otherthanthepreparer.theproject

Transcription

1 SUMARYSCHEDULEOFPRIORAUDITFINDINGS 4. Thepersonenteringacountspayableinto (continued) thecomputershouldberesponsiblefor tagingfixedasetsbeforethepo/dvis enteredintothecomputer.thefinancial oficershouldverifythatnewfixed asetsaretagedaspartofthereview ofthemonthlyfinancialstatements.the fixedasetsubledgershouldbeupdated monthlyandreconciledtothegeneral ledger.aphysicalinventoryshouldbe takenonoraboutjune30eachyear. GOEAshouldbesentacopyofthefixed 5. asetsubledger. Alreportstograntorandfunding agenciesshouldbereviewedbysomeone otherthanthepreparer.theproject CareandRSVPreportsshouldbeamended CurentStatus: becausetheerorsafectfutureperiods. Alrecomendationswereimplemented.No aditionalauditorfindingswerenoted 196FindinqNo.3(Daqe6-67FV96reDort~: duringthefy97auditinthisarea. InstancesofNoncomplianceWereNotedRelatinqtotheRSVProqram Conditions: i. TheCouncilshouldhavesubmitedtoGOEA afinalreportofrsvpexpenditures within45daysofthecloseofthegrant 2.3. year.noreportwasubmited. Severalreportsweresubmitedlateto TheCorporationforNationaland ComunityService. AmountsreportedtoTheCorporationfor NationalandComunityServicewerenot corectforthedecember31,195andthe June30,196reports. 59

2 SUMARYSCHEDULEOFPRIORAUDITFINDINGS RELATIVETOFEDERALAWARDSPROGRAMS 4.Thecurentsystemoffixedaset (continued) managementistotagfixedasetswhen received,althoughthisisnotdoneona consistentbasis.aphysicalinventory offixedasetswasperformedbutthe resultswerenotreconciledtotheboks. Afinalistofixedasetshasnotben submitedtogoea.thefixedaset subledgerwasnotupdatednorreconciled 5.(A)ProjectCarereportscontainerors. priortotheaudit. (B)ReportstoGOEAcontainerors. (C)ReportstoTheCorporationfor NationalandComunityService Recomendations: Theseexamplesoffailuretoperformtasks containederors. thatarepartoftheinternalcontrol structurecanbecuredbypropersupervision andfolow-up. i. Therewerenorecomendationsforfinding #1becausethisacountwasclosedand alotherbankacountswereproperly 2 reconciled. Thepayrolacountantshouldnotenter timeinformationfromtimeshetsunles thesupervisorhasaprovedthem.if thisisunavoidablebecauseofthe demandsofgetingouthepayrol,the employe'scheckshouldnotbereleased 3. untilthetimeshethasbenaproved. Thepayrolacountantshouldreviewal personelfilestoinsuretheycomply withfederalawandcouncilpolicy.the acountingsupervisorshouldverifythat payrolfilesareproperlymaintained through"spotchecks". 58

3 2. TheCouncil'sacountingsoftware (continued) includesanacountsreceivablemodule thatisnotbeingused.theauditor recomendedthecouncilbeginusingthis moduletoproperlyrecordandmonitorits receivables.inadition,theauditor recomendedpeoplebeasignedspecific responsibilitiesintheprocesof biling,recording,colecting,and reconcilingthetransactionsrelatingto theservicesmentionedabovetoeliminate CurentStatus: i. controlweakneses. TheCounciladoptedthealternative recomendationunderwhichthecompliance oficerhascontroloftheruberstamp andboththefinancialoficerandthe complianceoficerreviewandinitial 2. suportingdocumentation. Monitoringofacountsreceivable improvedinfy97buttherewerestil someunresolvedweaknesesinthisarea. Thebalancesofeightreceivableswere corectedwithauditadjustments. However,thetotaloftheseadjustments wasnotmaterialtothefinancial statementsasawhole.thecouncilbegan usingtheacountsreceivablemodulein 196FindingNO.2Coa~e63-67Fv96report): FY98. ThereisEvidenceofFailuretoPerformTasksThatAreaPartof the~nternalcontrolstructure Condition: i. 2. sucesfulyreconciled. Intheauditor'sdetailedtestof payrol,thereweretwoinstanceswhere thesupervisor'signaturewasnotonthe 3.Thepayrolacounthadnotben subordinateemploye'stimeshet. Intheauditor'stestofpersonelfiles, therewereinstancesfoundwherei-9 formswerenotproperlyfiledout,which 57

4 EastBatonRougeCouncilonAging,Inc. BatonRouge,Louisiana June30,197 DEPARTMENTOFHEALTHANDHUMANSERVICES-ADMINISTRATIONONAGING 196FindinaNo.1(Dae61-63Fv96report): ThereAreS~tnatlonsWheretheDesianoftheInternalControl StructureisInadeauate Condition: I. PO/DVsareenteredintothepayables systemandcomputerchecksareprocesed formostdisbursements.thechecksare "signed"usingadouble-signatureruber stamp.theruberstampisunderthe controlofthefinancialoficer.the useoftheruberstampeliminatesthe benefitsofthedouble-signature requirement.sincethefinancialoficer canaprovepo/dvs,makejournalentries totheacountingsystem,preparethe bankstatementreconciliation,andhas controlofthesignaturestamp,thereis 2. alackofsegregationofduties. TheCouncilacksanadequatesystemto Recomendation: i. monitoracountsreceivable. Checksshouldnotbereleaseduntilthe checkandtheunderlyingdocumentationis reviewedbytworesponsiblepeople,at leastoneofwhomisindependentofthe acountingfunction.thebestmethodis toeliminatetheruberstampandrequire twomanualsignatures.analternativeis tohavetheruberstampunderthe controlofthecomplianceoficerandto haveboththeacountingoficerandthe complianceoficereviewandinitialthe suportingdocumentation.thechief executiveoficershouldreviewand checksnedtobeisuedwhenthe initialthesuportingdocumentationif complianceoficerorthefinanceoficer isunavailable. 56

5 EastBatonRougeCouncilonAging,Inc. BatonRouge,Louisiana Tothefolowingoversightagenciesforaudit: June30,197 Federal:U.S.DepartmentofHealthandHumanServices- State:LegislativeAuditoroftheStateofLouisiana;and AdministrationonAging. EastBatonRougeCouncilonAging,Inc.,BatonRouge,Louisiana, Governor'soficeofElderlyAfairs. respectfulysubmitsthefolowingcorectiveactionplanforthe yearendedjune30,197. Nameandadresofindependentpublicacountingfirm:NeilG. Ferari,CPA,1481OldHamondHighway,suite4,BatonRouge, Louisiana, Auditperiod:FortheyearendedJune30,197. 5

6 7.Theprogramstestedasmajorprogramsareasfolows: (continued) U.S.DepartmentofHealthandHumanServices- AdministrationonAging: SpecialProgramsfortheAging: TitleI,PartB-GrantsforSuportiveServicesand SeniorCenters;CFDA#93.04 TitleI,PartC-I-NutritionServices-Congregate Meals;CFDA#93,045 TitleI,PartC-2-NutritionServices-Home DeliveredMeals;CFDA# TitleI,PartD-In-HomeServicesforFrailOlder Individuals;CFDA#93.046,and TitleI,PartF-DiseasePreventionandHealth 8. ThethresholdfordistinguishingTypesAandBprogramswas PromotionServices;CFDA# EastBatonRougeCouncilonAging,Inc.wasnotdetermined $30,0. B.FINDINGS-FINANCIALSTATEMENTSAUDIT tobealow-riskaudite. Therewerenofindingsthatarerequiredtobereportedinthis C.FINDINGSANDQUESTIONEDCOSTS-MAJORFEDERALAWARDPROGRAMS sectionofthereport. AUDIT Therearenofindingsthatarerequiredtobereportedinthis sectionofthereport. 54

