Shreveport, Louisiana June 30, 2010app1.lla.state.la.us/PublicReports.nsf/26E04FDFE560BF6786257807005A04B... · ^ilB Volunteers of America of North Louisiana Shreveport, Louisiana

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Volunteers of America of North Louisiana Shreveport, Louisiana

June 30, 2010

Under provisions of state law, this report is a public document. 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 IJLjSJl j / 0


Table of Contents

Page

1 Statement of Financial Position June 30.2010 (with Compafative Totals for 2009)

2 Statement of Activities for the Year Ended June 30.2010 (with Comparative Totals fior 2009)

3 Statenoent of Functional Expenses for the Year Ended June 30,2010 (with Comparative Totals for 2009)

4 Statement of Cash Rows for the Year Ended June 30.2010 (with Comparative Totals for 2009)

5 Notes to the Finandal Statements June 30,2010

13 Additional Infomnation

14-15 Schedule of Expenditures of Federal Awards forthe Year Ended June 30,2010

16 Independent Auditor's Report

17*16 Report on Intemal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Rnanctal Statements Perftmned in Accordance With Govemment Auditing Standards

19-20 Report on Compliance with Requirements Applicable to Each Major Program and on Intemal Control Over Compliance in Accordance with OMB Circular A-133

21 Schedule of Findings and Questioned Costs

22 Corrective Action Plan


Statement of Financial Position June 30,2010

(with Comparative Totals for 2009)

2010 2009 Assets

Current Assets Cash and Cash Equivalents Investments Accounts Receivable, Net Pledges Reoelvatte Unoondftionai Promises to Ghre Prepaid Expenses other Current Assets

Total Cunent Assets

Property and Equipment Land and BuKdlngs and Leasehold Improvements Furniture and Equiprrant Construction In Progress

Less: Accumulated Depredation Total Property and Equipment Net

Pledges Receivable Uncomfitional Promises to Give Long-Temi Investments Other Assets

105.826 S 428.975

1.317.575 218.468 91,368

371.296 1,956

2,535.464

4,546,224 1.592.849

a

29.747 263.588

1.603.779 241.277 121.462 226,295 19.208

2.505.356

2.143,197 1,513.529 873.771

6.139.073 ( 2.351.2W)

3.787.804

332,871 47.178

1,654,266 452,640

4.530,497 ( 2.137.787)

2.392.710

457.905 108.945

7.636,227 489.792

Total Assets $ 9.010.223 $ 7.592.935

Liabilities and Net Assets Current LiabiBties

Accounts Payable Current Portion of Notes Payable Accrued Expenses

Total Current LlabUitss

Notes Payable - Long-Term Portion Total Liabilities

Net (Unrestricted Temporarily Restricted Permanently Restricted

Total Net Assets

Total Uafottil ies and Net Assets

217.718 $ 1.768

1.033,848 1.253.334

615.000 1.868.334

5.353.823 401.285

1.386.781 7.141.889

9.010.223 $

574.246 566.713 693.367

1.834.346

1.834.346

4.249,977 80,605

1,428.007 5.V58.589

7.592.935

T?te accompanying Notes are an Integral part of these statements. 1

Volunteers of America of North Louisiana Shreveport, touisUina

Statement of Activities for the Year Ended June 30.2010 (with Comparative Totals for 2009)

Revenues from Operations Put)Sc Support Roceiv9dDimctly

Contnbutions Challenge Grant Contributions. tn-KInd Government Fees and Grants MedteakJSenriceFees

Pub&: Support Reoolm/ln<£r9cliy Service Fees and Sales United Way

Net Assets Releassd from Restrictions Transfer of Net Assets Satisfaction of Profpam Restrictions

Total Revenues From Operations

Operating Expenses Pmgmm Services

Encouraging Positive Development Fostering Independence Promoting Setf-Suffidency

Totel Program Services

Support Seryhces Mansgement and General Fund Raising

Total Support Services

Total Operating Expenses

Excess (Deficit) from Operations

NoivOporatingActrvfty Investmem and Dividend Income Gain (Loss) on Disposition of Rxed Assets Gain (Loss) on Investirants Other Non-Openating Revenue

Totel Non-Operetlng Gains (Losses) and Other Revenue

Change in Net Assets

Net Assets at Beginning of Year Net Assets at End of Year

Uruestncted

$ 1.816.072 $

12.500 9.157,657 3.621.598

319.921 241.792

( 22,731) 78,589

15.225,398

3.817.468 5.362.851 2.744.760

11.925.077

1.787.501 585.569

2.373.070

14,298.147

927.251

32.454 6,961

27.974 109.205

176,595

1,103.846

4549.977 $ 5.353.823 $

Temporarily Restricted

169.151 57.500

-

> -

71.807 f 78.589)

219.869

---.

---

219.869

100.811

-

100.811

320.660

80.605 401.285

PormanenBy Restricted

$ $

-*

--

( 49,076)

-( 49.076)

•

--.

-. *

( 49.076)

--

7.850 .

7.850

( 41.226)

1.428.007 $ 1.386.781 $ ^

2010 Total

1.985.223 $ 57.500 12.500

9.157.657 3.621.598

319.921 241.792

--

15.396.191

3.817,466 5.362.851 2.744.760

11,926.077

1.787.501 585.569

2.373.070

14,298.147

1.098.044

32.454 6.961

136.635 109.206

285.256

1.383.300

5.758.589 7.141.889 $

2009

4.457.150

-37.500

9.828.493 3.986.669

259.301 229.327

--

18.798.440

4,498.169 6.337,619 2,386,659

13,235.447

1.909.836 563.733

2.473.669

15.709.016

3.069,424

22.135

-( 5.688)

142.251

188,696

3.248.122

2.510.467 5.768,589

The accompanying Notes are an integral part of these statemente. 2

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Volunteers of America of Nortli Louisiana Shreveport, Louisiana

Statenner\t of Cash Rows for the Year Ended June 30.2010 (vhrith Comparative Totals for 2009)

