A SC EN SIO N PAR ISH SA LE S A N D U SE TAX A U T H O R ITY FIN A N C IAL STA TEM E N TS Y EA R E ND ED JUN E 30,2003

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Valentine Summers
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1 A SC EN SIO N PAR ISH SA LE S A N D U SE TAX A U T H O R ITY G O N Z A L E S,L O U ISIA N A FIN A N C IAL STA TEM E N TS Y EA R E ND ED JUN E 30,2003 Postlethw aite & N etterville www,pncpa.com

3 T A B L E O F C O N T E N T S IndependentAuditors'R eport 12 REQUIRED SUPPLEM ENTARY INFORM ATION PartI M anagem ent'sd iscussion and A nalysis B A SIC FIN A N C IA L STA TE M EN TS Fund FinancialStatem ents(ffs Statem entof Fiduciary A ssetsand Liabilities N otesto the FinancialStatem ents REQUIRED SUPPLEM ENTARY IFO RM ATION PartlI O thersupplem entalinform ation R eporton Com pliance and on InternalC ontrol O ver FinancialR eporting B ased on an A uditof Finan cialstatem ents Perform ed in A ccordance W ith Governm entauditing Standards

4 Postlethw aite & N ettervi le A ProfessionalAccounling Carporafion AssodatedOficesinPSncipalCitiesoflheUniledSlates EPE~DEN T AUD ITOR S'REPO R T Board of D irectors A scension Parish Salesand U se Tax Authority G onzales,lotfisiana W e have audited the accom panying generalpurpose financialstatem ents of the A scension Parish Sales and Use Tax Auth ority as of and for the year ended June 30,2003,as listed in the table of contents. These generalpurpose financialstatem ents are the responsibility of the A scension Parish Salesand U se Tax Authority 's m anagen aent. Our responsibility is to express an opinion on th ese generalpurpose financialstatem entsbased on our audit. W e conducted ourauditin accordance with auditing standardsgenerally accepted in the United Statesof Am erica and with the standards applicable to financial audits contained in Government Auditing Standards,issued by the ComptrollerGeneralof the United States.Those stan dardsrequire thatwe plan and perform the audi tto obtain reasonable assurance aboutwhether the financial statem ents are free of m aterialm isstatem ent. An auditincludes exam ining,on a testbasis,evidence supporting the am ounts an d disclosures in the financialstatem ents. An auditalso includes assessing the accounting principles used and significan testim atesm ade by m anagem ent,asw ellasevaluating the overallfinan cialstatem ent presenta tion.w e believe thatour auditprovidesa reasonable basisfor our opinion. In our opinion,the financial statem ents referred to above presen t fairly,in allm aterialrespects,the finan cialposition of the A scension Parish Sal es and U se Tax A uthority as of June 30,2003,and the results of its operations for the year then ended in conform ity w ith accoun ting principles generally accepted in the U nited Statesof A m erica. A s described in N ote 6 to the basic financial statem ents,the A scension Parish Sales an d U se Tax A uthority adopted the provisionsof G overnm entala ccountin g Standards B oard Statem entn o.34,basic Financial Statem entsand M anagem ent's D iscussion and AnalysisFor State and Local Governm ents; Statem entn o.37,basic FinancialStatem entsfor State and State and LocalGovernm ents:o m nibus;and Interpretation No. 6, Recognition and M easurement of Certain Liabilities and Expenditures in Governm entalfunds FinancialStatements,asof July 1,2002. Thisresultsin a chan ge in the form atand contentof the basic financialstatem ents. The m an agem ent'sdiscussion and analysisand budgetary com parison inform ation on pages 3 and 4 are nota required par tof the basic financial statem entsbutare supplem entary inform ation required by the Governm ental Accoun ting Standar ds Board. W e have applied certain lim ited procedures, which consisted principally of inquiresof m anagem entregarding the m ethodsof m easurem entand presentation of the required supplem entary information. H ow ever,w e did notauditthe inform ation an d expressno opinion to it St.PatrickSt. ~ P.O.Box 1190 ~ Donaldsonvile,LA ~ Tel: Fax:

