ASSUMPTION ASSOCIATION FOR RETARDED CITIZENS. INC. (A NOT FOR PROFIT ORGANIZATION) FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2004 AND 2003

Transcription

1 ASSUMPTIN ASSCIATIN FR RETARDED CITIZENS. INC. (A NT FR PRFIT RGANIZATIN) FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2004 AND 2003 Undei prvisins dcument A cpy f the fftpnf! hfls b&gf submitted t tl"p cr.tty and ther sypfpiate public fficials, The ^prt is available far public inspectin at th Batn Ruge ff'ce f the Lepislativu Auditr ana, where apprpriate, at [iia ffice f *,he pansh clerk f curt.

2 ASSUMPTIN ASSCIATIN FR RETARDED CITIZENS. INC. (A NT FR PRFIT RGANIZATIN) FINANCIAL STATEMENTS YEARS ENDED JUNE AND 2003

3 CNTENTS Independent Auditrs' Reprt Financial Statements Statements f Financial Psitin 2 Statements f Activities 3 Statements f Cash Flws 4 Ntes t Financial Statements 5-8 Supplementary Infrmatin Schedules f Supprt and Revenue 9-10 Schedules f Functinal Expenses Independent Auditrs' Reprt n Cmpliance and n Internal Cntrl ver Financial Reprting Based n an Audit f Financial Statements Perfrmed in Accrdance with Gvernment Auditing Standards Schedule f Findings and Questined csts 15 Schedule f Prir Findings and Questined Csts 16

4 P&N Pstlethwalte & Netterville A Prfessinal Accunting Crpratin Assciated ffices in Principal Cities f the United States INDEPENDENT AUDITRS' REPRT Bard f Directrs Assumptin Assciatin fr Retarded Citizens, Inc. Naplenville, Luisiana We have audited the accmpanying statements f financial psitin f Assumptin Assciatin fr Retarded Citizens, Inc. (a nt fr prfit rganizatin) as f June 30, 2004 and 2003 and the related statements f activities and cash flws fr the years then ended. These financial statements are the respnsibility f the Assciatin's management. ur respnsibility is t express an pinin n these financial statements based n ur audits. We cnducted ur audits 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 tiie United States. Thse standards require that we plan and perfrm the audits 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 audits prvide 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 Assumptin Assciatin fr Retarded Citizens, Inc. as f June 30,2004 and 2003, and the changes in its net assets and its cash flws fr the years then ended in cnfrmity with accunting principles generally accepted in the United States f America. In accrdance with Gvernment Auditing Standards, we have als issued ur reprt dated September 14, 2004 n ur cnsideratin f Assumptin Assciatin fr Retarded Citizens, Inc.'s internal cntrl ver financial reprting and ur tests f its cmpliance with certain prvisins f laws, regulatins, cntracts, and grants. That reprt is an integral 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 audits. ur audits were perfrmed fr the purpse f frming an pinin n the basic financial statements f Assumptin Assciatin fr Retarded Citizens, Inc. taken as a whle. The accmpanying schedules f public supprt and revenue and functinal expenses are presented fr purpses f additinal analysis and are 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. Dnaldsnville, Luisiana September 14, St. Patrick St. P.. Bx 1190 Dnaldsnville, LA Tel: Fax:

5 ASSUMPTIN ASSCIATIN FR RETARDED CITIZENS. INC. (A NT FR PRFIT RGANIZATIN) STATEMENTS F FINANCIAL PSITIN JUNE 30,2004 AND 2003 ASSETS: Cash and cash equivalents Certificates f depsit Accunts receivable, net f the allwance fr uncllectible accunts f $12,415 and $42,566, respectively Interest receivable Investments Land, buildings, and equipment TTAL ASSETS LIABILITIES AND NET ASSETS: Accunts payable Salaries and payrll taxes payable NET ASSETS: Unrestricted TTAL LIABILITIES TTAL LIABILITIES AND NET ASSETS , , ,317 2, , ,605 12,191 65,316 77,507 2,345, , , ,130 2, , ,175 19,259 49,373 68,632 2,060,371 The accmpanying ntes are an integral part f these statements. -2-

