BOYS AND GIRLS CLUB OF WEST MONROE, INC WEST MONROE, LOUISIANA FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2006

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1 1_ AN 9:38 BOYS AND GIRLS CLUB OF WEST MONROE, INC WEST MONROE, LOUISIANA FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2006 : Jnde povisions of state law, this epot is a public document Acopy of the epot has been submitted to the entity and othe appopiate public officials. The epot is available fo public inspection at the Baton Rouge office of the Legislative Audito and, whee appopiate, at the office of the paish clek of cout. Release Date?I f/z> T

2 BOYS AND GIRLS CLUB OF WEST MONROE, INC. FINANCIAL STATEMENTS DECEMBER 31, 2006 IL CONTENTS PAGE COMPLIANCE REPORTS: Repot on Intenal Contol Ove Financial Repoting and on Compliance and Othe Mattes Based on An Audit of Financial Statements Pefomed In Accodance with Govenment Auditing S tandads 1-3 INDEPENDENT AUDITORS 7 REPORT 4-5 FINANCIAL STATEMENTS: Statement of Financial Position 6 Statement of Activities 7 Statement of Cash Flows 8 Statement of Functional Expenses 9 Notes to Financial Statements SUPPLEMENTARY FINANCIAL INFORMATION: Schedule I - Schedule of Expenditues of Fedeal Awads Schedule II - Schedule of Boad Membes Compensation 17 SCHEDULE OF FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION TAKEN ON PRIOR YEAR FINDINGS 20

3 ROWLAND H. PERRY, CPA, APC CHARLES L. JOHNSON, JR., CPA VIOLET M. ROUSSEL, CPA, APC PAM BATTAGLIA, CPA JAY CUTHBERT, CPA JULIAN B. JOHNSTON, CPA CPA "The CPA Neve Undeestimates The Value" Cetified Public Accountants 3007 Amand Steet Monoe, Louisiana Telephone (318) o (318) Facsimile (318) June 29, 2007 Accounting & Auditing - HUD Audits - Non-Poflt Oganizations - Govenmental Oganizations Business & Financial Planning Tax Pepaation & Planning - Individual & Patneship - Copoate & Fiduciay Bookkeeping & Payoll Sevices REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Boad of Diectos Boys and Gils Club of West Monoe, Inc. West Monoe, Louisiana We have audited the financial statements of Boys and Gils Club of West Monoe, Inc. (a nonpofit oganization) as of and fo the yea ended Decembe 31, 2006, and have issued ou epot theeon dated June 29, We conducted ou audit in accodance with accounting standads geneally accepted in the United States of Ameica applicable to financial audits contained in Govenment Auditing Standads, issued by the Comptolle Geneal of the United States. Intenal Contol Ove Financial Repoting In planning and pefoming ou audit, we consideed Boys and Gils Club of West Monoe, Inc.'s intenal contol ove financial epoting as a basis fo designing ou auditing pocedues fo the pupose of expessing ou opinion on the financial statements, but not fo the pupose of expessing an opinion on the effectiveness of Boys and Gils Club of West Monoe, Inc. 's intenal contol ove financial epoting. Accodingly, we do not expess an opinion on the effectiveness of the Oganization's intenal contol ove financial epoting. Ou consideation of intenal contol ove financial epoting was fo the limited pupose descibed in the peceding paagaph and would not necessaily identify all deficiencies in intenal contol ove financial epoting that might be significant deficiencies o mateial weaknesses. Howeve, as discussed below, we identified cetain deficiencies in intenal contol ove financial epoting that we conside to be significant deficiencies. MEMBER AMERICAN INSTITUTE OF and SOCIETY OF LOUISIANA

