TW ELFTH W A R D SA VE O U R C O M M U N ITY O R GA NIZ A TIO N,IN C.

Transcription

1 I r C?,"::13 ':'~?-L~3 TW ELFTH W A R D SA VE O U R C O M M U N ITY O R GA NIZ A TIO N,IN C. FIN A N C IA L A N D C O M PL IA N C E A U D IT TO G ETH ER W ITH IN D E PEN D EN T A U D IT O R S'R E PO R T FO R TH E Y EA R EN D ED JU N E 30,2002 Underprovisions ofstate Prow, this reportis a pil:j;ic docum enl A cor~y oft!~o r. ::'rt h~ :!:r:(:,-ir::":~m ited to the entit~,m:d c:",'tr~:,:.-: :t-:~, :~.; ::r'~. The report [se=.;l~b:,-f:: -,::,-] ::-,: :~ : :,;h~to l Rouge o(~,ce %'fi:i::l :::~ \,,:,, ", ~:h(:'~ appropriate,a~the cfi,ce o:ti~e ~:~r~s:;c;urk ofcourt, Release Date ( O %

2 TA BLE O F C O N T E N T S PA G E IN D EPEN D EN T AU D ITO R S'R EPO RT STA TEM EN T O F FIN A N C IA L PO SITIO N A T JUN E 30, STA TEM EN T O F A CTIV ITIES FO R TH E Y EA R EN D ED JUN E 30,2002 STA TEM EN T O F FUN CTIO N A L EX PEN SES FO R TH E Y EA R EN D ED JUN E 30,2002 STA TEM EN T O F CA SH FLO W S FO R TH E Y EAR EN D ED JUN E 30,2002 N O TES TO TH E FIN A N C IA L STA TEM EN TS 7 SU PPLE M E N TA R Y IN FO R M A T IO N : SC H ED U LE O F G RA N T A C TIV ITY FO R TH E YE A R EN D ED JUN E 30,2002

3 TA BLE O F C O N T EN TS,C O N TIN U E D PA G E IN D EPEN D EN T A U D ITO R S'REPO RT O N CO M PLIA N CE AN D O N IN TERN A L CO N TRO L O V ER FIN A N CIA L REPO RTIN G BA SED O N AN A U D IT O F FIN A N CIA L STA TEM EN TS PERFO RM ED IN A CCO RD AN CE W ITH G O V ERN M EN T A U D ITIN G STA N D A RD S SCHEDULE OF FIN DIN GS AND QUESTIONED COSTS STA TU S O F PRIO R Y EAR 'S FIN D IN G S AN D R EPO RTA B LE C O N D ITIO N S EX IT CO N FERE N CE 22

4 M em ber Am erican Institute of Certified Public Accountants Society oflouisiana Certified Public Accountants M ichaelb.bruno,cpa Alcide J,Tervalon,Jr.,CPA W aldo J.M otet,jr.,cpa PaulK.Andoh,St.,CPA IN D EPEN D EN T A U D ITO R S'R EPO R T To file Board of D irectors Tw elfth W ard Save O ur C om m unity O rganization,inc. W e have audited the accom panying statem entof financialposition of Tw elfth W ard Save OurCommunity Organization,Inc.(anot-for-profitcorporation)asofJune30,2002 an d the related statem entsof activities,functionalexpenses and cash flow s forthe yearthen ended. These financialstatem ents are the responsibility of the m anagem entof Tw elfth W ard Save O ur Com munity O rganization,inc.(the O rganization).ourresponsibility isto expressan opinion on these financialstatem entsbased on ouraudit. 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 overnm enta uditing Standards',issued by the C om ptrollerg eneralof the U nited States. Those standardsrequire th atw e plan an d perform the auditto obtain reasonable assurance aboutw hether the financialstatem entsare free of m aterialm isstatem ent. An auditincludes exam ining,on a testbasis,evidence supporting the am ountsan d disclosur esin the financial statem ents.an auditalso includesassessing the accounting principlesused and significant esthnates m ade by m an agem ent, as w ell as evaluating the overall financial statem ent presentation. W e believe thatour auditprovidesa reasonable basis for our opinion. In our opinion,th e financial statem ents referred to above present fairly,in allm ateri al respects,the financialposition of Tw elfth W ard Save O ur C om m unity O rganization,inc. asof Jun e 30,2002,and the chan gesin itsnetassetsan d its cash flow sfor the year then ended in conform ity w ith accounting principlesgenerally accepted in the U nited Statesof Am erica ELYSIAN FIELDS AVENUE.NEW ORLEANS.LA (504) FAX (504) E-M AIL:bru~terv@ btcpas corn

