1. Transmittal Letter
      2. Table of Contents
      3. Executive Summary
      4. Audit Reports
      5. Summary of Auditor's Results
      6. Financial Statement Findings
      7. Federal Award Findings
      8. Unresolved Prior Audit Findings
      9. Schedule of Expenditures of Federal Awards
      10. Notes to the Schedule
      11. Management's Corrective Action Plans
      12. Index of Findings
      13. Summary Schedule of Prior Federal Audit Findings
      14. Acknowledgments

 
STATE OF LOUISIANA
 
 
 
 
 
SINGLE AUDIT REPORT
FOR THE YEAR ENDED JUNE 30, 2004
STATE OF LOUISIANA
 
 
 
 
STEVE J. THERIOT, CPA
LEGISLATIVE AUDITOR

State of Louisiana
 
Single Audit Report
For the Year Ended June 30, 2004
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This document is produced by the Legislative Auditor, State of Louisiana, Post Office Box
94397, Baton Rouge, Louisiana 70804-9397 in accordance with Louisiana Revised
Statute 24:513. One hundred fifty-five copies of this public document were produced at
an approximate cost of $2,484.01. This material was produced in accordance with the
standards for state agencies established pursuant to R.S. 43:31. A copy of this
document is available on the Legislative Auditor’s Web site at www.lla.state.la.us. When
contacting the office, you may refer to Agency ID No. 5002 or Report ID No. 04801973
for additional information.
 
 
In compliance with the Americans With Disabilities Act, if you need special assistance
relative to this document, or any documents of the Legislative Auditor, please contact
Wayne “Skip” Irwin, Director of Administration, at 225/339-3800.

STATE OF LOUISIANA
 
Single Audit Report
For the Year Ended June 30, 2004
 
 
 
The Auditor's Report on the State of Louisiana's Basic Financial Statements dated December 16, 2004,
has been issued under separate cover.
 
 
 
Under the provisions of state law, this report is a public document. A copy of this report has been
submitted to the Governor, to the Attorney General, and to other public officials as required by state law.
A copy of this report has been made available for public inspection at the Baton Rouge and New Orleans
offices of the Legislative Auditor. Copies of this report are also being submitted to the federal audit
clearinghouse. The clearinghouse will retain an archival copy of the report and also distribute a copy of
the report to each federal awarding agency that provided federal financial assistance to the State of
Louisiana for which audit findings were disclosed in the schedules of findings and questioned costs or the
summary schedule of prior federal audit findings. The report will be distributed to any pass-through
entities that provided federal financial assistance to the state for which audit findings were disclosed in
the schedules of findings and questioned costs or the summary schedule of prior federal audit findings.
The report is also being transmitted to the Office of Inspector General of the United States Department of
Health and Human Services, which is the cognizant federal agency for the Single Audit of the State of
Louisiana.
 
 
 
March 31, 2005
 
 
 

 
OFFICE OF
L
EGISLATIVE
A
UDITOR
STATE OF LOUISIANA
BATON ROUGE, LOUISIANA 70804-9397
 
 
 
1600 NORTH THIRD STREET
POST OFFICE BOX 94397
TELEPHONE: (225) 339-3800
FACSIMILE: (225) 339-3870
STEVE J. THERIOT, CPA
LEGISLATIVE AUDITOR
March 8, 2005
 
 
 
 
To the Governor, Members of the Legislature, and Taxpayers of Louisiana
 
The Legislative Auditor audits the activities of state departments, agencies, universities, and
other organizational units to ensure accountability and to review compliance with certain laws
and regulations relating to financial matters. The audit scope encompasses both state and
federal funds. The State of Louisiana Single Audit Report, along with the June 30, 2004,
Comprehensive Annual Financial Report,
provides an overview of the financial operations of
Louisiana state government.
 
This year, we issued an unqualified opinion on the state’s June 30, 2004, basic financial
statements. Significant changes in financial reporting were required in fiscal year 2004 as a
result of the implementation of Statements 39 and 40 and Technical Bulletin 2004-1 of the
Governmental Accounting Standards Board.
 
The 2004 Single Audit Report includes a report on the Schedule of Expenditures of Federal
Awards, along with reports on compliance with laws and regulations and internal control over
financial reporting and federal programs for the State of Louisiana. State entities resolved 70%
of the findings included in the 2003 Single Audit Report. This year’s report contains 41 matters
that require the attention of state government, including questioned costs in federal programs of
approximately $1.6 million, which is similar to the amount we reported in 2003. The respective
federal grantors will ultimately determine the resolution of the questioned costs.
 
The Executive Summary highlights a statewide issue that is a major concern, as well as issues
that are material to the state’s financial operations. We continue to stress our concern with the
lack of a disaster recovery/business continuity plan at the two major revenue collection agencies
of the state.
 
We are pleased with the attention that state entities have directed toward resolving issues we
present in our Single Audit Report. As noted in the various charts in the Executive Summary,
while federal awards continue to grow each year, there has been a significant decrease in the
number of findings included in the report and an emphasis by state entities to resolve prior year
findings.
 
Sincerely,
 
 
 
 
Steve J. Theriot, CPA
Legislative Auditor
 
SJT\dl

 
vii
 
STATE OF LOUISIANA
 
SINGLE AUDIT REPORT
For the Fiscal Year Ended June 30, 2004
 
 
CONTENTS
  
Page No.
 
Executive Summary ix
 
Audit Reports:
 
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance
With
Government Auditing Standards
  
1
 
Report on Compliance With Requirements Applicable
to Each Major Program and on Internal Control Over
Compliance in Accordance With OMB Circular A-133 5
 
Schedule Page No.
 
Schedules of Findings and Questioned Costs:
 
Summary of Auditor’s Results A 9
 
Financial Statement Findings B 11
 
Federal Award Findings and Questioned Costs C 29
 
Schedule of Unresolved Prior Audit Findings D 67
 
Appendix
 
Schedule of Expenditures of Federal Awards and
Notes to the Schedule of Expenditures of Federal
Awards A
 
Management's Corrective Action Plans and
Responses to the Findings and Recommendations B
 
Findings and Recommendations, Index by State Agency C
 
Summary Schedule of Prior Federal Audit Findings D
 
Acknowledgments
 

 
 
Executive Summary
 

Louisiana _________________________________________________
 
Single Audit Report
 
EXECUTIVE SUMMARY
 
For the Fiscal Year Ended June 30, 2004
 
ix
 
Introduction
 
The Single Audit Report for the fiscal year ended June 30, 2004, contains the Schedule of
Expenditures of Federal Awards along with the auditor’s report thereon. Also included are the
auditor’s reports on internal control and compliance and other matters related to the financial
statements and internal control and compliance related to major federal award programs.
These audit reports are supported by the schedules of findings and questioned costs in the
accompanying report.
 
The single audit, as performed by the Legislative Auditor and other auditors, meets the require-
ments of the Single Audit Act as amended in 1996, and the associated U.S. Office of
Management and Budget (OMB) Circular A-133.
 
The single audit includes various departments, agencies, universities, and other organizational
units included in the
Comprehensive Annual Financial Report
of the State of Louisiana using the
criteria established by Governmental Accounting Standards Board Statement 14, “The Financial
Reporting Entity.”
 
 
 
 
Findings and Questioned Costs
 
As a result of auditing Louisiana’s basic financial statements and Schedule of Expenditures of
Federal Awards, we noted certain deficiencies concerning internal control and compliance with
laws and regulations. These deficiencies are presented in the schedules of findings and
questioned costs as described in the Table of Contents of the accompanying report.
 
A total of 41 findings were reported within this year’s Single Audit Report. This total includes 16
findings (39%) that were repeat findings from a prior audit.
 
The 2004 Single Audit Report discloses questioned costs of $1,597,465, which are detailed
within the findings that are presented in the Schedule of Federal Award Findings and
Questioned Costs
 
(Schedule C) of the accompanying report. The resolution of these
questioned costs will be determined by the respective grantors.
 
The following pages contain graphical descriptions of the trend of total findings over the past
five years, the number of repeat findings as compared to new findings for this fiscal year, and
the state’s reported questioned costs over the past five years.
 
 
 
 
 
 
 

Louisiana _________________________________________________
 
Single Audit Report
 
EXECUTIVE SUMMARY
 
For the Fiscal Year Ended June 30, 2004
 
x
 
Trend of Findings
Over the Past Five Years
 
Findings
0
25
50
75
100
125
2000 2001 2002 2003 2004
Fiscal Year
 
 
 
Fiscal Year 2004
 
Comparison of Repeat Findings
to New Findings
 
25
16
New Audit Findings
Repeat Audit Findings
 
 

Louisiana _________________________________________________
 
Single Audit Report
 
EXECUTIVE SUMMARY
 
For the Fiscal Year Ended June 30, 2004
 
xi
Trend of Questioned Costs
Over the Past Five Years
 
 
2000
2001
2002
2003
2004
$0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000
 
 
 
 
 
Statewide Area of Concern
 
One finding was reported in the 2004 Single Audit Report that warrants statewide concern and
was reported as a statewide finding. The finding, “Deficiencies in State’s Disaster Recovery
Plans - Statewide,” represents a material weakness in internal control over financial reporting.
For a finding to be considered a statewide finding, it has one or more of the following
characteristics:
 
1. It exists at numerous departments throughout the state.
2. It arises from current statewide policies that do not satisfactorily address the state's
needs.
3. It could have a significant fiscal impact on either the state as a whole or on a segment of
the state.

Louisiana _________________________________________________
 
Single Audit Report
 
EXECUTIVE SUMMARY
 
For the Fiscal Year Ended June 30, 2004
 
xii
Material Weakness
 
 
 
The State of Louisiana did not have adequate disaster recovery/contingency plans for three
state agencies, two universities, two levee districts, and one state board. Formal disaster
recovery/contingency plans should exist for the timely restoration and continuity of critical entity
operations in the event that normal data processing facilities are unavailable for an extended
period of time. Failure to implement formal disaster recovery/contingency plans increases the
risk that, in the event of a disaster, there will be an untimely or excessive delay in processing
critical data and that critical data including public records may be lost. This could have a
significant impact on financial accountability and could impair the state’s ability to collect
revenues, provide services, or perform other critical business functions. See Schedule B, page
13.
 
 
Other Material Weaknesses in Internal Control
Over Financial Reporting
 
Along with “Deficiencies in State’s Disaster Recovery Plans - Statewide,” two other findings
were considered material weaknesses in internal control over financial reporting.
 
 
For the third consecutive year, the Department of Revenue did not submit an accurate and
complete Annual Fiscal Report (AFR) to the Division of Administration (DOA) by the prescribed
due date. The department’s AFR that was submitted on the due date of August 30, 2004, and
revised and resubmitted on October 26, 2004, included material errors and omissions in
financial account balances and note disclosures. Management has not placed sufficient
emphasis on ensuring that the AFR is properly prepared and reviewed for errors or omissions
and ensuring that system-generated reports used for preparing the AFR are complete and
accurate. Failure to submit an accurate and timely AFR to the DOA could cause errors or delays
in the compilation and issuance of the state’s Comprehensive Annual Financial Report. See
Schedule B, page 21.
 
 
 
 
 
 
 
 
FS-04-DOR-1 - Annual Fiscal Report Not Properly Prepared
FS-04-SW-EXEC-1 - Deficiencies in State’s Disaster Recovery Plans - Statewide

Louisiana _________________________________________________
 
Single Audit Report
 
EXECUTIVE SUMMARY
 
For the Fiscal Year Ended June 30, 2004
 
xiii
 
For the second consecutive year, the Department of Revenue did not have sufficient internal
control over the tax accounting system (GenTax) functions, which could affect the integrity of
processing, financial data, and financial reporting. During a review of the system, auditors
noted several control deficiencies, including the lack of formal written policies and procedures to
control changes made to the GenTax System, inadequate documentation of the GenTax
System, and insufficient controls over a GenTax suspense account. The department is
implementing the GenTax System in phases over a three-year period and has not placed
sufficient emphasis on documentation and controls. During the fiscal year ended
June 30, 2004, GenTax processed over $2 billion of tax collections and other transactions. See
Schedule B, page 24.
 
 
 
FS-04-DOR-3 - Weaknesses in the GenTax System

Louisiana _________________________________________________
 
Single Audit Report
 
EXECUTIVE SUMMARY
 
For the Fiscal Year Ended June 30, 2004
 
xiv
Expenditures of Federal Awards
 
In addition to auditing the state’s financial statements, we examined expenditures of major
federal award programs administered by the State of Louisiana reporting entity. For fiscal year
ended June 30, 2004, the State of Louisiana reported over $10.2 billion in monetary and non-
monetary activity (including loan programs) for the federal award programs administered by the
state.
 
Major federal award programs within the State of Louisiana were identified on a statewide basis
in accordance with the criteria established by OMB Circular A-133 and the Single Audit Act as
amended in 1996. Major federal award programs for the year ended June 30, 2004, as defined
by the criteria mentioned above, accounted for approximately 83% of the state’s expenditures
(activity) of federal award programs for the year ended June 30, 2004.
 
The following graphs illustrate total expenditures of federal awards disbursed by the state.
Illustrations include the trend of expenditures (excluding loan programs) over the past five
years, total major versus other programs, major versus other programs by federal agency, and
the percentage of total federal awards by federal agency.
 
Trend of Expenditures of Federal Awards
Over the Past Five Years
 
 
Fiscal Year 2004 Total Expenditures of Federal Awards
(Appendix A)
 
$8,146,778,357
(excluding loan programs)
 
 
 
 
$0
$1
$2
$3
$4
$5
$6
$7
$8
Billions
of
Dollars
2000 2001 2002 2003 2004
Fiscal Year

Louisiana _________________________________________________
 
Single Audit Report
 
EXECUTIVE SUMMARY
 
For the Fiscal Year Ended June 30, 2004
 
xv
Fiscal Year 2004
Activity of Major vs. Other Programs
(including loan programs)
 
Other
Programs
17%
Major
Programs
83%
 
 
 
 
Fiscal Year 2004
Activity of Major vs. Other Programs
by Federal Agency
$10,238,312,291
(including loan programs)
 
 
 
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5
Billions of Dollars
Other
HUD
EPA
Defense
Justice
Treasury
Labor
Transportation
Education
Agriculture
HHS
Other
Major
Federal
Agency

Louisiana _________________________________________________
 
Single Audit Report
 
EXECUTIVE SUMMARY
 
For the Fiscal Year Ended June 30, 2004
 
xvi
 
 
Percentage of Total Expenditures of Federal Awards
by Federal Agency
(including loan programs)
 
45%
12%
29%
5%
4%
1%
4%
HHS
Agriculture
Education
Transportation
Labor
Treasury
Other
 
 
 
 

 
Audit Reports
 

OFFICE OF
L
EGISLATIVE
A
UDITOR
STATE OF LOUISIANA
BATON ROUGE, LOUISIANA 70804-9397
 
 
 
1
 
1600 NORTH THIRD STREET
POST OFFICE BOX 94397
TELEPHONE: (225) 339-3800
FACSIMILE: (225) 339-3870
STEVE J. THERIOT, CPA
LEGISLATIVE AUDITOR
December 16, 2004
 
 
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance With
Government Auditing Standards
 
 
 
 
HONORABLE KATHLEEN BABINEAUX BLANCO, GOVERNOR
HONORABLE DONALD E. HINES, PRESIDENT, AND
MEMBERS OF THE SENATE
HONORABLE JOE R. SALTER, SPEAKER, AND
MEMBERS OF THE HOUSE OF REPRESENTATIVES
STATE OF LOUISIANA
Baton Rouge, Louisiana
 
We have audited the financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the State of Louisiana, as of and for the year ended
June 30, 2004, which collectively comprise the state’s basic financial statements and have
issued our report thereon dated December 16, 2004. We did not audit the financial statements
of certain pension trust funds, enterprise funds, and component units of government included
within the basic financial statements of the State of Louisiana. Those financial statements were
audited by other auditors whose reports have been furnished to us. This report, insofar as it
relates to those pension trust funds, enterprise funds, and component units, is based solely
upon the reports of the other auditors.
 
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in
Government
Auditing Standards
, issued by the Comptroller General of the United States. The financial
statements of the LSU Foundation and the Pennington Medical Foundation, both component
units of the Louisiana State University System (major component unit); the University of
Louisiana at Monroe Foundation and the McNeese State University Foundation, both
component units of the University of Louisiana System (major component unit); and the
Southern University System Foundation, a component unit of the Southern University System
(major component unit) were not audited in accordance with
Government Auditing Standards
.
 
 

LEGISLATIVE AUDITOR
 
 
HONORABLE KATHLEEN BABINEAUX BLANCO, GOVERNOR
HONORABLE DONALD E. HINES, PRESIDENT, AND
MEMBERS OF THE SENATE
HONORABLE JOE R. SALTER, SPEAKER, AND
MEMBERS OF THE HOUSE OF REPRESENTATIVES
STATE OF LOUISIANA
December 16, 2004
Page Two
 
 
 
2
 
Internal Control Over Financial Reporting
 
In planning and performing our audit, we considered the State of Louisiana’s internal control
over financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinions on the financial statements and not to provide an opinion on the internal
control over financial reporting. However, we noted certain matters involving the internal control
over financial reporting and its operation that we consider to be reportable conditions.
Reportable conditions involve matters coming to our attention relating to significant deficiencies
in the design or operation of the internal control over financial reporting that, in our judgment,
could adversely affect the State of Louisiana’s ability to record, process, summarize, and report
financial data consistent with the assertions of management in the financial statements.
Reportable conditions are described in Schedule B (pages 11 through 28) and Schedule C
(pages 29 through 65) of the accompanying schedules of findings and questioned costs.
 
A material weakness is a reportable condition in which the design or operation of one or more of
the internal control components does not reduce to a relatively low level the risk that
misstatements caused by error or fraud in amounts that would be material in relation to the
financial statements being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. Our consideration of
the internal control over financial reporting would not necessarily disclose all matters in the
internal control that might be reportable conditions and, accordingly, would not necessarily
disclose all reportable conditions that are also considered to be material weaknesses.
However, of the reportable conditions described previously, we consider items FS-04-SW-
EXEC-1 (page 13), FS-04-DOR-1 (page 21), and FS-04-DOR-3 (page 24) to be material
weaknesses.
 
Compliance and Other Matters
 
As part of obtaining reasonable assurance about whether the State of Louisiana’s basic
financial statements are free of material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance
with which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and, accordingly, we do not express such an opinion. The results of our
tests disclosed instances of noncompliance or other matters that are required to be reported
under
Government Auditing Standards
and which are described in Schedule B (pages 11
through 28) and Schedule C (pages 29 through 65) of the accompanying schedules of findings
and questioned costs.

LEGISLATIVE AUDITOR
 
 
HONORABLE KATHLEEN BABINEAUX BLANCO, GOVERNOR
HONORABLE DONALD E. HINES, PRESIDENT, AND
MEMBERS OF THE SENATE
HONORABLE JOE R. SALTER, SPEAKER, AND
MEMBERS OF THE HOUSE OF REPRESENTATIVES
STATE OF LOUISIANA
December 16, 2004
Page Three
 
 
 
3
 
We also noted certain additional matters which we have reported in separate letters to
management of the State of Louisiana that are not required to be reported herein under
Government Auditing Standards
.
 
In connection with our audit, we reviewed prior audit findings on internal control over financial
reporting and compliance to determine whether management had implemented appropriate
action to correct the conditions giving rise to those findings. The results of our review indicate
that management had taken appropriate corrective action with respect to prior audit findings,
except for the matters described in the Schedule of Unresolved Prior Audit Findings (Schedule
D, page 67), which have been addressed in our current report.
 
This report is intended solely for the information and use of the Governor and certain other
statewide elected officials of the State of Louisiana and their appointees (management) and is
not intended to be and should not be used by anyone other than these specified parties. Under
Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public
document.
 
Respectfully submitted,
 
 
 
Steve J. Theriot, CPA
Legislative Auditor
 
MVG:JMR:THC:dl
 
[AUDITREPORTS]

 
4
 
This page is intentionally blank.

OFFICE OF
L
EGISLATIVE
A
UDITOR
STATE OF LOUISIANA
BATON ROUGE, LOUISIANA 70804-9397
 
 
 
5
 
1600 NORTH THIRD STREET
POST OFFICE BOX 94397
TELEPHONE: (225) 339-3800
FACSIMILE: (225) 339-3870
STEVE J. THERIOT, CPA
LEGISLATIVE AUDITOR
March 8, 2005, except for the
Schedule of Expenditures of Federal Awards,
dated December 16, 2004
 
 
Report on Compliance With Requirements Applicable to Each
Major Program and on Internal Control Over Compliance in
Accordance With OMB Circular A-133
 
 
 
HONORABLE KATHLEEN BABINEAUX BLANCO, GOVERNOR
HONORABLE DONALD E. HINES, PRESIDENT, AND
MEMBERS OF THE SENATE
HONORABLE JOE R. SALTER, SPEAKER, AND
MEMBERS OF THE HOUSE OF REPRESENTATIVES
STATE OF LOUISIANA
Baton Rouge, Louisiana
 
Compliance
 
We have audited the compliance of the State of Louisiana with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB)
Circular A-133
Compliance Supplement
that are applicable to each of its major federal programs for the year
ended June 30, 2004. The State of Louisiana’s major federal programs are identified in the
Summary of Auditor’s Results section (Schedule A, page 9) of the accompanying schedules of
findings and questioned costs. Compliance with the requirements of laws, regulations,
contracts, and grants applicable to each of its major federal programs is the responsibility of the
Governor and other statewide elected officials of the State of Louisiana and their appointees
(management). Our responsibility is to express an opinion on the State of Louisiana’s
compliance based on our audit. We did not audit compliance with those requirements by
Grambling State University and the Southern University System. Compliance with the
requirements by those universities was tested by other auditors whose reports have been
furnished to us. Our report, insofar as it relates to compliance with the requirements referred to
previously by Grambling State University and the Southern University System, is based solely
upon the reports of the other auditors.
 
The State of Louisiana’s basic financial statements include the operations of certain entities that
were audited by other external auditors as described in note Q of Appendix A (page A-159).
During the year ended June 30, 2004, five of these entities expended a total of $121,712,658 in
federal awards, which is not included in the accompanying Schedule of Expenditures of Federal
Awards. Our audit did not include the operations of these five entities because these
component units engaged other auditors to perform an audit in accordance with OMB Circular
A-133.

