EUNICE STUDENT HOUSING FOUNDATION, INC. Eunice, Louisiana. Financial Report. Years Ended August 31, 2005 and 2004

Transcription

1 2:H(: s :.;o.-33 EUNCE STUDENT HOUSNG FOUNDATON, NC. Eunce, Lousana Fnancal Report Years Ended August 3, 2005 and 2004 Underprovsons of state law, ths report s a publc document. Acopy of the report has been submtted to the entty and other approprate publc offcals. The report s avalable for publc nspecton at the Baton Rouge offce of the Legslatve Audtor and, where approprate, at the offce of the parsh clerk of court. Release Date JL2-

2 TABLE OF CONTENTS NDEPENDENT AUDTOR'S REPORT -2 BASC FNANCAL STATEMENTS Statements of Net Assets 4 Statements of Revenues, Expenses and Changes n Fund Net Assets 5 Statements of Cash Flows 6 Notes to Fnancal Statements 7- NTERNAL CONTROL AND COMPLANCE ndependent Audtor's Report on nternal Control Over Fnancal Reportng and on Complance and Other Matters Based on an Audt of Fnancal Statements Performed n Accordance wth Government Audtng Standards 3-4 Summary of Pror Year Fndngs 5 Schedule of Fndngs and Questoned Costs 6 SUPPLEMENTAL NFORMATON Schedules of Operatng, General and Admnstratve Expenses 8 Page No.

3 Our audts were performed for the purpose of formng an opnon on the basc fnancal statements of Eunce Student Housng Foundaton, nc. taken as a whole. The supplemental nformaton lsted n the table of contents s presented for purposes of addtonal analyss and s not a requred part of the basc fnancal statements. Such nformaton has been subjected to the audtng procedures appled n the audt of the basc fnancal statements and n our opnon s farly stated, n all materal respects, n relaton to the basc fnancal statements taken as a whole. Management's dscusson and analyss, supplementary nformaton requred by the Governmental Accountng Standards Board, s not a requred part of the basc fnancal statements. The Foundaton has not presented ths nformaton as part of the fnancal report for the fscal year ended August 3, dftfaa, l^adea S* A Corporaton of Certfed Publc Accountants Eunce, Lousana May 0, 2006

4 BASC FNANCAL STATEMENTS

5 EUNCE STUDENT HOUSNG FOUNDATON, NC. Statements of Net Assets August 3,2005 and 2004 ASSETS ASSETS Cash $ 33,948 $ 48,7 Rents and fees recevable 47,378 57,080 nterest recevable 7,838 6,964 Cash - restrcted 95,35 0,24 nvestments - restrcted for debt servce, at far market value 652, ,244 Prepad expenses ,8 4, PROPERTY AND EQUPMENT, at cost 5,294,666 5,294,666 Less: Accumulated deprecaton ( ) (359,06) 4.756, ,650 OTHER-ASSETS Loan costs, net of amortzaton TOTAL ASSETS $ 5.833,467 S 6.94,52 LABLTES AND NET ASSETS LABLTES Cash overdraft $ 4,292 $ 44,880 Accounts payable 82,002 4,943 Accrued nterest payable 258,25 258,25 Management fees payable 64,03 42,270 Deferred rent revenue 79,279 72,355 Current maturtes of revenue bonds 5,000 Securty deposts 28,529 27, ,48 Revenue bonds payable 6,985,000 7,000,000 Unamortzed dscount (30,606) ( ) 6.683, TOTAL LABLTES 7.24, ,873 NET ASSETS nvested n captal assets, net of debt (,942,252) (,960,075) Restrcted 706, ,245, Unrestrcted (45.575) Total net assets (defct) (.38.85) (95.36) TOTAL LABLTES AND NET ASSETS S S 6,94.52 See accompanyng notes and accountant's report. 4

6 EUNCE STUDENT HOUSNG FOUNDATON, NC. Statements of Revenue, Expenses and Changes n Fund Net Assets Years Ended August 3, 2005 and SUPPORT AND REVENUE Apartment rent $ 603,88 $ 496,503 Fee ncome 36,274 29,937 nterest ncome 6,342 32,802 Mscellaneous 3,53 4,60 Total support and revenue 659, ,852 OPERATNG, GENERAL, AND AND ADMNSTRATVE EXPENSES DEFCT N NET ASSETS (429,824) (448,660) NET ASSETS (DEFCT), begnnng of the year (95.36) (502 JO ) NET ASSETS (DEFCT), end of the year Sfl.38.85) $ (95.36) See accompanyng notes and accountant's report.

