the extra mile, region iv, inc....the extra mile, region iv, inc. financial statements and...

The Extra Mile, Region IV, Inc.

FINANCIAL STATEMENTS ANDAUDITOR'S REPORT

June 30,2006

Under provisions of state law, this report is a publicdocument, Acopy 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 3-4

Financial Statements:

Statement of Financial Position 5

Statement of Activities 6

Statement of Functional Expenses 7

Statement of Cash Flows 8

Notes to Financial Statements 9-12

Independent Auditors* Report on Compliance and InternalControl over Financial Reporting Based on an Audit ofFinancial Statements in Accordance with GovernmentAuditing Standards 13-14

Independent Auditors' Report on Compliance withRequirements Applicable to Each Major ProgramAnd Internal Control over Compliance in AccordanceWith OMB Circular A-133 15-16

Schedule of Findings and Questioned Costs 17

Supplementary information:

Schedule of Expenditures of Federal Awards 18

Stulb & Associates, APACCertifie

James E Stulb, C.PAKristine S> Carter, C.P.A.

INDEPENDENT AUDITOR'S REPORT

To the Board of DirectorsThe Extra Mile, Region IV, Inc.Lafayette, Louisiana

We have audited the accompanying statement of financial position of The Extra Mile,Region IV, Inc. (a nonprofit organization) as of June 30, 2006, and the related statementsof activities, functional expenses, and cash flows for the year then ended. These financialstatements are the responsibility of the Organization's management. Our responsibility isto express an opinion on these financial statements based on our audit. The prior yearsummarized comparative information has been derived from the Organization's 2005financial statements and in our report dated October 31, 2005, we expressed anunqualified opinion.

We conducted our audit in accordance with auditing standards generally accepted hi theUnited States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accountingprinciples used and the significant estimates made by management, as well as evaluatingthe overall financial statement presentation. We believe that our audit provides areasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all materialrespects the financial position of The Extra Mile, Region IV, Inc., as of June 30, 2006,and the changes in its net assets and its cash flows for the year then ended in conformitywith accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report datedSeptember 13, 2006, on our consideration of The Extra Mile, Region IV, Inc.'s internalcontrol over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be read inconjunction with this report in considering the results of our audit.

Our audit was performed for the purpose of forming an opinion on the basic financialstatements of The Extra Mile, Region IV, Inc. taken as a whole. The accompanyingschedule of expenditures of federal awards is presented for purposes of additionalanalysis as required by U.S. Office of Management and Budget Circular A-l 33, "Audits

Member A1CPA • Member LCPAMember PCPS/The AICPA Alliance for CPA Firms

800 Ryan Street • Suite 200 / P.O. Box 1117 • Lake Charles, Louisiana 70602(337)494-1240 • (337) 494-1040 Fax

of State, Local Governments, and Non-Profit Organizations," and is not a required part ofthe basic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in our opinion, isfairly stated, in all material respects, in relation to the basic financial statements taken asa whole.

September 13,2006

Stuib & Associates


STATEMENT OF FINANCIAL POSITION

June 30,2006 and 2005

ASSETS

CURRENT ASSETS

Cash and cash equivalentsAccounts receivableGrants and contractsOther

Prepaid postagePrepaid insurance

Total Current Assets

PROPERTY AND EQUIPMENT, at costFurniture and equipmentLeasehold improvements

Less: Accumulated Depreciation

Net Property and Equipment

2006

124,651.01

168,805.15415.14

1,174.6128,450.29

323,496.20

136,678.6312,985.00

(91,178.97)

58,484.66

2005

$ 138,652.69

157,348.31175.68

26,955.90323,132.58

117,008.2312,985.00

(81,152.97)

