Pelease Date~-4M.I.6_./_!.~999

Transcription

1 (!r -~ ~?5 -r.:% ':,:',~i",i:/l~ct EV A N G ELIN E C O M M U N IT Y A C TIO N,IN C V ille Platte,Louisiana FinancialReport Y earended January 31,1999 Underprovisions of~tafe law. th~s report is a i);. tbq!':,.k;.'.m m rnt. A copy oftho ~~-t)o~~.ii;:~.~t,b~.~tts~;bm itted to the z,'jdited, o:'~sv'.ewed, entity and othg;~.'~'~r~,'opl;~t,~:public oficials. ~ha r;:~.,o;z;.~ #~.,:il.:~!:4e for OU~,lic i,'~sf~,.-'.ciio;~ at ii-;<~. [~aton Ro~~ c 6f%:.:e ofthe, Ị.';:~;{s!~k~iv~tkuditot ~.'.nd, w l~e/e z'2b~,pr;ate, atthe office o~t~e parish clerk ofcourt. Pelease Date~-4M.I.6_./_!.~999

2 C BLI~ Kok~rCPA RusseiF Char~pagne CPA ~clorr SlaV~ CPA Chris Rai~ V CPA ~ O C~ n.cpa P TroyCOut~lle CPA Per~/A~ e~e Sc~gglns CPA Mary T Th.bodea~ CPA G~r~dA T~bodeB~ Jr.CPA KeLly M Do~ etcpa Ks~ th J RachsICPA K O LD ER,C H A M PA G N E,S LAV EN & RA IN EY,LLC CERTIFIED PUBLIC ACCOUNTANTS M r.g ervislafleur,executive D irector and M em bersof the Board of D irectors Evangeline Com m unity A ction,inc. M AN A G EM EN T LETTER 234 Ru.eBea~egaro Lafayeue LA 70S08 Phor,e(318} Fax1318) EsstBnoge bveel Bres~ Bndge EA T0517 Pho~~[318) Fax1318) EBSIW ad01 Ma~ Ie LA phc~e{318)25~9252 Fax(31B)25~ Da~0 Drive Sute105 M~ganO~,LA 7O380 Phone (504) Fax(504)38~ W Con~ $~eet ~lepia~e LAT0586 PhCY:~1318)36~2792 Fax(318)36~304g 332W SixltlAver~e Obe~n.LA Phone(318)63~4737 FaX(318)63~4568 D aring ourauditof the financialstatem entsof the Evangeline Com m unity A ction,inc.forthe year ended January 31,1999,the follow ing item w asnoted: Regarding the Headstartprogram,a listing should be m aintained of all children served w ho m eetthe disability guidelinesin orderto determ ine if the 10% disability requirem entisbeing adhered to. W e would like to express our appreciation to you and your ofi ce staff forthe courtesies and assistance rendered to usduring the perform ance of ouraudit.should you have any questions orneed assistance in im plem enting any suggestions,please feelfree to contactus. K older,cham pagne,slaven & R ainey,ll C Certified Public A ccountants V ille Platte,Louisiana Jtdy 1,1999 MEMBER OF ~ ERIC~ IN~ I~ E OF S~ I~ OF L~ ISI~ CERTIFIEO ~ Bk~C ACCO~ ~

3 TA BLE O F CON TEN TS Page IndependentA uditors'report FIN AN CIA L STA TEM EN TS Statem entof financialposition Slalem entof activity Statem entof funclionalexpenses Statem entof cash flow s N otesto financialstatem ents SU PPLEM EN TA L IN FO RM ATION IN D IV IDU A L PRO G RA M S Com bining statem entof financialposition Schedule of grantrevenue IN TERN AL CON TROL,COM PLIAN CE AN D OTHER GRAN T IN FORM ATION ReportoilC om pliance and on InternalControl O verfinancialreporting Based on an A uditof FinancialStatem entsperform ed in A ccordance w ith G overnm enta uditing Standards Report on Com pliance w ith Requirem entsa pplicable to Each M ajorprogram and on InternalControlOver Com pliance in A ccordance w ith O M B CircularA -133 Schedule of expendituresof federalaw ards N otesto schedule of expendituresof federalaw ards Schedule of findingsand questioned costs Sunlm ary schedule of priorauditfindings Corrective action plan

