ascension-st. james airport and transportation …...31, 2017, on our consideration of ascension -...

ASCENSION - ST. JAMES AIRPORT AND

TRANSPORTATION AUTHORITY

ANNUAL EINANCIAL REPORT

EOR THE YEAR ENDED JUNE 30, 2017

TABLE OF CONTENTS

Independent Auditors' Report 1-3

Management's Discussion and Analysis 4-9

Government-wide Financial Statements: Statement of Net Position as of June 30, 2017 10 Statement of Activities for the Year Ended June 30, 2017 11

Fund Financial Statements: Balance Sheet of Governmental Funds as of June 30, 2017 12 Reconciliation of Governmental Funds Balance Sheet to

the Statement of Net Position as of June 30, 2017 13 Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds for the Year Ended June 30, 2017 14 Reconciliation of the Statement of Revenues, Expenditures, and Changes

in Fund Balance of Governmental Funds to the Statement of Activities for the Year Ended June 30, 2017 15

Statement of Net Position of Proprietary Fund as of June 30, 2017 16 Statement of Revenue, Expenses and changes in Net Position of Proprietary

Fund for the Year Ended June 30, 2017 17 Statement of Cash Flows for the Proprietary Fund for the Year Ended June 30, 2017 18

Notes to the Financial Statements for the Year Ended June 30, 2017 19 - 27

Required Supplementary Information: Budgetary Comparison Schedule for the Year Ended June 30, 2017 - General Fund 28 Budgetary Comparison Schedule for the Year Ended June 30, 2017 - Capital Projects 29 Notes to the Budgetary Comparison Schedule for the Year Ended June 30, 2017 30

Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an

Audit of Financial Statements Performed in Accordance With Government Auditing Standards 31 - 32

Other Supplementary Information: Schedule of Findings and Questioned Costs 33 - 36 Schedule of Compensation, Benefits, and Other Payments

To the Board of Commissioners 37

Independent Auditors' Report on Supplementary Information Annual Fiscal Report (AFR) for July 2017 38

Latuso and Johnson CPA, LLC Certified Public Accountants

11929 Bricksome Ave. • Baton Rouge, LA 70816 Tel (225) 293.8300 • Fax (225) 293.8303

INDEPENDENT AUDITORS' REPORT

To the Board Members Ascension — St. James Airport and

Transportation Authority Gonzales, Louisiana

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities and each major fund of Ascension — St. James Airport and Transportation Authority (the Authority) as of and for the year ended June 30, 2017, which collectively comprise the Authority's basic financial statements as listed in the table of contents and the related notes to the financial statements.

Managements Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express

1

850 Kaliste Saloom, Suite 122 • Lafayette, LA 70508 Tel (337) 269.6032 . Fax (337) 269.5583

no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of Ascension - St. James Airport and Transportation Authority as of June 30, 2017, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require the management's discussion and analysis and budgetary comparison information on pages 4 through 9 and 28 through 30 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide assurance.

Other Information

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of compensation, benefits, and other payments to the Board of Commissioners on page 37, as required by the state of Louisiana, is presented for purposes of additional analysis is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated August 31, 2017, on our consideration of Ascension - St. James Airport and Transportation Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

Latuso & Johnson, CPA, LLC Baton Rouge, Louisiana August 31, 2017

ASCENSION - ST. JAMES AIRPORT AND TRANSPORTATION AUTHORITY

MANAGEMENT'S DISCUSSION AND ANALYSIS

JUNE 30,2017

This section of the Authority's annual financial report presents our discussion and analysis of the Authority's financial performance during the fiscal year that ended on June 30, 2017. Please read it in conjunction with the Authority's financial statements, which follow this section.

FINANCIAL HIGHLIGHTS

• Grant income was increased by 11% over the prior year.

• Fund balance (from the "Modified Accrual" financial statements) decreased by $51,330.

• The authority began selling aviation fuel. Sales for the six month period was $181,632.

OVERVIEW OF THE FINANCIAL STATEMENTS

These financial statements consist of management's discussion and analysis (this section), the basic financial statements and the required supplementary information. The basic financial statements include three kinds of statements that present different views of the Authority:

Government-wide Statements The government-wide statements report information about the Authority as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the Authority's assets and liabilities. All of the current year's revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid.

The two government-wide statements report the Authority's net position and how it has changed. Net position is the difference between the Authority's assets and liabilities. It is one way to measure the Authority's financial health, or position.

Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the year. Such information may be useful in evaluating a government's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements.



JUNE 30,2017

Governmental Funds (Continued)

By doing so, readers may better understand the long-term effect of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and government wide activities.

Provrietarv Fund The proprietary fund accounts for aviation fuel sales for the Airport. Proprietary funds are used to account for the same functions as business-type activities presented in the government-wide financial statements, but the fund presentation provides more detail.

Since the government-wide focus includes the long-term view, comparisons between these two perspectives may provide insight into the long-term impact of short-term financing decisions. Whereas the Total column on the Proprietary Fund Financial Statements is the same as the Business-Type column in the Government-wide Financial Statements, the Governmental Fund Financial Statements require a reconciliation to the Governmental-Total column of the Government-wide Financial Statements.

Summary of Net Position (Government Wide)

Net % 2017 2016 Change Change

Current and otiier assets Capital assets (net of depreciation)

$ 571,371 13,785,702

$ 498,450 13,332,637

$ 72,921 453,065

14.6% 3.4%

Total assets 14,357,073 13,831,087 525,986 3.8%

Current liabilities Long-term liabilities

187,872 664,850

129,277 678,652

58,595 (13,802)

45.3% -2.0%

Total liabilities 852,722 807,929 44,793 5.5%

Net position: Invested in capital assets,

net of related debt Restricted for debt service Unrestricted

13,105,852 149,499 249,000

12,644,985 142,292 235,881

460,867 7,207

13,119

3.6% 5.1% 5.6%

Total net position $13,504,351 $13,023,158 $ 481,193 3.7%



JUNE 30,2017

Governmental Fund The Authority's governmental fund balance decrease $51,330, or 12.9% in the year ended June 30, 2017 compared with a S7,547 increase or 1.9% in the year ended June 30, 2016. (Fund balance reflects modified accrual basis accounting). The decrease in the current year is due to transfer of funds to the proprietary fund.

• Over time, increases or decreases in the Authority's net position are an indicator of whether its financial health is improving or deteriorating.

• To assess the overall health of the Authority you need to consider additional financial factors such as matters which affect the local economy.

