FINANCIAL STATEM ENTS AND ACCO UNTANT'S REPO RT NSHO RE FISHING ASSO CIATIO N,INC DECEM BER 31,2003

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1 '-) FINANCIAL STATEM ENTS AND ACCO UNTANT'S REPO RT NSHO RE FISHING ASSO CIATIO N,INC DECEM BER 31,2003 Underprovisions ofstpte law,this reportis a public documenta copy ofthe reporthas been submited to the entity and otherappropriate public oficials.the reportis available forpublic inspection atthe Baton Rouge ofice ofthe Legislative Auditorand,w here appropnate,atthe ofice ofthe pariah clerk ofcourt. ReleaseDate E}'I'0~'/~

2 NSHO RE FISHING ASSOCIATIO N,INC TA BLE O F CO NTENTS PAG E ACCO UNTANT'S REPO RT 3 FINANC IAL STATEM ENTS BALANCE SHEET STATEM ENT O F O PERATIO NS STATEM ENT O F RETAINED EARNING S STATEM ENT O F CASH FLO W S NOTES TO FINANCIAL STATEM ENTS

3 PAILET,rneunl~~ andleblnic,llp Certified PubticAccountants ma.oq+m+nlconsultants To the Board ofdirectors INSHO RE FISHING ASSO C IATIO N,INC Longwood,Florida W e have com piled the accom panying balance sheetofinsho RE FISHING ASSOCIATION,INC.(an S corporation),as ofdecember31,2003 and the related statements ofoperations,retained earnings and cash flows forthe yearthen ended in accordance with Statem ents on Standards foraccounting and Review Services issued by the Am erican Institute ofcertified Public Accountants. A com pilation is lim ited to presenting in the form offinancialstatem ents and supplem entary schedules inform ation thatis the representation ofm anagem ent.w e have not audited orreviewed the accom panying financialstatem ents and supplem entary schedules and accordingly,do notexpress an opinion orany otherform ofassurance on them. As disclosed in Note B to the financialstatem ents,the Com pany's financialstatem ents do notdisclose the am ountofaccounts payable atdecem ber31,2003. Disclosure ofthis inform ation is required by genera ly accepted accounting principles.the efects ofthis departure from genera ly accepted accounting principles on financialposition,results of operations,and ca sh flows have notbeen determ ined. As disclosed in Note B to the financialstatem ents,generaly accepted accounting principles require thatfixed assets be depre ciated overtheirestim ated usefullives.the Com pany has com puted depreciation on severalfixed assets in accordance with the M odified Accelera ted CostRecovery System required forfederalincom e tax purposes,w hich does not a locate depreciation to expense overthe estim ated usefullives of the assets. The efects of this departure from genera ly accepted accounting principles on financialposition,results of opera tions,and cash flows have notbeen determ ined. M etairie,louisiana July 7, N.Cau1~w/ay Blvd.,Suite 701~Metairie,LA % 201St.ChadesAve.,Sub 2559 ~New Odeans,LA Telephone (504) ~Fax (504)837-71(~ ~ Te~.phone (504)522~504.Fax(504) Member~ ~ letern~tlon=lgmupofaccoun~ngrnrm ~ Mem berrrm8 inprincip~dcitlu NCPA SEC Practk~ Sec~on ~ AICPA Prlvlte ComDImlel Pr'actlceSec~on

4 INSHO RE FISHING A SSO C IA TIO N,INC BA LA NCE SHEET Decem ber31,2003 ASSETS CurrentAssets Cash and Cash Equivalents inventory Accounts Receivable TotalCurrentAssets 38,293 5,400 37, Property and Equipm ent A utom obiles Equipm entand Furniture Less:Accum ulated Depreciation TotalProperty and Equipm ent 19,395 51,360 (46,260) OtherAssets Security Deposits TotalO therassets To~ lass~ s See accountant's report and notes to financialstatem ents 4

5 INSHO RE FISHING ASSO CIATIO N,INC, BA LA NC E SHEET Decem ber31,2003 LIABILITIES AND STO CKHO LDERS'EQ UITY C urrentliabilities Prepaid Tournam entfees TotalCurrentLiabilities $ Long-term Liabilities Loans From Shareholders TotalLong-term Liabilities TotalLiabilities Stockholders'Equity CapitalStock Accum ulated Deficit TotalStockholders'Equity TotalLiabilities and Stockholders'Equity See accountant's reportand notes to financialstatem ents 5

