west baton rouge parish council on aging, inc....west baton rouge council on aging, inc. port allen,...

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FINANCIAL REPORT

West Baton Rouge Council on Aging, Inc. Port Allen, Louisiana

June 30,2010

Under provisions of state law, this report is a public document. Acopy ofthe 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 ^ U ^ 11

Michael R. Choate & Company CertiOed Public Accountants

FENANCLVL REPORT


June 30,2010

TABLE OF CONTENTS

Financial Report


June 30,2010

1. MANAGEMENTS DISCUSSION AND ANALYSIS 1

2. INDEPENDENT AUDITOR'S REPORT 9

3. BASIC FINANCIAL STATEMENTS

GOVERNMENT WIDE FINANCIAL STATEMENTS:

A Statennent of Net Assets 11

B. Statement of Activities 12

FUND FINANCIAL STATEMENTS:

C. Balance Sheet 13

D. Statement of Revenues, Expenditures and Changes in Fund Balances 14

E. Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Govemmental Funds to the Statement of Activities 15

F. NOTES TO THE FINANCIAL STATEMENTS 16

4. SUPPLEMENTARY FINANCIAL INFORMATION REQUIRED BY GASB STATEMENT 34:

• Budgetary Comparison Schedule - General Fund 25

• Budgetary Comparison Schedule - Title III B Fund 26

• Budgetary Comparison Schedule - Title III C-1 Fund 27

• Budgetary Comparison Schedule - Titie III C-2 Fund 28

• Budgetary Comparison Schedule- Millage 29

5. SUPPLEMENTARY FINANCIAL INFORMATION REQUIRED

BYGOEA:

• Schedule of Non-major Special Revenue 31

• Comparative Schedule of General Fixed Assets and Changes in General Fixed Assets 32

6. REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 33

7. CORRECTIVE ACTION TAKEN ON PRIOR YEAR FINDINGS 35

MANAGEMENT'S DISCUSSION AND ANALYSIS

West Baton Rouge Council on Aging, Inc.

The "Management's Discussion and Analysis" of the West Baton Rouge Council on Aging, Inc.'s (the Council) financiat performance presents a narrative overview and analysis of the Council's financial activities for the year ended June 30, 2010. Tills report highlights the current year's activities, resulting changes, and relevant facts. Please read this report in conjunction with basic financial statements, which follow this section.

FINANCIAL HIGHLIGHTS (see condensed statements on page 7)

Here are the financial highligfits:

The Council's assets exceeded its liabilities at the close of fiscal year 2010 by $629,992 (net assets) which represents a 27.5% increase from last fiscal year.

Cash was $670,135 at June 30,2010 compared to $522,441 at June 30.2009. This is an increase of $147,694 or 28%.

The Council's revenue increased $56,432 (or 6.8%) primarily due to an increase in property taxes of $52,988 and a net grant increase from Governor's Office of Elderly Affairs of $5,805. Other revenue decreased $2,361.

The Council's expenditures increased, $89,993 (or 13.6%) primarily due to an increase in personnel costs of $38,912, an increase in meals of $21,854, increase in services and supplies of $20,022, an increase in senior activities of $5,506 and an increase in accrued compensation.

As a result of subtracting total expenditures from total revenue, the Council's net assets increased by $135,925 this fiscal year. Last year the net assets increased $169,486.

OVERVIEW OF THE FINANCIAL STATEMENTS - What's Included

This discussion and analysis is intended to serve as an overview to the Council's basic financial statements. The Council's annual report consists of five parts: (1) management's discussion and analysis (this section) (2) basic financial statements (3) required supplementary infomiation, and (4) the optional section that presents combining statements for non-major govemmentai funds and other supplementary information and (5) various govemmental compliance reports and schedules by certified public accountants and management. The basic financial statements include two kinds of statements that present different views of the Council:

Government-wide Financial Statements

The government-wide financial statements (see Exhibits A and B) are designed to provide readers with a broad oven/iew ofthe Council's finances, in a manner similar to a private sector business. The statement of net assets presents information on all ofthe Council's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Council is improving or deteriorating. The statement of activities presents information showing how the Council's net assets change during each fiscal year (revenues less expenditures). All changes in net assets are reported as soon as the financial transaction occurs regardless ofthe timing ofthe related cash flows. Thus, revenues and expenditures are reported in this statement this fiscal year even though the resulting cash flow is in future fiscal years. The governmental activity of the Council is health and welfare which is comprised of various programs that include supportive services, nutritional services, utility assistance disease prevention, caregiver support and a multipurpose senior center in Port Allen, Louisiana.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. All of the fiinds of the Council are governmental funds.

Govemmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the govemment-wide financial statements, govemmental fund financial statements focus on current year inflows and outflows of cash, as well as on balances of spendable resources available at the end of the fiscal year. Both the governmental fund balance sheet and the govemmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to help with this comparison between govemmental funds and govemmental activities. (Exhibit D and E) The Council has presented the General Fund, Title I I I B - Supportive Services Fund, Title ill C-1- Congregate Meals Fund. Title 111 C-2 - Home Delivered Meals Fund, Millage Fund and Senior Center Fund as major funds. (Exhibit C & D) All non-major governmental funds are presented in one column, titled Total Non-Major Funds". Combining financial statements ofthe non-major funds can be found in the Combining Fund Statements that follow the basic financial statements (Page 31).

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding ofthe data provided in the govemment-vvide and fund financial statements. The notes to the financial statements can be found in Exhibit F of this report.

Other Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary infonnation that further explains and supports the information in the financial statements. The Governmental Accounting Standards Board (GASB) Statement No. 34 requires budgetary comparison schedules for the General Fund and each major Special Revenue Fund that has a legally adopted budget (Pages 25 to 29). In addition to these required elements, the Council has a section of supplementary infonnation. The Governor's Office of Elderly Affairs (GOEA) has required the Council to present combining statements that provide details about our non-major governmental funds and details about capital assets and the changes in capital assets. This information will be used by GOEA to verify the accuracy of infonnation submitted to them during the year and to help monitor certain compliance requirements set forth in the grants that it has with the Council (Page 31 and 32).

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted eariier, net assets serve as a useful indicator of the Council's financial position. As of June 30,2010, assets exceeded liabilities by $629,992. A large portion ofthe Council's net assets (106%) reflects its cash position. The Council has a strong cash position.

Special Revenue Fund Budgetary Highlights

The budget was amended one time during the year. The primary reasons for amending the budget were to comply with the Council's grants for GOEA due to unanticipated changes in expenditures.

During the year, actual expenditures differed from budgetary estimates. Required supplementary information budgetary comparison schedules were prepared for the General Fund and each major Special Revenue Fund (Page 25 to 29).

CAPITAL ASSETS

The Council's investment in capital assets for its governmental activities as of June 30,2010, amounts to $14,512 (net accumulated depreciation). This investment in capital assets includes office furniture, fixtures, vehicles, machinery and equipment (see table below).

2010 2009 Office fumiture, fixtures

and equipment $ 2,281 $ 2,281 Vehicles 150,196 150.196

s 2,281 150,196

152.477

(137,965)

$ 14,512

Subtotal 152.477 152,477

Less accumulated depreciation (137,965) (133,986)

Totals $ 14.512 $ 18,491

Additional information on the Council's capital assets can be found in the Note 1 (C) and 7, Exhibit F of this report.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES

The Council receives most of its funding from local property taxes. Additional funding is from federal and state agencies. Because of this, the source of income for the Council is consistent. However, some of the Council's grants and contracts are contingent upon the level of sen/ice provided by the Council, and therefore, those revenues are not fixed. There have been no significant changes to the funding levels or terms of the grants and contracts. The Govemor's Office of Elderiy Affairs (GOEA) has approved the Council's budget for fiscal year 2010-2011. There are no plans to add any significant programs for next fiscal year.

The Executive Director and Board of Directors considered the following factors and indicators when setting next year's budget, rates, and fees. These factors and indicators include:

• Actual expenditures from previous fiscal year in relation to expected needs in the current year.

• Consideration of funding to be received from GOEA. • The Ad Valorem Tax revenue budgeted represents the estimated

amount ofthe October 2010 assessment, which the Council will receive, for the most part, in January 2011.

• Interest revenues have been budgeted as decreasing. • Salaries and benefits are based on the number of employees

needed to perform necessary services and the related benefits. • Travel rates in accordance with state travel regulations. • Services the Council will provide along with estimated service

costs. • Estimate of operation supplies needed to perfomi necessary

services. • Detail plan of equipment needed to be purchased. • Vehicle insurance based on quotes and contracts.

REQUESTS FOR INFORMATION

This financial report is designed to provkje a general overview ofthe CounaTs finances for all interested in the Council's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to:

Board of Directors Susan Devecka West Baton Rouge Council on Aging, Inc. P.O. Box 122 Port Allen, Louisiana.70767 Phone (225) 383-0638

Condensed Statements of Net Assets June 30.

