LO U ISIA NA LO CA L G O V ER N M ENT ENV IR O N M ENTA L FA C ILITIES

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1 LO U ISIA NA LO CA L G O V ER N M ENT ENV IR O N M ENTA L FA C ILITIES A N D C O M M U N ITY D EV ELO PM ENT A UTH O R ITY FINA N C IA L STA TEM ENTS D EC EM B ER A N D 1999 Underprovisionsofstste law, this repog is a public docum ent.a copy ofthe reporthas been subm Ft~c::ito the entity and otherappropri~;te l)hblic official'. ;."1he reportis ovail~':h.,forl)ub!;.c insp.:~ction atth:~baton Rouge ofice efthe [. e[;i~.:l~;ti,o Auditorand, w here appropriato,atthe oflice ofthe parish clerk ofcourt. Release I

2 LO U ISIA N A LO C A L G O V ER N M EN T E N V IR O N M EN TA L FA C ILIT IES A N D C O M M U N ITY D EV EL O PM EN T A U T H O R IT Y FIN A N C IA L STA T EM EN T S D E C E M B ER A N D 1999

3 Table of C ontents ndependeuta uditors'report FinancialStatem ents Balance Sheets Statem entsof Revenues,Expensesand Changes in Retained Earnings Statem entsof C ash Flow s N otesto FinancialStatem ents Reporton Com pliance and on InternalCoutrolover FinancialReporting Based on an A uditof Financia Statem entsperform ed in A ccordance w ith G overm nentd udit#tg Standards

4 Postlethw atte & N citervillc A ProfessionalAccounlingCorporalion Associaled O licesinprincipalcitiesofiheuniledslates A R T O fficersand Trustees Louisiana LocalG overnm entenvironm entalfacilities and Com m unity I)evelopm enta uthority W e have audited the accom panying balance sheets of Louisiana Local G overnm ent Elw ironm enlal Facilitiesand Conmm nity DevelopmentAuthority (aquasi-public organization)asof December31,2000 and 1999,and the related statem ents of revenues,expenses and changes in retained earnings,and cash flow s for the years then ended. These financial statem ents are the responsibility of the entity's m anagem ent. O ur responsibility is to express an opinion on these financialstatem ents based on our audit. W e conducted ourauditsin accordance w ith generally accepted auditing standardsand w ith G overnm enl Audithlg Standards,issued by the Com ptrollerg eneralof the U nited States.Those standardsrequire that w e plan and perform tile auditsto obtain reasonable assurance aboutw hethertile financialstatem entsare free of m aterialm isstatem ent. A n audit includes exam ining,on a lestbasis,evidence supporting tile anlouals and disclosures in tile financialstatem ents. A n auditalso inchldes assessing tile accounting principles used and sigaifieanlestim ates m ade by m anagem ent,as w ellas evahm ting the overallfinancial statem entpresentation. W e believe thatourauditsprovide a reasonable basisforouropinion. In our opinion,the financialstatem ents referred to above present fairly,in allm aterialrespects,tile financial position of Louisiana Local G overnm ent Environm ental Facilities and Com m unity Developm enta uthority asof D ecem ber31,2000 and 1999,and tile resultsof itsoperationsand itscash flow sfortile yearsthen ended in conform ity w ith generally accepted accounting principles. In accordance w ith Governm enta uditing Standards,w e have also issued a report,dated A pril3,2001,on ourconsideration of the entity's internalcontroloverfinancialreporting and ourtestsof itscom pliaucc w ith certain provisionsof law s,regulations,contractsand grants. Baton Rouge,Louisiana A pril3, United PlazaBlvd,Suite 1001 Baton Rouge,IA lel: Fax:

5 O UISIANA LO CA L G O V ER NEM ENTA L EN V IRO N M ENTA L FA C ILITIES A ND C O M M U N ITY D EV EI,O PM EN T A U TIIO R ITY BA LA N C E SItEETS D EC EM BER A N D 1 A SSETS Currentassets: Cash Accountsreceivable Prepaid insurance lnvestl~ents Totalcurrenlassets Furniture and equipm ent Lessaccum ulated depreciation 24,399 1,606 2, , ,109 (1,526) 26, ,401 12, , Totalassets $ $ Liabilities: Accotm ts payable O therliabilities Retained earnings Totalliabilities LIA BILITIES A N D R ETA IN ED EA R N IN G S $ 2,250 $ 8,501 10,75 336,705 6, , Totalliabilitiesand retained earn ings $ 347,456 $ 133,003 See accom panying notesto financialstatem ents - 2 -

6 O UISIAN A LO CA L G O V ERN EM ENTA L EN V IR O N M ENTA L FA C ILITIES A N D Revenues: Issuerfees Application fees Program adm inistration fees Interestincom e M iscellaneousincom e Totalrevenues Expenses: M anagem entfees Salaries Em ployee benefits Board perdiem Professionalfees Insurance Travel M em berrelations Depreciation Other N etincom e Totalexpenses Retained earnings,beginning of year Retained earnings,end of year 308,517 2,000 10,000 11, ,300 66,896 16,217 5,700 2, ,325 2,264 1, , , , , ,485 2,000 2,430 25, ,474 5, , , ,360 See accom panying notesto financialstatem ents - 3 -

