Jefferson Federation of Teachers H ealth & W elfare Fund. M etairie,louisiana

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1 H ealth & W elfare Fund M etairie,louisiana A ugust 31,2001

2 TA BLE O F CO N TEN TS H ealth & W elfare Fund A ugust 31,2001 ln D EPEN D EN T AU D ITORS'REPORT STATEM EN T O F BEN EFIT OBLIGATIO N S AN D N ET A SSETS AVA ILABLE FOR BEN EFITS STATEM EN T O F CH AN GES IN BEN EFIT OBLIGATION S AN ]) N ET A SSETS AVAILAB LE FOR BEN EFITS N O TE S TO FIN A N CIA L STA TEM EN TS SCH ED U LE O F AI)M IN ISTRATIVE EXPEN SES IN D EPEN D EN T AU D ITORS'REPORT ON COM PLIAN CE AN D ON IN TERN A L CO N TRO L OVER FIN AN CIA L REPORTIN G BA SED O N AN A U D IT O F FIN A N CIA L STATEM EN TS PERFORM ED IN A CCORDAN CE W ITH G OV ERN M EN TA L A U D ITIN G STAN D A RD S SCHEDULE OF FINDINGS AND QUESTIONED COSTS - SECTION IAND II 2,, , ll

3 L eg hle & C om pany,c PA s (A ProfessionalCorporalion) January 25,2002 q'o the Trustees tlealth & W elfare Fund M etairic,louisiana N D EPEN D EN T AU D ITORS'REPORT W e have audited the accom panying statem entof benefitobligations and netassets available for benefits of the H ealth & W elfare F und as of A ugust 31,2001,and the related statem ent of changes in benefitobligations and net assets available for benefitsforthe year then ended. These financialstatem entsare the responsibility ofthe Fund's m anagem ent. O ur responsibility is to express an opinion on these financialstatem ents based on our audit. W e conducted our audits in accordance w ith U.S.generally accepted auditing standards and the standards applicable to financialauditscontained in G overnm entala uditing Standards, issued by the Com ptroller G eneralof the U nited States. Those standards require thatw e plan and perform the auditto obtain reasonable assurance about w hether the financialstatcnm nts are fi'ee of m aterialm isstatem ent. A n audit includes exam ining,on a test basis,evidence supporting the am ountsand disclosures in the financialstatem ents.a n audit also includes assessing the accounting principlesused and significantestim atesm ade by m anagem ent,asw ellas evaluating the overallfinancialstatem ents presentation. W e believe that our audit provide a reasonable basis for our opinion. In our opinion the financialstatem entsreferred to above fairly presentin allm aterial respects,the benefitobligations and netassets available for benefits ofthe Jefferson Federation of Teachers H ealth & W elfare Fund as of A ugust 31,2001,and the changes in benefitobligations and netassets available for benefits for the year then ended in conform ity w ith U.S.generally accepted accounting principles. O ur auditw as m ade for the purpose of fi)rm ing an opinion on the basic financialstatem ents taken as a w hole. The inform ation in Schedule 1 is presented for purposes of additionalanalysis and isnota required partofthe basicfinancialstatem ents.such inform ation hasbeen subjected to the auditing procedures applied in the auditofthe basic financialstatem entsand,in our opinion,is fairly stated in allm aterialrespects in relation to the basic financialstatem ents taken as a w hole. R espectfully subm itted, (A ProfessionalCorporation) 2850 Energy Centre ~1100 l'oydlasstlcet~new O rleans,l,ouisiana Telephone 504/ ~Fax 504/ M emberofa m elican Institute ofcertified PublicAccounlm~tsand Society oflouisiatxa Certified Public A ccountants

4 ExhibitA STA TEM E N T O F B E N E FIT O B LIG A TIO N S A N D N E T A SSETS A V A ILA B LE FO R B E N E FIT S Jeferson Federation of Teachers H ealth & W elfare Fund A ugust31,2001 Benefit O bligations E stim ated dentaland vision claim s incurred, but notreported E stim ated disability claim s incurred, butnot reported Claim s reported,but not paid Totalbenefitobligations N eta ssets Investm ents,at fair value: M oney m arketfunds M utualfunds Corporate bonds and notes Com m on stock Totalinvestm ents R eceivables and prepaid expenses: Contributions receivable A ccrued interest receivable Prepaid expenses Totalreceivables and prepaid expenses Cash Property and equipm ent: Furniture and equipm ent Less accum ulated depreciation Totalproperty and equipm ent Totalassets Liabilities A ccounts payable and accrued liabilities N ET A SSETS AVA ILABLE FO R :BEN EFITS EX CESS O F N ET A SSETS A VA ILA BLE FO R BEN EFITS O V ER B EN EFIT O BLIGATIO N S $ 217,400 1, , ,462 2,331,582 1,458,791 4,032, ,670 44,658 19, , $ 3,963,608 See accom panying notes to financialstatem ents 2

