o/7?/<-/b ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection)

Transcription

1 [H.~,COP~[' COI~i'2C,In~n~th~ BtCKin[IL~}FinancialReport forthetereboneconsortium, ThePrivateIndustryCouncil ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection) Underprovisionsofstatelaw,this reportismp~bncdocument.a copyofthereporthasbensubmit~-[ouma,louisiana tedtofhe~,udit~:,j,oreviewed, entityando~hersptopriatepublic oficials.lhmre,portis,wa;!ablefor publicirlspectio,~;.-the[:>,[,[on RougeoficeofthtLegsf~tiveAudi-June30,198 totand,whof%:ai:;prcpfi~te,athe oficeoftheparishc!srkofcourt. ReleaseDate /~_A.&'_)_~9_~_.~_ QIqG o/7?/<-/b

2 T ThePrivateIndustryCouncilfortheTereboneConsortium, ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection) June30,198 ExhibitsNumber Page IntroductoJTSection TitlePage TableofContents FinancialSection IndependentAuditor'sReport 1-2 GeneralPurposeFinancialStatements CombinedBalanceShet-AlFundTypesandAcountGroups A 3 CombinedStatementofRevenues,ExpendituresandChangesin FundBalance-GovernmentalFundType B 4 CombinedStatementofRevenues,ExpensesandChangesinFund Balance-FiduciaryFundType C 5 NotestoFinancialStatements D 6-15 Statements Number Page CombiningBalanceShet-SpecialRevenueFunds CombiningStatementofRevenues,ExpendituresandChangesin FundBalances-SpecialRevenueFunds

3 L (Continued) Number Page SpecialReportsofCertifiedPublicAcountants ReportonComplianceandonInternalControlOverFinancialReporting BasedonanAuditofGeneral-PurposeFinancialStatementsPerformed inacordancewithgovernmentauditing,standards ReportonCompliancewithRequirementsAplicabletoeachMajor ProgramandonInternalControlOverComplianceinAcordancewith OMBCircularA ScheduleofExpendituresofFederalAwards 24 NotestoScheduleofExpendituresofFederalAwards 25 ReportsbyManagement ScheduleofFindingsandQuestionedCosts ScheduleofPriorYearFindingsandQuestionedCosts 28 Management'sCorectiveActionPlan 29

4 BourgeoisBenet P TotheBoardofDirectorsofThePrivateIndustry CouncilfortheTereboneConsortium, ServiceDeliveryAreaThirty-One,Inc., Houma,Louisiana. andindividualfundandacountgroupfinancialstatementsoftheprivateindustrycouncilforthe Wehaveauditedtheacompanyingeneral-purposefinancialstatementsandthecombining TereboneConsortium,ServiceDeliveryAreaThirty-One,Inc.,(theP.I.C.),acomponentunitofthe LafourcheParishCouncil,StateofLouisiana,asofandfortheyearendedJune30,198,aslistedin thetableofcontents.thesefinancialstatementsaretheresponsibilityofthep.i.c.'smanagement.our responsibilityistoexpresanopiniononthesefinancialstatementsbasedonouraudit. standardsaplicabletofinancialauditscontainedingovernmentauditingstandards,isuedbythe Weconductedourauditinacordancewithgeneralyaceptedauditingstandardsandthe ComptrolerGeneraloftheUnitedStates.Thosestandardsrequirethatweplanandperformtheaudit tobtainreasonableasuranceaboutwhetherthefinancialstatementsarefreofmaterial mistatement.anauditincludesexamining,onatestbasis,evidencesuportingtheamountsand disclosuresinthefinancialstatements.anauditalsoincludesasesingtheacountingprinciplesused andsignificantestimatesmadebymanagement,aswelasevaluatingtheoveralfinancialstatement presentation.webelievethatourauditprovidesareasonablebasisforouropinion. almaterialrespects,thefinancialpositionoftheprivateindustrycouncilfortheterebone Inouropinion,thegeneral-purposefinancialstatementsreferedtoabovepresentfairly,in Consortium,ServiceDeliveryAreaThirty-One,Inc.asofJune30,198,andtheresultsofits operationsfortheyearthenendedinconformitywithgeneralyaceptedacountingprinciples.also inouropinion,thecombiningandindividualfimdandacountgroupfinancialstatementsreferedto abovepresentfairly,inalmaterialrespect,thefinancialpositionofeachoftheindividualfundsand acountgroupsoftheprivateindustrycouncilforthetereboneconsortium,servicedeliveryarea Thirty-One,Inc.asofJune30,198,andtheresultsofoperationsofsuchfundsfortheyearthenended inconformitywithgeneralyaceptedacountingprinciples. 1340West'1unclIvd,Suile43(1 POIlox2168 Phone(504) I:~(504) ]otla,la AI,imiledI.iabililyCompany A~ounlantsIConsult#nls Certifiedl'tlbli~ I'.O.Box6060 NewOrleans,I,A leritagcplaza,suile80 504WestSecondStlecl Phone(504) I'OI~ox1205 Fax(504) '1hibodaux,I,A70302-L205 Phone(504)4?-5243

