appropriate,atthe office ofthe pa~isl]cletk of Re,e~se,)~,e~_t.J~/6_-.'~_~. Underprovisions ofs.ta~e law,this reportis a I

Transcription

1 Underprovisions ofs.ta~e law,this reportis a I (IO(:brr~er]t./~,(:o:,y oftile r:::,-;d,ha:~'r~2~:i]s'd!)m it the entity ~lhd.qtt,:r~b ~rr~::i~te p!!:)ic o1?ck:is Iepartis ~vai!uble M Ii~:".q.:illS!)'~'C;.i(!i/[itt'Jltl[ l~.ouge office ofthe l(,~i?.,h t;vc Au(htoram l,w l appropriate,atthe office ofthe pa~isl]cletk of Re,e~se,)~,e~_t.J~/6_-.'~_~.

2 AVOYELLES PRO G RESS ACTIO N CO M M ITTEE TABLE O F CO NTENTS Paqe No. INDEPENDENT AUDITO RS'REPO RT 1-2 REPO RT O N CO M PLIANCE AND O N INTERNAL CO NTRO L OVER FINANCIAL REPO RTING BASED O N AN AUDIT O F THE FINANCIAL STATEM ENTS PERFORM ED IN ACCO RDANCE W ITH GOVERNM ENT AUDITING STANDARDS G ENERAL PURPO SE FINANCIAL STATEM ENT.C; Combined Statem entoffinancialposition Com bined Statem entofactivities Combined Statem entofcash Flows NO TES TO FINANC IAL STATEM ENTS SU PPLEM ENTA L INFO RM ATIO N CO M BINING STATEM ENTS Com bining Statem entoffinancialposition A lindirectfederalfunds Com bining Statem entofactivities - A lindirectfederalfunds Com bining Statem entofcash Flows A lindirectfederalfunds

3 AVO YELLES PRO G RESS ACTIO N CO M M ITTEE TABLE O F C O NTENTS (continued) Pa~e No. SUPPLEM ENTAL INFORMATION (continued) APPENDIX A - OTHER REPORTS REQ UIRED BY O FFICE O F MANAGEMENT AND BUDGET (OMB)CIRCULAR A-133 Repod on Schedule ofexpenditures offederalawards Schedule ofexpenditures offederalawards Notes to the Schedule ofexpenditures offederalawards Reporton Com pliance with Requirem ents Applicable to Each M ajorprogram and InternalControlOver Com pliance in Accordance with O M B CircularA-133 Schedule ofauditresults,findings,and Q uestioned Costs Schedule ofprioryearauditfindings Corrective Action Plan forcurrentyearauditfindings

4 D ucote& C ompany Certified Public Accountants A loysia C.D ucote,ci'a,i'c loan S.Ducote,CPA,PC ndependentauditors'report To the Board ofdirectors Avoye les Progress Action Com m itee,inc. M arksvile.louisiana W e have audited the accom panying statem ent of financial position of the Avoyeles Progress Action Commitee,Inc.(a nonprofitorganization)as ofseptember30,2001,and the related statemonts ofactivities and cash flows for the year then ended. These financiat statem ents are the responsibility of the 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 genera ly accepted auditing standards and standards applicable to financialaudits contained in G overnm entauditing Standards.issued by the Com ptrolerg eneralofthe United States. Those standards require thatw e plan and perform the auditto obtain reasonable assurance aboutwhetherthe financialstatem ents are free ofm atedalm isstatem ent. An auditincludes exam ining,on a testbasis,evidence suppoding the am ounts and disclosures in the financialstatem ents. An audit also includes assessing the accounting principles usec~end significantestim ates m ade by m anagem ent,as w ell as evaluating the Overalfinancialstatem entpresentation. W e believe thatourauditprovides a reasonable basisforouropinion. In ouropinion,the financialstatem ents referred to above presentfairly,in alm aterialrespects,the financial position ofthe Aveye les Progress Action C om m itee,inc.,as ofseptem ber30,2001,and the results of operations forthe yearthen ended in conform ity w ith genera ly accepted accounting principles. In accordance with G overn m entauditing Standards_,we have also issued a repod dated January 31,2002, on ourconsideration ofavoyeles Progress Action Com m ittee,inc.'s intern alcontrolstructure and a report dated January 31,2002 on its com pliance w ith law s and regulations. American hlstituteof Cetlified PublicAccountants 219 North ~Members~ Washington ~PostQflce Box 309 ~M arl~ville,louisiana 71351~(318) ~Far(318) Society of Louisiana Certified PublicAccountants

