louisiana children's discovery center...

LOUISIANA CHILDREN'S DISCOVERY CENTER, INC.

ANNUAL FINANCIAL STATEMENTS

As of and for the Year Ended December 31, 2015

PHIL HEBERT CERTIRED PUBLIC ACCOUNTANT

A PROFESSIONAL ACCOUNTING CORPORATION

Louisiana Children's Discovery Center, Inc. Hammond, Louisiana

Table of Contents December 31, 2015

Statement Page

Independent Accountant's Review Report

Financial Statements:

Statement of Financial Position

Statement of Activities

Statement of Cash Flows

Notes to the Financial Statements

Supplemental Information:

Schedule of Compensation, Benefits and Other Payments to Executive Director

Other Independent Accountant's Reports:

Independent Accountant's Report on Applying Applying Agreed-Upon Procedures

Louisiana Attestation Questionnaire

A

B

C

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CHARLES P. HEBERT, CPA

CHRISTOPHER S. JOHNSON, CPA, MBA

MEMBER Am^TiL-an Ifuticute of Onifted PuWic Accountanu Society of Louuiana Certified Public Accountants

CPA

Phil Hebert, CPA

600 WEST PINE STREET P.O. BOX 1151

PONCHATOULA, LA 70454 (985) 386-5740 • FAX (985) 386-5742

29644 SOUTH MONTPELIER AVE.. STE. B P.O. BOX 520

ALBANY. LA 70711 (225) 209-6627 • FAX (225) 209-6625


fndependent Accountant's Review Report

To the Board of Directors Louisiana Children's Discovery Center, Inc. Hammond, Louisiana

We have reviewed the accompanying financial statements of Louisiana Children's Discovery Center, Inc. (a nonprofit coiporation), which comprise the statement of financial position as of December 31, 2015, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Accountant's Responsibility Our responsibility is to conduct the review engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion.

Accountant's Conclusion Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America.

Louisiana Children's Discovery Center, Inc. Page 2.

Other Matter Paragraph

Supplementary Information

The accompanying schedule of compensation, benefits, and other payments to the agency head is presented for purposes of additional analysis and is not a required part of the basic financial statements. The information is the representation of management. We have reviewed the information and, based on our review, we are not aware of any material modifications that should be made to the information in order for it to be in accordance with accounting principles generally accepted in the United States of America. We have not audited the supplementary information and, accordingly, do not express an opinion on such information.

Phil Hebert, CPA A Professional Accounting CoTporation Ponchatoula, Louisiana May 27, 2016

Financial Statements


Statement of Financial Position .\s of Decend)er31,2015

Statement A

Assets 2015 Current Assets:

Cash $ 87.130 Accounts Receivable 12,717 Inventory 1,639

Total Current Assets 101,486

Property and Equipment: Furniture. Fixtures & Equpment 143,687 Leasehold Improvements 403,377 Less: Accunulated Depredation (518,318)

Total Property and Eqi^ment 28,746

Other Assets: Refundable Deposits 2,700

Total Other Assets 2,700

Total Assets $ 132,932

Liabilities and Net Assets Current Liabilities:

Accounts Payable $ 6,487 Payroll Liabilities 4,787 Accrued Salary 2,769 Deferred Revenue 1,821 Current Portion of Capital Lease 2,170

Total Current Liabilities 18,034

Long Term UaUtities Long-Term Portion of Capital Lease 2,979

Total Long-Term Liabilities 2,979 Total Liabilities 21,013

Net Assets: Temporarily Restricted 3,586 Unrestricted 108,333

Total N et Assets 111.919 Total Liabilities and Net Assets $ 132,932

See accompanying notes and independent accountant's review report.

