OLO~,3~'I3 L!~fJ:21. ~ng~r~v~ F~F~FW F[J. Rouge office ofthe [egislative Auditorand,where. appropriate,atthe office ofthe parish clerkofcourt,

Transcription

1 F~F~FW F[J OLO~,3~'I3 L!~fJ:21 ON RO ~_~ _~ ~ng~r~v~ ~ J._ UN E 30,2000 BATON RO~ ISIANA Underprovisions Dfstate law,this reportisa poblici docum ent.a copy ofthe reporthas bec,~s~;')m lted t:o the entity and otherappropriate public officials.the reportis available forpub!ic inspection atthe ~3aton Rouge office ofthe [egislative Auditorand,where appropriate,atthe office ofthe parish clerkofcourt, Release Date. ~.O_.K 2n~

2 2322 'li'clnonld rive,suile 200 Balon Rouge,I,A Phone:(225) Fax:(225) M em hetsa m erican ltl~tit ('eltijied PublicAccoun 1S,Range A venue,sllitc 10 1<nham Springs,I,A 70726,mm ~l;m tm ]o(',cpa Board of D irectors V olunteersof A m erica,g reaterbaton Rouge,Inc H um an Servicesof G reaterb aton R ouge,inc., and B aton R ouge H ousing D evelopm ent C orporation Baton Rouge,Louisiana A ugust31,2000 IndependentA uditor'sreport W e have audited the accom panying C om bining Statem entof FinancialPosition of V olunteersof A m erica, G reater Baton Rouge,Inc.,H um an Services of G reater B aton Rouge,Inc.and B aton Rouge H ousing D evelopm ent Corporation as of June 30,2000,and the related Com bining Statem enls of A ctivities, FunctionalExpenses,an d Cash Flow s for the year then ended. These financialstatem ents are the responsibility of the O rganizations'm anagem ent. O ur responsibility is to express an opinion on these financialstatem ents based on our audit. Inform ation for the year ended June 30,1999 ispresented for com parative purposesonly and w asextracted from the financialstatem entsforthatyear,on w hich an unqualified opinion dated A ugust20,1999 w asexpressed. W e conducted our auditin accordance w ith generally accepted auditing standards,and the stan dards applicable to financialaudits contained in G overnm enta uditing Standards,issued by the Com ptroller G eneralof the U nited States. Those standardsrequire thatw e plan and perform the auditto obtain reasonable assurance ahoutw hetherthe financialstatem entsare free of m aterialm isstatem ent. A n audit includes exmnining,on a testbasis,evidence supporting the am ounts and disclosures in the financial statem ents.a n auditalso includesassessing the accounting principlesused mid significantestim atesm ade by m anagem ent,asw ellas evaluating the overallfinancialstatem entpresentation. W e believe thatour auditprovidesa reasonable basisforouropinion. In our opinion,the accom panying financialstatem ents referred to above presentfiairly,in allm aterial respects,the financialposition of V olunteers of A m erica,g reaterb aton Rouge,Inc.,H um an Services of G reater Baton Rouge,Inc.,and B aton Rouge H ousing D evelopm entcorporation asof June 30,2000,and the changesin netassetsand cash flow sforthe yearthen ended in conform ity w ith generally accepted accounting principles.

3 CON TEN TS A udited FinancialStatem ents IndependentA uditor's R eport. Com bining Statem entof FinancialPosition Com bining Statem entof A ctivities Page Com bining Statem entof FunctionalExpenses. Com bining Statem entof Cash Flow s. N otesto FinancialStatem ents Supplem entary hlform ation Statem entof A ctivities for SpecialProgram s Schedule of Expendituresof FederalA w ards N ationala dm inistrative FeesCalculation Form IndependentA uditor'sr eporton Com pliance and on the InternalControl O verfinancialr eporting B ased on an A uditof Finm lcialstatem ents Perform ed in A ccordance w ith G overnm enta uditin~ Standards IndependentA uditor'sr eport on Com pliance w ith Requirem ents Applicable to Each of itsm ajorprogramsand InternalControlOver C om pliartce in A ccordance w ith O M B Circular A -133 Scheduleof Findingsand Questioned Costs

4 A SSET S V O 1,U N TEER S O F A M ER ICA,G R EA TER BA TO N R O U G E,IN C., ttum A N SE R V IC ES O F G R EA TER B A T O N R O U G E,IN C,A N D BA TO N R O U G E H O U SIN G D EV ELO PM EN T C O R PO RA T IO N CO M BIN IN G STA TEM EN T O F FINA N CIA L PO SITION A S O F JU N E 30,2000 W ITH COM PA R A TIV E TO TA LS FO R 1999 V olunteersof A m erica,greater B aton R ouge,inc. H um an Services of G reater Baton R ouge _, Inc. C urrenta ssets: C ash A ccounts R eceivable Less Allow ance of $25,000 in 2000 and 1999 PledgesReceivable Prepaid Expenses I.and and BuildingsH eld forresale O thercurrenta ssets $ 73,351 1,465,832 11,254 5,537 $ 20, TotalC urrenta ssets Land,B uildings and Equipm ent,atc ostless A ccum ulated D epreciation of $781,791 and $645,764 for2000 and 1999 B aton R ouge A rca Foundation,atFair V alue O ther A ssets TotalA ssets L 1A B II.IT IES A N D N E T A SSE T S C urrentl iabilities: ExcessO utstanding ChecksO verbank Balance A ccountspayable Line of Credit O therliabilities A gency Funds Payable NotesPayable (Due W ithin One Year) TotalCurrentLiabilities L ong-t erm L iabilities: NotesPayable(Due AfterOne Year) N eta ssets: U nrestricted Tem porarily R estricted Perm anently R estricted TotalN eta ssets TotalLiabilitiesand N eta ssets 1,555,974 21, , ,764 53,090 $ 2,500,682 $ 88, , , ,008 20,465 76,667 1,030, ,017 1,063,398 7,069 60,378 1,130, , $ 835,792 $ 64,974 6, , , , $ 2,500,682 $ 835,792 The accom panying notesare an integralpartof thisstatem ent 3

