South Louisiana Economic Council - LLA Default …app1.lla.state.la.us/PublicReports.nsf/8DAF91959A6866E...South Louisiana Economic Council, Inc. For the years ended December 31, 2007

Financial Report

South Louisiana Economic CouncilAssumption • Lafburche * St. Mary • Terrebonne

Thibodaux, LA

For the years ended December 31, 2007 and 2006

Jnder 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 Pate 7

South Louisiana Economic Council, Inc.


Introductory Section

Title Page

Table of Contents

Financial Section

Independent Auditor's Report

Statements of Financial Position

Statements of Activities

Statement of Functional Expenses - 2007

Statement of Functional Expenses - 2006

Statements of Cash Flows

Notes to Financial Statements

Special Reports of Certified Public Accountants

Report on Internal Control Over Financial Reporting andon Compliance and Other Matters Based on an Auditof Financial Statements Performed in Accordance withGovernment Auditing Standards

Schedule of Findings and Responses

Reports by Management

Schedule of Prior Year Findings and Responses

Management's Corrective Action Plan

Exhibit

A

B

C

D

E

F

PageNumber

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ii

1 -2

3

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5

6

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1 6 - 1 7

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20

FINANCIAL SECTION

r"J<l±JB o u r g e o i s B e n n e t t

To the Board of Directors,South Louisiana Economic Council, Inc.,

Thibodaux, Louisiana

We have audited the accompanying statements of financial position of South LouisianaEconomic Council, Inc. (the Council), a non-profit organization, as of December 31, 2007 and2006 and the related statements of activities, functional expenses and cash flows for the yearsthen ended. These financial statements are the responsibility of the Council's management. Ourresponsibility 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 theUnited States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all materialrespects, the respective financial position of South Louisiana Economic Council, Inc., as ofDecember 31, 2007 and 2006, and its changes in net assets and cash flows for the years thenended in conformity with accounting principles generally accepted in the United States ofAmerica. In accordance with Government Auditing Standards, we have also issued our reportdated June 5, 2008 on our consideration of the Council's internal control over financial reportingand our tests of its compliance with certain provisions of laws, regulations, contracts and grantagreements and other matters. The purpose of that report is to describe the scope of our testing

11340 West Tunnel Blvd., Suite 226 Certified PublicP.O. Box 2168 Accountants ] ConsultantsHoumo, LA 70361 -2168 A Limited Liability CompanyPhone (985) 868-0139Fox (985) 879-1949

P.O. Box 60600 507-0 St. Philip St.New Orleans. LA 70160-0600 P.O. Box 1205Heritage Plaza, 17th Floor Thibodaux, LA 70302-1205Phone (504) 831-4949 Phone (985) 447-5243Fax (504J 833-9093

of internal control over financial reporting and compliance and the results of that testing, and notto provide an opinion on the internal control over financial reporting or on compliance. Thatreport 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.

0Certified Public Accountants.

Thibodaux, Louisiana,June 5, 2008.

Exhibit A

STATEMENTS OF FINANCIAL POSITION


December 31, 2007 and 2006

2007AssetsCurrent assets

CashGrant and contract receivablesPrepaid auto leasePrepaid printingDue from LA 1 CoalitionDue from Restore or Retreat

Total current assets

Property and equipmentOffice furniture and equipmentAccumulated depreciation

Property and equipment, net

Other assetsDeposits

Total assets

606

2006

$ 145,538 5124,156

18,3102,370

16,3975,754

312,525

140,418(122,824)

17,594

6 44,89174,042

6,9713,750

11,4901,802

142,946

137,602(113,765)

23,837

606

$ 330,725 $ 167,389

LiabilitiesCurrent liabilities

Accounts payableLine of creditRefundable advancesOther accrued liabilities

Total liabilities

Net AssetsUnrestrictedTemporarily restricted

Total net assets

Total liabilities and net assets

S 109,163 $69,533

1,1953,049

182,940

(16,253)164,038

147,785

23,814100,000

1,1952,817

127,826

39,563

39,563

$ 330,725 $ 167,389

See notes to financial statements

STATEMENTS OF ACTIVITIES

South Louisiana Economic Council, Inc


Exhibits

2007 2006Unrestricted support and revenues

Governmental grants and contractsPrivate donationsSeminar and conference sponsorship revenuesUse of contributed facilityInterest incomeOther Income

