SAVOY CANCER CENTER, INC.
Financial Report
Years Ended December 31,2005 and 2004
Under provisions of state law, this report is a publicdocument. A copy of the report has been submitted tothe entity and other appropriate public officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.
Release Date ° ~
TABLE OF CONTENTS
Page
Independent Auditors' Report 1-2
FINANCIAL STATEMENTS
Statements of financial position 4
Statements of activities 5-6
Statements of cash flows 7
Notes to financial statements 8-13
INTERNAL CONTROL AND COMPLIANCE
Report on Internal Control over Financial Reporting and onCompliance and Other Matters Based on an Auditof Financial Statements Performed in Accordancewith Government Auditing Standards 15-16
KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTS
C. Burton Kolder, CPA- OFFICESRussell F. Champagne, CPA*Victor R.SIaven, CPA*P. Troy Courvitle, CPA* 183 South Beadle Rd. 113 East Bridge StGerald A. Thibodeaux, Jr.. CPA* Lafayette. LA 70508 Breaux Bridge, LA 70517Robert S. Carter, CPA* Phone (337) 232-4141 Phone (337) 332-4020Arthur R. Mixon, CPA Fax (337) 232-8660 Fax (337) 332-2867
133 East Waddil 1234 David DR. Ste 105Tynes E. Mixon, Jr., CPA Marksville, LA 71351 Morgan City, LA 70380Allen J. LaBry. CPA Phone (318) 253-9252 Phone (985) 384-2020Albert R. Leger, CPA,PFS,CSA* Fax (318) 253-8681 Fax (985) 384-3020Harry J. Clostk), CPAPenny Angelte Scruggins. CPA 408 West Cotton Street 332 West Sixth AvenueChristine L. Cousin, CPA Villa Platte, LA 70586 Obertin, LA 70655Mary T. Thibodeaux, CPA Phone (337) 363-2792 Phone (337) 639-4737James R. Roy, CPA Fax (337) 363-3049 Fax (337) 639-4568Robert J. Mete, CPAKelly M. Doucet, CPA 200 South Main Street 450 East Main StreetKenneth J. Rachai, CPA Abbeville, LA 70510 New Iberia, LA 70560Cheryl L. Bartiey, CPA, CVA Phone (337) 893-7944 Phone (337) 367-9204Mandy B. Self, CPA Fax (337) 893-7946 Fax (337) 367-9208Chris E. Bilski, CPA
WEB SITE;Retired: WWW.KCSRCPAS.COMConrad 0. Chapman, CPA* 2006
* A Professional Accounting CorporationINDEPENDENT AUDITORS' REPORT
To the Board of DirectorsSavoy Cancer Center, Inc.
Mamou, Louisiana
We have audited the accompanying statement of financial position of Savoy Cancer Center, Inc. (anonprofit organization), consisting of the Savoy Cancer Center Operations Fund and the Town of MamouCancer Center Building Fund as of December 31, 2005 and the related statements of activities, and cash flowsfor the year then ended. These financial statements are the responsibility of the Organization's managementOur 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 perform theaudit 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 financialstatements. An audit also includes assessing the accounting principles used and the significant estimates madeby management, as well as evaluating the overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of Savoy Cancer Center, Inc. as of December 31, 2005 and the changes in its net assets andits cash flows for the year then ended in conformity with accounting principles generally accepted in theUnited States of America.
In accordance with Government Auditing Standards, we have also issued our report dated April 19,2006, on our consideration of Savoy Cancer Center, Inc.'s internal control over financial reporting and on ourtests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and othermatters. The purpose of that report is to describe the scope of our testing of internal control over financialreporting and compliance and the results of that testing and not to provide an opinion on the internal controlover financial reporting or on compliance. That report is an integral part of an audit performed in accordancewith Government Auditing Standards and should be considered in assessing the results of our audit.
Member of: Member of:AMERICAN INSTITUTE OF SOCIETY OF LOUISIANACERTIFIED PUBLIC ACCOUNTANTS CERTIFIED PUBLIC ACCOUNTANTS
The financial information for the preceding year, which is included for comparative purposes, wastaken from the financial report for that year in which we expressed an unqualified opinion on the financialstatements of the Savoy Cancer Center, Inc.
