WASHINGTON STREET HOPE CENTER, INC.

Transcription

1 WASHINGTON STREET HOPE CENTER, INC. Financial Report Years Ended June 30, 2005 and 2004 Under provisions of state law, this report is a public document. Acopy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court. Release Date IT* l^cag

2 TABLE OF CONTENTS INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS Comparative statement of financial position 3 Statement of activities Year ended June 30, Year ended June 30, Statement of functional expenses Year ended June 30, Year ended June 30, Comparative statement of cash flows 8 Notes to financial statements 914 COMPLIANCE AND INTERNAL CONTROL Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1617 Summary schedule of current and prior year audit findings and corrective action plan 18 Page

3 C. Burton Kolder, CPA* Russell F. Champagne, CPA* Victor R. Slavan. CPA" Conrad O. Chapman, CPA* P Troy CourvJIle, CPA" Gerald A Thibodaaux, Jr., CPA* Rotiert 5. Carter, CPA Allen J. LaBry, CPA Harry J. Clostio, CPA Penny Angalla Scruggins, CPA Christine L Cousin, CPA Mary T. Thibodeaux, CPA Kelly M. Doocat. CPA Kenneth J. Rachel, CPA Cheryl L. Bartley, CPA CVA KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 531 Marksville, LA Phone (318) Fax (318) INDEPENDENT AUDITORS' REPORT WEB SITE COM MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOCIETY OF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS A Professional Accounting Corporation To the Board of Directors Washington Street Hope Center, Inc. We have audited the accompanying statement of financial position of Washington Street Hope Center, Inc. (a nonprofit organization) as of June 30, 2005 and 2004 and the related statements of activities, functional expenses, and cash flows for the years then ended. These financial statements are the responsibility of the organization's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Washington Street Hope Center, Inc. as of June 30, 2005 and 2004 and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated October 24, 2005, on our consideration of Washington Street Hope Center, Inc.'s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Kolder, Champagne, Slaven & Company, LLC Certified Public Accountants Marksville. Louisiana October 24, 2005 I S3 South Beadle Road Lafayette, LA Phone (337) Fax (337) Ewt Bridge Street Breaux Bridge. LA Phone (337) 332J020 Fax (337) East Waddil MarksviHe, LA Phone(3 IB) Fax(318) ] 1234 David Drive, Suile 105 Morgan City, LA Phone(985) fax (985) 384J W Cotton Street Ville Plane. LA Phone (337) Fax (337) 3633M9 332 W Sixth Avenue Oberlin, LA Phone (337) 639"! 737 Fax (337) South Main Street Abbeville, LA Phone(337) Fax (337)

4 FINANCIAL STATEMENTS

5 Comparative Statement of Financial Position June 30,2005 and ASSETS Cash Receivables: State funds Federal funds Other Utility deposit Property and equipment, net of accumulated depreciation $ 75,058 33,653 1, , ,970 $ 31,302 16, , ,498 Total assets $236,395 $184,294 LIABILITIES Payroll taxes payable Accounts payable Total liabilities 2,757 2,757 $ 936 2,558 3,494 NET ASSETS Unrestricted net assets: Undesignated Fixed assets Total unrestricted net assets Temporily restricted net assets 45, , ,326 64,312 30, , ,605 16,195 Total net assets 233, ,800 Total liabilities and net assets $236,395 $184,294 The accompanying notes are an integral part of this statement.

6 Statement of Activities Year Ended June 30, 2005 Support: Contributions Permanently Unrestricted Restricted $ 9,020 $ 25,301 Totals (Memorandum Only) $ 34,321 $ 21,930 Revenues: Federal grants Program service fees Miscellaneous Total support and revenues 24,455 10,847 44, , , ,761 24,455 10, , ,580 24,966 10, ,843 Functional expenses: Program services Hope Center Management and general 9,939 21, , , ,873 21,013 17,204 Total functional expenses 30, , , ,077 Public support and other revenue over expenses 13,370 39,468 52,838 15,766 Other changes in net assets: Operating transfers (8,649) 8,649 Total increase in net assets 4,721 48,117 52,838 15,766 Net assets, beginning 164,605 16, , ,034 Net assets, ending $ 169,326 $ 64,312 $ 233,638 $180,800 The accompanying notes are an integral part of this statement.