7 SCHEDULEOFINDINGSANDOUESTIONEDCOSTS EastBatonRougeCouncilonAging,Inc. BatonRouge,Louisiana A.SUMARYOFAUDITRESULTS June30,197 i.theauditor'sreportexpresesanunqualifiedopiniononthe general-purposefinancialstatementsoftheeastbatonrouge 2.Nointernalcontrolmatersrelatingtotheauditofthe CouncilonAging,Inc. the ial nts 3.NoinstancesofnoncompliancematerialtothegeneralpurposefinancialstatementsoftheEastBatonRougeCouncil s.i! 4.Nointernalcontrolmatersrelatingtotheauditofthe onaging,inc.werediscloseduringtheaudit. majorfederalawardprogramsarereportedinthe"reporton ComplianceWithRequirementsAplicabletoEachMajor ProgramandInternalControlOverComplianceinAcordance 5.Theauditor'sreportoncomplianceforthemajorfederal WithOMBCircularA-13." awardprogramsfortheeastbatonrougecouncilonaging, 6.Auditfindingsrelativetothemajorfederalawardprograms Inc.expresesanunqualifiedopinion. fortheeastbatonrougecouncilonaging,inc.arereported inpartcofthisschedule. 53

8 Schedule6 FortheGrantYearEndedDecember31,196 EastBatonRougeCouncilonAging,Inc. BatonRouge,Louisiana CostsIncuredForRSVPWereAsFolows: VolunterSuport Actual VolunterExpense $56,91 Actual% Totalcostsincured 15, % 72, % $54,906 Budget Budqet% 17, % $72, % Costspaidwithlocalmatch Costsremainingtobepaidwith TheCorporationforNationaland ComunityServiceandGOEAFunds (6,273) CostspaidforwithGOEA(State) $6,27 CostspaidwithfundsfromThe CorporationforNationaland fundsreceived $20,2 ComunityService $6,27 46m05 = 52

9 SCHEDULEOFEXPENDITUESOFEDERALAWARDS Schedule5 EastBatonRougeCouncilonAging,Inc. BatonRouge,Louisiana FEDERALGRANTOR/PAS-THROUGHGRANTORS/ PROGRAMTITLE FEDERAL FortheyearendedJune30,1g07 TheCorporationforNationalandComunity D~rectPrograms: Service NUMBERGRANT CFDA GRANTPROEM ENDEDAMOUNT YEARORAWARD RECOGNIZEDEXPENDq'RJRES REVENUEFEDERAL RetiredSeniorVolunterProgram(RSVP) SubtotaJCFDA# W021/ W021/t /31/96$46,05$ 12/3t/9747.t85 TotalsfurTheCorporationforNationaland U.S.DepartmentofHealthandHumanServices-Ad~'ninistrationonAging ComunityService 93, $24,02 16,314 16, t90 40, O,36 40,36 PasedthroughtheGovernorsOficeo1EldertyAfairs: Speci~JProgramsfortheAging: Titlelit,partB-Gre,ntfor Titlelit.PartC-AreaAgencyAdministration Titleil,PartC-1-NutritionServices- SuportiveServicesandSeniorCenters CongregateMeals t78281 TitleI,PartC-2-NutritionServices HomeDeliveredMeals SubtotaJCFDA# N/AN/AN/AN/A 06/30/g7 165,068 56, , Tr8eI.PartD-In-HomeServices ,86 165,068 4, ,721 58, TitleIF-DiseasePreventionand furfrailolderindividuals TotalsforU.S.DepartmentofHealth andhealthpromotionservices N/A 05/30/ /30/0710,748 5,6 U.S.DepartmentofAgdcuSure andhumanservices ,416 PasedthroughtheGovernor'sOficeofEldertyAfairs: SubtotalCFDA# NutritionProgramfortheElderly(I) N/AN/A o6130/ /96 150,0 15~.837 Totalfederalgrants 308, g14-106,914 5g,85 $858,43$605,6$65,51 16,70g (1)Therewere$59.85ofundsearnedbutnotspentundertheFY96award.ThesefundswerecariedovertoFYg7andspenthisyear NoteA-Basis01Acounting-TheacompanyingScheduleofExpendituresofFederalAwardshasbenpreparedusingthemodified NoteB-TheEastBatonRougeCouncilonAging,Inc.didnotpas-throughanyofitsfederalawardstoasubrecepientduring acuralbasisofacountingascontemplatedundergeneralyaceptedacountingprinciplesandwhichisthesamebasis ofacoutingusedfurpresentingtheganeralpurposefinancialstatements. NoteC-Notederalawardswerexpendedintheformofnon-cashasistancedudngtheJiscalyea." thefiscalyear.

10 Generalfixedasets G SETSANDCHANGE EastBatonCouncilonAging,Inc. BatonRouge,Louisiana FortheyearendedJune30,197 Vehicles Oficefurnitureandequipment Computersoftware Nutritionequipment Leaseholdimprovements Capitaleases Land Schedule4 Balance Balance June30, June30, 196AditionsDeletions197 $61, ,607 18,560 65,271 78, ,532 69,0 Totalgeneralfixedasets $639,595$4,351$-$683,946 Investmentingeneralfixedasets Propertyacquiredwith fundsfrom- Generalfundsand localdonations TitleI-BAdministration TitleI-BSuportiveServices RSVP DisasterAsistance PCOA TitleIC-I TitleIC-2 TitleIF Fundinginformationotmaintained toidentifyfixedasetsacquired before In-kindfromthegeneralpublic $38,956$ 17,383 7,290. 5,395 17,383 82,685 Totalinvestmentsingeneral fixedasets $639,595$4,351$ $683,946 50

11 Schedule3 continued JITLEIF Budget Actual Salaries(*) Fringe(*) Travel(*) Operatingservices Operatingsuplies(*) Othercosts(*) Fulservice Meals $80 Capitaloutlay i (Unfavorable_[ Variance- Favorable $(17( TotalTitleIlF $85,639$107,128 $(21,489) U.S.D.A. TransferstoTitleIC-i TransferstoTitleIC-2 TotalU.S.D.A $68,60 AUDITFUND $137,923$16,79 69,263$7,952 8,847 $(9,292) $(28,876) ~19,584) = Operatingservices TotalAuditFund(*) $8,524$2,14 8,524~2,14 $(13,620) SENIORCENTER ~ = $(13,620) ~=~= Salaries(*) Fringe TransferstoTitleIlB TransferstoTitleID TransferstoTitleIF TotalSeniorCenter $192,670$193,458 $(78) ~ = *)Actualcostsexcedbudgetedcostsbymorethan10%.However,transfersweremade fromthegeneralfundtopayforthexcesexpenditures. 49

12 Schedule3 continued Budqet Actual FITLEIC-I Salaries Fulservice Meals: $ i5 19$219 (Unfavorable) Variance- Favorable $( (2 896 ( Capitaloutlay Rawfod Non-edibles 154,940 32,30 149,58 29,615 5,382 2,715 TotalTitleIlC-I $484,412$49,430 $(15,018) TITLEIC-2 Salaries Fringe Travel(*) operatingservices Operatingsuplies(* Othercosts Fulservice Meals: $ $ Ii i Capitaloutlay Rawfod Non-edibles (5,027) (104) TotalTitleIC-2 $297,483$319,824 $(2,341) = TITLEID Salaries Fringe Travel Operatingservices Operatingsuplies Othercosts Fulservice Meals 6, Capitaloutlay TotalTitleID $15,731$7,848 $7,83 *)Actualcostsexcedbudgetedcostsbymorethan10%.However,transfersweremade = fromthegeneralfundtopayforthexcesexpenditures. 48

