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FINANCIAL REPORT
West Baton Rouge Council on Aging, Inc. Port Allen, Louisiana
June 30,2010
Under provisions of state law, this report is a public document. Acopy ofthe 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 ^ U ^ 11
Michael R. Choate & Company CertiOed Public Accountants
FENANCLVL REPORT
West Baton Rouge Council on Aging, Inc. Port Allen, Louisiana
June 30,2010
TABLE OF CONTENTS
Financial Report
West Baton Rouge Council on Aging, Inc. Port Allen, Louisiana
June 30,2010
1. MANAGEMENTS DISCUSSION AND ANALYSIS 1
2. INDEPENDENT AUDITOR'S REPORT 9
3. BASIC FINANCIAL STATEMENTS
GOVERNMENT WIDE FINANCIAL STATEMENTS:
A Statennent of Net Assets 11
B. Statement of Activities 12
FUND FINANCIAL STATEMENTS:
C. Balance Sheet 13
D. Statement of Revenues, Expenditures and Changes in Fund Balances 14
E. Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Govemmental Funds to the Statement of Activities 15
F. NOTES TO THE FINANCIAL STATEMENTS 16
4. SUPPLEMENTARY FINANCIAL INFORMATION REQUIRED BY GASB STATEMENT 34:
• Budgetary Comparison Schedule - General Fund 25
• Budgetary Comparison Schedule - Title III B Fund 26
• Budgetary Comparison Schedule - Title III C-1 Fund 27
• Budgetary Comparison Schedule - Titie III C-2 Fund 28
• Budgetary Comparison Schedule- Millage 29
5. SUPPLEMENTARY FINANCIAL INFORMATION REQUIRED
BYGOEA:
• Schedule of Non-major Special Revenue 31
• Comparative Schedule of General Fixed Assets and Changes in General Fixed Assets 32
6. REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 33
7. CORRECTIVE ACTION TAKEN ON PRIOR YEAR FINDINGS 35
MANAGEMENT'S DISCUSSION AND ANALYSIS
West Baton Rouge Council on Aging, Inc.
The "Management's Discussion and Analysis" of the West Baton Rouge Council on Aging, Inc.'s (the Council) financiat performance presents a narrative overview and analysis of the Council's financial activities for the year ended June 30, 2010. Tills report highlights the current year's activities, resulting changes, and relevant facts. Please read this report in conjunction with basic financial statements, which follow this section.
FINANCIAL HIGHLIGHTS (see condensed statements on page 7)
Here are the financial highligfits:
The Council's assets exceeded its liabilities at the close of fiscal year 2010 by $629,992 (net assets) which represents a 27.5% increase from last fiscal year.
Cash was $670,135 at June 30,2010 compared to $522,441 at June 30.2009. This is an increase of $147,694 or 28%.
The Council's revenue increased $56,432 (or 6.8%) primarily due to an increase in property taxes of $52,988 and a net grant increase from Governor's Office of Elderly Affairs of $5,805. Other revenue decreased $2,361.
The Council's expenditures increased, $89,993 (or 13.6%) primarily due to an increase in personnel costs of $38,912, an increase in meals of $21,854, increase in services and supplies of $20,022, an increase in senior activities of $5,506 and an increase in accrued compensation.
As a result of subtracting total expenditures from total revenue, the Council's net assets increased by $135,925 this fiscal year. Last year the net assets increased $169,486.
OVERVIEW OF THE FINANCIAL STATEMENTS - What's Included
This discussion and analysis is intended to serve as an overview to the Council's basic financial statements. The Council's annual report consists of five parts: (1) management's discussion and analysis (this section) (2) basic financial statements (3) required supplementary infomiation, and (4) the optional section that presents combining statements for non-major govemmentai funds and other supplementary information and (5) various govemmental compliance reports and schedules by certified public accountants and management. The basic financial statements include two kinds of statements that present different views of the Council:
Government-wide Financial Statements
The government-wide financial statements (see Exhibits A and B) are designed to provide readers with a broad oven/iew ofthe Council's finances, in a manner similar to a private sector business. The statement of net assets presents information on all ofthe Council's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Council is improving or deteriorating. The statement of activities presents information showing how the Council's net assets change during each fiscal year (revenues less expenditures). All changes in net assets are reported as soon as the financial transaction occurs regardless ofthe timing ofthe related cash flows. Thus, revenues and expenditures are reported in this statement this fiscal year even though the resulting cash flow is in future fiscal years. The governmental activity of the Council is health and welfare which is comprised of various programs that include supportive services, nutritional services, utility assistance disease prevention, caregiver support and a multipurpose senior center in Port Allen, Louisiana.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. All of the fiinds of the Council are governmental funds.
Govemmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the govemment-wide financial statements, govemmental fund financial statements focus on current year inflows and outflows of cash, as well as on balances of spendable resources available at the end of the fiscal year. Both the governmental fund balance sheet and the govemmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to help with this comparison between govemmental funds and govemmental activities. (Exhibit D and E) The Council has presented the General Fund, Title I I I B - Supportive Services Fund, Title ill C-1- Congregate Meals Fund. Title 111 C-2 - Home Delivered Meals Fund, Millage Fund and Senior Center Fund as major funds. (Exhibit C & D) All non-major governmental funds are presented in one column, titled Total Non-Major Funds". Combining financial statements ofthe non-major funds can be found in the Combining Fund Statements that follow the basic financial statements (Page 31).
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding ofthe data provided in the govemment-vvide and fund financial statements. The notes to the financial statements can be found in Exhibit F of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary infonnation that further explains and supports the information in the financial statements. The Governmental Accounting Standards Board (GASB) Statement No. 34 requires budgetary comparison schedules for the General Fund and each major Special Revenue Fund that has a legally adopted budget (Pages 25 to 29). In addition to these required elements, the Council has a section of supplementary infonnation. The Governor's Office of Elderly Affairs (GOEA) has required the Council to present combining statements that provide details about our non-major governmental funds and details about capital assets and the changes in capital assets. This information will be used by GOEA to verify the accuracy of infonnation submitted to them during the year and to help monitor certain compliance requirements set forth in the grants that it has with the Council (Page 31 and 32).
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted eariier, net assets serve as a useful indicator of the Council's financial position. As of June 30,2010, assets exceeded liabilities by $629,992. A large portion ofthe Council's net assets (106%) reflects its cash position. The Council has a strong cash position.
Special Revenue Fund Budgetary Highlights
The budget was amended one time during the year. The primary reasons for amending the budget were to comply with the Council's grants for GOEA due to unanticipated changes in expenditures.
During the year, actual expenditures differed from budgetary estimates. Required supplementary information budgetary comparison schedules were prepared for the General Fund and each major Special Revenue Fund (Page 25 to 29).
CAPITAL ASSETS
The Council's investment in capital assets for its governmental activities as of June 30,2010, amounts to $14,512 (net accumulated depreciation). This investment in capital assets includes office furniture, fixtures, vehicles, machinery and equipment (see table below).
2010 2009 Office fumiture, fixtures
and equipment $ 2,281 $ 2,281 Vehicles 150,196 150.196
s 2,281 150,196
152.477
(137,965)
$ 14,512
Subtotal 152.477 152,477
Less accumulated depreciation (137,965) (133,986)
Totals $ 14.512 $ 18,491
Additional information on the Council's capital assets can be found in the Note 1 (C) and 7, Exhibit F of this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
The Council receives most of its funding from local property taxes. Additional funding is from federal and state agencies. Because of this, the source of income for the Council is consistent. However, some of the Council's grants and contracts are contingent upon the level of sen/ice provided by the Council, and therefore, those revenues are not fixed. There have been no significant changes to the funding levels or terms of the grants and contracts. The Govemor's Office of Elderiy Affairs (GOEA) has approved the Council's budget for fiscal year 2010-2011. There are no plans to add any significant programs for next fiscal year.
The Executive Director and Board of Directors considered the following factors and indicators when setting next year's budget, rates, and fees. These factors and indicators include:
• Actual expenditures from previous fiscal year in relation to expected needs in the current year.
• Consideration of funding to be received from GOEA. • The Ad Valorem Tax revenue budgeted represents the estimated
amount ofthe October 2010 assessment, which the Council will receive, for the most part, in January 2011.
• Interest revenues have been budgeted as decreasing. • Salaries and benefits are based on the number of employees
needed to perform necessary services and the related benefits. • Travel rates in accordance with state travel regulations. • Services the Council will provide along with estimated service
costs. • Estimate of operation supplies needed to perfomi necessary
services. • Detail plan of equipment needed to be purchased. • Vehicle insurance based on quotes and contracts.
REQUESTS FOR INFORMATION
This financial report is designed to provkje a general overview ofthe CounaTs finances for all interested in the Council's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to:
Board of Directors Susan Devecka West Baton Rouge Council on Aging, Inc. P.O. Box 122 Port Allen, Louisiana.70767 Phone (225) 383-0638
Condensed Statements of Net Assets June 30.