7 Statement of Activities Year Ended June 30, 2004 Support: Contributions Totals Permanently (Memorandum Only) Unrestricted Restricted $ 4,294 $ 17,636 $ 21,930 $ 18,798 Revenues: Federal grants Program service fees Miscellaneous Total support and revenues 24,966 10,367 39, , , ,580 24,966 10, , ,610 10,700 5, ,105 Functional expenses: Program services Hope Center Management and general 10,183 17, , ,873 17, ,346 21,773 Total functional expenses 27, , , ,119 Public support and other revenue over (under) expenses 12,240 3,526 15,766 (25,014) Other changes in net assets: Operating transfers 2,481 (2,481) Total increase (decrease) in net assets 14,721 1,045 15,766 (25,014) Net assets, beginning 149,884 15, , ,048 Net assets, ending S 164,605 $ 16,195 S 180,800 $165,034 The accompanying notes are an integral part of this statement.

8 Statement of Functional Expenses Year Ended June 30, 2005 Payroll: Salaries Payroll taxes Total payroll Program Services Hope Center $150,544 11, ,155 Management and General Totals (Memorandum Only) $ $ 150, ,406 11,611 11, , ,090 Other: Contract labor Bonuses Dues and subscriptions Utilities Postage 1,352 18, , , , , , Insurance Telephone Maintenance Miscellaneous Rent 14,916 2,784 5,808 1,707 3, ,462 2,305 15,867 2,784 8,270 4,012 3,000 12,111 2,704 12,655 4,316 3,000 Supplies Food Household Office Medical Literature Other 26,500 1,661 1, _ 96 7,204 1,178 26,500 1,661 1, ,960 1,178 16,626 4,209 1,961 1,531 5,933 Professional Accounting & auditing Medical Other Travel Total other 6,150 7,187 92,439 _ ,307 6,150 7, ,746 6,550 6,050 1, ,804 Allocation of Depreciation 9,939 1,706 11,645 10,183 Total functional expenses $ 264,533 $21,013 $ 285, ,077 The accompanying notes are an integral part of this statement. 6

9 7 Statement of Functional Expenses Year Ended June 30, 2004 Payroll: Salaries Payroll taxes Total payroll Program Services Hope Center $ 151,406 11, ,090 Management and General Totals (Memorandum Only) $ $151,406 $131,641 11,684 10, , ,771 Other: Contract labor Bonuses Dues and subscriptions Utilities Postage Insurance Telephone Maintenance Miscellaneous Rent Supplies Food Household Office Medical Literature Other Professional Accounting & auditing Architect Medical Other Travel 1,675 14,619 11,168 2,704 8,762 2,561 3,000 16,626 4,044 1,934 1,141 6,550 6, , ,893 1,755 _ ,933 _ 1,691 2, , ,111 2,704 12,655 4,316 3,000 16,626 4,209 1,961 1,531 5,933 6,550 6,050 1, , , ,269 2,652 9,717 2,631 2,900 15,697 4,639 1, , ,000 6,162 4, ,533 Total other 81,600 17,204 98,804 91,029 Allocation of Depreciation Total functional expenses 10,183 $254,873 10,183 10,319 $17,204 $272,077 $243,119 The accompanying notes are an integral part of this statement.

