BOBBIE L. HOWARD, CPA B. W. COOPER, RMC 3400 EARHART BLVD.

Transcription

1 BOBBIE L. HOWARD, CPA A PROFESSIONAL ACCOUNTING CORPORATION 921 Church St-Rear Entrance Phne: (985) Huma, IA Fax i (985) B. W. COOPER, RMC 3400 EARHART BLVD. NEW ORLEANS, LA " r- --r\ en vd TO THE BOARD OF DIRECTORS INDEPENDENT AUDIT REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2006 Under prvisins f state law, this reprt is a public dcument. A cpy 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. COOPER RMC 3400 EARHART BLVD. NEW ORLEANS, LA TABLE OF CONTENTS Page Independent Auditr's Reprt 1 FINANCIAL STATEMENTS Statement f Financial Psitin 3 Statement f Activities 4 Statement f Functinal Expenses 5 Statement f Cash Flw 6 Ntes t Financial Statements 7 COMPLIANCE AND INTERNAL CONTROL REPORTS Independent Auditr's Reprt f Cmpliance and n Internal Cntrl Over 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 Over Cmpliance in Accrdance with OMB Circulatin A SUPPLEMENTARY INFORMATION Schedule f Federal Financial Assistance 17 Schedule f Findings and Questin Cst 18 Summary f Schedule f Prir Audit Findings 23 Crrective Actin Plan 24 Management Letter 27

3 BOBBIE L. HOWARD, CPA A PROFESSIONAL ACCOUNTING CORPORATION 921 Church St.-Rear Entrance Huma, LA Phne:(985) Fax: (985) INDEPENDENT AUDITOR'S REPORT T the Bard f Directrs B. W. COOPER, RMC 3400 EARHART BLVD. NEW ORLEANS, LA We have audited the accmpanying statement f financial psitin f the B. W. COOPER, RMC "a nnprfit rganizatin" as f SEPTEMBER 30, 2006 and the related statements f activities, functinal expenses and cash flws fr the year then ended. These financial statements are the respnsibility f B. W. COOPER, RMC's management. Our 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. COOPER, RMC as f SEPTEMBER 30, 2006, 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 March 28, 2007 n the cnsideratin f B. W. COOPER, 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 Our audit was perfrmed fr the purpse f frming an pinin n the basic financial statements f B. W. COOPER, 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. Office f Management and Budget Circular A-133, Audits f States, Lcal Gvernments and A/n Prfit Organizatins, 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. Bbbie L Hward Certified Public Accunt March 28, 2007

5 B. W. COOPER, RMC STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 2006 ASSETS Current Assets Cash ( Nte A & E) Grant Receivable (Nte A & B) Other Receivable Other Current Assets $ 2,224,713 6,000 9,314 $ 2,980 Ttal Current Assets Prperty, Plant and Equipment Net f Accumulated Depreciatin f $25,079 ( Nte A & C) Ttal Assets $ 2,243,007 92,299 $ 2,335,306 LIABILITIES AND NET ASSETS Current Liabilities Due t Emplyee Payrll Taxes Payable Accunts Payable Other Current Liabilities ,335 11,437 Ttal Current Liabilities 90,772 Net Assets Unrestricted 2,244,534 Ttal Net Assets Ttal Liabilities and Net Assets $ 2,244,534 $ 2,335,306 See auditr's reprt and ntes t the financial statements.

6 B. W. COOPER, RMC STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2006 REVENUES Revenues, Gains, and Other Supprt Management Cntract Interest Incme Miscellaneus Ttal Revenues, Gains and Other Supprt Unrestricted $ 3,776,281 20,352 10,674 $ 3,807,307 EXPENSES Management Cntract HUD Cmprehensive Ttal Expenses $ 2,587,379 $ $ 2,795,503 Change in Net Assets Adjustments t Net Assets Net Assets, Beginning f year Net Assets, End f year $ 1,011,804 $ 1,232,730 $ 2,244,534 See auditr's reprt and ntes t the financial statements.

