!!:i"! PO INTE CO U PEE CO M M U N ITY AD VAN CEM EN T,IN C N EW RO AD S,LO U ISIANA N UAL FIN AN CIAL REPO RT FO R TH E YEAR EN D ED M ARCH 31,2002

Transcription

1 !!:i"! PO INTE CO U PEE CO M M U N ITY AD VAN CEM EN T,IN C N EW RO AD S,LO U ISIANA AN N UAL FIN AN CIAL REPO RT FO R TH E YEAR EN D ED M ARCH 31,2002 Underprovisions ofstate law,thisreportisa public docum ent.a copy ofthe reporlhas been subm itted to the entity and other~ppm ',:,rk~te public ofhci~ds.the reportis available forpublic insvec!ion ~tthe Baton Rouge ofice ofthe t.e<. ~i~,k:tive Auditorand,w here appropriate,atthe ofice ofthe parish clerk ofcourl Release Date ~ 02~

2 PO IN TE CO U PEE CO M M U N ITY ADVAN CEM EN T,IN C N EW RO AD S,LO U ISIANA (225) Clinton H.Flint

3 TABLE O F CO N TEN TS Pa~e IndependentAuditor's Report Basic FinancialStatem ents: Com bined Statem entof FinancialPosition Com bined Statem entof Activities Com bined Statem entof Cash Flow s N otes to tlae FinancialStatem ents - The Entity Sum m ary of SignificantAccounting Policies - Basis of Presentation Basisof Accounting Use of Estim ates Fund Accounting Revenue Recognition D onated Services and Facilities Property and Equipm ent Incom e Tax Status Cash G rantfundsreceivable O perating Lease C om m itm ents Com pensated Absences Contingencies AdditionalInform ation - U nrestricted Funds - Statem entof FinancialPosition Statem entof Activity Perm anently Restricted Funds- Statem entof FinancialPositions Statem entof Activity -Budgetto Actual-}lead StartProgram Statem entof Activity -Child and AdultFood SchoolLunches Statem entof Activity -ltom e Energy Assistance Statem entof Activity -Em ergency Food and Shelter Program Statem entof Activity -Com m unity Services Block G rant Statem entofactivity -Em ergency Food Assistance Program Statem entof Activity -M edicaid Schedule of Per D iem and O ther Com pensation Paid to M em bersof the Board of D irectors

4 TABLE O F CO N TEN TS IndependentAuditor's Reporton C om pliance and on InternalC ontrolo ver Finan cial Reporting Based on an Auditof Finan cial Statem ents Perf orm ed in Accordance w ith Governm entaudtttng Standards IndependentAuditor's Reporton Com pliance w ith Requirem ents Applicable to Each M ajorprogram and InternalControlOverComplian ce in Accordan ce with OM B Circular A-133 Schedule of Expenditu res of FederalAw ards Schedule of Findingsan d Q uestioned Costs

5 C ERTIFIED PU BLIC ACC O U N TAN T (A ProfessionalCorporation) Practice Lim ited to Governm entalaccounting,auditing and FinancialReporting Phone Ofice 7663ANCHOR DR/V/a VIRNl'RF~kS,LA70783aI120 M ember AMERICAN IN$]]~'Lrl'E OI~Cp/d LOUISIANA SOCII.;TY OF C pjt.~ GOVEV.NM~rCr FIt.tANC E OFI'ICE~S &~SOCIA~ION IN D EPEN D EN T AU D ITO R'S REPO RT To the Board of D irectors of Pointe Coupee Com m unity Advancem ent,inc. lhave audited the accom panying statem entof financialposition of PO IN TE CO UPEE CO M M U- NITY ADVANCEM ENT,INC.,(a NonproftOrganization),asofM arch 31,2002,and the related statem ents of activities and cash flow s for tile yearthen ended. These financialstatem ents are th e responsibility of Pointe Coupee Com m unity Advancem ent,lnc.'s m anagem ent. M y responsibility isto expressan opinion on these financialstatem ents based on m y audit. 1conducted m y auditin accordance w ith auditing standards generally accepted in the United States of Am erica and the standards applicable to financialaudits contained in Governm ent A uditing Standards,issued by th e Com ptroller G eneralof the U nited States;and w ith provisions of Louisiana Revised Statute 24:513 and the provisions of the Louisiana G overnm ental AuditGuide,published jointly by the Society oflouisiana Certified Public Accountantsand th e Louisiana Legislative Auditor. Those standards require that 1 plan and perform the audit to obtain reasonable assurance about w hether the financial statem ents are fi'ee of m aterial m isstatem ent. An auditincludes exam ining,on a testbasis,evidence supporting the am ounts and disclosures in the financialstatem ents. An audit also includes assessing the accounting principles used and significant estim ates m ade by m anagem ent, as w ell as evaluating the overallfinancialstatem entpresentation. Ibelieve thatm y auditprovides a reasonable basisfor m y opinion. In m y opinion,the financialstatem ents referred to above presentfairly,in allm aterialrespects, the financialposition of Pointe Coupee Com m unity Advancem ent,inc.as of M arch 31,2002, and the changes in its net assets and cash flow s for the year then ended in conform ity w ith accounting principles generally accepted in the U nited States of Am erica. In accordance w ith G overnm ent A uditing Standards, 1 have also issued nay report dated Septem ber26,2002,on nay consideration ofpointe Coupee Com m unity Advancem ent,lnc.'s internalcontroloverfinancialreporting and nw tests of its com pliance w ith certain provisions of law s,regulations,contracts and grants. Thatreportis an integralpartof an auditperform ed in accordance w ith Governm entauditing Standards and should be read in conjunction w ith this reportin considering the results of m y audit.

