habilitation and training services, inc. 2011 · 2018. 11. 9. · habilitation and training...

HABILITATION AND TRAININGSERVICES, INC., HATS II, INC. AND

FRIENDS OF HATS, INC.

Consolidating and Consolidated FinancialsStatements and Supplemental Schedules

June 30, 2011 and 2010

(With Independent Auditors' Report Thereon)

HABILITATION AND TRAINING SERVICES, INC.HATS II, INC. AND FRIENDS OF HATS, INC.

Table of Contents

PageNumber

Independent Auditors' Report

Financial Statements:

Consol idating and Consol idated Financial Statements:

Statements of Financial Position 2

Statements of Activities and Changes in Net Assets 3

Statements of Functional Expenses 4

Statements of Cash Flows 5

Notes to Consolidating and Consolidated Financial Statements 6 - 10

Supplementary Schedules:

Schedule of Federal and State Grant Activity II

Report on Internal Control Over Financial Reporting and on Complianceand Other Matters Based on an Audit of Financial Statements Performedin Accordance with Government Auditing Standards 12 - 13

Schedule of Findings and Questioned Costs June 30, 2011 and 2010 14

Hill. Harper & AssociatesCertified Public Accountants

Independent Auditors' Report

The Board of DirectorsHabilitation and Training Services, Inc.,HATS II, Inc. and Friends of Hats, Inc.Gallatin, Tennessee

We have audited the consolidating and consolidated statements of financial position of Habilitation andTraining Services, lnc., HATS II, Inc. and Friends of HATS, Inc. (nonprofit affiliated organizations) (hereafter,the consolidated entity) as of June 30, 2011 and 2010, and the related consolidating and consolidatedstatements of activities and changes in net assets, functional expenses and cash flows for the years then ended.These financial statements are the responsibility of the consolidated entity's management. Our responsibility isto express an opinion on these financial statements based on our audits. The prior year summarizedcomparative information has been derived from the consolidated entity's 20 I° financial statements and. in ourreport dated November 16,2010, we expressed an unqualified opinion on those financial statements.

We conducted our audits in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issuedby the Comptroller General of the United States. Those standards require that we plan and perform the auditsto obtain reasonable assurance about whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation. We believe that our auditsprovide a reasonable basis for our opinion.

In our opinion, the consolidating and consolidated financial statements referred to above present fairly, in allmaterial respects, the financial position of the consol idated entity as of June 30, 2011 and 2010, and thechanges in its net assets and its cash flows for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated September 16,2011on our consideration of the consolidated entity's internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, grants agreements and other matters. Thepurpose of that report is to describe the scope of our testing of internal control over financial reporting andcompliance and the results of that testing and not to provide an opinion on the internal control over financialreporting or on compliance. That report is an integral part of an audit performed in accordance withGovernment Auditing Standards and should be considered in assessing the results of our audit.

Our audit was conducted for the purposes of forming an opinion on the basic financial statements of theconsolidated entity taken as a whole. The accompanying supplemental information and schedule of federal andgrant activity is presented for the purposes of additional analysis as required by the U.S. Office of Managementand Budget Circular A-133, Audits of States, Local Governments and on-Profit Organizations, and is not apart of the basic financial statements. The supplementary information has been subjected to the auditingprocedures applied in the audit of basic financial statements and, in our opinion, is fairly stated in all materialrespects in relation to the basic financial statements taken as a whole.

dql4-;~September 16,2011

-_._------ -------

Terry A. Hill

615417·7414 POBox 680788

Ernest R. Harper

615417 - 6358

[email protected] Franklin, Tennessee 37068 e.ha rpcr(ij),comcast. net


Consolidating and Consolidated Statements of Financial Position

June 30, 2011 and 2010

June 30, 2011 2010.. --HATS II, Friends of Consol- Consol-

HATS, Inc. Inc. HATS, Inc. idated idatedAssets

Current assets:Cash and cash equivalents $ 288,416 147,889 3,565 439,870 448,358Certificates of deposit 101,212 101,212 99,626Accounts receivable 458,388 458,388 435,363United Way funding 22,000 22,000 18,000Prepaid and other assets 7,809 7,809 32,609Inter entity accounts 3,565 ___ (~,_5ti52.-..-.._-_.- ..•-......... ,,' ..- -_ .... ----_._--- -----_._, ...__ .....__ ...... _ ...

