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1 TtI.E CO~. ~opy s.nd PU :CE BAC~ ;n Fltl:) A V O Y ELLES SO C IETY FO R TH E D EV ELO PM ENTA LLY D ISA B LED,INC. FINA N C IA L STA TEM ENTS Underprovisid~ I~ ~~,~8this report is a public docum ent copy ofth A. e reporthas bee:,st~bm itted to the audited, entit or reviewed, y and otherappropriate public officials. The reportis ~vailable f public nspection or Rouge at the E,a,on ~'' tor office ofihe ḻec':]~lz,tive Audi- and,w here appfop~iat~ ofice ofth ~ttile e p~:ri.%h Cl~r~.'~,-, 01"court. Release DP,t~ /.I."t,~ D ucote & C om pan y C ertifi ed Public A ccountants P.o.Box N orth W ashington Street M arksville,la 71351

2 AVO YELLES SO CIETY FO R THE DEVELO PM ENTALLY DISABLED,INC TA BLE O F CO NTENTS Page No. INDEPENDENT AUDITO RS'REPO RT REPO RT O N CO M PLIANCE A ND O N INTERNAL CO NTRO L STRUCTURE O V ER FINA NCIA L REPO RTING BA SED O N AN A UDIT O F FINA NCIAL STATEM ENTS PERFORM ED IN ACCO RDA NCE W ITH G OVERNM ENT AUDITING STANDA RDS STATEM ENT O F FINA NCIA L PO SITIO N STATEM ENT O F A CTIVITIES STATEM ENT O F CASH FLOW NOTES TO FINANCIAL STATEM ENTS

3 Aloysia C.Ducote,CPA,PC Joan S.D ucote,cpa,pc NDEPENDENT AUDITO RS'REPO RT To the Board ofdirectors Avoye les Society forthe Developm enta ly Disabled,Inc M arksvile.louisiana W e have audited the accom panying statem ent of financial position of the Avoye les Society for the Developmentaly Disabled,Inc.(a nonprofitorganization)as ofjune 30,1998,and the related statements of activities and cash flows forthe yearthen ended.these financialstatem ents are the responsibility ofthe O rganization's m anagem ent.o urresponsibility is to express an opinion on these financialstatem ents based on ouraudit. W e conducted ourauditin accordance with generaly accepted auditing standards,g overnm entauditing Standards,issued by the Com ptro lerg eneralofthe Untied States. Those standards require thatwe plan and perform the auditto obtain reasonable assurance aboutw hetherthe financialstatem ents are free of m aterialm isstatem ent. An auditincludes exam ining,on a testbasis,evidence supporting the am ounts and disclosures in the financialstatem ents.an auditalso includes assessing the accounting principles used and significant estim ates m ade by m anagem ent, as wel as evaluating the overa l financial statem ent presentation. W e believe thatourauditprovides a reasonable basis forouropinion. In ouropinion,the financialstatem ents referred to above presentfaidy,in a lm aterialrespects,the financial position of the Avoyelles Society for the Developm enta ly Disabled,Inc.as of June 30, 1998,and the changes in its netassets and cash flows for the year then ended in conform ity w ith genera ly accepted accounting principles. In accordance with Govern mentauditing Standards,we have also issued a reportdated October19,1998 on ourconsideration ofavoye les Society ofthe Developm entaly Disabled,Inc.'s intern alcontrolstructure and its com pliance w ith law s and regulations. M arksvile,louisiana O ctober American Instituteof ~ Members ~ Society of Louisiana Certified PublicAccountants Certified PublicAccountants 219 NorthWashington *PostOficeBox309*Marksvile,Louisiana71351*(318) *Fax(318)

