mirabeau family learning center, inc.app1.lla.la.gov/publicreports.nsf/8e67bb1fb0d6879a...mirabeau...

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R E P O R T

MU^BEAU FAMILY LEARNING CENTER, INC. AND rrS CONSOLIDATED SUBSIDIARY

DECEMBER 31, 2010

Under provisions of state law, this report is a public documeni Acopy of the report has been submitted 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 SEP 1 k 2011

MIRABEAU FAMILY LEARNING CENTER, INC. AND ITS CONSOLIDATED SUBSIDIARY

DECEMBER 31, 2010

INDEX PAGE

INDEPENDENT AUDITOR'S REPORT I - 2

FINANCIAL STATEMEN rS:

Statement of Financial Position 3

Statement of Activities 4

Statement of Functional Expenses 5

Statement of Cash Flows 6

Notes to Financial Statements ^ 7-12

SUPPLEMENTARY INFORMATION:

Consolidating Statement of Financial Position 13

Consolidating Statement of Activities 14

Combining Statement of Financial Position -Mirabeau Family Learning Center, Inc 15

Combining Statement of Activities -Mirabeau Family Learning Center, Inc 16

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MA^FTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 17-18

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MAI ERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 19 - 20

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 21

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 22

SCHEDULE OF FINDEVGS AND QUESTIONED COSTS 23

SCHEDULE OF PRIOR AUDIT FINDINGS 24

Hufifi D U P L A N r i L lR . I I K A P M A N N , H O G A N & M A l U i K . l..L.V>.

WILLIAM C;.Sr,t\I.M.C.P.A. ^ ^~- -. , — - Min iAKLJ. O'ROURKE.r.P.A. CLIHOftDJ.CIfKIN.JR.C.P.A. ' ', DAV[DA.BI;RC;ARD.C.PA ^ ^ m [ j ̂ ^ ^ C B R n i l U D PUBLIC A C C O U N T A N T S 1.IM)SAVJ.CALUB.C.P.A..LL.C • • 1 I • I | ,VJ. DlIPLANTIEk JK, CPA. GL̂ Y L. DUPLANTIKR, C.P.A. " • L.J • • • (I91».1<J85) MFCHKLl-KH. CUNMNCHAM.C.P.A M •̂.MB^RS FELIX J. HRAP.MANN, JR. C.P.A. DENNIS W.DILLON. CPA. AMERICAN INSTIlUrK OK , ,. ' ' '*r; 'J!!^'"*. .,. ^ „ CRADVCLLQVD.IIJ.CP.,V CKRTIUKD PUBLIC ACCOLNT^VNTS WILLLVM R. "OGAN, JR., CPA

" " " SOCIKTVOFLAC P A'S (1920-19*6) ANNil.HEBERT.CP.A. Si.H,ii-. i * Ui-LA*..r.,v ̂ JA.MES MAiiER, JR.CPA. HKNHYL-SILVIA, C.P.A.. (1921-1999)

INDEPENDENT AUDITOR'S REPORT

June 28, 2011 Board of Directors Mirabeau Family Learning Center, Inc. 6251 General Diaz Street, Suite B New Orleans, Louisiana 70124

We have audited the accompanying siatement ol' financial position of Mirabeau Family Learning Center, Inc. (a nonprotit organization) and its consolidated subsidiary as of December 31, 2010 and the related statements of activities, functional expenses and cash flows for the year then ended. These tinancial statements arc the responsibility of the Center'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, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations. Those standards and OMB Circular A-133 require that we plan and perfbmi the 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 the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audil provides a reasonable basis for our opinion.

In our opinion, the fmancial statements referred to above present fairly, in all material respects, the financial position of Mirabeau Family Learning Center, Inc. and its consolidated subsidiary as of December 31, 2010, and its changes in net assets and its cash flows for the year then ended in confonnity with accounting principles generally accepted in the United States of America.

1615 Poydras Street, Suite 2100 New Orleans, LA 70112 (504)586-8866- Fax (504) 525-5888

1670 Old Spanish Trai l Slidell. L A 70458 • (985)640-90%- Fax (985)649-9940

247 Corporate Drive Hounia, LA 70360 • (985) 868-2630 • Fax (985.) 872-3833

In accordance with Government Auditing Standards, we have also issued our report dated June 28, 2011, on our consideration ofthe Center's intemal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope ofour testing of intemal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results ofour audit.

