BOBBIE L. HOWARD, CPA A PROFESSIONAL ACCOUNTING CORPORATION

Transcription

1 BBBIE L. HWARD, CPA A PRFESSINAL ACUNTING RPRATIN 921 Church St-Rear Entrance Phne: (985) Huma, 1A Fax: (985) B. W. PER, RMC 3400 EARHART BLVD. NEW RLEANS, LA T THE BARD F DIRECTRS INDEPENDENT AUDIT REPRT FR THE YEAR ENDED SEPTEMBER 30, 2004 Und^r prvisins f state law, this reprt is a public dcument Acpy f the reprt has been submitted t the entity and ther apprpriate public fficials. The reprt is available fr public inspectin at the Batn Ruge ffice f the Legislative Auditr and, where apprpriate, at the ffice f the parish clerk f curt. Release Date.

2 B. W. PER RMC 3400 EARHART BLVD. NEW RLEANS, LA TABLE F NTENTS Page Independent Auditr's Reprt 1 FINANCIAL STATEMENTS Statement f Financial Psitin 3 Statement f Activities 4 Statement f Cash Flw 5 Statement f Functinal Expenses 6 Ntes t Financial Statements 7 MPLIANCE AND INTERNAL NTRL REPRTS Independent Auditr's Reprt f Cmpliance and n Internal Cntrl ver Financial Reprting Based n An Audit f Financial Statements Perfrmed in Accrdance with Gvernment Auditing Standards 12 Independent Auditr's Reprt n Cmpliance with Requirements Applicable t Each Majr Prgram and Internal Cntrl ver Cmpliance in Accrdance with MB Circulatin A SUPPLEMENTARY INFRMATIN Schedule f Federal Financial Assistance 16 Schedule f Findings and Questin Cst 17 Summary f Schedule f Prir Audit Findings 22 Crrective Actin Plan 23 Management Letter 27

3 BBBIE L. HWARD, CPA ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^HM^B^HI^H^B BHHMBHHHBBH^Bm^^^^^^^^^^^^^"^^ A PRFESSINAL ACUNTING RPRATIN 921 Church St.-Rear Entrance Huma, LA Phne:(985) Fax: (985) INDEPENDENT AUDITR'S REPRT T the Bard f Directrs B. W. PER, RMC 3400 EARHART BLVD. NEW RLEANS, LA We have audited the accmpanying statement f financial psitin f the B. W. PER, RMC "a nnprfit rganizatin" as f SEPTEMBER 30, 2004 and the related statements f activities and cash flws fr the year then ended. These financial statements are the respnsibility f B. W. PER, RMC's management. ur respnsibility is t express an pinin n these financial statements based n ur audit. We cnducted ur audit in accrdance with auditing standards generally accepted in the United States f America and the standards applicable t financial audits cntained in Gvernment Auditing Standards, issued by the Cmptrller General f the United States. Thse standards require that we plan and perfrm the audit t btain reasnable assurance abut whether the financial statements are free f material misstatement. An audit includes examining, n a test basis, evidence supprting the amunts and disclsures in the financial statements. An audit als includes assessing the accunting principles used and significant estimates made by management, as well as evaluating the verall financial statement presentatin. We believe that ur audit prvides a reasnable basis fr ur pinin. In ur pinin, the financial statements referred t abve present fairly, in all material respects, the financial psitin f B. W. PER, RMC as f SEPTEMBER 30, 2004, and the changes in net assets and its cash flws fr the year then ended in cnfrmity with generally accepted accunting principles. In accrdance with Gvernment Auditing Standards, we have als issued ur reprt dated January 28,2005 n the cnsideratin f B. W. PER, RMC internal cntrl ver financial reprting and ur tests f its cmpliance with certain prvisins f laws, regulatins, cntracts and grants. That reprt is an intricate part f an audit perfrmed in accrdance with Gvernment Auditing Standards and shuld be read in cnjunctin with this reprt in cnsidering the results f ur audit.

