Jnaerprovisions ofstate law,thcs report is a public docum ent. A copy ofthe reporthas been subm it.

Transcription

1 Louisiana State Police R etirem entsystem Baton R ouge,louisiana June 30,1997 Jnaerprovisions ofstate law,thcs report is a public docum ent. A copy ofthe reporthas been subm it. ted to the audited,or review~-'d, entity and otherappropriale pl~biic officials. The report is available for public inspe~ ion at the Baton Rouge office efthe Legislative Auditor and,where appropriate,atthe office ofthe pari~13,. c;le~'k,of~.~ourt IJ4,.j ~ ~. ~c.~3t ~ l~ase Date

2 Table of Contents IndependentA uditor's Report Statem entof Plan N eta ssets Statem entof Changes in Plan A ssets N otesto FinancialStatem ents Supplem entalinform ation Schedule of Em ployer C ontributions Schedule of Funding Progress Schedule of Trend D ata R eporton C om pliance and on InlernalC ontrolover FinancialReporting based on an A uditof FinancialStatem ents Perform ed in A ccordance w ith G overnm entanclitino R~ nclarrl Page 3 Page 5 Page 6 Page 7 Page 15 Page 16 Page 17 Page 18 Page 19

3 HAW THORN,W AYMOUTH ~ CARRO LL,L.L.P, H DANIEL C/~RROLL,C PA ROBERT E W ALES,C RA CARL L HANCOCK,C #A d CHARLES PARKER.C #A LOUIS O.M CKNIGHT, I,O F!A ANTHDNY J CRISTINA, I,C RA CHARLES R ~'EVEY,,JR.,C PA DAVID J BRDUSSARD.C F?A CEIqTIFIED PU BLIC ACCO U N TA N TS 8555 UNITED PLI~ A BLVD. BATON ROUGE,LOUISIANA 70B09 f504)923 3ODD *FAX 1504) Septem ber20,1997 IndependentA uditor'sr eport Board of Trustees Louisiana State Police Retirem entsystem Baton R ouge,louisiana M embersof the Board W e have audited the accom panying com ponentunitstatem entsof Plan netassetsof the Louisiana State Police R etirem entsystem Baton R ouge,louisiana asof June 30,1997 and June 30,1996,and the related statem entof changesin Plan netassetsfor the years then ended. These financialstatem ents are the responsibility of the Louisiana Slate Police Retirem entsystem 's m anagem ent. O ur responsibility is to express an opinion on these financialstatem entsbased on ouraudit. W e conducted our audits in accordance w ith generally accepted auditing sta ndards and the standardsapplicable to financialauditsconta in ed in G overnm entauditing Standards,issued by the Com ptrollerg eneralof the U nited States.Those sta ndardsrequire thatwe plan and perform the auditto obtain reasonable assurance aboutwhetherth e financialstatem ents are free of m aterial m isstatem ent. An auditin cludesexam ining,on a testbasis,evidence supporting the am ountsand disclosuresin the financialsta tem ents. A n auditalso includesassessing the accounting principles used and significantestim atesm ade by m ana gem ent,asw ellasevaluating the overallfinancial sta tem entpresentation. W e believe thatour auditsprovide a reasona ble basisforouropinion. In ouropinion,the com ponentunitfinancialstatem entsreferred to above presentfairly,in allm aterialrespects,the financialposition of th e Louisiana State Police Retirem entsystem asof June 30,1997 and June 30,1996,and the resullsof itsoperations forthe:yearsthen entled in conform ity w ith generally accepted accounting principles. In accordance with ~0vernm em Auditing.S~ndarcl~,we have also issued a reportdated Septem ber 20, 1997 on our consideration of the Lo uisiana State Police Retirem entsystem 's internalcontroloverfinancialreporting and ourtestsof com pliance w ith certain provisionsof law s,regulations,contracts and grants.

