TereboneParishSalesandUseTaxDepartment Houma,Louisiana December31,198

Transcription

1 FinancialReport TereboneParishSalesandUseTaxDepartment Houma,Louisiana December31,198 Underprevisionso~s~.atelaw,this repoltisapubicdocument.a copyofthereporthasbensubmittedtotheaudited,oreviewed, entityandotherapropriatepublic oficials.the~eportis~;vaitablerot publicinspectionathebaton R()ugeoficeofthe!.egislati~,eAuditorand,whereapropri~,le,athe oficeoflheparishclerkofcourt,

2 TABLEOFCONTENTS TereboneParishSalesandUseTaxDepartment December31,198 ]~;xhibilsnumber Page lntrodnctorysection TitlePage TableofContents FinancialSection IndependentAuditor'sReport 1-2 CombinedBalanceShet-AlFundTypesandAcountGroups A 3-4 StatementofP.cvenues,ExpendituresandChangesinFundBalance- BudgetandActual-GovernmentalFundType-GeneralFund B 5 NotestoFinancialSlatemcnts C 6-15 Schedule SuplementarylntbrmationSection ScheduleofOtherServicesandCharges ScheduleofCashReceiptsandDisbursements- ParishSalesTaxFund

3 TABLEOFCONTENTS (Continued) TereboneParishSalesandUseTaxDepartment December31,198 SpecialReportsOfCertifiedPublicAcountants ReportonComplianceandonInternalControlOverFinancial RcporlingBasedonanAuditofGeneral-PurposeFinancial StatementsPerformedinAcordancewithGovernment AuditingStandards ScheduleofFindings ReportsByManagement ScheduleofPriorYearFindings Managcment'sCorectiveActionPlan Page Number

4 BourgeoisBenet NDEPENDENTAUDITOR'SREPORT TotheSalesandUseTaxAdvisoryBoard, TereboneParishSalesandUseTaxDepartment, ltouma,louisiana. l'arishsales',andusetaxdepartment(thedepartment),acomponentunitofthetereboneparish Wehaveauditedtheacompanyingeneral-purposefinancialstatementsoftheTerebonc ConsolidatedGovernment,StateofLouisiana,asofandfortheyearendedDecember31,198,as listedinthetableofcontents.thesegeneral-purposefinancialstatementsaretheresponsibilityofthe Deparhnent'smanagement.Ouresponsibilityistoexpresanopiniononthesegeneral-purpose financialstatementsbasedonouraudit. standardsaplicabletofinancialauditscontainedingovernmentauditingstandards,isuedbythe Weconductedourauditinacordancewithgeneralyaceptedauditingstandardsandthe ComptrolerGeneraloftheUnitedStates.Thosestandardsrequirethatweplanandperformtheaudit tobtainreasonableasuranceaboutwhetherthefinancialstatementsarefreofmaterialmistatemerit.anauditincludesexamining,onatestbasis,evidencesuportingtheamountsandisclosures inthefinancialstatements.anauditalsoincludesasesingtheacountingprinciplesusedand significante:stimatesmadebymanagement,aswelasevaluatingtheoveralfinancialstatement presentation.webelievethatourauditprovidesareasonablebasisforouropinion. almaterialrespects,thefinancialpositionofthetereboneparishsalesanduse"faxdepartment asofdecember31,198,andtheresultsofitsoperationsfortheyearthenendedinconformitywith Inouropinion,thegeneral-purposefinancialstatementsreferedtoabovepresentfairly,in generalyaceptedacountingprinciples. February24,19onourconsiderationoftheTereboneParishSalesandUseTaxI)epartment's InacordancewithGovernmentAuditingStandards,wehavealsoisuedoureportdated internalcontroloverfinancialreportingandourtestsofitscompliancewithcertainprovisionsoflaws, regulations,contractsandgrants. 134(IWcsl"1ulmelBlvd.Suite430 P.O.Box2168 ]1o1~.I,A PhOlC(50~) Celtifedl'ulflic }~Jx(504) AI,imiledI,iabililyCompa.y AcountantsIConsultants P.O.Box6060 NewOflea,s,LA leritageplaza,suile80 'hone(504) WeslSecondSlicer l'.o.box1205 lax(504) hibodanx.I.A703( Phole(504)4%5243

