RECEIVED xn^i.^ivr AUDITOR Q6JAN2U HHIO-53app1.lla.state.la.us/PublicReports.nsf/3B409B28DE... · Q6JAN2U HHIO-53 MENTAL HEALTH SOLUTIONS, INC. D/B/A HEALTH ACCESS/ NORTHWEST LOUISIANA

RECEIVEDxnî.îvr AUDITOR

Q6JAN2U HHIO-53

MENTAL HEALTH SOLUTIONS, INC.D/B/A HEALTH ACCESS/

NORTHWEST LOUISIANA FAMILY CRISIS CENTERFINANCIAL STATEMENTS

JUNE 30, 2005

Under provisions of stata law, this report is a publicdocument. Acopy of the report has b©§n 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 ^ ~-/' ,^00 ^P

Table of Contents

PageIndependent Auditor's Report 2

Statement of Financial Position -June 30, 2005 3

Statement of Activities -Year Ended June 30, 2005 4-5

Statement of Functional Expenses -Year Ended June 30, 2005 6

Statement of Cash Flows -Year Ended June 30, 2005 7

Notes to Financial Statements 8-13

Report on'Internal Control Over Financial Reportingand on Compliance and Other Matters Based on anAudit of Financial Statements Performed inAccordance with Government Auditing Standards 14

Reports on compliance with Requirements Applicableto Each Major Program and Internal Control OverCompliance in Accordance with OMB Circular A-133 15-16

Schedule of Federal Financial Assistance -Supplementary Information for Year Ended June 30, 2005 17

Supplementary Information - Board of Directors - June 30, 2005 18

Schedule of Findings and Questioned CostFor the Year Ended June 30, 2005 19

Management's Corrective Action PlanFor the Year Ended June 30, 2005 20

HEARDMCELROY<& VESTAL

LLPCERTIFIED PUBLIC ACCOUNTANTS

333 TEXAS STREET

15TH FLOOR

SHREVEPORT, LA 71101

318 429-1525318 429-2070 FAX

POST OFFICE Box 1607

SHREVEPORT, LA

71165-1607

PARTNERSJ PETER GAFFNEY, CPA, APCSPENCER BERNARD, JR., CPAH.Q. GAHAGAN, JR., CPA, APCGERALD W. HEDGCOCK, JR . , CPA, APCTIM B. NIELSEN, CPA, APCJOHN W. DEAN, CPA, APCMARK D. ELDREDGE, CPAROBERT L. DEAN, CPASTEPHEN W. CRAIG, CPA

ROY E. PRESTWOOD, CPAA. D. JOHNSON, JR. , CPARON W. STEWART, CPA, APC

OF COUNSELGILBERT R. SHANLEY, J R . , CPAC. CODY WHITE, JR. , CPA, APCWILLIAM L. HIGHTOWER, CPA

December 20,2005

Board of DirectorsMental Health Solutions, Inc.dba Health AccessShreveport, Louisiana

Independent Auditor's Report

We have audited the accompanying statement of financial position of the Mental Health Solutions, Inc. dbaHealth Access as of June 30, 2005, and the related statements of activities, functional expenses, and cashflows for the year then ended. These financial statements are the responsibility of the Board's management.Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statement presentation. Webelieve that our audit provides a reasonable basis for our opinion.

hi our opinion, the financial statements referred to above present fairly, in all material respects, the financialposition of the Mental Health Solutions, Inc. dba Health Access as of June 30,2005, and the changes in itsnet assets and cash flows for the year then ended, in conformity with accounting principles generallyaccepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated December 20,2005on our consideration of Mental Health Solutions, Inc. dba Health Access' internal control over financialreporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grantagreements and other matters. The purpose of that report is to describe the scope of our testing of internalcontrol over financial reporting and compliance and the results of that testing, and not to provide an opinionon the internal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be considered in assessing theresults of our audit.