5 IN D EPEN D EN T A U D ITO R S'RE PO R T (CONTINUED) To the Board of D irectors Tw elfth W ard Save O ur C om m unity O rganization,inc. Page 2 In accordance w ith G overnm enta uditing Standards,w e have also issued our reportdated D ecem ber 30, 2002 on our consideration of Tw elfth W ard Save O ur C om m unity O rganization,inc.'s internalcontrolover financialreporting an d onr testsof itscom pliance w ith certain provisionsof law s,regulations,contractsan d grants. Thatreport isan integr al partof an auditperform ed in accordance w ith G overnm enta uditing Standards,an d should be read in conjunction with thisreportin considering theresultsof ouraudit. O ur auditw as perf orm ed for the purpose of form ing an opinion on the basic fin an cial statem entsof Tw elfth W ard Save O ur C om m unity O rganization,inc.taken as a w hole. The accom pan ying schedule of gran tactivity ispresented for purposes of additionalan alysis and is not required part of the basic finan cial statem ents. Such inform ation has been subjected to theauditing proceduresapplied in tileauditof thebasicfinan cialstatementsand, in our opinion,is fairly stated,in allm aterialrespects,in relation to th e basic finan cial statem entstak en asa w hole. BR U N O & TER V A L O N LLP C ER TIFIED PUBLIC A C C O U N TA N TS D ecem ber 30,2002 fb A runo Tervalon ~ -~'Certi~ied P~.blicAccountants

6 TW ELFTH W A R D SA V E O U R C O M M U N ITY O R G A N IZA TIO N,IN C. STA TEM EN T O F FIN AN CIA L PO SITIO N JU N E 30,2002 A SSETS CurrentA ssets: C ash A ccountsreceivable Grantsreceivable Totalcurrentassets $ 47,686 1,650 10, Property and equipment,net(note 3) Totalassets 153,627 $213,372 LIA B ILITIES A N D N ET A SSETS CurrentLiabilities: Currentportion ofnotepayable(note 4) A ccounts payable A ccrued expenses Notepayable(NOTE 4) Totalcurrentliabilities Totalliabilities $ 8,487 16, ,708 CONTIN GENCIES (NOTES 6 an d 7) N etassets,unrestricted Totalliabilitiesand netassets The accom panying notesare an integralpartof thisfinancialstatem ent

7 TW ELFTH W A R D SA V E O UR C O M M U N ITY O R G A N IZA TIO N,IN C. STA TEM EN T O F A CTIV ITIES FO R TH E Y EA R EN D ED JU N E 30,2002 R evenue and Support: G rantor-state of Louisian a R entalincom e O ther revenue Totalrevenue and support $635,578 25, _460 Expenses: Program services: M ilan Reading and M ath program M artin Luther K ing H om em aker Services progr am M ilan -B roadm oor Senior C enter program InnerCity M inority AidsAw arenessand O utreach progr am Louisiana Stadium an d Exposition D istrict Legislative progr am Totalprogr am services Supportservices: M anagem entand general Totalexpenses Change in netassets N etassetsatbeginning of year 310, ,000 85, ,501 5, _ , N etassetsatend of year The accom panying notesare an integralpartof thisfinancialstatem ent. 4

