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1 RECFIV['D I[~.G.,,t.,,J,3,10[,~ 01Si~P - 14 Pl:t3:It3 LO U ISIANA STATE BOARD O F BOARD CERTIFIED SO CIAL W O RK EXAM IN ERS D EPARTM ENT O F H EALTH AN D H O SPITALS STATE O F LO UISIAN A G eneralpurpose FinancialStatem ents and IndependentAuditor's Reports Asofand forthe YearsEnded June 30,2001and 2000 W ith Supplem entalinform ation Underprovisions ofstate law, this reportis a public docum ent.a copy ofthe reporthas been subm ited to the entity and otherappropriate public officia,ts.the reportis available forpudfjc in:,pec!lor~atthe,baton Rouge office oftile Le~)islatwe Auditorand, w here appropriato,atthe office ofthe parish clerk ofcourt, ReleaseDate/O"(~.~ -"~ ~ 0

2 LO U ISIAN A STATE B O ARD O F B O ARD CERTIFIED SO CIAL W O RK EXAM IN ERS H IG H LAN D RO AD,SU ITE B BATO N RO U G E,LO U ISIAN A (225) E.Taylor Aultm an,jr.lcsw -Chairperson Theresa Earthly,LC SW -Vice Chairperson RobertShow ers,rsw -Secretary/rreasurer Joseph J.Bodenm illcr,lcsw G retchen G oodrich,lcsw Kenna M.Franklin,G SW JanetC.Zelden Suzanne L.Pevey,Adm inistrator G eorge M.Papale,LegalCounsel

3 TAB LE O F C O N TEN TS IndependentAuditor's Reporton the FinancialStatem ents G eneralpurpose FinancialStatem ents: Asofand fortile YearF.nded June 30,2001- Com bined Balance Sheet-G overnm entalfund Type and AccountG roup Statem entofrevenues,expenditures,and Changesin Fund Balance -Budget(GAAP Basis)and Actual-Governm entalfund Type -GeneralFund Asofand fortile YearEnded June 30, Com bined Balance Sheet-G overnm entalfund Type and AccountG roup Statem cm ofrevenues,expenditures,and Changesin Fund Balance -Budget(GAAP Basis)aud Actual-Governm entalfund Type -GeneralFund N otes to th e FinancialStatem ents- Introduction Sum m ary of SignificantAccounting Policies Basisof Presentation Reporting F.ntity Fund Accounting Basis of Accounting BudgetPractices l'.'ncum brances Cash and C ash Equivalents Inventories Fixed Assets Com pensated Absences Fund Equity TotalColum n on Balance Sheet Cash and Cash F,quivalcnts Changesin G eneralfixed Assets Long-Term O bligations Pension Plan Leases Estim ates Risk M anagem ent Litigation and C laim s FederalFinancialAssistance Com pensation Paid to Board M em bers O th er M atters GASB 34 Im plem entation O ther ReportRequired by Governm enta uditing Standards: IndependentAuditor'sReporton Com pliance and on InternalControlO ver Financial Reporting Based on an Auditof tile GeneralPurpose FinancialStatem ents Perform ed in Accordance w ith G overnm enta uditing Standards Schedule of Irindirigs Resolution of Prior AuditFindings O ther Repo rt Required by D ivision of Adm inistration: IndependentAuditor'sReporton AnnualFinancialReportto the Louisiana D ivision of Adm inistration AnnualFinancialReport N ote, Page (1 21

4 CERTIFIED PUBLIC ACCO UNTANT (A ProfessionalCorporation) Practice H m lted to Governm entalaccounting,auditing and FinancialReporting Phone OFFICE (225) FAX (225)638"3669 E-malgfdcpa@yah~.com Ofice 7663ktqciIOR DRIVE VENrI'RFSS,LA M em ber AM ERICAN INS1TflJ'I'E Op Cp&~ ILIUI$1ANA SOCIE'Iy OF CP/~ GOVERNM I!b~'l'FINANCE OFI,'ICERS A~SOCIA'I'ION IN D EPEN D EN T AU D ITO R'S REPO RT O N TH E FINAN CIAL STATEM EN TS Board M em bersof Louisiana State Board of Board Certified SocialW ork Exam iners D epartm entof Iteal th and H ospitals Sta te of Lo uisiana Baton Rouge,Louisiana I have audited the accom panying generalpurpose financialstatcm ents of tile LO UISIANA STATI,; BOARD O F BOARD CERTIFIED SO CIAl.W O RK F2KAM INERS,a com ponentunitof the State oflouisiana,as ofand for the yearscoded June 30,2001 and 2000,as listed in the Table ofcontents. These generalpurpose financialstatem ents are the responsibility of m anagem entof the l.ouisiana State Board of Board Certified SocialW ork F.xatlliners.M y responsibility isto expressan opinion on these generalpurpose financialstatem entsbased on nay audit. Iconducted nay auditin accordance w ith auditing standards and the standards generally accepted in the 13nitcd States ofam erica applicable to financial audits contained in Govet~unentAuditing Standards, issued by the Com ptroller Ge leralofthe United States,and tile Louisiana Governm entalauditguide. Those slandards and tile guide require that 1 plan and perform the auditto obtain reasonable assurance aboutw hether the general purpose financial statem ents are free of m aterial m isstatem ent. An audit includes exam ining,on a test basis, evidence supporting tile am ounts and disclosures in tile generalpurpose financialstatem ents. An audit also includes assessilg the accounting principles used and significant estim ates m ade by m anagem enl,as w ellas evahlating the overall general purpose financial statem ent presentation. I believe that nay autlit provides a reasonable basisfor nay opinion. Io nay opinion,the accom panying general purpose financialstatem ents refert'ed to abovc present fairly,il all m aterialrespects,the financialposition ofthe Louisiana State Board ofboard Certified SocialW ork Exam inersas ofjune 30,2001and 2000,and thc resultsofitsoperationsforthe yearsthen ended,in conform ity with generally accepted accounting principles in the U nited Statesof Am erica. In accordance w ith G overnm enta uditing Standards,1have also issticd m y reportdated August27,2001,on m y consideration of tile Louisiana State Board of Boarcl C ertified Social W ork Exam iners' interoal control over financialreporting and m y tests ofitscom pliance w ith certain provisionsof law s,regulations,anticontracts. That reportis an integralpartof an auditperform ed in accordance w ith Governm entauditing Standards antishould be read in conjunction w ith thisrcportin considering the resultsofm y audit. Ihave also issued nay reportdated August27,2001,on m y consideration of tile Louisiana State Board ofboard Certified SocialW ork Exam iners'annualfinancialreportto the D ivision of Adm inistration as of and for the year ended June 30,2001. A ugust27,2001

