As of June 30,2000 and for the Years Ended June 30,2000 and 1999

Transcription

1 O FFICSAL FILE (:(H~;' DO NOY Sf'.NI) OUl O',elo," rkc(",:iy (x~,py,~1,: I'i/.,~i[ A T C H AFA LAYA BA SIN LEV EE D IST R IC T STA T E O F I.O U ISIAN A G eneralpurpose FinancialStatem ents and Indep endent A u ditors'rep orts As of June 30,2000 and for the Years Ended June 30,2000 and 1999 Rele~s.tr

2 ATC H A FALAYA BASIN LEVEE D ISTRIC T 525 C O U RT ST RE ET PO RT A LLEN,LO U ISIAN A (225) G O V E R N IN G B O A R D PARIS H Ascension Axsum ption lberia Iherville Iberville Iberville Pointe C oupee Pointe C oupee StLandry StM artin StM artin StM ary ~ estbaton P,ouge W estbaton Rouge CO M M ISSIO N ER G erald M exander l~ rlm athem e Ferdinand Breaux,Jr Brian W illis G ene Seneca T.M urry Tillm an M ark Engem ann W ayne O rillion F.bert Benoit C hester L.Sim on Ray B rignac M erlin D upre M ike M aranto,sr. Johnny Settoon,Jr. W illiam C,Tyson,Executive D irector W illiam C.D upont,legalc ounsel M EET IN G D AT ES 1stW ednesday of F.very M onth 5:00 PM -D istrict's O fi ce

3 TA B LE O F C O N T E N T S N ot. e Page IndependentAuditors'Reporton the FinancialStatem ents 1 G eneralpurpose FinancialStatem ents: Com bined Ba]ancc Sheet-AllFund Types and Account G roups Statem entofrevenues,expenditures,and C hanges in Fund Balance - AllG overnm entaltypes - Statem entofrevenues,expenditures,and C hanges in Fund Balances - Budgetand Aclual(GAAP Basis)-AllGovernm entalfund Types- Forthe YearEnded June 30,2000 For the Year Ended. June 30, N otes to the FinancialStatem ents - Introduction Sum m ary of SignificantAccounting Policies Basis of Presentation Reporting Enlity. Fund Accounting Basis of Accounting BudgetPractices Encum brances C ash and Investm ents Bad l)ebks Inventories Fixed Assets C om pertsatcd Absences Postem ploym ent1lealth Care and Life Insurance Benefits Risk M anagem ent l~stim ates Fund Equity TotalCohm m s on C om bined Sta tem ents Cash and Investm ents Changes in Fixed /kssets Ad V alorem Taxes C om pensated Absences Postem ploym el~t1leahh Care and Life lnsum nce Benefits Retirem em System Litigation and C laim s FederalFinancial/~ssista nce Com pensaticm Paid to Board M em bers

4 TA B LE O F C O N T EN T S O ther Report.~ Required by G overnm enta uditing Standards IndependentAuditors'ReportCom pliance and on InternalControlO ver FinancialReporting B ased on an Auditof G eneralpurpose FinancialStatem ent~s PerfoJ~ned in Accordance w ith G overnm en ta uditing Standards Schedule of Finding Resolution ofprior Ycar AuditFinding Page Supplem entalinform ation Required by State of Louisiana -l)ivision of Adm inistration -O ffice of Slatew ide Reporling and Accounting Policy IndependentAuditors'Reporton AnnualFinancialReportto the D ivision of Adm inistration -O ffice of Statew ide Reporting and Accounting Policy A nnualfinancialreport 22 23

5 ~eray ~.Fhum,FP,A,,AP,AF I'.O.B ox 158 D enham Springs,LA :5/ Fax:225/ and lgeverl!t.4,l~!tall GP~t 7426 PresidentD r. Baton Rouge,LA / Fax:225~ IN D EPEN D EN T A U D ITO R'S REPO RT O N T H E FIN AN C IAl.STA TEM EN TS Board of C om m issioners Atchafalaya Basin Levee D istrict State of Louisiana PortAllen,lxm isiana W e have audited the accom panying general purpose financial statem ents of the AT C IlAFA1.AYA BASIN I.EVEE D ISTRICT,a com ponent unit of the Sta te of Louisiana,as of June 30,2000,and for the years ended June 30,2000 and 1999,as listed in the Table of Contents. These generalpurp ose financialsta tem ents are the responsibility ofm anagem entof the Atchafalaya Basin Levee D istrict. O ur responsibility is to express an opinion on these generalpurpose financialstatem ents based on ou r audit. W e conducted our audit in accordance w ith generally accepted auditing standards, the standards applicable to financialaudits contained in G overnm entauditing Standards,issued by the Com ptroller G eneralof the United Sta tes;and lhe Louisiana G overm nentala udit Guide. Those sta ndards require thatw e plan and perform the audit to obtain reasonable assurance aboutw hetherthe genera lpurpose financialsta tem ents are free of m aterialm isstatem ent. An auditincludes exam ining,on a testbasis,evidence supporting the am ounts and disclosures in the generalpurp ose financialstatem ents. An audit includes assessing the accounting principles used and significant estim ates m ade:by m anagem ent,as w ell as evaluating the overall general purp oae financial statem ent presenta tion. W e believe that our audit provides a reasonable basis forouropinion. In our opinion,the genera lpurpose financialsta tem ents referred to in above presentfairly,in allm aterialrespects,the financialposition ofthe Atchafalaya Basin Levee DistrictasofJune 30, 2000,and the results ofits opera tions forthe years ended June 30,2000 and 1999,in conform ity w ith generally accepted accounting principles.

6 In accordance w ith G overnm enta uditing Standards,w e have also issued our report dated July 26,2000,on our consideration of the Atchafalaya Basin Levee D istrict's intern alcontrol over financialreporting and our tests of its com pliance w ith certain provisions of law s,regulalions,contracts and grants. W e have also issued a report dated July 26,2000,on our consideration ofthe Atchafalaya Basin Levee D istrict's annualfinancialreportto the Louisiana D ivision of Adm inistration as of and forthe yearended June 30,2000. ~cra~ ft.ghustz Cerlified Public Accountant.APAC gevcr& A,l~gal Certified Public Accountant July 26,2000

7 o~ ~

8 ATCH AFALAYA BASIN LEVEE D ISTRICT STATEM EN T O F REVEN UES,EXPEN D ITURES,AN D C HA N G ES IN FU N D BALAN CES - G O VERN M EN TAL FU N D TYPE -G EN ERAL FU N D FO R TItE YEARS ENDED JUNF 30,2000 and 1999 Revenues: Taxes - Ad valorem taxesand interest lntergovernm entalrevenues- State revenue sharing Terrebonne Levee & C onservation D istrict Reim bursem entfrom D NR Use ofm oney and property - Interestealned Royalties and leases Perm its and fees M iscellaneous- Sale ofused equipm ent O ther revenues TotalReve ra m s $ 2,396, , ,293 7, ,16'1 263,562 3,70:1 83, $ 2,359, , , ,748 99, , ,356,364 Expenditures Salalies-president Per diem -com tu issioners Salaries-executive director Salaries-adm inistrative Salaries -police officers Salaries.m aintenance facility Salaries.heavy equipm entoperators Salark:s.tra ctor drivers Em ployee serv ices Professionalservices Travel M aterialand supplies insurance Police protection Adm irlistrative D eductionsfrom ad valorem taxes O ther Capitaloutlay 12,092 29,40'0 58, , , , , , ,625 38,977 22, ,002 79,200 13,038 45,240 16,953 86, ,486 12,046 30,900 60, , , , , , ,511 66,226 17, ,250 85,174 13,282 60,090 87,172 11, ,092 TotalExpenditures Excessof Rew :nues O ver Expenditu res Fund Balance -Beginning of Year 3,697,694 3,725,484 (255,607) ( ) 6,300,717 6,669,837 FUND BALAN CE -End of Year $ 6,045,110 $ 6,300,717 "I'11(:accom panying notesare an integralpartof this statem ent

