57 7

BATON ROUGE AREA SPORTS FOUNDATION, INC

Baton Rouge, Louisiana

Annual Financial Statements As of and For the Year Ended December 31, 2009

Under provisions of state law, this report is a public document. A copy of the report has been subnnitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court.

Release Date i f I OOl CC> Laladj

DONALD C. De VILLE Certified Public Accountant 7829 Bluebonnet Boulevard

Baton Rouge, Louisiana 70810

American Insitute CPAs - C ^ l / f W * M / V ^ * . / - ^ P K ( ( ( ( ^ Louisiana Society CPAs

7829 BLUEBONNET BLVD. BATON ROUGE, LA 70810

(225) 767-7829

April/, 2010

To the Board of Directors Baton Rouge Area Sports Foundation, Inc. Baton Rouge, Louisiana

I have reviewed the accompanying statement of financial position of Baton Rouge Area Sports Foundation, Inc. (a Louisiana non-profit corporation) as of December 31, 2009, and the related statements of activities and cash flows for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All infomiation included in these financial statements is the representation of the management of Baton Rouge Area Sports Foundation, Inc.

A review consists principally of inquiries of Company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, I do not express such an opinion.

Based on my review, I am not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles.

In accordance with the Louisiana Government Audit Guide and the provisions of state law, 1 have issued a report dated April 7, 2010, on the results of my agreed-upon procedures for compliance with laws and regulations.

BATON ROUGE AREA SPORTS FOUNDATION. INC STATEMENT OF FINANCIAL POSITION

DECEMBER 31,2009

ASSETS: Cash $120,306 Fixed Assets, net 0_

Total Assets

LIABILITES AND NET ASSETS: LIABILITIES; Line of Credit Payable Accounts Payable Payroll Withholdings Payable Retirement Payable Deferred Revenue

Total Liabilities

NET ASSETS Unrestricted

Total Net Assets

TOTAL LIABILITES AND NET ASSETS

120,306

$6,953 $287 2,933

20,000 50,000 80,173

40,133 40,133

120,306

See accompanying notes and accountant's report.

3

BATON ROUGE AREA SPORTS FOUNDAIONS, INC. STATEMENT OF ACTIVITIES

YEAR ENDED DECEMBER 31, 2009

Revenues, gains and other support: Support fron the Public: Contributions

Grants from Governmental Agencies: City of Baton Rouge Baton Rouge Convenion & Visitors Bureau State of Louisiana

Grants from Others-Team Baton Rouge, Inc. Sponsorships Special Events:

Mardi Gras Pickleball

Net Assets Released from Restrictions: Other Income

Total Revenue, Gains and Other Support

$6,000

20,000 100,000 150,000

5,200 11,297

15,457 3,418

3.303

314.675

EXPENSES: Auto Expenses Bank Charges Event Related Expenses Insurance Interest Expense Licenses Permits Postage & Printing Professional-Accounting Professional-Other Salaries Sponsorships Supplies Payroll Taxes Retirement Telephone

Total Expenses

7,633 176

25,618 25.309

501 5

1,147 6,717 1.613

179,667 1,000

377 12,546 15,000

80 277.389

Increase in Net Assets

NET ASSETS AT BEGINNING OF YEAR

NET ASSETS AT END OF YEAR

37,286

2.847

40.133

See accompanying notes and accountant's report.

BATON ROUGE AREA SPORTS FOUNDATION. INC. STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2009

CASH FLOWS FROM OPERATING ACTIVITES: Changes in net assets $37,286

Adjustment to reconcile increases in net assets to net assets provided by operating activites: Depreciation 0

(Increases) decreases in operating assets: Accounts receivable 30,000

Increases (decreases) in operating liabilites: Accounts payable Employee payroll taxes Retirement Payable Deferred Revenue

Net Cash Provided by Operating Activities

Cash Flows From Financing Activities: Payments on Line of Credit

Net Cash Provided (used) By Investing Activities

Net Increase (Decrease) in Cash

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

235 (173)

5,000 50,000

122.348

(1.823) (1.823)

120,525

(219)

120.306

Supplemental Data: Interest Paid 501

See accompanying notes and accountant's notes.