LEGISLATIVE AUDITOR
 
 
HONORABLE KATHLEEN BABINEAUX BLANCO, GOVERNOR
HONORABLE DONALD E. HINES, PRESIDENT, AND
MEMBERS OF THE SENATE
HONORABLE JOE R. SALTER, SPEAKER, AND
MEMBERS OF THE HOUSE OF REPRESENTATIVES
STATE OF LOUISIANA
March 8, 2005, except for the Schedule of
Expenditures of Federal Awards, dated
December 16, 2004
Page Two
 
 
 
6
 
We conducted our audit of compliance in accordance with auditing standards generally
accepted in the United States of America; the standards applicable to financial audits contained
in
Government Auditing Standards
, issued by the Comptroller General of the United States; and
OMB Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations
.
Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to previously that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about the State of Louisiana’s
compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our
opinion. Our audit does not provide a legal determination of the State of Louisiana’s compliance
with those requirements.
 
In our opinion, based on our audit and the reports of the other auditors, the State of Louisiana
complied, in all material respects, with the requirements referred to previously that are
applicable to each of its major federal programs for the year ended June 30, 2004. However,
the results of our auditing procedures and the reports of the other auditors disclosed instances
of noncompliance with those requirements, which are required to be reported in accordance
with OMB Circular A-133 and which are described in Schedule C (pages 29 through 65) of the
accompanying schedules of findings and questioned costs.
 
Internal Control Over Compliance
 
The Governor and other statewide elected officials of the State of Louisiana and their
appointees (management) are responsible for establishing and maintaining effective internal
control over compliance with the requirements of laws, regulations, contracts, and grants
applicable to federal programs. In planning and performing our audit, we considered the State
of Louisiana’s internal control over compliance with requirements that could have a direct and
material effect on a major federal program in order to determine our auditing procedures for the
purpose of expressing our opinion on compliance and to test and report on the internal control
over compliance in accordance with OMB Circular A-133. We did not consider the internal
control over compliance with the requirements of the federal award programs administered by
Grambling State University and the Southern University System. The internal control over
federal program requirements for these universities was considered by other auditors whose
reports have been furnished to us. Our report, insofar as it relates to the internal control used in
administering federal award programs of these universities, is based solely upon the reports of
the other auditors.

LEGISLATIVE AUDITOR
 
 
HONORABLE KATHLEEN BABINEAUX BLANCO, GOVERNOR
HONORABLE DONALD E. HINES, PRESIDENT, AND
MEMBERS OF THE SENATE
HONORABLE JOE R. SALTER, SPEAKER, AND
MEMBERS OF THE HOUSE OF REPRESENTATIVES
STATE OF LOUISIANA
March 8, 2005, except for the Schedule of
Expenditures of Federal Awards, dated
December 16, 2004
Page Three
 
 
 
7
 
We noted certain matters involving the internal control over compliance and its operation that
we consider to be reportable conditions. Reportable conditions involve matters coming to our
attention relating to significant deficiencies in the design or operation of the internal control over
compliance that, in our judgment, could adversely affect the State of Louisiana’s ability to
administer a major federal program in accordance with the applicable requirements of laws,
regulations, contracts, and grants. Reportable conditions are described in Schedule C (pages
29 through 65) of the accompanying schedules of findings and questioned costs.
 
A material weakness is a reportable condition in which the design or operation of one or more of
the internal control components does not reduce to a relatively low level the risk that
noncompliance with the applicable requirements of laws, regulations, contracts, and grants
caused by error or fraud that would be material in relation to a major federal program being
audited may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. Our consideration of the internal control over
compliance would not necessarily disclose all matters in the internal control that might be
reportable conditions and, accordingly, would not necessarily disclose all reportable conditions
that are also considered to be material weaknesses. However, we believe that none of the
reportable conditions described previously is a material weakness.
 
Schedule of Expenditures of Federal Awards
 
We have audited the financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the State of Louisiana as of and for the year ended
June 30, 2004, and have issued our report thereon dated December 16, 2004.
 
Certain portions of the Schedule of Expenditures of Federal Awards (Appendix A) accom-
panying this report were not audited by us but were audited by other auditors whose audit
reports have been furnished to us, including federal award programs administered by Grambling
State University and the Southern University System. The federal award programs for these
universities reflect total activity and the federal government’s risk in their outstanding loan
balances of $172,498,246, which comprise approximately 1.68% of total activity and the federal
government’s risk in outstanding loan balances for the state as of and for the year ended
June 30, 2003. Our assurance, insofar as it relates to the amounts included for Grambling State
University and the Southern University System, is based solely upon the reports of the other
auditors.
 

LEGISLATIVE AUDITOR
 
 
HONORABLE KATHLEEN BABINEAUX BLANCO, GOVERNOR
HONORABLE DONALD E. HINES, PRESIDENT, AND
MEMBERS OF THE SENATE
HONORABLE JOE R. SALTER, SPEAKER, AND
MEMBERS OF THE HOUSE OF REPRESENTATIVES
STATE OF LOUISIANA
March 8, 2005, except for the Schedule of
Expenditures of Federal Awards, dated
December 16, 2004
Page Four
 
 
 
8
 
Our audit was performed for the purpose of forming opinions on the financial statements that
collectively comprise the State of Louisiana’s basic financial statements. The accompanying
Schedule of Expenditures of Federal Awards (Appendix A) is presented for purposes of
additional analysis as required by OMB Circular A-133 and is not a required part of the basic
financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in our opinion, based on our audit and the
reports of the other auditors, is fairly stated in all material respects, in relation to the basic
financial statements taken as a whole.
 
In connection with our audit, we reviewed prior audit findings on compliance and internal control
over compliance to determine whether management had implemented appropriate action to
correct the conditions giving rise to those findings. The results of our review indicate that
management had taken appropriate corrective action with respect to prior audit findings, except
for the matters described in the Schedule of Unresolved Prior Audit Findings (Schedule D, page
67), which have been addressed in our current report.
 
This report is intended solely for the information and use of the Governor and certain other
statewide elected officials of the State of Louisiana and their appointees (management) as well
as federal awarding agencies and pass-through entities and is not intended to be and should
not be used by anyone other than these specified parties. Under Louisiana Revised Statute
24:513, this report is distributed by the Legislative Auditor as a public document.
 
Respectfully submitted,
 
 
 
Steve J. Theriot, CPA
Legislative Auditor
 
MVG:JMR:THC:dl
 
[AUDITREPORTS]
 
 

 
 
Schedule A
 
Summary of Auditor’s Results
For the Year Ended June 30, 2004
 

Schedule A
Financial Statements
Type of auditor's report issued:
Internal control over financial reporting:
Material weakness(es) identified?
X yes no
Reportable condition(s) identified not considered
to be material weaknesses?
X yes none reported
Noncompliance material to financial statements noted?
yes X no
Federal Awards
Type of auditor's report issued on compliance for major programs:
Unqualified for all major programs.
Internal control over major programs:
Material weakness(es) identified?
yes X no
Reportable condition(s) identified not considered
to be material weaknesses?
X yes none reported
Any audit findings disclosed that are required to be
reported in accordance with Section 510(a)
of OMB Circular A-133?
X yes no
(Continued)
LEGISLATIVE AUDITOR
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Summary of Auditor's Results
For the Year Ended June 30, 2004
Unqualified
9

Schedule A
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Summary of Auditor's Results
Federal Awards (Cont.)
Identification of major programs:
CFDA Number - Name of Federal Program or Cluster
10.557 - Special Supplemental Nutrition Program for Women, Infants, and Children
10.558 - Child and Adult Care Food Program
21.unknown - Title 16 - Temporary State Fiscal Relief
66.458 - Capitalization Grants for Clean Water State Revolving Funds
84.002 - Adult Education - State Grant Program
84.010 - Title I Grants to Local Educational Agencies
84.032 - Federal Family Education Loans
84.048 - Vocational Education - Basic Grants to States
84.126 - Rehabilitation Services - Vocational Rehabilitation Grants to States
84.357 - Reading First State Grants
84.367 - Improving Teacher Quality State Grants
93.558 - Temporary Assistance for Needy Families
93.563 - Child Support Enforcement
93.658 - Foster Care - Title IV-E
93.917 - HIV Care Formula Grants
93.994 - Maternal and Child Health Services Block Grant to the States
Aging Cluster
CCDF Cluster
Child Nutrition Cluster
Employment Service Cluster
Food Stamp Cluster
Medicaid Cluster
Research and Development Cluster
Special Education Cluster
Student Financial Assistance Cluster
WIA Cluster
Dollar threshold used to distinguish between
Type A and Type B programs:
Auditee qualified as low-risk auditee?
yes X no
(Concluded)
$23,690,630
LEGISLATIVE AUDITOR
10

 
Schedule B
 
Financial Statement Findings
For the Year Ended June 30, 2004
 

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
 
Financial Statement Findings
Index by State Agency
 
 
Page No.
 
11
 
EXECUTIVE DEPARTMENT
FS-04-SW-EXEC-1 - Deficiencies in State’s Disaster
Recovery Plans - Statewide...............................................................13
FS-04-EXEC-1 - Ineffective Internal Audit Function ..............................................................15
FS-04-CAFR-1 - Ineffective Internal Audit Function -
Office of Inspector General .......................................................................16
FS-04-CAFR-2 - Weaknesses in Information Systems’ Controls...........................................16
 
GROUP BENEFITS, OFFICE OF
FS-04-OGB-1 - Uncollected Health Insurance Premiums .....................................................17
 
LABOR, DEPARTMENT OF
FS-04-LABR-1 - Inaccurate and Incomplete Annual
Fiscal Report .........................................................................................18
 
LOUISIANA COMMUNITY AND TECHNICAL COLLEGE SYSTEM
FS-04-LCTCS-1 - Information Systems Control Weaknesses...............................................20
 
REVENUE, DEPARTMENT OF
FS-04-DOR-1 - Annual Fiscal Report Not Properly Prepared ...............................................21
FS-04-DOR-2 - Information System Control Weaknesses ....................................................23
FS-04-DOR-3 - Weaknesses in the GenTax System ............................................................24
 
RISK MANAGEMENT, OFFICE OF
FS-04-ORM-1 - Unfunded Claims Costs for the
Road Hazard Line of Insurance ...............................................................25
 
TOBACCO SETTLEMENT FINANCING CORPORATION
 
FS-04-TOBCORP-1 - Internal Control Weaknesses
Over Operations...............................................................................26
 
TREASURY - STATE BOND COMMISSION,
DEPARTMENT OF
FS-04-CAFR-3 - Inadequate Control Over Debt Service
Contract Reimbursements ........................................................................28
 

 
12
 
This page is intentionally blank.
 

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
13
 
EXECUTIVE DEPARTMENT
 
FS-04-SW-EXEC-1 - Deficiencies in State’s Disaster
Recovery Plans - Statewide
 
The State of Louisiana did not have adequate disaster recovery/contingency plans at certain
state entities. Formal disaster recovery/contingency plans should exist for the timely restoration
and continuity of critical entity operations in the event that normal data processing facilities are
unavailable for an extended period of time. In addition, Office of Information Technology (OIT)
Policy Number 11 requires state agencies to develop, test, and maintain disaster
recovery/business continuity plans designed to ensure the availability of mission-critical services
and functions in the event of a disaster or unscheduled event that would impact the agency’s
information technology (IT) and telecommunications systems. Louisiana Revised Statute (R.S.)
44:36 also requires that public records shall be preserved and maintained for a period of at least
three years from the date on which the public record was made.
 
An adequate disaster recovery/contingency plan should include at a minimum:
 
 
A written functional plan that will allow for continued operation of critical IT
services in the event of an unexpected interruption
 
Routinely backing up data files, computer programs, and critical documents and
storing this information offsite at a remote facility, which should have the same
operating systems as the agency so that data can be processed and operations
can continue with minimal disruption of services
 
Adequately training staff and other users of the system so they understand their
responsibilities in case of emergencies
 
Providing a schedule for testing the plan to ensure that the plan works as
intended
Our audit of internal control over financial reporting throughout the state disclosed that
deficiencies existed in disaster recovery/contingency plans for the following three state
agencies, two universities, two levee districts, and one state board:
 
1. For the third consecutive year, a review of the Department of Natural Resources’
IT policies disclosed that the department does not have a disaster
recovery/business continuity plan.
2. For the third consecutive year, the Orleans Levee District has not formally
implemented and tested a disaster recovery/contingency plan, including
provisions for an offsite disaster recovery facility. The district has taken steps

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
14
 
toward developing and testing a disaster recovery/business continuity plan;
however, the plan has not been fully developed, implemented, and tested.
3. For the second consecutive year, the Department of Revenue does not have a
written, comprehensive disaster recovery/business continuity plan. Although the
department has taken steps to ensure that its data files and computer programs
are backed up and stored at an offsite facility, current policies and procedures do
not include a written, comprehensive plan relating to disaster recovery/business
continuity.
4. For the second consecutive year, Louisiana State University Health Sciences
Center (LSUHSC) - New Orleans campus does not have a formal disaster
recovery/contingency plan. Although the LSUHSC Office of Computer Services
has addressed issues relating to file backup and offsite storage, current policies
and procedures do not include a comprehensive plan relating to disaster
recovery.
5. For the second consecutive year, the Louisiana Community and Technical
College System (LCTCS) failed to maintain adequate control over the PeopleSoft
information system. One of the general control weaknesses noted over
PeopleSoft was the fact that LCTCS does not have a formal disaster recovery
plan.
6. The Office of Student Financial Assistance (OSFA) does not have a disaster
recovery/business continuity plan with access to an offsite disaster facility.
OSFA maintains in-house computer records for various state scholarship and
grant programs, including the Tuition Opportunity Program for Students and the
Student Assistance and Revenue Trust Program.
7. The East Jefferson Levee District has not formally implemented and tested a
disaster recovery/contingency plan with access to an offsite disaster facility. The
district currently has an emergency operating manual; however, it does not
address the restoration of data processing.
8. The Louisiana State Board of Medical Examiners uses a custom program written
by the Louisiana State University Medical Center (LSUMC) computer department
to process licensing data. The program and data are backed up each night to
offsite storage areas and could be accessed if needed. However, if the LSUMC
system is disabled, the board’s only recourse is to wait until the system is
operational to do the daily work of the board. These delays can cause some
licenses to be issued late and a delay in making financial information available to
management.

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
15
 
Failure to implement formal disaster recovery/contingency plans and obtain adequate offsite
disaster recovery facilities increases the risk that, in the event of a disaster, there will be an
untimely or excessive delay in processing critical data and that critical data including public
records may be lost. This could have a significant impact on financial accountability and could
impair the ability to collect revenues, provide services, or perform other critical business
functions.
 
The State of Louisiana should ensure that all state entities develop and implement
comprehensive disaster recovery/contingency plans that allow critical operations to be
reestablished and data to be restored from a remote location within an acceptable time frame
should a disaster occur. These plans should also be periodically tested and updated as
necessary to ensure that the plans work as intended in emergency situations. Management
concurred in part with the finding and has implemented a plan of corrective action but disagreed
that this should be a finding within the audit of the Division of Administration (DOA).
Management responded that the primary responsibility for development of a business
continuation/disaster recovery plan is and must be the responsibility of the agency. See
management’s response at B-8.
 
Additional Comments:
While the DOA does not feel we should direct this issue to them, we
feel that the DOA should be the lead agency in effecting change relative to the development of
disaster recovery/continuity programs in state government. Funding such programs is costly,
and the state should prioritize applications that are critical to the operations of its citizenry.
Thus, we feel the DOA should work in concert with the Louisiana Legislature to prioritize state
agencies that should implement disaster recovery/continuity programs.
 
FS-04-EXEC-1 - Ineffective Internal Audit Function
 
For the thirteenth consecutive year, the Executive Department does not have an effective
internal audit function to examine, evaluate, and report on its internal controls, including
information systems, and to evaluate compliance with the policies and procedures that comprise
controls. Act 14 of the 2003 Regular Session of the Louisiana Legislature requires agencies
with budgets in excess of $30 million to use existing program resources and the table of
organization to establish an internal auditor position.
 
Considering the size of the department’s reported assets ($627,893,976) and revenues
($583,196,251), an effective internal audit function is important to ensure the department’s
assets are safeguarded and the department’s policies and procedures are uniformly applied.
 
The Executive Department should establish an internal audit function to provide assurance that
assets are safeguarded and to ensure that management’s policies and procedures are applied
in accordance with management’s intentions. Management concurred with the finding and
outlined a plan of corrective action (B-10).

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
16
 
FS-04-CAFR-1 - Ineffective Internal Audit Function -
Office of Inspector General
 
The Inspector General’s (IG) Office did not provide an effective statewide internal audit function
to examine, evaluate, and report on the state’s internal control, including information technology,
and to evaluate its compliance with the policies and procedures of the control system. An
effective internal audit function is needed to ensure that the state’s assets are safeguarded and
that state policies and procedures are uniformly applied.
 
Governor Charles E. Roemer, III established the IG’s Office in fiscal year 1988 to provide an
internal audit function for state agencies and to provide other valuable services to the state
through investigative auditing. However, because of funding limitations, the IG does not have
adequate staffing to perform an effective statewide internal audit function. Currently, only 12
auditors are in the IG’s Office. Without an effective internal audit function, the risk increases
that fraud, errors, and/or noncompliance with policies and procedures may occur within the state
and not be detected or corrected in a timely manner.
 
The IG’s Office should take the necessary steps to establish an effective statewide internal audit
function by either reallocating or increasing available internal audit resources or by pursuing
other alternatives to accomplish this objective. Management concurred in part with the finding
stating that additional internal audit resources are needed in all departments. However,
management stressed that the function of the IG’s office is to initiate, investigate, and report on
abuse, fraud, and malfeasance and stated that this is narrower in scope than the statewide
internal audit function described in this finding. Management is reviewing the scope of the IG’s
office to determine if the model in use should be retained or if another model is more
appropriate. See management’s response at B-11.
 
FS-04-CAFR-2 - Weaknesses in Information Systems’ Controls
 
The DOA does not have adequate internal control to ensure that
 
proper encryption is used,
logical access to the state’s computer systems and data is limited, certain
 
appropriate policies
and procedures are written and implemented, and reviews of the computer systems and data
centers are performed. Proper internal control should be designed to ensure that
 
proper
encryption is used to provide confidentiality and integrity of data and that
 
appropriate logical
access to the state’s information systems and data is granted based on a strict business-need-
only basis while providing for the proper segregation of duties. In addition, policies and
procedures should be timely provided to state agencies on important issues to remain in
compliance with industry best practices; proper settings should be maintained to comply with
OIT standards and policies and to provide reliable data and regular reviews of critical control
procedures within the Information System environment should be performed.
 

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
17
 
For the second consecutive year, the following control weaknesses were noted:
 
 
Proper encryption was not always used.
 
Programmers could execute jobs in the production environment.
 
Policies and procedures were lacking at the statewide level over encryption and
background checks. In addition, OIT’s password policy was not fully
implemented.
 
Internal information system audits were not performed on statewide data centers
and systems.
The DOA did not dedicate the necessary resources or place enough emphasis on establishing
and implementing internal control in these areas regarding the state’s computer systems. The
lack or inadequacy of these internal controls in statewide systems could
 
result in the loss of
state assets; fraud, destruction, and/or sabotage; system downtime or failure; inaccurate data;
noncompliance with certain industry best practices and OIT standards and policies and could
cause ineffective design, implementation, operation, and security of critical system applications
and resources.
 
The DOA should dedicate the necessary resources and place appropriate emphasis on
implementing internal controls to ensure that sensitive data are properly encrypted and logical
access to the state’s computer systems and data is limited. In addition, the DOA should
implement appropriate policies and/or procedures addressing encryption, background checks,
and adherence to password policies. Furthermore, the DOA should ensure that
 
reviews of the
data center and computer systems are performed. Management neither concurred or disagreed
with the finding stating that the general structure of the finding did not allow for a single
response to fully address the numerous issues underlying the finding. However, management
did provide a plan of corrective action (B-12).
 
 
GROUP BENEFITS, OFFICE OF
 
FS-04-OGB-1 - Uncollected Health Insurance Premiums
 
The Office of Group Benefits (OGB) violated Article VII, Section 14(A) of the Louisiana
Constitution by providing health care services to the Franklin and Pointe Coupee Parish school
boards, while not collecting their entire health insurance premiums. Allowing nonpayment of
lawful amounts owed constitutes, in effect, an interest-free loan from OGB to the school boards.
Article VII, Section 14(A) of the Louisiana Constitution states, “Prohibited Uses. Except as
otherwise provided by this constitution, the funds, credit, property, or things of value of the state
or of any political subdivision shall not be loaned, pledged, or donated to or for any person,
association, or corporation, public or private.”

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
18
 
As of August 2, 2004, Franklin and Pointe Coupee Parish school boards owe OGB fiscal year
2004 premiums totaling $493,339 and $636,533, respectively. Health care services have been
provided to Franklin Parish School Board without full payment since December 2003 and to
Pointe Coupee School Board since January 2004. Allowing participants in the state’s health
insurance plan to not pay premiums may eventually jeopardize the solvency of OGB and its
ability to pay claims for other participants.
 
OGB should pursue collection of the amounts owed for health insurance premiums from
Franklin and Pointe Coupee Parish school boards and develop policies to adequately address
similar nonpayment of premiums in the future. Although management did not concur with the
finding noting that discontinuation of health benefits would imperil the health of plan members
and disrupt the education process in the parishes, management provided a corrective action
plan. See management’s response at B-15.
 
Additional Comment:
Although we may be empathetic with the school boards, as well as with
their employees, OGB is not the proper vehicle to remedy the financial problems of the school
boards.
 
 
LABOR, DEPARTMENT OF
 
FS-04-LABR-1 - Inaccurate and Incomplete Annual Fiscal Report
 
For the second consecutive year, the Department of Labor did not submit an accurate and
complete Annual Fiscal Report (AFR) for the Office of Workforce Development to the DOA by
the prescribed due date. R.S. 39:79 authorizes the commissioner of administration to establish
the format for obtaining each agency’s financial information. The Office of Statewide Reporting
and Accounting Policy (OSRAP) designed an AFR to obtain this information and requires a
signed affidavit from each agency that the financial statements present fairly the financial
information of the agency. OSRAP uses the department’s AFR during its compilation of the
state’s annual financial report. The completed AFR was due to OSRAP on August 30, 2004.
Good internal control includes establishing formal written procedures for compiling financial
information included in the AFR and developing an adequate review process to ensure that
financial statements are accurately prepared and timely submitted.
 
The department’s AFR for the Office of Workforce Development (OWD) that was submitted on
August 30, 2004, included the following errors:
 
1. Schedule 6-1 (Schedule of Revenues, Expenditures, and Changes in Fund
Balance - Escrow Fund) overstated the ending balance by $41,260 because of
mathematical errors.

