L E G ISL A T IV E A U D IT O R

Transcription

1 ST A T E O F L O U ISIA N A L E G ISL A T IV E A U D IT O R Public Safety Services Departm entofpublic Safety and C orrections Parish and M unicipalm otorvehicle Sales and Use Tax Escrow Fund State oflouisiana Baton Rouge,Louisiana June Financialand C om pliance A uditd ivision D anielg.k yle,p h.d.,c PA,C FE L egislati ve A uditor

2 LEG ISLATIVE A UDIT A DVISO RY CO UNCIL M EM BERS Representative Francis C.Thom pson, A cting Chairm an and Vice C hairm an SenatorRobed J.Barham Senator W ilson E.Fields SenatorThom as A.G reene Senator C raig F.Rom ero Representative F.C harles M cm ains,jr Representative Edw in R.M urray Representative W arren J.Triche,Jr. LEG ISLATIVE A UDITO R DanielG.Kyle,Ph.D.,CPA,ClF:E DIRECTO R O F FINA NCIA L A ND CO M PLIA NCE A UDIT A lbertj.r obinson,jr.,c PA This docum entis produced by the Legislative Auditor,State oflouisiana,post O fi ce Box 94397, Baton Rouge, Louisiana <,)7 in accordance w ith Louisiana Revised Statute 24:513. Tw enty-fourcopies ofthis public docum ent were produced atan approximate costof$ This materialwas produced in accordance w ith the standards forstate agencies established pursuantto R.S. 43:31. A copy ofthis docum entis available on the Legislative Auditor's W eb site atw w w.la.state.la.us. In com pliance with the Am ericans W ith Disabilities Act, if you need special assistance relative to this docum ent,orany docum ents ofthe Legislative A uditor, please contactw ayne "Skip"Irwin,D irectorofadm inistration,at

3 PUB LIC SA FETY SERVIC ES D EPA RTM ENT O F PU B LIC SA FETY A N D C O RR ECTIO NS PA R ISH A N D M UN IC IPA L M O TO R V EH IC LE SA LES A N D USE TA X ESC R O W FU N D STA TE O F LO U ISIA NA Baton Rouge,Louisiana FinancialStatem ents and IndependentAuditor's Reports As ofdecem ber31,1998,and forthe Period January 1,1998,through Decem ber31,1998 W ith Required Supplem entary Inform ation and Supplem entalinform ation Schedule Underthe provisions ofstate law,this reportis a pubfic docum ent. A copy ofthis report has been subm itted to the G overnor,to the Attorney G eneral,and to other public oficials as required by state law. A copy ofthis reporthas been m ade available for public inspection at the Baton Rouge ofice of the Legislative Auditor. June

4 PUBLIC SA FETY SERVIC ES DEPA RTM ENT O F PUBLIC SA FETY A ND CO RRECTIO NS PARISH A ND M UNICIPAL M OTO R VEHICLE SA LES A ND USE TAX ESCROW FUND STATE O F LO UISIA NA FinancialStatem ents and IndependentA uditor's Reports As ofdecem ber31,1998,and forthe Period January 1,1998,through Decem ber31,1998 W ith Required Supplem entary Inform ation and Supplem entalinform ation Schedule C O NTENTS Statem ent Page N o ndependenta uditor's Report on the FinancialStatem ents 3 FinancialStatem ents *Parish and M unicipalm otor Vehicle Sales and Use Tax Escrow Fund: Statem entofassets and Liabilities A rising From C ash Transactions Statem entofco lections,distributions,and Unsettled Balances Notes to the FinancialStatem ents Supplem entary Inform ation Required by the G overnm entalaccounting Standards Board - Required Supplem entary Inform ation - Year2000 Issues 10 Schedule Page N o Supplem entalinform ation Schedule - Schedule ofdistributions

5 PUBLIC SA FETY SERVIC ES D EPA RTM ENT O F PU B LIC SA FETY A ND CO RRECTIO NS PA RISH A ND M UNIC IPA L M O TO R VEHIC LE SA LES A N D USE TA X ESC R O W FU N D STA TE O F LO UISIA NA C ontents.decem ber CONTENTS (CONT.) Exhibit O therreportrequired by G overnm enta uditing Standards - Report on C om pliance and on InternalC ontrolo ver FinancialReporting Based on an Auditofthe FinancialStatem ents A A ppendix M anagem ent's Response and Corrective Action Plan to the Finding and Recom m endation A

6 I)ANIEL G.KYLE,PI1,I).,CPA,CFE I.EGISI.ATIVE AUI)I'IO R OFFICE OF L E G ISLA T IV E A U D ITO R STA TE O F LO U ISIAN A BATON ROUGE,LOUISIANA June NO R331TII1RI)$3REITI POS'I OFFICF }IOX TF,LEPIlONE:(225) FACSIMILE: (225) ndependenta uditor's Repor on the FinancialStatem ents CO LO NEL W ILLIAM R.W HITTING TO N PUBLIC SA FETY SERVIC ES DEPARTM ENT O F PUBLIC SAFETY A ND CO RRECTIO NS PA RISH A ND M UNIC IPA L M O TO R VEHICLE SA LES A ND USE TAX ESCROW FUND STATE O F LO UISIA NA Baton Rouge,Louisiana W e have audited the accom panying statem ent of assets and liabilities arising from cash transactions ofthe Parish and M unicipalm otorvehicle Sales and Use Tax Escrow Fund,an agency fund within the Louisiana Departm entofpublic Safety and Corrections,Public Safety Services,as ofdecem ber31,1998,and the related statem entofco lections,distributions,and unsettled balances forthe period January 1,1998,through Decem ber31,1998,as listed in the foregoing table ofcontents. These financialstatem ents are the responsibility ofm anagem entof Public Safety Services. O ur responsibility is to express an opinion on these financial statem ents based on ouraudit. W e conducted our audit in accordance w ith genera ly accepted auditing standards and the standards applicable to financialaudits contained in G overnm enta uditing Standards,issued by the C om ptro ler G eneralof the United States. Those standards require that we plan and perform the auditto obtain reasonable assurance aboutw hetherthe financialstatem ents are free of m aterial m isstatem ent. An audit includes exam ining, on a test basis, evidence supporting the am ounts and disclosures in the financialstatem ents. A n audit also includes assessing the accounting principles used and significant estim ates m ade by m anagem ent,as w e l as evaluating the overa lfinancial statem ent presentation. W e believe that our audit provides a reasonable basis forouropinion. A s described in note 1,the directorofpublic Safety Services serv es as co lectorand distributor of parish and m unicipal m otor vehicle sales and use taxes. As such,the accom panying statem ents presentinform ation only on the activities ofthe co lectorofm otorvehicle sales and use taxes included in the Parish and M unicipalm otorvehicle Sales and Use Tax Escrow Fund, an agency fund w ithin the Louisiana Departm entofpublic Safety and Corrections,Public Safety Serv ices. Furtherm ore,the accom panying statem ents have been prepared on the basis of cash receipts and cash disbursem ents,w hich is a com prehensive basis of accounting other than genera ly accepted accounting principles.