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6 LO U ISIANA STATE BO ARD O F BO ARD CERTIFIED SO CIAL W O RK EXAM INERS G O VERN M EN TAL FUN D TYPE -G EN ERAL FUN D STATEM ENT O F REVE N UES,EXPEN D ITURE S,AN D CH AN G ES IN FUN D BALAN CE - BUDGET (GAAP BASIS)AN D ACTUAL FOR THE YEAR ENDED JUNE 30,2001 Revenues: Licenses,perm its and fees Interestearnings O therfeveuucs Budget $ 467,500 4, Actual 484,159 6,523 36,775 Variance Favorable, (Unfavorable) 16,659 2,023 21,775 TotalRevenues , llxpendttures: C urrent- Salaries,and benefits Travel O perating services Supplies Professionalservices Capitaloutlays 169,224 87,600 75,436 9, ,000 19, ,734 52,155 61,976 7,414 96,537 1,135 64,490 35,445 13,460 2,086 13,463 18,365 F.xcessof Revenues(F.xpendttures) Fund Balance -July 1,2000 FUND llaiance -June 30, ~ ~951 15, ,506 95,224 $ 298, , The accom panying notes are an integralpartof this statem ent

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8 LO U ISIANA STATE BOARD O F BO ARD CERTIFIED SO CIAL W O RK EXAM IN ERS G O VERN M ENTAL FUN D TYPE -G EN ERAL FUN D STATEM ENT O F REVEN UES,EXPEN D ITURES,AN D CH AN G ES IN FUN D BALAN CE - BUDGET (GAAP BASIS)AN D ACTU AL FOR TitE YEAR ENDED JUNE 30,2000 R evenues: I,icenses,perm itsand fees Interestearnings O ilierrevenues Budget _ 452,000 4,500 9,500 Actual 286,384 4,688 26,587 Variance Favorable _ (Unfavorable) $ (165,616) Totalltevenucs 466, ,659 (148,341) Expenditures: C tlrrent- Salaries and benefits Travel O perating services Supplies Professionalserv ices Capitaloutlays 149,227 87, ,436 8,780 72,000 33~100 91,837 59,187 64,055 4,877 92,232 57,390 28,413 68,381 3,903 (20,232) 33, , , ,955 l~xcessof Revenues(Expenditures) (17,143) 5,471 22,614 Fund Balance -July 1, , FUND BAIANCE -June $ 95,224 The accom panyii'tg notes are an integralpartof thisstatem ent

9 LO UISIAN A STATE BOARD O F BO ARD CERTIFIED SO CIAL W O RK EXAM IN ERS STATE O F LO U ISIAN A N O TES TO TH E FINAN CIAL STATEM EN TS JUNE 30,2001 AND 2000 N O TE 1 -IN TRO D U CTIO N The 1.ouisiana Statc Board of Board Certified SocialW ork Exam iners w ascreated by tile Louisiaoa State Legislature underthe provisions ofl.ouisiana Revised Statute 37: The Board is underthe controloftile l)cpartm ere of llcalth aod ltospitals and a com ponentunit of tile State of Louisiana and is an integralpartof such reporting cotity. The board iscom posed ofseven (7)membersappointed by tile Govern oroflouisiana,who serve withoutcompensation forthree (3)yearterm s. Board membersare selected from a listcom piled by the I.ouisiana Society forclinicalsocialw ork Exam iners and the State Councilofthe NationalAssociation ofsocial W orkers. Board m em bers are reim bursed actual travel expenses as authorized by Louisiana P,eviscd Statute 37:3444(I)). The Board w asestablished to safeguard tbe publichealth,safety and w elfare ofthe people ofibis state agaiostunauthorized,unqualified,and im proper practice ofsocialw ork. The Board shares office space, in Baton Rouge, Louisiana, and staf personnel w ith tile Lonisiaoa Board of Exanlincrs for Spccch-l,anguagc Pathology and Audiology and tile l.ouisiana Board ofexauliners illl)ictetics anti N utrition. The Board's operationsare funded entirely througb annualself-generated revenues. N O TE 2 -SUM M ARY O F SIG N IFICAN T ACCO U N TI N G PO LICIES htaprilof1984,tile FinancialAccounting Fouodation established the Governm entalaccountiog Standards Board (GASB)to prontulgatc generally accepted accounting principlesand reporting standardsw ith respectto activities and transactions ofstate and localgovernm cotal entities. The Codification of G overnm em alaccoum ing and Financial F,eporting Standards led subsequent GASB pronouncem ents are recognized as generally accepted accounting principles for state and localgovernm ents. The l.ouisiana State Board ofboard Certified SocialW ork Exam iners prepares itsfinaocialstatem ents in accordance w ith the standardsestablished by tile GASIL GASB Codificatioo Scclioo 2100 and GASB Statem ent 14,"The Financial Rel)orting Em ily," have dcfil~cd the govcrm uentalreporting entity to be tbe State oflouisiaoa. The Louisiana State Board ofboard Certified Social ~/ork Exantiners is considered a com ponentunitof the State of Louisiaoa because tile state exercises oversight responsibility in thatthe governorappointstile board m em bers,and public service isrendcrcd w ithin the state's boundaries. The accom panying generalpurpose financialstatem ents presentinform ation only as to the transaclions oftile 1.ouisiana State Board ofboard Certified SocialW ork Exam iners,a com poncot unitoftile State of Aonually tile State of lxm isiaoa issues a generalpurpose financialstatem entw hich inch dcs tile activity contained i0 tile accom panying financialstatem ent. The generalpurpose fir~ancialstatem ent is issued by tile Louisiana Division ofadm inistration-office ofstatew ide Reporting and Accounting Policy and audited by the l.ouisiana Legislative Auditor. The accounts oftile Louisiana State Board of Board Certified SocialW ork Exam iners are organized 00 the basisof funds and accountgroups,each ofw hich is considered a separate accounting entity. The operations ofeach fund arc aecoum ed for w ith a separate setofself-balancing accounts that com prise its assets,liabilities,fund equity, reveox es art(iexpendltnres or expcoses,as appropriate. Revenues are accounted for in these funds based I.I1)O 1