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
19
 
2. Schedule 8 (Schedule of Expenditures of Federal Awards) total disbursements
were understated by $1,811,822. An amended schedule was submitted to
OSRAP on September 10, 2004, or 10 days after the due date.
3. Schedule 8-4 (Schedule of Non-State Agency/University Subrecipients of Major
Federal Programs) and Schedule 8-5 (Schedule of State Agency/University
Subrecipients of all Federal Programs) were not accurate because it included
expenditures for only 11 months.
4. The Deposits with Financial Institutions note was incomplete. The agency did
not include the balance per agency books as required by OSRAP. In addition,
the note excluded the Employment Security Administration Account bank
account balance that belonged to OWD and included a bank account balance
that belonged to the Unemployment Insurance Trust Fund for a difference of
$23,159.
5. The Judgments, Claims, and Similar Contingencies note reported the amount of
disallowed (settlement) costs at $24,342,494 and the amount of claims and
litigation costs incurred during the current year at zero. The correct amounts
were $1,095,296 and $275,074, respectively.
6. The Cooperative Endeavors note reported contracts totaling $78,715,654. Based
on departmental records, the amount reported was overstated by $11,979,462
because it included $1,288,325 for contracts that had ended before June 30,
2004, and $10,691,137 for contracts that started after June 30, 2004.
Management has not placed sufficient emphasis on ensuring that the AFR is properly prepared
and reviewed for errors or omissions. Failure to submit an accurate and timely AFR to OSRAP
could delay the compilation and issuance of the state’s Comprehensive Annual Financial Report
(CAFR) and result in a misstatement of the state’s CAFR.
 
Management should develop procedures to include written instructions and high-level
supervisory review of financial information and note disclosures to detect and correct errors
before submitting information to OSRAP. Management concurred with the finding and outlined
a corrective action plan (B-22).
 

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
20
 
LOUISIANA COMMUNITY AND TECHNICAL
COLLEGE SYSTEM
 
FS-04-LCTCS-1 - Information Systems Control Weaknesses
 
For the second consecutive year, the Louisiana Community and Technical College System
(LCTCS) failed to maintain adequate control over the PeopleSoft information system. Good
internal controls require proper planning and preparation to fully implement and maintain an
information system to ensure the integrity of data entry, data processing, and financial reporting.
In addition, good IT controls require that users are assigned business-need-only access;
physical access to the server room is restricted to those with a valid need; a system-wide
disaster recovery/contingency plan is developed, implemented, and tested; centralized
password rules are implemented and enforced; and a system-wide policy is adopted to clearly
identify and designate IT responsibilities between the system office and its institutions.
 
When PeopleSoft was implemented in July 2002 for four community colleges and the Louisiana
Technical College (LTC), it was intended to have a Student Administration System to be used
for academic advising, admissions and recruitment, financial aid, student financials, and student
records. Two years after implementation, the Student system is operational in only one
community college. Other community colleges and the LTC rely on side systems to record and
track student data/tuition. These side systems do not interface with PeopleSoft, which
increases the risk of errors and misappropriation of assets.
 
For the second consecutive year, payroll is processed through a human resources module that
does not have adequate system edits. It allows employees to earn negative leave balances
rather than preventing the input of leave if a negative balance will result, and the PeopleSoft
system continues to allow the accrual of leave for employees on leave without pay.
 
For the second consecutive year, LCTCS had the following general control weaknesses over
PeopleSoft:
 
 
Logical access was not assigned/restricted based on business-need only. As a
result, unauthorized access or modification of information in the accounting
system could occur.
 
Physical access to the server room at the system office is not restricted to only
those personnel whose jobs require such access.
 
LCTCS does not have a formal disaster recovery plan.
 
No centralized password rules are being enforced, such as minimum character
length and set expiration dates.

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
21
 
In addition to these weaknesses, LCTCS management failed to design and implement a
system-wide policy delineating institution and system office IT responsibilities. These
responsibilities should be clearly defined and communicated through a formally adopted policy.
 
LCTCS did not dedicate the necessary resources or place sufficient emphasis on implementing
and maintaining PeopleSoft to ensure that the system is functioning efficiently and effectively
and that adequate resources are available to support user needs. Failure to adequately
maintain PeopleSoft could result in inaccurate data and could place the state at risk for
noncompliance with certain federal and state laws and regulations.
 
LCTCS management should dedicate the necessary resources and place sufficient emphasis
on information system activities to ensure the integrity of data entry, data processing, and
financial reporting. Management should ensure that users are assigned business-need-only
access and that access is monitored on a regular basis; physical access to the server room is
appropriately restricted; a system-wide disaster recovery/contingency plan is developed,
implemented, and tested; centralized password rules are implemented and enforced; and a
system-wide policy is adopted to clearly identify and designate IT responsibilities between the
system office and its institutions. Management concurred with the finding and recommendation
and outlined a plan of corrective action (B-27).
 
 
REVENUE, DEPARTMENT OF
 
FS-04-DOR-1 - Annual Fiscal Report Not Properly Prepared
 
For the third consecutive year, the Department of Revenue did not submit an accurate and
complete AFR to the DOA by the prescribed due date. R.S. 39:79 authorizes the commissioner
of administration to establish the format for reporting each agency’s financial information.
OSRAP designed an AFR to obtain this information and requires a signed affidavit from each
agency that the financial statements present fairly the financial information of the agency.
OSRAP uses the department’s AFR during its compilation of the state’s annual financial report.
The completed AFR was due to OSRAP on August 30, 2004. Good internal control requires
adequate procedures to accurately and completely record, process, and summarize financial
data needed to prepare accurate and timely financial statements.
 
The department’s AFR that was submitted on August 30, 2004, and revised and resubmitted on
October 26, 2004, included the following errors:
 
 
Net receivables reported on the AFR’s Exhibit E-1 (GASB 34 Proposed
Assessments Receivable) were understated by $24.6 million while net
receivables reported on Exhibit E-2 (GASB 34 Qualified Accounts Receivable)
were overstated by $112.9 million. Furthermore, gross receivables, the allowance
for uncollectible receivables, net collectible receivables, and noncurrent
receivables reported on Schedule 14 (GASB 34 Revenue Accruals) were

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
22
 
overstated by $112.6 million, $24.3 million, $88.3 million, and $100.3 million,
respectively. These misstatements occurred because of inaccurate GenTax
reports, inaccurate side-system reports, compilation errors, and inadequate
instructions regarding reporting procedures for accounts receivables greater than
$100,000.
 
The AFR’s Refunds Payable note was not completed initially. The revised note
reported $280 million of refunds payable, which was understated by $8.3 million
because of incomplete information from side-systems, inaccurate GenTax
reports, and compilation errors.
 
The AFR’s Schedule 4 (Schedule of Non-Appropriated Funds - Major State
Revenue and Income Not Available) and the Collection of Major State Revenues
note were overstated by $4.4 million because of a calculation error.
 
Additions and receivables reported on the AFR’s Exhibit C (Schedule of Agency
Funds) were overstated by $2.4 million because of an inadequate review of the
completed exhibit and its supporting documentation.
 
The AFR’s Protested Taxes note was understated by $1.6 million for sales tax
accounts that had not been included in the computation of protested taxes.
 
The AFR’s Prepaid Expenses note reported prepaid expenses totaling $2.2
million, which was overstated by $1.1 million because of a calculation error.
 
The AFR’s Schedule 8 (Schedule of Expenditures of Federal Awards) did not
include expenditures of $73,968. In addition, the expenditures for two separate
grants were reported under one award number. These errors occurred because
of an insufficient review of the completed schedule and supporting documenta-
tion.
Management has not placed sufficient emphasis on ensuring that the AFR is properly prepared
and reviewed for errors or omissions and ensuring that system-generated reports used for
preparing the AFR are complete and accurate. Failure to submit an accurate and timely AFR to
OSRAP could delay the compilation and issuance of the state’s CAFR and result in a
misstatement of the state’s CAFR.
 
Management should develop procedures to include written instructions and high-level
supervisory review of financial information and note disclosures to detect and correct errors
before submitting information to OSRAP. Management basically concurred with the finding and
outlined a corrective action plan (B-33).
 

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
23
 
FS-04-DOR-2 - Information System Control Weaknesses
 
The Department of Revenue has internal control weaknesses relating to the access and
monitoring of its information systems (IS). Good internal control ensures that access to
hardware, software, and data be limited to the business need of employees; authorized users
are assigned individual user IDs; system logs are effectively monitored; and security policies,
procedures, and controls are subject to a periodic audit.
 
During a review of the department’s IS security for the fiscal year ended June 30, 2004, the
following control deficiencies were noted:
 
 
The IS programming personnel have access to production software and
hardware within the department’s Data Control center and at the department’s
offsite operations at the Department of Public Safety.
 
One database administrator is also an authorized system administrator. This
combination of access rights grants to one individual the power to alter virtually
anything in the GenTax System.
 
A single user ID for the structured query language server used for all GenTax
database servers is shared among several database administrators.
 
A single user ID and password for providing access to the firewall is shared by
more than one administrator.
 
Procedures have not been established for the review of security and system logs
to detect security violations and/or inappropriate systems activity.
 
The department does not have an effective IS audit function. An adequate
system of internal control should include periodic reviews of the IS general and
application controls by an IS auditor.
These conditions occurred because the department is in the process of restructuring its
Information Technology Division. Control deficiencies could affect the integrity of programs,
processing, and data. As a result, risk exists that IS programs and data could be accessed and
modified without proper authorization, review, and approval and that errors or fraud could occur
and not be detected.
 
Management should establish adequate IS security policies, procedures, and controls and an
effective IS audit function to ensure the integrity of programs, processing, and data. In addition,
management should evaluate and consider using system monitoring software that would allow
the security administrator to effectively monitor system logs and activity. Management
concurred in part with the finding and outlined a corrective action plan (B-36).
 

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
24
 
FS-04-DOR-3 - Weaknesses in the GenTax System
 
For the second consecutive year, the Department of Revenue does not have sufficient internal
control over the tax accounting system (GenTax) functions, which could affect the integrity of
processing, financial data, and financial reporting. Good internal control requires that the
system has adequate written policies and procedures, adequate written system documentation,
and adequate input, processing, and output controls. Furthermore, good IS general and
application controls are necessary to preserve the integrity of the system, to provide reliance on
the results produced by the system, and to ensure that the processing of transactions is
performed in accordance with laws and regulations and with management's design and intent.
For the fiscal year ended June 30, 2004, GenTax processed over $2 billion of tax collections, as
well as other transactions.
 
During a review of the GenTax System for the fiscal year ended June 30, 2004, the following
control deficiencies were noted:
 
 
The department does not have formal written policies and procedures to control
changes made to the GenTax System. These policies and procedures are
necessary to ensure that system modifications made by department and third-
party IS personnel are adequately designed, documented, tested, approved, and
migrated into the system. The department’s lack of policies and procedures
caused programming errors in system-generated financial data reports that
caused net taxes receivable in the department’s AFR to be misstated by $85.8
million.
 
The department does not have adequate, written documentation in a user-
friendly format that clearly explains business requirements, system controls, data
flow, system reports, and the results of tests performed during the implemen-
tation of the GenTax System. The lack of adequate system documentation limits
the ability to independently verify that GenTax is processing tax transactions in
accordance with laws and regulations and is producing accurate financial data
and reports.
 
The department has not established sufficient controls over handling a suspense
account in the GenTax System. The Operations Division created a dummy
taxpayer account to function as a suspense account to hold payments and
returns that cannot be posted immediately to the correct taxpayer accounts. A
total of over $5 million has been processed through this dummy taxpayer
account. Without sufficient controls, this account could be manipulated by the
Director of Operations or numerous other employees who have access to
taxpayer accounts.
 

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
25
 
These conditions occurred because the department is implementing the GenTax System in
phases over a three-year period and has not placed sufficient emphasis on documentation and
controls. As a result, there is a risk that GenTax programs and data could be accessed and
modified without proper authorization, review, and approval and that errors or fraud could occur
and not be detected.
 
Management should establish adequate controls over the GenTax System and processes to
ensure the integrity of programs, processing, and data. Management concurred in part with the
finding and outlined a corrective action plan (B-39).
 
 
RISK MANAGEMENT, OFFICE OF
 
FS-04-ORM-1 - Unfunded Claims Costs for the
Road Hazard Line of Insurance
 
The Office of Risk Management (ORM) is allocating costs associated with processing road
hazard claims (including legal fees) to the road hazard line of insurance and making payments
for small claims losses (that are not the result of settlements or judgments), without collecting
premiums or direct appropriations to cover the costs. The deficit in the road hazard line of
insurance increases each year by the costs incurred in the road hazard line of insurance
because ORM does not receive any funds to cover these costs. At June 30, 2004, ORM has
accumulated a deficit of over $600 million in the road hazard line of insurance. For the year
ended June 30, 2004, costs associated with processing road hazard claims and payments
made on small claims of the road hazard line of insurance totaled $11.1 million, but no
insurance premiums or sufficient state appropriations were collected for this line of insurance.
Sound business practices dictate that premiums or appropriations should be collected to fund
required claim payments, settlements and associated costs, including legal fees, for each line of
insurance.
 
The DOA made a decision effective July 1, 2002, that ORM would no longer pay settlements
and judgments for road hazard claims from premiums collected. Settlements and judgments
are now paid through direct legislative appropriation. However, no provision has been made for
the associated costs of processing road hazard claims, including legal fees, other professional
services, salaries for the adjusters handling the claims, and small claims losses that are not the
result of settlements or judgments.
 
ORM included an estimate of premiums for the road hazard line of insurance in its budget
request submitted to the Office of Planning and Budget for the year ended June 30, 2004.
However, the Office of Planning and Budget cut 100% of the road hazard premium from the
budget request. The DOA and ORM should develop premiums and/or present suggestions to
the legislature as to how the state might fund future costs associated with processing road
hazard claims and small claims losses of the road hazard line of insurance, as well as a funding

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
26
 
methodology to eliminate the accumulated deficit over time. Management concurred with the
finding and recommendation and outlined a plan of corrective action (B-42).
 
 
TOBACCO SETTLEMENT FINANCING CORPORATION
 
FS-04-TOBCORP-1 - Internal Control Weaknesses Over Operations
 
For the third consecutive year, the Tobacco Settlement Financing Corporation’s board has not
hired staff, established an accounting system, or adequately monitored transactions of its bond
trustee. Adequate internal control includes assigning responsibility for maintaining an
accounting system and monitoring trustee activities to ensure compliance with laws and
regulations and that transactions are accomplished in the best interest of the corporation.
Internal control also provides assurance that the accounting system and its underlying data are
reliable. An accounting system should be designed to assemble, analyze, classify, record, and
report financial data. In performing these functions, an accounting system must also help to
maintain adequate control over the assets of the corporation.
 
R.S. 39:99.8(A) states that the staff of the Department of Treasury, including that of the State
Bond Commission, may, pursuant to a cooperative endeavor agreement, serve as staff to the
corporation under the supervision of the state treasurer. In lieu of a cooperative endeavor
agreement, a memorandum of understanding, effective for the fiscal year 2004, was executed
between the corporation and the Department of Treasury. The memorandum states, “The
Department of Treasury shall assume oversight over investment transactions activities as
performed by the trustee; shall assume responsibility for transaction processing as necessary;
and shall assume responsibility for financial recordation and reporting required to satisfy
statutory and audit requirements.” However, the memorandum was never distributed to the
board or the Department of Treasury, and therefore, the responsibilities were not assumed by
the Department of Treasury staff.
 
Neither the board nor the staff of the Department of Treasury exercised adequate oversight over
the financial and legal affairs of the Tobacco Settlement Financing Corporation and no formal
accounting records existed to support the financial statements. The trustee’s activities were not
reviewed for accuracy and compliance with laws, regulations or the contractual requirements
related to the bond indenture. In addition to the findings discussed under the legal compliance
section of this report, the following weaknesses in control were noted:
 
 
The corporation’s board engaged a certified public accountant (CPA) to prepare
the financial statements. Because the corporation had no books of original entry,
the CPA had to prepare spreadsheets to summarize the transactions of the
corporation. CPAs typically charge fees based on the number of hours estimated
to be necessary to complete a job. It is likely that the board incurred additional
expense because of its failure to provide books of original entry. In addition,

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Continued)
 
 
 
27
 
failure to prepare books of original entry makes it more difficult for management
to monitor the transactions of the corporation.
 
During the fiscal year, JPMorgan acquired Bank One’s Corporate Trust Services,
the corporation’s bond trustee. However, there was no review of the transfer of
funds from Bank One’s Corporate Trust Services to JPMorgan to ensure that all
funds were transferred correctly and in the correct amount. As a result, a
difference of $184,496 in the Liquidity Reserve 2001A Account occurred and was
not detected by the board. Furthermore, the board was not aware that the
trustee’s investment statement for May 2004 had not been received. Although
the investment statement has since been received and the difference corrected,
the corporation’s assets were subject to an unnecessary risk of loss or abuse.
 
In fiscal year 2003, a total of $41,920 of operating expenses were incorrectly paid
from the Cost of Issuance Account instead of the Operating Account. During
fiscal year 2004, management partially corrected this error by transferring
$31,920 from the Operating Account to the Millennium Trust. On August 27,
2003, management requested that the remaining $10,000 be transferred. As of
November 16, 2004, this $10,000 transfer had not taken place.
Without adequate monitoring and an accounting system, there is an increased risk that errors
and noncompliance with laws, regulations or the contractual requirements related to the bond
indenture will occur and not be detected or corrected in a timely manner. It also increases the
risk that fraud may occur and not be detected in a timely manner.
 
The board should hire adequate staffing or enforce the memorandum of understanding with the
Department of Treasury. Furthermore, the board should establish an accounting system and
internal control procedures, including monitoring of the trustee’s activities and investment
earnings. Finally, the board should transfer $10,000 from the Operating Account to the
Millennium Trust. Management concurred in part with this finding. Management did not concur
with the portion of the finding relating to the lack of books of original entry. Furthermore,
management did not concur with the portion of the finding relating to the monitoring of
investment activity and investment earnings maximization and stated that those portions of the
finding are in error and represent a misunderstanding of the account in question. See
management’s response at B-66.
 
Additional Comments:
We continue to believe that a lack of monitoring exists based on
information available through the State Treasurer’s Office. Monthly investment statements were
the only evidence of monitoring provided to the auditors, and as indicated in this finding, the
corporation was unaware that statements were missing until the statements were requested by
the auditor two months later. There was no indication that other records were maintained
(inclusive of spreadsheets) or that investment activity was monitored.
 

LEGISLATIVE AUDITOR
 
Schedule B
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Financial Statement Findings (Concluded)
 
 
 
28
 
TREASURY - STATE BOND COMMISSION,
DEPARTMENT OF
 
FS-04-CAFR-3 - Inadequate Control Over Debt Service
Contract Reimbursements
 
The State Bond Commission, a division of the Department of Treasury, failed to provide
adequate controls over the timely receipt and deposit of debt service contract reimbursements.
Good internal control requires that policies and procedures be established to ensure the timely
receipt and deposit of funds. Furthermore, Article VII, Section 9 of the Louisiana Constitution
requires that all money received by state agencies be deposited in the State Treasury
immediately upon receipt. The Division of Administration’s
Control Agencies Policies and
Procedures Manual
defines immediately as “within 24 hours of receipt.”
 
 
 
During our audit, we identified four debt service contract reimbursements, totaling $258,654,
that were not received until 17 to 33 days after their respective due dates, which resulted from
the lack of a formal Bond Commission policy to ensure the timely collection of these
reimbursements. In addition, we noted that a scheduled reimbursement of $2.6 million had not
been recorded by the Bond Commission. Upon further inquiry, the Bond Commission found
that, although the reimbursement check had been received four months earlier, the
reimbursement check had been placed with other documentation in a filing cabinet and never
deposited. Furthermore, no restrictive endorsement had been placed on the check upon
receipt. These exceptions, totaling over $2.85 million, represent approximately 58% of the total
debt service contract reimbursements scheduled to be received in fiscal year 2004.
 
The Bond Commission has not placed sufficient emphasis on implementing control policies and
procedures to ensure that reimbursement checks are received timely, restrictively endorsed,
and deposited immediately as required by the Louisiana Constitution and state regulation.
Failure to establish sufficient controls over collections and deposits could result in the loss or
abuse of state funds as well as lost interest earnings. In addition, failure to restrictively endorse
reimbursement checks increases the risk of theft.
 
The Bond Commission should implement policies and procedures to ensure that debt service
contract reimbursement checks are received timely, restrictively endorsed, and deposited
immediately as required by the Louisiana Constitution and state regulation. Management
concurred with the finding and outlined a plan of corrective action (B-68).
 
 

 
 
Schedule C
 
Federal Award Findings
and Questioned Costs
For the Year Ended June 30, 2004
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
 
Federal Award Findings and Questioned Costs
Index by Federal Agency
 
 
Page No.
 
29
 
FINDINGS COVERING MORE THAN ONE FEDERAL AGENCY
 
SOCIAL SERVICES, DEPARTMENT OF
F-04-CC-DSS-1 - Subrecipient Monitoring: Noncompliance With
Federal Regulations.............................................................................33
 
SOUTHERN UNIVERSITY AT SHREVEPORT-BOSSIER CITY
F-04-CC-SUSH-1 - Allowable Cost........................................................................................35
F-04-CC-SUSH-2 - Federal Financial Reports ......................................................................36
 
 
U.S. DEPARTMENT OF LABOR
 
LABOR, DEPARTMENT OF
F-04-USDOL-LABR-1 - Deficient Memorandums of Understanding......................................37
F-04-USDOL-LABR-2 - Fraudulent Travel Reimbursements.................................................39
F-04-USDOL-LABR-3 - Insufficient Monitoring of Workforce
Investment Act Subrecipients .......................................................40
F-04-USDOL-LABR-4 - Noncompliance With Cost Allocation Plan.......................................41
 
 
ENVIRONMENTAL PROTECTION AGENCY
 
ENVIRONMENTAL QUALITY, DEPARTMENT OF
F-04-EPA-DEQ-1
 
- Payroll Costs Improperly Charged.........................................................42
 
 
 
U.S. DEPARTMENT OF EDUCATION
 
GRAMBLING STATE UNIVERSITY
F-04-ED-GSU-1 - Aid Exceeded Documented Need.............................................................47
F-04-ED-GSU-2 - Satisfactory Academic Progress ...............................................................48
 
LOUISIANA COMMUNITY AND TECHNICAL COLLEGE SYSTEM
F-04-ED-LCTCS-1 - Inadequate Internal Control Over Vocational
Education Grant ................................................................................43
 
LOUISIANA TECHNICAL COLLEGE
F-04-ED-LTC-1 - Inadequate Control Over Pell Grant...........................................................44
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Index by Federal Agency
 
 
Page No.
 