5 In accordance w ith Governm enta uditing Standards,w e have also issued a reportdated N ovem ber 14, 2003 on our consideration of A scension Parish Sales and U se Tax A uthority's internal control over financialreporting and our testsof itscom pliance w ith certain provisionsof law s,regulations,contracts, an d grants.thatreportisan in tegr alpartof an auditperform ed in accordance w ith Governm entauditing Standardsand should beread in conjunctionwith thisreportin considering theresultsofouraudit. N o,zem ber 14,2003 2

6 ASC EN SIO N PAR ISH SA LE S A N D U SE TAX A U TH O R ITY G onzales Louisiana M A N A G EM EN T 'S D ISC U SSIO N AN D A N AL Y SIS A S O F JU N E The M anagem ent's D iscussion and A nalysis of the A scension Parish Sales and U se Tax A uth ority's financial performance presents a narrative overview and analysis of A scension Parish Sale and U se Tax Authority's financialactivities for the year ended June 30, 2003.This docum entfocuses on the currentyear's activities, resulting changes, and currently known facts in comparison with the prior year's information (where available). FIN AN CIA L H IG H L IG H TS " ~" Tile Ascension Parish Sales and Use Tax Authority's collections decreased atthe close of fiscalyear 2003 by $8,/83,559. Sales tax revenues dropped during th e year m ainly because of the closin g and reductions at the petrochem icalplan ts. O VE R VIE W O F TH E FIN AN CIAL STA TEM ENT S The follow ing graphic illustrates th e m inim m n requirem ents for Special Purpose G overnm ents Engaged in BusinessType A ctivities established by Governm ental A ccounting Standards Board Statem ent 34, Basic FinancialStatem ents an d M ana ~em ent'sd iscussion and A nalysis forstate an d LocalG overnm ents M anagem ent'sd iscussion and Analysis I BasicFinancialStatements 1 I Required supplem entary inform ation (otherthan M D&A)

7 A SC EN SIO N PA H SA LE S A N D U SE TA X A U T H O R IT Y G onzales,louisiana M A N A G EM EN T 'S D ISC U SSIO N AN D :4.NA L Y SIS A S O F JUN E These financialstatementsconsistofthree sectionsm atmgement'sdiscussion and Analysis(thissection), the basic financialstatements(including the notesto the financialstatements),and required supplementary information. Fiduciary funds, Fiduciary Ftm dsare used to accountfor resourcesheld for the benefitof outside pardessuch as other govenunents. The A scension Parish Salesand U se Tax A uthority usesits fundsto accountforsn estaxes and occupationallicenseswhich itcollectsfrom governm ents. N otesto the financialstatem ents. The notesprovide additionalinform ation thatisessentialto a fullunderstanding of the data provided in the fund financialstatem ents. FIN AN CIAL AN A LY SIS O F TH E ENTITY Statem entof N eta ssets A s of June 30,2003 TotalC urrenta ssets $ 5,517,276 A ccountspayable O th er Liabilities Com pensated A bsences TotalLiabilities TotalN eta ssets ~ Totalcurrentassetshave decreased approxim ately 6% from prior year ~ Otherliabilitieshave decreased $307,461on accountof the am ountdue to other taxing bodiesdecreasing by approxim ately 6%.

