lafayette, louisiana financial...

LOUISLVIVA TECHNICAL COLLEGE REGION 4 FOUNDATION

Lafayette, Louisiana

Financial Report June 30,2012

TABLE OF CONTENTS

Independent Auditor's Report 1

FINANCIAL STATEMENTS Statement of Financial Position 2 Statement of Activities 3 Statement of Cash Flows 4 Notes to Financial Statements 5-7

INTERNAL CONTROL AND COMPLIANCE

Independent Auditor's Report on Compliance and on Intemal Control over Financial Reporting Based on mi Audit of Fmancial Statements Perfonned in Accordance with Government Auditing Standards g-9

Summary Schedule of Prior Year Findings 10 Schedule of Findings and Questioned Costs U Management's Corrective Action Plan for Current Year Findings 12

Damall, Sikes, Gardes&Frederick

(A Corporation of Certified Public Accountants)

INDEPENDENT AUDITOR'S REPORT

To the Board of Trustees Lomsi£uia Technical College Region 4 Foundation Lafayette, Louisiana

Eugene H. D a r n a l l , CPA, D e c e a s e d 2009

E. Larry S ikes , CPA/PFS , CVA, CFP-Danny P. F r e d e r i c k , CPA

Clay ton E. D a r n a l l , CPA, CVA Eugene H, Darna l l , l l [ , CPA

S t e p h a n i e M. H i g g i n b o t h a m , CPA John P. A r m a t o , C P A ' P F S

J. S t ephen G a r d e s , CPA, CVA J e n n i f e r S . Z i e g l e r , C P A / P F S , C F P -

C h r i s A. Mi l l e r , CPA, CVA Steven G. M o o s a , CPA

M. Rebecca G a r d e s , CPA Joan B. Moody, CPA

Lauren V. H e b e r l , CPA/PFS Barba ra Ann Wal l s , CPA/CFE

S tephen R. D i sch le r , MBA. CPA Pamela Mayeux Bon in , CPA, CVA

Er i ch G. Loewer , I I I , CPA, M.S .Tax Cra ig C. B a b i n e a u x , C P A / P F S , CFP-

Jeremj- C. M e a u x , CPA Chad M. Ba i l ey , CPA

Ka th leen T. D a r n a l l , CPA D u s t i n B. B a u d i n , CPA, MBA

Kevin S, Young , CPA Adam J. Cur ry , CPA

Chr i s ty S. Dew, CPA, MPA B l a i n e M. Croche t , M . S . , CPA

Rachel W, A s h f o r d . CPA Veron ica L. LeBleu , CPA, MBA

Jacob C. R o b e r i e , C P A ' P F S Kyle P. Sal lz i i ian . CPA

C h r i s t i n e A. Guidry , CPA, MBA Brandon L. Por t e r , CPA

Tanya S. N o w l i n , P h . D . , CPA E l i s e B . FaBcheauK. CPA

N i c o l e B . B i u c h e z , CPA, MBA B r a n d o n R. D n n p h y . CPA

Seth C. N o r r i s , CPA W. Ky le George , CPA, MBA

Mary Ca the r ine H o l l i e i . CPA

We have audited the accompanying statement of financial position of Louisiana Technical College Region 4 Foundation (a nonprofit organization) as of June 30, 2012, and the related statement of activities and cash flows for the year then ended. These financial statements are fhe responsibility ofthe Foundation's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America Those standards require that we plan and perform *e audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing fhe accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a re^onable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Louisiana Technical College Regjon 4 Foundation as of June 30, 2012 and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards^ we have also issued a report dated August 15,2012, on our consideration ofthe Louisiana Technical College Region 4 Foimdation's intemal control over financial reporting and our test of its compliance with certain provisions of laws, regulations, contracts, and grants.