FINANCIAL ANALYSIS OF THE AUTHORITY AS A WHOLE

The Authority's net position increased $481,193 in the year ended June 30, 2017 compared to an increase of $39,521 in the year ended June 30, 2016. (Net position reflects accrual basis accounting). The primary reason for the increase is due to the Authority starting the construction phase on several projects which created additional grant revenues for work completed, with the cost being capitalized.



JUNE 30,2017

Summary and Changes in Net Position (Government Wide) Net

2017 201^ Change Revenues:

Grant income SerGce fees Fuel sales Land and office rental Other income Interest income Ri^ of way

Total revenues

Expenses: Depreciation Cost of&elsold Salary and related ej^enses Airfield and site maintenance Interest and bond issue expense Professional fees

Utilities and telephone Other ej^enses Insurance

Loss on arbitration Total expenses

Change in net position

Beginning net position

Ending net position

% Change

$ 965,434 $ 869,499 $ 95,935 11.0% 206,340 200,773 5,567 2.8% 181,632 - 181,632 -

9,815 10,158 (343) -3.4% 6,507 14,970 (8,463) -56.5%

782 673 109 16.2% - 52,360 (52,360) -100.0%

1,370,510 1,148,433 222,077 19.3%

541,915 516,529 25,386 4.9% 132,085 - 132,085 -

60,648 42,275 18,373 43.5% 45,939 35,857 10,082 28.1% 43,227 43,785 (558) -1.3% 24,170 67,509 (43,339) -64.2% 17,395 16,433 962 5.9% 14,617 11,342 3,275 28.9% 9,321 8,995 326 3.6% - 14,187 (14,187) -100.0%

889,317 756,912 132,405 17.5%

481,193 391,521 $ 89,672 22.9%

13,023,158 12,631,637

$ 13,504,351 $13,023,158



JUNE 30,2017

General Fund Budgetary Highlights

Over the course of the year, the Authority had two revisions to its budget. For the year ended June 30, 2017, the General Fund actual revenues were 1.7% higher and actual expenditures were 1.8% higher than the final adopted general fund budgeted revenues and expenditures.

CAPITAL ASSETS

At the end of June 2017 and 2016, the Authority had invested $13,785,702 mid $13,332,637, respectively, in capital assets. The capital assets (Government Wide) consisted of the following:

Net % 2017 2016 Change Change

Land $ 1,882,915 $ 1,882,915 $ 0.0% Building 1,837,374 1,834,389 2,985 0.2% Infrastructme 16,374,671 15,470,682 903,989 5.8% Equ^ment 321,977 277,469 44,508 16.0% Construction in progress 96,887 58,544 38,343 65.5% Fmniture 5,878 5,878 - 0.0% Total 20,519,702 19,529,877 989,825 5.1%

Accumidated Depreciation (6,734,000) (6,197,240) (536,760) 8.7%

Net $ 13,785,702 $ 13,332,637 $ 453,065 3.4%

LONG TERM DEBT

In July of 2006 the Authority issued Revenue Bonds, Series 2006A with total face value of $755,000 bearing interest at 6%. Interest is paid on these bonds in July and January. The bonds maturing on and after July 15, 2017 are subject to redemption prior to maturity, at the option of the Authority. As to the mandatory retirement of the bonds, the Authority is required by the bond documents to redeem the Bonds on July 15 of each year.

During the year ended June 30, 2017 the amount of principal owed on the bonds decreased by 1.4% from $710,000 to $700,000.



JUNE 30,2017

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET

The economy is not expected to generate any significant growth. Therefore, the Authority's future revenues are expected to be consistent with the current year. The budget for the 2017 - 2018 year is approximately the same as the year 2016 - 2017's budget for all items other than grants. Generally the grants are for specific projects or items and are not included in the general fund budget.

CONTACTING THE AUTHORITY'S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the Authority's finances and to demonstrate the Authority's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Ms. Janet Gonzales at Ascension - St. James Airport and Transportation Authority, 6255 Airport Industrial Boulevard, Gonzales, LA 70737.


STATEMENT OF NET POSITION JUNE 30, 2017

ASSETS Cash and cash eqiuvalents Grants receivable Accoittits receivable Inventory Money market investments - restricted Capital assets - net

Total assets

Governmental Activities

$ 201,704 62,073 10,134

168,749 13,755,886 14.198.546

Business-type Activities

98,322

6,853 23,536

29,816 158.527

Total

300,026 62,073 16,987 23,536

168,749 13,785,702 14.357.073

LIABILITIES Accoittits payable Accoittits payable - capital projects Sales taxes payable Accrued e?q)enses and benefits payable Accrued interest payable User deposits Unearned revenue Current portion of certificate of indebtedness Long-term liabilities:

Certificate of indebtedness Unamortized discount on indebtedness Total liabilities

9,370 65,523

2,726 19,250 5,700 11,973 15,000

685,000 (20,150)

54,911

1,052 2.367

64,281 65,523 1,052 5,093

19,250 5,700 11,973 15,000

685,000 (20,150)

794.392 58.330 852.722

NET POSITION Invested in capital assets, net of related debt Restricted for debt seiMce Unrestricted

Total net position

13,076,036 149,499 178,619

$ 13,404,154

29,816

70.381 100.197

13,105,852 149,499 249,000

$ 13,504,351

The accompanying notes are an integral part of these financial statements 10


STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30,2017

Program Revenues

Fees and Operating Capital Charges for Grants and Grants and

Expenses Services Contributions Contributions Governmental activities: Transportation Airport operations $ 139,852 $ 206,340 $ 9,484 $ 955,950

Depreciation 537,791 - - -

Total transportation 677,643 206,340 9,484 955,950

Interest and fiscal charges 43,227 - - -

Total govemrrental activities $ 720,870 $ 206,340 $ 9,484 $ 955,950

Business- type activities: Fuel Sales $ 168,447 $ 181,632 - -

Total business- type activities 168,447 181,632 - -

Total $ 889,317 $ 387,972 $ 9,484 $ 955,950

Governmental Business-type Activities Activities Total

Net e>penses less programrevenues $ 450,904 $ 13,185 $ 464,089

General revenues:

