A V O Y E L L E S C O U N C IL O N A G IN G,IN C. M arksville,l ouisiana FIN AN C IA L STA TE M E N T S A ND A U D IT O R S'R E PO R T S

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1 A V O Y E L L E S C O U N C IL O N A G IN G,IN C. M arksville,l ouisiana FIN AN C IA L STA TE M E N T S A ND A U D IT O R S'R E PO R T S!

2 mem BER AJ~ERICAN INSTITUTEOf CERTIFIED PtJgtIC ACCOUNTANTS D A U Z A T,B E A L L & D E B E V E C,C PA s ME,deER ~C~.J ET~ OfLOUISIANA CERTIFIED PUBLIC ACCOUNTANTS A PRO F'ESSIO N AL CO RPO RAl"IO N State of Louisiana Legislative A uditor'so fi ce M s.suzanne Elliott P.O.Box Baton Rouge,La RE: FiscalYear A udits: A voyellesc ouncilon A ging,inc. Catahoula Councilon A ging,inc Concordia Councilon A ging,inc D earm s.elliott: Ipreviously subm ited corrected pageson the above referenced auditsthatdisclosed corections. Please find enclosed com plete unbound revised copiesof the auditsasrequested by yourofice. Enum erated below are the changesm ade: A vovelles C ouncilon A ~,in~.inc The opinion expressed on the accom pan ying schedule of expenditures of Federal aw ar dsw asinadvertantly leftout. The Com par ative Schedule of G eneralfixed A ssets,page 33 waschan ged to corectth e botom half of the schedule w hich reported prioryear figuresin eror. 2. Catahoula Councilon A ~ing,inc A reclassification of $202 in Title III-E of page 23 was m ade. This reclassification resulted in pages 4,6,and 26 to be revised. (Cont'd) Z20 W INDSO R PLA CE *ALEXANDRIA. LOUISIANA 71 0J~ (~18) ~FAX (318)445-Z017

3 D auzat,beall,& D ebevec,cpa s,apc P~ e 2 Concordia Cotm cilon A ~in~,.inc A reclassification of $71in Title IIC-Iand $57 in Title IIIC-2 on page 24 was m ade.these reclassificationsresulted in pages 4,6,26,and 27 to be revised. Respectfully subm itted, D auzat,beall,& D ebevec,cpa s,apc Patti D auzat,cpa

4 A V O Y ELLES C O UN CIL O N A G IN G,IN C. M A RK SVILLE,LO UISIAN A FIN AN C IAL STA TEM E N TS AND A U D ITO RS'R EPO R T S FO R TH E FISCA L YEAR END ED JUN E 30,2003 TA BLE O F C O N TEN TS E xhibit Page IndependentA uditors'report FIN AN C IA L STA TEM EN TS Com bined Balance Sheet-A llfund Types an d A ccountgroup Com bined Statem entof Revenues,Expendituresand Changesin Fund B al an ces-a llg overn m ental Fund Typ es Statem entof Revenues,Expenditures and Changesin Fund Balan ces-budgetan d A ctual - G eneral Fun d Sta tem entof R evenues,expendituresand Changes in Fund Balan ces-budget(gaap Basis)and A ctual-specialrevenue Fund A B C D N otes to FinancialStatem ents A D D ITIO N A L IN FO RM A TIO N Schedule Com bining Schedule of Program Revenues, Expendituresan d Chan gesin Fun d Bal ances G eneralfun d Com bining Sta tem entof Revenues,Expenditures and Chan gesin Fun d Balan ces-special Revenue Funds 2

5 A V O YE LLES C O UN C IL O N A G IN G,IN C. M ARK SVIL LE,LO U ISIAN A FIN AN CIA L STA TEM EN TS A ND A U D ITO R S'R EPO R TS FO R TH E FISCA L Y EA R END ED JU N E 30,2003 Schedule of Program Expenditures-Budgetvs. A ctual Com parative Schedule of G eneralfixed A ssets and Changesin General Fixed A ssets Schedule of Expenditures of Federal A w ards Other ReportRequired by Governm entauditing Standards Reporton Com pliance an d on InternalControlover Finan cialreporting Based on an A uditof Finan cial Statem ents Perform ed in A ccordance w ith G overnm ent A uditing Standards Report on Com plian ce w ith Requirem ents A pplicable to Each M ajorprogram an d Intern al Controlover Com plian ce in A ccordan ce w ith O M B Circular A -133 Schedule of Findingsan d Questioned Costs Schedule of PriorY ear A uditfindings

6 MEM BER AM ERICAN INSTITUTEOf CERTIFIED PUBLIC ACCO U N'fANTS D A U Z A T,B E A L L & D E B E V E C, C PA s MEMBER SOCI[I~ OFLOUISIANA CERTIFIEO PUBLIC ACCOUNTANTS A PROFESSIONAL CO RPO RATIO N N D EPEN D ENT A UD ITO R S'RE PO R T Board of D irectors A voyellescouncilon A ging,inc M arksville,louisiana W e have audited the accom panying generalpurpose financialstatem entsof A voyellescouncilon Aging,Inc.,(a non-profit,quasi-publicorganization)asofand forthe yearended June 30,2003,as listed in the table of contents.these generalpurp ose financialstatem entsare the responsibility of the C ouncil's m anagem ent. O urresponsibility isto expressan opinion on these generalpurp ose financialstatem entsbased on ouraudit. W e conducted ourauditin accordance w ith generally accepted auditing standards in the U.S.and the stan dards applicable to the finan cialauditscontained in Governm entauditingstandards,issued by the Com ptrollerg eneralof the United States.Those standardsrequire thatw e plan and perform the auditto obtain reasonable assurance aboutw hetherthe generalpurp ose financialstatem entsare free of m aterialm isstatem ent.a n auditincludesexam ining,on a testbasis,evidence supporting the am ounts and disclosures in the generalpurp ose financial statem ents. A n audit also includes assessing the accounting principlesused and significan testim atesm ade by m anagem ent,asw ellas evaluating the overallgeneralpurp ose finan cialstatem entpresentation. W e believe thatouraudit provides a reasonable basisforouropinion. In our opinion,the generalpurpose financialstatem ents referred to above present fairly,in all m aterialrespects,the financialposition of A voyellescouncilon A ging,inc.,asof June 30,2003, and the results of its operations forthe yearthen ended in confom aity w ith generally accepted accounting principles. In accordance w ith G overnm entauditing Standards',w e have also issued ourreportdated N ovem ber 7,2003,on ourconsideration of the C ouncil'sinternalcontroloverfinancialreporting and ourtest of itscom pliance w ith certain provisionsof laws,regulations,an d contracts. 2Z0 W INDSO R PLACE * ALEXA NDRIA, LOUISIANA *(318) ~FAX (318)445 -Z017

