12-Non-profit agencies requesting fundingSubmittal Date: Originating Depart en
7/09/2009
Council Date: Finance
7/13/09
RECOMMENDED MOTION:
Not an action item.
POLICY ISSUE(S):
Fiscal Management
Presented By:
Gene Anderson
Agenda Item No.:
12.
This agenda item provides a public hearing to receive requests for funding from non-profit agencies to
be included in the 2009-10 City budget. The City has funded various non-profit agencies in ast ears
usmg professional services agreements. This practice benefits the City by avoiding duplc ati n of
services, providing services the City cannot, providing services more efficiently than the City canallowing the City to avoid certain personnel costs associated with providing the services, and allowin
the City to focus on its core functions. g
BOARD/COMMISSION RECOMMENDATION:
None
EXHIBIT:
Last five years funding history and 2009-10 budget request.
ACTION:
❑ Financial Report D Minute Order
❑ Department Report Resolution
Z Presentation El Ordinance
❑ Public Hearing Other
FISCAL NOTES:
None
BUDGET INFO:
09-10 Request
$74 000
08-09 Budget
$58,000
YTD Actual
$58,000
Acct. Name
various
Acct. Number
various
REVIEWED AND APPROVED BY:
~ Administration 0 City Clerk ❑ Community Development ❑ EMS IT
❑ Municipal Court Z Legal ~ Libra /
ry ❑ Police ❑ Eng,/public Works
City of Paris
le -UU0U35
CITY COUNCIL AGENDA ITEM BRIEFING SHEET
Z Finance ❑ Fite
❑ Utilities
Revised 2/04/08
CITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Originating Department:
Presented By:
A.genda Item No.:
7/09/2009
Council Date:
Finance
Gene Anderson
12.
7/13/09
RECOMMENDED MOTION:
Not an action item.
POLICY ISSUE(S):
Fiscal Management
This agenda item provides a public hearing to receive requests for funding from non-profit agencies to
be included in the 2009-10 City budget. The City has funded various non-profit agencies in past years
using professional services agreements. This practice benefits the City by avoiding duplication of
services, providing services the City cannot, providing services more efficiently than the City can,
allowing the City to avoid certain personnel costs associated with providing the services, and allowing
the City to focus on its core functions.
BOARD/COMMISSION RECOMMENDATION:
None
EXHIBIT:
Last five years funding history and 2009-10 budget request.
ACTION:
BUDGET INFO:
❑ Financial Report ❑ Minute Order
09-10 Request
$74,000
❑ Department Report ❑ Resolution
08-09 Budget
$58,000
M Presentation ❑ Ordinance
y`I'D Actual
$58
000
,
❑ Public Hearing ❑ Other
Acct. Name
various
Acct. Number
various
Fiscni. NoTEs:
None
REVIEWED AND APPROVED BY:
0 Administration Z City Clerk ❑ Community Development ❑ EMS/IT EE Finance ❑ Fire
❑ Municipal Court Z Legal ❑ Libraty ❑ Police ❑ Eng./Public Works ❑ Utilities
City of Paris
Revised 2/04/08
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REQUEST FOR PUBLIC FUNDING
.
ivun-pront agencies requesting funding from the City of Paris for projects that benefit th
~~b~~~Qs must complete
the following information to be eligible for consideration (you may use additional pages, if necessary U addition, please
submit with this form a copy of your agency's most recent financial statement or ~t'a
project. Agencies must also make a brief presentation on their project at a city council m~'~ budget for the
Agency Name• ~NSA -Q/; ; Date•
Agency Mailing Address: Locp
Agency Phone Number:_ 3 -1 ~ Agency Fax Number:
4/ 10~
Contact Person: Contact's Title:~l~1
Contact's Mailing Address: c~a Cat 0 a R(n
Contact's Phone Number:
Contact's Email Address: 'a r-o e ~
Name of Project:
Contact's Fax Number: ~ i~ ~ ~ -
a_
u,
r~
~
Describe how your project
AA. 11.11
'o C~ rs`f-
i rl'1~ z- i l `e-a&[ o
List other sources of funding for
the City of Paris and its citizens: IlL~f
~7 ~
~s Lv
`u.,P C'.-e_',L.n
project and the amounts:
1 " ' !3 d 1,55
Is a detailed project budget, including columns and descriptions for allocations of city funding and the agency's
matching funds, attached? ;K'yes ❑ No
Is the agency's most recent financial statement or audit attached? X Yes R No
Have you received funding from the City of Paris in the last five years for this or any other project?gYes ❑ No
If you have received previous city funding, list the name of the project, the amount of the City's award, and the
year awarded • y~~ co, J
crJn
City of Paris
~ Revised 6/10/08
a
LocationJService Area of Project:_q~a 1 11 j ( ~ ~ 1- ~ ~ ~ ~
Detailed description of project (including description of need, scope of work, methodology, who benefits, number
of beneficiaries, other project partners, etc.):_
~
V
uity ot raris
Revised 6/10/08
'0 000041
The plan for treatment is focused on keeping the victim in his/her home and removing the
risk from the child. If keeping the child safe becomes impossible, the child is removed
from the home, placed into foster care and a volunteer advocate is assigned to the child
by our agency. Providing resources and services that will reduce stress and trauma, and
ultimately produce a safer, healthier, happier and more productive child and family unit is
the ultimate goal. By providing direct service support, community referrals and education
on the criminal and civil justice systems, as well as safety prevention,
(a) victims become empowered and knowledgeable and have a higher chance of
regaining control of their own lives.
(b) the direct service activities of this project fit into the overall goals and objectives of
our organization because this project focuses on the delivery of services and aide to child
victims of crime, which is specifically the purpose of our organizations mission and
goals.
(a) We collaborate with the following organizations: Lamar County Child Protective
Services (child welfare), Lamar County District Attorney's Office (DA), Paris Police
Department (law enforcement), Lamar County Sheriffs Office (law enforcement), 106th
Judicial District Red River and County Court at Law, 6th and 62nd Judicial District
Judges-Lamar County (district judge), Lamar County Regional Medical (hospital) and 3
other small law enforcement agencies throughout our county. We work together for the
purpose -of supporting and assisting the victim during recovery
(b) The manner and frequency in which we collaborate is on an on-going, day-to-day
basis. We work child victim cases as a team and meet on a regular basis to review cases,
remaining in constant contact.
c) The benefits to a victim is that they don't get lost in an intimidating, complicated
system and their cases move more quickly through the criminal and civil justice systems.
This will aide in the healing of children who have been victimized and allows them to
get-on with their lives.
Children in Lamar County continue to be victimized by crime, abuse and neglect. Some
child victims are lucky enough to remain in their home, other child victims are not so
lucky and foster care becomes their home. No matter in the home or out, children who
are thrust into the scary, complex and nightmarish world of the criminal and/or civil
justice system, are negatively changed forever. Child victims will suffer specific victim
related issues like emotional, physical, mental and educational trauma. The question is to
what extent will they suffer, and can we soften the blow? According to the "Texas
Department of Family and Protective Services Data Books" ("Data Book"), there were
over 600 reports of child abuse made in both 2007 and 2008. In 2008, out of the 587
alleged victims only 86 children were provided services by CPS, 501 were not provided
services. In 2007, out of the 564 alleged victims, only 107 were provided services by
CPS, 457 were not provided services. In this overburdened and complex system
children are sometimes forgotten. The long-term effects of child victimization are costly
for a county.
Lamar County is a small, rural community. In 2007, 141 children where placed in foster
care, and there where 164 in foster care in 2008. According to the Data Book, the state
averages seven children per 1,000 enter foster care, but in Lamar County, every 12
children per 1,000 enter foster care. The cost of foster case expenditures for Lamar
000042
County alone were over 1.8 million dollars in 2008. A) The project specific activities
that will be done over the next two years will include direct victims services, victim
services training, outreach and community education and structured education.
The specific activities of direct victim's services will involve first-line responders
providing crisis intervention, law/court/medical accompaniment and coordination,
counseling, victim follow-up and education, and assistance with community referrals to
children and their non-offending family members in the hopes the child(ren) will remain
in the home. Through victim's services training, stakeholders in the child welfare system
will continue their education on the needs of child victims of crime and their non-
offending caregivers. With this project, law enforcement, school faculty, and medical
professionals will all receive specialized training in the treatment of traumatized and
victimized children. This will lead to a higher understanding of the long-term effects and
treatment of child victimization. This should in-turn produce a healthier community.
(A.)For children who are unable to remain in their homes because it is unsafe, community
volunteers will also become trained to provide victim advocacy for Lamar County
children in foster care. Trained volunteers will inform our children of their rights, help
them through the legal system and advocate for their best interest, assist them in their
recovery, and establish a continuum of care for our children in foster care. Every child in
foster care needs an advocate. Through outreach and community education, this project
will assist us in identifying possible child victims of crime, as well as educate the
community on the devastating affects of crime on children. The structured education
piece of this project deliver a curriculum-based presentation to student populations that
helps reach possible victims who might not otherwise be reached or provided services.
(B) These activities will help to reach the project's goal because these activities are child
victim focused and have been proven to lessen the trauma caused by abuse and neglect,
while taking strides to identify other possible victims who need our help. The system that
will be used to track and verify the project outputs has three steps:
1). An initial client in-take form will be completed for each child, that will include all
demogaphical information and child/family history.
2). The information will be in-put and tracked in a proprietary software database.
3). On a monthly and quarterly basis, management and appropriate board members will
review and assess the project's progess towards meeting it's goals and make needed
adjustments and accommodations.
Whatever information that is not captured by the databases, a tracking form will be
utilized so that direct service providers funded by this project will know when project
activities are being conducted and what is left to be done in correlation to meeting the
project's goal. Quality control testing is conducted when formal quarterly reports are
submitted by the programs to, Texas CASA and Children's Advocacy Center's Inc., a
neutral-third party for formal review. A system to measure the project's outcomes
includes four steps:
1) the utilization of a pre-service client questionnaire to assess the level of trauma and
crisis experienced by the victim at the time of in-take.
ha ~~UU~~
2) a staff inember or volunteer advocate will provide the victim with age-appropriate
materials to educate them on the criminal and/or civil justice systems, and be available to
answer questions regarding their specific case.
3) a referral form will provide victims with community referrals for services and
resources. A copy of this form will kept in the victim case file. Follow-up with the
victim will be necessary to establish the results of the referral.
4) a post-service client survey will be conducted, by a neutral third-party, to assess
whether or not the trauma and stress was reduced by the services and resources provided
by this project. If victims are unavailable to complete the pre and post service
questionnaire, a caregiver may provide the information needed.
The need is for $5,000.
Costs directly related to the day-to-day operation and will allow child victims and their
non-offending caregivers a location where they will feel safe and secure and where
services will be provided. Lamar County CASA for KIDS has and will continue to have a
diversified funding base.
We are always seeking new funding sources to ensure long-term financial support for our
projects and the children we serve. We have established a base funding in obtaining
federal and state governmental competitive grants, but will continue to increase our local
community and individual giving. We never plan for any one funding source to last
forever, but we still have children's who's needs must be met and we will continue to do
so.
'al. 000044
CASA FOR KIDS, INC.
Table of Contents
June 30, 2008
Page
Independent Auditor's Report
1
Statement of Financial Position
2.
Statement of Activities
3
Statement of Cash Flows
4
Statement of Functional Expenses
: 5
Notes to Financial Statements
g_g
Schedule of Texas CASA Grant Awards
10
Report of Findings or Exceptions
11,
DQQQ 4 U
J. TODD DUREN
Certified Public Accountant Member of
' American Institute of Certified Public Accountants
Texas Society of Certified Public Accountants
Independent Auditor's Report
September 3, 2008
Board of Directors
CASA FOR KIDS, INC.
Paris; Texas .
We audited the accompanying statement of financial position of CASA FOR KIDS, INC:
(CASA) as of- June 30, 2008, and the refated staiements of activities; functional expenses,
and cash flows for the year then ended. These financial statements are the responsibility
of: CASA's management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America. Those sfandards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining on a test basis, evidence supporting the
a'mounts and disclosures in the finanGial 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 opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial positifln of CASA FOR_ KIDS, INC. as of June 30, 2008, 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. J. Todd Duren
' Certified Public Accountant
Phone: (903) 785-8389 • 1323 Lamar Avenue, Suite D • Paris, Texas 75460 0 Fax: (903) 784-8635
1
' . . . y~o~O~~ . . . .
CASA FOR KIDS, INC.
Statement of Financial Position
June 30, 2008
Assets:. .
Current Assets:
. Cash
$
6,561
Money Market Funds
58,316
Accounts Receivable
Grants Receivable (Note B)
14,090
Total Currents Assets
78,967
Fixed`Assets (Note C)
7,688
Total Assets
$
86,655 `
Liabilities:
:
Current Liabilities:
Accounts Payable
S
-
Payroll Liabilities
686
Deferred Revenue - Texas CASA/VOCA
496
Total Currents Liabilities
1,182
Net Assets:
Temporarily Restricted
24,458
' Unrestricted
61,015
Total Net Assets
85,473
, Totalliabilities
and Net Assets :
$
86,655
' The accompanying notes are an integral part of these fin
ancial statements.
-2-
p0OC48
_
CASA FOR KIDS, iNC.
Statement of Activities
For the Year Ended June 30, 2008
Temporarily
Unrestricted
Restricted
Total
Support:
Grants
$ 113,124
13,207 $
126,331
Donations
18,723
-
18,723
Fundraisers
10,334
-
10,334
Interest Income
864
864
Misceltaneous
1,089
-
1,089
, Net assets released from restrictions:
Restrictions satisfied by payments
3,364
(3,364)
: -
Total.Support
147,498
9,843
157,341
Expenses:
Program Services :
117,659
-
117,659
Management and General
32,108
-
32,108
Fundraising
1,326
_
1;326
Total Expenses
151,093
-
151,093
Change in Net Assets
(3,595)
91843
6,248 ,
Net Assets at Beginning of the Period
64,610
14,615
79,225
Net Assets at End of the Period
$ 61,015
$ 24,458 $
85,473
The accompanying notes are an i
ntegral part of these
financial statements.
-3-
pOQ~49
CASA FOR KIDS, INC.
Statement of Cash Flows
For The Year Ended June 30, 2008
Cash Flows Provided by (Used for) Operating Activities:
Change in Net Assets $
6,248
Adjustments to Reconcile Change in Net Assets
to.Cash Provided by (Used for) Operating Activities:
Depreciation
2;676 .
' Decrease(Increase) in Grants Receivable
(5,871)
Increase(Decrease) in Accounts Payable
(1,275)
Increase(Decrease) in Deferred Revenue :
(11,401)
Increase in Net Assets due to Reclassification of Deferred Revenue
11,312
Cash Provided by (Used for) Operating Activities
1,689
Cash Flows Provided by (Used for) Investing Activities:
Purchases of Property and Equipment
(6,000)
; Cash Provided by (Used for) Investing Activities
(6,000)
Net Increase (pecrease) in Cash and Cash Equivalents
(4,311)
Cash and Cash Equivalents, June 30, 2007 ,
69,188
Cash and Cash Equivalents, June 30, 2008. $
64,877
IStatement of Financial Position Captions: .
Cash $
6,561
Money Market Funds
58,316
$
64,877
The.accompanying notes are an integral part of these financial statements
.
-4-
•
0OQU50
.
CASA FOR KIDS, INC.
Statement of Functionai Expenses
For The Year Ended June 30, 2008
Program
Management
Fund
Functional Expenses
Services
and General
Raising
Totals
Payroll Costs:
Personnel Costs
$ 93,018
$ 6,264
$ " 99;282
Contract Labor
9 Months Plus Teacher
11,548
5,186
16,734
Total Payroll Costs
104,566
11;450
-
116,016
Accountin9
2,344
-
21344
Dues-Subscriptions
-
378
-
378
Ut+lities
1,700
2,271
-
3,971
Other
1,279
2,180
-
3,459
Postage & Shipping
615
358
-
973
Telephone
1,000
420
-
11420
Volunteer Incentives
gp
758
_
848
Printing and Publication
1,550
-
-
1,550
Equipment Expense
-
70
-
70
Maint. & Repairs
300
408
-
708
Supplies
444
2,357
-
2,801
Raffle Playhouse
-
-
1,000
1,000
Rent
1,200
-
. -
1,200
Training
-
425
425
~ Travel & Meals
1;393
6;229
-
7,622
Vehicle Expense
312
312
In-Kind Expense
846
-
_
846
Fundraising Expense
-
-
326
326
Insurance
2,148
2,148
Total Expenses Before Depreciation
114,983
32,108
1,326
148,417 .
Depreciation
2,676
2;676
Total Functional Expenses
$ 117,659
$ 32,108
$ 1,326
$ 151,093
The accompanying notes are an integral par
t of these financial
statements.
-5-
. Q00051
CASA FOR KIDS, INC.
Notes to financial Statements
June 30, 2008
Note A: Nature of Activities and Significant Accounting Policies
Nature of Activities
The CASA FOR KIDS, INC. (CASA) was formed in 1997 as a nonprofit,
organization with a mission to teach and promote child abuse prevention. CASA
works in conjunction with local law enforcement, child protective services, and the.
county attorney's office to provide court appointed special advocates for these
victims. CASA is supported primarily by grants and donations from the public.
Basis of Accounting .
The accompanying financial statements have been prepared on the accrual basis
- of accounting in accordance with generally accepted accounting principles.
Financial Statement Presentation
CASA has adopted Statement of Financial Accounting Standards (SFAS) No. 117;
Financial Statements of Not-for-Profit Organrzations. Under SFAS No. 117, CASA
is required to report information regarding its financial position and activities
according to three classes of net assets: unrestricted net assets, temporarily
restricted net assets, and permanently restricted net assets. In addition, CASA is
required to present a statement of cash flows. Net assets of CASA and changes
therein are classified and reported as follows:
Unrestricted net assets - Net assets that are not subject to donor- imposed ,
stipulations.
Temporarily restricted net assets = Net assets subject to donor-imposed
stipulations that may or will be met, either by actions of CASA and/or the
passage of time. When a restriction expires, temporarily restricted net assets
are reclassified to unrestricted net assets and reported in the statement of
activities as net assets released from restrictions.
Permanently restricted net assets - Net assets subject to donor-imposed
stipulations that may be maintained permanently by CASA. Generafly, the
donors of these assets permit CASA to use all or part of the income earned on
any related investments for general or specific purposes.
CASA FOR KIDS, INC.
Notes to Financial Statements (continued)
June 30, 2008
Note A: Nature of Activities and Significant Accounting Polices (continued)
Contributions
CASA has also adopted SFAS No. 116, Accounting for Contributions Received
and Contributions Made. Contributions received are recorded as unrestricted,
temporarily restricted, or permanently restricted support depending on the
existence or nature of any donor restrictions.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires. management to make estimates and assumptions
that a#fect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates. -
Fixed Assets
If is CASA's policy to capitalize property and equipment over $500. Lesser
amounts are expensed. Purchased property and equipment is capitalized at cost.
Donations of property and equipment are recorded as support at the estimated fair
val.ue. Such donations are reported as unrestricted support unless the donor has
restricted the donated asset to a specific purpose. Assets donated with explicit
restrictions regarding their use and contributions of cash t.hat must be used to
acquire property and equipment are reported as restricted or temporarily restricted
support. Absent donor stipulations regarding how long `those donated assets must
be maintained, CASA reports expirations of donor restrictions when the donated or
acquired assets are placed in service as instructed by the donor: CASA
reclassifies temporarily restricted net assets to unrestricted net asse#s at that time.
Revenue Recognition
Contributions received are recorded as increases in unrestricted, temporarily
restricted, or permanently restricted net assets; depending on the existence and/or
nature of any donor restrictions.
All donor-.restricted contributions are reported as increases in temporarily or
permanently restricted net assets, depending on the nature of the restriction.
When a restriction expires (that is, when a stipulated time restriction ends or
-7-
000053
CASA FOR KIDS, iNC.
Notes to Financial Statements (continued)
June 30, 2008
Note A: Nature of Activities and Significant Accounting Policies (continued)
purpose restriction is accomplished); temporarily restricted net assets are reported
in the statement of activities as net assets released from restrictions.
Contributed Services'
Donated services are recognized as contributions if the services require specialized
skills, are performed by people with thpse skills, and would otherwise be
purchased by CASA. Volunteers that provide other such services throughout the
year are not recognized as contributions in the financial statements.
Income Taxes
CASA is a not-for-profit organization that is exempt from income taxes under
Section 501(c)(3) of the Intemal Revenue Code and as such is not subject to
income taxes.
Cash and Cash Equivalents
For purposes of the statement of cash flows, CASA considers all highly liquid
investments with an initial maturity of three months or less to be cash equivalents.
Expense Allocation
Directly identifiable expenses are charged to programs and supporting services.
Expenses related to more than one function are charged to programs and
supporting services on the basis or periodic time and , expense studies.
Management and general expenses include those expenses that are not directly
identifiable with any other specific functions but provide for the overall support
and direction of CASA.
Note B: Grants Receivable
Grants Receivable at June 30, 2008, are as follows:
VOCA $ 5,456
Texas CASA 4,878
Swalm Foundation 3,756
Total 14,090
-8-
0OU054
CASA FOR KIDS, INC.
Notes to Financial Statements (continued)
,lune 30, 2008
Note C:' Fixed Assets
; Plant assets are stated at cost or estimated fair value. Depreciation is allocated to
depreciable assets using the straight-line method over estimated useful lives of
, thirty years for buildings and five years for equipment and fixtures.
Details of fixed assets are as follows:
Office Equipment 14,565
Computer Equipment 9,612
rurniture and Equipment 800
Vehicles 1,870
Less accumulated depreciation (19,159)
Total 7,688
Note D: Restrictions on Assets
Since 2003 CASA has received a total of $53,000 from the Lennox Foundation to
#und programs for parenting and pregnant adolescents, and for child abuse
prevention. As of June 30, 2008 CASA has spent $31,749 of these donated
funds.
Note E: Commitments and Contingencies
CASA receives funding or reimbursement from government agencies which are
subject to specific compliance requirements, review, and audit by grantors or their
representatives. Such audits could result in request for reimbursement by the
grantor agency for expenses disallowed under the terms and conditions specified
in the grant agreements. In the opinion of management, there are no significant
contingent lia6ilities relating to compliance with the rules and regulations
governing the respective grants; therefore, no provision has been recorded in the
accompanying financial statements for such contingencies.
Note F: Restatements and Reclassifications
Certain amounts from the prior fiscal year have been restated and reclassified to
conform to current-year presentation. The July 1, 2007 beginning net assets as
originally reported has been changed to reflect the reclassification of amounts
previously reported as deferred revenue to temporarily restricted net assets.
-9-
p00C55
CASA FOR KIDS, INC.
SCHEDULE OF TEXAS CASA
, INC.
GRANT AWARDS
FOR THE YEAR ENDED JUNE 30, 2008
' .
ACCRUED OR
ACCRUED OR
PROGRAM (DEFERRED)
(DEFERRED)
GRANTOR/
O'R AWARD REVENUE AT
DISBURSE-
REVENUE AT
PROGRAM TITLE
AMOUNT 07/01 /07 RECEIPTS
MENTS
06/30/08
Texas CASA, Inc. CVC/OAG
2007 Program cvc-07-45
$ 30,138 $ (143) $
6,018
$
6,169 :
$ -
2008 Program cvc-08-45
28,816 -
21,860
21,596
(264)
$ (143) $
27,878
$
27,757
$ (264)
Texas CASA, VOCA
VA-03-V30-
2008 Program 13543-08
$ 65,468 $ (442) $
65,468
$
65,678
$ (232)
$ (442) $
65,468
$
65,678
$ (232)
TOTAL
$ (585) $
93,346
$
93,435
$ _ (496)
-10-
0OOG56
CASA FOR KIDS, INC.
