_ ~]_1,899~ (12,324) D ebtservice Fund Twelve. M onths Ended D ecem ber. E xhibit2 1,19 16,000 8,500 8,000 4,050 8,000 4,450 24,500 12,050 12,450

Transcription

1 E xhibit2 D ebtservice Fund Tw enty-four Tw elve M ouths M onths Ended Ended D ecem ber D ecem ber 3 1, :,1996 Twelve M onths Ended D ecem ber _ 3 _ 1,19 _ 95 $ $ $ ,000 8,500 24,500 8,000 4,050 12,050 8,000 4,450 12,450 24,506 ~ 12, _ 050 _ 12,456 _(24,2_2_ 3 ~ ) ~]_1,899~ _ (12,324)

2 E xhibit1 A ccountg rouos G eneral G eneral Total FJixed A ssets Long-Term D ebt (M emorandum Or,bg. 249,239 12,145 $ 29,123 88,500 29, ,239 12, ,239 77e90~0 64, 8.L5 _ $ $ 2,120 77,OQO _ $ 249, ,239 12, , ,627 $ 24~ 239 $ 77~oQo $ 473~747

3 C O M BIN ED BA LA N C E SH EET - Lafourche Parish TouristC om m ission D ecem ber 31,1996 G overnm entalfund Tvoes G eneral D ebt Service A ssets C ash luve:~tnlents D ue from other govern m entalunits O therassets Fixed assets A m om ltsavailable in D ebtservice Fund A m ountsto be provided for retirem entof generallong-tern 1debt L iabilities Totals Accountspayable and accrued expenditures Certificate of Indebtedness $ ,120 $ 12,145 $_ 12,145 Totalliabilities Fund Equity A nd O ther C redits Investm entin generalfixed assets Fund balances: Reserved fordebtservice U nreserved Totalfund equity and other credits $ 12,145 12,145 Totals $ 135,363 $ _ 12,145 See notesto financialstatem ents

4 B o u r g e o is B e n n e tt To the B oard of C om m issioners, Lafourche Parish TouristCom m ission Raceland,Louisiana. IN D EPEN D EN T A U D IT O R 'S R EPO R T W e have audited the accom panying generalpurpose financialstatem entsof the Lafourche Parish TomistCommission (thecommission),a componentunitof thelafonrcheparish Council,as of D ecem ber 31,1996,and for the tw enty-four m onth period ended D ecem ber 31,1996,and for the tw elve m onth periodsended D ecem ber31,1996 and 1995,aslisted in the table of contents. These generalpurp ose financialstatem entsare the responsibility of the Conunission'sm anagem ent. O ur responsibility isto expressan opinion on these generalpurp ose financialstatem entsbased on our audit. W e conducted our auditin accordance w ith generally accepted auditing standards and issued by the Com ptroller G eneralof the U nited States. Those standardsrequire thatw e plan and perform th e attditto obtain reasonable assurance aboutw hetherthe gcneralpurp ose financialstatem ents are f ee of m ateri alm isstatem ent. A n auditincludesexam ining, on a testbasis,evidence supporting the am ounts and disclosures in the generalpurp ose financial statcm ents. A n auditalso includes assessing the accounting principles used and significantestim ates m ade by m anagem ent, as w ell as evaluating the overall general purpose fnanciat statem ent presentation. W e beliew ;thatourauditprovidesa reasonable basisforouropinion. In ouropinion,the generalpurp ose financialstatem entsreferred to above presentfairly,in all m aterial respects, the fnancial position of the Lafourche Parish Tourist Com m ission as of D ecem ber31,1996,and the resultsof itsoperationsfor the tw enty-four m onth period then ended and for the tw elve m onth periods ended D ecem ber 31, 1996 and 1995 in conform ity w ith generally accepted accounting principles. In accordance w ith G overnm ent _ Auditing Standards.w e have also issued a reportdated January 31,1997 on ourconsideration of the Lafourche Parish TouristCom m ission'sinternalcontrol strn cture and a reportdated January 31,1997 on itscom pliance w ith law sand regulations. ZZ.d. C ertified Public A ccountants Thibodaux,La. January w estrunne~atv~,~u,te43'0 PO Box 2168 Houm,. LA 70361?hS8 PhQrle ib i3!i Fax Certified Public Account~ tsic anlurant$ A L,m,ted LiabilityCom pany 1 PO [~o~ New O re~ns. ~ Hertage Plaza Suite 800 ~'hone~504)03j-4949 ~ x~304~ W estsecond Street PC)Bo lh,booau~ ta Phone 1504)447 S243