BATON ROUGE AREA SPORTS FOUNDATION, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2 009

NOTE #1 - NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization The Mission of the Baton Rouge Area Sports Foundation, Inc. (Foundation) is to assist in securing and staging state-wide, regional, national and international sporting competitions and special events for the Greater Baton Rouge Area, thereby having a positive economic impact on our community.

BASIS OF PRESENTATION The financial statements are presented in accordance with Statement of Financial Accounting Standards No. 116 (SFAS No. 116), "Accounting for Contributions Received and Contributions Made" and Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. SFAS No. 116 requires contributions to be recognized as revenue when they are received or unconditionally pledged. SFAS No. 117, which eliminates the utilization of fund accounting for financial reporting purposes, requires net assets to be classified as either 1) unrestricted, 2) temporarily restricted, or 3) permanently restricted depending on limitations placed on the net assets.

DONATED SERVICES Amounts have not been reported in the statements for donated services because they do not meet the criteria for recognition under SFAS No. 116. A substantial number of volunteers have donated significant amounts of their time to the Organization.

Contributions of service shall be recognized if the services received (a) create or enhance non-financial assets or (b)' require specialized skills, are provided by individual possessing those skills and would typically need to be purchased if not provided by donation.

REVENUE RECOGNITION Contributions are recognized as revenue when they are received or unconditionally pledged.

Conditions - Contributions are recorded as unrestricted as unrestricted, temporarily restricted or permanently restricted support depending on the existence and/or nature of any donor restrictions.

Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized.

BATON ROUGE AREA SPORTS FOUNDATION, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2 009

REVENUE RECOGNITION: CONTRIBUTIONS - Continued...

All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purposes restriction is accomplished), temporarily restricted net assets are classified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions.

The Organization reports gifts of land, buildings, and equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used.

Contributions receivable represent amounts committed by donors that have not been received by the Organization.

INCOME TAXES The Organization is a not-for-profit organization that is exempt from income taxes under section 501(c)(6) of the Internal Revenue Code.

CASH AND CASH EQUIVALENTS For the purposes of the statement of cash flows, the organization considers all unrestricted highly liquid investments with an initial maturity of three months or less to be cash equivalents.

PREPAID Insurance and similar services which extend over more than one accounting period have been recorded as expenses.

ACCOUNTS RECEIVABLE Accounts receivable are written-off under the direct write-off method whereby bad debts are recorded when a receivable is deemed uncollectible. If they are subsequently collected they are recorded as miscellaneous income. The direct charge-off method is not a material departure from GAAP as it approximates the valuation method,

USE OF ESTIMATES The preparation of financial statements in-conformity with generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

BATON ROUGE AREA SPORTS FOUNDATION, INC NOTES TO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2 00 9

PROPERTY AND EQUIPMENT The purchase of property and equipment is recorded at cost. Donations of property and equipment are recorded as support at their estimated fair value. Such donations are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted support. Property and equipment is depreciated using the straight-line method over the estimated useful lives of 5 to 10 years.

NOTE #2 - CONCENTRATION OF CREDIT RISK FOR CASH HELD IN BANK

At December 31, 2009, the Baton Rouge Area Sports Foundation, Inc. maintains several bank accounts at one financial institution. Accounts at an institution are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At year end, all accounts were insured.

NOTE #3 - EQUIPMENT

Equipment at year-end consist of the following:

Equipment $2,195 Less: Accumulated Depreciation (2,195

Equipment Book Value -0

NOTE #4 - LEASE OBLIGATIONS

The Foundation occupies office space provided by the Baton Rouge Convention and Visitor's Commission without charge.

NOTE #5 - LINE OF CREDIT

The Foundation has a $20,000 line of credit at 10.0% at Bank One. At year-end the balance was $6,953 which includes accrued interest

Future principal payments area as follows:

Year Ended December 31, 2010 $6,953

BATON ROUGE AREA SPORTS FOUNDATION, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2009

NOTE #6 - DEFERRED REVENUE

The Baton Rouge Area Sports Foundation, Inc. has deferred one half of its State of Louisiana allocation due to year end timing issues.

NOTE #7 - PENSION PLAN

The Baton Rouge Area Sports Foundation, Inc. contributes $15,000 to the executive directors pension plan.

