AN N UAL FINAN CIAL REPO RT JUN E 30,2000

Transcription

1 NATCH ITO CH ES A SSO CIATIO N FO R R ETA R D ED C ITIZEN S,IN C. A D U LT H A BILITA TIO N PR O G RA M A N D SH ELT ERE D W O R K SItO P AN N UAL FINAN CIAL REPO RT JUN E 3,2 Underprovisions ofstate law,this reportis a public docum ent,a copy ofthe report has been subm itted to the entity and otherappropriate public officials.the report is available forpublic inspection atthe Baton Rouge office ofthe Legislative Auditorand,w here appropriate,atthe office ofthe parish clerk ofcourt. Release Date _.~_~'~.I -(~)/

2 N atchitochesa ssociation for Retarded C itizens,inc. AdultHabilitation Program and Sheltered W orkshop A nnualfinancialreport June 3,2 T A B L E O F C O N T E N T S IndependentAuditols'Report FinancialStatem ents Exhibit ~_ ag~ I-2 Com bined Statem entof FinancialPosition Com bined Statem entof A ctivities Com bined Statem entof Cash Flow s C om bined Statem entsof FunctionalExpenses N otesto FinancialStatem ents SuDn]elneuta fv lrtfolm arion A dult1labilitation Pro~,ram Statem entof lqnancialposition w ith Com parative A m ountsfrom Y earended June 3,1999 Statem entofactivitiesw ith Com parative A m onnlsfrom YearEnded June Statem entofcash Flow sw ith Com parative Am ountsfrom YearEnded June 3,1999 A B D E F G Statem entoffuuctionalexpensesw ith Com parative A m ountsl?om Y earended June 3,1999 H 19 Sheltered W orkshop Statem entof FinancialPosition w ith Com parative A m ountsli-om Y earended June 3,1999 Statem entof A ctiviliesw ith Com parative

3 A m ountsfrom Y earended June 3,1999 Statem eotof (?ash Flow sw ith Com parative A m ountsfro m YearEnded June 3,1999 K 22 N atchitochesa ssociation forretarded Citizens,Inc. A dulthabilitation Program and Sheltered W orkshop A nnualfinancialreport June 3.2 T A B L E O F C O N T E N T S (cont'd) Statem entoffunctionalexpensesw ith Com parative A m ountsfrom YearEnded June 3,1999 ]nlernalcontroland Conm liauce Report on Com pliance and on lntem alcontrol overfinancialreporting Based on an A uditof FinancialStalcm cntsperform ed in A ccordance w ith G overnm entalauditing Standards B oard of D irectors _Exhibit L M N Pag~

4 Johnson,Thom as & Cunningham Certified PublicAccountants EddieG.Johnson,CPA - A Pn)fession alcorporation ( ) M ark D.Thomas,CPA -A Pl~fession alcorporation RogerM.Cunningham,CPA - A ProfessionalCorporation 321BienvilleStreet N atoh itodtes,louisiana (318) Fax (318) N D EPEN D I,;N T A U D ITO RS'REPO RT To the Board of D irectorsof N atchitochesa ssociation forretarded Citizens,Inc N atchitoches.la W e have audited the accom panying statem ent of financialposition of N atchitoches A ssociation for Retarded Citizens,Inc.(a nonprofitorganization)asof June 3,2,and lhe related statementsof ~ctivities,functionalexpenses,and cash flowsforthe yearthen ended. These financialstatem entsare the responsibility of the O rganization's m anagem ent. O urresponsibility is to express an opinion on tbese financialstatem ents based on ouraudit. W e conducted our audil in accordance w ith generally accepted auditing standards and the standards applicable to financialatldits contained in G owwnm enta uditing Standards,issued by the Com ptroller G eneralof the United States Those standards require thatw e plan and perform the auditto obtain reasonable assl.lrancc aboutw hether the financialstalem ents are free of m aterialm isstatem ent. A n audit includes exam ining,on a testbasis,evidence supporting the am ounts and disclosures in the financial statem ents. A n auditalso includesassessing the accounting principlesused and tire significantestim ates m ade by m anagem ent,asw ellasevaluating the over-allfinancialstatem entpresentation. W e believe lhal ourauditprovidesa reasonable basisforouropinion. In our opinion,tire financialstalem enls referred to above presentfairly,in allm aterialrespects,the financialposition of the N atchitochesa ssociation forretarded Citizens,Inc.asof June 3,2, and the changes in itsnetassetsand itscash flow sforthe yearthen ended in conform ity w ith generally accepted accounting principles. O urauditwas conducted forthe purpose of form ing an opinion on the financialstatem entstaken asa whole. The accompanying financialinform ation listed as"supplem entary Inform ation" in the table of contents,are presented Jbrpurposes of additionalanalysis and are nota required partof the financial statements. Such information hasbeen subjected to theauditing proceduresapplied in theauditofthe financialstatem entsand,in ouropinion,is fairly stated in allm aterialrespects in relation to the basic financialstatcm ents taken asa w hole.

