Louisiana State Board of Nursing - LLA Default Homepage

LOUISIANA STATE BOARD OF NURSINGDEPARTMENT OF HEALTH AND HOSPITALS

STATE OF LOUISIANABasic Financial Statements

and Independent Auditors* Reports

As of and for the Year Ended June 30,2005With Supplemental Information

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

Release Date

LOUISIANA STATE BOARD OF NURSING3510 N. CAUSEWAY BLVD., SUITE 601

METAIRIE, LOUISIANA 70002(504) 838-5332

GOVERNING BOARDAs of June 30, 2005

Nursing EducatorsPatsy Bourgeois, MSN, CNS, RN

Nora Steel, DNS, RN, CKaren Moody, Ph. D, RNC

Nursing AdministratorsDeborah Ford, MSN, RN, CNA

Frankie Rosenthal, MSN, RN, CNA, CNS

Other Areas of NursingDeborah Olds, RN

Tommie Jean Ashby, RN, BSNJames Harper, MSN, RN, CFNP

Advanced Practice NursingPatsy McClanahan, MSN, RDMS, RNCNP

Non-voting Medical DoctorsAlan J. Ostrowe, MD

William St John LaCorte, MD

Barbara Morvant, Executive Director

TABLE OF CONTENTS

Page

Independent Auditors* Report on the Financial Statements 1Management's Discussion and Analysis 2

Basic Financial Statements:

Statement of Net Assets 8Statement of Revenues, Expenses, and Changes in Fund Net Assets - 2005 9

Statement of Cash Flows-2005 10Notes to the Financial Statements '. 11

Other Report Required by Government Auditing Standards:

Independent Auditors' Report on Compliance and on Internal Control Over Financial Reporting 20

Schedule of Findings 21Resolution of Prior Year Findings 22

Supplemental Information Required by Division of Administration:

Annual Financial Report 23

LEROY J. CHUSTZ BEVERLY A. RYALL GEORGE F. DELAUNECPA, APAC CPA CPA, APCP. O. Box 158 7426 President Drive 7663 Anchor Drive

Denham Springs, LA 70727-0158 Baton Rouge, LA 70817 Ventress, LA 70783225/6675-2700 225/752-5147 225/937-9735

Fax: 225/667-3553 Fax: 225/752-5147 Fax: 225/638-3669

INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS

Board Members ofLouisiana State Board of NursingDepartment of Health and HospitalsState of Louisiana

Metairie, Louisiana

We have audited the accompanying basic financial statements of the Louisiana State Board of Nursing, acomponent unit of the State of Louisiana, as of and for the year ended June 30, 2005, as listed in the Table ofContents. These basic financial statements are the responsibility of Louisiana State Board of Nursing'smanagement. Our responsibility is to express an opinion on these basic financial statements based on our audit

We conducted our audit in accordance with auditing standards generally accepted in the United States of America andthe standards applicable to financial audits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States, and the Louisiana Governmental Audit Guide. Those standards and the guide require thatwe plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosuresin the basic financial statements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall basic financial statement presentation. We believethat our audit provides a reasonable basis for our opinion.

In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financialposition of the Louisiana State Board of Nursing, as of June 30, 2005, and the results of its operations and cashflows for the year then ended, in conformity with accounting principles generally accepted in the United States ofAmerica.

The accompanying Management's Discussion and Analysis, as listed in the Table of Contents, is requiredsupplementary information and therefore, is not a required part of the basic financial statements but is supplementaryinformation required by the Government Accounting Standards Board. We have applied certain limited procedures,which consisted principally of inquiries of management regarding the methods of measurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it.

In accordance with Government Auditing Standards, we have also issued our report dated August 12, 2005, on ourconsideration of the Louisiana State Board of Nursing's internal control over financial reporting and our tests ofits compliance with certain provisions of laws, regulations, and contracts. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be read in conjunction with this report inconsidering the results of our audit.

Our audit was performed for the purpose of forming an opinion on the financial statements that collectivelycomprise the Louisiana State Board of Nursing's basic financial statements. The accompanying supplementaryinformation, such as the Division of Administration Reporting packet, as listed in the table of contents is presentedfor purpose of additional analysis and are not a required part of the basic financial statements of the Louisiana StateBoard of Nursing. Such information has been subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financialstatements taken as a whole.

. 0slaux*Certified Public Accountant, APAC Certified Public Accountant Certified Public Accountant, APC

August 12,2005

STATE OF LOUISIANALOUISIANA STATE BOARD OF NURSING (BTA)MANAGEMENT'S DISCUSSION AND ANALYSTSAS OF JUNE 30,2005

The Management's Discussion and Analysis of the Louisiana State Board of Nursing's financial performancepresents a narrative overview and analysis of Louisiana State Board of Nursing's financial activities for the yearended June 30, 2005. This document focuses on the current year's activities, resulting changes, and currentlyknown facts in comparison with the prior year's information. Please read this document in conjunction with theadditional information contained in the transmittal letter and the State Board of Nursing's financial statements,which begin on page 8.

FINANCIAL HIGHLIGHTS

* The Louisiana State Board of Nursing's assets exceeded its liabilities at the close of fiscal year 2005 by52,733,313 which represents a 1.38% decrease from last fiscal year.

* The Louisiana State Board of Nursing's revenue increased $260,470 (or 9.44%) and expenses increasedby $138,711 (or 4.75%) from last fiscal year.

OVERVIEW OF THE FINANCIAL STATEMENTS

The following graphic illustrates the minimum requirements for Special Purpose Governments Engaged inBusiness-Type Activities established by Governmental Accounting Standards Board Statement 34, BasicFinancial Statements—and Management's Discussion and Analysis—for State and Local Governments.

-Management's Discussion and, Analysis ..:?;

Basic'Financial Stetemehts::< i;; -; . h^• - - * - " • • • • - * ' • • " ' ' ' ' ' " ' •

Required supplementary jihfcjrmatiqn •; '''(other than MD&Ai' ; ;. '% •• :: ' . • - . • • ' • - - ••«.--.'

These financial statements consist of three sections - Management's Discussion and Analysis (this section), thebasic financial statements (including the notes to the financial statements), and required supplementaryinformation.

STATE OF LOUISIANALOUISIANA STATE BOARD OF NURSING (BTA)MANAGEMENT'S DISCUSSION AND ANALYSISAS OF JUNE 30,2005Basic Financial Statements

The basic financial statements present information for the Louisiana State Board of Nursing as a whole, in aformat designed to make the statements easier for the reader to understand. The statements in this sectioninclude the Statement of Net Assets; the Statement of Activities; and the Statement of Cash Flows.

The Statejnent of_Nct. Assets (page 12) presents the current and long-term portions of assets and liabilitiesseparately. The difference between total assets and total liabilities is net assets and may provide a usefulindicator of whether the financial position of the State Board of Nursing is improving or deteriorating.

The Statement of Activities (page 13) presents information showing how the State Board of Nursing's assetschanged as a result of current year operations. Regardless of when cash is affected, all changes in net assets arereported when the underlying transactions occur. As a result, there are transactions included that will not affectcash until future fiscal periods.

The Cash Flow Statement (pages 15 - 16) presents information showing how the State Board of Nursing's cashchanged as a result of current year operations. The cash How statement is prepared using the direct method andincludes the reconciliation of operating income (loss) to net cash provided (used) by operating activities (indirectmethod) as required by GASB 34.

FINANCIAL ANALYSIS OF THE ENTITY

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:-J -^ .^ "2S& -.^h.^••'• * - < : . feii' - iV" „ '" !'" ~ *:V? J-; - ?'.. 2* 990 01 Qy -"-/'^ S •'*"'":- ' '^3 044 506" •''

^ •!• :.:/;'--Totelliabllifesj '^ =••' ^ fe' -*?• • ^v-:;/ ''; ' :-''"'^v.-282.434"il^'- •^•va 292'.326 .' '':• .riletkssets:;-'-:.;:v S ;i ... ' ^ p.;.:. "V'^^. •? -. •1"^. V -A, -^ W3 "-.; '• :, ^ : . ;"'' ..:* ^'^Investe^lh'cajpiUlaissetsinigtdiy^/^;;^.-^ •'.'.:.-•••X25I7^7:[^ '!;-' "-.;..•;' 19,135- ; 't-- . - , •* . : -y .RestrictedVES.V! V^- .t. :.;. »:;:«-•- ^.; '';.;"£*• ;^ ; '. >" "•"'.''. '^ ^'.fj. -^ .:,.';" - • : . • . . • ' - . .

s^^^'-^-UnrestqqtriJi-1."^ ';: • ; ' • • £ > • "'^N^^ .^ "^ • -^£^7.576 ?-=fl* ^ 'S- -'2.752,--180^ •*/Nj.;-"'l-V^^>-'?Totarrief'assetS'i '^'- fv'-•^-'^ -4 $ i:.-2733!313-"-^ $PT^— 2 7713J5 ' v

Restricted net assets represent those assets that are not available for spending as a result of legislativerequirements, donor agreements, grants requirements. Conversely, unrestricted net assets are those that do nothave any limitations on whal these amounts may be used for.

STATE OF LOUISIANALOUISIANA STATE BOARD OF NURSING (BTA)MANAGEMENT'S DISCUSSION AND ANALYSISAS OF JUNE 30, 2005

Net assets of the State Board of Nursing decreased by 538,002, or 1.38%, from June 30, 2004 to June 30, 2005.The State Board of Nursing's total revenues increased by 5260,470 or 9.44%. The total cost of all programs andservices increased by 5138,711 or more than 4.75%.

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if ^' ^y^.'-'irf.^.'' Sf tai:; ;>fC|. ;;y .-; | =;/. ; . - ^^^''KH :v":: • ""'*• L:"'-'^-' ;•••••:'- ' ¥a^r'';' ^!:."' V*3si,:'4-i W-Vf-1-^ '• -<• f '. :

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. , • . ; • , . - - . . - -.•-.,;.< v,iii •-• •• .•: isa^v*. •"*• . • " • V•-•'': ••^-Net;increase(decreasB) m.net assets" .,• $: . ' ;.:(3a,002). - ! ' ' - V . " . ' ? • ' • ' c - 1 ^ - ^ ' - " iT.v...;

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

At the end of 2005, the State Board of Nursing had 525,737 invested in a broad range of capital assets, includingfurniture, fixtures and equipment. (See Table below).

This amount represents a net decrease (including additions and deductions) of $6,602, or 34.50%, over last year.

