AUDUBON COMMISSION

Audits of Financial Statements

December31, 2017 and 2016

LAPORTE CPA> « BUSINESS ADVISORS Contents

Independent Auditor's Report 1 -3

Management's Discussion and Analysis 4-12

Financial Statements

Statements of Net Position 13-14

Statements of Revenues, Expenses, and Changes in Net Position 15

Statements of Cash Flows 16

Notes to Financial Statements 17 - 30

Uniform Guidance

Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 32 - 34

Schedule of Expenditures of Federal Awards 35

Note to Schedule of Expenditures of Federal Awards 36

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 37 - 38

Schedule of Findings and Questioned Costs 39

Summary Schedule of Prior Audit Findings 40

Other Supplementary Information

Combining Schedule of Revenues, Expenses, and Changes in Net Position 42

Schedule of Compensation, Benefits, and Other Payments to Agency Head 43 T A T># LaPorte, APAC I -/A r ii fx \ ,C/ 111 Veterans Blvd. I Suite 600 CPA» & BUSINESS ADVISORS Metaitic, LA 70005 504.835.5522 I Fax 504.835.5535 LaPorte.com

Independent Auditor's Report

To the Board of Directors of Audubon Commission

Report on the Financial Statements We have audited the accompanying financial statements of the Audubon Commission (the Commission), which comprise the statements of net position as of December 31, 2017 and 2016, the related statements of revenues, expenses, and changes in net position and cash flows for the years then ended, and the related notes to the financial statements.

Management's 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.

Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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 from 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 auditor's 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 auditor considers 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 purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express 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.

LOUISIANA -TEXAS An Indcpendcnily Owned Member, RSM US Alliance RSU US AiliAnceitiembsr firms ar« seosraleand indepenctant businassas and Ie9al cniides that are responsible for (heir cwnaasand omissions, and each Is separaie andindepertdent from ASM US LLP. RSM USLLP is the U.S. member firm of RSU Irsternaliorsal. a global networkOf independent audit, tax, and coitsultrng firms. Members of RSM US AlliarKehave access to RSM Irsiernatlonal resources through RSM tfS LLP but ace not member finms of RSM Itscerrsatiortal. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Commission as of December 31, 2017 and 2016, and the changes in its financial position and cash flows for the years then ended in conformity 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 that the management's discussion and analysis, on pages 4 through 12, be presented to supplement the financial statements. Such information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board (GASB) who considers it to be an essential part of financial reporting for placing the 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 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 any assurance.

Other Supplementary Information

Our audits were conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Commission's financial statements. The combining schedule of revenues, expenses, and changes in net position and schedule of compensation, benefits and other payments to agency head are presented for purposes of additional analysis and are not a required part of the financial statements. The information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such 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 schedule of revenues, expenses, and changes in net position and schedule of compensation, benefits and other payments to agency head are fairly stated, in all material respects, in relation to the basic 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 June 4, 2018, on our consideration of the Commission'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 in considering the Commission's internal control over financial reporting and compliance.

A Professional Accounting Corporation

Metairie, LA June 4, 2018 AUDUBON COMMISSION

Management's Discussion and Analysis

The discussion and analysis of the Audubon Commission's (the Commission) financial performance provides an overall review of the Commission's financial activities for the years ended December 31, 2017 and 2016. It should be read in conjunction with the financial statements in this report.

Overview of Financial Statements This annual report consists of six components - Independent Auditor's Report, Management's Discussion and Analysis (this section). Financial Statements, Uniform Guidance, Report on Internal Control Over Financial Reporting and on Compliance and Other Matters, and Other Supplementary Information.

The Financial Statements of the Commission present the financial position of the Commission, the results of its operations and its cash flows. The Financial Statements are prepared on the accrual basis of accounting.

The Statements of Net Position includes all of the Commission's assets and liabilities and provides information about the Commission's investments in resources (assets) and its obligations to creditors (liabilities). It also provides information on the capital structure, liquidity, and financial flexibility of the Commission.

The Statements of Revenues, Expenses, and Changes in Net Position reports on the current year's performance of the Commission's operations.

The Statements of Cash Flows provides information on the Commission's cash from operations and capital and related financing activities.

The Notes to Financial Statements provide information that is essential in order to gain a full understanding of the data in the basic financial statements.

The Other Supplementary Information section provides information on the Combining Schedule of Revenues, Expenses, and Changes in Net Position.

Financial Highlights Net position increased by $8,359,077, or 7%, in 2017. In 2016, net position increased by $12,727,090, or 12%.

Additions to capital assets totaled $12,229,953 in 2017 and $16,137,315 in 2016, respectively. AUDUBON COMMISSION

Management's Discussion and Analysis

Operating Facilities Net Results for the Year Ended December 31, 2017 with Prior Years and Budget Comparisons

Actual Actual Actual Budget Budget (in thousands) 2017 2016 2015 2017 2016 Aquarium and Riverfront Park $ 6,547 $ 6,995 $ 6,250 $ 6,292 $ 6,310 Zoo & Audubon Park (5,767) (5,452) (4,608) (4,955) (4,879) Butterfly Garden and Insectarium 401 (116) 39 39 23 Species Survival Center/Research Center (621) (755) (858) (748) (900) Louisiana Nature Center (129) - - (257) (100)

Total Operations * 431 672 823 $ 371 $ 454

Net Capital income and Expense 7,928 12,055 5,603

Change in Net Position $ 8,359 $ 12,727 $ 6,426

•Excludes capital revenues and expenditures and the depreciation associated with buildings and fixed exhibitory.

Condensed Statement of Revenues, Expenses, and Changes in Net Position

Year Ended December 31 Change Change 2017 2016 2015 2016 to 2017 2015 to 2016 Operating Revenues $ 42,522,381 $ 43,349,052 $ 42,874,708 !B (826,671) $ 474,344 Operating Expenses 59,901,493 60,091,179 60,314,080 (189,686) (222,901)

Operating Loss (17,379,112) (16,742,127) (17,439,372) (636,985) 697,245

Nonoperating Revenues, Net 25,738,189 29,469,217 23,864,925 (3,731,028) 5,604,292

Change in Net Position 8,359,077 12,727,090 6,425,553 (4,368,013) 6,301,537

Beginning Net Position 118,515,411 105,788,321 99,362,768 12,727,090 6,425,553

Ending Net Position $ 126,874,488 $ 118,515,411 $ 105,788,321 :B 8,359,077 $ 12,727,090 AUDUBON COMMISSION

Management's Discussion and Analysis

Comments on Condensed Statement of Revenues, Expenses, and Changes in Net Position

Operating Revenues Operating revenues decreased by $826,671 in 2017 mainly due to a reduction in attendance caused by adverse weather during the year. Also, all facilities were impacted by several city mandated closures during the year due to inclement weather. This adversely affected gift shop, concessions, and Cool Zoo revenue. However, admissions revenue grew to $17,233,646 due to an increase in admissions prices in 2017. Membership revenue totaled $5,679,097, which was similar to prior year revenue. No new significant exhibits/attractions opened at the Aquarium, Insectarium, or the Zoo, however, Audubon was in the planning stages of several capital projects. In 2016, revenues had increased by $474,344 due to an increase in admissions prices as well as an increase in membership and concessions revenue coupled with a decrease in gift shop and Cool Zoo revenue.

Operating Expenses Contractual services, materials, supplies, and other expense decreased by $648,585 due to cost monitoring measures. Salaries and benefits had only a slight increase of $114,520 due to overall consistency in operations and cost controls.

Non-Operating Revenues ether non-operating revenues decreased mainly due to a reduction in reimbursements for capital projects.

Dedicated tax revenues increased by $400,000 and $859,309 in 2017 and 2016, respectively.

Net Capital Assets

Aquarium Species Survival and Butterfly Center/ Louisiana Riverfront Garden and Zoo and Research Nature Park Insectarium Audubon Park Center Center Total Balance December 31, 2015 $ 41,966,353 $ 15,710,163 $ 69,162,147 $ 12,169,865 $ 4,062,319 (5 143,070,847 Additions 1,219,622 18,885 6,272,006 3,329,968 5,296,833 16,137,315 Depreciation/Disposais (3,449,817) (1,287,501) (4,563,834) (757,079) - (10,058,232)

Balance December 31, 2016 39,736,158 14,441,547 70,870,319 14,742,754 9,359,152 149,149,930 Additions 1,007,216 - 6,622,681 2,508,338 2,091,718 12,229,953 Depreciation/Disposais (3,414,177) (1,289,232) (4,591,698) (793,318) (17,329) (10,105,754)

Balance December 31, 2017 $ 37,329,197 $ 13,152,315 $ 72,901,302 $ 16,457,774 $ 11,433,541 (5 151,274,129 AUDUBON COMMISSION

Management's Discussion and Analysis

Condensed Statement of Net Position

Change Change 2017 2016 2015 2016 to 2017 2015 to 2016 Assets Cash and Cash Equivalents $ 459,391 :E 1,484,928 :E 1,318,396 $ (1,025,537) $ 166,532 Accounts Receivable, Net 444,110 307,544 343,998 136,566 (36,454) Inventory 1,319,527 1,417,749 1,366,267 (98,222) 51,482 Prepaid Expenses 724,942 561,419 719,574 163,523 (158,155) Restricted Assets 4,194,011 4,296,649 3,455,511 (102,638) 841,138 Nondepreciable Capital Assets 18,958,095 20,134,433 12,856,508 (1,176,338) 7,277,925 Depreciable Capital Assets, Net 132,316,034 129,015,497 130,214,339 3,300,537 (1,198,842) Other Assets, Nonrestricted 7,989,458 8,105,247 8,221,036 (115,789) (115,789)

Total Assets 166,405,568 165,323,466 158,495,629 1,082,102 6,827,837

Deferred Outflows of Resources 75,833 176,944 278,055 (101,111) (101,111) Total Assets and Deferred Outflows of Resources $ 166,481,401 :E 165,500,410 :E 158,773,684 $ 980,991 $ 6,726,726

Liabilities Unrestricted Current Liabilities $ 6,775,458 :E 5,843,976 :E 6,287,641 $ 931,482 $ (443,665) Payables from Restricted Assets 6,569,233 8,468,800 7,233,517 (1,899,567) 1,235,283 Noncurrent Liabilities 26,262,222 32,672,223 39,464,205 (6,410,001) (6,791,982)

Total Liabilities 39,606,913 46,984,999 52,985,363 (7,378,086) (6,000,364)

Net Position Net Investment in Capital Assets 125,224,244 116,367,601 105,781,570 8,856,643 10,586,031 Unrestricted 1,650,244 2,147,810 6,751 (497,566) 2,141,059

Total Net Position 126,874,488 118,515,411 105,788,321 8,359,077 12,727,090

Total Liabilities and Net Position $ 166,481,401 :E 165,500,410 :E 158,773,684 $ 980,991 $ 6,726,726

Comments on Condensed Statement of Net Position Net capital assets increase of $2,124,199 in 2017 was due to capital asset additions of $12,229,953 offset by depreciation and disposals of $10,105,754.