HVIVA PROFESSIONAL SERVICES FIRM

CY.r.irTcn^.n-r • RrieciEO /~1TV E-MAIL

MENTAL HEALTH SOLUTIONS, INC.D/B/A HEALTH ACCESS/NORTHWEST LOUISIANA FAMILY CRISIS CENTER

STATEMENT OF FINANCIAL POSITIONJUNE 30, 2005

ASSETSCurrent AssetsAccounts Receivable - Grants $ 20,076Advance - Employee 18,506

Total Current Assets 38,582

Fixed Assets and Capitalized LeasesOffice Equipment 23,471Computer Equipment 17,353Professional Material (Books) 40,000Less Accumulated Depreciation and Amortization ( 30,821)

Net Depreciable Fixed Assets and Capitalized Leases 50, Q_Q3

Total Fixed Assets 0

Total Assets

LIABILITIES AND NET ASSETSCurrent LiabilitiesCash Deficit $ 7,889Accounts Payable and Taxes 14,375Payroll and Payroll Taxes Payable 132,882Notes Payable - Related Party 65,575

Total Current Liabilities 220,721

Total Liabilities 220,721

Net Assets (Deficit)Unrestricted Net Assets (Deficit) (132,136)Temporarily Restricted Net Assets 0Permanently Restricted Net Assets Q.

Total Net Assets (Deficit) (132,136}

Total Liabilities and Net Assets 5 88,585

The accompanying notes are an integral part of these financial statements.-3-


STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2005

Changes in Unrestricted Net AssetsPublic SupportUnited Way $ 13,161

Total Public Support 13,161

RevenueIndependent Living 82,400Family Preservation 678,230Write Off of Liabilities 0Other . 298

Total Revenue 760,928

Total Public Support and Revenue 774,089



STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2005

ExpensesProgram Services

Family Preservation $ 675,031Independent Living 28,641

Total Program Services 703,672

Supporting ServicesManagement and General 91, 8_60

Total Expenses • 195,535

Increase (Decrease) in Unrestricted Net Assets

Increase (Decrease) in Net Assets

Net Assets (Deficit) at Beginning of Year

Net Assets (Deficit) at End of Year


MENTAL HEALTH SOLUTIONS, INC.

D/B/A HEALTH ACCESS/NORTHWEST LOUISIANA FAMILY CRISIS CENTERSTATEMENT OF FUNCTIONAL EXPENSES

YEAR ENDED JUNE 30, 2005

SalariesPayroll Taxes andFringe Benefits

Total Salaries andPayroll Taxes andFringe Benefits

Professional FeesSuppliesTelephoneOccupancyInterestRental and Repairs/

EquipmentTravelLicensesPostage and PrintingUtilitiesInsuranceDepreciationBank ChargesTrainingOther

Total Expenses

Allocation of Managementand General

Total FunctionalExpenses

FamilyPreservation

$ 409,299

64.450

473,749

35,49318,06013,93314,896

0

14,92256,821

000

26,2460

14,8470

6.064

675,031

1.121

IndependentLiving

$ 18,264

2.876

21.140

08066226650

6662,535

000

1,5440

66300

28.641

3.739

TotalProgramServices

$ 427,563

67,326

494,889

35,49318,86614,55515,561

0

15,58859,356

000

27,7900

15,5100

6.064

703.672

91,860

Managementand

General

$ 31,210

4,914

36.124

4,7051,3771,0621,13625,588

1,1384,333

155. 468

02,6408,5681,1322,2141,220

$ 91,860

Total.Expenses

$ 458,773

72.240

531.013

40,19820,24315,61716,69725,588

16,72663,689

155468

030,430

8,56816,642

2,2147,284

795^532

$ 795,532

The accompanying notes are an integral part of these financial statements. -6-


STATEMENT OF CASH FLOWSYEAR ENDED JUNE 30, 2005

Cash Flows from Operating Activities

Changes in Net Assets 5 ( 21, 4_43_)