9 A SC E N SIO N PA R ISH SA L E S A N D U SE T A X A U T H O R ITY N O TES TO TH E FIN AN CIA L STA TEM EN TS IN TR O D UCTIO N The A scension Parish Sales and U se Tax A uthority w as created O ctober 5, 1989 for the purpose of collectin g, adm inistering and distributing the various sales and use taxes levied by entities w ithin A scension Parish, and the occupationallicense tax and the hotel/m oteltax forthe Ascension Parish Coun cil. The Authority isgoverned by a Board ofdirectors. TheBoard iscomposed ofthechiefadministrativeofficer(orappointee)foreach governing authority of any participating entity having a history of collecting in excess of $1,000,000 of salestaxesfor two consecutive years. Asof yearend,the Board consisted of a m em berof the Ascension Salesand U se Tax Authority, A scension Parish Council,A scension Parish SchoolBoard,the City of Gonzales,and the City of Gonzales. 1. Sum m ary of SignificantA ccountin~ Policies A. Reportin g Entity For finan cialreporting purposes,the Authority includes all fi.m ds and account groups that are w ithin oversightresponsibility of the A uthority. B. Fund A ccoun ting The fin anciallransactionsof the A scension Parish Sales and U se Tax Authority are recorded in an agency fun d and an accountgroup. The operationsof the agency fun d are accoun ted forw ith a separate setof selfbalancing accoun ts that com prise its assets and liabilities. The account gr oup represents a financial reporting device designed to provide accoun tability for certain assetsan d liabilitiesw hich are notrecorded in the fire d because they do notaffectnetexpendable available financialresources. The A scension Parish Salesan d U se Tax Authority usesthe follow ing fun d typean d accountgr oups Fiduciarg Fund Tvpe: Agency F und The A gency Fund isused to accoun ttbrassetsheld by the A scension Parish Sales mad Use Tax Authority in a trusteecapacity orasan agentforthetaxing authoritiesat(notec). A ccountg roups GeneralFixed Assets A ccountgroup The GeneralFixed A ssetsa ccountgroup isused to accountfor allfixed assetsof the Ascension Parish Salesand U se Tax Authority. GeneralLong Term D ebta ccount Group The G enerallong Term D ebta ccoun tgroup is used to accountfor noncurrentliabilities. 6

10 A SC E N SIO N PA R ISH SA LE S A N D U SE TA X A U TH O R ITY G onzales~louisiana N O TES TO TH E FIN A N CIA L STA TEM E N TS 1. Sum m ar'~of SignificantA ccountin ~ Policies C. Basisof A ccounting A gency Funds are accounted for on the m odified accrualbasis of accounting. Collections of salestaxesare recognized w hen received and expenditu resare recognized w hen the related fun d liability isre curred. D. TotalColurrm son Com bined Statem ents E. Cash and Cash Equivalents State law authorizes the Ascension Parish Sales and Use Tax Authority to deposit tax collections m a bank dom iciled in the parish where the fundsare collected. Furtherm ore,the Ascension Parish Sales mad Use Tax Authority m ay investthese deposits m certificates of depositor otherinvestm entsperm ited by law. F. U se of Estim ates The prepar ation of financial statem ents in conform ity with gen erally accepted accounting principlesrequiresm anagem en tto m akesestim atesand assum ptionsthataffectcertain reported am ountsand disclosures. Accordingly, actualresults m ay differ from those estim ates. G. Participating Entities Asof June 30,2003,the Auth ority collected taxesforthe followin g entities A scension Parish Council A scension Parish SchoolBoard A scension Parish D istrictn um ber Tw o City of Gonzales City of G onzales City of Sorrento EastA scension D rainage D istrict W esta scension H ospitalservice D istrict A scension Parish Sheriff 7

11 A SC EN SIO N PA R ISH SA LE S AN D U SE TA X A U TH O R ITY Gonzales~L ouisiana N O TE S T O TH E FIN A N CIA L STA TE~LEN TS 1. Sum m ary of SignificantA ccountinv Policies (continued) I.Com pensated A bsences 2. C ash Em ployees accrue 12 days of sick leave per year depending upon thc num ber of m onths w orked. Sick leave m ay be accum ulated w ith outlim itation. Upon death orretirem ent,unused accum ulated sick leave of up to 45 days ispaid to em ployeesor their heirsatthe em ployees' currentrate of pay. The accrualcom putation fbr earned sick leave is calculated on a 45day m axim um perem ployee. Sick leave ispayable upon discharge or term ination. A llem ployees earn 10 to 20 days of annualvacation leave per year depending on length of service w ith the Authority. Such leave iscredited on a pro rata basisatthe end of each payroll reporting period and accum ulates untilthe individualhas 50 days. A nnualleave is notpaid upon term ination of em ploym ent. In Governm entalfund types,sick and vacation leave thathasbeen claim ed by em ployeesasof the end of the fiscalyearisrecorded asan expenditure in the year claim ed. Sick leave hasbeen accru ed asof the end of the fiscalyear and isvalued using em ployees'currentratesof pay.the totalis included in the G enerallongterm D ebta ccountg roup. A ccru ed sick an d vacation leave w illbe paid from future years'resources. N o allow ance is m ade for the im m aterial am ountsof sick and vacation leave forfeited when em ployeesresign or retire. A tyear end,the carrying amotmtof the Auth ority 'sdepositswas $5,517,276 and the bank balance w as $5,000,422. Of the break balance, $100,000 w as cover ed by federal depository insurance, $4,000,422 wascovered by collateralheld by the pledging bank'sagentin the Authority 'snam e. 3. TaxesPaid Under Protest/Litigation The A uthority has various suits againstitinvolving taxespaid under protest. The am ountof taxes paid under protestatjune 30,2003 was$144,635. rlqae ultim ate resolution of these suitscannotbe determ ined.