Noncurrent liabilities decreased by $6,410,001 and $6,791,982 in 2017 and 2016, respectively. In each year, the decrease was due to debt service payments on bonds and a reduction in the amount owed to the Institute by the Commission in accordance with the terms of the Agreement between those two parties. AUDUBON COMMISSION

Management's Discussion and Analysis

Condensed Statement of Cash Flows

Change Change 2017 2016 2015 2016 to 2017 2015 to 2016 Net Cash Used in Operating Activities $ (7,953,315) $ (9,107,264) $ (9,306,589)$ 1,153,949 $ 199,325

Net Cash Provided by Capital and Related Financing Activities 6,927,778 9,273,796 9,399,054 (2,346,018) (125,258)

Net (Decrease) Increase in Cash and Cash Equivalents (1,025,537) 166,532 92,465 (1,192,069) 74,067

Cash and Cash Equivalents Beginning of Year 1,484,928 1,318,396 1,225,931 166,532 92,465

End of Year $ 459,391 $ 1,484,928 $ 1,318,396 $ (1,025,537) $ 166,532

Comments on Condensed Statement of Cash Flows Cash used in operating activities decreased in 2017 compared to 2016 due to normal fluctuations in operations. Cash provided by capital and related financing activities of $6,927,778 in 2017 was $2,346,018 less than 2016.

In 2017, there was an overall decrease in cash and cash equivalents of $1,025,537.

General Overview

2017 was marked by many successes for Audubon. With an eye on the future, Audubon remained committed to providing outstanding guest experiences and educational opportunities, while also developing partnerships to protect the wonders of nature.

Audubon looks to the future with optimism, ready to embark on new adventures and new ways to educate and inspire our community.

Major Achievements

• Audubon has created a once-in-a-lifetime opportunity to transform the zoo and aquarium industry by forming the Alliance for Sustainable Wildlife (ASW) in partnership with San Diego Zoo Global. It officially launched in September 2017 at Freeport-McMoRan Audubon Species Survival Center. The program provides a breeding haven for mammal and bird species declining in population, ensuring animals will engage and inspire future generations.

• Audubon Louisiana Nature Center, shuttered since Hurricanes Katrina and Rita destroyed its buildings and surrounding forest in 2005, reopened in October of 2017 to the delight of New Orleans East residents. The sprawling, 86-acre site has undergone a $11.5 million restoration that returns the Nature Center to its rightful place as a must-see destination for families throughout the region. Back are many of the popular features that were built in the years following the Nature Center's 1980 opening, including a planetarium, an 8,500- square-foot Exhibit Pavilion, classrooms, interactive educational exhibits, a network of trails and boardwalks, restrooms, animal care space, and parking. AUDUBON COMMISSION

Management's Discussion and Analysis

Dazzling new life-sized bronze sculptures were installed in the iconic Cooper Plaza fountain just in time for the 2017 Whitney Zoo-To-Do gala fundraiser. The new sculptures include five African elephants and five African lions inside the fountain, two meerkats on benches that ring the fountain, and new rock formations forming the base of the sculptures. Additional upgrades to the beloved New Orleans landmark continued throughout the year, including improved lighting, a geyser-type fountain, and smaller water jets that can be programmed for seasonal displays and special events.

Audubon Nature Institute was pleased to welcome Dr. Kyle Burks as its new Vice President and Managing Director of Audubon Zoo and Park. Kyle was selected from a list of highly qualified candidates from across the country and brings years of experience to Audubon. Burks has more than 20 years of broad-based management and animal care experience. His most recent position was Chief Executive Officer of Sacramento Zoo. Kyle also served as Executive Vice President and Chief Operating Officer of the Denver Zoo and as Insight Integration Manager at The Walt Disney Company. His career uniquely combines animal management with cutting-edge business principles.

Audubon Aquarium of the Americas and Audubon Zoo were among the winners of the USA TODAY 10 Best Readers' Choice travel award contest. The Aquarium ranked 4th and the Zoo secured 9th place among 20 nominees, all accredited by the Association of Zoos and Aquariums (AZA), that were "hand-picked by a panel of zoo and family travel experts."

Audubon Aquarium of the Americas garnered special recognition from the City of New Orleans in 2017 for efforts to address the growing plastics crisis in our oceans. Aquariums across the country are joining forces to shift away from single-use plastics and encourage consumers to demand alternatives as part of the "In Our Hands" consumer campaign of the Aquarium Conservation Partnership, a coalition of 19 aquariums, including Audubon Aquarium of the Americas, that are taking action together to advance ocean and freshwater conservation. As part of this initiative, Audubon has discontinued the use of plastic straws and bags in Aquarium concessions and gift shops.

As part of Alliance for Sustainable Wildlife (ASW), our Audubon experts participated in the release of 12 young endangered whooping cranes into a Louisiana wildlife refuge as part of a partnership with Chevron and Louisiana Department of Wildlife and Fisheries. Three of those cranes were hatched at Freeport-McMoRan Audubon Species Survival Center. In 2017, Audubon also released three endangered young Mississippi sandhill cranes into the free-flying population at the Mississippi sandhill crane refuge in Gautier, Mississippi.

A young Kemp's ridley sea turtle was found emaciated and dehydrated in Lake Calcasieu and brought to Audubon's Coastal Wildlife Network (CWN) for recovery in 2016. In May of 2017, in partnership with Louisiana Department of Wildlife and Fisheries, Audubon released the turtle, a federally-protected, critically-endangered species, back into the wild. It was just the latest in a series of successes for CWN, which has rehabilitated more than 200 sea turtles since 2010. AUDUBON COMMISSION

Management's Discussion and Analysis

Audubon's Gulf United for Lasting Fisheries (G.U.L.F.) partnered with Abita Brewing Company and Dirty Coast Press to help amplify their efforts to build a community that is knowledgeable and invested in Gulf seafood through a regional marketing campaign designed to educate consumers about the Gulf Coast seafood industry and its positive impact during National Seafood Month in October of 2017. The month kicked off at Scales & Ales, the Aquarium's fundraising event, on September 29, where Abita was the Exclusive Beer Sponsor, exclusive Dirty Coast t-shirts supporting G.U.L.F. were sold, and G.U.L.F. Restaurant Partners served up dishes crafted with local, sustainable seafood.

Audubon's Community Outreach Program, connected with minorities and underserved families in the Greater New Orleans Area to "celebrate the wonders of nature" at Audubon attractions in 2017. These are guests who otherwise may not have been able to experience the thrill of an Audubon visit. In addition, thanks to the Taylor/Audubon Students and Scholars Program, more than 211,000 high-achieving students in grades 7 through 12 statewide received free Audubon memberships as part of the ongoing initiative established by the Patrick F. Taylor Foundation to reward Louisiana students who work hard and earn good grades.

From military discounts to Parish Appreciation Days and half-price admission to Audubon Butterfly Garden and Insectarium during Mardi Gras, there were many ways for all members of the community to enjoy an Audubon visit in 2017. For example, at Audubon Zoo, moms were admitted free on Mother's Day and dads were welcomed free on Father's Day.

As a member of the Association of Zoos and Aquariums (AZA), Audubon participated in their "Invest in the Nest" fundraising campaign launched in 2017, which raised more than $190,000 for artificial nests for African penguins through crowdfunding on Kickstarter. The AZA partnership brought together scientists, engineers, accredited zoos and aquariums, and the public to construct nests for penguins in South Africa.

Audubon has continued to strengthen its social media initiatives, adding fans, friends, and followers daily. At year end, our social media network included more than 255,100 Facebook friends across four Facebook pages (including the newly-launched pages for Audubon Zoo and Audubon Aquarium of the Americas); 18,691 Twitter followers; 22,779 Instagram followers; and 116,250 email subscribers.

10 AUDUBON COMMISSION

Management's Discussion and Analysis

New Arrivals and Programs

• In September of 2017, the first new animal residents of the Alliance for Sustainable Wildlife (ASW) arrived at Freeport-McMoRan Audubon Species Survival Center to begin their new lives bolstering the populations of endangered and vulnerable species. The first arrivals include reticulated giraffe, sable, bongo, okapi, common eland, and yellow- backed duiker. Based on the conservation premise that a few hundred is a few hundred too few, ASW focuses on animals that live in large herds or flocks. These are species that by their very nature need space for large populations to be viable, sustainable breeding groups. In December, ASW experienced its first success with the birth of a critically-endangered Eastern bongo—the first animal conceived and born at ASW.

• An intriguing sculpture popped up on Zoo grounds mid-year, and before long. Zoo visitors were learning about dwindling bee populations and pollinator conservation. The Bee Palace, an oversized sculpture of a stylized beehive, is not only a home where solitary bees can lay their eggs, but also the perfect way to start a conversation about the importance of pollinators, which are crucial to maintaining our food supply.

• Audubon Zoo celebrated new births throughout the year, including a colobus monkey, a critically-endangered black-and-white ruffed lemur, a Barasingha deer fawn, and a flamingo chick that hatched on the 4**^ of July. Across the river at Freeport-McMoRan Audubon Species Survival Center, three critically-endangered Mississippi sandhill crane chicks hatched in May.

• And, the Zoo welcomed some new members of the Audubon family from other conservation organizations. Okpara, a male silverback Western lowland gorilla, came to us from Zoo New England's Franklin Park Zoo in Boston and Tumani, a female Western lowland gorilla, joined the Audubon troop from the Cheyenne Mountain Zoo. A pair of female and male Brazilian ocelots (a wild cat species about twice the size of the average domestic feline known for their striking, dappled coat) named Milagre and Joaquin moved into a new exhibit in Audubon Zoo's Jaguar Jungle from Dallas Zoo. Jaguar Jungle also added a new resident to match its name-a male jaguar named Valerio that was born at San Diego Zoo.

• A young endangered sea otter enjoyed a warm New Orleans welcome in March at Audubon Aquarium of the Americas. Ruby was just a day old when she was found abandoned off the coast of Monterey, California. After nursing her back to health, Monterey Bay Aquarium experts determined she wouldn't survive if released back into the wild, so Audubon was fortunate enough to bring her into our sea otter program. Ruby quickly fit right in and is a favorite with staff and guests, teaching visitors about the fragile nature of the Pacific coast eco-system.

• Audubon Butterfly Garden and Insectarium debuted a small collection of tarantula hawks, a beautiful insect that is the largest member of the spider wasp family Pompilidae, a family of thousands of species that prey only on spiders.

11 AUDUBON COMMISSION

Management's Discussion and Analysis

Economic Factors and Next Year's Budget The 2018 operating budget is substantially comparable to the 2017 operating budget, which reflects management's intent and expectations that operations will remain consistent.

Contacting the Commission This financial report is designed to provide our citizens, customers, and creditors with a general overview of the Commission's finances. If you have any questions about this report or need additional financial information, please contact the President of the Commission, 6500 Magazine Street, New Orleans, LA 70118.