7 C O LO N EL W ILLIA M R.W H ITTING TO N PUBLIC SA FETY SERVICES D EPA RTM ENT O F PU B LIC SA FETY A ND CO RRECTIO NS PA RISH A ND M UNICIPA L M O TO R VEHICLE SA LES A ND USE TA X ESCROW FUND STATE O F LO UISIA NA AuditReport,Decem ber31,1998 LEGISLATIVE A UDITOR In ouropinion,the accom panying financialstatem ents referred to previously presentfairly,in a l m aterialrespects,the assets and liabilities arising from cash transactions ofthe Parish and M unicipal M otor Vehicle Sales and Use Tax Escrow Fund of Public Safety Services as of Decem ber31,1998,and the co lections,distributions,and unsettled balances ofthe Parish and M unicipal M otor Vehicle Sales and Use Tax Escrow Fund for the period January 1, 1998, through D ecem ber31,1998,on the cash basis ofaccounting described in note 1. In accordance w ith G overn m ent Auditing Standards, w e have also issued a report dated June 2, 1999,on our consideration ofthe Parish and M unicipalsales and Use Tax Escrow Fund's internalcontrolover financialreporting and our tests of its com pliance w ith law s and regulations. O ur audit w as m ade for the purpose of form ing an opinion on the accom panying financial statem ents. The accom panying supplem ental inform ation schedule listed in the table of contents is presented forthe purpose ofadditionalanalysis and is nota required part ofthe financialstatem ents ofthe Parish and M unicipalm otorvehicle Sales and Use Tax Escrow Fund ofpublic Safety Services. Such information has been subjected to the procedures applied in the auditofthe financialstatem ents and,in ouropinion,is fairly stated in a lm aterialrespects in relation to the financialstatem ents taken as a w hole. The Year 2000 supplernentary inform ation on page 10 is not a required part of the basic financialstatem ents butis supplem entary inform ation required by the G overnm entalaccounting Standards Board. W e have applied certain lim ited procedures,w hich consisted principa ly of inquiries of m anagem ent regarding the m ethods of m easurem ent and presentation of the supplem entary inform ation. How ever,w e did notauditthe inform ation and do notexpress an opinion on it. In addition,w e do notprovide assurance thatthe Louisiana Departm entofpublic Safety and Corrections,Public Safety Serv ices is or w ilbecom e Year 2000 com pliant,that Public Safety Serv ices'year2000 rem ediation efforts w ilbe successfulin w hole orin part,or that parties w ith w hich Public Safety Services does business are or wilbecom e Year 2000 com pliant. itted SH E:THC :RC L:d D anielg.kyle,c PA,CFE Legislative A uditor ~VEHTkX]

8 Statem enta PUBLIC SA FETY SERVIC ES DEPA RTM ENT O F PUBLIC SA FETY A ND CO RRECTIO NS PA RISH A ND M UNIC IPA l.m O TO R VEHICLE SA LES A ND USE!TA X ESCRO W FUND STATE O F LO UISIA NA Statem entof A ssets and Liabilities A rising From Cash Transactions,Decem ber31,1998 ASSETS Cash (note 2) LIABILITIES Due to taxing bodies and others $ $21.108,185 The accom panying notes are an integralpartofthis statem ent 5

9 Statem entb PUBLIC SA FETY SERVIC ES D EPA RTM ENT O F PU B LIC SA FETY A N D C O R R EC TIO N S PA RISH A ND M UNICIPA L M O TO R VEHIC LE SALES A ND USE"TAX ESCROW FUND STATE O F LO UISIANA Statem entof C ollections,d istributions, and Unsettled Balances Forthe Period January 1,t998, through Decem ber31,1998 UNSETTLED BA LA NCES A T JA NUA RY 1,1998 A DJUSTM ENT TO BEG INNING BALANCE - PRIOR YEAR ADJUSTMENT (note 3) UNSETTLED BA LANCE AT JANUARY 1,1998,AS ADJUSTED CO LLECTIONS DISTRIBUTIONS (Schedule 1} UNSE1-FLED BA LA NCES AT DECEM BER 31,1998 DUE TO TAXING BO DIES AND O THERS $15, (262,718,274) $21,108,185 The accom panying notes are an integralpartofthis statem ent. 6

10 PUBLIC SA FETY SERVICES DEPA RTM ENT O F PUBLIC SA FETY A ND CO RRECTIO NS PA RISH A ND M UNIC IPA L M O TO R VEHICLE SA LES A ND USE TA X ESC RO W FUND STA TE O F LO UISIA NA Notes to the FinancialStatem ents As ofdecem ber31,1998,and forthe Period January 1,1998,through Decem ber31,1998 NTRO DUCTIO N As provided by Louisiana Revised Statute (R.S.)47:531,the directorofpublic Safety Services is designated as vehicle com m issionerofthe state. The vehicle com m issioneris responsible forthe co lection and distribution ofparish and m unicipalm otorvehicle sales and use taxes,as w e las the adm inistration and enforcem entofthe "Vehicle Registration License Tax"underthe provisions ofc hapter4 ofsubtitle IIofTitle 47 ofthe Louisiana Revised Statutes of1950. SUM M ARY O F SIG NIFICA NT ACCO UNTING PO LICII-S A. BASIS O F PRESENTATIO N The Parish and M unicipalm otorvehicle Sales and Use Tax Escrow Fund is established to reflect the co lections im posed by law, distributions pursuant to such law, and unsettled balances due various taxing bodies and others. The accom panying financial statem ents have been prepared on the cash basis of accounting w ith co lections recognized w hen received and distributions reflected w hen paid. As such, the accom panying financialstatem ents do notreflectthe receivables and related payables associated w ith tax co lection activities. B. R EPO RTIN G ENTITY 2. CA S H R.S.47:303(B)(3)(b)(i)requiresthe Parish and MunicipalMotorVehicle Salesand Use Tax Escrow Fund to be audited annua ly. A ccordingly, the accom panying financial statem ents reflectfinancialactivity ofpublic Safety Serv ices relating only to the vehicle com m issioner's responsibility as co lectorand distributorofparish and m unicipalm otor vehicle sales and use taxes. A m ounts included in these financialstatem ents are also included in the r)epartm ent of Public Safety and C orrections, Public Safety Serv ices' annualfiscalreport. At Decem ber31,1998,the Parish and M unicipalm otorvehicle Sales and Use Tax Escrow Fund has cash (book balance)totaling $21,108,185. State law requires thatalcolections be deposited in the state treasury. Cash balances held and contro led by the state treasurerare secured from risk by the state treasurerthrough separate custodialagreem ents, and the risk

