06 JAN-l* AH 10:56 - app1.lla.state.la.usapp1.lla.state.la.us/PublicReports.nsf/B5CD6307C08B654B... · TASHA A. RALEY, CPA ... Furniture and Equipment 46,615 Less: Accumulated Depreciation

RECEIVEDLEGIS! ATIVE AUDITOR

06 JAN-l* AH 10:56

ACADIANA ARTS COUNCIL, INC.

FINANCIAL STATEMENTS ANDSUPPLEMENTARY INFORMATION

FOR THE YEAR ENDED JUNE 30, 2005

Unde. jr provisions of state law, this report is a publicdocument, Acopy of the report has been submitted tothe entity and other appropriate public officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.

Release Date_ 2 - /- 2- <=> o £,


TABLE OF CONTENTS

INDEPENDENT AUDITORS'REPORT 2

FINANCIAL STATEMENTSStatement of Financial Position 3Statement of Activities 4Statement of Functional Expenses 6Statement of Cash Flows 7Notes to Financial Statements 8

REPORT ON COMPLIANCE AND ON INTERNAL CONTROLOVER FINANCIAL REPORTING BASED ON AN AUDIT OFFINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITH GOVERNMENT AUDITING STANDARDS 12

iSUPPLEMENTARY INFORMATION

Schedule of Findings and Questioned Costs 14Summary Schedule of Prior Year Findings 15

WRIGHT, MOORE, L>EHART, DUPUIS 8c HUTCHINSON, L.L.C.

JOHN W. WRIGHT, CPA*JAMES H. DUPUIS, CPA, CFP*JOE D. HUTCHINSON, CPA*JAN H. COWEN, CPA"LANCE E. CRAPPELL, CPA*PAT BAHAM DOUGHT, CPA*MICAH R. VIDRINE, CPA*TRAVIS M. BRINSKO, CPA*RICK STUTES, CPA, CVA

* A PROFESSIONAL CORPORATION

RETIRED

M. TROY MOORE, CPA*MICHAEL G. DeHART, CPA, CVA, MBA*

Certified Public Accountants

100 Petroleum Drive, 70508P. O. Box 80569 • Lafayette, Louisiana 70598-0569

(337)232-3637 • FAX (337) 235-8557www.wrnddh.com

CHRISTINE R. DUNN, CPAANDRE D. BROUSSARD, CPA

MARY PATRICIA KEELEY, CPAKRISTIE C. BOUDREAUX, CPA

BRIDGET B. TILLEY, CPA, MTDAMIAN H. SPIESS, CPA, CFP

TASHA A. RALEY, CPAPATRICK WAGUESPACK, CPA

CHIP CANTRELL, CPADANE P. FALGOUT, CPA

ROBIN G. STOCKTON, CPA

INDEPENDENT AUDITORS' REPORT

Board of DirectorsAcadiana Arts Council, Inc.Lafayette, Louisiana

Gentlemen:

We have audited the accompanying Statement of Financial Position of the Acadiana Arts Council, Inc. as ofJune 30, 2005, and the related Statements of Activities, Functional Expenses, and Cash Flows for the year thenended. These financial statements are the responsibility of the Organization's management. Our responsibilityis to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards of the United States ofAmerica and Government Auditing Standards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financialposition of Acadiana Arts Council, Inc. as of June 30, 2005, and the changes in net assets and cash flows for theyear then ended in conformity with generally accepted accounting principles of the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated December 16, 2005, onour consideration of Acadiana Arts Council, Inc.'s internal control over financial reporting and on itscompliance with laws and regulations.