Cash Other cunent assets Capital assets
Total assets
2010 $ 670,121
5,980 14.512
$ 690.613
2009 $ 522,441
2.728 18,491
$ 543.660
$
Dollar Change
147,680 3.252
(3.979)
146.953
Accounts payable Accrued compensation
Total liabilities
16,686 43.949
17,890 31,703
60.635 49.593
(1.204) 12.246
11.042
Net Assets: Invested in capital assets, net Restricted Unrestricted Total net assets
14.512 610.199
5.281
18,491 470,337
5.239
(3,979) 139,862
42
$ 629.992 $ 494.067 $ 135,925
Governmental Activities Govermnental activities increased the Council net assets by $135,925. Key elements of this increase are as follows:
Condensed Changes in Net Assets
Revenues:
program revenues:
Operating grants and contribu^ons
General revenues: Property taxes &Bnts and contributions not restricted
Unrestricted investntent eamings Misceilaneuis
Total revenues
Expenses:
Health and welfors
Total expenses
Incraase (decrease) in net assets
Net assets beginning of year
Net assets end of year
$
$
June 30,
2010
92.767 $
749,649 40,600
977 1,432
885,425
749.500
135,925 494,067
629.992 $
2009
86,962 $
696,661
40,600 2.719 2,051
828.993
659,507
169,486
324.581
494.067 £
Dollar
Change
5.finS
52.988
-(1.742)
(619)
56,432
89,993
(33.561) 169.486
135,925
Total
Percent
Change
6.7%
7.6%
0.0% -64.1% -30.2%
§^%
13.6%
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the Council uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds
The focus ofthe Coimcil's governmental funds is to provide information on current year inflows, outflows, and balances of spendable cash and other resources. Such information is useful in assessmg the Council's cash flow requirements. In particular, unrestricted fund balance at year end may serve as a useful measure of a government's net resources available for spending next fiscal year. As ofthe end ofthe current fiscal year, the Council's govemmental funds reported combined ending fimd balances of $659,429, an increase of $152,152 in comparison with the prior year. An imreserved fund balance of $502,727 is available for spending at the Council's discretion. This includes fee Millage Fund. The remainder of fUnd balance is reserved to indicate that it is not available for new general spending because it has aheady been committed. This is reflected in Exhibit C.
The General Fxmd is the unrestricted operating fund ofthe Council. At the end ofthe current fiscal year, unreserved fimd balance ofthe general fimd was $5,281, while total fund balance reached $659,429 (Exhibit C). The fimd balance ofthe Council's General Fund increased by $42 dining the current fiscal year. (Exhibit D)
Other major funds, including Title III B - Supportive Services Fund and Title III C-2 -Home Delivered Meals Fund and Title III C-l Cot^egate Meals had a no change in fimd balances. These funds are reimbursed by federal and state grants. Expenditures that are not covered by the grants are covered by transfers fit)m the General Fund and Miiiage Fund.
MICHAEL R . C m m & COMPAINY. CPAS A P R O F E S S I O N A L C O B P O R A T I O N
2915 S. Sbetwood Forest Blvd., Suite B Baton Rouge. LA 70816 (225) 292-7434 www.dioatecpa.com Pax (22S) 293-3651
The Vilh^ Executive OfSce Suites 2895 Hwy. 190. Suite 230 MandeviUo,lA 70471 (985)674-9092 Fax{985)727-<701
Independent Auditor^s Report
West Baton Rouge Council on Aging, Inc. Port Allen, Louisiana, USA
We have audited the accompanying financial statements ofthe govemmental activities, each major fund, and the aggregate remaining fimd information of the West Baton Rouge Council on A ^ g , Inc. as of and for the year ended June 30, 2010, which collectively comprise the Council's financial statements as listed in the table of contents. These financial statements are the responsibility of the West Baton Rouge Council on Aging's management. Our responsibility is to express opmions on these financial statements based on oui* audit.
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 Govemment Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtam reasonable assurance about whether the financial statements are Gree 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 audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, m all material respects, the respective financial position of the govemmental activities, each major fimd, and the aggregate remaining fund infonnation of the West Baton Rouge Council on Aging, Inc., as of June 30, 2010, for the year then ended in conformity with accounting principles generally accepted in the United States of America.
The accompanying required supplementary information, such as "Management's Discussion and Analysis" and "Budgetary Comparison Information" are not a required part ofthe basic fmancial statements but are supplementary information required by accountmg principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.