Land and office rental 9,815 - 9,815

Miscellaneous 6,433 74 6,507

Interest 782 - 782

Transfers between funds (63,539) 63,539 -

Total general revenues and transfers (46,509) 63,613 17,104

Qiange in net position 404,395 76,798 481,193

Net position - beginning 13,023,158 - 13,023,158

Transfers fi'omprioryear General Fund capital outlay (23,399) 23,399 -

Net position - ending $ 13,404,154 $ 100,197 $ 13,504,351

Net (Expenses) Revenue and Changes in Net Position

1,031,922 (537,791) 494,131 (43,227) 450.904

13.185 13.185



BALANCE SHEET GOVERNMENTAL FUNDS

JUNE 30, 2017

Debt Capital General Se rvice Projects

Fund Fund Fund Total ASSETS Cash and cash equivalents $201,704 $ - $ $ 201,704 Grants receivable 9,484 - 62,073 71,557 Accoimts receivable 650 - - 650 Short term investments - restricted - 168,749 - 168,749

Total assets 211,838 168,749 62,073 442,660

LIABILITIES AND FUND BALANCE Accoimts payable 9,370 - 65,523 74,893 Accrued expenses and benefits payable 2,726 - - 2,726 Hanger deposits 5,700 - - 5,700 Uneamed revenue 11,973 - - 11,973

Total liabilities 29,769 - 65,523 95,292

Fimd balance: Restricted for debt service - 168,749 - 168,749 Unassigned 182,069 - (3,450) 178,619

Total fund balance 182,069 168,749 (3,450) 347,368 Total liabilities and fund balance $211,838 $ 168,749 $ 62,073 $ 442,660


ASCENSION - ST. JAMES AIRPORT

AND TRANSPORTATION AUTHORITY

RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION

JUNE 30,2017

Total fimd balance for governmental funds (page 12) 347.368

Total net position reported for governmental activities in the

statement of net position is different because:

Capital assets used in governmental activities are not

financial resources and therefore are not reported

in the funds. Those assets consist of

Infrastructure

Land

Biuldings

Equ^ment

Construction in progress

Furniture

Accumulated depreciation

Net capital assets

16,374,672

1,882,915

1,837,374

284,694

96,887

5,878 (6,726,534)

13.755.886

The bonds oustanding and related accrued interest are

not due and payable in the current period and accordingly

are not reported as fimd liabilities.

Bonds payable

Accrued interest on bonds payable

Unamortized bond discoimt

Net long term liabilities

(700,000)

(19,250)

20.150

(699,100)

Total net position of governmental acthfiies (page 10) $ 13,404,154



STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS

Debt Capital General Service Projects

Fund Fund Fund Total REVEHUES

Service fees $ 206,340 $ $ - : B 206,340

Land and office rental 9,815 9,815

Grant income 9,484 - 955,950 %5,434

Interest 709 73 - 782

Miscellaneous 6,433 - - 6,433

Total revenues 232,781 73 955,950 1,188,804

EXPENDllLRES

Cunent:

Transportation

Salary and related e>qDenses 43,874 - - 43,874

Maintenance and repairs 40,139 - - 40,139

Professional fees 24,170 - - 24,170

Utilities and telephone 17,395 - - 17,395

Insurance 9,321 - - 9,321

Per diems 5,100 - - 5,100 Other e>qDenses 2,838 - - 2,838

Capital outlay 6,074 - 975,384 981,458

Debt service

Principal payment on debt - 10,000 - 10,000

Interest on debt - 42,300 - 42,300 Total e>penditures 148,911 52,300 975,384 1,176,595

Excess ofrevenues over e>penditures (e>penditures over

revenues) 83,870 (52,227) (19,434) 12,209

OTHER FINANCING SOURCES (USES)

Operating transfers in (out) (138,229) 59,159 15,531 (63,539)

Total other financing sources (uses) (138,229) 59,159 15,531 (63,539)

Net changes in fund balance (54,359) 6,932 (3,903) (51,330)

Fund balance - beginning 236,428 161,817 453 398,698

Fund balance - ending $ 182,069 $ 168,749 $ (3,450) : B 347,368



RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2017

Net change in fund balance-totalgovemmentalfunds (pagel4) $ (51,330)

The change in net position for governmental activities in the statement of activities

is different because:

Governmental funds report capital outlays as e>qDenditures. However, in the

statement of activities only the cost of those assets is allocated over their estimated

useful lives and reported as depreciation opens e. This is the amount by which

capital outlays in the current period exceeded depreciation:

Capital outlay 981,458 Depreciation opense (537,791)

Asset e>pensed in prior year 2,985

446,652

Repayment of certificate of indebtedness is an e>penditure in the governmental

funds but reduces the liability in the statement of net position. 10,000

Under the modified accrual basis of accounting used in the governmental funds, net

proceeds from the issuance of debt is recognized as an other financing source. In

the fuU accrual statement of net assets, the fuU amount due on certificates of

indebtedness is shown as a liability, which is offset by the unamortized portion of

the original issue discount.

Change in accrued interest payable 275 Amortization of original issue discount (1,202)

Change innet position of governmental activities (page 11) $ 404,395



STATEMENT OF NET POSITION PROPRIETARY FUND - FUEL SALES

JUNE 30,2017

ASSETS

Cmrent Assets:

Cash

Receivables

Inventory

Total Current Assets

98,322

6,853

23,536

128.711

Noncmrent Assets:

Capital assets

Accumulated depreciation

Total Noncurrent Assets

37,283

(7,467)

29.816

Total Assets $ 158,527

LIABILITIES Cmrent Liabilities:

Accoimts payable

Accrued expenses and benefits payable

Sales taxes payable

Total Current Liabilities

$54,911

2,367

1,052

58.330

Total Liabilities S 58,330

NET POSITION Invested in capital assets

Unrestricted

29,816

70.381

Total Net Position S 100,197



STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUND - FUEL SALES

FOR THE YEAR ENDED JUNE 30,2017

Operating Revenues Charges for services $ 181,632

Total Operating Revenues 181,632

Operating Expenses CostofGas 132,085 Salaries and benefits 16,773 Repairs and maintenance 8,785 Supplies 4,768 Depreciation and amortization 4,124 Seminar & Meeting 1,537 Miscellaneous expense 375

Total Operating Expenses 168,447 Net Operating Income 13,185

Nonoperating Revenue (Expense) Miscellaneous income 74

Net Nonoperating Revenue 74

Net Income before Transfers 13,259

Other Financing Sourees Transfers in 63.539

Net Income after Transfers 76,798

Net Position-Beginning

Transfers from prior year General Fund capital outlay 23,399

Net Position-Ejiding $ 100,197



STATEMENT OF CASH FLOWS PROPRIETARY FUND - FUEL SALES

FOR THE YEAR ENDED JUNE 30, 2017

Cash Flows from Operating Activities Rece^ts from customers Gas piffchases Payments to si^pliers Payments to enployees and benefits

Cash Flows Provided by Operating Activities

Cash Flows from Non-Capital Financing Activities Transfers from General Fimd for operations Miscellaneous