5 Board ofdirectors Page 2 January 31,2002 O urauditwas m ade forthe purpose ofform ing an opinion on the financialstatem ents taken as a w hole.the accom panying financialinform ation listed as supplem entary inform ation in the table ofcontents is presented forthe purpose ofadditionalanalysis and is nota required partofthe financialstatem ents ofthe Avoyeles Progress Action Com m ittee,inc. The accom panying schedule ofexpenditures offederalawards contained in Appendix A is presented forpurposes ofadditionalanalysis as required by U,S.Office ofm anagem ent and BudgetCircularA-133,Audits ofstates LocalG overnm ents,and Non-ProfitO rqanizations,and also is nota required part ofthe financialstatements. Such information has been subjected to the auditing procedures applied in the auditofthe financialstatem ents and,in ouropinion,is fairly stated in a lm aterial respects in retation to the financialstatem ents taken as a w hole. D UCO FE & CO M PA M arksvile,louisiana January 31,2002

6 D ucote & C ompany Cerlified PublicAccountants A loysia C.D ucote,cpa,pc Joan $.Ducote,CPA,PC REPO RT O N CO M PLIANCE AND O N INTERNAL CO NTRO L O VER FINANCIAL REPO RTING BASED O N AN AUDIT O F G ENERAL PURPO SE FINANCIAL STATEM ENT,C~,PERFORM ED IN ACCO RDANCE W ITH G O VERNM ENT AUDITING STANDARDS To the Board ofdirectors Avoye les Progress Action Com m itee,inc M arksviile,louisiana W e have audited the genera lpurpose financialstatem ents ofavoye les Progress Action Com m itee,hlc,for the year ended Septem ber 30,2001,and have issued our reportthereon dated Januanj 31,2002_. W e conducted ourauditin accordance w ith generally accepted auditing standards and the standards applicable to financialaudits contained in Governm entauditinq Standards,issued by the Com ptro lerg eneralofthe United States. Compliance As part of obtaining reasonable assurance about w hether Avoye les Progress Action Com m ittee, Ine. 's financialstatem ents are free ofm aterialm isstatem ent,we perform ed tests ofits com pliance w ith certain provisions of~aws,regulations,contracts and grants,noncom ppiance with which could have a directarid m atedaleffect on the determ ination offinancialstatem ent am ounts. However,providing an opinion on compliance with those provisions was notan objective of ourauditand accordingly,we do notexpress such an opinion. The results ofourtests disclosed no m aterial instanc0s ofnoncom pliance thatare required to be reposed under F In planning and perform ing ouraudit,w e considered Avoyeles Progress Action Com m ittee,inc.'s internal controloverfinancialreporting in orderto determ ine ourauditing procedures forthe purpose ofexpressing ouropinion on the general-purpose financialstatem ents and notto provide assurance on the internalcontrol structure overfinancialrepe rting. O urconsideration ofthe intern alcontroloverfinancialreporting would not necessarily disclose al m a ters in the internal control over financial reporting that m ight be m aterial weaknesses. A m aterialw eakness is a condition in which the design oroperation ofone orm ore ofthe internalcontrolcom ponents does notred uce to a relatively low levelthe risk thatm isstatem ents in am ounts thatwould be m aterialin relation to the financialstatem ents being audited m ay occurand notbe detected within a tim ely period by em ployees in the norm alcourse ofperform ing theirassigned functions. W e noted no maters involving internalcontroloverfinancialreporting and its operation thatwe considerto be m aterial w eaknesses. Americanhlstiluleof ~M embers~ Society of l.ouisiana Certified PublicAccountants Certified t'ublic Accountants 219 NorthWashington~PostOfi cebox 309 ~M ark.~ville,louisiana71351~(318) ~box(318)

7 M em bers ofthe Board Page 2 January 31,2002 This repod is intended solely forthe inform ation and use ofthe Board ofdirectors and the m anagem entof the Avoyelles Progress Action Com m ittee,inc.,state oflouisiana and Federalgranting agencies,and the Legislative Auditorofthe Stale oflouisiana and is notintended to be and should notbe used by anyone otherthan these specified parties. Ducote & Com pany M arksvile,louisiana January 31,2002

8 G ENERAL PURPO SE FINANCIAL STATEM ENTS

9 A VOYELLES PRO GRES~ A CTION COM M ITTEE,INC. M ARKSVILI.E,LO UISIANA Com bined Statem entoffinancialposition ' "A llprogram s Septem ber30,2001 DirectFederal Proaram ndirectfederal Prouram Non-Federal ~ Pronram Totals M em o O nly ASSETS CurrentAssets Cesh and cashequivalents Grantsreceivabta Due from otherprograms $0 30, $4,524 40, $37,237 0~ $41,761 70, Totalcurrentassets Property,Plant& Equipm ent Property,Plant& Equipm ent (netofeccum depr) OtherAssets Deposits TOTAL ASSETS 43,698 8, LIABILITIES AND NET ASSETS CurrentLiabilities Accounts payable Due to etherprograms $15,250 0 $28, $6, $50,486 Totalliabilities ,087 NetAssets Unrestricted 62, , Totalnetassets TOTAL LIABILITIES AND NET ASSETS The accom panying notes ere an integralpartofthisfinancialstatement