7 LO U ISIA N A LO C A L G O V ER N EM ENTA L EN V IRO N M EN TA L FA C ILIT IES A N D C O M M IIN ITV D EV E1,O PM EN T A U T H O R IT Y CA SIIFLO W S FR O M O PER AT IN G A CTIV ITIES N etincom e Adjustmentsto reconcilenetincometo netcash provided by operating activities: D epreciation C hangesin operating assetsand liabilities Accountsreceivable Prepaid expenses A ccountspayable O therliabilities $ 210,345 $ 125,923 1,526 11,230 (2,617) (3,882) 7,990 (12,836) 6, N etcash provided by operating activities 224, ,730 C A Slt FLO W S FR O M INV ESTING A CTIVITIES Purchasesof equipm ent Ptlrchasesof inveglnaents,net (22,343) (292,251) (5,766) Netcash (used in)investing activities (314,594) (5,766) Net(decrease)increasein cash C ash,beginning of year Cash,end of year (90,002) 114, , $ 114,401 See accom panying notesto financialstatem ents

8 LO UISIANA LO CA L G O VERN M ENT EN VIR O N M ENTAL FA CILITIES A N D C O M M U N ITY D EV ELO PM EN T A U TItO R ITY N O T ES TO FIN AN C IA L STA TEM EN TS D EC EM BER A N D 1999 I. SIG N IFIC A N T A C C O UN TIN G PO LIC IES (a) Background and FinancialStatementPresentation The Louisiana Local G overnm ent Environm ental Facilities and Com m unity D evelopm ent Authority (LCDA orthe Authority)wascreated by the Louisiana Legislature R.S.33:4548.The LC I)A is a politicalsubdivision of the State of Louisiana and has entered into a m anagem eat contractw ith the Louisiana M unicipala ssociation form anagem entservices.lcd A w ascreated for the purpose of assisting political subdivisions in constructing, extending, rehabilitating, repairing,and renew ing infrastructure,econom ic developm entand environm entalfacilities,and assisting in the financing of such needs by political subdivisions. M em bership consists of m unicipalities,parishes,schoolboards,and specialdistricts. The A uthority hasno taxing pow erand receivesno appropriation from lhe State of Louisiana or any govermuentalbody. Bonds issued by the A uthority are lim ited obligationsof the A uthorit5 payable only from incom e,receiptsand assets pursuantto trustindentures related to each bond issue. A ccordingly,these financialstatem ents include only the financialposition and operations of the A uthority and isnotintended to include orpresentassets,liabilitiesoractivitiesof various bond issues. (b) (c) Basisof Accounting The A uthority is considered an enterprise fund and,accordingly,uses the accrual m ethod of accounting. The A uthority applies allapplicable FA SB pronouncem ents issued on or before N ovem ber30,1989 in accounting foritsoperationsunlessthose pronoancem entsconflictw ith or contradictg A SB pronouncem ents. Cash and Cash Flows [:orthe purpose of the statem entof cash flow s,cash includes cash in dem and accounts w ith banks. (d) Investm ents Investm ents are reported at fair value, w hich is the sam e as cost at D ecem ber 31, Investmentsinclude amountsinvested into the Louisiana AssetM anagementpool(lam P)at D ecem ber31,2000. (e) Issuer,Application and Program Fees The A uthority receives non-refundable issuer, application and program fees related to bond financing program s issued through the A uthority. The A uthority recognizes issuer,application and program fees as incom e w hen the respective bond program s are funded and the fees are earned. 09 Income Taxes The A uthority isexem ptfrom federaland state incom e taxes - 5 -