12 AUDUBON COMMISSION Statements of Net Position December 31, 2017 and 2016

2017 2016 Assets and Deferred Outflows of Resources Current Assets Cash and Cash Equivalents $ 459,391 $ 1,484,928 Accounts Receivable, Net of Allowance for Uncollectible Accounts of $35,986 in 2017 and $13,196 in 2016 444,110 307,544 Inventory 1,319,527 1,417,749 Prepaid Expenses 724,942 561,419

Total Current Assets 2,947,970 3,771,640

Noncurrent Assets Capital Assets Land 800,000 800,000 Buildings and Fixed Exhibltory 268,964,702 256,986,856 Equipment 22,552,190 21,199,734 Construction In Progress 18,158,095 19,334,433 Less: Accumulated Depreciation (159,200,858) (149,171,093)

Net Capital Assets 151,274,129 149,149,930

Other Assets Prepaid Rent - Dock Board 7,989,458 8,105,247 Cash and Cash Equivalents Restricted for Capital Projects 3,694,330 1,634,419 Receivables Restricted for Capital Improvements 499,681 2,662,230 Total Other Assets 12,183,469 12,401,896

Total Assets 166,405,568 165,323,466

Deferred Outflows of Resources 75,833 176,944

Total Assets and Deferred Outflows of Resources $ 166,481,401 $ 165,500,410

The accompanying notes are an integral part of these financial statements. 13 AUDUBON COMMISSION Statements of Net Position (Continued) December 31, 2017 and 2016

2017 2016 Current Liabilities Payable from Unrestricted Assets Accounts Payable and Other Accrued Liabilities $ 6,671,060 $ 5,691,189 Capital Lease Obligations 104,398 152,787

Total Current Liabilities Payable from Unrestricted Assets 6,775,458 5,843,976

Current Liabilities Payable from Restricted Assets Accrued interest 587,614 628,831 Limited Tax Bonds, Current Portion 3,185,000 3,025,000 Gulf Opportunity Zone Loan, Current Portion 1,468,985 1,403,844 Construction Payables 1,327,634 3,411,125

Total Current Liabilities Payable from Restricted Assets 6,569,233 8,468,800

Total Current Liabilities 13,344,691 14,312,776

Noncurrent Liabilities Limited Tax Bonds 11,266,957 14,681,812 Gulf Opportunity Zone Loan 12,379,143 13,848,128 Due to Audubon Nature Institute, Inc. 2,616,122 4,037,885 Capital Lease Obligations 104,398

Total Noncurrent Liabilities 26,262,222 32,672,223

Total Liabilities 39,606,913 46,984,999

Net Position Net investment in Capital Assets 125,224,244 116,367,601 Unrestricted 1,650,244 2,147,810

Total Net Position 126,874,488 118,515,411

Total Liabilities and Net Position $ 166.481.401 $ 165.500.410

The accompanying notes are an integral part of these financial statements. 14 AUDUBON COMMISSION Statements of Revenues, Expenses, and Changes in Net Position For the Years Ended December 31, 2017 and 2016

2017 2016 Operating Revenues Charges for Services $ 41,275,966 $ 41,817,868 Other Revenues 1,246,415 1,531,184

Total Operating Revenues 42,522,381 43,349,052

Operating Expenses Salaries and Benefits 27,182,388 27,067,868 Contractual Services, Materials, Supplies, and Other 22,533,759 23,182,344 Depreciation and Amortization 10,185,346 9,840,967

Total Operating Expenses 59,901,493 60,091,179

Operating Loss (17,379,112) (16,742,127)

Nonoperating Revenues (Expenses) Support for Capital Projects, Education, and Operating 8,333,117 7,211,962 Support from Audubon Nature Institute, Inc. Dedicated Tax Revenues 11,319,256 10,919,256 Intergovernmental Grants 4,378,366 9,787,980 Contributions to Facilities Managed by Audubon Nature Institute, Inc. 367,858 768,285 Other Revenue 2,684,213 2,364,486 Interest Expense (1,330,114) (1,568,245) Amortization - Debt Costs (14,507) (14,507)

Total Nonoperating Revenues, Net 25,738,189 29,469,217

Change in Net Position 8,359,077 12,727,090

Net Position, Beginning of Year 118,515,411 105,788,321

Net Position, End of Year $ 126,874,488 $ 118,515,411

The accompanying notes are an integral part of these financial statements. 15 AUDUBON COMMISSION Statements of Cash Flows For the Years Ended December 31, 2017 and 2016

2017 2016 Cash Flows from Operating Activities Cash Received from Customers $ 42,385,816 $ 43,385,506 Cash Paid to or on Behalf of Employees (27,107,243) (27,011,308) Cash Paid for Supplies and Services (23,231,888) (25,481,462)

Net Cash Used in Operating Activities (7,953,315) (9,107,264) Cash Flows from Capital and Related Financing Activities Support From Audubon Nature Institute, Inc. 8,333,117 7,211,962 Payments for Design, Construction, and Equipment Purchases (14,277,247) (14,370,412) Decrease/(lncrease) in Restricted Assets 102,638 (841,138) Decrease in Liabilities Payable from Restricted Assets (229,855) (229,855) Dedicated Tax Revenues 11,319,256 10,919,256 Interest Paid (1,270,220) (1,507,949) Payment of Bond Principal (4,428,844) (4,586,593) Payment of Capital Lease Obligations (152,787) (343,503) Contributions to Facilities Managed by Audubon Nature Institute, Inc. 367,858 768,285 Intergovernmental and Other Grants 4,378,366 9,787,980 Contractual Debt Reduction 2,111,535 2,111,535 Cash Received from Insurance Proceeds 572,678 252,950 Other 101,283 101,278

Net Cash Provided by Capital and Related Financing Activities 6,927,778 9,273,796 Net (Decrease) Increase in Cash and Cash Equivalents (1,025,537) 166,532 Cash and Cash Equivalents, Beginning of Year 1,484,928 1,318,396 Cash and Cash Equivalents, End of Year $ 459.391 $ 1.484.928

Reconciliation of Operating Loss to Net Cash Used in Operating Activities Operating Loss $ (17,379,112) $ (16,742,127) Adjustments to Reconcile Operating Loss to Net Cash Used in Operating Activities Depreciation and Amortization 10,185,346 9,840,967 (Increase) Decrease in Accounts Receivable and Other Current Assets (317,654) 27,338 Decrease in Accounts Payable and Other Current Liabilities (441,895) (2,233,442)

Net Cash Used in Operating Activities $ (7.953.3151 $ (9,107,2641

Non-Cash Items Purchases for Design, Construction, and Equipment in Accounts Payable and Other Current Liabilities $ 1,327,634 $ 3,411,125

The accompanying notes are an integral part of these financial statements. 16 AUDUBON COMMISSION

Notes to Financial Statements

Note 1. Organization

General Information Audubon Park is located on a 400-acre tract within the City of New Orleans (the City) that includes the Audubon Zoo, trails for jogging, biking, and horseback riding, an 18- hole golf course and numerous athletic fields. Act 83 passed by the Louisiana Legislature (the Legislature) in 1871 authorized the Board of Park Commissioners to acquire the land which is now known as Audubon Park. In 1914, the Legislature passed Act 191 which created a Commission to be entrusted with the management and control of Audubon Park. Act 191, as amended, is the current authority for the present Audubon Park Commission which is composed of 24 members who are appointed by the Mayor of the City with the approval of the City Council. Each member serves a six-year term, with four members' terms expiring each year. On January 1, 1996, the Commission's name was changed from Audubon Park Commission to Audubon Commission (the Commission) effective with the City's adoption of amendments to its Home Rule Charter.

On November 4, 1986, City voters approved the levy of a three and four-fifths (3-4/5) mills property tax to finance the construction and certain operating expenses of the Audubon Aquarium of the Americas (the Aquarium). The vote was taken pursuant to Act 309, passed by the Legislature earlier in 1986, which provided that the Commission would develop, construct and operate the Aquarium, and authorized the City to levy and collect the aforementioned ad valorem tax, subject to voter approval, on behalf of the Commission. The City acts through the Commission in the issuance of bonds authorized by Act 309, and through the Board of Liquidation, City Debt, in the sale of its bonds. Construction of the Aquarium of the Americas and Woldenberg Riverfront Park was begun in 1987 and the bonds (Audubon Park Commission Aquarium Bonds, Series 1988 - $25,000,000) were issued in 1988. Construction was completed and the Aquarium was opened to the public in September 1990. Phase II of the Aquarium was completed in 1995.

On June 1, 1990, the Commission and the City entered into an agreement to lease approximately 128 acres of City-owned property as part of construction and operation of a Wilderness Park, Species Survival Center and Research Center. The agreement, which terminates on February 28, 2040, requires an annual payment to the City's General Fund of one dollar ($1.00) per year for a period of fifty (50) years, payable in a lump sum on June 1, 1990. Adjacent to the City property is 986 acres of United States Coast Guard (Coast Guard) property for which the Coast Guard granted the Commission a 25-year land use license on June 1, 1990. A 25 year renewal option was executed on July 1, 2010, and started on June 1, 2015; the renewal ends on May 31, 2040 with an option for renewal for 25 years thereafter. Together, these sites comprise Freeport- McMoRan Audubon Species Survival Center and Wilderness Park. This site houses the Alliance for Sustainable Wildlife, a partnership with the San Diego Zoo, to devise strategies to ensure sustainable populations of unique and endangered zoo animals. Improvements completed by the Commission include Audubon Center for Research of Endangered Species (a 36,000 square foot scientific research facility); Audubon Aquatics Center (houses aquatic wildlife rehabilitation and aquarium husbandry operations); Freeport-McMoRan Audubon Species Survival Center (large- scale animal enclosures and barns in forested settings); and Audubon Wilderness Park (education space, restrooms, trails, and picnic shelters). 17 AUDUBON COMMISSION

Notes to Financial Statements

Note 1. Organization (Continued)

General Information (Continued) Effective October 1, 1994, the Commission received assignment of a facility lease by the Society for Environmental Education (as lessee) with the City (as lessor). The Society for Environmental Education operates as the Audubon Louisiana Nature Center.

The Audubon Butterfly Garden and Insectarium opened in the summer of 2008 and is located in the Custom House building in New Orleans.

Audubon Nature Institute, Inc. (the Institute) is a nonprofit organization incorporated October 31, 1975, exclusively for educational purposes, including for such purposes, the making of distributions to organizations that qualify as exempt organizations under section 501(c)(3) of the Internal Revenue Code. Pursuant to a Management and Cooperative Endeavor Agreement (Agreement) between the Institute and the Commission, the Institute operates and manages the Audubon Facilities, as defined below, for the benefit of the Audubon Commission (Commission), an independent agency of the City of New Crieans.

As described above, the Commission owns, controls, and manages various facilities in the State of Louisiana in fulfillment of its goals, purposes, and objectives, including, but not limited to Audubon Park, the Audubon Zoo, the Aquarium of the Americas, Woldenberg Riverfront Park, the Entergy Giant Screen Theater, the Freeport-McMoRan Audubon Species Survival Center, the Alliance for Sustainable Wildlife, the Audubon Center for Research of Endangered Species, the Audubon Louisiana Nature Center, Audubon Wilderness Park, and the Audubon Butterfly Garden and Insectarium, collectively the Audubon Facilities as referred to above.

Per the Agreement, the Commission shall pay for the cost and operation of the Audubon Facilities, with the Commission reimbursing the Institute for all expenses that it incurs on behalf of the Commission in furtherance of the Agreement.

The Institute employs individuals to operate and maintain the Commission's facilities; however, all operating revenues and expenses, including salary and employee benefits expenses, related to these facilities are recorded in the records of the related facility within the Commission's financial statements.

For its services, the Institute shall earn a management fee of $50,000, annually, adjusted in accordance with the Consumer Price Index (CPI) as compared to the CPI for January 1 of the prior year. The Agreement currently has a term of fifteen years which terminates in 2028 unless extended by both parties. Management fee expenses totaling $51,904 in 2017 and $50,576 in 2016 are included in the statements of revenues, expenses, and changes in net position.