Wright, Moore,<Dupuis & tfutchinson, LLC

WRIGHT, MOORE, DEHART,DUPUIS & HUTCHINSON, L.L.C.Certified Public Accountants

December 16, 2005


STATEMENT OF FINANCIAL POSITIONJUNE 30, 2005

ASSETS

CURRENT ASSETSCash and Cash Equivalents $ 110,428Grants Receivable 43,960Prepaid Expenses 3,154

Total Current Assets 157,542

PROPERTY AND EQUIPMENTArt Work $ 66,000Furniture and Equipment 46,615Less: Accumulated Depreciation (45,212)

Total Net Property and Equipment 67,403

OTHER ASSETSMarketable Securities 143,718

TOTAL ASSETS

The Accompanying Notes are an Integral Part of These Statements.- 3 -


STATEMENT OF FINANCIAL POSITIONJUNE 30, 2005

LIABILITIES AND NET ASSETS

CURRENT LIABILITIESAccounts PayableAccrued Payroll Liabilities

Total Current Liabilities

83,8531,236

$ 85,089

NET ASSETSNet Assets - UnrestrictedNet Assets - Temporarily Restricted

Total Net Assets

257,46426,110

283,574

TOTAL LIABILITIES AND NET ASSETS $ 368,663



STATEMENT OF ACTIVITIESFOR THE YEAR ENDED JUNE 30,2005

SUPPORT, REVENUES AND RECLASSIFICATIONS

GRANTSState of Louisiana Division of the ArtsLafayette City-Parish Consolidated GovernmentLafayette Parish School BoardTommy Comeaux Memorial FundWIBPACEAcadiana Center for the ArtsGrants - OtherNet Assets Released from Restrictions:

Satisfaction of Purpose Restrictions

TOTAL GRANTS

TemporarilyUnrestricted Restricted

$ 379,894 $74,727

106,742

34,18127,379

211,83483,309

11,476

929,542

37,586

(11.476)

26,110

Total

$ 379,89474,727

106,74237,58634,18127,379

211,83483,309

955,652

CONTRIBUTIONS AND REVENUEGeneral ContributionsCorporateDonated AssetsDonated FacilitiesFacility RentalsSpecial Projects & MiscellaneousInterest IncomeNet Gain on Securities

Total Contributions and Revenue

33,97953,02666,000

162,0004,733

43,3411,9554,775

369,809

33,97953,02666,000

162,0004,733

43,3411,9554.775

369,809

TOTAL SUPPORT, REVENUES ANDRECLASSIFICATIONS 1,299,351 26,110 1,325,461

The Accompanying Notes are an Integra! Part of These Statements.- 4 -


STATEMENT OF ACTIVITIES - CONTINUEDFOR THE YEAR ENDED JUNE 30, 2005

TemporarilyUnrestricted Restricted Total

EXPENSESProgram ServicesAdministrative

Total Expenses

Change in Net Assets

Net Assets as of Beginning of Year

Net Assets as of End of Year

$1,145,341 $148,034

1,293,375

5,976

251,488

26,110

$1,145,341148,034

1,293,375

32,086

251,488

$ 257,464 $ 26,110 $ 283,574



STATEMENT OF FUNCTIONAL EXPENSESFOR THE YEAR ENDED JUNE 30, 2005

Grant ProgramsArts Grants For

TeachersBright New WorldsLousiana CrossroadsTouring CompaniesWorkshops and Special

EventsSalaries, Benefits and

Payroll TaxesAccounting and AuditingContract LaborDepreciationDues and SubscriptionsExhibit ExpenseFacilities Rent - DonatedGrand OpeningInsuranceMarketingOffice ExpensePostagePrintingProfessional FeesRepairs and MaintenanceStaff DevelopmentSuppliesTelephoneTommy Comeaux MemorialTravel and MealsUtilities