6 ASSUMPTIN ASSCIATIN FR RETARDED CITIZENS. INC. TA NT FR PRFIT RGANIZATIN* STATEMENTS F ACTIVITIES YEARS ENDED JUNE AND REVENUES AND TER SUPPRT: Public Supprt: Public cntributins $ 4,296 $ 2,811 Allcated by Capital Area United Way 14,492 12,692 Cntributins frm gvernment agencies 2,001,376 1,768,861 ther Revenue: Net unrealized gains n investments 40,422 6,585 Membership dues - individual Sales t public (net f expenses f $58,018 and $54,193, respectively 131, ,701 Activity center services 333, ,322 Interest and dividend incme 13,122 10,604 Gain n sale f investments - (16,117) Gain n sale f assets 11,036 Recvery f bad debts 5,341 18,620 Miscellaneus revenue 470 3,675 Ttal revenues and ther supprt 2,556,427 2,194,174 EXPENSES: Residential Services Naplenville Manr 315, ,487 Thibaut Manr 337, ,139 Day-Prgram Services Activity Center 556, ,713 Prject Fund 151, ,282 Assciatin Fund 6,144 4,338 Waiver Services 650, ,161 Fee fr Service 2, General and Administrative Central ffice 251, ,113 Ttal expenses 2,271,532 2,118,245 Change in net assets 284,895 75,929 Net assets at beginning f year 2,060,371 1,984,442 Net assets at end f year S S The accmpanying ntes are an integral part f these statements. -3-

7 ASSUMPTIN ASSCIATIN FR RETARDED CITIZENS. INC. (A NT FR PRFIT RGANIZATINS STATEMENTS F CAS FLWS YEARS ENDED JUNE AND 2003 CAS FLWS FRM PERATING ACTIVITIES: Change in net assets Adjustments t recncile change in net cash used by perating activities: Depreciatin Prvisin fr bad debts Gain n sale f assets Unrealized gain n investments Lss n sale f investments (Increase) decrease in accunts receivable Increase in interest receivable Decrease in accunts payable Increase (decrease) in salaries and payrll taxes payable Net cash prvided by perating activities ,895 76,842 12,789 (11,036) (40,422) (127,976) 457 (7,068) 15, ,424 75,929 65,299 8,120 (6,585) 16,117 23,583 (1,751) (8,236) (4,228) 168,248 CAS FLWS FRM INVESTING ACTIVITIES: Net (increase) decrease in certificates f depsit Purchases f investments Sales f investments Purchases f prperty and equipment Cash received frm sales f prperty and equipment Net cash used in investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning f year Cash and cash equivalents at end f year (257,827) (911) 100,080 (117,636) 41,400 (234,894) (30,470) 236,613 (253,340) (12,713) 159,976 (55,872) 879 (161,070) 7, ,435 The accmpanying ntes are an integral part f these statements. -4-

8 ASSUMPTIN ASSCIATIN FR RETARDED CITIZENS, INC. (A NT FR PRFIT RGANIZATIN) NTES T FINANCIAL STATEMENTS 1. Summary f Significant Accunting Plicies A. The Assciatin is a nn-prfit rganizatin frmed t furnish educatin and recreatin t the mentally retarded and handicapped persns f Assumptin Parish. The Assciatin is slely dependent upn apprpriatin frm State agencies and ther cntributins. B. T ensure prper usage f restricted and unrestricted assets, the Assciatin maintains its accunts accrding t generally accepted accunting principles, whereby funds are classified in accrdance with specified restrictins r bjectives. C. Buildings and equipment are recrded at cst and are being depreciated using accelerated and the straight-line methds ver their estimated useful lives as fllws: Buildings Transprtatin equipment ther equipment years 5 years 5-10 years D. Management cnsiders accunts receivable that are mre than 30 days ld t be past due. Additinally, management has determined that accunts receivable that are mre than ne year ld may nt be cllectible. Therefre, the reserve fr uncllectible accunts is based upn the balance f receivables that are mre than ne year ld. E. The majrity f the Assciatin's revenue is derived frm third-party reimbursement arrangements. These revenues and the allwability f the related expenditures are subject t audits by the granting agencies. F. The Assciatin reprts gifts f cash and ther assets as restricted supprt if they are received with dnr stipulatins that limit the use f the dnated assets. When a dnr restrictin expires, that is, when a stipulated time restrictin ends r purpse f restrictin is accmplished, temprarily restricted net assets are reclassified t unrestricted net assets and reprted in the statement f activities as net assets released frm restrictins. The Assciatin reprts gifts f land, buildings, and equipment as unrestricted supprt unless explicit dnr stipulatins specify hw the dnated assets must be used. Gifts f lng-lived assets with explicit restrictins that specify hw the assets are t be used and gifts f cash r ther assets that must be used t acquire lng-lived assets are reprted as restricted supprt. Absent explicit dnr stipulatins abut hw lng thse lng-lived assets must be maintained, the Assciatin reprts expiratins f dnr restrictins when the dnated r acquired lng-lived assets are placed in service. Cntributins f dnated nncash assets are recrded at their fair values in the perid received. Cntributins f dnated services that create r enhance nnfinancial assets r that require specialized skills, are prvided by individuals pssessing thse skills, and wuld typically need t be purchased if nt prvided by dnatin, are recrded at their fair values in the perid received. -5-