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Statement of Activities For the Year Ended December 31,2015

Statement B

Unrestricted Revenues:

Agency/Government Grants Individual/Business Contributions Admission Fees Fundraising Income Gift Shop Income Membersh^ Dues Miscellaneous Revenue Net Assets Released from Restrictions;

Restrictions Satisfied by Payments Total Revenues

Temporarily Restricted Total

132,647 $ 20,465

222,221 46,010 9,310 19,084 22,000

5,989

- $

(5,989)

132,647 20,465

222,221 46,010 9,310 19,084 22,000

477,726 $ (5,989) $ 471,737

(Continued) See accompanying notes and independent accountant's review report.

Louisiana Onidren's Discoveiy Center, Inc. Hamnond, Louisiana

Statement of Activities For the Vear£ndedDeceni)er31,2015

Statement B

Unrestricted Tenporarty Restricted

Expenses: Total

Bad Debt Expense $ 330 $ - $ 330 Birthday Party Expenses 9,328 - 9,328 Conputer Expenses 6,329 - 6,329 Depreciation Expense 82,606 - 82,606 Dues & Subsciptions 2,498 - 2,498 Eiipbyee Salaries & Payroll Taxes 296,949 - 296,949 Field Trip Expense 4,705 - 4,705 Fundraising 22,648 - 22,648 Insisance 14,559 - 14,559 Janitorial 5,026 - 5,026 Maintenance & Repairs 10,868 - 10,868 Office Expenses 18,838 - 18,838 Other Eiiployee Costs 8,136 - 8,136 Professional Fees 4,000 - 4,000 Promotion and Advertising 30,784 - 30,784 Reil 44,960 - 44,960 Sipplies 140 - 140 Travel 3,511 - 3,511 Utilities 21,551 - 21,551

Total Expenses 587,766 - 587,766

Qiai^e in Net Assets (110,040) (5,989) (116,029)

Net Assets: Beginning of the Year End of the Year

218,373 $ 108,333 $

9,575 227,948 3,586 $ 111,919

(Concluded) See accompanying notes and independent accountant's review report.

Louisiana Chfldren's Dlscoveiy Center, Inc. Hamnond, Louisiana

Statement of Cash Floiis For the Year Ended December 31,2015

Statement C

Cash Flovffi from Operating Activities Change in Net Assets Adjustments to Reconcile Change in Net Assets to

Net Cash Used by Operating Activies: Depreciation Ejqpense (Increase yOecrease in Accounts Receivable (Increasej/Decrease m Refundable Deposits Increase/(Decrease) m Accounts Payable Increase/(Decrease) in Accrued Salary Increase/(Decrease) in Accrued Vacation hxnease/(Decrease) in Payroll Liabilities Increase/(Decrease) in Deferred Revenue

Net Cash Used by Operating Activities

2015

$ (116,029)

82,606 32,128 1,000 1,295

(3,376) (1,941)

508 196

(3,613)

Cash Flovvs from Investing Activities Purcha^ of Furniture & Equipment

Net Cash Used by Investing Activities (1,067) (1,067)

Cash Flows from Capital and Reiated Flnancii^ Activities Payments on Capital Lease

Net Cash Used by Capital and Related Financing Activities (1,989) (1,989)

Net Decrease in Cash and Cash Equivalents

Cash and Cash Equivalents - Beginning of the Year Cash and Cash EquivaJents - End of the Year

(6,669)

93,799 87,130

See accompanying notes and independent accountant's review report.

Louisiana Childrcn''s Discovery Center, Inc. Hammond, Louisiana

Notes to the Financial Statements For the Year Ended December 31, 2015

Introduction

The Louisiana Children's Discovery Center, Inc. (the "Center") opened on October 1, 2010 and is a nonprofit entity established to provide children with hands-on educational experiences that will empower imaginations^ peak curiosity, and nurture intelligence. This mission is accomplished through the operation of a children's museum in the City of Hammond, Louisiana.

1. Summary of Significant Accounting Policies

A. Basis of Accounting

The financial statements have been prepared on an accrual basis and in conformity with standards generally accepted in the United Slates of America.

B. Basis of Presentation

The Center is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. During 2012, the Center received $35,000 from the Tangipahoa Parish Tourist Commission of which would be used to purchase an exhibit. Of that amount, $31,414 was used towards the exhibit. At December 31, 2015, $3,586 has not been used and is temporarily restricted.

