T H E A R C O F M O R E H O U SE

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1 LFI~%,!,";iM'L /:, L!,~ TOR 2001J~ld-3 ~, ~i8:52 T H E A R C O F M O R E H O U SE FinancialStatem ents For the Y ear E nded June 30,2000 Underprovisions of state law,this reportis a public docum ent.a copy ofthe report has been st~bn ~;tted to the entity and other appropriate public officials.7 he reportis available forpublic insp~ctieq attht~ Datorl Rouge ofice oftl~e Leo{s!.~tive /.,uditoran~,w here appropriate,atthe ofice ofthe parish clerk ofcourt. Release Date f-,~ q-o/

2 T H E A R C O F M O R E ItO U SE JU N E 30,2000 TA BLE O F C O N TE N T S IndependentA uditors'r eport Statem entof FinancialPosition Statem ento:f A t:tivities Slatem entof FunctionalExpenses Statem entof C~,sh Flow s N otes to FinancialStatem ents SUPPI.EM EN TA L SCH ED U LES Schedule 1-Sclhedule of FinancialPosition Schedule 2 -Schedule of A ctivities Schedule of Expenditures of FederalA w ards Schedule of Expendituresof State A w ards N otesto Schedule o f Expendituresof Federaland State A w ards REPORTS REQUIRED BY GOVERNM ENTAUDITING STANDARDS IndependentA uditors'r eport on C om pliance and InternalC ontroloverfinancial R eporting B ased on an A uditof FinancialStatem entsperformed in A ccordance W ith G overnm enta uditing,standards

3 Lufey Huffm a n & M onroe [A Protessloso Ace(un rg CO.r~orotlon} C E R IlF IE D P U B LIC A C C O U N TA N rs John L.Lufey,M B~ CPA F:ronc:isI,Huffm on,cpa L,Fred M onroe,cpa EstherAI1eb(~rf~ CPA Carolyn A.C lorko,cpa Board ofi)iroctors The A R C O F M orehouse Bastrop,Louisiana W e have audited the accom panying statem ent of financial position of The A RC of Morehouse (a nonprofitorganization -the Association)as ofjune 30,2000,and the accom panying statem ents ofactivities,functionalexpenses and cash flow s forthe year then ended. These financial statem ents are the responsibility of the A ssociation's m anagem ent. O urresponsibility is to express an opinion on these financialstatem ents based on ouraudit. W e conducted ourauditin accordance w ith genera ly accepted auditing standards and the standards for financial and com pliance audits contained in G overnm ent A uditing Standards,issued by the C om ptrollerg eneralofthe United States and the Louisiana G overnm ental A udit G uide published by the Society of Louisiana C ertified Public A ccountants and the Louisiana Legislative A uditor. Those standards require thatw e plan and perform the audit to obtain reasonable assurance about w hether the financial statem ents are free ofm aterialm isstatem ent.a n auditincludes exam ining,on a testbasis, evidence supporting the am ounts and disclosures in the financialstatem ents. A n audit also includes ;assessing the accounting principles used and significantestim ates m ade by m anagem ent,as w e las evaluating the overa lfinancialstatem ent presentation.w e believe thatourauditprovides a reasonable basis forouropinion. In ouropinion,the financialstatem ents referred to above presentfairly,in a lm aterial respects,the financialposition ofthe Association as ofjune 30,2000,and the changes ofits netassets and its cash flow s forthe yearthen ended in conform ity w ith genera ly accepted accounting principles. In accordance w ith G ovem m enta uditing Standards,w e have also issueclourreportdated O ctober13,2000,on ourconsideration ofthe A ssociation's internalcontroloverfinancial reporting and our tests of its com pliance w ith certain provisions of law s,regulations, contracts and grants. "]-hatreport is an integralpart ofan auditperform ed in accordance with Govem m entauditing Standards and should be read in conjunction with this report in considering the results ofouraudit. (318) FAX (318) N 18thST ~ PO Box 4745 ~ M onroe LA MEMBERS OFTHEAMERICAN INSIlTUTEOECERTIFIED PUBLIC ACCOUNTANTS