10 AVOYELLES PRO G RESS ACTION COM M ITTEE,INC M A RKSVILI.E,LOUISIANA Com bined Statem entofactivltes A llprogram s Forthe YearEnded Septem ber30,2001 DirectFederal Proaram IndirectFederal prooram s Non,Federal Proorsm s Totals M em o O nl UNRESTRICTED NET ASSETS Suppod G~ n~ eam ed le-klndco ntribuuons Othersuppo~ $1,452, ,436 39g $456, $8,874 0-~ $1,017, , TotalSupport Expenses: Program Services: Salaries Fdnge benefits Contractual Travel Space costs Consumable suppties M aterials cost Otherexpenses In-kind contributions 897, ,027 10,365 45,398 29,562 54,963 41, ,127 57gA ,830 21,905 2,379 5, ,882 16,405 76,103 47, ,803 2,952 6, , ,040, ,884 18,914 50,g94 214,273 71,367 11g, , TotalProgram ~ervice s Increase (decrease)in unrestricted netassets (12,913) (26,661) (31,169) (70,703) Netassets,beginning ofyear Netassets,end ofyear 3he accom panying notes are an integralpartofthis financialstatem ent. 7

11 AVOYELLES PRO G RESE;ACTION CO M M ITTEE,INC. M A RKSVILt.E,LO UISIANA Com bined Statem entofcash Flow s A llprogram s Forthe YearEnded Septem ber30,2001 DirectFederal IndirectFederal Non-Federal Totals Prooram s Proaram s Prooram s M em o O n CASH FLOW S FROM O PERATING ACTIVITIES Change In netassets Adjustments to reconcilechangesin netassets to netcash provided by operating activities: Depreciation (Increase)decreaseIn operating assets: Grants receivable Otherreceivable Increase (decrease)inoperating liabilities: Accounts payabte O therpayables $(12,913) $(26,601) $(31.189) $(70,704) 11,940 (22,752) (3,689) 7,176 O 3,497 (22,873) (I,124) 19, ,972 (876) 15,437 (45,625) (5.013) 32, NET CASH PROVIDED BY O PERATING ACTIVITIES t ( CASH FLOW S FROM INVESTING ACTIVITIES Purchases ofproperty and equipm ent NET CASH FLOW S FROM INVESTING ACTIVITIES ). O NET INCREASE (DECREASE)IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS BEGINNING OF YEAR (45,994) (22,945) (26,093) (95,033 43,712 _ , CASH AND CASH EQUIVALENTS END OF YEAR The accom panying notes are an integralpart ofthis financialstatem ent.

12 NOTES TO THE FINANCIAL STATEM ENTS

13 AVO YELLES PRO G RESS ACTIO N CO M M ITTEE,INC, Notes to the FinancialStatem ents Septem ber30,2001 NOTE A -NATURE O F O RGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Nature ofo rganization: The Avoyeles Progress Action Commitee,Inc.(APAC)wasorganized in 1965,its purpose being to serve as a com m unity action agency forthe parish ofavoyeues,louisiana. Its goalis to provide a centralagency to focus on available local,state,federaland private resources to assistthe disadvantage residents ofavoye les Parish. The Avoyeles Progress Action Com m ittee,inc.is a nonprotitorganization as described in Section 501(c)(3)otthe lnterna~revenue Code and is exemptfrom federaland state income taxes. N ature ofa ctivities: The prim ary funding sources and theirpurposes ofapac are Head Start-a fulyear(nine month)program developm entfordisadvantaged,pre-schootch which provides com prehensive early child Idren. The Child Care Food Program operates program a lows APAC to operate a reim bursem entbasis. in conjunction with the Head StartProgram.This m eal program for qualifying students on a cost The Em ergency Food Assistance Program -Adm inistrative Costs and Food Com m odities Program s provide reim bursem entforthe directcosts ofdistribution offood com m odities and the actualcom m odities them selves to needy fam ilies. The W eatherization Assistance forlow Incom e Persons Program provides services to assist needy individuals w ith hom e energy conservation m easures. The Com m unity Services Block G rant and the Em ergency Com m unity Services for the Hom eless Program s help to defray a portion ofapac's adm inistrative costs as we lto provide various program serv ices to the needy. The Low Income Home Energy Assistance Program (LIHEAP)provides assistance to low incom e households Jn the paym entofhom e u/ilily costs during high energy usage periods ofthe year. 30