5 2~/72 FiLE C O PY DO NOT S!".ND out (Xo[o;~lle ~:,~ssal'~ Cop~es from this Copy ahd PLACE i, R/I,t:K in FILE) F inancialr ep ort Lafourche Parish TouristCom m ission R aceland,l ouisiana D ecem ber 31, 1996 I 'dnoer provisions ofstate I,",w,thts report is a public docum ent. A copy ofthe rep:)rth~:s been subm ilted to 11-~ aud i'~ed, or reviuwed, entity ali(jo[l]{~:r,~i:.,piop~;a~,::.:,l,,:,li(: offici~as. The re~)o~:is m :ailr:;b!e for public inspecti9n at ti~e E;~ton Rouge ofice o1:the I.esis!etive Audi- ' - 2 J

6 Tw enty-four M onths Ended D ecem ber 31,1996 G eneralfund Tw elve M onths Ended D ecem ber 31,1996 Tw elve M onths Ended D ecem ber 31,1 _995 Excess(deficiency)of revenues overexpenditures(broughtforwmd) 86,422 83,042 L380 O therfinancing Sources(Uses) O perating transfersin O perating transfers out _ (26,280) _ ~ 13_,140) (13,!40) Totalotherfinancing sources(uses) (26,280) (. 13,140) _ (13,1,10) Excess(Deficiency)of RevenuesAnd Other Sources O ver E xpenditures and O ther U ses 60, ,902 (9,760) Fund B alances B egixm ing of period End of period 73, $ $ _73,101 $ 63~341 See notesto financialstatem ents

7 TA B L E _ ~)]~CO NTENTS L afourche Parish T ouristc om m ission D ecem ber31,1996 Page N um ber IN T R O D U C T O R Y SE C T IO N Title Page Table of C ontenls FIN A N C IA L SE C TIO N IndependentA uditor's R eport - C om bined B alance Sheet-A llg overnm entalfund Types and A ccountg roups 2 - Com bined Statem entof R evenues, Expendituresand Changesin Fund B alances-g overnm entalfund Types-G eneralfund and D ebtservice Fund 3 - Statem ents of R evenues, Expendituresand Changesin Fund B alances- B udgetand A ctual-g overnm entalfund Type -G eneralfund 4 - N otes to FinancialStatem ents 8 10 SPE C IA L R E PO R T S O F C E R TIFIE D PU B L IC A C C O U N T A N T S IndependentA uditor's R eporton the Intern alcontrolstructure B ased on an A uditof G eneralpurpose FinancialStatem entsperform ed in A ccordance w ith G ovenm lenta uditing Stan dards IndependentA uditor'sreporton Com pliance Based on an A uditof G eneral Purpose FinancialStatem entsperform ed in A ccordance w ith G overnm ent A uditing Standards 17 20

8 E xhibit3 Twelvemonthsended December31J _ V ariance Favorable Budget Actual ~ _nfavorable)_ 995 $ 75,000 7,000 1,900 83,900 $ 80,442 26,445 2,577 1, ,593 $ 5,442 19, !,_129 26,693 28,400, 1,200 29,960 2,500 4:3,800 29,804 4,835 23, (1,404) (635) 6,091 2,500 (~9o5) 1o~, (24,960) 3,380 28,340 (!:!A 4o) _(13,!_4o) (38,100) (9,760) 28,340 73,10 1 $ 3'~0O l 73, $ 28~340