4 ur audit was perfrmed fr the purpse f frming an pinin n the basic financial statements f B. W. PER, RMC taken as a whle. The accmpanying schedule f expenditures f federal awards is presented fr the purpse f additinal analysis as required by U.S. ffice f Management and Budget Circular A-133, Audits f States, Lcal Gvernments and Nn Prfit rganizatins, and is nt a required part f the basic financial statements. Such infrmatin has been subjected t the auditing prcedures applied in the audit f the basic financial statements and, in ur pinin, is fairly stated, in all material respects in relatin t the basic financial statements taken as a whle. fbbie L Hward Certified Public Accunt January 28, 2005

5 B. W. PER, RMC STATEMENT F FINANCIAL PSITIN SEPTEMBER 30, 2004 ASSETS Current Assets Cash ( Nte A & F) Grant Receivable (Nte A & B) ther Receivable ther Current Assets $ 1,098,111 70,765 21,664 $ 7,810 Ttal Current Assets Prperty, Plant and Equipment Net f Accumulated Depreciatin f $615,709 ( Nte A & D) $ 1,198, ,522 Ttal Assets $ 1,489,872 LIABILITIES AND NET ASSETS Current Liabilities Due t Emplyee Payrll Taxes Payable Accunts Payable ther Current Liabilities ,199 11,523 Ttal Current Liabilities $ 31,722 Net Assets Unrestricted 1,458,150 Ttal Net Assets Ttal Liabilities and Net Assets $ 1,458,150 $ 1,489,872 See auditr's reprt and ntes t the financial statements.

6 B. W. PER, RMC STATEMENT F ACTIVITIES FR THE YEAR ENDED SEPTEMBER 30, 2004 REVENUES Revenues, Gains, and ther Supprt Management Cntract HUD Cmprehensive Grant Day Care Resident Services Rss Grant Interest Incme Ttal Revenues, Gains and ther Supprt Unrestricted $ 3,688, , ,990 5,201 81, $ 4,186,782 EXPENSES Management Cntract HUD Cmprehensive General Administrative Day Care Rss Grant Ttal Expenses Change in Net Assets Adjustments t Net Assets Net Assets, Beginning f year Net Assets, End f year $ 3,863, ,680 68, ,701 96,667 $ 4,627,491 $ (440,709) (9.420) $ 1,908,279 $ 1,458,150 See auditr's reprt and ntes t the financial statements.

7 B. W. PER, RMC STATEMENT F CASH FLWS FR THE YEAR ENDED SEPTEMBER 30, 2004 Cash Flws frm perating Activities: Net Assets $ (440,709) Adjustments t recncile net incme t net cash prvided by perating activities: Depreciatin Expense 151,970 Change in Receivables $ 106,884 Change in ther Current Assets 8,372 Change in Payable (30,050) Change in ther Current Liabilities (54,841) Ttal Adjustments $ 182,336 Net Cash Prvided by perating Activities: (258,372) Cash Flws frm Investment Activities Purchase f Fixed Assets (106,301) Net Cash Prvided by Investing Activities (106,301) Cash Flws frm Financing Activities: Net Assets (9,421) Net Cash Prvided by Financing Activities: (9,421) Net Increase (Decrease) in Cash (374,194) Cash at Beginning f Perid 1,472,205 Cash at End f Perid $ 1,098,111 See auditr's reprt and ntes t financial statements.