4 A contol deficiency exists when the design o opeation of a contol does not allow management o employees, in the nomal couse of pefoming thei assigned functions, to pevent o detect misstatements on a timely basis. A significant deficiency is a contol deficiency, o combination of contol deficiencies, that advesely affects the Oganization's ability to initiate, authoize, ecod, pocess, o epot financial data eliably in accodance with geneally accepted accounting pinciples, such that thee is moe than a emote likelihood that a misstatement of the Oganization's financial statements that is moe than inconsequential will not be pevented o detected by the Oganization's intenal contol. We conside the deficiencies descibed in the accompanying schedule of findings and questioned costs to be significant deficiencies in intenal contol ove financial epoting. This finding is identified in the schedule of findings and questioned costs as item A mateial weakness is a significant deficiency, o combination of significant deficiencies, that esults in moe than a emote likelihood that a mateial misstatement of the financial statements will not be pevented o detected by the Oganization's intenal contol. Ou consideation of the intenal contol ove financial epoting was fo the limited pupose descibed in the fist paagaph of this section and would not necessaily identify all deficiencies in the intenal contol that might be significant deficiencies and, accodingly, would not necessaily disclose all significant deficiencies that ae also consideed to be mateial weaknesses. Howeve, we believe that none of the significant deficiencies descibed above is a mateial weakness. Compliance and Othe Mattes As pat of obtaining easonable assuance about whethe Boys and Gils Club of West Monoe, Inc. 's financial statements ae fee of mateial misstatement, we pefomed tests of its compliance with cetain povisions of laws, egulations, contacts, and gant ageements, noncompliance with which could have a diect and mateial effect on the detemination of financial statement amounts. Howeve, poviding an opinion on compliance with those povisions was not an objective of ou audit, and accodingly, we do not expess such an opinion. The esults of ou tests disclosed no instances of non-compliance o othe mattes that ae equied to be epoted unde Govenment Audi ting- Standads.

5 This epot is intended fo the infomation of the audit committee, management, and Boad of Diectos/ and is not intended to be and should not be used by anyone othe than these specified paties. Howeve, unde Louisiana Revised Statute 24 : 513, this epot is distibuted by the Legislative Audito as a public document. i - 3 -

6 ROWLAND H. PERRY, CPA, ARC CHARLES L. JOHNSON, JR., CPA VIOLET M. ROUSSEL, CPA, APC PAM BATTAGLIA, CPA JAYCUTHBERT.CPA JULIAN B. JOHNSTON, CPA CPA, "The CPA Neve Undeestimates The Value" Cetified Public Accountants 3007 Amand Steet Monoe, Louisiana Telephone (318) o (318) Facsimile (318) June 29, 2007 Accounting & Auditing - HUD Audits - Non-Pofit Oganizations - Govenmental Oganizations Business & Financial Planning > Tax Pepaation & Planning - Individual & Patneship - Copoate & Fiduciay 1 Bookkeeping & Payoll Sevices INDEPENDENT AUDITORS' REPORT Boad of Diectos Boys and Gils Club of West Monoe, Inc. West Monoe, Louisiana We have audited the accompanying statement of financial position of Boys and Gils Club of West Monoe, Inc. (a non-pofit oganization) as of Decembe 31, 2006, and the elated statements of activities, functional expenses, and cash flows fo the yea then ended. These financial statements ae the esponsibility of the Oganization's management. Ou esponsibility is to expess an opinion on these financial statements based on ou audit. We conducted ou audit in accodance with auditing standads geneally accepted in the United States of Ameica and the standads applicable to financial audits contained in Govenment Auditing Standads, issued by the Comptolle Geneal of the United States. Those standads equie that we plan and pefom the audit to obtain easonable assuance about whethe the financial statements ae fee of mateial misstatement. An audit includes examining, on a test basis, evidence suppoting the amounts and disclosues in the financial statements. An audit also includes assessing the accounting pinciples used and significant estimates made by management, as well as evaluating the oveall financial statement pesentation. We believe that ou audit povides a easonable basis fo ou opinion. In ou opinion, the financial statements efeed to above pesent faily, in all mateial espects, the financial position of Boys and Gils Club of West Monoe, Inc. as of Decembe 31, 2006, and the changes in its net assets and its cash flows fo the yea then ended in confomity with accounting pinciples geneally accepted in the United States of Ameica MEMBER AMERICAN INSTITUTE OF and SOCIETY OF LOUISIANA

7 In accodance with Govenment Auditing Standads; we have also issued ou epot dated June 29, 2007 on ou consideation of Boys and Gils Club of West Monoe, Inc.'s intenal contol ove financial epoting and on ou tests of its compliance with cetain povisions of laws, egulations, contacts, and gant ageements and othe mattes. The pupose of that epot is to descibe the scope of ou testing of intenal contol ove financial epoting and compliance and the esults of that testing, and not to povide an opinion on the intenal contol ove financial epoting o on compliance. That epot is an integal pat of an audit pefomed in accodance with Govenment Auditing- Standads and should be consideed in assessing the esults of ou audit. Ou audit was pefomed fo the pupose of foming an opinion on the basic financial statements of Boys and Gils Club of West Monoe, Inc. taken as a whole. The accompanying financial infomation listed as supplementay financial infomation in the table of contents and the accompanying schedule of expenditues of fedeal awads is pesented fo puposes of additional analysis, and is not a equied pat of the financial statements. Such infomation has been subj ected to the auditing pocedues applied in the audit of the financial statements and, in ou opinion, is faily stated, in all mateial espects, in elation to the financial statements taken as a whole