48,840.26

TOTAL ASSETS $ 381.980.86 $ 371.972.84

CURRENT LIABILITIESAccounts payableAccrued liabilities

Total Current Liabilities

14,582.334,024.02

18,606.35

13,305.183,737.27

17,042.45

NET ASSETSUnrestrictedTemporarily Restricted

Total Net Assets

TOTAL LIABILITIES ANDNET ASSETS

191,135.33172,239.18

363,374.51

$ 381.980.86

193,922.08161,008.31

354,930.39

371.972.84

See notes to the financial statements5

The Extra Mile, Region IV, Inc.STATEMENT OF ACTIVITIESFor the Year Ended June 30,2006

With Comparative Totals for the Year Ended 2005

UnrestrictedTemporarily

RestrictedTotal

2006 2005SUPPORT AND REVENUESupport

Grants and contractsDonationsDonated materials and serviceOtherNet assets released from restriction

RevenueInterest income

TOTAL SUPPORT AND REVENUE

EXPENSESFunctional expenses

Program serviceAdministrative

TOTAL EXPENSES

Change in Net AssetsNet Assets at Beginning of YearNet Assets at End of Year

$ 1,039,495.17 $ 1,039,495.17 $ 1,110,280.6921,615.79 21,615.79 48,776.70

219,963.90 219,963.90 256,074.606,607.00 6,607.00 10,582.25

1,276,450.99 (1,276,450.99)1,276,450.99

4,157.77

1,280,608.76

1,180,824.49102,571.02

1,283,395.51

(2,786.75)193,922.08

$ 191.135.33 $

11,230.87

11,230.87

_

11,230.87161,008.31172.239.18 $

1,287,681.86

4,157.77

1,291,839.63

1,180,824.49102,571.02

1,283,395.51

8,444.12354,930.39363.374.51 $

1,425,714.24

2,800.57

1,428,514.81

1,438,107.93

1,438,107.93

(9,593.12)378,200.09368.606.97


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The Extra Mile, Region IV, Inc.STATEMENTS OF CASH FLOWS

For the Year Ended June 30,2006 and 2005

CASH FLOWS FROM OPERATING ACTIVITIES

Change in Net AssetsAdjustments to reconcile change in Net Assets:DepreciationDecrease (Increase) hi operating assets:

Accounts ReceivableGrants and contractsPrepaid expensesOther

Increase (Decrease) in operating liabilities:Accounts PayableAccrued Liabilities

Total AdjustmentsNet Cash Provided By Operating Activities

CASH FLOWS FROM INVESTING ACTIVITIESPurchases of Property & Equipment

Net Cash Used By Investing Activities

2006

$ 8,444.12

10,026.00

5,668.72

(19.670.401(19,670.40)

2005

$ (9,593.12)

10,668.00

(11,456.84)(2,669.00)(239.46)

1,277.15286.75

f2.775.40)

9,535.87(7,263.10)533.44

1,239.69145.26

14,859.165,266.04

(6,034.551(6,034.55)

NET DECREASE IN CASH AND CASH EQUIVALENTS (14,001.68)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 138,652.69

CASH AND CASH EQUIVALENTS AT END OF YEAR S 124.651.01

(768.51)

139,421.20

$ 138.652.69



NOTES TO FINANCIAL STATEMENTS

June 30,2006

NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies of The Extra Mile, Region IV, Inc. (TheExtra Mile) is presented to assist in understanding The Extra Mile's financial statements.

Nature of Activities

The Organization is a nonprofit, community-based program governed by a volunteerboard of directors. The Organization administers several programs for the benefit ofpersons with mental health, retardation, and/or development disabilities, substance abuseproblems and families involved with the child welfare system. Its activities cover theParishes of St. Landry, St. Mary, St. Martin, Lafayette, Iberia, Vennillion, Acadia, andEvangeline.

Basis of Accounting

The accompanying financial statements presented herein have been prepared on theaccrual basis in accordance with generally accepted accounting principles.

Cash Equivalents

Cash equivalents consist of short-term, highly liquid investments, which are readilyconvertible into cash within ninety (90) days of purchase.