C. Support and Revenue

Support consists primarily from expense reimbursements from the City of Hammond, admission fees, field trips, birthday parties, membership fees and gifi shop sales. At the end of each month the Center will bill the City of Hammond for expenses incurred. The revenue is recognized once the Center bills the City of Hammond. Membership fees are nonrefundable and recognized as income when received. Birthday parties and field trips are recognized as revenue once the event takes place. Payments made in advance for birthday parties and field trips are deferred until earned. Gifl shop sales are recognized as revenue at the time of sale.

D. Cash

Cash includes demand deposits and money market savings accounts.

E. Income Taxes

The Center qualifies as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code and, therefore, has no provision for federal income taxes. However, should the Center engage in activities unrelated to its exempt purpose it could result in taxable income.



F. Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the Financial statements and the reported amounts of support and revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates.

G. Statement of Cash Flows

For the purposes of the statement of cash flows, all investments with a maturity of 90 days or less from the date of purchase are considered to be cash equivalents.

H. Contributions

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

All contributions are considered to be unrestricted and available for use unless specifically restricted by the donor. Amounts received that are designated for future periods or restricted by the donor for specific purposes are reported as temporarily restricted or permanently restricted support that increases these net asset classes. However, if a restriction is fulfilled in the same reporting period in which the contribution is received, the Center reports the support as unrestricted.

I. Inventories

Inventories are stated at the lower of cost or market determined by the first-in, first-out method. At December 31, 2015, the Center had $1,639 in inventories for the gift shop.

J. Property and Equipment

Property and equipment are stated at cost or fair value at date of donation. Depreciation is provided using the straight-line method over the estimated useful lives of the assets as follows:

Furniture and Fixtures 7 Years Leasehold Inprovements 5 Years Machinery and Equipment 5-10 Years Software 3 Years

K. Vacation and Sick Leave Policy

The Center gives paid time off (PTO) to only full time employees (40 hours a week). Paid time off can be used for personal, sick, or vacation. PTO is credited at the beginning of the year and the employee may carry over five days of PTO if unused at the end of the calendar year. All other PTO will be forfeited at the end of the calendar year. Upon separation of employment for any reason, unused PTO is

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forfeited. PTO is earned from the beginning of your employment with the Center, however; you cannot utilize paid time off until you have completed your first ninety days of employment. Paid time off is earned as follows:

Years of Employment Number of Days 1-2 10 3-5 15 6 18 7 21

2. Cash

Cash at December 31,2015, consisted of the following:

Demand Deposits $ 31,567 Money Market Savings 54,377 Paypal 640 Petty Cash 546

$ 87,130

3. Receivables

Receivables include amounts due from the City of Hammond. The total amount at December 31, 2015 is $12,717. This amount was collected in February 2016.

4. Open Years

The organization's forms 990, Return of Organization Exempt from Income Tax, for the years ending 2015, 2014, 2013 and 2012 are subject to examination by the IRS, generally 3 years after they were filed.

5. Concentration of Revenue

For the year ended December 31, 2015, the Center received funding of $132,647 from the City of Hammond, Louisiana which is approximately 28% of the Center's revenue.

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6. Property and Equipment

A summary of the changes in property and equipment follows:

Balance Balance Decerrber31, Decerrber3l,

Captal Assets 2014 Additions Deletions 2015 FumitLie, Fixtures & Equipmeit $ 142,620 $ 1,067 $ - $ 143,687 Leasehold InprovertEils 403,377 - 403,377 Sdbtotal 545,997 1,067 547,064

Less: Accunuiated Depreciation (435,712) (82,606) (518,318) Net Capital Assets $ 110,285 $ (81,539) $ - $ 28,746

Depreciation expense for the year ended December 31,2015 was $82,606.