9 L afourche Parish T ouristc om m ission For the tw enty-four m onth period ended D ecem ber 31, 1996 Tw enty -four M onths Ended D ecem ber G eneralfund Tw elve M onth s Ended D ecem ber Tw elve M onths Ended D ecem ber 3 l, _ 1995 R evenues Taxes-hotel/m otel Parish State M iscellaneous: Interest O ther $ 169, ,617 4,857 1,342 $ 89,349 84,172 2, $ 80,442 26,445 2,577 1,129 Totalrevenues ,593 E xpenditures C urrent: Econom ic D evelopm entand A ssistance Personalselwices M aterialsand supplies O ther services and charges R epairs an d m aintenance Capitalexpenditures 63,808 8,955 71,032 2, ,004 4,120 47,163 2, ,804 4,835 23,869 48,705 D ebtservice Principal Interest Totaleconom ic developm ent and assistance Totaldebtservice , ,213 T otalexpenditu res 200, ,213 Excess(deficiency)of revenues overexpenditures(carry forward) 86, ,380

10 B o u r g e o is B e n n e tt To tile Board of C om m issioners, Lafim rche Parish TouristC om m ission R aceland,louisiana. W e have audited the generalpurpose financialstatem ents of the Lafourche Parish Tourist Commission (thecommission),acomponentunitof thelafom'cheparish Council,Stateof Louisiana, asof D ecem ber 31,1996,and forthe tw elve m onth periodsended D ecem ber 31,1996 and 1995,and have issued ourreportthereon dated January 31,1997. W e conducted our audit in accordance w ith generally accepted auditing standards and Govern m entauditing Staodard_s,issued by the Com ptrollergeneralof the United States. Those standm dsrequire th atw e pl,'m and perform th e auditto obtain reasonable assurance abo utw hetherthe generalpurpose financialstatem entsare free of m aterialm isstatem ent. C om pliance w ith law s,regulations,conlracts and grants applicable to the C om m ission isth e responsibility of the C om m ission's m anagem ent. A s partof obtaining reasonable assurance about whetherthe generalpurpose finan cialstatem entsare fi'ee of m aterialm isstatem ent,w e perfora ted tests of the C om m ission's com pliance w ith certain pzovisions of law s,regulations,contracts and grants. However,theobjectiveof ourauditof thegeneralpurposefinancialstatementswasnotto providean opinion on overallcom plian ce w ith such provisions. A ccordingly,w e do notexpress such an opinion. The results of our tests disclosed no instances of noncom pliance that m e required to be reported herein under This reportisintended forthe inform ation of the Com m ission,m anagem ent,the Slate of Louisiana and the Legislative A uditor for the State of Louisiana. H ow ever,thisreportisa m at'tcrof public record and its distribution is notlim ited. lz e Thibodaux,La., JanuaW 31, VVestTunnelgird, Suae430 PO gox 2168 Houm a.ka Phone i504~ Fa~ ~'~49 2O Ce~ifiedPublicIPO P~c,x60600 Certified Public A ccountants Atcoun~tsIConsultants/NewOrleansLA Al,rn~reOLlab,hcyCompany;er~tagePlaza,Su,ce80 Phone1504) b3x(5()4~83~909~ Pho,le(504) Wes(Seto,aS,~t POBox~205 Th,bodauxLA

11 Exhibit2 (Continued) Tw enty-four M onths Ended D ecem ber 31,1996 D ebtservice Fund Tw elve M onths Ended D ecem ber 3],1996 Tw elve M onths Ended D ecem ber 3 1,1995 (24,223) (11,899) ~ 12,3_ 24 _) 26,280 13,140 13,140 26, j 14o 13,14o 2,057 1, ,088!Q,90~4 _ 10~p88_ $ 12,145 $ 12~J45 $ 19~994

12 Lafourche Parish T ouristc om m ission For the tw elve m onth periodsended D ecem ber 31, 1996 and 1995 R evenues Taxes-hotel/m otel Parish State M iscellaneous: Interest O ther Totalrevenues Tw elve m onthsended D ecem ber Budget $ 94,000 87,500 2, A ctual $ 89,349 84,172 2, V ariance Favorable (Unfavorable) 183, ,014 _ (7,886) Expendiltures C HITCnI: Econom ic D evelopm entand A ssistance Personalservices M aterials and supplies O ther servicesand charges Repairs an d m aintenance Capitalexpenditures 35,000 7,000 58,700 3, ,004 4,120 47,163 2,862 4, ,880 11, ,037 Totaleconom ic developm ent and assistance 170, Excessof revenues overexpenditures 13, ,042 69,902 O ther Financing U ses O perating transfers out Excess(Deficiency)of Revenues Over Expenditures and O ther U ses Fund B ~tlances Beginning of period _ L13,140) _ (_13,1_40) ,902 69,902 End of peri od $ 63,341 $ $ See notesto financialstatem ents

