ReleaseDate_zo_Z(_~J.E OIOCT -9 I~TIO:II. [.E~ SI ;" i;~rtor. ST.M A R T IN C O U N C IL O N A G IN G,IN C. Breaux Bridge,Louisiana RLX;C!

Transcription

1 RLX;C!VF[) [.E~ SI ;" i;~rtor OIOCT -9 I~TIO:II ST.M A R T IN C O U N C IL O N A G IN G,IN C. Breaux Bridge,Louisiana FinancialR eport Y ear E nded June 30,2001 Ui'K!crprovisions ofstp,te law,this rof~,l:i',!~,:!)]:g docum ent.a copy ofthe repor~:h~: :' ::;',; :Jto the entity and otherapp:opriate [: ::..;lx~ reportis ~w ail~ble forpublk::,n:~:r. :,:,: i;~;!:()n Rouge office ofthe Legislative /~.u':~i,:orend,.,'.~ere appropriate,atthe ofice ofti~c p:~ri:.;l~ck,lk cfcoult, ReleaseDate_zo_Z(_~J.E

2 TABLE O F CO N TEN TS.. Page INI)EPEN I)I~N T A U D ITO R'S REPORT G EN EP.AI.PU RPO SE FIN A N CIA L STATEM EN TS (('OM BINEI)STATEM ENTS -OVERVIEW ) Com bined Balance Sheet-A llfund TypesAnd A ccountgroups C om bined Statem ento f R evenues,expenditures,a nd Changes In Fund Balances-A llg overn m entalfund Types Com bined Statem ento f Revenues,Expenditures,A nd Changes In Fund Balances-Budget(GAAP Basis)And Actual-All G overnm entalfund Types N otesq'o FinancialStatem ents SIJI~PI.EM EN TA R Y 1N FO I/M A TIO N SCIIF,I)U I.ES O F ]N D 1V IDU A L FU ND S Statem ento f Program Revenues,Expenditures,A nd Changes In Fund Balance -G eneralfund Com bining Schedule O f Revenues,Expenditures,A nd C hangcsin Fund B alanecs-a llspecialr evenue Funds Statem ento f ExpendituresAnd O therfinancing U ses - Budget(GAAP Basis)And Actual-ContractsAnd Grants Provided Through The Louisiana G overnor's OfficeOfElderly Affairs(GOEA) INTERN A l,con TRO L A N D COM PLIAN CE IndependentA uditor'sr eporto n Com pliance A nd O n lnternal ControlO verfinancialreporting Based O n A n A udito f G eneralpurpose FinancialStatem entsperform ed In A ccordance W ith G overnm enta uditin~ Standards O TIIER SU PPI~IgM EN 'I'A RY INFORM ATION Schedule O f ChangesIn G eneralfixed A ssets Schedule O f D isbursem entsto Board M em bers Sum m ary Schedule O f PriorY earfindings ScheduleOfFindingsAnd Questioned Costs M anagcm enl'scorrective A ction Plan ForCurrentY earfindings

3 D arnall,sikes kk~fl'edel'ick~ IN D EPEN D EN T A UD ITOR'S REPORrF ugenc}l ])allball.cpa.rclhcd 199O I.l.l~tly Sikcs,(:I'A,('VA ])iiiii) P ]irdclltk.c }'A (llil),ltxlli,; I)illllilll,C }'A ].;ll~ciit- II IialnM I. II1.(:I'A }'ilu]ili) ]~ihm.('i'a SlcpllilnJe N] []ig~illboth~lnl.(?pa 1~~},11 P A lnl,llo. (TI'A.lelM~ilcl S Zick'ler.(:I'A C hlls A M illet.(:i'a Sl~],}lell}t.I)istlllel.M IIA > ('I.A ~ICVCll(J ~l(ios~,c I'A K alhlccl1-1 i)t,llllll+(~]'a ];rich (; Ii.ew cl..11.c ]'A l~lich (; ]ocgvcl,iil (~}'A "]alncla "1.Ii,nth y"t':pa (:~li[i 1( ]onl(.lol.(':i.a }{lc~tl[il) Sicily.('I'A IIildilS.(iuidiy,(TI'A Julic "1 q cm pict,c I'A B illb llla.c l~llk,('pa ~t(illl('[ii ] lvclne,('i'a laulen I VcH otl.u I'A M iclicllt II.IlOlltqlo.C PA "l'he Board of D irectors St.M artin Councilon A ging,lnc Breaux Bridge,Louisiana W e have audited the accom panying general purpose financial statem ents of the St. M artin Councilon A ging,inc.,as of and for the year ended June 30,2001,as listed in the table of eonteuls. These general lm rpose financial statem ents are the responsibility of the Council's m anagem ent. O ur responsibility is to express an opinion on these general purpose financial statem entsbased on ourandit. W e conducted ourauditin accordance w ith auditing standardsgenerally accepted in the U nited States of A m erica, and the standards applicable to financial audits contained in G overn m ent _A uditil~ Stan _ dards,issued by the Com ptroller G eneralof the U nited States. Those standards require thatw e plan mad perform the auditto obtain reasonable assurance aboutwhcther the general purpose financial statem ents are free of m aterial m isstatem ent. An audit includes exam ining, on a test basis, evidence supporting the am ounts and disclosures in the general purpose financialstatem ents. An auditalso includesassessing the accounting principlesused and significant estim ates m ade by m anagem ent,as w ell as evaluating the overallgeneralpurpose financialsta tem entpresentation. W e believe thatourauditprovides a reasonable basis for our 125 R lic B caulegald 1ofl),etle,IA 705( ~ ;.I[itlleJJ V~llllC I;UlllCc.] A IB rosheu,a vvlluc SllilC 3(11 IM otgt,n C it}.ia 7O (,2 ~,4 4O4 I'crc b.legl~l A l,l,eville.ia T05J0 3~7.s, In our opinion,the generalpurpose financialstatem ents referred to above presentfairly,in all m aterialrespects,the financialposition of the St.M artin Councilon A ging,inc.as of June 30, 2001,and the results of its operations for the year then ended,in conform ity w ith generally accepted accounting principles. In accordance w ith G ovcim ne!)j _ A ucljfing Sta!~tar.ds,we have also issued our report dated July 30,2001,on ourconsideration of the St.M artin Councilon A ging,luc.'s internalcontrol over financial reporting and our tests of its com pliance w ith certain provisions of law s, regulations,contractsand grants. M,,t,~ro r: Am elicanlnsliluicof tertifled PtlblicA~tt.untanls N~.cic{)ell~,,isi,na (~rijfled I,~lb]JcA tcotlrll~rlls