5 thep.i.c.changeditsmethodofvaluationforinvestmentsfromcostofairvaluefectivejuly1, AsdiscusedinNote2tothefinancialstatements,inordertoreflectmorecurentvaluations, 197. December4,198onourconsiderationofThePrivateIndustryCouncilfortheTerebone InacordancewithGovernmentAuditingStandards,wehavealsoisuedoureportdated Consortium,ServiceDeliveryAreaThirty-One,Inc.'sinternalcontroloverfinancialreportingandour testsofitscompliancewithcertainprovisionsoflaws,regulations,contractsandgrants. statementstakenasawholeandonthecombiningandindividualfundandacountgroupfinancial Ourauditwasmadeforthepurposeoforminganopiniononthegeneral-purposefinancial statementsoftheprivateindustrycouncilforthetereboneconsortium,servicedeliver),area Thirty-One,Inc.TheacompanyingscheduleofexpendituresofederalawardsasrequiredbyU.S. OficeofManagementandBudgetCircularA-13,AuditsofStates,LocalGovernments,andNon- ProfitOrganizations,listedinthetableofcontentsispresentedforpurposesofaditionalanalysisand isnotarequiredpartofthefinancialstatementsoftheprivateindustrycouncilfortheterebone Consortium,ServiceDeliveryAreaThirty-One,Inc.Suchinformationhasbensubjectedtothe auditingproceduresapliedintheauditofthegeneral-purpose,combiningandindividualfundand acountgroupfinancialstatementsand,inouropinion,isfairlypresented,inalmaterialrespects,in relationtothefinancialstatementsofeachoftherespectiveindividualfundsandacountgroupstaken asawhole. HOUlTlfl,Lfl., December4,198 CertifiedPublicAcountants

6 F~xlibitA ThePrivateIndustryCouncilfortheTereboneConsortium, ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection) June30,198 Governmental FundType Fiduciary Special FundTypeGeneral ASETSANDOTilERDEBITS Revenue Penmon AcountGroups Trust FixedLong-Term AsetsObligations (Memorandum Total Only) AsetsCashInvestments $29,846 DuefromtheStaleofLouisiana Receivables-miscelaneous $ OtherDebits Duefromotherfunds $ $ $29, ,913 Fixedasets 25,248 1,532,096 1,532, , ,248 Amountobeprovidedforetirementof generalong-termobligations Tolalasetsandotherdebits $37,82 $292,913$1,532,096 $95,907$2, ,907 95,907 LIABILITIES,EQUITYANDOTHERCREDITS Liabilities Acountspayableandacruedexpenditures Duetotberfunds $ long-termobligations 25,248 $ $312, Equitya~dOtherCredits 37,82 95,907 95,907 43,728 Investmentsini,cneralfixedasets Fundbalances: Reservedforemployes'retirementsystem $292,913 $1.532,096,532, ,913 Totalequityandothercredits Tolaliabilities,equityandothercredits $37,821 $292,913$1,532,~96 292,913,532,096 $95,9B7$2,258,737,825,09 Senotestofinaocialstatements.

7 ThePrivateIndustryCouncilfortheTereboneConsortium, ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection) FortheyearendedJune30,198 Revenues Intergovemental Expenditures-EconomicDevelopmentandAsistance Curent: Administrative Trainingrelated/suportiveservice Totalexpenditures ExcesofRevenuesOverExpenditures FundBalance Beginingofyear Endofyear Senotestofinancialstatements Revenue Special $2,283, ,19 1,382, ,516 2,283,752 ExhibitB

8 ExhibitC COMBINEDSTATEMENTOFREVENUES,EXPENSESAND CHANGESINFUNDBALANCE-FIDUCIARYFUNDTYPE ThePrivateIndustryCouncilfortheTereboneConsortium, ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection) FortheyearendedJune30,198 Pension Trust Fund OperatingRevenues Contributions Investmentearnings 145,73 72,87 To(aloperatingrevenues 218,650 OperatingExpenses Distributionstoparticipants 615,257 NetLos (396,607) FundBalance Begining&year 570,623 Priorperiodadjustment(Note2) 18,897 Endofyear $292,913 Senotestofinancialstatements

9 ExhibitD ThePrivateIndustryCouncilfortheTereboneConsortium, ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection) June30,198 Note1-SUMMARYOFSIGNIFICANTACOUNTINGPOLICIES TheacountingandreportingpoliciesofThePrivateIndustryCouncilfortheTerebone Consortium,ServiceDeliveryAreaThirty-One,Inc.(theP.I.C.),confornatogeneraly aceptedacountingprinciplesforlocalgovernmentalunitsasprescribedbythe GovernmentalAcountingStandardsBoard.Thefolowingisasumaryofthemore significantacountingpolicies: a)reportingentity ThePrivateIndustryCouncilfortheTereboneConsortium,ServiceDeliveryArea Thirty-One,Inc,(theP.I.C.),isacomponentunitoftheLafourcheParishCouncil(the Parish). TheP.I.C.receivesitsrevenuereportedinitsSpecialRevenueFundsprimarilyfrom federalfinancialasistancegrantsprovidedbythejobtrainingpartnershipactof1982. Inadition,statefundingisprovidedbytheJobNetgrantfromtheStateofLouisiana, DepartmentofLabor. TheP.I.C.wasincorporatedasanon-profitcorporationonAugust28,1987.TheP.I.C., underanadministrativeagrementefectivejanuary1,198,withtheparishservesto administcrthejobtrainingplanpursuantothejobtrainingpartnershipactinthe ParishesofAsumption,LafoureheandTerebone,whichavebendesignatedas ServiceDeliveryAreaThirty-One.InSeptember197theP.I.C.changedgrantrecipients totheparishforfundsreceivedunderthejobtrainingpartnershipact.previously,the TereboneParishConsolidatedGovernmentservedasgrantrecipient. TheP.].C.hasreviewedalofitsactivitiesandeterminedthatherearenopotential componentunitswhichshouldbeincludedinitsfinancialstatements.

