Alexandria Regional Port Authority - LLA Default...

ALEXANDRIA REGIONAL PORT AUTHORITY

ALEXANDRIA, LOUISIANA

APRIL 30, 2007

Under provisions of state law, this report is a publicdocument. Acopy of the report has been submitted tothe entity and other appropriate public officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.

Release Date /0//Q/6 7

Alexandria Regional Port Authority

April 30, 2007

Table of Contents

Exhibit PageIndependent Auditor's Report 1-2

Required Supplemental InformationManagement's Discussion and Analysis 3-7

Basic Financial Statements 8Statement of Net Assets A 9Statement of Revenues, Expenses, and

Changes in Net Assets B 10Statement of Cash Flows C 11

Notes to Basic Financial Statements 12-18

Other Report Required by GovernmentAuditing Standards 19

Report on Internal Control Over Financial Reportingand on Compliance and Other Matters Based onan Audit of Financial Statements Performed inAccordance with Government Auditing Standards 20-22

Schedule of Findings and Questioned Costs 23

PAYNE, MOORE & HERRINGTON, LLP

CERTIFIED PUBLIC JCCOllimNlSEstablished 1945

Independent Auditor's Report

Board of CommissionersAlexandria Regional Port Authority

We have audited the accompanying financial statements of the business-type activities of the AlexandriaRegional Port Authority, Alexandria, Louisiana, as of and for the year ended April 30, 2007, as listed in thetable of contents. These financial statements are the responsibility of the Alexandria Regional PortAuthority's management. Our responsibility is to express an opinion on these financial statements based onour audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in alt material respects, therespective financial position of the business-type activities of the Alexandria Regional Port Authority as ofApril 30,2007, and the respective changes in financial position, and its cash flows thereof for the year thenended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated August 31,2007,on our consideration of the Alexandria Regional Port Authority's internal control over financial reporting andourtests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements andother matters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion on theinternal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be considered in assessing theresults of our audit.

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The management's discussion and analysis on pages 3 through 7 is not a required part of the basicfinancial statements but is supplementary information required by accounting principles generally acceptedin the United States of America. We have applied certain limited procedures, which consisted principally ofinquiries of management regarding the methods of measurement and presentation of the requiredsupplementary information. However, we did not audit the information and express no opinion on it.

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Certified Public Accountafits

August 31,2007

Required Supplemental Information

Management's Discussion and Analysis

Alexandria Regional Port AuthorityApril 30, 2007


Our discussion and analysis of the Alexandria Regional Port Authority's (the Authority) financialperformance provides an overview of the Authority's financial activities for the fiscal year ended April30, 2007. Please read in conjunction with the Authority's basic financial statements, which begin onpage 8.

Financial Highlights

• The Authority's net assets decreased by $231,947 or 2% during the year ended April 30, 2007.

Using this Annual Report

This annual report consists of Management's Discussion and Analysis, the basic financial statements,and notes to the financial statements. Management's Discussion and Analysis provides a narrative ofthe Authority's financial performance and activities for the year ended April 30, 2007. The basicfinancial statements provide readers with a broad overview of the Authority's finances, in a mannersimilar to a private-sector business. The notes provide additional information that is essential to a fullunderstanding of the data provided in the basic financial statements.

The basic financial statements consist of three statements:

• The Statement of Net Assets presents information on all of the Authority's assets and liabilities,with the difference between the two reported as net assets. Over time, increases or decreasesin net assets may serve as a useful indicator of whether the financial position of the Authority isimproving or deteriorating.

• The Statement of Activities presents information showing how the Authority's net assetschanged during the most recent fiscal year. All changes in net assets are reported as soon asthe underlying event giving rise to the change occurs, regardless of the timing of related cashflows. Certain revenues and expenses are reported in this statement that will result in cashflows in future periods.

• The Statement of Cash Flows presents information showing how the Authority's cash changedduring the most recent fiscal year. It shows the sources and uses of cash.



Financial Analysis of the Authority as a Whole

A summary of net assets is presented below.