6 INSHO RE FISHING A SSO C IATIO N,INC STA TEM ENT O F O PERA TIO NS For the year ended Decem ber 31,2003 Revenue Sale ofm erchandise M em berdues Sponsorships G rants -State oflouisiana TourIncom e Television Production In-kind nterest TotalRevenue 25,533 21, , , ,218 45, ,878 CostofRevenue Tournam entprizes O utside Services Shirts and Trophies Security M easuring Boards TotalCostofRevenue 473,941 87,445 10,185 1, ,071 G ross Profit Expenses Advertising Auto and Truck Bank Charges BoatShows BoatExpense Clothing ContractServ ices CreditCard Fees Depreciation Dues & Subscriptions Equipm entrental 18,519 7, ,730 3,600 23,848 19,146 13,044 10,286 7,

7 INSH O RE FISHING A SSO C IATIO N,INC STATEM ENT O F O PERATIO NS Forthe year ended Decem ber31,2003 Insurance Interest InternetServices Legaland Accounting Licenses and Taxes Lodging M eals and Entertainm ent M isce laneous O fice Supplies Park Entry Fees Polygraph Tests Postage Printing Prom otionalfees Rent Repairs and M aintenance Telephone Television Production In-kind Travel TotalExpenses 3,310 2,629 7,809 8,369 2,474 16,638 13,050 59O 16,229 1,225 4,571 8,635 55,245 63,845 3,033 1,620 12,643 45,000 21, NetLoss

8 INSHO R E FISHING A SSO CIA TIO N,INC. STATEM ENT O F RETA INED EARNING S Forthe yearended Decem ber 31,2003 Accum ulated Deficit,January 1 NetLoss $ (66,703) (97,943) Distributions Accum ulated Deficit,Decem ber31

9 Cash flows from operating activities NetIncom e INSHO RE FISHING A SSO CIA TIO N,INC STA TEM ENT O F CA SH FLO W S For the yearended Decem ber31,2003 Adjustments to reconcile netincome to netcash provided by operating activities: Depreciation and am ortization (Increase)decrease in accounts receivable (Increase)decrease in employee advances (Increase)decrease in otherassets Increase (decrease)in prepaid tournamentfees Totaladjustments 6,794 (37,219) 31 (624) (41,428) (72,446) Netcash provided (used)by operating activities C ash flow from investing activities: Cash paym ents forthe purchase ofproperty Netcash provided (used)by investing activities Cash flow from financing activities Netloans from shareholders Netcash provided (used)by financing activities (4,421) (4,421) ,000 Netincrease (decrease)in cash and equivalents Cash and equivalents,begining ofyear Cash and equivalents,end ofyear (52,810) $ Supplem entaldisclosures ofcash flow inform ation Cash paid during the yearfor" nterestexpense $ See accountant's reportand notes to financialstatem ents?

10 NSHO RE FISHING A SSO CIATIO N,INC NO TES TO FINA NCIA L STA TEM ENTS For the yearended Decem ber31,2003 NOTE A -O RGANIZATIO N INSHORE FISHING ASSOCIATION,INC.(the Company)wasincorporated underthe lawsof the state offlorida on M arch 14,2000.The Com pany was organized forthe prim ary purpose ofprom oting fishing tournam ents. NOTE B -SUM MARY O F SIG NIFICANT ACCOUNTING PO LICIES A sum m ary ofthe significantaccounting policies consistently applied in the preparation ofthe accom panying financialstatem ents fo low s. Basis ofaccounting The financialstatem ents ofthe corporation are prepared on the accrualbasis ofaccounting and in acco rdance w ith genera ly accepted accounting principles. Cash and Cash Equivalents Forpurposes ofstatements ofcash flows,cash and cash equivalents representunrestricted cash and certifica tes ofdepositw ith originalm aturities of90 days orless. The carrying am ount approxim ates fairvalue beca use ofthe short period to m aturity ofthe instrum ents. Cash and OtherDeposits A lbank balances ofdeposits,up to $100,000 in amount,as ofdecember31,2003,are deposited in institutions insured by the FDIC.Accountbalances over$100,000 have been co lateralized w ith the FederalReserve. A lowance forbad Debts The Com pany considers acco unts receivable to be fu ly co lectible,acco rdingly,no a lowance fordoubtfulaccounts is required. Capitalization and Depreciation Pro perty,equipm entand im provem ents are recorded atcost. Depreciation J3recorded using accelerated methods as setforth by the InternatRevenue Code. Im provem ents are capitalized,while expenditures form aintenance and repairs are charged to expense as incurred. Upon disposalofdepreciable pro perty,the appro priate pro perty acco unts are reduced bythe related costs and accum ulated depreciation.the resulting gains and losses are reflected in the statem entofoperations. 10