10 LO U ISIAN A STATE BOARD O F BO ARD CERTIFIED SO CIAL W O RK EXAM IN ERS STATE O F LO UISIANA N O TES TO TH E FINAN CIAL STATEM EN TS JUNE 30,2001 AND 2000 tile purpose for w hicb they are to be spentand the m eans by w hich spending activitiesare controlled. Tile funds presented in tile accom panying financialstatem ents are described as follow s: The G eneralfund istile generaloperating fund ofthe Board and isclassified asa governm entalfund. It accounts for tile Board's generalactivities,including the collection and disbursem entof specific or legally restricted m onies,the acquisition or construction of general fixed assets,and tile servicing ofgeneral long-term debt. The Board hastw o accountgroupsw hich is nota "fund". Itisconcerned only w ith the m easnren~entof financialposition,notw ith m easurem entofresuhsofoperations. Fixed assetsused in the goverm nental fire d type operations(generalfixed assets)are accounted forin the GeneralFtxed AssetsAccountGroup, ratherthan in the governm entalfunds. Long-term obligations expected to be financed from governm entalhin ds are accounted for in the GeneralLong.Term D ebtaccount Group,not in the governm ental fim cls. Basis ofaccounting refers to w hen revenues and expenditures,or expenses as appropriate,are recognized and reported in the financial statem ents. Basis of accounting relates to the tim ing of tile m easurem ents m ade, regardless oftbe m easurem entfocus applied. The m odified accrualbasis ofaccounting is used by the General Fund. The G eneralftm d usestile follow ing practicesin recording revenuesand expenditures: R evenues Licenses and fees are recorded in the yearthesc revenues are received. Licenses are reftcw cd annually betweeftjune 20 and Novem ber30.a lapsed license fee ischarged between Decem ber 1 and February 28 and licensesare canceled after February 28. Interestincom e is recorded M,~ben received Substantially allotherrevenuesare recorded w hen they becom e available F,xpendituresare generally recognized underthe m odified accrualbasisofaccounting w hen the related ftm d liability is incurred,exceptfor accum ulated annualand sick leave,w hich is recognized w hen paid. The lloard preparesitsbudgeton the m odified accrualbasisofaccounting and allappropriationscontained in the budgetlapse atyearend. Tile proposed budgets are prepared by the adm inistrator,adopted by tile Board,and m ade availablc tn the l)epartm eotoflleahh and Ilospitals by January 1stofeach year in com pliance w ith Louisiana Revised Statute 39:1334 and Budgetam endm entsrequire the approvalofthe board. Budgeted anaounts included in the accom panying financialstatem entsinclude the originaladopted budget, l~orm albudgetintegration iscm plcwed asa m anagem entcontroldevice during the year.

11 LO U ISIANA STATE BOARD O F B O ARD CERTIFIED SO CIAL W O RK EXAM IN ERS STATE O F LO UISIANA N O TES TO TH E FINAN C IAL STATE M EN TS JUNE 30,2001 AND 2000 Encum brance accounting is used w hen purchase orders are recorded in order to reserve that portion oftile al,plicable appropriation.the Board does notfollow tile encum brance m ethod ofaccounting. Cash and cash equivalents include cash,dem and deposits,and certificatesof depositatyear end. Understate law, the Board m ay dcpositfundsw ith a bank organized underlouisiana law orofany otherstate ofthe United States, orunderthe law softhe United States. Furthern'Jore,the Board m ay investin certificatesofdepositofstate banks organized under Louisiana law and nationalbankshaving theirprincipaloffices in l.ouisiana. Understate law,the Board m ay investilunited Statesbonds,treasury notes,orcertificates. These arc classified as investm ents iftheiroriginalm aturities exceed 90 days;how ever,ifthe originalm aturities are 90 (lays or less, they are classified as cash equivalents. ]nvesn'lentsare stated atcost. Inventories Inventoriesforsuppliesare im m aterialand are recorded asexpendituresw hen purchased Fixed Assets Fixed assetsare recorded asexpendituresatthe tim e purchased and tile related assetsare capitalized (reported) in the generalfixed assets accountgroup. N o depreciation has been provided on generalfixed assets. assets are valued athistoricalcost. Allfixed Em ployeesearn and accum ulate annualand sick leave atvarious rates,depending on theiryears ofservice. The am ountofannualand sick leave thatm ay be accum ulated by each em ployee is unlim ited. Upon term ination, em ployeesortheirheirsare com pensated forup to 300 hoursofunused annualleave atthe em ployee'shourly rate ofpay atthe tim e ofterm ination. Upon retirentent,unused annualleave in excessof300 hoursplusunused sick leave are used to com pute retirem entbenefits. 'lk)talcolum nson the balancc sheetiscaptioned M em orandum Only (overview)to indicate thatitispresented only to facilitate financialanalysis. D ata in this colum n does notpresentfinancialposition in conform ity w ith generally accepted accounting principles. N eitheris such data com parable to a consolidation.

12 LO UISIANA STATE BOARD O F B O ARD C ERTIFIED SO CIAL W O RK EXAM IN ERS STATE O F LO U ISIANA N O TES TO TH E FINAN CIAL STATEM EN TS JUNE 30,2001 AN D 2000 NOTE 3 -CASH and CASH EQUIVALENTS AtJune 30,2001 and 2000,tile Board has cash and cash equivalents (book balances) totaling $305,075 and $96,798,respectively,in dem and depositsand certificatesofdeposit. AtJune 30,2001 and 2000,tile collected bank balances are $307,419 and $110,136,respectively which were secured by federaldepositinsurance and pledged secu riticsof$3 ]6,319 and 110,136,respectively. These deposits and il'lvestm ents arc stated atcost,w hich approxim ates m arket. U nder state law,these deposits and investm ents(orthe resulting bank balances)m ustbe sccurcd by federaldepositinsurance orthe pledge of securities ow ned by tile fiscalagentbank. The m arketvalue ofthe pledged securities plus the federaldeposit insurance m ustatalltim es equalthe am ounton depositw ith the fiscalagent. These pledged securitics arc held in the nam e oftile pledging fiscalagentbank in a hoh:fing or custodialbank in tile form ofsafekeeping receipts held by the state treasurer. N O TE 4 -CH AN G ES IN G EN ERAL FIXED ASSETS A sum m ary ofchangesin generalfixed assetscom posed offurniture and ofi ce equipm entfollows Balance,July 1,1999 Additions D eletions l?,alaucc,june 30,2000 Additions 1)cletions I]alance,June 30, ,311 (2,8oo) 32,511 1,135 (12,266) 21,380 N O TE 5 -LO N G -TE RM O BLIGATIO N S Long-term obligationsconsistof com pensated absences The costofleave privileges,com puted in accordance w ith GASB Codification Section C60,is recognized as a currcnt-year expenditure in tile G eneral Fund w hen leave is actually taken. The cost of leave privileges not requiring current resources is recordetl in the general long-term obligations account group. The liability for unused manualleave atjune 30,2001 and 2000,com puted in aecordancc w ith GASB Codification Section C60.105,isestim ated to be $12,985 and $-0-,respectively. Tficse am ountsart"recorded in the generallong-term obligations accountgroup. N O TE 6 -PEN SIO N PLAN The m ajority ofem ployees ofthe Board are members ofthe Louisiana State Employees Retirem entsystem ("System "),a n'm ltiple-em ploycr,public em ployee retirementsystem (I*ERS) controlled and adm inistered by a separate board oftrustees.