Kolder, Champagne, Slaven & Company, LLCCertified Public Accountants
Lafayette, LouisianaApril 19, 2006
FINANCIAL STATEMENTS
SAVOY CANCER CENTER, INC.Maraou, Louisiana
Statements of Financial PositionDecember 31,2005 and 2004
ASSETS
Current assets:Cash and interest-bearing depositsAccounts receivable, (net of allowance
for billing adjustments 2005, $1,582,825; 2004, $571,389)Interest receivableDue from Savoy Medical CenterInventory
Prepaid expenses
Total current assets
Restricted assets:Interest bearing deposits:
Revenue bond sinking fundRevenue bond depreciation and contingency fund
Investments:
Revenue bond reserve fund
Total restricted assets
Property, plant, & equipment:Office furniture and equipmentEquipmentBuilding
Total property, plant & equipmentAccumulated depreciation
Net property, plant & equipment
Total assets
LIABILITIES AND NET ASSETS
Current liabilities:Accounts payableAccrued expensesCompensated absences payableInterest payablePayable from restricted assets:
Revenue bonds payableInterest payable - revenue bonds
Total current liabilities
Long - term liabilitiesReserve fund payable - SMF, Inc.
Revenue bonds payable
Total long - term liabilities
Total liabilities
Net assets:Unrestricted and owned by Town of Marnou
Total liabilities and net assets
Town ofSavoy Cancer Mamou Cancer
Center Center BuildingOperations Fund Fund
Totals
(Memorandum Only)2005
$ 128,366
807,9591,2784,20189,20059,518
1,090,522
-
_
-
--
--_
$1,090,522
$ 163,98610,62112,0261,278
--
187,911
--
187,911
902,611
$1,090,522
2005
$
.-----
180,849205,469
500,000886,318
25,2082,446,2662,641,4445,112,918(1,167,741)3,945,177
$4,831,495
$---
850,00064,532914,532
3,170,0003,170,000
4,084,532
746,963
$4,831,495
2005
$ 128,366
807,9591,2784,20189,20059,518
1,090,522
180,849205,469
500,000886,318
25,2082,446,2662,641,4445,112,918(1,167,741)3,945,177
$5,922,017
$ 163,98610,62112,0261,278
850,00064,532
1,102,443
3,170,000
3,170,000
4,272,443
1,649,574
$5,922,017
2004
$ 90,786
310,8766,111
-78,32929,328515,430
197,613202,744
500,000900,357
24,3442,446,2662,641,4445,112,054(906,332)4,205,722
$ 5,621,509
$ 185,24912,7867,2201,111
330,00070,583606,949
500,0003,520,000
4,020,000
4,626,949
994,560
$ 5,621,509
The accompanying notes are an integral part of this statement.
SAVOY CANCER CENTER, INC.Mamou, Louisiana
Statements of ActivitiesYears Ended December 31, 2005 and 2004
Support and revenue (unrestricted):Support:
Contributions
Revenue:Net patient service revenue
Total support and revenue
Expenses:Program services:Salaries and benefitsMaintenance contractsDrugs and medicationsSupplies and materialsDisposal serviceHospital mealsLaundry servicesAccelerator service consultant
Total program services
Support services:Salaries and benefitsAttorney feesDepreciation expenseDues and subscriptionsRepairs and maintenanceUtilitiesAdvertisingOffice supplies and expensesTelephoneInsuranceOther feesMiscellaneous feesLegal and professional fees
Total support services
Total expenses
Savoy CancerCenter
OperationsFund
2005
$ 200
2,702,281
2,702,481
574,03398,202
879,34129,368
3,226604297
-
1,585,071
192,2755,422-
6,01517,32541,00711,13621,87918,38785,123
1,02026,46814,575
440,632
2,025,703
Town ofMamou Totalg
Cancer CenterBuilding Fund (Memorandum Only)
2005 2005
$ - $ 200
2,702,281
2,702,481
574,03398,202
879,34129,368
3,226604297
_
1,585,071
192,2755,422
261,410 261,4106,015
17,32541,00711,13621,87918,38785,123
1,02026,46814,575
261,410 702,042
261,410 2,287,113
2004
$ 13,903
1,716,900
1,730,803
387,354125,231849,53232,7302,4813,0321,227
13,200
1,414,787
153,0352,050
261,1325,946
11,70550,9936,9499,881
11,97152,636
41515,29913,749
595,761
2,010,548
(continued)
SAVOY CANCER CENTER, INC.Mamou, Louisiana