30
 
U.S. DEPARTMENT OF EDUCATION (CONT.)
 
SOCIAL SERVICES, DEPARTMENT OF
F-04-ED-DSS-2 -
 
Vocational Rehabilitation - Noncompliance
With Federal Requirements .................................................................45
 
SOUTHERN UNIVERSITY AND A&M COLLEGE
(BATON ROUGE)
F-04-ED-SUBR-1 - Satisfactory Academic Progress.............................................................49
F-04-ED-SUBR-2 - Student Status Confirmation Reports .....................................................50
 
UNIVERSITY OF LOUISIANA AT LAFAYETTE
F-04-ED-ULL-1 - Over-Award of Federal Family Education Loans........................................46
 
 
 
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
 
ECONOMIC DEVELOPMENT, DEPARTMENT OF
F-04-HHS-DED-1 - Temporary Assistance for Needy Families
(TANF) Program: Noncompliance With
Certain Federal and State Requirements ...........................................50
 
ELDERLY AFFAIRS, GOVERNOR’S OFFICE OF
F-04-HHS-ELDAFF-1 - Ineffective Monitoring of Subrecipient
Audit Reports ................................................................................52
 
HEALTH AND HOSPITALS, DEPARTMENT OF
F-04-HHS-DHH-1 - Improper Claims Paid to a Social Work Provider ...................................53
 
LOUISIANA STATE UNIVERSITY HEALTH SCIENCES CENTER
(HEALTH CARE SERVICES DIVISION)
F-04-HHS-LSUHSC-HCSD-1 - Noncompliance With the HIV Care
Formula Grants Program ..................................................54
 
SOCIAL SERVICES, DEPARTMENT OF
F-04-HHS-DSS-3 - Child Support Escrow Fund Not Reconciled...........................................55
F-04-HHS-DSS-4 - Control Weaknesses Over the LaCarte
Purchasing Card Program ..................................................................56
F-04-HHS-DSS-5 - Foster Care - Title IV-E Program: Insufficient
Controls Over Reporting.....................................................................58
 
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Index by Federal Agency
 
 
Page No.
 
31
 
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (CONT.)
 
SOCIAL SERVICES, DEPARTMENT OF (CONT.)
F-04-HHS-DSS-6 - Temporary Assistance for Needy Families
Program (TANF) - Improper Payments...............................................59
F-04-HHS-DSS-7 - Temporary Assistance for Needy Families
Program - Noncompliance With Eligibility Requirements ...................60
 
SOUTHERN UNIVERSITY AND A&M COLLEGE
(BATON ROUGE)
F-04-HHS-SUBR-3 - Eligibility ...............................................................................................62
 
SOUTHERN UNIVERSITY AT NEW ORLEANS
F-04-HHS-SUNO-1 - Allowable Cost .....................................................................................63
F-04-HHS-SUNO-2 - Matching ..............................................................................................64
 
 
 
OTHER REPORTS
 
U.S. DEPARTMENT OF EDUCATION
 
EDUCATION, DEPARTMENT OF
Orleans Parish School Board.................................................................................................64
 
U.S. DEPARTMENT OF HOMELAND SECURITY
 
MILITARY DEPARTMENT
Louisiana Office of Homeland Security and Emergency Preparedness ................................65
 
 
 

 
32
 
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LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
 
Federal Award Findings and Questioned Costs
For the Year Ended June 30, 2004
 
 
 
33
 
FINDINGS COVERING MORE THAN ONE FEDERAL AGENCY
 
 
SOCIAL SERVICES, DEPARTMENT OF
 
F-04-CC-DSS-1 - Subrecipient Monitoring: Noncompliance With
Federal Regulations (2002, 2003)
 
Questioned
Costs
84.169 - Independent Living - State Grants $368,138
93.558 - Temporary Assistance for Needy Families 791,076
CCDF Cluster:
93.575 - Child Care and Development Block Grant
93.596 - Child Care Mandatory and Matching Funds
of the Child Care and Development Fund
$1,159,214
 
The Department of Social Services (DSS) did not comply with certain federal regulations in its
monitoring of federal subrecipients. Office of Management and Budget (OMB) Circular A-133
Section 400(d) requires the pass-through entity identify for the awards it makes to subrecipients,
the CFDA title and number, the award name and number, and the award year and that it advise
the subrecipient of requirements imposed on them by federal laws, regulations, and the
provisions of the contract or grant agreement. The circular also requires the pass-through entity
to monitor the activities of subrecipients and ensure that each subrecipient expending federal
pass-through funds totaling $300,000 or more has an annual audit. Effective June 27, 2003, the
expenditure threshold changed to $500,000 for all subrecipients’ fiscal years ending after
December 31, 2003.
 
Audit procedures performed on the department’s monitoring function disclosed the following:
 
 
For the third consecutive year, DSS failed to designate contracts as vendor or
subrecipient. Of the 47 undesignated contracts, 44 (94%) contracts with
payments ranging from $126 to $27 million were determined after the fiscal year
ended to be subrecipients. Timely designation is necessary to ensure proper
monitoring and reporting.

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
34
 
 
For two of 15 entities (13%) identified as subrecipients, DSS did not receive a
Single Audit report conducted in accordance with OMB Circular A-133.
Questioned costs totaled $1,159,214 (federal - $1,122,400 and state - $36,814).
 
For the seventh consecutive year, DSS did not ensure that the federal award
information and applicable compliance requirements were provided to the
subrecipient. A test of 20 contracts disclosed that 3 contracts (15%) did not
include the CFDA program name, three contracts (15%) did not include the
CFDA program number, and two contracts (10%) did not advise the
subrecipients of the requirements imposed by laws, regulations, and the
provisions of contract or grant agreements.
Failure to ensure that subrecipients receive federal program requirements, obtain required
audits, and are properly monitored increases the risk of noncompliance with applicable program
regulations.
 
Management should develop and enforce policies to ensure that monitoring and advisory
procedures are established to comply with OMB Circular A-133 requirements. Management
concurred with the finding and provided a corrective action plan (B-48).
 
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
35
 
SUMMARY OF FINDINGS
FROM OTHER EXTERNAL AUDITORS
FOR THE YEAR ENDED JUNE 30, 2004
 
 
SOUTHERN UNIVERSITY AT
SHREVEPORT-BOSSIER CITY
 
Independent auditors performed an audit of the Southern University at Shreveport-Bossier City
Schedule of Expenditures of Federal Awards and federal award programs for the year ended
June 30, 2004, and have issued their report thereon dated December 12, 2004. The following
findings were presented in their report.
 
F-04-CC-SUSH-1 - Allowable Cost (2004)
 
Questioned
Costs
84.048 - Vocational Education - Basic Grants to States $700
Research and Development Cluster:
93.859 - Biomedical Research and Research Training
The auditor noted the following conditions:
 
 
Indirect costs were calculated incorrectly for the Biomedical Research and
Training Program. The university used an indirect cost rate of 45% and an
indirect cost base of salaries and fringes. According to the grant agreement, the
university should have used an indirect cost rate of 8% and an indirect cost base
of total direct costs. As a result, indirect costs were overstated in the general
ledger in the amount of $6,374. Because the university has not drawn down
funds for the program, the auditors did not question any costs.
 
Management requested and received reimbursement for individual membership
dues for the Vocational Education - Basic Grants to States (Vocational
Education) Program in the amount of $700. Institutional memberships are
allowable according to OMB Circular A-21, Section 28 and program guidelines;
however, individual memberships are unallowable.
OMB Circular A-133 Compliance Supplement, Part 3, Section B, stipulates that direct costs
must conform with the limitations or exclusions set forth in the circulars, federal laws, state or
local laws, sponsored agreements or other governing regulations as to types or amounts of cost
items.

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
36
 
Management has not effectively ensured that program costs were allowable according to the
federal guidelines and that indirect costs were calculated in accordance with the grant
agreement. The auditors questioned costs totaling $700 for the Vocational Education Program.
 
The auditors recommended that management adhere to established procedures in reviewing
program costs for allowability and to ensure indirect costs are calculated in accordance with the
grant agreement. See management’s response at B-64.
 
 
F-04-CC-SUSH-2 - Federal Financial Reports (2004)
 
Questioned
Costs
93.558 - Temporary Assistance for Needy Families $0
Research and Development Cluster:
10.206 - Grants for Agricultural Research - Competitive
Research Grants
93.859 - Biomedical Research and Research Training
Student Financial Assistance Cluster:
84.007 - Federal Supplemental Educational Opportunity Grants
84.033 - Federal Work-Study Program
84.063 - Federal Pell Grant Program
The auditor noted that certain grant expenditures reported in the federal financial reports
submitted during the year ended June 30, 2004, did not agree in total to the university’s records
as follows:
 
CFDA Total Amount Total Per
Contract Per Financial University's Difference
Grant Name
Number Reports Records Over/(Under)
Temporary Assistance
for Needy Families 93.558 $126,238 $127,421 ($1,183)
 
In addition, the auditor noted the following conditions:
 
 
Form 272 financial reports were not prepared by the university for the Biomedical
Research and Training Grant and the Bone Densitometry as a Diagnostic Tool
for Monitoring Osteoporosis in Chickens and Training Grant. The university has
not prepared the Form 272 reports or drawn down any funds for the programs.

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
37
 
 
The university did not properly complete the required Form 269 (Financial Status
Report). The university reported expenditures based on the university’s fiscal
year instead of based on the grant period, as required.
 
OMB Circular A-133 Compliance Supplement, Part 3, Section L, stipulates that reports for
federal awards shall include all activity of the reporting period, be supported by applicable
accounting records, and be fairly presented in accordance with program requirements. In
addition, OMB Circular A-133 Compliance Supplement, Part 4, Section L, stipulates that
cumulative drawdown amounts in the Grant Administration and Payment System should
accurately reflect the grantee’s actual disbursement of funds by award.
 
The university failed to follow established procedures, which require personnel to reconcile
amounts per the financial records to the amounts drawn down and prepare financial reports in
accordance with federal requirements. Certain federal financial reports contained inaccurate
financial information and were not prepared as required by federal requirements.
 
The auditor recommended that management adhere to established procedures and ensure that
accurate financial information is submitted to the federal government. See management’s
response at B-65.
 
 
U.S. DEPARTMENT OF LABOR
 
 
LABOR, DEPARTMENT OF
 
F-04-USDOL-LABR-1 - Deficient Memorandums of Understanding
 
Questioned
Costs
WIA Cluster:
$0
17.258 - WIA Adult Program
17.259 - WIA Youth Activities
17.260 - WIA Dislocated Workers
 
For the second consecutive year, the Department of Labor has executed Memorandums of
Understanding (MOUs) that do not meet Workforce Investment Act (WIA) regulations (20 CFR
662.300) and has not fully implemented all MOUs. Entities (One-stop partners) responsible for
administering separate workforce investment, educational, and other human resource programs
coordinate to create a seamless system of service delivery that addresses the needs of

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
38
 
employers and job seekers. The Code of Federal Regulations requires that an MOU be
developed and executed between the One-stop partners relating to the operation of the One-
stop delivery system in the local area. The MOU must specify the services to be provided
through the One-stop delivery system and the funding of the services and the operating costs of
the system. The Code [20 CFR 662.100(d)] states that the One-stop delivery system must have
at least one comprehensive center and may also have affiliated sites that can provide one or
more partners’ programs, services, and activities at each site. Furthermore, the Code (20 CFR
662.270) states that each partner must contribute a fair share of the operating costs of the One-
stop delivery system that is proportionate to its use.
 
A review of six of 18 MOUs disclosed the following:
 
 
For three MOUs (50%), only the One-stop centers were listed. The MOUs did not
include the entire One-stop delivery system that consists of the One-stop center,
affiliated sites, and linked sites.
 
For two MOUs (33%), the cost allocation plan (CAP) had not been implemented
or was only partially implemented. A CAP is the part of the MOU that is used to
allocate operating costs proportionately between each partner.
 
For all six MOUs (100%), the department had not received documentation for the
total actual costs incurred for the One-stop centers. As a partner, the
department’s management should review this information for compliance with the
MOUs.
Because the department failed to ensure that the MOUs contained all required information and
were fully implemented, some federal programs that are paying the operating costs of the One-
stop delivery systems may be paying an unfair share of the costs.
 
Management of the department should ensure that all MOUs for the WIA One-stop delivery
systems contain all the required information and that the related cost allocation plans are fully
implemented. Management concurred with the recommendation but does not concur with the
finding because the requirements cited are not mandated by federal law. See management’s
response at B-19.
 
Additional Comment:
We believe that the requirements cited are mandated by federal law.
The WIA of 1998 (Public Law 105-220) authorizes the Secretary of the U.S. Department of
Labor to prescribe rules and regulations to administer the program and ensure compliance with
WIA’s requirements. These rules and regulations are established in the Code of Federal
Regulations under Title 20, sections 660 through 671, and have the force of law.
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
39
 
F-04-USDOL-LABR-2 - Fraudulent Travel Reimbursements
 
Questioned
Costs
17.203 - Labor Certification for Alien Workers $5,465
Employment Service Cluster:
17.207 - Employment Service 4,655
$10,120
 
On September 29, 2004, the Department of Labor notified the East Baton Rouge Parish District
Attorney and the U.S. Attorney for the Middle District of Louisiana that a departmental employee
apparently filed false travel expense reports and received travel reimbursements to which she
was not entitled. The Division of Administration’s Policy and Procedures Memorandum (PPM)
49, Travel Rules and Regulations, states that traveling expenses are limited to those expenses
necessarily incurred by them in the performance of a public purpose. The PPM also states that
whoever receives a reimbursement by means of false claim shall be subject to severe
disciplinary action as well as being criminally and civilly liable within the provisions of state law.
 
The travel expense reports submitted by the employee show that in a 16-month period she
traveled 84,279 miles in Louisiana using her personal vehicle. She received $30,458 in travel
reimbursements. The expense reports revealed inflated mileage from location to location,
awkward and unusual travel paths, and other suspicious inconsistencies such as using the
same odometer readings more than once and traveling more than 20 hours per day. The
employee also claimed travel reimbursements for days that the daily sign-in sheets show that
she was in her office in Baton Rouge. The department has determined that at least $10,120 of
the amount reimbursed appears to be fraudulent and thus is questioned costs. This employee
resigned August 30, 2004.
 
This situation occurred because the employee’s supervisor did not examine the travel
reimbursement documentation before approving the expense reports as required by
departmental policy. In addition, employees that processed the travel reimbursements did not
question the suspicious inconsistencies.
 
Management of the department should review travel reimbursements over a set amount more
thoroughly. Travel reimbursement reports from the Travel Management System should be
examined periodically for unusual reimbursement amounts or mileage claimed. Management
concurred with the finding (B-21).
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
40
 
F-04-USDOL-LABR-3 - Insufficient Monitoring of Workforce
Investment Act Subrecipients
 
Questioned
Costs
WIA Cluster:
$0
17.258 - WIA Adult Program
17.259 - WIA Youth Activities
17.260 - WIA Dislocated Workers
 
The Department of Labor did not adequately monitor subrecipients for compliance with federal
laws and regulations. The Code of Federal Regulations [20 CFR 667.410(b)(2)] requires the
department’s monitoring system to provide for annual onsite monitoring reviews, including
monitoring fiscal and administrative functions, of subrecipients’ compliance with the
department’s uniform administrative requirements.
 
As part of the monitoring process, the department’s monitors are instructed to compare the
subrecipients’ expenditure reports to their accounting records. An expenditure report is a
subrecipient’s certification of the monthly expenditures for a particular federal program by grant
year and supports the amounts reimbursed to the subrecipient. A test of six subrecipient
monitoring reviews, including approximately 500 WIA subrecipient expenditure reports,
disclosed the following:
 
 
Two (33%) of the monitoring reviews did not examine any WIA subrecipient
expenditure reports.
 
Four (66%) of the monitoring reviews examined only one or two of the WIA
subrecipient expenditure reports for the review period.
Since the department’s management did not stress the importance of performing the
comparison procedure, the monitors did not ensure that the subrecipients’ accounting records
supported the expenditure reports submitted to the department.
 
The monitors should review a sufficient number of monthly WIA subrecipient expenditure
reports to ensure that the accounting records support the expenditure reports submitted.
Management concurred in part with the finding and has outlined a corrective action plan (B-23).
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
41
 
F-04-USDOL-LABR-4 - Noncompliance With Cost Allocation Plan
 
Questioned
Costs
WIA Cluster:
$0
17.258 - WIA Adult Program
17.259 - WIA Youth Activities
17.260 - WIA Dislocated Workers
 
The Department of Labor did not perform quarterly reconciliations of overhead costs between its
cost allocation system and the state accounting system as required by the department’s CAP
approved by the U.S. Department of Labor. The CAP also requires the department to reallocate
these overhead costs so that the overhead rate is uniform for all federal grants at fiscal year-
end. The CAP requires this reallocation to be done no later than August 14
 
of
 
each year.
  
At June 30, 2004, the department’s cost allocation system and the state accounting system did
not reconcile by $1,007,180 and the amount of overhead costs requiring reallocation among the
department’s federal programs totaled $1,028,070. Although none of the required quarterly
reconciliations were performed, the department did reconcile its overhead costs for fiscal year
2004 on September 10, 2004. However, the department did not reallocate overhead costs
among its federal programs until October 2004. By not performing the required reconciliations
and reallocating overhead costs timely, the department is in noncompliance with its federally
approved CAP.
 
Management of the department should perform quarterly reconciliations of the department’s
cost allocation system and the state accounting system and should reallocate overhead costs
among federal programs by August 14 of each year as required by its approved cost allocation
plan. Management concurred with the finding and outlined a corrective action plan (B-24).
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
42
 
ENVIRONMENTAL PROTECTION AGENCY
 
 
ENVIRONMENTAL QUALITY, DEPARTMENT OF
 
F-04-EPA-DEQ-1 - Payroll Costs Improperly Charged (2003)
 
Questioned
Costs
66.458 - Capitalization Grants for Clean Water $10,217
State Revolving Funds
 
The Department of Environmental Quality, Municipal Facilities Revolving Loan Fund, did not
allocate all payroll costs charged to the Capitalization Grants for Clean Water State Revolving
Funds Program (CFDA 66.458) in accordance with federal regulations.
 
OMB Circular A-87 states that costs are allowable if they are reasonable and necessary for the
proper and efficient performance and administration of the program, are allocated to a particular
program to the extent of the relative benefits received, and are appropriately documented. The
costs of fringe benefits such as annual leave, sick leave, holidays, and other similar benefits,
are allowable if the costs are equitably allocated to all related activities.
 
During fiscal year 2004, payroll expenditures totaling $10,217 were charged to the federal
program for leave taken by two employees that should have been allocated to state activities,
and therefore, we questioned these costs. These errors occurred because of management
oversight. Failure to ensure the proper allocation of payroll costs increases the risk that the
federal program could be overcharged.
 
Management of the department should allocate payroll costs equitably to the federal program as
required by federal regulations. Management should also consult with the U.S. Environmental
Protection Agency regarding the resolution of the cited questioned costs. Management
concurred with the finding and recommendation and outlined a plan of corrective action (B-7).
 
 
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
43
 
U.S. DEPARTMENT OF EDUCATION
 
 
LOUISIANA COMMUNITY AND
TECHNICAL COLLEGE SYSTEM
 
F-04-ED-LCTCS-1 - Inadequate Internal Control Over Vocational
Education Grant
 
Questioned
Costs
84.048 - Vocational Education - Basic Grants to States $0
 
The Louisiana Community and Technical College System (LCTCS) did not have adequate
control procedures to ensure compliance with reporting requirements of the Vocational
Education - Basic Grants to States Program (CFDA 84.048). The Code of Federal Regulations
(34 CFR 80.40-.41) requires that an annual performance and financial status report
(consolidated annual report) be submitted to the U.S. Department of Education (USDOE) by the
90
th
day following the end of the grant year. These reports are organized by grant and are to be
reported by program year. Furthermore, 34 CFR 74.21 (b)(1) states that recipients’ financial
management systems shall provide for accurate, current, and complete disclosure of the
financial results of each federally sponsored project in accordance with specific program
reporting requirements. In addition, OMB Circular A-133, Subpart C, Section 300(b), requires
states to establish internal control over federally funded programs to provide reasonable
assurance of compliance with laws, regulations, and the provisions of grant agreements, which
would include providing accurate financial reporting.
 
During a review of the supporting documentation for the program’s December 31, 2003,
consolidated annual report (CAR), we noted that the expenditures were not designated in the
accounting system by grant award year. Because expenditures are not specified by award
year, we were unable to test financial reporting by program year. In addition, we noted various
errors on the CAR, including the incorrect period covered by the report, an incorrect grant award
number, and an incorrect federal funding period.
 
Management has not established the necessary accounting processes to track federal
expenditures in the accounting system by grant award year. In addition, management has failed
to perform a careful review of federal reports to ensure that the correct reporting periods and
grant award numbers are provided. Failure to track federal expenditures by grant award year
and to adequately review the federal report could subject LCTCS to noncompliance with federal
program requirements.
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
44
 
LCTCS management should establish control procedures to track grant expenditures in the
accounting system by grant award year and should adequately review federal reports before
submission to the federal grantor agency. Management concurred in part with the finding and
recommendation and outlined a plan of corrective action (B-25).
 
 
LOUISIANA TECHNICAL COLLEGE
 
F-04-ED-LTC-1 - Inadequate Control Over Pell Grant (2003, 2004)
 
Questioned
Costs
Student Financial Assistance Cluster:
$0
84.063 - Federal Pell Grant Program
 
For the third consecutive year, the Louisiana Technical College (LTC) has inadequate internal
control over refunds and returns of overpayments of the Federal Pell Grant Program (CFDA
84.063). The LTC also failed to properly maintain Federal Pell Grant (Pell) funds in an interest-
bearing bank account. The Code of Federal Regulations (34 CFR 668.22) requires that a
refund of Pell funds be made as soon as possible but no later than 30 days after the date of the
institution’s determination that the student withdrew. Furthermore, 34 CFR 668.21 requires that
an institution return overpayments resulting from Pell checks issued but not picked up by
students who subsequently withdrew, dropped out, or were expelled before the first day of class
(void transactions). Although the regulations do not give a specific time frame for returning
overpayments resulting from these void transactions, the institution should have policies in
place to ensure the timely return of these funds to the federal government, generally within 30
days. In addition, 34 CFR 668.163 requires Pell funds to be maintained in an interest-bearing
account or an investment account, unless certain exceptions are met, and remit all interest
earnings exceeding $250 to the federal government.
 