4 O ur audit w as conducted for the purpose of form ing an opinion on the com ponentunit financial statem ents taken as a w hole. The Required Supplem entary Inform ation and the Supporting Schedules w hich are also the responsibility of the System 's m anagem ent,are presented for purp osesof additionalanalysisand are nota required part of the basic financialstatem ents of thesystem. Such additionalinformation hasbeen subjected to theauditing proceduresapplied in ourauditof the financialstatem entsand,in ouropinion,isfairly stated in allm aterialrespects w hen considered in relation to the financialstatem entstaken asa w hole. Y ourstruly

5 Louisiana State Police Retirem entsystem Statem entof Plan N eta ssets June 30,1997 and June 30,1996 A ssets Cash and cash equivalents _ $ _2_ $9.997~949 R eceivables Em ployercontributions Em ployee contributions A ccounts receivable investm enttrades Interestand dividends O therreceivables 346, ,148 96,152 1,139,662 3, , , , ,98(I _.._ Investm ents,atfair value U.S.G overnm entobligations U.S.G overnm entagency obligations Com m on stocks-dom estic C om m on stocks-ibreign Bonds-dom estic Bonds -foreign 7,576,048 22,709,517 69,386,631 13,449,133 33,301,072 _ 626,938 21,029,462 17,993,492 60,488,510 5,710,857 8,112,750 T_Q.t.a1invest/I~nts Furniture,fixtures and equipm ent, atcost,netof accumulated depreciation of$37,239 and $34,063 Totalassets _ _0_0 1.7.,~ Liabilities A ccountspayable investm enttrades Payrolldeductionspayable O therpayables _.~ 118, , ,586 95, Total~ DJlJlJ~ N eta ssets H eld in TrustFor Pension Benefits (A schedule offunding progressispresented on page 17) _ ~

6 Louisiana State Police R etirem entsystem Statem entof C hangesin Plan A ssets Years Ended June 30,1997 and June 30,1996 A dditions Contributions Em ployer Em ployee $39,705,704 _ $22,409, Totalcontributions Q Investm entincom e Netappreciation (depreciation)in fairvalue of investm ents Interestand dividends G ain on sale of investm ents Lessinvestm entexpense 14,935,376 6,384,457 3,746,448 _.( ) 9,707,657 4,906,975 2,435,745 ( ) N etinvestm entincom e TotaladditiorL,Ṣ..~L AL ,454 D eductions Retirem entbenefits Reflm dsof em ployee contributions A dm inistrative expense TotaldeducLkm s 16,478,217 84,997 _ ,206,850 78,274 20O.659 N etincrease 49,503,255 25,658,671 N eta ssets H eld in TrustFor Pension Benefits Be#nning ofyear E nd of Y ear 12~ _

7 Louisiana State Police R etirem ent System N otes to FinancialStatem ents June 30~1997 N ote 1-Plan D escription The LouisianaState Police RetirementSystem (System)isthe administratorof asingle employer defined benefitplan and isa com ponenturfitof tbe State of Louisiana included in the state'scai:r as a pension trust fund. The System w as established and provided for w ithin Title II of lhc Louisiana Revised Statutes(LRS).The System wasfirstestablished by Legislative ActNo.293 of The Lo uisiana State Police Retirem entsystem adopted G overnm entala ccounting StandardsBoard (GASB),Statem entno.25,financialreporting for Defined BenefitPension Plans and N~te D isclosures fox'd efined Contribution Plans,forthe fiscalyearended June 30,1996. The plan m em bership asof June 30,1997,isasfollow s R etirees and beneficiariescurrently receiving benefits and deferred retirem entplan participants Term inated vested m em bersnotyetreceiving benefits Current,active em ployees: V ested N onvested N um ber 1, Plan benefits are asfollow s (a) RegularRetirement-A membe rshallbe eligible forregularretirementbased on the followin~ (1) 10 years ofservice creditatage 50. Benefitswillbedeterm ined by taking 25% ofan individual'saverage salary increased by 1% foreach additional3 m onthsof service credit beyond the l0th year and extending through the end of the 14th year. (2) 15 years ofservice creditatage 50. Benefitswillbe determ ined by taking 45% ofan individual's average salary increased by 1% foreach additional4 m onths of service cred it beyond the 15th yearand extending through the end of the 19th year. (3) 20 yearsof service creditforthose employed on orafterseptem ber8,1978.benefitswill be 60% of the average salary com m encing upon retirem entif age 50 orupon attaining the age of 50 if lessthan 50 atthe tim e of retirem ent. Benefitsshallbe increased by 1% for each additional4 m onthsof service beyond the 20th yearup to a m axim um of 100%. C om pulsory retirem entage is65