Total unrestricted support and revenues

ExpensesEconomic development programsGeneral and administrative

Total expenses

Decrease in Unrestricted Net Assets

Temporarily Restricted Net AssetsGovernmental Grants

Increase (decrease) in Net Assets

Net AssetsBeginning of year

End of year

S 945,76145,0007,2839,100464-

1,007,608

947,822115,602

1,063,424

$ 558,21450,0008,4979,100

17113,991

639,973

446,046235,594

681,640

(55,816)

164,038

108,222

39,563

(41,667)

81,230

147,785 S 39,563


Exhibit C

STATEMENT OF FUNCTIONAL EXPENSES


For the year ended December 31, 2007

AdvertisingAutomobile expensesBank chargesDepreciationDues & subscriptionsEntertainmentInsuranceInterestLeaseMeeting expenseMiscellaneousOffice suppliesPayroll taxesPostagePrintingProfessional feesRent expenseSalariesTelephoneTraining programsTravelUtilites

Total expenses

EconomicDevelopment

Programs

$ 25,0893,759

1037,958

13,788-

6,8971,2734,412

13,2042,3998,780

15,608918

6,372556,964

4,914226,682

6,5161,332

40,000854

$ 947,822

Generaland

Administrative

$ 3,232-

1091,1012,2093,000

30,0728,2982,3269,8104,743

827996

2,1592,551

21,1104,186

15,0233,850

---

$ 115,602

Total

$ 28,3213,759

2129,059

15,9973,000

36,9699,5716,738

23,0147,1429,607

16,6043,0778,923

578,0749,100

241,70510,366

1,33240,000

854

$ 1,063,424

See notes to financial statements.

STATEMENT OF FUNCTIONAL EXPENSES

South Lafourche Economic Council, Inc.


Exhibit D

EconomicDevelopment

Programs

AdvertisingAutomobile expensesBank chargesDepreciationDues & subscriptionsInsuranceInterestLeaseMeeting expenseMiscellaneousOffice suppliesPayroll taxesPostagePrintingProfessional feesRent expenseSalariesTelephoneTraining programsTravel

Current liabilitiesTotal expenses

Generaland

Administrative Total

$ 10,092 $8,459

-9,0042,0256,150

-4,3664,774

4413,44311,352

1,2062,088

198,7894,914

132,0385,6704,668

26,964

2,104 3-

3043,1146,849

31,1543,169

-14,7345,052

9927,504

3666,064

57,2494,186

87,2942,9002,559

-

> 12,1968,459

30412,1188,874

37,3043,1694,366

19,5085,096

14,43518,856

1,5728,152

256,0389,100

219,3328,5707,227

26,964

446,046 $ 235,594 $ 681,640

See notes to financial statements.

Exhibit E

STATEMENTS OF CASH FLOWS



2007 2006Cash flows from Operating Activities:

Increase in net assets S 108,222 (41,667)Adjustments to reconcile decrease in net assets to net

cash provided by (used in) operating activities:Depreciation 9;059 12,118

Decrease (increase) in operating assets:Grant and contract receivables (50,114) 29,929Prepaid automobile lease and printing (9,959) 8,366Due from LAI Coalition (4,907) (4,263)Due from Restore or Retreat (3,952) 3,476

Increase (decrease) in operating liabilities:Accounts payable 85,349 (45,673)Unearned revenue - (42,000)Other accrued liabilities __ 232 1,097

Total adjustments 25,708 (36,950)

Net cash provided by (used in) operating activities 133,930 (78,617)

Cash flows from Investing Activities:Equipment purchased (2,816) -

Cash flows from Financing Activities:Borrowings (repayment) line of credit, net (30,467) 100,000