7 CO + 1- (0 V) c 0) a X UJ O CD in m T- in " f c <«-" CD O h- f CO «-" OT-in-^cinincOTi-cNi jcjjinct-trccc^r cdi^-t-h-intrt-t-ci^^rcnccdr^cn mtj-r^cct-cncnin^ r~-vr^t-ccota-hs. OJCNCO T-mcN-^- CN T- T- CN «- O) CO CN f <d- T rt ^c" CN CO IO u> CD N f 0) (0 tt +" c 5 c E.2 c 2 i_ 'C D + > O h* z a. >. c Q c 1U O 0 0 O 1 CD ^rf (0 *J (A is ' ccoc i^ 0) J= 4rf +» CO UJ CO z UJ Q. X Ul 0 _J s < a: z r* 02 P IH a. ^ 0? 0 M LL > 3 H rri m Z uj g UJ H CO 2 CO O CM - - " c a! u» UJ OQ S UJ a. UJ CO a UJ a UJ a: < UJ >- UJ X 1- tt II- 15 i_ 0) c a D X Q> O) (0 C (0 E < 1 5 CO *J O 0 0 O CD in in T- in " CN O CO ^ ^ a> (/> cu X as c H c 0 TO ^, CO CO CO CL < K f 00 V *rf (0 Ttal Emplyee C r-mx-cdinmc^-cncno CNOccNccNcm ^-ccc^r CDS-T-h^iq^TT-T-CDh- CNCOCDN-OI m" " ^r" I s -" c" c" T-" CM" c\f in " " h-" T-" h-t-coco^t^- CNCN T-inCN^T CN T- Ol T- t-&- *rr w c 0) '^= W,A O W c Sg ^ 0 CD CD 0) 8 "0 0 = S.WQ-.g 0)0_ C Q.C, n x mr!co CO Q-CO Sfl 1^<S? fill 1 *l ill glillsl J $- =.Ow=^, r a3cn5(d OT a5a5sg c -l8. 5!5g>E^5-ElSS^ l 1 «l&5 f c c & E c O ^^ - m c -^ C^-*O Q. = = *J» rr -DyDCDE'CO-CD^a)^ ^^" LU<O.O)I- -Q.LUH<I-C02S>^Q. 3T > CO CN f *r sr ther Expenses epreciatin Ttal Operating E: -* r^ c" CN Q ^> 01 c" Ol CO r*. (D <* IO &> d. w ^Ol T" c" 01 > K CO h." 00 U) f <A Ttal Expenses (0 0) *J c D c(0 r & 0) (A! auditr' w 0) CO

8 B. W. COOPER, RMC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2006 Cash Flws frm Operating Activities: NetAssets $ 1,010,985 Adjustments t recncile net incme t net cash prvided by perating activities: Depreciatin Expense 25,079 Change in Receivables 230,587 Change in Other Current Assets 113,470 Change in Payable 89,335 Change in Other Current Liabilities (37,166) Ttal Adjustments $ 420,759 Net Cash Prvided by Operating Activities: 1,431,744 Cash Flws frm Investment Activities Purchase f Fixed Assets (111,755) Net Cash Prvided by Investing Activities (111,755) Cash Flws frm Financing Activities: Net Cash Prvided by Financing Activities: Net Increase (Decrease) in Cash 1,319,989 Cash at Beginning f Perid 904,724 Cash at End f Perid $ 2,224,713 See auditr's reprt and ntes t financial statements.

9 B. W. COOPER, RMC NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2006 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. Organizatin B. W. COOPER, RMC is a nn-prfit rganizatin established primarily t prvide service in the frm f prperty management fr the B. W. Cper Apartments. Other 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 Of 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 Presentatin Financial Statement presentatin fllws the recmmendatins f the Financial Accunting Standards Bard (SFAS) N. 117 Financial Statements f Nt-fr-Prfit Organizatins. Under SFAS N 117, the Organizatin is required t reprt infrmatin regarding it's financial psitin and activities accrding t three classes f net assets: unrestricted net assets, temprarily restricted net assets and permanently restricted net assets. 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. Cncentratin f Grants Apprximately 99% f the Organizatins funding is frm a grant frm the Husing Authrity f New Orleans.