13 E xhibit4 N O T E S T O F IN A N C IA L ST A T E M E N T S L afourche Parish T ouristc om m ission D ecem ber31,1996 N ote l - SU M M A R Y O F SIG N IFIC A N T A C C O U N TIN G PO L IC IES The accounting and reporting policiesof the Lafourche Parish TouristCommission (tile Comm ission) conform to generally accepted accounting principles as applicable to governm ents. The follow ing is a sum m ary of certain signifi cantaccounting policies: a) Reporting Entity The Com m ission isa com ponentunitof the Lafourche Parish Council Tile C om m ission has review ed allof its activities and determined th atthere are no potentialcom ponentunitsw hich should be included in itsfinancialstatem ents. b) Fund Accounting The governm entusesfundsan d accountgroupsto reporton itsfinancialposition and the results of its operations. Fund accounting is designed to dem onstrate legal com pliance and to aid financialm anagem entby segregating tran sactions related to certain governm entfunctionsoractivities. A fund isa separate accounting entily w ith a self-balan cing setof accounts. A n account group, on the other han d, is a finan cial reporting device designed to provide accountabiliṭy forcertain assetsand liabilities thatare notrecorded in the fundsbecause they do notdirectly affectnetexpendable available financialresources. G overnm entalfunds G overnm entalfunds are those through w hich m ostgovernm entalfunctions of the C om m ission are financed. The acquisition,use and balances of the C om m ission's expendable,finan cialresourcesand the related liabilitiesare accounted for through G overnm entalfunds. The m easurem entfocusisupon determ ination of changesin financialposition,rather than upon netincom e determ ination.the follow ing are th e G overnm entalfundsof the C orm nission: 10

14 Exhibit4 (Continued) Note1 - SUM M ARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b) Fund Accounting (Continued) G eneral Fund - The G eneral Fund is the general operating fund of tile Com m ission. Itisused to accountfor allfinancialresources exceptth ose thatare required to be accounted for in another fund. D ebt Service Fund - The D ebt Service Fund is used to account for the accum ulation of resources for, and the paym ent of, general long-term debt principal,interestand related costs. A ccountc,roups The G eneralfixed A ssets A ccount Group is used to accountfor fixed assets not accounted for in proprietary or trustfunds. The G enerallong-term D ebta ccount G roup isused to accountforgenerallong-term debtand certain other liabilitiesthat are notspecific liabilitiesof proprietary ortrustfunds. c) Basisof Accounting A llg overu m entalfundsare accounted for using the m odified accrualbasisof accounting. Theirrevenues are recognized w hen th ey becom e m easurable and available asnet currentassets.h otel/m otelsalesan d use taxesar e considered "m easurable"when in the hands of the m erchantsand are recognized asrevenue atthattim e. Interestincom e on investm entsisrecorded asrevenue w hen the investm entshave m atured and the incom e isavailable. M iscellan eousrevenuesare recorded asrevenuesw hen received in cash by tile C om m ission because they are generally notm easurable untilactually received. Expendituresare generally recognized undertire m odified accrualbasisof accounting w hen the related fim d liability is inctnred. A n exception to thisgeneralru le is principal and intereston generallong-term debtw hich isrecognized w hen due.