13 EASTBATONROUGECOUNCILONAGING,INC. Schedule3 SCHEDULEOFEXPENDITURES-BUDGETVSACTUAL-GRANTSPROVIDED BATONROUGE,LOUISIANA THROUGHTHELOUISIANAGOVERNOR'SOFICEOFELDERLYAFAIRS(GOEA) FortheyearendedJune30,197 PCOA-ACT735 Budqet Actual TransfersoutoIB TotalPCOA $56,958 $56,958 (Unfavorable) Variance- Favorable $56,958 TITLEITIBSUPORTIVESERVICES Salaries Fringe Travel 716$261 Operatingservices 282 Operatingsuplies(*) i0 867 $1 Othercosts Fulservice Meals Capitaloutlay $ i i TotalsTitleIESuportiveServices $375,76$358,787 $16,979 TITLEIC-A Salaries Fringe Travel $- Operatingservices Operatingsuplies Othercosts Fulservice Meals Capitaloutlay TotalTitleIC-A $59,689 $59,689 $ (*)Actualcostsexcedsbudgetedcostsbymore fromthegeneralfundtopayforthexces than10%.however,transfersweremade expenditures. 47

14

15 ~ ~~~I~

16

17 43

18 Note2-Chan~einAcountin~PrincipleDeferedCompensation- Exhibit (continued) continued andtheirbeneficiaries.existingplansarerequiredto complywiththerequirementbyjanuaryi,19. Asaresultofthetaxlawchange,theCouncil'sdefered compensationplanwasmodifiedtocomplywiththenewirs requirementsasofseptember24,196.acordingly,as requiredbygovernmentalacountingstandardsboardstatement No.32,"AcountingandFinancialReportingforInternal RevenueCodeSection457DeferedCompensationPlans",the Councilnolongershowstheinvestmentindefered compensationandtheofsetingdepositsandescrowacounts asasetsandliabilitiesonitscombinedbalanceshet. Thisacountingchangehadnoefectonthebeginingfund Note23-SubsequentEvents balanceofthefiscalyear197financialstatements. AsofJune30,197,theCouncilhadbennotifiedbyits Medicareintermediary,PalmetoGovernmentBenefits Administrators(Palmeto),that$10,587hadbenwitheld frompaymentstothecouncil'sgrandeaidprogrambecauseof reportingerorsfrom194.however,thisamountwas includedinthejune30,197,acountsreceivablebecause thecouncilexpectedtoresolvethesereportingquestions. Afteryearend,Palmetomadeanothertentativeadjustmento thedecember31,196,costreportthat,iffinalized,would resultinthecouncilowingmedicare$87,401.acordingly, Palmetobeganwitholdingmoneyforcurentservices providedbythecounciltorepaythisamount. Asa~esultofthesequestionedcosts,theCouncil resubmitedthecostreportsfor194,195,and196.in letersdatednovember13and14,197,palmetoinformedthe Councilthat,afterreviewingthenewcostreports,Medicare actualyowedthecouncil'sgrandeaidprogram$19,823for 194and$35,02for195.Inadition,onNovember20, 197,Palmetoconfirmedthatthetentativeadjustmentfor 196wasremovedandthatalfundswitheldfromcurent servicesduetothisadjustmentwouldberepaid. Ofthe$54,845aditionalreimbursementsfor194and195, onlythe$10,587thatwaswithelduringfiscalyear197is includedinthejune30,197,acountsreceivablebalance. Theremaining$4,258hasnotbenacruedasareceivable becauseitwasnotmeasurablebyandavailabletothecouncil atyearend. 42

19 ExhibitE Note20-RiskManaqement continued TheCouncilisexposedtovariousrisksoflosrelatedto torts;theftsof,damageto,anddestructionofasets; erorsandomisions;injuriestoemployes;andnatural disasters.thecouncilhaspurchasedcomercialinsuranceto coverorreducetheriskoflosthatmightariseshouldone oftheseincidentsocur.nosetlementsweremadeduring Note21-IRCSection125CafeteriaPlan theyearthatexcededthecouncil'sinsurancecoverage. InJanuary,192,theCouncilestablishedanInternalRevenue CodeSection125"cafeteria"planforitsful-time employes.underthisplananeligiblemployecanelecto haveaportionofhis/hercompensationreducedtopayfor personalhealthinsurance,dentalinsurance,and/or disabilityinsurancethatheemployewouldnormalyhaveto paywith"aftertax"compensation.participationinthis Note2-ChanGeinAcountinqPrinciple-DeferedCompensation planisatheoptionofeachful-timemploye. TheCouncilofersitsemployesadeferedcompensationplan createdinacordancewithinternalrevenuecodesection457. Theplanisavailabletoalcouncilemployesandpermits themtodeferaportionoftheirsalaryuntilfutureyears. Participationintheplanisathemploye'soption.The deferedcompensationisnotavailabletoparticipating employesuntiltermination,retirement,deathor unforeseablemergency. Whentheplanwascreated,InternalRevenueCodeSection457 requiredthatalamountsofcompensationdeferedunderthe plan,alpropertyandrightspurchasedwiththoseamounts, andalincomeatributabletothoseamounts,propertyor rightsare(untilpaidormadeavailabletotheemployeor otherbeneficiary)solelythepropertyandrightsofthe CouncilsubjectonlytotheclaimsoftheCouncil'sgeneral creditors.participants'rightsundertheplanwerequalto thoseofthegeneralcreditorsofthecouncilinanamount equaltothefairmarketvalueofthedeferedacountfor eachparticipant. InternalRevenueCodeSection457wasamendedasofAugust 20,196tostatethatnewplanswilnotbeconsidered eligibleplansuntilalasetsandincomeoftheplanare heldintrustforthexclusivebenefitoftheparticipants 41

20 Note18-Judaments~Claims.andSimilarContinaencies -(continued) ExhibitE continued Infiscalyear97,acurentemployesuedtheCouncilasa co-defendantwithlouisianaworkers'compensationcorporation (LWC)forfailuretopaysomeofthemedicalbilsshe incuredduetoanon-the-jobinjury.managementforthe Councilbelievesanyliabilityfortheemploye'smedical bilsisaliabilityoftheinsurancecompanyoftheperson (non-councilemploye)whoinjuredtheplaintifand/orlwc, andthathecounciliswithoutliabilityinthismater. TheCouncilreceivesrevenuesfromvariousfederalandstate grantprogramswhicharesubjectofinalreviewandaproval astoalowabilityofexpendituresbytherespectivegrantor agencies.theseprogramsareauditedinacordancewiththe SinqleAuditActAmendmentsof196.Anysetlements expensesarisingoutofafinalreviewarerecognizedin periodagreduponbytheagencyandthecouncil.also, ismanagement'sopinionthatanyauditsbythegran agencieswouldnotproducedisalowedprogramcosts liabilitiestosuchanextentthattheywouldmateria Note19-EconomicDependency afecthecouncil'sfinancialposition. ortheittotandly TheCouncilreceivesthemajorityofitsrevenuefromfunds providedthroughgrantsadministeredbythegovernor'sofice ofelderlyafairsandquarterlyalocationsfromthecityof BatonRouge,Louisiana.Grantamountsareapropriatedeach yearbythefederal,state,andlocalgovernments.ifbudget cutsaremadeathefederal,stateand/orlocallevel,the amountoffundsthecouncilreceivescouldbereduced significantlyandhaveanadverseimpactonitsoperations. Managementisnotawareofanyactionsthatwiladversely afectheamountoffundsthecouncilwilreceiveinthe nextfiscalyear. 40