Our audit was conducted for the purpose of forming an opinion on the basic financial siatements as a whole. The accompanying schedule of expenditure of federal award.s, as required by U.S. Office of Management and Budget Circular A-133, Audits of States. Local Governments, and Non-Profit Organizations, and the supplementary information on pages 13 - 16 arc presented for purposes of additional analysis and are not required parts of the financial statements. The schedule of expenditures of federal awards and the supplementary infomiation on pages 13 - 16 are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The infomiation has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such informalion directiy to the underlying accounting and olher records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with the auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards and the supplementary information on pages 13 - 16 are fairly stated in all material respects in relation to the financial statements taken as a whole.

^upla t t t im, SUapmann , Magati S. JHoAe^, ££S*

MIRABEAU FAMILY LEARNING CENTER, INC. AND ITS CONSOLIDATED SUBSIDIARY STATEMENT OF FINANCIAL POSITION

DECEMBER 3L 2010

ASSETS CURRENT ASSETS: Cash (Note 1) Accounts receivable:

Filmore Pare Apartments II (Note 2) MFLC Partners (Note 2) Smith Square Development (Note 2) St. Joe Estates 1 and II (Note 2) Other Total current assets

OTHER ASSETS: Loans receivable: (Note 2)

Filmore Pare Aparmients II MFLC Partners

Interest receivable: (Note 2) Filmore Pare Apartments 11 MFLC Partners

Investment in Filmore Pare Apartments 11 (Note 2) Investment in MFLC Partners (Note 2)

Total other assets

TOTAL ASSETS

548,313

244,309 160,194

12,656 234,186

1,504 1,201,162

1,575,000 2,200,000

132,541 188,331 167,913 125,006

4,388,791

$ 5,589,953

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES: Accounts payable and accrued expenses Due to Vales Development, L.L.C. (Note 2) Interest payable - Vales Development, L.L.C. (Note 2)

Total current liabilities

OTHER LIABILITIES: Investment in St. Joe Estates I and II (Note 2)

Total other liabilities

Total liabilities

NET ASSETS: Unrestricted

TOTAL LIABILITIES AND NET ASSETS

188,773 633,831

74,270 896,874

15 15

896,889

4,693,064

S 5,589,953

See accompanying notes.


STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31. 2010

PAGE 4

UNRESTRICTED NET ASSETS: REVENUE: (Note 1)

Donations Grant revenue Interest income Management fee income Miscellaneous income

Total revenue

EXPENSES: (Note 1) Program services (Page 5) Administrative and general (Page 5)

Total expenses

311 619,453 179,375

1,808 103

801,050

1,382,453 94,382

1.476,835

DECREASE IN UNRESTRICfED NET ASSETS (675,785)

Net assets at beginning ofyear 5,510,126

Prior Period Adjustment (Note 7) Net assets at beginning ofyear, as restated

NET ASSETS AT END OF YEAR

(141,277) 5,368,849

S 4,693,064



STA'fEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31,2010

PAGE 5

Program Services

Administrative and

General Total

EXPENSES: Accounting Contributions Development fee expense Housing assistance expense Insurance Interest Loss from investments in partnerships Miscellaneous Payroll taxes and benefits Professional services Project costs Rent and utilities Salaries Supplies

TOTAL EXPENSES

$ 29,373 5,000

453,200 588,160

1,150 -

67,917 11,995 26,085 13,385 47,462

7,938 122,972

7,817

$ 1,382,453

$ 2,554 -

-

-

100 75,917

-

1,043 2,268

-

-

690 11,129

680

$ 94,382

$ 31,927 5,000

453,200 588,160

1,250 75,917 67,917 13,038 28,353 13,385 47,462

8,628 134,101

8,497

$ L476.835



STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2010

PAGE 6

CASH FLOWS FROM OPERATING ACTIVITIES: Increase (decrease) in net assets Adjustments to reconcile increase in net assets to net cash provided by operating activities: Net loss from investments in partnerships (Increase) decrease in operating assets: Accounts receivable - Filmore Pare Apartments II Accounts receivable - MFLC Partners Accounts receivable - Smith Square Developmenl Accounts receivable - Other Interest receivable

Increase (decrease) in operating liabilities: Accounts payable and accrued liabilities Due to Vales Development, L.L.C. Interest payable - Vales Development, L.L.C.

