Underprovisior~s ofstate law,this reportis a public docum ent.a copy ofthe reporthas been subm itted to

Transcription

1 Jef DavisCouncilon Aging JENN IN G S,LOU ISIAN A A NN UAL FINA NC IAL R EPO RT Forthe Year Ended June 30,2000 Underprovisior~s ofstate law,this reportis a public docum ent.a copy ofthe reporthas been subm itted to the entity and olherappropriate public officials.the ~eporl is available forpublic inspection atthe Baton P,ouge office oftl~e Leqisl~tive Auditorand,w here appropriate,atthe ofice ofthe parish clerk ofcourt. Release Date _~ -J~)q-OI _

2 JEFFERSON DAVIS COUNCIL ON AGING,INC. JENNINGS,LOUISIANA TABLE OF CONTENTS June 30,2000 Paae Num ber INDEPENDENT AUDITO R'S REPORT t OTHER REPORTS: Reporton Com pliance and on InternalControlover FinancialBased on as AuditofFinancialStatements perform ed ~n acc;ordence with Govern m ent Auditing Standards ReportofC:ornpliance with Requirements Applicable to each MajorProgram and InternalControloverCompliance inaccordanc~twith OM B Circu/arA-133 GENERAL PURPOSE FINANCIAL STATEM ENTS Combined balance sheet-alfund types and account group(s) Com bined =;taternentofrevenues,expenditures and changesin fund balance s (deficit)algovernmental fund types 5-6 Statementofrevenues,expendituresand changesin fund balance (deficit)budget(gaap)basisand actualgeneralfuhd type Statem entofrevenues,expenditures,and changesin fund balance (GAAP)basis and actualspecialrevi~nue funds Notes to financialstatem ents SUPPLEM ENTARY FINANCIAL INFORMATION: Schedule t-schedule ofprogram Revenues and Expenditures end Changes in Fund Balance -generalfund Schedule 2 -Schedule ofrevenues,expenditures,and Changes in Fund Ba~arlce -specialrevenue funds Schedule 3 -Schedule ofprogram Expenditures -Budget vs Actual~Contractand G rantspro vided Through the Louisiana Governor'sO fice ofelderlyafairs(goea) Schedule 4 -Schedule ofpriority Services -Title IPart B - Grantforsupportive service s Schedule 5 -Cornparative Schedule ofgeneralfixed and Changes in GeneralFixed Assets Schedule 6 -Schedule ofexpenditure s offederalfinancialawards Schedule o~findings and Questions Costs Corrective action taken on priorauditfindings Exitconfel~nc~ Schedule ol'board M em bers Com pensation

3 G ~e~.rlo E~ r~. C ertified Public A ccountant 310 Beauregard Sulphur,Louisiana Tel.(337) Fax (337) IndependentAuditor's Report Board ofdirectors Jef Davis Councilon Aging Jennings,Louisiana Ihave audited the aco:,mpanying generalpurpose financialstatements ofjef Davis Councilon Aging (a nonprofitorganization)asof June 30,2000,and farthe yearthen ended.these financialstatementsare the responsibility ofthe Jef Davis Councilon Aging's management.my re sponsibility is to express an opinion on these financialstatements based on my audit. Iconducted my auditirlaccordance with generaly accepted auditing standards and the standards applicable to financialaudits contained in Governm entauditing Standards,issued by the com ptrolergeneralofthe United States.Those standards require thatiplan and perform the auditto obtain reasonable assurance aboutwhetherthe financialstatem ents are free ofm aterialm isstatement.an audit includes examining,or,a testbasis,evidence supporting the am ounts and disclosures in the financialstatem ents.an audit also includes assessing the accounting principles used and the significantestimates m ade by m anagement,as welas evaluating the overalfinancial statem entpresentation. Ibelieve thatm y auditprovides a reasonable basis form y opinion. In m y opinion,the generalpurp ose financialstatem ents referred to above presentfairly,in alm aterialrespects,the financialposition of Jef Davis Councilon Aging and as ofjune 30,2000,and the changes in its fund balance forthe yearthen ended in conform ity with standards established by the G overnor's O fice ofelderly Afairs. Inaccordance with Go/ern rn entauditing Standard s,ihave also issued my report dated Spe tember29,2000,on my co nsideration ofjef DavisCouncilon Aging,'s internalcontroloverfinancialreporting and my testsofits co m pliance with certain provisions oflaws,regulations, co ntracts and grants The accompanying schedule ofexpenditures offederalawards is presented forpurposes ofadditionalanalysis as required by U.S.Ofice ofm anagementand [:ludgetcirculara-133,audits of States,Loca/Govern m ents,and Non-ProfitOrganizations,and is nota re quired partofthe basic financialstatements,the supplementary schedules required by the Govern or's Ofice ofeldedy Afairs is presented for additionalanaylysisbythatofice.suchinformationhasbeensubjected to the auditingproceduresapplied inthe auditofthebasic financialstatements and,in my opinion,is fairly stated,in alm aterialre spects,in re lation to the basic financialstatements taken as a whole. Because statementsp,'esented on a basis established by the Governor's Ofice ofeldedy Afairs require the presentation offund types and accountgroups,the inform ation in the totalm em orandum -only co lum n is notintended to presentfinancialposition and results of operationsofthe JefDavisCouncilon Aging,Inc.,Jennings,Louisiana,in co nformity with generaly accepted accounting princiles; however,in m y opinion itis fairly stated in a lm aterialrespects in relation to the financialstatem ents from which ithas been derived.