5 V O LU N TEER S O F A M ERICA,G REA TER BA TO N R O U G E,IN (:., H U M A N SER V IC E S O F G R E AT ER BA T O N R O U G E,IN C.A N D BATO N R O U G E H O U SIN G DEV ELO PM EN T C O R PO R ATIO N CO M BIN IN G N'I'A _ T~M EN.~I UP A ts Ilv I11~ FOR TH E Y EAR EN D ED JUN E 30,2000 W ITH COM PAR ATIV E TOTA LS FOR 1999 V olunteerso f A m erica, R evenuesfrom O perations: Public SupportReceived D irectly: Contributions SpecialEvents Public Support Received Indirectly: U nited W ay TotalPublic Support Revenue and,grants ~rom G~verm,aentalAgencies O therr evenue: Program Service Fees RentalIncom e M iscellaneous TotalO therrevenue N eta ssets R eleased from Restrictions TotalRevenuesfi'om Operations Tem porarily Perm anently U nrestricted R estricted R estricte _ $ 340,844 44,679 _ 322.7_~ 2 723,122 7,698, ,396 _.._ , $ 49,207 $ 39,248 49,207 39,248 (64,033) d _ Total._._ $ 429,299 44, , ,577 7,698, ,396 80,.~ 6 312,065 8,798,076 (14,826) 39,248 8,822,498 O perating E xpenses: ttom elessservices Children and Y outh Service M enta lh ealth D evelopm entald isability Corrections Em ploym er,tand Trainm g tlealth Care Services H ousing TotalProgram Services M anagem entand G enel~l Fund Raising Tota lsupporting Serv ices Adm inistrative FeesPaid to N ationalorganization Tota lo perating Expenses Excess(Deficit)from Operations 513,671 1,673,754 2,163,322 2,745, ,403 8,268 98,236. _ 40,$43 7,629, , ,526 _ _8, , ,67i 1,673,754 2,163,322 2,745, ,403 8,268 98,236 4~ 7,629, , , , , ~ Non-Operating Gains(Losses)and O ther Incom e InterestIncome (NetofExpensesof$1,024) Gain (Loss)on Sale ofasset U rtrealized G ain on Investm ents Surplus(Deficit)from OtherActivities 5,600 1,745 _ A5,739 22,339 1,745 7,345 16,739 24,084 Change in N etassets N eta ssets-b eginning of Y ear N etassets-end of Y ear 43,470 A.,~19~928 0 $ 1,063,398 (13,081) 20.[50 $ 7,069 _ 39,248 2!~l3._Q0 $ 60,378 69, ,20~ $ 1,130,845 The accom panying r~otesare an integralpartof thisstatem ent. 4

6 B aton R ouge H ousing D evelopm ent C orooration Elim in~ ions 2000 Com bined Totals 1999 Com bined Totals $ 42 $ $ 93,601 $ 125, ,176 (77,143) 1,389,630 11,254 5, ,176 1,152,696 5,416 3, ,295 2, ,:218 (77,143) 1,609,198 1,438,264 1,528, ,764 53,130 1,479, , _~ 9, 19 _ $ 109,218 $ (77,143) $ 3,368,549 $3,126, ,14J. 116,448 $ 88, , , ,601 20, ,204 (77,143) 1,178,088 $ 112, ,960 39, ,208 19, , ,104 (7,230) (7,230) 915,233 1,207,781 7,069 60,378 1,275, ,485 1,160,003 20,150 21,130 1,201,283 $ 109,218 $ (77,143) $ 3,368,549 $ 3,126,872

7 H um an ServicesO f G reater B aton R oute Inc U nrestricted B aton R ouge H ousing D evelopm ent Corporation U nrestricted Elim inations 2000 Com bined Totals 1999 Com bined Totals $ $ $ 446,299 44,679 $ 328, ~ , , , ,881 L 68~ 231,5;96 159,881 - _. 84, , ,384 55, ,003,(161 8,578,518 11, ,671 1,673,754 2,163,322 2,745, ,403 8,268 98,236 _ ~ '_7_9 434,479 1,804,409 2,180,137 2,328, , ~28 138, ,673 7,779, ,200 ~ '22 7,400, , ,123 28,451 2 _~ _ 971, , , ,591. _!.~Z 21~ _8.,2fi~ ,425,843 13,349 (11,673) 47, ,386 7,591 2,386 _. 16,739 11,392 (37,659) 6,631 _ 246 2, (19,636) 13,595.13~01g _ (9,287) L9.05_2 73,945 _1.~ ,039 1,068,244 $ 151,613 $ (7,230) $ 1,275,228 $ 1,201,283

8 V O L U N TEER S O F A M ERIC A,G R E A TER BA T O N R O U G E,IN C., H U M A N SER V IC ES O F G R EA TER BA TO N R O U G E,IN C.A N D BA T O N R O U G E H O U SIN G D EV ELO PM EN T C O R PO R A T IO N CO M BIN IN G STA TEM EN T OF FU N CTION A L EX PEN SES FO R TH E Y EA R END ED JU N E 30,2000 W ITH CO M PA R A TIV E TO TA LS FO R 1999 Voltm t~'-rsofamwi=~.createrbatonr~ : Inc Homeless gervice~ Ctfildren And Youth Services M ~ t~ B~ )th D~volopm ~ 1~1 Employm ent Health Ctre DisabiliW Com~fions AndTrainin~ S~dc~ Housing TOtBI Salaries }:mployeebenefits perjsion I'~>~olIq~xcs Leg~ Fee~ A ec,ounting Fees OtheIProf~ sionalf~es S,appiies& ExpenBe~ Postage O~ upancy Expenses Inl~,cst lnsur*mce F~ ipm em Recital& M am t~nauce Priming AndPublications TravelAnd T~ sportalion Conference~And M e~tings SpecificA.~istanoeTo Individuals O~c~ D epreciation& Am ortization $ 212,127 $ 936, ,91] 7,851 23,864 13,308 68, ,264 04,573 a ,716 23,480 12,486 2,341 93,707 14, , $ 1,663,971 $ 246,316 $ 4,809 $ 26,978 $ $ 4,448,64I 110,805 14, ,054 4, ,63I ,820 18, ,024 1, , ] t go] I? 419 ~4, "l-oralfunctionalexpe'nses $ 513,671 $ 1,673,7M $ 2,}63,322 $ 2,745,31] $ 386,403 $ g,268 $ 98,236 $ 40,343 $ 7,629,308 Adm hlistratlve Fee Paid To Nalonal()rganiz.afi on TotalExpenses The accom panying notesare an integralpartof thisstatem ent. 5

9 H~m~ $er~ tg~fg-i~ l~ Btt~ R~u2e In~. M ~ ~ ent Alkd~cne~~ FundRai~,nL lot~l "lotslpro~rtrn An8 Suppomn~'Serciel~ pro,~asm Servlc~ TomIPragram AndSuppom lng Serv~'e~Erf,ea~. Ho~ iag. 20DO Combined 19~9 Combined Tom] $ 62,582 3A23 2, ~'~36 1, ?# ,146 5,601 I,695 1,211 63,49S 18, , $ 7,377 $ ,850 1,3S0 7,457 2,866 4, , , , , , , ,340 21, ,758 73, ,437 63,247 39, ,886 5~,65~ 328,092 6~, ,028 ~01.59

