GULFCOASTEACHING. JUNE30,201and20. "~-~'~elaw,thisreportis

Transcription

1 "~"0/:3~ GULFCOASTEACHING (ANONPROFITORGANIZATION) FAMILYSERVICES,INC. SUPLEMENTARYINFORMATION FINANCIAl.REPORTAND JUNE30,201and20 Under docunl(:i,l.b'p"ilk',',~3c>fih5!;~(:~1:u,t thentityi,ndr~:r~:,;,:c;!,~:.t~i,i;blici,fic "~-~'~elaw,thisreportis reportis~,'a:,id;~;(':ri~i:i:icins,-ct;t~;'~ct Rougeoficeofti,(,l~,i~:!,~:W,:~'ditorarid, apropriate,atileoficeotheparishclerk ReleaseDatedANI6?I)~-

2 GUI.FCOASTEACHINGFAMILYSERVICES,INC TABLEOFCONTENTS JUNE30,201and20 Page INDEPENDENTAUDITOR'SREPORTONTIlEFINANCIALSTATEMF,NTS FINANCIALSTATEMENTS StatclnentsofFinancialPosition StatementsofActivities StatementsofChangesinNetAsets -NotestoFinancialStatements StatementsofCashFlows INDEPENDENTAUDITOR'SREPORTONTIlESUPLEMENTARY INFORMATION 20 SUPLEMENTARYINFORMATION SCItEDU1,ES Schedule1-CombinedStatementofRevenueandExpensesByCostReport Grouping Schedule2-StatementofExpensesbyProgram/Fund-YearEndedJune30,20I 21 Schedule3-StatementofExpensesbyProgram/Fund-YearEndedJune30, SPECIALREPORTSOFINDEPENDENTAUDITOR ReportonComplianceandonInternalControlOverFinancialReporting BasedonanAuditofFinancialStatementsPerformedinAcordance WithGovernmenlAuditingStandards ReportonCompliancewithRequirementsAplicabletoFachMajorProgram AndInternalControlOverComplianceRequiredbyOMBCircularA SCIEI)ULES Schedule1-Sumal3,ofAuditResults Schedule2-ReporlableConditions-FinancialStatements-CurentYear SchedulesofFindingsandQuestionedCosts Schedule3-ReportableConditions-MajorFederalAwardProgramsAudit Schedule4-SumaryofPriorYear'sAuditFindings Schedule5-Management'sCorectiveActionPlanforCurcntYearFindings Schedule6-ScheduleofExpendituresofFederalAwardsfortheYearEndedJune ,201andRelatedNotes 6-67

3 l/bernard&franks ACORPORATION(IFCERTIFIEDPUBLICACOUNrANTS NICHOLASW.LAFRANZIl,C.P.A. JAMESt.WHITE,C.P.A. INDEPENDENTAUDITOR'SREPORTONTHEFINANCIALSTATEMENTS 1"otheBoardofDirectors GulfCoastTeachingFamilyServices,lnc NewOrleans,Louisiana WehaveauditedtheacompanyingstatementsofinancialpositionofGulfCoastTeachingFamily.Services,inc.(anonprofitcorporation),asofJune30,201and20,andtherelatedstatementsof activities,changesinetasets,andcashflowsfortheyearsthenended.thesefinancialstatementsare theresponsibilityofgulfcoastteachingfamilyservices,ine.'smanagement.ouresponsibilityisto expresanopiniononthesefinancialstatementsbasedonouraudits. WeconductedourauditsinacordancewithauditingstandardsgeneralyaceptedintheUnitedSlates ofamericandthestandardsaplicabletofinancialauditscontainedingovernmentauditing Standards,isuedbytheComptrolerGeneraloftheUnitedStates.Thosestandardsrequirethatwe planandperformtheauditobtainreasonableasuranceaboutwhetherthefinancialstatementsare freofmaterialmistatement.anauditincludesexamining,onatestbasis,evidencesuportingthe amountsandisclosuresinthefinancialstatements.anauditalsoincludesasesingtheacounting principlesusedandsignificantestimatesmadebymanagement,aswelasevaluatingtheoveral financialstatementpresentation.webelievethatourauditsprovideareasonablebasisforouropinion. Inouropinion,thefinancialstatementsreferedtoabovepresentfairly,inalmaterialrespects,the financialpositionofgulfcoastteachingfamilyservices,inc.asofjune30,201and20,andthe changesinitsnetasetsanditscashflowsfortheyearsthenendedinconformitywithacounting principlesgeneralyaceptedintheunitedstatesofamerica. InacordancewithGoverLunentAuditingStandards,wehavealsoisuedoureportdatedDecember financialreportingandourtestsofitscomp iancewithcertainprovisionsoflaws,regulations,contracts 2,201,onourconsiderationofGulfCoastTeachingFamilyServices,lne.'sinternalcontrolover andgrants."/'hatreportisanintegralpartofanauditperformedinacordancewithgovernment Auditin~Standardsandshouldbereadinconjunctionwiththisreportinconsideringtheresultsofour audit. MEMBERS:AMERICANINSrlTUTEOFCERrlFIEBPUBLICACOUNTANrS;SOCIETYOFLOUISIANACERtIFiEDPUBLICACOUNTANTS 4141VETERANSBLVD.,SUITE313,METMRIE,LA702IPHONE;:(504) FAX:(504)

4 Ourauditwasperformedforthepurposeoforminganopimononthebasicfinancialstatementsof GulfCoastTeachingFamilyServices,Inc.takenasawhole.Theacompanyingscheduleof expendituresofederalawardsispresentedforpurposesofaditionalanalysisasrequiredbyu.s. OficeofManagementandBudgetCircularA-13,AuditsofStates,LocalGovernments,andNon- ProfitOrganizations,andisnotarequiredpartofthebasicfinancialstatements.Suchinformationhas bensubjectedtotheauditingproceduresapliedintheauditofthebasicfinancialstatementsand,in ouropinion,isfairlystated,inalmaterialrespects,inrelationtothebasicfinancialstatementstakenas awhole. December2,201