7 EUNCE STUDENT HOUSNG FOUNDATON, NC. Statements of Cash Flows Years Ended August 3, 2005 and 2004 CASH FLOWS FROM OPERATNG ACTVTES Decrease n net assets $ (429,824) $ (448,660) Adjustments to reconcle decrease n net assets to net cash used by operatng actvtes: Deprecaton and amortzaton ncrease (decrease) n: Rent and fees recevable nterest recevable Prepad expenses (ncrease) decrease n: Accounts payable Management fees payable Deferred rent revenue Securty deposts payable Net cash used by operatng actvtes CASH FLOWS FROM NVESTNG ACTVTES Sale of nterest bearng deposts Net cash provded by nvestng actvtes CASH FLOWS FROM FNANCNG ACTVTES Proceeds (repayment) from cash overdraft Net cash provded (used) by fnancng actvtes Net decrease n cash and cash equvalents CASH AND CASH EQUVALENTS, begnnng of year CASH AND CASH EQUVALENTS, end of year Reconclaton of cash and cash equvalents per statement of cash flows to the balance sheet: Cash and cash equvalents, end of year Cash - unrestrcted Cash - restrcted Total cash and cash equvalents SUPPLEMENTAL DATA nterest pad 90,962 9,702 (874),927 77,059 2,76 6, (2.409) ,245 (40.588) (40,588) (29,752) $ , S S ,770 89,705,632 (885) (7,69) 2,270 (58,4) (550) (22.00) ,227 42,227 (49,95) $ , $ $ See accompanyng notes and accountant's report. 6

8 EUNCE STUDENT HOUSNG FOUNDATON, NC. Notes to Fnancal Statements NOTE SUMMARY OF SGNFCANT ACCOUNTNG POLCES Organzaton and Nature of Operatons The Eunce Student Housng Foundaton, nc. (The Foundaton) s a not-for-proft organzaton as outlned n the nternal Revenue Code Secton 50(c)(3). The Foundaton provdes student housng on the campus of Lousana State Unversty at Eunce, Lousana known as Bengal Vllage. The Bengal Vllage apartment complex conssts of 58 unts and s managed by Century Development Housng Management, L.P. (Century). The management agreement commenced August,2002 for a term of 5 years through July 3,207. Thereafter, the agreement shall be automatcally renewed annually unless termnated. All personnel employed n the leasng, management, mantenance and operaton of Bengal Vllage are employees of Century. Reportng Entty GASB Statement No. 4, The Reportng Entty, establshed crtera for determnng the governmental reportng entty and component unts that should be ncluded wthn the reportng entty. Under provsons of ths statement, the Foundaton s consdered a component unt of the Lousana State Unversty System..As a component unt, the audted fnancal statements of the Eunce Student Housng Foundaton wll be ncluded n the basc fnancal statements of the Lousana State Unversty System, a component unt of the State of Lousana, and n the basc fnancal statements of the Lousana State Unversty at Eunce for the year ended June 30, The accompanyng fnancal statements present nformaton only on the funds mantaned by the Eunce Student Housng Foundaton. Bass of Accountng The Foundaton utlzes the propretary fund method of accountng whereby revenues and expenses are recognzed on the accrual bass of accountng n accordance wth generally accepted accountng prncples. Bass of Presentaton The accompanyng fnancal statements of the Foundaton have been prepared n conformty wth accountng prncples generally accepted n the Unted States of Amerca (GAAP) as appled to governmental unts. The Governmental Accountng Standards Boards (GASB) s the accepted standard settng body for establshng governmental accountng and fnancal reportng prncples. Reclassfcatons Certan amounts for the year ended August 3, 2004 have been reclassfed to conform wth current year presentaton and had no effect on changes n net assets.

9 EUNCE STUDENT HOUSNG FOUNDATON, NC. Notes to Fnancal Statements NOTE SUMMARY OF SGNFCANT ACCOUNTNG POLCES (CONTNUED) Deprecaton Deprecaton s calculated over the estmated useful lves of the respectve assets usng the straght-lne method. Mantenance, Captalzaton, and Dsposal Polces Repars and mantenance are expensed as ncurred. Expendtures ncurred n the constructon or that ncrease the value or productve capacty of assets are captalzed. When property and equpment are retred, sold, or otherwse dsposed of, the asset's carryng amount and related accumulated deprecaton are removed from the accounts and any gan or loss s ncluded n operatons. Statement of Cash Flows For the purpose of the statement of cash flows, cash equvalents nclude tme deposts, certfcates of depost, and all hghly lqud nterest-bearng deposts wth a maturty of three months or less when purchased. Use of Estmates Preparaton of The Foundaton's fnancal statements n conformty wth generally accepted accountng prncples requres management to make estmates and assumptons that affect the reported amounts of assets and labltes and dsclosure of contngent assets and labltes at the date of the fnancal statements and reported amounts of revenues and expenses durng the reportng perod. Actual results could dffer from those estmates. NOTE 2 TAX STATUS The Foundaton s accorded tax-exempt status under the nternal Revenue Code Secton 50(c)(3). t s also exempt from Lousana ncome tax. Accordngly, no provson s requred for ncome taxes. The Foundaton s not a prvate foundaton as determned under Secton 509(a) of the nternal Revenue Code.