13 LO UISIAN A STATE BOARD O F BO ARD CERTIFIED SO CIAL W O RK EXAM IN ERS STATE O F LO UISIANA N O TES TO TH E FINAN CIAL STATEM EN TS JUNE 30,2001 AN D 2000 All fulltim e em ployees are eligible to participate in tile System. Benefits vest w ith ten years of service. At retirenw ntage,em ployeesare entitled to annualbenefitsequalto $300 plus2.5% oftleirhig lestconsecutive 36 m outilaverage salary m uhiplied by theiryearsofcredited service.vested em ployeesm ay retire at(a)any age with thirty yearsofservice,(b)age 55 witlatwcnty-five yearsofserv ice. The System also providesdeath and disability benefits. Benefitsarc established by state statute. The system issues an annualpublicly available financialreport tllatincludesfinancialstatem ents and required supplem entary inform ation forthe System. 'l'ilatreportm ay be obtained by w riting to tile l.ouisiana State F,m ployees'retirem ent System ;P. O.Box 44213;Baton I',ouge,IA In addition to tile em ployee contribution w itidaeid at7.5% of gross salary, tile Board contributes an additional percentage ofgrosssalary to tile System (12.3% from July 1,1999 to June 30,2000 and 13.0% from July 1,2000 to June 30,2001).The Board'scontributionsto the System fortile yearsended June 30,2001,2000,anti1999,were $8,160,$6,817,and $6,529,respectively,equalto tile required contributionseaclyear. N O TE 7 -LEASES The Board,jointly witillouisiana State Board off.xam iners in Specch-l.anguagc Pathology and Audiology and l.ouisiana State Board ofexam iners in D ietetic and Nutrition,share office space under an operating lease on a m oulidy basis.tile currentcontractterm ism ay 1,2001 through April30, 2006 w ith a 5 yearoption. Rentexpenditure fortile yearsended June 30,2001and 2000 was$7,281and $4,998,respectively Future m inim um lease paym entsunder thislease are asfollow s YearEnding June 30, ,362 20,362 20,362 20,362 16,968 Since tile paym entschedule is considered system atic and rationalunder GASB Statem entn o. 13,rentalexpenditure is based on the relevant lcase agreem ent and not in accordance w ith lease term s as required by GASB Statcm ef~tn o.13. N O TE 8 -ESTIM ATES Tile preparation of financialstatem ents in conform ity w ith generally accepted accounting principles require m anagem entto m ake estim ates and assum ptions thatafectthe reported am ounts of assets and liabilities and disclosure ofcontingentassets and liabilities atthe date ofthe financialstatem ents and tile reported incom e of revenue and expenditures during the reporting period.actualresults could differfrom those estim ates. 10

14 LO U ISIANA STATE BOARD O F BOARD CERTIFIED SO CIAL W O RK EXAM IN ERS STATE O F LO U ISIANA N O TES TO TH E FINAN CIAL STATE M EN TS JUNE 30,2001 AN D 2000 NO TE 9 -RISK M ANAGEM ENT The IIoard is exposed to various risks ofloss rcsuhing to torts;theftof,dam age to,and destruction ofassets; errorsand om issions;injuriesto em ployees;and naturaldisasters. The Board attemptsto m inim ize risk from significantlossesby sharing in the state's insurance program. N O TE 10 -LITIGATI O N AN D CLAIM S There were no judgments,claim sorsinlilarcontingenciespending againsttile Board atjune 30,2001and 2000 N O TE 11 -FED ERAL FINAN CIAL ASSISTAN CE The lloard received no federalfundsduring the fiscalyearsended June 30,2001and 2000 N O TE 12 -CO M PEN SATIO N PAID TO BOARD M EM BERS Thc schedule of f,er diem paym ents to Board M enlbers is prcsented in com pliance w ith llouse Concurrent liesolntion No.54 ofthe 1979 Session ofthe Louisiana Legislaturc. Board m em bersserve w ithoutcom pensation asprovided by LouisianaRevised Statute 37:2704(D). N O TE 13 -O TItER M AT FERS Asmentioned in Note 6 -Leases,the Board sharesoffice space with two (2)state boards.these three (3)boards also share em ployeesaswellascertain office expenditures,such asjanitorial,security,copy m achine and utilities. Salariesarc allocated to each ofthe three (3)boardsbased on actualtim e spentforeach board. NO TE 14 -GASB 34 IM PLEM ENTATIO N The Governm entalaccounting StandardsBoard (GASB)issued Statem entnum bcr34,"basicfinancialstatem ents - and M anagem ent's l)iscussion and Analysis -for State and LocalGovernm ents",in June The (late of im plem entation is cffi:ctive in three phases based on a governm ef~t's totalannualrevenues in the firstfiscalyear ending aficrjtm c 15,1999 (earlierapplication isencouraged).since these financialstatem entswilbc included il the Cofnprehensivc AnnualFinancialReportofthe State of Louisiana and since tile totalannualrcvcnucs ofthe State oflx)uisiana isin excessofgl00 m illion ilthe fiscalyearending June 30,2000;therefore,the I.oulslanaState Board ofcertified SocialW ork Exam inersis(phase 1)required to im plem entthe provisionsforthe l)rononnccm cnt forfinancialstatem entsfortheperiod beginning afterjune 15,2001. GASB StatementNum ber34 establishesa new governm ental financial reporting m odel that w ill feature, am ong other significant changes, m anagem ent discussion and analysis,a uniquc com bination offun(i-based and govcrm nent-w ide financialstatem ents,required supl'~lem entary inform atiofh accounting for infrastructure assets,and accounting for the depreciation ofinfrastructure assets.thc cffectson the LouisianaStateBoard ofcertified SocialW ork Exam iners'financialstatem entsare not know n atthistim e;how ever,the pronouncem entw illbe im plem ented forthe yearending June 30,

15 TH IS PAG E IN TENTIO NALLY I~ FT BLAN K 12

16 OTHER REPORTS REQUIRED BY The follow ing pages contain a reporton com pliance w ith law s and regulations and on internal controlover financialreporting as required by G overnm etttauditing Standards,issued by the Com ptroller G eneral of the U nited States. This report is based solely on the audit of the financial statem ents and includes, w here appropriate, any reportable conditions and/or m aterialm isstatem ents in internalcontrolor com pliance m atters thatw ould be m aterialto the presented financialstatem ents.