Total current assets 881,390 147,889 1,029,279 1,033,956

Property and equipment, net 1,542,518 55,769 1,598,287 1,853,754

$ 2,423,908 203,658 2,627,566 2,887,7.1 0

Liabilities and Net AssetsCurrent liabilities:

Accounts payable $ 58,459 10 58,469 104,864Accrued expenses 217,458 217,458 262,191Current installments of

long-term debt 24,160 24,160 22,884Tenant deposits ___ 12~ 1.518 1,8.~g_

Total current liabilities 300,077 1,528 301,605 391,799-------

Long-term debt 358,498 358,498 3_82,658------- ------

Net assets:Unrestricted 1,743,333 202,130 1,945,463 2,095,253Temporarily restricted 22,000 ----_ .._-- 22,000 18,Q9.Q_

-------". __.-

Total net assets 1,765,333 202,130 1,967,463 2,113,253_ ..._ ... _----------'.' ..--._---.- .. __ .- ----- ......-------- -_ ... , ...•... , .._-- -------- ....._-_._-_.__ ._--

$------

2,423,9.08 ___ fQ~t651L 2,627>566 __ 2,887JJO.----_._- .

See accompanying notes to consolidating and consolidated financial statements.

2


Consolidating and Consolidated Statements of Activities and Changes in Net Assets

For the years ended June 30, 2011 and 2010

June 30, 2011 2010------- ..• .._---_.". ----_.,-._---

HATS II. Elimi- Consoli- Consoli-HATS, Inc. Inc. nations dated dated

Unrestricted Net Assets:Revenues and support:

Contributions $ 5,324 5,324 5A93Fee for service contracts 121,574 121,574 251,512Medicaid waiver 3,360,175 3,360,175 3,690,553Contract revenue 97,123 97,123 121,365Rental income 16,776 16,776 18,725Supp. security income 264,709 264,709 283,383Food stamps and coupons 13,811 13,811 14,376City / county revenues 2,920 2,920 13,587Interest 6.574 1,595 8,169 10,846Management fees 5,100 (5, I00)Miscellaneous fees and other 171,743 150 171,893 133,892

Total support and revenue 4,049,053 18,521 (5,100) 4,062,474 4,543,732Net assets released from restrictions 571,007 30,145 601,152 490,628----_._-- --_ ..._--

4,620,0_§0_ 48,666 (5,1°92 4,663,626 5,034,360------- ----_._---

Expenses:Program services:

Adult day care 1,304,228 1,304,228 1A51 ,726Child day care 303,519 303,519 234,824Residential services 1,819,265 28,598 1,847,863 2,079,296Family support 260,930 260,930 216,220Supported Employment 300,767 300,767 389,074

-----3,988,709 __ 28,59~ 4,017,307 4,371,140

Supporting services:Management and general 794,909 6,300 ______(5, I00) 796,109 831,412

--_ ... ",." ... ..---- ...•

Total expenses _4,783,618 3~..&~8 _J~_,.L0O) 4,813,416 5,202,552------- .._--, .... __ .•..__ ._-----_ .•._-

Change in unrestricted net assets (163,558) 13,768 -- __ .(149,790) ___Jl§~,12~2----_.-,-----Temporarily Restricted Net Assets:

Revenues and support:United Way 23,074 23,074 17,010Grants 551,933 39,145 582,078 473,618

575,007 30,145 605,152 490,628Net assets released from restrictions __ \?2.l..Q07) (30,Jj~ __ (6.0 1,152) ____ (j9Q.!?l8)Change in temporarily restricted

net assets 4,000 4,000----_."-- ._---_._-Change in net assets ( 159,558) 13,768 (145,790) (168,192)Net assets - beginning of year 1,924,891 1_?8,}62 2,113,253 2,281,445

Net assets - end of year $ 1,765,333 202,130 1,967,463 2,113_,253


3


Consolidating and Consolidated Statements of Cash Flows

For the years ended June 30, 2011 and 2010

Cash Flows from Operating ActivitiesChange in net assets $Adjustments to reconcile increase in

net assets to cash provided byoperating activities:

DepreciationGain on sale of assets(Increase) decrease:

Accounts receivableUnited way fundingPrepaid and other assetsEscrow deposits and reservesDue from (to) affiliates

Increase (decrease):Accounts payableState working capital advanceAccrued expensesTenant deposits

Net operating activities

Cash Flows from Investing ActivitiesPurchase of certificate of depositProceeds from sale of assetsPurchase of capital assets

Net investing activities

Cash Flows from Financing ActivitiesPrincipal payments ofIong term debt

Net financing activitiesCash and cash equivalents:

Net increase (decrease)Beginning of year

End of year

Supplemental Information:Interest paid and expensed to operations:

HATS, Inc.