9 ATCHAFAL&YA BASIN LEVEE D ISTRICT STATEM ENT O F REVEN U ES,EX PEN D ITU RES,AN D CItAN G ES IN FU N D BALAN CES - BUI)GET AND ACTUAL (GAAP BASIS)-GOVERNM ENTAL FUND TYPE -GENERAL FUND FO R TIlE yeaik END ED.I,tNE 30,2000 Revenues: Taxes- Ad valorem taxesand interest Inlcrgovernm entalrcvenl.les - State revenue sharing Terrebonne Levee & C onservation D istrict Reim bursem entflom D N R Use ofm oney and properly - ]nteyestearn ed Royahiesand leases perm itsand lees M iscellaneous Sale ofused equipm ent O therreverltles Budget Actual $ 2,444,496 $ 2,396,601 $ 236, , , , , ,2!/3 7.7(10 263,16't 263, ,749 22,5!37 Variance Favorable (Unfavorable)_ (47,895) 2,158 19, (37,052) 3, (2, TotalRevenues 3,487,823 3,442,087 (45,736A _ Expenditures: C urrent- Salaries-president Per diem -com m issioners Salaries -executive director Salaries-adndnistrative Salaries-t-,olice oficers Salaries-m ainlenance facility Salaries~l:,eavy equipm entoperators Salaries.tractor drivers Em ployee benefits Professionalsen,ices Travel M aterialand supplies Insurance Police protection Adm inislnttive O ther O eduetiolls [rotylad valoreltltaxes Capitaloutlays 12,000 35,100 57, , , , , , ,869 44,795 24, ,509 80,283 16,134 45,766 17,335 87, ,933 12,092 29,400 58, , , , , , ,625 38,977 22, ,002 79,200 13,038 45,240 16,953 86, ,486 (92) 5,700 (736) 2,979 5,774 4,(190 16,881 (1,275) 13,244 5,818 2,479 10,507 1,083 3, , ,447 3,919,937 3,697, F.xcess ofrevem m so verexpenditures 0 32,114) (255,607) 176,507 Fund Balance -13egim fing of Year FU N D BALAN Ct"-End of Year _6A 00, ~ 'I7 _ $ 5,839,126 $ 6,045,110 29,477 $ 205,984 The accom panying notes arc an integralpan of thisstatem ent. 5

10 ATCH AFAI.AYA BASIN LEVEE D ISTRICT STATIiM EN T O F REVEN UES,EXPEN D ITURES,AN D C HAN G ES IN FUN D B/kLAN CES - BUDGET AND ACTUAL (GAAP BASIS)-GOVERNM ENTAL FUND TYPE -GENERAL FUND FOR TH E ~ ENDED JUN E 30,1999 l~evenues: Taxes- Ad valorem taxes and interest lntergovcrnm cntalrevenues- State revenue sharing Terrebonnc Levee & C onservation D istrict Use ofm oney and property - Interestcatne.d Royalties and leases Perm its and fees M iscellaneous Sale ofused equipm ent O therrevenues Budget $ 2,389, , ,533 92, , Actual $ 2,359, , ,748 99,643 2,100 Variance Favorable ~ nfavorable) _ (29,622) (786) 28, ,748 7, ,724 9,724 2~ DZ_ (3,6~- _D _ TotalRevel'rue s 3,023,227 _~.~_5_6~ 6 _ 4 _ 333,137 Expenditures: Current- Salaries-president Perdiem -colnm issioners Salaries-executive director Salaries-adm inistrative Salaries-police officers Salaries-m aintenance facility Salaries-heaW equipm entoperators Salaries-tractor drivem Em ployee benefits Professionalselvices Travel M aterialand supplies Insurance Police protection Adm inistrative. D eductionsfrom ad valorem taxes O ther Capitaloutlays 12,000 35,100 60, , , , , , ,355 61,100 24, ,900 81,430 15,250 61,800 87,500 13, ,384 12,O46 30,900 60, , , , , , ,511 66,226 17, ,250 85,174 13,282 60,090 87,172 11,190 72~ 092 (46> 4,200 (212) (619) (632) (4,289) 23,134 (18,981) (5326) 6,688 51,650 (3,744) 1,968 1, , ,292 TotalExpenditu res 3,918,509 3,725, ,025 Excess of Revenues O ver Expenditu res (895,282) (369,120) 526,162 Fund Balance -Beginning ofyear 6,669,837 6 ~6 _ 6p~837 FUN D BALAN CE.End of Year $ 5,774,555 * _ ~,3oo,717 $ 526,162 The accom panying notesare an integralpartofthisstatem ent

11 A T C I1AFA LAYA BA SIN LEW EE D IST RIC T N O T ES TO T H E FINAN C IAl.STAT EM EN TS JIINE 30,2000 N O T I~1 -IN T RO I)IIC T IO N Tim Atchafalaya Basin Levee D istrict and its Board of Levee C om m issioners w as created by Louisiana Revised Statute 58:291. Its Com m issioners are appoim ed tw the G overnor of Louisiana. The D istrictincludes allorportions of the follow ing parishes: Ascension,Assum p- tion,iberia,lberville,l'ointe Coupee,St.l.andr),St.M artin,st.m ar),and W est Baton Rouge. The D istrict prim arily provides flood protection for those areas in the l)istrict. The Board of lsevee Com m issioners of the Atchafalaya Basin Levee D istrictadm inisters the opera tions and responsibilities ol lhe D istrict in accordance w ith the provisions of Louisiana Revised Statute 38:504. The Atehatalaya Basin Levee D istrictisa com ponentunitof the State of Louisiana and is an integralpartof such reporting entity. N O T E 2 -SU M IdARY O F SIG N II:ICAN T A C C O IJN T IN G PO I.IC ll,~s In April1984,the FinancialAccounting Foundation esta blished the G overnm enta laccounting Standards Board (GASB) to prom ulgate generally accepted accounting principles and reporting sta ndards w ith respect to activities and tra nsactions of state and local governm ental entities. The G ASB has issued a C odification of G overnm ental Accounting and Financial Reporting Sta ndards (GASB Codification).Thiscodification and subsequentgasb pronouncem ents are recognized as genera lly accepted accounting principles for state and localgovernm ent. The aecounting financial sta tem ents have been prepared in accordance w ith such principles. Rep orting_enti_t3! GASB Codification Section 2100 and GASB Statem ent 14, "The Financial Reporting Entity," have defined the governm entalreporting entity to be the Sta te of Ixm isiana. The levee district is considered a com ponentu nitof the State of Louisiana because the sta te exercises oversight responsibility in thatthe governorappointsthe m ajority ofcom m issionersand can im pose his w illupon the levee district. The accom panying financialstatem ents presentinform ation only as to the tra nsactions of the Atchafalaya Basin Levee D istrict,a com ponentunitof the Sta te of l~m isiana. Annually,the State of Louisiana issues generalpuq~ose financialstatem ents,w hich include the activity contained in the accom panying financialsta tem ents. The D istrictuses funds and accountgroups to reporton i~s financialposilion and the results ofits opera tions. Fund accounting is designed to dem onstra te legalcom pliance and to aid financialm anaț,em entby segregating transactions relating to certain governm entfunctions or activities.

12 AT C IIA FA LAYA BA SIN LEVEE D IST RIC T NOTES TO THE FINANCIAL STATEM ENTS (CO NTIN UEI)) JUNE 30,2000 A fund is a separate accounting entity w ith a self-balancing set of accounks. O n the other hand,an accountgroup is a financialreporting device designed to provide accountability for certa in assets a~d liabilities that are not recorded in the funds because the),do not direcdy affectnetexpendable available resources. Funds ofthe I)istrictare classified into tw o fund types G overnm ental Funds G overnm ental tiands account for allor m ost of the D istrict's general activities,including the collection and disbursem ent of specific or legally restricted m onies, the acquisition or construction ofgeneralfixed assets,and the servicing of generallong-tem a debt. G overnm ental tu nds include: G eneral Fund -- the general operating fund of the D istrict and accounts for all financial resources,exceptthose required to be accounted for in other funds. Basisof Accounting The accounting and financial reporting treatm ent applied to a fund is determ ined by its m easurem ent foctls. T he governm ental funds are accounted for u sing a c:urrent financial resources m easur(:lnent focus. W ith this m easurem ent focus,only currellt assets and current liabilities are generally included on the balance sheet. O perating statem ents of these funds presentincreases and decreases in netcurrentassets. The m odified accrualhasis of accounting is used by tlac governm enta lfunds. The governm entalfunds use the follow ing practicesin recording rever'm e.s and expenditures: R even ues Ad valorem taxesand the related state revenue sharing (w hich isbased on population and hom esteads in the parishes) are recorded in the year the taxes are assessed,to the extentthatthey are available to finance currentoperations. As pl'ovided by louisiana Revised Statute (LSA-R.S.) 47:1997(b),ad valorem taxes are assessed for the calendar year,becom e due on D ecem ber 31stand becom e delinquenton the subsequentjanuary 1st. The taxes are generally collected in January,February,M arch and Aprilofeach year. O iland gas royahies are recorded as revenue w hen received,w hich is fourto five w eelcs after the production of the oilor gas. Substantially allotherrevenues are recorded w hen received

