Catholic Charities Archdiocese of New Orleansapp1.lla.state.la.us/PublicReports.nsf/E803105127AEA...Assoctoied OfFicei in Principal Cilies of the United StoJes WWW. pncpo. com Report

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CATHOLIC CHARITIES ARCHDIOCESE OF NEW ORLEANS

AND SUBSIDIARIES

FINANCIAL STATEMENTS

JUNE 30, 2010 AND 2009

Under provisions of state law, this report is a public document. A copy 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 ofthe Legislative Auditor and, where appropriate, at the office of the parish cler1< of court.

Release Date 3 L j / /

| 19k | l l Postlethwaite M S S M M & Netterville

A Professional Accounting Corporation

www.pncpa.com

http://www.pncpa.com


AND SUBSIDIARIES

FINANCIAL STATEMENTS

JUNE 30, 2010 AND 2009

C O N T E N T S

Page

Report of Independent Auditors I

Financial Section:

Consolidated Statements of Financial Position 3

Consolidated Statements of Activities 4

Consolidated Statements of Functional Expenses 5

Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements 7

Supplementary Financial Information:

Consolidating Statements of Financial Position 26

Consolidating Statement of Activities - 2010 27

Consolidating Statement of Activities - 2009 29

Consolidating Statement of Functional Expenses - 2010 31

Consolidating Schedule of Activities by Program Services - 2010 33

Schedule of Support, Revenue, and Expenses Prepared for the United Way for the Greater New Orleans Area 35

'S Postlethwaite & Netterville

A Professional Accounting Corporation Assoctoied OfFicei in Principal Cilies of the United StoJes

WWW. pncpo. com

Report of Independent Auditors

Most Reverend Gregory M. Aymond and the Board of Directors, Catholic Charities Archdiocese of New Orleans and Subsidiaries, New Orleans, Louisiana

We have audited the accompanying consolidated statements of financial position of Catholic Charities Archdiocese of New Orleans (the Agency) and Subsidiaries (nonprofit organizations) as of June 30, 2010 and 2009 and the related consolidated statements of activities, functional expenses, and cash flows for the years then ended. These financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States and the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are fi-ee of material misstatement. We were not engaged to perform an audit ofthe Agency's internal control over financial reporting. Our audit included consideration of intemal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Agency's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position ofthe Agency at June 30, 2010 and 2009, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States.

In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2010 on our consideration ofthe Agency's intemal control over fmancial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the intemal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

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30th Floor - Energy Centre • 1100 Poydras Street • New Orleans, LA 70163-3000 • Tel: 504.569.2978 One Galleria Blvd., Suite 2100 • Metairie, LA 70001 • Tel: 504.837.5990 • Fax: 504.834.3609

Our audits were perfomied for the purpose of fonning an opinion on the basic consolidated financial statements of Catholic Charities Archdiocese of New Orleans and Subsidiaries taken as a whole. The supplemental information contained on pages 26 through 34 is presented for purposes of additional analysis and is not a required part of the basic consolidated financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic consolidated financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic consolidated financial statements taken as a whole. The supplemental information in the schedule of support, revenue, and expenses prepared for the United Way for the Greater New Orleans Area contained on page 35 is presented for purposes of additional analysis and is not a required part ofthe basic financial statements of the Agency. Such information has not been subjected to the auditing procedures applied in the audit of the basis financial statements, and accordingly, we do not express an opinion on it.

Metairie, Louisiana December 15, 2010

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P&N

CATHOLIC CHARITIES ARCHDIOCESE OF NEW ORLEANS AND SUBSIDIARIES

NEW ORLEANS, LOUISIANA

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

June 30, 2010 and 2009

ASSETS

2010 2009

Cash Program accounts receivable Contributions receivable:

Pledges United Way

Due from related party Other receivables Undistributed food on hand Prepaid expenses and deferred charges Investments Property and equipment - net

Total assets

LIABILITIES AND NET ASSETS

Liabilities: Accounts payable and accrued expenses Deferred revenue Unemployment accrual Accrual for uninsured claims Loans payable Funds held for others

Total liabilities

Net assets: Unrestricted Temporarily restricted Permanently restricted

Total net assets

Total liabilities and net assets

See notes to consolidated fmancial statements.

7,290,681 5,300,620

1,252,194 1,326,596

1,618,785 2,303,800

996,910 10,601,868 26,061,416

6,776,307 6,276,128

4,134,970 1,228,151

429,900 1,591,626 1,962,669

287,778 10,846,393 20,454,000

$ 56,752,870 $ 53,987,922

$ 3,116,187 137,671 39,373

1,367,500 5,190,204

282,371

10,133,306

28,285,972 16,281,205 2,052,387

46,619,564

$ 56,752,870

$ 3,175,395 59,501

151,784 3,207,500

103,612 221,893

6,919,685

25,413,733 19,743,699 1,910.805

47,068.237

$ 53,987,922

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CATHOLIC CHARITIES ARCHDIOCESE OF NEW ORLEANS AND SUBSIDIARIES NEW ORLEANS, LOUISIANA

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended June 30, 2010 and 2009

2010 2009

Cash Flows from Operating Activities Change in net assets £ (448,673) $ (7,467,861) Adjustments to reconcile change in net assets to net cash provided by operating activities:

Depreciation Amortization (Gain) loss on investments, net Provision for uninsured claims Gain on exchange transaction Loss on disposal of property and equipment Change in assets and liabilities:

Accounts receivable Prepaid expenses and deferred charges Undistributed food on hand Accounts payable and accrued expenses Deferred revenue

Net cash provided by operating activities

Cash Flows from Investing Activities (Purchases) sale of investments, net Purchases of property and equipment Proceeds from sale of property and equipment

Net cash used in investing activities

Cash Flows from Financing Activities Funds held for the accounts of others Payment of legal settlements Repayment of debt

Net cash used in financing activities

Net increase in cash

Cash Beginning of year End of year

Supplemental Disclosure of Cash Flow Information Cash paid during the year for interest expense

Non-Cash Transactions

Donated software and vehicles

During the year ended June 30, 2010, Second Harvest acquired a warehouse in a non cash exchange transaction. Second Harvest acquired a warehouse, land and assumed the debt in the transaction in exchange for land and building it ovmed. The debt assumed totaled $5,163,947 (note 7).

See notes to consolidated financial statements.

-6-

1,830,108 11,418

(1,357,946) 257,590 (530,071)

4,162,580 (720,550) (341,131) (171,619) 78,170

2,769,876

1,602,471 (1,743,506)

(141,035)

60,478 (2,097,590)

(77,355)

(2,114,467)

514,374

6,776,307 S 7,290,681 $

$ 205,229 $

$ 194,121 S

1,765,884 11,418

2,626,596 557,500

829,824

9,387,032 (50,983) 186,241

(3,817,443) (37,111)

3,991,097

(366,500) (3,203,728)

12,642

(3,557,586)

21,110

(24,502)

(3,392)

430,119

6,346,188 6,776,307

11,744

182,826


NEW ORLEANS, LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30.2010 AND 2009

1. Organization and Significant Accounting Policies

Catholic Charities Archdiocese of New Orleans (the "Agency"), a not-for-profit charitable organization ofthe Roman Catholic Church ofthe Archdiocese of New Orleans (the "Archdiocese"), operates health and community-based programs and provides administrative support and financial management services to separately operated charitable programs which it sponsors. The accompanying financial statements include the accounts of all charitable programs which it operates or sponsors.