5 Page 2 I1accordance w ith Governm entauditing Standards,we have also issued ourreportdated Decelnber2, 2,on ourconsideration of N alchitochesa ssociation forretarded Citizens,lnc.'sinternalcontrolover financialreporting and ourtestsof itscom pliance w ith certain provisionsof law s,regulations,contracts, and grants. Johnson,Thom as & Cunninclham Johnson,Thom as& Cunningbam,CPA 's Decem ber2,2 N atchitoches.louisiana

6 FIN AN CIA L STA TEM EN TS

7 ExhibitA Page 4 N atchitochesa ssociation forretarded Citizens,Inc. A dult]labilitation Program and Sheltered W orkshop Com bined Statem entof FinancialPosition Y earfnded June 3.2 A SSETS: Cash l~.eceivables Plantand Equipm ent,n etof A ccum ulated I)epreciation of $6,863 $ 78,786 17,313 42,427 TotalA ssets LIA B ILITIES: A ccountspayable Payrolland PayrollTaxesPayable Total1.iabilities N ET A SSE'IS: Unrestricted Tem porarily Restricted TolalN eta ssets $ 1, $ 2,118 $ 87,688._ 48 ~ y79o $136,478 TotalLiabilities& NetA ssets

8 The accom panying notesare an integralparlof thisstatem ent. ExhibilB Page 5 N atchitochesa ssociation forretarded Citizens,Inc. A dulthabilitation Program and Sheltered W orkshop Com bined Statem entof A ctivities Y earended June 3.2 U N RI".STI(ICTt!D N ET A SSETS: Snpporl- Fees- State of Louisiana,D epartm enlof H ealth and ltospitals O ffice forcitizensw ith D evelopm entald isabilities State of 1.ouisiana,D epartm entof H ealth and llospitals Title X 1X ContractW ork SoftD rink Sales O lher Total}~.evenues,G ains,and O thersupport Expenses: Program Services M anagelnentand G enera "lotall'xpenses Increase in U nreslricled N eta ssets Increase in NelA ssets $177,165 28,314 23,775 3,22 7,46 $?~ 34 $177,25. 6 ~364 $2~ j4 $ 2,3 _ 2 $ 2,32 N eta ssets-beginning of Y ear N ela ssets-end of Year $J~6.47~

9 The accom panying notesare an integralpartof thisstatem ent. ExhibitC Page 6 N atchitochesa ssociatinn forretarded Citizens,Inc. A dulth abilitation Program and Sheltered W orkshop Com bined Statem entof Cash Flow s Y earended June 3.2 CA SI1FLO W S FRO M O PERATIN G A CTIV ITIES: Change in N eta ssets Adjustmentsto ReconcileChangein NetAssets to NetCash Provided by (Used In)Operating Activities- D epreciation (lncrease)/decreasein Receivables lncreasc,'(l)ccreasc)inaccountspayable lncrease/(1)ecreasc)in Payrolland PayrollTaxesPayable NetC~sh I'rovided By/(Used In)Operating Activities CA SItFLO W S FRO M IN V ESTIN G A CTIV ITIES Purchase of I!quipm ent NetC~sh Provided By/(Used In)Investing Activities Netlncrease/(l)ccreasc)in Cash C ash-beginning of Y ear $ 2,32 1,784 (1,638) 248 A3_2=~85) $14~22 29 $ 1Z!~) 2 $ fz!~) 2 $1o,211 ~ ~ 52~_ 75 $782 86

10 The accom panying notesare an integralpartof thisstatem ent.

11 ExhibitI) Page 7 N atchitochesa ssociaon forretarded Citizens, Inc. A dulthabilitation Program and Sheltered W orkshop Com bined Statem entof FunctionalExpenses Y earended June 3.2 COM PEN SATION AN D REI~ATED EX PEN SES O fficers'salaries (lientsalaries O thersalaries PayrollTaxes W orkm an'scom pensation Insurance Program Services 14,164 8,817 6,24 M anagem ent and G eneral $23,916 18,96 3,328. 3~236 Total $ 23,916 14,164 99,777 9,568 3,236 TotalConapensation and Related Expenses $11~221 $4 94~94 $~ O CC UPAN CY I!:X PEN SES Rent Repairsand M aintenance U tilities $ 19,5 1,934 7,153 $ S 19,5 1,934 7,153 TotalO ccupancy Expenses TRAN SPORTATION EX PEN SES Fuel& O il $..~q7,587 $ _ $ $_]13,489 $ _ $~ 89 $ 9, , $ 4,3 1, $ 4,3 1, , , ,22 2,759 9 _2 _ 4 _ 2,22 8 5, $ 24,953 $ i~_92~ S 35,877 $ sfio4a4 $23Y& ~ "File aeeornpanying notesare alintegralpartof "JSstatem en