Support and Expenses

The Extra Mile receives substantially all its revenues from contracts with Federal, State,and Parish agencies. Contract revenues, in the case of reimbursement contracts, arerecognized as the expense for the contract is incurred. Other revenues are recognized asearned.

Expenses are recorded as incurred in accordance with the accrual basis of accounting.

Financial Statement Presentation

The Organization has adopted Statement of Financial Accounting Standards (SFAS) No.117, "Financial Statements of Not-for-Profit Organizations." Under SFAS No. 117, theOrganization 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. As permitted by the statement,the Organization does not use fund accounting.



June 30, 2006

Support and revenue

All support is considered to be available for unrestricted use unless specifically restrictedby the donor. Amounts received that are designated for future periods or restricted by thedonor for specific purposes are reported as temporarily restricted or permanentlyrestricted support that increases those net asset classes. When a temporary restrictionexpires, temporarily restricted net assets are reclassified to unrestricted net assets andreported in the statement of activities as net assets released from restrictions.

Income Taxes

The Organization is a not-for-profit organization that is exempt from income taxes underSection 501(C) (3) of the Internal Revenue Code and therefore has made no provision forfederal income taxes in the accompanying financial statements. In addition, The ExtraMile has been determined by the Internal Revenue Service not to be a "privatefoundation" within the meaning of Section 509(a) of the Internal Revenue Code. Therewas no unrelated business income for the year ended June 30,2006.

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.

Property and Equipment

The Organization capitalizes all expenditures in excess of $500 for property andequipment at cost, or if donated, at the approximate fair value at the date of donation.Depreciation is provided for in an amount sufficient to relate the cost of depreciableassets to operations over their estimated service lives on the straight-line basis.Depreciation expense for the year ended June 30, 2006 was $10,026.

NOTE B GRANTS AND CONTRACTS RECEIVABLE

Grants and contracts receivable represents amounts due from various Federal, State, andParish agencies and are deemed to be fully collectible by management.

NOTE C NET ASSETS RELEASED FROM RESTRICTIONS

Net assets were released from donor/grantor restrictions by incurring expenses satisfyingthe restricted purposes or by occurrence of other events specified by donors/grantors.Total amount released from restrictions during the year was $1,276,451.

10



June 30,2006

NOTE D DONATED MATERIALS AND SERVICES

Volunteers have made contributions of their time to The Extra Mile. The value of thiscontributed time is not reflected in these statements since it is not susceptible to objectivemeasurement or valuation.

The Extra Mile receives donations of food, clothing, and supplies. Managementestimates the value of these donations to be $219,964. These donations are recorded ascontributions with the corresponding charge to donated materials.

NOTE E FUNCTIONAL ALLOCATION OF EXPENSES

The costs of providing the various programs and other activities have been summarizedon a program basis in the statement of activities. This requires the allocation of certaincosts between program and supporting services based on estimates made by management.

NOTE F OPERATING LEASES

The Organization leases space for offices and programs services under various leasingarrangements. Only one rental agreement had an expiration date after June 30, 2006.Minimum rentals, for non-cancelable leases until expiration, are as follows:

Fiscal year ending June 30, 2007 $ 45,000June 30,2008 45,000June 30,2009 45,000June 30,2010 45,000June 30, 2011 37,500

Rent expense for the year ended June 30,2006 was $45,522.

NOTE G CONCENTRATION OF CREDIT RISK

The Organization maintains its cash accounts in commercial banks and a financialinstitution. Accounts at the commercial banks are insured by the Federal DepositInsurance Corporation up to $100,000. Cash equivalents maintained by the financialinstitution are insured by Securities Investor Protection Corporation.

NOTE H RISKS AND UNCERTAINTIES

The Organization receives a substantial amount of its support from governmentalagencies. A significant reduction in this support, if it were to occur, would affect theOrganization's programs and activities.

