M ETR O N A R C O TIC S U N IT O F O U A C H ITA PA R ISH

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1 M ETR O N A R C O TIC S U N IT O F O U A C H ITA PA R ISH G eneralp urpose F inancialstatem ents For the Year Ended Septem ber Underprovisions ofstt:tr:inw,fi-,is ioporii~ a public docurfi('ll[.a ((:', -!I(;I:'LIL: ~ ~ ;)~:i;s::':~:tls!(j[0 the cntity ~r;c',(:i! :;l::::. : '. b!",c : : :!';.lhe icpoelis,\,::h~[)!:f(:.[il;l::{ i;~ : 'ii _ ~;tt;~:!~,;~torl Rouge cfljcc ofth(!l;:~;:ut]~o A~ _ : :r~ij,vthcle Eq)ploplisto,~tthe ohi(:e ofthe p~jd*.,h cicrk ofcourt.

2 M!:J ~RQ _NA_RCOT!CS ~ J_T OF O U_AC!tlTA PARIS I_t SEPTEM BER TA BLE O F CON TEN TS P _ age IndependentA uditors'report--- G EN ERA L PURPO SE FIN AN CIA L STA TEM ENTS Com bined Balance Sheet Statem entof Revenues,Expendituresand Changesin Fund Balance - G overnm entalfund Type N otesto the FinancialStatem ents CO M PLIAN CE REPO RTIN G IndependentA uditors'report on Compliance and on InternalControlOverFinancialReporting Based on an Auditof FinancialStatem entsperform ed in A ccordance W ith G overnm enta uditing Standards ScheduleofFindingsand Questioned Costs Schedule of Expendituresof FederalAw ardsand N otes to Schedule of Expendituresof FederalA w ards Sum m ary Schedule of PriorA uditfindings II 12

3 M ailing Address: P O.Box W estm ot~roc,la C AM ERON,ItlNES & H AR'IW (A ProfesslolalAccounting Corporation) Certified Public Accountants 104 Regency Place W estm onroe,louisiana Phone (318) Fax (318) N DEPEN D EN T A U D ITO RS'RE PO RT Board of D irectors M etro N arcoticsunitof O uachita Parish W e have audited the accom panying generalpurpose financialstatem entsof M etro N arcotics Unitof Ouachita Parish (M etro)asof and forthe yearended September30,2001,aslisted in the table of contents. These generalpurpose financialstatem ents are the responsibility of M etro's m anagem ent. O ur responsibility is to express an opinion on these com ponent unit financial statem entsbased on ouraudit. W e conducted our audit in accordance w ith auditing standards generally accepted in the United States of America and the standards for financialand com pliance audits contained in G overnmentauditing Standards issued by the Com ptrollerg eneralof the U nited States. ]'hose standardsrequire thatw e plan and perform the auditto obtain reasonable assurance aboutw hether the generalpurpose financialstatem ents are free of m aterialm isstatem ent. A n audit includes exam ining,on a test basis, evidence supporting the am ounts and disclosures in the general purpose financialstatem ents. A n auditalso includesassessing the accounting principlesused and significantestimates m ade by managem ent,as wellas evaluating the overallgeneralpurpose financialstatem entpresenta tion. W e believe thatourauditprovides a reasonable basis forour opinion. In ouropinion,the generalpurpose financialstatem entsreferred to above presentfairly,in all m aterial respects,the financial position of M etro N arcotics Unit of O uachita Parish as of Septem ber30,2001and the resultsof itsoperationsforthe yearthen ended,in conform ity w ith accounting principlesgenerally accepted in the U nited Statesof A m erica. In accordance w ith GovernmentAuditing Standards,we have also issued a report dated N ovem ber27,2001,on ourconsideration of M etro'sinternalcontroloverfinancialrepo rting and ourtestsof itscom pliance w ith certain provisionsof law s,regulations,contractsand grants. ]'hat report is an integral part of an audit perform ed in accordance w ith G overnm ent Auditing Standardsand should beread in conjunction with thisreport in considering theresultsof our audits.