9 ASSUMPTIN ASSCIATIN FR RETARDED CITIZENS. INC. (A NT FR PRFIT RGANIZATIN) NTES T FINANCIAL STATEMENTS 1. Summary f Significant Accunting Plicies (cntinued) G. The preparatin f financial statements in cnfrmity with accunting principles generally accepted in the United States f America requires management t make estimates and assumptins that affect certain reprted amunts and disclsures. Accrdingly, actual results culd differ frm thse estimates.. The Assciatin cnsiders all cash accunts and certificates f depsit with a maturity f three mnths r less when purchased t be cash and cash equivalents. I. The Assciatin is exempt frm the incme taxes under sectin 501 (c) (3) f the Internal Revenue Cde and is nt cnsidered a private fundatin. 2. Cash The Assciatin maintains cash pls that are available fr use by the individual prgrams. The individual prgram cash balances at June 30, carried at cst, which apprximates market value, were as fllws: Cash Balances Fund Naplenville Manr $ 118,818 $ 61,067 Thibaut Manr 155,982 85,001 Activity Center 17,814 14,133 Prject Fund (93,174) (39,938) Assciatin Fund (85,528) (85,535) Waiver Services 44, ,741 Fee Fr Service 48,372 26,333 Central ffice (998) 1,811 $ 206,143 $ 236,613 At June 30,2004, the carrying amunt f the Assciatin's depsits were $ 875,310 and the bank balance was $ 921,230. f this bank balance, $761,007 was cvered by federal depsitry insurance, and $160,223 was uninsured. -6-

10 3. Investment Securities ASSUMPTIN ASSCIATIN FR RETARDED CITIZENS. INC. ( A NT FR PRFIT RGANIZATIN) NTES T FINANCIAL STATEMENTS Investments are stated at fair value and cnsist f the fllwing at June 30, 2004 and Mney market funds Merrill Lynch Mitts Mutual funds $ 153,650 $ 252,867 87,435 84, , ,983 $ 526,015 $ 584, Cntributins frm Gvernment Agencies Cntributins frm gvernment agencies at June 30, 2004 cnsist f the fllwing: Naplenville Manr Thibaut Manr Activity Waiver Fee fr Center Services Service Ttal Title XIX $ 349,817 Patient Liability 43,382 MR Waiver Cntract Fee fr Service Department f Transprtatin Grant $331,488 54,677 26,881 $ - $ - $ - 274,902 2, ,430 5,215 $ 681,305 98, , ,430 5,215 26,881 Ttal $ 393,199 $413,046 $274,902 $915,014 $ 5,215 $2,001,376 Cntributins frm gvernment agencies at June 30, 2003 cnsist f the fllwing: Naplenville Manr Thibaut Manr Activity Waiver Fee fr Center Services Service Ttal Title XIX $ 354,512 Patient Liability 33,148 MR Waiver Cntract Fee fr Service Department f Transprtatin Grant $324,284 46,238 $ - $ - $ - 274,900 18, ,755 $ 678,796 79, , ,755 18,024 Ttal $ 387,660 $370,522 $292,924 $717,755 $ - $1,768,861-7-

