BATON ROUGE SICKLE CELL ANEMIA FOUNDATION, INC. FOR THE YEAR ENDED DECEMBER 31, 2006

Transcription

1 RECEIVED LEGISLATE AUDITOR 2007KAR27 AM 10: 55 BATON ROUGE SICKLE CELL ANEMIA FOUNDATION, INC. FOR THE YEAR ENDED DECEMBER 31, Mll.l*U U,., -,.w vincff appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative satve Auditor Auditor and, and, where oarich ^-<- ~ c where appropriate, at the office of the parish cferk of court.

2 TABLE OF CONTENTS Independent Auditor's Report 3 Financial Statements Statement of Financial Position 4 Statement of Activities 5 Statement of Functional Expenses 6 Statement of Cash Flows 7 Notes to Financial Statements 8 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed In Accordance with Government Auditing Standards 13 Prior Year's Findings and Status 15 Schedule of Current Year's Findings 16 Page

3 C. DeVitte Mcmber Member */ JfmftlA I 7 )p\/lllt> American Insitute CPAs Z^Xl/f lulu W» JL-S& V lli& Louisiana Society CPAs 7829 BLUEBONNET BLVD. BATON ROUGE, LA (225) INDEPENDENT AUDITOR'S REPORT March 2, 2007 Members of the Board of Directors Baton Rouge Sickle Cell Anemia Foundation, Inc. Baton Rouge, Louisiana I have audited the accompanying statement of financial position of the Baton Rouge Sickle Cell Anemia Foundation, Inc. (a non-profit organization) as of December 31, 2006, and the related statements of activities, cash flows and functional expenses for the year then ended. These financial statements are the responsibility of the Baton Rouge Sickle Cell Anemia Foundation, Inc.'s management. My responsibility is to express an opinion of these financial statements based on my audit. I conducted my 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 I 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. I believe that my audit provided a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Baton Rouge Sickle Cell Anemia Foundation, Inc. as of December 31, 2006, and the changes in net assets and its 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, I have also issued a report dated March 2, 2007, on our consideration of Baton Rouge Sickle Cell Anemia Foundation, Inc.'s internal control over financial reporting and our tests of its compliance with laws and regulations. That report is an integral part of an audit performed in accordance with Governmental Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

4 STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2006 ASSETS Cash Accounts Receivable $42, Fixed Assets, Net 14,186 TOTAL ASSETS 57,008 LIABILITIES AND NET ASSETS LIABILITIES: Accounts Payable $852 TOTAL LIABILITIES 852 NET ASSETS: Unrestricted: Undesignated 56,156 TOTAL LIABILITIES & NET ASSETS 57,008 The accompanying notes are an integral part of this statement. 4

5 STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2006 REVENUE: Contributions $50,456 Government Grants 37,125 Other Grants 24,000 Special Events 26,331 Memorial 50 In Kind Revenue 4,912 Other 200 Total Revenue Collected 143,074 EXPENSES: Program Services 91,812 Management & General 43,798 TOTAL EXPENSES 135,610 INCREASE IN NET ASSETS 7,464 NET ASSETS, Beginning of Year 49,544 NET ASSETS, End of Year 57,008 The accompanying notes are an integral part of this statement. 5

6 STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED TO DECEMBER 31, 2006 PROGRAM SERVICES MANAGEMENT & GENERAL TOTAL Payroll Payroll Taxes Accounting and Legal Advertising Bank Charges Depreciation Dues Equipment Expense Insurance Meetings Miscellaneous Occupancy Postage and Shipping Printing Repair Supplies Special Events Expense Telephone Travel Tobacco Free Grant Program Services $37, 548 2, 591 1, , , 112 3, 930 4, , , 377 2, , , 731 $25, 032 1, 727 1, , , 408 2, 620 3, , , 250 1, $62,580 4,318 2, , ,520 6,550 8, ,980 1,187 5,627 3, ,369 21,731 TOTAL EXPENSES 91, , ,610 The accompanying notes are an integral part of this statement. 6