8 M auditr' t ^ " a 0) D Q. D 01 (D (A r» p* D- ^» 5' a> D SL w 5T P^» 3 3 p* W H r+ Q> m X nses &» l w l r cn l «x r *! W 4k ^sl Vi ^ t J ^ p^ 5L T3 0^ U j* 3' (Q m p </> -* cn 00 l V l ^j in r cn l 00 * ** <r» l -^ r^i 4A Vl l t/» t D a fl)' ' 3 ) "-sj cn 4*. r 4*. -si 00 "D5"<SSH>Hm"DHHTI>m C^ ^ 5) fd m Q) c^n. ^0)CI^Q.=3? ^ fit" - Sf 3gfS -i.t Qi^S-cD^^r-^^^ 5- ^ ^ ^^ ^ ^ *^ lu J *** r**i r^\ ^v WU vt tf\ ^^ m =i~l -!,n^1m - --if_ rn ^: - *<r ««8sl "8sg>SiSl"g 8 JTI^ m5«sx.m;;;^- 3 ;;, - 3^. i-88 ^r i. 73 ^ 1 s- n 8 w SKS. ST/-0 2 7J - (/Jf-i 11 i sill fs?i w cn F t-~ <fl CL S i_f ^^ ' V* l*-4* fl\ *i* ft) 03 C M D cn cn C± *-^ cn» -» 4^ r -» r -> cc-sjr r-^rrc4^cai c -sjrcn4^-- i '-i^cc7)-».c73ccn cn rcnr ccncnrcc-sirr -» ccncjc cccnr-jm4^--j -J f-^ -k-sl--jnjtd4!«.4^ M -^-^ "_j. J U ^ -» r r -^ 04^.0 -si -sib r c-jccf) 4^- C D C - - J 4 ^ r c pcnc c-sirc ccnai ) b b K r cnr c >.-SI rccn -* ra>4^a)cd -> t/) &) H m3 < (D (0 r* J "r^i > u r cn 00 us cn ~D 03 < ~i Q} X C/) r _i C/> 0) 03 ^ " cn t M cn '-si a> ~sj t r -t>. p cn -si t 3 <-h QJ _^ 3 > a 3 5' ^ \U TJ < 3 p* ' 3 fi) 3 0) CQ X c D 0 3 flj 0) *< T3 CC 3 fi)»< -n 7) H X m -S "V m > 7) m z D m (fl m --i m 5 0) m T1 At p r Jh H> H m g g H < 0 ^ /^ -8*- / i ^ "0 2 m ^ 73 0 Z 7J > S r- m X TJ m z C/) m C/) ( at l Nl J^ J r -> r cn u V r b r cn cn b> T 3 <-h 73 (A tfi / f\ \ft *fi TT* w < t *> l r ^i V ^ r ^i 1 cn * -s -* 4i> r -^ -^ c - i aicc-sir-».rr4i».rrccncncc caicnrct)4i'->-->.ja.4i.-^cncnccnr -1.4^-sicnr-sJ-i.crcncnrcD^Jcc C^C^-^J^CnCTJCn^ cc-si->.c-^-i-a)c--jrrccr J cn IA 00 r k 00 cn r.iu P b ~sj -si m X 0 3^^ V) W H c* 2L

9 B. W. PER, RMC NTES T THE FINANCIAL STATEMENTS SEPTEMBER 30, 2004 NTE A - SUMMARY F SIGNIFICANT ACUNTING PLICIES 1. rganizatin B. W. PER, RMC is a nn-prfit rganizatin established primarily t prvide service in the frm f prperty management fr the B. W. Cper Apartments. ther gals invlve husing rehabilitatin, imprving public facilities and revitalizatin f the neighbrhd ecnmic cnditin by prviding decent husing, suitable living envirnments and expanded ecnmic pprtunities fr residents f B. W. Cper Apartments. 2. Presentatin f Financial Statement The accunting financial statements are presented n the accrual basis f accunting. Accrdingly, revenue is recrded when earned and expenses are recrded when incurred. 3. Basis f Reprting The Agency has adpted SPAS N. 117 which establishes standards fr external financial reprting by nt-fr-prfit rganizatins and requires that resurces be classified fr accunting and reprting purpses int three net assets categries (i.e. unrestricted net assets, temprarily restricted net assets and permanently restricted net assets) accrdingly t external dnr impsed restrictins. A descriptin f the three (3) net assets categries is as fllws: Unrestricted Net Assets include the fllwing: Unrestricted Net assets include funds nt subject t dnr-impsed stipulatins. The revenues received and expenses incurred in cnducting the missin f the Agency are included in this categry. The Agency has determined that any dnr impsed restrictins fr current r develping prgrams and activities are generally met within the perating cycle f the Agency, and therefre, the Agency's plicy is t recrd these assets as unrestricted. Temprarily restricted net assets include realized gains and lsses, investment incme and gifts, apprpriatins and cntributins fr which dnr impsed restrictins have nt been met. Permanently restricted net assets are cntributins which are required by the dnr impsed restrictin t be invested in perpetuity and nly the incme be made available fr prgram peratins in accrdance with the