7 O ur audit w as m ade for the purpose of form ing an opinion on th e generalpurpose financial statem ents taken as a whole. The supplem entary inform ation on pages 24 through 32 is nota required partof the general purpose finan cialstatem entsof th e A voyellescouncilon A ging,inc., butis supplem entary inform ation required by the Governm ental Accounting Stan dards Board.W e have applied certain lim ited procedur es,which consisted principally of in quiries of m anagem ent regardin g the m ethods of m easur em ent an d presentation of the supplem entary inform ation. H ow ever,w e did notauditth e inform ation and expressno opinion on it. The accom panying schedule of expendituresof federal aw ardsispresented for purposesof additional analysis asrequired by U.S.O ffice of M anagem entan d BudgetCircular A -133,A udi ts of States, Local G ovem rnents,an d N on-profitorganizations,an d is nota required partof the general-purpose financial statements.such inf ormation hasbeen subjected to the auditing procedur esapplied in the auditof th e general -purpose financialsta tem entsan d in our opin ion,isfairly sta ted,in al lm aterial respects,in relation to th e general-purpose finan cialsta tem ents taken as a w hole. Certified Public A ccountants N ovem ber7,2003

8 AVOYELLES COUNCIL ON AGING,IN C. M arksville,louisiana EXH IBIT A COM BIN ED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS Ju~e 30,2003 W ITH COM PARATIVE TOTALS FOR TH E YEAR ENDED dune 30,2002 Special Revenue G eneral Totals GeneralFixed Long-Term (Memorandum Only~ A ssets Debt ~2 ASSETS Cash Contractsreceivable Accountreceivable Prepaid Van M atch Due from Special Revenue Fund Generalfixed assets OTHER DEBITS: Am oun tto be provided for retirem entof long term debt $ 160,972 14,638 27,384 46,604 $ 10,467 27,239 48,380 $1,073,153 $ 171,439 27,239 63,018 27, $ 109,779 32,926 69,365 8,000 79,337 1,064,353 26,005 19~585 TotalAssets and OtherDebits $ 1,434,842 $ I LIABILITIES,FUND EQUITY AND OTHER CREDITS LIA BIL IT IES: Accoun ts payable Due to GeneralFund Capitallease payable TotalLiabilities 35,436 $ -0-46,604 $ ,005 $ 37,583 $ 23,051 46, , , ,973 FUND EQUITY AND OTHER CREDITS: Invealm entin GeneralFixed Assets Fund balan ces Reserved forutility As sistanee/fem A Unreserved -Undesignated ,073,153 1,064,353 4, A51 197,018 TotalFund Equity and OtherCredits 4,046 1,073,153 1,324,650 L261,372 TotalLiabilities,Fund Equity and OtherCredits $ g6,096 $1,073,153 $1,393,345 The accompanying notesare an integralpartof thisstatem ent.

9 AVOYELLES COUNCIL ON AGING,INC. M arksvile,louisiana EXIIIBIT B COM BINED STATEM ENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES -ALL GOVERNM ENTAL FUND TYPES For the Year Ended June 30,2003 W ITH COM PARATIVE TOTALS FOR THE YEAR ENDED JUNE 30,2002 Revenues Intcrgovem mcntal Cenla Area Agency on Aging,lnc. FederalEnergy M anagementagency T/tie 19-DHH LA DepaIlmentof Transporiation LA Departm entof SocialServices Departmentof Health and Hospitals Office of Elderly Afairs AvoyclesPolice Jmy-JARC Public support Interestincom e Rentalincom e Other In-kind revenues Totalrevenues $11,396 18,120 56, ,005 1,830 36,000 Special Revenue $ 279,498 27,59l 77, ,843 8~ ,648 8, ~150 (Memorandum Only) _ 200 _..~3 _ 200.~2 $ 279,498 27,591 77, ,843 8~200 $ 274,088 19,844 79, ,635 44,809 13, Expenditures Current: Sa/aries Fringe Travel Operating service s Operating supplies Other In Kind Debt~ rvice: principal Intelest Capitaloutlay Totalexpenditures 64,581 7,137 3, ,664 5,056 9, ,262 55,994 48, ,202 65,601 9,493 47,400 14,077 1, , ,162 55,573 49, ,587 44,371 5, Excess(deficiency)of revenues over expenditures (33,33g) 44,530 Otherfinancing sources(uses) Operating transfersin Op erating tran sfersout Cap itallease Sale of Assets Tota/otherfinancing sourcesfuses) 68,732 (28,248) ,447 (261,932) 290,180 (290,180) Excess(deficiency)ofrevenues and other financing sourcesover expendituresand other financing uses Fund balance,beginning 36, ,018 4, , ,019 26, ,711 Priorperiod adjustment 13,544 Fund balance,ending

10 AVO YELLES CO UNCIL O N AG IN G,IN C. M arksville,louisiana EXH IBIT C STATEM ENT O F REVENUES,EXPEND ITURES AND CHANGES IN FUND BALANCE -BUDGET (GAAP BASIS)AND ACTUAL G ENERA L FUND For the Year Ended June 30,2003 REVENU ES Intcrgovernrneutal Departm entof Health & Hospitals Ofi ce of Elderly Afairs A voyetlcspolice Jury Public support Interestincom e Rentalincom e ln-kind re venues Total revenues $ 12,200 18,120 65, ,145 1,800 36,000 $ 11, , ,005 1,830 36, ,621 V arian ce- Favorable (Unfavorable) $ (804) (8,730) EXPENDITURES Current: Salaries Fringe Travel Operating services Operating supplies Other Capitaloutlay D ebtservice Totalexpenditures 45,994 4,936 1, ,241 1,125 7,000 29,743 1L ~452 64,581 7,137 3, ,664 5,056 9,255 29,743 11, ,959 08,587) (2,201) (2,110) (5,423) (3,931) (2,255) (34,507) Excess(deficiency)ofrevenues overexpenditures OTHER FINANCIN G SOI3R CES (USES) Operating transfersin Operating transfersout Capital Lease Totalotherfinan cing sources(uses) 17,931 (32,807) 68,732 (28,248) 29~ , ,743 85,103 Excess(deficiency)ofrevenuesand othersourcesover expenditures and other uses 36,889 41,952 Fund balance,beginning ,018 Period period adjustment ,544 Fund balance,ending $24745[ The accom pan ying notesare an integralpartof thisstatem ent.

11 AVO YELLES COUN CIL ON AG ING,IN C. M arksville,louisiana EX H IBIT D STATEM ENT O F REVENUES,EXPENDITUR ES AND CHANGES IN FUND BALANCE -BUDGET (GAAP BASIS)AND ACTUAL SPECIAL REV ENUE FUND For the Y ear Ended June 30,2003 REV ENU ES In tergovernm ental Cenla Area A gency on Aging,Inc. FederalEnergy M anagem enta gency Title 19 -DHH LA Departm entof Transportation LA D epartm entof SocialServices Public support Other In-kind incom e Totalrevenues $ 243,955 15,741 74, ,843 83, ,278 6,841 47, ,377 $ 279,498 2%591 77, ,843 80, ,648 8,915 47, ,150 V ariance- Favorable (Unfavorable) $ 35,543 11,850 2,436 (3,500) 22,370 2,074 70,773 EXPENDITURES Cun'Cnt: Salaries Fringe Travel Operating services Operating supplies Othercost In kind expense Debtservice: Principal Interest Totalexpenditures 334,311 35,909 44, ,932 39,242 1,124 47,400 9,413 1, , ,262 55,994 48, ,202 65,601 9,493 47,400 14,077 1, ~620 (132,951) (20,085) (4,861) 38,730 (26,359) (8,369) Excess(deficiency)ofrevenues over expenditures 132,851 OTHER FINANCING SOURCES (USES) Operating tran sfersin O perating tran sfers out Totalotherfinancing sources(uses) Excess(deficiency)ofrevenuesand other sourcesover expenditures and other uses 240,351 (226,319) 14, ,883 (18,904) (35,613) (54,51~) Fund balance,beginning 1 Fund balance,ending The accom pan ying notesare an integralpartof thisstatem ent.