4 c B,~ Kc/4~ r,cpa Russe~F Chgrnpa~qe,CPA VlCl~ R S4aven, CPA ChrisRain y.cpa Co~ad O Chaptnan CPA P lroy cou~a)e,cpa Per,lyAngeBeScmg~ns CPA ManfT ~rdbo~ee~ CPA Gerak~A Thlbode~~ Jr CPA Vet/M D~ cetcpa Ke~ e#)j RachalCPA K O LD ER,C HA M PA G N E,SLAV EN & RA IN EY,LLC CERTIFIED PUBLIC ACCOUNTANTS IndependentA uditors'report 234 Rue Bea~egard Lafaye,e LA Phone (318) Fax13~8} Eastendge S'Je el Bream Bridge LA Phone(318) F~Xl3~B) Ea$~W addl Marks~le LA phonei318) Fax(318)253~ (Ba~d D[]ve Suite 105 MorganCpty LA Phone(504) Fa~(504) ~ w c~ ~'Veer V6e P~ate LA Ph~ e(318)362~2792 Fa~(318} W Stx~ Ave~ e Obenln LA Phonei358>63~4737 Fax(318)63%4558 M r.g ervislafleur,executive D irector,and M em bersof the Board of D irectors Evangeline Conm m nity A ction,inc. W e have audited the accom panying statementoffinancialposition of the Evangeline Com m unib Action,Inc.(a nonprofitorganization) as of January 31, 1999,and the related statem ents of aclivilics, functionalexpenses,and cash flow sforthe yearthen ended. These financialstatem entsarc the responsibility of the m anagem eutof Evangeline Com m unity Action,Inc. O urresponsibility is to express an opinion on these financialstatem entsbased on ouraudit. W e conducted ourauditin accordance w ith generally accepted auditing standards and the standards applicable to financial audits contained in Governm ent A uditing Standards, issued by the Com ptroller G eneralof the U nited States. Those standardsrequire thatw e plan and perform the auditto obtain reasonable assurance about w hether the financial statem ents are free of m aterial m isstatem ent. A n audit includes exam iniug,on a testbasis,evidence supporting the am ountsand disclosures in the financialstatem ents. A n audit also includes assessing the accounting principles used and the significant estim ates m ade by m anagem ent,as w ellas evaluating the overallfinancialstatem entpresentation. W e believe thatour audit providesa reasonable basisforouropinion. ME,~BE~ OF ~ Em C~ INSTIVJTEor CERTIFIEO PUBtlC ^CCOU~CrlW TS S~ IE]y OF[OU~Sl~ CENTIFIEO PUBLIC ACCE S S

5 O urauditw as perform ed forthe purpose of form ing an opinion on the basic financialstatem ents of Evangeline Com m unity A ction,inc.taken asa w hole.the accom panying schedule of expendituresof federal aw ards as required by U.S.O ffice of M anagem ent and Budget C ircular A -133, A udits of States Local Governm ents and N on-profit O rganizations, and the financial inform ation listed as "Supplem ental hlform ation" in the table of contents,are presented forpurposesof additionalanalysisand are nota required partofthebasicfinancialstatements.such information hasbeen subjected to theauditing proceduresapplied ilthe auditof the basic financialstatem entsand,in ouropinion,isfairly stated,in allm aterialrespects,in relation to the basic financialstatem entstaken asa w hole. K older,cham pagne,slaven & R ainey,ll C Certified Public A ccountants V ille Platte,Louisiana July 1,1999

6 FIN A N C IA L STA TEM EN TS

7 EV AN G ELIN E CO M M UN ITY ACTION,1N C V ille Platte,Louisiana Statem entof FinancialPosition January 31,1999 A SSETS Currentassets: Cash D ue from governm entalunits Totalcurrentassets $108, , ,346 Fixed assetsatcost-lessaccum ulated depreciation of$313,113 Totalassets $313,662 LIA BILITIES AN D N ET A SSETS Liabilities- C urrentliabilities: C ash overdraft A ccountspayable A ccrued liabilities D eferred revenue Totalcurrentliabilities $ 64,996 33,718 14,996 75,031 88,741 N etassets- U nrestricted netassets: O perations Fixed assets Totalunrestricted netassets 22, , Totalliabilitiesand netassets $313,662 The accom panying notesare an integralpartof thisstatem ent

8 EV AN G ELIN E CO M M UN ITY A CTION,IN C V ille Platte,Louisiana Statem entof A ctivity Forthe Y earended January 31,1999 O perations U nrestricted Fixed A ssets Support: G overnm entgrants D onated servicesand facilities M iscellaneousincom e $1,920, , $1,920, , Totalsupport 2,196,516 2,196,516 Expenses: Program serviceslteatcrisis LIH EA P CLECO Energy G rant M igrant Food serv ices Com m odities Com m unity ServicesB lock G rant H eadstart Sum m erchild care 132,419 88,525 13,079 13, ,115 71, ,090 1,328, , , ,419 88,525 13,079 13, ,115 71, ,090 1,360, ,582 Totalexpenses 2,136,526 32,436 2,168,962 Change in netassets 59,990 (32,436) 27,554 O therchangesin netassets A dditionsto fixed assets M iscellaneous Totalotherchanges (49,558) (420) 49,558 (420) (49,978) 49,558 (420) N etunrestricted assets,beginning 12,593 85,194 97,787 N etunrestricted assets,ending $ 22,605 $102,316 $ 124,921 The accom panying notesare an integralpartof thisstatem ent.