2010 2009

Change in Net Asseto $ 1,383.300 $ 3.246,122

AcQustmente to Recondle Change in Net Assets to Net Cash Provided by (Used in) Operating Activities

Depredation (Gain) Loss on Sate of Fbced Assete (Gain) Loss on Investment Transactions (Increase) Decrease in:

Accounts ReceWatile Pledges Receivable Unconditional Promises to Give Prepaid Expenses other Current Assete other Assets

Increase (Decrease) in: Accounts Payabte Accrued Expenses

Net (^sh Provided by (Used In) Operating Activities

Cash Rows from Investing Activities

Proceeds from Sale of Fbced Assets

Proceeds from Sale of Inveslmente

Purchase of Investmente

Purchase of Fbced Assets

Net Cash Provided by (Used in) Investing Activities

Cash Flows from Rnandng Activities Payments on Notes Payable Proceeds from Issuance of Notes Payable

Net Cash Provided t>y (Used in) Rnandng Activities

Net Increase (Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents - Beginning Cash and Cash Equivalente - Ending

Supplenrtental Dlsdosure of Cash Row Information Cash Paid fbr Interest During the Year

( {

(

313.476

6.961)

136,635)

286.204

147,843

91,861

145,001)

17.252

37.152

( ( ( (

313,393 -

5,688

150.668)

699,182)

230,407)

2.946)

21.710

2.761

( 356.526) 340.461

1.972.424

27.937

898,256

( 1,143,047)

( 1.729.546)

(

(

1.946,400)

6.374,276)

6.424.331

50.055

76.079

29.747 $

$

105.826

8.489

( 130.400) ( 23.957)

2.354.114

306

( 1,443.636)

( 1.120.327)

( 2.S63.6S7)

( 3.326.948) 3.223.204

( 103.744)

( 313,287)

343,034 29.747

41.805

The accompanying Notes are an integral part of these statemente. 4


Notes to the Financial Statements June 30.2010

Note 1 Organization Volifliteers of America of North Loulsiwa CVOA", "ê VOA", or "Organization'') is a nonprofit spMtualiy based human services organization. Incorporated in the State of Louisiana, that provides sodal services within North and Central Loueiana as a subsidiary corporation of Votunteers of America, Inc., a national nonprofit spiritualty based organization providing local human sewice programs, and opportunities for individLials and commimi^ involvement

Ttie VOA's programs are grouped into three ntajor ^pact areas:

Encouraging Positive Development Within the impact area of encoura^g positive development, VOA pnDvides services to encourage positive development for troubled and at-risk children and youth, while also promoting the healthy developnrtent of all children, adolescents and their families. VGA's programs provide a continuum of care and support for young people, ages birth to 21, through prevention, early Intervention, crisis Intervention and long-term services.

This pact area includes the following categories:

Whatever It Takes - chiki and family supporthre services Twin Cities Early Head Start - eariy ctiadhood and family support (Grandparents as Parents - family preservation Family Resource Centers - family preservation Intensive Home Based Sen/ices - family preservatton Independent Living Skills - services fbr youth aging out of foster care Life Support - mentoring Louisiana Promise - parent educatton 21** Century Connmunity Learning Centers - pre-and after-school care Project Hope - pre-and after-school care Pregnancy Servk»s - counseling Scholastic Books - scholastic toys and comfort kits Career Vision - training, job placement and support Teen Pregnancy Preventton - education groups and classes Transitional Living - youth emergency shelter/group honf)e Crisis lnterventk)n Team - training of community professtonals

Fostering Independence Within the Impact area of fostering independence. VOA fosters the health and independence of the etderiy and persons with disabOities, mental illness and HIV/AIDS through quality affbnjable housing, health care services and a wide range of communrty services.

This impact area includes the following categories:

• Eligibility Assistance Region 6 - disability services related to health benefits • Eligibility Assistance Regies 7 - disability services related to health benefits • Eligibility Assistance Region 8 - disability sen/ices related to health benefits • Traumatic Brain Injury/Spinal C^rd - trust fund program fbr independent living • Personal Care - in-home supports for devetopmantally dteabled persons

Supported Independent Living - assisted independence fbr devetopmentalty disabled persons Service Coordinatton - linking disabled dients with community resources Senior Services - meal In social setting fbr sentor dtizens Housing First - supportive housing for persons with disabilities Housing Opportunity fbr Permanent Sotutk)ns - supportive housing fbr mentally III persons fi/lagnoHa Place - supported living fbr homeless adults with rmijor mental illness McAdoo - supported living fbr honieless adults with major mental iDness Tran8itk}nal Housing - crisis shelter and short tem housing for mentally ill persons Greenwood Lodge - apartment community forthe developmentalty disabled Corbitt Lodge - apartment community fbr chronically mentally ill Pinehaven Place - housing program serving chronically mentally ill population HUD Monroe - supportive sen/ices and housing for homeless mentally ill Mental Health Supported Housing - housing vnth supportive servtees for chrontoalty mentally ill Assertive Community Outreach Services - outpatient services for seriously mentally III dients Assertive Community Treatment - intensive, indivkJualized case management for mental illness Mental Health - adjunctive services for fomiltes of mentally 111 persons Viston of Hope - community-based comprehensive care system for m ^ t a l health Louisiana Rehabilitation Services - employment counseling and job placement ACT Mobile Crisis Team - mental health counseling and treatment Crisis Cottage - temporary respite housing for children and youth with mental illness Intensive Sheltering Program - respite care for chronically mentally ill adults Mental Health Housing - housing with supportive servtoes for mentally ill adults Rural Mental Health Housing - housing with supportive services for mentally ill adults

Promoting Self-Sufficlency Within the impact area of promoting self-sufftciency, VOA worics to promote the self-sufflciency of those who have experienced homelessness or other personal crisis, including chemical dependency. Involvement with the conectlons system and unempk)ymenL VOA fbcuses on solution-oriented approaches, using a continuum of services from preventton to intervention to k)ng-term support

Thte impact area indudes the following categories:

Dress fbr Success - professional attire, career development and support networic SpauMing for Children - training of medical professional on pregnancy counseling Tracker Services - coaectional services follow-up fbr juveniles Wbrk Incentive Program Assistance - employment counseling and job placement Homeless Outreach - assistance for persons needing mental health and/or addiction treatment GAPS #1 - supportive housing for mentally ill persons GAPS #2 - supportive housing for mentally ill persons VA Housing - transitional housing for veterans Credit Counseling - one-on-one counseling for home ownership First Time Home Buyers Class - HUD-approved course for home ownership

The continued existence of new fonds for the preceding programs, which are primarily funded through grants and contracts, will be dependent upon contr^^hial renewals with VOA's various funding sources.