6 M y auditw as perform ed for the purpose of form ing an opinion on tile basic financialstatem ents of Pointe Coupee Com m unity Advancem ent,inc.taken as a w hole. The accom panying schedule of expenditures of federalaw ards is presented for purposes of additionalanalysis as required by U.S.Office ofm anagem entand BudgetCircularA-133,Audits of States,Local Governm ents,and Non-l~rofttOrganizations',and aclditioualinform ation listed in the table of contents are nota required partof the basic financialstatem ents. Such inform ation has been subjected to the auditing proceduresapplied in the auditofthe basic financialstatem entsand, in m y opinion,is fairly stated,in allm aterialrespects,in relation to the basic financialstatem ents taken as a w hole. Septem bcr 26,2002

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8 BASIC FINAN CIAL STATEM EN TS

9 PO INTE CO U PEE CO M M U N ITY ADVAN CEM EN T,IN C CO M BIN ED STATEM EN T O F FINAN CIAL PO SITIO N M ARC H 31,2002 ASSETS Cash Grantsand reim bursem entsreceivable Unrestricted Restrletcd Total 3,142 $ 62,939 55~347 $ 66,081, 55~347 TO TAL ASSETS $ 3~142 $ 118,286 $ 121,428 LIABILITIES Accounts payable Accrued salariespayable Accrued payrollliabilitiesand deductions TotalLiabilities N ET ASSETS Unrestricted - Dndesignated l'erm anently restricted 3,142 67,388 67,388 35,345 35,345 14,222 14~ ~ ,955 3,142 1,331 1~331 TotalN eta ssets 3,142 1,331 4,473 TO TAL LIABILITIES AN D N ET ASSETS 3,142 $ 118,286 $ 121,428 The accom panying notes are an integralpartof these statem ents

10 PO IN TE CO U PEE C O M M U N ITY AD VAN CEM EN T,IN C. CO M BIN ED STATEM ENT O F ACTI?VITIES AN D CHAN G ES IN N ET ASSETS YEAR EN D ED M ARCH 31,2002 REVBNUES G rants and reim bursem ents G rantee contributions Interestincom e Localgovernm entalcontributions M iscellaneous Unrestricted Restricted Total 3,086 2,279 1,257, , ,575 $ 1,257, , ,661 2,279 TotalRevenues 5,365 1, ,487,378 EXPENSES Program Services- Ilead Start C hild & Adultt~ood -SchoolLunch Program 110m e Energy Assistance Em ergency Food and Shelter Com m unity Services Block G rant Em ergency Food Assistance Program M edicaid 104,503 70, ,135 35,951 98,293 3,121 3,469 1,104,503 70, ,135 35,951 98,293 3,121 3,469 TotalProgram Services M anagem entand general 5,807 1,502,841 1,502, TotalExpenses 5, CHANG E IN NET ASSBT8 (442) (20,828) (21,270) N etassetsatbeginning of Year 3,584 22,159 25,743 NET ASSETS AT END O F YEAR $ 3,142 $ 1,331 $ 4,473 The accom pany notes are an ifitegralpartof these statem ents

11 PO IN TE CO U PEE CO M M UN ITY ADVAN CEM ENT,IN C CO M BIN ED STATEM EN T O F CASH FLO W S YEAR EN D ED M ARCH 31,2002 CASH FLO W S FRO M O PERATING ACTIVITIES (Decrease)in netassets Adjustmentsto reconcile (decrease)in netassetsto netcash provided by operating activities: (Increase)decrease in: Receivables Increase (decrease)in: Accountspayable Accrued salariespayable Accrued payrollliabilities and decluctions N etcash Provided by O perating Activities NetIncrease in Cas h C ash ate.eginning of Year (21,270) (11,512) 24,186 35,345 14,199 40,948 40, $ 66,081 The accom panying notesare an integralpartof these statem ents.

