B ayou Land Fam ilies Helping Fam ilies,inc. FinancialStatem ents and lndependentauditor's Repo~ June

Transcription

1 B ayou Land Fam ilies Helping Fam ilies,inc. FinancialStatem ents and lndependentauditor's Repo~ June

2 B ayou Land Fam ilies Helping Fam ilies,inc FinancialStatem ents and IndependentA uditor's R eport As ofand forthe YearEnded June 30,2003 Table of Contents Page ndependenta uditor's Report 1 FinancialStatem ents Statem entoffinancialposition Statem entofactivities Statem entoffunctionalexpenses Statem entofcash Flow s Notes to FinancialStatem ents SpecialReports of C ert ified Public Accountants ndependenta uditor's Report on C om pliance and on InternalControl O verfinancialreporting Based on an AuditofFinancialStatem ents Perform ed in Accordance w ith Governm enta uditing Standards 1112 Supplem entary Inform ation Schedule offindings and Q uestioned Costs Schedule ofpriorfindings and Resolution M atters M anagem ent's Corrective Action Plan forc urrent YearFindings II

3 M artin and Pellegrin 103 Ramey Road Houm a,louisiana 7036~ ('erdfied Publi, 4ct,umants APeo]es~ionalCorporalinn)i Fax.(985~) To the Board ofd irectors Bayou Land Fam ilies Helping Fam ilies,inc Houm a,louisiana N DEPEN D ENT A UD ITO R 'S R EPO RT W e have audited the accom panying statem ent of financial position of Bayou Land FamiliesHelping Families,Inc.(a nonprofitorganization)as ofjune 30,2003,and the related statem ents of activities,functionalexpenses,and cash flow s forthe yearthen ended. These financial statem ents are the responsibility of the O rganization's m anagem ent. O urresponsibility is to express an opinion on these financialstatem ents based on ouraudit. W e conducted ourauditin accordance w ith auditing standards genera ly accepted in the United States ofam erica and the standards applicable to financialaudits contained in G overnm ent A uditing Standards, issued by the Com ptro ler G eneral of the U nited States. Those standards require that w e plan and perform the audit to obtain reasonable assurance about w hether the financial statem ents are free of m aterial m isstatem ent. A n audit includes exam ining,on a test basis,evidence supporting the am ounts and disclosures in the financialstatem ents. A n auditalso includes assessing the accounting principles used and significantestim ates m ade by m anagem ent,as w ell as evaluating the overa lfinancialstatem ent presentation. W e believe that our audit provides a reasonable basis forouropinion. In ouropinion,the financialstatem ents referred to above presentfairly,in allm aterial respects,the financialposition ofbayou Land Fam ilies Helping Fam ilies,inc.as ofjune 30,2003,and the changes in its netassets and its cash flow s forthe yearthen ended in conform ity w ith accounting principles genera ly accepted in the United States of A m erica. In accordance w ith G overnm enta uditing Standards w e have also issued a reportdated Septem ber 2, 2003 on our consideration of Bayou Land Fam ilies Helping Fam ilies, Inc.'s internalcontroloverfinancialreporting and ourtests ofits com pliance w ith certain provisions oflaw s,regulations,contracts,and grants. Thatreport is an integralpartof an auditperform ed in accordance w ith G overn m enta uditing Standards and should be read in conjunction with thisreport in considering the results ofouraudit. Septem ber2,2003

4 FINANC IA L STATEM ENT SECTIO N

5 Bayou Land Fam ilies Helping Fam ilies,inc Statem entoffinancialposition June A SSETS C urrenta ssets: C ash and cash equivalents U nconditionalprom ises to give: G overnm entalgrants Other Prepaid insurance TO TA L CURR ENT A SSETS Furniture and equipm ent,less accum ulated depreciation of$23,240 O therasset: Deposit TO TA L A SSETS $ 47,065 22,448 1,450 3, $ 200,549 LIA B ILITIES A N D N ET A SSETS C urrentliabilities: Accounts payable Accrued expenses TO TA L C U R R ENT LIA B ILITIES $ 14, NetAssets Unrestricted TO TA L LIA B ILITIES A N D N ET A SSETS $ 200,549 See accom panying notes to financialstatem ents 2