Note 2 Summary of Significant Accounting Policies Basis of Accountino - The accounting polides of the Organizatfon confomn to generally accepted accounting prindples as applicable to voluntary health and welfore organizations. VOA prepares its financ^l statements on the accrual basis of accounting. Accordingly, revenues are recognized when eamed end expenses are recognized when incurred. The more significant accounting policies of the VOA are described below:

Accounts Receivable - The VOA predominantly extends credit through bWing fbr reimbursement of alfowed costs In connectfon with provkjing services under contract with various federal and state agencies. The VOA also extends credit to select individuals in the course of performing adoptfons and other services for fees in Central and North Louistena. All extensions of credit are on an unsecured basis. Grant receivables are recorded at the amount billed and are deemed delinquent based on contractual terms.

Allowance for Doubtful Accounts - The allowance for doubtful accounts is evaluated on a regular basis by management and is based upon management's periodic review of the collectibility of the receivables in fight of historical experience, the nature and type of account, adverse situations that niay affect the payor's abifity to repay and prevaiing economic conditions. This evaluatfon is Inherentiy subjective, as it requires estnnates that are susceptibte to significant revision as more information becomes available. Receivables deemed uncollectible are charged off against tiie allowance when management befieves the uncoUectibaay is confirmed.

Propertv and Eouloment - Land, buiklings and equipn\ent purchased by tiie VOA are recorded at cost VOA capiteizes al expenditures fbr land, buKdings and equipment in excess of $5,000; ttie folr value of donated fixed assets is similarly capitalized. Depreciation te computed on ttie staaight-line mettiod based upon tiie fbflowing estknated useful lives of Uie assets: fom'iture and equipment - five to seven years; transportation vehides - five years and buiklings and improvements - ttilrty years. Certain property and equipment purchased with grant funds may revert back to ttie fonding agency if the program ts dosed or abandoned and proceeds from tiie sate of certain property coukj be retumed to ttie granting agency.

Cash Equivalents - Cash equivalents are all highly liquid investments witti a maturity of tiiree months or less when purchased, unless held fbr reinvestment as part of ttie investment portfbflo. pledged to secure loan agreements or ottierwise designated or restricted. The canying amount approximates foir value because of ttie short maturity of ttiose insttuments.

Conlributions - Contributions are generally recorded only upon receipt, unless evMence of an unconditior^l promise to give has been received. Unconditional promises to give ttiat are expected to be collected in future years are recorded at ttie present value of ttie amounts expected to be coBected. Conditional promises to give are not induded as support until such time as ttie conditions are substentially met All contributions are conskjered available for unrestricted use unl^s spec'ificaRy restricted by ttie donor.

Promises to Give - Unconditional promises to give are recognized as revenues or gains in ttie period received as assets, decreases of liabilities, or expenses depending on ttie form of ttie benefits received, (^ndib'onal promises to give are recognized when the conditions on which Uiey depend are substantially met

VOA uses ttie allowance mettiod to detemiine uncollectible promises for unconditional promises receivable. The allowance is based on prior years' experience and management's analysis of specific promises made.

Contn'buted Services - VOA recognizes contribution revenue fbr certein servtees received at ttie foir value of those services, provided those services create or enhance non-financial assete or require spedaHzed skills, which are provided by individuals possessing ttiose skills and woukJ typically need to be purchased if not provkled by donation.

Resfrtoted and Destanated Assets - Restricted and designated assete represent ttie totel of all assete ttiat are encumbered by donor restiictions, legal agreemente and boaitt des^nation or are ottierwise unavailable for ttie general use of ttie Organization This category generally Indudes dient/custodtel funds, escrow/reserve funds, temporarily and permanently restricted assete and securities ttiat are pledged and heki by ttie lender as collateral for financing.

Net Assete - The Organization classifies net assete into ttiree categories: unrestricted, temporarily restricted and permanentiy resfricted. All net assete are conskJered to be avaiiabte for unrestricted use unless specifically restricted by the donor or by law. Temporarily restricted net assete Indude contributions witti temporary, donor-lmpcêd time or purpose restrictions. Temporarily restricted net assete beconm unrestiicted and are reported in ttie statement of activities as net assete released from restiictions when ttie time restrictions expire or the contributions are used for the restiicted purpose. Permanentiy restrtoted net assete indude contributions witti donor-imposed restrictions requiring resources to be mainteined in perpetuity, but permitting use of all or part of ttie investinent income eamed on ttie contaibutions.

Operations - The Organization defines operations as an pro-am and supporting senrice activfties underteken (see Note 1). Revenues tiiat resiA from ttiese activities, and ttieir related expenses, are reported as operations. Gains, fosses and ottier revenue ttiat result from ancillary activities, such as investing Bqukl assete s id disposing of fixed or ottiw assete, are reported as non-operating.

Income Taxes - Under provistons of Section 501(c)(3) of ttie Intemal Revenue Code and the appHcabte income tax regulations of the Stete of Louisiana, Volunteers of America of Nortti Louisiana is exempt from income taxes, except for net income from unrelated business income, as a subordinate unit of Volunteers of America, Inc. Volunteers of America. Inc. is exempt from federal income taxes under Section 501(a) of tiie Intemal Revenue Code as a religtous organization described in Sectfon 501(c)(3). There were no unrelated business activities in 2010. Accordingly, no tax expense was incuned for ttie year ended June 30.2010.

