%^3 LAFAYETTE ASSOCIATION FOR RETARDED CITIZENS. INC. Lafayette, Louisiana AUDIT REPORT June 30. 2009 AULD & ASSOCIATES Certified Public Accountants 112 Fountain Bend Drive Lafayette. Louisiana 70506 E-mail [email protected] Under provisions of state law, this report is a public document. Acopy of the repori has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the LegislativeAuditor and, v^/here appropriate, at the office of the parish clerk of court. Release Date o^J^'^j/O CONTENTS Pag( Independent Auditors' Report on the Basic Financial Statements and Additional Information 1 Statement of Financial Position 3 Statement of Activities 4 Statement of Functional Expenses 5 Statement of Cash Flows 7 Notes to Financial Statements 8 Schedule of Activities by Component 12 Independent Auditors' Report on Intemal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Govemment Auditing Standards 14 Summary of Prior Year Findings and Management's Con-ective Action Plan 16 iuiLD & l\s SOCIATES Certified PubUc Accountants 111 Fountain Bend Drive Lafayette, Louisiana 70306 Telephone (337) 984-9717 Fax (337) 984-5544 Toll Free (877) 814-3246 E-Mail: [email protected] INDEPENDENT AUDITORS' REPORT ON THE BASIC FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION The Board of Directors Lafayette Association for Retarded Citizens. Inc. Lafayette, Louisiana We have audited the accompanying statement of financial position of Lafayette Association for Retarded Citizens, Inc.. (a nonprofit organization) as of June 30, 2009, and the related statements of activities, functional expenses, and cash flows for the year then ended. These financial statements are the responsibility ofthe Association'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 States of America and the standards applicable to financial audits contained in Govemment 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 free of material misstatement An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also indudes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audit provides a reasonable basis for our opinion. On May 1, 1979, buildings in existence were restated to appraisal values. In our opinion, assets should be stated at acquisition cost, or if donated, recorded at their fair value at the date of the gift, net of depreciation, to conform with generally accepted accounting principles. The effects of this practice on the financial statements are undetermined. In our opinion, except for the effects of recording certain buildings at appraisal values, as discussed in the preceding paragraph, the financial statements referred to in the first paragraph present fairiy in all material respects tiie financial position of Lafayette Association for Retarded Citizens, Inc., as of June 30, 2009, and the changes in its net assets and its cash flows for the year then ended in conformity witii accounting principles generally accepted in the United States of America. In accordance with Govemment Auditing Standards, we have also issued our report dated December 30, 2009, on our consideration of the Association's intemal control over financial reporting and our tests of its compliance witii certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of intemal 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 Govemment Auditing Standards and should be considered in assessing the results of our audit Mnnber Society of Louisiana Certified Public AccounUnts Our audit was conducted for tiie purpose of fomiing an opinion on the basic financial statements of Lafayette Association for Retarded Citizens. Inc., taken as a whole. The accompanying additional information contained in the schedule of activities by component is presented for purposes of additional analysis and is not a required part of the basic financial statements. The information in this schedule has been subjected to the auditing procedures applied in tiie audit of the basic financial statements and, in our opinion, is fairiy presented, in all material respects, in relation to the basic financial statements taken as a whole. AULp^& ASSOpiATES Certified Public Accountants Lafayette, Louisiana December 30. 