6 Bayou Land Fam ilies Helping Fam ilies, Inc. Statem entofactivities Forthe YearEnded June Unrestricted R EVENUES A ND O THER SUPPO RT G overnm entgrants O thergrants Contributions Fundraising O therincom e TO TA L REV ENUES A ND O THER SUPPO RT $ 410,411 22,918 3,951 13, FUNCTIO NA L EX PENSES Program services Fundraising M anagem entand genera TO TA L FUNCTIO NA L EXPENSES 268,607 7, OTHER INCREASES (DECREASES)IN NET A SSETS Interestincom e Loss on disposaloffixed assets TO TA L O THER DEC REASE IN NET ASSETS NCREASE IN NET ASSETS NET ASSETS,BEG INN ING O F PERIO D NET ASSETS,EN D O F PERIO D 14 (35) (21) 92, $ 162,116 See accom panying notes to financialstatem ents 3

7 B ayou Land Fam ilies Helping Fam ilies, inc Statem entoffunctionalexpenses Forthe YearEnded June Program Services Fundraising M anagem ent and General Total Salaries $ Rent G rants to others Supplies Stipends Office supplies Payro ltaxes Telephone Travel Respite Conferences and conventions Fundraising Insurance Auditfees Postage Equipm entrental Depreciation Consulting services State summercam p Utilities Lending library Repairs and m aintenance Printing and publications Accounting fees Counseling Dues and subscriptions Staffdevelopm ent Advertising Adm inistrative costs M isce laneous Bank charges Interest Taxes and licenses ,755 14,869 16,188 11,250 10,533 8,045 9,572 8, ,409 3,756 3,523 2,575 2,500 1,943 2,419 1, ,130 1,010 1, ,108 23,865 2,813 2, ,532 5, , ,541 23,865 21,755 18,586 16,188 I4,063 13,166 10,056 9,572 8,783 7,942 7,625 5,941 5,209 4,695 4,404 2,968 2,575 2,500 2,428 2,419 2,215 2,124 1,987 1,130 1,010 1, Totals $ 268, See accom panying notes to financialstatem ents 4

8 Bayou Land Fam ilies Helping Fam ilies,inc Statem entofcash Flow s Forthe YearEnded June CASH FLO W S FRO M O PERA TING ACTIVITIES: Increase in netassets Adjustments to reconcile increase innetassets to netcash provided by operating activities: Depreciation Loss on disposaloffixed assets Increase in operating assets: U nconditionalprom ises to give Prepaid insurance Deposit Increase in operating liabilities: A ccounts payable A ccrued expenses $ 92,977 2, (104,502) (1,318) (t,6oo) 14, N ET CA S H PRO V ID ED BY O PERATING A CTIV ITIES CA SH FLO W S USED IN O PERATING A CTIVITIES Purchases offurniture and equipm ent NET DECREASE IN CASH AND CASH EQ UIVALENTS BEG INNING CASH AND CASH EQ UIVALENTS ENDING CASH AND CASH EQ UIVALENTS (3,247) SU PPLEM ENTA L IN FO R M ATIO N : C ash paid during the yearforinterest See accom panying notes to financialstatem ents 5