Pell refunds and returns of overpayments are initiated at the individual LTC campuses and sent
to the LTC central office, which then credits the Pell account and remits the funds to the
USDOE. In a test of 55 Pell refunds initiated during fiscal year 2004, 39 refunds (71%) totaling
$14,194 were not remitted to the USDOE until 32 to 181 days after the date of determination of
the students’ withdrawal. In addition, overpayments for 148 of 202 (73%) voided Pell checks
(void transactions) totaling $147,918 were not returned until 41 to 180 days after the checks
were issued.
 
Failure to adequately control Pell refunds and returns of overpayments and failure to maintain
Pell funds in an interest-bearing account has caused the LTC to be in noncompliance with
federal program requirements and exposes the LTC to a possible interest earnings liability. The
estimated amount of interest that would have been earned had the Pell funds been in an

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
45
 
interest-bearing account during the year is $1,184, of which $934 would have been due to the
USDOE.
 
Management of the LTC should implement policies and procedures to ensure that Pell refunds
and returns of overpayments from void transactions are remitted timely to the USDOE.
Management should also ensure that all Pell funds are maintained in an interest-bearing
account or an investment account and should consult with the USDOE regarding any possible
interest earnings liability. Management concurred with the finding and recommendation and
outlined a plan of corrective action (B-31).
 
 
SOCIAL SERVICES, DEPARTMENT OF
 
F-04-ED-DSS-2 - Vocational Rehabilitation - Noncompliance
With Federal Requirements (2003)
 
Questioned
Costs
84.126 - Rehabilitation Services - Vocational $997
Rehabilitation Grants to States
 
The Department of Social Services, Louisiana Rehabilitation Services (LRS), did not comply
with certain federal requirements for administering the Rehabilitation Services - Vocational
Rehabilitation Grants to States Program (CFDA 84.126). OMB Circular A-133, Subpart C,
Section 300(b), requires states to establish internal control over federally funded programs.
Title 34 CFR 80.20 requires federal award reports to be accurate, current, and disclose the
complete financial results in accordance with financial reporting requirements of the grant.
 
Reporting
 
For the third consecutive year, the review of the
Program Cost Report
(RSA-2) Schedule
1 disclosed errors that resulted from misclassifications and miscalculations identified on
the federal fiscal year 2003 report. As a result of the errors, total expenditures of the
RSA-2 report (line 4) were understated by $1,067,568.
 
The review of the
Financial Status Report
(SF-269) for the quarter ended September 30,
2003, for the 2003 Grant Award disclosed that certain indirect costs amounts were
omitted resulting in understatements of $523,366 and $411,889, on lines 11d and 11e,
respectively.
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
46
 
Activities Allowed/Allowable Cost
 
For the second consecutive year, the department may have improperly charged the
federal program. Three of 25 (12%) items tested did not include sufficient documen-
tation because departmental procedures did not require the client to verify the receipt of
goods and/or services. The other two items (8%) involved payments not cancelled when
the services were no longer needed. Total questioned costs were $997 (federal - $785
and state - $212).
 
 
Noncompliance with federal program requirements may result in the loss of federal funding or
the incurrence of disallowed cost that must be funded with state funds. In addition, failure to
prepare and submit accurate financial reports increases the risk that future grant payments
and/or awards to the department will be based on erroneous information.
 
Management should strengthen control procedures to ensure compliance with federal require-
ments of the Rehabilitation Services - Vocational Rehabilitation Grants to States Program.
Management concurred in part with the finding and provided a corrective action plan relating to
each issue. See management’s response at B-54.
 
 
UNIVERSITY OF LOUISIANA AT LAFAYETTE
 
F-04-ED-ULL-1 - Over-Award of Federal Family
Education Loans (2004)
 
Questioned
Costs
Student Financial Assistance Cluster:
84.032 - Federal Family Education Loans $6,863
 
The University of Louisiana at Lafayette (UL Lafayette) did not have sufficient controls to ensure
“cost of attendance” budget amounts were accurate when determining Federal Family
Education Loans (CFDA 84.032). The Code of Federal Regulations [34 CFR 682.603 (d)(2)]
states that a school may not certify a Stafford or PLUS loan application, or combination of loan
applications, for a loan amount that exceeds the student's estimated cost of attendance, less
the student's estimated financial assistance for that period, and in the case of a Stafford loan
that is eligible for interest benefits, the borrower's expected family contribution for that period.
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
47
 
Audit procedures conducted for 43 students indicated that three (7%) of the students cost of
attendance budget amounts were incorrectly posted to UL Lafayette’s system that calculates
and packages federal awards. This resulted in two of the students receiving $6,863 of Federal
Family Education Loans in excess of their financial need, which represents questioned cost. In
addition, over-awards of subsidized loans could cause the federal government to incur
additional interest expense, which may have to be repaid by UL Lafayette.
 
UL Lafayette should establish and implement controls to ensure that cost of attendance budgets
are entered properly so that federal awards are calculated correctly. Management concurred
with the finding and provided a corrective action plan (B-71).
 
 
SUMMARY OF FINDINGS
FROM OTHER EXTERNAL AUDITORS
FOR THE YEAR ENDED JUNE 30, 2004
 
 
GRAMBLING STATE UNIVERSITY
 
Independent auditors performed an audit of the Grambling State University Schedule of
Expenditures of Federal Awards and federal award programs for the year ended June 30, 2004,
and have issued their report thereon dated December 12, 2004. The following findings were
presented in their report.
 
F-04-ED-GSU-1 - Aid Exceeded Documented Need (2004)
 
Questioned
Costs
Student Financial Assistance Cluster:
84.032 - Federal Family Education Loans $7,530
 
The auditors noted that three students out of 70 tested received financial aid in excess of their
documented need. It appears that the university did not properly monitor the awarding and
disbursing of financial aid to certain students receiving financial aid.
 
OMB Circular A-133 Compliance Supplement, Part 5, Student Financial Assistance (SFA),
Section III E (Eligibility), specifies that the annual award should be calculated based upon
certain factors and coordinated among all programs to ensure that the total aid is not awarded in
excess of the student’s financial need.
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
48
 
Failure of the university to properly calculate the students’ cost of attendance and consider all
available resources resulted in the over-awarding of financial aid. The auditors questioned
costs totaling $7,530.
 
The auditors recommended that management adhere to established procedures and ensure
that the total financial aid received by students does not exceed their documented need. See
management’s response at B-13.
 
F-04-ED-GSU-2 - Satisfactory Academic Progress (2004)
 
Questioned
Costs
Student Financial Assistance Cluster:
$0
84.007 - Federal Supplemental Educational
Opportunity Grants
84.033 - Federal Work-Study Program
84.063 - Federal Pell Grant Program
84.268 - Federal Direct Student Loans
 
 
The auditors noted that the university’s Satisfactory Academic Progress policy did not include
certain standards as prescribed by Title IV regulations. The auditors noted that the policy does
not judge academic progress on a cumulative basis.
 
OMB Circular A-133 Compliance Supplement, Part 5, SFA Section III E (Eligibility), stipulates
that a student must maintain good standing or satisfactory progress. Title IV regulations, 34
CFR 668.16(c) and 34 CFR 668.34, stipulate that an institution must establish, publish, and
apply reasonable standards for measuring satisfactory academic progress. The regulations
further state that the standards used to judge academic progress must be cumulative and must
include all periods of the student’s enrollment.
 
The auditors recommended that management of the university take immediate steps to revise
the Satisfactory Academic Progress policy. See management’s response at B-14.
 
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
49
 
SOUTHERN UNIVERSITY AND A&M COLLEGE
(BATON ROUGE)
 
Independent auditors performed an audit of the Southern University and A&M College (Baton
Rouge) Schedule of Expenditures of Federal Awards and federal award programs for the year
ended June 30, 2004, and have issued their report thereon dated December 12, 2004. The
following findings were presented in their report.
 
F-04-ED-SUBR-1 - Satisfactory Academic Progress (2004)
 
Questioned
Costs
Student Financial Assistance Cluster:
84.007 - Federal Supplemental Educational
Opportunity Grants
84.032 - Federal Family Education Loans $15,018
84.033 - Federal Work-Study Program
84.063 - Federal Pell Grant Program 5,569
$20,587
 
The auditors noted that two students out of 60 tested were awarded and received financial aid,
although the students did not meet the university’s standards for achieving satisfactory
academic progress.
 
Title IV regulations, 34 CFR Section 668.32(f), stipulate that students participating in the Title IV
Federal Financial Aid programs must be maintaining satisfactory progress in the course of study
he or she is pursuing, according to the standards and practices of that institution to receive
student financial aid. In addition, OMB Circular A-133 Compliance Supplement, Part 5, Student
Financial Assistance (SFA) Section III E (Eligibility) Compliance Requirement Number (6),
stipulates that a student must maintain good standing or satisfactory progress. Title IV
regulations, 34 CFR 668.16(e), stipulate that an institution must establish, publish, and apply
reasonable standards for measuring satisfactory academic progress.
 
The university inadvertently disbursed financial aid to academically ineligible students. The
auditors questioned costs totaling $20,587.
 
The auditors recommended that the university adhere to established policies and procedures as
documented in the revised Satisfactory Academic Progress policy and monitor the academic
standing of all students before awarding student financial aid. See management’s response at
B-58.
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
50
 
F-04-ED-SUBR-2 - Student Status Confirmation Reports (2004)
 
Questioned
Costs
Student Financial Assistance Cluster:
$0
84.032 - Federal Family Education Loans
 
The auditors noted that six students out of 13 tested had conflicting information between the
student’s academic transcript and what was reported on the Student Status Confirmation
Report. As a result, the university was unable to accurately report certain information to the
USDOE.
 
OMB Circular A-133 Compliance Supplement, Part 5, SFA Section III, N (5), specifies that the
university must accurately complete and return within 30 days Student Status Confirmation
reports.
 
The auditors recommended that management of the university adhere to established
procedures and ensure that the Student Status Confirmation reports are submitted accurately.
See management’s response at B-59.
 
 
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
 
 
ECONOMIC DEVELOPMENT, DEPARTMENT OF
 
F-04-HHS-DED-1 - Temporary Assistance for Needy Families (TANF)
Program: Noncompliance With Certain Federal
and State Requirements (2003, 2004)
 
Questioned
Costs
93.558 - Temporary Assistance for Needy Families $226,548
 
The Department of Economic Development (DED) did not comply with certain federal and state
requirements for administering TANF (CFDA 93.558). The department uses TANF funds to
support its small business training and micro-lending programs.
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
51
 
Audit procedures performed on the TANF programs at DED disclosed the following conditions:
 
 
For one small business training contractor, Economic Development Assistance
Center, 61 (49%) of the 123 client files reviewed contained documentation that
was insufficient or did not exist to support compliance with eligibility requirements
resulting in questioned costs of $48,404. Upon further review of the documen-
tation of services provided, documentation was insufficient to determine if clients
received $10,794 in training services billed to DED. Questioned costs total
$59,198.
 
A total of $179,850 was paid by DED to its micro-lending contractors on
August 11, 2003, in preparing for loans and/or loan guarantees. Of this amount,
only two loans totaling $12,500 were made in the following three months. Since
the contractors did not have plans for immediate disbursement, DED may have
violated 45 CFR 92.21(c), which states that subgrantees “shall be paid in
advance, provided they maintain or demonstrate a willingness and ability to
maintain procedures to minimize the time elapsing between the transfer of funds
and their disbursement.” Questioned costs total $167,350.
 
The Memorandum of Understanding (MOU) between the Department of Social
Services (DSS) and DED states that “dollars recouped through loan repayment
will be available to a statewide microlending pool not subject to TANF eligibility
requirements.” However, this language is in noncompliance with 45 CFR 92.25
(a), which states that program income includes, but is not limited to, income from
payments of principal and interest on loans made with grant funds and may be
deducted from outlays, added to the project budget, or meet matching
requirements. The micro-lender has collected $3,033 in loan repayments and
interest.
DED monitoring procedures were not sufficient to ensure TANF funds were administered in
compliance with laws, regulations, and provisions of the contracts and/or grant agreements. In
addition, DED relied on its MOU with DSS for compliance with the TANF program, which does
not comply with the federal requirements regarding advances and program income. Failure to
establish and follow adequate monitoring procedures to ensure compliance with federal and
state regulations can result in payments made to ineligible clients, payments made in the wrong
amounts, and noncompliance with federal and state regulations. As a result of the exceptions
noted previously, questioned costs total $226,548.
 
Management should ensure that its TANF programs are in compliance with federal and state
regulations and should work with the grantor to determine the extent that federal funds need to
be reimbursed. Management concurred with the finding and outlined plans of corrective action
(B-3).

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
52
 
ELDERLY AFFAIRS, GOVERNOR’S OFFICE OF
 
F-04-HHS-ELDAFF-1 - Ineffective Monitoring of Subrecipient
Audit Reports
 
Questioned
Costs
Aging Cluster:
$0
93.044 - Special Programs for the Aging - Title lll, Part B - Grants
for Supportive Services and Senior Centers
93.045 - Special Programs for the Aging - Title lll, Part C - Nutrition
Services
93.053 - Nutrition Services Incentive Program
 
For the third consecutive audit, the Governor’s Office of Elderly Affairs (GOEA) is not effectively
performing the procedures required by the federal government for monitoring the activities of
subrecipients. OMB Circular A-133 requires a pass-through entity issue a management
decision on audit findings within six months after receipt of the subrecipient’s audit report and to
ensure that the subrecipient takes appropriate and timely corrective action.
 
A review of the office’s 37 audit reports for the fiscal year ended June 30, 2003, disclosed that
the GOEA had not reviewed and closed eight of the audit reports within six months of the
receipt of the reports. Six reports were not closed until three days to five months after the
six-month period and two reports were not closed as of December 13, 2004.
 
This condition existed because GOEA management did not follow its procedures to ensure that
audit reports are received, reviewed, and resolved in a timely manner. Failure to determine that
these audit reports are reviewed and findings, if any, are resolved in a timely manner increases
the risk that program funds will not be expended in accordance with applicable state and federal
laws and regulations.
 
The GOEA should timely review subrecipient audit reports to identify and resolve audit findings
and questioned costs. Management concurred with the finding and outlined a corrective action
plan (B-5).
 
 
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
53
 
HEALTH AND HOSPITALS, DEPARTMENT OF
 
F-04-HHS-DHH-1 - Improper Claims Paid to a Social Work Provider
 
Questioned
Costs
Medicaid Cluster:
93.778 - Medical Assistance Program $816
A social work provider billed the Medical Assistance Program (CFDA 93.778) during calendar
year 2003 for services that were not in accordance with policies established by the Centers for
Medicare and Medicaid Services (CMS). Clinical social work services are provided to qualified
recipients for the diagnosis and treatment of mental illness. Regulations and requirements for
the delivery of services and payment of claims are established through CMS policies.
 
During calendar year 2003, this provider submitted 4,947 claims totaling $253,761 for procedure
code 90808 - Psychotherapy (approximately 75 to 80 minutes). CMS policies define psycho-
therapy as treatment for mental illness and behavior disturbances in which the provider, through
definitive therapeutic communication, attempts to alleviate the emotional disturbances, reverse
or change maladaptive patterns of behavior, and encourage personality growth and
development. When these services are billed, the medical record must indicate the time spent
in the psychotherapy encounter and the therapeutic maneuvers that were applied to produce
therapeutic change or stabilization.
 
Our review of 16 claims totaling $816 for the provider disclosed the following:
 
 
For all 16 claims, the services were not provided by a licensed or certified clinical
social worker as required by CMS regulations.
 
For all 16 claims, the progress notes showed that the services provided were not
for therapeutic maneuvers but were for monitoring activities of daily living and
social interaction that cannot be billed for procedure code 90808 according to
CMS policies.
 
For all 16 claims, documentation in the patients’ medical records did not meet
CMS requirements for the use of procedure code 90808, lacking documentation
of medical necessity and definition of the extended services provided.
Since our review of 16 claims disclosed an error rate of 100%, all paid claims for this provider
for procedure code 90808 are questioned. As a result, known questioned costs totaled $816
and likely questioned costs totaled $252,945.
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
54
 
The department should refer all claims submitted by this provider to the Surveillance and
Utilization Review System, its internal legal counsel, and/or the Louisiana Attorney General’s
Medicaid Fraud Control Unit for investigation and recoupment of any amount due from this
provider for overpayments. In addition, the department should require that all future claims for
reimbursement by this provider be reviewed before payment. Management concurred in part
with the finding, noting that it believes appropriate corrective action has already been taken.
See management’s response at B-17.
 
 
LOUISIANA STATE UNIVERSITY HEALTH SCIENCES CENTER
(HEALTH CARE SERVICES DIVISION)
 
F-04-HHS-LSUHSC-HCSD-1 - Noncompliance With the HIV Care Formula
Grants Program (2003, 2004)
Questioned
Costs
93.917 - HIV Care Formula Grants $11,081
 
 
University Medical Center (UMC) and Lallie Kemp Regional Medical Center (LKRMC) did not
comply with eligibility requirements for administering the HIV Care Formula Grants Program
(CFDA 93.917). In accordance with agreements between the Louisiana Department of Health
and Hospitals (Office of Public Health) and UMC and LKRMC, the hospitals are responsible for
determining a patient’s financial eligibility. Financial eligibility requirements include documented
income at or below 200% of the federal poverty level, no third party payer source for these
medications, no other financial assets exceeding $4,000, and no incarcerated patients. In
addition, recertification is required of all patients seen for continued eligibility on, at a minimum,
an annual basis and records documenting the financial eligibility of all clients should be
maintained.
 
During a review of the HIV Care Formula Grants programs at UMC and LKRMC, the following
discrepancies were disclosed:
 
 
At UMC, nine (75%) of the 12 patients tested did not have evidence that income
had been verified within one year prior to the prescription fill date. Procedures
disclosed that UMC employees do not verify income if the patients state they are
not working and when employees do verify income patient information may not
be updated or maintained. In addition, if a patient does not have evidence to
support social security and/or welfare benefits, UMC employees may accept this
information based on the patient’s word.

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
55
 
 
At LKRMC, four (24%) of the 17 patient files tested were not eligible for the
program because of documented financial ineligibility, and one (6%) out of 17
was not eligible for the program because of a third party payer source and
financial assets exceeding $4,000. The patients were documented as ineligible
in LKRMC computer records, but LKRMC employees did not check the patients’
financial eligibility and incarceration status before providing program services and
charging the program.
Failure to establish adequate internal control procedures to ensure compliance with program
regulations can result in payments made to ineligible clients. As a result of the exceptions noted
at UMC, questioned costs totaled $7,675 for this program, which serves over 100 patients per
month at a cost of approximately $90,000 per month. As a result of the exceptions noted at
LKRMC, questioned costs totaled $3,406 for this program, which serves over 55 patients per
month at a cost of approximately $37,000 per month.
 
Management should develop and implement written control procedures over the HIV Care
Formula Grants Program to facilitate compliance with the program eligibility requirements and
should monitor adherence to those procedures. In addition, management should review current
patient files to ensure eligibility and that supporting documentation is maintained. Finally,
management should contact the grant provider to resolve the questioned costs. Management
concurred with the finding and recommendations and outlined a plan of corrective action (B-29).
 
 
SOCIAL SERVICES, DEPARTMENT OF
 
F-04-HHS-DSS-3 - Child Support Escrow Fund Not Reconciled (2004)
 
Questioned
Costs
93.563 - Child Support Enforcement $0
 
 
For the fifth consecutive year, the Department of Social Services (DSS) is not reconciling the
Child Support (Title IV-D) Escrow Fund to the client accounts on a periodic basis. Good internal
control includes periodic reconciliations of cash accounts (such as the Title IV-D Escrow Fund)
to subsidiary records (such as the client accounts). A proper reconciliation would provide
management with a basis to ensure that errors and/or fraud are detected in a timely manner and
that accounting data are both accurate and reliable.
 
The Title IV-D Escrow Fund is the clearing account that is used to process child support receipts
and payments. Child support receipts from noncustodial parents are deposited into the fund
and credited to the accounts of custodial parents. Distributions are then made to the custodial
parents and/or to the state General Fund, depending on the status of each parent’s account.

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
56
 
During fiscal year ended June 30, 2004, total collections and disbursements of the escrow fund
were approximately $306.8 million ($25.6 million per month) and $306.1 million ($25.5 million
per month), respectively. The balance in the account at June 30, 2004, is approximately $1.2
million.
 
Failure to reconcile the Title IV-D Escrow Fund cash to subsidiary client accounts could lead to
the misuse of funds and increases the risk that fraud and/or computer programming or operating
errors could occur and not be detected in a timely manner. A reconciliation would detect errors
such as undistributed amounts payable to custodial parents, undistributed amounts payable to
the state General Fund, and the failure to post a receipt to a client account.
 
Management of DSS should require monthly reconciliations of the Title IV-D Escrow Fund to the
client accounts to ensure that the accounting records are both accurate and reliable and that
child support receipts and related distributions to both the state and custodial parents have been
appropriately recorded. Management concurred with the finding and provided a corrective
action plan (B-43).
 
F-04-HHS-DSS-4 - Control Weaknesses Over the LaCarte
Purchasing Card Program (2003, 2004)
 
Questioned
Costs
93.658 - Foster Care - Title IV-E $3,549
 
For the second consecutive year, DSS did not follow state and departmental control procedures
relating to the LaCarte Purchasing Card Program. The State of Louisiana, Division of
Administration’s Louisiana “LaCarte” Purchasing Card Policy assigns agencies with various
responsibilities in relation to the administration of the purchasing card and the department has
established DSS Policy 1-19 (LaCarte Procurement Card Program) to provide detailed control
procedures.
 
A review of controls over the LaCarte Purchasing Card Program disclosed the following:
 
 
Two former Office of Community Services (OCS) employees made improper
purchases totaling $3,549, which represents questioned costs of the Foster
Care - Title IV-E Program [CFDA 93.658 ($1,566 - federal funds and $1,983 -
state funds)].
 
As of July 22, 2004, OCS had not reconciled $182,552 of LaCarte expenditures
to the electronic payments because the field offices had not submitted all of the
purchasing logs. Nearly 150 purchasing logs were outstanding for more than
three months.

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
57
 
 
Of 54 OCS purchasing logs tested, 52 (96%) were not reconciled within 30 days;
eight (15%) did not reconcile to or did not have sufficient documentation to
reconcile to the Bank of America statement; five (9%) contained receipts that
were not signed by the foster client, parent, or facility representative to validate
receipt of the items purchased; and four (7%) were not signed by the supervisor.
 
In all five field offices visited, supervisors did not review the purchasing log,
receipts, and/or the Bank of America memo statement in a timely manner.
 
Post audits were not performed and Info Span reports were not used as a
method to monitor card usage during the majority of fiscal year 2004.
 