STATE OF LOUISIANALOUISIANA STATE BOARD OF NURSING (BTA)MANAGEMENT'S DISCUSSION AND ANALYSISAS OF JUNE 30,2005

Capital Assets at Year-end(Net of Depreciation, in thousands)

2005 2004

Land $ $Buildings and improvementsEquipment 25,737 19,135Infrastructure

Totals $ 25,737 $ 19,135

This year's major additions included (in thousands):

• Computers $16,307

The Louisiana State Board of Nursing had claims and judgments of $ 0 outstanding at year-end compared with$ 0 last year. Other obligations include accrued vacation pay of $175,196.

VARIATIONS BETWEEN ORIGINAL AND FINAL BUDGETS

Revenues were approximately $290,397 over budget and expenditures exceeded budget by $36,499.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES

The State Board of Nursing elected and appointed officials considered the following factors and indicators whensetting next year's budget, rates, and fees. These factors and indicators include:

• Demand for Registered Nurses in Louisiana.• Increased staff and related benefits.• Fluctuations in interest rates on deposits.

The Louisiana State Board of Nursing expects that next year's results will have an increase in net assets based onthe following:

• Increased fees associated with license renewals

STATE OF LOUISIANALOUISIANA STATE BOARD OF NURSING (BTA)MANAGEMENT'S DISCUSSION AND ANALYSISAS OF JUNE 30,2005

CONTACTING THE STATE BOARD OF NURSING'S MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with ageneral overview of the State Board of Nursing's finances and to show the State Board of Nursing'saccountability for the money it receives. If you have questions about this report or need additional financialinformation, contact Barbara L. Morvant, MN, RN, Executive Director.

BASIC FINANCIAL STATEMENTS

The basic financial statements include integrated sets of financial statements as required by the GASB. Thesets of statements include:

• Proprietary Fund Financial Statements:

- Enterprise funds

In addition, the notes to the financial statements are included to provide information that is essential to auser's understanding of the basic financial statements.

LOUISIANA STATE BOARD OF NURSINGDEPARTMENT OF HEALTH AND HOSPITALSPROPRIETARY FUND - ENTERPRISE FUND

STATEMENT OF NET ASSETSJUNE 30,2005

ASSETSCurrent Assets

Cash and cash equivalents

Certificates of Deposit (Cash equivalent)

Receivables

Prepaid postage

Total Current Assets

Noacurren t Assets

Capital Assets (net)

Total noncurrent assets

TOTAL ASSETS

$ 462,460.22

2,500,000.00

15,168.97

12,381.35

2,990,010.54

25,736.68

25,736.68

3,015,747.22

LIABILITIES

Current Liabilities

Accounts payable

Accrued payroll and deductions

Total Current Liabilities

Noncurtent Liabilities

Compensated absences

Total Noncurtent Liabilities

TOTAL LIABILITIES

35,830.56

71,407.34

107,237.90

175,196.50

175,196.50

282,434.40

NET ASSETS

Investment in capital assets

Unrestricted

TOTAL NET ASSETS

25,736.68

2.707.576.14

$ 2,733312.82

The accompanying notes are an integral part of this financial statement.

8


STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETSFOR THE YEAR ENDED JUNE 30,2005

OPERATING REVENUES:

Licensesing, permits, and fees -

Licenses

Examinations

Enforcement actions

Other opeating revenues

Total Operating Revenues

$ 2,501,375.50

187,920.00

175,000.00

93.429.01

2,957,724.51

OPERTINGEXPENSES:

Licensing Program

Personal services -

Commissioners per diem

Salaries

Employee benefits

Travel

Operating services

Supplies

Professional services

Depreciation expense

13,275.00

1,628,184.19

432,813.69

69,602.54

510,911.08

123,484.21

268,473.25

07ns nn

Total Operating Expense 3,056,448.96

Operating Income (Loss) (98,724.45)

NON-OPEA TING INCOME.

Interest earnigs

Total non-operating income 777.44

Increase (decrease) in Net Assets (38,002.01)

Net Assets as of June 30,2004 2771314.83_

Net Assets as of June 30,2005 2,733,312.82


9


STATEMENT OF CASH FLOWSFOR THE YEAR ENDED JUNE 30,2005

Cash flows from operating activities

Cash received from customers

Cash payments to suppliers for goods and services

Cash payments to employees for services

Net cash provided (used) by operating activities

Cash flows from capital and related financing

Acquisition of capital assets

Cash flows from investing activities

Proceeds from Investments (Certificates of Deposit)

Interest earned on certificate of deposit

Net cash provided (used) by investing activities

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at the end of the year

Reconciliation of operating income (loss) to net cash provided (used) by operating

Operating income (loss)

Adjustments to reconcile operating income (loss) to net cash

Depreciation

Changes in assets and liabilities:

(Increase) decrease in receivables

(Increase) decrease in prepaid expenses

Increase (decrease) in accounts payable

Increase (decrease) in accrued payroll and related benefits

Increase (decrease) in compensated absences payable


$ 2,967,899.02

(991,327.34)

f2.065.308.581

88.736.90

1,400,000.00

60.722.44

1,460,722.44

1,355,678.26

1,606,781.96

2,962,460.22

(98,724.45)

9,705.00

1,661.30

8,513.21

(18,856.26)

9,075.81

(111.51)

(88,736.90)


10


STATE OF LOUISIANANOTES TO THE FINANCIAL STATEMENTS

JUNE 30,2005

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

I.A. INTRODUCTION

The Louisiana State Board of Nursing (the Board) was created by the Louisiana State Legislature under theprovisions of Louisiana Revised Statute 37:911. The Board is under the control of the Department of Healthand Hospitals and a component unit of the State of Louisiana and is an integral part of such reporting entity.The Board, which is composed of eleven (11) members appointed by the Governor of Louisiana for a termof four years. The Board consists of nine registered nurses selected from a list submitted by the LouisianaState Nurses Association and two physicians from a list submitted by the Louisiana State Medical Society,who serve as ex officio members of the Board as advisors and have no voting privileges. The nine nurses arecomposed of the following:

1. Two nursing service administrators2. Three nursing educators3. Thtee engaged in other areas of nurse practice4. One advanced practice registered nurse

The Board elects from its members a president, vice president, and such other officers as it considersnecessary to carry out the duties and functions of the board.

As authorized by Louisiana Revised Statute 37:914 E-, each member of the Board shall be receive $75.00 aday and reimbursement for actual expenses and mileage at the same rate set by the Division ofAdministration for state employees under the provisions of R.S. 39:231 for each day in actual attendance atboard meetings or for representing the board in an official board-approved activity.

The Board is charged with the responsibility of licensing and regulating registered nurses in the State ofLouisiana. Act 633 of the 1995 Legislative Session amended the Nurse Practice Act to require licensure ofAdvanced Practice Registered Nurses (APRNs). At June 30, 2005 approximately 44,444 registered nursesand 2,779 APRNs were licensed.

The Board's office is located in New Orleans, Louisiana, and employs 31 administrative personnel. TheBoard's operations are funded entirely through annual self-generated revenues.

l.B. FINANCIAL REPORTING ENTITY

GASB Statement No. 14, "The Financial Reporting Entity," has defined the governmental reporting entity tobe the State of Louisiana. The Louisiana State Board of Nursing is considered a component unit of the Stateof Louisiana because the state exercises oversight responsibility in that the governor appoints the boardmembers, and public service is rendered within the state's boundaries. The accompanying basic financialstatements present information only as to the transactions of the Louisiana State Board of Nursing, acomponent unit of the State of Louisiana.

Annually the State of Louisiana issues a basic financial statement which includes the activity contained in theaccompanying financial statement. The basic financial statement is issued by the Louisiana Division ofAdministration-Office of Statewide Reporting and Accounting Policy and audited by the LouisianaLegislative Auditor.

11



JUNE 30,2005

1C. BASIS OF PRESENTATION

Proprietary Fund Financial Statements

Proprietary Fund Financial Statements include a Statement of Net Assets, a Statement of Revenues,Expenses and Changes in Fund Net Assets, and a Statement of Cash Flows for each major proprietary fundand non-major funds aggregated.

Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basisof accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on theStatement of Net Assets. The Statement of Revenues, Expenses and Changes in Fund Net Assets presentsincreases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of accounting,revenues are recognized in the period in which they are earned while expenses are recognised in the period inwhich the liability is incurred.

Operating revenues in the proprietary funds are those revenues that are generated from the primaryoperations of the fund. All other revenues are reported as non-operating revenues. Operating expenses arethose expenses that are essential to the primary operations of the fund. All other expenses are reported asnon-operating expenses.

I.D. ASSETS, LIABILITIES AND NET ASSETS

Cash and Cash Equivalents. Investments

For the purpose of the Statement of Net Assets, and Statement of Cash Flows, cash and cash equivalentsinclude all demand, savings accounts, and certificates of deposits of the Board with an original maturity of 90days or less.

Investments are carried at fair value. Fair value is based on quoted market price.

Receivables

Receivables consist of all revenues earned at year-end and not yet received. Material receivables includeaccruals for licenses and interest which are accrued when earned.

Prepaids

Prepaids reflect payments to vendors that benefit future reporting periods and are also reported on theconsumption basis.

Capital Assets and Depreciation

Proprietary fund fixed assets are accounted for as capital assets. Capital assets purchased or acquired with anoriginal cost or donated value of $5,000 or more are recorded at historical cost, or estimated historical cost.Donated fixed assets are recorded at their estimated fair value at the date of donation.

Depreciation of all exhaustible fixed assets is recorded as an allocated expense in the Statement of Revenues,Expenses, and Changes in Fund Net Assets, with accumulated depreciation reflected in the Statement of NetAssets. Depreciation is provided over the assets estimated useful lives using the straight-line method ofdepreciation. The range of estimated useful lives by type of asset is as follows:

- Equipment 5-7 years

12



JUNE 30, 2005

Compensated Absences

Employees of the Board earn and accumulate vacation and sick leave at varying rates, depending upon theiryears of service. The amount of vacation and sick leave that may be accumulated by each employee isunlimited. Upon termination, employees or their heirs are compensated for up to 300 hours of unusedvacation leave at the employee's hourly rate of pay at the time of termination. Upon retirement, unusedvacation leave in excess of 300 hours plus unused sick leave are used to compute retirement benefits.

The liability for these compensated absences is recorded as long-term debt in the proprietary fundstatements. The current portion of this debt can not be estimated and accordingly, it is reported as anoncurrent liability.