13 AT C ItAFALAYA BASIN LEVEE D IST RICT NOTES TO TIlE FINANCIAl.STATEM ENTS (CO NTINUED) JUNE 30,2(100 Expenditures Expenditures are generally recognized under tile m odified accrual basis of accounting w hen the re lated fund liability is incurred, except for accum ulated annualand sick leave,w hich is recognized w hen paid. Other Financing Sources (Uses) B udgetp ractices OLher financing sources (uses),representing transfers between funds thatare notexpected to be repaid. The D istrictprepares its hudgetin accordance w ith LSA-R.S.38:318. The budgetis prepared on a m odified accrual basis for the G enera l and Special Revenue Funds. The budgets as presented are: as originally adopted w ith no am endm ents. Form al budget integra tion is em ployed as a m anagem ent controldevice during the year. Allappropriations lapse atyear end,and any encum hrances outs tanding at year end are included in the nextyear's budget w ith funds appropriated in thatyearto finance them. E n cum brances The D istrictdoes nolfollow the encum bra nce m ethod of accounting Cash and Investm ents (;ash includes petty cash, dem and deposits, interest-bearing dem and deposits, and m oney m arketaccounts. U nder state law,the D istrictm ay depositfunds w ith a bank organized under lxm isiana law or of any other state of the U nited States,or under the law s of the U nited States, The D istrictm ay investin certificates of depositof sta te banks organized under Louisiana law and nationalbanks having their principalofl]ces in Louisiana. Furtherm ore,in accordance w ith I~A R.S.33:1324 and Attorney G eneralo pinion ,m ay investin the Louisiana Asset M anagem entpool(lam P). Cash and cash equivalents include am ounts in tim e deposits and "~hose investm ents w ith originalm aturitiesof 90 days orless. Investm ents are lim ited by R.S.33:2955 and the Board's investm ent policy. If the original m aturities ofinvestm ents exceed 90 days,they are classified as investm ents;how ever,ifthe originalm aturitiesare 90 days or less,they are classified ascash equivalents.

14 AT C IIA FALAYA BA SIN I.EV EE D IST RIC T NOTES TO TItE FINAN CIAL STATEM ENTS (CO NTINUED) JUNE 30,2000 B ad D ebts The D istrict uses the direct charge-of m ethod w hereby uncollectible'am ounts due from ad valorem taxes arc recognized as bad debts at the tim e inform ation becom es available w hich w ould indicate the uncollectibility of the particularreceivable. The directcharge-offm ethod is used because it does not cause a m aterial departure from GAAP and it approxim ates the valuation m ethod In ven tories Inventories for stq~plies are im m aterialand are recorded as expenditures w hen purchased Fixed asset.,;consisting of m ovable property are sta ted atpurchased historicalcost. Land and buildings are recorded atfair m arketvalue since historicalcostis notavailable. 1)onated fixed assets,w hich com prise less than one percent of totalassets,are valued at their fair m arket value on the date donated. T he cost of additions includes contracted w ork, direct labor, m aterials and allow able costs. Significant additions,im provem ents,m aintenance and repairs arc capita lized. Assets are recorded as expenditures in the governm entalflm dsand capitalized atcostin the G eneralfixed AssetsAccountG roup. Public dom ain ("infrastructure") fixed assets consisting ofcertain im provem ents other than buildings, including dra inage im provem ents, are not capitalized w ith other genera l fixed assets. N o depreciation has been provided on generalfixed assets Com t~ensated A bsences Em ployees earn and accum ulate annual and sick leave at various rates,depending on their years of service. The am ount of annual and sick leave that m ay be accum ulated by each em ployee is unlim ited. U pon term ination,em ployees or their heirs are com pensated for up to 300 hours of unused annualleave atthe em ployee's hourly ra te of pay atthe tim e of term ination. Upor~retirem ent,unused annualleave in excess of300 hours plus unused sick leave are used to com pute rctirem entbenefits. The cost of leave privileges,com puted in accordance w ith G ASB Codification Section C 60,is recognized as a current year expenditure in the G eneral Fund w hen leave is actually taken. The costof leave privileges applicable to generalgovernm entopera tions notrequiring current resources is recorded in the genera llong-tern ) obligations accountgroup. 10

15 AT C IIAFA LAYA BASIN LEVEE D ISTRIC T NOTES TO TIlE FINANCIAl.STATEM ENTS (CO NTINUED) JUN E 30,2000 Postemployrnem Itealtb Care and Life Insurance Benefits The D istrictprovides certain continuing health care and life insurance benefits for its retired em l,loyees. The D istrictrecognizes the costof providing these retiree benefits as an expendi - ture w hen paid during the year. R isk M ~ ~L_ctim ates The preparation of financial statem ents in conform ity w ith generally accepted accounting principles requires the D istrict's m anagem ent to m ake estim ates and assum ptions that effect certain reported am ounks and disclosures. Accordingly,actualresuhs m ay differ from those estim ates. Fund Equit~ D esignated for F.m ergency Flood Fighting --m anagem entw ith the concurrence ofthe Board has designated portions of the fund equiu,for contingentem ergency flood fighting purposes. D esignated forbuilding and Im provem ents --m anagem entw ith the concurrence ofthe Board has designated pot'lions of the fund equity for the construction of a new m aintenance facility at1lenderson,1.ouisiana, 11

16 AT C H AFALAYA BA SIN LEVEE D IST RIC T NOTES TO TItE FINANCIAL STATEM ENTS (CO NTINUED) JU N E 30,2000 Total Colum ns'on Com bined S Totalcolum ns on the com bined statem ents are captioned M em ora ndum O nly (overview)to indicate thatthey arc presented only to facilitate financialanalysis. This data does notpresent financial position or results of operations in conform ity w ith generally accepted accounting principles. N either is such data com parable to a consolidation. N O T E 3 -CASttand INVF.STM ENTS AtJune 30,2000,the Districthascash and investm ents (book balances)asfollow s Petty cash l)em and deposits lxm isiana AssetM anagem entpool,lnc C ertificates of deposit $ ,168 1,088,885 4,900,000 Tota 1 These deposits ale sta ted atcost,w hich approxim ates m arket. U nderstate law,these deposits (orthe resuhing bank balances)m ustbe secured by federaldepositinsurance orthe pledge of securities ow ned by the fiscalagentbanks. The m arketvalue ofthe:pledged securities plusthe federaldepositinsurance m ustatalltim es equalthe am ounton depositw ith the fiscalagents. AtJune 30,2000,the District's deposits (collected bank balances) are secured from risk as follow s: D em and deposits and certificates of deposit Federaldepositinsurance Pledged securities $ 5,043, ,000 6,310,303 UninsuredA Jnderpledged AtJune 30,2000,the Districthasinvested $1,088,885 in the Louisiana AssetM anagem entl'ool (1AM P). Thisam ountisnotevidenced by securitiesthatexistin physicalorbook entry form and are notcategorized. 12

17 ATC HA FALAYA BA SIN LEV EE D ISTRICT NOTES TO TIlE FINANCIAL STATEM ENTS (CO NTINUED ) JUNE 30,2000 N O TE 4 -C ItAN (;ES 1N FIX ED A SSETS A sum m ary otchangesin fixed assetsfollow s Balance -3uly 1,1998 $ 64,575 Additions-purchases D eletions -sales Balance -June 30,1999 Additions-purchases D eletions -sales 64,575 Buildings $ 865, ,887 9,770 _ Equipm ent Total $ 3,291,915 $ 4,222, , ,092 (344~98)_ (344,398) 3,672,609 4,603, , ,486 (286,959) (286,959) Balance-June30,2000 $.64_~575 ~_. 875,657 ~ _,949,~66_ $ 4,889,598 N O TE 5 -AD VALO REM TAXE S M'ticle 6,Section 39 of the 1974 Louisiana Constitution provides thatthc D istrictm ay levy an ~ annual tax not to exceed 5.00 m ills to construct and m aintain levees,levee drainage,flood protection, hurricane flood protection, and all other purposes incidental thereto. If the D istrictneedsto raise additionalfu nds in excessof the am ountauthorized by the constitution, the taxesin exce.ss of5.00 m illsm ustbe approved by a m ajority vote ofthe electors ofthe parishes. The D istrictlm qed a 3.90 m illage for the years 1999 and The ratesauthorized and levied have been adjusted because ofreassessm entofproperty asprovided in Article 7,Section 23 of the 1974 Louisiana C onstitution. The follow ing is a sum m ary of taxable valuations and taxes assessed by parish for the year 1999: Ascension Assum ption lberia Ibetwille Pointe C oupee St.LandW St.M artin St.M aw W estbaton Rouge Taxable V aluations $ 7,932,450 $ 56,252,059 11,291, ,690, ,406,933 12,482,200 38,086,033 9,617, ,132,120 Taxes A ssessed 30, ,886 52, , ,798 48, ,659 37, ,719 Total ~6_2~.~ =8_0 _~1 $ 2,444,996 13