8 Louisiana State Police R etirem entsystem N otes to FinancialStatem ents June 30,1997 Note l-description ofplan (Continued) (b) Disability Retirement Eligibility (1) Nonservice-related totaldisability -five yearsofservice (2) Service-related totaldisability -condition ofemploym ent Benefit-D isabled eligible m em bersw illreceive a benefitequalto 50 % of average salary,plus one and one-half percentof average salary for each year of service in excess of ten years. D isability benefits shallbe m odified whenever a non-service disability retiree is engaged in gainfulem ploym ent:paying m ore than the difference between hisretirem entallow ance and his finalaverage com pensation. Forservice-related disability,there isno lim itation. (c) SurvivorBenefits-Survivorbenefitsare payable firstto the surviving spouse;secondly,to m inorchildren who are underthe age of eighteen yearsora studentunderthe age of twent)- three yearsand;thirdly,to the dependentparentorparentsof the deceased em ployee,provided they derived theirm ain supportfrom the em ployee. (d) D eath Benefits (1) Death from injury received in theline ofduty -thesurviving spouseshallreceive75~ of the currentsalary oftheemployee atthe time of injury. If there isno surviving spouse, m inorchildren shallreceive m onthly benefitsasfollow s: (A)4 ormore children -60% oftheaverage salary,equally divided (B) 3 children -50% of the average salary,equally divided (C)2 children -40% of the average salary,equally divided (D)1child -30% ofthe average salary If no surviving spouse or m inor children,then dependentparents shallbe entitled to a m onthly pension of 25% of the average salary. (2) Death ofemployee notin performance ofduty -the surviving spouse shallbe pensioned as follow s: (A)Underfive yearsofservice credit.-25% ofthe average salary

9 Louisiana State Police R etirem entsystem N otes to FinancialStatem ents June 30,1997 Note 1-Description ofplan (Continued) (d) Death Benefits(Continued) (B) (c) (D) (E) Five yearsbutunderten yearsofservice credit-30% ofthe average salary. Ten yearsbutunderfifteen yearsofservice credit-40 % ofth e average salary Fifteen yearsbutundertwenty yearsof service credit-50% ofthe average salary. Twenty yearsofservice orm ore -theretirem entbenefitthe employee wasqualified to receive had the em ployee elected to retire atthe tim e of hisdeath. Ifthere isno surviving spouse,the benefitsshallbe allocated asstipulated in (d)(1)above. (e) Deferred Benefits-The System providesfordeferred benefitsforvested memberswho terminate before being eligible for retirem ent. O nce the m em ber reaches the appropriate age for retirem ent,benefitsbecom e payable. (f) PerArticle 10,Section 29(b)of the Constitution ofthe State oflouisiana,the State oflouisiana guaranteesbenefitpaym entsto the retireesof a state retirem entsystem orhisbeneficiary upon hisdeath. (g).drop Program A ny active rnem ber w ho is eligible to receive a service retirem ent allow ance is eligible to participate in the Deferred RetirementOption Plan (DROP)and deferreceiptofbenefits. This program w ascreated by A ctiiof The participantperiod shallnotexceed three years. D uring the drop participation period,an am ountequalto whatw ould be received asa m onthly retirem entbenefitisaccum ulated in an individualaccount. The participantcontinuesto receive a regular earned salary w hile em ployed. U pon term ination of em ploym entatthe end ofth e D RO P participation period,a participantw illreceive,athisoption;a lum p sum paym entequal to accrued paym ents to his D RO P account;a true annuity based on his accountor any other m ethod approved by the board.u pon com pletion of D R O P period regardless of em ploym cnt status,the m em ber's individuald ROP accountshallearn interestatthe rate of one-halfofa percentage pointbelow the rate of return of the System 's investm entportfolio. N ote 2-Sum m ary of SignificantA ccounting Policies Basisof A ccounting A. Reporting Enlil~ Section 2100 of the G A SB Codification of G overnm enta l A ccounting and Financial Reporting Standards(GASB Codification)established criteriafordeterm ining thegovernm entalreporting entity and com ponentunitsthatshould be included w ithin the reporting entity. O versightresponsibility by the System isdeterm ined on the basisof th e accountability forfiscalm attersunderthe controlof the board of directors.

