A L LEN A C TIO N A G EN C Y,IN C. O B E R L IN,L O U ISIA N A

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1 A L LEN A C TIO N A G EN C Y,IN C. O B E R L IN,L O U ISIA N A A Com ponentu nitof the A llen Parish Police Jury G eneralpurpose FinancialStatem ents For the Y ear Ended June 30,2000

2 TA BLE O F CON TEN TS Page IN D EPEN D EN T A U D ITO RS'REPO RT GEN ERAL PU RI'O SI]FIN AN CIAL STA TEM ENTS (COM BINEI)STATEM ENTS - OVERVIEW ) Com bined Balance Sheet- A llfund Types and A ccountg roups Cm nbined Statem entof Revenues,Expenditures,and Changes in Fund Balances- A llg overnm entalfund Types N otesto FinancialStatem euts SU PPLEM EN TARY IN FO RM ATION SCIJED U LE O F IN D IV ID U A L FUN D S SpecialRew ~nue Funds- C om bining,balance sheet Com binin[,stalem enlof revenues,expenditures, and changesin fund balances CO M PLIAN CE,IN TERN A L CON TRO L,A N D O TH ER G RA N T IN FO R M A TION Reporto 1Com pliance and o linternalcontrol overfinancialreporting Based on an A udit of FinancialStatem entsperform ed in A ccordance w ith G overnm enta uditint,standards Report on Com pliance w ith Requirem entsa pplicable to each M ajorprogram and InternalControloverCompliance in A ccordance w ith O M B C irculara -133 Schedule of expendituresof federalaw ards N otesto schedule of expendituresof federalaw ards Schedule of findingsand questioned costs Sum m ary schedule of currentand prioryearauditfindings and corrective action plan

3 C 8ur~on KolcJerCPA RusselF Champagne,CPA VlCIOr~ Slaven,CPA C~,risRainey.CPA Conrad O Chapm an,cpa P ~ roycourvil~e.cpa A len J LaBry CPA PennyAnOele Scm gg~ns CPA MaryT ThibOdeaux CPA G~,a~d A Thibodeaux,Jr,CPA Kerly M Doub t,cpa Kenneth J Rachel.CPA K O LD E R,C H A M PA G N E,S LA V E N & RA IN EY,LLC CERT(FtED PUBLIC ACCOUNTAN'fS P.O.Box 539 O berlin,la phone (337) Fax (337) W EB SITE W V,hV KC BRCPAS COM MEMBER OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOCIETY OF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS IN D EPEN D EN T A U D ITO R S'REPORT To the Board of D irectors A llen A ction A gency,inc. A Com ponentu nitof the A llen Parish Police Jury O berlin,louisiana W e have audited the accom panying generalpurpose financialsta tem entsof the A llen A ction A gency, Inc.,a com ponentunitof the A llen Parish Police Jury,asof and forthe yearended June 30,2000,aslisted in the table of contents. These generalpurpose financialstatem ents are the responsibility of the A gency's m anagem ent. O utresponsibility isto expressan opinion on these generalpurpose financialstatem entsbased on ouraudit. W e conducted our audit in accordance w ith generally accepted auditing standards; G overnm ent Auditing Standar(!s,issued by thecomptrolergeneraloftheunited States;and theprovisionsof Officeof M anagem ent and Budget Circular A -133, "A udits of States, Local G overnm ents, and N on-profit O rganizations." Those standards and OM B CircnlarA -133 require th atw e plan and perform the auditto obtain reasonable assurance about w hether the generalpurpose financial statem ents are free of m aterial m issta tem ent. A n auditincludesexam ining,on a testbasis,evidence supporting the anaountsand disclosures in th e generalpurpo se financialstatem ents. A n auditalso includesassessing the accounting principles used and significantestim ates m ade by nm nagem ent,as w ellas evaluating the overallgeneralpurpose financial statem entpresentation. W e believe thatourauditprovidesa reasonable basisforouropinion. In our ot)inion, th e general purpose financial statem ents referred to above present fairly, in all m aterialrespects,the financialposition of the A llen A ction A gency,inc.,a com pojaent unitof the A llen Parish Police Jury,asof June 30,2000,and the resultsof itsoperationsforth e yearthen ended in conform ity w ith generally accepted accounting principles. In accordance w ith Governm entauditin _. gs tandards,we have also issued ourreportdated Decem ber 6,2000,on ourconsideration of A llen A ction A gency,]nc.'sinternalcontroloverfinancialreporting and our testsof itscom plimlce w ith certain provisionsof law s,regulations,contractsand grants David D~'ive, Sult~ W CoHen,qtr~t M organ City,LA Vilapiatle,LA Phone(504) Phone(337) Fax( F~ (33"/) W Sixth Avenue Obetlin,LA pho:a~(337) F~ (337)639~ SouthM ain Street Abbeville,I.a 70Sll phone(337) Fax(339)

4 The oiliersupplem entary inform ation (pages 13-29)ispresented forpurposesof additionalanalysis. The schedule of expenditures of federal aw ards is also presented for purposes of additional analysis as required by the O ffice of M anagem ent and Budget Circular A -133, "A udits of Stales, Local G overnm ents,and N on-profito rganizations," and is not a required partof the basic financialstatem eats. Such informationhasbeen subjected to theauditing proceduresapplied intheauditofthebasicfinancial statem ents and, in our opinion, is fairly staled, in allm aterialrespects,in relation to the basic financial statem entstakerlasa w hole. K older,champagne,slaven & R ainey,ll C Certified Public A ccountants O berlin,louisiana D ecem ber6,2000