10 V I)I~U N T E ER S O F A M ER IC A,G R E A T ER BA TO N R O U G E,IN C., IIU /~ia N SE R V IC E S O F G R EA TE R B A T O N R O U G E,IN C.A N D BA T O N R O U G E H O U SIN G D EV E LO PM EN T C O R PO RA T IO N ('ash Flow sfrom O perating A ctivities: Changc in N eta ssets Adjustm ents~o Reconcile Changein N etc ash U sed by O perating A ctivities: D epreciation CO M BIN IN G STA TEM EN T O F CA SH FLOW S FO R TH E Y EA R EN D ED JU N E 30,2000 W ITH CO M PA RA TIV E TO TA LS FO R 1999 NetUnrealized (Gain)Losson Long-Term Investm ent Provision forbad D ebts (Gain)Losson Disposition offixed Assets C hangesin C urrenta ssetsand Liabilities: (Increase)Dccrease in AccountsReceivable (Increase)Decreasein PledgesReceivable (Increase)Decreasein OtherAssets (Increase)Decrease in Land and Buildings H eld tot R esale (Increase)Decrease in Prepaid Expense lncrease(decrease)in AccountsPayable Increase (Decrease)in OtherLiabilities Increase(Decrease)in Agency FundsPayable N clc ash Provided by O perating A ctivities V olunteerso f A m erica,g reater Baton Rouge,Inc. H um an Services O f G reater B aton Rouge,Inc. $ 69,637 $ 13,595 99,435 (16,739) 3,403 (223,286) (5,838) (417) (1,574) (21,470) 95,834 1,12(~ 36,593 14,059 2,762 (23,685) (1,441) 41,883 C ash Flow s From Investing A ctivities Purchases of Fixed A ssets Proceedsfrom Sale of Fixed A ssets Purchases of Investm ent N et('ash U sed in Investing A ctivities C ash Flow s fronlfinancing A ctivities: Proceeds from Issuance of Long-Term D ebt Repaym entof N otespayable N etd raw s on Line of Credit increase (Decrease)in ExcessOutstanding ChecksOver B ank B alance NetCash Provided by (Used in)financing Activities NetIncrease (Decrease)m Cash and Cash Equivalents Cash and C ash Equivaleuts -B eginning of Y ear (86,235) (4,862) (91,097) 98,445 (170,252) 184,747 (23,990) (2,036) 75,387 (98,724) (98,724) 60,000 (25,960) 34,040 (22,801) _ 43,009 IS'ash and C ash Equivalents-End of Y ear Supplem entald isclosure of Cash Flow Inform ation Cash Paym entsforinterest $ 73,351 $ 20,208 $ 56,197 $ 18,524 The accom panying:notesare an integralpartof thisstatem ent. 6

11 B aton R ouge H ousing D evelom nentc orooration Elim inations 2000 Com bined Totals 1999 Com bined Totals $ (9,287) $ 73,945 $ 133, ,028 24,582 (16,739) 3,403 (6,631 13, (31,11o) (240,337) (5,838) 2,345 (187,167) (5,416) (4,800) 39,119 39,119 43,815 (7,925) (1,574) (21,970) 94,393 1,126 (6) 32,757 (;, _,~_65. 21,907 63, ,361 (184,959). (4,862) (189,821) (142,870) 5,000 ~ _4 = 2fi_ 58.) (142,128) 11,939 (40,746) (28,807) (6,9(10) ,384 (236,958) 184,747 _ (23,990) 94,183 (31,737) _ 125, ,010 (251,822) (237,408). 112~218 (211,002) (159,769). 285J07 4:2 $ 93,601 $ 125,338 $ 74,721 $ 80,425

12 V O L U N T E E R S O F A M ER IC A,G R E A T E R B A T O N R O U G E,IN C., ItU M AN SER V IC E S O F G R EA TER BA T O N R O U G E,IN C.A N D B A T O N R O U G E H O U SIN G D EV EL O PM EN T C O R PO R A T IO N N O TES TO FIN A N CIA L STA TEM EN TS JU N E 30,2000 N ote 1 -Sum m ary of SignificantA ccounting Policies- O rganization VolunteersofAmerica,GreaterBaton Rouge,Inc.('theOrganization')isanot-for-profitChristian hum an serviccs agency,recognized asa church,incorporated in the State of Louisiana w hich provides socialservicesw ithin the G reater B aton Rouge and Southw estlouisiana areas undera charterfrom V oluntecrs of A m erica,inc.,a nationalreligiousnot-for-profitcorp oration, ltum maservicesof G reater Baton Rouge,inc.('the Organization')is anot-for-profitorganization incorporated in thestateof l,ouisiana w hich operatesasa property holding corp oration for V olunteersof A m erica,g reaterbaton Rouge, Inc. Efective July 1, 1997 the operations of the Baton Rouge H ousing D evelopm ent C orporation w ere transferred over to V olunteers of A m erica,g reaterb aton R ouge,inc.baton Rouge Housing Developm entcorp oration ('the Organization')isa not-for-profitorganization incorporated in the State of Louisiana which operatesasa property holding corporation of low incom e single fam ily dw ellingsheld forresale to qualified individuals. Princinlesof Conlbination The financialslatem entsinclude the accountsof V olunteersof A m erica,g reaterb aton R ouge,inc.and the related organizations,ttum an Services of G reaterb aton R ouge,inc.and B aton Rouge H ousing D evelopm entcorporation and have been com bined in accordance w ith Statem entof Position 94-3, Reporting of Related Entitiesby Not-for-ProfitOrganizations. B asisof A ccountin~ The O rganizations prepare their financialstatem entson the accrualbasisof accounting.a ccordingly revenuesare recognized w hen earned mad expensesare recognized w hen incurred. Basisof Presentation Financialstatem entpresentation follow sthe recom m endation of the FinancialA ccounting Standards Board on its Statem entof FinancialAccounting Standards (SFAS)No.117,FinancialStatements of Notzfor-Profit Organizations. Under SFAS No.117,the Organizalionsare rcquircd to report inform ation regarding theirfinancialposition and activitiesaccording to three classesof netassets; unrestricted net assets,tem porarily restricted net assels,and perm anently restricted net assets,as applicable. C ertain balancesforthe prioryear have been reclassified to conform to the currentyear'sfinancial statem entpresentation.