21 ExhibitE Note16-In-KindDonations-(continued) continued In-kindfixedasets: 198DodgeVan oficeequipment 4,0 Totalin-kindcapitalasets 1,395 Totalin-kindcontributions $30,679 5,395 TheCouncilreceivedaditionalsuportthroughservices contributedbyvoluntersthatdoesnotmethecriteriafor recognitionundergeneralyaceptedacountingprinciples becausethecouncilwouldnothireaditionalpaidemployes Note17-IncomeTaxStatus toperformtheseservicesifvolunterswerenotavailable. RevenueCodeof1986andasanorganizationthatisnota TheCouncil,anon-profitcorporation,isexemptfromfederal incometaxationundersection501(c)(3)oftheinternal privatefoundationasdefinedinsection509(a)ofthecode. ItisalsoexemptfromLouisianaincometax. TheCouncildoesnotfileaForm90becauseithasben determinedtobean"afiliateofagovernmentalunit"within themeaningofsection4ofrevenueprocedure95-48,195-2 Note18-Judqments.Claims,andSimilarContinqencies C.B.418. OnSeptember8,1989,theCouncilwassuedbyaformer employewhoalegedemploymentdiscriminationbythe Council.DiscoveryresponsesweremadeinJanuary,190,but noactionhasbentakensincethattime.inaseparate mater,onmarch2,193,thecouncilwassuedbyanother formeremployewhoclaimsthatthecouncildefamedherand wrongfulydischargedherfromherjob.thisemployeseks torecoverlostwagesandotherbenefitsasaresultofher claim.managementandtheatorneyforthecouncilbelieve thereisnomeritoeitheroftheaboveclaimsandthatthe Councilwilprevailinitsdefenseoftheselawsuitswithout liability. 39

22 ExhibitE Note15-ardofDirectors" continued TheBoardofDirectorsisavoluntaryboard;therefore,no compensationhasbenpaidtoanymember.however,board membersarereimbursedinacordancewiththestateof Louisiana'stravelreimbursementpolicywhenatending Note16-In-KindDonations metingsonbehalfofthecouncil. TheCouncilreceived$30,679invariousin-kind contributionsduringtheyearwhichavebenvaluedatheir estimatedfairmarketvalueandpresentedinthisreportas revenue.relatedexpenditures,equaltothein-kind revenues,havealsobenpresented,therebyproducingno efectonetincome. Asumaryofthein-kindcontributionsandtheirespective asignedvaluesisasfolows: In-kindservicesandfacilities: TheCouncils'mainoficefacility furnishedbythecityofbatonrou for$i.0peryear.janitorialse andmaintenanceworkersarealsoi health Senior tothe center/mealsitefacilitiesand screningsitesarefurnished Comunityserviceworkersperformservices Councilwithoutcharge. 129,043 inthekitchenforthemealprogramsthat wouldhavetobeperformedbypaid employesifthecomunityserviceworkers werenotavailable. ThecityofBatonRougeprovidespostage 36,941 tothecouncil. 3,276 Otherdonatedservices. 82 Totalin-kindservicesandfacilities$295,284 38

23 ExhibitE Note14-InterfundTransfers continued Operating year197 transferinandoutarelistedbyfundforfiscal asfolows: Operating Transfers GeneralFund: In Operating Transfers Out Local PCOA PublicRelations $ MedicaidWaiver Asesmentsand GrandeMeals 83,80 $210,265 61,895 56,958 CaseManagement SpecialRevenueFunds: Totalgeneralfund 92 48, , ,426 TitleIB TitleIC-I TitleIC-2 TitleID TitleIF U.S.D.A. Audit seniorcenter RSVP 13,620 21, ,79 102,629 Totalspecialrevenuefunds438,157 Totalalfunds $584,854 $584, ,428 37

24 ExhibitE Note12-ODeratinqLeases continued OnSeptemberi,192,theCouncilenteredintoaleasewith thecityofbatonrougeforthebuildingthathousesthe Council'smainoficeat5790FloridaBoulevard,BatonRouge, Louisiana.Thetermsofthisleaserequireanualpayments of$ifortenyears.thecouncilisresponsiblefor utilities,normalrepairsandmaintenance,andliability, fireandcasualtyinsurance. AtJune30,197theCouncilalsohadalong-termleasefor aphotocopymachineasfolows: to Term MonthlyPayment Futureminimumleasepaymentsforthephotocopymachineare $ asfolows: YearEnded June $1,408 Amount Totalrentexpensewas$7,706fortheyearendedJune30, Note13-InterfundLoans 197. BecausetheCounciloperatesmostofitsprogramsundercost reimbursementtypegrants,ithastopayforcostsusingits GeneralFundmoneyandthenrequestreimbursementforthe advancedcostsunderthegrantprograms.suchadvances createshort-terminterfundloans. TheinterfundloansatJune30,197wereasfolows: General DuefromtheUSDAfund Fund Revenue Special Fund- DuetotheGeneralfund $27,630 USDA $27,630 36

25 Notei0-CapitalLeaseObliations o -(continued) ExhibitE continued Alease-purchaseagrementofacopymachineconsisting ofthefolowingterms: Monthly PaymentNumber ofmonths LeaseTerm Imputed Interest $ to % Rate Futureminimumleasepayments,byearandintheagregate, areasfolows: YearEndedJune Amount Totalminimumleasepaymentsremaining$107, Les:Imputedinterest Presentvalueofnetminimum (19,382) leasepaymentsatjune30,197$87,73 Notei-GeneralLona-TermDebt Long-termliabilitiesthatwil fundsareacountedforinthe ofacounts.thefolowingis befinancedfromgovernmental generalong-termdebtacount generalong-termdebtgroup group. asumaryofchangesinthe VestedVacation 07/01/96IncreaseDecrease06/30/97 Balance Balance NotesPayable CapitalLease Leave $64,343 Obligations 17,574 12,782 $12,840$ 13,916 $7,183 $194,69$12,840$38,925 = = 25,09 3,658 = $168,614 87,73 = 35

26 NoteI0-CapitalLeaseObliqations-(continued) ExhibitE continued Alease-purchaseagrementofvoic equipment consistingofthefolowingterms: MonthlyNumber Paymentofmonths LeaseTerm Imputed Interest Rate $ Attheendoftheleaseperiod,thequipmentcanbe to % purchasedfor$i.0. Alease-purchaseagrement equipmentconsistingofthe ofaditionalvoic folowingterms: MonthlyNumber Paymentofmonths LeaseTerm Imputed Interest $ to % Rate Attheendoftheleaseperiod,theequipmentcanbe purchasedfor$i.0. Alease-purchaseagrementofequipmentforthe Council'sAcountabilityPlusystemconsistingofthe folowingterms: MonthlyNumber Paymentofmonths LeaseTerm Imputed Interest $1, to % Rate Atthendoftheleaseperiod,theequipmentcanbe purchasedfor$i.0. 34

27 Note8- Note9- YearEndedJune Amount $3,658 Notei0-CapitalLeaseObliations DuringtheyearendedJune30,197,theCouncilhadthe folowingcapitaleases: Alease-purchaseagrementofaphonesystemconsisting ofthefolowingterms: MonthlyNumber Paymentofmonths LeaseTerm Imputed Interest $ to % Rate 3