4 D AloysiaC.Dueote,CPA,PC JoanS.Ducote.CPA.PC REPO RT O N CO M PLIANCE AND O N INTERNA L CO NTROL STRUCTURE OVER FINA NCIAL REPO RTING BASED O N AN AUDIT O F FINANCIAL STATEM ENTS PERFO RM ED IN A CCO RDANCE W ITH G OVERNM ENT A UDITING STANDA RDS Board ofdirectors Avoye les Society forthe D evelopm enta ly D isabled,inc. M arksvile.louisiana w e have audited the statem ent of financialposition of the Avoyeles Society for the Developm entaly Disabled,Inc.(a nonprofitorganization)asofjune 30,1998,and the related statementsofactivitiesand cash flows for the yearthen ended,and have issued our reportthereon dated O ctober 19, W e conducted ourauditin accordance w ith genera ly accepted auditing standards and the standards applicable to financialaudits contained in Governm entauditing Standards,issued by the Com ptrolergeneralofthe United States. Com pliance As partofobtaining reasonable assurance aboutwhetherthe Avoyeles Society forthe Developmentaly Disabled,Inc.'s financialstatem ents are free ofm aterialm isstatem ent,we perform ed tests ofits com pliance with certain provisions oflaws,regulations,contracts and grants,noncom pliance w ith which could have a directend m aterialefecton the determ ination offinancialstatem entam ounts. However,providing an opinion on compliance with those provisions was notan objective ofourauditand,accordingly,we do not express such an opinion. The results ofourtests disclosed no instances ofnoncom pliance thatare required to be reported underg overnm entauditing Standards. InternalControlover FinancialReporting In planning and perform ing ouraudit,we co nsidered the Avoyeles Society forthe Developmentaly Disabled, Inc.'s internalcontroloverfinancialreporting in orderto determ ine ourauditing procedures forthe purpose of expressing ouropinion on the generalpurpose financialstatem ents and notto provide assurance on the internalcontroloverfinancialreporting. O urco nsideration ofthe internalcontroloverfinancialreporting w ould notnecessarily disclose a lm atters in the intern alcontroloverfinancialreporting thatm ightbe m aterial weaknesses. A m aterialweakness is a co ndition in w hich the design oroperation ofone orm ore ofthe internalcontrolcom ponents does notreduce to a relatively low levelthe risk thatm isstatem ents in am ounts thatwould be m aterialin relation to the generalpurpose financialstatem ents being audited m ay occurand notbe detected w ithin a tim ely period by em ployees in the norm alco urse of perform ing theirassigned functions. W e noted no m a ters involving the internalcontroloverfinancialreporting and its operation that we co nsiderto be m aterialweaknesses. This report is intended for the inform ation of m anagem ent end the Legislative Auditor of the State of aterofpublic record and its distribution is not lim ited. M arksville,louisiana O ctober ~ M em bers ~ American Institute of Certified PublicAccountants 219 NorthWashington~PostOfi cebox309 ~Marksvilt,Louisiana71351*(318) *Fax(318) Society of Louisiana Certified PublicAccountants

5 AVOYELLES SOCIETY FOR THE DEVELO PM ENTA LLY DISA BLED,INC. Statem entoffinancialposition June 30,1998 A SSETS C urrentassets: Cash and interest-bearing accounts Accounts receivable -grants Deposits Totalcurrentassets Fixed A ssets: Furniture and fixtures M achinery and equipm ent Transportation equipm ent Less accum ulated depreciation Netfixed assets Totalassets $13,755 14,840 5,000 33,595 6,072 22,777 24,728 53,577 (40,066) 13,511 $47,106 LIA BILITIES A ND NET A SSETS CurrentLiabilifies: Accounts payable Accrued expenses NetAssets Totalcurrentliabilities Totalliabilities Totalliabilities and netassets $ 1, ,616 2,616 44,490 $4 7,106 See accom panying notes to financialstatem ents

6 AVOYELLES SO CIETY FO R THE DEVELO PM ENTALLY DISABLED,INC Statem entofactivities Yearended June 30,1998 Unrestricted NetAssets: Support: Dues and donations Interestearned Clientservice G rants Fundraiserincom e G ain on sale ofassets In-kind revenue M isce laneous revenue Totalsupport $ 2, , ,564 4,634 3,500 1,340 3, ,709 Expenses: Program serv ices: Adultday services Clientserv ice activities In-kind expenditures Totalprogram serv ices ncrease (decrease)in unrestricted netassets Netassets,beginning ofyear Netassets,end ofyear 207,533 61,351 1, ,224 2,485 42,005 $ 44,490 See accom panying notes to financialstatem ents.