12 A V O YELLES C O UN C IL O N A G IN G,IN C. M arksville,louisiana N O TES TO FINA NCIAL STATEM ENTS June 30,2003 N O TE 1 SU M M AR Y O F SIG N IFICA N T A C C O U N TIN G PO LIC IES In 1964,the State of Louisiana passed A ct456 w hich auth orized th e charter of voluntary councilson aging forthe w elfare of th e aging people in th eir respective parishes. Chartersar e issued by the Louisiana Secretary of State upon approvalby the G overnor's Office of Elderly A f airs. The A voyelles Councilon A ging,in c.is a non-profit corporation which m ust com ply w ith th e policies and regulations established by th e Governor's Ofi ce of Elderly A fairs.the Couuellal so receives revenues from otherfederal,state,and localgovernm entagencies w hich m ay im pose certain restrictionson how th e Councilcan use th e m oney provided. The C ouncilis nota com ponentunitof an otherprim ary governm entnor does ithave an y com ponentunitswhich are related to it. Therefore,th e C ouncil has presented itsfinan cialstatem entsasa separate special-purpose governm ent. The prim ary function of A voyelles Councilon A ging,inc.isto im prove the qual ity of life for th e parish'selderly an d to provide servicesto th e elderly. Such services include providing a location for m eals, nutritional education,inform ation an d assistance services,hom em akerservices,operating seniorcenters,an d tran sportation. A Boar d of D irectors,consisting of volun tary m em bersw ho serv e three-year term s, governs th e C ouncil. B In A prilof 1984,the FinancialA ccoun ting Foun dation established the G overnm ental Accoun ting StandardsBoard (GASB)to promulgate generally accepted accoun ting principlesan d reporting standar dsw ith respectto activitiesand transactionsof state and local governm ental entities. In N ovem ber of 1984,th e GA SB issued a codification of governm entalaccounting an d financial reporting stan dards. This codification and subsequentga SB pronoun cem ents are recognized as generally accepted accounting principles forsta te an d localgovernm ents.

13 A V O Y ELLES C O UN CIL O N A G IN G,IN C. M arksville,louisiana N O TES TO FIN A N CIA L STA TEM EN T S June 30,2003 B (continued) The accom panying finan cialstatem entsconform to generally accepted accounting principlesfor state and localgovernm ents.these statem ents have incorporated an y applicable requirem ents setforth by A uditsof State and Local G overn m ental U nits the industry audit guide issued by the Am erican Institute of Certified Public A ccountants;subsection V I-A nnualfinan cialreporting,accountin g m an ualfor G overnor'so ffice of Elderly A ffairscontractors;an d,the A uditg uide. C. Cash and Cash Eouivalents In the goverm nentalfund,cash an d cas h equivalentsinclude am ounts in alldem and deposits,interestbeating dem an d deposits an d tim e depositsw ith originalm aturities of three m onth sorlessfrom th e date of aquisition. The accoun tsof th e Councilare organ ized on th e basisof funds,each of which is considered a separate accounting entity.th e operations of each fund are accoun ted forw ith a separ ate setof self-bal an cing accoun tsth atcom prise itsas sets,liabilities, fund equity,revenues,an d expenditures. G overn m entalresourcesar e allocated to an d accoun ted forin in di vidualfundsbased upon th e purposesfor w hich th ey ar e spentand th e m ean sby w hich spending activitiesar e controlled.the various funds ar e groupe d,in the fin an cial statem ents in this reportinto tw o generic fund types and onebroad fun d category (accoun tgroup). G overnm entalfundsar e used to accoun tforal lorm ostof th e C ouncil'sgeneral activities,including th e collection an d disbursem entof specific orlegally restricted m oni es,the acqui sition of fixed as sets,an d th e servicing of general long-term debt. The governm entalfunds and the program s com prising them aspresented in th e financialsta tem entsar e described as follow s:

14 AV O Y ELLE S C O UN CIL O N A G IN G,IN C. M arksville,louisiana N O TES TO FIN AN CIA L STA TEM ENT S June 30,2003 D Fund Accounting:(Continued) G eneralfund The GeneralFun d isthe generaloperating fund of th e C ouncil.itisused to account forallfinancial resourcesexceptthose required to be accoun ted forin an otherfund. These discretionary fundsare accounted for and reported according to the source (federal,state,orlocal)from whieh they arederived.in addition,the servicing of general long-term debtis accounted forin th e G eneral Fund because unrestricted resources ar e used to pay forth e liabilitiesincurred by thisfund and th ere ar e no legal m an datesto use a debtservice fund. The follow ing program s com prise the C ouncil's G eneralfund: Revenues,such as,(1)donationsfrom the general public,(2)incomefrom various fund raisers (3)program service revenue from renting M edic Alertunits an d providing M edicaid services,and (4)interestincome earned on idle fundswhich have been in vested,have been recorded in th e "local" program of th e General fund. Expensesincurred w hich ar e notchargeable to specific program sar e recorded at "local " progr am expenditures.a lso,expenses incurred to produce related progr am service fees and ftm d raising incom e ar e char ged to "local " progr am expendi tures. "Local " fundsare also used as transfersto special revenue fundsto supplem entthose program s. In addition,fixed as setaddi tionsar e generally paid w ith "local " fim ds. This isa program w here the C ouncilcom pletesenrollm entapplications forpeople w anting to apply for M edi caid services.the C ouncilispaid $14 per application it completesby thedepartmentof Health an d Hospitals(DHH).Any fundsremaining afterapplying directcoststo operate thisprogr am ar e available for discretionary use by m an agem ent. The Job A cess an d Reverse Com m ute Program provides finan cialassistance for tran sportation serv ices designed to tran sportw elfar e recipients an d eligible low - incomeindividualsto an d from jobs.thisprogram isa costreimbursementprogram and isfunded by th e A voyellesparish Police Jury.