4 A Corporation of Ccrtificd Public A ccountants 1,afayctte,1.onisiana July 30,2001

5 G ENER AL PU R PO SE FINA N CIAL STA TEM EN T S (COM BINEI)STATEM ENTS -OVERVIEW )

6 ST.M A RTIN CO U N CIl.ON A G IN G,IN C (?om bined B alance Sheet-A llfund TypesA nd A ccountg roups June 30,2001 A SSETS ('ash D ue from otherfunds A ccountsreceivable l'repaid cxpendilures R cstrietcd assets: (;ash Fixed assets Am ount1o be provided forretirem ent of generallong-term debt Tolalassels G overnm ental Fund Types G eneral Special Revenue 8,222 $ $ 3,547 5,477 3,547 3,329 1,518 A ccountgroups G eneral G eneral Fixed I.ong-lcrm A ssets 1)cbi 123,774 $ $ 5,349 (M enaorandunl Only) 8,222 3,547 9,024 3,329 1, ,774 _ 5,349 $ ~; 3~5.47 $ ~$~ _~ 3A 9 ~ 154,7~3 I.IABII.ITIES AND FUND EQUITY 1.iabilities: D ue to otherfunds A ccrued payrolland relaled benefitspayable l.ong-lerm debtaceunm lated unpaid vacation 176 $ 3,547 $ $ $ 3, N 3_49 _5_,3_49 Totalliabilities _!2_6 _ ~ 547 ~ 349 _ 9~072 Fund Equity: Investm entiu fixed assets 123,Z7_4_!23,724 Fund balances- U nreserved -undesignated R eserved forprepaid expenditures Reserved forpaym entof utility bills Totalftm d balances 17,070 3,329 _ 1,518 _ 2!,917 17,070 3, !,9.12 Totalfund equity 21, _ 145,6271 Totalliabilitiesand fund equity ~ 93 ~ 3~fi54"1 $ 123~774 _$. 5,34_9 $ 1.5.4,763 l'he accom panying notes are an intcgralpat-tof,hisstatcm cnt 4

7 ST.M ARTIN COU N CIL ON A G IN G,IN C Com bined Statem ento f Revenues,Expcnditures,A nd Changes11Fund Balances-A llg overnm entalfund Types Y earended June 30,2001 Revenues: Intcrgovernm enlal PIograln Localand m iscellaneous Tolalrevcoues $ 73,553 _ 44~~Q1 ll8~454 Special R evenue $ 235,508 34,421 _ 27,4_ ,4~ Total (M emoraudom Only) 309,061 34,421 72,381. A15~863 F,xpcnditures: Cun ent- SM aries Fringe Travel O perating sclvices O perating supplies Othercosts Totalexpenditures ,496 1, ,06 _ 7 255,129 36,124 31,180 65,422 19,526 _ 2,8~ 410,2 _ ,129 36,664 31,223 68,918 21,102 _ 1%302 _ 426.3~ 8 Excess(deficiency)ofrevenuesover expenditures 102,387 (11~ (10,475) Olherfinancing som ces(uses) O perating tlansfersin O perating Itansfersout _ A~ 6~) 243,127 _ ~ 130,265) 243,127 (24%127) l'olalotherfinancing sources(uses) (11L 862) 112,862 Excess(deficiency)ofrevenuesand other soorcesoverexpeldiluresaud otheloses (10,475) (10,475) Fund balances,beginning of year _ ,392 Fu ld balances,end of ycar ~ 2j.,9~ l'he accom panying notesare an integralpro1 of thisstatem ent 5

8 ST.M ARTIN COU NCIl.ON A G IN G,INC C om bined Statem ento f Revenues E~pcndiluresAnd ChangesIn Fund Balances-Budget(GAAP Basis)And Actual-A lgovernmentalfund Types Y earended June 30,2001 Revenues: ]ntergoveranleatal l~ioglam Localand m iscellaneous Totalrevenues taudgcted GeneralFund Actual V ariance - Favorable Ct~ fa_v o_~ab ~ 3 $ 72,496 $ 73,553 $ 1,057 $ 234,560 33,691 45~2 _ 39 _ 44,9_0_! _. _ 2L ~A SpecialRevenue Funds V ariance - Favorable ['.a dge_led Actual funfavo]able) ,993 ~xpendilures: Cur/enl- Salades Fringe Tlavel O perating services O peraling supplies O tbe~costs Totalexpenditures 257, , ,525 3,488 3,496 (8) 64,618 1,491 1,576 (85) 19,528 - _ 1 _ 1 _,264 10, ,387 -!6,88~ _ L6~067 - _8J (i _ 41~35_1.':i. 255,129 36,124 31,180 65,422 19,526 _ 2,8~ 0 410,2.7! 1, ,345 (804) 2 _ 492 ~.244 Excess(deficiency) of reveuocs overexpenditmes 1~ 852 _ 1~ 387 1~535 (118~099) ~.62) 5237 Olhelfinancing sources(uses) Operating tlansfersin O perating transfersout 246, ,127 ~ 1[118~ (112~862) 5~23y (l_~ &9) (~ 2_65) (3,531). (13~_6) Totalotherfinanciltg sources(uses): (1180 ~O99J (!12~ 5~2_ ~862 (~2373 Excess(deficiency)of revelljesand other SOUlees over expendituresand otheruses (17,247) (10,475) 6,772 Fund balances,beginning ofyear 3 _ _ 32,32?2 T he accom panying notesare an integralpartof thisstatem ent 6

9 ST.M ARTIN COUN CIl,ON A G ING,IN C N otes to FinancialStatem ents NOTE 1 SUM M ARY OF SIGN IFICANT ACCOUN TING PO LICIES FinancialR eporting Entity A ct456 of 1964 authorized the charierof voluntary councilson aging for the w elfare of the aging people in theirrespective parishes. Chartersare issued by the Louisiana Secretary of State upon approvalby the G overnor's O ffice of Elderly A ffairs. Each council is a nonprofit,quasi-public corporation w hich m ustcom ply w ith policiesand regulationsestablished by the G overn or'so ffice of Elderly A ffairs,the state agency w hich providesthe Councilw ith m ostof its revenue. The Councilalso receivesrevenue from otherfederal,state,and local goverm nentagencies,w hich m ay im pose som e additionalrequirem ents. Theprimary function offlaest.m artin Councilon Aging,Inc.(Council)isto improvethe quality of life for the parish's elderly and to provide services to the elderly as w ell as coordinate and m onitorthe services of otherlocalagencies serving the aging people of the parish. Som e of the servicesprovided by the Councilinclude congregate and hom e-delivered m eals, nutritional education, inform ation and assistance services, legal assistance, hom em aker services, w ellness, m aterial aid, outreach, operating senior centers, and transportation. A Board of D irectors,consisting of 13 voluntary m em bers w ho serve threeyearterm s,governsthe Council. The Councilis nota com ponentunitof anotherprim ary governm entnor does ithave any com ponentunits,w hich arc related to it. Therefore,the Councilhaspresented its financial statem ents as a separate special-purpose governm ent. This reportincludes allfunds and accountgroups which arc controlled by or dependen!on the St.M artin Councilon Aging,Inc. Controlby ordependence on the Councilwasdetermined on the basisof budgetadoption,appointm entof governing body,and othergeneraloversight responsibility. esentation of Statem ents In A pril 1984, the Financial A ccounting Foundation established the G ovennnental Accounting StandardsBoard (GASB)to promulgate generally accepted accounting principles and reporting standards w ith respect to activities and transactions of state and local governm ental entities. In N ovember of 1984, the GASB issued a codification of Governm ental A ccounting and Financial Reporting Standards. This codification and subsequent G A SB pronouncem ents are recognized as generally accepted accounting principlesforstate and localgovernm ents. The accom panying financialstatem entsconform to genera lly accepted accounting principles for state and localgovermnents. These statem ents have also incolporated any applicable requirem ents setforlh by A udits of State and LocalG overnm entalu nits the industry audit guide issued by the A m erican Institute of Certified Public A ccountants; Subsection V I - A nnual Financial Reporting,accounting m anual for G overnor's O ffice of Elderly A ffairs contractors;and the Louisiana G overn m entalauditguide