5 G EN ERA L PU R PO SE FIN A N C IA L STA TEM EN TS (CO M BINED STATEM ENTS - OVERVIEW )

6 A LLEN A CTION AG EN CY,IN C. A C om ponentu nitof the A llen Parish Police Jury Com bined Balance Sheet-A llfund Typesand A ccountg roups June 30,2000 G overm nental Fund Types G eneral Fund Special Revenue A ccountg roups G eneral G eneral Fixed A ssets Long-term Debt Total (M emorandum Only) A SSETS Cash Receivables: D ue from othergovernm ents D ue from otherfunds D ue from banks Buildings,aul.ornobiles,and equipm ent Construction in progress A m ountto be plovided forretirem ent of generallonḷ,,-term debt Totalassets 1JAI~IL1TIES $48,458 $38,782 $ $ 6,375 3,006 1,978 42, , ,737 $ 54,833 $ 85,935 $ 995, ~.138 $609,138 $ 87,240 3,006 8,353 42, , , ,138 $1,745,604 A ccountspayable Retainagespayable D ue to otherthnds Payrolltaxespayable N ote payable Com pensated absencespayable $ $26,805 $ 27,883 1,978 6,375 7, ,879 9,259 $ 26,805 27,883 8,353 7, ,879 9,259 Totalliabilities 9,346 61, , ,547 FUq~I) EQUITY Fund equity: U nreserved Reserved forrestricted purpose Reserv e forinvestrnent in fixed assets 45,487 24, ,698 45,487 24, ,698 Totalfund equity 45,487 24, , Totalliabilitiesand fund equity $54,833 $85,935 $995,698 $609,138 $1,745,604 The accom panying notesare an integralpartof thisstatem ent. 4

7 A LLEN A CTION A G EN CY,IN C. A Com ponentu nitof the A llen Parish Police Jury Com bined Statem entof Revenues,Expenditures,and Changesin Fund Balances- A llg overnm entalfund Types Y earended June 30,2000 REV EN UES: State and fedcralgrants In-kind contributions O ther G enera Fund Special Revenue $ - $ 1, ,968 16,750 7,339 Total (M emorandum Only) $1,027, ,968 24,089 TotalRevenues 6,750 1,227,662 1,244,412 EX PEN D ITUR F~S Salaries Fringe benefits Travel Program selw ices Capitaloutlay O ther 5, ,956 3, ,356 67,042 14, , , ,790 67,725 14, , , ,968 Totalexpenditures 12,846 1,825,546 1,838,392 Excess(deficiency)of revenues overexpenditures 3,904 (597,884) (593,980) O TH ER FIN AN CIN G SO URCES Proceedsfrom Issuance of D ebt 599, ,879 Excessof Revenuesand othersourcesoverexpenditures 3,904 1,995 5,899 FUN D BA LA N CES -BEG IN N IN G 41,583 22,877 64,460 FU N D BA LAN CES -EN D IN G $45,487 $ 24,872 $ 70,359 The accom panying notesare an integralpartof thisstatem ent. 5

8 A LLEN A CTION A G EN CY,IN C. A Com ponentu nitof the A llen Parish Police Jury N otesto FinancialStatem ents Jane Sum m arv of SienificantA ecountin~ Policies Allen A ction A gency,inc.,incorporated underthe law sof the State of Louisiana on A ugust 19,1965,isanonprofitorganization asdefined by Section 501(c)(3)oftheInternalRevenueCode. Thelawsof the SateofLouisianaexempttheAgency from Louisianataxation.Themajority ofthis agency'!;funding com esfrom governm entgranlsrenew able annually. Based on the follow ing application of criteria,there are no potentialcom ponentunitsw hich shouhlbe included in the A gency's financialstatem ents. The A gency is a com ponentunitof tile A llen Parish Police Jury based on a review of variousentities perform ed by the Louisiana Legislative A uditor's O ffice. It is the opinion of that ofi ce that com m unity action agencies are nonprofit corporations established to perform a public purpose which the parish police jury is statutorily authorized to perform. The police jury appoints two members of the governing board of the community action agency (whichisnotconsidered avoting majority.) However,becausethenature and significanceoftherelationship between thecommunity actionagency and thepolicejury are such,exclusion from thefinancialreporting ofthepolicejury would renderthefinancialstatements incom plete orm isleading. This report includes allfunds w hich are controlled by the A llen A ction A gency,]nc.'sb oard of D irectors. The follow ing is a sum m ary of certain significantaccounting policies A. Basisof Presentation The financial statem ents of the A llen A ction A gency, Inc. have been prepared in conform ity with generally accepted accounting principles (GAAP) as applied to goverm nent units. The G overnm ental A ccounting Standards Board (GA SB) is the accepted standard-seting body for establishing, governm ental accounting and financialreporting principles. B. Ṛ ep _ orting E _ ~ The basic criterion for determ ining w hether a governm ental departm ent, agency,institution,com m ission,public authority,orothergovernm entalorganization should be included in a prim ary govern m entalunit's reporting entity for financial statem ents is financial accountability. Financial accountability includes the appointmentof a voting majority oftheorganization'sgoverning body and theability of the prim ary governm ent to im pose its w illon the organization or if there is a financialbenefit/burden relationship. In addition,an organization that is fiscally dependenton the prim ary governm entshonld be included in itsreporting entity.