Equity Classifications

Equity is classified as net assets and may be displayed in three components:

a. Investment in Capital Assets- Consists of capital assets including restricted capital assets netof 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.

b. Restricted Net Assets - Consists of net assets with constraints placed on the use either by(1) external groups such as creditors, grantors, contributors, or laws or regulations of othergovernments; or (2) law through constitutional provisions or enabling legislation.

c. Unrestricted Net Assets - AU other net assets that do not meet the definition of "restricted"or "investment in capital assets.

IE. REVENUES AND EXPENSES

Operating Revenues and Expenses

Operating revenues and expenses for proprietary funds are those that result from providing services andproducing and delivering goods and/or services. It also includes all revenue and expenses not related tocapital and related financing, noncapital financing, or investing activities.

NOTE 2. - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

By its nature as a state agency, the Board is subject to various state laws and regulations. An analysis of the Board'scompliance with significant laws and regulations and demonstration of its stewardship over Board resources follows.

2.A. FUND ACCOUNTING REQUIREMENTS

The Board complies with all state laws and regulations requiring the use of separate funds. The Board has nolegally required funds.

2.B. DEPOSITS AND INVESTMENTS LAWS AND REGULATIONS

In accordance with state law, all uninsured deposits of the Board in financial institutions must be securedwith acceptable collateral valued at the lower of market or par. Acceptable collateral includes certain U.S.Government or Government Agency securities, certain State of Louisiana or political subdivision debt

13



JUNE 30, 2005

obligations, or surety bonds. As required by 12 U.S.C.A., Section 1823(e), all financial institutions pledgingcollateral to the Board must have a written collateral agreement approved by the board of directors or loancommittee. As reflected in Note 3.A., all deposits were fully insured or collateralized.

Investments are limited by R.S. 49:327 and the Board's investment policy.

NOTE 3. - DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS

The following notes present detail information to support the amounts reported in the basic financial statements forits various assets, liabilities, equity, revenues, and expenditures/expenses.

3A, DEPOSITS WITH FINANCIAL INSTITUTIONS

For reporting purposes, deposits with financial institutions include savings, demand deposits, time deposits,and certificates of deposit Under state law the Louisiana State Board of Nursing may deposit funds within afiscal agent bank selected and designated by the Interim Emergency Board. Further, the Louisiana StateBoard of Nursing may invest in time certificates of deposit in any bank domiciled or having a branch officein the state of Louisiana; in savings accounts or shares of savings and loan associations and savings banks andin share accounts and share certificate accounts or federally or state chartered credit unions.

For the purpose of the Statement of Cash Flows, all highly liquid investments (including restricted assets witha maturity of three months or less when purchased) are considered to be cash equivalents.

Deposits in bank accounts are stated at cost, which approximates market. Under state law these depositsmust be secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank. Themarket value of the pledged securities plus the federal deposit insurance must at all times equal the amounton deposit with the fiscal agent. These pledged securities are held in the name of the pledging fiscal agentbank in a holding custodial bank in the form of safekeeping receipts.

The deposits at June 30, 2005, consisted of the following:

CertificatesCash of Deposit Total

Deposits in Bank Accounts Per Balance Sheet $ 462,360 | 2,500.000 $ 2,962,360

Bank Balances of Deposits Exposed to Custodial Credit Risk

a. Uninsured and uncollateralized

b. Uninsured and collateralized with securities held by thepledging institute

c. Uninsured and collateralized with securities held by thepledging institutions's trust department or agent but notin the entity's name 377.713 2,500,000 2.877,713

Total Bank Balances - All Deposits $ 477.713 $ 2,500.000 $ 2,977,713

14



JUNE 30, 2005

Reconciliation to Statement of Net Assets:

Petty cash

Unrestricted cash

Certificates of Deposit

Total Cash

100

462,360

2.500,000

S 2.962.460

3.B. ACCOUNTS RECEIVABLE

Receivables detail at June 30, 2005, is as follows:

Accrued interest

Payroll tax overpayment

Other receivable

Total receivable

3.C. CAPITAL ASSETS

Capital assets activity for the year ended June 30, 2005, was as follows:

Governmental

Activities

$ 4,774

8,389

2,006

Capital Assets, being depreciated

Equipment

Less accumulated depreciation

Total Equipment

Total Capital Assets, being depreciated

Total Capital Assets, net

Balanceat

June 30,2004 Additions

$

S

349,019 $

(329,885)

19,134

19,134

16,307 $

(9,705)

6,602

6,602

fi-fflg 1

Balanceat

June 30,Disposals 2005

(16,879) $ 348,447

16,879 (322,711)

0 25,736

25,736

3.D. ACCOUNTS PAYABLE

Payables in the general fund is composed of payables to vendors (33%) and accrued salaries and benefits(67%).

15



JUNE 30,2005

3.E. LONG-TERM DEBT

Governments[Activities

As of June 30,2005, the governmental long-term debt of the Board consists of the following:

Accrued Compensated Absences:

Current portion -not determinableNoncurrent portion $ 175,197

Total Governmental activity debt $ 175,197

Changes in^Long-Term Debt

The following is a summary of changes in long-term debt for the year ended June 30, 2005:

Type of Debt

Governmental Activities:Accrued Compensated

Absences

Total General Long-Term Debt

BalanceJ»iyi>2004

$ 175,308

$ 175,308

Additions

$ 18,346

$ 18,346

Deductions

$ 18,457 $

$ 18,457 $

BalanceJune 30,

2005

175,197

; 175,197

3.F. LEASE COMMITMENT

The Board entered into a lease for office space. The terms of the lease require monthly payments of |15,968,through June 16,2006,

Future minimum lease payments under capital lease are as follows:

Year EndingJune 30

2006 $ 182,572

$ 182,572

NOTE 4. - OTHER NOTES

4.A. EMPLOYEE PENSION AND OTHER BENEFIT PLANS

PensionPlsoi

Substantially all of the employees of the Board are members of the Louisiana State Employees RetirementSystem ("System"), a cost sharing, multiple-employer, defined benefit public employee retirement system(PERS) controlled and administered by a separate board of trustees.

16



JUNE 30,2005

All full time employees are eligible to participate in the System. Benefits vest with ten years of service. Atretirement age, employees are entitled to annual benefits equal to $300 plus 2.5% of their highest consecutive36 month average salary multiplied by their years of credited service.

Vested employees are entitled to a retirement benefit, payable monthly for life at (a) any age with thirty yearsof service, (b) age 55 with twenty-five years of service, and (c J at age sixty with ten years of service. Inaddition, vested employees have the option of reduced benefits at any age with twenty years of service. TheSystem also provides death and disability benefits. Benefits are established by state statute. The systemissues an annual publicly available financial report that includes financial statements and requiredsupplementary information for the System. That report may be obtained by writing to the Louisiana StateEmployees' Retirement System; P. O. Box 44213; Baton Rouge, LA 70804 or by calling (800)256-3000.

Members are required by state statute to contribute at 7.5% of gross salary. The Board is required tocontribute at an acruarially determined rate as required by R.S. 11:102. The contribution rate for fiscal yearended June 30, 2005 increased to 17.8 of annual covered payroll from the 15.8% and 14.1% required in fiscalyears ended June 30, 2004 and 2003 respectively. The board contributions to the System for the year endingJune 30, 2005, 2004 and 2003 are $265,800, $233,793, and $193,500 respectively, equal to the requiredcontributions for that year.

PostEmpSoymentHcaltb Cute and Life Insurance Benefits

Substantially all Board employees become eligible for post employment health care, dental, and life insurancebenefits if they reach normal retirement age while working for the Board. These benefits for retirees andsimilar benefits for active employees are provided through the insurance company whose premiums are paidjointly by the employee and the Board. The Board rccogni2es the cost of providing these benefits as anexpenditure when paid during the year. For the year ended June 30,2005, the cost of providing those benefitsfor six retirees totaled $17,840.

Deferred Compensation Plan

Certain employees of the Board participate in the Louisiana Deferred Compensation Plan adopted under theprovisions of Internal Revenue Code Section 457. Complete disclosures relating to this statewide plan areavailable in the financial statements of the State of Louisiana.

4.B. ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requiresthe Board's management to make estimates and assumptions that effect certain reported amounts anddisclosures. Accordingly, actual results may differ from those estimates.

4.C. RISK MANAGEMENT

The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;errors and omissions, injuries to employees; employee health and life; and natural disasters. The Boardmanages these various risks of loss as follows:

Type of Loss Method Managed Risk Retained

Torts, errors and omissions Purchased insurance with Louisiana Office of Risk NoneManagement public entity risk pool

Injuries to employees Participates in Louisiana Office of Risk Management public None(Workers' compensation) entity risk pool

17



JUNE 30, 2005

Physical property loss and Purchased insurance with Louisiana Office of Risk Nonenatural disasters Management public entity risk pool

Health and life Participates in Louisiana Office of Group Benefits Plan None

Management believes such coverage is sufficient to preclude any significant uninsured losses to the Board.Settled claims have not exceeded this insurance coverage in any of the past three fiscal years.

Public ED titv Risk Pool

The Board participates in the Louisiana State Office of Risk Management (public entity risk pool), which isresponsible for negotiating, compromising and settling all claims including all tort claims against the Board.

4.D. COMMITMENTS AND CONTINGENCIES

Contingencies

Litigation

The State of Louisiana, Division of Administration, Office of Risk Management has not reported any casespending.

4.E. COMPENSATION PAID TO BOARD MEMBERS

The schedule of per diem payments to Board Members is presented in compliance with House ConcurrentResolution No. 54 of die 1979 Session of the Louisiana Legislature. As authorized by Louisiana RevisedStatute 32:772, each member of the Board shall be reimbursed when actually in attendance at a board meetingor when required to travel for the official authorized business of the board, and such reimbursement shallnot exceed $75.00 per day.

lune 30, 2005

Commissioner _^_ Meetings^ ^Amount

TommieJeanAshby 19 $ 1,425

Patsy Bourgeois 23 1,725

James Harper 11 825

Deborah Ford 22 1,650

Elise Crapanzano 20 1,500

Patsy McClanahan 8 600

Karen Moody 27 2,025

Deborah Olds 18 1,350

Alan Ostrowe, MD 4 300

Frankie Rosenthai 24 1,800

William St. John LaCorte, 1 75 .

Total

18

OTHER REPORTS REQUIRED BY

GOVERNMENT AUDITING STANDARDS

The following pages contain a report on compliance with laws and regulations and on internal control overfinancial reporting as required by Government Auditing Standards* issued by the Comptroller General of theUnited States. This report is based solely on the audit of the financial statements and includes, whereappropriate, any reportable conditions and/or material misstatements in internal control or compliancematters that would be material to the presented financial statements.