11



June 30,2006

NOTE I RETIREMENT PLAN

During the year ended June 30, 2006 the Organization made available to eligibleemployees the opportunity to participate in a 403(b) tax deferred annuity retirement plan.The Organization also contributes 3% of salaries to the plan for the benefit of the eligibleemployees. The total contribution for the year ended was $8,271.

NOTE J PRIOR PERIOD INFORMATION

The financial statements include certain prior year summarized comparative informationin total. Such information does not include sufficient detail to constitute a presentation inconformity with generally accepted accounting principles. Accordingly, suchinformation should be read in conjunction with the Organization's financial statementsfor the year ended June 30, 2005, from which the summarized information was derived.

12

Stulb & Associates, APACCertified Public

James F. Stulb, C.P.A.Kristine S. Carter, C.P.A.

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ONINTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON

AN AUDIT OF FINANCIAL STATEMENTS PERFORMED INACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS


We have audited the financial statements of The Extra Mile, Region IV, Inc. (a nonprofitorganization) as of and for the year ended June 30, 2006, and have issued our reportthereon, dated September 13, 2006. We conducted our audit in accordance with auditingstandards generally accepted in the United States of America and the standards applicableto financial audits contained in Government Auditing Standards issued by theComptroller General of the United States.

Compliance

As part of obtaining reasonable assurance about whether The Extra Mile, Region IV,Inc.'s financial statements are free of material misstatement, we performed tests of itscompliance with certain provisions of law, regulations, contracts, and grants,noncompliance with which could have a direct and material effect on the determinationof financial statement amounts. However, providing an opinion on compliance with thoseprovisions was not an objective of our audit, and accordingly, we do not express such anopinion. The results of our tests disclosed no instances of noncompliance that arerequired to be reported under Government Auditing Standards.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered The Extra Mile, Region IV, Inc.'sinternal control over financial reporting in order to determine our auditing procedures forthe purpose of expressing our opinion on the financial statements and not to provideassurance on the internal control over financial reporting. Our consideration of theinternal control over financial reporting would not necessarily disclose all matters in theinternal control over financial reporting that might be material weaknesses. A materialweakness 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 misstatementsin amounts what would be material in relation to the financial statements being auditedmay occur and not be detected within a timely period by employees in the normal courseof performing their assigned functions.

Member AICPA • Member LCPAMember PCPS/Thc AICPA Alliance for CPA Firms

800 Ryan Street • Suite 200 / P.O. Box 1117 • Lake Charles, Louisiana 70602(337)494-1240 * (337) 494-1040 Fax

We noted no matters involving the internal control over financial reporting and itsoperation that we consider to be material weaknesses.

This report is intended for the information of the Board of Directors and Management ofThe Extra Mile, Region IV, Inc. and federal awarding agencies and pass-through entitiesand is not intended to be and should not be used by anyone other than these specifiedparties.

September 13,2006

Stulb & Associates

Stulb & Associates, APACCertified Public Ac

James E Stulb, CP.A.Kristine S. Carter, C.PA

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTSAPPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL

OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133


Compliance

We have audited the compliance of The Extra Mile, Region IV, Inc. (a nonprofitorganization) with the types of compliance requirements described in the "U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement" that areapplicable to each of its major federal programs for the year ended June 30, 2006. TheExtra Mile's major federal programs are identified in the summary of auditor's resultssection of the accompanying schedule of findings and questioned costs. Compliance withthe requirements of laws, regulations, contracts, and grants applicable to each of its majorfederal programs is the responsibility of The Extra Mile's management. Ourresponsibility is to express an opinion on The Extra Mile's compliance based on ouraudit.

We conducted our audit of compliance in accordance with auditing standards generallyaccepted in the United States of America; the standards applicable to financial auditscontained in Government Auditing Standards, issued by the comptroller General of theUnited States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Proflt Organizations. Those standards and OMB Circular A-133 require that we plan andperform the audit to obtain reasonable assurance about whether noncompliance with thetypes of compliance requirements referred to above that could have a direct and materialeffect on a major federal program occurred. An audit includes examining, on a test basis,evidence about The Extra Mile's compliance with those requirements and performingsuch other procedures, as we considered necessary in the circumstances. We believe thatour audit provides a reasonable basis for our opinion. Our audit does not provide a legaldetermination of The Extra Mile's compliance with those requirements.

