Le Petit Theatre Du Vieux Carre

Transcription

1 RECEIVED LEGISLATIVE AUDITOR 2088 OCT-6 AH Le Petit Theatre Du Vieux Carre Financial Statements For The Year Ended June 30, 2007 Under provisions of state law, this report is a public document. Acopy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court. Release Date

2 LE PETIT THEATRE DU VIEUX CARRE TABLE OF CONTENTS JUNE 30, 2007 INDEPENDENT AUDITOR'S REPORT 1 FINANCIAL STATEMENTS STATEMENT OF FINANCIAL POSITION 2 STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS 3-4 STATEMENT OF CASH FLOWS 5-6 STATEMENT OF FUNCTIONAL EXPENSES 7 NOTES TO FINANCIAL STATEMENTS 8-13 SPECIAL REPORTS OF INDEPENDENT AUDITOR 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 SCHEDULE OF FINDINGS AND RESPONSES SPECIAL REPORTS OF MANAGEMENT SCHEDULE OF PRIOR YEAR FINDINGS 19 MANAGEMENT CORRECTIVE ACTION PLAN 20

3 Reginald A. Bresette, III Limited Liability company Reginald A. Bresette, III, CPA Member American Institute of Certified Public Accountants Society of Louisiana Certified Public Accountants INDEPENDENT AUDITOR'S REPORT To the Board of Governors of Le Petit Theatre du Vieux Carre New Orleans, Louisiana We have audited the accompanying statement of financial position of Le Petit Theatre du Vieux Carre, (a non-profit organization) (the Theatre) as of June 30, 2007, and the related statements of activities, functional expenses and changes in net assets, and cash flows for the year then ended. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Theatre as of June 30, 2007, and the changes in its net assets and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued a report dated September 19, 2008, on our consideration of The Theatre's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of out testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. September 19, Yale street, Suite A Metairie, Louisiana (504) FAX (504) CELL (504) reggie@bresetteco.com

4 LE PETIT THEATRE DUE VIEUX CARRE STATEMENT OF FINANCIAL POSITION JUNE 30, 2007 Current Assets Cash and cash equivalents Accounts receivable Total Current Assets Property and Equipment, Net (Note 3) ASSETS 2007 $ 210, , ,958 1,785,279 Other Assets Investments, restricted (Note 2) Total Other Assets Total Assets 238, ,793 $ 2,438,030 Current Liabilities Accounts payable Accrued expenses Current portion of long-term debt Total Current Liabilities LIABILITIES AND NET ASSETS $ 178, , ,756 Long-Term Liabilities Note payable (Note 5) Total Long-Term Liabilities Total Liabilities 749, , ,657 Unrestricted Permanently restricted by donors (Note 4) Totai Net Assets Total Liabilities and Net Assets 1,237, ,793 1,476,373 $ 2,438,030 (See Accompanying notes to financial statements) 2

5 LE PETIT THEATRE DU VIEUX CARRE STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, Unrestricted Temporarily Permanently Restricted Restricted Total Public Support, Revenues and Reclassifications Public support: Contributions Grants Total Public Support Revenues: Program service revenue Investment income (Note2) Unrealized gain (Note 2) Miscellaneous Total revenue Reclassifications: Net assets released from restrictions Expiration of time restrictions Total Reclassifications Total Public Support, Revenues and Reclassifications $ 120,637 $ 63, , ,091 4,114-27, ,381 7,760 7,760 $ 631,974 $ - $ 2,000 $ 122,637 63,196 2, , ,091 11,110 15,224 21,371 21,371 27,176 32, ,862 (7,760) (7,760) - $ 26,721 $ 658,695 (See accompanying notes to financial statements) 3