7 AVOYELLES SOCIETY FO R THE DEVELO PM ENTALLY DISABLED,INC Statem entofcash Flow s YearEnded June 30,1998 CASH FLOW S FRO M O PERATING ACTIVITIES: Decrease in netassets Adjustmentsto reconcile changes in netassetsto netcash provided by operating activities: Depreciation G ain on sale ofequipm ent (Increase)decrease in operating assets: Deposits Accounts receivable Increase (decrease)in operating liabilities Accounts payable Accrued expenses NET CASH PROVIDED BY O PERATING ACTIVITIES CASH FLOW S FRO M INVESTING ACTIVITIES Sale ofproperty & equipm ent Paym ents forpurchases ofproperty and equipm ent NET CASH FLOW S FRO M INVESTING ACTIVITIES CASH FLOW S FRO M FINANCING ACTIVITIES Decrease in short-term notes payable NET CA SH PROV IDED BY FINA NC ING A CTIVITIES NET INCREASE (DECREASE) IN CASH AND CASH EQ UIVALENTS BEG INNING CASH A ND CASH EQ UIVALENTS ENDING CASH A ND CASH EQ UIVALENTS $ 2,485 7,158 (3,500) 3, (204) ,500 (8,176) (~ 4,676) _.~ ~ (3,005) ~ (3,005) 1,622 12,133 $ See accom panying notes to financialstatem ents

8 AVOYELLES SO CIETY FO R TH E DEVELO PM ENTA LLY DISA BLED,INC. Notes to FinancialStatem ents June 30,1998 NO TE A -SUM M A RY O F SIG NIFICA NT A CCO UNTING PO LICIES O rganization The Avoyerles Society forthe Developm enta ly Disabled,Inc.is a nonprofitorganization exem ptfrom incom e tax undersection 501(c)(3)ofthe United StatesInternalRevenue Code.The Society was formed in 1968 to provide day services forand assistance to the adulthandicapped residents ofavoye les Parish,Louisiana. The Society participates as a provider agency in the Departm ent of Health & Hospitars Title XX Day D evelopm entaltraining serv ices. Basis ofacco untinq The Society m aintains its accounting records on the accrualm ethod ofaccounting,exceptthatm em bership dues and donations are included in supportin the period received. Fixed A ssets Fixed assets are recorded atcost. Assets straight-line m ethod,using the fo low ing lives: Furniture & fixtures M achinery & equipm ent Vans are depreciated overtheir estim ated usefullives using the 3-5 years 5-8 years 4 years Donated Serv ices Donated laboris valued atthe m inim um w age rate in efectatthe tim e ofthe donated services. Professiona time which is donated is valued atthe currentmarketrate ofthe specific project. Cash and cash equivalents Forpurposes ofthe statem entofcash flows,the Society considers a lunrestricted,highly liquid investm ents w ith an initialm aturity ofless than three m onths as cash and cash equivalents.

9 AVOYELLES SO CIETY FO R THE DEVELO PM ENTALLY DISABLED,INC Notes to FinancialStatem ents (continued) June 30,1998 NO TE B -G RA NTS The Society participated in five grants forthe yearended June 30,1998,tw o ofw hich were non-cash in nature: Cash G rants: Federal/State Grant-M edicalassistance Program M R/DD W aiverservices Federal/State G rant-rehabilitation Program State oflouisiana G rant-departm entofhealth and Hospitals Title XX AdultDay Program s TotalG rants Received Non-cash G rants: ProjectIndependence Federal/State - FederalUrban M ass Transportation C apitalim provem entg rant TotalNon-cash grants received $ 11,520 2, ,644 $213,437 $ 68 19,078 $ 19,146 NOTE C -FIXED A SSETS A sum m ary offixed assets is as folows Balance Balance June Additions Retirem ents June Furniture & fixtures M achinery & equipm ent Transportation equipm ent Accum ulated Depreciation Netfixed assets $ 6,072 22,777 20,800 $49,649 (37,156) $12,493 $ 6,072 22,777 24, (40,066) $13,511

LEGISLATW E AUDITOR BATON ROUGE LA 70104 DATA CO LLECTIO N FO RM FO R REPO RTING ON AUDITS OF STATE AND LOCAL GOVERNM ENT AND QUASIPUBLIC EN ii!