12 N OTES TO FINAN CIAL STATEM EN TS

13 Page 9 N atchitochesa ssociation forr etarded C itizens,inc. A dulthabilitation Program and Sheltered W orkshop N otesto FinancialStatem ents June 3,2 NO TI,;1 SUM M ARY O F SIG N IFICANT A CCO UN TING PO LICIES Tile N alchitoches A ssociation for Retarded C itizens, Inc., is a quasi-governm ental, nonprofit organization incorporated M arch 31,1981,w hose purpose isto prom ote the generalw elfare of tile m entally retarded,to encourage research related to m entalretardation,to advise and aid parents in the solution of their problem s, to develop a better understanding of the problem s of m ental retardation by the public,to cooperate w ith allagenciesand professionalgroups in the furtherance of these ends,to associate w ith and supportfinancially the State and N ationala ssociationsto prom ote the com m on cause,to serve locally as a clearinghouse for gathering and providing inform ation regarding the lnenially retarded,and to solicitand receive fundsforthe accom plishm entofthc stated The A ssociation's AdultItabilitation Program and Sheltered W orkshop have adopted Statem entof Financial Accounting Standards (SFAS) No. 117, "Financial Statements of Not-for-Profit O rganizations." UnderSFA S N o.117,the A ssociation'sadulthabilitation Program and Sheltered W orkshop are required to reportinform ation regarding itsfinancialposition and activitiesaccording to three classes of net assets: unrestricted net assets, tem porarily restricted net assets, and perm anently restricted net assets. In addition,the A ssociation's A dult llabililalion Program and Sheltered W orkshop arc required to present a statem ent of cash flow s. A s permitted by this net statem ent,the A ssociation'sa dulthabililafion Program and Sheltered W orkshop has discontinued its use offund accounting and has,accordingly,reclassified its financialstatem entsto presentthe three classesof netassetsrequired. The A ssociation operates tw o separate divisions. O ne, the A dult ttabilitation Program,receives funding from the State of Louisiana,D epartm entof tlealth and Hospitals,O ffice forcitizensw ith D evclolnnental Disabilities to provide adultday services for a m ininm m of 22 clients. The other division is the N atchitoches Sheltered W orkshop. The N atchitoches Sheltered W orkshop is totally self-supportive. Incom e to the Sheltered W orkshop consists solely of revenues earned lhrongh contracts w ith private individuals and com panies for the provision of services perform ed by the clientsof the W orkshop. N o federalfinancialassistance of any type isreceived by the N atchitochcs Sheltered W orkshop. Prom isesto G ive Contributions ate recognized when a donor m akes a prom ise to give to the A ssociation's Adult }labilitation Program and Sheltered W orkshop that is,in substance,unconditional. Contributions thatare restricted by tile donorare reported as increases in unrestricted netassets if the restrictions expire in the fiscal year in w hich the contributions are reported as increases in tem porary or pcrm ancn~tly reslrictod nctassets,depending on the nature of the restrictions. W hen a restriction expires,tem porarily restricted netassetsare reclassified to unrestricted netassets.