13 Property and Eouinm ent Land,buildings and equipm ent purchased by the Organizationsare recorded at cost. The Organizationsfollow the practice of capitalizing allexpendituresforland, buildings and equipm entin excessof $500;the fairvalue of donated fixed assetsissim ilarly capitalized. D epreciation isprovided on the straight-line m ethod based upon the estim ated usefullivesof the assets. The O rganizationsexpense purchasesof property boughtw ith fundsfrom costreim bursem entgrmlts fi'om variousstate and Federalagencies.Specialprovisionscontained in the State contractsspecify that ow nership of allproperty purchased shallrevertback to the grantoraftera specified tcnn orunder certain conditions pursuantto the contractualagreem ent. Land and Buildings H eld for Lm~d and Buildingsof Baton Rouge H ousing Developm entcorporation are held forresale. These assets arc valued atcostwhich approxim ates m arket. Cash E ~ J~!g.s_' The O rganizationsconsiderallhighly liquid investm entswith a m aturity of three m onthsorlessw hen purchased to be cash equivalents,unlessheld forreinvestm ent aspartof the investm ent portfolio, pledged to secure loan agr eem entsorotherw ise encum bered. Investm ents Investm entsin alldebtand equity securitiesw ith readily determinable fairvalue are reported attheir fairvalue.a llotherinvestm entsare reported at historicalcost, if purchased,or,if contributed,atfair value atthe date of contribution. A llcontributions are considered available forunrestricted use unless specifically restricted by the donor.a m ounts received thatare designated for future periods orrestricted by the donorforspecific purposes are reported as tem porarily restricted orpennanently restricted support thatincreasesthose netassetclasses,depending on the nature of the restrictions. W hen a restriction expires(thatis,when a stipulated tim e restriction endsorpurpose of restriction isaccomplished),temporarily restricted net assetsare reclassified to unrestricted netassets and reported in the Statem entof A ctivities asnetassets released from restrictions. Prom isesto G ive U nconditionalprom isesto give are recognized asrevenuesor gains in the period received as assets, decreases of liabilities,or expenses depending on the form of the benefits received. Conditional prom isesto give are recognized when the conditionson w hich they depend are substam ially m et.

14 C ontributed Services The O rganizationsrecognize contribution revenue forcertain servicesreceived atthe fairvalue of those serv icesprovided those services create orenhance nonfinancialassets orrequire specialized skills w hich are provided by individualspossessing those skills and w ould typically need to be purchased if notprovided by donation. D uring the yearended June 30,2000,the value of contributed services m eeting the requirem entsforrecognition in the financialstatem entsw asnotm aterialand hasnotbeen recorded. A llocation of F.xnenses The costsof providing the variousprogram servicesand supporting activitieshave been sum m arized on a functionalhasisin the Statem entof A ctivities. A ccordingly,certain costshave been allocated am ong the various functions. Sum m ary FinancialInform ation for 1999 The financialstatem entsinclude certain prioryearsum m arized com parative inlbrm ation in totalbut notby netassetclass. Such inform ation doesnotinclude sufficientdetailto constitute a presentation in conform ity w ith generally accepted accounting principles.a cco rdingly,such inform ation should be read in conjunction with the organizations'financialstatementsforthe yearended June 30,1999,from w hich the sum m arized inform ation w asderived. Estim ates 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 thataffectcertain reported am ounts and disclosures.a ccordingly,actualresultscould differ from those estim ates. Federallncom e Taxes V olunteersof A m erica,g reaterbaton Rouge,Inc.,H um an Servicesof GreaterB aton Rouge,lnc.,and B aton Rouge H ousing D evelopm entcorporation are exem ptfrom federalinco m e taxes assubordinate unitsof V ohm tecrsof A m erica,inc.v olunteersof A m erica,inc.isexem ptfrom federalincom e taxes undersection 501(a)of the Intern alrevenue Code asa religiousorganization described in Section 501(c)(3).~Ihcrewereno unrelated businessactivitiesforthe yearended June30,2000.Accordingly, no tax expense w asincurred during the yearended June 30,2000. N ote 2 -R elated Parties- V olunteersof A m erica,greaterbaton Rouge,Inc.isafi liated w ith V olunteersof Am erica,inc.which providesadm inistrative serv icesto the O rganization fora fee. A dm inistrative fcesforthe fiscalyear ended June 30,2000 totaled $204,111. The Organization ow esv olunteersof A m erica,inc.feesof $19,102 atjune 30,2000,which is included in accounts payable as reflected il these financial statem ents. H um an Serv ices of G reater B aton R ouge, Inc.has recorded land,buildings, and leasehold im - provem entsof the A m erica Street,BallsStreet,H arry D rive,brow nlee Street,Roselaw n,m idcity and R ivero akspropertiesin its financialstatem ents.a tjune 30,2000,H um an Serv icesof G reaterbaton Rouge,Inc.ow ed V olunteersof A m erica,greaterbaton Rouge,lnc.$64,836.Thisam ounthasbeen elim inated in these com bining financialstatem ents. 9

15 Baton Rouge Itousing D evelopm entcorporation actsasa property holding corporation o flow incom e single fam ily dw ellings held for resale.a t June 30,2000,B aton R ouge H ousing D evelopm ent Corporation ow esv olunteersof Am erica,g reaterbaton Rouge,Inc. $12,307.Thisam ounthasbeen elim inated in these com bining financialstatem ents. Furtherm ore:,v olunteersof Am erica,greaterbaton Rouge,Inc.actsasa m anagem entagentforfive U.S.Departmentof Housing and Urban Development(HUD)housing complexes-baton RougeVOA Living Centers,Inc.,Baton Rouge ResidentialCenter,Inc.,Lake CharlesI.iving Center,Inc.,W elsh Elderly ljousing,inc.and D orcasm anor,inc.a tjune 30,2000,these organizationsow ed V olunteers of A m erica,g rcaterbaton Rouge,Inc.$33,341,$11,372,$10,$15,271and $46,respectively.These am ounts are included in accountsreceivable asreflected in these financialstatem ents. N ote 3 -N otespayable - N otes Payable of V olunteers of A m erica,g reaterb aton R ouge,inc.are detailed as follow s D ue W ithin O ne Y ear D ue A fter O ne Y ear N ote dated M ay 12,1986 w ith an originalbalance of $145,000 payable in m onthly instalhnents of $1,448 during the firsttw elve m onth period. Thisincludesinterestata rate of 10%%. Interest fluctuatesannually based on the w eekly average yield on U.S. Treasury Securities. The currentrate is8.12%,the m axim um aggregate am ountof increase or decrease in the interestrate payable during the term of the loan shallnotbe greaterthan 5~% ;also,the increase or decrease in any given yearshallnotbe greaterthan 2~%.Thisnote m aturesjune 1,2006 and iscollateralized by property at827 A m erica St.held by Hum an Servicesof GreaterBaton Rouge,Inc. $ 9,434 $ 62,788 N ote dated Septem ber1,1992 w ith an original principal balance of $122,500 payable in 180 m onthly installm entsof $1,242 which includes interest ata rate of 9%. The note iscollateralized by land and building on D rusilla Lane. 8,236 69,653 N ote dated N ovem ber26,1990 w ith an original principal balance of $80,000 payable on dem and,or if no dem and ism ade,in 60 m onthly instalhnents of $933 w hich includesinterestat a rate of 11.5% and the balance due on the lastinstallm ent date. This note w as refinanced on A ugust21,1997 atan interestrate of 10%.The note is collateralized by land and building on W estm oreland Street. 7,692 27,354 N ote dated N ovem ber 11,1990 w ith an original principal balance of $34,900 payable on dem and,or if no dem and is m ade,in 60 m onthly installm ents of $408 which includesinterestata rate of 11.5% and the balance due on flae lastinstallm entdate. This note w as refinanced on A ugust21,1997 at an interestrate of 10%.The note is collateralized by land and building on Caddo Street. 3,625 (CONTINUED) 10