DSS had $150,516 in unclassified expenditures for fiscal year 2004 because
OCS did not zero out the default accounts for its LaCarte purchases. Agencies
are responsible for distributing unclassified costs from the default accounts to the
proper accounting codes.
 
For 17 of the 174 (10%) separated employees tested, the employees’ LaCarte
purchasing card accounts remained open from 31 to 242 days after the
employees’ separation date. In addition, controls established to correct this
weakness were not functioning as reconciliations to payroll reports were not done
in a timely manner and cardholder update forms were either not maintained or
not received in a timely manner.
 
Improper segregation of duties exists because an Administrative Specialist 2 with
the Division of Support Services inputs the request for a new card into the Card
Program Administrator system, receives the card, and distributes the card to the
regional administrators.
Although the Division of Administration and DSS have established control procedures over the
LaCarte Purchasing Card Program, certain departmental personnel are choosing not to follow
these controls. Failure to adhere to control procedures increases the risk that errors and/or
fraud could occur and remain undetected. In addition, since certain expenditures made with the
LaCarte card are funded by the Foster Care - Title IV Program, the department may incur
disallowed cost.
 
DSS management should ensure employees and supervisors comply with state and depart-
mental control procedures relating to the LaCarte Purchasing Card Program. Management
concurred with the finding and provided a corrective action plan (B-45).
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
58
 
F-04-HHS-DSS-5 - Foster Care - Title IV-E Program: Insufficient
Controls Over Reporting (2004)
 
Questioned
Costs
93.658 - Foster Care - Title IV-E $0
 
For the fourth consecutive year, DSS, Office of Community Services (OCS), does not have
adequate internal control procedures to ensure that federal reports for the Foster Care - Title
IV-E Program (CFDA 93.658) are accurate and complete and in compliance with program
regulations. Good internal control requires that adequate procedures be in place to ensure that
the amounts reported include all activities of the reporting period, are supported by applicable
accounting records, and are fairly presented in accordance with program requirements.
 
A review of the Title IV-E Foster Care and Adoption Assistance Financial Report (ACF-IV-E-1)
for the quarter ended December 31, 2003, disclosed the following:
 
 
DSS did not implement procedures during fiscal year 2004 to consider the
unallowable social service costs, which may exist when prior quarter adjustments
for ineligible or incorrect payments are made. This may result in the Foster Care
Title IV-E Program being over/under charged. Questioned costs could not be
determined because the actual amount of social service costs associated with
the adjustments is unknown.
 
While numerous minor errors were identified throughout the report, a significant
error was noted in the federal share of a prior quarter assistance adjustment.
The adjustment was overstated by $808,473.
Failure to prepare and submit accurate financial reports increases the risk that future grant
payments and/or awards to the department will be based on erroneous information.
 
Management should strengthen procedures relating to preparing and reviewing financial reports
for completeness, accuracy, and compliance with program regulations. Management concurred
with the finding and provided a corrective action plan (B-47).
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
59
 
F-04-HHS-DSS-6 - Temporary Assistance for Needy Families
Program (TANF) - Improper Payments (2003)
 
Questioned
Costs
93.558 - Temporary Assistance for Needy Families $112,490
 
DSS made contract payments to TANF subrecipients and contractors that were not adequately
documented, necessary, and/or reasonable. OMB Circulars A-87 and A-122 state that costs
must be adequately documented, necessary, and reasonable to be allowable under federal
awards. OMB Circulars A-87 (Attachment B) and A-122 (Attachment B) further provide that
costs of entertainment, including amusement, diversion, and social activities, and any costs
directly associated with such costs as tickets to shows or sports events, meals, lodging, rentals,
transportation, and gratuities are unallowable.
 
In a review of 31 contract payments, the following exceptions were noted:
 
 
A subrecipient invoiced DSS for expenditures totaling $50,551 that are excessive
and unnecessary to carry out the objectives of its Teen Pregnancy Prevention
Program.
 
June 2003 invoices included expenditures for trips to Dixie Landin’/Blue
Bayou Water Park ($1,640); Six Flags New Orleans ($1,349); Celebration
Station ($1,146); a movie theater ($480); and a bowling alley ($267).
Transportation cost associated with these trips totaled $1,966. The
subrecipient described these expenditures as “field trips” and noted that it
was unaware of agency guidelines regarding reasonable and customary
expenditures.
 
Other unnecessary and unreasonable expenses included $3,472 in
clothing; $1,012 in backpacks; $864 for PlayStation systems with
accessories and games; $684 for boiled crabs, shrimp, and crawfish;
$637 for watches; $625 for a graduation ceremony; $239 for CD players
and a CD; $227 for a trip to Café Du Monde; and $114 in flip-flops.
 
Receipts for fast food meals, food items, and non-food items totaled
$9,747 of which $3,745 occurred in June 2003.
 
Participant incentives totaling $26,082 were paid and included monetary
gifts ($3.50 per hour + $25.00 for each week of perfect attendance)
totaling $25,238, various items from department stores (i.e., Footlocker,
Dillard’s) totaling $424, and a trip to Montrel’s Creole Café totaling $420.

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
60
 
 
The department used federal funds to pay duplicate charges of another
contractor and his subcontractors, thereby “double-billing” the TANF program
$61,265, which represents questioned costs.
 
 
For two of the 31 contract payments (6%), DSS overpaid subrecipients by $674
as invoiced amounts were either improperly billed or improperly paid.
Monitoring of contract payments was insufficient to identify those payments that were excessive
and/or unnecessary to carry out the objectives of the TANF program. Failure to establish and
follow adequate internal control procedures to ensure compliance with federal regulations can
result in ineligible payments, which may lead to disallowed costs. As a result of the exceptions
noted previously, questioned costs for TANF (CFDA 93.558) total $112,490.
 
DSS management should strengthen control procedures over TANF contract payments to
reduce the likelihood of improper and/or unnecessary payments. In addition, management
should ensure all subrecipients are aware of applicable cost regulations. Management did not
concur with the finding noting that expenditures relating to the Teen Pregnancy Prevention
program were necessary and not excessive and the duplicate payment was appropriate. See
management’s response at B-49.
 
Additional Comments:
Based upon
 
our review of federal TANF regulations, these expendi-
tures were unallowable.
 
F-04-HHS-DSS-7 - Temporary Assistance for Needy Families
Program - Noncompliance With
Eligibility Requirements (2003, 2004)
 
Questioned
Costs
93.558 - Temporary Assistance for Needy Families $1,798
 
DSS, Office of Family Support (OFS), did not comply with certain eligibility requirements for
administering the TANF Program (CFDA 93.558). OFS uses TANF funds to operate several
programs, including the Family Independence Temporary Assistance Program (FITAP).
 
A review of 30 FITAP client cases disclosed the following conditions:
 
 
For the sixth consecutive year, OFS failed to sufficiently document client
compliance with the mandatory work requirements for the Strategies to Empower
People (STEP) program pursuant to 42 USCS 607. In four of 11 applicable
cases (36%), the case file and department's database did not contain verification
that the client met the participation requirements and/or that the case manager
verified the hours worked.

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
61
 
 
For the third consecutive year, OFS failed to sufficiently document in nine of 30
cases (30%) tested, whether each child in the assistance unit lives in the home of
a parent or a qualified relative pursuant to 42 USCS 608 (a)(1).
 
For the sixth consecutive year, documentation in the test case files was not
sufficient to verify the relationship of the caretaker to the minor child as required
by R.S. 46:231(3)(b) and the TANF State Plan for three of 30 cases (10%)
examined.
 
In two of 30 cases (7%), insufficient documentation existed in the case file to
determine if the client’s income exceeded the benefit amount. According to DSS
Policy B-631-1-FTAP, income should be verified at initial application, at
re-determination, at the midpoint of a 24-month certification period, and when
income changes, except when the amount reported by the household indicates
ineligibility.
   
 
For the sixth consecutive year, certain client information in the department's
computer databases did not agree with, or was not supported by, documentation
in the client's case file in five of 30 cases (17%) examined.
OFS personnel did not follow eligibility regulations and established procedures in the
administration of the TANF Program. Failure to follow adequate internal control procedures to
ensure compliance with federal and state regulations can result in payments made to ineligible
clients, payments made in the wrong amounts, or failure to provide benefits to eligible clients.
As a result of the exceptions noted previously, questioned costs totaled $1,798.
 
 
Management should require all employees to adhere to eligibility regulations and established
procedures in administering the TANF Program. Management concurred with the finding and
provided a corrective action plan (B-52).
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
62
 
SUMMARY OF FINDINGS
FROM OTHER EXTERNAL AUDITORS
FOR THE YEAR ENDED JUNE 30, 2004
 
 
SOUTHERN UNIVERSITY AND A&M COLLEGE
(BATON ROUGE)
 
Independent auditors performed an audit of the Southern University and A&M College (Baton
Rouge) Schedule of Expenditures of Federal Awards and federal award programs for the year
ended June 30, 2004, and have issued their report thereon dated December 12, 2004. The
following finding was presented in their report.
 
F-04-HHS-SUBR-3 - Eligibility (2004)
 
Questioned
Costs
Student Financial Assistance Cluster:
93.925 - Scholarships for Health Professions Students from $3,700
Disadvantaged Backgrounds
 
 
The auditors noted that one student out of 10 tested received Scholarships for Students from
Disadvantaged Backgrounds (SDS) funds but was not enrolled as a full-time student.
 
OMB Circular A-133 Compliance Supplement, Part 5, Student Financial Assistance Section
III(A)(E)(1), specifies that SDS Scholarships should be awarded to any full-time student who is
from a disadvantaged background, has a financial need, and is enrolled in a program leading to
a degree in a health profession or nursing.
 
The university failed to adhere to established procedures and ensure that the student met the
eligibility requirements. The auditors questioned costs totaling $3,700.
 
The auditors recommended that the university adhere to established procedures. See
management’s response at B-57.
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
63
 
SOUTHERN UNIVERSITY AT NEW ORLEANS
 
Independent auditors performed an audit of the Southern University at New Orleans Schedule
of Expenditures of Federal Awards and federal award programs for the year ended June 30,
2004, and have issued their report thereon dated December 12, 2004. The following findings
were presented in their report.
 
F-04-HHS-SUNO-1 - Allowable Cost (2004)
 
Questioned
Costs
Research and Development Cluster:
93.859 - Biomedical Research and Research Training
$3,250
 
 
The auditors noted that management of the university improperly billed and received indirect
costs for the Biomedical Research and Training Program as follows:
 
Indirect
Indirect Cost Per
Base Cost Indirect General
Indirect Cost Base
Amount Rate Cost Ledger Difference
Salaries $44,723 39.00% $17,442 $20,692 $3,250
 
OMB Circular A-133 Compliance Supplement, Part 3, Section B, stipulates that direct costs
must conform with the limitations or exclusions set forth in the circulars, federal laws, state or
local laws, sponsored agreements or other governing regulations as to types or amounts of cost
items.
 
The university failed to adhere to established procedures to properly calculate and record
indirect costs. The auditors questioned the costs disbursed to the university as a result of the
improper calculation of indirect costs, which totaled $3,250 for the Biomedical Research and
Training Program.
 
The auditors recommended that management adhere to established procedures and take
immediate steps to ensure that indirect costs are properly calculated and billed to the funding
agency. See management’s response at B-61.
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Continued)
 
 
 
64
 
F-04-HHS-SUNO-2 - Matching (2004)
 
Questioned
Costs
93.658 - Foster Care - Title IV-E $18,005
 
The auditors noted that the university failed to meet the matching requirements stipulated in the
grant agreement for the period July 1, 2003, through June 30, 2004.
 
Matching Per Matching
Cost Report Requirement Difference
$143,340 $161,345 ($18,005)
 
OMB Circular A-133 Compliance Supplement, Part 3, Section G, stipulates that a non-federal
entity must provide matching or cost sharing of a specified amount or percentage as provided in
the contract or grant agreement with the federal government.
 
The university failed to meet matching requirements outlined in the grant agreement. The
auditors questioned the federal costs that were not matched by the university totaling $18,005.
 
The auditors recommended that the university comply with the matching requirements of the
grant agreement. See management’s response at B-61.
 
 
OTHER REPORTS
 
U.S. DEPARTMENT OF EDUCATION
 
EDUCATION, DEPARTMENT OF
 
Orleans Parish School Board
 
On February 16, 2005, the U.S. Department of Education, Office of Inspector General (OIG),
issued a report on the Orleans Parish School Board, a subrecipient of the Louisiana Department
of Education. The report included findings that Orleans Parish School Board did not properly
account for and use Title I Grants to Local Educational Agencies (CFDA 84.010) funds in
accordance with applicable regulations. The report includes recommendations and responses
from the Louisiana Department of Education. The OIG requested comments on the report from
the state Superintendent of Education within 30 days.
 
 

LEGISLATIVE AUDITOR
 
Schedule C
 
STATE OF LOUISIANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Federal Award Findings and Questioned Costs (Concluded)
 
 
 
65
 
U.S. DEPARTMENT OF HOMELAND SECURITY
 
 
MILITARY DEPARTMENT
 
Louisiana Office of Homeland Security
and Emergency Preparedness
 
On March 3, 2004, a report was issued on the Louisiana Office of Homeland Security and
Emergency Preparedness by the Louisiana Legislative Auditor’s Compliance Division (formerly
Fraud and Abuse Audit Division). The report included a finding that the Louisiana Office of
Homeland Security and Emergency Preparedness failed to adequately monitor sub-grantee
expenditures relating to the Flood Mitigation Assistance (CFDA 97.029) and Hazard Mitigation
Grant (CFDA 97.039) programs. That report, including recommendations for improvement and
management’s full response, can be found at the Office of Legislative Auditor’s Web site at
www.lla.state.la.us/inves/oep04.pdf.
 
 

 
66
 
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Schedule D
 
Schedule of Unresolved
Prior Audit Findings
For the Year Ended June 30, 2004
 

LEGISLATIVE AUDITOR
 
Schedule D
 
STATE OF LOUISIANA
Schedule of Unresolved Prior Audit Findings
For the Year Ended June 30, 2004
 
 
 
67
 
Page No.
 
ELDERLY AFFAIRS, GOVERNOR’S OFFICE OF
Ineffective Monitoring of Subrecipient Audit Reports ............................................................. 52
 
EXECUTIVE DEPARTMENT
Ineffective Internal Audit Function.......................................................................................... 15
Weaknesses in Information Systems’ Controls...................................................................... 16
 
LABOR, DEPARTMENT OF
Deficient Memorandums of Understanding............................................................................ 37
Inaccurate and Incomplete Annual Fiscal Report .................................................................. 18
 
LOUISIANA COMMUNITY AND TECHNICAL COLLEGE SYSTEM
Information Systems Control Weaknesses ............................................................................ 20
 
LOUISIANA TECHNICAL COLLEGE
Inadequate Control Over Pell Grant....................................................................................... 44
 
REVENUE, DEPARTMENT OF
 
Annual Fiscal Report Not Properly Prepared......................................................................... 21
Weaknesses in the GenTax System ..................................................................................... 24
 
SOCIAL SERVICES, DEPARTMENT OF
Child Support Escrow Fund Not Reconciled.......................................................................... 55
Control Weaknesses Over the LaCarte Purchasing
Card Program ...................................................................................................................... 56
Foster Care - Title IV-E Program: Insufficient Controls
Over Reporting..................................................................................................................... 58
Subrecipient Monitoring: Noncompliance With
Federal Regulations............................................................................................................. 33
Temporary Assistance for Needy Families Program -
Noncompliance With Eligibility Requirements...................................................................... 60
Vocational Rehabilitation - Noncompliance With
Federal Requirements ......................................................................................................... 45
 
TOBACCO SETTLEMENT FINANCING CORPORATION
Internal Control Weaknesses Over Operations ..................................................................... 26
 

 
68
 
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Appendix A
 
Schedule of Expenditures of Federal Awards
and Notes to the Schedule of
Expenditures of Federal Awards
For the Year Ended June 30, 2004
 

LEGISLATIVE AUDITOR
 
Appendix A
 
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
 
 
 
A-1
Federal Prefix and Agency Page No.
 
10 -- U.S. Department of Agriculture..................................................................................A-3
 
11 -- U.S. Department of Commerce ................................................................................A-17
 
12 -- U.S. Department of Defense ....................................................................................A-26
 
14 -- U.S. Department of Housing and Urban Development.............................................A-35
 
15 -- U.S. Department of the Interior.................................................................................A-37
 
16 -- U.S. Department of Justice.......................................................................................A-48
 
17 -- U.S. Department of Labor.........................................................................................A-54
 
19 -- U.S. Department of State .........................................................................................A-57
 
20 -- U.S. Department of Transportation...........................................................................A-61
 
21 -- U.S. Department of the Treasury..............................................................................A-63
 
22 -- U.S. Postal Service...................................................................................................A-64
 
27 -- Office of Personnel Management .............................................................................A-64
 
30 -- Equal Employment Opportunity Commission ...........................................................A-64
 
39 -- General Services Administration ..............................................................................A-65
 
42 -- Library of Congress ..................................................................................................A-65
 
43 -- National Aeronautics and Space Administration ......................................................A-65
 
45 -- National Endowment for the Arts..............................................................................A-72
 
45 -- National Endowment for the Humanities ..................................................................A-73
 
45 -- Institute of Museum and Library Services ................................................................A-74
 
47 -- National Science Foundation....................................................................................A-74
 
59 -- Small Business Administration .................................................................................A-80
 

LEGISLATIVE AUDITOR
 
Appendix A
 
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
 
 
 
A-2
Federal Prefix and Agency Page No.
 
64 -- U.S. Department of Veterans Affairs ........................................................................A-80
 
66 -- Environmental Protection Agency ............................................................................A-81
 
81 -- U.S. Department of Energy ......................................................................................A-88
 
83 -- Federal Emergency Management Agency ...............................................................A-92
 
84 -- U.S. Department of Education..................................................................................A-93
 
89 -- National Archives and Records Administration .......................................................A-108
 
93 -- U.S. Department of Health and Human Services ....................................................A-108
 
94 -- Corporation for National and Community Service ...................................................A-141
 
96 -- Social Security Administration .................................................................................A-142
 
97 -- U.S. Department of Homeland Security ..................................................................A-142
 
98 -- U.S. Agency for International Development ............................................................A-144
 
99 -- Executive Office of the President ............................................................................A-145
 
Loan Activity.....................................................................................................................A-145
 
Notes to the Schedule of Expenditures of Federal Awards .............................................A-147
 

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE
Agricultural Research - Basic and Applied Research 10.001
Direct Awards:
LSU Agricultural Center
$1,147,012
Plant and Animal Disease, Pest Control, and Animal Care 10.025
Direct Awards:
Department of Agriculture and Forestry
1,838,190
Department of Wildlife and Fisheries
44,648
Total Plant and Animal Disease, Pest Control, and Animal Care 1,882,838
Market News
10.153
Direct Awards:
Department of Agriculture and Forestry
3,000
Marketing Agreements and Orders 10.155
Direct Awards:
Department of Agriculture and Forestry
6,595
Federal-State Marketing Improvement Program 10.156
Direct Awards:
Department of Agriculture and Forestry
9,570
Inspection Grading and Standardization 10.162
Direct Awards:
Department of Agriculture and Forestry
4,585
Market Protection and Promotion 10.163
Direct Awards:
Department of Agriculture and Forestry
67,129
Grants for Agricultural Research, Special Research Grants 10.200
Direct Awards:
LSU Agricultural Center
10,589
Through: Oceanic Institute
Nicholls State University
62,747
Total Grants for Agricultural Research, Special Research Grants 73,336
Payments to Agricultural Experiment Stations 10.203
Under the Hatch Act
Direct Awards:
LSU Agricultural Center
52,930
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-3

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE (CONT.)
Grants for Agricultural Research - Competitive Research Grants 10.206
Direct Awards:
LSU in Shreveport
$13,610
Food and Agricultural Sciences National Needs 10.210
Graduate Fellowship Grants
Direct Awards:
LSU A&M College (Baton Rouge)
47,705
1890 Institution Capacity Building Grants 10.216
Direct Awards:
Southern University and A&M College (Baton Rouge)
337,534
Higher Education Challenge Grants 10.217
Direct Awards:
LSU Agricultural Center
25,400
LSU A&M College (Baton Rouge)
3,773
LSU in Shreveport
27,298
Total Higher Education Challenge Grants
56,471
Biotechnology Risk Assessment Research 10.219
Through: Alabama A&M University (#521009616)
Southern University and A&M College (Baton Rouge)
(5,499)
Fund for Rural America - Research, Education, 10.224
and Extension Activities
Direct Awards:
Southern University and A&M College (Baton Rouge)
138,295
Integrated Programs 10.303
Direct Awards:
LSU Agricultural Center
212,767
Through: North Carolina State University
LSU Agricultural Center
2,782
Through: University of Florida (#01-51120-9678)
LSU Agricultural Center
35,813
Through: University of Florida - IFAS Pesticide Center
(#00-51120-9678)
LSU Agricultural Center
23,074
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-4

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE (CONT.)
Integrated Programs (Cont.) 10.303
Through: University of Southern California (#2003-51110-02122)
LSU Agricultural Center
$9,723
Through: University of Wisconsin - Madison (#PR200151110)
Southern University and A&M College (Baton Rouge)
12,252
Total Integrated Programs
296,411
Homeland Security - Agricultural 10.304
Through: Purdue University
LSU Agricultural Center
81,649
Through: University of Florida (#2002-3001-12082)
LSU Agricultural Center
4,481
Total Homeland Security - Agricultural
86,130
Rural Housing Preservation Grants 10.433
Direct Awards:
Grambling State University
60,340
Rural Community Development Initiative 10.446
Direct Awards:
Executive Department
25,477
Crop Insurance
10.450
Direct Awards:
Southern University and A&M College (Baton Rouge)
6,913
Cooperative Agreements With States for Intrastate Meat 10.475
and Poultry Inspection
Direct Awards:
Department of Agriculture and Forestry
2,155,512
Southern University and A&M College (Baton Rouge)
164
Total Cooperative Agreements With States for Intrastate Meat
and Poultry Inspection
2,155,676
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-5