14 Page I N atchitochesa ssociation forr etarded C itizens,inc. AdultHabilitation Program and Sheltered W orkshop N otesto FinancialStalenrents June 3,2 3. Estim ates The preparation of financialstatem ents in conform ily w ith generally accepted accounting principles requires m aoagem enlto nrake estim ates and assum ptions thataffectcertain reported am ounts and disclosures. A ccordingly,actualresultscould differfrom those estim ates. 4. ProDertv.Plant.and E Cm idm ent D onations ofproperty,plant,and equipm ent are recorded as supportattheir estim ated fair value. Such donationsare reported asunrestricted supportunlessthe donorhasrestricted the donated asset 1o a specific prnpose. A ssels donated w ith explicitrestrictionsregarding theiruse and contributionsof cash thatm ustbe used to acquire property and equipm entare reported asrestricted supporl. W hen donorstipulatious are absent rcgardiug how long those donated assets m ustbe m aintained,the A ssociation's A dult ttabililation Program and Sheltered W orkshop reportexpirations of donor restrictions when the donated oracquired assetsare placed in service asinstructed by the donor. ]'he A ssociation'sadult Habilitation Program and Sheltered W orkshop reclassify tem porarily restricted net assels to unrestricted netassets atthatlim e. Property and equipm entare depreciated using the straighl-liue m ethod. The A ssocialiou's A dulttlabilitation Program and Sheltered W orkshop have also elected,in 1995,to adopt SFA S N o. 116, "Accounting for Contributions Received and Contributions M ade". In accordance w ith SFA S N o. 116,contributions received are recorded as unrestricted,temporarily restricted,orperm anently restricted supportdepending on the existence and/ornature ofany donor restrictions. The N alchitoches A ssociation forretarded Citizens,lnc.'sA dulth abilitation Program and Sheltered W orkshop areexemptfru m incometaxesunderinternalrevenuecodesection 51(c)(3). 7. C ash Cash ~includes notonly currency on hand butalso dem and deposits with banksorotherfiuancial institutionsand otherkindsof accountsthathave the generalcharacteristicsof demand deposits in thatthe custom erm ay depositadditionalfundsatany lim e and also effectively m ay w ithdraw fim ds atany lim e w ithoutpriornotice orpenalty.

15 Page 1 N atchitoches A ssociation forr etarded C itizens,inc. A dulth abilitation Program and Sheltered W orkshop N otesto FinancialStatem ents June 3.2 N O TE 2 R FSTR1CTIO N S O N A SSET S Restrictionson assetsatjune 3,2 relate to vansobtained by the A ssociation through Section 16 of the FederalTransitA ctw hich provides forcapitalgrants forthe specific purpose of assistance il providing transportation servicesto m eetthe specialneedsof elderly and disabled personsforw hom m ass transportation services are unavailable, insufficient, or inappropriate. The program is adm inislered by tile Louisiana D cparlm cntof Transportation and Developm ent. The vailsobtained w ith these fnnds m ustbe used for transportation services to the elderly and disabled w ithin the A ssociatim l's service area. The Departm ent of Transportation and D evelopm ent m ust be im m ediately notified if the equipm entisnotused in the aforem entioned m annerorif itisw ithdraw n from service. Disposition of the vehicle nm sthave DOTD approvaland m ustbe in conform ance w ith the provisionsof O M B CircularA-12,A ttachm entn. D ispositionsm ustbe atcnrrentm arket value and a portion of the fundsreceived m ustbe returned in proportion to the originalpercentage of Federalfundscontributed. Itisthe policy of the A ssociation'sa dultllabilitation Program to am ortize the assetrestricted over itsestim ated usefullife using the straight-line m ethod. N O T E 3 C A S}t C ash issunlm arized asfollow s Petty Cash D em and D eposita ccounts InterestB earing A ccounts Total $ 1 18,313 6~373 $ A tjune 3(},2,the carrying am ountof the A ssociation'scash depositsw as$78,786 and the bank's balance w as$89,98. A llof the bank'sdepositbalance w ascovered by federaldepositinsurance. N O TE 4 R EC EIVA BLI~;S The N alchilochesa ssociation forretarded citizens,inc.'sa dultilabililation Program entered into a contract on february 1, 1999 w ith the State of Louisiana,D epartm ent of ltealth and llospitals, O fficc fi~r Citizens w ith Developm ental Disabilities to provide habilitation program m ing to a m inim um of22 clientsduring the period July l,1999 to June 3,2. Atthe end of each m onth,a paym ent requisition is forwarded to the O ffice of Com m unity Services requesting paym ent for servicesprovided to clientsduring the m onth ended.