5 ASETS GULFCOASTEACHINGFAMILYSERVICES,1NC STATEMENTSOFINANCIALPOSITION JUNE30,201and20 CURENTASETS Cashandcashequivalents lnvesmwntsecurities Receivables: l)rogram, Alowancefordoubtfulacounts Other Prepaidexpenses Totalcurentasets I'ROPERTYANDEQUIPMENT-ATCOST l,and Buildingandimprovements Software l,easeholdimprovements I"umitureandequipment Transporlationequipment l,easedequipmentundercapitalizedleases Lesacumulatedepreciationandamortization I)EPOSITS Totalasets Senotestofinancialstatements June30,201June30,20 $51,472 19,482 2,231,909 (130,709) 28,530 2,129,730 8,5 $2,89,239 $247, , ,815 91, ,714 89,497 13,783 $2,07,431 (61,619) $1,415,812 $523,950 13,246 2,078,7 (130,975) ,972,838 78,048 $2,68,082 $247, ,849 81,753 97, ,897 86,926 13,783 $2,085,49 (651,263) $1,434,236 $9,535$43,419 $4,314,586$4,165,737

6 labilitiesandnetasets June June30,20 CURENTLIABILITIES Notespayable Curentportionofobligationsundercapitaleases 41,936 Curentportionofmortgagenotespayable. 321 $45,92 Acountspayable 28,87 3,856 Acrucdliabilities 439, , , ,535 31,149 Totalcurentliabilities $1,214,017$1,492,046 LONG-TERMLIABILITIES,LESCURENTPORTION Mortgagenotespayable $498,25$526,126 COMITMENTSANDCONTINGENCIES._ $- UNRESTR1CTEI)NETASETS $2,602,314$2,147,565 Totaliabilitiesandnetasets $4,314,586$4,165,737

7 GI_JI,FCOASTEACItlNGFAMILYSERVICES,INC STATEMENTSOFACTIVITIES FORTIlEYEARSENDEDJUNE30,201AND20 UNRESTIlCTIgDNETASETS REVENUES,GAINSANDSUPORT Grantsandfesforservices l)onations Interestincome Otherincome Totalrevenues,gainsandsuport EXPENSES: PROGRAMSERVICES: Conmnitygrouphomes Fostercare Personalcareatlendanls Supervisedindependentliving Respiteservices Others,ilotal Tolalprogramexpenses ADMINISTIATIVEANDGENERAL Totalexpenses INCREASEINUNRESTRICTEDNETASETS NETASETS,BEGINING NETASETS,ENI)ING Senotestofinancialstatements 201 $20,019, ,528 60,5 19, $18,852,68 124,781 39,763 81,74 $20,372,678$19,098,986 $495,12 1,985,547 5,359,748 4,470,190 3,295,648 1,481,907 $496,676 2,153,012 5,394,727 4,239,28 2,964,842 1,10,651 $17,08,152$16,349,136 $2,829,7 $19,917, ,749 $2,601,801 $18,950, ,049 $2,147,565$1,9,516 $2,602,314$2,147,565

8 GU1.FCOASTEACHINGFAMILYSERVICES,INC FORTHEYEARSENI)EDJUNE30,201AND20 STATEMENTSOFCHANGESINETASETS Unrestrictednetasets,begining&year $2,147, $1,9, Increaseinunrestrictednetasets ,049 Unrestrictednelasets,endofyear $2,602,314$2,147,565 Senotestofinancialstalemenls

9 GULFCOASTEACHINGFAMILYSERVICES,INC FORTHEYEARSENDEDJUNE30,201AND20 STATEMENTSOFCASHFLOWS CASltFLOWSFROMOPERATINGACTIVITIES Increaseinunrestrictednetasets Adjustmenlstoreconcileincreaseinunrestrictednetasets tonetcashprovidedbyoperatingactivities: $454, ,049 I)cprciation Changesinasetsandliabilities: 150, ,305 (Increase)decreaseinprogramreceivables (Increase)decreaseinothereceivables 0ncrease)decreaseinprepaidexpenses (153,398) (3,494) 150,942 Increase(decrease)inacountspayable (10,507) 31,943 5,73 andacruedliabilities Netcashprovidedbyoperatingactivities $169,501 (268,246) 176,0 704,012 CASIFLOWSFROMINVESTINGACTIVITIES Increaseininvestmentsecurities,net l'urchasesofpropertyandequipment,netofnoncashitems Procedsfromsalesofautomobiles $(6,236) (131,973) (13,034) (5,689) Deposits(made)returned _ 3,84 (34,439) 5,325 Nelcashusedininvestingactivities $(104,325)(!67,837) CASIFLOWSFROMFINANCINGACTIVITIES Procedsfromnolespayable Principalpaymentsonotespayable 92,72 Principalpaymentsonobligationsundercapitaleases I'rincipalpaymentsonmortgagenotespayable (96,758) (30,13) (3,535) 81,683 (65,175) (42,856) (3,856) NETINCREASEINCASIt Netcashusedinfinancingactivities (37,654) (30~204) ANDCASlEQUIVALENTS $27,52$505,971 CASIANDCASIEQUIVALENTS Beginingofyear 523,950 Endofyear 51, ,950 17,979 (CONTINUED)

10 GULFCOASTEACHINGFAMILYSERVICES,INC STATEMENTSOFCASlFLOWS ]'ORTHEYEARSEN1)F.DJUNE30,201AND20 (CONTINUED) SUPLEMENTAI~SCItEDULEOFNON-CASINVESTING ANDFINANCINGACTIVITIES (;asiapaymenls Inlerest $45,098$51,40 Seholestofinancialstatements