7. Property Lease

The Center is leasing property at 113 North Cypress Street, Hammond, Louisiana and the adjacent parking lot. On October 15, 2015 the consideration increased to $3,037 per month, due on the 15'^ day of each month thereafter. The lease is for three years with a 1% increase beginning in the third year. In addition to the rent, a deposit of $2,700 is to be held by the lessor as security for the full and faithful performance of all terms and conditions of the lease. The premises are to be used only for the purposes of a children's museum and other lawful related activities. At December 31,2015 $35,394 was charged to rent under this lease.

The Center is also leasing property at 200 East Charles Street, Hammond, Louisiana. The initial term of the lease was for 12 months beginning on May 1, 2011, and ending on April 30, 2012. The lease was renewed on May 1, 2012 for an additional 12 months. If lessee remains on the premises after the initial term has lapsed, it is automatically presumed that the lessee is accepting the option to renew the lease. The consideration was $1,200 per month, due on the P' day of each month thereafter. The lease ended at the end of July 2015. At December 31, 2015 $9,400 was charged to rent under the lease.

8. Capital Lease

The Center entered into a capital lease purchase agreement with LEAF Capital Funding, LLC effective May 2, 2014 to lease a Konica Minolta bizhub C360 Copier System. The lease is payable in 48 monthly payments of $169. The Center has the option to purchase the copier on the date the last rental payment is scheduled for the purchase price of $1. The cost of the equipment and accumulated depreciation was $8,680 and $2,893. At December 31, 2015, the current and long-term portion of debt on the copier lease is $2,170 and $2,979.

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The future miniraum lease payments as of December 31,2015 are as follows:

Year Ending Princpal Total 2016 $ 2,170 $ 2,170 2017 2,170 2,170 2018 809 809

5,149 $ 5,149

9. Subsequent Events

Management has evaluated subsequent events through the date that the financial statements were available to be issued. May 27, 2016, and determined that the following event occurred and required disclosure.

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Supplemental Information

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Louisiana Children's Discovery Center, Inc. Hammond. Louisiana

Schedule of Compensation, Benefits and Other Payments to Executive Director

For the Year Ended December 31, 2015

Executive Director: Anette Kirylo

Purpose Amount Salary S 50,836 Travel 922 Reimbursements 159 Total payments $ 51,917

See independent accountant's review report.

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Other Independent Accountant's Report

CHARLES P. HEBERT, CPA

CHRISTOPHER S. JOHNSON, CPA, MBA

MEMBER Amfhcon frutin<t(; of C^nfieti Public Accountants Society of Louuiana Ceni/icd Public Accountants

CPA

600 WEST PINE STREET P.O. BOX 1151

PONCHATOULA. LA 70454 (985) 386.5740 • FAX (985) 386.5742

Phil Hebert, CPA

29644 SOUTH MONTPEL1ER AVE., STE, B P.O. BOX 520

.ALBANY, LA 70711 (225) 209-6627 • FAX (225) 209.6625


Independent Accountant's Report on Applying Agreed-Upon Procedures

To the Board of Directors Louisiana Children's Discovery Center, Inc. Hammond, Louisiana

We have performed the procedures included in the Louisiana Governmental Audit Guide and enumerated below, which were agreed to by the management of Louisiana Children's Discovery Center, Inc. (a nonprofit corporation), the Legislative Auditor, State of Louisiana, solely to assist the users in evaluating management's assertions about Louisiana Children's Discovery Center, Inc.'s compliance with certain laws and regulations during the year ended December 31, 2015 included in the accompanying Louisiana Attestation Questionnaire. Management of Louisiana Children's Discovery Center, Inc. is responsible for its financial records and compliance with applicable laws and regulations. This agreed-upon procedures engagement was performed in accordance with attestation 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 this report. Consequently, we 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

I) Determine the amount of federal, state, and local award expenditures for the fiscal year, by grant and grant year.

Louisiana Children's Discovery Center, Inc. had the following awards at December 31, 2015:

$132,646.88 City of Hammond Total $132,646.88

2) For each federal, state, and local award, randomly select six disbursements from each award administered during the period under examination, provided that no more than 30 disbursements would be selected.

