LO U ISIA N A R ESO U R CE C EN TER FO R ED U CA TO R S D ECEM BER A N D 1999

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2 LO U ISIA N A R ESO U R CE C EN TER FO R ED U CA TO R S D ECEM BER A N D 1999

3 TA BLE O F C O N TEN TS ndenendenta uditors'r enort Statem entsof FinancialPosition Statem entsof A ctivities Statem entsof FunctionalExpenses Statem entsof Cash Flow s N otes Io FinancialStatem ents Reporton Com pliance an d on InternalControlO verfinancial Reporting Based on an A uditof FinancialStatem ents Perfom led in A ccordan ce w ith G overnm enta uditing Standards

4 Posilethw atte 8:N et ervllle A ProfessionalAccaunting Corporalon AssocialedO ficesinprincipalcpliesatsheunited Stales EPE Board of D irectors Louisiana Resource CenterforEducators Baton Rouge,Louisiana W e have audited the accom panying statem entsof financialposition of the Lo uisiana Resource CenterforEducators asof D ecem ber31,2000 and 1999,and the related statem entsof activities,functionalexpenses,and cash flowsfor the years then ended.these financialstatem ents are the responsibility of the O rganization's m anagem ent.o ur responsibility isto expressan opinion on these financialstatem entsbased on ouraudits. W e conducted ouraudits in accordance w ith generally accepted auditing standards an d GovernmentAuditing Standards,issued by the Com plrollergeneralof/he United States.Those standardsrequire thatwe plan and perform the auditsto obtain reasonable assurance aboutw hetherthe financialstatem entsare free of m aterialm isstatem enl. A n auditincludes exam ining,on a testbasis,evidence supporting the am ountsand disclosures in the financial slatem ents.an auditalso includesassessing the accounting principles used and significan testimatesm ade by m anagem ent,asw ellasevaluating the overallfinancialstatem entpresentation. W e believe ourauditsprovide a reasonable basisforouropinion. In ouropinion,the financialstatem entsreferred to above presentfairly,in allm aterialrespects,the financialposition of the Louisiana Resource CenterforEducatorsasof D ecem ber31,2000 and 1999,and itsactivities,fan ctional expenses,and cash flow sforthe yearsthen ended in conform ity w ith generally accepted accounting principles. 11accordance w ith G overnm entala uditing Standards,w e have also issued ourreportdated A pril9,2001,on our consideration of the O rganiza tion's internalcontroloverfinancialreporling and ourtestsof itscom pliance w ith certain provisions of law s,regulations,and contracts.thatreport is an integralpartof an auditperform ed in accordancewith GovernmentAuditing Standardsand should beread inconjunction with thisreportin considering the resultsof ouraudit. B alon Rouge,Louisiana A pril9,200] 8550 United Plaza Blvd,Suite 1001 Baton Rouge,LA ]el: Fax:

5 R 'A CURRENT A SSETS Cash and cash equivalents A ccounts receivable Inventory Prepaid expenses Totalcurrentassets ,034 73,458 6,714 1, ,066 60, R Furn iture and eq uipm ent Building improvem ents Library Less:accum ulated depreciation TotalA sset s 215, , ,298 (167,656) , , ,941 (105,616) 224, L IA B IL IT IE S A N D N E T A S S E T S E A ccountspayable Oilierliabilities Totalcurrentliabilities 87, $ 11,657 8, NET A SSETS Unrestricted Tem porarily restricted Totalnetassets 282, , TotalLiabilitiesand N eta ssets $ The accom panying notesare an integralpartof these sta tem ents - 2 -

6 D Unrestricted 2000 Temporarily Restricted Total SUPPO RT A ND R EVEN UE: Public support Grantfrom govern m entalagency Program service fees Interestincom e M iscellaneous Totalsupportand revenue N etassetsreleased from restriction 159, , ,924 6, $ 255, , , $ 414, , ,924 6,776 12, ,415 Totalrevenue and othersupport 893, EX PEN SES: Program services M anagem entand general Fundraising Tota lexpenses 588, , , , Increase(decrease)in netassets N etassets-beginning of),ear 44,283 4, , N etassets-end of year $ 282, The accom panying notesare an integralpart of these sta tem ents - 3 -