4 G ~v_rto.e~ /: Certified Public A ccountant 310 Beauregard Sulphur,Louisiana Tel.(318) Fax (318) REPO RT ON COMPLIANCE AND ON INTERNAL CONTRO L OVER FINANCIAL REPORTING BASED O N AN AUDIT OF FINANCIAL STATEMENTS PERFORM ED IN ACCORDANCE W ITH GOVERNM ENT AUDITING STANDARDS Board ofdirectors Jef DavisCouncilon Aging Jennings,Louisiana Ihave audited the financialstatements ofjef Davis CouncilonAging (a nonprofitorganization)as ofand forthe yearended June 30, 2000,and have issued m y reportthereon dated September29,2000. Iconducted m y auditin accordance with generaly accepted auditing standards and the standards applicable to financialaudits contained in Govern m entauditing Standards,issued by the ComptrolerGeneralofthe United States. Comeliance As partofobtaining reasonable assurance aboutwhetherjef Davis Councilon Aging's financialstatements are free ofm aterial misstatement,iperform'ned testofits com pliance with certain provision oflaws,regulations,contracts,and grants,nonco mpliance with which could have a di+ectand m aterialefect on the determ ination offinancialstatem entam ounts. However,providing an opinion on co mpliancewiththose provisions wasnotanobjective ofmyaudit,and acco rdingly,ido notexpresssuch an opinion.the resultsof my testsdisclosed no instances ofnoncom pliance thatare required to be reported undergovernm entauditing Standards. In planning and pertom ~ing m y audit,iconsidered Jef Davis Councilon Aging*s internalcontroloverfinancialreporting in orderto determine my auditing procedures forthe purpose ofexpressing m y opinion on the financialstatem ents and notto provide assurance on the internalcontroloverfinancialreporting. My co nsideration ofthe internalcontroloverfinancialreporting would notnecessarily disclose almaters in the intern alco ntroloverfinancialreporting thatm ightbe m aterialweaknesses.a m aterialweakness is a condition in which the design oroperation ofone orm ore ofthe internalcontrolcom ponents does notreduce to a relatively low levelthe risk that m isstatements in am ojnts thatwould be m aterialin relation to the financialstatem ents being audited m ay occurand notbe detected withina timelyperiod hy em ployees in the norm alcourse ofpe rform ing theirassigned functions.inoted no m aters involving the intern al controloverfinancialreporting and its operation thatico nsiderto be m aterialweaknesses. This report isintended forthe inform ation ofthe auditco m mitee,m anagement,and federalawarding agencies and pass-throughentities. However,this report i:~a m aterofpublic reco rd and its distribution is notlim ited. -J * =1 September29,2000

5 Tel.(318) Board ofdirectors Jef Davis Councilon Aging Jennings, Louisiana C ertified Public A ccountant 310 Beauregard Sulphur,Louisiana REPO RT O N CO M PLIA NCE W ITH REQ UIREM ENTS APPLICA BLE TO EACH MAJO R PRO G RA M AND INTERNA L CO NTRO L O VER CO M PLIA NCE IN ACCO RDA NCE W ITH O M B CIRCULA R Fax (318) Com oliance Ihave audited thecompliance ofjef Davis CouncJIon Aging with the typesofcompliance requirements described in the U.S.Office of managementand/:tuo'cjet(omb)circu/ara-133 Compfianca Supplementthatare applicable to eachofitsmajorfederalprogramsfor the yearended June 30,2000.Jef Davis Councilon Aging's majorfed eralprogramsare identified in the summary ofauditors results section ofthe acco m panying sched ule offindings and questioned costs.com pliance with the requirements oflaws,regulations,contracts and grantsapplicabletoeachofitsmajorfederalprogramsisthe responsibility ofjef DavisCouncilonAging'smanagement.My re sponsibility isto e):pressartopinion on Jef Davis Councilon Aging's com pliance based on m y audit. Ico nducted my auditofco m pliance in accordance with generaly accepted auditing standards,the standards applicable to financialaudits co ntained ingovernm sntauditing Standards,issued by the Comptro lergeneralofthe United States;and OM B CircularA-133,Audits ofstates,loca/gow~m ments,and Non-ProfitOrganizations.Those standardsand OM B CircularA-133 re quire thatiplan and perform the auditto obtain re asonable assurance aboutwhethernonco m pliance with the type s ofco m pliance requirem ents refe red to above that could haveadirectand matedalefectonmajorfederalprogram occurred.anauditincludesexamining,onatestbasis,evidence about Jef Davis Councilon Aging's co mpliance with those re quire ments and perform ing such otherprocedures as Ico nsidered necessary in the circumstance s.ibelieve thatmy auditprovides a re asonable basis formy opinion.m y auditdca s notprovide a legaldeterm ination ofjef Davis Councilon Aging'scom pliance with those re quirements. In my opinion,jef Davis Councilon Aging co mplied,in alm atedalrespects,with the requirements referred to above thatare applicable to each ofits majorfederalprograms forthe yearended June 30,1997. The m anagementofjef Davis Councilon Aging is responsible forestablishing and maintaining efective intern alco ntroloverco mpliance with requirements oflaws,regulations,contracts and grants applicable to federalprogram s. In planning and perform m y audit,i considered Jef DavisCouncilon Aging's intern alcontrolovercom pliance with requirem ents thatco uld have a directand m aterialefect on a majorfed eralprckjram in orderto determine my auditing proce dures forthe purpose ofexpressing my opinion on compliance and to testand reporton internalcontrolovercom pliance in accordance w ith OM B CircularA-133. My co nsiderationofthe irltemalco ntroloverco mpliance would notnecessarilydisclose aljm aters inthe internalcontrolthatm ightbe re aterialweaknesses A m aterialweakness is a co ndition in which the design oroperation ofone orm ere ofthe internalco ntrol com ponents does notreduce to a relatively low leverthatrisk thatnoncom pliance w ith applica ble requirem ents oflaws,regulatons, contractsandgrantsthatwould be materialinrelationto amajorfederalprogram beingaudited mayoccurandnotbe detected within a tim ely period by em ptoyees in the norm alco urse ofpe rform ing theirassigned functions.inoted no m aters involving the intern alcontrol overco m pliance and its operation thatico nsiderto be m aterialweaknesses. Thisreport is intend~ lforthe inform ationofthe auditcomm itee,m anagem entand federalawarding agencies and pass-thre ugh entities. However,this reporti~,a m aterofpublic record and its distribution is notlim ited. Septem ber29.200~ ~ ~