A Corporation of Certified Public Accountants

Lafayette, Louisiana August 15,2012

2000 K e l i s t e Sa loom Rd. Su i t e 300

L a f a y e t t e , LA 70508 P h o n e : 3 3 7 . 2 3 2 . 3 3 1 2

Fax : 3 3 7 . 2 3 7 . 3 6 1 4

1231 E. Laure l A v e n u e E u n i c e , LA 70S35

P h o n e : 3 3 7 . 4 5 7 - 4 1 1 6 Fax: 3 3 7 . 4 5 7 . 5 0 6 0

1201 B r a s h e a r Avenue Sui te 301

Morgan City, LA 70380 P h o n e : 9 8 5 . 3 8 4 . 6 2 6 4

Fax : 9 8 5 . 3 8 4 , 8 1 4 0

203 S. JeffetBon S t r ee t A b b e v i l l e . LA 70510 P h o n e ; 3 3 7 . 8 9 3 . 5 4 7 0

Fax: 3 3 7 . 8 9 3 . 5 4 7 0

Amer i can I n s t i t u t e of Cer t i f i ed Pub l i c A c c o u n t a n t s

Soc ie ty of L o u i s i a n a Cer t i f i ed Pub l i c A c c o u n t a n t s

www.da fcpas . com

http://www.dafcpas.com

LOUISIANA TECHNICAL COLLEGE REGION 4 FOUNDATION

Statement of Financial Posifion June 30,2012

ASSETS

CURRENT ASSETS Cash Promises to give

Total current assets

Total assets

$ 49,946

900

50,846

L. 50.846

NETASSETS

NETASSETS Unrestricted Temporarily restricted

Total net assets

$ 33,805 17,041

$ 50.846

See independent auditor's report and notes to financial statements. 2


Statement of Activities Year Ended June 30,2012

Temporarily Unrestricted Restricted Total

UNRESTRICTED NET ASSETS Revenues, Gains and Other Support

Annual Fund donations A Taste of Success donations Miscellaneous donations In-kind contributions

Total support and revenue

Expenses: Support services -

Management and general Fund-raising

Total expenses

Excess of support and revenue over expenses

NET ASSETS, beginning

NET ASSETS, ending

$ - $ 31,415 $ 31,415 12,125 - 12,125

839 - 839 31,450 - 31,450

L=

44.414

7,327 32^87

39,614

4,800

29.005

33,805

31,415

40,230

40.230

(8,815)

25.856

$ 17.041

75,823

47,556 32,287

79.843

(4,015)

54.861

$ 50.846

See independent auditor's report and notes to financial statements. 3

LOLTSIANA TECHNICAL COLLEGE REGION 4 FOL'NDATION

Statement of Cash Flows Year Ended June 30, 2012

CASH FLOWS FROM OPERATING ACTIVITIES Decrease in net assets $ (4,015) Adjustments to reconcile decrease in net assets

to cash provided by operations Decrease in fimds held m tmst by others f9001

Net decrease in cash f"4,915)

CASH, beginning of year 54.860

CASH, end of year S 49,946

See independent auditors report and notes to fmancial statements. 4


Notes to Financial Statements

NOTEl NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOL'NTING POLICIES

Basis of Presentation

Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, "Financial Statements of Not-for-Profit Organizations." Under SFAS No. 117, the Foundation is required to report infonnation regardmg its financial position and activities according to three classes of net assets: unrestricted net assets, temporally restricted net assets, and permanently restricted net assets.

Reporting Entity

Louisiana Technical College Re^on 4 Foundation is a non-profit organization organized for the purpose and mission of engaging in educational, scientific, literary, benevolent, and charitable worics in support exclusively for ^ e campuses of Louisiana Technical College Region 4, which is a political subdivision and component unit ofthe State of Louisiana,

On July 1, 2012, the Foundation legally changed its name to Southwest Community College Foundation.

Nature of Activities

Louisiana Technical College Region 4 Foundation (Foundation) was organized to:

• Promote the educational and cultural welfare of Louisiana Technical College Region 4 and all departments thereof, and to develop, expand, and improve the Region's facilities so as to provide broader educational advantages and opportunities, encourage education^ advancement and opportunities, and increase tiie Region's usefulness to the citizens of Louisiana and the United States of America,

• To solicit and accept funds of all kinds, including property, both real and personal, whether principal or income, tangible or intangible, bested or contingent, for the purposes that meet the goal of serving Region,

• To provide educational and financial aid and resources to the students, faculty, and staff and by providing relief for those students in need of financial resources in order to attend one ofthe campuses of Louisiana Technical College Region 4,

• To engage in fundraising activities, promotions, or any legal activity for the purpose of meeting the mission of serving the Region's administration in educating it's students.

Income Tax Exemption

The Foundation is a not-for-profit organization that is exempt irom income taxes under Section 501(c) (3) ofthe U.S. Intemal Revenue Code and comparable state law, and contributions to it are tax deductions within the limitations prescribed by the Code.

LOUISIANA TECHNICAL COLLEGE REGION 4 FOLTSIDATION


NOTEl NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Accounting

The financial statements of the Foundation have been prepared on the accrual basis of accounting.

Contributions

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

Recognition of Donor Restrictions

Contributions are recognized as revenue when the donor makes a promise to ^ve the Organization that is, in substance, unconditional. Contributions that are restricted by tiie donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. AH other donor restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified as unrestricted net assets.

Cash and Cash Equivalents

For the purposes ofthe statements of cash flows, the Foimdation considers all highly liquid debt instruments purchased with an original maturi^ of six months or less to be cash equivalent. Ttiere were no cash equivalents at June 30,2012.