The Institute obtains donations, gifts and grants, and conducts fundraising activities in furtherance of its exempt purpose. The revenues and net assets reflected in the Institute's financial statements are the result of these activities. Specific grants to the Commission consist of donations received and grants obtained by the Institute for operating support and capital improvements of the Audubon Facilities discussed above. 18 AUDUBON COMMISSION

Notes to Financial Statements

Note 1. Organization (Continued)

Environmental Risks The Commission is insured for natural disasters and has property damage insurance and business interruption insurance limits of approximately $75,000,000 for all Audubon Facilities.

Note 2. Summary of Significant Accounting Policies

Basis of Presentation - Fund Accounting The proprietary fund is used to account for the Commission's ongoing operations and activities which are similar to those in the private sector. Proprietary funds are accounted for using a flow of economic resource measurement focus under which assets and liabilities associated with the operation of these funds are included in the statements of net position. The statements of revenues, expenses and changes in net position present increases (revenues) and decreases (expenses) in net position. The Commission maintains one proprietary fund type - the enterprise fund.

Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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.

Basis of Reporting In accordance with GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as amended, net position is classified into three components - net investment in capital assets, restricted, and unrestricted. These classifications are defined as follows:

Net Investment in Capital Assets - This component of net position consists of capital position, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction or improvement of those assets plus deferred outflows of resources less deferred inflows of resources related to those assets.

Restricted - This component of net position consists of constraints placed on net position use through external constraints imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation.

Unrestricted - This component of net position consists of net position that do not meet the definition of "restricted" or "net investment in capital assets".

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Notes to Financial Statements

Note 2. Summary of Significant Accounting Policies (Continued)

Restricted Assets Restricted assets consist primarily of investments maintained in the applicable enterprise fund in accordance with bond indentures. This category is also used to report amounts receivable from public agencies in connection with the funding of capital projects.

Inventory Inventory is stated at the lower of cost, determined by the average cost method, or market.

Capital Assets Capital assets greater than $10,000 and a useful life of over one year are recorded at historical cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives (ranging from 20 to 40 years for buildings and fixed exhibitory, and 3 to 20 years for equipment) of the assets. Equipment under capital leases is amortized using the straight-line method over the shorter of the lease term or its useful life. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in revenue or expense for the period. The cost of maintenance and repairs is charged to operations as incurred and significant renewals and betterments are capitalized.

The Commission reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset might not be recoverable through future utilization. An impairment change is recognized when the fair value of an asset is less than its carrying value.

Cash and Cash Equivalents The enterprise fund considers all short-term and highly liquid investments with an original maturity of ninety days or less to be cash equivalents. Cash and cash equivalents at December 31, 2017 and 2016, consisted of unrestricted cash and money market accounts of $459,391 and $1,484,928, respectively.

Budgeting Operating and capital expenditure budgets are presented to the Commission by the Institute and are prepared on a basis consistent with accounting principles generally accepted in the United States. Budget information is utilized for analytical purposes, and the budget process is a key component of the Commission's management control environment.

Reclassification Certain amounts in the prior year financial statements have been reclassified in order to be comparable with current year presentation.

20 AUDUBON COMMISSION

Notes to Financial Statements

Note 2. Summary of Significant Accounting Policies (Continued)

Adoption of New Accounting Principles For the year ended December 31, 2017, the following was implemented:

Governmental Accounting Standards Board Statement No. 77 (GASB 17) The objective of GASB Statement No. 77, Tax Abatement Disclosures, is to improve financial reporting by providing financial statement users with essential information about the nature and magnitude of the reduction in tax revenues through abatement programs. As a result of implementation of this statement, additional disclosures related to tax abatements is included in Note 10.

Note 3. Cash and Cash Equivalents

Cash on Deposit The Commission's deposits at financial institutions at December 31, 2017 and 2016, were $310,471 and $1,336,208, respectively, (excluding $148,920 and $148,720 of cash on hand at December 31, 2017 and 2016, respectively).

Custodial credit risk is the risk that in the event of a bank failure, the Commission's deposits may not be returned. The Commission periodically maintains cash in bank accounts in excess of insured limits. The Federal Deposit Insurance Corporation (FDIC) secures accounts in insured institutions up to $250,000 per depositor. As of December 31, 2017, the Commission had $3,491,144 of deposits in excess of the FDIC insured limit which were secured from risk by $5,382,408 of pledged securities held by the custodial bank in the name of the Commission and fiscal agent bank which serves to mitigate the custodial credit risk of the Commission's deposits. As of December 31, 2017 and 2016, no funds were exposed to custodial credit risk.

Restricted Cash and Cash Equivalents The carrying and market values of the Commission's cash and cash equivalents as of December 31, 2017 and 2016 were $3,694,330 and $1,634,419, respectively. At December 31, 2017 and 2016 the total was comprised of cash. These assets are presented as Cash and Cash Equivalents Restricted for Capital Projects.

Per GASB authoritative guidance, unless there is information to the contrary, obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality.

Interest Rate Risk It is not the Commission's policy to limit investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

21 AUDUBON COMMISSION

Notes to Financial Statements

Note 4. Other Assets

Prepaid Rent - Dock Board On April 30, 1992, the Commission, the City and the Board of Commissioners of the Port of New Orleans (the Port) entered into an agreement titled "Riverfront Economic Development Agreement" (the Riverfront Agreement). The Riverfront Agreement included a provision for paying the Port $11,000,000, which the Commission funded through its Aquarium Revenue Bonds, Series 1992 A.

The $11,000,000 payment relieves the Commission of all rents and fees associated with the development and occupancy of the Aquarium and its related facilities for the 99 year term of the Riverfront Agreement. This payment is presented as prepaid rent - dock board on the statements of financial position and is being amortized on a straight-line basis over the term of the Riverfront Agreement.

Note 5. Capital Assets

Capital assets are summarized as follows by major classification at December 31, 2017:

Balance Balance JanuatY 1, Additions/ Disposals/ December 31, 2017 Increases Transfers Retirements 2017 Capital Assets Not Depreciated Land $ 800,000 $ $ - $ - $ 800,000 Construction in Progress 19,334,433 11,609,191 (12,785,529) 18,158,095

Total Capital Assets Not Depreciated 20,134,433 11,609,191 (12,785,529) 18,958,095

Capital Assets Being Depreciated Buildings and Fixed Exhibitory 256,986,856 11,977,846 268,964,702 Equipment 21,199,734 620,762 807,683 (75,989) 22,552,190

Total Capital Assets Being Depreciated 278,186,590 620,762 12,785,529 (75,989) 291,516,892

Less Accumulated Depreciation (149,171,093) (10,060,756) 30,991 (159,200,858)

Total Capital Assets, Net 8 149149 930 8 2169197 $ - $ /44 9981 8 151 274129

22 AUDUBON COMMISSION

Notes to Financial Statements

Note 5. Capital Assets (Continued)

Capital assets are summarized as follows by major classification at December 31, 2016:

Balance Balance January 1, Additions/ Disposals/ December 31, 2016 Increases Transfers Retirements 2018 Capital Assets Not Depreciated Land $ 800,000 $ $ $ $ 800,000 Construction in Progress 12,056,508 15,117,879 (7,784,810) (55,144) 19,334,433 Total Capital Assets Not Depreciated 12,856,508 15,117,879 (7,784,810) (55,144) 20,134,433

Capital Assets Being Depreciated Buildings and Fixed Exhibitory 249,315,477 40,728 7,630,651 256,986,856 Equipment 21,102,275 978,708 154,159 (1,035,408) 21,199,734

Total Capital Assets Being Depreciated 270,417,752 1,019,436 7,784,810 (1,035,408) 278,186,590

Less Accumulated Depredation (140,203,413) (9,716,675) 748,995 (149,171,093)

Total Capital Assets, Net $ 143,070,847 $ 6,420,640 $ $ (341,557) $ 149,149,930

Depreciation expense for the years ended December 31, 2017 and 2016, related to these assets amounted to approximately $10,061,000 and $9,717,000, respectively.

Note 6. Long-Term Debt

Bonds and other debt payable at December 31, 2017 and 2016, are comprised of the following:

2017 2016 Limited Tax Bonds Audubon Commission Aquarium Bonds Series 2011 A-l due in annual installments of $3,185,000 to $3,630,000 from October2017through October2021; 3.276% $ 13,590,000 $ 16,615,000 Other Debt State of Louisiana, Office of Community Development Gulf Opportunity Zone Act Loan 13,848,128 15,251,972

Total Bonds Payable and Other Debt 27,438,128 31,866,972 Unamortized Premium, Net 861,957 1,091,812

Total 28,300,085 32,958,784

Less: Current Maturities (4,653,985) (4,428,844)

Bonds Payable and Other Debt, Noncurrent $ 23,646,100 $ 28,529,940

23 AUDUBON COMMISSION

Notes to Financial Statements

Note 6. Long-Term Debt (Continued)

Details of the bonds and loans payable are as follows:

Limited Tax Bonds - Series 2011 A-1 and 2011 A-2 On September 22, 2011, the Commission issued $24,370,000 Aquarium Refunding Bonds Series 2011 A-1 with a net interest cost of 3.276%. The bonds were issued for the purpose of defeasing the Aquarium Refunding Bonds, Series 2001 A and Series 2001 B Bonds and providing amounts for capital improvements to the Aquarium and related facilities and paying costs of issuance of the bonds. On the same date the Commission issued $630,000 Aquarium Refunding Bonds, Taxable Series 2011 A-2 with a net interest rate of 1.867%.

Gulf Opportunity Zone Act Loan In July 2006, pursuant to the Public Law 109-135 of the United States Congress, the Gulf Opportunity Zone Act of 2005 was enacted to provide tax relief and tax credit bond authority designed to aid the State with recovery efforts from Hurricane Katrina and Hurricane Rita. Accordingly, the State of Louisiana, Office of Community Development loaned the Commission $4,907,500 to make the scheduled debt payments for the Aquarium Revenue Refunding Bonds, Series 1997 and $11,851,006 to make scheduled debt payments for the Improvement and Refunding Zoo Bonds, Series 1997, Aquarium Refunding Bonds, Series 2001 A, Aquarium Bonds, Series 2001 B, and Aquarium Refunding Bonds, Series 2003 A through 2009.

Per the agreement the funds were maintained at the State identified trustee and disbursed according to the debt schedule. Cnce funds were disbursed by the State, the debt service payments were made with the proceeds and amounts recorded as loans payable by the Commission. No principal or interest was payable during the initial five year period of the loan. An extension was requested in 2011 to defer the payment of principal and interest for an additional five years, but was denied. In 2015, the loan was reamortized as part of a cooperative endeavor agreement explained below. As part of the reamortization of the loan which matures November 1, 2025, $1,223,438 of accrued interest on the loan was reclassified as principal for a total of $16,593,565 which bears interest at 4.64%.

Cn Cctober 1, 2015, the Commission and the State entered into a cooperative endeavor agreement (CEA) whereby the Commission agreed to invest in the Woldenberg Riverside Park (the Park) an amount of not less than $1 million per year for ten years for the purpose of capital improvements, advertising, marketing, maintenance, and food and beverage service to increase the use of the park for annual festivals and other events based on multi-year contracts for such events.