Table 1Net Assets

2007 2006 % ChangeCurrent and other assets $ 454,596 $ 543,202 (16%)Capital assets, net of depreciation 11.206.848 11.304.558 (1%)

Total Assets 11,661,444 11,847,760 (2%)

Current liabilities 51,867 11,752 341 %Noncurrent liabilities 49.939 44.423 12%

Total Liabilities 101,806 56,175 81%

Invested in capital assets 11,206,848 11,304,558 (1 %)Unrestricted net assets 352,790 487.027 (28%)

Total Net Assets $ 11.559.638 $ 11.791.585

Invested in capital assets represent the Authority's long-term investment in capital assets, net ofaccumulated depreciation, and is not available for current operations.

A summary of changes in net assets is presented below.

Table 2Changes in Net Assets

2007 2006 % ChangeOperating revenues

(Charges for services, leases, and other) $ 393,000 $ 315,043 25%Non-operating revenue

(Government subsidies and interest income) 99.620 99.480 1%Total Revenues 492,620 414,523 19%

Operating expensesDepreciation 264,391 261,335 1 %Other 613.341 476.235 29%

Total Expenses 877.732 737.570 19%

Capital contributions 153,165 - 100%

Change in net assets $ (231.947) $ (323.047) 28%



Capital Assets

At April 30, 2007 and 2006, the Authority had $13,737,059 and $13,570,378, respectively, invested incapital assets, including land and improvements, roads, port facilities, and furniture, fixtures, andequipment. Additions to capital assets during the year ended April 30, 2007, consisted of officeequipment of $1,512, equipment of $22,763, and construction in progress of $142,406 for a total of$166,681.

Non-Current Liabilities

The Authority's non-current liabilities consist of accrued compensated absences for vacation and sickleave. These liabilities increased by $5,516 during the fiscal year, from $44,423 at the beginning of theyear to $49,939 at the end of the year.

Other Currently Known Facts, Decisions, or Conditions

It is very difficult to project from year to year the profitability of the Port due to a majority of the incomethat reflects profitability is thru-put fees. The lease income and grants provide the basis for theoperating expenses.

Where appropriate, the tenants share the bulk of the maintenance except for replacement of the capitalassets. During the 2007-2008 fiscal year, the Port will have increased its warehouse space from 15,000sq ft. to 60,000 sq. ft. This will increase the income for the Port and give the tenant the opportunity toincrease its inventory.

In management's opinion, the substantial cash balance that the Port has acquired will be maintainedunder present operating projections, except for cash injection for capital expenditures.

Contacting the Authority's Financial Management

This financial report is designed to provide a general overview of the Authority's accountability for themoney it receives. If you have questions about this report or need additional financial information,contact the Alexandria Regional Port Authority's office at 600 Port Road, Alexandria, Louisiana.

Basic Financial Statements

Alexandria Regional Port AuthorityStatement of Net Assets

April 30, 2007

Exhibit A

AssetsCurrent Assets

Cash $ 57,216Investments 321,671Accounts receivable 57,562Other assets 5,571Prepaid expenses 12.049

Total Current Assets 454,069

Noncurrent AssetsDeposits 527Capital assets - net of accumulated depreciation 11,206.848

Total Noncurrent Assets 11.207,375

Total Assets 11,661,444

LiabilitiesCurrent Liabilities

Accounts payable 51,595Payroll related payables 272

Total Current Liabilities 51,867

Noncurrent LiabilityCompensated absences 49.939

Total Liabilities 101.806

Net AssetsInvested in capital assets, net of related debt 11,206,848Unrestricted 352,790

Total Net Assets $ 11,559.638

The accompanying notes are an integral part of the financial statements.

Alexandria Regional Port AuthorityStatement of Revenues, Expenses, and Changes in Net Assets

For the Year Ended April 30, 2007

Exhibit B

Operating RevenuesLease revenueCharges for services

Total Operating Revenues

Operating ExpensesDepreciationContract laborSalaries and wagesInsurancePort maintenance and operatingOffice operating costPort marketingTravelHospitalizationRetirementAuditingAuto expensePayroll taxesMembership and duesOffloading and uploading chargesLegalMiscellaneous

Total Operating Expenses

Operating Loss

Non-Operating RevenuesGrant revenueInterest income

Total Non-Operating Revenues

Income (Loss) Before Contributions

Capital Contributions

Net Decrease in Net Assets

Net Assets - Beginning of Year

Net Assets - End of Year


126,940266,060

393,000

264,39136,883

143,80736,17737,96222,92868,61340,58020,19715,7107,2357,700

11,3444,197

143,22816,090

690877,732

(484,732)

