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1 . 'r,.-(. RECEIVED "'-"I,'L/',TIVE AUDITOR 1999DEC29 AMII "20 V O LU N TEER S A SSO C IA TIO N "NEW O R LE AN S L O U IS1A N A JU N E A N D 1998.Jnoer pro'clstt)r~,~of srata lar~,int~ report is a Oubi!c docom ~ t. A copy oft~bl;ropot;t~-~:~3.:~iisl~bm lt. ted to t~,.,a~:~1:t~d,~.r.:'r<iv(,3weel, e~tity ~.r,,.t cf!:~t"zi.',~;r~p~:hl;-e,;:ubl~c oficials."l;m ~-~;~r:r~is a~::~i!ak!e for public in-h'~,'.-,';-}c,n a,t the Baton Rouge of;ce,;~~h, L~.,pj~atNe Audi. totand,whe~'e ~ :,;,tepri~,stthe office ofthe parish cie~t:6fcourt

2 IN D E PEN D EN T A U D ITO R S'R EPO R T FIN A N C IA L STA T E M E N T S Exhibit"A " Statem ents of FinancialPosition E xhibit"b " Statem ents of A ctivities Exhibit"C " Statem ents of FunctionalExpenses E xhibit"d " Statem entsof C ash Flow s N otesto FinancialStatem ents

3 E ricksen, K rentel, C anton & L aporte, L.L.P. C E R 1 1F I[ D P U B t lc A C C O U N I A N I S & c o N S U tt A N I S 4227 CANALSIREE1 N ew O RLEANS,LOUISIANA TEtEPUONE(504} FAX(504) E-M ailekcl@ekclcpa.com IN D EPE N DE N T A U D ITO R S'R EPO R T FAB~J.CANTON* J,~EsE.LAPoRtE* RICHARD@.M UHIFR KRONAIDH.DAWSON,JR* EVIN M N[YReY CLAUDEM.StLVERMAN* KENNETHJ,ABNEY* W.ERIC PovvtRs ~PeorESSONA~CORPO~AllON JBeNJ,WdNJ.ERICKSEN Retired 1998).V.[CtER[KR~NIE[Relired 1993) RONALr)H.ACKE~,WNN Retired 995 To the B oard of D irectors Com m unity V olunteersa ssociation W e have audiled the accom panying statem entsof financialposition of Connnunity V olunteers Association (anonprofitorganization)asofjune30,1999 and 1998,andtherelated statements & activities,functionalexpenses,and cash flow sforthe yearsthen ended. These financial statem entsare the responsibility of Com m unity V olunteersa ssociation'sm anagem ent. O ur responsibility isto expressan opinion on these financialstatem entsbased on ouraudit. W c conducted our auditin accordance w ith generally accepted auditing standards,the Louisiana G overnm entala uditg uide and G overnm enta uditing Standards,issued by the Com ptroller G eneraloftheu nited States. Those standards require thatw e plan and perform the auditto obtain reasonable assurance aboutw hetherthe financialstatem entsare free of m aterial m isstatem ent. An auditincludesexam ining,on a testbasis,evidence supporting the am ountsand disclosuresin the financialstatem ents. A n auditalso includesassessing the accounting principles used and significantestim atesm ade by m anagem ent,asw ellasevaluating the overallfinancial stalem entpresentation.w e believe thatourauditprovidesa reasonable basisforouropinion. In ouropinion,the financialstatem entsreferred to above presentfairly,in allm aterialrespects, tim financialposition of Com m unity V olunteersa ssociation asof June 30,1999 and 1998,and lhe changesin itsnetassetsand itscash flow sforthe yearsthen ended in conform ity w ith generally accepted accounting principles. In accordance w ith Governm entauditing Standards,w e have also issued a reportdated N ovem ber30,1999 on ourconsideration of the Com m unity V olunteersa ssociation'sinterna controlstructure and on itscom pliance w ith law s and regulations. N ovem ber L op Certified Public A ccountants

4 E xhibit"a " C O M M U N ITY V O L U N T E E R S A SSO C IA TIO N STA TEM EN TS OF FIN AN CIAL PO SITION JU N E AN D C U R R E N T A SSE T S Cash T otalcurrentassets $ 55,452 57,277 55,452 PR O PE R TY A N D E O U IPM EN T : Furniture and equipm ent Less: accum ulated depreciation N etproperty and equipm ent (23,261_) ,816 (19,027) 7,789 Totalassets $ ~~,69 ~832 _$._ 63~24t LIA BIL ITIES A N D N ET A SSETS C U R R E N T L IA B IL IT IE S: A ccountspayable Payrolltaxespayable $ $ 1, _463 Totalcurrentliabilities 1,849 4,401 U nrestricted Totalliabilitiesand netassets _ ~ ~8 32 L ~-- 63~241 See accom panying N O TE S T O FIN A N C IA L STA TEM EN T S