16 D ue W ithin O ne Y ear D ue A fter O ne Y ear N ote dated D ecem ber 20,1996 w ith an original principal balance of $200,000 payable in 120 m onthly installm ents of $2,643 w hich includesinterestata rate of 10%.The note iscollateralized by land and building on W ooddale Boulevard. 17, ,273 N ote dated A pril 8,I997 w ith an originalprincipal balance of $21,463 payable in 60 m onthly instalm ents of $446 which includes interestala rate of 8.9%.The note iscollateralized by a 1997 ChevroletV an. 4,707 4,269 N ote dated A pril 8,1997 w ith an original principal balance of $20,113 payable in 60 m onthly installm entsof $418 w hich includes interestata rate of 8.9%.The note iscollateralized by a 1997 ChevroletV an. 4,4(17 4,000 N ote datcd July 23,1997 w ith an originalprincipalbalance of $23,694 payable in 60 m onthly installm entsof $484 w hich includes interestat a rate of 7.75%. The note iscollateralized by a 1997 ChevroletV an. 5,108 6,447 N ote dated A ugust9,1998 w ith an originalprincipalbalance of $25,986 payable in 60 m onthly installm entsof $541which includes interestat a rate of 8.95%.The note iscollateralized by a 1999 G M C V an. 5,130 12,27 N ote dated N ovem ber4,1998 w ith an originalprincipalbalance of $21,217 payable in 48 m onthly installm entsof $519 which includesinterestata rate of 8.0%.The note is collateralized by a 1999 Ford van. 5,277 8,308 N ote dated O ctober26,1998 w ith an originalprincipalbalance of $23,392 payable in 48 m onthly instalhnentsof $570 which includes interestata rate of 8.0%.The note is collateralized by a 1999 D odge v an 5~ N81_0 $ 76, $ 339,017 (CONTINUED) 11

17 N otes Payable oftlum an Servicesof GreaterBaton R ouge,inc. are detailed asfollow s: D ue W ithin O ne Y ear D ue A fter.o ne Y ear N ote dated M ay 26,1992 w ith the City of Baton Rouge-Parish of East Baton Rouge w ith an originalprincipal balance of $96,000 and a 0% interestrate. Thisisa deferred paym entloan forw hich no paym ents are due fortile firstten years of the loan. D uring the second 10 year period,1/10th of the loan w illbe perm anently forgiven each yearthat the building continuesto be used fortransitional housing or other related purposes.the note iscollateralized by land and building on Brow nlee Street. $ $ N ote dated M ay 23,1994 w ith the City of Baton Rouge-Parish of East Baton Rouge with an originalprincipalbalance of $88,000 and a 0% interestrate. l.oan term is 240 m onthsbeginning w ith the firstpaym ent due on orby A pril1,1995. Sem i-annualpaym ents are due on O ctober1,and A pril1,thereafter.the note iscollateralized by land and building on BaitsStreet. 4, ,200 N ote dated D ecem ber29,1994 w ith the City of Baton R ouge-parish of EastBaton Rouge w ith an originalprincipalbalance of $198,646 and a 0% interestrate. Loan term is240 m onthsbeginning w ith the firstpaym ent due on or by Septem ber 1,1996.The note iseollateralized by land and building on H ary D rive. 9, ,714 N ote dated D ecem ber3,1997 w ith H ibernia N ationalbank w ith an originalprincipalbalance of $192,000 and a 8.75% interestrate. Loan term is 120 m onths beginning w ith the firstpaym entdue on or by January 3,1998. The note iscollateralized by land and building on R iverroad N ote dated D ecem ber3,1997 w ith a private investorw ith an original principalbalance o1'$48,000 and an interest rate of 9. 5%. Loan term is 120 m onthsbeginning w ith the firstpaym entdue on orby January 3,1998. Thisnote w illrequire balloon paym entafter5 years. The note is collateralized by land and building on RiverRoad. 3, ,043 N ote dated July 19,1999 w ith the City of Baton Rouge -Parish of EastBaton Rouge w ith an originalprincipalbalance of $60,000 and a 0% interestrate. Loan term is240 m onthsbeginning w ith the firstpaym ent due on or by D ecem ber 1,1999. The note is collaterized by land and building on M ain Street. _ 2,~ ,200 $ 36,396 $ 576,216 (CONTINUED) 12

18 NotesPayable of l~aton Rouge Housing D evelopm entcoq~oration are detained astbllows: D ue W ithin O ne Y ear D ue A fter O ne Y ear Loan agreementoriginally dated June 28,1994 (and amended April27, 1!)95,September25,1997 and September29,1998) w ith the C ity of B aton Rouge-Parish of East B aton Rouge w ith a m axim um loan an lountof $300,000 and a 0% interestrate.the outstanding balance isdue upon sale of the various properties. In the event,sale proceedsare lessthan the outstanding loan balance then only salesproceeds are due w ith rem aining debtforgiven. In the event properties are converted to rentalhousing use orrem ains otherw ise unsold after June 30,2001, note will be converted to a permanent,term m ortgage w ith m onthly principal only paym ents fora term of up to 20 years.the note iscullatcralized by various land and buildingson N orth Street. $ 99,141 $ N ote dated M arch,1994 w ith EastBaton Rouge Housing Authority w ith originalbalance of $25,000 and a 0% interest rate.the outstanding balance isdue upon sale of the variousproperties. $ 11)4,141 $ N otc obligation m aturitiesin yearsended June 30,are asfollow s Therea~er V olunteers O f A m erica,g reater Baton Rougej_nc. $ 78,893 63,963 55,978 48,624 _ 9 _ 15 _A~S9 $ 339,017 H um an Services O f G reater B aton Rouge,In ~ $ 38,219 40,211 42,387 44, ~ fi633 $ 576,216 Interestexpense forthe yearended June 30,2000 am ounted to $55,333 forv olunteersof Am erica, GreaterBaton Rouge,In c.,$18,488 forttum an Servicesof GreaterBaton Rouge,Inc.,and $0 forbaton R ouge H ousing I)evelopm entc orporation. N ote 4 -L ine of C redit- V olunteersof A m erica,g reaterbaton Rouge,Inc.hasa revolving line of creditw ith H ibern ia N ational Bank w ith a stated m axim mn of $600,000 which expireson M arch 30,2001.The line of creditbears avariable intercslrate based on the W allstreetjournalprim e Rate plus1% (currentrate 10% )and is secured by A ccountsreceivable. A sof June 30,2000 the line of credithad an outstanding balance of $224,600. (CONTIN UED) 13