In accordance with Government Auditing Standards, we have also issued our report dated November 8, 2010, on our consideration of West Baton Rouge Council on Aging, Inc.'s intemal control over financial reporting and our tests of its compliance with certmn pro^dsions of laws, regulations, contracts and grants. That report is an integral part of an audit performed m accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the West Baton Rouge Council on Aging's financial statements. The accompanying supplementary information, as described in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information, have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Michael R Choate & Company CPAs
November 8,2010
10
GOVERNMENT WIDE FINANCIAL STATEMENTS
Exhibit A
GOVERNMENT WIDE STATEMENT OF NET ASSETS
WEST BATON ROUGE COUNCIL ON AGING, INC PORT ALLEN, LOUISIANA
June 30,2010
Assets Cash Grants and contracts receivable Capital assets, net of accumulated depreciation
Governmental Activities
$670,121 5,980
14,512
Total Assets $ 690,613
Liabilities Accounts payable Accmed compensated absences
$ 16,686 43,949
Total Liabilities 60,635
Net Assets Invested in Capital Assets Restricted for:
Utility Assistmice Millage
Unrestricted
14,512
4,552 605,647
5,281
Total Net Assets $ 629,992
The accompanying notes are an integral part of this statement 11
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Exhibit E
Reconciliation ofthe Statement of Revenues, Expenditures and Changes in Fund Balances of Govemmental
Funds to the Statement of Activities West Baton Rouge Council on Aging, Inc.
Port Men, Louisiana
Year Ended June 30,2010
Net Increase (Decrease) in fiind balances - total govenuoental funds $ 152,150
Governmental fimds report capital outlays as ejq^enditures. However, in the Statement of Activities the cost of these assets is allocated ov^ their estunated useful lives and reported as depreciation expense. This is the amount by which capital outlays $0 di£fers from depreciation ($3979) in the current period. (3,979)
Some Kq)enses reported in the Statement of Activities do not require tiie use of current financial resources and therefore are not reported as expenditures m govemmental funds:
Compensated absences (12.246)
Increase (Decrease) ofnet assets of govemmental activities $135,925
15
Exh ib i t F continued
NOTES TO FINANCIAL STATEMENTS
West Baton Rouge Council on Aging, Inc. Port Allen, Louisiana
June 30. 2010
Note 1 - Summary Of Significant Accountino Policies
a. Statement of Presentation:
The accompanying financial statements confomi to generally accepted accounting principles for local government units as prescribed by Statement 1. Govemmental Accounting and Flnandal Reporting Principles published by the National Council on Govemmental Accounting, and Audits of State and Local Govemmental Units, the industry audit guide issued by the American Institute of Certified Public Accountants.
The local councils on the aging were created under Act No. 456 of 1964 for the welfare of the aging people in their respective parish.
b. Fund Accounting:
The accounts ofthe Council are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. Govemment resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The various funds presented in the financial statements in this report are as follows:
Governmental Fund tvoes
Govemmental funds are those through which most governmental functions ofthe Council are financed. The acquisition, use and balances ofthe Council's expendable financial resources and the related liabilities are accounted for through govemmental funds. The measurement focus is upon determination of changes in financial position, rather than upon net income determination. The following are the Council's governmental funds:
16
Exhibit F continued
Note 1 - Summafv Of Sionrficant Accounting Policies (continued)
Governmental Fund (continued):
General Fund - The General Fund is the general operating fund of the Council. It is used to account for all financial resources except those required to be accounted for in another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments and major capital projects) that are legally restricted to expenditures for specified purposes. Most of the Council's special revenue funds are provided by GOEA. The Title 111 funds are provided by the United States Department of Health and Human Services - Administration on Aging through the Govemor's Office of Elderly Affairs which in tum "passes through" the funds to the Capital Area Agency on Aging and then to the Council.
The following are the funds which comprise the Council's Special Revenue Funds:
Malor Special Revenue Funds
A fund is considered major if it is the primary operating fund of the Council or it Its total assets, liabilities, revenues, or expenditures are at least 10% ofthe corresponding total for all funds of that category type.
Title Ill-B Supportive Services Fund
The Title Ill-B Supportive Services Fund is used to account for funds which are to provide a variety of social services; such as, information and assistance, access services, in-home services, community services, legal assistance, and outreach for people age 60 and older.
GOEA has established the criteria for defining a qualifying unit of service for each Title III program. Specific supportive social services, along with the number of units provided during the fiscal year, are as follows:
Units Information and Assistance Homemaker Recreation Transportation for people age 60 or older Utility Assistance Medical Alert
458 519
6806 11829
75 94
17
Exhibit F continued
Title III C-1 Fund
The Title III C-1 Fund Is used to account for funds which are used to provide nutritional, congregate meals to the elderiy in strategically located centers. The council served 11,314 meals this year.
Title III C-2 Home Delivered Meals Fund
Title III C-2 Fund is used to account for funds which are used to provide nutritional, home delivered meals to homebound older persons. The council delivered 45,385 meals this year.
Millage Fund
The Millage Fund is used to account for the revenue received from a West Baton Rouge Parish property tax. These funds significantly finance the Council's budget and activities.