16 Page 12 N atchitoehesa ssociation forretarded C itizens,inc. AdultH abilitation Program and Sheltered W orkshop N otes1o FinancialStatem ents June 3.2 ReceivablesatJune 3,2 consisted of the follow ing: State of La.,l)epartm entof H ealth and H ospitals O ffice forc itizensw ith D evelopm entald isabilities State of La.,Departm entof Health and ttospitals,title X 1X Tota $14,864 2,449 $LL313 NOTE 5 PLANT AND EQ UIPM ENT A llplan!and equipm entare stated athistoricalcost. D epreciation ischarged asan expense against operationsand hasbeen provided overthe estim ated usefullivesusing the straight-line m ethod. The estim ated usefullivesare as follow s: Furnitnre and Fixtures A utom obiles M achinery and Equipm ent 7-1 years 5 years 5-7 years A snm m a13'of plantand equipm entatjune 3,2,ispresented below C o _ ost A ccum ulated _l _ )e~ reciation _ N ejt D epreciation ThisY ear Furnilure & Fixtures A utom obiles l~tlihting & Eqnipm en $ 26,79 S25,72 6,77 2, ~ ,21 $ 1,7 4,118 1,37 _ 2 $ 899 8, = /_13 _ Tota The A ssociation's A dult llabilitation Program autom obiles w ere partially funded by U rban M ass Transpmtation CapitalImprovementGrantsand aresubjectto theapplicablerestrictionsdescribed in N ote 2. M ailtcnance and repairs are charged to operations w hen incurred. Betterm ents and renew als are capitalized. W hen plantand equipm entare sold orotherwise disposed of,the assetaccountand related accum ulated depreciation accountare relieved,and any gain orlossisincluded in activities. N O TE 6 LFA SE O B LIG A TIO N S The N alehilochesa ssociation forretarded C itizens,lnc.'sa dult]tabilitation Program and Sheltered W orkshop rents its prem ises nnderan operating lease. Tile lease is for a one-yearterm ending on June 3,2 w ith an option fora one-yearrenew ah

17 Page 13 N atchitochesa ssociation forretarded C itizens,inc. A dulthabilitation Program and Sheltered W orkshop N otesto FinancialStatem ents June 3,2 Future m inim um rentalpaym ents under this operating lease are $18, forthe fiscalyearended June 3.2(11. Tile NatchitochesA ssociation forretarded Citizens,lnc.'sAdultHabilitation Program and Sheltered W orkshop are notparticipating in any capitallease arrangem ents. N O TE 7 EM P1A)Y EE R ETIR EM EN T SY STEM S A ll em lrloyees of the A ssociation's A dult Habilitation Program and Sheltered W orkshop are protected by the SocialSecurity System. A llem ployeescontribute 6.2% of theirtotalsalary to the system,w hile the A ssociation's A dultitabilitalion Program and Sheltered W orkshop a like am ount. For the year ending June 3,2 totalcontributions to the system were $15,338 of which the Association's Adult tlabilitation Program and Sheltered W orkshop contributed $7,669 and em ployeescontributed $7,669. Totalpayrollcovered by this system forthe yearended June 3,2 was $123,693. Any future deficitin lhis system w illbe financed by the United States G overnm ent. The A ssociation's A dult tlabililalion f'rogranr and Sheltered W orkshop have no further liability to the system for the year ended June 3.2. NO TE 8 CO M PENSATED A BSEN CES The A ssociation's A dultllabililation Program and Sheltered W orkshop em ployees are entitled to certain com pensated absencesbased on theirlength of em ploym ent. Each salaried em ployee accrues leave according to the State CivilService guidelines,based on length of servicc asfollow s: u/l-tire E _ 'mj21oym ent -3 Y ears 3-5 Y ears 5-1 Y ears 1-15 Y ears M ole Than 15 Y ears D aysearned PerY ear These are considered personalleave daysand m ay he used forany purpose the em ployee desires.n o distinction ism ade between annualand sick leave. Leave earned in one fiscalyearcannotbe carried overto a subsequentyear. Em ployees are also entitled to com pensatory tim e on an hour-for-horn basis forappro ved overtim e. Com pensatory tim e notused in lhe fiscalperiod thatitis earned cannot be carried overto tile nextfiscalyearand w illbc forfeited. Conl]reusaled absences do notvestor accum ulate and are recorded as expenditures w hen they are paid.

18 Page 14 NatchitochesA ssociation forretarded Citizens,Inc. A dulthabilitafion Program and Sheltered W orkshop N otesto FinancialStatem ents June 3.2 N O TE 9 13T IG A T IO N A ccording Io m anagem ent, the N atcbitoches Habilitalion Program and Sheltered W orkshop 2. NO TE 1 STEW A R DSltlP,CO M PLIAN CE,AN D A CCO UNTA BILITY A ssociation for Retarded C itizens, lnc.'s A dult w ere not involved in any litigation as of June 3, The N atchitochesa ssociation forretarded Citizens,lnc.'sA dult]tabilitation Program entered into a contractw ith the State of Louisiana D epartm entof H ealth and tiospitals,o ffice of ttum an Services to provide adulthabilitation services. Transactionsof the A ssociation'sadnl!habilitation Program were made in accordance with therequirem entscontained in Formula F~m ding and Guidelinesfin" A Iowabh"Costsin Adultllabilitation ServicesContracted ~a,ith the Division of M entalretardation land D evelopm ental D isabilities. A ll contract services invoiced under this contract w ere not recovered underany othercontract. N O TE 11 I~O A R I)O F D IR EC TO R S M em bersof lhe Board of D irectorsparticipate on a voluntary basisand receive no com pensation for theirservices.