VOA has adopted ttie provisions of FASB ASC 740-10-25 (ftwrneriy FASB Interpretetfon No. 48, Accounting for Uncertainty in income Taxes), Under FASB ASC 740-10-25, an organization must recognize ttie tax benefit associated witti tex token for tax retum purposes when it is more likely ttian not ttie position will be susteined. The Implementetion of this stendard had no imp^t on Vr\e organization's financial stetements. VOA does not believe ttiere are any material uncertain tax positions and, accordingly, it will not recognize any liability for unrecognized tax beneftte. No interest or penalties were accrued as of June 30,2010, as a result of the adoption of FASB ASC 740-10-25. For ttie year ended June 30, 2010, tiiere were no Interest or penalties recorded or inciuded in tte financial statemente.

Investmente - Investinente consist primarity of bond and corporate mutual fonds. stocks and cash resen/e fimds. They are recorded at fair value based on quoted maritet prices. All ottier investinente are reported at historical cost if purchased, or if contributed, at foir value at tiie date contribution.

Summarv Rnancial Infonnation for 2009 - The finandal statemente indude certain prior year summarized comparative information in totel but not by net asset ctess. Such information does not indude sufficient detail to constitute a presentation in conformity vtritti generally accepted accounting principles. Accordingly, such infomiation shouM be read in conjunction witti ttie VOA's finandal statemente for ttie year ended June 30,2009, from whk h ttie summoized infonnation was derived.

ABocation of Functional Expenses - The coste of provkJing ttie various pro-am servtees and supporting activities have been summarized on a fonctional basis in tiie statement of activities. Accordingly, certain coste have been alk}cated among the various fonctions.

Use of Estimates - The preparation of finandal statemente in conformity v/ith accounting prindples generally accepted in tiie United States of America requires management to make estimates and assumptions ttiat affect ttie amounte reported in the financial statemente and accompanying notes. Achml resutts couU differ from those estimates.

Reclassification - Certain 2009 amounte have been redassified to conform to ttie 2010 financial statement presentation.

Concentiations of Credit Risk - VOA maintains Ite cash balances at several different financial institutions and investinent companies in ite servtee delivery area. The balances witti ttie finandal institutions are insured by ttie FDIC up to $250,000 for each bank. The VOA can have exposure from time to time due to cash balances heU in excess of ttie FDIC coverage. At June 30,2010, VOA's cash batences were folly secured.

31 % 26 % 2 %

11 % 18 % 12 %

100 %

28 % 24 % 7 % 6 %

27 % 8 %

100 %

VOA has tiie following mix of grant receivabtes and grant revenue at June 30,2010:

_ Receivable Revenue Medicaid Waiver Program U.S. Department of Healtii and Human Services U.S. Department of Education U.S. Departtnent of Housing and Urt)an Development State Grante Ottier Sources Total

Fair Vakie Measuremente - The carrying values of the organization's financial instrumente induding cunent assete and current liabiKties approximate tair value.

In 2009, ttie VOA adopted ttie provisions of FASB ASC 820.10 and subsections (formeriy knovm as SFAS No. 157, Fair Value Measurements). Under FASB ASC 820.10, fair value te defined as ttie price ttiat would be received to seO em asset or paid to b^nsfer a liabiSty in an orderly transaction between market partidpante at ttie measurement date.

FASB ASC 820.10 establishes a tair value hierarchy for inpute used in measuring tair value ttiat maximizes the use of observable inpute and mininrnzes the use of observat^ inpute by requiring that most obsen/able inpute be used when available. Observable inpute are tiiose ttiat market partidpante would use in pricing ttie asset or llabaity based on ttie best information available in ttie droumstances. The tair value hierarchy is categorteed into ttiree levels based on the inpute as follows:

Level 1 - Valuations based on adjusted quoted prices in active markete for identical assete or liabilities as of ttie reporting date. Since valuations are based on quoted prices ttiat are readily and regulariy avaitable in an active n^ricet valuation of these securities does not entail a significant degree of judgment

Level 2 - Vakiations based on quoted prices in maricete ttiat are not active or for whteh all significant inpute are observable, elttier directly or indirectly, as of the reporting date.

Level 3 - Valuations based on Inpute are unobservable and indude s'rtuations where tiiere is littte. if any, maricet activity of the Investment. The Inpute into ttie detennination of foir value require significant management judgment or estimation.

In some instances, the inputs used to measure foir value may tall into different levete of ttie foir value hterarohy. In such instances, an investinent's level within ttie tair value hierarchy is based on tiie fowest tevel of input that Is significant to ttie foir value measurement.

The VOA's measuremente of foir value are made on a recum'ng basis and ttieir valuation techniques for assete and liabilities recorded at foir value are as fbllov/s:

Assete measured at tair value on a recuning basis consist of ttie following: Ottier

Available-for-sate securities

Pledges receivable

Unconditional promises to give

Subsequent Evente - The VOA has evaluated subsequent evente ttirough October 29. 2010, ttie ctete whk:h finandal statemente were issued, conduding ttiere were no evente requiring dlsdosure.

$ I

$ ,

$ •

Quoted Prices m Active Maricete

2.283.241 $

$

$

Obsen/able Inpute

-

-

138.546

$

. 5 -

. 5_

Unobservable Inpute

-

551.339

-

705,834 794,251 253.156 28,481 373,937

2.155,659 433,492

1.722,167

$ 705.834 875,716 262.249 39,845

399.597 2,283.241 428.975

$ 1.854,2^

Note 3 Temporarily Restricted Net Assets Temporarily restricted net assete at June 30. 2010 were composed of undistributed conttibutions eamnartced for scholarships and ottier various donor restricted purposes. Temporarily restricted net assete of $401,285 are comprised of cunent investinente in ttie statement of financial position.

Note 4 Pemianently Restricted Net Assets Permanentiy resbided net assete at June 30,2010 vi/era composed of conttibutions resbicted by dcmors. The VOA can annually disttlbute a percentage of the annual maricet value of ttie fond (as detemnined by ttie Boanil of Directors), to indude eamed income and realized gain, as long as ttie corpus will remain and grow in perpetiJity. Permanentiy restiicted net assete of $1.3^.781 are comprised of fong-term investinente in ttie statement of financtal position.