7 1999 Unrestricted Temporarily Restricted Total $ 61, , ,653 3,903 $ 240, , , , , ,653 3, , (207,350) , , , , ~4,088) 32,909 ~ 1,179) $ 238, , $ 373,

8 2000 program Services M anagem ent and General Total EXPENSES Advertising Contractlabor Consulting fees Bank charges D epreciation & am ortization Directprogram ch~uge Donorappreciation D ues& subscriptions Em ployee training Equipm ent ]nsuiance Janitorialservices Licenses and permits M iscellaneous M oving fees Pa)xollfees Postage ]'tinting Professionalservices Projectpresenter Prom otionalcoupons l~.enlalexpense Repairs & m aintenalce Salaries Sales tax Staf m otivation incentives Stipends Supplies Telephone ]'ravel& entertairmaent Utilities W orkshop presenter 5,523 6,352 2, ,000 2,838 1, , , ,349 10,737 22,812 57,923 17,370 2,820 1,376 1, , ,927 18,744 20,451 11,403 17,402 6, , ,240 70,939 2, ],605 2,912 1,951 4, ,881 9,424 2,860 42,032 4,084 1, O6 15,046 2,500 2,519 7, , , ,523 4,175 37, ,397 $ 6,854 11,965 2,788 1,656 70,939 33,000 5,916 2,764 1,650 20,619 2,777 5, , ,230 17,260 26,987 67,347 17,370 5,680 43,408 5, ,978 1,518 2,633 18,744 35,983 13,903 21,318 14, $ $ 849,312 The accompanying notesm'c an integralpartoffl~ese statem ents

9 1999 Progrflm Services 9,90 1,53 9, ,761 2,135 1,773 12,070 1,810 1,018 44,356 7,273 5,413 14,202 13,180 4, , ,953 2, ,751 5,506 10,025 16,607 3,272 4,925 M anagelnerfl and General , ,300 1,473 1,806 4, (55) 14,726 3,662 19,998 40,011 6,418 67,091 2,267 2, ,168 5,201 1, $ 276,700 9, ,684 2, ,707 2,318 $ 18,873 Total 19,442 2,387 10, ,773 37,532 2,135 7,073 13,543 3,616 5, (55) 59,082 13,619 7,665 34,295 13,180 4,260 40,122 8, ,044 4,810 2,525 15,762 31,381 15,226 20,551 12,893 4,925 $ 793,

10 D C ASH FLO W S FRO M O PERA TING A CTIVITIES Change in netassets Adjustmentsto reeoucilechangein netassetsto net cash provided by (used in)operating activities: D epreciation and am ortization Losson salesof property and equipm ent Changesin operating assetsand liabilities: A ccountsreceivable Prepaid expenses Inventor), A cco untspayable and otheraec~'ued liabilities Netcash provided by (used in)operating activities $ 49,103 $ (21,179) 70,939 7,084 (13,123) (509) (6,714) ,773 (42,289) (747) (4,331) (4,773) CA SltFLO W S FRO M INVESTING A CTIVITIES Purchasesof property and equipm ent Proceedsfrom salesof property and eq uipm ent N etcash used in investing activities (94,358) (30,998) (30,998) Netincrease(decrease)in cash an d cash eq uivalents Cash an d cash equivalents -begitm ing of year Cash and cash eq uivalents-end of year 88,968 (35,771) $ The acco m panying notesare an integralpart of these stato m ents - 7 -