11 PU B LIC SA FETY S ERV IC ES D EPA RTM ENT O F PUBLIC SA FETY A ND CO RRECTIO NS PARISH A ND M UNICIPAL.M OTO R VEHICLE SA LES A ND USE TAX ESCROW FUND STA TE O F LO UISIA NA Notes to the FinancialStatements (Concluded) disclosures required by genera ly accepted accounting principles are included w ithin the state's generalpurpose financialstatem ents. 3. PRIO R PERIO D A DJUSTM ENT An adjustment of $1,145,904 was made to increase beginning unsettled balances from $15,394,697 to $16,540,601. This was necessary to correctan errorthatwas m ade several years ago w hen the basis ofthese financialstatem ents changed from accrualto cash. This adjustmenthasno efecton the currentand prioryears'reported sales and use tax colections and distributions but sim ply corrects the fund's beginning cash balance to reflect the actual unsettled am ountheld by the state treasury atjanuary 1,1998. CO URT DECISIO N REGA RDING M OTO R VEHICLE SA LES TA X CO LLECTIO NS On April14,1998,the Supreme CourtofLouisiana issued a judgmentupholding the Nineteenth JudicialDistrictCourt's decision thatdeclared R.S.47:303(B)(3)(a)and (b)(i)unconstitutional. These statutes require that localtax co lectors enter into an agreem ent to use the Vehicle Com m issionerofthe O fi ce ofm otorvehicles as theiragentto co lectlocalm otorvehicle sales and use taxes. The Caddo-.ShreveportSales and Use Tax Com m ission,the centralco lectorof taxes for Caddo Parish,filed suitfor a declaratory judgment asserting that itwas being unconstitutiona ly prohibited from co lecting loca ly levied sales and use tax on m otorvehicles by the operation ofr.s.47:303. The low ercourt found forthe Caddo-Shreveport Sales and Use Tax Commission,and the Supreme Court upheld the lowercourt's decision.the judgment becam e finalon April28,1998. Therefore,afterApril28,the legislature cannotrequire thatthe O fi ce ofm otorvehicles co lectlocaltaxes againstthe wishes ofthe centraltax co lectorofany parish, or to designate a co lection agent for the Com m ission. Although this ruling could efectively elim inate a lparish and m unicipality tax co lections and distributions m ade currently by the O fi ce ofm otorvehicles,the ofi ce had currentcontracts to co lectm otorvehicle sales and use taxes w ith a ltaxing authorities in the state atdecem ber31,1998.

12 SUPPLEM ENTARY INFO RM ATIO N REQ UIRED BY THE G OV ERNM ENTA L A CCO UNTING STA N DA RDS BO A RD The fo low ing pages contain supplem entary inform ation as required by TechnicalBuletin 98-1, issued by the GovernmentalAccounting Standards Board (GASB) in October The provisions of the G ASB technical bu letin, efective for financial statem ents dated after O ctober31, 1998, require disclosures in the notes to the financial statem ents about the governm entalentity's readiness in addressing Year2000 issues forits com putersystem s and other electronic equipm ent. In M arch 1999, GASB issued Technical Bu letin 99-1, w hich a lowed the disclosure ofyear2000 issues in required supplem entary inform ation.

13 PUBLIC SA FETY SERVIC ES D EPA RTM ENT O F PUB LIC SA FETY A ND CO RRECTIO NS PA RISH A ND M UNICIPA L M O TO R VEHIC LE SA LES A ND USE TA X ESCROW FUND STA TE O F LO UISIA NA REQ UIRED SUPPLEM ENTA RY INFO RM ATIO N A s ofdecem ber31,1998,and forthe Period January 1,1998,through Decem ber31,1998 YEA R 2000 ISSUES The Year2000 issue is the resultofshortcom ings in m any electronic data processing system s and otherequipm entthatm ay adversely afectthe Parish and M unicipalm otorvehicle Sales and Use Tax Escrow Fund as early as fiscalyear1999. In orderto address the Year2000 issues in Louisiana,the G overnor issued Executive O rder M JF "Com puter System s Com pliance," w hich m andates that each agency and departm ent in Louisiana evaluate the im pact of the Year 2000 on their current inform ation system s,determ ine which system s m ustbe corrected orreplaced,and initiate corrective action thatw ilbe in efecton orbefore July 1,1999. The fo lowing stages have been identified as necessary to address Year2000 issues Awareness Stage--Encompasses establishing a budgetand projectplan (forexample, a timeline orchartnoting majortasks and due dates)fordealing with the Year2000 issue. A ssessm ent Stage--W hen the organization begins the actualprocess ofidentifying a l ofits system s (preparing an inventory)and individualcomponents ofthe systems. An organization m ay decide to review a lsystem com ponents foryear2000 com pliance or through a risk analysis,identify only m ission-criticalsystem s and equipm ent--system s and equipm entcriticalto conducting operations--to check forcom pliance. Rem ediation Stage--W hen the organization actua ly m akes changes to system s and equipm ent.this stage deals prim arily w ith the technicalissues of converting existing system s orsw itching to com pliantsystem s.during this stage,decisions are m ade on how to m ake the system s orprocesses Year2000 com pliant,and the required system changes are m ade. Validation/Testing Stage--W hen the organization validates and tests the changes m ade during the conversion process.the developm entoftestdata and testscripts,the running oftest scripts,and the review oftest results are crucialfor this stage ofthe conversion process to be successful.ifthe testing results show anom alies,the tested area needs to be corrected and retested. 10

14 PUBLIC SA FETY SERVICES DEPA RTM ENT O F PUBLIC SA FETY A N D C O R R ECTIO NS PA RISH A ND M UNICIPA L M O TO R VEHICLE SA LES A ND USE TAX ESCROW FUND STA TE O F LO UISIA NA 1998 Required Supplementary Information (Concluded) M otorvehicle registration data are m aintained on the Departm entof Public Safety's O fice of M otorvehicle System. A ccounting data form otorvehicle registrations are m aintained on the DepartmentofPublic Safety'sCash Receipts Accounting System (CRAS). To comply with the executive orders,the associated applications ofthese and other departm entsystem s w ilbe assessed,rem ediated as needed,and validated/tested. At Decem ber 31, 1998,associated applications in the M otorv ehicle system and C RAS are in the validation/testing stage. This process is being perform ed in-house by the Departm ent of Public Safety and,therefore,the costis being absorbed by the departm ent. This process is expected to be com plete by July 1, No contractcom m itm ents to com plete the departm ent's Year2000 readiness existat Decem ber M anagem entofthe Departm entofpublic Safety believes thatthe process described above w il enable the departm entto be in com pliance w ith the executive orders in regard to the processing and recording ofm otorvehicle registration transactions and w ilthus enable its electronic data processing system s to process date and/or date-related inform ation correctly before,during, and afterjanuary 1,2000. How ever,because ofthe unprecedented nature ofthe Year2000 issue,its efects and the success ofrelated rem ediation,e forts w ilnetbe fu ly determ ined until the Year 2000 and thereafter. C onsequently, m anagem ent cannot guarantee that the departm ent's system s are orw ilbe ready,thatthe departm ent's rem ediation eforts w ilbe successfulin w hole or in part,orthat parties w ith w hom itdoes business w ilbe Year 2000 ready. 11