14 AVO YELLES PRO G RESS ACTIO N CO M M ITTEE,INC. Notes to the FinancialStatem ents (continued) Septem ber30,2001 NOTE A -NATURE O F O RGANIZATIO N AND SIG NIFICANT ACCO UNTING PO LICIES (continued) Nature ofactivities (continued): IndirectFederalPro.qran;s (continued Departm entofsocialservices: The Temporary Assistance forneedy Families Program (TANF)provides assistance to low incom e households in the paym entr>fhom e utility costs. ra This accounts forgeneralfund and state appropriated m onies to coverotheradm inistrative costs ofoperating the APAC agency. During the yearended Septem ber30,2001,apac received no state appropriation m onies. M ethod ofaccounting: The financial statem ents of APAC have been prepared utilizing the accrual basis of accounting. FinancialStatem entpresentation: In 1996,APAC adopted Statement ef FinancialAccounting Standards (SFAS) No. 117, "FinancialStatem ents ofnot-for-prolito rganizations." UnderSFAS No.117,APAC is required to report inform ation regarding its financialposition and activities according to three classes ofnetassets (unrestricted netassets,tem pora rily restricted netassets,and permanently restricted netassets)based upon the existence orabsence ofdonor-imposed restrictions. As perm itted by the new standard,apac has discontinued its use offund accounting and has,accordingly,reclassified its financialstatem ents to presentclasses of netassets. The reclassification had no cum ulative effecton the change in netassets for the yearended Septem ber30,2001. APAC also adopted SFAS No.116,"Accounting forcontributions Received and Contributions M ade,"in In accordance w ith SFAS No.116,contributions received are recorded as unrestricted,tem porarily restricted,orperm anently restricted support,depending on the existence and/ornature ofany donorrestrictions. The adoption had no cum ulative effect on net assets at the date of the adoption. In addition, APAC has not received any contributions with donor-im posed restrictions that w ould result in tem porarily or perm anently restricted netassets. Cash Equivalents: Cash equivalents consistofshort-term,highly liquid investm ents w hich are readily convertible into cash within ninety (90)days ofpurchase. Supportand Revenue: G rantrevenues are recognized as fo low s Forentitlem entgrants in which unexpended funds are subjected to future reprogramming,the entire am ountelthe grantaward is recognized overthe life ofthe grant. In cases where such grants span the Agency's fiscalyear end,revenues are recognized in an am ounl equalto expenditures in tile initialportion ofthe grant,and any excess is recognized in the period in w hich the grantterm inates. 3]

15 AVO YELLES PRO G RESS ACTIO N CO M M ITTEE,INC Notes to the FinancialStatem ents (continued) Septem ber30,2001 NOTE A -NATURE O F O RG ANIZATIO N AND SIGNIFICANT ACCOUNTING PO LICIES (continued) Supportand Revenue (continued): In cases ofcostreim bursem entgrants where unexpended funds revertto the grantoratthe conclusion of the grant period,grant revenues are recognized in an am ount equalto expenditures,up to the m axim um am ountofthe grantawarded. n the case ofunrestricted grants,the entire am ountofthe grantaward is recognized as revenue upon receipt. Expenditures: Purchases ofconsum ables and supplies are recorded as expenditures in the grantperiod when purchased. Should grantfunding cease,such equipm entcould be returned to the grantor. Because ofthese expenditures,a perpetualrecord is m aintained on those assets acquired. Totals -M em o O nly The totalcolum ns on the statem ents are captioned M em o Only to indicate thatthey are presented only to facilitate financialanalysis. Data in these colum ns does notpresent financialposition orresults ofoperations,in conform ity w ith generaly accepted accounting principles. N eitheris such data com parable to a consolidation. NOTE B -PRO PERTY AND EQ UIPM ENT Property and equipm entacquired by APAC are considered to be owned by APAC. However, federalfunding sources m ay m aintain an equitable interestin the property purchased w ith grant m onies,as w e las the rightto determ ine the use ofany proceeds from the sale olthese assets. The equitable interest m aintained by the grantor agency decreases as the age ol the asset increases. As ofseptem ber30,2001,alproperty and equipm entowned by APAC has been acquired with grantm onies. Property and equipm entconsistofthe fo low ing: Balance 9/30/00 Additions Deletions Balance 9/30/01 DirectFederalProgram s IndirectFederalProgram s Non-FederalProgram s $321,890 $25,556 25,791 1, $ $347,446 26, Totals ~, 347,681 26,70Q_ ,381 Accum ulaled Depreciation ~306,2._.87_.) =~f!5~437j (321 Z~z24j NetProperty and Equipm ent $52,657 12