80,00019.62099,620

(385,112)

153.165

(231,947)

11.791.585

$ 11,559,638

10

Alexandria Regional Port AuthorityStatement of Cash Flows


Cash Flows from Operating ActivitiesReceived from operationsPayments for payroll and related expensesPayments for goods and services

Net Cash Used in Operating Activities

Cash Flow from Noncapital Financing ActivitiesGovernment subsidies - operating grants

Net Cash Provided by Noncapital Financing Activities

Cash Flows from Capital and Related Financing ActivitiesPurchase of fixed assets and constructionCapital contributions

Net Cash Used in Capital and Related Financing Activities

Cash Flow from Investing ActivitiesInterest incomeRedemption of investments

Net Cash Provided by investing Activities

Decrease in Cash

Cash, Beginning of Year

Cash, End of Year

Reconciliation of Operating Loss toNet Cash Provided by Operating Activities

Operating lossAdjustments to reconcile operating loss to net cash used

in operating activities:DepreciationChanges in assets and liabilities:

Accounts receivableAccounts payablePrepaid expensesPayroll related payablesAccrued vacation and sick leave

Net Cash Used in Operating Activities


11

Exhibit C

393,073(149,783)(434,248)(190,958)

80,000

80,000

(139,404)125,888(13,516)

19,62038.74258,362

(66,112)

123,328

$ 57.216

$ (484,732)

264,391

13,89912,986(2,870)

(148)5,516

$ (190,958)

Notes to Basic Financial Statements

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1. Organization and Significant Accounting Policies

The Alexandria Regional Port Authority, created by Act 1987, No. 440 of the Legislature of the State ofLouisiana, is a political subdivision of the State. Its territorial limits are concurrent with that of the municipallimits of the City of Alexandria. The Authority is governed by a board of commissioners, composed of eightmembers, who serve without compensation. The City of Alexandria appoints five members of the board,and the parishes of Rapides, Grant, and Avoyelles each appoint one member.

The financial statements of the Alexandria Regional Port Authority ("Authority") have been prepared inconformity with accounting principles generally accepted in the United States of America (GAAP) as appliedto governmental units. The Governmental Accounting Standards Board (GASB) is the acceptedstandard-setting body for establishing governmental accounting and financial reporting principles. The moresignificant of the Authority's accounting policies are described below.

Reporting Entity

GASB Statement No. 14, The Reporting Entity, as amended, established criteria for determining thegovernmental reporting entity and component units that should be included within the reporting entity. Underprovisions of this Statement, the Authority is considered a primary government, since it is a special purposegovernment that is legally separate and is fiscally independent of other state or local governments. As usedin GASB Statement No. 14, fiscally independent means that the Authority may, without the approval orconsent of another governmental entity, determine or modify its own budget, levy its own taxes or set ratesor charges, and issue bonded debt. Based upon these same criteria, the Authority has no component units.

Basis of Presentation

The Authority has adopted the provisions of GASB Statement No. 34 and GASB Statement No. 37.These statements established standards for external financial reporting for all state and governmentalentities, which includes a statement of net assets, a statement of revenues, expenses and changes in netassets, and a statement of cash flows. It requires the classification of net assets into three components -invested in capital assets, net of related debt; restricted; and unrestricted. These classifications are definedas follows:

• Invested in capital assets, net of related debt: This component of net assets consists of capitalassets, net of accumulated depreciation, and reduced by the outstanding balances of bonds,mortgages, notes, or other borrowings that are attributable to the acquisition, construction orimprovement of those assets. The Authority has no debt attributable to its capital assets.

• Restricted net assets: This component of net assets consists of constraints imposed bycreditors (such as through debt covenants), contributors, laws or regulations of othergovernments, or through constitutional provisions or enabling legislation. The Authority has norestricted net assets.

• Unrestricted net assets: This component of net assets consists of net assets that do not meetthe definition of "restricted" or "invested in capital assets, net of related debt."

