G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA M etairte,louisiana

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1 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA M etairte,louisiana Basic FinancialStatem ents and IndependentAuditor's Report As ofthe YearEnded October31,2003 W ith Supplem entalinform ation Underprovisions ofstate law,this reportis a public document.a copy ofthe reporthas been subm ited to the entity and etherappropriate public oficials.the reportis available forpublic inspection atthe Baton Rouge ofi ce ofthe LegislativeAuditorand,w here appropriate,atthe ofice ofthe parish clerk ofcourt. ReleaseDate ~ ")~ "~Y-/ T.A.HARRIS,INC A PRO FESSIO NA L ACCO UNTING CO RPO RATIO N

2 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA Basic FinancialStatem ents And IndependentAuditor's Reports As ofand forthe YearEnded O ctober31,2003 W ith Supplem entalinform ation Schedules CO NTENTS INTRO DUCTO RY SECTIO N LetterofTransm ittal FINANCIAL SECTIO N IndependentAuditor's Reporton the FinancialStatem ents M anagem ent's Discussion and Analysis 8 10 Basic FinancialStatem ents: Statem entofnetassets Statem entofrevenues,expenses and Changes in Fund NetAssets Statem entofcash Flows Notes to the FinancialSta tem ents A 14 B 15 C Schedule Page No. Supplem entalinform ation Schedules: Schedule ofcash Receipts and Disbursem ents Schedule ofcom pensation Paid Board M em bers Schedule ofinvestm ents Schedule ofrevenue From To ls Schedule ofnorth Shore Trafic -Num berof Crossings (Unaudited) Schedule ofinsurance (Unaudited)

3 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIA NA Contents,O ctober31,2003 CONTENTS (CONCLUDED) Schedule Page No. OtherReports Required by Governm entauditing Standards - Reporton Com pliance and on Intern alcontrolo ver FinancialReporting Based on an Auditofthe Basic FinancialStatem ents Report on Com pliance with Requirem ents Applicable To Each MajorProgram and InternalControlOver Com pliance in Accordance with O M B CircularA-133 Schedule ofexpenditures offederalawards Notes to Schedule ofexpenditures offederalawards Schedule offindings and Q uestioned Costs Schedule ofprioryearfindings Division ofadm inistration Reporting Package

4 G R EA T ER N EW O R LEA N S EX PR ESSW A Y C O M M ISSIO N P.O.BO X 7656,M ETA IRIE,LO U ISIAN A ~ TELEPH O N E ~ FA X BEN SLATER I[l Chairman JOY H.ZAINEY ViceChairman BA RN EY M clain Secretary JOHN L.DONAHUE,JR. Treasurer W ILLIAM P.CON NICK AssistantSecretary/Treasurer ROBERT J.LAM BERT GeneralM anager M arch To M em bers ofthe G reaternew O rleans Expressw ay Com m ission and C itizens The Annual FinancialReport of the G reater New O rleans Expressw ay Com m ission (GNOEC)forthe fiscalyearended October31,2003,is hereby submited.responsibility forboth the accuracy ofthe data and the com pleteness and fairness ofthe presentation, including a ldisclosures,rests w ith the G NO EC 's m anagem ent. To the best of our knowledge and belief,the enclosed data is accurate in a lm aterialrespects and is reported in a m annerdesigned to presentfairly the financialposition and results ofoperations ofthe G NO EC. A ldisclosures necessary to enable the readerto gain an understanding ofthe G NO EC 's financialactivities have been included. The A nnualfinancialreportis presented in three sections:introductory,financial,and othersupplem entalinform ation. The introductory section includes this transm ittalletter. The financialsection has been prepared in accordance w ith the new G overnm ental Accounting Standard Board Statem entno.34. This section includes the fo low ing:report ofindependentauditor;managementdiscussionand Analysis (Required Supplementary Information);basic financialstatements and notes to financialstatements. The other supplem entalinform ation section includes schedules required by the Bond Indenture Agreem ents as w e las single auditrequirem ents. PR O FILE The G reater New O rleans Expressway Com m ission w as established in 1954 as the governing body with jurisdiction overthe Expressway. The Commission is a special purpose governm entengaged in business type activities. By legislative enactm ent,after allbonds,principaland interest,are fu ly paid,the Expressw ay becom es the property of the State of Louisiana and thereafterw ilbe operated and m aintained by the Louisiana

5 DepartmentofTransportation and Developmentas a tol-free (non-business type)facility and as part ofthe state highw ay system. The Com m ission provides for the policing of the Expressw ay, the operation and m aintenance ofthe Expressw ay and the associated adm inistrative services. By legislative m andate in 1986,the Com m ission provides forthe policing ofthe H uey P.Long Bridge. By a cooperative endeavor agreem ent,the Com m ission participates in a M otorists Assistance Program (MAP),which is a federalprogram through the Louisiana Department oftransportation and Development. The objective ofthe MAP program is forpolice ofi cers to facilitate trafic flow along an approxim ate eleven-m ile corridorofinterstate 10 from Jeferson to O rleans Parishes by assisting m otorists in distress. operates seven days a w eek from 6:00 a.m.to 8:00 p.m. This program SA FETY A majorpriority ofthe Commission is the safety ofthe motoring public crossing the Expressw ay. The Com m ission has im plem ented a public inform ation system thatincludes the internet,ca lboxes,variable m essage signs,radio announcem ents and brochures. The Expressw ay is patro led by its police oficers tw enty-fourhours daily. In 1995,the Com m ission began a structuralrehabilitation program to bring the Expressway up to its originaldesign standards. U pon com pletion of the rehabilitation program, structural preservation m aintenance w il be based on annual inspection report recom m endations and any extraordinary orem ergency conditions. FINA N C IA L IN FO RM ATIO N,M A NA G EM ENT A N D C O NTRO L A detailed understanding of the financialposition and operating results ofthe G NO EC is provided in the report. Presented below is a briefdescription offinancialinform ation, m anagem entoffinancialresources and obligations,and controltechniques applicable to financialresources,obligations,and inform ation. Basis ofaccounting Basis of accounting refers to w hen revenues and expenditures orexpenses are recognized in the accounts and reported in the financialstatem ents. The accrualbasis ofaccounting is used,w hich m eans revenues are recognized w hen earned and expenses are recognized w hen incurred. A ccounting System s and B udgetary C ontrol In developing and evaluating the G NO EC's accounting controlsystem,consideration is given to the adequacy ofinternalaccounting controls. Accounting controlcom prises the plan of organization and the procedures and records that are concerned w ith the

6 safeguarding of assets and the reliability of financial records and consequently are designed to provide reasonable assurance that: Transactions are executed in accordance w ith m anagem ent's generalorspecific authorization. Transactions are reported as necessary (a)to permitpreparation offinancial statem ents in conform ity w ith accounting principles genera ly accepted in the United States ofam erica orany othercriteria,such as finance-related legaland contractual compliance requirements applicable to such statements,and (b)to maintain accountability forassets. A ccess to assets is perm itted only in accordance w ith m anagem ent's authorization The recorded accountability for assets is com pared w ith the existing assets at reasonable intervals and appropriate action is taken w ith respectto any diference s. The definition ofaccounting controlcom prehends reasonable,butnotabsolute,assurance thatthe objectives expressed in itwilbe accomplished by the system. The conceptof reasonable assurance recognizes thatthe costofinternalcontrolshould notexceed the benefits.the benefits consistofreductions in the risk offailing to achieve the objectives im plicitin the definition ofaccounting control. A lintern alcontrolevaluations occurwithin this fram ework.w e believe thatthe G NO EC's acco unting controls adequately safeguard assets and provide reasonable assurance of properrecording offinancialtransactions. The G NO EC has form a ly established funds. Budgetary controlis m aintained gro up. budgetary accounting contro ls for its operating by category w ithin departm entforeach account A ccountdescription As required by the Bond Indenture Agreem ent,the accounts of the Com m ission are organized on the basis offunds and accounts,each ofw hich is considered separate accounting activity forrecording receipts and disbursements.those accounts (General, SpecialRevenue,DebtService,CapitalProjects and InternalService)are shown on Schedule 1,Pages 31 to 37 ofthis report. These accountactivities are sum m arized into the sole enterprise fund,w hich is used to acco untforongoing organizations and activities thatare sim ilarto those found in the private sector. The costof providing the serv ices to the generalpublic is recovered,in w hole orpart, through user charges. The G NO EC 's operations com prise the operation of the Expressw ay Bridge in w hich to ls are charged. Results ofoperations forthe yearended O ctober31,2003 can be found in the M anagem entd iscussion & A nalysis,page 10. 5

7 The Com m ission's operations include electro nic equipm entatthe to lplazas designed to classify vehicles,calculate the to lassessed and record those events. To facilitate the tra fic flow,electronic to ldevices read to ltags. Custom ers can acquire to ltags atthe Com m ission operated to ltag stores on both North and South Shores ofthe Expressw ay. Forthe yearended O ctober31,2003,breakdow n ofthe to lrevenues is as fo low s Dedicated forthe Rehab ImprovementPro gram $ 6,033,799 Undedicated to be Used forg eneralo perations $15,448,211 Long-Term Debt The G NOEC had the fo lowing pdnciple outstanding long-term debtato ctober31,2003 Revenue Bonds Re~ nding,sedes 2003 $54,605,000 m pro vem ents,series 1999-A $67,730,000 On April15,2003,the GreaterNew Orleans Expre ssway Commission issued $54,605,000 in Refunding and Im provem entrevenue Bonds,Series The Series 2003 bonds were issued forthe purpose ofpro viding funds to refund a lofthe Com m ission's outstanding Series 1992 bonds,finance a portion of construction costs and pay costs ofissuance ofthe Series 2003 bonds,including the costofthe Sedes 2003 bond insura nce policy and the reserve fund insurance policy. CASH MANAG EM ENT PO LICIES AND PRO CEDURES Cash receipts are deposited daily into the Com m ission's bank accounts. These funds are autom atica ly tra nsferred by the Trustee into the appropriate TrustFund accounts and are invested in accordance w ith the provisions ofthe Bond Indenture. A lbank and investm ent accounts are reconciled on a m onthly basis.

