eneralpurpose FinancialStatem ents and IndependentA uditor's Reports YearEnded Decem ber31,1999 U n,:!c'rf"': el:i;:~,".. ~ "" ~ :, r(;~" :,f;a ptli:!ic,f :,.:. ~ RIC HA RD M.SEA L C ERTIFIED PU BLIC A C C O U N TA N T ~ C ERTIFIED G O V ER N M EN T FIN A N C IA L M A N A G ER

2 C HO CTAW RO A D LA ND FILL TABLE O F CO NTENTS Decem ber PA G E ndependentauditor's Reporton the G eneralpurpose FinancialStatem ents Balance Sheet Statem entofr evenues and Expenditures Budget(GAAP Basis)and Actual Statem entofjointventurers'equity Notes to the G eneralpurpose FinancialStatem ents ndependenta uditor's Reporton Cem pliance and on InternalControlO verfinancialreporting Based on an A uditoffinancialstatem ents Perform ed in accordance w ith G overnm enta uditing Standards

3 RIC H A RD M,SEA L C ERIIFIEE) PU BLIC A C C O U N TA N T o C ERTIFIED G O V ER N M EN T FIN A N C IA L M A N A G ER ND EPEN D ENT A U D ITO R'S REPO RT O N [H E G EN ERALPU R PO SE FINANC IAL STATEM ENTS C hoctsw Road Landfil Franklinton.Louisiana Ihave audited the accom panying generalpurpose financialstatem ents of the Choctaw Road Landfil,a jointventure ofthe W ashington Parish Governm entand the C ity ofbogalusa,as ofand forthe yearended Decem ber31,1999,as listed in the table of contents. These generalpurpose financial statem ents are the responsibility ofthe C hoctaw Road Landfill's m anagem ent. M y responsibility is to express an opinion on these generalpurpose financialstatem ents based on m y audit. Iconducted my auditin accordance w ith genera ly accepted auditing standards and the standards applicable to financialaudits contained in G overn m enta uditing Standards, issued by the Com ptroller G eneral of the U nited States. Those standards require thatiplan and perform the auditto obtain reasonable assurance aboutw hetherthe financialstatem ents are free ofm aterialm isstatem ent.a n audit includes exam ining on a test basis, evidence supporting the am ounts and disclosures in the financialstatem ents. An audit also includes assessing the accounting principles used and significantestim ates m ade by m anagem ent,as w ell as evaluating the overa lfinancialstatem entpresentation. Ibelieve thatm y audit provides a reasonable basis form y opinion. In m y opinion,the generalpurpose financialstatem ents referred to above present fairly,in a lm aterialrespects,the financialposition ofthe C hoctaw Road Landfil, a jointventure ofthe W ashington Parish Governmentand the City ofbogalusa,as ofdecem ber31,1999,and the results ofits operations forthe yearthen ended in conform ity w ith generally accepted accounting principles. 1 PO Sl O FFIC E BO X 128 o BO G A LUSA.LO UISIA NA o (504) o FAX (504)

4 In accordance w ith G overnm enta uditing Standards,Ihave also issued m y report dated M ay 19,2000 on m y consideration ofthe C hoctaw R oad Landfill's internal controloverfinancialreporting and m y tests ofcom pliance w ith certain provisions oflaw s,regulations,contracts,and grants. Bogalusa,Louisiana M ay 19,2000 Certified Public Accountant 2

5 C H O CTAW R O A D LA N D FILL G ENERA l_fund Balance Sheet Decem ber A SSETS C ash Tipping fees receivable $ 3,915 75,763 Totalassets LIA BILITIES A N D FU N D BA LA NC E Liabilities: A ccounts payable Totalliabilities Fund Balance: Jointventurers'equity (deficit) W ashington Parish G overnm ent C ity ofbogalusa Totalfund balance ~ 419 _~Z& ,279._ ~48,572) _37,707 Totalliabilities and fund balance The accom panying notes are an integralpartofthis statem ent. 3