5 cialstatementsoftereboneparishsalesandusetaxdepartmentakenasawhole.theacom- panyingfinancialinformationlistedilthetableofconlentsasschedule1and2ispresentedfor Ourauditwasperformedforthepurposeoforminganopiniononthegeneral-purposefinan- purposesofaditionalanalysisandisnotarequiredpartofthegeneral-purposefinancialstatements. ]ounla,la., February24,19 CertifiedPublicAcountants

6 COMBINEDBALANCESItET- ALFUNDTYPESANDACOUNTGROUI'S TereboneParishSalesandUseTaxDepartmeni December31,198 AsetsASETSANDOTltERDEBITS Cash Taxesreceivable Duefi-omagencyfund Duefiomothergovernmentalunits Fixedasets OtherDebiCs Amountobeprovidedforetirementof long-termobligations Totalasetsandotherdebits L1ABIJTIESANDOTItERCREDITS Liabilities Acountspayableandacruedexpenditm'es Duetogeneralfund Due1othergovenmlentalunits: TeneboneParishScholBoard TereboneParishConsolidatedGovernment TereboneParishSherif Houma-TeneboneTouristComision l~ong-tenobligations Totaliabilities OtherCredits Investmentingeneralfixedasets Totaliabilitiesandothercredits Seholeslofinancialslalcments Governmental FundType General $6,059 14,252 $20,31 Fiducialy FundType Agency $4,75,782 6,041, $10,798,084 $19,109 $ 1,202 20,31 $20,31 1,820 14,252 5,295,947 4,205,547 1,262,152 18,36 10,798,084 $10,798,084

7 ExhibitA General AcountGroups Fixed Asets Ọbligations l,ong-ten General (Memorandum Total Only) ,217 21,217 $14:.25 $21,217 $10,953,867 20,929 14,252 5,295,947 4,206,749 1,262,152 21,217 18,36 21,217 21,217 10,839,612 $14,25 $14,25 $21,217 $10,953,867 14,25 4

8 STATEMENTOFREVENUES~EXPENDITURESANDCltANGES INFUNDBALANCE-BUDGETANDACTUAL- GOVERNMENTALFUNDTYPE-GENERALFUND TereboneParishSalesandUseTaxDepartment Revenues Taxes-salesanduse Chargesforservices Licenses Miscelaneous: lnlerest Olher Totalrevenues Expenditures Curent: FortheyearendedDecember31,198 GeneralGovermnent: ]~ersonalservices Supliesandmaterials Otherservicesandcharges Repairsandmaintenance Capitalexpenditures Totalexpenditures ExcesofRevenues OverExpenditures FundBalance Begitmingofyear Endofyem ~ceholesiofinaucialstatenlenls Budsel $592,62 24,760 12,0 2, , ,827 Actual $592,51 24,757 12,0 2, , ,017 43, ,258 9,207 13,48 651, $-0- Variance Favorable (Unfavorable) 7 2,746) ,752 81

9 ExhibitC NOTESTOFINANCIAl,STATEMENTS TereboneParishSalesandUseTaxDepartment December31,198 Note1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES TheTereboneParishSalesandUseTaxDepartmentwascreatedOctober14,1964,in compliancewithact50of1964,ofthestateoflouisiana.thesalesandusetax Dcparhnentadministersthecolectionandistributionoftheaproved4.25%salestax, hotel/moteltaxandocupationalicenses. Taxcolections,afterdeductingoperatingexpenses,aredistributedinthemonthfolowing receipt.thefirstlevyof1%madein1964isdividedbetwenthetereboneparishschol Board,whichreceives3%,andtheTereboneParishConsolidatedGovernment,which receives67%.thesecondlevyof1%madein1976isdividedbetwenthetercbonc ParishScholBoard,whichreceives75%,andtheTercboncParishConsolidated Govermncnt,whichreceives25%.The1/4%levyefectiveJanuary1,1987isremitedto theterebonucparishlawenforcementdistrict.thetwo1/4%leviesefectivejanuary 1,193isremitedtotheTereboneParishConsolidatedGovernmentwith1/4%dedicated todrainageand1/4%dedicatedtoroadsandbridges.the1%levyefectivejuly1,196 isremitedtothetereboneparishscholboard.the1/4%levyefectiveoctober1,197 isremitedtothetereboneparishlawenforcementdistrict.aditionaly,a1/4%levy becamefectivejuly1,198whichisremitedtothetcrcbonueparishconsolidated Gow~rnmentwhichisdedicatedtotheLibrarySystem,Theltotel/Moteltaxof3%is remitedsolelytothehouma-terebonetouristcomision. TheacountingpoliciesoftheTereboneParishSalesandUseTaxl)epartment(the l)epartmcnt)conformtogeneralyaceptedacountingprinciples(gai')asapliedto governmentalunits.thegovernmentalacountingstandardsboard(gasb)isthe aceptedstandardsetingbodyforestablishingovernmentalacountingandfinancial reportingprinciples.thefolowingisasumaryofsignificantacountingpolicies: a)reportingentity "l'hedepartmentisacomponentunitofthetereboneparishconsolidatedgovernment (theparish)andasuch,thesefinancialstatementswilbeincludedinthecomprehensive anualfinancialreport(cafr)oftheparishfortheyearended1)ecember31,198.