17 CERTIFIED PUBLIC ACCO UN TAN T (A ProfessionalCorporation) Practice Lim ited to GovertmlentalAccounting,Auditing and FinancialReporting Phone ovl:lcf!(225) Fi~x (225)63~36 9 E-mat]gfdcpa~ lh~ ~m O fl~ce 7663 ANCFIOR DmVI~ VE N'TRESS,IA Member AM ERICAN INS'ltTtrl'l~OF Cp3.~ LOOISIAt~ SOC ln~f OV CV&. cjovi!rnm ENT FINANCE O :IqCEIL~;/.~S()CIAI'ION IN D EPEN D EN T AU D ITO R'S REPO RT O N C O M PLIA N CE AN D O N IN TERNAL CO N TRO L O VER FINAN CIAL REPO RTIN G BASED O N AN AU D IT O F TH E G EN ERAL PU RPO SE FINAN CIAL STATEM EN TS PERFO RM ED IN ACCO RDAN CE W ITH G O VERNM EN TA UD ITIN G STAND A RD S Board M em bers of Louisiana State Boar d of Board Certified SocialW ork Exam iners D epartm entof H ealth and H ospitals State of Louisiana Baton Rouge,Lo uisian a Ihave audited the generalpurpose financialstatem ents of the LO U ISIANA STATE BO ARD O F C ERTIFIED SO C IAL W O RK EXAM IN ERS,a com ponentunitof the State of Louisiana, as of and for tile years ended June 30,2001 and 2000,and have issued m y reportthereon dated August 27,2001. Iconducted m y auditin accordance w ith generally accepted auditing standar ds,the standards applicable to financialaudits contained in Governm entauditing Standards,issued by tile COra l)troller G eneral of the United States, and tile LouiM atm G overnm eutal A udit G uide. Compliance Aspartofobtaining reasonable assurance aboutw hether tile l.ouisiana State Board ofcertified SocialW ork Exam iners'financial statem ents are free of m aterial m isstatem ent,1 perform ed tests of its com pliance w ith certain provisions of law s,regulations,and contracts,noncom pliance w ith w hich could have a direct and m aterial effect on the determ ination of financial statem entam ounts. }low cvcr,providing an opinion on com pliance w ith those provisions w as notan objective ofm y auditand,accordingly,ldo notexpresssuch an opinion.the resultsof m y tests disclosed no instances of noncom pliance that is required to be reported under G overnm enta uditing Standards. Interna lcontrol O ver Financial Rep orting In plan ning an d perform ing m y audit,iconsidered the Louisiana State Board of Board Certified SocialW ork Exam iners'internalcontrolover financialreporting to determ ine m y auditing procedures for the purpose ofcxpressing m y opinion on the generalpurpose financialstate- 14

18 m ents and not to provide assurance on the internal control over financial reporting. M y consideration oftile internalcontroloverfinancialreporting would notnecessarily disclose all m atters in tile internalcontrolthat m ightbe m aterialw eaknesses. A m aterialw eakness is a condition ilw hich tile design or operation of one or m ore of the intern alcontrolcom ponents does notreduce to a relatively low levelthe risk thatm isstatem ents ilam ounts thatw ould be m aterialin relation to the financialstatem ents being audited m ay occur and not be detected w ithin a tim ely period by em ployees in the norm alcourse of perform ing their assigned functions. 1noted no m atters involving the internalcontrolover financialreporting and its operation that]consider to be m aterialw eaknesses. This report is intended solely for the inform ation and use of tile Louisiana State Board of Board Certified SocialW ork Exam iners and its m anagem ent and is not intended to be and should notbe used by anyone other than these specified parties. By provisions of state law, this reportis a public docum ent,and ithas been distributed to appropriate officials. August27,2001

19 LO U ISIANA STATE BO ARD O F BO ARD CERTIFIED SO CIAL W O RK EX AM IN ERS SC H ED U LE O F FIN D IN G S YEARS ENDED JUNE 30,2001 AND 2000 A. SUM M ARY O F AU D IT RESULTS 1 2 The auditor's report expresses an unqualified opinion on tile generalpurposc financial statem ents of Louisiana State Board of Board Certified Social W ork Exam iners N o m aterialw eaknessesor reportable conditionsw ere disclosed during time audit of the generalpurpose financialstatem ents. N o instances of noncom pliance w ere disclosed during the audit of thc general purpose financialstatem ents. There w ere no federalaw ards received by Louisiana State Board of Board Certified SocialW ork Exam iners. B. FIN D IN G S--FINAN CIAL STATEM EN TS AUD IT N O N E 16

20 LO U ISIANA STATE BO ARD O F BO ARD CERTIFIED SO CIAL W O RK EXAM IN ERS RESO LU TIO N O F PRIO R AU D IT FIN D IN G S YEARS ENDED JUNE 30,2001 AND FiscalAgent The Board hasselected financialinstitutions approved by the Interim Em ergency Board 99-2 Investm entpolicy The Board adopted an investm entpolicy thatcom pliesw ith ActN o BudgetM onitoring The Adm inistrator has established procedures to m onitor and am end the budgetw hen required by LRS 39: Sales Tax Paid on Invoices The Adm inistrator has established procedures to prevent the accidental paym ent of saleslax on invoices for supplies and m aterials Investm ents M aturing in Tw o Years The adoption ofan Investm entpolicy asstated in 99-2 corrected thisviolation 99-6 State TravelRegulations The Board has adopt a strict policy and established procedures for board m em bers, em ployees,and othersw ho subm itexpenses for reim bursem entthatfollow allrequirem ents of the PPM 49. The Adm inistrator has im proved its review of financial data w ith the contract accotm - tan l. 17

21 TH IS PAG E IN TEN TIO N ALLY LEFT BLAN K 18

22 SUPPLEM ENTAL INFORMATION REQUIRED BY STATE O F LO U ISIAN A D IVISIO N O F AD M IN ISTRATIO N O FFIC E O F STATEW ID E REPO RTIN G AN D A C C O U N TIN G PO LICY The follow ing pages contain a report on the Board's Annual Financial Report prcparccl in accordance w ith tile requirem ents of tile Louisiana D ivision of Adm inistration, O ffice of Statew ide Reporting and Accounting Policy.