15 A V O YE LLES C O UN CIL O N A G IN G,IN C. M arksville,louisiana N O TES TO FIN AN CIAL STA TEM EN TS June 30,2003 PCOA (Act735)fundsare appropriated forthe Councilby the Louisiana Legislature and remited to the Councilvia thegovernor'sofi ce of Elderly Afairs(GOEA). The councilm ay use these "A ct735"fundsatitsdiscretion provided the program is benefiting people w ho ar e atleast60 year sold. SpecialRevenue Fundsare used to accountforthe proceeds of specific revenue sources(otherthan specialassessmentsan d majorcapitalprojects)thatare legally restricted to expenditures for specified purposes. M ostof the C ouncil's special revenue fundsar e provided by G OEA.The Title IIIfundsare provided by th e U nited StatesD epartm entof H ealth and Hum an Services -A dm inistration on A ging through th e G overnor'so fi ce of Elderly A fairs to Cenla A rea A gency on A ging,inc.w ho funds the Councilon a predeterm ined unit cost reim bur sem entbasis up to th e contr actam ount. The follow ing funds are funds which com prise th e Council's Special Revenue Funds: Title III-B Sunoortive Services Fund The Title III-B Supportive ServicesFun d isused to accoun tfor fundsw hich are to provide a variety of social services;such as,inform ation and assistance,access serv ices,in-hom e serv ices,com m un ity servicesan d outreach forpeople age 60 and older. 10

16 A V O YE LLE S C O UN CIL O N A G IN G,IN C. M arksviile,louisiana N O TES TO FIN AN CIA L STA TEM EN TS June 30,2003 D Fund Accounting:(Continued) Title IN C-1Ftt~d The Title lli C-1 Fund is used to accountfor funds which are used to provide nutritional,~ mealsto the elder/y in strategically located centers.during the fiscal year July 1, 2002 to Jun e 30, 2003, th e Council served about 40,191congregate m eals. Title IIIC-2 H om e D elivered M ealsfun d Title Il C-2 Fund isused to accoun tfor funds w hich ar e used to provide nutritional, hom e delivered m eal sto hom ebound olderpersons. D uring the fiscalyear July 1, 2002 to June 30,2003,th e C ouncilserv ed about88,487 hom e delivered m eals. Title III-D.Fund. Th e Title III-F Fund isused to accoun tforfundsused for disease prevention and health promotion activitiesorservices,such as;(1)equipmentand materials(scales to weigh people,educationalmaterials,and exerciseequipment),(2)home injury control, (3) medication management, (4) mental health an d (5) nutrition (assessment/screening,counseling,an d education).the law directsthestateagency adm inistering thisprogram to "give priority to areas of th e sta te w hich ar e m edically un deserved an d in which there ar e a lar ge num ber of olderindividuals who have th e greatesteconom ic and socialneed." Title ~I E-. Fun d. The Fun d accoun ts for the resourcesan d activities of the NationalFam ily Caregivers SupportProgram.The purpose of the program isto provide m ultifaceted system sof supportserv icesforfam ily caregiversan d gr andpar ents orolderindividualswho ar e relative caregivers.

17 A V O YELLES C O UN C IL O N A G IN G,IN C. M arksville,louisiana N O TES TO FIN A N C IA L STA TEM EN TS June 30,2003 D Fund Accounting:(Continued) SeniorCenterFund The SeniorCenterfund isused to accountfor the adm inistration of Seni or Center program fim dsappropriated by the Louisiana Legislature to the G overnor'so fice of Elderly Afairsto Ceni a Area A gency on A ging,inc.w ho fundsthe C ouncilon a predeterm ined un itcostreim bursem entbasis up to th e contractam ount. This program provides com m unity service centers at w hich older persons receive supportive services and participate in activities w hi ch fosterth eir independence, enhance theirdignity,an d encourage th eirinvolvem entin an d with the com m unity. The C ouncil operates3 senior centersin A voyellesparish,louisiana. The Supplem entalsenior CenterFund isused to accountforaddi tionalfundsto be used to supplem entth e prim ary contractfor th e SeniorCenters. Th ese funds are appropriated by th e Louisiana Legislature to the G overnor'sofi ce of Elderly A fairs to Cenla Ar ea A gency A gin g,inc.w ho fundsth e C ouncil. The U tility A ssistance Fun d is used to accoun tforthe adm inistration of program s th atare sponsored by localutility com panies.th e com panies collectcontributions from service custom ersand em ployeesand rem itth e fundsdirectly to th e C ouncil orthe Louisiana Association of Councilson Aging (LACOA),which in turn remits fundsrelatin g to A voyellesparish to the C ouncil.these funds ar e used to provide f'mancialassistan ce to th e elderly forth e paym entof th eir utility bills. The Title XIX Fun d is used to accountforfundsw hi ch ar e used to provide paym ents formedicalservicesprovided to (1)cash assistance recipients,(2)membersof certain man datory and optionalgroupswho do notreceivecash assistance,an d (3)other m edically needed people w ho qualify un der progr am guidelines.title X IX Fundsar e provided by th e U ni ted States D epartm entof H ealth an d H um an Servicesasdirect reim bursem entforcostsincurred by the C ouncil. 12

18 A V O Y ELLES C O UN CIL O N A G IN G,IN C. M arksville,louisiana N O TES TO FIN AN CIA L STA TEM EN TS June 30,2003 D Fupd Accoun ting:(continued) FEM A The FEM A fund is used to accountfor the adm inistration of a program w hich purpose isto supplem entfood and shelter assistance to qualified individuals.d uring th e yearth e C ouncilused th e FEM A funds to provide hom e-delivered m eals.funds w ere al so used to purchase food whi ch w as used to m ake boxesof food thatw ere distributed to needy fam ilies and the localfood bank. Fundsar e provided by th e FederalEm ergency M anagem entagency through the United W ay of Am erica which in turn passesthrough th e fundsto the Council. A local boar d workin g with th e parish's localu nited W ay agency assists th e C ouncilin obtaining FEM A funds from United W ay's nationaloffice. An accoun tgr oup isa finan cialreporting device designated to provide accoun tability forcertain as setsan d liabilitiesth atar e notrecorded in th e fim dsbecause th ey do not directly affectnetexpendable available finan cialresources.the follow ing account group is nota "fund". The fixed assets(capitaloutlays)used in governmental fund typeoperationsof AvoyelesCoun cilon Aging,Inc.are accounted for(capitalized)in thegeneral Fixed A ssets A ccoun tgroup and ar e recorded asexpendituresin the governm entalfund typesw hen pur chased. G eneral Lonu-Term D eb Long-term liabilitiesexpected to be fin an ced from governm enta lfundsar e accounted for in the General Long-Term D ebta ccoun tgr oup.the GeneralLong-Term D ebt Accoun tgroup show sonly th e m eas urem entof financialposition an d is notinvolved w ith m easur em entof resultsof operations.th e general obligations of th e C ouncil atjun e 30,2003,consisted of capital leases to finance th e acquisition of van s and a telephone system.