10 ST.M ARTIN COU N CIL ON A G ING,INC N otesto FinancialStatem ents NOTE 1 SUM M AP.Y OF SIGNIlqCANT ACCOUNTING POLICIES (CONTINUEI)) ]"und Accounting The Counciluses fim dsand accountgroupsto reportits financialposition and the resultsof its operations. Fund accounting is designed to dem onstrate legal com pliance and to aid financialm anagem entby segregating transactionsrelating to certain functionsoractivities. The accounts of the Councilare organized on the basisof fundsand accountgroups,each of w hich is considered a separate accounting entity. The operations of each fire d are accounted forw ith a separate setof self-balancing accountsthatcom prise its assets,liabilities,equity, revenues,and expenditures. Resourcesare allocaled to and accounted forin individualfunds based upon the pro pose for w hich they arc to be spentand the m eans by w hich spending activities are controlled. The various funds are grouped,in the financialstatem ents in this report,into two generic fund typesand two broad fund categories(accountgroups). G overnm eutalfund Types G overn m entalfunds are used to accountfor allorm ostof the Council's generalactivities, including the collection and disbursem ent of specific or legally restricted m onies, the acquisition of fixed assets,and the servicing of generalloug-term debt. The govern m ental funds and the program s com prising them as presented in the financial statem ents are described asfollow s: G c~eralftm d The G eneralfund isthe generaloperating fund of the Council. Itisused to accountfor allfinancialresourcesexceptthose required to be accounted forin anotherfund. These discretionary fundsare accounted fc~rand reported aceording to lhc source (federal,state, orlocal)from which they arederived. In addition,theservicing ofgenerallong-lema debtisaccounted forin the G eneralfund because unrestricted resourcesare used to pay for the liabilities incun-ed by this fund and there are no legal m andates to use a debt service ftlnd. The follow ing program scom prise the Council'sGeneralI"und O therj.oeal Revenues,such as,(1)donalionsfrom thegeneralpublic,(2)income from various fundraisers,(3)program service revenue from renting M edic Alertunits,and (4) interestincom e eanled on idle fundswhich have been invested,have been recorded in the "otherlocal"program of the G eneralfund.

11 ST.M A ll.tin CO U N CIL ON A G IN G,IN C N otesto FinancialStatem ents NOTE 1 SUM M ARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) _Govern mentalfund Types(continued) GeneralFund (continued) OtherJ~oeal(continued) Expenses incurred,which are notchargeable to specific program s,are recorded as "other local" program expenditures. A lso, expenses incurred to produce related program sezwiee fees and fundraising incom e are charged as "other local" program expenditures. "O therlocal"fundsare also used astransfers to specialrevenue fim ds to supplem entthose program s. In addition,fixed assetadditions are generally paid w ith "otherlocal"funds. P _CQ A (Act735) PCOA (Act735)fundsare appropriated forthegovernor'soffice ofelderly Affairs by the l,ouisiana Legislature forrem ittance to the Councilon A ging. The C ouncil m ay use the "A ct 735" funds at its discretion provided the program is benefitin g people w ho are atleast60 yearsold. M _ edicaid This is a program w here the Councilcom pletes enrollm entapplications for people wanting to apply form edicaid services. The Councilispaid $14 perapplication it completesby thedepartmentofttealth and llospitals(i)itll).any fundsremaining afterapplying directcoststo operate thisprogram are available fordiscretionary use by m anagem ent. The Councilalso actsasa coordinatorof services forpeople who are hom e bound and in need of servicessim ilarto those provided in a nursing hom e. Ratherthan have the person sentto a nursing hom e,the C ouncilcoordinatesnecessary servicesand is paid a fee by M edicaid forperform ing the personalcare attendantfonction. SM *ecialrevenue Funds SpecialRevenue Funds are used to accountforthe proceedsof specific revclm e sources (otherthan specialassessmentsand majorcapitalprojects)thatarelegally restricted to expendituresforspecified purposes.

12 ST.M ARTIN CO UN CIL ON A G IN G,1NC N otesto FinancialStatem ents NO'I'I'~1 SUM M M ~.Y OF SIGNIFICANT ACCOUNTING POI,1CIES (CONTINUED) GovernmentalFund Types(continued) S pecial. Rev _ clm e E _ unds(continued) The follow ing are the funds thatcom prise the Council'sSpecialRevenue Funds Title III-B SupA)ortive ServicesFund Title III-B fim dsare provided by the U nited StatesD epartm entof tleallh and ttum an Servicesthrough the Louisiana G overn or'so ffice of Elderly A ffairs,w hich "passesthrough"the fundsto the Council. ]'his program isused to accountforfundsw hich are to provide a variety of socialservices;such as,inform ation and assistance,access services,in-hom e services,com m unity services,legal assistance,and outreach for people age 60 and older. ' _l:i!!e Ill.C_-lCongregate M ealsfund Title II1 C-1 funds are provided by the United States D epmlm cnt of ltealth and tlum an Services thr ough the Louisiana G overnor's O ffice of Elderly A fairs,w hich "passes-fllrough" the funds to the Council. This fund is used to accountfor funds which are used to provide nutritional,congregate m eals to the elderly in strategically located centers. D uring the fiscalyear July 1,2000 to June 30,2001,the Council served about10,586 congregate m eals. Title IllC-2 tom e D elivered M ealsfund Title 111 C-2 funds are provided by the U nited States D epartm ent of llealth and ]Ium an Services through the Louisiana G overnor's O ffice of Elderly A ffairs,which "passes through" the fundsto the Council. This fund is used to accountfor funds, which are used to provide nutritional,hom e delivered m eals to hom ebound older persons. D uring the fiscalyear July 1,2000 to June 30,2001 the Councilstowed about46,515 hom e delivered m eals. Title III-F Fund ]'he Title lli-f Fund is used to accountfor funds used for disease prevention and health promotion activitiesorservices,such as;(1)equipmentand materials(scales to weigh people,educationalmaterials,and exerciseequipment),(2)homeiujuw control, (3) medication management, (4) mental health, and (5) nutrition (assessment/screening,counseling,and education).thelaw directsthestateagency adm inistering tifsprogram to "give priority to areasof tim state w hich arc m edically underserved and in which Ibere arc a large num berof olderindividualsw ho have the greatest econom ic and socialneed." Title III-F funds are provided by the U.S. D epartnaentof H ealth and tlm nan Scrviccsthrough the Louisiana G overnor'so ffice of Elderly A ffairs,w hich in turn "passes-through"the fundsto the Council.