19

LEROY J. CHUSTZ BEVERLY A. RYALL GEORGE F. DELAUNECPA,APAC CPA CPA,APCP. O. Box 158 7426 President Drive 7663 Anchor Drive

Denham Springs, LA 70727-0158 Baton Rouge, LA 70817 Ventress, LA 70783225/667-2700 225/752-5147 225/937-9735

Fax: 225/667-3553 Fax: 225/752-5147 Fax: 225/638-3669

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE ANDON INTERNAL CONTROL OVER FINANCIAL REPORTING

BASED ON AN AUDIT OF THE BASIC FINANCIAL STATEMENTSPERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS

Board Members ofLouisiana State Board of NursingDepartment of Health and HospitalsState of LouisianaMetairie, Louisiana

We have audited the basic financial statements of the Louisiana State Board of Nursing a component unit ofthe State of Louisiana, as of and for the year ended June 30, 2005, and have issued our report thereon datedAugust 12, 2005. We conducted our audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States, and the Louisiana Governmental Audit Guide

Compliance

As part of obtaining reasonable assurance about whether the Louisiana State Board of Nursing's basic financialstatements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, and contracts, noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results ofour tests disclosed one instance of noncompliance that is required to be reported under Government AuditingStandards and the Louisiana Governmental Audit Guide and which are described in the accompanying schedule offindings and questioned costs as item 2005-1.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the Louisiana State Board of Nursing's internal controlover financial reporting to determine our auditing procedures for the purpose of expressing our opinion on thebasic financial statements and not to provide assurance on the internal control over financial reporting. Ourconsideration of the internal control over financial reporting would not necessarily disclose all matters in theinternal control over financial reporting that might be material weaknesses. A material weakness is a conditionin which the design or operation of one or more of the internal control components does not reduce to arelatively low level the risk that misstatements in amounts that would be material in relation to the basic financialstatements being audited may occur and not be detected within a timely period by employees in the normalcourse of performing their assigned functions. We noted no matters involving the internal control over financialreporting and its operation that we consider to be material weakiesses.

This report is intended for the information and use of the Louisiana State Board of Nursing and itsmanagement, the Louisiana Legislative Auditor, the State of Louisiana and is not intended to be, and should notbe used by anyone other than these specified parties.

Certified Public Accountant, APAC Certified Public Accountant Certified Public Accountant, APC

August 12, 2005

20

LOUISIANA STATE BOARD OF NURSINGSCHEDULE OF FINDINGS

YEAR ENDED JUNE 30,2005

A. SUMMARY OF AUDIT RESULTS

1. The auditors' report expresses an unqualified opinion on the basic financial statements ofLouisiana State Board of Nursing.

2. No reportable conditions were disclosed during the audit of the basic financial statements.

3. One instance of noncompliance was disclosed during the audit of the basic financialstatements.

4. There were no federal awards received by Louisiana State Board of Nursing.

B. FINDINGS-FINANCIAL STATEMENTS AUDIT

Finding 2005-01 Louisiana Compliance Questionnaire Violation

Condition:

The questionnaire was not completed and adopted by the Board.

Criteria

The Louisiana Compliance Questionnaire must be completed by the agency and adopted by aresolution of the Board and submitted to the auditors prior to the issuance of the audit.

Cause

The questionnaire was completed by the agency staff on July 15, 2005 and signed by the executivedirector on August 11, 2005. The agency holds four board meetings per year. The June meetingwas held on June 13-15,2005 and the next board meeting is scheduled for September 12-14,2005.

Effect

Violation of Louisiana Audit Guide requirements.

Recommendation

Insure that the questionnaire is adopted by the Board prior to year-end.

Management Comment:

Management has revised it schedule for future years so that the Louisiana ComplianceQuestionnaire will be completed and adopted at its June meeting prior to year-end.

21

LOUISIANA STATE BOARD OF NURSINGRESOLUTION OF PRIOR YEAR FINDINGS

YEAR ENDED JUNE 30,2005

None

22

SUPPLEMENTAL INFORMATION REQUIRED BY

STATE OF LOUISIANADIVISION OF ADMINISTRATION

OFFICE OF STATEWIDE REPORTING AND ACCOUNTING POLICY

The following pages contain a report on the Board's Annual Financial Report prepared in accordance withthe requirements of the Louisiana Division of Administration, Office of Statewide Reporting andAccounting Policy.

23

(Agency Name)STATE OF LOUISIANA

Annual Financial StatementsJune 30, 20

C O N T E N T STRANSMITTAL LETTERAFFIDAVIT

Statements

Balance Sheet A

Statement of Revenues, Expenses, and Changes in Fund Net Assets B

Statement of Activities (includes Instructions) C

Statement of Cash Flows D

Notes to the Financial StatementsA. Summary of Significant Accounting PoliciesB. Budgetary AccountingC. Deposits with Financial Institutions and Investments (Instructions in back)D. Capital AssetsE. InventoriesF. Restricted AssetsG. LeaveH. Retirement SystemI. Post Retirement Health Care and Life Insurance BenefitsJ. LeasesK. Long-Term LiabilitiesL. LitigationM. Related Party TransactionsN. Accounting Changes0. In-Kind ContributionsP. Defeased IssuesQ. Cooperative EndeavorsR. Government-Mandated Nonexchange Transactions (Grants)S. Violations of Finance-Related Legal or Contractual ProvisionsT. Short-Term DebtU. Disaggregation of Receivable BalancesV. Disaggregation of Payable BalancesW. Subsequent EventsX. Segment InformationY. Due to/Due from and TransfersZ. Liabilities Payable from Restricted Assets

AA, Prior-Year Restatement of Net Assets

Schedules1 Schedule of Per Diem Paid Board Members2 Schedule of State Funding3 Schedules of Long-Term Debt4 Schedules of Long-Term Debt Amortization5 Schedule of Current Year Revenue and Expenses - Budgetary Comparison of Current

Appropriation - Non GAAP Basis15 Schedule of Comparison Figures

STATE OF LOUISIANALOUISIANA STATE BOARD OF NURSINGBALANCE SHEETAS OF JUNE 30, 2005

ASSETSCURRENT ASSETS:

Cash and cast) equivalents (Note 01}Investments (Note C2)Receivables {net of allowance for doubtful accounts)(Note U)Due from other funds (Note Y)PrepaymentsNotes receivableOther current assets

Total current assetsNONCURRENT ASSETS:

Restricted assets (Note F);CashinvestmentsReceivables

Notes receivableCapital assets (net of depreciatlon)(Note D)

LandBuildings and im provamantsMachinery and equipmentConstruction In progress

Other noncurrent assetsTotal noncurrent assets

Total assetsLIABILITIESCURRENT LIABILITIES:

Accounts payable and accruals (Note V)Due to other funds (Note Y)Amounts held in custody for othersOther current liabilitiesCurrent portion of long-term liabilities:

Contracts payableCompensated absences payable (Note K)Capital tease obligations - (Note J)Notes payableLiabilities payable from restricted assets (Note Z)Bonds payableOther long-term liabilities

Total current liabilitiesNON-CURRENT LIABILITIES:

Contracts payableReimbursement contracts payableCompensated absences payable (Note K)Capital lease obligations (Note J)Notes payableLiabilities payable from restricted assets (Note Z)Bonds payableOther long-term liabilities

Total long-term liabilitiesTotal liabilities

NET ASSETSInvested in capital assets, net of related debtRestricted for:

Capital projectsDebt serviceUnemployment compensationOther specific purposes

UnrestrictedTotal net assets

Total liabilities and net assets

2.962.460

1SJ69

12.361

2.99QJ1Q

25.737

2S.73T3.015.747

35.631

7JL407

1071238

175^96

175.196262.434

_2_5.737

2.707T5762.733.313

The accompanying notes are an integral part of this financial statement Statement A

STATE OF LOUISIANALOUISIANA STATE BOARD OF NURSINGSTATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETSFOR THE YEAR ENDED JUNE 30, 2005

OPERATING REVENUESLicensesExaminationsEnforcement actionsOther

Total operating revenues

OPERATING EXPENSESPersonal servicesCommissioners per diemSalariesEmployee benefits

TravelOperating ServicesSuppliesProfessional ServicesDepreciation expense

Total operating expenses

Operating income(loss)

NON-OPERATING REVENUES(EXPENSES)State appropriationsIntergovernmental revenues (expenses)TaxesUse of money and propertyGain (loss) on disposal of fixed assetsFederal grantsInterest incomeOther

Total non-operating revenues(expenses)

Income(loss) before contributions and transfers

Capital contributionsTransfers inTransfers out

Change in net assets

Total net assets - beginning as restated

Total net assets - ending

2,501,376187,920175,000

93,429

13,2751,628,184

432JTR69,603

510.911123,484268^73

970537)56,449

(98.724)

60,722

60J22

(38.002)

(38.002)

2,771,315

2.733.313


Statement B

STATE OF LOUISIANALOUISIANA STATE BOARD OF NURSINGSTATEMENT OF ACTIVITIESFOR THE YEAR ENDED JUNE 30,2005

Program Revenues

ExpensesCharges for

Services

Operating

Grants and

Contributions

Capital

Grants and

Contributions

Net (Expense)

Revenue and

Changes in

Net Assets

BTA $ _ 3,056,449 $ 2,957,725 $

General revenues:

Taxes

State appropriations

Grants and contributions not restricted to specific programs

Interest

Miscellaneous

Special items

Transfers

Total general revenues, special items, and transfers

Change in net assets

Net assets - beginning

Net assets - ending

(98,724)

60,722

60,722

(38.002)

(38,002)

Statement C

STATE OF LOUISIANALOUISIANA STATE BOARD OF NURSINGSTATEMENT OF CASH FLOWSFOR THE YEAR ENDED JUNE 30, 2005

Cash flows from operating activitiesCash received from customersCash payments to suppliers for goods and servicesCash payments to employees for servicesPayments in lieu of taxesInternal activity-payments to other fundsClaims paid to outsidersOther operating revenues(expenses)


Cash flows from non-capital financing activitiesState appropriationsProceeds from sale of bondsPrincipal paid on bondsInterest earningsProceeds from issuance of notes payablePrincipal paid on notes payableInterest paid on notes payableOperating grants receivedOtherTransfers InTransfers Out

Net cash provrded(used) by non-capital financing activities

Cash flows from capital and related financing activitiesProceeds from sale of bondsPrincipal paid on bondsInterest paid on bond maturitiesProceeds from issuance of notes payablePrincipal paid on notes payableInterest paid on notes payableAcquisition/construction of capital assetsProceeds from sale of capital assetsCapital contributionsOther

Net cash provided (used) by capital and relatedfinancing activities

Cash flows from investing activitiesPurchases of investment securitiesProceeds from sale of investment securitiesInterest and dividends earned on investment securities

Net cash provided(used) by investing activities

Net increase(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of yearCash and cash equivalents at end of year

The accompanying notes are an integral part of this statement.