11 GULFCOASTEACHINGFAMILYSERVICES,INC NOTESTOFINANCIAl,STATEMENTS JUNE30,201AND20 Note1-ORGANIZATION GulfCoastTeachingFamilyServices,Inc.isanonprofitcoq~orationorganized exclusivelyforcharitable,religious,educationalandscientificpurposes.thc Organizationmaintainsgrouphomes,childandfamilycentersandotherelated programsfortileyouthandtheirfamiliesandprovidesaprogram,whichwilgivethe youngpeopleandtheirfamiliesanoportunitytobecomenormalized,independent, productiveandrespectedcitizensofthecomunity.theseservicesareprovidedintile SouthLouisianarea. TheOrganization'smajorprogramsincludethefolowing ProfesionalCareProgram-Thisprogramprovidesfosterhomesintheconunityfor abused,neglectedortroubledchildrenandadolescents,emotionaldisturbedchildren andchildrenandadultswithphysicaland/ormentaldisabilities. SuportedIndependentLiving-TheSILprogramworkswithindividualswithmental and/orphysicaldisabilitiesandforolderadolescentsinnedofextrasuport, asistanceandmonitoring. RespiteServices-RespiteServicesareoferedtoparenlswithchildrenoradultswith physical/mentalilnesandisdesignedtofereliefromthedemandingcarefortheir specialneds. PersonalCareAtendantServices-PCAprovidesasistanceforadultsorchildrenwith mentalorphysicaldisabilitiesinperformingtheactivitiesofdailylivingthathey mightotherwisenotbeabletoperformalone. ConmnilyGroupHomes-Aresidentialtreatmentfacilityformentalyimpaired adults. Note2-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES Asumaryoftilesignificantacountingpoliciesusedinthepreparationofthe acompanyingfinancialstatementsfolows: 1.BasisofAcouningandFinancialSla(ementPresentation Theacompanyilagfinancialstatementsarepresentedontheacrualbasisof acountinginacordancewithgeneralyaceptedacountingprinciples.

12 GULFCOASTEACHINGI:AM1LYSERVICES,INC NOTESTOFINANCIALSTATEMENTS(CONTINUED) JUNE30,201AND20 Note2-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) TheOrganizationfolowsthefinancialstatementpresentationrecomcndcdby StatementofFinancialAcountingStandards(SFAS)No.17,FinancialStatements ofnot-for-profitorganizations.undersfasno.17,tileorganizationisrequired toreportinformationregardingitsfinancialpositionandactivitiesacordingtothre clasesofnetasets(unrestrictednetasets,temporarilyrestrictednetasets,and permanentlyrestrictednetasets)baseduponthexistenceorabsenceofdonorimposedrestrictions.inadition,theorganizationisrequiredtopresentastatement ofcashflows.atpresent,aloftheorganizationsfundsareincludedintile Unrestrictedcategory. TheOrganizationalsofolowstherecomendationsincludedinSFASNo.16, AcountinaforContributionsReceivedandContributionsMade.Inacordancewith SFASNo.16,contributionsreceivedarerecordedasunrestricted,orpermauently restrictedsuport,dependingontheexistenceand/ornatureofanydonor restrictions.asofjune30,201and20,theorganizationhasnotreceivedany contributionswithdonor-imposedrestrictionsthatwouldresultintemporarilyor permancnflyrestrictednetasets. 2.UseofEstimates Thepreparationofinancialstatementsinconforinitywithgeneralyacepted acountingprinciplesrequiresmanagementlomakestimatesandasumptionsthat afectcertainreportedamountsandisclosures.acordingly,actualresultscouldifer fromthosestimates. 3.IncomeTaxes TheOrganizationisanonprofitorganizationandexemptfi'omincometaxesunder Section501(c)(3)oftheInternalRevenueCodeandclasifiedbythelntenmlRevenue Codeasotherthanaprivatefoundation. 4.CashandCashEquivalents Forpurposesofthestatementofcashflows,theOrganizationconsiderscashonhand andemandepositstobecashequivalents.

13 GULFCOASTEACHINGFAMILYSERVICES,INC NOTESTOFINANCIALSTATEMENTS(CONTINUED) JUNE30,201AND20 Note2-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) 5.AlowanceForDoubtfulAcounts TheOrganizationhasestablishedanalowancefordoubtfulacountsinordertoalow balancesatjune30,201and20. forcorectionsandbilingadjustmentsthatmayberelatedtoacountsreceivable Actualbilingadjustmentsandbadebts,ifany,arechargedtothespecificfundoi" programsasdetermined.badebtexpensefortheyearsendedjune30,201and20 was$57,737and$124,192,respectively. 6.DepreciationandAmortization Properlyandequipmentarecariedatcost.Depreciationandamortizationare calculatedusingthestraight-linemethod.depreciablelivesformostasetsintheclas areasfolows:buildings,20years;leaseholdimprovements,10yearsorleasetcmaif shorter;furnitureandfixtures,10years;computersandrelatedequipment,3to5 years;transportationequipment,3to5years.whenasetsareretiredordisposedof, thecostandrelatedacumulatedepreciationareremovedfromtheacounts,andany resultingainorlosisreflectedinincomefortheperiod.thecostofmaintenanceand repairsischarged1oincomeasincured;significantrenewalsandbetermentsare capitalized.donatedpropertyiscapitalizedatfairvalue.depreciationandamortization expenseamountedto$150,397and$141,305fortheyearsendedjune30,201and 20,respectively. 7.CapitalLeases Forfinancialreporting,theOrganizationhascapitalizedcertainleasedequipment.The statementofinancialpositionreflectsalcapitalizedleasequipmentasasetsand obligationsundercapitalease.thecapitaleaseobligationsarerecordedatimpreselb valueoftidefutureminimumleasepaymentsdiscountedatheinterestrateimplicitin eachlease. EmployeVacationBenefits Employevacationbenefitsareacruedandexpensedintheperiodearnedbytide employe. 10