10 Comparative Statement of Cash Flows Years Ended June 30,2005 and 2004 Cash flows from operating activities: Increase in net assets Adjustments to reconcile increase in net assets Depreciation Changes in operating assets & liabilities: (Increase) decrease in grant receivable Increase in other recievables Increase in accounts payable Increase (decrease) in payroll taxes payable Total adjustments ,838 $ 15,766 11,645 (18,873) 199 (936) (7,965) 10, (4) ,445 Net cash provided by operating activities 44,873 27,211 Cash flows from capital and related financing activities: Payments on shortterm financing Net acquisition of equipment Net cash used by capital and related financing activities (U17) 0.117) (11,505) (11,505) Net increase in cash and cash equivalents Cash and cash equivalents, beginning 43,756 31,302 15,706 15,596 Cash and cash equivalents, ending 75,058 $ 31,302 Supplemental data: Interest paid 259 The accompanying notes are an integral part of this statement.

11 Notes to Financial Statements (1) Summary of Significant Accounting Policies A. Nature of Activities Washington Street Hope Center, Inc. (the Corporation) was incorporated on July 25, 1988 and is a nonprofit organization as described in IRS Code Section 501(c){3) which was formed for the purpose of providing a 28day program of rehabilitation from substance abuse. The Corporation is governed by a board of directors, and employees consisting of two directors, a secretary, a cook, two counselors, and several program technicians. B. Financial Statement Presentation Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS No. 117, "Financial Statements of NotforProfU Organizations". Under SFAS No. 117, the Corporation is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. C. Basis of Accounting The financial statements have been prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables, and other liabilities. D. Description of Programs Hope Center The Hope Center provides longterm, highly structured residential treatment programs for alcoholic and drug dependent men who are economically unable to obtain needed treatment elsewhere. Fees range from assistance provided by the State of Louisiana, Department of Health and Hospitals, Office of Human Services, Division of Alcohol and Drug Abuse to direct payments from individual patients. E. Donated Services and Materials Contributions of materials, facilities, and services are recognized if they (a) create or enhance nonfmancial assets or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. These donated services and facilities were recorded at market value.

12 Notes to Financial Statements (Continued) F. Fixed Asset Depreciation Expenditures for physical properties are valued at historical cost and are being depreciated on a straightline method over the following estimated lives: Buildings Building improvements Vehicles & equipment Furniture & fixtures 25 years 10 years 5 years 5 years G. Compensated Absences The Corporation's policy relating to accumulated unpaid vacation, sick pay and other employee benefits indicates that each employee receives two to four weeks vacation leave each year depending on the length of employment. Employees also receive sick leave as requested each year. Accumulated absences are not accrued in these financial statements, as such amounts were considered immaterial at June 30, 2005, H. Income Taxes The Corporation is a nonprofit organization and is exempt from Federal income tax as an organization described in Section 501(c)(3) of the Internal Revenue Code. I. Functional Expenses Functional expenses have been allocated between Program Services and Supporting Services based on an analysis of personal time and space utilized for the related activities. J. Uncollectible Patient Fees Uncollectible amounts due for patient fees are recognized as bad debts through the establishment of an allowance account at the time information becomes available that would indicate the uncollectiblity of the particular receivable. The allowance for uncollectibles at June 30, 2005 was immaterial. 10

13 Notes to Financial Statements (Continued) K. Statement of Cash Flows The Corporation considers all highly liquid investments with a maturity of three months or less at the date of acquisition to be cash equivalents. L. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. M. Totals Memorandum Only Total columns on the financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. N. Contributions All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. In this case, the federal agency restricts the purpose of the support for only the care and treatment of the patients that are assigned by that agency. (2) Cash At June 30, 2005, the Corporation had cash and interestbearing deposits (book balances) totaling 575,058. These deposits are stated at cost which approximates market. These deposits (bank balances) at June 30, 2005, totaled $77,062, and were fully secured from risk by federal deposit insurance. 11