TOTAL EXPENSES

SUPPORTINGPROGRAM SERVICES SERVICES

AcadianaCenter for Community

the Arts Arts

$ - $ 79,682

--

39,976-

43,516 26,401

23,775 39,280-

18,261217 217221

54,72932,400 32,40020,92222,67631,76013,634

689-

1,77020,446

-857 857

4,41211,476

74645,471

Arts In DecentralizedEducation Arts Funding Administrative

$ - $ 260,283 $

14,96113,343

-33,999

16,940

87,796 55,392--

216 216--

32,400 32,400----

680735 89

--

21,491857 3,463712 712

-21 1,844

-

-

----

-

88,0882,900

-216

3,016-

32,400-

1,6901,433

12,801490972

---

857712

-2,459

-

$ 336.502 $ 230.289 S 223.471 $ 355.079 S 148.034



STATEMENT OF CASH FLOWSFOR THE YEAR ENDED JUNE 30,2005

CASH FLOWS FROM OPERATING ACTIVITIES:Increase in Net AssetsAdjustments to Reconcile Decrease in Net Assetsto Net Cash Used In Operating Activities:

DepreciationNet Gain on SecuritiesDonated Asset

Changes in Current Assets and Current Liabilities(Increase) Decrease in ReceivablesIncrease (Decrease) in Accounts Payable

$ 32,086

1,082(4,775)

(66,000)

75624,320

Total Adjustments

NET CASH PROVIDED BY OPERATING ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIES:Sale of SecuritiesPurchases of Securities

NET CASH USED IN INVESTING ACTIVITIES

NET INCREASE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

CASH AND CASH EQUIVALENTS, E)ND OF YEAR

(44,617)

53,809(103,935)

(12,531)

(50,126)

(62,657)

173,085



(A) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Nature of Activities - The Acadiana Arts Council, Inc. (the Council) serves aneight-parish region of Southwestern Louisiana, known collectively as Acadiana. The Councilserves a pivotal role in promoting the arts of the eight-parish service area, enhancing theorganizational development of the various cultural organizations, and creating new programs,projects, and opportunities for the arts to develop in southwest Louisiana. Serving as culturalenvironmentalists, the Council seeks to foster and nurture an atmosphere where the arts and artistscan flourish locally.

The Council is a nonprofit organization as described in Section 501(c)(3) of the Internal RevenueCode and is exempt from federal and state income taxes.

Public Support and Revenue - Grants and other contributions of cash and other assets arereported as temporarily restricted support if they are received with donor stipulations that limit theuse of the donated assets. When a donor restriction expires, that is, when a stipulated timerestriction ends or purpose restriction is accomplished, temporarily restricted net assets arereclassified to unrestricted net assets and reported in the Statement of Activities as "Net AssetsReleased from Restrictions." Restricted contributions whose restrictions are met in the samereporting period are reported as unrestricted.

Contributions of donated noncash assets are recorded at their fair values in the period received.Contributions of donated services that create or enhance nonfinancial assets or that requirespecialized skills, and are provided by individuals possessing those skills, and would typicallyneed to be purchased if not provided by donation, are recorded at their fair values in the periodreceived.

Fair Values of Financial Instruments - The following methods and assumptions were used bythe Council in estimating its fair value disclosures for financial instruments:

Cash and Cash Equivalents: The carrying amounts reported in the Statement of FinancialPosition approximate fair values because of the short maturities of those instruments.

Short-Term Investments: The fair values of investments are based on quoted market pricesfor those or similar investments.

Use of Estimates - The preparation of financial statements in conformity with generally acceptedaccounting principles of the United States of America requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure of contingentassets and liabilities at the date of the financial statements and the reported amounts of support,revenues and expenses during the reporting period. Actual results could differ from thoseestimates.

- 8 -


NOTES TO FINANCIAL STATEMENTSFOR THE YEAR ENDED JUNE 30,2005

(A) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Cash and Cash Equivalents - The Council considers all highly liquid investments with anoriginal maturity of three months or less, when purchased, to be cash equivalents. Cash and cashequivalents for purposes of the Statement of Cash Flows exclude permanently restricted cash andcash equivalents.

Marketable Securities - Marketable securities are composed of equity securities and are carriedat fair value.

Property and Equipment - Property and equipment are valued at historical cost if purchased.Donated assets are valued at their estimated fair value on the date donated. All acquisitions ofproperty and equipment in excess of $1,000 are capitalized.