13 ST.M ARTIN CO U N CIL ON A G IN G,IN C N otesto FinancialStatem ents NOTE 1 SUM M ARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Govern mentalfund Types(continued) ṢpecialRevenueFunds(eonlinued) U nited W ay _ F _ u _ nd This fund reports assistance received from the com m unity's regularu nited Appeals A ctivity.the funds are received upon application to the U nited W ay A gency and are subjectto monitoring by thatagency. SeniorCenterFund The Senior Center Fund is used to account forthe adm inistration of SeniorCenter program funds appropriated by the Louisiana Legislature to the G overnor'o ffice of Elderly A ffairs, w hich in turn "passes-through" the funds to the Council. This program provides com m unity service centers at which older persons receive supportive services and participate in activities which foster lheir independence, enhance theirdignity,and encourage theirinvolvem entin and w ith the com m unity. The Counciloperatestw o seniorcenters in St.M artin Parish,Louisiana. Tille I11B -O m budsm an Fund The O m budsm an Fund is used to accountfor funds used to provide people age 60 and older residing in long-term care facilities a representative to ensure that such residents'rightsare upheld,to resolve com plaintsby residentsw ith the m anagem ent of the long-term care facility, and to prom ote quality care at the facility. O m budsm an funds are provided by the U nited States D epartm ent of Ilealth and ltum an Servicesthr ough the Louisiana Governor'O ffice of Elderly A ffairs,which in turn "passes-through"the fundsto the Council. The Supplem entalseniorcenterfund is used to accountfor fundsprovided by the Louisiana Legislature to the G overn or's O ffice of Elderly A ffairs,w hich "passesthrough" the funds to the Council. The funds are used to supplem ent the olher program s operated by the Council. q'i~e X IX Fund The Title X IX Fund isused to accountforfundswhich are used to provide paym ents formedicalservicesprovided to (1)cash assistancerecipients,(2)membersofcertain m andatory and m edically needed people w ho qualify under program guidelines. Title X IX Fundsare provided by the U nited StatesD epartm entof H ealth and ltum an Servicesasdirectreim bursem entforcostsincurred by the Council.

14 ST.M A RTJN CO U N CIL O N A GIN G,IN C N otesto FinancialStatem ents NOTE 1 SUM M ARY OF SIGNIFICANT ACCOUNTING POL1C1ES (CONTINUED) GovermnentalFund Types(continued) SpecialP,evenucFunds(continued) Section 5311 Section 5311 funds for localtransportation are funds providcd by the U nited Stales D epartm entof Transportation through the 1,ouisiana D epartm entof Transpoilation and D evelopm ent,w hich in turn passesthese funds to the Councilvia the St.M artin Parish Policy Jury. Funds earned mad received by the Councilarc based on aelual operating costs of providing transportation services to rural residents w ithin the parish. "l~ansl~!'l~tion -Olh_eLr The Transportation -O ther Fund is used to accountfor funds earned and received from providing transportation services other than transportation services for the elderly. A n account group is a financial reporting device designed to provide accountability fot certain assets and liabilities thatare notrecorded in the fundsbecause they do notdirectly affectnetexpendable available financialresources. The following tw o accountgroups arc not"fnnds." G eneralfixed A ssets ]'hefixed assets(capitaloutlays)used in governmentalfund typeopcrationsofthest. M artin Councilon Aging,Inc.areaccounted for(capitalized)in thegeneralfixcd Assets A ccountgroup and are recorded as expendituresin the govern m entalfund typesw hen purchased. G enerallong-term D ebt Long-term liabililiesexpected to be financed flora govern m entalfundsarc accounted for in the G enerallong-term D ebta ccountg roup. The G enerall,ong-tcrm D ebta ccount G roup show s only the m easurem ent of financial position and is not involved w ith m easurem ent of results of operations, l'rincipal and interest paym ents on longqerm liabilities(bank loansand capitalleaseobligations)areaccounted forin thegeneralfund because the Council intends to use m rrestrictcd resources 1o pay tbem and no legal m andate exists to establish a debtservice fund.

15 ST.M ARTIN COU N C IL ON A G IN G,INC N otesto FinancialStatem ents NOTE 1 SUM M ARY OF SIGNIFICANT ACCOUNTING I'OLICIES (CONT1NUEI)) B asis of A ccounting The accounting and financial reporting treatm ent applied to a fund is determ ined by its m easurem entfocus. The governm ental funds,including the G eneral and SpecialRevenne Funds,are accounted forusing a currentfinaneialresourcesm easurem entfocus. W ith this m easurem entfocus,only currentassets and currentliabilities are generally included on the balance sheet. Operating statementsofthese fundspresentincreases (revenuesand other financing sources)and decreases(expendituresandotherfinancing uses)in netcurrentassets. G ovcm m cntal funds arc m aintained on thc m odified accrualbasis of accounting w hcrcin revenuesare recognized in the accounting period in which they becom e susceptible to accru al (i.e.,when they are "measurable and available"). "M easurable"meansthe amountofthe transaction can be determ ined and "available" m eans collectible w ithin the currentpcriod o~ soon enough thereafter to pay liabilities of the currentperiod. The Councilconsiders all revenuesavailable if they arc collected w ithin 60 daysafteryear-end. l';xpeod itures are recognized in the aeeounting period in which the liability is incurred, if m easurable,exceptforprincipaland intereston long-term debtwhich are recorded w hen duc. 3)~nsfersand lu~.erfundloans A dvancesbetw een funds,w hich are notexpected to be repaid,are accounted forastransfers. In those cases w here repaym ent is expected,the advances are classified as due froln other fundsor due to other fundson /he balance sheet. Shorl-term interfund loansare classified as intcrfund receivablesand payables. t_ ~u d gc~,c '9!icy The Councilfollow sthese procedures in establishing the budgetary data reflected in these financialstatem ents. The G overn or'so ffice of Elderly A ffairs"g O EA "notifiesthe Councileach yearasto the funding levelsforeach program 'sgrantaw ard. The Councilm ay also obtain grants from agencies other than G O EA and the Counc considersthe potentialrevenuesto be earned underthose grants. Projectionsare made of revenues from othersourcesbased on pasttrendsand data available to form expectationsof future revenues. The Executive D irectorpreparesa proposed budgetbased on the expected fuudiug levels and then subm itsthe budgetto the Board of D irectors forapproval. The Board of D irectors review s and adopts the budgetbefore M ay 31 of the currentyear forthe nextyear.