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9 TW ELFTH W A R D SA V E O U R C O M M U N ITY O R G A N IZA TIO N,IN C. STA TEM EN T O F CA SH FLO W S FO R TH E Y EA R EN D ED JU N E 30,2002 Cash Flow s from O perating A ctivities: Change in netassets Adjustmentstoreconcilechan gein netassetsto net cash provided by operating activities: D epreciation Chan ges in assetsand liabilities: Increase in other assets D ecrease in accountsreceivable Increase in grantreceivable D ecrease in accrued expenses Increase in accountspayable $ 19,309 5,679 (932) 9,186 (10,409) (408) N etcash provided by operating activi ties C ash Flow s from Investing A ctivities Repaym entson note payable Increase in cash C ash,jtm e 30,2001 Cash,June 30,2002 Interestpaid N etcash used in financing activities (8,218) (8,218) 16,255 31,431 $ 47,686 $ _ 1,782 The accom pan yin g notesare an integralpartof thisfinancialstatem ent

10 TW ELFTH W A R D SA V E O U R C O M M U N ITY O R G A N IZA TIO N,IN C. N O TES TO TH E FIN A N CIA L STA TEM EN TS N O TE 1- O reanization and Pum ose B ackground The Twelfth W ard Save Our Community Organization, Inc. (the "Organization")isa not-for-profitcorporation organized underthelawsof the State of Louisiana.The purpose forw hich the O rganization is organized are exclusively religious,charitable,scientific,literary,and educationalw ithin themean ing of Section 501(c)(3)of theinternalrevenuecodeof 1986 orthe corresponding provision of any future United StatesIntern alrevenue Law. G eneral A sof June 30,2002,the O rganization adm inistered the follow ing program s ~ M ilan Reading an d M ath Program ; ~ M artin Luther King H om em aker ServicesProgr am ; ~ M ilan -Broadm oor Senior Center Progr am ;an d ~ InnerCity M inority AidsAw arenessand Outreach Program A brief description of each program follow s ~ M ilan Readin~ an d M ath Program The M ilan Reading and M ath (M ilan Reading /M ath) Program was established in 1977.The m ain pnr pose of the program isto provide plans of study in reading and m athem aticsto enrolleesof the program.a lso,the progr am provides assistance to students in reading, m athem atics, homework assistan ce,computerliteracy an d otherspecialprojectsthat students m ay have to do for school. The m ain goals are to help the studentsadvance in their schoolw ork and advance in their gr ade level.

11 TW ELFTH W A R D SA VE O U R CO M M UN ITY O R G A N IZA TIO N,IN C. N O TES TO TH E FIN A N CIA L STA TEM EN TS,CON TIN U ED N O TE 1- O rganization an d Puroose.Continued G eneral,continued ~ M artin Luther Kin spro The M artin Luther King Homemaker Serv ices (M LK Homemak ers) Program began in Themajoractivitiesoftheprogram consistof perform ing routine household tasks including dusting,w ashing dishes, sw eeping,running errands,shopping,and som e otherservicesneeded or requested by clients.the program provides com panionship and any other socialization or clean ing activitiesthatw illm ake the clientsdaily living easier. ~ M ilan -B TheM ilan-broadmoorseniorcenter(m ilan Area Senior)Progr am was established in The program w as created to facilitate and actively adm inister to its m an y elderly th eir need of supportive services an d activitiesw hich w illenhan ce their dignity,foster their independence an d encourage comm unity involvem ent.the progr am providestran sportation for seniorsto and from the center to receive a w ellbalan ced m id-day m eal. O th er activi tiesare planned for socialization,health related,recreational and educationalactivities. ~ InnerCity M inority AidsAw arenessand O utreach Pro~ran l The InnerCity M inority AidsAwarenessand Outreach Program began in The progr am is an educationaloutreach thataim s to educate al l m em bersof the comm unity especially innercity m inority in th e prevention of H IV/A ID S. The prim ary goalof the program isto distribute brochures an d other educationalm aterialsin shopping centers,m ar ketsan d churches. The program also organizesa gian trally form em bersof the com m unity.