24 AUDUBON COMMISSION

Notes to Financial Statements

Note 6. Long-Term Debt (Continued)

Gulf Opportunity Zone Act Loan (Continued) It is anticipated that the investment of funds into the Park would increase tax revenues annually for the State. Each July 1st, the Commission shall submit a report to the Louisiana Division of Administration that demonstrates that the number of visitors to events directly associated with the Park is consistent with 800,000 visitors (820,000 for each succeeding year) and average spending of $700 per visitor. In addition, the Commission shall identify long-term contracts related to the festivals directly associated with the Park and the revenues expected to be generated by these festivals for the State and the infrastructure that was undertaken by the Commission in the prior years. If the Commission meets the criteria of spending a minimum of $1 million on the Park, as well as the threshold of visitors and visitor spending, the State will accept the stream of net new Park tax revenues as payment for the annual amounts owed per the reamortized loan. If the visitor criteria are not met, the Commission will pay any insufficiency to the State, calculated using a ratio set forth in the CEA, by August 15**^ of that same year. If the minimum $1 million spending criteria is not met, the Commission shall pay an additional proportionate amount of the loans to the State based on the insufficiency. If greater than $1 million is spent, the excess may be carried forward for use in any future year toward the spending requirement. The term of this contract terminates on July 15, 2026.

The Commission's total expenditures associated with Woldenberg Riverfront Park for the period July 1, 2016 to June 30, 2017 was $1,367,629. The park hosted 855,651 visitors during this time period with each visitor spending an estimated $709. Based on these factors, the Commission met the criteria established by the CEA for the period July 1,2016 to June 30, 2017.

As noted above, if the expenditures associated with Woldenberg Riverfront Park are in excess of $1,000,000 in any year, the excess may be carried forward for use in any future year toward the required $1,000,000 yearly expenditure.

The expenditure and carryover balance as of December 31, 2017 is the following:

Balance January 1, 2017 $ 323,161 Expenditures from July 1, 2016 through June 30, 2017 1,367,629

Total Expenditures 1,690,790 CEA Annual Requirement 1,000,000 Carryover to Next Fiscal Year $ 690,790

The Commission reduced its gulf opportunity zone loan balance by the principal and interest amount due in 2017 per the CEA, in the amount of $2,111,535. This amount is recorded in other revenue on the statement of revenues, expenses, and changes in net position.

25 AUDUBON COMMISSION

Notes to Financial Statements

Note 6. Long-Term Debt (Continued)

A summary of changes in bonds payable and other debt during 2017 and 2016, is as follows:

Limited Gulf Tax Opportunity Bonds Zone Loan Total Balance January 1, 2017 $ 16,615,000 $ 15,251,972 :$ 31,866,972 Additions Reductions (3,025,000) (1,403,844) (4,428,844)

Balance DecemberSi, 2017 $ 13.590.000 $ 13.848.128 :$ 27.438.128

Due within One Year $ 3.185.000 $ 1.468.985 :$ 4.653.985

Limited Guif Tax Opportunity Bonds Zone Loan Totai Balance January 1, 2016 $ 19,860,000 $ 16,593,565 1S 36,453,565 Additions Reductions (3,245,000) (1,341,593) (4,586,593)

Balance December 31, 2016 $ 16,615,000 $ 15,251,972 1S 31,866,972

Due within One Year $ 3,025,000 $ 1,403,844 1S 4,428,844

Expected debt service requirements on all debt outstanding as of December 31, 2017, are as follows:

Year Ending Limited Tax Bonds Guif Opportunity Zone Loan Totai December 31, Principai interest Principai interest Principai interest 2018 3,185,000 647,650 1,468,985 642,553 4,653,985 1,290,203 2019 3,305,000 520,250 1,537,143 574,392 4,842,143 1,094,642 2020 3,470,000 355,000 1,608,466 503,069 5,078,466 858,069 2021 3,630,000 181,500 1,683,099 428,436 5,313,099 609,936 2022 1,761,195 350,340 1,761,195 350,340 2023 to 2025 5,789,240 545,361 5,789,240 545,361

Totai $ 13,590,000 $ 1,704,400 $ 13,848,128 $ 3,044,151 $ 27,438,128 $ 4,748,551

26 AUDUBON COMMISSION

Notes to Financial Statements

Note 7. Transactions with Audubon Nature Institute and Audubon Nature Institute Foundation

As mentioned in Note 1, the Institute operates and manages the Audubon Facilities for the benefit of the Commission as evidenced by an Agreement. The Agreement provides that all monies from the operation of the Audubon Facilities, and all tax revenues, shall be collected by the Institute on behalf of the Commission and deposited in an account maintained and administered by the Commission; however, the Commission shall pay for the cost and operation of the Audubon Facilities as detailed annually in a budget submitted to the Commission. The Commission is to also reimburse the Institute for all expenses that it incurs on behalf of the Commission in furtherance of the Agreement, as well as pay the Institute an annual management fee.

At December 31, 2017 and 2016, the Institute has incurred expenses on behalf of the Commission in amounts exceeding the reimbursements received from the Commission for those expenses. At December 31, 2017 and 2016, the amount due to the Institute from the Commission totaled $2,616,122 and $4,037,885, respectively.

The Institute has committed that it has the intent and ability to continue funding the operations of the Commission through operating advances, donations, and grants, if necessary, in order to provide the required level of financial support to enable the Commission to discharge its liabilities in the normal course of business as they become due.

The Institute has provided support to the Commission to fund certain capital projects, education programs and operational support. For the years ended December 31, 2017 and 2016, those amounts totaled $8,333,117 and $7,211,962, respectively.

Audubon Nature Institute Foundation (Foundation) is a nonprofit organization that raises funds in support of the facilities, programs, and other activities managed by the Institute. During the years ended December 31, 2017 and 2016, the Foundation donated funds for the direct benefit of the facilities managed by the Institute. These contributions totaled approximately $368,000 and $768,000 for 2017 and 2016, respectively.

Note 8. Commitments and Contingencies

Long-Term Leases The Commission leases its Audubon Butterfly Garden and Insectarium premises under an operating lease. A three year step rent plan was introduced in August 2009. The rent will be reset to market every five years, beginning August 2014, instead of 10 years as stated in the lease. The Commission also leases two additional properties in Jefferson and Orleans Parishes. Rent expense for the years ending December 31, 2017 and 2016 totaled $727,775 and $675,414, respectively.

27 AUDUBON COMMISSION

Notes to Financial Statements

Note 8. Commitments and Contingencies (Continued)

Future lease payments required under the operating leases are as follows:

Years Ending Lease December 31, Payments 2018 $ 668,118 2019 647,328 2020 103,530 2021 69,786 2022 53,673 Total $ 1,542,435

As of December 31, 2017, the Commission was obligated under capital leases, each with non-cancelable terms in excess of one year. The assets under capital lease as of December 31, 2017 had a cost of $584,239 and accumulated amortization of $491,322.

Future minimum lease payments under the capital leases are as follows:

Year Ending Lease December 31, Payments 2018 $ 106,243

Total Minimum Lease Payments 106,243

Less: Amounts Representing Interest 1,845

Present Value of Future Minimum Lease Payments 104,398

Less: Current Portion of Capital Leases Obligation 104,398

Capital Lease Obligations, Excluding Current Portion $

Construction in Progress As of December 31, 2017 the Commission has approximately $1,214,029 remaining on construction projects still ongoing.

Contractual Debt Reduction As disclosed in Note 6 in the Gulf Opportunity Zone Act Loan section, the Commission recognizes revenue under the CEA wherein the liability is canceled after meeting certain requirements. The Commission asserts all necessary components for revenue recognition are met, and recognized the liability reduction in the current year. While the Commission has fulfilled obligations under the CEA to substantiate revenue recognition and liability reduction, acknowledgement by the State of Louisiana is pending.

28 AUDUBON COMMISSION

Notes to Financial Statements

Note 9. Litigation

Certain claims and suits have been filed against the Commission. The majority of these claims are covered by insurance and, based on all available information and consultation with the Commission's legal counsel; management does not believe the ultimate resolution of these matters will have a significant effect on the Commission's financial position, results of operations, or cash flows.

Note 10. Tax Abatements

The City of New Orleans maintains a Restoration Tax Abatement Program that provides commercial property owners and homeowners who expand, restore, or develop an existing structure in a downtown development district, economic development district, or historic district the right to pay ad valorem taxes based on the assessed valuation of the property for the year prior to the commencement of the project for five years after completion of the work. During the fiscal year ended December 31, 2017, there were twenty tax abatements under the Restoration Tax Abatement Program with exemptions. During the fiscal year ended December 31, 2017, ad valorem taxes abated applicable to the Commission totaled $19,367.

Note 11. Subsequent Events

Management has evaluated subsequent events through the date that the financial statements were available to be issued June 4, 2018, and determined that the following events occurred that required disclosure.

Audubon Commission entered into three Cooperative Endeavor Agreements (CEA) with the City of New Orleans related to the development of public green space on the Governor Nicholls and Esplanade wharves and to a pedestrian access bridge adjacent to Audubon Aquarium of the Americas that facilitates entry to a new ferry terminal building. The projects will offer over three miles of continuous public access to the Mississippi River, revitalizing New Orleans' downtown riverfront.

On February 6, 2018, the City of New Orleans and Audubon Commission entered into a CEA allowing the Commission to redevelop the Governor Nicholls and Esplanade Wharves into a public park and recreational facilities. Upon completing construction, the Commission will operate and assume responsibility for the property. The CEA's term runs from February 6, 2018 to October 23, 2086. Schematic design must be presented to the City and public for review no later than August 6, 2019. The minimal value of initial improvements is $15 million. The first payment of Audubon Equity of $10 million was made in three deposits in March and April 2018 to fund an escrow account; the remaining payment of $5 million is due February 6, 2019.

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Notes to Financial Statements

Note 11. Subsequent Events (Continued)

The Commission is obligated to honor terms of two leases between the Port of New Orleans and TCI Packaging, LLC that expire February 6, 2020. The termination date can be negotiated to end earlier. Construction of the new park and recreational facilities must begin two years after the agreed upon termination date. In addition, the Commission is responsible for maintaining a U.S. Coast Guard Vessel Tracking System Watch Tower in its existing location and for maintaining an appropriate warning system and devices connected to the U.S. Coast Guard's Riverfront Alert Network.

To raise initial improvement funds, Audubon Commission entered into a separate CEA with the Ernest M. Morial New Orleans Exhibition Hall Authority and the New Orleans Convention and Visitors Bureau on November 22, 2017. The parties agreed that the Exhibition Hall Authority will provide $9 million total investment, the CVB will provide $2 million, and the Commission will provide or raise $4 million. This CEA is considered a subsequent event because although it was signed in 2017, it was not activated until Governor Nicholls and Esplanade Wharves was signed on February 6, 2018. The parties also entered into an escrow agreement with IBERIABANK to serve as escrow agent. The first payment was completed April 17, 2018.

On February 22, 2018, the Commission entered into an agreement with the City of New Orleans and the Regional Transit Authority (RTA) to construct a pedestrian access bridge on Audubon property adjacent to Audubon Aquarium of the Americas. The bridge across railroad tracks replaces an existing structure planned for demolition as part of the development of a new ferry terminal at the foot of Canal Street.

The Commission assumes responsibility for design direction, bidding and construction of the bridge, which must be completed by April 20, 2019. Upon completion, the Commission will enter into a sixty-year Use Agreement with RTA, providing RTA with the right to operate the bridge on Audubon property. The City and RTA will provide design and construction funds not to exceed $7.3 million.

The Commission, City of New Orleans and RTA entered into an escrow agreement with IBERIABANK as escrow agent. The City's payment of $5.9 million, per the agreement, was received April 16, 2018. The RTA's portion totaled $1.4 million, which consists of $55,886 previously paid in architectural fees for the conceptual design, and $1,344,114 paid to the escrow account on April 24, 2018.