. Report of Findings or Exceptions
June 30,2008
Were there any findings or exceptions?
YeS X no
If yes, please describe below:
-11-
GOOU57
Budget for Project Nine Months PLUS/Parenting
Salary for part time teacher---------- $13,500 a year
C,tyofParis----------- $5,000 RECEIVED
St. Josephs' Foundation-------- $8,500
CITY MANAGFIt
PARIS, TEXAS
Budget for ONE TIME Building FUND Donation
Materials for repairs: $8,568.31
Labor for repairs: $34,500.00
Roof: $6,000.00
Electrical: $4,000.00
Computer/Internet Readiness $991.00
Telephones Installed $1,500
Remove old flooring and clean floors $3,000
Paint trim and replace trim $1,200
Ceiling repair from leaking roof $1,800
GRAND TOTAL: $43,069.31
City of Paris----- $5,000
Meadows Foundation -----------$25,000
Donated Labor--------- $12,000.00
Donated monies from citizens---------- $1,069.31
600658
The Children's Advocacy Center of Paris
2009
Funding Request
Submitted
To
The City of Paris - Police bepartment
Amount Requested: $12,500.00
Contact Information: Mitzi White, Executive Director
(903) 784-5787
Am 000059
The Children's Advocacy
Center of Paris
P.O. Box 536, Paris, Texas 75461
Phone: 903-784-5787
FarY: 903-784-7104
www.cacparis.org
Ju►e is, 2009
Interim Chief Bob Hundley
Paris Police Depurtment
2910 Clnrksville St.
Paris, Texas 75460
Denr Chief Hundley:
The Children's Advocacy Center of Paris (CAC) is n privnte non-profit orgnnization. As you nlre4dy know, CACs
were started so thnt when children had to be interviewed nbout possible sexuwl and/or physical nbuse, there wns a
neutrnl, non-threatening place for the child to come. By reducing the number of times these children rnust shnre
the details of the abuse, nnd hnving all of the departments thnt investignte child nbuse come together in one
location for the benefit of the child, we can lessen ihe trnumn for these innocent victims. Services provided by
the Center include but ure not limited to forensic interviews (which serve as an investigntive tool for all agencies
involved), medical and mental health services, cnse trncking, team coordinntion, court testimony nnd court
accompaniment for victims and their fumily members. Estnblished in 1999, the CAC hns served 2,268 children nnd
their non-offending fnmily members. The nvernge number of children served per yenr is 235. Approximntely 60%
of all children served by the Center live in the city of Pnris. The CAC is proud of the work thnt we hnve been able
to nccomplish by working as a tenm with the Paris Police Depnrtment, Child Protective Services and the County
Attorney's Office.
Although we are n non-profit orgnnizntion, we still hnve all of the dny to day opernting expenses nssocinted with
running a small busiriess. As we do not chnrge tor ony of the services provided, we must look to the community,
our inter-agency pnrtners and foundntions/grants for finnncial nssistance. Between successful grnnt requests and
local fundraising, we nre nble to raise n substnntial nmount of our operating expenses. However, many of our grants
nre match grnnts or designnted grnnts, meaning funds may only be spent for certuin allownble expenses. Mnny
foundations prefer to fund new projects, etc. instend of providing funding for daily opernting expenses. We must
continue to seek funding sources to offset daily opernting expenses. The amount of 12 500 that we are
requesting from the Pnris Police Depnrtment/City of Paris is essentinl to the continued operntion of the Center
especinlly during n time when the costs of utilities continues to rise. Securing the requested funding ensures that
the CAC is able to provide the services required every ti►ne thnt we nre colled by police investigntors.
We appreciate the work that you and the Pnris Police Depnrtment do to protect children in Paris and we are glad
thnt we cnn assist in this endeuvor.
Sincerely, ~
Mitzi White
Executive Director
Making a difference in the lives of abused children
S + ~
. 000060
REQUEST FOR PUBLIC FUNDING
Non-profit agencies requesting funding from the City of Paris for projects that benefit the citizens of Paris must complete
the following information to be eligible for consideration (you may use additional pages, if necessary). In addition, please
submit with this form a copy of your agency's most recent financial statement or audit and a detailed budget for the
project. Agencies must also make a brief presentation on their project at a city council meeting.
Agency Name: The Children's Advocacy Center of Paris
Date: 6/1/09
Agency Mailing Address: P.O. Box 536, Paris, Texas 75460
Agency Phone Number: (903) 784-5787
Agency Fax Number: (903) 784-7104
Contact Person: Mitzi White Contact's Tetle: Executive Director
Contact's Mailing Address:
Contact's Phone Number: same
Contact's Fax Number: same
Contact's Email Address: mitziwhitel0@yahoo.com
Name of Project: The Children's Advocacy Center of Paris
Location/Service Area of Project: Lamar County & Red River County
Summary of Project: The mission of the Children's Advocacv Center of Paris (CAC) is to protect and aromote t6e
healing of children who are victims of sexual and/or Ahvsical. The CAC provides a friendlv home-like atmosphere
which utilizes a multidisciplinary team approach to the investigation of child abuse cases. The team consists of
representatives from Child Protective Services, the Police Department, the County/District Attornev's Office and
the Sheriff's Denartment in the service area.
Describe how your project will benefit the City of Paris and its citizens: The proiect benefits the Citv of Paris bv
providiniz a neutral settinE for the investieation nrocess. Aaarozimately 60% of the children served live in the City
of Paris. The CAC arovides services to approzimatelv 20-25 children each month
List other sources of funding for this project and the amounts: VOCA Grant -$54,000; CAC TX Grant --$48,000;
United Wav of Lamar County -$15,000; National Children's Atlicance -$10.000 ; Lamar County 47,000;
Fundraisina and Private Donations
Is a detailed project budget, including columns and descriptions for allocations of city funding and the agency's
matching funds, attached? Yes X No
Is the agency's most recent financial statement or audit attached? X Yes ❑ No
Have you received funding from the City of Paris in the last five years for this or any other project? X Yes ❑ No
If you have received previous city funding, list the name of the project, the amount of the City's award, and the
year awarded:
Proiect--Children's Advocacv Center
2007 - $11,500
2008 - $11,500
(1 f? C 1 Revised 6/10/08
City of Paris Q0llUV1
Detailed description of project (including description of need, scope of work, methodology, who benefits, number
of beneficiaries, other project partners, etc.): The Children's Advocacy Center of Paris (CAC) is a
private non-profit 501 c 3 orqanization The purpose of a CAC is to reduce the trauma faced bv
children and their non-offendinq familv members by usinq a multidisciplinary team approach to
investiqations. This team is made up of representatives from the CAC the Countv/District
Attornev's Office, local law enforcement agencies and Child Protective Services Children involved
in investiqations of abuse are now brought to one location a large two-story house designed to be a
neutral, child-friendly place for families to come durina the investiqation process Representatives
from each aqencv involved meet at this location to collaborate on each case Child victims are
interviewed bv one person a forensic interviewer, trained to talk with children about these
situations. A forensic interviewer is trained to elicit information from children in a non-leading non
threatenina manner that is leqally defensible and will stand up in court The interview is viewed bv
the other professionals involved through a closed-circuit camera system Every effort is made to
ensure that all information is obtained in one interview so that the child does not have to repeat
details of abuse over and over aqain CAC staff members then provide follow up services for
families and are available to assist them as their case makes its way through the criminal iustice
svstem. Established in 1999 the CAC has served 2,268 children and their non-offendinq family
members. The averaqe number of children served per year is 235 Approximately 72% of all
children served bv the Center live in Lamar County and 60% of atl the children served live in the
City of Paris.
Since its inception, the CAC has continued to expand its services to better meet the needs of child
victims and their non-offendinq familv members The Center was awarded a Meadows Grant in
2003 which allowed the qurchase of a house next to the original facility This facility currently
houses the onsite medical component the Rainbow Rooms and provides an alternate interview
room. The CAC currentlv provides onsite sexual assault exams bv hiqhly trained Sexual Assault
Nurse Examiners (SANEs). The Rainbow Room is an emerqency resource room for children
involved in CPS investiaations and for children beinq placed in foster care Other services include
but are not limited to: court accompaniment assistance with Crime Victim's Compensation claims
and mental health referrals. This vear a mental health component was added to our services to
include an on-site counselor that the Center uses for referrals of victims and their non-offendinq
familv members.
City of Paris 0 0 0 66 2 Revised 6/10/08
~
The Chiidren's Center, Inc.
dba
Children's Advocacy Center of Paris
Financial Statements
December 31, 2007
•a 000063
I
The Ghildren"s Center, Inc.
dba Ghitdren's Advocacy Center of f'aris
Table of ConLents
December 31, 2007
indepencient Auditor's Report
Sfiaiement of Financial Position
Statement of A,ctivities
Statemerit ot Functional Expenses
Statement of Cash Flows
Notes to Financial Statements
RePort an Internal Control over Financiai Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
Pae
1
2
3
4
5
6-9
10-1 i
000064
Certified Puoiic Accountant
~
~
~
j
Member of
Ame-+can f-ss~;:;;a of Cert fisc' Pue!ic Acca:;ntan-
s
Texas Societ} of Czrtified Pubhc Accountants
Independent Auditor's Report
Jufy 9, 2008
Board of Directors
The Chiidren's Center, fnc.
~ dba Children`s Advocacy Center of Paris
Paris, Texas
We have audited the accompanying statement of financial position ot The Children's Center,
Inc. dba Children's Advocacy Center of Paris (a nonprofit organization) as of December 31,
2007, and the related statements of activities, functional expenses, and cash flows for the
~ year then ended. These financial statements are the responsibility of the Center's management.
Our responsibility is to express an opinion on these financial statements based on our audit.
~ We conducted our audit in accordance with auditing standards generaily accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of materiat 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 opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects,
~ the financial position of Children's Advocacy Center of Paris as of December 31, 2007, and the
changes in its net assets and its cash flows for the year then ended in conformity with
accounting principfes generally accepted in the llnited States of America.
D,~--~-----
~
J. Todd Duren
Certified Public Accountant
Phone: (903) 735 8389 • 1323 Lamar Avenue, Sui[e D • .~~00 • Fax: (903) 784-8635
-1-
, 000065
Children's Advocacy Center of Paris
Statement of Financiaf' ?o;ition
December 31, 2007
Assets:
Current Assets:
Cash tquivalents ( PJote B)
Accour,Ts Receivable ( Note C)
Total Current Assets
Fixed Assets (Note D)
Total Assets
Liabi(ities:
Current Liabilities:
Accounts Payable
Current Portion of Long-term Debt
Total Current Liabilities
Long-term Note Payabie
Lamar Nationaf Bank Line of Credit
7otaf Liabilities
f\let Assets:
Unrestricted
Temporarily Restricted
Total Net Assets
TotaP Liabilities
and Net Assets
The accompanying notes are an integral part of these financial statements.
-2
Unrestricted
$ 1 8,41 3
8,063
26,476
? 57,847
$184,323
$4,31 1
3,270
7,581
1,194
10,000
18,775
165,548
165,548
$?84,323
• GOOC66'
Children's Advocacv Csnter of Paris
Statement of Activities
For the Year Ended December 31, 2007
Support:
Dcnations
Fundraisers
Grants
!n-Kind Contributions
inierest Income
Totai Suppart
Expenses:
Program Services
Management and General
Fundraising
Total Expenses
Gharsge in Net Assets
Net Assets at Beginning of Year
Ne# Assets at End of Year
The accompanying notes are an integra( part of these financial statements.
-3-
Unrestr'_-= -
1 Lr-
i
2`-
178.=' ~
$1";
.M 0OClU67
Chilciren's Advocacy Center of Paris
Statement cf Cash Fiows
For ihe Year Ended Decemher 31, 2007
Cash Flows Provided by (Used for) Operating Activities:
Change in Net Assets
Adjustments to Reconcife Change in Net Asseis
to Cash Provided by (Used for) Opera±ing Activi*ies:
Depreciation
Decrease(lncrease) in Accounts rseceivable
Increase(Decrease; in Accounts Payable
Cash Provided by (Used for) Operating Activities
Cash Flows Provided by (Used for) tnvesting Activities:
Purchases of Property and Equipment
Cash Provided by (Used for) Investing Activities
Cash Flows Provided by (Used for) Financing Activities:
Proceeds from Note Payable
Payments on Note Payable
Cash Provided by (Used for) Financing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, December 31, 2006
Cash and Cash Equivalents, December 31, 2007
Supplemental Data:
Interest Paid
Income Taxes Paid
The accompanying notes are an integral part of these financial statemenTS.
-4
( $12,864)
1 C, 443
5,763
2,484
5,826
10,000
(3,507)
6,493
12,319
6,094
$18,413
$306
y. 000068
Children's Advocacy Center of Paris
Statement of Funct;nnal Expenses
For the Year Ended December 31, 2007
Prcgram
Management
Fund
FunctionalExpenses:
Services
& General
Raising
T` ta!s
Personnel
$7^a,290
19,573
-
$97 853
Fayroll Taxes
5,989
1
497
-
7
48E
1
,
Total Salaries and Reiated
84,279
21,070
-
105.349
Accounting
4,485
2,990
-
475
7
Bank Charges
_
22
_
,
22
interest
`
306
-
306
Qirector
s Expense
_
50
_
50
Dues and Subscriptions
-
2,985
-
2
985
Fuiidraising expenses
-
-
19,123
,
19
123
U,llities
9,09?
3,030
-
,
12
121
postage and Shipping
-
1,068
-
,
1
068
Telephone
4,079
1,359
-
,
438
5
Office Expense
2:723
2,724
287
,
5
734
Counseling
938
-
-
,
938
Printing and Publication
-
1,635
-
1
635
Equipment Expense
508
509
_
,
1
017
Maintenance and Repairs
8,458
2,820
-
,
11
278
Meals
'
1,914
-
-
,
1
914
Children
s Suppiies
6,086
-
-
,
6
086
Training
8,753
972
-
,
9
725
Travel
1,666
1,666
-
,
3
332
ir,-Kind
2,285
-
-
,
2
285
[nsurance
5,593
621
-
,
6
214
Other
-
295
-
,
295
Total Expenses Before Depreciation
140,858
44,122
19,410
204,390
Depreciation Expense
7,832
2,611
-
10,443
Total Functional Expenses
$148,690
46,733
19,410
214,833
The nCCry;ppartVinc7 nntP,s arg an intgnral part nf thacP fingnrjal ctatampntc_
-5-
'a 000069
Chiidren's Advocacy Center of Parfs
Noies to Financiai Sratements
December 31 , 2007
Afo*e A: Nature of Activities and Significant Accounting Policies
Nature of Activities
The Children's Advocacy Center of Paris 'the Center) was fcrmed in 1998 as a norprofi:
organization wfth a mission to protect and promote the healing of child abuse victlms. The
Center works in conjunction with local law enforcement, cnild protective services, and the
county attomey's office to provide a child iriendly location for these victims. ?he Center ;s
supported primarily by grants and donations from the pubiic.
Basis of Accountin
The accompanying financiai statements have been prepared on the accrual basis of
accounting in accordance with generaily accepted accounting principles.
Financial Statement Presentation
The Center has adopted Statement of Financiaf Accounting Standards (SFAS) No. 117,
Financial Statements of Not-for-Profit Organrzation. Under SFAS No. 117, the Center is
required to report information regarding its financial position and activities according to
three classes of net assets: unrestricted net assets, temporarily restricted net assets, and
permanently restricted net assets. In addition, the Center is required to preseni a
statemertt of cash flows. Net assets of the Center and changes therein are classified and
reported as follows.
Unrestricted net assets - Net assets that are not subject to donor-imposed
stipulations.
Temporarily restricted net assets - Net assets subject to donor-imposed stipulations
that may or will be met, either by actions of the Center and/or the passage of time.
When a restrict+on expires, iempvrarily restricted net assets are reclassified to
unrestricted nst assets and repcrted in the statement of activities as net assets
released from restrictions.
Permanently restricted net assets - Net assets subject to donor-imposed stipulations
that may be maintained permanentiy by the Center. Generally, the donors af these
assets permit the Center to use aii or part oi tne income earned uH d;,Y :e!ateU
investments for genera( or specific purposes.
-6-
. 000070
Children's Advocacy Genter of Paris
Notes to Financia! Statements (continued)
Decem~_-,e- 311, , 2007
Nate A: ;lfature of Activities arrd 5ignificant Aceauntit}g Policies (continued)
Use of Estimates
I he preparation of financial statemen:s n conformfty with genesaliy accepted acceunting
Grinciples requires management to ma~;e estimates and assumptions that affect certair
reported amounts and disclosures. Ar,co-dingly; actual results could differ trom those
estimates.
Property and Equi ment
It is the Center's policy to capitalize property and equipment over $1,000. Lesser amounts
are expensed. Purchased property and equipment is capitalized at cost. Donations of
property and equipment are recorded as support at the estimated fair value. Such
donations are reported as unrestricted support unless the donor has restricted the donated
asset to a specific purpose. Assets donated with explicit restrictions regarding their use
and contributions of cash that must he used to acquire property and equipment are
reported as restricted or temporari!y restricted support. Absent donor stipulations
regarding how long those donated assets must be maintained, the Center reports
exoirations of donor restrictions when *.he donated flr acquired assets are placed in service
as instructed by the donor. The Center reclassifies temporarily restricted net assets to
unrestricted net assets at that time.
Revenue Recoqnition
Contributions received are recorded as increases in unrestricted, temporarily restricted, or
permanently restricted net assets, depending on the existence and/or nature of any donor
restrictions.
All donor-restricted contributions are reported as increases in temporarily or permanently
restricted net assets, depending on the na?ure of the restriction. When a restriction expires
(that is, when a stipufated time restriction ends or purpose restriction is accomplished),
temporarily restricted net assets are reported in the statement of activities as net assets
released from restrictions.
Contributed Services
Donated services are recognized as contributions if the services require specialized skills,
are performed by people with those skills, and would otherwise be purchased by the
Center. During the year ended December 31, 2007, the value of contributed services
meeting the requirements for recognition in the financial statements was not material and
has not been recorded. In addition, many fndividuals voiunteer their time and pe-form a
variety of task that assist the Center, but these services da not meet the criteria for
recognition as contributed services.
-7-
000071
Children`s Advocacy Cenier of Paris
N02ES E^v FSlldr~'ai S`a'F'rT'PilrS !r'nFl'(fZE.i2CI'
December 31 2007
No.e A: Nature ot Activities and Significant AccoLinting Policies (continued)
[ncome -~axes
The Cen*°r is a not-for-profit organizat:on thar is exempt from income taxes under Section
501 (c)i3i of ±he Intemal Revenue Code ard as such is not subject to income taxes.
Cash and Cash Equivalents
~cr Purposes of zhe statement of cas" flo,vs, the Center considers aN h,ghly Ifquid invest-
ments available for current use wi"th, an irntia; maturity of three months or less to be cash
eGuivai2nis.
Note 8: Cash Equivaients
Cash Equiva:ents are comprised of the following at December 31, 2007:
Lamar National Bank Checking Accounis $17,767
Lamar fVational Bank Savings Account 646
Totai s 18,413
Note C: Accounts Rsceivable
Accounts Receivable at December 31, 2007, are as foliows:
Chiid Adv.ocacy Center of Texas $3,500
State o'i' Texas - VOCA 4,563
Receivable in less than one year $8,063
tVote G: Property, Plant and Equipment
Plant assets are stated at cost or estimated fair value. Depreciation is ailocated to deprec-
iabfe assets using the straight-line method over estimated u
sefui lives ot thirty years fior
buildings and five years fo; furniture and equipment.
Property and equipment consisted of the following at December 31, 2007:
Land
$13,463
Land Improvements
11,633
8uildiri9 30 years
1 65,007
Furniture and Equipment 5-7 years
53,816
Less acrumulated depreciatior
243, 31 9
(86,072)
Totai
$1 57,847
-8-
QOOC72
~
~ Children`s Advocacy Center of Paris
Notes to Financial StLterr;ents (continuedi
December 2007
t
' Note E: !\!otes Payable and Long-Term Debt
The following is a summary of long-term ci-;;t a; December 31, 2007:
~-~0°o note payable to Guaranty Bond 8an!<, secured by reai property.
°ayments af principal and interes± are duc ,,orthiy through March 2, 2009, ~
_5 4
A, r.ticipated maturi?ies of the note for the years ending Qecember 31 are as tofiov:;s:
~ 2008 $3,270
2009 1,194
4,464
~ The Center also has an avaiiable line of credit vuiith Lamar National Bank in the amount of
$10,000. At December 31, 2007; the center nad a balanced owed of $10,000 on that iine
of credit.
~ Ncte F: Resirictions on Assets
fn „anuary of 2001, the Center started the Rainbaw Room to provide emergency resources
~ to the children involved with foster care, child protective services or law enforcement. The
Center received donations to stock this room. During the year ended December 31, 2007,
$2,285 was received in donations specific to the room.
~ There were no permanently restricted net assets as of December 31, 2007.
0
. 000073
e kjLju IJt.1nClV
/iCA~,oc`3,'
I`i:l'.!?lhE'' '
Amen:rr: i --Irc ~ = Ca:- ,
Texas Soc~etv o C„•:ifed
,t~rts
P,EPORT ON INTERNAL CONTROL OVER FIivA1VC!AL
REPOf7j?!N1G ANU OIV CGPJIPLIAP`CE .AND OTHER MATTCRS BASCC OiNI
AN P,UD!T OF F(NANC!AL STATEMENTS PERFORMED
,N ACCORDANCt Vl/ITH GC}VERNNIENT AUDITlNG STAPdCARCc
Ju;v G, 2008
Baard of Directors
Children's Advocacy Center of Paris
1,Ve have audited the financial statements of Children's Advocacy Center of Paris (a nonprofit
corporation) as of and for the year ended December 31, 2007, and have issued our report
thereon dated July 9, 2008. We conducted our audit in accordance with auditing standards
generai3y 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.
Internal Controi over Financial Reportinq
in p{arning and performing our audit, vve considered Children`s Advocacy Center of Paris's
irtemaf control over financial reporting a basis for designing aur auditing procedures for the
purpose of expressing our opinion on the financial statements, but not for the purpose of
expressing an opinion on the ef#ectiveness of the Children's Advocacy Center of Paris's interna(
cantroE over financial reporting. Accordingly, we do not express an opinion on the effectiv2ness
of the Center's internal controi over financial reporting.
A control deficiency exists when the design or operation of a control does not allow
managemen# or employees, in the normal course of performing their assigned functions, to
prevent or detect misstatements on a time{y basis. A significant deficiency is a controi
deficiency, or cambination of control deficiencies, that adversely affects the organization's
ability to initiate, authorize, record, process, or report financial data re(iably in accordance with
generaiiy accepted accounting pnnciples, such that there is more than a remote iikelihood that
a misstatement of the organization's financial statements that is more than inconsequential wili
nat be prevented or detected by the organizaticn's internal control.
A materia( weakness is a significant deficiency, or combination or significant deficiencies, that
results in more than a remote like{ihood that a material misstatement of the financial
siatements will nat be prevenied or detecteci by the organization's internai control.
Our consideration of internal contro( over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessari{y identil'y ali
' _i:,-,..~.~~,- ~n!° ~f~ n0: 1lr~ntiffi an~f rtofi
riPn~iP.~ Ir? lntBPil3i ~Ontf01
QBTlClB(1C185 UI I IlctiCi ia~ 'vVcani ~caoco. v~. 11over finariciai reporting that we consider to be material weaknesses, as defired abave.