10 (Continued) ExhibitD Note1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) b)fundstructure Theacountingsystemisorganizedandoperatedonafundbasiswherebyaseparate, self-balancingsetofacountsismaintainedforthepurposeofcaryingonspecificactivitiesoratainingcertainobjectivesinacordancewithspecialregulations,restrictionsor limitations.thevariousfundsaregrouped,inthefinancialstatementsinthisreport,into twobroadfundcategoriesandtwogenericfundtypesasfolows: GovernmentalFunds SpecialRevenueFunds-SpecialRevenueFundsareusedtoacountforthe procedsofspecificrevenuesourcesthatarelegalyrestrictedtoexpendituresfor specifiedpurposes. FiduciaryFund PensionTrustFund-ThePensionTrustFundisusedtoacountforasetsofthe 401(k)planheldbytheP.I.C.inatrustecapacityforemployes.ThePension TrustFundisusedtoacountforoperationswherethegoverningbodyhasdecided thatperiodicdeterminationofrevenuesearned,expensesincuredand/ornetincome isapropriateforcapitalmaintenance. AcountGroups TheGeneralFixedAsetsAcountGroupisusedtoacountforfixedasetsnot acountedforinthetrustfund.thegenerallong-termobligationsacount Groupisusedtoacountforgeneralong-termobligationsandcertainother liabilitiesthatarenotspecificliabilitiesofthefund. c)basisofacounting Basisofacountingreferstowhenrevenuesandexpendituresorexpensesarerecognized intheacountsandreportedinthefinancialstatements.basisofacountingrelatesto the!truingofthemeasurementsmade,regardlesofthemeasurementfocusaplied.

11 (Continued) ExhibitD Note1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) c)basisofacounting(continued) AlGovernmentalFundsareacountedforusingthemodifiedacrualbasisofacounting.Theirevenuesarerecognizedwhentheybecomemeasurableandavailableasnet curentasets.expendituresaregeneralyrecognizedunderthemodifiedacrualbasis ofacountingwhentherelatedfundliabilityisincured.anexceptiontothisgeneral ruleisacumulatedunpaidvacationandsickpaywhichisrecognizedwhendue. TheP.I.C.receivesfundingaspasthroughgrantsfromtheParish.TheLouisiana DepartmentofLaborandtheLouisianaDepartmentofEducationreimbursetheP.1.C. throughtheparishonareimbursementforactualexpenditurespaidbasis. ThePensionTrustFundisacountedforusingtheacrualbasisofacounting.Revenues arerecognizedwhentheyarearned,andexpensesarerecognizedwhentheyare incured. d)useofestimates Thepreparationofinancialstatementsinconformitywithgeneralyaceptedacounting principlesrequiresmanagementomakestimatesandasumptionsthatafectcertain reportedamountsandisclosures.acordingly,actualresultscouldiferfromthose estimates. e)operatingbudgetarydata TheP.I.C.isaquasi-governmentalentitywhichisnotlegalyrequiredtoadoptbudgets. AbudgetforeachSpecialRevenueFundisubmitedtotherespectivestategrantor departmentsforaproval.fundingisfromintergovernmentalgrantsreceivedfromthe LouisianaDepartmentofLaborandtheLouisianaDepartmentofEducation.Some budgetsarepreparedonajune30andothersonaseptember30fiscalyearbasisto coincidewithintergovernmentalgrantsreceivedfromthelouisianadepartmentoflabor andthelouisianadepartmentofeducation.duetotheabove,budgetoactualcomparisonsarenotpresentedfortheyearendedjune30,198. f)acountsreceivable ThefinancialstatementsfortheP.I.C.containoalowanceforuncolectiblereceivables. Uncolectiblereceivablesarerecognizedasbadebtsathetimeinformationbecomes availablewhichwouldindicatetheuncolectibilityoftheparticulareceivable.these amounts,ifany,arenotconsideredtobematerialinrelationtothefinancialpositionor operationofthefunds.

12 (Continued) ExhibitD NoteI-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) g)investments Investmentsarestatedatfairvalue,asmeasuredbyquotedmarketprice h)fixedasetsandlong-termobligations Theacountingandreportingtreatmentapliedtothefixedasetsandlong-term obligationsasociatedwithafundaredeterminedbyitsmeasurementfocus.al governmentalfundsareacountedforonaspendingor"financialflow"measurement focus.thismeansthatonlycurentasetsandcurentliabilitiesaregeneralyincluded ontheirbalanceshets.theireportedfundbalance(netcurentasets)isconsidereda measureof"availablespendableresources".governmentalfundoperatingstatements presentincreases(revenuesandotherfinancingsources)andecreases(expendituresand otherfinancinguses)inetcurentasets. Acordingly,theyaresaidtopresentasumaryofsourcesandusesof"available spendableresources"duringaperiod. Fixedasetsusedingovernmentalfundtypeoperations(generalfixedasets)are acountedforinthegeneralfixedasetsacountgroup,ratherthaningovernmental funds.publicdomain("infrastructure")fixedasetsconsistingofcertainimpro-ements otherthanbuildings,includingroads,bridges,curbsandguters,stretsandsidewalks, drainagesystemsandlightingsystemsarenotcapitalized.nodepreciationhasben providedonfixedasets.alfixedasetsarevaluedathistoricalcost. Long-termobligationsexpectedtobefinancedfromgovernmentalfundsareacounted forinthegenerallong-termobligationsacountgroup,notinthegovernmentalfunds. Thetwoacountgroupsarenot"funds".Theyareconcernedonlyvciththemeasurement ofinancialposition.theyarenotinvolvedwithmeasurementofresultsofoperations. Becauseoftheirspendingmeasurementfocus,expenditurerecognitionforgovernmental fundtypesislimitedtoexcludeamountsrepresentedbynoncurentliabilities.sincethey donotafectnetcurentasets,suchlong-termamountsarenotrecognizedas governmentalfundtypexpendituresorfundliabilities.theyareinsteadreportedas liabilitiesinthegenerallong-termobligationsacountgroup,