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Louisiana Children's Discovery Center, Inc.

3) For the items selected in Procedure 2, trace the six disbursements to supporting documentation as to proper amount and payee.

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

4) For the items selected in Procedure 2, determine if the six disbursements are properly coded to the correct fund and general ledger account.

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

5) For the items selected in Procedure 2, determine whether the six disbursement received approval from proper authorities.

Inspection of documentation supporting each of the six selected disbursements indicated approvals from the executive director and two board members.

6) For the items selected in Procedure 2: For federal awards, determine whether the disbursements complied with the applicable specific program compliance requirements summarized in the Compliance Supplement (or contained in the grant agreement, if the program is not included in the Compliance Supplement) and for state and local awards, determine whether the disbursements comply with the grant agreement, relating to: Activities allowed or unallowed, eligibility, and reporting.

The Center did not receive any federal awards.

7) For the programs selected for testing in Procedure 2 that had been closed out during the period under review, compare the close-out report, when required, with the agency's financial records to determine whether the amounts agree.

The center does not have close-out reports.

Open Meetings

8) Examine evidence indicating that agendas for meetings recorded in the minute book were posted as an open meeting as required by R.S. 42:11 through 42:28 (the open meetings law).

Louisiana Children's Discovery Center, Inc. posted a notice of each meeting and the accompanying agenda on the door of the Center's office building.

Budget

9) For all grants exceeding five thousand dollars, determine that each applicable federal, state, or local grantor agency/agency was provided with a comprehensive budget of those grants that included the purpose and duration, and for state grants included specific goals and objectives and measures of performance.

The Louisiana Children's Discovery Center, Inc. provided the City of Hammond with a budget.

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Louisiana Children's Discovery Center, Inc.

Prior Comments and Recommendations

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

There were no prior year findings.

We were not engaged to perform, and did not perform, an audit, the objective of which would be the expression of an opinion on management's assertions. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

This report is intended solely for the use of management of Louisiana Children's Discovery Center Inc., the Legislative Auditor (State of Louisiana), and the applicable state grantor 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 Statute 24:513, this report is distributed by the Legislative Auditor as a public document.

Sincerely,

Phil Hebert, CPA A Professional Accounting Corporation Ponchatoula, Louisiana

May 27, 2016

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

.(Date Transmitted)

Phil Hebert, CPA Post Office Box 1151 Ponchatoula, LA 70454

in connection with your review of our financial statements as of December 31. 2015 and for the period then ended, and as required by Louisiana Revised Statute (R.S.) 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 V 'If"/ i

Federal, State, and Local Awards

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

Yes[^ 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[/] Nof]

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

Yes No [ ]

We have complied with all applicable specific requirements of ail federal, state, and local programs we administer, to include matters contained in the 0MB Compliance Supplement, matters contained in the grant awards, eligibility requirements, activities allowed and unallowed, and reporting and budget requirements.

yesy] No I )

Open Meetings

Our meetings, as they relate to public funds, have been posted as an open meeting as required by R.S. 42:11 through 42 26 (the open meetings law). Note: Please refer to Attorney General Opinion No. 13-0043 and the guidance In the publication "Open Meeting FAQs," available on the Legislative Auditor's website at http://aDpl.Ha.state.la.usyilala.nsf. to deteimlne whether a non-profit agency is subject to the open meetings law.

Yes [yj No ( 1

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 goats and objectives and measures of performance

Yes[^ Nol 1

http://aDpl.Ha.state.la.usyilala.nsf

Reporting We have complied with R.S, 24:513 A. (3) regarding disclosure of compensation, reimbursements, benefits and other payments to the agency head, political subdivision head, or chief executive officer.

/i Yes [ ^ ) No I )

Prior-Year Comments

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

Yes (/I 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 Auditc^ and the applicable state grantor agency/agencies any known noncompliance that may occur up t<nft^ate of your report

Secretary ^

Treasurer.

President

"V .Date

Date

Date

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