10 dnr restrictins. Such incme is reflected in temprarily restricted assets until utilized fr dnr impsed restrictins. 4. Cash and Cash Equivalents Fr purpses f the statement f cash flws, the Agency cnsiders all highly liquid investments purchased with a maturity f three mnths r less t be cash equivalents. 5. Prperty. Plant and Equipment Prperty, Plant and Equipment is stated at cst, if purchased, r at fair market value at the date f gift, if dnated. Depreciatin is prvided fr in amunts sufficient t relate the cst f depreciable assets t peratins ver their estimated service lives, n the straight-line-methd. Depreciatin expense fr the year ended September 30, 2004 ttaled $151, Revenue Recgnitin Fr financial reprting purpses, the Agency recgnizes revenues as earned. 7. Functinal Allcatin f Expenses The csts fr prviding fr varius prgrams and ther activities have been summarized n a functinal basis in the statement f activities. Accrdingly, certain cst have been allcated amng the prgrams and supprting services benefited. 8. Estimates The preparatin f financial statements in cnfrmity with GAAP requires the use f management's estimates affect the reprted amunts f assets and liabilities and disclsure f cntingent assets and liabilities at the date f the reprted financial statements and the reprted amunts f revenue and expenses during the reprted perid. Actual results culd differ frm the estimates. 9. The agency has a 401 K plan fr eligible emplyees. Cmpensated absences were immaterial t these financial statements.

11 NTE B - GRANT RECEIVABLE Grant receivable fr B. W. PER, RMC cnsists f the fllwing: Cmprehensive Grant $70,765 Ttal Grant Receivables $70,765 NTE C - EXEMPT STATUS The crpratin is tax exempt under prvisin f Sectin 501 (c) (3) f the Internal Revenue Cde. The crpratin meets all f the applicable prvisins f the law. NTE D - PRPERTY AND EQUIPMENT Prperty and Equipment cnsisted f the fllwing at September 30, 2004 Furniture & Equipment $ 755,957 Cmputer Equipment 60,891 Lawn Equipment 33,341 Aut 57,042 $ 907,231 Depreciatin: (Less Accumulated) $ 615,709 Ttal Prperty and Equipment $ 291,522 NTE E - MPENSATIN T DIRECTRS The resident cuncil (bard) received a stipend f $ per mnth t cver expenses assciated with carrying ut their duties as directrs. The ttal amunt paid t bard is $11,

12 NTE F - REVENUES, GAINS, AND THER SUPPRT Management Cntract $ 3,688,054 HUD Cmprehensive Grant 185,116 Day Care 221,990 Pregnancy Preventin -0- Residential Services 5,201 Rss Grant 81,241 Management Imprvement Fund -0- Interest Incme 5,180 Ttal Revenues, Gains and ther Supprt $ 4,186,782 Includes Funding Frm The State f Luisiana: ffice f Family Supprt $ 101,303 Fd & Nutritin $ 29,332 NTE G - CASH IN BANK At year end the cash balance was as fllws: perating $ 722,251 Administrative Accunt 30,722 Payrll 28,970 Keeping it Real 3,584 Cmprehensive Grant 62,488 Day Care Center 95,738 Ecnmic Develpment 2,693 Hmewnership 122,190 Day Care Fd and Nutritin 14,118 Rss Ttal $1,098,111 B.W. Cper, RMC has a cash balance held in reserve in the amunt f $956, fr three mnths expenses as required by HUD. 10

13 NTE H - ENMIC DEPENDENCY The agency received the majrity f its revenue frm cntracts with the Husing Authrity f New rleans, pass thrugh funds frm the Department f Husing and Urban Develpment. If significant budget cuts r legislative changes are made at the federal, state r city level, the amunt f funding culd be reduced significantly and have an adverse impact n its current prgram. Management is nt aware f any actins that will adversely affect the funding it will receive in the next fiscal year. Hwever, due t federal budget cuts the Drug Eliminatin Prgram has been discntinued. NTE I - RETIREMENT PLANS Substantially all f the Agencies emplyees are eligible fr a 401 K plan. During the current year the Agency matched $42, The agency did nt have a material amunt f vacatin fr cmpensated absences. NTE J - MMITMENTS AND NTENGENCIES As f September 30, 2004 the ttal remaining perating lease payments under a nn-cancelable perating lease, which pertains t vehicles are as fllws: YEAR TTAL PAYMENTS ,681 Rental expense under perating leases was $24,811 fr the year ended September 30, NTE K - REVENUES The Day Care Center revenues was reduced due t a reductin in the Child Care System Prgram this caused B. W. Cper, RMC t absrb sme perating cst. The Drug Eliminatin Prgram was discntinued which caused B. W. Cper, RMC t absrb salaries and ther csts fr the RS Department. 11