11 INSHO RE FISHING A SSO CIATIO N,INC NOTES TO FINANCIAL STATEM ENTS Forthe yearended Decem ber31,2003 NOTE B -SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (CONTINUED) Accounts Payable The Com pany's financialstatem ents do notdisclose the am ountofaccounts payable at Decem ber31,2003. Disclosure ofthis inform ation is required by genera ly accepted acco unting principles. ncom e Taxes The Com pany,w ith the consentofits shareholders,has elected underthe Intern alrevenue Code to be treated as an S corporation. In lieu ofcorporation incom e taxes,the shareholders ofan S corporation are taxed on theirproportionate share ofthe Com pany's taxable incom e. The State offlorida also recognizes the Com pany's election to be treated as an S co rporation. Therefore,no provision orliability forfederalorstate incom e taxes have been included in the financialstatem ents. NOTE C -ESTIMATES The preparation offinancialstatem ents in conform ity w ith genera ly accepted acco unting principles requires m anagem entto m ake estim ates and assum ptions thatafectthe reported am ounts ofassets and liabilities and disclosure ofco ntingentassets and liabilities atthe date ofthe financialstatem ents and the reported am ounts ofrevenues and expenses during the reporting period.actualresults could diferfrom those estim ates. NOTE D -TRANSACTIO NS W ITH AFFILIATES AND RELATED PARTIES Loan Payable-Shareholders AtDecember31,2003,the Company owes shareholders operating loans totaling $183,500 NOTE E -CO M M O N STO CK Com m on stock consists of100 shares ofno-parstock authorized and issued atdecem ber NOTE F-G RA NT REVENUE Inshore Fishing Association received grantfunds from the Louisiana Departm entofeconom ic Developm entto provide funds forthe supportand assistance to produce,hostand conduct three firs tclass fishing tournam ents.

12 NSHO RE FISHING A SSO CIATIO N,INC NOTES TO FINA NCIA L STATEM ENTS Forthe yearended Decem ber31,2003 NOTE G -ADVERTISING The Company incurred advertising costs of$18,519 in 2003.These costs wilbe expensed in the financialstatem ents as incurred. NOTE H -TELEVISIO N PRO DUCTIO N IN-KIND The Fox Sports Netw ork exchanged the production costs ofthe television show s forthe rightto televise these shows.the value ofthese costs have been estimated at$45,

13 IN D EPEN D ENT A C C O U NTA NT'S R EPO RT O N A PPLYING A G REED-UPO N PRO C EDURES INS H O R E FIS H ING A SSO C IA TIO N,INC. For the year ended Decem ber 31,2003

14 PAILET,m~UFI~I~ andl~blanc,l.l.p Certified PublicAccountants m=naqem nlconsultants To the Board ofdirectors Inshore FishingAssociation,Inc. Longwood,Florida IndependentAccountant's Report on Applying Agreed-Upon Procedures W e have perform ed the procedures included in the Louisiana Govem m entalauditguide and enum erated below,which were agreed to by the m anagem entofany Q uasi-public Entity,the LegislativeAuditor,State oflouisiana,and applicable state grantoragencylagencies solely to assistthe users in evaluating m anagem ent's assertions aboutinshore Fishing Association,Inc.'s com pliance with certain laws and regulations during the yearended Decem ber31,2003 included inthe accom panyinglouisianaa testation Questionnaire.This agreed-upon procedures engagem entwas perform ed in accordance with standards established by the Am erican Institute ofcertified PublicAccountants and applicable standards ofgovernm entauditing Standards.The sufficiency ~# these procedures is solely the responsibilityofthe specified users ofthe report. Consequently.we m ake no representation regarding the suficiency ofthe procedures described below eitherforthe purpose forwhich this report has been requested orforany otherpurpose. Federal,State,and LocalAwards 1. Determ ine the am ountoffederal,state and localaward expenditures forthe fiscalyear,by grantand grantyear. nshore FishingAssociations,Inc.=s Federalaward expenditures fora lfederalprograms for the fiscalyearfo low:!~,j..,~-l./i,'.~:.-~-j.:~,~~k:fz~g,:.~'#.~ : et;~,~:!:.~:.~.-#.d~.~..~.~ Louisiana D epa _ r. tm cntof Econom ic $75,000 D evelopm ent TotalExpenditures $75,000 Foreach Federal,state,and localaward,we random ly selected 6 disbursem ents from each award adm inistered during the period underexam ination,provided thatno m ere than 30 disbursem ents would be selected N.CausewayBIvd.,~ 701~Metaifie,LA TelelYacx~ t504) ~fax(504) ,1~1~ 20tSt.CharlesAve.,Suite2559~New Orleans,LA T elephone (504) ,Fax(504)837-7t02 Menth ol InternationaIGroup ofaccounting Firm s " Ment~er Fm ',s in PfincipalCities ~ AICPA Private Cornplmles PracticeSlmflon

