EXCELLENCE FOR CfflLDREN, LLC THE FIRST THREE YEARS QUALITY CARE OF INFANTS AND TODDLERS. Financial Report. Year Ended June 30, 2014

Transcription

1 EXCELLENCE FOR CfflLDREN, LLC THE FIRST THREE YEARS QUALITY CARE OF INFANTS AND TODDLERS Financial Report Year Ended June 30, 2014

2 CONTENTS Independent Auditors' Report 1-2 FINANCIAL STATEMENTS Statement of financial position 4 Statement of activities 5 Statements of functional expenses: Excellence for Children, LLC 6 The First Three Years Quality Care of hifants and Toddlers 7 Statement of cash flows 8 Notes to financial statements 9-13 INTERNAL CONTROL AND COMPLIANCE Eidependent Auditors' 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 Summary schedule of current and prior year audit findings and corrective action plan 17 Page

3 C. Burton Kold«, CPA* Ruuell F. Champagne, CPA* Victor R. Slaven, CPA* GeraJd A. Tbibodeaux, Jr.. CPA* Robert S, Carter, CPA* Arthur R Mixon, CPA* Penny Angelle Scruggins, CPA Christine C. Doucet, CPA WandaF. Arcement, CPA, CVA Stephen J. Anderson, CPA CherylLBartley, CPA Bryan K, Joubert, CPA Matthew E. Maigaglio, CPA Allen J. LaBiy. CPA Albert R Leger, CPA,PFS,CSA* Marshall W, Guldry, CPA Stephen R Moore, Jr., CPA,PFS,CFF",ChFC"* James R Roy, CPA Robert J. Metz, CPA AlanM. Taylor, CPA Kelly M. Doucet, CPA MandyB. Self, CPA Paul L. Ddcambre, Jr., CPA Kristin B. Dauzat, CPA Jane R Hebert, CPA W. Jefirey Lowiy, CPA Brad E. Kolder, CTA JD Casey L. Ardoin, CPA DeidreL. Sttxdt, CPA Karen V. Fontenot, CPA * A Professional Accounting Corporation KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT To the Board of Directors of Excellence for Children, LLC and The First Three Years Quality Care of Infants and Toddlers Breaux Bridge, Louisimia Report on the Financial Statements 1S3 South Beadle Rd. Lafayette, LA 70S08 Phone (337) Fax (337) East Bridge SL Breaux Bridge, LA Phone (337) Fax (337) David Dr. SCe203 Morgan Ci^, LA Phone (985) Fax (985) EastMmn Street Ville Platte, LA Phone (337) Fax (337) West Sixth Avenue Oberiin, LA Phone (337) Fax (337) OFFICES WEB SITE Retired: Conrad O. Chapman, CPA* 2006 We have audited the accompanying financial statements of Excellence for Children, LLC (a singlemember limited liability corporation) and The First Three Years Quality Care of Infants and Toddlers (a nonprofit organization) which comprise the statements of financial position as of June 30, 2014, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to die financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordmice with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to die preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors* Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about die amoimte and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Member of: AMERICAN INSTmJTE OF CERTIF1H3 PUBLIC ACCOUNTANTS 450 East Main Street New Iberia, LA Phone (337) Fax (33' South Main Street imrbeville, LA Phone (337) Fax (337) Main Street Franklin, LA Phone (337) Fax (?%T) East Waddil St. Maiksville LA Phone (318) Fax (318) Metro Drive Alexandria, LA Phone (318) Fax (318) Member of: SOCIETY OF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS

4 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Excellence for Children, LLC and The First Three Years Quality Care of Infants and Toddlers as of June 30, 2014, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards^ we have also issued our report dated October 14, 2014, on our consideration of Excellence for Children, LLC and The First Three Years Quality Care of Infants and Toddlers' internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of 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 in considering Excellence for Children, LLC and The First Three Years Quality Care of Infants and Toddlers' internal control over financial reporting and compliance. KOLDER, CHAMPAGNE,SLAVEN& COMPANY,LLC Certified Public Accountants Lafayette, Louisiana October 14,2014

