Terrebonne parish Recreation D istrictn o.6. M ontegut,louisiana

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1 FinancialR eport Terrebonne parish Recreation D istrictn o.6 M ontegut,louisiana D ecem ber 31,1998 U nder provisions ofstate law,this report is a public docum ent. A copy ofthe report~as be~n subm itted to the audited, or r~view ed, er~tity and othera~propriate public offici~is. Tht-;~eport is ~v~ilable for public inspection at the Baton Rouge oilier"oftb.e Legislative A uditor and,w t~sr~ spp~opriate,at the office ofthe pa~;sh clerk of court. Release Date

2 T A B L E O F C O N T E N T S T errebonne Parish R ecreation D istrictn o.6 D ecem ber31,1998 Exhibits Page N um ber Introductory Section T itle Page Table of C ontents FinancialSection IndependentA uditor's R eport C om bined B alance Sheet-G overnm entalfund Typesand A ccountg roup A C om bined Statem entof R evenues,expendituresand C hangesin Fund B alances -G overnm entalfund Types C om bined Stalem cntof R evenues,expendituresand Changesin Fund B alances-b udgetand A ctual-g overnm entalfund Types N otesto FinancialStatem ents SpecialR eports O f C ertified P ublic A ccountants Reporton Com pliance and on InternalControlO verfinancialr eporting B ased on an A uditof G eneral-purpose FinancialStatem ents Perform ed in A ccordance w ith G overnm enta uditinu Standards Schedule of Findings R eportsb y M anagem ent Schedule of PriorY earfindings M anagem ent's C orrective A ction Plan C D

3 B o u rg e o is B e n n e tt N D E PE N D EN T A U D IT O R 'S R E PO R T 1"o the B oard of C om m issioners, Terrebonne Parish R ecreation D istrictn o.6, M ontcgut,louisiana. W e have audited the accom panying general-purpose financialstatem ents of Terrebonnc Parish Recreation DistrictNo.6 (the District),a componentunitof the Terrebonnc Parish Consolidated G ovcrm nent,asof and forthe yearended D ecem ber31,1998,aslisted in the table of contents. These general-purpose financialstatem entsare the responsibility of the D istrict'sm anagem ent. O ur responsibility isto expressan opinion on these general-purpose financialstatem entsbased on our audit. W e conducted ourauditin accordance w ith generally accepted auditing standards and the standardsapplicable to financialaudits contained in G overnm enta uditing Standards,issued by the C om ptrollerg eneralof the U nited States.Those standardsrequire thatw e plan and perform the audit to obtain reasonable assurance about w hether the financial statem ents are free of m alcrial m isstatem ent. A n audi'tincludes exam ining,on a "teslbasis,evidence supporting "the am ounts and disclosures in the financialstatem ents.a n auditalso includesassessing the accounting principlesused and significanlestim ates m ade by m anagem ent,as w ellas evaluating the overallfinancialslalem enl presentation. W e believe thatourauditprovidesa reasonable basis forouropinion. In ouropinion,the general-purpose financialstatem entsreferred to above presentfairly,in allm aterialrespects,the financialposition of the Terrebonne Parish R ecreation D istrictn o.6 asof D ecem ber 31, 1998,and the results of its operations for the year then ended in conform ity w ilh generally accepted accounting principles. In accordance w ith G overnm enta uditing Standards,w e have also issued ourreportdated M ay 19, 1999 on our consideration of the Terrebonne Parish R ecreation D istrictn o.6's internal controlover financialreporting and our tests of its com pliance w ith certain provisions of law s, regulations,contractsand grants. [z e }lounla,].a., M ay 19,!999 C ertified Public A ccountants 1340 W esl"hmnellllvd,suite4~0 P.O.Box 2168 }lotl)a,la Phone(504) Fax(504) Celtifed l'nblic AceounlanlsIConsulants A Limited I,iabilily Company P.O.Box New Orleans,I,A Ilelilage 10az~% Suite800 I'hoae(504) Fax(504) W eglsecond Sheet PO Ilox 1205 Ihibodaux,I,A ]'htlle(50~)44% 5243