5 ExhibitB STA TEM EN T O F CH AN G E S 1N BEN EFIT O BLIGATIO N S A N D N ET A SSETS AVA ILA B LE FO R BF.N EFITS H ealth & W elfare Fund Y ear ended A ugust31,2001 N etincrease (D ecrease)in BenefitOblieations lncrease (Decrease)during the yearattributable to E stim ated dentaland vision claim s incurred, but not reported E stim ated disability claim s incurred, but not reported Claim s reported,butnot paid N et]ncrease (D ecrease)in N eta ssets Available for Benefits Contributions: Jefferson Parish SchoolB oard V oluntary em ployee M iscellaneous incom e Totalcontributions Investm entincom e (Loss): N et decrease in fair value of investm ents Interest Loss on sale of investm ent Less investm entexpenses N et investm entloss Totaladditions Paym ents: H elp line benefit Benefit prem ium s D ental,vision and disability claim s A dm inistrative expenses Totaldeductions N ET IN C R EA SE (D E CR EA S]~ D ecrease in N eta ssetsavailable for Benefits O ver Benefit O bligations Excess of N et A ssets A vailable for Benefits O ver B enefit O blieations Beginning of period $ (15,000) (100) 35,281 20,181 1,193, , ,988,838 (452,933) 195,079 (38,859) (296,713) 32,580 (329,293) 1.659,545 49, , ,100 1,880, , (667,960) (688,141) 4.651,749 E nd of period See accom panying notes to financialstatem ents

6 N ote 1-FU N D D ESCRIPTION N OTE S TO FIN A N CIAL STATEM EN TS H ealth & W elfare Fund A ugust 31,2001 The Fund w as established M ay 9,1983 pursuantto a collective bargaining agreem ententered into by and between the Jefferson Parish SchoolBoard CEmploycr")and the Jeferson Federation ofteachers("union"),forand on behalfofteachersand otherem ployeesengaged in covered em ploym ent under the collective bargaining agreem ent. The Fund isa voluntary em ployee beneficiary association CVEBA")qualified undersection 501 (c)(9)ofthe InternalRevenue Code and organized and administered underlouisiana State law. Consequently,a trustagreem entw as adopted M ay 9,1983 governing the Fund's adm inistration and a plan of benefits w as adopted subsequently thereto specifying the eligibility rules for em ployee and dependent participation and the benefits extended by the plan. Because the Fund has been established for the exclusive benefit of public em ployees and is funded pursuant to the collective bargaining agreem ent by contributions of a governm ental agency,the Plan isa "governm entalplan"exemptfrom the coverage oferisa (the Em ployee Retirem entincom e Security Actof1974).The Plan isnotregulated by Section 302 (c)(5)ofthe Labor M anagem ent Relations A ct,despite its collectively bargained status,since the A ct exem pts from its purview em ployers and unions in the public sector. The Fund and Plan are adm inistered by ten Trustees,five of w hom are appointed by and represented by the Em ployer,and five ofw hom are appointed by and represented by the U nion. In the event of an Em ployer-u nion deadlock in the Trustee votes,the Trust A greem ent requires tlm parties to arbitrate any question concerning the Fund's adm inistration.although authorized by law to offerany benefitsanctioned by Section 501(c)(9)ofthe InternalRevenue Code,the Plan presently pays only dentaland vision,death,and disability benefits and does not offerm ajorm edicalbenefitsofany kind because thisfund'sparticipantsare also eligible participants in the State E m ployees G roup Benefit Program. The Trustees of the Jefferson Federation of Teachers H ealth & W elfare Fund lim itbenefitcoverage to those excess or noncore benefits notoffered by the statew ide Fund. Effective January 1,1991,the Fund began to selfinsure allbenefitspayable by the Plan w ith the exception of its life insurance program,w hich is stillfully insured. The short-term disability program has been self-insured since January 1,1989. Beginning Septem ber 1,2001,the Fund eniered into a contract to provide a tw enty-four hour help line to provide various assistance to the teachers and other related em ployees.d ue to lack ofutilization,the contractw as discontinued after one year. The Fund is self adm inistered by an A dm inistrative M anager and staf em ployed directly by the B oard of Trustees.