5 FINANCIAL STATEMENTS

6 EXCELLENCE FOR CHILDREN, LLC Statement of Financial Position June 30,2014 ASSETS Excellence for Children, LLC The First Three Years Current assets; Cash and interest-bearing deposits Grants receivable - State of Louisiana Accounts receivable, net of allowance for doubtful accounts Prepaid expenses Total current assets Property and equipment, net of accumulated depreciation $ 2,414 $ 7, ,669 17,411 16,937 19, , ,515 8,772 Total assets $353,340 $255,518 LIABILITIES AND NET ASSETS Current liabilities; Accounts payable and accrued liabilities Line of credit $ 6,527 $ 51,123-10,124 Total current liabilities 6,527 61,247 Net assets: Unrestricted 346, ,271 Total liabilities and net assets $353,340 $ 255,518 The accompanying notes are an integral part of this statement. 4

7 EXCELLENCE FOR CHILDREN, LLC Statement of Activities Year Ended June 30, 2014 Excellence The First for Children, Three LLC Years Changes in unrestricted net assets: Revenues - Contributions $ - $ 25,250 Fees: Training - 54,762 Other 23, Interest Total unrestricted revenues 23,632 80,206 Net assets released from restrictions - Expenses incurred in accordance with federal and state grants - 964,903 Total unrestricted revenues and other support 23,632 1,045,109 Expenses and losses: Program services - Region 5 Contract - 238,457 Region 6 Contract - 101,676 Early Childhood Community Network Pilot - 15,114 Training - 20,508 Other 3,716 - Total program services 3, ,755 Support services - General administration 59, ,987 Total expenses 63,599 1,038,742 Loss on disposal of assets - 5,254 Total expenses and losses 63,599 1,043,996 Change in unrestricted net assets (39,967) 1,113 Changes in temporarily restricted net assets: Federal grant - Early Childhood Community Network Pilot - 5,142 State of Louisiana grants- Region 5 Contract - 716,626 Region 6 Contract - 228,484 Early Childhood Community Network Pilot - 14,651 Net assets released from restrictions - (964,903) Change in temporarily restricted net assets ' - - Change in net assets (39,967) 1,113 Net assete, beginning of year 367, ,158 Member contribution 19,000 - Net assets, end of year $ 346,813 $ 194,271 The accompanying notes are an integral part of this statement. 5

8 EXCELLENCE FOR CHILDREN, LLC Statement of Functional Expenses Year Ended June 30,2014 Program Other Support General and Administrative Total Building maintenance $ - $ 8,132 $ 8,132 Car rental Depreciation - 24,823 24,823 Liability insurance - 1,206 1,206 Lodging 538 1,580 2,118 Meals 132 3,728 3,860 Mileage and airfere 2,288 10,537 12,825 Supplies Other ,512 Property taxes - 2,000 2,000 Telephone - 3,032 3,032 Utilities - 3,661 3,661 Total $3,716 $ 59,883 $ 63,599 The accompanying notes are an integral part of this statement. 6

9 Statement of Functional Expenses Year Ended June 30,2014 Program Services Support Early Childhood Community General Region 5 Region 6 Network and Contract Contract Pilot Training Administrative Total Accounting and audit $ 25,667 $ 3,257 $ $ - $ - $ 28,924 Building maintenance ,853 1,853 Computer expense 21,350 8, ,556 Continuing professional education 6,794 1, ,260 21,964 Depreciation ,604 12,604 Educational materials 19,374 8, ,798 Health insurance 40,559 18, ,985 Interest on loan ,279 2,279 Janitorial services Liability insurance 8,713 1, ,626 Lodging ,053 5,053 Marketing 3, ,932 Meals ,596 2,596 Mileage and airfare 21,423 23,789 1,344-2,853 49,409 Office expense 26,656 7, ,031 Other employee benefits 4,418 1, ,517 Other 4, ,534 7,051 PayroU taxes ,045 44,045 Rent 4,920 1, ,409 13,409 Retirement 2,880 2, ,974 30,578 Salaries , ,123 Supplies 18,214 10,045 13, ,404 45,433 Telephone 19,298 4, ,363 Trainer fees 5,220 6,660-20,508-32,388 Utilities 5,083 1, ,231 Total $238,457 $ 101,676 $ 15,114 $ 20,508 $ 662,987 $1,038,742 The accompanying notes are an integral part of this statement. 7