9 Bayou Land Fam ilies Helping Fam ilies,inc. Notes to FinancialStatem ents A s ofand forthe YearEnded June NO TE 1 SUM M A RY O F SIG NIFICA NT ACCO UNTING PO LIC IES A. N ature ofthe O rganization Bayou Land Fam ilies Helping Fam ilies, Inc.,a notforprofitvoluntary health and w elfare agency,is a resource centerfor individuals w ith disabilities and fam ilies who have children with specialneeds. Services include parenttoparent support,education,training, referral,and inform ation services for m em bers of the com m unity w ho could benefit from the O rganization's resources. The O rganization serves a seven parish area including Terrebonne, Lafourche, Assum ption,st.m ary,st.jam es,st.john,and St.Charles parishes. B. Basis ofaccounting The financialstatem ents are prepared on the accrualbasis in accordance w ith accounting principles genera ly accepted in the United States of A m erica. C. NetA ssets Netassets and revenues,expenses,gains,and losses are classified based on the existence orabsence ofdonor im posed restrictions.accordingly,net assets of Bayou Land Fam ilies H elping Fam ilies, ~nc. and changes therein are classified and reported as fo low s: Unrestricted netassets Netassets notsubjectto donorim posed stipulations Tem porarily restricted net assets Net assets subject to donorim posed stipulations thatm ay orw ilbe m et,eitherby actions ofthe O rganization and/or the passage oftim e. W hen a restriction expires,tem porarily restricted netassets are reclassified to unrestricted net assets and reported in the statem ent of activities as netassets released from restrictions, Permanently restricted net assets Net assets subject to donorim posed stipulations thatthey be m aintained perm anently by the O rganization. G enera ly, the donors of these assets perm it the O rganization to use a l or part of the incom e earned on any related investm ents forgeneralorspecific purposes. D. Bad Debts The financialstatem ents ofbayou Land Fam ilies Helping Fam ilies,inc. cor~tair~rto a lowance forunco lectible ~rom ises to give. Uncotlectible accounts are recognized as an expense atthe tim e inform ation becom es available thatindicates the am ounts are unco lectible. W hile accounting principles generally accepted in the United States ofa m erica require thatbad debts be recorded utilizing the a low ance m ethod,the difference betw een the tw o m ethods is im m aterialto the O rganization, as m anagem entconsiders allprom ises to give to be fully co lectible. 6

10 Bayou Land Fam ilies Helping Fam ilies,inc Notes to FinancialStatem ents As ofand forthe YearEnded June NO TE 1 SUM M ARY O F SIG NIFICANT ACCO UNTING PO LICIES (Cont E. Furniture and Equipm ent Furniture and equipm ent acquired by Bayou Land Fam ilies Helping Fam ilies,inc.are considered to be ow ned by Bayou Land Fam ilies Helping Fam ilies,inc.exceptforproperty acquired w ith System PointofEntry funds. Title for that property reverts to the State at the com pletion of the grant period. Furniture and equipm entare stated atcost. Depreciation is com puted utilizing the straightline m ethod overthe estim ated life ofthe asset. D epreciation expense for the yearended June 30,2003 was $2,968. Furniture and equipmentacquisitions are capitalized ifthe purchase price exceeds $250 and the assethas a usefullife of greaterthan one year. F. Functional A location of Expenses The cost of providing the O rganization's services has been sum m arized on a functionalbasis in the statem entof activities. Accordingly,certain costs have been a located am ong the program s and supporting serv ices benefited. G.C ash and C ash Equivalents Forthe purpose ofthe statem entofcash flow s,bayou Land Fam ilies Helping Fam ilies,inc.considers a lunrestricted cash and otherhighly liquid investm ents w ith initial m aturities of three m onths or less to be cash equivalents. H. Estim ates The preparation of financialstatem ents in conform ity w ith accounting principles genera ly accepted in the United States ofam erica requires m anagem ent to m ake estim ates and assum ptions that afect certain reported am ounts and disclosures. A ccordingly,actualresults could differfrom those estim ates. Incom e Taxes Bayou Land Fam ilies Helping Fam ilies, Inc. is a notforprofit, voluntary health and w elfare agency exem pt from federal incom e taxes under Section 501(c)(3)ofthe InternalRevenue Code. It has been classified as an organization thatis nota private foundation undersection 509(a)(1)ofthe Internal R evenue Code and qualifies for the 50% charitable contributions deduction for individualdonors. The O rganization is not involved in any trade or businesses unrelated to the purpose forw hich itreceived its exem ption from incom e taxes. NO TE 2 FUN DING PO LICIE Bayou Land Fam ilies Helping Fam ilies, Inc. receives federaland state funding on a reim bursem ent for actual expense and a fee for serv ice basis passed through the Louisiana State Departm entof Health and Hospitals,State of Louisiana Departm entof Education,and State oflouisiana Departm entofsocialservices. 7