Net increase in cash 100,647 21,383

Cash at beginning of year 44,891 23,508

Cash at end of year S 145,538 S 44,891


Exhibit F

NOTES TO FINANCIAL STATEMENTS


December 31, 2007 and 2006

Note 1 - Summary of Significant Accounting Policies

a) Nature of Organization

The South Louisiana Economic Council, Inc. (the Council), a non-profitcorporation, was organized on March 16, 1984, to encourage economicdevelopment in the four parish area of Assumption, Lafourche, St. Mary, andTerrebonne. The objective of the Council is to spur economic growth byencouraging and facilitating existing local industry to expand and to enticeindustry from out-of-state to locate in the region. The Council also acts ascoordinator for various economic and workforce development activities andprograms in the four-parish area. The Council is supported primarily throughunrestricted grants from the local governments within the four-parish area itserves, grants from the State Government of Louisiana and by unrestricted supportreceived from local private industry. Governmental grants comprisedapproximately 94% and 89% of total unrestricted support and revenue for theyears ended December 31, 2007 and 2006, respectively.

b) Financial Statement Presentation

Financial statement presentation follows the recommendations of the FinancialAccounting Standards Board in its Statement of Financial Accounting Standards(SFAS) No. 117, "Financial Statements of Not-for-Profit Organizations". UnderSFAS No. 117, the Council is required to report information regarding its financialposition and activities according to three classes of net assets: unrestricted netassets, temporarily restricted net assets, and permanently restricted net assets. TheCouncil had no temporarily restricted net assets or permanently restricted netassets at December 31, 2007 and 2006.

Exhibit F(Continued)

Note 1 - Summary of Significant Accounting Policies (Continued)

c) Basis of Accounting

The financial statements of the Council have been prepared on the accrual basis ofaccounting and accordingly reflect all significant receivables, payables, and otherliabilities,

d) Use of Estimates

The preparation of financial statements in conformity with accounting principlesgenerally accepted in the United States of America requires management to makeestimates and assumptions that affect the reported amounts of assets and liabilitiesand disclosure of contingent assets and liabilities at the date of the financialstatements and the reported amounts of revenues and expenses during thereporting period. Actual results could differ from those estimates

e) Cash and Cash Equivalents

For purposes of the statement of cash flows, the Council considers all highlyliquid investments available for current use with an initial maturity of threemonths or less to be cash equivalents. The Council had no cash equivalents atDecember 31, 2007 and 2006.

f) Revenue Recognition

The Council follows the guidance of Statement of Financial Accounting Standards(SFAS) No. 116, "Accounting for Contributions Received and ContributionsMade." In accordance with SFAS No. 116, contributions and grants are recordedas unrestricted, temporarily restricted, or permanently restricted depending on theexistence or nature of the grantor restrictions. Support that is restricted by Stateand Federal grants are reported as an increase in unrestricted net assets if therestriction expires in the reporting period in which the support is recognized. Allother grant-restricted support is reported as an increase in temporarily orpermanently restricted net assets, depending on the nature of the restriction. Whena restriction expires(that is, when a stipulated time restriction ends or purposerestriction is accomplished), temporarily restricted net assets are reclassified tounrestricted net assets and reported in the Statement of Activities as net assetsrelease from restrictions.


Note 1 - Summary of Significant Accounting Policies (Continued)

g) Property and Equipment

Property and equipment are recorded at historical cost and are depreciated on thestraight-line method over their estimated useful lives as follows:

Office equipment 3-7 yearsLeasehold improvements 10 years

Expenditures for renewals and betterments are capitalized and expenditures forordinary maintenance and repairs are expensed as incurred. The cost andaccumulated depreciation applicable to assets retired or sold, if any, are removedfrom the respective accounts and gains or losses thereon are included inoperations. Depreciation expense for the year ended December 31, 2007 and 2006total $9,059 and $12,118, respectively.

h) Accumulated Vacation and Sick Leave

Vacation does not carryover to future years, but sick leave does carryover. All fulltime employees earn one day of sick leave per month worked which may beaccumulated and carried forward from year to year up to a maximum of 240 hoursor 30 days. Accumulated sick leave is not payable to employees upon terminationand is therefore not accrued.

i) Advertising Costs.