4 Board of D irectors M etro N arcoticsu nitof O uachita Parish O ur audit w as perform ed for the purpose of form ing an opinion on the generalpurpose financial statem ents of M etro N arcotics Unit of O uachita Parish taken as a w hole. The accom panying schedule of expendituresof federalaw ards ispresented forpurposesof additional analysisasrequired by U.S.OfficeofManagementand BudgetCircularA-133,Auditsof States, LocalGovernments.and Non-ProfitOrganizations,and is nota required partofthe general purpose financialstatements. Such informationhasbeen subjected to theauditing procedures applied to the auditof the generalpurpose financialstatem ents and,in ouropinion,isfairly stated in allm aterialrespects,in relation to the generalpurp ose financialstatem entstaken as a whole. W estm onroe,louisiana N ovem ber27,2001

5 M F.TRO N A RCO TICS UN IT O [ O UACHITA PA RISH SEPTEM BER 3Q~290J ASSETS G overnm ental Fund Typẹ A ccountgroups G eneral General Long-Term G eneralfund Fixed A ssets D ebt "IO TA LS M emorandum On Cash and Cash Equivalents Petty Cash Certificatesof D eposit A ccountsreceivable -LCLE Grant O therreceivables Building Renovations Security Equipm ent Furniture and Equipm ent Am ountto be Provided forl.ong-term Debt $ 113,729 2, ,759 25,321 3,700 $ 65,425 12,450 26,850 18,027 13,729 $ 2,978 65,759 25,321 3,700 65,425 12,450 26, ,964 2,964 54,084 21,779 3,370 TOTAL ASSETS $ 311,487 $ 104,725 $ 18,027 $ 434,239 $ Liabilities Lease O bligationspayable -Current $ 18,027 $ 18,027 $ Fund Balance Investm entin G eneralfixed A ssests Fund Balance Unreserved/Undesignated 311,487 04, ,16 TotalFund Balance , $ 311,487 $ 104,725 $ 18,027 $ 434,239 $ 249,16 The accom panying notesare an integralpartofthisfinancialstatem ent

6 RO NARCO TICS UN IT O F O U A C H ITA PA RISH STATEM ENT O F REVEN UES,EX PEN D ITURES AN D C H._ A _ NG ES IN FUN D BA LANCES -GO VERN M EN TA L FUN D TYPE FO R ']'tie YEA R EN DED JUNE W ITH COM PA RA TIV E TO TA LS FO R ']'HE Y EA R EN DED JUN E 30~ _29_0_0 Revenues Intergovernm ental Forfeitures Restitutions Salesof Seizures Interest O ther TotalRevenues YearEnded June $ 129, ,006 3,017 41,550 13,089 2, ,529 23,920 29,032 4,320 65,386 14,927 4, ,94 Expenditures Purchase of lnfonnation Purchase of Evidence Purchase of Services Accounting/A uditservices Investigative A uto Bank Charges CellularPhones Equipm entrental K-9 Expenditures M aterials,repairs& Supplies M iscellaneous O fice Supplies O ffice Expenses Security System Service Telephone and Pagers Travel Utilities TotalExpenditures ExcessofRevenuesO verext)enditures Fund Balance atbeuinninu of Y ea FIIN D BA LA N C E A T EN D O F Y EA R 13,144 17,986 67,065 2,773 8,649 5, ,074 11, ,570 5,568 10,347 1,924 1,643 20,483 3,561 6, ,203 62, $ 311,487 7,667 26,306 54,137 4, ,480 10, ,412 1,575 7,654 2,001 9, , ,386 71,555 77,606 $ 249,16 The accompanying notesare an integralpartof thisfinancialstatem ent. 3