Adjustments to Reconcile Change in Net Assetsto Net Cash Provided by Operating Activities

Depreciation and Amortization _8 , 5 6_8_

Total Adjustments 8,568

Changes in Operating Assets and LiabilitiesDecrease in Accounts Receivable - Grants 5,769Advance to Employee ( 18,506)Decrease in Cash Deficit 3,090Decrease in Accounts Payable and Taxes ( 177)Increase in Payroll and Payroll Taxes Payable 52,616

Net Changes in Operating Assets and Liabilities 42,792

Cash Flows Used for Investing ActivitiesPurchase of Equipment " ( 51,129)

Net Cash Used by Investing Activities ( 51,1.29.)

Cash Flows from Financing ActivitiesBorrowing Debt - Related Party 207,901Repayment of Debt - Related Party (186.689)

Net Cash Provided (Used) By Financing Activities 21,212.

Net Increase (Decrease) in Cash and Cash Equivalents 0

Cash and Cash Equivalents at Beginning of Year P_

Cash and Cash Equivalents at End of Year

Note: During the year, the Company paid $25,588 in interest and $0 for income taxes



NOTES TO FINANCIAL STATEMENTSJUNE 30, 2005

1. Summary of Significant Accounting Policies

Description of_._Organizatioii

Health Access, Inc. d/b/a Northwest Louisiana Family Crisis Center was organizedas a nonprofit corporation without capital stock under the laws of the State ofLouisiana as defined in Louisiana R.S. 12:201(7). The Organization was formed forthe purpose of operating a facility for the comprehensive treatment of child abuseand neglect, and other nonprofit activities. The activities are limited to thosethat are permissible for tax-exempt corporations under Internal Revenue CodeSection 501 (c)(3). On June 5, 1995, the organization changed its corporate namefrom Northwest Louisiana Family Crisis Center, Inc. to Health Access, Inc. d/b/aNorthwest Louisiana Family Crisis Center, by an Amendment to the Articles ofIncorporation which was recorded by the State of Louisiana on June 23, 1995.During the year, the Company changed its name to Mental Health Solutions, Inc.(MHS).

Basis,of Accounting

The accompanying financial statements of Mental Health Solutions, Inc. d/b/aNorthwest Louisiana Health Access/Family Crisis Center have been prepared on theaccrual basis of accounting. All resources for various purposes are currentunrestricted funds available for operations. Therefore, the organization has notemporarily restricted net assets or permanently restricted net assets.

Description of Programs

Family Preservation - Provides an intensive outpatient -counseling program designedto prevent out-of-home placement of an individual. Services are provided in thehome, school, or work place.

Outpatient Counseling - Counseling is provided by Mental Health Solutions, Inc.d/b/a Health Access/Northwest Louisiana Family Crisis Center's staff and contractcounselors for parents, children, couples and entire families. Fees are generatedfrom assistance provided by government agencies or by direct payments from thecounseled individuals.

Independent Living - Provides a series of classes that are intended to teachfoster care youth the skills they will need when they enter an independent livingsituation. The purpose of the classes is to allow individualization of theprogram to fit each participant's developmental and educational needs. Theprogram requires 25% matching.

Case Management - Provides a community-based service system which addresses theneeds of persons with mental illness, mental retardation and other developmentaldisabilities, and/or alcohol and drug abuse problems to live, work and participatein the community.



1. Summary of Significant Accounting Policies (Continued)

LCLE - Provides psycho-social skill training for identified children to assistthem in interpersonal relationships and building self-esteem.

Independent Living Mentor Program •- Program to provide steady encouragement andreliable support from a positive role model to foster care youth and youth in theYoung Adult Program as they learn life skills and use those life skills totransition into independent living. The program is funded by the TemporaryAssistance to Needy Families (TANF). The program requires 25% matching.