6 C H O CTAW R O A D LA N D FILL G EN ERA L.FU ND Statem entofrevenues and Expenditures Budget(GAAP Basis)and Actual YearEnded Decem ber Reverlues: Tipping fees Interest Sale oftim ber Totalrevenues B_ ~uc_q_~ $ 231,507 5O Actual V ariance Favorable (Unfavorable) $ (4,590) (372) ,246 Expenditures Current Sanitation: Landfilloperation contract 445, ,294 Salaries 35,671 35,671 Fringe benefits 3,283 3,297 W orkers'com pensation 3,309 3,638 H ospitalization 4,624 4,801 Dentalinsurance C lay 5,781 5,780 Insurance 36,395 32,085 M aintenance 1,404 1,404 Legal Engineering 42,579 42,579 Utilities 9,110 9,110 Supplies Perm itfee 2,829 2,829 M iscellaneous 25,319 26,626 Accounting & auditing 2,740 2,740 Capitaloutlay (Cel#3) ,008 Totalexpenditures " _1~42: _ 8,182 1,434,63 5 (2,114) (14) (329) (177) 2 1 4,310 (i) I (1,307) (6,825) (6,453) Excess(deficiency)ofrevenue overexpenditures The accem panying notes are an integralpartofthis statem ent. ~ 4 o.

7 CHO CTAW RO AD LANDFILL G EN ERA l_fun D Statem entofjointventurers'equity YearEnded Decem ber W ashington Parish G overnm ent C ity of Bogalusa Total Balance,January 1,1999 $ $ $ C ontributions by JointVenturers 764, , Excess (deficiency)ofrevenues overcontributions by Joint V enturers _. (678,249) (489~133) _~ ~167,382) Balance(deficit), Decem ber The accom panying notes are an integralpartofthis statem ent 5

8 CHO CTAW ROAD LANDFILL (A JointVenture ofthe W ashington Parish Governm ent Notes to the G eneralpurpose FinancialStatem ents Decem ber31,1999 NTRO D UC TIO N During 1985,the W ashington Parish Government(the Parish Government)and the City ofbogalusa (the City)entered into a verbalagreementforthe construction and operation ofthe Choctaw Road Landfil(the jointventure).the landfilwas opened in July of1989. T he agreed upon percentages forsharing ofconstruction costs, revenues,and operating costs w ere 58.1% forthe Parish G overnrnentand 41.9% forthe City.The Parish Governmenlmaintains the records forthe jointventure and controls actualreceipts and expenditures. The landfilloperates on a "cellbasis",thatis,only a portion or "cell"ofthe landfill is used ata tim e. C ertain m aterials and equipm entused to contain the w aste and m onitorthe environm entaleffectoflandfilloperations,such as liners and leachate collection system s, are installed before the cell is ready to receive w aste in accordance w ith federaland state requirem ents.finalcoveris applied to each ce l once itis filled to capacity.the firstand second cells have been covered,and the third cellw as com pleted in NO TE,1 SUM M A RY O F SIG NIFICA NT ACCO UNTING PO LICI['S A BA SIS O F PR ESENTATIO N The accom panying financialstatem ents ofthe C hoctaw Road Landfillhave been prepared in conform ity w ith generally accepted accounting principles as applied to governm entalunits.the G overnm entalaccounting Standards Board (GASB)is the accepted standard setting body forestablishing governmental accounting and financialreporting principles. B R EPO RT IN G ENTITY G A SB Statem entno.14 established standards fordefining and reporting on the financialentity,and established standards forreporting participation in joint ventures.itdefined a jointventure as "a legalentity orotherorganization that results from a contractual arrangem ent and that is ow ned, operated, or governed by two ormore participants as a separate and specific activity subject to jointcontrol,in which the participants retain (a)an ongoing financialinterest 6