10 Louisiana State Police R etirem entsystem N otes to FinancialStatem ents June 30,1997 Note 2-Sum m ary ofsignificantaccounting Policies(Continued) BasisofAccounting (Continued) A. Reporting Enti.t)!(Cont inued) Because the operations of the System are funded by the State of I.xm isiana, the System w as determ ined to be a com ponentunitof the State of Louisiana. The accom panying financialstatem ents presentinform ation only on the System and do notpresentinform ation on the generalgovernm ent servicesprovided by the State of Louisiana,orth e othergovernm enta lunitsthatcom prise the State of Louisiana's entity. In determ ining financial accountability for legally separate organizations,the System considered whetheritsofficialsappointavoting majority ofan organization'sgoverning body and whethereither they are able to im pose theirw illon thatorganization orthere isa potent ialforthe organization to provide specific financialburdensto,orto im pose specific financialburdenson,the System. The System also determ ined w hetherth ere are organizationsthatare fiscally dependenton it. There are no com ponentuni tsof the System. The System uses the accrualbasis of accounting. W ithin this context,revenue and expenditure recognition is as follow s: Interestincom e isrecognized in the period itisearned. D ividendsare recognized in the period the),are declared Em ployer and em ployee contributions are recognized in the period that the em ployee is com pensated forservicesperform ed. G ainsand losseson security transactionsare recognized in the period of the sale orm aturity of the investm ents. Benefitsand refundspaid are recognized in the period they are allocated A srequired by G A SB 25,FinancialReporting ford efined BenefitPension Plansand N ote D isclosure ford efined C ontribution Plans,investm entsare reported atfairvalue. Fairvalue isdeterm ined by the lastreported salesprice. Besitdesinvestm entsin the U.S.G overnm ent and U.S.G overnm entobligations,th e system hasnot had investm entsrepresent ing m ore than five percentof the netassetsavailable forbenefits. Furn iture,fixturesand equipm entare stated atcostand are being depreciated on the straight-line basis over their estim ated usefullives. The estim ated usefullives range from 3 to 10 years. B. Estim ates The preparation of financialstatem ents in conform ity w ith generally accepted accounting principles requiresm anagem entto m ake estim atesand assum ptions thataffectthe reported am ountsof assets and liabilities and disclosure of contingentassets and liabilitiesatthe date of th e financialstatem ents and th e reported am ountsof revenue and expens esduring the reporting period. A ctualresultscould differ from those estim ates.

11 Louisiana State Police R etirem entsystem N otes to FinancialStatem ents June 30,1997 Note 2-Sum m ary ofsignificantaccounting Policies(Continued) In N ovem ber 1994,G A SB issued Statem entn o.25,financialreporting fi)rd efined BenefitPension Plans and N ote D isclosures for D efined Contribution Plans. This Statem entestablished financial reporting standards for defined-benefitpension plans. G A SB encouraged early application of the Statem ent,w hich the Plan elected to do. Tire Statem entrequires the Plan to restate the financial statem entsof allix;riodspresented. A llprioryears'effectsresulting from thissta tem entare reported as a restatem entof the "N etassets held in trustfor pension benefits-beginning of year"for the earliest period restated. The netassetsheld in trustforpension benefits-beginning of yearforfiscalyear 1996,which was$91,337,408,wasrestated as$98,328,488 in orderto reflectapplication ofgasb Sta tem entn o.25. N ote 3-C ontributions Currently,the law setstire em ployee contribution rate at8.0 percentof earned com pe nsation forstate police em ployees. The agency paysthe em ployer contribution rate determ ined each yearbased on an actuarialform ula setby state law. The em ployercontribution includesan am ountdesigned to pay a pdrtion of State Police Retirem ents'unfunded accrued liability. The unfunded accrued liability is scheduled to be paid in fullby the year Costof adm inistering the System is financed by generalassets of the System. A ct165 of the 1992 Legislative Session providesth atthe U nfunded ActuarialLiability in accordance with the Projected UnitCreditcostmethod on June 30,1988 shallcontinue to be amortized overa 20 year period as a leveldollar am ount. N ew changes in actuarialm ethods or assum ptions arc am ortized overthe laterof the year2029 ortire anaortization period stated in the Louisiana Revised Statutes. N ote 4-C ash,c ash Equivalents and Investm ents In accordance w ith LRS 42:717,Louisiana'spe nsion system sare to investin accordance w ith the prudent-m an rule. A sused in this statute,the ru le m eans th atth e system s "...shallexercise the judgmentand care underthe circumstancesthen prevailing thatan institutionalinvestorofordinary prudence,discretion,and intelligence exercisesin the m anagem entof large investm entsentrusted to it not in regard to speculation but in regard to the perm anentdisposition of funds,considering probable safety of capitalaswellasprobable incom e." N otw ithstanding the prudent-m an ru le,no governing authority of any system shallinvestm ore than sixty-five percam tof the totalportfolio in equities.