6 LE PETIT THEATRE DU VIEUX CARRE STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS (CONTINUED) FOR THE YEAR ENDED JUNE 30, Temporarily Permanently Unrestricted Restricted Restricted Total Expenses Program Services Total Program Services Supporting Services: Management and general Fund Raising Total Supporting Services Total Expenses Increase (Decrease) in Net Assets Net assets at beginning of year Net assets at end of year $ 720,609 $ 720, ,235 11, , ,962 (215,988) 1,453,568 $ 1,237,580 $ - $ - $ 720, ,609 1, ,338 11,118 1, ,456 1, ,065 25,618 (190,370) 213,175 1,666,743 $ 238,793 $ 1,476,373 (See accompanying notes to financial statements) 4

7 LE PETIT THEATRE DU VIEUX CARRE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, Reconciliation of change in net assets to net cash provided (used) by operating activities: Change in net assets Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization Decrease (increase) in receivables Decrease (increase) in investments Increase (decrease) in accounts payable Increase (decrease) in accrued expenses Unrealized gains on investments in endowment Income earned by endowment Administration fees in endowment Permantly restricted contributions Net cash provided (used) by operating activities Cash flows from investing activities: Acquisition of fixed assets Net cash provided (used) by investing activities $ (190,370) 69, , ,908 7,507 (7,292) (21,370) (11,110) 1,103 (2,000) 402,409 (191,878) (191,878) Cash flows from financing activities: Proceeds from contributions, permanently restricted Payments on line of credit Proceeds from long-term debt Payments on bond payable Payment on capital lease obligation Net cash provided (used) by financing activities 7,760 (150,000) 783,000 (666,375) (1.876) $ (27,491) (See accompanying financial statements) 5

8 LE PETIT THEATRE DU VIEUX CARRE STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2007 Net increase (decrease) in cash $ 183,040 Cash - beginning of year 27,197 Cash - end of year 210,237 Supplemental data: Interest paid $ 47,739 (See accompanying financial statements) 6

9 LE PETIT THEATRE DU VIEUX CARRE STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, Salaries Employee benefits and payroll taxes PROGRAM MANAGEMENT FUND SERVICES & GENERAL RAISING $ 103,600 9,771 $ 22,225 2,096 $ 8, TOTAL $ 134,715 12,706 Total salaries and related expenses 113,371 24,321 9, ,421 Director Stage manager Set Lighting and sound Costumes Music and choreography Props Hair and makeup Production royalties Production licenses Advertising Contract labor Pension expense Miscellaneous production expense Fundraising Insurance Office expense Bank charges Interest expense Miscellaneous expense Repairs and maintenance Rent Telephone Utilities Taxes and licenses Parking Depreciation and amortization 5,000 4, ,750 51,019 44,477 52,599 2,225 1,654 37, ,854 23, ,359 29,135 35,786 33,417 9,502 21,570 8, ,386 4,446 4,440 48, ,487 5,719 15,337 14,322 4,071 9, ,308 1,906 20,905 1,389 5,000 4, ,750 51,019 44,477 52,599 2,225 1,654 37, ,854 23, ,359 1,389 41,622 5,719 51,123 47,739 13,573 30,814 8,250 1,436 27,694 6,352 4,440 69,684 $ 720,609 $ 117,338 $ 11,118 $ 849,065 (See accompanying notes to financial statements) 7

10 Le Petit Theatre du Vieux Carre Notes To Financial Statements For the Year Ended June 30, 2007 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Le Petit Theatre du Vieux Carre (the Theatre) was organized in 1922 to present theatrical performances for the community. The mission of the Theatre is to present quality theatre at affordable prices, to promote cultural activities, and to provide cultural outreach opportunities to the Greater New Orleans community. Basis of Accounting and Presentation The financial statements of the Theatre are presented on the accrual basis of accounting and in accordance with the recommendations of the American Institute of Certified Public Accountants in its Industry Audit Guide, "Audits of Certain Nonprofit Organizations". Basis of Accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements, and relates to the timing of the measurements made. Cash and Cash Equivalents For purposes of the statements of cash flows, the Theatre considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Investments The Theatre carries investments in debt securities with readily determinable fair values in the statement of financial position. Unrealized gains and losses are included in the change in net assets in the accompanying statement of activities. Property and Equipment The Theatre has adopted a practice of capitalizing all expenditures for depreciable assets where the unit cost exceeds $500. Property and equipment consists of Land, building and improvements, furniture and fixtures, and stage equipment, and is carried at cost, except for land which is carried at its 1929 appraised value. Depreciation of these assets is provided on a straight-line basis over their estimated useful lives as follows: Building and improvements Furniture and fixtures Equipment years 5-7 years 5-10 years Depreciation expense For the Year Ended June 30, 2007 was $ 61,288.