4 E xhibita C O M BIN ED BA LA N C E SIlEET - G O V ER N M EN TA L FU N D T Y PE S A N D A C C O U N T G R O U P T errebonne Parish R ecreation D istrictn o.6 D ecem ber G overnm ental Fund Types Special G eneral R evenue A ccount Group G eneral Fixed A ssets Total (M emorandum Only) A ssets C ash Invesln'tenls R eceivables: Taxes State revenue sharing M iscellaneous Fixed assets $ 16, ,747 4, $ 18, , ,188 $ 34, , ,747 4,037 1, Totalassets $ 459,612 $ 118,372 $ 903,188 $ ,iabililies A ccountspayable and accrued expenditures D eferred revenue D ue to q'errebonne Parish C onsolidated G overnm ent $ 4, , $ 4, Totalliabilities 244, ,792 Equity and O ther C redits Investm entin generalfixed assets Fund balances-unreserved: D esignated forsubsequentyears expenditures U ndesignated 120,000 94, ,372 $ $ 903, , , ,192 Totalequity and othercredits 214, , ,188 1,236,380 Totalliabilities,equity and othercredits $ $ 118,372 $ $ See nolesto financialstalenlents

5 C O M BIN ED STA T EM EN T O F R EV EN U ES.EX PEN D IT U R ES A N D C ItA N G E S IN FU N D BA LA N C E S -G O V ER N M EN T A L FU N D T Y PES T errebonne Parish R ecreation D istrictn o.6 Forthe yearended D ecem ber31,1998 R evenues Taxes lntergovernm ental: State of Louisiana: State revenue sharin g Chargesforservices M iscellaneous-interest G eneral $ 214,675 $ 5,975 19,978 10,239 Special R evenue 5,275 Total (M emorandum Only) $ 214,675 5,975 19,978 15,514 Totalrevenues 250,867 5, ,142 E xpenditures Current: G eneralg overnm ent Ad valorem tax adjustment A d valorem tax deductions , T otalgeneralgovernm ent 11,915,915 C ulture and R ecreation Personalservices Suppliesand m aterials O therservices and charges R epairs and m aintenance Capitalexpenditures 89,566 18,465 39, ,641 5,758 24,835 89,566 18,465 39,417 50,476 5,758 Totalculture and recreation 178,847 24, ,682 Totalexpenditures 190,762 24, ,597 Excess(Deficiency)ofRevenues O ver E xpenditures F und B alances B eginning of year End of year 60,105 (19,560) 40, , , ,647 $ 214,820 $ 118,372 $ 333,192 See notes to financialstatem ents

6 C O M BIN ED ST A T EM EN T O F R EV EN U ES,EX PEN D IT U R ES A N D T errebonne Parish R ecreation D istrictn o.6 Forthe yearended D ecember31,1998 G eneral R cven n es Taxes lntergovem m ental: State of Louisiana: State revenue sharing Chargesforsmvices M iscellaneous-interest Budget $ 214,675 5,975 16,000 6,000 A ctual $ 214,675 5,975 19,978 10,239 V ariance Favorable (Unfavorable) 3,978 4,239 Totalrevenues 242, ,867 8,217 Expenditures C m rent: G encralg overn m ent: Ad valorem tax adjustment A d valm cm tax deductions , , T otalgeneralgovern m ent 12,000 11, C ulture and R ecreation: Personalservices Suppliesand m aterials O therservicesand charges R epairsand m aintenance C apitalexpenditures 91,495 21,000 34,500 18,000 10,000 89,566 18,465 39,417 25,64 1 5,758 1,929 2,535 (4,917) (7,641) 4,242 Totalculture and recreation 174, ,847 (3,852) Totalexpenditures 186, ,762 (3,767) Excess(Deficiency)of Revenues O ver E xpenditures Fund B alances B eginning of year End of year 55,655 60,105 $ 4, ,715 $ 214,820 Scc notes to financialstatem ents

7 E xhibitc B udget St)ecialRevenue A ctual V arlan ce Favorable (Unfavorable) 4,000 4,000 5,275 5,275 1,275 1,275 30,000 24,835 5,165 30,000 30,000 24,835 24,835 5,165 5,165 (26,000) (l9,560) 6, , ,932 $ 111,932 $ 118,372 $ 6,440