Cash Other cunent assets Capital assets

Total assets

2010 $ 670,121

5,980 14.512

$ 690.613

2009 $ 522,441

2.728 18,491

$ 543.660

$

Dollar Change

147,680 3.252

(3.979)

146.953

Accounts payable Accrued compensation

Total liabilities

16,686 43.949

17,890 31,703

60.635 49.593

(1.204) 12.246

11.042

Net Assets: Invested in capital assets, net Restricted Unrestricted Total net assets

14.512 610.199

5.281

18,491 470,337

5.239

(3,979) 139,862

42

$ 629.992 $ 494.067 $ 135,925

Governmental Activities Govermnental activities increased the Council net assets by $135,925. Key elements of this increase are as follows:

Condensed Changes in Net Assets

Revenues:

program revenues:

Operating grants and contribu^ons

General revenues: Property taxes &Bnts and contributions not restricted

Unrestricted investntent eamings Misceilaneuis

Total revenues

Expenses:

Health and welfors

Total expenses

Incraase (decrease) in net assets

Net assets beginning of year

Net assets end of year

$

$

June 30,

2010

92.767 $

749,649 40,600

977 1,432

885,425

749.500

135,925 494,067

629.992 $

2009

86,962 $

696,661

40,600 2.719 2,051

828.993

659,507

169,486

324.581

494.067 £

Dollar

Change

5.finS

52.988

-(1.742)

(619)

56,432

89,993

(33.561) 169.486

135,925

Total

Percent

Change

6.7%

7.6%

0.0% -64.1% -30.2%

§^%

13.6%

FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS

As noted earlier, the Council uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds

The focus ofthe Coimcil's governmental funds is to provide information on current year inflows, outflows, and balances of spendable cash and other resources. Such information is useful in assessmg the Council's cash flow requirements. In particular, unrestricted fund balance at year end may serve as a useful measure of a government's net resources available for spending next fiscal year. As ofthe end ofthe current fiscal year, the Council's govemmental funds reported combined ending fimd balances of $659,429, an increase of $152,152 in comparison with the prior year. An imreserved fund balance of $502,727 is available for spending at the Council's discretion. This includes fee Millage Fund. The remainder of fUnd balance is reserved to indicate that it is not available for new general spending because it has aheady been committed. This is reflected in Exhibit C.

The General Fxmd is the unrestricted operating fund ofthe Council. At the end ofthe current fiscal year, unreserved fimd balance ofthe general fimd was $5,281, while total fund balance reached $659,429 (Exhibit C). The fimd balance ofthe Council's General Fund increased by $42 dining the current fiscal year. (Exhibit D)

Other major funds, including Title III B - Supportive Services Fund and Title III C-2 -Home Delivered Meals Fund and Title III C-l Cot^egate Meals had a no change in fimd balances. These funds are reimbursed by federal and state grants. Expenditures that are not covered by the grants are covered by transfers fit)m the General Fund and Miiiage Fund.

MICHAEL R . C m m & COMPAINY. CPAS A P R O F E S S I O N A L C O B P O R A T I O N

2915 S. Sbetwood Forest Blvd., Suite B Baton Rouge. LA 70816 (225) 292-7434 www.dioatecpa.com Pax (22S) 293-3651

The Vilh^ Executive OfSce Suites 2895 Hwy. 190. Suite 230 MandeviUo,lA 70471 (985)674-9092 Fax{985)727-<701

Independent Auditor^s Report

West Baton Rouge Council on Aging, Inc. Port Allen, Louisiana, USA

We have audited the accompanying financial statements ofthe govemmental activities, each major fund, and the aggregate remaining fimd information of the West Baton Rouge Council on A ^ g , Inc. as of and for the year ended June 30, 2010, which collectively comprise the Council's financial statements as listed in the table of contents. These financial statements are the responsibility of the West Baton Rouge Council on Aging's management. Our responsibility is to express opmions on these financial statements based on oui* audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtam reasonable assurance about whether the financial statements are Gree 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 audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, m all material respects, the respective financial position of the govemmental activities, each major fimd, and the aggregate remaining fund infonnation of the West Baton Rouge Council on Aging, Inc., as of June 30, 2010, for the year then ended in conformity with accounting principles generally accepted in the United States of America.

http://www.dioatecpa.com

The accompanying required supplementary information, such as "Management's Discussion and Analysis" and "Budgetary Comparison Information" are not a required part ofthe basic fmancial statements but are supplementary information required by accountmg principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.