Uses of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and Habilities at the date of the financiai statements and the reported amounts of revenues and expenses during the reporting period. Actaal results could differ fi-om those estimates.

In-Kind Contributions

In-kind contributions consist primarily of donated services (banquet services) and contributed specialized skills (accounting administration). Contributed services are recorded at the fair value ofthe services provided.

Net Assets

Net assets of the Foundation are reported as unrestricted (no donor restrictions) or temporarily restricted (based on the existence of donor restrictions).

6



NOTEl NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Subsequent Events

Management has evaluated subsequent events through August 15,2012, the date the financial statements were available to be issued.

NO TO 2 COMPENSATION OF BOARD OF DIRECTORS

Presently, Trustees do not receive any compensation for their services as Trustees of the Foundation. Directors and Trustees may be reimbursed for their expenses, if any, incurred in carrying out the purposes of the Foundation, provided that such reimbursement does not adversely affect the Foundation's qualification under Section 501(c)(3) of the Internal Revenue Code.

NOTE 3 IN-KIND CONTRIBUTIONS

The Foundation recognizes revenue for certmn services received at the fair value of those services. These services include professional services donated by accoimtants and donated services provided for the annual banquet. The fair value ofthe donated services is reflected in revenues and included in expenses in the following functional categories:

Management and general Fimd-raising

Total

$ 3,755 27,695

$ 31,450

NOTE 4 PROMISES TO GIVE

Unconditional promises to give are reported at net realizable value if, at the time the promise is made, payment is expected to be received in one year or less. Unconditional promises that are expected to be collected in more than one year are reported at fair value initially and in subsequent periods because the Foundation elected that measure in accordance witii SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (ASC 825-10). Management believes that the use of fair value reduces the cost of measuring unconditional promises to give in periods subsequent to their receipt and provides equal or better information to users of its financial statements tiian if those promises were measured using present value techniques and historical discount rates.:

Unconditional promises to give are as follows:

Unrestricted

Gross unconditional promises to give

900

900

INTERNAL CONTROL AND COMPLLWCE

>

Damall, Sikes, Gardes ̂ Frederick

(A Cotpoiation of Certified Public AccountMtts)

Independent Auditor's Report on Intemal Control Over Financial Reporting and on Compliance and

Other Matters Based on an Audit of Financial Statements Performed in

Accordance with Government Auditing Standards

The Board of Trustees Louisiana Technical College Region 4 Foundation Lafayette, Louisiana

Eugene H. Da rnaH, CPA, D e c e a s e d 2009

E. La r ry S ikes , C P A / P F S , CVA, CFP« Danny P. F r e d e r i c k . CPA

Clay ton E. D a r n a l l , CPA, CVA Eugene H. D a r n a l l , I I I , CPA

S tephan ie M. H i g g i n b o t h a m , CPA John P. A r m a t o , CPA/PFS

J, S tephen G a r d e s , CPA. CVA Jenn i f e r S. Z i e g l e r , C P A / P F S , CFP"

Chr i s A, M i l l e r , CPA. CVA Steven G. Moosa , CPA

M. Rebecca G a r d e s . CPA Joan B . Moody. CPA

Lauren V. H e b e r l . CPA.'PFS Barba ra Ann W a l t s , CPA/CFE

S tephen R. D i s c h l e r , MBA, CPA Pamela M a y e u x Bon in , CPA, CVA

Er ich G. Loewer , I H , CPA, M.S,Tax C ta ig C. B a b i n e a u x , C P A / P F S , CFP"

Je remy C. M e a u x , CPA Chad M. Ba i ley , CPA

K a t h l e e n T. D a r n a l l , CPA Dust in B . B a u d i n , CPA, MBA

Kevin S. Young, CPA Adam J. Curry , CPA

Chr i s ty S. Dew, CPA, MPA Bla ine M. C r o c h e t , M . S . , CPA

R a c h e l W. A s b f o r d . CPA Veron ica L. L e B l e u , CPA, MBA

Jacob C. R o b e r i e , CPA/PFS Kyle P. S a l l z m a n , CPA

C h r i s t i n e A. Gu id ry , CPA, MBA B r a n d o n L. Po r t e r . CPA

Tanya S. N o w l i n , P h . D . , CPA E l i s e B . F a u c h e a u x , CPA

N i c o l e B. B r u c h e z , CPA. MBA B r a n d o n R. Dunphy , CPA

Seth C. N o r r i s , CPA W. Ky le G e o r g e , CPA, MBA

Mary C a t h e r i n e Hol l i e r , CPA

We have audited the financial statements of Louisiana Technical College Region 4 Foundation (a nonprofit organization) as of and for the year ended June 30, 2012, and have issued our report thereon dated August 15,2012. We conducted our audit m accordance with auditing standards generedly accepted in the United States of America and tiie standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States.