10 EXCELLENCE FOR CHILDREN, LLC Statement of Cash Flows Year Ended June 30,2014 Excellence The First for Children, Three LLC Years Cash flows from operating activities: Change in net assets $ (39,967) $ 1,113 Adjustments to reconcile change in net assets to net cash used by operating activities: Depreciation 24,823 12,604 Loss on disposal of assets - 5,254 Changes in assets and liabilitieshicrease in: Grants receivable - (18,937) Accounts receivable (15,611) - Prepaid insurance - (8,248) Accounts payable and accrued liabilities 5,502 6,599 Net cash used by operating activities (25,253) (1,615) Cash flows from financing activities: Proceeds from line of credit - 53,656 Principal payments on line of credit - (87,448) Contributions from member 19,000 - Net cash provided (used) by investing activities 19,000 (33,792) Net decrease in cash and cash equivalents (6,253) (35,407) Cash and cash equivalents, beginning of year 8,667 42,547 Cash and cash equivalents, end of year $ 2,414 $ 7,140 Cash paid for interest $ - $ 2,279 llie accompanying notes are an integral of this statement. 8

11 EXCELLENCE FOR CHILDREN, LLC Notes to Financial Statements (1) Nature of Entities and Significant Accounting Policies A. Organization and Purpose Excellence for Children, LLC is a single-member limited liability corporation organized for the purpose of accounting for the receipt and disbursement of funds received for providing professional training to administrators, caregivers, and family child care home providers serving infants and toddlers to increase the quality of child care services. The First Three Years Quality Care of Infants and Toddlers "The First Three Years" is a nonprofit corporation organized under the laws of the State of Louisiana for the purpose of accounting for funds received from the State of Louisiana for die purpose of providing information and counseling to families in need of child care, to improve the quality and availability of child care services and to increase community involvement in early care and education services. The entity is exempt from federal and state income taxes as a tax-exempt organization under Section 501(c) (3) of the Intemal Revenue Code, Accordingly, contributions to the entity are qualified as charitable donations. B. Basis of Accounting The fmancial statements of the entities have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Net assets and revenues, expenses, gains and losses are classified based on the existence or absence of grantor-imposed restrictions. Accordingly, net assets of the entities and changes therein are classified and reported as follows: Unrestricted net assets - Net assets that are not subject to grantor-imposed stipulations. Temporarily restricted net assets - Net ^sets subject to grantor-imposed stipulations ^at may or will be met, eidier by actions of the entities and/or the passage of time. When a 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. C. Cash and Cash Equivalents For purposes of the statement of cash flows, die entities consider "cash and cash equivalents" to include all demand accounts and interest-bearing deposits.

12 EXCELLENCE FOR CHILDREN, LLC Notes to Financial Statements (Continued) D. Allowance for Doubtfal Accounts The entities use the allowance method to determine uncollectible accounts receivable. The allowance is based on prior year's experience and management's evaluation of potential uncollectible receivables at year end. E. Property and Equipment Acquisitions of property and equipment are capitalized at cost, if purchased, or at estimated fair market value if donated. Donations of property and equipment are recorded as contributions of their estimated fair value. In the absence of donor stipulations regarding how Jong the contributed assets must be used, the entities have adopted a policy of implying a time restriction on contributions of such assets that expires over useftil lives of the assets. Depreciation is computed by the straight line method at rates based on the following estimated useful lives: Years Buildings 40 Equipment 5-7 Furniture and fixtures 5-7 F. Revenue and Expense Recognition The entities receive substantially all of their grant revenues from state agencies. Grant revenues are either recognized on a unit cost basis, depending upon a person being trained or a visit completed, or are recognized as expenditures are incurred. Training income is recognized upon performance of services. Contributions are recognized when the donor makes a commitment to give to the entities. All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amoimts 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 increase those net asset classes. Expenses are recognized in the period incurred in accordance with the accrual basis of accounting. G. Functional Allocation of Expenses The costs of providing the various programs and other activities have been summarized on a functional basis in the statement of activities. Expenses are charged directly to program or support services in general categories based on specific identification. 10

13 EXCELLENCE FOR CHILDREN, LLC Notes to Financial Statements (Continued) H. Income Taxes The Excellence for Children, LLC is a single-member limited liability company. Therefore, all taxable consequences flow through to its member's individual income tax return. The First Three Years qualifies as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code, and therefore, has no provision for federal income taxes. However, the organization's tax-exempt status has no effect on its liability for any federal excise taxes. Accounting principles generally accepted in die United States of America require the organization's management to evaluate tax positions taken and recognize a tax liability (or asset) if the organization has undertaken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. Management has analyzed the tax positions taken by the organization, and has concluded that as of June 30, 2014, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The organization is subject to routine audit by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Management believes it is no longer subject to income tax examinations for years prior to I. Compensated Absences The entities allow employees annual leave based on years of service. One week is granted to employees with one year of service and two weeks for five years or more. Annual leave must be taken during the year and is not cumulative from one year to the next. There is no sick leave available for employees. J, Donated Goods Occasionally, the entities receive nominal donations of goods which are immediately disbursed to families in need. These donations are not reflected in the statement of activities because the criteria for recognition under Statement of Financial Standards (SFAS) No. 116, Accounting for Contributions Received and Contributions Made, have not been satisfied. K. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America require management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates. 11