8 BOYS AND GIRLS CLUB OF WEST MONROE, STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2006 INC ASSETS Unesticted Tempoaily Resticted Total CURRENT ASSETS Cash and Cash Equivalents Accounts Receivable - Gants Pepaid Insuance Unconditional Pomise to Give - United Way Sevice and Capital One Funding in Next Calenda Yea Unconditional Pomise to Give - Capital One Funding Afte Next Calenda Yea 1, ,419 13,872 86,640 50,000 1, ,419 13,872 86,640 50,000 TOTAL CURRENT ASSETS 44, , ,102 FIXED ASSETS Equipment and Leasehold Impovements, Net 105, ,529 NET FIXED ASSETS 105, ,529 OTHER ASSETS Othe Assets 3, 948 3, 948 TOTAL OTHER ASSETS 3, ,948 TOTAL ASSETS 153, LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable Accued Payoll Taxes Accued Insuance Pension Payable Line of Cedit 19,954 2,665 18,928 1,572 19,954 2,665 18,928 1,572 TOTAL CURRENT LIABILITIES 43, ,119 NET ASSETS TOTAL LIABILITIES AND NET ASSETS 110, , , , , The accompanying notes ae an integal pat of these financial statements, - 6 -

9 BOYS AND GIRLS CLUB OF WEST MONROE, INC STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2006 SUPPORT AND REVENUE Tempoaily Unesticted Resticted Total SUPPORT Gants Contibutions Othe United Way Contibutions Capital One Gant Net Assets Released fom Restiction 118,674 26,293 1, ,189 25,000 67,000 61,640 75,000 67,000) 118,674 26,293 1, , ,000 TOTAL SUPPORT 304,241 69, ,881 REVENUE Special Events - Net Membeship Dues Pogam Sevice Fees Concessions Legalities and Bequests Inteest Income 5,928 2,225 37,864 7, ,928 2,225 37,864 7, TOTAL REVENUE 53, ,762 TOTAL SUPPORT AND REVENUE 358,003 69, ,643 EXPENSES Pogam Sevices 333, ,168 Suppot Sevices Management and Geneal Fund-Raising 39,536 29,415 39,536 29,415 Total Suppot Sevices 68,951 68,951 Total Functional Expenses 402, ,119 TOTAL EXPENSES 402, ,119 Change in Net Assets ( 44,116) 69,640 25,524 NET ASSETS AT BEGINNING OF YEAR 154,936 67, ,936 NET ASSETS AT END OF YEAR 110, ,460 The accompanying notes ae an integal pat of these financial statements _ 7 _

10 BOYS AND GIRLS CLUB OF WEST MONROE, INC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2006 CASH FLOWS FROM OPERATING ACTIVITIES: Change in Net Assets Adjustments to Reconcile Change in Unesticted Net Assets To Net Cash Povided by Opeating Activities Depeciation (Incease) Decease in Accounts Receivable - Gants (Incease) Decease in United Way Funding Commitment (Incease) Decease in Capital One Funding Commitment (Incease) Decease in Pepaid Insuance Incease (Decease) in Accounts Payable Incease (Decease) in Accued Payoll Taxes Incease (Decease) in Accued Insuance Incease (Decease) in Pension Payable Net Cash Povided (Used) By Opeating Activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS - END OF PERIOD 25, , 129 (29,419) 5,360 (75,000) 18, , 908 ( 41) 14,536 1, Cash Paid fo Inteest Cash Paid fo Income Taxes 2, The accompanying notes ae an integal pat of these financial statements.