~ne~, 20_!_1 . . .__HA TS II, Friends of Consoli-

Inc. HATS, Inc. dated

(159,558) 13,768 (145,790.)

177.315 4,219(1,299)

(23,0.25)(4,0.0.0.)24,80.0.

( 19)

181,534(1,299)

(23,0.25)( 4,0.0.0.)24,80.0.

19

(46,395)

(44,733)(342)

19 (59,250.)

(1,586)85,239

___ ( 19~o.o.7)

73,645

(46,236) (159)

__ (342)

17,486---

(44,733)

_------'(>--76~,7 5 5)

(1,586)85,239(6,398)

77,254

(22,884)

___(22,~42

(3,6.09)

(3,60<?2

2010._--Consoli-

dated

(168,192)

20.1,142

(8,30.9)

(3,381)

48,0.30.(82,647)

(2,145)__ (10.9)

(15,611)

10.3,617

~29791

22,638

(22,8~'±2 05,5492

(22,~_~ __ (3??.?491

19 (8,488) (28,522)3,546. 448,3J_~ 37?288o.

3,565 439,879 ~PH~48,358

s 21,497 __ 23,231


(22,384) 13,877__ 310.,80.0._ _ __ ~3_~,Q}L

$__ ~~~2416 __ 112.:..889_

5


Notes to Consolidating and Consolidated Financial Statements

June 30, 2011 and 2010GeneralHabilitation and Training Services, Inc. (HATS, Inc.) HATS II, Inc. and Friends of HATS, Inc. are private,non-profit agencies (hereafter, the consolidated entity) located in Gallatin, Tennessee. The consolidatedentity provides residential services and day care for developmentally challenged adults and children. Fundingfor these services is provided principally by the State of Tennessee, Department of Finance andAdministration, Division of Intellectual Disabilities Services.

In prior years the consolidating and consolidated statements included the activity of Friends of Hats, Inc.,an affiliated organization. The affiliated organization currently has no operations, except for holding cashwhich is owed to HATS, Inc., accordingly the statements of activities do not include Friends of Hats, Inc.

(1) Summary of Significant Accounting PoliciesBasis of Financial Statement PresentationThe financial statements have been prepared on the accrual basis of accounting and accordingly, reflect allsignificant receivables, payables and other liabilities.

HATS, Inc., HATS II, Inc. and Friends of Hats, Inc. have common board members. A majority of the tenantsof HATS 11, Inc. are also clients of HATS, Inc. All significant intercompany transactions have beeneliminated.

These financial statements, however, have been prepared to focus on the entity as a whole and to presenttransactions according to the existence or absence of donor-imposed restrictions in conformity with accountingprinciples generally accepted in the United States of America.

As required by generally accepted accounting principles, the consolidated entity reports information regarding itsfinancial position and activities according to three classes of net assets, when appropriate as follows:

Unrestricted net assets - Net assets not subject to donor imposed stipulations. Unrestricted net assets may bedesignated for specific purposes by action of the governing body.

Temporarily restricted net assets - Net assets whose use is subject to donor imposed stipulations and /or the passage of time.

Permanently restricted net assets - Net assets to be maintained in perpetuity as directed by donor imposedstipulations - the consolidated entity has no such net assets.

The amount of each of the classes of net assets are presented in the statements of financial position and thechange in each class of net assets is presented in the statements of activities.

Revenue RecognitionContributions received are recorded as unrestricted, temporarily restricted or permanently restricted support,depending on the existence and/or nature of any donor restrictions. All donor restricted support is reportedas an increase in temporarily or permanently restricted net assets, depending of the nature of the restriction.When a restriction expires, temporari Iy restricted net assets are reclassi fled to unrestricted net assets andreported in the statements of activities as net assets released from restrictions.

Use of EstimatesThe preparation of financial statements requires management to make estimates and assumptions that affectthe reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenses during the reporting period.Actual results could differ from those estimates.