13 (Continued) ExhibitD Note1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) i)vacationandsickleave Acumulatedvacationandsickleavearerecordedasanexpenditureoftheperiodin whichpaidinalgovementalfunds. Employescanearntwelve,eightenortwenty-fourdaysperyearvacationleave, dependingontheirlengthofemployment.acumulatedvacationleavebenefitsaredue tothemploye,athefuneofterminationordeath.thevacationpolicyprovidesthat employesaretotakevacationwithinoneyearofbeingearned,butafterjanuaryiofthe folowingyear.employesmayacumulateandcaryforwardnomorethanfortyhours ofanualeavefromoneyeartothenext. Employesearnsevendaysofsickleaveperyearandarepermitedtoacumulatesick leavefromoneyeartothenext.acumulatedsickleaveisduetothemployeathe timeofterminationordeath.thesickleavepolicyprovidesthatemployesarealowed totakesickleaveasearned. AcumulatedvacationandsickleavebenefitsarereportedasaliabilityintheGeneral Long-termObligationsAcountGroup. j)encumbrances Encumbranceacounting,underwhichpurchaseorders,contractsandothercomitmentsarerecordedinthefundgeneraledgers,isnotutilizedbytheP.I.C. k)memorandumonly-totalcolumns Thetotalcolumnsonthegeneral-purposefinancialstatementsarecaptioned"MemorandumOnly"becausetheydonotrepresentconsolidatedfinancialinformationandare presentedonlytofacilitatefinancialanalysis.thecolumnsdonotpresentinformation thatreflectsfinancialpositionoresultsofoperations,inacordancewithgeneraly aceptedacountingprinciples.interfundeliminationshavenotbenmadeinthe agregationofthisdata. Note2-CHANGEINACOUNTINGPRINCIPLE TheP.I.C.changedthevaluationofinvestmentsfromcostofairvalueinordertoreflect morecurentvaluationsforinvestmentsheldinitsretirementplans.asaresultunrealized gainsof$1g,897arereportedasapriorperiodadjustmentinthepensiontrustfund.

14 (Continued) ExhibitD Note3-CASHANDINVESTMENTS TheP.I.C.isaquasi-governmentalentitywhichisnotrequiredtocomplywithLouisiana lawsrelatingtocolateralizationofcashandinvestments.atyearend,thep.i.c.'scarying amountofdepositswas$29,846andthebankbalancewas$71,070.thentirebankbalance of$71,070wascoveredbyfederaldepositoryinsurance(category1).therewereno investmentsotherthanthoseinthe401(k)plan(senote10).investmentsofthe401(k)plan arenotcolateralized(category3). Note4-DUEFROMTHESTATEOFLOUISIANA AmountsduefromthestateofLouisianatJune30,198consistedofthefolowing StateofLouisiana- DepartmentofLabor DepartmentofEducation $245,28 36,802 Total Note5-INTERFUNDRECEIVABLEANDPAYABLEBALANCES SuchbalancesatJune30,198areasfolows IndividualFunds Receivables Imerfund Interfund Payables SpecialRevenueFunds: IAFund IBFund $15,179 8%Fund ICFund 5,203 $10,069 7,562 TitleIFund TitleIlNationalReserveGrantFund 4,684 2,692 5%IncentiveFund 182 4,925 TotalSpecialRevenueFunds ~25,248

15 (Continued) ExhibitD Note6-CHANGESINFIXEDASETS Asumaryofchangesinfixedasetsfolows Balance July1, Balance 197 Aditions Deletions June30, 198 Oficefurniture, Machineryand equipmentand fixtures $1,840,15$126,702 $512,972$1,453,845 equipment Totals 78,251 78,251 Thedeletionsrelateprimarilytothedisposalofobsoletecomputerandotherelectronic equipment. Note7-LONG-TERMOBLIGATIONS Along-termliabilityforacumulatedunpaidvacationandsickleaveof$95,907which representsthep.i.c.'scomitmentofundsuchcostsfromfutureoperations,hasben recordedinthegenerallong-termobligationsacountgroupatjune30,198. Thefolowingisasumaryofthechangesinlong-termobligationsoftheP.I.C.fortheyear endedjune30,198: Long-termobligations,July1,197 $80,920 Netincreaseinacumulatedunpaid vacationandsickleave 14,987 Long-termobligations,June30,198 _$95,907 Note8-OFICEANDAUTORENTALS Oficespaceandautomobilesarerentedonamonth-to-monthbasis.Rentalexpenditures incuredontheoficesandtheautomobilesamountedto$101,72duringtheyearended June30,

16 (Continued) ExhibitD Note9-RISKMANAGEMENT TheDistrictisexposedtovariousrisksoflosrelatedtoworkerscompensation;torts;theft of,damagetoandestructionofasets;erorsandomisions;andnaturaldisastersforwhich thedistrictcariescomercialinsurance.nosetlementsweremadeduringtheyearthat excededthedistrict'sinsurancecoverage. Note10-DEFINEDCONTRIBUTIONPLAN A.PlanDescription DuringtheyearendedJune30,198theP.I.C.terminateditsmandatorymoneypurchase retirementplaninfavorofestablishinga401(k)plan.thepensiontrustfundincuredthe folowingactivityasaresultofterminationofthemoneypurchaseplanandestablishment ofthe401(k)plan: Money RetirementPlan Purchase 401(k) PensionTrust Fund Contributions Investmentearnings $7, ~!.79 $65,031 7,294 $72,87 145,73 146,325 72, ,650 Distributiontoparticipants Participantacountrolovers (20,58) 615,257) 20,58 (615,257) Netincome(los) (689,520) 292,913 (396,607) Fundbalance Beginingofyear Priorperiodadjustment(Note2) 570,623 18, ,623 18,897 Endofyear