10 LEGISLATW E AUDITOR BATON ROUGE LA DATA CO LLECTIO N FO RM FO R REPO RTING ON AUDITS OF STATE AND LOCAL GOVERNM ENT AND QUASIPUBLIC EN ii!it:~ OM B F~-m may be used es a subsltute forthls RETURN t~ Leg~lative ~ form. A~ F.ng~ em~ Pnx~m ~ " DttoF~tm~tad 12.._. / 15 / 8 9 Poa ~files Box _.. Baton Rou~e.Loulsiana Fbcmlyes rending D~te ForTI I~ Su~ ni~,ion: 2.Type ofrepore ~ _6 /30/ 98 m Sln~e ~ud# X~ OAO AuatStandards ^Odor 3.AuditPerlod Covered o ~ o ~ A~ on, 0 I~ ognm~auo~ O Other r"l Other to 4.AUDITEE INFORMATION 5.AUDITOR INFORMATION A,_ -i~ _' Nam * e ~ Ntm~ AVOYELLES SOCIETY FOR THE DEVELOPMENTALLY DISABLED. INC DUCOTE & COMPA~, CPA 'S COTTAGE STREET b 21~ NWASHI~GTON u erands~e~) ST P. O. BOX 220 IVla~ngAddress(PO No.) p O~ 'e~ (PO No.) MAR~ VILLE ~ 7135~ MAI~I~RVTỊ em~ ~ I.~K _ T.A z~ 7 1~ 51 Atm~tm Cont~ Atm~tm ~ Name ~t~ Name ALOYSIA C DUC~ PARTNER SANDRA KNIGHT EX. DIRECTOR Telephone Fax 3~ 55 NONE E ( duc o ~ kricket,com ~ Unl~ I,-'~ -~ VVIlln Um RelpOltmid forvvhl~h No Sep~ l~ Relx~ ~W~IBe blsued: ofnonc~n~ anoe,mid no m es aoermmtletter,cheok tns bo0c do nolc~t~;~te the re stof the from. 6.FINANCIAL STATEM ENTS ~.'Ty~ ofaudltmom ton nnam clalxt=tmmn~. [3 Not O Unqu~ dc ~.~-'-~ O Oua~ edo p~ on [] Adw nm Op~ on O Dis~a~w ofop~ on b.ism'golngoonoem'~,~,,~-~,my~ In~ -J,~ lntheaud#n~. O Yes O No c.do sny ofthe funds have defic~ fund l~ ances? d.is~ m x~ arlyfootnote? O Yes [] Yes [] No [] No 7.INTERNAL CONTROL u 8.COM PLIANCE g.ma NA GEMENT LETTER (Roe,rig ~ and No.) Resolved [] Yes [] No [] No l.oc~gerap,pl~ Jde Resolved [] Yes [] No [] NoLoog~ Resolw d [] Y~ [] No [] No Lono~rAnoli~ 10.SCHEDULE OF CURRENT YEAR FINDINGS/QUESTIONED COSTS (~ CapOon and No.) $.~ Resolved YN [] No NoLonger~ $.~ Resolved ~ Ye~ [] NO D No LongerAp~ $ Res oh~ed O Ye~ O NO [] NoLongef~ $.~ Resolved [] Yes [] NO [] No LongerA~ h~_. $ Resolved O Ye~ O No D Nol-~ gerappioabm $ Resolved [] Yas [] No [] No I~ Am~ e~h~ Do any findings lkidm es nepot~m,ethtcs~ orrelatedpartytm nsact~ons? [] Yes [] No Do anyflndinosadd~essvlol~ionofbond lndentum covenants? [] Yes O No 11.SCHEDULE OF PRIOR YEAR FINDINGS/QUESTIONED COSTS (Finding Caption and No.) Resolved [] Yes [] NO [] Nol.,oc~er~ Resolved [] Yes O No O NoLonger~ Resolved rl Yes 0 NO [] NoLonge~ Resolved [] Yes [] No r'l No LongerARolicab~ LOUtS4ANA GO~IERNMEIq~AL AUDIT OUI~E~