15 PUBLIC SA FETY SERVIC ES DEPA RTM ENT O F PUBLIC SA FETY A ND CO RRECTIO NS PA RISH A ND M UNICIPA L M O TO R VEHICLE SALES A ND USE TAX ESCROW FUND STATE O F LO UISIA NA SUPPLEM ENTA L INFO RM ATIO N SCHEDULE Forthe Period January 1,1998,to Decem ber31,1998 SCHEDULE O F DISTRIBUTIO NS Schedule 1 reflects the distributions ofparish and m unicipalm otorvehicle sales and use taxes to the various taxing authorities during the period January 1,1998,to Decem ber31,

16 S chedule 1 PUBLIC SA FETY SERVICES DEPA RTM ENT O F PUBLIC SA FETY A N D C O R R EC TIO NS PA RISH A N D M UNICIPA L M O TO R VEHIC LE SA LES A ND USE-"TA X ESC RO W FUND STATE O F LO UISIANA Schedule of Distributions Forthe Period January 1,1998, to Decem ber31,1998 Public Safety Services -co lection coats Ofi ce oflegislative Auditor TAXING A UTHORITY Acadia Parish: Acadia Parish SchoolBoard Acadia Padsh Police Jury Law Enforcem entdistrict--parish ofacadia City ofcrowley Tow n ofchurch Point Vilage ofestherwood Town ofiota Vilage ofm orse City ofrayne Vilage ofm erm entau City ofeunice A len Parish: A len Pariah Sales and Use lax A len Parish SchoolBoard and Police Jury City ofo akdale Tow n ofo berlin Tow n ofelizabeth Tow n ofkinder Ascension Parish: Ascension Parish SchoolBoard Ascension Parish Police Jury Ascension Parish Sales Tax DistrictNo.2 Ascension Parish Law Enforcem entdistrict City ofdonaldsonvile City ofg onzales W estascension HospitalService District EastAscension Drainage DistrictNo.1 Town ofsorrento $2,626, ,328 1,433, , ,896 57,955 7,818 32,878 10, ,481 8, , ,792 79,313 29,203 5, ,823,682 1,093, ,820 82, , ,101 72, , (Continued) 13

17 Schedule 1 PUBLIC SA FETY SERVIC ES DEPA RTM ENT O F PUBLIC SA FETY A ND CO RRECTIO NS PA RISH A ND M UNICIPA L M O TO R VEHIC LE SA LES A ND USE-"TA X ESC RO W FUND STATE O F LO UISIANA Schedule ofdistributions Forthe Period January 1,1998, to Decem ber31,1998 TAXING AUTHORITY (CONT.) Assum ption Parish: Assum ption Parish SchoolBoard Assum ption Parish Police Jury Assum ption Parish Road and Drainage District Tow n ofnapoleonvile Avoye les Parish: Avoyeles Parish SchoolBoard Avoye les Parish Police Jury Avoye les Law Enforcem entdistrict Tow n ofcottonport City ofbunkie Vilage ofplauchevile Vilage ofm oreauvile City ofmarksvile Town ofsim m esport Town ofm ansura Beauregard Parish: Beauregard Parish SchoolBoard Beauregard Parish Police Jury Beauregard Parish Law Enforcem entdistrict C ity ofderidder Tow n ofm erryvile Bienvile Parish: Bienvile Parish SchoolBoard Bienvile Parish Police Jury Tow n ofringgold Town ofarcadia Town ofg ibstand Vilage ofcastor BossierParish: BossierParish SchoolBoard BossierParish Police Jury BossierCity Tow n ofplain Dealing $836, , , , , ,205 18,196 66,618 4,366 14,681 91,451 30, ,069, , , ,280 32, , ,817 22,293 51,089 21, ,328, ,904 2,020, (Continued) 14

18 Schedule 1 PUBLIC SA FETY SERVICES DEPA RTM ENT O F PUBLIC SA FETY A N D C O R R EC TIO N S PA RISH A N D M UNICIPA L M O TO R VEHIC LE SA LES A ND USE TAX ESCROW FUND STATE O F LO UISIA NA Schedule ofdistributions Forthe Period January 1,1998, to Decem ber31,1998 TAXING AUTHORITY (CONT.) BossierParish:(Cont.) Town ofbenton Town ofhaughton City ofshreveport Caddo Parish: Caddo Parish SchoolBoard Caddo Parish Sales Tax DistrictNo.1 Caddo Parish Law Enforcem entd istrict Town ofo ilcity Town ofvivian City ofshreveport Town ofm ooringsport Tow n ofg reenw ood Village ofrodessa Tow n ofblanchard Calcasieu Parish: Calcasieu Parish SchoolBoard Calcasieu Law Enforcem entdistrict Calcasieu Parish Sales Tax DistrictNo.1 Calcasieu Parish Sales Tax DistrictNo.2 City oflake Charles City ofsulphur Town ofiowa City ofdeq uincy City ofw estlake Tow n ofvinton Calcas{eu Parish SchoolBoard Tax Catcasieu Parish Police Jury Tax Caldw e lparish: Caldwe lparish SchoolBoard Caldwe lparish Police Jury Town ofcolum bia $101, , ,192,906 1,193, ,482 15,075 88,464 6,556,686 11,776 36,936 2, ,704, ,029 1,671,876 1,568,062 2,206, ,225 65,839 98, ,541 79, ,911 1,833, , , (Continued) 15