14 EXCELLENCE FOR CHILDREN, LLC Notes to Financial Statements (Continued) (2) Grants Receivable Grants receivable at June 30, 2014 applicable to The First Three Years consists of the following: Federal (U.S. Department of Health and Human Services): Early Childhood Community Network Pilot State of Louisiana: Early Childhood Community Network Pilot Region 5 Region 6 $ 4,552 13, ,149 44,693 $222,669 (3) Propertv and Equipment Property and equipment consist of the following at June 30,2014: Excellence The First for Children, Three LLC Years Land $ 16,700 $ - Buildings 340,084 - Equipment 30,909 36,074 Furniture and fixtures 80,636 - Totals 468,329 36,074 Less accumulated depreciation (134,814) (27,302) Property and equipment, net $333,515 $ 8,772 Total depreciation expense for the year ended June 30, 2014 was $24,823 and $12,604 for Excellence for Children, LLC and The First Three Years, respectively. (4) Line of Credit Under the terms of the bank line of credit agreement dated October 2008, the First Three Years may bon*ow up to $250,000 with interest due monthly at a fixed rate of 6%. At June 30,2014, the outstanding borrowings were $10,124. The line is secured by cross-collateralization of all accounts receivable of the First Three Years and a guarantee from its member. 12

15 EXCELLENCE FOR CfflLDREN, LLC. Notes to Financial Statements (Continued) (5) Net Assets Released from Restrictions Net assets were released from restrictions by incurring expenses during the year ended June 30, 2014 in accordance with State of Louisiana Region 5 and Region 6 grants and the federal and state Early Childhood Community Network Pilot grants. (6) Retirement Benefits The First Three Years has a simple retirement plan for employees with one year of service. Eligible employees may contribute any percentage they wish. The First Three Years will match up to 3% of their salary. Contributions to the plan totaled $30,578 for the year ending June 30,2014. (7) Risk Management The entities are exposed to risks of loss in the areas of auto liability, general liability, management liability and workers' compensation. All of these risks are handled by purchasing commercial insurance cov^age. There have been no significant reductions in the insurance coverage during the year, nor have settlements exceeded coverage for the past three yem-s. (8) Subsequent Event Review Excellence for Children, LLC and The First Three Years have evaluated subsequent events through October 14,2014, the date which the financial statements were available to be issued. 13