Property and equipment are being depreciated over estimated useful lives of five to ten years usinga straight-line method, with one-half of a year's depreciation recognized in the years of acquisitionand disposal.

(B) TEMPORARILY RESTRICTED NET ASSETS

Temporarily restricted net assets are available for the following purpose:Tommy Comeaux Memorial Fund $26.110

Net assets were released from donor restrictions by incurring expenses satisfying the purpose ortime restrictions specified by donors as follows:

Purpose restriction accomplished:Tommy Comeaux Memorial Fund $ 11.476

(C) ACCOUNTS RECEIVABLE - GRANTS

As of June 30, 2005, grants receivable was composed of:

Lafayette City-Parish Government $18,586State of LA - Division of the Arts 14,801LEH 3,378DDA 7.195

Total $43.960

- 9 -


NOTES TO FINANCIAL STATEMENTSFOR THE YEAR ENDED JUNE 30,2005

(D) DONATED SERVICES AND FACILITIES

The Council receives a significant amount of donated services from unpaid volunteers who assistin fundraising and special projects. No amounts have been recognized in the Statement ofActivities because the criteria for recognition under SFAS No. 116 have not been satisfied. OnDecember 2, 2003 the Council executed a lease with the Lafayette Consolidated Government tobegin upon occupation of a newly constructed facility. The lease period is ten years with the rightto renew for three consecutive periods of five years each. Under the agreement, the Council willpay rent at the rate of $100 per year, as well as be responsible for payment of all insurance andmaintenance, including roof, heating and cooling and elevator systems. The estimated rental inthe amount of $162,000 has been reflected in the accompanying financial statements ascontributions with a like amount shown as facilities rent.

(E) DONATED ASSET

During the year, the Council received by donation the statue titled "Ms. Rose's Bar". The statuewas transported by Lafayette Consolidated Government and refurbished by the artist. The fairmarket value was estimated using similar sales by the artist. The value of the statue is estimated at$66,000.

(F) FUNCTIONAL ALLOCATION OF EXPENSES

The costs of providing the various programs and activities have been summarized on a functionalbasis in the Statement of Activities. Accordingly, certain costs have been allocated among theprograms and supporting services benefited.

(G) CONCENTRATIONS

The Council receives a substantial portion of its revenues from City, Parish and State grants. Anysubstantial change in any of these components could have adverse effects on the Council'sfinancial condition.

(H) PENSION PLAN

On October 1, 1999, the Organization adopted a Simplified Employee Pension Plan. The plancovers all full-time employees who have three years of service and are age 21 or older.Contributions to the plan each year are determined by the Board of Directors. The contributioncannot exceed fifteen percent of the employees' compensation or $30,000, whichever is less. Thecontributions to the plan for the year ended June 30, 2005 were $5,379.

-10,-


NOTES TO FINANCIAL STATEMENTSFOR THE YEAR ENDED JUNE 30, 2005

(I) COMPENSATED ABSENCES

The amounts for accrued vacation and sick pay are not reasonably estimable. Therefore, noaccrual has been recorded in the financial statements.

- 1 1 -

WRIGHT, MOORE, DEHART, DUPUIS & HUTCHINSON, L.L.C.

JOHN W. WRIGHT, CPA*JAMES H. DUPUIS, CPA, CFP*JOE D. HUTCH1NSON, CPA*JAN H. COWEN, CPA*LANCE E. CRAPPELL, CPA*PAT BAHAM DOUGHT, CPA*MICAH R. VIDRINE, CPA*TRAVIS M. BRINSKO, CPA*RICK STUTES, CPA, CVA

