ANNUAL FINANCIAL STATEMENTS

Transcription

1 PONCHATOULA VOLUNTEER FIRE DEPARTMENT, INC. ANNUAL FINANCIAL STATEMENTS As of December 31, 2006 and for the Year Then Ended With Supplemental Information Schedules Under provisions of state law, this report is a public document. A copy of the report has been submitted to the entity and other appropriate public officials The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court. 35 rn Release DateJ7_JL L/{12. ±J > S co PHIL HEBERT CERTIFIED PUBLIC ACCOUNTANT A PROFESSIONAL ACCOUNTING CORPORATION O CO

2 Table of Contents December 31,2006 Page Independent Auditor's Report 3 Annual Financial Statements: Statement of Financial Position 4 Statement of Activities 5 Statement of Cash Flows 6 Notes to the Financial Statements 7 Other Supplemental Information: Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 12 Schedule of Prior Year Findings 14 Schedule of Findings and Questioned Costs 15 Management's Corrective Action Plan 17 Louisiana Attestation Questionnaire 18

3 Phil Hebert, CPA MEMBER A PROFESSIONAL ACCOUNTING CORPORATION MEMBER American Institute of Society of Louisiana Certified Public Post Office Box IIS1 Ponchatoula, Louisiana Certified Public Accountants Office: (985) Fax (985) Accountants To the Officers of Ponchatoula Volunteer Fire Department, Inc. Ponchatoula, Louisiana Independent Auditor's Report I have audited the accompanying statement of financial position of the Ponchatoula Volunteer Fire Department, Inc. (a nonprofit corporation) as of December 31,2006, and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of the Fire Department's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Ponchatoula Volunteer Fire Department, Inc. as of December 31,2006, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, I have also issued my report dated November 15,2007, on my consideration of the Ponchatoula Volunteer Fire Department, Inc.'s internal control over financial reporting and my tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, and other matters. The purpose of that report is to describe the scope of my testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Governmental Auditing Standards and should be considered in conjunction with this report in considering the results of my audit. Respectfully submitted, Phil Hebert CPA A Professional Accounting Corporation November 15, 2007

4 Statement of Financial Position December 31,2006 Assets Current Assets Unrestricted Assets Cash and Cash Equivalents $ 74,454 Investments in Certificates of Deposits 148,611 Restricted Assets Cash and Cash Equivalents 288,711 Investments in Certificates of Deposits 158,439 Receivables: Fire Protection District No. 2 Contract Fees 137,211 Prepaid Insurance 25,359 Total Current Assets 832,785 Capital Assets Land Equipment 11,768 5j6g Accumulated Depreciation (5,168) Total Capital Assets 11,768 Total Assets $ 844J553 ' Liabilities and Net Assets Current Liabilities: Accounts Payable $ 34,497 Total Current Liabilities/ Total Liablities 34,497 Net Assets: Unrestricted Temporally Restricted 575,223 Total Net Assets Total Liabilities and Net Assets $ 844,553 The accompanying notes are an integral part of this statement. 4

5 Statement of Activities For the Year Ended December 31,2006 Support and Revenues: Rural Fire District No. 2 Contract Fees Ad Valorem Taxes State Revenue Sharing Fire Insurance Premium Rebate Interest Income Rent, Training Center Miscellaneous Donations Fund Raising Net Assets Released From Restrictions Restriction Satisfied by Payments Total Support and Revenue Unrestricted 5, ,500 41, , ,715 - $ - - Temporarily Restricted 455,101 $ 68,248 32,314 6,202 14,500 19, (358,072) 237,429 Total 455,101 68,248 32,314 11,315 14,500 19,136 2,500 41, ,144 Expenses: Program Services, Fire Protection: Advertising Capital Outlay Conventions and Training Dues Fire Prevention Food & Beverage Fuel Fund Raising Gifts and Donations Insurance Lawn Care Maintenance, Building and Equipment Medical Municipal Reimbursement Office Expense Supplies Uniforms Utilities Supporting Services: Professional Fees Total Expenses 1,083 59,699 6,987 1,523 6,264 22, ,701 6,316 55,080 3,970 20,015 9, ,354 5,944 17,123 1,319 16,852 5, ,462 1,083 59,699 6,987 1,523 6,264 22, ,701 6,316 55,080 3,970 20,015 9, ,354 5,944 17,123 1,319 16,852 5, ,462 Change in Net Assets 15, , ,682 Net Assets, Beginning of Year Prior Period Adjustment (Note 10) Net Assets, End of Year 300, , ,580 37, ,881 $ 234,833 $ 575,223 $ 810,056 The accompanying notes are an integral part of this statement. 5