10 (Continued) ExhibitC Note1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Confirmed) a)reportingentity(continued) Thel)epartmenthasreviewcdalofitsactivitiesandeterminedthathereareno potentialcomponentunitswhichshouldbeincludedinitsfinancialstatements. b)fndacounting The1)epartmentusesfundsandacountgroupstoreportonitsfinancialpositionandthe resultsofitsoperations.fundacountingisdesignedtodemonstratelegalcompliance andtoaidfinancialmanagementbysegregatingtransactionsrelatedtocertain governmentfunctionsoractivities. Afundisaseparateacountingentitywithaself-balancingsetofacounts.Anacount group,ontheotherhand,isafinancialreportingdevicedesignedtoprovide acountabilityforcertainasctsandliabilitiesthatarenotrecordedinthefundsbecause theydonotdirectlyafectnetexpendableavailablefinancialresources. l'hcl)cl)artmcnthasthefolowingfundtypesandacountgroups GovcrnmenlalFunds GovernmentalFundsarethosethroughwhichthegovernmentalfunctionsofthe Departmentarefinanced.Theacquisition,useandbalancesofthel)cpartment's expendablefinancialresourcesandtherelatedliabilitiesareacountedforthrough GovernmentalFunds."]'hemeasurementfocusisupondeterminationofchangesin financialposition,ratherthanuponetincomedetermination.thefolowingisthe GovernmentalFundoftheDepartment: GeneralFnd-TheGeneralFundisthegeneraloperatingfundofthe l)epartmcnt.itisusedtoacountforalfinancialresourcesexcepthosethatare rcquiredtobeacountedforinanotherfund. FiduciaryFunds FiduciaryFundsacountforasetsheldbytheDepartmentinatrustecapacityoras anagentonbehalfofothers."]'hefolowingisthel:iduciaryfundofthel)cpartmcnl:

11 (Continued) Noic1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) b)fundacounting(continued) AgencyFund-AnAgencyFundiscustodialinaturcandoesnotpresent resultsofoperationsorhaveameasurementfocus.agencyfundsarcacounted forinesentialythesamemanerasgovernmentalfunds.thisfundisused1o acountforasetsthathedepartmentholdsforothersinanagencycapacity. AcountGroups Acountgroupsareusedtoestablishacountingcontrolandacountability.Thc ])cparlment'sacountgroupsarcasfolows: GeneralFixedAsetsAcountGroup-Thisacountgroupisusedtoacount tbrfxedasetsnotacountcdforinproprietaryortrustfunds. GeneralLong-TermObligationsAcountGroup-Thisacountgroupisused toacountforgeneralong-termobligationsandcertainotherliabilitiesthatarc notspecificliabilitiesofproprietaryortrustfunds. e)basisofacounting Basisofacountingreferstowhenrevenuesandexpendituresarerecognizedinthe acountsandreportedinthefinancialstatements.basisofacountingrelatcstothe Li_m_h~ofthemeasurementsmade,regardlesofthemeasurementfocusaplied. AlGovernmentalFundsandAgencyFundsareacountedforusingthemodifiedacrual basisofacounting.theirevenuesarerecognizedwhentheybecomemeasurableand availableasnetcurentasets.salestaxesarconsidered"measurable"wheninthe handsofthemerchantsandarerecognizedasrevenueathatime.licensesandpermits, finesandforfeituresandmiscelaneousrevenuesarerecordedasrevenueswhenreceived incashbythedepartmentbecausetheyaregencralynotlneasurableuntilactualy received. Expendituresaregeneralyrecognizedunderthemodifiedacrualbasisofacounting whentherelatedfundliabilityisincured.anexceptiontothisgeneralruleistheaccumulatedunpaidvacation,sickpayandotheremployeamountswhicharcrecognized whentheobligationsarexpectedtobeliquidatedwithexpendableavailablefinancial resources.