14 Notes to Financial Statements (Continued) (3) Receivables The following is a summary of receivables at June 30, 2005 and 2004: Grant revenue receivable $33,653 $ 16,498 Federal Grant Receivable 1,718 Other receivables $35,605 $ 16,732 (4) Fixed Assets A summary of property and equipment at June 30, 2005 and 2004 follows: Buildings and improvements $ 183,158 $ 183,158 Equipment 53,300 52,900 Vehicles 16,700 16,700 Furniture and fixtures 12,107 11,390 Land 4, , ,148 Less: accumulated depreciation (145,295) (133,650) Net property and equipment 5123,970 $ 134,498 (5) Donated Materials. Services, and Capital Expenditures The value of donated materials, services, and capital expenditures included in the financial statements and corresponding expenditures for the years ended June 30, 2005 and 2004 follows: Public support restricted (Contributions): Donated food supplies $24,477 $ 15,353 Donated labor 475 Donated travel Donated Training 1,128 Total public support restricted $25,301 Si 7,

15 Notes to Financial Statements (Continued) Expenses: Hope Center Food supplies $ 24,477 $ 15,353 Labor 475 Travel Training 1,128 Total Hope Center $25,301 $17,636 (6) Related Party Transactions A. James Hamilton is the finance director for Washington Street Hope Center, Inc. For the year ended June 30, 2005, Washington Street Hope Center, Inc. purchased $2,189 of insurance policies through an insurance company that is owned by Mr. Hamilton's son. This amount was reported as insurance expense. B. Jo Hamilton, also a director for Washington Street Hope Center, Inc., leases the Hope Center building personally for $250 per month. (7) Litigation The Corporation was not involved in any litigation at June 30, (8) Federal Awards The Corporation is funded largely by reimbursements under its contractual agreement with the State of Louisiana Department of Health and Hospitals, and Office of Human Services, which consist of federal funds. These funds are subject to review and audit by the grantor. Such audits could result in a request for reimbursement by the grantor for expenditures disallowed under the terms and conditions of the appropriate agency. In the opinion of management, the amount of disallowance, if any, would not be significant to the financial statements. 13

16 Notes to Financial Statements (Continued) (9) Fair Values of Financial Instruments The Corporation's financial instruments, none of which are held for trading purposes, include cash and grant receivables. The Corporation estimates that the fair value of all financial instruments at June 30, 2005 does not differ materially from the aggregate carrying value of its financial instruments recorded in the accompanying statement of financial position. 14

17 COMPLIANCE AND INTERNAL CONTROL 15

18 C Burton Kolder, CPA' Russell F Champagne. CPA' VictorR Slaven, CPA' Conrad O. Chapman, CPA P. Troy Courville, CPA' Gerald A Thibodeaux, Jr., CPA' Robert S Carter. CPA Allen J. LaBry, CPA Harry J. Closfio. CPA Penny Angalie Scruggins, CPA Christine L. Cousin. CPA Mary T. Thibodeaux. CPA Kelly M. Doucet. CPA BSe h y a 'cpa A cva KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS D.. r.u. MafkSVJIle, LA Phone {31 8) Pav pax f*1 K\ ' 31 > REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS WEBSITE y^w KCSRCPAS COM MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SOCIETY OF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS To the Board of Directors Washington Street Hope Center, Inc. We have audited the financial statements of the Washington Street Hope Center, Inc. (a nonprofit organization) as of and for the year ended June 30, 2005, and have issued our report thereon dated October 24, 2005, We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Washington Street Hope Center, Inc.'s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Washington Street Hope Center Inc.'s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstate merits in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. 183 SwiK Beadle Road Lafayette,LA Phone (337) Fax (337) East Bridge Street Breaux Bridge, LA Phone (337) Fix (337) Easl Waddil Marksville. LA Phone(318) Fax (31S) David Drive, Suite 105 Morgan City, LA Phone (985) 3B42020 Fax (985) W Cotton Street Ville Platte, LA 705S6 Phone (337) fw (337) W Sixth Avenue Oberlin, LA Phone (337) Fix ( South Main Street Abbeville, LA Phone (337) FBX (337)

19 This report is intended solely for the information and use of the Board of Directors and management, others within the organization and grant awarding agencies and the Legislative Auditor and is not intended to be and should not be used by anyone other than these specified parties. Kolder, Champagne, Slaven & Company, LLC Certified Public Accountants October 24,

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