19 SU PPLEM EN TA RY IN FO R M A TIO N

20 ExhibilE Page 16 N atchitochesa ssociation forretarded Citizens,Inc. AdultHabilitalion Program and Sheltered W orkshop A dultttabilitation Program Statem entof FinancialPosition Y earended June 3,2 W ith Com parative Am ountsfrom Y earended June 3,1999 A SSETS: C ash Receivables- State of Louisiana,D epartm entof H ealth and tlospitals, O ffice lbrc itizensw ith D evelopm entald isabilities State of Louisiana,l)epartm entof H ealth and H ospitals, Title X IX Plantand Equipm ent,n etof A ccum ulated D epreciation for2 and 1999 of $45,661and $36,9,respectively TotalA ssets 2 $ 68,77 14,864 2,449 41J25 $~ J~ 1999 $ ,399 3,276 5,696 LIA BILITIES: A ccounts Payable PayrollTaxesPayable $ $ TotalLiabilities $ L_~58 $. 1,38_6 N I'T A SSETS: U nrestricted Tem porarily P,estricted TolalN ela ssets TotalLiabilities& N eta ssets $ 76,67 ~ _79 $12~5,[;~ $ 75,348 _ 4839 $. 124,138 $j25.524

21 ExhibilF Page 17 N alchitochesa ssociatkm forretarded C itizens,inc. Adultttabilitation Program and Sheltered W orkshop A dult~labilitation Program Statem entof A ctivities Y earended June 3,2 W ith Com parative Am ountsfrom YearEnded June 3,1999 U NRI'STR1CTH ) N ET A SSETS: Support- Fees- Stale of l.ouisiana,d epartm entof H ealth and 11spitals, O ffice forc itizensw ith D evelopm entald isabilities Slate ofl.ouisiana,d eparhnentof SocialServices LRS Slate of Louisiana,D epartm entof H ealth and llospitals, Title X [X G rant O ther N eta ssetsreleased from Restrictions- FederalTransitAdm inislration Section 16 D epreciation on Restricted V ans $177,165 28, $189,757 3,156 23,639 26,762 1,216 8,673 TotalRevenues,G ains,and O ther Support EX PEN SI'S: Program Services M anagem entand G enera TotalI;xpenditurcs ncrease in U nrestricted N eta ssets $2oz, 7 ~ 9 $15,999 $2o _~6 ~3o $ 719 $253,23 $152,298 55J 3 $28,28 $ _ 45,175 TEM PO R ARILY RESTRICTED N ET A SSETS FederalTransitAdm inistration Sec 16 Curren!Y eard epreciation S (8,673) D ecrcase in Tem porarily Restricted N eta ssets Increase in N etassets N eta ssets-p,eginning of Y ear N eta ssets-end of Y ear $ $ 719 ~ 1_38 $12 _4~ 5=_Z $ _ (8,673) $ 36, $ J24~ 12~S

22 ExhibitG Page 18 N atchitochesa ssociation forretarded C itizens,inc. Adultltabilitation Program and Sheltered W orkshop Adultttabilitation Program Slatem enlof Cash Flow s YearEnded June 3,2 W ith Com parative A m ountsfrom YearEnded June 3,1999 CA SI1FLOW S FROM O PERATING A CTIVITIES Change in N eta ssets Adjustmentslo Reconcile Changein NetAssets to NetCash Provided by (Used In)Operating Activities- I)epreciation (Increase)/Decreasein Receivables (lncrease)/decreasein Prepaid Assets lncrease/(decrease)in AccountsPayable lncrease/(decrease)in PayrollTaxesPayable 2 $ 719 9,571 (1,637) $ 36,52 9,685 (3,756) 6,6 462 NetCash Provided By/(Used In)Operating Activities $_8,_9_24 $ CA SItFLO W S FRO M IN V ESTIN G A CTIV ITIES Purchase of Equipm ent Sale of Fqnipm ent NetCash Provided By/(Used In)Investing Activilies CA SIIFLO W S FRO M FINAN CIN G A CTIV ITIES PrincipalPaym enton N ote Payable NetCash Provided t3y/(used In)Financing Activities Netlncrease/(Decrcase)in Cash Cash-Beginning of Year $ $ o $ $ _ $ 8,924 5_ g9j5_3 $6~92Z 5(34,273) 6,668 $(27,65) $ (5,154) $ 16,77 42~446 $~ Jo53