12 (Continued) ExhibitC Note1-SUM[MARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) ti)useofesti~ates Thepreparationofinancialstatementsinconformitywithgeneralyaceptedacounting principlesrequiresmanagementomakestimatesandasumptionsthatafectcertain reportedamountsandisclosures.acordingly,actualresultscouldiferfi'omthose estimates. e)operatingbudgetarydata TileDepartmentestablishesthebudgetarydatareflectedinthefinancialstatementsas folows: TheDirectorsubmitstothemembersoftheSalesandUseTaxAdvisoryBoarda proposedoperatingbudgetfortheyearcomencingthefolowingjanuary1.thepublic hearingsandadvertisements,whicharerequiredbystatelaw,areconductedpriorto aprovalbytheadvisoryboard.thebudgetisthensubmitedtotheparishcouncilfor e~actr~en~by~rdina~e.a~actionsnecesarytoad~ptand~therwisef~a~zea~d implementlhebudgetforanensuingyeararetakenpriortothendoftheyearin progres.anyamendmentinvolvingthetransferofmoniesfromonedepartment1o anotherorfromoneprogramorfunctiontoanotheroranyotherincreasesinexpendituresexcedingamountsestimatedmustbeaprovedbytheparishcouncil.thebudget wasamendedonetimefor198.albudgetedamountswhicharenotexpended,or obligatedthroughcontracts,lapseatyeareld.thebudgetforthegeneralfundis adoptedonabasismaterialyconsistentwil lgeneralyaceptedacountingprinciples. f)acountsreceivable ThefinancialstatementsoftheDepartmentcontainoalowanceforuncolectible acounts.uncolectibleamountsducforeceivablesarerecognizedasbadebtsatihc timeinlbrmationbecomesavailablewhichwouldindicatetheuncolcetibilityoftile particulareceivable.theseamountsarenotconsideredtobematerialinrelationtothe financialpositionoroperationofthegeneralfund. g)fixedasets Fixedasetsusedingovernmentalfundtypeoperations(fixedasets)areacountedtbr inthegeneralfixedasetsacountgroup,ralhcrthaningovernmentalfimds.

13 (Continued) ExhibitC Note1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) g)fixedasets(continued) "l'heaecoumgroupisnotafund.itisonlyconcernedwiththemeasurementofinancial position.itisnolinvolvedwiththemeasurementofresulsofoperations,l'ublic dolnain("infrastructure")fixedasetsconsistingofcertainimprovenwmsotherthan buildings,includingroads,bridges,curbsandguters,stretsandsidewalks,drainage systemsandlightingsystems,arenotcapitalizedalongwithotherfixedasets.no depreciationhasbenprovidedonfixedasets. Alfixedasetsarevaluedathistoricalcost. h)long-termobligations 'l'heacountingandreportingtreatmentapliedtothelong-termobligationsasociated withafiredisdeterminedbyitsmeasurementfocus.algovernmentalfundsare acountedforonaspendingor"financialflow"measurementfocus.thismeansthat onlycurentasetsandcurentliabilitiesaregeneralyincludedontheirbalanceshets. Theireportedfundbalance(netcurentasets)isconsideredameasureof"available spendableresources".governmentalfundoperatingstatementspresenlincreases (revenuesandotherfinancingsources)andecreases(expendituresandotherfinancing uses)inetcurentasets.acordingly,theyaresaidtopresentasumaryofsources andusesof"availablespendableresources"duringaperiod. Long-termobligalionsexpectedtobefinancedfromGovernmentalFundsareacounted forinthegeneral,ong-termobligationsacountgroup,notinthegovernmental Funds. Thel.ong-TenObligationsAcountGroupisnota"fund".Itisconcernedonlywith tilemeasurementofinancialposition.itisnotinvolvedwiththemeasurementofresults ofoperations. i)vacationandsickleave Acumulatedvacationandsickleavearerecordedasanexpenditureoftheperiodin whichpaid.