4 B oard of D irectors The A RC of IVlorehouse O urauditw as m ade forthe purpose ofform ing an opinion on the financialstatem ents taken as a w hole. The accom panying financial inform ation listed as Supplem ental Schedules in the accom panying Table ofc ontents are presented forpurposes ofadditional analysis and 8~re nota required partofthe financialstatem ents ofthe Association. Such information has been subjected to the auditing procedures applied in the auditofthe financialstatem ents and,in ouropinion,is fairly presented in a lm aterialrespects,in relation to the financialstatem ents taken as a w hole. (A ProfessionalAccounting Corporation) O ctober 13,2000

5 T H E A R C O F M O R E H O U SE ST A T E M E N T O F FIN A N C IA L PO SIT IO N JU N E 30,2000 A SSE T S T em porarily U nrestricted R estricted T otal C ash and C ash Equivalents Investm ents A ccounts Receivable Fixed A ssets A ccum ulated D epreciation O thera ssets $ 171,125 $ 235, , ,847 (311,656) 10,090 62,474 (14,437) 171, , , ,321 (326,093) 10,090 T O T A L A SSET S $ 855,319 $ 48,037 $ 903,356 L IA B II,IT IE S A N D N ET A SSE T S Liabilities A ccounts Payable A ccrued Liabilities TotalLiabilities 12,621 $ $ 12,621 28,387 28,387 41,008 41,008 N eta ssets U nrestricted Tem porarily Restricted TotalN eta ssets 814, , , ,311 48, ,348 TO TA L LIA BILITIES A N D N ET A SSETS $ 855,319 $ 48,037 $ 903,356 The accom panyin[,notesarc an integralpartof thisfinancialstatem ent

6 TH E A R C O F M O R E ItO U SE STA TEM EN T O F A C TIV IT IE S FO R TH E Y EA R EN D ED JU N E 30,2000 Support,R evenues~m d G ains lntergovem m entalrevenue Program Receipts U nited Fund D onations M em berships Interest M iscellaneous Netrealized gains(losses) N etassetsreleased from restrictions TotalSupport and R evenues U nrestricted 1,411, ,500 5,788 12,594 3,420 13,540 7,004 (3,142) 5,826 1,658,194 Tem porarily R estricted 26,675 (5,826) Total 1,438, ,500 5,788 12,594 3,420 13,540 7,004 (3,142) Expenses Program Services Day Program ContractServ ices Supported Living EastM orchouse Cm ranuoity H om e CrossettRoad Com m unity H om e Early Interv~l~tion Totalof Program Services 261,627 85, , , ,786 46,943 1,410, ,627 85, , , ,786 46,943 1,410,966 Supporting Se~,i~:es G eneraland A dm inistrative 227, ,742 TotalExpenses ,638,708 Increasesin N eta ssets 19,486 20,849 40,335 N eta ssetsatbeginning of Y ear 794, N ET A SSETS A T END O F Y EA R 814,311 48,037 $ 862,348 The accom panyir~g ~otesare an integralpartof thisfinancialstatem ent. 4

7 TH E A R C O F M O R EIIO U SE STA TEM EN T O F FU N C TIO N A L EX PEN SES FO R T H E Y EA R EN D E D JU N E 30,2000 G eneral and A dm inistrative A dultliabilitation (Day)Program C ontract Services Program Suppor~ d Living Salaries PayrollTaxes and Fringe B enefits TotalSalaries and Related Expenses - $ 182,876 $ 80,553 $ 19, ,385 80, ,036 61, ,487 Consultants D ata Processing D uesand Subscriptions Food and ClientN eeds Insurance M aintenance M iscellaneous O ffice Postage ProfessionalFees Public A w areness Supplies Taxesand Licenses Telephone Traveland Conventions Utilities Total , , , ,181 12,811 24,252 1, , , , ,510 1,631 1, ,053 85,175 20,347 1,337 1,344 5,195 18,120 8,592 2, , ,659 1,394 2,581 4,339 1, ,174 1)epreciation 8,413 33,518 Functionalexpensesbefore reallocation 14, ,028 85, ,174 Rcallocation of generaland adim inistrative expensesfrom program services(note4) 213,599 (42,401) (93,299) TO TA L FUN CTIO NA l.ex PEN SES $ $ The accom panyiztg notesare an integralpartofthisfinancialstatem ent.