7 M ETRO N A RCO TIC S UN IT O F O IJACttlTA PA RIS N C 1A L STA TEM EN TS IN TRO D U CTIO N M etro Narcotics Unitof Ouachita Parish (M etro)consistsof the following agencies:ouaehila Parish Sheriff'sDepartment,W estm onroe and M onroe Police Departmentsand the Fourth JudicialDistrict Attorney. M etro w asform ed because of the enorm ity of the problem s,legaland social,caused by the use, abuse and distribution of drugs w ithin the parish;and,further realizing thatby working together in a coordinated m anner,m uch can be accom plished toward reducing illicitdrug usage and trafficking. M etro is nota com ponentunitof anotherprim ary governm entnordoesithave any com ponentunitsthat are related to it. Therefore,M etro has presented its financialstatem entsas a separate specialpurpose governm ent. N ote I- Sum m ary of SiznificantAccountinz Policies A..Reporting Entit3 In Aprilof 1984,the FinancialA ccounting Foundation established the G overnm ental Accounting Standards Board (GASB)to promulgate accounting principles generaly accepted in the United States of A m erica and reporting standards w ith respect to activitiesand transactionsof state and localgovernm ententities. In N ovem berof 1984, the G A SB issued a codification of governm ental accounting and financial reporting standards. This codification and subsequentg A SB pronouncem ents are recognized as accounting principles generally accepted in the U nited States of Am erica for state and localgovern m ents. B. Presentation of The acco m panying financial statem ents conform to accounting principles generally accepted in the United States of Am erica for state and local governm ents. These statementshavealso incorporated any applicable requirementssetforth by Auditsof State and LocalGovernm entalunits,the industry auditguide issued by the A m erican Institute of Certified Public A ccountants and the Louisiana Governm entalauditg uide. C. Fund Accounting M etro usesgovernm entalfundsand accountgroupsto report itsfinancialposition and the resultsof itsoperations. Fund accounting is designed to dem onstrate legalcom pliance and to aid financialm anagem entby segregating transactionsrelating to certain functions oractivities. The operationsof the fund are accounted forw ith a setof self-balancing accounts that com prise its assets,liabilities,equity,revenues and expenditures. Governm entalfunds are used to account for allof M etro's generalactivities,including the collection and disbursem entof specific orlegally restricted m oniesand the acquisition of fixed assets.

8 M ETRO N A RCO TICS UN IT O F O [JAC H ITA PA RIStt N O TES TO TttE FIN AN CIAL STATEM EN TS O R TIlE Y EAR EN DED SEPTEM BER N ote 1- ficanta ccounting _ Policies C. Fund Acco unt (continued) The governm entalfund isdescribed asfollow s G eneralfund The G eneralfund is the generaloperating fund of M etro. It is used to accountforall fnancialresources. These discretionary fundsare accounted forand reported according the source (federal,state orlocal)from which they are derived. G eneralfixed A ssetsa ccountgrout) Fixed assets used in governmental fund type operations (general fixed assets) are accounted forin the G eneralfixed A ssetg roup,ratherthan in governm entalfunds. N o depreciation has been provided on generalfixed assets. The costof nornlalm aintenance and repairsthatdo notadd to the value of fixed assetsor m aterially extend theirusefullivesare notcapitalized butare only recognized asa norm al expenditure of the governm entalfunds. G enerallone-term Deb Long-term liabilities expec ted to be financed from governm entalfunds are ac ounted for in the G enerallong-term DebtAccountGroup,notin the govern m entalfunds. Because of theirspending m easurem entfocus,expenditure rex~ gnition forgovernm ental fund types is lim ited to exclude am ountsrepresented by noncurrentliabilities. Since they do not afect net current assets, such long-term am ounts are not recognized as governm entalfund type expenditures or fund liabilities. They are instead reported as liabilitiesin the G enerallong-term DebtAccountG roup. D. TotalColum nson Com bined Statem ents- O verview Totalcolum ns on the Com bined Statements- O verview are captioned "M em orandum O nly" to indicate thatthey are presented only to facilitate financialanalysis. Data in these colum ns do not present financialposition,results of operations,or changes in financial position in conform ity w ith accounting principles generally accepted in the U nited Statesof A m erica.n eitherissuch data com parable to a consolidation.