14 Note1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) i)vacationandsickleave(continued) EnaploycesoftheDepartmentcanearntwelveorseventendaysperyearvacationleave dependingontheirlengthofemployment. Alemployesarerequiredtotakevacationwithinoneyearofbeingeamcd,withno canyforwardprovisions.ifanemployefailstotakevacationleave,themploye lbrfeitsthistimeforthisparticularyear,howeverthistimeisheldforetirement purposes.intheventhemployeisterminatedoresigns,alvacationleavcnotlost throughforfeiturewilbepaidtothem. Employesofthel)epartmentearnsevendaysickleaveperyearandarcpermitedto acumulateamaximumof60days.[jponretirement,anemployeispaiduptonehalf ofacumulatedsickleavetoamaximumof30days.acumulatedsickleaveinexces of30daysareusedinthecomputationoflnonthlyretirementbenefitsintheparochial Employes'RetirementSystem. j)fneumbranes Encumbranceacounting,underwhichpurchaseorders,contractsandothercomitmcntsarcrecordedinthefundgeneraledgers,isnotutilizedbytheDepartment. k)memorandumonly-tolalcolumns Thetotalcolumnsonthcgeneral-purposefinancialstatementsarecaptioned"MemorandumOnly"becausetheydonotrepresentconsolidatedfinancialinformationandare presentedonlytofacilitatefinancialanalysis.thecolumnsdonotpresentinformation hatreflectsfinancialpositionoresultsofoperationsinacordancewithgeneraly aceptedacountingprinciples,lntcrfundeliminationshavenotbcnmadeinthe agregationofthisdata. Note2-i)EPOSITS l~ouisianastatelawalowsalpoliticalsubdivisionstoinvestexcesfundsinobligationsof the[jnitcdslates,certificatesofdepositofstateo1"nationalbankshavingtheirprincipal oficeinlouisianaoranyotherfederalyinsuredinvestment.

15 (Continued) ExhibitC Note2-1)EPOSITS(Continued) Slatelawalsorequiresthatdepositsofalpoliticalsubdivisionsbefiflycolatcralizcdatal times.aceptablecolateralizationincludesfi)icinsuranceandthemarketvalueof securitiespurchasedandpledgedtothcpoliticalsubdivision.obligationsoftheunited Slalcs,theStateofI,ouisianandcerlainpoliticalsubdivisionsarcalowedasecurityfor deposits.obligationsfurnishedasecuritymustbcheldbythepoliticalsubdivisionorwith anunafiliatedbankortrustcompanyfortheacountofthepoliticalsubdivision. Cashandepositsarcategorizedintothrecategoriesofcreditrisk Category1includesdepositscoveredbyfederaldepositoryinsuranceorbycolatcra heldbythedepartmentoritsagentinthedcpa~ament'sname. Category2includesdepositscovcrcdbycolateralheldbythcpledgingfinancia institution'strustdepartmentoritsagentinthedepartment'suame. Category3includesdepositscoveredbycolateralheldbythepledgingfinancial institutionoritstrustdepartmentoragentsbutnotinthel)cpar/naent'snameand dcpositswhichareuninsuredoruncolateralizcd. The3,earendbankbalancesofdepositsandthecaryingamountsashownonthecombined balanceshetarcasfolows: BankBalancs Category Balanc Bok Cash $4~761,841 AtDecember31,198,cashinexcesoftheFDICinsurm~cewascolatcralizcdbysecuritie';heldbyanunafiliatedbankfortheacountoftheDepartment.TheGovernlnenlal AcountingStandardsBoard(GASB),whichpromulgatesthestandardsforacountingand financialreportingforstateandlocalgovernments,considersthesescuritiesuncolatcralized.1:,vcnthoughthepledgedsecuritiesarconsidereduncolatcralizedundertheprovisions ofgasbstatement3,louisianarevisedstatute39:129imposesastatutoryrequirement onthecustodialbanktoadvertiseandselthepledgedsecuriticswithin10daysofbeing nolifiedbythcdepositorthathefiscalagcnthasfailedtopaydcpositcdfundsupondcmand. 12

16 (Contim,cd) ExhibitC Note3-CHANGESINFIXEDASETS Asumaryofchangesinfixedasetsfolows Balance January 1,198AditionsAc[iustments31,198 December Balance Furnitureandfixtures$13,42$13,48$(12,~ $14,25 Aphysicalinventoryofurnitureandfixtureswithistoricalcostinexcesof$50resulted inanadjustmentothegeneralfixedasetgroupintheamountof$12,615. Note4-LONG-TERMOBLIGATIONS TheI)cpartment'scomitmentofndacumulatedunpaidvacationandsickleavefrom futureoperationshasbenrecordedinthegeneral1.ong-termobligationacountgroup atdecember31,198. Thefolowingisasulnmaryofchangesinthelong-termobligationoftheDepamnentfor the:yearended1)ecember31,198: Payable January Net L198 (I)ecreasc) Increase/ Acumulatedvacation Acumulatedsickleave $9,927 $0,4o) December Payable 31,198 Totals (671) $8,527 12,690 $23,28_ $(2,07U.$21,217 Note5-DEFINE1)BENEFITPENSIONPLAN PhmDescription-Thel)epartmentcontributestoPlanBoftheParochial';mployes' RetirementSystemofI,ouisiana(theSystem),acost-sharingmultiple-employerdefined benefitpublicemployerctirclncntsystem(pers),whichiscontroledandadministeredby aseparateboardoftrustes.thesystemprovidesretirement,deferedandisability benefits,survivor'sbenefitsandcostoflivingadjusmwntstoplanmembersand beneficiaries.act205ofthe1952louisianalegislativesesionestablishedtheplan.the 13