6 Statement of Cash Flows For the Year Ended December 31,2006 Cash Flows From Operating Activities: Change in Net Assets $ 252,682 Adjustments to Reconcile Change in Net Assets to Net Cash Provided by Operating Activities (Increase) Decrease in Accounts Receivable (60,390) (Increase) Decrease in Prepaid Insurance 1,292 Increase (Decrease) in Accounts Payable 8,597 Prior Period Adjustment 37,301 Net Cash Provided by Operating Activities 239,482 Cash Flows From Investing Activities: Investments (9,340) Net Cash (Used) From Investing Activities (9,340) Net Increase (Decrease) in Cash 230,142 Cash, Beginning of Year 133,023 Cash, End of Year $ 363,165 Reconciliation of Cash and Cash Equivalents to the Statement of Net Assets: Cash and Cash Equivalents, Unrestricted $ 74,454 Cash and Cash Equivalents, Restricted 288,711 Total Cash and Cash Equivalents $ 363,165 The accompanying notes are an integral part of this statement. 6

7 Notes to the Financial Statements As of and for the Year Ended December 31,2006 Introduction The Ponchatoula Volunteer Fire Department, Inc. (hereinafter referred to as the "Fire Department") is a Louisiana nonprofit corporation incorporated on May 29,1959. Its purpose is to operate exclusively as a volunteer fire-fighting organization to provide fire protection and emergency response services in the City of Ponchatoula and surrounding rural areas. The Fire Department is governed by a board of directors and officers consisting of a chief, a first assistant chief, a second assistant chief and a secretary/treasurer, each of which is elected by the membership. Currently the Fire Department consist of 51 active volunteer fireman. The Fire Department maintains an office in Fire Station Number 1 of the City of Ponchatoula and maintains equipment in four fire stations in the City. 1. Summary of Significant Accounting Policies Basis of Presentation The financial statements have been prepared on an accrual basis and in conformity with standards promulgated by the American Institute of Certified Public Accountants in its audit guide, Audits of Certain Nonprofit Organizations and its Statements of Position Fund Accounting The accounts of the Fire Department are maintained in accordance with the principles of fund accounting whereby resources are classified for accounting and reporting purposes into funds established according to their nature and purpose. Separate accounts are maintained for each fund. Externally restricted funds may only be utilized in accordance with the purposes established by the source of the funds and are in contract with unrestricted funds over which the Board retains full control to use in achieving any of its purposes. The accompanying financial statements present financial resources accounted for in the following funds: The Rural Fire District No. 2 Current restricted Fund represents revenue and expenses related to the operation of fire protection and emergency response services in the unincorporated rural areas surrounding the City of Ponchatoula under terms of an agreement between the Fire Department and the Rural Fire Protection District No. 2 of Tangipahoa Parish. The accompanying financial statements include the assets, liabilities, and fond balance and the support, revenue, expenses, capital additions and cash flows reported in funds other than the Rural Fire District No. 2 Current Restricted Fund. These funds are considered unrestricted. The Rural Fire District No. 2 Current Fund is considered restricted because under the terms of the contract with the Rural Fire Protection District No. 2 of Tangipahoa Parish these funds "shall be expended solely for the purposes of operating, maintaining and/or purchasing of equipment and supplies...and salaries if approved by the Fire District No. 2."