14 GULFCOASTEACINGFAMILYSERVICES,]NC NOTESTOFINANCIALSTATEMENTS(CONTINUED) JUNE30,201AND20 Note2-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) 9.ProgramRevenues Programrevenuesearnedundereimbursementypecontractsarerecordedasrevenues intheapropriateprogramwhentherelatedexpensesareincured. Programrevenuesearnedonfeforserviceandper-diemcontractsarerecordedas 10.AlocatedCosts revenueswhenservicesareprovided. Expensesarechargedtoeachprogramdirectlywhenthechargeisidentifiedtothe program.programexpenditureswhichcanotbedirectlyidentifiedtoaprogramare alocatedbasedolsquarefotage,usagestatisticsandratiofprogrampayrol expensestototalpayrolexpensesasapropriate.managementandgeneralexpenses includethosexpensesthatarenotdirectlyidentifiablewithanyotherspecific functionbutprovidetheoveralsuportandirectionofthecenter. Formanagementanalysispurposes,theOrganizationalocatedadministrativecostsof thecentralandregionaloficesintheamountof$2,318,613and$2,279,851othe variousprogramsitadministereduringtheyearsendedjune30,201and20, respectively.thealocationisbasedonproportionofdirectprogramcostototaldirect programcosts.thesealocatedcostsareincludedinadministrativeandgeneral expensesinthestatementofactivities. 1.Conlributions-Donations Contributedpropertyandequipmentisrecordedatfairvalueathedateofdonation.If thedonorstipulatehowlongtheasetsnmstbeused,thecontributionisrecordedas restrictedsuport.intheabsenceofsuchstipulation,contributionsofproperlyand equipmentarereordedasunrestrictedsuport.todate,alcontributionshaveben includedinunrestrictedsuport.

15 GULFCOASTEACIlINGFAMILYSERVICES,INC NOTESTOFINANCIALSTATEMENTS(CONTINUED) JUNE30,201AND20 12,InKind-Matching bygulfcoastteachingfamilyservices,inc.ofanequalamount.thismatchis IndependentlavingProgramandHUDcontractsrequireamatchofl'rogramBfunds providedthroughin-kindservices.theseservicesarereportedtothefundingagencyon monthlybilings.theyar~enotincludedintherevenuesandexpendituresinthe schedules.duringtheyearendedjune30,201,in-kindservicesprovidedasmatch were$2,634inlafayeteand$28,46inlouma.duringlheyearendedjune30, StatementsofActivitiesofthefinancialstatements,orinthesuplementalinforlnation 201,in-kindservicesprovidedasmatchwere$7,82fortheIUDprogram,l)uring theyearendedjune30,20,in-kindservicesprovidedasmatchwere$24,318in Lafayeteand$95,242inHouma.DuringtheyearendedJune30,20,in-kindservices providedasmatchwere$7,201fortheiudprogram. Note3-INVESTMENTSECURITIES InvestmentsecuritiesatJune30,201and20consistofthefolowing MutualFund-U.S.GovernmentObligationsFund $19, $132,~646 CostandfairmarketvaluearethesameatJune30,201and20 20 Thesefundsearnedaproximately$6,350and$5,80andincuredexpensesof aproximately$16and$10fortheyearsendedjune30,201and20,respectively.

16 GUI,FCOASTEACHINGFAMILYSERVICES,1NC NOTESTOFINANCIALSTATEMENTS(CONTINUED) JUNE30,201AND20 Note4-PROGRAMRECEIVABLES ProgramreceivablesconsistofreimbursementsforexpensesincuredorevenuearnedO1 feforserviceandper-diemcontracts.programreceivablesconsistofthefolowingasof June30,201and20: StateofLouisiana: DepartmentofPublicSafetyandCorections DepartmentofHealth&Ilospitals HousingUrbanDevelopment OficeofMentalIlealth OficeofComunityServices OficeofCitizenswithDevelopmentalDisabilities LouisianaRehabilitationServices Departmentoftealth&tlospitalsCAHSI) Other:Private JPISA Various Subtotal Les:AlowanceforDoubtfulAcounts Total,net Note5-NOTESPAYABLE $107,439 1,376,282 36, , ,389 48,951 31,214 13,518 17,312 25,837 6,430 $2,231,909 (130,7093 $56,421 1,369,707 67,268 18, ,967 41,153 34,304 29,4568O8 $2,078,7 (130,975) 2,101,20$1,947,802 NotespayableconsistofthefolowingatJune30,201: NotepayabletoCananwil,Inc.dated in theoriginalamountof$92,72andpayableininemonthly paymentsof$10,64.notebearsinterestat8.2%. Finalpaymentdue $41,936 NotespayableconsistofthefolowingatJune30,20: NotepayableloCanm~wil,Jnc,dated in theoriginalamountof$81,683andpayableininemonlhly paymentsof$9,393.notebearsinterestat8.3%. Finalpaymenlduel-I2-20. $45,92