16 INTERNAL CONTROL AND COMPLIANCE 14

17 C. Burton Koider, CPA* Russell F. ChampagHB, CPA* Victor R- Slaven, CPA' Gerald A. Thibodeaux, Jr., CPA* Robert S. Cart, CPA* Arthur R. Mbcon, CPA* Penny Angelle Scrug^ns, CPA Christine C. Doucet, CPA Wanda F. Arcement, CPA, CVA Stephen J, Anderson, CPA Cheryl L. Hartley, CPA Bryan K. Joubvt, CPA Matthew E. Margaglio, CPA AllenJ.LaBiy. CPA Alfawt R- Leger, CPAJ>FS.CSA* Marshall W. Guidry, CPA Stephen R. Moore, Jr.. CPA.PFS.CFP.ChFC** James R. Roy, CPA Robert J. Metz, CPA Alan M. Taylor, CPA Kelly M. Doucet, CPA MandyB. Self. CPA Paul L. Ddcambre, Jr., CPA Kristin B. Dauzat, CPA JmeR. Hebert, CTA W, Jeffrey Lowiy, CPA Brad E, Koider, CPA JI> Casey L, Ardoin, CPA Deidre L. Stock, CPA Karen V. Fontenot, CPA ' A ProfesDODBl Accounting Coiporation KOLDER, CHAMPAGNE, SLAVEN & COMPANY, CERTIFffiD PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' 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 LLC 183 South Beadle Rd. Lafayette, LA Phone (337) Fax (337) EastBiidge St. Breaux Biidge, LA Phone (337) Fax(337)33^ David Dr. Ste203 Morgan Ci^, LA Phone (985) Fax (985) East Main Street Ville Platte, LA Phone (337) Fax (337) West Sixth Avenue Ober{in.lA Phone (337) Fax p37) OFFICES WEBSITE Retired: Conrad 0. Chapman, CPA* East Main Street New Iberia, LA Phone (337) Fax (337) South Main Street Abbeville, LA 70SI0 Phone (337) Fax (337) Main Street Franklin. LA Phone (337) Fax (337) East Waddil St. Maiksville LA Phone (318) Fax (318) Metro Drive Alexandria, LA Phone (318) 442-M21 Fax^IS) To the Board of Directors of Excellence for Children, LLC and The First Three Years Quality Care of Infants and Toddlers Breaux Bridge, Louisiana We have audited, in accordance wilh auditing standards generally accepted in die 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, the financial statements of Excellence for Children, LLC (a single-member limited liability corporation) and The First Three Years Quality Care of hifants and Toddlers (a nonprofit organization), which comprise the statement of financial position as of June 30, 2014, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated October 14,2014. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements,' we considered Excellence for Children, LLC and The First Three Years Quality Care of Infants and Toddlers' internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on die financial statements, but not for the purpose of expressing an opinion on die effectiveness of the Excellence for Children, LLC and The First Three Years Quality Care of Infants and Toddlers' internal control. Accordingly, we do not express an opinion on the effectiveness of the Excellence for Children, LLC and The First Three Years Quality Care of Infants and Toddlers' internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to idendfy all deficiencies in internal control that might be significant deficiencies or material weaknesses, and therefore, significant deficiencies or material weaknesses may exist that were not identified. However, as described in the accompanying summary schedule of current and prior year audit findings and corrective action plan, we identified certain deficiencies in internal control over fmancial reporting that we consider to be material weaknesses. Member ofi AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 15 Member of: SOCIETY OF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS

18 A. deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned fimctions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying summary schedule of current and prior year audit fmdings and corrective action plan as items and to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. The Organization's Response to Findings The Excellence for Children, LLC and The First Three Years Quality Care of Infants and Toddlers' response to the fmdings identified in our audit is described in the accompanying summary schedule of current and prior year audit fmdings and corrective action plan. We did not audit the response and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Excellence for Children, LLC and The First Three Years Quality Care of Infants and Toddlers' internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Atiditing Standards in considering Excellence for Children, LLC and The First Three Years Quality Care of Infants and Toddlers' internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Under Louisiana Revised Statute 24:513, this report is distributed by the Louisiana Legislative Auditor as a public document. Kolder, Champagne^ Slaven & Company^ LLC Certified Public Accountants Lafayette, Louisiana October 14,

19 EXCELLENCE FOR CHILDREN, LLC Summary Schedule of Current and Prior Year Audit Findings and Corrective Action Plan Year Ended June 30,2014 Ref. No. Fiscal Year Finding Initially Occurred CURRENT YEAR (6/30/14) - Intemal Control: PRIOR YEAR (6/30/13) ~ Intemal Control: Description of finding Due to the small number of employees, the entities did not have adequate segregation of functions within the accounting system. The entities do not have a staff person who has the qualifications and training to apply generally accepted accounting principles (GAAP) in recording the entity's financial transactions or preparing its financial statements, including the related notes. Due to the small number of employees, the entities did not have adequate segregation of functions within the accoimting system. The entities do not have a staff person who has the qualifications and training to apply generally accepted accounting principles (GAAP) in recording the entity's financial transactions or preparing its financial statements, including the related notes. Corrective Action Taken No No No No Corrective Action Planned No response is considered necessary. The entities have evaluated the cost vs. benefit of establishing intemal controls over the preparation of financial statements in accordance with GAAP, and determined that it is in the best interests of the entities to outsource this task to its independ^t auditors, and to carefully review the draft financial statements and notes prior to approving them and accepting responsibility for tiieir contents and presentation. No response is considered necessary. The entities have evaluated the cost vs. benefit of establishing intemal controls over the preparation of financial statements in accordance with GAAP, and determined that it is in the best interests of the entities to outsource fiiis task to its independent auditors, and to carefuuy review the draft financial statements and notes prior to approving them and accepting responsibility for their contents and presentation. Name of Anticipated Contact Completion Person Date N/A N/A N/A N/A N/A N/A N/A N/A 17