8 ExhibitD T ES T O FIN A N C IA L STA T E T crrebonne Parish R ecreation D istrictn o.6 D ecem ber31,1998 N ote 1 - SU M M A R Y O F SIG N IFIC A N T A C C O U N T IN G PO LIC IE S The accounting policies of the Terrebonne Parish R ecreation D istrictn o. 6 (the District) conform to generally accepted accounting principles(gaap)asapplied to governmental units.the GovernmentalAccounting StandardsBoard (GASP,)isthe accepted standard setting body forestablishing governm entalaccounting and financialreporting principles. rl'he follow ing is a sum m ary of significantaccounting policies: a) Reporting Entity TheDistrictisa componentunitof the Terrebonne Parish Consolidated Government(the Parish)and assuch,these financialstatem entswillbe included in the comprehensive annualfinancialreport(cafr)of the Parish fortheyearended December31,1998. T he D istricthas review ed allof itsactivitiesand determ ined thatthere are no po cntial com ponentunitsw hich should be included in itsfilm ncialstatem ents. b) Fund Accounting The D istrictuses funds and accountgroupsto reporton its financialposition and the resultsof itsoperations. Fund accounting isdesigned to dem onstrate legalcom pliance and to aid financial m anagem ent by segregating transactions related to certain govern m entfunctions oractivities. A fund isa separate accounting entity w ith a self-balancing setof accounts. A n account group,on the otherhand,is a financialreporting device designed to provide accountability forcertain assets and liabilitiesthatare notrecorded in the fim ds because they do notdirectly affectnetexpendable available financialresources.

9 ExhibitD (Continned) Note I -SUM M A R Y O F SIG NIFICANT A CCO UNTING PO LIC IES (Continued) b) Fund Accounting (ContinuEd) G overnm entalf unds G overnm entalfunds arc those through w hich the governm entalfunctions of the D istrictare financed.the acquisition,use and balances of the D istrict's expendable financialresourcesand the related liabilitiesare accounted forthrough G overnm ental Funds. The m easurem ent focus is upon determ ination of changes in financial position, rather than upon net incom e determ ination. The follow ing arc the G overnm entalfundsof the D istrict: G eneralfund -The G eneralfund isthe generaloperating fund of Ihe D islrict. Itisused to accountforallfinancialresourcesexceptthose thatarc required to be accounted forin anotherfund. SpecialR evenue Fund -The SpecialR evenue Fund isused to accountforthe proceedsof specific revenue sources(otherthan capitalprojects)lhatare legaly restricted to expenditures forspecified purposes. A ccountg roup A n accountgroup is used to establish accounting controland accountability. The D istrict'sa ccountg roup isasfollow s: G eneralfixed A ssetsa ccountg roup -Thisaccountgroup is used to account forfixed assetsnotaccounted forin proprietary ortrustfunds. c) BasisofAccounting B asis of accounting refersto w hen revenuesand expenditures are recognized in the accounts and reported in the financialstatem ents. B asis of accounting relates to the tinting of the m easurem entsm ade,regardless of the m easurem entfocusapplied. A ll G overnm ental Funds arc accounted for using the m odified accrual basis of accounting.theirrevenues are recognized w hen they becom e m easurable and available asnetcurrentassets. Ad valorem taxesand the related stale revenue sharing (Intergovernm entalrevenues)are recorded asrevenue in the period forwhich levied,thusthe 1998 property taxesw hich are being levied to finance the 1999 budgetw illbe recognized asrevenue in 1999.T he 1998 tax levy isrecorded as deferred revenue in the D istrict's