9 LO U ISIAN A LO C AL G O V ER N M EN T EN V IR O N M ENTA L FA C ILITIES A N D C O M M UN ITY D EV ELO PM EN T AU TIIO R ITY N O TES TO FIN AN C IAL ST ATEM EN TS D ECEM BER A N D SIGNIFICANT ACCOUNTING POLICIES (continued) The preparation of financialstatem entsrequiresm anagem entto m ake estim atesand assum ptions thataffectthe reported am ountsof assetsand liabilitiesand disclosure of contingentassetsand liabilities at the date of the financial statem ents and the reported am ounts of revenues and expensesduring the reporting period.a ctualresultscould differfrom those estim ates. 2. R ELA TED PA R TY TRA N SA C TIO N S The Authority hascontracted with the Louisiana M unicipalassociation (LM A)to perform certain m anagem entand adm inistrative flm ctionson its behalf. Forthe yearsended Decem ber31,2000 and 1999,the entity recognized $18,300 and $24,474,respectively,of expense related to thisagreem ent. The Authority owed LM A $2,000 and $5,536 atdecember31,2000 and 1999,respectively. These am ountsare included in accountspayable on the balance sheet. 3. M U LT I-EM PLO Y ER PEN SIO N PLAN A ll of the A uthority's full-tim e em ployees participate in Plan A of the M unicipal Em ployee's Retirement System of Lonisiana (the Plan), a multiple-employer m unicipal employee retirement system.t he payrollforthe A uthority's em ployees covered by the Plan forthe years ended D ecem ber 31,2000 and 1999 w as$66,896 and $5,958,respectively. A llem ployeesof the A uthority are required to participate in the Plan if they are underthe age of60, are full-tim e em ployees,and are notparticipating in anotherpublicly funded retirem entsystem.a ny em ployee can retire provided he orshe m eets one of the follow ing criteria:any age w ith 25 orm ore yearsof credited service orage 60 w ith a m inim um of 10 yearsof credited service.retireesare entitled to a retirem entbenefit,payable m onthly forlife,equalto 3 percentof the m em ber'sfinalcom pensation m ultiplied by his years of creditable service,notto exceed 100 percentof the m em ber's finalsalary. Em ployeesbecom e fully vested on reaching 10 yearsof service.the Plan also providessurvivor'sand disability benefits.covered em ployees arc required to contribute a percentage of their salary to the Plan (therateisdetermined by theplanand can fluctuate). Ofthetotalcontributionrequired by the em ployee, the em ployees contribute 5%, w hile the A uthority contributes the rem ainder. A uthority'scontribution percentage increased from 10% to 10.5% on July 1,2000. The contribution requirem entforthe A uthority forthe yearended Decem ber3 I,2000 was$10,206,w hich consisted of $6,861 from the Authority and $3,345 from the employee. The contribution reqnirement for the Authority for the year ended December 31, 1999 was $894,which consisted of $596 from the A uthority and $298 from em ployee. The - 6 -

10 l'osllclhw a te & N ettcrvillc A ProfessionolAccounlngCorporation A~socioled O ficesinprinclpolcitiesofiheuniledslote~ R enorton C om pliance and on InternalC ontrolo ver Financial orlin~ Based on alla nditof FinancialStatem entsperform ed in A ceordancew ith Gove~ O fficersand Trustees Louisiana LocalG overn m entenvironm entalfacilities and Com m unity D evelopm enta uthority W e have audited tile financialstatem entsof Louisiana LocalGovern m entenvironm entalfacilitiesand Com m unity D evelopm enta uthority asof and forthe yearended D ecem ber3 l,2000,and have issued ourreport thereon dated April3,2001.W e conducted ourauditin accordance w ith generally accepted auditing standardsand the standards applicable to financialauditscontained in GovernmentAuditing Standards,issued by the Com ptrollergeneralof tile U nited States. Com pliance A s part of obtaining reasonable assurance about w hether tile entity's financial statem ents are free of m aterial nlisslalelyicnl,w e pertorm ed tests of its com pliance w ith certain provisions of law s,regulations,contracts and grants, noncom pliance w ith w hich could have a direct and m aterial effect on the determ ination of financial statementamounts. However,providing alopinion oncompliancewith thoseprovisionswasnotalobjectiveof ourauditand,accordingly,w e do notexpress such an opinion.the results of ourtests disclosed no instancesof noneom plianee thatarc required to be reported underg overnm enta uditing Standards. ernalcontrolo verfinancialredortine Ilplanning and perfom ling ouraudit,we considered the enlity 'sinternalcontroloverfinancialreporting in orderto determ ine ourauditing proceduresfortile purpose of expressing ouropinion on tile financialstatem entsand notto provide assurance on the internalcontrolover financialreporting. O urconsideration of tile internalcontrolover financialreporting w ould notnecessarily disclose allm atters in the intern alcontrolover financialreporting that m ightbe m aterialw eaknesses. A m aterialw eaknessisa condilion ilw hich tile design oroperation of one orm ore of the internalcontrolcom ponentsdoesuotreduce to a relatively low levelthe risk tlatm isstatem entsilam ounts thatw ould be m alerialilrelation to the financialstatem entsbeing audited m ay occurand notbe delec ed w ithin a tim ely period by em ployees ilthe norm alcourse of performing their assigned functions. W e noted no m atters invoh,ing tile internalcontroloverfinancialreporting and itsoperation thatw e considerto be m aterialw eaknesses. Thisreport is intended solely forthe information and use of Louisiana LocalG overn m entenvironm entalfacilities and Com munity DevelopmentAuthority and the Louisiana Legislative Auditor'sOffice and isnotintended to be and should notbe used by anyone otherthan these specified parties. Baton Rouge,Louisiana A pril3, United Plaza Blvd,Suite 1001 Baton Rouge,LA ]el: Fax:

LO U ISIA N A LO CA L G O V ERN M ENT EN V IRO N M EN TA L FA C ILITIES A N D C O M M U N ITY D EV ELO PM ENT A UT H O RITY

LO U ISIA N A LO CA L G O V ERN M ENT EN V IRO N M EN TA L FA C ILITIES A N D C O M M U N ITY D EV ELO PM ENT A UT H O RITY FIN A N C IA L STA TEM EN TS D EC EM BER 3 1,2002 A N D 200 1 Underprovisiona