Statements of Activities (Continued)Years Ended December 31, 2005 and 2004
Excess(deficiency) of revenues over expenses
Nonoperating revenues (expenses):Transfers from (to) other fundAppropriation from Town of MamouInterest incomeInterest expense - revenue bondsInterest expense - other
Total nonoperating revenues (expenses)
Increase (decrease) in unrestricted net assets
Net assets, beginning
Net assets, ending
Savoy CancerCenter
OperationsFund
2005
676,778
(84,313)-
11,249-
(10,167)
(83,231)
593,547
309,064
Town ofMamou
Cancer CenterBuilding Fund
2005
(261,410)
84,313444,262
-(205,698)
-
322,877
61,467
685,496
2005
415,368
444,26211,249
(205,698)(10,167)239,646
655,014
994,560
2004
(279,745)
455,30314,401
(223,117)(9,982)
236,605
(43,140)
1,037,700
$ 902,611 $ 746,963 $1,649,574 $ 994,560
The accompanying notes are an integral part of this statement.
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SAVOY CANCER CENTER, INC.Mamou, Louisiana
Statements of Cash FlowsYears Ended December 31, 2005 and 2004
Cash flows from operating activities:Excess(deficiency) of revenues over expenses
Adjustments to reconcile change in net assetsto net cash provided (used) by operating activities:
Depreciation(Increase) decrease in net accounts receivableIncrease in due from Savoy Medical CenterIncrease in inventory(Increase) decrease in prepaid expensesIncrease (decrease) in accounts payableIncrease (decrease) in accrued expensesIncrease (decrease) in compensated
absences payableIncrease in interest payable
Net cash provided by operating activities
Cash flows from noncapital financing activities:Transfers from (to) other fundAppropriation from Town of Mamou
Net cash provided (used) by
noncapital financing activities
Cash flows from capital financing activities:Principal paid on revenue bondsInterest paid on revenue bondsInterest paid - Savoy Memorial Foundation note
Net cash used by noncapital financing activities
Cash flows from investing activities:Interest received on interest-bearing depositsAcquisitions of property, plant, & equipment
Net cash provided (used) by investing activities
Net increase (decrease) in cash andcash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Town ofSavoy Cancer Mamou Cancer
Center Operations Center BuildingFund Fund
2005
(497,083)(4,201)(10,871)(30,190)(21,263)(2,165)
4,806166
115,977
(84,313)
(84,313)
16,082
16,082
37,579
2005
$ 676,778 $ (261,410)
261,410
84,313444,262
528,575
(330,000)(211,749)
(10,167) -
(10,167) (541,749)
(864)
(864)
(14,038)
Totals(Memorandum Only)2005
$ 415,368
261,410(497,083)(4,201)(10,871)(30,190)(21,263)(2,165)
4,806166
115,977
444,262
444,262
(330,000)(211,749)(10,167)
(551,916)
16,082(864)
15,218
23,541
491,143
$ 514,684
2004
$ (279,745)
261,13290,835
(4,092)4,688
(25,352)8,193
(2,126)
53,533
455,303
455,303
(310,000)(228,801)(9,982)
(548,783)
9,401(6,457)
2,944
(37,003)
528,146
$ 491,143
The accompanying notes are an integral part of this statement.
SAVOY CANCER CENTER, INC.Mamou, Louisiana
Notes to Financial Statements
(1) Summary of Significant Accounting Policies
A. Organization
The Town of Mamou (Town) owns the cancer treatment health care facilitieslocated in Mamou, Louisiana, which are operated (See Note 2) by Savoy CancerCenter, Inc. (Center). The Center is a nonprofit organization incorporated on June29, 1998. The Center was formed for the purpose of operating and managing afacility for treating cancer patients and is exempt from income taxes under Section501(c)(3) of the Internal Revenue Code. The direction, administration andmanagement of the Center is governed by a Board of Directors or Trustees of not lessthan six (6) nor more than ten (10) members. The members serve terms of one tothree years.