Non Major Special Revenue Funds
Audit Fund The Audit Fund is used to account for funds received from the Govemor's Office of Elderly Affairs that are restricted to use as a supplement to pay for the cost of having an annual audit of the Council's financial statements.
Senior Center Fund The Senior Center Fund Is used to account for the administration of Senior Center program funds appropriated by the Louisiana Legislature to the (governor's Office of Elderiy Affairs, which in tum "passes through" the funds to the Council. This program provides community service centers at which older persons receive supportive services and participate in activities which foster their independence, enhance their dignity, and encourage their involvement in and with the community.
Title lll-D Fund The lll-D Fund Is used to account for funds used for disease prevention and health promotion activities of services, such as; (1) equipment and materials (scales to weigh people, educational materials, and exercise equipment), (2) home injury control, (3) medication management, (4) mental health, and (5) nutrition (assessment/screening, counseling, and education). The law directs the state agency administering this program to "give priority to areas of the state which are medically underserved and in which there are a large number of older individuals".
18
Exhibit F continued
Title III-E Fund The Titie III-E Fund Is used to account for funds which are used to provide continuing education services to assist individuals to acquire knowledge about sen/ices and/or care giving role and needs.
Supplemental Senior Center Fund The Louisiana Legislature appropriated additional money for various councils on aging through the state to be used to supplement the primary state grant for senior centers. West Baton Rouge Council on Aging, Inc. was one ofthe parish councils to receive a supplemental grant. These funds are "passed through" the Governor's Office of Elderly Affairs.
Utility Assistance Fund
The Utility Assistance Fund is used to account for the administration of programs that are sponsored by local utility companies. The companies collect contributions from service customers and employees and remit the funds directly to the Capital Area Agency on Aging (CAAA), which In turn remits funds relating to West Baton Rouge Parish to the Council. These funds are used to provide financial assistance to the elderly for the payment of their utility bills.
c. Capital Assets:
The accounting and reporting treatment applied to tiie capital assets associated with a fund are determined by its measurement focus. Capital assets are long-lived assets that have been purchased or acquired with an original cost of at least $1,000 and that have an estimated useful life of greater than one year. When purchased or acquired, these assets are recorded as capital assets in the Government-Wide Statement of Net Assets. In contrast, in the Fund Financial Statements, capital assets are recorded as expenditures of the fund that provided the resources to acquire the asset. If the asset was purchased, it is recorded in the books at its cost, if the asset was donated, then it is recorded at its estimated fair maricet value at the date of donation.
For capital assets recorded in the Govemment-Wide Financial Statements, depreciation is computed and recorded using the straight-line method for the assets estimated useful life. The estimated useful lives of the various classes of depreciable capital assets are as follows:
Building Improvements 20 years Equipment 5 -7 years Vehicles 5 years Computers 3 years
19
Exhibit F continued
Salvage values have not been estimated by management when calculating how much of an asset's cost needs to be depreciated except for vehicles. For that category or capital asset, management has used 10% of the vehicles initial cost as a salvage value estimate.
Depreciation is not computed or recorded on capital assets for purposes ofthe Fund Financial Statements.
d. Transfers:
Advances between funds which are not expected to be repaid are accounted for as ti^nsfers. In those cases where repayment is expected, the advances are accounted for as an asset or liability through the various due from and due to accounts.
e. Budget Policy:
Budgets for the programs are prepared by tiie Council's Executive Director and approved by the grantors and the Council's board of directors.
f. Compensated Absences:
For government wide financial statements, the Council's liability for accumulated unpaid vacation has been recorded. The liability has been detennined using the number of vested vacation hours for each employee multiplied by the employee's current wage rate at tiie end of the year. Accmed vacatbn benefits will be paid from fijture years' resources and will be recorded as fund expenditures in the various govemmental funds in the year in which they are paid or become due on demand to temiinated employees. The Council's sick leave policy does not provide for the vesting of sick leave where payment wouki have to be made to a terminated employee for any unused portion.
g. Management's Use of Estimates:
The preparation of financial statements in confonnity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates.
h. Revenue Recognition
Revenues are recorded in the Government-Wide Statements when they are eamed under the accrual basis of accounting. Revenues are recorded in the Fund Financial Statements using the modified accrual basis of accounting. In applying the susceptible to accrual concept using this basis of accounting, intergovemmental grant revenues, program service fees, and interest income usually both measurable and available. However, the timing and amounts of the receipts of public support and miscellaneous revenues are often difficult to measure; therefore, they are recorded as revenue in the period received.
20
Exhibit F continued
Note 2 - Board of Director's Compensation
The Board of Directors is a voluntary Board; therefore, no compensation has been paid to any member.