In accordance with Government Auditing Standards, we have also issued our report dated November 8, 2010, on our consideration of West Baton Rouge Council on Aging, Inc.'s intemal control over financial reporting and our tests of its compliance with certmn pro^dsions of laws, regulations, contracts and grants. That report is an integral part of an audit performed m accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the West Baton Rouge Council on Aging's financial statements. The accompanying supplementary information, as described in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information, have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Michael R Choate & Company CPAs

November 8,2010

10

GOVERNMENT WIDE FINANCIAL STATEMENTS

Exhibit A

GOVERNMENT WIDE STATEMENT OF NET ASSETS

WEST BATON ROUGE COUNCIL ON AGING, INC PORT ALLEN, LOUISIANA

June 30,2010

Assets Cash Grants and contracts receivable Capital assets, net of accumulated depreciation

Governmental Activities

$670,121 5,980

14,512

Total Assets $ 690,613

Liabilities Accounts payable Accmed compensated absences

$ 16,686 43,949

Total Liabilities 60,635

Net Assets Invested in Capital Assets Restricted for:

Utility Assistmice Millage

Unrestricted

14,512

4,552 605,647

5,281

Total Net Assets $ 629,992

The accompanying notes are an integral part of this statement 11

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Exhibit E

Reconciliation ofthe Statement of Revenues, Expenditures and Changes in Fund Balances of Govemmental

Funds to the Statement of Activities West Baton Rouge Council on Aging, Inc.

Port Men, Louisiana

Year Ended June 30,2010

Net Increase (Decrease) in fiind balances - total govenuoental funds $ 152,150

Governmental fimds report capital outlays as ejq^enditures. However, in the Statement of Activities the cost of these assets is allocated ov^ their estunated useful lives and reported as depreciation expense. This is the amount by which capital outlays $0 di£fers from depreciation ($3979) in the current period. (3,979)

Some Kq)enses reported in the Statement of Activities do not require tiie use of current financial resources and therefore are not reported as expenditures m govemmental funds:

Compensated absences (12.246)

Increase (Decrease) ofnet assets of govemmental activities $135,925

15

Exh ib i t F continued

NOTES TO FINANCIAL STATEMENTS


June 30. 2010

Note 1 - Summary Of Significant Accountino Policies

a. Statement of Presentation:

The accompanying financial statements confomi to generally accepted accounting principles for local government units as prescribed by Statement 1. Govemmental Accounting and Flnandal Reporting Principles published by the National Council on Govemmental Accounting, and Audits of State and Local Govemmental Units, the industry audit guide issued by the American Institute of Certified Public Accountants.

The local councils on the aging were created under Act No. 456 of 1964 for the welfare of the aging people in their respective parish.

b. Fund Accounting:

The accounts ofthe Council are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. Govemment resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The various funds presented in the financial statements in this report are as follows:

Governmental Fund tvoes

Govemmental funds are those through which most governmental functions ofthe Council are financed. The acquisition, use and balances ofthe Council's expendable financial resources and the related liabilities are accounted for through govemmental funds. The measurement focus is upon determination of changes in financial position, rather than upon net income determination. The following are the Council's governmental funds:

16

Exhibit F continued

Note 1 - Summafv Of Sionrficant Accounting Policies (continued)

Governmental Fund (continued):

General Fund - The General Fund is the general operating fund of the Council. It is used to account for all financial resources except those required to be accounted for in another fund.

Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments and major capital projects) that are legally restricted to expenditures for specified purposes. Most of the Council's special revenue funds are provided by GOEA. The Title 111 funds are provided by the United States Department of Health and Human Services - Administration on Aging through the Govemor's Office of Elderly Affairs which in tum "passes through" the funds to the Capital Area Agency on Aging and then to the Council.

The following are the funds which comprise the Council's Special Revenue Funds:

Malor Special Revenue Funds

A fund is considered major if it is the primary operating fund of the Council or it Its total assets, liabilities, revenues, or expenditures are at least 10% ofthe corresponding total for all funds of that category type.

Title Ill-B Supportive Services Fund

The Title Ill-B Supportive Services Fund is used to account for funds which are to provide a variety of social services; such as, information and assistance, access services, in-home services, community services, legal assistance, and outreach for people age 60 and older.