9 c~ P~

10 EVANG ELIN E CO M M UN ITY ACTION,INC V ille Platte,Louisiana Statem entof Cash Flow s Forthe Y earended January 31,1999 C ash flow sused foroperating activities Change in netassets Adjustmentsto reconcilechangein netassets to /letcash provided by operating activities: D epreciation Increase in grantreceivable D ecrease in otherreceivables D ecrease in accountspayable Increase in accrued liabilities D ecrease in due to governm entalunits Increase in deferred revenue $ 27,134 32,436 (49,684) 420 (24,590) 1,31o (94) 8,288 N etcash provided by operating activities C ash flow sfrom investing activities Purchase of equipm ent N etdecrease in cash and cash equivalents Cash,beginning of period Cash,end of period (4,780) (49,558) (54,338) 97,618 $ 43,280 Tile accom panying notesare an integralpartof thisstatem ent

11 EVAN G ELIN E COM M UN ITY ACTION,1N C V ille Plate,Louisiana N otesto FinancialStatem ents (i) m m arv of SianificantA ccountim~polic A. N ature of A ctivities EvangelineCommunity Action,Inc.(TileAgency)isanon-profitorganization which w asorganized on February 25,1965,and w hich shallcontinue in existence fora period of 99 years from that date unless dissolved earlier. It receives grants from federaland state governm entsto conductvarious com m unity service program s,and its prim ary purpose isto betterthe conditionsunderw hich people in the Evangeline Parish area live. B. FinancialStatem entpresentation Evangeline Com m unity Action,Inc.hasadopted the provisionsof Statelnentsof Financial A ccounting Standards N o. 117, "Financial Statem ents of N ot-for-profit O rganizations". Statem entn o. 117 requires Evangeline Com m unity Action,Inc.to report inform ation regarding its financial position and activities according to three classes of net assets: unrestricted net assets, tem porarily restricted net assets and perm anently restricted net assets. In addition,the agency is required to present a statem entof cash flow s. C. Basisof A ccounting The accom panying financialstatem ents are presented on the accrualbasis of accounting in accordance w ith generally accepted accounting principles. D. Fixed A ssetsand D eoreciation Fixed assetsare recorded atcost. Depreciation of fixed assetsiscalculated on the straight-line basis overan estim ated usefullife of five years.the A gency follow s the practice of capitalizing allexpenditures for equipm entand fixtures in accordance w ith each program sgrantguidelines. E. Budgels Evangeline Com m unity A ction,inc.does not adopt budgets on a fiscalyear basis. Each grantprogram 'sbudgetis based on its individualprogram yearend and is approved by the program atthe inception of the program. Budgetary am endm entsm ust generally be approved by the program asw ell,

12 EVAN GELIN E CO M M UN ITY ACTION,IN C V ille Platte,Louisiana Notesto FinancialStatements(Continued) F. Com pensated A bsences Vacation and sick leave are recorded as expenditures of the period in which paid. Sick leave isaccumulated at1 1/2 day'spay perm onth butisnotpayable upon term ination or resignation. A nnualleave accum ulates atthe rate of 1 1/2 days per m onth afterthe firstthree m onths.u pon term ination orresignation,a m axim um of nine dayscan be paid to theem ployee.also,only nine dayscan be carried overfrom yearto year. A ny liability Evangeline Com m unity A ction,inc.m ighthave in this regard at January 31,1999,isconsidered im m aterial;therefore,tm liabilily hasbeen recorded in the accounts. G. D onated Servicesand M aterials H. Statem entof Cash Flow s The Evangeline Com m unity A ction A gency, Inc.considers all highly liquid investm entsw ith m aturity of three m onthsorlessatthe date of acquisition to be cash equivalents. TotalColum ns Total colum ns are presented to facilitate financial analysis. D ata in these colum ns do not present financialposition,results of operations and changes in net assetsin conform ity with generally accepted accounting principles.neitherissuch data com parable to a consolidation. The Agency qualifiesasa tax-exemptorganization undersection 501(c)(3)of the InternalRevenue Code and,therefore,no provision forfederalincom e taxesism ade in the accom panying financialstatem ents.