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE (CONT.)
Cooperative Extension Service 10.500
Direct Awards:
LSU Agricultural Center
$7,619,320
Southern University and A&M College (Baton Rouge)
948,807
Through: Kansas State University
LSU Agricultural Center
5,208
Through: Mississippi State University
LSU Agricultural Center
30,000
Through: National 4-H Council
LSU Agricultural Center
65,430
Through: North Carolina State University
LSU Agricultural Center
50
Through: Texas A&M University (#TCE622640-7)
Southern University and A&M College (Baton Rouge)
46,104
Through: Texas A&M University - Texas Cooperative Extension
LSU Agricultural Center
517
Through: University of Georgia
LSU Agricultural Center
848
Total Cooperative Extension Service
8,716,284
Food Donation
10.550
Direct Awards:
Department of Agriculture and Forestry
20,735,502
Special Supplemental Nutrition Program for Women, 10.557
Infants, and Children
Direct Awards:
Office of Public Health
87,799,680
Child and Adult Care Food Program 10.558
Direct Awards:
Department of Education
50,930,399
State Administrative Expenses for Child Nutrition 10.560
Direct Awards:
Department of Agriculture and Forestry
235,029
Department of Education
3,482,538
Total State Administrative Expenses for Child Nutrition 3,717,567
Commodity Supplemental Food Program 10.565
Direct Awards:
Office of Public Health
19,979,773
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-6

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE (CONT.)
Team Nutrition Grants 10.574
Direct Awards:
Department of Education
$109,923
Commodity Assistance Program 10.576
Direct Awards:
Department of Agriculture and Forestry
97,488
Forestry Research 10.652
Direct Awards:
Department of Agriculture and Forestry
336,575
Forest Lands Enhancement Program 10.663
Direct Awards:
Department of Agriculture and Forestry
49,089
Cooperative Forestry Assistance 10.664
Direct Awards:
Department of Agriculture and Forestry
3,156,967
Southern University and A&M College (Baton Rouge)
970
Total Cooperative Forestry Assistance
3,157,937
Rural Development, Forestry, and Communities 10.672
Direct Awards:
Department of Agriculture and Forestry
326,403
Rural Business Enterprise Grants 10.769
Direct Awards:
University of Louisiana at Monroe
11,895
Soil and Water Conservation 10.902
Direct Awards:
Department of Agriculture and Forestry
800,904
Agricultural Statistics Reports 10.950
Direct Awards:
Department of Agriculture and Forestry
26,000
Technical Agricultural Assistance 10.960
Direct Awards:
LSU Agricultural Center
134,823
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-7

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE (CONT.)
Scientific Cooperation and Research 10.961
Direct Awards:
LSU Agricultural Center
$49,367
International Training - Foreign Participant 10.962
Direct Awards:
LSU Agricultural Center
5,984
Cooperative Funds and Deposits - LA Archeology Week 10.03-PA-1180600-010
Direct Awards:
Department of Culture, Recreation and Tourism
1,500
Diagnostic Network 10.2002-30001-12085
Direct Awards:
LSU A&M College (Baton Rouge)
259,902
External Review of the School of Human Ecology and 10.CSA-LA4-412
Extension Programs in F&CS
Direct Awards:
LSU Agricultural Center
2,334
Forest Service Cooperative Agreement 10.01PA11080603010
Through: Kisatchie National Forest
Northwestern State University
6,237
Implementation Wildland Fire Management 10.04-PA-11083160-010
Direct Awards:
Grambling State University
8,280
Indonesia Phase II - Beef/Cattle Industry 10.901025208
Direct Awards:
LSU Agricultural Center
27,343
Livestock and Poultry Environmental Stewardship 10.920016205
Through: University of Nebraska
LSU Agricultural Center
405
Multi-Media On-Line E-Learning Services 10.311016-1512
Through: Edgenics
Grambling State University
12,561
Natural Resources Conservation Service - WHIP - 10.unknown
Fixed Price Contract
Direct Awards:
Department of Wildlife and Fisheries
2,454
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-8

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE (CONT.)
Soil Conservation - Fixed Price Contract 10.FSAKCMOCDSP
Direct Awards:
Department of Wildlife and Fisheries
$4,716
Southern Region Watershed Resources Management Program 10.450140-2
Through: Texas A&M University - Texas Agricultural Extension
Service (#00-51130-9752)
LSU Agricultural Center
80,947
Termite Management Education Program 10.58-6435-8-084
Direct Awards:
LSU Agricultural Center
(17,381)
Web Content and Material Edit/Review of the New 10.P&PA-04-32
USDA/CSREES Web Site
Direct Awards:
LSU Agricultural Center
8,428
Child Nutrition Cluster:
  
School Breakfast Program 10.553
Direct Awards:
Department of Education
49,255,442
National School Lunch Program 10.555
Direct Awards:
Department of Education
156,086,532
Special Milk Program for Children 10.556
Direct Awards:
Department of Education
43,430
Summer Food Service Program for Children 10.559
Direct Awards:
Department of Education
7,396,993
Total Child Nutrition Cluster
212,782,397
Emergency Food Assistance Cluster:
  
Emergency Food Assistance Program (Administrative Costs) 10.568
Direct Awards:
Department of Agriculture and Forestry
1,168,781
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-9

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE (CONT.)
Emergency Food Assistance Cluster: (Cont.)
Emergency Food Assistance Program (Food Commodities) 10.569
Direct Awards:
Department of Agriculture and Forestry
$8,830,368
Total Emergency Food Assistance Cluster
9,999,149
Food Stamp Cluster:
Food Stamps
10.551
Direct Awards:
Louisiana Tech University
3,356
Department of Social Services
733,267,729
State Administrative Matching Grants for 10.561
Food Stamp Program
Direct Awards:
Department of Social Services
43,728,924
Total Food Stamp Cluster
777,000,009
Research and Development Cluster:
Agricultural Research - Basic and Applied Research 10.001
Direct Awards:
LSU Agricultural Center
476,451
LSU A&M College (Baton Rouge)
38,747
Nicholls State University
38,388
Pennington Biomedical Research Center
382,328
Plant and Animal Disease, Pest Control, and Animal Care 10.025
Direct Awards:
LSU Agricultural Center
147,189
Perishable Agricultural Commodities Act 10.165
Direct Awards:
Southern University and A&M College (Baton Rouge)
1,657
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-10

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE (CONT.)
Research and Development Cluster: (Cont.)
Grants for Agricultural Research, Special Research Grants 10.200
Direct Awards:
LSU Agricultural Center
$1,307,748
Louisiana Tech University
71,973
Pennington Biomedical Research Center
714,017
Through: Fort Valley State University
LSU A&M College (Baton Rouge)
41,372
Through: Mississippi State University (#018000 321454-02)
Louisiana Tech University
2,486
Through: Auburn University
LSU Agricultural Center
227,425
Through: Mississippi State University - SRAC
LSU A&M College (Baton Rouge)
22,194
Through: Mississippi State University - Southern Regional
Aquaculture Center (#2002/2001-38500-11805/10307)
LSU Agricultural Center
3,836
Through: North Carolina State University (#2001-39443-11414)
LSU Agricultural Center
1,721
Through: Texas A&M University - Texas Agricultural
Experiment Station (#2002-38824-01900)
LSU Agricultural Center
37,378
Through: University of Florida
LSU A&M College (Baton Rouge)
10,925
Through: University of Georgia
LSU Agricultural Center
64,038
Cooperative Forestry Research 10.202
Direct Awards:
Louisiana Tech University
175,281
Payments to Agricultural Experiment Stations 10.203
Under the Hatch Act
Direct Awards:
LSU Agricultural Center
3,426,003
Payments to 1890 Land-Grant Colleges 10.205
and Tuskegee University
Direct Awards:
Southern University and A&M College (Baton Rouge)
59,610
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-11

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE (CONT.)
Research and Development Cluster: (Cont.)
Grants for Agricultural Research - 10.206
Competitive Research Grants
Direct Awards:
LSU Agricultural Center
$243,471
LSU A&M College (Baton Rouge)
195,943
Louisiana Tech University
24,994
Pennington Biomedical Research Center
71,408
Through: East Carolina University (#2002-35204-12218)
LSU Agricultural Center
10,470
Through: Pennsylvania State University (#2000-35400-12142)
LSU Agricultural Center
309
Through: Purdue University (#591-387-1)
Southern University at Shreveport-Bossier City
20,294
Through: Regents of the University of Minnesota
LSU Agricultural Center
21,884
Through: University of Southern Mississippi
LSU A&M College (Baton Rouge)
7,169
Animal Health and Disease Research 10.207
Direct Awards:
LSU A&M College (Baton Rouge)
39,173
Food and Agricultural Sciences National Needs 10.210
Graduate Fellowship Grants
Direct Awards:
LSU A&M College (Baton Rouge)
3,075
1890 Institution Capacity Building Grants 10.216
Direct Awards:
Southern University and A&M College (Baton Rouge)
739,391
Higher Education Challenge Grants 10.217
Direct Awards:
LSU Agricultural Center
20,838
LSU in Shreveport
46,492
Fund for Rural America - Research, Education, and 10.224
Extension Activities
Direct Awards:
Louisiana Tech University
143,168
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-12

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE (CONT.)
Research and Development Cluster: (Cont.)
Agricultural and Rural Economic Research 10.250
Through: Mississippi State University
LSU Agricultural Center
$10,787
Initiative for Future Agriculture and Food Systems 10.302
Through: University of Arkansas
LSU Agricultural Center
27,378
Integrated Programs 10.303
Direct Awards:
LSU Agricultural Center
32,064
LSU A&M College (Baton Rouge)
251,254
Through: North Carolina State University
LSU Agricultural Center
38,223
Forestry Research 10.652
Direct Awards:
LSU Agricultural Center
203,946
LSU A&M College (Baton Rouge)
35,878
Louisiana Tech University
2,381
Cooperative Forestry Assistance 10.664
Direct Awards:
LSU Agricultural Center
1,902
Soil and Water Conservation 10.902
Direct Awards:
LSU Agricultural Center
32,437
Southern University and A&M College (Baton Rouge)
7,074
Soil Survey
10.903
Direct Awards:
LSU Agricultural Center
55,670
Technical Agricultural Assistance 10.960
Direct Awards:
Southern University and A&M College (Baton Rouge)
2,264
Abundance, Diversity, and Chemical Ecology of Allen 10.RD.SRS04-CA-11330129-059
Invasive Ambrosia Beetles
Direct Awards:
LSU Agricultural Center
8,333
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-13

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE (CONT.)
Research and Development Cluster: (Cont.)
Area Wide Control of the Tarnished Plant Bug in Louisiana 10.RD.58-6402-0-015
Direct Awards:
LSU Agricultural Center
$102,618
Beltwide Collection of Bollworm and Tobacco Budworm 10.RD.58-6402-1-130
Direct Awards:
LSU Agricultural Center
1,957
Biology and Control of the Formosan Subterranean Termite 10.RD.58-6435-8-084
Direct Awards:
LSU Agricultural Center
(13,960)
Calibrating and Enhancing the U.S. Regional Agricultural 10.RD.43-3AEL-3-80120
Sector Mathematical Programming Model
Direct Awards:
LSU Agricultural Center
15,576
Characterization of Photochemicals in North America 10.RD.58-5306-2-838
Direct Awards:
LSU Agricultural Center
4,376
Defining Growing Season From Measured Soil Temperature 10.RD.68-7482-7-264
Direct Awards:
LSU Agricultural Center
(1,151)
Developing the Goat Meat Industry by Improving 10.RD.940185101
Market Channel Communication
Direct Awards:
LSU Agricultural Center
6,771
The Development of an Internet-Based Computer 10.RD.SRS03-CA-11330133-085
Merchlob Slash Software
Direct Awards:
LSU Agricultural Center
15,512
The Effects of Prescribed Burning and Other Fuel Reduction 10.RD.SRS02-CA-11330122-039
Treatments on Beetle Populations in Upland
Pine-Hardwood Forests
Direct Awards:
LSU Agricultural Center
7,075
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-14

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE (CONT.)
Research and Development Cluster: (Cont.)
Enhanced Goat Production Systems for 10.RD.PO38852/51544
the Southern United States
Through: Langston University (#2001-04350)
LSU Agricultural Center
$7,491
Examining Economic Costs and Benefits 10.RD.58-6435-8-084
Direct Awards:
LSU Agricultural Center
(18)
Geostatistical Analysis of Sediment Characteristics 10.RD.58-6408-2-0049
in Reservoirs
Direct Awards:
LSU Agricultural Center
25,059
Impacts of Offroad Vehicles (ORV) to Soil, Water and 10.RD.00-CS-11080600-020
Other Resources
Direct Awards:
LSU Agricultural Center
8,360
Implementation of the Unified Climate Access Network 10.RD.40-3142-1-01775
Direct Awards:
LSU A&M College (Baton Rouge)
12,500
Measuring the Impact of Imports on 10.RD.43-3AEK-3-80075
Domestic Producers' Prices
Direct Awards:
LSU Agricultural Center
7,432
Metabolic Kitchen 10.RD.US AES 2001-102
Through: University of Arkansas (#00-52102-9635)
Pennington Biomedical Research Center
196,504
Modeling Risk of Chinese Tallow Invasion 10.RD.00-JV-11272177-028
in a Heterogeneous Landscape
Direct Awards:
LSU A&M College (Baton Rouge)
3,373
To Monitor Abundance and Distribution 10.RD.01-CS-11080604-010
of Northern Bobwhite
Direct Awards:
LSU Agricultural Center
1,675
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-15

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE (CONT.)
Research and Development Cluster: (Cont.)
Monitoring Gene Expression Patterns for Auxin-Regulated 10.RD.unknown
Genes During Cotton Fiber Development
Direct Awards:
University of New Orleans
$65,578
Monitoring Productivity and Environmental Quality in 10.RD.SRS03-CA-11330122-019/#4080
Southern Pine Plantations
Direct Awards:
LSU Agricultural Center
27,463
A Multi-State Evaluation of Influence or Timing 10.RD.58-6402-1-118
Direct Awards:
LSU Agricultural Center
106
Proposal for a Participating Agreement With USDA 10.RD.03-PA-11083150-120
Forest Service, Forest Health Protection and Louisiana
Agricultural Experiment Station
Direct Awards:
LSU Agricultural Center
63,341
Reduced - Risk Tactics for Thrips and Tospoviruses on 10.RD.PO#L82397
Solaneceous Crops
Through: University of Florida
LSU Agricultural Center
4,407
Resistance to Aspergillus Flavus 10.RD.58-6435-1-109
Direct Awards:
University of Louisiana at Lafayette
12,117
Review Activity and Impact Summaries Developed by 10.RD.90-CSA-LA1-122/P&PA-03-201
Land-Grant Universities
Direct Awards:
LSU Agricultural Center
10,530
Role of the Siderophore DHBA in Virulence of Brucella 10.RD.940446139
Abortus in Cattle
Through: East Carolina University
LSU Agricultural Center
12,047
Soil and Water Research Unit/Utilities 10.RD.58640120003/T36413101/20
Direct Awards:
LSU Agricultural Center
16,385
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-16

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF AGRICULTURE (CONT.)
Research and Development Cluster: (Cont.)
Specialty Crop Funds 10.RD.961596154
Through: LA Pecan Growers Association
LSU Agricultural Center
$33,386
Tagging and Gathering of Cotton Blooms and Bolls 10.RD.961605100
Direct Awards:
LSU Agricultural Center
2,000
Total Research and Development Cluster
10,196,947
Schools and Roads Cluster:
Schools and Roads - Grants to States 10.665
Direct Awards:
Department of Treasury
3,752,747
Total U.S. Department of Agriculture
$1,217,580,626
U.S. DEPARTMENT OF COMMERCE
Economic Development - Technical Assistance 11.303
Direct Awards:
University of New Orleans
$45,325
Economic Adjustment Assistance 11.307
Direct Awards:
Grambling State University
29,584
Fishery Products Inspection and Certification 11.413
Direct Awards:
Department of Agriculture and Forestry
71,260
Sea Grant Support 11.417
Direct Awards:
LSU A&M College (Baton Rouge)
45,005
Coastal Zone Management Administration Awards 11.419
Direct Awards:
Executive Department
70,212
Department of Natural Resources
6,744,918
Total Coastal Zone Management Administration Awards 6,815,130
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-17

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF COMMERCE (CONT.)
Financial Assistance for National Centers for 11.426
Coastal Ocean Science
Through: Tulane University
Nicholls State University
$90,720
Cooperative Fishery Statistics 11.434
Direct Awards:
Department of Wildlife and Fisheries
849,396
Unallied Industry Projects 11.452
Direct Awards:
Department of Wildlife and Fisheries
8,862,373
Habitat Conservation 11.463
Direct Awards:
Department of Natural Resources
5,912,432
Department of Wildlife and Fisheries
170,216
Total Habitat Conservation
6,082,648
Coastal Services Center 11.473
Direct Awards:
Executive Department
1,688
Department of Natural Resources
436,544
University of New Orleans
152,180
Total Coastal Services Center
590,412
Technology Opportunities Program 11.552
Direct Awards:
Grambling State University
224,331
LSU A&M College (Baton Rouge)
43,032
University of Louisiana at Monroe
23,936
Total Technology Opportunities Program
291,299
Operations of the Southern Regional Climate Center 11.EA133E-02-CN-0028
Direct Awards:
LSU A&M College (Baton Rouge)
304,999
Gulf of Mexico Fisheries Management Council 11.99-LA-70300
Direct Awards:
Department of Wildlife and Fisheries
33,332
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-18

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF COMMERCE (CONT.)
Implementation and Testing of Dairy Waste Treatment 11.58512-S9
Through: UNO Research and Technology Foundation
(#NA16FZ2719)
LSU Agricultural Center
$25,360
National Marine Fisheries Services - Sea Turtle
Direct Awards:
McNeese State University 11.40GENF200266 10,233
McNeese State University 11.NFFN7020-3-00311 3,356
Total National Marine Fisheries Services - Sea Turtle
13,589
National Sea Grant College Program
11.NRMP000300250
Direct Awards:
Department of Wildlife and Fisheries
20,000
Vibrio Education Sea Grant
11.88-03-21500/31000
Through: Gulf and South Atlantic Fisheries Foundation, Inc.
Department of Wildlife and Fisheries
11,702
Public Works and Economic Development Cluster:
Grants for Public Works and Economic 11.300
Development Facilities
Direct Awards:
Department of Economic Development
60,285
Research and Development Cluster:
Geodetic Surveys and Services (Geodesy and Applications 11.400
of the National Geodetic Reference System)
Direct Awards:
LSU A&M College (Baton Rouge)
388,358
Interjurisdictional Fisheries Act of 1986 11.407
Direct Awards:
Department of Wildlife and Fisheries
151,140
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-19

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF COMMERCE (CONT.)
Research and Development Cluster: (Cont.)
Sea Grant Support 11.417
Direct Awards:
LSU A&M College (Baton Rouge)
$1,963,974
Through: Dauphin Island Sea Lab
LSU A&M College (Baton Rouge)
61,565
Through: University of Mississippi
LSU A&M College (Baton Rouge)
29,179
Through: University of New York (#1017223)
University of Louisiana at Lafayette
22,179
Coastal Zone Management Administration Awards 11.419
Through: University of New Hampshire
LSU A&M College (Baton Rouge)
243,603
Through: University of New Hampshire (#02-682)
University of Louisiana at Lafayette
3,577
Coastal Zone Management Estuarine Research Reserves 11.420
Through: University of New Hampshire
LSU A&M College (Baton Rouge)
(1,385)
Fisheries Development and Utilization Research and 11.427
Development Grants and Cooperative Agreements Program
Direct Awards:
LSU Agricultural Center
46,256
Through: Gulf and South Atlantic Fisheries Foundation Inc.
LSU A&M College (Baton Rouge)
1,855
Undersea Research 11.430
Through: University of North Carolina at Wilmington
LSU A&M College (Baton Rouge)
37,010
Climate and Atmospheric Research 11.431
Through: Texas A&M Research Foundation (#S020016)
Louisiana Universities Marine Consortium
53,349
Office of Oceanic and Atmospheric Research (OAR) Joint 11.432
and Cooperative Institutes
Through: Desert Research Institute - University
System of Nevada
LSU A&M College (Baton Rouge)
101,659
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-20

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF COMMERCE (CONT.)
Research and Development Cluster: (Cont.)
Marine Fisheries Initiative 11.433
Direct Awards:
LSU A&M College (Baton Rouge)
$303,886
Cooperative Fishery Statistics 11.434
Direct Awards:
Department of Wildlife and Fisheries
83,327
Southeast Area Monitoring and Assessment Program 11.435
Direct Awards:
Department of Wildlife and Fisheries
121,617
Marine Mammal Data Program 11.439
Through: Institute for Marine Mammal Studies Inc.
LSU A&M College (Baton Rouge)
99,850
Unallied Management Projects 11.454
Through: Gulf and South Atlantic Fisheries Foundation, Inc.
LSU A&M College (Baton Rouge)
7,974
Special Oceanic and Atmospheric Projects 11.460
Direct Awards:
LSU A&M College (Baton Rouge)
91,201
Through: University of Connecticut (#523369)
University of Louisiana at Lafayette
4,046
Habitat Conservation 11.463
Direct Awards:
Louisiana Universities Marine Consortium
292,023
LSU Agricultural Center
(183)
Coastal Services Center 11.473
Direct Awards:
LSU A&M College (Baton Rouge)
343,334
Louisiana Universities Marine Consortium
11,686
University of Louisiana at Lafayette
23,985
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-21

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF COMMERCE (CONT.)
Research and Development Cluster: (Cont.)
Center for Sponsored Coastal Ocean Research - Coastal 11.478
Ocean Program
Direct Awards:
LSU A&M College (Baton Rouge)
$1,126,026
Louisiana Universities Marine Consortium
927,303
Through: Texas A&M Research Foundation
LSU A&M College (Baton Rouge)
11,197
Analysis of Coral Samples in the Aleutian Islands 11.RD.HC133F043E0030
Direct Awards:
University of Louisiana at Lafayette
8,612
Analytical Chemistry Support for Hurricane Isabel 11.RD.50ABNC200041/T O #6
Direct Awards:
LSU A&M College (Baton Rouge)
997
Anti-V Vlunificus Oyster Defensin 11.RD.NA03NMF4270085
Direct Awards:
LSU Health Sciences Center (New Orleans)
118,298
Assessment of Chemical Hazards 11.RD.50ABNC200041/T O #3
Direct Awards:
LSU A&M College (Baton Rouge)
323
Assessment of Chemical Hazards Associated With Oil 11.RD.50ABNC200041/T O #1
Direct Awards:
LSU A&M College (Baton Rouge)
180,504
Coastal Storms Contingency Plans - Task Order #2 11.RD.50ABNC200041/T O #2
Direct Awards:
LSU A&M College (Baton Rouge)
4,816
Coastal Wetlands Education in the Lake Pontchartrain Basin 11.RD.NA16FZ2719
Through: UNO Research and Technology Foundation
(#58534-S6)
University of New Orleans
28,776
Critical Habitat, Coastal Land/Land Cover Change Analysis, 11.RD.NA16FZ2719
and NDVI Monitoring
Through: UNO Research and Technology Foundation
(#58534-S7, 8)
University of New Orleans
253,424
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-22

