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THE ST. BERNARD BATTERED WOMEN'S PROGRAM,INC.

INDEPENDENT AUDITOR'S REPORT AND REPORTSON INTERNAL CONTROL AND COMPLIANCE

Arabi, LA

For the Year Ended June 30, 2004

-port is w.h Jt' rSPnate Pyblic offi^iaIS The

Release Date

THE ST. BERNARD BATTERED WOMEN'S PROGAM, INC.

JUNE 30,2004

TABLE OF CONTENTS

FINANCIAL INFORMATION SECTION

Independent Auditor's Report 3-4

Statement of Financial Position 5

Statement of Activities and Changes in Net Assets 6-7

Statement of Cash Flows 8

Notes to the Financial Statements 9-13

SUPPLEMENTARY INFORMATION

Report on Compliance and Internal Control Over FinancialReporting Based on an Audit of Financial StatementsPerformed in Accordance With Government AuditingStandards 15-16

Schedule of Findings and Questioned Costs 17-19

Summary Schedule of Prior Audit Findings and Management Comments 20

Management Letter 21 -22

Management's Corrective Action Plan 23

Schedule of Functional Expenses by Program 24

EILEENSHANKLIN

ANDRUSCERTIFIED

PUBLICACCOUNTANT

A LIMITED LIABILITY

COMPANY

Member of theAmerican Instituteof Certified Public

Accountants

Member of theLouisiana Societyof Certified Public

Accountants

Mrs. Eileen Andrus >1632 English Colony Dr.La Place, LA 70068-2800 >

EMAIL:[email protected]

INDEPENDENT AUDITOR'S REPORT

To the Board of Directors ofThe St. Bernard Battered Women's ProgramP.O. Box 645Arabi, LA 70032

I have audited the aceompanying statement of financial position of the St.Bernard Battered Women's Program, Inc. (SBBWP) as of June 30, 2004 aslisted in the table of contents. These financial statements are theresponsibility of SBBWP's management. My responsibility is to express anopinion on these financial statements based on my audit.

I conducted my audit in accordance with auditing standards generallyaccepted in the United States and the standards applicable to financial auditscontained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States. Those standards require that I plan and performthe audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, ona test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as, evaluating theoverall financial statement presentation. I believe that my audit provides areasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of the St. Bernard Battered Women'sProgram, Inc. as of June 30, 2004 and the changes in net assets and cashflows for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.

In accordance with Government Auditing Standards, \ have also issued myreport dated December 13, 2004 on my consideration of the St. BernardBattered Women's Program's internal control over financial reporting and mytests of its compliance with certain provisions of laws, regulations, contractsand grants. That report is an integral part of an audit performed in accordancewith Government Auditing Standards and should be read in conjunction withthis report in considering the results of my audit.

My audit was performed for the purpose of forming an opinion on the financial statements of the St,Bernard Battered Women's Program, Inc. The accompanying supplementary information ispresented for purposes of additional analysis, and is not a required part of the basic financialstatements and, in my opinion, is fairly stated, in all material respects, in relation to the basicfinancial statements taken as a whole.

f^r t* +*r w '*

Eileen Shanklin AndrusCERTIFIED PUBLIC ACCOUNTANTA LIMITED LIABILITY COMPANY

December 13,2004

ST. BERNARD BATTERED WOMEN'S PROGRAM, INC.

STATEMENT OF FINANCIAL POSITION

JUNE 30, 2004

ASSETS

Current AssetsCashGrant ReceivableDue From OthersOther Current AssetsPrepaid Insurance

Total Current Assets

98,90259,838

5,094

1,0691.248

166.151

Fixed AssetsFurniture and Fixtures 121,724Accumulated Depreciation f97.453)

Total Fixed Assets, Net 24.271

Total Assets $

LIABILITIES AND NET ASSETS

Current LiabilitiesAccounts Payable $ 1.591

Total Current Liabilities 1.591

Net AssetsUnrestrictedTemporarily Restricted

Total Net Assets

Total Liabilities andNet Assets

SEE ACCOMPANYING NOTES.

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ST. BERNARD BATTERED WOMEN'S PROGRAM, INC.

