rapides children's advocacy center, inc....rapides children's advocacy center notes to...

RAPIDES CHILDREN'S ADVOCACY CENTER, INC.

Annual Financial ReportFor the Year Ended December 31, 20O7

Under provisions of state law, this report is g public -J ;:mdocument. A copy of the report has bsan submitted to ^ "; <the entity and other appropriate public officials. The is 1' areport is available for public inspection at the Baton o :2Rouge office of the Legislative Auditor and, where .^ ;Jappropriate, at the officepf the parish clerk of court.

Release Date

Table of Contents

Independent Auditors' Report 1

Statement of Financial Position 2

Statement of Activities 3

Statement of Functional Expenses .... 4

Statement of Cash Flows 5

Notes to Financial Statements 6-9

Report on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit ofFinancial Statements Performed in Accordance WithGovernment Auditing Standards 10 - 12

Schedule of Findings and Responses 13

Management's Summary Schedule of Prior Audit Finding 14

Additional InformationSchedule of TANF Revenue and Expenses 16

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PAYNE, MOORE & HERRINGTON, LLP

[miFIEDPUDUCACCOUNMSEstablished 1945

Independent Auditor's Report

Board of DirectorsRapides Children's Advocacy Center, Inc.

We have audited the accompanying statement of financial position of Rapides Children's AdvocacyCenter, Inc. (a nonprofit corporation) as of December 31, 2007, and the related statements of activities,functional expenses, and cash flows for the year then ended. These financial statements are theresponsibility of the Center's management. Our responsibility is to express an opinion on thesefinancial 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 AuditingStandards, issued by the Comptroller Genera) of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of the Rapides Children's Advocacy Center, Inc., as of December 31, 2007, and thechanges in its net assets and its cash flows for the year then ended in conformity with accountingprinciples generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated June 11,2008, on our consideration of Rapides Children's Advocacy Center, Inc.'s internal control over financialreporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, andgrant agreements and other matters. The purpose of that report is to describe the scope of our testingof internal control over financial reporting and compliance and the results of that testing, and not toprovide an opinion on the internal control over financial reporting or on compliance. That report is anintegral part of an audit performed in accordance with Government Auditing Standards and importantfor assessing the results of our audit.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements takenas a whole. The schedule of TANF revenue and expenses on page 16 is presented for purposes ofadditional analysis and is not a required part of the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audit of the basic financial statements and, inour opinion, is fairly stated in all material respects in relation to the basic financial statements taken asa whole.

4Certified Public Accountants

June 11, 2008

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Rapides Children's Advocacy Center

Statement of Financial Position

December 31, 2007

Assets

Current assets:Cash and cash equivalentsReceivablesPrepaid expenses

Total current assets

791,385

231,066

3,925

1,026,376

Fixed assets, net of accumulated depreciationOther Assets

Total assets

158,721300

$ 1,185,397

Liabilities and Net Assets

Current liabilities:Accounts PayableOther current liabilities

Total current liabilities

9,4573,278

12,735

Net assets:Unrestricted net assets:

OperatingBoard designated - funding contingencies

Total unrestricted net assetsTemporarily restricted

Total net assets

Total liabilities and net assets

785,598300,000

1,085,59887,064

1,172,662

$ 1,185,397

The accompanying notes are integral part of the financial statements.

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Rapides Children's Advocacy Center

Statement of ActivitiesFor the Year Ended December 31, 2007

Revenue and Support:ContributionsGrantsCourt costState appropriationOther incomeNet assets released from restrictions

Total revenue and support

Functional expenses:Program services:

Forensic InterviewingCASA

Total program services

Supporting services:Management and GeneralFundraisino

Total supporting services

Total functional expenses

Increase (decrease) in net assets

Net assets - beginning of year

Net assets - end of year

TemporarilyUnrestricted Restricted

$ 63,801 $

26,750

83,033

119,69619,562

415,567

728,409

41,54520,898

62,443

596,585

I3l 824

953,774

427,091

(415,567)

,524

175,200

358,942

534,142

II 524

75,540

Total

63,801

453,841

83,033

119,696

19,562

739,933

175,200

358,942

534,142

41,545

20,898

62,443

596,585

143,348

$ 1,085,598 $ 87,064 $ 1,172,662


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Rapides Children's Advocacy CenterStatement of Cash FlowsFor the Year Ended December 31, 2007