19 Schedule 1 PUBLIC SA FETY SERVICES DEPA RTM ENT O F PUBLIC SA FETY A ND CO RRECTIO NS PA RISH A ND M U NICIPA L M O TO R VEHICLE SA LES A ND USE"TAX ESCRO W FUND STATE O F LO UISIA NA Schedule ofdistributions Forthe Period January 1,1998, to Decem ber31,1998 TAXING AUTHORITY (CONT.) Catahoula Parish: Catahoula Parish SchoolBoard Catahoula Parish Police Jury Claiborne Parish: Claiborne Parish SchoolBoard Claiborne Parish SchoolBoard -Police Jury Tow n ofhaynesvile Tow n ofhom er Vilage ofjunction City Concordia Parish: Concordia Parish SchoolBoard Concordia Parish Police Jury Concordia Parish Hospital Tow n ofvidalia Town offerriday DeSoto Parish: DeSoto Parish SchoolBoard DeSoto Parish Police Jury Tow n oflogansport City ofm ansfield Tow n ofstonewall Vilage ofsouth M ansfield Vilage ofg rand Cane Tow n ofkeachi EastBaton Rouge Parish: EastBaton Rouge Parish EastBaton Rouge Parish SchoolBoard EastBaton Rouge Parish Sew erdistrict EastBaton Rouge Parish Streets City ofbaton Rouge C ity ofbaker City ofzachary $308, , ,246 91,430 77, , ,907 76, , , ,217 21,358 69,502 27, , ,882,676 6,513,024 3,256,511 3,256,511 9,182, , (Continued) 16

20 Schedule 1 PUBLIC SA FETY SERVICES DEPA RTM ENT O F PUBLIC SA FETY A ND C O RR ECTIO NS PA RISH A N D M UNICIPA L M OTO R V EHICLE SA LES A ND USi-TA X ESC RO W FUND STATE O F LO UISIANA Schedule of D istributions Forthe Period January t,1998, to Decem ber31,1998 TAXING AUTHORITY (CONT.) EastCarrollParish: EastCarro lparish SchoolBoard EastCarro lparish Police Jury Town oflake Providence EastFeliciana Parish -EastFeliciana Parish SchoolBoard and Police Jury Evangeline Parish: Evangeline Parish SchoolBoard -Tax Departm ent Evangeline Parish SchoolBoard -W aste Tax Town ofvile Plate Town ofbasile Town ofm am ou Vilage ofpine Prairie Vilage ofchataignier Vilage ofturkey Creek Evangeline Parish Road and Drainage DistrictNo.1 Franklin Parish: Franklin Parish SchoolBoard Franklin Parish Police Jury Franklin Parish Law Enforcem entdistrict Town ofw innsboro Tow n ofw isner Vilage ofg ilbert G rantparish: G rantparish SchoolBoard G rantparish Police Jury G rantparish Law Enforcem ent Tow n ofcolfax Tow n ofpo lock Vilage ofg eorgetow n $198,980 99, , , ,475 28,993 58,608 16,214 6, , , ,774 53,097 12, , , ,460 18,416 4, (Continued) t7

21 Schedule 1 PUBLIC SA FETY SERVICES DEPA RTM ENT O F PUBLIC SA FETY A ND CO RRECTIO NS PA RISH A ND M UNICIPA l.m O TO R VEHICLE SA LES A ND USE TAX ES CRO W FUN D STA TE O F LO UISIA NA Schedule ofd istributions Forthe Period January 1,t998, to Decem ber 3t,1998 TAXING AUTHORITY (CONT.) Iberia Parish: Iberia Parish SchoolBoard Iberia Parish Council-G arbage Iberia Parish CouncilDistrictNo.2 Iberia Parish Council-M osquito District Tow n ofdelcam bre City ofnew Iberia City ofjeanerette Vilage ofloreauvile Ibervile Parish: Ibervile Parish Police Jury Ibervile Parish SchoolBoard Ibervile Parish Police Jury -G eneralfund Ibervile Parish Solid W aste Tow n ofst,g abriel Jackson Parish: Jackson Parish SchoolBoard Jackson Parish Road Tax Jackson Parish Sales Tax Town ofjonesboro Vilage ofhodge Vilage ofeasthodge Vilage ofnorth Hodge Town oferos Jeferson Parish: Jeferson Parish Council Jeferson Parish SchoolBoard Jeferson F'adsh Law Enforcem entdistrict $2,356, , , ,565 8, ,351 93, , , , , , , ,496 90,070 11,132 1,175 1,746 2,902 19,040,100 9,520, (Continued) 18

22 Schedule 1 PUBLIC SA FETY SERVIC ES DEPA RTM ENT O F:PUBLIC SA FETY A N D C O R R ECTIO N S PA RISH A ND M UNICIPA L.M O TO R VEHIC LE SA LES A ND USE TAX ES CROW FUND STATE O F LO UISIANA Schedule of Distributions Forthe Period January 1,1998, to Decem ber 31,1998 TAXING AUTHORITY (CONT.) Jeferson Davis Parish: Jeferson Davis Parish SchoolBoard Tow n ofw elsh Town ofelton City ofjennings Tow n oflake Arthur Tow n offenton Lafaye te Parish: Lafayete Parish SchoolBoard -Tax Division Lafayette Parish SchoolF~oard -Bonds City oflafayete Tow n ofduson City ofcarencro Town ofyoungsvile Tow n ofscott Lafayete Parish Police Jury Tow n ofbroussard Lafourche Parish: Lafourche Parish SchoolBoard Lafourche Parish Law Enforcem entsubdistrictno.1 Lafourche Parish Road Sales Tax DistrictNo.4 C ity ofthibodaux Town oflockport Lafourche Parish SchoolBoard -G olden M eadow Lafourche Parish Road Sales Tax DistrictNo.2 LaSa le Parish: LaSa le Parish SchooTBoard Town ofjena Town ofo la $1,049,020 89,652 35, ,869 79, ,850,932 1,925,465 4,150,516 68, , , ,842 1,316, ,903,124 1,162, , ,541 41,232 27, ,125 45,783 22,383 (Continued) 19

23 Schedule 1 PUBLIC SA FETY SERVICES DEPA RTM ENT O F PUBLIC SA FETY A N D C O R R EC TIO N S PA RISH A ND M UNICIPA L M O TO R VEHIC LE SALES AND USE TAX ESCROW FUND STATE O F LO UISIANA Schedule of Distributions Forthe Period January t,1998, to Decem ber31,1998 TAXING AUTHORITY (CONT.) Lincoln Parish: Lincoln Parish SchoolBoard Lincoln Parish Police Jury City ofruston Tow n ofdubach Tow n ofg ram bling Livingston Parish: Livingston Parish SchoolBoard -Sales Tax Livingston Parish SchoolBoard -Law Enforcem ent Livingston Parish SchoolBoard -SpecialSales Tax Livingston Parish Road M aintenance City ofdenham Springs Town oflivingston Tow n ofw alker Vilage ofalbany Town ofspringfield Livingston Parish Gravity Drainage DistrictNo.1 Livingston Parish G ravity Drainage DistrictNo.5 Livingston Parish Gravity Drainage DistrictNo.6 M adison Parish: M adison Parish Sales Tax Fund M adison Parish Police Jury M adison Parish Law Enforcem entdistrict City oftalulah Vilage ofrichm ond M orehouse Parish: M orehouse Parish SchoolBoard M orehouse Parish Police Jury M orehouse Law Enforcem entdistrict City ofbastrop Vilage ofm errouge Vilage ofbonita Vilage ofco linston $929, , ,321 11, ,402, , ,794 1,701, ,886 24,259 78,679 9,131 13, ,274 56, ,147 75,391 71, , , , , ,989 10,792 1, (Continued) 20