8 R ISK M A NA G EM ENT The Com m ission is exposed to various risks ofloss related to generalliability,autom otive liability, and property insurance contracts. An Internal Service Account (a risk managementaccount)is used to accountforand finance its uninsured risks ofloss.under this progra m,the risk m anagem ent account pro vides covera ge for the general and autom otive liability up to the $200,000 deductible lim its foreach covered loss. The Com m ission purchased com m ercialinsurance forclaim s in excess ofcoverage provided by the InternalServ ice Account. Settled claim s have not exceeded this com m ercial coverage forthe fiscalyear. Additionalinform ation on the Com m ission's risk m anagem ent activity can be found in the notes to the financialstatem ents on Page 25. IN D EPEN D ENT A U D IT The financialrecords,books ofaccount,and transactions ofthe G N O EC forthe fiscalyear ended O ctober 31, 2003 have been audited by T. A. Harris, Inc., Certified Public Accountant,and the opinion is included in the FinancialSection of this report. The financialstatem ents are the responsibility ofthe G NO EC. The responsibility ofthe independentauditoris to express an opinion on the G NO EC's financialstatem ents based on the audit. An audit is conducted in accordance w ith auditing standards genera ly accepted in the United States ofa m erica. Those standards require thatthe audit be planned and perform ed in a m annerto obtain a reasonable assurance as to w hetherthe financialstatem ents are free ofm aterialm isstatem ent. Respectfu ly subm itted Superv isorof Finance

9 T.A.H arris Inc.CertifiedPublicAccountant A ProfessionalAccounting Corporation INDEPENDENT AUDITO R'S REPORT G reaternew Orleans Expressway Com m ission State oflouisiana M etairie.louisiana W e have audited the accom panying basic financialsta tem ents ofthe GreaterNew Orleans Expressway Commission (the Commission),a componentunitofthe State oflouisiana,as ofand forthe yearended O ctober31,2003,as listed in the table ofcontents.these financialstatem ents are the responsibility ofthe Commission's management.ourresponsibility is to express an opinion on these financialstatements based on ouraudit. W e conducted ourauditin accordance w ith auditing standards genera ly accepted in the United Sta tes of Am erica and Governm entauditing Standards,issued by the Com ptro lerg eneralofthe United States. Those standards require thatwe plan and perform the auditto obta in reasonable assurance aboutw hether the financialstatem ents are free ofm aterialm isstatem ent.an auditincludes exam ining,on a testbasis, evidence supporting the am ounts and disclosures in the financialstatem ents. An auditalso includes assessing the accounting principles used and significantestim ates m ade by m anagem ent,as welas evaluating the overa lbasic financialstatem ent presenta tion. W e believe thatour audit provides a reasonable basis forouropinion. In ouropinion,the basic financialstatem ents referred to above presentfairly,in a lm aterialrespects,the financialposition ofthe Com m ission as ofoctober31,2003,and the changes in its netassets and its cash flows forthe yearthen ended in conformity with accounting principles generaly accepted in the United States ofam erica. As described in note I-A to the basic financialstatem ents,the Com m ission adopted the provisions of G overnm ental Accounting Standards Board Statem ent No. 34, Basic Financial Statem ents - and M anagem ent's Discussion and Analysis -for State and LocalGovern m ents, as ofnovem ber1,2000. M anagem ent's Discussion and Analysis on pages 10 through 13 are nota required partofthe basic financial statem ents butis supplem entary inform ation required by the G overnm entalaccounting Standards Board. W e have applied certain lim ited procedures,which consisted prim arily ofinquires ofm anagem entregarding the m ethods ofm easurem ents and presenta tion ofthe supplem entary inform ation. However,we did not auditthe inform ation and express no opinion on it. In connection w ith ouraudit,nothing cam e to oura tention thatcaused us to believe thatthe Com m ission failed to com ply w ith the term s,covenants,orprovisions ofthe GeneralBond Resolution dated Septem ber 25,1986.and as supplem ented by the Series 1992,1999A,and 2003 bond resolutions dated Decem ber4, 1992,June 16,1999,and April15,2003 respectively,insofaras they relate to accounting m a ters. However, ourauditwas notdirected prim arily toward obtaining knowledge ofsuch noncom pliance. In accordance w ith Governm entauditing St andard s,w e have also issued ourreport dated M arch 29,2004, on ourconsideration ofthe Com m ission's internalcontroloverfinancialreporting and ourtests ofits com pliance with certain provisions oflaws,regulations,contracts and grants.thatreport is an integralpart ofan auditperformed in accordance with GovernmentAuditing St andards and should be read in conjunction w ith this report in considering the results ofouraudit Justice Avenue ~ Suite A. Baton Rouge,Louisiana Voice (225) ~Fax (225) o taharrisinc@ belsouth.net

10 Ourauditwas conducted forthe purpose ofform ing an opinion on the Com m ission's basic financial statem ents.the accom panying supplem entalinform ation schedules listed in the table ofcontents and the "AnnualFinancialReport"as required by the Louisiana DIvision ofadm inistration are presented forpurposes ofadditionalanalysis and are nota required part ofthe basic financialstatem ents ofthe Com m ission.such inform ation,exceptthose schedules m arked "Unaudited",on which w e express no opinion,has been subjected to the auditing procedures applied in the auditofthe basic financialstatem ents and,in ouropinion, is fairly stated in a lm aterialrespects in relation to the basic financialstatem ents taken as a whole. W e did notauditthe introductory section listed in the table ofcontents,and,accordingly,we do notexpress an opinion thereon. S (;- M arch 29,2004 Baton Rouge,Louisiana

11 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA M anagem ent's Discussion and Analysis The m anagem ent's discussion and analysis of the G reater New O rleans Expressway Com m ission's financial perform ance presents a narrative overview and analysis of the Com m ission's financialactivities forthe yearended O ctober31,2003.this docum entfocuses on the currentyear's activities,resulting changes and currently known facts. Please read this document in conjunction with the additional inform ation contained in the transm ital leter presented on pages 3-7 and the Com m ission's financialstatem ents,which begin on page 14. FINANCIAL HIG HLIG HTS The Com mission's assets exceeded its liabilities atthe close offiscalyear2003 by $61,686,851 compared to $56,527,896 forfisca lyear2002,an increase of$5,158,955 (or9.1%). The Commission'stolrevenue increased $ 768,239 (or5.2%)compared to the priorfiscalyear The accrued amountfrom Highway Fund #2 (VehicularLicense Tax),which is dedicated to debtservice,increased by $890,891(or19.2%). OVERVIEW O F THE FINA NCIAL STATEM ENTS This discussion and analysis is intended to serv e as an introduct ion to the G reaternew O rleans Expressway Com m ission's financial statem ents, which are com prised of the basic financial statem ents and the notes to the financialstatem ents. Contrary to the governm entalfund type m odelannualfinancialre port presented in prioryears,no fund levelfinancialstatem ents are presented because the Com m ission is engaged in a single enterprise,which is the m ovem entof vehiclesoverbridges (infrastructure assets).underthe new reporting model,the basic financial statem ents of the Com m ission w ilbe less com plex and pre sentfinancialinform ation for the Com m ission as a w hole in a form atdesigned to m ake the statem ents easierforthe readerto understand. The annualfinancialreport includes the Sta tem entofnetassets;the Statem entof Revenues,Expenses,and Changes in NetAs sets;the Statem entofcash Flow s;and Notes to the FinancialStatem ents. In addition to the basis financialstatem ents and the accom panying notes,other inform ation in this re port presents certain supplem entary inform ation concerning separate accounting activity re quired by bond indentures and/orbond resolutions. The basic financialstatem ents are designed to provide readers with a broad overv iew ofthe Com m ission's finances in a m annersim ilarto a private sectorbusiness. Basic FinancialStatem ents The basic financialstatem ents present inform ation for the G reater New O rleans Expressway Com m ission as a whole in a form atdesigned to m ake the statem ents easierforthe re aderto understand. The statem ents of this section include the Statem entofnetassets;the Statem entof Revenues,Expenses,and Changes in NetAs sets ;and the Statem entofcash Flows. (page 14)presentsthe currentand long-term portionsofassets and liabilities separately. The diference betw een tota lassets and totalliabilities is netassets and m ay provide a useful indicator of whether the financial position of the Com m ission is im proving ordeteriorating. The StatementofRevenues,Expenses,and Changes in Fund NetAs sets(page 15)presents inform ation show ing how the Com m ission's assets changed as a result of current year operations.regardless ofw hen cash is afected,a lchanges in netassets are reported when the underlying transactions occur.as a result,there are transactions included thatw ilnotafect cash untilfuture fiscalperiods. 10

12 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA M anagem ent's Discussion and Analysis The Cash Flow Statement(pages16-17)presentsinformation showing how Commission's cash changed as a resultofcurrentyearoperations.the cash flow statem entis prepared using the direct m ethod and includes the reconci{iet~ n of operating incom e to net cash provided by operating activities (indirectmethod)as required by GASB 34. FINANCIAL ANALYSIS O F THE ENTITY N e t A s s e ts C u rre n t a n d o th e r a s s e ts C a p ita l a s se ts T o ta l a s s e ts O th e r lia b L o n g -te rm T o ta l lia b / $ 5 3,1 4 5, ,1 6 9, ,3 1 4, ,1 8 4, , , $ 5 1,0 9 8, , ,7 1 8, , T o ta l n e t a s s e ts The composite netassetamountof$61,686,851as ofoctober31,2003 consists ofinvestmentin capitalassets,restricted netassets,and unrestricted netassets in the am ounts of$15,471,389, $38,319,062,and $7,896,409 respectively. The composite netassetamountof$56,527,896 as of October 31, 2002 consisted of investm ent in capital assets, restricted net assets, end unrestricted net assets in the amounts of $12,178,078, $36,597,932, and $7,751,886, respectively. The Commission's equity interest(capitalassets lessrelated outstanding debt)in its capitalassets is reported w ithin the investm entin capitalassets,netofrelated debtam ount. Restricted netassets representthose assets thatare notavailable forspending as a resultof legislative requirem ents, grant requirem ents, and bond end other resolutions. Conversely, unrestricted netassets are those thatdo nothave any lim ita tions on w hatthese am ounts m ay be used. As referred to previously,netassets ofthe Com mission increased by $5,158,955,or9.1%,from October31,2002 to October31,2003.A majorcause ofthis increase isthatuserfees,etcetera, were greaterthan the costof operations. In addition,capitalim provem ents are notcharges againstcurrentrevenues butare capitalized w ithin the property,plant,and equipm entaccount and depreciated overfuture periods.

13 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIA NA M anagem ent's Discussion and A nalysis C hanges in NetAssets 10/31/ O perating revenues O perating expenses O perating incom e Non-operating revenues(expenses) $ 15,934,381 12,650,401 $ 15,129,727 11,514, ,615, ncrease in netassets From fiscalyear2002 to 2003,the Com m ission's totalrevenues,including operating and nonoperating revenues,increased by $178,838 or.79%.this increase is due to an increase from Highway Fund #2 (VehicularLicense Tax)and in an increase intolrevenues.conversely,from fiscalyear2002 to 2003,the totalcostofalprogram s and services,excluding depreciation, increased by $138,166 or1.0%. CAPITAL ASSETS AND LO NG -TERM DEBT ADM INISTRATIO N CapitalAssets Atthe end of2003,the Com mission had $84,169,366 invested in a bro ad range ofcapitalassets, including the expressway bridge,building,vehicles,furniture,fixtures and equipm ent. C ap,tata ssets aty ear-end (N etofd epreciation) B uilding and im provem ents Furniture,fixtures,and equipm ent Infrastructure T ota 10131/2003 $ 1,043,649 1,335, /2002 $ 1,073,754 1,245,701 77~243,623 12