12 TW ELFTH W A R D SA VE O U R C O M M U N ITY O R G A N IZA TIO N,IN C. N O TES TO TH E FIN AN CIA L STA TEM EN TS,CO N TIN U ED N O TE 1- O rganization an d Pum ose.c ontinued: G eneral,continued The Louisiana Stadium an d Exposition D istrictlegislative Program w as created for im proving the building w hich houses other progr am s of the O rganization through the funding received from the State of Louisiana, H otel/m oteltax asprovided under Senate B illn o.1108,now A ct1380. The purpose of the program isto m ake the building safer and m ore secure for progr am participan tsand em ployeesof the O rganization.funding is used forinstallation of a security cam era system,a fire alarm system,an air conditioning system and repairsto the building. N O TE 2 - Smrnm arv of SimaificantA ccounting,policies B asisof A ccountin~ The fnancial statem ents of the O rganization are prepared on the accrual basis. A ccordingly,revenue is recorded when earned an d expenses are recorded w hen incurred. U se of Estim ates The prepar ation of financial statem ents in conform ity w ith accounting principles generally accepted in the United States of A m erica requires m anagem ent to m ak e estim ates an d assum ptions that affect th e reported am ounts of assets an d liabilities and disclosure of contin gent assets an d liabilitiesatthe date of the financialstatem entsand the reported am ounts of revenuesand expenses during the reporting period.a ctualresultscould differ from those estim ates.

13 TW ELFTH W A R D SA V E O U R C O M M U N ITY O R G A N IZA TIO N,IN C. N O TES TO TH E FIN A N CIAL STA TEM EN TS,CO N TIN U ED N O TE 2 - Sum m ary of SimaificantA ccounting Policies,Continued Incom e Taxes TheOrganization isexemptfrom incometaxesundersection 501(c)(3)of the InternalRevenue Code. Therefore,no provision forincom e taxeshasbeen m ade in the financialstatem ents. C ontributions Conu-ibutionsare recognized w hen the donor m akes a prom ise to give to the O rganization th at is,in substance,unconditional. Contributions that ar e restricted by the donor are reported asincreases in unrestricted netassets if the restrictionsexpire in the year in w hich the contributionsare recogn ized.a ll other donor-restricted contributions ar e reported asincreases in tem porarily or perm anently restricted netassets depending on the nature of the restrictions. W hen a restriction expires,tem porar ily restricted netassetsare reclassified to un restricted netassets. The O rganization usesthe allow ance m ethod to determ ine the uncollectibility of unconditionalprom isesreceivable. The allow ance isbased on prior year 's experience and m anagem ent'sanalysisof specific prom isesm ade. C ontributed Equipm ent Contributed equipm entisrecorded atfairvalue atth e date of donation. If a donor stipulates how long the assets m ust be used,th e contributions are recorded as restricted support. In the absence of such stipulations, contributionsof equipm entar e recorded as tm restricted support. A llocation of FunctionalExoenses Th e costs of providing the var ious program s and activities have been sum m arized on a functional basisin the statem ent of activities. 3_0