NOTE #8 - BOARD OF DIRECTORS' COMPENSATION

The Board of Directors is a voluntary board; therefore, no compensation has been paid to any member.

NOTE #9 - CONTINGENCIES

The Baton Rouge Area Sports Foundation, Inc. receives a portion of its revenues from government grants and contracts, all of which are subject to audit by the governments. The ultimate determination of amounts received under these programs generally is based upon allowable cost reported to and are subject to audit by the government. Until such audits, if any, there exists a contingency to refund any amount received in excess of allowable cost. Management is of the opinion that no material liability will result from such audits.

NOTE #10 - RISK MANAGEMENT

The Library is exposed to various risks of loss related to torts, theft of, damage of and destruction of assets,- errors and omissions and natural disasters for which the Library carries commercial insurance. There have been no significant reductions in coverage from prior year and settlements have not exceeded coverage in the past three years.

ATTESTATION REPORT

10

DonaU C. DeVitte Member • / )/%finlA I 7 Jp l / l l lp Member American insitute CPAs -A-^'l/f M*M/ W^* Z ^ P K H-^P Louisiana Society CPAs

7829 BLUEBONNET BLVD. BATON ROUGE, LA 70810

(225) 767-7829

Independent Accountant's Report on Applying Aqreed-Upon Procedures

April 7, 2010

To the Members of the Board Baton Rouge Area Sports Foundation, Inc. P 0 Box 4149 Baton Rouge Area LA 70821

I have performed the procedures included in the Louisiana Government Audit Guide and enumerated below, which were agreed to by the management of Baton Rouge Area Sports Foundation, Inc. and the Legislative Auditor, State of Louisiana, and applicable state grantor agency/agencies solely to assist the users in evaluating management's assertions about Baton Rouge Area Sports Foundation, Inc.'s compliance with certain laws and regulations during the year ended December 31, 2009, included in the accompanying Louisiana Attestation Questionnaire. Management of Baton Rouge Area Sports Foundation, Inc. is responsible for its financial records and compliance with applicable laws and regulations. This agreed-upon procedures engagement was performed in accordance with standards established by the American Institute of Certified Public Accountants and applicable standards of Government Auditing Standards. The sufficiency of these procedures is solely the responsibility of the specified users of the report. Consequently, I make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

Federal, State and Local Awards

1. Determine the amount of Federal, State and local award expenditures for the fiscal year by grant and grant year.

Local: City of Baton Rouge/Parish of East Baton Rouge $20,000 Baton Rouge Convention & Visitor Commission 100,000

State: State of Louisiana - Economic Development 150,000

11

2. Randomly select 6 disbursements made during the period under examination and:

3. For the items selected in procedure 2, I traced payments to supporting documentation as to proper amount and payee;

I examined supporting documentation for each of the six randomly selected disbursements and found that payments was for the proper amount and made to the correct payee.

4. For the items selected in procedure 2, I determined if payments were properly coded to the correct fund and general ledger account; and

All of the payments were properly coded to the correct fund and general ledger account.

5. For the items selected in procedure 2, I determined whether payments received approval from proper authorities.

Inspection of documentation supporting each of the six selected disbursements indicated approvals from the accountant and were marked paid.

Open Meetings

6. I examined evidence indicating that agendas for meetings recorded in the minute book were posted or advertised as required by LSA-RS 42:1 through 42:12 (the open meetings law).

The Baton Rouge Area Sports Foundation, Inc. posted a notice of each meeting and the accompanying agenda on the door of the Baton Rouge Area Sports Foundation, Inc.'s office building.

Budget

7. I Obtained a copy of the legally adopted budget and all amendments.

I obtained a copy of the budgets for each grant filed with the State with the anticipated use of funds and objectives of the project.

Prior Year Comments

8. Review any prior-year suggestions, recommendations and/or comments to determine the extent to which such matters have been resolved.

Not applicable

I was not engaged to, and did not, perform an examination, the objective of which would be the expression of an opinion on Management assertions. Accordingly, I do not express such an opinion. Had I performed additional procedures, other matters might have come to my attention that would have been reported to you.