14 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIA NA M anagem ent's Discussion and Analysis This year's majoradditions included: Bridge im provem ents Furniture,fixtures,and equipm ent Total The Comm ission had $68,697,986 in currentand noncurrentbonds outstanding atyear-end, compared to $67,385,000 lastyear,an increase of2.06%. O utstanding Debt,atYear-end Revenue and Refunding Bonds The Com m ission's bond indebtness carries a Standard & Poor's A+ rating On April15,2003,the Com m ission issued Series 2003 bonds forthe purpose ofproviding funds to refund a lofthe Com m ission's outstanding Series 1992 bonds,finance a portion of construction costs and pay costs ofissuance ofthe Series 2003 bonds,including the costofthe Series 2003 bond issuance policy and the reserve fund insurance policy. The Comm ission has estimated claims of$567,267 outstanding atyear-end compared with $723,486 lastyear.otherobligations include accrued vacation pay and sick leave of$857,495 compared to $917,248 forthe October31,2003 fiscalyear. BUDG ET The annualbudgetis approved by the Com m ission atthe Octoberm eeting.the budgetis then approved by the jointbudgetcommitee ofthe Louisiana Legislature.An updated projected budgetwas prepared in September2003.The majordiference between the originalbudgetand the updated budgetwasthatthe amountavailable forthe Bridge RehabilitationProjectswas increased by $500,496 or9.7%.thisresulted from a projection ofhighertolrevenue and the additional$0.50 alocated to the Rehabilitation Projects. CO NTACTING THE G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N'S FINANCIAL M ANAG EM ENT This financialreport is designed to provide citizens,investors and creditors w ith a general overview ofthe G reaternew O rleans Expressway Com m ission's finances. Ifyou have any questions aboutthis report,contactthe Superv isoroffinance,g reaternew O rleans Expressway Com m ission,p.o.box 7656,M etairie,louisiana

15 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA Statem entofnetassets O ctober31,2003 ASSETS CURRENT ASSETS: Cash and cashequivilents(note 2) Investments(note 3) Receivables(note 4) Prepaid item s Inventory Totalcurrentassets NONCURRENT ASSETS Restricted assets: Investments(note 3) Receivables (note 4) Totalrestricted assets Property,plant,and equipment(net)(note 5) Deferred bond issuance costs,netofamortization of$27,384 Totalnoncurrentassets TOTAL ASSETS LIA BILITIES CURRENT LIABILITIES: Payables (note 12) Deferred revenue Liabilities payable from restricted assets Capitalprojects(note 12) Bonds Accrued interest Totalcurrentliabilities NO NCURRENT LIABILITIES: Tag deposits Estimated liability forclaims (note 7) Accrued compensated absences (note 9) Bonds payable (note 13) O ther Totalnoncurrentliabilities Totalliabilities NET ASSETS: Investmentin capitalassets,netofrelated debt(note 14) Restricted netassets (note 14) Restricted forfuture acquisition (note 14) Unrestricted netassets Totalnetassets $ 2,150,335 7,277,730 5, , ,589,243 2,043,084 41,632,327 84,169,366 1,643, $ , ,215 1,704,648 1,254,820 1,633, , , ,495 67,443,166 10,983 ~ 69,638, ,471,380 38,294, ,896,409 $ 61,686,851 The accom panying notes are an integralpart ofthis statem ent. 14

16 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIA NA STATEM ENT O F REVENUES,EXPENSES AND CHA NG ES IN FUND NET ASSETS Forthe YearEnded O ctober31,2003 Statem entb OPERATING REVENUES To ls Leases Otherm isce laneous revenue Totaloperating revenues $ 15,448, , ,462 15, OPERATING EXPENSES Personalservices Contractualserv ices Operating services Supplies and m aintenance Professionalservices Administrative Depreciation Claim s expense Totaloperating expenditures 4,466, ,829,609 1,866, , ,440 3,715,449 62,261 12,650,401 OPERA TING INCOM E NON-OPERATING REVENUES(EXPENSES) Intergovernm entalrevenue: Federalgrants(note 15) State grants M agnetic Levitation expenses Vehicularlicense tax Payments to parishes Investm entincom e: Interestincom e Netdecrease in fairvalue ofinvestm ents Interestexpense Amortization ofcostofissuance Loss on disposaloffixed assets Gain on disposalofinvestm ent 519,678 89,300 ( ) 5,524,743 (350,000) 592,518 (3,275) ~,386,421) (27,384) (1,813) Totalnon-operating revenues INCOME BEFORE CONTRIBUTIONS 5, CAPITAL CO NTRIBUTIONS CHANGE IN NET ASSETS 5,158,955 NET ASSETS AT BEGINNING O F YEAR NET ASSETS AT END O F YEA R The accom panying no. s am an in~ gm lpa~ ofthis statem ent. 15

17 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIA NA STATEM ENT O F CASH FLOW S FO R THE YEAR ENDED O CTO BER 31,2003 Cash flow s from operating activities Cash received from custom ers,including cash deposits Cash received from use ofproperty Cash received from otherdeposits Cash paid to suppliers forgoods and services Cash paid to em ployees forservices Cash paid to outsiders forclaim s Netcash provided foroperating activities 15,517, ,708 74,201 (5,091,969) (4,684,814) (218,279) Cash flow s from non-capitalfinancing act ivities Subsidy from federa lgrant Subsidy from state and loca lgrants Cash paid to suppliers forgoods and services (Mag Lev) Vehicularlicense tax Subsidy to localgovernm ents Netcash flows from non-capitalfinancing activities Cash flow s from capitaland related financing activities Purchase ofcapitalassets Principalpaym ents m ade on bonds Interestpaid and CostofIssuance Bond proceeds(net) Netcash used forcapitaland related financing activities 597,691 52,885 (443,876) 4,751,129 (350,000~ (6,248,889) (54,260,000) (4,937,777) 54,180,307 (11,266,359) Cash flow s from investing activities Purchase ofinvestm entsecurities Proceeds from sale ofinvestm entsecurities Interestand dividends earned on investm entsecurities Netcash provided forinvesting activities (309,443,303) 309,020, Netdecrease in cash and cash equivalents Cash and cash equivalents atbeginning of year (348,821) Cash and cash equivalents atend of year 2,150,335 (Continued) The accom panying notes are an integralpartofthis financialstatem ent. 16

18 Statem entc G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIA NA Statem entofcash Flow s Forthe YearEnded O ctober31,2003 Reconciliation ofoperating income to netcash provided (used) by operating activities: Cash flows from operating activities: Operating income $ 3,283,980 Adjustments to reconcile operating income to netcash provided by operating activ~ties Depreciation M agnetic Levitation Expenses Changes in assets and liabilities: Increase in prepaid item s Increase in receivables (netofnon-operating receivables) Increase inpayables(netofmag Lev) Decrease in com pensated absences payable Decrease in claim s liability Increase in unearned tag deposits Increase in unearned revenue Netcash provided by operating activities 3,715,449 (115,555) (102,144) (971,019) 298,417 (59,753) (156,219) 46,990 23,049 Noncash investing,capital,and financing activities: Decrease in fairvalue ofinvestm ents (Concluded) The accom panying notes are an integralpartofthis statem ent 17

19 G REATER NEW ORLEANS EXPRESSW AY COM M ISSION STATE O F LO UISIA NA Notes to the FinancialStatem ents As ofand forthe YearEnded O ctober31,2003 NTRO DUCTIO N The Com m ission is governed by five m em bers,three ofwhom are appointed by the governor, including one m em berfrom Jeferson Parish and anotherm em berfrom St.Tam m any Parish for a term oftwo years each. The third m em berappointed by the governoris fora one-yearterm altern ately from Jefers on and St.T am m any parishes. O fthe rem aining tw o m em bers,one m em beris appointed from Jeferson Parish by the Jeferson Parish Council,and one m em beris appointed from St.Tam m any Parish by the St.Tam m any Parish Councilfortw o-yearterm s. SUM M ARY O F SIG NIFICA NT ACCO UNTING PO LICIES A. BASIS O F PRESENTATIO N The accom panying financialstatem ents have been prepare d on the fu laccrualbasis in accordance w ith accounting principles genera ly accepted in the United States of America. The Government Accounting Standards Board (GASB) is the accepted standard-setting body forestablishing govern m entalaccounting principles and financial reporting standards. The Com m ission applies a lgasb pronounce m ents as we las FinancialAccounting Standards Board (FASB)statements and interpretations issued on orbefore Novem ber30,1989,unless those pronouncem ents conflictwith orcontradict GASB pronouncem ents. These financialstatem ents include the im plem entation ofg ASB Statem entnum ber34, Basic FinancialStatem ent- M anagem ent's Discussion and Analysis-for State and Local Governm ents and related standards.this new standard provides forsignificantchanges 18

20 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIA NA Notes to the FinancialStatements (Continued) in term inology,recognition ofcontributions in the Statem entofrevenues,expenses and Changes in Net Assets, inclusion of a m anagem ent discussion and analysis as supplem entary inform ation and otherchanges. B. REPO RTING ENTITY GASB Codification Section 2100 has defined the governm entalreporting entity to be the State o fl ouisiana. The C om m ission is c onsidered a com ponentu nitofthe S tare o f Louisiana because the state exercises oversightresponsibility and has accountability for fisca lmaters as folows: (1)a majority ofthe members ofthe govern ing board are appointed by the governor;(2)the state has controland exercises authority overbudget matters; (3) upon the ful payment of revenue bonds principal and interest, the expressway bridge becomes property ofthe State oflouisiana;(4)the state sets bonded debtlimitsforconstruction and improvements;and (5)the Commission primarily serves state residents. The acco m panying financialstatem ents presentinform ation only as to the transactions of the activities of the G re ater New O rleans Expressway Com m ission, a com ponent unit of the Sta te of Louisiana. Annualy, the State of Louisiana issues basic financialstatem ents,which include the activity contained in the accom panying financialsta tem ents. C. FUND ACCO UNTING D. BASIS O F ACCO UNTING The accounting and financial reporting treatm ent applied to the Com m ission is determ ined by its m easure m ent focus. The transact ions of the Com m ission are accounted for on a flow of econom ic resources m easure m ent focus. W ith this m easurem ent focus, a lassets and a l liabilities associated with the operations are included on the Statem entof NetAssets. Netassets are segre gated into invested in capitalassets,netofrelated debt;restricted netassets,and unrestricted netassets. 19

21 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA Notesto the FinancialStatements (Continued) E. BUDG ET PRA CTICES The Com m ission prepares its budget in accordance w ith the Louisiana Local Governm entbudgetact,r.s.39:1301o1315. The generalm anagersubm its proposed operating budgets to the G reater New O rleans Expressway Com m ission and to the generalpublic forinspect ion. The budgets are prepared on a m odified accrualbasis of accounting. Forthe period underaudit,the proposed budgets were advertised in the officialjournalon October16,2003. Atthe board meeting on October30,2003,the 2004 budgetwas form a ly adopted by the Com m ission. Annua ly,in July the original budgetis am ended by m anagem entand is ratified by the board of the Com m ission during O ctober. F. CASH AND INVESTM ENTS Cash includes petty cash and dem and deposits. Under state law,the G reater New O rleans Expressway Com m ission m ay deposit funds w ithin a fiscal agent bank organized underthe law s ofthe State of Louisiana,the laws ofany otherstate in the Union,orthe laws ofthe United States. Furtherm ore,the Com m ission m ay investin certjficates ofdepositofstate banks organized underlouisiana law and nationalbanks having theirprincipalofi ces in Louisiana. Under state law,the Com m ission m ay invest in United Sta tes Treasury obligations, United States governm ent agency obljgatjons, and direct security repurchase agreem ents,orin eligible m utualfunds thatinvestin these secudties. Investm ents are stated atfairvalue. G. PREPAID ITEM S Paym ents to vendors for insurance include costs applicable to the next accounting period and are recorded as prepaid item s. H. INVENTO RY The and Com m ission m aintains an inventory ofspare bridge com ponents forem ergency use is valued atthe low erofcostorm arket. The inventory is expensed w hen used. I, PROPERTY,PLANT AND EQUIPM ENT Property,plantand equipm entare recorded atcost,ifpurchased orconstructed. Assets acquired through contributions are capitalized attheirestim ated fairvalue,ifavailable,or atestim ated fairvalue orcostto co nstructatthe date ofthe co ntribution. Equipm ent includes alitems valued above $1,000 and infrastructure includes the costto co nstruct and im prove the tw in bridges and related roadway approaches. Assets are depreciated using the straight-line m ethod overthe usefullives ofthe assets as fo low s:

22 GREATER NEW O RLEA NS EXPRESSW AY COM M ISSION STATE O F LO UISIA NA Notes to the FinancialStatements (Continued) Years Autom obiles Data processing equipm ent Furniture and fixtures Buildings Infrastructure J. RESTRICTED ASSETS Restricted assets representunexpended revenue bond proceeds as we las certain other resources setaside forthe purpose ofim provem ents to capitalassets and funding debt service paym ents in accordance w ith bond resolutions. In addition,restricted assets include resources setaside forrisk m anagem entand dedicated grantproceeds. K. CO M PENSATED ABSENCES Em ployees earn and accum ulate annualand sick leave atvarious rates,depending on their years of service. Annualand sick leave that m ay be accum ulated by each em ployee is unlim ited. Upon term ination,em ployees ortheirheirs are com pensated for a laccum ulated annualleave and up to 120 days ofunused sick leave atthe em ployee's hourly rate of pay at the tim e of term ination. Upon retirem ent,any unco m pensated annualleave atthe em ployee's option plus unused sick leave in excess of120 days is used to com pute retirem entbenefits. Com pensated absences are recognized as an expense and liability in the financial statem ents w hen incurred. L. LO NG ~ ERM O BLIGATIO NS Long-term obligations are reported atface value M. PO STEM PLOYM ENT HEALTH CARE AND LIFE INSURA NCE BENEFITS N. DEFERRED CO M PENSATIO N PLA N

23 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA Notesto the FinancialStatements (Continued) A lam ounts ofcom pensation deferred,a lproperty and dghts purchased,and alincom e, property,orrights are (untilpaid ormade available to the employee orotherbeneficiary) held in trustby Pan Am erican Life Insurance Com pany forthe exclusive benefitofthe participants and theirbeneficiaries. Participants m ay contribute up to 20% oftheirsalary w ith the Com m ission m atching up to $72 per month,but totalco ntributions may not exceed $12,000 annualy. A l contributions are immediately vested.the Commission contributed $81,756 to the plan during the yearended O ctober31,2003. O. NET ASSETS Netassets com prise the various netearnings from operation,non-operating revenues, expenses and contributions ofcapital. Netassets are classified in the fo low ing three com ponents: Invested in capitalassets,netofrelated debt- Consists ofa lcapitalassets,net of accum ulated depreciation and reduced by the outstanding balances of any bonds orotherborowings thatare attributable to the acquisition,construction or im provem entofthose assets. Restricted -Consists ofexternalconstraints placed on netassetuse by creditors, grantors,contributors,orlaws orregulations ofothergovernm ents orconstraints im posed by law through co nstitutionalprovisions orenabling legislation. Unrestricted netassets - Consists ofa lothernetassets thatare notincluded in the othercategories previously m entioned. 2. CASH AND CASH EQUW ILENTS AtOctober31,2003,the Commission has ca sh (book balances)totaling $2,150,335 A sum m ary ofthe Com m ission's ca sh fo lows Pety cash Dem and accounts: Noninterest-bearing Interest-bearing $ 1,600 1,049,956 1,098,779 Total Understate law,these deposits (orthe re sulting bank balances)mustbe secured by federal depositinsura nce orsim ilarfederatsecurity orthe pledge ofsecurities ow ned by the fiscalagent banks. The fairvalue ofthe pledged securities plus the federalsecurity m ustata ltim es equal the am ounton depositw ith the fisca lagents.ato ctober31,2003,the Com m ission had

24 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA Notes to the FinancialStatements (Continued) $2,178,182 in deposits (colected bank balances)thatwere secured from risk in the folowing m anner: 1.insured orcouateralized with securities held by the com m ission orits agency in the com m ission's nam e 2. Co lateralized with securities held by the pledging Institution's trustdepartm entoragentin the com m ission's nam e Totalsecured bank balances The colected bank balances were fu ly secured and orco lateralized ato ctober31,2003 Catego~ 2 3 Reported Am ount Fai~ Value ~ovem m entsecurities: FederalFarm CreditBank FederalHome Loan Mortgage FederalNationalMortgage Association $4,569,189 $4,569,189 $4,569,189 22,410,646 22,410,646 22,410,646 8,385,475 8,385,475 8,385,475 NON.~ E NONE $35,365,310 35,365,310 35,365,310 Money m arketfunds Totalinvestm ents $46,866,973 $46,866,973

25 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA Notesto the FinancialStatements (Continued) 4. RECEIVABLES AtOctober31,2003,the Commission has receivable balances totaling $2,048,145 as folows Unrestricted Restricted Total Vehicularlicense tax Interest Other Totalreceivables $1,828,772 $1,828,772 $3,985 2,683 6, ,705 $5,061 $2,043,084 $2,048, CHANG ES IN CAPITAL ASSETS A sum m ary ofchanges in capitalassets is as fo lows: Balance Novem beri, 2002 Additions Balance October31 Deletions 2003 Business Type Activities: Capitalassets,being depreciated: Building Furniture,fixtures,and equipm ent infrastructure Totalcapitalassets,being depreciated $1,204,210 3,427,337 $597,262 $206, ,968,633 7,726, ,590,180 8,323, ,996 $1,204,210 3,817, ,684, ,734 Less accum ulated depre ciation for: Building Furn iture,fixtures,and equipm ent Infrastructure Totalaccumulated deprecia6on Totalcapitalassets,being depreciated,net 6. RETIREM ENT SYSTEM 130,466 2,181,636 90,715,0t0 93,027,102 30, , , ,183 2,481,744 3,180,053 93,S95,063 3,715, ,183 96,537,368 $1,813 Substantialy a l em ployees of the Com m ission are m em bers of the Louisiana Parochial Employees Retirement System (System),a costsharing,multiple-em ployer,defined benefit pension plan. The System is a statew ide public em ployee retirem entsystem forthe benefitof parochialem ployees,w hich is adm inistered and contro led by a separate board oftrustees. A lcom m ission em ployees working 28 hours perweek are eligible to participate in the System. Benefits vest w ith 7 years of service, At retire m ent age,em ployees are entitled to annual benefits equalto 3% oftheirhighestconsecutive 36 m onths'average salary m ultiplied by their years of credited service, Vested em ployees are entitled to a retirem ent benefit, payable monthly forlife at(a)any age with 30 years ofservice,(b)age 55 with 25 years ofservice,or(c) age 60 with 10 years ofservice. In addition,vested em ployees have the option ofre duced benefits atany age with 20 years ofserv ice.beginning January 1,2002 active m em bers m ay be 24

26 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIA NA Notesto the FinancialStatements (Continued) eligible to retire atage 65 with seven years ofservice credit. The System also provides death and disability benefits. Benefits are established or am ended by state statute. The System issues an annual publicly available financial report that includes financial statem ents and required supplem entary inform ation forthe System. Thatreport m ay be obtained by writing to the Louisiana ParochialEm ployees Retirem entsystem,posto fice Box 14619,Baton Rouge, Louisiana ,orby caling (225) Mem bers are required by state statute to contribute 9.50% ofgross salary,and the Com m ission is required to contribute at an actuaria ly determ ined rate as required by R.S. 11:62. The em ployer contribution rate was 7.75% of annual covered payro l in fiscal years ended O ctober31,2003,2002,and 2001,respectively. The Com m ission contributions to the System for the years ending October 31,2003,2002,and 2001,were $258,722,$249,739,and $241,470,respectively,equalto the required contributions foreach year. 7. RISK M ANAG EM ENT The Com m ission is exposed to various risks of loss relating to generalliability,autom otive liability,and property insurance contracts and has a self-insured risk m anagem entprogram to account for and finance its uninsured risks of loss. Under this program,the Com m ission provides coverage forgeneraland automotive liability up to the $200,000 deductible limitsfor each covered loss. The Com m ission purchased com m ercialinsurance forclaim s in excess of coverage provided by the risk m anagem entprogram. Settled claim s have notexceeded this com m ercialcoverage forthe fiscalyear. The Com m ission is a defendant or co-defendant in 6 lawsuits in w hich the plaintifs a lege wrongfuldeath,property damage,personalinjury,age discrimination,v iolation o fthe w histle blower statue, violation of civil rights, and em ploym ent retaliation. In the opinion of the Com m ission's legalcounsel,the ultim ate resolution ofnine m atters should notm ateria ly afect the financialstatements. Two lawsuits (one automobile accident and one employment retaliation matter)are in the discovery phase and the likely outcome is notdetermined. In the assessm ent of the last four m atters,one autom obile accident w ilprobably result in som e am ountof loss and there is a reasonable possibility thata loss exposure could resultin the rem aining three lawsuits. Accounting recognition forthe potentialloss exposure is provided for in the fo low ing paragraph. AtOctober31,2003,the claims liability of$567,267 is based on the requirements ofgasb Statem entnum ber10,w hich requires thata liability forclaim s be reported ifinform ation before the issuance o fthe financialstatem ents indicates thatitis probable thata Iiability h as been incurred atthe date ofthe financialstatem ents and the am ountofthe loss can be reasonably estim ated. Changes in the claim s liability in fiscalyear2003 were as fo lows:

27 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA Notes to the FinancialStatements (Continued) Estim ated liability forclaim s atbeginning ofyear Currentyear: Claim s Changes in estim ates Claim s paym ent $723,486 $218,847 (156,219) ~218,847) Estimated liability forclaims atend ofyear 8. PO STEM PLOYM ENT HEALTH CARE AND LIFE INSURANCE BENEFITS Substantia ly a l Com m ission em ployees becom e eligible for postem ploym ent health care, dental,and life insurance benefits ifthey re ach norm alretire m entage w hile working forthe Com m ission. These benefits forre tirees and sim ilarbenefits foractive em ployees are provided thro ugh an insurance com pany whose premiums are paid jointly by the employee and the Com mission.for2003,the costofproviding those benefits forthe 30 retire es totaled $102, CO M PENSATED A BSENCES As ofoctober31,2003,em ployees ofthe Commission have accumulated and vested $857,495 ofem ployee annualand sick leave benefits,which was com puted in accordance with GASB Codification Section C LEASE AND RENTA L CO M M ITM ENTS Efective May 31,1996,the Commission entered into a fifty-yearproperty lease from the City of Mandevile ata costof$25 peryear. 11. LESSO R O PERATING LEASES The G reaternew O rleans Expre ssway Com m ission (eases lim ited portions ofthe expressway bridge necessary to accom m odate telecom m unication equipm entand cables. Future m inim um rentalpaym ents to be received underthese operating leases are as fo low s: Fiscalyearending O ctober $378,O82 385, , , , ,310 Tota