The Agency has the ownership of PHILMAT, Inc., PACE Greater New Orleans, and Second Harvest Food Bank of Greater New Orleans and Acadiana as follows:

• PHILMAT, Inc. ("PHILMAT") was organized to provide health and community services to individuals within Louisiana. PHILMAT acts as local agent for the commodity supplemental food and warehouse program. Food for Families/Food for Seniors. Under this program, food provided by the United States Department of Agriculture (U.S.D.A.) is distributed by PHILMAT to eligible women, infants, children, and senior citizens, who are classified as low income and vulnerable to malnutrition.

• PACE Greater New Orleans ("PACE") is the corporate title for the Program for All-inclusive Care for the Elderly, a national model of healthcare for seniors. PACE was organized to provide community services such as medical treatment, social services, meals, activities, and transportation, allowing seniors to spend their final years at home rather than in a nursing home.

• Second Harvest Food Bank of Greater New Orleans and Acadiana ("Second Harvest") is a certified member of Feeding America. Its fimction is to help relieve the problem of hunger in Louisiana through the distribution of food and related products to qualified charitable institutions.

o Second Harvest 700 Edwards, LLC was incorporated as a non-profit limited liability company in accordance with the Delaware Limited Liability Company Act, as amended, on December 29, 2009. Second Harvest is the sole equity member and the Agency is a special member.

The financial statements of each of these subsidiaries are included in the consolidated financial statements. All significant inter-organizational accounts and transactions have been eliminated.

Income Taxes

The Agency and Subsidiaries are nonprofit corporations organized under the laws of the State of Louisiana. They are exempt from Federal income tax under Section 501(c)(3) ofthe Intemal Revenue Code, and qualify as organizations that are not private foundations as defined in Section 509(a) ofthe code.

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NEW ORLEANS. LOUISIANA


JUNE 30.2010 AND 2009

1. Organization and Significant Accounting Policies (continued)

The Agency and Subsidiaries apply a "more-likely-than-not" recognition threshold for all tax uncertainties. This approach only allows the recognition of those tax benefits that have a greater than fifty percent likelihood of being sustained upon examination by the taxing authorities. The Agency and Subsidiaries have reviewed their tax positions and determined there were no outstanding or retrospective tax positions with less than a 50% likelihood of being sustained upon examination by the taxing authorities.

The Agency and Subsidiaries' tax returns for the years ended June 30, 2009, 2008 and 2007, remain open and subject to examination by taxing authorities. The Agency and Subsidiaries' 2010 tax returns have not been filed as ofthe report date.

Basis of Accounting

The consolidated financial statements of the Agency and Subsidiaries are prepared on the accrual basis of accounting.

Financial Statement Presentation

GAAP requires reporting of information regarding financial position and activities according to three classes of net assets: unrestricted, temporarily restricted, and permanently restricted net assets, based on donor stipulations and restrictions placed on contributions, if any. Accordingly, net assets and changes therein are classified and reported as follows:

• Unrestricted net assets - Contracts for services, contributions, and other revenues and expenditures of funds for the general operation of its programs.

• Temporarily restricted net assets - Contributions and other revenues specifically authorized by the donor or grantor to be used for specific purposes or to benefit specific accounting periods.

• Permanently restricted net assets - Contributions with donor-imposed restrictions that stipulate that resources be maintained permanently, but permits the use of all or part of the income derived.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue, income and expenses during the reporting period. Actual results could differ from those estimates.

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JUNE 30.2010 AND 2009


Contributions

Contributions are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence or nature of any donor restrictions. Support that is restricted by a donor is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of restrictions. When a restriction expires (that is, when a stipulated time restriction ends or a purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Donor restricted contributions whose restrictions are met in the same reporting period are reported as unrestricted support. The value of contributed goods and services has been recorded as support and revenue and expense in the period received, provided there is an objective basis for measurement ofthe value of such goods and services and they are significant and form an integral part of the efforts of the program.

Contributions Receivable

Contributions are recognized when the donor makes a promise to give to the Agency and Subsidiaries that is in substance, unconditional. Conditional promises to give are recognized when the conditions on which they depend are substantially met.

Investments

Investments in marketable securities with readily determinable fair values and all investments in debt securities are reported at their fair value based on available market quotes in the consolidated statements of financial position and as increases or decreases in unrestricted net assets unless their use is temporarily or permanently restricted by explicit donor stipulations or law. Unrealized gains that are restricted by donors are reported as increases in temporarily restricted net assets. Unrealized gains absence restriction and unrealized losses are reported as increases and decreases in unrestricted net assets.

Interest eamed on donor-restricted investments is reported based on the existence or absence of donor-imposed restrictions. The Agency's endowments provide for a certain percentage of current year eamings to be retumed to the endowment for perpetual investment. The return of these eamings is reported as increases in permanently restricted net assets. The remaining eamings are recorded as increases in unrestricted net assets and are available to the Agency for distribution in accordance with the endowment agreement or may be retumed to the endowment by the Agency for perpetual investment.

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NEW ORLEANS. LOUISUNA


JUNE 30.2010 AND 2009


Realized gains and losses, and declines in value judged to be other than temporary, are included in net appreciation (depreciation) of investments. Realized gains and losses on the sales of securities are detemiined using the specific-identification method. A decline in the fair value of investments below cost that is deemed to be other than temporary results in a charge to change in net assets and the establishment of a new cost basis for the investment.

Program Accounts Receivable

Program accounts receivable represent billings which are based primarily on cost reimbursement or unit cost contracts with various governmental agencies. Program accounts receivable are stated at the amount management expects to collect from outstanding balances. Management considered subsequent collection results and wrote off all year-end balances that were deemed to be not collectible. Accordingly, a valuation allowance was determined to be unnecessary.

Funds Held for Others

The Agency and Subsidiaries receive funds that are passed through to other third-parties. These amounts are held until requested by and reimbursed to the third-party.

Undistributed Food on Hand

Second Harvest's inventory is comprised of donated food and grocery product, U.S.D.A. commodities and purchased food and grocery product. Donated food inventory including food received, distributed and undistributed, is valued using the estimated fair value as determined by the Feeding America Product Valuation Survey prepared by KPMG, LLP on an annual basis. The report provides the average wholesale value of products donated to the network and is considered to be a reasonable basis upon which to estimate these amounts. The average wholesale value used for the years ended June 30, 2010 and 2009, was $1.60 per pound and $1.58 per pound, respectively.