12 PO INTE CO U PEE CO M M UN ITY ADVAN CEM EN T,IN C N O TES TO TH E FINAN CIAL STATEM ENTS N O TE 1 -TH E ENTITY Pointe ('oupec Com m unity Advancem ent,inc.("tile Agency ")wasorganized in 1965 asa non-profitcorporation undertile NonprofitCorporation Law oflouisiana,section 201(7)ofTitle 12 ofthe I.ouisiana Revised Statutes. The corporation isorganized on a non-stock basis. Itfunctions asa com m unity action agency w hose purpose isto inlprove the quality of life for low incom e,needy persons throughout tile area w ith em phasis on providing educational, nutritional,heahh and social assistance to underprivileged children and nutritionaland energy assistance to low incom e persons. N O TE 2 -sum M ARY O F SIG N IFICANT ACCO UN TIN G PO LICIES Basisof Presentation Financialstatem entprescntatlon followsthc r~'com mcndationsofthe FinancialAccounting StandardsBoard in its Statem entoffinancialaccounting Standards (SFAS) No.117,"FinancialStatem ents ofnot-for-profitorganizations." Under SFAS No.117,the Pointe Coupee Com n'm nity Advancem ent,inc.is required to reportinform ation regarding its fitlatlcial position and activities according to three classes of net assets: unrestricted net assets, tem porarily restricted netassets,and perm auentlyrestricted netassets. Basisof Accounting The financialstatcfnerlts of tile Pointe Coupee Com m unity Advancem ent,inc.have been prepared on tile accrual basisofaccounting and accordingly reflectallsignificantreceivables,payables,and other liabilities. The preparation offinancialstatcm cntsin conform ity w ith accounting principlesgcncrally accepted iu tile United Statcs ofam crica requires m anagem entto m ake estim ates antiassum ptions thataffectcertain reported am ounts and disclosures. Accordingly,actualresultscould differfrom those estim ates. The accountsofpointe Coupec Com m unity Advancem ent,inc.are m aintained in accordance w ith the principles of fund aeeotm ting. U nder fund accounting,resources for various purposes are classified for accounting anti reporting purposes into funds established according to their nature antipurpose. Separate accounts art"m aterained for each fund;how ever,in the accom panying financialstatem ents,funds thathave sim ilarcharacteristics have been com bined into fund groups. In accordance w ith SFAS No.117,fund balances are classified on the Statem entoffitlanclalposition asunrestricted,tem porarily restricted,or perm anently restricted netassets based on the absence or existence and type of donor-im posed restrictions. The various funds m aintained by l'ninte Coupcc Com m tm ity Advancem ent,inc.arc asfollow s: LocalAdm tntstration --the generaloperating ftm d used to accountforallfinancialresourcesovcrw hich " the Board of ~MYec"tors has ~.~iscre"tionary con"tyo$ar~ is ~ased ~o ca~t'y o~"t~.~-~ c,peraticm s ofthe '~.gency i~-~ accordance w ith its bylaw s. llead Start--a federally funded program whose objectives are to provide com prehensive educational, nutritional,health and socialservices to cconom ically disadvantaged preschoolchildren and their fam ilies and to involve parents in activities w ith theirchildren so thattile children w illattain ovcrallsocialcon'tpetence. Parents also participate in various decision m aking processesrelated to operation ofthe program. Child ~ AdultFood -SchoolLunch Program -- this program provides financialreim bursem entto the llead Startprografn for schoolhm chcs.

13 PO INTE CO U PEE CO M M U N ITY ADVAN CEM EN T,IN C N O TES TO TH E FINAN CIAL STATEM ENTS Home Energy Assistance - the objective ofthisprogram isto assistlow.incom e personsin paying for energy and reduce the im pactofrising energy costson eligible participants. Em ergency Food and Shelter Program - distribution of food com m odities donated by tile federal governnlentto those person m eeting certain incom e and other eligibility criteria. Com m unity Services Block Grant- a federally-funded grantim plem ented to provide com m unityh>ased program sthatassistin am eliorating tile cause.,;and consequencesofpoverty. Em ergency Food Assistance Program - the objective ofthisprogram isto provide food to needy people on an em ergency basis. M edicaid..the objective ofthisprogram isto assistpeople complete the m edicaid applicationswhich are sentto the state for further processing. G rantsreceived from federaland state sourcesare recorded asperm anently restricted support As required by grantregulations,llead StartGrantees m ustprovide,in the form ofcash orin-kind contributions, an am ountequalto 20% of tile costof tile program. In accordance w ith SFAS No.116,"Accounting for Contributions Received and Contributions M ade" the value ofdonated services and facilities included in the financial statenteltts is reported asboth a revenue and expense. The value ofdonated services is based on tile ntinim unl w age rate in effectatthe tim e,the value of donated facilities isbased on currentm arketrates forthe area,less rent paid. Prior to O ctober 1,2000,tile Em ergency Food Assistance Program obtained com m odities from tile U.S.D epartm cntofagriculture through tile l.ouisiana D epartm entof Agricuhure & Forestry. D uring thattim e,tile costof com m odities w ere provided by USDA and recorded in accordance w ith SFAS No.116. Effective O ctober 1,2000, tile Greater Baton l',onge Food Bank becam e the distribution center for allcom m odities throughouta tw elve parish outreach area. No estim ated costsw ere obtained from the G reaterbaton Rouge Food Bank forcom m odities received and I~ointe Coupee Com m unity Advancem ent,inc.w as tilable to provide an estim ate;consequendy, tile COStofdonated item s are notrecorded in the statem entofactivities afterseptem ber30,2000. The Pointe Coupee Com m unity Advancem ent,inc.adopted a policy established by the U.S.Departm entofllealth and llum an Serv ices in tile operation ofthe llead Startprogram. Allacquisitions of property and equipm entin excessof$5,000 and allexpendituresforrepairs,m aintenance,renewals,and betterm entsthatm aterially prolong the usefullivesofassetsare capitalized.atm arch 31,2002,Pointe Coupee Com m unity Advancem ent,inc.had no un-depreciated assetsthatm atched thispolicy. Incom e Tax Status Pointe Coupce Com m unity Advancem ent,inc.is cxem ptfrom federalincom e taxes under InternalRevenue Code Section 501(c)(4)and lxm isianarevenue and Taxation Code.

