BE AU CARE,IN C. D ER ID D ER,LO U ISIAN A FIN AN CIAL STA TEM EN TS D ECEM B ER

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1 BE AU CARE,IN C. D ER ID D ER,LO U ISIAN A FIN AN CIAL STA TEM EN TS D ECEM B ER

2 TAB LE O F CON TEN TS Statem ent Page N o. IndependentAuditor'sR eport Statem entof FinancialPosition Statem entof A ctivities Statem entof FunctionalExpenses Statem entof Cash Flow-s N otesto the FinancialStatem ents R eporton Com pliance and on InternalControlOver FinancialR eporting B ased on an Auditof Financial Statem entsperform ed in A ccordance W ith Governm enta re tiring Standards A B C D

3 John A.W indham.c PA A Pro[essionalCorporation 1620 N orth Pine Street D er idder,l A Tel:(337) Fax:(337) John A.W indham,c PA IND EPEND EN T AUD ITOR 'S REPOR T To the B oard of D irectors BeauC ARE,Inc. D eridder,louisiana Ihave audited the accom panying statem entof financialposition of BeanCARE,Inc. (anonprofit organization)asof December31,2002,and the related statementsof activities,functionalexpenses,and cash flow sforthe yearthen ended. These financialstatem entsare the responsibility of the O rganization'sm anagem ent.m y responsibility isto expressan opinion on these financialstatem ents based on m y audit. Iconducted m y auditin accordance w ith auditing standardsgenerally accepted in the U nited Statesof Am erica and the standardsapplicable to financialauditscontained in Governm el~ta uditm g Standards, issued by the Com ptrollerg eneralof the United States. Those standardsrequire that1plan and perform the auditto obtain reasonable assurance aboutw hetherthe financialstatem entsare flee of m aterial m isstatem ent. An auditincludesexam ining,on a testbasis,evidence supporting the am ountsand disclosuresin the financialstatem ents. An auditalso includesassessing the accounting principlesused and significantestim atesm ade by m anagem ent,asw ellasevaluating the overallfinancialstatem ent presentation. Ibelieve thatm y auditprovidesa reasonable basisform y opinion. In m y opinion,the financialstatem entsreferred to above presentfairly,in allm aterialrespects, the financialposition of B eaucare,inc.,asof D ecem ber3 I,2002,and the changesin itsnetassetsand its cash flow sforthe yearthen ended in conform ity w ith accounting principlesgenerally accepted in the U nited Statesof Am erica. In accordance w ith G overnm entauditing Standards,1have also issued by reportdated June 23, 2003,on m y consideration ofb eauc ARE,Inc.'sinternalcontroloverfinancialreporting and m y testsof its com pliance w ith certain provisionsof law s,contracts,and grants. Thatreport isan integralpart of an auditperformed with GovernmentAuditing Standardsand should beread in conjunction with thisreport in considering the resultsof m y audit. D eridder,louisiana June 23_2003

4 B eaucar E,Inc. D eridder.louisiana Statem enta Statem entof FinancialPosition D ecem ber31,2002 A SSETS CurrentA ssets: Cash Grantsreceivable Prepaid insurance Totalcurrentassets Property and Equipm ent: Equipm ent,lessaccum ulated depreciation of $20,451 Totalassets 76,106 80,458 3_ ,324 88_748 $ LIAB ILITIE S CurrentLiabilities: Payrolltaxespayable A ccountspayable Salariespayable D eferred revenue Totalcurrentliabilities N oncurrentliabilities N ote payable TotalLiabilites $ 4,827 55,702 14,760 74,444 $ _386 $ N ET A SSETS Unrestricted/Undesignated Totalliabilitiesand netassets 60_953 $ The accom panying notesare an integralpartof thisstatem ent - 2-

5 B eaucar E,Inc. D eridder.louisiana Statem ent B Statem entof A ctivities Forthe YearEnded D ecem ber30,2002 S UPPOR T A N D RE VEN UE SUPPOR T G rants State contracts Cash contributions Fund raising Totalsupport R E V EN U E Feesforservices Interest Totalrevenue Totalsupportand revenue EX PEN SE S PR O G RA M SER VICE S R ecreationaland educationalprogram s SUPPOR T SER V ICE Fund raising Totalexpenses Excess(deficiency)of supportand revenueoverexpenses N eta ssets,beginning of year Total 92, ,027 4,122 12_ _832 73, _767 $ $ _425 $ ,946 46_400 PriorPeriod Adjustment N eta ssets,end of year 60_953 The accom panying notesare an int egralpartof thisstatem ent - 3-