15 E xhibit4 (Continued) Note 1 - SUM M ARY (:IF SIGNIFICANT ACCOUNTING POLICIES (Continued) d) Operating Budgetary Data Asrequired by LouisianaRevised Statute39:1303,theBoard ofcommissioners(the Board)adopted a budgetforthecomm ission'sgeneralfund.theboard,asallowed by state law,doesnotobtain public participation in file budgetprocess. A ny am endm ent involving the transfer of m onies from one function to another or increases in expenditures m ustbe approved by the B oard. The C om m ission am ended its budget tw ice during the year. A llbudgeted am ountsw hich are notexpended,orobligated th rough contracts,lapse atyear end. The G eneralfund budgetis adopted on a basism aterially consistentw ith generally accepted accounting principles. e) Bad Debts The generalpurpose financialstatem entsforthe Com m ission contain no allow ance for bad debts.uncollectible am oun tsdue for taxesand otherreceivablesare recognized as bad debts at th e tim e inform ation becom es available w hich w ould indicate the uncollectibility of the particularreceivable. These am ounts are notconsidered to be m aterialin relation to the financialposition or operationsof the funds. f) Investments Investm entsare stated atcost,w hich approxim atesm arket g) GeneralFixed Assets Fixed assetsused in governmentalfund type operations (generalfixed assets)are accounted forin the G eneralfixed A ssetsa ccountg roup,rather th an in governm ental funds.the A ccountgroup isnota fund.itisconcerned only w ith th e m easurem entof financialpo,;ition. It is not involved w ith the m easurem ent of results of operations. Public dom ain ("infrastructure")generalfixed assetsconsisting ofcertain improvementsotherthan buildings,including roads,bridges,curbsan d gu ters,streetsand sidew alks,drainage system sand lighting system s,are notcapitalized along w ith othergeneralfixed assets. N o depreciation has been provided on generalfixed assets. 12

16 E xhibit4 (Continued) Note! - SUM M ARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) g) GeneralFixed Assets(Continued) A ll fixed assets are valued at historical cost or estim ated historical cost if actual historicalcostis notavailable. D onated fixed assetsare valued attheir estim ated fair m ar ketvalue on the date donated. h) Long-Term Debt The accounting and reporting treatm entapplied to the long-term debtassociated w ith a fund are determ ined by itsm easurem entfocus. Allgovernm entalfundsare accounted foron a spending or "financialflow "m easurem entfocus. Thism eansthatonly cun ent assets and current liabilities are generally included on th eir balance sheets. Their reported fund balance (netcmrentassets) is considered a measure of "available spendable resources". G overnm ental Fund operating statem ents present increases (revenuesand otherfinancing sources)and decreases(expendituresand otherfinancing uses)in netcurrentassets.accordingly,th ey are said to presenta summary of sources and usesof "available spendable resources"during a period. Long-term debtexpected to be financed from govern m entalfundsare accounted forin tile G enerallong-t erm D ebta ccountg roup,notin the govern m entalfunds. Tile Long-Term D ebta ccountg roup is nota "fund". Itis concerned only w ith the m easurem entof financialposition. Itis notinvolved w ith the m easurem entof results of operations. i) Vacation arid Sick Leave The Com m ission hasno w ritten policy on vacation and sick leave in place j) Encumbrances Encum brance accoun ting, under w hich purchase orders, contracts an d other com m itm ents are recorded in th e fund general ledgers, is not utilized by th e C om m ission. k) TotalColum n on Combined Statem ents-overview The totalcolum n on the com bined statem ents-overview is captioned m em orandum only to indicate thatitispresented only to facilitate financialanalysis. D ata in th iscolum n doesnotpresentfin an cialposition orresults of operations,in conform ity w ith generally 13

17 Exhibit4 (Continued) N ote 4 - C ItA N G E S IN G EN E RA L FIX ED A SSE TS A sum m aly of changesin generalfixed assetsfollow s Consn'uction Ofi ce Furniture LO P _ rqgress B uildings and Equipm ent Total Balance,Janualy 1,1995 A dditions D eletions/tr,'m sfers $ 4,523 42,097 ~ 6_2_Q) $172,784 46,620 $20,604 6,108 $197,911 48,205 Balance,D ecem ber 31,1995 A dditions D eletions 219,404 2,580 26,712 2,242 _ 1, ,116 4, Balance,1-)ecember31,1996 $ $221,984 $27,255 $249,239 C onstruction in.progress, w hich consisted of drainage im provem ents and a turnaround drivew ay forrv Cam pers,w ascom pleted during 1995 and included in the G eneralfixcd A ssetsa ccountgroup asbuildings. N ote 5 - L O N G -T E R M D E B T During 1993,the Com m ission issued $100,000 of Certificates of Indebtednessbearing interestata rate of 5.00% w hich ispayable through M arch 1, 2003 prim arily from excess reselwes accum ulated in prior years. The follow ing isa sum m my of changesin long-term debtof the C om m ission: Payable D ecem ber 31, 1994 PrincipalPaym ent Payable D ecem ber 31,1995 PrincipalPaym ent Payable D ecem ber31,1996 Certificates of Indebtedness Series 1994 $93,000 (8,000) 85,000 (8,000) $77~000 15