Intemal Control Over Financial Reporting

Management of Louisiana Technical College Region 4 Foundation is responsible for establishing and maintaining effective intemal control over financial reporting. In plarming and performing our audit, we considered the Louisiana Technical College Region 4 Foundation's intemal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Louisiaim Technical College Region 4 Foundation's intemal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness ofthe Foundation's intemal control over financial reporting.

A deficiency in intemal control exists when the design of operation of a control does not allow management or employees, in the nonnal course of performing their assigned fimctions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in intemal control such that tiiere is a reasonable possibility that a material misstatement ofthe entity's financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration ofthe intemal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in intemal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify ^ y deficiencies in intemal control over financial reporting that we consider to be material weaknesses, as defined above. However, we identified certain deficiencies in intemal control over financial reporting, described in the accompanying schedule of findings and questioned costs that we consider to be significant deficiencies in intemal control over financiai reporting. A signficant deficiency is a deficiency, or combination of deficiencies, in intemal control that is less severe than a material weakness, yet important enough to merit attention by those charged with govemance.

2000 KaHs t e Sa loom Rd. Su i t e 300

La faycuc , LA 70S08 P h o n e : 3 3 7 . 2 3 2 . 3 3 1 2

Fax: 337.237.3614

1231 E. L a u r e l Avenue E u n i c e , LA 7Q535

Phone i 3 3 7 . 4 5 7 . 4 1 4 6 Fax : 337- ' l5 ' ' .506O

1201 B r a s h e a r Avenue Sui te 301

Morgan C i ty , LA 70380 P h o n e : 9 S S . 3 3 4 , 6 2 6 4

Fax : 9 8 S . 3 8 4 . 8 1 4 0

2 0 3 S. J e f f e r son S t r ee t A b b e v i l l e , LA 70510 PhOEC: 3 3 7 . 8 9 3 . 5 4 7 0

Fan: 337.893.5470

Member of:

Amer i can I n s t i t u t e of Cer t i f i ed Pub l i c A c c o u n i a n t s

Soc ie ty of L o u i s i a n a Cer t i f i ed Pub l i c A c c o u n t a n t s

www.ds fcpas . com

http://www.dsfcpas.com

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Louisiana Technical College Region 4 Foundation's financial statements are fi-ee of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determmation of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not ejqpress such an opinion. The results of our tests disclosed no Instances of noncompliance that are required to be reported under Government Auditing Standards.

Louisiana Technical College Region 4 Foundation's response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs. We did not audit Louisiana Technical College Region 4 Foundation's response and, accordingly, we express no opinion on it.

This report is intended solely for the hiformation and use of the board of directors, management, others within the organization and is not intended to be and should not be used by anyone other than those specified parties. However, Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.

A Corporation of Certified Public Accountants

Lafayette, Louisiana August 15,2012


Summary Schedule of Prior Year Findings Year Ended June 30,2012

11-1 Finding: Iimdequate Segregation of Accountmg Functions

Status: This finding is unresolved. See current year finding 12-1.

10

LOUISIANA TECHNflCAL COLLEGE REGION 4 FOUNDATION

Schedules of Findings and Questioned Costs Year Ended June 30, 2012

Part 1: Summary of Auditor's Results

FINANCML STATEMENTS

Auditor's Report - Financial Statements

An unqualified opinion has been issued on Louisiana Technical College Region 4 Foundation's tinancial statements as of and for the year ended June 30,2012.

Sigmficant Deficienci^ - Financial Reporting

One sigmficant deficiency in intemal control over financial reporting was disclosed during the audit of the financial statements and is shown as item 12-1 in Part II, and is not considered a material weakness.

Material Noncompliance - Financial Reporting

There were no instances of noncompliance material to tiie financial statements disclosed during the audit ofthe financial statements.

FEDERAL AWARDS

This section is not applicable for the fiscal year ended June 30,2012.

Part 2: Findings Relating to an Audit in Accordance with Government Auditing Standards

12-1 Inadequate Segregation of Accounting Functions

Finding:

Due to the small number of employees, Louisiana Technical College Region 4 Foundation did not have adequate segregation of functions within the accounting system.

Recommendation:

Based upon the size ofthe operation and the cost-benefit of additional persoimel, it may not be feasible to achieve complete segregation of duties.

11


Management's Corrective Action Plan for Current Year Findings Year Ended June 30,2012

Response to Finding 12-1:

No response is considered necessary.

12

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