12 A SC E N SIO N PA R ISH SA L E S A N D U SE T A X A U T H O R IT Y G onzales.louisiana N O TES TO TH E FIN A N CIAL STA TEM EN TS 4. Chan~esin A ~encv Fund D epositsd ue O thers A sum m ary of changesin agency fund depositsclue othersfollow s Jun e Balance,beginning of year A dditions Taxesand licensescollected Interest Reductions Taxespaid SchoolBoard Parish Council Drainage D istrict G onzales D istrictn o.2 D onaldsonville H ospitald istrict Sorrento O ccupationallicen se Tax Free Operating Expenses Sheriff $ 5,680,102 63,626, ,649,140 27,603,921 9,363,099 6,338,190 7,997,441 4,325,697 1,422, , , ,339 29, ,921 4,240,717 63,957,743 Balance,end of year 9

13 A SC EN SIO N PA R ISH SA LE S A N D U SE TA X A U TH O R ITY G onzales~louisiana N O TES TO TH E FINA N CIA L STA TEM E N T S 5. D efined BenefitPension Plansand Postem Dlovm en Substantially allemployees of the Authority are m em bers of Teachers R etirem entsystem s. These system sare costsharing,m ultipleem ployer defined benefitpension plansadm inistered by a board of ~ustees.pertinentintbrm ation relative to each plan follow s: Plan D escription. The TRS consistsof three m em bership plans: RegularPlan,Plan A,and Plan B. The TRS providesretirem entbenefitsasw ellasdisability and survivor benefits.ten yearsof service credit is required to becom e vested tbr retirem ent benefits and five years to becom e vested for disability and survivor benefits. Benefits are established and am ended by state statute. The TR S issues a publicly avai lable financial report that includes finan cial statem ents and required supplem entary in form ation for the TR S. Thatreportm ay be obtained by writing to the Teachers' Retirem entsystem of Louisiana,PostO ffice B ox 94123,Baton R ouge,louisiana ,orby caling (225) Funding Policy. Plan m em bersare required to contribute 8.0 percent,9.1percent,an d 5.0 percentof their annualcovered salary forthe Regular Plan,Plan A,and Plan B,respectively. The A uthority is required to contribute atan acm arially determ ined rate. The currentrate is 13.8 percentof annual covered payrollfor allth ree m em bership plan s. M em ber contributions and em ployer contributions for the TR S are established by state law and rates are established by the Public Retirem entssystem s' Actu arialcomm ittee.the Authority 'sen rployercontribution forthe TRS,asprovided by state taw,is funded by the State of Louisiana through annualappropriations,by deductionsfrom localad valorem taxes,and by rem ittan cesfrom the A uthority. The Auth ority's contributionsto the TRS forthe years ended Jun e 30,2003,2002,and 2001,w ere $40,868,$38,499,an d $48,010,respectively,which equalsto the required contributionsforeach year. 6. C hangesin A ccountin~ Principles For the year ended Jun e 30, 2003, the A scension Parish Sal es and U se Tax A uthority has implemented GASB StatementNo.33,Accounting and FinancialReporting for Nonexchange Transactions, and GA SB Statem en t N o. 34, Basic Financial Statem ents and M anagem ent's Discussion and Analysisfor&ate andlocalgovernments.atjune30,2003therewasno effecton fund balan ce asa resultof th e im plem entation of GA SB 33. GA SB Statem entn o.34 createsnew basic finan cialstatem en tsfor rep orting on the A scension Parish Salesand U se Tax A uthority fin ancialactivities.th e finan cialstatem en tsnow in clude fund financial statementswhich presentinformation forindividual majorfundsratherthan by fund typewhich had been the method ofpresentation in previously issued financialstatements. Nonmajorfunds are presented in totalin one colum n in the fund finan cialstatem ents. 10 ~