8 Notes to the Financial Statements As of and for the Year Ended December 31,2006 Support and Revenue Support consists primarily of contract payments received from Rural Fire Protection District No. 2 of Tangipahoa Parish in the form of ad valorem taxes, state revenue sharing funds and fire insurance rebate funds. The Fire Department receives a percentage of the total funds available to Rural Fire Protection District No. 2 based on a formula contained in the original contract agreed to by all participating fire departments in Tangipahoa Parish. The ad valorem tax allocation is established in January of each year and disbursed by Rural Fire Protection District No. 2 on a quarterly basis. State revenue sharing and fire insurance rebate funds are disbursed to participating fire departments by Rural Fire Protection District No. 2 as the funds become available. As a result, ad valorem taxes and interest income are recognized as income in the period earned. State revenue sharing funds, fire insurance rebate funds, and all other revenue are recognized as income when received. Cash and Cash Equivalents Cash and cash equivalents include demand deposits, interest bearing demand deposits, and time deposits. Investments Certificates of Deposit with a maturity of more than 90 days from the date of purchase are considered to investments. Income Taxes The Fire Department is nonprofit and exempt from income taxes under Section 501 (CX4) of the Internal Revenue Code. Therefore, no provision is made for income taxes. Fair Values of Financial Instruments The Fire Department's financial instruments, none of which are held for trading purposes, include cash and Investments in Certificates of Deposit. The following methods and assumptions used by the Fire Department in estimating its fair value disclosures for financial instruments are : Cash and Investment in Certificates of Deposit: The carrying amounts reported in the statement of financial position approximate fair value because of the short maturities of those instruments. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Statement of Cash Flows For the purposes of the statement of cash flows, all investments with maturity of 90 days or less from the date of purchase are considered to be cash equivalents.

9 Financial Statement Presentation Ponchatoula Volunteer Fire Department, Inc. Notes to the Financial Statements As of and for the Year Ended December 31,2006 The Fire Department has adopted Statement of Financial Accounting Standards (SFAS) No. 117, "Financial Statements of Not-for-profit Organizations." Under SFAS No. 117, the Fire Department is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. In addition the Fire Department is required to present a statement of cash flows. As permitted by the statement, the Fire Department does not use fund accounting. Contributions The Fire Department has also adopted SFAS No. 116, "Accounting for Contributions Received and Contributions Made". Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence or nature of any donor restrictions. 2. Cash and Cash Equivalents Cash and cash equivalents at December 31,2006, consisted of the following: Demand Deposits $ 363,165 Total $ 363, Investments in Certificates of Deposits Investments as of December 31,2006, are summarized as follows: Carrying Cost Fair Value Value Unrestricted: Certificates of Deposit $ 148,611 $ 148,611 $ 148,611 Temporarily Restricted: Certificates of Deposit $ 158,439 $ 158,439 $ 158, Receivables Receivables include amounts due from Rural Fire Protection District No. 2 at December 31, 2006, and are summarized as follows: Due from Rural Fire Protection District No. 2: Ad Valorem Taxes $ 137,211 No allowance for uncollectible accounts is required at December 31,2006.