6


Notes to Consolidating and Consolidated Financial Statements, continued

(1) Summary of Significant Accounting Policies. continuedCash and Cash EquivalentsFor purposes of the statements of cash flows, cash on hand, deposits in financial institutions and highly liquiddebt instruments with an original maturity of three months or less are considered to be cash and cashequ ivalents.

Pledges Receivable - United Way Funding for Next Fiscal YearThese amounts are recorded at their estimated fair value.

Accounts ReceivableAccounts receivable ~re deemed to be fully collectible by management and no reserve is considerednecessary.

Income TaxesThe consolidated entity is exempt from federal income taxes under the provisions of Section 501 (c)(3) of theInternal Revenue Code. Accordingly, no provision for income taxes has been made in the financial statements.There is no unrelated business income tax for 2011 or 2010.

Management has determined the consolidated entity has no activities that would lead to income tax liabilities,further all activities generating revenue are in furtherance of the consolidated entity's tax exempt purpose.

Compensated AbsencesEmployees are entitled to paid vacation, paid sick days and personal days off, depending on job classifi-cation, length of service and other factors. A liability has been provided in the financial statements forcompensated absences relating to vacations earned not paid. It is impractical to estimate the amount ofcompensation for future absences related to sick days and personal days off, accordingly, this liability hasnot been recorded in the accompanying financial statements. The policy is to recognize the cost of theseother compensated absences when actually paid to employees.

Fair Value of Financial InstrumentsThe carrying value of cash, accounts receivable, prepaid expenses, accounts payable and accrued expensesapproximate fair value because of the short maturity of these instruments. The carrying values of otherliabilities and long term debt are not materially different from the estimated fair values of these instruments.

Property and EquipmentExpenditures for property and equipment are stated at cost or estimated fair value at date of gift. Depreciationis provided over the estimated useful lives of the respective assets, ranging from 4 years to 40 years, on thestraight-line method. Expenditures for property and equipment of $1,000 or more are capitalized anddepreciated.

Contributed ServicesContributed services are reflected in the financial statements at the fair value of the services received, ifthose services (a) create or enhance non financial assets or (b) require specialized skills that are providedby individuals possessing those skills and would typically need to be purchased if not provided by donation.During the years ended June 30, 2011 and 2010 the consolidated entity recognized no contributed services.

Allocation of ExpensesThe costs of providing the various programs and other activities have been summarized on a functional basisin the statement of functional expenses. Accordingly, certain costs have been allocated among programsbenefited.

Financial Statement PresentationCertain reclassifications may have been made to the prior year figures in order to conform to current yearpresentation. These reclassifications, if any, have no effect on reported net assets.

7



(1) Summary of Significant Accounting Policies, continuedComparative InformationThe financial statements include certain prior-year summarized comparative information in total but not bynet asset class. Such information does not include sufficient detail to constitute a presentation in conformitywith generally accepted accounting principles. Accordingly, such information should be read in conjunctionwith the consol idated entity's financial statements for the year ended June 30, 2010, from which thesummarized information was derived.

Subsequent EventsSubsequent events have been evaluated for potential recognition and disclosure through September 16, 20 11, thedate these financial statements were available to be issued.

(2) Accounts ReceivableAccounts receivable consists of the following:

GrantsState financial assistance / Medicaid waiverTradeOther

$

HATS,Inc.120,647309,100

7,53221,109

2011-----_ .._--_ .....•._---HATS II, Consol-

Inc. idated120,647309,100

7,53221,109

2010----_. __ .

Consol-idated

63,013340,023

10,84221,485

435,36~ ..45~

(3) Concentration of Credit RiskThe consolidated entity serves developmentally challenged adults and children in Sumner, Robertson andTrousdale counties of Tennessee. Its clients perform work for certain companies in the area, who are billedfor services rendered on an unsecured basis. Further, the consolidated entity is compensated by governmentalagencies and private agencies for services rendered. These services are bi lied based on performance basedcontracts after the services have been rendered on an unsecured basis. The consolidated entity has anaccounting risk of loss to the extend of unsecured accounts receivable in the amount of $28,641 and $32,327,respectively, as of June 30, 2011 and 2010. Cash funds at each financial institution are covered by FDICinsurance up to $250,000, Further, the consolidated entity has a contract with its primary financial institutionwhereby the financial institution has pledged $750,000 in government securities to provide additionalcoverage for a potential loss.