24 Schedule I PUBLIC SA FETY SERVIC ES DEPA RTM ENT O F PUBLIC SA FETY A N D C O R R ECTIO NS PA RISH A ND M UNICIPA L M O TO R VEHIC LE SA LES A ND USE TA X ESC RO W FUND STA TE O F LO UISIA NA Schedule ofd istributions Forthe Period January 1,1998, to Decem ber31,1998 TAXING AUTHORITY (CONT.) Natchitoches Parish: Natchitoehes Parish SchoolBoard Natchitoches Parish Police Jury City ofnatchitoches Town ofcam pti Vilage ofrobeline V(lage ofc larence Vilage ofnatchez O rleans Parish: O rleans Parish SchoolBoard C ity ofnew O rleans New Orleans RegionalTransitAuthority O uachita Parish: O uachita-m onroe SchoolBoard O uachita Parish Polic.e Jury O uachita Parish Fire Protection O uachita Parish SchoolBoard City ofmonroe City ofw estm onroe Town ofsterlington Tow n ofrichwood W esto uachita SchoolDistrict Plaquem ines Parish: Plaquem ines Parish SchoolBoard Plaquem ines Parish Council Pointe C oupee Parish: Pointe Coupee Parish SchoolBoard Pointe Coupee Parish Sales Tax Fund Tow n ofnew Roads Vilage ofm organza Tow n oflivonia Vilage offordoche $790, , , ,746 3, ,558,435 9,264, ,012,049 1,441,607 1,441,607 1,661,999 2,822, ,086 20,531 11, , , ,923 10,658 19,664 13,273 (Continued)

25 Schedule 1 PUBLIC SA FETY SERVIC ES DEPA RTM ENT O F PUB LIC SA FETY A ND CO RRECTIO NS PA RISH A ND M UNICIPA L M OTO R VEHICLE SALES A ND USE TAX ESCROW FUND STA TE O F LO UISIA NA Schedule of D istributions Forthe Period January 1,1998, to Decem ber 31,1998 TAXING AUTHOR I'Y (CONT.) Rapides Parish: RapJdes Parish Sales Tax Fund Rapides Parish Sales Tax District Rapides Parish SchoolBoard Rapides Parish (City)Sates Tax Rapides Parish (Pinevile) City ofg lenm ora Tow n oflecom pte Rapides Sales Tax -Ba l Rapides Sales Tax -Boyce Vilage ofw oodworth Red RiverParish: Red RiverParish SchoolBoard Red RNerParish Police J~ry Red RiverParish Law Enforcem entdistrict Tow n ofc oushatta Vilage ofha lsum m it Richland Parish: Richland Parish SchoolBoard Richland Parish Police Jury Richland Parish Law Enforcem entdistrict Tow n ofrayvile Town ofm angham Tow n ofdelhi Sabine Parish: Sabine Parish SchoolBoard Sabine Parish Police Jury Sabine Law Enforcem entdistrict Tow n ofm any Vilage ofpleasanthil Vilage offlorien Tow n ofzw o le Vilage ofconverse $1,965, ,625 1,965,722 1,099, ,983 23,915 14,739 21,509 10, , , ,645 19, , , ,668 46,387 7, , , ,713 36,230 8,638 8,044 24, (Continued)

26 Schedule t PUBLIC SA FETY SERVIC ES DEPA RTM ENT O F PUBLIC SA FETY A N D C O R R ECTIO NS PARISH AND M UNICIPAL M OTO R VEHICLE SA LES A ND USE TAX ESCROW FUND STA TE O F LO UISIA NA Schedule ofd istributions Forthe Period January 1,1998, to Decem ber 31,1998 TAXING AUTHORI'I'Y (CONT.) St.Bernard Parish: St Bernard Parish Sales Tax Departm ent St.Bernard Parish Police Jury St.Bernard Law Enforcem entdistrict St.Charles Parish: St.Charles Parish SchoolBoard St,Charles Parish Council St.Helena Parish: St.Helena Parish SchoolBoard St.Helena Parish Police Jury Tow n ofg reensburg St,Jam es Parish: St.Jam es Parish SchoolBoard St.Jam es Parish Council-G ram ercy St.Jam es Parish Council-Lutcher St.Jam es Parish Council St John the BaptistParish: St John the BaptistParish SchoolBoard St.John the BaptistParish Council St John the BaptistSew erage District St Landry Parish: St.Landry Parish SchoolBoard St.Landry Parish Solid W aste Com m ission City ofo pelousas Town ofarnaudvile City ofeunice Tow n ofsunset Town ofportbarre Vilage ofcankton Town ofg rand Couteau Town ofkrotz Springs Town ofw ashington Tow n ofm elvile $2,941, , ,221 1,584, , , , , ,445 21,036 29,320 1,197, , ,950 1,240, , ,284 26, ,708 27,242 89,584 4,204 9,646 21,126 13,727 20,654 (Continued) 23

27 Schedule I PUBLIC SA FETY SERVICES DEPA RTM ENT O F PUBLIC SAFETY A N D C O R R ECTIO NS PARISH A ND M UNICIPAL M OTO R VEHICLE SA LES A ND USE TA X ESC RO W FUND STATE O F LO UISIANA Schedule ofdistributions Forthe Period January 1,1998, to Decem ber31,1998 TAXING AUTHORnY (CONT.) St M artin Parish: St M artin Parish SchoolBoard Town ofarnaudvlile City ofbreaux Bridge Tow n ofhenderson City ofst.m artinvile V illage ofparks St.M ary Parish: St.M ary Parish Police Jury St.M ary Parish SchoolBoard St.M ary Parish Law Enforcem entdistrict Morgan City St.M ary Parish -W ards 5 and 8 St.M ary Parish -W ards 1,2,3,4,7,and 10 St.M ary Parish Sales -6 and 9 St.Tam m any Parish: St.Tam m any Parish SchoolBoard St.Tam m any Parish Council St.Tam m any Parish Law Enforcem entdistrict St.Tam m any JailFacilities and Com plex City ofcovington Town ofabita Springs Vilage offolsom Tow n ofm adisonvile City ofmandevile Tow n ofpearlriver City ofs idel Vilage ofsun $1,620,814 9, ,599 8,936 80, ,620,807 1,342, ,303 74,132 90,923 88, ,511,636 4,534, ,953 1,134, ,414 41,2t3 52,749 46, ,889 71, , (Continued)