Net cash provided by operating activities

$ (675,785)

67,917

403,417 504,874

(1,808) 4,625

(179,375)

33,205 165,735 74,270

397,075

CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from partnership withdrawal

Net cash provided by investing activities 5,716

15,716

CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from notes payable Payments on notes payable

Net cash provided by financing activities

230,754 (230,754)

NET INCREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents - beginning ofyear CASH AND CASH EQUIVALENTS - END OF YEAR

SUPPLEMENTARY CASH FLOW INFORMATION: Cash was paid for the following:

Interest

Income taxes

412,791 135,522

$ 548,313

$ 75,917

$


MIRABEAU FAMILY LEARNING CENTER, INC. AND ITS CONSOLIDATED SUBSIDIARY NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2010

NATURE OF OPERATIONS:

Mirabeau Family Learning Center, Inc. (the Center) is a neighborhood-based nonprofit organization committed lo strengthening personal, family and neighborhood self-reliance by providing education, training, affordable housing and support services to residents of New Orleans, Louisiana. The primary sources of revenue are federal grant income and fees related lo its affordable housing services.

The Center's subsidiary, MFLC Development, L.L.C, is a limited liability company formed to provide affordable housing development. Its primary source of revenue is development fee income.

1. SUMMARY OF SIGNIl^CANT ACCOUNTING POLICIES:

The accounting policies of Mirabeau Family Learning Center, Inc. and ils consolidated subsidiary conform lo accounting principles generally accepted in the United States of America (GAAP) as applicable to nonprofit organizations. The following is a summary of significant policies:

Principles of Consolidation:

The consolidated financial statements include the accounts of Mirabeau Family Learning Center, Inc. and its wholly-owned subsidiary, MFLC Development, L.L.C. All material inter-organization transactions have been eliminated.

Basis of Presentation:

I'he statement of activities presents expenses functionally between program services, fundraising and administrative. Those expenses which cannot be functionally categorized are allocated between functions based upon management's estimate of usage applicable to conducting those functions.

Ihe Center is required to report infomiation regarding its financial position according to three classes of nel assets: unrestricted net assets, temporarily restricted net assets and pernianentiy restricted net assets. Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Expirations of temporary restrictions on net asseis are reported as reclassifications between the applicable classes of net assets.

Basis of Accounting:

The financial statements reflect the accrual method of accounting in accordance with accounting principles generally accepted in the llnited Stales of America. Revenues are recognized in the period in which ihcy become due. Expenses are recognized in the period in which the related liability is incurred.


DECEMBER 31, 2010

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)

Statements of Cash Flows:

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

Donated Services:

No amounts have been reflected in the statements for donated services, as no objective basis is available to measure the value of such services.

Investments in Partnerships:

The Center's investments in various partnerships are accounted for on the equity melhod of accounting (cost, adjusted for the income or loss ofthe partnership).

RELATED PARTY TRANSACTIONS:

The Center and its consolidated subsidiary engaged in transactions during 2010 with the following related parties:

MFLC Partners, ALPIC

ITie Center is the managing general partner with an ownership percentage of .01% in MFLC Partners, ALPIC. Al December 31, 2010, the Center had an investment in MFLC Partners of SI 25,006. In 2010, the Center incurred a loss of S80 from MFLC Partners.

The Center was the developer for MFLC Partners' affordable housing project. At December 31, 2010, $134,675 was due to the Center from MFLC Partners for development fees eamed prior to 2010.

The Center also perfomied management services for MFLC Partners. At December 31, 2010, MFLC Partners owed the Center $26,319 for management fees incurred in 2008.

At December 31, 2010, $800 was due to MFLC Partners from the Center for various items.

During 2010, the Center provided $384,994 of housing assistance lo tenants residing in the apartment complex owned by MFLC Partners.


DECEMBER 31. 2010

2. RELA1 ED PARTY TRANSACTIONS: (Continued)

MFLC Partners. ALPIC (Continued)

In 2009, the Center executed an Act of Mortgage and a promissory note with MFLC Partners in the amount of $2,200,000. The loan bears interest at 4.58%, compounded annually, and is due in annual installments of principal and interest if there is sufficient cash flow as defined in the Amended and Restated Agreement of Limited Partnership of MFLC Partners. In no event will the outstanding principal and interest balances be due later than December 15, 2044. At December 31, 2010, the outstanding principal balance on the loan was $2,200,000 and the outstanding interest balance was $188,331. 'ITie Center obtained the hinds to loan to MFLC Partners from a federal grant passed through the City of New Orleans. The Center has assigned its rights and interests in the Act of Mortgage to the City of New Orleans.

Filmore Pare Apartments II

The Center is a general partner with an ownership percentage of .01% in Filmore Pare Apartments II. At December 31, 2010, the Center's investment in Filmore Pare Apartments II was $167,913. In 2010, the Center incurred a loss of $50 from Filmore Pare Apartments II.