2009 LAFAYETTE ASSOCIATION FOR RETARDED CITIZENS, INC. Lafayette, Louisiana STATEMENT OF FINANCIAL POSITION June 30, 2009 ASSETS CURRENT ASSETS Cash $1,806,247 Accnjed Interest Receivable 7,810 Accounts Receivable (net of allowance for doubtful accounts of $5,000) 428,725 Contiibutions Receivable 6,000 Due from Foundation for Retarded Citizens, Inc. 1,433 Inventory 14,607 Woric in Progress 15,490 Deposits 29,185 Prepaid Expenses 8.393 Total Cun-ent Assets $2,317,890 OTHER ASSETS Certificates of Deposit 2,512,678 COLLECTIONS (See Note 4) PLANT ASSETS Buildings $4,188,831 Fumiture and Fixtures 108,412 Machinery and Equipment 636,501 Transportation Equipment 547,401 Land 112,099 Totals $5,595,244 Less: Accumulated Depreciation 3.701.354 Total Plant Assets 1.893.890 TOTAL ASSETS £6,724.458 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable $ 28,390 Accnjed Payroll and Payroll Taxes 89,454 Deferred Revenue 5.650 Total Cun-ent Liabilities $ 123.494 NET ASSETS Unrestiicted Operating $4,707,074 Plant Assets 1.893.890 Total Net Assets 6.600.964 TOTAL LIABILITIES AND NET ASSETS ^g.724.458 See accountants' report and accompanying notes to financial statements. LAFAYETTE ASSOCIATION FOR RETARDED CITIZENS, INC. Lafayette, Louisiana STATEMENT OF ACTIVITIES For tiie Year Ended June 30, 2009 Unrestricted Net Assets REVENUE AND PUBLIC SUPPORT Revenue Program Revenues $5,601,103 Interest and Dividend Income 100,485 Membership Dues 2,913 Other Revenue 6,498 Gain on Sale of Assets 12.513 Total Revenue $5,723,512 Public Support Contiibutions $ 177,054 Special Events 402.857 Total Public Support 579.911 TOTAL REVENUE AND PUBLIC SUPPORT $6.303.423 FUNCTIONAL EXPENSES Program Services Vocational Services $2,076,226 Residential Services 1,728,465 Community Supports and Services 981,192 Acadian Village 389.139 Total Program Services $5,175,022 Supporting Services Management and General $ 647.900 Fund-raising 181.244 Total Supporting Services 829.144 TOTAL FUNCTIONAL EXPENSES $6.004.166 INCREASE IN NET ASSETS $ 299.257 NET ASSETS, BEGINNING OF YEAR 6.301.707 NET ASSETS, END OF YEAR $6.600.964 See accountants' report and accompanying notes to financial statements. 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Lafayette, Louisiana STATEMENT OF CASH FLOWS For tine Year Ended June 30, 2009 CASH FLOWS FROM OPERATING ACTIVITIES Increase in Net Assets $ 299,257 Adjustinents to Reconcile Increase in Net Assets to Net Cash Provided by Operating Activities Depreciation 222,375 Gain on Sale of Assets (12,513) Non-Cash Contributions (6,000) (Increase) Decrease in Operating Assets Accrued Interest Receivable (5,516) Accounts Receivable (18.957) Contributions Receivable 1,329 Inventory (1,913) Wori< in Progress (15,490) Deposits (3,734) Prepaid Expenses 688 Increase (Decrease) in Operating Liabilities Accounts Payable (54.121) Acxnjed Payroll and Payroll Taxes 15,489 Deferred Revenue f2.100) NET CASH PROVIDED BY OPERATING ACTIVITIES £ 418.794 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sale of Assets $ 12,513 Redemption of Certificates of Deposit 700,000 Purchase of Certificates of Deposit (925,347) Payments for Property and Equipment (279.440) NET CASH USED BY INVESTING ACTIVITIES $ (492,274) NET DECREASE IN CASH $ (73,480) CASH AT BEGINNING OF YEAR 1.879.727 CASH AT END OF YEAR yi .806.247 SUPPLEMENTAL DISCLOSURES Non-Cash investing and Financing Activities Property and Equipment acquired with non-cash contributions $ 6.000 See accountants' report and accompanying notes to financial statements. LAFAYETTE ASSOCIATION FOR RETARDED CITIZENS. INC. Lafayette, Louisiana NOTES TO FINANCIAL STATEMENTS June 30. 2009 NOTE 1 - NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES NATURE OF ACTIVITIES The Association administers programs for the benefit of retarded citizens in an eight-parish area of Southwest Louisiana. Funding of these programs is primarily from govemmental sources. Also, the Association operates Acadian Village, a living museum visited by tourists and used by the community for public events. The Village primarily generates revenue by admission, gift shop sales, and rental of its facilities. The Village employs tiie clients of the Association to maintain and operate the facility as a part of the work activity programs.