10 (Conlinued) Note 1 -SUM M ARY O F SIG NIFICA NT ACCO UNTING PO LIC IES (Continued) c) BasisofAccounting (Continued) 1998 FinaucialStatem ents. Charges forservices are recorded w bcn earn ed since they are m easurable and available. M iscellaneousrevenuesare recorded asrevenuesw hen received in cash by lhe D istrictbecause they are generally notm easurable untilactually received. Expendituresare generally recognized underthe m odifled accrualbasisof accounting w hen the related fund liability isincurred. d) UseofEstim ates The preparation of financialstatem ents in conform ity w ith generally accepted accounting principlesrequires m anagem entto m ake estim atesand assum ptionsthataffectcertain reported am ounts and disclosures. A ccordingly,actualresultscould differfrom those estim ates. c) O perating Budgetary Data Asrequired by LouisianaRevised Statute 39:1303,the Board of Comm issioners(the Board)adopted a budgetforthe District'sGeneralFund and SpecialRevenue Fund.The B oard,as allow ed by state law,does not obtain public participation in lhe budget process.a ny am endm entinvolving the transferof m oniesfrom one function to anofller orincreasesin expendituresm ustbe approved by the B oard. The D istrictam ended its G eneralfund and SpecialR evenue Fund budgetsonce during the year. A llbudgeted am ounts w hich are notexpended,orobligated through contracts,lapse atyearend. The G eneralfund and SpecialR evenue Fund budgetsare adopted on a basism aterially consistentw ith generally accepted accounting principles. f) A ccountsr eceivable The financialstatem entsforthe D istrictcontain no allow ance foruncollectible accounts. U ncollectible am ountsdue forad valorem taxes and otherreceivablesare recognized as bad debts atthe tim e inform ation becom esavailable w hich w ould indicate the uncollcctibility of the parlicularreceivable. These am ounts are no!considered to bc m atcrialin rclatiou to the financialposition oroperationsof the funds.

11 E xhibit!) (Conliuued) Note I -SUM M ARY O F SIG NIFICANT ACCOUNTING PO LICIES (Continued) g) Investm ents Investm entsconsistof certificates ofdeposilw hich are stated atcostand approxim alcs m arketvalue. h) Fixed Assets Fixed assetsused in governmentalfund type operations(fixed assets)are accounled for in the G eneralfixed A ssetsa ccountg roup,ratherthan in governm entalfunds. The A ccountg roup isnota fund. Itis concerned only w ith the m easurem entof financial posilion. It is not involved w ith the m easurem ent of results of operations. Public dom ain ("infrastructure")fixed assetsconsisting of certain improvementsotherthan buihlings including roads,bridges,curbsand gutters,streetsand sidew alks,drainage system sand lighting system s,are notcapitalized along w ith otherfixed assets.n o depreciation has been provided on fixed assets. A llfixed assets are valued athistoricalcostorestim ated historicalcostif actualhistorical cost is not available. Fixed assets w ith an estim ated historical cost am ounted to approxim ately $383,500 or43% of the totalg eneralfixed A ssetsa ccountg roup. i) Vacation and Sick Leave Em ployeesof the D istrictearn tw o w eeksof vacation afterone yearof service w ithout carryoverprovisions. V acation is recorded as an expense of the period in w hich paid. The D istrictdoesnotpay em ployeesduring sick leave.there w ere no m aterialam ounls of unpaid vacation atd ecem ber31,1998. j) Encum brances Encum brance accounting,underw hich purchase orders,contracts and olher com m ilm entsarc recorded in the fund generalledgers,isnotutilized by the D istrict. k) Fund Equity D esignated fund balance representstentative plansto use $60,000 of financialresources form aiorpoolrepairsand $60,000 of financialresourcesforthe replacem en!ofthe gym roof.

12 ExhibitD (Continued) Note 1 -SUM M A RY O F SIG N IFICANT ACCO UNTING PO LIC IES (Continued) I) M em orandum O nly-totalcolum ns 3"he totalcolum nson the general-purpose financialstatem ents are captioned "M em orandum O nly" because they do notrepresentconsolidated financialinform ation and are presented only to facilitate financialanalysis. The colum nsdo notprcscntinform ation thatreflects financialposition or results of operations in accordance w ith generally accepted accounting principles. Intcrfund elim inations have not bccn m ade in the aggregation of thisdata. N ote 2 - D E PO SIT S Louisiana state law allow sallpoliticalsubdivisionsto investexcessfundsin obligationsof the U nited States,certificates of depositof state ornationalbanks having theirprincipal office in Louisiana orany otherfederally insured investm ent. State law requiresdeposits(cash and certificatesofdeposit)ofallpoliticalsubdivisionsto bc fully collateralized atalltim es.a cceptable collateralization includesfi)ic insurance and the m arketvalue of securitiespurchased and pledged to the politicalsubdivision. O bligalions of the U nited Slates,the State of Louisiana and certain politicalsubdivisions arc allow ed as security for deposits. O bligations furnished as security m ustbe held by the politicalsubdivision orw ith an unaffiliated bank ortrustcom pany forthe accotultof the politicalsubdivision. C ash and depositsare categorized into three categoriesof creditrisk C ategory 1 includes deposits covered by federaldepository insurance orby collatera held by the D istrictorits agentin the D istrict'snam e. C ategory 2 includes deposits covered by collateral held by the pledging financia institution'strustdeparhncntorits agentin the D istrict's nam e. C ategory 3 includes deposits covered by collateral held by the pledging financial institution or its trustdepartm entoragentbutnotin the D istrict's nam e and deposits w hich arc uuinsurcd oruncollateralized. 10

