WILDLIFE FOUNDATION OF FLORIDA, INC. TALLAHASSEE, FLORIDA. FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION June 30, 2009 and 2008

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1 WILDLIFE FOUNDATION OF FLORIDA, INC. TALLAHASSEE, FLORIDA FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION June 30, 2009 and 2008

2 CONTENTS Page No. INDEPENDENT AUDITOR S REPORT....1 MANAGEMENT S DISCUSSION AND ANALYSIS...3 BASIC FINANCIAL STATEMENTS Statements of Net Assets...5 Statements of Revenues, Expenses and Changes in Net Assets...6 Statement of Operating Expenses...7 Statements of Cash Flows...8 Notes to the Financial Statements...9 SUPPLEMENTARY INFORMATION Schedule of Expenditures of State Financial Assistance...16 REPORT REQUIRED UNDER GOVERNMENT AUDITING STANDARDS AND CHAPTER , RULES OF THE AUDITOR GENERAL 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...18 Report on Compliance With Requirements Applicable to Each Major State Program and on Internal Control Over Compliance in Accordance with Chapter , Rules of the Auditor General...20 Summary Schedule of Findings and Questioned Costs...22

3 LANIGAN & ASSOCIATES, P.C. CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT CONSULTANTS 314 Gordon Avenue Thomasville, GA (229) Facsimile: (229) INDEPENDENT AUDITOR S REPORT 2630 Centennial Place, Suite 1 Tallahassee, FL (850) Facsimile: (850) tallahassee@lanigancpa.com To the Board of Directors Wildlife Foundation of Florida, Inc. Tallahassee, Florida 3108 Piedmont Road, Suite 105 Atlanta, GA (404) lanigan@lanigancpa.com We have audited the accompanying statements of net assets of Wildlife Foundation of Florida, Inc. (a nonprofit organization) as of June 30, 2009 and 2008, and the related statements of revenues, expenses and changes in net assets, operating expenses and cash flows for the years then ended. These financial statements are the responsibility of the Organization s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governmental 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 Wildlife Foundation of Florida, Inc. as of June 30, 2009 and 2008, and the changes in its net assets and its cash flows for the years 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 our report dated September 4, 2009, on our consideration of Wildlife Foundation of Florida, Inc. s, internal control over financial reporting and on our tests of its compliance with certain provisions of law, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our 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 considered in assessing the results of our audit. 1

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5 Management s Discussion and Analysis Our discussion and analysis of the Wildlife Foundation of Florida s (the Foundation) financial performance provides an overview of the Foundation s financial activities for the fiscal year ended June 30, Please read it in conjunction with the Foundation s basic financial statements, which begin on page 5. The Foundation was formed on September 29, 1994, as a nonprofit organization to provide assistance, funding and promotional support to contribute to the health and well-being of Florida's fish and wildlife resources and their habitats. The Foundation is the citizen-support organization of the Florida Fish and Wildlife Conservation Commission as authorized by Section , Florida Statutes. The Foundation issues financial statements comprising two components: 1) basic financial statements and 2) notes to the financial statements. The Foundation is considered a component unit of the Florida Fish and Wildlife Conservation Commission. The following table presents the Foundation s condensed Statement of Net Assets as of June 30, 2009 and 2008 as derived from the Statements of Net Assets. Table 1 Net Assets Total Assets $3,871,757 $2,218,239 Liabilities $ 35,607 $ 18,204 Net Assets $3,836,150 $2,200,035 The following table presents the Foundation s condensed Statement of Activities for the fiscal years ended June 30, 2009 and 2008 as derived from the Statements of Revenues, Expenses, and Changes in Net Assets. Table 2 Changes in Net Assets Total Revenues $3,120,747 $1,527,078 Total Expenditures $1,484,632 $1,374,702 Change in Net Assets $1,636,115 $ 152,376 3