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Fund Accounting

The accounts of the Authority are organized on the basis of an enterprise fund. Enterprise funds areused to account for operations that are financed and operated in a manner similar to private businessenterprises - where the intent of the governing body is that the costs (expenses, including depreciation) ofproviding goods and services to the general public on a continuing basis be financed primarily through usercharges or where the governing body has decided that periodic determination of revenues earned,expenses incurred, and/or net income is appropriate for capital maintenance, public policy, managementcontrol, accountability, or other purposes.

Basis of Accounting

The accounting and financial reporting treatment applied to a fund is determined by its measurementfocus. Enterprise funds follow GAAP prescribed by the Governmental Accounting Standards Board andFinancial Accounting Standards Board's Standards issued prior to November 30, 1989. Enterprise fundsare accounted for on a flow of economic measurement focus. With this measurement focus, all assets andliabilities associated with the operation of these funds are included on the balance sheet. The operatingstatement presents increases (revenues) and decreases (expenses) in total net assets.

The accrual basis of accounting is utilized by enterprise funds. Under this method, revenues arerecorded when earned and expenses are recorded at the time liabilities are incurred.

Enterprise funds distinguish operating revenues and expenses from non-operating items. Operatingrevenues and expenses generally result from providing services and producing and delivering goods inconnection with its principal ongoing operations. The principal operating revenues of the Authority arecharges for services and lease revenue. Operating expenses include costs of providing services,administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting thisdefinition are reported as non-operating revenues and expenses.

Cash

Cash includes amounts in demand deposits as well as short-term investments with a maturity datewithin three months of the date acquired by the government.

Capital Assets

All purchased capital assets are stated at cost. The capitalization threshold for assets is set at $500.Donated capital assets are valued at their estimated fair market value on the date received. Depreciation ofall exhaustible capital assets is charged against operations. Depreciation is computed over the estimateduseful lives ranging from 5 to 50 years using the straight-line method.

Compensated Absences

Vested or accumulated vacation and sick leave are recorded as expenses and liabilities as thebenefits accrue to employees. No liability is recorded for compensated absences that relate to futureservices or that are contingent on a specific event that is outside the control of the employer and employees.

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Estimates

The preparation of financial statements in conformity with accounting principles generally accepted inthe United States of America requires management to make estimates and assumptions that affect thereported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenses during the reporting period.Accordingly, actual results could differ from those estimates.

2. Cash and Investments

Under state law, the Authority may deposit funds with a fiscal agent bank organized under the laws ofthe State of Louisiana, the laws of any other state in the Union, or the laws of the United States. TheAuthority may invest in United States bonds, treasury notes, or certificates and time deposits of state banksorganized under Louisiana law and national banks having principal offices in Louisiana.

At year-end, the carrying amount of the Authority's deposits was $378,887, and bank balances were$381,861 A summary of cash and cash equivalents and investments is presented below:

Cash $ 57,216Investments - certificates of deposit 321.671

$ 378,887

These deposits are stated at cost, which approximates market. Under state law, these deposits (or theresulting bank balances) must be secured by federal deposit insurance or the pledge of securities owned bythe fiscal agent bank. The market value of the pledged securities plus the federal deposit insurance must atall times equal the amount of deposit with the fiscal agent.

Custodial credit risk is the risk that in the event of a bank failure, the Authority's deposits may not bereturned. As of April 30, 2007, the Authority's bank balance of $381,861 was not exposed to custodial creditrisk in that $360,191 was insured and $21,670 was collateralized by securities held by the pledging banks inthe Authority's name.

3. Capital Assets

Balance Adjustment/ Balance05/01/06 Additions Retirements 04/30/07

Land and improvements $ 3,241,492 $ $ $ 3,241,492Infrastructure-roads 325,125 - - 325,125Office equipment 5,903 1,512 - 7,415Port facilities 9,670,517 - - 9,670,517Furniture and fixtures 9,141 - - 9,141Equipment 297,295 22,763 - 320,058Construction in progress 20.905 142.406 : 163.311

Total Capital Assets 13,570,378 166,681 - 13,737,059

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Less: Accumulated DepreciationLand and improvements -Infrastructure-roads 111,304 6,634 - 117,938Office equipment 4,428 1,382 - 5,810Port facilities 2,065,418 241,763 - 2,307,181Furniture and fixtures 8,624 165 - 8,789Equipment 76,046 14,447 - 90,493Construction in progress : : : :

Total Accumulated Depreciation 2.265.820 264.391 : 2.530.211Net Capital Assets $ 11,304,558 $ (97,710) $ - $ 11,206,848

Depreciation expense included in the financial statements for the fiscal year is $264,391.