19 A V O YELLES CO UN CIL O N A G IN G,IN C. M arksville,louisiana N O TES TO FIN A N CIA L STA TEM EN TS June 30,2003 The accounting and financialreporting treatm entapplied to a fund isdeterm ined by its m easurem entfocus.the govern m entalfunds,in cluding the G eneraland Special Revenue Funds,are accoun ted for using a currentfinan cial resources m eas ur em ent focus. W ith thism easurem entfocus,only currentassets and currentliabilities ar e generally included on the balance sheet.operating statem ents of th ese funds present increases(revenuesan d otherfinan cing sour ces)an d decreas es(expendituresan d otheruses)in netcurrentassets. G overnm entalfunds are m ain tained on th e m odified accrualbas is of accounting w herein revenues ar e recognized in the accoun ting period in w hich they becom e available and m easur able.expendituresar e recognized in the accounting period in w hich th e liability isincurred,if m easur able. A dvan cesbetw een fundsw hich are notexpected to be repaid ar e accounted for as transfers.in those casesw here repaym entis expected,th e advan ces are clas sified as due from oth erfim dsordue to oth erfim dson th e bal an ce sheet.short-term interfund loan sare classified asim erfund receivables/payables. The C ouncilfollow sth ese procedur esin establishing the budgetary data reflected in th ese finan cial statem ents. The Cenla Area A gency on A ging,inc.notifiesth e C ouncileach year asto th e funding levelsforeach program 'sgr an taw ard. The C ouncilm ay also obta in gran tsfrom agenciesoth erth an G O EA and th e Councilconsidersthe potential revenues to be earned un derthose gr an ts. Projectionsaremade of revenuesfrom othersourcesbased on pasttrendsan d data avai lable to form expectationsof future revenues. The Executive D irector prepar esa proposed budgetbas ed on th e funding levelsprovided by Cenla Ar ea A gency on A ging,inc.an d th en subm itsth e budgetto the Boar d of D irectors forapprovalbefore M ay 31of th e current year forthe follow ing year.

20 A V O Y ELLES C O UN CIL O N A G IN G,IN C. M arksville,louisiana N O TES TO FIN AN CIA L STA TEM EN T S June 30,2003 The adopted budgetis forwarded to the Cenla A rea A gency on A ging,inc.for finalapproval. Allbudgetary appropriationslapseatthe end of each fiscal year (June30). Occasionaly,the Councilwilreceive a specialprojectgrantwhich may operate on a period diferentfrom th e C ouncil's norm al fiscalyear,and th erefore,have a specified date w here the budgetary appropriations wi lllapse. Th e budgetisprepared on a m odified accrua lbasis,consistentwi th th e basis of accoun ting, for com parability of budgeted an d actual revenues and expenditures. Budgeted am ountsincluded in th e accom panying financial statem ents include the originaladopted budgetam oun ts an d al lsubsequentam endm ents. A ctualam oun tsar e com par ed to budgeted am ounts periodical ly during the fiscalyear asa m anagem entcontrolpolicy. The C ouncilm ay transferfunds betw een line item s as often asrequired but m ustobtain priorapprovalfrom the Cenla Ar ea A gency on A ging,inc.for funds received un der grantsfrom G O EA. The C ouncilisnotrequired by state or local law to prepar e a budgetfor every program oractivity itconducts.a ccordingly,som e General Fun d activities are not budgeted,particularly if they ar e deem ed to be im m aterial by m an agem ent. Totalcolum nson th e com bined sta tem entsar e captioned "M em oran dum O nly"to in dicate th atthey ar e presented only to help wi th financial analysis. D ata in these colum ns do not present finan cial position,results of operations,or chan ges in fin an cial position in conform ity wi th general ly accepted accoun ting principles. N eith erissuch data com par able to a consolidation.interfund elim inationshave not been m ade in th e aggr egation of this data.

21 A V O YELLES C O UN CIL O N A G IN G, IN C. M arksville,louisiana N O TES TO FIN A N CIA L STA TEM ENT S June 30,2003 J. Fixed A ssets: The accounting and reporting treatm entapplied to the fixed assets as sociated w ith a fund are determ in ed by itsm easurem entfocus. Allfixed assets are stated athistoricalcostor estim ated historical costif actual historical costisnotavailable.donated fixed assetsar e stated attheir estim ated fair m ar ketvalue on th e date of donation. N O TE 2 R EV EN U E R E C O G N ITIO N S - IN TER G O V ER N M EN TA L G R A N TS PUB LIC SU PPO R T, A N D M ISC ELLA N EO U S RE VEN UE S,

22 A V O Y ELLES C O UN CIL O N A G IN G,IN C. M arksville,louisiana N O TES TO FIN A N CIAL STA TEM EN TS June 30,2003 N O TE 2 R EV EN U E R E C O G N ITIO N S - IN TER G O VE R N M EN TA L G R A N TS, PUBLIC SUPPORT,AND M ISCELLANEOUS REVENUES (Continued) A ct735 funds are received asm onthly allocationsof the totalgrantin advan ce of the actualexpenditures. Public Supportand M iscellaneous Revenues The Councilencouragesand receivescontributionsfrom clients to help offsetthe costsof variousprogram s.in addition,variousfund raisersar e held dur ing the year to obtain funds to offsetcostsof generaloperationsan d senior centeractivities.the tim ing and am ountsof the receiptsof public supportan d m iscellaneousrevenuesar e difi cultto predict;th erefore,th ey are notsusceptible to accrualand ar e recorded as revenue in th e period received. N O T E 3 IN -K IND C O N TRIBUTIO N S The C ouncilw asfurn ished th e use of five buildingsform ealsites dur ing the year as in-kind contributions. Th ese in-kind contributionshave been reported asrevenues and the ofsetting expenditures as costsin th e financial statem ents. N O TE 4 IN C O M E TA X STA TU S Th e C ouncil,a non-profitcorporation,isexem ptfrom federalincom e taxes under Section 501(c)(3)of theintern al RevenueCode of 1986 an d as an organization that isnota private foun dation as defined in Section 509 (a)of the Code. Itisalso exem ptfrom Louisiana in com e tax. N O T E 5 FUN D BA LA N CE -RE SERVED Fun d balan ce -reserved -specialrevenue fund consistsof am ounts to be specifically used for utility as sistance.

23 AV O YELLES CO UN CIL O N A G IN G,IN C. M arksville,louisiana N O TES TO FIN A N C IAL STA TEM EN TS June 30,2003 N O TE 6 A C C O UN TS A N D C O N TRA CTS R EC EIV AB LE Contractsreceivable atjune 30,2003,consisted of the follow ing Funding Agency Title III-D Senior Center Title III-B Title IIIC-1 Title IIIC-2 Title IH E Supplem entalsenior Center Total Special Revenue Special Revenue Special Reveun e SpeeialRevenue SpecialRevenue SpecialRevenue Cenla AAA Cenla AAA Cenla AAA Cenla A AA Cenla AAA Cenla AAA $ 422 1,958 10,299 1,164 11, SpecialRevenue Cenla AAA 265 $27,239 A ccoun tsreceivable atjune 30,2003,consisted of th e follow ing Title IIIC-2 Title IIIC-1 Section 5311 Title 19 Fam ily Independence W ork Program Local Utility M edicaid Title IIIB Fam ily Independence W ork Progr am Title 19 JARC Total SpecialRevenue Special Revenue Special Revenue SpecialRevenue Speci~ Revenue Gener~ Revenue Special Revenue GeneralRevenue Special Revenue Funding Source Local Local Deptof Transportation D H H O FS V arious FEM A D HH Local Special Revenue Local Special Revenue Local General Revenue Police Jury A m ount $ 1, ,132 6,522 7, ,326 13,122 18