11 FO R USE BY LEG ISLA TIV E A U DITO R Date ReportReceived: L~ Audit~ Council: Boord ofethics: Are them unn~ lved ~ di~ = l=ted ~ Am there fa~ g= of~dm k~ lets? Are there ~ no= ofeth~,nepou=m,or,=~ parues? Are the~ any finda~= relat~ to ~ latio~ ofbond Indentures? Does the e~ ty have a deficitgc~ terthan 5% ofrevenue? Ifso,ident~ tm ~ ~'(s)no(s). Am there any significantfindings? Yes orno Ye= orno Ye~ orno Ye= o~ No Yeo or No Yes orno Yes orno m. Rank A B C D (A=No Comments;B~-Manageme~ LetterC.omme~~ Only;,~ C~ q~,~ Repots)~ ;D=Crimtnal/Fraud Acts) Note:Forgrading Ixaposm,sch,~ a~_ofknnuderkd _ findings am Veated as a managem enti~tor GOVERNMB ~ AL AUDIT GUIDE RiNiseci1/11i0~ P^~E 110

12 AVOYELLES SO CIETY FO R THE DEVELO PM ENTALLY DISA BLED,INC Notes to FinancialStatem ents (continued) June 30,1998 NO TE D -G RA NTS RECEIVA BLE G rants and contracts receivable are deem ed to be fuly co lectible by m anagem entand are com prised ofthe fo low ing am ounts due atjune 30,1998: DeptofHealth & Hospitals -M R/DD W aiverservices DeptofHealth & Hospitals -AdultDay Program $ 2,121 12,719 $ 14,840 NOTE E - CO M M ITM ENTS A ND CO NTING ENCIES On May 14,1998,the Society entered into an irrevocable leterofcreditfor$6,200.00,which expires on May 14,1999.The purpose ofthe letterofcreditis to obligate a source offunds forthe required 20% localm atch fora FederalUrban M ass Transportation CapitalIm provem entg rantapplication. O n M arch 17,1998,the Society entered into a buy-se lagreem entto purchase a building and the property on which itis located in Marksvile,Louisiana for$175,000.a nonrefundable depositof$5,000 was given to the Se lers,w hich w ilbe applied to the purchase price atthe closing ofthe transaction. The option to purchase the realestate m ustbe exercised by the end ofdecem ber1998. A three-phase plan has been developed forthe purchase and renovation ofthe building.the Society plans to m ove its currentfacility and operations to the new site afterthe com pletion ofphases Iand II. This w il a low the Society to increase the num berofclients serv ed and clientactivities. To provide funding forthe project,the Society has applied to severalsourcesforcapitaloutlay and/ordebt service funding.the Society is presently awaiting finalapprovalon some ofthe requests. 8

13 AVOYELLES SO CIETY FO R THE DEVELO PM ENTALLY DISABLED,INC Notes to FinancialStatem ents (continued) June 30,1998 NOTE G - YEA R 2000 RESO LUTION The stages identified by the G overnm entalaccounting Standards Board as being necessary to im plem ent a year 2000-com pliant system are: Awareness Stage,Assessm ent Stage, Rem ediation Stage,and Validation/Testing Stage. The Society is currently in the Rem ediation Stage ofthe im plem entation ofa Year2000 com pliantsystem The Society does notuse com puters forany financialfunctions. The accounting system is com pletely manual. Computers are used to maintain clientfiles with respectto seting goals,objectives and annual and sem i-annualassessm ents foreach client.a basic word processing softw are package is used forthis. The progress to date by the Society w ith regards to Y2000 com pliance is: Awareness Stage: The Society owns 2 com puters and is aware ofthe factthatneitheris Y2000 ready Assessm entstage: The Society has assessed costs and determ ined itto be m ore feasible to discard its tw o old com puters and purchase new hardware and software. Rem ediation Stage: The Society is currently pursuing grants and donations from com panies to acquire new com puters and softw are w hich are Year2000 com pliant. The Society plans to acquire one by July 1999 and anotherby Septem ber1999. How ever,ifitis notfinancially possible to acquire tw o com puters, the Society plans to use only one com puter.

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