23 CERTIFIED PU BLIC A CCO U N TAN T (A ProfessionalCorporation) PracticeLim ited to Governm entalaccounting,auditing and FinancialReporting OFFICE (22~.) I:A~ 025)6}8-~669 I:-malk#(kp~@ydloo.conJ O ffice 7663ANCHOR DRIVE VEN'I'RI~S$,LA M em ber AM ERICAN INS]ITLrFE O F Cl'As LOUISIANA SOCIE'I'Y OF CPAs GOVERNM Ei~fI:INANCU O]FICIRS ASSOCIA'IION IN D EPEN D EN T AU D ITO R'S REPO RT O N TH E AN N UAL FINAN CIAL REPO RT TO TH E STATE O F LO U ISIA N A,D M SIO N O F AD M IN ISTRATIO N O FFICE O F STATEW ID E RE PO RTIN G AN D ACCO U N TIN G PO LICY Board M em bers of Louisiana State Boar d of Board Certified SocialW ork Exam iners D epartm entof H ealth and H ospitals Sta te of Lo uisiana Baton Rouge,Louisian a O ur reporton the auditof the generalpurpose financialstatem ents of the LO UISIANA STATE BOARD OF BOARD certified SOCIAL W ORK EXAM INERS asofand forthe yearended June 30,2001,appears on Page 1. Thatattditw as m ade for the purpose of form ing an opinion on the generalpurpose financialstatem ents taken as a w hole. The Annual Financial Report is presented for purposes of additionalanalysis and isnota requited partof the generalpurpose financialstatem ents. Such inform ation hasbeen subjected to the auditing proceduresapplied in the auditof the generalpurpose financialstatem ents,and,in out"opinion,is fairly stated in allm aterialrespectsin relation to the generalpurpose financialstatem ents taken asa w hole. August27,2001

24 :kl ~ '( id't F.X A ~lln Et{S A ugust20,2001 D ivision ofadm inistration O fice ofstatew ide Reporting & Accounting Policy P.O.Box Baton Rouge,LA DearS irs: Enclosed please find the reporting packetforthe Louisiana State Board ofsocial W ork Exam iners, a professionallicense board under the Departm ent of H eallh and Hospitals forthe fiscalyearending June 30,2001. You m ay directany questions to M rs. Suzanne Pevey,Adm inistrator,atthe Board office at Sincerely ETA :sip 1 Enclosure ultm an,jr.,lc SW Chairperson SSSO ~I(_ Phone

25 STA TE O F LO UISIA NA Louisiana State Board ofsocialw ork Exam iners AnnualFinancialStatem ent Forthe YearEnded June CO NTENTS Statem ent Page No Transm ittalletter Affidavits Com ponentu nitfinancialstatem ent: Balance Sheet-A lfund Types and AccountG roups Statem entofrevenues,expenditures and Changes in Fund Balances Statem entofrevenues,expenditures and Changes in Fund Balances -- Budget(GAAP/NON-GAAP Basis)and Actual A B C Notes to the FinancialStatem ents 10 Schedule ofperd iem Paid Board M em bers Schedule ofexpenditures by Object Supplem entalinform ation to Com plete Note C Schedule 1 2 Page N o

26 Schedule No. STATE O F LO UISIA NA AnnualFinancialStatem ent FiscalYearEnding June 30,2001 Louisiana State Board ofsocialw ork Exam iners Division ofadm inistration O ffice ofstatew ide Reporting and Accounting Policy P.O.Box Baton Rouge,Louisiana Legislative A uditor P.O.Box Baton Rouge,Louisiana AFFIDAV IT Persona ly cam e and appeared before the undersigned authority,e.taylora ultm an,jr C hairperson ofthe Louisiana State Board ofsocialw ork Exam iners w ho duly sw orn,deposes and says thatthe financialstatem entherew ith given presents fairly the financialposition of Louisiana State Board ofsocialw ork Exam iners atjune 30,2001,and the results ofoperations forthe yearthen ended in accordance w ith policies and practices established by the D ivision of Adm inistration orin accordance w ith G enera ly Accepted A ccountprinciples as prescribed by the G overnm entala ccounting Standards Board. Sw orn and subscribed before m e,this dayof,'~~,~,20o I Prepared by: Susan M.Sevario,C PA and Title:Suzanne U Pevey,A dm inistrator Telephone No.: Date: A ugust9,2001 ORLEANS PARISH MY COMMISSION IS FOR L~FE

27 STA TE O F LO UISIA NA Louisiana State B oard ofsocialw ork Exam iners DEPA RTM ENT O F HEA LTH & HO SPITA LS BA LANC E SH EET - A LL FU N D S A ND AC C O U NT G RO U PS A S O F June ASSETS AND OTHER DEBITS Cash and cash equivalents Investm ents Receivables Due from otherfunds O therassets Fixed assets Am ountto be provided forretirem ent ofgenerallong-term obligations G overnm entalfund Types Special G eneral Revenue E#nd $ 91, $ 213,20g.04 _A%countLGfouJ~s G eneral G eneral "fetal Fixed A ssgls Long-Term Obliq &t!_ofls (Memorandum On!y) 39, "IOTA[ ASSE'iS AND OTilER DEBItS $ 306, $ $ $,~ LIABILITIES,FUND EQ UITY,AND OTHER CREDITS LIA BILITIES: Accounts payable Com pensated absences payable Due to otherfunds Longqerm obligations payable O therliabilities Totalliabilities EQ UITY AND OTHER CREDITS: Inveslm entin generalfixed assets Fund balance - reserved - unreserved,undesignated - unreserved,designated Totalequity and othercredits $ _._ ~,34#:.8?_ $ $ $ $ , TO'fAL LIABILITIES,FUND EQ UITY,AND OTHER CREDITS $ 305, $ $ 39, $ The accom panying notes are an integralpa~ ofthis statem ent Statem enta

28 STA TE O F LO U ISIA NA Louisiana State Board ofsocialw ork Exam iners D EPA RTM ENT O F H EA LTH & H O SPITA LS STATEM ENT O F R EVENUES,EXPENDITURES,A ND CHANG ES IN FUND BA LA NC ES G O VERNM ENTA L FUND TYPES FO R TH E Y EA R EN D ED June REVENUES: Use ofm oney and property Licenses,perm its,and fees Sales ofcom m odities and services O ther G eneral Fund $ 6, _ 520,93 _ 3:82 Special Revenue Fund~_) Total (Memorandum Only) Totalrevenues. 527,457:27 EXPEND?fURES: Intergovernm enlal O ther 3 23,951:33 lotalexpenditures Excess(Deficiency)ofRevenuesover Expenditures 203, OTHER FINANCING SO URCES(USES) 1otalotherfinancing sources(uses) Excess(deficiency)ofrevenues and othersources overexpenditures and otheruses._ 203,505:94 Fund balance(deficit)atbeginning of year(as restated).._ 95, Fund balance(deficit)atend ofyear $ 298.7_30.34 The accom panying notes are an integralpart ofthis statem ent. Statem entb