17 (Continued) ExhibitD Note10-DEFINEDCONTRIBUTIONPLAN(Continued) A.PlanDescription(Continued) TheP.I.C.401(k)RetirementPlanwasestablishedtoprovideretirementbenefitstoal permanentful-timemployeshavingcompletedatleastoneyearofservice.atjune30, 198,therewere25planmembers.Participantsarepermitedtocontributeinanyamounl upto15%oftheircompensationotoexced$9,50.thep.i.c.matches10%ofthe employecontributionsnotoexced5%ofthemploye'scompensation.planprovisions andcontributionrequirementsarestablishedandmaybeamendedbythep.1.c. B.SignificantAcountingPolicies Basisofacounting-theP.I.C.RetirementPlanfinancialstatementsarepreparedusingthe acrualbasisofacounting.employerandplanmembercontributionsarcrecognizedintile periodthathecontributionsaredue. Methodusedtovalueinvestments-planinvestmentsarereportedatfairvalue C.Concentrations InvestmentsintheplanatJune30,198consistedofsharesofregisteredinvestlnent companieswithintheonegroupfamilyofunds.thefundsconsistedofthefolowing: PrimeMoneyMarketFund IncomeBondFund $7,084 LimitedVolatilityBondFund 4,587 GovernmentBondFund 1,476 IncomeEquityFund 875 EquityIndexFund ValueGrowthFund 18,370 7,15 SmalCapitalizationFund 74,2 9,14 Totalplaninvestments

18 (Continued) ExhibitD Note1-ECONOMICDEPENDENCY TheP.I.C.receivesitsrevenuefromfundsprovidedthroughgrantsadministeredbythe LouisianaDepartmentofLaborandtheLouisianaDepartmentofEducation.Thegrant,Job TrainingPartnershipAct(JTPA),amountsareapropriatedeachyearbythefederalandstate governments.ifsignificantbudgetcutsaremadeathefederaland/orstatelevelstheamount ofthefundsthep.i.c.receivescouldbereducedsignificantlyandhaveanadverseimpact onitsoperations. TheWorkForceInvestmentActof]98(theAct)eliminatestheJTPAprogram.Statesare requiredtofulyimplementaloftherequirementsoftheactbyjuly1,20.however,the DepartmentofLaborencouragesStatestoimplementearly.Thesefinancialstatementshave benpreparedasuminganimplementationdatenotbeforejuly1,19. Note12-COMPENSATIONOFBOARDOFDIRECTORS NocompensationwaspaidtoDirectorsofthePrivateIndustryCouncilfortheyearended June30,198.

19 SPECIALREVENUEFUNDS areusedtoincreasethemployabilityofeconomicalydisadvantagedadultsthroughparticipationin IAFund-ToacountforfundsreceivedunderTitleI-AoftheJobTrainingPartnershipAct.Funds clasromandon-the-jobtrainingandworkexperience.inadition,employeroutreach,jobsearch andirectplacementactivitiesareconducted. areusedtoincreasethemployabilityofeconomicalydisadvantagedyouththroughthejobtraining IBFund-ToacountforfundsreceivedunderTitleI-BoftheJobTrainingPartnershipAct.Funds PartnershipActSumerYouthEmploymentProgram. toincreasethemployabilityofeconomicalydisadvantagedyouththroughparticipationinclasrom ICFund-ToacountforfundsunderTitleI-CoftheJobTrainingPartnershipAct.Fundsareused andon-the-jobtraining,workexperienceandexemplaryouthprograms.inadition,employer outreach,jobsearchandirectplacementactivitiesareconducted, 8%Fund-ToacountforEducationSetasidefundsreceivedundertheJobTrainingPartnershipAct pasedthroughthelouisianadepartmentofeducation.fundsareusedtoprovideclasromtraining toeconomicalydisadvantagedyouthsandadultsinocupationsinwhichtheparticipantsmaybe placedinunsubsidizedemployment. TitleI1Fund-ToacountforfundsreceivedunderTitleIoftheJobTrainingPartnershipAct. Fundsareusedtoincreasethemployabilityofdislocatedworkersthroughclasromtrainingandonthe-jobtrainingprograms. 5%IncentiveFund-%['oacountforfundsreceivedunderTitleI-AandI-CoftheJobTraining PartnershipAct.Fundsareusedtoprovidemploymentandtrainingactivitiesforeligibleyouthand adultsand/oradministrativepurposes. TitleIliNationalReserveGrantFund-ToacountforfundsreceivedunderTitleIloftheJob TrainingPartnershipAct.Fundareusedtoincreasethemployabilityofdislocatedworkersinthe marineandshipbuildingindustriesthroughclasromtrainingandon-the-jobtrainingprograms. JobNetFund-ToacountforfundsreceivedundertheJobNetWorkforceDevelopmentNetwork. Fundsareusedtoprovidecomputerhardwareandsoftwaretoparticipantsekingreateracesto informationforselecting,changingorupgradingtheircarersthroughtheuseofjobvacancylistings, carerinformationandtrainingoportunities.