17 GULFCOASTEACHINGFAMILYSERVICES,INC NOTESTOFINANCIALSTATEMENTS(CONTINUED) JUNE30,201AND20 Note6-OBLIGATIONSUNDERCAPITALEASES TheobligationsundercapitaleasesconsistofthefolowingatJune30,201 LeasepayabletoNTFCapitalCorporation,datedJune10,197iltheoriginalamount of$15,05andpayablein48monthlypaymentsof$321.leasebearsintcrcstat13.5% andisecuredbytelephonequipment.principalpaymentsof$321aredueinthcyear endingjune30,202. Note7-MORTGAGFNOTESPAYABLE MortgagenotespayableconsistsofthefolowingatJune30,201 NotepayabletoRichardX.Patindated Curent Long-term intheoriginalamountof$180,0andpayable in180monthlypaymentsof$1,72.notebears interestat8.5%andisecuredbyrealestate. FinalpaymentdueJuly2012. $8,712$142,963 NotepayabletoRichardX.Patindated intheoriginalamountof$30,0andpayable in180monthlypaymentsof$295.notebears interestat8.5%andisecuredbyrealestate. Finalpaymentdue ,401 24,42 NotepayabletoHiberniaNationalBankdated intheoriginalamountof$40,0and payablein180monthlypaymentsof$3,876. Notebearsinterestat2.5%overtheinterest rateon1-5yearu.s.treasurysecurities.rate atisuewas8.1%.noteisecuredbyreal estatehavinganapraisalvalueof$648, ,850 Total $28,87$498,25

18 GULFCOASTEACHINGFAMI.YSERVICES,INC NOTESTOFINANCIALSTATEMENTS(CONTINUED) JUNE30,201AND20 Note7-MORTGAGENOTESPAYABLE(CONTINUED) MortgagenotespayableconsistsofthefolowingatJune30,20 NotepayabletoRandolphTrapey,dated inthe Curent Long-term originalamountof$90,319andpayablein60monthly paymentsof$1,941.notebearsinterestat10.5% andisecuredbyrealestate. Finalpaymentisdue ,854 NotepayabletoRichardX.Patindated intheoriginalamountof$180,0andpayable in180monthlypaymentsof$1,72.notebears interestat8.5%andisecuredbyrealestate. FinalpaymentdueJuly2012. NotepayabletoRichardX.Patindated ,04 151,676 intheoriginalamountof$30,0andpayable in180monthlypaymentsof$295.notebears interestat8.5%andisecuredbyrealestate. Finalpaymentdue ,291 25,843 NotepayabletoliberniaNationalBankdated intheoriginalamountof$40,0and payableil180monthlypaymentsof$3,876. Notebearsinterestat2.5%overtheinterest rateon1-5yearu.s.treasurysecurities.rate atisuewas8.1%.noteisecuredbyreal estatehavinganapraisalvalueof$648,0. 18,0 348,607 Total $31,149$526,126

19 GULFCOASTEACtlNGFAMILYSERVICES,INC NOTESTOFINANCIALSTATEMENTS(CONTINUE1) JUNE30,201AND20 Note7-MORTGAGENOTESPAYABLE(CONTINUED) Thematuritiesforthemortgagenotespayableareasfolows YearEndingJune30: $28, $32, ,58 38,64 Thereafter 349,80 41,981 $498,25 InterestexpensefortheyearsendedJune30,201and20amountedto$45,098and $51,429,respectively. Note8-ACRUEI)LIABILITIES AcruedliabilitiesconsistofthefolowingatJune30,201and Acruedsalariesandpayroltaxes Compensatedabsences Other $419, ,569 $605,28 Total 5, ,030 5,217 $702,924$901,535

20 GULFCOASTEACHINGFAMILYSERVICES,INC NOTESTOFINANCIALSTATEMENTS(CONTINUED) JUNE30,201AND20 Note9-COMITMENTS TheOrganizationleasesfacilitiesandequipmentunderoperatingleasesexpiringthroughthc year204.rentalexpenserelatedtotheseleaseswas$402,612and$390,814fortheyears endedjune30,201and20,respectively.minimumfuturerentalpaymentsdueundcr theseleasesasofjune30,201areasfolows: YearEnding _June30, AlRenewedNon-Canclable $397, , , ,513 Total 41,9 $274, , ,684 40,0 Managementexpectsthainthenormalcourseofbusinesleaseswilberenewedor $2,09,218$795,620 replacedbyolhcrleases. Note10-CONCENTRATIONSOFCREDITRISK Slatelawrequiresthatdepositsofalpoliticalsubdivisionsbefulycolateralizcdatal times.aceptablecolateralizalionsincludesfd1c/fsl1cinsuranceandthemarketvalueof securitiespurchasedandpledgedtothepoliticalsubdivision.theorganization,beinga quasi-publicnonprofitentity,isrequiredtocomplywiththeseregulations.obligationsof theunitedstates,thestateoflouisianandcertainpoliticalsubdivisionsarealowedas securityfordeposits.obligationsfurnishedasecuritymustbeheldbythepolitical subdivisionorwithanunafiliatedbankortrustcompanyfortheacountofthepolitical subdivision.atvarioustimesduringtheyear,deposilsinexcesoffdicinsurancewere colaleralizedbythesecuritiesdescribedabove. 17

21 GULFCOASTEACHINGFAMILYSERVICES,INC NOTESTOFINANCIALSTATEMENTS(CONTINUED) JUNE30,201AND20 Note1-UNEMPLOYMENTINSURANCEFUND EfectiveJuly1,192,theOrganizationbecameself-insuredforemployeunemployment compensationclaimsthroughthestablishmentofanorganizationunemploymentinsurance fimd. ActualpaymentstotheStateforUnemploymentbenefitspaidtotaled$48,869in201and $40,21in20. AlknownclaimsasofJune30,201havebenrecordedinthefinancialstatements.The ruledbalanceoftheunemploymentinsurancefundtotaled$63,686and$63,81asofjune 30,201and20,respectively.TheUnemploymeiatInsuranceFundbalanceisincludedin unrestrictednetasetsforfinancialstatementpresentation. Notcl2-ECONOMICDEPENDENCY TheOrgauizationreceivesamajorityofitsrevenuefromfundsprovidedthroughprograms administeredbytheslateoflouisiana.theprogramamountsareapropriatedeachyearby thefederalandstategovenents.ifsignificantbudgetcutsarefectedathefederaland /orstatelevel,theanaountofthefundstheorganizationreceivescouldbereduced significantlyandhaveanadverseimpactonitsoperations.managementisnotawareofany actionslhalwiladverselyafectheamountofundstheorganizationwilreceiveinthe nextfiscalyear. Note13-CONTINGENCIES ProgramsadministeredbytheOrganizationaresubjectoreviewandauditbythevarious fmldingagencies.acordingly,anydisalowedpaymentswhichmayariseasaresultof theseaudits,mayberecoveredbythefundingagenciesinsubsequentyears.