11 Le Petit Theatre du Vieux Carre Notes To Financial Statements (Continued) For the Year Ended June 30, 2007 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Contributions All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and are reported in the statements of activities as net assets released from restriction. Gifts of long-lived operating assets such as land, buildings, or equipment are reported as unrestricted support, unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about how long these long-lived assets must be maintained, expirations of donor restrictions are reported when the donated or acquired long-lived assets are placed in service. Contributions of donated non-cash assets (such as materials and equipment) are recorded at their fair or estimated values in the period received. Financial Statement Presentation Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. Net assets, support and revenues, and expenses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, the net assets of the Theatre and changes therein are classified and reported as follows: Unrestricted net assets - Net assets that are not subject to donor-imposed stipulations. Temporarily restricted net assets - Net assets subject to donor-imposed stipulations that will be met either by actions of the Theatre and/or the passage of time. The Theatre does not have any temporarily restricted net assets. Permanently restricted net assets - Net assets subject to donor-imposed stipulations that neither expire by the passage of time nor can be fulfilled and removed by actions of the Theatre pursuant to those stipulations.

12 Le Petit Theatre du Vieux Carre Notes To Financial Statements (Continued) For the Year Ended June 30, 2007 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates. Advertising The Theatre expenses all non-direct response advertising and costs as incurred. Advertising expense For the Year Ended June 30, 2007 was $ 9,854. Income taxes The Theatre is exempt from Federal income taxes under Section (c)(3) of the Internal Revenue Code and from State income taxes under Section 121 (5) of Title 47 of the Louisiana Revised Statutes of Allocation of Functional Expenses Expenses are summarized on a functional basis. Salaries and related payroll expenses are distributed based upon the time spent for each function. Distribution of all other shared expenses is based upon management's estimates of the usage applicable to conducting various program or support activities. NOTE 2 - INVESTMENTS Fair Value Permanently restricted for endowments: Investments in mutual funds $ 238,793 Investment return is summarized as follows For the Year Ended June 30, 2007: Investment income $ 15,224 Unrealized gains $21,371 10

13 Le Petit Theatre du Vieux Carre Notes To Financial Statements (Continued) For the Year Ended June 30, 2007 NOTE 3 - PROPERTY AND EQUIPMENT Property and equipment consists of the following as of June 30, 2007: Land $ 20,000 Building and improvements 2,041,276 Furniture and fixtures 113,471 Equipment 410,214 2,584,961 Less accumulated depreciation ( 799,682) Construction in progress - - Included in the accompanying balance sheet under the following captions: NOTE 4 - PERMANENTLY RESTRICTED ASSETS Permanently restricted assets consist of endowment funds. The income of each is dedicated to specific purposes. The Rhea Loeb Deutsch Memorial Fund is administered by the Board of Governors of the Theatre. The Le Petit Theatre Fund and The Harold Newman Fund are administered by the Greater New Orleans Foundation. As of June 30, 2007, these restricted assets were as follows: Rhea Loeb Deutsch Memorial Fund $ 6,026 Harold Newman Endowment Fund 185,457 Le Petit Theatre Endowment Fund 47,310 $