23 Exhibit11 Page 19 N atchitochesa ssociation forretarded C itizens,inc. AdultHabilitation Program and Sheltered W orkshop Adulttlabilitation Program Statem entof FunctionalExpenses Y earended June 3,2 Program Services M anagem en and G _ eneral fotal CO M PEN SA TIO N A N D RELA TED EX PEN SFS O f icers'salaries O thersalaries PayrollTaxes W orkm an'scom pensation Insurance $ 8,3 6,181 $23,916 18,96 3,329..~2~983 $ 23,916 98,99 9,51 2,983 TotalC om pensation and R elated Expenses $ $ $~ 399 OCCUPAN CY I:!X PEN SES Rent Repairs and M aintenauee Utilities $ 19,5 1,934 4,68 $ $ 19,5 1,934 4,68 TotalO ccupancy Expenses TRAN SPO RTA TIO N EXPEN SES Fuel& O il $._:.35,114 $. S. 35,114 $. _ 13,457 $ fl $.13,457 O TItER EX PEN SES A ccounting l)eprecialion Insurance Licenses Telephone O lher $ 8,672 7, $ 4, $ 4,3 9,571 7, TotalO therexpenses $ 16,217 $~ 343 $ _ 22,56 TotalFunctionall'xpenses $ L592~ 9_

24 ExhibitI Page 2 N atchitochesa ssociatinn forretarded C itizens,inc. AdultH abilitatiou Program and Sheltered W orkshop Sheltered W orkshop Statem entof FinancialPosition YearEnded June 3,2 W ith Com parative A m ountsfrom YearEnded June 3,1999 A SSETS: (;ash Planland t';quipm enl,n etof A ccum ulated D epreciation for2 and 1999 of $15,21 and $13,988,Respeclively T otala ssets LIA BILITIES A N D N ET A SSETS LIA BILITIf!',S: A ccountspayable PayrollPayable 2 S ~y~72 $ $ 9,422 2,367 $1L2~ S 455 1,315 $ 46. S 177 N ET A SSI:TS Unrestricled TolalN ela ssets TotalLiabililiesand N ela ssets $2LL~! $1.!L621 $!2~9.~_t S1,19 slo~ol _ 9

25 t'xhibitj Page 21 N atchitochesa ssociation forretarded Citizens,Inc. A dulth abilitation Program and Sheltered W orkshop Sheltered W orkshop Statem entof A ctivities Y earended June 3,2 W ith Com parative A m ountsfrom Y earended June 3,1999 U N RESTRICTI!D N ET A SSETS: Support- C ontributions- Businessesand O rganizations Individuals ContractW ork Soft D rink Sales O ther TotalRew mues,g ains,and O thersupporl 2! ,775 3,221 5~691 $ 2, ,551 5,2 232 $32~ ,712 EX PEN SES: Program Services M anagellentand G enera TotalExpenses (Decrease)in NelAssets', N eta ssets-beginning of Y ear N eta sses-end of Y ear 526,251 4~834 $M & ~_ s5 $ 1,62 1L19 SJ& 6~~ 524,885 4,449 $29,334 $ (622) 1,641 5~ 9

26 ExhibitK Page 22 N atchitochesa ssociation forretarded Citizens,Inc. A dulth abilitation Program and Sheltered W orkshop Sheltered W orkshop Statem entof Cash Flow s YearEnded June 3,2 W ith Comparative Am ountsfrom YearEnded June 3,1999 CA SttFLO W S FRO M O PERA TING A CTIV ITIES Change in N eta ssets Adjustmenlsto ReconcileChangein NetAssets to N etc ash Provided by Operating A ctivities- D epreciation lncrcase/(i)ecrease)in AccountsPayable lncrease/(i)ccrease)in PayrollPayable 2 $ 1,62 1,213 5 ZL,315) 1999 $ (622) 1,226 (29) 198 N etcash Provided By/(Used In)Operating Activities $_LI55 $ 773 CASItFLOW S PROVIDED BY/(USED IN)INVESTING ACTIVITIES Purchase of Equipm ent Net(?ash Provided By/(Used In)Investing Activities N etincrease in C ash C ash-beginning o f Y ear $~ _218) $~ 2]8) $ 1,287 ~ 4_22 $!.79 $ LL23~) 1 SDL2Lg_) $ (466) $_9~