17 ExhibitC Note5-I)EFINEI)BENEFITPENSIONPLAN(Continued) systemisgovernedbylouisianarevisedstatutes1:19010wough1:2015,specificaly, andothergeneralawsofthestateofi.ouisiana.thesystemisuesapubliclyavailable fil~ancialreporthatincludesfinancialstatementsandrequiredsuplementaryinformation forthesystem.thereportmaybeobtainedbywritingtoparochialemployes'rctiremenl SystemofIJouisiana,P.O.Box14619,BatonRouge,Louisiana FundingPolicy-Planmembersarerequiredtocontribute2%oftheiranualcoveredsalary les$10permonthandthedepartmentisrequiredtocontributeatanactuarialy delermincdrate.thecurentrateis2.5%ofanualpayrol.inadition,thesystemalso receivesapcrcentageoftaxrevenuesfromvarioustaxingbodies.thecontribution requirementsofplanmembersandthedepartmentarestablishedandmaybeamendedby statestatute.thedeparlment'scontributionstothesystemfortileyearsendingl)ember 31,198,197and196were$5,172,$5,768and$2,370,respectively,equaltothe requiredcontributionsforeachyear. Note6-I'OSTRETIREMENTltOSPITALIZATIONANDLIFEINSURANCEIENEFITS TheDepamncntprovidedforthepaymentofhospitalizationandlifeinsurancepremiums fortworetiredemployesuntiljantmry198,thenonethroughdclnber31,198as aprovedbythetereboneparishcouncil.thedepartmentwilfiredthentirepremium retirementsystems.aretiredemployemayprovidedependenthospitalizationcoverageat foralemployesretiringwithatleastenyearsofserviceoretir-ingfromtheforlnal acostrangingfrom$40to$4permonthdependingontheiretirementdate.thecostof providingthescbenefitsisrecognizedasanexpenditureinthegeneralfundaspremiums arepaid.fortheyearendeddecember31,19g,thiscostwasaproximately$6,132. FutureliabilitiesundertheDepartment'splanforpotentialyeligiblemploycsarc dependentupontheageandlengthofserviceofthosemployes.theaveragemployc ageandserviceyearsarcnotavailable.atdecember31,198,theaveragehospilalization andlifeinsurancecostsperetiredemployewasaproximately$471permonth. Note7-COMPENSATIONOFADVISORYBOARD Thel)cpartmentdidnotpayperdiemtoanyofitsBoardMembersil198

18 (Continued) ExhibilC Note8-LEASECOMITMENTS In192tileDepartmententeredintoaleasefortherentalofoficespaceforalernlofthre years,i)uring195,theleasewasextendedforanaditionalthreyears.theinitialamal rateshalbesubjectoanadjustmentasofeachjanuary1duringthetermtoreflecthe lese'sproportionofanyincreasesinthelesor'soperatingexpenses,togetherwiththe amountofrealpropertytaxesorasesmentslevied.during198,theleasexpiredandis operatingonamonthtomonthbasisuntilanewleasecanbexecuted. Rentalexpendituresincuredunderthisleaseamountedto$25,159duringtheperiod December31,198. Note9-RISKMANAGEMENT TheI)cparlmentisexposedtovariousrisksoflosrelatedtoworkerscompensation;for s; theftof,damagetoandestructionofasets;erorsandomisions;naturaldisasters;and grouphealthbenefitsforwhichthedepartmentcariescomercialinsuranceandalso participatesintheparish'sriskmanagementprogramforgeneraliability,workers' compensationandgroupinsurance.nosetlementsweremadeduringtheyearthatexceded thel)epartmeut'sinsurancecoverage.thedepartmentpaysmonthlypremiumstotheparish forgeneraliabilitybasedonvariousfactorsuchasitsoperationsandmaintenancebudget, exposureandclaimsexperience.thepremiumsforworkers'compensationarebasedona fixedpercentageofpayrol.3"hepremiumsforgroupinsurancearebasedonafixedrateper employe.theparishandlesalclaimsfiledagainsthedepartmentforwhichithas ins,urancecoverageundertheparish.3"hedepartmentcouldhaveaditionalexposurefor claimsinexcesoftheparish'sinsurancecontractsasdescribedonthefolowingpage: Policy Coverage Limits GeneralLiability Workers'Compensation $6,50,0 GroupInsurance Stamtory $1,125,0 Coveragetbrclaimsinexcesoftheabovestatedlimitsarctobefundedfirstbyasetsof theparish'sriskmanagementinternalservicefund,$87,017forgeneraliabilityand workers'compensationand$2,926,67forgroupatl)cmbcr31,197,thenscondlyby Ihcl)cpartment.AtDecember31,198the1)epartmenthadnoclaimsinexcesofthe abovecoveragelimits. 15