16 ST.M A RTIN CO U N CIL O N A G IN G,INC N otesto FinancialStatem ents NOTE 1 SUM M ARY OF SIGNIFICANT ACCOUNTING POI,1CIES (CONTINUED)!~udgetPolio,(continued) The adopted budgetisforwarded to the Cajun Area Agency on Aging,Inc.forfinal approval. Allbudgetary appropriationslapseattheend ofeach fiscalyear(june30).occasionally, thecouncilwilreceive aspecialprojectgrant,which may operateon aperiod different fiom the Council's norm al fiscalyear,and therefore,have a specified dale where the budgetary appropriationsw illlapse. The budget is prepared on the m odified accrual basis, consistent w ith the basis of accounting,forcom parability of budgeted and actualrevenuesand expenditures. Budgeted am ouuts included in the accom panying financialstatem entsinclude the original adopted budgetam ountsand allsubsequcntam endm ents. A ctualam ouuts are com pared to budgeted am ountsperiodically during the fiscalyearas a m anagem entcontroldevice. The Councilm ay transfer funds between line item s as often asrequired butm ustobtain prior approvalfrom tile G overu or's O ffice of Elderly A ffairs for funds received under grants fi'om this state agency. A s a partof this grant aw ard,g O EA requiresthe Councilto am end itsbudgetin caseswhere actualcostsfora particular cost category exceeded tile budgeted am ount by m ore than ten percent. O therwise,the excess costscould be labeled asunauthorized expenditures. Expenditurescannotlegally exceed appropriationsattbe individualfund level The Councilisnotrequired by state orlocallaw to prepare a budgetforevery program or activity it conducts. A ccordingly, som e G eneral Fund activities arc not budgeted, particularly if they are deem ed to be im m aterialby m anagem ent. TotalColum nson Com bined Statem ents-o verview Totalcolum nson the com bined statem ents-overview are captioned "M em orandum Only"to indicate thatthey are presented only lo help w ith financialanalysis.d ata in these colum nsdo not present financial position,results of operations, or changes in financial position 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. l/ixed Assets,10cluding Prgj~ rty Lca sc_d ~!ad~r _ CapjLaḷ1.& ases A ssetswhich costatleast$1,000 and which have an estim ated usefullife of greaterthan one yearare capitalized as fixed assets. A llfixed assetsare slated athistoricalcostorestim ated historicalcost,if actualhistoricalcostisnotavailable.d onated fixed assetsare stated attheir estim ated fair m arket value on the date donated. N o depreciation has been provided on generalfixed assets.

17 ST.M A RTIN COU N CIl.O N A G IN G,IN C N otesto FinancialStatem ents NOTE 1 SUM M ARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fixed A ssets~ Including P!opcrt~. Leased undercapitali~eases(continued) Capitalleases are recorded atthe inception of the lease as capitaloutlay expenditures and otherfinancing sources in governm entalfund typesand asassets and liabilities ilthe G eneral Fixed A ssetand G enerallong-term D ebtaccountgroups,respectively,atthe presentvalue of the m ininm m lease paym ents,using the interestrates stated in the leases. Lease paym ents are recorded as expenditures on the due date;the portion of the paym ents applicable to principal,determ ined by using interestratesim plicitin the lease,is reported as a reduction of the capitalized lease obligation in the G enerallong-term D ebtaccountgroup. Com pensated A The Council's policy allow s fulllim e em ployees to carry forward 48 days of unused sick leave and 10 days of annualleave beyond the fiscalyear end. Full-tim e em ployeesearn 1 1/2 days of sick leave and 1 1/2 daysof annualleave perm onth. An em ployee m ay be paid for 10 days of unused annualleave and no days of unused sick leave upon separation. The liability for accum ulated annualleave has been recorded in the G eneral Long-Term D ebt accountgroup. Related zj'a!'ly ]Yansaetions The Councilhas a receivable due from an em ployee in the am ountof $7,312 atjune 30, The receivable isto be collected in 19 m onthly installm entsof $75 during the period July 31,2001 through January 1,2003,then 14 m onthly installm ents of $400 during the period February 1,2003 through M arch 31,2004 and one final payment of $287 due April30,2004.Thisreceivable isnotrecorded in the accom panying financialstatem ents. Restricted A ssets Restricted assets represent assets,which have bccn prim arily acquircd through donations whereby the donorhasplaced a restriction on how the donation can bc used by the Council (i.c.,utility assistancefunds).restricted assctsarcoffsetby acorresponding reservation of the Council'sfund balance. Reservation and D esign aai _ onz of _ I" _ und Balances The Council "reserves" portions of its fund balance that are not available for expenditure becausereso~arceshave already been expended (butnotconsumed),oralegalrestriction has been placed on certain assetsw hich m ake them only available to m eetfuture obligations. l)csignaled allocations of fire d balances result w hen the Council's m anagem entintends to expend cerlain resourcesin a designatcd m anuer.

18 ST.M ARTIN COUN CIL ON A G IN G,IN C N otesto FinancialStatem ents NOTE 1 SUM M ARY OF SIGNIFICANT ACCOUNTING POLICIES (CON31NUEI)) l'r _ epaid F,x pcnd{tpygs The Councilhaselected notto expense am ounts paid forfuture servicesuntilthose services are consum ed lo com ply w ith the costreim bursem ent terms of its grantagreem ents. The fund balances in the governm ental fund types have been reserved for any prepaid expenditures recorded in these funds to reflect the am ount of fund balance not currently available forexpenditure. U se of Estim ates The preparation of financial statem ents in conform ity w ith generally accepted accounting principles requires m anagem ent to m ake estim ates and assumptions that afect certain reported am otmts and disclosures. Accordingly, actual results m ay differ from those estim ates. N OTE 2 REVEN UE RF.CO GN ITION - INTERGOV ERN M EN TA L,PR O GR A M SERVICE FI~ES PU BL1C SU PPORT,A N D M ISCELLAN EOU S REV EN U ES ~ 0vernmental ]ntergovernm ental revenues are recorded in governm ental fuuds as l'evcnucs il "the accounting period when they becom e susceptible to accrual,thatis,m easurable and available (modified accrualbasis), lntergovemmentalgrantsdo notallow the Councilto recoguize revenue underthe grantaw ard untilactualcostsare incurred orunitsof service arc provided. Program Service Fees l'rogram service fees are recognized w hen the Councilprovidesthe service thatentitlesthe Council to charge the recipient for tile services received. The Council encourages and receives contributions from clients to help offsetthe costs of the Title Ill-B,C-I,and (2-2 program s Public Supp ortand M iscellaneousrevenues Utility assistance fundsare provided from public donatio1~svia utility com pany program s. In addition,variousfundraisers are held during the year to obtain fundsto offsetcostsof general operationsand senioractivities.the tim ing and am ountsof the receiptsof public supportand m iscellaneousrevenues are difficultto predict;therefore,they are notsusceptible to accrual and are recorded asrevenue in the period received.