STATEMENT OF CASH FLOWS

JUNE 30, 2004

Cash flows from Operating ActiviitesIncrease in Net: Assets

Add: Depreciation Expense

(Increase) Decrease in AssetsIncrease in Grant ReceivablesDecrease in Due From Others

82,05714,362

(13,653)140

Increase (Decrease) in Liabilities:Increase in Accounts PayableDecrease in WooHedge TrustDecrease in Other Liabilities

Net Cash Provided (Used) byOperating Activities

Cash Flows from Investing ActivitiesPurchase of Vehicles & Equipment

Net Cash Provided (Used)in Investing Activities

Cash Flows from Financing Activities

(721)(39,250)(1,6151

41.320

(29,4881

(29.4881

Net Cash Provided (Used)by Financing Activities --

Net Increase (Decrease)in Cash andCash Equivalents —

Cash and Cash Equivalents atBeginning of Year 87rQ70

Cash and Cash Equivalents atEnd of Year $ 98,902

Note: a)Noncash transactions totaling $ 39,250 was obtainedfrom the forgivenss of debt from a loan from theMarion Woo11edge Trust.

SEE ACCOMPANYING NOTES.

THE ST. BERNARD BATTERED WOMEN'S PROGRAM, INC.

NOTES TO THE FINANCIAL STATEMENTS


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Organization

The St. Bernard Battered Women's Program, Inc. (SBBWP) is a not-for-profit "domesticviolence program, which provides assistance through counseling and advocacy, bothemergency and non-emergency to battered persons and their children.

SBBWP operates the following programs:

Office of Women's Services Family Violence program provides federal, state and localfunding to the program for the operating needs of the administrative program.

Violence Against Women Crime Victim's Assistance program provides funding forsalaries of the program

Louisiana Commission on Law Enforcement provides funding for education to thecommunity about abuse and legal advocacy to the community for the victims and theirchildren.

Emergency Shelter Grant-provides funding to run an emergency shelter for victims andtheir children.

Office of Women's Services Temporary Assistance to Needy Families- provides federalfunding for the assistance of needy families and their children.

B. Principles

The financial statements of the SBBWP. Inc. have been prepared on the accrual basis ofaccounting in conformity with generally accepted accounting principles.




NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

C. Basis of Presentation

The SBBWP. Inc.'s financial statement presentation follows the recommendations of theFinancial Accounting Standards Board in its Statement of Financial Accounting Standards(SAFS) No. 117, Financial Statements ofNot-for-Profit Organizations. Under SFAS No.117, the organization is required to report information regarding its financial position andactivities according to three classes of net assets: unrestricted net assets, temporarilyrestricted net assets and permanently restricted net assets.

Unrestricted Net Assets - limited only by the broad limits resulting from the nature of theorganization, the environment in which it operates, and the purposes specified in its articlesof incorporation or bylaws and limits resulting from contractual agreements with suppliers,creditors and others entered into by the organization in the course of its business.

Temporarily Restricted Net Assets - assets whose restrictions lapse with the passage of time.

Permanently Restricted Net Assets - assets whose restrictions do not lapse with the passageof time.

Presently the SBBWP, Inc. has unrestricted and temporarily restricted net assets.

D. Contributions

Contributions are recognized when a donor makes a promise to give. Contributions thatare restricted by the donor are reported as increases in permanently or temporarilyrestricted net assets. Unrestricted net assets are recorded as the restrictions expire in thefiscal year in which the contributions are recognized,

E. Equipment and Furnishings

Equipment and furnishings are carried at cost. Depreciation is computed using the straight-line method over three years for vehicles, five years for furniture and equipment and tenyears for leasehold improvements. When assets are retired or otherwise disposed of, the costand related accumulated depreciation are removed from the accounts, and any resulting gainor loss is reflected in the statement of activity for the period. The cost of maintenance andrepairs is charged to expense as incurred; significant renewals and betterments arecapitalized. Deductions arc made of retirements resulting from renewals or betterments.

10




NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

F. Income Taxes

The SBBWP, Inc. is operating under Section 501 © (3) of the Internal Revenue Code and isgenerally exempt from federal, state and local income taxes. Accordingly, no provision forincome taxes is included in the financial statements. This nonprofit organization has beenclassified as an organization that is not a private foundation under Sec 509 (A).

G. Cash and Cash Equivalents

For purposes of the statement of cash flows, the SBBWP, Inc. considers all unrestricted cashand other highly liquid investments with initial maturities of three months or less to be cashequivalents.

At June 30, 2004 all of the SBBWP's cash balances were secured by Federal DepositaryInsurance ( FDIC).

H. Use of Estimates

The preparation of financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions that affect certainreported amounts and disclosures. Accordingly, actual results could differ from thoseestimates.