14 BBBIE L. HWARD, CPA A PRFESSINAL ACUNTING RPRATIN 921 Church St.-Rear Entrance Huma, LA Phne:(985) Fax: (985) INDEPENDENT AUDITR'S REPRT N MPLIANCE AND N INTERNAL NTRL VER FINANCIAL REPRTING BASED N AN AUDIT F FINANCIAL STATEMENTS PERFRMED IN ACRDANCE WITH GVERNMENT AUDITING STANDARDS T The Bard f Directrs B. W. PER RMC 3400 EARHART BLVD New rleans, LA We have audited the financial statements f B. W. PER, RMC as f and fr the year ended SEPTEMBER 30, 2004, and have issued ur reprt theren dated January 28, We cnducted the audit in accrdance with U.S. generally accepted auditing standards and the standards applicable t financial audits cntained in Gvernment Auditing Standards, issued by the Cmptrller General f the United States. Cmpliance As part f btaining reasnable assurance abut whether the B. W. PER, RMC financial statements are free f material misstatement, we perfrmed tests f its cmpliance with certain prvisins f laws, regulatins, cntracts and grants, nncmpliance with which culd have a direct and material effect n the determinatin f financial statement amunts. Hwever, prviding an pinin n cmpliance with thse prvisins was nt an bjective f ur audit and accrdingly, we d nt express such an pinin. The results f ur tests disclsed n instances f nncmpliance that are required t be reprted under Gvernment Auditing Standards. Internal Cntrl ver Financial Reprting In planning and perfrming ur audit, we cnsidered B. W. PER, RMC internal cntrl ver financial reprting in rder t determine ur auditing prcedures fr the purpse f expressing ur pinin n the financial statements and nt t prvide assurance n the internal cntrl ver financial reprting. Hwever, we nted certain matters invlving the internal cntrl ver financial reprting and its peratin that cnsider being reprtable cnditins. Reprtable cnditins invlve matters cming t ur attentin relating t significant deficiencies in the design r peratin f the internal cntrl ver financial reprting that, in ur judgment, culd adversely affect B. W. PER, RMC ability t recrd, prcess summarize, and reprt financial data cnsistent with the 12

15 assertins f management in the accmpanying schedule f findings and questined csts as item # 04-01, and A material weakness is a cnditin in which the design r peratin f ne r mre f the internal cntrl cmpnents des nt reduce t a relatively lw level the risk that misstatements in the amunts that wuld be material in relatin t the financial statements being audited may ccur and nt be detected within a timely perid by emplyees in the nrmal curse f perfrming their assigned functins. ur cnsideratin f the internal cntrl ver financial reprting wuld nt necessarily disclse all matters in the internal cntrl ver financial reprting that might be a material weakness. Item # 04-01, and is cnsidered t be a material weakness. This reprt is intended fr the infrmatin f the Bard and management f B. W. Cper, RMC, the Husing Authrity f New rleans, and the Legislative Auditr's f the State f Luisiana, federal, state and lcal awarding agencies and pass-thrugh agencies and is nt intended t be used by anyne ther then these specified parties. Hwever, under Luisiana Revised Statute 24:513, this reprt is distributed by the Legislative Auditr as public dcument. Bbbie L Hward Certified Public Accuntant January 28,