9 A LLEN A CTION A G EN CY,IN C. A Com ponentu nilof the A llen Parish Police Jury Notesto FinancialStatem ents(continued) June 30,2000 C. Fnnd A ccounting The accountsof the A llen A ction A gency,inc.are organized on the basisof funds,each of which isconsidered a separate accounting entity. Tile operationsof each fund are accounted for w ith a separate set of self-balancing accounts that com prise its assets, liabilities, fund equity, revenues, and expenditures. The governm entalfundsand the program scom prising them as presented in the financial statem entsare described asfollow s: G eneralfund - The G eneralfund isthe generaloperating fund of the A gency. Itisused to account for all financial resources except those required to be accounted for in anotherfund. These discretionary fundsare accounted forand reported according to the funding source (federal,state,orlocal)from which they arederived. SpecialReveuue Funds- Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. These funds also accountforthe revenues and expenditures related Io federal,state and localgrantentitlem entsprogram s. A ccountg roups- A ccountgroups are used to establish accounting controland accounta bility for the A gency's general fixed assets and general long-term debt. The account groups are notfunds. They are concerned only w ith the m easurem entof financial position,notw ith m easurem entof resultsof operations. G eneral Fixed A ssets A ccount G roun. Fixed assets used govern mental fund type operations (general fixed assets) accounted forin the generalfixed assetsaccountgroup. in are G enerallone-term D ebta ccountg roun to be financed from govern m ental funds generallong-tern ldebtaccountgroup. Long-term debtexpecled is accounted for in the D. Basisof A ccounting Basisof accounting refersto w hen revenuesand expendituresare recognized in the accountsand reported in the financialstatem ents. Basisof accounting relates to the lim ing of the m easurem ents m ade, regardless of the m easurem ent focus applied.

10 A LLEN A C TIO N A G EN CY,IN C. A Com ponentu nitof the A llen Parish Police Jury Notesto FinancialStatements(Continued) June 30,2000 A llfundsare m aintained on the m odified accrualbasisof accounting wherein revenuesare recognized in the accounting period in w hich they becom e available and m easurable. Expenditures are recognized in the accounting.period in which the liability is incurred, if m easurable. "M easurable" m eans the am ount of the transaction can be dete~nined and "available" m eans collectible w ithin the current period or soon enough thereafterto be used to pay liabilities of the currentperiod. G overnm entalfund revenuesare susceptible to accrualif the related expenditure has been incurred as of the balance sheetdate. O therrevenue,notrelaled to a specific expenditure,is recognized w hen received. E. Budlzetand Bud~,etarv A ecountinr F. G eneralfixed A ssets The A gency isnotrequired and did notadopta budgetforthisfiscalyear G eneralfixed assets are notcapitalized in the funds used to acquire them. Instead,capitalacquisitionsare reflected asexpendituresin governm entalfunds,and the related assetsare reported in the G eneralfixed A sseta ccountg roup. A llfixed assetsare stated athistoricalcostorestim ated historicalcostif actualhistoricalcost is notavailable. D onated fixed assets are stated attheirestim ated fairvalue on the date donated. N o depreciation has been provided for any generalfixed assets and presentation of thisaccountinfon~ation isnotintended to purportthem asavailable resourcesforpresentorfuture A gency operations. G. Cash and Interest-B earing D eposits Cash includes am ounts in dem and deposits. U nder state law,the A gency m ay deposit funds in dem and deposits, interest-bearing dem and deposits,or tim e deposits w ith state bank organized under Louisiana law or any other state of the U nited States,orunderthe law sof the U nited States. A s reflected in the Balance Sheet, the A gency has cash carrying value totaling $87,240 atjune 30,2000. Totalbank depositsatyear-end were $141,457. AtJune 30,2000,securitiesvalued at$103,800 w ere held by the pledging financial institution's agent in the A gency's nam e as collateral for bank balances over the FD 1C insured auaountof $100,000.

11 A LLEN A CTIO N A G EN CY,IN C. A Com ponentu nitof the A llen Parish Police Jury N otesto FinancialStatem ents(continued) June 30,2000 H. Com oensated A bsences/chan~ed in Lon~,Term D eb V ested or accum ulated vacation leave that is notexpected to be liquidated w ith expendable available financialresources is reported in the G enerallong-term D ebt A ccount Group. N o liability for sick leave is reported in the financial statem ents since the A gency does not pay any accrued sick leave am ounts at separation. Em ployees accrue vacation and sick leave based on years of service. Em ployees w ith three years of service or less accrue 8 hours of vacation and sick leave,three to five yearsof service perm its 10 hoursof accrual,and em ployeesw ith five orm ore years of service accrue 12 hours. A tjune 30,2000,accrued vacation leave was$9,259. Sick leave was$35,173. Accrued vacation leave (GeneralLongterm DebitAccountGroup)increased by $2,721 from $6,538 atjune 30,1999 to $9,259 atjune 30,2000, Short-term lnterfund Receivable/Payables D uring the course of operations, transactions occur between the G eneral I;tm d and otherfundsforgoodsprovided orservicesrendered. These receivablesand payables are classified as "due from other funds" or "due to other funds" on the 15~alance Sheet. TotalColum nsof Com bined Statem ents--o verview Total colum ns on the com bined statem ents - overview are captioned "m em orandum only" to indicate thatthey are presented only to help w ith financial analysis. D ata in these colum ns do not present financial position, results of operations,or changes in financialposition in conform ity w ith generally accepted accounting principles.n eitherissuch data com parable to a consolidation. Interfund elim inationshave notbeen m ade in the aggregation of thisdata. (2) Board of D irectors'com oensation The Board of D irectorsisa voluntary board;therefore,no com pensation hasbeen paid to any m em ber (3) IncomeTax Status The A llen A ction A gency,inc.,a non-profitcorporation,isexem ptfrom federalincom e taxes undersection 501(c)(3)of the InternalRevenue (/ode.