18 AT C IIAFAI~ YA BA SIN LE~v'EE D IST RIC T NOTES TO TIlE FINANCIAL STATEM ENTS (CO NTINUEI)) JUNE 30,2000 N O TE 6 -C O M PI~N SAT EI) A BSEN C ES AtJune 30,2000,em ployees ofthe Districthave accum ulated and vested $192,222,ofem - ployee leave benefits,w hich w as com puted in accordance w ith G ASB C odification Section C60. This am ~m ntis recorded in the generallong-term obligations accounl. N O TE 7 -PO STI'.'M PI.O Y M EN T IJEAI.TIt CARE A N D LIFE IN SU IL'~N C E B EN EFIT S Substantially alld istrict em ployees becom e eligible for postem ploym ent heahh care and life insurance benefits if they reach norm alretirem entage w hile w orking for the D istrict. These benefits for retirees and sim ilar benefits for active em ployees are provided through an insurance com pany w hose prem ium sare paid jointly by the em ployee and by the District. Forthe years 2000 and 1999,the costofproviding those benefitsforthe retireestotaled $137,572 and $121,395,respectively. N O T F.8 -RE'FII/EM EN T SY ST EM Plan D escrix@ i _ o._ n: Substantially allem ployees of the D istrictarc m em bers of the Louisiana Stare Em ployees Retirem ent System (System ),a m uhiple-em ployer,public em ployee retirem entsystem (I'EI{S). The.System is a statew ide public retirem entsystem for the benefitof state em ployees and other politicalsubdivisions,w hich is adm inistered and controlled by a separate board of Irustees. Allfull-tim e 1)istrictem ployees are eligible to participate in the System. Benefits vestw ith 10 years ofserv ice. Atretirem entage,em ployees arc'.entitled to annualbenefits equalto $300 plus 2.5% of their highestconsecutive 36 m onths'avera ge salary m ultiplied by their years of credited service. Vested e.m ployeesm ay retireat(a)an)'age w ith 30 yearsofservice,(b)age 55 w ith 25 years ofservice,or (c)age 60 w ith 10 years ofservice. The System also provides death and disability benefits. Benefits are established by state statute. The System is,ru es an annual publicly available financial report thai includes financialsta tem ents and required supplem entaw inform ation for the System. Thatreportm ay be obtained by w riting to the 1,ouisiana State Em ployees Retirem ent System, P. O. Box 44213, Baton Rouge,1A orby calling (504) Funding Poli _ o 3: Covered em ployees are required by sta te statute to contribute 7.5% ofgross salary to w hich the D istrictadds an 12. 3% contribution as an em ployer's m atch. Contributions of participating slate agencies are pooled w ithin the System to fund accrued benefits w ith contribution ra tes approved by the Louisiana Legislature. The D istrict's contributions to the 14

19 AT C IIA FAI2~YA BASIN LEVEE D IST RICT NOTES TO TItE FINANCIAL STATEM ENTS (CO NTINUIH ) JUNE 30,2000 System for the },ears ended June 30,2000,1999,and 1998,w ere $191,517,$185,026,and $167,134,respecti~,cly,equalIo the required contributions for each year. NO TE 9 -LITIGATIO N AN D CI2klM S The l)jstrictjs m voh'ed in tw o law suits and have m ade no provisions for loss contingencies. It is the opinion c.f legal counselthat there is presently little probability of any liability to the D istrictthatcould rcsuh in an)'m onetart loss. N O TE 10 -FE1)ERAL FIN A N C IA l.assista N C E The Districtdid notreceive any federalfinancialassistance forthe fiscalyears ended June 3(I 2000 and N O TE 11 -C O M PF~N SAT IO N PAll)TO BO ARD M E'M BERS The per diem paym ent~ presented below are authorized by l~m isiana Revised Statute 38:286 and arc presented in com pliance w ith H ouse Concurrent Resolution No. 54 of the 1979 Session ofthe lxm isiana Legislature. Board Presidents are authorized up to a salary of $1,000 perm onth or$12,000 forthe },ear,in lieu of perdiem Salaries: W ayne O rillion $ 12,092 $ 12,046 perd iem : G erald Alexander EbertBenoit Ferdi~la lid B reaux Ray J,Brignac M erlin D upre M ark Engem ann M ike M aranto l~rlj.m athem e G ene Seneca Johnny Settoon C hester L.Sim on T.M utt),tillm an Brian W illis 2,700 $ 2,700 1,575 2,700 2,175 1,800 2,325 2,625 2,700 1,800 2,700 1,575 2,025 2,700 2,700 2,55(I 2,700 1,725 2,475 2,700 2,700 2,475 2,250 2,700 1,650 1,575 15

20 O TH ER REPO RTS REQ UIRED BY G O VERN M EN T A UD ITIN G STA N D A RD S The follow ing pages contain reports on internal controlstructure and com pliance w ith law s and regulations required by G overnm ent A uditing Standards, issued by the C om ptroller G eneralof the U nited States. The reporton internalcontrolstructure is based solely on the audit of the financialstatem ents and includes,w here appropriate,any reporta ble conditions and/orm aterialw eaknesses. The reporton com pliance w ith law s and regulations is,likew ise, based solely on the auditofthe presented financialstatem ents and presents,w here applicable, com pliance m atters thatw ould be m aterialto the presented financialsta tem ents. 16

21 an d P.O.B ox 158 D enham Springs,LA / Fax:225/ PresidentD r. B aton Rouge,LA / Fax:225/ IN D EPEN D EN T A U D IT O RS'R EPO RT O N C O M PLIA N C E A N D O N IN T ERN AL C O N T RO L O V ER FIN A N C IAL R EPO RTIN G BA SED O N A N A U D IT O F G EN ERAL PU RPO SE FIN A N C IA L STA TE M EN T S PERFO R M ED IN A C C O R D A N C E W IT H G O VERN M EN T A UD ITIN G STAN D A RD S Board of Com m issioners of Atchafalaya Basin Levee D istrict Slate of Louisiana PortAllen,Louisiana W e have audited the generalpurpose financialstatem ents of the AT C I1AFA IA,YA BASIN LEVEI'~ I)ISTRICT (the "District"),a com ponentunitofthe State oflouisiana,asof June 30,2000 and 1999,and forthe years ended June 30,2000 and 1999,and have issued our reportthereon dated July 26,2000. W e conducted ourauditin accordance w ith generally accepted auditing standards, the standards applicable to financial audits conta ined in G overnm ent Auditing Standards,issued by the C om ptroller G eneralofthe U nited Sta tes,and the Louisiana G overnm entala uditg uide. Com p liance As partofobta irdrlg reasonable assurance aboutw hetherthe D istrict's financialsta tem ents are fi'ee of m aterialm issta tem ent,w e perform ed tests of its com pliance w ith certain provisions of law s,regulations,contra cts and grants,noncom pliance w ith w hich could have a direct and m aterialeffect c.n the determ ination offinancialsta tem entam ounts. H ow ever,providing an opinion on com pliance w ith those provisionsw as riotan objective ofourauditand,accordingly,w e do notexpress such an opinion. The results of our tests disclosed no insta nces of noncom pliance thatarc required to be reported under G overnm enta ud iting Standards. InternalControlOver FinancialReporting In planning and perform ing our audit, w e considered the D istrict's internal control over financialre porting in order to determ ine ourauditing procedures for the purpose ofexpressing our opinion on the financial sta tem ents and not to provide assurance on the internal control over financial reporting. O ur consideration of the internal control over financial reporting w ould not necessarily disclose all m atters in the internal control over financial reporting thatm ightbe m aterialw eaknesses. A m aterialw eakness is a condition in w hich the design or operation of one or m ore of the im ernalcontroleom poner~ts does notreduce to a relatively low levelthe risk thatm issta tem ents in am ounts thatw ould be m aterialin relation to the financialstatem ents being audited m ay occurand notbe detected w ithin a tim ely period 17

22 by em ployees in lhe nom ~al course of perform ing their assigned functions. W e holed no m atters involving the internal control over financial reporting and its operation that w e consider so be m aterialw eaknesses. This reportis intended for she inform ation of m anagem entand the lx.'gislative Audilor forthe State of Louisiana. ltow ever,this report is a m aster of public record and its distribution is nol lim ited. ~~r0!tft.chusle Certified Public Accountant.APAC l& t,erl!ta.le~all Certified Public Accountant,luly 26,