On March 16, 2018, Audubon Commission and the French Market Corporation entered into a CEA outlining terms of a change order to improvements of the Moonwalk, currently under construction. The change order will provide for better connectivity between the Moonwalk and the new Governor Nicholls and Esplanade park. The value of the change order is $109,730 and will be funded by the escrow account created for the Governor Nicholls and Esplanade Wharves project.

No further subsequent events occurring after June 4, 2018 have been evaluated for inclusion in these financial statements.

30 UNIFORM GUIDANCE

31 T A T># LaPorte, APAC I -/A r i i fx \ ,C/ ' 11 Veterans Blvd. I Suite 600 CPA» & BUSINESS ADVISORS Metaitic, LA 70005 504.835.5522 I Fax 504.835.5535 LaPorte.com

Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

Independent Auditor's Report

To the Board of Directors of Audubon Commission

Report on Compliance for Each Major Federal Program We have audited Audubon Commission's (the Commission) compliance with the types of compliance requirements described in the 0MB Compliance Supplement that could have a direct and material effect on the Commission's major federal programs for the year ended December 31, 2017. The Commission's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.

Management's Responsibilities Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditor's Responsibilities Our responsibility is to express an opinion on compliance for the Commission's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Commission's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the Commission's compliance.

LOUISIANA - TEXAS An Independcnily Owned Member, RSM US Alliance RSU us AiliAnce itiembsr firms ar«se(»rd(e and independent businesses and Ie9al cnlittes 32 that are responsible for their cwn aasand omissions, and each is separate andindepertdent from ASM US LLP. RSM USLLP is the U.S. member firm of RSU International,a global networkof independent audit, tax, and coissultrng firms. Members of RSM US AlliarKehave accessto RSM International resources throughRSM tfS LLP but ace not member finms of RSM Irscerrsatiortal. Opinion on Each Major Federai Program In our opinion, the Commission complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2017.

Report on Internal Control Over Compliance Management of the Commission is responsible for establishing and maintaining effective internal control over compliance with the types of compliance referred to above. In planning and performing our audit of compliance, we considered the Commission's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charge with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

33 Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the Commission as of and for the year ended December 31, 2017, and have issued our report thereon dated June 4, 2018 which contained an unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the financial statements as a whole.

Under Louisiana Revised Statute 24:513, this report is distributed by the Louisiana Legislative Auditor as a public document.

A Professional Accounting Corporation

Metairie, LA June 4, 2018

34 AUDUBON COMMISSION Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2017

Expenditures Pass-Through Incurred During the Federal Grantor or Pass-Trough CFDA Grantor's Year Ended Grantor and Program Title Number Number December 31, 2017 U.S. Department of Homeland Security Passed through Louisiana Military Department, Office of Homeland Security and Emergency Preparedness

Public Assistance Grant 97.036 FEMA-1603-DR-LA $ 1,076,269

Total 1,076,269

See accompanying note to the schedule of expenditures of federal awards. 35 AUDUBON COMMISSION Note to Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2017

Note 1. Summary of Significant Accounting Policies

Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Commission and is presented on the accrual basis of accounting. Grant revenues are recorded for financial reporting purposes when the Commission has met the qualifications for the respective grants.

Accrued Reimbursement Various reimbursement procedures are used for federal awards received by the Commission. Consequently, timing differences between expenditures and program reimbursements may exist at the beginning and end of the year. Any accrued balances at year-end represent an excess of reimbursable expenditures over reimbursements received.

De Minimis Cost Rate The Commission uses an indirect cost rate which has been established by the Federal Emergency Organization for managing the Public Assistance awards, and has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

36 T A T># LaPorte, APAC I -/A r i i fx \ ,C/ ' 11 Veterans Blvd. I Suite 600 CPA» & BUSINESS ADVISORS Metaitic, LA 70005 504.835.5522 I Fax 504.835.5535 LaPorte.com

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

Independent Auditor's Report

To the Board of Directors of Audubon Commission

We have audited, in accordance v\/ith 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 Audubon Commission (the Commission) which comprise the statement of net position as of and for the year ended December 31, 2017, and the related statements of revenues, expenses, and changes in net position, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated June 4, 2018.

Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Commission's internal control over financial reporting (internal controls) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control. Accordingly, we do not express an opinion on the effectiveness of the Commission'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 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 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. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be maternal weaknesses. However, material weaknesses may exist that have not been identified.

LOUISIANA • TEXAS An Indcpcndcnily Owned Member, RSM US Alliance RSU US AiliAncemember firms ar« seosrale and independent businesses and Ie9al entitles 37 that are responsible for their cwn aasand omissions, and each Is separate andindependent from ASM US LLP. RSM USLLP is the U.S. member firm of RSU Irsternalional. a global networkof independent audit, tax, and consulting firms. Members of RSM US AlliarKehave access to RSM Iniernatlonal resources Ihcough RSM US LLP but acenot member finms of RSM Incerisational. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission's financial statements are free from 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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 results 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.

Under Louisiana Revised Statute 24:513, this report is distributed by the Louisiana Legislative Auditor as a public document.

A Professional Accounting Corporation

Metairie, LA June 4, 2018

38 AUDUBON COMMISSION Schedule of Findings and Questioned Costs For the Year Ended December 31, 2017

Part I • Summary of Auditor's Results

Financial Statements

Type of Auditor's Report Issued on Whether the Financial Statements Audited were Prepared in Accordance with GAAP: Unmodified

Internal Control Over Financial Reporting: • Material Weakness(es) Identified? No • Significant Deficiency(ies) Identified? None Reported

Noncompliance Material to Financial Statements Noted? No

Federal Awards

Internal Control Over Major Programs: • Material Weakness(es) Identified? No • Significant Deficiency(ies) Identified? None Reported

Type of Auditor's Report Issued on Compliance for Major Federal Programs: Unmodified

Any Audit Findings disclosed that are required to be reported in Accordance with Section 2 CFR 200.516(a) No

Identification of Major Programs:

Name of Federal Program or Cluster CFDA Numbers

Public Assistance Grant 97.036

Dollar threshold used to distinguish between Type A and Type B Programs: $750,000

Auditee qualified as low-risk auditee? Yes

Part II - Financial Statement Findings

No matters were reported.

Part III - Findings and Questioned Costs for Federal Awards

No matters were reported.

39 AUDUBON COMMISSION Summary Schedule of Prior Audit Findings For the Year Ended December 31, 2017

The prior year single (or organization-wide) audit disclosed no significant findings, and no significant uncorrected or unresolved findings exist from prior single (or organization-wide) audits.

40 OTHER SUPPLEMENTARY INFORMATION

41 AUDUBON COMMISSION

Combining Schedule of Revenues, Expenses, and Changes in Net Position For the Year Ended December 31, 2017

Aquarium Species Survival and Butterfly Center/ Louisiana Riverfront Garden and Zoo and Research Nature Park Insectarium Audubon Park Center Center Total Operating Revenues Charges for Sen/ices $ 17,494,645 $ 2,861,050 $ 20,907,980 $ 830 $ 11,461 9) 41,275,966 Other Revenues 853,423 11,239 361,580 20,173 1,246,415

Total Operating Revenues 18,348,068 2,872,289 21,269,560 21,003 11,461 42,522,381

Operating Expenses Salaries and Benefits 8,068,635 1,204,315 16,684,203 1,179,460 45,775 27,182,388 Contractual Sen/ices, Materials, Supplies, and Other 7,493,084 1,706,292 12,285,966 952,643 95,774 22,533,759 Depreciation and Amortization 3,529,964 1,289,232 4,550,168 798,651 17,331 10,185,346

Total Operating Expenses 19,091,683 4,199,839 33,520,337 2,930,754 158,880 59,901,493

Operating Loss (743,615) (1,327,550) (12,250,777) (2,909,751) (147,419) (17,379,112)

Nonoperating Revenues (Expenses) Support from Audubon Nature Institute, Inc. 286,140 41,973 3,945,265 3,864,389 195,350 8,333,117 Dedicated Tax Revenues 9,824,880 400,000 1,094,376 11,319,256 Intergovernmental Grants 280,318 3,382,200 196,238 519,610 4,378,366 Contributions to Facilities Managed by Audubon Nature Institute, Inc. 269,452 98,406 367,858 Other Revenue 2,111,535 572,678 2,684,213 Interest Expense (1,323,122) (6,992) (1,330,114) Amortization - Debt Costs (13,507) (1,000) (14,507)

Total Nonoperating Revenues, Net 11,435,696 441,973 9,084,933 4,060,627 714,960 25,738,189

Change in Net Position 10,692,081 (885,577) (3,165,844) 1,150,876 567,541 8,359,077

Net Position, Beginning of Year 53,121,089 15,102,051 32,820,583 9,688,105 7,783,583 118,515,411

Net Position, End of Year $ 63,813,170 $ 14,216,474 $ 29,654,739 $ 10,838,981 $ 8,351,124 9) 126,874,488

42 AUDUBON COMMISSION Other Supplementary Information Schedule of Compensation, Benefits, and Other Payments For the Year Ended December 31, 2017

Louisiana Revised Statute 24:513(A)(3) as amended by Act 706 of the 2014 Regular Legislative Session requires that the total compensation, reimbursements, and benefits of an agency head or political subdivision head or chief executive officer related to the position, including but not limited to travel, housing, unvouchered expense, per diem, and registration fees to be reported as a supplemental report within the financial statement of local government and quasi-public auditees. In 2015, Act 462 of the 2015 Regular Session of the Louisiana Legislature further amended R.S. 24:513(A)(3) to clarify that nongovernmental entities or not-for-profit entities that received public funds shall report only the use of public funds for the expenditures itemized in the supplemental report.

Agency Head Name: J. Kelly Duncan, President of the Audubon Commission

Purpose Amount Salary $ Benefits $ Other Payments $

43 LaPorte, APAC LAPORTE ] 11 Veterans Blvd. I Suite 600 CPA» & BUSINESS ADVISORS Metaitic, LA 70005 504.835.5522 I Fax 504.835.5535 AGREED-UPON PROCEDURES REPORT LaPorte.com Audubon Commission

Independent Accountant's Report On Applying Agreed-Upon Procedures

For the Period January 1, 2017 - December 31, 2017

Audubon Commission and The Louisiana Legislative Auditor

To the Board of Commissioners of Audubon Commission and the Louisiana Legislative Auditor:

We have performed the procedures enumerated below, which were agreed to by Audubon Commission (Commission) and the Louisiana Legislative Auditor (LLA) on the control and compliance (C/C) areas identified in the LLA's Statewide Agreed-Upon Procedures (SAUPs) for the fiscal period January 1, 2017 through December 31, 2017. The Commission's management is responsible for those C/C areas identified in the SAUPs.

This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and applicable standards of Government Auditing Standards. The sufficiency of these procedures is solely the responsibility of the specified users of this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

The procedures and results are as follows:

Written Policies and Procedures

1. Obtain the entity's written policies and procedures and report whether those written policies and procedures address each of the following financial/business functions (or report that the entity does not have any written policies and procedures), as applicable:

a) Budgeting, including preparing, adopting, monitoring, and amending the budget. b) Purchasing, including (1) how purchases are initiated; (2) how vendors are added to the vendor list; (3) the preparation and approval process of purchase requisitions and purchase orders; (4) controls to ensure compliance with the public bid law; and (5) documentation required to be maintained for all bids and price quotes. c) Disbursements, including processing, reviewing, and approving. d) Receipts, including receiving, recording, and preparing deposits. e) Payroil/Personnel, including (1) payroll processing, and (2) reviewing and approving time and attendance records, including leave and overtime worked.