8 Services R esiden!ialservices E ast C rossett M orehouse R oad Early Intervention T otal 114,548 $ ,048 $ 11,521 5,292 $ 540 1,042, , , ,569 5,832 1,147,300 1, ,725 7, , (I 70,134 7,931 10,453 33, , ,630 63,382 3,344 3, ,165 48, , , ,869 1, , , , , ,073 1,496 4, , , , , ,417 5,396 43, ,750 1,220 10, ,420 1,041 17,114 54,471 1,583,805 54, , ,231 54,471 1,638,708 (32,926) (37,445) (7,528) $ 205,560 $ 225,786 $ 46,943 $ 1,638,708

9 T H E A R C O F M O R EItO U SE STA T EM E N T O F C A SH FL O W S F O R T H E Y E A R E N D E D JU N E 30,2000 C ash Flow s From O perating A ctivities Increase in netassets Adjustmentsre,reconcile increase in netassetsto netcash provided by operating activities: D epreciation (Gain)Losson disposalof property C hanges in assets and liabilities: A ccounts receivable O therassets A ccounts payable A ccrued liabilities N etcash provided by operating activities 40,335 54,903 3,142 20,027 6,891 (11,453) (31,606). 82,239 C ash Flow sflom Investing A ctivities Paym ents for property and equipm ent N etincrease in C ash and C ash Equivalents (57,239) 25,000 Beginning C ash and C ash E quivalents 146,125 ENDING CASItAND CASttEQ UIVALENTS 171,125 The accom panying:,notesare an integralpartof this financialstatem ent 6

10 TH E A R C O F M O R EH O U SE N O T E S TO FIN A N C IAL STA T EM EN T S FO R TH E YEA R EN D ED JUN E 30,2000 N ote 1- D escription of O rganization The ARC of M orehouse isa nonprofitvoluntary health an d w elfare association chartered in 1958 to prom ote the generalw elfare of m entally retar ded personsresiding in M orehouse Parish. N ote 2 - Sum m ary of SignificantA ccounting Policies,4. FinancialStatem entpresentation In accordance with Statementof FinancialAccoun ting Standards(SFAS)No.117, "FinancialStatem entsof N ot-for-profita ssociations," the A ssociation isrequired to reportinform ation regarding itsfinancialposition and activitiesaccording to three classesof netassets(unrestricted netassets,temporarily restricted netassets,and perm anently restricted netassets)based upon the existence orabsence ofdonorim posed restrictions. In accordan ce w ith the SFA S N o,116,"'accounting for ContributionsReceived and ContributionsM ade," contributionsreceived are recorded asunrestricted,tem porarily r,e,stricted,or perm anently restricted supportdepending on the existence an d/or nature of any donorrestrictions.the A ssociation hasnotreceived any contributionsw ith donor-im posed restrictionsthatw ould resultin perm anently restricted netassets. B. Basisof Accounting The financialstatem ents have been prepared on the accrualbasis of accounting, w hereby revenues are recognized w hen earned and expensesare recognized w hen the relate,d liabilities are incurred. C. Cash and Cash Equivalents The A ssociation considers allhighly liquid investm ents w ith a m aturity of three m onths orless w hen purchased to be cash equivalents. D. t:'lautassets Plantassets are recorded athistoricalcost. M aintenan ce and repairs of properly and equipm en tare charged to operationsand m ajorimprovem etltsarecapitalized,the A ssociation has a policy to capitalize plantassets costing m ore than $500.Upon retirem ent, sale or oth er disposition of property and equipm ent, the cost and accum ulated depreciation are elim inated fi'om the accounts an d the gain orlossis included in operations.

11 TH E A R C O F M O R E H O U SE N O T E S T O FIN A N C IA L ST A T E M E N T S FO R TH E Y EA R EN D ED JU N E 30,2000 Depreciation of buildingsand equipm entiscom puted by the straight-line m ethod over the follow ing estim ated service lives: Y ears Buildings an d Im provem ents Furniture and Equipm ent V ehicles E. Supportand Revenues Revenuesreceived undergovernm entgrantprogram sare recorded asrevenuesw hen lhe A ssociation has incurred expenditures in com pliance w ith the specific restrictions.d onations are considered to be available for unrestricted use unless specifically restricted by the donor. F. FunctionalExpenses Expenses thatcan be identified w ith a specific program and supportservice are allocated directly according to their natural expenditure classification. O ther expenses thatare com m on to severalfunctions are allocated by various statistical basis. G. Program s The A ssociation'sprincipalprogram sand prim ary funding sourcesare AdultHabilitation (Day Program)-The AdultHabilitation fundsareused to train clients in vocational and prevocational activities and supportive services. The supported em ploym entprogram w ascom bined w ith the D ay Program in the current year. ContractServ ices -ContractServ ices incom e is derived fi'om serv ices by clients which includejanitorialand othercontracts. Supported Living - Supported Living incom e is received from the Louisiana D epartm entof H ealth and H ospitals. 'Ibis program,sim ilar to the Com m unity t![om es,helpsthe individualclients becom e m ore independentby providing support and training in theirresidencesw ithin the com m unity. Com m unity H om es -Com m unity H om es'incom e is received fi'om the Louisiana D epartm entof H ealth and Hospitals. C lients pay a pro-rata share of the costsbased on theirincom e.thisprogram providesclientsw ith a hom e environm cntw ithin the eom nm nity and helpsthem becom e m ore independentcitizens.