15 Check Date Num ber Payee Amount 3/23/ Barry Greene $2, / The Laser's Edge,Inc. $5, /17/ Florida Sportsman $ /11/ TightLines Communications $ Rigs,Reefs &W recks,inc. $ /17/ Louisiana Sportsman Magazine $1, Forthe items selected in procedure 2,we traced the six disbursements to supporting docum entation as to properam ountand payee. W e exam ined supporting docum entation foreach ofthe six selected disbursem ents and found thatpaym entw as forthe properam ountand m ade to the correctpayee. 4. Forthe items selected in procedure 2,we determ ined ifthe six disbursem ents were properly coded to the correctfund and generalledgeraccount. Six ofthe payments were properly coded to the correctfund and generalledgeraccount. 5. Forthe item s selected in procedure 2,we determ ined whetherthe six disbursem ents received approvalfrom properauthorities. Inspection ofdocum entation supporting each ofthe six selected disbursem ents indicated approvals from the accountantand the presidentofthe com pany. 6. Forthe item s selected in procedure 2:Forfederalawards,we determ ined whetherthe disbursem ents com plied with the applicable specific program com pliance requirem ents summarized in the Compliance Supplement(orcontained in the grantagreement,ifthe program is notincluded in the Compliance Supplement)and forstate and localawards,we determ ined whetherthe disbursem ents com plied with the grantagreem ent,refating to: Activities a lowed oruna lowed: Eligibility Reporting W e reviewed the previously listed disbursem ents fortypes ofservices a lowed ornot a lowed. No exceptions were noted. W e reviewed the previously listed disbursem ents foreligibility requirem ents. No exceptions were noted. W e reviewed the previously listed disbursements forreporting requirem ents No exceptions were noted.

16 7. Forthe programs selected fortesting in item (2)thathad been closed outduring the period underreview,we com pared the close-outreport,when required,with the entity's financial records to determ ine whetherthe am ounts agree. M eetings Notapplicable 8. W e exam ined evidence indicating thatagendas form eetings recorded in the m inute book were postedasanopenmeetingasrequired by LSA-RS 42:1through42:12 (the open meetingslaw), Notapplicable Com prehensive Budget 9. Fora lgrants exceeding five thousand do lars,we determ ined thateach applicable federal, state,orlocalgrantoragency/agency was provided with a com prehensive budgetofthose grants thatincluded the purpose and duration,and forstate grants included specific goals and objectivesand measuresofperformance. 10.W e reviewed any prior-yearsuggestions,recom m endations,and/orcom m ents to determ ine the extentto which such matters have been resolved. Notapplicable W e were notengaged to,and did not,perform an examination,the objective ofwhich would be the expression ofan opinion on managem ent's assertions.accordingly,we do notexpress such an opinion. Had we performed additionalprocedures,othermaters m ighthave com e to our attention thatwould have been reported to you. This report is intended solely forthe use ofm anagem entofinshore Fishing Association,Inc.,the Legislative Auditor(State oflouisiana),and the applicable stategrantoragencylagenciesand should notbe used by those who have notagreed to the procedures and taken responsibility for the suficiency ofthe procedures fortheirpurposes. UnderLouisiana Revised Statute 24:513, this reportis distributed by the Legislative Auditoras a public docum ent. July 7,2004

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