23 A T C H A FA LAYA BA SIN LEVE E D IST RIC T SC H E D U LE O F FIN D IN G YEARS EN D ED JUN E 30,2000 AN D 1999 A. SU M M A RY O F A u I)rI"RESU LT S T he auditors'report expresses an unqualified opinion on the general purpose financialstatem ents of Atchafalaya Basin Levee D istrict. 2 No reportable conditionsw ere disclosed during the auditof the generalpurpose financialstatem ents. N o instances of noncom pliance w ere disclosed during the audit of the general pu rpose financialstatem ents of Atchafalaya Basin Levee D istrict. 4. T here:w ere no federalaw ards received by Atchafalaya Basin Levee D istrict B. FIN D IN G --I:IN A N C IA L STAT EM EN T S A U D IT 19

24 A T C H A FA I~ YA BA SIN LEVE E D IST R IC T R ESO LU T IO N O F PRIO R Y EA R A U D IT FIN D IN G YEARS EN D ED JUN E 30,1998 AN D 1997 R ep ortable C on dition 98-1 Violation of Investm entact R ecom m endation In January 1998,w e recom m ended to the Board that they adopt an Investm ent Policy that conform s to I~SA-R.S.33:2955. A ction Take*l The Board adol)ted an Investm entpolicy in JanuarT

25 SUPPLEM ENTAL INFO RMATIO N REQ UIREI)BY STA TE O F LO U ISIAN A D M SIO N O F A D M IN IST RA T IO N O FFIC E O F STA T EW ID E REPO RT IN G A N D A C C O U N T IN G PO LIC Y The follow ing pages contain a report on the D istrict's Annual Financial Report prepared in accordance w ilh the requirem ents of lhe I)ivision of Adm inistration, O ffice of Slatew ide Reporting and Accounting Policy. 21

26 P.O.Box 158 D enham Springs,LA / Fax-:225/ PresidentD r. Baton Rouge,L~ / Fax:225/ IN D EPEN I)EN T A U D IT O R S'REPO RT O N A N N UA L FIN AN C IAL R EPO RT T O T H E D IV ISIO N O F A D M IN IST RA T IO N O FFICE O F STA TEW ID E R EPO R TIN G AN D A C C O U N T IN G PO LICY Board of C ol~nm issioners of A tchafalaya B asin Levee D istrict State of Louis:iana PortAllen,Louisiana O urreporton the auditofthe generalpurpose financialstatem ents of ATC ItAFAIA YA BASIN LEVEE D ISTRICT asofand for the yearsended June 30,2000 and 1999,appearson Page 1. That auditw as m ade for the purpose of form ing an opinion on the generalpurpose financial statem ents taken as a w hole. The A nnual Financial Report is presented for purposes of additional analysis and is not a requ ired part of the general purpose financial statem ents. Such inform ation hasbeen subjected to the auditing procedures applied in the auditofthe general purpose financial statem ents, and,, in our opinion, is fairly stated in all m aterial respects in relation to the generalpurpose financialstatem ents taken as a w hole Certified Public Accoun tant,a PA C C& -~,Z/eM._~-~oj~ / Certified Public A ccountart! July 26,

27 STA TE!O F LO U ISIA NA A tchafalaya Basin Levee D istrict A nnualfinancialstatem ent Forthe YearEnded June 30,2000 C O NTENTS 'Transm ittalletter Statem ent Afidavits G eneralpurpose FinancialStatem ents Com bined Balance Sheet-A lfund Types and AccountG roups A G overnm entalfunds Com bined Statem entofrevenues,expenditures and C hanges in Fund Balances,A lg overnm entalfund Types and Expendable TrustFunds C om bined Statem entofrevenues,expenditures and C hanges in Fund Balances,Budgetand A ctual-g eneraland SpecialRevenue Fund Types B C Proprietary Funds Com bined Statem entofrevenues,expenses and C hanges in Retained Earnings/Fund Balances -A lproprietary and Non-Expendable TrustFunds Statem entofc ash Flow s -A lproprietary and Non-Expendable TrustFunds D E Notes to the FinancialStatem ents Schedule Schedule ofperdiem Paid Board M em bers Schedule ofslate Funding Schedule ofexpenditures by Object Schedule ofsegm entinform ation Schedule offederalg rantactivity Supplem entalinform ation fornote C

28 S'iA TE O F:LO U ISIA NA A nnualfinancialstatem ent FiscalYearEnding June 30,2000 Atchafalaya Basin Levee District Division ofadm inistration O ffice ofstatew ide R eporting and Acc:ounting Policy P.O.Box Baton R ouge,louisiana Legislative A uditor P.O.Box Baton Rouge,Louisiana A FFIDA V IT Personaly cam e and appeared before the undersigned authority,w illiam C.Tyson,Executive Director ofa tchafalaya B asin Levee D istrictw ho duly sw orn,deposes and says,thatthe financialstatem ent herew ith given presents fairly the financialposition ofatchafalaya Basin Levee DistrictatJune 30,2009 and the results ofoperations forthe yearthen ended in accordance w ith policies and practices established by the Division ofadm inistration orin accordance with G enera ly Accepted Ac(-ounting Principles as prescribed by the G overnm entalaccounting Standards Board. Sw orn and subscribed before m e,this 30" day ofaugust,2000 Prepared by:debora Avants Title: Adm inistrative Specialist Telephone No.:(225) Date:A ugust30,2000

29 STATE O F LO UISIA NA A nnualfinancialstatem ent FiscalYearEnding June 30,2000 A tchafalaya Basin Levee D istrict [_30 0 Schedule No D ivision c,fa dm inistration O ffice ofstatew ide Reporting and Accounting Policy P.O.Box Baton Rouge,Louisiana Legislative A uditor P.O.Box Baton Rouge,Louisiana A FFIDA Vll Persona ly cam e and appeared before the undersigned authority,w illiam C."lyson,Executive Director ofa tchafalaya Basin Levee D istrictw ho duly sw orn,deposes and says,thatthe financialstatem ent herew ith given presents fairly the financialposition ofatchafalaya Basin Levee Di.~;trictatJune 30,2000 and the results oloperations forthe yearthen ended in accordance w ith policies and practices established by the Division ofadm inistration orin accordance w ith G enera ly Accepted A ccounting Principles as prescribed by the G overnm entala ccounting Standards Board. Sw orn and subscribed before m e,this 30t" day ofa ugust,2000. Prepared by:deborb Avants Title: A dm inistr~tive Specialist Telephone No.:(225) D ate:a ugust

30 STALE O F LO U ISIA NA ATCHAFALAYA BASIN LEVEE DISTRICT CO M BINED BA LA NC ["SHEE T - A LL FUND TYPES A ND A CC O U NT G RO U PS JUNE 30,2000 GOVERNM ENTAL FUND TYPE ASSETS AND OTHER DEEIITS Cash and cash equivalents Investm enl:s Receivables Due from prim ary governm ent Due from com ponentunits Oue from otherfunds Due from federalgovernm ent Notes receivable Prepaym ents Inventories Otherassets Restricted assets: Cash Investm ents Receivables Direct~eanoing lease paym enl:s receivable Property,plant,and equipment(eel:ofaccumulated depreciation) Otherdebits: Amountavailable fordebtservice Am ountto be provided forretirem entofgeneral long term debt GENERAL $ SPECIAL REVENUE $ CAPITAL PROJECT~ $ DEBT SERVICE TOTAL ASSETS AN[)OTHER DEBITS LIABILITIES,EQUITY,AND OTHER CREDITS Liabilities: Accounts payable and accruals Contracts and retainage payable Com pensated absences payable Duc~to prim ary governm ent Due l:o com ponentunits Due to otherfunds Due ~.o federalgovernm enf Deterred revenues Am ounts held in custedy ferothers Liabilities payable from restricted assets Obligations underca~itallease Notes payable Bonds payable Estimated liabilities forclaim s Oth erliabilities Totalliabilities 6f.147 3, $ (Continued) The accom panying notes are an integralpartofth is sf~tlem ent. Statem enta

31 PRO PRIETARY FU ND TY P[- ENTE RPRISE INTERNAL S_ E _ F!&V_Cj _:_ FIDUC IARY FUN[)TY PE ACCO UNT G RO UPS NON- GENERAL EXPENDABLE EXPENDABLE GENERAL LO NG TERM TRUST TR._ UST FIXED ASSETS D EBT TOTAL (MEMORANDUM ONLY) $ $ $ $ $ $ 173, ,000 28, ,889, , ,222 $ ~= $ ~ ~_ j~ , ~ 11,191,076 $ 61, ,222 $ $ 3,