19 ST.M ARTIN CO UN CIl.ON A G IN G,IN C. N otesto FinancialStatem ents N OTI~,3 CA SH AN D INTEREST-BEA RIN G I)EPO S1TS The Councilm aintains a consolidated bank accountto depositthe m oney itcollects and to pay its bills.the consolidated bank accountisavailable foruse by allfim ds.the purpose of this consolidated accountis to reduce adm inistration costs and facilitate cash m anagem ent. The consolidated accountalso allow sthose fundsw ith available cash balancesto coverany negative cash balances in othcr funds atyear-end. A t June 30,2001,the balance of the Council'sconsolidated bank accountw as$9,740. l)cpositbalances(bank balances)atjune 30,2001,totaled $28,842 and are fuly secured by federaldeposilory insurance. G A SB Statem ent3 categorizesthe creditrisk of these deposits asc ategolt Ibecause they arc fully insured. N O TI';4 CIIA N G ES IN G EN ERA l.fix ED A SSETS Balance July 1, 2000 A dditions D eletions Balance June 30, 2001 Furniture & fixtures V ehicles $ 47,685 $ $ 14,481 _ 90,570 $ 33,204 90,5~ 9 Totalgeneralfixed assets ~!3~2_55 $ _~d _4~481 ~ 23,~ N OTE 5 BO A RI)OF D IlCECTOR S'CO M PEN SATION The B oard of D irectorsisa voluntary board;therefore,no com pensation has been paid to any m em ber, liow ever,board m em bersare reim bursed forout-of-town travelexpensesincurred in accordance w ith the Council's regularpersonnelpolicy. N OTE 6 INCO M E TA X STATU S The Council,a non-profitcorporation,is exem ptfi'om federalincom e taxes under Section 501(c)(3)oftheInternalRevenueCodeof1986 andasan organization thatisnotaprivate foundation asdefined in Section 509(a)ofthe(;ode.Itisalso exemptfrom Louisianaincome tax.

20 ST.M ARTIN COU N CIL O N A G ING,INC N otesto FinancialStatem ents N O TE 7 CH AN G ES IN I.ON G -TERM D EBT 1.ong-lerm liabilitiesthatw illbe financed fi'om governm entalfundsare accounted forin the generaliongqerm debtgroup of accounts. The follow ing is a sunrm aly of changes m the generallong-term debtaccountgroup: Balance July 1, 2000 Principal Balance June 30, 2001 Accrued annualleave ~ 4,;7@ _ ~ 1,024 $ $~ 5~.3~9 4 A ccrued annualleave isexpected to be paid during the fiscalyear-end June 30,2001 The annualrequirem entsto anaoritize alldebtoutstanding atjune 30,2001,are asfollow s _~~_arending June $_ s~92 N O TE 8 JUI)G M ENTS,CLA IM S,AN D SIM ILA R CON TING EN CIES There is no litigation pending against the Council at June 30, Fm lherm ore,the Council's m anagem entbelievesthatany potentiallaw suitsw ould be adequately coveted by insnrancc. N OTE 9 FEI)I,;RA I.A W A RD PRO GR AM S The Councilreceives revenues fi'om various Federal and State grantprogram s,w hich are subjectto finalreview and approvalasto allowability ofexpendituresby therespective grantoragencies. Any settlem entsorexpensesarising outof a finalreview are recognized in the period in w hich agreed upon by the agency and the Council. A lso,itis m anagem ent's opinion thatany auditsby the grantoragenciesw ould notproduce disallow ed program costs and liabilities to such an extent that they w ould m aterially affect the Council's financial

21 ST.M ARTIN CO U N IL O N A G IN G,INC N otes to FJnancialStatem ents N OTF.10 ECON O M IC D EPEN DEN CY The Councilreceives the majority of its revenue fi'om funds provided through grants adm inistered by the l,ouisiana G overnor's O fi ce of Elderly A ffairs. The grantam ounts are appropriated each yearby the federaland state govern m ents. If significantbudgetcutsare m ade atthe federaland/orstate level,tile am ountof file funds the Councilreceivescould be reduced significantly and have an adverse im pacton itsoperations.m anagem entisnotaw are of any actionsthatw illadversely affectthe am ountof fundsthe Councilw illreceive in the nextfiscalyear. NO TF,11 R ISK M A N A G EM F.N T The Councilis exposed to various risks of lossrelated to torts;thefts of,dam age to,and destruction of assets;errorsand om issions;injuriesto employees;and naturaldisasters.the Councilhas purchased com m ercialinsurance to cover orreduce the risk of loss thatm ight arise should one of these incidents occur. N o settlem ents w ere m ade during the year that exceeded the Council'sinsurance coverage. N OTE 12 INTI~RFU N I)LO AN S D ue From O therfunds D ue To O therfunds G eneralfund SpecialR evenue Funds: Title IllC-I Title llic-2 Transportation -O ther Title X 1X $ 3,547 $ 3 ll 2,977 _ 556 ~ ~_ 3 5~ 347, N OTI';13 INTERFU N I)TR AN SFERS O perating transfersin and outare listed by fund for2001 FundsTransfen'ing In: Title III-B Title 111C-2 Transportation -O ther FundsTransferrin~ O ul IUle ;5,upplem enlal ~em or X IX SeniorCenter Center ection 5311 $ $ 4,158 $ 22,164 $ 8, _ ~74 ~ $ [8~748 (13,355 $ ~52~121

22 ST.M A RTIN COU NCIl.ON A G IN G,INC N otesto FinancialStatem ents NOTE 13 INTERFUNI)TRANSFERS (CONTINUED) Funds Transferring In: Title IlI-B Title 111C -2 Transportation -O ther PCO A $ 21,779 $ _ ~2 L 2~. Fund 88,829 2,254 FundsTransferrine O ut l'itle W ay C-1 Total $ 18,317 9,077 $ $ 91,0_8=3 $ 27,394 ~ 5,~ $ 164,013 17,011 62,!_03 N OTI,;14 RESERV ED FUN D BA I.AN CE The Councilreceives funding from various utility com panies for the restricted purpose of alleviating hardship conditionsrelated to the paym entof utility bills forelderly individuals. Fundsavailable atyear-end forthispurpose have been reserved accordingly. The follow ing sum m ary outlinesthe activity by fund source for the yearended June 30,2001: Balance July 1, 2000 Rcvcnoe July 1, June 30,2001 D isbursem ents July 1, June 30,2001 Balance June 30, 2001 Ihltergy 1.A Pow er & Lightltelping lland (LACOA) Enlex CentralLA.Electric Co.(LACOA) TransLA.G as Co. South LA.Electric Co $ 1,901 $ 2,089 $ 3,502 $ $ 2,763 ~ 3,592 $ 4,837 ~

23 ST.M A RTIN COU NCIL ON A G IN G,]N C N otesto FinancialStatem ents N OTE 15 I.EA SES 0 ;ia ugust I, 1990,the Councilrenegotiated their lease for ten years w ith m onthly rental paymentsof $1,000 perm onth. In July of 2000,the Council,again,renegotiated theirlease beginning in August2000 for a m onthly rentalpaym entof $700,w ith a sixty-day notice of cancellation after the firstof the three-year tenn. Below is a schedule by years of filture m inim um rentals atjune 30,2001: Yearendm ~ J ne 30, $ 8,400 8,400 $ _ 7: 00 Sub-leasing the property isprohibited exceptfor the purpose of using the prem ises for the benefitof the seniorcitizens of St.M artin Parish. Ren(expense forthe yearended June30,2001,is$8,400 N OTE 16 I';X CESS IgX PEN I)ITURES OV ER APPI(OPR 1ATION S A tyear-end,expendituresexceeded appropriationsin the Title litc-i specialrevenue fund by $511.These excessexpenditureswerefunded through transfersfrom otherfunds.