19 PLEMENT

20 Schedule1 SCItEDULEOFOTItERSERVICESANDCltARGES TereboneParishSalesandUseTaxDepartment FortileyearendedDecember31,198 Variance Budget Actual (Unfavorable Favorable Audilmgservices Autoandhavel $217,450 Insurance 5,670 $217,41 Oficemachinerentals Legalfes 16,960 4, ,060 16,956 Oficerent 10,218 12, Telephone Other 25,20 10,219 7,070 25,159 (l)(1) 7,695 7,840 7,693 (70) 41 2 Tola $302,323 $302,258 $65 16

21 SCItEDULEOFCASItRECEIPTSANDISBURSEMENTS Schedule2 PARISHSALESTAXFUND TereboneParishSalesandUseTaxDepartment ForlheyearendedDecember31,198 Cashatbeginingofyear $5,231,648 Cashreceipts: Salesandusetaxes(netofrefundsof$8,375) t]otelhnoteltaxes 62,219,210 Ocupationalicense(netofrefundsof$418) Miscelaneous: 479,97 36,675 Interest Other 2,047 3,453 Totalcashreceipts 63,061,362 Totalcashavailable 68,293,010 Cashdisbursements: Distribulionstothergovernmentalunits: TeneboneParishScholBoard TereboneParishConsolidatedGovenunent 31,684,707 TereboneParishSherif 23,309,328 Miscelaneous 1touma-TerebomleTouristComision 7,573, ,818 DislribmionstolheGeneralFund 645,587 3,484 Totalcashdisbursements 63,537,28 Cashalcndofyear $4,75,782 17

22 SPECIALREPORTSOFCERTIFIEDPUBLICACOUNTANTS

23 BourgeoisBenet ~EPORTONCOMPLIANCEANDONINTERNALCONTROl,OVER PURPOSEFINANCIALSTATEMENTSPERFORMEDINACORDANCE FINANCIALREPORTINGBASEDONANAUDITOFGENERAL- WITHGOVERNMENTAUDITINGSTANDARDS TotheSalesandUseTaxAdvisoryBoard, TercboneParishSalesandUseTaxDepartment, Houma,Louisiana. andusetaxdepartment(thedepartment),acomponentunitoftcreboneparishconsolidated Wehaveauditedthegeneral-puq~oseHnancialstatementsoftheTerebonel'arishSales Governmenl,SlateofLouisiana,asofandfortheyearendedDecember31,198,andhaveisuedour reporthereondatedfebruary24,19.weconductedourauditinacordancewithgeneraly aceptedauditingstandardsandthestandardsaplicabletofinancialauditscontainedingovernment AuditingStoglards,isuedbytheComptrolerGeneraloftheUnitedStates. Compliance financialstatementsarefreofmaterialmistatement,weperformedtestsofitscompliancewith AspartofobtainingreasonableasuranceaboutwhethertheDepartment'sgeneral-purpose certainprovisionsoflaws,regulations,contractsandgrants,noncompliancewithwhichcouldhave adirectandmaterialefectonthedeterminationofinancialstatementamounts,ltowever,providing anopiniononcompliancewiththoseprovisionswasnotanobjectiveofourauditand,acordingly, wedonotexpresuchanopinion.theresultsofourtestsdisclosednoinstancesofnoncompliance thatarcrequiredtobereportedundergovernmentauditingstandards internalcontroloverfinancialreporting financialreportinginordertodetermineourauditingproceduresforthepurposeofexpresingour Inplaningandperformingouraudit,weconsideredtheDepartment'sinternalcontrolover opiniononthegeneral-purposefinancialstatementsandnotoprovideasuranceontheinternal controloverfinancialreporting.ourconsiderationoftheinternalcontroloverfinancialreporting wouldnotnecesarilydisclosealmatersintheinternalcontroloverfinancialreportingthatmight ]340West]unuclI~lvd,Suile430 P~).ILox216g Iouma,I,A PJ~one(50,1) CertifiedPublic Fax(504) AcounlanlsIConsulanis A1.ilnitedLiabilityConlpan~P.OBox6060 NewOrleans,I,A I'hole(504) Fax(504) lefitageplaza,suile80 504WestSecondS0el P.OI~ox1205 "1hibodalx,I.A I)]~on~(504)