GOEA has established the criteria for defining a qualifying unit of service for each Title III program. Specific supportive social services, along with the number of units provided during the fiscal year, are as follows:

Units Information and Assistance Homemaker Recreation Transportation for people age 60 or older Utility Assistance Medical Alert

458 519

6806 11829

75 94

17

Exhibit F continued

Title III C-1 Fund

The Title III C-1 Fund Is used to account for funds which are used to provide nutritional, congregate meals to the elderiy in strategically located centers. The council served 11,314 meals this year.

Title III C-2 Home Delivered Meals Fund

Title III C-2 Fund is used to account for funds which are used to provide nutritional, home delivered meals to homebound older persons. The council delivered 45,385 meals this year.

Millage Fund

The Millage Fund is used to account for the revenue received from a West Baton Rouge Parish property tax. These funds significantly finance the Council's budget and activities.

Non Major Special Revenue Funds

Audit Fund The Audit Fund is used to account for funds received from the Govemor's Office of Elderly Affairs that are restricted to use as a supplement to pay for the cost of having an annual audit of the Council's financial statements.

Senior Center Fund The Senior Center Fund Is used to account for the administration of Senior Center program funds appropriated by the Louisiana Legislature to the (governor's Office of Elderiy Affairs, which in tum "passes through" the funds to the Council. This program provides community service centers at which older persons receive supportive services and participate in activities which foster their independence, enhance their dignity, and encourage their involvement in and with the community.

Title lll-D Fund The lll-D Fund Is used to account for funds used for disease prevention and health promotion activities of services, such as; (1) equipment and materials (scales to weigh people, educational materials, and exercise equipment), (2) home injury control, (3) medication management, (4) mental health, and (5) nutrition (assessment/screening, counseling, and education). The law directs the state agency administering this program to "give priority to areas of the state which are medically underserved and in which there are a large number of older individuals".

18

Exhibit F continued

Title III-E Fund The Titie III-E Fund Is used to account for funds which are used to provide continuing education services to assist individuals to acquire knowledge about sen/ices and/or care giving role and needs.

Supplemental Senior Center Fund The Louisiana Legislature appropriated additional money for various councils on aging through the state to be used to supplement the primary state grant for senior centers. West Baton Rouge Council on Aging, Inc. was one ofthe parish councils to receive a supplemental grant. These funds are "passed through" the Governor's Office of Elderly Affairs.

Utility Assistance Fund

The Utility Assistance Fund is used to account for the administration of programs that are sponsored by local utility companies. The companies collect contributions from service customers and employees and remit the funds directly to the Capital Area Agency on Aging (CAAA), which In turn remits funds relating to West Baton Rouge Parish to the Council. These funds are used to provide financial assistance to the elderly for the payment of their utility bills.

c. Capital Assets:

The accounting and reporting treatment applied to tiie capital assets associated with a fund are determined by its measurement focus. Capital assets are long-lived assets that have been purchased or acquired with an original cost of at least $1,000 and that have an estimated useful life of greater than one year. When purchased or acquired, these assets are recorded as capital assets in the Government-Wide Statement of Net Assets. In contrast, in the Fund Financial Statements, capital assets are recorded as expenditures of the fund that provided the resources to acquire the asset. If the asset was purchased, it is recorded in the books at its cost, if the asset was donated, then it is recorded at its estimated fair maricet value at the date of donation.

For capital assets recorded in the Govemment-Wide Financial Statements, depreciation is computed and recorded using the straight-line method for the assets estimated useful life. The estimated useful lives of the various classes of depreciable capital assets are as follows:

Building Improvements 20 years Equipment 5 -7 years Vehicles 5 years Computers 3 years

19

Exhibit F continued

Salvage values have not been estimated by management when calculating how much of an asset's cost needs to be depreciated except for vehicles. For that category or capital asset, management has used 10% of the vehicles initial cost as a salvage value estimate.

Depreciation is not computed or recorded on capital assets for purposes ofthe Fund Financial Statements.

d. Transfers:

Advances between funds which are not expected to be repaid are accounted for as ti^nsfers. In those cases where repayment is expected, the advances are accounted for as an asset or liability through the various due from and due to accounts.

e. Budget Policy:

Budgets for the programs are prepared by tiie Council's Executive Director and approved by the grantors and the Council's board of directors.

f. Compensated Absences:

For government wide financial statements, the Council's liability for accumulated unpaid vacation has been recorded. The liability has been detennined using the number of vested vacation hours for each employee multiplied by the employee's current wage rate at tiie end of the year. Accmed vacatbn benefits will be paid from fijture years' resources and will be recorded as fund expenditures in the various govemmental funds in the year in which they are paid or become due on demand to temiinated employees. The Council's sick leave policy does not provide for the vesting of sick leave where payment wouki have to be made to a terminated employee for any unused portion.