14 TW E LFTH W A R D SA V E O U R C O M M UN IT Y O R G A N IZA TIO N,IN C. N O TES TO TH E FIN AN CIA L STA TEM EN TS,CO N TIN U ED N O TE 2 - Sum m ary of SignificantA ccountin~ Policies.Continued A llocation of FunctionalExoenses.Continued A ccordingly,program and supportservice expensesare specifically identified w ith or allocated to the O rganization's variousfunctions.expensesrequiring allocation include servicesprovided by the O rganization's m anagem entand adm inistrative staf to specific program -related activities. Expense allocationsare prorated based on a percentage of tim e or actualusage. FinancialStatem entpresentation The financial statem ents ar e presented in accordance w ith Statem ent of Financial Accounting Standards (SFAS) No. 116, "Accounting for C ont ributions R eceived and C ontributions M ade", an d SFA S N o. 117, "Fin ancial Statem ents of N ot-for-profit Organizations". SFA S N o. 116 requires that unconditional promises to give (pledges) be recorded as receivables and revenues and requires the O rganization to distinguish betw een contributions received for each netassetcategory in accordan ce w ith donor-im posed restrictions. U nder SFA S N o. 117, the O rganization is required to report inform ation regarding itsfinan cialposition and activities according to three classes of netassets:unrestricted netassets,tem porarily restricted netassetsand perm anently restricted netassets. In addition, the O rganization is required to presenta statem entof cash flow s.a sperm itted by th is statem ent, the O rganization has discontinued its use of fund accoun ting an d has,accordingly,reclassified itsfinancialstatem entsto present th e required classesof netassets.a tjune 30,2002,the O rganization hasno tem porarily restricted,or perm an ently restricted netassets. Fair V alue of FinancialInstrum ents The estim ated fair value of allsignificantfinancialstatem entam ountshave been determ ined by the O rganization using available m arketinform ation and appropriate valuation m ethodologies. 3_3_

15 TW ELFTH W ARD SAVE O UR COM M UNITY ORGANIZATION,INC. N O TES TO TH E FIN AN CIA L STA TEM EN TS,CO N TIN U ED N O TE 2 - Sum m ary of SienificantA ccountine Policies.C ontinued: T he O rganization considers the carrying am ounts of cash,note payable, accounts payable and accrued expensesto approxim ate fair value. Prooertv an d Eauiom ent Property an d equipm entare recorded atcostless accum ulated depreciation. D epreciation iscom puted using the straight-line m ethod over the estim ated usefullivesof the related assets. SunoortR ecognition R evenuesreceived under governm entgrantprogr am s are recognized w hen earned. Contributionsare recognized asrevenue w hen they are received or unconditionally pledged. C ontributions are considered to be available for unrestricted use unlessspecifically restricted by the donor. N O TE 3 - Prooertv and Eouiom en Property an d equipm entconsisted of the follow ing atjune 30,2002 Lan d Building an d Im provem ents Furniture an d equipm ent A utom obile $ 25, , ,802 65_ ,004 Lessaccum ulated depreciation (197,377) $ 153,

16 TW ELFTH W A R D SA V E O U R C O M M U N ITY O R G A N IZA TIO N,IN C. N O TES TO TH E FIN AN CIAL STA TEM EN TS,CO N TIN U ED N O TE 4 - N ote Payable A sum m ary of the note payable as of June 30,2002 is asfollow s 3% note due in 15 annualinstallm ents of $10,000,including principaland interest,secured by the building Less:currentportion Total $57,797 (8,487) $49,310 The principalpaym entsdue on the note payable for the nextfive yearsare as follow s: Y ear Ended June 30, Subsequentto 2006 $ 8,487 8,742 9,004 9,274 22,290 Rentalexpensesresulting from facility operating leasesapproxim ate $25,200 for the year ended June 30, _3

17 TW ELFTH W A R D SA V E O U R C O M M U N ITY O R G A N IZA TIO N,IN C. N O TES TO TH E FIN A N CIAL STA TEM EN TS,CON TIN U ED N O TE 5 - Com m itm ents,continued The future m inim um lease paym ents under noncancelable operating leases as of June 30,2002,thathave rem aining lease term s w ithin a year am otm ted to $25,200. The O rganization has entered into contractu al arrangem ents w ith certain individuals to provide operationalassistance,tu torial,self-developm ent,and recreationalassistan ce.such contractsaregenerally forsix (6)to tw elve (12) m onth periods. N O TE 6 - Contingencies T he O rganization isa recipientof grantsfrom State funds.these gran ts are governed by var ious State guidelines,regulations,and contractualagreem ents. The adm inistration of the progr am sand activitiesfunded by th ese gran tsis underthecontrolof the Organization and issubjectto auditand/orreview by th e applicable fim ding sources. A ny grantoraw ard funds found notto be properly spentin accordan ce w ith th e term s,conditions,and regulations of the funding sourcesmay besubjectto recapture. AtJune 30,2002,approximately ninety-six (96)percentof the Organization's operatin g supportisderived from gr ants. 3_4