10 Notes to the Financial Statements As of and for the Year Ended December 31, Contract with Rural Fire Protection District No. 2 The Tangipahoa Parish Council (the parish governing authority) created Rural Fire Protection District No. 2 of Tangipahoa Parish (District) funded by an ad valorem tax to provide fire protection and emergency response services in the rural areas of the parish. The boundaries of the District include the unincorporated areas of Tangipahoa Parish. The Fire Department adopted a resolution and entered into an agreement with Rural Fire Protection District No. 2 to provide fire protection and emergency response services in the unincorporated areas surrounding the City of Ponchatoula. Funding is provided by an ad valorem tax and related state revenue sharing. Under the terms of the contract with the District, these funds "shall be expended solely for the purposes of operating, maintaining, and/or purchasing of equipment or supplies and salaries if approved by Fire District No.2." Equipment purchased remains the property of the Rural Fire Protection District No. 2 and is not recorded in the accompanying financial statements. 6. Intergovernmental Agreements On September 25,2000, the Ponchatoula Volunteer Fire Department entered into an intergovernmental agreement between Rural Fire Protection District No. 2, the City of Ponchatoula and the Ponchatoula Volunteer Fire Department. The agreement was for five years. This agreement and contract set forth the terms and conditions by which funds of the Fire District, designated to be paid to the Fire Department for fire coverage, was to be paid to the City by the Fire Department for salary increases, employer retirement costs, and other associated costs. The associated costs include overtime, FICA, Medicare, and worker's compensation insurance. The City will use these funds as a reimbursement as per this agreement. At December 31,2006, the Department reimbursed the City $97,354 charged to Municipal Reimbursement. An March 27,2006, the Ponchatoula Volunteer Fire Department entered into an intergovernmental agreement between Rural Fire Protection District No. 2, the City of Ponchatoula and the Ponchatoula Volunteer Fire Department. This agreement shall be for the calendar year January 1, 2006 through December 31,2006. This agreement and contract sets forth the terms and conditions by which funds of the Fire District, designated to pay to the Fire Department for fire coverage, will be paid to the City and the City will use said funds for salaries of Fire District in providing fire protection coverage to rural parts of Tangipahoa Parish within the Fire District's jurisdiction surrounding the City. At December 31,2006, Rural Fire Protection District No. 2 paid the City of Ponchatoula $50,000 under this agreement. The payment of $50,000 is recorded as Ad Valorem Tax Revenue and Municipal Reimbursement. 7. Donated Services and Facilities All of the Fire Department's program and supporting services are provided by volunteers. In addition, the Fire Department utilizes an office, two fire stations, equipment, paid fireman, and various administrative expenses at no cost to the Fire Department. No amounts have been included in the financial statements for donated services or facilities since no objective basis is available to measure the value of such services and facilities. 10

11 8. Fair Values of Financial Instruments Ponchatoula Volunteer Fire Department, Inc. Notes to the Financial Statements As of and for the Year Ended December 31,2006 The following methods and assumptions were used by the Department in estimating its fair value disclosures for financial instruments: Cash and Cash Equivalents: The carrying amounts reported in the statement of financial position approximate fair values because of the short maturities of those instruments. Investments in Certificates of Deposit: The carrying amounts reported in the statement of financial position approximate fair values. Interest earned on these investments has been credited to the accounts at December 31,2006. The estimated fair value of the Fire Department's financial instruments, none of which are held for trading purposes, are as follows: Carrying Fair Financial Assets: Cash $ 363,165 $ 363,165 Certificates of Deposit 307, , Concentrations During the year ended December 31,2006, $555,663 or 86.26% of the Department's total revenues was derived from funding by the Tangipahoa Parish Fire Protection District No Prior Period Adjustment Temporarily Unrestricted Restricted Net Assets Net Assets Net Assets, Beginning of Year, Before Prior Period Adjustment $ - $ 300,493 Record Unrestricted Net Assets Not Included in Prior Financial Statements 219,580 Adjust Prior Period Accounts Receivable to Actual - 37,301 Net Assets, Beginning of Year, After Prior Period Adjustment $ 219,580 $ 337,794 11

12 Phil Hebert, CPA MEMBER American Institute of A PROFESSIONAL ACCOUNTING CORPORATION MEMBER Society of Louisiana Certified Public Post Office Box 1151* Ponchatoula, Louisiana Certified Public Accountants Office: (985) Fax (985) Accountants Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Officers of Ponchatoula Volunteer Fire Department Inc. Ponchatoula, Louisiana I have audited the financial statements of the Ponchatoula Volunteer Fire Department, (a nonprofit corporation) as of and for the year ended December 31, 2006, and have issued my report thereon dated November 15, I conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States. Internal Control over Financial Reporting In planning and performing my audit, I considered the Ponchatoula Volunteer Fire Department's internal control over financial reporting as a basis for designing my auditing procedures for the purpose of expressing my opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Department's internal control over financial reporting. Accordingly, I do not express an opinion on the effectiveness of the Ponchatoula Volunteer Fire Department's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Ponchatoula Volunteer Fire Department's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Ponchatoula Volunteer Fire Department's financial statements that is more than inconsequential will not be prevented or detected by Ponchatoula Volunteer Fire Department's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Ponchatoula Volunteer Fire Department's internal control. My consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. I did not identify any deficiencies in internal control over financial reporting that I consider to be material weaknesses, as defined above. 12