16 AVO YELLES PRO G R ESS A CTIO N CO M M ITTEE,INC Notes to the FinancialStatements (continued) Septem ber30,2001 NOTE B - PROPERTY AND EQUIPMENT (continued) SFAS No.93,effective forfiscalyears beginning afterm ay 15,1988,requires the recognition of depreciation in the financialstatem ents ofa non-profitorganization. This statem entprovides that the nonprofit organization adopt accounting changes needed to conform 1o the statem ent's provisions. Effective forthe yearended Septem ber30,2001,apac has adopted the provisions ofsfas No 93. D epreciation is calculated using the straight-line m ethod w ith assets lives of5 to 10 years. NOTE C -DONATED SERVICES,M ATERIAL,AND FACILITIES Valuation ofin-kind services is m ade atcurrentm arketrates forservices,atnot m ore than the federalm inim um wage plus applicable fringe costs. Donations of m aterials and facilities use are valued at the estim ated fair m arket vatue of the m aterialorfacility atthe tim e ofthe donation. NOTE D -INTERPRO G RAM REC EIVA BLE!S/PAYA BLES As ofseptem ber30,2001,the fo lowing interprogram receivables/payables existed Receivable Payable Non-FederalProgram : G eneralfund $ 2,000 $ 4,712 DirectFederalProgram Headstad ndirectfederalprogram Child Care Food TANF W eatherization ,889 2, Totals $ J0,601 =$_

17 AVO YELLES PRO G R ESS ACTIO N CO M M ITTEE,INC Notes to the FinancialStatements (continued) Septem ber30,2001 NOTE E -G RANTS RECEIVABLE As ofseptem ber30,2001,grants receivable w as com posed of Child Care Food: State oflouisiana LIH EAP: DeptofAgriculture Head Start: DeptofH ealth & Hospitals CSBG : State oflouisiana TANF: State oflouisiana W ealherization : Dept.ofEnergy Total $ 12, , ,188 ~ 584 NOTE F -SUM M ARY O F G RANTS APAC was prim arily funded through the following grants forthe yearended Septem ber30,2001 Fundinq Source DirectFederalProgram s: Head Start Program Year(s) Covered Recognized Suppod 7/1/00-6/30/01 $1,452,770 7/1/01-6/30/02 ndirectfederalprogram s: Com m unity Services Block G rant 1/1/00-12/31/00 100,538 1/1/01-12/31/01 DeptofEnergy W ealherization LIHEAP Energy Assistance Program 4/1/09-3/31/01 4/1/01-3/31/02 4/1/00-3/31/01 4/1/01-3/31/ ,512 C hild and AdultFood C are Program 10/1/00-9/30/01 Tem porary Assistance forneedy Fam ilies Program ,398 Corporate G rants TotalG rants N/A 8~ _ $L91. 7,813 Som e ofthe program s have program years thatoverlap the Agency's fiscalyear. In those cases revenue and expenditures are recognized according to the Agency's fiscalyear. 14

18 AVOYELLES PROGRESS ACTION COMMI'i-rEE,INC Notes to the FinancialStatements (continued) Septem ber30,2001 NO TE G -BOARD M EM BERS PER DIEM Board M em bers ofthe Avoye les Progress Action Com m ittee have notreceived perdiem orany othertype ofcom pensation during this auditperiod. NOTE H -EM PLO YEE BENEFIT PLAN APAC established a defined contribution salary deferralplan,covering em ployees ofthe agency. The plan has been adopted inaccordance with Section 403(B)ofthe InternalRevenue Code. Underthe plan,the APAC contributes a discretionary m atching contribution equalto a percentage ofthe am ountofthe salary reduction elected by the em ployee,up to 5% ofcom pensation. The em ployee m ay electa salary reduction up to the m axim um annuala lowable am ountestablished by applicable InternalRevenue Code Sections. During the yearended Septem ber30,2001,apac contributed $32,364,as the agency's m atch,to the plan. NOTE I- CO M M ITM ENTS AND CO NTING ENCIES APAC leases various buildings on a one-year,renewable basis. The buildings are used prim arily forcsbg and Head Start. At Septem ber 30,2001,APAC is involved in three lawsuits,two claim ing racialand/or sexual discrim ination and the otherclaim ing paym entforaccum ulated leave. In a lcases legalcounsel1or APAC has indicated thatthe outcom e ofthe litigation is uncertain atthe presenttim e,and the potentialclaim s againstapac notcovered by insurance are uncertain atthis tim e,butdoes not expecttotaldam agesto exceed $105,000. NOTE J - SUBSEQ UENT EVENTS O n Novem ber 8,2001,bids w ere taken forthe construction ofthe APAC Adm inistration Building. The contractwas awarded to Scalan Contractors,Inc.forthe am ountof$136,478. Financing for the projectisbeing provided by a construction loan from Union Bank. Proposed terms forthe loan are a tw enty-yearloan at7.75% w ith no points. Atthe Novem ber8,2001 m eeting,the Board approved the rentalofa facility in the Lafargue area. APAC Headstartprogram wilopen a new Center,"Little Bo Peep",in this facility forthe schoolyear.