Cash Flows Provided by Non-Capital Financing Activities

Cash Flows from Capital and Related Financing Activities Piffchase of property and eqi^ment

Cash Flows Used by Capital and Related Financing Activities

Net Increase in Cash and Cash Equivalents Balances - Beginning of Year Balances - End of Year

S 175,831 (101,999)

(14,176) (14.406) 45.250

63,539 74_

63.613

(10,541) (10,541)

98.322

$ 98.322

Reconciliation of Net Operating Income to Net Cash Used by Operating Activities

Net operating income Adjustments to reconcile net operating loss to net cash

used by operating activities: Depreciation Change in assets and liabilities:

Increase in receivables Increase in inventory Increase in accoimts payable Increase in accrued ejqjenses Increase in sales tax payable

$ 13.185

4,124

(6,853) (23,536) 54,911

2,367 1.052

Net Cash Used by Operating Activities $ 45.250



NOTES TO THE FINANCIAL STATEMENTS


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Ascension - St. James Airport and Transportation Authority (the Authority) was organized pursuant to RS 2:341 and operates a regional airport located near Gonzales, Louisiana. The accompanying financial statements have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Such accounting and reporting procedures also conform to the requirements of LRS 24:514 and the Louisiana Governmental Audit Guide.

The more significant of the Authority's accounting policies are described below:

A: FINANCIAL REPORTING ENTITY

The Authority was created, effective July 13, 1984 by Act 819 of the 1982 Legislative Session in the Executive Department of the state. The governor is responsible for appointing the Board of Commissioners of the Authority, who serve at the governor's leisure. Therefore the Authority is considered to be a component unit of the State of Louisiana.

The Authority serves the parishes of Ascension and St. James for airport services. The accompanying financial statements include government activities, organizations and functions for which the Authority is financially accountable.

B: BASIS FOR PRESENTATION AND ACCOUNTING

Government-wide Financial Statements: The Authority's activities generally are financed through fees for services and grants. The government-wide financial statements are reported using the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. The statement of activities presents a comparison between direct expenses and program revenues for the activities of the Authority.

Governmental Fund Financial Statements: The fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Eund balances for all major governmental funds and provide information about the Authority's activities. Current year construction proj ects are accounted for in the Capital Proj ects Eund. Eunds used for the retirement of the bonds are reported in the Debt Service Eund. All other activity is reported in the general fund. Transfers between the General fund and the Debt Service fund reflect transfers of hangar rental revenue restricted for debt service.

19




NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)

B: BASIS FOR PRESENTATION AND ACCOUNTING - (CONTINUED)

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The Authority considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Service fees and grants are subject to accrual. Grant revenue is recognized when the Authority is entitled to the funds. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, which are recognized as expenditures only to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds.

Proprietary Fund Financial Statements: The fund is used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful to sound financial administration. Proprietary funds differ from governmental funds in that their focus is on income measurement, which, together with the maintenance of equity, is an important financial indicator. The Proprietary fund includes the fuel fund, which accounts for the sale of aviation fuel to the users of the airport facilities. The proprietary fund uses the accrual basis of accounting. Revenues are recognized when the sale is incurred, and expenses are recognized at the time liabilities are incurred.

C: CASH AND CASH EQUIVALENTS

Cash includes amounts in demand deposits, interest-bearing demand deposits and time deposit accounts. The Authority considers short-term (maturity of 90 days or less), highly liquid investments as cash equivalents. Under state law, the Authority may deposit funds in demand deposits, interest bearing demand deposits, money market accounts or time deposits with state banks organized under Louisiana Law and national banks having their principal offices in Louisiana.

D: RESTRICTED INVESTMENTS

The Authority holds its funds restricted for servicing of bonds in Bank of New York Mellon's U.S. Treasury money market funds. The investments are valued at fair market value, based on observable market data. The fair market value approximates cost.

E: INVENTORY

Inventory is stated at cost, computed using the first in, first out (LILO) method. Inventory consists of aviation fuel purchased for resale.

20





F: CAPITAL ASSETS

All capital assets are capitalized at historical cost, or estimated historical cost for assets where actual cost is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The Authority maintains a threshold level of $1,000 or more for capitalizing capital assets.

Equipment 5-30 Furniture 7 Buildings 7-40 Infrastructure - runway, surface layer 20 Infrastructure - other 7-40

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

G: BUDGET PRACTICES

The proposed budget for the year ended June 30, 2017 was made available for public inspection on June 2, 2016. The proposed budget was published in the official journal 40 days prior to the public hearing, which was held at the terminal building for comments from taxpayers. The budget is legally adopted and amended, as necessary, by the Board members. There were two amendments during the year.

The accompanying Budgetary Comparison Schedule on page 28 presents comparisons of the legally adopted budget with actual results. The final budget was prepared on the cash basis of accounting. Because accounting principles applied for purposes of developing data on a budgetary basis differs significantly from those used to present financial statements in conformity with generally accepted accounting principles, a reconciliation of resultant basis, and timing, perspective, and entity differences for the year ended June 30, 2017 is presented.

All expenditure appropriations lapse at year-end. Unexpended appropriations and any excess of revenues over expenditures are carried forward to the subsequent year as beginning fund balance.

Encumbrance accounting is not used. However the budget is integrated into the accounting records which allows monthly comparison of budget and actual amounts. Budget amounts included in the accompanying financial statements include the original adopted budget and all subsequent amendments.

21





H: USE OF ESTIMATES

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

I: FUND EQUITY

The Authority has implemented the provisions of Governmental Accounting Standards Board Statement No. 54, which redefined how fund balances are presented in fund financial statements. In the governmental fund financial statements, fund balances are classified as follows:

Nonspendable - Amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact. As of June 30, 2017, the Authority did not have any non spendable fund balance.

Restricted - Amounts that can be spent only for specific purposes because of state or federal laws, or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments. As of June 30, 2017, the Authority's restricted fund balmice totaled $168,749.

Committed - Amounts that can be used only for specific purposes determined by a formal action of the Board of the Authority. The Board is the highest level of decision-making authority for the Authority. These amounts cannot be used for any other purpose unless the Board removes or changes the specified use by taking the same type of action that was employed when the funds were initially committed. This formal action is the adoption of a resolution by the Board. As of June 30, 2017, the Authority did not have any committed fund balances.

Assigned - Amounts that are intended to be used for specific purposes but do not meet the criteria to be classified as restricted or committed. Intended use is expressed by the Board who has the authority to assign amounts to be used for specific purposes. As of June 30, 2017, the Authority did not have any assigned fund balances.