12

This report is intended solely for the use of management of Baton Rouge Area Sports Foundation, Inc, the Legislative Auditor (State of Louisiana), and the applicable state grant agency/agencies and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes.

Under Louisiana Revised Statutes 24:513, Legislative Auditor as a public document

this report is distributed by the

Respectfully submitted.

13

BATON ROUGE AREA SPORTS FOUNDATION, INC SCHEDULE OF PRIOR YEAR FINDINGS

YEAR ENDED DECEMBER 31, 200 9

REF NO.

FISCAL YEAR FINDING INITIALLY OCCURRED DESCRIPTION OF FINDING

CORRECTIVE ACTION TAKEN

(YES,NO,PARTIALLY)

CORRECTIVE ACTION/PARTIAL

CORRECTIVE ACTION TAKEN

None

14

BATON ROUGE AREA SPORTS FOUNDATION, INC SUMMARY SCHEDULE OF CURRENT YEARS FINDINGS

FOR THE YEAR ENDED DECEMBER 31, 2 009

None

15

BATON ROUGE AREA SPORTS FOUNDATION, INC. CORRECTIVE ACTION PLAN FOR CURRENT YEAR FINDINGS

YEAR ENDED DECEMBER 31, 200 9

REF NO.

DESCRIPTION OF FINDING

CORRECTIVE ACTION PLANNED

NAME OF CONTACT PERSON

ANTICIPATE] COMPLETION

DATE

Not Applicable

16

LOUISIANA ATTESTATION QUESTIONNAIRE (For Attestation Engagements of Quasi-public Agencies)

Marcti 16.2010

Donald G. DeVille Certified Public Accountant 7829 Bluebonnet Blvd Baton Rouge. LA 70810

In connection with your review of our financial statements as of December 31, 2009 and for the period then ended, and as required by Louisiana Revised Statute 24:513 and the Louisiana Governmental Audit Guide, we make the following representations to you. We accept full responsibility for our compliance with the following laws and regulation and the internal controls over compliance with such laws and regulations. We have evaluated our compliance with the following laws and regulations prior to making these representations.

These representations are based on the information available to us as of March 16, 2010.

Federal, State, and Local Awards

We have detailed for you the amount of federal, state and local award expenditures for the fiscal year, by grant and grant year.

Yes [X ] No [ ]

All transactions relating to federal, state, and local grants have been properly recorded within our accounting records and reported to the appropriate state, federal, and grantor officials.

Yes [x ] No [ 1

The reports filed with federal, state, and local agencies are properly supported by books of original entry and supporting documentation.

Yes [ X ] No [ ]

We have complied with all applicable specific requirements of all federal, state, and local programs we administer, to include matters contained in the OMB Compliance Supplement, matters contained in the grant awards, eligibility requirements, activities allowed and unallowed, and reporting and budget requirements.

Yes[X] No [ ]

Open Meetings

Our meetings, as they relate to public funds, have been posted as an open meeting as required by R.S. 42:1 through 42:13 (the open meetings law).

Yes[X ] No[ ]

Budget

For each federal, state, and local grant we have filed with the appropriate grantor agency a comprehensive budget for those grants that included the purpose and duration, and for state grants included specific goals and objectives and measures of performance

Yes[x ] No[ ]

Prior Year Comments

We have resolved all prior-year recommendations and/or comments.

Yes[X ] No [ ]

We have disclosed to you all known noncompliance of the foregoing laws and regulations, as well as any contradictions to the foregoing representations. We have made available to you documentation relating to the federal, state, and local grants, to include the applicable laws and regulations.

We have provided you with any communications from regulatory agencies or other sources concerning any possible noncompliance with the foregoing laws and regulations, including any communications received between the end of the period under examination and the issuance of this report. We will also disclose to you, the Legislative Auditor, and the applicable state grantor agency/agencies any known noncompliance that may occur up to the date of your report.

n _ <r\fK ^ : ^ ^ ^ ^ ^ ^ ^ ^ " Secretary ^ / J i ^ / D O i ^ Date

Treasurer 3 ^ ^ / ' ^ ^ ^ ^ ^^^^

President Date

Qki' ^P iU. . ^/f^//^ 5^^'^^

,t^.,a^/'7M ! \e