6 ~j~t fd i~ ~ ~J ~ d i i i! l! i i i cd i ~,D I c~i~ 1

7 CO M BIN ED STA TEM ENT O F R EV EN UES,EX PENDITURES A N D C HA N G ES IN FUND BALANCES (DEFICIT)-ALL GOVE'RNM ENTAL FUND TYPES Jeferson Davis Voluntary C ouncilon A ging,inc Jennings,Louisiana F:or the year ended June 30,2000 W ith Com parative Totals forthe Year Ended 30,1999 REVENUES Intergovarnm ental United W ay LocalSupport Program Income ClientContributions Head StartoIn Kind Interest Genera Totals Special (Memorandum Only) _ Revenue _ _ 99 77, ,961 3O.00O ,339,697 8, , ,000 29,091 1,339,697 8, ,616,113 28,000 71,500 23, , TotalRevenue 1 = =. 4 1,931~6 = 31 2,068,43 _ 5 1,900,273 E~ ENDJTURE Salaries 927, , ,550 Fringe 228, , ,773 Travel 72 23,597 23,669 26,110 Operating Services 11, , , ,443 Operating Supplies , ,203 95,399 Head Start.In Kind 344, ,655 LegalServices 6,720 6,720 6,720 M eals ,448 Emergency Food & Shelter 12,681 ProjectCare 4,525 TotalExpenditur~,s _ 11,601 _ 2,283, ,313,530 2,729,673 Excess (Deficiency)ofRevenues overexpenditures 125,203. (351~578) ~226,375). _(829,40 )

8 ExhibitB (Continued) General Special Revenue Totals (Memorandum 2000 OTHEREINANCING.SQURGES {U~ ';SJ Operating Transfers in 205, ,204 Operating TransfersOut ~ 147,332~_.(5=1:556) (198,888~ Only) 1999 Excess(deficient;y)ofrevenues and othersource s ovel"expenditures and otheruses (22.t29) (197,930) (220,059) (829,400) EUND~ ALANGES Beginning,as restated g~,~ _ 20~,09 ~ 229,446 1,054,548 End ofyear The accom panying notes are an integralpartofthese statem ents 6

9 Ex hihit C STA TEM ENT O F REV E NUES,EX PENDITUR ES A ND C HA N G ES IN FUND BALANCE (DEFICIT)BUDGET (GAAP)BASIS VS A CTUA L -G EN ERA L FU ND Jef erson Davis Voluntary Councilon A ging,inc Forthe yearended June 30,2000 Variance - Favorable Unfavorable REVENUES Intergovernm enta United W ay LocalSupport 77,713 77,713 30,000 30,000 29,~9~ 29,091 TotalRevenue 136,~ EXPENDITURES Salaries Fringe Travel Operating Services Operating Supplies 72 11, TotalExpenditures 11,601 Excess(Deficiency)ofRevenues overexpenditures 125, ,203 OTH ERJ=JNANCING SOURCES (USES) Operating Transfers O ut (!47,33~) Excess(Deficiency)ofRevenues OtherSource s OverEb:penditures and OtherUses (22,129) FUND BALA NCES Beginning ofyear 28,555 End ofyear ~ 20 The accom panying notes are an integralpartofthese statem ents 7

10 STA T EM ENT O F R EV ENU ES,EXPEN DITU RES A ND C HA N G ES IN FUND BALANCE (GAAP BASIS)AND ACTUAL SP EC IA L R EVE N U E FU N D Jef erson Davis Voluntary C ouncilon A ging,inc Jennlngs,Louisiana For the yeare nded Ju ne 30,200 0 Actual Variance- Favorable Unfavorable REVENUES Intergovernmental 260, , Pr~ lrarn Income 1,339,697 1,339,697 ClientContributions 8, Head Start4n Kind TotalRevenue 1,952,779 21,148 EXPENDITJJRE Salaries 938, , Fringe (33.027) Travel ,597 1,276 Operating Services 482, ,802 8,629 Operating Supplies 130, ,760 6,346 Head Start-In Kind 344, ,478 LegalService s 7, M eals TotalExpenditures ~,296.3E7 ~ 2~8~,~0.9 13,168 Exce ss (Deficiency)ofRevenues overexpenditures ~351,578) OTH Operating Transfers in Operating Transfers out (USES) 205,204 (51,558) Exce ss(deficiency)ofrevenues OtherSources OverExpenditures and OtherUses 197,930) FUND_BALAHCE~ Beginning Fund Balance,as restated End ofyear 200,891 The accom panying notes are an integralpartofthese statem ents 8