Unassigned - All amounts not included in other spendable classifications. Unassigned fund balances are the residual classification for the Authority's General fund. As of June 30, 2017, the Authority's unassigned fund balance totaled $178,619.

22





I: FUND EQUITY - (CONTINUED)

The Authority applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balances, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

J: SERVICE FEES

Service fees include hangar, office and tie down rentals as well as fuel commissions and miscellaneous revenues. These are accounted for in the Authority's Statement of Activities as program revenues.

K: UNEARNED REVENUE

Income from hangar rentals and tie down fees is deferred and recognized over the periods to which the dues and fees relate. Grants received in advance of the incurrence of eligible costs are recorded as unearned grant revenue until the costs are incurred.

As of June 30, 2017, $11,973 was recorded as unearned revenue for deferred hangar fees and land lease payments.

L: FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of financial instruments classified as current assets or liabilities, including cash and cash equivalents, short-term investments, accounts receivable, and accounts payable and accrued expenses approximate carrying value, principally because of the short maturity of those items.

NOTE 2 - CASH AND CASH EQUIVALENTS

At June 30, 2017 the Authority's cash and cash equivalents:

BOOK BALANCE BANK BALANCE $300,026 $333,615

23




NOTE 2 - CASH AND CASH EQUIVALENTS - (CONTINUED)

Under state law, federal deposit insurance or the pledge of securities owned by the fiscal agent bank must secure these bank balances. The market value of the pledged securities plus the federal deposit insurance must at all times equal or exceed the amount on deposit with the fiscal agent. These securities are held in the name of the pledging fiscal agent bank in a holding or custodial bank that is mutually acceptable to both parties. These deposits are secured from risk by federal deposit insurance of $250,000 and approximately $1,593,065 of pledged securities held by the trust department of the fiscal agent bank. Louisiana Revised Statute 39:1229 imposes a statutory requirement on the trust department of the fiscal agent bank to advertise and sell the pledged securities within 10 days of being notified by the District that the fiscal agent has failed to pay deposited funds upon demand.

NOTE 3 - SHORT TERM INVESTMENTS - RESTRICTED

In July of 2006, bonds in the amount of $770,000 bearing the interest rate of 6% were issued. As required by the bond document, certain treasury securities are held at the trustee bank for the payment of principal and interest on the retirement of these bonds. The balance of these investments at June 30, 2017 was $168,749. Accordingly, that amount of the fund balance and net position, less any accrued interest payable, is accounted for in the accompanying statements as restricted.

NOTE 4 - RECEIVABLES

Receivables at June 30, 2017 were as follows:

Grants receivable $62,073 Maintenance reimbursement 9,484 Hangar and tie down rentals 650 Total governmental receivables $72.207

Receivable from Proprietary Fund users $ 6.853

24




NOTE 5 - CAPITAL ASSETS

Capital asset activities for the year ended June 30, 2017:

Governmental Activities Beainnina Endina Balance Additions Transfers Disoosais Balance

Non-depreciable assets: Land $ 1,882,915 $ $ $ $ 1,882,915 Construction in progress 58,544 884,387 (846,044) - 96,887 Total Non-depreciable assets 1,941,459 884,387 (846,044) - 1,979,802

Depreciable assets: Infrastructure 15,470,682 61,742 846,044 (3,797) 16,374,671 Buildings 1,834,389 2,985 - - 1,837,374 Equipment 277,469 35,325 (26,742) (1,358) 284,694 Furniture 5,878 - - - 5,878 Total depreciable assets 17,588,418 100,052 819,302 (5,155) 18,502,617

Less accumulated depreciation: Infrastructure (5,523,011) (469,641) - 3,797 (5,988,855) Buildings (542,057) (46,186) - - (588,243) Equipment (126,325) (21,933) 3,343 1,358 (143,557) Furniture (5,847) (31) - - (5,878) Total accumulated depreciation: (6,197,240) (537,791) 3,343 5,155 (6,726,533)

TOTALS $13,332,637 $ 446,648 $ (23,399) $ $13,755,886

Busness-Type Activities Beainnina Endina Balance Additions Transfers Disoosais Balance

Depreciable assets: Equipment - 10,541 26,742 - 37,283 Total depreciable assets - 10,541 26,742 - 37,283

Less accumulated depreciation: Equipment - (4,124) (3,343) - (7,467) Total accumulated depreciation: - (4,124) (3,343) - (7,467)

TOTALS $ $ 6,417 $ 23,399 $ $ 29,816

Depreciation expense recorded for the year ended June 30, 2017 was $541,915.

25




NOTE 6 - LONG-TERM OBLIGATIONS

The long term obligation outstanding at June 30, 2017 is as a result of the issuance of Revenue Bonds totaling $770,000 in July 2006. The bonds bear an interest rate of 6%. Interest on the bonds is payable in semiannual payments in January and July of each year. The next principle reduction is scheduled for July 15, 2017 in the amount of $15,000. The bonds maturing on and after July 15, 2017 are subject to redemption prior to maturity, at the option of the Authority.

The following is a summary of the long-term obligation transactions and balances during the year:

Balance at June 30, 2016 $710,000

Repayments 10.000

Balmice at June 30, 2017 700,000

Less current maturities 15.000

Long-term portion $685,000

The annual principal and interest payments on the long-term obligations outstanding at June 30, 2017 are as follows:

Year Ending Princinal Interest June 30,

2018 15,000 41,550 2019 15,000 40,650 2020 20,000 39,600 2021 20,000 38,400 2022 20,000 37,200 2023-2027 120,000 165,600 2028-2032 205,000 117,750 2033-2037 285.000 44.850

$700,000 $525,600

The original par value on the bonds totaled $770,000. Proceeds from the bonds were $737,136. The difference of $32,864 was recorded as a discount on the issuance of the bond. This difference is amortized as interest over the life of the bonds. During the year ended June 30, 2017, $43,227of interest was recognized as current period interest expense, which included $1,198 of bond amortization.

26




NOTE 6 - LONG-TERM OBLIGATIONS - (CONTINUED)

The revenue from renting the hangars built using the funds from the bond issue is pledged to repay the bonds.

NOTE 7- SUBSEQUENT EVENTS

Management of the Authority has evaluated all subsequent events through August 31, 2017, the date the financial statements were available to be issued. No additional disclosures are considered necessary.