12 A LLEN A CTIO N A G EN CY,IN C. A Com ponentu nitof the A llen Parish Police Jury Notesto FinancialStatem ents(continued) June 30,2000 (4) C han~esin G eneralfixed A ssets A sum m ary of changesin generalfixesassetsfollow s Balance Balance 07/01/99 A dditions D eletions 06/30/00 B uilding and hnprovem ents A utom obiles Furniture and Equipm ent Conslruction in Progress Land Totals $ 37,995 $ $ - $ 37, , , ,106 77,968 2, , , ,737 10,039 10,039 $285,056 $712,744 $ 2,102 $995,698 (5) n-k ihd Contributions A llen A ction A gency,inc.received in-kind contributionsduring the year,w hich consisted of com m odities furnished at no cost by the State of Louisiana. The totalam ount of com m odities furnished to the A gency during the yearended June 30,2000 totaled $12,702. These com m odities w ere distributed to needy fam iliesduring the year. The value of these com m oditieshasbeen recorded in the Com m oditiesspecialrevenue Fund asa revenue and an expenditure. The A gency also recordsin-kind contributionsforthe H eadstartprogram forvariouspersona services rendered,space donated,travelexpenditures incurred,and other m iscellaneous donations These am ountshave been recorded in the H eadstartprogram SpecialRevenue Fund. (6) Judem ents.c laim sand Sim ilarc ontingencies M anagem enthasrepresented thatthere isno litigation pending againstthe A gency atjune 30, Furtherm ore, the Agency's m anagem ent believes that any potenlial lawsuits would be adequately covered by insurance. The A gency hasnotretained the risk of lossin relation to insurance m atlers. Theirpolicy isto purchase com m ercialinsurance forany of theirneeds. The Agency receives revenues from various Federaland State grant program s w hich are subjectto finalreview and approvalasto allowability ofexpenditures by the respective grantor agencies. A ny setlem entsorexpensesarising outof a finalreview are normally recognized in the period in w hich agreed upon betw een the partiesinvolved. A lso,itism anagem ent'sopinion thatany auditsby the grantoragenciesw ould notproduce disallow ed program costsand liabilitiesto such an extentthatthey w ould m aterially affectthe A gency'sfinancialposition.

13 A LLEN A CTION A G EN CY,IN C. A Com ponentu nitof the A llen Parish Police Jury Notesto FinancialStatements(Continued) June (7) EconomicDepende_nc~ TheAgency receivesthemajority ofitsrevenuefrom fundsprovided through grants. The grantam ounlsare appropriated each yearby the federaland state governm ents. If significantbudget cutsare m ade atthe federaland/orstate level,the am ountof the fundsthe A gency receivescould be reduced significantly and have an adverse im pacton itsoperations. O therthan the discontinuation of the Sum m erchildcare program,m anagem entisnotaw are of any actionsthatwilladversely afectthe am ounlof fundsthe A gency w illreceive in the nextfiscalyear. (8) O ther R eouired D isclosures ])efici!fund balances- The follow ing SpecialRevenue Fundshave deficitfund balancesdue to tim ing of expenditure recognition: C SBG RegularFund Sum m erchild Care Fund LiH eap Fund W eatherization Program Fund $ ,227 1,852 l)ue from O ther G overn m ents --A m ounts due from other agencies are com prised of the follow ing: CSBG RegularFund - Exp.Reim bursem ent lnterfund A ssets/liabilities- The follow ing funds had shortterm loan transactions atjune 30,2000: G eneralfund SpecialRevenue Funds: C SBG Re[,ular Sum m erchild Care Com m odily D istribution H eadstartprogram LiH eap W eatherization Program U nited W ay Total Interfund Receivables $6,375 1,978 $8,353 Interfuad Payables $ 1,978 3, , $8,353

14 A LLEN A CTION A G EN CY,IN C. A Com ponentu nitof the A llen Parish Police Jury N otesto FinancialStatem ents(continued) June 30,2000 Reserved Fund B alances - The specialrevenue fund balances are reflected as reserved for restricted purposes due to nature of tbe funds. A llof the specialrevenue funds are grantprogram s, w hose funds are required to be expended for specific purposes outlined in the various grant docunlents. (9) D efened Com oensation Plan TheAgency maintainsa403(b)plan foritsemployeesof theheadstartprogram and Agency adm inistrative personnel. U nder this plan,there is no fixed dollar am ountof retirem ent benefits. Em ployee and em ployercontributionsdeterm ine the retirem entbenefitsavailable. Contributionsare invested in m utualfunds,which w illbe the custodian. Participantsare eligible by com pleting one m onth of service w ith the A gency. Em ployee contributions cannot exceed 10% of com pensation. Em ployer-~m tributionsare discretionary. V esting isautom atic. Participantsm ay receive loansfrom theirindiv, ~kalaccountsup to tbe lesserof $50,000 or50% of theiraccountbalance. Loansw illbear interestata rate detennined by the plan adm inistrator. The term of loansm ay notexceed 5 years. (lo) Line of C redit Allen Action Agency,Inc.hasan open line of creditof $600,0(10 w ilb Cam eron State Bank, bearing inlerestat8.25 percent,due January 15,2001. AtJune 30,2000 the am ountdraw n on the available line of creditw as$599,879 w ith a balance of $121rem aining to be draw n from the account.