22 GULFCOASTEACINGFAMILYSERVICES,INC NOTESTOFINANCIALSTATEMENTS(CONTINUED) JUNE30,201AND20 Nole14-lANEOFCRE1)IT TheOrganizationsignedaLineofCreditAgrementonApril12,201withalocalnational bank.theagrementhasaprincipalamountof$750,0,amaturitydateofapril12,202, andavariableinterestratequaltothewalstretjournalprimerateplusonepercent.any loansagainsthelinewilbesecuredbyasecurityagrementhatincludesmostofthe Organiz~ation'sasets.Theagrementalsocalsforseveralfinancialcovenantsandratio requirements.therewerenoutstandingloansagainsthelineatjune30,201.fesof $7,50eachyearwerepaidtosecuretheagrementin201and20.

23 SUPLEMENTARY1NFOI/MATION

24 //BERNARD&FRANKS ACORPORATIONOFCERTIFIEDPUBLICACOUNEANTS NICHOLASW.LAFRANZIl,C.P.A JOSEPHV.FRANKSIt,C.P.A,lAMESL.WHITE,C.P.A. INDEPENDENTAUDITOR'SREPORTONTIlESUP1.EMENTARYINFORMATION TotheBoardofDirectors GulfCoastTeachingFamilyServices,]nc NewOrleans,Louisiana OurauditwasmadeforthepurposeoforminganoPiniononthebasicfinancialstatementstakenas awhole.thesuplementaryinformationcontainedonpages21to56ispresentedforpurposesof aditionalanalysisandisnotarequiredpartofthebasicfinancialstatements.suchinformationhas bensubjectedtotheauditingproceduresapliedintheauditofthebasicfinancialstatementsand, inouropinion,isfairlystatedinalmaterialrespectsinrelationtothebasicfinancialstatements takenasawhole. December2,201 MEMBERS;AMERICANINSTITUTEOFCERTIFIEDPUBLICACOUNTANTS 4141VETERANSBLVD.,SUI'[E313,METAIRIE.LA SOCIETYOFLOUISIANACERTIFIEDPUBLICACOUNTANTS PHONE:(504) FAX:(504)

25 REVIr~NUE Programs l)onations Interest Other GULFCOASTEACHINGFAMILYSERVICES,INC SCItEDULE!-COMBINEDSTATEMENTOFREVENUES ANDEXPENSESBYCOSTREPORTGROUPING FOR"]'lieYEARSENDEDJUNE30,201AND20 l'olalrevelue EXPENSES Administrativeandgeneral Planloperationandmaintenance Costrelatedtocapitalasets Dietary,laundryandlinen Ilousekepiug Personalclientneds Therapeuticandlraining Medicalandnursing Recreational Consultants Totalexpenses $20,019, ,528 60,5 19,987 $18,852,68 124,781 39,763 81,74 $20,372,678$19,098,986 $7,438, , ,545 62,46 13, ,601 1,309,478 18,279 49,89 49,939 $7,010, , ,246 62,549 12,10 178,596 10,857,732 21,274 4, $19,917,929$18,950,937 INCREASEINUNRESTRICTEDNETASETS $454,749$148,049 Senoteslofinancialstatements

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61 SPECIALREPORTSOFINDEPENDENTAUDITOR

62 //BERNARD&FRANKS ACORPORATIONOFCERTIFIEDPUBLICACOUNTANTS NICHOLASW.LAFRANZI,C,P.A. NICHOLASr,CHETIA,C.P.A. JAMESk.WHfE,fLEA. CONTROLOVERFINANCIALREPORTINGBASED REPORTONCOMPLIANCEANDONINTERNAl, ONANAUI) TOFINANCIALSTATEMENTS GOVERNMENTAUDITINGSTANDARDS PERFORMEDINACORDANCEWITI TotheBoardofDirectors GulfCoastTeachingFamilyServices,lnc NewOrleans,Louisiana WehaveauditedthefinancialstatementsofGulfCoastTeachingFamilyServices,Inc.(a nonprofitorganization),asofandfortheyearsendedjune30,201and20,andhaveisuedour reporthereondateddecember2,201.weconductedourauditsinacordancewithauditing standardsgeneralyaceptedintheunitedstatesofamericandthestandardsaplicableto financialauditscontainedingovernmentauditingstandards,isuedbythecomptrolergeneral oftheunitedstates. COMPLIANCE AspartofobtainingreasonableasuranceaboutwhetherGulfCoastFamilyTeachingServices, lnc.'sfinancialstatementsarefreofmaterialmistatement,weperformedtestsofitscompliance withcertainprovisionsoflaws,regulations,contractsandgrants,noncompliancewithwhichcould haveadirectandmaterialefectonthedeterminationofinancialstatementamounts,lowever, providinganopinionolcompliancewiththoseprovisionswasnotanobjectiveofourauditand, acordingly,wedonotexpresuchanopinion.theresultsofourtestsdisclosednoinstancesof noncompliancethatarerequiredtobereportedundergovernmentauditingstandards INTERNALCONTROLOVERFINANCIAl,REPORTING Inplaningandperformingouraudit,weconsideredGulfCoastFamilyTeachingServices,lnc.'s internalcontroloverfinancialreportinginordertodetermineourauditingproceduresforthe purposeofexpresingouropiniononthefinancialstatementsandnotoprovideasuranceonthe internalcontroloverfinancialreporting.ourconsiderationoftheinternalcontroloverfinancial reportingwouldnotnecesarilydisclosealmatersintheinternalcontroloverfinancialreporting thatmightbemalerialweakneses.amaterialweaknesisaconditioninwhichthedesignor MEMBERS:AMERICANINSTITUTEOFCERTIFIEDPUBLICACOUNTANTS 4141VETERANSBLVD.,SUIE313,METAIRIE,LA SOCIEIYOFLOUISIANACERTIFIEDPUBLICACOUN'[ANES PHONE;(504)85-0L70FAX:(504)