Cash and Cash_Eguivalents

For purposes of the statement of cash flows, the Organization considers allunrestricted highly liquid investments with an initial maturity of three (3)months or less to be cash equivalents.

P_ublic Support and Revenue

Mental Health Solutions, Inc. d/b/a Health Access/Northwest Louisiana FamilyCrisis Center receives its grants and contracts support primarily from the StateDepartment of Human Services and other state Agencies. Support received fromthose grants and contracts is recognized on a "net funded" basis whereby StateDepartment of Human Services, Division of Mental Health Services funding isrecognized on a last-dollar-in basis. Related expenses incurred are "netted"first by client fees, Medicaid income, and Medicare income in determining grantfunds to be recognized. Health Access, Inc. d/b/a Northwest Louisiana FamilyCrisis Center receives client fees, Medicaid income, and Medicare income forbillable client services and recognized these fees and income when earned.

Contributions,

All contributions are considered to be available for unrestricted use unlessspecifically restricted by the donor. Amounts received that are designated forfuture periods or restricted by the donor for specific purposes are reported astemporarily restricted or permanently restricted support that increases those netasset classes. When a temporary restriction expires, temporarily restricted netassets are reclassified to unrestricted net assets and reported in the statementof activities as net assets released from restrictions.

Fixed As_sets_

Mental Health Solutions, Inc. d/b/a Health Access/Northwest Louisiana FamilyCrisis Center records assets at cost and follows the practice of capitalizing allexpenditures for land, buildings and equipment in excess of $500. Depreciation ofbuildings and equipment is provided on a straight-line basis and double decliningbalance method over the estimated useful lives of the assets (4-5 percent per yearfor building and improvements, and 14-20 percent for other equipment).



1. Summary of Significant Accounting Policies (Continued)

Receivables and Allowances for. Uncollectible Accounts

Receivables consist primarily of cost reimbursement requests outstanding at year-end related to various contracts from governmental and private agencies. Noallowance for uncollectibles is considered necessary.

Allocation of_Supporting Service Expenditures

The Organization's policy is to allocate indirect expenses of administrativeoverhead (supporting services) to programs based on various direct costs relatedto each program.

Use of Estimates

The preparation of financial statements in conformity with generally acceptedaccounting principles requires management to make estimates and assumptions thataffect certain reported amounts and disclosures. Accordingly, actual resultscould differ from those estimates.

Income Taxes,

The Corporation has been granted tax exempt status as provided by Section501 (c) (3) of the Internal Revenue Code. In addition, the Company has beenclassified as an organisation described in Section 170(b) (2) (A) (vi) .

Advertising

Nondirect response advertising cost are expensed as incurred. During the year,the total advertising cost was less than $1,000,

Sick Pay, Vacation Pay, Retirement Benefits

The Corporation has no retirement plans nor does it compensate its employees forunused sick or vacation time.

Impajurmerit

The carrying value of property, equipment and intangibles is evaluatedperiodically in relation to the operating performance and future undiscounted cashflows of the underlying businesses. Adjustments are made if the sum of expectedfuture cash flows is less than book value. For this year presented, no adjustmentwas necessary.

2. Accounts Receivable

Accounts receivable consists of the following:

Outpatient Counseling $ 16,333Independent Living 3,743

-10-



3. Operating Leases

As of June 30, 2005, the Organization was obligated under cancelable operatingleases for office space. The leases have a 30 day out clause. Rent expense underoperating leases totaled $1,650/month and the building lease expired 12/03.

4. Statement of Cash Flows

Total interest paid for the year was $25,588, none of which was capitalized andall was paid to related employees or family members of employees.

5. Subsequent Events/Contingent Liabilities/Legal Matters

Legal Ma:tters

This Organization is the defendant in various lawsuits arising principally innormal course of operations. In the opinion of management, the outcome of theselawsuits will not have a material adverse effect on the accompanying financialstatements and accordingly, no provision for losses has been recorded.