11 LO UISIAN A R ESO U R C E C EN TER FO R ED U CA TO R S BA TO N R O U G E.LO U ISIAN A N O TES T O FIN AN C IAL STATEM EN TS O reanization and Purpose Louisiana Resource CenterforEducatorsisa non-profitorganization w hich w as organized to receive and adm inisterfundsexclusively forcharitable and educationalpurposes,nam ely responding to the needs of Louisiana educators,students,and citizensby providing innovative opportunities in the areasof science, m athem atics,technology,and environm enta leducation.the sourcesof incom e to the Organization include donations(publicsupport),grantsfrom governmentalagencies,andfeeschargedforworkshops. Rasis of A ccountine and Ret~ortina The Organiza tion preparesitsfinancialstatem entson the accrualbasisof ac ounting.a ccordingly,revenues are recognized w hen earned and expensesare recognized w hen incurred. IncomeTaxes The O rganization hasbeen recognized by the InternalRevenue Service as a not-for-profitorganization as described insection 501(c)(3)of theinternalrevenuecodeand isexemptfrom federalincometaxes. Revenue Recognition Contributionsreceived arc recorded as unrestricted,tem porarily restricted,orperm anently restricted netassets depending on the existence ornature of any donorrestrictions.a llotherdonor-restricted support isreported as an increase in tem porarily restricted netassets,depending on the nature of the restriction. W hen a restrictionexpires(thatis,when astipulated timerestriction endsorpurposerestriction isaccomplished), tem porarily restricted netas setsare reclassified to unrestricted netassetsand reported in the Statem entof A ctivitiesasnetassetsreleased from restrictions.the O rganization did nothave perm anently restricted net assets ato eoenxber31,2000 or1999. P propert~ and Equipment Properly and equipm entisrecorded atcost. D epreciation of property and equipm entisbased upon the estim ated usefulservice liveswhich range from 3 to 7 years,using the straight-line m ethod.m aintenan ce and repairsare charged to expense,w,hilc additionsand im provem entsare capitalized. A sof January 2,2001,theOrganiza tion relocated itsofi ces.the netbook valueof leasehold improvem ents to bewritten of in 2001is$76,536. A llow ance foru ncollectible A ccounts A sof D ecem ber31,2000 and 1999,allaccountsw ere considered collectible;therefore,no allow ance for uncollectible accountshasbeen established

12 LO U ISIAN A R ESO U R C E CEN TER FO R ED U C A TO R S BA TO N R O U G E,LO U ISIAN A N O TE S TO FIN A N C IA L STA TE M EN T S ta ccouniin~ Policies- Estim ates The preparation of financialstatem entsin conform ity w ith generally accepted accounting principlesrequires m anagem entto m ake estim atesand assum ptionsthatafectthe reported am ountsof assetsand liabilitiesand disclosure of contingentassets and liabilitiesatthe dale of the financialstatem ents and the reported am ounts of revenuesand expensesduring the reporting period.a ctualresultscould diferfrom those estim ates. Contributed Services The O rganization recordscontribution revenue force rtain serv icesreceived attile fairvalue of those services, provided those serv icescreate orenhan ce non-financialassetsorrequire specialized skillswhich are provided by individualspossessing those skillsan d w ould typically need to be purchas ed,if notprovided by donation. D uring the years ended D ecem ber 31,2000 and 1999,the value of contributed services m eeting the requirem entsforrecognition in the financialstatem entsw as notm aterialand w as notrecorded. D onated Facilities Donated m aterialsand equipm entare reflected as contribution incom e and expense in the accom panying financialstatem entsattheirestim ated valuesatthe dale of rece ipt.the O rgan iza tion operales,w ith a m inim al charge,eertain prem isesupon w hich theiroffice islocated.the estim ated fairrentalvalue of the prem isesis reported assupportand expense in the yearin w hich the prem isesisused. Cash and Cash Eouivalents For purposes of reporting cash flows,cash equivalents include allhighly liquid debt instrum enls and certificatesof depositw ith originalm aturitiesof three m onthsorless. A dvertising The O rganization expensesthe costof advertising as incurred.tota ladvertising expense fortile yearsended D ecem ber31,2000 and 1999 were $6,854 and $19,442,respectively. Reclassification Certain am ounts in the 1999 financialstatem ents have been reclassified to confom ~to the currentyear presentation.in particular,the revenue an d related netas setsreleased from restriction w ere reclassified from the tem porarily restricted colum n to unrestricted bas ed on the nature of the grantbeing relating to general operating activities