5 E xhibit"b " C O M M U N IT Y V O L U N TEER S A SSO C IA TIO N STA TEM EN T S O F A CTIVITIE S FO R TH E Y E A R S EN D ED JU N E A N D 1998 SU PPO R T A N D O TH ER R E V E N U E Support Interestincom e O therincom e Totalunrestricted supportand otherrevenue E X PEN SE S: 326,197 $ 2, _ ,000 3, L23_6 Program services Supporting services: G eneraland adm inistrative Totalexpenses Increase in unrestricted netassets B eginning unrestricted netassets,asrestated Ending unrestricted netassets 271, ,940 56,472 51, , _ , ,319 $ 5 _ 8 _.~8 a $.5_8.840 See accom panying N O TES TO FINA N C IA L STA TEM EN TS

6 Exhibit"C ' C O M M U N ITY V O LU N TEER S A SSO C IA TIO N STA TEM EN T OF FUN CTION AL EXPEN SES 0 Program Services Supporting Serv ices G eneraland A dm inistrative Total Salaries Payrolltaxes 55,912 $ 8,578 $ 64,490 5, ,553 Totalsalariesand related expenses 61,720 9,323 71,043 A ccounting A dvertising C ontractualservices Legal M iscellaneous N ew sletter O ffice O ther Postage Photography Program s R ent-ofi ce R epairsand m aintenance Telephone Transport ation Travel 5,000 9,000 5,000 1, ,045 2,666 9,000 10,000 9,000 2, ,769 1,080 1,496 8, ,000 5,000 18,000 2, ,000 7,769 1,080 1,496 1, ,045 8, ,333 9, Totalexpensesbefore depreciation and am ortization 271,731 52, ,970 D epreciation of property and equipm entand am ortization of organizationalcosts Totalexpenses 4,233 _ 4,233 $_ 271j 3~ $ fi~472 $ ) See accom panying N O TE S TO FINA N CIA L STA TEM EN TS

7 E xhibit"c " C ont C O M M U N ITY V O LU N T EER S A SSO C IA T IO N STA TEM EN T O F FU N CTION A L EX PEN SE S FO R TH E Y E A R EN D E D JU N E Program Services Supporting Services G eneraland A dm inistrative Total Salaries Payrolltaxes W orkm an's com pensation insurance 72,231 4, $ 12,621 84,852 2,416 7, Totalsalariesand related expenses 77,188 15,207 92,395 A ccounting A dvertising Legal M iscellaneous O fi ce O ther Postage Photography Program s R ent-ofi ce R epairs and m aintenance Telephone Transportation Travel 5,000 1, ,149 2,238 9,000 7,100 2,500 1,325 5,912 1,040 2,614 8, ,100 5,000 2,500 1,325 5,912 1,040 2,614 1, ,149 8, ,798 9,000 42O Totalexpensesbefore depreciation and am ortization 316,940 45, ,959 D epreciation of property and equipm entand am ortization of organizationalcosts Totalexpenses ,7~56 ~, ~ 316~240 ~ $_~ _:3~ 7,!~ See accom panying N O TE S T O FIN A N C IA L STA TEM EN T S

8 E xhibit"d C O M M U N ITY V O LU N TEER S A SSO C IA TIO N STATEM ENT S OF CA SH FLOW S FO R TH E Y EAR S EN D ED JIJN E AN D 199g C A SH FL O W S FR O M O PE R A T IN G A C T IV IT IE S Increase in netassets D epreciation and am ortization Adjustmentsto reconcilechangein netassetsto netcash provided by operating activities: D ecrease in payables N etcash provided by operating activities N etincrease in cash C ash,beginning of year C ash,end of year 143 $ 4,233 6,521 6,756 (2,551) (753) ,524 1,825 12, , Z7 $..5~A ~2 See accom panying N O TE S TO FIN A N C IA L STA TEM EN TS