16 BBBIE L. HWARD, CPA A PRFESSINAL ACUNTING RPRATIN 921 Church St.-Rear Entrance Huma, LA Phne:(985) Fax: (985) INDEPENDENT AUDITR'S REPRT N MPLIANCE WITH REQUIREMENTS APPLICABLE T EACH MAJR PRGRAM AND N INTERNAL NTRL VER MPLIANCE IN ACRDANCE WITH MB CIRCULAR A-133 T The Bard f Directrs B. W. PER, RMC 3400 EARHARTBVLD. New rleans, LA Cmpliance We have audited the cmpliance f B. W. PER, RMC with the types f cmpliance requirements described in the U.S. ffice f Management and Budget (MB) Circular A-133 Cmpliance Supplement that are applicable t each f its majr prgrams fr the year ended September 30, B. W. PER, RMC majr federal prgrams are identified in the summary f the independent auditr's results sectin f the accmpanying schedule f findings and questined csts. Cmpliance with the requirements f laws, regulatins, cntracts and grants applicable t its majr federal prgram, is the respnsibility f B. W. PER, RMC management. ur respnsibility is t express an pinin n B. W. PER, RMC cmpliance based n ur audit. We cnducted ur audit f cmpliance in accrdance with U.S. Generally Accepted Auditing Standards; the standards applicable t financial audits cntained in Gvernment Auditing Standards, issued by the Cmptrller General f the United States, and ffice f Management f Budget (MB) Circular A-133, "Audits f States, Lcal Gvernments and Nn Prfit rganizatins". Thse standards and MB Circular A-133 require that we plan and perfrm the audit t btain reasnable assurance abut whether nncmpliance with the types f cmpliance requirements referred t abve that culd have a direct and material effect n a majr federal prgram ccurred. An audit includes examining, n a test basis, evidence abut B. W. PER, RMC cmpliance with thse requirements and perfrming such ther prcedures as we cnsidered necessary in the circumstances. We believe that ur audit prvides a reasnable basis fr such an pinin. ur audit des nt prvide a legal determinatin n B. W. PER, RMC cmpliance with thse requirements. Cmpliance with such prvisins is necessary, in ur pinin, fr B. W. PER, RMC t cmply with the requirements. 14

17 In ur pinin, B.W. PER, RMC cmplied, in all material respects, with the requirements referred t abve that are applicable t each f its majr federal prgrams fr the year ended September 30, Internal Cntrl ver Cmpliance The management f B. W. PER, RMC is respnsible fr establishing and maintaining effective internal cntrl ver cmpliance with the requirements f laws, regulatins, cntracts, and grants applicable fr federal prgrams. In planning and perfrming ur audit, We cnsidered B. W. PER, RMC internal cntrl ver cmpliance with requirements that culd have a direct and material effect n a majr federal prgram in rder t determine ur auditing prcedures fr the purpse f expressing ur pinin n cmpliance and t test and reprt n the internal cntrl ver cmpliance in accrdance with MB Circular A-133. We nted certain matters invlving the internal cntrl ver cmpliance and its peratin that we cnsider t be reprtable cnditins. Reprtable cnditins invlve a matter cming t ur attentin relating t significant deficiencies in the design r peratin f the internal cntrl ver the federal prgram in accrdance with the applicable requirements f laws, regulatins, cntracts, and grants. Reprtable cnditins are described in the accmpanying Schedule f Findings and Questined Csts as item # 04-01, 04-02, and A material weakness is a cnditin in which the design r peratin f ne r mre f the internal cntrl cmpnents des nt reduce t a relatively lw level the risk that nncmpliance with applicable requirements f laws, regulatins, cntracts, and grants that wuld be material in relatin t a majr federal prgram being audited may ccur and nt be detected within a timely perid by emplyees in the nrmal curse f perfrming their assigned functins. ur cnsideratin f the internal cntrl ver cmpliance wuld nt necessarily disclse all matters in the internal cntrl that might be material weaknesses. Hwever, we nted matters invlving the internal cntrl ver cmpliance and its peratin that we cnsider t be material weaknesses identified in the Schedule f Findings and Questined Csts as Item # 04-01, 04-02, and This reprt is intended fr the infrmatin f the Bard and management B. W. PER, RMC, the Husing Authrity f New rleans, the Legislative Auditr f the State f Luisiana, Federal, state and lcal awarding agencies and pass-thrugh agencies and is nt intended t be used by anyne ther than thse specified parties. Hwever, under Luisiana Revised Statue 24:513, this reprt is distributed by the Legis^tive Auditr as a public dcument. Bb me L. Hward Certified Public Accuntant January 28,

18 B.W. PER, RMC SCHEDULE F FEDERAL FINANCIAL ASSISTANCE FR THE YEAR ENDED SEPTEMBER 30, 2004 Federal Grant/ Pass-Thru Grantr/ Prgram Title Federal CFDA Number Agency Pass Thru Federal Expense U.S Department f Husing And Urban Develpment Pass-thrugh frm Husing Authrity f New rleans $4,114,996 U.S. Department f Agriculture (USDA)-Fd & Nutritin Pass-thrugh frm State f LA ,332 U.S. Department f Health And Human Services Pass-thrugh frm State f La. Department f Scial Services ,303 TTAL $ 4,245,631 16