1. Annual and Sick Leave

SBBWP, Inc. accrues vacation on all full-t ime employees at a rate of two hours per payperiod (12 days annually) after the employee completes one full year of employment with theprogram. Sick leave is accrued at a rate of two hours per pay period for all full-timeemployees. Employees can carry up to 40 hours of sick leave to the following calendar year.

In the event of termination no leave is allowed to be carried over to the following year.

J. Asset Restrictions

SBBWP, Inc. has certain assets purchased with grant funds that are restricted as todisposition. The total amount of fixed assets recorded are limited by these restrictions.

11



For the Year Ended June 30,2004

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

j. Board Compensation

The board of directors of the SBBWP is a voluntary board; therefore, no compensationwas paid to any board member during the year ended June 30, 2004.

NOTE 2- GRANT RECEIVABLE

SBBWP, Inc. had the following amounts receivable from grants at June 30, 2004:

AMOUNTOffice of Women's Services $ 41, 827Louisiana Coalition Against Domestic Violence 13,723Emergency Shelter Grant 3,014Louisiana Commission on Law Enforcement 1.274

Total Receivables $ 59^38

NOTE 3 - PREPAID EXPENSES

The balance of $ 1,248 represents the SBBWP's prepayment of general liability, auto andproperty insurance.

NOTE 4- FURNITURE & FIXTURES

SBBWP's furniture and fixtures consist of the following:

Beginning Ending.Balance Additions _ Balance

Vehicles - $ 23,081 $23,081Equipment $49,122 6,407 53,222Furnishings 42,656 -- 42,656Leasehold

Improvements 1.765 -- 2.765Total $88.547 $ - 121.724

Less: Accumulated Depreciation (97.453)Net Fixed Assets $24,271.

Total depreciation expense equals $ 14,362 at June 30, 2004.

12




NOTE 5- NOTE PAYABLE

SBBWP's short-term obligations consist of the following:

Note payable to the Woolledge Trust at 4.00 % per annum,which was due August 22, 2002 was donated in full tothe SBBWP during 2004. $ ~

Total Note Payable $ ~

There was no accrued interest on this note at June 30, 2004.

NOTE 6- CONCENTRATIONS

The SBBWP, Inc. receives 61 % percent of its revenues from federal and state grantors.

NOTE 7- CONTINGENCIES

Amounts received or receivable from grantor agencies are subject to audit and adjustment bygrantor agencies, principally the Department of Health and Hospitals and TANF grants. Anydisallowed claims including amounts already collected, may constitute a liability of applicablefunds. The amount, if any, or expenditures which may be disallowed by the grantor cannot bedetermined at this time; although SBBWP, Inc. expects such amounts to be immaterial.

NOTE 8-NONCASH TRANSACTIONS

The SBBWP, Inc. has donated office space valued at $42,000 in these financial statements.

The use of the building can continue as long as the use remains as outlined the articles ofincorporation.

The Program also received forgiveness of debt totaling $ 39,250 in 2004 by theMarion Woolledge Trust. This donation is recorded as other revenue in these financialstatements.

13

SUPPLEMENTARY INFORMATION

14

EILEENSHANKLINANDRUSCERTIFIED

PUBLICACCOUNTANT

A LIMITED LIABILITYCOMPANY


Accountants


Accountants

Mrs. Eileen Andms1632 English Colony DrLa Place. LA 70068-2800


REPORT ON COMPLIANCE AND ON INTERNAL CONTROLOVER FINANCIAL REPORTING BASED ON AN AUDIT OFFINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITH GOVERNMENT AUDITING STANDARDS

To the Board of Directors ofThe St. Bernard Battered Women's Program, Inc.P.O. Box 645Arabi, LA 70032

I have audited the financial statements of the St. Bernard Battered Women'sProgram, Inc. (a nonprofit organization) (SBBWP) as of and for the yearended June 30,2004, and have issued my report thereon dated December 13,2004. I conducted my audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable tofinancial audits contained in Government Auditing Standards, issued by theComptroller General of the United States.

ComplianceAs part of obtaining reasonable assurance about whether the SBBWP'sfinancial statements are free of material misstatement, I performed tests of itscompliance with certain provisions of laws, regulations, contracts, and grants,noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts. However, providing anopinion on compliance with those provisions was not an objective of myaudit, and accordingly, I do not express such an opinion. The results of mytests disclosed instances of noncompliance that is required to be reportedunder Government Auditing Standards and which is described in theaccompanying schedule of findings and questioned costs as items # 04-01, #04-02 and # 04-03. ] also noted a certain immaterial instance ofnoncompliance, which 1 have reported to the management of the SBBWP,Inc. in a separate letter dated December 13, 2004.