11 ASSUMPTIN ASSCIATIN FR RETARDED CITIZENS, INC. fa NT FR PRFIT RGANIZATIN) NTES T FINANCIAL STATEMENTS 5. Buildings and Equipment Buildings and equipment at June 30,2004 and 2003 cnsist f the fllwing: Building $ 956,694 $ 953,830 Land 7,300 7,300 Transprtatin equipment 297, ,135 Furniture and equipment 251, ,515 1,512,778 1,464,780 Less: Accumulated depreciatin (814,173) (776,605) $ $ 688, Retirement Plan The Assciatin adpted a Simple IRA retirement plan effective July 1, The plan cvers all full time emplyees. The Assciatin matches the emplyees' cntributins up t 3% f their cmpensatin. The Assciatin's cntributins fr the year ended June 30,2004 and 2003 were $10,738 and $8,995, respectively. -8-

12 SUPPLEMENTARY INFRMATIN

13 a is * c4 Wl ~ rm r- z; 3 r- (S (S ' r- N r- \ as N fel U G 1/1 < X M C ta C J D Q M U G s r- 0- S D t/> V3 iblic Supprt: Pablic cntributins United Way ental agencies S Allcated by Capital Ar antributins frm gvern ther Revenue: U in> Investments Membership dues Sales t public (net f e: Residential services Interest and dividend int Gain (lss) n sale f Gain (lss) n sale f as in w "5 0.a s ^V«Sp. R a 4> tn Recvery f bad debts Miscellaneus KT Revenue S >tal Public Supprt and C

14 <s 8 ' r*i r-. r- r* rj N M fl r- t-? i < (-^ r» ^ " ^rf * r~ I " (S r4 * 3 \ tf CS s s M «ser Revenue s Iu J= R

15 T3 t "S <u ' 1 k t*% scn Tj- \ v> ' ' * «n ' v s ^- s c * i r^" t" r V) ' ' t"* r 1 * ' ' > ^ ^ tr^ "& in \ s C <* U w «} 2: 6w S - 1 Q Ed Q 1 < RRET 1 4 S U t/3 ^3 j^ t^ fe imllv a 5^* $ S E 3P fa Z ^ P i PENSES g TVMII U fc u- C Ei N- 9! U C e a ^** n 1* a Ed 85 I1 w >1 1 u U 1 IN 1 S in^ is =3 *3 a m M S Cl s Ji s Z r* t- ' ' «n ' cs ft b- m S t~- S \ r r4 ^ C4 trt <S ' ' ' t- ' Q\ l fl f\ 00 r4 * r**' ^* ^- r-l 3m i^ S ^t ' ' s c~j c-i r~- " > g < (S \ ' s m 'en ' S r- *» v ) in tn \ " ^r" " vi (S in v ** ' *<r ' fi ^ v^ t^ ^ \D s I/T" fi f 2 ^ V) ' ' 00 ' f- ' c \ fi r**» r*- s ^ rf\ 01 t- *^ i " " M ^» V 5 s t- 0) S C " SC ' S f S 1 1 N r- r- - r- «r-^ t ff> en V. S 1 5 in <t Vi «a S fe JSi ^ s «w fit d> -* S 8 ail I > D. a» S 0- I 1 I I V U

16 fcrretaaassciatin s a -a pu u m (S ^f t^ * l rr ^- ' fft 00 Vi " " rf r-" vt ci ^-" U t/: ^K p 5r 1 I 1 5 M Eb A NT FR PR CEDULES F Fl YEARS ENDED Jl >» V3 t» E» 2Ui ^1 X CTINAL 1 S en 2 p ^3 C5 m bu k-^ S 0 1 u C (S u JT Services M a '3 1 Q d S.s u S a (S 1 «1 1 1 cs ' ' r- (S rt w T t- M v» " * T 1 1 ^ t ^- t/i