19 N ote 5 -M inim um Lease C om m itm ents- The follow ing isa schedule by yearsof future m inim um rentalpaym entsrequired underoperating leases thathave initialorrem aining noncancelable lease term sin excess of one year asof June 30,2000: Y ear Ending June V olunteerso f A m erica G reaterb aton R ou~e.lnc $ 64,790 ~4,200 $ 78,990 Totalrentalexpenses for the yearended June 30,2000 for alloperating leases w as $305,748 for V olunteersof A m ei-ica,greaterbaton Rouge,Inc.,$0 forh um an Servicesof G reaterbaton Rouge, Inc.,and $0 forbaton Rouge H ousing D evelopm entcorporation. N ote 6 -R estrictionson N eta ssets- Tem porarily restricted netassetsare available tbr the tbllow ing purposes CapitalO utlay Program Services Pennanently restricted netassetsconsistof the follow ing Fam ily Fund Endow m ent $ 5,353. _ 1,716 $ 7,069 $ N ote 7 -N eta ssetsr eleased from R estrictions- N etassetsreleased from donorrestrictionsforincurring expensessatisfying the restricted purpose are asfollow s: V olunteerso f A m erica,g reater Baton Rouge,Inc. Pennington Foundation LocalC hurches M iscellaneous-o ther $ 14,826 48, $ 64,033 N ote 8 -Investm ents- In accordance with SFAS No.124 'Accounting for Certain Investments held by Not-For-Profit O rganizationv',investm enlsare stated atm arket value. A t June 30,2000,investm ents have a m ar ket value of$177,764 and a cum ulative unrealized gain of $53,464 since adoption ofsfa S N o.124.the unrealized gain of $16,739 and interestincom e of $4,862 earned on thisinvestm (mtin the currentyear are reflected in the Stalem entof A ctivities. There w ere no investm entsheld by Hum an Servicesof G reater B aton R ouge,inc.and B aton R ouge H ousing D evelopm entc orp oration asof June 30,2000.

20 N ote 9 -A ccrued A nnuall eave - V olunteersof Am erica,greaterbaton Rouge,Inc.has recorded an estim atextliability foraccrued leave of an am ountbased oilthe totalhours of leave accum ulated at June 30,2000,tim es the em ployees' hourly rate aljune 30,2000.Em ployeesaccru e hoursbased upon theirlength of service.n o m ore than one hundred twenty hoursof leave can be carried overfrom one yearto another.a ccru ed leave in the am ountof $132,370 isincluded in the otherliabilitiesaccounton the Statem entof FinancialPosition. N ote 10 -Pension Plan -M utualof A m erica for M inisters- V olunteersof A m erica,g reaterbaton R ouge,inc.participatesin a noncontributory defined benefit pension and retirem entplan.the plan isadm inistered through a com m ercialinsurance com pany and coversallcom m issioned m inisters. Pension plan expense w as$16,740 forthe yearended June 30, B ecause the plan isa m ulti-em ployerplan,the accum ulated benefitsand netassetsavailable forbenefits asthey relate solely to V olunteers of A m erica,g reaterb aton R ouge,in c.are notreadily available. N ote 11 -T hriftplan - VolunteersofAmerica,GreaterBaton Rouge,lnc.established asection 403(b)ThriftPlan effective January 1, The plan covers allem ployees w ith a m inim um of one year of service. The O rganization w illcontribute 3.25% of allpm'ticipants'com pensation and w illm atch an am ountequal to 50% of the basic em ployee contributionsm ade by each participantlim ited to 1% of theirw ages. Em ployeesw illbe 100% vested in the em ployercontribution upon com pletion of five yearsof service. The expense forthe yearended June 30,2000 was$92,867. N ote 12 -C om m itm ents and C ontingencies- V olunteerso fa m erica,g reaterbaton Rouge,Inc.hasan em ployee m edicalbenefitplan to self-insure claim s up to a m axim um aggregate deductible com puted based on actual par ticipation. C laim s exceeding this aggregate deductible am ount are covered by a stop-loss reinsurance policy. The Organization and its covered em ployees contribute to the Plan to pay the claim s and stop-loss reinsurance prem ium s. N ote 13 -C oncentration of C reditr isk - Included in receivablesare am ountsdue forprogram servicesprovided to variousagenciesof the State of Louisiana an d grantfundsdue from federaland state agencies.a llow ancesar e provided foram ounts estim ated by m anagem entasuncollectible. The O rganizationsm aintain cash accountsw ith com m ercialbanksw hich are insured by the Federal D epositin surance Corporation up to $100,000. Periodically,cash m ay exceed the federally insured am ount.

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

22 V O LU N TEER S O F A M ER IC A, G R EA T ER BA TO N R O U G E,IN C STATEM EN T O F A CTIV ITIES FO R SPECIA L PR O G R AM S* FO R TH E Y EA R EN D ED JU N E 30,2000 R evenuesfl'om O perations: Public Support G overnm entg rants and Fees U nited W ay A llocation O ther TotalR evenues fl'om O pcrations O perating E xpenses: Salaries Em ployee Benefits PayrollTaxes ProfessionalFees Suppliesand O fice Expenses A dm inistrative Expenses O ccupancy Insurance Interest Equipm entr entaland M aintenance Printing and Publications Travel ClientCash Subsidy D epreciation TotalO peraling Expenses _ 88,708 60,682 37, (;43 803, ,866 49,193 30,123 28,566 69,418 83,797 61,829 16,924 1,203 3, ,422 66,229 jlj ,586 Change in N eta ssets $ (148,954) * Includesallprogram s of V olunteers of Aruerica,G reater Baton Rouge,Inc.w hich received CapitalA rea U nited W ay Funding.