18 E xhibit4 (Continued) Note5 - LONG-TERM DEBT (Continued) The annualrequirem ents, including interest,of $14,375 to am ortize the long-term debt outstanding atd ecem ber 31, 1996 arc,'asfollow s: M am fiw Thereafter C ertificatesof Indebtedness $ 12,625 13,150 12,650 13,125 13,550 26,275 Total N ote 6 - C O M PEN SA T IO N O F B O A R D M E M BE R S A ssetforth in the C om m ission'sby-law s, the B oard serves w ithoutcom pensation N ote 7 - C O M M ITM EN T 16

19

20 This reportisintended for the inform ation of the C om m ission,m anagem ent, the State of Louisiana and the Legislative A uditor for the State of Louisiana. H ow ever,thisreportisa m ater of public record and itsdis~ bution isnotlim ited.

21 E xhibit4 (Continued) Note1 - SUM M A RY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) k) TotalColum n on Combined Stalements-Overview (Continued) accepted accounting principles. N eitheris such data com parable to a consolidation Interfund elim inationshave notbeen m ade in the aggregation of th isdata. N ote 2 - C A SH A N D IN V E STM EN T S Louisiana state law allow s allpoliticalsubdivisions to investexcessfunds in obligationsof the United States,certificatesof depositof state ornationalbankshaving theirprincipal office in Louisiana or any other federally insured investm ent. State law also requiresthatdepositsof al lpoliticalsubdivisionsbe fully collateralized atall tim es. A cceptable collateralization includes the FD IC insurance and the m arketvalue of securitiespurchased and pledged to the politicalsubdivi sion. Obligations of the U nited States,the State of Louisiana and certain politicalsubdivisionsare allow ed assecurity for deposits.o bligationsfurnished assecurity m ustbe held by th e politicalsubdivi sion orw ith an unafiliated bank oroustcom pany for the accountof the politicalsubdivi sion. D uring 1996 and 1995,the C om m ission's investm ents consisted solely of certificates of deposit. A td ecem ber 31,1995 file C om m ission's cash and investm entsw ere notin excess of the FD IC insurance lim it. AtD ecem ber31,1996,the Com m ission'scash an d investm entswere notadequately secured by pledged securitiesfor approxim ately $18,259. N ote 3 - D U E FR O M O T H E R G O V ER N M EN TA L U N IT S A m ountsdue flom other governm entalunits atd ecem ber 31,1996 for H otel/m oteltaxes consisted of the follow ing: State of Louisiana Lafourche Pari sh SchoolB oard Total $16,133 13,189 $

22 operation,an d w e assessed controlrisk in order to determ ine our auditing proceduresforthe purp ose of expressing our opinion on the generalpurpose fiuancialstatem ents and notto provide an opinion on tbe internalcontrolstalacture. A ccordingly,w e do notexpresssuch an opinion. W e noted a certain m aterinvolving the intern alcontrolstructure and itsoperation thatw e considerto be a reportable condition understandardsestablished by tile Am erican Institu te of Certified Public:A ccountants. R eportable conditions involve m aters com ing to our attention relating to significantdeficienciesin thedesign oroperation of theinternalcontrolstructurethat,in ourjudgment, could adversely affectthe entity's ability to record,process,sum m arize and reportfinancialdata consistentw ith the assertions of m anagem entin the generalpurpose financialstatem ents. C ondition - D aring out audit, w e noted tw o checks that w ere not recorded on the C om m ission's intern alfin ancialstatem entsand tw o checks thatw ere w ritten w ithoutproper originaltransaction docum entation. Proper intern alcontrolrequiresthatalltransactionsbe properly docum ented. Itw as also noted thatthe C om m ission paid late charges,finance chargesand salestax on som e of itsinvoices. R ecom m endation -W e recom m end thatthe C om m ission develop procedures th atw ould allow them to verify thatallexpenditureshave been recorded in their financialstatem ents and thatcash dislm rsem entsbe m ade only w ith the properdocum entation,which should be m aintained by the C om m ission. W e also recom m end thatallinvoices be paid in a tim ely m anner in orderto elin linate late chargesan d finance charges. A s a politicalsubdivi sion th e C om m ission isexem ptt~om salestaxes.properform sforth e exem ption should be filed w ith allvendors. R esponse -The C om m ission w illcontinue to verify allexpenditures and cash disbursem ents w illbe m ade only w ith proper doctunentation. The Com m ission w illm ake every attem ptto handle paym entof allinvoices in a tim ely m anner. A llvendors w illreceive propertax exem ptforms. A m aterialweaknessisa repolable condi tion hawhich the design or operation of one orm ore of the specific intern alcontrolslaucture elem ents does notreduce to a relatively low levelthe risk that enorsorinegularitiesin am ountsthatw ould be m aterialin relation to the generalpurp ose financial statem entsbeing audited m ay occur and notbe detected w ithin a tim ely period by em ployeesin the noj~n~lcourse of performing theirassigned functions. O ut"consideration of the intern alcontrolstructure w ould notnecessarily disclose allm atters in the intern alcontrolstructure thatm ightbe reportable conditions and,accordingly,w ould not necessar ily disclose allreportable conditionsthatare also considered to be m aterialw eaknesses as defined above. H ow ever,w e believe the reportable condition described above is nota m aterial w eakness. 18