7 STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2006 CASH FLOWS FROM OPERATING ACTIVITIES: Increase In Net Assets $7,464 Adjustments To Reconcile Increase In Net Assets To Net Cash Provided By Operating Activities: Depreciation 794 (Increase) Decrease In Operating Assets: Accounts Receivable (463) Increase (Decrease) In Operating Liabilities: Accounts Payable 852 NET CASH PROVIDED BY OPERATING ACTIVITIES 8,647 CASH FLOWS FROM INVESTING ACTIVITIES; Purchase of Equipment (3,151) NET INCREASES (DECREASE) IN CASH AND CASH EQUIVALENTS 5,496 CASH AND CASH EQUIVALENTS, Beginning of Year 36,863 CASH AND CASH EQUIVALENTS, End of Year 42,359 The accompanying notes are an integral part of this statement. 7

8 NOTES TO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2006 NOTE #1. NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Baton Rouge Sickle Cell Anemia Foundation, Inc. (Organization) is a Louisiana non-profit organization who is in continuous need of support from the community because of the continued efforts for research, medical assistance for those who are affected by the disease, and for community awareness and education. BASIS OF PRESENTATION The financial statements are presented in accordance with Statement of Financial Accounting Standards No. 116 (SFAS No. 116), "Accounting for Contributions Received and Contributions Made" and Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. SFAS No. 116 requires contributions to be recognized as revenue when they are received or unconditionally pledged. SFAS No. 117, which eliminates the utilization of fund accounting for financial reporting purposes, requires net assets to be classified as either 1) unrestricted, 2) temporarily restricted, or 3) permanently restricted depending on limitations placed on the net assets. CONTRIBUTIONS All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are designated for future periods or restricted by the donor for specific purposes are reported as temporarily restricted or permanently restricted support that increases those net asset classes. When a temporary restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. The Organization has no temporarily or permanently restricted net assets. INCOME TAXES The Organization is a not-for-profit organization that is exempt from income taxes under section 501(c) (3) of the Internal Revenue Code and therefore has not made any provision for federal income taxes in the income taxes in the accompanying financial statements. In addition, the organization has been determined by the Internal Revenue Service not to be a "private foundation" within the meaning of Section 509 (a) of the Internal Revenue Code. The Organization had no unrelated business income. USE OF ESTIMATES; The preparation of financial statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 8

9 NOTES TO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2006 REVENUE RECOGNITION; Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions. All donor-restricted contributions are reported as increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. CONTRIBUTED SERVICES; The organization receives a substantial amount of services donated. No amounts have been reflected in the financial statements for those services since they do not meet the criteria for recognition under SFAS No. 116, Accounting for Contributions Received and Contributions Made. CASH EQUIVALENTS; Cash equivalents consist of short-term, highly liquid investments which are readily convertible into cash within ninety (90) days of purchase. PREPAID: Insurance and similar services which extend over more than one accounting period have been recorded as expense. FIXED ASSETS; Acquisitions of property and equipment in excess of $500 are capitalized. Property and equipment are carried at cost or if donated, at the approximate fair value at the date of donation. Depreciation has not been computed. CONCENTRATION OF SUPPORT During the year the Organization derived approximately 25% of its revenue from State grants. NOTE #2. CONCENTRATION OF CREDIT RISK FOR CASH HELD IN BANK The Organization maintains a bank account at two financial institutions. Accounts at an institution are insured by the Federal Deposit Insurance Corporation (FDIC) up to $100,000. Cash at these institutions did not exceed the Federally insured limits.