6 Additional Information The Foundation s 74% increase in Net Assets was largely due to the acquisition of a new revenue stream. The gopher tortoise is an imperiled species, and Section , Florida Statutes, as amended by Chapter , Laws of Florida, Section 13 requires that mitigation fees received by the Commission from private or public entities for projects to offset adverse impacts to imperiled species shall be deposited with the Foundation to be used solely to manage state lands for the restoration of those species or to acquire imperiled species habitat. For the year ended June 30, 2009, the Foundation received $1,526,705 for this project. The Foundation s Affinity banking relationship also yielded remarkable results providing $83,169 in revenue. The increase in operating revenues offset a 5% loss in the investment portfolio and a 33% decline in annual giving. Unrestricted Funds increased by 258% for the year while Restricted Funds increased by 70% for the year. Requests for Information Questions concerning any of the information provided in this report or requests for additional information should be addressed to Will Bradford, Chief Financial Officer, (850) extension or foundation@myfwc.com. 4

7 WILDLIFE FOUNDATION OF FLORIDA, INC. STATEMENTS OF NET ASSETS June 30, 2009 and ASSETS Current Assets Cash and Cash Equivalents $ 1,269,870 $ 614,445 Grant Receivables 38,060 21,310 Pledge Receivables 69,723 27,575 Prepaid Expenses 1,454 - Total Current Assets 1,379, ,330 Investments Securities and Other Negotiable Instruments 2,490,137 1,551,472 Capital Assets Capital Assets, Net of Accumulated Depreciation 2,513 3,437 TOTAL ASSETS $ 3,871,757 $ 2,218,239 LIABILITIES AND NET ASSETS Current Liabilities Accounts Payable $ 35,607 $ 18,204 Net Assets Invested in Capital Assets, Net of Accumulated Depreciation 2,513 3,437 Restricted 3,666,288 2,150,307 Unrestricted 167,349 46,291 TOTAL LIABILITIES AND NET ASSETS $ 3,871,757 $ 2,218,239 See accompanying notes to the financial statements 5

8 WILDLIFE FOUNDATION OF FLORIDA, INC. STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For the Years Ended June 30, 2009 and Operating Revenues Conserve Wildlife License Plate Program $ 369,475 $ 394,840 Discover Florida's Oceans Licnese Plate Program 76,407 80,603 Protect Florida Springs License Plate Program 57,578 12,525 Imperiled Species 1,526,705 - Program Service Fees 292, ,120 Contributions and Donations 593, ,181 Other Revenue 117,625 75,987 Total Operating Revenues 3,033,883 1,438,256 Operating Expenses Program Expenses 987, ,115 Administrative and Office Expenses 339, ,504 Fundraising Expenses 577 3,663 Total Operating Expenses 1,327,752 1,194,282 Total Operating Income 1,706, ,974 Non-Operating Income/(Expenses) Unrealized Gain (Loss) on Investments (156,425) (147,383) Realized Gain (Loss) on Investments (455) (33,037) Dividend and Interest Income 86,864 88,822 Total Non-Operating Income/(Expenses) (70,016) (91,598) Change in Net Assets 1,636, ,376 Net Assets, Beginning of Year 2,200,035 2,047,659 Net Assets, End of Year $ 3,836,150 $ 2,200,035 See accompanying notes to the financial statements 6

9 WILDLIFE FOUNDATION OF FLORIDA, INC. STATEMENT OF OPERATING EXPENSES For the Year Ended June 30, 2009 Administrative 2009 Program and Office Fundraising Total Expenses Accounting and Legal Expense $ 15,482 $ 14,960 $ - $ 30,442 Advertising Expenses 4, ,892 Business Registration Fees Cash Awards and Grants 911, ,783 Employee Benefits - 14,839-14,839 Equipment Rental and Maintenance Fundraising Fees Insurance - 1,365-1,365 Interest Expense Investment Account Charges 23,917 9,076-32,993 Meeting Expense 560 1,802-2,362 Merchant Account Fees - 2,065-2,065 Miscellaneous Expenses 1,600 1,635-3,235 Occupancy 1, ,322 Occupancy - Donated - 90,000-90,000 Outside Contract Services 7, ,500 Outside Contract Services- Donated - 84,531-84,531 Payroll Taxes - 6,514-6,514 Payroll Taxes - Donated - 1,534-1,534 Postage Salaries and Wages - 85,150-85,150 Salaries and Wages - Donated - 20,047-20,047 Supplies Telephone and Telecommunications 1, ,635 Travel 9,364 1,306-10,670 Web Site Fees 9,440 2,429-11,869 Total Expenses Before Depreciation 987, , ,326,828 Depreciation Expense TOTAL EXPENSES $ 987,515 $ 339,660 $ 577 $ 1,327,752 See accompanying notes to the financial statements 7

