DEEMER BRENDEL \XE DEEMER,CPA

CPA & CONSlIl-,TlNG l)renclclclcemer@ aol.com SERVICES, LLC

ST. JOHN #5 BAPTIST CHURCH, INC.

Accountant's Compilation Report and Selected Information Substantially All Disclosures Required by Generally Accepted Accounting

Disclosures Are Not Included For the Year Ended December 31, 2016

Deemer CPA and Consulting Services, LLC

P.O. Box 870847 • New Orleans, Louisiana 70187 • 504.401.9581 • Fax 504.245.5886

St. John #5 Baptist Church, Inc. Table of Contents

PAGE

Accountant's Compilation Report 1

Statement of Financial Position 2

Statement of Activities 3

Statement of Cash Flows 4

Selected Information-Substantially All Disclosures Required By 5 Generally Accepted Accounting Principles - Are not Included

Schedule of Functional Expenses 6

Current Year Report Finding 7

Update of Prior Year Findings 8

Schedule of Compensation, Payments, and Other Benefits to Agency Head 9

DEEMER BRENDEL W. DEEMldRXPA

CPA&CONSUJ.TING liren(lclc!ecnit;r@aol.coin SERVICES, LLC

Compilation Letter

To the Board of Director's of St. John #5 Baptist Church, Inc. New Orleans, Louisiana

I have compiled the statement of financial position of St. John #5 Baptist Church, Inc. as of December 31, 2016, and the related statement of activities and cash flows for the year then ended. I have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other conclusion about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America.

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for developing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements.

My responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain any assurance that there are no material modifications that should be made to the financial statements.

Management has elected to omit substantially all of the disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the organization's financial position and result of operations. Accordingly, these financial statements are not designed for those who are not informed about such matters.

PeemerCfVl cuxd^CorwMin^Service, LLC

June 30,2017

P.O. Box 870847 • New Orleans, Louisiana 70187 • 504.401.9581 • Fax 504.245.5886

St. John #5 Baptist Church, Inc. Statement of Financial Position

December 31.2016

Assets

Grant Receivable

Total Current Assets

Fixed Assets (Net)

Total Assets

Liabilities and Net Assets

Current Liabilities Accounts Payable

Total Current Liabilities

Long Term Liabilities Note Payable

Total Long Term Liabilities

Total Liabilities

Net Assets

Unrestricted

Total Net Assets

Total Liabilities and Net Assets

2016

25,521

25,521

138,870

164,391

367

367

57,247

57,247

57,614

106,777

106,777

164,391

St. John #5 Baptist Church, Inc. Statement of Activities

For the Year Ended December 31.2016

Revenues and Other Support

Grant Income Foundation Support Tithes & Offerings

Total Revenues

2016

179,438 12,930 89,189

281,557

Expenses

Program Services Support Services

Total Expenses

Change In Net Assets

Net Assets At Beginning Of Year

Net Assets At End Of Year (Unrestricted)

207,357 151,874

359,231

(77,674)

184,451

106,777

St. John #5 Baptist Church, Inc. Statement of Cash Flows

For the Year Ended December 31.2016

Cash Flows From Operating Activities:

Changes in Net Assets Adjustments to Reconcile Net Revenues over Expenditures to Net Cash Provided by Operating Activities

Depreciation Expense

Changes in Operating Assets and Liabilities

Grant Receivable Accounts Payable

Net Cash Provided by Operating Activities

Cash Flows From Financing Activities:

Cash borrowed for renovation and repairs

Net Cash Used in Financing Activities

2016

$ (77,674)

1,250

20,292 367

(55,765)

28,209

28,209

Net Cash Increase (Decrease) for Period

Cash, At Beginning of Period January 1,

Cash, At End of Period December 31,

(27,556)

27,556

St. John #5 Baptist Church, Inc. Selected Information-Substantially All Disclosures Required by

Generally Accepted Accounting Principles Are Not Included For the Year Ended December 31. 2016

Note 1 - Nature of Activities and Summary of Significant Accounting Policies

General - St. John #5 Baptist Church, Inc. is a non-profit corporation organized under the laws of the State of Louisiana. Its mission is to provide positive community responses to people affected by HIV/AIDS and reduce the spread of HIV/AIDS through education and testing in New Orleans and its' surrounding area. The agency's operations are funded primarily through federal and state grants, and private foundations.

Basis of Accounting - St. John's financial statements are prepared on the accrual basis of accounting, whereby revenue is recorded when earned and expenses are recorded when incurred.

Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ firom those estimates.

Property and Equipment - Improvements which significantly extend the useful life of an asset and purchases of equipment are capitalized. The straight line method of depreciation is used for the assets owned by St. John. The estimated useful lives of these assets range from 3 to 27 years.