10 NOTES TO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2006 NOTE #3. FIXED ASSETS A summary of Fixed Assets at year end is as follows: ACCUMULATED BOOK COST DEPRECIATION VALUE Land $5,750 $-0- $5,750 Building 27,000 27, Building Improvements 44,469 38,882 5,587 Equipment 39,108 36,259 2,849 Total 116, ,141 14,186 NOTE #4. JUDGEMENTS, CLAIMS AND SIMILAR CONTINGENCIES As of December 31, 2006, there was no litigation pending against the Baton Rouge Sickle Cell Foundation, nor was the Organizatio aware of any unasserted claims. No claims or litigation costs were incurred in the current year. NOTE #5. BOARD OF DIRECTORS' COMPENSATION The Board of Directors are a voluntary board; therefore, no compensation has been paid to any member. NOTE #6. ECONOMIC DEPENDENCY The Organization receives a large portion of its revenues from funds provided through payments administered by the Department of Health And Hospitals. If significant budget cuts are made at the state level the amount of funds the Organization receives could be reduced significantly and have a impact on its operations. Management is not aware of any actions that will adversely effect the amount of funds the Organization will receive in the next year. 10

11 NOTES TO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2006 NOTE #7. CONTINGENCIES The Organization received a portion of its revenues from government grants and contracts, all of which are subject to audit by the governments. The ultimate determination of amounts received under these programs generally is based upon allowable cost reported to and are subject to audit by the government. Until such audits, if any, there exists a contingency to refund any amount received in excess of allowable cost. Management is of the opinion that no material liability will result from such audits. NOTE #8 - RISK MANAGEMENT The Organization is exposed to various risks of loss related to torts; thefts of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Organization has purchased commercial insurance to cover or reduce the risk of loss that might arise should one of these incidents occur. There have been no significant reductions in coverage for the prior year. No settlements were made during the year that exceeded the Organization's coverages. The Organization's management has not purchased commercial insurance or made provision to cover or reduce the risk of loss, as a result of business interruption and certain acts of God, like floods or earthquakes. 11

12 SUPPLEMENTAL INFORMATION 12

13 Donald C. DeVi Member American Insitute CPAs.Z^l/fH*I4/ W* JL*'*' V»tf>P Louisiana Society CPAs 7829 BLUEBONNET BLVD. BATON ROUGE, LA (225) REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS March 2, 2007 Members of the Board of Directors Baton Rouge Sickle Cell Anemia Foundation, Inc. Baton Rouge, Louisiana I have audited the financial statements of the governmental activities of Baton Rouge Sickle Cell Anemia Foundation, Inc. as of and for the year ended December 31, 2006, which comprise the Baton Rouge Sickle Cell Anemia Foundation, Inc.'s basic financial statements and have issued my report thereon dated March 2, I conducted my audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. COMPLIANCE As part of obtaining reasonable assurance about whether Baton Rouge Sickle Cell Anemia Foundation, Inc.'s financial statements are free of material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, 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 my audit and, accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance that is required to be reported under Government Auditing Standards. INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing my audit, I considered Baton Rouge Sickle Cell Anemia Foundation, Inc.'s internal control over financial reporting in order to determine my auditing procedures for the purpose of expressing my opinion on the financial statements and not to provide assurance on the internal control over financial reporting. My consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be material weaknesses. 13

14 A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. I noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended for the information of the management, and federal awarding agencies and pass-through entities. However, this report is a matter of public record and distribution is not limited. Under Louisiana Revised Statutes 24:513, this report is distributed by the Legislative Auditor as a public document. 14

15 SCHEDULE OF PRIOR YEARS FINDINGS YEAR ENDED DECEMBER 31, 2006 FISCAL YEAR CORRECTIVE FINDING CORRECTIVE ACTION/PARTIAL REF INITIALLY ACTION TAKEN CORRECTIVE NO. OCCURRED DESCRIPTION OF FINDING (YES,NO,PARTIALLY) ACTION TAKEN None 15

16 BATON ROUGE SICKLE CELL ANEMIA FOUNDATION, INC, SCHEDULE OF CURRENT YEARS FINDINGS DECEMBER 31, 2006 NONE 16