27


MODIFIED CASH BASIS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCE BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2017

Variances with Einal Bu^et

Original Rnal Actual Positive Budget Budget Bu^etary Basis (Negative)

REVENUES

Hangar rent and tie down fees $ 198,000 $ 213,508 $ 215,200 $ 1,692

Fuel commiss ions 10,000 6,705 9,572 2,867

Land lease 7,200 6,992 6,992 -

Office rental 3,000 3,000 3,000 -

Interest 230 725 709 (16)

DOTD maintenance reimbursement 4,900 9,718 9,718 -

Miscellaneous - 1,058 678 (380)

Total revenues 223,330 241,706 245,869 4,163

EXPENDllUEtES Current:

Transportation

Per diem 7,500 5,325 5,100 (225)

Management salary and related ta>ffis 42,330 42,275 42,275 -

Profes sional fees 20,500 20,373 21,910 1,537

Miscellaneous - - 2,866 2,866

Utilities and telephone 20,000 17,177 17,177 -

Maintenance 38,000 40,008 38,221 (1,787)

Office supplies 2,000 1,625 1,609 (16)

Insurance 10,000 9,321 9,321 -

Seminars & meetings 2,000 901 510 (391)

Other e>qDenses 1,000 175 680 505

Total e>penditures 143,330 137,180 139,669 2,489

E>82ess ofrevenues overe>penditures 80,000 104,526 106,200 1,674

O THER FINANCING US ES Transfers out - capital projects (20,000) (66,999) (15,531) 51,468

Transfers out - debt service (60,000) (61,908) (59,159) 2,749

Transfers out - proprietary - - (63,539) (63,539)

Payment for prior year arbitration - - (38,063) (38,063)

Total other financing uses (80,000) (128,907) (176,292) (47,385)

Net change in fund balance - (24,381) (70,092) (45,711)

Fund balance - beginning 271,795 271,795 271,795 -

Fund balance - end $ 271,795 $ 247,414 $ 201,703 $ (45,711)

The accompanying notes are an integral part of this schedule 28


MODIFIED CASH BASIS STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN

FUND BALANCE- BUDGET AND ACTUAL CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE 30, 2017

Variances with Final Bu^et

Original Rnal Actual Positive Budget Budget Bu^etary Basis (Negative)

REVENUES Grant income - capital projects $ 1,486,715 $ 946,062 $ 941,604 $ (4,458)

EXPENDITURES Capitaloutlay 1,506,715 1,013,061 957,135 (55,926)

OTHER ETNANriNGISES Transfers in - capital projects 20,000 66,999 15,531 (51,468)

Net change in fund balance - -

Fund balance-beginning - -

Fund balance - end $ - $ - $ - $


ASCENSION - ST. JAMES AIRPORT AND

TRANSPORTATION AUTHORITY

NOTES TO BUDGETARY COMPARISON SCHEDULE


Note A - Explanation of differences between Budgetary Revenues and Expenditures and GAAP Revenues and Expenditiffes

Budgetary Funds

Financial Statement Major Funds

Revenues:

Actual amounts (budgetary basis) "revenues" from the budgetary comparison schedule

Adjustments To adjust for increase (decrease) in accrued income

Grant income - capital projects Service fees Other income DOTD maintenance reimbursement

Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances - governmental funds

Expenditures:

Actual amounts (budgetary basis) "expenditiffes" from the budgetary comparison schedule

Adjustments To adjust for increase (decrease) in accrued expenditwes

Transportation Accrued misc expenses Capital outlays

Total expenditures as reported on the statement of revenues, expenditiffes, and changes in fund balances - governmental fimds

General Fund

(8,860) (3,994)

(234)

12,108 (2,866)

Capital Projects Fund

245,869 $ 941,604

14.346

$ 232,781 $ 955.950

139,669 $ 957,135

18.249

148,911 $ 975,384


Latuso and Johnson CPA, LLC Certified Publie Aeeountants


INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board Members Ascension — St. James Airport

and Transportation Authority Gonzales, Louisiana

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of Ascension — St. James Airport and Transportation Authority (the Authority) as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements, and have issued our report thereon dated August 31, 2017.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Authority's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material

31

weaknesses or significant deficiencies may exist that were not identified.

Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify several deficiencies in internal control described in the accompanying schedule of findings and questioned costs that we consider to be a significant deficiency in internal control as indicated by finding 2017-1 to 2017-5 and 2017-7.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Authority's financial statements are free of material 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 the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed two instances of noncompliance or other matters that are required to be reported under Government Auditing Standards, as indicated by finding 2017-2 and 2017-6.

Authoritv's Response to Findings

The Authority's responses to the findings identified in our audit are described in the accompanying schedule of findings. The Authority's responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Baton Rouge, Louisiana August 31, 2017

32


SCHEDULE OF FINDINGS AND QUESTIONED COSTS


SECTION 1 - SUMMARY OF AUDITORS' RESULTS

Financial Statements

Type of auditor's report issued: Unmodified

Internal control over financial reporting: • Material weakness identified?

• Significant deficiency identified?

Noncompliance material to financial statements noted?

Noncompliance with laws and regulations noted?

Management letter was issued?

yes X yes

yes

X yes

yes

X no no

X no

no

X no

Federal Awards

Material weakness identified? Significant deficiency identified?

Not applicable Not applicable

33


SCHEDULE OF FINDINGS AND QUESTIONED COSTS


SECTION H - SCHEDULE OF PRIOR YEAR FINDINGS

2016-1 FINANCIAL STATEMENT PREPARATION

Finding: See finding 2017-1

Action Taken: None

SECTION HI- SCHEDULE OF CURRENT FINDINGS

2017-1 FINANCIAL STATEMENT PREPARATION

Finding: The authority does not have a staff person who has the qualifications and training to apply general accepted accounting principles in preparing its financial statements. The Authority relies on its auditor to assist in the preparation of the external financial statements and related disclosures. Under U.S. generally accepted auditing standards, the Authority's auditors cannot be considered part of the Authority's internal control structure; however, design of the internal control structure does not otherwise include procedures to prepare external financial statements and related disclosures in conformity with U.S. generally accepted accounting principles.

Recommendation: Since the Authority is satisfied with using its auditing firm to prepare the external financial statements, no change is recommended. However, this matter will continue to be reported.

Management's response: Management understands that this finding results from professional standards that have been adopted by the accounting profession. The Authority generates financial information needed to effectively manage and plan operations in a timely manner and does not consider their current situation to be deficient. However, management will review the resources necessary to prepare financial statements in accordance with generally accepted accounting principles, with full footnote disclosures, to determine if it would represent responsible stewardship.