11 Bayou Land Fam ilies Helping Fam ilies,inc Notes to FinancialStatem ents As ofand forthe YearEnded June N O TE 3 U NC O N D ITIO NA L PRO M ISES TO G IV E As ofjune 30,2003,unconditionalprom ises to give consists ofthe follow ing: State oflouisiana/departm entofhealth and Hospitals/O fice of Public Health/System PointofEntry G rants $ 50,513 State oflouisiana/departm entofhealth and Hospitals/O fice of M entalhealth/early C hildhood Supports and Services Program 16,335 State oflouisiana/departm entofsocialservices/o fice of Com m unity Services State oflouisiana/departm entofhealth and Hospitals/C hildren's SpecialH ealth Services G rant State oflouisiana/d epartm entofeducation/lasig G rant State oflouisiana/d epartm entofhealth and Hospitals/ Developm entald isabilities Council , State oflouisiana/departm entofhealth and Hospitals/O fice for C itizens w ith Developm entaldisabilities 5,417 State oflouisiana/d epartm entofeducation/o fice ofspecial Education Serv ices State oflouisiana/departm entofhealth and Hospitals/Bureau ofc om m unity Supports and Services State oflouisiana/departm entofhealth and Hospitals/O fice of M entalh ealth TotalG overnm ental Fam ilies Helping Fam ilies ofg reaterbaton Rouge Northshore Fam ilies H elping Fam ilies TotalO ther $ 123,898 A llunconditionalpro m ises to give are due w ithin one yearand are considered to be fu ly co lectible by m anagem ent. These unconditionalprom ises to give are unrestricted. 8

12 Bayou Land Fam ilies H elping Fam ilies, Inc. NO TE 4 FURNITURE A ND EQ UIPM ENT Notes to FinancialStatem ents As ofand forthe YearEnded June 30, 2003 A sum m ary ofchanges in furniture and equipm entfo low s Balance July 1, 2002 Additions Furniture and equipment $ 30,655 $ 23,441 Accumulateddepreciation (26,326) (2,968) $ 4,329 $ 20,473 Deletions $ (6,089) 6,054 S (35) Balance June 30, 2003 $ 48,OO7 (23,240/ $ 24,767 NO TE 5 C O NC ENTRATIO N O F C R ED IT R IS K Financialinstruments thatpotentialy subjectthe Organization to concentrations ofcredit risk consistprincipa ly ofprom ises to give due from the State oflouisiana. Because these receivables are passed through supportfrom the Federaland State oflouisiana governm ents,the O rganization requires no co lateralforthese am ounts. N O TE 6 FA IR VA LU ES O F FINA N C IA L IN STR U M ENTS The O rganization's financialinstrum ents,none ofw hich are held fortrading purposes, include cash and cash equivalents and unconditionalprom ises to give. M anagem ent estim ates thatthe fairvalue of a lfinancialinstrum ents as of June 30,2003 does not diferm ateria ly from the aggregate carrying values ofits financialinstrum ents recorded in the accom panying statem entoffinancialposition. NO TE 7 O PERATIN G LEA SE D uring the yearended June 30,2003,the O rganization relocated to Heum a,louisiana. Beginning on A ugust 1,2002,the O rganization leased space from a nonrelated third party. The agreem entincluded monthly rentalpaym ents of$1,600. In M ay 2003,the O rganization leased additionalspace atthis location,and the m onthly rentalpaym ents increased to $2,600. The totalexpense underthis agreementforthe yearended June 30,2003 was $21,200. The totalexpense under the p~ vious lease ~ r the year ended June 30, 2003 w as $600. 9

13 NO TE 7 O PERA TING LEA SE tcon Bayou Land Fam ilies Helping Fam ilies, Inc. Notes to FinancialStatem ents As ofand forthe YearEnded June 30, 2003 The lease is for a term of 36 m onths. The m inim um annualcom m itm ents under this lease are as follow s: FiscalYearEnded June ,200 31, During the year ended June 30, 2003, the O rganization received unrestricted unconditionalprom ises to give in the form ofgrants from the fo low ing grantors: G overnm entg rants State oflouisiana: Departm entofhealth and Hospitals Departm entofsocialservices Departm entofeducation Totalgovernm entgrants $ 272, ,921 30,598 $ 410,411 OtherG rants St.C harles Inclusion U nited W ay STAR and PROMPT Projects Totalothergrants $ 22, $ 22,918 N O TE 9 PA Y M ENTS TO A FFILIA TES U nder a Departm ent of H ealth and Hospitals grant, Bayou Land Fam ilies Helping Fam ilies w as designated to adm inister five other Fam ilies Helping Fam ilies organizations theirportion ofthe funds from this grant. The totalam ountadm inistered to these organizations was $21,