10 6 Estimates Management uses estimates and assumptins in preparing financial statements. Thse estimates and assumptins affect the reprted amunts f assets and liabilities, the disclsure f cntingent assets and liabilities and the reprted amunts f revenue and expenses. Actual results culd differ frm the estimates. 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 and the Statement f Functinal Expenses. Accrdingly, certain cst have been allcated amng the prgrams and supprting services benefited. 8. Incme Tax Status The rganizatin is exempt frm tax under sectin 501(c)(3) f the Internal Revenue Cde. Hwever, incme frm certain activities nt directly related t the Organizatin's tax exempt purpse is subject t taxatin as unrelated business incme. In additin, the Organizatin qualifies fr a charitable cntributin deductin under Sectin 170(b)(1)(A) and has been classified as an rganizatin ther than a private fundatin under Sectin 509(a)(2). 9. Prperty, Plant and Equipment All acquisitins f prperty and equipment in excess f $50 and all expenditures fr repair and maintenance, renewals, and betterments that materially prlng the useful lives f assets are capitalized. Prperty and equipment are carried at cst r, if dnated, at the apprximate fair value at the date f dnatin. Depreciatin is cmputed using the straight-line methd.

11 NOTE B - GRANT RECEIVABLE Grant receivable fr B. W. COOPER, RMC cnsists f the fllwing: Drug Eliminatin $6,000 Ttal Grant Receivables $6,000 NOTE C - PROPERTY AND EQUIPMENT Prperty and Equipment cnsisted f the fllwing at September 30, 2006 Furniture & Equipment $ 24,166 Cmputer Equipment 17,978 Other Equipment 48,862 Aut 26,369 $117,375 Accumulated Depreciatin $ 25,079 Ttal Prperty and Equipment $ 92,296 NOTE D - REVENUES, GAINS, AND OTHER SUPPORT Management Cntract $ 3,776,281 HUD Cmprehensive Grant 0 Day Care 0 Pregnancy Preventin 0 Residential Services 0 Rss Grant 0 Management Imprvement Fund 0 Interest and ther Incme 31,025 Ttal Revenues, Gains and Other Supprt $ 3,807,307 Includes Funding Frm The State Of Luisiana:

12 NOTE E - CASH IN BANK The Organizatin maintains its cash balances in ne financial institutin lcated in New Orleans, La. The balances are insured by the FDIC up t $100,000. Cash at this institutin exceeded Federal insured limits. The excess amunt is $2,124,712. NOTE F - ECONOMIC DEPENDENCY The agency received the majrity f its revenue frm cntracts with the Husing Authrity f New Orleans, 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 peratin. 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. NOTE G - RETIREMENT PLANS Substantially all f the Agencies emplyees are eligible fr a 401 K plan. During the current year the Agency matched $34,418-OO.The agency did nt have a material amunt f vacatin fr cmpensated absences. NOTE H - OPERATING LEASES The Organizatin had several nn cancelable perating leases fr vehicles that expire at varius dates. YEAR TOTAL PAYMENTS , ,162 Rental expense under perating leases was $8,217 fr the year ended September 30,

13 NOTE I - REVENUES The revenues were reduced due t the effects f the hurricane and the aftermath f the rebuilding effrt. This in additin t the slwly develping reppulatin did nt facilitate the funding f several prgrams. n

14 BOBBIE L. HOWARD, CPA A PROFESSIONAL ACCOUNTING CORPORATION 921 Church St'Rear Entrance Huma, LA Phne: (985) Fax: (985) REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS. T The Bard f Directrs B. W. COOPER, RMC 3400 EARHARTBVLD. New Orleans, LA We have audited the cmpliance f B. W. COOPER, RMC as f and fr the year ended September 30, 2006, and have issued ur reprt theren dated March 28, We cnducted ur audit in accrdance with auditing standards generally accepted in the United States f American and the standards applicable t financial audits cntained in Gvernment Auditing Standards, by the Cmptrller f the United States. Internal Cntrl Over Financial Reprting In planning and perfrming ur audit, we cnsidered B. W. COOPER, 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 a matter 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. COOPER, RMC ability t initiate, recrd, prcess, and reprt financial data cnsistent with the assertins f management in the financial statements. Reprtable cnditins are described in the accmpanying Schedule f Findings and Questined Csts as item # 06-01, 06-02, 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. Our cnsideratin f the internal cntrl ver financial reprting wuld nt necessarily disclse all matters in the internal cntrl ver financial rg rtinatha^^ cgdiigd^jdd.--agggrdinalv. wuld nt 12