2.967.899(991.327)

(2.065.3091

(88.7371

60.722

60.722

(16.307)

(16.3071

1.400.000

1.400.000

1.355.678

1.606.782

Statement D

STATE OF LOUISIANALOUISIANA STATE BOARD OF NURSINGSTATEMENT OF CASH FLOWSFOR THE YEAR ENDED JUNE 30. 2005

Reconciliation of operating income(loss) to net cash provided(used) by operating activities:

Operating income(loss) $ (98.724)Adjustments to reconcile operating income(loss) to net cash

Depreciation/amortization 9,705Provision for uncollectible accountsChanges in assets and liabilities:

(IncreaseXtecrease in accounts receivable, net 1.661(Increase)decrease in due from other funds(lncrease)decrease in prepayments 8,513(IncreaseXtecrease in inventories(IncreaseWecrease in other assetsIncrease(decrease) in accounts payable and accruals (18,856)lncrease(decrease) in accrued payroll and related benefits 9.076Increasefdecrease) in compensated absences payable (112)Increase(decrease) in due to other fundsIncreasefdecrease) in deferred revenuesIncreasefdecrease) in other liabilities

Net cash provided(used) by operating activities $ (88.7371

Schedule of noncash Investing, capital, and financing activities:

Borrowing under capital lease

Contributions of fixed assets

Purchases of equipment on account

Asset trade-ins

Other (specify)

Total noncash investing, capital, andfinancing activities:

(Concluded)

The accompanying notes are an integral part of this statement.

Statement D

STATE OF LOUISIANALOUISIANA STATE BOARD OF NURSINGNotes to the Financial StatementAs of and for the year ended June 30, 2005

INTRODUCTION

The Louisiana State Board of Nursing was created by the Louisiana State Legislature under the provisions ofLouisiana Revised Statute 39.311. The following Is a brief description of the operations of the Louisiana StateBoard of Nursing which includes the parish/parishes in which the Louisiana State Board of Nursing is located:

A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. BASIS OF ACCOUNTING

In April of 1984, the Financial Accounting Foundation established the Governmental Accounting StandardsBoard (GASB) to promulgate generally accepted accounting principles and reporting standards withrespect to activities and transactions of state and local governmental entities. The GASB has issued aCodification of Governmental Accounting and Financial Reporting Standards (GASB Codification). Thiscodification and subsequent GASB pronouncements are recognized as generally accepted accountingprinciples for state and local governments. The accompanying financial statements have been prepared inaccordance with such principles.

The accompanying financial statements of the State Board of Nursing present information only as to thetransactions of the programs of the Board as authorized by Louisiana statutes and administrativeregulations.

Basis of accounting refers to when revenues and expenses are recognized and reported in the financialstatements. Basis of accounting relates to the timing of the measurements made, regardless of themeasurement focus applied.

The accounts of the Board of Nursing are maintained in accordance with applicable statutory provisions andthe regulations of the Division of Administration - Office of Statewide Reporting and Accounting Policy asfollows:

Revenue Recognition

Revenues are recognized using the full accrual basis of accounting; therefore, revenues are recognizedin the accounting period in which they are earned and become measurable.

Expense Recognition

Expenses are recognized on the accrual basis; therefore, expenses, including salaries, are recognizedin the period incurred, if measurable.

B. BUDGETARY ACCOUNTING

The appropriations made for the operations of the various programs of the Louisiana State Board ofNursing are annual lapsing appropriations.

1. The budgetary process is an annual appropriation valid for one year.2. The agency is prohibited by statute from over expending the categories established in the budget.3. Budget revisions are granted by the Joint Legislative Budget Committee, a committee of the

Louisiana Legislature. Interim emergency appropriations may be granted by the Interim EmergencyBoard.

4. The budgetary information included in the financial statements include the original appropriation plussubsequent amendments as follows:

STATE OF LOUISIANALOUISIANA STATE BOARD OF NURSINGNotes to the Financial StatementAs of and for the year ended June 30,2005

APPROPRIATIONS

Original approved budget $ 2,931.640

Amendments: 3.085.983

3.019.950

Final approved budget $ 3,019.950

C. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS (If all agency cash and investmentsare deposited in the State Treasury, disregard Note C.)

1. DEPOSITS WITH FINANCIAL INSTITUTIONS

For reporting purposes, deposits with financial institutions include savings, demand deposits, timedeposits, and certificates of deposit. Under state law the Louisiana State Board of Nursing may depositfunds within a fiscal agent bank selected and designated by the Interim Emergency Board. Further, theBoard of Nursing may invest in time certificates of deposit in any bank domiciled or having a branch officein the state of Louisiana; savings accounts or shares of savings and loan associations and savings banks,and in share accounts and share certificate accounts of federally or state chartered credit unions.

For the purpose of the Statement of Cash Flows, all highly liquid investments (including restricted assetswith a maturity of three months or less when purchased) are considered to be cash equivalents.

Deposits in bank accounts are stated at cost, which approximates market. Under state law these depositsmust be secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank.The market value of the pledged securities plus the federal deposit insurance must at all times equal theamount on deposit with the fiscal agent. These pledged securities are held in the name of the pledgingfiscal agent bank in a holding or custodial bank in the form of safekeeping receipts held by the StateTreasurer.

Following GASB Statement 3, deposits were classified into three categories of custodial credit riskdepending on whether they were insured or collateralized, and who held the collateral and how it was held.Category 1 - Deposits that are covered by insurance (FDIC) or collateralized with securities that are heldby the entity in the entity's name or registered in the entity's name, (separate disclosure no longerrequired)Category 2 - Deposits that are not insured but are collateralized with securities that are held by thefinancial institution's trust department or agent and are in the entity's name, (separate disclosure no longerrequired)Category 3 - Deposits that are not covered by insurance and also are not collateralized. Not collateralizedincludes when the securities (collateral) are held by the financial institution's trust department or agent andthey are not in the entity's name, (separate disclosure still required)

GASB Statement 40 amended GASB Statement 3 to eliminate the requirement to disclose alldeposits by the 3 categories of risk listed above. GASB Statement 40 requires only the disclosureof deposits that are considered to be exposed to custodial credit risk. An antlty's deposits areexposed to custodial credit risk if the deposit balances are either 1) uninsured anduncollateralized, 2) uninsured and collateralized with securities held by the pledging financialinstitution, or 3) uninsured and collateralized with securities held by th« pledging financialinstitution's trust department or agent, but not in the entity's name.


The deposits at June 30, 2005, consisted of the following:

Deposits in Bank Accounts Per Balance Sheet $

CertificatesCash of Deposit

462,360 $ 2.500.000 $

Bank Balances of Deposits Exposed to Custodial Credit Risk:a. Uninsured and uncollateralizedb. Uninsured and collateralized with securities

held by the pledging institutionc. Uninsured and collatenalized with securities held

held by the pledging institution's trust departmentor agent, but not in the entities name 377,713

Total Bank Balances - All Deposits $

2,500,000

477.713 $ 2.500,000 $

Other(Described Totaj

2,962.360

2.877,713

2.977,713

NOTE: The "Total Bank Balances - All Deposits" will not necessarily equal the "Deposits in Bank Account perBalance Sheet".

The following is a breakdown by banking institution, program, account number, and amount of thebalances shown above:

Banking institution

1. Hibernia National Bank2. Hibemia National Bank

Program

General Fund AccountCertificates of Deposit

Amount

$ 462,3602.500,000

3.4.

Total 2,962,360

Cash in State Treasury and petty cash are not required to be reported in the note disclosure. However, toaid in reconciling amounts reported on the Balance Sheet to amounts reported in this note, fist below anycash in treasury and petty cash that are included on the Balance Sheet.

Cash in State TreasuryPetty cash

$ 0.00$ 100.00

2. INVESTMENTS N/A

Theauthorized by_

(BTA) does (does not) maintain investment accounts as(Note legal provisions authorizing investments by (BTA)).

Custodial Credit Risk

Investments can be exposed to custodial credit risk if the securities underlying the investment areuninsured and unregistered, not registered in the name of the entity, and are held either by thecounterparty, or the counterparty's trust department or agent but not in the entity's name.

GASB Statement 40 amended GASB Statement 3 to eliminate the requirement to disclose allinvestments by the 3 categories of risk. GASB Statement 40 requires only the separate disclosure


of Investments that are considered to be exposed to custodial credit risk. In addition, the totalreported amount and fair value columns still must be reported for total investments regardless ofexposure to custodial credit risk. Those Investments exposed to custodial credit risk are reportedby type In one of two separate columns depending upon whether they are held by a counterparty,or held by a counterparty's trust department or agent not In the entity's name.

Type of Investment

Repurchase agreementsU.S. Government securitiesU.S. Agency ObligationsCommon & preferred stock

Commercial paperCorporate bondsOther (identify)

Investments Exposedto Custodial Credit Risk

Uninsured,'Unregistered,and Held by

Uninsured, Counterparty's•Unregistered, Trust Dept. orandHeJdby Acer* Not In

Counterparty Entity's Name

All Investments Regardless ofCustodial Credit Risk Exposure

Reported FairAmount Value

Total investments $ - $ $ $

Unregistered - not registered in the name of the government or entity

3. DerivativesThe institution does/does not (circle one) invest in derivatives as part of its investment policy.Accordingly, the exposure to risks from these investments is as follows;credit riskmarket risklegal risk

4. Credit Risk, Concentration of Credit Risk, Interest Rate Risk, and Foreign Currency RiskDisclosures

A. Credit Risk of Debt Investments

Disclose the credit risk of debt Investments by credit quality ratings as described by ratingagencies as of the fiscal year end. AM debt investments regardless of type can be aggregated bycredit quality rating (if any are un-rated, disclose that amount).


Rating Fair Value

Total

B. Interest rate Risk

1. Disclose the interest rate risk of debt investments by listing the investment type, total fair value,and breakdown of maturity in years for each debt investment type.