9 C O M M UN ITY V O LU N TEER S A SSO CIA TIO N N O TES TO FIN AN CIAL STATEM EN TS JU NE AND 1998 (1) NA TUR E O F A C TIV ITIES A N D SU M M A R Y O F SIG N IFICA N T A C C O U N TIN G PO L IC IE S TheCommunity VolunteersAssociation (theassociation)ischartered in thestateof Louisiana asa non-profitcorporation. The A ssociation w asorganized forthe follow ing purposes: To adm inisterprogram sforhigh-risk youth thatuse strategies to im prove skillsof such youth,such aseducationalcounseling and job skilstraining; 2 3 To develop and im plem entnew strategiesto com municate anti-drug m essagesto youth;and To im plem entvariousothercom m unity-based program sto assisthigh-risk youths asneeded. A llof the activitiesw illbe carried outunderan agreem entw ith the G overnor'sofi ce of U rban Afairsand D evelopm entvia the State of Louisiana. Itscurrentprogram sinclude After~ehnolTutorial/CulturalEm'ichm en Studentprofile perform ancesin N ew O rleanspublic schoolsindicate under achievem ent,low standardized testscores,low self-esteem and in som e caseshigh absenteeism. A need existsto im prove studentm otivation to succeed in school. Such im provem entcan be accom plished through afterschooltutorialand cultural program s.enrichm entin academ icsand exposure to culturalactivitiesw ere ofered to enable studentsto reach goalsotherw ise unattainable. CnnfllefV iolence/d ru~ Intervention The D ru g Free Club addressesdra g abuse prevention by presenting positive alternativesand resourcespriorto the yearsw hen problem soccur. The idea isto reach children w ith preventive m easuresratherthan having to cure already existing problem s. "/'he goalof the V iolence Interv ention Program isto prom ote positive self-im age and self w orth,respectforself and othersand a w orking know ledge of the correct and appropriate m annerof dealing w ith crisissituationsand conflicts.

10 C O M M UN ITY V O LU N TEER S A SSO CIA TIO N NOTES TO FINANCIAL STATEMENTS (CONTINUED) JU N E A N D 1998 (1) L I Com m unity O utreach A N T Com m unity O utreach Program w asdesigned to equip the targetpopulation w ith variousavenuesby w hich they can obtain pertinentinform ation to im prove living situations.h ealth Education,Environm entalaw areness,job Training and Com m unity Inform ation Sem inarsare provided to enhance the quality of life for comm unity m em bers. Y outh Job Training Job Training program offersem ploym entskillstraining,entrepreneurship training, and career and personalcounseling through w orkshops. Cam n Enhancem entsum m erprogram s Cam p Enhancem entsumm erprogram w asa collaboration betw een Com m unity V olunteersa ssociation and area sum m ercam psto provide academ ic enrichm ent, culturalaw areness and recreationalactivitiessuch assw im m ing to atrisk youth. SeniorCare C om m uni ty V olunteersa ssociation'ssenior Care Program seeksto addressthe needsof the elderly,w ho qualify,by offering servicesthatenh ance the quality of life and socialand culturalaw areness. B asisof A eeountine The accrualbasisof accounting isfollow ed by the A ssociation. C ash Cash consistsof fundsm aintained in savingsand bank accounts Prooertv and E ouiom c Property and equipm entare carried atcost. Additions,im provem ents,and betterm entsto property and equipm entin excessof $500 are capitalized. D epreciation iscalculated over an estim ated usefullife of five yearsusing the straight-line m ethod. D epreciation expense forthe yearsended June 30,1999 and 1998 w as$4,233 and $5,363,respectively.

11 C O M M UN ITY V O LU N TEERS A SSO CIA TIO N NOTES TO FINANCIAL STATEM ENTS (CONTINUED) JU N E A N D 1998 (1) N A T U R E O F A C TIV IT IE S A N D SU M M A R Y O F SIG N IF IC A N T A C C O U N TIN G Costsincidentto the creation of the A ssociation have been capitalized asorganizational costsand are being am ortized over sixty m onthson a straight-line basis. A tjune 30, 1999,organizationalcostsw ere fully am ortized. Totalam ortization for the yearended June 30,1998 w as$1,393. Sunnortand R evenues Support and revenuesare recognized w hen earned Contributionsare considered to be available forunrestricted use unlessspecifically restricted by the donor or the board of directors. Expensesare charged directly to program servicesorsupporting servicesin general categories based on specific identification. Indirectexpenses have been allocated based on a percentage of directexpenses,as determ ined by the grantoragency. The preparation of financialstatem entsin conform ity w ith generally accepted accounting principlesrequiresm anagem entto m ake estim ates and assum ptionsthatafectcertain reported am ountsand disclosures. A ccordingly,actualresultscould diferfrom those estim ates. The A ssociation expensesallnondirect-response advertising costs asincurred. Forthe yearsended June 30,1999 and 1998,advertising coststotaled $5,000 in each year. TheAssociation isexemptfrom federalincometaxesundersection 501(c)(3)of the InternalR evenue Code and isnotconsidered a private foundation.