Capital assets are depreciated using the straight- line method over the following estimated useful lives:

Infrastructure - roads 50 yearsPort facilities 40 yearsFurniture and fixtures 7 yearsEquipment 5-40 years

4. Compensated Absences

Beginning EndingBalance Additions Reductions Balance

Compensated absences $ 44,423 $ 5,516 $ - $ 49,939

5. Retirement Plan Contribution

The Authority deposits directly into an investment account ten percent (10%) of gross salary for itsemployees as a retirement benefit.

6. Lease and Commitments

On September 1,1998, the Authority entered into a lease agreement with Terral Riverservice, Inc. tolease a bulk cargo facility from the Authority. The term of the lease was for five years expiring August 31,2003, with the option of renewal at the end of the five year lease terms (another five year term for anadditional nine (9) five (5) year options). Under the terms of the original lease agreement, TerralRiverservice agreed to pay an annual rental of $118,000 payable on a quarterly basis; provided however,that in consideration for advances made by Terral Riverservice, Inc., they shall be due a credit of $20,000each year for ten years or until the balance is paid in full. In the event the lease is not renewed, anyremaining balance of the credit is forfeited by Terral Riverservice, Inc.

On September 1, 2003, Terral Riverservice, Inc. exercised their option to renew the lease for anadditional five years expiring on August 31, 2008.

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On or about September 1, 2004, and in connection with the new dome construction project, TerralRiverservice, Inc. advanced an additional $200,000 to the Authority (bringing the balance to $280,000).Under the terms of the amended lease agreement, Terral Riverservice agreed to pay a recalculated annualrental of $120,700, payable on a quarterly basis; provided however, that in consideration for additionaladvances made by Terral Riverservice, Inc., they shall be due a credit of $28,000 each year for a period often (10) years or until the balance is paid in full. In the event the lease is not renewed, any remainingbalance of the credit is forfeited by Terral Riverservice, Inc.

Provided this lease agreement is still in full force and effect and provided Terral Riverservice, Inc. shallnot be in uncorrected default of this agreement at the end of the primary term or any extension of thisagreement, Terral Riverservice, Inc. shall have the option to extend this lease agreement for eight additionalconsecutive terms of five years each.

Terral Riverservice, Inc. agreed to pay all taxes or any other governmental charges, utilities, andinsurance. Terral Riverservice, Inc. also agreed to maintain and repair leased property and keep it in goodcondition.

Current annual rental (through August 31, 2007) is comprised of the following:

Annual lease for cargo facility $ 118,0004% of $856,000 34,240CPI average 2,700Annual credit for construction advance (28.000)

$ 126,940

Minimum future rental payments to be received by the Authority under the present lease are asfollows:

FiscalYear End Gross Credit Net4/30/08 156.060 28.000 128.060

Total $ 156,060 $ 28,000 $ 128,060

Effective September 1, 2008, assuming the lease agreement is extended, the annual leasepayments will be recalculated to include an increase equal to the average Consumer Price Index (CPI) forthe last five years. It is expected that the lease payments will increase, but not materially, over the currentminimum future rental payments as indicated above for the year 2008.

7. Risk Management

The Authority is exposed to various risks of loss related to torts, theft or damage and destruction ofassets, errors and omissions, injuries to employees, and natural disasters. The Authority carriescommercial insurance as coverage for such occurrences except errors and omissions. The Authority coversall other losses, claims, settlements, and judgments, if any. Claim expenditures and liabilities are reportedwhen it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Noclaim expenditures or liabilities are reported in the accompanying financial statements.