7 N ote 2 -SU M M ARY OF SIGN IFICAN T A CCOU N TIN G PO LICIES The financialstatem ents of the Fund have been prepared using the accrualbasis of accounting A llcontributions subm itted to the Fund are adm inistered by the Board of Trustees pursuantto the Plan ofbenefits,as am ended from tim e to tim e. The Fund depreciates its furniture and equipm entover usefullives offive to seven years using the straight-line m ethod. D epreciation expense for the year ended A ugust31,2001w as $16,707. The liabilities for disability claim s incurred butnot reported w ere estim ated by the Plan's actuary based on a percei~tage ofthe prem ium projectionsforthe following year. The liabilities for dentalvision claim s w ere estim ated by the Plan's actuary based ola percentage of paid claim s for the year ended A ugust31,2001. Investm ents are valued at quoted m arket price The preparation of financialstatem ents in conform ity w ith generally accepted accounting principles requires m anagem entto m ake estim ates and assum ptions thataffect the reported am ounts ofassets and liabilities and disclosure of contingentassets and liabilities atthe date of the financialstatem entsand the reported 8m ounts of revenues and expenses during the reporting period.a ctualresults could differ from those estim ates. Atvarious tim es during the period,cash on depositwith one banking institution exceeded the $100,000 insured by the FederalDepositInsurance Corporation.M anagem ent m onitors the financialcondition of the financialinstitution on a regular basis,along w ith their balances in cash and cash equivalents to m inim ize the potentialrisk. N ote 3 -FU N D IN G PO LICY The Jefferson Parish SchoolBoard contributed $1,193,378 to the Fund for the year ended A ugust31,2001. A n em ployee m ay voluntarily contribute additionalam ounts,determ ined by the Trustees to purchase Coverage for the em ployee's eligible dependents.em ployees contributed $787,375 during the period to obtain dependentcoverage. Ifeligibility is term inated due to cessation of em ploym entor a reduction in hours,an em ployee m ay pay for extended coverage pursuantto COBRA,state law and Plan rules for lim ited term s and under the lim itations specified in the law and the Plan.

8 N ote 4.IN VESTM EN TS The Plan's assets are held by a bank custodian and are invested by a professionalinvestm ent m anagcr pursuant to investm entguidelines issued by the Trustees and pursuantto the bank's w ritten contractw ith the Board. Investm ents that represent five percent or m ore of totalplan assets arc separately identified below : Investm ents atfair value as determ ined by quoted m arketprice: Corporate bonds and notes Com m on stock Fair m arket vahle $ 2,331,582 1,458,791 Netappreciation in fairvalue _~ 790 ~73= 3. The Fund'sinvestments (including investm ents bought,sold and held during the period) decreased in value by $452,933 as follow s: Investm ents at fair value as determ ined by quoted m arket price: M utualfunds Corporate bonds and notes Com m on stock $ (55,440) 121,666 (519,159) Netdepreciation in fairvalue ~ ~4~ ~~ The fair value of individualinvestm ents thatrepresentfive percentor m ore of the plan's total assets are as follow s: G M A C debentures $ 250,000 N ote 5 -IN CO M E TA XES The Fundisexem pt~om incom e taxesunder Section 501(c)(9)ofthe U.S.InternalRevenue Code. N ote 6 -RETIREM EN T PLA N E m ployees of the Fund participate in the Louisiana Teachers'Retirem ent System and therefore accrue credits in that Fund's defined benefitplan in accordance w ith its ow n eligibility rules. N o inform ation is available concerning the Louisiana Teachers'Retirem entsystem 's actuarial soundness,netassets,or actuarialpresentvalue of accum ulated vested and non-vested bcnefits

9 N ote 7 -LEA SIN G A RRAN G E M EN TS The Fund's office facilities are rented under a non-cancelable operating lease through O ctober Future fixed rentals under the lease are as follow s: Y ear ended A ugust31 A m ount 2005 $ 11, , ,006 Total fl 25,52_3 Rentexpense fortheyearended August31,2001totaled $12,070