Note 5 Investments Investinente at June 30,2010, are summarized as foflows:

Cost Fair Value Money Maricet Mutual Funds and Exchange Traded Funds Corporate Bonds Stocks U.S. (Government Bonds

Less Current Investinente Long-Temn Invesbnente

Investinent income at June 30,2010, is composed of interest and divkfends of $32,454. Gain (toss) on investment tiansactions at June 30,2010, is composed of net raafized gains of $9,054 and unrealized gains of $127,581.

Note 6 Accounts Recehâble At June 30,2010, accounte receivable consisted of ttie foltowing:

Grante and Contiacte Receivabte $ 1,547,575 Less AHovi/ance for Uncollectible Receivables ( 230.000 )

Total $ 1,317,575

Note 7 Notes Payable Direct subsidy conditional grant in ttie amount of $390,000. govemed by and Affordabte Housing Program Agreement for Rental Project witti ttie Federal Home Loan Bank of Dallas witti 0% interest secured by real estete. Grant has a fifteen year retention period and will not have to be repakJ as long as VOA complies witti tiie agreement $ 390,000

Promissory note payable to ttie Louisiana Housing Rnance Agency ("Agency") in ttie ordinal amount of $250,000 witti 0% interest rate, payable in annual instalknente of $25,000 but not in excess of an amount equal to fiifly percent of surplus cash, due on first day of April, commending April 1. 2010; provkled however, tiiat aQ paymente due hereunder shall be payable only out of and to ttie extent of ttie surplus cash to determined by the Agency and after a cash distn'bution to tiie VOA of not more tiian $10,000. This note matiires April 1. 2020. and shall be forgiven on ttiat date if ttie housing project has been maintained in accordance witti ttie Agenc/s Affordabte Rental Housing Program Regutetory Agreement Note \s secured by a continuing security Interest In all righte, titie and interest acquired or arising out of tills note, 225,000

Note payable to a finandal institijtion in tiie original amount of $300,000 witti interest based on JP Morgan Chase prime plus .5% (3.75% at June 30, 2010), payable tn tiiirty-sbc (36) monttily bistaltmente of $9,544, indud'tng interest, due August 31, 2010, secured by land and buiWings. 1.768

Totel 616.768 Less Cunent Portion ( 1.768 )

Long-Term Portion $ 615.000

10

The fdtowing is a schedule of ttie debt maturing in subsequent fiscal years ending June 30: 2011 $ 1.768 2012 2013 2014 2015 Thereafter 615.000 Total $ 616.768

Interest expense for tiie yea* ended June 30,2010, was $8,489.

Note 8 Leases The VOA leases certain fadlities and equipment from unrelated parties under operating leases, whteh expire at various dates. The minimum fritore lease obligations under such teas^ are as foltows for ttie fiscal years ending June 30:

2011 $ 210.810 2012 73.484 2013 23,174 2014 4.700

$ 312.168

Total rent expense uncter all leases amounted to $361,455 for ttie year ended June 30, 2010, and is induded in occupancy expense.

Note 9 Pledges Receivable Pledges receivabte are recorded as receivables and revenue when received. The VOA distinguishes between conttibutions received for each net asset category In accordance witti donor-Imposed restiictions. Pledges are recorded after being discounted to the antidpated net present value of tiie foture cash fiovi/s. The VOA conducte various annual fond raising campaigns and receives multi-year donations frx>m various conttibutors. Foltowing Is a recap of ttie VOA's pledges receivable at June 30.2010:

Total pledges receivabte $ 712,710 Less: AlkJwance for uncollectibte pledges ( 82.968 ) Less: Discount at 6% ( 78,403 ) Net pled^s receivable 551.339 Less current portton ( 218,468 ) Long-term portion $ 332.871

Note 10 Promises to Give Following is a recap of unconditional promises to give at June 30, 2010:

Unconditional promises to give $ 152.400 Less: Altowance for uncoltectibte amounte ( - ) Less: Unamortized discount at 6% ( 13.854 ) Het unconditional promises to give Less current portion Long-term pc)rtion

Amounte due in: Less than one year One to two years Two to ttiree years Three to four years Four to five years

Total

11

( $

$

$

138,546 91.368 47.178

96,850 21,850 21,850 11,850

152,400

Note 11 Pension Plan for Ministers The VOA participates in a non-contributory defined benefit penston and rîrement ptan. The ptan is administered tiirough a commerdal Insurance company and covers alt commisskxied ministere. Pensfon plan expense was $27,330 for tiie year ended June 30,2010. Because ttie plan is a multi-employer ptan, ttie accumulated benefite and net assete avaitable fr^r benefite as ttiey relate sotety to tiie VOA are not readily avaiiabte.

Note 12 Retirement Plans The VOA joined ttie national retirement savings pten of Vokinteers of America, Ina, whteh is organized under Intemal Revenue Code Section 403(b). The plan allows all emptoyees witti one year of service to pcvtidpate. Employees are able to conttibute annually up to tiie statutory limitations, currentiy $16,500. Employer discretionary contiibutions are up to one (1%) percent of ttie empkêe's satery, limited to fifty (50%) percent of ttie empk^ ' s conttibution. In addition, Volunteers of America, Inc., tiie pten sponsor, contiibutes four (4%) of the empk>yee's salary. Contiibutions made to ttie plan are at ttie discretion of the Board of Directors. Retirement plan expense was $196,787 for the year ended June 30,2010, under ttiis pten.

Note 13 Relatod-Party Transactions VOA is affiliated witti Volunteers of America, Inc., whteh provides supporting servk:es to the VOA for a fee. Affinate fees for ttie fiscal year ended June 30,2010. totaled $303,739. Prepaid admlnisttative fees at June 30, 2010, was $6,621.