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8. Commitments

The Authority is in the process of undertaking an improvement to its existing warehouse space of15,600 square feet by adding approximately 30,750 square feet addition to its existing transit shed plusapproximately 15,600 square feet hard surface storage area and a gantry crane track extension. The totalof new construction of approximately 46,350 square feet plus the existing 15,600 square feet results inapproximately 61,950 square feet. This addition is necessary due to the loading and unloading ofshipments of products going to local industry. The Authority contracted with two companies namedBargeLink and PHT International, Inc., to be the point of transfer for these products. The implementation ofthis expansion will allow for more storage capacity and also help to improve cargo handling in the transfer ofthe sacks. The total cost of the shed expansion is projected to be $2,020,761 of which 90% or $1,818,685is requested from the Louisiana Port Construction and Development Priority Program. The Authority willprovide 10% of the construction cost or $202,076 plus non-construction related costs including advertising,administration, geotech, engineering, inspection, etc., which is estimated at $244,972 making the totalestimated cost of the project $2,265,733. The Red River Waterway Commission will provide $447,048 tocover the authority's cost of the ten percent (10%) construction costs of $202,076 and engineering andrelated costs of $244,972.

Construction on the expansion of the transit shed began in June 2007. Actual expenses incurred as of April30, 2007 are $163,311. Total reimbursements as of April 30, 2007, are $153,165 of which $27,277 werereceivable at year-end. The reimbursements thus far have been exclusively from Red River WaterwayCommission and the difference paid by the Alexandria Regional Port Authority.

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Other Report Required byGovernment Auditing Standards

19

Report on Internal Control Over Financial Reportingand on Compliance and Other Matters Based on an

Audit of Financial Statements Performed in AccordanceWith Government Auditing Standards

20


CERTIFIED PllflllC ttCIIITJUTCEstablished

Report on Internal Control over Financial Reporting and on Complianceand Other Matters Based on an Audit of Financial Statements

Performed in Accordance with Government Auditing Standards

Board of CommissionersAlexandria Regional Port AuthorityAlexandria, Louisiana

We have audited the financial statements of the business-type activities of Alexandria Regional PortAuthority, Alexandria, Louisiana, as of and for the year ended April 30, 2007, and have issued our reportthereon dated August 31, 2007. We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the Alexandria Regional Port Authority's internal controlover financial reporting as a basis for designing our auditing procedures for the purpose of expressing ouropinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness ofthe Alexandria Regional Port Authority's internal control over financial reporting. Accordingly, we do notexpress an opinion on the effectiveness of the Alexandria Regional Port Authority's internal control overfinancial reporting.

A control deficiency exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent or detect misstatementson a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, thatadversely affects the Alexandria Regional Port Authority's ability to initiate, authorize, record, process, orreport financial data reliably in accordance with generally accepted accounting principles such that there ismore than a remote likelihood that a misstatement of the Alexandria Regional Port Authority's financialstatements that is more than inconsequential will not be prevented or detected by the Alexandria RegionalPort Authority's internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results inmore than a remote likelihood that a material misstatement of the financial statements will not be preventedor detected by the Alexandria Regional Port Authority's internal control.

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Our consideration of internal control over financial reporting was for the limited purpose described in the firstparagraph of this section and would not necessarily identify ai! deficiencies in internal control that might besignificant deficiencies or material weaknesses. We did not identify any deficiencies in internal control overfinancial reporting that we consider to be material weaknesses, as defined above.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Authority's financial statements are free ofmaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements, noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of our audit, and accordingly, we do not express such an opinion. Theresults of our tests disclosed no instances of noncompliance or other matters that are required to bereported under Government Auditing Standards.

This report is intended solely for the information and use of management and the Board of Commissioners,state awarding agencies, and the Legislative Auditor's office of the State of Louisiana and is not intended tobe and should not be used by anyone other than these specified parties. However, under Louisiana RevisedStatute 24:513, this report is in fact a public document.

- ~~Certiflid Public Accountants

22

Alexandria Regional Port AuthoritySchedule of Findings and Questioned Costs


Section I - Summary of Auditor's Results

Financial Statements

Type of auditor's report issued:

Internal control over financial reporting:

Material weaknesses identified?

Reportable conditions identifiedthat are not considered to bematerial weaknesses?

Noncompliance material to financialstatements noted?

Management's Summary Schedule of PriorAudit Findings

Memorandum of Other Commentsand Recommendations

Management's Corrective Action Plan

Federal Awards

Section II - Financial Statement Findings

Not applicable.

Section III - Federal Award Findings and Questioned Costs

Not applicable.

Unqualified

yes

yes

yes

Not applicable

Not applicable

Not applicable

Not applicable

X no

_X none reported

X no

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