24 SU PPLEM EN TAR Y INFO R M A TIO N

25 SC IIED U LES O F IN D IVID U AL FUN D S

26 ST.M A RTIN COU NCIL O N AGING,INC Statem ento f Program Revenues,Expenditures,And ChangesIn Fund Balance -G eneralfund Y ear Ended June 30,2001 Revenues: ]ntcrgoverum ental: 1'CO A D eparhnentof 1lealth and llospitals 1,ocaland m iscellaneous: St.M arlin Parish Policy Jury St.M artm villc City Council City of Breaux Bridge V illage of Parks ]'M S Revenue ]nlereslirlcoltle Fund raising U tility assistance l)onations M iscellaneous Totalrevenues l~.xpendilures: Current: Salaries Fringe Travel O perating services O perating supplies O thercosts Totalexpenditures Local 10,320 8,000 15,000 5OO 1, ,650 3,593 1,175 _ ,9~ _1_ ,496 1,576 _.10~412 1 _6~06 ~ PCOA A ct735 M edicaid Total $ 21,779 $ _. 21,779 5!,77~4 $ 21,779 51,774 51,774 _ 10,320 8,000 15, , ,650 3,593 1,175 _2,9_02 ~ LS~4~5_S4 54O 43 3,496 1,576 ~ Excessof revenuesovercxpcndilures 28,834 21,779 51, ,387 O therfinancing uses: O perating transfersoul ~ A~3_9,3_09~ (21,779) ~ (5_1,77~.1 ~ (/!L 8~ ) Excessof revenuesoverexpenditures and olheruses Fund balances,beginning of year (10,475) 32,392 (10,475) 32,3.9_2 l"und balances,end of year _~ 21,917 ~. - $~ ~ 2_1~9!7

27 ST.M A RTIN C OU N CIL O N A GING,IN(; Com bium g Schedule O f Revenues,Expenditures,And ChangesIn Fund Balances A llspecialrevenue Funds Y earended June 30,2001 R even'tles: Intcrgovernm ental: Governor'sO ffice of Elderly A ffairs l)cpartm entof Transportation and D evelopm ent D cpm-tm entoflteallh and Ilum an Services l'rogram Localand m iscellarjeous Totalrevenues Title III-B Title III-C-1 Tillc 11I-C -2 $ 65,352 $ 25,182 $ 36,597 4,692 70,044 5,680 22, _ ~9~187 Expenditures Current- Salaries Fringe Travel O peraling services O peraling supplies O lhercosts Totalexpenditures 155,756 23,377 12,285 30,701 9,456 2, ,057 15,033 1, ,305 1,161 25,2L~ 46,603 5,423 16,216 6,739 1, ,U28 Excess(deficiency)ofrevenues overexpenditures (164,0B) s_,~80 (17,011) Otherfinaucing sources(uses) O perating transfersin O perating transfersout (5,68Q) 17,011 Totalotherfinancing sources(uses) _ 164,013 (5.~ 17~01/ Excess(deficiency)ofrevenues and othersourcesover expendituresand otheruses Fund balances,beginning of year Fund balances,end of year 25

28 Title lll-f U nitcd W ay Senior Center O m budsm an Supplem ental SeniorCenter Title X IX $ $ $ 26,533 $ 3,941 $ 4,158 $ 18,748 - ~ 27,394 2, ~94 26,533 3,94! _ 4,158 _! , _ 2,876 4,369 4,369 1, , ~941 27,~ 22,164 4,!58 _!8,4 Z48 (27,394) ~ 22,164) (2.39 4) (22,164) (4,~ (1~ 74j ~D (4,158) (18,7_483

29 ST.M A RTIN COU N CIL O N A G IN G,INC Com hining Schedule O f Revenues,Expenditures,And ChangesIn Fund Balances- A llspecialrevenue Funds Y earf,nded June 30,2001 (Continued) Rcvcuucs: ]utcrgovcnunental: Govcrnor'sOfficc of Elderly A ffairs D epartm entof Transportation and D evelopm ent D eparlm entof IIealth and llum an Services Program l.ocaland m iscellaneous Totalrevenues Section 5311 $ $ 52,121 _ 2!21 Transportation O ther Total $ 164, ,748 1,459 34, _ 27,480 1,514 _ 29L40~ Expenditures Cunent- Salaries Fringe 3~avel O perating services O perating supplies O thercosts Totalexpenditures 34,373 5, ,564 7,242 35! _ ,129 36,124 31,180 65,422 19,526 _. 2, ,221 Excess(deficiency)ofrevenues overexpenditures _ 52,!2_1 _. (62,!03) (!12,862) Otherfinancing sources(uses) Operating transfersin O perating transfers out _ (52,!2_!3 62, ,127 l [3~2f~) Totalotherfinancing sources(uses) _ (52,!2~ ) 62, ,862 Excess(deficiency)ofrevenues and othersourcesover cxpcndituresand otheruses Fund balances,beginning of year Fund balances,end of year 27

30 ST.M A RTIN CO U N CIl.O N A G ING,IN C Statem ento f ExpendituresAnd O therfinancing U ses- Budget(GAAP Basis)And Actual-ContractsAnd Grants Provided Through Thel,ouisianaGovernor'sOffice OfEldcrly Affairs(GOEA) A ctual V ariance - Favorable (Unfavorable) Title IlI-B Salaries Fringe Travel O perating services O perating supplies O thercosts $ 156,269 23,728 12,025 29,581 9,533 3,329 $ 234~46_5 $ 155,756 23,377 12,285 30,701 9,456 - _ 2,482 $ 234, (260) (l,120) 77 8A 7 $ 40_8 "l'itl~ 111C-I Salaries Fringe Travel O perating services O perating supplies O thercosts 3Yansfers outto Title 111C-2 $ 14,964 1,699 1,138 6,345 1, ,!8_4 $ 3Q,3~ $ 15,033 1, ,305 1, ,680 (69) (63) (122) _ (496) Title 111C-2 Salaries Fringe 3Yavel O perating serviees O pcrating supplies O thercosts $ 47,268 5,285 16,614 6,681 1, $ 77,233_ $ 46,603 5,423 16,216 6,739 1,177 ~ _7_G!98 $ 665 (138) 398 (58) ,079 I~GOA-Act735 Transfersto otherfunds Title IllB $ 21,779 ~ ~ 779. $ 28