27 ExhibitL Page 23 N atchitoches A ssociation forretarded C itizens,inc. AdultHabilitalion Prograln and Sheltered W orkshop Sheltered W orkshop Statem entof FunctionalExpenses Y earended June 3,2 CO M PEN SATIO N AN D RELATEI) EX PENSES C lientsalaries W orkm an's(7ol'upensation Insurance O thersalaries PayrollTaxes Program Services $14, M anagenaent and G eneral $ 253 I ~ Total $14, TotalC om pensation and Related Expenses $15,11 $ 253 $15,264 O TIIER I'~X t'i'~n SES: Depreciation Food Telephone & U tilities Postage Repairs and M aintenance Building and G rounds Equipm ent Supplies- O fi ce W orkshop SoftD rinks; Recreation Travel O ther , , , , , , ,22 8 3, ,751 TolalO therexpenses $11,24 $4, _58~ $15,821 TotalFunctionalExpenses $ $4.83~

28 INTERN A L CON TRO l,an D COM PLIAN CE

29 Johnson,Thom as & Cunningham Certified Public A ccountants EddieG.Johnson,CPA -A ProfessionalCorporation( ) M ark D.Thomas,CPA - A ProfessionalCorporation RogerM.Cunningham,CPA -A ProfessionalCerperation 321BienvilleStreet N atchitoches,louisiana (318) Fax (318) REPO RT ON CO M PLIA N CE A N D O N IN TERN A L CO N TRO L O VER FINA N CIA L REPO RTIN G BA SED ON A N A U DIT O F FIN AN CIA L STA TEM EN TS PERFO RM ED 1N A CCO RD AN CE W ITI1G O VERNM EN TA UD ITIN G STAND ARDS To the Board of D irectorsof N atchitochesa ssociation forretarded Citizens,lnc N atchitoches,1.a W e have audited the financialstatem ents of the N atchitoches A ssociation forretarded C itizens,inc.as of and fortileyear ended June 3,2,and have issued ourreportthereon dated D cccm ber2,2. W e conducted our audit in accordance w ith generally accepted auditing standards and the standards applicable to financialaudits contained in G overnm enta uditing Standards,issued by the Com ptroller G eneralof the U nited States. Com pliance A s part of obtaining reasonable assurance about w hether the N atchitoches A ssociation for Retarded Citizens, lnc.'s financial statem ents arc free of m aterial m isstatem ent, we perform ed tests of its com pliance w ith certain provisionsof law s,regulations,contractsand grants,noncom pliance w ith w hich could have a directand m aterialeffecton the determ ination of financialstatem ents am ounts, ttow ever, providing an opinion on compliance with those provisions was notan objective of ourauditand, accordingly,w e do not express such an opinion. The results of our tests disclosed no instances of noncom pliance thatare required to be reported underg overnm enta uditing Standards. nternalcontrolo w,rfinancinu Renortine In planning and perfbnning ouraudit,w e considered the N atchitochesa ssociation forretarded C itizens, lnc.'s intern al contro l over financialreporting in order to determ ine our auditing procedures for the purpose of expressing our opinion on the financial statem ents and not to provide assurance on the internal control over financial reporting. O ur consideration of the internal control over financial reporting w oaklnotnecessarily disclose allm atters in the intern alcontrolover financialreporting that m ightbe m aterialw eaknesses. A m aterialw eakness is a condition in w hich the design oroperation of onc or m ore of the internalcontrolcom lm nents does not reduce to relatively low levelthe risk that m isstatem entsin am ountsthatwould be m aterialin relation to the financialstatem entsbeing audited m ay occurand notbe detected w ithin a tim ely period by em ployees in the normalcourse of performing their assigned fnnctions. W e noted no m atters involving the internalcontrolover financialreporting and its operation thatw e considerto be m aterialw eaknesses.

30 ExhibitM Page 26 This report is intended solely for the inform ation and use of the m anagem ent of the N atchitoches Association forretarded Citizensand the Legislative A uditorof the Slate of Louisiana,othersw ithin the organization and federalaw arding agenciesand pass-through entitiesand isnotintended to be and should notbe used by anyone otherthan these specified parties. Johnson,Thom as& Cunningham Johnson,Thom as& Cunningham,CPA 's D ecem ber2,2 N alchitoches,i~ouisiana

31 ExhibitN Page 27 N atchitochesa ssociation forretarded Citizens,Inc. A dulth abilitation t'rogram and Sheltered W orkshop Board of D irectors June 3(1,2 President V ice-president Secretary W illiam E.W ealherford Patricia Roshto ldellw.snow den W ayne K ing 13nard M em bers Jim m ie D ellk nighton Loura Frye M ary Ann King W.D.Braxton Janie A dam s