The Center was the developer for Filmore Pare Apartments ll's affordable housing project. At December 31, 2010, $233,444 was due to the Center from Filmore Pare Apartments II for development fees eamed prior to 2010.

At December 31, 2010, $10,865 was due to the Center from Filmore Pare Apartments II for various items.

During 2010, the Center provided $203,166 of housing assistance to tenants residing in the apartment complex owned by Filmore Pare Apartments 11.

In 2009, the Center executed an Act of Mortgage and a promissory note with lulmore Pare Apartments II in the amount of SI,575,000. The loan bears interest at 4.58%, compounded annually and is due in annual installments of principal and interest if there is sufficient cash flow as defined in the Amended and Restated Agreement of Limited Partnership of Filmore Pare Apartments 11. In no event will the outstanding principal and interest balances be due later than December 15, 2044. At December 31, 2010, the outstanding principal balance on the loan was 51,575,000 and the outstanding interest balance was SI32,541. The Center obtained the iiinds to loan to Filmore Pare Apartments II from a federal grant passed through the City of New Orleans. The Center has assigned its rights and interests in the Act of Mortgage to the City of New Orleans.

MIRABEAU FAMILY LEARNING CENTER, INC. AND ITS CONSOLIDATED SUBSIDIARY NOTES TO Ffl^ANCIAL STATEMENTS

DECEMBER 31, 2010

2. RELATED PARTY TRANSACTIONS: (Continued)

Smith Square Development, ALPIC

The Center is the managing general partner with a .001% ownership interest in Smith Square Development, ALPIC. At December 31, 2010, the Center's investment in Smith Square Development was $0. The Center incurred no income or loss during 2010 ft"om its investment in Smith Square Development.

The Center perfonns management services for Smith Square Development. In 2010, the Center earned management fee income of $1,808. At December 31, 2010, $12,656 was due to the Center from Smith Square Development for management fees incurred in 2010 and prior years.

Moss Oaks Homes 1 and 11

The Center was the managing general partner with a .0153% ownership interest in both Moss Oaks Homes I and 11. During 2010, the Center withdrew from the partnerships and received a settiement of $15,716. The Center incurred a loss of $67,786 from its investment in Moss Oaks Homes I and 11 during 2010 since the receivable from the partnerships and the Center's investment in the partnerships exceeded the settlement received.

Vales Development, L.L.C. (formerly Filmore Pare, L.L.C.)

The Executive Director ofthe Center is the sole member of Vales Development, L.L.C. At December 31, 2010, SI0,047 was due from Vales Development, L.L.C for reimbursement of various expenses paid on the Center's behalf

The Center has sub-contracted with Vales Development, L.L.C. to provide the development services for MFLC Paitners' and Filmore Pare Apartments ll's affordable housing projects. During the year ended December 31, 2010, the Center incurred $453,200 of development fee expense for Vales Development, L.L.C to provide these services. At December 31, 2010, $491,480 was owed to Vales Development, L.L.C by the Center for the development services provided.

At December 31, 2010, $152,398 was owed to Vales Development, L.L.C. by the Center for predevelopment expenses paid on the Center's behalf in prior years. Also at December 31, 2010, S74,270 of interest on the expenses was owed to Vales Development, L.L.C.

PAGE


DECEMBER 31. 2010

2. RELATED PARTY TRANSACTIONS: (Continued)

St. Joe Estates I and U

MFLC Development, L.L.C. (the Center's wholly-owned subsidiary) is a limited partner with a .001%) ownership interest in both St. Joe Estates I and 11. At December 31, 2010, MFLC Developmenl, L.L.C.'s investment in St. Joe Estates I and II was S(15). MFLC Development, L.L.C. incurred no income or loss during 2010 ft*om its investment in St. Joe Estates 1 and 11.

MFLC Development, L.L.C. was the developer for the St. Joe Estates 1 and II affordable housing projects. At December 31, 2010, St. Joe Estates I and II owed $227,564 to MFLC Development, L.L.C. for development fees eamed prior to 2010.

At December 31, 2010, S6,622 was due to the Center ft^om St. Joe Estates I and II for reimbursement of various expenses.

3. LINE OF CREDIT:

1Tie Center has a S225,000 line of credit with Whitney National Bank. The line of credit is due on November 8, 2011 and bears interest at a variable rate. The line of credit is collateralized by a security interest in property ofthe Center. At December 31, 2010, there was no balance due on the line of credit.