Investment Maturities (In Years)Fair Less Greater

Type of Debt Investment Value Than 1 1-5 6-10 Than 10

U.S. Government obligationsU.S. Agency obligationsU.S. Treasury obligationsMortgage backed securitiesCollateralized mortgage obligationsCorporate bondsOther bondsMutual fundsOther

Total debt investments

2. List the fair value and terms of any debt investments that are highly sensitive to changes ininterest rates due to the terms of the investment (eg. coupon multipliers, reset dates, etc.):

Debt Investment Fair Value Terms

Total

C. Concentration of Credit Risk

List, by amount and issuer investments in any one issuer that represents 5% or more of totalinvestments (not including U.S. government securities, mutual funds, and Investment pools).


% of Totaltgguer Amount Investments

Total

D. Foreign Currency Risk

Disclose the U.S. dollar balances of any deposits or investments that are exposed to foreigncurrency risk (deposits or investments denominated In foreign currencies). List by currencydenomination and investment type, If applicable.

Fair Value in U.S. DollarsForeign Currency Bonds Stocks

$ $

Total

5. Policies

Briefly describe the deposit and/or investment policies related to the custodial credit risk, creditrisk of debt investments, concentration of credit risk, interest rate risk, and foreign currency riskdisclosed in this note. If no policy exists concerning the risks disclosed, please state that fact.

6. Other Disclosures Required for Investments

a. Investments in pools managed by other governments or mutual funds_

b. Securities underlying reverse repurchase agreements.

c. Unrealized investment losses

d. Commitments as of (fiscal close), to resell securities under yield maintenancerepurchase agreements:1. Carrying amount and market value at June 30 of securities to be resold

2. Description of the terms of the agreement


e. Losses during the year due to default by counterparties to deposit or investment transactions

f. Amounts recovered from prior-period losses which are not shown separately on the balancesheet

Legal or Contractual Provisions for Reverse Repurchase Agreements

g. Source of legal or contractual authorization for use of reverse repurchase agreements

h. Significant violations of legal or contractual provisions for reverse repurchase agreements thatoccurred during the year

Reverse Repurchase Agreements at Year-End

i. Credit risk related to the reverse repurchase agreements (other than yield maintenance agreements)outstanding at balance sheet date, that is, the aggregate amount of reverse repurchase agreementobligations including accrued interest compared to aggregate market value of the securitiesunderlying those agreements including interest

j. Commitments on (fiscal close), to repurchase securities under yield maintenanceagreements

k. Market value on (fiscal close), of the securities to be repurchased

I. Description of the terms of the agreements to repurchase

m. Losses recognized during the year due to default by counterparties to reverse repurchaseagreements

n. Amounts recovered from prior-period losses which are not separately shown on the operatingstatement , ,

Fair Value Disclosures

o. Methods and significant assumptions used to estimate fair value of investments, if fair value is notbased on quoted market prices ___

p. Basis for determining which investments, if any, are reported at amortized cost

q. For investments in external investment pools that are not SEC-registered, a brief description of anyregulatory oversight for the pool

r. Whether the fair value of your investment in the external investment pool is the same as the value ofthe pool shares :


s. Any involuntary participation in an external investment pool

L If you are unable to obtain information from a pool sponsor to determine the fair value of yourinvestment in the pool, methods used and significant assumptions made in determining that fairvalue and the reasons for having had to make such an estimate

u. Any income from investments associated with one fund that is assigned to another fund.

D. CAPITAL ASSETS-INCLUDING CAPITAL LEASE ASSETS

The fixed assets used in the Special Purpose Government Engaged only in Business-Type Activities areincluded on the balance sheet of the entity and are capitalized at cost Depreciation of all exhaustiblefixed assets used by the entity are charged as an expense against operations. Accumulated depreciationis reported on the balance sheet, Depreciation for financial reporting purposes is computed by thestraight-line method over the useful lives of the assets.

Year ended June 30, 2005Prior Adjusted

Balance Period Balance6/30/2Q04 Adjustment 6/30/2004 Additions

BalanceTransfers' Retirements 6/30/2005

Capital assets not being depreciatedLandNon-depreciable land improvementsCapitalized collectionsConstruction In progress

Total capital assets not beingdepreciated

Other capital assetsFurniture, fixtures, and equipment

Less accumulated depredationTotal furniture, fixtures, and equipment

Buildings and improvementsLess accumulated depreciationTotal buildings and Improvements

Depreciable land improvementsLess accumulated depreciationTotal depreciable land improvements

InfrastructureLess accumulated depreciationTotal infrastructure

Total other capital assets

Capital Asset Summary:Capital assets not being depreciatedOther capital assets, at cost

Total cost of capita! assetsLess accumulated depreciation

Capital assets, net

19,134 S

- $349,019349,019(329,885)

$ 19,134 $

_ $

— *J

349,019 $(329,885)

19,134

- S - $ - $

$ 349,019 $ 16,308 $(329,885) (9,705)

19.134 6,603

- i - S

S (23.810)$ 341,51723,810 (315,780)

25,737

-

_ „ -

19,134 $

349,019

6,603

- $16.308

349,019(329,885)

16,308(9,705)

19,134 S 6,603 $

_ $

(23,810)23,810

* Should be used only for those completed projects coming out of c&istruction-in-progress to fixed assets; not associated

25,737

_ $(23,810) 341,517

341,517(315,780)

25,737


E. INVENTORIES N/A

The unit's inventories are valued at (method of valuation). These areperpetual inventories and are expensed when used. NOTE: Do not include postage. This must beshown as a prepayment.

F. RESTRICTED ASSETS N/A

Restricted assets in the (BTA) at (fiscal year end), reflected at$ in the non-current assets section on Statement A, consist of $ in cash withfiscal agent, $ in receivables, and $ investment in

(identify the type investments held.) State thepurpose of the restriction:

G. LEAVE

1. COMPENSATED ABSENCES

The Louisiana State Board of Nursing has the following policy on annual and sick leave:

Employees earn and accumulate annual and sick leave at various rates depending on their years ofservice. The amount of annual and sick leave that may be accumulated by each employee is unlimited.Upon termination, employees or their heirs are compensated for up to 300 hours of unused annual leaveat the employee's hourly rate of pay at the time of termination. Upon retirement, unused annual leave inexcess of 300 hours plus unused sick leave is used to compute retirement benefits.

The cost of leave privileges, computed in accordance with GASB Codification Section C60, is recognizedas a current year expenditure in the fund when leave is actually taken; it is recognized in the enterprisefunds when the leave is earned. The cost of leave privileges applicable to general government operationsnot requiring current resources is recorded in long-term obligations.

2. COMPENSATORY LEAVE

Employees who are considered having non-exempt status according to the guidelines contained in the FairLabor Standards Act may be paid for compensatory leave earned (K-time). Upon termination or transfer,an employee will be paid for any time and one-half compensatory leave earned and may or may not bepaid for any straight hour-for-hour compensatory leave earned. Compensation paid will be based on theemployees' hourly rate of pay at termination or transfer. The liability for accrued payable compensatoryleave at June 30, 2005 computed in accordance with the Codification of Governmental Accounting andFinancial Reporting Standards, Section C60.105 is estimated to be $175,196. The leave payable isrecorded in the accompanying financial statements.

H. RETIREMENT SYSTEM

Substantially all of the employees of the Board Of Nursing are members of the Louisiana State EmployeesRetirement System, a cost sharing multiple-employer, defined benefit pension plan. The System is astatewide public employee retirement system (PERS) for the benefit of state employees, which isadministered and controlled by a separate board of trustees.

All full-time Nursing Board employees are eligible to participate in the System. Benefits vest with 10 years ofservice. At retirement age, employees are entitled to annual benefits equal to $300 plus 2.5% of theirhighest consecutive 36 months' average salary multiplied by their years of credited service.


Vested employees are entitled to a retirement benefit, payable monthly for life at (a) any age with 30 years ofservice, (b) age 55 with 25 years of service, or (c) age 60 with 10 years of service. In addition, vestedemployees have the option of reduced benefits at any age with 20 years of service. The System alsoprovides death and disability benefits. Benefits are established or amended by state statute. The Systemissues an annual publicly available financial report that includes financial statements and requiredsupplementary information for the System. That report may be obtained by writing to the Louisiana StateEmployees Retirement System, Post Office Box 44213, Baton Rouge, Louisiana 70804-4213, or by calling(225) 922-0608 or (800) 256-3000.

Members are required by state statute to contribute 7.5% of gross salary, and the Board of Nursing isrequired to contribute at an actuarially determined rate as required by R.S. 11:102. The contribution rate forthe fiscal year ended June 30, 2005, increased to 17.8% of annual covered payroll from the 15.8% and14.1% required in fiscal years ended June 30, 2004 and 2003, respectively. The Board of Nursing'scontributions to the System for the years ending June 30, 2005, 2004, and 2003, were $265,880, $233,793,and $193,500, respectively, equal to the required contributions for each year.

I. POST RETIREMENT HEALTH CARE AND LIFE INSURANCE BENEFITS

GASB 12 requires the following disclosures about an employer's accounting for post retirement health careand life insurance benefits:

1. A description of the benefits provided and the employee group covered.2. A description of the accounting and funding policies followed for those benefits.3. The cost of those benefits recognized for the period, unless the costs are not readily determinate.**4. The effect of significant matters affecting the comparability of the costs recognized for a(( periods

presented.

"If the cost of any post retirement health care or life insurance benefits cannot readily be separated from thecost of providing such benefits for active employees or otherwise be reasonably approximated, the total costof providing those benefits to active employees and retirees, as well as the number of active employees andthe number of retirees covered by the plan must be disclosed.

Substantially ail Nursing Board employees become eligible for post employment health care, dental and lifeinsurance benefits if they reach normal retirement age while working for the Board. These benefits forretirees and similar benefits for active employees are provided through an insurance company whosepremiums are paid jointly by the employee and the Nursing Board. For 2005, the cost of providing thosebenefits for the 6 retirees totaled $17,840.

The Louisiana State Board of Nursing provides certain continuing health care and life insurance benefits forits retired employees. Substantially all Nursing Board employees become eligible for those benefits if theyreach normal retirement age while working for the Board. Those benefits for retirees and similar benefits foractive employees are provided through an insurance company whose monthly premiums are paid jointly bythe employee and by the Board of Nursing. The Board of Nursing recognizes the cost of providing thesebenefits as an expenditure when paid during the year, which was $17,840 for the year ended June 30,2005.The cost of providing those benefits for 6 retirees is separable from the cost of providing benefits for the 32active employees.

J. LEASES

1. OPERATING LEASES

The total payments for operating leases during fiscal year July 1, 2004 - June 30, 2005amounted to $200,739.