Advertising costs are charged to operations when incurred, except for direct-response advertising. The costs of direct-response advertising are capitalized andamortized over the period which future benefits are expected to be received.There were no direct-response advertising costs incurred during the year.Advertising costs incurred and charged to operations was $28,321 and $12,196 forthe year ended December 31, 2007 and 2006, respectively.

j) Income Taxes

The Council is a non-profit organization and is exempt from income taxes underSection 501(c) (3) of the Internal Revenue Code of 1986, as amended. TheCouncil does not participate in activities that produce unrelated business taxableincome. Accordingly, no provisions for income taxes have been made in thefinancial statements.

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Note 2 - Restrictions On Net Assets

Temporary restricted net assets are restricted by state grants for specific purposes andfor use in subsequent periods. At December 31, 2007, temporarily restricted netassets included $164,038 to be spent on various budgeted grant expenses.

Note 3 - Concentrations of Credit Risk

The Council maintains bank accounts at two banks. Accounts at these institutions areinsured by the Federal Deposit Insurance Corporation (FDIC) up to $100,000. AtDecember 31, 2007, amounts on deposit at these banks exceeded FDIC insurance by$ 47,613. At December 31, 2006, amounts on deposit at these banks did not exceedFDIC insurance.

Note 4 - Funding

The Council receives funding primarily through grants and contracts from localgovernments and corporations, and from governmental and corporate sponsorships foreconomic development and training seminars hosted by the Council.

Governmental funding grants were received from the following sources during theyear:

2007 2006Federal Government:

Nicholls State University - Center for EconomicGrowth and Development S 2,276 $ 57,107

State of Louisiana:Department of Economic Development 626,331 281,471Department of Treasury 113,382 111,540L.E. Fletcher Community College 10,916Louisiana Business Incubator Association 9,434Louisiana Small Business Development Center 77,635University of Louisiana at Lafayette - Louisiana

Procurement Technical Assistance Center 45,787 16,796Lafourche Parish 25,000 56,300St. Mary Parish 25,000 25,000Other 10,000 10,000

Totals S 945,761 $ 558,214

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Note 4 - Funding (Continued)

During the year ended December 31, 2006, the Council entered into a cooperativeendeavor (contract) with the Louisiana Department of Economic Development(LED), pursuant to this contract the Council is to provide services to initiate planningfor the establishment of the Center for Economic Growth and Technology inThibodaux, Louisiana. The contract calls for payments to be made to the Council ona cost reimbursement basis. In 2007, the Louisiana Department of EconomicDevelopment contributed $211,576 to the establishment of the Center. Additionallyin 2007, the Louisiana State Treasury and the Federal government contributed$113,382 and $2,277, respectively, toward the establishment of the Center. Duringthe years ended December 31, 2007 and 2006, the Council earned and expended$327,234 and $338,578 respectively, related to the Center, representingapproximately 35% and 61% of the Council's government grants and contracts,respectively.

Note 5 - Allocation of Expenses

The cost of providing various activities has been summarized on a functional basis inthe statement of activities. Accordingly, certain costs have been allocated among theprograms and activities benefited.

Note 6 - Deferred Compensation Plan

Employees of the Council have the option to participate in a deferred compensationprogram as defined by Internal Revenue Code Section 403 (b) (tax shelteredannuities). The Council has the responsibility for withholding and remittingcontributions from participants to the plan. There is no (zero) matching contributionrequirement for the Council. An insurance company serves as administrator and hasthe responsibility for maintaining a deferred account with respect to each participant,investing the participant's account in accordance with the participant's investmentspecifications and reporting annually to the participant and the Company on the statusof the plan.

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Note 7 - Contributed Facility

The Council received an in-kind contribution, estimated by management to amount toapproximately $9,100 annually, for office space rentals during the years endedDecember 31, 2007 and 2006, from Nicholls State University at no cost to theCouncil. The estimated fair value of this facility is reported as unrestricted supportand expense in the period in which the facility was used.

Note 8 - Operating Lease

The Council leased a vehicle under a non-cancelable two year operating lease onNovember 14, 2005. The Council paid 100% of the cost of the lease in advance. Theportion of lease cost related to the current year is charged to operations, and theportion of the lease cost applicable to future periods is included on the balance sheetas a prepaid auto lease. For the year ended December 31, 2007 and 2006, leaseexpense incurred totaled $3,636 and $8,366.