4. USE OF ESTIMATES:

T̂he 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 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.

5. INCOME TAXES:

The Mirabeau Family Learning Center, Inc. is exempt from federal income taxes under Section 501(c) (3) ofthe Intemal Revenue Code. MFLC Development, L.L.C. was formed as a Limited Liability Corporation. Since it is wholly owned by the Center and furthers the Center's exempt purpose, the net income of MFLC Development, L.L.C. is included in the Center's exempt income tax retum and is also exempt from federal income tax.


DECEMBER 31. 2010

6. CONCENTRATIONS:

During December 31, 2010, the Center's main source of revenue was govemment grants. A significant reduction in the level of this support may have an effect on the Center's programs and activities.

7. PRIOR PERIOD ADJUSTMENT:

Net assets as of January 1, 2010 have been adjusted to accrue vacation eamed in prior years. The effect of this adjustment was to decrease net assets at January I, 2010 by $141,277 and decrease the change in net assets for 2009 by $10,192.

8. OFFICE RENT:

During 2010, the Center rented olTice space on a month-to-month basis. Total rent expense for 2010 was $8,450.

9. SUBSEOUENT EVENTS:

T̂he date to which events occurring after December 31, 2010, the date ofthe most recent statement of financial position, have been evaluated for possible adjustment to the financial siatements or disclosure is June 28, 2011, which is the date on which the financial statements were available to be issued. There were no significant subsequent events found as a result ofthe evaluation.

MIRABEAU FAMILY LEARNING CENTER, INC AND ITS CONSOLIDATED SUBSIDIARY

SUPPLEMENTARY INFORMATION CONSOLIDATING STATEMENT OF FINANCIAL POSITIO^

FOR THE YEAR ENDED DECEMBER 31, 2010

PAGE 13

CURRENT ASSETS: Cash and cash equivalents Accounts receivable:

Filmore Pare Apartments II MFLC Development, LLC MFLC Partners Smith Square Development St. Joe Estates 1 and II Other Total current assets

OTHER ASSETS: Loans receivable:

Filmore Pare Apartments II MFLC Partners

Interest receivable: Filmore Pare Apartments 11 MFLC Partners

Investment in Filmore Pare Apartments II Investment in MFLC Partners

Total other assets

TOTAL ASSETS

CURRENT LIABILITIES: Accounts payable Due to Vales Development, LLC Interest payable - Vales Development, LLC Due to MFLC Development, LLC Due to Mirabeau Family Learning Center, Inc.


Mirabeau Family

Learning Center, Inc.

548,313

244,309 149,597 160.194 12,656 6,622 1,504

1.123,195

1,575,000 2,200.000

132,541 188.331 167,913 125,006

4.388,791

.±m.m

188,773 633,831

74.270 8,642

905.516

MFLC Development,

L.L.C.

$

227,564

227.564

-

-

-

S, 227.564

S

140,955 140,955

Eliminations

$

(149,597)

(149.597)

-

-

-

S, (149.597)

$

(8,642) (140,955) (149,597)

Total

S 548,313

244,309

160,194 12,656

234,186 1,504

1,201,162

1,575,000 2,200,000

132,541 188,331 167,913 125,006

4.388,791

S 5.589.953

$ 188,773 633,831

74,270

896,874

OTHER LIABILITIES: Investments:

St. Joe Estates I and II MFLC Development, L.L Total other liabilities

.C. 4,859 4.859

15

15 (4.859) (4,859)

15

15

TOTAL LIABILITIES 910.375 140,970 (154.456) 896-889

NET ASSETS: Unrestricted 4,601,611 86.594 4,859 4.693,064

TOTAL LIABILTTIFS AND NET ASSETS S 5.511.986 S 227.564 $ ri49.597) S 5.589.953


SUPPLEMENTARY flSfFORMATlON CONSOLIDATING STATEMENT OF ACTIVITIES


PAGE 14

UTMRESTRICTED NET ASSETS: REVENUE:


Total revenue

EXPENSES: Accounting Contributions Development fee expense Housing assistance expense Insurance Interest Loss from investments in partnerships Miscellaneous Payroll taxes and benefits Professional services Project costs Rent and utilities Salaries Supplies

Total expenses

INCREASE (DECREASE) IN UNRESTRICTED NET ASSETS

Net asseis at beginning ofyear

Prior Period Adjustment Net assets at beginning ofyear, as restated

NET ASSETS AT END OF YEAR

Mirabeau Family

Learning Center. Inc.