24 A V O Y ELLES C O U N C IL O N A G IN G,IN C. M arksville,louisiana N O TES T O FIN AN CIAL STA TEM EN TS June 30,2003 O TE 7 CH A N G ES IN G EN ER AL FIX ED A SSETS A sum m ary of changes in generalfixed assets follow s: Balance 6/30/02 Balan ce 6/30/03 Furniture & equipm ent V ehicles Lan d Buildings Total $ 61, ,078 79, ,594 $ 4,793 24,950 $(2,939) (18,003) $ 63, ,024 79, ~594 $ 1,073,153 N O TE 8 C O M PEN SA TED A BSEN C ES Annualleaveisearned ata rateof (8)hourspermonth forfu ltime employees defined as 40 hours per w eek.less than full tim e em ployees rate is reduced accordingly.a fter 3 yearsof service,additional tim e isearned according to a year of service schedule.annualleave up to a m axim um of 40 hour s accum ulated doesvest with em ployees,how ever only annualleave for the m onth of D ecem ber can be carded into the nextcalenderyear.the vested portion of annual leave isnotrecorded in these financial statem ents.n o com pensation forunused sick leaves is paid upon separation of service. N O TE 9 CA SH IN BAN K The Council m aintain sa consolidated bank accountto depositth e m oney itcollects an d to pay itsbills.the consolidated bank accoun tis available for use by al lfunds. Th e purpose of this consolidated account is to reduce adm inistration costs an d facilitate cash m an agem ent.th e consolidated accountalso al low sthose fundswi th available cas h bal an ces to coveran y negative cas h bal an cesin other funds atyear end.atjune 30,2003,the balan ce of the Council'sbank accoun tswere $161,881. Th e related bank balan ces(colected deposits)atthatdatewere $171,566. The C ouncil al so m aintainsa bank accoun tforits FEM A funds.a tjun e 30,2003,the balan ce of th e FEM A accoun twas$9,558.the FEM A fun d'srelated bank balance (collected deposits)atthatdatewas $9,698 19

25 A V O Y ELLES C O UN CIL O N A G IN G,IN C. M arksville,louisiana N O TES TO FIN A N CIAL STA TEM EN TS June 30,2003 NOTE 9 CASH IN BANK (Continued) A ll deposits w re covered by Fderal depository insurance. G A SB Statem ent 3 categorized the creditrisk of these depositsas Category 1 because they are fully insured. N O TE 10 JU D G EM EN TS,CLAIM S A ND SIM ILA R C O N TIN G EN C IE S There is no litigation pending againstthe C ouncilatjune 30,2003. Furtherm ore, C ouneirsm anagem entbelievesthatany potentiallitigation w ould be adequately covered by insuran ce. N O TE 11 FED ERA L A W AR D PR O G R AM S The Councilreceivesrevenuesfrom various federalan d state grantprogram sw hich are subjectto finalreview an d approvalasto alowability of expendituresby the respective gr an tor agencies.any settlem entsorexpensesarising outof a finalreview ar e recognized in the period agreed upon by the agency an d th e C ouncil.also,itis m an agem ent's opinion th atany auditsby th e gran tor agencies would notproduce disal low ed program costsan d liabilitiesto such an extentth atth ey w ould m aterially afectth e C ouncil'sfinan cialposition. N O TE 12 EC O N O M IC D EPEND EN CY The Councilreceivesthemajority of itsrevenuefrom contractswith Cenla Area A gency on A ging,inc.if significan tbudgetcuts are m ade atth e federalan d/orstate level,the am ountof fundscontracted by Ceni a Area A gency on A ging,in c.could be reduced significan tly an d have an adverse im pact on the C ouncil's operations. M an agem entisnotaware of any actionsth atwilladversely af ectth e am oun tof funds th e Councilw illreceive in th e nextfiscal year. 20

26 A V O YELLES C O UN C IL O N A G IN G,IN C. M arksville,l ouisiana N O TES TO FIN AN CIA L STA TEM EN TS June 30,2003 N O TE 13 R ELA TED PA R TY There w ere no related party transactionsduring the fiscalyear N O TE 14 RISK M A N A G EM EN T The Councilisexposed to various risksof lossrelated to torts;theftsof,dam age to, and destruction of assets;errorsand omissions;injuriesto employees;an d natural disasters. Th e C ouncilhas purchased com m ercialinsur ance to coverorreduce the risk of loss thatm ightarise should one of th ese incidentsoccur.n o settlem entsw ere m ade during the year thatexceeded th e C ouncil's insur an ce coverage. N O TE 15 IN TER FU ND TRAN SFER S Operating transfers in an d outare listed by fund for2003 Funds Transferred In Title 1IB- Supportive Services Title In C-2 Title 19 JARC Title HI D E C-1 C-2 $5.108 Family Independence W ork Program Generalfund $5~930 $5 TotalOnt $5,108 $5.930 $5 FundsTran sfered Out Supplemental Senior Senior Section 5311 General Total Center Center FEM A Tran sportation PCOA Fund In 25,225 22,849 15,201 $31,717 1,714 $31,717 $28,452 $3,825 ~ 4 3 $182,842 $18,120 2,339 25, ,946 15,201 6,420 45,786 $10,128 $

27 A V O YELLES C O UN CIL O N A G IN G,IN C. M arksville,louisiana N O TES TO FIN A N CIA L STA TEM EN TS June 30,2003 N O TE 16 LEA SES The C ouncilrecords item s under CapitalLeases as an assetan d an obligation in the accom pan ying fin ancialstatem ents.a tjune 30,2003,the organization has capital leases for2 vans with an original recorded am ountof $45,949 an d a telephone system with an original recorded amoun tof $4,793.Lease obligationsare paid from the General Fun d an d SpecialRevenue Fund. Th e follow ing isa schedule of future m inim um leas e paym ents un der CapitalLeas es,togeth erwi th th e presentval ue of the netm inim um lease paym ents, as of Jun e 30,2003: Fiscal Y ear Ending: Jun e 30,2004 Jun e 30,2005 Totalm inim um leas e paym ent Less -am ountrepresenting interest Presentvalue of netm inim un aleas e paym ents N O TE 17 BO A RD O F D IR ECTO R S C O M PEN SA TIO N The Board of D irectorsisa volun tary boar d;therefore,no com pensation has been paid to an y m em ber. H ow ever,boar d m em bersar e reim bursed forout-of-tow n travelexpenses incurred in accordance wi th the Council'sregular personnelpolicy. N O TE 18 CH A N G ES IN G EN ER AL LO N G TER M O BLIG A TIO N S Long Term O bligations July 1,2002 A dditions D eductions Capital Leas es 19,585 25,742 (19,322) Long Term ObligationsatJun e 30,2003 N O TE 19 PRIO R PERIO D AD JU STM ENT The LocalFun d balan ce wasadjusted $13,544 fora priorperiod van match that was notcorrectly recorded.the neteffectincreased fund balance by $13,544.