14 Le Petit Theatre du Vieux Carre Notes to Financial Statements (Continued) For the Year Ended June 30, 2007 NOTE 5 - LONG-TERM DEBT Long-term debt at June 30, 2007 consists of the following: Note payable to Capital One Bank, secured by the building and improvements at 616 St. Peters. Payable as follows: 6 monthly payments of interest only at 1.5% + LIBOR. Starting August 27, monthly payments of $ 3,009 principal plus interest; the final payment for the remaining balance plus due January 23, $ 783,000 Total long-term debt 783,000 Less: current maturities of long-term debt 33,099 Non-current long-term debt $ Maturities of long-term debt are as follows: 2008 $ 33, ,901 S NOTE 6 - RELATED PARTY TRANSACTIONS The Theatre has conducted business with various entities and persons who are related to board members or employees either as officers of those entities or have familial relationships. The applicable officers or board members are in a position to, and in the future may, influence the volume of activity, price or other factors, which may benefit the persons or entities to which they are related. The transactions are immaterial in amount. NOTE 7 - CONCENTRATIONS The Company's financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents. The Company places its cash and temporary cash investments with high quality credit institutions. At times such investments may be in excess of the FDIC insurance limit. 12

15 Le Petit Theatre du Vieux Carre Notes To Financial Statements (Continued) For the Year Ended June 30, 2007 NOTE 8 - BOARD OF DIRECTORS' COMPENSATION The Board of Directors is a voluntary board; therefore, no compensation has been paid to a member. 13

16 SPECIAL REPORTS OF INDEPENDENT AUDITOR

17 ReginaldA. Bresette, ill Limited Liability Company Reginald A. Bresette, III, CPA Member American Institute of Certified Public Accountants Society of Louisiana Certified Public Accountants 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 To the Board of Directors, Le Petit Theatre du Vieux Carre We have audited the financial statements of Le Petit Theatre du Vieux Carre (the Theatre) (a nonprofit organization) as of and for the year ended June 30, 2007, and have issued our report thereon dated September 19, We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Theatre's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Theatre's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Theatre's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. (504) Yale Street, Suite A Metairie, Louisiana FAX (504) CELL (504) reggie@bresetteco.com

18 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Theatre's financial statements are free of material mis statement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which, are described in the accompanying schedule of findings and responses as items through The Theatre's responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. We did not audit the Theatre's response and, accordingly, we express no opinion on it. This report is intended solely for the information and use of the Theatre's board of directors, others within the entity, and the Legislative Audit Advisory Committee, and is not intended to be and should not be used by anyone other than these specified parties. Regjji&la A. Bresette, III LLC Certified Public Accountants September 19,

19 SCHEDULE OF FINDINGS AND RESPONSES For the Year Ended June 30, 2007 We have audited the financial statements of Le Petit Theatre du Vieux Carre (the Theatre) as of and For the Year Ended June 30, 2007, and have issued our report thereon dated September 19, We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by Comptroller General of the United States. Our audit of the financial statements as of June 30, 2007, resulted in an unqualified opinion. Section I Summary of Auditor's Reports a. Report on Internal Control and Compliance Material to the Financial Statements Internal Control Material Weaknesses - None Significant Deficiencies - Yes Compliance Compliance Material to Financial Statements - No Compliance Immaterial to Financial Statements - Yes Findings - The audited financial statements are required to be filed with the State of Louisiana Legislative Auditor within six months of the end of the fiscal year or December 31, The report was filed after that date. Cause - Extenuating circumstances as a result of Hurricane Katrina resulted in a delay of the completion and submission of the report in a timely manner Findings: As is common in small organizations, management has chosen to engage the auditor to propose certain year-end adjusting journal entries and to prepare their annual financial statements. This condition is intentional by management based upon the Agency's financial complexity, along with the cost effectiveness of acquiring the ability to prepare financial statements in accordance with generally accepted accounting principles. Consistent with this decision, internal controls over the preparation of year-end adjusting entries and annual financial statements, complete with notes, in accordance with generally accepted accounting principles, have not been established. Under generally accepted auditing standards, this condition represents a significant deficiency in internal controls. 16