28 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA Notesto the FinancialStatements (Continued) The fo lowing is a sum m ary ofpayables ato ctober31,2003: Accounts payable Payro ldeductions and em ployer's payable Payable to padshes -statutory $422,752 46, LO NG -TERM DEBT The fo low ing is a sum m ary ofthe long-term obligation transactions for2003 fiscalyear: Revenue bonds: Refunding.Sedes 1992 im provements.series 1999A Refunding,Series 2003 Totalrevenue bonds payable Debt Payable at Novem ber $ ,000 Additions Deductions and Retirem ent $ 53,610, ,000 Debt Payable at October $ 13,125,000 54,605,000 67,730,000 Due within one year 680, ,230,000 Bond Premium (Discount) , ,254,820 Com pensated absences Total The additions and reductions to com pensated absences during the fiscalyear represent the net change during the year beca use the additions and deductions could not readily be determ ined. A. REVENUE BO NDS,SERIES 1999A On July 27,1999,the Com m ission issued $15,000,000 ofrevenue Bonds,Series 1999A.The proceeds of this issue w il be used to finance the cost of certain im provem ents to the expressway bridge. The Revenue Bonds payable at the beginning of the year were $13,775,000. Principaldue and retired on November 1,2002,amounted to $650,000 and reduced the outstanding bonds payable to $13,125,000 atoctober31,2003. The Revenue Bonds,Series 1999A,are secured by userfees,expressw ay bddge toils,and otherrevenues. These bonds require future annualdebt service instalments of $680,000 to $1,265,000 beginning Novem ber1,2003,through Novem ber1,2016. The bonds ca rry interestrates from 4.25% to 5.25% and interestto maturity amounts to $5,560,042 through Novem ber1,2016.

29 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIA NA Notesto the FinancialStatements (Continued) B. REFUNDING REVENUE BO NDS,SERIES 2003 On April15,2003,the Commission issued $54,605,000 in Refund Revenue Bonds,Series 2003 to refund the 1992 issue,as welas to finance the costofthe Projectco nsisting ofsafety and capacity im provem ents to the North To l Plaza parking area and safety and capacity im provem ents atwestbound W estesplanade Avenue and Causeway Boulevard. The Refund Revenue Bonds payable atthe beginning ofthe yearwere $0. Principaldue and retired on November1,2002,amounted to $0 and reduced the outstanding bonds payable to $54,605,000 ato ctober31,2003. The Refund Revenue Bonds are secured by userfees,expressway bridge to ls,and other revenues. These bonds require future annualdebt service insta lm ents of $550,000 to $3,210,000 beginning Novem ber1,2003,through Novem ber1,2033. The bonds carry interestrates from 2.00% to 5.00% and interestto maturity amounts to $49,280,918 through Novem ber1,2033. The annualrequirem ents to am ortize a lbonds outstanding ato ctober31,2003,including total interestto maturity of$54,840,960 are as folows: FiscalYear Revenue Bonds ;funding Series 1999A Refunding Sedes O OO $680, , , , , ,000 4,940,000 3,605,000 $654, , , , , ,150 1,738, ,089 $550,000 $1,306,361 $3,190,874 1,050,000 2,388,439 4,763,202 1,010,000 2,367,439 4,720,702 1,060,000 2,347,239 4,741,002 1,080,000 2,326,039 4,753,377 1,105,000 2,301,739 4,739,889 6,015,000 11,018,672 23,711,835 7,285,000 9,748,864 21,023,953 9,220,000 7,811,626 17,031,626 11,630,000 5,403,250 17,033,250 14,600,000 2,261,250 16,861,250 C. DEFEASED ISSUE In Aprilof2003,the Comm ission issued $ milion in bonds. The purpose ofthis issue was to provide construction m onies as we las m onies to refund the 1992 bonds. In orderto refund the bonds,portions o fthe proceeds o fthe new issue w ere deposited and held in a n escrow account created in the Debt Service Fund and service d by an escrow trustee. T he am ountofthe escrow,togetherwith interestand eam ings,w ilbe used to pay the principal, redem ption prem ium s,and interestwhen due. The refunding resulted in reducing the totaldebt service payments by almost$23 milion and gave the Commission an economic gain (diference between the presentvalues ofthe debtservice payments on the old and new debtofnearly $5 milion. At October 31,2003,$51.29 m ilion ofthe 1992 refunding bonds are considered defeased.

30 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA Notesto the FinancialStatements (Continued) 14, NET ASSETS Net assets represent the difference betw een assets and liabilities. The com position of net assets were as fo low s: InvesL=d in CapitalAssets,NetofRelated Debt: Netproperty,plantand equipment(netofdepreciation) Les~ Currentportion of bonds payable Noncurrentpor lion ofrevenue bon ds payable InvesL-:<lin Ca pitalas sets,netofrelated Debt $ 84,169,366 (1,254,82o) (67,443,166) $ 15,471,380 Restricted forspecialrevenue,debtservice,capitalprojects and Risk M anagem ent: Resf~cL=d invesfm ents Res~icted receivables Liabilities from resbicted assets: Capitalprojects Accn~ed interest Restdcted for SpecialRevenue,DebtService,CapitalProjects and Ri sk M anagement: Restricted forfuture Acquisition of Equipm ent $39,589,243 2,043,084 (I7O4,648) (1,633,617) $38,294,062 $25, FEDERAL G RANTS The GreaterNew Orleans Expressway Commission received federalfunds (90% federal/10% state match)underthe United States DepartmentofTransportation (CFDA )passthrough grantfrom the Louisiana Departm entoftra nsportation and Developm entforhighway incidentm anagem ent. During the yearended O ctober31,2003,the Com m ission expended funds totaling $491,832 underthis program. The Greater New Orleans Expressway Commission also received federalfunds (66.66% federal/33.34% state and local match) directly from the United States Department of Transportation underthe FederalRailroad Adm inistration High Speed G round Transportation Program (CFDA )forthe Magnetic Levitation feasibility study. During the yearended October31,2003,funds totaling $115,556 were expended underthis progra m.

31 SUPPLEM ENTAL INFO RM ATIO N SCHEDULES The fo low ing schedules presentadditionalinform ation relating to the financialstatem ents. In addition,cash receipts and disbursem ents schedules by trustand otheraccounts are required by the G eneralbond Resolution dated Septem ber26,1986,and by the Series 1992, 1999A, 2003 bond resolutions dated Decem ber 4, 1992, June 16, 1999, and April 15, 2003, respectively.

32 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA SUPPLEM ENTAL INFO RM ATIO N SCHEDULES As of and forthe YearEnded O ctober31,2003 G ENERA L FUND ACCO UNTS Revenue Account A lrevenues co lected by the Com m ission are deposited to this account. Transfers are then m ade as required by the bond resolution. CollateralUndisbursed DebtService A ccount Funds are transferred to this accountwhenever the am ounton deposit in the Debt Service Accountis notatleastequalto the ac rued aggregate debtservice through the end ofthe next succeeding m onth. W hen funds are deposited to the debtserv ice ac ountbringing the balance equalto accrualaggregate debtservice through the end ofthe nextsucceeding m onth,then the funds in the Co lateralundisbursed DebtService Accountare returned to the accounts from which they were transferred. O peration and M aintenance A ccount M onies transferred to the O pera tion and M aintenance Accountare used to finance operations (generaland administrative). Extraordinary M aintenance and Repair Reserve A ccount The m onies in the Ext raordinary M aintenance and Repair Reserv e Accountm ay be used for major resurfacing, replacement, or reconstruction and extraordinary repairs, renewals,or replacem entofthe expressw ay. Excess Revenue Account This accountm aintains any surplus rem aining atthe end ofa fiscalyearpending distribution pursuantto Act875 ofthe 1988 Louisiana Legislature. Huey P.Long Bridge Account As provided by Act875 ofthe 1988 Louisiana Legislature,the Com m ission sha luse as m uch of its surplus as m ay be necessary forits ofi cers to police the Huey P.Long Bridge. AssetForfeiture A ccount This accountm aintains assets seized by the expressway police.

33 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIA NA SUPPLEMENTAL INFORMATION SCHEDULES (Contlnued) SPECIAL REVENUE ACCO UNTS VehicularLicense Tax A lm onies received from the State oflouisiana Highway Fund Num ber2 are deposited to the VehicularLicense Tax Account, The m oney received is dedicated and transferred to the Debt Service Account. M otoristassistantprogram Moines received from the Louisiana Departm entoftransportation and Developm entare used to provide m otorist incident m anagem enton Interstate 10. The program is anticipated to last through April30,2004. Emergency Evacuation Project M onies received from the FederalEm ergency Managem entagency are being used to study evacuation routes. DEBT SERVICE ACCO UNTS DebtService A ccount M onies are deposited to this accountfrom the VehicularLicense Tax SpecialRevenue Account to pay yearly debt service. Future sinking fund insta lm ents wilalso be deposited to this account. DebtService Reserve Account This account m aintains a balance equalto the Debt Service Reserv e Account requirem ent (maximum annualdebtservice requirements forthe curentorany future year). Money from this accountcan be used to supplem entany shortfa lin the DebtService Account, C ostof Issuance A ccount A portion ofthe initialbond proceeds ofthe 1999A and 2003 Series bond issue w as deposited to this accountforpaym entof legalfees and othercostassociated with the issuance ofthe bonds.

34 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA SUPPLEMENTAL INFORMATION SCHEDULES (Continued) CAPITAL PROJECTS ACCO UNTS Construction -Series 1986 The Construction Series 1986 Accountis used formajormaintenance and capitalimprovements to the expressw ay bddge from the proceeds ofthe 1986 capitalim provem entbond issue. Construction -Series 1999A The Construction Series 1999A Account is used for major maintenance and capital im provem ents to the expressway bridge from the proceeds ofthe 1999A capitalim provem ent bond issue. Construction -Series 2003 The ConstructionSeries 2003 Accountis used formajormaintenance and ca pitalimprovements to the expressway bridge from the proceeds ofthe 2003 ca pitalim provem entbond issue. Bridge Rehabilitation A specialfifty cents to lassessm entwas authodzed to fund im provem ents to the expressway bridge.this accountis used forca pitalim provem ents financed by the fifty ca nts toḷ Magnetic Levitation DeploymentProject The accountwas established to accountforcosts relating to the study ofthe FederalRailroad Adm inistration sponsored "M ag-lev"pm oram. NTERNAL SERVICE A CCO UNT Resources are accum ulated in this acco unt to finance risk m anagem ent deductible losses arising from claim s and litigation. 33

35 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE OF LOUISIANA Schedule of Cash Receipts and Disbursem ents Forthe YearEnded O ctober31,2003 GENERAL REVENUE COLLATERAL UND~ BURSED DEBT SERVICE OPERATIONS AND MAINTENANCE MAINTENANCE AND REPAIR RESERVE BALA NCES AT NOVEMBER 1,2002 $ 218,583 $ $ 979,119 $ RECEIF rs Tols Vehicularlicense tax Intergovem mentalgrants: Federal State Use ofm oney end property: Leases Investmentincome Bond proceeds Other Investmentsales and maturitk~s Transfers in Totalrece ipts 15,517,348 13,786 42,977 32,895,595 7,079, ,093,032 36,185,028 DISBURSEM ENTS personalservice s Contractualservices Operating services Supplies and maintenance Professionalservices Administrative Capita loutlay Debtservices: Principalretirement Infe rest CostofIssuance Intergovernmenta lexpenditures -parishes Insura nce setlements Investmentpurchases Transfers out Tota ldisbursements 144,723 17,973,870 19,734,403 37,852,996 9,924,793 2,588,783 12,511,576 3,528,248 72,952 1,790, , , , ,562 55, , ,279 35,154,296 42,977 7,113,337 36,1 BALANCES AT OCTOBER 31,2003 $ 233,942 $ $ 958,814 $ (Continued)