12 Louisiana State Police R etirem entsystem N otes to FinancialStatem ents June 30,1997 Note 4-Cash,Cash Equivalentsand Investm ents(continued) June Investm entin U,S, Treasury M oney M arketfund Total Carrying Am ounton Balance Sheet Bank Balances: a) Insured orcolateralized with securitiesheld by the entity oritsagentin the entity'snam e $400,000 $25,082,149 $25,482,149 b) Collateralized with securitiesheld by pledging financialinstitution'strustdepartm entoragent in the entity'sn.am.~ c) Uncollateralized,including any securitiesheld forthe entity butnotin the entity'snam e A llof the am ountsin (c)above were uncollate~alized securitiesasof June 30,1997 June Investm entin U.S Treas ury M oney C arrying A m ounton Balance Sheet Bank Balances: a) Insured orcolateralized with securitiesheld by the entity oritsagentin the entity'snam e 540,000 9,948,357 10,488,357 b) Collateralized with securitiesheld by pledging financialinstitution'strustdepartm entoragent in the entity's~2iij.~. c) Uncollateralized,including any securitiesheld forthe entity but 1.9_1 n the entitv'~nam e Allofthe am ountsin (c:)above were uncollateralized securitiesasofjune 30,1996

13 Louisiana State Police R etirem entsystem N otes to FinancialStatem ents June 30,1997 Note 4-Cash,Cash Equivalentsand Investm ents (Continued) A schedule of investm ents isshow n below w hich classifiesthe investm entsaccording to the levelof risk to the entity. D efinitionsof the risk categoriesare asfollow s: Category 1 -Insured or registered in the entity'snam e,or securitiesheld by the entity or itsagent in the entity's nam e. C.ategory 2 -U ninsured and unregistered w ith securitiesheld by the counterparty'strustdepartm ent oragentin the entity's nam e. Category 3 - U nsecured and unregistered w ith securities held by the counterparty,orby its trust departm entor agentbutnotin the entity'snam e. Type of Investm ent U.S.G overnm entobligations U.S.G overnm entagency obligations C om m on stocks-dom estic Com m on stocks-foreign Bonds-dom estic Bonds-foreign Type of Investm ent U.S.G overnm entobligations U.S.G overnm entagency obligations Com m on stocks-dom estic Com m on stocks-foreign Bonds-dom estic Category of Risk 1 2 $21,029,462 17,993,492 60,488,510 5,710,857 _ ~., TotalC arrying A m ount atfair V alue $21,029,462 17,993,492 60,488,510 5,710, N ote 5-C om pensation of Board M em bers N o com pensation ispaid by the System to itsboard m em bers

14

15 Supplem entalinform ation

16 Louisiana State Police Retirem entsystem Supplem entalinform ation Schedule of Em ployer Contributions (Dollar Am ountsin Thousands) Y ear Ended June AnnuaLRg~uired ~ at~ua tion $18,851 17,419 PA rcentag~ Contributed :118.6% 116.4% , % , % , % , % , %

17 Louisiana State Police R etirem entsystem Schedule of Funding Progress June 30 (Dollar Am ounts in Thousands) A ctuarial V aluation D at~.._ A ctuarial A ctuarial Accrued Value of Liability (AA L) Assets Entry A ge _ (a)_~ ~ ). U nfunded (Overfunded) A AL (UAAL) Funded Ratio (b -a) (a/b) U A AL as Annual a Percentage C overed of Covered PayroH Payroll (~) (b-a/c)._ 1988 $8,754 $195,144 $186, % $16, q, , , , % 16, f, , , , % 18, ~ , , , % 19, N ,5]6 230, , % 19, c/, , , , % 18, ')~ , , , % 18, ~A , , , % 22, ~ , , , % 24, ~ , , , % 27, ~