VOA manages six HUD projecte ttiat are part of the national affiliation of Volunteers of America, Inc. Management sateries. bookkeeping and ottier expenses pakt by ttie projecte for ttie year ended June 30, 2010, v;/ere $341,584. Of ttiis amount $47,798 vias fOT management and bookkeeping fees. At June 30. 2010, ttie prcjecte owed VOA $360,380, whk:h is induded in otiier assete.

VOA is affiPtated witti Volunteers of America of North Louistena Hightand Center Corporation (VOA HOC). Certain expenses are paki by VOA on behalf of VOA HCC. At June 30.2010. VOA HCC owed $87,686 to VOA, and is induded in ottier assete.

VOA HCC also teases buikiing space from VOA. Rent paid to VOA for ttie year ended June 30, 2010, totated $57,600.

VOA partk:ipates in ttie Schotestic Books Program whereas donated books are given to children in lower-income fomilies. VOA recorded $12,500 in revûe and expense from i artidpating In this program.

Note 14 Compensated Absences - Accrued Leave Empfoye^ may accnje up to 160 hours of vacation leave each year. Upon an emptoyee's separation of employment eamed and/or accrued leave will be pakj up to a maximum of 160 hours. Emptoyees can ateo accaie sick leave, but accumulated sick leave is forfeited upon separation of employment

At June 30.2010, ttie approximate amount of accumulated and vested emptoyee leave benefite was $209,867, whk:h is included in accrued expenses.

Note 15 Accrued Expenses At June 30,2010. accrued expenses consisted of ttie following:

Accrued payroll and retated taxes and withhoMings $ 469,030 Accmed leave payabte 209,867 Constniction bBlings due 204,799 Insurance 143.121 Prepaid administtBtive fees ( 6.621 ) Ottier 13.652

Total $ 1.033.848

Note 16 Contingencies As noted in Note 7. VOA has a conditional grant for $3^,000 and a promissory note outstanding fr)r $225,000 that wQ) not have to be repaid as tong as VOA compiles witti ttie stiputeted terms of ttiese two agreemente. In ttie event VOA does not comply, ttiey will be contingentiy Kabte to repay ttiese amounte

12

Additional Information

13


Schedute of Expenditures of Federal Awards for the Year Ended June 30,2010

Federal Grantor/Pass-Through Grantor/Program Title

U.S. Department of Heafth and Human Senrices

Transitional Living for Hometess Youth - Transitional Living Program Transitional l iving for Homeless Youtii - Trwisttional Living Program Head Start - Eariy Head Start Head Start - Eariy Head Start Head Start • Eariy Head Start (ARRA)

Passed through the State of Louisiana Department erf Health and Hospitals Block Grants for Community MH Sen/Ices - McAdoo Blodc Grants for Community MH Sewlces - Housing Program Block CSrant for Adult Housing - Magnolia Place Block Grants for Community MH Services - Whatever it Takes Blodc Grants for Community MH Sen/k»5 - Assert. Comm. 0/R & TRL Sodal Sen/ices Block Grante - Rural Respit Program Sodal Sen^kês Bk>ck Grante - Intensive Sheltering Program Block Grants for Community MH Sen/ices - B(g Assist Reg Vt Block Grante for Community MH Servtees - Rural Outreadi Sodal Sen/ices 6k>ck Grante - Adult Assertive Community Treatinent (ACT Sodal Services Block Grante • Hometess Outreach Sodat Services Block Grants - Homeless Oubeach

Passed ttirough ttte State of Louisiana Department of Sodal Services TANF - Community Response Initiative-SHV Chafee Foster Care Independence Program • Highland Haven Housing (Counseling Assistance Program - Housing Services TANF - Community Response Initiative - Atex Promoting Safe & Stabte Famines • Atex. Child Wbitere TANF-TPPP-Jena

Passed ttirough SpauMing for Chiklren Intent Adoption Awareness Training - Spaulding for Children Intent Adoption Awareness Training • Spaulding for Chiklren

U.S. Department of Veteran Affairs VA Homeless Providers Grant and Per Diem Program VA Homeless Provklers Grant and Per Diem Program

Federal CFDA

Number

93.550 93.550 03.600 93.600 93.708

93.958 93.958 93.667 93.958 93.958 93.667 93.M7 93.W>R 93.958 93.667 93.667 93.667

93.558 93.674 93.558 93.558 93.556 93.558

93.254 93.254

64.024 64.024

Pass-Through Grantor's Number

06CX0767/02 06CX0767/02 06CH7024«)7 06CH7024A)B 6SE7024/01

663282 663248 653323 677233 681736 661861 677288 664119 677593 653326 660325 664188

645972 665758

unknown 645972 669879 652497

90CG2657/02 90CG2657

08-853-U 08-853-LA

Total Federal

Expenditures

$ 135.568 61,556

548.366 528.036 50.200

27.745 43.200

275,940 61,170 31,302 14.019 47.757 52.430 11,319

401,760 81,588 35,162

10,355 75,139 20,600 13,845

325.636 21,347

56,714 175.468

369,880 51,104

U.S. Department of Agriculture Food and Nutrition Ser>rfce Passed through Louisiana Department of Educatlon-CACFP

ChiM and AduR Care Food Program - Eariy Head Stert

U.S. Departmerrt of Education Parental Information and Resource Centers • LA Promise Mentoring Program Grants-Lending Inspiration for Education (UFE) Support/ Safe end Drug Free Schools and Communities - Life Support

Passed through Louisiana Department of Education 21 St Century Community teaming Centers 21st Century Communi^ Learning Centers

10.558 26-091 29,508

84.310

84.184

84.287 84.287

U310A060137

Q184B080065

646920 687038

374,963

169,353

214,766 172.727

14

Federal GrantorfPass-Throuflh Grantor/Program Titie

Federal CFDA

Numl}er

Pass-Through

Grantor's Number

Total Federal

Expencfihires

Passed ttirough Slate of Louisiana Governor's Safe and Drug Free Schools Safe and Drug Free Schods and CommunHies-Natonal Program 84.184