13 Phil Hebert, CPA A PROFESSIONAL ACCOUNTING CORPORATION Compliance and Other Matters As part of obtaining reasonable assurance about whether Ponchatoula Volunteer Fire Department's financial statements are free of material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of my audit and, accordingly, I do not express such an opinion. The result of my tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying schedule of findings and questioned costs as items , and schedule of prior year findings as item Ponchatoula Volunteer Fire Department's responses to the findings identified in my audit are described in Management* s Corrective Action Plan. I did not audit management's responses and, accordingly I express no opinion on them. This report is intended solely for the information and use of management, the Louisiana Legislative Auditor, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document. Sincerely, Phil Hebert, CPA A Professional Accounting Corporation November 15,

14 Section I - Summary of Auditor's Reports Section I not applicable Section II - Financial Statement Findings Meetings Ponchatoula Volunteer Fire Department, Inc. Schedule of Prior Year Findings For the Year Ended December 31,2006 Criteria: The Open Meetings Law (LSA-RS 42:1 through 42:12) requires that agendas for meetings are posted on the door of the Department's office building or advertised in the news paper. Condition: The Department did not advertise or post the agenda for each meeting. Cause: The Department did not advertise or post the agenda for each meeting. Effect: The Department is not in compliance with the Open Meetings Law. Recommendation: We recommend that the volunteer fire department post a meeting notice and agenda for regular monthly meetings on the door of the fire station where the meetings are held as required. Not Resolved: Management did not post a meeting notice and agenda for regular meetings on the door of the fire station. Section in - Federal Award Findings and Questioned Costs Section III not applicable. 14

15 Schedule of Findings and Questioned Costs For the Year Ended December 31,2006 I have audited the basic financial statements of the Ponchatoula Volunteer Fire Department as of and for the year ended December 31, 2006, and have issued my report thereon dated November 15,2007. I conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. My audit of the financial statements as of December 31, 2006 resulted in an unqualified opinion. Section I Summary of Auditor's Reports a. Report on Internal Control and Compliance Material to the Financial Statements Internal Control Material Weakness, None Other Conditions, None Compliance Compliance Material to Financial Statements, Yes b. Federal Awards, Not applicable Section II Financial Statement Findings : Violations of Engagement Completion Filing Deadline Criteria: State law, LSA-R.S. 24:513 requires that the annual audit be completed and submitted to the Louisiana Legislative Auditor within six months of the close of the entity's fiscal year. Condition: The Department did not complete and submit the annual financial statements for the fiscal year ended December 31, 2006, by the deadline of June 30,2007. Cause: The auditor was engaged in June 2007 to perform the audit. Additional time was required to perform the audit that extended beyond the deadline. Effect: The Department is not in compliance with the State Filing requirements. Recommendation: I recommend management engage an auditor prior to the end of the fiscal year to perform an audit of the Department's financial statements as necessary : Violation of Article 7, Section 14 of the Louisiana Constitution, Bonus Criteria: Article 7, Section 14 of the Louisiana Constitution prohibits the funds, credit, property, or things of value of the state or of any political subdivision shall not be loaned, pledged, or donated to or for any person, association, or corporation, public or private. (Continued) 15

16 Schedule of Findings and Questioned Costs For the Year Ended December 31,2006 Condition: The Department is funded primarily by contract payments received from Rural Fire Protection District No. 2 of Tangipahoa Parish and by donations and fund raising it receives from the general public. The Department paid bonuses to some of its members in December 2006 as a token of appreciation for their work. Some of the members who received the bonuses are compensated by the City of Ponchatoula and therefore, are public employees. As such they may only receive compensation and/or benefits that they have earned. Public employees are not allowed to receive bonuses or any other type of gratuitous, unearned payment. Cause: The bonuses were a token of appreciation for the hard work. Effect: The Department may be in violation of Article 7, Section 14 of the Louisiana Constitution. Recommendation: I recommend that the Ponchatoula Volunteer Fire Department discontinue this action, and seek an Attorney General Opinion that addresses their specific questions regarding this matter. (Concluded) 16