6 B eaucar E,Inc. D eridder.louisiana Statem entc Statem entof FunctionalExpenses Forthe YearEnded D ecem ber31,2002 Program Services Support Services Total Expenses Salaries Payrolltaxesand related expenses Totalsalariesand related expenses 174,435 16_ $ $ 174,435 16,733 $ Supplies Telephone & Utilities D ues/licenses/perm its Travel Postage Repairsand maintenance(bldg,and equipment) Interest Training Insurance Ofi ce supplies Incredible Flag football Specific assistance Concessions Teen pregnancy Totalexpensesbefore depreciation $ 2,425 $ D epreciation Purchased assets Totalexpenses $ $ $ 2,425 9_382 $ The accom panying notesare an integralpartof thisstatem ent - 4-

7 B eaucar E,Inc. D eridder.louisiana Statem entd Statem entof Cash Flow s Forthe YearEnded D ecem ber31_2002 Cash flow sfrom operating actm ties: Cash received from grants Cash received from donations Cash received from fund raising Cash received from state contracts Cash received forprogram fees Cash received from interestearnings Cash paym entsforprogram activities Cash paym entsto em ployeesforsalariesand related benefits N etcash provided foroperating activities $ 92,076 4,122 12, ,630 81, (130,101) (187,438) $ 86,497 Cash flow sfrom capitaland related financing activities: A cquisition of capitalassets Proceedsof new debt N etcash used forcapitaland related financing activities N etincrease in cash and cash equivalents Cash and cash equivalents,beginning of year Cash and cash equivalents,end of year $ (49,298) 33,919 $ (15,379) 71, $ 76,106 (Continued) The accom panying notesare an integralpartof thisstatem ent - 5-

8 B eaucar E,Inc. D eridder.louisiana Statem entd Statem entof Cash Flow s Forthe YearEnded D ecem ber31,2002 R ECO N CILIA TIO N O F N ET IN CO M E TO N ET CA SH PR O V ID ED B Y OPERA TIN G A CTIV ITIE S: N etincom e Adjustmentsto reconcileoperating loss to netcash provided by operating activities D epreciation Changesin assetsand liabilities: Increase in accountsreceivable Increase in prepaid expenses Increase in accountspayable Increase in deferred revenue D ecrease in payrolltax payable Increase in salariespayable D ecrease in em ployee advance Totaladjustments N etcash provided foroperating activities (60,776) (3,760) 52,763 67,212 (1,892) 5, $ 86,497 (Concluded) The accom panying notesare an integralpartof thisstatem ent - 6-

9 BEAU CARE,IN C. D ERID D ER,LO U ISIAN A N OTES TO THE FIN AN CIAL STA TEM EN TS D ecem ber31,2002 SUM M A R Y O F SIG N IFICA N T A C C O UN TING PO LIC IES (a)organization BeauCARE,Inc.isa Louisiana non-pro~ corporation. Itspul-pose isto provide opportunitiesin personalgrow th and developm entthrough recreationaland educational program sforresidentsof allagesin the B eauregard Parish area. The significant accounting policiesfollow ed by the organization are described below to enhance the usefu lnessof the financialstatem entsto the reader. (b)m ethod of Accounting The financialstatem entsof B eaucare,inc., have been prepared on the accrualbasisof accounting,and accordingly reflectallsignificantreceivables,payables,and other liabilities (c)basicprograms The basic program sof BeauCARE, Inc.,includerecreationalprograms(i.e.Aqua Aerobics,Flag Footbal,Incredibal,Youth Recreation Center),summermini-campsand educationalprogram s. (d)incom e Taxes Theorganization isqualified asan exemptorganization undersection 501(c)(3)of the InternalRevenueCodeand isnotsubjectto federalincometax.in addition,the organization hasbeen deten-nined by the InternalR evenue Service notto be a private foundation within Section 509 (a)ofthecode. (e)supportand Revenue Allcontributionsare revenuesreceived and considered to be available forunrestricted use unlessspecifically restricted by the donor. (0 Fixed Assets Itisthe Organization'spolicy to capitalize property and equipm entover$1,000. Lesser am ountsare expensed.purchased property and equipm entiscapitalized atcost. D onationsof property and equipm ent are recorded ascontributionsattheirestim ated fair value. (g)depreciation D epreciation iscom puted on a straightqine basisoverthe estim ated usefullife of the asset,w hich rangesfrom 5-40 years.d epreciation expensesforthe yearended D ecem ber31,2002 am ounted to $ 9,382. 7