36 Schedule 1 ACCOUNTS SPECIAL REVENUE ACCOUNTS EXCESS REVENUE HUEY P LONG BRIDGE ASSETS FORFEITURE VEHICULAR LICENSE TAX MOTORIST ASSIST PROGRAM EMERGENCY EVACUATION PROJECT $ 700,000 $ 81,682 $ 28,321 $ - $ - $ 14,455 4,751, ,968 52,665 21,991 6,909 4,987 2,035 10,609,049 7,106, , ,043 2,599,550 17,737,623 1,717,449 2,035 7,355, , ,322 1,135 31, , ,867 43,368 46, ,346,554 9,041, ,736 6,969 1,741,206 4,756,116 2,599,550 7,355,666 $ 700,OO0 $ 57,925 $ 30,356 $ $ - $

37 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA Schedule of Cash Receipts and Disbursem ents Forthe YearEnded O ctober31,2003 DEBT SERVICE DEBT SERVICE RESERVE COST OF ISSUANCE ESCROW 2003 BALANCES AT NOVEMBER RECEIPTS Tols Vehicularlicense tax Intergovem mentalgrants: Federa l State Use ofmoney and property: Leases Investm entincome Bond proceeds Other Investmentsales and maturities Transfers in Totalreceipts - $ $ $ 7, , ,180,307 11,241,691 4,048,595 69,478,309 38,035, , , ,222 53,716,784 53,715, ,433,568 DISBURSEM ENTS Pers onalservice Contractualservices Operating service s Supplies and m aintenance Pro fessionalserv ice s Administrative Capita loutlay Debtservices: Pdco ipalretirement Intere st CostofIssuance Ints rgovem mentalexpenditure s -parishes Insura nce settlements Investm entpurchases Transfers out Totaldisbursements 54,260,000 4,686,410 8,380,575 2,151,324 69,478,309 31,203,675 7,143, , , , ,716,784 53,716, ,433,568 BALANCES AT OCTOBER 31,2003 $ $ $ (Concluded)

38 Schedule I CAPITAL PROJECTS ACCOUNTS CONSTRUCTION SERIES A MAGNETIC BRIDGE LEVITATIO N INTERNAL REHABILITATION PROJECT SERVICE $ $ - $ $ $ 476,996 $ 15,517, ,691 52,885 24, ,951 33, ,275 18,832,385 18,856, ,322 26,775, ,805,083 17,304 33,614,272 81,854,742 6,211,397 68,333, ,464 4,620,891 4,635, , ,746 54,160,307 74, ,020,071 97,023, ,353, ,981 8,322 55,251 5,678, , ,585,437 74,087 1,865, ,425 1,647,699 1,334,765 6,248,889 18,029, ,982 33,559,021 82,555,168 99,375 18,856, ,304 33,614,272 88,333, ,876 4,635,355 4,635,355 54,260,000 4,686, , , , ,443,303 97,122, ,702,205 $ - $ $ $ 154,843 - $ 2,150,335 37

39 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIA NA SUPPLEM ENTAL INFO RM ATIO N SCHEDULE For the YearEnded O ctober31,2003 CO M PENSATIO N PAID BOA RD M EM BERS The schedule ofcom pensation paid board m em bers was prepared in com pliance with House ConcurrentResolution No.54 ofthe 1979 Session ofthe Louisiana Legislature. Members ofthe Commission are entitled to compensation of$570 permonth as authorized by an am endm entto the Articles of Incorporation dated August7,1986,and are included in the genera ladm inistrative expenditures ofthe G enera lfund.

40 Schedule 2 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA Schedule of Com pensation Paid Board M em bers Forthe YearEnded O ctober31,2003 W iliam PeterConnick John L.Donahue,Jr. Barney D.M clain J.Barton Pepperm an Ben SlaterItl Joy H.Zainey 6,836 6,836 6,836 3,703 3, $ 34,180

41 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA SUPPLEM ENTA L INFO RM ATIO N SCHEDULE Forthe Year Ended O ctober31,2003 STATISTICAL INFO RM ATIO N The G eneralbond Resolution dated Septem ber 25, 1986,requires the folow ing additiona schedules: Schedule of Investm ents Schedule ofrevenue From To ls Schedule oftrafic - NumberofCrossings(Unaudited) Schedule ofinsurance (Unaudited)

42 Schedule 3 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA Schedule of Investm ents As ofo ctober31,2003 FAIR VALUE CARRYING VALUE PAR VALUE GENERAL: Extraordinary Maintenance and RepairReserve Account: FederalNationalMortgage Association DiscountNote: Due November5,2003 Due January 7,2004 FederalHom e Loan M ortgage Corporation DiscountNote: Due December4,2003 Money Market-One Croup -United States Treasury Seeudtles Money MarketFund Class I Excess Revenue Account-Money Market-One Gro up United States Treasury Securities -Money MarketFund Class Huey P.Long Bridge Account-Money Market-One Cro up United States Treasury Securities -M oney MarketFund Class , ,230 1,997,549 1,649,893 1,330, ,925 2,031, ,230 1,997,549 1,649, ,000 2,035, ,000 1,997,549 1,649,893 1,330,904 DEBT SERVICE; DebtService Fund Account: Money Market-One Gro up -United Sta tes Treasury Secudties Money MarketFund Class I DebtServ ice Reserve Account: FederalHome Loan Mortgage Corp ora tion DiscountNote: Due March 10,2004 Ambac As sura nce Corp ora tion Surety Bond Policy NO.SB1602BE Money Market-One Croup -United States Treasury Secudties Money MarketFund Class I 2003 Account: CostofIssuance Fund: Money Market-One Gro up -United States Treasury Securities Money MarketFund Class I 2,031,973 2,031,973 2,031,973 1,290,079 1,290, ,295, , ,502 CAPITAL PROJECTS: Construction Series: 1986 Account: Conskuction Fund: Federa lhome Loan Bank Construction Disco untnote: Due November5,2003 Money Market-One Group -United States Treasury Securities Money Mark etfund Class I 1992 Account; Money Market-Or~ Croup -United Steres Tre asury Securities Money MarketFund Class I 1999A Account: Money Market-One Gro up -United States Treasury Securities Money MarketFund Clas I Bddge Rehabilite Uon Account: FederalNationalMortgage As sociation DiscountNote: Due November5,2003 (Continued) 41 1,150, ,885 1,151,000 1,652 1,652 $ 1,143,099 1,143, , , ,000

43 Schedule 3 G REATER NEW O RLEANS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA Schedule of Investm ents As ofo ctober31,2003 CAPITAL PROJECTS:(CONT.) Bridge RehabilitationAccount:(cent.) FederalNationalMortgage Association DiscountNote: Due January 7,2004 Due February 6,2004 Due Apdt1,2004 FederalHome Loan Mortgage Corporation DiscountNote: Due December4,2003 Due March 10,2004 Due May 20,2004 Due July 8,2004 Due July 15,2004 Due August12,2004 Due October7,2004 FederalFarm Cre ditbank DiscountNote: Due March 1,2004 Due June 1,2004 Money Market-One Group -United States Treasury Securities Money MarketFund Class I 2003 Account: Revenue Bonds: FederalHome Loan Mortgage Corp ora tion DiscountNote: Due Novem be r6,2003 Due Dece m ber1,2003 Due January 9,2004 Due Febru ary 5,2004 Due April1,2004 Money Market-One Group -United States Treasury Securities Money MarketFund Class I SPECIAL REVENUE: VehicularLicense Tax Fund: Money MarketoOne Gro up -United States Treasury Securities Money MarketFund Class I FAIR VALUE 2,364,499 1,007,172 1,333, ,413 1,305,022 2,507,357 1,500,593 1,153,231 1,153,933 1,816,564 2,262,282 2,306, ,720,828 1,704,636 1,001,094 1,711, CARRYING VALUE 2,364,499 1,007,172 1,333, ,413 1,305,022 2,507,357 1,500,593 1,153,231 1,153,933 1,816,564 2,262,282 2,306, ,720,828 1,704,636 1,001,094 1,711,195 1,803,665 PAR VALUE 2,369,000 1,010,000 1,340, ,000 1,310,000 2,523,000 1,513,000 1,163,000 1,165,000 1,839,000 2,270,000 2,322, ,721,600 1,706,000 1,003,000 1,716,000 1,812,000 1,615 1, ,322,026 3,322,026 3,322,026 INTERNAL SERVICE FUND: Selfinsurance Account: FederalHome LoanMortgage Corp ora tion DiscountNote: Due Novem ber14,2003 Due Decem ber4,2003 Due February 5,2004 Money Market-One Group -United States Treasury Secudties Money MarketFund Class I 360, , , , , , , , , Total $ 46,866,973 $ 46,866~973 $ 47,007,664 (Concluded) 42

44 Schedule 4 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIANA Schedule of Revenue From Toils Forthe YearEnded O ctober31,2003 NO RTH SHO RE 2002: Novem ber Decem ber 2003: January February M arch April M ay June July August Septem ber O ctober Subtotal Discounted to ltag forfeitures Total 1,226,788 1,294,208 1,233,033 1,137,177 1,265,753 1,287,483 1,337,712 1,236,144 1,282,021 1,286,204 1,275,140 1, $ 15,232, $ 15,448,211 NO TE: O n M ay 5,1999,the com m ission began co lecting to ls on the North Shore only

45 UNA UDITED G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE O F LO UISIA NA Schedule of North Shore Trafic -Num berof Crossings Forthe YearEnded O ctober31, : Novem ber Decem ber 2003: January February March April May June July August Septem ber October AXLES UNDER 7'5"HEIGHT AXLES OVER 7'5"HEIGHT OR MORE OR MORE 214,601 1, , , , , , , , , , , , ,155 1,377 1,179 1,367 1,349 1,270 1, O ,314 3,244 3,346 3,070 3,353 3,574 3,738 3,475 3,720 3,493 3,411 3, Total 2,571,799 13,734 6,427 41,394 5,864 6,

46 NON-REVENUE VEHICLES 9,900 19, ,669 10,404 10,630 10,562 19,134 10,588 9,763 7,052 3, AUTOMATIC VEHICLE identification NON-REVENUE (BRIDGE VEHICLES) 2,217 2,366 2,378 2,171 2,266 2,001 2,144 2,020 2, ,973 1, AUTOMATIC VEHICLE IDENTIFICATION DISCOUNT TOLL VEHICLES 209, , , , , , , , , , , ,207 2,700,761 AUTOMATIC VEHICLE IDENTIFICATION RECREATIONAL VEHICLES Schedule 5 AUTOMATIC VEHICLE DENTIFICATION FULL TOLL TOTAL VEHICLES VEHICLES 22,991 24,316 23,295 21,314 23,609 24,086 25,290 22,637 23,478 23,792 23,856 24, , , , , , , , , , , , , ,521 5,782,119