17 Management's Corrective Action Plan For the Year Ended December 31,2006 Section I Internal Control and Compliance Material to the Financial Statement : Violations of Engagement Completion Filing Deadline Recommendation: I recommend management engage an auditor prior to the end of the fiscal year to perform an audit of the Department's financial statements as necessary. Planned Corrective Action: Management will engage an auditor to perform the audit prior to the end of the fiscal year. Russell Hoover is the responsible party in this matter : Violation of Article 7, Section 14 of the Louisiana Constitution, Bonus Recommendation: I recommend that the Ponchatoula Volunteer Fire Department discontinue this action, and seek an Attorney General's Opinion that addresses their specific questions regarding this matter. Planned Corrective Action: Management will discontinue this action. Russell Hoover is the responsible party in this matter Meetings Recommendation: I recommend that the volunteer fire department post a meeting notice and agenda for regular monthly meetings on the door of the fire station where the meetings are held as required. Planned Corrective Action: Management will post a meeting notice and agenda for regular monthly meetings on the door of the fire station. Russell Hoover is the responsible party in this matter. Section II Internal Control and Compliance Material to Federal Awards Section II not applicable. Section HI Management Letter Section III not applicable. 17

18 Phil Hebert. CPA Post Office Box 1151 Ponchatoula. LA LOUISIANA ATTESTATION QUESTIONNAIRE (For Attestation Engagements of Quasi-public Entities) August (Date Transmitted) In connection with your review of our financial statements as of December 31, 2006 and for the period then ended, and as required by Louisiana Revised Statute 24:513 and the Louisiana Governmental Audit Guide, we make the following representations to you. We accept full responsibility for our compliance with the following laws and regulation and the internal controls over compliance with such laws and regulations. We have evaluated our compliance with the following laws and regulations prior to making these representations. These representations are based on the information available to us as of June 12, Federal, State, and Local Awards We have detailed for you the amount of Federal, state and local award expenditures for the fiscal year, by grant and grant year. Yes [X] No [ ] All transactions relating to federal, state, and local grants have been properly recorded within our accounting records and reported to the appropriate state, federal, and grantor officials. Yes[X] No[] The reports filed with federal, state, and local agencies are properly supported by books of original entry and supporting documentation. Yes[X] No[] We have complied with all applicable specific requirements of all federal, state, and local programs we administer, to include matters contained in the OMB Compliance Supplement, matters contained in the grant awards, eligibility requirements, activities allowed and unallowed, and reporting and budget requirements. Open Meetings Yes [X] No [ ] Our meetings, as they relate to public funds, have been posted as an open meeting as required by LSA-RS 42:1 through 42:12 (the open meetings law). Yes [X] No [ ] 18

19 Budget For each federal, state, and local grant we have filed with the appropriate grantor agency a comprehensive budget for those grants that included the purpose and duration, and for state grants included specific goals and objectives and measures of performance Yes [X ] No [ Prior Year Comments We have resolved all prior-year recommendations and/or comments. Yes[X] No We have disclosed to you all known noncompliance of the foregoing laws and regulations, as well as any contradictions to the foregoing representations. We have made available to you documentation relating to the federal, state, and local grants, to include the applicable laws and regulations. We have provided you with any communications from regulatory agencies or other sources concerning any possible noncompliance with the foregoing laws and regulations, including any communications received between the end of the period under examination and the issuance of this report. We will also disclose to you, the Legislative Auditor, and the applicable state grantor agency/agencies any known noncompliance which may occur up to the date of your report. Stanley Ragan, Chief Russell Hoover, Secretary/ Treasurer V Date VDate r BravilleJ&Blanc, Ftfst Assistant Chief S ' Kenny Ballard, Second Assistant Chief Date 19