10 WILDLIFE FOUNDATION OF FLORIDA, INC. STATEMENTS OF CASH FLOWS For the Years Ended June 30, 2009 and CASH FLOWS FROM OPERATING ACTIVITIES Conserve WildlifeLicense Plate Program Receipts $ 369,475 $ 419,625 Discover Florida's Oceans License Plate Program Receipts 59,657 74,633 Protect Florida Springs License Plate Program 57,578 12,525 Project Revenue 2,488, ,436 Payments to Vendors (1,310,879) (1,016,488) Net Cash Provided by Operating Activities 1,664, ,731 CASH FLOWS FROM INVESTING ACTIVITIES Loss on Life Insurance - (33,905) Purchase of Investments (2,262,046) (892,532) Proceeds from Sale of Investments 1,166, ,537 Interest and Dividend Income 86,864 88,822 Net Cash (Used In) Investing Activities (1,008,681) (278,078) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of Capital Assets - (1,662) Net Increase (Decrease) in Cash and Cash Equivalents 655,425 (13,009) Cash and Cash Equivalents and Beginning of Year 614, ,454 Cash and Cash Equivalents at End of Year $ 1,269,870 $ 614,445 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income $ 1,706,131 $ 243,974 Adjustments to reconcile operating income to net cash provided by operating activities Depreciation (Increase) Decrease in Accounts Receivable (58,898) 32,812 (Increase) in Prepaid Expenses (1,454) - Increase (Decrease) in Accounts Payable 17,403 (10,958) Net Cash Provided by Operating Activities $ 1,664,106 $ 266,731 See accompanying notes to the financial statements 8

11 WILDLIFE FOUNDATION OF FLORIDA, INC. NOTES TO THE FINANCIAL STATEMENTS NOTE 1: Summary of Significant Accounting Policies Organization The Wildlife Foundation of Florida, Inc. (the Foundation ) was formed on September 29, 1994, as a nonprofit organization to provide assistance, funding and promotional support to contribute to the health and well-being for Florida s fish and wildlife resources and their habitats. The Foundation is a citizen-support organization of the Florida Fish and Wildlife Conservation Commission created pursuant to F.S Basis of Accounting and Financial Statement Presentation The Foundation s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The Foundation operates as a special-purpose government entity engaged in business type activities. Business type activities are those that are financed in whole or in part by fees charged to external parties for goods and services. Accordingly, these financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting. The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local government through its pronouncements (Statements and Interpretations). Governments are also required to follow the pronouncements of Financial Accounting Standards Board (FASB) issued through November 30, 1989 (when applicable) that do not conflict with or contradict GASB pronouncements. Although the Foundation has the option to apply FASB pronouncements issued after that date to its business-type activities, the Foundation has elected not to do so. The Foundation has adopted the provisions of GASB Statement No. 34, Basic Financial Statements and Management s Discussion and Analysis for State and Local Governments. Reporting Entity In evaluating how to define the Foundation for financial reporting purposes, management has considered the criteria set forth in GASB No. 39 Determining Whether Certain Organizations Are Component Units. This Statement amends GASB Statement No. 14, The Financial Reporting Entity, and provides additional guidance to determine whether an affiliated organization is considered a component unit of a financial reporting entity. The Financial Reporting Entity consists of the primary government, organizations for which the primary government is financially accountable and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity s financial statements to be misleading or incomplete. 9

12 The Foundation is included in the financial statements of the State of Florida as the State is the primary government of the Foundation. In evaluating the Foundation as a reporting entity, management has addressed GASB Statement No. 39 to determine potential component units which may fall within the Foundation s financial statements. Based on the criteria in GASB Statement No. 39, no component units were identified for the years ended June 30, 2009 and Cash Equivalents For purposes of the statements of cash flows, the Foundation considers all unrestricted highly liquid investments with an original maturity of three months or less to be cash equivalents. Capital Assets NOTE 1: Summary of Significant Accounting Policies (Continued) Capital assets purchased or acquired are reported at historical cost or estimated historical cost. Contributed assets are reported at fair market value as of the date received. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. Capital assets are depreciated using the straight-line method over their estimated useful life of 5 years. Organization Funding Operating revenues include grants, contributions, and other revenue sources used to fund the annual operating activities of the Foundation. Specifically, the Foundation s major revenue sources are as follows: Conserve Wildlife license plate annual use fee as outlined in F.S (24). Discover Florida s Oceans license plate annual use fees as outlined in F.S (50) Protect Florida Springs license plate annual use fee as outlined in F.S (62) The mitigation fees from private or public entities for projects to offset adverse impacts to imperiled species as outlined in F.S (2)(a)(11)(a) Banking Relationship Affinity Royalties Donated Assets Contributions of donated non-cash assets are recorded at their fair market values in the period received. 10