32 STATE O F LO UISIA NA ATCHA FA LA YA BA SIN LEV EE DISTRICT CO M BINED BA LA NC E SHF:.ET - A LL FUND TY PES A N D A C CO UNT G RO UPS JLINE 30,2000 GOVERNM ENTAL FUND TYPE Equity and othercredits: Investm entin fixed assets Contributed capital Retained earnings: Reserved Unreserv ed $ G ENERAL SPECIAL REVENUE CAPITAL PROJECTS DEBT SERVICE F:und balances: Reserved fordebtservice Reserved forinventories Reserved forpension benefits Reserv ed forencum brances Reserved forconstruclion Otherreserv es Unreserv ed: Designated Undesignated(Deficit) Totalequity arid othercredits 6, "TOTAL LIABILITIES,EQ UITY,OTHER C RED ITS (Concluded) The accom panying notes are an integralpartofthis statem ent, Statem enta

33 PR IETARY FUN[) ENTERPR ISE N FERNAL ṢdlLR.[V_C E FIDUCIARY FUN[)TYPE NO N- EXPENDABLE EXPENDABLE TRUST ~FRUST ACCOUNT G RO UPS GENERAL G ENERAL LO NG TERM FIXED A SSETS D EBT TOTAL (MEMORANDUM ONLY) $ $ $ 4,889,598 $ $ 4,889,598 2,019,828 4,025, }= ~== } ~ S _ ~.S

34 STATE O F LO U ISIA NA ATCHAFA LA YA B ASIN LEVEE DISTRICT C O M BIN ED STA TEM t-'nt O F R EV EN U ES,EX PEN D ITU R ES,A N D C HA NG ES IN FU N D BA LA N C ES A LL G O VER N M ENTA L FUND TYPES A ND EXPEN DA BLE TRUST FU NDS Forthe year ended June 30,2000 REVENU ES Intergovernm entalrevenue.=; Taxes Use ofmoney and properly Licenses,perm its,end fees Other Tetalrevenues EXPENDITURES: Current: Generalgovernm ent Health and welfare Other tntergavernm ental Capitaloutlay Retirem entbenefits Debtservice; Principalretirem ent Interestand fiscalcharges Tetalexpenditures G OVERNM ENTAL FUND TYPE SPECIAL CAPITAL DEBI' G ENERAL REVENUE PROJECTS SERVICE $ 468,773 $ 2,396, ,726 3, ,442,087 2,932, , , $ $ FIDUCIARY FUND 'TYPE TOTAL EXPENDABLE (M EMORANDUM TRUST ONL~ 408,773 2,396, ,726 3, ,286 3,442,087 2,932, , ,697,694 E~CESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES --255, ,607 OTHER FINANCfNG SOUF~CES(USES): Paym ents to refunded bold escrow agent Bond proceeds Operating transfers in - prim ary governm ent Operating transfers out- prim ary governm ent Operating transfers in - com ponentunits Operating transfers out- com ponentunits Operating transfers in - other~u lds Operating transfers out- otherfunds Other Totalotherfinancing sources(uses) EXCESS(DEFICIENCY)OF RE!VENUES AND OIHER SO URCES OVER EXPENDITURES AN[)O TH ER U SES -255, ,607 FUND BALANCES AT BEGINNING OF YEAR Irlcrease(decrease)in reserve forinventodes 6,300,717 6,300,717 FUND BALA NCES AT END OF YEAR $ The accom panying notes ere arlintegralpartofthis statem ent. StaternentB

35 STATE O F LO UISIA NA ATC HA FA LA YA BA SIN LEVEE DISTRICT C O M BIN ED STA TEM ENT C)F R EV EN U ES,EX PEN D ITU R ES,A N D C HA NG ES IN FU N [;)BA LA N C ES A LL G O V ERN M ENTA L.FUND TYPES A ND EXPENDA BLE TRUST FUNDS Forthe yearended June 30,2000 REVENUES latergovernm entalrevenues Taxes Use ofm oney and property Licenses,perm its,and fees Other 378,979 2,444, ,585 3, ,763 G ENERAL FUND 408,773 $ 2,396, ,726 3, ,286 VARIANCE FAVO RA BL[-" (UNFAVORABLD 29,794-47,895-33, ,523 Totalrevenues EXPE NDITURES Personalservices "travel O perating services Professionalserv ices Deductions from ad velerem taxes Capitaloutlays 2,481,859 24, ,027 44,795 87, ,933 2,435,294 22, ,433 38,977 86, ,565 2,479 15,594 5,818 1, Totalexpenditures 3,91g, ,243 EXCESS(DEFICE NCY)C)F REVENUES OVER EXPEN D ITUR ES; --432, , ,507 OTHER FINANCING SOURCES(USES) Totalotherfinancing sources(uses) EXCESS(DEFICIENCY)OFREVENUES AND OTHER SOURCES OVER E~PENDITURES AND O'[HER USES , , ,507 Fund balance(deficit)atbeginning ofyear Adjustment Fund balance(deficit)atend ofyear 6,271,240 6,300, The accom panying notes are an integralpartofthis statem ent. Statem entc Calegorize expenditures according to Com m ission/district's chartofaccounts

36 BUD G ET SPECIAL REVE NUE FUNDS ACTUAL VARIANCE FAVO RABLE (UNFAVORABL~

37 STATE O F LO UISIA N A C O M M ISSIO N/DISTICT CO M BINED STATEM ENT O F R EV ENU ES,EXPENSES,A ND C HA NG ES IN RETA INED EA R NING S A LL PRO PRIETA RY A ND N O N-EX PEN DA BLE TRUST FUNDS Forthe yearended OPERA'IING REVENUES Intergovem m entalrevenues Taxes Use ofm oney and property Licenses,perm its,and fees Other 3otaloperating revenues $ PRO PRIETARY FUND TYPE ENTERPRISE internal SERVICE $ FIDUCIARY FUND TYPE NO N- EXPENDABLE TRUST TOTAL (MEMORANDUM ONLY) $ OPERATING EXPENSES Personalservices Contractualserv ices "Travel Operating Serv ices Supplies Professionalserv ices Adm inistrative Depreciation Bad debtexpense Retirem entbenefits Refunds O ther "[ota~operating expenses ape P-~kT LNG INCOME(LOSS) NON-OPERATING REVENUES(EXPENSES) Disposaloffixed assets Federalgrants interestrevenue Interestexpense Other(specify) Totalnon-operafing revenue(expenses) ncorle(ioss)before operating transfers OPE t:b~,"ling TRANSFERS Operating transfers in O perating transfers out Tolaloperating transfers NET INCOME(LOSS) Retained earnings(deficit)at beginning of year(asrestated) Retained earnings(deficit)atendofyear $ The accom panying notes arclan integralpartofthis statem ent. Statem entd $ $

38 STATE O F LO U ISIA N A CO M M ISSIO N/DISTICT STATEM ENT O F C A S FIFLO W S Forthe yearended Cash flow s from operating activities: Cash received from custom ers Cash paym ent:~to suppliers forgoods and services Cash paym ents to em ployees forserv ices Paym ents in lieu oftaxes Internalactivity-paym ents to otherfunds Claim s paid to outsiders Otheroperating revenues Netcash provided(used)foroperating activities Cash flow s noncapitalfinancing activities: Proceeds #ore sale ofbonds Principalpaid on bonds Interestpaid on bond m aturities Proceeds fron'lissuance ofnotes payable Repaym entofnotes payable Interestpaid on notes payable Operating grants received Donations received O perating transfers in - from otherfunds O perating transfers out- to otherfunds Netcash provided(used)fornoncapitalfinancing activities Cash flow s from capitalarid related 'Sr~ancing activities: Proceeds from sele ofbonds Pdnc?pafpaid on bonds IntereStpaid on bond m aturities Proceeds frem issuance ofnotes payable Repaym entofnotes payable Interestpaid on notes payable Acquisition/construction ofcapitalassets Proceeds from sale ofcapitalassets Capitalcontributions Netcash provided(used)forcapitaland related financing activities Cash flaw s from investing activities: Purchases ofinvestm entsecurities Proceeds from sale ofinvestm entsecurities Interestand dividends earned on investm entsecurities Netcash pruvided(used)forinvesting activlties Netincrease(decrease)in cash and cash equivalents Cash and ca sh equivalents atbeginning ofyear Cash and cash equivalents atend ofyear The accom panyin.q notes are an integratpartofthis statement, (Continued) Statem ente

39 S TA TE O F LO U ISIA N A C O M M I!.~SIO N/D ISTICT STATEM ENT O F CA S H FLO W S Forthe yearended Reconciliation ofoperating Income(Loss)to Net(;ash provided (used)by operating activities Operating income (loss) Adjustmentsto reccmcile operating income(loss)to netcash provided by O perating activilies Depreciation Provision forunco lectible accounts Changes in assets and liabilities: (Increase)decrease in accounts receivable (Increase)decrease in due from otherfunds (Increase)decrease in prepaynlents (Increase)decrease in inventories (Increase)decrease in otherassets Increase(decrease)in accountspayable Increase(decrease)in accrued payroland related Increase(decrease)in annualleave payable Increase(decrease)in due to otherfunds Increase(decrease)in deferred revenues Increase(decreas~)inotherliabilities Netcash provided(used)by operating activities Schedule ofnonc;a!sh investing,capitaland Financing Activities Borrowing uretercapitallease Contributions offixed assets Purchase ofequipm enton account Assettrade-ins Other(Specify) (Concluded) The accom panyh g notes are an integralpartofthis financialstatem ent. Statem ente