23 B o u rg e o is B e n n e tt D _D_E_EK~DENT P A UDITO R 'S R EP_O RT O N TH E INTERNA L CO N TRO ST R U C T U R E B A SE D O N A N A U D IT O F G E N ER A l,piir Pf~,qE FIN A NC IA L STATEM ENTS P_F_._R FO R M ED IN A CCO RD A N C E W ITlt G O V ER N M EN T A I]D IT IN G ST A N D A R D S To theboard of Cowanissioners, Lafiaurche Parish TouristC om m ission, l~'.aceland,louisiana. W e have audited the generalpurp ose financialstatem ents of the Lafourche Parish Tourist Commission (thecommission),a componentunitof thelafourcheparish Council,Stateof Louisian a, asof D ecem ber 31,1996 and for the tw elve m onth periodsended D ecem ber 31, 1996 and 1995,and have issued ourreportthereon dated Janumy 31, W e have conducted our auditin accordance w ith generally accepted auditing standar dsand issued by the Com ptroller G eneralof the U nited States. Those standardsrequire thatw e plan and perform the auditto obtain reasonable assurance aboutw heth erthe generalpurp ose financialstatem entsare free of m aterialm isstatem ent. The m anagem ent of the Com m ission is responsible for establishing and m aintaining an internalcontrolstructure.infulfiling thisresponsibility,estimatesand judgmentsby managementare required to assessthe expected benefits and related costs of internalcontrolstructure policies and procedures.theobjectivesof an intern alcontrolstructureareto providemanagementwith reasonable, but not absolute, assurance that assets are safegum'ded against loss from in accordance with m anagem ent's authorization and recorded properly to perm itthe preparation of generalpurpose financialin accordance wilh generally accepted accounting principles.because of inherentlim itations in any intern alcontrolstxucture,errorsor ir egularitiesm ay neverthelessoccur an d notbe detected. Also,projection ofany (;valuation of the structure to future periodsissubjectto the risk that proceduresm ay becom e inadequate because of changesin conditionsorthatthe efectivenessof the design and operation of policiesand procedur esm ay deteriorate. In planning and performing our auditof the generalpurpose financialstatem ents of the Com m :ission forthe tw enty-four m onthsended D ecem ber 31, 1996,w e obtained an understanding of the intern alcontrolstructure. W ith respectto the internalcontrolstructure, w e obtained an understanding of the design of relevantpoliciesand proceduresan d whether they have been placed in 1340 W esttunnelbpvo Suite 4~0 PO Box 2168 Houma LA Ph~ne(504~ Fax A~ount~tsIConlultantl AL~milodLi~bihtvC~mp~ny CertifiedPublic/ Phoner504183I4949 He~,t~ePb~Sue~0 POBOx6060 NewOrleans.LA f:,x,s04$833 9O W estsecona St,(e~ Po Box b20s Thlbo0au~ IA 7O3O) 12CS Phone {504~ t