19 SU PPLEM ENTA RY IN FO RM ATIO N 16

20 N DIR EC'I'FED ERA L PR O G RA M S Departm entofhealth & Hum an Services: The Com m unity Services Block G ranthelps to defray a portion ofapac's adm inistrative costs as w elto provide various program services to the needy. Departm entofenergy: The W eatberization Assistance forlow Incom e Persons Program provides services to assistneedy individuals w ith hom e energy conservation m easures. The LIHEAP Program assists needy individuals with hom e energy paym ents. Departm entofagriculture: The Child and AdultFood Care Program operates in conjunction with the Head Start Program.This program a lows APAC to operate a food program forqualifying students on a costreim bursem entbasis. Departm entofsocialservices: The Tem porary Assistance forneedy Fam ilies Program provides assistance to the needy in the paym entofhom e utility costs. J.?

21 AVOYELLES PRO G RESS ACTIO N COM ITTEE,INC M AR KSVIL LE,LO UISIA NA Com bining Statem entoffinancialposition IndirectFederalProgram s Septem ber30,2001 DeptofEnergy LIHEAP Energy Child Care Tem porary CBSG W eatherizauon Assista nce Food Assistance for Totals Program Progra m Program _ ~ Needy Families Memo Only ASSETS CurrentAssets Cash and cashequivalents Grants receivable Due from otherprograms $0 5,550 O $402 2, $2,882 8,847 0 $1,240 12, $0 11,188 O $4,524 40, Property,Plant& Equipm ent Property,Plant& Equipment (netofaccum depreciation) 8, O 873 O 8,983 TOTAL ASSETS LIABILITIES AND NET ASSETS CurrentLtab llties Accounts payable, $2,950 $1,265 $8,350 $6,218 $B,172 $28,955 Due to otherprog ram s ,889 2,000 5,689 Totalliabilities 2,950 (1,265) _ 12,108 10,172 34,844 NetAssets Unrestricted 10,689 6,432 3,379 2,798 1,017 24,314 Totalnetassets 10,689 6,432 3,379 _ 2,798 1,017 24,314 TOTAL LIABILITIES & NET ASSETS $13,639 $7,697., ~11,729,~14r908 ~;11I188

22

23 ~ o o o ~'o ~o e ~ ~o g

24 A PPEND IX A R EPO RTS R EQ UIR ED BY OFFICE OF MANAGEMENT AND BUDGET (OMB)CIRCULAR The fo lowing pages contain reports on the Schedule ofexpenditures offederalawards and on com priance with requirem entsapplicable to each MajorProgram and internalcontrotovercompliance in accordance with O M B C irculara

25 D ucote C ompany AloysiaC.Ducote,CPA,PC loans.ducote,cpa,pc REPO RT O N SCHEDULE O F EXPENDITURES O F FEDERAL AW ARDS To the Board ofdirectors Avoyeles Progress Action Com m itee,inc M arksvile,louisiana W e have audited the general-purpose financialstatem ents ofthe Avoyelles Progress Action Com m ittee,inc, forthe yearended Septem ber30,2001,and have issued ourreportthereon dated January 31,2002. O ur auditwas perform ed forthe purpose ofform ing an opinion on the general-purpose financialstatem ents taken as a whole. The accom panying schedule of expenditures of federalawards is presented for puq~oses of additional analysis as required by O M B CircularA-133 and is not a required partofthe general-purpose financial statements. Such inform ation has been subjected to the auditing procedures applied in the auditofthe genera l-purpose financialstatem ents and,in ouropinion,is tairly stated,in alm atedalrespects,in relation to the general-purpose financialstatem ents taken as a w hole. Ducote & Com pany M arksvile, Louisiana January 31~ Americanhtstituteof ~M embers~ Society of l~guisiana Certified PublicAccountants Certified Public Accountants 219 North Washington ~PostOffice Box 309 ~M arksville,louisiana 71351~f318) ~Far(318)