28 A D D ITIO N A L IN FO R M A TIO N

29 ~S ml ~J ~1~ H

30

31 ~J ~ P~ k o~o~

32

33 SCHEDU LE 3 AV OYELLES CO UN CIL O N AG IN G,INC. M arksvine,louisiana SCHEDULE O F PRO GRAM EXPENDITURES BUDG ET VS.ACTUAL For the Year Ended June 30,2003 VARIAN CE FA VORA BLE (UNFAVORABLE) Salaries Fringe Travel Operatin g services Operatin g supplies Debtserv ice: Principal Interest Other Totals $ 147,471 15,855 5,000 75,266 18,160 4, $ 267,774 $ 170,093 20,396 9,086 41,611 17,598 4, ,352 $ 266,516 $ (22,622) (4,541) (4,086) 33, (1,710) $ (1,258) TITLE IIlC-1 Salaries Fringe Travel Operatin g serv ices Operatin g supplies Oth er Transfers In kind Totals $ 50,029 5,369 48O 11,738 4,500 23,700 $ 95,816 $ 57,898 6, ,972 7, ,700 $ 100,895 $ (7,869) (1,513) (241) 7,766 (2,873) (344) (5) $ (5,079) TIT LE III C-2 (3,657) Salaries Fringe Tra vel Operating serv ices Operatin g supplies Oth er Transfers In kind Totals $ 81,486 8,746 36,120 25,147 3, ~700 $ 178,199 $ 92,324 11,079 36,997 8,644 7,647 3,657 31,717 23,700 $ 215,765 $(1o,838) (2,333) (877) 16,503 (4,647) (3,657) (31,717) SECTIO N 5310 Transfer s Totals $ 182,843 $182,843 $ 182,843 $ $ -0- $ -0-

34 SCHEDULE 3 (continued) AVO YELLES CO UNCIL ON AGIN G,INC. M arksville,louisiana SCH ED ULE O F PR O G RAM EXPENDITUR ES BUD G ET VS.AC TUA L For the Y ear Ended June 30,2003 VARIAN CE FA VORA BLE (UNFAVORABLE) LO CAL Salaries Fringe Travel Operating services O perating supplies Other Capitaloutlay D ebtservices: Principle Interest Transfers $ 4, , ,757 7,000 29,743 1, ~282 $ 22,053 2,059 2, , ,419 29,743 1, ,065 $ (17,768) (1,6oo) (1,649) (5,981) (387) (1,419) -0- (6,783) SENIOR CENTER Transfer Totals ~.28,452 $ 28,452 $ 28,452 $ -0- Transfer: Tota ls $ 5~108.$ _.. 5,108 $ 5,108 $ 5,108 $ -0- Salaries Fringe Travel Operating Serv ices Operating Supplies Other Transfer: Totals $ 8, ,500 2, $14,905 $ 11,254 1,349 1,146 1, ,930 $ 21,180 Tran sfer: Totals $ 3,825 $ 3~825 $ 3,825 $ 3, $ -0-30

35 SCHEDULE 3 (continued) AVO YELLES COUN CIL ON AGING,IN C. M arksville,louisiana SCHEDULE O F PROGRAM EXPENDITUR ES BUDG ET VS.ACTUAL For the Y ear Ended June 30,2003 BUDGET ACTUAL VA RIAN CE FA VO RA BLE (UNFAVORABLE) PCO A -A CT 735 Transfer: Totals $ 18,120 $ 18,120 $ 18,120 $ 18,120 $ ~0- $ -0- Salaries Fringe Travel O perating services Operating supplies Other Debtserv ice: Principle Interest Totals $ 47,003 5,046 45,415 13, , $116,514 $ 51,871 6, ,222 12,866 1,387 4, $ 104,118 $ (4,868) (1,189) (409) 19, (905). 0~ $ 12,396 FEM A Opera ting serv ices Op erating supplies Transfers Totals $ 11, ,247 $ 16A09 $ 13,394 6,070 4,053 $ 23,517 $ (2,314) (5,988) 1,194 Salar ies Frin ge Travel Operatin g serv ices Op erating supplies Other Debtserv ice: Principle Interest Transfers Totals $ 40,871 4,387 8,799. 0o 7, ,943 $ 73,526 $ 40,200 4, ,094 3, , $ 67,452 $ 671 (415) (424) (295) (3,636) (770) 10,943 $ 6,074 31

36 SCHEDULE 3 (continued) AVO Y ELLES CO UN CIL O N A G IN G,INC. M arksville,louisiana SCHEDULE O F PRO GRAM EXPENDITURES BUDG ET VS.ACTUAL For the Y ear Ended June 30,2003 VARIA NCE FA VORA BLE (UNFAVORABLE) M ED ICA ID Salaries Fringe Travel Operating services Operating supplies Other Transfers Totals $ 2, ,832 1, ,063 $12,635 $ (1,490) (186) (37) (66) 436 $ (435) Operating services Totals $ 6,841 $ 6,841 $ 7,454 $ 7,454 $ (613) $ (613) 32

37 SCH EDU LE 4 AVOYELLES COUNCIL O N AGIN G,INC. M arksville,louisiana CO M PAR ATIVE SCHEDULE O F G EN ERAL FIX ED A SSETS A ND CHA NG ES IN G ENERA L FIX ED ASSETS For the Year Ended June 30,2003 GEN ERA L FIX ED A SSETS,A T CO ST Furniture and Equipm ent Vehicles Land Buildings Balan ce Jan e 30, 2002 $ 61, ,078 79, ,594 Additions $ 4,793 24,950 Deletions $ (2,939) (18,003) Balan ce June 30, 2003 $ 63, ,024 79, ,594 TotalGeneralFixed Assets $1,064,353 $ 29,743 ~ IN V ESTM EN T IN GENERAL FIX ED A SSETS Title III-B $ GeneralFund Title III-C-1 Title III-C-2 Fam ily Independence W ork Program Title 19 Section 18 Senior Center TotalIn vestm entin G eneral Fixed Assets 10, ,810 $ 29,743 $(20,943) 32, ,030 9,211 99,333 2,590 10, ,610 32,183 5,173 9,030 9,211 99,333 2,590 The accom pan yin g notesare an integralpartof thisstatem ent. 33