31 ST.M ARTIN COU N CIL ON A G IN G,1N C Statem ento f ExpendituresAnd O therfinancing U ses- Budget(GAAI'Basis)And Actual-ContractsAnd Grants Provided Through TheLouisianaGovern or'soffice OfElderly Affairs(GOEA) (Continued) Budgeted A ctual V ariance - Favorable (Unfavorable) Tillc III-F Salarics Fringe Travel O perating services O perating supplies O lhcrcosts $ 1, _ 2 $ 2,87j 1,715 $ $ (229) (47) (86) SeniorC enter O perating services Transfers outto: $ 4,347 $ 4,369 _22. _1~ 22,!_6_4 $ 26.5~ $ (22) 22 $ - Transfersoutto Title 11IB Q ~m~ a 0~ s ajm Salaries Fringe Travel O perating services O perating supplies O thercosts $ 1, ,120 1, $ 4,160 1, (2) 501 (40) (323) L 219

32 IN TER N AL C O N TR O L A N D C O M PI~IAN C E

33 A D arnall,sikes ~FredericL, I(ugencll.I)arlnlh CPA,Relilcd1990 Ii;IL~lly Sikc~,C ]'A,(?wm I)Iiiiily PIIicdel]tk,(:I'A C ~lyk%ll]i: ])llld~lll,c }'A I llt~one II I,ntn~lh III.('pA ]'aura l) llihln.c F'A SIcI}htLIIiC ~ Ili[~[~illbOlb llll,c }'A John I'.A,,,,~llo,C L'^ J~llllilel S Z icgicl,(']'a ('hlls A M illcl,c }'A S~ei,l,e,,1~ I~J~,hh-,,M I~A,C ~'A Slevcn (; ~ tltlsi,.('},a lndcpcndcnta uditor'sr eporto n Com pliance A nd O n Intern alcontrolo verfinancial Reporting B ased O n An A udito f G eneral l'urpose FinancialStatem entsperform ed In A ccordance W ith G overnm enta uditin~ StandaM s The Board of l)irectors St.M allin Councilon A ging,inc Breaux Bridge,l.ouisiana W e have audited the generalpurpose financialstatem ents of the St. M artin Councilon A ging, Inc.,asof and forthe yearended June 30,2001,and have issued ourreportthereon dated July 30, W e conducted ourauditin accordance w ith auditing standardsgenerally accepted in the U nited States of A m erica, and the standm'ds applicable to financial audits contained in G overn m enta ndiling Standa[ds,issued by the Com ptrollerg eneralof the U nitcd States ('ompljance. A spartof obtaining reasonable assurance aboutw hetherthe St.M alin Councilon A ging,luc.'s generalpnrposc financialstatem ents are free of m aterialm isstatem ent,w e pcrfonncd testsof its com pliance w ith certain provisionsof law s,regulations,contractsand grants,noncom pliance w ith w hich could have a directand m aterialeffecton the determination of generalpro pose financial statem entam ounts, llow ever,providing an opinion on com pliance w ith those provisionsw asnot an objective ofourauditand,accordingly,wedo notexpresssuch an opinion.theresultsofour testsdisclosed no instancesof noncom pliance thatare required to be reported underg overnm ent A uditing Standards. InternalC ontrolo verfinancialr eportinp~ In planning and perform ing our audit,w e considered the St.M artin Councilon A ging,lue.'s intern al controlover financialreporting in order to determ ine our auditing procedures for the purpose of expressing ouropinion on the generalpurpose financialstatenaentsand notto provide assurance on the internalcontrolover financialreporting, llow cver,w e noted a certain m atter involving the intern alcontrolovcrfinancialrepoling and its operation thatw e considerto be a reportable condition. ]l~filytqlc.ia II: ]aur~lavcl~uc ]:lllli(,clia (; i2(ijjli,ish t-ilia It.lltlt, Sulte3O I M t,tg~lllc il),ia 7O38O ,(,264 4O4 I't.lc M cgrcl A lle~illc IA '// '135471

34 Rcportablc conditions involve m atters com ing to ourattention relating to significantdeficiencies in the design oroperation of the internalcontroloverfinancialreporting that,in ourjudgment,could adversely affectthe St.M artin Councilon A ging,inc.'s ability to record,process,sum m arize and reportfinancial data eonsistcnl w ith the asserlions of m anagem ent in the gen eral purpose financial statem ents. The reportable condition isdescribed in thc accom panying schedule of findingsand questioned costsasitem A m aterialw eaknessisa condition in w hich the design oroperation of one orm ore of the intern alcontrol com ponen ts doesnotreduce to a relatively low levelthe risk thatm isstatem entsin am ountsthatwould bc m aterial in relation to the generalpurpose financialstatem ents being audited m ay occur and notbe detected w ithin a tim ely period by em ployees in the norm alcourse of perform ing theirassigned functions. O urconsideration of the internalcontrolstructure overfinancialreporting w ould notnecessarily disclose allm attersin the intern alcontrolstructure thatm ightbe reportable conditionsand,accordingly,w ould not necessarily disclose allreportable conditions thatare also considered to be m aterialw eaknesses asdefined above.h ow ever,w e believe the reportable condition described above as 01-1isa m aterialw eakness. Thisreportis intended solely forthe inform ation and use of the B oard of D irectors,m anagen aen t,others w ithin the O rganization and federalaw arding agenciesand isnotintended to be and should notbe used by anyone otherthan ihose specified parties. A C oq~oration of C ertified Public A ccountants Lafayctle,Louisiana July 30,

35 O TtlER SUPPLEM EN TA R Y INFO R M ATIO N 33

36 ST.M AR l'in CO UN CIl.O N AG ING.INC Schedule O f ChangesIn G eneralfixed A ssets Y earended June 30,2001 Balance June 30, 2000 D eletions Balance June 30, 2001 G eneralfixed assets,atcost Furniture & fixtures V ehicles $ 47,685 90,570 $ 14,481 $ 33,204 Totalgeneralfixed assets $ 138,255 $. ~ _.1~48 ~ 1. $.!23,774 lnvcslm cnts in generalfixed assets Title IllB 3'itle 11IC-I Title Ill(;-2 SeniorCenler Section 531I Local Title IllF Title IllG Section 5310 l)onated-ca A A D onated-u nited W ay $ , ,515 25,978 8, ,410 3,975 L , , $ ,515 15,761 7,654 30,410 3,652 1,328 Totalinveshnentsin general fixed assets ~_13.8,255 $ $._~ 81 ~ 123,774 34