40 STATE O F LO UISIA NA ATCHA FA LAYA EIA SIN LEV EE DISTRICT Notes to the FinancialStatem ents Forthe YearEnded June 30,2000 NTRO DUCTIO N The Atchafalaya Basin Levee Districtw as created by the Louisiana State Legislature underthe provisions oflouisiana Revised Statute 38:291. The fo low ing is a briefdescription ofthe operations ofatchafalaya Basin Levee Districtw hich includes the parish/parishes in w hich the Districtis located: Its Com m issioners are appointed by the GovernorofLouisiana. "]-he Districtincludes a lorportions ofthe following parishes:ascension,assum ption,iberia,ibervile,pointe Coupee,St.Landry,St.M artin,st.m ary,and W estbaton Rouge. The Districtprim arily provides flood protection forthose areas in the District.The Board oflevee Com m issioners ofthe Atchafalaya Basra Lew =.e Districtadm inisters the operations and responsibilities ofthe Districtin accordance with the provisions oflouisiana Revised Statute 38:304. A, SUM M ARY O F SIG NIFICA NT ACCO UNTING PO LICIES 1. Basis ofpresentation In Aprilof1984,the FinancialAccounting Foundation established the G overnm entalaccounting Standards Board (GASB)to promulgate generaly accepted accounting principles and reporting standards with respectto activities and transactions ofstate and tocatgovernm entalentities. The G ASB has issued e Codification ofg overnm ental Accounting and FinancialReporting Standards (GASB Codification).This codification and subsequentgasb pronouncem ents are recognized as generaly accepted accounting principles forstate and localgovernm ents.the accom gar~y[r~o~ ~ir~ar~c[atstatem er~ts have been prepared ~,n accordance w ith such principles. GASB Codification Section 2100 establishes criteria fordeterm ining the govern m entalreporting entity and has defined the governm entalreporting entity ofthe Com m ission/districtto be the State oflouisiana because the state exercises oversightresponsibility in thatthe governorappoints the com m issioners,and public service is rendered w ithin the state's boundaries. The accom panying statem entpresents only transactions ofthe Atchafalaya Basin Levee District,a com ponentunitofthe State oflouisiana.annualy the State oflouisiana issues a generalpurpose financialreportw hich includes the activity contained in the accom panying financialstatem ents.the generalpurpose financialreportis issued by the Louisiana Division ofadm inistration-o fice ofstatew ide Reporting and Accounting Policy and audited by the Louisiana Legislative Auditor. The accounts ofthe Districtare organized on the basis offunds and accountgroups,each ofw hich is considered a separate accounting entity. The operations ofeach fund are accounted forw ith a separate setofself-balancing accounts thatcom prise its assets,liabilities,fund equity,revenues and expenditures orexpenses,as appropriate. Revenues are accounted forin these individualfunds based upon the purpose forw hich they are to be spentand the m eans by w hich spending activities are contro led.the funds presented in the accom panying financial statem ents are described as fo lows: G eneralfund The G eneralfund is the generaloperating fund ofthe Atchafalaya Basin Levee District. Itis used to accountfor a lfinancialresources exceptthose required to be accounted forin anotherfund. SnecialRevenue Funds SpecialRevenue Funds are used to accountforthe proceeds ofspecific revenue sources thatare lagatly restricted to expenditures forspecified purposes

41 ST.~TE O F LO U S A N A A TC HA FA LAYA BA SIN LEV EE D ISTR IC T Notes to the FinancialStatem ents Forthe Year Ended June 30,2000 DebtService Fund The DebtService Fund is used to accountforthe accum ulation ofresources for,and the paym entof,generallongterm debtprincipal,interest,and related costs. CapitalProiects_.Fun_(~ CapitalProjectsFundsare used to accountforfinancialresources to be used forthe acquisition,construction,or im provements ofmajorcapitalfacilities otherthan those notreported inotherfunds. Enterprise Funda An Enterprise Fund isused to accountforoperations (a)thatare financed and operated in a mannersimilarto a private business enterprise -where the intentofthe governing body is thatthe costs (expenses,including depreciation)ofproviding goodsorservicesto the generalpublic on a continuing basis be financed orrecovered primarily throughusercharges;or(b)where the governing body hasdecided thatperiodic determination ofrevenues earned,expenses incurred,and/ornetincom e is appropriate forcapitalm aintenance,public policy,m anagem ent control,accountability,orotherpurposes. InternalServ ice Fund The InternalService Fund is used to accountforthe financing ofgoods orservices provided by one departm entto otherdepartm ents oragencies ofa governm entorto othergovernm ents,on a cost-reim bursem entbasis. Trustand _ Agẹnc:. y Funds Trustand Agency Funds are used to accountforassets held in a trustee capacity oras an agentforindividuals, private organizations,othergovernm ents,and/orotherfunds. These include Expendable Trust,Nonexpendable Trust,and Agency Funds. Nonexpendable TrustFunds are accounted forin essentia ly the sam e m anneras proprietary fund.';since capitalm aintenance is critical. Expendable TrustFunds are accounted forin essentialy the same m annerasgovernmentalfunds.agency Funds are custodialinnature (assets equalliabilities)and do not involve m easurem entofresults ofoperations. AccountG roups The tw o accountgroups are not"funds". They are concerned only w ith the m easurem entoffinancialposition,not w ith m easurem ent of results of operations. Account groups are used to establish accounting controland accountability forgeneralfixed assets and generallong-term debt. a. GeneralFixed AssetAccountGroup -Fixed assetsused in the governmentalfund type operations (general fixed assets)are accounted forin the generalfixed assetsaccountgroup,ratherthan in the governmentalfunds. b. G enerall:o _ ng.-term DebtAccountG roup -O bligations such as com pensated absences payable expected to be financed from governm entalfunds are accounted forin the generallong-term debtaccountgroup,notin the governm entalf~m ds. 4. Basis ofaccounting Basis ofaccounting refers to w hen revenues and expenditures,orexpenses as appropriate,are recognized and reported in the financialstatem ents. Basis ofaccounting relates to the tim ing ofthe m easurem ents m ade, regardless ofthe m easurem entfocus applied. The records are m aintained on the m odified accrualbasis of accounting utilizing the fo low ing practices in recording revenues and expenditures:

42 STATE O F LO UISIA NA ATC HA FA LAYA BA SIN LEVEE DISTRICT N otes to the FinancialStatem ents Forthe Y earended June Revenues --Ad valorem taxesand the related state revenue sharing (which is based on population arid homesteads in the parishes)are recorded in the yearthe taxes are assessed,to the extentthattheyare available to finance currentoperations. As provided by Louisiana Revised Statute (LSA-R.S.)47:1997(b),ad valorem taxes are assessed forthe calendaryear,become due on Decem ber31= and becom e delinquenton the subsequentjanuary 1=. The taxes are genera ly co lected in January,Febrary,M arch and Aprilofeach year. O iland gas royalties are recorded as rew.m ue w hen received,which is fourto five weeks afterthe production ofthe oilorgas. Substantialy a lotherrevenues are recorded w hen received. Expenditures.- Expenditures are genera ly recognized underthe m odified accrualbasis ofaccounting w hen the related fund liability is incurred,exceptforaccum ulated annualand sick leave, w hich is recognized w hen paid. Encum brances 6. TotalColum ns on Com bined Statem ents Totalcolum ns on the com bined statem ents are captioned Ivlem orandum O nly to indicate thatthey are presented only to facilitate financialanalysis. Data in these colum ns do notpresentfinancialposition or results of operation.,;inconform ity w ith genera ly accepted accounting principles. Neitheris such data com parable to a consolidation. B. B UDG ETA RY PRA CTIC ES The Atchaf~laya Basin Levee Districtutilizes the fo low ing budgetary practices The Districtprepares its budgetin accordance with Louisiana Revised Statute 38:318. The budgetis prepared on a m odified accrualbasis forthe GeneralFund. The budgetforthe fiscalyearended June 30, 2000 was adopted on M arch 3,1999,and subsequentam endm ents were adopted on M arch 1, 2000.Form albudget integration is em ployed as a m anagem ent controldevice during the year for the G eneral Fund. A l appropriations lapse atyear-end,and any encum brances outstanding atyear-end in the governm entalfunds are includeclin the nextyear's budgetw ith funds appropriated in thatyearto finance them.