10 BEAU CARE,IN C. D ER ID D ER,LO U ISIAN A NOTES TO THE FINANCIAL STATEM ENTS (CONTINUED) (h)cash and Cash Equivalents The organization considersallshort-term debtinvestm entspurchased w ith m aturity of three m onthsorlessto be cash equivalents. Cash includesam ountsin dem and deposits, interest-bearing dem and deposits,and m oney m arketaccounts. (i) Prepaid Items Prepaid am ountsconsistof insurance policy prem ium spaid in advance 2. FIX ED A SSE T S A N D D EPR E C IA TIO N Fixed assetsare included on the balance sheetnetof accum ulated depreciation. D epreciation of allexhaustible fixed assetsischarged asan expense againstoperations D epreciation iscom puted using the straightline m ethod. A sum m ary of the organization'sassetsfollow s Purchased Equipm ent Less:accum ulated depreciation $ 109,199 (20,45l) 3. D O NA TED FA CILITIE S,M A TER IALS A N D SER V ICE S Donated materials,equipment,and useoffacilities(if any)arereflected ascontributions orfund raising support in the accom panying statem entsattheirestim ated valuesatthe dateofreceipt.donated services(ifany)arerecognized ascontributionsin accordance w ith SFA S N o.116,a ccounting forcontributionsr eceived and ContributionsM ade, if theservices(a)createorenhancenonfinancialassetsor(b)requirespecialized skils,are perform ed by people with those skillsand w ould otherw ise be purchased by the organization. V olunteersalso provided servicesthroughoutthe yearthatare not recognized ascontributionsin the financialstatem entssince the criteria forsfa S N o. 116 are notm et. 4. EC O N O M IC D EPEN D EN CY The organization receivesa substantialportion of itstotalsupportand revenuesfrom U nited W ay. D uring the period ended D ecem ber31,2002,beaucar E,Inc.,received $ 92,076 in grantsupportw hich represents23% of totalsupportand revenue. 8

11 BE AU CARE,IN C. D ER ID D ER,LO U ISIAN A NOTES TO THE FIN ANCIAL STATEM ENTS (CONTINUED) FU N D IN G BeauCAR E,Inc.receivesfundsfrom the D epartm entof SocialServicesunderthe Teen Pregnancy Prevention Contract. The m oniesare used to pay salariesand related expensesforbeauca RE Inc.and afi liated organizations. The fundsreceived forthe yearended D ecem ber31,2002,am ounted to$ 196, R EC EIV ABLES The follow ing isa sum m ary of receivablesford ecem ber31,2002 Classof R eceivable Grants: OFS-Teen Pregnancy LCTF-Safe Visitation Federation of Fam iles Total $ 77,458 2, $ 80, A C C O UN T S A N D O TH ER PA Y A B LE S The follow ing isa sum m ary of payablesatd ecem ber31,2002 Classof Payable A ccounts Salaries Paytolltaxes Total $ 55,702 14,760 4_827 C H A N G ES IN N O TES PA Y A BLE The follow ing isa sum m ary of notespayable atd ecem ber31,2002 N otes Payable atd ecem ber31,2001 A dditions Principalpaym ents N otespayable atd ecem ber31,2002 $ 4,469 40,060 (6,143) 9

12 BE AU CARE,IN C. D ER ID D ER,LO U ISIAN A NOTES TO FIN ANCIAL STATEM ENTS (CONCLUDED) N otespayable are com prom ised of the [bllowing Prom issory N ote- FirstN ationalb ank in D eridder $ 40,060 Prom issory note payable to the orderof FirstN ationalbank in D eridderin 35 m onthly paym entsof $ 805 each starting October5,2002 and one irregularpaym entof $ 18,655 lastpaym entdue Septem ber5, 2005,with an interestrate of 7.5%. $ D E FE R R E D R E V E N UE The organization requested an advance paym entfrom the O ffice of Fam ily Supportfor the Teen Pregnancy Prevention Program in the am ountof $ 83,750,of w hich $ 9,306 w asrecognized asof D ecem ber31,2002. W hen paym entsare requested from the O fice of Fam ily Support,am ountsare deducted from future paym entsbased on the contract. 10. PR IO R PERI O D A D J USTM EN T Thepriorperiod adjustmentshown in thestatementofactivitiesresultsfrom the organization'schange from the cash basisof accounting asreported in prioryearsto the accrualbasisof accounting asreported in these financialstatem ents. The priorperiod adjustmentamountof$3,393and isimmaterialto thefinancialstatementsand no other reference hasbeen m ade to the change. 11. PR IO R Y E A R A U D IT FIN D IN G S There w ere no prioryearauditfindingstbrthe yearended D ecem ber31,2002