13 Donated Services Contributions of donated services that create or enhance non-financial assets or that require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation, are recorded at their fair market values in the period received in accordance with Statement of Financial Accounting Standards No. 116 Accounting for Contributions Received and Contributions Made. Investments NOTE 1: Summary of Significant Accounting Policies (Continued) Investments are accounted for at fair value in accordance with Governmental Accounting Standards Board Statement No. 31 Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Additional investment information and fair values are presented in Note 4. Restricted Assets Restricted assets are limited assets generated from revenues which have third-party limitations on their use. The Foundation would typically use restricted assets first, as appropriate opportunities arise, but reserve the right to selectively defer the use thereof to a future project. Income Taxes The Foundation qualifies for exemption from federal income taxes under Section 501(c)(3) of the Internal Revenue Code. Therefore, no provision for income taxes has been recorded. Use of Estimates The preparation of these 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. Actual results may differ from those estimates. 11

14 NOTE 2: Economic Dependency The revenue from specialty plate sales and imperiled species is granted by the Florida Legislature and is subject to change based on future legislation. Revenues received from specialty plate sales and imperiled species consisted of the following: 2009 % Total Revenues 2008 % Total Revenues Specialty License Plate Annual Use Fees $ 503,460 17% $ 487,968 34% Imperiled Species 1,526,705 50% - 0% NOTE 3: Restricted Net Assets Restricted net assets consist of the following as of June 30: Conserve Wildlife Tag $ 848,319 $ 917,813 Discover Florida's Oceans Tag 163, ,517 Protect Florida Springs Tag 10, Mitigation 554, ,012 FWC Projects 532, ,835 Imperiled Species 1,485,108 - Other 72, ,980 Total $ 3,666,288 $ 2,150,307 12

15 NOTE 4: Deposits and Investments Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the Foundation s deposits may not be returned. Deposits in banks are insured through FDIC and cash deposited in investment accounts is insured through SIPC. As of June 30, 2009 and 2008, the carrying amounts of the Foundation s deposits were $1,269,870 and $614,445, respectively, and financial institution balances totaled $1,349,658 and $695,924, respectively. As of June 30, 2009, none of the Foundation s deposits were exposed to custodial credit risk. Investments As of June 30, the Foundation had the following investments: Investment Fair Value Fair Value Certificates of Deposits $ 986,700 $ 34,313 Equity Separately Managed Accounts 352, ,916 Corporate Bonds 225,031 55,987 Government Agency 320, ,154 Corporate Stock 124, ,502 Fixed Income Separately Managed Accounts 481, ,600 Total $ 2,490,137 $ 1,551,472 The investment balances are entirely insured or collateralized with securities held by the Foundation s agent in the Foundation s name. Investment Income reflected in the Statement of Revenues, Expenses, and Changes in Net Assets for the years ended June 30, 2009 and 2008 includes unrealized depreciation of $156,425 and $147,383, respectively. This depreciation is attributable to the change in fair value of investments during the year. Concentration of Credit Risks The Foundation s investment policy does not allow for an investment in any one individual security that is in excess of five percent of the Foundation s total investments. 13