The Council has entered into two operating lease agreements for office equipment.The agreements are for three years. One expired on July 5, 2007 and the other willexpire on September 5, 2008. The monthly rentals total $521. Total lease paymentsfor the years 2007 and 2006 were $5,111 and $6,258, respectively. The minimumremaining lease payments for 2008 are $2,228.

Note 9 - Prepaid Printing

During the year ended December 31, 1996, the Council purchased prepaid specializedprinting services from the South Central Planning Commission. As services arerendered to the Council the prepaid amount is credited. The original amount of thecontract was $5,000 and the balance at December 31, 2007 and 2006 is $2,370 and$3,750.

Note 10- Economic Dependence

The Council receives a substantial portion of its funding from a limited number ofsources. Should one or more of these sources withdraw funding, the Council wouldnot be able to sustain operations as it is presently structured.

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Note 11 - Related Parties

The Council entered into an agreement to provide administrative, secretarial, support,and payroll services, to the LA 1 Coalition, a not for profit entity whose mission is toimprove the condition of Louisiana Highway 1 in lower Lafourche Parish to PortFourchon, which is an issue management believes is related to the economic successand viability of the region. The Council is reimbursed for salaries and related payrolltaxes after each pay period. The Council also received $5,000 as compensation forun-reimbursed time and expenses during the year ended December 31, 2007 and2006.

The Council also entered into an agreement to provide administrative, secretarial,support, and payroll services, to Restore or Retreat, Incorporated, a not for profitentity whose mission is to engage in solutions to achieve comprehensive coastalrestoration of the Barataria and Terrebonne estuaries, which is an issue managementbelieves is related to the economic success and viability of the region. The Council isreimbursed for salaries and related payroll taxes after each pay period. The Councilalso received $5,000 as compensation for un-reimbursed time and expenses during theyears ended December 31, 2007 and 2006.

During the year ended December 31, 2003 the Council entered into a continuingcontract with the secretary-treasurer of the board. Under the terms of the contract,this individual will provide operational and administrative services as needed to theCouncil at an hourly rate of $125. During the years ended December 31, 2007 and2006, the council paid $29,876 and $10,188, respectively, for services rendered underthe contract.

Note 12- Line of Credit

On July 29, 2005 the Council obtained a $100,000 revolving line of credit fromCoastal Commerce Bank to help finance its operating needs. On October 26, 2007the Council increased this line of credit to $300,000. The loan is secured by accountswith the bank and accounts receivable. Interest is payable on outstanding balances atthe Bank's "Prime" interest rate. The outstanding balance is due upon demand of theLender or in full by June 2025. At December 31, 2007 and 2006, the "Prime" interestrate was 8.25% and 8.95% and the Council's line of credit balance was $69,533 and$100,000, respectively. As of December 31, 2007 the Council had an availablebalance of $230,467.

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Note 13 - SUBSEQUENT EVENT

On February 1, 2008, the Council entered into a lease agreement for a building inThibodaux, LA. The lease is for one year and with the option to renew at year end,The lease payments will not exceed $1,000 per month at 100% occupancy. Theminimum lease payment is $500. The payments will be determined on a square footleased pro rata basis.

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SPECIAL REPORTS OF CERTIFIED PUBLIC ACCOUNTANTS

B o u r g e o i s B e n n e t t

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ONCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITH GOVERNMENT AUDITING STANDARDS

To the Board of Directors,South Louisiana Economic Council, Inc.,

Thibodaux, Louisiana.

We have audited the financial statements of South Louisiana Economic Council, Inc., (theCouncil), as of and for the year ended December 31, 2007, which collectively compromise theCouncil's financial statements and have issued our report thereon dated June 5, 2008. We con-ducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the Council's internal control overfinancial reporting as a basis for designing our auditing procedures for the purpose of expressingour opinions on the financial statements, but not for the purpose of expressing an opinion on theeffectiveness of the Council's internal control over financial reporting. Accordingly, we do notexpress an opinion on the effectiveness of the Council's internal control over financial reporting.