g. Management's Use of Estimates:

The preparation of financial statements in confonnity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates.

h. Revenue Recognition

Revenues are recorded in the Government-Wide Statements when they are eamed under the accrual basis of accounting. Revenues are recorded in the Fund Financial Statements using the modified accrual basis of accounting. In applying the susceptible to accrual concept using this basis of accounting, intergovemmental grant revenues, program service fees, and interest income usually both measurable and available. However, the timing and amounts of the receipts of public support and miscellaneous revenues are often difficult to measure; therefore, they are recorded as revenue in the period received.

20

Exhibit F continued

Note 2 - Board of Director's Compensation

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

Note 3 - In Kind Financial Assistance

The Council receives nominal financial assistance from the West Baton Rouge Parish government. However, facilities and land are owned by the Parish. No rent is charged under a 99 year lease agreement which expires December 31, 2097.

Note 4 - Economic Dependency

The Council receives a portion of its revenue from funds provided through grants administered by the Louisiana (Governor's Office of Elderly Affairs, and the Capital Area Agency on Aging-District II, Inc. The grant amounts are appropriated each year by the federal and state govemments. If significant budget cuts aro made at the federal and/or state level, the amount of funds the Council receives could be reduced and have an adverse impact on its operations. Management is not aware of any actions that will adversely affect the amount of funds the Council will receive in the next fiscal year.

Note 5 - Transfers

Transfers in and out are listed by fund type for the year ended June 30,2010:

Transfers Out

Transfers In Special Revenue Fund: Title III B Titie III C-1 Title III C-2 Utility Assistance Title III D General Fund

Total Transfers Out

Senior Center

$ 25,000 -----

$ 25,000

Sup Senior Center

$ 3.100 -----

$ 3.100

Millage Fund

$ 162,893 10,975

131,855 2,206

12.418 27.179

$ 347,526

General Fund

$ 37.500 ----

823

$ 38,323

Total Transfers In

$ 228,493 10,975

131,855 2,206

12,418 28,002

$ 413.949

2 1

Note 6 - General Fixed Assets

The changes in the general fixed asset account group are as follows:

Furniture and Equipment

Vehicles

Exhibit F continued

Balance 6/30/2009

$ 2.281

150.196

$152,477

Additions

$

-

$

Deletions

$

_

$

Balance 6/30/2009

$ 2,281

150.196

$152,477

Note 7 - Deposits With Financial Institutions

At June 30, 2010, The Council had bank balances totaling $670,135. Bank balances totaling $250,000 are insured by federal deposit insurance while deposits of $420,135 are collateralized by securities held by the depository bank in the Council's name. This is considered as "Category 1" credit risk in accordance with GASB Statement 3.

GASB Statement 3 categories deposits into three categories of credit risk: (

1. Insured by FDIC or collateralized with securities held by the Council or by its agent in the Council's name. (Category 1)

2. Uninsured but collateralized with securities held by the pledging financial Institution's tmst department or agent in the Council's name. (Category 2)

3. Uninsured and uncollateralized; or collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Council's name; or collateralized with no written or approved collateral agreement (Category 3)

22

Exhibit F continued

Note 8 - Grants & Accounts Receivable

Accounts receivable at June 30,2010 included the following funds:

Special Revenue

Title IIIB Titie 111 C-1 Titie III D Titie C-2

2,809 917

1,319 935

Total $ 5,980

Note 9 - Income Tax Status

The Council, a non-profit corporation, is exempt from federal income taxes under Section 501(C)(3) ofthe Intemal Revenue Code.

23

SUPPLEMENTARY FINANCIAL INFORMATION

Required by GASB 34

24

SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES BUDGET (GAAP BASIS) AND ACTUAL

GENERAL FUND

WEST BATON ROUGE COUNCIL ON AGING, INC. PORT ALLEN. LOUISIANA

FOR THE YEAR ENDED JUNE 30,2010

REVENUES

Ad valorem taxes Intergovemmental:

Caprtal Area Agency on Aging District 11, Inc. State of Louisiana

Other: Miscellaneous Contributions Investment Income Contributions in Kind

Total Revenues

EXPENDITURES Current

Expenditures in Kind Personnel Operating services Operating supplies Meals Travel Capital outiay Utility assistance Other

Total Expenditures

Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES USES

Operating transf^s in Operating transfers out

Excess (deficiency) of revenues and oUier sources

over expenditures and ottier uses

BUDGETS ORIGINAL

$

-37,500

--

1,000 -

38,500

----. ----

.