6. Contribut ions

Total contributions include $0 of in-kind contributions for various fund-raisingactivities.

7. Economic Dependency

The Organization receives the majority of its revenue from Medicaid, Medicare, andstate revenues which include federal pass-through monies.

If significant budget cuts are made at the federal and/or state level, the amountof the funds of the Organization could be reduced significantly and have anadverse impact on its operations. Management is not aware of any actions thatwill adversely affect the amount of funds the Organization will receive in thenext fiscal year.

8. Contingencies

The Company has accrued $16,000 for anticipated settlement charges regarding alawsuit by a previous employee.

9. Related Party

The Company borrowed $207,901 from the employee and employee family members duringthe year. These monies were interest bearing at a rate from 12-18% resulting in abalance due @ year end of $65,575.

-11-



10. Depreciation Expense and Equipment

Life

5-7 yrs. Office Equipment5-7 yrs. Computer Equipment7 yrs. Professional Material (Books)

Less Accumulated DepreciationEC Amortization

Balance

6/30/04

$ 21,8,

29,

( 22^

S 7,

427

2680

695

253)

442

Chanqe

$ 2,9,

40,51,

( 8,

S 42,

044085000129

568)

561

Balance

6/30/05

$ 23,17,40,80,

( 30,

$ 50,

471353000824

821)

003

11. Insurance

The Company maintains the following

Carrier

United NationalSafecoClarendonUnited National

Limits

$3, 000, 000$1, 000,000

$1, 000, 000

PolicyPeriod

8/01/04-7/31/058/01/04-7/31/05

8/01/04-7/31/05

PolicyNumber

GA740156GA740156

GA740156

General LiabilityAutoLA Workers Cbmp.Prof. Liability

12. Going Concern

The Company experienced cash flow shortage in the year ended 6/30/05 and failed topay some payroll taxes. The following summarizes the liability.

The Company has geared its workforce toward operating two of its programs, ILP andOutpatient Counseling. Management is of the opinion the net revenues from thesetwo programs should provide adequate resources for debt repayment.

The CEO has met with the federal government and has settled that issue and iscurrently meeting with the state agencies to devise a payment plan. Failure toincrease cash flows or devise a payment plan could prove to be threatening to theagency's ability to continue.

The increase in the prior year is due to penalties.

Payroll and Payroll Taxes PayableCurrentPast due Louisiana Dept. of LaborPast due Payroll

$ 2,422110,92619,534

-12-



13. Board of Directors

No fees were paid during the year to members of the board.

14. Fair Value of Financial Instruments

The fair value of financial instruments approximates the carrying (book) valuebecause of the short maturity of these assets.

15. Write Off Of Liabilities

Certain liabilities were decreased by management and based upon agreement withcertain regulatory bodies not payable and were written off in the current year,All were recorded as payables in the prior year.

Contingent Liability Sullivan $16,000Salaries Payable (CEO Spouse) 37,231Internal Revenue Services 22,900Other 3,303

$79,434

HEARDMCELROY

VESTALLLP

CERTIFIED PUBLIC ACCOUNTANTS

333 TEXAS STREET

15TH FLOOR


318 429-1525318 429-2070 FAX

POST OFFICE Box 1607

SHREVEPORT, LA

71165-1607

PARTNERSJ. PETER GAFFNEY, CPA, APCSPENCER BERNARD, JR., CPAH.Q. GAHAGAN, JR., CPA, APCGERALD W. HEDGCOCK, JR . , CPA, APCTIM B. NIELSEN, CPA, APCJOHN W. DEAN, CPA, APCMARK D. ELDREDGE, CPAROBERT L. DEAN, CPASTEPHEN W. CRAIG, CPA