14 PO IN TE CO UPEE CO M M UN ITY ADVAN CEM ENT,IN C N O TES TO TH E FINAN CIAL STATEM EN TS N O TE 3 -CASH Regulations require thatdeposits ofthe Agency be insured by Federaldepository insurance orcollateralizcd by securitiesheld in the nam e ofthe Agency by the trustdepartm entofa bank thatdoesnothold the collateralized deposits.as ofm arch 31,2002,tile statusofdeposited fundsand collateralized balancesare asfollow s: Dem and accounts Federaldepositinsurance coverage Pledged securities Unsecured 72,255 72, N O TE 4 -G RANT FUN D S RECEIVABLE AtM arch 31,2002,the Agency isdue to receive fundsasfollow s I_I.S.l)eparlm entof Iteahh & ltum an Servicesltead Start l.uuisiaoa D epartm entof Education - Child & AdultFood SchoolLunches Louisiana D epartm entof Labor- Com m unity Serv icesblock G rant Total 35,365 16,854 3,148 55,347 N O TE 5 -O PERATIN G LEASE CO M M ITM EN TS Pointe Coupee Com m unity Advancem ent,inc.isengaged in two leasing arrangem ents An annuallease foradm inistrative officeslocated at337 Napoleon Street,New l',oads,ia w ith the Poiute Coupee Parish SchoolBoard. The annualleases covered tile period July 1 to June 30 at per n'tofth. Rentexpense isrecorded forthe currentyearin the am oux/tof$5, A lease w ith Livonia Lodge # 220 for ofi ce space located at 128 Poydras Streetw hich houses the Ilead Startoffices. O n June 18,1999,tile lease w as extended for another three yearterm w ith m onthly paym entsof$ untildecem ber31,2000,atw hich tim e the m onthly rentalincreased to $ per m onth forthe rem ainderofthe extension. Rentexpense isrecorded forthe currentyearin the am ountof $ An annuallease w ith St.M ary Baptist Church for a H ead Startcenter in lnnis,la. The annuallease covered the period Septem ber 1,2001 untilm ay 15,2002 at$ per m onth. Rentexpense is recorded fortile currentyearin the am ountof$5,100. Future m inim um lease paym entsover the lease term are as follow s FiscalYear End 3/31/2003 Annual Paym ent

15 PO INTE CO U PEE CO M M UN ITY ADVAN CEM EN T,IN C N O TES TO TH E FIN AN CIAL STATEM ENTS N O TE 6 -CO M PEN SATED AB SEN CES I'ointe Coupcc Com m unity Advancem ent,inc.has adopted the follow ing policy on com pensated absences: O nly full-tim e,full.yearem ployeesare eligible forannualleave. Em ployees earn annualleave aftera 90 clay probationary evaluation isconducted and recom m endation w as m ade for retention. 1. Em ployeesw ith lessthan 5 yearsofservice earn 12 daysperyear. 2. Em ployeesw ith m ore than 5 yearsofservice earn 18 daysperyear. Allaccum ulated leave m ustbe used on orbefbrc D ecem ber31 ofeach year. Paym entforunused annual leave tim e shallbe m ade upon the discharge,resignation,rem ovalofan em ployce due to reduction in force,retirem ent,or death ofan em ployee notto exceed 18 days. Annualleave days arc credited at the beginning of the year and dccreased as tim e is taken;consequently,no provision forunused vacation tim e is accrued in the financialstatcm ents. N O TE 7 "CO N TIN G EN CIES "Yhe Agency receivesfederaland State Grantsforspecific purposesthatarc subjectto review and auditby Federal antistate agencies, such auditscould resultin a requestforreim bursem entby the l.'ederaland State forexpendituresdisallow ed underthe term sand conditionsofthe ~tppropriate agency. 11