38,500

-(38.500)

$

$

$

FINAL

-37.500

• _

1.000 -

38.500

----. _ • --

38.500

_

(38.500)

-

ACTUAL

$

-37.500

1,432 -

978 -

39.910

-----_ --

29.546

29.546

10,364

28,002 (38,324)

$ 42

FAVORABLE (UNFAVORABLE)

VARIANCE

$

--

1.432

(22) -

1.410

-----. --

(29,546)

(29.546)

(28.136)

28,002 176

$ 42

25

SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES BUDGET (GAAP BASIS) AND ACTUAL SPECIAL REVENUE FUND - TITLE lll-B

WEST BATON ROUGE COUNCIL ON AGING, INC. PORT ALLEN, LOUISIANA

FOR THE YEAR ENDED JUNE 30.2010

REVENUES

Ad valorem taxes Intergovernmental:

Capital Area Agency on Aging District l l. Inc. State of Louisiana

Other Miscellaneous Contributions pFoJed Care Contilbutions In Kind

Total Revenues

EXPENDITURES Cunent:

Expenditures in Kind Personnel Fringe Travel Operating services Operating supplies Meals Capital outlay Utility assistance Other

Total Expenditures



Operating transfers in Operating transfers out

Excess (deficiency) of revenues and other sources over expenditures and other uses

BUDGETS ORIGINAL FINAL

34.137

1.000

35.137

13.100

354.314

(319,177)

34,137

1.000

35.137

12.417

^ 9 J 2 9

(233,992)

319,177 233,992

ACTUAL

34,137

538

34.675


VARIANCE

$

11.089

263.168

(228,493)

228,493

(462)

i4g2i

181,617 56.487 849

96.681 5.580

151,762 39.242 830

59,588 5,290

167.484 41,689 1,551

34.858 16,497

(6.722)

(2.447) (721)

24.730 (11.207)

1.328

5,S6i

5.499

(5.499)

1.

26


SPECIAL REVENUE FUND -TITLE III C-1



REVENUES


Caprtal Area Agency on Aging District II, Inc. State of Louisiana

Ottier Miscellaneous Contilbutions Project Care Contributions in Kind

Total Revenues

EXPENDITURES Currenk

Expenditures in Kind Personnel Fringe Travel Operating services Operating supplies Meals Capital outiay Other

Total Expenditures



Operating ti^nsfers in Operating transfers out

Excess (deficiency) of revenues and other sources overexpendibjres and ottier uses


10,810

3,000

13,810

(20.025)

20,025

10,810

3,000

13,810

(18.180)

18.180

ACTUAL

10.810

4,435

15.245

13.173 15.008

33 3.837 533

1.251

33,835

10,794 14.525

39 4.527 629

1.476

31.990

10.877 11,084

117 2,944 401

817

26.220

(10.975)

10.976


VARIANCE

$

1.435

1.435

(83) 3.461

(78) 1.583

228

659

5.770

7.205

(7.205)

27


SPECIAL REVENUE FUND - TtTLE 111 0-2



REVENUES


Capital Area Agency on Aging District II. Inc. State of Louisiana

Other. Miscellaneous Contilbutions Project Care Contributions in Kind

Total Revenues

EXPENDITURES Current

Expenditures in Kind Personnel Fringe Operating sen/ices Operating supplies Meals Travel Capital outiay Utility assistance Otiier

Total Expendihires



Operating transfers in Operating ta^nsfers out

Excess (deficiency) of revenues and other sources over expenditures and otiier uses


4,422

1.000

5,422

(126,054)

126.054

ACTUAL

4,422

1,000

5.422

127.729

4.422

1.523

5.94S

55.205 29,313 11,508 1.598

30.000 100

3.752

131.476

43.290 26.478 12,475 1.733

45.000 108

4.067

133.151

50.759 19,507 8.757 1.197

54.799 350

2.431

137,800

(127.729) (131.855)

131,855


VARIANCE

$

523

523

(7.469) 6.971 3.718

536 (9,799)

(242)

1.636

i i 649 )

(4,126)

4,126

28

SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES BUDGET (GAAP BASIS) AND ACTUAL SPECIAL REVENUE FUND - MILLAGE



REVENUES


Caprtel Area Agency on Aging District II, Inc. State of Louisiana

Ottier: Miscellaneous Contributions Project Care Contributions in Kind

Total Revenues

EXPENOrrURES Cunent:

BqKndltures in Kind Personnel Fringe Operating sen/ices Operating suppGes Meals Travel Capital outiay Utility assistance Otiier

Total Expenditures

Excess of Revenues over (undei) Expenditures


Operating tiansfisrs in Operating transfers out

BUDGETS ORIGINAL

$ 670,701

-------

670.701

-110,851

6.873 35,000

-26,132

-12.000

-22.000

212.856

457,845

_ f414.871 >

FINAL

$ 666.337

-------

668.337

-165.342 29,949 70,000

-11.132

-12.000

-22.000

310.423

355,914

-

r328.955>

ACTUAL

$ 749.649

-------

749.649

-145,721 24,753 56.264 8.110

12.854 ---

2.313

250,015

499.634

_ f347.5261


VARIANCE

$ 83.312

-------

83.312

-19.621 5.196

13,736 (8.110) (1.722)

-12.000

-19.687

60,408

143,720

_ (20.355)

Excess (deficiency) of revenues and other sources over expenditures and otiier uses S 42.g74 s 26959 s i 52 ina ^ 123.3g5

29

SUPPLEMENTARY FINANCIAL INFORMATION

Required by: Governor's Office of Elderly Affairs

30

.a

a s

£s I

I 8 B I

«

' S

§

' 8

5^

<0 N

l ^ ' ^ ^ S ^ « m —

I ? I -

8

S B

13

1

i 1' ^

3 3

M

s 3 ^ ^ 15 *,

• * '

M

^ w

««

COMPARATIVE SCHEDULE OF GENERAL HXED ASSETS AND CHANGES IN GENERAL FIXED ASSETS


For the year ended June 30.2010

General Fixed Assets: Vehicles

Office Fumiture and Equipment

Total FUed Assets

Investment in General Fbced Assets:

Balance June 30.2009

$ 150,196 $

2,281

$ 152,477 $

Additions

•

.

.

$

. 1

peietipps

-

_

-

$

$

Balance 2010

150.196

2.281

152.477

Property acquired witti funds ftom-PCOA Section 18 Millage Titie 111 C-2 Titie 111 B Titie III C-1

5,312 -

147.165 --.

Total Investments in General Fixed Assets $ 152.477 $ - $

5.312

147.165

- $ 152.477

32

2915 S. Shcnvood Forest Blvd., Suite B

IcHAEL R. CBOAIE & COMPANY. cPAs ':i"S:^J^'%^^^^i^^ A P R O F E S S I O N A L C O R P O R A T I O N ^ ,„, ^ • «^ „ .

The Village Executive Office Suites 2895 Hwy. 190, Suite 230 Mandeville. LA 70471 (985)674-9092 Fax (985) 727-6701

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STAIHDARDS


We have audited the financial statements of West Baton Rouge Council on Aging, Inc., as of and for the year ended June 30,2010 and have issued our report thereon dated November 8, 2010. We conducted our audit in accordance with auditing standaids generally accepted in the United States of America and the standards applicable to financial auJdits contained in Govemment Auditing Standards^ issued by the Comptroller General ofthe United States.

Intemal Control Over Financial Reporting

In planning and perfonning our audit, we considered West Baton Rouge Council on A^ng, Inc.'s intemal control over financial reporting as a basis for designing our auditing procedures for the putpose of expressing our opinions on the financial statements, but tiot for the purpose of e:!q3ressing an opinion on the effectiveness of West Baton Rouge Council on A ^ g , Inc.'s intemal control over financial reporting. Accordingly, we do not e ipress an opinion on the effectiveness of tlie West Baton Rouge Council on Aging, Inc.'s intemal control over financial reporting.

A deficiency in intemal control exists A^en the design or operation of a control does not allow management or employees, in the normal 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 there is a reasonable possibility that a material

misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of intemal control over fmancial reporting was for the limited purpose described in the first paragr^h 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 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 obtaining reasonable assurance about whether West Baton Rouge Council on Aging, Inc.'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 not an objective of our audit, and accordingly, we do not express such an opinion. The residts of om tests disclosed no instances of noncompliance or other matters that are required to be reported under Govemment Auditing Standards.

This report is intended solely for the information and use of management, others within the entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specific parties.

}rU^COCJZ~ Michael R. Choate & Company, CPAs Baton Rouge, Louisiana

November 8,2010

CORRECTIVE ACTION TAKEN ON PRIOR YEAR FINDINGS


June 30,2010

There were no deficiencies found for the prior year.

35

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