28 ExhibitE Note6-PrepaidExDenses continued TheCouncilhasnotelectedtoexpenseamountspaidfor futureservicesuntilthoseservicesareconsumed.thefund balancesinthegovernmentalfundtypeshavebenreserved fortheprepaidexpensesrecordedinthesefundstoreflect theamountoffundbalancenotcurentlyavailablefor expenditures. PrepaidexpensesconsistedofthefolowingatJune30,197: Prepaidinsurance Advancepaymentsoncapital leaseobligations $1,94 $4,04 2,060 Note7-ChanoesinFixedAsets Asumaryofchangesingeneralfixedasetswasasfolows: Balances Vehicles Aditions Adjustments Oficefurniture& Computersoftware Nutritionequipment equipment $61,547 4,0 Deletions and Balances ,607 Leasehold 18,560 Capitalease improvements 65,271 21,580 $65,547 3,270 Land equipment 162,532 78,078 15,16 206,187 21, O,387 78,463 Totals 69,0 162,532 $639,595$4,351 =:=:=::=~: $- ==:=~ $683,946 69,0 Curentyearaditionsinclude$5,395ofin-kind contributionsofixedasets. 32

29 Note4-Investments-(continued) ExhibitE continued 5.Fulycolateralizedcertificatesofdepositisuedby qualifiedcomercialbanksandsavingsandloan asociationslocatedwithinthestateoflouisiana, 6.Fulycolateralizedrepurchaseagrements, 7.Fulycolateralizedinterest-bearingcheckingacounts, and 8.MutualorTrustFundinstitutionswhichareregistered withthesecuritiesandexchangecomisionunderthe SecurityActof193andtheInvestmentActof1940,and whichaveunderlyinginvestmentsconsistingsolelyofand limitedtosecuritiesoftheunitedstatesgovernmentor itsagencies. TheCouncildidnothaveanyfundswhichitconsideredasan investmentforfinancialstatementpresentationpurposesat yearend. Note5-GrantsReceivableandAcountsReceivable GrantsreceivableatJune30,197,consistedof reimbursementsforexpensesincuredorrevenuesearnedunder thefolowingprogram: Proqram U.S.D.A. P_Krovider GOEA Fund Amount SpecialRevenue $27,630 AcountsreceivableatJune30,197forGeneralFund programsconsistedofthefolowing: Program GrandeAid GrandeAid MedicaidWaiver GrandeMeals Asesment/Case Management Local PublicRelations WelnesProgram Total Provider Medicare Medicaid Medicaid N/A 31 N/A N/A N/A N/A Amount $53,639 2,137 1,686 12, ,413 8,310 1,928 $93,496

30 ExhibitE Note3-Cash-(continued) continued presentationpurposesbecauseitisdesignedtobehighly liquidtogivethecouncilimediateacestoitsacount balance.thethirdconsolidatedacountisusedonlyfor payrolpurposes. ThecaryingamountoftheCouncil'scashacountsatJune 30,197was$496,094whereastherelatedbankbalances totaled$58,50.thediferenceintheseamountsrelatesto checkswritenondemandepositacountswhichavenotyet clearedthebankacountsandpetycashof$250.the folowingtableisasumaryofthecouncil'sbankbalances atjune30,197,presentedinthrelevelsofcreditrisk. Balance Bank Category1 Category2 Category3 $i0,0 Total $58,50 48,50 Category1includesbankbalanceswhichareinsuredby federaldepositoryinsuranceorcolateralizedwith securitiesheldbythecounciloritsagentinthecouncil's name. colateralizedwithsecuritiesheldbythepledgingfinancial institution'strustdepartmentoragentinthecouncil's Category2includesbankbalanceswhichare name. uncolateralized,includinganybankbalancethatis colateralizedwithsecuritiesheldbythepledgingfinancial Category3includesbankbalanceswhichare thecouncil'sname. institutionorbyitstrustdepartmentoragentbutnotin Note4-Investments StatestatutesauthorizetheCounciltoinvesttemporarily idlemoniesinthefolowing: i.unitedstatestreasurybonds, 2.UnitedStatesTreasuryNotes, 3.UnitedStatesTreasuryBils, 4.ObligationsofU.S.GovernmentAgencies,includingsuch instrumentsasfederalhomeloanbankbonds,government NationalMortgageAsociationbonds,oravarietyof "FederalFarmCredit"bonds 30

31 ExhibitE Note2-RevenueRecoqnition-Interqovernmental.ProaramService continued Fes,PublicSUPort,SDecialEvents.andMiscelaneous Revenues Intergovernmentalrevenuesarerecordedingovernmentalfunds Interaovernmental asrevenuesintheacountingperiodwhentheybecome susceptibletoacrual,thatis,measurableandavailable alowthecounciltorecognizerevenueunderthegrantaward untilactualcostsareincuredorunitsofserviceare (modifiedacrualbasis).intergovernmentalgrantsdonot provided.however,fundsreceivedfromthecityofbaton Rougearenotsubjectorevenuerecognitionrestrictions. ProgramservicefesarerecognizedwhentheCouncilprovides ProaramServiceFes theservicethatentitlesthecounciltochargetherecipient fortheservicesreceived. Thetimingandamountsofthereceiptsofpublicsuport, PublicSuport,SpecialEvents,andMiscelaneousRevenues predict;therefore,theyarenotsusceptibletoacrualand specialevents,andmiscelaneousrevenuesaredificultto Note3-Cash arerecordedasrevenueintheperiodreceived. TheCouncilmaintainsthreconsolidatedbankacounts.The consolidatedacountsareavailableforusebyalfunds. Theprimarypurposeoftheconsolidatedacountsistoreduce administrativecostsandtofacilitatecashmanagement.the consolidatedacountsalsoalowthosefundswithavailable cashresourcestocoveranynegativecashbalancesinother funds.oneconsolidatedbankacountisanoperating acount,whichisusedtodepositmoniescolectedandpay bils.bankbalancesinexcesof$i0,0inthisacount areautomaticalytransferedintoasecondacount(shortterminvestment)atthebank.theseexcesfundsare investedovernightinunitedstatestreasurynotesand/or bonds.moneyfromtheshort-terminvestmentacountis automaticalytransferedbacktotheoperatingacountwhen checksarepresentedforpayment.theshort-terminvestment acountisincludedincashforfinancialstatement 29

32 ExhibitE Note1-SumaryofSiqnificantAcountinqPolicies continued n.inventory: -(continued) method.inventoryconsistsofodandkitchensuplies whichhavenotbenconsumedasofyearendandof Inventoryisvaluedatcostusingthefirst-in,first-out WelnesPartnersProgram. resourcematerialspurchasedforesaleaspartofthe whichindicatesthattheydonotconstitute"available inventoriesarequalyofsetbyafundbalancereserve Amountsreportedas spendableresources"eventhoughtheyareacomponentof o.prepaidexpenses: netcurentasets. TheCouncilhaselectednotoexpenseamountspaidfor futureservicesuntilthoseservicesareconsumedto complywiththecostreimbursementtermsofgrant agrements.thefundbalancesinthegovernmentalfund typeshavebenreservedfortheprepaidexpensesrecorded inthesefundstoreflectheamountoffundbalancenot p.trademarksandcopyrights: curentlyavailableforexpenditure. TheCouncilonAgingpaid$25,0foruseoftheWelnes Partners'nameand$9,947forthecopyrighttocertain WelnesPartners'materials.Managementhasestimated theusefullifeoftheseasetstobefiveyears. Acordingly,theyarebeingamortizedonastraightline basisoverfiveyears.amortizationexpenseforfy97was q.management'suseofestimates: $3,580. Thepreparationofinancialstatementsinconformitywith generalyaceptedacountingprinciplesrequires managementomakestimatesandasumptionsthatafect certainreportedamountsanddisclosures.acordingly, actualresultsmaydiferfromthosestimates. 28