LOUISIANA • TEXAS An Independently Owned Member, RSM US Alliance RSU US AiliAnceitiembsr firms ar« seosraleand indepenctant businassas and Ie9al andlias that are responsible for (heir cwnaasand omissions, and each Is separate andindependeni from ASM US LLP. RSM USLLP is the U.S. member firm of RSU Irsternaliorsal. a global neiwortiof independent audit, tax, and coissultrng firms. Members of RSM US AlliarKehave accessto RSM Irsiernatlonal resources through RSM tfS LLP but ace not member finms of RSM Itscertsatiortal. f) Contracting, including (1) types of services requiring written contracts, (2) standard terms and conditions, (3) legal review, (4) approval process, and (5) monitoring process. g) Credit Cards (and debit cards, fuel cards, P-Cards, if appiicabie), including (1) how cards are to be controlled, (2) allowable business uses, (3) documentation requirements, (4) required approvers, and (5) monitoring card usage. h) Travel and Expense Reimbursement, including (1) allowable expenses, (2) dollar thresholds by category of expense, (3) documentation requirements, and (4) required approvers. i) Ethics, including (1) the prohibitions as defined in Louisiana Revised Statute 42:1111- 1121, (2) actions to be taken if an ethics violation takes place, (3) system to monitor possible ethics violations, and (4) requirement that all employees, including elected officials, annually attest through signature verification that they have read the entity's ethics policy. Note: Ethics requirements are not applicable to nonprofits. j) Debt Service, including (1) debt issuance approval, (2) EMMA reporting requirements, (3) debt reserve requirements, and (4) debt service requirements.

Results: The policies of the Commission address all of the functions listed.

Board (or Finance Committee, if appiicabie)

2. Obtain and review the board/committee minutes for the fiscal period, and:

a) Report whether the managing board met (with a quorum) at least monthly, or on a frequency in accordance with the board's enabling legislation, charter, or other equivalent document. b) Report whether the minutes referenced or included monthly budget-to-actual comparisons on the General Fund and any additional funds identified as major funds in the entity's prior audit (GAAP-basis). > If the budget-to-actual comparisons show that management was deficit spending during the fiscal period, report whether there is a formal/written plan to eliminate the deficit spending for those entities with a fund balance deficit. If there is a formal/ written plan, report whether the meeting minutes for at least one board meeting during the fiscal period reflect that the board is monitoring the plan. c) Report whether the minutes referenced or included non-budgetary financial information (e.g., approval of contracts and disbursements) for at least one meeting during the fiscal period.

Results: In accordance with the Commission's bylaws, the Commission met on a quarterly basis with the exception of one quarter in which a quorum was not available. The minutes reference budget-to-actual comparisons. The minutes reference approvals of bids, contracts and material purchases. Bank Reconciliations

3. Obtain a listing of client bank accounts from management and management's representation that the listing is complete.

Results: We obtained a listing of bank accounts from management and management's representation that the listing is complete.

4. Using the listing provided by management, select all of the entity's bank accounts (if five accounts or less) or one-third of the bank accounts on a three year rotating basis (if more than five accounts). If there is a change in practitioners, the new practitioner is not bound to follow the rotation established by the previous practitioner. Note: School student activity fund accounts may be excluded from selection if they are otherwise addressed in a separate auditor AUP engagement. For each of the bank accounts selected, obtain bank statements and reconciliations for all months in the fiscal period and report whether: a) Bank reconciliations have been prepared; b) Bank reconciliations include evidence that a member of management or a board member (with no involvement in the transactions associated with the bank account) has reviewed each bank reconciliation; and c) If applicable, management has documentation reflecting that it has researched reconciling items that have been outstanding for more than 6 months as of the end of the fiscal period.

Results: We selected five bank accounts and obtained bank statements and reconciliations. Bank reconciliations included evidence that an independent management review had occurred. We noted that for two out of the five bank accounts tested, management does not have documentation reflecting that it has researched reconciling items that have been outstanding for more than six months as of the end of the fiscal period.

Coiiections

5. Obtain a listing of cash/check/money order (cash) collection locations and management's representation that the listing is complete.

Results: We obtained from management a listing of cash/check/money order (cash) collection locations and management's representation that the listing is complete. 6. Using the listing provided by management, select all of the entity's cash collection locations (if five locations or less) or one-third of the collection locations on a three-year rotating basis (if more than five locations). If there is a change in practitioners, the new practitioner is not bound to follow the rotation established by the previous practitioner. Note: School student activity funds may be excluded from selection if they are otherwise addressed in a separate audit or AUP engagement. For each cash collection location selected: a) Obtain existing written documentation (e.g., insurance policy, policy manual, job description) and report whether each person responsible for collecting cash is (1) bonded, (2) not responsible for depositing the cash in the bank, recording the related transaction, or reconciling the related bank account (report if there are compensating controls performed by an outside party), and (3) not required to share the same cash register or drawer with another employee. b) Obtain existing written documentation (e.g., sequentially numbered receipts, system report, reconciliation worksheets, policy manual) and report whether the entity has a formal process to reconcile cash collections to the general ledger and/or subsidiary ledgers, by revenue source and/or agency fund additions, by a person who is not responsible for cash collections in the cash collection location selected. c) Select the highest (dollar) week of cash collections from the general ledger or other accounting records during the fiscal period and: > Using entity collection documentation, deposit slips, and bank statements, trace daily collections to the deposit date on the corresponding bank statement and report whether the deposits were made within one day of collection. If deposits were not made within one day of collection, report the number of days from receipt to deposit for each day at each collection location. > Using sequentially numbered receipts, system reports, or other related collection documentation, verify that daily cash collections are completely supported by documentation and report any exceptions.

Results: The Commission has written procedures describing that each person responsible for collecting cash is (1) bonded, (2) not responsible for depositing the cash in the bank, recording the related transaction, or reconciling the related bank account, and (3) not required to share the same cash register or drawer with another employee. The Commission has a formal process to reconcile cash collections to the general ledger, by revenue source, by a person who is not responsible for cash collections in the cash collection locations selected.

We selected five cash collection locations for testing, using the highest (dollar) week of cash collections for each location. Daily cash collections selected for testing were completely supported by documentation. While performing procedure 6(c), we noted that of the five weekly deposit locations tested, four locations had deposits that were not made the same or next day. The number of days from receipt to deposit greater than one for each day at each location are as follows:

Minimum Maximum Site Collection Day Number of Da^ Number of Days B 2 3 10 8 4 2 5 8 5 2 8 C 5 6 6 C 6 7 7 D 2 5 11 D 3 9 11 D 4 2 6 E 2 19 25

7. Obtain existing written documentation (e.g., policy manual, written procedure) and report whether the entity has a process specifically defined (identified as such by the entity) to determine completeness of all collections, including electronic transfers, for each revenue source and agency fund additions (e.g., periodic confirmation with outside parties, reconciliation to utility billing after cutoff procedures, reconciliation of traffic ticket number sequences, agency fund forfeiture monies confirmation) by a person who is not responsible for collections.

Results: The Commission has written documentation regarding processes to specifically determine completeness of all collections including electronic transfers, for each revenue source and agency fund additions by a person who is not responsible for collections.

Disbursements - General (excluding credit card/debit card/fuel card/P-Card purchases or payments)

8. Obtain a listing of entity disbursements from management or, alternately, obtain the general ledger and sort/filter for entity disbursements. Obtain management's representation that the listing or general ledger population is complete.

Results: We obtained from management a disbursement listing and management's representation that the listing is complete.

9. Using the disbursement population from #8 above, randomly select 25 disbursements (or randomly select disbursements constituting at least one-third of the dollar disbursement population if the entity had less than 25 transactions during the fiscal period), excluding credit card/debit card/fuel card/P-card purchases or payments. Obtain supporting documentation (e.g. purchase requisitions, system screens/logs) for each transaction and report whether the supporting documentation for each transaction demonstrated that: a) Purchases were initiated using a requisition/purchase order system or an equivalent electronic system that separates initiation from approval functions in the same manner as a requisition/purchase order system. b) Purchase orders, or an electronic equivalent, were approved by a person who did not initiate the purchase. c) Payments for purchases were not processed without (1) an approved requisition and/or purchase order, or electronic equivalent; (2) a receiving report showing receipt of goods purchased, or electronic equivalent; and (3) an approved invoice.

Results: We obtained supporting documentation for 25 disbursements. The criteria in steps 9(a), 9(b) and 9(c) were present for all 25 disbursements tested.

10. Using entity documentation (e.g., electronic system control documentation, policy manual, written procedure), report whether the person responsible for processing payments is prohibited from adding vendors to the entity's purchasing/disbursement system.

Results: We obtained and reviewed electronic system control documentation, which indicated that the person responsible for processing payments has the ability to add vendors to the entity's purchasing/disbursement system.

11. Using entity documentation (e.g., electronic system control documentation, policy manual, written procedure), report whether the persons with signatory authority or who make the final authorization for disbursements have no responsibility for initiating or recording purchases.

Results: We obtained the Commission's written policy, which describes that persons with signatory authority have no responsibility for initiating or recording purchases.

12. Inquire of management and observe whether the supply of unused checks is maintained in a locked location, with access restricted to those persons that do not have signatory authority, and report any exceptions. Alternately, if the checks are electronically printed on blank check stock, review entity documentation (electronic system control documentation) and report whether the persons with signatory authority have system access to print checks.

Results: We inquired of management and noted that checks are electronically printed on blank check stock. We verified that the persons with signatory authority do not have access to the required program used for printing checks.

13. If a signature stamp or signature machine is used, inquire of the signer whether his or her signature is maintained under his or her control or is used only with the knowledge and consent of the signer. Inquire of the signer whether signed checks are likewise maintained under the control of the signer or authorized user until mailed. Report any exceptions.

Results: No exceptions were identified as a result of these procedures. Credit Cards/Debit Cards/Fuel Cards/P-Cards

14. Obtain from management a listing of all active credit cards, bank debit cards, fuel cards, and P-cards (cards), including the card numbers and the names of the persons who maintained possession of the cards. Obtain management's representation that the listing is complete.

Results: We obtained from management a listing of all active credit cards, bank debit cards, fuel cards, and P-cards (cards), including the card numbers and the names of the persons who maintained possession of the cards. We obtained management's representation that the listing is complete.

15. Using the listing prepared by management, randomly select 10 cards (or at least one-third of the cards if the entity has less than 10 cards) that were used during the fiscal period, rotating cards each year. If there is a change in practitioners, the new practitioner is not bound to follow the rotation established by the previous practitioner. Obtain the monthly statements, or combined statements if multiple cards are on one statement, for the selected cards. Select the monthly statement or combined statement with the largest dollar activity for each card (for a debit card, select the monthly bank statement with the largest dollar amount of debit card purchases) and:

a) Report whether there is evidence that the monthly statement or combined statement and supporting documentation was reviewed and approved, in writing, by someone other than the authorized card holder. Note: Requiring such approval may constrain the legal authority of certain public officials (e.g., mayor of a Lawrason Act municipality); these instances should not be reported.) b) Report whether finance charges and/or late fees were assessed on the selected statements.