311 619,453 179,375

1,808 103

801,050

31,927 5,000

453,200 588,160

1,250 75,917 67,917 13,038 28,353 13,385 47,462

8,628 134,101

8,497 1,476,835

(675,785)

5,418,673

(141,277) 5,277,396

S 4.601.611 S,

MFLC Development,

L.L.C. Eliminations

86.594 4,859

Total

311 619,453 179,375

1,808 103

801,050

31,927 5,000

453,200 588,160

1,250 75,917 67,917 13,038 28,353 13,385 47,462

8,628 134,101

8,497 1,476,835

86,594

86.594 S

(675,785)

5,510,126

i_ (141,277) 4,859 5,368,849

4.859 S 4.693.064


SUPPLEMENTARY INFORMATION COMBINING STATEMENT OF FINANCIAL POSITION

MIRABEAU FAMILY LEARNING CENTER, INC FOR THE YEAR ENDED DECEMBER 31, 2010

PAGE 15

CURRENT ASSETS: Cash and cash equivalents Accounts receivable:

Filmore Pare Apartments \\ MFLC Developmenl, LLC MFLC Partners Smith Square Developmenl St. Joe Estates 1 and II Vales Development. LLC Olher

Due from other funds Total current assets

OTHER ASSETS: Loans receivable

Filmore Pare Apartments II MFLC Partners

Interest receivable Filmore Pare Apartments 11 MFLC Partners

Investment in Filmore Pare Apartments II Inveslnienl in .MFLC Partners

Total olher assets

TOTAL ASSETS

CURRENT LIABILTTIES: Accounts payable and accnied expenses $ Due to Vales Development, LLC Interest payable - Vales Development, LLC Due to MFLC Partners Due to MFLC Development, LLC Due lo other funds


OTHER LIABILITIES: Investments:

MFLC Development, L.L.C. Total other liabilities

TOTAL LIABILITIES

NET ASSETS (DEFICIT): Unrestricted

TOTAL LIABILITIES AND NET ASSETS $

General Fund

; 548,313

7,069 149,597

6,622 10,047 1,504

723-152

-

_

; 72.L152

188,773

9,477

955-170 1,153.420

_

1.153,420

(430.268)

723.152

Real Estate Fund

S

237,240

169,671

12,656

955.170 1,374.737

1,575,000 2,200,000

132,541 188,331 167,913 125.006

4.388.791

$ 5.763.528

$ 643,878

74,270

8.642

726-790

4,859 4,859

731.649

5,031,879

S 5.703.52S

Eliminations

S - S

(9.477)

(10,047)

(955,170) (974.694)

-

S (974,694). $_

$ - $ (10,047)

(9,477)

(955.170) (974.694)

_

(974,694)

S ^974.694^ %

Total

548,313

244.309 149.597 160,194 12,656 6,622

L504

1,123,195

1,575,000 2.200,000

132,541 188,331 167.913 125,006

4,388,791

5.511.986

188,773 633,831

74,270

8,642

905,516

4,859 4.859

910.375

4.601,611

5 511 986


SUPPLEMENTARY INFORMATION COMBINING STATEMENT OF ACTIVITIES -

MIRABEAU FAMILY LEARNING CENTER, INC. FOR THE YEAR ENDED DECEMBER 31, 2010

PAGE 16

UNRESTRICTED NET ASSETS: REVENUE:


Total revenue

EXPENSES: Accounting Contributions Development fee expense Housing assistance expense Insurance Interest Loss from investments in partnerships Miscellaneous Payroll ta.xes and benefits Professional services Project costs Rent and utilities Salaries Supplies

Total expenses

INCREASE (DECREASE) IN UNRESTRICTED NET ASSETS

Net assets al beginning ofyear

Prior Period Adjustment

Net assets at beginning ofyear, as restated

NET ASSETS (DEITCTT) AT END OF YEAR

General Fund

Real Estate Fund

311

103 414

^89,635

(289,221)

230

(141,277)

(141,047)

800,636

1,187,200

(386,564)

5,418,443

5,418,443

Total

311 619,453 179,375 1,808

-

619,453 179,375 1,808 103

801,050

31,927 5,000

-

-1,250 1,647

-9,385

28,353 13,385 47,462 8,628

34,101 8,497

--

453,200 588,160

-

74,270 67,917 3,653

-

-----

31,927 5,000

453,200 588,160

1,250 75,917 67,917 13,038 28,353 13,385 47,462 8,628

134,101 8,497

1,476,835

(675,785)

5,418,673

(141,277)

5,277,396

$ (430,268) $ 5.031,879 $ 4,601,611

\VILLIA.M G. STA.MM. C.E'.A. CUFFORDJ.CirnN-JK. C.P.A. DAVID A. BURGARP. C.P.A. Lr.NnSAV J. CALIJB. C.P.A., L.L.C. GUY L. DlJPL,\Mlf.R,C.P.A. .MICHELLE H. CUNMNGH.Wl.CPA DENMS W. DFI.LON. C.P.A. GRADY C.I-LOVD.tH.C.P.A.