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JUNE 30.2010 AND 2009


U.S.D.A. commodities are valued based on U.S.D.A. regulations. On February 18, 2010, the U.S.D.A. issued a policy memorandum providing updated guidance on assigning value to U.S.D.A. product. The memorandum allowed for the use of fair market value (FMV), U.S.D.A. purchase price, estimated cost-per-pound data provided by U.S.D.A., or U.S.D.A. commodity file cost as of a date specified by the distributing agency. The U.S.D.A. document references a food bank's FMV valuation as an acceptable valuation. Feeding America determined that the usage of the Feeding America Product Valuation Survey is fully permitted under these guidelines. Second Harvest adopted the FMV method of assigning value to its U.S.D.A. product for fiscal year 2010. For fiscal year 2009, Second Harvest used the U.S.D.A. average per pound valuation. The valuation for U.S.D.A. commodities received during the years ended June 30,2010 and 2009 was $1.60 and $0.56 per pound, respectively. The change in value was recorded as a change in estimate ofthe value ofthe U.S.D.A. food products in the consolidated statement of changes in net assets. For comparison purposes, if the Feeding America Valuation Survey was used in the year ended 2009, the impact would have been as follows:

As previously Feeding America reported at

at $1.59 per pound $0.56 per pound Difference Receipts $ 10,590,729 $ 3,816,754 $ 6,773,975 Distributions (9,935,195) (3,416,731) (6,518,464) Change $ 655,534 _$ 400,023 $ 255,511

Purchased food inventory is recorded at cost.

Property and Equipment

Property and equipment are carried at cost or, when acquired by donation or gift, at appraised values with subsequent additions at cost. The Agency and Subsidiaries' policy is to capitalize expenditures for these items in excess of $2,000. Lesser amounts are expensed. Depreciation is provided using the straight-line basis over the estimated useful lives of the depreciable assets. Leasehold improvements are amortized over the shorter ofthe lease term or the estimated useful lives ofthe improvements.

The estimated useful lives used in determining depreciation and amortization follow:

Lives in Classification

Buildings and improvements Leasehold improvements Equipment Vehicle

- 11 -

Years 20 10

3

-60 -40 ) -5




JUNE 30.2010 AND 2009


Donated Facilities and Services

Donations of facilities are recorded as support at their estimated fair value at the date of donation. Such donations are reported as unrestricted support unless the donor has restricted the donated assets to a specific purpose. Support arising from donated services is recognized if the services received (a) create or enhance long-lived assets, or (b) require specialized skills, provided by individuals possessing these skills, and would typically need to be purchased if not provided by donation.

During the years ended June 30, 2010 and 2009, the Agency and Subsidiaries recognized approximately $684,000 and $1.0 million, respectively, of donated facilities and services which are reflected in the consolidated statement of activities in the respective fimctional expenses categories. The Agency and Subsidiaries received other donated services in its various programs during the years ended June 30, 2010 and 2009. These services provided do not meet either criteria described above and are not reflected in the consolidated statement of activities.

Cash and Cash Equivalents

For the purposes of the statements of cash flows, cash and cash equivalents include bank deposits. The Agency and Subsidiaries' money market accounts are included in investments.

Functional Expenses

The costs of providing the various programs and activities have been summarized on a fimctional basis in the statement of activities. Accordingly, certain costs have been, allocated among the programs and supporting services benefited.

2. Contributions Receivable

Contributions and private grants receivable are included in the consolidated financial statements as contributions receivable and revenue ofthe appropriate net asset category. The effective interest rate used to discount the long-term contributions receivable is 4.73%. Contributions receivable as of June 30, 2010 are expected to be collected in the following periods:

In less than one year One to five years

Less unamortized discount Total

$

$

684,777 620,000

1,304,777 52,583

1,252,194

- 1 2 -




JUNE 30.2010 AND 2009

3. Investments

Investments ofthe various agencies ofthe Archdiocese have been pooled to maximize the return on the investments. Investments in the common investment pool consist primarily of debt and equity securities and mutual fund investments. The amounts recorded in the consolidated statement of fmancial position represent the Agency and Subsidiaries' share of the pool. The following summarizes the market value and the investment retum for the years ended June 30:

Balances at June 30

For the year ended June 30, Unrealized gain (loss) on investments Realized gain (loss) for the year

Interest and dividend income

The current and long-term value of investments at June 30, 2010 is $6,859,452 and $3,742,416, respectively. The current and long-term value of investments at June 30, 2009, is $6,105,024 and $4,741,369 respectively.

4. Fair Value of Financial Instruments

U.S. generally accepted accounting principles (GAAP) defines fair value, establishes a framework for measuring fair value, and expands disclosure about fair value. Fair value concepts are applied in recording investments. GAAP establishes a hierarchy which prioritizes inputs to valuation techniques used to measure fair value. The term "inputs" refers broadly to the assumptions that market participants would use in pricing an asset or liability. Inputs may be based on independent market data ("observable inputs") or they may be intemally developed ("unobservable inputs"). The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad categories. These levels include Level 1, unadjusted quoted prices in active markets for identical assets or liabilities; Level 2, directly or indirectly observable inputs other than quoted prices for the asset or liability, such as the quoted market prices for similar assets or liabilities; and Level 3, unobservable inputs for use when little or no market data exists, therefore, requiring an entity to develop its own assumptions. The asset's or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use ofthe unobservable inputs.

$

$

2010

10,601,868

1,080,820

277,126

1,357,946

332,761 $ 1,690,707

$

$

2009

10,846,393

(2,535,595)

(1,712)

(2,537,307)

337,270 $ (2,200,037)

- 1 3 -




JUNE 30.2010 AND 2009

4. Fair Value of Financial Instruments (continued)

Investments of the Agency and Subsidiaries are held in pooled assets and separately invested portfolios. The Agency and Subsidiaries' investments are in Portfolio A ofthe pool. The custodian of this portfolio uses independent pricing services, where available, to value the securities included in this portfolio. If an independent pricing service does not value a security or the value is not, in the view ofthe custodian, representative ofthe market value, the custodian will attempt to obtain a price quote from a secondary pricing source, which may include third party brokers, investment advisers, principal market makers, or affiliated pricing services. If a secondary source is unable to provide a price, the custodian may obtain a quotation from the counterparty that sold the security.

More specifically, the custodian uses quoted market prices for valuing government obligations, corporate stocks, and foreign equities which are all classified within Level 1 of the fair value hierarchy. The custodian uses quoted market prices, which represent the net asset value per unit, to value mutual and money market funds, which are also classified within Level 1 of the fair value hierarchy. Fixed income securities included in this portfolio, such as government agency mortgage obligations and corporate and foreign obligations are classified within Level 2 of the fair value hierarchy and are valued based on bid-side quotations or evaluated bids based on intemal models used by the custodian's independent pricing service. Other alternative investments are valued at an evaluated price provided by a counterparty or fund manager that may or may not be an affiliate ofthe Portfolio A custodian.

The following table sets forth by level, within the fair value hierarchy, the Agency's pro-rata interest in the portfolio assets at fair value as of June 30,2010:

Level 1 Level 2 Level 3 Total

Cash and money market funds Govemment obligations Govemment agency mortgage obligations Corporation obligations Foreign obligations Corporate stocks - real estate industry Foreign equities - real estate industry Mutual fluids

U.S. large blend Foreign large blend Real estate

Exchange traded fund Siguier Guff Distressed Opportunity Fund III, LP Meridian Diversified Fund, Ltd.