In our opinion, The Extra Mile complied, in all material respects, with the requirementsreferred to above that are applicable to each of its major federal programs for the yearended June 30,2006.

Internal Control Over Compliance

Management of The Extra Mile is responsible for establishing and maintaining effectiveinternal control over compliance with the requirements of laws, regulations, contracts,and grants applicable to federal programs. In planning and performing our audit, we

Member A1CPA • Member LCPAMember PCPS/The A1CPA Alliance for CPA Firms

800 Ryan Street • Suite 200 / P.O. Box 1117 • Lake Charles, Louisiana 70602(337)494-1240 • (337) 494-1040 Fax

considered The Extra Mile's internal control over compliance with requirements thatcould have a direct and material effect on a major federal program in order to determine

our auditing procedures for the purpose of expressing our opinion on compliance and totest and report on the internal control over compliance in accordance with OMB CircularA-133.

Our consideration of the internal control over compliance would not necessarily discloseall matters in the internal control that might be material weaknesses. A material weaknessis a condition in which the design or operation of one or more of the internal controlcomponents does not reduce to a relatively low level the risk that noncompliance withapplicable requirements of laws, regulations, contracts, and grants that would be materialin relation to a major federal program being audited may occur and not be detected withina timely period by employees in the normal course of performing their assignedfunctions. We noted no matters involving the internal control over compliance and itsoperation that we consider to be material weaknesses.

This report is intended solely for the information and use of the Board of Directors andManagement of the Extra Mile, Region IV, Inc. and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other thanthese specified parties.

September 13, 2006

Stulb & Associates


SCHEDULE OF FINDINGS AND QUESTIONED COSTS

June 30, 2006

SUMMARY OF AUDIT RESULTS

1. The auditor's report expresses an unqualified opinion on the financialstatements of The Extra Mile, Region IV, Inc.

2. No instances of noncompliance material to the financial statements of TheExtra Mile, Region IV, Inc. were disclosed during the audit.

3. The auditor's report on compliance for the major federal award programs forThe Extra Mile, Region IV, Inc. expresses an unqualified opinion on all majorfederal programs.

4. No audit findings relative to the major federal award program for The ExtraMile, Region IV, Inc. are reported in this schedule.

5. The program tested as a major program included:

CFDA NUMBER NAME OF FEDERAL PROGRAM

93.556 Department of Health and HumanServices, Administration for Children andFamilies, Promoting Safe and StableFamilies

6. The threshold for distinguishing Types A and B programs was $300,000.

17

SUPPLEMENTARY INFORMATION


SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

June 30,2006

Federal Grantor/Pass - through Grantor/Program

Department of Health and Human Services,Administration for Children and FamiliesPromoting Safe and Stable Families.

Department of Health and Human Services,Substance Abuse and Mental Health ServicesBlock Grants for Community Health Services.

Department of Health and Human Services,Administration for Children and FamiliesAdoption Opportunities.

Department of Health and Human Services,Administration for Children and FamiliesCommunity-Based Family Resource andSupport Grants.

Federal CFDANumber

93.556

93.958

93.652

FederalExpenditures

$ 555,989.92

139,455.64

11,107.14

93.590 7.500.00

S 714.052.70

NOTE A - BASIS OF PRESENTATION

The accompanying schedule of expenditures of federal awards includes the federal grantactivity of The Extra Mile, Region IV, Inc. and is presented on the accrual basis ofaccounting. The information in this schedule is presented in accordance with therequirements of OMB Circular A-133, Audits of States, Local Governments, and'Non-Profit Organizations. Therefore, some amounts presented in this schedule may differfrom amounts presented in, or used in the preparation of, the basic financial statements.

18

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