Phane: Ig03; 785-83pq s ~2-1- Larar S, i ite u •
Pans. Texas 7546~D • Fax;9031 724-8635
- 10-
+ 0 U 6 6 7 1,
Comp Liance and Oiher fViatters
As part of obtaining re_asonable assurancs about whether Children s Advocacy CQnter of Paris's
financial staiements are free of materia( misstatement, we performed tests of its comp!iance
vvith certain provisions of laws, regulatians, contracts, and grant agreements, noncompliance
wi±h wh;ch could 'nave a direct and materiai effect on the determirat~or. of financial statement
amcunts. However, providing an opinion on compliance witn thcse provisions ',,vcs not an
objective of our audit, and accordingly, we do rot express such an opinion. The resuits of ou;
tests disclosed no irstances of noncornpliance that are required te be repor'Led Under
Cjoverr:meni Auditing Stat,dards.
This report is intercled solely for the information and use of managemen±, the Board of
Directors, and federal awarding agencies and pass-through ertities ard is not intended to be
and should not be used by anYone other than these specified parties.
J. Todd Duren, CPA
Paris, Texas
- 11 -
- 000075
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
REQUEST FOR PUBLIC F'UNDING
Non-profit agencies requesting funding form the City of Paris for projects that benefit the citizens of Paris must complete
the following information to be eligible for consideration (you may use additional pages, if necessary). In addition, please
submit with this form a copy of your agency's most recent financial statement or audit and a detailed budget for the pro-
ject. Agencies must also make a brief presentation on their project at a city council meeting.
Agency Name: East Texas Council on Alcoholism and Drug Abuse Date: 4/24/09
Agency Mailing Address: 708 Glencrest Lane Loneview TX 75604
Agency Phone Number: 903.756.7633
Agency Fax Number: 903.753.0574
Contact Person: Susan Erwin
Contact's Title: Executive Director
Contact's Mailing Address: 708 Glencrest Lane Loneview TX 75604
Contact's Phone Number: 903.247.9646 Contact's Fax Number: 903.753.0574
Contact's Email Address: serwin(c~etcada.com
Name of Project: _ 1) Access to Recoverv 2) School-Based Prevention Program & 3) Juvenile Probation Pro ram
Location/Service Area of Project: 1) Access to Recovery is located at the Paris ETCADA office at 3737 Lamar Ave
#200. 1t provides access to treatment services for residents of Lamar County. There are other ATR offices throughout
northeast Texas serving 22 additional counties. 2) School-Based Prevention Pro rams serve Paris ISD and North Lamar
ISD students in grades 3-8. 3) Juvenile Probation Programs - this is an intensive intervention program that serves youth,
ages 14-17, who are in the Lamar County juvenile justice system.
Summary of Project: Access to Recovery: Licensed Chemical Dependency Counselors provide confidential services for
individuals seeking treatment for alcoholism and/or drug addiction. ETCADA's counselors conduct clinical screenings
and assessments to determine the severity of alcohoUdrug problem and then make the most appropriate referral to treat-
ment services. ETCADA's after-hours Crisis Help Line provides free, confidential and immediate assistance 24 hours
/seven days per week.
School-Based Prevention Progranzs: Using research-based curricula with proven outcomes, trained ETCADA staff facili-
tate drug and alcohol prevention programs in Paris and North Lamar ISDs. These programs are designed to reduce the
onset of the use of alcohol, tobacco and other drugs by youth. The school-based component also includes individual coun-
seling sessions for youth in alternative school settings.
Juvenile Probation Programs: Youtll who are involved in the justice system receive a 10-week outcome-based program,
Proiect Toward No Drug Abuse, and individual counseling by trained ETCADA staff.
Describe how your project will benefit the City of Paris and its citizens: ETCADA's programs meet critical commu-
nity needs by linking addicted youth and adults to drug/alcohol treatment and ensuring that community youth are exposed
to prevention strategies that are proven to reduce the onset of the use of drugs or alcohol.
List other sources of funding for this project and the amounts: ETCADA programs are funded through grants from
the Texas Department of State Health Services and require a 5% local match of funds. Additional program support is re-
ceived from Lamar County United Way ($5,000) and Lamar County ($500).
%_.iiy ui rxns
000077 0077 Revised 4/01/09
,
Is a detailed project budget, including columns and descriptions for allocations of city funding and the agency's
matching funds, attached? ❑ Yes ❑X No ETCADA's project encompasses 23 counties and its budget is not tracked
by locality. Funds received from Paris are utilized to provide support for the ATR program which is under-funded by the
State of Texas. An overall program budget is attached.
Have you received funding from the City of Paris in the last five years for this or any other project? 0 Yes ❑ No
If you have received previous city funding, list the name of the project, the amount of the City's award, and the
year awarded: 14500Of'2p09 far 1) Access to Recovery, 2) School Based Prevention Program 3) Juvenile Probation
Pro ram
Detailed description of project (including description of need, scope of work, methodology, who benefits, number
of beneficiaries, ot6er project partners, etc.):
Access to Recovery - Addiction is a disease that impacts every aspect of our community and contributes to some of our
most devastating social problems. It is often a silent partner in domestic violence, child abuse, teen pregnancy, high
school dropout, and crime. It threatens families as well as the very fabric of our society. Drug abuse is a growing
problem that is best addressed by comprehensive programs that combine community resources, professional intervention,
and local financial support. All too often, by the time an alcoholic/addict seeks help he/she has lost employment and the
health insurance benefits that go with employment. The State of Texas provides help for individuals who cannot afford
drug/alcohol treatment. Access to Recovery (ATR) links people to the state-funded treatment. Through ATR, ETCADA
provides a Licensed Chemical Dependency Counselor at the Paris office (3737 Lamar Ave #200) to administer clinical
screening/assessment and referral for those who are seeking help for their addiction. The counselor is available at the
Paris office one time per week. Because treatment is under-funded in Texas, most often clients must wait for placement.
During this interval, the ETCADA counselor offers crisis interventiou and brief motivational counseling to individuals to
keep them engaged in the process of accessing treatment or other recommended services. The ATR counselor will deter-
mine the type and intensity of services needed by the client and when appropriate, shall address the family as a unit, pro-
vide referrals for family members, including prevention services for the children. Outreach is used to provide community
awareness of the Council's services and resources. ETCADA maintains crisis help 24/7 through its toll free Help Line
(800.441.8639). During 2008, our counselor saw 29 Paris residents and responded to seven (8) hotline calls.
School-Based Prevention Program: Using research-based curricula with proven outcomes, trained ETCADA staff facili-
tate drug and alcohol prevention programs in Paris and North Lamar ISDs. These programs are designed to reduce the
onset of the use of alcohol, tobacco and other drugs by youth. ETCADA's prevention program serves youth in grades 3-8.
Students, grade 3-5, go through an 8-week curriculum, Life Skills Training, and one week of Tobacco Prevention training.
Students, grade 6-8, go through a 10-week curriculum, Youth Connection, and two one-week sessions of Tobacco Preven-
tion. Outcomes are measured through pre-post tests. During 2008, 691 Paris and North Lamar students participated in
school-based prevention programs.
Juvenile Probatiorr Program: Youth in Paris Alternative School participate in an intensive intervention program called
Project Toward No Dru Abuse. Utilizing an outcome-based curriculum, students work through the 10-week program
and receive individual counseling. Youth who are involved in the justice system also receive Project Toward No Drue
Abuse and individual counseling. Over the past year, 149 Paris youth on juvenile probation completed this program.
Project partners in Paris/Lamar County include: Chisum and Cecil Everette Elementary Schools, Travis Junior High,
Paris Alternative School, Paris and North Lamar AEPs, and Paris Probation and Truancy.
City of Paris
Revised 4/01/09
d v J~ V r/ V
etcada
EAST TEXAS COUNCIL ON
A,LCOHCLISM AND DRUG nBUSL
ETCADA PROGRAMS AND SERVICES PROVIDED IN PARIS
FY08 Se tember 2007 - Au ust 2008
OSAR (Outreach, Screening, Assessment and Referral)
29
After-Hours Crisis Calls
$
School-Based Prevention Education
691
Youth Individual Sessions
Tobacco Compliance Checks
149
Total Services
46
923
OSAR (Outreach, Screening, Assessment and Referral): Licensed Chemical
Dependency Counselors provide confidential services for individuals seeking
treatment for alcoholism and/or drug addiction.
After Hour Crisis Calls: 24-hour Help line that offers free, confidential and
immediate assistance.
School-Based Prevention Programs: Using research-based curricula with proven
outcomes, trained ETCADA staff facilitate drug and alcohol prevention programs in
elementary schools. These programs are designed to reduce the onset of the use of
alcohol, tobacco and other drugs by youth.
Tobacco Compliance Checks: ETCADA staff provides education for retailers who
sell tobacco products to ensure that youth under age 18 are not allowed to purchase
tobacco and to ensure retailer compliance when receiving "tobacco stings" by law
enforcement.
Community Presentations: Our professional staff accepts invitations from
organizations, churches and schools to educate people about alcoholism and drug
addiction and to make them aware of prevention and intervention services available
throughout East Texas.
° 000079
etcada
EAST TEl(AS COYNCIL ON
ALCOHOUSM AND DRJG nBUSF
ETCADA Fiscal 2009 Budget
DSHS Grant Revenue
$1,538,049
DFC Grant Revenue
125,000
TSM Revenue
242,079
City/County Funds
90,000
United Way/Funds
80,000
Program Fees
Campus Assistance
51,000
Community Education
49,434
Donations
8,015
Total Revenue $2,183,577
Salaries
1,159,024
Benefits
377,710
Travel/Training
115,368
Equipment
49,454
Supplies
109,462
Other Cost*
330,143
Contractual
41,993
Total Expense $ 2,183,154
Total Income/(Loss) $423
*Other Cost include:
Alternative Activities, Training Registration, Telephone, Rent, Agency
owned vehicle cost, Computer related expenses, Insurances including
Professional Liability, Bond Property, General Liability, & Director &
Officers
• 000080
etcada
EAST TEXAS COUNCIL ON
ALCOHOLISM AND DRUG ABUSE
RECEIVED
May 1, 2009
~ 2 tq .9
CITI' MANAGER
PARIS, TEXA.S
Mr. Kevin Carruth, City Manager
City of Paris
PO Box 9037
Paris, TX 75461
Dear Mr. Carruth:
1
0
Enclosed is the completed "Request for Public Funding" application along with the
required forms i.e. audit and budget . I've also included a summary sheet of services
provided to residents of Paris.
As always, I appreciate your support of drug prevention and intervention programs and
services in Paris, Texas. Please let me know if you need additional information.
I look forward to visiting with you and the Council members this summer.
Since ely,
Susan Erwin
Executive Director
708 GLENCREST LANE
LoNGVIEw, TExAS 75601
WWW. ETCADA.COM
❑
United
Way _
903.753.7633
800.441.8639
FAx 903.753.0574
KAREN A. JACKS & ASSOCIATES, P.C.
Certified Public Accountants
P.O. Box 3167
Karen A. Jacks, CPA Longview, Texas 75606 Phone: 903 • 238 • 8822
Peggy J. Lantz, CPA
Sherry Davis, CPA 1501 Colony Circle Fax: 903 • 238 • 9838
Longview, Texas 75604
December 30, 2008
To the Board of Directors
East Texas Council on Alcoholism and Drug Abuse
We have audited the financial statements of East Texas Council on Alcoholism and Drug Abuse for the year
ended August 31, 2008, and have issued our report thereon dated December 30, 2008. Professional
standards require that we provide you with the following information related to our audit.
Our Responsibilitv under U.S Generallv Acceoted Auditinq Standards and OMB CircularA 133
As stated in our engagement letter dated August 12, 2008, our responsibility, as described by professional
standards, is to express an opinion about whether the financial statements are fairly presented, in all
material respects, in conformity with U.S. generally accepted accounting principles. Our audit ofthe financial
statements does not relieve you or management of your responsibilities.
In planning and performing our audit, we considered East Texas Council on Alcoholism and Drug Abuse's
internal control over financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and not to provide assurance on the internal control over
financial reporting. We also considered internal 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 internal control over compliance
in accordance with OMB Circular A-133.
As part of obtaining reasonable assurance about whether East Texas Council on Alcoholism and Drug
Abuse's financial statements are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts, and grants, 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. Also, in accordance with OMB Circular
A-133, we examined, on a test basis, evidence about East Texas Council on Alcoholism and Drug Abuse's
compliance with the types of compliance requirements described in the "U.S. Office of Management and
Budget (OMB) Circular A-1 33 Compliance Supplement" applicable to each of its major federal programs for
the purpose of expressing an opinion on East Texas Council on Alcoholism and Drug Abuse's compliance
with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide
a legal determination on East Texas Council on Alcoholism and Drug Abuse's compliance with those
requirements.
SiQnificant Accounting Findinas
Qualifative Aspects ofAccounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by East Texas Council on Alcoholism and Drug Abuse are described in Note 1 to
Members American Institute of Certified Public Accountanls• Texas Soc~e~~~e~I0~.2c pccountants • AICPA Division tor Firtns Privale Companies Practice Section
M ~l V
the financiai statements. No new accounting policies were adopted and the application of existing policies
was not changed during the year ended August 31, 2008. We noted no transactions entered into by the
Council during the year for which there is a lack of authoritative guidance or consensus. There are no
significant transactions that have been recognized in the financiai statements in a different period than when
the transaction occurred.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on managemenYs knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ significantly
from those expected. There were no key significant estimates affecting the financial statements.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in pertorming and completing our
audit. .
Corrected and Uncorrected Missfatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, otherthan those that are trivial, and communicate them to the appropriate level of management. The
attached schedule summarizes uncorrected misstatements of the financial statements. Management has
determined that their effects are immaterial, both individually and in the aggregate, to the financial
statements taken as a whole. In addition, none of the misstatements detected as a result of audit
procedures and corrected by management were material, either individually or in the aggregate, to the
financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professionaf standards define a disagreement with management as a financial
accounting, reporting, or auditing matter, whetheror not resolved to our satisfaction, that could be significant
to the financial statements or the auditors' report. We are pleased to report that n,o such disagreements
arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 30, 2008.
Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a"second opinion" on certain situations. If a consultation involves application
of an accounting principle to the Council's financial statements or a determination of the type of auditors'
opinion that may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,
there were no such consultations with other accountants.
Other Audit Findings or /ssues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as East Texas Council on Alcoholism and Drug
Abuse's auditors. However, these discussions occurred in the normal course ofour professional relationship
2
. 000083
and our responses were not a condition to our retention.
This information is intended solely for the use of the Board of Directors of East Texas Council on Alcoholism
and Drug Abuse and its management, and is not intended to be and should not be used by anyone other
than these specified parties.
' I ~ Q,. 94z." ~ d'O'-J4c.c.a4 `P G .
Karen A. Jacks & Associates, P.C.
0 000084
East Texas Council on Alcoholism and Drug Abuse
Summary of Audit Differences
Year Ended August 31, 2008
Statement of activities misstatements:
Prepaid insurance
Cumulative effect (before effect of prior year differences)
Effect of unadjusted audit differences - prior year
Accrued interest receivable
Prepaid insurance
Cumulative effect (after effect of prior year differences)
Statement of financial position misstatements (inctuding
reclassifications):
Current assets
Total assets
Net Assets:
Beginning
Ending
4
Current Year
Over(Under)
Statement
$ 10,399
10 399
2
( 10.4201
( 10,418)
$ ( 19)
$ ( 10,399)
( 10,399)
( 10,418)
( 10,399)
0 OOOQ85
KAREN A. JACKS & ASSOCIATES, P.C.
Certified Public Accountants
P.O. Box 3167
Karen A. Jacks, CPA Longview, Texas 75606 Phone: 903 • 238 • 8822
Peggy J. Lantz, CPA
Sherry Davis, CPA 1501 Colony Circle Fax: 903 • 238 • 9838
Longview, Texas 75604
December 30, 2008
To the Board of Directors
East Texas Council on Alcoholism and Drug Abuse
We have audited the financial statements of East Texas Council on Alcoholism and Drug Abuse for the year
ended August 31, 2008, and have issued our report thereon dated December 30, 2008. Professional
standards require that we provide you with the following information related to our audit.
Our Responsibilitv under U S Generallv Accepted Auditina Standards and OMB CircularA 133
As stated in our engagement letter dated August 12, 2008, our responsibility, as described by professional
standards, is to express an opinion about whether the financial statements are fairly presented, in all
material respects, in conformity with U.S. generally accepted accounting principles. Ouraudit of the financial
statements does not relieve you or management of your responsibilities.
In planning and performing our audit, we considered East Texas Council on Alcoholism and Drug Abuse's
internal control over financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and not to provide assurance on the internal control over
financial reporting. We also considered internal 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 internal control over compliance
in accordance with OMB Circular A-133.
As part of obtaining reasonable assurance about whether East Texas Council on Alcoholism and Drug
Abuse's financial statements are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts, and grants, 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. Also, in accordance with OMB Circular
A-133, we examined, on a test basis, evidence about East Texas Council on Alcoholism and Drug Abuse's
compliance with the types of compliance requirements described in the "U.S. Office of Management and
Budget (OMB) CircularA-133 Compliance Supplement" applicable to each of its major federal programs for
the purpose of expressing an opinion on East Texas Council on Alcoholism and Drug Abuse's compliance
with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide
a legal determination on East Texas Council on Alcoholism and Drug Abuse's compliance with those
requirements.
SiQnificant Accountin4 Findin,~c s
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by East Texas Council on Alcoholism and Drug Abuse are described in Note 1 to
Members Amencan Ins(ilute of Certified Public Actountanls • Texas Sociel4of CuilaQ[u &&tanls• AICPA Division for Firms Private Companies Practice Section
the financiai statements. No new accounting policies were adopted and the application of existing policies
was not changed during the year ended August 31, 2008. We noted no transactions entered into by the
Councii during the year for which there is a lack of authoritative guidance or consensus. There are no
significant transactions that have been recognized in the financial statements in a different period than when
the transaction occurred.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on managemenYs knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ significantly
from those expected. There were no key significant estimates affecting the financial statements.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit. ,
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management. The
attached schedule summarizes uncorrected misstatements of the financial statements. Management has
determined that their effects are immaterial, both individually and in the aggregate, to the financial
statements taken as a whole. In addition, none of the misstatements detected as a result of audit
procedures and corrected by management were material, either individually or in the aggregate, to the
financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional s#andards define a disagreement with management as a financial
accounting, reporting, orauditing matter, whetheror not resolved to oursatisfaction, thatcould be significant
to the financial statements or the auditors' report. We are pleased to report that n,o such disagreements
arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 30, 2008.
Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a"second opinion" on certain situations. If a consultation involves application
of an accounting principle to the Council's financial statements or a determination of the type of auditors'
opinion that may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,
there were no such consultations with other accountants.
Ofher Audit Findings or /ssues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as East Texas Council on Alcoholism and Drug
Abuse's auditors. However, these discussions occurred in the normal course ofour professional relationship
2
. UOQQ87
and our responses were not a condition to our retention.
This information is intended solely for the use of the Board of Directors of East Texas Council on Alcoholism
and Drug Abuse and its management, and is not intended to be and should not be used by anyone other
than these specified parties.
`f a,. 944k-~ e -P G.
Karen A. Jacks & Associates, P.C.
• 000088
East Texas Council on Aicoholism and Drug Abuse
Summary of Audit Differences
Year Ended August 31, 2008
Statement of activities misstatements:
Prepaid insurance
Cumulative effect (before effect of prior year differences)
Effect of unadjusted audit differences - prior year
Accrued interest receivable
Prepaid insurance
Cumulative effect (after effect of prior year differences)
Statement of financial position misstatements (including
reclassifications):
Current assets
Total assets
Net Assets:
Beginning
Ending
4
Current Year
Over(Under)
S#atement
$ 10,399
10.399
2
( 10,420)
( 10,418)
$ ( 19)
$ ; ( 10,399)
( 10,399)
( 10.418)
( 10.399)
a ll0i;689
KAAREN A. JACKS & ASSOCIATES, P.C.
Certified Public Accountants
P.O. Box 3167
Karen A. Jacks, CPA Longview, Texas 75606 Phone: 903•238•8822
Peggy J. Lantz, CPA
Sherry Davis, CPA 1501 Colony Circle Fax• 903 • 238 • 9838
Longview, Texas 75604 ~
December 30, 2008
Board of Directors
East Texas Council on Alcoholism and Drug Abuse
Longview, Texas
We have audited the financial statements of East Texas Council on Alcoholism and Drug Abuse as
of and for the year ended August 31, 2008, and have issued our report thereon dated December 30,
2008. As a part of our audit, we made a siudy and evaluation of the Council's system of internal
accounting control to the extent we considered necessary to evaluate the system as required by
generally accepted auditing standards. The purpose of our study and evaluation was to determine
the nature, timing and extent of the auditing procedures necessary for expressing an opinion on the
Council's financial statements. Our study and evaluation was more limited than would be necessary
to express an opinion on the system of internal accounting control taken as a whole.
The Board of D'uectors and management are responsible for establishing and maintaining a system
of intemal accounting control. In fulfilling that responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of control procedures. The
objectives of a system aze to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition, and that transactions are
executed in accordance with management's authorization and recorded properly to permit the
preparation of financial statements in accordance with generally accepted accounting principles.
Because of inherent limitations in any system of internal accounting control, errors or irregularities
may nevertheless occur and not be detected. Also, projection of any evaluation of the system to
future periods is subject to the risk that procedures may become inadequate because of changes in
conditions or that the degree of compliance with procedures may deteriorate.
Our study and evaluation made for the limited purpose described in the first paragraph would not
necessarily disclose all material weaknesses in the system. Accordingly, we do not express an
opinion on the system of internal accounting control of the East Texas Council on Alcoholism and
Drug Abuse taken as a whole. However, our siudy and evaluation disclosed the following conditions
which we believe could be improved to the benefit of the Council's operations.
These conditions were considered in deternuning the nature, timing and extent of the audit tests to
be applied in our audit of the August 31, 2008, financial statements, and this letter does not modify
our report dated December 30, 2008, on those financial statements.
Members American lnslilute of Certified Publfc Accowtants • Texas SocitqiCeryfi~e~p pyq~i~ pccountants• AICPA Division for Firms Private Companies Prectice Section
a VUv:jU
Board of Directors
December 30, 2008
Page 2
PRIOR YEAR DISCLOSURES
Outstandin Checks
During our prior audit, we noted that there were outstanding checks on the Texas Bank & Trust and
Chase Bank accounts that have been outstanding for some time. We recommended that the lists of
outstanding checks be reviewed regularly and that all checks not returned by the banks within a
reasonable period of time be investigated.
The Council addressed this condition during the current year under audit and closed the subj ect bank
accounts.
Adjustin Entries
During our prior year audit, we made adjusting journal entries totaling $16,577 that were necessary
to correct the financial statements. The amount included an adjustment for depreciation, as well as
adjustments to grant receivables and accounts payable. We recommended that management develop
a system to analyze and adjust these accounts prior to the start of the audit.
Similar conditions were observed during the current year audit. We have discussed this situation
with management and recommend they implement the procedures they have developed.
CURRENT YEAR DISCLOSURES
Grant Reporting
The Council prepares and submits f nancial status reports to grantor agencies monthly. The amounts
reported should be supported by the Council's underlying accounting records. During our audit, we
summarized monthly amounts reported to the grantor agencies and compared the total amounts to
the year-end accounting records. We noted differences on the five grants tested; however there was
no indication of claims for reimbursement in excess of eligible expenses.
