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JuIv 9. 2008 Board rif Direc;ors Childrer's Aqvocacy Certer of Paris Amenc2 , -s.__. c- -e-if - Texas Sccietv o= Czrtrf;zd P,;bi,c ;;~co~ncan~s In piannsng and performing aur audit of the finarciai statements of the Children's Advacacy Center of Paris for the year ended Decsmber 31, 2007, we cons;dered the Center's internal control in order Fo determine our auditing procedures for ±h2 purf;ose of expressing an opinion on the financial statements and not ta provide assurance on interra' control. Accordingly, we c1o not exPress an opinion on the effectiveness on thz Center s intemai control. However, cfuring our audit, we became aware of several matters that are opportunities ;or strengthening internal controls and operating efficiency. We wiil review the status of these comments during our next audit engagement. We have already discussed many of these comments and suggestions writh various Center personnel, and we wili be pleased to discuss these comments ir further detail at your cor.venience, to perform any additional study of ihese matters, or to assist you in implementing the recommendations. Our comments are summarized as follows: Cash Disbursements b'Vhife testing cash disbursements, tive noted that a supporting invoice or ather form of documentation was not present for a number or disoursements. Proper supporting documentation shouid be kept an file for all cash disbursements to show that ±he payment was authorized and that the disbursement was for a iegitimate expenditure. Organization Budget V1/hile reviewing the Center's records, we noted that the budget provided to us by the Center was prepared in a specified format required by a grant agency and that the Center daes not prepare a budget for the Organizatior as a whole in a format that is comparable with the financiai statemert accounts. A budget shouid be prepared annual(y that includes all amounts that the Center expects ta receive and disburse during the upcoming year. This budge: should then be used to prepare reports, which compare the budgeted amounts to the actual amounts. These comparisons should be reviewed UY ! fid! ItlIJ.Cl f IC ii~.ic i~.. vv-,..Jui u Ni.,rJira.-.,ll~i anrl anv IaPC7P CIIfTP.fP.f1CeS between budqeted I ~l oi u ~ - and actuai amounts shoufd be evaluated to ensure the amounts are proper and legitimate. This report is intended solely for the information and use of the Board of Directors, management, and other within the organization and is not +nterided to be and should not be used by anyone other than these specified parties. j. i odd uuren, CrH Paris, Texas Phone: (901 785-8389 0 1323 Lamar Avenue, Sui*,e D ~ Faris, Te;cas 75460 • Fax: !9031 784-8635 r uu ~'~~~W