9 M ETRO N A RCO TICS U N IT O F OUACH ITA PARISH N O TES TO Tt1E FIN AN C IA L STATEM ENTS FO R ]'tie Y EA R EN D ED SEPTEM BER N ote I- Sum m ary ofsianificanta ccountina Policies E. Basisof A ccounting The financialreporting treatm ent applied to a fund is determ ined by its m easurem ent focus. The governm entalfunds are accounted for using a current financialresources m easurem ent focus. W ith this m easurem ent focus, only current assets and current liabilities generally are included on the balance sheet. Operating statem ents for these fundspresentincreased (i.e.,revenuesand otherfinancing sources)and decreased(i.e., expendituresand otherfinancing uses)in netcurrentassets. The m odified accrualbasis of accounting is used for reporting allgovernm entalfund types. Underthe m odified ac rualbasis of accounting,revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "M easurable" m eans the am ountof the transaction can be determ ined and "available m eans collectible w ithin the currentperiod orsoon enough thereafterto be used to pay liabilitiesofthe currentpe riod. F, Estim ates The preparation of financial statem ents in conform ity w ith accounting principles generally accepted in the U nited States of A merica requires m anagem ent to m ake estim ates and assum ptions that affect certain reported am ounts and disclosures. A ccordingly,actualresultscould diferfrom those esth nates. N ote 2 - Cash and Certificatesof D enos AtSeptember30,2001,the book balance of M etro'sbank depositswas$113,729 These depositsare slated atcost,w hich approxim ates m arket. Understale law,these deposits (ortheresulting bank balances)mustbe secured by federaldepositinsurance orthepledgeof securitiesow ned by the fiscalagentbank.the m arketvalue of the pledged securitiesplusthe federaldepositinsurance m ustatalltim esequalthe am ounton depositw ith the fiscalagent. These securities are held in the nam e of the pledging fiscalagent bank in a holding or custodialbank thatism utually acceptable to both parties. The bank balance of $114,477 w as fully insured at Septem ber 30,2001. O ne financial institution m aintainstwo certificatesof depositwhich m ature lessthan three m onthsfrom the date of the financial statem ents and are considered cash equivalents. The certificates of depositare recorded atm arketvalue. The m arketvalue of the pledged securitiesin addition to FDIC insurance is$447,777.

10 M ETRO N A RCO TIC S U N IT C O UAC tiita PA RISH N O TES TO TH E FIN AN CIA L STA TEM EN TS FO R THE Y EA R EN D ED SEPTEM BER N ote 3 - Receivables A ccounts receivable atseptem ber30,2001,consisting of reim bursem ents forexpenditures incurred traderthe Louisiana Comm ission Law EnforcementGrantwas$25,321. N ote 4 - CapitalLease Obligation M etro leases a phone system and som e com puter equipm ent under capital leases. M anagem enthas indicated thatthese leasesw illbe paid com pletely by Decem ber31,2001, therefore,the entire lease obligation is considered current. The future m inimum lease paym entsand presentvalue of the lease paym entsatseptem ber30,2001are asfollow s: Y earended 2002 LessIm puted Interest: CapitalLe ase O bligation A m ount $ 18, ) N ote 5 - FederalAward Program s M etro receives revenues from the Louisiana Com m ission Law Enforce m ent federalgrant program thatissubjectto finalreview and approvalasto theallowability ofexpendituresby the grantor agency. This program is audited in accordance w ith the Single Audit Act Amendmentof1996.Any setlementsorexpensesarising outofafinalreview arereco gnized in the period agreed upon by the agency and M etro. A lso,itis m anagem ent'sopinion that any auditsby the grantoragency w ould notproduce disallowed program costsand liabilities to such an extentthatthey w ould m aterially afectm etro'sfinancialposition. N ote 6 - Econom ic Dependency M etro receivesthemajority of itsrevenuefrom fundsprovided through thegrantmentioned in N ote 5. The grant am ounts are appropriated each year by the federal and state governm ents. If significantbudgetcutsare m ade atthe federaland/orstate level,the am ount of the fundsm etro receivescould be reduce d significantly and have an adverse im pacton its operations. M anagem entisnotaware of any actionsthatw illadversely afectthe amountof fundsm etro w illreceive in the nextfiscalyear. N ote 7 - Risk M anagem ent M etro isexposed to variousrisksof lossrelated to torts,errorsand om issions,and destruction of assets. M etro haspurchased com m ercialinsurance to coverorreduce the risk of lossthat m ightarise should one of these incidentsoccur. N o setlem entsw ere m ade during the year thatexceeded M etro's insurance coverage.there w asno litigation pending againstm etro at Septem ber30,2001,norism etro aware of any unasserted claim s.