28 Schedule 1 PUBLIC SA FETY SERVICES DEPA RTM ENT O F PUB LIC SA FETY A N D C O R R ECTIO NS PARISH AND M UNICIPAL M OTO R VEHICLE SA LES A ND USE TAX ESCROW FUND STATE O F LO UISIA NA Schedule of Distributions Forthe Period January 1,t998, to Decem ber 31,1998 TAXING AUTHORITY (CONT.) Tangipahoa Parish: Tangipahoa Parish SchoolBoard Tangipahoa Parish Council Town ofam ite City City ofhamm ond Tow n ofindependence City ofponchatoula Town ofroseland Tow n ofkentwood Vilage oftangipahoa Vilage oftickfaw Tenses Parish: Tensas Parish SchoolBoard Tensas Perish PoTice Jury Tensas Parish Law Enforcem entdistrict Tow n ofnewe lten Town ofst.joseph Terrebonne Parish: Terrebonne Parish -Sales Tax Fund 1 Percent Terrebonne Parish -Sales Tax Fund 3/4 Percent Terrebonne Parish -Sales Tax Fund 1/4 Percent Terrebonne Parish Sales Tax Fund Union Parish: Union Parish SchoolBoard Union Parish Police Jury Union Parish Law Enforcem entdistrict Town offarm erviije Town ofbernice Tow n ofm arion Vilage ofjunction City $3,143,438 1,571,522 73, ,985 53, ,074 21,605 47,573 4, , ,018 22,409 10, ,650,148 3,091, , , , ,988 34,086 26,272 8, (Continued) 25

29 Schedule 1 PU B LIC SA FETY S ERV IC ES D EPA RTM ENT O F PUB LIC SA FETY A ND CO RRECTIO NS PA RISH A ND M UNIC IPA L M O TO R VEHIC LE SA LES A ND USE TAX ESC RO W FUND STATE O F LO UISIA NA Schedule of Distributions Forthe Period January 1,1998, to Decem ber31,1998 TAXING AUTHORI'I'Y (CONT.) V erm ilion Parish: Verm ilion Parish SchoOlBoard Verm ilion Parish Police Jury Verm ilion Parish Sherif City ofabbevile Tow n ofdelcam b~e Town oferath City ofkaplan Vilage ofm aurice "fown ofg ueydan Vernon Parish: Vernon Parish SchoolBoard Vernon Parish Police Jury Tow n ofleesvile Vilage ofrosepine Vilage ofnew Llano Town ofhornbeck W ashington Parish: W ashington Parish SchoolBoard Bogalusa SchoolBoard W ashington Parish Police Jury W ashington Law Enforcem entdistrict Town offranklinton C ity ofbogalusa Vilage ofangle Vilage ofvarnado W ebsterparish: W ebsterparish SchoolBoard City ofm inden Town ofcotton Valey City ofspringhil Tow n ofc u len Vi lage ofsarepta $916,602 1,374, , ,540 18,492 33,733 67,311 25, ,446,601 1,084,950 66,821 9,855 20, , , , ,194 48, ,985 9,920 8O2 1,699, ,208 12, ,861 14, (Continued)

30 Schedule 1 PUBLIC SA FETY SERVIC ES DEPA RTM ENT O F PUBLIC SA FETY A N D C O R R ECTIO NS PA RISH A ND M UNICIPA L M OTO R VEHICLE SA LES A ND USE TA X ESC RO W FUND STA TE O F LO U ISIA NA Schedule ofd istributions Forthe Period January 1,1998, to Decem ber31,1998 TAXING AUTHORR'Y (CONT.) W ebsterparish:(cont.) Tow n ofsibley Vilage ofdixie Inn W estbaton Rouge Parish: W estbaton Rouge Parish Police Jury W estbaton Rouge Parish SchoolBoard W estbaton Rouge Parish +Sales Tax DistrictNo.1 W estbaton Rouge Parish Fire DistrictNo.1 W estcarro lparish: W estcarrorfparish SchoolBoard W estcarro lparish SchoolBoard and Police Jury Tow n ofoak G rove W estfeliciana Parish: W estfeliciana Parish SchootBoard W estfeliciana Parish SchoolBoard and Police Jury W estfeliciana Parish SchoolBoard -Sales Tax DistrictNo.1 Tow n ofst.francisvile W inn Parish: W inn Parish SchoolBoard W inn Parish Police Jury City ofw innfield $32, , , , , , , ,094 94, , ,359 73,393 TotalDistributions $ ,274 (Concluded)

31 O THER REPO RT REQ UIRED BY G O VERNM EN T A UDITIN G S TA NDA RDS The fo low ing pages contain a reporton com pliance w ith law s and regulations and on internal controls as required by G overnm enta uditing Standards,issued by the C om ptro lerg eneralof the United States. This report is based solely on the audit of the financialstatem ents and includes,w here appropriate,any reportable conditions and/or m aterialw eaknesses in internal controlorcom pliance m atters thatw ould be m aterialto the presented financialstatem ents.

32 )ANII!I,G.KYI,E,PII.D.,CI'A,CFE I,EGISI,ATIVI~AUI)ITOR OFFICE OF LE G ISLA TIV E A U D ITO R STATE OF I,OUISIANA BA TON ROU GE,LOU ISIAN A June N ORTII"1IIIRI)$1REF'I POST OF}qCE }~OX 9439? TliLI'PIIONE:(225) :ACSIM IH ~: (225) Repo~ ~on Com pliance and on InternalControlO verfinancia Reoortino Based on an Auditofthe FinancialStatem ents C O LO NEL W ILLIAM R.W HITTING TO N PUBLIC SAFETY SERVICES DEPA RTM ENT O F PU BLIC SA FETY A N D C O R R ECTIO NS PA RISH A ND M UNICIPA L.M OTO R VEHICLE SA LES A ND USE TAX ESC RO W FUND STATE O F LO UISIA NA Baton R ouge,louisiana W e have audited the accom panying statem ent of assets and liabilities arising from cash transactions ofthe Parish and M unicipalm otorvehicle Sales and Use Tax Escrow Fund,an agency fund w ithin the Louisiana Departm entofpublic Safety and Corrections,Public Safety Services,as ofdecem ber31,1998,and the related statem entofco lections,distributions,and unsettled balances for the period January 1, 1998,through Decem ber 31, 1998, and have issued ourreport thereon dated June 2,1999. W e conducted our audit in accordance w ith genera ly accepted auditing standards and G overnm ent Auditing Standards, issued by the Com ptro ler G eneral of the United States. Those standards require thatwe plan and perform the auditto obtain reasonable assurance aboutw hetherthe financialstatem ents are free ofm aterialm isstatem ent. C om pliance Com pliance w ith law s and regulations applicable to the Parish and M unicipalm otor Vehicle Sales and Use Tax Escrow Fund is the responsibility ofthe departm ent's m anagem ent. As part ofobtaining reasonable assurance aboutw hetherthe financialstatem ents are free ofm aterial m isstatem ent,w e perform ed tests ofthe departm ent's com pliance w ith certain provisions of law s,regulations,and contracts,noncom pliance w ith w hich could have a directand m aterial efecton the determ ination ofthe financialstatem entam ounts. However,providing an opinion on compliance with those provisions was notan objective ofouraudit,and,accordingly,we do notexpress such an opinion. The results ofourtests disclosed no instances ofnoncom pliance thatare required to be reported herein underg overnm entauditing Standards.