Internal Control Over Financial Reporting[n planning and performing my audit, f considered the SBBWP's internalcontrol over financial reporting in order to determine my auditing proceduresfor the purpose of expressing my opinion on the financial statements and notto provide assurance on the internal control over financial reporting.However. 1 noted a certain matter involving internal control over financialreporting and its operation that I consider to be reportable conditions.Reportable conditions involve matters coming to my attention relating tosignificant deficiencies in the design or operation of the internal control overfinancial reporting that, in my judgment, could adversely affect the SBBWP'sability to record, process, summarize, and report financial data consistentwith the assertions of management in the financial statements.

15

These reportable conditions are described in the accompanying schedule of findings andquestioned costs as items # 04-01, # 04-02 and # 04-03.

A material weakness is a condition in which the design or operation of one or more of the internalcontrol components does not reduce to a relatively low level the risk that misstatements in amountsthat would be material in relation to the financial statements being audited may occur and not bedetected in a timely period by employees in the normal course of performing their assignedfunctions. My consideration of the internal control over financial reporting would not necessarilydisclose all matters in the internal control that might be reportable conditions and, accordingly,would not necessarily disclose all reportable conditions that are also considered to be materialweaknesses. However, of the reportable conditions disclosed in the schedule of findings, I consideritem # 04-01 to be a material weakness. I also noted a certain immaterial instance as noted in theattached management letter dated December 13, 2004.

This report is intended for the information of management, the Board of Directors of the St. BernardBattered Women's Program, Inc., the Legislative Auditor of the State of Louisiana, federal, state andlocal awarding agencies and pass-through agencies. This report is not intended to be and should notbe used by anyone other than these specified parties. However, under Louisiana Revised Statute24:513, this report is distributed by the Legislative Auditor as a public document.

Eileen Shanklin AndrusCERTIFIED PUBLIC ACCOUNTANTA LIMITED LIABILITY COMPANY

December 13,2004


Schedule of Findings and Questioned Costs


Section 1 Summary of Auditor's Reports

Financial Statements

Type of auditor's report issued = unqualified

Type of auditor's report issued on compliance and internal control = qualified.

Internal Control over financial reporting:

Material Weakness(es) identified X Yes No

Reportable Condition(s) identifiedthat is not considered to bematerial weaknesses X Yes none reported

Noncompliance material to financialStatements noted? X Yes No

Federal AwardsInternal Control over major programs: NOT APPLICABLE

Material weakness(es) identified? Yes No

Reportable condition(s) identifiedthat is not considered to be amaterial weakness(es). Yes none reported

Type of auditor's report issued on compliance for major programs = NOT APPLICABLE.

Any audit findings disclosed thatAre required to be reportedIn accordance with section510 (a) of Circular A-133? Yes No

17




Section 1 Summary of Auditor's Reports

Identification of major programs: NOT APPLICABLE

CFDA Numberfs) Name of Federal Program or Cluster

Dollar threshold used to distinguishBetween type A and type B programs: S 500,000

Auditee qualified as low-risk auditee? Yes No

Section II Financial Statement Findings and Questioned Costs

# 04-01 Internal Control Over Bingo Cash

Condition: During the course of my inquiring about internal controls, i noted that deposits ofcash collected during the SBBWP fund raising efforts were kept in an unlocked suitcase (at timesseveral days) prior to being deposited with the Program's fiscal agent.

Cause: This condition is caused by inadequate controls over cash collected at the Bingo Hall.

Effect: This condition has the effect of weakening controls in the cash and accounting function.

Criteria: A good system of internal control over cash would have deposits made on a systematicand regular basis. Un-deposited cash should be safeguarded in a safe or some other securelocation. Deposits should be made as soon as practical, preferably on the same day collected, ifpossible.

Questioned Costs: -0-

Recommendation: I recommend that controls be established to safeguard Bingo cash and topromptly deposit and reconcile all cash collected as soon as practical.




Section II Financial Statement Findings and Questioned Costs

# 04-02 Full Accrual AccountingCondition: During my testing I noted that current receivable balances and current payablebalances were not being recorded on a periodic basis in accordance with full-accrual accounting.

Cause: This condition is caused by oversight at the SBBWP.

Effect: This condition has the effect of causing the interim financial statements to be misleading.

Criteria: A good system of internal control over financial reporting would include the recordingand reversing of receivables and payablcs on a periodic basis in accordance with GenerallyAccepted Accounting Principles (GAAP).