Note 3 - In Kind Financial Assistance
The Council receives nominal financial assistance from the West Baton Rouge Parish government. However, facilities and land are owned by the Parish. No rent is charged under a 99 year lease agreement which expires December 31, 2097.
Note 4 - Economic Dependency
The Council receives a portion of its revenue from funds provided through grants administered by the Louisiana (Governor's Office of Elderly Affairs, and the Capital Area Agency on Aging-District II, Inc. The grant amounts are appropriated each year by the federal and state govemments. If significant budget cuts aro made at the federal and/or state level, the amount of funds the Council receives could be reduced and have an adverse impact on its operations. Management is not aware of any actions that will adversely affect the amount of funds the Council will receive in the next fiscal year.
Note 5 - Transfers
Transfers in and out are listed by fund type for the year ended June 30,2010:
Transfers Out
Transfers In Special Revenue Fund: Title III B Titie III C-1 Title III C-2 Utility Assistance Title III D General Fund
Total Transfers Out
Senior Center
$ 25,000 -----
$ 25,000
Sup Senior Center
$ 3.100 -----
$ 3.100
Millage Fund
$ 162,893 10,975
131,855 2,206
12.418 27.179
$ 347,526
General Fund
$ 37.500 ----
823
$ 38,323
Total Transfers In
$ 228,493 10,975
131,855 2,206
12,418 28,002
$ 413.949
2 1
Note 6 - General Fixed Assets
The changes in the general fixed asset account group are as follows:
Furniture and Equipment
Vehicles
Exhibit F continued
Balance 6/30/2009
$ 2.281
150.196
$152,477
Additions
$
-
$
Deletions
$
_
$
Balance 6/30/2009
$ 2,281
150.196
$152,477
Note 7 - Deposits With Financial Institutions
At June 30, 2010, The Council had bank balances totaling $670,135. Bank balances totaling $250,000 are insured by federal deposit insurance while deposits of $420,135 are collateralized by securities held by the depository bank in the Council's name. This is considered as "Category 1" credit risk in accordance with GASB Statement 3.
GASB Statement 3 categories deposits into three categories of credit risk: (
1. Insured by FDIC or collateralized with securities held by the Council or by its agent in the Council's name. (Category 1)
2. Uninsured but collateralized with securities held by the pledging financial Institution's tmst department or agent in the Council's name. (Category 2)
3. Uninsured and uncollateralized; or collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Council's name; or collateralized with no written or approved collateral agreement (Category 3)
22
Exhibit F continued
Note 8 - Grants & Accounts Receivable
Accounts receivable at June 30,2010 included the following funds:
Special Revenue
Title IIIB Titie 111 C-1 Titie III D Titie C-2
2,809 917
1,319 935
Total $ 5,980
Note 9 - Income Tax Status
The Council, a non-profit corporation, is exempt from federal income taxes under Section 501(C)(3) ofthe Intemal Revenue Code.
23
SUPPLEMENTARY FINANCIAL INFORMATION
Required by GASB 34
24
SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES BUDGET (GAAP BASIS) AND ACTUAL
GENERAL FUND
WEST BATON ROUGE COUNCIL ON AGING, INC. PORT ALLEN. LOUISIANA
FOR THE YEAR ENDED JUNE 30,2010
REVENUES
Ad valorem taxes Intergovemmental:
Caprtal Area Agency on Aging District 11, Inc. State of Louisiana
Other: Miscellaneous Contributions Investment Income Contributions in Kind
Total Revenues
EXPENDITURES Current
Expenditures in Kind Personnel Operating services Operating supplies Meals Travel Capital outiay Utility assistance Other
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES USES
Operating transf^s in Operating transfers out
Excess (deficiency) of revenues and oUier sources
over expenditures and ottier uses
BUDGETS ORIGINAL
$
-37,500
--
1,000 -
38,500
----. ----
.