$ 624,508 450,684

---

253,347 340,424

3,513,823 1,459,219 469,178 186,165

--

$7,297,348

$ -

1,041,579 732,735

' 261,142 --

-

-----

$2,035,456

$ ------

-

---

555,868 713,196

$1,269,064

$ 624,508 450,684

1,041,579 732,735 261,142 253,347 340,424

3,513,823 1,459,219 469,178 186,165 555,868 713,196

$10,601,868

- 1 4 -

CATHOLIC CHARITIES ARCHDIOCESE QF NEW ORLEANS AND SUBSIDIARIES

NEW ORLEANS. LOUISUNA


JUNE 30,2010 AND 2009

4. Fair Value of Financial Instruments (continued)

The following table sets forth by level, within the fair value hierarchy, the Agency's pro-rata interest in the portfolio assets at fair value as of June 30,2009:

Level 1 Level 2 Level 3 Total

Cash and money market funds Govemment obligations Govemment agency mortgage obligations Corporation obUgations Foreign obligations Corporate stocks - real estate industry Foreign equities - real estate industry Mutual funds Siguier Guff Distressed Opportunity Fund 111, LP Meridian Diversified Fund, Ltd.

$

A

1,052,302 494,639

---

375,496 552,923

4,815,012 --

7,290,372

$

$

-

-871,106

1,229,077 463,520

-----

2,563,703

$

$

-

-------

310,475 681,843 992,318

$ 1,052,302 494,639 871,106

1,229,077 463,520 375,496 552,923

4,815,012 310,475 681,843

S 10,846,393

5. Endowments

The Board of Agency and Subsidiaries is of the belief that they have a strong fiduciary duty to manage the assets of Agency and Subsidiaries' endowments in the most pmdent manner possible. The Board recognizes the intent ofthe endowment is to protect the donor with respect to expenditures from endowments. If this intent is clearly expressed by the donor, whether the intent is in a written gift instmment or not, the intent of the donor is followed. If not expressed, the Board ensures the assets of the endowment are spent in a pmdent manner which considers the purpose of the fund, current economic conditions, and preservation of the fund. To follow these principles, the historic value ofthe fund is always maintained in permanently restricted net assets.

The Second Harvest endowment requires eamings, including appreciation, that are not required by the donor to be reinvested in corpus, are maintained in unrestricted net assets. As required by generally accepted accounting principles, net assets associated with endowment fiinds are classified and reported based on the existence or absence of donor-imposed restrictions. The Second Harvest endowment requires that five percent ofthe average market value ofthe investment for the last 12 fiscal quarters be distributed annually. All amounts in excess ofthe five percent distribution are to be reinvested as corpus. The amended "Agreement to Donate" also requires that the principal balance should never be reduced below $1,000,000.

- 1 5 -




JUNE 30.2010 AND 2009

5. Endowments (continued)

The Agency's endowment allows an annual income distribution that shall not exceed five percent of the endowment's year-end balance. Distributions are paid only from annual eamings. If an annual income distribution does not occur, eamings are added to principal for growth.

Endowment Investment and Spending Policies. Agency and Subsidiaries have adopted investment and spending policies, approved by the Board, for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of these endowment assets over the long-term. The endowment's assets are invested in the Archdiocese of New Orleans' investment pool, as previously described. Agency and Subsidiaries' spending and investment policies work together to achieve this objective. Spending is approved by the Board, based on the needs of Agency and Subsidiaries.

The table below represents the endowment related activity for the fiscal year ending June 30,2010:

Endowment net assets, beginning of year Net realized and unrealized gains/losses

Endowment net assets, end of year

The table below represents the endowment related activity for the fiscal year ending June 30,2009:

Permanently Unrestricted Restricted Total

Unrestricted

$ 191,391 177,528

$ 368,919

Permanently Restricted Total

$ 1,910,805 $ 2,102,196 141,582 319,110

$ 2,052,387 $ 2,421,306

Endowment net assets, beginning of year $ 308,865 $ 2,265,579 $ 2,574,444 Net realized and unrealized gains/losses (117,474) (354,774) (472,248)

Endowment net assets, end of year $ 191,391 $ 1,910,805 ~$ 2,102,196

- 1 6 -




JUNE 30.2010 AND 2009

6. Property and Equipment

A summary of property and equipment at June 30, 2010 is as follows:

2010 2009

Buildings and improvements Leasehold improvements Equipment Vehicles Constmction in Progress Land

Less accumulated depreciation and amortization

Total property and equipment, net

$

$

23,035,357 6,576,788 6,746,587 4,828,532

932,672 2,853,523

44,973,459

18,912,043 26,061,416

$ 19,739,981 4,375,009 6,484,149 4,222,559 3,277,050 1,346,323

39,445,071

18,991,071 $ 20,454,000

During the year ended June 30, 2009 the children's residential program on the Hope Haven campus was closed. The Agency wrote off property and equipment used by this program resulting in a loss on disposal of $833,666 which is included in the gain (loss) on disposition of property on the consolidated statements of activities.

As described in note 7, in December 2009, Second Harvest entered into an agreement to exchange property. The property assumed by Second Harvest included a warehouse and land along with the related note payable, in exchange for land and building owned by Second Harvest. As a result ofthe exchange, a gain of $530,071 was recognized in the statement of changes in net assets.

- 1 7 -

CATHOLIC CHARITIES ARCHDIOCESE QF NEW ORLEANS AND SUBSIDIARIES



JUNE 30,2010 AND 2009

7. Loans Payable

Loans payable at June 30, 2010 are summarized as follows: 2010 2009

Mortgage notes payable in monthly installments approximating $2,750, including interest at an annually adjustable rate (ranging from 2.909% to 7.86%); final installments due between December 2013 and July 2015; collateralized by real estate with a book value approximating in excess ofthe loan payable at June 30, 2010 and 2009. $ 70,819 $ 103,612

Note payable in monthly installments due in full on January 5, 2011, variable rate secured by land and building. 5,119,385

$ 5,190,204 $ 103,612

On December 30, 2009, the Agency and Subsidiaries entered into an agreement to exchange property. The property assumed by the Agency and Subsidiaries includes a warehouse and land. As part ofthe agreement, the Agency and Subsidiaries assumed a mortgage payable secured by the land and building in the amount of $5,163,947, with a variable rate (rate at June 30, 2010 was 7.625%). The total balance as of June 30, 2010 is considered the current portion as the debt matures on January 5, 2011. As a result ofthe exchange, a gain of $530,071 was recognized in the statement of changes in net assets. Second Harvest anticipates refinancing the note.

Annual principal payments on loans payable for each ofthe next five years and in total thereafter at June 30,2010 are as follows:

Vear Ending June 30,

2011 2012 2013 2014

Amount $ 5,150,636

24,627 9,894 5,047

No interest was capitalized in 2010 or in 2009.

- 1 8 -




JUNE 30,2010 AND 2009

8. Restrictions on Net Assets

Temporarily restricted net assets are restricted by donors for specific programs, purposes, or to assist specific departments ofthe Agency and Subsidiaries. These restrictions are considered to expire when expenditures for restricted purposes are made.

The following sets forth the composition of temporarily restricted net assets at June 30.