33 ExhibitE Note1-SumarvofSiqnificantAcountinqPolicies continued k.relatedpartytransactions: -(continued) Anoutsideagencyhaswritenadraftofabokabout fundraisingfornon-profitorganizationsbasedonideas providedbysharonlafleur,thecouncil'schiefexecutive oficer,anddanaspayde,anexecutiveasistant,costs ofwritingthebokwilbepaidbytheeastbatonrouge CouncilonAging,Inc.Thecopyrightothebokwilbe heldbythecouncil,oritsdesigne,andthecouncilwil receivea60%royaltyfromthesaleofanyboks.sharon LaFleurandDanaSpaydewileachreceivea20%royalty. Noroyaltieswerereceivedduringthefiscalyear. SharonLaFleurhasgrantedtheCouncilausufructuaryof her1984lincolnstretchlimousineduringdaytimehourson MondaythroughFridayofeachwek.Inreturnfortheuse ofthisvehicle,thecouncilhasagredtoprovide,atits expense,insurancecoverage,maintenanceandrepairs,and gasolinewhileitisbeingoperatedforthecouncil's purposes. Therewerenothersignificantrelatedpartytransactions i.restrictedasets: duringfiscalyear197. Restrictedasetsrepresentasetswhichhaveben primarilyacquiredthroughdonationswherebythedonorhas placedarestrictiononhowthedonationcanbeusedby thecouncil(i.e.,utilityasistancefunds).restricted asetsareofsetbyacorespondingreservationofthe m.reservationanddesignationsoffundbalances: Council'sfundbalance. TheCouncil"reserves"portionsofitsfundbalance arenotavailableforexpenditurebecauseresources alreadybenexpended(butnotconsumed),ora restrictionhasbenplaced themonlyavailabletometoncertainasetswhich futureobligations. legal that have make Designatedalocationsofundbalancesresultwhenthe Council'smanagementintendstoexpendcertainresources fundbalancesatyearend. inadesignatedmaner.therewerenotanydesignated 27

34 ExhibitE Note1-SumaryofSiqnificantAcountinqPoliciesj.CompensatedAbsences: continued (continued) Fultimeemployesearnvacationleavebeginingwiththe firstfulmonthofemploymentatherateofonedayper month.vacationleaveincreaseswitheachyearof employment,acordingtothefolowingschedule: YearsofEmployment DaysEarned i0andover BeginingJune15,192,nomorethan5daysofvacation leavemaybecariedoverathendofacalendaryear. PriortoJune15,192,anyearnedandunusedvacation leavehadnoexpirationdateastowhenithadtobeused. Paymentofanyvestedvacationleaveismadebythe Counciluponjobterminationofanemployeforany reason. Forgovernmentalfundtypes,theCouncil'sliabilityfor acumulatedunpaidvacationhasbenrecordedinthe generalong-termdebtgroupofacounts.theliability hasbendeterminedusingthenumberofvestedvacation hoursforeachemployemultipliedbytheemployes curentwagerateathendoftheyear.anamountis adedtothistotalforsocialsecurityandmedicare taxes.acruedvacationbenefitswilbepaidfromfuture year'sresourcesandwilberecordedasfundexpenditures inthevariousgovernmentalfundsintheyearinwhich theyarepaid.thecouncil'ssickleavepolicydoesnot provideforthevestingofsickleavewherebyanemploye couldbentitledtopaymentforanyunusedportionupon termination. 26

35 ExhibitE Note1-SumarvofSignificantAcountin~Policies continued g.budgetpolicy:-(continued) -(continued) ~Expenditurescanotlegalyexcedapropriationsonan ~TheprimarybudgetrequirementundertheRSVPprogram's individualfundlevel. grantfromthecorporationfornationalandcomunity Servicesisthattheratioofvolunterexpensesto totalprogramexpensesmustequalorexcedtheratio ~ThecityofBatonRouge,Louisiana,doesnotrequire intheaprovedbudget. thecounciltosubmitabudgettoreceivetheanual alocationoffundsthecouncilreceivesfromit. Hence,thismoneyistotalyunrestrictedastoits ~TheCouncilisnotrequiredbystateorlocalawto use. prepareabudgetforeveryprogramoractivityit conducts.acordingly,somegeneralfundactivities arenotbudgeted,particularlyiftheyaredemedtobe h.totalcolumnsofcombinedstatements-overview: imaterialbymanagement. Totalcolumnsonthecombinedstatements-overvieware captioned"memorandumonly"toindicatethattheyare presentedonlytohelpwithfinancialanalysis.datain thesecolumnsdonotpresentfinancialpositionoresults ofoperationsinconformitywithgeneralyacepted acountingprinciples.neitherisuchdatacomparableto aconsolidation.interfundeliminationshavenotben i.fixedasets: madeintheagregationofthisdata. Alfixedasetsarestatedathistoricalcostor estimatedhistoricalcost,ifactualhistoricalcostis notavailable.donatedfixedasetsarestatedatheir estimatedfairmarketvalueonthedatedonated.no depreciationhasbenprovidedongeneralfixedasets. AsofJune30,197,theCouncilhadrecorded$82,685of donatedfixedasetsinitsfinancialstatements. 25

36 ExhibitE Note1-SumaryofSignificantAcountin~Policies g.budgetpolicy:-(continued) -(continued) continued ~TheCouncil'sfinancial aproposedbudgetand BoardofDirectorsfor andcomplianceoficersprepare thensubmitthebudgettothe TheBoardofDirectorsreviewsandadoptsthebudget aproval. beforejune30ofthecurentyearforthenextyear. TheadoptedcomprehensivebudgetisforwardedtoGOEA foritsaproval. BudgetaryapropriationsforgrantsawardedtheCouncil bygoealapseathendofeachfiscalyear(june30) andatdecember31forthegrantawardfromthe CorporationforNationalandComunityServiceforthe RSVPprogram.Ocasionaly,theCouncilwilreceive aspecialprojectgrantwhichmayoperateonaperiod diferentfromthecouncil'snormalfiscalyearand, therefore,haveaspecifieddatewherethebudgetary apropriationwillapse. Thebudgetispreparedonamodifiedacrualbasis, consistentwiththebasisofacounting,for comparabilityofbudgetedandactualrevenuesand expenditures. Budgetedamountsincludedintheacompanyingfinancial statementsincludetheamendedbudgetamountsas aprovedbythecouncil'sboardofdirectorsandgoea. Oneamendmentwasmadetotheoriginalbudgetduring fiscalyear197. Actualamountsarecomparedtobudgetedamounts periodicalyduringthefiscalyearasamanagement controldevice. TheCouncilmaytransferfundsbetwenlineitemsas oftenasrequiredbutmustobtainprioraprovalfrom thegovernor'soficeofelderlyafairsforfunds receivedundergrantsfromthisstateagency.aspart ofitsgrantawards,goearequiresthecounciltoamend itsbudgetincaseswhereactualcostsforaparticular costcategoryexcedthebudgetedamountbymorethan 10%.Otherwise,thexcescostscouldbelabeledas unauthorizedexpenditures. 24