A schedule of payments for operating leases follows:

10


FY2011- FY2016-Nature of lease FY20Q6 FY2007 FY2008 FY2QQ9 FY20010 2015 2020Office Occupancy $ 182.572 $ $ $ $ $ $

Total $ 182.572 $ - $ - $ - $ - $ - $

2. CAPITAL LEASES N/A

Capital leases are (are not) recognized in the accompanying financial statements. The amounts to beaccrued for capital leases and the disclosures required for capital and operating leases by NationalCouncil on Governmental Accounting (NCGA) Statement No. 5, as adopted by the GovernmentalAccounting Standards Board, and FASB 13 should be reported on the following schedules:

Capital leases are defined as an arrangement in which any one of the following conditions apply: (I)ownership transfers by the end of the lease, (2) the lease contains a bargain purchase option, (3) thelease term is 75% of the asset life or, (4) the discounted minimum lease payments are 90% of the fairmarket value of the asset.

SCHEDULE A - TOTAL AGENCY CAPITAL LEASES EXCEPT LEAF

Remaining RemainingGross Amount of interest to principal to

Leased Asset end of end ofNature of lease (Historicalgosts) [ease legse

a. Office space $ $ $

b. Equipmentc. LandTotal $ - $ - $ -

The following is a schedule by years of future minimum lease payments under capital teases together withthe present value of the net minimum lease payments as of (last day of your fiscal year) and a breakdownof yearly principal and interest: (Note: If lease payments extend past FY2025, please create additionalrows and report these future minimum lease payments in five year increments.)

11


Year ending June 30: Total

2006 $20072008200920102011-20152016-20202021-2025Total minimum lease payments

Less amounts representing executory costsNet minimum lease payments

Less amounts representing interestPresent value of net minimum lease payments $

SCHEDULE B - NEW AGENCY CAPITAL LEASES EXCEPT LEAF


Leased Asset end of end ofNature of lease (Historical Costs) lease lease

a. Office space $ $ $b. Equipmentc. Land ^___Total $ $ - $ -

The following is a schedule by years of future minimum lease payments under capital leases together withthe present value of the net minimum lease payments as of (last day of your fiscal year) and a breakdownof yearly principal and interest: (Note: If lease payments extend past FY2025, please create additionalrows and report these future minimum lease payments in five year increments.)


2006 $20072008200920102011-20152016-20202021-2025Total minimum lease payments -_

Less amounts representing executory costsNet minimum lease payments ^_


12


SCHEDULE C - LEAF CAPITAL LEASES


Leased Asset end of end ofNature of lease (Historical Costs) lease lease

a. Office space $ $ $b. Equipmentc. LandTotal $ $ $

The following is a schedule by years of future minimum lease payments under capital leases together withthe present value of the net minimum lease payments as of (last day of your fiscal year) and a breakdownof yearly principal and interest: (Note: If lease payments extend past FY2025, please create additionalrows and report these future minimum lease payments in five year increments.)


2006 $20072008200920102011-20152016-20202021-2025Total minimum lease payments

Less amounts representing executory costsNet minimum lease payments


3. LESSOR DIRECT FINANCING LEASES

A lease is classified as a direct financing lease (1) when any one of the four capitalization criteria used todefine a capital lease for the lessee is met and (2) when both the following criteria are satisfied:

• Collectibility of the minimum lease payments is reasonably predictable.• No important uncertainties surround the amount of the unreimbursable costs yet to be incurred by

the lessor under the lease.

13


Provide a general description of the direct financing agreement, and complete the chart below:

Minimum lease Remaining Interest Remaining PrincipalComposition of lease Date of lease payment repeivable to end of lease to end of lease

a. Office space $ $ $ $

b. Equipment

c. Land

Less amounts representing executory costsMinimum lease payment receivable

Less allowance for doubtful accountsNet minimum lease payments receivable

Less: Estimated Residual Value of Leased PropertyLess unearned income

Net investment in direct financing lease $_

Minimum lease payments receivables do not include contingent rentals which may be received asstipulated in the lease contracts. Contingent rental payments occur if for example the use of theequipment, land, or building etc., exceeds a certain level of activity each year. Contingent rentals receivedfor fiscal year 2005 were $__ for office space, $ for equipment, and $ forland.

The following is a schedule by year of minimum leases receivable for the remaining fiscal years of thelease as of (the last day of your fiscal year): (Note: If lease receivables extend pastFY2025, please create additional rows and report these future minimum lease payment receivables in fiveyear increments.)

Year ending200620072008200920102011-20152016-20202021-2025

Total

4. LESSOR - OPERATING LEASE

When a lease agreement does not satisfy at least one of the four criteria (common to both lessee andlessor accounting), and both of the criteria for a lessor (collectibility and no uncertain reimbursable costs),the lease is classified as an operating lease. In an operating lease, there is no simulated sale and thelessor simply records rent revenues as they become measurable and available.

14


Provide the cost and carrying amount, if different, of property on lease or held for lease organized by majorclass of property and the amount of accumulated depreciation as of 20 :

Accumulated CarryingCost depreciation amount

a. Office space $ $ $b. Equipmentc. LandTotal $ - $

The following is a schedule by years of minimum future rentals receivable on non-cancelable operatinglease(s) as of (the last day of your fiscal year): (Note: If lease receivables extend pastFY2025, please create additional columns and report these future minimum lease payment receivablesin five year increments.)

Year EndedJune 30, JDfflceSpace Equipment Land Other Total

2006 $ S $ $ $ -2007200820092010

2011-20152016-2020

2021-2025

Total $ - $ - $ - $

Current year lease revenues received in fiscal year totaled $_

Contingent rentals received from operating leases received for your fiscal year was $for office space, $ for equipment, and $ for land.

K. LONG-TERM LIABILITIES

The following is a summary of long-term debt transactions of the entity for the year ended June 30,20_

15


Year ended June 30.2005Balance Balance AmountsJune 30, June 30, due within

2004 Additions Reductions 2005 one yearBonds and notes payable:

Notes payable $ $ $ $ - $Reimbursement contracts payableBonds payable ~

Total notes and bonds ^_ -_ ^__ -_ -__Other liabilities:

Contracts payableCompensated absences payable 175,308 18,345 18,457 175,196Capital lease obligationsLiabilities payable from restricted assets -Claims and litigation -Other long-term liabilities --

Total other liabilities 175,308 18,345 18.457 175.196

Total long-term liabilities $ 175.308 $ 18,345 $ 18.457 $ 175.196 $

A detailed summary, by issues, of all debt outstanding at June 30, 2005, including outstanding interestof $ is shown on schedule 4, Schedule 5 is an amortization schedule of theoutstanding debt. (Send OSRAP a copy of the amortization schedule for any new debt issued.)

L. LITIGATION N/A

1. The (BTA) is a defendant in litigation seeking damages as follows:

Description of Litigation andDate of Probable outcome (remote. Primary Damages InsuranceAction reasonably possible or probable) Attorney Claimed Coverage

Totals

The (BTA)*s legal advisor estimates that potential claims not covered by insurance wouldaffect the financial statement as follows (would not materially affect the financial statements or is unable toestimate the effect on the financial statement):

2. Claims and litigation costs of $ were incurred in the current year and are reflectedthe accompanying financial statement.

in

16


M. RELATED PARTY TRANSACTIONS N/A

(FASB 57 requires disclosure of the description of the relationship, the transaction(s), the dollar amount ofthe transaction(s) and any amounts due to or from which result from related party transactions. List allrelated party transactions),

N. ACCOUNTING CHANGES N/A

Accounting changes made during the year involved a change in accounting (principle,estimate, error or entity). The effect of the change is being shown in .

O. IN-KIND CONTRIBUTIONS N/A

(List all in-kind contributions that are not included in the accompanying financial statements.)

Cost/Estimated Cost/Fair MarketIn-Kind Contributions Value/As Determinedly the Grantor

Total

P. DEFEASED ISSUES N/A

In , 20 , the . ^_(BTA), issued$ of taxable bonds. The purpose of the issue was to provide monies to advancerefund portions of bonds. In order to refund the bonds, portions of the proceeds of thenew issue $ , plus an additional $ of sinking fund monies together withcertain other funds and/or securities, were deposited and held in an escrow fund created pursuant to anescrow deposit agreement dated , between the (BTA) and the escrow trustee.The amount in the escrow, together with interest earnings, will be used to pay the principal, redemptionpremium, and interest when due. The refunding resulted in reducing the total debt service payments byalmost $ and gave the (BTA) an economic gain (difference between the presentvalues of the debt service payments on the old and new debt of $_ .

17


Q. COOPERATIVE ENDEAVORS N/A

IRS 33:9022 defines cooperative endeavors as any form of economic development assistance between

and among the state of Louisiana, its local governmental subdivisions, political corporations, public benefitcorporations, the United States government or its agencies, or any public or private association,corporation, or individual. The term cooperative endeavor includes cooperative financing, cooperativedevelopment, or any form of cooperative economic development activity. The state of Louisiana hasentered into cooperative endeavor agreements with certain entities aimed at developing the economy ofthe state.

Some cooperative endeavor contracts are not coded with a document type of "COP" on the ContractFinancial Management Subsystem (CFMS), but are considered cooperative endeavors. Include thesebelow with your cooperative endeavor contracts coded with a document type of "COP". Examples ofcontracts that are considered cooperative endeavors, but are not coded with a document type of "COP"include contracts that fall under delegated authority, Facility Planning and Contra! "CEA" contracts, certainfederal government contracts, contracts that legislative auditors may have designated as such within youragency, work incumbent programs, etc. In prior years, this information was requested as supplementaldocumentation after the AFRs were submitted, usually in October or November.

The liability outstanding for fiscal year ending June 30, 2005, by funding source, is as follows:

BalanceFunding Source June 30. 2005

State General Fund $Self-generated revenueStatutorily dedicated revenueGeneral obligation bondsFederal fundsInteragency transfersOther funds/combination

NOTE: Amounts in excess of contract limits cannot be used to reduce the outstanding contractbalance at June 30, 2005 For example, if a contract specifies a percentage of usage for eachmonth (25%) and usage exceeds that percentage (75%), you cannot claim actual usage thatexceeds contract requirements (50%).

NOTE: In order to compute your ending balances by funding source, you should begin with yourbalances at June 30, 2004. These amounts will be increased by amounts for new contractsand amendments and decreased for payments as well as for liquidations.