15 SUPPLEM EN TA R Y INFO R M A TIO N

16 SCH ED U LE O F IND IV IDU A L FUN D S 14

17 SPE C IA l,r E V E N U E FU N D S C SBG R egujltr_f_l m d The CSBG Fund accountsforfundsgranted by the U nited StatesD epartm entof H ealth and H um an Services undercom m unity ServicesB lock G rantprogram.thisprogram providesfunds to assistin am eliorating the causesand consequencesof poverty. This fund accounts for m onies received from the U.S.D epartm ent of H ealth and ttum an Services. This program provides child care serv ices prim arily to econom ically disadvantaged preschool children of w orking parents. The Em ergency Energy A ssistance Fund accountsforfundsdonated to localutility com paniesby the public to provide to low incom e fam ilies. The Com m odity Fund accounts for com m odity distributions granted by the U nited States D epartm entof A griculture underthe Food D istribution Program. This fund accountsforfundsreceived from the State of Louisiana D epartm entof Education to be used for the expendituresrelating to the operationsof the child care food program. The H eadstartfund accountsform oniesreceived from the U.S.D epartm entof Health and H um an Serv ices. Thisprogram providescom prehensive health,educational,nutritional,socialand otherservicesprim arily to econom ically disadvantaged preschoolchildren. LiH eap Fund The LiH eap Fund accounts for funds granted by the U nited States D eparhnent of H ealth and H um an Services underthe Low Incom e H om e Energy A ssistance Block G rantprogram. "lhis program assistlow incom e personsw ith m eeting the costsof hom e energy. Thisfund accountsforfundsgranted by the Louisiana D epartm entof SocialServicesand U.S.D epartm ent of Energy. Thisprogram attem ptsto conserve energy and reduce the im pactof rising energy costson low - incom e persortslhrough the installation of energy-conserv ing m easuresin theirdw ellings. E m erpencv Fcm d and Shelter (U nited W av~fund The Emergency Food and Shelter(United W ay)fund accountsforfundsgranted by the Emergency Food and ShelterN ationalboard Program. This fund accounts form onies generated by activitiesof H eadstartparticipantsparents,w hich is undertire co rtrolof the A IIcu A ction A gency,inc.'sboard of D irectors.

18 A LLEN A CTION A G EN CY,IN C. A Com ponentu nitof the A llen Parish Police Jury Com bining B alance Sheet-SpecialR evenue Funds June 30,2000 CSBG Sum m er Food and Regular Child Em ergency Com m odity N utrition G rant Care Energy D istribution Program A SSETS Cash Receivables: D ue from olhergovernm ents D ue from olberfut~ds D ue from banks Totalassets $ 34 3,006 $ 3,040 $ 34 $186 $ 769 $10,626 $186 $769 $10,626 IJA BILITIFiS A ccountspayable Retainagespayable D ue to otherfunds $ 3, $ - $ Totalliabilities 3, FUND EQUITY Fund Equity Reserved forrestricted purpose (225) (227) ,175 Totalliabilitiesand fund equity $ 3,040 $ 34 $186 $ 769 $10,626

19 H eadstart l_,itleap W eatherization U nited H eadstart Fund G ranl G rant W ay Parents Total $ 17,955 $ 925 $ 1,423 $5,876 $ 954 $38,782 42, $ 60,124 $2,903 $ 1,423 $5,876 3,006 1,978 42,169 $ 85,935 $ 16,192 $9,130 27, $ 1,032 2,243 $ - $ - 86 $ 26,805 27,883 6,375 44,400 9,130 3, ,063 15,724 (6,227) (1,852) 5, ,872 $ 60,124 $2,903 $ 1,423 $5,876 $ 954 $ 85,935

20 A Com ponentu nitof the A llen Parish Police Jurỵ Com bining Statem entof Revenues,Expenditures,and Changesin Fund Balances- SpecialRevenue Funds Y earended June 30,2000 C SBG Sum m er Food and Regular Child Em ergency Com m odity N utrition G rant Care Energy D istribution Program REV EN UES: State and federalgrants In-kind con ributions O ther $ 72,579 $ 59,744 $ $ 2,261 12,702 $52,807 Totalrevenues 72,579 59, ,963 52,807 EX PEN D ITU R F~S: Salaries Fringe benefits Travel Program services Capitaloutlay O ther 54,039 5,321 3,941 8,947 40,042 5, , ,705 12,702 19,478 34,081 Totalexpenditures 72,248 60, ,407 53,559 Excess(deficiency)of revenues overexpenditures 331 (1,040) 556 (752) O TH ER FIN AN CIN G SO U RCES: Proceedsfrom issuance of debt Excess(deficiency)of revenues and othelsourcesover expenditures 331 (1,040) (752) FUN D BA LA N CES -B EG INN IN G (556) ,927 FUND BALANCES-ENDING $ (225) $ (227) $ 574 $ 10,175

21 H eadstart Fund l,ih eap W eatherization U nited G rant Program W ay H eadstart Parents Tolal $ 767, ,266 4,069 $43,200 $15,820 $13,031 $ 2,666 $1,027, ,968 7, ,248 43,200 15,820 13,031 2,666 1,227, ,785 54,987 8, , , ,266 3, ,305 3, ,658 9,354 2, ,356 67,042 14, , , ,968 1,536,403 60,471 15,543 9,354 2,198 1,825,546 (584,155) (17,271) 277 3, (597,884) 599, ,879 15,724 (17,271) 277 3, ,995 11,044 (2,129) 2, $ 15,724 $(6,227) $ (1,852) $ 5,790 $ 954 $ 24,872