14 SPEC IA L REPO RTS O F CERTIFIED PUBLIC ACCO UNTA NTS

15 M artin and I Peilegrin! 103 RarneyRoad Houm a,louisiana 7036( CertifiedPublic"Accountants1 A Profeysi~nalCorporation) Fax(985) To the Board ofd irectors Bayou Land Fam ilies Helping Fam ilies,inc Houm a.louisiana W e have audited the financialstatem ents ofbayou Land Fam ilies Helping Fam ilies,inc. (the Organization),as ofand forthe yearended June 30,2003,and have issued our reportthereon dated Septem ber2,2003. W e conducted ourauditin accordance w ith auditing standards genera ly accepted in the United States of Am erica and the standards applicable to financialaudits contained in G overn m enta uditing Standards, issued by the Com ptrollerg eneralofthe U nited States. As partof obtaining reasonable assurance aboutw hetherthe O rganization's financial statem ents are free ofm aterialm isstatem ent,w e perform ed tests ofits com pliance w ith certain provisions oflaw s,regulations,contracts and grants,noncom pliance w ith w hich could have a direct and m aterial e fect on the determ ination of financialstatem ent am ounts. How ever,providing an opinion on com pliance w ith those provisions w as not an objective ofourauditand,accordingly,we do notexpress such an opinion. The results of our tests disclosed no instances of noncom pliance that are required to be reported underg overn m enta uditing Standards. nternalc ontrolo verfinancialredortina In planning and perform ing ouraudit,w e considered the O rganization's internalcontrol overfinancialreporting in orderto determ ine ourauditing procedures forthe purpose of expressing ouropinion on the financialstatem ents and notto provide assurance on the internalcontroloverfinancialreporting. However,w e noted a certain m atterinvolving the internalcontroloverfinancialreporting and its operation thatw e considerto be a reportable condition. Reportable conditions involve m atters com ing to our attention relating to significantdeficiencies in the design oroperation ofthe internalcontrolover financialreporting that,in ourjudgment,could adversely afectthe Organization's ability 11

16 Board ofd irectors Bayou Land Fam ilies Helping Fam ilies,inc Houm a.louisiana to record,process,sum m arize and reportfinancialdata consistentw ith the assertions of m anagem ent in the financialstatem ents. A reportable condition is described in the accom panying schedule offindings and questioned costs as item A m aterialw eakness is a condition in w hich the design oroperation ofone orm ore of the internalcontrolcom ponents does not reduce to a relatively low levelthe risk that m isstatem ents in am ounts thatw ould be m aterialin relation to the financialstatem ents being auditing m ay occurand not be detected w ithin a tim ely period by em ployees in the norm alcourse of perform ing their assigned functions. O ur consideration of the internalcontroloverfinancialreporting w ould notnecessarily disclose a lm atters in the internal control that m ight be reportable conditions and, accordingly, w ould not necessarily disclose a lreportable conditions that are aiso considered to be m aterial w eaknesses. How ever,w e believe thatthe reportable condition described above is not a m aterialw eakness. The report is intended solely forthe inform ation ofthe Board ofd irectors,m anagem ent, others w ithin the O rganization,the Louisiana Legislative Auditorand federaland state aw arding agencies and passthrough entities and is notintended to be and should not be used by anyone otherthan these specified parties. Septem ber2,200 12