12 C O M M U N ITY V O LU N TEER S A SSO C IA TIO N NOTES TO FINANCIAL STATEM ENTS (CONTIN UED) JU N E A N D 1998 Supportiscom prised of grantrevenuesreceived underan agreem entw ith the G overnor's Office of U rban Affairsand D evelopm entof the State of Louisiana.Forthe yearsended June 30,1999 and 1998,revenuesfrom thisgranttotaled $326,197 and $364,000, respectively. (3) C O N C EN TR A ~ O N S The A ssociation m aintainscash balancesatone financialinstitution.a ccountsatthe institution are insured by Federalgovernm entalagenciesup to $100,000. A tjune and 1998,there w ere no uninsured cash balances. (4) E C O N O M IC D EPEN D EN C Y The A ssociation derives a m aterialpart of itsrevenues from a grantadm inistered by the G overnor'sofi ce & U rban Affairsand D evelopm ent.forthe yearsended June 30,1999 and 1998,revenuesfrom thissource totaled $326,197 and $364,000,respectively. The A ssociation leases a copierunder an operating lease. The lease term is 24 m onths beginning in M arch,1999. Rentexpense related to thislease w as $1,826 forthe yearended June 30,1999.Future obligations over the prim ary term sof the lease asof June 30,1999 are: Y ear $ 4,724 3,150 Total

13 E ricksen, K rentel, C anton & L aporte, L.L.P. C ERIIFIED PU BLIC A C C O U N IA N IS & C O N SU i1a N IS,4227 C ANA~Sltttl ]Et~PHON~(504} FAX(504 N tw O m~ans,louisiana E-M oilekcl@ekclcpa.com R EPO R T O N C O M PLIA N C E A N D O N IN TER N A L C O N TR O L O V ER FIN A N C IAL R EPO R TIN G BA SED O N A N A UD IT O F FIN A N CIA L STA TEM ENTS PER FO R M ED IN A C C O R DA N C E W ITH G O VERNM EN T A UDITIN G STAN DARDS JFA~IOJ.CAN1ON* A,V~SE.14PoRt[* RIO~ARDG.M UnIrR ROK~,D H DAWSON,JR* KEVIN M N[YR~Y CLAUDEM SlIVER/CAN* KFNNETflJ,ABNEY* W.Eepc Pou Rs *P~OFESSIONAICORRORAIlON BeNJ,'W~NJ.ERIcKs[N/Re~ired1998),I.V.LECtEREK~NTEt{Relired 1993) RONA~DH AcKrRt~NN IRetired 1995 To the Board of D irectors C om m unity V olunteers A ssociation W e have audited the financialstatem entsof Com m unity V olunteersa ssociation asof and forthe yearended June 30,1999,and have issued ourreportthereon dated N ovember30,1999.w e conducted ourauditin accordance w ith generally accepted auditing standards,the Louisiana G overnm entala uditg uide,and the standards applicable to financialaudits contained in G overnm entauditing Standards,issued by the Com ptrollerg eneralof the U nited States. C om pliance A spartof obtaining reasonable assurance aboutw hethercom m unity V olunteersa ssociation's financialstatem entsare free of m aterialm isstatem ent,w e perform ed testsof itscom pliance w ith certain provisionsof law s,regulations,contractsand grants,noncom pliance w ith w hich could have a directand m aterialefecton the determ ination of financialstatem entam ounts. H ow ever, providing an opinion on compliance with those provisionswasnotan objective of ourauditand, accordingly,w e do notexpresssuch an opinion. The resultsof ourtestsdisclosed no instancesof noncom pliance thatare required to be reported underg overnm enta uditing Standard~'. InternalC ontrolo verfinancialr enortino In planning and perform ing ouraudit,w e considered Com m unity V olunteersa ssociation's internalcontroloverfinancialreporting in orderto determ ine ourauditing proceduresforthe purpose of expressing ouropinion on the financialstatem entsand notto provide assurance on the internalcontroloverfinancialreporting. O urconsideration of the internalcontroloverfinancial reporting w ould notnecessarily disclose allm attersin the internalcontroloverfinancialreporting thatm ightbe m aterialw eaknesses. A m aterialw eaknessisa condition in w hich the design or operation of one orm ore of the internalcontrolcom ponents does notreduce to a relatively low levelthe risk thatm isstatem entsin am ountsthatw ould be m aterialin relation to the financial statem entsbeing audited m ay occurand notbe detected w ithin a tim ely period by employeesin the norm alcourse of perform ing theirassigned functions. W e noted no m attersinvolving the internalcontroloverfinancialreporting and itsoperation thatw e considerto be m aterial w eaknesses.