38,500
-(38.500)
$
$
$
FINAL
-37.500
• _
1.000 -
38.500
----. _ • --
38.500
_
(38.500)
-
ACTUAL
$
-37.500
1,432 -
978 -
39.910
-----_ --
29.546
29.546
10,364
28,002 (38,324)
$ 42
FAVORABLE (UNFAVORABLE)
VARIANCE
$
--
1.432
(22) -
1.410
-----. --
(29,546)
(29.546)
(28.136)
28,002 176
$ 42
25
SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES BUDGET (GAAP BASIS) AND ACTUAL SPECIAL REVENUE FUND - TITLE lll-B
WEST BATON ROUGE COUNCIL ON AGING, INC. PORT ALLEN, LOUISIANA
FOR THE YEAR ENDED JUNE 30.2010
REVENUES
Ad valorem taxes Intergovernmental:
Capital Area Agency on Aging District l l. Inc. State of Louisiana
Other Miscellaneous Contributions pFoJed Care Contilbutions In Kind
Total Revenues
EXPENDITURES Cunent:
Expenditures in Kind Personnel Fringe Travel Operating services Operating supplies Meals Capital outlay Utility assistance Other
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES USES
Operating transfers in Operating transfers out
Excess (deficiency) of revenues and other sources over expenditures and other uses
BUDGETS ORIGINAL FINAL
34.137
1.000
35.137
13.100
354.314
(319,177)
34,137
1.000
35.137
12.417
^ 9 J 2 9
(233,992)
319,177 233,992
ACTUAL
34,137
538
34.675
FAVORABLE (UNFAVORABLE)
VARIANCE
$
11.089
263.168
(228,493)
228,493
(462)
i4g2i
181,617 56.487 849
96.681 5.580
151,762 39.242 830
59,588 5,290
167.484 41,689 1,551
34.858 16,497
(6.722)
(2.447) (721)
24.730 (11.207)
1.328
5,S6i
5.499
(5.499)
1.
26
SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES BUDGET (GAAP BASIS) AND ACTUAL
SPECIAL REVENUE FUND -TITLE III C-1
WEST BATON ROUGE COUNCIL ON AGING, INC. PORT ALLEN, LOUISIANA
FOR THE YEAR ENDED JUNE 30,2010
REVENUES
Ad valorem taxes Intergovemmental:
Caprtal Area Agency on Aging District II, Inc. State of Louisiana
Ottier Miscellaneous Contilbutions Project Care Contributions in Kind
Total Revenues
EXPENDITURES Currenk
Expenditures in Kind Personnel Fringe Travel Operating services Operating supplies Meals Capital outiay Other
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES USES
Operating ti^nsfers in Operating transfers out
Excess (deficiency) of revenues and other sources overexpendibjres and ottier uses
BUDGETS ORIGINAL FINAL
10,810
3,000
13,810
(20.025)
20,025
10,810
3,000
13,810
(18.180)
18.180
ACTUAL
10.810
4,435
15.245
13.173 15.008
33 3.837 533
1.251
33,835
10,794 14.525
39 4.527 629
1.476
31.990
10.877 11,084
117 2,944 401
817
26.220
(10.975)
10.976
FAVORABLE (UNFAVORABLE)
VARIANCE
$
1.435
1.435
(83) 3.461
(78) 1.583
228
659
5.770
7.205
(7.205)
27
SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES BUDGET (GAAP BASIS) AND ACTUAL
SPECIAL REVENUE FUND - TtTLE 111 0-2
WEST BATON ROUGE COUNCIL ON AGING, INC. PORT ALLEN, LOUISIANA
FOR THE YEAR ENDED JUNE 30,2010
REVENUES
Ad valorem taxes Intergovemmental:
Capital Area Agency on Aging District II. Inc. State of Louisiana
Other. Miscellaneous Contilbutions Project Care Contributions in Kind
Total Revenues
EXPENDITURES Current
Expenditures in Kind Personnel Fringe Operating sen/ices Operating supplies Meals Travel Capital outiay Utility assistance Otiier
Total Expendihires
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES USES
Operating transfers in Operating ta^nsfers out
Excess (deficiency) of revenues and other sources over expenditures and otiier uses
BUDGETS ORIGINAL FINAL
4,422
1.000
5,422
(126,054)
126.054
ACTUAL
4,422
1,000
5.422
127.729
4.422
1.523
5.94S
55.205 29,313 11,508 1.598
30.000 100
3.752
131.476
43.290 26.478 12,475 1.733
45.000 108
4.067
133.151
50.759 19,507 8.757 1.197
54.799 350
2.431
137,800
(127.729) (131.855)
131,855
FAVORABLE (UNFAVORABLE)
VARIANCE
$
523
523
(7.469) 6.971 3.718
536 (9,799)
(242)
1.636
i i 649 )
(4,126)
4,126
28
SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES BUDGET (GAAP BASIS) AND ACTUAL SPECIAL REVENUE FUND - MILLAGE
WEST BATON ROUGE COUNCIL ON AGING, INC. PORT ALLEN, LOUISIANA
FOR THE YEAR ENDED JUNE 30,2010
REVENUES
Ad valorem taxes Intergovemmental:
Caprtel Area Agency on Aging District II, Inc. State of Louisiana
Ottier: Miscellaneous Contributions Project Care Contributions in Kind
Total Revenues
EXPENOrrURES Cunent:
BqKndltures in Kind Personnel Fringe Operating sen/ices Operating suppGes Meals Travel Capital outiay Utility assistance Otiier
Total Expenditures
Excess of Revenues over (undei) Expenditures