13 John A.W indham.c PA 1620 N orth Pine Street D er idder,la Tel:(337) Fax:(337) John A.W indham,cpa REPOR T ON COM PLIAN CE AND ON IN TERN AL CON TR OL O V ER FIN AN CIAL REPO R TIN G B A SED ON AN AU D IT OF FIN AN CIAL STA TEM EN TS PERFORME D IN A CCORD AN CE W ITH G OVE RN M EN T AUD ITIN G STAN D ARD S B oard of D irectors B eauc ARE,Inc. D eridder,louisiana Ihave audited the financialstatem entsof BeauCARE,Inc.,D eridder,louisiana, asof and forthe yearended D ecem ber3 I,2002 and have issued m y reportthereon dated June 21,2003. Iconducted m y auditin accordance w ith auditing standardsgenerally accepted in the U nited Statesof Am erica and the standardsapplicable to financialauditscontained in Governm entauditing Sla~ldards,issued by the Com ptroller G eneralof the United States. Com pliance Aspart of obtaining reasonable assurance aboutw hetherb eaucare,inc.'sgeneralpurpose financialstatem entsare flee of m aterialm isstatem ent,iperform ed testsof itscom pliance w ith certain provisionsof law s,regulations,contractsand grants,noncom pliance w ith w hich could have a directand m aterialeffecton the determ ination of financialstatem entam ounts.h ow ever,providing an opinion on compliancewith thoseprovisionswasnotan objectiveof my auditand,accordingly,1 do notexpresssuch an opinion. The resultsof m y testsdisclosed no instancesof noncom pliance that are required to be reported under(~ovel~*m enla*ldilihg Slandards'. nternalcont roloverfinancialr enortin~z In planning and performi ng m y audit,iconsidered B eaucare,lnc.'sinternalcont roloverfinancial reporting in orderto determine m y auditing procedurestbrthe purpose of expressing m y opinion on the generalpurp ose financialstatem entsand notto provide assurance on the internalcontrolover financialreporting. M y consideration of the internalcontroloverfinancialreporting w ould notnecessarily disclose all m attersin the intern alcontroloverfinancialreporting thatmi ghtbe m aterialw eaknesses. A m aterial w eaknessisa condition in w hich the design oroperation of one orm ore of the internalcontrol

14 B oard of D irectors B eauc ARE,Inc. D eridder,louisiana com ponentsdoesnotreduce to a relatively low levelthe risk thatm isstatem entsin am ountsthat w ould be m aterialin relation to the generalpurpose financialstatem entsbeing audited m ay occur and notbe detected w ithin a tim ely period by em ployeesin the normalcourse of perform ing their assigned functions. Inoted no m attersinvolving the internalcontroloverfinancialreporting and its operation thaticonsiderto be m aterialw eaknesses. Thisreportissolely intended forthe inform ation and use of the B oard of D irectors,b eaucar E, Inc.'sm anagem ent,otherswithin the organization and the Legislative Auditorand isnotintended to be and should notbe used by anyone otherthan these specified parties. D eridder,louisiana June 23,

O~ JtJN 22 AH i1:09 RECEIVED FINA N CIA L STA TEM ENTS LEGISLATIVE AUDITOR

O~ JtJN 22 AH i1:09 RECEIVED FINA N CIA L STA TEM ENTS LEGISLATIVE AUDITOR RECEIVED LEGISLATIVE AUDITOR O~ JtJN 22 AH i1:09 LO U ISIA NA M U N IC IPA L A DV ISO RY A N D TEC H N ICA L S ERV IC ES BU REA U C O RPO RA TIO N FINA N CIA L STA TEM ENTS D EC EM BER 3 1,2003 R~C~VE~