9 C HO CTAW RO A D LA N D FILL Notes to the GeneralPurpose FinancialStatements (continued) or(b)an ongoing financialresponsibility." StatementNo.14 also established thatsuch jointventures are standalone reporting entities. Therefore,the C hoctaw Road Landfilhas applied the provisions ofstatem entno.14 as ifil w ere a prim ary governm ent. C. FUND ACC O UNTING A fund is a separate accounting entity w ith a selfbalancing setofaccounts The jointventure has only one fund type (Governmental)and one fund: G eneralfund The generalfund accounts for revenues and expenditures from landfill operations and forjointventure investments received from the Parish G overnm entand the City. D. BASIS O F ACCO UNTING Basis ofaccounting refers to w hen revenues and expenditures are;recognized in the accounts and reported in the financialstatem ents. 13asis ofaccounting relates to the tim ing of the m easurem ents m ade, regardless of the m easurem entfocus applied. The G eneralfund is accounted forusing a flow ofcurrentfinancialresources m easurem entfocus.the accom panying generalpurpose financialstatem ents have been prepared on the m odified accrual basis ofaccounting. R evenues Intergovernm entalrevenue and tipping fees are susceptible to accrual,and are recognized as revenue w hen earned. Expenditures Expenditures are recognized w hen the liability is incurred O therfinancina Sources Contributions by participants foroperations ofthe Choctaw Road Landfi are accounted foras otherfinancing sources. 7

10 CHO CTAW ROA D LA NDFILL Notes to the GeneralPurpose FinancialStatements (continued) E. USE O F ESTIM ATES The preparation offinancialstatem ents in conform ity w ith generally accepted acco unting principles includes the use ofestim ates thatafectthe financial statem ents. A ccordingly,actualresults could diferfrom those estim ates. F. BU D G ET PRACTIC ES The 1999 budgetofchoctaw Road Landfilw as included in the budgetofthe W ashington Parish G overnm entas a specialrevenue fund. U nexpended appropriations lapse atyearend G. ENC UM BRA NC ES The Choctaw Road Landfiluses encum brances.the issuance ofa purchase orderorthe signing ofa contractcreates an encum brance.the encum brance dees notrepresentan expenditure forthe period,only a com m itm entto expend reso urces. H C O M PE N SATED A BS EN C ES O ne em ployee ofthe W ashington Parish G overnm enthas been assigned to the Choctaw Road Landfil.The jointventure hasno employees,and no liability forcom pensated absences. FIXED ASSETS Land cost, construction costs,and other fixed assets are recorded in the generalfixed assets accountgroup ofeach participant's individualfinancial statem ents. No depreciation has been provided on generalfixed assets. NO TE 2 PA RTIC IPA NTS'M ETHO D O F FUN DING The Parish G overnm ent's share ofcosts has been funded by a one percentsales tax in W ashington Parish,excluding W ard 4. The C ity's share ofcosts has been funded by an ad valorem tax on property w ithin the city lim its ofbogalusa and the issuance ofgeneralobligation bonds. The participants contribute these funds to the jointventure as needed. 8.

11 C HO CTAW ROAD LA NDFILL Notes to the GeneralPurpose FinancialStatements (continued) NO TE 3 SO LID W A STE LA NDFILL C LO SURE A ND PO STC LO SURE CA RE CO STS State and federallaw s and regulations require the C hoctaw Road Landfillto place a finalcoveron its landfillsite w hen itstops accepting w aste and to perform certain m aintenance and m onitoring functions atthe site for30 years after closure. A related liability is being recognized based on the future closure and postclosure care costs thatw illbe incurred nearorafterthe date the landfilno longeraccepts w aste.the recognition ofthese landfillclosure and postclosure care costs is based on the am ountof the landfillused during the year. The estim ated liability for closure;and postclosure costs atdecem ber31,1999,determ ined by the landfill's engineer,was $677,235.However,the actualcostofclosure and postclosure care m ay be;higherdue to inflation,changes in technology,orchanges in landfilllaw s and regulations. The estimated liability forclosure and postclosure care costs of$677,235 as of Decem ber 31, 1999 has been recorded in the generallongterm debt of each participant's separate financialstatem ents as follow s: W ashington Parish G overnm ent C ity ofbogalusa 58.1% 41.9% $ 393, ,761 Neitherthe Parish G overnm entnorthe City is required to setaside funds in escrow to finance future closure and postclosure (are costs. NO TE 4 LITIG ATIO N A ND C LAIM S There are no pending orthreatened litigation concerning the jointventure,norany unasserted claim s orassessm ents. NO TE 5 LA N D FILL O PERA TIO N C O NTRA C T The Parish G overnm ent and the C ity entered into a contractw ith Double C Transportation,Inc.to operate the Landfill. The contractbegan on June 26, 1991 and continues forapproxim ately ten years depending on cellusage. The fee for 9 "