We have discussed this matter with management and have been advised that reconciliation
procedures were developed and put into practice during September, 2008, to address this coiidition.
This report is intended solely for the use of management and should not be used for any other
purpose. We appreciate the cooperation and courtesy extended to us by the Council's personnel
during our engagement. We will be pleased to discuss the comments and recommendations in this
letter with you at any time.
L~Jxj,jt, 4
do.k
Karen A. Jacks & Associates, P.C.
Ia 000091
KAAREN A. JACKS & ASSOCIATES, P.C.
Certified Public Accountants
P.O. Box 3167
Karen A. Jacks, CPA Longview, Texas 75606 Phone: 903 • 238 • 8822
Peggy J. Lantz, CPA
Sherry Davis, CPA 1501 Colony Circle Fax: 903 • 238 • 9838
Longview, Texas 75604
December 30, 2008
To the Board of Directors
East Texas Council on Alcoholism and Drug Abuse
We have audited the financial statements of East Texas Councii on Alcoholism and Drug Abuse for the year
ended August 31, 2008, and have issued our report thereon dated December 30, 2008. Professional
standards require that we provide you with the foilowing information related to our audit.
Our Responsibilitv under U S Generallv Accepted Auditin4 Standards and OMB CircularA 133
As stated in our engagement letter dated August 12, 2008, our responsibility, as described by professional
standards, is to express an opinion about whether the financial statements are fairly presented, in all
material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial
statements does not relieve you or management of your responsibilities.
In planning and performing our audit, we considered East Texas Council on Alcoholism and Drug Abuse's
internal control over financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and not to provide assurance on the internal control over
financial reporting. We also considered internal control over compliance with requirements fhat 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 compiiance and to test and report on internal control over compliance
in accordance with OMB Circular A-133.
As part of obtaining reasonable assurance about whether East Texas Council on Alcoholism and Drug
Abuse's financial statements are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts, and grants, 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. Also, in accordance with OMB Circular
A-133, we examined, on a test basis, evidence about East Texas Council on Alcoholism and Drug Abuse's
compliance with the types of compliance requirements described in the "U.S. Office of Management and
Budget (OMB) CircularA-133 Compliance SupplemenY" applicable to each of its major federal programs for
the purpose of expressing an opinion on East Texas Council on Alcoholism and Drug Abuse's compliance
with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide
a legal determination on East Texas Council on Alcoholism and Drug Abuse's compliance with those
requirements.
Siqnificant Accountin4 Findinys
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by East Texas Council on Alcoholism and Drug Abuse are described in Note 1 to
Members Amencan lnsliWte of Cenified Public Accountants • Texas Society of Certified Pub(li~c A(c U ~co(~nt(r~jnls • AICPA Division (or Firtns Privale Companies Praclice Section
Do I: .J
the financial statements. No new accounting policies were adopted and the application of existing policies
was not changed during the year ended August 31, 2008. We noted no transactions entered into by the
Council during the year for which there is a lack of authoritative guidance or consensus. There are no
significant transactions that have been recognized in the financial statements in a different period than when
the transaction occurred.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on managemenYs knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibiliry that future events affecting them may differ significantly
from those expected. There were no key significant estimates affecting the financial statements.
Difficu/ties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management. The
attached schedule summarizes uncorrected misstatements of the financial statements. Management has
determined that their effects are immaterial, both individually and in the aggregate, to the financial
statements taken as a whole. In addition, none of the misstatements detected as a result of audit
procedures and corrected by management were material, either individually or in the aggregate, to the
financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial
accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant
to the financial statements or the auditors' report. We are pleased to report that no such disagreements
arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 30, 2008.
Consu/tations with Other /ndependent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a"second opinion" on certain situations. If a consultation involves application
of an accounting principle to the Council's financial statements or a determination of the type of auditors'
opinion that may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,
there were no such consultations with other accountants.
Other Audit Findings or /ssues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as East Texas Council on Alcoholism and Drug
Abuse's auditors. However, these discussions occurred in the normal course ofour professional relationship
2
,a 000093
and our responses were not a condition to our retention.
This information is intended solely for the use of the Board of Directors of East Texas Councii on Alcoholism
and Drug Abuse and its management, and is not intended to be and should not be used by anyone other
than these specified parties.
Karen A. Jacks & Associates, P.C.
3
QUOG94
East Texas Councii on Alcoholism and Drug Abuse
Summary of Audit Differences
Year Ended August 31, 2008
Statement of activities misstatements:
Prepaid insurance
Cumulative effect (before effect of prior year differences)
Effect of unadjusted audit differences - prior year
Accrued interest receivable
Prepaid insurance
Cumulative effect (after effect of prior year differences)
Statement of financial position misstatements (including
reclassifications):
Current assets
Total assets
Net Assets:
Beginning
Ending
4
Current Year
Over (Under)
Statement
$ 10,399
10,399
2
( 10,420)
( 10,418)
$ ( 19)
$ ( 10,399)
( 10,399)
( 10,418)
( 10,399)
1 LU66S5
EAST TEXAS COUNCIL ON ALCOHOLISM
AND DRUG ABUSE
FINANCIAL AND COMPLIANCE REPORT
August 31, 2008
. UOGLyQ
EAST TEXAS COUNCIL ON ALCOHOLISM AND DRUG ABUSE
TABLE OF CONTENTS
FINANCIAL_SECTION
independent Auditors' Report
Statement of Financial Position
Statement of Activities
Statement of Functional Expenses
Statement of Cash Flows
Notes to Financial Statements '
COMPLIANCE SECTION
Schedule of Expenditures of Federal and State Awards
Notes to Schedule of Expenditures of Federal and State Awards
Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial
Statements Pertormed in Accordance with Government Auditinq
Standards
Report on Compliance with Requirements Applicable to each
Major Program and on Internal Control over Compliance in
Accordance with OMB Circular A-133
Schedule of Findings and Questioned Costs
Summary Schedule of Prior Audit Findings
Corrective Action Plan
PAG E
2
3
4
5
6
7
11
12
13
15
17
18
19
00009 i
FINANCIAL SECTION
• UUOU98
KAREN A. JACKS SL. ASSOCIATES, P.C.
Certified Public Accountants
P.O. Box 3167
Karen A. Jacks, CPA Longview, Texas 75606 Phone: 903 • 238 • 8822
Peggy J. Lantz, CPA
Sherry Davis, CPA 1501 Colony Circle Fax: 903 • 238 • 9838
Lon,gview, Texas 75604
INDEPENDENT AUDITORS' REPORT
Board of Directors
East Texas Council on Alcoholism and Drug Abuse
Longview, Texas
We have audited the accompanying statement of financial position of the East Texas Council on Alcoholism and Drug
Abuse (a nonprofit organization) as of August 31, 2008, and the related statements of activities, functional expenses,
and cash flows for the year then ended. These financial statements are the responsibility of the Council's management.
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditinq 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 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 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
the East Texas Council on Alcoholism and Drug Abuse as of August 31, 2008, 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 Government Auditina Standards, we have also issued our report dated December 30, 2008, on our
consideration of the East Texas Councii on Alcoholism and Drug Abuse's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or
on compliance. That report is an integral part of an audit performed in accordance with Government Auditina Standards
and important for assessing the results of our audit.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements of East Texas Council
on Alcoholism and Drug Abuse taken as a whole. The accompanying schedule of expenditures of federal and state
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 Oraanizations and the State of Texas Single Audit Circular
for state funds, 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 statements and, in our opinion, is fairly stated, in all
material respects, in relation to the basic financial statements taken as a whole.
1'f ~ Q, . 4 &Y aciQ.fa~s.~
Karen A. Jacks & Associates, P.C.
December 30, 2008
2
Members American Institute of Certified Public Accountants• Texas Sociery of Certified Public Accoun[ants• AICPA Division Ior Firms Private Companies Practice Section
1 GOOG99
EAST TEXAS COUNCIL ON ALCOHOLISM AND DRUG ABUSE
STATEMENT OF FINANCIAL POSITION
August 31, 2008
Assets
Current Assets
Cash
Grants and contracts receivable
United Way receivable
Total Current Assets
Furniture & Equipment, net of accumulated depreciation
Total Assets
Liabilities and Net Assets
Current Liabilities
Accounts payable
Accrued expenses
Total Current Liabilities
Net Assets
Unrestricted:
Operating
Furniture & equipment
Designated for contingencies
Total Unrestricted Net Assets
Total Liabilities and Net Assets
(The accompanying notes are an integral part of these financial statements.)
$ 320,336
281,481
32,565
634,382
28,641
$ 663,023
$ 128,268
81,138
209,406
234,976
28,641
190,000
453,617
$ 663,023
I - 000100
EAST TEXAS COUNCIL ON ALCOHOLISM & DRUG ABUSE
STATEMENT OF ACTIVITIES
For the Year Ended August 31, 2008
Unrestricted Net Assets
Support
Fees for services
Fees for services - Subcontract
Cities and counties
United Way
Contributions
Fundraising
Interest income
Miscellaneous income
Total Unrestricted Support
Net assets released from restrictions
Restrictions satisfied by payments
Total Unrestricted Support and Reclassifications
Expenses
Program services
Substance Abuse Prevention and Intervention
Supporting services
Management and general
Fundraising
Total Expenses
Increase in Unrestricted Net Assets
Temporarily Restricted Net Assets
Government grants and matching contributions
Net assets released from restrictions
Restrictions satisfied by payments
Decrease in Temporarily Restricted Net Assets
Increase in Net Assets from Operations
Other Expenses
Loss on asset disposition
Increase in Net Assets
Net Assets at Beginning of Year
Net Assets at End of Year
(The accompanying notes are an integral part of these financial statements.)
4
$ 118,782
47,316
105,250
80,964
44,738
4,781
8,997
4,709
415,537
1,753,795
2,169, 332
1,695, 842
363,775
8,696
2,068,313
101,019
1,752,998
(1,753,795)
(797)
100,222
(341)
99,881
353,736
$ 453,617
I uUulU1
EAST TEXAS COUNCIL ON ALCOHOLISM AND DRUG ABUSE
STATEMENT OF FUNCTIONAL EXPENSES
For the Year Ended August 31, 2008
Salaries
Payroll taxes and benefits
Total salaries & related
expenses
Travel and training
Supplies
Education/training materials
M e eti n g s/eve nts/p ro m oti o n
Postage
Telephone
Repairs and maintenance
Lease and rentals
Insurance
Professionals and consultants
Dues and memberships
Scholarships
Total expenses before
depreciation
Depreciation of equipment
Total Expenses
Program
Services Supportinq Services
Substance
Abuse
Prevention and
Intervention Management &
Services General Fundraising Total
$ 817,187 $ 212,363 $ 5,168 $ 1,034,718
190,395 53,406 948 244,749
1,007,582
265,769
6,116
1,279,467
132,007
15,650
1,611
149,268
257,751
5,301
-
263,052
2,196
3,807
-
6,003
33,276
4,370
-
37,646
1,036
1,860
419
3,315
22,975
8,980
-
31,955
43,754
17,909
-
61,663
148,090
30,512
550
179,152
18,385
4,312
-
22,697
25,414
-
-
25,414
80
4,629
-
4,709
-
500
-
500
1,692,546
363,599
8,696
2,064,841
3,296
176
-
3,472
$ 1,695,842 $
363,775 $
8,696 $
2,068,313
(The accompanying notes are an integral part of these financial statements.)
5
a UO11102
EAST TEXAS COUNCIL ON ALCOHOLISM AND DRUG ABUSE
STATEMENT OF CASH FLOWS
For the Year Ended August 31, 2008
Cash Flows From Operating Activities
Increase in net assets
Adjustments to reconcile change in net assets to net cash provided by operating
activities:
Depreciation
(Increase) decrease in operating assets:
Grants and contracts receivable
Other receivables
Increase (decrease) in operating liabilities:
Accounts payabie
Accrued expenses
Net Cash Provided by Operating Activities
Cash Flows From Investing Activities
Purchase of furniture and equipment
Net Cash Provided (Used) by Investing Activities
Net Increase in Cash and Cash Equivalents
Beginning Cash
Ending Cash
(The accompanying notes are an integral part of these financial statements.)
$ 100,222
3,472
(23,731)
13,572
25,000
1,930
120,465
(17,652)
(17,652)
102,813
217,523
$ 320,336
- 000103
EAST TEXAS COUNCIL ON ALCOHOLISM AND DRUG ABUSE
NOTES TO FINANCIAL STATEMENTS
August 31, 2008
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
( A ) Organization
East Texas Council on Alcoholism and Drug Abuse ("Council") was chartered in 1966 and serves a twenty three
county area. The Council provides substance abuse prevention, intervention and criminal justice programs
designed to increase public understanding of the nature, controi and remedy of alcoholism, drug abuse and
other addictions.
( B ) Income Tax Status
The Council qualifies as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code and,
therefore, has no provision for federal income tax.
( C ) Basis of Accountina
The financial statements of the East Texas Council on Alcoholism and Drug Abuse have been prepared on the
accrual basis of accounting and, accordingly, reflect all significant receivables, payables, and other liabilities.
( D ) Basis of Presentation
Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in
its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements for Not-for-Profit
Organizations. Under SFAS No. 117, the Organization is required to report information regarding its financial
position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted
net assets, and permanently restricted net assets.
( E ) Functional Expenses
Expenses are charged to each program based on direct expenditures incurred. Certain allocations of general
and administrative expenses have been estimated by management.
( F ) Grants
The Organization records income from grants in the period during which contract provisions are satisfied and
the grant proceeds are considered to be earned.
( G) Cash and Cash Equivalents
For purposes of the Statement of Cash Flows, the Council considers all unrestricted, highly liquid investments
with an initial maturity of three months or less to be cash equivalents.
7
~ 000104
EAST TEXAS COUNCIL ON ALCOHOLISM AND DRUG ABUSE
NOTES TO FINANCIAL STATEMENTS
August 31, 2008
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
( H ) Estimates
Management uses estimates and assumptions in preparing financial statements. Those estimates and
assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities
and the reported revenues and expenses. Actual results could differ from those estimates.
NOTE 2- PROPERTY AND EQUIPMENT
All acquisitions of property and equipment and all expenditures that materially prolong the useful lives of assets
that exceed a capitalization threshold of $5,000 are capitalized. Furniture and equipment are recorded on the
books at cost. The accumulated depreciation is computed on the straight-line basis, using estimated useful
lives as follow:
Furniture and Equipment
5-10 years
The book value of furniture and equipment on August 31, 2008 is as follows:
Furniture and equipment $ 117,016
Less accumulated depreciation (88,375)
$ 28,641
NOTE 3- DONATED SERVICES, MATERIALS 8 FACILITIES
A substantial number of unpaid volunteers have made significant contributions of their time to the Council. The
value of this contributed time is not reflected in these statements since it is not susceptible to objective
measurement or valuation.
The use of several facilities for offices has been donated to the Council. The estimated rental value of these
facilities is $ 4,530 per month. $ 54,370 has been recorded in the statement of activities as a temporarily
restricted contribution and as rent and building maintenance expenses.
The Council received donations of supplies. The estimated value of the donated supplies is $ 31,928 for the
year ended August 31, 2008 and has been recorded as temporarily restricted contributions and supplies
expense.
NOTE 4 - CONTINGENT LIABILITIES
The Council participates in various federal and state grant programs. These programs are subject to program
compliance audits by the grantors or their representatives. Any liability for reimbursement which may arise as a
result of these audits is not believed to be material.
8
1 000105
EAST TEXAS COUNCIL ON ALCOHOLISM AND DRUG ABUSE
NOTES TO FINANCIAL STATEMENTS
August 31, 2008
NOTE 5 - LEASES
The Council leases office facilities under a noncancelable operating lease. Rent expense under this lease was
$ 126,420 for the year ended August 31, 2008.
The future minimum obligation under the lease is as follows:
Year Ending
August 31 Amount
2009 $120,445
2010 38,440
$158,885
NOTE 6 - FINANCIAL INSTRUMENTS
At August 31, 2008, deposits at the Council's depository bank exceeded the $100,000 limit of FDIC insurance by
$ 227,594.
On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor
through December 31, 2009.
NOTE 7- EMPLOYEE BENEFIT PLAN
The Council provides finro retirement programs for its employees. The first, a tax-sheltered annuity plan, is
optionally available to each permanent employee and allows the employees to contribute a portion of their salary
to the plan. This plan represents no additional cost to the Council. The second, a simplified employee pension
plan (SEP), requires the Council to contribute five percent of each eligible employee's annual salary. During the
year ended August 31, 2008, the Council contributed $42,380 to the SEP. SEP contributions vest immediately
to the employees and, therefore, the Council does not participate in any market value changes in plan assets.
NOTE 8- NET ASSETS DESIGNATED FOR CONTINGENCIES
The Council's Board of Directors has designated net assets in the amount of $ 190,000 for contingencies related
to future funding of its various programs. The Board of Directors has established this designation based upon
an estimate of three months' fixed operating expenses, including its obligation under its facility lease agreement.
. 000106
COMPLIANCE SECTION
10
~ 000107
East Texas Council on Alcoholism and Drug Abuse
Schedule of Expenditures of Federal and State Awards
For the Year Ended August 31, 2008
Federal
CFDA Pass-through Entity
Grantor/Pass-through Grantor/Pro ram or Cluster Title Number ldentifying Number Expenditures
Federal Awards
U.S. Department of Health and Human Services:
Pass-through programs from:
Substance Abuse and Mental Health Services
Administration
Drug-Free Communities Support Program 93.276 2003-ND-FX-0093 $ 96,391
Texas Department of State Health Services
Access to Recovery (ACL)
93.275
2008-025387-001
10
204
Access to Recovery II (AT2)
93.275
2008-025540-001
,
3
170
Outreach, Screening, Assessment, and Referral (OSR)
93.959
2008-023574-004
,
228
629
Prevention Resource Center (PRC)
93.959
2008-023574-005
,
151
980
Youth Prevention - Indicated (YPI)
93.959
2008-023574-001
,
241
278
Youth Prevention - Selective (YPS)
93.959
2008-023574-003
,
137
227
Youth Prevention - Universal (YPU)
93.959
2008-023574-002
,
322720
Tobacco Prevention and Control
93.283
2007-022907-001
65
373
Tobacco Prevention and Control
93.283
2008-028450-001
,
718
18
Total Texas Department of State Health Services
,
1,179 299
Total U.S. Department of Health and Human Services
1,275,690
Total expenditures of federal awards
1,275,690
State Awards
Texas Department of State Health Services:
Outreach, Screening, Assessment, and Referral (OSR)
2008-023574-004
158
142
Prevention Resource Center (PRC)
2008-023574-005
,
33
743
Tobacco Smokeless Rural (Rider 81)
2008-028206-001
,
51
227
Youth Prevention - Indicated (YPI)
2008-023574-001
,
50
561
Youth Prevention - Selective (YPS)
2008-023574-003
,
31
673
Youth Prevention - Universal (YPU)
2008-023574-002
,
65
894
Total Texas Department of State Health Services
,
391,240
Total expenditures of state awards
391,240
Total expenditures of federal and state awards
$ 1,666,930
11
• UU0108
East Texas Council on Alcoholism and Drug Abuse
Notes to Schedule of Expenditures of Federal and State Awards
For the Year Ended August 31, 2008
NOTE A- BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal and state awards includes the federal and state grant
activity of East Texas Council on Alcoholism and Drug Abuse and is presented on the accrual basis of
accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular
A-133, AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT ORGANIZATIONS and the State
of Texas Single Audit Circular for state funds. Therefore, some amounts presented in this schedule may differ
from amounts presented in, or used in the preparation of, the general purpose financial statements.
12
0 000109
KAREN A. JACKS & ASSOCIATES, P.C.
Certified Public Accountants
P.O. Box 3167
Karen A. Jacks, CPA Longview, Texas 75606 Phone: 903 • 238 • 8822
Peggy J. Lantz, CPA
Sherry Davis, CPA 1501 Colony Circle Fax: 903 • 238 • 9838
Longview, Texas 75604
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
Board of Directors
East Texas Council on Alcoholism and Drug Abuse
Longview, Texas
We have audited the financial statements of East Texas Council on Aicoholism and Drug Abuse (a nonprofit
organization) as of and for the year ended August 31, 2008, and have issued our report thereon dated December
30, 2008. We conducted our audit in accordance with auditing standards generaily accepted in the United States
of America and the standards applicable to financial audits contained in Government Audifinp Standards, issued
by the Comptroller General of the United States.
Internal Control Over Financial Reportina
In planning and performing our audit, we considered East Texas Council on Alcoholism and Drug Abuse's internal
control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of East
Texas Council on Alcoholism and Drug Abuse's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the East Texas Council on Alcoholism and Drug Abuse's internal
control over financial reporting.
A control deficiency 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 misstatements on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the
organization's ability to initiate, authorize, record, process, or report financial data reliably in accordance with
generally accepted accounting principles, such that there is more than a remote likelihood that a misstatement of
the organization's financial statements that is more than inconsequential will not be prevented or detected by the
organization's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than
a remote likelihood that a material misstatement of the financial statements wiil not be prevented or detected by
the organization's internal control.
Our consideration of internal controi over financial reporting was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal controi over
financial reporting that we considered to be material weaknesses, as defined above.
13
Members American InstiWle of Certified Public Accounlants• Texas Socie of Certified Publi ACCOUntants• AICPA Division for Firms Private Companies Praciice Seclion
a ~ U 011
Compliance and_Other Matters
As part of obtaining reasonable assurance about whether East Texas Council on Aicoholism and Drug Abuse'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 resuits of our tests disclosed no instances of noncompliance that are required to be reported under
Government Auditing Standards.
We noted certain matters that we reported to management of East Texas Council on Alcoholism and Drug Abuse
in a separate letter dated December 30, 2008.
This report is intended solely for the information and use of the Board of Directors of East Texas Council on
Alcoholism and Drug Abuse, management, and federal awarding agencies and pass-through entities and is not
intended to be and should not be used by anyone other than these specified parties.
Karen A. Jacks & Associates, P.C.
December 30, 2008
14
M'" 000111
KAREN A. JACKS & ASSOCIATES, P.C.
Certified Public Accountants
P.O. Box 3167
Karen A. Jacks, CPA Longview, Texas 75606 Phone: 903 • 238 • 8822
Peggy J. Lantz, CPA
Sherry Davis, CPA 1501 Colony Circle Fax: 903 • 238 • 9838
Longview, Texas 75604
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLiCABLE
TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
IN ACCORDANCE WITH OMB CIRCULAR A-133
Board of Directors
East Texas Council on Alcoholism and Drug Abuse
Longview, Texas
Compliance
We have audited the compliance of East Texas Council on Alcoholism and Drug Abuse (a nonprofit organization)
with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular
A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended August
31, 2008. East Texas Council on Alcoholism and Drug Abuse's major federal programs are identified in the
summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance
with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is
the responsibility of East Texas Council on Alcoholism and Drug Abuse's management. Our responsibility is to
express an opinion on East Texas Council on Alcoholism and Drug Abuse'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 Government Auditina Standards, issued
by the Comptroller General of the United States; 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 East Texas Council on Alcoholism and Drug Abuse'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 East Texas Council on Alcoholism and Drug Abuse's compliance with those requirements.
In our opinion, East Texas Council on Alcoholism and Drug Abuse 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 August
31, 2008.
15
Members American Institule of Certified Public Accountants• Texas Society ofUU U
~igt~p~ITZuntants• A1CPA Division (or Firms Privale Companies Practice Section
'a
Internal Control over Compliance
The management of East Texas Council on Alcoholism and Drug Abuse 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 East Texas Council on
Alcoholism and Drug Abuse's internal control over compliance with the 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, but not for the purpose of expressing an opinion on the effectiveness of
internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of East Texas
Council on Alcoholism and Drug Abuse's internal control over compliance.