23 V O L U N T E E R S O F A M E R IC A, G R EATER BATO N R O U G E,IN C. SCH ED U LE O F EX PEN D ITU R ES O F FED ERA L A W A RD S FO R TH E Y EA R EN D ED JU N E 30,2000 FederalG rantor/ Pass-Through G rantor/ l'roeram Title U.S.D epartm entof H ousing and U rban D evelopm ent D irectprogram SpecialN eedsa ssistance Program RuralSupportive H ousing Program Passed Through City Parish Federal C FD A N um ber N /A N /A Federal Expenses $ 30,849 85,572 Em ergency ShelterG rantsprogram ,395 Passed Throagh Em ergency Food and ShelterN ational Board Progranl Em ergency Food and Shelter Program Passed Through Louisiana D epartm entof H ealth and Itospitals,O fice of M entalh ealth TotalU.S.I)epartm entof H ousing and Urban D evelopm ent U.S.D enartm entof Justice Passed Through Louisiana Com m ission on Law Enforcem ent and A dm inistration of Crim inaljustice Em ergency FN aluation and Treatm ent Program Subgrant 97-C 5-V C TotalU.S.D epartm entof Justice N /A N /A , ,567 7,876 22,890 30,766 (CONTINUED) 17

24 FederalG rantor/ Pass-Through G rantor/ l'ro~ram Title U.S.D epartm entof H ealth and H um an Services Passed Through Louisiana D epartm entof SocialServices,O ffice of Com m unity Services Federal C FD A N um ber Federal Expenses Fam ily Based ServicesReunification Fam ily Based Services,Fam ily Resource Center Passed Through Louisiana D epartm entof H ealth and Itospitals,O ffice of M entalh ealth H IV Em ergency Relief ,696 26,894 Passed Through C enterford isease ControlH IV Prevention A ctivities ,985 TotaltI.S.D epam ncntof H ealth and H m nan Services TotalFederalA ssistance $ 838,072

25 V O L U N T EE R S O F A M ER IC A,G R EA TER BA T O N R O U G E,IN C N A TION A L A DM IN ISTRATIV E FEES C A LC U LA TIO N FO R M FO R TH E Y EA R EN D ED JUN E 30, Totalaccruallevenue from audited financialslatcm ent a.plus:pledgesreceivable,june 30,1999 $ 9,029,777 5,416 b.less:pledgesreceivable,june 30,2000 X11,254) 9,023, Less: A llow able Exclusions Explanation of each exclusion A. D uplicated revenues B. ln-kind rcvenues C. Capitalcontributions/grants D. Encum bered Financing E.Acquired 501(c)(3) F. CustodialorThird Party Financing G. D onor R estricted C ontributions H. hw estm cntearnings/n etcapital G ains 1. Phase outof Prior Exclusions $ 271,257 17, ,200 39,248 26, TotalA llow ablc Exclusions 4.Adjusted Revemle ~ 476,421) $ 8,547,518 C alculate A ffiliate Fees: 5.EnterLine 4 x 2.4% up to a M axim um of $25,490,796. If Line 4 <$25,490,796 EnterAm ountcalculated on Line 7, 6.If Line 4 < $25,490,796,go to Line 7,else Calculate Fee Based on 1998 Sliding Scale. M ultiply thisam ountby 1.10 and Enterin Line 6.EnterLesserof Line 5 orline 6 in Line 7. 7.A ffiliate Fees 8. A m ountdue to nationaloffice asof June Totalcash paym entsto nationalofi ce forfiscalyear June A m ountdue to nationaloffice as of June $ 205, ,140 19,250 (,_205,288) $ 19,102

26 IN D EPEN D EN T A U D ITO R 'S REPO RT O N CO M PLIA N CE A N D O N TH E IN TER N A l_,c O N TRO L O V ER FIN A N C IA L R EPO RTIN G B A SED O N A N A U D IT O F FIN A N C IA L STA TEM EN TS PER FO RM ED 1N A CCO RD A N CE W ITH G O V ERN M EN T A U D ITIN G STA N D A R D S

27 Hm is Bour#eois,l I f I(~m dyj Bonnecaze,(~I'A * J,~scph D.R iclm ld,jl.,('pa * I{onttie I~.Sl[~HIp('l,CPA * I~,rlLantlE (;cln~.ci'a ' Stcl~h~n M,lluggln~,('I'A ' Ronald I,(;agnel,CI'A * DouglasJ.Nelson,('PA * ('ti(sfc 1).Vialol.C]'A * are a I;.M onloc,(:i'a li',,j~ i,tjotac(,m,jti,lg(e,tl~,~,ti, C ertified l'ublic A ccountants 2322 'liem onld rive,suile 200 Baton P,ougc,l,A 7(1809 Phone:(225) Fax:(225) A ugust31,2000 MembersAmeticattInstituteof ('ehifted I'ul>licAc~o tants ]S,]~.~tllgC A V~IIIIC,Sui{I; 1(I )cnhanlsplings,i.a B oard of D irectors V olunteersof A m erica,g reaterb aton Rouge, Inc B aton Rouge,Louisiana W e have audited the financialstatem ents of V olunteers of A m erica,g reaterbaton Rou~ge,Inc.asof and for the year ended June 30,2000,and have issued our reportthereon dated A ugust 31,2000. W e conducted ourauditin accordance with generally accepted auditing standardsand the standardsapplicable to financialaudits conlained in Governm entauditing Standards, issued by the Com ptrollerg eneral of the U nited Stales. Com pliance A spart of obtaining reasonable assurance aboutw hethervolunteersof Am erica,greaterbaton Rouge, lnc.'sfinancialstatem entsare fi'ec & m aterialm isstatem ent, w e perform ed testsof its com pliance w ith certain provisions of law s,regulations,contracts and grmlts,noncom pliance w ith w hich could have a direct and m aterialeffecton the determ ination of financialstatem entam ounts.h ow ever,providing an opinion oncompliancewiththoseprovisionswasnotan objectiveofourauditand,accordingly,wedo notexpress such an opinion. The resultsof our testsdisclosed no instances of noncom pliance thatare required to be rcported underg overnm enta uditing Standards. InternalControlO verfinancialrenortin In plan ning and percorm ing our audit,w e considered V olunteersof A m erica,g reaterbaton Rouge,Inc.'s intern alcontrolover financialreporting in orderto determ ine our auditing proceduresforthe purpose of expressing ouropinion on the financialstatem entsand notto provide assurance on the intern alcontrolover financialreporting.o urconsideration of the internalcontroloverfinancialreporting w ould notnecessarily disclose allm attersin the intern alcontroloverfinancialreporting 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 intern al control com ponentsdoes not reduce to a relatively low levelthe risk thatm isstatem entsin am ountsthatw ould be m aterialin relation to the financial statem ents being audited m ay occurand notbe detected w ithin a tim ely pcriod by em ployeesin the norlnalcourse of perform ing theirassigned functions. W e noted no m atters involving the internalcontroloverfinancialreporting and its operation thatw e considerto be m aterialw eaknesses.