11 NOTES TO FINA NCIAL STA TEM ENTS Jeferson Davis Councilon A ging,inc. Jennings,Louisiana June 30,2000 Note 1- Sum m ar~fofsignificantaccounting Policies A. Reporting Entity In 1964.the State oflouls~na passed Act456 thatauthorized the charterofvojuntary CounciLson Aging forthe welfare ofthe aging people intheirrespective parishes.charters are issued by the Louisiana Secretary ofstate upon approvalby the Govern or'sofice of Eldedy Afairs.The Jeferson Davis Councilon Aging,Inc.isa nonprofitcorp oration thatm ustcom ply with the policiesand regulations sstsblished by the Govern or's O fice ofeldedy Afairs,the state Centerthatprovidesthe Councilwith som e ofits revenues.the CO uncil also rece ives revenu~,s from otherfederal,state,and localgovernmentagencies thatm ay im pose certain re strictions upon how the Councilca n use the m oney thatthey have provided. The councilis nota componentunit ofanotherprimary governmentnordoes it have any com ponentunits thatare related to it.th erefore, the Councilhaspresented its financialstatem ents as a separate special-purpose governm ent. Th e primary function otthe Jeferson Davis Councilon Aging.Inc.is to improve the quality oflife forthe parish's erderly and to provide service s to the elded y and coordinate and m onitorthe services ofotherlocalagencies serving the aging people ofthe parish. Such services include providing m eals,nutritionaleduca tion, inform ation and referralservice s,operating seniorce nters,and transportation, A Board ofdirectors,consisting of15 voluntary mem bers who serve three-yearterm s,govern s the Councit. B. Presentation ofstatem ents InAprilof1984,the FirlarlclarAccountingFoundationestablished the GovernmentalAccounting StandardsBoard (GASB)to promulgate genera ly accepted accounting principles and reporting standards with re spect to act ivities and transactions ofstate and local governmentalentities. In Novem berof1984,the GASB issued a CO difica tion ofgovern m entalaccounting and financialreporting standards.thisco difica tion and subsequentgasb pro nounce ments are recognized as generaly accepted accounting pdno~plesforstate and localgovernm ent!;. The accompanying financialstatements co nform to generaly accepted accounting principles forstate and localgoverm'nents. These stateme nts have also incorporated any applicable require mentsetforth by Audits ofstate and LocalGovernm entalunits,the industry auditguide issued by the Aro edce n/nstitute ofcertified Pub/icAcco untsnts'subsection Vl-AnnualFinancialReporting,accounting manual forgovernor's Ofice ofelderly contractors ;and,the Louisiana Governm entalauditguide. C. Fund AccoiJnttng The accounts ofthe Councilare organized based on funds and accountgroups, each ofwhich is CO nsidered a separate accounting entity. The operations ofeach fu nd are accounted forwith a separate setofself-balancing accounts thatco mprise its assets, liabilities,equity, revenues,and expendilures,orexpenses,as appropriate. Resources are aloca ted to and accounted forindividualfunds based upon the purpose forwhich they are to he spentand the means by which they are to be spentand the m eans by which spending activities are controled.the various funds are grouped,in the financialstatements in this report,into tw o generic fund types and two broad fund ca tegories(accountgroups). The govern m entalfunds and the pro gram COm prising them as presented in the financialstatem ents are described as folows: 1. G~neralFund The Genera]Fund is the generaloperating fund ofthe Council. Ifis used to accountforalfinancialresources butthose required to be accounted forin anotherfund.these discretionary funds are accounted forand reported ac<;ording to the source (federal,state,orlocal)from which they are derived The folowing types ofprogram s com prise the Council'sGeneralFund: a. LOCal Localfunds are rece ived from various localsource s;such funds notbeing restricted to any specialuse. The Council's program participants also generate revenues through a variety of fund raising act ivitiesthatare not sponsored by any particulargrantaward.revenues and expe nses relating to these activities are accounted foras partofthe GeneralFund's loca lprogram. b PCOA Act735 PCOA (Act 735)fu ndsare appropriated forthe Governor's Ofico ofelderly Afairs by the Louisiana Legislature for rem itance to the Councilon Aging.The Councilm ay use these Act735 funds atits discretion.

12 c Section , SpecialRevenue Funds Specialrev~,nua funds are used to accountforthe pro ceeds ofspecific revenue sources that are legaly re stricted to expenditures forspecified purposes. The folowirlg are the fundsthatcomprise the Council's SpecialRevenue Funds 2. Title I-C Area Agency Administration (AAA)Fund The Title I-C AreaAgencyAdministration(AAA)Fund isused to accountforsome ofthe administrative costs associated with operating the SpecialProgram s forthe Aging. 3. Title IIC-1Fund The "l-itle litc-1fund is used to accountforfundswhich are used to provide nutritional,conoreaate to the eldedy is strategica ly lecated ce nters. During the fiscalyearjuly 1,1998 to June 30,1999,the Council served about1,470 congregate m eals. 4, Title IllC-2 Home Delivered Meals Funds Title IC-2 Fund is used to accountforfu nds which are used to provide nutritional,home delivered meals to hom ebound olderpersons.during the fisca lyearjuly 1,1998 to June 30,1999.the Councilserved about1.750 hom e delivered m eals. 5. SeniorCenterFund The SeniorCenterFund is used to accountforthe adm inistration ofseniorcenterprogram funds appropriated by the Louisiana Legislature to the Governor's Ofice ofelderly Afairs,which =passes through"the funds to the Council. This program provides co m m unity service centers atwhich older persons rece ive supportive services and padicipate in activities thatfostertheirindependence,enhance theirdignity,and encourage theirinvci vem entin and w ith the co m m unity. 6. Title flf-o Fund The Title I-D fund isused to accountforfu ndsused to provide in-home servicesto frailolderindividuals, including in-home supportive services forolderindividuals who are victim s ofalzheimer's disease and related disorders with neurologica land organic bre in dysfunction,and to the fam ilies ofsuch victims. Title I-D funds are provided by the United States DepartmentofHealth and Hum an Services through the Louisiana G overnor's O fice ofeiderty Afairs,which in turn "passes through"the funds to the Council. 7. Title II-F Title IlI-F fund is used to accountforfunds used fordisease prevention and health promotion activities including (1)equipmentand materials(scalesto weighpeople,educationalmatedale,and exercise equipment), (2)home injury control, (3)medica tionmanagement,(4)mentalhealth,(5)nutritional (assessment/screening,co unseling,and educa tion). The law dire cts the state agency adm inistering this program to =give pdority to are as ofthe state thatare m ed ica ly underserved and in which there are a la rge num berofolderindividuals who have the greatest eco nom ic and socialneed." Title I-F fu nds are provided by the U.S.Departm entofhealth and Hum an 10