11 BOYS AND GIRLS CLUB OF WEST MONROE, INC. STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2006 Pogam Sevices Boys and Gils Club Suppot Sevices Management Fund- And Geneal Raising Total Salaies Employee Benefits Payoll Taxes Pofessional Fees Supplies Occupancy Rental/Maintenance Equipment Pinting and Publications Tavel/Convention Painting and Postage Telephone Insuance Inteest Dues and Fees Depeciation Miscellaneous 142,362 18,819 11,635 10,070 29,372 32, , 511 1,298 4,356 44,065 1,725 7,285 20, ,233 2, 066 1,369 1,185 3,456 3, , , , ,233 2, ,728 1, , , ,828 22,951 13,688 11,847 34,556 37, ,013 1,527 5,125 51,841 2,032 8,571 24, TOTAL FUNCTIONAL EXPENSES , ,119 The accompanying notes ae an integal pat of these financial statements - 9 -

12 BOYS AND GIRLS CLUB OF WEST MONROE, INC, NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2006 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Boys and Gils Club of West Monoe, Inc. (the Oganization) is a local non-pofit oganization that povides a pool, gym, baseball, flag football, and basketball to boys and gils in notheast Louisiana. The Oganization is suppoted though contibutions by the United Way and vaious othe gants. Basis of Accounting Financial statements ae pepaed on the accual basis of accounting in accodance with geneally accepted accounting pinciples. Pomises to Give Unde Statement of Financial Accounting Standads (SFAS) No. 116, contibutions ae ecognized when the dono makes a pomise to give to the Oganization that is, in substance, unconditional. Contibutions that ae esticted by the dono ae epoted as inceases in unesticted net assets if the estictions expie in the fiscal yea in which the contibutions ae ecognized. All othe dono-estieted contibutions ae epoted as inceases in tempoaily o pemanently esticted net assets depending on the natue of the estictions. When a estiction expies, tempoaily esticted net assets ae eclassified to unesticted net assets. Basis of Pesentation Financial statement pesentation follows the ecommendations of the Financial Accounting Standads Boad in its Statement of Financial Accounting Standads (SFAS) No. 117, Financial Statements of Not-fo-Pofit Oganizations. Unde SFAS No. 117, the Oganization is equied to epot infomation egading its financial position and activities accoding to thee classes of net assets: unesticted net assets, tempoaily esticted net assets, and pemanently esticted net assets i

13 BOYS AND GIRLS CLUB OF WEST MONROE, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2006 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued) Cash and Cash Equivalents Fo puposes of the Statement of Cash Flows, the Oganization consides all unesticted highly liquid investments with an oiginal matuity of thee months o less to be cash equivalents. Fai value appoximates caying amounts. Allocation of Functional Expenses The costs of poviding the vaious pogams and othe activities have been summaized on a functional basis in the statement of activities. Accodingly, cetain costs have been allocated among the pogams, fund-aising costs, and suppoting sevices benefited. Reseve fo Bad Debts Accounts eceivable have been eviewed by management and it has been detemined that thee is no equiement fo an allowance fo doubtful accounts as of Decembe 31, Income Tax Status The Oganization qualified as a tax-exempt oganization unde Section 501 (C)(3) of the Intenal Revenue Code and, theefoe, has no povision fo fedeal income taxes. Estimates The pepaation of financial statements in confomity with geneally accepted accounting pinciples equies management to make estimates and assumptions that affect cetain epoted amounts and disclosues. Accodingly, actual esults could diffe fom those estimates. Advetising Costs The Oganization expenses advetising costs as they ae incued. Advetising expenses fo the yea ended Decembe 31, 2006 wee immateial

14 BOYS AND GIRLS CLUB OF WEST MONROE, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2006 NOTE 2 - DONATED SERVICES: No amounts have been eflected in the financial statements fo donated sevices as no objective basis is available to measue the value of such sevices. NOTE 3 - PLANT ASSETS AND DEPRECIATION: Depeciation of plant assets is calculated on the staight line basis ove the estimated useful lives of the assets. The Oganization capitalizes all assets ove $1, 000 with useful life geate than one yea. The cost of such assets at Decembe 31, 2006 is as follows: Land Buildings Pool Compute Equipment Vehicles Equipment Subtotal Accumulated Depeciation Total Amount 25, , ,984 33, 586 9,298 67, ,370 (384, 841) 105,529 NOTE 4 - FUND-RAISING COSTS: Fund -aising costs, othe than special events and concession sales, ae detailed in the statement of functional expenses. The costs of special events and concessions ae as follows: Goss Sales Cost of Sales NET PROFIT (LOSS) Special Events 24,698 18, 770 5, 928 Concessions 7,328 7,

