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 US LLP 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