16 NOTE 5: Capital Assets The cost and related accumulated depreciation for Capital Assets as of June 30, 2009 and 2008 are as follows: June 30, June 30, 2008 Additions Retirements 2009 Equipment $ 4,862 $ - $ - $ 4,862 Less: Accumulated Depreciation (1,425) (924) - (2,349) Capital Assets, net $ 3,437 $ (924) $ - $ 2,513 NOTE 6: Related Party Transactions Wildlife Foundation of Florida, Inc. is a citizen support group of the Florida Fish and Wildlife Conservation Commission as authorized in Section of the Florida Statutes. As also authorized by the statute, the Foundation utilizes Commission personnel, property, and facilities to assist in its activities. The fair market value of these in-kind contributions has been reported in the accompanying financial statements. NOTE 7: Risk Management The Foundation is exposed to various risks of loss in the normal course of business. Conventional commercial insurance coverage has been purchased from various independent carriers to insure against such risks and minimize the Foundation s financial exposure to such risks. The Foundation is not involved in any risk pools with other governmental entities. NOTE 8: Commitments The Foundation has contracts outstanding with third parties for the provision of services under the Conserve Wildlife License Plate Program, Discover Florida s Oceans License Plate Program, Mitigation Programs and Florida Fish and Wildlife Conservation Commission Projects. NOTE 9: Reclassification Certain amounts in the prior year have been reclassified to make the statements comparable. 14

17 SUPPLEMENTARY INFORMATION

18 WILDLIFE FOUNDATION OF FLORIDA, INC. SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE For the Year Ended June 30, 2009 Contract State Agency CFSA Number Expenditures Florida Department of Highway Safety and Motor Vehicles Conserve Wildlife License Plate Project None $ 477,582 Discover Florida's Oceans License Plate Project None 63,414 Protect Florida Springs License Plate Project None 45,625 Total Expenditures of State Financial Assistance $ 586,621 BASIS OF PRESENTATION The Schedule of Expenditures of State Financial Assistance includes the state financial assistance activity of Wildlife Foundation of Florida, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Chapter , Rules of the Auditor General. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 16

19 REPORT REQUIRED UNDER GOVERNMENTAL AUDITING STANDARDS AND CHAPTER , RULES OF THE AUDITOR GENERAL

20 LANIGAN & ASSOCIATES, P.C. CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT CONSULTANTS 314 Gordon Avenue Thomasville, GA (229) Facsimile: (229) Centennial Place, Suite 1 Tallahassee, FL (850) Facsimile: (850) tallahassee@lanigancpa.com 3108 Piedmont Road, Suite 105 Atlanta, GA (404) lanigan@lanigancpa.com REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS To the Board of Directors Wildlife Foundation of Florida, Inc. Tallahassee, Florida We have audited the financial statements of Wildlife Foundation of Florida, Inc. (a nonprofit organization) as of and for the year ended June 30, 2009, and have issued our report thereon dated September 4, 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 Governmental Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered Wildlife Foundation of Florida, Inc. s internal control over financial reporting as a basis for designing our audit procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on effectiveness of the Wildlife Foundation of Florida, Inc. s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Organization s internal control over financial reporting. 18

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22 LANIGAN & ASSOCIATES, P.C. CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT CONSULTANTS 314 Gordon Avenue Thomasville, GA (229) Facsimile: (229) Centennial Place, Suite 1 Tallahassee, FL (850) Facsimile: (850) tallahassee@lanigancpa.com 3108 Piedmont Road, Suite 105 Atlanta, GA (404) lanigan@lanigancpa.com REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR STATE PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH CHAPTER , RULES OF THE AUDITOR GENERAL To the Board of Directors Wildlife Foundation of Florida, Inc. Tallahassee, Florida Compliance We have audited the compliance of Wildlife Foundation of Florida, Inc. (a nonprofit organization) with the types of compliance requirements described in the Executive Office of the Governor s State Projects Compliance Supplement that are applicable to each of its major state projects for the year ended June 30, Wildlife Foundation of Florida, Inc. s major state projects are identified in the summary of auditor s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major state projects is the responsibility of Wildlife Foundation of Florida, Inc. s management. Our responsibility is to express and opinion on Wildlife Foundation of Florida, Inc. s compliance based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter , Rules of the Auditor General. Those standards and Chapter , Rules of the Auditor General, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major state project occurred. An audit includes examining, on a test basis, evidence about Wildlife Foundation of Florida, Inc. s compliance with those requirements and performing such other procedures as we consider necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Wildlife Foundation of Florida, Inc. s compliance with those requirements. 20