37 ExhibitE Note1-SumaryofSiqnificantAcountinqPolicies continued e.basisofacounting:-(continued) -(continued) Governmentalandagencyfundsaremaintainedonthe modifiedacrualbasisofacountingwhereinrevenuesare recognizedintheacountingperiodinwhichtheybecome availableandmeasurable.expendituresarerecognizedin theacountingperiodinwhichtheliabilityisincured, ifmeasurable,exceptforthefolowing:(i)principaland interestonlong-termdebtarerecordedwhendue,and(2) claimsandjudgementsandcompensatedabsencesare recordedasexpenditureswhenpaidwithexpendable f.transfersandinterfundloans: availablefinancialresources. Advancesbetwenfundswhicharenotexpectedtoberepaid areacountedforastransfers.inthosecaseswhere repaymentisexpected,theadvancesareclasifiedasdue fromotherfundsorduetootherfundsonthebalance shet.short-terminterfundloansareclasifiedas g.budgetpolicy: interfundreceivables/payables. Forthefiscalyearended thefolowingprocedures whichhasbenpresented financialstatements: June30,197,theCouncilused toderivethebudgetarydata inexhibitscanddofthese ~TheGovernor'sOficeofElderlyAfairs(GOEA)notifies thecouncileachyearastothefundinglevelsforeach program'sgrantaward.goeaawardsfundsusingthe samefiscalyearasthecouncil,exceptforthersvp programawardwhichisonacalendaryear. TheCouncilmayalsoobtaingrantsfromagenciesother thangoeaandthecouncilconsidersthepotential revenuestobeearnedunderthosegrants. ProjectionsaremadeofrevenuesfromtheCityofBaton Rouge,programservicefes,specialevents,public suport,andmiscelaneoussourcesbasedonpastrends anddataavailabletoformexpectationsoffuture revenues. 23

38 ExhibitE Note1-SumaryofSiqnificantAcountingPolicies continued d.acountgroups: -(continued) Anacountgroupisafinancialreportingdevicedesigned toprovideacountabilityforcertainasetsand liabilitiesthatarenotrecordedinthefundsbecause theydonotdirectlyafectnetexpendableavailable financialresources.thefolowingtwoacountgroupsare not"funds". GeneralFixedAsets Thefixedasets(capitaloutlays)usedingovernmental fundtypeoperationsoftheeastbatonrougecouncilon Aging,Inc.areacountedfor(capitalized)inthe GeneralFixedAsetsAcountGroupandarerecordedas expendituresinthegovernmentfundtypeswhen purchased. GeneralLona-TermDebt Long-termliabilitiesexpectedtobefinancedfrom governmentalfundsareacountedforinthegeneral Long-TermDebtAcountGroup.TheGeneralLong-Term DebtAcountGroupshowsonlythemeasurementof financialpositionandisnotinvolvedwithmeasurement ofresultsofoperations.principalandinterest paymentsonlong-termliabilities(bankloansand capitalleaseobligations)areacountedforinthe GeneralFundbecausetheCouncilintendstouse unrestrictedresourcestopaythemandnolegalmandate e.basisofacounting: existstoestablishadebtservicefund. Theacountingandfinancial toafundisdeterminedbyreportingtreatmentaplied governmentalfunds,includingthegeneralandspecial RevenueFunds,areacountedforusingacurentfinancial itsmeasurementfocus.the resourcesmeasurementfocus.withthismeasurementfocus, onlycurentasetsandcurentliabilitiesaregeneraly thesefundspresentincreases(revenuesandother financingsources)andecreases(expendituresandother includedonthebalanceshet.operatingstatementsof uses)inetcurentasets. 2

39 20

40 Notei-SumaryofSianificantAcountinqPoliciesc.FundAcounting:-(continued) (continued) ExhibitE ~SpecialRevenueFunds-(continued) TitleIC-2Fundisusedtoacountforfundswhich TitleIC-2Fund areusedtoprovidenutritional,homedeliveredmeals tohomeboundolderpersons.titleic-2fundsare providedbytheunitedstatesdepartmentofhealthand HumanServices-AdministrationonAgingthroughthe Governor'sOficeofElderlyAfairs,whichinturn "pasesthrough"thefundstothecouncil.duringthe fiscalyearjulyi,196tojune30,197,thecouncil servedabout68,0homedeliveredmeals. TheTitleI-DFundisusedtoacountforfundswhich T~tleI-DFund areusedtoprovidein-homeservicestothefrailand elderlypersonwhoishome-bound,includingin-home suportiveservicesforolderindividualswhoare victimsofalzheimer'sdiseaseandrelateddisorders withneurologicalandorganicbraindysfunction,andto thefamiliesofsuchvictims.titlei-dfundsare providedbytheunitedstatesdepartmentofhealthand HumanServices-AdministrationonAgingthroughthe Governor'sOficeofElderlyAfairs,whichinturn "pasesthrough"thefundstothecouncil. TheTitleI-FFundisusedtoacountforfundsused TitleI-FFund fordiseasepreventionandhealthpromotionactivities orservices,suchas;(i)equipmentandmaterials medicationmanagement,(4)mentalhealth,(5)nutrition (scalestoweighpeople,educationalmaterials,and exerciseequipment),(2)homeinjurycontrol,(3) (asesment/screning,counseling,andeducation).the medicalyunderservedandinwhichtherearealarge lawdirectsthestateagencyadministeringthisprogram to"giveprioritytoareasofthestatewhichare numberofolderindividualswhohavethegreatest economicandsocialned."titlei-ffundsare providedbytheu.s.departmentofhealthandhuman Services-AdministrationonAgingthroughthe Governor'sOficeofElderlyAfairs,whichinturn "pasesthrough"thefundstothecouncil. 19

41 Note1-SumaryofSiqnificantAcountinqPolicies c.fundacounting:-(continued) -(continued) ExhibitE ~SpecialRevenueFunds-(continued) TheTitleI-BSuportiveServicesFundisusedto TitleI-BSuportiveServicesFund acountforfundswhicharetoprovideavarietyof services;suchas,informationandasistance,aces services,in-homeservices,comunityservices,legal asistance,andoutreachforthelderly.titlei-b SuportiveServicesfundsareprovidedbytheUnited StatesDepartmentofHealthandHumanServices- AdministrationonAgingthroughtheGovernor'sofice ofelderlyafairswhichinturn"pasesthrough"the fundstothecouncil. TheTitleI-CAreaAgencyAdministration(A)Fund TitleI-CAreaAaencvAdministration(AIFund isusedtoacountforsomeoftheadministrativecosts asociatedwithoperatingthespecialprogramsforthe Aging.TitleI-Cadministrativefundsareprovided bytheunitedstatesdepartmentofhealthandhuman Services-AdministrationonAgingthroughthe Governor'soficeofElderlyAfairs,whichinturn "pasesthrough"thefundstothecouncil.thesefunds areusedtohelppayforsomeoftheadministrative costsasociatedwiththetitleiandseniorcenter programs. TheTitleIC-IFundisusedtoacountforfunds TitleIC-IFund whichareusedtoprovidenutritional,congregatemeals tothselderlyinstrategicalyloc~t~dcenters.title DepartmentofHealthandHumanServices- AdministrationonAgingthroughtheGovernor'sOfice IC-IfundsareprovidedbytheUnitedStates ofelderlyafairs,whichinturn"pasesthrough"the fundstothecouncil.duringthefiscalyearjulyi, 196toJune30,197,theCouncilservedabout15,0 congregatemeals. 18