10 Schedule 1 H ealth & W elfard Fund Y ear ended A ugust31,2001 A ccounting and auditing B anking fees Com puter expenses Consulting D epreciation E m ployee benefits Insurance Legal M aintenance M eetings M iscellaneous Postage Printing and publications R ent Salaries Stationery and supplies Telephone Training and conferences U tilities $ 13,244 9,657 12,780 49,828 16,707 25,960 9,006 32,023 28,146 3,544 5,265 17,050 19,324 12, ,667 10,615 5,897 30,227 1,642 Totaladm inistrative expenses

11 L eg lue & ('onapany,c PA s (A ProfessionalCorporation) January 25,2002 To the Trustees H ealth & W elfare Fund M etairie,louisiana N llepen D EN T AU D ITORS'REPORT ON COM PLIAN CE AN D O N IN TERN AL CON TRO l, O V ER FIN A N CIA L REPO RTIN G BA SED O N A N A U D IT O F FIN AN CIA L STA TEM EN TS ERFO RM ED IN A CCO RDAN CE W ITH G OVERN M EN TAL AU D ITIN G STA N DARD S W e have audited tt~e financialstatem ents of Jefferson Federation ofteachers ttealth & W elfare Fund as of and for the year ended A ugust 31,2001 and have issued our reportdated January 25,2002. W e conducted our audit in accordance w ith generally accepted auditing standards and the standards applicable to financialaudits contained in G overnm entala uditing Standards,issued by the Com ptroller G eneralof the U nited States. Com pliance A s part of obtaining reasonable assurance aboutw hether Jeferson Federation of Teachers llealth & W elfare Funds'financialstatem entsare free ofm aterialm isstatem ent,w e perform ed tests ofits com pliance w ith certain provisions of law s,regulations and contracts,noncom pliance w ith w hich could have a directand m aterialeffect on the determ ination of financialstatem entam ounts. ]]owever,providing an opinion on com pliance with those provisionswasnotan objective ofour audit,and accordingly,w e do notexpress such an opinion. The result of our tests disclosed no instances of noncom pliance thatare required to be reported under "G overnm ent A uditing Standards." nternalcontrolover FinancialRenortine In planning and perform ing our audit,w e considered ]]ealth & W elfare Funds'internalcontrolover financialreporting in order to determ ine our auditing procedures for the purpose of expressing our opinion on the financialstatem entsand notto provide assurance on the internalcontrolover financialreporting. O ur consideration of the internal controlover financialreporting w ould not necessarily disclose allm atters in the internalcontrol over financialreporting thatm ightbe m aterialw eaknesses. A m aterialw eakness is a condition in w hich the design or operation of one or m ore of the internalcontrolcom ponents does not reduce to a relatively low levelthe risk that m isstatem ents in am ounts that w ould be m aterialin relation to the financialstatem ents being audited m ay occur and not be detected w ithin a tim ely period by em ployees in the norm alcourse of perform ing their assigned functions. W e noted no m atters involving the internalcontrolover financialreporting and its operations thatw e consider to be m aterialw eaknesses Energy Ccntle ~1100 PoydlasSlicer~New O Jleans,l,ouisiana Telephone 504/ ,Fax 504/ M emberofa m erican Inslltute ofcertified Public A ccount~ll8and SocietyofLouisianaCertifiedPublicAccountmlls 9

12 This reportis intended for the inform ation ofthe m anagem ent,board oftrustees,and the Legislative A uditor's office. H ow ever,this reportis a m atter of public record,and its distribution is not lim ited. Respectfully subm itted, (A ProfessionalCorporation)

13 SCH ED U LE O F FIN D 1N G S A N D O U E STIO N E D CO STS H ealth & W elfare Fund Y ear ended A ugust 31,2001 Section I-Sum m ary of A uditor's Results FinancialStatem ents Type of auditor's reportissued: Internalcontrolover financialreporting: ~ M aterialweakness(es)identified? ~ Reportable condition(s)identified thatare not considered to be m aterialw eaknesses? U nqualified _ yes X no _ yes _ X none reported N oncom pliance m aterialto financialstatem ents noted? yes X no Section II-FinancialStatem ent Findings -N O N E 11

THEOLOGICAL COLLEGE OF THE CANADIAN REFORMED CHURCHES FINANCIAL STATEMENTS FOR THE YEAR ENDED MAY 31,1986 INDEX

THEOLOGICAL COLLEGE OF THE CANADIAN REFORMED CHURCHES FINANCIAL STATEMENTS FOR THE YEAR ENDED MAY 31,1986 AUDITORS' REPORT BALANCE SHEET EQUITY REVENUE AND EXPENDITURE EXPENDITURE DETAIL NOTES TO THE FINANCIAL