OTHER FINANCING SOURCES USES
Operating tiansfisrs in Operating transfers out
BUDGETS ORIGINAL
$ 670,701
-------
670.701
-110,851
6.873 35,000
-26,132
-12.000
-22.000
212.856
457,845
_ f414.871 >
FINAL
$ 666.337
-------
668.337
-165.342 29,949 70,000
-11.132
-12.000
-22.000
310.423
355,914
-
r328.955>
ACTUAL
$ 749.649
-------
749.649
-145,721 24,753 56.264 8.110
12.854 ---
2.313
250,015
499.634
_ f347.5261
FAVORABLE (UNFAVORABLE)
VARIANCE
$ 83.312
-------
83.312
-19.621 5.196
13,736 (8.110) (1.722)
-12.000
-19.687
60,408
143,720
_ (20.355)
Excess (deficiency) of revenues and other sources over expenditures and otiier uses S 42.g74 s 26959 s i 52 ina ^ 123.3g5
29
SUPPLEMENTARY FINANCIAL INFORMATION
Required by: Governor's Office of Elderly Affairs
30
.a
a s
£s I
I 8 B I
«
' S
§
' 8
5^
<0 N
l ^ ' ^ ^ S ^ « m —
I ? I -
8
S B
13
1
i 1' ^
3 3
M
s 3 ^ ^ 15 *,
• * '
M
^ w
««
COMPARATIVE SCHEDULE OF GENERAL HXED ASSETS AND CHANGES IN GENERAL FIXED ASSETS
West Baton Rouge Council on Aging, Inc. Port Allen, Louisiana
For the year ended June 30.2010
General Fixed Assets: Vehicles
Office Fumiture and Equipment
Total FUed Assets
Investment in General Fbced Assets:
Balance June 30.2009
$ 150,196 $
2,281
$ 152,477 $
Additions
•
.
.
$
. 1
peietipps
-
_
-
$
$
Balance 2010
150.196
2.281
152.477
Property acquired witti funds ftom-PCOA Section 18 Millage Titie 111 C-2 Titie 111 B Titie III C-1
5,312 -
147.165 --.
Total Investments in General Fixed Assets $ 152.477 $ - $
5.312
147.165
- $ 152.477
32
2915 S. Shcnvood Forest Blvd., Suite B
IcHAEL R. CBOAIE & COMPANY. cPAs ':i"S:^J^'%^^^^i^^ A P R O F E S S I O N A L C O R P O R A T I O N ^ ,„, ^ • «^ „ .
The Village Executive Office Suites 2895 Hwy. 190, Suite 230 Mandeville. LA 70471 (985)674-9092 Fax (985) 727-6701
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STAIHDARDS
West Baton Rouge Council on Aging, Inc. Port Allen, Louisiana
We have audited the financial statements of West Baton Rouge Council on Aging, Inc., as of and for the year ended June 30,2010 and have issued our report thereon dated November 8, 2010. We conducted our audit in accordance with auditing standaids generally accepted in the United States of America and the standards applicable to financial auJdits contained in Govemment Auditing Standards^ issued by the Comptroller General ofthe United States.
Intemal Control Over Financial Reporting
In planning and perfonning our audit, we considered West Baton Rouge Council on A^ng, Inc.'s intemal control over financial reporting as a basis for designing our auditing procedures for the putpose of expressing our opinions on the financial statements, but tiot for the purpose of e:!q3ressing an opinion on the effectiveness of West Baton Rouge Council on A ^ g , Inc.'s intemal control over financial reporting. Accordingly, we do not e ipress an opinion on the effectiveness of tlie West Baton Rouge Council on Aging, Inc.'s intemal control over financial reporting.
A deficiency in intemal control exists A^en the design or operation of a control does not allow management or employees, in the normal course of performing their assigned fimctions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in intemal control such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of intemal control over fmancial reporting was for the limited purpose described in the first paragr^h of this section and was not designed to identify all deficiencies in intemal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in intemal control over financial reporting that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether West Baton Rouge Council on Aging, Inc.'s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, 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 residts of om tests disclosed no instances of noncompliance or other matters that are required to be reported under Govemment Auditing Standards.
This report is intended solely for the information and use of management, others within the entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specific parties.
}rU^COCJZ~ Michael R. Choate & Company, CPAs Baton Rouge, Louisiana
November 8,2010
CORRECTIVE ACTION TAKEN ON PRIOR YEAR FINDINGS
West Baton Rouge Council on Aging, Inc. Port Allen, Louisiana
June 30,2010
There were no deficiencies found for the prior year.
35
Recommended