11 M arling Addres s: P.O.Box 2474 W estm onroe,la C AM ERON,H INES & ]]AR'VI" (A professionalaccounting Corporation) C~rtified l'ublic Accountants 104 Regency Place W estm onroe.louisiana Phone (818) Fax (318)8gg-I~lEl IN DEPEN D EN T A U DITO R'S REPO RT ON CO M PLIAN CE AN D ON IN TERN A L CON TRO l. O V ER FIN ANCIA L REPO RTIN G BASED ON AN A U D IT O F FINAN CIAl. STATEM ENTS PERFO RM ED IN A CCO RDAN C E W ITH G O VERN M EN T A UDIITNG STANDARDS Board of D irectors M etro N arcoticsu nit O f O uachita Parish W e have audited the generalpurpose financialstatem entsof M etro N arcoticsu nitof O uachita Parish (M etro)asof and forthe yearended September30,2001,and have issued ourreportthereon dated N ovem ber27,2001. W e conducted ourauditin accordance w ith auditing standardsgenerally accepted in the United Slates of A m erica and the standards applicable to financialaudits contained in G overm nent Auditing Standards,issued by the Com ptrollerg eneralof the United Stales. Com pliance A spart of obtaining reasonable assurance aboutw hetherm etro'sgeneralpurp ose financialstatem ents are free of m aterialm isstatem ent,we perform ed testsof itscom pliance w ith certain provisionsof laws, regulations,contractsand grants,noncom pliance w ith which could have a directand materialeffecton the determ ination of financialstatementamounts. However,providing an opinion on com pliance w ith th ose provisionswasnotan objectiveofourauditand,accordingly,we do notexpresssuch anopinion.the results of our tests disclosed no instances of noncom pliance th at are required to be reported under GovernmentA uditing Standards. InternalC ontrolo ver FinancialR eporting In planning and perform ing ouraudit,w e co nsidered M etro's internalcontroloverfinancialreporting in orderto determ ine ourauditing procedures forthe purpose of expressing ouropinion on the general purpose financialstatem entsand notto provide assurance on the intem alcontroloverfinancialreporting. O urconsideration of the intern alco ntroloverfinancialreporting w ould notnecessarily disclose allm atters in the internalcontroloverfinancialreporting thatnfightbe m aterialw eaknesses. A m aterialweaknessis a condition in w hich the design oroperation of one orm ore of the intern alcontrolcom ponentsdoesnot reduce to relatively low levelthe risk thatm isstatem ents in am ountsthatwould be m aterialin relation to the generalpurpose financialstatements being audited may occurand notbe detected w ithin a timely period by em ployees in the normalcourse of perform ing theirassigned functions. W e noted no m atters involving the internalcontroloverfinancialreporting and its ope ration thatwe considerto be nm terial w eaknesses.

12 Board of D irectors M etro N arcoticsunit O f O uachita Parish Page 2 This reportis intended solely forthe infom lation and use of m anagem entm etro N arcotics Unitof O uachita Parish,the Louisiana Legislative A uditor,federalaw arding agenciesand pass-through entitiesand isnotintended to be and should notbe used by anyone otherthan these specified parties. U nderlouisiana Revised Statute 24:513,thisreport isdistributed by the Legislative A uditorasa public docum ent. W estm onroe,louisiana N ovem ber27,2001