ROY E. PRESTWOOD, CPAA, D. JOHNSON, JR. , CPARON W. STEWART, CPA, APC

OF COUNSELGILBERT R. SHANLEY, JR. , CPAC. CODY WHITE, JR., CPA, APCWILLIAM L. HIGHTOWER, CPA

December 20, 2005

Board of DirectorsMental Health Solutions, Inc.dba Health AccessShreveport, Louisiana

Report on Compliance and on Internal Control Over Financial ReportingBased on an Audit of Financial Statements Performed in

Accordance with Government Auditing Standards

We have audited the financial statements of Mental Health Solutions, Inc. dba Health Access as of and forthe year ended June 30,2005, and have issued our report thereon dated December 20,2005. We conductedour audit in accordance with auditing standards generally accepted hi the United States of America and thestandards applicable to financial audits contained in Government Auditing Standards, issued by theComptroller General of the United States.

Internal Control Over Financial ReportingIn planning and performing out audit, we considered Mental Health Solutions, Inc. dba Health Access'internal control over financial reporting in order to determine our auditing procedures for the purpose ofexpressing our opinion on the financial statements and not to provide an opinion on the internal control overfinancial reporting. Our consideration of the internal control over financial reporting would not necessarilydisclose all matters in the internal control that might be material weaknesses. A material weakness is areportable condition in which the design or operation of one or more of the internal control components doesnot reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that wouldbe material in relation to the financial statements being audited may occur and not be detected within a timelyperiod by employees in the normal course of performing their assigned functions. We noted no mattersinvolving the internal control over financial reporting and its operation that we consider to be materialweaknesses.

Compliance and Other MattersAs part of obtaining reasonable assurance about whether the financial statements of the Mental HealthSolutions, Inc. dba Health Access are free of material mis statement, we performed tests of its compliancewith certain provisions of laws, regulations, contracts and grant agreements, noncompliance with whichcould 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 othermatters that are required to be reported under Government Auditing Standards.

This report is intended for the information and use of the board of directors, management, federal awardingagencies, and others within the organization, and is not intended to be and should not be used by anyoneother than these specified parties. However, this report is a matter of public record and its distribution is notlimited.

mm F.-MAH.A PROFESSIONAL SERVICES FIRM

r , „.„„„„ .T3^,prTTin rvrv

HEARDMCELROY

VESTALLLP

CERTIFIED PUBLIC ACCOUNTANTS

333 TEXAS STREET

15TH FLOOR


318429-1525318 429-2070 FAXPOST OFFICE Box 1607

SHREVEPORT, LA

71165-1607

PARTNERSJ. PETER GAFFNEY, CPA, APCSPENCER BERNARD, JR., CPAH.Q. GAHAGAN.JR., CPA, APCGERALD W. HEDGCOCK, JR., CPA, APCTIM B. NIELSEN, CPA, APCJOHN W. DEAN, CPA, APCMARK D. ELDREDGE, CPAROBERT L. DEAN, CPASTEPHEN W. CRAIG, CPA

ROY E. PRESTWQOD, CPAA. D. JOHNSON, JR., CPARON W. STEWART, CPA, APC

OF COUNSELGILBERT R. SHANLEY, JR . , CPAC. CODY WHITE, JR., CPA, APCWILL5AM L. HlGHTO-WER, CPA

December 20, 2005

Board of DirectorsMental Health Solutions, Inc. dba Health AccessShreveport, Louisiana

Report on Compliance with Requirements Applicable to EachMajor Program and Internal Control Over Compliance in

Accordance with OMB Circular A-133

ComplianceWe have audited the compliance of Mental Health Solutions, Inc. dba Health Access with the types ofcompliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A-133Compliance Supplement that are applicable to each of its maj or federal programs for the year ended June 30,2005. Mental Health Solutions, Inc. dba Health Access1 major federal programs are identified in thesummary of auditor's results section of the accompanying schedule of findings and questioned costs.Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its majorfederal programs is the responsibility of Mental Health Solutions, Inc. dba Health Access1 management. Ourresponsibility is to express an opinion on Mental Health Solutions, Inc. dba Health Access1 compliance basedon our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in theUnited States of America; the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance withthe types of compliance requirements referred to above that could have a direct and material effect on a majorfederal program occurred. An audit includes examining, on a test basis, evidence about Mental HealthSolutions, Inc. dba Health Access' compliance with those requirements and performing such other proceduresas we considered necessary in the circumstances. We believe that our audit provides a reasonable basis forour opinion. Our audit does not provide a legal determination on Mental Health Solutions, Inc. dba HealthAccess' compliance with those requirements.