24 bematerialweakneses.amaterialweaknesisaconditioninwhichthedesignoroperationofone ormoreoftheinternalcontrolcomponentsdoesnotreducetoarelativelylowleveltheriskthat mistatementsinamountsthatwouldbematerialinrelationtothefinancialstatcmenlsbeingaudited mayocurandnotbedetectedwithinatimelyperiodbyemployesinthenormalcourseof performingtheirasignedfunctions.wenotednomatersinvolvingtheinternalcontroloverfinancial reportinganditsoperationthatweconsidertobematerialweakneses. l.egislativcauditorforthestateoflouisianandisnotintendedtobeandshouldnotbcusedbyany ThisreportisintendcdfortheinformationoftheAdvisoryBoard,managcmcnt,thc oneotherthanthesespecifiedparties. louma,l.a., February2,1,19 CertifiedPublicAcountants

25 SCHEDULEOFINDINGS TereboneParishSalesandUseTaxDepartment FortheyearendedDecember31,198 SectionISumaryofAuditor'sResults a)financialstatements Typeofauditor'sreportisued:unqualified Internalcontroloverfinancialreporting ~Materialweaknes(es)identified? ~Reportablecondition(s)identifiedthatarenot consideredtobematerialweakneses? _ yesxno _yesxnonereported Noncompliancematerialtofinancialstatementsnoted?_ yesxno b)federalawards TcreboneParishSalesandUseTaxDeparhnentdidnotreceivefederalawardsduringtheyear endeddecember31,198. Section1FinancialStatementFindings Nofinancialstatementfindingswerenoteduringtheauditfortheyearendedl)cembcr31,198 Section1FederalAwardFindingsandQuestionedCosts Notaplicable 20

26 REPORTSBYMANAGEMENT

27 SCltEDULEOFPRIORYEARFINDINGS TcrcboncParishSalesandUseTaxDepartment FortheyearendedDecember31,198 Section1l[ntcrnalControlandComplianceMaterialtotileGeneral-PurposeFinancial Statements NomaterialweakneseswerereporteduringtheauditfortheyearendedDecember31,197 NoreportableconditionswerereporteduringtheauditfortheyearendedDecember31,197 Compliance Nocompliancefindingsmaterialtothegeneral-purposefnancialstatementswercholeduring lheauditfortheyearendedi)ecember31,197. Section1]InternalControlandComplianceMaterialtoFederalAwards NofindingsorquestionedcostswerereporteduringtheauditfortheyearendedI)ecmber31, 197. SectionIManagementLeter Amanagementleterwasnotisuedinconectionwiththeauditfortheyearendedl)ecmbcr31 i97.

28 MANAGEMENT'SCORECTIVEACTIONPLAN TereboneParishSalesandUseTaxDepartment FortheyearendedDecember31,198 SectionInternalControlandComplianceMaterialtotheGeneral-PurposeFinancial Statements InternalControl NomaterialweakneseswerenoteduringtheauditfortheyearendedDecember31,198. Compliance NoreportableconditionswerenoteduringtheauditfortheyearendedDecember31,198 Nocompliancefindingsmaterialtothegeneral-purposefinancialstatementswereholeduring theaudilfortheyearendeddecember31,198. SectionInternalControlandComplianceMaterialtoFederalAwards TereboncParishSalesandUseTaxDepartmentdidnotreceivefederalawardsduringtheyear endeddecember31,198. SectionIlManagementLeter Amanagementleterwasnotisuedinconectionwiththeauditfortheyearendedl)ecembcr3l,