(4) Property and EquipmentProperty and equipment consists of the following:

2011 2010-------.- -

BATS, HATS II, Consol- Consol-Inc. Inc. idatcd idated

Land $ 147,011 17,000 164,011 174,011Buildings 1,663,313 220,867 1,884,180 1,968,031Land and building improvements 489,610 70,360 559,970 585,536Transportation equipment 612,493 612,493 652,951Furniture and equipment 449,137 31,870 481,007 475,207

3,361,564 340,097 3,701,661 3,855,736Less accumulated depreciation 1,819,046 284,328 2,103,374 ----.bQQl,982

$ 1,542_,5.18 55,}69 - 1,598,287. ._1,~?3,75~_

8



(5) Temporarily Restricted Net AssetsTemporarily restricted net assets are available from United Way in the amount of $22,000 in 20 II and $18,000in 2010.

Temporarily restricted net assets released consist of the following:2011 ,-~------~-------

HA TS II, Consol-Inc. idated

30,145 582,078__ --'.1~9,074

30,145

2010--_ _.-----Consol-idated

473,61817,010

==4~90,628

Grants for specific programsUnited Way contributions

HATS,Inc.

s 551,93319,074

$__ ~:ZI,OOI 601 152

(6) Long- Term DebtLong-term debt consists of the following:

HATS, Inc.Mortgage payable to bank relating to Gallatin workshop addition,monthly installments of$3,698, including interest at 5.44%, maturingFebruary 2013 at which time a payment of approximately $345,000is required. The mortgage is secured by the Gallatin real property. $ 382,658

...__ ._----"----

382,658

405,542

405,542

Less current installments of long-term debt

$

24, 160 ....._..__ 2~&~~.

358,498 382,658Maturities oflong-term debt is summarized as follows:

June 30,2012 $2013

24,160358,498

$ 382,658

(7) Commitments and ContingenciesLeasesThe consolidated entity operates certain of its residential group homes under twelve month lease agreementsand month to month rental agreements. Further, certain office equipment is leased under long-termagreements. Rent expense charged to operations for the year ended June 30, 20 II and 20 I0 amounted to$187,355 and $197,004, respectively.

Future obligations under non cancelable office equipment lease agreements amounts to $6,5 lOin 2012;$5,700 in 2013 and 2014; $4,960 in 2015; and $2,900 in 2016.

LitigationThe consolidated entity in the normal course of operations, may be a defendant In lawsuits. Management IS

not aware of any pending asserted or un asserted claims.

(8) 403B Pension PlanHATS, Inc. offers a 403 B pension plan after one year of service at the next bi-annual open enrollment date, if theemployee has reached the age of 21. HATS, inc. matches the employees contribution up to 5% of employee'Sgross earnings. There is a 6 year graded vesting schedule for employer contributions, whereas employeecontributions vest immediately. Employer contributions to the plan for the years ended June 30, 20 II and 2010amounted to $23,023 and $32,887, respectively.

9



(lO) Relationship With State of TennesseeHATS, Inc. receives a substantial amount of its support from the State of Tennessee, Department of Financeand Administration, Department of Intellectual and Developmental Disabilities (the State). A significant reductionin the level of this support, if this were to occur, would have an effect on the Organization's programs and activities .

. HATS, Inc. receives funding from the State for the following programs:

HATS,Inc.

2011HATS II,

Inc.Consol-id9ted

Grants:Family SupportPre School - Early Intervention ProgramARRA - Stimulus packageTHDA - Low Income Housing