U.S. Department of tabor Passed ttirough City of Shreveport. Louisiana

WIA Youtii Activities - P r o ^ Hope WIA Youtii Activities - Career Vision

U.S. Deoartment of Housing and Urtian Devetoomant Supportive Housing Program • Mlnden Housing Supportive Housing Program - Mlnden Housing Supportive Housing Program - Shreveport Housing Supportive Housing Program • Shreveport Housing Supportive Housing Program - GAPS Supix>rtive Housing Program - GAPS Supportive Housing Program - Housing First Suppc^tive Housing Program - Housing First Housing Counseling /d i s tance Program Housing Counseling Assistence Program Housing Counseling Aaslstence Program Supportive Housing Program - Supportive Permanent Housing Supportive Housing Program - Supportive Permanent Housing Supportive Housing Program • Supporthre Permanent Housing Supportive Housing Program - Supportive Permanent Housing Supportive Housing Program - Monroe Housing Supportive Housing Program - Monroe Housing

Passed ttirough City of Bosster City, Louisiana Community Devetopment Block Grant - Ughttiouse Bossier City 14.218

Passed ttirough VOA, Inc. Supportive Housing Program - Sen/lce Coordination

Passed ttirough Louisiana Housing Finance Agency National Foredosure Mitigation Counseling Program

Sodal Securitv Admlnlsfaation Social Security - Woric Incentives Ptenning and Assistance Program

Passed through Louisiana Stete University Social Security - Wbrk Incentives Ptannkig end Assistence Program Sodal Security - Woric Incentives Ptenning and Assistence Program

Envtronmmtal Protection Aoencv Passed ttirough Loulstena Department of Environmental Quality

BrownfieWs Assessment and Cleanup Cooperative Agreement (ARRA) 66.818

unknown 10,265

17.259 17.259

14.235 14J235 14^35 14.235 14.235 14J235 14.235 14.235 14.169 14.169 14.169 14.235 14.235 14.235 14.235 14.235 14.235

K9002 K9001

LA46B6H020801 tA46B6H020802 LA39B6H020801 LA39B6^^0e02

LA48B402001 LA37B8H020801

LA48B702002 tA0153B6H020901

HC08-0898-020 HC09-0823-005 HC09-0821-073 LA48B707003

LA0141B6H070801 LA48B707004

LA0141B6H070e01 LA0112B8H050802 LA0112B6HOS0801

161.247 68.169

90.455 9,368

85.437 48.324 70.045

106,196 59.936 25,096 25,000

. 24,612 12,634 47,272 14.862 40,577 63.047 26.409

unknown 10,000

14.235

14.169

96.008

96.008 96.006

LA62HS03001

unknown

unknown

14-VV^003-6^)4 14-W.5003-6-05

28.140

11,350

2.422

72,867 26.680

675620 18.821

5.648.164

See Independent Audttor's ReporL 15

ROBERTS, CHERRY AND COMPANY CertiTted Public Accountants, Consultants

Independent Auditor's Report

To the Board of Directors of Volunteers of America of North Louisiana Shreveport. Louisiana

We have audited the accompanying statement of financial posilion of Volunteers of America of North Louisiana (a nonprofit organization) as of June 30, 2010. and the related statements of activities, functional expenses and cash flows for the year then ended. These financial statements are the responsibility of Volunteers of America of North Louisiana's management. Our responsibility is to express an opinion on these financial statements based on our audit. The prior year summarized connparative information has been derived from the VOA's 2009 financial statements and, in our report dated October 29, 2010; we expressed an unqualified opinion on those financial statements.

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 Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of materia! misstatement An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statemenis. An audit also includes assessing the accounting principles used and the 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 opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Volunteers of America of North Louisiana as of June 30. 2010, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Govemment Auditing Standards, we have also issued our report dated October 29, 2010, on our consideration of Volunteers of America of North Louisiana's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not lo 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 of our audit.

Our audit was performed for the purpose of forming an opinion on the basic financial statements of Volunteers of America of North Louisiana taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U. S, Office of Management and Budget Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations", and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statemenis and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

KcPCSEe^, C-/4£eav AHX> ^ ^ p ^ ^ y

ROBERTS. CHERRY AND COMPANY

A Corporation of Certified Public Accountants Shreveport, Louisiana October 29. 2010

16 A Corporatiitn of Certified l*vblic Accauntiints • F. O. BOX 42 8 • SIIKKVKI'OHT. LA 71IJ4-0I7X • (318)222-2212 • FAX (3I«) 226-7150

ROBERTS, CHERRY AND COMPANY Certifleti Public AccoumantSy Consultants

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 STANDARDS


We have audited the financial statemenis of Volunteers of America of North Louisiana (a nonprofit organization) as of and for the year ended June 30, 2010, and have issued our report thereon dated October 29, 2010. 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 Government Auditing Standards, issued by the Comptrolier General of the United Slates.

Internal Control Over Financial Reporting In planning and performing our audit, we considered Volunteers of America of North Louisiana's internal control over financial reporting as a basis of designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinbn on the effectiveness of Volunteers of America of North Louisiana's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control over financial reporting.

A defictency 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, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal 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 internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We identified certain deficiencies in internal control over financial reporting that v/e consider to be material weaknesses. See Finding 2010-1 in the schedule of findings and questioned costs.