13 serv ices through the Louisiana Govern or's O fice ofelderly Afairs,which in turn "passes thro ugh~the funds to the Council. 8. U.S.D.A Fund The U.S.D.A Fund is used to accountforthe adm inistration ofnutrition Program forthe Elderly funds provided by the United StatesDepartm entofagriculture through the Govern or's O fice ofe"ideriy Afairs, which in tum "passes through"the funds to the Council.This program reim burses the service provided about ce ntsforeachcongregate andhome-delivered mealserved to aneligible participantso that United States food and co m modities m ay be purchased to supplementthese prog ram s. 9. Supplem entalseniorcenterfund The Louisiana Legislative appropriated additionalmoney forvarious councils on aging through the state to be used to supplementthe prim ary state grantforse niorce ntera. Jeferson Davis Voluntary Council on Aging,Inc.,was one ofthe parish co uncils to rece ive a supplementalgrant.these funds are "passed through"the G overnor's O fice ofeidedy Afairs. t0. ProjectCare The ProjectCare Fund isused to accountforthe administrationofprogramsthatare sponsored by local utility co m panies.the com panies co lectcontributions from service customers and re m itthe funds to the t.ouisiana AssociationofCouncilson Aging (LACOA)which inturn remitsfundsrelating to JefersonDavis Parish Councilon Aging so thatit can provide assistance to the eideriy forthe paymentoftheirutility bils. t1. AuditFund The AuditFund is used to accountforfundsrece ived from the Governor's Ofice ofelderly Afairs that are restricted to use as a supplementto pay forthe costofhaving an annualauditofthe Council's financialstatem ents. 12. Child and Aduit Care Food Program The agency participatesin this USDA Prog ram as partoftheirhead Start Prog ram.the USDA fu nds are passed through the Louisiana DepartmentofEducation to the JDCOA where they are accounted foras partofthe Head StartProgram. 13. FederalEm ergency M anagementfood and ShelterProgram Th e JDCOA adm inisters the Fed eralem ergency M anagementfood and ShelterProgram in the Jef Davis Padsh are a. Funds rece ived from this prog ram are used by the COA to pro vide food and shelterto qualified recipients underemergency conditions 14, Fam ily support The COA co ntracts with the Parish O fice offamily Supportto provide transportation forchildren in the parish area.funds are provided by the US DepartmentofHHS and are passed through the Louisiana Departm entofhhs. 15. Head Start Program The Jef DavisCOA is the grantee Agency forthe Jef Davis Head Start Program.A lfunds are rece ived directly from the US Departm entofhhs and are accounted forin the COA's SpecialRevenue Fund - ftead StartProgram, because the COA is required by the GOEA,State oflouisiana to use a fund accounting system.the GOEA does notco nsiderthis to be a departure from GAAP.However,be cause Act456 which created the Council's on Aging in the State oflouisiana specifica ly intended forthem to be voluntary non-profitco rporations,with taxexemptstatus in accordance with IRC Section 501(c)(3)and beca use in 1993 the FinancialAccounting Standards Board prom ulgated Statements 116 and 117 which established generaly accepted accounting principles fornon-profitorganizations,such treatm entofthe Head Start Program fundsisadeparture from generaly accepted accounting principles. D, AccountGroups An accountgroup isafinancialreporting device designed to provide accountability force rtainassets and liabilities thatare notrecorded inthe fundsbe ca use 1heydo notdirectly afect netexpendable available financialresource s.the foitowing two accountgroupsare not "funds." 11

14 1. GeneralFixed Assets "[be fixed ~ssets(capitalouttsys)used in governmentalfund type operations ofjeferson Davis Councilon Aging,tnc.is accounted for(capitalized)in the GeneralFixed Assets AccountGroup and are recorded as expenditures in the government fund types w hen purchased. 2. GeneralLong-Term Debt Long-term liabilitiesexpected to be financed from govern m entalfunds are accounted forin the GeneralLong-Term Debt Aco oun~:g roup,the GeneralLong-Term DebtAccountgroup shows only the m easurem entoffinancialposition and is not involved w ith m easurem entofresults ofoperations, E, Basis ofaccounting The accounting and fil~ancialreporting treatmentapplied to a fund are determ ined by its m easure mentfocus.the governmentalfunds, including the Generalsnd SpecialRevenue Funds,are accounted forusing a currentfinancialre sourcesmeasurementfocus.w ith this me asure mentfocus,enly currentassets and curentliabilities are generaly included on the balance sheet.operating statements ofthese fundspresentincreasl~s(revenuesand otherfinancingsources)anddecreases(expendituresand otheruses)innetcurrentassets. Govern mentalfunds ~tre m aintained on the m odified accrualbasis ofaccounting in which revenues are reco gnized in the accounting period in which they becom e available and m easurable.expenditures are re co gnized in the accounting period in which the liability is incurred,ifm easurable. F. Transfers and Inte~und Loans Advances between funds thatare notexpe cted to be repaid are accounted foras transfers.in those cases where re paym entis expe cted, the advances are classified as due from otherfunds ordue to otherfunds on the balance sheet.short-term interfund loans are classified as interfund G. BudgetPolicy The Councilfolows these ploc eduresinestablishing the budgetary data reflected in these financialstatements The Governor's Ofice ofelderly Afairs "GOEA"notifies the Councileach yearas to the funding levelsforeach prograrn's grantaward, The executive Directorprepares a proposed budgetbased on the funding levelsprovided by GOEA and then subm its the budgetto the Board ofdirectors forapproval, "1he Board ofdirectors review and adoptthe budgetbefore June 30 ofthe currentyearforthe nextyear 1he adopted budgetis forwarded to the Governor's Ofice ofelderly afairs forfinalapproval A lbudgetary appropriations lapse atthe end ofeach fiscalyear(june 30) The budgetis prepared on a m odified accrualbasis,consistentw ith the basis ofaccounting,forcom parability of budgeted and actualrevenues and expenditures, Budgeted amountsincluded in the accompanying financialstatements include the originaladopted budgetamounts and a lsubsequentam endm ents. Act ualarnourds are co m pared w ith budgeted am ounts pe ded ice ly during the fiscalyearas a m anagem entco ntrol device. "The Councilm ay transferfunds between line item sas often es re quired butm ustobtainpriorapprovalfrom the Governer'sOfi ce ofelderly Afairs forfu nds received undergrants from this state Agency. Expenditures ca nnotlegaly exce ed appropriations on an individualfund level, Amountswere notbudgeted forrevenuesand expensesforthe Project Care Fund beca use theywere notlegaly required and the amountofrevenue to be received underthis program co uld notbe determ ined, 12. ]"he budgetpractices ofthe Head StartProgram are basicaly the same as those outlined above,with the exception 12