47 UNAUDITED Schedule 6 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N STATE OF LO UISIANA Schedule ofinsurance Forthe YearEnded October 31,2003 COVERAGE UNDERWRITER NUMBER POLICY PERIOD LIMITS BRIDGE PROPERTY DAMAGE St.PaulInsurance Co, IM /1/02-11/1/03 $ 90,000,000 including: Bridge structure Spare structuralcomponents Electronic data processing equipm ent Vadable message signs Hazard incidentlights Calboxes and controlconsoles EDP (Related to VMS/HIL/CB) EDP media Business income EDP extra expense Building and contents Scheduled property and equipment Vadous Deductibles BRIDGE USE AND OCCUPANCY St.PaulInsurance Co. IM /1/02-11/1/03 $13,800,000 7 Day Deductible EMPLOYEE DISHONESTY BOND with $5,000 deductible Travelers $ 300,000 BlanketLimit $200,000 Forger/and Alterations $ 50,000 Money In/Out RETAINED LIMITS LIABILITY Amedcan Altemative Ins.Co. 01A2FR Ol 11/1/02-11/1/03 Comprehensive generalliability AmedcanAlternative Ins.Co, 01A2FR /1/02-11/1/03 $ 9, 850,000 retention applicable to each loss is Per Occurrence $200,000 and Aggregate Law enforcementliability rete ntion applicable to each toss is $200,000 Amedcan Alternative Ins.Co. 1111/02-11/1/03 $ g,850,000 PeTOccurrence and Aggregate Excessautomobile liability retention applicable to each loss is $200,000 Amedcan Alternative Ins.Co. $ 9,800,000 Each Accident and Aggregate Publicoficialsliability retention applicable to each loss is $200,000 11/1/02-11/1/03 $ 9,990,000 PerOccurrence and Aggre gate (Continued)

48 Schedule 6 G REATER NEW ORLEANS EXPRESSW AY COM M ISSIO N STATE OF LO UISIA NA Schedule of Insurance,2003 UNDERW RITER NUMBER POLICY PERIOD LIMITS STAND ALONE EXCESS UABILITY Lexington W ORKER'S COMPENSATION Employers'liability LW CC D 1111/02-11/1103 Statutory $ 1,000,000 Each Accident Dlce ase Limit Disease Each Person EXPRESS MARITIME EMPLOYERS UAI~LITY $5,000 deductible perclaim PXMC /2/02-3/2/03 $ 1,000,000 Any Person Any 1Accident AUTOMOBILE POUCY (MAP) Comprehensive -$500 deductible applicable to each accident Colision -$1.000 deductible applicable to each accident BOILER AND MACHINERY $5,000 deductible perclaim 1t11/02-1t11/03 $ 1,000,000 Each Accident Excludnd Uninsured Mo~ dst FBP / /14103 $ 20,000,000 POUCE OFFICERS FAITHFUL PERFORMANCE BOND C.N.A.Surety 5/12/2000 UntilCanceled $ 10,000 PerOfice r POLLUTION LEGAL LIABILITY Amedcan InternationalSpec. PLS /18/00-12/18/05 $100,000 deductible applicable to each incident $ 5,000,000 Each incident and Aggregate CONTRACTORS POLLUTION LIABILITY $100,000 deductible applicable to each claim CPL /15/00-12/15/05 $ 5,000,000 Each Claim and Aggregate (Concluded) 47

49 OTHER REPORTS REQ UIRED BY G O VERNM EN T A UDITIN G STANDARDS The fo low ing pages contain a reporton com pliance with laws and regulations and on intern al co ntrolre quire d by Governm entauditing Standards,issued by the Com ptro lergeneralofthe United States,as welas a report on co mpliance and internalcontrolapplicable to major program s in accordance w ith O M B CircularA-133. These reports are based solely on the audit ofthe financialstatem ents and includes,where appropriate,any reportable conditions and/or m aterialweaknesses as we las any findings orquestioned co sts thatwould be m aterialto the presented financialstatem ents.

50 T.A.H arris Inc.CertifiedPublicAccountant A ProfessionalAccounting Corporation REPO RT O N CO M PLIANCE AND O N INTERNAL CO NTRO L OVER FINA NCIA L REPO RTING BASED O N A N AUDIT O F FINANCIAL STATEM ENTS PERFO RM ED IN ACCO RDA NCE W ITH G O VERNM EN T A UDITING STA NDARDS G reaternew O rleans Expressway Com m ission State oflouisiana M etairie.louisiana W e have audited the basic financialstatements ofthe GreaterNew Orleans Expressway Commission (the Commission)as ofand forthe yearended October31,2003,and have issued ourreportthereon dated M arch 29,2004.W e conducted ourauditin accordance w ith genera ly accepted auditing standards in the United States ofam erica and the standards applicable to financialaudits contained in Governm entauditing Standards,issued by the Com ptro lergeneralofthe United States. Com pliance As partofobtaining reasonable assurance aboutw hetherthe Com m ission's basic financialstatem ents are free of m aterialm isstatem ent,w e perform ed tests of its com pliance w ith certain provisions of laws, regulations,contracts and grants,noncom pliance with which could have a directand m aterialeffecton the determ ination offinancialstatem entam ounts. However,providing an opinion on com pliance w ith those provisions was notan objective ofourauditand,accordingly,we do notexpress such an opinion. The results of our tests disclosed no instances of noncom pliance that are required to be reported under Governm entauditing Standards.However,w e did note a certain im m aterialinstance ofnoncom pliance that we have reported to m anagem entofthe Com m ission in a separate letterdated M ay 5,2004. InternalControlO ver FinancialReporting In planning and perform ing our audit,w e considered the Com m ission's internalcontroloverfinancial reporting in orderto determ ine ourauditing procedures forthe purpose ofexpressing ouropinion on the financialstatem ents and notto provide assurance on the internalcontroloverfinancialreporting,o ur consideration ofthe internalcontroloverfinancialreporting would notnecessarily disclose allm atters in the internalcontroloverfinancialreporting thatm ightbe m aterialweaknesses. A m aterialweakness is a condition in which the design oroperation ofone orm ore ofthe internalcontrolcom ponents does notreduce to a relatively low levelthe risk thatm isstatem ents in am ounts thatwould be m aterialin relation to the financialstatem ents being audited m ay occurand notbe detected w ithin a tim ely period by em ployees in the norm alcourse ofperform ing theirassigned functions.w e noted no m a ters involving the internalcontrol overfinancialreporting and its operation thatw e considerto be m aterialw eaknesses. This report is intended solely forthe inform ation and use ofthe Com m ission,the Com m ission's m anagem ent and federalawarding agencies and pass-through entities,such as the State oflouisiana and Legislative Auditor's Office and is notintended to be and should notbe used by anyone otherthan these specified parties. However,underLouisiana Revised Statute 24:513,this reportis distributed by the Legislative Auditoras a public docum ent. M arch 29,2004 Baton Rouge,Louisiana,~-"" Justice Avenue, Suite A ~ Baton Rouge,Louisiana Voice (225) ~Fax (225) ~ taharrisinc@ belsouth,net

51 T.A.H arris Inc.CertifiedPublicAccountant A ProfessionalAccounting Corporation REPORT ON COMPLIANCE W ITH REQUIREMENTS APPLICABLE TO EACH MAJO R PRO G RA M A ND INTERNA L CO NTRO L OVER CO M PLIA NCE IN ACCORDANCE W ITH O M B CIRCULA R A-133 G reaternew O rleans Expressway Com m ission State oflouisiana M etairie,louisiana Com pliance W e have audited the compliance ofthe GreaterNew Odeans Expressway Commission (the Commission) with the typesofcompliance requirements described in the U.S.Ofice ofmanagementand Budget(OMB} CircularA-133 Compliance Supplementthatare applicable to eachofitsmajorfederelprogramsforthe year ended October31,2003. The Commission's majorfederalprograms are identified in the summary of auditors'results section ofthe accom panying schedule offindings and questioned costs.com pliance w ith the requirementsoflaws,regulations,contracts and grants applicable to each ofitsmajorfederalprograms are the responsibility ofthe Com m ission's m anagem ent.o urresponsibility is to express an opinion on the Com m ission's com pliance based on ouraudit. W e conducted ourauditofcom pliance in accordance with auditing standards genera ly accepted in the United States ofam erica;the standards applicable to financialaudits contained in Governm entauditing Standards,issued by the Com ptro lergeneralofthe United States;and O M B C irculara-133,audits of States,Loca/Govern m ents,and Non-Prof'rtOrganizations.Those standards and O M B C irculara-133 require thatwe plan and perform the auditto obtain re asonable assurance aboutwhethernoncom pliance w ith the typesofcompliance requirementsreferred to above thatcould have a directand materialefecton a major federalprogram occurred.an auditincludes exam ining,on a testbasis,evidence aboutthe Com m ission's com pliance w ith those require m ents and perform ing such otherprocedure s as we considere d necessary in the circum stances.w e believe thatourauditprovides a reasonable basis forouropinion.ourauditdoes notprovide a legaldeterm ination on the Com m ission's com pliance with those requirem ents. In ouropinion,the Com m ission com plied,in a lm aterialre spects,w ith the requirem ents referred to above thatare applicable to each ofits majorfederalprograms forthe yearended October31,2003. InternalControlO ver Com pliance The m anagem entofthe Com m ission is re sponsible forestablishing and m aintaining efective intern alcontrol overcom pliance w ith requirem ents oflaws,re gulations,contractand grants applicable to federalprogra m s. In planning and perform ing ouraudit,we considere d the Com m ission's internalcontrolovercom pliance w ith requirements thatcould have a directand materialefecton a majorfederalprogram in orderto determ ine ourauditing procedures forthe purpose ofexpressing ouropinion on com pliance and to testand re porton internalcontrolovercom pliance in accordance w ith O M B CircularA Justice Avenue ~ Suite A ~ Baton Rouge,Louisiana Voice (225) ~Fax (225) ~ taharrisinc@ belsouth.net

52 Schedule of Expenditures of FederalA wards W e have audited the basic financialstatem ents ofthe Com m ission as ofand forthe yearended October 31,2003,and have issued ourreportthereon dated March 29,2004. Ourauditwas perform ed forthe purpose ofform ing an opinion on the basic financialstatem ents taken as a w hole. The accom panying schedule ofexpenditure s offederalawards is presented forpurposes ofadditionalanalysis as required by OM B CircularA-133 and is notrequired part ofthe basic financialstatem ents.such inform ation has been subjected to the auditing procedures applied in the auditofthe basic financialstatementsand,in ouropinion, is fairly stated,in a lm aterialrespects,in re lation to the basic financialstatem ents taken as a whole. This reportis intended solely forthe inform ation and use ofthe Com m ission,the Com m ission's m anagem ent and federalawarding agencies and pass-through entities,such as the State oflouisiana and Legislative Auditor's Ofice and is notintended to be and should notbe used by anyone otherthan these specified parties. However,underLouisiana Revised Statute 24:513,this reportis distributed by the Legislative Auditoras a public docum ent. M arc h 29,2004 Baton Rouge,Louisiana