15 necessarily disclsed all reprtable cnditins that are als cnsidered t be material weaknesses. Hwever, f the reprtable cnditins described abve we cnsider as Item # 06-01, 06-02, and is cnsidered t be a material weaknesses. Cntrl Over Cmpliance As part f btaining reasnable assurance abut weather the f B. W. COOPER, 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 instances f nncmpliance r ther matters that are required t be reprted under Gvernment Auditing Standards and which are disclsed in the accmpanying schedule f finding and questined cst as item # We als nted certain additinal matters that we reprted t management f B.W. COOPER, RMC in a separate letter dated march 28, 2007 This reprt is intended fr the infrmatin f the Bard and management B. W. COOPER, RMC, the Husing Authrity f New Orleans, 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 Auditr as a public dcument. Bbbie L. Hward Certified Public Accuntant March 28,

16 BOBBIE L. HOWARD, CPA A PROFESSIONAL ACCOUNTING CORPORATION 921 Church St-Rear Entrance Phne: (985) Huma, LA Fax: (985) INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 T The Bard f Directrs B. W. COOPER, RMC 3400 EARHARTBVLD. New Orleans, LA Cmpliance We have audited the cmpliance f B. W. COOPER, RMC with the types f cmpliance requirements described in the U.S. Office f Management and Budget (OMB) Circular A-133 Cmpliance Supplement that are applicable t each f its majr prgrams fr the year ended September 30, B. W. COOPER, 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 each its majr federal prgram, is the respnsibility f B. W. COOPER, RMC management. Our respnsibility is t express an pinin n B. W. COOPER, RMC cmpliance based n ur audit. We cnducted ur audit f cmpliance in accrdance with auditing Standards generally accepted in the United States f America; the standards applicable t financial audits cntained in Gvernment Auditing Standards, issued by the Cmptrller General f the United States, OMB Circular A-133, "Audits f States, Lcal Gvernments and Nn Prfit Organizatins". Thse standards and OMB 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. COOPER, 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. Our audit des nt prvide a legal determinatin n B. W. COOPER, RMC cmpliance with thse requirements. Cmpliance with such prvisins is necessary, in ur pinin, fr B. W. COOPER, RMC t cmply with the requirements. 14

17 As described in items in accmpanying schedule f finding and questined csts. B.W. COOPER, RMC did nt cmply with requirements regarding c-mingling f funds. Cmpliance with such requirements is necessary, in ur pinin, fr B.W. COOPER, RMC t cmply with requirement applicable t that prgram. In ur pinin, except fr the nncmpliance described in the preceding paragraph, B.W COOPER, 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 Over Cmpliance The management f B. W. COOPER, 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. COOPER, 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 OMB 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 cmpliance that, in ur judgment, culd adversely affect B.W. COOPER, RMC ability t administer a majr 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 # 06-01, 06-02, 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 caused by errr r fraud 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. Our cnsideratin f the internal cntrl ver cmpliance wuld nt necessarily disclse all matters in the internal cntrl that might be reprtable cnditins and, accrdingly, wuld nt necessarily disclse all reprtable cnditins that are als cnsidered t 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 # 06-01, 06-02, and This reprt is intended fr the infrmatin f the Bard and management B. W. COOPER, RMC, the Husing Authrity f New Orleans, 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. 15

18 Hwever, under Luisiana Revised Statue 24:513, this reprt is distributed by the Legislative Auditr as a public dcument. L. Hward Certified Public Accuntant March 28,

19 B.W. COOPER, RMC SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE FOR THE YEAR ENDED SEPTEMBER 30, 2006 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 Orleans $ 3,776,282 U.S. Department f Agriculture (USDA)-Fd & Nutritin Pass-thrugh frm State f LA U.S. Department f Health And Human Services Pass-thrugh frm State f La. Department f Scial Services TOTAL $ 3,776,282 17