15 BOYS AND GIRLS CLUB OF WEST MONROE, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2006 NOTE 5 - PENSION PLAN: The Oganization maintains an employee etiement plan fo full-time, salaied employees. Employee contibutions ae equal to five pecent of compensation. The pension contibution fo the yea was $8,280. NOTE 6 - NET ASSETS: The Oganization epots infomation egading its financial position and activities accoding to these classes of net assets: Unesticted Net Assets - consists of assets, public suppot and pogam evenues which ae available and used fo opeations and pogams. Contibutions ae consideed available fo unesticted use unless specifically esticted by the dono. Tempoaily Resticted Net Assets - includes funds with dono-imposed estictions which pemit the donee oganization to expend the assets as specified and is satisfied eithe by the passage of time o by actions of the oganization. Resouces of this natue oiginate fom gifts, gants, bequests, contacts and investment income eaned on esticted funds. Pemanently Resticted Net Assets - includes esouces which have a pemanent dono-imposed estiction which stipulates that the assets ae to be maintained pemanently, but pemits the oganization to expend pat o all of the income deived fom the donated assets. NOTE 7 - LINE OF CREDIT: The Oganization established a $25,000 line of cedit with Capital One Bank. The inteest ate on the line of cedit is 11.75% and the outstanding balance is $-0- at Decembe 31, i

16 BOYS AND GIRLS CLUB OF WEST MONROE, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2006 NOTE 8 - GRANT RECEIVABLES: Accounts Receivable - Gants at Decembe 31, 2006 consists of eimbusements fo expenses incued unde the vaious gant pogams. The following list pesents Accounts Receivable - Gants by fund at Decembe 31, 2006: Goveno's Safe and Dug-Fee Schools and Communities Pogam 2,710 Office of Juvenile Justice and Delinquency Pevention 25,373 Louisiana Alliance of Boys and Gils Clubs 461 Tempoay Assistance fo Needy Families 875 Total

17 SUPPLEMENTARY FINANCIAL INFORMATION

18 BOYS AND GIRLS CLUB OF WEST MONROE, INC. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS DECEMBER 31, 2006 SCHEDULE I Fedeal Ganto/Pass-Though Ganto/Pogam Title Office of Justice Pogams Tempoay Assistance fo Needy Families (Pass-Though Funds) TOTAL Fedeal CFDA Numbe Fedeal Disbusements/ Expenditues 55,992 16,093 72,

19 SCHEDULE I (CONTINUED) BOYS AND GIRLS CLUB OF WEST MONROE, INC. NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS DECEMBER 31, 2006 NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditues of fedeal awads includes the fedeal gant activity of Boys and Gils Club of West Monoe, Inc. and is pesented on the accual basis of accounting. NOTE 2 - SUBRECIPIENTS Boys and Gils Club of West Monoe, Inc. did not povide fedeal awads to subecipients

20 BOYS AND GIRLS CLUB OF WEST MONROE, INC. SCHEDULE OF BOARD MEMBERS COMPENSATION FOR THE YEAR ENDED DECEMBER 31, 2006 SCHEDULE II No compensation was paid to any boad membe duing the yea unde audit

21 BOYS AND GIRLS CLUB OF WEST MONROE, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2006 SECTION I SUMMARY OF AUDITORS' RESULTS Financial Statements Type of auditos' epot issued: Unqualified Intenal contol ove financial epoting: * Mateial weakness(es) identified? yes X no * Contol deficiency(s) identified that ae not consideed to be mateial weaknesses? X yes none epoted Noncompliance mateial to financial statements noted? yes X no

22 BOYS AND GIRLS CLUB OF WEST MONROE, INC. WEST MONROE, LOUISIANA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2006 SECTION II FINANCIAL STATEMENT FINDINGS Intenal Contol 06-1 Citeia: Condition: Cause: Questioned Costs Context: Effect: Recommendation: Reply: Invoices should be paid timely each month. Seveal invoices and payoll tax epots wee not paid timely, esulting in inteest and penalties, and the Oganization is opeating with a deficit. Due to cash flow poblems duing the yea, the Oganization incued substantial penalties and inteest on vendo invoices and payoll taxes. In addition, the Oganization incued an opeating deficit duing the yea. None Intenal Contols This finding has no effect on the financial statements. The Boad of Diectos should develop a plan to assist in funding the opeating budget and ensuing vendo invoices and payoll taxes ae paid timely. Management agees with this finding and will ensue vendo invoices and payoll liabilities ae paid timely, and the Boad of Diectos will develop a plan to contol the opeating budget. Compliance Thee wee no findings no questioned costs fo compliance fo the yea ended Decembe 31,

23 JL_ BOYS AND GIRLS CLUB OF WEST MONROE, INC. CORRECTIVE ACTION TAKEN ON PRIOR YEAR FINDINGS DECEMBER 31, 2006 Thee wee no pio yea findings