Cash flows from operating activities:Change in net assets $ 143,348Adjustments to reconcile changes in net assets to net cash

provided (used) by operating activities:Depreciation 19,405Change in operating assets and liabilities:

(Increase) decrease in receivables (26,062)(Increase) decrease in prepaid expenses 1 1,322Increase (decrease) in accounts payable 4,367Increase (decrease) in other current liabilities (2,591)

Net cash provided (used) by operating activities 149,789

Cash flows from investing activities:Purchase of fixed assets (5,207)

Net cash provided (used) by investing activities (5,207)

Net increase (decrease) in cash and cash equivalents 144,582Cash and cash equivalents - beginning of year 646,803

Cash and cash equivalents - end of year $ 791,385

Supplemental Data:For the year ended December 31, 2007, there were no cash payments for interest or incometaxes. Furthermore, there were no significant noncash investing or financing activities during theyear.


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RAPIDES CHILDREN'S ADVOCACY CENTER

Notes to Financial StatementsDecember 31, 20O7

Note I - Summary of Significant Accounting Policies:

Organization:

The Rapides Children's Advocacy Center (the Center) is a non profit organization which utilizes aninteragency approach to the investigation, prosecution and treatment of child sexual and physicalabuse. The mission of the Center is to lessen the trauma experienced by child abuse victims asallegations are investigated and to provide support for the child victim in any resulting proceedingwithin the criminal justice system. Program activities conducted in pursuit of this mission aredescribed as follows:

Forensic Interviewing - Child protection and law enforcement agencies refer childrento the Center for confidential interviews regarding reports of child abuse. Theinterviews are conducted by specially trained professionals in a homelike setting.Interviews are recorded on videotape while making every effort to help the child feelsafe, comfortable and supported.

CASA - Court Appointed Special Advocates (CASAs) are trained communityvolunteers appointed by the judge to represent the interests of abused and neglectedchildren. CASAs conduct an independent investigation for the purposes of providingthe court with objective recommendations regarding the child's best interest. TheCenter recruits, screens and trains CASA volunteers.

Basis of Presentation:

The financial statements have been prepared on the accrual basis in conformity with generallyaccepted accounting principles. Preparation of financial statements in conformity with generallyaccepted accounting principles requires certain estimates and assumptions that affect reportedamounts and disclosures. Accordingly, actual results could differ from those estimates.

As required by Statement of Financial Accounting Standards (SFAS) No. 117, net assets andactivities are classified in the following manner:

Unrestricted - Net assets that are not subject to significant donor imposed restrictions.

Temporarily Restricted - Net assets subject to certain donor imposed restrictions andrestrictions imposed by grant agreements. Temporary restrictions apply when therestriction can be fulfilled by actions of the Center or by the passage of time.

Permanently Restricted - Net assets subject to donor imposed restrictions that requirethese assets to be maintained in a perpetual manner.

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Notes to Financial StatementsDecember 31, 2007

Income Taxes:

The Center is a not-for-profit corporation that is exempt from income taxes under Section 50l(c)(3)of the Internal Revenue Code. Furthermore, the Center is not classified as a "private foundation" bythe Internal Revenue Service.

Promises to Give:

As required by generally accepted accounting principles, unconditional promises to give are reportedas revenue when the promise is made. Conditional promises to give are recognized as revenue whenthe necessary conditions are fulfilled.

Cash and Cash Equivalents:

Cash and cash equivalents represent bank deposits and highly liquid investments with originalmaturities of three months or less.

Fixed Assets:Fixed assets are recorded at cost on the date of acquisition. Additions and betterments of $1,000 ormore are capitalized, while maintenance and repairs that do not improve or extend the useful lives ofthe respective assets are expensed currently. Donated property is recorded at the estimated fair valueupon receipt. Depreciation is computed using accelerated methods over estimated useful livesranging from 5 to 39 years.

Assets donated with explicit restrictions regarding their use and contributions of cash earmarked toacquire property and equipment are reported as temporarily restricted support. Absent donorstipulations regarding how long those donated assets must be maintained, the Center reportsexpirations of donor restrictions when the donated or acquired assets are placed in service. TheCenter reclassifies temporarily restricted net assets to unrestricted net assets at that time.