20 B. W. COOPER, RMC SCHEDULE OF FINDINGS AND QUESTIONED COST SUMMARY OF THE INDEPENDENT AUDITOR'S RESULTS FOR THE YEAR ENDED SEPTEMBER 30, The auditr's reprt expresses an unqualified pinin n the financial statements f B. W. COOPER, RMC. 2. Three reprtable cnditins disclsed during the audit f the financial statements are reprted in the Schedule f Finding and Questined Cst. The cnditins is reprted as a material weakness. 3. One instances f nncmpliance nt material t the financial statements f B. W. COOPER, RMC which wuld be required t be reprted in accrdance with Gvernment Auditing Standards, were disclsed during the audit. 4. Three reprtable cnditin in internal cntrl ver majr federal award prgram disclsed during the audit is reprted in the Schedule f Findings and Questined Cst. The cnditins is reprted as a material weakness. 5. The auditr's reprt n cmpliance fr the majr federal award prgrams fr B. W. COOPER, RMC expresses an qualified pinin. 6. Audit findings that are required t be reprted in accrdance with Sectin 510 (a) f OMB Circular A-133 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 OMB Circular A-133, Sectin 520(b) are as fllws: Prgram Amunt Type A $ 300, B. W. COOPER, RMC des nt qualify as a lw risk auditee, under OMB Circular A-133, Sectin

21 B.W. COOPER RMC SEHEDULE OF FINDING AND QUESTIONED COST YEAR ENDED SEPTEMBER 30, 2006 FINDINGS-FINANCIAL STATEMENT AUDIT REPORTABLE CONDITIONS AND MATERIAL WEAKNESS Payrll Cnditin: Tw ut f twenty five cancelled payrll checks tested did nt have persnnel files. Criteria: Internal cntrl shuld be in place that prvides assurance that all emplyees are added t payrll and all dcumentatin has been verified and prcessed. Effect: Because f failure t have a persnal file with the prper dcumentatin emplyees may be added t payrll withut apprval f management. Recmmendatins: Prcedures shuld be implemented requiring all emplyees have a persnnel file Cash Disbursements Cnditin: Three ut f twenty-five cancelled cash disbursement checks tested did nt have 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 ail 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. 19

22 B.W. COOPER RMC SEHEDULE OF FINDING AND QUESTIONED COST YEAR ENDED SEPTEMBER 30, 2006 FINDINGS-FINANCIAL STATEMENT AUDIT REPORTABLE CONDITIONS AND MATERIAL WEAKNESS Prperty, Plant and Equipment Cnditin: One ut f eight 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. FOOD AND NUTRITION CONTRACT: CAFD# REPORTABLE CONDITION Child and Nutritin Prgram Cnditin: The Organizatin remved funds frm a dedicated bank accunt. Criteria: The Luisiana Department f Educatin requires all funds and expenditures fr the Fd and Nutritin Prgram be received and disbursed frm this dedicated accunt. Effect: Because f the failure in adherence t the plicy a cmpliance requirement is breached. Recmmendatins: The rganizatin shuld replace the funds in the dedicated accunt. 20

23 B.W. COOPER RMC SEHEDULE OF FINDING AND QUESTIONED COST YEAR ENDED SEPTEMBER 30, 2006 FINDING AND QUESTIONED COSTS -MAJOR FEDERAL AWARD PROGRAM MANAGEMENT CONTRACT-PASS THROUGH NUMBER REPORTABLE CONDITIONS AND MATERIAL WEAKESS Payrll Cnditin: Tw ut f twenty five cancelled payrll checks tested did nt have persnnel files. Criteria: Internal cntrl shuld be in place that prvides assurance that all emplyees are added t payrll and all dcumentatin has been verified and prcessed. Effect: Because f failure t have a persnal file with the prper dcumentatin emplyees may be added t payrll withut apprval f management. Recmmendatins: Prcedures shuld be implemented requiring all emplyees t have a persnnel file Cash Disbursements Cnditin: Three ut f twenty-five cancelled cash disbursement checks tested did nt have 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. 21