33 LEGISLATIVE A UDITOR PUB LIC SA FETY SERV IC ES DEPA RTM ENT O F PUBLIC SA FETY A ND CO RRECTIO NS PA RISH A ND M UNICIPA L M O TO R VEHICLE SA LES A N D U SE TA X ESC RO W FU N D STATE O F LO UISIA NA Com pliance and InternalControlReport June 2,1999 Page 2 nternalcontrolo ver FinancialReporting In planning and perform ing our audit,w e considered Public Safety Services'internalcontrol over financial reporting in order to determ ine our auditing procedures for the purpose of expressing ouropinion on the financialstatem ents and notto provide assurance on the internal controloverfinancialreporting. H ow ever,w e noted a m atterinvolving the internalcontrolover financialreporting and its operation thatw e considerto be a reportabte condition. Reportable conditions involve m atters com ing to our attention relating to significant deficiencies in the design oroperation ofthe internalcontroloverfinancialreporting that,in ourjudgment,could adversely afectthe departm ent's ability to record,process,sum m arize and report financialdata consistent w ith the assertions of m anagem ent in the financialstatem ents. The reportable condition is described in the fo low ing paragraphs: Incom plete Vehicle A pplication Form s For the ninth consecutive year, the O fice of M otor Vehicles processed incom plete application form s for vehicle registration. The assessm ent and distribution of m otor vehicle sales tax is based upon the dom icile of the taxpayer purchasing the m otor vehicle. The taxpayer's residence, including w hether the taxpayer lives w ithin the corporate lim its ofa m unicipality,determ ines the taxing authority entitled to the avails of the m otor vehicle sales tax. Based on that inform ation,the O fi ce of M otor Vehicles assigns the dom icile code foreach parish and m unicipality. During 1998,the ofi ce processed 825,199 m otor vehicle applications and co lected $267,285,858 in parish and m unicipality taxes. O f137 item s tested from this population, representing $38,675 in parish and m unicipality tax co lections,13 incom plete vehicle application forms (9.49% exception rate)were accepted and processed by the ofice. The incom plete vehicle application form s,w hich m ay have been prepared by vehicle dealers, financialinstitutions, or O fi ce of M otor Vehicles'operators, either failed to identify the taxpayer's residence as being inside oroutside ofthe corporate lim its ofthe m unicipality,failed to identify the taxpayer's parish ofresidence,orshowed a postofice box as the address w ith no reference to a physicaladdress. W hen vehicle application form s are notproperly com pleted,em ployees ofthe ofi ce are notequipped w ith the necessary data needed to provide reasonable assurance thata l

34 LEGISLATIVE A UDITOR PUBLIC SA FETY SERVICES DEPA RTM ENT O F PUBLIC SA FETY A ND CO RRECTIO NS PA RISH A ND M UNICIPA L M O TO R VEHIC LE SA LES A ND US[-TA X ESC RO W FUND STATE O F LO UISIA NA Com pliance and internalcontrolreport June 2,1999 Page 3 dom icile codes are correctly assigned. This increases the possibility thattaxes could be im properly assessed ordistributed to the w rong taxing authority. Incom plete vehicle application form s should be returned to the taxpayer, and fees should be herd by the ofice in a suspense status untilthe form is properly com pleted by the taxpayerorhis representative. Each taxing authority should be required to furnish the ofice with an updated listofstreets within its boundaries to ensure properdom icile coding,a process w hich could be autom ated by the ofice. M anagem ent of the departm ent concurred w ith the finding and recom m endation and has taken corrective action (see Appendix A). A m aterialw eakness is a condition in w hich the design or operation of one or m ore ofthe internalcontrolcom ponents does notreduce to a relatively low levelthe risk thatm isstatem ents in am 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 al course of perform ing their assigned functions. O ur consideration of the internalcontrolover financial reporting w ould not necessarily disclose a l m atters in the internal control that m ight be reportable conditions and,accordingly,w ould notnecessarily disclose a lreportable conditions thatare also considered to be m aterialw eaknesses. How ever,w e believe thatthe reportable condition described previously is nota m aterialw eakness. This report is intended for the inform ation and use of Public Safety Services and its m anagem entand is notintended to be and should notbe used by anyone otherthan these specified parties. By provisions ofstate law,this report is a public docum ent,and ithas been distributed to appropriate public ofi cials. /~ spectfulysubmitalj" SHE:THC :RCL:d WEH~AX] DanielG.Kyle,CPA,CFE Legislative A uditor

35 A ppendix A M anagem ent's R esponse and C orrective A ction P lan to the Finding and R ecom m endation

36 "M IKE"FOSTER,JR GOVERNOR M ay 24,1999 I)PS NANCY VAN NORTW ICK UNOERSEC~E'[A~'I D r.d anielo.k yle,c PA,CFE Legislative A uditor Slate of I.ouisiana p.o.box 9439? Balon Rouge,Louisiana "? P,e: Single A uditfinding M ay 7,1999 D eard r.k yle The O ffice of M otorv ehicleshascontinued to signifieantly reduce the errorrate w ith additional Iraining of em ployees,perform ing an in-house auditon allfiles processed w ith a Cam eron Parish address,obtaininp,funding approvalforan upgrade ofem ployees w ho processm otorvehicle w ork,and having the com putersystem program m ed to provide an editfield forthe required "yes/no"indication of addressesw ithin the corporate lim itsof a m unicipality. W e concurw ith the findings;however,itshould be noted thateven though the parish nam e was notlisted on the application,the dm nicile code forthe appropriate parish w asused, and the correctam ountof salestax w ascollected in a sam pling oiinstances. }:orthe ninth consecutive year,itnm stagain be em phasized thatuntilsuch tim e asall parishes/m unicipalitiesare able to provide listingsof allfire roadsan d streetsthatfallw ithin their respectivejurisdictions,itwilremainimpossibleto ensure100 percentaccuracy in collecting taxes. U ndersecrelary N V N :vea c: K ay C ovington,o M V Sandra l,ee,c ontroller O FFICE O F M ANAG EM ENT & FINANC E, P.O.BOX 6S614,BATO N RO UG E, LO UISIANA (225}