63 operationofoneormoreoftheinternalcontrolcomponentsdoesnotreducetoarelativelylow leveltheriskthatmistatementsinamountsthatwouldbematerialinrelationtothefinancial statementsbeingauditedmayocurandnotbedetectedwithinatimelyperiodbyemployesinthe normalcourseofperformingtheirasignedfunctions.wenoted51omatersinvolvingtheinternal conlroloverfinancialreportinganditsoperationthatweconsidertobematerialweakneses. ThisreportisinteudedfortheinformationoftheBoardofDirectors,managementandtheStateof Louisianandpas-throughentitiesandisnotintendedtobeandshouldnotbeusedbyanyone olherthanthesespecifiedparties. December2,201 58

64 //BERNARD&FRANKS ACORPORATIONOFCERT{FIEOPUBLICACOUNTANTS NICHOL~,SW.LAFRANZIB,C.P.A. NICHOLASF,CBET~4~C.P.A. JAMESLWHI]E,C.P.A. APLICABLETOEACHMAJORPROGRAMANDONINTERNAl, REPORTONCOMPLIANCEWITHREQUIREMENTS CONTROLOVERCOMPLIANCEINACORDANCE WITHOMBCIRCULARA-13 TotheBoardofDirectors GulfCoastTeachingFamilyServices,Inc NewOrleans,Louisiana COMPLIANCE WehaveauditedthecomplianceofGulfCoastTeachingFamilyServices,Inc.(anonprofit organization)withthetypesofcompliancerequirementsdescribedinthe"u.s.oficeof ManagementandBudget(OMB)CircularA-13ComplianceSuplement"thatareaplicableto eachofitsmajorfederalprogramsfortheyearendedjune30,201.gulfcoastteachingfamily Services,]ne.'s(theOrganization's)majorfederalprogramsareidentifiedinthesumaryofaudit resultsectionandontheacompanyingscheduleofindingsandquestionedcosts.compliance withtherequirementsoflaws,regulations,contracts,andgrantsaplicabletoeachofitsmajor federalprogramsistheresponsibilityoftheorganization'smanagement.ouresponsibilityisto expresanopinionoftheorganization'scompliancebasedonouraudit. Weconductedourauditofcomplianceinacordancewithgeneralyaceptedauditingstandards; thestandardsaplicabletofinancialauditscontainedingovernmentauditingstandards,isuedby thecomptrolergeneraloftheunitedstates;andombcirculara-13,"auditsofstates,local Governments,andNon-profitOrganizations."ThosestandardsandOMBCircularA-13require thatweplanandperformtheauditobtainreasonableasuranceaboutwhethernoncompliance withthetypesofcompliancerequirementsreferedtoabovethatcouldhaveadirectandmaterial efectonamajorfederalprogramocured.anauditincludesexamining,onatestbasis,evidence aboutheorganization'scompliancewiththoserequirementsandperformingsuchother proceduresasweconsiderednecesaryinthecircumstances.webelievethatourauditprovidesa reasonablebasisforouropinion.ourauditdoesnotprovidealegaldeterminationofthe Organization'scompliancewiththoserequirements. MEMBERS:AMERICANINS'[IUTEOFCERTIFIEDPUBLICACOUNTANTS 4141VE'[ERANSBLVD.,SUITE313,MEIAIRIE,LA SOCIEFYOFLOUISIANACERTIFIEDPUBLICACOUNTANTS PHONE:(504) FAX:(504)

65 Inouropinion,theOrganizationcomplied,inalmaterialrespects,withtherequirementsrefered toabovethatareaplicabletoeachofitsmajorfederalprogramsfortheyearendedjune30,201. INTERNALCONTROLOVERCOMPLIANCE TheOrganization'smanagementisresponsibleforestablishingandmaintainingefectiveinternal controlovercompliancewiththerequirementsoflaws,regulations,contracts,andgrants aplicabletofederalprograms.inplaningandperformingouraudit,weconsideredthe Organization'sinternalcontrolovercompliancewithrequirementsthaṭcouldhaveadirectand materialefectonamajorfederalprograminordertodetermineourauditingproceduresforthe purposeofexpresingouropiniononcomplianceandtotestandreportontheinternalcontrolover complianceinacordancewithombcirculara-13. Ourconsiderationoftheinternalcontrolovercompliancewouldnotnecesarilydiscloseal matersintheinternalcontrolthatmightbematerialweakneses.amaterialweaknesisa conditioninwhichthedesignoroperationofoneormoreoftheinternalcontrolcomponentsdoes.laws,regulations,contracts,andgrantsthatwouldbematerialinrelationtoamajorfederal notreducetoarelativelylowleveltheriskthatnoncompliancewithaplicablerequirementsof programbeingauditedmayocurandnotbedetectedwithinatimelyperiodbyemployesinthe normalcourseofperformingtheirasignedftmctions.wenotednomatersinvolvingtheinternal controlovercomplianceanditsoperationthatweconsidertobematerialweakneses. ThisreportisintendedfortheinformationanduseoftheBoardofDirectors,managementandthe StateofLouisianandpas-throughentitiesandisnotintendedtobeandshouldnotbeusedby anyoneotherthanthespecifiedparties. December2,201