2010 2009

Restricted for hurricane relief Restricted for relief services to children Restricted for operations of Shirley

Landry Benson PACE Center Restricted for purchases of capital assets United Way allocation for subsequent fiscal year Other restrictions

Totals

The following temporarily restricted net assets were released during the years ended June 30, due to satisfaction of donor restrictions:

2010 2009

Restricted for hurricane relief Restricted for PACE - Benson PACE Center Restricted for purchases of capital assets United Way allocation for subsequent fiscal year Other restrictions

Totals

Permanently restricted net assets consist of endowment fund assets to be held indefinitely. The composition of permanently restricted net assets at June 30 is as follows:

2010 2009

$

$

7,383,642 1,415,404

697,686 1,912,528 1,203,029 3,668,916

16,281,205

$

$

8,869,124 2,849,427

760,293 1,153,320 1,147,402 4,964,133

19,743,699

$

$

2,765,673 80,389

448,964 1,147,401 3,062,702

7,505,129

$

$

5,125,369 678,840 34,000

1,213,909 2,014,273

9,066,391

Endowment fijnd - Second Harvest $ 1,000,000 $ 1,000,000 Endowment fund-Catholic Charities - Gift of Life 1,052,387 910,805

Totals $ 2,052,387 $ 1,910,805

- 1 9 -




JUNE 30.2010 AND 2009

9. Retirement Plans

The Agency and Subsidiaries offer a 401(k) defined contribution plan to its employees. Employees electing to participate in the plan are required to contribute a minimum of 3% of their salaries, and may elect to contribute up to a 16% maximum. The plan requires the Agency and Subsidiaries to contribute 3.5% of the participants' salaries. The plan expense also includes an additional 2.0% contribution by the Agency and Subsidiaries to cover costs for life insurance and disability insurance for the employees. Any remaining funds from the 2.0%o contribution may be used as a discretionary employer contribution to the plan. The plan administrator is the Archdiocese. The Agency and Subsidiaries contributed approximately $713,000 and $641,000, for the years ended June 30, 2010 and 2009, respectively.

10. Expenses by Program

Details of total expenses by program for the years ended June 30 are as follows:

2010 2009 Adult Day Health Care Community Centers and Services Food For Families Head Start Hope Haven Non-Residential Day Programs PACE Padua Pediatrics and Adult Residential Special Needs Second Harvest

Totals

$ 1,077,583 9,252,722 4,805,595 4,818,291

957,936 6,971,292 7,076,041 4,956,205 5,488,364

37,571,568

$ 1,083,564 9,345,377 4,710,434 4,216,350 2,223,753 7,538,589 5,213,718 4,964,254 5,852,922

35,194,497

$ 82,975,597 $ 80,343,458

11. Related Party Transactions

The controlling member of the Agency, the Archbishop of New Orleans, also serves as president of the Roman Catholic Church ofthe Archdiocese of New Orleans and controlling member of all other corporations, board of trustees and separate activities sponsored by, or operated under the auspices of the Archdiocese of New Orleans. In the normal course of operations, the Archdiocese will make available to the Agency and its affiliated agencies specific assistance in the form of operating subsidies, loans, casualty insurances, etc. The Agency paid the Archdiocese for general liability, property coverage, workmen's compensation, vehicle and other insurance, secured on its behalf of $1,179,000 and $1,074,000 for the years ended June 30, 2010 and 2009, respectively. In addition, the Agency paid the Archdiocese for rent and other operating costs totaling $557,000 and $487,000 for the years ended June 30,2010 and 2009, respectively.

-20-




JUNE 30.2010 AND 2009

11. Related Party Transactions (continued)

One of the Co-Presidents of the Agency serves as the President and Chief Executive Officer, in a voluntary role, of Providence Community Housing. The Agency received funding from Providence Community Housing to support a community center. The amount ofthe funding was approximately $448,000 and $370,000 for the years ended June 30, 2010 and 2009, respectively. During the fiscal year ended June 30, 2009, a program ofthe Agency shared office space with Providence Community Housing. The Agency paid Providence Community Housing $20,444 for the use of office space.

The Agency has a line of credit with the Archdiocese for $5.0 million at 4.2% annual interest. No amounts were outstanding as of June 30, 2010 or 2009. The amount due from the Archdiocese as of June 30,2009 was $429,900, due to hurricane related insurance proceeds received by the Archdiocese in excess of hurricane related repairs paid for by the Archdiocese. This amount was received during the year ended June 30,2010.

12. Leases

The Agency operates a portion of its community social service programs in leased facilities under operating leases expiring at various dates through the fiscal year 2013. The leases are subject to cancellation under certain circumstances, including substantial changes in funding in the Agency's programs. The following is a schedule by year of future minimum rental payments required under those leases and under equipment leases that have initial or remaining lease terms in excess of one year as of June 30, 2010.

Year Ending

June 30, 2011 2012 2013

$

$

Amount 450,822 127,920 22,166

600,908

The rental expense for all operating leases for the year ended June 30, 2010 and 2009 approximated $1,572,000 and $1,283,000, respectively.

- 2 1 -




JUNE 30.2010 AND 2009

13. Significant Contracts and Grants

For the years ended June 30, 2010 and 2009, $16,838,335 and $13,810,317, respectively, of the Agency and Subsidiaries' govemmental financial assistance was from the U.S. Department of Health and Human Services and $17,126,184 and $8,887,541, respectively, ofthe Agency and Subsidiaries' govemmental financial assistance was from the U.S. Department of Agriculture. Management believes that the Agency and Subsidiaries are in compliance with the provisions of these contracts and grants and that the findings of an audit, if any, would not have a material impact on the financial statements.

For the years ended June 30, 2010 and 2009, Second Harvest entered into Cooperative Endeavor Agreements with the Louisiana Department of Agriculture & Forestry of the State of Louisiana for the sum of $500,000 and $5,000,000, respectively. The purpose of the agreements was to purchase 6,000,000 pounds of nutritional food each year from Louisiana farmers, manufacturers, wholesalers and vendors to feed and adequately nourish people throughout the State of Louisiana who are food insecure. The program is titled Louisiana Nutrition Assistance Program (LANIAP). Subcontracts were entered into with Feeding America's certified member Food Banks located in the State of Louisiana (Food Banks) and Second Harvest detailing the amount each food bank was eligible to receive in purchased food products and the reporting requirements each food bank would have to fulfill. The five Food Banks created an association called the Louisiana Food Bank Association, Inc. (LFBA) which was incorporated as a non-profit corporation within the State of Louisiana on May 18, 2007. LFBA designated Second Harvest to serve as its fiscal agent. For the years ended June 30, 2010 and 2009, 1,340,816 and 9,672,945 pounds, respectively, had been purchased for the five Food Banks ofthe Louisiana Food Bank Association through the LANIAP program. Food purchased under the agreement during the years ended June 30 is as follows:

2010 2009

Second Harvest Greater Baton Rouge Food Bank Central Louisiana Food Bank Food Bank of Northwest Louisiana Food Bank of Northeast Louisiana

Totals

Dollars

$ 95,948 96,619 97,518 95,064 97,003

$ 482,152

Pounds

291,650 248,550 247,626 332,472 220,518

1.340,816

$

$

Dollars

2,418,378 768,750 567,500 567,500 527,250

4,849,378

Pounds

4,917,246 1,489,095 1,082,364 1,125,449 1,058,791 9,672,945

The Agency and Subsidiaries are party to various litigations and other claims, the outcome of which cannot be presently determined. Although management intends to vigorously defend against such litigations and claims, $1,367,500 and $3,207,500 at June 30, 2010 and 2009, respectively, has been accmed for all matters. Management's opinion is that the outcome of such matters would not have a significant effect on the Agency and Subsidiaries financial position in excess ofthe amounts accrued.