17 P&N Pstlethwalte & Netterville A Prfessinal Accunting Crpratin Assciated ffices in Principal Cities f th United States INDEPENDENT AUDITRS' REPRT N CMPLIANCE AND N INTERNAL CNTRL VER FINANCIAL REPRTING BASED N AN AUDIT F FINANCIAL STATEMENTS PERFRMED IN ACCRDANCE WIT GVERNMENT AUDITING STANDARDS Bard f Directrs Assumptin Assciatin fr Retarded Citizens, Inc. Naplenville, Luisiana We have audited the financial statements f Assumptin Assciatin fr Retarded Citizens, Inc. (a nnprfit rganizatin) as f and fr the years ended June 30, 2004 and 2003, and have issued ur reprt theren dated September 14, We cnducted ur audits 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. Cmpliance As part f btaining reasnable assurance abut whether Assumptin Assciatin fr Retarded Citizens, Inc.'s 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. wever, prviding an pinin n cmpliance with thse prvisins was nt an bjective f ur audits 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 audits, we cnsidered Assumptin Assciatin fr Retarded Citizens, Inc.'s 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. wever, we nted a certain matter- invlving the internal cntrl ver financial reprting and its peratin that we cnsider t be a reprtable cnditin. 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 Assumptin Assciatin fr Retarded Citizens, Inc.' s ability t recrd, prcess, summarize and reprt financial data cnsistent with the assertins f management in the financial statements. The reprtable cnditin is described in the accmpanying schedule f findings and questined csts as item St. Patrick St. P.. Bx 1190 Dnaldsnville, LA Tel: Fax:

18 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 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 that might be reprtable cnditins and, accrdingly, wuld nt necessarily disclse all reprtable cnditins that are als cnsidered t be material weaknesses. wever, we believe that the reprtable cnditin described abve is nt a material weakness. This reprt is intended fr the infrmatin f the bard f directrs, management, and the Legislative Auditr. wever, this reprt is a matter f public recrd and its distributin is nt limited. Under Luisiana Revised Statue 24:513, this reprt is distributed by the Legislative Auditr as a public dcument. Dnaldsnville, Luisiana September 14, P&N

19 ASSUMPTIN ASSCIATIN FR RETARDED CITIZENS. INC. SCEDULE F FINDINGS AND QUESTINED CSTS YEAR ENDED JUNE SUMMARY F AUDIT RESULTS 1. The auditrs* reprt expressed an unqualified pinin n the financial statements f Assumptin Assciatin fr Retarded Citizens, Inc. 2. ne reprtable cnditin relating t the audit f the financial statements is reprted as 04-1 in this schedule. Cnditin 04-1 is nt a material weakness. 3. N instances f nncmpliance material t the financial statements f Assumptin Assciatin fr Retarded Citizens, Inc. were disclsed during the audit. FINDINGS - FINANCIAL STATEMENT AUDIT, REPRTABLE CNDITINS 04-1 Segregatin f Duties. Finding: The perfrmance f accunting prcedures is limited t ne persn. Therefre, there is insufficient segregatin f duties. Recmmendatin: N actin is recmmended. It wuld nt be cst effective t increase the size f the staff tp achieve effective segregatin f duties Payrll Finding: During the year an emplyee charged mre hurs that she actually wrked. The additinal time charged was apprximately $1,900. Cause: This ccurred because the supervisrs wh were apprving payrll did nt adequately perfrm their jbs. " Recmmendatin: the supervisrs must perfrm their jbs. Management's Respnse: We have garnished wages f the emplyee and have instructed the supervisrs t adequately review payrll. -15-

20 ASSUMPTIN ASSCIATIN FR RETARDED CITIZENS. INC. SCEDULE F PRIR FINDINGS AND QUESTINED CSTS YEAR ENDED JUNE Financial Statement Audit Reprtable Cnditins 03-1 Cnditin: The perfrmance f accunting prcedures is limited t ne persn. Therefre, there is insufficient segregatin f duties. Current Status: A similar finding was nted in the prir year Cnditin: Certain departments within the Assciatin are nt cnsistently preparing backup cpies f all IT data files, prgrams and perating systems. Additinally, the backups fr these departments are nt being stred in a fireprf place n a regular basis. Current Status: The assciatin has begun t prepare regular backups and is string them in a fireprf place n a regular basis. -16-