Results: We selected the month with the largest dollar activity for each of the 10 randomly selected P-Cards and noted that each of the 10 selections had evidence of review and approval by someone other than the authorized card holder and no assessed finance charges and/or late fees.

16. Using the monthly statements or combined statements selected under #15 above, obtain supporting documentation for all transactions for each of the 10 cards selected (i.e., each of the 10 cards should have one month of transactions subject to testing). a) For each transaction, report whether the transaction is supported by: > An original itemized receipt (i.e., identifies precisely what was purchased). > Documentation of the business/public purpose. For meal charges, there should also be documentation of the individuals participating. > Other documentation that may be required by written policy (e.g., purchase order, written authorization). b) For each transaction, compare the transaction's detail (nature of purchase, dollar amount of purchase, supporting documentation) to the entity's written purchasing/disbursement policies and the Louisiana Public Bid Law (i.e., transaction is a large or recurring purchase requiring the solicitation of bids or quotes) and report any exceptions. c) For each transaction, compare the entity's documentation of the business/public purpose to the requirements of Article 7, Section 14 of the Louisiana Constitution, which prohibits the loan, pledge, or donation of funds, credit, property, or things of value, and report any exceptions (e.g., cash advances or non-business purchases, regardless whether they are reimbursed). If the nature of the transaction precludes or obscures a comparison to the requirements of Article 7, Section 14, the practitioner should report the transaction as an exception.

Results: For the P-Cards selected for testing under #15 above, we obtained supporting documentation for all transactions. No exceptions were identified as a result of these procedures.

Travel and Expense Reimbursement

17. Obtain from management a listing of all travel and related expense reimbursements, by person, during the fiscal period or, alternately, obtain the general ledger and sort/filter for travel reimbursements. Obtain management's representation that the listing or general ledger is complete.

Results: We obtained from management the disbursement listing of all travel and related expense reimbursements, by person. We obtained management's representation that the listing is complete.

18. Obtain the entity's written policies related to travel and expense reimbursements. Compare the amounts in the policies to the per diem and mileage rates established by the U.S. General Services Administration (www.qsa.qov) and report any amounts that exceed GSA rates.

Results: We obtained Audubon's written policies related to travel and expense reimbursement and noted that the rates are in conformity with GSA rates.

19. Using the listing or general ledger from #17 above, select the three persons who incurred the most travel costs during the fiscal period. Obtain the expense reimbursement reports or prepaid expense documentation of each selected person, including the supporting documentation, and choose the largest travel expense for each person to review in detail. For each of the three travel expenses selected: a) Compare expense documentation to written policies and report whether each expense was reimbursed or prepaid in accordance with written policy (e.g., rates established for meals, mileage, lodging). If the entity does not have written policies, compare to the GSA rates (#18 above) and report each reimbursement that exceeded those rates. b) Report whether each expense is supported by: > An original itemized receipt that identifies precisely what was purchased. [Note: An expense that is reimbursed based on an established per diem amount (e.g., meals) does not require a receipt.] > Documentation of the business/public purpose (Note: For meal charges, there should also be documentation of the individuals participating.) > Other documentation as may be required by written policy (e.g., authorization for travel, conference brochure, certificate of attendance) c) Compare the entity's documentation of the business/public purpose to the requirements of Article 7, Section 14 of the Louisiana Constitution, which prohibits the loan, pledge, or donation of funds, credit, property, or things of value, and report any exceptions (e.g., hotel stays that extend beyond conference periods or payment for the travel expenses of a spouse). If the nature of the transaction precludes or obscures a comparison to the requirements of Article 7, Section 14, the practitioner should report the transaction as an exception. d) Report whether each expense and related documentation was reviewed and approved, in writing, by someone other than the person receiving reimbursement.

Results: For the three persons selected for testing, all of the reimbursements followed Audubon's written policies and met the criteria above without exception.

Contracts

20. Cbtain a listing of all contracts in effect during the fiscal period or, alternately, obtain the general ledger and sort/filter for contract payments. Obtain management's representation that the listing or general ledger is complete.

Results: We obtained a disbursement listing pertaining to all contracts in effect during the fiscal period. We obtained management's representation that the listing is complete.

21. Using the listing above, select the five contract "vendors" that were paid the most money during the fiscal period (excluding purchases on state contract and excluding payments to the practitioner). Obtain the related contracts and paid invoices and: a) Report whether there is a formal/written contract that supports the services arrangement and the amount paid. b) Compare each contract's detail to the Louisiana Public Bid Law or Procurement Code. Report whether each contract is subject to the Louisiana Public Bid Law or Procurement Code and: > If yes, obtain/compare supporting contract documentation to legal requirements and report whether the entity complied with all legal requirements (e.g., solicited quotes or bids, advertisement, selected lowest bidder). > If no, obtain supporting contract documentation and report whether the entity solicited quotes as a best practice. c) Report whether the contract was amended. If so, report the scope and dollar amount of the amendment and whether the original contract terms contemplated or provided for such an amendment. d) Select the largest payment from each of the five contracts, obtain the supporting invoice, compare the invoice to the contract terms, and report whether the invoice and related payment complied with the terms and conditions of the contract. e) Obtain/review contract documentation and board minutes and report whether there is documentation of board approval, if required by policy or law (e.g., Lawrason Act or Home Rule Charter).

Results: We selected the five contract "vendors" paid the most money during the fiscal period and obtained the related contracts and paid invoices. We noted that there was a written contract supporting the services arrangement and amount paid. Four out of the five contracts tested were subject to the Louisiana Public Bid Law, and we verified that the Commission complied with all applicable legal requirements. The Commission solicited quotes as a best practice for the contract not subject to the Louisiana Public Bid Law. Four out of the five contracts were amended. We verified that the original contract terms provided for such amendments. See below for the scope and dollar amount of the amendments to each contract.

Contract Dollar Amount Scope A $ 111,928.30 Change order/modifications of construction project B $ 172,456.74 Change order/modifications of construction project C $ 377,025.64 Change order/modifications of construction project D $ 166,594.26 Change order/modifications of construction project

We selected the largest payment and supporting invoice from each of the five contracts and verified that the invoice and payment complied with the terms and conditions of the contract. Four out of the five contracts were subject to board approval and were appropriately approved by a representative from the board.

Payroll and Personnel

22. Obtain a listing of employees (and elected officials, if applicable) with their related salaries, and obtain management's representation that the listing is complete. Randomly select five employees/officials, obtain their personnel files, and: a) Review compensation paid to each employee during the fiscal period and report whether payments were made in strict accordance with the terms and conditions of the employment contract or pay rate structure. b) Review changes made to hourly pay rates/salaries during the fiscal period and report whether those changes were approved in writing and in accordance with written policy. Results: This procedure is not applicable to the Commission as there are no employees of the entity.

10 23. Obtain attendance and leave records and randomly select one pay period in which leave has been taken by at least one employee. Within that pay period, randomly select 25 employees/officials (or randomly select one-third of employees/officials if the entity had less than 25 employees during the fiscal period), and:

a) Report whether all selected employees/officials documented their daily attendance and leave (e.g., vacation, sick, compensatory). (Note: Generally, an elected official is not eligible to earn leave and does not document his/her attendance and leave. However, if the elected official is earning leave according to policy and/or contract, the official should document his/her daily attendance and leave.)

b) Report whether there is written documentation that supervisors approved, electronically or in writing, the attendance and leave of the selected employees/officials.

c) Report whether there is written documentation that the entity maintained written leave records (e.g., hours earned, hours used, and balance available) on those selected employees/officials that earn leave.

Results: This procedure is not applicable to the Commission as there are no employees of the entity.

24. Obtain from management a list of those employees/officials that terminated during the fiscal period and management's representation that the list is complete. If applicable, select the two largest termination payments (e.g., vacation, sick, compensatory time) made during the fiscal period and obtain the personnel files for the two employees/officials. Report whether the termination payments were made in strict accordance with policy and/or contract and approved by management.

Results: This procedure is not applicable to the Commission as there are no employees of the entity.

25. Obtain supporting documentation (e.g., cancelled checks, EFT documentation) relating to payroll taxes and retirement contributions during the fiscal period. Report whether the employee and employer portions of payroll taxes and retirement contributions, as well as the required reporting forms, were submitted to the applicable agencies by the required deadlines.

Results: This procedure is not applicable to the Commission as there are no employees of the entity.

Debt Sen/ice (excluding nonprofits)

26. If debt was issued during the fiscal period, obtain supporting documentation from the entity, and report whether State Bond Commission approval was obtained.

Results: This procedure is not applicable to the Commission as no debt was issued during the period.

11 27. If the entity had outstanding debt during the fiscal period, obtain supporting documentation from the entity and report whether the entity made scheduled debt service payments and maintained debt reserves, as required by debt covenants.

Results: The Commission made scheduled debt service payments and maintained debt reserves, as required by debt covenants.

28. If the entity had tax millages relating to debt service, obtain supporting documentation and report whether millage collections exceed debt service payments by more than 10% during the fiscal period. Also, report any millages that continue to be received for debt that has been paid off.

Results: This procedure is not applicable to the Commission as the Commission does not have any tax millages exclusively relating to debt service.

Other

31. Inquire of management whether the entity had any misappropriations of public funds or assets. If so, obtain/review supporting documentation and report whether the entity reported the misappropriation to the legislative auditor and the district attorney of the parish in which the entity is domiciled.

Results: We inquired of management whether the Commission had any misappropriations of public funds or assets. Management reported the Commission has not had any misappropriations of public funds or assets.

32. Observe and report whether the entity has posted on its premises and website, the notice required by R.S. 24:523.1. This notice (available for download or print at www.lla.la.qov/hotline) concerns the reporting of misappropriation, fraud, waste, or abuse of public funds.

Results: The Commission has posted on its premises and website the notice required by R.S. 24:523.1.

33. If the practitioner observes or otherwise identifies any exceptions regarding management's representations in the procedures above, report the nature of each exception.

Results: No exceptions were identified as a result of these procedures.

We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on those C/C areas identified in the SAUPs. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

12 The purpose of this report is solely to describe the scope of testing performed on those C/C areas identified in the SAUPs, and the results of that testing, and not to provide an opinion on control or compliance. Accordingly, this report is not suitable for any other purpose. Under Louisiana Revised Statute 24:513, this report is distributed by the LLA as a public document.

A Professional Accounting Corporation

Metairie, LA June 19, 2018

13 Audubon Commission P.O. Box 4327, New Orleans, LA 70178

June 20, 2018

La Porte, APAC 111 Veterans Boulevard, Suite 600 Metairie, LA 70005

RE: Management Response to Statewide Agreed-Upon Procedures

Following are our responses to the exceptions noted in your report on the Louisiana Legislative Auditor's Statewide Agreed Upon Procedures performed for fiscal year ended December 31, 2017.

Board: 2.0. Response: The meeting did not take place that quarter due to the lack of a quorum.

Bank Reconciliations: 4.C. Response: Procedures have been implemented to ensure annual management review of outstanding checks 6 months and older. All aged checks will be reissued or submitted as unclaimed property.

Collections: 6.C. Response: All cash collections are deposited as soon as reasonably possible. There is extremely limited access to all funds until deposits are made and sufficient controls are in place to ensure safekeeping of funds.

Disbursements: 10. Response: Sufficient mitigating controls are in place to address this risk.

Sincerely,

Caroline Tierney ^ Director of Finance Audubon Nature Institute