13 LO U ISIA N A RE SO U R CE C EN TER FO R ED U C ATO R S B A N O TES TO FINA N CIA L STA TEM EN TS 2 3. Te D uring the yearended D ecem ber31,2000 and 1999,the O rganization derived approxinra tely 38% and 43%, respectively,of itssupportand revenue from the D epartm entof Econom ic D evelopm ent. Tem porarily restricted netassetsw ere available forthe follow ing purposesatd ecem ber31,2000 and 1999: Library Experience Science Saturday Leadership Program and Conference LEAP Rem ediation Technology M uralsin A llen H all Teach forsuccess South LA Field Trip Book TravelG rants OtherM iscelaneousprojects 4,180 $ 3,027 1,953 34,301 12,529 15,000 69,354 L 149~44 14,275 1,675 3,275 7,736 5,000 44,340 15,000 44, N et N elassetsreleased from donorrestrictionsforincurring program related expensessatisfyingtherestricted purposes are asfollow s: Equipm entpurchases Library Experience Science Saturday Leadership conference and program STW -G raduate Course Teach forsuccess Y ear2000 Conference Food from the Bayou TravelG rants A m m onia Producers South LA Field Trip Book O therprogram Expenses TotalRestrictions Released $ 19,615 $ 28,804 20,765 22,898 30,747 10,000 13,000 12,000 11,000 31,811 49,872 15,109 9,156 33,532 31,502 19,000 6,598 12,000 13,000 67,

14 L eases On February 1,1998,the Organization entered into an agreem entto lease itsoffice facilitiesuntilthe lease expired on January 31,2003;however,asof January 1,2001,the Organiza tion relocated to a new location and term inated thislease.the annuallease paym entwas$10.the fairm arketvalue of theleasepaym entsis$40,000 asof D ecem ber31,2000 and The Organiza tion'snew lease foritsoffice space began January 2001and isfora term of three yearsat$10,000 perm onth. Th e Organiza tion entered into two operating leasesduring the yearended D ecember31,1999 forcopiers.both copiersare leased underfive-yearoperating leases.th e leasesexpire in O ctober2003 and D ecember2004.th e leases are renew able on the sam e term s on a m onthly basis unlessthe option to purchase atfairm arketvalue is exercised orthe equipm entisreturned. Totalrentexpense,excluding the donated facility,charged to operationsw as$4,202 and $2,037 during the years ended D ecem ber31,2000 and 1999,respectively.Future obligationsforthislease atd ecem ber31,2000 were asfollow s: Y earending D ecem ber31, Thereafter A m ount $ 124, , ,742 2, Concentration of C reditr isk Th e Com pany'sfinancialinstrum entsthatare exposed to concentrationsof creditrisk consistprim arily of cash equivalents.th etotalcash balancesare insured by the F.D.1,C.up to $100,000 perbank.thecompany had cash balanceson depositw ith one bank in Baton Rouge,Louisiana atd ecem ber31,2000 thatexceeded the balance insured by thef.d.1.c.by $64,974.M anagem entbelievestherisk associated w ith thisism inim al

15 Posllelhw at e & N ctlervlllc A ProfessionalAccounting Corporation AssocialedO ficesinprincipalcjlje$o[lheunited Stales F D To the Board of Directors Louisiana Resource CenterforEducators Baton Rouge,Lo uisiana W e have audited the financialstatem entsof Louisiana Resource CenterforEducators,asof and forthe yearended D ecem ber31,2000,and have issued ourreportthereon dated April9,2001.W e conducted ourauditin accordance w ith generally accepted auditing standardsand the standardsapplicable to financialauditsconta ined in Governm ent A uditing Standards,issued by the Com ptrollerg eneralof the U nited States. C om pliance A s part of obtaining reasonable assurance aboutwhether Louisiana R esource Center for Educators' financial statem entsare free of m aterialm issta tem ent,w e perform ed testsof itscom pliance w ith certain provisionsof law s, regulations,contracts and grants,noncom pliance w ith which could have a direct and m aterial effect on lhe determ ination of financialsta tem entam ounts.h ow ever,providing an opinion on com pliance w ith those provisions wasnotan objectiveofouraudit,and accordingly,wedo notexpresssuch an opinion.theresultsofourtests disclosed no instancesof noncom pliance thatare required to be reported undergovernm entauditing Standards. nternalc ontrolo ver FinancialR enortin~ In planning and perform ing our audit,w e considered Louisiana Resource CenterforEducators'internalcontrolover financialreporting in orderto determ ine ourauditing proceduresforthe purpose of expressing ouropinion on the financialstatem entsand notto provide assurance on the intem alcontroloverfinancialreporting. O urconsideration of the intern alcontroloverfinancialreporting w ould notnecessarily disclose allm attersin the internalcontrolover financialreporting thatm ightbe m aterialw eaknesses. A m aterialw eakn essisa condition in w hich the design or operation of one orm ore of the internalcontrolcom ponentsdoesnotreduce to a relatively low levelthe risk that m isstatem entsin am ountsthatw ould be m aterialin relation to the financialstatem entsbeing audited m ay occurand notbe detected within a tim ely period by em ployeesin the norm alcourse of performing theirassigned functions.w e noted no m attersinvolving the internalcontroloverfinancialreporting and itsoperation thatw e considerto be m aterialw eaknesses.h ow ever,w e noted otherm atersinvolving the intern alcontroloverfinancialreporting that we have reported to the m anagem entand the Board of D irectorsof the Louisiana Resource CenterforEducatorsin a separate letterdated June 8, United Plaza Blvd,Suite 1001 Baton Rouge,LA Tel: Fax:

16 Thisreportisintended solely forthe infom lation and use of the auditcom m itlee,m anagem entand othersw ithin lhe organization,and isnotintended to be and should notbe used by anyone otherthan these specified parties. Under Louisiana Revised Slatule 24:513,thisreportisdistributed by the Legislative A uditoras a public docum ent. Baton Rouge,Louisiana A pril9,

17 Posilethw atie & N ettervtlle A ProfessionalAccountingCorporation Associoled O ficesinprincipalcitiesofiheuniledsio~es June 8,2001 Board of D irectorsof the Louisiana Resource CenterforEducators Baton Rouge,Louisiana In planning and perform ing ourauditprocedureson the financialstatem entsof Lo uisiana Resource CenterforEd ucators as of and forthe yearended D ecem ber31,2000,w e considered itsintern alcontrolstructure in orderto determine ourauditing procedures forthe purpose of expressing an opinion on the com bined financialstatem entsan d notto provide assur ance on the internalcontrolstru cture. H ow ever,during ourauditw e becam e aw are of severalm attersthatrepresentopportunities for strengthening intern al controls and operating efficiency. The follow ing paragraphs sum m arize ourcom m entsand suggestions regarding those m atters.this letterdoes notafect ourreport dated A pril9,2001,on the financialstatem entsof the Louisiana R esource Center foreducators. Finding D uring ourauditproceduresw e noted an instance w here certa in recordsw ere notm ainta ined in a m annerthatallow sforproperdocum enta tion of expendituresand transactions. A llsource inform ation thatsupports accounting transactions and expenditures for grants should be filed in a m an nerthatprovidesappropriate docum entation forthe activity an d is readily available forinspection United Plaza Blvd,Suite 1001 Baton Rouge,LA ]el: Fax:

18 U W hile perform ing ourauditproceduresregarding accounts receivable,w e noted thatseveral accountsw ere greaterthan 120 dayspastdue. A dditionally,itdid notappearth atanyone w asreview ing the listforpastdue accounts. M anagem entshould review the accounts receivable listing each m onth and follow -up on accountsreceivable greaterth an 90 dayspastdue. W hile w e are awar e thatthe schoolsar e traditionally slow to pay,m anagem entshould be aw are of the accounts thatare severely delinquent,to be sure thatfollow -up co llection effortsare being m ade. W e w illreview the statusof these com m entsduring ournextauditengagem ent. W e have already discussed m an y of these com m entsand recom m endationsw ith LRCE personnel,and w illbe pleased to further discuss,perform any additional studies,or to assist you in im plem enting these recom m endationsatyourconvenience. W e w ould like to expressourappreciation forthe cooperation and courtesies extended to us during ourauditprocedures.w e w ould be pleased to discussthe above m attersorrespond to any questions,atyourconvenience. V ery truly yours,!