Assistance

$ 255,622208,700

87,611

255,622208,700

87,611

2010----------

Consol-id9ted

219,797212,400

13,683

551,933 30,145 582,078

____ 1°,14_5 JO, 145_ _ 2.?!..73~

473,618

Fees for Service Contracts:State Support LivingSupported Employment

18,060103,514

18,060103,514

Medicaid Waiver

__ ~~},_~?_4_

3.360,175

121,574

3,360,175

___ 4~0~3,68L _ 4,063,827

$~~~4 30,145 4,645,904

10

61,070190,442

251,512

3,690,553

4.415,683-----_ ..._--

4,889,301 _


Consolidating and Consolidated Schedule of Federal and State Grant Activity

June 30, 2011

Program Grantor Agency

CFDANo.Grant

AmountID Number

HATS, Inc.-------------- .~----

State of Tennessee, Dept. of Finance and AdministrationGrants for June 30, 2011

Department of Intellectual andDevelopmental Disabilities

N/A GR1131396Family Support $ 255,622 $

Department of Educa tionDGA-C000018

Early InterventionN/ A State funding $

84.393A Federal funding - ARRA212AOO

94.100

Grants for June 30, 2010Department of Education

DGA-COOOOI8Early Intervention

NI A State funding84.393A Federal funding - ARRA

$ 212AOO19,400-----

$ 231,800

HATS II, Inc.------------------

Tennessee Housing Development Agency14.182 TN43H 112052

Lower IncomeHousing AssistanceProgram

Federal Funds Expenditures* THDA Fundsa ARRA Stimulus funds

Balance dueJune 30,

2010

55,0187,995

63,013

$ 30,14587,610

11

CashReceipts

255,622

130,11745,546

55,0187,995

494,298

30,145

30,145

======52==4,443

Expend-itures

255,622

208,70087.610 *

551,932

Balance dueJune 30,

2011

78.58342,064

120,647

30,145 * _30,145

582,077 120,647

- ----------------

Hill, Harper & AssociatesCertified Public Accountants

Report on Internal Control Over Financial Reportingand on Compliance and Other Matters Based on an Audit of

Financial Statements Performed in Accordance withGovernment Auditing Standards

The Board of DirectorsHabilitation and Training Services, Inc.,HATS II, Inc. and Friends of Hats, Inc.Gallatin, Tennessee

We have audited the consolidating and consolidated financial statements of Habilitation and Training Services,Inc., HATS II, Inc. and Friends of HATS, Inc. (nonprofit affiliated organizations) (hereafter, the consolidatedentity) as of and for the year ended June 30, 20 I0, and have issued our report thereon dated November 16, 2010.We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issuedby the Comptroller General of the United States.

Internal Control Over Financial ReportingIn planning and performing our audit, we considered the consolidated entity's internal control over financialreporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on thefinancial statements, but not for the purpose of expressing an opinion on the effectiveness of the consolidatedentity's internal control over financial reporting. Accordingly, we do not express an opinion on theeffectiveness of the consolidated entity's internal control over financial reporting.

A deficiency in internal control 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 detect and correctmisstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, ininternal control, such that there is a reasonable possibi Iity that a material misstatement of the entity's financialstatements will not be prevented, or detected and corrected on a timely basis.

Our consideration of internal control over financial reporting was for the limited purpose described inthe first paragraph of this section and was not designed to identify all deficiencies in internal control overfinancial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did notidentify any deficiencies in internal control over financial reporting that we consider to be material weaknesses,as defined above.

Compliance and Other MattersAs part of obtaining reasonable assurance about whether the consolidated entity's financial statements are freeof material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,contracts, and grants agreements, noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts. However, providing an opinion on compliance with thesewas not an objective of our audit and, accordingly, we do not express such an opinion. The results of our testsdisclosed no instances of noncompliance or other matters that are required to be reported under GovernmentAuditing Standards.

Terry A. Hill

615417-7414 POBox 680788

Ernest R. Harper

615417 - 6358

terryhill.HHA(t.i)gmail.com Fr-anklin, Tennessee 37068 [email protected]

12

* * * * * * *This report is intended for the information and use of management, the Board of Directors, others within theorganization, Tennessee Comptroller of the Treasury - Division of Municipal Audit, and appropriate grantors,and is not intended to and should not be used by anyone other than those specified parties. However, this reportis a matter of public record and its distribution in not limited.

September 16,2011

13


Schedule of Findings and Questioned Costs

Year ended June 30, 2011 and 2010

June 30, 2011

State of Tennessee, Dept. of Finance and Administration,Department of Intellectual and Developmental Disabilities

and Department of Education



No Findings and Questioned Costs were noted for the year ended June 30,2011

June 30, 2010

State of Tennessee, Dept. of Finance and Administration,Division ofIntelIectual Disability Services

and Department of Education



No Findings and Questioned Costs were noted for the year ended June 30, 2010

14

habilitation and training services, inc. 2011 · 2018. 11. 9. · habilitation and training...

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