10 EUNCE STUDENT HOUSNG FOUNDATON, NC. Notes to Fnancal Statements NOTE 3 CASH AND CASH EQUVALENTS Cash overdraft: J. P. Morgan Chase - operatng Unrestrcted: Petty cash St. Landry Bank - rental deposts Bank of New York Trust Co. of Florda: Operatng expense Securty deposts Total unrestrcted cash Restrcted: St. Landry Bank - securty deposts Bank of New York Trust Co. of Florda: Captal reserve Prncpal Account Total restrcted cash and cash equvalents Total cash and cash equvalents Unrestrcted: J. P. Morgan Chase - operatng St. Landry Bank - rental deposts Bank of New York Trust Co. of Florda: Operatng expense Securty deposts Total unrestrcted cash $ (4,292) $ , ,023 33,948 4,492 6, $ 29,083 Bank Balance 2005 $ 7,888 25, ,023 4,320 $ (44.870) $ 300 2,56 2,266 33,629 48,7 35,23 38,245 36, $ Bank Balance 2004 $ 2,298 2,56 2, ,709 Restrcted: St. Landry Bank - securty deposts RanV ofwftw YnrV Trust Pn nf Florda- 4,492 35,23

11 EUNCE STUDENT HOUSNG FOUNDATON, NC. Notes to Fnancal Statements NOTE 4 RESTRCTED NVESTMENTS nvestments: Bank of New York Trust Co. of Florda: Debt Servce Trust Fund-US Treasury Notes Debt Servce Trust Fund-Fdelty US Treasury nvestments: Bank of New York Trust Co. of Florda: Debt Servce Trust Fund-US Treasury Notes Debt Servce Trust Fund-Fdelty US Treasury $ 522,88 30,8 $ , S Bank Balance Bank Balance ,88 30,8 S , S NOTE 5 LOAN COSTS Loan costs are beng amortzed over 30 years. Amortzaton expense totaled $8,785 for August 3, 2005 and 2004, respectvely. NOTE 6 NET DEFCT The year endng August 3, 2003 was the frst full year of rental actvty for Bengal Vllage. Management s addressng the defct and has ncreased renal rates by 6% durng Although rent revenue has ncreased by 2% durng the current year, t has not yet acheved budgeted amounts. Management s contnung efforts to ncrease occupancy. NOTE 7 PROPERTY AND EQUPMENT Category Buldng Streets, sdewalks and pool Fences, gates & sgns nteror fxtures Furnture & lghtng Offce equpment Equpment Total deprecable assets Less: Accumulated deprecaton Net deprecable assets Cost $ 4,36, ,064 09,255 47,93 32,890 24, ,294,666 (538,524) $ 4.756,42 Estmated Useful Lves 40 years 40 years 5 years 5 years 0 years 5 years 0 years 0

12 NOTE 8 LONG TERM DEBT EUNCE STUDENT HOUSNG FOUNDATON, NC. Notes to Fnancal Statements Lousana Local Government Envronmental Facltes and Communty Development Authorty Revenue Bonds Servces 2002, ssued January, 2002, at a coupon rate of 7.375%, prncpal payments begnnng September, 2005 wth fnal payment due September, Proceeds of bond utlzed for constructon, mprovement and equppng student housng at LSUE. Less current maturtes The annual requrements to amortze debt outstandng at August payments are as follows: Fscal Year Endng August 3, Thereafter Total prncpal payments \ \ $7,000,000 $7,000,000 5,000 $ $ , 2005, ncludng nterest Prncpal nterest $ 5,000 $ 55,697 30,000 54,038 50,000 5,088 70, ,663 90, ,763 6,745, ,797 $ $0.38:046

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14 NTERNAL CONTROL AND COMPLANCE