29 STATE O F LO UISIA NA Louisiana State B oard ofsocialw ork Exam iners D EPA RTM ENT O F H EA LTH & H O SPITA LS STA TEM ENT O F R EVEN U ES,EXPEND ITUR ES,A ND C HA NG ES IN FUN D BA LA NC ES BUDGET (GAAP/NON-GAAP BASIS)AND ACTUAL G OV ER N M ENTA L FU ND TY PES FO R THE YEA R EN D ED June 30,2001 _ REVENUES: "Renewals & Exam inatioh Fee *Interest "RestitutLon "M iscelaneous B_ ud~ $ 3,5~,5oo~_o.o _ 4,5 o0_:0_o ~ 17.ooo.oo 15,oo9.o0 G ENE R/~L FUND A ctual $ 453, , _ , Variance Favorable ~ U _y~rab~ $ 3,_224~6p 2 _,023.4 _ 5 _ 13, _2o TotalreveRues 4~ _ -(:go_0.9_0_ 5 _ 27.,457. _ 27 45, _ EXPENDr]URES: *Salaries & benefits *Travel 'Ope _ rat ir~ S~rvi _ ces "Sup ~ OII lies.. *ProfessionalServices CapitalO utlay ]oralexpenditures E~cess(Deficiency)ofRevenuesover Expenditures OTHER FINANCING SOURCES(USES) _ 169, ,000,00 110, , _4Z!,2_6_o~o9 104, ,154.8! 59, , _. 96, , _ 323,951~ :~ ,445:~19 _. ~i8,69 _~~41 2 _ 7 _ 5:39 _.. _ , _.[i47, _. _ 15: ~ 203, _ 187;7#5~94 Totalotherfinancing sources(uses) Excess(deficiency)ofrevenuesand other Sources overexpenditures and otheruses 15, , ,765 '~4 Fund balance(deficit)atbeginning ofyear Adjustment 95, Fund balance(deficit)atend ofyear $ 110, $ 298, $ 187, " Categorize revenues and expenditures accordir~g to boardis/com m ission's chartofaccounts ]-he accom panying notes are an integralpartofthisstatem ent Statem entc

30 STATE O F LO U ISIA N A Louisiana State Board ofsocialw ork Exam iners D EPA RTM ENT O F H EA LTH & HO SPITA LS STA TEM ENT O F R EV EN U ES,EXPENDITUR ES,A ND C HA NG ES IN FU N D BA LA N C ES BUDGET (GAAP/NON-GAAP BASIS)AND ACTUAL G O V ER NM ENTA L FU N D TY PES FO R THE YEA R ENDED June REVENUES _Ḅudget SPECIALREVENUE FUND(S) Actual Variance Favorable LUn[avorab!g] 1 oralrevenues EXPENDITURES Totalexpenditures Excess(Deficiency)ofRevenuesover Expenditures OTHER FINANCING SOURCES(USES 7otalotherfinancing sources(uses) Excess(deficiency)ofrevenuesand other Sources overexpenditures and otheruses Fund balance(deficit)atbeginning ofyear Adjustment Fund balance(deficit)atend ofyear * Categorize revenues and expenditures according to board's/com m ission's chartofaccounts ] he accom panying notes are an integralpartofthis statem ent Statem entc

31 STATE O F LO UISIANA Louisiana State B oard ofsocialw ork Exam iners DEPA RTM ENT O F HEA LTH & HO SPITALS Notes to the FinancialStatem ent A s ofand forthe yearended June 30,2001 NTRO D U CTIO N The Louisiana Stale Board ofsocialw ork Exam iners is a com ponentunitofthe State oflouisiana created wilhin the Louisiana Departm entofhealth and Hospitals,as provided by Louisiana Revised Statutes 37: The board/com m ission is com posed of 7 m em bers, appointed by the G overnor,w ho serve term s ofthree years. The board/com m ission is charged w ith the responsibility ofsafeguarding the pulbic health,safety and welfare ofthe people ofthis state againstunauthorized, unqualified and im properpractice ofsocialwork. O perations ofthe board/com m ission are funded w ith self-generated funds. A. SU M M A RY O F SIG N IFICA NT A CC O UNTING PO LICIES 1. Basis ofpresentation In A pril of 1984, the FinancialAccounting Foundation established the G overnm ental Accounting Standards Board (GASB) to promulgate generaly accepted accounting principles and reporting standards w ith respectto activities and transactions ofstate and localgovernm entalentities. The GASB has issued a Codification of G overnm entalaccounting and FinancialReporting Standards (GASB Codification). This codification and subsequentgasb pronouncemenfs are recognized as genera ly accepted accounting principles for state and local governm ents. financialstatem ents have been prepared in accordance w ith such principles. 2. R eporting _ ~ The accom panying G ASB Codification Section 2100 establishes criteria fordeterm ining the governm entalreporting entity and has defined the governm ental reporting entity lor the board/com m ission to be the State ol Louisiana because the state exercises oversight responsibility in that the governor appoints the com m ission m em bers and public service is rendered within the state's boundaries, q-he accom panying financialstatem ents presenttransactions ofthe Louisiana State Board ofsocialw ork Exam iners and therefore,are a part ofthe fund and accountgroup structure ofthe State oflouisiana. Annua ly tire State oflouisiana issues general-purpose financialstatem ents,w hich are audited by the Louisiana Legislative A uditor. 3. Fund Accountinq The board/com m ission uses funds and account groups to reporton its financialposition and the results ofits operations. Fund accounting is designed to dem onstrate legalcom pliance and to aid financial m anagem ent by segregating transactions relating to certain governm ent functions or activities. A fund is a separate accounting entity with a self-balancing setofaccounts. An accountgroup is a financialreporting device designed to provide accountability forcertain assets and liabilities thatare notrecorded in the fund because they do notdirectly affectnetexpendable financialresources.the funds presented in the financialstatem entare described as fo low s:

32 STATE O F LO UISIANA Louisiana State Board ofsocialw ork Exam iners DEPARTM ENT O F HEALTH & HO SPITALS Notes to the FinancialStatem ent A s ofand forthe yearended June 30,2001 G eneralfund The G eneralfund is classified as a governm entalfund. The G eneralfund is the generaloperating fund oftile board/com m ission and accounts fora lfinancialresources. Revenues are accounted for in this fund based upon the purpose forwhich they are to be spentand the m eans by which spending activities are contro led.g eneraloperating expenditures are paid from this fund. SpecialRevenue Fund(s SpecialRevenue Fund(s)are used to accountforthe proceedsofspecific revenue sourcesthatare lega ly restricted to expenditures forspecified purposes. AccountG roups The tw o accountgroups are not"funds", They are concerned only w ith the m easurem entoffinancial position, nol w ith m easurem ent of results of operations. Account groups are used to establish accounting controland accountability forgeneralfixed assets and generallong-term debt. a. G eneral Fixed Asset Account G roup - Fixed assets used in the governm entalfund type operations(generalfixed assets)are accounted forinthe generalfixed assetsaccountgroup,rather than in the governm entalfund, b. G eneral Long Term Debt Account Group payable expected to be financed from governm enta debtaccountgroup notin the governm entalfunds. - obligations such as com pensated absences funds are accounted forin the generallong-term 4. Basis ofaccountinq Basis ofaccounting refers to w hen revenues and expenditures are recognized and reported in the financialstatem ent. Basis ofaccounting relates lo the tim ing ofthe m easurem ents m ade, regardless of the m easurem ent focus applied. The board's/com m ission's records are m aintained on the m odified accrualbasis ofaccounting using the fo low ing practices: Revenues are recognized w hen they becom e m easurable and available as netcurrentassets Expenditures are genera ly recognized underthe m odified accrualbasis ofaccounting O therfinancing Sources N otapplicable