17 SUPPLEM ENTA RY INFO RM ATIO N

18 Bayou Land Fam ilies Helping Fam ilies,inc Schedule offindings and Q uestioned C osts Forthe YearEnded June Section ISum m ary of A uditor's Results The auditor's report expresses an unqualified opinion on the financia statem ents ofbayou Land Fam ilies Helping Fam ilies,inc. 2 3 One reportable condition (see finding 0301)was noted during the auditof the financialstatem ents. This reportable condition w as notconsidered a m aterialw eakness. No instances of noncom pliance m aterialto the financial statem ents of Bayou Land Fam ilies Helping Fam ilies,inc.,w hich w ould be required to be reported in accordance w ith G overnm ent A uditing Standards, w ere disclosed during the audit. 4. A m anagem entletterw as notissued Section IIFindings FinancialStatem enta udit No findings m aterialto the financialstatem ents of Bayou Land Fam ilies Helping Fam ilies,inc.w ere noted during the audit. Section IIIInternalControlFindings 0301 Statem ent of Condition: internalcontrol. A reportable condition in the O rganization's C riteria: In ourconsideration ofinternalcontrol,w e noted thatthe size of the O rganization's operations and its lim ited accounting staf preclude an adequate segregation ofduties and otherfeatures ofan adequate system ofinternalcontrol. Efects of Condition: The internal control, in our judgment, could adversely afect the entity's ability to record, process, sum m arize, and report financialdata consistentw ith the assertions of m anagem ent in the financialstatem ents. 13

19 Bayou Land Fam ilies Helping Fam ilies,inc. Schedule offindings and Q uestioned Costs Forthe YearEnded June 30,2003 Section IIInternalControlFindings (Cont.) C ause of C ondition: The size of the O rganization and its lim ited accounting staf preclude an adequate segregation of duties and other features ofan adequate system ofinternalcontrol. Recom m endation: The Board of D irectors of the O rganization should closely m onitor the daytoday activities of the O rganization and im plem ent other control procedures untilthe agency has grow n to the pointw here itis costbeneficialto em ploy an adequate system ofinternal controls. Response: The m anagem entofthe O rganization agrees w ith this finding Q uestioned Costs Section IV Findings and Questioned Costs MajorFederalAward Program Audit This section is notapplicable 14

20 Bayou Land Fam ilies Helping Fam ilies,inc Schedule ofpriorfindings and Resolution M atters A s ofand forthe YearEnded June 30,2003 Note: Allpriorfindings relate to the June 30,2002 auditengagem ent Section I InternalControland Com pliance M aterialto the FinancialStatem ents C ondition: A reportable condition in the O rganization's internalcontroḷ In our consideration of internal control, w e noted that the size of the O rganization's operations and its lim ited accounting staf preclude an adequate segregation ofduties and otherfeatures ofan adequate system ofinternalcontrol. R ecom m endation: The Board of D irectors of the O rganization should closely m onitor the daytoday activities of the O rganization and im plem ent other control procedures untilthe agency has grow n to the pointw here itis costbeneficialto em ploy an adequate system ofinternal controls. Status: The O rganization has im plem ented the recom m endation, butthe lack of segregation ofduties continues to exist. As such, the Board w ill continue to perform the recom m endation. Section II InternalControland Com pliance M aterialto FederalAw ards This section is notapplicable Section III M anagem entletter This section is notapplicable 15

21 B ayou Land Fam ilies Helping Fam ilies, Inc M anagem ent's Corrective A ction Plan forcurrentyearfindings A s ofand forthe YearEnded June The contactperson fora lcorrective actions noted below is Sharon Dousay, Executive D irector. SECTIO N I INTER NA L C O NTRO L A N D C O M PLIA N C E M A TER IA L TO TH E FINA NC IA L STATEM ENTS nadeauate InternalC ontrol Condition: A reportable condition in the internal control related to a lack of segregation ofduties. Recom m endation: The Board of Directors of the O rganization should closely m onitorthe daytoday activities ofthe O rganization and im plem entothercontrol procedures untilthe agency has grow n to the pointw here itis cost beneficialto em ploy an adequate system ofinternalcontrols. Planned A ction: The Board of D irectors w il closely m onitor the daytoday activities of the O rganization untilit is financia ly feasible to em ploy additional staf. SECTIO N II INTERNA L CO NTRO L A ND CO M PLIA NC E M ATERIA L TO FEDERA L AW A R DS This section is notapplicable SECTIO N III M A NA G EM ENT LETTER This section is notapplicable 16