20 ThePrivateIndustryCouncilfortheTereboneConsortium, ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection) Ascts Cash DuefromtheStateofLouisiana Receivables-miscelaneous Duefromotherfunds Totalasets Liabilities Acountspayableand acruedexpenditures Duetotherfunds Totaliabililies FundBalances Unreserved June30,198 IAFund $29,846 68, ,179 $14,010 $103,941 10,069 14,010 Totaliabilitiesandfundbalances$14, IBFund $ 58,184 $58,184 $50,62 7,562 58,184 $58,184 ICFund $ 61,926 5,203 $67,129 $67,129 67,129 $67,129 8%Fund $ 36,802 $36,802 $34,10 2,692 36,802 $36,802

21 Statement1 TitleIN 5%Incentive Reserve Fund Grant Fund Fund National TitleIFund JobNet Total 30,167 $4,925 $21,738 $29, ,030 4, , $34,851 $182 $4,925 $21,738 $37,821 $34,851 $182 $ 4,925 $21,738 $312,573 25,248 34, ,925 21,738 37,821 $34,851 $182 $4,925 $21,738 $37,821

22 TilePrivateIndustryCouncilfortheTereboncConsortium, ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection) Revenues lntergovernmental: StateofLouisiana: DepartmentofLabor DepartmentofEducation Totalrevenues For'theyearended,June3~,19B Expenditures-EconomicDevelopment andasistance Curent: Administrative: Personalservices Supliesandmaterials Otherservicesandcharges Repairsandmaintenance Capitalexpenditures Training: Personalservices Supliesandmaterials Otherservicesandcharges Repairsandmaintenance Capitalexpenditures Trainingrelated/suportiveservice Personalservices Supliesaodmaterials Otherservicesandcharges Repairsandmaintenance Capitalexpenditures Totalexpenditures ExcesofRevenuesOverExpenditures FundBalances Beginingofyear Endofyear IAFund I1BFund ICFund 868,731$37,927$523, ,731 8,59 1,623 48,507 2, , ,256 85, ,318 12,470 39,167 37,927 27,756 1,352 15,283 1, ,471 64,843 5,951 27,483 4, ,657 74, , , ,08 27,197 51,089 17,4153 8%Fund $49,514 49,514 7, ,501 37,235 1,396 2, , , ,38 41,049 72,342 3,104 58,674 3,402 19, , ,731 28, ,128 37,927 49,782 1,510 18,573 1,793 5,743 7, (36) (36) 49,514

23 Statement2 Fund TitleI 5%1- centive Fund Title1IN National Reserve Grant Fund Net Fund Job Total $308,083 $1,250 $4,925 $39,65 $2,234, ,250 4, ,283,752 49,514 21, ,180 16, ,148 1,752 2, ,179 2, ,604 6,238 39,572 42,080 4, ,19 5, ,45 24,046 75,893 25,184 6,25 61, , , , ,930 4, ,803 69,170 1,382, ,708 2, , ,083 17, ,65 7,452 1,250 4,925 61,45 5,195 39,65 2,283, ,516

24 E FCERTIFIEDP

25 BourgeoisBenet PL L POSEFI WITHGOVERNMENTAUDITINGSTANDARD~ RD TotheBoardofDirectorsofThePrivateIndustry CouncilfortheTereboneConsortium, ServiceDeliveryAreaThirty-One,Inc., Houma,Louisiana. fundandacountgroupfinancialstatementsoftheprivateindustrycouncilfortheterebone Wehaveauditedthegeneral-purposefinancialstatementsandthecombiningandindividual Consortium,ServiceDeliveryAreaThirty-One,Inc.,(theP.I.C.),acomponentunitofLafourcheParish Council,StateofLouisiana,asofandfortheyearendedJune30,198,andhaveisuedoureport thereondateddecember4,198.weconductedourauditinacordancewithgeneralyacepted auditingstandardsandthestandardsaplicabletofinancialauditscontainedingovernmentauditing Standards,isuedbytheComptrolerGeneraloftheUnitedStates. Compliance financialstatementsarefreofmaterialmistatement,weperformedtestsofitscompliancewith AspartofobtainingreasonableasuranceaboutwhethertheP.I.C.'sgeneral-purpose adirectandmaterialefectonthedeterminationofinancialstatementamounts.however,providing certainprovisionsoflaws,regulations,contractsandgrants,noncompliancewithwhichcouldhave arerequiredtobereportedundergovernmentauditingstandards anopiniononcompliancewiththoseprovisionswasnotanobjectiveofourauditand,acordingly,we donotexpresuchanopinion.theresultsofourtestsdisclosednoinstancesofnoncompliancethat InternalControlOverFinancialReporting financialreportinginordertodetermineourauditingproceduresforthepurposeofexpresingour Inplaningandperformingouraudit,weconsideredtheP.I.C.'sinternalcontrolover opiniononthegeneral-purposefinancialstatementsandnotoprovideasuranceontheinternal controloverfinancialreporting.ourconsiderationoftheinternalcontroloverfinancialreporting 1340Wcsl"hmnclBlvd,Suile430 P,OBox2168 ]Iotnua,I,A CertifiedPublic 20 Phone(504) I:a~(504) AI,imiledLiabilityCompany AcountantsIConsulcanls P.O.Box606~)0 NewOrleans,I,A IlcritagePlaza,Suilc80 P]lOUe(504) /WestSecondStlel I'OBox1205 Fax(504) "1hibodaux,I.A Phf,ue(504)