18


R. GOVERNMENT-MANDATED NONEXCHANGE TRANSACTIONS (GRANTS) N/A

The following government-mandated nonexchange transactions (grants) were received during fiscal year2004-2005:

CFDA State Match Total AmountNumber Program Name Pgrcentaae of grant

$

Total government-mandated nonexchange transactions (grants)

S. VIOLATIONS OF FINANCE-RELATED LEGAL OR CONTRACTUAL PROVISIONS N/A

At June 30, 20 , the (BTA) was not in compliance with the provisions ofBond Reserve Covenant that requires

. The (BTA) didto correct this deficiency.

T. SHORT-TERM DEBT N/A

The_ (BTA)issues short-term notes for the following purposes:

Short-term debt activity for the year ended June 30, 20 , was as follows:

List the type of S-T debt Beginning Ending(e.g., tax anticipation notes): Balance Issued Redeemed Balance

The (BTA) uses a revolving line of credit for the followingpurposes: . __

. Short-term debt activity for the year ended June 30,20 , was as follows:

Beginning EndingBalance Draws Redeemed Balance

Line of credit $ $ $ $

19


U. DISAGGREGAT1ON OF RECEIVABLE BALANCES

Receivables at June 30,2005, were as follows:

ActivityLicense RenewalsInterestPayroll Taxes (IRS)

Gross receivables

CustomerReceivables

$ 2,006.00 $

$ 2,006.00 $

Receivablesfrom other

Taxes Governments$ $

8,389.00

- $ 8,389.00 $

OtherReceivables

$4,774.00

4,774.00 $

TotalReceivables

2,006.004,774.008,389.00

15,169.00Less allowance for

uncollectible accountsReceivables, net

Amounts not scheduledfor collection during the

subsequent year

S 2,006.00 $

$

8,389.00 $ 4,774.00 $ 15,169.00

S

V. DISAGGREGAT1ON OF PAYABLE BALANCES N/A

Payables at June 30,2005, were as follows:

Activity VendorsProfessional Services $TravelOffice ExpensesHealth & Life Benefits

Total payables $

22,787 $576

2.700

26,063

Salariesand

BenefitsAccruedInterest

OtherPayables

TotalPayables

9.768

9,768 $ - $

22,787576

2,7009,768

35,831

W. SUBSEQUENT EVENTS N/A

[Disclose any material event(s) affecting the (BTA) occurring between the close of the fiscal period andissuance of the financial statement.]

X. SEGMENT INFORMATION N/A

Governments that report enterprise funds or that use enterprise fund accounting and reporting standardsto report their activities are required to present segment information for those activities in the notes to thefinancial statements. For the purposes of this disclosure, a segment is an identifiable activity (or group ofactivities), reported as or within an enterprise fund or an other stand-alone entity that has one or morebonds or other debt instruments outstanding, with a revenue stream pledged in support of that debt. Inaddition, the activity's revenues, expenses, gains and losses, assets, and liabilities are required to beaccounted for separately. This requirement for separate accounting applies if imposed by an external

20


party, such as accounting and reporting requirements set forth in bond indentures. Disclosurerequirements for each segment should be met by identifying the types of goods and services provided andby presenting condensed financial statements in the notes, including the elements in A through C below(GASB 34, paragraph 122. as modified by GASB 37, paragraph 17.)

Type of goods or services provided by the segment .

A. Condensed Balance Sheet:(1) Total assets - distinguishing between current assets, capital assets, and other assets. Amounts

receivable from other funds or BTA's should be reported separately.(2) Total liabilities - distinguishing between current and long-term amounts. Amounts payable to

other funds or BTA's should be reported separately.(3) Total net assets - distinguishing among restricted; unrestricted; and amounts invested in capital

assets, net of related debt.

Condensed Balance Sheet:

Segment #1 Segment #2

Current assets

Due from other fundsCapital assets

Other assetsCurrent liabilities

Due to other fundsLong-term liabilitiesRestricted net assets

Unrestricted net assetsInvested In capital assets, net of related

debt

B. Condensed statement of revenues, expenses, and changes in net assets:(1) Operating revenues (by major source).(2) Operating expenses. Depreciation (including any amortization) should be identified separately.(3) Operating income (loss).(4) Nonoperating revenues (expenses) - with separate reporting of major revenues and expenses.(5) Capital contributions and additions to permanent and term endowments.(6) Special and extraordinary items.(7) Transfers(8) Change in net assets.(9) Beginning net assets.

(10) Ending net assets.

Condensed Statement of Revenues, Expenses, and Changes in Net Assets:

21



Operating revenuesOperating expensesDepreciation and amortizationOperating income (loss)Nonoperating revenues (expenses)Capital contributions/additions to

permanent and term endowmentsSpecial and extraordinary itemsTransfers inTransfers outChange in net assetsBeginning net assetsEnding net assets

C. Condensed statement of cash flows:(1) Net cash provided (used) by:

(a) Operating activities(b) Noncapital financing activities(c) Capita! and related financing activities(d) Investing activities

(2) Beginning cash and cash equivalent balances(3) Ending cash and cash equivalent balances

Condensed Statement of Cash Flows:


Net cash provided (used) by operating activities $ _ $Net cash provided (used) by noncapital

financing activitiesNet cash provided (used) by capital and related

financing activitiesNet cash provided (used) by investing activitiesBeginning cash and cash equivalent balancesEnding cash and cash equivalent balances -

Y. DUE TO/DUE FROM AND TRANSFERS N/A

1. List by fund type the amounts due from other funds detailed by individual fund at your fiscal year end:

Type of Fund Name of Fund Amount

Total due from other funds

22


2. List by fund type the amounts due to other funds detailed by individual fund at fiscal year end;

Tvoe of Fund Name of Fund

Total due to other funds

3. List by fund type all transfers from other funds for the fiscal year:


Total transfers from other funds

4. List by fund type all transfers to other funds for the fiscal year:


Total transfers to other funds

Amount

Amount

Amount

Z. LIABILITIES PAYABLE FROM RESTRICTED ASSETS N/A

Liabilities payable from restricted assets in the (BTA) atreflected at $ in the current liabilities section on Statement A, consist of $

.{fiscal year end),

in accounts payable, $_ in notes payable, and $_ in

.(BTA) at_ .(fiscal year end),Liabilities payable from restricted assets in thereflected at $ in the non-current liabilities section on Statement A, consist of$ jn accounts payable, $_ in notes payable, and S.

AA. PRIOR-YEAR RESTATEMENT OF NET ASSETS N/A

The following adjustments were made to restate beginning net assets for June 30,20 .

Ending Net AssetsJuly 1,2004,

previousIv reportedAdjustments

+ orM

Beginning netassets, July 1, 2004,

As restated

in

Each adjustment must be explained in detail on a separate sheet.

23

STATE OF LOUISIANALOUISIANA STATE BOARD OF NURSING

SCHEDULE OF PER DIEM PAID TO BOARD MEMBERSFor the Year Ended June 30,2005

Name

TOMMIE JEAN ASHBY

PATSY BOURGEOIS

ELISE CRAPAZANO

DEBORAH FORD

JAMES HARPER

PATSY MCCLANAHAN

KAREN MOODY

DEBBIE OLDS

ALAN J. OSTROWE

FRANKIE ROSENTHAL

WILLIAM ST. JOHN LACORTE

Amount

1,425

1.725

1,500

1,650

825

600

2,025

1,350

300

1,800

75

13,275

SCHEDULE 1

STATE OF LOUISIANASTATE BOARD OF NURSING

SCHEDULE OF STATE FUNDINGFor the Year Ended June 30,2005

Description of Funding Amount

1. $

2.

3.

4.

5.

6.

7.

8.

9.

10.

Total

SCHEDULE 2


SCHEDULE OF REIMBURSEMENT CONTRACTS PAYABLEJune 30,2005

IssueDate ofIssue

OriginalIssue

PrincipalOutstanding

6/30/PYRedeemed

(Issued)


6/30/CYInterestRates

InterestOutstanding

6/30/CY

Total

*Send copies of new amortization schedules

SCHEDULE 3-A


SCHEDULE OF NOTES PAYABLEJune 30, 2005

IssueDate ofIssue

OriginalIssue


6/30/PYRedeemed

(Issued)



InterestOutstanding

6/30/CY

Total $ $=

*Send copies of new amortization schedules

SCHEDULE 3-B


SCHEDULE OF BONDS PAYABLEJune 30, 2005

IssueDate ofIssue

OriginalIssue


6/30/PYRedeemed

(Issued)



InterestOutstanding

6/30/CY

Total S $2

'Send copies of new amortization schedules

SCHEDULE 3-C


SCHEDULE OF REIMBURSEMENT CONTRACTS PAYABLE AMORTIZATIONFor The Year Ended June 30,2005

Fiscal YearEnding: Principal Interest

20062007200820092010

2011201220132014201520162017

2018

2019

20202021

2022

2023

2024

2025

2026

2027

20282029

2030

Total

SCHEDULE 4-A


SCHEDULE OF CAPITAL LEASE AMORTIZATIONFor The Year Ended June 30, 2005

Fiscal YearEnding: Payment Interest Principal Balance

2006

2007

2008

2009

2010

2011-2015

2016-2020

2021-2025

2026-2030

Total

SCHEDULERS

STATE OF LOUISIANABOARD OF NURSING

SCHEDULE OF NOTES PAYABLE AMORTIZATIONFor The Year Ended June 30, 2005

Fiscal YearEnding: Principal

2006

2007

2008

2009

2010

2011-2015

2016-2020

2021-2025

2026-2030

Total

SCHEDULE 4-C

STATE OF LOUISIANABOARD OF NURSING

SCHEDULE OF BONDS PAYABLE AMORTIZATIONFor The Year Ended June 30,2005

Fiscal YearEnding: Principal

2006

2007

2008

2009

20102011201220132014201520162017201820192020

20212022

2023

2024

2025

2026

2027

2028

2029

2030

Total

SCHEDULE 4-D

Schedule 5

STATE OF LOUISIANA

LOUISIANA STATE BOARD OF NURSING

COMPARISON FIGURES

To assist OSRAP in determining the reason for the change in financial position for the State, pleasecomplete the schedule below. If the change is greater than $1 million, explain the reason for thechange.

1) Revenues

Expenses

2) Capital assets

Long-term debt

Net Assets

Explanation for change:

2QQ5

3,018,447 $

3,056,449

25,736

175,196

2,733,313

2004

2,757,977

2,917,738

19,134

175,308

2,771,315

Difference

$ 260,470

138,711

6,602

(112)

(38,002)

PercentageChange

9.44%

4,75%

34.50%

(0.23)%

(1 .38)%

SCHEDULE 5

Documents

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