66 GULFCOASTEACHINGFAMILYSERVICES,INC SCItEDULEOFINDINGSANDQUESTIONEDCOSTS SCHEDULE1-SUMARYOFAUDITRESULTS YEARENDEDJUNE30,201 Theindependentauditor'sreportonthefinancialstatementsexpresedanunqualified opinion. 2Thestatementhatreportableconditionsininternalcontrolweredisclosedbytheauditof thefinancialstatementsandwhetheranysuchconditionswerematerialweaknesesisnot aplicable. Noinstancesofnoncomplianceconsideredtobematerialtothefinancialstatementswere disclosedbytheaudit. Noinstancesofreportableconditionswerediscloseduringtheauditofmajorfederal awardprograms.nomanagementleterwasisueduringthisperiod. TeachingFamilyServices,lnc.expresedanunqualifiedopiniononalmajorfederal Theauditor'sreportoncomplianceformajorfederalawardprogramsforGulfCoast programs. TherewerenofindingstobereportedontheScheduleofFederalAwardsFindingsand QuestionedCosts. 7.MajorprogramsforthefiscalyearendedJune30,201wereasfolows Departmentofliealfl~and1lumanServices-Title IV-E-IndependentLiving <CFDA#93.674> lousingandurbandevelopment <CFI)A#14.235> 8ThethresholdfordistinguishingTypesAandBprogramswas$30,0 9GulfCoastTeachingFamilyServices,Inc.wasnotdeterminedtobealow-riskaudite

67 SCIEDULEOFINDINGSANDQUESTIONEDCOSTS GULFCOASTEACI1NGFAMI.YSERVICES,INC SCHEDULE2-REPORTABLECONDITIONS- FINANCIALSTATEMENTS-CURENTYEAR YEARENDEDJUNE30,201 Noinstancesofreportableconditionsfound 62

68 GULFCOASTEACItlNGFAMILYSERVICES,INC SCtlEDULEOFINDINGSANDQUESTIONEDCOSTS MAJORFEDERALAWAIO)SPROGRAMSAUDIT SCHEDULE3-REPORTABLECONDITIONS- YEARENDEDJUNE30,201 Noinstancesofreportableconditionsfound 63

69 GULFCOASTEACItlNGFAM1LYSERVICES,INC SCHEDULE4-SUMARYOFPRIORYEAR'S YEARENDEDJUNE30,201 AUDITFINDINGS EXPENSEANDACOUNTSPAYABLESYSTEM Thedetailedacountspayablesubsidiaryledgerswerenotreconciledtothegeneraledgercontrol acountsonacurentbasis.theprintoutsofthedetailedacountspayablelistingswerenot verifiedandagredtothegeneraledgercontrolacounts.procedureswerestablishedforthe monthlyreviewandreconciliationoftheacountspayablesubsidiaryledgerstothegeneraledger. Theprocesisreviewedperiodicalybysupervisorypersonel

70 SCltEDULE5-MANAGEMENT'SCORECTIVEACTIONPLAN GULFCOASTEACHINGFAMILYSERVICES,INC FORCURENTYEARFINDINGS YEARENDH)JUNE30,201 EXPENSEANDACOUNTSPAYABLESYSTEM Wehaveapoinledasupervisortofolowuponthereconciliationprocedurestoensurethathe proceduresareperformedcorectlyonatimelybasis.

71 SCItEDULE6-SCHEDULEOFEXPENDITURESOFEDERAL GUI,I:COASTEACINGFAMILYSERVICES,INC AWARi)SFORTHEYEARENDEDJUNE30,201 ANDRELATEDNOTES FederalGrantor/Pas-ThroughGrantor/ FederalAgencyor ProgramTitle CFDA Number Pas-Through Number Expenditures Federal MAJORPROGRAMS U.S.DepartmentofHealthandlumanServices l'as-througbdepartmentofsocialservices OficeofComunityServices TitleIV-EIndependentlaving-Houma TitleIV-EIndependentlaving-Lafayete TransitionalavingProgram-BasicCenter Grant ,806 91,478 $269,653 90,369 IlousingandUrbanDevelopment SuportiveIlousingProgram Ilouma-TereboneandLafourcheParish LA48B LA48B80201_ 184, ,289 3_0,93 TotalMajorPrograms OTIERFEDERALAWARDS 484,942 U.S.DepartmentofltealthandltumanServices Pas-throughDepartmentofSocialServices OficeofComunityServices TotalOtherFederalAwards FosterParentTrainingLafayete $16,43 38,529 2,086 TotalExpendituresofFederalAwards ~_523,471

72 GUI.FCOASTEACtlNGFAMILYSERVICES,INC SCIEDULE6-SCItEDULEOFEXPENDITURESOFEDERAL AWARDSFORTHEYEARENDEDJUNE30,201 ANDRELATEDNOTES NoteA-BasisofAcounting ]'heacompanyingscheduleofexpendituresoffederalawardsincludeslhefederalgrant activityoftheorganizationandispresentedontheacrualbasisofacounting.theinformation inthischeduleispresentedinacordancewilhtherequirementsofombcirculara-13, "AuditsofSlates,LocalGovernments,andNon-ProfitOrganizations."Therefore,some amountspresenledinthischedulemaydiferfromamountspresentedin,orusediralhe preparationofthebasicfinancialstatements. NoleB-Risk-BasedAuditAproach Thedolar"thresholdusedtodistinguishbetwenTypeAandTypeBprogramsis$30,0 TheOrgauizationdoesnotqualifyasalow-riskaudite. NoteC-MalclfingContributions U.S.DepartmentofltealthandltumanServicesfederalawardspasedthroughtheStateof l.ouisianaoficeofcomunityservicerequiredmatchingfundsasfolows: TitleIV-EIndependentLivingLafayete TitleIV-EIndependentLivingIlouma $2,634 $28,46 tudprogram $7,82 67