2017-2 PAYROLL RECORDKEEPING

Finding: The recordkeeping for the payroll function was found to not have satisfactory support for all hours worked as the timesheets did not match the payroll of the pay period. In addition, some timesheets did not properly record callouts. The employee payroll files were found to be missing forms L-4 and 1-9. Failure to maintain these forms could result in penalties to the Authority.

34


SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)


Recommendation: Management should use a timesheet that matches the pay period and contains call out times. In addition, management should have all current employees fill out and sign L-4's and I-9's. These forms should be kept in the employee files.

Management's response: Management now uses a revised timesheet and has given employees the L-4 and 1-9 forms for completion and inclusion in their individual personnel files.

2017-3 BANK DEPOSIT PROCEDURES

Finding: We noted that deposits are not being made timely. During our cash procedures we noted that several bank statements had a large number of checks being deposited on one day during the month. The checks were held for over a week and in some instances the sum was over $10,000.

Recommendation: To reduce the risk of loss management should make deposits at least weekly. If a bank visit cannot be made, we recommend using the night-time deposit drop box after hours, or use a check scanner.

Management's response: Management has adopted new policies and procedures for weekly deposits.

2017-4 PROPRIETARY FUND RECORDKEEPING

Finding: Our review of the general ledger and budget indicated the activity for the Proprietary Fund was not segregated properly. The General Fund activities were comingled with the transactions of the Proprietary Fund.

Recommendation: The Authority should maintain a separate general ledger or add separate categories to track the Proprietary Fund's activities and budget. This could also be accomplished by having separate QuickBooks files. Monthly financial statements should be prepared and reviewed by the Board.

Management's response: Management is now maintaining separate general ledgers for the General Fund and Proprietary Fund for proper segregation of activities and budget. The chairman has designated specific board members who will review and sign monthly financial statements and ensure they are presented to the board for review as well.

2017-5 PROPRIETERY FUND ACCOUNTING

Finding: The activity for the Proprietary Fund does not properly record monthly accounts payable and inventory balances. As gas purchasing is a major cost of the Proprietary Fund, the recording

35


SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)


of these balances are necessary for proper and meaningful financial statements.

Recommendation: Management should record month end inventory by using a month-end physical measurement, and adjust the accounts payable monthly for unpaid gas purchases.

Management's response: Management has set policy and procedures to record accounts payable invoices in QuickBooks, setting suspense dates for timely payment and for review of accounts payable activity. Management has also set the policy to measure and record fuel physical inventory on the last day of each month.

2017-6 COMPLIANCE MATTER

Finding - During the year, the Authority had a misappropriation of funds by an employee. The Authority is required by statue RS: 24:523 to immediately notify the legislative auditor and the district attorney of the parish of the occurrence. Notification was not made timely.

Recommendation - Since management was unaware of the requirement and has made the necessary notification, no recommendation is necessary.

Management's response - In the event of a future misappropriation, the appropriate parties will be promptly notified in writing.

2017-7 INADEQUATE INVENTORY CONTROLS

Finding - The above mentioned misappropriation was not discovered timely to enable immediate follow-up. A reconciliation of the inventory quantities did not occur for several weeks. In addition, review of surveillance camera recordings was not available.

Recommendation - A reconciliation of gas inventory, purchases and sales, should be performed within three days of the measurement date. Recordings from the surveillance camera should be tested periodically.

Management response - Management has adopted policy and procedures to measure physical inventory no less than 5 times a week. The protocol for sales transactions has also been modified to ensure collection of payment is made at the time of the sale. Verification that these protocols were followed is confirmed the following day. Recordings from the surveillance camera will be tested periodically.

36


SCHEDULE OF COMPENSATION, BENEFITS, AND OTHER PAYMENTS

TO THE BOARD OF COMMISSIONERS


Per diems totaling $5,100 were expended during the year ended June 30, 2017 for the members of the Authority's Board of Commissioners.

With Board approval, per diem for Doyle M. Philippe was relinquished in favor of Pilots for Patients ($600).

Name Per Diem Richard Webre (appointed 11/2016) $ 525 Jared Amato 750 Cynthia Stafford (appointed 2/2017) 225 Roger Keese 675 James Mitchell 450 Charles Ketchens (appointed 12/2016) 375 Doyle Philippe (resigned 4/2017) 600 George Rodeillat (resigned 4/2017) 675 Calvin Narcisse (resigned 4/2017) 600 James Riviere (resigned 11/2016) 225

$5,100

The Board of Commissioners did not receive any additional payments for compensation, benefits, or expenses and none of the above individuals are designated as the agency head.

37

Latuso and Johnson CPA, LLC Certified Publie Aeeountants


INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTARY INFORMATION

Ascension - St. James Airport and Transportation Authority

Gonzales, Louisiana

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the govemmental activities and each major fimd of Ascension - St. James Airport and Transportation Authority (the Authority) as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements, and have issued our report thereon dated August 31, 2017.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Ascension - St. James Regional Airport and Transportation Authority basic financial statements. The accompanying Annual Fiscal Reporting (AFR) packet is presented for purposes of additional analysis as required by the State of Louisiana and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Latuso & Johnson, CPA, LLC Baton Rouge, Louisiana August 31, 2017

38

ANNUAL FISCAL REPORT (APR) FOR 2017

AGENCY: 20-lF - Ascension St. James Airport and Transportation Authority PREPARED BY: David Holloway PHONE NUMBER: 225-293-8300 EMAILADDRESS: [email protected] SUBMITTAL DATE: 08/31/2017 05:09 PM

STATEMENT OE NET POSITION ASSETS CURRENT ASSETS: CASH AND CASH EQUIVALENTS

RESTRICTED CASH AND CASH EQUIVALENTS

INVESTMENTS

RESTRICTED INVESTMENTS

DERIVATIVE INSTRUMENTS

RECEIVABLES (NET)

PLEDGES RECEIVABLE (NET)

LEASES RECEIVABLE (NET)

AMOUNTS DUE FROM PRIMARY GOVERNMENT

DUE FROM FEDERAL GOVERNMENT

INVENTORIES

PREPAYMENTS

NOTES RECEIVABLE

OTHER CURRENT ASSETS

TOTAL CURRENT ASSETS

300,026.00

0.00

0.00

0.00

0.00

7,503.00

0.00

0.00

71,557.00

0.00

23,536.00

0.00

0.00

0.00

$402,622.00

NONCURRENT ASSETS: RESTRICTED ASSETS:

CASH

INVESTMENTS

RECEIVABLES (NET)

NOTES RECEIVABLE

OTHER

INVESTMENTS

RECEIVABLES (NET)