15 Postlethw atte & N etterville A ProfessionalA~ aunting Corporation Ass~ a~ed O Rates~nPdnd~xllC~l~esofth~ U~ited S~fes REPO R T O N C O M PLIA N CE AN D O N IN TE R NA L CO NTR O L O V E R FINA N CIA L Board of D irectors A scension Parish Salesand Use Tax Authority Gonzales,Lom siana W e have audited the finan cialstatem en tsof the A scension Parish Salesand Use 'lax Authority as of an d for the year ended June 30,2003,and have issued our reportthereon dated N ovem ber 14, 2003,w hich w as unqualified.w e conducted our audit in accordance w ith auditing sta ndards gcnecal ly accepted in the U nited States of Am erica and the standards applicable to financial audits contained in Governm em A uditing Standards,issued by the Com ptroller G eneralof the United States. Com pliance A spartof obtaining reasonable assurance aboutwhether A sccnasion Parish Sales and U se Tax Auth ority's financial statem ents are free of m aterial m isstatem ent,w e perfbrm ed tests of its com pliance w ith certain provisionsof law s,regulations,contractsmad grants,noncom pliance w ith which could have a direct and m aterial effect on the determ ination of financial statem ent am ounts, tiow ever,providin g an opinion on com plian ce with those provisions w as not an objectiveof ourauditand,accordingly,wedo notexpresssuch an opinion. Theresultsofour testsdisclosed no instancesof noncom pliance thatare required to be reported undergovernm ent Auditing Standards. InternalC ontrolo ver FinancialR eporting In planning and perfbrm ing our audit,w e considered A scension Parish Sales and U se Tax Authority 'sinternalcontroloverfinan cial reporting in orderto determ ine ourauditing procedures for the purpose of expressing ouropinion on the generaifinancialstatem ents and notto provide assurance on the in ternal control over finan cialreporting. Our consideration of the internal controlover financialreporting w ould notnecessarily disclose allm attersin the intern alcontrol over financialreporting thatnfightbe m aterialw eaknesses.a m aterialwealm essisa condition in which the design oroperation of one orm ore of the intern alcontrolcom ponents doesnotreduce to a relatively low levelthe risk thatm isstatem entin am ountsthatw ould be m aterialin relation to the financialstatem entsbeing audited m ay occurand notbe detected within a tim ely period by em ployees in the norm alcourse of pertbm fing their assigned functions. W e noted no m atters involving the intern alcontrolover financialreporting and its operation thatw e consider to be ntaterialw eaknesses. Thisreportisintended forthe intbrm ation of the A scension Parish Salesand U se Tax A uthority, m anagem ent and is not in tended to be and should notbe used by anyone other than these specified parties. U nder Louisiana Revised Sta tue 24:513, this report is distributed by the Legislative A uditor asa public docum ent St.PatrickSt. EO.Box 1190 ~ Donaldsonvile,LA Te1: Fax:

V ernon Parish Tax Agency Fund O f the V ernon Parish SchoolBoard Leesville,Louisiana. FinancialStatem ents A s of and for the Year Ended June 30,2002

V ernon Parish Tax Agency Fund Leesville,Louisiana FinancialStatem ents A s of and for the Year Ended June 30,2002 IND EPEND EN T A UD ITO R S'REPORT FIN AN CIAL STA TEM EN TS Statem entof A ssets and