28 This reportisintended forthe Board of Directors,m mlagem ent,the O fi ce of the Louisiana Legislative A uditorand an5'cognizantagency and should notbe used forany otherpurpose. R espectfully subm itted, 21

29 IN D EPEN D EN T A U D ITO R 'S R EPO RT O N CO M PLIAN CE W I'FItREQUIREM ENTS APPLICABLE TO EACH OF ITS M AJOR PRO G RA M S AN D IN TERN A L CON TROL OV ER CO M PLIAN CE IN A C CO R D A N CE W ITH O M B CIRCU LA R A -133

30 ~ 111y J.gojllcc~Zc,( ]~ ~ Joseph I).R ichald,jl.,c PA Ronnic I.Nlanipet,CI'A * ]Cll;~ld ]~(;Ulle,('I~A * Slcph(n M.Ihlggin~.('I'A * M onica I,ZllfllO.(:IA ' J~.onMd ],.(;agnel,ci'a ' l){,uglasj.nelson.('i'a " (:~lcmi,i).vialol,(']~a I l~ura I~ M om oe,cpa *A I',,f,.,~i.,.,lA((.,m,J~ ~,,i,.,a 'licm onld rive,suite 200 Balon P,ougc,I.A Phone:(225) Fax:225) A ugust31,2000 IS.Range AvcnllC,Suilc 10 )cnham Sptilgs,I,A 7(1726 Board of D irectors V olunteersof A m erica,g reaterbaton Rouge,Inc. Baton Rouge,Louisiana Com pliance W e have audited the com pliance of V olunteersof Am erica,g reaterbaton Rouge,Inc.w ith the typesof complian cerequirementsdescribed in theu.s.office of M anagementand Budget(OM B)CircularA-]33 Compliance Supplementthatare applicable to each of itsmajor federal programs for the yearended June 30,2000.Volunteersof Am erica,greaterbaton Rouge,Inc.'smajorfederalprogram sare identified in the summ ary of auditor'sresultssection of theaccompanying Schedule of Findingsand Questioned Costs. Com pliance w ith the requirem entsof law s,regulations,contractsand grantsapplicable to each of itsm ajorfederalprogram sarethe responsibility ofvolunteersof Am erica,greaterbaton Rouge,Inc.'s m anagem ent. O urresponsibility is to expressan opinion on V olunteers of A m erica,g reaterb aton Rouge, Inc.'s com pliance based on our audit. W e conducted ourauditof com pliance in accordance w ith generally accepted auditing standards;the standards applicable to financial audits contained in Governm entauditing Standards, issued by the Comptroller Generalofthe United States;and OM B Circular A-133,Audits of States,Local Governments,andNon-ProfitOrganizations.Thosestandardsand OM B CircularA-133requirethatwe plan and perform the auditto obtain reasonable assurance aboutw hethernoncom pliance w ith the typ esof compliance requirem entsreferred to above thatcould have a directand m aterialeffecton a majorfcderal program occurred.a n auditincludesexam ining,on a testbasis,evidence aboutv olunteersof A m erica, G reaterbaton R ouge,]nc.'scom pliance w ith those requirem entsand perform ing such otherprocedures asw e considered necessary in the circum stances. W e believe thatourauditprovidesa reasonable basis forouropinion.o urauditdoesnotprovide a legaldetem aination on Volunteersof Am erica,greaterbaton R ouge,inc.'scom pliance w ith those requirem ents. 22

31 In ouropinion,vohm teersof A m erica,greaterbaton Rouge,Inc.com plied,in allm aterialrespects,w ith the requirem entsreferred to abovethatare applicable to each of itsm ajorfederalprogran asforthe year ended June lntem alc ontrolo verc ooapliance The m anagem entof Volunteersof Am erica,greaterbaton Rouge,Inc.isresponsible forestablishing and m aintaining effective internalcontrolover com pliance w ith requirem ents of law s,regulations,contracts and grantsapplicable to federalprogram s. In planning and perform ing our audit,w e considered V olunteers of A m erica,g reaterbaton Rouge,Inc.'sintern alcontrolovercom pliance w ith requirem entsthatcould haveadirectandmaterialeffecton amajorfederalprogram in orderto determineourauditing procedures forthe purpose of expressing ouropinion on com pliance and to testand reporlon internalcontrol over com pliance in accordance w ith O M B C ircular A O urconsideration of the internalcontrolovercom pliance w ould notnecessarily disclose allm atters in the internal controlthatm ightbe m aterialw eaknesses. A m aterialw eaknessisa condition in w hich the design oroperation of one orm ore of the intern alcontrolcom ponentsdoesnotreduce to a relatively low levelthe risk thatnoncom pliance w ith applicable requirem ents of law s,regulations,contractsand grants thatwould bematerialin relation to amajorfederalprogrmn being audited may occur and notbedetected w ithin a tim ely period by em ployeesin the norm alcourse of performing their assigned functions. W e noted no m attersinvolving the intern alcontrolovercom pliance and itsoperation thatw e considerto be m aterialw eaknesses. Thisreportisintan dcd forthe Board of D irectors,m anagem ent,the O fi ce of the Louisiana Legislative A uditor and any cognizantagency,and should notbe used forany other purpose. Respectfully subm itted

32 V O LUN TEER S O F A M ER ICA,G REATER BA TO N R O 1.)GE,IN C SCH ED U LE O F FIN D IN G S AN D O U ESTIO N ED CO STS FO R TH E Y EA R EN D ED JUN E 30,2000 A s required by U.S. O fi ce of M anagem ent and Budget Circular A -133,A udits of States,Local G overnm ents,and N on-profito rganizations,the follow ing isa sum m ary of the results()fouraudit: Type of repro 1issued on financialstatem ents-unqualified. Typeofreportissued on complianceformajorprograms-unqualified The resultsof an ditproceduresdisclosed no m aterialnoncompliance in m ajorprogram s The resultsof auditproceduresdisclosed no questioned costs Ourauditdisclosed no findingswhich are required to be reported undersection 510(a) The following progrmnswere determined to be atyp eb m ajorprogram U.S.I)epartm entof H ealth and Hum an ServicesPassed Through Lonisiana D epartm entof SocialServices,O ffice of Com m unity Services CFD A N um ber Fam ily B ased Services,Fam ily R esource C enter U.S.I)epartm entof H ealth and H um an ServicesPassed Through Louisiana D epartm entof H ealth and Hospitals,O ffice of M entalh ealth PA C T The dollarthreshold used to distinguish betw een Type A and Type B program sw as$300,000 as specified undersection 520(b). V olunteersof A m erica,greaterbaton Rouge,In(:.qualified asa low risk auditee undersection