A control deficiency in an entity's internal control over compliance 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 noncompliance with a rype of compliance requirement of a federal program on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's
ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a
type of compliance requirement of a federal program that is more than inconsequential will not be prevented or
detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a
remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not
be prevented or detected by the entity's internal control.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of
this section and would not necessarily identify ail deficiencies in internal control that might be significant deficiencies
or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to
be material weaknesses, as defined above.
This report is intended solely for the information and use of the Board of Directors of East Texas Council on
Alcoholism and Drug Abuse, management, and state and federal awarding agencies and pass-through entities and
is not intended to be and should not be used by anyone other than these specified parties.
, ~
Karen A. Jacks & Associates, P.C.
December 30, 2008
16
a-U0Q113
EAST TEXAS COUNCIL ON ALCOHOLISM AND DRUG ABUSE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended August 31, 2008
A. Summary of Auditors' Results
1. Financial Statements
Type of auditors' report issued:
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiencies identified that are not
considered to be material weaknesses?
Noncompliance material to financial statements
noted?
2. Federal Awards
internal control over major programs:
Material weakness(es) identified?
Significant deficiencies identified that are
not considered to be material weaknesses?
Type of auditors' report issued on compliance for
major programs:
Any audit findings disclosed that are required
to be reported in accordance with section 510(a)
of Circular A-133?
Identification of major programs:
CFDA Number
93.959 Block Grants for Prevention and Treatment
of Substance Abuse
Dollar threshold used to distinguish between
Unqualified
Yes X No
Yes X Nonereported
Yes X No
Yes X No
Yes X None reported
Unpualified
Yes X No
type A and type B programs: $300,000
Auditee qualified as low-risk auditee? X Yes
B. Financial Statement Findinps
None
C. Federal Award Findinas and Questioned Costs
None
No
17
M-U0~114
EAST TEXAS COUNCIL ON ALCOHOLISM AND DRUG ABUSE
SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended August 31, 2008
Finding/Recommendation
Current Status
Management's Explanation
If Not Implemented
None
18
•-Uo0115
EAST TEXAS COUNCIL ON ALCOHOLISM AND DRUG ABUSE
CORRECTIVE ACTION PLAN
For the Year Ended August 31, 2008
None Required.
19
00011 F
REQUEST FOR PUBLIC FUNDING
Non profit agencies roquesting funding from the City of Paris for projects that benefit the citizens of Paris must complcte
the foilowing information to be eligible for consideration (you may use additional pages, if necessary). In addition, please
submit with this farm a copy of your agency's most recent financial statement or audit and a detailed budget for the
project. Agencies must also make a brief presentation on their project at a city council meeting.
Agency Name: La mar /Ll~[seq DAte:J ttKe- QJ_ Z°0
Q H~ s./x 7J`Slb
Agency MAiling Address: °l fa,-~5 7an,? bi17 G' f- / 3 2a10
Agency Phone Number: M5 - taCL7 Agency Fax Number:
CoataM Persox:,.,& ler► ct h-i i/4 Contxct's Title: Vl ee- Pre-s t c{e q
ContaM'a Mailieg Address: -5~'l 7 3 C 2:~ I I o O 5~ r►-~ ne- %x ?Xc/ d° ~
Contact's Phone Number: 90 3-~d~~r ~ 3 6.F Coptact'a Fax Number: ~
Coatact's Email
Name oF
LocatIoa/Servtce Area ot
i S V
Summsry of Project: ---.6,e, 12,0-og l2. Q N t(i "i I'1- A r- A/t 1 ciMe-it
C~ ~etyh, .Sc en~4el L4- 7'!Pi//.'~J 'T~ILi h«rol"54 VP U=v ( ~~CL11~1~r
Cdicr ,-a- i o nal 4 Gt-rs gh0 JidPd -/..v C.al Schoo l RJ4 s5 e5;
~ a A V~ I'Ar u '3,2CI k,r Vd'L~.~ -To 2`r"~ GlO~'l~Nn~t~t~rr~. 4- T^Ot,t.r 91~7i.~,
FZ0 nd~c;1 ~qt1~ lR,bow iS i/'Ultth~c.C-'..iYt~~inc~~Dns~rb~~;Oh
ribe how your rnject will benefit the Clty of Parls and tts
t ~
r ~t f
i^ ~U~ D W1 ~lOn V 1 s, l-re f'' ~ ~ _-L•Z' ~
&,14
lF
City Of PiI'if ~cVwcu wawvo
Is a detxiled project budget, iaciudiag columas and descriptioas tor a1locAtlons of city fuading xnd the Ageucy's
WAtCIIIDg f11UdS, Attached? ❑ Yes ❑ No
Is the ageacy's most receat financial statement or Audit attached? ❑ Yes ❑ No
Have you received fuading from the Ctty of Paris ia tke last tive years for thls or aay other project? 0 Yes ❑ No
If you bave received previous clty fuxding, list t6e name of the project, the amodnt ot't6e Clty's award, and the
year awsrded: trC:&ej v'd 00- i t't 204.-20001 ~or m Ole r4 ~/nl~ ce-
a 000117
f:tle- 1-Gc.mhdec( J D48.!r9/~~jUh4erhour$Jti ZonY,
-s"
Gist otber sources of fnnding for this project and the:mounts: ` c fundgh
DetaBed deseripdon of project (iacludiag description of aeed, scope of work, methodology, who benefits, number
of beneflciaries, other project partners, etc.): z) Cz C
, 14
~ Q h 4 e /7
1411
e-
,~d ~ 1 ~ . ►-1 tr Q 41 O ni3 7'L~ ~-r 4{7
aa~ " C,t2 (a~ L- ti, 14J I' e•~ ,
Ctty of Paris Revised 6nprog
Lamar County Historical Society Financial Statement 2008
Donations:
Dr. Hayden
$5825.00
City of Paris
5000.00
First Federal
5000.00
VCC
3500.00
Lamar County
1000.00
Other donations
1280.00
Memorials
290.00
Donation Box
1587.67
Museum Shop
518.50
Member Dues
1275.00
Total income $25,276.17
Operating Expenses:
Utilities
4621.61
Supplies
136.92
Equipment Maintenance
157.68
Insurance
774.00
Advertising
500.00
Miscellaneous
196.11
Membership Drive
805.00
Total expenses: $7191.32
Display Expenses:
Frames
1155.00
Bills Room
1753.84
Milita.ry Room
37.05
Sports
139.05
W. Side Walls
2749.21
Total: $5834.15
Equipment-copier 223.07
Total Expenses $13,248.54
Cash on Hand $12,027.63
0
. OOU119
Lamar County Historical Society Projected Income and Expense for 2009
INCOME
Donations:
City of Paris
$5000.00
VCC
3500.00
Lamar County
1000.00
Other
1150.00
Box
1200.00
Gift Shop
400.00
Dues
1000.00
Total income: $13,500.00
Operating Expenses:
Utilities
4700.00
Supplies
200.00
Equipment Maintenance
1000.00
Insurance
800.00
Advertising
300.00
Miscellaneous
250.00
Membership Expenses
200.00
Total Operating: $7,450.00
Property Improvement Planned:
ADA Exit
1000.00
Entrance Canopy
1500.00
Gazebo Fence
1000.00
Bills Rooms
1000.00
Total Improvement: $45 00.00
Total Payout: $11,950.00
« 000120
LAMAR COUNTY HUMAN RESOURCES, INC.
Meals On Wheels, Elderly Transportation, Food Baskets,
Telephone Reassurance, Senior Centers
PO Box 714
Paris, Texas 75461
903-784-2580
903-784-2639 (Fax)
Ichrced@suddenlinkmail.com (E-mail)
June 30, 20096
City Of Paris
Attn: Gene Anderson
P.O. Box 9037
Paris, Texas 75461
Reference: Financial Request
Dear Mr. Anderson,
Lamar County Human Resources Council, Inc. is a 501(c)3 Non-Profit agency that works to meet the
needs of individuals in Paris and Lamar County. LCHRC aides individuals and families in the Paris area
with Food Baskets, Utility Assistance, Fans, Blankets, Heaters, Smoke Detectors, Senior Transportation
and Meals on Wheels. LCHRC through its various programs has served approximately 971 individuals to
date.
The Meals on Wheels Program works to meet the nutritional needs of seniors and disabled individuals, to
promote a higher quality of life and independence. The Meals on Wheels program is currently serving
661 individuals with a nutritional noon time meal Monday thru Friday. Approximatly 86% of these
individuals' live in the City of Paris. It costs approximately $1,400.00 a year to feed an individual on this
program. Through the efforts of the Meals on Wheels Program, individuals are able to reside
independently in their own home. Many individuals without this program would be forced to live in an
assisted living program and or a nursing home.
LCHRC has greatly appreciated the prior years support from the City of Paris. LCHRC looks forward to
a continued collaborative working relationship with the City of Paris. LCHRC is requesting $12,000.00
in financial support to assist us in continuing to meet the needs of individuals in our area.
Please find enclosed a copy of our Audit for the year ending September 30, 2008. If there is any
additional information needed for your records, please contact me at (903) 784-2580.
Thank You,
United Way of
a0a_4L-
Tanteta Hilliard Lamar County
COMMITTED TO HELPING THOSE IN NEED
000121
REQUEST FOR PUBLIC FUNDING
Non-profit agencies requesting funding from the City of Paris for projects that benefit the citizens of Paris must complete
the following information to be eligible for consideration (you may use additional pages, if necessary). In addition, please
submit with this form a copy of your agency's most recent financial statement or audit and a detailed budget for the
project. Agencies must also make a brief presentation on their project at a city council meeting.
Agency Name• e Date: 4 c
Agency Mailing Address: • 0 • P-nyl I d
Agency Phone Number:,(qD3)M"25V) Agency Fax Number: (q03) T-6q'2
Contact Person:
Contact's Title:
Contact's Mailing Address:scaY1 c K5 k ov e,
Contact's Phone Number:0--~aXY, 'e, Contact's Fax Number: 'Sa'rt
Contact's Email Address: l c h rce ~ su~ er1% 4VYw t 1•con
Name of Project•MealS Otn Ur 1-e_el 5
Location/Service
Summary of Proj
Describe how your project will benefit the Cit of Paris a its citizens:
List other sources of funding for this project and t e amounts:
S6e t~c~cLq Qc
Is a detailed project budget, inc ding columns and descriptions for allocations of city funding and the agency's
matching funds, attached? Yes ❑ No
Is the agency's most recent financial statement or audit attached? El-Y'es ❑ No
Have you received funding from the City of Paris in the last five years for this or any other project?iYes ❑ No
If you have received previous city funding, list the name of the project, the amount of the City's award, and the
year awarded:
«
City of Paris Revised 6/10/08
• 000122
Detailed description of project (including description of need, scope of work, methodology, who benefits, number
of beneficiaries, other project partners, etc.):
City of Paris Revised 6/10/08
« UQU123
Lamar County Human Resources
City Funding Request
Summary of Project: Meals on wheels delivers hot nutritious noon time meals to
seniors over 60 years of age and disabled individuals in Paris and Lamar County. Lamar
County Human Resources also has 4 senior centers that serve a noon time meal and
social activities. Two of those centers are located in Paris.
Describe how your project will benefit the City of Paris and its citizens: Meals on
Wheels enables seniors and disabled individuals to maintain an independent lifestyle. It
also aids in overall nutritional health. Being able to be healthy independent individuals
allows them to stay in their homes longer and be part of their community.
List other sources of funding for this project and the amounts:
Department of Aged and Disabled Services $ 420,900.61
Area Agency on Aging $ 188,080.42
United Way $ 20,125.06
County of Lamar $ 11,000.00
Please note that these numbers are from year end 9/30/08
Previous City Funding:
2004 $ 8,000.00
2005 $ 0.00
2006 $ 5,000.00
2007 $ 8,000.00
2008 $12,000.00
Detailed Description of Project:
Meals on Wheels is serving an average of 580 meals a day. There are 510 homebound
individuals being served in their homes. 86% of those individuals live in the City of
Paris. There is an additional 151 individuals being served through one of the four senior
centers. 73% of those individuals live in the City of Paris. According to the 2000
Census, 20.4% of the population of Paris/Lamar County is over the age of 60.
The Meals on Wheels program also has two case managers that works with participants
in the program to refer and assist them in other areas as needed. We strive to train staff
and volunteers in CPR. With this training and having contact with individuals 5 days a
week, we have the ability to assist with emergency needs. We collaborate with law
enforcement and paramedics when there is a concern regarding the welfare of a
participant.
M 000124
Unapproved Lamar County Human Resources Council, Inc. 2009/2010 Budget
CODE
CATEGORY
Actual FY 07108
8udgeted FY 08108
Proposed FY 09110
INCOME:
4010
PUBLIC SUPPORT:
4012
FOUNDATIONS/CORP
$
500
$
45,000
$
30,000
4013
DONATIONS
$
22,199
$
20,000
$
24,000
4014
UNITED WAY
$
18,536
$
19,517
$
20,000
4017
PURCHASED MEALS
$
500
$
-
TOTAL:
$
41,235
$
85,017
$
74,000
4020
SPECIAL FUNDRAISING EVENTS
4021
MISC FUNDRAISING (Mardi Gras)
$
21,940
$
28,000
$
28,000
4022
MISC FUNDRAISING
$
-
$
-
TOTAL:
$
21,940
$
28,000
$
28,000
4050
PROGRAM INCOME- DONATIONS
4051
TRANSPORTATION
$
1,174
$
1,000
$
1,000
4052
MEALS
$
8,015
$
8,000
$
7,500
TOTAL PROGRAM INCOME
$
9,189
$
9,000
$
8,500
4060
PRIVATE CONTRACTS
4064
FINLAY (Town Parc)
$
3,999
$
-
4065
CHAMY INVESTMENTS (Paris Ret.Vill)
$
5,328
$
5,565
$
5,903
TOTAL:
$
9,327
$
5,565
$
5,903
4070
GRANTS
4071
LAMAR COUNTY
$
10,000
$
11,000
$
11,000
4073
III C 1 LAMAR
$
63,268
$
58,507
$
65,000
4074
III C 2 LAMAR
$
110,657
$
116,513
$
120,000
4075
Title XIX LAMAR - CBA
$
-
$
196,526
$
260,000
4075
Title XX LAMAR - CCAD
$
381,217
$
208,395
$
250,000
4079
III B TRANSPORTATION LAMAR
$
23,175
$
20,774
$
25,000
4083
FEMA
$
8,000
$
-
$
-
4086
CITY OF PARIS
$
8,000
$
12,000
$
12,000
TOTAL:
$
604,317
$
623,715
$
743,000
4090
InvestmenUlnterest Income
$
2,256
$
1,000
$
2,500
5000
HOUSING INCOME
5001
PARK GARDENS
$
22,190
$
19,020
$
19,020
5010
RENTALS
$
-
$
4,800
$
4,800
TOTAL:
$
22,190
$
23,820
$
23,820
=
~ `W'-GiiAN0 TOTAL INCOME:
71,0~
Page 1 of 4,
« GU012~
Unapproved Lamar County Human Resources Council, Inc. 2009/2010 Budget
CODE
CATEGORY
Actual FY 07108
Budgeted FY 08108
Proposed FY 09110
6000
PAYROLL COSTS
6012
TAXES PAYROLL 7.65%
$
21,023
$
22,548
$
26,935
6013
l1NEMPLOYMENT CcD 1.6%
$
3,666
$
4,716
$
5,634
6014
WORKERS COMPENSATION
$
4,396
Clericai .59%
$
-
$
-
$
686
Kitchen 3.3%
$
-
$
6,041
$
7,690
TOTAL PBT:
$
29,085
$
33,305
$
40,945
EXPENSES:
6100
SALARIES:
EXEMPT
6101
Executive Director
$
31,724
$
36,724
$
41,725
Total Exem t Salaries:
$
31,724
$
36,724
$
41,725
NONEXEMPT
ADMINISTRATION OFFICE
6102
Fiscal Director
$
21,694
$
20,592
6104
MOW Program Director
$
23,379
$
25,717
PR/Volunteer Coordinator
$
-
$
9,750
$
12,870
Case Manager
$
20,821
Case Mana er
$
-
$
18,928
$
19,448
6108
KITCHEN - MOW
Kitchen Mana er
$
-
$
19,885
$
21,873
Head Cook
$
-
$
15,579
$
17,137
Kitchen Aide & Meal Delive
$
-
$
13,624
$
15,080
Kitchen Aide & Meal Delive
$
-
$
13,624
$
15,080
Kitchen Aide & Meai Delive
$
-
$
13,624
$
15,080
Kitchen Aide & Meal Delive
$
-
$
13,624
$
15,080
Meal Delive
$
-
$
-
$
7,540
Meal Delive
$
-
$
6,812
$
7,540
Meal Delive
$
-
$
6,812
$
7,540
Meal Delive
$
-
$
6,812
$
7,540
6110
SITE MANAGER
(Blossom)
$
-
$
6,812
$
7,540
(Pshi oda Aide)
$
-
$
7,519
$
8,271
(Paris Retirement
$
-
$
6,895
$
7,540
Pshi oda Pro ram Coordinator)
$
-
$
10,179
$
11,197
(Roxton
$
-
$
2,725
$
3,016
6111
OTHER
BILLING CLERK
$
-
$
17,805
$
19,585
6113
Bud eted Christmas Gifts
$
-
$
2,400
$
2,800
TRANSPORTATION
6105
Driver
$
-
$
19,537
$
21,484
Substitue Driver
$
-
$
-
$
-
TOTAL NONEXEMPT:
$
265,828
$
258,019
$
310,372
TOTAL EXEMPT AND NONEXEMPT:
$
297,552
$
294,743
$
352,097
Page 2 of 4
« 000126
Unapproved Lamar County Human Resources Council, Inc. 2009/2010 Budget
CQDE
CATEGORY
Actuat FY 07108
Budgeted FY 08109
Proposed FY 08110
6200
PROFESSIONAL FEES
6204
AUDIT & 990
$
12,534
$
15,000
$
16,500
6206
OTHER PROFESSIONAL SERVICES
$
629
$
800
$
800
TOTAL PROFESSIONAL FEES:
$
13,163
$
15,800
$
17,300
6300
SUPPLIES
6301
RAW FOOD
$
203,606
$
202,146
$
230,000
6302
MEAL RELATED SUPPLIES
$
26,125
$
30,000
$
40,000
6303
KITCHEN SUPPLIES
$
2,398
$
2,800
$
4,000
6304
OFFICE SUPPLIES
$
2,741
$
3,500
$
4,000
6305
CLEANING SUPPLIES
$
2,035
$
1,700
$
1,800
6306
HEALTH /MEDS/FIRST AIDE
$
274
$
300
$
500
6307
MAINTENANCE
$
-
$
750
$
1,000
6308
TOKENS OF APPRECIATION
$
-
$
1,000
$
1,000
6325
SMALL EQUIPMENT
$
240
$
800
$
800
TOTAL SUPPLIES:
$
237,418
$
242,996
$
283,100
6400
COMMUNICATIONS
6401
BASE SERVICE
$
3,834
$
3,750
$
3,750
6403
LONG DISTANCE
$
174
$
300
$
300
6404
INTERNET SERVICE
$
980
$
1,000
$
1,000
6406
RADIO COMMUNICATIONS
$
1,783
$
1,500
$
2,000
TOTAL TELEPHONE
$
6,771
$
6,550
$
7,050
6500
POSTAGE
$
966
$
1,500
$
1,500
6600
OCCUPANCY
6603
ELECTRICITY
$
21,600
$
29,000
$
31,500
6604
GAS
$
4,122
$
3,800
$
4,000
6605
WATER
$
1,656
$
1,550
$
1,900
6606
SECURITY
$
490
$
200
$
200
6607
TRASH PICKUP
$
1,696
$
1,550
$
2,800
6608
PESTCONTROL
$
823
$
1,000
$
1,200
6609
PROPERTY MAINTENANCE
$
2,918
$
5,000
$
5,000
TOTAL OCCUPANCY:
$
33,306
$
42,100
$
46,600
6700
R E N TAL/R E PAI R/MAI NT E NAN C E
EQUIPMENT
6702
VEHICLE MAINTENANCE
$
11,435
$
11,000
$
11,000
6902
FUEL
$
22,345
$
20,234
$
21,500
6904
TAGS/LICENSE
$
2,843
$
700
$
700
6703
EQUIPMENT MAINTENANCE
$
4,734
$
5,000
$
5,000
6710
Buildin Re airs/Maintenance
$
17,340
$
15,000
New/Re lace E ui ment
$
33,700
$
20,000
TOTAL EQUIP RENTAL:
$
58,698
$
70,634
$
73,200
6800
PRINTING & DUPLICATIONS
6801
OUTSIDE PRINTING
$
91
$
500
$
500
6802
COPYING
$
2,055
$
1,200
$
1,200
6805
FILMNIDEOS
$
50
$
50
6807
PURCHASE PUBLICATIONS
$
200
$
200
6808
COMPUTER SOFTWARE
$
199
$
500
$
500
TOTAL P& P:
$
2,345
$
2,450
$
2,450
Page 3 of 4
■ -00012!
Unapproved Lamar County Human Resources Council, Inc. 2009/2010 Budget
CODE
CATEGORY
Actual FY 07108
Budgeted FY 08109
Proposed FY 08I90
6900
TRAVEL
6901
AUTO ALLOWANCE/Mila e
$
2,210
$
3,000
$
4,000
6905
HOTEL/MEALS/1NCIDENTALS
$
-
$
3,500
$
4,000
TRAINING
$
-
$
500
$
500
TOTAL TRAVEL:
$
2,210
$
7,000
$
8,500
7000
CONFITRAIN
7001
REGISTRATION FEES
$
495
$
1,500
$
2,000
7002
OTHER
$
135
$
-
$
150
TOTAL CONF/CONV:
$
630
$
1,500
$
2,150
7100
SPECIFIC ASSISTANCE
TOINDIVIDUALS
7101
ENERGY ASSISTANCE
$
7,701
$
7300
MEMBERSHIP
7302
ORGANIZATIONAL DUES
$
-
$
250
$
250
TOTAL:
$
-
a
250
$
250
7401
AUTO Note Pa ments
$
15,440
$
14,402
$
15,000
7700
INSURANCE
TOTAL:
$
18,702
$
19,500
$
20,000
7900
MISC. EXPENSES
7905
ADVERTISING
$
1,384
$
1,000
$
1,000
7906
SPECIAL PROJECTS/EVENTS
$
400
$
1,500
$
1,500
7907
BANK CHARGES
$
15
$
50
$
50
7912
TOWN PARC PROJECTS
$
191
$
7915
FUNDRAISING Mardi Gras)
$
11,780
$
12,000
$
13,000
7916
FUNDRAISING (Car Show)
$
-
$
_
TOTAL:
$
13,770
$
14,550
$
15,550
,
7
. .
GRAND TOTAL INCOME:
M ~'~lNC~D1YfE'
$ 710,454
$ 776,117
~z`.. . 7
$ 885,723
Page 4 of 4
w,000128
Lamar County Human Resources Council, Inc.