43 STA TE O F LO UISIA NA A TC HA FA LA YA BA SIN LEV EE D ISTRICT Notes to the FinancialStatem ents Forthe YearEnded June 30,2000 C. DEPO SIT~;W ITtlFINA NCIAL INSTITUTIONS AND INVESTM ENTS 1. DEPO SITS W ITH FINANCIAL INSTITUTIO NS Forreporting purposes,deposits w ith financialinstitutions include savings,dem and deposits,tim e deposits,and certificates ofdeposit. Understate law the Atchafelaya Basin Levee Districtm ay depositfunds w ithin a fiscal agentbank selected and designated by the Interim Em ergency Board. Further,the Districtm ay investin tim e certificates ofdepositofstate banks organized underthe laws oflouisiana,nationalbanks having theirprincipal ofi ce in the state oflouisiana,in savings accounts orshares ofsavings and loan associations and savings banks and in share accounts and share certificate accounts offedera ly orstate chartered creditunions. Deposits in bank accounts are stated atcost,w hich approxim ates m arket. Understate law these deposits m ust be secured by federaldepositinsurance orthe pledge ofsecurities ow ned by the fiscalagentbank.the m arket value ofthe pledged securities plus the federaldepositinsurance m ustata ltim es equalthe am ounton deposit w ith the fiscalagent. These pledged securities are held in the nam e ofthe pledging fiscalagentbank in a holding orcustodialbank in the form ofsafekeeping receipts held by the State Treasurer.The deposits atjune ,were secured as fo lows: Deposits in Bank A ccounts per Balance Sheet Bank Balances: a. Insured (FDIC)orcolateralized with securities held by the entity orits agentin the entity's nam e b. Co lateralized w ith securities held by pledging financialinstitution's trust departm entoragentin the entity's nam e c. Unco lateralized,including any securities held forthe entity butn _ ' in the entity _.,.L.q.am e TotalBank Balances ~ot c._ 'd~b Deposits in Bank Accounts Certificates ofdeposit Other.(Ees_cr.i_b~ $.,====8 _, =4.,.,.1.6~ $=4,900,000 ~ $ Total The fo low ing is a breakdow n by banking institution,program,accountnum ber,and am ountofthe balances show n above:

44 ~TA TE O F LO UISIA NA A TC H A FA LA YA BA SIN LEV EE DISTRICT N otes to the FinancialStatem ents For the YearEEnded June 30,2000 Bankin.q In s _ ṭit _ l~!i_o n 1. Citizens Bank & Trust 2. H ibernia NationalBank 3. M id South NalionalBank 4 Pro, qram A m ount $ 1,143,084 3,300, AtJune 30,2000,the Distdcthasinvested $1,088,885 in the Louisiana AssetManagementPool(LAM P).This am ountis notevidenced by securities thatexistin physicalorbook entry form and are notcategorized. Cash in State Treasury Pe~y Cash INVESTM ENTS $ $ The Atchafalaya Basin Levee Districtdoes notm aintain investm entaccounts D. R EC EIVA B LE-'S AtJune 30,2000,the Districthad netreceivable balances,totaling $28,303,as folows C lass ofreceivable G eneral G rants: State Federal Ad valorum taxes 12,803 Rents,leases,and other Interestreceivable Totalreceivables, net $ 28~18 = 6 Governm entalfunds Special Debt Revenue Service $ $ Capital Projects Pro _ prietar~ ELn.te_~ Total $ $ 12, $ 28,186 E. DUE TOIDUEEFRO M AND TRA NSFERS Listby fund type the am ounts due from otherfunds detailed by individualfund atyourfiscalyearend T Ep~ L _ o!fund Nam e of Fund $ Totaldue from otherfunds

45 ~TA TE O F LO U ISIA NA A TC HA FA LA YA BA SIN LEV EE DISTR ICT N otes to the FinancialStatem ents Forthe YearEnded June notcapitalized. No depreciation has been provided on generalfixed assets. A lfixed assets are valued at historicalco:;t. A sum m ary ofchanges in generalfixed assets fo lows Beginning Balance at 7/1/1999 Additions Deletions Ending Balance at 6/30/2000 t.and Buildings 64,575 $ $ 64, Equipm ent 3,672, , Construction in progress Total 4,603,071 $ 573,486 nfrastructure is notdisclosed because a value has notbeen recorded oran estim ate has notbeen obtained G. INVENTO RIES G overnm en;:alfund inventories ofthe Districtare recorded atcostand recognized as an expenditure when purchased. H. RESTRICTIE'D A SSETS Notappficable PAYA BLES AtJune 30,2000,the Districthad payables totaling $61,147,asfolows Class ofpay _~ ~! G eneral Governm entalfunds Special Debt Ṛevenue Service Capital _ Projects Proprieta.T:y Enterprise _ Total Accounts payable "[axes payable Salaries payable Payro l deductionrs payable O therpayables: Bid bond deposits $ 1,685 $ 52,720 6, $ $ $ $ 1,685 52,720 6, Totalpayables $ _ 7 $ _ = $ ~ $=_ ~ 61,147 6

46 STA TE O F LO UISIA NA ATC HA FA LAYA BA SIN LEV EE D ISTR ICT Notes to the FinancialStatem ents Forthe YearEn ded June 30,2000 J. LEAVE 1. CO M PENSATED A BSENC ES The Atchafalaya Basin Levee Districthas the following policy on annualand sick leave Em ployees earn and accum ulate annualand sick leave atvarious rates depending on theiryears ofservice. The am ount of annualand sick leave that m ay be accum ulated by each em ployee is unlim ited Upon term ination,em ployees ortheirheirs are com pensated forup to 300 hours ofunused annualleave atthe em ployee's hourly rate ofpay atthe tim e ofterm ination. Upon retirem ent,unused annualleave in excess of 300 hours plus unused sick leave is used to com pute retirem entbenefits. The costofleave privileges,com puted in accordance with GASB Codification Secfion C60,is recognized as a currentyearexpenditure in the G eneralfund w hen leave is actua ly taken;itis recognized in the enterprise funds w hen the leave is earned. The costofleave privileges applicable to generalgovernm entoperations not requiring currentresources is recorded in the generallong-term obligations accountgroup. 2. CO M PENSATO RY LEAV E Em ployees w ho ere considered having non-exem ptstatus according to the guidelines contained in the Fair LaborStandards Actmay be paid forcompensatoryleave earned (K-time). Upon termination ortransferan em ployee wilbe paid forany tim e and one-halfcom pensatory leave earned and m ay orm ay notbe paid forany straighthour-for-hour com pensatory leave earned.com pensation paid wilbe based on the em ployees'hourly rate ofpay atterm ination ortransfer. The liability foraccrued payable com pensatory leave atjune 30,2000 com puted in accordance w ith the Codification ofg overnm entalaccounting and FinancialReporting Standards, Section C is estim ated to be $00. K. RETIREM ENT SYSTEM Substantia ly a lof the em ployees ofthe Com m ission/district are m em bers ofthe La State Em ployees RetirementSystem (System ),a costsharing multiple-employer,defined benefitpension plan.the System is a statewide public employee retirementsystem (PERS)forthe benefitofstate employees,which isadministered and controlled by a separate board oftrustees. Allfu l-tim e Districtem ployees are eligible to participate in the System. Benefits vestw ith 10 years ofserv ice. Atretirem entage,em ployees are entitled to annualbenefits equalto $300 plus 2.5% oftheirhighest consecutive 36 m onths'average salary m ultiplied by theiryears ofcredited service. Vested employees are entitled to a retirementbenefit,payable monthly forlife at(a)any age with 30 years of service,(b)age 55 with 25 years ofservice,or(c)age 60 with 10 years ofservice. In addition,vested em ployees have the option ofreduced benefits atany age with 20 years ofservice.the System also provides death and (~isability benefits.benefits are established oram ended by state statute. The System issues an annualpublicly available financialreport that includes financialstatem ents and required supplem entary inform ation forthe System.Thatreport m ay be obtained by writing to the State Em ployees Retirem entsystem, PostO fice Box 44213,BatonRouge,Louisiana ,orby caling(225) or(800) M em bers are required by state statute to contribute 7.5% ofgross salary,and the Districtis required to contribute atan actuaria ly determ ined rate as required by R.S.11:102. The contribution rate forthe fiscalyear ended June 3C),2000,decreased to 12.4% ofannualcovered payro lfrom the 13.0% and 12.4% required in fiscalyears ended June 30,1999 and 1998,respectively.The Com m ission/districtcontributions to the System forthe years ending June 30,2000,1999,and 1998,were $191,517,$185,026,and $167,134,respectively, equalto the required contributions foreach year. 7