18 Louisiana State Police R etirem entsystem N otesto the Schedulesof Trend D ata The inform ation presented in the required supplem entalschedulesw asdeterm ined aspartof the acluaria valuations atthe dales indicated. Additionalinform ation asof the actuarialvaluation dated June follow s: V aluation date A ctu arialcostm ethod A m ortization m ethod Rem aining am ortization period A ssetvaluation m ethod June Entry A ge LevelD ollar 33 Y ears Bonds are valued at am ortized cost. For the Plan Year ending June 30, 1997 equities are valued at a four year w eighted average. The com putation of the actu arial value of assets is the sum of the bonds atam ortized cost,less a weighted average ofunrealized lossesor(gains) in the m arketvalue of equities,plus the m arket value of equities. This value is determ ined in accordance w ith Reg.l.412(c)(2)-l-(6)& (7) of theinternalrevenueservicecodeand issubject 1o the C orridorlim itsdefined therein. A ctuarialassum ptions Investm entrate of return 7.5 % Projected salary increases 4% -6.7% Costofliving adjustments None

19 HAW THO RN,W AYMOUTH ~ CARRO LL, L.L.P. H DANIEL CARROLL,C PA ROBERT [ W &LES,C ~ /~. CARL [ HAN(~OCK,C PA J CHARLES PARKEa,C # A LOUIS C M cknigi43,ul,c r4a AN]HONY J (3RISTINA Il,0 PA CHARLES R F'EVEy,JR.,C F~A DAV;O J BROUSSARD,C ~qa CERTIFIED Pt.)E3LIC ACCOLIN TAN TS 8555 LINITED I'[.AZA BLVD, BATON ROUGE,LOUISIANA 70BOB [504) ~F/~X [504)923-BDO8 Septem ber20,1997 ROBER] E~ I-tAW ll4()rn [ /I JOHN F W AYM OLIZH [ [ HOW AR[)V CARf~()L{ ( r St31 R eporton C om pliance and on InternalControlover FinancialR eporting Based on an A uditof FinancialSt,'ttem ents Perform ed in A ccordance w ith G overnm enta uditin~ Standard~, Board of T rustees Louisiana State Police Retirem entsystem Baton Rouge,Lo uisiana M em bersof the Board W e have audited the com ponentunitfinancialstatem entsof the Louisiana State Police R etirem entsystem B aton R ouge,louisiana as of and for the year ended June 30,1997,and have issued our reportthereon dated Septem ber W e conducted our audit in accordance w ith generally accepted auditing standards and the standards applicable to financialaudits conta ined in G overnm enta uditing Sta ndards,issued by d~c C om ptroller G eneralof the U nited Sta tes. A spart of obtaining reasonable assurance aboutw hetherlouisiana Sta te Police Retirem entsystem 's f'm ancialstatem entsare free of m aterialm isstaternent,we perform ed tests of itscom pliance w ith certain provisions of law s,regulations,contracts and grants,noncom pliance w ith which could have a directand m aterialefecton the determ ination of fina ncialstatem entanaounts. H owever,providing an opinion on compliance with those provisionswasnotan objectiveofourauditand,accordingly,we do notexpress such an opinion. The results of our testsdisclosed the follow ing insta nce of noncom pliance th atis required to be reported under.govcrnmerltauditing Standards A sindicated in N ote 4 to th e f'm ancialstatem ents,th e System hasbank depositbalancesw hich are unco llateralized. Louisiana state law requiresthe System have adequate collateral.

20 nlernal~ nntrolo ver FinancialRenortin~ In planning and pe rform ing ouraudit,w e considered Louisiana State Police Retirem entsystem 's internalcontroloverfin ancialreporting in orderto determ ine ourauditing proceduresforthe purpose of expressing our opinion on the fm ancialstatem entsand notto provide assurance on the internalcontrol over fina ncialreporting. O ur consideration of the internalcontrolover financialreporting w ould not necessarily disclose allm atters in the internalcontrolover financialreporting thatm ightbe m aterial w eaknesses. A m aterialweakness isa condition in w hich th e design oroperation of one orm ore ofthe internalcontrolcom ponents does notreduce to a relatively low levelthe risk thatm isstatem ents in am ounts th atw ould be m aterialin relation to the fina ncialstatem entsbeing audited m ay occurand not be detected w ithin a tim ely period by em ployees in the norm alcourse of perform ing theirassigned functions. W e noted no m atersinvolving th e intern alcontroloverfina ncialreporting and itsoperation thatw e considerto be m aterialw eaknesses. T his reportin intended for the use of the Board of Trustees,the State of Louisiana D ivision of A dm inistration,the O ffice:of the Legislative Auditor of the State of Louisiana,and m anagem ent. H ow ever,this reportisa m atterof public record and itsdistribution isnotlim ited. Y ourstru ly 20