Donated Services:Volunteers are utilized extensively for both program and supporting services. Contributed servicesare recognized if the services require specialized skills and the Center would be required to purchasethese services if donated services were not available. None of the contributed services receivedduring the year ended December 31, 2007 were recognized as revenue.

Expense Allocation:The costs of providing various programs and other activities have been summarized on a functionalbasis in the Statement of Activities and in the Statement of Functional Expenses. Accordingly,certain costs have been allocated among the programs and supporting services benefited.

Compensated Absences:

Employees are allowed to accumulate and carry over a maximum of 40 hours of vacation time peryear. Actual amounts carried over were immaterial at December 31, 2007.

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Notes to Financial StatementsDecember 31, 2007

Advertising:The Center's advertising programs are not considered to have any significant benefits for futureperiods. Accordingly, advertising costs are expensed as incurred.

Note 2 - Cash and Equivalents

Amounts on deposit in financial institutions and brokerage firms exceed available FDIC and SIPCcoverage by $410,730.

Note 3 - Receivables:

Grants and pledges receivable consisted entirely of unconditional promises to give. Details regardingthe amount reported on the Statement of Financial Position are provided as follows:

Grants and pledges $ 157,692Court costs 73,374Total $ 231,066

Receivables are considered entirely collectible and there is no allowance for doubtful accounts.Furthermore, the entire balance is considered collectible within one year.

Note 4 - Fixed Assets:

Details regarding fixed assets utilized by the Center are presented as follows:

Office building $ 135,888Furniture, fixtures and equipment 154,793Leasehold improvements 88,811

Total fixed assets 379,492Accumulated depreciation (220,771)

Fixed assets, net of accumulated depreciation $ 158,721

Note 5 - Temporarily Restricted Net Assets:

The unexpended portion of various grants has been classified as temporarily restricted due torestrictions imposed by various grantors.

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RAP IDES CHILDREN'S ADVOCACY CENTER

Notes to Financial Statements

December 31, 2007

Note 6 - Conditional Promises to Give:

Conditional promises to give are presented as follows:

TANF (Temporary Assistance for Needy Families) $ 204,810State of Louisiana (Line Item Appropriation) 58,703

Total $263,513

Note 7 - Board Designated Funds:

The Rapides Children's Advocacy Center depends on revenue from a variety of federal and statesources to sustain its operations. Due to uncertainty inherent in the funding process, there is apossibility that one or more sources of funds will not be available in future years. In order to preparefor the potential loss of revenue, the Board has designated $300,000 in cash and equivalents as areserve for funding contingencies. If necessary, this reserve will provide money to sustain operationsuntil new funding sources can be developed.

Note 8 - Contingent Liabilities:

Under the terms of federal and state grants, periodic audits are required and certain costs may bequestioned as not being appropriate expenditures under the terms of the grants. Any disallowedclaims, including amounts already collected, could become a liability of the Rapides Children'sAdvocacy Center. The Center's management believes disallowances, if any, will not be material.

Note 9 - Leases:

The Rapides Children's Advocacy Center entered into a lease agreement to rent an office facilitylocated at 1506 Albert Street, Alexandria., Louisiana to conduct the forensic interviewing services.The term of the lease agreement covers the period from January 1, 1996 to December 31, 2013.Under this arrangement, the Center agrees to operate the Center as a Children's Advocacy Center forthe benefit of the community, pay for any remodeling, and pay an annual rental of $1 due at thebeginning of the lease. The Rapides Children's Advocacy Center made leasehold improvements tothis facility in the amount of $88,812. The majority of these improvements were made at thebeginning of the lease period. These improvements are being depreciated over their useful lives.

Note 10 - Retirement Plan:

The Rapides Children's Advocacy Center provides the option for employees to participate in a403(b) tax deferred retirement plan. An employee is immediately eligible to participate in this plan.Participants are allowed to make individual voluntary contributions to the plan through salarydeferral. The maximum allowable contributions are regulated by the Internal Revenue Serviceregulations. The Center does not make any matching or discretionary retirement plan contributions.