13 M ETRO N A RCO TICS UN IT O O U A CH ITA PA RIStt SCliEDULE OF FIN DINGS AN D QUESTIONED COSTS FO R TIlE YEAR EN DED SEPTEM BER W e have audited the general purpose financial statem ents of M etro N arcotics Unit of O uaehita Parish as of and forthe yearended Septem ber 30,2001,and have issued our report thereon dated N ovem ber 27, W e eonducted our audit in accordance w ith auditing standards generally accepted in the U nited States of A m erica and the standards applicable to financialauditscontained in Governm enta uditing Standards,issued by the Com ptrollergeneral of the United States. O urauditof the financialstatem entsasof Septem ber30,2001,resulted in an unqualified opinion. Section I-Sum m ary of A uditor'sr eport A. Reporlon InternalControland Com pliance M aterialto the FinancialStatem ents Intern alcontrol M aterialw eaknesses _ yes X no Reportable Conditions yes X _ no Com pliance Com pliance materialto financialstatem ents _ ỵes X no B. FederalA w ards-n /A InternalControl M aterialw ea knesses _ yes no Reportable Conditions _ yes no Type of O pinion on Com pliance ForMajorPrograms Unqualified D isclaim er Qualified Adverse A re there findingsrequired to be reported in accordance w ith CircularA-133,Section.510(a)? C. Identification ofmajorprograms:n/a CFDA N umber(s) N am e of FederalProgram (orcluster) Dollarthreshold used to distinguish between Type A and Type B programs$ N/A lsthe auditee a "low-risk" auditee,asdefined by O M B CircularA-133? _ yes no N /A Section I1- FinancialStatem entfindings N o m atterswere reported. Section III- FederalAward Findingsand Q uestioned Costs N o m attersw ere reported.

14 M ETRO N A RCO TICS UN IT O O UAC ItlTA PA RIS SCItEDU LE O F EX PEN DITURES O F FEDERA L A W A RD S AN D N O 'I'ES TO SC ttedu LE O F EX PEN DITU RES O F FED ERA L A W A R DS FO R ]'lie Y EAR EN D ED SEPTEM BER FederalG rants/passthrough G rantor/proeram Title CFDA N um ber A gency or Pass-Through N um ber Ex~penditures D epartm entof Justice Bureau of Justice A ssistance LA Comm ission on Law Enforcement B2-B.02-01tI9 $ 129,634 I. G eneral The Schedule of Expenditures of Fed erala w ards presents the activity of allfederalaw ard program sof M etro N arcoticsu nitof O uachita Parish. M etro's reporting entity isdefined in N ote 1 of M etro's financial statem ents. This federalaw ard program is received as pass through fundsfrom the City of W estm onroe,louisiana. 2. Basisof Accounting The Sched ule of Expenditures of FederalA w ards is presented using the m odified accrual basis of accounting, w hich is described in N ote 1 to M etro's general purpose financial statem ents. The inform ation in thisschedule ispresented in accordance w ith requirem entsof OM B CircularA-133,Auditsof States,LocalGovernments,and Non-ProfitOrganizations. Therefore,som e am ountspresented in thisschedule m ay differfrom am ountspresented in,or used in the preparation of,the basic financialstatem ents.

15 M ETRO N A RCO TICS UN IT O F O IJA C ltlta PA R ISH IA RY SCttEDU LE O F PRIO R A U D IT FIN D I R TH E Y EAR EN D ED SEPTEM BER Section I- lnternalc ontroland Com pliance M aterial10 the FinancialStatem ents N o findingsw ere reported underthissection Section 11- lnternalc ontroland C om pliance M aterialto FederalA w ards Thissection isnotapplicable forthisentity Section Ill-M anagem entletter M anagem entleterpoint#1-reim bursementrequested Tw ice _Condition: A n expenditure was reim bursed in a prior year and was then requested for reim bursem entagain in the nextyear. Recom m endation: A llinvoices should be m aintained w ith grant reim bursem ent request for each m onth,individually,to ensure thata requestisnotduplicated. C urrentstatus: A llinvoices are being m aintained in a m annerthat is consistentw ith the grant requirem ents. M anagem entletterpoint#2 -Supporting Invoices Condition: There w asan absence of invoices supporting the req uestsforreim bursem entfor fourof the tw elve m onthsaudited. Recom m endation: A llinvoices thatare requests forreim bursem entshould at leastbe copied and m aintained w ith the respective reim bursem entrequests. CurrenlStatus: A llinvoicesare being m aintained according to the m onth paid in a filing cabinet 2

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