26 FederalG rantor/ Pass-Through G rantor/ Pronram Nam e U.S.Deeartm entofaariculture AVOYELLES PROG RE'SS ACTIO N COM M ITTEE,INC M ARKSVILLE,LO UISIANA Schedule ofexpenditures o1federalaw ards ForYearEnded Septem ber30,2001 Federal CFDA.N~m ber Local Program Num ber Program Expenditures Passed through the State of Louisiana,Deptof: Education: Child and AdultFood Care Program CACFP $ 115,358 Passed through the State of Louisiana,D ept.of: Agriculture: Em ergency Food AssistProg-Adm in EFAP04 2,085 U.S.Departm entofener~ly Passed through the State of Louisiana,Dept.of: SocialServices: W eatherization Assistance for Low-Incom e Persons U.S.DePartm entof H ealth and Hum an Services DirectProgram : Head Start Passed through the State oflouisiana, D eptofsocialservices: Low Incom e Hom e Energy Assistance Paym ents CFM S * 2, CFM S Passed through the State oflouisiana, DeptofLabor: Com m unity Services Block G rant N ,202 State oflouisiana, DeptofSocialServices: Tem porary Assistance forneedy Fam ilies N/A TotalFederalExpenditure Aw ards 34,382 $ 2,528,290 Denotesa majorprogram 23

27 AVOYELLES PRO GRI'SS ACTIO N CO M M ITTEE,INC Notes to the Schedule of Expenditures offederalaw ards Septem ber30,2001 NOTE A - SIGNIFICANT ACCO UNTING PO LICIES The accom panying schedule of expenditures of federalawards of the Avoyeles Progress Action Com m ittee,inc.,has been prepared utilizing the accrualbasis ofaccounting. The inform ation presented in this schedule is presented in accordance with the requirem ents of O M B CircularA-133,Audits of States,LocalGovernm ents,and Non-ProfitOrganizations. Therefore,som e am ounts presented in this schedute m ay differfrom am ounts presented,orused in,the preparation ofthe generalpurpose financial statem enls. NOTE B - SUBRECIPIENTS O f the federalexpenditures presented in the schedule, Avoye les Progress Action Com m ittee, Inc provided no federalawards to subrecipients.

28 D ucote & C ompany Certified Public A e A laysia C.D ucote,cpa,pc loan $.Ducote,CPA,PC REPO RT O N CO M PLIANCE W ITH REQ UIREM ENTS APPLICABLE TO EACH M AJO R PROGRAM AND INTERNAL CONTROL OVER CO M PLIANCE IN ACCO RDANCE W ITH O M B CIRCULAR A-133 To the Board ofdirectors Avoye les Progress Action Com m itee,inc M arksvile,louisiana Compliance W e have audited the com pliance of the com pliance requirem ents described in the C~mpliance Supplem entthat are applicable to Septem ber30,2001. Avoyeles Progress Action Avoyo les Progress Action Com m itee, Inc with the types of J.S.O fice ofm anagem entand Bud~let(OM B~CircularA-133 each ofits majorfederalprograms forthe year ended Comm itee,inc.'s m ajorfedera lprograms are identified in the sum ra ary ofauditor's results section ofthe accom panying schedule offindings and questioned costs. Compliance with the requirem ents oflaws,regulations,contracts and grants applicable to each ofits m ajor federalprogram s is the responsibility ofavoye les Progress Action Com m ittee,inc.'s m anagem ent. O ur responsibility is to express an opinion on Avoyel~es Progress Action Com m ittee,inc.'s com pliance based on ouraudit. W e conducted our auditof com pliance in accordance with genera ly accepted auditing standards;the standards applicable to financ ial audits contained in issued by the CircularA-1338, ComplrolerGeneralofthe United States;end Office ofmanagementand Budget(OMB) Audits ofstate and LocalG overnm ents,and Non-ProfitO rganizations. Those standards and O M B C ircular A-133 require that we plan and perform the audit to obtain reasonable assura nce about w hether noncom pliance w ith the types ofcom pliance requirem ents referred to above thatcould have a directand materialefecton a majorfederalprog ram occurred.an auditincludes examining,on a testbasis,evidence aboutavoyeles Progress Action Com m ittee,inc.'s com pliance with those requirem ents and perform ing such otherprocedures as we considered necessary in the circum stances. W e believe thatourauditprovides a reasonable basis forouropinion. O urauditdoes notprovide a legaldeterm ination on Avoyeles Progress Action C ora m itlee,inc.'s com pliance with those requirem ents. In our opinion, Avoyales Progress Action Com m itee, Inc com plied, in a lm aterial respec ts, with the requirem ents refe red to above thatare applicable to each ofits majorfederalprograms forthe yearended Septem ber30,2001. The m anagem entofthe Avoye les Progress Action Com m itee, Inc is responsible for establishing and m aintaining e fective internalcontrolovercom pliance with requirem ents oflaws,regulations, contracts and grants applicable to federalprogram s. In planning and perform ing our audit,w e considered Avoyeles Progress Action Com m ittee,inc.'s internalcontrolovercom pliance with requirem ents thatcould have a direct and materialeffecton a majorfederalprogram in orderto determine ourauditing procedures forthe purpose of expressing our opinion on com pliance and to test and report on internalcontrolover com pliance in accordance with O M B CircularA-133. American btstituteof ~M embers~ Society of LouiMana Certifi ed PublicAccountants Certified Public"Accountants 2J9 North Washington ~PostOffice Box 309 ~M arksville,louisiana 71351~(318) ~b'a~[318)