20 SCHEDULE OF FINDINGS AND RESPONSES (CONTINUED) For the Year Ended June 30, 2007 Recently issued Statement on Auditing Standards (SAS) 112 requires that we report the above condition as a control deficiency. The SAS does not provide exceptions to reporting deficiencies that are adequately mitigated with nonaudit services rendered by the auditor or deficiencies for which the remedy would be cost prohibitive or otherwise impractical. Recommendation: As mentioned above, whether or not it would be cost effective to cure a control deficiency is not a factor in applying SAS 112's reporting requirements. Because prudent management requires that the potential benefit from an internal control must exceed its cost, it may not be practical to correct all the deficiencies an auditor reports under SAS 112. In this case we do not believe that curing the significant deficiency described above would be cost effective or practical and accordingly do not believe any corrective is necessary. Management's Response: We concur with the audit finding Findings: We noted that the Theatre did not file its prior year's Form 990 IRS tax return in a timely manner. Recommendation: We recommend the Theatre file its Form 990 IRS tax return on a timely basis. Management's Response: Management has engaged an accountant who properly filed all past due tax forms and timely filed all current tax forms Findings: Our examination disclosed there is lack of segregation of duties within the organization (especially in the areas of cash receipts and ticket sales). This weakness is due to the fact that the organization has a very small staff and only one person is primarily responsible for ticket sales and deposits. Due to the lack of segregation of duties, possible errors or irregularities could occur in the accounting records and not be detected. Understandably, since the organization has such a small staff, the most ideal system of internal control or the most desirable accounting system may not be practicable. Also the cost of hiring additional employees to handle separate aspects of the accounting function might exceed any benefits gained. 17

21 SCHEDULE OF FINDINGS AND RESPONSES (CONTINUED) For the Year Ended June 30, 2007 Recommendation: Based upon the cost-benefit of hiring additional accounting personnel, it may not be feasible to achieve complete segregation of duties. We recommend that the organization finance committee and executive director continue to closely monitor all records and transactions. Response: The organization's executive director and board concur with the recommendation. b. Federal Awards The Theatre did not receive federal awards during the year ended June 30, Section II Financial Statement Findings There were no financial statement findings during the fiscal year ended June 30, Section III Federal Award Findings and Responses The Theatre did not receive federal awards during the year ended June 30,

22 SPECIAL REPORTS OF MANAGEMENT

23 SCHEDULE OF PRIOR YEAR FINDINGS For the Year Ended June 30, 2007 SECTION I INTERNAL CONTROL AND COMPLIANCE MATERIAL TO THE FINANCIAL STATEMENTS Internal Control Material Weaknesses - None Significant Deficiencies - None Compliance Compliance Material to Financial Statements - No Compliance Immaterial to Financial Statements - Yes Findings - (2006-1) The audited financial statements are required to be filed with the State of Louisiana Legislative Auditor within six months of the end of the fiscal year or December 31, The report was filed after that date. Cause - Extenuating circumstances as a result of Hurricane Katrina resulted in a delay of the completion and submission of the report in a timely manner. SECTION II INTERNAL CONTROL AND COMPLIANCE MATERIAL TO FEDERAL AWARDS The Theatre did not receive federal awards during the year ended June 30, SECTION III MANAGEMENT LETTER There was no management letter issued for the audit year ended June 30,

24 MANAGEMENT CORRECTIVE ACTION PLAN For the year ended June 30, 2007 SECTION I INTERNAL CONTROL AND COMPLIANCE MATERIAL TO THE FINANCIAL STATEMENTS The Theatre had no material weaknesses or reportable conditions in internal control. Also, there were no compliance issues material to the financial statements. SECTION II INTERNAL CONTROL AND COMPLIANCE MATERIAL TO FEDERAL AWARDS The Theatre did not receive federal awards during the year ended June 30, SECTION III MANAGEMENT LETTER There was no management letter issued for the audit year ended June 30,