12 T H E A R C O F M O R EH O U SE N O TES TO FINA N CIA L STA TEM ENTS FO R T H E Y EA R EN D E D JU N E 30,2000 Early Intervention - Early Interv ention's incom e is received tiom the Louisiana D epartm entof H ealth and H ospitalsan d the D epartm entof Education.Thisprogram providestraining and therapeutic servicesto disabled infants. 11. ;Fax-ExemptStatus TheAssociation isexemptfrom income tax undersection 501(c)(3)oftheInternal R evenue Code an d, therefore, has no provision for Federal incom e taxes. Contributionsto the A ssociation ar e tax deductible w ithin the lim itationsprescribed by the Code. Estim ates The preparation of financial statem ents in conform ity w ith generally accepted accounting principlesrequiresm anagem entto m ake estim atesand assum ptionsthat affectcertain reported anaountsand disclosures. A ccordingly,actualresultscould differfrom those estim ates. N ote 3 - Fixed A ssets Fixed assetsar e recorded atcostw hen costcan be determ ined,and atestim ated costw hen costis unknow n. A lldonated assets have been recorded at fair value on the date of donation. Fixed assetsconsisted of the follow ing atjune 30,2000 Buildings Equipm ent V ehicles Land Im provem ents Less:A ccum ulated D epreciation $ 246, , ,728 17,820 50~,501 _ ~ (326,()93~ TOTAL FIXED A SSETS $ 324,228 Included in vehiclesabove are tw o vehiclesvalued at$62,474 acquired through Federal grantsin previousyear sas w ellas in the currentyear.the A ssociation retainstitle to these vehiclesaslong asthey are kept,m aintained and used forthe A ssociation's designated purpose. These vehiclesare notto be sold ordisposed of during theirusefullives,5 years or 100,000 m iles,w ithoutthe state's perm ission;therefore,these vehicles and related accum ulated dep reciation are show n as tem porarily restricted. The restriction w illbe rescinded from both vehicles in 2004,atw hich tim e the assets w illbe transferred tita n tem porarily restricted to unrestricted.

13 T H E A R C O F M O RE H O U SE N O T E S T O FIN A N C IA l.sta TEM EN T S FO R TH E Y EA R EN DED JUN E 30,2000 N ote 4 - A llocation of G enerala dm inistrative E xpenses Expertsesthatcan be identified w ith a specific program an d supportservice are allocated directly according to theirnaturalexpenditure classification. O ther expenses thatare com m on to sew :ralfunctionsare allocated by variousstatisticalbases.the follow ing isthe detailof the $213,599 of generaland adm inistrative expensesreallocated. I)ata Processing I)ues& Subscriptions Food and ClientN eeds Insurance M aintenance O ffice t'ayrolltaxes and Fringe B enefits t'ostage ProfessionalFees Public A w areness Salaries Supplies Telephone Traveland C onventions U lilities TO TA L $ 3,028 1,684 3,196 12,928 11,406 5,637 11,367 1,880 13, ,928 6,539 4,533 3,095 2,543 $ 213,599 N ote 5 - SignificantC oncentrationsof R isk The A ssociation'scash and cash investm entsar e on depositw ith severalfederally insured financialinstitutions. The bank balance of these fundstotaled $440,433 atyear-end,of w hich allbut$44 w asinsured. The A ssociation receivesapproxim ately 80% of totalrevenue and supportfrom various state agencies. 10