15 Note Continued ol~planning,approving,and amending the Head Startbudget.W ithin the Head Start Program,the Policy Council isrequired to be involved in the planning,approving and amending ofthe budget. H. TotalColum ns ofcom bined Statem ents -Overview Totalcolum nsontile combined statements-overview are captioned "memorandum only"to indicate thatthey are presented only to help with financialanalysis,data in these co lum ns do notpre sentfinancialposition,re suhls ofoperations,orchanges in financialposition in conform ity with generaly accepted accounting principles.neitheris such data co mparable to a co nsolidation,interfund elim inations have notbeen m ade in the aggregation ofttits data. Fixed Assets,Including Prope rty Leased UnderCapitalLeases A lfixed assets are staled athistorica lcostorestim ated historica lcost,ifactualhistorica lco stis notavailable.donated fixed assets are stated attheirestimated fairmarketvalue onthe date donated.no depreciation hasbeenprovided onthe generalflx~ L.pssets ofthe Jeferson Davis VoluntaP/Cou ncilon Aging,Inc.,however,is unders statutory mandate to re co rd depreciation on alfixed assets acquired with funds provided by and on behalfofthe Head StartProg ram. The Councilhas classified its fixed assets as fo lows: Vehicles O fice Furniture & Equipment Not ~ J.~.w cv3 0GO.2Q 64,529 Capitalleases are recorded atthe inceptionofthe lease asca pitaloutlay expendituresand otherfinancing sourcesin govem mentalfund type sand asassetsarid liabilities in the GeneralFixed Assetand GeneralLong-lento Debtaco ounts groups,re spe ctively,atthe present value ofthe m inim um I,.ase payments,using the interestrates stated in the leases.lease paym ents are reco rded as expe nditures on the due date;the portion ofthe payments applica ble to pdncipal,determ ined by using interestrates im plicitin the lease, is reported as reduction ofthe capitalized lease obligation in the GeneralLongoterrn accountgroup. J. Long-Term Liabilities Long-term liabilitiesexpe cited to be financed from govem mentalfunds are accounted forin the GeneralLong-term debtaccountgroup. Principaland interestpaymentson long.term liabilities (capitallease obligations)are acco unted forin the generalfund beca use the Councilintends to use genera lfund revenues to pay them. K. Com parative Data Com parative data forthe prioryearhave been presented in the accompanying financialstatements to provide an understanding of changes in the Council's financialposition and operations. However,pre sentation ofcom parative data by fund type have notbeen presented in each ofthe statem ents since theirinclusion would m ake the statem ents unduly com plex and dificultto read. L. Annualand Sick Leave Forgovern mentalfund types,the Council's liability foraccum ulated unpaid vacation,ifany,has been reco rd ed in the generallong-term debtgroup ofaco ounh;.these am ounts wilbe re corded as fund expenditures in the yearin which they are paid orbecom e due on dem and to term inated em ployees.the Councirs sick leave policy does notprovide forthe vesting ofsick leave. M. Prepaid r.:xperlses The Councilhaselect~d notto expense am ounts paid forfuture service suntilthose service s are consum ed to com ply with the co st reimbursementtermsofitsgrantagreements.prepaid expensesco nsistofthe paymentforinsurance premium (17,253)whichwas paid in June.The fund balances in the governmentalfund types have beenreserved forthe prepaid expense currently available for expenditure, Note 2 - Rcpvenue Recognition-lntergovernm enta lgrants,public Supportand M isce laneous Revenues A, IntergovernmentalGrants Intergovernrnentalgrantrevenues are recorded in governm entalfunds as revenues in the accounting period when they becom e susceptible to accrual,thatis measurable butavailable (modified accrualbasis). SeniorCenter,State A loca tion(act735),titlesillb,and D fundsare received asamonthlyalocationofthe totalgrantinadvance of the actualexpendituresare m ade. Sect ion 5311,and Auditfunds are also recognized as re venue once the related co sthas been incurred,and the grantreim bursem entis m easurable and available. 13

16 U.S.D.A.and Energy Outre ach program funds are earned and become susceptible to accrualbased upon the num beroflmits ofservice provided to program participants and are recorded as revenues atthattime. B. Public Supportand Miscellaneous Revenues Note 3 - Cash In Eh nk As reflected on the June balance sheet,the Councilhad a cash balance of76,563.al{deposits were secured by the FDIC Note 4 - Investm ents The Councilhad no f,jnds invested as o1june 30,1996 Note 5 - Board ofdirector's Com pensation The Board serves a.~ a group ofvolunteers;therefore no com pensation has been reco rded orpaid to the m em bers ofthe Board. However,Board Members are reimbursed forout-of-town travelexpensesincurred in accordance with the councirs regularpersonnel policy. Note 6 - Incom e,tax Status Note 7 - O perating Transte Ps From GeneralFund t,~specialrevenue Fund 147,332,net. Note 8 - Judgm ents,claim s and Sim ilarcontlngenctes There isno litigatien pending againstthe CouncilatJune 30,1999.Furthennore,the Council's m anagementbelieves thatany polential lawsuits would be a(h.~quately covered by Insurance. Note 9 - Federally Assisted Program The Councilparticipat,ss ina numberoffederaly assisted program s.these program s are audited in accordance with the Single Audit Actof1984 and 77re U.S.O fice ofmanagem entand BudgetCircularAo133,Audits ofprioryears have notresulted in any disalowed co sts;however,granloragenciesmay provide forfurtherexam inations. Based on priorexperinnce,the Councirs managementbe lieves thatfurtherexam inations would notresultin any significantdisalowed co sts. Note 10 -Com m itm arlts -Operating Leases None Note 11 -Econom ic Dependency The Councilreceives30% ofits revenue from funds provided through grants adm inistered by the Louisiana Govern ors Office ofeidedy Afairs.The grantam ounts are appropriated each yearby the fed eraland state governments.in the pastsignificantbudgetcuts atthe fed eraland/orstate level,would have had an adverse impacton the Council's operation budget,however,m anagementfeels thatthe 14

17 problem ofdependency no longerexists. Note 12 -Interfund Transfers lnterfund transfers in and outare listed by fund for2000 USDA Title fii-c1 Title ItlC2 SeniorCenter,Suppl~ment SeniorCenter Totalalfunds Transfers IN 9,635 9,635 4,~oo Transfers Out 19,270 4, _ 3 _ 3_7_0 Note 13 -Reservation offund Balance None Note 14 -Use ofestim ates Managementuseseslimates and assumptions inpreparing financialstatem ents.those estimatesand assumptions afectthe reported amounts ofassets and liabilities,the disclose ofcontingentassets and liabilities,and the reported revenuesand expenses.actualresults could diferfrom those estim ates. Note 15 -Requirem ents to Com ply with The Governor's Ofice ofelderly Afairs AuditGuide These statementscom plywith the above stated auditguide.the auditguide requires COA'sto presentfinancialstatem ents using a regulatory form at,therefore,they do notpresentfinancialstatements in accordance with generaly accepted accounting principlesfor non-profitorganizations.however,these statem ents are presented faidy in accordance with the regulations requiring theirpresentation. This note was dictated by The Legislative Auditor. Note 16 -Discontinued FederalProgram s The Head Start program,the CACFP Program and Summ erprog ram s were disco ntinued efective May 30,2000.A lrem aining assets were transferred to th,~=new Head Start sponsorand/orreturned to the funding agencies. Note 17-PriorPeriod Adjustment-Correction ofan error The June 30,1999 ending fund balance in the specialrevenue accountwas understated in error.the June 30,2000 beginning fund balance was restated to reflectthis increase. 15