B. Financial Statement Presentation
The Center has adopted the provisions of Statements of Financial AccountingStandards No. 117, "Financial Statements of Not-for-Profit Organizations".Statement No. 117 requires the Center to report information regarding its financialposition and activities according to three classes of net assets: unrestricted net assets,temporarily restricted net assets and permanently restricted net assets.
C. Basis of Accounting
The Center has adopted the provisions of Statements of FinancialAccounting Standards No. 116 "Accounting for Contributions Received andContributions Made". As such, contributions are recognized as revenue when theyare received or unconditionally pledged. Contributions are recorded as unrestricted,temporarily restricted or permanently restricted support depending on the existenceand/or nature of any donor restrictions. Those donor-restricted contributions whoserestrictions, however, are met in the same reporting period are reported asunrestricted support.
The Center reports gifts of land, buildings, and equipment as unrestrictedsupport unless explicit donor stipulations specify how the donated assets must beused. Gifts of long-lived assets with explicit restrictions that specify how the assetsare to be used and gifts of cash or other assets that must be used to acquire long-livedassets are reported as restricted support. Absent explicit donor stipulations abouthow these long-lived assets must be maintained, the Center reports expirations ofdonor restrictions when the donated or acquired long-lived assets are placed inservice.
SAVOY CANCER CENTER, INC.Mamou, Louisiana
Notes to Financial Statements (Continued)
D. Cash and Cash Equivalents
Cash and cash equivalents includes highly liquid investments with a maturityof three months or less when purchased.
E. Accounts Receivable
Accounts receivable is reported net of an allowance for billing adjustments.The allowance is based on estimates using industry standards, by the Savoy CancerCenter, Inc. as amounts that will actually be collected from service providers.
F. Property and Equipment
The Town of Mamou owns all property and equipment. The cost of propertyand equipment, which has an expected useful life in excess of two years and anacquisition cost in excess of a specified price, is capitalized. Property and equipmentare valued at historical cost and will be depreciated on a straight-line basis.
G. Donated Services and Materials
Contributions of services are recognized if the services received (a) create orenhance non-financial assets or (b) require specialized skills, are provided byindividuals possessing those skills, and would typically need to be purchased if notprovided by donation.
H. Estimates
The preparation of financial statements in conformity with generallyaccepted accounting principles requires management to make estimates andassumptions that affect certain reported amounts and disclosures. Accordingly,actual results could differ from those estimates.
I. Income Taxes
The Center is a nonprofit organization and is exempt from Federal incometax as an organization described in Section 501(c)(3) of the Internal Revenue Code.
J. Report Classification
Certain previously reported amounts for the year ended December 31, 2004have been reclassified to conform to the December 31,2005 classifications.
SAVOY CANCER CENTER, INC.Mamou, Louisiana
Notes to Financial Statements (Continued)
(2) Operating and Management Agreement
On September 16, 1999, an agreement was entered into between the Town and the Center fora fifteen-year (15) term. The Town is the owner of the cancer treatment facility and retains theservices of the Center to provide experience, skills, supervision and necessary personnel for theoperation and management of the facility. Various reporting and accountability requirements must beperformed and submitted to the Town by the Center on a periodic basis. The Center will provide allservices specified in the agreement at no fee to the Town.
The Town shall, on a monthly basis or intermittently, as determined by the Center, reimbursethe Center for all operating expenses related to the operation and management of the facility. TheTown is also required to maintain insurance coverage on behalf of the facility. This agreement may beterminated "for cause" by either party at any time during the term by giving written notice to theother. The Town has the right of termination without cause under specified circumstances in theagreement.