26 wouldnotnecesarydisclosealmatersintheinternalcontroloverfinancialreporlingthatmightbe materialweakneses.amaterialweaknesisaconditioninwhichthedesignoroperationofoneor moreoftheinternalcontrolcomponentsdoesnotreducetoarelativelylowleveltheriskthat mistatementsinamountsthatwouldbematerialinrelationtothefinancialstatementsbeingaudited mayocurandnotbedetectedwithinatimelyperiodbyemployesinthenormalcourseofperforming theirasignedfunctions.wenotednomatersinvolvingtheinternalcontroloverfinancialreporting anditsoperationsthatweconsidertobematerialweakneses. LegislativeAuditorfortheStateofLouisianandvariousfederalandstateauditagencies.However, ThisreportisintendedfortheinformationoftheBoardofDirectors,management,the thisreportisamaterofpublicrecordanditsdistributionisnotlimited. CertifiedPublicAcountants Houma,La., December4,198 21

27 BourgeoisBenet TOEACHMAJORPROGRAMANDONINTERNALCONTROLOVER REPORTONCOMPLIANCEWITHREOUIREMENTSAPLICABLE COMPLIANCEINACORDANCEWITHOMBCIRCULARA-13 TotheBoardofDirectorsofThePrivateIndustry CouncilfortheTereboneConsortium, ServiceDeliveryAreaThirty-One,Inc., Houma,Louisiana. Compliance Consortium,ServiceDeliveryAreaThirty-One,Inc.,(theP.I.C.),acomponentunitofLafourcheParish WehaveauditedthecomplianceofThePrivateIndustryCouncilfortheTerebone Council,StateofLouisiana,withthetypesofcompliancerequirementsdescribedintheU.S.Ofice ofmanagementandbudget(omb)circulara-13compliancesuplementhatareaplicabletoeach ofitsmajorfederalprogramsfortheyearendedjune30,198.thep.i.c.'smajorfederalprograms areidentifiedinthesumaryofauditor'sresultsectionoftheacompanyingscheduleofindingsand questionedcosts.compliancewiththerequirementsoflaws,regulations,contractsandgrants aplicabletoeachofitsmajorfederalprogramsistheresponsibilityofthep.i.c.'smanagement.our responsibilityistoexpresanopiniononthep.i.c.'scompliancebasedonouraudit. standards;thestandardsaplicabletofinancialauditscontainedingovernmentauditingstandards, isuedbythecomptrolergeneraloftheunitedstates;andombcirculara-13.auditsofstates Weconductedourauditofcomplianceinacordancewithgeneralyaceptedauditing LocalGovernmentsandNon-ProfitOrganizations.ThosestandardsandOMBCircularA-13require thatweplanandperformtheauditobtainreasonableasuranceaboutwhethernoncompliancewith thetypesofcompliancerequirementsreferedtoabovethatcouldhaveadirectandmaterialefecton amajorfederalprogramocured.anauditincludesexamining,onatestbasis,evidenceabouthe P.I.C.'scompliancewiththoserequirementsandperformingsuchotherproceduresasweconsidered necesaryinthecircumstances.webelievethatourauditprovidesareasonablebasisforouropinion. OurauditdoesnotprovidealegaldeterminationontheP.I.C.'scompliancewiththoserequirements. toabovethatareaplicabletoeachofitsmajorfederalprogramsfortheyearendedjune30,198. Inouropinion,theP.I.C.complied,inalmaterialrespects,withtherequirementsrefered 1340West]unclBird,Suile430 POBox2168 }][l~,ia CerlifiedPublic I']lo1~e(5(t4) Fax(504) Al.itnilcd1.labilityCon~pany AcounlantsIConsnltants P.O.Box6060 NewOrleans,LA IcrltagePla~a,Sultc80 Phone(504) WeslSecondShel P.O.Box1205 Yax(504) "lhibodaux.1,a I'l<~Ile(504)47-52zl3

28 InternalControlOverCompliance intemalcontrolovercompliancewithrequirementsoflaws,regulations,contractsandgrants ThemanagementoftheP.I.C.isresponsibleforestablishingandmaintainingefective aplicabletofederalprograms.inplaningandperformingouraudit,weconsidcrcdthep.i.c.'s internalcontrolovercompliancewithrequirementsthateouldhaveadirectandmaterialefectona majorfederalprograminordertodetermineourauditingproceduresforthepurposeofexpresingour opiniononcomplianceandtotestandreportontheinternalcontrolovercomplianceinacordance withombcirculara-13. matersintheinternalcontrolthatmightbematerialweakneses.amaterialweaknesisacondition Ourconsiderationoftheinternalcontrolovercompliancewouldnotnecesarilydiscloseal inwhichthedesignoroperationofoneormoreoftheinternalcontrolcomponentsdoesnotreduceto arelativelylowleveltheriskthatnoncompliancewithaplicablerequirementsoflaws,regulations, contractsandgrantsthatwouldbematerialinrelationtoamajorfederalprogrambeingauditedmay ocurandnotbedetectedwithinatimelyperiodbyemployesinthenormalcourseofperformingtheir asignedfunctions.wenotednomatersinvolvingtheinternalcontrolovercomplianceandits operationthatweconsidertobematerialweakneses. LegislativeAuditorfortheStateofLouisianandvariousfederalandstateauditagencies,However, ThisreportisintendedfortheinformationoftheBoardofDirectors,management, thisreportisamaterofpublicrecordanditsdistributionisnotlimited. Houma,La., December4,198 CertifiedPublicAcountants