13 EVAN GELIN E CO M M UN ITY ACTION,INC V ille Platte,Louisiana Notesto FinancialStatements(Continued) K. Estim ates The preparation of financialstatem ents in conform ity w ith generally accepted accounting principles requires m anagem ent to m ake estim ates and assum ptions that affectcertain reported am ountsand disclosures. A ccordingly,actualresultscould differ from those estim ates. (2) D ue From G overnm entalu nits A m ountsdue from governm entalunitsconsisted of the follow ing atjanuary 31,1999 G rantfundsdue from Louisiana D epartm entof Education forfood ServicesProgram G rantfundsdue from U.S.D epartm ent of H ealth and H um an Servicesfor H eadstart Program $ ,664 $103,070 (3) Fixed Assets Fixed assetsatjanuary 31,1999 consisted of the follow ing Furniture,fixture and equipm ent A utom obiles Less: A ccum ulated depreciation $193, , ,429 (313,113) $102,316 (4) Operating Leases The Evangeline Com m unity A ction A gency,inc. leases various buildings under operating leasesexpiring in variousyears. The m ininm m annualcom m itm entsunderthese operating leasesare considered to be im m aterial. 0

14 EVAN GELIN E COM M UN ITY A CTION,1N C V ille Platte,Louisiana Notesto FinancialStatements(Continued) (5) Retirem ent Em ployeesof the Evangeline Com m unity A ction A gency,inc.have the option of participating in a defined contribution retirem entplan. The A gency'scontributions are equalto 3% of the annual salary of participating em ployees. D uring the yearended January 31,1999,the Agency'scontribution to lbe plan totaled $12,097. (6) Pending Litigation There is no pending litigation againstthe Evangeline Com m unity A ction A gency atjanuary 31,1999. (7) M em bers of the Board of D irectors of Evangeline Com m unity Action, Inc. receive no com pensation and are reim bursed only forany expenses incurred relating to the A gency's business, w hich m usthave appropriate supporting docum entation. (8) Contributed Facilities.Services.and M aterials Contributed facilitiesrepresenttheestim ated fairrentalvalue of office and storagespace. The totalcontribution forthe yearam ounted to $60,905.Contributed servicesrepresentvolunteerteaebers, doctors,and attorneysin which the value of the service createsorenhancesnonfinancialassetsorthe service is specialized and w ould otherwise be purchased if notprovided by donation. Contributed services are reflected in the financial statem ents at the fair value of the services received w hich am ounted to $214,763 forthe yearended January 3 I,1999.

15 EVAN G ELIN E COM M UN ITY ACTION,IN C V ille Platte,Louisiana Notesto FinancialStatements(Continued) (9) GrantRevenue TheAgency'smajorsourceofrevenueisgrantsfrom federaland stategovernmentalentities. The use of these funds isrestricted to the purpose setforth in the individualgrantagreem ents. Such grantagreementsaresubjectto review and auditby governmentalagencies.such auditscouldresult il a request for reim bursem ent by the grantor for expenditures disallow ed under the term s and conditionsof the appropriate agency. In the opinion of Evangeline Com m unity Action A gency,inc., such disallow ances,if any,w illnotbe significant. 0 0) Year2000 Issue {U naudiled The Y ear2000 Issue isthe resultof shortcom ingsin m any electronic data processing system s and otherelectronic equipm entthatm ay adversely affectthe A gency's operations as early as fiscal year1999. The Evangeline Com m unity Action,Inc.has com pleted an inventory of com puter system s and otherelectronic equipm entthatm ay be affected by the year2000 issue and thatare necessary to conducting the com m ission'soperations. The A gency haspurchased and placed in service software and hardw are believed to be Y ear2000 com pliantforthe financialreporting system. Because of the unprecedented nature of the Y ear2000 Issue,its effectand the success of related rem ediation efforts w ill not be fully determ inable until the year 2000 and thereafter. M anagem ent cannot assure that the A gency is or w ill be Year 2000 ready, that the Agency's rem ediation efortsw illbe successfulin w hole orin part,orthatparties w ith whom the A gency does businessw illbe year2000 ready. 2