(3) Investments
The Center can invest in direct debt securities of the United States unless law expresslyprohibits such an investment. The Center's investments are categorized to give an indication of thelevel of risk assumed by it at year-end. Category 1 includes investments that are insured or registeredor for which the securities are held by the Center or its agent in the Center's name. Category 2includes uninsured and unregistered investments with securities held by the counterparty's trustdepartment or agent in the Center's name. Category 3 includes uninsured and unregisteredinvestments with securities held by the counterparty, or by its trust department or agent, but not in theCenter's name.
The carrying amounts and approximate market values of investments held at December 31,2005 are summarized as follows:
Interest Carrying FairDescription Rate Category Amount Value
U.S. Treasury Note 2.00% 1 $ 500,000 $ 496,641
(4) Accounts Receivable
Accounts receivable at December 31, 2005 and 2004 consists of the following:
2005 2004
Billed: Completed and treatments in progress $2,390,784 $ 882,265Less: Allowance for billing adjustments (1,582,825) (571,389)
Accounts receivable $ 807,959 $ 310,876
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SAVOY CANCER CENTER, INC.Mamou, Louisiana
Notes to Financial Statements (Continued)
(5) Inventory
Inventory consists of drugs purchased and available for use in patient treatments as ofDecember 31. 2005. Inventory is stated at the lower of cost, determined by the average costingmethod, or market.
(6) Restricted Assets
Restricted assets consisted of the following at December 31, 2005:
Revenue bond sinking fund $ 180,849Revenue bond depreciation and contingency fund 205,469Revenue bond reserve fund 500,000
Total $ 886,318
Savoy Memorial Foundation (Foundation) donated funds in the amount of $500,000 for thepurpose of establishing a debt service reserve fund for the $5,000,000 bonds issued by the Town ofMamou and used to construct the Savoy Cancer Center facility. The long - term liability of reservefund payable - SMF, Inc. is also attributable to this donation of funds. As documented in theFebruary 3, 1999 minutes of the Foundation, the interest earned on these monies must be remitted tothe Foundation within three days of receipt of such earnings. The $500,000, as well as any accruedinterest, must be paid to the Foundation at the time that the Bonds have been fully paid in principaland interest.
(7) Property and Equipment
A summary of property, plant and equipment at December 31,2005 and 2004 is as follows:
OfficeFurniture Equipment Buildings
Balances 12/31/04 $ 24,344 $ 2,446,266 $ 2,641,444
Additions 864
Deletions - - -
Balances 12/31/05 $ 25,208 $ 2,446,266 $ 2,641,444
All property, plant and equipment are owned by the Town of Mamou and are used as securityfor the revenue bonds payable.
11
SAVOY CANCER CENTER, INC.Mamou, Louisiana
Notes to Financial Statements (Continued)
(8) Long-Term Liabilities
Long-term liabilities at December 31, 2005 and 2004 consisted of the following:
2005 2004Revenue bonds, series 1999 (collateralized by the Cancer Center)issued by the Town of Mamou , original principal of $5,000,000,interest at 5.5% maturing serially from $265,000 in 2001 to $440,000in 2014. $ 3,520,000 $ 3,850,000
Reserve fund payable to Savoy Memorial Foundation, secured by$500,000 Revenue Bond Reserve Funds, interest at variable notes,payable on September 1,2014. 500,000 500,000
$4,020,000 $4,350,000
Less: current maturities 850,000 330,000
Total long-term liabilities $3,170,000 $4,020,000
Long-term debt matures as follows:
Years Totals2006 850,0002007 370,0002008 390,0002009 410,0002010 360,000
2011 and thereafter 1,640,000
$4,020,000
The revenue bonds relate to the construction of the Savoy Cancer Center facility by the Townof Mamou. The Town adopted resolutions that contain certain covenants and agreements relating tothe payment of the bonds. As described in Note 6, certain sinking fund deposits are required forfuture payment of principal and interest, reserve and contingency needs. In February 2006 thesebonds were refunded by the Town of Mamou.
(9) Net Patient Service Revenue
Outpatient services related to Medicare/Medicaid program beneficiaries are paid based on afee schedule provided by Medicare/Medicaid.