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF COMMERCE (CONT.)
Research and Development Cluster: (Cont.)
Establishment of an Environmental and Infrastructure 11.RD.NA16FZ2719
Information Clearinghouse Phase I
Through: UNO Research and Technology Foundation
(#58534-S2)
University of New Orleans
$102,269
Fisheries Habitat Use of Submerged Aquatic Vegetation 11.RD.DG133F-03-SE-0661
Direct Awards:
LSU Agricultural Center
9,100
Impact of Sugarcane Production Management Strategies 11.RD.58512-S8
Through: UNO Research and Technology Foundation
(#NA16FZ2719)
LSU Agricultural Center
82,080
Implementation and Testing of Dairy Waste Treatment 11.RD.58512-S9
Through: UNO Research and Technology Foundation
(#NA16FZ2719)
LSU Agricultural Center
21,130
Intergovernmental Personnel Act for Scott France 11.RD.28L4SOMPFB
Direct Awards:
University of Louisiana at Lafayette
24,509
Lake Hydronamics and Stormwater Impacts on Recreational 11.RD.NA16FZ2719
Activities on the South Shore of LP
Through: UNO Research and Technology Foundation
(#58534-S9)
University of New Orleans
19,165
The Lake Pontchartrain Basin Restoration Act of 2000 11.RD.NA16FZ2719
Through: University of New Orleans Research and Technology
Foundation (#58512-S6, #58534-S12, #58534-S11)
Southeastern Louisiana University
203,673
M/V Alchiba Incident; Pensacola, FL 11.RD.50ABNC200041/T O #4
Direct Awards:
LSU A&M College (Baton Rouge)
500
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-23

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF COMMERCE (CONT.)
Research and Development Cluster: (Cont.)
Manufacturing Extension Partnership 11.RD.70NANB6H0172
Direct Awards:
University of Louisiana at Lafayette
$626,536
Modeling of Circulation and Stormwater Plumes in 11.RD.NA16FZ2719
Lake Pontchartrain
Through: UNO Research and Technology Foundation
(#58512-S2, 3, 4, 5)
University of New Orleans
112,246
Provide an Update on the Conservation Status 11.RD.WC133F-02-SE-0188
of the Marine Fisheries Service
Direct Awards:
LSU A&M College (Baton Rouge)
15,929
Quantifying the Importance of Chandeleur Islands and 11.RD.NA16FZ2719
Biloxi Marsh Marine Habitats to Commercial and
Recreational Fishery Productivity in Lake Pontchartrain
Through: UNO Research and Technology Foundation
(#58534-S3)
University of New Orleans
123,229
Reintegration of Prince William Sound Gas 11.RD.50ABNC200041/T O #5
Chromatograph/Mass Spectroscopy Data
Direct Awards:
LSU A&M College (Baton Rouge)
7,817
Response to Sulfuric Acid Leak in Texas City Ship 11.RD.50AB1C200041/T O #7
Direct Awards:
LSU A&M College (Baton Rouge)
4,559
Shark Nursery Ground Delineation in Louisiana Coast 11.RD.WC133F-03-SE-0693
Direct Awards:
LSU A&M College (Baton Rouge)
7,100
Sodium Bisulfide Barge 11.RD.50ABNC20041/T O #8
Direct Awards:
LSU A&M College (Baton Rouge)
4,852
Species Status of Oculina Varicosa 11.RD.WC133F-03-SE-0620
Direct Awards:
LSU A&M College (Baton Rouge)
60,000
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-24

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF COMMERCE (CONT.)
Research and Development Cluster: (Cont.)
State of Louisiana Marine Managed Area Data Collection 11.RD.NOS-LA-1
Direct Awards:
LSU A&M College (Baton Rouge)
$5,150
Status, Trends, and Restoration of Submersed 11.RD.NA16FZ2719
Aquatic Vegetation (grass beds) in Lake Pontchartrain
Through: UNO Research and Technology Foundation
(#58534-S5)
University of New Orleans
63,618
Support of Summer Field Activities on St. Paul and 11.RD.50ABNC700031/T O #24
St. George Islands, Alaska
Direct Awards:
LSU A&M College (Baton Rouge)
(246)
Technical Assistance for Development of Yang Shan Port, 11.RD.GH2360222
Peoples Republic of China
Through: The Louis Berger Group Inc. (#02-206-P)
University of New Orleans
54,067
Trends in the Distribution and Abundance of 11.RD.NA16FZ2719
Lake Pontchartrain Benthic Invertebrates With Emphasis
on Clam Habitat Restoration
Through: UNO Research and Technology Foundation
(#58534-S4)
University of New Orleans
64,098
Value of North Shore Marshes in Improving Lake 11.RD.NA16FZ2719
Water Quality - Assessment of Sustainability Under
Nutrient Loading and Rising
Through: UNO Research and Technology Foundation
(#58534-S10)
University of New Orleans
74,865
Total Research and Development Cluster
8,831,587
Total U.S. Department of Commerce $33,074,006
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-25

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF DEFENSE
Procurement Technical Assistance for Business Firms 12.002
Direct Awards:
Executive Department
$148,397
Planning Assistance to States 12.110
Direct Awards:
Executive Department
3,992
Payments to States in Lieu of Real Estate Taxes 12.112
Direct Awards:
Department of Treasury
58,471
Collaborative Research and Development 12.114
Direct Awards:
Southern University and A&M College (Baton Rouge)
10,174
Military Construction, National Guard
12.400
Direct Awards:
Department of Military Affairs
1,063,892
National Guard Military Operations and Maintenance
12.401
(O&M) Projects
Direct Awards:
Department of Military Affairs
19,429,028
National Guard Civilian Youth Opportunities
12.404
Direct Awards:
Department of Military Affairs
7,135,216
Air Force Defense Research Sciences Program 12.800
Direct Awards:
LSU A&M College (Baton Rouge)
29,110
Mathematical Sciences Grants Program 12.901
Through: The Shaw Group
Southern University and A&M College (Baton Rouge)
401,575
Acute Toxicity/RDX 12.DACA 42-02-P-0035
Direct Awards:
University of Louisiana at Monroe
1,280
Construction Skills Job Training Program
12.ACW29-03-C-000
Direct Awards:
Nunez Community College
134,516
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-26

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF DEFENSE (CONT.)
Family Advocacy Program 12.FTPOLK1
Direct Awards:
LSU Agricultural Center
$34,791
Fifth International Conference on Information Fusion 12.DAAD19-02-1-0234
Direct Awards:
University of New Orleans
1,000
Joint Readiness Training Center
12.MIPR2BOPSNN004
Direct Awards:
Department of Military Affairs
216,966
Louisiana Junior Science and Humanities 12.17489
Symposium 2003-2004
Through: Academy of Applied Science
LSU A&M College (Baton Rouge)
10,668
Military Installation Timber Sale Receipts 12.10 USC 2665
Direct Awards:
Department of Treasury
191,603
Monitoring of Habitats Created by Dredging Material During 12.DACW29-28-D-0008
Routine Maintenance of 14 Navigation Channels Operated
and Maintained by the U.S. Army Corps of Engineers
Direct Awards:
University of New Orleans
427,488
RDX Degration Program 12.DACA 42-02-P-0195
Direct Awards:
University of Louisiana at Monroe
8,545
Rear Training Detachment
12.MIPR1AUAL5H015
Direct Awards:
Department of Military Affairs
2,038
Research and Development Cluster:
Procurement Technical Assistance for Business Firms 12.002
Direct Awards:
University of Louisiana at Lafayette
314,441
Collaborative Research and Development 12.114
Direct Awards:
Louisiana Universities Marine Consortium
103,017
Southern University and A&M College (Baton Rouge)
395,885
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-27

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF DEFENSE (CONT.)
Research and Development Cluster: (Cont.)
Basic and Applied Scientific Research 12.300
Direct Awards:
LSU A&M College (Baton Rouge)
$161,652
LSU Health Sciences Center (New Orleans)
107,158
Louisiana Tech University
36,553
Louisiana Universities Marine Consortium
43,520
Southern University and A&M College (Baton Rouge)
290,850
University of New Orleans
507,899
Through: Massachusetts General Hospital
LSU A&M College (Baton Rouge)
289,868
Through: Virginia Polytechnic Institute
LSU A&M College (Baton Rouge)
99,554
Through: Virginia Polytechnic Institute and State University
LSU A&M College (Baton Rouge)
51,744
Military Medical Research and Development 12.420
Direct Awards:
LSU Agricultural Center
5,536
LSU A&M College (Baton Rouge)
140,384
LSU Health Sciences Center (New Orleans)
242,209
LSU Health Sciences Center (Shreveport)
282,592
Louisiana Tech University
3,495
Pennington Biomedical Research Center
816,594
Through: North Dakota State University
LSU A&M College (Baton Rouge)
258,780
Through: Oklahoma State University (#DAMD 170010070)
LSU Health Sciences Center (Shreveport)
8,547
Basic Scientific Research 12.431
Direct Awards:
LSU Health Sciences Center (New Orleans)
572,048
University of New Orleans 56,721
Through: Pennsylvania State University (#2123-LTU-USA-0646)
Louisiana Tech University
58,382
Through: University of Kentucky Research Foundation
LSU A&M College (Baton Rouge)
96,377
Through: University of Rhode Island
LSU A&M College (Baton Rouge)
25,220
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-28

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF DEFENSE (CONT.)
Research and Development Cluster: (Cont.)
Basic, Applied, and Advanced Research in Science 12.630
and Engineering
Direct Awards:
Grambling State University
$122,020
LSU A&M College (Baton Rouge)
146,995
Through: Central Washington University
LSU A&M College (Baton Rouge)
29,254
Air Force Defense Research Sciences Program 12.800
Direct Awards:
LSU A&M College (Baton Rouge)
190,829
Louisiana Tech University
727,341
University of New Orleans
27,493
Mathematical Sciences Grants Program 12.901
Direct Awards:
LSU A&M College (Baton Rouge)
42,157
Research and Technology Development 12.910
Direct Awards:
LSU A&M College (Baton Rouge)
1,414,795
University of New Orleans
673,394
Through: University of Wisconsin - Madison
LSU A&M College (Baton Rouge)
80,494
Apparel Research Network (ARNII) Program 12.RD.unknown
Direct Awards:
University of Louisiana at Lafayette
1,051
An Architecture for Merging the Navy's Tactical 12.RD.N000173-04-1-G904
Environmental Data Services and NATO's Rapid
Environmental Assessment Programs
Direct Awards:
University of New Orleans
29,441
Armed Forces Retirement Home Gulfport Dining Facility 12.RD.N02-SE-0062
Direct Awards:
LSU A&M College (Baton Rouge)
7,301
Basic Scientific Research 12.RD.DAAD19-02-1-0338
Direct Awards:
Louisiana Tech University
258,196
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-29

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF DEFENSE (CONT.)
Research and Development Cluster: (Cont.)
Bioaccumulation and Toxicity of Sediment - Associated 12.RD.DACA42-03-P-0242
TNT to Benthic Fish
Direct Awards:
LSU A&M College (Baton Rouge)
$9,825
Bio-Magnetics Interfacing Concepts: A Microfludic System 12.RD.MDA972-03-C-0100
Using Magnetic Nanoparticles for Quantitative Detection
of Biological Species
Direct Awards:
University of New Orleans
975,978
Carbon-Composite Reinforced Superconducting Microfilm 12.RD.W9113M-04-1-0006
Direct Awards:
LSU A&M College (Baton Rouge)
55,388
Cesium and Lead Dating of Vibracove Samples 12.RD.DACW29-02-P-0288
Direct Awards:
LSU A&M College (Baton Rouge)
20,999
Comparative Analysis to Determine the Appropriate 12.RD.N00033-98-D-8010/251
Frequency of Sea Trials
Through: Seaworthy Systems, Inc. (#PO 057-12-251-UNO1)
University of New Orleans
33,969
Composite High Speed Craft CHSV 12.RD.N00014-03-C-0209
Through: Northrop Grumman Ship Systems (#P5-190020011)
University of New Orleans
19,206
Coordinated Regional Benefit Studies of Coastal 12.RD.A100291/ACCT#1320370
Ocean Observing Systems
Through: Woods Hole Oceanographic Institution
LSU A&M College (Baton Rouge)
18,588
Cumulative Effects of Flood Induced Seepage 12.RD.DACW39-99-C-0028
on Piping Problems
Direct Awards:
LSU A&M College (Baton Rouge)
4,600
Daptive Membrane Masks for Next Generation Lithographies 12.RD.DAAD19-00-1-0434
Direct Awards:
LSU A&M College (Baton Rouge)
(728)
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-30

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF DEFENSE (CONT.)
Research and Development Cluster: (Cont.)
Determination of Partition Constants and Formulations 12.RD.DACW42-03-P-0208
Direct Awards:
LSU A&M College (Baton Rouge)
$89,306
Determination of Physical Traits From DNA 12.RD.N41756-03-C-4063
Direct Awards:
LSU A&M College (Baton Rouge)
217,795
Develop, Coordinate, and Advance the Implementation of 12.RD.IPA-HALE
Water Management Units
Direct Awards:
LSU Agricultural Center
83,704
To Develop Algorithms 12.RD.F33601-02-P-0525
Direct Awards:
LSU A&M College (Baton Rouge)
5,000
The Effects of Habitat Fragmentation on Genetic Viability 12.RD.WP12HZ-01-P-0116
Direct Awards:
University of Louisiana at Lafayette
3,454
Emergent Surveillance Plexus 12.RD.S01-22
Through: Applied Research Laboratory - Pennsylvania
State University
LSU A&M College (Baton Rouge)
15,107
Exploring the Interaction of Implicit and Explicit Processes to 12.RD.00105491-1/C-5-34051
Facilitate Individual Training
Through: University of Missouri - Columbia
LSU A&M College (Baton Rouge)
27,526
Fungal Bioreactor to Treat Volatile Organic Contaminants 12.RD.F08637-01-C-6002
Direct Awards:
LSU A&M College (Baton Rouge)
4,579
Gulf Coast Region Maritime Technology Center 12.RD.N00014-98-2-0010
Direct Awards:
University of New Orleans
6,189,263
Hydrologic Investigation of Low Gradient Watersheds 12.RD.DAAD19-00-1-0413
Direct Awards:
University of Louisiana at Lafayette
30,204
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-31

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF DEFENSE (CONT.)
Research and Development Cluster: (Cont.)
Integrated Structural Building Blocks (ISBB), 12.RD.N00014-03-1-0892
An Initial Investigation
Through: UNO Research and Technology Foundation
University of New Orleans
$85,097
Investigate Damage of Material Under High Energy Impact 12.RD.F33601-03-P-0672
Direct Awards:
LSU A&M College (Baton Rouge)
22,900
Investigation of Nanophase Materials for 12.RD.DAAD19-99-1-0001
Thermoelectric Application
Direct Awards:
University of New Orleans
103,320
IPA - Air War College (Lamar) 12.RD.unknown
Direct Awards:
University of Louisiana at Lafayette
353
IPA Lafayette Parish Flood Study 12.RD.unknown
Direct Awards:
University of Louisiana at Lafayette
6,078
Kazakh Anthrax GIS Project 12.RD.NP-2004-07-DT
Through: U.S. Civilian Research and Development Foundation
LSU A&M College (Baton Rouge)
4,680
Keesler Air Force Base (Fixed Price Contract) 12.RD.F22600-03-P-0274
Direct Awards:
LSU Health Sciences Center (New Orleans)
40,000
LYTIC- Peptide Conjugates for Treatment of Metastases 12.RD.DAMD17-03-1-0150
Direct Awards:
Pennington Biomedical Research Center
105,556
Military Health Behaviors - Promotion of Healthy Weight 12.RD.DAMD17-03-2-0030
Management in Career Personnel
Direct Awards:
Pennington Biomedical Research Center
812,068
Modeling Impact Damage in Fighting Vehicle 12.RD.M67854-03-M-6040
Direct Awards:
LSU A&M College (Baton Rouge)
100,000
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-32

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF DEFENSE (CONT.)
Research and Development Cluster: (Cont.)
Multifunctional Materials, Structures, and Sensors 12.RD.DAAD19-03-200016
(Center for Nanosciences and Nanomaterials)
Through: North Carolina Agriculture and Technical State
University (#441221C)
University of New Orleans
$294,368
Naval Metrology and Oceanography Command 12.RD.unknown
IPA Agreement (Gary Jenkins)
Direct Awards:
University of New Orleans
52,653
NERC Task 1.2.8 Electric Ship Integration - 12.RD.N00014-02-1-0623
Podded Propulsors
Through: Advanced Technology Institute (ATI) (#2003-352)
University of New Orleans
45,562
Partial Support of the 61st Annual Physical 12.RD.DAAD19-01-1-0665
Electrics Conference
Direct Awards:
LSU A&M College (Baton Rouge)
7,350
Phase 0: Feasibility Study for ARN Balanced Flow 12.RD.unknown
NOMEX Supply Chain
Direct Awards:
University of Louisiana at Lafayette
84,086
Progressive Analysis Framework for Seismic Design 12.RD.DACA42-03-P-0115
Direct Awards:
LSU A&M College (Baton Rouge)
88,383
Reliability and Maintenance Cost Reduction for 12.RD.N00014-03-M-0311
LCAC Activators
Through: UNO Research and Technology Foundation
(#58531-S1)
University of New Orleans
19,706
Restructuring Complex Program Fragments Into Smaller 12.RD.MDA904-96-C-0301
Cohesive Units
Direct Awards:
University of Louisiana at Lafayette
68
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-33

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF DEFENSE (CONT.)
Research and Development Cluster: (Cont.)
SBIR - Ship Motion and Human Accommodation: 12.RD.N00178-03-C-1065
Readiness and Performance; The SHARP Tool
Through: Carlow International Inc. (#N00178-03-C-1065)
University of New Orleans
$24,346
Scalable Computations for Non-Isothermal Composite 12.RD.DAAD19-02-D-0001
Materials Process Modeling and Simulations of the
Army Future Combat Systems Platform
Through: UNO Research and Technology Foundation (Batelle)
(#58516)
University of New Orleans
17,643
Signal Processing, Scattering, and Modeling Studies for 12.RD.N00014-95-1-G922
Underwater Acoustics and Seafloor Geophysics
Direct Awards:
University of New Orleans
171,041
Southern Division, Naval Facilities Engineering Command 12.RD.N624467-03-RP-00093
Survey of Invasive and Exotic Species at NASJRB
Direct Awards:
University of New Orleans
29,713
Space and Naval Warfare Systems Command 12.RD.G207T00BGD0070
Information Technology Center Workforce Learning Community
Through: UNO Research and Technology Foundation
Science and Engineering Associates (#S721-40)
University of New Orleans
686,962
Status and Challenges of Socioeconomic Research 12.RD.940125118
Direct Awards:
LSU Agricultural Center
9,113
A Study of the Air Emissions of Organic Compounds 12.RD.DACW42-03-P-0203
Direct Awards:
LSU A&M College (Baton Rouge)
21,531
SURA - Scoop Modeling Grid Initiative: LSU Phase I 12.RD.SURA-2004-106
Through: Southeastern Universities Research Association
LSU A&M College (Baton Rouge)
17,530
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-34

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF DEFENSE (CONT.)
Research and Development Cluster: (Cont.)
Wind Tunnel Measurements of Chemical Volatilization 12.RD.DACW42-03-P-0211
Direct Awards:
LSU A&M College (Baton Rouge)
$55,427
Total Research and Development Cluster
19,429,084
Total U.S. Department of Defense $48,737,834
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Manufactured Home Construction and Safety Standards 14.171
Direct Awards:
Executive Department
$68,386
Federally Assisted Low-Income Housing Drug Elimination 14.193
Through: Housing Authority of New Orleans
Department of Military Affairs
26,911
Community Development Block Grants/Entitlement Grants 14.218
Direct Awards:
Southern University and A&M College (Baton Rouge)
31,934
Community Development Block Grants/State's Program 14.228
Direct Awards:
Executive Department
36,302,560
Emergency Shelter Grants Program 14.231
Direct Awards:
Department of Social Services
1,543,298
Supportive Housing Program 14.235
Direct Awards:
Mental Health Area A
55,738
Mental Health Area B
145,171
Southeastern Louisiana University
142,502
Total Supportive Housing Program
343,411
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-35

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (CONT.)
Historically Black Colleges and Universities Program 14.237
Direct Awards:
Southern University and A&M College (Baton Rouge)
$107,195
Southern University at New Orleans
23,170
Through: Housing Authority of New Orleans
Southern University at New Orleans
(60)
Total Historically Black Colleges and Universities Program 130,305
Shelter Plus Care 14.238
Direct Awards:
Department of Health and Hospitals
577,281
Housing Opportunities for Persons With AIDS 14.241
Direct Awards:
Office of Public Health
845,048
Opportunities for Youth - Youthbuild Program 14.243
Direct Awards:
Louisiana Technical College
431,072
Community Development Block Grants/Brownsfields 14.246
Economic Development Initiative
Direct Awards:
Nicholls State University
7,075
Fair Housing Assistance Program - State and Local 14.401
Direct Awards:
Department of Justice
289,460
Community Outreach Partnership Center Program 14.511
Direct Awards:
LSU A&M College (Baton Rouge)
105,225
Computer Literacy 14.LA62HD
Direct Awards:
Southern University at Shreveport-Bossier City
12,761
Housing and Urban Development 14.FR4723
Direct Awards:
Southern University at Shreveport-Bossier City
134,859
(Continued)
See accompanying Notes to the Schedule of Expenditures of Federal Awards.
A-36

Appendix A
STATE OF LOUISIANA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2004
CFDA
OR OTHER
NUMBER ACTIVITY
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (CONT.)
Fair Housing Outreach Program 14.105200059A
Through: Advocacy Center
LSU Health Sciences Center (New Orleans)
$30,499
Research and Development Cluster:
Early Doctoral Student Research Grants 14.517
Direct Awards:
LSU A&M College (Baton Rouge)
7,643
EDI Special Projects Program 14.RD.B-01-SP-LA-0229
Direct Awards:
University of New Orleans
105,952
National Center for the Revitalization of Central Cities 14.RD.B-00-SP-LA-0153
Direct Awards:
University of New Orleans
7,324
Total Research and Development Cluster
120,919
 
Total U.S. Department of Housing
  
and Urban Development
$41,001,004
U.S. DEPARTMENT OF THE INTERIOR
Regulation of Surface Coal Mining and Surface 15.250
Effects of Underground Coal Mining
Direct Awards:
Department of Natural Resources
$151,256
Abandoned Mine Land Reclamation (AMLR) Program 15.252
Direct Awards:
Department of Natural Resources
165,584
Clean Vessel Act
15.616
Direct Awards:
Department of Wildlife and Fisheries
135,980