Report of Examination
For the Year Ended September 30, 2008
M 000129
Table of Contents
For the Year Ended September 30, 2008
FINANCIAL SECTION
Unqualified Opinion on Financial Statements and Supplementary
Schedule of Expenditures of Federal Awards
1_2
FINANCIAL STATEMENTS:
Statement of Financial Position
3
Statement of Activities
4
Statement of Functional Expenses
5
Statement of Cash Flows
6
Notes to the Financial Statements
7_ 12
SUPPLEMENTAL SCHEDULE:
Combining Statement of Financial Position
13
FEDERAL FINANCIAL ASSISTANCE SECTION
Schedule of Expenditures of Federal Awards
14
Notes to the Schedule of Expenditures of Federal Awards
15
Independent Auditors' 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
16-17
Independent Auditors' Report on Compliance with Requirements Applicable
to Each Major Program and Internal Control over Compliance In Accordance
with OMB Circular A-133
18-19
Schedule of Findings and Questioned Costs
20-21
Suuunary Schedule of Prior Findings
22_23
Plan of Corrective Action
24
.-000130
FINANCIAL SECTION
- 000131
Malnory, McNeal & Company, PC
Certified Public Accountants
Mark W. Malnory, CPA Johnna W. McNeal, CPA
Members of
Beverly Smith, CPA American Institute of Certified Public Accountants
Texas Society of Certitied Public Accountants
Unqualified Opinion on Financial Statements and
Supplementary Schedule of Expenditures of Federal Awards
Indeqendent Auditors' Report
Board of Directors
Lamar County Human Resources Council, Inc.
Members of the Board of Directors:
We have audited the accompanying statement of financial position of Lamar County Human
Resources Council, Inc. ("LCHRC") (a nonprofit organization) as of September 30, 2008, and the
related statements of activities, functional expenses, and cash flows for the year then ended. These
financial statements are the responsibility of LCHRC's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and the provisions of
Office of Management and Budget Circular A-133, Audits ofStates, Local Governments and Non-
Profit Organizations. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and 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-T,CHRC as of September 30, 2008, 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 Government Audited Standards, we have also issued our report dated November
25, 2008, on our consideration of LCHRC's internal control over financial reporting and our tests of
5016 McKinney Avenue Dallas, Texas 75206 Telephone: 214-559-0784 Facsimile: 214-559-0785
1711 Clarksville Street Paris, Texas 75460 Telephone: 903-784-6700 Facsimile: 903-784-6934
. 600132
its compliance with certain provisions of laws, regulations, contracts and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion
on the internal control over financial reporting or on compliance. That report is an integral part of
an audit perfortned in accordance with Government Auditing Standards and should be considered
in assessing the results of our audit.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements of
LCHRC taken as a whole. The accompanying combining statement of financial position is
presented for the purpose of additional analysis and is not a required part of the basic financial
statements. The accompanying schedule of expenditures of federal awards is presented for
proposes 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 statements and, in our opinion, is fairly stated, in all
material respects, in relation to the basic financial statements taken as a whole.
a d"~j~'~
Paris, Texas v
Certified Public Accountants
November 25, 2008
2
M UQG13~
FINANCIAL STATEMENTS
« 000134
Lamar County Human Resources Council, Inc.
Statement of Financial Position
September 30, 2008
Current Assets
Cash $
68,239
Accounts Receivable - net of allowance for uncollectible amounts of $11,424
106,041
Accounts Receivable - Tenants
2,046
Prepaid Expenses
4,961
Restricted Deposits
Tenant Security Deposits
15,198
Replacement Reserve
96,339
Total Current Assets
292,824
Property and Equipment - net of accumulated depreciation $823,131 1,235,988
Total Assets
$ 1,528,812
Current Liabilities
Accounts Payable
$ 56,297
Accrued Liabilities
5,046
Prepaid Rental Assistance Payments
4,694
Tenant Security Deposits
13,548
Current Portion of Notes Payable
19,206
Total Current Liabilities
98,791
Long-Term Liabilities
Compensated Absences 2,659
Notes Payable 86,210
Total Long-Term Liabilities 88,869
Net Assets
Unrestricted Operations 210,461
Temporarily Restricted 1,130,691
Total Net Assets 1,341,152
Total Liabilities and Net Assets $ 1,528,812
3
The accompanying notes are an integral part of this statement
1 000135
Lamar County Human Resources Council, Inc.
Statement of Activities
For the Year Ended September 30, 2008
Unrestricted
Temporarily
Operations
Restricted
Total
SUPPORT AND REVENUE:
Support:
Public $
41,234
-
41,234
Private Contracts
31,517
-
31,517
Grants
604,318
458,275
1,062,593
Total Support
677,069
458,275
1,135,344
Revenue:
In-Kind Revenue
55,277
-
55,277
Program Income
12,818
189,305
202,123
Investment Income
2,256
1,011
3,267
Fundraising - Special Event
21,940
-
21,940
Total Revenue
92,291
190,316
282,607
INCREASES IN NET ASSETS
769,360
648,591
1,417,951
EXPENSES:
Program Services:
Programs
751,320
-
751,320
Housing
-
647,856
647,856
Total Program Services
751,320
647,856
1,399,176
Support Services:
Management and General
18,057
-
18,057
Fundraising
11,780
-
11,780
Total Support Services
29,837
-
29,837
DECREASES IN NET ASSETS
781,157
647,856
1,429,013
Change in Net Assets
(11,797)
735
(11,062)
Net Assets at Beginning of Year
222,258
1,129,956
1,352,214
NET ASSETS AT END OF YEAR $
210,461
1,130,691
1,341,152
4
The accompanying notes are an integral part of this statement
M C1U013G
Lamar County Human Resources Council, Inc.
Statement of Functional Expenses
For the Year Ended September 30, 2008
Program Support
Management
Programs
Housing
and General
Fundraising
EXPENSES
Communications
$ 6,673
-
97
_
Conf/Conventions/Training
818
(188)
Insurance
18,298
36,362
403
-
Interest on Debt
1,865
6,569
-
-
Membership
_
_
_
_
Miscellaneous
8,933
46,319
516
11,780
Occupancy
53,835
239,895
1,225
-
Payroll Burden
27,629
13,564
1,456
-
Payroll
296,379
148,441
1,173
-
Printing & Publications
1,370
-
30
-
Professional Fees
12,908
14,443
255
-
Equip. Rent/Repairs & Maint.
27,014
71,387
5,790
-
Supplies
248,398
5,478
203
-
Travel
27,249
-
12
-
Postage
936
-
30
-
Employee Training
-
_
2
_
Bad Debt expense
-
-
6,665
-
TOTAL EXPENSES
BEFORE DEPRECIATION
732,305
582,458
17,669
11,780
Depreciation
19,015
65,398
388
-
TOTAL EXPENSES
AFTER DEPRECIATION
$ 751,320
647,856
18,057
11,780
5
The accompanying notes are an integral part of this statement
- 000137
Lamar County Human Resources Council, Inc.
Statement of Cash Flows
For the Year Ended September 30, 2008
Cash Flows From Operating Activities:
Increase (Decrease) in net assets
Adjustment to reconcile change in net assets to net cash
provided by operating activities:
Depreciation and Amortization
Loss on Sale of Assets
(Increase) decrease in operating assets
Accounts Receivable
Cash Restricted for Tenants Security Deposit Held
Escrow Deposit
Prepaid Expenses
Increase (decrease) in operating liabilities:
Accounts Payable
Accrued Liabilities
Compensated Absences
Accrued Property Insurance
Prepaid Revenues
HAP Adjustment
Tenant Security Deposit
Net cash provided (used) by operating activities
Cash Flows From Investing Activities:
Net withdrawals from Reserve for Replacement and
Residual Receipts and Interest Retained in Accounts
Proceeds from Sale of Fixed Assets
Purchase of Fixed Asset
Net cash provided (used) by investing activities
Cash Flows From Financing Activities:
Proceeds from Notes Payable issued
Payment on Notes Payable
Net cash provided (used) by financing activities
Net increase (decrease) in cash
Cash at the Beginning of the Period
Cash at the End of the Period
Cash paid for interest
6
The accompanying notes are an integral part ofthis statement.
($11,062)
84,801
2,808
(27,269)
235
0
0
32,930
(11,536)
0
0
(4,401)
0
(907)
65,599
(36,371)
0
(43,802)
(80,173)
12,667
(19,799)
(7,132)
(21,706)
89,945
$68,239
$8,434
a UUU13,0
Lamar County Human Resources Council, Inc.
Notes to Financial Statements
For the Year Ended September 30, 2008
A. REPORTING ENTITY
Lamar County Human Resources Council, Inc. ("LCHRC") was incorporated as a
non-profit corporation under the laws of the State of Texas on February 18, 1975. The
Organization is comprised of a volunteer membership whose interest is the improvement
of community life. The council elects from its membership a Board of Directors who
has the responsibility for managing the organization. The organization is funded
through private and institutional donations, federal grants, and other grants.
The Council has a tax-exempt status under Internal Revenue Code Section 501(c)(3) for
the year ended September 30, 2008.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
B. BASIS OF PRESENTATION
Financial statement presentation follows the recommendations of the American Institute
of Certified Public Accountants in its Industry Audit Guide, Audit and Accountin
Guide Not for-Pro it Organizations
C. FINANCIAL STATEMENT PRESENTATION:
LCHRC has adopted Statement of Financial Accounting Standards (SFAS) No. 117,
"Financial Statements of Not-for-Profit Organizations." Under SFAS No. 117, LCHRC
is required to report information regarding its financial position and activities according
to three classes of net assets (unrestricted net assets, temporarily restricted net assets,
and permanently restricted net assets) based upon the existence or absence of donor-
imposed restrictions.
*Unrestricted net assets - Net assets that are not subject to donor-imposed stipulations.
*Temporarily restricted net assets - Net assets subject to donor-imposed stipulations that
may or will be met, either by actions of the Organization and/or the passage of time.
When a restriction expires, temporarily restricted net assets are reclassified to
unrestricted net assets and reported in the statement of activities as net assets released
from restrictions. LCHRC accounts for the Park Gardens North Apartments (PGNA)
complex in this category.
*Permanently restricted net assets - Net assets subject to donor-restricted stipulations
that they be maintained permanently by the Organization. Generally, the donors of these
assets permit the Organization to use all or part of the income earned on any related
investments for general or specific purposes.
7
C300139
Lamar County Human Resources Council, Inc.
Notes to Financial Statements
For the Year Ended September 30, 2008
D. ESTIMATES
Management uses estimates and assumptions in preparing financial statements. Those
estimates and assumptions affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported revenues and expenses.
Actual results could differ from those estimates.
E. PUBLIC SUPPORT AND REVENUE - DONATED SERVICES
Certain entities contribute substantial amounts of materials and services toward the
fulfillment of projects initiated by LCHRC. To the extent that the contributions of
materials and services are made under the control of LCHRC, are objectively
measurable and represent program or support expenditures which would otherwise be
incurred by LCHRC personnel, they are reflected in both public support and program
expenditures in the accompanying financial statements.
F. DONATED MATERIALS
Donated materials are reflected as contributions at their estimated value at date of receipt
and are recorded as expenses for program services.
G. GRANTS AND CONTRACTS
Support received under grants and contracts with the United States Government, the
State of Texas, and other agencies is recorded as temporarily restricted support if they
are received with donor stipulations that limit the use of the donated assets. Support that
is restricted by the donor is reported as an increase in unrestricted net assets if the
restriction expires in the reporting period in which the support is recognized. All other
donor-restricted support is reported as an increase in temporarily or permanently
restricted net assets depending on the nature of the restriction. When donor restrictions
expires, that is, when a stipulated time restriction ends or purpose restriction is
accomplished, temporarily restricted net assets are reclassified to unrestricted net assets
and reported in the statement of activities as net assets released from restrictions. The
amount recognized is either exact cost or unit cost, depending on the terms of the
contract.
H. PROPERTY, PLANT AND EQUIPMENT
Donations of property, plant and equipment are recorded as support at their estimated
fair value. Such donations are reported as unrestricted support unless the donor has
restricted the donated asset to a specific purpose.
8
m 000140
Lamar County Human Resources Council, Inc.
Notes to Financial Statements
For the Year Ended September 30, 2008
1. CASH AND CASH EQUNALENTS:
Cash equivalents consist of short-term, highly liquid investments, which are readily
convertible into cash within ninety (90) days of purchase.
Unrestricted
LCHRC Operations:
Operating
Petty Cash
Total Unrestricted
Temporarily Restricted
Park Gardens North:
$ 64,818 Operating
225 Petty Cash
Total Temporarily
65 043 Restricted
Grand Total Cash (Unrestricted and Temporarily Restricted)
Restricted
$ 2,396
800
$ 3,196
$6~
HUD-restricted cash accounts, totaling $111,037 at June 30, 2008, aze held in separate
bank accounts and are not available for operating purposes. These accounts, Tenant
Security Deposits and Replacement Reserve, are not considered cash equivalents for
cash flow purposes.
J. EQUIPMENT
Equipment is stated at cost. Depreciation is computed on a straight-line basis over the
estimated useful lives of the respective assets. The estimated useful life of the
equipment and automobiles is 5-15 years and 7 years, respectively. The estimated
useful life of the apartment building is 30 years.
Changes in general fixed assets are as follows:
Balance
Balance
06-30-07
Additions
Retirements 06-30-08
Assets of PGNA:
Buildings and
Improvements
$1,535,366
$20,321
$1,555,687
Land
205,673
205,673
Furniture and
Appliances
98,149
550
98,699
Office Furniture
16,019
2,956
18
975
Total Assets of PGNA
1,855,207
23,827
,
1,879,034
9
0 000141
Lamar County Human Resources Council, Inc.
Notes to Financial Statements
For the Year Ended September 30, 2008
J. EQUIPMENT (Continued)
Balance
Balance
09-30-07
Additions
Retirements
09-30-08
Assets of LCHRC:
Equipment
60,974
2,500
63,474
Vehicles
107.870
17,476
(8,735
116,611
Total Assets of LCHRC
168,844
19,976
(8,735)
180,085
Less: Accum. Depr.
Of Organization
(744,256
(84•g01)
5.926
823 131
Total
1 2 7 5
40 8
2 0
1 2 5 8
K. FUNCTIONAL EXPENSES
LCHRC allocates its expenses on a functional basis among its various programs and
support services. Expenses that can be identified with a specific program or support
service are allocated directly according to their natural expenditure classification. Other
expenses that are common to several functions are allocated based on management's
estimates.
LCHRC's principal programs comprise:
* Programs - The organization's programs provide food and meal related services,
including congregate and homebound meals to eligible program participants. Contracts
and grants included in nutrition programs are Care Coordination, Title III C1, Title III
C2, and Title XX Home Delivered Meals. Transportation services are provided to
eligible participants under a Title III B Transportation. Other programs consist of
Federal Emergency Financial Assistance.
*Housing - LCHRC owns Park Gardens North apartment complex that receives
supplemental rental income for low-income families from the Department of Housing
and Urban Development under Section 8.
Support programs include the following:
*Management and General - Management and general expenses are items that are
funded primarily by money raised by LCHRC through donations, fees, and fund raising
activities. Funds expended are for general operating expenditures not allocable to a
specific program.
10
M ~(1~142
Lamar County Human Resources Council, Inc.
Notes to Financial Statements
For the Year Ended September 30, 2008
L. NOTES PAYABLE
$77,061 LCHRC issued a note payable to a bank with a original balance of
$192,000. The original note was modified, renewed, and extended effective
April 2, 2007 at 8.75% interest due in monthly installments of $1,066
(principal and interest) with a maturity date of April 2, 2017. * This note
reflects a June 30, 2008 balance versus September 30, 2008. This is
secured by a deed of trust to the building located at 19`h NW Street in Paris,
TX.
$5,038
7.50% note payable, due in monthly installments of $277,
including
interest, through April 14, 2010, secured by the purchased vehicle.
$4,183
5.95% note payable, due in monthly installments of $203,
including
interest, through April 14, 2010, secured by the purchased vehicle.
$7,011
4.90% note payable, due in monthly installments of $481,
including
interest, through April 14, 2010, secured by the purchased vehicle.
$12,122
6.30% note payable, due in monthly installments of $247,
including
interest, through June 10, 2013, secured by the purchased vehicle.
Current maturities on notes payable are as follows for the years ending
September 30 (and June 30):
Principal
2009
$19,206
2010
14,885
2011
10,074
2012
10,925
2013
11,053
Thereafter
39,273
Total
105 416
M. TEMPORARILY RESTRICTED NET ASSETS
The temporarily restricted net assets of the organization consist only of the net assets
associated with the Park Gardens North Apartments (PGNA) complex. The complex
was purchased in October 1995 and a fifteen-year contract was immediately entered into
with the United States Department of Housing and Urban Development. PGNA has a
June 30, fiscal year end per the HUD Contract Agreement. The Statement of Financial
Position reflects balances as of June 30, 2008. The Statement of Activity consists of
PGNA revenues and expenditures from July l, 2007 through June 30, 2008.
11
M UU0143
Lamar County Human Resources Council, Inc.
Notes to Financial Statements
For the Year Ended September 30, 2008
N. CONTINGENT LIABILITIES
LCHRC participates in numerous state and federal grant programs which are governed
by various rules and regulations of the grantor agencies. Costs charged to the respective
grant programs are subject to audit and adjustment by the grantor agencies; therefore, to
the extent that LCHRC has not complied with the rules and regulations governing the
grants, refunds of any money received may be required and the collectibility of any
related receivable may be impaired. LCHRC is obligated to refund payments received
from Texas Department of Aging and Disability Services for failed meal delivery in
excess of contract provisions.
0. PARTNERSHIP AGREEMENT
In a prior fiscal year, LCHRC entered into a partnership agreement with Finlay Interests
GP 21, LLC, a Florida limited liability company, and Multi-Housing Tax Credit
Partners XXXVII, a California limited partnership, to construct a residential rental
housing project. LCHRC is the administrative general partner in the agreement. In the
current year Finlay Interest GP 21, LLC was replaced as the general partner by
Affordable Multi-Family, LLC, a Colorado limited liability company. LCHRC serves
solely as the administrative general partner and has no other responsibilities or
obligations to the partnership.
P. SUBSEQUENT EVENTS
Subsequent to September 30, 2008 LCHRC received notice of grant awards for the
following programs:
Federal Grants
Title III-C, Title XX (Home Delivered Meals), and Title III-B from the Art-Tex Council
of Govemments.
Other Grants
Lamar County and City of Paris
12
M 000144
Lamar County Human Resources Council, Inc.
Combining Statement of Financial Position
September 30, 2008
Current Assets
Cash and Investments
Accounts Receivable -
net of allowance of $11,424
Accounts Receivable - Tenants
Prepaid Expenses
Restricted Deposits
Tenant Security Deposits
Replacement Reserve
Total Current Assets
Property and Equipment
Accumulated Depreciation
Net Property and Equipment
Total Assets
Current Liabilities
Accounts Payable
Accrued Liabilities
Prepaid Rental Assistance Payments
Tenant Security Deposits
Current Portion of Notes Payable
Total Current Liabilities
Long-Term Liabilities
Compensated Absences
Notes Payable
Total Long-Term Liabilities
Net Assets
Unrestricted Operations
Temporarily Restricted
Total Net Assets
Park
Gardens
$ 3,196
LCHRC
Operations and
Fixed Assets
Total
65,043 68,239
106,041 106,041
2,046 - 2,046
- 4,961 4,961
14,698
500
15,198
96,339
-
96,339
116,279
176,545
292,824
1,879,033
180,086
2,059,119
(738,249)
(84,882)
(823,131)
1,140,784
95,204
1,235,988
1,257,063
271,749
1,528,812
27,094
29,203
56,297
3,975
1,071
5,046
4,694
-
4,694
13,548
-
13,548
6,300
12,906
19,206
55,611
43,180
98,791
- 2,659
2,659
70,761 15,449
86,210
70,761 18,108
88,869
- 210,461 210,461
1,130,691 - 1,130,691
1,130,691 210,461 1,341,152
Total Liabilities and Net Assets 13 $ 1,257,063 271,749 1,528,812
- 00C1145
FEDERAL FINANCIAL ASSISTANCE SECTION
.1 uoQi~G
Lamar County Human Resources Council, Inc.
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2008
CFDA
Program Title Number Expenditures
MAJOR PROGRAMS:
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Lower Income Rental Assistance 14.856 $458,275
DEPARTMENT OF HEALTH AND HUMAN SERVICES:
Passed Through Texas Department ofAging and Disability Services
Title XX Home Delivered Meals Service 13.667 381,217
NON-MAJOR PROGRAMS:
DEPARTMENT OF HEALTH AND HUMAN SERVICES:
Passed Through AT-COG
Title III-C1 Services under the Older Americans Act 93.045 62,837
Title III-C2 Services under the Older Americans Act 93.045 110,657
Caregiver Services unknown 431
Title III-B Services under the Older Americans Act 93.044 23,175
FEDERAL EMERGENCY FINANCIAL ASSISTANCE
Emergency Food & Shelter 83.503 8,000
DEPARTMENT OF LABOR
Senior Community Service Employment Program 17.235 8,613
(Experience Works)
TOTAL EXPENDITURES OF FEDERAL AWARDS $1,053,205
14
N 000147
Lamar County Human Resources Council, Inc.
Notes to the Schedule of Expenditures of Federal Awards
September 30, 2008
A. BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards includes the federal grant
activity of Lamar County Human Resources Council, Inc. and is presented on the accrual
basis of accounting. The information in this schedule is presented in accordance with the
requirements of OMB Circular A-133, "Audits of States, Local Governments, and Non-
Profit Organization." Therefore, some amounts presented in this schedule may differ
from amounts presented in, or used in the preparation of, the basic financial statements.
B. MATCHING REQUIREMENTS
In accordance with the terms of the Title III C and Title III B grants, the organization
expended the 10% required matching contributions for each program.
C. REVENUE VERSUS EXPENSES
Expenditures are not specifically attributable to the following federal revenue for the
Section 8- Lower Income Rental Assistance; therefore, expenditures are shown on the
Schedule of Expenditures of Federal Awards in amounts equal to revenues for this
program. Actual expenses for this program amounted to $647,856.
D. IN-K1ND (NON-CASH) - EXPERIENCE WORKS
The senior community service employment program (experience works) are recorded as
in-kind revenue and in-kind payroll expense at its estimated fair value in the year
received.
15
- 000148
Malnory, McNeal & Company, PC
Certified Public Accountants
Mark W. Malnory, CPA Johnna W. McNeal, CPA
Beverly Smith, CPA
Members ot
American Institute of Certified Public Accountants
Texas Society of Certified Public Accountants
Independent Auditors' 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
Board of Directors
Lamar County Human Resources Council, Inc.
Members of the Board of Directors:
We have audited the financial statements of Lamar County Human Resources Council, Inc.
("LCHRC") (a nonprofit organization) as of and for the year ended September 30, 2008, and have
issued our report thereon dated November 25, 2008. 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.
Internal Control over Financial Reporting
In planning and performing our audit, we considered LCHRC's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion
on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of
the LCHRC's internal control over financial reporting. Accordingly, we do not express an opinion
on the effectiveness of the LCHRC's internal control over financial reporting.
A control deficiency 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
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the organization's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles, such that there is more than a remote likelihood that a misstatement of the organization's
financial statements that is more than inconsequential will not be prevented or detected by the
organization's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies that
result in more than a remote likelihood that material noncompliance with a type of compliance
requirement of a federal program will not be prevented or detected by the entity's internal control.
Our consideration of the internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies in
16
5016 McKinney Avenue Dallas, Texas 75206 Telephone: 214-559-0784 Facsimile: 214-559-0785
1711 Clarksville Street Paris, Texas 75460 Telephone: 903•784-6700 Facsimile: 903-784-6934
" Q00149
the internal control that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal 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 LCHRC'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
We noted certain matters that we reported on LCHRC's in a separate letter dated November 25,
2008.
This report is intended solely for the information and use of the audit committee, Board of
Directors, management and federal awarding agencies and pass-through entities and is not intended
to be and should not be used by anyone other than these specified parties.