18 TW ELFTH W A R D SA V E O U R C O M M U N ITY O R G A N IZA TIO N,IN C. N O TES TO TH E FIN AN CIA L STA TEM EN TS,CON TIN U ED N O TE 7 - Risk M anagem ent T he O rganization isexposed to various risk of lossrelated to torts,theft of; dam age to and destruction of assets for w hich the O rganization carries com m ercialinsurance. Liabilitiesare reported w hen itis probable thata loss hasoccurred and the am ountof the losscan be reasonable estim ated. N O TE 8 - Concentration of CreditRisk The O rganization m aintainscashbalancesatseveralbanks.a ccountsateach institution ar e insured by the FederalD epositinsurance C orporation up to $100,000. 3_5

19 SU P P L E M E N T A R Y IN F O R M A T IO N

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21 M em ber Am erican Institute of Certified Public Accountants Society oflouisiana Certified Public Accountants M ichaelb.bruno,cpa Alcide J.Tervalon,Jr.,CPA W aldo J.M otet,jr.,cpa PaulK.Andoh.Sr..CPA IN D EPEN DEN T A U DITO R S'REPO R T O N C O M PLIA N CE A N D O N IN TER NA L C O N TR O L O VE R FIN A N C IA L REPO R TIN G BA SED O N A N A UDIT O F FINA N C IA L STATEM ENTS PERFORM ED IN ACCO RDANCE W ITH G O V ER N M E N T A U D ITIN G STA N D A RD S To the Board of D irectors Tw elfth W ard Save O ur C om m unity O rganization,inc. W e have audited th e f'm ancial statem ents of Tw elfth W ard Save O ur C om m unity O rganization,inc.(theorganization),asofand fortheyear ended June30,2002 and have issued our reportthereon dated D ecem ber30,2002.w e conducted our auditin accordance w ith auditing stan dar dsgenerally accepted in the United Statesof Am erica an d the standards applicable to finan cialauditscontained in G overnm enta uditing Standards,issued by the Com ptrollerg eneralof the U nited States. C om pliance A s partof obtaining reasonable assurance aboutw heth er the O rganization's finan cial statem ents are free of m aterialm isstatem ent,w e perform ed tests of its com pliance w ith certain provisions of law s,regulations,contracts and grants,noncom pliance w ith w hich could have a directand m aterialeffecton the determ ination of financialstatem entam ounts. However,providing an opinion on complian cewith thoseprovisionswasnotan objective of ourauditan d,accordin gly,w e do notexpresssuch an opinion. The resultsof ourtests disclosed no instancesof noncom plian ce th atare required to be reported under G overnm ent Auditing Standards. 3.7 /~298 ELYSIAN FIELDS AVENUE,NEW ORLEANS, IA (504) FAX (504) E M AIL:brunterv@ btcpas corn

22 IN D EPEN D EN T A U D ITO R S'R EPO R T O N C O M PLIA N C E A N D O N IN TER N A L C O N TR O L O V ER FIN A N C IA L R EPO R TIN G BA SED O N A N A U D IT O F FIN A N CIA L STA TEM EN TS PER FO R M ED IN A C C O RD A N C E W ITH G O V E RN M EN T A U D ITIN G STA N D A R D S (CONTINUED) To the B oard of D irectors Tw elfth W ard Save O ur C om m unity O rganization,inc. InternalC ontrolo ver FinancialR euortin~ In planning and perform ing our audit,w e considered the O rganization's internalcontrol overfinancialreporting in orderto determ ine our auditing procedur esforthe purpose of expressing our opinion on the financial statem ents and notto provide assurance on the in ternalcontrolover financialreporting. Our consideration of th e internalcontrolover financialreporting w ould notnecessarily disclose allm attersin the intern alcontrolover financialreporting thatm ightbe a m aterialw eaknesses.a m aterialw eaknessis a condition in w hich the design or operation of one orm ore of the intern alcontrolcom ponentsdoesnot reduce to a relatively low levelthe risk thatm isstatem ents in am ountsth atw ould be m aterial in relation to th e financialstatem entsbeing audited m ay occur an d notbe detected w ithin a tim ely period by em ployees in th e norm alcourse of perform ing their assigned fim ctions.w e noted no m attersinvolving the internalcontrolover financialreporting and itsoperation that w e consider to be m aterialw eaknesses. Thisreport is intended solely for th e inform ation and use of th e Board of D irectorsan d th e m an agem entof Tw elfth W ard Save O ur C om m unity O rganization,inc.,an d for filin g w ith th e regulatory agencies,an d th e pass-through entity an d should notbe used by anyone other than th ese specified parties. B R U N O & TER V A L O N L L P C E R TIFIED PU BLIC A C C O U N TA N TS D ecem ber30,