22 C O M PLIA N C E,IN TERN A L C O N TR O L A N D O TH ER G RA N T IN FO R M A TIO N 20

23 RusselF Champ~g~,CPA V~ orr,slaven,cpa Chr,~Rainey,CPA Cotvad 0 Chapman,CPA P Troy Cou~ile,CPA A len J LaBly.CPA Pecw,yAt,gel~ S~ugglns CPA MaryT lhibodeaux,cpa Goteld A Thibodesux. Jr,CPA KelyM Doueet,CPA Kenn,eth J Rachal,CPA K O LD ER,C HA M PA G N E,S LA V EN & RA IN EY,LLC CERTIFIED PUBLIC ACCOUNTANTS P.O.Box 539 O berlin.la Phone (337) Fax(337) W EB SITE VCCCVV KC SRCPAS COM M EM BER OF: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOCIETY OF LOUISIANA CERTIFIED PUBLIC ACCOUNTAN TS REPO RT ON CO M PLIAN CE A N [)ON IN TERN A L CON TRO L O V ER FIN AN CIA L REPO RTIN G BA SED ON AN A U D IT O F FIN AN CIA L STA TEM EN TS PERFORM ED 1N A CCO RD AN CE W ITH G O V ERN M EN T A U D ]T1N G STA N D A RD S To the Board of D irectors A llen A ction A gency,inc. A Com ponenlu nitof the A llen Parish Police Jury O berlin,louisiana W e have audited the general purpose financial statem ents of the A llen A ction A gency, Inc., a com ponentunitof the A llen Parish Police Jury,asof and forthe yearended June 30,2000,and have issued ourreportthereon dated D ecem ber6,2000. W e conducted ourauditin accordance w ith generally accepted auditing standards and the standards applicable to financial audits contained in Governm ent Auditing Standards,issued by the Com ptrollerg eneralof the U nited States. Com pliance A s part of obtaining reasonable assurance aboutw hether the A llen A ction A gency,inc.'s general purpose financialstatem ents are free of m aterialm isstatem ent,w e perform ed tests of its com pliance w ith certain provisions of law s,regulations,contractsand grants,noncom pliance w ith w hich could have a direct and m aterialefecton the determ ination of financialstatem entam ounts. H ow ever,providing an opinion on compliancewith thoseprovisionswasnotan objective ofourauditand,accordingly,we do notexpresssuch an opinion. The resu lsof ourtestsdisclosed no instancesof noncom pliance thatare required In be reported underg overnm enta uditint,standards. InternalControlO verfinancialrenortine In planning and perfora ting ouraudit,w e considered the A llen A ction A gency,inc.'s internalcontrol over financialreporting in order to determ ine our auditing procedures for the purpose of expressing our opinion on the generalpurp ose financialstatem entsand notto provide assurance ou the internalcontrolover financialreporting.h ow ever,w e noted a certain m atterinvolving the internalcontroloverfinancialreporting and itsoperation thatwe considerto be a reportable condition.reportable conditionsinvolve m atterscom ing to our attention relating to significantdeficiencies in the design or operation of the internalcontrolover financialreporting that,in ourjudgment,could adversely affecttheallen Action Agency,Inc.'sability to record,process,sum m arize and report financialdata consistentw ith the assertions of m anagem ent in the generalpurp ose financialstatem ents. The reportable condition is described in the accom panying schedule of findingsand questioned costsin Part1I,Section B,referencenumber00-1(IC). 2)4RI,eB~ uregard L,f,yeu,:, t^ 7050B Phone(337} I1~(333) EastBrldg~Street 133EastW addll 1234DavidDrive, $uile W CotlonStrut Br~ ux Bridge,1A M Irksville, LA M organcily,la T0380 VillePIatle,LA Phone(337) phone(31g) Phone(504)~ Phone(337)363-2"/92 FL~(337) I:~ (318) Fsx{504) Fax(337) W Sixth Avenue Oberlin,LA Phone(~37)639~1737 F~ (}37)639~tS6~ 200Sc~thM ain S~ t Ab~ vill~.la Phone(337)893-?944 ~tx(337)~93-~946

24 A m aterialw eakness is a condition in w hich the design oroperation of one orm ore of the internal control com ponents does not reduce to a relatively low level the risk that m isstatem ents in am ounts that w ould be m alerialin relation to the generalpurpose financialstatem entsbeing audited m ay occurand notbe detected w ithin a tim ely period by em ployeesin the norm alcourse of performing theirassigned functions. O urconsideration of the internalcontroloverfinancialreporting w ould notnecessarily disclose all m atters ilthe internalcontrolthatm ightbe reportable conditions and,accordingly,w ould notnecessarily disclose allreportable conditions that are also considered to be m aterial w eaknesses. W e consider tile reportable condition described in the accom panying schedule of findingsand questioned coststo be a m aterial w eakness. W e ~dso noted anotherm aterinvolving the intern alcontroloverfinancialreporting thatw e have reported to the m anagem entof the A llen A ction A gency,inc.in a separate letterdated D ecem ber6,2000. This reportis intended solely for the inform ation and use of A llen A ction A gency's m anagem ent, othersw ithin the A gency,the Board of D irectors,and federalaw arding agenciesand pass-through entitiesand isnotintended to be and should notbe used by anyone otherthan these specified parties. K older,champagne,slaven & R ainey,ll C Certified Public A ccountants O berlin,louisiana D ecem ber6,2000