Income Taxes - St. John has been determined to be tax exempt under Section 501 (c) 3 of the Internal Revenue Code. Therefore, no provision for income taxes is made in the accompanying financial statements.

Cash - Cash is comprised of cash on hand and in banks.

Functional Allocation of Expenses -The costs of providing the various programs and activities have been summarized on a functional basis in the statement of activities. Accordingly, program and support service expenses are specifically identified with or allocated to the Agency's various functions. Expenses requiring allocation include services provided by the Agency's management and administrative staff to specific program-related activities. Expense allocations are prorated based on a percentage of time or actual usage.

2. Grant Receivable -Grant receivable consists of outstanding payments from State of Louisiana Grant Funds which totaled $25,521. These amounts are deemed collectible as such, there has been no adjustment made to an allowance for doubtful accounts.

3. Note Payable -The Agency has an agreement with a local banking institution for a loan incurred for the purpose of renovations and repairs. The loan has a balance of $57,247 as of December 31, 2016.

4. Board of Directors Compensation -The board of directors operates on a voluntary basis, as such there were no payments made to any board member during the year ended December 31, 2016 for services.

St. John #5 Baptist Church, Inc. Schedule of Functional Expenses

For the Year Ended December 31.2016

SUPPORT SERVICES TOTAL EXPENSE CHURCH GENERAL &

ADMINISTRATION PROGRAM SERVICES

Payroll Expenses $ $ $ 16,692 $ 16,692 Payroll Taxes - - 91,612 91,612 Advertising/Media - 31 248 279 Bank Service Charges 94 573 1,648 2,315 Contributions/Donations 300 2,225 - 2,525 Dues & Subscriptions - - 195 195 Insurance - - 16,682 16,682 Licenses & Permits 1,160 15 - 1,175 Postage & Delivery - 49 - 49 Professional Fees 40,110 23,568 20,250 83,928 Telephone - 530 7,693 8,223 Travel & Entertainment - 1,829 7,368 9,197 Utilities - 1,589 5,560 7,149 Office Supplies - 939 916 1,855 Supplies 133 3,823 26,268 30,224 Repairs & Maintenance 1,880 4,789 - 6,669 Interest Expense - 10,007 - 10,007 Depreciation Expense - 1,250 - 1,250 Miscellaneous - 20,774 12,225 32,999 Van Expense 6,954 153 - 7,107 Ministry Expense 28,807 292 - 29,099

Total Expenditures $ 79,438 $ 72,436 $ 207,357 $ 359,231

St. John #5 Baptist Church, Inc. Current Year Report Findings

For the Year Ended December 31.2016

16.1 Report Observation

Criteria:

The State of Louisiana audit law requires that the agency complete its reporting requirements within six months following the end of their fiscal year.

Condition:

The agency did not provide the financial information needed to fulfill their reporting requirements in a timely mamiCT.

Cause:

The agency did not perform its yearly close-out in a timely manner.

Effect:

The agency's financial report was not submitted timely to the State of Louisiana Legislative Auditor's office.

Recommendation:

It is recommended that the agency maintain monthly financial statements to ensure completion of year-end financial statements in a timely manner.

Management's Response:

St. John #5 Baptist Church is committed to ensuring that our accountant will provide monthly financial data as needed and timely.

St. John #5 Baptist Church, Inc. Prior Year Findings Update

For the Year Ended December 31. 2016

15.1 Late Reporting UNRESOLVED

St. John #5 Baptist Church, Inc. Schedule of Compensation, Payments, and Other Benefits to

Agency Head 2016

Name Tide Amount Date Description Bruce Davenport Pastor $ 20,223 2016 Payroll Expenses

St. John #5 Baptist (Faith) Church Camp ACE (Alert Community Empowerment)

3613 Hamburg St., NOLA 70122 (504) 283-7376 (ph) (504) 267-0195 (fax)

Website: www.fljesus.com

Bruce A. Daveoport, Sr.. Pastor/Executire Director Email: pastorbnice7@Yalioo.com (504) 228-3479 (c)

Gerald Joseph, Sr., President (504) 250-4666 (c)

July 5, 2017

Greetings Brendel Deemer, This letter is to respond to our unresolved finding of late submission for our 2016 compilation report completed. St. John experienced an unfortunate computer crash and Quickbooks software crash which delayed submission of required reports due to staff having to repair and update the computer, software and reports. It was a costly task that has been rectified.

St. John's resolution to this finding: • Make sure to resolve any technology and/or software problems as soon as possible. • Accurately complete required paperwork for review in a timely manner, before deadlines. • Adhere to required deadlines and submit required documents in a timely manner.

If you have any questions, please feel free to contact me.

Cordially,

Bruce A. Davenport, Sr. Pastor/Executive Director Pastorbruce7@yahoo.com 504-228-3479 cell 504-283-7376 work