19 B. W. PER, RMC SCHEDULE F FINDINGS AND QUESTINED ST SUMMARY F THE INDEPENDENT AUDITR'S RESULTS FR THE YEAR ENDED SEPTEMBER 30, The auditr's reprt expresses an unqualified pinin n the financial statements f B. W. PER, RMC. 2. Three reprtable cnditins disclsed during the audit f the financial statements and that cnditin is reprted as a material weakness in the schedule f findings and questined cst. 3. N instances f nncmpliance material t the financial statements f B. W. PER, RMC which wuld be required t be reprted in accrdance with Gvernment Auditing Standards, were disclsed during the audit. 4. Three reprtable cnditins disclsed during the audit f the majr federal award prgram is reprted in the schedule f findings and questined cst. The cnditins are reprted as a material weakness. 5. The auditr's reprt n cmpliance fr the majr federal award prgrams fr B. W. PER, RMC expresses an unqualified pinin. 6. Audit findings relative t the majr federal award prgrams fr B. W. PER, RMC are reprted in this Schedule. 7. The prgram tested as a majr prgram. Pass Thru Number Name f Federal Prgram Management Cntract 8. The dllar threshld used t distinguish between Type A and B Prgrams as described in MB Circular A-133, Sectin 520(b) are as fllws: Prgram Amunt Type A $300, B. W. PER, RMC des nt qualify as a lw risk auditee, under MB Circular A-133, Sectin

20 FINDINGS-FINANCIAL STATEMENT AUDIT REPRTABLE NDITINS AND MATERIAL WEAKNESS Payrll Cnditin: Fur ut f sixty cancelled payrll checks tested had n supprting time sheet. Criteria: Internal cntrl shuld be in place that prvides assurance that all payrll checks written have supprting time sheets. Effect: Because f failure t have supprting dcumentatin checks culd be written fr services never perfrmed. Recmmendatins: Prcedures shuld be implemented required all checks written fr services have time sheets Cash Disbursements Cnditin: Seven ut f sixty cancelled cash disbursement checks tested had n supprting vendr's invices r receiving reprts. Criteria: Internal cntrls shuld be in place that prvides assurance that all cash disbursements checks written have supprting dcumentatin. Effect: Because f the failure t have supprting dcumentatin checks culd be written fr gds and services that was never received. Recmmendatins: Prcedures shuld be implemented requiring all checks written fr gds and services have vendr's invice, receiving reprt r in the absent f receiving reprts have department supervisr sign vendr's invices. 18

21 FINDINGS-FINANCIAL STATEMENT AUDIT REPRTABLE NDITINS AND MATERIAL WEAKNESS Prperty, Plant and Equipment Cnditin: ne ut f seven cancelled checks tested did nt have supprting vendr's invice and receiving reprt. Criteria: Cntrls shuld be in place t prvide assurance that all checks written have supprting vendr's invices and receiving reprts. Effect: Because f the failure t have supprting dcumentatin checks culd be written fr gds and services never received. Recmmendatins: Prcedures shuld be implemented requiring all checks written fr gds and services have vendr's invices, receiving reprt r in the absent f receiving reprts have department supervisr sign vendr's invices. 19

22 FINDING AND QUESTINED STS -MAJR FEDERAL AWARD PRGRAM MANAGEMENT NTRACT-PASS THRUGH NUMBER REPRTABLE NDITINS AND MATERIAL WEAKESS Payrll Cnditin: Fur ut f sixty cancelled payrll checks tested had n supprting time sheet. Criteria: Internal cntrl shuld be in place that prvides assurance that all payrll checks written have supprting time sheets. Effect: Because f failure t have supprting dcumentatin checks culd be written fr services never perfrmed. Recmmendatins: Prcedures shuld be implemented required all checks written fr services have time sheets Cash Disbursements Cnditin: Seven ut f sixty cancelled cash disbursement checks tested had n supprting vendr's invices r receiving reprts. Criteria: Internal cntrls shuld be in place that prvides assurance that all cash disbursements checks written have supprting dcumentatin. Effect: Because f the failure t have supprting dcumentatin checks culd be written fr gds and services that was never received. Recmmendatins: Prcedures shuld be implemented requiring all checks written fr gds and services have vendr's invice, receiving reprt r in the absent f receiving reprts have department supervisr sign vendr's invices. 20