16 AD D ITIO NAL IN FO RM ATIO N 12

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18 CU RREN T U N RESTRICTED FU N D S The "LocalAdm inistration Fund" is the generaloperating fund of Pointe Coupce Com m unity Advancem ent,inc. It is used to account for allfinancialresources over w hich the Board of D irectors has discretionary controland is used to carry out the operations of the agency in accordance w ith its bylaw s. 14

19 PO IN TE CO U PEE CO M M UN ITY AD VAN CEM ENT,IN C. STATEM EN T O F FINAN CIAL PO SITIO N -UN RESTRICTED FUN M ARCH 31,2002 D S ASSETS Cash TO TAL ASSETS Adm inistration 3, N F.T ASSETS l_lndesignated TO TAL N ET AS SETS ,142

20 PO INTE CO U PEE CO M M UN ITY ADVAN CEM ENT,IN C. STATEM ENT O F ACTIVITIES -UN RESTRICTED FUN D S YFMd~ EN D ED M ARCH 31,2002 REVEN UES Ix)calgovernm entalcontributions M iscellaneous TotalRevenues ID~PEN SES Travel Rent M aintcnancc and supplies TotalExpenses CHAN G E IN NET ASSETS N etassetsatl~eginfling ofyear NET ASSETS AT END O F YEAR Local Adm inistration 3, ,365 1,032 4, (442) 3~584 $ 3,142 16

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22 PERM AN EN TLY RESTRICTED FU N D S Perm anently restricted funds are expendable only for operating purposes specified by the grantor. Restricteclfunds of the Agency are as follow s: H ead Start Child and AclultFood Program -SchoolLunch Program ltom e Energy Assistance Em ergency Food and Shelter Program Com m unity Services Block G rant Em ergency Food Assistance Program M edicaid 18

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24

25 PO IN TE C O U PEE CO M M UN ITY AD VAN CEM EN T,IN C STATEM ENT O F ACTIVICTIES -BU D G ET TO ACTUAL H EAD START PRO G RAM YEAR EN D ED M ARCH 31,2002 REVENUES G rantrevenues Granteescontribution Interestincom e Budget 982, Actual 883, , Variance Favorable/ ~ OJnfavorable) (98,819) (24,838) 75 TotalReventles 1.228, (123,582) F'.XPENSES D irectcosts- Personnel Fringe benefits Travel Supplies C ontractual Facilities/construction O ther 519, ,524 40,070 94,380 3,632 55, , ,340 55,988 93, ~953 29,679 31,184 (15,918) 450 1,037 55,000 (2,427) TotalD irectcosts TotalF.xpenses CHANGE IN NET ASSETS 982, , , ~228, ,005 24, ,

26 PO INTE CO U PEE CO M M UN ITY ADVAN CEM EN T,IN C STATEM EN T O F ACTIVITIES CH ILD AN D AD ULT FO O D SCH O O L LUN CH ES YEAR EN D ED M ARCH 31,2002 REVENUE U.S.D epartm entof Agriculture Totall{evenl.les EXPENSES Food 70,436 70,436 70,369 70,369 CItAN GE IN NET ASSETS 67 22

27 PO INTE CO U PEE CO M M UN ITY'AD VAN CEM ENT,IN C STATEM ENT O F ACTIVITIES H O M E EN ERG Y ASSISTAN CE PRO G RAM YEARS 2001 AN D 2002 REVENUES G rantor reim bursen~ents Jan Ol to M ar 31 $ Prozram Year 2001 Apr 1 to Dee 31 $ 122,551 Total $ 169,115 Program Year 2002 Jan 01 to M ar 31 62,748 TotalRevenues 46, , , EXPENSES Salaries and benefits Travel Supplies N otices Energy assistance _._ 43,310 8, t678 9, ,988 3, ,278 TotalExpenses ~ ~621 63,160 CHANGE IN NET ASSETS $ 1,918 $ (1,424) $ 494 (412) 23

28 PO IN TE CO UPEE CO M M UN ITY AD VAN CEM EN T,IN C. STATEM EN T O F ACTIVITIES EM ERG EN CY FO O D AN D SH ELTER PRO G RAM FO R PRO G RAM YEARS 2001 AN D 2002 O ct01 to ldar 31 REVENUES Em ergency Food and Shelter Board $ 15,889 Program Year 2001 Apr 01 to Sep 30 Total Program Year2002 O ct01 to M ar 31 $ 15,889 $ 18,848 TotalRevenues ~889 18,848 EXPEN SES Supplies M iscellaneous Com m odities distributed 1, , TotalExpenses CHAN GE IN N ET ASSETS $ $ (17,103) $ (1,228)