14 Ericksen,K rentel,c anton & LaPorte,L.L.P. To the B oard of D irectors C om m unity V olunteers A ssociation N ovem ber30,1999 Page 2 Thisreportisintended solely forthe inform ation and use of the auditcom m ittee,m anagem entand the Louisiana Legislative A uditor,and isnotintended to be and should notbe used by anyone otherthan these specific parties. N ovem ber30,1999 C ertified Public A ccountants

15 C O M M UN ITY V O LU N TEER S A SSO CIA TIO N SCHEDULE OF FINDINGS AND QUESTIONED COSTS FO R TILT.Y E AR EN D E D JU N E W e have audited the financialstatem entsof Com m unity V olunteersassociation asof and forthe yearended June 30,1999,and have issued ourreport thereon dated N ovem ber30,1999. W e conducted ourauditin accordance w ith generally accepted auditing standardsand the standards applicable to financialauditscontained in Governm entauditing Standards,issued by the C om ptrollerg eneralof the U nited States. O urauditof the financialstatem entsasof June 30, 1999 resulted in an unqualified opini on. SEC TIO N I SUM M A R Y O F A U D ITO R S'R EPO R TS a. R eport on InternalControland Com pliance M aterialto the FinancialStatem ents InternalC ontrol M aterialw eaknesses Y es X _ N o _ R eportable Conditions Y es X N o Com pliance Com pliance M aterialto FinancialStatem ents Y es X N o b. FederalAw ards N ota pplicable Intern alc ontrol M aterialw eaknesses Yes N o R eportable Conditions Y es N o Type of O pinion on Com pliance U nqualified Qualified form ajorprograms Disclaimer_ Adverse _ Are theirfindingsrequired to be reported in accordance w ith CircularA -133,Section.510(a)? Yes No c. Identification ofm ajorprograms: NotApplicable CFDA Number(s) Nameof FederalProgram (orcluster)

16 C O M M U N IT Y V O LU N TEER S A SSO C IA TIO N SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FO R TH E Y EA R EN D E D JU N E D ollarthreshold used to distinguish Type A and Typ e B Program s $ Isthe auditee a 'low -risk'auditee,asdefined by OM B CircularA Y es _ ~ _ N o N ota pplicable SEC TIO N IIFIN A N CIA L STA TEM EN T FIN D IN G S N one

17 C O M M UN ITY V O LUN TEER S A SSO CIA TIO N SCH ED ULE OF PR IOR YEAR FIND IN G S FO R TH E Y E A R E N D ED JlIN E 30_1999 SE C TIO N 1 IN TE R N A L C O N TR O L A N D C O M PLIA N C E M A TER IA L T O TH E FINA N CIA L STA TEM EN TS N one SEC TIO N II IN TERN A L C O N TR O L A ND C O M PLIA N CE M A TER IA L TO FEDERA L A W A R D S N ota pplicable SEC TIO N Ill M A NA G EM EN T LETTER ED P B a W e suggestthatm anagem entdevelop a disaster recovery plan thatincludes, butis not lim ited to,the follow ing m atters: Location of,and accessto,ofsite storage A listing of alldata filesthatw ould have to be obtained from the ofsite storage location. Identification of abackup location (nameand telephonenumber)with similaror compatible equipmentforemergency processing (M anagementshould make arrangem entsforsuch backup wi th anothercom pany,a com putervendor,ora service center. The agreem entshould be in w riting. ) R esponsibilitiesof variouspersonnelin an em ergency. Priority of criticalapplicationsand reporting requirem entsduring the em ergency period. Thisissue hasbeen resolved by m anagem entand isnotan issue forthe yearended June 30, Y ear2000 W e m ade the follow ing suggestionsto m anagem entregarding Y ear2000 issues Identifying and assessthe Y ear2000 issuesrelating to hardw are and softw are in use. D evelop a tim etable forresolving the issues. Assign adequate personnelto resolving the issue. M onitoreffortsto resolve the issues. Thisissue hasbeen resolved by m anagem entand isnotan issue forthe yearended June 30, 1999

C ITY O F R EFU G E D R U G A N D R EH A BIL ITA TIO N C EN TE R,IN C,

C ITY O F R EFU G E D R U G A N D R EH A BIL ITA TIO N C EN TE R,IN C, + 0 ~IICIAl 1I [ (:O PY bonoi~[pioou~