16 SU PPLEM EN TA L INFO R M A TIO N

17 IN D IV ID U A L PR O G R A M S/FU N D S M igrantp rogram - To accountforfederalgrantfundspassed through the Louisiana D epartm entof Education to be used forprogram san d activitiesto benefitthe children of m igrantfam iliesin the area. To accountforreceiptan d expenditure of federalgrantfundspassed through the Louisian a D epartm entof Education form ealsforneedy children ath ead Startlocationsan d in private hom es. C om m odities - To accountforthe receiptan d expenditure of federalgrantfundsand com m odities passed through the Louisian a D epartm ent of A griculture an d Forestry to be used to distribute donated food com m oditiesto needy households. To account for the receipt an d subsequent use of federal gran t funds passed through the Louisian a D epartm entof Laborto be used foradm inistrative and otherbudgeted purposes. H ead StartProgram - To accountforthe receiptan d expenditure of fundsreceived from the U.S.D epartm entof H ealth & H um an Services for H ead Start, w hich provides educational, psychological, nutritional,m edical,dentalan d socialserv icesto needy pre-schoolchildren in the area. To account for local funds received from CLECO for energy assistance. This is a discretionary gran t. To account for the receipt an d subsequentuse of federalgran t funds passed through the Louisiana D epartm entof H ealth & Hum an Resources to be used forthe paym entof hom e energy billsforqualifying residentsof the area. 14

18 INDIVIDUAL PRO GRAM S/FUNDS (CONTINUED),~nm m er C hild C are P ropram - To account for the receipt and disbursem ent of federalgrant funds passed through the Louisiana D epartm ent of Social Services, O fi ce of Fam ily Support, w hich provides educational,psychological,nutritional,m edical,dentaland social services to needy preschoolchildren in the area during the sum m ermonths. ~Fixed Assets Fund - To accountforthe fixed assetsof the corporation an d depreciation provided on those assets. ]PiayrollFund - The clear ing account w hich is used for the disbursem ent of all payroll checks for all program s. PayrollT ax Fund - To account for the disbursem ent of state w ithholding taxes, unem ploym ent taxes, and federalem ploym enttaxes. 15

19 EVAN G ELIN E CO M M UN ITY A CTION,IN C ViIle Platte,Louisiana Com bining Statem entoffinancialposition January 3 I,1999 Payroll Tax M igrant Program Food Services Program Sum m er Child Care A SSETS Currentassets: Cash Duefrom othergovernm entalunits Totalcurrentassets 153 $17, $7,413 7,413 $ 6,657 23, $74,726 74,726 Fixed assetsatcost-lessaccum ulated depreciation of $313,113 $ $7,413 $30,063 $74,726 LIA I~II,1TIES AN D N ET ASSETS Liabilities: Cash overdraft A ccountspayable A ccrued liabilities Deferred revenue Totalliabilities $ - 14,221 14, $ - 19,209 19,209 $ - 74,579 74,579 Netassets(deficit),unrestricted 53 3,224 7, Totalliabilitiesand netassets $17,445 $7,413 $30,063 $74,726 6

20 Com m unity Head LlItEAP - Services Start I'nergy Block G rant Program A ssistance Heat Crisis CLECO Energy G rant Fixed A ssets $ 452 $ ,664 $. $ - $ 846 $ 423 $ $108, , ,346 02, ,316 $ 452 $ 161 $79,664 $ - $ 846 $ 423 $102,316 $313, $ $64,996 13, $ - $ - $ - $ 64,996 33,718 14, ,664 88,74 (356) , $ 452 $79,664 $ - $ 846 $ 423 $102,316 $

21 EV AN G ELIN E CO M M UN ITY A CTIO N,1N C V ille Platte,Louisiana Schedule of G rantrevenue Y earended January 31,1999 LIH EA P H eatcrisis CLECO energy grant M igrant Food ServicesProgram Com m odities Com m unity ServicesB lock G rant Headstart Sunm lerchild care $ 87, ,264 13,502 16, ,400 71, ,287 1,103, ,583 $1,920,744