29 PO IN TE CO U PEE CO M M UN ITY ADVAN CEM ENT,IN C. STATEM ENT O F ACTIVITIES CO M M UN ITY SERVICES BLO CK G RAN T PRO G RAM YEARS 2001 AN D 2002 Jan ol to M ar 31 REVENUE Office ofcom m unity Services $ 19~500 Prod.ram Year 2001 Apr 01 to Dee 31 71,449 Total Program Year 2002 Jan 01 to M ar31 $ 90~949 $ 24,534 TotalRevenues 19,500 71,449 90,949 24,534 EXPENSES Salariesand benefits Traveland conferences Audit InsuraNce Supplies Telephone Rent Adm inistrative 17, , , ,159 2, ~136 80, , ,261 3,113 1,375 1, TotalF,xpenses 18,370 72,946 91, CHAN GE IN N ET ASSETS 25

30 PO INTE CO U PEE CO M M UN ITY AD VAN CEM ENT,IN C STATEM ENT O F ACTIVITIES EM ERG EN CY FO O D ASSISTAN CE PRO G RAM FO R PRO G RAM 5~ ARS 2001 AN D 2002 REVENUE G rantsorreim borsem ents Localgrants O ct01 to ldar 31 $ 1,500 Apr O1 to Sep Total Program Year 2002 O ct01 to M ar 31 1,500 1,850 $ 1,725 TotalRevenues 1,500 1,850 3~350 1,725 EXPENSES Salariesand benefits Professionalfees Travel M aintenance and supplies F.ent Adm inistrative , ,016 2OO TotalExpenses 2,055 1~283 3,338 1,838 CHANGE IN NET ASSETS ~. (555) $ 567 $_. 26

31 PO IN TE CO U PEE CO M M UN ITY ADVAN CEM EN T, IN C. STATEM ENT O F ACTIVITIES M ED ICAID YEAR END ED M ARCH 31,2002 REVENUE G rantsorreim bursem ents TotalRevenues EXPENSES Salariesand benefits Insurance Supplies TotalExpenses CHANG E IN N ET ASSETS ,108 2, ~469 (361) 27

32 PO IN TE CO U PEE CO M MIUN ITYAD VAN CEM EN T,IN C. SCH ED U LE O F PER D IEM AN D O TH ER CO M PEN SATIO N PAID TO M EM BERS O F TH E BOARD O F D IRECTO RS YEAR EN D ED M ARCH 31,2002 Roland J.Roberts Juliette W illiam s Sylvester M uckelroy Irm a R.Sm ith 1)onald Fuselier Linda C hristophe EleanorSeibert Jolm Olinde,Sr. Annie M ae Jackson Yolanda Slaughter W illie W ilson,jr. RobertM.Lee Betty W illiam s M ilton Gaines,Jr. Sam Adolphe 0

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34 O TH ER REPO RTS REQ UIRED BY The follow ing pages contain a reporton com pliance w ith law s and regulations and on internal controlover financialreporting as required by G overnm enta uditing Standards, issued by the Com ptroller G eneral of the United States. This report is based solely on the audit of the financial statem ents and includes, w here appropriate, any reportable conditions and/or m aterialm isstatem ents in internalcontrolor com pliance m attersthatw ould be m aterialto the presented financialstatem ents.

35 C ERTIFIED PU BLIC A CCO U N TAN T (A professionalcorporation) practice Lim ited to Governm ental/u~counting,auditing and FinancialReporting rhone OFI'ICE {225) FAX (~25)6~&3669 E-malgfdcpa~ h~.~ m Ofice 7663 ANCIIOR DRIVE VE NI"I~ SS,IA M em ber AM ERICAN INS1TILrrE OF CPA~ LOUISIAI~ SOCll~ly OF CP~~ GOW ~ ME~r FINANCE IN D EPEN D EN T AU D ITO R'S REPO RT O N C O M PLIAN C E A N D O N IN TERNAL CO N TRO L O VER FINAN CIAL RE PO RTIN G BASED O N AN AU D IT O F FINAN C IAL STATEM EN TS PERFO RM ED IN AC CO RDAN CE W ITH G O VERNM EN T A UD ITIN G STAND ARD S To the Board of D irectors of Polntc Coupee Com m unity Advancem ent,inc. l have audited the financial statem ents of PO INTE CO U PEE CO M /VIUN ITY AD VAN CEM ENT, INC.(a nonprofitorganization)asofand forthe yearended M arch 31,2002,and iaave issued m y report thereon dated Septem ber 26, I conducted m y audit in accordance w ith auditing standards generally accepted in the U nited States of Am erica and the standards applicable to financial audits contained in G overnm ent A uditing Standards, issued by th e Com ptroller G eneralof the U nited States. As partof obtaining reasonable assurance aboutw hether Pointe Coupee Com m unity Advancem ent,]nc.'s financial statem ents are free of m aterial m isstatem ent, I perform ed tests of its com pliance w ith certain provisions oflaw s,regulations,contracts and grants,noncom pliance w ith w hich could have a directand m aterialeffecton the determ ination of financialstatem ent am ounts. H ow ever,providing an opinion on com pliance w ith those provisions w as not an objective ofnay auditand,accordingly,ido notexpresssuch an opinion. The resultsofm y tests disclosed no instances of noncom pliance thatare required to be reported under G overnm enta uditing Standards. In planning and perform ing m y audit,1considered I)ointe Coupee Com m unity Advancem ent, lnc.'s internalcontrolover financialreporting in order to determ ine m y auditing procedures for the puq)ose of expressing m y opinion on the financial statem ents and not to provide assurance on the internal control over financial reporting. M y consideration of the internal control over financial reporting w ould not necessarily disclose all m atters in th e internal controlthat m ightbe reportable conditions and,accordingly,w ould not necessarily disclose all reportable conditions that are also considered to be m aterial w eaknesses. A m aterial 31