ANMi. ilKBKRT.CPA. HENRY U SILVIA, C.P.A..

din D U P L A N r i l l R , l - I K A P M A N N ,

H O G A N & M A I I E R . L . L . P .

C l i K T i r i R D P U B L I C A C C O U N ' r A N T S

MEMBKKS AMERICVN I.VSl ITIJTE OK

CERTIFIED PUBLIC ACCOirNTA.VlS SOCIETY OK LA C.P..\."S

MICHAEL J. O'ROCRKE, C.P.A.

A.J. DUPLANTIER JR, C.P.A. (I9I9-198,*;)

KELLX J. HRAPM.\NN, JR. C.P.V (1<)19-1Q«0)

WILLIAM R.HO(;/\N,JR.,CPA (1920-I99ht

J/VMES .MAHER, .IR, C.P.A. (19Z1-I999)

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTESfG AND ON COMPLIANCE AND OTHER MATTERS BASED

ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

June 28, 2011 Board of Directors Mirabeau Family Learning Center, Inc.

We have audited the financial statements of Mirabeau Family Learning Center, Inc. (the Center) as of and for the year ended December 31, 2010 and have issued our report thereon dated June 28, 2011. We conducted our audit in accordance wilh auditing standards generally accepted in the United Slates of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United Slates.

Intemal Control Over Financial Reporting

In planning and performing our audit, we considered the Center's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but nol for the purpose of expressing an opinion on the effectiveness of the Center's internal control over financial reporting. Accordingly, wc do not express an opinion on the effectiveness ofthe Center's intemal control over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, lo prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the financial statements will not be prevented, or detected and corrected on a timely basis.

1615 PoydrasSircct,Suilc2100 New Orleans. LA 70112 • {504)586-8866- Fa.\ (504) 525-5888

1670 Old Spanish Trai l Slidell. LA 70458 • (985) 649-'>9% • Fax (985)649-9940

247 Corporate Drive Houma. LA 70360- (985)868-2630- Fax (985) 872-3833

vvww.dhlinicpa.coiTi

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

Compliance and Other Matters

As part of oblaining reasonable assurance about whether the Center's financial statements are free 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 determination of financial statement amounts. However, providing an opinion on compliance with those provisions was nol an objective of our audit and, accordingly, we do nol express such an opinion. The results ofour tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

This report is intended solely for Ihc infomiation and use of the Board of Directors and management of Mirabeau Family Learning Center, Inc., and the Legislative Auditor ofthe State of Louisiana and federal awarding agencies and is not intended to be and should not be used by anyone olher than these specified parties. Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as public document.

SupioittieK, SOiaptnann, Magun <Si MaAm, ££3*

WILLI A.M r;. STA%L\L C.P.A. CLIKKORD J. GIFFIN. JR, C.P-A. DAVID A. BURG<VRD, C.P.A. LINDSAY J. CALUB. C.P.A., 1-L.C. GUY L. DUPI,A^T1EH, C.P.A, .MICHELLE 11. CUNMNGMrVM,C.P.A DENNIS W. DILLON.C.P.,\, GR.\DY C. LLOYD, JM. CP-.V-

tnUM .VNNM.HEBERT, C.P.A. HE.N'RV LSILVLV C.P.A..

D U P L A N r iF .R. H R A P M A N N , HOCJAN & M A I I E R . L .L .P .

CERTIFIRD PUBLIC ACCOUNTANTS

.ME.MKKRS AMERICAN INSl ITUTE OK

CERTIFIED PUBLIC ACCOITST.VNTS SOCIETY OF LA C.P.A.'S

MICHAEL J. O'ROURKE, C.P-A.