24 B.W. COOPER RMC SEHEDULE OF FINDING AND QUESTIONED COST YEAR ENDED SEPTEMBER 30, 2006 FINDING AND QUESTIONED COSTS -MAJOR FEDERAL AWARD PROGRAM MANAGEMENT CONTRACT-PASS THROUGH NUMBER REPORTABLE CONDITIONS AND MATERIAL WEAKESS Prperty, Plant and Equipment Cnditin: One ut f eight 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 FOOD AND NUTRITION CONTRACT: CAFD# REPORTABLE CONDITION Child and Nutritin Prgram Cnditin: The Organizatin remved funds frm a dedicated bank accunt. Criteria: The Luisiana Department f Educatin requires ail funds and expenditures fr the Fd and Nutritin Prgram be received and disbursed frm this dedicated accunt. Effect: Because f the failure in adherence t the plicy a cmpliance requirement is breached. Recmmendatins: The rganizatin shuld replace the funds in the dedicated accunt. 22

25 B. W. COOPER, RMC SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED SEPTEMBER 30, Untimely audit reprt Prperty, Plant and equipment Cash Disbursement Payrll Prperty, Plant and Equipment Cash Disbursements Payrll Management Cntract Payrll Purchasing Prcedures Reimbursement Administering Prcedures Segment Operatin Securely f Results Reslved Unreslved Unreslved Reslved Unreslved Unreslved Unreslved Reslved Reslved Reslved Reslved Reslved Reslved 23

26 B. W. Cper Resident Management Crpratin 3400 Earhart Blvd. New Orleans, LA (504) Fax: (504) CORRECTIVE ACTION PLAN FOR THE YEAR ENDED SEPTEMBER 30,2006 B. W. COOPER, RMC respectfully submits the fllwing crrective actin plan fr the year ended September 30,2006. Firm Name: Bbbie L. Hward, CPA, 921 Church Street - Rear Entrance Huma, LA Audit Perid: Fr the Year Ended September 30,2006 The findings frm the September 30, 2006 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 REPORTABLE CONDITIONS Payrll Recmmendatin: file. Prcedures shuld be implemented all emplyees have a persnnel 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. 24

27 06-03 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 Child and Nutritin Prgram CAFD# Recmmendatins: Replace funds in dedicated accunt. Actin Taken: We cncur with the recmmendatin, and it was implemented effective immediately. FINDINGS - MAJOR FEDERAL AWARD PROGRAM MANAGEMENT CONTRACT- PASS THROUGH NUMBER REPORTABLE CONDITIONS Payrll Recmmendatin: file. Prcedures shuld be implemented all emplyees have a persnnel 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. 25

28 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 Child and Nutritin Prgram CAFD# Recmmendatins: Replace funds in dedicated accunt. Actin Taken: We cncur with the recmmendatin, and it was implemented effective immediately. 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 BOBBIE L. HOWARD, CPA A PROFESSIONAL ACCOUNTING CORPORATION 921 Church SRear Entrance Phne: (985) Huma,IA Fax: (985) March 28, 2007 T the Bard f Directr B.W. COOPER, RMC In planning and perfrming ur audit f the financial statement f B.W. COOPER, RMC fr the year ended September 30, 2006, we cnsidered internal cntrl in rder t determine ur auditing prcedures fr the purpse f expressing an pinin n the financial statement and nt t prvide assurance n internal cntrl. Hwever, during ur audit, we became aware f matter that are pprtunities fr strengthening internal cntrls and perating efficiency, (we previusly reprted n internal cntrl in ur reprted dated March 28, 2007.) This letter des nt affect ur reprt dated March 28, 2007, n the financial statements f B.W. COOPER, RMC. We will review the status f these cmments during ur next audit engagement. We have already discussed these cmments and suggestins with B.W COOPER, RMC persnnel, and we will be pleased t discuss these cmments in further detail at yur cnvenience, t perfrm any additinal study f this matters, r assist yu in implementing the recmmendatins. Our cmments are summarized as fllws. Capitalizatin f fixed assets While testing fixed assets, we nted that items less than $50.00 are being capitalize. This capitalizatin plicy results in having t keep track f and cmpute deprecatin n small amunts fr several years. T reduce unnecessary bkkeeping resulting frm having t cmpute depreciatin n numerus very small items. D nt capitalize any items under $1,

30 We wish t thank the Cntrller and his department fr their supprt and assistance during ur audit. This reprt is intended slely fr the infrmatin and use f the Bard f Directrs, management, and thers within the rganizatin and is nt intended t be and shuld nt be used by anyne ther than these specified parties. BOBBIE L. HOWARD,CPA 28