36 w eakness is a condition in w hich the design or operation of one or m ore of the internal controlcom ponents does not reduce to a relatively low levelthe risk that m isstatem ents in am ounts that w ould be m aterial in relation to thc financial statem ents being audited m ay occur and not be detected w ithin a tim ely period by em ployees in the norm al course of perform ing their assigned functions. I noted no m atters involving thc internalcontrol over financialreporting and its operation thaticonsider to be m aterialw eakncsses. This report is intended solely for the inforanation of the board of directors, m anagem ent, federalaw arding agencies and pass-through entities,and the Legislative Auditor for the State of l.ouisiana and is not intended to be and should not be used by anyone other than these specified parties. IIow ever this reportis a m atter of public record and its distribution is not lim ited. Septem ber 26,

37 CERTIFIED PU BLIC ACCO UN TANT (A ProfessionalCorporation) Practice Lim ited to Governm entalaccounting,auditing and FinancialReporting Phone OFFICE(225)93"/-9735 FAX (ZZS)638~3669 E-malgfOcpa(~ ah~.~ m Ofice 7663 ANClIOa DPaV~ VEN'I~I~SS,LA M ember AMERICAN [N S1"11"lYl'l~OF CPAs LOUISIANA $OCI~1"/OF Cp3-, GOVERNMENT FINANCE OFFICERS ASSOCIATION IN D EPEN D EN T AU D ITO R'S REPO RT O N CO M PLIAN CE W ITH RE QUIRE M ENTS APPLICABLE TO EACH M AJOR PRO GRAM AND IN TERNAL CO N TRO L O VER CO M PLIAN CE IN ACCO RDAN CE WI TH O M B CIRCU LAR A-133 To the Board of D irectors of Pointe Coupee Com m unity Advancem ent,inc Ihave audited tile com pliance ofpointe COUPEE COM M UNITY ADVANCEM ENT,INC.(a nonprofitorganization)with the typesofcom pliance requirem entsdescribed in the U.S.Off/ce of Managem entand Budget(OMB) CircularA.133 Compliance Supplem entth atarc applicable to each ofits m ajor federalprogram s for the year ended M arch 31,2002. Pointe Coupee Com m unity Advancem ent,inc.'s m ajor federalprogram s are identified in the sum m ary of auditor's results section of th e accom panying schedule of findings and questioned costs. Com pliance w ith the requirem ents of law s, regulations, contracts and grants applicable to each ofitsm ajor federalprogram sisthe responsibility of Pointe Coupee Com m unity Advancem ent, Inc.'s m anagem ent. M y responsibility is to express an opinion on Pointe Coupee Com m unity Advancem ent,lnc.'s com pliance based on m y audit. 1conducted m y auditof com pliance in accordance w ith auditing standardsgenerally accepted in the U nited States of Am erica; the standards applicable to financial audits contained in G overnnw ntauditing Standards,issued by the Com ptroller G eneralof the U nited States;and OMB CircularA-133,Auditsof States,LocalGovernments,and Non-ProfitOrganizations.. Those standards and O M B Circular A-133 require thatiplan and perform the auditto obtain reasonable assurance about w hether noncom pliance w ith the types of com pliance requirem entsreferred to above thatcould have a directand m aterialeffecton a m ajorfederalprogram occurred. An auditincludes exam ining,on a testbasis,evidence aboutpointe Coupee Com m unity Advancem ent, lnc.'s com pliance w ith those requirem ents and perform ing such other procedures as 1 considered necessar y in the circum stances. I believe that nay audit provides a reasonable basis for nay opinion. M y auditdoes notprovide a legaldeterm ination on Pointe C oupee C om m unity Advancem ent,inc.'scom pliance w ith those requirem ents. 33