42 ExhibitE Note1-SumaryofsiqnificantAcountinqPolicies c.fundacounting:-(continued) -(continued) Thecouncilperformshealthasesmentsandcase AsesmentsandCaseManaement managementservicesforelderlypeopleforcertain corporationsandreceivesafefortheseservices. DuringFY97,theCouncilacquiredaninventoryof WelnesPartners resourcematerialsdesignedtobeusedtoprovide preventivehealthservicestothelderlyasdescribed intitlei,partfoftheolderamericansactof1965 asamendedoctober,192.thecouncilismarketingits servicesandthesematerialstothercouncilsonaging andbusineses. The localtransportationprogramprovides LocalTransPortation(FISH transportationtomedicalandsocialservicefacilities fornedycitizensofanyagewhocanotgethistype ofhelpfromotheragencies.previously,these serviceswereprovidedbyanotherlocalnon-profit agencycaledfishofbatonrouge.however,thelocal UnitedWayagencywithdrewitsfundingofFISHand, acordingly,fishmergedwiththecouncilonagingon ~SpecialRevenueFunds OctoberI,196. SpecialRevenueFundsareusedtoacountforthe procedsofspecificrevenuesourcesthatarelegaly restrictedtoexpendituresforspecifiedpurposes. ThefolowingfundscomprisetheCouncil'sSpecial RevenueFunds: 17

43 ExhibitE Note1-SumaryofSignificantAcountinaPolicies c.fundacounting:-(continued) -(continued) ~GeneralFund-(continued) TheCouncilusesitspublicrelationsprogramtoinform PublicRelations andeducatethecomunityabouthecouncil'services andprograms.someofthespecificservicesprovided underthisprogramareasfolows: ~TheCouncilpublishesaresourceguide,"Platinum Plus",toprovideinformationaboutcomunity ~TheCouncil'snewspaper,"ThePlatinumRecord",is servicesrelatedtoseniorcitizens. publishedanddistributedmonthlytoaproximately 18,90homesinEastBatonRougeParishtoinform readersaboutthecouncil'sactivitiesandprovide ~TheCouncilsponsorsspecialevents,suchas, informationtohelpelderlypeople. AgelesExpos,togivepeopleinformationabouthe comunityresourcesfortheelderly. TheMedicaidWaiverprogramprovideshomemakersand MedicaidWaivers Medicaidservicesforupto35hoursperwekto qualifiedparticipants.thecouncilispaidafeby Medicaidtoperformtheseservices. GrandeMealsincludecongregatemealssoldto GrandeMeals organizations,guestmealsoldatc-icongregatemeal sites,andmealsdeliveredtothehomesofpersonswho arehomeboundandwilingtopaythefulcostofthe meal.anyrevenuesinexcesofexpendituresto operatethisprogramaretransfered,asneded,tothe TitleIC-IandC-2programstosuplementtheir costsofprovidingmeals. 16

44 ExhibitE NoteI-SumaryofSiqnificantAcountinqPolicies c.fundacounting:-(continued) -(continued) continued ~GeneralFund-(continued) TheCouncilsponsorspecialactivitiesforsenior Local-(continued) citizensuchasananualfishingrodeo,aneaster party,achristmasparty,andteadances. TheCouncilprovideshealth flushotstoenablesenior detecthealthproblems. citizenstopreventor ~TheCouncilprovidesaconsignmentstore,caled screningservicesand thecraftsofdistinction,toenablesenior Localfundsarealsoprovidedastransferstospecial citizenstomarketheircrafts. revenuefundstosuplementthoseprograms.in adition,mostofthefixedasetaditionsarepaid forwithlocalfunds. PCOA(Act735)fundsareapropriatedfortheCouncil bythelouisianalegislatureandremitedtothe CouncilviatheGovernor'soficeofElderly Afairs(GOEA).TheCouncilmayusethese"Act735" fundsatitsdiscretion.duringfiscalyear197,al PCOAfundswereusedtosuplementtheTitleIB programs. GrandeAidprovidesqualityhomehealthcarefor GrandeAid homeboundelderlypatients.anypersonwhohasa doctor'sprescriptionforhomehealthcareservicesis acandidateforgrandeaid.grandeaidislicensedby thestateoflouisianandiscertifiedbymedicareand Medicaid. 15

45 ExhibitE Note1-SumaryofSiGnificantAcountinaPo]~c~e~ continued c.fundacounting:-(continued) -(continued) Governmentalfundsareusedtoacountforalormostof theacquisitionoffixedasets,andtheservicingof thecouncil'sgeneralactivities,includingthecolection generalong-termdebt. andisbursementofspecificorlegalyrestrictedmonies, Thegovernmentalfundsandtheprogramscomprisingthem, aspresentedinthefinancialstatements,aredescribedas folows: ~GeneralFund TheGeneralFundisthegeneraloperatingfundofthe Council.Itisusedtoacountforalfinancial resourcesexcepthoserequiredtobeacountedforin anotherfund.these acountedforandreportedacordingtothesource discretionaryfundsare (federal,stateorlocal)fromwhichtheyarederived. Inadition,theservicingofgeneralong-termdebtis acountedforinthegeneralfundbecauseunrestricted resourcesareusedtopayfortheliabilitiesincured bythisfundandtherearenolegalmandatestousea debtservicefund. ThefolowingprogramscomprisetheCouncil'sGeneral Fund: TheCouncilsponsorsavarietyofprogramstoserveits Local elderlyclienteleaspartofthelocalcomponentofthe GeneralFund.Someofthemoresignificantprograms areasfolows: ~TheCouncilcolectsdonationsforblanketsand fansanddistributestheseitemstosenior ~TheCounciloperatesaSeniorNetLearningCenter citizens. wherecomputerclasesareheldforthepurposesof trainingandenhancingthecomputerskilsof seniorcitizens. 14

46 Notei-SumarvofSianificantAcountinaPolicies ExhibitE continued -(continued) b.basisofpresentationforthefinancialstatements: InAprilof1984,theFinancialAcountingFoundation establishedthegovernmentalacountingstandardsboard (GASB)topromulgategeneralyaceptedacounting principlesandreportingstandardswithrespectto activitiesandtransactionsofstateandlocal governmentalentities.innovemberof1984,thegasb isuedacodificationofgovernmentalacountinaand FinancialReportinqStandards.Thiscodificationand subsequentgasbpronouncementsarerecognizedasgeneraly aceptedacountingprinciplesforstateandlocal governments. Theacompanyingfinancialstatementsconformto generalyaceptedacountingprinciplesforstateand localgovernments. Thesestatementshavealso incorporatedanyaplicablerequirementssetforthby AuditsofStateandLocalGovernmentalUnits,th auditguideisuedbytheamericaninstituteof PublicAcountants;SubsectionVI-Anual Reporting,acountingmanualforGovernor's ElderlyAfairscontractors;and,the GovernmentalAuditGuide. c.fundacounting: eindustry Certified Financial Oficeof Louisiana TheCouncilusesfundsandacountgroupstoreportits financialpositionandtheresultsofitsoperations. Fundacountingisdesignedtodemonstratelegal complianceandtoaidfinancialmanagementbysegregating transactionsrelatingtocertainfunctionsoractivities. TheacountsoftheCouncilareorganizedonthebasisof fundsandacountgroups,eachofwhichisconsidereda separateacountingentity.theoperationsofeachfund areacountedforwithaseparatesetofself-balancing acountsthatcompriseitsasets,liabilities,equity, revenues,andexpenditures,orexpenses,asapropriate. Resourcesarealocatedtoandacountedforinindividual fundsbaseduponthepurposeforwhichtheyaretobe spentandthemeansbywhichspendingactivitiesare controled.thevariousfundsaregrouped,inthe financialstatementsinthisreport,intotwogenericfund typesandtwobroadfundcategories(acountgroups). 13