25 C BJrt~l)(oLder,CPA RusselF Chempagne,CPA Vl~C#R ~ v~n,cpa ChfilRW~ y,cpa C~ rad0 Chapman.CPA P ~roy Cou*vil~e,CPA Alen J lebry,cpa Penny/V~gel~ S~ gohls CPA Mary T lhibodeaux,cpa GersId A TPabodeaux,Jṛ, CPA Koly M DOLCeI,CPA KorgmtrlJ Rech4ṭCPA K O LD ER,C HA M PA G N E:,S LA V EN & RA IN EY,LLC CERTIFIED PUBLIC ACCOUNTANTS P.O.Box 539 O berlin,la Phone (337)639~1737 Fax (337) W EB SITE "~t~ N KCSRCPAS COM MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOCIETY OF LOUISIANA CERTJFIEC PUBLIC ACCOUNTANTS REPORT ON COM PLIANCE W ITH REQUIREM ENTS APPLICABLE TO EACH M AJOR PROGRA M AN [)IN TERN A L CON TRO l.ov ER COM PLIAN CE IN A CCORDAN CE W ITH OM B CIRCULA R A -133 To the Board ori)irectors A llen A ction A gency,inc. A Com ponentu nitof the A llen Parish Police Jury O berlin,louisiana Com pliance W e have audited the com pliance of the A llen A ction A gency,inc.,a com ponentunitof the A llen Parish Police Jury,w ith the typesof com pliance requirem entsdescribed in the "U.S.O ffice of M anagem ent and Budget(OM B)CircularA-133ComplianceSupplement" thatareapplicableto each of itsmajorfederal programsfortheyearended June30,2000. TheAllen Action Agency,Ine.'smajorfederalprogramsare identified in the sum m ary of auditor's results section of the accom panying schedule of findings and questioned costs. Com pliance w ith the requirem entsof law s,regulations,contractsand grantsapplicable to eachofitsmajorfederalprogramsistheresponsibility ofthea len Action Agency,lnc.'smanagement.Our responsibility is to express an opinion on the A llen A ction A gency,lne.'s com pliance based on ouraudit. W e conducled ourauditof com pliance in accordance w ith generally accepted auditing standards;the standards applicable to financial audits contained in G overnm ent A uditing Standards, issued by the Com ptrollerg eneralof the U nited States;and O M B C irculara -133,"A uditsof States,LocalG overnm ents and N on-profito rganizations." Those standardsand O M B CircularA -133 require thatw e plan and perform the audit to obtain reasonable assurance about w hether noncom pliance w ith the types of com pliance requirementsreferred to above thatcould have a directand materialeffecton a majorfederalprogram occurred. A n audit includes exam ining,on a testbasis,evidence aboutthe A llen A ction A gency,lnc.'s com pliance w ith those requirem entsand perform ing such otherproceduresasw e considered necessary in the circum sta nces.w e believe thatourauditprovides a reasonable basis for ouropinion. O ur auditdoes not provide a legaldeterm ination on the A llen A ction A gency,ine.'scom pliance w ith those requirem ents. In our opinion, the A llen A ction A gency, Inc. com plied, in all m aterial respects, w ith the requirementsreferred to abovethatareapplicableto itsmajorfederalprogramsfortheyearended June30, LustEhldge$u~ t 133 Ic~ lw Bddil 1234Dtvld l)rlve,suite W.Cotton $~ Br~ uxbrldge,la M rfolvilie, LA },orgtncity,l,a VilePlati~,LA Phone(337133;~020 Phone(318) Phone(504) Phone(337) Fix037J "I Fix(318)253-86RI F~ (504) Ft~(337) W si~t~ Arg ue Oberlin, LA Phone(337) F~ (337)639~ South M =i. su,~ Abb~ iile,la Phone(337) Fix(337)

26 nternalcontrolo vercom nliance The m anagem entof the A llen A ction A gency,inc.is responsible for establishing and m aintaining effective internal control over com pliance w ith requirem ents of law s, regulations, contracts and grants applicable to federalprogram s. In planning and perform ing our audit,w e considered the A llen A ction A gency,inc.'sinternalcontrolovercom pliance w ith requirem entsthatcould have a directand m aterialeffecl on amajorfederalprogram in orderto determineourauditing proceduresforthepurposeofexpressing our opinion on com pliance and to testand reporton internalcontrolovercom pliance in accordance w ith O M B C irculara O urcorlsideration of the internalcontrolovercom pliance w ould notnecessarily disclose allm atters in the internalcontrolthatm ightbe a m aterialw eakness. A m aterialw eakness is a condition in w hich the design oroperation of one orm ore of the internalcontrolcom ponentsdoesnotreduce to a relatively low level the risk thatnoncom pliance w ith applicable requirem entsof law s,regulations,contractsand grantsthatw ould bematerialinrelation to a majorfederalprogram being audited may occurand notbedetected within atimely period by em ployees in the normalcourse of perform ing their assigned functions. W e noted no m atters involving internalcontrolovercom pliance and itsoperation thatw e considerto be m aterialw eaknesses. This reportis intended solely forthe information and use of A llen A ction A gency's m anagem ent, othersw ithin the A gency,the Board of D irectors,and federalaw arding agenciesand pass-through entitiesand isnotintended to be and should notbe used by anyone otherthan these specified parties. K older,champagne,slaven & R ainey,ll C Certified Public A ccountants O berlin,louisiana D ecem ber6,

27 ALLEN ACTION AG EN CY,IN C. A Com ponentu nitof the A llen Parish Police Jury SCHEDULE OF EX PEN DITURES OF FEDERAL AW ARDS YearEnded June Pass-through Federal Entity CFD A Identifying Federal N um ber N um ber Expenditures U.S.D epartm entof Health and Hum an Services Headstart* $ U.S.D epartm entof Health and Hum an Services Passed Throu gh the State D epartm entof SocialServices- LiHeap Sum m erchikl(!are , Passed Through the State D epartm entof Labor- Com m unity Service Block Grant TotalD epartm entof H ealth and H um an Serv ices N , U.S.Departmenlof Agriculture Passed Through the State Departm entof Agriculture and Forestry Em ergency Food A ssistance Program -N eedy Fam ily Food D istribution Passed Through thestate D epartm entof Education - Child Care Food Totall)epartm entof A griculture ,559 55,264 D epartm entof Energy Passed Through the State D epartm entof SocialServices- W eatherizalion ,543 FederalEmergency M anagementagency (FEM A) Passed Through the Em ergency Food and ShelterProgram N ationalboard Food and Shelter ,354 Totalotherfederalas sistance Totalexpendituresof federalaw ards $1,625,732 *M ajorfederalfinancialassistanceprograms 25