22 IN TERN AL CO NTRO L,CO M PLIAN CE A N D O TH ER G R A N T IN FO R M A TIO N 9

23 c ~a~l~ KC~er.CPA RussemF Chsr~ agne CPA ~~1~ R S~Bven.CPA C,W~$ Rela y,cpa Conrad O Chapman,CPA P ~ oy Coup le CPA Per~y,a.'Igele$crug~ns.CPA Mat'/T ll'=bowc~a~ CPA GeraJc}A TtwbodeR~ Jr, CPA KeIy M DcocetCPA Ke~ th J Rach~lCPA KO LDER,CHAM PA G NE,SLAVEN & RAINEY,LLC CERTIFIED PUBLIC ACCOUNTANTS REPO RT ON CO M PLIAN CE AN D ON IN TERN A L CO NTRO L OVER FIN AN CIA L REPO RTIN G BASED ON AN A UDIT OF FIN AN CIA L STA TEM EN TS PERFORM ED 1N A CCO RD AN CE W ITH G OV ERN M EN T A ud rrln G STAN D A RD S M r.g ervisi,afleur,executive D irector and M em bersof the Board of D irectors of Evangeline Com m unity A ction A gency,lne 113 EastBnOge S'~e el BreasxBnUge LA pn~ 1318) F~x(3~8) EastW addh Mat'K$~,e LA71351 Pr~ne(318)253~9252 Fax{318)253~ Da~dDqv~ S~le105 M~gan C~ty,LA Phon~ ( Fax( W Cotlon SVeel ~ e PLa~e LA 7O586 Phone~3~8)363~2792 Fa~( W Sl~ kve~ e Obe~n LA Phone1318)63~ 4737 Faxt318)63~4558 W e have audited the financial statem ents of Evangeline Com m unity Action,Inc.,(a nonprofit organization),asof and forthe5'earended January 31,1999,and have issued our reportthereou dated July 1, W e conducted ourauditin accordance w ith generally accepted auditing applicable to financial audits contained in G overnm ent A uditing Standards, G eneralof the U nited States. standards and the standards issued by the Com ptroller Com pliance A s part of obtaining reasonable assurance about w hether Evangeline Com m unity A ction, lnc.'s financialstatem ents are free of m aterialm isstatem ent,we perform ed tests of its com pliance w ith certain provisions of law s,regulations,contracts and grants,noncom pliance w ith w hich could have a direct and m aterialeffect on the determ ination of financial statem ent am ounts. How ever, providing an opinion on compliance with thoseprovisionswasnotanobjective ofouraudit,and accordingly,wedo notexpresssuch an opinion. The resultsof ourtestsdisclosed no instancesof noncom pliance thatare required to be reported underg overnm enta uditimzstandards. InternalControlO verfinancialreoortiue In planning and perform ing ouraudit,w e considered Evangeline Com m unity A ction,lnc.'s internal controloverfinancialreporting in orderto determ ine ourauditing proceduresforthe purpose of expressing ouropinion on the financialstatem ents and notto provide assurance on the internalcontroloverfinancial reporting. H ow ever,w e noted a eertain m aterinvolving the internalcontroloverfinancialreporting and its operation thatw e considerto be a reportable condition. Reportable conditions involve m atterscom ing to our attention relating to significantdeficiencies in the design oroperation of the internalcontroloverfinancial reporting that,in ourjudgment,couldadversely affectevangelinecommunity Action,loc?sability to record, process,sum m arize and report financialdata consistentw ith the assertions of m anagem ent in the financial statem ents. A reportable condition is described in the aceom panyiug schedule of findings and questioned costsasitem ,~a~RIC~ MEMBE~OF INST~rU]Eor CER~InEO PU~LLC A~CO~ *,m S SC~ E~ OvlOUISt~ Cem lned public *ccc.,~'*~,~'rs

24 A m aterialw eakness is a condition in w hich the design oroperation of one orm ore of the intern al controlcom ponents does not reduce to a relatively low leveltile risk that m isstatem ents in am ounts that w ould be m aterialin relation to the financialstatem entsbeing audited m ay occurand notbe detected w ithin a tim ely period by em ployeesin the norm alcourse of performing theirassigned functions. Ourconsideration of file internalcontroloverfinancialreporting w ould notnecessarily disclose allm attersin the internalcontrol thatm ightbe reportable conditionsand,accordiugly,w ould notnecessarily disclose allreportable conditions thatare also considered to be m aterialweaknesses. How ever,w e believe the reportable condition described above isa m aterialw eakness. Thisreport isintended solely forthe inform ation and use of the board of directors,m anagem ent,and federalaw arding agencies and pass-through entities and is not intended to be and should not be used by anyone otherthan these specified parties. K older,champrtgne,slaven & R ainey,llc Certified Public A ccountants V ille Platte,Louisiana July I,