38 In m y opinion,pointe Coupee Com m unity Advancem ent,inc.com plied,in all m aterialrespects,w ith tile requirem entsreferred to above thatare applicable to each ofitsm ajorfederal program sfor the ),ear ended M arch 31,2002. Internal ControlO ver Com oltance The m anagem entof Pointe Coupee Com m unity Advancem ent,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 m y audit,1 considered Pointe Coupee Com m unity Advancem ent,inc.'s internalcontrolover com pliance w ith requirem entsthatcould have a directand m aterialefecton a m ajorfederal program in order to determ ine m y auditing procedures for the purpose of expressing m y opinion on com pliance and to test and report on internal control over com pliance in accordance w ith O M B Circular A-133. M y consideration of the internalcontrol over com pliance w ould not necessarily disclose all m atters in the internalcontrolthat m ight be m aterialw eaknesses. A m aterialw eakness is a condition in w hich the design or operation ofone or m ore of the internalcontrolcom ponents does notreduce to a relatively low levelthe risk that noncom pliance w ith applicable requirem entsoflaw s,regulations,contracts and grantsthatw ould be m aterialin relation to a m ajor federal program being audited m ay occur and not be detected w ithin a tim ely period by em ployees in the norm alcourse of perform ing their assigned functions. 1 noted no m atters involving the internalcontrolover com pliance and its operation thaticonsider to be m aterial w eaknesses. This report is intended solely for the inform ation of the board of directors, m anagcm cnt, federalagencies and pass-through entities,and the Legislative Auditor for the State of Louisiana and is notintended to be and should notbe used by anyone other than these specified parties, ltow ever this reportis a m atter of public record,and its distribution is notlim ited. Septem ber 26,2002

39 PO INTE CO UPEE CO M M UN ITY AD VAN CEM ENT,INC. SCH EDULE O F EXPEN DH 'URES O F FEDERAL AW ARD S YEAR EN DED M ARCH 31,2002 FederalGra ntor/ Pass-Through Gra ntor/ Program N am e CFDA Num ber Agency or Pass-through Num ber Federal Disbursem ents/ Expenditures U.S.Departmentof Health & Human Services D irectprogram Ileadstart I.A D epartm entof Labor Com m unity Services Block G rant LA D epartm entofsocialservices flora e Efnergy Assistance * xN / ,672 98, U.S.Departmentof Agriculture I.A D epartm entofeducation Em ergency Food Assistance Program Clfild & AdultC are Food Program -SchoolLunches N/A N/A 3, FederalEm ergency M anagem entagency D irectprogram Em ergency Food & Shelter Pro gram TotalFederalAw ards N/A * M ajorprogram s N OTE A - SIGNIPICANTACCO UN TIN G POLICII?S NOTES TO SCHEDULE OF EXPENDITURES O F FEDERAL AW ARDS The accom panying schedule of expendituresoffederalaw ardsis a sum m ary of tile activity oftile Agency's federal aw ard program s presented on tile accrualbasis of accounting in accordance w ith accounting principles generally accepted in the United States ofam erica. In accordance w ith term s of the grant,the Agency hasdocum ented m atching in-kind contributionstotaling $220,831during tile yearended M arch 31,

40 PO IN TE C O U PEE CO M M UN ITY AD VAN CEM EN T,IN C. SCHEDULE O F FINDINGS AND QUESTIONED CO STS YEAR EN D ED M ARCH 31,2002 A. SU M M ARY O F AU D IT RESU LTS The auditor's reportexpresses a unqualifed opinion on the financialstatem ents of Pointe Coupee Com m unity Advancem ent,inc. 2 In the Reporton Com pliance and on InternalControlO ver FinancialReporting Based on an Audit of FinancialStatem ents l'erform ed in Accordance w ith Govem in enta uditing Standards no reportable conditions w ere disclosed during the auditof the basic financialstatem ents, N o instances of noncom pliance m aterial to the basic financial statem ents of Pointe C oupee Com m unity Advancem ent,inc.w ere disclosed during tile audit. In tile Reporton Com pliance with Requirem entsapplicable to Each M ajorprogram and InternalControlO ver C om pliance in Accordance w ith O M B C ircular A- 133 no reportable conditionsw ere disclosed during the auditof tile m ajorfederalaw ard program s The auditor's reporton com pliance for the m ajor federalaw ard program s for Pointe C oupee C om m unity A dvancem ent,inc.expresses an unqualified opinion. Auditfindings relative to the m ajor federalaward program sfor Pointe Coupee Com m unity Advancem ent,inc.are reported in PartC.of this Schedule. "file program stested asm ajorprogram sincluded a. H ead Start--CFDA No The threshold for distinguishing TypesA and B program sw as $300,000 9 Pointe Coupee Com m unity Advancem ent,inc.w as determ ined notto be a low - risk auditee. B. FIN D IN G S ~ FINAN CIAL STATEM ENTS AU D IT N O N E C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AW ARD PROGRAM S AUDIT 36