13 E xhibitd (Continued) Note 2 - I)EPO S1TS (Continued) The yearend bank balancesof deposits and the carrying am ounts as show n on the com bined balance sheetare as follow s: B ank B alances C ategory 2 3 B ook B alance C ash hw cstm ents: C ertificatesof deposit $ 35, ,762 $ - $ _ : _ 32,360 $ 34, ,112 Totals $32,360 $339,817 A t D ecem ber 31, 1998,certificates of deposit in excess of the FD IC insurance w ere collateralized by securities held by unafi liated banks forthe accountof the D istrict. The Governm entalaccounting StandardsBoard (GASB),which promulgatesthe standardsfor accounting and financialreporting for state and localgovernm ents,considers these securities uneollateralized.even though the pledged securitiesarc considered uneollateralized under the provisions of G A SB Statem ent3,louisiana R evised Statute 39:1229 im posesa statutory requirem enton the custodialbank to advertise and sellthe pledged securities w ithin 10 days of being notifled by the depositorthatthe fiscalagenthasfailed to pay deposited fundsupon dem and. N ote 3 - PR O PE R T Y T A X E S Property taxes are levied each N ovem ber 1 on the assessed value listed as of the prior January 1 for allrealproperty,m erchandise and m ovable property located in the Parish. A ssessed values are established by the Terrebonne Parish A ssessor's O ffice and the State Tax C om m ission at percentages of actual value as specified by Louisiana law. A reevaluation of allproperty isrequired to be com pleted no lessthan every fouryears. The lastreevaluation w ascom pleted forthe listof January 1,1996. Taxesare due and payable l)ccem ber31w ith interestbeing charged on paym entsafterjanuary 1. Taxes can be paid through the tax sale date,w hich is the lastw ednesday in June. Propert ies forw hich the taxeshave notbeen paid are sold forthe am ountof the taxes,the tax rate forthe yearended Decem ber 31, 1998 was $7.83 per $1,000 of assessed valuation on properly w ithin Recreation D istrict N o.6 for the purpose of constructing, inaintaining and operating recreationalfacilitiesw ithin the D istrict. A s indicated in N ote lc,taxes levied N ovem ber 1,1998 are forbudgeted expendituresin 1999 and w illbe recognized asrevenues in 1999.

14 ExhibitD (Continued) N ote 4 - C H A N G E S IN FIX E D A SSET S A sm nm ary of changes in fixed assetsfollow s B alance January 1,1998 A dditions B alance D ecem ber 31,1998 Land and buildings M achinery and equipm ent O fi ce furniture,fixtures and equipm ent $808,750 77,002 11,678 $ 5,758 $808,750 82,760 11,678 Totals $897,430 $5,758 ~9~L '9 188 N ote 5 - C O M PEN SA T IO N O F B O A R D M E M BE R S The follow ing am ountsw ere paid to B oard M em bers forthe yearended D ecem ber31,1998 B oard M em bers R osalie Crochet IterbertD eroche M ontella G uidry W anda LeC om pte Shirley L evron Patsy N aquin M arcia Trosclair N um berof M eetingsa ttended PerD iem $6O 5O 70 7O 5O 7O * W anda LeC om pte w aived herrightto receive a perdiem N ote 6 - R ISK M A N A G E M E N T The D istrictis exposed to variousrisksoflossrelated to w orkers'com pensation;torts;theft of,dam age to and destruction of assets;errorsand om issions;naturaldisasters;and group health benefits forw hich the D istrictcarriescom m ercialinsurance and also participatesin the Parish's risk m anagem entprogram forgeneralliability,w orkers'com pensation,auto liability and group insurance.n o settlem ents w ere m ade during the yearthatexceeded the D istrict's insurance coverage. The D istrict'sprem ium s forgeneralliability are based on