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24 WILDLIFE FOUNDATION OF FLORIDA, INC. SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2009 SECTION 1 - SUMMARY OF AUDIT RESULTS 1. Type of Audit Report issued on the Financial Statements: Unqualified 2. Significant Deficiencies and/or Material Weaknesses in Internal Control: Audit disclosed no instances of significant deficiencies and/or material weaknesses in internal control. 3. Noncompliance Material to Audited Financial Statements: Audit disclosed no material instances of noncompliance. 4. Significant Deficiencies and/or Material Weaknesses in Internal Control Over the Major State Project: Audit disclosed no significant deficiencies and/or material weaknesses in internal control over major state project. 5. Type of Audit Report Issued on Compliance with Requirements Applicable to the Major State Project: Unqualified Opinion 6. Audit Findings Relative to the Major State Project: The audit disclosed no findings required to be reported under Major State Projects. 7. Major State Projects: State Project State CFSA No. Conserve Wildlife License Plate Threshold: The threshold for distinguishing Type A or Type B programs was $175,986 for state financial assistance. 9. Auditee Risk Assessment: The Organization qualified as a low risk auditee. 22

25 WILDLIFE FOUNDATION OF FLORIDA, INC. SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended June 30, 2009 SECTION II FINANCIAL STATEMENT FINDINGS No matters noted. SECTION III STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED COSTS No matters noted. SECTION IV PRIOR YEAR AUDIT FINDINGS Status: Segregation of Duties It is important for an entity to segregate the authorization of transactions, recording of transactions, and custody of assets. Independent performance of each of these functions reduces the opportunity for any one person to be in a position to carry out and conceal errors or irregularities in the normal course of their duties. We believe the CFO s normal duties involve more than one of the functions described above. Recommendation We understand that the size of the Organization s staff may preclude certain internal controls that would be preferred if the office staff were larger. However, we believe that the Organization should segregate as many duties as possible. Further, we recommend the Organization review all other mitigating controls to identify any improvements that might be made. Corrective action has been taken by the Organization. 23

26 LANIGAN & ASSOCIATES, P.C. CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT CONSULTANTS Bernard Lanigan ( ) 314 Gordon Avenue Bernard Lanigan, Jr., CPA Please reply to: Thomasville, GA Franklin J. Mercer, CPA, CFP Tallahassee (229) Robert M. Milberg, CPA Facsimile: (229) C. Bradford Jackson, CPA, CFA Writer's Direct Dial (850) Ext: D. Mark Fletcher, CPA Direct G. Thomas Harrison, Jr., CPA, CFP 2630 Centennial Place, Suite 1 Tallahassee, FL September 4, 2009 (850) Donna N. Reetz, CPA Facsimile: (850) Mark Saussy, CPA, CFP tallahassee@lanigancpa.com Glenn Townsend, CPA John Keillor, CPA 3343 Peachtree Road, NE Sherri Rayburn, CPA Suite 225 Joshua Sharp, CPA Atlanta, GA Michael O. Sills, Jr., CPA (404) lanigan@lanigancpa.com Mr. Brett Boston, Executive Director Wildlife Foundation of Florida, Inc. P O Box Tallahassee, Florida Dear Mr. Boston: RE: Wildlife Foundation of Florida, Inc. Management Letter In planning and performing our audit of the financial statements of Wildlife Foundation of Florida, Inc. for the year ended June 30, 2009, we became aware of several ideas and suggestions that should be considered by management for further study and could possibly enhance and strengthen the internal control operations. Only after additional study and research should the following suggestions be implemented as our engagement did not allow us the time to fully investigate and study these suggestions. During the prior year the following suggestions were made: (Prior Year) Disbursements The Foundation s process for the payment invoices under $5,000 does not include proper segregation of duties. The same individual prepares, approves, records and mails/distributes the payment of invoices less than $5,000. For invoices greater than $5,000 a second approval is required and indicated by initialing the check stub or invoice. Recommendation - The Foundation should have a member of management (i.e. Executive Director or member of the Board of Directors) review and approve all disbursements. This review and approval process would assist in the safeguarding of assets and mitigate risks associated with the limitations presented regarding segregation of duties. Status The Foundation has implemented new process which requires a designee of FWC s Finance and Budget Office to review and sign all disbursements prepared. Based on tests performed during this audit, this new process has been implemented and is being followed. MEMBERS OF: THE AMERICAN INSITUTE OF CPA'S PRIVATE COMPANIES PRACTICE SECTION THE GEORGIA SOCIETY OF CPA'S, THE FLORIDA INSTITUTE OF CPA'S

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