38 ~ w z q~

39 OTH ER REPORT RE QUIRED BY G O VE RN M EN T A UD ITIN G STA N D A R D S

40 M EM 8ER AM ERICAN INSTITUTEO~" CERTIFI~D PUBLIC ACCO UNTANTS D A U Z A T,B E A L L & D E B E V E C,C PA s M EM BER SOCIETY OFLOUISIANA CERTIFIED PUBLIC ACCOU N'I'ANTS A PRO FF-,SSIO N A L CO RPO RATIO N R EPO RT O N C O M PLIA N CE A ND O N IN TERN A L C O NTR O L O VER FINA N C IA L RE PO RTIN G BA SED O N A N A U D IT O F FIN A N C IA L STATEM EN TS PERFO RM ED IN A C C O RD A N C E W ITH GO VERN M EN T A UD 1TIN G STAN DA RD S Board of D irectors A voyelles Councilon A ging,inc W c haveaudited the generalpurpose financialstatementsofavoyellescouncilon Aging,Inc.(a non-profitorganization)asof and forthe yearended June 30,2003,and have issued ourreport thereon dated N ovem ber7,2003. W e conducted ourauditin accordance w ith generally accepted auditing standards in the U.S.and the standards applicable to financial audits contained in G overnm entauditing & andards,issued by the Com ptrollerg eneralof the U nited States, C om pliance A sparto fobtaining reasonable assurance aboutw hetherthe C ouncil'sfinancialstatem entsare free of m aterialm isstatem ent,w e perform ed tests ofits com pliance w ith certain provisions of law s, regulations,contractsand grants,noncom pliance w ith w hich could have a directand m aterialeffect on the determ ination offinancialstatem entam ounts.how ever,providing an opinion on com pliance with thoseprovisionsisnotan objectiveofourauditand,accordingly,wedo notexpresssuch an opinion.the resultsofourtestsdisclosed no m aterialinstancesofnoncom pliance thatare required to be reported underg overnm enta uditing Standards'. InternalC ontrolo ver FinancialR eporting In planning and pertbrm ing ouraudit,w e considered the C ouncil'sinternalcontroloverfinancial reporting in orderto determ ine ourauditing proceduresforthepurpose of expressing ouropinion on the financialstatem ents and notto provide assurance on the internalcontrolover financial reporting. O urconsideration of the internalcontroloverfinancialreporting w ould notnecessarily disclose allm attersin the intern alcontroloverfinancialreporting thatm ightbe m aterialw eaknesses. A m aterialw eaknessisa condition in w hich the design oroperation ofone orm ore of the intern al controlcom ponentsdoesnotreduce to a relatively low levelthe risk thatm isstatem entsin am ounts thatwould be m aterialin relation to the financialstatem entsbeing audited m ay occuran d notbe detected w ithin a tim ely period by em ployeesin the norm alcourse of perform ing theirassigned functions. W e noted no m atters involving the internalcontrolover financialreporting and its operations thatw e considerto be m aterialw eaknesses. ZZ0 W INDSOR PLACE *ALEXANDRIA.LOUISIANA 71303*(318) *FAX (318)

41 This reportis intended forthe inform ation of th e Board of D irectors,m anagem entan d federal aw ar ding agencies,and pass-through entitiesand isnotintended to be and should notbe used by an yone oth erth an these specified parties. Certified Public A ccountants N ovem ber 7,

42 M EM BER AM ERICAN INSTITUTEOF CERTIFIED PUBLIC ACCOUNTANTS D A U Z A T,B E A L L & D E B E V E C,C PA s MEM BER SOCIETY OFLOUISIANA CERTIFIED PUBLIC ACCOUNTANTS A PRO FESSIO NAL CO RPO RAT O N REPORT ON COM PLIANCE W ITH REQUIREM ENTS APPLICABLE TO EACH M AJO R PR O G RA M A N D INTERN A L C O N TR O L O V ER C O M PLIA N CE IN AC C O R DA NC E W ITH O M B C IR CULA R A -133 A voyelles Councilon A ging,lnc M arksville,la. C om pliance W e have audited the com pliance of the Avoyelles Councilon A ging,inc.w ith the types of compliancerequirementsdescribed in theus.oficeof Managementand Budget(OMB)Circular A-133 ComplianceSupplementthatareapplicableto each ofitsmajorfederalprogram sfortheyear ended June30,2003.TheAvoyelesCouncilon Aging,[nc.'smajorfederalprogram sareidentified in the sum m ary of auditor's results section of the accom panying Schedule of Findings and Questioned Costs. Compliancewith therequirementsoflaws,regulations,contractsand gran ts applicableto each ofitsmajorfederalprogram sistheresponsibility oftheavoyelescouncilon Aging,Inc.'sm an agem ent.o urresponsibility isto expressan opinion on the A voyellescouncilon A ging,inc.'scom pliance based on ouraudit. W e conducted ourauditof com pliance in accordance w ith auditing standardsgenerally accepted in the U nited Statesof A m erica;the standardsapplicable to financialauditscontained in G overnm ent Auditing Standards',issued by the Com ptrollerg eneralof the U nited States;and O M B C irculara - 133,Auditsof States,LocalGovernments,and Non-ProfitOrganizations. Thosestandardsand O M B CircularA -133 require thatwe plan and perform the auditto obtain reasonable assurance aboutwhethernoncom pliance w ith the typesof com pliance requirem entsreferred to above thatcould have a directand materialeffecton a majorfederalprogram occurred.an auditincludesexamining, on a testbasis,evidence aboutthe Avoyelles Councilon Aging,Inc.'s com pliance w ith those reqnirem ents and perfora ting such otherprocedures as w e considered necessary in the circum stances. W e believe thatourauditprovidesa reasonable basisforouropinion.o urauditdoesnotprovide a legaldeterm ination on the A voyellescouncilon A ging,lnc.'scom pliance w ith those requirem ents. In ouropinion,the AvoyellesCouncilon A ging,inc.com plied,in allm aterialrespects,w ith the requirementsreferred to abovethatareapplicableto each ofitsmajorfederalprogramsfbrtheyear ended June,30,2003. ZZ0 W INDSOR PLACE *ALEXANDRIA,LOUISIANA 71303~(318) ~FAX (318)

43 InternalC ontrolo ver C om pliance The m anagem ent of the A voyelles Councilon A ging,inc.is responsible for establishing and m aintaining effective internal controlover com pliance w ith requirem ents of law s,regulations, contracts an d grants applicable to federalprogram s. In planning an d perform ing our audit,w e considered the A voyelles Council on A ging, Inc.'s intern al control over com pliance w ith requirementsthatcould have a directan d materialefecton a majorfederalprogram in orderto determ ine our auditing procedures forthe purpose of expressing our opinion on com pliance an d to testand reporton intern alcontrolovercom plian ce in accordance w ith OM B Circular A Our consideration of the intem alcontrolovercom plian ce w ould notnecessarily disclose allm atters in the internalcontrolthatm ightbe m aterialw eaknesses. A m aterialw eakness is a condition in w hich the design or operation of one or m ore of the internal controlcom ponents doesnotreduce to a relatively low levelthe risk th atnoncom plian ce w ith applicable requirem entso flaw s,regu lations, contractsan d gran tsthatwould bematerialin relation to a majorfederal program being audited may occur an d notbe detected w ithi n a tim ely period by em ployeesin the norm alcourse of perform ing th eirassign ed functions. W e noted no m atersinvolving the internalcontrolovercom pliance and itsoperation th atw e consider to be m aterial w eaknesses. Thi sreportisintended for th e inform ation of th e A voyelles Councilon A ging,in c.'s m an agem ent, federal aw ar ding agencies an d pass-through entitiesan d is notintended to be an d should notbe used by an yone oth er th an these specified parties. Certified Public A ccountants N ovem ber 7,