Questioned Costs: None.

Recommendation: I recommend that the contractual CPA be advised to book and reverse allreceivables and payables as warranted by GAAP.

#04-03 Timely Submission of Audited Financial Statements

Condition: 1 noted that the SBBWP failed to submit its audit report within the statutory deadlineof six months.

Cause: This condition was caused by delays in getting needed information from the ExecutiveDirector and the Program's attorney. Additional delays were caused by a change in contractualCPAs and QuickBooks versions.

Effect: This condition has the effect of putting the Program in non-compliance with State law.

Questioned Costs: None.

Recommendation: I recommend that in the future all needed confirmations and correspondencesbe provided to the auditor in a timely fashion to facilitate timely completion as required by Statelaw.

19


Summary Schedule of Prior Year Audit Findings and Management Comments


REPORTABLE CONDITIONS AND MATERIAL WEAKNESSES

# 02-01 Segregation of Duties — Resolved.# 03-01 Timely Preparation of Financial Statements ~ Unresolved.

MANAGEMENT LETTER COMMENTS

MGT. 03-1 Personnel Files - Resolved.MGT. 03-2 Client File Documentation = Resolved.

20

EILEENSHANKLIN

ANDRUSCERTIFIED

PUBLICACCOUNTANT

A LIMITED LIABILITYCOMPANY


Accountants


Accountants

Mrs. Eileen Andnis1632 English Colony Dr.La Place, LA 70068-2800


December 13,2004

Mrs. Gail GowlandThe St. Bernard Battered Women's Program, Inc.P.O. Box 645Arabi, LA 70032

I have audited the financial statements of the St. Bernard BatteredWomen's Program, Inc. (SBBWP) as of and for the year ended June 30,2004, and have issued my report thereon dated December 13, 2004.1conducted my audit in accordance with generally accepted auditingstandards and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of theUnited States.

As part of my examination, I have issued my report on the financialstatements dated June 30, 2004 and my report on internal control andcompliance with laws, regulations, and contracts dated June 30, 2004.In planning and performing my audit of the financial statements ofSBBWP. I considered its internal control in order to determine myauditing procedures for the purpose of expressing my opinion on thefinancial statements and not to provide assurance on internal control.

However, 1 noted a certain matter involving internal control and itsoperation that I consider to be important, but not significant enough to beconsidered a reportable condition under standards established by theAmerican Institute of Certified Public Accountants. Reportable conditionsinvolve matters coming to my attention relating to significant deficienciesin the design or operation of internal control that, in my judgment, couldadversely affect the ability to record, process, summarize and reportfinancial data consistent with the assertions of management in the financialstatements.

The following conditions were noted during the course of conductingSBBWP's audit for the year ended June 30, 2004.

# 04-01 Supporting Documentation for DisbursementsCondition: During the course of my testing cash disbursements I notedthat two of the forty disbursements tested did not have supportingdocumentation available.

Recommendation: I recommend that additional controls be established tomaintain all supporting SBBWP.

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These recommendations are meant as suggestions to improve and not to criticize management orthe administrative accounting staff.

Should you need any advice on how to resolve or apply the recommendations suggested, pleasedo not hesitate to call me at (985) 209-3067 or e-mail me at [email protected].

Sincerely,

Eileen S. AndrusCERTIFIED PUBLIC ACCOUNTANTA LIMITED LIABILITY COMPANY

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MANAGEMENT'S RESPONSES TO FINDINGS, AND MANAGEMENT LETTERCOMMENTS


REPORT ABLE CONDITIONS AND MATERIAL WEAKNESSES

# 04-01 Internal Control Over Bingo CashManagement's Response: Deposits are usually made in a timely manner; however, the cashdoes need better safeguarding. We wil l be purchasing one soon to safeguard the cash, as well as.backup discs for the computer and other important documents.

# 04-02 Full Accrual AccountingManagement's Response: Since management has been made aware of this recommendation, wewil l require the contractual accountant,CPA to book and reverse all receivables and payables.We realize this is conducive to having a more comprehensive financial view each month.

MANAGEMENT LETTER COMMENTS

MGT.# 04-01 Supporting Documentation for DisbursementsManagement's Response: These two disbursements, one of which is a phone b i l l , are isolatedincidents. The St. Bernard Battered Woman's Program. Inc. does have controls in placeproviding for the maintaining of supporting documentation. We wil l strengthen this control byperforming periodic reviews (in-house) to make sure that internal controls are being followedwithout exception.

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