IYWnoU..~.,
Paris, Texas Certified Public Accountants
November 25, 2008
17
. 000150
Malnory, McNeal & Company, PC
Certified Public Accountants
Mark W. Malnory, CPA Johnna W. McNeal, CPA Members of
American Institute of Certified Public Accountants
Beverly Smith, CPA Independent Auditors' Report on Texas Society of Certified Public Accountants
Compliance with Requirements Applicable
To Each Major Program and Internal Control over Compliance
In Accordance With OMB Circular A-133
Board of Directors
Lamar County Human Resources Council, Inc.
Compliance
We have audited the compliance of Lamar County Human Resources Council, Inc. ("LCHRC") (a
nonprofit organization) with the types of compliance requirements described in the U.S. Office Of
Management And Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of
its major federal programs for the year ended September 30, 2008. LCHRC's major federal programs
are identified in the summary of auditor's results section of the accompanying schedule of findings and
questioned costs. Compliance with the requirements of laws, regulations, contracts and grants
applicable to each of its major federal programs is the responsibility of LCHRC's management. Our
responsibility is to express an opinion on LCHRC'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 Government Auditing
Standards, issued by the Comptroller General of the United States; 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
LCHRC'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 LCHRC's compliance with those requirements.
As described in items 2008-1 and 2008-2 in the accompanying schedule of findings and questioned
costs, LCHRC did not comply with requirements regarding management and special test and provisions
and equipment and real property that are applicable to its Title XX - Home Delivered Meals program.
Compliance with such requirements is necessary, in our opinion, for LCHRC to comply with
requirements applicable to that program.
In our opinion, except for the noncompliance described in the preceding paragraph, LCHRC 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 September 30, 2008.
18
5016 McKinney Avenue Dallas, Texas 75206 Telephone: 214•559-0784 Facsimile: 214-559-0785
1711 Clarksville Street Paris, Texas 7546Q1 OTg~e~hq.pe: 903-784-6700 Facsimile: 903-784-6934
M V ~1 bl
Internal Control over Compliance
The management of LCHRC is responsible for establishing and maintaining effective internal control
over compliance with requirements of laws, regulations, contracts and grants applicable to federal
programs. In planning and performing our audit, we considered LCHRC's internal 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, but
not for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of LCHIZC's internal control over
compliance.
Our consideration of internal control over compliance was for the limited purpose described in the
preceding paragraph and would not necessarily identify all deficiencies in the entity's internal control
that might be significant deficiencies or material weaknesses as defined below. However, as discussed
below, we identified certain deficiencies in internal control over compliance that we consider to be
significant deficiencies.
A control deficiency in an entity's internal control over compliance 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 noncompliance with a type of compliance requirement of a federal
program on a timely basis. A significant deficiency is a control deficiency, or combination of control
deficiencies, that adversely affects the entity's ability to administer a federal program such that there is
more than a remote likelihood that noncompliance with a type of compliance requirement of a federal
program that is more than inconsequential will not be prevented or detected by the entity's internal
control. We consider the deficiencies in internal control over compliance described in the
accompanying schedule of findings and questioned costs as items 2008-1 and 2008-2 to be significant
deficiencies.
A material weakness is a significant deficiency, or combination of significant deficiencies that result in
more than a remote likelihood that material noncompliance with a type of compliance requirement of a
federal program will not be prevented or detected by the entity's internal control.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might
be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal
control over compliance that we considered to be material weaknesses.
LCHRC's response to the findings identified in our audit is described in the accompanying schedule of
findings and questioned costs. We did not audit LCHRC's response and, accordingly, we express no
opinion on it.
This report is intended solely for the information and use of management, the Board of Trustees, others
within the organization, and federal awarding agencies and pass-through entities and is not intended to
be and should not be used by anyone other than these specified parties.
Paris, Texas Certified Public Accountants
November 25, 2008
~ 00019 52
Lamar County Human Resources Council, Inc.
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2008
PROGRAM
Description
Type of report on
Unqualified
financial statements
Significant Deficiencies
igni icant e iciencies on interna contro s exist. ee current year in mgs - an
2008-2.
Material Weaknesses
No material weaknesses on internal controls exist.
involving Significant
Deficiencies
Noncompliance
material to the financial
Noncompliance's were identified in relation to the internal controls over federal
statements
programs. See findings 2008-1 and 2008-2.
Type of report on
Qualified Opinion
compliance with
major programs
Findings and
Known questioned cost as described below were in excess of $10,000.
Questioned Cost for
Federal Awards as
Defined in Section
.510(a), OMB
Circular A-133
Dollar Threshold
$300,000
Considered Between
Type A and Type B
Federal Programs
Low Risk Auditee
Statements
The entity was not classified as a low-risk auditee in the context of OMB Circular A-133.
Major Federal
Section 8- Lower Income Rental Assistance; CFDA 14.856
Programs
Title XX - Home Delivered Meals; CFDA 13.667
Pass-through Entity
Department of Housing and Urban Development
Department of Health and Human Services
20
- 000153
Lamar County Human Resources Council, Inc.
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2008
PROGRAM
Description
Schedule Reference #
2008-1
Program Name
Title XX - Home Delivered Meals
ProjecdContract
Number
04K2173
CFDA Number
13.667
Criteria:
The Title XX contract contains numerous special provisions and guidelines, such as
service initiation, complaints, and training of both staff and volunteers.
Condition Found:
The organization was in violation of one special provision. The organization's
staff and volunteers are required to receive minimum one hour training
prior to contact with clients.
Questioned Cost
None
Instances
Continual
Effect
Organization is not in compliance with guidelines of the contract.
Recommendation
Management should only allow trained volunteers to assist with this major program.
PROGRAM
Description
Schedule Reference
Number
2008-2
Program Name
Title XX - Home Delivered Meals
Project/Contract
Number
04K2173
CFDA Number
13.667
Criteria:
The organization is required to take physical inventory at least every two years of all
property, assets, etc. owned by the organization. The list must contain serial numbers,
whether or not its federal funds that originally purchased it, location, value, cost, usage,
etc.
Condition Found:
The organization's last physical inventory was in December 2003
Questioned Cost
None
Instances
One
Effect
Organization is not in compliance with special provisions of the contract.
Recommendation
Management should conduct a physical inventory as required.
ll
" 000154
Lamar County Human Resources Council, Inc.
Summary Schedule of Prior Findings
For the Year Ended September 30, 2008
PROGRAM
Description
Schedule Reference #
2007-1
Program Name
Section 8-Lower Income Rental Assistance
Project/Contract #
Number
HUD Project # 112-44199
CFDA Number
14.856
Criteria:
Projects are required to establish and maintain a separate Replacement Reserve Account
to provide for the replacement of a project's capital items. Funds in the account are
accumulated through monthly payments as stipulated in the regulatory agreement.
Condition Found:
The project failed to make a required monthly payment to the Replacement
Reserve Account as stipulated in the regulatory agreement
Status
Finding was corrected during current year.
PROGRAM
Description
Schedule Reference #
2007-2
Program Name
Section 8-Lower Income Rental Assistance:CFDA 14.856
Project/Contract
Number
HUD Project # 112-44199
14.856
CFDA Number
N/A
Criteria:
Projects are required to establish and maintain a separate Replacement Reserve Account
to provide for the replacement of a project's capital items. Disbursements from the
account require HUD approval.
Condition Found:
Unauthorized disbursements were made from the Replacement Reserve Account.
Status
PGNA has requested permission from HUD to make installment payments. There was
one payment made in current year thus far.
PROGRAM
Descrintion
Schedule Reference #
2007-3
Program Name
Title XX - Home Delivered Meals
Project/Contract
Number
04K2173
CFDA Number
13.667
Criteria:
The Title XX contract contains numerous special provisions and guidelines, such as
service initiation, complaints, and training of both staff and volunteers.
Condition Found:
The organization was in violation of one special provision. The organization's
aa
, 000155
Lamar County Hutnan Resources Council, Inc.
Summary Schedule of Prior Findings
For the Year Ended September 30, 2008
staff were not properly trained prior to providing service, nor were volunteers
properly trained prior to providing service.
in mg was improve uring current year. ee current year finding 2008-1.
PROGRAM
Description
Schedule Reference
2007-4
Number
Program Name
Title XX - Home Delivered Meals
Project/Contract
04K2173
Number
CFDA Number
13.667
Criteria:
The organization is required to take physical inventory at least every two years of all
property, assets, etc. owned by the organization. The list must contain serial numbers,
whether or not its federal funds that originally purchased it, location, value, cost, usage,
etc.
Condition Found:
The organization's last physical inventory was in December 2003
Status
Finding was not corrected during current year. See current year finding 2008-2.
23
m 000156
Lamar County Human Resources Council, Inc.
Plan of Corrective Action
For the Year Ended September 30, 2008
Descriation
Schedule Reference #
2008-1
Condition Found:
The organization was in violation of one special provision. The organization's
staff and volunteers are required to receive minimum one hour training
prior to contact with clients.
LCHRC agrees with stated condition and recommendations made by
uoncurrence
the auditors.
ticuon
Tanteta Hilliard, Executive Director provides training to all paid staf£ Volunteer
training sessions, when provided, are not well attended by volunteers. Management
will encourage and document volunteers that attend training sessions.
Describtion
Schedule Reference #
2008-2
Condition Found:
The organization's last physical inventory was in December 2003
k-oncurrence
LCHRC agrees with stated condition and recommendations made by
the auditors.
ticnon
Executive director plans to conduct a physical inventory as required.
24
p 000157
Foe F.~~ii,
14~7
SheCter Agencies for FamiCies in Ea.st exas, Inc.
P. 0. Box 2337
204 Patrick Street
~sSAFE-TMt. Pleasant, Texas 75456-2337
utle , 2uug Phone: (903) 572-0973
RECEIVED Fax: (903) 572-0982
Mr. Gene Anderson www.safe-tagency.com
Finance Director, City of Paris ,
.
P.O. Box 9037
Paris, TX 75461 CITy MAIVAGER
PARIS, TEXAS
Dear Mr. Anderson:
Enclosed is the request for public funding submitted by Shelter Agencies for Families in East Texas, Inc. aka SAFE-
T. Founded in 1995 in Titus County, SAFE-T has been providing shelter services, domestic violence, and sexual
assault services to victims of crime. In November of 2007 a group of citizens from Paris representing a variety of
service agencies visited Mt. Pleasant to request our services. SAFE-T had recently opened an outreach office in
Hopkins County, and did not have extra funds to spend in Paris. The group asked if they found free office space
and volunteers, would we come.
This persuasive group of people found a free office, donated by Mr. David Glass in the Capitol One Building as well
as volunteers to work as advocates. SAFE-T provided the training needed, as well as funds to pay for phone
service and supplies. Furnishings were donated by NETCADA. At the time that SAFE-T opened this office, we
assumed it would be a temporary situation. as Family Haven was under investigation and no one had any idea
that the investigation would be so lengthy. During this long wait, SAFE-T was asked to begin a Sexual Assault
Program which started in February 2009. There are several volunteers who respond on call to the hospital when
there is a sexual assault survivor who needs the presence of an advocate. Advocates are needed in order to
conduct a SART (Sexual Assault Response Team) which SAFE-T formalized at this time. The Child Advocacy Center
has been used many times for our trainings as well as a meeting place for the Crime Victims Council.
At the time of the submission of this application, we will be viewing an abandoned nursing home which might be
"d
usable for a shelter for victims of domestic violence. We will try to see this building by July 2. Of course funding
is always an issue, and we would have to depend heavily upon funds from the Texas Department of Health and
Human Services in order to open a satellite shelter. They will fund only a portion of funds needed to pay 24/7
staff, insurance, food, supplies, etc.
Funds are not being requested for a shelter at this time, as it will take many months to coordinate and finalize
these plans, but rather we are requesting funds to provide a person to serve as an Advocate that will be able to
provide education to the community about SAFE-T services, crisis intervention, legal advocacy, peer counseling,
and referral to shelter in Mt. Pleasant. This Advocate would also help to coordinate plans to open a shelter and
work closely with the Administration office in Mt. Pleasant. We will hire a Paris resident to fill this position.
I will not be able to attend the City Council meeting in Juty, as I will be in Houston that day. I am sending a SAFE-T
representative to the meeting, should there be any questions that need to be answered. Thank you for your
consideration.
Respectfully,
0&u:1 l ()v S i..f ti~
Carol Gresham
Executive Director O O~ C g
J
REQUEST FOR PUBLIC FUNDING
Non-Profit agencies requesting funding from the City of Paris for projects that benefit the Citizens of Paris must complete
the following information to be eligible for consideratioii (you may use additional pages, if necessary). In addition, please
submit with this form a copy of your agency's most recent financial statement or audit and a detailed budget for the
project. Agencies must also make a brief presentation on their project at a city council meeting.
Agency Name: Shelter Agencies For Families in East Texas aka SAFE-T Date: June 23, 2009
Agency Mailing Address• P.O. Box 2337 Mt. Pleasant, TX 75456-2337
Agency Phone Number• Admin Office 903 572 0973• Paris office 903 785-1313 Agency Fax Number: 903 572 0982
Contact Person: Carol Gresham Contact's Title: Executive Director
Contact's e-mail Address: director Asafe-tagencv.com
Name of Project: SAFE-T Outreach Office - Paris
Location of Project: 1579 Clarksville Street Paris, TX
Summary of Project: SAFE 7'provides victim services specifically far domestic violence sexual assault, stalking and
dating violence Founded in Titus County in 1995 SAFE-T has been providing limited services in Paris for the past 18
months through funds raised in 'Titus Countv A one room office located in the SAFE-T Thrift Store (1579 Clarksville
Street Paris) serves as the Outreach office that provides serves to victims of abuse Counseline crisis intervention,
referrais to other agencies transportation to shelter in Titus County, legal advocacv and other services are provided at this
location Group counseling is provided at an undisclased location Funding limits our services. A larger office is needed to
accommodate the counseling, groups paid advocates and volunteers who provide services. A full_ time advocate is needed
to provide communitv education to victims informin_g them of the services available assist with proQrams and maintam
client files. Last November SAFE-T opened a Thrift Store in Paris for the.purpose of pavi~n for program costs. So far,
with the depressed economy, the store has not made the income that was expected. We are confident that revenue will
continue to increase and within a year of two will be able to supUOrt manv programs The Mt. Pleasant Thrtft store
produces revenue of $120 OOO/year with expenses of around $60 000 leaving these funds to pav for non grant funded
expenses.
Last February SAFE T began a Sexual Assault Program under the direction of Nikki Norton the SANE (Sexual Assault
Nurse Examiner) This program is manned by volunteers and responds to calls from Paris Regional Hospital.
Describe how your project wi11 benefit the City of Paris and its citizens: SAFE-T is the onlY agency currentlv
providing domestic violence and sexual assault services in Paris. Bv providing our services to clients the trauma of the
crime may be reduced and limit the response of law enforcement aeencies to the same house over and over again.
Services and education to clients maY reduce the number of hospital ernergencv admissions for iniuries resulting froni
violent acts. Many of the SAFE-T clients are at or below povertv level income and are not able to pav for medical or other
ser-vices. All of SAFE-T services are free to clients.
List other sources of funding for this project and the amounts: Fund raisers in Titus County - $3,000; United Way of
Lamar County $8 000 (we have asked but have not vet received confirnlation)
is a detailed project budget, including columns and descriptions for allocations of city funding and the agency's
matching funcis attached? [A Yes 1-1 No
ls the agency's most recent f nancial statement or audit attached? ,l Yes F] No
Have you received funding from the City of Paris in the last five years for this or any other project? Q Yes E: No
If you have received pervious city funding, list the name of the project, the amount of the City's award, and the
year awarded: N/A
City of Paris Revised 6/10/08
« 000159
Detailed descriptions of project (including description of need, scope of work, methodology, who benefits,
number of beneficiaries, other project partners, etc.): SAFE-T was founded in Titus Countv in 1995 to assist
victims of domestic violence and sexual assault The first shelter opened in AuQUSt 1996 with fundin~z from Texas
Health and Human Services Commission and later funds from the Office of the Attornev General for a Sexual Assault
Program Since that time SAFE T staff and bud e~ t has ¢rown from 2 volunteers to over 24 emplovees with a startine
budget of $21 000 to over $550 000/year SAFE-T now serves a population of approximately 210,000 people and a
land area of 4,828 square miles The counties we serve are• Titus Camp Delta Franklin Hopkins Morris, Lamar and
Red River. In the past 14 years many things have been accomplished including• renovating a dav care center into a
shelter, opening Thrift stares (3) and building a 7,200 square foot Administration /Education Non-residential services
center in 2005 The shelter and Mt Pleasant Thrift store are debt free and owned bv SAFE-T. The Admin office has a
remaining balance of $210 000 which is reduced from profit made from the Mt. Pleasant Thrift Store. Emergencv
reserve funds remain at $100.000.
Approximatelv two vears ago a Qroup of citizens from Lamar County visited the SAFE-T Board and Staff in Mt.
Pleasant in order to ask for assistance in providin¢ services for victims of domestic violence and sexual assault in
Lamar County. The result of the two hour discussion resulted in the opening of an office in Paris with volunteer
assistance This g up of service providers and concerned citizens included: Child Protective Service, CASA, business
members victims of abuse and the District Attorney's office At this time Familv Haven was providing minimal
services to victims but out of respect for this a enCV SAFE-T did not advertise and remained in the background
accepting referrals from the service agencies that brought it to Paris The intention originallv was to provide limited
assistance to victims on a tempararv basis limitin¢ the costs of services. As the referrals increased, SAFE-T realized
the need for a more permanent office that could provide longer hours of service The dilemma was funding, as Federal
and State funds had been reduced far all shelters makinQ it more difficult to maintain current proQrams. In spite of the
cut backs SAFE T maintainedprograms and actually increased outreach services An outreach office was opened in
Hopkins County along with a Thrift Store that would help support this outreach proeram. The office inside of the
Thrift Store was not the ideal situation but on a shoe string budget served both needs. This same model was used in
Paris in November 2008 The Thrift Store included two offices one which is used for providing client services and the
other as an office for the store This office is open from 10-6 p m Mondav-Saturdav. Store staff is trained to provide
crisis intervention and other services Counseling is provided weekly to approximatelv 10 clients bv a volunteer
counselor Dr. Claire Haslam SAFE T Thrift Stores not only provide an income to assist with non-Qrant expenses, but
also assist clients who are in need of clothing and furnishings for housing which are accessed bv voucher.
With the closing of Family Haven and other local shelters in Paris victims of domestic violence are not aware that
there is an agency available for assistance SAFE-T provides shelter to victims from Lamar Countv bv transportation to
Mt Pleasant This mav not be the best scenario for each client but it is the best that we can offer at the present time.
We are working with the Crime Victims Counsel to develop alternate means of shelter, as well as the Department of
Human Services which mav possibly approve a satellite shelter for SAFE-T next December. There are manv
conditions which must be satisfied before a shelter can be opened In the meantime as we work behind the scenes for
shelter services we must educate the community re au rding the services that are in place right now. We are in need of
funds topav for an Outreach Advocate that would be hired from the Paris area to develop a plan to advertise these
services through media PSA (Public Service Announcements) presentations to civic and church Uoups, and
or ag nizin2 programs such as already in place in Mt Pleasant For example• Anger Management Proerams for men,
women and teens housing assistanceprograms and legal advocacy. This Advocate would also be responsible for
coordination of efforts to secure a shelter for the Paris area.
These funds from the City of Paris would be used wisely for_part of a salary for the Advocate prozram supplies
(printed materials files etc) and mileage (d) 40/mile to travel to Mt Pleasant to transport clients to shelter, and bring
them back to Paris for court appearances and other needed appointments These are our short term goals. Our lonQ
term goals includeopening or assisting with openin a shelter in Paris while developing the Non-Resident Programs at
the Outreach Office. In the near future we will also need to mo e f i from the Thrift Store as more clients come
M UUU-LDU
in for services and more programs are implemented We will need enough financial support to hire two persons in
order to iustifv the opening of another office We will use volunteers but two staff members would be needed to assure
continuation of services to clients.
Last year SAFE T provided services to approximately 73 clients from Lamar Countv. We estimate that in 2009 that
number will increase to over 100 We currently have two Paris residents in the shelter which can hold 25 people. There
are five bedrooms with five bunk beds in each room We can add cribs or pallets far children when needed. We haye
full time staff 24/7 I have attached pictures of our shelter and offices since travel to visit these in Mt. Pleasant might
be a hardship for some City Council Members.
We have also included several brochures that list our services as well as pictures of the shelter and Outreach offices.
The City of Paris citizens have been very supportive of helping victims of domestic violence and sexual assault. We
are fortunate to be able to work with such dedicated people Anv financial assistance that the City of Paris can provide
to SAFE T will be reinvested in this communitv by~providing support services to victims of abuse with the goal of
keeping victims safe while reducing the trauma of abuse.
SAFE T would like to request $10 000 from the City of Paris as start up funds for the SAFE-T Paris Outreach Office
and the possibilitv of opening a shelter in 2010 The Outreach office will generate community support as well as
educate clients re ardin the services that we provide.
Although we do not haveprojectpartners the Crime Victim Council has been a Qreat support to us as has law
enforcement the District Attorney's Office CASA The Child Advocacy Center and Child Protective Services.
City of Paris
Revised 6/10/08
M 000161
Paris Outreach Office Proposed Budget
Outreach Advocate
FTE salary and benefits $ 21,000.00
Advocate
Part time employee $ 14,200.00
Utilities
Phone service $ 725.00
Water, sewer,trash $ 440.00
Electric/gas $ 3,000.00
Project Supplies $ 900.00
Copier $ -
Furnishings $ 400.00
Rent @ $400/month $ 4,800.00
Insurance $ 900.00
Mileage @.40/mile x 2000 miles $ 800.00
Total Project Budget $ 47,165.00
SAFE-T funds: 3,500
United Way of Lamar County (requested) 8,000
Paris Thrift Store: 13,665
Paris Community Donations 8,000
HHSC Grant 4,000
City of Paris: 10,000
47,165
This is a projected budget which includes a larger office space. Budget items are listed
according to priority, with the Advocate being the most important. SAFE-T has some
furnishings, computer, savin copier, and office suppiies that will match these funds.
SAFE-T staff from Mt. Pleasant will also provide support services such as training, legal
advocacy, etc.
The Paris Thrift Store will contribute all of it's profit to this project.Funds raised in Paris
will remain in Paris.
p 000162
SHELTER AGENCIES FOR FAMILIES
IN EAST TEXAS, INC.
ANNUAL FINANCIAL REPORT
For the period ended August 31, 2008
1. 000163
ARNOLD, WALKER, ARNOLD, & CO, P C
CeYtified Pzcblic Accountants ccnd Consultants
Bob J. Arnold, C.P.A.
Lanny G. Walker, C.P.A.
; Kris Arnold, C.P.A.
Andrew T. Arnold, C.P.A.
Melissa J. Godfrey, C.P.A.
NDEPENDENT AUDITOR'S REPORT
Board of Directors
, Shelter Agencies for Families in East Texas, Inc.