29 ThePrivateIndustryCouncilfortheTereboneConsortium, ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection) FortheyearendedJune30,198 ThroughGrantor/ProgramTitle FederalGrantor/Pas Federal CFDA Agencyor Number Grantor'sNumber PasThrough, Expenditures Federal DepartmentofLabor Pa~ThrouphPavment~ l.ouisianadenarlmentofl,ahn JobTrainingPartnershipActTitleI-A JobTrainingPartnershipActTitleI-B 96/97-31-I-A JobTrainingPartnershipActTitleI-C 96/97-31-INC $ 868, / B JobTrainingPartnershipActTitleI1-N 96/97-3I-I-C 37,927 1, N 96/97-31-I 523, ,083 4,925 1,olisianaDenarlrnentofEducation JobTrainingPartnershipActTitleIDA ,514 Total $2,24,087 24

30 ThePrivateIndustryCouncilfortheTereboneConsortium, D ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection) Note1-BASISOFPRESENTATION Theacompanyingscheduleofexpendituresofederalawardsincludesthefederalgrant June30,198 activityoftheprivateindustrycouncilforthetereboneconsortium,servicedelivery AreaThirty-One,Inc.andispresentedontheacrualbasisofacounting.Theinformation inthischeduleispresentedinacordancewiththerequirementsofombcirculara-13, AuditsofStates,LocalGovernments,andNon-ProfitOrganizations.Therefore,some amountspresentedinthischedulemaydiferfromamountspresentedin,orusedinthe preparationof,thegeneral-purposefinancialstatements. Note2-FINDINGSOFNONCOMPLIANCE Therewerenofederalawardfindingsorquestionedcostsreporteduringtheauditforthe yearendedjune30,198. Note3-DATACOLECTIONFORM ThereconciliationoftheScheduleofExpendituresofFederalAwardstotheawards expendedasreportedinthedatacolectionformisasfolows: CFDA Number PasThroughGrantor Grantor'sNumber PasThrough Expenditure Federal LouisianaDepartmentofLabor: JobTrainingPartnershipActTitleI-N N 96/ $308,083 4, JobTrainingPartnershipActTitleI-A JobTrainingPartnershipActTitleI-B JobTrainingPartnershipActTitleI-C 96/97-31-I-A $313,08 96/ NC $868,731 96/97-31-I-B LouisianaDepartmentofEducation: 96/97-31-I-C 37,927 1, , JobTrainingPartnershipActTitleI-A ,514 $1,931,079

31 ThePrivateIndustryCouncilfortheTereboneConsortium, ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection) FortheyearendedJune30,198 SectionISumaryofAuditor'sResults a)financialstatements Typeofauditor'sreportisued:unqualified Internalcontroloverfinancialreporting ~Materialweaknes(es)identified? ~Reportablecondition(s)identifiedthatarenot consideredtobematerialweakneses? _ yesxno Noncompliancematerialtofinancialstatementsnoted? yesxnoncreported yesxno b)federalawards Internalcontrolovermajorprograms ~Materialweaknes(es)identified? ~Reportablecondition(s)identifiedthatarenot consideredtobematerialweakneses? yesxnonereported yesxno Typeofauditor'sreportisuedoncomplianceformajorprograms:unqualified Anyauditfindingsdisclosedthatarerequiredtobe reportedinacordancewithsection510(a)of CircularA-13? _yesxno c)identificationofmajorprograms CFDANumber(s) eoff JobTrainingPartnershipActTitle 26

32 (Continued) ThePrivateIndustryCouncilfortheTereboneConsortium, ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection) FortheyearendedJune30,198 SectionISumaryofAuditor'sResults(Continued) DolarthresholdusedtodistinguishbetwentypeA Auditequalifiedaslow-riskaudite? andtypebprograms: $30,0 Section1IFinancialStatementFindings Therewerenofinancialstatementfindingsreporteduringtheauditofthefinancialstatementsfor theyearendedjune30,198. SectionIFederalAwardFindingsandQuestionedCosts Therewerenofederalawardfindingsorquestionedcostsreporteduringtheauditfortheyear endedjune30,

33

34 ThePrivateIndustryCouncilfortheTereboneConsortium, ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection) FortheyearendedJune30,198 SectionInternalControlandComplianceMaterialtotheGeneral-PurposeFinancial Statements InternalControl NomaterialweakneseswerereporteduringtheauditfortheyearendedJune30,197. NoreportableconditionswerereporteduringtheauditfortheyearendedJune30,197 Compliance Nocompliancefindingsmaterialtothefinancialstatementswerereporteduringtheauditfor theyearendedjune30,197. SectionInternalControlandComplianceMaterialtoFederalAwards TherewerenofindingsorquestionedcostreporteduringtheauditfortheyearendedJune30, 197. SectionI1ManagementLeter AmanagementleterwasnotisuedinconectionwiththeauditfortheyearendedJune30,197 28

35 ThePrivateIndustryCouncilfortheTereboneConsortium, ServiceDeliveryAreaThirty-One,Inc. (d/b/atheworkconection) FortheyearendedJune30,198 SectionInternalControlandComplianceMaterialtotheGeneral-PurposeFinancial Statements InternalControl NomaterialweakneseswerereporteduringtheauditfortheyearendedJune30,198. NoreportableconditionswerereporteduringtheauditfortheyearendedJune30,198 Compliance Nocompliancefindingsmaterialtothefinancialstatementswerenoteduringtheauditforthe yearendedjune30,198. SectionInternalControlandComplianceMaterialtoFederalAwards TherewerenofindingsorquestionedcostsreporteduringtheauditfortheyearendedJune30, 198. SectionIManagementLeter AmanagementleterwasnotisuedinconectionwiththeauditfortheyearendedJune30,198 29