• A PROFESSIONAL CORPORATION

RCT1RED

M. TROY MOORE, CPA*MICHAEL G. DeHART, CPA, CVA, MBA*

Certified Public Accountants100 Petroleum Drive, 70508

P. O. Box 80569 • Lafayette, Louisiana 70598-0569(337)232-3637 • FAX (337) 235-8557

www.wmddh.com

CHRISTINE R. DUNN, CPAANDRE D. BROUSSARD, CPA

MARY PATRICIA KEELEY, CPAKRISTIE C. BOUDRE.AUX, CPA

BRIDGET B. TILLEY, CPA, MTDAMIAN H. SPIESS, CPA, CFP

TASHAA. RALEY.CPAPATRICK WAGUESPACK, CPA

CHIP CANTRELL, CPADANE P. FALGOUT, CPA

ROBIN G. STOCKTON, CPA

REPORT ON COMPLIANCE AND ON INTERNAL CONTROLOVER FINANCIAL REPORTING BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITH GOVERNMENT AUDITING STANDARDS

Board of DirectorsAcadiana Arts Council, Inc.Lafayette, Louisiana

We have audited the financial statements of Acadiana Arts Council, Inc. as of and for the year ended June 30,2005, and have issued our report thereon dated December 16, 2005. We conducted our audit in accordance withgenerally accepted auditing standards of the United States of America and the standards applicable to financialaudits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

1 ComplianceAs part of obtaining reasonable assurance about whether Acadiana Arts Council, Inc.'s financial statements arefree 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 offinancial statement amounts. However, providing an opinion on compliance with those provisions was not anobjective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed noinstances of noncompliance that are required to be reported under Government Auditing Standards.

Internal Control Over Financial ReportingIn planning and performing our audit, we considered Acadiana Arts Council, Inc.'s internal control overfinancial reporting in order to determine our auditing procedures for the purpose of expressing our opinion onthe financial statements and not to provide assurance on the internal control over financial reporting. Ourconsideration of the internal control over financial reporting would not necessarily disclose all matters in theinternal control over financial reporting that might be material weaknesses. A material weakness is a conditionin which the design or operation of one or more of the internal control components does not reduce to arelatively low level the risk that misstatements in amounts that would be material in relation to the financialstatements being audited may occur and not be detected within a timely period by employees in the normalcourse of performing their assigned functions. We noted no matters involving the internal control over financialreporting and its operation that we consider to be material weaknesses.

This report is intended for the information of management and the Legislative Auditor, However, this report isa matter of public record and its distribution is not limited.

t Vetfart,& Sfattkinson, LLC

WRIGHT, MOORE, DEHART,DUPUIS & HUTCHINSON, L.L.C.Certified Public Accountants

December 16,2005


SCHEDULE OF FINDINGS AND QUESTIONED COSTSFOR THE YEAR ENDED JUNE 30, 2005

We have audited the financial statements of the Acadiana Arts Council, Inc. as of and for the year endedJune 30, 2005, and have issued our report thereon dated December 16, 2004. We conducted our audit inaccordance with auditing standards generally accepted in the United States of America and the standardsapplicable to financial audits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States. Our audit of the financial statements of June 30, 2005 resulted in anunqualified opinion.

Section I - Summary of Auditors' Reports

A. Report on Internal Control and Compliance Material to the Financial Statements

Internal ControlMaterial Weaknesses Yes x NoReportable Conditions __Yes x No

ComplianceCompliance Material to Financial Statements Yes x No

Section II - Financial Statement Findings

None

Section III — Federal Award Findings and Questioned Costs.

This section is not applicable for the year ended June 30, 2005.

-14-


SUMMARY SCHEDULE OF PRIOR YEAR FINDINGSFOR THE YEAR ENDED JUNE 30,2005

PART I: FINANCIAL STATEMENT FINDINGS

There were no prior year findings.

-15-

Documents

06 JAN-l* AH 10:56 - app1.lla.state.la.usapp1.lla.state.la.us/PublicReports.nsf/B5CD6307C08B654B... · TASHA A. RALEY, CPA ... Furniture and Equipment 46,615 Less: Accumulated Depreciation