53 GREATER NEW ORLEANS EXPRESSW AY COMM ISSION SUPPLEMENTARY SCHEDULE OF EX PENDITURES OF FEDERAL AW AR DS FOR THE YEAR ENDED OCTOBER 31,2003 FederalGrantor/Pass-Through Agency~Program Identification CFDA Num ber Fed.Share of Program Expenditures Total Program Expenditures U.S.DEPAR TMENT OF TRANSPORTATION Passed through Louisiana Departm ent oftransportation and Developm ent: Highway Research,Planning and Construction IncidentManagem ent: State ProjectNo , ,832 Received Directty from USDOTD: FederalRailroad Administration High Speed Ground Transportation M agnetic Levita tion: State ProjectNo , ,555 Subtota lu.s.departm entoftransportation 519, ,387 $519,678 $607,387

54 G REATER NEW O RLEA NS EXPRESSW AY COM M ISSIO N NOTES TO THE SCHEDULE O F EX PENDITURES O F FEDERA L AW A RDS FO R THE YEAR ENDED O CTO BER 31,2003 NOTE 1 -G ENERA L The accom panying Schedule ofexpenditures offederalawards pre sents the activity ofa lfedera lawards programsofthe GreaterNew Orleans Expressway Commission (the Commission).The Commission's reporting entity is defined in note la ofthe Commission's basic financialstatements.a lfederalawards received directly from federalagencies,as we las federalaw ards passed through othergovernm ent agencies are included on the schedule. NOTE 2 -BASIS O F ACCO UNTING The accom panying Schedule ofexpenditures offederalawards is presented using the accrualbasis of accounting which is described in note 1ofthe Com m ission's basic financialstatem ents. NOTE 3 -RELATIO NSHIP TO BASIC FINANCIAL STATEM ENTS Federalaward revenues are reported in the Com m ission's basic financialstatem ents as fo lows Nonoperating Revenues FederalG rants $ 519,678 NOTE 4 -RELATIO NSHIP TO FEDERA L FINANCIA L REPO RTS Am ounts reported in the accom panying schedule agree w ith the am ounts in the related federa lfinancial reports exceptforchanges m ade to reflectam ounts in accordance w ith genera ly accepted accounting principles. NOTE 5 -MAJO R FEDERA L AW ARDS The dolarthreshold of$300,000 was used to distinguish between Type A and Type B federalprograms. Forthose funds thathave m atching revenues and state funding,federa lexpenditures were determ ined by deducting m atching revenues from totalexpenditures.

55 G REATER NEW O RLEA NS EXPRESSW AY CO M M ISSIO N SCHEDULE O F FINDINGS AND Q UESTIONED FOR THE YEA R ENDED O CTO BER 31,2003 (a) The type ofreportissued on the financialstatements unqualified opinion (b) Reportable conditions on internalcontrolwere disclosed by the audit ofthe FinancialStatem ents:n _.. ~o M aterialw eaknesses:n _ o (c) Noncompliance whichis materialto the financialstatements: no (d) Reportable conditions on internalcontrolovermajorprograms: n._o M aterialw eaknesses:no (e) The type ofreport issued oncompliance formajorprograms (f) Any auditfindings which are required to be reported undersection.510 (a)ofomb CircularA-133:n._o (g) MajorPrograms: DOTD IncidentManagementStudy (CFDA Number20.205) (h) Dolarthreshold used to distinguish between Type A and Type B programs:$300,000 (i)auditee qualified asa low-risk auditee undersection.530 ofomb CircularA-133:no (2) Findings Relating to FinancialStatem ents Reported in Accordance with GovernmentAuditing Standards: (3) Findings and Questioned Costs Relating to FederalAwards: None

56 G REATER NEW ORLEANS EXPRESSW AY CO M M ISSIO N SCHEDULE O F PRIO R YEA R FINDINGS FO R THE YEAR ENDED O CTO BER 31,2003 FINDING 02-A Resolved (Finding) Resolved (ManagementLeter)

57 D ivision of A dm inistration R eporting Package

58 Schedule Num ber STATE O F LO UISIANA AnnualFinancialStatem ents FiscalYearEnding ~ Oc,.~ b&qr"31,2 oo,.% Greater N ew Or leans Expressw ay Comm ission (Agency Name) Division ofadm inistration Ofi ce ofstatewide Reporting and Accounting Policy P.O.Box Baton Rouge,Louisiana Legislative A uditor P.O.Box Baton Rouge,Louisiana Persona ly cam e and appeared before the undersigned authority Greater N ew Orleans (Title)of ExDresswav Commission Cheryl H. Lambert (Name) Superv isor o f Finance (Agency)who duly sworn,deposes and says,thatthe financial statem ents herew ith 0 ~.'I" $ I,2.oo3 (agency)atj/.m~,_ and the given present fairly the financial position of results ofoperations forthe yearthen ended in accordance w ith policies and practices established by the Division ofadm inistration orin accordance with G enera ly Accepted Accounting Principles as prescribed by the Governm entalaccounting Standards Board / /i, / " + t+ s /~" / I Preparedby: l#~l~ t'jl L.&,~,~:I~'~" Title: ~'~l,m.~t-v,'f,lm~"91( ~'a~.~. / r Telephone No.: Date: N-2.1~"~ W

59 G REATER NEW O RLEANS EXPRESW AY CO M M ISSIO N (Agency Name) STATE O F LO UISIANA AnnualFinancialStatem ents O ctober TRANSM ITTAL LET TER AFFIDAVIT Statem ents M D&A Statem entofnetassets Statem entofrevenues,expenses,and Changes in Fund NetAssets Statem entofactivities Statem entofcash Flows Notes to the FinancialStatem ents A. Sum m ary ofsignificantaccounting Policies B. Budgetary Accounting C. Deposits w ith FinancialInstitutions and Investm ents D. CapitalAssets E. Inventories F G H Restricted Assets Leave Retirem entsystem PostRetirem enthealth Care and Life Insurance Benefits Leases Long-Term Liabilities Litigation Related Party Transactions Accounting Changes In-Kind Contributions Defeased Issues Cooperative Endeavors Government-Mandated Nonexchange Transactions (Grants) Violations offinance-related LegalorContractualProvisions Short-Term Debt Disaggregation ofreceivable Balances Disaggregation ofpayable Balances SubsequentEvents Segm entinform ation Due to/due from and Transfers Liabilities Payable from Restricted Assets Prior-YearRestatem entofnetassets A B C D Schedules 1 Schedule ofperdiem Paid Board M em bers 2 Schedule ofstate Funding 3 Schedules oflong-term Debt 4 Schedules oflong-term DebtAm ortization

60 STATE O F LO UISIANA GREATER NEW ORLEANS EXPRESSW AY COMMISSION (BTA) M ANAG EM ENT'S DISCUSSIO N AND ANALYSIS AS O F O CTO BER 31,2003 The M anagem ent's Discussion and Analysis ofthe presents a narrative overview and analysis of G NO EC G NO EC s (BTA)financialperformance 's (BTA)financialactivities for the yearended O ctober 31,2003. This docum entfocuses on the currentyear's activities,resulting changes,and currently know n facts in com parison w ith the prioryear's inform ation. Please read this documentin conjunction with the additionalinformation contained in the transmittalletterpresented on pages 3 7 and the GNOEC 's (BTA)financialstatements,which begin on page Statem enta. FINA NC IA L H IG H LIG HTS The GNOEC 's(bta)assets exceeded its liabilities atthe close offiscalyear 2003 by 61.6 m ilion w hich represents a _ 9% increase from lastfiscalyear. The net assets increased by $ _ 5.2 milion (or9% ). The GNOEC s (BTA) tolrevenue increased $ 768,239 (or 5% ). The _ accrued am ount from Highway Fund or19%. # 2 which is dedicated to debt service increased by OVERVIEW O F THE FINA NCIA L STATEM ENTS The fo low ing graphic ilustrates the m inim um requirem ents for Special Purpose G overnm ents Engaged in Business-Type Activities established by Governm ental Accounting Standards Board Statem ent34,basic FinancialStatem ents- and M anaaem ent's Discussion and Analysis- for State and LocalG overnm ents These financialstatements consistofthree sections -Management's Discussion and Analysis (this section),the basic financialstatements (including the notes to the financialstatements), and required supplem entary inform ation.

61 STATE O F LO UISIA NA GREATER NEW ORLEANS EXPRESSW AY COMMISSION (BTA) M A NAG EM ENT'S DISC USSIO N AN D A NA LYSIS AS O F O CTO BER 31,2003 Basic FinancialStatem ents The basic financialstatements presentinformation forthe GNOEC (BTA)as a whole,in a form atdesigned to m ake the statem ents easierforthe readerto understand. The statem ents in this section include the Balance sheet;the Statem entofrevenues,expenses,and C hanges in Fund Net Assets:and the Statem entofcash Flow s. The StatementofNetAssets (StmtA)presents the currentand long term portions ofassets and liabilities separately. The diference betw een totalassets and totalliabilities is netassets and m ay provide a usefulindicatorofwhetherthe financialposition ofthe GNOEC (BTA)is im proving ordeteriorating. The Statem ent of Revenues Expenses. and Chanaes in Fund Net Assets (Stmt B) presents information showing how GNOEC 's (BTA)assets changed as a result of current year operations. Regardless ofwhen cash is afected,a lchanges in netassets are reported w hen the underlying transactions occur. As a result,there are transactions included thatw illnotafectcash until future fiscalperiods. The Cash Flow Statement(StmtD) presents information showing how GNOEC 's (BTA) cash changed as a resultofcurrentyearoperations. The cash flow statem entis prepared using the direct method and includes the reconciliation of operating income(loss) to netcash provided(used by operating activities (indirectmethod)as required by GASB 34. FINA NC IA L A NA LYSIS O F THE ENTITY

62 STATE O F LO UISIA NA GREATER NEW ORLEANS EXPRESSW AY COMMISSION (BTA) M ANAG EM ENT'S DISC USSIO N AND ANA LYSIS AS O F O CTO BER 31,2003 Restricted net assets represent those assets that are not available for spending as a result of legislative requirem ents,donoragreem ents,grantrequirem ents.conversely,unrestricted netassets are those thatdo nothave any lim itations on w hatthese am ounts m ay be used for. Netassetsof GNOEC 's (BTA)increased by $ _ 5.2 m ilion _, o r _ 9%,from O ctober31,2002 to October31,~ 003.One ofthe majorcausesofthisincreaseisthe inclusionofuserfees,etcetera were greater than the costs of the operations. In addition,capitalim provem ents are not charges against current revenues bit are capitalized w ithin the property,plant and equipm ent account and depreciated overfuture periods. The GNOEC 's (BTA)totalrevenues increased by $ _ 178,838 or(_.79% ).The totalcost ofalprograms and services,excluding depreciation increased by $ 138,166 or1%. CA PITA L A SSET A N D D EBT A D M IN ISTRATIO N CapitalAssets Atthe end of2003,the GNOEC (BTA)had $ _ 84.2 m ilion invested in a broad range of capitalassets,including Buildings and im provem ents,furniture,fixtures,equipm ent,and infrastructure assets.(see Table below). Thisamountrepresents a netincrease (including additionsand deductions)of$ 4.6 milion_,or 6 %,overlastyear.