23 TW ELFTH W A RD SA V E O U R C O M M U N ITY O R G A N IZA TIO N,IN C. SCHEDULE OF FINDINGS AND QUESTIONED COSTS FO R TH E YEA R EN D ED JUN E 30,2002 I. SU M M A R Y O F A U D ITO R S'R E SU L TS A. The type of reportissued on the financialstatem ents: unqualified opinion. B. Reportable conditions in internal controlwere disclosed by th e audits of the fin ancial statem ents: none reported m aterialw eaknesses: no. C. N oncom pliance w hich ism aterialto the financialstatem ents: no. D. Reportableconditionsin intern alcontrolovermajorprogram s: notapplicable m aterialw eaknesses: notapplicable. E. Thetypeof reportissued on complian ceformajorprogr am s: notapplicable. F. Any auditfindingswhich arerequired to bereported undersection 510(a)of O M B C ircular A -133: notapplicable. G. M ajorprogram s: notapplicable. H. D ollar threshold used to distinguish betw een Type A and Typ e B program s notapplicable. A uditee qualified asa low -risk auditee under section 530 of O M B Circular A -133 notapplicable. J. A m anagem entletter w asissued: no 19

24 TW ELFTH W A R D SA V E O U R C O M M U N ITY O R G A N IZA TIO N,IN C. SCHEDULE OF FINDINGS AND QUESTIONED COSTS,CONTINUED FO R TH E Y EAR EN D ED JUN E 30,2002 II. FIN D IN G R ELA TIN G T O TH E FIN A N C IA L STA TEM EN T S R EPO R TE D N o m attersreported III. FIN D IN N otapplicable 20

25 TW ELFTH W A R D SA V E O U R C O M M U N ITY O R G A N IZA TIO N,IN C. STA TU S O F PRIO R YEA R 'S FIN D IN G S A N D REPO RTA BLE CON D ITION S IN TER N A L C O N TR O L A N D C O M PLIA N C E M A T E R IA L T O TH E FIN A N C IA L STA TEM E N T S N o m atersreported IN T E R N A L C O N TR O L A N D C O M PL IA N C E M A T E RI A L T O FED E R A L A W A R D S N o prior year com m entsreported. 3. M A N A G E M EN T L E T TE R N o m attersreported.

26 TW E LFTIt W A R D SA V E O U R C O M M U N ITY O R G A N IZA TIO N,IN C. EXIT CON FEREN CE The auditreportw asdiscussed w ith representativesof the O rganization on D ecem ber 28, Those personsparticipating in the discussion w ere: TW ELFTH W A R D SA VE O U R C O M M UN ITY O R G A N IZA TIO N,IN C M s.sharon D elong M r.charlesf.w ebb,cpa Executive D irector A ccountant B R UN O & T ER V A L O N L L P.C E R T IFIE D PU B L IC A C C O U N TA N T S M r.m ichaelb.bruno,c PA -- Engagem ent/m anaging Partner M r.joseph A.Akanji,CPA -- EngagementM anager 22