' Mount Pleasant, Texas
NIEN(BfiR
American Institute Of
Certified Public Accountants
Texas State Society Of
Certified Public Accountants
We have audited the accompanying statement of net assets of Shelter Agencies for Families in East Texas, Inc. (a not-for-profit
' corporation) as of August 31, 2008 and the related statements of activities, cash flows, and statement of functional expenses for the
period then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Governmental 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 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 our audit provides a reasanable basis for our opiruon.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Shelter
Agencies for Families in East Texas, Inc., as of August 31, 2008, and the changes in net assets and its cash flows for the period then
ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated January 7, 2009 on our consideration of the
Shelter Agencies for Families in East Texas, Inc. intemal control over financial reporting and our tests of its compliance with
provisions of laws, regulations, contracts, grant ab eements, and other matters. The purpose of that report is to describe the scope of
our testing of intemal control over financiai reporting and compliance and the results of that testing and not to provide an opinion on
the internal control over financial reporting or compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the financial statements of Shelter Agencies for Families in East
Texas, Inc. 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 Nlanagement and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations, and is not a required part of the financial statements. The schedule of eYpenditures of federal awards has been
subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated, in all material
respects, in relation to the financial statements taken as a whole.
Q- W ~ ~ (o .
ARNOLD, WALKER, ARNOLD & CO., .C.
January 7, 2009
915 N. Jefferson Street . PO Box 1217 • Mt. Pleasant, Texas 75456-1 2 1 7 .(903) 572-6606 . Fax (903) 572-3751
Email: fir,n@awacpa.com
• uUule4
Statement of Financial Position
As ofAugust 31, 2008
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Prepaidinsurance
Total cun-ent assets
RESTRICTED ASSETS
Cash and cash equivalents
Due from state agencies on grants
Total restricted assets
NONCURRENT ASSETS
Property and equipment--net of
accumulated depreciation
Total assets
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Current portion of notes payable
Payroll benefits payable
Total current liabilities
LONG-TERM LIABILITIES
Notes payable--net of current portion
Total liabilities
NET ASSETS
Unrestricted
Temporarily restricted
Pennanently restricted
Total net assets
Total liabilities and net assets
The accompanying notes are an integral part of this statement.
2
169,058
2,423
171,481
34,271
98,292
132,563
926,793
1,230,837
16,473
3,869
20,342
222,288
242,630
855,644
132,563
988,207
1,230,837
" 000165
, vl~ LruviiL,ii'.J 11V L',.`1J1 1C.:L`1J, 11V1..
Statement ofActivities
Year ended August 31, 2008
CHANGES 1N LNRESTRICTED NET ASSETS
Revenues
Donations and fund raisers 89,723
Thrift Store 197,365
Interest 2,521
Total unrestricted revenue
290,109
Net assets released from restrictions
Grant revenue--
Violence Against Women .4ct 2007/2008
44,168
Violence Against FVomen Act 2006/2007
21,915
Victims of Crime Act-2007/2008
132,402
National Association of VOCA Assistance
Administrators - Community Awareness Program
5,000
Texas Department of Housing and Community Affairs--
Emergency Shelter Granu 2007/2008
38,054
Office of Attomey General
SAPCS 2006/2007
13,663
, SAPCS Federat 2007/2008
16,435
SAPCS State 2007/2008
26,512
Other Victims Assistant Grant 2006/2007
10,048
Other Victims Assistant Grant 2007/2008
35,756
Other Victims Assistant Grant 2005/2006
7,653
Texas Dapartment of health and Human Secvices--
Family Violence Program 2006/2007
14,639
Family Violence Proo am 2007/2008
154,478
Special Nonresidential Project Services 2007/2003
40,042
Family Violence Program Exception 2007/2008
36,415
` Total net assets released from restrictions
597,180
' Total unrestricted revenues and other support
887 Zg9
Expenses
Advertising
3,430
Salaries
434,152
Payroll taxes
55,258
Insurance
28,760
, Interest expense
16,210
! Training/education/travel
14,605
Office supplies and expense
41,449
Professional fees
3,366
' Fund raising expense
11,753
Telephone
$ 797
Utilities
27,977
Rent
18,200
Repair and maintenance
22,477
Client services and counseling
154
Housing assistance
21,962
Legal fees-clients
45,000
Miscelianeous
31,004
Depreciation
33,974
Total expenses
318,528
Increase in unrestricted net assets
68,761
CHANGES IN TEMPORARILY RESTRICTED tiET ASSETS
Net assets restricted
14,480
CHANGES IN PERN(ANENTLY RESTRICTED NET ASSETS
_
Increase in net assets
33,241
Net assets at September 2007
904,966
Net assets at August 31, 2008
983207
The accompanying notes are an integral
part of this statement.
-3-
p 000166
. _ - i< ur11L1LJ 11V
Statement of Cash Flows
Year ended August 31, 2008
CASH FLOWS FRONI OPERATNG ACTIVITIES
Increase in net assets
Adjustments to reconcile change in net assets to
net cash provided by operatin.- activities:
Depreciation
Increase in due from state agencies
Increase in payroll benefits payable
Invested in prepaid insurance
Net cash provided by (used by) operating activities
CASH FLOWS FROVI IWESTING ACTIVITIES
Purchase ofproperty and equipment
CASH FLOWS FROM FINANCING ACTIVITIES
Principal paid on loans
Net cash provided by (used by) fmancing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at September 1, 2007
Cash and cash equivalents atAugust 31, 2008
The accompanying notes are an inte(yral part of this statement.
-=i-
83,241
33,974
(14,136)
3,869
(2-=._423)
104,525
(23,924
(22,603)
(22,603)
57,998
145,331
203,329
, aools"1
•~~.~.`,~L;~ ~ v~ rruv111,1~J ilv ~f1J 1 1r,Xt1J, 1N~:.
Statement of FunctionaI Expenses
Year ended August 31, 2008
Pro?ram
General and
Thrift Store and
Services
Administrative
Fund-Raising
Totals
Advertising
1,324
2,106
-
3,430
Salaries
370,193
943
63,016
434,152
Payroll tases and benefits
45,146
2,427
7,685
55,258
Insurance
19,880
5,570
3,310
281760
Interest expense
-
16,210
-
16,210
TraininJ/ educationaU travel
9,309
5,296
-
14,605
Office supplies and expense
30,016
846
10,587
41,449
Professional fees
2,716
650
-
3,366
Fund raising expense
-
-
11,753
11,753
Telephone
8,172
625
_
8,797
Utilities
16,570
5,812
5,595
27,977
Rent
4,382
4,550
9,268
18,200
Repair and maintenance
20,649
1,828
_
22,477
Client services and counseling
154
-
-
154
Housing assistance
20,692
1,270
-
21,962
Legal fees-clients
45,000
-
45,000
Miscellaneous
17,114
12,267
1,623
31,004
Total allocated
611,317
60,400
112,837
784,554
Depreciation unallocated 33,974
Total
818,528
The accompanying notes are an integral part of this statement.
-5-
« 000168
rvtc rtuv11L1CJ 1N LAJ1 1tX1'.J, 1NC:.
Notes to the Financial Statements
Auo st 31, 2008
NOTE 1--NATURE OF ORGANIZATION ~vD SIGIVIFICANT ACCOLINTING POLICIES
Nature of Activities
The Shelter Agencies for Families in East Texas (the Organization) provides crises intervention services to residents of Titus,
Franklin, Morris, and Camp counties. The organization offers specialized services for victims of family violence and sexual
assault. Services provided include a 24 hour hotline, emergency shelter, public education, short tenn professional
counseling, assistance with victim's compensation, and advocacy with law enforcement, hospitals, and other government
agencies.
Basis ofAccountine
The financial statements are prepared using the accrual method of accounting. Revenues are recognized when earned, and
expenses are recognized when incurred.
Contributed Services
During the period ended August 31, 2008, the value of contributed services meeting the requirements for recognition in the
financial statements was not material and has not been recorded. In addition, many individuais volunteer their time and
perform a variery of tasks that assist the organization at the residents' facilities. The organization receives approximately
8,000 volunteer hours per period.
Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect certain reported amounts and disciosures. Accordingly, actual results could differ
from those estimates.
Property and Equipment
Donations of property and equipment are recorded as support at their estimated fair value. Such donations are reported as
unrestricted support unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit
restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as
restricted support. The organization did not have any restricted support for the period ended August 31, 2008. Property and
equipment acquisitions are recorded at cost. Property and equipment are depreciated using the straight-line method over the
estimated useful lives as follows:
Assets Years
Buildings 39
Furniture & fixtures 7
Equipment 5-7
Income TaYes
The organization is a non-profit organization that is exempt from income taxes under Section 501(c)(3) of the Internal
Revenue Code.
Investments
The Shelter had no investments for the period ended Au;ust 3 I, 2008.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the organization considers all highly liquid investments available for current use
with an initial maturity of three months or less to be cash equivalents.
Concentrations of Credit and Market Risk
Financial instruments that potentially expose the organization to concentrations of credit and market risk consist only of cash
equivalents. Cash equivalents are maintained only at high-quality financial institutions and credit exposure is limited. The
organization has not experienced any losses on its cash equivalents. Since the organization only has demand and savings
type accour.ts, there is no market risk,
-6-
• 00010
~ ~,~~.~v.,,i;,~ L vt~ rruv11L1~J 11V r,HS 1 1 t,XAJ, 1NCi.
Notes to the Financial Statements
August 31, 2008
NOTE 2--PROPERTY AND EQLTIPMENT
Properiy and equipment consist of the following:
Land
Sib s
Buildings
Furniture and fixtures
Machinery and equipment
Vehicles
Leasehold icnprovements
Less accumulated depreciation
Depreciation expense for the year is $33,974.
NOTE 3--GRANT ACTMTY
74,904
2,133
922,768
41,020
52,519
16,842
3,235
(186,628)
926.793
In the noimal course of operations, the organization receives grant funds from various Federal and State Agencies. The grant
programs are subject to audit by agents of the granting authority, the puipose of which is to insure compliance with
conditions precedent to the granting of funds. Aay liabiliry for reimbursement which may arise as the result of these audits is
not believed to be material.
NOTE 4--NOTES PAYABLE
In 2004/2005 $400,000 was borrowed to construct a new office building. The construction was completed and the note was
f2nalized in August, 2005. The note was to bear an interest rate of 62% and to be paid back in 180 monthly installments of
$3,419 beginning September, 2005. An additional $100,000 of principal was paid in December, 2005 to reduce the note
balance to $245,623. Regular monthly payments and an additional $8,000 of principal were paid during the current year.
This balance is being retired at $2,568 per month of principal and interest. The note still has an interest rate of 6.2%.
Interest
Interest
Note
Note
Rate Origianl
Current
Balance
Issued/
Balance
Payable Note
Year
9/1/2007
Retired
8/31/2007
Office Building Note 6.20% 400,000
16,210
261,364
22;603
238,761
23876--1
Debt requirements are as follows:
Year
Ended
8/31
Principal
Interest
Total
2009
16,473
14,340
30,813
2010
17,524
13,289
30,813
2011
18,641
12,172
30,813
2012
19,831
10,982
30,813
2013
21,096
9,717
30,813
2014-2018
127,468
26,597
154,065
2019-2023
17,728
370
18,098
238.761
87.467
326.228
-7-
• UU(1170
~n~i. i l:n nvr,iv ~,i~~ r vtc rrllv11L1r,J liV C,P.J 1 1~Xr1J, 1N1:.
Notes to the Financial Statements
August 31, 2008
NOTE 5--TENIPORARILY RESTRICTED NET ASSETS
Temporarily restricted net assets at August 31, 2008 are composed of.
Due from state-TDHHS
Family Violence Program
14,043
Special Nonresidential Project
16,836
Family Violence Program-Exception
11,537
Due from state-VAWA grant
18,027
Due from state-Office of Attorney
General--SACP S-Federal
11,769
Due from state-Office of Attorney
General--SACPS-State
10,685
Due from state-Office of Attorney
General--Other Victim Assistance Grant
14,244
Due from state-TDHCA
Emergency Shelter Grants
1,151
Restricted cash in bank--
Cash in bank-capital improvements
10,114
Cash in bank-USRD Reserve--debt service
10,157
Investment-Edward Jones Money Market
14,000
Total
132,563
NOTE 6--FUNCTIONAL EXPENSES
The organization allocates its expenses on a functional basis among its various programs and support services. Expenses that
can be identified with a specific program or support service are allocated directly according to expenditures classification.
Other expenses that are common to several functions are allocated based on management's estimates. Expenses are either
program expense, general and administrative, or thrift store and fund raising. The organization's principal programs are
related to family violence and sexual assault. N1ost of the funding has been from grants.
NOTE 7--PERMANENTLY RESTRICTED NET ASSETS
There are no permanently restricted net assets at Aucrust 31, 2008.
NOTE B--COMNIITMENTS AND CONTINGENCIES
There are no significant commitments or contingencies at August 31, 2008.
NOTE 9--LITIGATION
There is no pending litigation at Auwst 31, 2008.
-4-
« U(}U171
FEDERAL AWARDS
, 000172
um
ARNOLD, WALKER, ARNOLD, & CO., P.C.
Certified Pzcblic Accountants and Consultants
Bob J. Amold, C.P.A.
Lanny G. Walker, C.P.A.
Kris Amold, C.P.A.
,andrew T. Amold, C.P.A.
Melissa J. Godfrey, C.P.A.
ivfEMBER
American Institute Of
Certified Public Accountants
Texas State Society Of
CeRified Public AccountanU
REPORT ON INTERN.4L CONTROL OVER FINANCIAL REPORTPI i G AND ON
COVIPLIANCE AND OTHER INIATTERS BASED ON Ai'V AUDIT OF FINANCLIkL, STATENIENTS
PERFORititED INACCORDAiNCE WITH GOVERNAIEIVT AUDITIIVG STArVDARDS
Board of D'uectors
Shelter Agencies for Families in East Texas, Inc.
Ivfount Pleasant, Texas
We have audited the financial statements of Shelter Agencies for Families in East Texas, Inc. as of and for the year ended Auo st
31, 2008, which collectively comprise the Agency's financial statements and have issued our report thereon dated, January 7,
2009. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards appiicable to financial audits contained in Government Az«liting Standards, issued by the Comptroller General of the
United States.
Internal Control Over Financial Reporting
In planning and perfonning our audit, we considered the Agency's internal control over financial reporting in order to detemune
our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Agency's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the Agency's intemal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph
and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies
or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial
reporting that we consider to be significant deficiencies.
A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal
course of perfornung their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a
control deficiency, or combination of control deficiencies, that adversely affects the Agency's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than
a remote likelihood that a misstatement of the Agency's financial statements that is more than inconsequential will not be
prevented or detected by the Agency's internal control. We consider the deficiency described in the accompanying schedule of
findings and questioned costs as item 08-1 to be a significant deficiency in internal control over financial reporting.
A material wealmess is a significant deficiency, or combination of significant deficiencies, that results in more than a remote
likelihood that a material misstatement of the financial statements will not be prevented or detected by the Agency's internal
control.
Our consideration of the intemal control over financial reporting was for the limited purpose described in the first paragraph of
this section and would not necessarily identify all deficiencies in intemal control that might be significant deficiencies and,
accordingly, would not necessanly disclose aIl significant deficiencies that are also considered to be material weaknesses.
However, we believe the significant deficiency described above is not a material weakness.
915 N. Jefferson Street . PO Box ]217 • Mt. Pleasant, Texas 75456-1217 .(403) 572-6606 . Fax (903)572-375 1
EmaiL firm@awacpa.com
» 00(?173
Compliance and Other Niatters
As part of obtaining reasonable assurance about whether the .Agency'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 Aaiditing Standards.
This report is intended solely for the information and use of management and federal awarding agencies and pass-through entities
and is not intended to be and should not be used by anyone other than these specified parties.
Arnold, Walker, Amold & Co., P.C.
January 7, 2009
~ 0001 / 4
.
ARNOLD, WALKER, ARNOLD, & CO, P C
Certified Public Accozintants and Consultants
Bob J. Amold, C.P.A.
tanny G. 1Valker, C.P.A.
Kris Ainold, C.P.A.
Andrew T. Ainold, C.P.A.
tvte(issa J. Godfrey, C.P.A.
MEivSBER
American Institute Of
Certified Public Accountants
Texas State Society Of
Certified Public Accountants
REPORT ON COMPLIkiNCE `VITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAiM AiND ON INTERNAL
CONTROL OVER COMPLL4NCE IN ACCORDAiNCE `VITH OVIB CIRCULAR A-133
Board ofDirectors
Shelter Agencies for Families in East Tesas, Iac.
Mount Pleasant, TX 75455
Members of the Board:
We have audited the compliance of Shelter Agencies for Families in East Texas, Inc. with the types of compliance requirements
described in the U.S. Office of Nlanagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to
each of its major federal programs for the year ended August 31, 2008. The Agency's major federal programs are identified in
the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the
requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the
Agency's management. Our responsibility is to express an opinion on the Agency'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 General of
the United States; and OIvIB 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 major
federal program occurred. An audit includes examining, on a test, evidence about the Agency's compliance with those
requirements and perfornung 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 of the Agency's compliance with
those requirements.
In our opinion, the Agency 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 August 31, 2008.
InternaI Control Over Compliance
The management of the Agency is responsible for establishing and maintairung effective internal control over compliance with
the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and perfornung our audit,
we considered the Agency's internal control over compliance with the requirements that could have a direct and material effect on
a major federal program in order to deternune our auditing procedures for the purpose of espressing our opinion on compliance,
but not for the puipose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not
express an opinion on the effectiveness of the Agency's internal control over compliance.
915 N. Jefferson S[reet . PO Box 1217 . bit. Pleasant, Texas 75456-1217 .(903) 572-6606 . Fax (903) 572-3751
Email: firm@awacpa.com
.000175
A control deficiency in an entity's internal control over compliance exists when the design or operation of a control does not
allow management or employees, in the nonnal course of perfornung theu assigned functions, to prevent or detect noncompiiance
with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or
combination of control deficiencies, that adversely affects the entity's ability to administer a federal program such that there is
more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than
inconsequential will not be prevented or detected by the entity's internal control.
A material weakness is a si,,onificant deficiency, or combination of sijnificant deficiencies, that results in more than a remote
likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or
detected by the entity's internal control.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section
and would not necessarily identify all deficiencies in intemal control that might be significant deficiencies or material
weaknesses. We did not identify any deficiencies in internal control that might be significant deficiencies or material wealrnesses.
This report is intended solely for the information and use of management, the Board, and others within the entity, and federal
awarding agencies and pass-throuah entities and is not intended to be and should not be used by anyone other than these specified
parties.
~W14~,X, / ~a/ ~c
Arnold, Walker, Arnold & Co., P.C.
January 7, 2009
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SCHEDULE OF FINDNGS AND QUESTIOiVED COSTS
FOR THE YEAR ENDED August 31, 2008
1. Summary of the Auditor's Results
a. The type of report issued on the financial statements was: Unqualified
b. Where applicable, a statement that significant deficiencies in internal control cvere disclosed by the audit of the financial
statements and whether they were material weaknesses. See 08-1 below, not a material weakness.
c. A statement as to whether the audit disclosed any noncompliance which is material to the financial statements of the
audited. None
d. Where applicable, a statement that reportable conditions in internal control over major programs were disclosed by the
audit and whether any such conditions were material weaknesses. None
e. The type of report the auditor issued on compliance for major programs. Unqualified
f. A statement as to whether the audit disclosed any audit findings which the auditor is required to report under Section
.510(a). These include: None
g. An identification of ma'or programs include: Texas Department of Health and Human Services FamiIy Violence
programs; CFDA # 93.6~I
h. The dollar threshold used to distinguish between Type A and Type B programs. $300,000
i. A statement as to whether the audit qualified as a low-risk audit. Yes
II. Findings Relating to the Financial Statements Which Are Required To Be Reported in Accordance with Generally
Accepted GovernmentAuditingStandards.
08-1 FINANCIAL STATEMENTS
Condition- Financial statements are not being generated from the system monthly. Adequate financial information appears to
be given to the Board monthly but it is having to be generated manually.
Criteria- Proper reporting to the Board should include a complete balance sheet and income statement generated from the
agency's bookkeeping software.
Cause- The Financial Duector has not been given all training available from the software provider.
Effect- Financial information given to the Board is having to be prepared basically manually by the Finance Director. With
comp lete train.ing by the software provider, this information could more simply be generated and printed using the
bookkeeping program.
III. Findings and Questioned Costs for Federal Awards Including Audit Findings as Described in I.f Above
None
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SCHEDULE OF STATUS OF PRIOR FINDNGS
For the year ended August 31, 2008
STATUS OF PRIOR YEARS
PROGRA-NI FINDNGS/NONCOMPLIANCE
07-1 The main operating bank account had not been reconciled to the book balance on a monthly basis. The account is being
reconciled timely now.
07-2 Deposits to the main bank account as weIt as some automated withdrawals such as for payroll taxes were not timely
posted to the books. Some of the withdrawals were not posted to the books. All items are being timely posted now.
07-3 During the prior year audit, it was discovered that the final draw on the 2005-2006 OVAG was never received. The
report was filed in October 2006 but the State never sent the money. A11 requests for funds were better tracked this year
and all had been received.
07-4 Thrift store deposits were still not being deposited daily durincy the year ended August 31, 2007. In the current year, this
has been conected. Deposits are being done daily.
07-5 A balance sheet and income statement are not being generated monthly. These should be generated and submitted to the
board for approval. See 08-1.
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- 000178
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CORRECTNE ACTION PLAi'V
For the year ended August 31, 2008
FIiND NG CORRECTIVE ACTION PLAiN
08-1 The Financial Director will receive the additional training from the software provider.
-I5-
000179
SCHEDULE OF EXPENDITURES OF FEDERAL/STATE AWARDS
For the year ended August 31, 2008
(1)
FEDERAI/STATE GR~'VTOR/
(2)
Fedeial
(3)
Pass-Through
(4)
PASS-ZHROUGH GRANI'OR/
CFDA
Fntiry Identifying
Fedetal/State
PROGRAM or CLUSTIIZ TITLE
Nim1ber
Number
-
i
ttu
es
Levartl-rnt of Justice
Narional Association of VOCA Assistance Actnnrustr-ators:
Con$mmityAwareness Project
16.575
08-014
5
000
Office of Governer-Crurrinal Justice Division:
,
Volence Against Women Act-Fomila Grant
16.588
1348710
Vctin's ofCrimeAct
16.575
VA-07-V30-13731-09
62,195
116,164
Total Iepartment ofJustice
Denaztrmnt of HousinQ and i.hban Develapnmt
Texas Departo= of Housing and Comaauury flfaus
Erner'gency Shelter Giants:
Total Deparn=t of HL7D
Denartrrmt ofHealth
Office ofAttomey Genreal -Sexual Assault
Prevention and Crisis Services Division:
SAPCS-Federal
SAPCS-State
Other VctimAssistance Giant
Texas Departmer't of Health and Hiinnan Services:
Family VoIence progiam
Special Nom-esidential project Sen,ices
Family Biolence progiarrt-Exception
Total Depaitrwrlt of Heaith
Total Expenclitres of FederaUState Awards
183,359
14.231 420000068 39,205 ;
39,205
93.991
0844294
28,204
93.991
0805028
37,197
93.991
0803361
50,000
93.671
529-08-0013-00063
168,522
93.671
529-07-0104-0002
56,878
93.671
529-08-0013-00063A
47,952
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388,753
611,317
- OPP1180
Shelter Agencies for Families in East Texas, Inc.
NOTES ON ACCOUiNTING POLICIES FOR FEDERAL/STATE AWARDS
August 31, 2008
l. The Corporation utilizes the proprietary fund method of accountinge, whereby revenues and expenses are recomized on
the accrual basis.
Federal grant funds are considered to be earned to the extent of expenditures made under the provision of the grant, and,
accordin.gly, when such funds are received, they are recorded as deferred revenues until earned.
2. The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or
before the ending date of the federal project period estended 30 days beyond the federal project period ending date, in
accordance with provisions in Section H, Period of Availabiliry of Federal Funds, Part 3, OMB Circular A-133
Compliance Statement-Provisional 6/97.
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