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16 Eugene H. Darnall. CPA, Retred 990 Paula D. Bhm, CPA, Deceased 2002 Darnall, Skes, Gardes&Frederck, (A Corporaton of Certfed Publc Accountants) ndependent Audtor's Report on nternal Control Over Fnancal Reportng and on Complance and Other Matters Based on an Audt of Fnancal Statements Performed n Accordance wth Government Audtng Standards E. Larry Skes. CPA. CVA. CFP> Danny P. Frederck, CPA Clayton E. Darnall, CPA, CVA Eugene H. Darnall,. CPA Stephane M. Hggmbolham. CPA John P. Armato, CPA J. Stephen Gardes, CPA, CVA Jennfer S. Zegler, CPA, CFP' Chrs A. Mller, CPA, CVA Stephen R. DscMe, MBA. CPA Steven G. Moosa, CPA M. Rebecca Gardes. CPA Pamela Mayeux Bonn, CPA. CVA Joan B. Moody. CPA Kathleen T. Darnall, CPA Erch G. Loewer,, MTX, CPA Raegan D. Maggo, CPA Barbara A. Clark, CPA Lauren V, Hebert, CPA Mchelle M- Bellard, CPA Jeremy C. Meaux, CPA Kevn S. Young, CPA Barbara Ann Watts, CPA Adam J. Curry. CPA Chad M. Baley. CPA Carol C. Gullory, CPA Chrsty S. Dew, CPA Heather N. Clement. CPA Vctora M. LaPrare. CPA Emly J. LeBoeuf. CPA The Board of Drectors Eunce Student Housng Foundaton, nc. Eunce, Lousana We have audted the fnancal statements of Eunce Student Housng Foundaton, nc. (a nonproft organzaton), as of and for the year ended August 3,2005, and have ssued our report thereon dated May 0, We have conducted our audt n accordance wth audtng standards generally accepted n the Unted States of Amerca, the standards applcable to fnancal audts contaned n Government Audtng Standards, ssued by the Comptroller General of the Unted States. nternal Control Over Fnancal Reportng n plannng and performng our audt, we consdered Eunce Student Housng Foundaton, nc.'s nternal control over fnancal reportng n order to determne our audtng procedures for the purpose of expressng our opnon on the fnancal statements and not to provde assurance on the nternal control over fnancal reportng. Our consderaton of the nternal control over fnancal reportng would not necessarly dsclose all matters n the nternal control that mght be materal weaknesses. A materal weakness s a reportable condton n whch the desgn or operaton of one or more of the nternal control components does not reduce to a relatvely low level the rsk that msstatements caused by error or fraud n amounts that would be materal n relaton to the fnancal statements beng audted may occur and not be detected wthn a tmely perod by employees n the normal course of performng ther assgned functons. We noted no matters nvolvng the nternal control over fnancal reportng and ts operaton that we consder to be materal weaknesses.

17 Ths report s ntended solely for the nformaton and use of the Board of Drectors, management, others wthn the organzaton, and the Legslatve Audtor of the State of Lousana and s not ntended to be and should not be used by anyone other than those specfc partes. Ths restrcton s not ntended to lmt the dstrbuton of ths report, whch s a matter of publc record. & A Corporaton of Certfed Publc Accountants Eunce, Lousana May 0,2006 4

18 EUNCE STUDENT HOUSNG FOUNDATON, NC. Summary of Pror Year Fndngs Year Ended August 3, 2005 There are no pror year fndngs.

19 EUNCE STUDENT HOUSNG FOUNDATON, NC. Schedule of Fndngs and Questoned Costs Year Ended August 3, 2005 Part Summary of Audtor's Results FNANCAL STATEMENTS Audtor's Report - Fnancal Statements An unqualfed opnon has been ssued on Eunce Student Housng Foundaton, nc.'s fnancal statements as of and for the year ended August 3, Reportable Condtons - Fnancal Reportng There were no reportable condtons n nternal control over fnancal reportng dsclosed durng the audt of the fnancal statements. Materal Noncomplance or Other Matters-Fnancal Reportng There were no nstances of noncompance or other matters materal to the fnancal statements dsclosed durng the audt of the fnancal statements. FEDERAL AWARDS Ths secton s not applcable for the fscal year ended August 3, Part Fndngs Relatng to an Audt n Accordance wth Government Audtng Standards There were no reportable condtons or nstances of materal noncompance noted durng the audt. Part Fndngs and Questoned Costs Relatng to Federal Programs Ths secton s not applcable for the fscal year ended August 3,

20 SUPPLEMENTAL NFORMATON

21 EUNCE STUDENT HOUSNG FOUNDATON, NC. Schedules of Operatng, General and Admnstratve Expenses Years Ended August 3, 2005 and Advertsng $ 4,447 $ 0,972 Amortzaton expense 8,785 8,786 Bad debt expense 69,963 26,382 Contract servces 28,405 22,649 Deprecaton expense 79,508 79,508 Employee beneft nsurance 3,887 5,853 nterest expense 58,99 58,727 Management fee 47,49 42,270 Meals and entertanment Mscellaneous 7,92 8,28 Offce expense 4,66 3,932 Payroll taxes 5,677 4,93 Postage 4,370,762 Professonal fees 8,739 9,880 Repar and mantenance 5,709 9,38 Salares 80,465 73,25 Supples 2,882 2,486 Telephone,93 9,346 Tranng Travel 3,26 4,069 Trustee fee 6,62 5,47 Unforms Utltes 55, S S See ndependent audtor's report on addtonal nformaton. 8