12 C HO CTAW ROA D LANDFILL Notes to the GeneralPurpose FinancialStatements (continued) services rendered by the contractorbegan at$27,820 perm onth with annual adjustments to reflectfluctuations in the Consumers Price Index. Double C Transportation,Inc.changed its nam e to L.andworks,Inc.on January 12,1993. NO TE 6 EXPENDITURES PA ID BY PA RTICIPA NTS The C hoctaw Road Landfil's o fice is located in the W ashington Parish Courthouse. The costofm aintaining and operating the courthouse,as required by Louisiana Revised Statute 33:4713, is paid by the W ashington Parish G overnm ent. In addition,certain other expenditures paid by the individualparticipants are not included in the accom panying financialstatem ents. 10

13 RIC HA RD M,SEA L C ERTIFIED P U BLIC A C C O U N TA N T o C ER TIFIED G O V ER N M EN T FIN A N C IA L M A N A G ER N D EPEN D ENT A U D ITO R'S R EPO RT O N C O M PLIA NC E A N [)O N INTERNAL CO NTROL OVER FINANCIAL REPORTING BASED ON AN A UD IT O F FINA NC IAL STATEM ENTS PERFO RM ED IN ACCO RDA NC E W ITH G O VER N M EN T A UD ITIN G S TAN DAR D S C hoctaw Road Landfil Franklinton.Louisiana Ihave audited the financialstatements ofchoctaw Road Landfil,a jointventure of the W ashington Parish G overnm entand the C ity ofbogalusa,as ofand forthe year ended Decem ber 31, 1999, and have issued m y report thereon dated M ay 19,2000.Iconducted m y auditin accordance w ith generally accepted auditing standards and the standards applicable to financialaudits contained in G overnm ent Auditing Standards,issued by the C om ptro lerg eneralofthe United States. Comp liance A s partofobtaining reasonable assurance aboutw hetherc hoctaw Road Landfill's financialstatem ents are free of m aterialm isstatem ent, Iperform ed tests of its com pliance w ith certain provisions of law s, regulations,contracts and grants, noncom pliance w ith w hich could have a direct and m aterial effect on the determ ination offinancialstatem entam ounts. How ever,providing an opinion on com pliance with those provisions was notan objective ofmy auditand,accordingly, Ido notexpress such an opinion. The results ofm y tests disclosed no instances of noncom pliance thatare required to be reported under G overnm enta uditing Standards. nternalcontrolo verfinancialreeortina In planning and perform ing m y audit,iconsidered Choctaw Road Landfil's internal controloverfinancialreporting in orderto determ ine m y auditing procedures forthe purpose ofexpressing m y opinion on the financialstatem ents and notto provide assurance on the internalcontrolow.~rfinancialreporting. M y consideration ofthe internalcontroloverfinancialreporting w ould notnecessarily disclose allm atters in the internalcontroloverfinancialreporting thatm ightbe m aterialw eaknesses. A m aterialw eakness is a condition in w hich the design oroperation ofone orm ore 11 PO ST O FFIC E BO X 128 o BO G A LUSA,LO UISIA NA o (504) o FA X (504)

14 thatm isstatem ents in am ounts thatw ould be m aterialin relation to the financial statem ents being audited m ay occurand notbe detected w ithin a tim ely period by em ployees in the norm alcourse ofperform ing theirassigned functions. Inoted no m atters involving the internalcontroloverfinancialreporting and its operation that Iconsiderto be m aterialw eaknesses. This reportis intended forthe inform ation ofc hoctaw Road Landfil's m anagem ent and the office ofthe Louisiana Legislative A uditor. H ow ever,this reportis a m atter ofpublic record and its distribution is notlim ited. Bogalusa,Louisiana M ay 19,2000 Certified Public Accountant 12

IN D IG EN T D EFEN D ER BO A RD

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