29 Board ofdirectors Page 2 JanuanJ 31,2002 O urconsideration ofthe internalcontrolovercom pliance would notnecessarily disclose alm atters in the internalcontrolthatm ightbe m aterialweaknesses.a m aterialweakness is a condition in which the design or operation ofone orm ore ofthe internalcontrolcom ponents does notreduce to a relatively low levelthe risk thatnoncom pliance with applicable requirem ents oflaws,regulations,contracts and grants thatwould be m aterialin relation to a majorfederalprogram being audited may occurand notbe detected within a timely period by em ployees in the norm alcourse ofperform ing theirassigned functions. W e noted no m ailers involving the internalcontrolovercom pliance and its operation thatwe considerto be m aterialw eaknesses. This reportis intended solely totthe inform ation and use 01the Board otdirectors and the m anagem entof the Avoye les Progress Action Com m ittee,inc.,state oflouisiana and Federalgranting agencies,and the Legislative Auditoro the State otlouisiana and is notintended to be and should notbe used by anyone otherthan these specified padies. M arksvile,louisiana January 31,

30 AVOYELLES PRO GRESS ACTIO N CO M M ITTEE,INC M ARKSVILLE,LO UISIANA Schedule offindings and Q uestioned Costs Forthe YearEnded Septem ber30,2001 Section I- Sum m ary ofauditors'results FinancialStatem ents Type ofauditors'reportissued nternalcontroloverfinancialrepotting: Materialweakness(es)identified? Reportable condition(s)identified not Considered to be m aterialweakness(es) Unqualified yes x no Noncom pliance m aterialto financialstatem ents noted? yes x no FederalAwards nternalcontroloverm ajorprogram s: Materialweakness(es)identified? Reportable condition(s)identified not Considered to be materialweakness(es) Type ofauditors'reporlissued on com pliance Form ajorprograms: A ny auditfindings disclosed thatare required To be reported in accordance with CircularA-133,Section.510(a) rlentifjeation ofm aiordroaram s yes yes Unqualified yes x no x none reported x no C FDA Num ber N am e offederalproaram orc luster Head Starl D o larthreshold used to distinguish betw een Type A and Type B program s Auditee qualified as low-risk auditee $300,000 x yes no 2"/

31 AVOYELLES PRO GRI-SS ACTIO N CO M M ITTEE,INC M ARKS VLLE,LO UISIANA Schedule offindings and Questioned Costs (continued) Forthe YearEnded Septem ber30,2001 Section II-FinancialStatem entfindings There are no findings applicable to internalcontroloverfinancialreporting and com pliance Section III- FederalAw ard Findings and Q uestioned Costs There are no findings and questioned costs applicabre to federalawards 28

32 AVOYELLES PROGRI-SS ACTION CO M M ITTEE,INC M ARKSVILLE,LO UISIANA Sum m ary Schedule ofpriorauditfindings YearEnded Septem ber30,2001 RefNo. FiscalYear Finding Initially O ccurred Corrective Action Taken (Yes,No, PartiaUv) Planned Corrective Action/ PartialCorrective Action Taken Section I- InternalControland Com pliance M aterialto the FinancialStatem ents None Section II- InternalControland Com pliance M aterialto FederalAw ards None Section III- M anagem entletter M LO0-01 9/30/00 Under-secured bank deposits Yes N/A 29

33 AVOYELLES PRO GRI-'SS ACTIO N CO M M ITTEE,INC M ARKSVILLE,LO UISIANA Corrective Action Plan forcurrentyearauditfindings YearEnded Septem ber30,2001 Description offindina Corrective Action Planned Nam e O f ContactPerson Anticipated Com pletion Date Section I- InternalControland Com pliance M aterialto the FinancialStatem ents None Section II- InternalControland Com pliance M aterialto FederalAw ards None Section II- M anagem entlettercom m ents None 30