25 c Burt~ Kc~er CPA RusseUF ch~ro~ qe.cpa ~c1~ R SJ~van.CpA C.~ s Rain y,cpa Core-sd o Ctla~ an CPA P ~roy Cou~41e,CPA pennyangel~ $cmggln$cpa Mary'[ Thlbodea~ CPA GerCd A T~bodea~ Jr.CPA Kemy M Douce~CPA Ke~ t*1j RachelCPA K O LD ER,C HA M PA G NE,SLAV EN & RA INEY,LLC CERTIFIED PUBLIC ACCOUNTANTS REPORT ON COM PLIANCE W IT trequirem ENTS APPLICABI,E TO EA CH M A JO R PRO G RA M AN D ON IN TERN A L CO N TRO L O V ER CO M PLIAN CE IN A CCO RDAN C E W ITH O M B CIRCU LA R A -133 M r.g ervislafleur,executive D ireclor and M em bersof the Board of D irectors of Evangeline Com m unity A ction A gency,inc 234 R~ Bea~egarO LefayeUe LA 705O8 ptw)ne (3}B) Fax(318) I13EastBnC}geS~eet Brea~xBridge LA Phone (318) Fex(318) EestVVadd I MarksWle LA Pho,~ ( Fax(318]25~ Davld Drive sure 105 M~gan City.LA phc~e(504) Fax(504} w Cotlon Street ViBe Plate LA pho~ (31B)36~2792 Fax( ~ W Sixth Ave~ e Obertn LA pho'-,e {318} Fax( Com pliance W e have audited the com pliance of Evangeline Com m unity A ction Agency, Inc., (a nonprofit organization)w ith the typesof com pliance requirem entsdescribed in the U.S. O ffice of M anaeem enland Budp,et(OM B) Circular A-133 Com pliance Supplem entthatare applicable to each of itsmajorfedera programsfortileyearended January 31,1999. EvangelineCommunity ActionAgency,lnc.'smajorfederal program is 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 ents& law s,regulations,contractsand grantsapplicable to each ofitsmajorfederalprogramsistileresponsibility ofevangelinecommunity Action Agency,Inc.'s m anagem ent. O urresponsibility isto express an opinion on Evangeline Com m unity A ction A gency,inc.'s com pliance based on ouraudit. W e conducted 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 United States;and O M B C irculara -133,A udits of States LocalG overnm ents and N on-profito rganizations. Those standardsand O M B CircularA -133 require thatw e plan and perform the atdit to obtain reasonable assurance about whether 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 test basis, evidence about Evangeline Com m unity Action A gency,inc.'s com pliance w ith those requirem entsand perform ing such otherprocedures as w e considered necessary in the circum stances. W e believe thatourauditprovidesa reasonable basisforouropinion. O ur auditdoes notprovide a legaldetennination on Evangeline Com m unity A ction A gency,lnc.'s com pliance w ith those requirem ents. In ouropinion,evangeline Com m unity Action A gency,inc.com plied,in allm aterialrespects,w ith tilerequirementsreferred to abovethatareapplicableto itsmajorfederalprogramsfortheyearendcd January 31,1999. W e noted a certain im m aterialinstance of noncom pliance thatw e have reported to the m anagem ent of Evangeline Com m unity A ction,inc.in a separate letterdated July 1, MEMBER OF AM ER,C~'~INS~,rtn E O~ CEm,~,EO PUBLIC ^CCOUWr~,rIS society oftc~isl~ CERTIFIE D publ$c ACCOUNTANrlS

26 InternalControlO vercom oliance The m anagem entof Evangeline Com m unity A ction A gency,inc.is responsible for establishing and m aintaining effective internalcontrolovercom pliance w ith the requirem ents of law s,regulations,contracts aud grants applicable to federal program s. In planning and perform ing our audit, we considered the Evangeline Com m unity Action Agency,lnc.'sinternalcontrolovercom pliance w ith requirem entsthatcould havea directand materialeffecton amajorfederalprogram in orderto determineourauditing proceduresfor lhe purpose of expressing our opinion on com pliance and to testand report on the internalcontrolover com pliance in accordance w ith OM B CircularA-t33. O urconsideration of the internalcontrolovercom pliance w ould notnecessarily disclose allm atersin the internalcontrolthat m ight be m aterialw eaknesses. 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 bematerialin relation to amajorfederalprogram being audited may occurand notbe detected within a timely period by em ployees in the norm alcourse of perform ing their assigned functions. W e noted no m atters involving the internalcontrolovercom pliance and itsoperation thatw e considerto be m aterialw eaknesses. This report is intended solely forthe inform ation of the Board of D irectors,m anagem ent,and federal aw arding agenciesand pass-through entitiesand isnotintended to be and should notbe used by anyone other than these specified parties. K oider,champagne,slaven & R ahley,llc Certified Public Accountants V ille Platte,Louisiana July 1,1999