14 SU PPL EM EN TA L SC H ED U L E S

15 TH E A R C O F M O RE H O U SE,CO M BIN IN G SC H ED U LE O F FIN A N C IA L PO SITIO N JU N E 30,2000 Program A SSETS L ocal Fund V ocational (Day)Program C ontract Services Supported Living Cash and Cash Equiw~lents Investm ents AccountsReceivable InterestReceivable D ue From O therfunds Fixed A ssets Accum ulated Depreciation O thera ssets 169, , , ,321 (326,093) 7,299 43, , $ 3,286 9,357 lo0 $ 52, TO TA L A SSETS 948,435 $ 629,207 $ 12,743 $ LIA BILITIES AN D NET A SSETS C urrentliabilities A ccountspayable A ccrued Liabililies D ue To O therfunds TotalCurrentLiabilities 3,900 $ 483, ,361 1,161 3, , $ 1,054 1,142 14, , ,006 Unrestricted NetAssets(Deficit) T em porarily R estrielted N eta ssets 413, (31,960) 110, TotalNetAssets(Deficit) 461, (31,960) 10,765 TO TA L LIABILITII~S A ND N ET A SSETS 948,435 $ 629,207 $ 12,743 $ 626,77

16 SC ItED U LE 1 Services R esidentialservices East C rossett M orehouse R oad E arly Intervention T otal 709 $ $ 27,783 12,039 $ 171, , , , , ,707, ,321 (326,093) ,688 $ 165,386 $ 13,346 $ 2,610,576 1,581 $ 4, ,991 4,838 86,765 93,594 2,869 $ 12, ,387 3,744 1,707,220 6,620 1,748,228 44,846 (28,208) 6, (28,208) ,311 48, ,348 $ 214,688 $ 165,386 $ 13,346 $ 2,610,576

17 TH E A R C O F M O R EH O U SE C O M BIN IN G SCH ED U LE O F A C TIV ITIES FO R TH E Y EA R END ED JUN E 30,2000 Program Local Fund R evenuesand O ther Support Intergovem meotalp,evenue 26,675 $ Program Receipts United Fund D onations M em berships 3,420 Interest 1,233 M iscellaneous 2,879 NetRealized Gains(Losses) (3,142) TotalReven uesand O thersupport 31,065 V ocational (Day)Program 245,513 98, Contraet Services ,136 1,490 $ Supported Living 640, ,021 64, ,689 Expenses Program Services D ay Program ContractServices Supported 15viog EastM orehouse Com m unity Hom e CrossettRoad Com m unity Itom e Early Intervention TotalProgram Services ,510 85,1'75 85, LocalFund 5,730 TotalExpeose~before Depreciation 5, " D epreciation TotalExpenses , EXCESS (Deficiency)tf REVENUES OVER EXPENSI:S $ 16,922 $ 39,993 $ (20,438) $ (36,485)

18 SC IIED ULE 2 Services ResidentialServices East C rossett M orehouse R oad Early Intervention Total 236,513 $ ,949 6,967 15, ,788 12,248 10, , ,916 44, , ,500 5,788 12,594 3,420 13, (3,142) , ,510 85,]75 679, , , , , ,471 1,583,805 54, , ,335

19 T H E A R C O F M O R E H O U SE sc Iq[ED U L E O F E X PE N D IT U R E S O F FED E R A L A W 'A R D S F O R T H E Y E A R E N D E D JU N E 30,2000 FederalG rantor/pass-t hrough G rantor/program T itle C.F.D.A. N um ber Federal A w ard A m ount U.S.D epartm entof E ducation Louisiana D cparlm entof Education O ffice of SpecialEducationalServices Early Intervention Program ,250 2,613 U.S.D epartm entof T ransportation Louisiana D epartm entof Transportation and D evelopm ent Elderly and D isabled G rants Program ,675 26,675 TO TAL FEDER AI,AW ARD S $ 46,925 $ 29,288 Scc N otcsto Schedule of Expenditures of Federaland State A w ards

20 T H E A R C O F M O R E H O U SE SC H E I)U I.E O F EX PEN D IT U R E S O F STA TE A W A R D S FO R T H E Y E A R E N D E D JU N E 30,2000 G rant A ssistance I.D.N um ber State A w ard A m ount Expenditures Louisiana D epartm entof H ealth and H ospitals O ffice forcitizensw ith D evelopm ental D isabililics Early Intervention Program $ 2,500 $ 2,500 O ffice forcitizensw ith D evelopm enta D isabilities AdultHabilitation (Day) , ,301 TO TA L STA T E A W A ITd)S 188,347 $ 184,801 See N otesto Schedule of Expendituresof Federaland State A w ards