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Report on Internal Control Over FinancialReporting and on Compliance and Other Matters Based

on an Audit of Financial Statements Performed inAccordance with Government Auditing Standards

10


[ERllFIEDPUBilCACCOUNMSEstablished 1945

Report on Internal Control Over FinancialReporting and on Compliance and Other Matters Based

on an Audit of Financial Statements Performed inAccordance with Government Auditing Standards


We have audited the financial statements of Rapides Children's Advocacy Center, Inc. (a nonprofitcorporation), as of and for the year ended December 31, 2007, and have issued our report thereondated July 11, 2008. We conducted our audit in accordance with auditing standards generally acceptedin the United States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the Rapides Children's Advocacy Center, Inc.'sinternal control over financial reporting as a basis for designing our auditing procedures for the purposeof expressing our opinion on the financial statements, but not for the purpose of expressing an opinionon the effectiveness of the Center's internal control over financial reporting. Accordingly, we do notexpress an opinion on the effectiveness of the Center's internal control over financial reporting.

A control deficiency exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent or detectmisstatements on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the Center's ability to initiate, authorize, record, process, orreport financial data reliably in accordance with generally accepted accounting principles, such thatthere is more than a remote likelihood that a misstatement of the Center's financial statements that ismore than inconsequential will not be prevented or detected by the Center's internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results inmore than a remote likelihood that a material misstatement of the financial statements will not beprevented or detected by the Center's internal control.

Our consideration of internal control over financial reporting was for the limited purpose described in thefirst paragraph of this section and would not necessarily identify all deficiencies in internal control thatmight be significant deficiencies or material weaknesses. We did not identify any deficiencies ininternal control over financial reporting that we consider to be material weaknesses, as defined above.

P.A. ID1HTNJVIUIU.P1 JAMES y™,[.Pl

ERNESIF SASSER, [.P.A. REBECCA B. MORRIS. C.PI CINDY I HUMPHRIES. [.PIROIEIU. LITTON, C.PI NIUAEU.JIIIEAI.C.PI

H. FRED mm. C.PI

11<*>

P.O. Box woo • ALEXANDRIA, u mis-443- lB83 • FAX: Oil) 443-?5l5



Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Center's financial statements are free ofmaterial 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 onthe determination of financial statement amounts. However, providing an opinion on compliance withthose 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 tobe reported under Government Auditing Standards.

This report is intended solely for the information and use of the Louisiana Legislative Auditor, federalawarding agencies, pass-through entities, and management and is not intended to be and should notbe used by anyone other than these specified parties. However, under Louisiana Revised Statute21:513, this report is in fact a public document.

0r i [liAM^Lj LLP(j )Certified Public Accountants

June 11, 2008

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Rapides Children's Advocacy Center, Inc.Schedule of Findings and Responses

Year Ended December 31, 2007

Section I - Summary of Auditor's Results

Financial Statements

Type of auditor's report issued:

Internal control over financial reporting:

Material weakness(es) identified?

Control deficiency identifiednot considered to be a materialweakness?

Noncompliance material to financialstatements noted?

Management's Corrective Action Plan

Management's Summary Schedule of PriorAudit Finding

Memorandum of Other CommentsAnd Recommendations

Unqualified

Yes

Yes

Yes

Not applicable

See attached

Federal Awards

Section II - Financial Statement Findings

Not applicable.

Section III - Federal Award Findings and Questioned Costs

Not applicable.

None issued

Not applicable

No

None reported

No

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Rapides Children's Advocacy Center, Inc.Management's Summary Schedule of Prior Audit Finding

Year Ended December 31, 2007

Finding 2006-01 Record Keeping of Prepaid Expenses

Condition: The Rapides Children's Advocacy Center understated net assets at the beginning of theyear by recording advertising expenses prior to the year the expense was incurred. During our auditwork, we noted $11,060 of prepaid advertising expenses that had been erroneously expensed in a prioryear.

Current Status: Resolved.

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Additional Information

15

Rapides Children's Advocacy Center, Inc.

Schedule of TANF Revenue and ExpensesFor the Year Ended December 31,2007

Schedule 1

TANF RevenueGrant revenue $ 266,132

TANF ExpensesSalaries 163,951Benefits and payroll taxes 23,418Professional services

Advertising 38,100Computer/ Network/ Web 3,968Membership 200

Operating ExpensesAlarm monitoring 240Equipment maintenance 495Insurance 6,716Telephone 7,389Postage 1,845Utilities 5,784

Travel 5,361Training 4,771Supplies 3,229Printing/ copying 665

Total TANF Expenses 266,132

Excess Grant Revenue over Expenses _$ -

See independent auditor's report.

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