- 2 2 -




JUNE 30.2010 AND 2009

14. Commitments and Contingencies

The Agency and Subsidiaries are exposed to various risks of loss from torts; theft of, damage to, and destmction of assets; business interruption; errors and omissions; employee injuries and illnesses; natural disasters; and employee health and accident benefits. Commercial insurance coverage is purchased for claims arising from such matters.

In September and October 2009, several litigation claims were settled. The Agency and Subsidiaries' liability for these settlements is $1,852,500. In order to pay the settlements, the Agency made a draw down on the line of credit with the Archdiocese (Note 11) of $1,852,500. The line of credit was repaid in full during the year ended June 30,2010.

15. Concentrations of Credit Risk

As of June 30, 2010 and 2009, program accounts receivable consisted primarily of amounts due from governmental sources.

As of June 30, 2010, the Agency and Subsidiaries had bank accounts at one financial institution which exceeded the $250,000 limit insured by the Federal Deposit Insurance Corporation (FDIC) by approximately $8,029,582.

16. PHILMAT Commodity Food Issued

PHILMAT receives pass-thru funding from the LDHH to administer and distribute commodity foods issued by the Food For Families/Food For Seniors program. Pass-thra funding received by PHILMAT for their administrafion and distribution services totaled $4,134,962 and $3,990,897, for the years ended June 30, 2010 and 2009, respectively. Statistical information related to commodity foods issued by the Food for Families/Food for Seniors program during the years ended June 30, 2010 and 2009 included dollars of $14,519,668 and $13,387,418, respectively, and pounds of 21,986,690 and 19,842,610 respectively.

17. Second Harvest Food and Grocery Products

Second Harvest undistributed food and grocery products at June 30 consist ofthe following:

2010 2009 Dollars $

Donated and purchased U.S.D.A commodities LANIAP purchased product

- 2 3 -

Dollars $ $ 1,714,464

589,336

$ 2,303,800

Pounds 1,073,100

368,335

1,441,435

Dollars $ $ 1,320,930

473,259 168,480

$ 1,962,669

Pounds 910,384 624,228 369,271

1,903,883




JUNE 30.2010 AND 2009

17. Second Harvest Food and Grocery Products (continued)

Second Harvest's receipts and distributions of food and grocery products (cash basis) for the years ended June 30 were as follows:

Totals

2010 Dollars Pounds

2009 Dollars Pounds

Receipts: Donated products Purchased product U.S.D.A. commodhies LANIAP Purchased product

Totals

Distributions, net of adjustments: Donated products Purchased product U.S.D.A. commodities LANIAP Purchased product

$

$

$

18,839,145 296,066

11,608,067 142,984

30,886,262

18,449,548 272,129

11,491,990 311,464

11,774,466 355,392

7,255,042 409,405

19,794,305

11,612,181 354,961

7,510,935 778,676

$

$

$

21,214,366 221,840

3,816,754 2,262,679

27,515,639

21,758,094 215,845

3,416,731 2,311,210

13,426,814 299,738

6,702,993 4,803,163

25,232,708

13,770,994 291,045

6,288,098 4,861,034

$ 30,525,131 20,256,753 $ 27,701,880 25,211,171

18, Board of Directors Compensation

The members ofthe Agency's board of directors were not compensated during the years ended June 30, 2010 and 2009.

19. Hurricane Katrina

On August 29, 2005, New Orleans and the surrounding area suffered a natural disaster. Hurricane Katrina. As a result, several programs of the Agency and its subsidiaries were impacted. The hurricane also delayed the opening ofthe PACE program until September 1,2007. Since the date of the hurricane, the Agency was awarded grants from Catholic Charities USA for humanitarian aid in the amount of $60.7 million of which $54.5 million had been distributed through June 30, 2010. The remaining funds will be released from temporarily restricted net assets as needed.

The most significant physical damage to property owned by the Agency and Subsidiaries was the loss of a food warehouse used by the Food for Families/Food for Seniors program. The Agency and Subsidiaries participate in an insurance program sponsored by the Archdiocese of New Orleans. Since the damage to the warehouse was due to wind damage, the loss was fully covered by insurance. During the fiscal years ended June 30, 2010 and 2009, insurance recoveries received to rebuild the warehouse were approximately $650,000 and $2.1 million, respectively.

-24-

CATHOLIC CHARITIES ARCHDIOCESE QF NEW ORLEANS AND SUBSIDLVRIES



JUNE 30.2010 AND 2009

20. Subsequent Events

Management has evaluated subsequent events through the date that the financial statements were available to be issued, December 15, 2010, and determined that on event required disclosure. On August 31, 2010, the Agency received a cash contribution of $6,746,046 for use in addressing behavioral health needs on the Louisiana Gulf Coast as a result ofthe oil spill from the Deepwater Horizon Oil Rig explosion in April 2010.

- 2 5 -

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AND SUBSIDIARIES

SINGLE AUDIT REPORT

JUNE 30.2010

l U q i M Postlethwaite mSSMM & Netterville

A Professional Accounting Corporation

www.pncpa.com


CATHOLIC CHARITIES ARCHDIOCESE OF INfEW ORLEANS New Orleans, Louisiana

Single Audit Reports

June 30,2010

Table of Contents

Page

Report on Intemal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards I

Report on Compliance with Requirements Applicable to each Major Program and on Intemal Control over Compliance in Accordance with OMB Circular A-133 and the Schedule of Expenditures of Federal Awards 3

Schedule of Expenditures ofFederal Awards 5

Notes to Schedule of Expenditures ofFederal Awards 10

Schedule of Findings and Questioned Costs 11

Summary Schedule of Prior Audit Findings 13

I H a ^ l Postlethwaite E a a l J & Netterville

A Professional Accoutirmg Corporation Associated Offices in Principal Cities of tKe IJnitetJ States

www.pncpa.com

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 STANDARDS


We have audited the basic financial statements of Catholic Charities Archdiocese of New Orieans (the Agency), as of and for the year ended June 30, 2010, and have issued our report thereon dated December 15, 2010. 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 ofthe United States.

Intemal Control Over Financial Reporting

hi planning and performing our audit, we considered the Agency's intemal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness ofthe Agency's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness ofthe Agency's intemal control over financial reporting.