21 TH E A RC O F M O RE H O U SE N O TE S TO SC H ED U LE S O F EX PE N D ITU R E S O F FED ER A L A N D STA T E A W A R D S FO R TH E Y EA R EN D ED JUN E 30, Basisof Accounting The i Schedule of Federaland State A w ards isprepar ed on the accrualbasiso f accounting, w hich sdiscussed in N ote 1to the A ssociation's financialstatem ents. 3. Relationship to the Association 's FinancialStatem ents The follow ing table is presented to reconcile the state aw ards received under various g rant program sre,the A ssociation's financialstatem ents. UM TA Van $ AdultHabilitation (Day)Program Supported Living EastM oreh~use C om m unity H om e Crossea R oad Com m unity H om e Early Intervention TO TA I,S Federal A w ards 26,675 $ $ 29,288 State A w ards 180,876 1,425 2,613 2,500 FeesFor Services $ $ 64, , , ,949 _ 10~291 _. Total lntergovernm ental R evenue 26, , , , ,

22 REPORTS REQUIRED BY GOVERNM EN T A UDITIN G STANDARDS

23 Luffey Huffm a n & M o nroe fa ProtessJonalAccc,untlng Corporotlon) C E R IIF IE D P U B LIC A C C O U N IA N IS I:~EPO RT O N CO M PLIA NC E A N D O N INTER NA L C O NTRO L O VER FINA N C IA L R EPO RTIN G BA SED O N A N A U D IT'O F FINA N C IA L STA TEM ENTS PER FO R M ED IN A C CO R DA NC E W ITH G O VER NM EN T A UD ITIN G S TA N DA R D S Board of I~)irectors The A RC ofm orehouse Bastrop,I_ouisiana W e have audited the financialstatements ofthe ARC ofmorehouse (the Association)as ofand forthe yearended June 30,2000 and have issued ourreportthereon dated O ctober 13,2000. W e conducted our audit in accordance w ith genera ly accepted auditing standards;the standards applicable to financialaudits contained in G overnm enta uditing Standards,issued by the Com ptro lerg eneralofthe United States;and the Louisiana G ovem m enta/a uditg uide,issued by the Louisiana Society ofc ertified Public Accountants and the Louisiana Legislative A uditor. C om pliance A s part ot obtaining reasonable assurance about w hether the A ssociation's financial statem ents are free ofm aterialm isstatem ent,w e perform ed tests ofits com pliance w ith certain provisions oflaw s,regulations,contracts and grants,noncom pliance w ith w hich could have a direct and m aterialeffect on the determ ination of financial statem ent am ounts. How ever,providing an opinion on com pliance w ith those provisions w as notan objective ofourauditand,accordingly,we do notexpress such an opinion.the results of ourtests disclosed no instances ofnoncom pliance thatare required to be reported under G overnm enta uditing Standards. nternalc ontroloverfinancialreporting In planning and perform ing ouraudit,w e considered the A ssociation's internalcontrolover financial reporting in order to determ ine; our auditing procedures for the purpose of expressing OLIropinion on the financialstatem ents and notto provide assurance on the internalcontroloverfinancialreporting. O urconsideration ofthe internalcontrolover financialreporting w ould notnecessarily disclose a lm atters in the internalcontrolover financialreporting thatm ightbe considered m aterialw eaknesses. A m aterialw eakness is a condition in w hich the design or operation of one or m ore of the internalcontrol com ponents does not reduce to a relatively low levelthe risk that m isstatem ents in am ounts thatwould be m aterialin relation to the financialstatem ents being audited m ay occurand nolbe detected w ithin a tim ely period by em ployees in the norm alcourse of [318] FAX (318] Pagc N 18~hST ~PO Bex 4745 ~ M onroe LA MEMBERSOFTHEAM ERICAN INSTI[UTEOFCERTIFIED PUBLIC ACCOUNTANTS

24 Board of D irectors The A R C of IVIorehouse perform ing theirassigned functions. W e noted no m atters involving the internalcontrol overfinancialreporting and its operation thatw e considerto be m aterialw eaknesses. (A ProfessionalAccounting Corporation) O ctober13,

C ITY O F R EFU G E D R U G A N D R EH A BIL ITA TIO N C EN TE R,IN C,

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