18 Jef erson Davis Voluntary Councilon A ging,inc Jennlngs,Louisiana SCHEDULE OF PROG R/MM REV ENUES.EXPENI)nlIRES AND CHANG ES IN R JN D BALA NCE -G ENERAL FUND Forthe yearended June 30,2000 PCOA REVE-'NIJES A~ 735 "l'~?tsl ~ _ ntergovernm ental: O fice ofelderly Afairs ,779 LocalGovements 55,934 55,597 United W ay LocalSuppport TotalRevenues 30,000 ~ 9,~9~ 21,779 30,000 29,o~j EXPE[NDITURES Sslari~s Fringe, Trays Operating Services 11,086 11,086 Operating Supplies 443 "rotarexpenditures 11,601 ~ 1,601 Exce!~s (deficien(~)of Rev,~nues ever Expenditures 103,424 21, ,203 OTHER FINANCING SOURCFS (USES) Operatilg Transfers Out ~!2_5~553J ~ (21,779).(14Jj _332~ Excess(Deficiency)of Revenues and Other Source!;OverExpenditures ~nd OtherUses (22,129) (22,129) FUNr)BALANCES Beginnil~g ofyear 28, End ofyear ~426 16

19 ~c c~ ~ D I~ L ~m c~ o H ~~

20 I li ~ J i'l!i! i!

21 [ I 4 CL CL ~ i I

22 ~CH EDULE _OF P~ GP,A NT~ _OFE!CE O F UD_G EI[~V~.A G TUAI.~- " IE LOU[SIANA~GOVERNQR~ PCOA -.AC_T._735 Transfers to otherfunds: Title III-B TitleII-C (AAA) Title I1-C1 Title I-C2 Title II-D SeniorCenter Totals Jef Davis Councilon Aging,Inc. Jennlnga,Louisiana June Budget _ Actual _ 21,799 21,799 Favorable (Un~v~rable) CES Salaries Fringe Travel Operating Senlices Operating Supplies LegalServices Dietician Totals ,581 7,077 25, ,903 51, ,854 33,425 1,608 6, (15,649) 2,223 (7,985) 4,826 28O TITLE IG -_AREA AGENCY ADNIINIS'[~RA'rJQN Salaries 7,264 6,191 1,073,~:ringe Travel Operating Service s Operating Supplies Dietinian ,987 2OO 1, , ,101 (5,44o) (193) o Totals 20

23 SC HEDU LE_Q E_EROGP,A M EXP_ O~ F~CE OE E Jef Davis Councilon Aging,Inc. Jennlngs,Louisiana June June 30,2000 Variance- Favorable Budget (Un fayorable) TITLE.Il.C_-1 Salaries Fringe Travel 25,509 2, ,940 6, (431) (3,906) 195 Operating Serv ices 5,009 4, Operating Supplies (154) Dietician Caterer 44,215 36,640 Totals ~ 72.:P~~_ 7 = 5,222 3,68,4 "rltli;il(;:z Salaries Fringe Travel Operating Services 32,750 3,322 8,810 7,832 34,445 9,230 10,185 6,603 (1,695) (5,908) (1,375) 1,229 Operating Supplies (156) Dietician ,079 Caterer 42,012 9,893 Totals ,988 TJTLE:II-D Salaries 4 4,393 3, Ftinge 1 ravel , (757) 195 Operating service s Operating supplies Dietician (23) O Totals 6, O0 21

24 ~ NT~_P_RQYlDE[ OFY~CE O~ ~ E LDE Jef Davis Councilon Aging,Inc. Jennlngs,Louisiana June Variance - Favorable Bucket Actual OJnfavor~olo) TITLE Ill~ Salades 1, Fringe Travel ,427 4O (1,267) 3O Operating Services Operating Supplies , (903) 2,046 Dietician Totals SI:NIOR CENTER Salaries Fringe Travel Operating Services Operating Supfies OtherCosts Totals U.S.D,A Transfers to Title IC-1 g,635 9,635 Transferts to Title Ig C-2 Totals 19,270 9,635 _ I~,27o - AUDIT FUND Operating Service s Totals 5,000 5,000 1,341 1, ,659 Transfers to Title IB Totals =4~._oo 4,500

25 Schedule 4 SCHEDULE O F PRIO RITY SERVICES - TITLE Ill-PART B-G RANT FO R SUPPO RTIVE SERVICES Jeferson Davis Councilon Aging,Inc. Jennings,Louisiana Forthe yearended June 30,2000 Access(30%) Assisted'rransportation Case M anagement Transportation Inform ation & Referral Outreach ,835 7, % of GOEA Grant TotalAcc~ess E'~penses 24,323 41% In-Home (18%) Hom em aker Chore Telephoning Visiting AdulUDayc.a re/health PersonalCare 21,423 TotalIn.Home Expenses 21,423 38% Legal(5%) LegalAssist~nce 6,720 12% Non-Priority Services 101,082 TotalTitle IlB *Supportive Services Expenditures 153,548 Less: Transfers in Title IIB -Supportive Services G rant OriginalGrantAward NetofAdditional State Hom emakerand Transportation Funds and Transfers efcontracta lotm ents

26 Jef D avis C ouncilon Aging Jennings,Louisiana Schedule 5 C O M PA R AT IV E:S C H ED U L E O F G EN ERA l. FIX E D A SS ETS A N D C HA N G ES IN G EN E RA L FIX ED A SS ETS Fo rthe yearended June 30,2000 GeneralFixed Assets: Vehicles Ofice Fum itura and Equipm ent Buildings Balance June 30, 1999 Additions DeleUons 224, , , ,482 Batance June 30, , ,935 TotalGeneralFixed Assets if=vestm entin G eneralfixed Assets: Property Acquired with Funds from ~ Title tlc-1 Title IllF Title IG Section 18 State -Other Local USDH&HS-Head Start ,000 5, , , , ,000 5, ,046 TotalInvestmentin GeneralFixed Assets 648,492 4~8, ~ ,4~ 24