A deficiency in internal control exists when the design or operafion of a control does not allow management or employees, in the nonnal course of performing their assigned fianctions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in intemal control, such that there is a reasonable possibility that a material misstatement ofthe enfity's financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of intemal control over financial reporting was for the limited purpose described in the first paragraph 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 the Agency'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 results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

- I -

30th Floor - Energy Centre • 1100 Poydras Street • New Orleans, LA 70163-3000 • Tel: 504.569.2978 One Galleria Blvd., Suite 2100 • Metairie, LA 70001 • Tel: 504.837.5990 • Fax: 504.834.3609


This report is intended solely for the infonnation of the Agency, the Agency's management, and federal awarding agencies and pass-through entities, such as the State of Louisiana and Legislative Auditor's Office, and is not intended to be and should not be used by anyone other than these specified parties. However, under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.

Metairie, Louisiana December 15,2010

- 2 -

P&N

| i j9 l?E| Postlethwaite E » g a J & Netterville

A Profewional Accounling Cotpotalion Associated Offices In Principal Cities of ttie United States

www.pncpa.com

REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 AND THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Compliance

We have audited the compliance of Catholic Charities Archdiocese of New Orieans (the Agency) with the types of compliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2010. The Agency's major federal program is identified in the summary of auditors' resuhs secfion of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the Agency's management. Our responsibility is to express an opinion on the Agency's compliance based on our audit.

The Agency's basic financial statements include the operations of tiie Second Harvest Food Bank of Greater New Orleans and Acadiana (the Organization) which received $12,796,349 in federal awards which is not included in the schedule of expenditures of federal awards for the year ended June 30, 2010. Our audit, described below, did not include the operations of the Organization as the Organizafion engaged its own auditors to perfonn an audit in accordance with OMB Circular A-133.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements refened to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Agency's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the Agency's compliance with those requirements.

In our opinion, the Agency complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30,2010.

Internal Control Over Compliance

The management ofthe Agency is responsible for establishing and maintaining effective intemal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the Agency's intemal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance,

- 3 -

30th Floor - Energy Centre • 1100 Poydras Street • New Orleans. LA 70163-3000 • Tel: 504.569.2978 One Galleria Blvd., Suite 2100 • Metairie, LA 70001 • Tel: 504.837.5990 • Fax: 504.834.3609


but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Agency's intemal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the nonnal course of performing their assigned fimctions, to prevent, or detect and conect, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in intemal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.

Our consideration of intemal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in intemal control over compliance that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above.

Schedule of Expenditures ofFederal Awards

We have audited the financial statements ofthe Agency, as of and for the year ended June 30, 2010, and have issued our report thereon dated December 15, 2010. Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

This report is intended solely for the infonnation ofthe Agency, the Agency's management, and federal awarding agencies and pass-through entities, such as the State of Louisiana and Legislative Auditor's Office, and is not intended to be and should not be used by anyone other than these specified parties. However, under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.

Metairie, Louisiana December 15,2010

.4_

P&N

CATHOLIC CHARITIES ARCHIOCESE OF NEW ORLEANS NEW ORLEANS. LOUISIANA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

For ifie year ended June 30,2010

Federal Grantor/Pass-Through Grantor/ Program Title/Program Descriplion

Federal

CFDA

Number

Pass-Through

Entity Identifying

Number

Federal

Expenditures

U.S. Department of Agriculture Direct Programs:

Supplemental Nutrition Assistance Program

Total - direct programs

Pass-lhrougli programs from: State of Louisiana Department of Education

Department of Education Division of Nutrition Assistance

School Breakfast Program Child Residential Care

Child and Adult Care Food Program Child Day care Adult Day Health care Emergency Shelter

Total - Child and Adult Care Food Program

Total - Louisiana Department of Education

Department of Health and Hospitals Office of Public Health

Commodity Supplemental Food Program

Total - State of Louisiana

Total - U.S. Department of Agriculture

U.S. Department of Housing and Urban Development Direct Programs:

Supporting Housing Program Transitional Housing

Economic Development Initiative


Pass-through programs from: Catholic Charities USA

Housing Counseling Assistance Program

Louisiana Housing Finance Agency Operation Helping Hands

City of New Orleans Community Development Block Grants

Emergency Shelter Grants Program Emergency Shelter Care

Total - Cily of New Orleans

10.580

10.565

14.235

14.251

14.169

I4.unk

14.231

42-0861/616114

not known S 29,127

29,127

10.553

10.558

10.558

10.558

not known

not known

not known

not known

34,179

326,754

58,066

1,140

385,960

420,139

4,134,962

4,555,101

4,584,228

LA48 8-50-3020

not known

—

not known

not known

96(92yPC750 2 4 8 ) 7 _

SESG018 _

339.903

32,724

372,627

11,557

101,396

562,961

389,164

1,053,521 (Continued)

- 5 -


SCHEDULE OP EXPENDITURES OF FEDERAL AWARDS

For Ihe year ended June 30,2010

Federal Grantor/Pass-Through Grantor/ Program Title/Program Description

Federal

CFDA

Number

Pass-Through

Entity Identifying

Number

Federal

Expenditures

State of Louisiana Louisiana Public Health Institute

Workforce Training

Parish of Jefferson Department of Community Development Programs

Community Development Block Grants Emergency Shelter Care

Emergency Shelter Grants Program Emergency Shelter Care

Total - Parish of Jefferson

Unity Rapid Rehousing Transitional Housing

UNITY for the Homeless, Inc. Supfwrtive Housing Program

Mental Health Transitional Housing Emergency Shelter Care Community Centers

Total - UNITY for the Homeless, Inc.

Total pass-through programs

Total - U.S. Department of Housing and Urban Development

U.S. Department of Justice Direct Programs:

Recovery Act Transitional Housing


Pass-through programs from: Louisiana Commission on Law Enforcement and Administration of Criminal Justice

Crime Victim Assistance Domestic Violence Rape Crisis

Violence Against Women Formula Grants Domestic Violence Domestic Violence Immigration Outreach Sexual Assault Transitional Housing

Pass-through program from: City of New Orleans - Office of Criminal Justice

Domestic Violence Domestic Violence

Total - Louisiana Commission on Law Enforcement and Administration of Criminal Justice

14.228

16.805-ARRA

SESG018

not known

$ 21,760

14.218

14.231

14.228

14.235 14.235 14.235 14.235

not known

not known

not known

not known LA48-B-50-30I9 LA48-B-50-3032 LA48-B-50-3011

100,000

203,647

303,647

540,594

423,908 153.932 52,352

166,056

796,248

2,727,327

3,099.954

106,082

106,082

16.575 16.575

16.588 16,588-ARRA

16.588 16.588-ARRA

16.736

16.588-ARRA 16.575

not known not known

not known not known not known not known not known

not known not known

49,914 119.275

677,743 12,546 38,262

473 68,249

6,676 175,437

1,148,575

(Continued)

- 6 -



For the year ended June 30,2010


Federal CFDA

Number

Pass-Through Entity Identifying

Number Federal

Expenditures

City of New Orleans - Office of Criminal Justice Grants to Encourage Arrest Policies and Enforcement of Protection Orders

Domestic Violence Supervised Visitation

Total - City of New Orleans - Office of Criminal Justice

Total - U.S. Department of Justice

U.S. Department of Labor

Pass-through program from: Jefferson Parish Department of Workforce Connection

WIA Youth Activities

Total - U.S. Department of Labor

U.S. Department of State Pass-through program from:

United States Conference of CalhoJic Bishops Reception and Placement - direct Reception and Placement - administration

Total - U.S. Department of State

U.S. Department of Transportation Pass-through program from:

Louisiana Highway Safety Commission Occupant Protection Incentive Grants

Total - U.S. Department ofTransportation

U.S. Department of Veteran Affairs Pass-through program from:

Pending - Agency Name Pending - Grant Name

Total - U.S. Department of Veteran Affairs

U.S. Department of Education Pass-through program from:

State of Louisiana Department of Social Services

Louisiana Commission for the Deaf Rehabilitation Services - Vocational Rehabilitation Grants

Deaf action Center Department of Social Services

Adult Education - Basic Grants to States Twenty-First Century Community Learning Centers

Total - U.S. Department of Education

16.590 16,527

17.259

19.unk I9.XXX

20.602

64.unk

not known not linown

not known

not known not known

not known

not iuiown

84.126

84.002 84.287

not known

not known not known

15,882 93.395

109.277

1,363,934

45.997

45,997

5.815 6,880

12,695

25.183

25,183

190,906

190,906

71.156

143,894 369.702

584.752 (Continued)

- 7 -

CATHOLIC CHARITIES ARCHIOCESE OF NEW ORLEANS NEW ORLEANS, LOUISIANA


For the year ended June 30, 2010


Federal

CFDA

Number

Pass-Through

Entity Identifying

Number Federal

Expenditures

U.S. Department of Health and Human Services Pass-thro ugh programs from:

State of Louisiana Department of Social Services

Strategies to Empower People (STEP) Program

OfUce of Community Services Refugee and Entrant Assistance - Stale Administered Programs

Refugee Social Services Refugee Social Services (PPP) Refugee Screening - Pending

Total - Refugee and Entrant Assistance

Social Services Block Grant Therapeutic Family Services

Total - Social Services Block Grant

Chaffee Foster Care Independence Program Independent Living - match Independent Living - ETVP

Total - Chaffee Foster Care Independence Program

Total - Louisiana Department of Social Services

Office ofthe Governor/Office of Women's Policy Family Violence Prevention and Services - Grants for Battered Women's Shelters

Total - Office ofthe Governor/Office of Women's Policy

Total - State of Louisiana

Total Community Action, Inc. Head Start Cluster

Head Start Child Day Care Head Start - COLA Head Start - Ql

Total - Total Community Action, Inc.

Primary Care Access & Stabilization Research, Demonstrations, and Evaluations

Total - U.S. Department of Health and Human Services

Corporation for National and Community Service Direct program:

Foster Grandparents Program Foster Grandparents

Pass-through programs from: Louisiana Serve Commission

Americorps

Total - Corporation for National and Community Service

93.558

94.011

94.006

045FWLA001

06.AC068537

3.911

93.566 93.566 93.576

93.667

93.674 93.674

93.671

93.600 93.708-ARRA 93.708-ARRA

93.779

not known not known not known

not known

606911 607033

C05-9-014

06CH0473 not known not known

not known

18,473 136.986

18.908

174.367

572.227

572,227

364,085 164.041

528.126

1.278.631

324.735

324,735

1,603.366

3,566,973 77.442

135.659

3,780,074

68.227

5.451.667

340,714

62,272

402,986 (Continued)

CATHOLIC CHARITIES ARCHIOCESE OF NEW ORLEANS NEW ORLEANS. LOUISTANA


For the year ended June 30,2010


U.S. Department of Homeland Security Pass-through programs from:

United Way of Greater New Orleans Emergency Food and Shelter National Board Program

United Way of Greater New Orleans Disaster Case Management Program

Total - U.S. Department of Homeland Security

Total Expenditures ofFederal Awards included in this report

See accompanying notes to schedule of expenditures of federal awards.

Federal CFDA

Number

Pass-Through Entity Identifying

Number Federal

Expenditures

97.024

97.088

not known

not known

52,157

461,853

514,010

$ 16.276.312

- 9 -

CATHOLIC CHARITIES ARCHDIOCESE OF NEW ORLEANS New Orleans, Louisiana

Notesto Schedule of Expenditures ofFederal Awards

June 30, 2010

(1) General

The accompanying Schedule of Expenditures of Federal Awards presents the activity of the federal awards of Catholic Charities Archdiocese of New Orleans, PHILMAT, Inc., and PACE Greater New Orleans. The Agency's reporting entity is defined in note I to the fmancial statements for the year ended June 30, 2010. All federal awards received from federal agencies are included on the schedule.

(2) Basis of Presentation

The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in note 1 to the Agency's financial statements for the year ended June 30,2010.

The financial statements of Second Harvest Food Bank of Greater New Orleans and Acadiana (Second Harvest), a subsidiary ofthe Agency, are audited separately. A separate Circular A-J 33 report on Second Harvest's federal awards was issued for the year ended June 30,2010.

(3) Relationship to Financial Statements

Federal awards are included in the basic financial statements ofthe Agency as follows:

Schedule ofFederal Awards $ 16,276,312

State funds 2,787,001 Office of Health and Hospitals - Medicaid and Medicare 11,386,668 Second Harvest federal awards 12,796,349

Total govemmental financial assistance $ 43,246,330

- 1 0 -


Schedule ofFindings and Questioned Costs

Year ended June 30,2010

(1) Summarv of Auditors' Results

Financial Statements

Type of auditor's report issued: unqualified

hitemal control over financial reporting:

• Material weakness(es) identified? no • Significant deficiency(ies) identified that are not considered

to be material weaknesses? none reported

Noncompliance material to financial statements noted: no

Federal Awards

Intemal control over major programs:

• Material weakness(es) identified? no • Significant deficiency(ies) identified that are not considered

to be material weaknesses? none reported

Type of auditor's report issued on compliance for major programs: unqualified

Any audit findings which are required to be reported in accordance with section 510(a) ofOMB Circular A-133? no

Identification of major programs:

U.S. Department of Agriculture Commodity Supplemental Food Program

U.S. Department of Housing and Urban Development Emergency Shelter Grants Program

U.S. Department of Justice Violence Against Women Formula Grants ARRA - Recovery Act Transitional Housing

U.S. Department of Health and Human Services Head Start Cluster

Head Start 93.600 ARRA - Head Start 93.708

10.565

14.231

16.588 16.805

- l l -


Schedule ofFindings and Questioned Costs

Year ended June 30,2010

(1) Summarv of Auditors' Results Ccontinued)

Dollar threshold used to distinguish between Type A and

Type B programs: $488.289

Auditee qualified as a iow-risk auditee? yes

(2) Findings relating to the financial statements reported in accordance with Government Auditing Standards: none

(3) Findings and questioned costs relating to federal awards: none

-12-


Summary Schedule of Prior Audit Findings

Year ended June 30, 2010

There were no audit findings in the prior year.

- 13 -

Documents

Catholic Charities Archdiocese of New Orleansapp1.lla.state.la.us/PublicReports.nsf/E803105127AEA...Assoctoied OfFicei in Principal Cilies of the United StoJes WWW. pncpo. com Report