33 STATE O F LO UISIA NA Louisiana State B oard ofsocialw ork Exam iners DEPA RTM ENT O F H EA LTH & HO SPITA LS Notes to the FinancialStatem ent A s ofand forthe yearended June 30, Encum brances Encum brance accounting,under w hich purchase orders,contracts and other com m itm ents for tile expenditure ofm onies are recorded in orderto reserve thatportion ofthe applicable appropriation, is em ployed as an extension ofform albudgetary integration in the G eneralfund and SpecialRevenue Funds. Encum brances outstanding atyear-end are reported as reservations offund balances since they do notconstitute expenditures orliabilities. 6.TotalColum ns on Com bined Statem ents Totalcolum ns on the com bined statem ents are captioned M em orandum O nly to indicate thatthey are presented only to facilitate financialanalysis. Data in these colum ns do not presentfinancial position orresults ofoperations in conform ity w ith genera ly accepted accounting principles. Neither is such data com parable to a consolidation. B. B UD G ET PRA CTIC ES The Louisiana State Board ofsocialw ork Exam iners utilizes the fo low ing budgetary practices Annua ly the board/com m ission adopts a budgetthatis subm itted to the Departm entof Health and Hospitals. The budgetfor fiscalyear ended June 30,2001,w as adopted at the A pril2000 board m eeting,and is prepared and reported on a m odified accrualbasis ofaccounting. Although budget am ounts lapse at year-end, the board/com m ission retains its unexpended fund balance to fund expenditures of the succeeding year. The budget am ounts on Statem ent C reflect the am ended adopted budgets forthe fiscalyearended June 30,2001. There were amendment(s)made to the budget. (There should be a reconciliation ofany non-gaap budgetamountson StatementC to the amounts on Statem entb,using the excess ofrevenues and othersources overexpenditures and otheruses figuresasthe basisofthe reconciliation.) The fo low ing individua year-ended Ifunds had actualexpenditures overadopted budgeted expenditures forthe (lastday ofyourfiscalyear): Fund TYEg. Endinq Fund Balanc. e ~DeficitJ C. DEPOSITS W ITH FINANCIAL INSTITUTIONS AND INVESTMENTS (Ifalagency cash and investm ents are deposited in the State Treasury,disregard Note C. )

34 STATE O F LO UISIANA Louisiana State Board ofsocialw ork Exam iners DEPA RTM ENT O F H EA LTH & HO SPITA LS Notes to the FinancialStatem ent A s ofand forthe yearended June 30, D EPO SITS W ITH FINA N C IA L INSTITUTIO N S For reporting purposes,deposits w ith financialinstitutions include savings, dem and deposits,tim e deposits,and certificates of deposit. Under state law the Louisiana State Board of SocialW ork Exam iners m ay depositfunds w ithin a fiscalagent bank selected and designated by the Interim Em ergency Board. Further,the Board/Com m ission m ay investin tim e certificates ofdeposilofstate banks organized underthe law s oflouisiana,nationalbanks having theirprincipaloffice in the state oflouisiana,in savings accounts orshares ofsavings and loan associations and savings banks and in share accounts and in share certificate accounts offedera ly orstate chartered creditunions. Deposits in bank accounts are stated atcost,w hich approxim ates m arket. Understate law federal deposit insurance or the pledge of securities owned by the fiscalagent bank m ust secure these deposits. The m arketvalue ofthe pledged securities plus the federaldepositinsurance m ustata l tim es equalthe am ounton depositw ith the fiscalagent. These pledged securities are held in fhe nam e ofthe pledging fiscalagentbank in a holding orcustodialbank.the deposits atjune 30, 2001, w ere secured as fo low s: Deposits in bank accounts Cas ~ h Deposits in bankaccounts perbalance sheet $ 91, Certificates O ther _ofd~o _ osij.(describg} Total $ 213, $ $ 305, Bank balances: 1. Insured or co lateralized w ith securities held by the entity or its agency in the ~[~tg 's nam e 2.Collateralized with securities held by the pledging institution's trust departm ent or agentin the entity's nam e 3. Unco lateralized, including any securities held forthe entity butnotin entity's nan~ , _. q-otalbank balances $ 91, $ 213, $ $ 305, Note: The "TotalBank Balances"w ilnotnecessarily "equalthe "Deposits in Bank Account per Balance Sheet". The fo low ing is a breakdow n by banking institutions,program, accountnum berand am ountofthe bank balances show n above:

35 STATE O F LO UISIANA Louisiana State B oard ofsocialw ork Exam iners DEPARTM ENT O F HEALTH & HO SPITALS Notes to the FinancialStatem ent A s ofand forthe yearended June 30,2001 Total B a nkin cl[q.stjtutit9 n_ Hancock Bank A _ n&southbank. Hancock Bank _ Sayings CDs CDs Pr EEQg~#m A m ount $. 79, _ , _ _ ~ 59,o9 o.oo $ 305, W ere unco latera zed securities fitting the description in (3)above during the yeargreaterthan at (lastday ofyourfiscalyear)? Ifyes,attach a statementlisting the amount(s)and a reason forthis occurrence. Ifnot,proceed Cash in state treasury and petty cash are not required to be reported in the note disclosure. However,to aid in reconciling am ounts reported on the balance sheetto am ounts reported in this note,listbelow any cash in treasury and petty cash thaiare included in the balance sheet: Cash in State Treasury $ Petty cash $ 2. INV ESTM EN'[S Upon im plem entation ofg ASB Statem ent31,reported am ountand fairvalue w iloften be the sam e num ber. lhe accounts as authorized by by the agency). board/commission does(doesnot)maintain (note legalprovisions authorizing nvestm ent nvestm enl Investm ents can be classified according to the level of risk to the entity. Using the fo lowing categories,listeach type ofinvestm entdisclosing the carrying am ount,m arketvalue,and applicable category ofrisk. ~ Ca o~y.1-insured orregistered in the entity'sname,orsecuritiesheld by the entity oritsagenti.n the entity's nam e Ca Qb~ ow 2 -Uninsured and unregistered with securities held by the counterparty's trustdepartment oragentinthe entity~ name Category 3 - U nsecured and unregistered w ith securities held by the counterparty,or by its trust depadmentoragentbutnotin the entity~sname NO TE: If during the year the briefly slate thecause(s) am ount of investm ents reported in category 3 w as greater than at (lastday ofyourfiscalyear)attach a statementto thateffectand