A control deficiency exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, to preventor detect misstatements on a timely basis. A significant deficiency is a control deficiency, orcombination of control deficiencies, that adversely affects the Council's ability to initiate,authorize, record, process, or report financial data reliably in accordance with generally acceptedaccounting principles such that there is more than a remote likelihood that a misstatement of theCouncil's financial statements that is more than inconsequential will not be prevented or detectedby the Council's internal control.

161340 West Tunnel Blvd.. Suite 226 Certified PublicP.O. Box 2! 68 Accountants [ ConsultantsHouma LA 70361-2168 A Limited Liability CompanyPhone (985| 868-0139Fox (985)879-1949

P.O. Box 60600 507-D SI. Philip 51.New Orleans, IA 70160-0600 P.O. Box 1205Heritage Plaza, 17"1 Floor Thibodaux, LA 70302-1205Phone (504} 831-4949 Phone (985) 447-5243Fax (504) 833-9093

A material weakness is a significant deficiency, or combination of significant deficienciesthat results in more than a remote likelihood that a material misstatement of the financialstatements will not be prevented or detected by the Council's internal control.

Our consideration of internal control over financial reporting was for the limited purposedescribed in the first paragraph of this section and would not necessarily identify all deficiencies ininternal control that might be significant deficiencies or material weaknesses. We did not identifyany deficiencies in internal control over financial reporting that we consider to be materialweaknesses, as defined above.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Council's financial statementsare free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts, and grant agreements, noncompliance with which could have a directand material effect on the determination of financial statement amounts. However, providing anopinion 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 no instances ofnoncompliance or other matters that are required to be reported under Government AuditingStandards.

This report is intended solely for the information and use of the Board of Directors,management, the Legislative Auditor for the State of Louisiana and others within the entity and isnot intended to be and should not be used by anyone other than these specified parties. UnderLouisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a publicdocument.

Q

Certified Public Accountants.

Thibodaux, Louisiana,June 5, 2008.

17

SCHEDULE OF FINDINGS AND RESPONSES



Section I Summary of Auditor's Results

a) Financial Statements

Type of auditor's report issued: unqualified

Internal control over financial reporting:

• Material weaknesses identified? yes X no* Significant deficiencies identified that are not

considered to be material weaknesses? yes X none reported

Noncompliance material to financial statements noted? yes X no

b) Federal Awards

South Louisiana Economic Council, Inc. did not expend federal awards greater than $500,000during the year ended December 31, 2007,

Section II Financial Statement Findings

No financial statements findings were noted during the audit for the year ended December 31,2007.

Section III Federal Award Findings and Questioned Costs

Not applicable.

18

REPORTS BY MANAGEMENT

SCHEDULE OF PRIOR YEAR FINDINGS AND RESPONSES

South Louisiana Economic Council, inc.


Section I Internal Control and Compliance Material to the Financial Statements

Internal Control

No material weaknesses were reported during the audit for the year ended December 31,2006.No reportable conditions were reported during the audit for the year ended December 31,2006.

Compliance

No compliance findings material to the financial statements were noted during the audit for theyear ended December 31, 2006.

Section II Internal Control and Compliance Material to Federal Awards

South Louisiana Economic Council, inc. did not expend federal awards greater than $500,000during the year ended December 31, 2006.

Section III Management Letter

A management letter was not issued in connection with the audit of the financial statements forthe year ended December 31, 2006.

19

MANAGEMENT'S CORRECTIVE ACTION PLAN



Section I Internal Control and Compliance Material to the Financial Statements

Internal Control

No material weaknesses were reported during the audit for the year ended December 31,2007.No significant deficiencies were reported during the audit for the year ended December 31,2007.

Internal Control

No compliance findings material to the financial statements were noted during the audit forthe year ended December 31, 2007.

Section II Internal Control and Compliance Material to Federal Awards

South Louisiana Economic Council, Inc. did not expend federal awards greater than $500,000during the year ended December 31, 2007.

Section III Management LetterA management letter was not issued in connection with the audit for the year endedDecember 31,2007,

20

Documents

South Louisiana Economic Council - LLA Default …app1.lla.state.la.us/PublicReports.nsf/8DAF91959A6866E...South Louisiana Economic Council, Inc. For the years ended December 31, 2007