NOTES RECEIVABLE

PLEDGES RECEIVABLE (NET)

LEASES RECEIVABLE (NET)

CAPITAL ASSETS (NET OF DEPRECIAHON & AMORTIZATION)

LAND

BUILDINGS AND IMPROVEMENTS

MACHINERY AND EQUIPMENT

INFRASTRUCTURE

INTANGIBLE ASSETS

CONSTRUCTION IN PROGRESS

OTHER NONCURRENT ASSETS

TOTAL NONCURRENT ASSETS

TOTAL ASSETS

0.00

168,749.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1,882,915.00

1,249,131.00

170,953.00

10,385,816.00

0.00

96,887.00

0.00

$13,954,451.00

$14,357,073.00

DETERRED OUTELOWS OE RESOURCES ACCUMULATED DECREASE IN FAIR VALUE OF HEDGING DERIVAHVES

DEFERRED AMOUNTS ON DEBT REFUNDING

ADJUSTMENT OF CAPITAL LEASE OBLIGATIONS

GRANTS PAID PRIOR TO MEETING TIME REQUIREMENTS

INTRA-ENTITY TRANSFER OF FUTURE REVENUES (TRANSFEREE)

LOSSES FROM SALE-LEASEBACK TRANSACHONS

DIRECT LOAN ORIGINAHON COSTS FOR MORTGAGE LOANS HELD FOR SALE

FEES PAID TO PERMANENT INVESTORS PRIOR TO SALE OF MORTGAGE LOANS

PENSION-RELATED DEFERRED OUTFLOWS OF RESOURCES

TOTAL DEFERRED OUTELOWS OE RESOURCES

0.00

0.00

0.00

0.00

0.00

0.00 0.00

0.00

0.00

$0.00

39

ANNUAL FISCAL REPORT (APR) FOR 2017 AGENCY: 20-lF - Ascension St. James Airport and Transportation Authority PREPARED BY: David Holloway PHONE NUMBER: 225-293-8300 EMAIL ADDRESS: [email protected]

SUBMITTAL DATE: 08/31/2017 05:09 PM

TOTAL ASSETS AISD DEFERRED OUTELOWS OE RESOURCES $14,357,073.00

LIABILITIES CURRENT LIABILITIES: ACCOUNTS PAYABLE AND ACCRUALS

ACCRUED INTEREST

DERIVATIVE INSTRUMENTS

AMOUNTS DUE TO PRIMARY GOVERNMENT

DUE TO FEDERAL GOVERNMENT

AMOUNTS HELD IN CUSTODY FOR OTHERS

UNEARNED REVENUES

OTHER CURRENT LIABILITIES

CURRENT PORTION OE LONG-TERM LIABILITIES:

CONTRACTS PAYABLE

COMPENSATED ABSENCES PAYABLE

CAPITAL LEASE OBLIGATIONS

ESTIMATED LIABILITY FOR CLAIMS

NOTES PAYABLE

BONDS PAYABLE

POLLUTION REMEDIATION OBLIGATIONS

OTHER LONG-TERM LIABILITIES

TOTAL CURRENT LIABILITIES

154,147.00

0.00

0.00

1,052.00

0.00

5,700.00

11,973.00

0.00

0.00

0.00

0.00

0.00

0.00

15,000.00

0.00

0.00

$187,872.00

NONCURRENT PORTION OE LONG-TERM LIABILITIES: CONTRACTS PAYABLE

COMPENSATED ABSENCES PAYABLE

CAPITAL LEASE OBLIGATIONS

ESTIMATED LIABILITY FOR CLAIMS

NOTES PAYABLE

BONDS PAYABLE

NET OPEB OBLIGATION

NET PENSION LIABILITY

POLLUTION REMEDIATION OBLIGATIONS

OTHER LONG-TERM LIABILITIES

UNEARNED REVENUE

TOTAL LONG-TERM LIABILITIES TOTAL LIABILITIES

0.00

0.00

0.00

0.00

0.00

664,850.00

0.00

0.00

0.00

0.00

0.00

$664,850.00

$852,722.00

DEFERRED INFLOWS OE RESOURCES ACCUMULATED INCREASE IN FAIR VALUE OF HEDGING DERIVATIVES

DEFERRED AMOUNTS ON DEBT REFUNDING

ADJUSTMENT OF CAPITAL LEASE OBLIGATIONS

GRANTS RECEIVED PRIOR TO MEEHNG TIME REQUIREMENTS

SALES/INTRA-ENHTY TRANSFER OF FUTURE REVENUES (TRANSFEROR)

GAINS FROM SALE-LEASEBACK TRANSACTIONS

POINTS RECEIVED ON LOAN ORIGINATION

LOAN ORIGINAHON FEES RECEIVED FOR MORTGAGE LOANS HELD FOR SALE

PENSION-RELATED DEFERRED INFLOWS OF RESOURCES

TOTAL DEFERRED INFLOWS OE RESOURCES

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

$0.00

NET POSITION: NET INVESTMENT IN CAPITAL ASSETS RESTRICTED FOR:

13,105,852.00

40



CAPITAL PROJECTS 0.00 DEBT SERVICE 149,499.00

NONEXPENDABLE 0.00

EXPENDABLE 0.00

OTHER PURPOSES 0.00

UNRESTRICTED $249,000.00

TOTAL NET POSITION $13,504,351.00

41



STATEMENT OE ACTIVITIES

PROGRAM REVEIVUES

OPERATING GRANTS CAPITAL GRANTS EXPENSES CHARGES FOR SERVICES AND CONTRIBUTIONS AND CONTRIBUTIONS NET (EXPENSE) REVEIVUE

889,317.00 387,972.00 9,484.00 955,950.00 $464,089.00

GENERAL REVEIVUES

PAYMENTS FROM PRIMARY GOVERNMENT 0.00

OTHER 17,104.00

ADDITIONS TO PERMANENT ENDOWMENTS 0.00

CHANGE IN NET POSITION $481,193.00

NET POSITION - BEGINNING $13,023,158.00

NET POSITION - RESTATEMENT 0.00

NET POSITION - EIVDING $13,504,351.00

42



DUES AISD TRANSFERS

Account Type Amounts due from Primary Government Intercompany (Fund) Amount

GF - General Fund 71,557.00

Total $71,557.00

Account Type Amounts due to Primary Government Intercompany (Fund) Amount

GF - General Fund 1,052.00

43



FUISD BALANCE/NET POSITION RESTATEMENT

Account Name/Description Restatement Amount

Total $0.00

44

ascension-st. james airport and transportation …...31, 2017, on our consideration of ascension -...

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