23 FINDING AND QUESTINED STS -MAJR FEDERAL AWARD PRGRAM MANAGEMENT NTRACT-PASS THRUGH NUMBER REPRTABLE NDITINS AND MATERIAL WEAKESS Prperty, Plant and Equipment Cnditin: ne ut f seven cancelled checks tested did nt have supprting vendr's invice and receiving reprt. Criteria: Cntrls shuld be in place t prvide assurance that all checks written have supprting vendr's invices and receiving reprts. Effect: Because f the failure t have supprting dcumentatin checks culd be written fr gds and services never received. Recmmendatins: Prcedures shuld be implemented requiring all checks written fr gds and services have vendr's invices, receiving reprt r in the absent f receiving reprts have department supervisr sign vendr's invices. 21

24 B. W. PER, RMC SCHEDULE F PRIR AUDIT FINDINGS FR THE YEAR ENDED SEPTEMBER 30, Management Cntract Partially Reslved Payrll Reslved Purchasing Prcedures Reslved Reimbursement Administering Prcedures Unreslved Segment peratin Reslved Securely f Results Reslved 22

25 "tt. W. Cper Resident Management Crpratin i 'ii"u.v l'the Bard f Directr >-HMI hurhaia BKd. New rleans, LA (504) 822-8K40 Fax (504) RRECTIVE ACTIN PLAN FR THE YEAR ENDED SEPTEMBER 30, 2004 B, W. PER, RMC respectfully submits the fllwing crrective actin plan fr the year ended September 30,2004. Firm Name: Bbbie L. Hward, CPA, 921 Church Street - Rear Entrance Huma, LA Audit Perid: Fr the Year Ended September 30,2004 The findings frm the September 30, 2004 Schedule f Findings and Questined Csts are discussed belw. The findings are numbered cnsistently with the numbers assigned in the schedule. FINDINGS FINANCIAL STATEMENT AUDIT REPRT ABLE NDITINS Payrll Recmmendatin: Prcedures shuld be implemented requiring the cmpletin f an emplyment applicatin and payrll tax frms prir t adding new emplyees t the payrll. Actin Taken: We cncur with the recmmendatin, and it was implemented effective immediately Cash Disbursements Recmmendatins: Prcedures shuld be implemented requiring all checks written fr gds and services have vendr's invice, receiving reprt r in the absent f receiving reprts have department supervisr sign vendr's invices. 23

26 Actin Taken: We cncur with the recmmendatin, and it was implemented effective immediately Prperty, Plant, and Equipment Recmmendatins: Prcedures shuld be implemented requiring all checks written fr gds and services have vendr's invices, receiving reprt r in the absent f receiving reprts have department supervisr sign vendr's invices. Actin Taken: We cncur with the recmmendatin, and it was implemented effective immediately. 24

27 FINDINGS - MAJR FEDERAL AWARD PRGRAM MANAGEMENT NTRACT- PASS THRUGH NUMBER REPRTABLE NDITINS Payrll Recmmendatin: Prcedures shuld be implemented requiring the cmpletin f an emplyment applicatin and payrll tax frms prir t adding new emplyees t the payrll. Actin Taken: We cncur with the recmmendatin, and it was implemented effective immediately Cash Disbursements Recmmendatins: Prcedures shuld be implemented requiring all checks written fr gds and services have vendr's invice, receiving reprt r in the absent f receiving reprts have department supervisr sign vendr's invices. Actin Taken: We cncur with the recmmendatin, and it was implemented effective immediately Prperty, Plant, and Equipment Recmmendatins: Prcedures shuld be implemented requiring all checks written fr gds and services have vendr's invices, receiving reprt r in the absent f receiving reprts have department supervisr sign vendr's invices. Actin Taken: We cncur with the recmmendatin, and it was implemented effective immediately. 25

28 If the versight agency has questins regarding this plan, please call Eric Lilly, B. W. Cper, RMC, Cmptrller, (504) Sincerely, Eric Lilly, Cmptrller 26

29 B.W. PER, RMC FR THE YEAR ENDED SEPTEMBER 30, 2004 MANAGEMENT LETTER A management letter was nt issued in cnnectin with the audit fr the year ended September 30,