15 ExhibitD (Continued) Note 6 -RISK M ANAG EM ENT (Continued) variousfactors such asoperationsand m aintenance budget,exposure and claim s experience. Tim prem ium s forw orkers'com pensation are based on a fixed percentage of payroll. The prem ium s forgroup insurance are based on fixed rates perem ployee. The prem ium s for auto liability are based on claim sexperience,vehicle type and m ileage.the Parish handles allclaim sfiled againstthe D istrict.the D istrictcould have additionalexposure forclaim s in excessof the Parish's insurance contracts asdescribed below : Policy C overage Lim its G eneralliability W orkers'com pensation G roup Insurance A uto Liability $6,500,000 Statutory $1,125,000 $6,250,000 C overage forclaim sin excessof the above stated lim itsare to bc fim ded firstby assetsof the Parish'srisk m anagem entintern alservice fund,$887,017 forgeneralliability,w orkers' com pensation and auto liability and $2,926,677 forgroup insurance atd cccm ber31,1997, then secondly by the D istrict. A td ecem ber31,1998,the D istricthad no claim sin excess of the above coverage lim its.

16 L FI

17 B o u r g e o is B e n n e t t R E PO R T O N C O M PLIA N C E A N D O N IN TER N A L C O N TR O L O V ER FIN A N C IA L R E PO R TIN G B A SED O N A N A U D IT O F G E N E R A L- PU R PO SE FIN A N C IA L STA T EM EN T S PER FO R M ED IN A C C O R D A N C E W IT H G O V ER N M E N T A U D IT IN G STA N D A R D S To tile B oard of C om m issioners, Terrebonne Parish R ecreation D istrictn o.6, M ontegut,louisiana. W e have audited the general-purpose financial statem ents of tile Terrebonnc l'arish Recreation DistrictNo.6 (the District),a componentunitof the Terrebonne Parish Consolidated G overn m ent,as of and for the year ended D ecem ber3 l,1998,and have issued our repor!thereon dated M ay 19, W e conducted our audit in accordance w ith generally accepted auditing standards and the standards applicable to financial audits contained in G overnm ent A uditing Standards,issued by the C om ptrollerg eneralof the U nited States. C om pliance A s partof obtaining reasonable assurance aboutw hether the D istrict's general-purpose financialstatem ents are free of m aterialm isstatem ent,w e performed tests of its com pliance w ilh certain provisions of law s,regulations,contractsand grants,noncom pliance w ith w hich could have a directand m aterialeffecton tbe determ ination of financialstatem entam ounts.h ow ever,providing an opinion on compliance with those provisionswasnotan objective of ourauditand,accordingly, w e do notexpresssuch an opinion.the resultsof our testsdisclosed no instancesof noncom pliance thatare required to be reported underg overnm enta uditing Standards InternalC ontrolo ver FinancialR eporting In planning and performing ouraudit,w e considered the D istrict's internalcontrolovcr financialreporting in orderto determ ine ourauditing procedures forthe purpose of expressing our opinion on the general-purpose financialstatem ents and notto provide assurance on the internal controloverfinancialreporting. O urconsideration of the internalcontrolover financialreporting w ould notnecessarily disclose allm atters in the internalcontroloverfinancialreporting thatm ight bc m aterialw eaknesses. A m aterialw eaknessisa condition in w hich the design oroperation of one 1340 W est"iunnelblvd.suitc430 P O Bo~ 2168 ]looma,i,a Pho.e(504) Fax(504)879-t949 (:citified Public AccountantsIConsulants A Limited I,iabitily CO lp3ly P.O.Box60600 New Ollemls, I,A IIclilageI'lav~,Suite800 Plone(504) Fax(504) W cslsecondslteel P.O.Box 1205 "1hibodaux,IA Plotle(50~