In our opinion, Mental Health Solutions, Inc. dba Health Access complied, in all material respects, with therequirements referred to above that are applicable to each of its major federal programs for the year endedJune 30,2005.

A PROFESSIONAL SERVICES FIRMSHREVEPORT • BOSSIER CITY

WFST MONROEhmv@hmvcpa,com E-MAIL•www.hmvcpa.com WEB ADDRESS

Internal Control Over ComplianceThe management of Mental Health Solutions, Inc. dba Health Access is responsible for establishing andmaintaining effective internal control over compliance with requirements of laws, regulations, contracts andgrants applicable to federal programs. In planning and performing our audit, we considered Mental HealthSolutions, Inc. dba Health Access' internal control over compliance with requirements that could have adirect and material effect on a major federal program in order to determine our auditing procedures for thepurpose of expressing our opinion on compliance and to test and report on internal control over compliancein accordance with OMB Circular A-133.

Our consideration of the internal control over compliance would not necessarily disclose all matters in theinternal control that might be material weaknesses. A material weakness is a condition in which the designor operation of one or more of the internal control components does not reduce to a relatively low level therisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that wouldbe material in relation to a major federal program being audited may occur and not be detected within atimely period by employees in the normal course of performing their assigned functions. We noted nomatters involving the internal control over compliance and its operation that we consider to be materialweaknesses.

This report is intended solely for the information and use of the board of directors, management, federalawarding agencies and pass-through entities, and others within the organization and is not intended to be andshould not be used by anyone other than these specified parties.

o3H

SO

LU

TIO

NS ,

ME

NT

AL

H

EA

LT

H

Y

CR

ISIS

C

EN

TE

R

jH

fa

LO

UIS

IAN

AC

ES

S/N

OR

TH

WE

ST

Urtj

WH

mp

TA

NC

E

COMOJCO

FIN

AN

CIA

LU

LE

O

F

FE

DE

RA

L

PHWCJCO

Oi— i

ttr

INFO

RMAT

:S

UP

PL

EM

EN

T A

T

inoo

o

QH

W

H

Ofa

ffl l/l<U OJ-l ,3 o4J ro-r-{ ~~~~.

Tl *-DtfCD Pi:

& faw

01 T!C 11

-H M£ -Hu p4-> D(I) 4J£ Pi

O (MCO U")n rH

ÔJ (ro u>r .

<n-

m oiu !S>^

CD in0 OQ

o4J nC ^>0 VD0e @r

LOO

(U ^0 0C n<D ^

0)Pi H

fa

rfQfa

4JUft

4JPOu

4->Unj —vi P!4J OP -HO 4-10 O

•H

0 UM

M <De pIDH

fiJ-) OU -Hrt oJVI D4J -HP SH0 0CJ w

0Q

n n^ nr- rn

-.ro U;

rH

VI-

o oO fl^ (>J..