27 Schedule 6 JEFF D A VIS C O U N C IL O N A G IN G,IN C Jenninge,Louisiana SC HE DU LE O F EXPEN DITU R ES O F FED ERA L FINA NC IA L.A W A RDS Year Ended June 30,2000 Federal CFDA Aw ard Revenue Num ber Am ount Recogn~ed Expenditure Program Title USDA passed through LA I')e;:.tofEducation , , ,326 U.S.Department~ HeaKh & Hum Bn Sew ~ces Head Star , , ,311 U.S.DepartmentofHealth & Human Services Passed through the Louisiana Governor's Ofice ofeldedy Afairs: SpeciatProgram s forthe Agir~g: Title I,partB -GrantforE;:~ & SeniorCenters ,647 46,647 46,647 Title I1,PartC -AAA ,795 6,795 6,795 Title I~l,Pa;~C-1-Congl'ega~.e M ea~s ,742 46,742 46,742 Title I,PartC-2-Home Delivered M eals ,490 24,490 24,490 Title II1,PartD-In-Home Service forfrail OlderIndividuals , ,714 Title IlLPart F -Disease Prevention and Health Prom otion ,726 2,726 2,726 U S.Departm entoftransportation Passed through State DOTD FTA Grant#LA-18X016 State Project# Section 5311-RuralTransportatior', ,961 96,961 96,961 FederalEmergency Managem entagency FederalEmergency M anagementfood & ShelterPrograms ,803 13,803 13,803 U.S.DepartmentofHealth & Hurnan Services Passed through the LA Departm entof SocialServices Child Care and Oevelopmenl:BlockGrant , , ,692 U.S DepartmentofAgriculture Passed through the Governor'sOfice ofelderly Afairs: Nutrition Program Forthe Elderly ,009 17,913 19,270 TOTAL 1,413, ,. ~,984,4~78 25

28 Schedule 6 (Continued) Note A -Basis ofaccounting.the accom panying Schedule ofexpenditures offederalawards hasbeen prepared using the accrualbasis ofaccounting undergeneraly Accepted Accounting Pdnciples and which is the same basis of"accounting used forpresenting the financialstatem ents. Note B -The Jeferson Davis Voluntary CouncilOn Aging,Inc.,did notpass-through any ofitsfederalawards to a subrecepierlt d~rir,g the year. Note C -No federalawards w,~re expended in the form ofnon-cash assistance during the fiscalyear

29 G ~ 0.i::t~ o~/: Certified Public A ccountant 310 Beauregard Sulphur,Louisiana Tel.(337) Fax (337) SCHEDULE O F FINDINGS A ND Q UESTIO NED COSTS YearEnded June Board ofdirectors Jef Davis CouncilortAging Jennings, Louisiana Section I-Sum m ary of A uditor'sresults Financial.~Laj_g~L!~Lts t Type ofauditor'sre,oortissued: Internalcontroloverfinancialreporting: M aterialweakncss(es)identified? Reportablecondition(s)identified not considered to be m aterialweaknesses? Noncom pliancem aterialto financialstatem ents noted? Unqualified N o N one reported N o Federa!..A.war_d_8 nternalcontrolovermajorprogrmns: M aterialweakne~s(es)identified? Reportablecondition(s)identified not considered to be m aterialw eakn esses? Type ofauditor'sreportissued on com pliance formajorprot;rams: Any auditfindingsdisclosed thatarerequired to be reported in accordance w ith CircularA -133 Section.510(a)? dentification ofmajori~!~ Qgr Qg~ N o N one reported Unqualified N o

30 Auditee qualified aslow-risk auditee? Identification ofmajorp.r.g.~ g~: CFDA N um ber N am e of FederalProgram Head Start Section I1- FinancialStatem entfindings N one Section 111-FederalAward Findingsand Q uestioned Costs N one 28

31 JEFFERSON DAVIS COUNCIL ON AGING,INC. Schedule ofboard Mem bers Com pensation June 30,2000

32 None required JEFFERSON DAVIS COUNCIL.O N AGING,INC. Corrective Action taken on PriorYearfindings June 30,2000

33 JEFF DAVIS COUNCIL O N AG ING,INC. EXIT CONFERENCE June 30,2000 An exitconference w asheld on Septem ber29,2000 atthe JDCOA Complex.Those in atendance were Gleen O.Everhart,CPA and M rs.helen Lsn;ley,Executive Directorofthe JDCOA. Ireported to herthatidid notdiscoverany m aterialweakness in intern alco ntroland no instance s ofnon-com pliance with federaland state laws. Ihave also issued a.,,eparate m anagem entleter,dated Septembe r29,1999,to provide additionalreco m m endationsto the Councilto improve itsoperation.m y findings and reco m mendations were rece ived favorably and action,ifrequired,has been taken to implement those reco m m endations, The Councilwas in agre em entwith the co ntents ofthe managementleterof

34 81/31/2B01 15: ]20 GLEEN 0 EVERHART CPA PAGE 82 Tel O LEIBn O.13V B R H R R T Certified Public Accountant 104 W estsecond Street DeRidder.Louisiana Ernail:Cpagleen@ aol.com Fax [337] Septem ber 29,2000 Boa~ ofdij~cto~ Jef Davis Councilon Aging Jennings,Loulsiana Ihave audilad yourfinancialstatem ents forthe yearended June 30,2000 and issued m y reporton Septem ber29,2000. Iam pleased to inforrn you thaithe Head Start Program ha.=;been successfuly closed.this m eans thatthere wilno longerte a conflictbetween the OEA auditrequirem ents and those ofhead Start, Dudng m y auditipaid particularattention to you internalcontrols overtravelreim bursem ents claim ed by yourem ployeq~s. M y w ork does notperm itan opinion,however,itwas sufi cientto inform you that I considerthe controls adequate in the circum stance. Ifind no re&son to b(;lieve thatyourloss of the Head StartProgram wilim ped yourability to continue as a going conce rn,