Compliance and Other Matters As part of obtaining reasonable assurance about whether Volunteers of America of North Louisiana'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 results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

17

A Corporation ot Cvriirieii Public Accountants • I*, o. BOX 4;7« • SiittKVKroHl. LA ?n.w-fl278 • (318)222-2222 • FAX pl8) 216-7150

This report is Intended solely fbr the Infonnation and use of the kioard of directors, management, others within the Organization, federal awarding agencies, Louisiana Legislative Auditor and pass-through entities and is not intended to be and stiould not be used by anyone other than these specified parties. Under Louisiana Revised Statute 24:513, this report Is distributed by the Louisiana Legislative Auditor as a public documenL

tsc7Se«S%^ W4CC«y AHX> Conp^jny

ROBERTS, CHERRY AND COMPANY

A Corporation of Certified PubGc Accountants Shreveport, Louisiana October 29.2010

18

ROBERTS, CHERRY AND COMPANY Certified Public Accoutitants, Consultants

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON

INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133


Compliance We have audited Volunteers of America of North Louisiana's compliance with the types of compliance requirements described in OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of Volunteers of America of North Louisiana's major federal programs for the year ended June 30, 2010. Volunteers of America of North Louisiana's major federal programs are identified in the summary of auditor's results secfion of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable lo each of its major federal programs is the responsibility of Volunteers of America of North Louisiana's management. Our respor)sibility is to express an opinion on Volunteers of America of North Louisiana's compliance based on our audit

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 Govemment Auditing Standards, issued by the Comptroller Genera! of the United Slates; and OMB Circular A-133, Audits of States. Local Governments, and Non-Profit Organizations, Those standards and OMB Circular A-133 require that we plan and perform the audit 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 Volunteers of America of North Louisiana's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Volunteers of America of North Louisiana's compliance with those requirements.

In our opinion, Volunteers of America of North Louisiana complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2010.

Internal Control Over Compliance Management of Volunteers of America of North Louisiana is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered Volunteers of America of North Louisiana's interna! control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on interna! control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of Volunteers of America of North Louisiana's internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allov/ management or employees, in the normal course of performing their assigned functions, to prevent or delect noncompliance with 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 a combination of deficiencies, in internal 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.

19

A CorpOCaiion o f Certif ied Public Act'OUntUntS • K O. BOX 427S • SimtlVKPORT, L\ 7»I>J W7S • (318)222-2222 • FAX (318)226-7150

Our consideration of intemal control over compliance was fbr the limited purpose described in the first paragraph of this section and was not designed to Identify aH deficiencies in intemal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. \Afe did not identify any deficiencies In Intemal control over compliance that we consider to be material weaknesses, as described above.

This report is intended solely for the infbmnation and use of the board of directors, management, others within the Organization, federal awarding agencies, Louisiana Legislative Auditor and pass-through entities and Is not intended to be and should not be used by anyone other than these specified parties. Under Louisiana Revised Statute 24:513, this report is distributed by the Louisicma Legislative Auditor as a public documenL

^

ROBERTS, CHERRY AND COMPANY A Corporation of Certified Public Accountants Shreveport, Louisiana October 29,2010

20


Schedule of Rndings and Questioned Costs June 30.2010

Sect ion I - Summary o f Aud i t o r ' s Resul ts

Financial Statements Type of auditor's report issued: Unquidffied

Compliance and Intemal control over finandal reporting: Siîficant deflciency(ies) identified? Yes Material weakness(es) identified? Yes Noncompliance material to fnancel statements noted? No

Federal Avirards Intemal Control over major pn^grams:

Significant defidencyCies) identified? No Material weakness(es) identified? No

Type of auditor's report issued on compBance fbr major prograns: Unqualified

Any audit findings disclosed that are required to be reported in

accordance with section 510(a) of OMB Circular A-133? No

Identification of major programs:

CFDA Number Name of Program or Cluster 14.235 Supportive Housing Program 64.024 VA Homeless Providers Grant and Per Diem Program 66.818 Brownfields Assessment and Cleanup Cooperative Agreements 93.600 Head Start

Dollar threshold used to distinguish between Type A and Type B programs: $300,000 Auditee qualified as (ow-risk auditee? Yes

Sect ion II - Financial S ta tement F ind ings Rnding 2010-1 Criteria; The Organization is responsible fbr providing timely and accurate financial infbnnation.

Condition: The financial statements required significant adjustments.

Effect: The financial statements required significant adjustments, the aggregate of which were material to the financial statements as a whole.

Cause: Management needed additional time to adequately review and adjust the financial records prior to commencement of the year-end field woric. and was bying to remain committed to previously committed dates and thnellne for the audit to be completed tlnrtely.

Recommendation: We recommend that the management ensure there is sufftdent time to property ttose the books fbr the year and klentify any significant adjustments to be made prior to commencement of the year-end field work by the auditors.

Sec t ion III - Federal A w a r d F ind ings and Ques t ioned Cos t s None

Pr io r Year F ind ings None

21

A ^l i l l i^ l r \ ul" M T V I L C

Vokinteers of America North U)iiisian;i

Xor lh I.iMii.viitir.i •1611 joriUm S i r t i i .' hrt,•\ .-|1l r . I (uiisiaiui ' ivi: ^m.^.ii.^(*(>9

w w w vo;uinrih!:i.nrj;

71I0I

October 29, 2010

Roberts, Cherry and Company 650 Olive Street Shreveport, LA 71104

RE: Volunteers of American North Louisiana

We offer the following corrective action to the finding noted in the audit report for the fiscal year ended June 30, 2010.

Recommendation: We recommend that the management ensure there is sufficient time to property close the books for the year and identify any significant adjustments to be made prior to commencement of the year-end field wort; by the auditors.

Response: Key accounting personnel were put in place towards the middle of the fiscal year under audit. The new accounting leam focused on corrective action related to prior year audit findings, establishing and documenting monthly close procedures, and addressing the significant amount of accounting deficiencies discovered.

In less than one year, the accounting team has achieved the goat of producing consistent and timely financial statements for management review, while also implementing procedures and technology solutions that will allow for future change and growth. Due to the volume of research and accounting adjustments required to accomplish these goals, the analyses required at year end was extensive as well. The existence of outstanding adjustments was communicated to the auditors before field work began. Audit guidance required disclosure of the adjustments.

We believe the above corrective actions taken during the fiscal year ended June 30, 2010 will benefit subsequent reporting periods and no further corrective action is required.

Sincerely,

I \ iCi uJA. ~k7Â ignature

Controller

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Documents

Shreveport, Louisiana June 30, 2010app1.lla.state.la.us/PublicReports.nsf/26E04FDFE560BF6786257807005A04B... · ^ilB Volunteers of America of North Louisiana Shreveport, Louisiana