27 EVAN GELIN E COM M UN ITY ACTION,INC. Villo Platte,Louisiana Schedule of ExpendituresofFederalA wards YearEnded January 31,1999 FederalGrantor/PassThrough G rantor/program Title U.S.D epartm entof A gricurure Passed through State Dept.of A griculture and ForestO'- Com m odities CFDA N um ber Federal Expenditures $ Passed through State Dept,of I'ducation,N utrition Food Service TotalD epartm entof Agriculture U.S.D epartm entofeducation Passed through State Dept.of Education,M igrant M U.S.Departm entof Heahh and Hum an Services: )irectprogram - Headstart N/A 052,93 Passed through State D ept.of F~m ploym entand Training - Community ServicesBlock G rant N 0035,99N Passed through State D ept.of SocialServices- LlttEA P\tteatCrisis Passed through State Dept.of SocialServices-Headstart Sum m erchild Care TotalD epartm entof H ealth and H um an Services $1,847,779

28 EV A N G ELIN E CO M M UN ITY A CTION,IN C V ille Plate,Louisiana N otesto Schedule of Expendituresof FederalA w ards Y earended January 31,1999 The accom panying schedule of expenditures of federal aw ards includes the federal grant activity of Evangeline Com m unity A ction A gency, Inc.and is presented on the accrual basis of accounting. The inform ation in this schedule is presented in accordance w ith the requirem ents of O M B C ircular A -133, "A udits of States, Local G overnm ents and N on-profit O rganizations." Therefore,som e am ountspresented in thisschedule m ay differfrom am ountspresented in,orused in the preparation of,the basic financialstatem ents. (2) Headstart In accordance w ith term s of the grant,the organization has expended m atching contributions totaling $275,668 during the yearended January 31,1999. (3) Commodities N onm onetary assistance isreported in the schedule atthe fairm arketvalue of/he com m odities received and disbursed,which am ounted to $67,485 forthe fiscalyearending January 31,1999. At January 31,1999,the agency had no inventory of com m oditiesrem aining. 25

29 EVAN GELIN E COM M UN ITY ACTION AG ENCY,IN C V ille Platte,Louisiana ScheduleofFindingsandQuestioned Costs Y earended January 31,1999 Part I. Sum m arv ofa uditor'sresults A n unqualified opinion w asissued on the financialstatem ents. A reportable condition in internalcontrolw asdisclosed by the auditof the financialstatem ents. The reportable condition w asconsidered to be a m aterialw eakness. There were no instances of noncom pliauce reported w hich were m aterialto the financial statem ents,required to be reported in accordance w ith G overnm enta uditing Standards. No reportableconditionsininternalcontrolovermajorprogramsweredisclosed by theauditof the financialstatem ents. An unqualified opinion wasissued on compliance forthemajorprograms. The auditdisclosed no findingsrelating to a majorprogram required to be reported under Section 510(a)of OM B CircularA-133. The majorprogram wasthe U.S.Departmentof Health and Human Resources Headstart Program,CFD A N o The dollarthreshold used to distinguish betw een Type A and Type B program s,asdescribed in Section 520(b)ofCircularA-133was$300,000. The auditee did notqualify asa low -risk auditee undersection 530 of C irculara PartI1. Findin~as w hich are required to be reoorted in accordance w ith t,enerallv accented G overnm enta A uditing Standards A. Com pliance Findings- There w ere no com pliance findings to be reported in accordance w ith generally accepted G overnm entala uditing Standards: B. InternalControlFindings InadeQuate Seereaation of A ccounting,functions Finding D ue to the sm all num ber of adm inistrative personnel,the Evangeline Com m unity Action A gency, Inc. does not have adequate segregation of functionsw ithin the accounting system. 26

30 EV AN G ELIN E CO M M UN ITY A CTION AG EN CY,1N C V ille Plate,Louisiana Schedule of Findingsand Questioned Costs Y earended January 31,1999 Findinesand auestioned costsforfederalaw ardsw hich include auditfindinesasdefined in Seetio 510(a]of C irculara -133 There are no findingsthatare required to be reported underthe above guidance

31 er~

32 EV AN G ELIN E CO M M UN ITY A CTION A G EN CY,IN C V ille Platte,Louisiana Corrective A ction Plan Y earended January 31,1999 Schedtfle of Findinesand O uestioned Costs-Part1I.Section B,Finding,99-1 Based upon the cost-benefit of additional personnel, it m ay not be feasible to achieve com plete segregation of accounting functions. M anagem entletter The follow ing procedureswillbe im plem ented ) A listing willbemaintained ofalchildren who meetthedisability guidelines A llproperdocum entation regarding the disability w illbe m aintained in the child'sfile