12
SAVOY CANCER CENTER, INC.Mamou, Louisiana
Notes to Financial Statements (Continued)
(10) Risk Management
The Center is exposed to risks of loss in the areas of general liability, management liabilityand workers' compensation. All of these risks are handled by purchasing commercial insurancecoverage. There have been no significant reductions in the insurance coverage during the year.
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INTERNAL CONTROL
AND
COMPLIANCE
14
KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLCCERTIFIED PUBLIC ACCOUNTANTS
C. Burton Kolder, CPA' OFFICESRussell F. Champagne, CPA'Victor R. Slaven, CPA"P. Troy Courville, CPA" 183 South Beadte Rd. 113 East Bridge St.Gerald A Thibodeaux, Jr., CPA* Lafayette, LA 70508 Breaux Bridge, LA 70517Robert S. Carter, CPA' Phone (337) 232-4141 Phone (337) 332-4020Arthur R. Mixon, CPA Fax (337) 232-8660 Fax (337) 332-2867
133 East Waddil 1234 David DR Ste 105Tynes E. Mixon, Jr., CPA Marksville. LA 71351 Morgan Ctty, LA 70380Allen J. LaBry, CPA Phone (318) 253-9252 Phone (985) 384-2020Albert R. Leger. CPA.PFS.CSA* Fax (318) 253-8881 Fax (985) 384-3020Harry J. Clostio, CPAPenny Angelto Scruggin*. CPA 408 West Cotton Street 332 West Sixth AvenueChristine L. Cousin, CPA Ville Platte, LA 70586 Obertin. LA 70655Mary T. Thibodeaux, CPA Phone (337) 363-2792 Phone (337) 639-4737James R, Roy, CPA Fax (337) 363-3049 Fax (337) 639-4568Robert J. Metz, CPAKelly M. Doucet, CPA 200 South Main Street 450 East Main StreetKenneth J. Rachal. CPA Abbeville, LA 70510 New Iberia, LA 70560Cheryl L Bartley, CPA, CVA Phone (337) 893-7944 Phone (337) 367-9204Mandy B. Self, CPA Fax (337) 893-7946 Fax (337) 367-9208Chris E. Bilski, CPA
WEB SITE;Retire* WWW.KCSRCPAS.COMConrad 0. Chapman, CPA" 2006
*A Professional Accounting Corporation
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ONCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITH GOVERNMENT AUDITING STANDARDS
To the Board of DirectorsSavoy Cancer Center, Inc.Mamou, Louisiana
We have audited the financial statements of the Savoy Cancer Center, Inc. (a nonprofit organization)as of and for the year ended December 31,2005, and have issued our report thereon dated April 19, 2006. Weconducted our audit in accordance with auditing standards generally accepted in the United States of Americaand the standards applicable to financial audits contained in Government Auditing Standards, issued by theComptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Savoy Cancer Center, Inc.'s internal controlover financial reporting in order to determine our auditing procedures for the purpose of expressing ouropinion on the financial statements and not to provide an opinion on the internal control over financialreporting. Our consideration of the internal control over financial reporting would not necessarily disclose allmatters in the internal control that might be material weaknesses. A material weakness is a reportablecondition in which the design or operation of one or more of the internal control components does not reduceto a relatively low level the risk that misstatements caused by error or fraud in amounts that would be materialin relation to the financial statements being audited may occur and not be detected within a timely period byemployees in the normal course of performing their assigned functions. We noted no matters involving theinternal control over financial reporting and its operation that we consider to be material weaknesses.
Member oft Member of:AMERICAN INSTITUTE OF SOCIETY OF LOUISIANACERTIFIED PUBLIC ACCOUNTANTS CERTIFIED PUBLIC ACCOUNTANTS
15
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Savoy Cancer Center, Inc.'s financialstatements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and materialeffect on the determination of financial statement amounts. However, providing an opinion on compliancewith 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 that are required to be reported underGovernment Auditing Standards.
This report is intended solely for the information and use of the Board of Directors, management,others within the organization and grant awarding agencies and is not intended to be and should not be usedby anyone other than these specified parties.
Kolder, Champagne, Slaven & Company, LLCCertified Public Accountants
Lafayette, LouisianaApril 19, 2006
16