CM COco r-

VD

•u>

in Hin rg

CM rocr\ CT^

O <CO ~-^CN &

r-TM1

CMV>

*£>•H inhJ 0

••--».4J 0pj n .(D ^^v. 'CJ

*H ^ ~:j0) ^ UPL, 0 -H<D " . 73

T3 tH (1)C3 ^ EH O —

> JJ Ol4-1 H C3 fiO <U ID -H

CO -H r-HID 4J 0)u • oj in-H g a c

4-1 E 4-J J4-1 O p Oo u o u

V( 010 E•n nj

IS &0

O ft

fd nJfi tirt in rd

•H E -H£0 ffl W

-H M -H

O 00

ft1-1 U-l0 VH 0

Oflj -r- (D-P to 4-)nJ S rt4J 4-JCVJ M

OJmin.

inO"\r-

•U5

Tf(D

•H0)U

U3 0)r- ô

wo 'tiCN «

PM-)

•WJ r-jftf

O J^ro j™IJ3 ^J

i io Îj3

^ U(D

-H•dO

£CDS

0)ViOJ

4-1

t)fi

OJJs

ort

QJ

4J

£o

M-t

..,01

0r-l

AJ

tn

cOa(U

cu

in<u

tituPQJ

^ ^(0JJ Ho n

"tD4J0*3


SUPPLEMENTARY INFORMATIONBOARD OF DIRECTORS

JUNE 30, 2005

TERM EXPIRES

John Gianforte, President/CEO N/A432 OckleyShreveport, LA 71105Phone (318} 631-1122 Ext. 19j [email protected]

Dr. Paris, Member January 1, 20084406 Curtis LoopBossier City, LA 71112Phone (318) 746-4646

Sandra Todaro, Chairwoman January 1, 2008823 Robinson PlaceShreveport, LA 71104Phone (318) 425-3851stpdaroOb'pcc. eduitodarp®dldvkes,org

Mr. Charlie Hennigan, Member January 1, 20083875 Line AvenueShreveport, LA 71106Phone (318) 868-7128

Representative Earnest Baylor January 1, 20082835 HollywoodShreveport, LA 71108

Dan Wimberly January 1, 2007Urban Housing of AmericaP. 0. Box 3401Shreveport, LA

-18-


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

We were engaged to audit the financial statements of Mental Health Solutions, Inc.d/b/a Health Access/Northwest Louisiana Family Crisis Center as of and for the yearended June 30, 2005 and have issued our report thereon dated December 20, 2005. Weconducted our audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States.Our report expresses an unqualified opinion on the financial statements for the yearended June 30, 2005.

Section I - Summary of Audit or _!_s Results:

a. The report on internal control and compliance material to the financialstatements reported the following items:

- Internal Control - There were no reportable conditions

- Compliance - No noncompliance that is material to the financialstatements

b. Federal Awards:

- Medicaid - Grants totaling $678,230

- Independent Living - Grants totaling $82,400

c. Identification of Major Programs:

- Medicaid - Total revenues received during the year ended 6/30/05 were asfollows:

6/30/05

Section II - Findings, Relating _to the 'Financial Statements Which are_Requ_ired to bReported in Accordance with Generally Acce-pted_Goye_rnme_nta_l__Auditinq Standards,:

- None

Section III - Findings and Questioned Costs for__F_ederal Awards Which_Shall_ IncludeAudit Findings as Defined by OMB Circular A-133:

- None

-19-


MANAGEMENT'S CORRECTIVE ACTION PLANFOR THE YEAR ENDED JUNE 30, 2005

SECTION IINTERNAL CONTROL AND COMPLIANCE MATERIAL TO THE FINANCIAL STATEMENTS

No findings were reported in theschedule of findings and questionedcost.

Response - N/A

SECTION IIINTERNAL CONTROL AND COMPLIANCE MATERIAL TO FEDERAL AWARDS


Response - N/A

SECTION III.MANAGEMENT LETTER


Response - N/A

-20-

Documents

RECEIVED xn^i.^ivr AUDITOR Q6JAN2U HHIO-53app1.lla.state.la.us/PublicReports.nsf/3B409B28DE... · Q6JAN2U HHIO-53 MENTAL HEALTH SOLUTIONS, INC. D/B/A HEALTH ACCESS/ NORTHWEST LOUISIANA