28 A LLEN A CTION A G EN CY,IN C. A Com ponentu nitof the A llen Parish Police Jury N otesto Schedule of Expendituresof FederalA w ards Y earended June 30,2000 (1) General The accom panying Schedule of Expenditures of FederalA w ards presents the activity of all federalfinancialassistance program s of the A llen A ction A gency,inc. The A llen A ction A gency, Inc.reporting entity isdefined in N ote lto the financialstatem entsforthe yearended June 30,2000. A llfederalfinancialassistance received directly from federalagenciesisincluded on the schedule as w ell as federal financial assista nce passed through other governm ent agencies. The H eadstart Program wasconsidered a majorfederalprogram forthea len Action Agency,Inc. (2) Basisof Accounting The accom panying Schedule of Expenditures of FederalA w ar ds includes the federalgrant activity of the A nen A ction A gency,lnc.and is presented on the accrualbasis of accounting. The inform ation in thisschedule ispresented in accordance w ith the requirem entsof O M B circulara -133, "A uditsof States,LocalG overnm ents,and N on-profitorganizations." (3) Relatienshin to FederalFinancialReoort A reconciliation of tota l expenditures of federal aw ards reported in the Schedule of Expendituresof FederalA w ardsto totalexpensespercom bined statem entof revenues,expenditures, and changesin fund balancesisasfollow s: Totalexpensespercom bined statem entof revenues,expenditures,and changesin fund balances--allgovernm entalfund types $1,825,546 Less: In-kind contributions N on-federalexpenses Totalexpendituresperschedule of federalaw ards 192,968 6,846 $1,625,732 The totalin-kind contributionsof $192,968 w ere forfederalprogram s

29 A LLEN A CTION A G EN CY,IN C. A Com ponentu nitof the A llen Parish Police Jury Schedule of Findingsand Questioned Costs Y earended June 30,2000 Sum nrarv of A uditors'results The auditors'reportexpresses an unqualified opinion on the financialstatem ents of A llen A ction A gency,inc. 2. A reportable condition in internal control w as disclosed by the audit of the financial statem ents.the reportable condition w asconsidered to be a m aterialw eakness. 3. N o instancesof noncom pliance w ere disclosed by the auditof the financialstatem ents. 4. No reportableconditionsin internalcontrolovermajorprogramsweredisclosed by theaudit of the financialstatem ents. 5. The auditors'report on compliance forthe majorfederalaward programs expresses an unqualified opinion on allm ajorprogram s. 6. Theauditdisclosed no reportableconditionsovermajorprogramsrequiredto bereported undersection 510(a)of CircularA Themajorprogram was U.S.D epartm entof H ealth and H um an Services: H eadstart,cfi)a!) The dollarthreshold used to distinguish betw een Type A and Type B progra m s,asdescribed ilsection 520(b)of CircularA-133 was$300, A llen A ction A gency,inc.did notqualify asa low risk auditee Finditm s w hich are reuuired to be reoorted in accordance w ith ~enerallv aeeeoted G overnm enta A uditing Standards A. Com pliance Findings- There are no com pliance findingsto be reported atjune 30,2000 B. InternalControlFindings 00-](IC) Segregation ofduties O ne person iscurrently perform ing the function of preparing disbursem ents recording thedisbursementsin thejournals,and posting to thegeneralledger Segregation of duties should be such that one person is not charged w ith preparing disbursementsandposting to thejournalsand ledgers. 27

30 A LLEN A CTION A G EN CY,IN C. A Com ponentunitof the A llen Parish Police Jury Schedule of Findingsand Questioned Costs(Com inued) Y earended June 30,2000 Segregation of duties necessary forpropercontrolsare notin place,allow ing one person to have controlovertw o accounting functions w hich should be separate. Recom m endation: W e recom m end that the Executive D irector,as w ellas the Board of D irectors, take an active interest in the review of all of the financial inform ation. W e do note thatthis situation is inherentto m ostagencies of thistype and isdifficultto solve due to funding lim itations. Thisw asalso a prioryearfinding. Response W e concurw ith the recom m endation. The Executive D irectorand the Board of D irectors w illcontinue to take an active role in the day to day operations of the A gency. C. M anagem entletter- O0-2(M L) H eadstartprogram Poverty LevelG uidelines Headstart program poverty level guidelines are not heing m onitored sufficiently. Criteria The group of H eadstart students w ho exceed tile poverty level guidelines should be m onitored to ensure that itdoes not exceed 10% of the student population asa w hole Failure to m onitorthe poverty levelguidelinescould resultin noncom pliance w ith the H eadstart program grant agreem ent by exceeding the 10% m axim um level. Recom m endation: W e recom m end that the poverty level guidelines for Headstart be m onitored m ore closely to ensure thatthe group of students exceeding the poverty level does not exceed the m axim um 10% level required by the H eadstartprogram grantagreem ent.thisw asalso a prioryearfinding. Response: W e concur w ith the recom m endation. The Execu'dve D irector and the H eadstart Program D irectorw illm onitorthe poverty levelguidelines m ore closely. Part I11. Findim.,sand questioned costsforfederalaw ardsw hich include auditfindinj~sasdefined in Section a)of CircularA -133 There are no findings to be reported underthissection atjune 30,2000

31 c~ c~