18 or m ore of the internalcontrolcom ponents does notreduce to a relatively low levelthe risk that m isstatem entsin am ountsthatw ould be m aterialin relation to the financialstatem entsbeing audited m ay occur and not he detected w ithin a tim ely period by em ployees in Om norm al course of perform ing theirassigned functions.w enoted no m attersinvolving the internalcontrolovcrfinancial reporting and itsoperationsthatw e considerto be m aterialw eaknesses. This reportisintendcd for the information of the B oard of C om m issioners,m anagem ent,the State of Louisiana and the Legislative A uditorforthe State of Louisiana and isnolintended to be and should notbe used by anyone otherthan these specified parties. X3,.~ zze Certified Public A ccountants n onm a,la., M ay 19,1999

19 SC H E D U L E O F FIN D IN G S T errebonne Parish R ecreation D istrictn o.6 Forthe yearended D ecem ber31,1998 Section lsum m ary of A uditor's R esults a)financialstatem ents Type of auditor's reportissued:unqualified Internalcontroloverfinancialreporting ~ M aterialweakness(es)identified? ~ Reportable condition(s)identified thatare not considered to be m aterialw eaknesses? yes yes X no X none rcporlcd N oncom pliance m aterialto financialstatem entsnoted? _ yes X no b)federalawards Terrebonne Parish R ecreation D istrictn o.6 did notreceive federalaw ards during the yearended 1)ccem ber31,1998. Section IIFinancialStatem entfindings N o financialstatem entfindingsw ere noted during the auditforthe yearended D ecem ber31,1998 Section 111FederalAw ard Findingsand Q uestioned Costs N otapplicable.

20 R E PO R T S B Y M A N A G E M EN T

21 SC H E D U L E O F PR IO R Y E A R FIN D IN G S T errebonne Parish R ecreation D istrictn o.6 Forthe yearended D ecem ber31,1998 Section 1 Internal C ontrol and C om pliance M aterial to tile G eneral-purpose Financial Statem ents InternalC ontrol N o m aterialw eaknesses w ere noted during the auditforthe yearended D ecem ber31,1997. N o reportable conditionsw ere reported during the auditforthe yearended D ecem ber31,1997 C om pliance N o com pliance findingsm aterialto the general-purpose financialstatem entsw ere noted during the auditforthe yearended D ecem ber31,1997. Section IIInternalC ontroland C om pliance M aterialto FederalA w ards Terrebonne Parish R ecreation D istrictn o.6 did notreceive federalaw ardsduring the yearended D ecem ber31,1997. Section 111M anagem entl etter A m anagem entletterw asnotissued ilconnection w ith the auditforthe yearended I)ccem ber

22 A N A G E M EN T ' E A C T IO N PL A N r1- Terrebonne Par~ lzl~ creation DistrictNo.6 B o u r g e o is B e n n e t t Forthe yearended D ecem ber31,1998 Section 1 Internal C ontrol and C om pliance M aterial to the G eneral-p urpose Financial Statem ents lntcrnalc ontro N o m aterialw eaknessesw ere noted during the auditforthe yearended D ecem ber31,1998. N o reportable conditionsw ere reported during the auditforthe yearended D ecem ber31,1998 C om pliance N o com pliance findingsm aterialto the general-purpose financialstatem entsw ere noled during the auditforthe yearended D ecem ber3 I,1998. Seetion 11 InternalC ontroland C om pliance M aterialto FederalA w ards Terrebonnc Parish R ecreation D istrictn o.6 did notreceive fcdcralaw ardsduring the ),carended 1)ccem ber31,1998. Section 111M anagem entletter A m anagem entlettcrw asnotissued in connection w ith the auditforthe yearended l)ccem ber3 l W esl"1unnelblwl,suilc430 PO Box 2168 ]IoHnl~,I.A Phone(504) Fax(504)879-19,19 Certified l'ublic AccountantsIConsultants A Limited I,iability Company P.O.Box New Orleans,LA IletilagePlaza,Suite800 P[iol~e(504) Fax(504) W estsecondsttccl PO.Box 1205 "lhibodanx,i,a Phol~e(504)