19 LBCE LO UISIANA RESO URCE CEN][R FOR EDUCATORS June 12, ]lmktaIthd 'Suitel) ]kin (~allci()w l('ci[(i 17O.Box333(, Ila(.J~Roug{,IA 7092/ Fax:225-92d 3097 I800/Jd NANCY ROBERTS t~ ~ugvedirector 1OBIEtRAin,Chairperson lm ~e,gcr~tcc~ktd MICHAEL7OBRIS1,ViceChairman GenerarNar~agergxterr,alARalrs,Albemarle KW IN RDLIY.B% Scuetarl Re~l~[nterp,ises ROBERI M SlOARl,lreasurer Hibernlagar,R DERBY[CA[MES,lnm,cdiatepallChair Ac(ountlHa,lager,BelSouR, KAY BANN VulcanChemic~liRetired TOM ROGGS BelSouth BREIIN BRINSON A lorrle/keanmjlierlavefirm CHARLESBUJOL St,perintendent,IberrifleP~riR, ED CANCIENN[ Superir~tendenqStlancesParish ROGER1CtOOA~R[ SuperintendentAscensionParish CHRISDONALDSON SupedrJtendentStJohnparish DEtArNEENHERI Conlrlunit~Leader BARBARA FUHRMANN Dear,Corlegeo{Education,LouisianaStateUniversity IOANNEkAMOT]~ PrindparQ enoakspalkdementary JACQULLIN[LEW IS AsstSuperintendento[C~tholicSchools BatonRougeDiocese LLOYD LINDS[Y SuperintendemiW e~tfelidanaparish GARgKAI~EW B SIapcrinteM er~teastbatorlrougeparish GERARD MORGAN Kod,ta~ flrm PEIEPflERHAN guperlnundenlcor,cordiaparish D an K yle,ph.d. l,egislative A uditor State of Louisiana P.O.B ox Baton R ouge,ira D ear D r.k yle, 1am w riting in response to the m anagem entletter w ritten by C andaee W right,a C PA w ith Postlcthw aite & N ctterville,w ho w as engaged to perform the annualauditof the L ouisiana R esource {:enter for Educators/LR C E. W e are pleased w ith the findingsof the auditand realize thatthere are opporiunitiesfor im proving LR C E internalcontrols. T he m anagem entletter described the follow ing areasfor im provem ent: M aintenance of records Finding:During theauditproceduresp&n noted thatone record w asnotm aintained in a m anner thaiallow sfor proper docum entation of expendituresand transactions. R esponse: P& N found thatthe ledger sheetattached to the invoice 1o the D epartm entof Econom ic D evelopm entdid notaccurately reflectthe expenditure of $9, for "non-recurring expenses". T he L R C E staf has located the m issing invoices and w illsend copies to P& N,the legislalive auditor and the executive com m ittee of Ihe board of directors.the LR CE contractw illbe m oved to the G overnor's O ffice for fiscalyear In the future,iaice w illaltaeh copiesof invoices to the ledger sheet.a llpaperw ork w ill be filed asback up to the invoice sentto the G overnor'so fi ce for reim bursem ent. DR MALCOLM N DUPLANIIS SuperintendentAIsumpdonParish 'Tl@igLg7&cbeE'sHdpChildErn"

20 LRCE "lldl.,z7r,~l~oih~i,<i,il,l,.," ) LOUISIANA RESOURC~ CENIH~,FOR EDUCAIORS 7+B lh l~d,suh~d I~(m CauC+lb~u~Cc~l~ Page 2 ]!O.Ilox3336 l{al(m Rout,c,{A (~ 22592/I7600 I~x: {)9? I800/) Finding: W hile perform ing the audit,p& N found thataccounts receivable w ere greater than 120 dayspastdue. A dditionally itdid notappear thatanyone w asreview ing tile listof pastdue accounts. R esponse:t ile LR C E executive director w illreview accounts receivable on a m onthly basis. C ollectionsarc a problem due to tile nature of the w ork and the reliance on state and federalgrants.m any of the clients w ho contractw ith L R C E are schoolsw ith T itle Ifunds (federal)or 8g funds(state).thesefundsdo notbecom e available untilafter the training or service hasbeen rendered and LR C E has provided docum entation to the client, thatthe consultation isover. The length of the consultation m ay be 6-9 m onths. LR C E w illw ork w ith P& N over the com ing m onths to im prove tile areasof m aintaining recordsand accounts receivable. E xecutive D irector

LO U ISIA NA LO CA L G O V ER N M ENT ENV IR O N M ENTA L FA C ILITIES

LO U ISIA NA LO CA L G O V ER N M ENT ENV IR O N M ENTA L FA C ILITIES A N D C O M M U N ITY D EV ELO PM ENT A UTH O R ITY FINA N C IA L STA TEM ENTS D EC EM B ER 31.2000 A N D 1999 Underprovisionsofstste