A.J. DUPL,\NTIER JR,C.P.-V (I9I9-I985)

FELLKJ. IIRAPMANN, JR.C.P.A. (1919-19901

WI|,LIA.M R. HO(;AJN, JR.CPA (1920-1W61

JA.MES MAHER, JR. C.P.A. (1921-1999)

INDEPENDENT AUDTTOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND

MATERIAL EFFECT ON EACH MA.IOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE

IN ACCORDANCE WITH OMB CIRCULAR A-133

June 28, 2011 Board of Directors Mirabeau Family Learning Center, Inc.

Compliance

We have audited the compliance of Mirabeau Family Learning Center, Inc. (the Center), with the types of compliance requirements described in the U.S. Ojfice of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on each ofthe Center's major federal program for the year ended December 31, 2010. The Center's major federal program is identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance wilh the requirements of laws, regulations, contracts and grants applicable to its major federal program is the responsibility of the Center's management. Our responsibility is to express an opinion on the Center's compliance based on our audiL

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A-133, Audits of States. Local Governments, and Nonprofit Organizations. Those standards and OMB Circular A-133 require that we plan and perfomi the audil to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Center's compliance with those requirements and perfomiing such other procedures as we considered necessary in tlie circumstances. We believe that our audil provides a reasonable basis for our opinion. Our audit docs nol provide a legal detemiination on the Center's compliance with those requirements.

1615 PoydrasStreet.Suitc 2100 New Orleans, LA 70112 • (504)586-8866- Fax (504) 525-5888 1670 Old Spanish Trail Slidell, LA 7045S - (985) 649-9996 • Fax (985)649-9940 247 Corporate Drive Houma. LA 70360 • (085)868-2630- Fax (985) 872-3833

w\v w. d hhmcpa.coin

In our opinion, Mirabeau Family Leaming Center, Inc. complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on ils major federal program for the year ended December 31, 2010.

Intemal Control Over Compliance

The management of the Center is responsible for establishing and maintaining effective intemal control over compliance with the requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the Center's intemal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on intemal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of intemal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Center's intemal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of perfonning their assigned fiinclions, to prevent, or detect and correct, noncompliance wilh a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in intemal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.

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

This report is intended solely for the infonnation and use of the Board of Directors and management of Mirabeau Family Learning Center, Inc. and federal awarding agencies and is not intended to be and should not be used by anyone olher than these specified parties.

S)uplantie/c, SiHopmantt, Mogan <Si Mafie^, £ £ 3 *

MIRABEAU FAMILY LEARNING CENTER, INC. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


PAGE 21

Federal CFDA

Number Grant No. Program T\i\e

U.S. Department of Housing and Urban Development

Passed through the City of New Orleans:

14.182 None Section 8 - New Constmction and Substantial Rehabilitation

Expenditures

$588.160

MIRABEAU FAMILY LEARNING CENTER, INC. NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

The Schedule of Expenditures of Federal Awards of Mirabeau Family Leaming Center, Inc. has been prepared in conformity with accounting principles generally accepted in the United Stales of America. Expenditures are recognized when incurred.

DETRRM1NA1 ION OF TYPE A AND B PROGRAMS:

Federal awards programs are classified as either Type A or Type B programs. For the year ended December 31, 2010, Type A programs consist ofthe federal programs that expended over $300,000 and Type B programs are the programs that expended under $300,000.

MIRABEAU FAMILY LEARNING CENTER, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS


PAGE 23

SUMMARY OF AUDITOR'S RESULTS:

Financial Statements

Type of auditor's report issued: unqualified

Intemal control over financial reporting:

Material weakiiess(es) idenlified? Control deficiencies identified that are nol

considered to be material weaknesses?

Noncompliance material to financial statements noted?

Federal Awards:

Internal control over major programs:

* Material weakness(es) identified? * Control deficiencies identified that are not

considered to be material weaknesses?

Type of auditor's report issued on compliance for major programs:

Any audit findings disclosed that are required to be reported in accordance wilh section 510(a) of Circular A-133:

Identification of major program:

Name of Program

Section 8 - New Construction and Substantial

Rehabilitation 14.182

Dollar threshold used lo distinguish between 'Type A and Type B programs:

Auditee qualified as low-risk auditee?

yes

yes

yes

X no

X none reported

X no

yes

yes

unqualified

yes

:X_ no

X none reported

CFDA No.

yes

X no

Expenditures

;S 588.160

$ 300,000

X no

FINDINGS REQUIRED TO BE REPORTED UNDER GOVERNMENTAL AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA:

NONE

FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS:

NONE

MIRABEAU FAMILY LEARNING CENTER, INC. SCHEDULE OF PRIOR AUDIT FINDINGS


PRIOR AUDIT FINDTNGS:

NONE

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